Triad Office Market Total Office Market: 27, 467,542 Total Sq. Ft. Vacant: 5,264,359 Vacancy Rate 19.2% Forsyth: 18.8%/Guilford 21% Average Rental Rate: $15.80 Average Class A Rental Rate: $17.65 Net Absorption YTD: -229,284 36,000 sq. ft. under construction

Industrial Market  Warehouse Market: 54,404,184  Total Sq. Ft. Vacant: 12,312,107  Vacancy Rate: 22.6%  Average Asking Rent: $3.49  Sq. ft. Under Construction: 301,910  Net Absorption YTD: -121,347  Over 8,000,000 sq. ft. vacant in buildings over 100,000 sq. ft.

Industrial Market  Flex Market: 13,019,283  Total Vacant Sq. Ft.: 2,300,783  Vacancy Rate: 17.7%  Average Asking Rent: $5.60  Under Construction: 16,200  Net Absorption YTD: -107,201

Retail  Total Retail Market: 36,617,044  Total Sq. Ft. Vacant: 10.8%  Average Asking Rent: $16.12  Sq. Ft. Under Construction: 379,000  Net Absorption: -159,138  Largest new retail is the 312,000 sq. ft. Tanger Factory Outlet in Mebane

Multifamily  Total # of Units: 55,576  # Vacant: 7,745  Vacancy Rate: 13.9%-increased from 11.6% in September 2008  new units with 791 absorbed, resulting in a 6% increase in vacancy  Construction has slowed, with only 665 units under construction.

Investment Sales  What is a market CAP rate?  Equity requirements are increasing  Walgreen’s no cash developer now needs $1,300,000  CAP rates are rising for most product types  Exceptions are in areas with barriers to entry  Value oriented purchasers are looking at long term potential  Lots of money on the sidelines waiting on the bottom

Land  Is there a market for Land?  Public Facilities-schools, fire stations, parks  Borrowing money on Dirt  Cash or owner paper  Residential Land Demand  Lot sales at low numbers in select markets  No townhome construction  Equity requirements have slowed demand for apartment land

Land  Office Site Demand  Owner/Users in the market-particularly medical  Commercial Site Demand  Fast Food  Convenience Stores  Self Storage  Drug store demand in targeted areas at reduced price  Demand from Anchor retailers will not return until at least 2012