Real Estate Reality Check Downtown Bellevue Office Space GARY GUENTHER | Office Specialist Senior Vice President Gary Guenther Partner - Senior Vice President GVA Kidder Mathews th Avenue NE, Suite 2400 l Bellevue, WA T l F l

SUPPLY/LANDLORDS Bellevue CBD Office Space Availability Rates:14% Quoted Rental Rates: $37.26/SF YTD Leasing Activity:123,273 SF YTD Leasing Activity 2008:784,801 SF Eastside Office Sales Activity: - YTD 2009: $18,000,000 – 7 transactions - YTD 2008: $98,000,000 – 27 transactions

LARGE BLOCKS & SHADOW SPACE 50,000 – 100,000 SF 11 spacesEastside Office Market 1 spaceBellevue CBD 20,000 – 50,000 SF 53 spacesEastside Office Market 14 spacesBellevue CBD Shadow Space = Currently leased, but unoccupied or scheduled for give-back

DELAYED PROJECTS BELLEVUE CBD PREVIOUSLY PROPOSED OFFICE PROJECTS The Summit/Phase III333,000 SF Beacon – NE 8 th 800,000 SF Lincoln II600,000 SF Washington Square600,000 SF Bank of America Site 400,000 SF SRO Site500,000 SF 3,233,000 SF

WHO ARE THE TENANTS BELLEVUE CBD OFFICE TENANTS BY SQUARE FOOTAGE LEASED

TENANTS TRENDS Renewals Over Relocation Flight to Savings Contraction – Do More with Less Extend & Blend/Reduce & Ride Landlord Due Diligence