Independently Owned and Operated Office Industrial Retail 2012 Retrench or Reboot? Commercial Real Estate Forecast

Independently Owned and Operated OFFICE

Independently Owned and Operated *Vacancy includes sublease space Source: Grubb & Ellis|Thomas Linderman Graham OFFICE

Independently Owned and Operated OFFICE Source: Grubb & Ellis|Thomas Linderman Graham

Independently Owned and Operated Source: Grubb & Ellis|Thomas Linderman Graham OFFICE

Independently Owned and Operated Source: Grubb & Ellis|Thomas Linderman Graham OFFICE

Independently Owned and Operated 2012 Forecast  Stronger absorption but still below previous recoveries  Overall vacancy below 18.5%, Class A vacancy below 15% by year- end  Class A rents will stabilize, increase in select submarkets OFFICE

Independently Owned and Operated 2012 Forecast  Limited development activity will lead to shortage of Class A space by 2013  Glut of Class B vacancy will improve in 2012 as Class A options become limited OFFICE

Independently Owned and Operated INDUSTRIAL

Independently Owned and Operated Sources: Triangle Business Journal, Grubb & Ellis|Thomas Linderman Graham INDUSTRIAL

Independently Owned and Operated INDUSTRIAL Sources: Triangle Business Journal, Grubb & Ellis|Thomas Linderman Graham

Independently Owned and Operated INDUSTRIAL Average Asking Rental Rates Sources: Triangle Business Journal, Grubb & Ellis|Thomas Linderman Graham

Independently Owned and Operated 2012 Forecast  Absorption will increase, but pace of recovery will remain modest  R&D/flex will benefit from a recovering office market  Warehouse/distribution stands to benefit from improving auto industry and on-shoring INDUSTRIAL

Independently Owned and Operated 2012 Forecast  Lack of class A space will keep asking rental rates stable to slightly higher  May see some build-to-suit activity, but little to no speculative construction INDUSTRIAL

Independently Owned and Operated RETAIL

Independently Owned and Operated Sources: Triangle Business Journal, Grubb & Ellis RETAIL

Independently Owned and Operated Sources: Triangle Business Journal, Grubb & Ellis|Thomas Linderman Graham RETAIL

Independently Owned and Operated Retailers Closing Locations RETAIL

Independently Owned and Operated New and Expanding Retailers RETAIL

Independently Owned and Operated 2012 Forecast  Strong demographics will keep the Triangle a top target for new and expanding retailers  Lull in construction completions will help bring vacancy down  More redevelopment and infill projects RETAIL

Independently Owned and Operated 2012 Forecast  Vacancy will trend slowly downward  Retailers will benefit from pent up demand and improving consumer confidence  Flight to quality will continue, but dwindling Class A options will help drive activity elsewhere RETAIL