1. Current Market Trends in Commercial Real Estate on the Westside Tanasbourne & Sunset Corridor Sub-Market Presented by: Tim Parker Vice President Melvin Mark Brokerage Company

2. BRIEF HISTORY OF THE SUB-MARKET 1999 – 2001 Prior to the Tech Wreck Speculative developers add up to 1,000,000 sf of combined flex office space in one year Historical absorbtion rates had been in the 300,000 sf range annually Major tenant types include call centers, telco switches and other back office financial centers

3. BRIEF HISTORY OF THE SUB-MARKET 2002 - 2006 Vacancy grow to record highs over 35% Vacancy reasons include: Telco switch industry consolidates downward High tech moves light manufacturing off-shore New speculative space isnt leased Vacancy grows in existing flex office space Most speculative development comes to a stand still Tenant representation brokers use these factors for leverage to obtain better close-in lease rates Core developers sell to speculative value-added investors waiting for recovery

4. BRIEF HISTORY OF THE SUB-MARKET 2007 Absorbtion begins to take place as other core submarkets vacancy rates decline

5. SNAP SHOT OF THE CURRENT MARKET Flex Office Space Total RBAVacancyAbsorbtionRents Sunset/Hillsboro 6.3 million 20.80% 106,207 sf $10.39 Total Market Area 19.0 million 12.10% (2007) 485,353 sf $10.57 14.90% (2006) 24.10% (2003)

6. SNAP SHOT OF THE CURRENT MARKET Industrial Warehouse Total RBAVacancyAbsorbtionRents Sunset/Hillsboro 10.8 million 3.40% 726,018 sf $5.40 Total Market Area 124.0 million 6.10% (2007) 2,602,681 sf $5.41 8.90% (2006) 14.70% (2003)

7. SNAP SHOT OF THE CURRENT MARKET Office Total RBAVacancyAbsorbtionRents Sunset/Hillsboro Class A 4.9 million 4.90% 30,941 sf $19.38 Class B 3.4 million 24.90% -99,598 sf $17.69 Total Market Area 73.0 million 10.10% (2007) 1,017,684 sf $19.39 10.70% (2006) 14.30% (2003) Major Leases: Farmers Insurance Call Center lease former GM On-Star Center104,000 sf Yahoo! Renews and expands current location 95,000 sf

8. BUILDING SALES Average Sale Cost Per Square Foot: Low $57/sf High $134/sf Office Cost/SFTotal SF Sale Price SolarWorld $ 95.00/sf 419,158 sf $40 million E-Tech $ 57.98/sf176,800 sf$10.25 million AmberGlen Equastone $126.90/sf535,238 sf$67.92 million AmberGlen $134.60/sf210,625 sf$28.35 million Ronler Corp. Center $120.28/sf157,138 sf$18.9 million

9. AVAILABLE LAND & LAND PRICES Industrial land price range is $6.00/sf to $8.00/sf Average industrial land price is $6.50/sf Intel land banks the balance of the major land in area There are less than 5 sites in the 40 to 50 acre range left Genetechs 75 acre purchase is the most recent major sale

10. SUMMARY Lows When close-in markets have high vacancy rates the Sunset Corridor is the first to empty and last to fill up Driving distance and traffic delays Available land for additional major corporations to locate or expand is extremely limited

11. SUMMARY Highs When the market is tight its a great place to be if you are already in the market Washington County and Hillsboro are possibility the most pro-business and make the process for expansion as reasonable as possible Typically rates are less expensive for leasing or buying space as compared to the core market

12. Current Market Trends in Commercial Real Estate on the Westside Tanasbourne & Sunset Corridor Sub-Market Presented by: Tim Parker Vice President Melvin Mark Brokerage Company