1. U.S. Office Jobs Going Offshore Millions of Jobs (140 million sq. ft.) (193 million sq. ft.) (595 million sq. ft.) 0.1 0.8 1.2 3.4 Source: U.S. Department of Labor and Forrester Research, Inc., 2004 (53 million sq. ft.) 0.5 1.0 1.1 1.7 (298 million sq. ft.)

2. U.S. Office Inventory Impacts Multi-tenant inventory3,650,000,000 Today’s vacancy- 620,500,000 Occupied inventory3,029,500,000 Further demand loss to 2015 508,000,000 Sq. Ft.

3. U.S. Employment at Risk to Outsourcing - 2001 Total U.S. Employment127,980,410 Office Support8,637,900 Business and Financial Support2,153,480 Computer and Math Professionals2,825,870 Paralegals and Legal Assistants183,550 Diagnostic Support Services168,240 Medical Transcriptionists94,090 Total at Risk Employment14,063,130 Source: Bureau of Labor Statistics Compilation by Ashok D. Bardhan and Cynthia Kroll, Fisher Center for Real Estate and Urban Economics, University of California, Berkeley

4. Occupations at Risk to Outsourcing as Share of Total Employment Source: Bureau of Labor Statistics Compilation by Ashok D. Bardhan and Cynthia Kroll, Fisher Center for Real Estate and Urban Economics, University of California, Berkeley 20% 15% 10% 5% 0%

5. 13 million financial services employees in mature industrial economies 15% migrating offshore (2 million) — 850,000 from U.S. — 730,000 from Europe — 400,000 from Japan Financial Services Outsourcing Source: Deloitte Research

6. U.S. Office Market Implications Reduced short- to medium-term demand Protracted vacancy = no rent increases Development not justified Call center and data processing hubs hurt most Financial centers strong -- but watch the back office functions Government centers least affected Class A- and B buildings will suffer Class A by no means immune