2. Real Estate Fundaments “The Facts of Life”

3. Real Estate Fundamentals The facts of Life

4. UNEMPLOYMENT AND RETAIL SALES

5. NOI forecast to decline 15% peak to trough

6. National Office Direct Class A Asking Rental Rates

7. National Office CBD & Non-CBD Overall Absorption 7

8. US Sales Volumes by Property Type 2007 - 2009

9. NCREIF CAP RATES

10. CRE prices down 43% peak to date

11. CRE Debt Maturities and Equity Gap

12. Mirror, mirror on the wall…. Mark Buono, Managing Director, Goldman, Sachs & Co. David Dorros, Managing Director, CB Richard Ellis Michael McDonald, Managing Director, Eastdil Secured, LLC Peter Muoio, Senior Principal, Maximus Advisors Marc Rosenberg, Executive Vice President, Cushman & Wakefield

13. U.S. Market Cycles CBD Office - Major Mkts (2009) 13 GrowthWeakening LA Central Boston, Houston, Washington, D.C. Market Equilibrium Philadelphia RecoveringSlow Growth Dallas Downtown NY, Minneapolis Midtown Manhattan, San Francisco, Seattle,

14. CBRE thinks we might be 80% thru the cycle…