2011

Investment Sales Trends Update

NAIOP Tampa

0

3

6

9

12

15

1Q03

4Q03

3Q04

2Q05

1Q06

4Q06

3Q07

2Q08

1Q09

4Q09

3Q10

2Q11

*

Apartment Industrial Office Retail

To

tal

Tra

nsa

ctio

ns

(00

0s)

* Preliminary FiguresIncludes sales $1M+Sources: Marcus & Millichap Research Services, CoStar Group, Inc., Real Capital Analytics

Commercial Real Estate Transactions by Property Type

0

60

120

180

240

300

Apartment Industrial Office Retail

U.S. Total Transactions Tampa Total Transactions

To

tal

Tra

nsa

ctio

ns

Q2-2009: 50

Q2-2010: 63

Q2-2011: 77

Q2-2009: 4,523

Q2-2010: 5,442

Q2-2011: 5,940

Tampa Commercial Property Price Trends

$0

$20

$40

$60

$80

Apartment

$0

$60

$120

$180

$240

Office Retail Industrial

2000-2008 2009 2010 1H11

Avg

. Pri

ce p

er U

nit

(00

0s)

Avg

. Pri

ce p

er S

q. F

t.-32%

-30%

-29%

-16%

Includes sales $1M+Sources: Marcus & Millichap Research Services, CoStar Group, Inc., Real Capital Analytics

0%

3%

6%

9%

12%

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

*

Commercial Real Estate 10-Year Treasury Rate

U.S. Commercial Real Estate Cap Rate Trends

Average Cap Rates vs. 10-Year Treasury

* As of September 7Sales $1 million and greaterSources: Marcus & Millichap Research Services, CoStar Group, Inc.

Ave

rag

e R

ate

10-Yr Treasury Long-Term Avg.

Cap Rate Long-Term Avg.

430 bps 470 bps500 bps

190 bps600 bps

450 bps

500 bps

$0

$100

$200

$300

$400

1Q20

07

3Q20

07

1Q20

08

3Q20

08

1Q20

09

3Q20

09

1Q20

10

3Q20

10

1Q20

11

2Q20

11

$0

$15

$30

$45

$60Outstanding Distress ResolvedAdditions to Distress

Sources: Marcus & Millichap Research Services, Real Capital Analytics

U.S. Distressed Commercial Property Trends

Ad

ditio

ns to

Distress (B

illion

)Ou

tsta

nd

ing

Dis

tres

s (B

illio

n)