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  • Midwest Region

    Chicago Cincinnati Cleveland Columbus Detroit Indianapolis Kansas City Milwaukee Minneapolis Omaha St. Louis Toledo

  • Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

    MidwestMarketSnapshot

    86

    Midwest Region Space MarketOffice - 1Q-2007

    Inventory SF (000s) Vacancy Rate (%) Net Absorption SF (000s) Asking Rents ($/SF)

    Chicago 218,883 15.6 -195 $17.54 Net

    Cincinnati 33,029 19.4 435 $13.24 Net

    Cleveland 36,474 17.8 -122 $16.33 Gross

    Columbus 28,674 18.4 -332 $11.58 Net

    Detroit 70,391 20.8 424 $18.80 Gross

    Indianapolis 30,071 16.6 -202 $17.20 Gross

    Kansas City 45,843 17.1 117 $16.52 Gross

    Minneapolis 65,113 15.4 97 $12.51 Net

    St. Louis 39,397 16.3 -274 $18.26 GrossToledo 14,860 14.6 12 $16.47 Gross

    Industrial - 1Q-2007

    Inventory SF (000s) Availability Rate (%) Net Absorption SF (000s) Asking Rents ($/SF)

    Chicago 967,732 11.3 5,335 $5.08 Net

    Cincinnati 276,428 8.7 -754 $3.97 Net

    Cleveland 319,140 10.1 -1,811 $4.36 Net

    Columbus 238,981 13.9 212 $3.22 Net

    Detroit 457,699 15.8 5,255 $5.42 Net

    Indianapolis 257,483 10.2 -547 $4.40 Gross

    Kansas City 232,989 8.8 778 $3.86 Gross

    Minneapolis 319,530 7.5 1,261 $5.97 Net

    St. Louis 258,668 9.9 -767 $4.94 Net

    Retail - 4Q-2006

    Inventory SF (000s) Availability Rate (%) Net Absorption SF (000s) TWR Rent Index ($/SF)

    Chicago 91,911 11.1 -216 $21.57

    Cincinnati 20,718 13.1 152 $11.74

    Cleveland 14,549 13.6 -60 $18.10

    Columbus 17,302 13.4 -17 $13.36

    Detroit 32,125 13.2 -418 $19.21

    Indianapolis 19,772 14.1 -198 $17.78

    Kansas City 25,902 12.1 -3 $17.74

    Minneapolis 27,153 7.0 136 $20.56

    St. Louis 32,810 11.3 -33 $23.05

    Space Market Data has been provided courtesy of Torto Wheaton Research. Analysis within this report is solely compiled and produced by the Real Estate Research Corporation, and in no way reflects the interpretations, opinions, or conclusions of Torto Wheaton Research.

    CBRE/Torto Wheaton Research is a full-service research and in-vestment advisory firm, special-izing in commercial real estate markets.

    With over 20 years of experience, our industry leading research, market expertise, and strategic partnerships provide clients with tactical advice and strategic di-rection to identify market opportu-nities that enhance performance and manage risk.

    CBRE/TWR is internationally rec-ognized for our solid foundation in economics, accurate forecasts, analytical expertise, and provid-ing clients with unparalleled in-sight into the dynamics of the real estate market that impact perfor-mance.

    Raymond Torto Ph.D., CRE

    William WheatonPh.D.

    Trusted Advice. Proven Performance.

    RERC extends its appreciation to CBRE/Torto Wheaton Research, whichcontributed all of the space market information on this page.

  • 87Investment TrendsQuarterly

    Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.

    MidwestRegionTransactionBreakdown

    Regional Transaction Price Breakdown/TiersMidwest Transaction Breakdown (4/1/06 - 3/31/07)

    Office Industrial Retail Apartment Hotel< $2 MillionVolume (Mil) $392 $798 $846 $766 $37

    Size Weighted Avg. $61 $32 $65 $45,090 $21,362

    Price Weighted Avg. $85 $49 $111 $75,494 $26,781

    Median $64 $37 $61 $50,000 $21,297

    $2 - $5 MillionVolume (Mil) $590 $1,311 $1,265 $615 $197

    Size Weighted Avg. $86 $38 $100 $39,138 $31,815 Price Weighted Avg. $123 $58 $195 $56,364 $40,044

    Median $106 $46 $163 $46,333 $37,168

    > $5 MillionVolume (Mil) $25,584 $5,478 $9,103 $8,056 $3,612

    Size Weighted Avg. $173 $51 $131 $74,166 $126,919

    Price Weighted Avg. $224 $67 $232 $132,446 $243,001

    Median $136 $53 $136 $58,764 $98,026

    All TransactionsVolume (Mil) $26,565 $7,587 $11,213 $9,437 $3,845

    Size Weighted Avg. $165 $45 $118 $66,776 $105,778

    Price Weighted Avg. $219 $64 $218 $122,865 $230,565

    Median $97 $43 $88 $51,538 $64,823

    Capitalization Rates % (All Transactions)Range 5.5 - 10.0 5.2 - 10.8 4.1 - 9.8 3.6 - 9.8 5.6 - 10.3

    Weighted Avg. 6.9 7.6 7.1 6.0 8.3

    Median 7.8 7.5 7.3 7.1 8.8Source: RERC

    CCIM Institute designees and candidates rated the perfor-mance of the Midwest regional economy equal to that of the national economy at 6.1 (on a scale of 1 to 10, with 10 being high). The Midwest economy is expected to perform at its cur-rent level for the next year.

    The Midwest regional commercial real estate market is gen-erally considered strong, although some survey respondents expect demand to slow.

    Also following national trends, the Midwest regions office sector is seeing the highest dollar volume of sales, while the Midwest regions retail sector, with the next highest dollar vol-ume of sales, is seeing less than half of the dollar amount of that seen in the office sector.

    Size-weighted and price-weighted average prices for the five major property sectors in the Midwest region are well below those in the national market, and the weighted average capi-talization rates for the five sectors are higher than those on a national level.

  • OfficePropertySector

    88Investment TrendsQuarterly

    Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.

    $40

    $112

    $184

    $256

    $328

    $400

    Price-Weighted Average PPSF

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    National Price-Weighted Average PPSF

    RERC Price-Weighted Avg. PPSF - 1Q 2007

    5%

    6%

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    9%Weighted Avg. Cap Rate

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    National Weighted Avg.Cap Rate

    RERC Weighted Avg. Cap Rate - 1Q 2007

    Midwest Office Transactions (4/1/06 - 3/31/07)

    Volume (millions)

    Price-Weighted Average ($/sf)

    Size-Weighted Average ($/sf) Median ($)

    Average Cap Rate (%)

    Chicago $16,183 $263 $219 $145 6.6

    Cincinnati $565 $170 $123 $73 7.0

    Cleveland $711 $141 $111 $95 8.0Columbus $376 $120 $88 $77 8.5

    Detroit $658 $131 $105 $110 7.7Indianapolis $692 $125 $107 $81 7.3Kansas City $1,264 $120 $106 $89 7.1

    Milwaukee $853 $191 $159 $75 7.2

    Minneapolis $2,258 $158 $136 $107 7.5

    Omaha $390 $151 $118 $115 7.4

    St. Louis $1,453 $163 $128 $106

    Toledo $77 $90 $69 $92

    Midwest Total $26,565 $219 $165 $97 6.9

    U.S. Total $214,311 $397 $221 $140 6.2Source: RERC

    $40

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    National Size-Weighted Average PPSF

    RERC Size-Weighted Avg. PPSF - 1Q 2007

    With the majority of office sales in the Midwest region con-sisting of smaller, less expensive properties, both the me-dian and average prices per square foot for regional office space are well below national price levels for first quarter 2007.

    Midwest

  • 89Investment TrendsQuarterly

    Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.

    IndustrialPropertySector

    $30

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    $110

    Price-Weighted Average PPSF

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    National Price-Weighted Average PPSF

    RERC Price-Weighted Avg. PPSF - 1Q 2007

    6%

    7%

    8%

    9%

    10%Weighted Avg. Cap Rate

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    National Weighted Avg.Cap Rate

    RERC Weighted Avg. Cap Rate - 1Q 2007

    Midwest Industrial Transactions (4/1/06 - 3/31/07)

    Volume (millions)

    Price-Weighted Average ($/sf)

    Size-Weighted Average ($/sf) Median ($)

    Average Cap Rate (%)

    Chicago $2,524 $70 $54 $58 6.8

    Cincinnati $297 $62 $47 $39 8.3

    Cleveland $490 $51 $43 $37 7.3Columbus $780 $48 $37 $39 7.8

    Detroit $468 $70 $53 $51 9.8Indianapolis $226 $53 $42 $40 6.6Kansas City $471 $76 $50 $44 7.8

    Milwaukee $215 $48 $35 $40 7.3

    Minneapolis $600 $67 $55 $57 6.9

    Omaha $112 $76 $33 $36

    St. Louis $386 $64 $44 $48

    Toledo $29 $45 $38 $32

    Midwest Total $7,587 $64 $45 $43 7.6

    U.S. Total $52,647 $103 $66 $67 7.0Source: RERC

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    National Size-Weighted Average PPSF

    RERC Size-Weighted Avg. PPSF - 1Q 2007

    Average and median sale prices for industrial space in the Midwest during first quarter 2007 are lower than national levels due to the smaller and less expensive properties sold in the Midwest vs. nationally.

    Midwest

  • 90Investment TrendsQuarterly

    Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.

    RetailPropertySector

    $60

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    $360

    $420 Price-Weighted Average PPSF

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    National Price-Weighted Average PPSF

    RERC Price-Weighted Avg. PPSF - 1Q 2007

    5.0%

    5.7%

    6.4%

    7.1%

    7.8%

    8.5%Weighted Avg. Cap Rate

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    National Weighted Avg.Cap Rate

    RERC Weighted Avg. Cap Rate - 1Q 2007

    Midwest Retail Transactions (4/1/06 - 3/31/07)

    Volume (millions)

    Price-Weighted Average ($/sf)

    Size-Weighted Average ($/sf) Median ($)

    Average Cap Rate (%)

    Chicago $2,942 $221 $163 $153 6.7

    Cincinnati $201 $147 $87 $59 7.0

    Cleveland $856 $153 $121 $84 7.1Columbus $467 $193 $124 $108 8.1

    Detroit $320 $197 $116 $122 7.1Indianapolis $156 $196 $127 $143 7.5Kansas City $764 $271 $116 $71 7.2

    Milwaukee $259 $178 $119 $101 7.1

    Minneapolis $1,959 $405 $206 $90 5.5

    Omaha $165 $142 $80 $63 7.0

    St. Louis $461 $127 $65 $77 6.7

    Toledo $56 $113 $89 $88

    Midwest Total $11,213 $218 $118 $88 7.1

    U.S. Total $78,552 $258 $152 $130 6.6Source: RERC

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    National Size-Weighted Average PPSF

    RERC Size-Weighted Avg. PPSF - 1Q 2007

    The size-weighted and price-weighted average prices per square foot for Midwest retail properties are considerably lower than national average prices.

    Midwest

  • 91Investment TrendsQuarterly

    Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.

    ApartmentPropertySector

    $30,000

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    $120,000

    $150,000

    $180,000

    $210,000

    Price-Weighted Average PPU

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    National Price-Weighted Average PPU

    RERC Price-Weighted Avg. PPU - 1Q 2007

    4%

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    10%Weighted Avg. Cap Rate

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    National Weighted Avg.Cap Rate

    RERC Weighted Avg. Cap Rate - 1Q 2007

    Midwest Apartment Transactions (4/1/06 - 3/31/07)

    Volume (millions)

    Price-Weighted Average ($/unit)

    Size-Weighted Average ($/unit) Median ($)

    Average Cap Rate (%)

    Chicago $3,579 $203,271 $116,164 $80,000 4.8

    Cincinnati $285 $70,183 $49,465 $32,337 7.5

    Cleveland $336 $57,411 $47,615 $36,025 8.9Columbus $303 $49,308 $43,507 $43,370 7.1

    Detroit $778 $66,130 $48,562 $45,839 7.0Indianapolis $398 $72,184 $55,755 $43,990 6.9Kansas City $568 $79,306 $60,122 $38,906 7.1

    Milwaukee $195 $116,760 $73,418 $46,389 5.3

    Minneapolis $793 $97,489 $89,980 $80,000 5.2

    Omaha $87 $90,451 $44,612 $31,316

    St. Louis $426 $66,542 $50,070 $39,926 6.6

    Toledo $259 $78,529 $51,617 $30,990 9.0

    Midwest Total $9,437 $122,865 $66,776 $51,538 6.0

    U.S. Total $111,729 $191,546 $102,090 $86,864 5.1Source: RERC

    $30,000

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    National Size-Weighted Average PPU

    RERC Size-Weighted Avg. PPU - 1Q 2007

    Like many of the other property types within the region, the average sale prices of apartments in the Midwest region are well below those of the nation. The weighted average capitalization rate is 6.0 percent, 90 basis points higher than the national rate.

    Midwest

  • 92Investment TrendsQuarterly

    Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.

    HotelPropertySector

    $30,000

    $160,000

    $290,000

    $420,000

    $550,000

    $680,000

    $810,000Price-Weighted Average PPU

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    National Price-Weighted Average PPU

    RERC Price-Weighted Avg. PPU - 1Q 2007

    7.5%

    8.0%

    8.5%

    9.0%

    9.5%Weighted Avg. Cap Rate

    Kansas CityIndianapolisDetroitChicago

    National Weighted Avg.Cap Rate

    RERC Weighted Avg. Cap Rate - 1Q 2007

    Midwest Hotel Transactions (4/1/06 - 3/31/07)

    Volume (millions)

    Price-Weighted Average ($/unit)

    Size-Weighted Average ($/unit) Median ($)

    Average Cap Rate (%)

    Chicago $2,192 $206,515 $139,414 $124,627 8.2

    Cincinnati $4

    Cleveland $20 $75,726 $59,242 $65,000 Columbus $68 $58,857 $52,753 $54,545

    Detroit $168 $95,933 $68,785 $54,443 8.4Indianapolis $172 $126,275 $115,599 $125,990 9.2Kansas City $54 $60,931 $49,798 $51,642 9.1

    Milwaukee $13

    Minneapolis $212 $106,697 $80,845 $60,185

    Omaha $58

    St. Louis $372 $779,622 $194,483 $51,511

    Toledo $8

    Midwest Total $3,845 $230,565 $105,778 $64,823 8.3

    U.S. Total $39,418 $341,880 $156,938 $78,123 8.2Source: RERC

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    National Size-Weighted Average PPU

    RERC Size-Weighted Avg. PPU - 1Q 2007

    Although both the size-weighted and price-weighted av-erage prices per unit for hotel properties in the Midwest region are well below those on a national level, the median price for the region is much closer to the national median, but still significantly less. The average capitalization rate for hotel properties in the Midwest region is only 10 basis points higher than the national rate.

    Midwest

  • Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

    Chicago

    93

    Demographics & EconomicsPopulation Unemployment Rate (March 2007)

    Chicago MSA 9.7 million Chicago 4.4%

    Chicago Growth1 1.24% Illinois 4.5%

    National Growth1 1.30% National 4.3%

    Household Income & Value

    Per Capita Income $38,842 2006 Households 3.5 million

    3-year Job Growth2 0.20% Household Growth1 1.17%

    Net Migration (2005) -28,800 Median Home Price $260,800

    Major Employers

    Abbott Laboratories

    U.S. Postal Service

    University of Chicago

    Johnston R Bowman Health Center

    Cook County HospitalSources: Bureau of Labor Statistics May 14, 2007 report, Chicago Chamber of Commerce, NAR, STDB Online. "Home Price Analysis Report for Chicago Region July 2006" 2006 NATIONAL ASSOCIATION OF REAL-TORS. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (elec-tronic media included) is prohibited without written permission. 1Projected annual growth over 5 years (2006-2011). 2Total cumulative job creation of last 3 years.

    Noteworthy TransactionsSale Date Sale Price SF/Units $ Per SF/Unit

    Office

    10 & 30 S. Wacker Feb. 07 $647,322,977 2,000,000 $324

    161 N. Clark St. Feb. 07 $327,066,407 1,010,520 $324

    Industrial

    619 S. La Salle St. Jan. 07 $10,000,000 105,000 $95

    Retail

    21 E. Huron St. Feb. 07 $8,200,000 10,500 $781

    Apartment

    Presidential Towers Mar. 07 $470,000,000 2,346 $200,341

    540 N. State St. Jan. 07 $265,000,000 481 $550,936

    Hotel

    Radisson Hotel Jan. 07 $95,000,000 350 $271,429

    Silversmith Hotel Mar. 07 $112,000,000 143 $783,217Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.

    Market Construction/Redevelopment Activity

    Property Type

    New(N)/ Refurbished(R)

    Total SF/Units

    Estimated Delivery

    159 th St. and Farrell Rd. Retail N 125,520 2007

    1901 S. Meyers Rd. Industrial N 217,000 2007

    Roosevelt and Canal Retail N 310,000 2007

    Butterfield and Meyers Rd. Retail N 185,000 2007

    111 West Illinios St. Office N 230,000 2007Sources: CBRE, RE Business

    Chicago

    3%

    4%

    5%

    6%

    7%

    ChicagoNational

    2006200520042003200220012000

    7,000

    8,000

    9,000

    10,000

    11,000Population (thousands)

    2011 proj.2006 est.20001990

    Chicago Population Growth

    Chicago Unemployment Rate

    Source: Bureau of Labor Statistics

    Source: STDB Online

  • Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

    Chicago

    94

    4%

    5%

    6%

    7%

    8%

    9%ChicagoMidwestNational

    HotelApartmentRetailIndustrialOffice

    Chicago Transaction Breakdown (4/1/06 - 3/31/07)Office Industrial Retail Apartment Hotel

    < $5 MillionVolume (Mil) $174 $605 $460 $525 $33

    Size-Weighted Avg. $91 $48 $125 $79,973 $31,590

    Price-Weighted Avg. $124 $66 $193 $104,758 $38,850

    Median $97 $57 $128 $79,833 $42,033

    > $5 MillionVolume (Mil) $16,009 $1,919 $2,482 $3,054 $2,159

    Size-Weighted Avg. $222 $56 $173 $125,962 $147,178

    Price-Weighted Avg. $264 $72 $226 $220,204 $209,106

    Median $161 $60 $189 $83,016 $124,627 All TransactionsVolume (Mil) $16,183 $2,524 $2,942 $3,579 $2,192

    Size-Weighted Avg. $219 $54 $163 $116,164 $139,414

    Price-Weighted Avg. $263 $70 $221 $203,271 $206,515

    Median $145 $58 $153 $80,000 $124,627

    Capitalization Rates % (All Transactions)Weighted Average 6.6 6.8 6.7 4.8 8.2

    Median 7.2 7.0 6.9 6.2 8.7Source: RERC

    RERC Weighted Average Cap Rates - 1Q 2007$0

    $90

    $180

    $270

    $360

    $450ChicagoMidwestNational

    RetailIndustrialOffice

    RERC Price-Weighted Average Price Per SF/Unit - 1Q 2007

    $50,000

    $100,000

    $150,000

    $200,000

    $250,000

    $300,000

    $350,000ChicagoMidwestNational

    HotelApartment

    RERCs Take on the Market

    The Chicago area economy earned a 6.0 performance rating on a scale of 1 to 10, with 10 being high. Survey respondents expect the performance of the economy to remain fairly stable over the next year. Job growth was lower for the Chicago area than na-tionally, and population growth is ex-pected to be comparable to that of the nation.

    Prices for commercial property among all sectors in the Chicago area are generally lower than national aver-ages, but mostly higher than regional averages. Chicago area capitalization rates are lower when compared to Midwest regional rates, but are mixed when compared to national rates.

    With 3-year job growth lower than the national rate, the area economy may be slowing. Since property price aver-ages are already near national levels, investment opportunities are not as plentiful in the Chicago commercial real estate market, but properties should hold their value.

    Changes from Previous QuarterOffice Industrial

    Vacancy Inventory Expected 1-Year Rents

    Asking Rents Data compiled from various sources, including RERC, Torto Wheaton Research, Grubb & Ellis, CBRE, and Marcus & Millichap.

  • Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

    Cincinnati

    95

    Demographics & EconomicsPopulation Unemployment Rate (March 2007)

    Cincinnati MSA 2.1 million Cincinnati 4.8%

    Cincinnati Growth1 0.87% Ohio 5.5%

    National Growth1 1.30% National 4.3%

    Household Income & Value

    Per Capita Income $35,915 2006 Households 825,000

    3-year Job Growth2 2.60% Household Growth1 0.96%

    Net Migration (2005) 1,800 Median Home Price $145,100

    Major Employers

    Procter & Gamble Co.

    University of Cincinnati

    GE Aviation

    Valentine Research, Inc.

    RJS Sales & MarketingSources: Bureau of Labor Statistics May 14, 2007 report, Career Info Net, NAR, STDB Online. "Home Price Analysis Report for Cincinnati Region July 2006" 2006 NATIONAL ASSOCIATION OF REALTORS. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission. 1Projected annual growth over 5 years (2006-2011). 2Total cumulative job creation of last 3 years.

    Noteworthy TransactionsSale Date Sale Price SF/Units $ Per SF/Unit

    Office

    2368 Victory Parkway Jan. 07 $2,270,000 48,000 $47

    One Northlake Place Feb. 07 $17,500,000 176,900 $99

    Industrial

    10590 Hamilton Ave. Feb. 07 $9,600,000 247,088 $39

    1301 Glendale Milford Rd. Mar. 07 $5,760,200 149,600 $39

    Retail

    9930 Colerain Ave. Mar. 07 $4,840,000 58,360 $83

    9470 Colerain Ave. Jan. 07 $12,275,000 75,307 $163

    Apartment

    Alms Hill Feb. 07 $5,500,000 198 $27,778

    The Commons Feb. 07 $19,200,000 288 $66,667Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.

    Market Construction/Redevelopment Activity

    Property Type

    New(N)/ Refurbished(R)

    Total SF/Units

    Estimated Delivery

    3500 Langley Dr. Industrial N 737,200 2007

    Mulhauser and International Blvd. Industrial R 114,800 2007

    4900 Montgomery Rd. Office N 105,000 2007

    Landins of Blue Ash II Office N 175,000 2007Sources: CBRE, RE Business

    Cincinnati

    3%

    4%

    5%

    6%

    7%

    CincinnatiNational

    2006200520042003200220012000

    1,800

    1,900

    2,000

    2,100

    2,200

    2,300

    2,400Population (thousands)

    2011 proj.2006 est.20001990

    Cincinnati Population Growth

    Cincinnati Unemployment Rate

    Source: Bureau of Labor Statistics

    Source: STDB Online

  • Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

    Cincinnati

    96

    4%

    5%

    6%

    7%

    8%

    9%CincinnatiMidwestNational

    ApartmentRetailIndustrialOffice

    Cincinnati Transaction Breakdown (4/1/06 - 3/31/07)Office Industrial Retail Apartment Hotel

    < $5 MillionVolume (Mil) $28 $56 $75 $64 $4

    Size-Weighted Avg. $63 $32 $56 $30,826

    Price-Weighted Avg. $79 $42 $96 $36,355

    Median $64 $35 $47 $30,000

    > $5 MillionVolume (Mil) $537 $241 $126 $221

    Size-Weighted Avg. $129 $52 $130 $60,054

    Price-Weighted Avg. $174 $67 $177 $80,047

    Median $99 $55 $164 $49,638 All TransactionsVolume (Mil) $565 $297 $201 $285 $4

    Size-Weighted Avg. $123 $47 $87 $49,465

    Price-Weighted Avg. $170 $62 $147 $70,183

    Median $73 $39 $59 $32,337

    Capitalization Rates % (All Transactions)Weighted Average 7.0 8.3 7.0 7.5

    Median 7.5 8.3 7.0 6.9 Source: RERC

    RERC Weighted Average Cap Rates - 1Q 2007$0

    $90

    $180

    $270

    $360

    $450CincinnatiMidwestNational

    RetailIndustrialOffice

    RERC Price-Weighted Average Price Per SF/Unit - 1Q 2007

    $50,000

    $90,000

    $130,000

    $170,000

    $210,000

    $250,000CincinnatiMidwestNational

    Apartment

    RERCs Take on the Market

    The Cincinnati area economy earned a 6.0 performance rating on a scale of 1 to 10, with 10 being high. Survey respondents expect the economy, as well as the commercial real estate market, to improve during the next year.

    Prices for commercial property among all sectors in the area are generally lower than regional and national averages. Cincinnati area capitalization rates are higher than national averages, but mixed when compared to the Midwest regional rates.

    With 3-year job growth in the area higher than the national rate and property prices lower than national averages, investors may find some bargains, especially in the office and retail sectors.

    Changes from Previous QuarterOffice Industrial

    Vacancy Inventory Expected 1-Year Rents

    Asking Rents = =Data compiled from various sources, including RERC, Torto Wheaton Research, Grubb & Ellis, CBRE, and Marcus & Millichap.

  • Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

    Cleveland

    97

    Demographics & EconomicsPopulation Unemployment Rate (March 2007)

    Cleveland MSA 2.2 million Cleveland 5.6%

    Cleveland Growth1 0.10% Ohio 5.5%

    National Growth1 1.30% National 4.3%

    Household Income & Value

    Per Capita Income $35,806 2006 Households 864,000

    3-year Job Growth2 -1.10% Household Growth1 0.20%

    Net Migration (2005) -12,800 Median Home Price $140,000

    Major Employers

    Progressive Corp.

    Cleveland Clinic Foundation

    University Hospital of Cleveland

    Cleveland City Hall

    Key BankSources: Bureau of Labor Statistics May 14, 2007 report, Career Info Net, NAR, STDB Online. "Home Price Analysis Report for Cleveland Region July 2006" 2006 NATIONAL ASSOCIATION OF REALTORS. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission. 1Projected annual growth over 5 years (2006-2011). 2Total cumulative job creation of last 3 years.

    Noteworthy TransactionsSale Date Sale Price SF/Units $ Per SF/Unit

    Office

    Rose Building Mar. 07 $79,179,078 592,000 $134

    East Side Package Mar. 07 $32,984,720 321,257 $103

    Industrial

    4582 Willow Pkwy. Feb. 07 $1,075,000 37,698 $29

    6230 Cochran Rd. Mar. 07 $4,500,000 100,300 $45

    Retail

    158-218 Euclid Ave. Jan. 07 $11,000,000 129,124 $85

    13217 Superior Ave. Mar. 07 $3,350,000 25,412 $132

    Apartment

    2722 Mayfield Rd. Mar. 07 $2,986,857 63 $47,410Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.

    Cleveland

    3%

    4%

    5%

    6%

    7%

    ClevelandNational

    2006200520042003200220012000

    2050

    2100

    2150

    2200Population (thousands)

    2011 proj.2006 est.20001990

    Cleveland Population Growth

    Cleveland Unemployment Rate

    Source: Bureau of Labor Statistics

    Source: STDB Online

  • Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

    Cleveland

    98

    4%

    5%

    6%

    7%

    8%

    9%ClevelandMidwestNational

    ApartmentRetailIndustrialOffice

    Cleveland Transaction Breakdown (4/1/06 - 3/31/07)Office Industrial Retail Apartment Hotel

    < $5 MillionVolume (Mil) $77 $197 $152 $61 $10

    Size-Weighted Avg. $75 $34 $97 $34,993

    Price-Weighted Avg. $123 $44 $148 $45,945

    Median $70 $35 $73 $33,750

    > $5 MillionVolume (Mil) $634 $293 $703 $275 $10

    Size-Weighted Avg. $118 $51 $128 $51,769

    Price-Weighted Avg. $143 $56 $154 $59,961

    Median $125 $52 $108 $48,181 All TransactionsVolume (Mil) $711 $490 $856 $336 $20

    Size-Weighted Avg. $111 $43 $121 $47,615 $59,242

    Price-Weighted Avg. $141 $51 $153 $57,411 $75,726

    Median $95 $37 $84 $36,025 $65,000

    Capitalization Rates % (All Transactions)Weighted Average 8.0 7.3 7.1 8.9

    Median 8.2 7.1 7.5 8.7 Source: RERC

    RERC Weighted Average Cap Rates - 1Q 2007$0

    $90

    $180

    $270

    $360

    $450ClevelandMidwestNational

    RetailIndustrialOffice

    RERC Price-Weighted Average Price Per SF/Unit - 1Q 2007

    $0

    $50,000

    $100,000

    $150,000

    $200,000

    $250,000

    $300,000

    $350,000ClevelandMidwestNational

    HotelApartment

    RERCs Take on the Market

    Given the areas high unemployment rate, negative job growth, and expected slow population growth, the Cleveland economy is much weaker than the national economy.

    Generally, prices for commercial property in the area are lower than regional and national averages prices. Cleveland area capitalization rates are higher than both Midwest regional and national averages, except for the industrial capitalization rate, which is lower than the regional average.

    Although prices for commercial properties in the Cleveland area are low, the area economy is slow, and commercial real estate performance may suffer as a result.

    Changes from Previous QuarterOffice Industrial

    Vacancy Inventory Expected 1-Year Rents

    Asking Rents =Data compiled from various sources, including RERC, Torto Wheaton Research, Grubb & Ellis, CBRE, and Marcus & Millichap.

  • Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

    Columbus

    99

    Demographics & EconomicsPopulation Unemployment Rate (March 2007)

    Columbus MSA 1.8 million Columbus 4.5%

    Columbus Growth1 1.79% Ohio 5.5%

    National Growth1 1.30% National 4.3%

    Household Income & Value

    Per Capita Income $35,664 2006 Households 707,000

    3-year Job Growth2 0.90% Household Growth1 1.85%

    Net Migration (2005) 5,500 Median Home Price $150,100

    Major Employers

    The Ohio State University

    State of Ohio Department of Corrections

    Chase Home Finance

    Riverside Methodist Hospital

    Defense Supply CenterSources: Bureau of Labor Statistics May 14, 2007 report, Career Info Net, NAR, STDB Online. "Home Price Analysis Report for Columbus Region July 2006" 2006 NATIONAL ASSOCIATION OF REAL-TORS. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission. 1Projected annual growth over 5 years (2006-2011). 2Total cumulative job creation of last 3 years.

    Noteworthy TransactionsSale Date Sale Price SF/Units $ Per SF/Unit

    Office

    7400 W. Campus Blvd. Mar. 07 $22,875,000 324,545 $70

    Polaris Center of Commerce Feb. 07 $15,700,000 202,000 $78

    Industrial

    3357 Southpark Place Jan. 07 $52,404,000 393,021 $133

    4275 Westward Ave. Feb. 07 $1,600,000 26,244 $61

    Retail

    Market at Hillard Feb. 07 $15,022,602 107,544 $140

    3350 Cleveland Ave. Jan. 07 $5,100,000 43,000 $119

    Apartment

    Alkire Glen Mar. 07 $11,400,000 252 $45,238

    Worthington Meadows Mar. 07 $11,400,000 528 $21,591

    Hotel

    Homewood Suites Jan. 07 $5,400,000 99 $54,545Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.

    Market Construction/Redevelopment Activity

    Property Type

    New(N)/ Refurbished(R)

    Total SF/Units

    Estimated Delivery

    4030 East 5th Ave. Retail R 150,000 2007Sources: CBRE, RE Business

    Columbus

    3%

    4%

    5%

    6%

    7%

    Columbus

    National

    2006200520042003200220012000

    1,200

    1,400

    1,600

    1,800

    2,000Population (thousands)

    2011 proj.2006 est.20001990

    Columbus Population Growth

    Columbus Unemployment Rate

    Source: Bureau of Labor Statistics

    Source: STDB Online

  • Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

    Columbus

    100

    4%

    5%

    6%

    7%

    8%

    9%ColumbusMidwestNational

    ApartmentRetailIndustrialOffice

    Columbus Transaction Breakdown (4/1/06 - 3/31/07)Office Industrial Retail Apartment Hotel

    < $5 MillionVolume (Mil) $81 $150 $88 $63 $14

    Size-Weighted Avg. $72 $30 $105 $32,281

    Price-Weighted Avg. $99 $46 $194 $39,077

    Median $70 $35 $77 $37,667

    > $5 MillionVolume (Mil) $295 $630 $380 $239 $54

    Size-Weighted Avg. $93 $39 $130 $47,933 $57,964

    Price-Weighted Avg. $126 $48 $193 $52,025 $62,733

    Median $95 $41 $146 $47,788 $66,014 All TransactionsVolume (Mil) $376 $780 $467 $303 $68

    Size-Weighted Avg. $88 $37 $124 $43,507 $52,753

    Price-Weighted Avg. $120 $48 $193 $49,308 $58,857

    Median $77 $39 $108 $43,370 $54,545

    Capitalization Rates % (All Transactions)Weighted Average 8.5 7.8 8.1 7.1

    Median 8.4 8.0 7.8 7.2 Source: RERC

    RERC Weighted Average Cap Rates - 1Q 2007$0

    $90

    $180

    $270

    $360

    $450ColumbusMidwestNational

    RetailIndustrialOffice

    RERC Price-Weighted Average Price Per SF/Unit - 1Q 2007

    $0

    $50,000

    $100,000

    $150,000

    $200,000

    $250,000

    $300,000

    $350,000ColumbusMidwestNational

    HotelApartment

    RERCs Take on the Market

    CCIM designees and candidates rated the Columbus area economy at 4.0 on a scale of 1 to 10, with 10 being high. Survey respondents expect the economy to remain fairly stable over the coming year. With recent positive job growth and positive population growth expected, look for the Columbus economy to show some improve-ment over the long term.

    In general, prices for all commer-cial property sectors in the area are lower than regional and na-tional averages, and Columbus area capitalization rates are high-er than both regional and national averages.

    With relatively low pricing for commercial properties, and im-provements to the local economy expected in the future, watch for opportunities in the Columbus market.

    Changes from Previous QuarterOffice Industrial

    Vacancy Inventory Expected 1-Year Rents

    Asking Rents Data compiled from various sources, including RERC, Torto Wheaton Research, Grubb & Ellis, CBRE, and Marcus & Millichap.

  • Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

    Detroit

    101

    Demographics & EconomicsPopulation Unemployment Rate (March 2007)

    Detroit MSA 4.6 million Detroit 6.9%

    Detroit Growth1 0.40% Michigan 7.2%

    National Growth1 1.30% National 4.3%

    Household Income & Value

    Per Capita Income $38,299 2006 Households 1.8 million

    3-year Job Growth2 -2.30% Household Growth1 0.51%

    Net Migration (2005) -25,300 Median Home Price $162,100

    Major Employers

    General Motors Corp.

    Ford Motor Corp.

    Daimler Chrysler Corp.

    Visteon Corp.

    SBC CommunicationsSources: Bureau of Labor Statistics May 14, 2007 report, Detroit Chamber of Commerce, NAR, STDB Online. "Home Price Analysis Report for Detroit Region July 2006" 2006 NATIONAL ASSOCIATION OF REAL-TORS. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission. 1Projected annual growth over 5 years (2006-2011). 2Total cumulative job creation of last 3 years.

    Noteworthy TransactionsSale Date Sale Price SF/Units $ Per SF/Unit

    Office

    Galleria Office Centre Feb. 07 $100,500,000 1,003,712 $100

    Oakland Commons Jan. 07 $28,250,000 316,634 $89

    Industrial

    West Technology Park Feb. 07 $19,975,000 282,450 $71

    Technology Park Feb. 07 $21,000,000 224,110 $94

    Retail

    Woodhaven Village Mar. 07 $14,000,000 94,627 $148

    Brownstone Shopping Centre Feb. 07 $15,250,000 98,335 $155

    Apartment

    Peninsular Place Feb. 07 $25,362,162 184 $137,838

    Hotel

    Marriott Courtyard Feb. 07 $9,137,868 102 $89,587

    Holiday Inn Gateway Feb. 07 $15,319,367 171 $89,587Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.

    Market Construction/Redevelopment Activity

    Property Type

    New(N)/ Refurbished(R)

    Total SF/Units

    Estimated Delivery

    5440 Corporate Dr. Office N 21,000 2007

    Haggerty Corridor Corporate Office Park

    Office N 150,000 2007

    Sources: CBRE, RE Business

    Detroit

    3%

    4%

    5%

    6%

    7%

    8%

    DetroitNational

    2006200520042003200220012000

    4,000

    4,200

    4,400

    4,600

    4,800Population (thousands)

    2011 proj.2006 est.20001990

    Detroit Population Growth

    Detroit Unemployment Rate

    Source: Bureau of Labor Statistics

    Source: STDB Online

  • Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

    Detroit

    102

    4.0%

    5.5%

    7.0%

    8.5%

    10.0%DetroitMidwestNational

    HotelApartmentRetailIndustrialOffice

    Detroit Transaction Breakdown (4/1/06 - 3/31/07)Office Industrial Retail Apartment Hotel

    < $5 MillionVolume (Mil) $99 $125 $118 $53 $22

    Size-Weighted Avg. $98 $43 $105 $30,972 $30,875

    Price-Weighted Avg. $113 $60 $206 $38,357 $40,872

    Median $109 $46 $99 $33,196 $28,750

    > $5 MillionVolume (Mil) $559 $343 $202 $725 $146

    Size-Weighted Avg. $106 $58 $124 $50,653 $84,539

    Price-Weighted Avg. $134 $73 $192 $68,149 $104,289

    Median $113 $63 $149 $45,839 $110,132 All TransactionsVolume (Mil) $658 $468 $320 $778 $168

    Size-Weighted Avg. $105 $53 $116 $48,562 $68,785

    Price-Weighted Avg. $131 $70 $197 $66,130 $95,933

    Median $110 $51 $122 $45,839 $54,443

    Capitalization Rates % (All Transactions)Weighted Average 7.7 9.8 7.1 7.0 8.4

    Median 8.3 9.5 7.4 7.2 8.8Source: RERC

    RERC Weighted Average Cap Rates - 1Q 2007$0

    $90

    $180

    $270

    $360

    $450DetroitMidwestNational

    RetailIndustrialOffice

    RERC Price-Weighted Average Price Per SF/Unit - 1Q 2007

    $0

    $50,000

    $100,000

    $150,000

    $200,000

    $250,000

    $300,000

    $350,000DetroitMidwestNational

    HotelApartment

    RERCs Take on the Market

    Although average household in-come is higher in Detroit than most Midwestern cities, the difficulties in the auto industry are taking a toll on employment. The 3-year job growth was negative, and the un-employment rates in the area and in the State of Michigan are well above the national rate.

    Prices for commercial property among all sectors in the area are generally lower than regional and national averages, and capitaliza-tion rates are generally higher than both national and regional rates.

    Although area property prices are low, investors should be wary, as the area economy is expected to remain relatively weak.

    Changes from Previous QuarterOffice Industrial

    Vacancy Inventory Expected 1-Year Rents

    Asking Rents Data compiled from various sources, including RERC, Torto Wheaton Research, Grubb & Ellis, CBRE, and Marcus & Millichap.

  • Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

    Indianapolis

    103

    Demographics & EconomicsPopulation Unemployment Rate (March 2007)

    Indianapolis MSA 1.7 million Indianapolis 4.3

    Indianapolis Growth1 1.75% Indiana 5.0

    National Growth1 1.30% National 4.3

    Household Income & Value

    Per Capita Income $36,853 2006 Households 660,945

    3-year Job Growth2 3.5% Household growth1 1.79%

    Net Migration (2005) 10,600 Median Home Price $123,000

    Major Employers

    Eli Lilly & Co.

    Indiana University

    Clarian Health Partners

    St. Vincent Hospital and Health

    Purdue UniversitySources: Bureau of Labor Statistics May 14, 2007 report, Career Info Net, NAR, STDB Online.Home Price Analysis Report for Indianapolis Region July 2006 2006 NATIONAL ASSOCIATION OF REALTORS. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission. 1 Projected annual growth over 5 years (2006-2011).2Total cumulative job creation of last 3 years.

    Noteworthy TransactionsSale Date Sale Price SF/Units $ Per SF/Unit

    Office

    1630 N Meridian St. Mar. 07 $8,400,000 94,000 $89

    941 North Meridian St. Feb. 07 $3,300,000 99,416 $33

    Industrial

    2513-2515 S Holt Rd. Mar. 07 $6,600,000 139,200 $47

    3333 Massachusetts Ave. Feb. 07 $2,074,800 50,861 $41

    Retail

    College Park Plaza Mar. 07 $7,350,000 28,094 $262

    8231 U.S. 31 South Mar. 07 $1,750,000 7,075 $247

    Apartment

    The Fields Mar. 07 $34,000,000 285 $119,298

    Island Club Mar. 07 $17,900,000 314 $57,006

    Hotel

    Ramada Inn Feb. 07 $10,540,684 131 $80,463Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.

    Market Construction/Redevelopment Activity

    Property Type

    New(N)/Refurbished(R)

    Total SF/Units

    Estimated Delivery

    Plainfield Business Center Building IX Industrial N 480,000 2007

    Plainfield Business Center Building X Industrial N 133,340 2007

    Park 100 Office N 231,343 2007Sources: CBRE, RE Business

    Indianapolis

    2%

    3%

    4%

    5%

    6%

    7%

    IndianapolisNational

    2006200520042003200220012000

    1,000

    1,250

    1,500

    1,750

    2,000Population (thousands)

    2011 proj.2006 est.20001990

    Indianapolis Population Growth

    Indianapolis Unemployment Rate

    Source: Bureau of Labor Statistics

    Source: STDB Online

  • Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

    Indianapolis

    104

    4.0%

    5.5%

    7.0%

    8.5%

    10.0%IndianapolisMidwestNational

    HotelApartmentRetailIndustrialOffice

    Indianapolis Transaction Breakdown (4/1/06 - 3/31/07)Office Industrial Retail Apartment Hotel

    < $5 MillionVolume (Mil) $23 $30 $32 $11 $3

    Size-Weighted Avg. $54 $22 $66 $23,576

    Price-Weighted Avg. $87 $41 $148 $29,815

    Median $67 $34 $78 $29,143

    > $5 MillionVolume (Mil) $669 $195 $124 $386 $170

    Size-Weighted Avg. $111 $48 $168 $58,047 $119,429

    Price-Weighted Avg. $126 $55 $208 $73,409 $127,597

    Median $105 $44 $190 $57,408 $125,990 All TransactionsVolume (Mil) $692 $226 $156 $398 $172

    Size-Weighted Avg. $107 $42 $127 $55,755 $115,599

    Price-Weighted Avg. $125 $53 $196 $72,184 $126,275

    Median $81 $40 $143 $43,990 $125,990

    Capitalization Rates % (All Transactions)Weighted Average 7.3 6.6 7.5 6.9 9.2

    Median 7.3 6.7 7.3 7.2 9.0Source: RERC

    RERC Weighted Average Cap Rates - 1Q 2007$0

    $90

    $180

    $270

    $360

    $450IndianapolisMidwestNational

    RetailIndustrialOffice

    RERC Price-Weighted Average Price Per SF/Unit - 1Q 2007

    $0

    $50,000

    $100,000

    $150,000

    $200,000

    $250,000

    $300,000

    $350,000IndianapolisMidwestNational

    HotelApartment

    RERCs Take on the Market

    The Indianapolis economy is ex-pected to continue growing over the next few years, with 3-year job growth and projected 5-year popu-lation growth well above national averages.

    Prices and capitalization rates for commercial property among all sectors in the area are mixed when compared to national and regional averages.

    Although some property prices are slightly higher than national levels, investors may find some opportu-nities for commercial real estate investment in the Indianapolis area.

    Changes from Previous QuarterOffice Industrial

    Vacancy Inventory Expected 1-Year Rents

    Asking Rents Data compiled from various sources, including RERC, Torto Wheaton Research, Grubb & Ellis, CBRE, and Marcus & Millichap.

  • Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

    Kansas City

    105

    Demographics & EconomicsPopulation Unemployment Rate (March 2007)

    Kansas City MSA 2.0 million Kansas City 4.9%

    Kansas City Growth1 1.07% Missouri 5.0%

    National Growth1 1.30% National 4.3%

    Household Income & Value

    Per Capita Income $36,141 2006 Households 778,000

    3-year Job Growth2 1.80% Household Growth1 1.15%

    Net Migration (2005) 6,500 Median Home Price $155,200

    Major Employers

    Kansas City International Airport

    Attic Salt Greetings, Inc.

    Hallmark Cards, Inc.

    St. Lukes Hospital

    U.S. Health & Human ServicesSources: Bureau of Labor Statistics May 14, 2007 report, Career Info Net, NAR, STDB Online. "Home Price Analysis Report for Kansas City Region July 2006" 2006 NATIONAL ASSOCIATION OF REALTORS. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission. 1Projected annual growth over 5 years (2006-2011). 2Total cumulative job creation of last 3 years.

    Noteworthy TransactionsSale Date Sale Price SF/Units $ Per SF/Unit

    Office

    120 W. 12th St Mar. 07 $15,000,000 441,506 $34

    216 W. 3rd St. Feb. 07 $4,000,000 18,450 $217

    Industrial

    2117 Broadway St. Mar. 07 $28,728,000 179,800 $160

    4011 N. Norfleet Rd. Mar. 07 $37,300,000 702,000 $53

    Retail

    8400 Ward Pkwy. Mar. 07 $51,870,000 222,554 $233

    Regency North Whole Foods Mar. 07 $16,250,000 74,059 $219

    Apartment

    Quail Run Feb. 07 $58,974,359 690 $85,470

    309 Delaware Jan. 07 $12,000,000 104 $115,385Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.

    Kansas City

    3%

    4%

    5%

    6%

    7%

    Kansas CityNational

    2006200520042003200220012000

    1,400

    1,600

    1,800

    2,000

    2,200Population (thousands)

    2011 proj.2006 est.20001990

    Kansas City Population Growth

    Kansas City Unemployment Rate

    Source: Bureau of Labor Statistics

    Source: STDB Online

  • Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

    Kansas City

    106

    4.0%

    5.5%

    7.0%

    8.5%

    10.0%Kansas CityMidwestNational

    HotelApartmentRetailIndustrialOffice

    Kansas City Transaction Breakdown (4/1/06 - 3/31/07)Office Industrial Retail Apartment Hotel

    < $5 MillionVolume (Mil) $45 $76 $163 $75 $6

    Size-Weighted Avg. $92 $35 $89 $32,435

    Price-Weighted Avg. $129 $75 $184 $44,798

    Median $89 $43 $61 $34,938

    > $5 MillionVolume (Mil) $1,219 $395 $602 $493 $48

    Size-Weighted Avg. $107 $55 $127 $69,093 $54,627

    Price-Weighted Avg. $120 $77 $294 $84,555 $64,714

    Median $90 $52 $122 $66,412 $72,529 All TransactionsVolume (Mil) $1,264 $471 $764 $568 $54

    Size-Weighted Avg. $106 $50 $116 $60,122 $49,798

    Price-Weighted Avg. $120 $76 $271 $79,306 $60,931

    Median $89 $44 $71 $38,906 $51,642

    Capitalization Rates % (All Transactions)Weighted Average 7.1 7.8 7.2 7.1 9.1

    Median 7.6 8.0 7.6 7.1 8.8Source: RERC

    RERC Weighted Average Cap Rates - 1Q 2007$0

    $90

    $180

    $270

    $360

    $450Kansas CityMidwestNational

    RetailIndustrialOffice

    RERC Price-Weighted Average Price Per SF/Unit - 1Q 2007

    $0

    $100,000

    $200,000

    $300,000

    $400,000Kansas CityMidwestNational

    HotelApartment

    RERCs Take on the Market

    Although unemployment is slightly higher than nationally, the Kansas City economy, along with popula-tion growth, is expected to improve during the next few years.

    Prices for commercial property among all sectors in the Kansas City area are mostly lower than regional and national averages, and the areas capitalization rates are generally higher than the cor-responding regional and national averages.

    Although job growth was slightly lower than the national rate, prop-erty prices also are lower than na-tional and regional levels, provid-ing some opportunity for bargains in the Kansas City area commer-cial real estate market.

    Changes from Previous QuarterOffice Industrial

    Vacancy Inventory Expected 1-Year Rents

    Asking Rents Data compiled from various sources, including RERC, Torto Wheaton Research, Grubb & Ellis, CBRE, and Marcus & Millichap.

  • Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

    Milwaukee

    107

    Demographics & EconomicsPopulation Unemployment Rate (March 2007)

    Milwaukee MSA 1.5 million Milwaukee 5.2%

    Milwaukee Growth1 0.46% Wisconsin 5.6%

    National Growth1 1.30% National 4.3%

    Household Income & Value

    Per Capita Income $38,130 2006 Households 610,000

    3-year Job Growth2 -0.50% Household Growth1 0.60%

    Net Migration (2005) -9,300 Median Home Price $212,600

    Major Employers

    Aurora Health Care

    Wheaton Franciscan Healthcare

    Marshall & Ilsley Corp.

    AT&T Wisconsin

    Columbia-St.Mary'sSources: Bureau of Labor Statistics May 14, 2007 report, Metropolitan Milwaukee Association of Commerce, NAR, STDB Online. "Home Price Analysis Report for Milwaukee Region July 2006" 2006 NATIONAL ASSO-CIATION OF REALTORS. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission. 1Projected annual growth over 5 years (2006-2011). 2Total cumulative job creation of last 3 years.

    Noteworthy TransactionsSale Date Sale Price SF/Units $ Per SF/Unit

    Office

    Riverwood Corporate Center I & II Feb. 07 $31,000,000 172,000 $180

    Industrial

    12000 W. Carmen Ave. Feb. 07 $1,045,000 26,800 $39

    Retail

    Pick N Save Supermarket Mar. 07 $7,300,000 61,700 $118

    1650-1680 N. Farwell Ave. Feb. 07 $3,823,400 16,204 $236

    Apartment

    Quail Hollow Jan. 07 $5,600,000 104 $53,846

    Lake Bluff at East Pointe Jan. 07 $27,500,000 110 $250,000

    Hotel

    Holiday Inn Express Feb. 07 $10,840,020 121 $89,587Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.

    Market Construction/Redevelopment Activity

    Property Type

    New(N)/ Refurbished(R)

    Total SF/Units

    Estimated Delivery

    Tradeswinds Business Center Office N 200,000 2007

    One Erdman Place Office N 132,000 2007Sources: CBRE, RE Business

    Milwaukee

    3%

    4%

    5%

    6%

    7%

    Milwaukee

    National

    2006200520042003200220012000

    1,400

    1,450

    1,500

    1,550

    1,600Population (thousands)

    2011 proj.2006 est.20001990

    Milwaukee Population Growth

    Milwaukee Unemployment Rate

    Source: Bureau of Labor Statistics

    Source: STDB Online

  • Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

    Milwaukee

    108

    4.0%

    5.5%

    7.0%

    8.5%MilwaukeeMidwestNational

    ApartmentRetailIndustrialOffice

    Milwaukee Transaction Breakdown (4/1/06 - 3/31/07)Office Industrial Retail Apartment Hotel

    < $5 MillionVolume (Mil) $52 $61 $80 $66 $4

    Size-Weighted Avg. $64 $22 $94 $47,291

    Price-Weighted Avg. $73 $41 $158 $54,321

    Median $54 $38 $93 $44,688

    > $5 MillionVolume (Mil) $801 $154 $179 $130 $10

    Size-Weighted Avg. $176 $47 $136 $101,887

    Price-Weighted Avg. $199 $51 $186 $148,339

    Median $159 $49 $118 $70,126 All TransactionsVolume (Mil) $853 $215 $259 $195 $13

    Size-Weighted Avg. $159 $35 $119 $73,418

    Price-Weighted Avg. $191 $48 $178 $116,760

    Median $75 $40 $101 $46,389

    Capitalization Rates % (All Transactions)Weighted Average 7.2 7.3 7.1 5.3

    Median 7.0 7.3 7.3 5.3 Source: RERC

    RERC Weighted Average Cap Rates - 1Q 2007$0

    $90

    $180

    $270

    $360

    $450MilwaukeeMidwestNational

    RetailIndustrialOffice

    RERC Price-Weighted Average Price Per SF/Unit - 1Q 2007

    $0

    $50,000

    $100,000

    $150,000

    $200,000

    $250,000MilwaukeeMidwestNational

    Apartment

    RERCs Take on the Market

    The Milwaukee area economy earned a 6.0 performance rating on a scale of 1 to 10, with 10 being high. Survey respondents expect the economy to continue to per-form at a similar level during the coming year.

    Prices for commercial properties in the Milwaukee area are gener-ally lower than both the Midwest regional and national average prices, while capitalization rates are mixed.

    Although commercial real estate in the Milwaukee area may appear to be a bargain, the area economy is expected to slow and may de-crease investment potential.

  • Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

    Minneapolis

    109

    Demographics & EconomicsPopulation Unemployment Rate (March 2007)

    Minneapolis MSA 3.3 million Minneapolis 4.4%

    Minneapolis Growth1 1.64% Minnesota 4.9%

    National Growth1 1.30% National 4.3%

    Household Income & Value

    Per Capita Income $42,756 2006 Households 1.3 million

    3-year Job Growth2 2.00% Household Growth1 1.69%

    Net Migration (2005) 3,000 Median Home Price $230,000

    Major Employers

    University of Minnesota

    Fairview University Medical Center

    Blue Cross/Blue Shield

    UPS

    3M CompanySources: Bureau of Labor Statistics May 14, 2007 report, Career Info Net, NAR, STDB Online. "Home Price Analysis Report for Minneapolis Region July 2006" 2006 NATIONAL ASSOCIATION OF REALTORS. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission. 1Projected annual growth over 5 years (2006-2011). 2Total cumulative job creation of last 3 years.

    Noteworthy TransactionsSale Date Sale Price SF/Units $ Per SF/Unit

    Office

    Retek on the Mall Feb. 07 $127,000,000 486,000 $261

    Industrial

    3311 Broadway St. NE Mar. 07 $10,531,000 180,000 $59

    7125-7153 Northland Terrace Feb. 07 $7,600,000 79,958 $95

    Retail

    800 Hennepin Ave. Mar. 07 $8,150,000 103,275 $79

    Oakdale Village Mar. 07 $37,000,000 206,000 $180

    Apartment

    Lemay Lake Jan. 07 $23,000,000 282 $81,560

    Symphony Place Feb. 07 $36,500,000 250 $146,000

    Hotel

    Hampton Inn Feb. 07 $11,377,542 127 $89,587Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.

    Market Construction/Redevelopment Activity

    Property Type

    New(N)/ Refurbished(R)

    Total SF/Units

    Estimated Delivery

    Norman Pointe II Office N 322,000 2007Sources: CBRE, RE Business

    Minneapolis

    2%

    3%

    4%

    5%

    6%

    7%

    MinneapolisNational

    2006200520042003200220012000

    2,400

    2,700

    3,000

    3,300

    3,600Population (thousands)

    2011 proj.2006 est.20001990

    Minneapolis Population Growth

    Minneapolis Unemployment Rate

    Source: Bureau of Labor Statistics

    Source: STDB Online

  • Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

    Minneapolis

    110

    4.0%

    5.5%

    7.0%

    8.5%MinneapolisMidwestNational

    ApartmentRetailIndustrialOffice

    Minneapolis Transaction Breakdown (4/1/06 - 3/31/07)Office Industrial Retail Apartment Hotel

    < $5 MillionVolume (Mil) $61 $194 $150 $55 $21

    Size-Weighted Avg. $95 $43 $85 $62,320 $37,568

    Price-Weighted Avg. $117 $57 $129 $77,582 $44,533

    Median $113 $49 $82 $62,018 $41,417

    > $5 MillionVolume (Mil) $2,197 $406 $1,809 $738 $191

    Size-Weighted Avg. $137 $64 $233 $93,082 $92,387

    Price-Weighted Avg. $159 $71 $428 $98,984 $113,439

    Median $97 $70 $155 $94,219 $72,643 All TransactionsVolume (Mil) $2,258 $600 $1,959 $793 $212

    Size-Weighted Avg. $136 $55 $206 $89,980 $80,845

    Price-Weighted Avg. $158 $67 $405 $97,489 $106,697

    Median $107 $57 $90 $80,000 $60,185

    Capitalization Rates % (All Transactions)Weighted Average 7.5 6.9 5.5 5.2

    Median 7.5 7.2 7.1 5.2 Source: RERC

    RERC Weighted Average Cap Rates - 1Q 2007$0

    $90

    $180

    $270

    $360

    $450MinneapolisMidwestNational

    RetailIndustrialOffice

    RERC Price-Weighted Average Price Per SF/Unit - 1Q 2007

    $0

    $50,000

    $100,000

    $150,000

    $200,000

    $250,000

    $300,000

    $350,000MinneapolisMidwestNational

    HotelApartment

    RERCs Take on the Market

    With the highest per capita income and median home prices among the Midwest cities RERC covers in this report, and the unemployment rate in line with the national aver-age, the Minneapolis economy re-mains strong.

    Prices for commercial property in the area are generally higher than averages for the Midwest region, but lower than national averages. Capitalization rates are mixed when compared to average rates for the Midwest and nation.

    The average vacancy rates of commercial properties in the Min-neapolis market are lower than other Midwest metros covered in this report, and prices are lower than national averages, providing good investment potential.

    Changes from Previous QuarterOffice Industrial

    Vacancy =Inventory Expected 1-Year Rents

    Asking Rents Data compiled from various sources, including RERC, Torto Wheaton Research, Grubb & Ellis, CBRE, and Marcus & Millichap.

  • Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

    Omaha

    111

    Demographics & EconomicsPopulation Unemployment Rate (March 2007)

    Omaha MSA 834,000 Omaha 3.2%

    Omaha Growth1 1.36% Nebraska 2.9%

    National Growth1 1.30% National 4.3%

    Household Income & Value

    Per Capita Income $37,750 2006 Households 322,000

    3-year Job Growth2 2.70% Household Growth1 1.43%

    Net Migration (2005) 4,100 Median Home Price $136,400

    Major Employers

    Offutt Air Force Base

    Alegent Health

    Nebraska Medical Center

    First National Bank

    Omaha Public SchoolsSources: Bureau of Labor Statistics May 14, 2007 report, Omaha Chamber of Commerce, NAR, STDB Online. "Home Price Analysis Report for Omaha Region July 2006" 2006 NATIONAL ASSOCIATION OF REAL-TORS. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission. 1Projected annual growth over 5 years (2006-2011). 2Total cumulative job creation of last 3 years.

    Noteworthy TransactionsSale Date Sale Price SF/Units $ Per SF/Unit

    Office

    1010 N. 96th St. Feb. 07 $2,950,000 20,400 $145

    3205 N. 90th St. Feb. 07 $1,850,000 19,762 $94

    Industrial

    4433 S. 134th St. Mar. 07 $930,000 25,000 $37

    4445 S. 76th Circle Mar. 07 $905,000 25,070 $36

    Retail

    201 S 72nd St. Feb. 07 $5,602,500 11,315 $495

    Oakview Plaza Shopping Center Mar. 07 $32,600,000 177,000 $184

    Apartment

    6501 Grand Ave. Jan. 07 $4,052,000 18 $225,111Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.

    Omaha

    2%

    3%

    4%

    5%

    6%

    7%

    OmahaNational

    2006200520042003200220012000

    600

    700

    800

    900Population (thousands)

    2011 proj.2006 est.20001990

    Omaha Population Growth

    Omaha Unemployment Rate

    Source: Bureau of Labor Statistics

    Source: STDB Online

  • Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

    Omaha

    112

    4%

    5%

    6%

    7%

    8%OmahaMidwestNational

    RetailOffice

    Omaha Transaction Breakdown (4/1/06 - 3/31/07)Office Industrial Retail Apartment Hotel

    < $5 MillionVolume (Mil) $43 $60 $71 $46

    Size-Weighted Avg. $70 $32 $49 $31,009

    Price-Weighted Avg. $103 $48 $90 $55,471

    Median $94 $37 $50 $30,480

    > $5 MillionVolume (Mil) $346 $52 $94 $41 $58

    Size-Weighted Avg. $129 $35 $156

    Price-Weighted Avg. $157 $109 $182

    Median $150 $31 $155 All TransactionsVolume (Mil) $390 $112 $165 $87 $58

    Size-Weighted Avg. $118 $33 $80 $44,612

    Price-Weighted Avg. $151 $76 $142 $90,451

    Median $115 $36 $63 $31,316

    Capitalization Rates % (All Transactions)Weighted Average 7.4 7.0

    Median 7.4 7.0 Source: RERC

    RERC Weighted Average Cap Rates - 1Q 2007$0

    $90

    $180

    $270

    $360

    $450 OmahaMidwestNational

    RetailIndustrialOffice

    RERC Price-Weighted Average Price Per SF/Unit - 1Q 2007

    $0

    $50,000

    $100,000

    $150,000

    $200,000

    $250,000OmahaMidwestNational

    Apartment

    RERCs Take on the Market

    Survey respondents rated the Omaha area economy at 5.0 on a scale of 1 to 10, with 10 being high. Expectations are for the economy to perform at a similar level dur-ing the coming year. Population growth for the area is higher than nationally, and job growth was high over the last 3 years.

    Prices for commercial property in the area are generally lower than regional and national averages. Omaha area capitalization rates for the office and retail sectors are generally higher than regional and national average rates.

    With property prices below na-tional and regional levels and the economy growing, watch for bar-gains in the commercial real es-tate market.

    Changes from Previous QuarterOffice Industrial

    Vacancy Expected 1-Year Rents

    Asking Rents Data compiled from various sources, including RERC, Torto Wheaton Research, Grubb & Ellis, CBRE, and Marcus & Millichap.

  • Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

    St. Louis

    113

    Demographics & EconomicsPopulation Unemployment Rate (March 2007)

    St. Louis MSA 2.8 million St. Louis 5.0%

    St. Louis Growth1 0.71% Missouri 5.0%

    National Growth1 1.30% National 4.3%

    Household Income & Value

    Per Capita Income $36,298 2006 Households 1.1 million

    3-year Job Growth2 0.40% Household Growth1 0.77%

    Net Migration (2005) -2,100 Median Home Price $140,700

    Major Employers

    Barnes-Jewish Hospital

    St. Louis University

    U.S. Bank

    U.S. Postal Service

    St. Johns Mercy Health CareSources: Bureau of Labor Statistics May 14, 2007 report, Career Info Net, NAR, STDB Online. "Home Price Analysis Report for St. Louis Region July 2006" 2006 NATIONAL ASSOCIATION OF REAL-TORS. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission. 1Projected annual growth over 5 years (2006-2011). 2Total cumulative job creation of last 3 years.

    Noteworthy TransactionsSale Date Sale Price SF/Units $ Per SF/Unit

    Office

    Equitable Building Feb. 07 $37,500,000 424,000 $88

    Spectrum Jan. 07 $42,190,000 1,017,000 $41

    Industrial

    14500 S Outer Forty Dr. Feb. 07 $6,700,000 95,280 $70

    Retail

    Chesterfield Crossings Feb. 07 $14,450,000 63,000 $229

    Apartment

    Jaccard Feb. 07 $8,000,000 94 $85,106

    1401 Pine St. Feb. 07 $6,750,000 104 $64,904

    Hotel

    Casino Queen Hotel Jan. 07 $200,000,000 157 $1,273,885

    Sheraton Clayton Plaza Feb. 07 $24,843,933 253 $98,197Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.

    Market Construction/Redevelopment Activity

    Property Type

    New(N)/ Refurbished(R)

    Total SF/Units

    Estimated Delivery

    City Place Six Office N 210,000 2007

    Forty West II Office N 114,000 2007

    St. Clair Square Retail N 100,000 2007

    400 Jamestown Mall Rd. Mixed Use R 216,000 2007

    Sources: CBRE, RE Business

    St. Louis

    3%

    4%

    5%

    6%

    7%

    St. LouisNational

    2006200520042003200220012000

    2,500

    2,600

    2,700

    2,800

    2,900

    3,000Population (thousands)

    2011 proj.2006 est.20001990

    St. Louis Population Growth

    St. Louis Unemployment Rate

    Source: Bureau of Labor Statistics

    Source: STDB Online

  • Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

    St. Louis

    114

    4%

    5%

    6%

    7%

    8%St. LouisMidwestNational

    ApartmentRetail

    St. Louis Transaction Breakdown (4/1/06 - 3/31/07)Office Industrial Retail Apartment Hotel

    < $5 MillionVolume (Mil) $53 $124 $87 $62 $11

    Size-Weighted Avg. $58 $40 $61 $32,051 $26,235

    Price-Weighted Avg. $95 $65 $132 $46,084 $33,087

    Median $72 $49 $61 $36,016 $19,551

    > $5 MillionVolume (Mil) $1,400 $262 $374 $364 $361

    Size-Weighted Avg. $134 $47 $66 $55,384 $240,869

    Price-Weighted Avg. $165 $64 $126 $70,033 $802,040

    Median $128 $48 $156 $51,944 $97,944 All TransactionsVolume (Mil) $1,453 $386 $461 $426 $372

    Size-Weighted Avg. $128 $44 $65 $50,070 $194,483

    Price-Weighted Avg. $163 $64 $127 $66,542 $779,622

    Median $106 $48 $77 $39,926 $51,511

    Capitalization Rates % (All Transactions)Weighted Average 6.7 6.6

    Median 7.3 6.6 Source: RERC

    RERC Weighted Average Cap Rates - 1Q 2007$0

    $90

    $180

    $270

    $360

    $450St. LouisMidwestNational

    RetailIndustrialOffice

    RERC Price-Weighted Average Price Per SF/Unit - 1Q 2007

    $0

    $100,000

    $200,000

    $300,000

    $400,000

    $500,000

    $600,000

    $700,000

    $800,000St. LouisMidwestNational

    HotelApartment

    RERCs Take on the Market

    The St. Louis area economy is continuing to weaken, with mini-mal job growth and low population growth expected over the next few years.

    Prices for commercial property among all sectors in the area are generally lower than national and regional averages, and capitaliza-tion rates for the retail and apart-ment sectors are mixed when compared to national and regional rates.

    Prices for commercial property in the St. Louis area are relatively low. Investors should be cautious, as area economic performance may slow and negatively affect the commercial market.

    Changes from Previous QuarterOffice Industrial

    Vacancy Inventory Expected 1-Year Rents

    Asking Rents Data compiled from various sources, including RERC, Torto Wheaton Research, Grubb & Ellis, CBRE, and Marcus & Millichap.

  • Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

    Toledo

    115

    Demographics & EconomicsPopulation Unemployment Rate (March 2007)

    Toledo MSA 666,000 Toledo 6.7%

    Toledo Growth1 0.10% Ohio 5.5%

    National Growth1 1.30% National 4.3%

    Household Income & Value

    Per Capita Income $31,976 2006 Households 266,000

    3-year Job Growth2 -1.00% Household Growth1 0.26%

    Net Migration (2005) -3,800 Median Home Price $116,200

    Major Employers

    ProMedica Health Systems

    Mercy Health Partners

    Bowling Green State University

    Daimler Chrysler Corp.

    University of ToledoSources: Bureau of Labor Statistics May 14, 2007 report, NAR, STDB Online, Toledo Chamber of Commerce. "Home Price Analysis Report for Toledo Region July 2006" 2006 NATIONAL ASSOCIATION OF REAL-TORS. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission. 1Projected annual growth over 5 years (2006-2011). 2Total cumulative job creation of last 3 years.

    Noteworthy TransactionsSale Date Sale Price SF/Units $ Per SF/Unit

    Office

    Fairwood Medical Office Jan. 07 $1,800,000 26,751 $67

    3737 W Sylvania Ave. Mar. 07 $21,399,751 160,000 $134

    Retail

    5060 Monroe St. Mar. 07 $1,600,000 7,044 $227

    5210 Monroe St. Feb. 07 $6,000,000 44,810 $134

    Apartment

    Olde Towne University Sq. Feb. 07 $31,000,000 224 $138,393

    University Hills Feb. 07 $10,465,000 156 $67,083

    Hotel

    2 Seagate Mar. 07 $7,500,000 212 $35,377Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.

    Toledo

    3%

    4%

    5%

    6%

    7%

    8%

    ToledoNational

    2006200520042003200220012000

    650

    655

    660

    665

    670Population (thousands)

    2011 proj.2006 est.20001990

    Toledo Population Growth

    Toledo Unemployment Rate

    Source: Bureau of Labor Statistics

    Source: STDB Online

  • Copyright 2007 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

    Toledo

    116

    4.0%

    5.5%

    7.0%

    8.5%

    10.0%ToledoMidwestNational

    Apartment

    Toledo Transaction Breakdown (4/1/06 - 3/31/07)Office Industrial Retail Apartment Hotel

    < $5 MillionVolume (Mil) $23 $16 $38 $36

    Size-Weighted Avg. $91 $33 $86 $32,061

    Price-Weighted Avg. $111 $43 $117 $36,261

    Median $92 $31 $87 $30,000

    > $5 MillionVolume (Mil) $54 $13 $18 $223 $8

    Size-Weighted Avg. $57,199

    Price-Weighted Avg. $85,292

    Median $52,481 All TransactionsVolume (Mil) $77 $29 $56 $259 $8

    Size-Weighted Avg. $69 $38 $89 $51,617

    Price-Weighted Avg. $90 $45 $113 $78,529

    Median $92 $32 $88 $30,990

    Capitalization Rates % (All Transactions)Weighted Average 9.0

    Median 8.9 Source: RERC

    RERC Weighted Average Cap Rates - 1Q 2007$0

    $90

    $180

    $270

    $360

    $450ToledoMidwestNational

    RetailIndustrialOffice

    RERC Price-Weighted Average Price Per SF/Unit - 1Q 2007

    $50,000

    $90,000

    $130,000

    $170,000

    $210,000

    $250,000ToledoMidwestNational

    Apartment

    RERCs Take on the Market

    The Toledo area economy is likely to weaken further during the next few years, with recent negative job growth and a higher-than-av-erage unemployment rate.

    Prices for commercial property among all sectors in the area are generally lower than regional and national averages. Capitalization rates for the Toledo apartment market are well above regional and national rates.

    Although prices are generally low for commercial properties in the Toledo area, investors should take note that the area economy is ex-pected to weaken and positive re-turns may be difficult to come by.

    Changes from Previous QuarterOffice

    Vacancy Inventory Asking Rents Data compiled from various sources, including RERC, Torto Wheaton Research, Grubb & Ellis, CBRE, and Marcus & Millichap.