Midwest Region - ccim.comweighted average price was slightly higher in the Midwest region than...

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Transcript of Midwest Region - ccim.comweighted average price was slightly higher in the Midwest region than...

Page 1: Midwest Region - ccim.comweighted average price was slightly higher in the Midwest region than nationally. The weighted average capitaliza-tion rate for industrial properties in the

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

Midwest Region

Page 2: Midwest Region - ccim.comweighted average price was slightly higher in the Midwest region than nationally. The weighted average capitaliza-tion rate for industrial properties in the

94Investment TrendsQuarterly

Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.

MidwestRegionTransactionBreakdown

Regional Transaction Price Breakdown/TiersMidwest Transaction Breakdown (7/1/07 - 6/30/08)

Office Industrial Retail Apartment Hotel< $2 MillionVolume (Mil) $359 $694 $712 $275 $31

Size Weighted Avg. ($ per sf/unit) $69 $38 $70 $30,812 $19,750

Price Weighted Avg. ($ per sf/unit) $96 $55 $109 $42,000 $23,230

Median ($ per sf/unit) $71 $42 $69 $34,286 $19,418

$2 - $5 MillionVolume (Mil) $529 $1,113 $1,145 $464 $208

Size Weighted Avg. ($ per sf/unit) $99 $44 $106 $41,376 $33,272

Price Weighted Avg. ($ per sf/unit) $150 $71 $210 $57,071 $37,082

Median ($ per sf/unit) $116 $55 $172 $45,704 $34,211

> $5 MillionVolume (Mil) $12,000 $4,734 $6,491 $4,995 $3,511

Size Weighted Avg. ($ per sf/unit) $147 $61 $173 $77,423 $154,686

Price Weighted Avg. ($ per sf/unit) $190 $156 $337 $137,581 $233,732

Median ($ per sf/unit) $134 $62 $163 $66,348 $134,318

All TransactionsVolume (Mil) $12,888 $6,540 $8,349 $5,734 $3,751

Size Weighted Avg. ($ per sf/unit) $140 $54 $143 $67,737 $122,812

Price Weighted Avg. ($ per sf/unit) $185 $131 $300 $126,484 $221,055

Median ($ per sf/unit) $102 $48 $99 $44,418 $56,448

Capitalization Rates (All Transactions)Range (%) 4.3 - 9.6 5.4 - 11.7 5.0 - 11.0 4.5 - 10.0 6.8 - 12.0

Weighted Avg. (%) 6.6 8.0 6.2 6.5 7.6

Median (%) 7.4 8.2 7.0 7.1 8.8 Source: RERC.

nCCIM designees and candidates rated the Midwest re-gionaleconomyat4.9onascaleof1to10,with10beinghigh,duringsecondquarter2008.This ratingwas lowerthan the first quarter rating of 5.6, but like the ratings for theotherregionaleconomies,washigherthantheratingforthenationaleconomy.

nThe Midwest region’s size-weighted average prices persquarefoot/unitforallpropertytypeswerelowerthanthenational averages during second quarter 2008. In addi-

tion,theMidwestregionalweighted-averagecapitalizationrates were higher than those for the national market, ex-cept for the retailsector,where the rate for theMidwestregionwas30basispointslower.

nAlthoughthetotaldollarvolumeofcommercialrealestatetransactionsdecreased forallproperty types in theMid-westregionduringsecondquarter2008,thedecreaseinvolumewasnotassevereasthatintheotherregions.

“The best investment opportunities are in

student, affordable, and senior housing.”

– Detroit

“Avoid hotels. Corporate cost cutting will increase

vacancy levels.”– Chicago

“I’d recommend the suburban office

market. The product is underpriced compared to

replacement costs,as suburban office rents

are still low.”– Chicago

“Invest in anything in stable, local markets with

decent job growth.”– Kansas City

Page 3: Midwest Region - ccim.comweighted average price was slightly higher in the Midwest region than nationally. The weighted average capitaliza-tion rate for industrial properties in the

OfficePropertySector

95Investment TrendsQuarterly

Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.

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RERC Weighted Avg. Cap Rate - 2Q 2008

Midwest Office Transactions (7/1/07 - 6/30/08)Volume

(millions)Size-weighted Average ($/sf)

Price-weighted Average ($/sf)

Median($/sf)

Average Cap Rate (%)

Chicago $6,258 $190 $232 $142 6.0

Cincinnati $64 $96 $135 $86 7.0

Cleveland $851 $115 $124 $84 7.7

Columbus $353 $97 $128 $105 8.5

Detroit $1,093 $97 $117 $101 8.4

Indianapolis $150 $84 $95 $82 8.0

Kansas City $461 $150 $183 $119 7.1

Milwaukee $347 $128 $154 $76 7.6

Minneapolis $1,186 $116 $137 $124 7.4

Omaha $61 $68 $107 $56 7.2

St. Louis $1,021 $132 $157 $124 7.7

Toledo $119 $67 $108 $77 –

Midwest Total $12,888 $140 $185 $102 6.6

U.S. Total $109,372 $227 $417 $145 5.6 Source: RERC.

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RERC Size-Weighted Avg. PPSF - 2Q 2008

nAccording to second quarter 2008 survey respondents,the Midwest regional office sector is soft with low rental rates,andthesize-andprice-weightedaveragepricespersquarefootdeclinedfromthepreviousquarter.

nTransaction volume of Midwest regional office properties declinedforthethirdconsecutivequarter.

Midwest

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Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.

IndustrialPropertySector

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Midwest Industrial Transactions (7/1/07 - 6/30/08)Volume

(millions)Size-weighted Average ($/sf)

Price-weighted Average ($/sf)

Median($/sf)

Average Cap Rate (%)

Chicago $2,276 $57 $79 $65 7.6

Cincinnati $198 $46 $59 $42 7.8

Cleveland $348 $45 $60 $43 7.2

Columbus $285 $38 $45 $43 8.9

Detroit $338 $52 $81 $49 8.8

Indianapolis $103 $39 $44 $42 8.1

Kansas City $276 $68 $114 $49 –

Milwaukee $149 $43 $72 $50 7.7

Minneapolis $507 $60 $88 $58 7.9

Omaha $56 $52 $78 $45 –

St. Louis $433 $53 $71 $59 –

Toledo $19 $38 $43 $35 –

Midwest Total $6,540 $54 $131 $48 8.0

U.S. Total $39,252 $71 $129 $73 6.9 Source: RERC.

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RERC Size-Weighted Avg. PPSF - 2Q 2008

nThesecondquarter2008size-weightedaveragepricepersquarefootof industrialspacewaslowerintheMidwestregion than that for the national market, while the price-weightedaveragepricewasslightlyhigherintheMidwestregion than nationally.The weighted average capitaliza-tionrateforindustrialpropertiesintheMidwestregionwas110 basis points higher than that for the national market.

nWhilethesize-weightedaveragepricepersquarefootofindustrialspaceintheMidwestregionwasaboutthesameasthat for thepreviousquarter, theprice-weightedpricepersquarefootincreasedgreatlyinsecondquarter2008.TheweightedaveragecapitalizationrateforMidwestre-gionalindustrialpropertiesincreased30basispointsoverlastquarter.

Midwest

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Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.

RetailPropertySector

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Midwest Retail Transactions (7/1/07 - 6/30/08)Volume

(millions)Size-weighted Average ($/sf)

Price-weighted Average ($/sf)

Median($/sf)

Average Cap Rate (%)

Chicago $4,056 $224 $429 $170 5.6

Cincinnati $269 $133 $178 $87 6.9

Cleveland $276 $97 $128 $75 8.4

Columbus $234 $137 $177 $100 –

Detroit $322 $129 $157 $102 7.8

Indianapolis $81 $76 $111 $70 –

Kansas City $335 $116 $177 $86 –

Milwaukee $157 $119 $190 $73 7.0

Minneapolis $369 $113 $173 $93 6.9

Omaha $70 $52 $130 $88 8.2

St. Louis $684 $180 $205 $119 7.2

Toledo $28 $67 $93 $78 –

Midwest Total $8,349 $143 $300 $99 6.2

U.S. Total $46,283 $153 $278 $130 6.5 Source: RERC.

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RERC Size-Weighted Avg. PPSF - 2Q 2008

nMostCCIMdesigneesandcandidatesstatedthattheretailmarket offered the worst investment opportunities among the commercial property sectors in the Midwest regionbecauseofthesloweconomyandreduceddiscretionaryspending.

nThevolumeofretailpropertytransactionsdeclinedslightlyin the Midwest regional market during second quarter 2008. Thesize-weightedaveragepricepersquarefootdeclined,whiletheprice-weightedaverageincreasedslightly.

Midwest

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ApartmentPropertySector

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Midwest Apartment Transactions (7/1/07 - 6/30/08)Volume

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Average ($/unit)Price-weighted Average ($/unit)

Median($/sf)

Average Cap Rate (%)

Chicago $1,911 $112,746 $159,546 $69,413 5.7

Cincinnati $241 $46,007 $55,931 $27,000 5.5

Cleveland $159 $41,948 $57,939 $38,000 7.7

Columbus $559 $50,469 $59,610 $42,792 6.7

Detroit $355 $49,014 $64,277 $37,797 7.1

Indianapolis $241 $62,033 $73,912 $71,725 7.5

Kansas City $252 $57,949 $73,257 $37,901 7.0

Milwaukee $80 $54,957 $76,878 $49,917 –

Minneapolis $280 $69,003 $83,702 $61,835 6.9

Omaha $133 $64,467 $74,236 $43,025 –

St. Louis $109 $45,387 $57,265 $36,667 –

Toledo $124 $60,580 $69,252 $44,395 7.1

Midwest Total $5,734 $67,737 $126,484 $44,418 6.5

U.S. Total $62,642 $99,669 $180,830 $82,876 5.8 Source: RERC.

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RERC Size-Weighted Avg. PPU - 2Q 2008

nThemajorityof thesecondquarter2008survey respon-dentscommented thatapartmentswere thebest invest-ment opportunity in the Midwest regional property market because the weak housing market continues to cause high-erdemandforapartmentrentalunits.Thesize-andprice-weightedaveragesfortheapartmentsectorincreasedinboth the Midwest regional market and the national market duringsecondquarter.

nThevolumeofsecondquarter2008apartmentsalesintheMidwest region was 15 percent less than last quarter, and nearly30percentlessthanyear-agolevels.TheweightedaveragecapitalizationratefortheMidwestapartmentsec-tor remained at 6.5 percent, while the median capitaliza-tionratedecreasedslightly.

Midwest

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HotelPropertySector

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Midwest Hotel Transactions (7/1/07 - 6/30/08)Volume

(millions)Size-weighted

Average ($/unit)Price-weighted Average ($/unit)

Median($/sf)

Average Cap Rate (%)

Chicago $1,822 $205,172 $312,189 $89,063 7.0

Cincinnati $218 $118,180 $169,601 $134,318 –

Cleveland $293 $140,749 $195,461 $105,831 –

Columbus $176 $74,177 $115,212 $43,187 9.5

Detroit $109 $77,008 $103,555 $62,684 –

Indianapolis $122 $144,848 $162,702 $134,318 7.2

Kansas City $251 $109,131 $137,069 $102,536 8.6

Milwaukee $107 $80,979 $96,782 $69,213 –

Minneapolis $124 $87,700 $109,258 $67,889 12.0

Omaha – – – – –

St. Louis $199 $90,634 $118,408 $68,973 –

Toledo $16 $40,442 $45,160 $40,036 –

Midwest Total $3,751 $122,812 $221,055 $56,448 7.6

U.S. Total $38,464 $199,059 $558,637 $100,515 7.5 Source: RERC.

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nTheaveragesize-weightedpriceperhotelunitincreasedslightlyfortheMidwestregionduringsecondquarter2008,while the price-weighted average and median price perunitdeclinedgreatlyfromlastquarter.

nTheweightedaverageandmediancapitalizationratesde-creasedforthehotelsectorintheMidwestregionduringsecondquarter2008.

Midwest

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Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly

MidwestMarketSnapshot

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Midwest Region Space MarketOffice - 2Q-2008

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

Chicago 220,635 15.2 213 $18.67 Net

Cincinnati 34,650 17.5 201 $14.64 Gross

Cleveland 37,054 16.0 -35 $16.27 Gross

Columbus 28,840 16.6 -181 $11.42 Net

Detroit 71,457 21.7 -63 $19.25 Gross

Indianapolis 30,478 15.8 240 $17.21 Gross

Kansas City 47,089 14.0 -131 $17.44 Gross

Minneapolis 63,390 14.3 605 $13.58 Net

St. Louis 40,561 14.3 123 $18.52 Gross

Toledo 14,671 17.0 -94 $15.13 Gross

Industrial - 2Q-2008

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

Chicago 1,051,567 11.5 -4,371 $5.41 Net

Cincinnati 288,326 9.1 -3,116 $4.07 Net

Cleveland 305,549 9.7 -832 $4.04 Net

Columbus 247,188 14.1 -812 $3.59 Net

Detroit 476,857 17.4 -600 $5.10 Net

Indianapolis 269,931 10.9 902 $4.31 Gross

Kansas City 234,356 7.5 1,728 $4.15 Gross

Minneapolis 321,025 8.7 -730 $6.28 Net

St. Louis 270,155 11.1 -930 $4.39 Net

Retail - 2Q-2008

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

Chicago 95,032 11.6 217 $5.41

Cincinnati 21,379 12.5 140 $4.07

Cleveland 14,687 13.7 -22 $4.04

Columbus 18,183 16.3 -10 $3.59

Detroit 31,791 17.2 -313 $5.10

Indianapolis 20,702 13.8 68 $4.31

Kansas City 27,469 13.5 21 $4.15

Minneapolis 26,997 7.3 -6 $6.28

St. Louis 33,502 12.2 110 $4.39

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.

Trusted Advice. Proven Performance.

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

CBRE/TortoWheatonResearch isafull-service researchand investmentadvisory firm, specializing in com-mercial real estate markets.

With over 20 years of experience, our industry leading research, mar-ket expertise, and strategic partner-shipsprovideclientswithtacticalad-viceandstrategicdirectiontoidentifymarket opportunities that enhance performance and manage risk.

CBRE/TWR is internationally rec-ognized for our solid foundation ineconomics,accurate forecasts,ana-lytical expertise, and providing clients withunparalleled insight intothedy-namics of the real estate market that impactperformance.

William WheatonPh.D., Principal

Jon SouthardPrincipal

James CostelloPrincipal

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Demographics & Economics

Population Unemployment Rate (June 2008)

Chicago MSA 9.8 million Chicago2 7.1%

Chicago Growth1 0.98% Illinois2 7.1%

National Growth1 1.23% National2 5.5%

Household Income & Value

Per Capita Income $31,743 2008 Households 3.5 million

1-year Job Growth 0.90% Household Growth 0.94%

1-year Job Additions 40,300 Median Home Price $241,285

Major Employers

Abbot Laboratories

U.S. Post Office

University of Chicago

Northern Trust Bank FSB

CNA Financial Corp.Sources: Bureau of Labor Statistics, NAR, STDB Online.“Home Price Analysis Report for Chicago Region – 2007” ©2007 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 (2007-2012). 2Rates are non-seasonally adjusted.

Noteworthy Transactions

Sale Date Sale Price Sq. Ft./Units PPSF/PPU

Office

675 N. Field Dr. 4-08 $45,000,000 273,000 $165

Parkway North 6-08 $169,000,000 740,000 $228

Industrial

401 E. Touhy Ave. 4-08 $28,500,000 155,193 $184

440 Medinah Rd. 4-08 $25,760,000 318,221 $81

Retail

300-310 N. Michigan Ave. 5-08 $31,300,000 273,262 $115

225 E. Grand Ave. 5-08 $22,500,000 50,664 $444

Apartment

Woodlake 5-08 $34,250,000 260 $131,731

Avalon at West Grove 6-08 $38,700,000 400 $96,750

Hotel

Purple Hotel 5-08 $27,000,000 293 $92,150

Amerisuites 4-08 $10,300,000 126 $81,746Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.

Market Construction/Redevelopment Activity

Property Type

New(N)/Refurbished(R)

Total Sq. Ft./Units

Estimated Delivery

IKEA Distribution Center Industrial N 650,000 2009

208 S. LaSalle Hotel R 610 2010

215 W. Washington St. Multifamily N 389 2010

155 N. Wacker Dr. Office N 1,100,000 2009

Sunrise of Lombard Multifamily N 140 2009Sources: CBRE, RE Business.

Chi

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QuarterPrevious

Year

Office

Size-Weighted Average PPSF

Weighted Average Cap Rate

Industrial

Size-Weighted Average PPSF

Weighted Average Cap Rate

Retail

Size-Weighted Average PPSF

Weighted Average Cap Rate

Apartment

Size-Weighted Average PPU

Weighted Average Cap Rate

Hotel

Size-Weighted Average PPU

Weighted Average Cap Rate

Metro Cap Rate Comparison* Current Quarter

Office

vs. Midwest Region

vs. Nation

Industrial

vs. Midwest Region

vs. Nation

Retail

vs. Midwest Region

vs. Nation

Apartment

vs. Midwest Region

vs. Nation

Hotel

vs. Midwest Region

vs. Nation

*Comparison of current quarter weighted average capitalization rates.Source: RERC.

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Chicago Transaction Breakdown (7/1/07 - 6/30/08)Office Industrial Retail Apartment Hotel

< $5 MillionVolume (Mil) $197 $571 $512 $185 $38

Size Weighted Avg. ($ per sf/unit) $111 $56 $133 $61,799 $33,322

Price Weighted Avg. ($ per sf/unit) $155 $77 $222 $73,641 $37,690

Median ($ per sf/unit) $115 $66 $148 $60,465 $31,634

> $5 MillionVolume (Mil) $6,061 $1,705 $3,543 $1,726 $1,784

Size Weighted Avg. ($ per sf/unit) $194 $58 $249 $123,649 $230,486

Price Weighted Avg. ($ per sf/unit) $234 $79 $459 $168,735 $318,034

Median ($ per sf/unit) $162 $62 $205 $95,909 $134,318

All TransactionsVolume (Mil) $6,258 $2,276 $4,056 $1,911 $1,822

Size Weighted Avg. ($ per sf/unit) $190 $57 $224 $112,746 $205,172

Price Weighted Avg. ($ per sf/unit) $232 $79 $429 $159,546 $312,189

Median ($ per sf/unit) $142 $65 $170 $69,413 $89,063

Capitalization Rates (All Transactions)Weighted Average (%) 6.0 7.6 5.6 5.7 7.0

Median (%) 6.8 7.8 7.0 5.8 7.0 Source: RERC.

Chicago

HistoricalMedianPriceperSquareFoot(12monthtrailing)–OFFICE

HistoricalMedianPriceperSquareFoot(12monthtrailing)–RETAIL

HistoricalMedianPriceperSquareFoot(12monthtrailing)–INDUSTRIAL

Please note that in order to more accurately reflect 12-month trail-ing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.

HistoricalMedianPriceperUnit(12monthtrailing)–APARTMENT

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103

Demographics & Economics

Population Unemployment Rate (June 2008)

Cincinnati MSA 2.1 million Cincinnati2 6.0%

Cincinnati Growth1 0.87% Ohio2 6.7%

National Growth1 1.23% National2 5.5%

Household Income & Value

Per Capita Income $30,538 2008 Households 840,843

1-year Job Growth 0.10% Household Growth 0.95%

1-year Job Additions 1,500 Median Home Price $143,773

Major Employers

Procter & Gamble Co.

University of Cincinnati

GE Aviation

Valentine Research Inc.

RJS Sales & MarketingSources: Bureau of Labor Statistics, NAR, STDB Online.“Home Price Analysis Report for Cincinnati Region – 2007” ©2007 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 (2007-2012). 2Rates are non-seasonally adjusted.

Noteworthy Transactions

Sale Date Sale Price Sq. Ft./Units PPSF/PPU

Office

4700 E. Galbraith Rd. 6-08 $15,500,000 65,226 $238

4190 Harrison Ave. 5-08 $600,000 10,200 $59

Industrial

2850 Earhart 4-08 $9,000,000 218,064 $41

8085 Production Dr. 4-08 $3,050,000 48,440 $63

Retail

7800 Montgomery Rd. 4-08 $92,200,000 390,218 $236

Florence Marketplace 5-08 $6,300,000 24,913 $253

Apartment

McCauly Crossing 6-08 $20,250,000 264 $76,705

Grandview Summit 5-08 $15,500,000 192 $80,729

Hotel

2100 Dixie Highway 6-08 $4,100,000 214 $19,159Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.

Market Construction/Redevelopment Activity

Property Type

New(N)/Refurbished(R) Total Sq. Ft./Units

Estimated Delivery

Springhill Suites Hotel N 123 2009

Queen City Square Tower Office N 825,000 2011

The Banks Mixed Use N

300,000 Office

201070,000 Retail

400-unit Mult.Sources: CBRE, RE Business.

Cin

cin

nati Metro Trend Analysis Last

QuarterPrevious

Year

Office

Size-Weighted Average PPSF

Industrial

Size-Weighted Average PPSF

Weighted Average Cap Rate

Retail

Size-Weighted Average PPSF

Weighted Average Cap Rate =

Apartment

Size-Weighted Average PPU

Hotel

Size-Weighted Average PPU

Metro Cap Rate Comparison* Current Quarter

Office

vs. Midwest Region

vs. Nation

Industrial

vs. Midwest Region

vs. Nation

Retail

vs. Midwest Region

vs. Nation

Apartment

vs. Midwest Region

vs. Nation

*Comparison of current quarter weighted average capitalization rates.Source: RERC.

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104

Cincinnati Transaction Breakdown (7/1/07 - 6/30/08)Office Industrial Retail Apartment Hotel

< $5 MillionVolume (Mil) $22 $69 $46 $46 –

Size Weighted Avg. ($ per sf/unit) $89 $36 $89 $28,030 –

Price Weighted Avg. ($ per sf/unit) $107 $47 $138 $32,144 –

Median ($ per sf/unit) $86 $41 $79 $25,000 –

> $5 MillionVolume (Mil) $42 $129 $223 $194 $207

Size Weighted Avg. ($ per sf/unit) $100 $53 $149 $54,349 $173,696

Price Weighted Avg. ($ per sf/unit) $150 $66 $186 $61,624 $177,257

Median ($ per sf/unit) $126 $51 $145 $54,741 $161,131

All TransactionsVolume (Mil) $64 $198 $269 $241 $218

Size Weighted Avg. ($ per sf/unit) $96 $46 $133 $46,007 $118,180

Price Weighted Avg. ($ per sf/unit) $135 $59 $178 $55,931 $169,601

Median ($ per sf/unit) $86 $42 $87 $27,000 $134,318

Capitalization Rates (All Transactions)Weighted Average (%) 7.0 7.8 6.9 5.5 –

Median (%) 6.8 7.9 7.0 5.4 – Source: RERC.

Cincinnati

HistoricalMedianPriceperSquareFoot(12monthtrailing)–OFFICE

HistoricalMedianPriceperSquareFoot(12monthtrailing)–RETAIL

HistoricalMedianPriceperSquareFoot(12monthtrailing)–INDUSTRIAL

Please note that in order to more accurately reflect 12-month trail-ing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.

Footnotes:1The decline was due in part to a num-ber of smaller retail transactions.

1

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105

Demographics & Economics

Population Unemployment Rate (June 2008)

Cleveland MSA 2.1 million Cleveland2 7.7%

Cleveland Growth1 -0.08% Ohio2 6.7%

National Growth1 1.23% National2 5.5%

Household Income & Value

Per Capita Income $29,070 2008 Households 862,890

1-year Job Growth – Household Growth 0.10%

1-year Job Additions – Median Home Price $137,062

Major Employers

Cleveland Clinic Foundation

University Hospital of Cleveland

Key Bank

Money Mart

Progressive Corp.Sources: Bureau of Labor Statistics, NAR, STDB Online.1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted.

Noteworthy Transactions

Sale Date Sale Price Sq. Ft./Units PPSF/PPU

Office

One Cleveland Center 6-08 $86,300,000 541,505 $159

North Point Tower 6-08 $123,700,000 878,000 $141

Industrial

7528 Auburn Rd. 4-08 $15,175,000 242,165 $63

8181 Darrow Rd. 5-08 $9,200,000 257,000 $36

Retail

Shoregate Shopping Center 5-08 $16,863,000 226,487 $74

11706 Clifton Blvd. 6-08 $2,415,000 11,560 $209

Apartment

Willo Arms 6-08 $24,000,000 740 $32,432

Highland Woods 5-08 $26,800,000 661 $40,545

Hotel

795 Mondial Pkwy. 4-08 $5,000,000 95 $52,632Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.

Cle

vela

ndMetro Trend Analysis Last

QuarterPrevious

Year

Office

Size-Weighted Average PPSF

Weighted Average Cap Rate

Industrial

Size-Weighted Average PPSF

Retail

Size-Weighted Average PPSF

Apartment

Size-Weighted Average PPU

Weighted Average Cap Rate

Hotel

Size-Weighted Average PPU

Metro Cap Rate Comparison* Current Quarter

Office

vs. Midwest Region

vs. Nation

Industrial

vs. Midwest Region

vs. Nation

Retail

vs. Midwest Region

vs. Nation

Apartment

vs. Midwest Region

vs. Nation

*Comparison of current quarter weighted average capitalization rates.Source: RERC.

Market Construction/Redevelopment Activity

Property Type

New(N)/Refurbished(R)

Total Sq. Ft./Units

Estimated Delivery

Estancia Executive Center Phase III Office N 90,000 2009

Hotel Indigo Hotel N N/A 2010

The Flats Mixed Use N N/A 2010

Ameritrust Complex Mixed Use R370

Rooms N/A450,000

Sources: CBRE, RE Business.

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106

Cleveland Transaction Breakdown (7/1/07 - 6/30/08)Office Industrial Retail Apartment Hotel

< $5 MillionVolume (Mil) $79 $151 $104 $58 –

Size Weighted Avg. ($ per sf/unit) $77 $36 $81 $35,663 –

Price Weighted Avg. ($ per sf/unit) $105 $50 $129 $43,798 –

Median ($ per sf/unit) $75 $39 $70 $35,714 –

> $5 MillionVolume (Mil) $773 $197 $172 $100 $290

Size Weighted Avg. ($ per sf/unit) $121 $55 $111 $46,722 $145,967

Price Weighted Avg. ($ per sf/unit) $126 $68 $128 $66,138 $196,894

Median ($ per sf/unit) $120 $64 $115 $43,518 $135,008

All TransactionsVolume (Mil) $851 $348 $276 $159 $293

Size Weighted Avg. ($ per sf/unit) $115 $45 $97 $41,948 $140,749

Price Weighted Avg. ($ per sf/unit) $124 $60 $128 $57,939 $195,461

Median ($ per sf/unit) $84 $43 $75 $38,000 $105,831

Capitalization Rates (All Transactions)Weighted Average (%) 7.7 7.2 8.4 7.7 –

Median (%) 8.4 7.5 8.5 5.4 –Source: RERC.

Cleveland

HistoricalMedianPriceperSquareFoot(12monthtrailing)–OFFICE

HistoricalMedianPriceperSquareFoot(12monthtrailing)–RETAIL

HistoricalMedianPriceperSquareFoot(12monthtrailing)–INDUSTRIAL

Please note that in order to more accurately reflect 12-month trail-ing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.

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107

Demographics & Economics

Population Unemployment Rate (June 2008)

Columbus MSA 1.8 million Columbus2 5.7%

Columbus Growth1 1.16% Ohio2 6.7%

National Growth1 1.23% National2 5.5%

Household Income & Value

Per Capita Income $30,841 2008 Households 712,802

1-year Job Growth 0.60% Household Growth 1.24%

1-year Job Additions 6,000 Median Home Price $148,828

Major Employers

Ohio State University

State of Ohio Department of Corrections

Riverside Methodist Hospital

Defense Supply Center

Hines Interest LTD PartnershipSources: Bureau of Labor Statistics, NAR, STDB Online.“Home Price Analysis Report for Columbus Region – 2007” ©2007 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 (2007-2012). 2Rates are non-seasonally adjusted.

Noteworthy Transactions

Sale Date Sale Price Sq. Ft./Units PPSF/PPU

Office

485 Metro Place S. 6-08 $11,000,000 96,876 $114

5200 Upper Metro Place 5-08 $10,000,000 96,000 $104

Industrial

Kellogg’s 4-08 $51,000,000 1,200,000 $43

5255 Centerpoint Pkwy. 4-08 $18,800,000 516,025 $36

Retail

Walgreens 4-08 $7,292,625 22,748 $321

Park Place Center 5-08 $11,900,000 106,833 $111

Apartment

Northwoods 6-08 $16,000,000 280 $57,143

Hidden Acres East 6-08 $3,600,000 84 $42,857

Hotel

Knights Inn 5-08 $1,290,000 75 $17,200Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.

Co

lum

bus Metro Trend Analysis Last

QuarterPrevious

Year

Office

Size-Weighted Average PPSF

Industrial

Size-Weighted Average PPSF

Retail

Size-Weighted Average PPSF

Apartment

Size-Weighted Average PPU

Weighted Average Cap Rate =

Hotel

Size-Weighted Average PPU

Metro Cap Rate Comparison* Current Quarter

Office

vs. Midwest Region

vs. Nation

Industrial

vs. Midwest Region

vs. Nation

Apartment

vs. Midwest Region

vs. Nation

Hotel

vs. Midwest Region

vs. Nation

*Comparison of current quarter weighted average capitalization rates.Source: RERC.

Market Construction/Redevelopment Activity

Property Type

New(N)/Refurbished(R)

Total Sq. Ft./Units

Estimated Delivery

Franklin County Courthouse Office N 325,000 2010

Embassy Suites Hotel N 185 2009

Albany Park Retail N 300,000 2009Sources: CBRE, RE Business.

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108

Columbus Transaction Breakdown (7/1/07 - 6/30/08)Office Industrial Retail Apartment Hotel

< $5 MillionVolume (Mil) $94 $93 $64 $37 $27

Size Weighted Avg. ($ per sf/unit) $82 $43 $120 $27,276 $34,707

Price Weighted Avg. ($ per sf/unit) $119 $55 $219 $36,837 $39,400

Median ($ per sf/unit) $103 $45 $76 $31,719 $38,699

> $5 MillionVolume (Mil) $259 $192 $170 $522 $149

Size Weighted Avg. ($ per sf/unit) $104 $37 $145 $53,676 $93,638

Price Weighted Avg. ($ per sf/unit) $132 $41 $162 $61,210 $129,068

Median ($ per sf/unit) $117 $42 $214 $64,976 $134,318

All TransactionsVolume (Mil) $353 $285 $234 $559 $176

Size Weighted Avg. ($ per sf/unit) $97 $38 $137 $50,469 $74,177

Price Weighted Avg. ($ per sf/unit) $128 $45 $177 $59,610 $115,212

Median ($ per sf/unit) $105 $43 $100 $42,792 $43,187

Capitalization Rates (All Transactions)Weighted Average (%) 8.5 8.9 – 6.7 9.5

Median (%) 7.1 7.9 – 7.0 7.0 Source: RERC.

Columbus

HistoricalMedianPriceperSquareFoot(12monthtrailing)–OFFICE

Please note that in order to more accurately reflect 12-month trailing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.

HistoricalMedianPriceperSquareFoot(12monthtrailing)–INDUSTRIAL

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109

Demographics & Economics

Population Unemployment Rate (June 2008)

Detroit MSA 4.6 million Detroit2 9.7%

Detroit Growth1 0.24% Michigan2 8.7%

National Growth1 1.23% National2 5.5%

Household Income & Value

Per Capita Income $31,368 2008 Households 1.8 million

1-year Job Growth – Household Growth 0.33%

1-year Job Additions – Median Home Price $145,931

Major Employers

Rehabilitation Institute of Michigan

Detroit Receiving Hospital

Wayne State University

General Motors Corp.

DTE EnergySources: Bureau of Labor Statistics, NAR, STDB Online.1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted.

Noteworthy Transactions

Sale Date Sale Price Sq. Ft./Units PPSF/PPU

Office

Renaissance Center 5-08 $626,000,000 5,500,000 $114

40 Oak Hollow Rd. 6-08 $12,500,000 81,000 $154

Industrial

40600 Plymouth Rd. 5-08 $9,400,000 259,351 $36

31077 Durr Dr. 5-08 $6,600,000 117,709 $56

Retail

Oakland Pointe 5-08 $15,000,000 212,564 $71

36485 Garfield Rd. 5-08 $2,990,000 11,180 $267

Apartment

8430 E. Jefferson 4-08 $1,800,000 152 $11,842Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.

De

tro

it Metro Trend Analysis Last Quarter

Previous Year

Office

Size-Weighted Average PPSF

Industrial

Size-Weighted Average PPSF

Weighted Average Cap Rate

Retail

Size-Weighted Average PPSF

Weighted Average Cap Rate

Apartment

Size-Weighted Average PPU

Weighted Average Cap Rate =

Hotel

Size-Weighted Average PPU

Metro Cap Rate Comparison* Current Quarter

Office

vs. Midwest Region

vs. Nation

Industrial

vs. Midwest Region

vs. Nation

Retail

vs. Midwest Region

vs. Nation

Apartment

vs. Midwest Region

vs. Nation

*Comparison of current quarter weighted average capitalization rates.Source: RERC.

Market Construction/Redevelopment Activity

Property Type

New(N)/Refurbished(R)

Total Sq. Ft./Units

Estimated Delivery

Cameron Court Senior VillageApartments Multifamily N 48 2009

Market Strategies International Office N 60000 2009Sources: CBRE, RE Business.

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110

Detroit Transaction Breakdown (7/1/07 - 6/30/08)Office Industrial Retail Apartment Hotel

< $5 MillionVolume (Mil) $51 $82 $77 $27 $17

Size Weighted Avg. ($ per sf/unit) $88 $36 $116 $24,076 $28,622

Price Weighted Avg. ($ per sf/unit) $120 $72 $183 $31,014 $29,841

Median ($ per sf/unit) $107 $45 $101 $28,136 $28,032

> $5 MillionVolume (Mil) $1,042 $256 $244 $328 $92

Size Weighted Avg. ($ per sf/unit) $97 $61 $133 $53,635 $112,823

Price Weighted Avg. ($ per sf/unit) $117 $84 $148 $67,043 $117,397

Median ($ per sf/unit) $98 $66 $147 $58,013 $119,791

All TransactionsVolume (Mil) $1,093 $338 $322 $355 $109

Size Weighted Avg. ($ per sf/unit) $97 $52 $129 $49,014 $77,008

Price Weighted Avg. ($ per sf/unit) $117 $81 $157 $64,277 $103,555

Median ($ per sf/unit) $101 $49 $102 $37,797 $62,684

Capitalization Rates (All Transactions)Weighted Average (%) 8.4 8.8 7.8 7.1 –

Median (%) 7.2 9.0 6.8 7.2 –Source: RERC.

Detroit

HistoricalMedianPriceperSquareFoot(12monthtrailing)–OFFICE

HistoricalMedianPriceperSquareFoot(12monthtrailing)–RETAIL

HistoricalMedianPriceperSquareFoot(12monthtrailing)–INDUSTRIAL

Please note that in order to more accurately reflect 12-month trail-ing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.

Footnotes:1The increase was due to the sale of 124 W. William St. for $190/sf.1

HistoricalMedianPriceperUnit(12monthtrailing)–APARTMENT

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111

Demographics & Economics

Population Unemployment Rate (June 2008)

Indianapolis MSA 1.7 million Indianapolis2 5.2%

Indianapolis Growth1 1.67% Indiana2 5.8%

National Growth1 1.23% National2 5.5%

Household Income & Value

Per Capita Income $31,623 2008 Households 682,316

1-year Job Growth 1.60% Household Growth 1.71%

1-year Job Additions 14,600 Median Home Price $140,641

Major Employers

Eli Lilly & Co.

Peyton Manning’s Childrens Hospital

Indiana University – Purdue University

Indy Honda

Rolls-Royce Corp.Sources: Bureau of Labor Statistics, NAR, STDB Online.“Home Price Analysis Report for Indianapolis Region – 2007” ©2007 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 (2007-2012). 2Rates are non-seasonally adjusted.

Noteworthy Transactions

Sale Date Sale Price Sq. Ft./Units PPSF/PPU

Office

Epler Park Building B. 4-08 $5,850,000 34,000 $172

8649 Commerce Park Place 5-08 $1,350,000 20,000 $68

Industrial

Panattoni I & II 6-08 $45,300,000 1,133,570 $40

Park 100 Industrial Park 5-08 $72,400,000 1,875,619 $39

Retail

Eastgate Consumer Mall 5-08 $26,000,000 370,000 $70

Noble West Shoppes 5-08 $18,300,000 59,085 $310

Apartment

Riverchase Apartments 5-08 $14,500,000 216 $67,130

Mann Village 4-08 $14,000,000 336 $41,667

Hotel

36 W. Rampart St. 4-08 $3,200,000 58 $55,172Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.

Market Construction/Redevelopment Activity

Property Type

New(N)/Refurbished(R)

Total Sq. Ft./Units

Estimated Delivery

Ralston Square Mixed Use N 41,000 2009

Harlem Furniture Retail N 63,000 N/A

INTECH Four Office N 150,000 2009

Hilton Garden Inn Hotel N 122 N/A

Cosmopolitan on the Canal Multifamily N 218 N/ASources: CBRE, RE Business.

Ind

iana

po

lis Metro Trend Analysis Last Quarter

Previous Year

Office

Size-Weighted Average PPSF

Industrial

Size-Weighted Average PPSF

Retail

Size-Weighted Average PPSF

Apartment

Size-Weighted Average PPU

Hotel

Size-Weighted Average PPU

Metro Cap Rate Comparison* Current Quarter

Office

vs. Midwest Region

vs. Nation

Industrial

vs. Midwest Region

vs. Nation

Apartment

vs. Midwest Region

vs. Nation

Hotel

vs. Midwest Region

vs. Nation

*Comparison of current quarter weighted average capitalization rates.Source: RERC.

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112

Indianapolis Transaction Breakdown (7/1/07 - 6/30/08)Office Industrial Retail Apartment Hotel

< $5 MillionVolume (Mil) $16 $6 $16 – –

Size Weighted Avg. ($ per sf/unit) $46 $35 $137 – –

Price Weighted Avg. ($ per sf/unit) $73 $39 $196 – –

Median ($ per sf/unit) $67 $46 $103 – –

> $5 MillionVolume (Mil) $134 $97 $65 $239 $119

Size Weighted Avg. ($ per sf/unit) $93 $39 $68 $62,311 $151,490

Price Weighted Avg. ($ per sf/unit) $98 $45 $90 $74,159 $165,603

Median ($ per sf/unit) $85 $41 $69 $71,725 $134,318

All TransactionsVolume (Mil) $150 $103 $81 $241 $122

Size Weighted Avg. ($ per sf/unit) $84 $39 $76 $62,033 $144,848

Price Weighted Avg. ($ per sf/unit) $95 $44 $111 $73,912 $162,702

Median ($ per sf/unit) $82 $42 $70 $71,725 $134,318

Capitalization Rates (All Transactions)Weighted Average (%) 8.0 8.1 – 7.5 7.2

Median (%) 7.0 8.1 – 7.8 9.3 Source: RERC.

Indianapolis

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113

Demographics & Economics

Population Unemployment Rate (June 2008)

Kansas City MSA 2 million Kansas City2 5.9%

Kansas City Growth1 1.26% Missouri2 6.0%

National Growth1 1.23% National2 5.5%

Household Income & Value

Per Capita Income $30,632 2008 Households 798,510

1-year Job Growth 2.10% Household Growth 1.31%

1-year Job Additions 20,400 Median Home Price $146,793

Major Employers

Hallmark Cards Inc.

Kansas City City Hall

U.S. Health & Human Services Department

University of Missouri-Kansas City (UMKC)

DST TechnologiesSources: Bureau of Labor Statistics, NAR, STDB Online.“Home Price Analysis Report for Kansas City Region – 2007” ©2007 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 (2007-2012). 2Rates are non-seasonally adjusted.

Noteworthy Transactions

Sale Date Sale Price Sq. Ft./Units PPSF/PPU

Office

4901 College Blvd. 6-08 $8,500,000 22,000 $386

Bank of America Operations Center 4-08 $36,100,000 310,000 $116

Industrial

Kimberly Clark Distribution Center 6-08 $20,000,000 446,500 $45

Airworld Distribution Center 6-08 $7,300,000 187,600 $39

Retail

3400 NW. Jefferson St. 5-08 $3,281,250 70,089 $47

Prairie Shopping Center 6-08 $5,500,000 21,306 $258

Apartment

4601 Broadway St. 4-08 $17,350,000 106 $163,679

The Arbors of Grandview 4-08 $7,800,000 298 $26,174

Hotel

Marriott Country Club Plaza Hotel 4-08 $52,800,000 295 $178,983

Residence Inn 4-08 $17,400,000 106 $164,151Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.

Market Construction/Redevelopment Activity

Property Type

New(N)/Refurbished(R)

Total Sq. Ft./Units

Estimated Delivery

7501 NW 106th Terrace Industrial N 400,000 N/A

Corporate Woods Building 83 Office N 350,000 2009

417 E. 13th St. Office R 40,542 N/A

Kansas City Intl. Airport Warehouse Industrial N 500,000 N/ASources: CBRE, RE Business.

Kans

as

City

Metro Trend Analysis Last Quarter

Previous Year

Office

Size-Weighted Average PPSF

Weighted Average Cap Rate = =

Industrial

Size-Weighted Average PPSF

Retail

Size-Weighted Average PPSF

Apartment

Size-Weighted Average PPU

Weighted Average Cap Rate =

Hotel

Size-Weighted Average PPU

Metro Cap Rate Comparison* Current Quarter

Office

vs. Midwest Region

vs. Nation

Apartment

vs. Midwest Region

vs. Nation

Hotel

vs. Midwest Region

vs. Nation

*Comparison of current quarter weighted average capitalization rates.Source: RERC.

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114

Kansas City Transaction Breakdown (7/1/07 - 6/30/08)Office Industrial Retail Apartment Hotel

< $5 MillionVolume (Mil) $25 $88 $148 $28 –

Size Weighted Avg. ($ per sf/unit) $80 $38 $85 $29,783 –

Price Weighted Avg. ($ per sf/unit) $122 $77 $169 $32,038 –

Median ($ per sf/unit) $64 $48 $74 $31,100 –

> $5 MillionVolume (Mil) $437 $187 $187 $224 $240

Size Weighted Avg. ($ per sf/unit) $157 $109 $163 $65,728 $117,185

Price Weighted Avg. ($ per sf/unit) $187 $131 $184 $78,415 $141,159

Median ($ per sf/unit) $140 $60 $154 $47,606 $118,456

All TransactionsVolume (Mil) $461 $276 $335 $252 $251

Size Weighted Avg. ($ per sf/unit) $150 $68 $116 $57,949 $109,131

Price Weighted Avg. ($ per sf/unit) $183 $114 $177 $73,257 $137,069

Median ($ per sf/unit) $119 $49 $86 $37,901 $102,536

Capitalization Rates (All Transactions)Weighted Average (%) 7.1 – – 7.0 8.6

Median (%) 7.3 – – 7.1 9.3 Source: RERC.

Kansas City

HistoricalMedianPriceperSquareFoot(12monthtrailing)–OFFICE

HistoricalMedianPriceperUnit(12monthtrailing)–APARTMENT

HistoricalMedianPriceperSquareFoot(12monthtrailing)–INDUSTRIAL

Please note that in order to more accurately reflect 12-month trail-ing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.

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Demographics & Economics

Population Unemployment Rate (June 2008)

Milwaukee MSA 1.5 million Milwaukee2 5.3%

Milwaukee Growth1 0.22% Wisconsin2 4.9%

National Growth1 1.23% National2 5.5%

Household Income & Value

Per Capita Income $31,329 2008 Households 615,382

1-year Job Growth 1.50% Household Growth 0.38%

1-year Job Additions 12,800 Median Home Price $194,481

Major Employers

Wheaton Franciscan Healthcare

University of Wisconsin

General Mitchell International

Northern Chocolate Co.

Northwestern Mutual InvestmentSources: Bureau of Labor Statistics, NAR, STDB Online. “Home Price Analysis Report for Milwaukee Region – 2007” ©2007 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 (2007-2012). 2Rates are non-seasonally adjusted.

Noteworthy Transactions

Sale Date Sale Price Sq. Ft./Units PPSF/PPU

Office

111 E. Kilbourn Ave. 6-08 $53,000,000 373,516 $142

21675 Longview Dr. 4-08 $3,030,000 16,673 $182

Industrial

5100 W Brown Deer Rd. 5-08 $3,550,000 128,000 $28

1725 Dolphin Dr. 5-08 $3,300,000 50,250 $66

Retail

1202 N. Green Bay Rd. 5-08 $10,500,000 59,162 $177

11300 N. Port Washington Rd. 5-08 $10,900,000 42,330 $258

Apartment

17465 W. River Birch Dr. 5-08 $15,800,000 95 $166,316

2011 E. Park Pl. 5-08 $1,110,000 17 $65,294

Hotel

Hospitality Inn & Suites 5-08 $6,950,000 192 $36,198

1150 Oakes Rd. 5-08 $2,200,000 61 $36,066Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.

Market Construction/Redevelopment Activity

Property Type

New(N)/Refurbished(R)

Total Sq. Ft./Units

Estimated Delivery

Pabst Farms Town Centre Retail N 1,000,000 2010

1200 W. Sunset Dr. Retail N 4,500,000 2009

The Shoppes at Fox River Retail N 498,500 N/A

1824 E. Park Place Multifamily N 61 2009

Sleep Inn & Suites Hotel N 82 2009Sources: CBRE, RE Business.

Milw

auk

ee Metro Trend Analysis Last

QuarterPrevious

Year

Office

Size-Weighted Average PPSF

Industrial

Size-Weighted Average PPSF

Retail

Size-Weighted Average PPSF

Weighted Average Cap Rate = =

Apartment

Size-Weighted Average PPU

Hotel

Size-Weighted Average PPU

Metro Cap Rate Comparison* Current Quarter

Office

vs. Midwest Region

vs. Nation

Industrial

vs. Midwest Region

vs. Nation

Retail

vs. Midwest Region

vs. Nation

Apartment

vs. Midwest Region

vs. Nation

Hotel

vs. Midwest Region

vs. Nation

*Comparison of current quarter weighted average capitalization rates.Source: RERC.

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116

Milwaukee Transaction Breakdown (7/1/07 - 6/30/08)Office Industrial Retail Apartment Hotel

< $5 MillionVolume (Mil) $40 $73 $78 $31 –

Size Weighted Avg. ($ per sf/unit) $74 $43 $87 $50,586 –

Price Weighted Avg. ($ per sf/unit) $96 $54 $168 $56,658 –

Median ($ per sf/unit) $70 $50 $68 $50,833 –

> $5 MillionVolume (Mil) $306 $76 $78 $49 $102

Size Weighted Avg. ($ per sf/unit) $142 $43 $185 $58,194 $86,710

Price Weighted Avg. ($ per sf/unit) $162 $88 $211 $89,893 $99,882

Median ($ per sf/unit) $142 $55 $211 $42,381 $77,412

All TransactionsVolume (Mil) $347 $149 $157 $80 $107

Size Weighted Avg. ($ per sf/unit) $128 $43 $119 $54,957 $80,979

Price Weighted Avg. ($ per sf/unit) $154 $72 $190 $76,878 $96,782

Median ($ per sf/unit) $76 $50 $73 $49,917 $69,213

Capitalization Rates (All Transactions)Weighted Average (%) 7.6 7.7 7.0 – –

Median (%) 7.7 6.1 7.1 – –Source: RERC.

Milwaukee

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117

Demographics & Economics

Population Unemployment Rate (June 2008)

Minneapolis MSA 3.3 million Minneapolis2 5.1%

Minneapolis Growth1 1.34% Minnesota2 5.3%

National Growth1 1.23% National2 5.5%

Household Income & Value

Per Capita Income $36,619 2008 Households 1.3 million

1-year Job Growth 0.90% Household Growth 1.38%

1-year Job Additions 15,700 Median Home Price $220,838

Major Employers

University of Minnesota

Fairview University Medical Center

UPS

Target Stores Inc.

Carlson Companies Inc.Sources: Bureau of Labor Statistics, NAR, STDB Online.“Home Price Analysis Report for Minneapolis Region – 2007” ©2007 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 (2007-2012). 2Rates are non-seasonally adjusted.

Noteworthy Transactions

Sale Date Sale Price Sq. Ft./Units PPSF/PPU

Office

Crosstown Corporate Center 5-08 $10,580,000 60,000 $176

Rosedale Towers 5-08 $8,600,000 86,077 $100

Industrial

770-800 Kasota Ave. 4-08 $12,604,175 318,006 $40

6403 & 6507 Cecilia Dr. 4-08 $10,380,000 161,368 $64

Retail

Savage Town Square 6-08 $14,050,000 87,181 $161

2039 Robert St. S. 6-08 $16,000,000 163,162 $98

Apartment

3305-3433 53rd Ave. N. 5-08 $12,000,000 610 $19,672

415 Erie St. SE 6-08 $8,800,000 122 $72,131

Hotel

Westgate Inn 4-08 $5,100,000 83 $61,446Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.

Market Construction/Redevelopment Activity

Property Type

New(N)/Refurbished(R)

Total Sq. Ft./Units

Estimated Delivery

The Manning Ave. Project Mixed Use N 25,264,486 2030

Syngenta Headquarters Office N 110,000 N/A

Hampton Inn & Suites Hotel N 124 2009

Excelsior Crossings in Hopkins Office N 450,000 2010

Boulder Lakes Office III Industrial N 116,000 N/ASources: CBRE, RE Business.

Min

nea

po

lisMetro Trend Analysis Last

QuarterPrevious

Year

Office

Size-Weighted Average PPSF

Weighted Average Cap Rate

Industrial

Size-Weighted Average PPSF

Retail

Size-Weighted Average PPSF

Weighted Average Cap Rate

Apartment

Size-Weighted Average PPU

Hotel

Size-Weighted Average PPU

Metro Cap Rate Comparison* Current Quarter

Office

vs. Midwest Region

vs. Nation

Industrial

vs. Midwest Region

vs. Nation

Retail

vs. Midwest Region

vs. Nation

Apartment

vs. Midwest Region

vs. Nation

Hotel

vs. Midwest Region

vs. Nation

*Comparison of current quarter weighted average capitalization rates.Source: RERC.

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118

Minneapolis Transaction Breakdown (7/1/07 - 6/30/08)Office Industrial Retail Apartment Hotel

< $5 MillionVolume (Mil) $70 $160 $154 $57 –

Size Weighted Avg. ($ per sf/unit) $115 $54 $91 $56,072 –

Price Weighted Avg. ($ per sf/unit) $152 $79 $152 $66,009 –

Median ($ per sf/unit) $111 $57 $78 $55,167 –

> $5 MillionVolume (Mil) $1,115 $346 $215 $223 $114

Size Weighted Avg. ($ per sf/unit) $116 $63 $135 $73,368 $101,049

Price Weighted Avg. ($ per sf/unit) $136 $92 $189 $88,265 $115,896

Median ($ per sf/unit) $126 $63 $154 $78,472 $101,420

All TransactionsVolume (Mil) $1,186 $507 $369 $280 $124

Size Weighted Avg. ($ per sf/unit) $116 $60 $113 $69,003 $87,700

Price Weighted Avg. ($ per sf/unit) $137 $88 $173 $83,702 $109,258

Median ($ per sf/unit) $124 $58 $93 $61,835 $67,889

Capitalization Rates (All Transactions)Weighted Average (%) 7.4 7.9 6.9 6.9 12.0

Median (%) 7.3 7.9 6.8 5.8 7.0 Source: RERC.

Minneapolis

HistoricalMedianPriceperSquareFoot(12monthtrailing)–INDUSTRIAL

HistoricalMedianPriceperUnit(12monthtrailing)–APARTMENT

HistoricalMedianPriceperSquareFoot(12monthtrailing)–RETAIL

Please note that in order to more accurately reflect 12-month trail-ing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.

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119

Demographics & Economics

Population Unemployment Rate (June 2008)

Omaha MSA 851,000 Omaha2 3.8%

Omaha Growth1 1.28% Nebraska2 3.4%

National Growth1 1.23% National2 5.5%

Household Income & Value

Per Capita Income $28,952 2008 Households 331,300

1-year Job Growth - Household Growth 1.39%

1-year Job Additions - Median Home Price $138,154

Major Employers

UNMC Physicians Ent.

First Data Resources Inc.

Mutual of Omaha Insurance Co.

Con Agra Foods Inc.

Union Pacific Railroad Co.Sources: Bureau of Labor Statistics, NAR, STDB Online.1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted.

Noteworthy Transactions

Sale Date Sale Price Sq. Ft./Units PPSF/PPU

Office

13132 Davenport St. 5-08 $1,500,000 8,000 $188

Industrial

10802 Farnam Dr. 5-08 $5,500,000 61,120 $90

8951 S. 126th St. 4-08 $1,370,000 51,000 $27

Retail

8502-8546 Granville Pkwy. 5-08 $12,030,000 564,045 $21

14304 W. Maple Rd. 4-08 $8,200,000 70,032 $117

Apartment

8500 Granville Pkwy. 5-08 $12,020,000 276 $43,551

10923 Old Mill Ct. 5-08 $9,247,000 248 $37,286Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.

Om

aha

Metro Trend Analysis Last Quarter

Previous Year

Office

Size-Weighted Average PPSF

Industrial

Size-Weighted Average PPSF

Retail

Size-Weighted Average PPSF

Apartment

Size-Weighted Average PPU

Metro Cap Rate Comparison* Current Quarter

Office

vs. Midwest Region

vs. Nation

Retail

vs. Midwest Region

vs. Nation

*Comparison of current quarter weighted average capitalization rates.Source: RERC.

Market Construction/Redevelopment Activity

Property Type

New(N)/Refurbished(R)

Total Sq. Ft./Units

Estimated Delivery

Midtown Crossing at Turner Park Mixed Use N 1,000,000 2009

Homes Instead Senior Care HQ Office N 60,000 N/A

Westplex III Office N 107,500 N/A

Aksarben Village Office N 154,000 N/ASources: CBRE, RE Business.

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120

Omaha Transaction Breakdown (7/1/07 - 6/30/08)Office Industrial Retail Apartment Hotel

< $5 MillionVolume (Mil) $10 $27 $44 $13 –

Size Weighted Avg. ($ per sf/unit) $64 $36 $66 $48,600 –

Price Weighted Avg. ($ per sf/unit) $92 $60 $164 $64,142 –

Median ($ per sf/unit) $55 $40 $82 $39,193 –

> $5 MillionVolume (Mil) $50 – – $120 –

Size Weighted Avg. ($ per sf/unit) $69 – – $66,864 –

Price Weighted Avg. ($ per sf/unit) $110 – – $75,344 –

Median ($ per sf/unit) $98 – – $75,256 –

All TransactionsVolume (Mil) $61 $56 $70 $133 –

Size Weighted Avg. ($ per sf/unit) $68 $52 $52 $64,467 –

Price Weighted Avg. ($ per sf/unit) $107 $78 $130 $74,236 –

Median ($ per sf/unit) $56 $45 $88 $43,025 –

Capitalization Rates (All Transactions)Weighted Average (%) 7.2 – 8.2 – –

Median (%) 7.2 – 9.1 – –Source: RERC.

Omaha

HistoricalMedianPriceperSquareFoot(12monthtrailing)–INDUSTRIAL

Please note that in order to more accurately reflect 12-month trailing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.

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121

Demographics & Economics

Population Unemployment Rate (June 2008)

St. Louis MSA 2.9 million St. Louis2 6.5%

St. Louis Growth1 0.74% Missouri2 6.0%

National Growth1 1.23% National2 5.5%

Household Income & Value

Per Capita Income $29,450 2008 Households 1.1 million

1-year Job Growth 1.30% Household Growth 0.82%

1-year Job Additions 18,000 Median Home Price $144,085

Major Employers

St. Louis University

ABM Industries Inc.

Anheuser-Busch Co. Inc.

ABM Industries

A. G. Edwards & Sons Inc.Sources: Bureau of Labor Statistics, NAR, STDB Online.“Home Price Analysis Report for St. Louis Region – 2007” ©2007 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 (2007-2012). 2Rates are non-seasonally adjusted.

Noteworthy Transactions

Sale Date Sale Price Sq. Ft./Units PPSF/PPU

Office

National City Center 4-08 $49,500,000 293,874 $168

Solutia HQ 6-08 $42,750,000 257,250 $166

Industrial

131 Enterprise Dr. 6-08 $5,300,000 65,000 $82

Ford Assembly Plant 6-08 $20,000,000 523,161 $38

Retail

Saint Peters Square 6-08 $16,300,000 110,149 $148

Bakewell Real Estate 4-08 $6,500,000 10,800 $602

Apartment

Oak Park Village 6-08 $18,000,000 758 $23,747

Park Commons 4-08 $14,200,000 174 $81,609

Hotel

Holiday Inn Select 5-08 $6,600,000 195 $33,846Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.

Market Construction/Redevelopment Activity

Property Type

New(N)/Refurbished(R)

Total Sq. Ft./Units

Estimated Delivery

Lemp Brewery Complex Mixed Use R75,000 SF

& 400 Units 2012

13610 Riverport Drive Office N 146,000 2009

6177 Delmar Boulevard Hotel N 124 2009

Villa Lighting Warehouse Industrial N 206,288 2009

The Meadows at LakeSt. Louis Retail N 260,000 2009Sources: CBRE, RE Business.

St. L

oui

s Metro Trend Analysis Last Quarter

Previous Year

Office

Size-Weighted Average PPSF

Industrial

Size-Weighted Average PPSF

Retail

Size-Weighted Average PPSF

Weighted Average Cap Rate =

Apartment

Size-Weighted Average PPU

Hotel

Size-Weighted Average PPU

Metro Cap Rate Comparison* Current Quarter

Office

vs. Midwest Region

vs. Nation

Retail

vs. Midwest Region

vs. Nation

*Comparison of current quarter weighted average capitalization rates.Source: RERC.

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122

St. Louis Transaction Breakdown (7/1/07 - 6/30/08)Office Industrial Retail Apartment Hotel

< $5 MillionVolume (Mil) $55 $127 $78 $37 –

Size Weighted Avg. ($ per sf/unit) $85 $50 $121 $31,013 –

Price Weighted Avg. ($ per sf/unit) $156 $75 $177 $34,677 –

Median ($ per sf/unit) $93 $60 $106 $36,000 –

> $5 MillionVolume (Mil) $966 $306 $605 $72 $188

Size Weighted Avg. ($ per sf/unit) $136 $54 $192 $59,749 $97,551

Price Weighted Avg. ($ per sf/unit) $157 $69 $209 $68,979 $122,725

Median ($ per sf/unit) $145 $53 $159 $57,019 $78,022

All TransactionsVolume (Mil) $1,021 $433 $684 $109 $199

Size Weighted Avg. ($ per sf/unit) $132 $53 $180 $45,387 $90,634

Price Weighted Avg. ($ per sf/unit) $157 $71 $205 $57,265 $118,408

Median ($ per sf/unit) $124 $59 $119 $36,667 $68,973

Capitalization Rates (All Transactions)Weighted Average (%) 7.7 – 7.2 – –

Median (%) 5.8 – 7.8 – –Source: RERC.

St. Louis

HistoricalMedianPriceperSquareFoot(12monthtrailing)–OFFICE

HistoricalMedianPriceperSquareFoot(12monthtrailing)–RETAIL

Please note that in order to more accurately reflect 12-month trail-ing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.

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123

Demographics & Economics

Population Unemployment Rate (June 2008)

Toledo MSA 666,135 Toledo2 7.5%

Toledo Growth1 0.08% Ohio2 6.7%

National Growth1 1.23% National2 5.5%

Household Income & Value

Per Capita Income $26,677 2008 Households 259,973

1-year Job Growth – Household Growth 0.24%

1-year Job Additions – Median Home Price $113,796

Major Employers

St. Vincent Mercy Medical Center

Toledo Hospital

Bowling Green State University

Daimler Chrysler Corp.

University of ToledoSources: Bureau of Labor Statistics, NAR, STDB Online.“Home Price Analysis Report for Toledo Region – 2007” ©2007 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 (2007-2012). 2Rates are non-seasonally adjusted.

Noteworthy Transactions

Sale Date Sale Price Sq. Ft./Units PPSF/PPU

Office

1656 Henthorne Dr. 4-08 $2,637,500 21,738 $121

4447 Monroe St. 4-08 $2,265,000 24,646 $92

Industrial

666 D St. 4-08 $6,300,000 155,160 $41

2449 Hill Ave. 4-08 $875,000 20,000 $44

Retail

Steve & Barrys 5-08 $6,400,000 103,161 $62

Talmadge Town Center 5-08 $6,500,000 18,560 $350

Apartment

Quail Hollow at the Lakes 4-08 $13,837,500 200 $69,188

4224 W Central Ave. 4-08 $950,000 30 $31,667Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.

Tole

do Metro Trend Analysis Last

QuarterPrevious

Year

Office

Size-Weighted Average PPSF

Industrial

Size-Weighted Average PPSF

Retail

Size-Weighted Average PPSF

Apartment

Size-Weighted Average PPU

Hotel

Size-Weighted Average PPU

Metro Cap Rate Comparison* Current Quarter

Apartment

vs. Midwest Region

vs. Nation

*Comparison of current quarter weighted average capitalization rates.Source: RERC.

Market Construction/Redevelopment Activity

Property Type

New(N)/Refurbished(R)

Total Sq. Ft./Units

Estimated Delivery

Fed Ex Hub-Perrysburg Township Industrial N 400,000 2009

GM Powertrain Facility Industrial N 400,000 2009Sources: CBRE, RE Business.

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124

Toledo Transaction Breakdown (7/1/07 - 6/30/08)Office Industrial Retail Apartment Hotel

< $5 MillionVolume (Mil) $18 $13 $21 $17 –

Size Weighted Avg. ($ per sf/unit) $78 $36 $69 $34,806 –

Price Weighted Avg. ($ per sf/unit) $87 $45 $103 $37,220 –

Median ($ per sf/unit) $77 $35 $80 $31,964 –

> $5 MillionVolume (Mil) $101 – – $107 –

Size Weighted Avg. ($ per sf/unit) $66 – – $68,534 –

Price Weighted Avg. ($ per sf/unit) $111 – – $74,272 –

Median ($ per sf/unit) $94 – – $68,531 –

All TransactionsVolume (Mil) $119 $19 $28 $124 $16

Size Weighted Avg. ($ per sf/unit) $67 $38 $67 $60,580 $40,442

Price Weighted Avg. ($ per sf/unit) $108 $43 $93 $69,252 $45,160

Median ($ per sf/unit) $77 $35 $78 $44,395 $40,036

Capitalization Rates (All Transactions)Weighted Average (%) – – – 7.1 –

Median (%) – – – 6.4 –Source: RERC.

Toledo

HistoricalMedianPriceperSquareFoot(12monthtrailing)–OFFICE

HistoricalMedianPriceperSquareFoot(12monthtrailing)–RETAIL

HistoricalMedianPriceperSquareFoot(12monthtrailing)–INDUSTRIAL

Please note that in order to more accurately reflect 12-month trail-ing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.