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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 Gross

Toledo 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



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

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



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.

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Also following national trends, the Midwest region’s office sector is seeing the highest dollar volume of sales, while the Midwest region’s 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.

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OfficePropertySector



$40

$112

$184

$256

$328

$400

Price-Weighted Average PPSF

Toled

o

St. Lou

is

Omaha

Minnea

polis

Milwau

kee

Kansa

s City

Indian

apoli

s

Detroit

Columbu

s

Clevela

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Cincinn

ati

Chicag

o

National Price-Weighted Average PPSF

RERC Price-Weighted Avg. PPSF - 1Q 2007

5%

6%

7%

8%

9%Weighted Avg. Cap Rate

Omaha

Minnea

polis

Milwau

kee

Kansa

s City

Indian

apoli

s

Detroit

Columbu

s

Clevela

nd

Cincinn

ati

Chicag

o

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 8.0

Columbus $376 $120 $88 $77 8.5

Detroit $658 $131 $105 $110 7.7

Indianapolis $692 $125 $107 $81 7.3

Kansas 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

$112

$184

$256

$328

$400

Size-Weighted Average PPSF

Toled

o

St. Lou

is

Omaha

Minnea

polis

Milwau

kee

Kansa

s City

Indian

apoli

s

Detroit

Columbu

s

Clevela

nd

Cincinn

ati

Chicag

o

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.

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Midwest



IndustrialPropertySector

$30

$50

$70

$90

$110

Price-Weighted Average PPSF

Toled

o

St. Lou

is

Omaha

Minnea

polis

Milwau

kee

Kansa

s City

Indian

apoli

s

Detroit

Columbu

s

Clevela

nd

Cincinn

ati

Chicag

o



6%

7%

8%

9%


Minnea

polis

Milwau

kee

Kansa

s City

Indian

apoli

s

Detroit

Columbu

s

Clevela

nd

Cincinn

ati

Chicag

o



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

Volume (millions)




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

Cincinnati $297 $62 $47 $39 8.3

Cleveland $490 $51 $43 $37 7.3

Columbus $780 $48 $37 $39 7.8

Detroit $468 $70 $53 $51 9.8

Indianapolis $226 $53 $42 $40 6.6

Kansas 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


$30

$50

$70

$90

$110Size-Weighted Average PPSF

Toled

o

St. Lou

is

Omaha

Minnea

polis

Milwau

kee

Kansa

s City

Indian

apoli

s

Detroit

Columbu

s

Clevela

nd

Cincinn

ati

Chicag

o



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.

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Midwest



RetailPropertySector

$60

$120

$180

$240

$300

$360

$420 Price-Weighted Average PPSF

Toled

o

St. Lou

is

Omaha

Minnea

polis

Milwau

kee

Kansa

s City

Indian

apoli

s

Detroit

Columbu

s

Clevela

nd

Cincinn

ati

Chicag

o



5.0%

5.7%

6.4%

7.1%

7.8%

8.5%Weighted Avg. Cap Rate

St. Lou

is

Omaha

Minnea

polis

Milwau

kee

Kansa

s City

Indian

apoli

s

Detroit

Columbu

s

Clevela

nd

Cincinn

ati

Chicag

o



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

Volume (millions)




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

Cincinnati $201 $147 $87 $59 7.0

Cleveland $856 $153 $121 $84 7.1

Columbus $467 $193 $124 $108 8.1

Detroit $320 $197 $116 $122 7.1

Indianapolis $156 $196 $127 $143 7.5

Kansas 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


$60

$120

$180

$240

$300

$360

$420 Size-Weighted Average PPSF

Toled

o

St. Lou

is

Omaha

Minnea

polis

Milwau

kee

Kansa

s City

Indian

apoli

s

Detroit

Columbu

s

Clevela

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Cincinn

ati

Chicag

o



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

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Midwest



ApartmentPropertySector

$30,000

$60,000

$90,000

$120,000

$150,000

$180,000

$210,000

Price-Weighted Average PPU

Toled

o

St. Lou

is

Omaha

Minnea

polis

Milwau

kee

Kansa

s City

Indian

apoli

s

Detroit

Columbu

s

Clevela

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Cincinn

ati

Chicag

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National Price-Weighted Average PPU

RERC Price-Weighted Avg. PPU - 1Q 2007

4%

5%

6%

7%

8%

9%


Toled

o

St. Lou

is

Minnea

polis

Milwau

kee

Kansa

s City

Indian

apoli

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Detroit

Columbu

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Clevela

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Cincinn

ati

Chicag

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

Volume (millions)

Price-Weighted Average ($/unit)

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


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 8.9

Columbus $303 $49,308 $43,507 $43,370 7.1

Detroit $778 $66,130 $48,562 $45,839 7.0

Indianapolis $398 $72,184 $55,755 $43,990 6.9

Kansas 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

$60,000

$90,000

$120,000

$150,000

$180,000

$210,000Size-Weighted Average PPU

Toled

o

St. Lou

is

Omaha

Minnea

polis

Milwau

kee

Kansa

s City

Indian

apoli

s

Detroit

Columbu

s

Clevela

nd

Cincinn

ati

Chicag

o

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.

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Midwest



HotelPropertySector

$30,000

$160,000

$290,000

$420,000

$550,000

$680,000

$810,000Price-Weighted Average PPU

St. Lou

is

Minnea

polis

Kansa

s City

Indian

apoli

s

Detroit

Columbu

s

Clevela

nd

Chicag

o

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



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

Volume (millions)

Price-Weighted Average ($/unit)

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


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 8.4

Indianapolis $172 $126,275 $115,599 $125,990 9.2

Kansas 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

$30,000

$160,000

$290,000

$420,000

$550,000

$680,000

$810,000Size-Weighted Average PPU

St. Lou

is

Minnea

polis

Kansa

s City

Indian

apoli

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Detroit

Columbu

s

Clevela

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Chicag

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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.

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Midwest


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


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



Median $161 $60 $189 $83,016 $124,627

All TransactionsVolume (Mil) $16,183 $2,524 $2,942 $3,579 $2,192



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

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


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

RERC’s 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.

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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.


Cincinnati

95


Cincinnati MSA 2.1 million Cincinnati 4.8%

Cincinnati Growth1 0.87% Ohio 5.5%



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


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.


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.


Property Type


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


2011 proj.2006 est.20001990

Cincinnati Population Growth

Cincinnati Unemployment Rate


Source: STDB Online


Cincinnati

96

4%

5%

6%

7%

8%

9%CincinnatiMidwestNational

ApartmentRetailIndustrialOffice

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


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 –



Median $99 $55 $164 $49,638 –

All TransactionsVolume (Mil) $565 $297 $201 $285 $4



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


$90

$180

$270

$360

$450CincinnatiMidwestNational



$50,000

$90,000

$130,000

$170,000

$210,000

$250,000CincinnatiMidwestNational

Apartment


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.

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


Cleveland

97


Cleveland MSA 2.2 million Cleveland 5.6%

Cleveland Growth1 0.10% Ohio 5.5%




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


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.


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: STDB Online


Cleveland

98

4%

5%

6%

7%

8%

9%ClevelandMidwestNational


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




Median $70 $35 $73 $33,750 –

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



Median $125 $52 $108 $48,181 –




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




$90

$180

$270

$360

$450ClevelandMidwestNational



$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000ClevelandMidwestNational

HotelApartment


Given the area’s 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.

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


Columbus

99


Columbus MSA 1.8 million Columbus 4.5%

Columbus Growth1 1.79% Ohio 5.5%






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.


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.


Property Type


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


2011 proj.2006 est.20001990

Columbus Population Growth

Columbus Unemployment Rate


Source: STDB Online


Columbus

100

4%

5%

6%

7%

8%

9%ColumbusMidwestNational


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




Median $70 $35 $77 $37,667 –




Median $95 $41 $146 $47,788 $66,014




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




$90

$180

$270

$360

$450ColumbusMidwestNational



$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000ColumbusMidwestNational

HotelApartment


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.

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

Detroit

101


Detroit MSA 4.6 million Detroit 6.9%

Detroit Growth1 0.40% Michigan 7.2%






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.


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.


Property Type


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


2011 proj.2006 est.20001990

Detroit Population Growth

Detroit Unemployment Rate


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


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




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




Median $113 $63 $149 $45,839 $110,132




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




$90

$180

$270

$360

$450DetroitMidwestNational



$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000DetroitMidwestNational

HotelApartment


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.

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Indianapolis

103


Indianapolis MSA 1.7 million Indianapolis 4.3

Indianapolis Growth1 1.75% Indiana 5.0

National Growth1 1.30% National 4.3



3-year Job Growth2 3.5% Household growth1 1.79%


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.


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.


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


2011 proj.2006 est.20001990

Indianapolis Population Growth

Indianapolis Unemployment Rate


Source: STDB Online


Indianapolis

104

4.0%

5.5%

7.0%

8.5%

10.0%IndianapolisMidwestNational


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




Median $67 $34 $78 $29,143 –




Median $105 $44 $190 $57,408 $125,990




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




$90

$180

$270

$360

$450IndianapolisMidwestNational



$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000IndianapolisMidwestNational

HotelApartment


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.

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Kansas City

105


Kansas City MSA 2.0 million Kansas City 4.9%

Kansas City Growth1 1.07% Missouri 5.0%






Major Employers

Kansas City International Airport

Attic Salt Greetings, Inc.

Hallmark Cards, Inc.

St. Luke’s 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.


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


2011 proj.2006 est.20001990

Kansas City Population Growth

Kansas City Unemployment Rate


Source: STDB Online


Kansas City

106

4.0%

5.5%

7.0%

8.5%

10.0%Kansas CityMidwestNational


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




Median $89 $43 $61 $34,938 –

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



Median $90 $52 $122 $66,412 $72,529

All TransactionsVolume (Mil) $1,264 $471 $764 $568 $54



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




$90

$180

$270

$360

$450Kansas CityMidwestNational



$0

$100,000

$200,000

$300,000

$400,000Kansas CityMidwestNational

HotelApartment


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 area’s 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.

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Milwaukee

107


Milwaukee MSA 1.5 million Milwaukee 5.2%

Milwaukee Growth1 0.46% Wisconsin 5.6%






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.


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.


Property Type


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


2011 proj.2006 est.20001990

Milwaukee Population Growth

Milwaukee Unemployment Rate


Source: STDB Online


Milwaukee

108

4.0%

5.5%

7.0%

8.5%MilwaukeeMidwestNational


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




Median $54 $38 $93 $44,688 –




Median $159 $49 $118 $70,126 –




Median $75 $40 $101 $46,389 –




$90

$180

$270

$360

$450MilwaukeeMidwestNational



$0

$50,000

$100,000

$150,000

$200,000

$250,000MilwaukeeMidwestNational

Apartment


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.

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Minneapolis

109


Minneapolis MSA 3.3 million Minneapolis 4.4%

Minneapolis Growth1 1.64% Minnesota 4.9%






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.


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.


Property Type


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


2011 proj.2006 est.20001990

Minneapolis Population Growth

Minneapolis Unemployment Rate


Source: STDB Online


Minneapolis

110

4.0%

5.5%

7.0%

8.5%MinneapolisMidwestNational


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




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

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



Median $97 $70 $155 $94,219 $72,643

All TransactionsVolume (Mil) $2,258 $600 $1,959 $793 $212



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




$90

$180

$270

$360

$450MinneapolisMidwestNational



$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000MinneapolisMidwestNational

HotelApartment


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.

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Vacancy =Inventory Expected 1-Year Rents



Omaha

111


Omaha MSA 834,000 Omaha 3.2%

Omaha Growth1 1.36% Nebraska 2.9%






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.


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


2011 proj.2006 est.20001990

Omaha Population Growth

Omaha Unemployment Rate


Source: STDB Online


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 –



Median $94 $37 $50 $30,480 –


Size-Weighted Avg. $129 $35 $156 – –

Price-Weighted Avg. $157 $109 $182 – –

Median $150 $31 $155 – –




Median $115 $36 $63 $31,316 –

Capitalization Rates % (All Transactions)Weighted Average 7.4 – 7.0 – –

Median 7.4 – 7.0 – –Source: RERC


$90

$180

$270

$360

$450 Omaha

MidwestNational



$0

$50,000

$100,000

$150,000

$200,000

$250,000OmahaMidwestNational

Apartment


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.

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Vacancy Expected 1-Year Rents



St. Louis

113


St. Louis MSA 2.8 million St. Louis 5.0%

St. Louis Growth1 0.71% Missouri 5.0%






Major Employers

Barnes-Jewish Hospital

St. Louis University

U.S. Bank

U.S. Postal Service

St. John’s 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.


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.


Property Type


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


2011 proj.2006 est.20001990

St. Louis Population Growth

St. Louis Unemployment Rate


Source: STDB Online


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




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

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



Median $128 $48 $156 $51,944 $97,944

All TransactionsVolume (Mil) $1,453 $386 $461 $426 $372



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


$90

$180

$270

$360

$450St. LouisMidwestNational



$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000St. LouisMidwestNational

HotelApartment


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.

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Toledo

115


Toledo MSA 666,000 Toledo 6.7%

Toledo Growth1 0.10% Ohio 5.5%






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.


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


2011 proj.2006 est.20001990

Toledo Population Growth

Toledo Unemployment Rate


Source: STDB Online


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 –



Median $92 $31 $87 $30,000 –


Size-Weighted Avg. – – – $57,199 –

Price-Weighted Avg. – – – $85,292 –

Median – – – $52,481 –




Median $92 $32 $88 $30,990 –

Capitalization Rates % (All Transactions)Weighted Average – – – 9.0 –

Median – – – 8.9 –Source: RERC


$90

$180

$270

$360

$450ToledoMidwestNational



$50,000

$90,000

$130,000

$170,000

$210,000

$250,000ToledoMidwestNational

Apartment


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.

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Changes from Previous QuarterOffice

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