Triad Office Market

• Total Office Market: 27, 467,542 • Total Sq. Ft. Vacant: 5,264,359 • Vacancy Rate 19.2%• Forsyth: 18.8%/Guilford 21%

• Average Rental Rate: $15.80• Average Class A Rental Rate: $17.65• Net Absorption YTD: -229,284• 36,000 sq. ft. under construction

Industrial Market

Warehouse Market: 54,404,184 Total Sq. Ft. Vacant: 12,312,107 Vacancy Rate: 22.6% Average Asking Rent: $3.49 Sq. ft. Under Construction: 301,910 Net Absorption YTD: -121,347 Over 8,000,000 sq. ft. vacant in

buildings over 100,000 sq. ft.

Industrial Market

Flex Market: 13,019,283 Total Vacant Sq. Ft.: 2,300,783 Vacancy Rate: 17.7% Average Asking Rent: $5.60 Under Construction: 16,200 Net Absorption YTD: -107,201

Retail

Total Retail Market: 36,617,044 Total Sq. Ft. Vacant: 10.8% Average Asking Rent: $16.12 Sq. Ft. Under Construction: 379,000 Net Absorption: -159,138 Largest new retail is the 312,000 sq.

ft. Tanger Factory Outlet in Mebane

Multifamily

Total # of Units: 55,576 # Vacant: 7,745 Vacancy Rate: 13.9%-increased from

11.6% in September 2008 2007-2009- 4300 new units with 791

absorbed, resulting in a 6% increase in vacancy

Construction has slowed, with only 665 units under construction.

Investment Sales

What is a market CAP rate? Equity requirements are increasing

Walgreen’s no cash developer now needs $1,300,000

CAP rates are rising for most product types Exceptions are in areas with barriers to entry

Value oriented purchasers are looking at long term potential

Lots of money on the sidelines waiting on the bottom

Land

Is there a market for Land? Public Facilities-schools, fire stations, parks

Borrowing money on Dirt Cash or owner paper

Residential Land Demand Lot sales at low numbers in select markets No townhome construction Equity requirements have slowed demand

for apartment land

Land

Office Site Demand Owner/Users in the market-particularly

medical Commercial Site Demand

Fast Food Convenience Stores Self Storage Drug store demand in targeted areas at

reduced price Demand from Anchor retailers will not

return until at least 2012