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  • 1. 3000 Dundee Rd Northbrook, IL 60062
  • 2. Contents 3 Reis Observer Metro Analysis Section 1 - Current Metro Rent Details 14 Section 2 - Rent Growth Comparisons 14 Section 3 - Current Metro Vacancy Details 15 Section 4 - Vacancy Rate Comparisons 15 Section 5 - Metro Inventory Detail 16 Section 6 - Inventory Growth Comparison 16 Section 7 - Construction/Absorption Change 17 Section 8 - Submarket New Construction Project Tally 18 Section 9 - New Construction Listing 19 Section 10 - Market Data by Building Class - Class A Properties 26 Section 11 - Market Data by Building Class - Class B/C Properties 28 Section 12 - Submarket Snapshot 30 Section 13 - Economic and Demographic Trends 31 Section 14 - Submarket Boundaries 32 Section 15 - Metro Data 33 Submarket Analysis Section 16 - Current Submarket Rent Details 35 Section 17 - Rent Growth Comparisons 35 Section 18 - Current Submarket Vacancy Details 36 Section 19 - Vacancy Rate Comparisons 36 Section 20 - Submarket Inventory Detail 37 Section 21 - Inventory Growth Comparison 37 Section 22 - Construction/Absorption Change 38 Section 23 - Market Data by Building Class - Class A Properties 39 Section 24 - Market Data by Building Class - Class B/C Properties 40 Section 25 - Submarket Data 41 Rent Comparables Sale Comparables
  • 3. Because Reis Observers are narrative reports that present a thoughtful analysis of Reis findings in a given metro, our editorial staff can not begin writing them until the Reis quartely data is released. Therefore the Observers are published on a rolling schedule throughout the quarter and may contain data that predates the rest of this Asset Advisor by one quarter. Reis Observer
  • 4. Reis Observer Office - Asset Advisor Reis Observer CHICAGO OFFICE MARKET Q2 2006 Metro: Chicago Q2 2006 THE ECONOMY Employment: Broad shoulders. Four successive years of net job losses finally were relieved in 2005 when, according to data provided by the U.S. Department BLS reports a seasonally • of Labor’s Bureau of Labor Statistics (BLS), average nonagricultural unadjusted unemployment rate of employment in the Chicago area Metropolitan Division grew by 1.0%, 4.6% in July for the Chicago adding 36,800 jobs net to the local economy. It is a modest growth rate MSA. by U.S. norms but is not insignificant by Chicago standards (year-over- year increases over the eight-year period preceding the recent recession Average nonagricultural • averaged 1.7%). The pace now has picked up—slightly. Non-farm employment in MSA was up employment as of June 2006 was up 1.2% (44,600 jobs) from 12 months 1.2% year over year in June, according to data provided by the prior. But dramatic improvement is not expected. While the economy is BLS. broad and diverse, there is no dynamic growth engine that will shake it loose from the pattern of slow growth. And the Metropolitan Division’s Economy.com reports a second • large manufacturing sector, accounting for about 400,000 jobs, continues quarter 2006 average household to struggle. While its losses were the smallest of the series, 2005 was the income of $111,833 for seventh year in succession to see net employment losses in this sector. Chicago. By contrast, an And the losses continue. Employment in Manufacturing as of June 2006 average of $108,545 and was down 1.7% (6,900 jobs) from the preceding June. The economy’s $101,810 are reported for the overall growth, accordingly, derives from the greater vitality of other top metros in the nation and sectors (substantial increases are indicated for the professional and Midwestern region, respectively. business services and educational and health services segments, for example). Stability, thus, is a chief attribute. The economy is expected to gain additional leverage over time from the multi-year, $15 billion expansion underway at O’Hare International Airport, which Marcus & Millichap Real Estate Investment Brokerage Company expects will generate 90,000 to 195,000 jobs by completion. The unemployment rate as of July was 4.6%, down from 6.4% twelve months earlier. Population growth, another factor in the economy’s typically slow growth, remains sluggish: the 0.6% annual average increase indicated by Chicago Employment by Sector Economy.com for the past five years leaves just enough room for modest Manufacturing Education & net in-migration. Still, the average annual numerical gain, at about 46,000, 10% Health Svc. Constr, Trans, represents significant demand for goods, services and real estate product. 13% Util, Nat. Rsrce Thus, while Chicagoland growth overall is slow, there are pockets of 9% Government vitality. Residential development, accordingly, continues, expanding ever Wholesale 13% 5% farther into increasingly remote suburban areas, particularly those in the Leisure & Information far west and far southwest, and downtown Chicago has seen a remarkable Hospitality 2% 9% surge in condominium development and conversion over the past few Finance 8% years. That said, home prices, holding to the Midwestern model, have Prof. & Retail Trade & shown only moderate increases in the recent term; the local market has Business Svc. Consumer Svc. 16% 15% not participated in the huge run-ups that have captured many of the Source: BLS 1 Copyright 2006 Reis, Inc. Page 3
  • 5. Reis Observer Office - Asset Advisor Reis Observer CHICAGO OFFICE MARKET Q2 2006 Metro: Chicago Q2 2006 markets on the nation’s east and west coasts. The National Association of Realtors reports a second quarter metro area single-family home resale price (preliminary) of $278,500, up 4.9% over 12 months. OUTLOOK Chicago Non-Farm Employment Growth 100 3% The broad shoulders of the local economy, its lack 2% Jobs Added (000's) 50 of high-growth drivers, and the good health of its Rate of Growth 1% service sectors suggest that the recently regained 0% 0 stability will continue, as long as the national -1% economy can lend support. In the meantime, -50 -2% expanding employment and ongoing population -100 -3% growth, particularly in selected suburban areas and 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 downtown, should fuel demand for real estate of all Jobs Added Rate of Growth types. Source: BLS Population Trends 1.8% Population Growth (% change) 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 Chicago Midwestern US US Source: Economy.com Office Employment Trends Office Employment (% change) 5% 4% 3% 2% 1% 0% -1% -2% -3% 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 Chicago Midwestern US US Source: Economy.com 2 Copyright 2006 Reis, Inc. Page 4
  • 6. Reis Observer Office - Asset Advisor Reis Observer CHICAGO OFFICE MARKET Q2 2006 Metro: Chicago Q2 2006 THE REAL ESTATE MARKET Special Real Estate Factors:: In the space of three years, from year-end 2000 to the end of 2003, the Chicago office market, undermined by the collision of robust Grubb & Ellis Company recently • development with precipitous negative absorption, added 1,000 basis reported that landlords marketing points to its vacancy rate and 23.4 million square feet to its stock of metro Chicago’s abundant stock of Class B space soon will be faced vacant space. High vacancy and other symptoms of softness lingered for with a decision. “If they are a while thereafter, and only last year did the market begin to show signs of willing to spend some money on recovery, which now are multiplying. While development remains active, tenant improvements and offer demand volumes have soared to their highest level in years, finally generous lease packages,” explains surpassing new supply. Vacancy, while still elevated, is moving downward the firm, “they will be able to decisively, and growth has returned to rents. The local economy, creating attract tenants.” Those reluctant jobs in the business services and financial sectors, provides the to make such decisions will see foundation. That said, however, large volumes of vacant space still damp their vacancies linger, that source this market, even as a new development cycle is rearing its head. cautions. Marking Los Angeles-based OCCUPANCY • BentleyForbes’s entry into the Chicago market—as well as its The latest dramatic Office Vacancy Trends largest acquisition to date—that cycle of development privately held investment company 25% and the simultaneous spent approximately $470 descent of absorption 20% Average Vacancy million, or about $214 psf, to into negative territory 15% acquire the two-building (41 and resulted in vacant 64 stories, respectively), 2.2- 10% above 19.0% in million-square-foot Prudential 5% 2004—as in turn the Plaza office campus in downtown volume of vacant 0% Chicago’s East Loop adjacent to 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 stock rose above 43.5 Millennium Park. The site Chicago Midwestern US US million square feet (an includes the original Prudential Source: Reis, Inc. entire city’s worth of Building, located at 130 E. Randolph Street and completed in empty office space). But the combination of revived absorption and the 1995, and Two Prudential Plaza removal of stock (mainly lower-tier) from the market for conversion to at 180 N. Stetson Ave., other uses reversed the trend in 2005. By the end of that year the vacancy completed in 1990. San rate had slipped to 18.7%. Improvement now has become more earnest. Francisco-based Shorenstein With demand running strong, the rate had declined to 17.9% by mid-year Properties was the seller, which (representing 40.8 million square feet, 17.7 million of which are Class A). according to Crain’s Chicago A decline to 17.4% is anticipated by year-end after which substantial year- Business paid about $182 a over-year decreases will drop the number to 12.6% by the end of 2010, square foot for the property in according to our latest forecast. Occupancy’s recovery has begun: its 2000. According to that source, effects, as detailed below, now extend into the rental and development the complex is about 85% leased. sectors. In July, Jackson, MS-based • Parkway Properties closed its fee simple purchase of the 1.0 million- 3 Copyright 2006 Reis, Inc. Page 5
  • 7. Reis Observer Office - Asset Advisor Reis Observer CHICAGO OFFICE MARKET Q2 2006 Metro: Chicago Q2 2006 Grubb & Ellis sees a similar trend, although its descent timetable lags Reis’s a bit—or according to this source, a vacancy peak of 19.3% was Special Real Estate Factors: reached as recently as third quarter 2005. Since then, the rate has dropped Continued to 17.2%. Julien J. Studley Inc. reports second quarter overall and Class A square-foot, 32-story One Illinois vacancies at 18.3% and 18.4%, each down 50 basis points from a quarter Center office tower at 111 E. prior and each down 130 points year over year. Reis, for its part, puts the Wacker Drive in downtown quarter-end Class A rate at 16.7%, down 220 points over 12 months, as Chicago’s East Loop, Grubb & the volume of vacant stock in this class decreased by about 950,000 square Ellis reported in its second quarter feet. Capital market Updates. Parkway Properties Inc. already SUPPLY AND DEMAND owns Two Illinois Center. The selling price, excluding closing costs Net absorption, after and transfer taxes, was $198 Chicago Office Supply and Demand Trends turning in its first million, or $215 psf (RSF). substantial total last year 10,000 25% According to a company press (1.1 million square feet) is release, “The purchase price 5,000 20% Square Feet (000's) Vacancy Rate represents an estimated 23% expected to soar to 3.4 0 15% discount to current estimated million in 2006, 2 million -5,000 10% replacement cost of $280 RSF. of which had been The property is expected to -10,000 5% accomplished by mid-year. produce an initial unleveraged -15,000 0% While construction, yield or going-in cash 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 dominated by the capitalization rate of Completed Absorbed Vacancy Rate downtown markets, Source: Reis, Inc. approximately 6.3% in the first remains active, the 1.5 million square feet projected to deliver in 2006, twelve months of operations, nearly all of which have already, will amount to only 43% of same-term calculated using first year absorption. Significantly, 2006 will be the first year since 2000 in which estimated net operating income of net absorption exceeds same-year deliveries. That trend should continue. $13.5 million and the total purchase price of $215.4 million.” Reis is forecasting respective net absorption and construction completion The sellers in the deal were totals of 16.6 million and 6.5 million square feet for the four-year span Lincoln Property Co. and Carlyle 2007 through 2010. Also aiding in the recovery of the market is an actual Group. reduction of non-Class A supply due to the conversion of space to other uses. By the firm’s count, Class B-C inventory decreased by 1.8 million Other significant sales include the • square feet last year, with 622,000 additional square feet of such space $300 million purchase by leaving the market during first half 2006. With Class A inventory growing Fremont Realty Capital and by similar amounts, the supply of total existing inventory, now reported at Shorenstein Properties of the 227.8 million square feet, has held roughly steady. Now, however, with 70%-occupied 311 S. Wacker over-supply concerns in the residential condominium market, the Drive building, GlobeSt.com attractiveness of older office buildings to residential developers appears to reported in August 2006 Walton Capital was the seller be on the wane. “Vacancy rates in the Chicago Downtown office market are Further, Grubb & Ellis Company warns of the potential danger of a new decreasing,” stated an executive round of development in the downtown markets: nearly 3 million square with Carlton Advisory. feet, this source notes, are expected to arrive on line in the CBD over the “Currently in tower space—26 4 Copyright 2006 Reis, Inc. Page 6
  • 8. Reis Observer Office - Asset Advisor Reis Observer CHICAGO OFFICE MARKET Q2 2006 Metro: Chicago Q2 2006 next few years (Reis’s research, as referenced in the Submarkets section, also show a heating up of activity downtown). “As tenants leave current Special Real Estate Factors: locations in favor of new construction,” Grubb & Ellis notes, “anticipated Continued future vacancies will temper the pace of recovery.” CB Richard Ellis floors and up—on Wacker Drive, reports current construction at 1.8 million square feet, 1.35 million of rates are at about 7%. That which are downtown and all of which are Class A. Net absorption for the remains true with the 311 latest quarter, meanwhile, is counted by this source at 1.5 million square building; its vacancy remains in feet, about 43% of which is attributed to the CBD markets. Grubb & the top floors.” According to Ellis reports net absorption year-to-date at 3.3 million square feet, GlobeSt.com, “The property, one including 2.2 million downtown. According to Studley, the inventory of of the most high-profile buildings large blocks of space (minimum size 125,000 square feet) has diminished in the Downtown area, had in both the downtown and suburban markets. For the metro area as a languished for several years under whole, this source reports 37 such blocks on the market as of mid-2006, a series of owners and weak down from 50 a year earlier. This progress aside, it should not be market conditions. The purchasers overlooked that the volume of vacancy in these spaces and in the market feel the Chicago market is entering a period of resurgence, with falling as a whole remains considerable. Grubb & Ellis’s admonition respecting a vacancies and rising rents.” new wave of construction in the downtown area should be given serious GlobeSt. reported earlier that consideration. Behringer Harvard REIT I has spent $27.5 million ($192 psf) to RENTS acquire the 35-story 222 S. Riverside Plaza, as well as the While the average Office Rent Trends adjacent three-story Union Station asking lease rate evinced Multiplex at 444 W. Jackson 15% small increases during Blvd., from Beacon Capital 10% the last three quarters of Strategic Partners III, LP. Rent Change last year, 2006 will be 5% the first year since 2000 0% to record a year-over- -5% year increase, which -10% Reis forecasts at 2.5%. 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 Growth returned to the Chicago Midwestern US US average effective rate Source: Reis, Inc. last year, but the small, 0.4% gain was negligible alongside the preceding losses, which also extended back through 2001. But 2006 is expected to grace this rental category with a gain on the order of 3.4%. Rates of year- over-year gain are expected to increase gradually, albeit not steadily, through 2010. Respective asking and effective averages for second quarter 2006 were $25.02 and $20.35 psf, up 0.1% and 0.8% from the preceding quarter. Studley puts second quarter metro area overall and Class A asking averages at $22.87 and $25.15 psf, up 0.6% and 0.3% for the period though down year over year. Reis, for its part, cites a Class A mean of $30.32 psf, down 0.5% for the quarter, up 0.4% over 12 months. According to Grubb & Ellis, the Class A weighted average asking price 5 Copyright 2006 Reis, Inc. Page 7
  • 9. Reis Observer Office - Asset Advisor Reis Observer CHICAGO OFFICE MARKET Q2 2006 Metro: Chicago Q2 2006 increased by nearly $1.00 psf over the past four quarters, as a result mainly of “higher asking rates in new Class A buildings.” SUBMARKETS Downtown Chicago The window of opportunity for recovery of the downtown market • likely will be brief. Just as a massive wave of development finally is ending, a new one is getting underway. “With the addition of new towers in the Loop, landlords are being • forced to make upgrades, and the space being vacated is leaving a big void,” a real estate economist with Property & Portfolio Research informs GlobeSt.com. Fifield Company’s 479,000-square-foot 550 W. Adams project in the • West Loop delivered in June. USG Corporation and Humana are tenants. Occupancy scheduled for third quarter, and CB Richard Ellis puts leasing in the new building at about 76%. Houston-base developer Hines broke ground in July on a 60-story, • 1.5-million-square-foot tower at 300 N. LaSalle in the River North area (a.k.a. Gold Coast), reports GlobeSt.com. Anchor tenant law firm of Kirkland & Ellis has committed to 600,000 square feet in the new building, leaving their space at 200 E. Randolph Drive. Early 2009 delivery is anticipated. Accordingly, notes this source, “Industry experts agree that the tenant is a boon for Hines, but that the Chicago commercial real estate industry could be creating a void by vacating some older buildings.” The 1.2-million-square-foot, 40-story 351 N. Clark Street building • from Mesirow Financial, also in River North, is scheduled to break ground on September 1, reports CB. The firm reports pre-leasing at 75.0%. Hines, reports this source, has proposed a 1.0-million-square-foot • project for 200 N. Riverside Plaza. Fifield Realty has proposed a 37-story, 894,000-square-foot tower at • 601 W. Monroe on what the developer describes as “one of the last great office sites available in the West Loop.” 6 Copyright 2006 Reis, Inc. Page 8
  • 10. Reis Observer Office - Asset Advisor Reis Observer CHICAGO OFFICE MARKET Q2 2006 Metro: Chicago Q2 2006 In August, reports GlobeSt.com, Mills sold “a major portion” of 108 N. • State to Golub & Company. “The deal gives Golub control of an office building that will accommodate WBBM-Channel 2 and two residential towers.” A 1.25-million-square-foot tower is planned for 301 S. Wacker in the • West Loop, reports Reis. With the start of retail construction, development of Mills • Corporation’s $295 million 108 N. State Street (formerly Block 37) mixed-use commercial-residential project in the Loop is moving forward. Plans, reports the Chicago Tribune, include 300,000 square feet of office space. The last wave…. Recent major completions include Hines’s spec • 825,000-square-foot One South Dearborn, anchored by law firm Sidley Austin, which delivered to the Central Loop in December 2005. The $275-million, 52-story, 1.0-million-square-foot 111 S. Wacker • Drive tower from John Buck Company, leased to Deloitte & Touche, Lord, Bissell & Brook, and RR Donnelly, completed construction in the West Loop in June 2005. The building has since sold for a record price of $401 psf. Higgins Development Partners’ $225 million, 1.5-million-square-foot • Hyatt Center at 71 S. Wacker Drive finished construction in July. Reis puts second quarter West Loop vacancy and average asking rent • at 15.7% and $30.69 psf. Net absorption year-to-date is 1.1 million square feet. Central Loop vacancy and average asking rent were 18.5% and $28.00 • psf. Next absorption through the first half of 2006 was 704,000 square feet. Quarter-end River North vacancy and average asking rent were 11.1% • and $23.16 psf. Net absorption through mid-year 2006 was 183,000 square feet. For downtown generally, Studley expects the gradual rise in rents to • become a trend. “Concession packages are beginning to tighten and free rent is on the decline.” 7 Copyright 2006 Reis, Inc. Page 9
  • 11. Reis Observer Office - Asset Advisor Reis Observer CHICAGO OFFICE MARKET Q2 2006 Metro: Chicago Q2 2006 West Suburban Development has slowed markedly in Chicago’s extensive western • suburban areas. But, as in the downtown market, activity is again heating up. In Reis’s suburban West submarket, 6.8 million square feet completed • construction from 1998 through 2004. While only 581,000 square feet delivered during the two-year span • 2003 through 2004, and only 50,000 finished last year, 2007 is expected to produce 1.1 million square feet, (following this year’s 291,000 square feet). In the West, 214,000 square feet completed construction during first • half 2006 in a handful of small projects. The largest (by far) was the 110,000-square-foot installment at Estancia Corporate Center in Burr Ridge, which finished in March. Many projects are on the drawing board in areas including Naperville, • Bolingbrook, Aurora, Burr Ridge, Downers Grove and Lisle. Major proposed projects include new phases totaling 470,000 square • feet for The Corridors complex in Downers Grove. Alter Group is the developer. In the same town, the 250,000-square-foot fifth phase of Highland • Landmark is planned. The second phase of Corporetum Office Tower planned for Lisle • would add 365,000 square feet, while projects planned for Warrenville Road in the same town will, if built, add 581,000 square feet. Studley reports a 105,000-square-foot second quarter lease by Wilson • Sporting Goods at 8770 W. Bryn Mawr Avenue in the O’Hare area. Net absorption year-to-date for the West submarket calculates at • negative 82,000 square feet. The net for the year all told, however, is forecast at positive 336,000 square feet. The average asking rent for the West is given as $21.38 psf, up 0.8% • over the quarter. 8 Copyright 2006 Reis, Inc. Page 10
  • 12. Reis Observer Office - Asset Advisor Reis Observer CHICAGO OFFICE MARKET Q2 2006 Metro: Chicago Q2 2006 Northwest Suburban / North Suburban From 1998 through 2002, developers added more than 5.6 million • square feet of new multi-tenant space to the suburban Northwest submarket. Thereafter, the pace slowed. In 2005, the annual completion total fell to lower than 100,000 square feet. Multi-tenant construction, however, is picking up. The North’s recent profile is similarly cyclical. Construction dropped • to nearly nothing last year and only 46,000 square feet will deliver in 2006. But the 2007-2008 period is expected to see the completion of 482,000 square feet. In Lake Forest (in Reis’s North submarket), Opus North has • commenced construction of the $35-million, 160,000-square-foot, speculative Class A Landmark II project on S. Sanders Road, reported the Chicago Daily Herald in July. The developer expects completion in July 2007. Also in Lake Forest, Duke Realty Corporation will break ground in • October on its 100,000-square-foot West Lake at Conway, a Class A spec office building. “The announcement,” notes GlobeSt, “follows Duke's lease-up of another speculative building in the same park— Cadence at Conway, a 138,000-square-foot office development,” leased to tenant Hospira Inc. in June. Grubb & Ellis cites the Elgin area in the far northwest as “hot” with • “significant activity along I-90m between Route 31 and Randall Road,” due to “tremendous growth in Kane County.” Komatsu America Corporation has moved its headquarters to Rolling • Meadows in the Northwest, reported GlobeSt. at the end of July. The firm now occupies 105,437 square feet in Prime Group Realty Trust’s 280,000-square-foot Tower 1 at Continental Towers, located at 1701 Golf Road. The 911,000-square-foot Continental Towers complex is now 92% leased, this source reports. In the Schaumburg area, Citigroup moved into 177,000 square feet • during second quarter. Grubb & Ellis characterizes the deal as “the largest suburban office lease year-to-date.” 9 Copyright 2006 Reis, Inc. Page 11
  • 13. Reis Observer Office - Asset Advisor Reis Observer CHICAGO OFFICE MARKET Q2 2006 Metro: Chicago Q2 2006 Vacancies in the North and Northwest remain elevated at 17.0% and • 19.7%. Respective North and Northwest average asking lease rates are given as $22.28 and $21.00 psf. Year-to-date net absorption totals through mid-year are reported at • negative 238,000 square feet for the North and positive 426,000 for the Northwest. OUTLOOK The market has been staging a convincing recovery from the severe imbalance of supply to demand that fell upon it post-2000. Although that recovery is not complete, a new cycle of development, while not as energetic as the previous one, now poses material concern. Much will depend on the local economy, which at the moment is doing well. Reis expects demand to maintain its recently regained lead over new supply, and barring an unexpected shake-up, vacancy should continue to decrease over the next several years while landlords enjoy higher rates of rental growth and relaxation of concessions. • For additional metro and submarket level information on the top 80 markets for the four principal property types, visit www.reis.com or call Reis at: (800) 366-REIS. Unless otherwise indicated, economic and demographic data provided by Economy. com 10 Copyright 2006 Reis, Inc. Page 12 Publication Date: September 2006 © 2006 Reis, Inc.
  • 14. Metro Analysis
  • 15. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Section 1 - Current Metro Rent Details Asking Rent by Age Asking Rent Distribution Asking Rent Growth Rate Distribution Low 25% Mean Median 75% High Low 25% Mean Median 75% High Year Built Rent Before 1970 $23.05 $14.03 $20.08 $25.24 $24.86 $29.73 $39.74 - 5.0% - 0.1% 0.9% 0.9% 2.5% 8.1% 1970-1979 $24.79 511 633 510 1980-1989 $25.48 Number of Properties Number of Properties 1990-1999 $28.59 354 After 1999 $30.10 All $25.24 313 308 As of 09/30/06 184 178 103 113 107 53 52 48 22 15 Under $17.25 $20.46 $23.67 $26.88 $30.09 $33.30 $36.51 Under - 4.8% - 3.2% - 1.6% 0.0% 1.6% 3.2% 4.8% $17.24 $20.45 $23.66 $26.87 $30.08 $33.29 $36.50 Over - 4.9% - 3.3% - 1.7% - 0.1% 1.5% 3.1% 4.7% Over Negative Growth 515 Positive Growth1237 As of 09/30/06 Qtr Ending 09/30/06 Section 2 - Rent Growth Comparisons Asking Rent Growth Quarterly Annualized 3Q06 2Q06 YTD Avg 1 Year 3 Year 5 Year 5 Yr Forecast Chicago 0.9% 0.1% 0.6% - 0.1% - 1.4% - 1.3% 2.7% Midwest 0.4% 0.1% 0.4% - 0.0% - 1.0% - 1.0% 2.2% United States 1.8% 1.6% 1.6% 2.6% - 0.6% - 2.1% 3.9% Average over period ending: 09/30/06 06/30/06 09/30/06 12/31/05 12/31/05 12/31/05 12/31/10 Metro Ranks Metro Rank Total Compared to: Metros 3Q06 2Q06 YTD 1 Year 3 Year 5 Year 5 Yr Forecast Midwest 13 6 9 5 9 12 12 2 United States 75 50 67 55 68 65 65 50 Asking Rent Growth Rate Trends and Forecast % 6.0 4.0 Chicago 2.0 Midwest 0.0 US -2.0 -4.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Period ending 12/31/10 Copyright 2006 Reis, Inc. Page 14
  • 16. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Section 3 - Current Metro Vacancy Details Vacancy Rate By Age Vacancy Rate Distribution Low 25% Mean Median 75% High Year Built Vac. Rate Before 1970 16.0% 0.0% 5.3% 17.6% 13.4% 23.0% 59.4% 1970-1979 19.1% 582 1980-1989 18.8% Number of Properties 1990-1999 17.0% After 1999 15.9% All 17.6% 260 257 As of 09/30/06 201 164 122 93 73 Under 5.1% 10.1% 15.1% 20.1% 25.1% 30.1% 35.1% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Over As of 09/30/06 Section 4 - Vacancy Rate Comparisons Vacancy Rates Quarterly Annualized 3Q06 2Q06 YTD Avg 1 Year 3 Year 5 Year 5 Yr Forecast Chicago 17.6% 18.0% 18.0% 18.9% 18.8% 16.6% 15.5% Midwest 17.7% 17.9% 17.9% 18.5% 18.3% 16.4% 15.4% United States 13.5% 13.8% 13.8% 15.5% 16.0% 14.3% 12.1% Average over period ending: 09/30/06 06/30/06 09/30/06 12/31/05 12/31/05 12/31/05 12/31/10 Metro Ranks Metro Rank Total Compared to: Metros 3Q06 2Q06 YTD 1 Year 3 Year 5 Year 5 Yr Forecast Midwest 13 8 8 9 9 10 10 7 United States 75 64 62 64 63 60 54 62 Vacancy Rate Trends and Forecast % 18.0 Chicago 16.0 Midwest 14.0 US 12.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Period ending 12/31/10 Copyright 2006 Reis, Inc. Page 15
  • 17. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Section 5 - Metro Inventory Detail Inventory By Building Age Office Stock Traits Metro Year Built Percent Low Mean Median High Before 1970 24.0% Size (units) 15,000 129,409 56,000 750,000 1970-1979 18.0% Distance to Highway (miles) 0 0.2 0.2 0.8 1980-1989 36.0% Distance to CBD (miles) 0.2 17.5 19.7 36.2 1990-1999 12.0% Distance to Landmark (miles) 0.4 12.3 11.3 32.3 After 1999 10.0% As of 09/30/06 Landmark =Lake Michigan All 100.0% As of 09/30/06 Current Inventory Level Properties Square Feet 1,828 227,901,000 Average Metro Lease Terms As of 09/30/06 Free Rent Expenses $ Lease Term Leasing Tenant CRD % (mos) (Commercial) (yrs) Commission % Improvements $ - 6.6% 2.4 $10.92 6.1 4.1% $21.32 Section 6 - Inventory Growth Comparison Inventory Growth Rates Quarterly Annualized 3Q06 2Q06 YTD Avg 1 Year 3 Year 5 Year 5 Yr Forecast Chicago - 0.1% 0.3% 0.0% 0.1% 0.1% 0.9% 0.9% Midwest - 0.2% 0.1% - 0.1% - 0.2% 0.1% 0.8% 1.0% United States - 0.1% 0.0% - 0.1% - 0.0% 0.4% 1.1% 1.4% Average over period ending: 09/30/06 06/30/06 09/30/06 12/31/05 12/31/05 12/31/05 12/31/10 Metro Ranks Metro Rank Total Compared to: Metros 3Q06 2Q06 YTD 1 Year 3 Year 5 Year 5 Yr Forecast Midwest 13 7 4 5 5 5 5 8 United States 75 49 17 29 32 43 42 52 Inventory Growth Comparisons and Forecast % 2.5 2.0 Chicago 1.5 Midwest 1.0 US 0.5 0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Period ending 12/31/10 Copyright 2006 Reis, Inc. Page 16
  • 18. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Section 7 - Construction/Absorption Change Construction and Absorption Quarterly 3Q06 2Q06 YTD Avg Sq Ft Con/Abs Sq Ft Con/Abs Sq Ft Con/Abs Sq Ft Built Sq Ft Built Sq Ft Built Absorbed Ratio Absorbed Ratio Absorbed Ratio Chicago 0 613,000 0.0 1,031,000 1,436,000 0.7 451,333 877,000 0.5 Midwest 809,000 574,000 1.4 2,594,000 1,484,000 1.7 1,557,667 658,333 2.4 Average over period ending: 09/30/06 09/30/06 09/30/06 06/30/06 06/30/06 06/30/06 09/30/06 09/30/06 09/30/06 Annualized 1 Year History 3 Year History 5 Year History Sq Ft Con/Abs Sq Ft Con/Abs Sq Ft Con/Abs Sq Ft Built Sq Ft Built Sq Ft Built Absorbed Ratio Absorbed Ratio Absorbed Ratio Chicago 2,291,000 1,130,000 2.0 1,720,000 -161,000 -10.7 3,171,800 -2,729,800 -1.2 Midwest 5,859,000 2,468,000 2.4 5,371,333 -637,667 -8.4 9,408,800 -6,316,000 -1.5 Average over period ending: 12/31/05 12/31/05 12/31/05 12/31/05 12/31/05 12/31/05 12/31/05 12/31/05 12/31/05 Annualized 5 Year Forecast Sq Ft Con/Abs Sq Ft Built Absorbed Ratio Chicago 2,270,800 4,227,200 0.5 Midwest 7,865,400 12,706,600 0.6 Average over period ending: 12/31/10 12/31/10 12/31/10 Construction/Absorption and Vacancy 20 5,000,000 15 Vacancy Rate (%) 0 Square Feet 10 -5,000,000 5 -10,000,000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Vacancy Rate Construction Absorption Period ending 12/31/10 Copyright 2006 Reis, Inc. Page 17
  • 19. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Section 8 - Submarket New Construction Project Tally Sq Ft Sq Ft Sq Ft Sq Ft 2006 - 2008 Cumulative Rank Submarket 2005 2006 2007 2008 Sq Ft Market Share Market share 1 West 50,000 231,324 1,124,821 1,418,857 2775002 42.6% 42.6% 2 West Loop 1,020,000 479,000 0 400,000 879000 13.5% 56.0% 3 NW Suburbs 98,069 0 312,168 417,700 729868 11.2% 67.2% 4 Southwest 0 189,000 92,500 160,000 441500 6.8% 74.0% 5 99-Balance 0 0 0 440,000 440000 6.7% 80.7% 6 City West 0 430,000 0 0 430000 6.6% 87.3% 7 North 16,400 45,800 363,739 0 409539 6.3% 93.6% 8 Central Loop 820,915 0 0 400,000 400000 6.1% 99.8% 9 O'Hare Area 22,000 16,000 0 0 16000 0.2% 100.0% As of 09/30/06, based on actual projects (totals may differ from Reis Metro/SubTrend Futures) Copyright 2006 Reis, Inc. Page 18
  • 20. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Section 9 - New Construction Listing Size (Sq Est. No. Property Name and Address Secondary Type County Submarket Status Ft) Completion HSBC NORTH AMERICA HOLDINGS LAKE 1 Office 99-Balance 440,000 1/2008 2.Under Constr. RIVERWOODS RD @ TOWNE LINE RD METTAWA, IL 60045 BLOCK 37 COOK 2 Office Central Loop 400,000 3/2008 2.Under Constr. 108 N STATE ST @ E RANDOLPH ST/WASHINGTON ST CHICAGO, IL 60602 ONE SOUTH DEARBORN COOK 3 Office Central Loop 820,915 12/2005 1.Complete 1 S DEARBORN ST CHICAGO, IL 60603 WATERVIEW TOWER COOK 4 Office Condominiums Central Loop 215,000 3/2009 2.Under Constr. 111 W WACKER DR @ N CLARK ST CHICAGO, IL 60601 2111 W ROOSEVELT RD COOK 5 Office City West 430,000 4/2006 1.Complete 2111 W ROOSEVELT RD @ N DAMEN AVE CHICAGO, IL 60612 CHATHAM OFFICE CENTER PH II COOK 6 Office NW Suburbs 205,000 4.Proposed 1901 N ROSELLE RD @ I-90 SCHAUMBURG, IL 60195 CROSSROADS OF DARIEN PH II DUPAGE 7 Office NW Suburbs 20,700 3/2008 3.Planned LAMONT RD @ HWY 83 ELMHURST, IL 60126 LAKEWOODS CORPORATE CENTER PH II COOK 8 Office NW Suburbs 150,000 3.Planned 680 E ALGONGUIN RD SCHAUMBURG, IL 60173 PROSPECT POINTE DUPAGE 9 Office Condominiums NW Suburbs 48,000 6/2006 1.Complete PROSPECT AVE @ THORNDALE AVE ITASCA, IL 60143 WOODLAND FALLS PH II LAKE 10 26225 N RIVERWOODS BLV @ W EVERETT RD Office NW Suburbs 156,160 12/2007 2.Under Constr. METTAWA, IL 60045 DEER PARK PH II LAKE 11 21850 LAKE COOK RD @ N HOUGH ST DEER Office NW Suburbs 80,000 8/2007 3.Planned PARK, IL 60010 POPLAR CREEK OFFICE PLAZA II COOK 12 MOONLAKE BLVD. @ HIGGINS RD. HOFFMAN Office NW Suburbs 187,000 10/2008 3.Planned ESTATES, IL 60194 SCHAUMBURG OFFICE CENTER COOK 13 1998 N ROSELLE RD & I 90 SCHAUMBURG, IL Office NW Suburbs 115,000 4.Proposed 60043 HE ESPLANADE OF ALGONQUIN OFFICE PH III MCHENRY 14 2300 S RANDALL RD @ CORPORATE BLVD Office NW Suburbs 60,000 12/2008 3.Planned ALGONQUIN, IL 60102 POPLAR CREEK OFFICE PLAZA III COOK 15 MOONLAKE BLVD @ HIGGINS RD HOFFMAN Office NW Suburbs 187,000 6/2010 4.Proposed ESTATES, IL 60194 LAKE ZURICH PROFESSIONAL CENTER LAKE 16 350 SURRYSE RD @ OLD RAND RD LAKE Medical Office NW Suburbs 32,000 12/2006 2.Under Constr. ZURICH, IL 60047 Copyright 2006 Reis, Inc. Page 19
  • 21. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Size (Sq Est. No. Property Name and Address Secondary Type County Submarket Status Ft) Completion PARCEL 54 LAKE 17 200 LAKEVIEW PKWY @ RTE 60 VERNON Office NW Suburbs 76,008 10/2007 3.Planned HILLS, IL 60061 SUPERIOR AIR GROUND AMBULANCE SERVICE BLDG DUPAGE 18 Office--Owner Occ. NW Suburbs 100,000 10/2006 2.Under Constr. 395 W LAKE ST @ N WALNUT ST ELMHURST, IL 60126 LAKEVIEW BUSINESS CENTER PH II MCHENRY 19 Office NW Suburbs 28,000 10/2005 1.Complete 921 PINGREE RD CRYSTAL LAKE, IL 60014 OAK TRAIL PROFESSIONAL CENTER DUPAGE 20 Office NW Suburbs 17,969 3/2005 1.Complete 260 ARMY TRAIL RD BARTLETT, IL 60103 RANDALL POINT EXECUTIVE CTR KANE 21 Office NW Suburbs 40,100 3/2005 1.Complete 2130 POINT BLVD ELGIN, IL 60123 WILLOW PONDS PROFESSIONAL CENTER LAKE 22 BLDG II Office NW Suburbs 12,000 6/2005 1.Complete 950 S RAND RD LAKE ZURICH, IL 60047 NORTH BARRINGTON OFFICE CONDOS LAKE 23 US HWY 12 @ TIMBER LAKE DR NORTH Office Condominiums NW Suburbs 26,250 7/2005 1.Complete BARRINGTON, IL 60010 BRIARWOOD OFFICE COMPLX BLDG C MCHENRY 24 MERCHANT DR @ HUNTINGTON Office Condominiums NW Suburbs 17,000 5/2006 1.Complete DR/GLENWOOD CT ALGONQUIN, IL 60102 WOODFIELD PRESERVE OFFICE CENTER III COOK 25 Office NW Suburbs 150,000 8/2008 3.Planned 30 N MARTINGALE RD SCHAUMBURG, IL 60173 COMMERCE WOODS BUSINESS CENTER KANE 26 800 COMMERCE PKWY CARPENTERSVILLE, IL Office NW Suburbs 85,544 3.Planned 60110 WESTLAKE AT CONWAY LAKE 27 Office North 100,000 12/2007 3.Planned I-94 @ RTE 60 LAKE FOREST, IL 60045 RIVERWOODS CORPORATE CENTER LAKE 28 LAKE COOK RD @ I-94/SAUNDERS Office North 45,800 5/2006 1.Complete RIVERWOODS, IL 60015 CADENCE AT CONWAY LAKE 29 N FIELD CT @ STATE HWY 60 LAKE FOREST, IL Office North 102,739 5/2007 3.Planned 60045 OPUS LANDMARK OF LAKEFOREST II LAKE 30 Office North 161,000 7/2007 2.Under Constr. 150 SAUNDERS RD LAKE FOREST, IL 60045 LIBERTYVILLE PROFESSIONAL CENTRE LAKE 31 1635 NORTHWIND BLVD @ RTE 45/PETERSON Office North 16,400 11/2005 1.Complete RD LIBERTYVILLE, IL 60048 METROPOLITAN SQUARE COOK 32 S DES PLAINES AVE @ PERRY ST/S RIVER RD Office O'Hare Area 22,000 8/2005 1.Complete DES PLAINES, IL 60016 POINT O'HARE PH II COOK 33 Office O'Hare Area 330,000 2/2009 3.Planned 9550 W HIGGINS RD ROSEMONT, IL 60018 Copyright 2006 Reis, Inc. Page 20
  • 22. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Size (Sq Est. No. Property Name and Address Secondary Type County Submarket Status Ft) Completion TUSCANNY TERRACE COOK 34 6400 N NORTHWEST HWY @ N HARLEM AVE Office O'Hare Area 16,000 12/2006 2.Under Constr. CHICAGO, IL 60631 300 N LASALLE COOK 35 300 N LASALLE BLVD @ KINZIE ST CHICAGO, Office River North 1,300,000 3/2009 2.Under Constr. IL 60610 RIVER NORTH CENTER COOK 36 Office River North 330,000 4.Proposed CLARK ST @ HUBBARD CHICAGO, IL 60610 351 NORTH CLARK BUILDING COOK 37 351 N CLARK ST @ W KINZE ST/DEARBORN ST Office River North 1,300,000 1/2009 3.Planned CHICAGO, IL 60610 WACKER PLAZA COOK 38 401 S WACKER ST @ CONGRESS PKWY Office South Loop 673,000 12/2009 3.Planned CHICAGO, IL 60607 CORPORATE CORRIDORS OF MOKENA PH II WILL 39 Office Southwest 50,000 3/2008 3.Planned W 191ST ST @ S 88TH AVE MOKENA, IL 60488 CORPORATE CORRIDORS OF MOKENA PH III WILL 40 Office Southwest 50,000 8/2007 2.Under Constr. W 191ST ST @ S 88TH AVE MOKENA, IL 60488 BURR RIDGE CORPORATE PARK BLDG II COOK 41 Office Southwest 110,000 3/2008 3.Planned 945 MCCLINTOCK DR LA GRANGE, IL 60527 ORLAND CROSSING COOK 42 W 143RD ST @ S LA GRANGE RD ORLAND Office Southwest 21,000 11/2006 2.Under Constr. PARK, IL 60462 WOODRIDGE COMMERCE CENTER DUPAGE 43 10204-10216 WERCH DR @ WOODWARD AVE Office Southwest 148,000 3/2006 1.Complete WOODRIDGE, IL 60517 CORPORATE CORRIDORS OF MOKENA PH I WILL 44 Office Southwest 22,500 5/2007 3.Planned W 191ST ST @ S 88TH AVE MOKENA, IL 60488 PROVENA MEDICAL BUILDING WILL 45 7000 CATON FARM RD @ COUNTY LINE RD Medical Office Southwest 35,000 5/2006 1.Complete JOLIET, IL 60431 CORPORATE CORRIDORS OF MOKENA PH IV WILL 46 Office Southwest 50,000 7/2009 4.Proposed W 191ST ST @ S 88TH AVE MOKENA, IL 60488 HOMER GLEN PLAZA WILL 47 S BELL RD @ W 159TH ST HOMER GLEN, IL Office Southwest 20,000 9/2007 3.Planned 60491 PRAIRIE CENTER OFFICE COOK 48 450 E ROOSEVELT RD @ S LAKE SHORE DR Office Southwest 20,000 2/2006 1.Complete CHICAGO, IL 60605 CORPORETUM OFFICE TOWER I DUPAGE 49 Office West 189,000 5/2009 3.Planned 1401 CORPORETUM DR LISLE, IL 60532 CORPORETUM OFFICE TOWER II DUPAGE 50 Office West 365,000 3.Planned 1450 CORPORETUM DR LISLE, IL 60532 Copyright 2006 Reis, Inc. Page 21
  • 23. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Size (Sq Est. No. Property Name and Address Secondary Type County Submarket Status Ft) Completion CENTRAL PARK OF LISLE III DUPAGE 51 WARRENVILLE RD & 4 NAPERVILLE RD LISLE, Office West 303,000 4.Proposed IL 60532 280 EAST 22ND STREET DUPAGE 52 Office West 57,000 4.Proposed 280 E 22ND ST LOMBARD, IL 60148 OFFICES AT WYNDHAM LAKE WILL 53 1285 WINDHAM PKWY @ I-55/WEBER RD Office West 47,500 3.Planned ROMEOVILLE, IL 60441 HIGHLAND LANDMARK PH V DUPAGE 54 HIGHLAND PRKWY @ 31ST ST DOWNERS Office West 250,000 2/2008 3.Planned GROVE, IL 60515 ESPLANADE VI DUPAGE 55 3450 LACEY RD @ WOOD CEEK DR DOWNERS Office West 231,000 8/2008 3.Planned GROVE, IL 60515 1247 W 75TH ST DUPAGE 56 1247 W 75TH ST @ PLAINFIELD NAPERVILLE Office West 30,000 3.Planned NAPERVILLE, IL 60540 MCDOWELL POINT DUPAGE 57 1420 W DIEHL RD @ RAYMOND DR/WALL ST Office West 75,857 2/2008 3.Planned NAPERVILLE, IL 60563 4455 WEAVER PKWY @ DIEHL RD DUPAGE 58 Office West 160,000 7/2010 3.Planned WARRENVILLE, IL 60555 2011 YORK CENTER DUPAGE 59 2011 YORK RD @ CLEARWATER DR OAK Office West 187,000 6/2008 3.Planned BROOK, IL 60523 CREEKSIDE CORPORATE CENTER BLDG V WILL 60 REMINGTON BLVD @ QUADRANGLE DR Office West 30,000 3.Planned BOLINGBROOK, IL 60440 EAST WILSON STREET BUSINESS PARK BLDG KANE 61 III Office Condominiums West 15,000 4/2007 3.Planned 1013 E WILSON ST BATAVIA, IL 60510 THE CORRIDORS PH IV DUPAGE 62 FINLEY RD @ BUTTERFIELD RD DOWNERS Office West 235,000 2/2008 3.Planned GROVE, IL 60515 THE CORRIDORS PH V DUPAGE 63 FINLEY RD @ BUTTERFIELD RD DOWNERS Office West 235,000 2/2008 3.Planned GROVE, IL 60515 CORPORETUM OFFICE CAMPUS VII DUPAGE 64 WARRENVILLE RD @ IVANHOE AVE LISLE, IL Office West 125,000 3.Planned 60532 CORPORETUM OFFICE CAMPUS VIII DUPAGE 65 WARRENVILLE RD @ IVANHOE AVE LISLE, IL Office West 100,000 11/2008 3.Planned 60532 CORPORETUM OFFICE CAMPUS IX DUPAGE 66 WARRENVILLE RD @ IVANHOE AVE LISLE, IL Office West 90,000 3.Planned 60532 WHITE OAKS OFFICE PARK DUPAGE 67 Office West 330,000 7/2009 4.Proposed EOLA RD @ I 88 E AURORA, IL 60504 Copyright 2006 Reis, Inc. Page 22
  • 24. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Size (Sq Est. No. Property Name and Address Secondary Type County Submarket Status Ft) Completion MIDPOINT III DUPAGE 68 Office West 47,099 4.Proposed 7145 JANES AVE WOODRIDGE, IL 60517 DODSON PLACE PH II KANE 69 400-500 S 3RD ST @ SOUTH ST GENEVA, IL Office West 29,000 3.Planned 60134 ESTANCIA CORPORATE CENTER BLG II PH I DUPAGE 70 150 HARVESTER DR @ N FRONTAGE RD BURR Office West 110,000 3/2006 1.Complete RIDGE, IL 60527 CLEAR CHANNEL COMMUNICATIONS DUPAGE 71 4255 MERIDIAN PKWY @ STATE HWY 59 Office--Owner Occ. West 44,120 9/2005 1.Complete AURORA, IL 60504 ROLLINGRIDGE CENTER WILL 72 2940 ROLLINGRIDGE DR @ US HWY 59 Medical Office West 40,000 3/2005 1.Complete NAPERVILLE, IL 60564 BAY SCOTT CENTER DU PAGE 73 RICKERT DR @ PLAINFIELD RD/75TH ST Medical Office West 10,000 1/2005 1.Complete NAPERVILLE, IL 60540 MCCARTNEY CENTER DUPAGE 74 MEADOWRIDGE DR @ 75TH ST AURORA, IL Office Condominiums West 86,400 3.Planned 60540 ESTANCIA CORPORATE CENTER BLG I PH I DUPAGE 75 180 HARVESTER DR @ N FRONTAGE RD BURR Office West 50,000 10/2005 1.Complete RIDGE, IL 60521 BURR RIDGE TOWN CENTER DUPAGE 76 Office West 33,000 10/2007 3.Planned I-55 @ COUNTY LINE RD BURR RIDGE, IL 60527 BROOKDALE GATEWAY BLDGS 5,6 (LOT 7,4) DUPAGE 77 BOND ST @ BROOKDALE RD NAPERVILLE, IL Office West 75,000 5/2008 3.Planned 60503 ESTANCIA CORPORATE CENTER BLG III PH 3 DUPAGE 78 160 HARVESTER DR @ S MADISON BURR Office West 100,000 3.Planned RIDGE, IL 60527 WINFIELD TOWNE CENTER I DUPAGE 79 WINFIELD RD @ HIGH LAKES RD WINFIELD, IL Office West 25,574 3/2006 1.Complete 60190 MOSER PLAZA DUPAGE 80 Office West 17,000 5/2006 1.Complete S MAIN ST @ WATER ST NAPERVILLE, IL 60540 ORCHARD CORRIDOR OFFICE PARK I DUPAGE 81 SULLIVAN RD @ BOWMAN DR AURORA, IL Office Condominiums West 80,000 10/2006 2.Under Constr. 60506 WASHINGTON PLACE KENDALL 82 123 WASHINGTON ST (RTE 34) @ RTE 31 Office West 30,000 5/2006 1.Complete OSWEGO, IL 60543 REGENCY OFFICE PARK PH 1 DUPAGE 83 DIEHL RD @ NAPERVILLE RD NAPERVILLE, IL Office Condominiums West 55,000 3.Planned 60563 OGDEN PROFESSIONAL CENTER PH I DUPAGE 84 750 SHORELINE DR @ OGDEN AVE AURORA, Office West 8,000 4/2006 1.Complete IL 60504 Copyright 2006 Reis, Inc. Page 23
  • 25. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Size (Sq Est. No. Property Name and Address Secondary Type County Submarket Status Ft) Completion OGDEN PROFESSIONAL CENTER PH II BLDG 2 DUPAGE 85 SHORELINE DR @ OGDEN AVE AURORA, IL Office West 10,000 3/2007 2.Under Constr. 60504 IVANHOE WOODS DUPAGE 86 505-515 WARRENVILLE RD @ I-88 LISLE, IL Office West 19,550 2/2006 1.Complete 60532 REGENCY OFFICE PARK PH II DUPAGE 87 DIEHL RD @ NAPERVILLE RD NAPERVILLE, IL Office Condominiums West 55,000 11/2007 4.Proposed 60563 1551 E FABYAN PKWY KANE 88 1551 E FABYAN PKWY @ KIRK RD GENEVA, IL Office West 10,200 6/2006 1.Complete 60134 METRO COMMONS OFFICE PROJECT COOK 89 Office West 216,000 12/2007 3.Planned I-290 @ MANNHEIM RD HILLSIDE, IL 60162 ONE WALKER DUPAGE 90 1 WALKER AVE @ S PROSPECT AVE Office West 11,000 6/2006 1.Complete CLARENDON HILLS, IL 60514 THE SHOPPES OF WEBER RD (OFFICE) WILL 91 115TH ST @ S WEBER RD BOLINGBROOK, IL Office West 23,821 8/2007 3.Planned 60490 LEGACY BUSINESS CENTER PH I KANE 92 SWENSON AVE @ TYLER RD ST CHARLES, IL Office West 250,000 7/2007 2.Under Constr. 60174 LEGACY BUSINESS CENTER PH II KANE 93 SWENSON AVE @ E TYLER RD ST CHARLES, Office West 250,000 12/2007 3.Planned IL 60174 CITYGATE CENTER PH I DUPAGE 94 Office West 213,000 6/2007 2.Under Constr. I-88 @ RTE 59 NAPERVILLE, IL 60540 OGDEN PROFESSIONAL CENTER PH III BLDG 3 DUPAGE 95 Office West 10,000 11/2008 3.Planned SHORELINE DR @ OGDEN AVE AURORA, IL 60504 OGDEN PROFESSIONAL CENTER PH IV BLDG 4 DUPAGE 96 Office West 10,000 3/2009 3.Planned SHORELINE DR @ OGDEN AVE AURORA, IL 60504 OGDEN PROFESSIONAL CENTER PH V BLDG 5 DUPAGE 97 SHORELINE DR @ OGDEN AVE AURORA, IL Office West 10,000 1/2008 3.Planned 60504 OGDEN PROFESSIONAL CENTER PH VI BLDG 6 DUPAGE 98 Office West 10,000 5/2008 3.Planned SHORELINE DR @ OGDEN AVE AURORA, IL 60504 301 S WACKER DR COOK 99 Office West Loop 1,250,000 3.Planned 301 S WACKER DR CHICAGO, IL 60606 200 N RIVERSIDE COOK 100 Office West Loop 1,200,000 8/2010 3.Planned LAKE @ CANAL STREET CHICAGO, IL 60606 CENTURY PLACE II COOK 101 Office West Loop 479,000 6/2006 1.Complete 550 W ADAMS ST CHICAGO, IL 60661 Copyright 2006 Reis, Inc. Page 24
  • 26. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Size (Sq Est. No. Property Name and Address Secondary Type County Submarket Status Ft) Completion 155 N WACKER DR COOK 102 155 N WACKER DR @ W RANDOLPH ST Office West Loop 1,000,000 6/2009 2.Under Constr. CHICAGO, IL 60606 COOK 103 111 S WACKER DR CHICAGO, IL 60606 Office West Loop 1,020,000 6/2005 1.Complete 120 N JEFFERSON ST @ W WASHINGTON COOK 104 Office West Loop 400,000 10/2008 4.Proposed BLVD CHICAGO, IL 60661 601 W MONROE ST @ S JEFFERSON ST COOK 105 Office West Loop 600,000 4.Proposed CHICAGO, IL 60660 ABN AMRO PLAZA TOWER II COOK 106 Office--Owner Occ. West Loop 1,200,000 4.Proposed 560 W MADISON ST CHICAGO, IL 60661 Copyright 2006 Reis, Inc. Page 25
  • 27. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Section 10 - Market Data by Building Class - Class A Properties Inventory Occupied Asking Rent Constr/ Abs/Occ Gr Rev. Year Quarter Completions Vac % Vacant Stock Net Abs (Sq Ft) Stock Rent($) Change Abs Stock % Unit ($) 1990 Y 84,434,000 6,931,000 16.6% 14,004,000 70,430,000 3,313,000 $32.77 2.1% 2.1 4.7 $27.33 1991 Y 86,304,000 1,870,000 17.1% 14,780,000 71,524,000 1,094,000 $32.11 - 2.0% 1.7 1.5 $26.61 1992 Y 90,828,000 4,524,000 20.5% 18,643,000 72,185,000 661,000 $29.84 - 7.1% 6.8 0.9 $23.72 1993 Y 91,031,000 203,000 18.4% 16,717,000 74,314,000 2,129,000 $28.48 - 4.6% 0.1 2.9 $23.25 1994 Y 91,031,000 0 15.5% 14,135,000 76,896,000 2,582,000 $27.03 - 5.1% 0.0 3.4 $22.83 1995 Y 91,091,000 60,000 12.7% 11,540,000 79,551,000 2,655,000 $25.90 - 4.2% 0.0 3.3 $22.62 1996 Y 91,313,000 222,000 10.7% 9,744,000 81,569,000 2,018,000 $26.56 2.5% 0.1 2.5 $23.73 1997 Y 91,713,000 400,000 8.4% 7,741,000 83,972,000 2,403,000 $28.03 5.5% 0.2 2.9 $25.66 1998 Y 92,761,000 1,048,000 7.2% 6,701,000 86,060,000 2,088,000 $30.09 7.3% 0.5 2.4 $27.92 1999 Y 93,698,000 937,000 7.0% 6,572,000 87,126,000 1,066,000 $31.58 5.0% 0.9 1.2 $29.36 2000 Y 96,060,000 2,362,000 5.7% 5,471,000 90,589,000 3,463,000 $33.50 6.1% 0.7 3.8 $31.59 2001 Y 99,019,000 2,959,000 13.0% 12,888,000 86,131,000 -4,458,000 $32.75 - 2.2% -0.7 -5.2 $28.49 2002 1 99,452,000 433,000 13.9% 13,864,000 85,588,000 -543,000 $32.76 0.0% -0.8 -0.6 $28.19 2002 2 99,616,000 164,000 14.6% 14,518,000 85,098,000 -490,000 $32.35 - 1.3% -0.3 -0.6 $27.64 2002 3 100,332,000 716,000 15.5% 15,598,000 84,734,000 -364,000 $32.10 - 0.8% -2.0 -0.4 $27.11 2002 4 101,838,000 2,032,000 16.1% 16,377,000 85,461,000 727,000 $31.79 - 1.0% 2.8 0.9 $26.68 2002 Y 101,838,000 3,345,000 16.1% 16,377,000 85,461,000 -670,000 $31.79 - 2.9% -5.0 -0.8 $26.68 2003 1 101,838,000 0 15.6% 15,918,000 85,920,000 459,000 $31.77 - 0.1% 0.0 0.5 $26.80 2003 2 101,914,000 76,000 16.1% 16,403,000 85,511,000 -409,000 $31.53 - 0.8% -0.2 -0.5 $26.46 2003 3 101,914,000 0 16.2% 16,555,000 85,359,000 -152,000 $31.03 - 1.6% 0.0 -0.2 $25.99 2003 4 101,914,000 0 16.4% 16,714,000 85,200,000 -159,000 $30.74 - 0.9% 0.0 -0.2 $25.70 2003 Y 101,914,000 76,000 16.4% 16,714,000 85,200,000 -261,000 $30.74 - 3.3% -0.3 -0.3 $25.70 2004 1 101,697,000 0 16.5% 16,797,000 84,900,000 -300,000 $30.48 - 0.8% 0.0 -0.4 $25.45 2004 2 101,697,000 0 16.4% 16,721,000 84,976,000 76,000 $30.33 - 0.5% 0.0 0.1 $25.34 2004 3 101,697,000 0 16.8% 17,106,000 84,591,000 -385,000 $30.42 0.3% 0.0 -0.5 $25.30 2004 4 103,197,000 1,500,000 17.7% 18,237,000 84,960,000 369,000 $30.37 - 0.2% 4.1 0.4 $25.00 2004 Y 103,197,000 1,500,000 17.7% 18,237,000 84,960,000 -240,000 $30.37 - 1.2% -6.3 -0.3 $25.00 2005 1 103,197,000 0 17.8% 18,325,000 84,872,000 -88,000 $30.05 - 1.1% 0.0 -0.1 $24.71 2005 2 104,217,000 1,020,000 17.9% 18,609,000 85,608,000 736,000 $30.21 0.5% 1.4 0.9 $24.82 2005 3 104,217,000 0 18.0% 18,734,000 85,483,000 -125,000 $30.29 0.3% 0.0 -0.1 $24.85 2005 4 105,302,000 1,085,000 18.1% 19,035,000 86,267,000 784,000 $30.16 - 0.4% 1.4 0.9 $24.71 2005 Y 105,302,000 2,105,000 18.1% 19,035,000 86,267,000 1,307,000 $30.16 - 0.7% 1.6 1.5 $24.71 2006 1 105,319,000 17,000 17.2% 18,090,000 87,229,000 962,000 $30.46 1.0% 0.0 1.1 $25.23 2006 2 106,274,000 955,000 16.7% 17,764,000 88,510,000 1,281,000 $30.42 - 0.1% 0.7 1.4 $25.34 Copyright 2006 Reis, Inc. Page 26
  • 28. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Inventory Occupied Asking Rent Constr/ Abs/Occ Gr Rev. Year Quarter Completions Vac % Vacant Stock Net Abs (Sq Ft) Stock Rent($) Change Abs Stock % Unit ($) 2006 3 106,274,000 0 16.7% 17,742,000 88,532,000 22,000 $30.71 1.0% 0.0 0.0 $25.58 Copyright 2006 Reis, Inc. Page 27
  • 29. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Section 11 - Market Data by Building Class - Class B/C Properties Inventory Occupied Asking Rent Constr/ Abs/Occ Gr Rev. Year Quarter Completions Vac % Vacant Stock Net Abs (Sq Ft) Stock Rent($) Change Abs Stock % Unit ($) 1990 Y 113,694,000 1,616,000 19.7% 22,410,000 91,284,000 -419,000 $20.02 - 0.2% -3.9 -0.5 $16.07 1991 Y 114,683,000 989,000 20.7% 23,787,000 90,896,000 -388,000 $19.41 - 3.0% -2.5 -0.4 $15.38 1992 Y 115,020,000 337,000 21.7% 24,924,000 90,096,000 -800,000 $18.05 - 7.0% -0.4 -0.9 $14.14 1993 Y 115,316,000 296,000 21.9% 25,261,000 90,055,000 -41,000 $17.85 - 1.1% -7.2 0.0 $13.94 1994 Y 115,656,000 340,000 19.2% 22,233,000 93,423,000 3,368,000 $16.83 - 5.7% 0.1 3.6 $13.59 1995 Y 115,519,000 228,000 17.0% 19,642,000 95,877,000 2,454,000 $16.58 - 1.5% 0.1 2.6 $13.76 1996 Y 115,402,000 310,000 15.0% 17,341,000 98,061,000 2,184,000 $17.08 3.0% 0.1 2.2 $14.51 1997 Y 114,989,000 791,000 12.8% 14,680,000 100,309,000 2,248,000 $17.77 4.0% 0.4 2.2 $15.50 1998 Y 116,882,000 1,893,000 11.5% 13,436,000 103,446,000 3,137,000 $19.12 7.6% 0.6 3.0 $16.92 1999 Y 119,865,000 3,401,000 10.9% 13,052,000 106,813,000 3,367,000 $20.33 6.3% 1.0 3.2 $18.12 2000 Y 122,157,000 2,414,000 11.4% 13,935,000 108,222,000 1,409,000 $20.95 3.0% 1.7 1.3 $18.56 2001 Y 125,045,000 3,336,000 17.4% 21,735,000 103,310,000 -4,912,000 $21.06 0.5% -0.7 -4.8 $17.40 2002 1 125,211,000 385,000 18.8% 23,600,000 101,611,000 -1,699,000 $20.99 - 0.3% -0.2 -1.7 $17.03 2002 2 125,203,000 201,000 19.4% 24,304,000 100,899,000 -712,000 $21.10 0.5% -0.3 -0.7 $17.00 2002 3 125,158,000 160,000 19.7% 24,621,000 100,537,000 -362,000 $21.13 0.1% -0.4 -0.4 $16.97 2002 4 125,247,000 313,000 20.0% 25,064,000 100,183,000 -354,000 $21.05 - 0.4% -0.9 -0.4 $16.84 2002 Y 125,247,000 1,059,000 20.0% 25,064,000 100,183,000 -3,127,000 $21.05 0.0% -0.3 -3.1 $16.84 2003 1 124,592,000 177,000 20.2% 25,191,000 99,401,000 -782,000 $21.00 - 0.2% -0.2 -0.8 $16.75 2003 2 124,601,000 62,000 20.5% 25,492,000 99,109,000 -292,000 $20.80 - 1.0% -0.2 -0.3 $16.54 2003 3 124,329,000 138,000 20.7% 25,709,000 98,620,000 -489,000 $20.55 - 1.2% -0.3 -0.5 $16.30 2003 4 124,568,000 239,000 21.0% 26,122,000 98,446,000 -174,000 $20.47 - 0.4% -1.4 -0.2 $16.18 2003 Y 124,568,000 616,000 21.0% 26,122,000 98,446,000 -1,737,000 $20.47 - 2.8% -0.4 -1.8 $16.18 2004 1 124,673,000 150,000 21.0% 26,189,000 98,484,000 38,000 $20.39 - 0.4% 3.9 0.0 $16.11 2004 2 124,612,000 148,000 21.2% 26,368,000 98,244,000 -240,000 $20.22 - 0.8% -0.6 -0.2 $15.94 2004 3 124,185,000 122,000 21.0% 26,130,000 98,055,000 -189,000 $20.19 - 0.1% -0.6 -0.2 $15.94 2004 4 124,378,000 257,000 20.3% 25,307,000 99,071,000 1,016,000 $20.24 0.2% 0.3 1.0 $16.12 2004 Y 124,378,000 677,000 20.3% 25,307,000 99,071,000 625,000 $20.24 - 1.1% 1.1 0.6 $16.12 2005 1 123,659,000 58,000 19.9% 24,580,000 99,079,000 8,000 $20.15 - 0.4% 7.3 0.0 $16.14 2005 2 122,934,000 12,000 19.3% 23,702,000 99,232,000 153,000 $20.15 0.0% 0.1 0.2 $16.27 2005 3 122,796,000 22,000 19.2% 23,607,000 99,189,000 -43,000 $20.14 0.0% -0.5 0.0 $16.27 2005 4 122,500,000 94,000 19.3% 23,610,000 98,890,000 -299,000 $20.20 0.3% -0.3 -0.3 $16.31 2005 Y 122,500,000 186,000 19.3% 23,610,000 98,890,000 -181,000 $20.20 - 0.2% -1.0 -0.2 $16.31 2006 1 122,190,000 306,000 19.4% 23,678,000 98,512,000 -378,000 $20.28 0.4% -0.8 -0.4 $16.35 2006 2 121,895,000 76,000 19.1% 23,226,000 98,669,000 157,000 $20.30 0.1% 0.5 0.2 $16.43 Copyright 2006 Reis, Inc. Page 28
  • 30. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Inventory Occupied Asking Rent Constr/ Abs/Occ Gr Rev. Year Quarter Completions Vac % Vacant Stock Net Abs (Sq Ft) Stock Rent($) Change Abs Stock % Unit ($) 2006 3 121,627,000 0 18.4% 22,370,000 99,257,000 588,000 $20.46 0.8% 0.0 0.6 $16.70 Copyright 2006 Reis, Inc. Page 29
  • 31. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Section 12 - Submarket Snapshot Lease Leasing Tenant Inventory Inventory Asking Free Rent Expenses $ Submarket CRD % Vac % Term Commission Improvements (Buildings) (Sq Ft) Rent $ (mos) (Commercial) (yrs) % $ 66 32,004,000 $28.07 - 4.8% 18.2% 2.7 $13.53 7.0 3.6% $27.16 Central Loop 49 19,030,000 $27.18 - 6.2% 16.7% 2.9 $13.25 7.2 4.5% $27.89 East Loop 84 41,053,000 $31.00 - 6.3% 15.4% 2.7 $14.26 7.4 3.8% $28.39 West Loop 25 3,766,000 $25.46 - 7.3% 18.5% 1.9 $11.78 6.6 4.3% $18.03 South Loop 50 11,812,000 $30.45 - 6.5% 16.2% 3.1 $14.46 6.6 4.7% $26.37 N Michigan Ave 79 8,321,000 $23.34 - 4.6% 8.6% 2.1 $ 9.81 5.7 3.2% $14.64 River North 244 17,345,000 $22.59 - 6.5% 16.1% 2.1 $ 8.67 4.8 4.0% $18.24 North 38 2,392,000 $19.47 - 3.8% 7.5% 1.5 $ 7.57 5.0 2.9% $11.90 City North 403 33,065,000 $21.34 - 8.1% 19.9% 2.1 $ 8.50 5.3 4.3% $13.57 NW Suburbs 91 13,672,000 $23.54 - 8.6% 20.4% 2.9 $10.67 5.3 4.9% $17.32 O'Hare Area 501 36,097,000 $21.53 - 7.3% 20.8% 1.9 $ 7.30 5.3 4.1% $17.36 West 49 3,669,000 $18.38 - 6.9% 12.3% 2.2 $ 6.79 5.3 3.2% $14.51 City West 149 5,675,000 $18.16 - 7.0% 20.4% 1.9 $ 6.59 4.4 4.9% $14.25 Southwest Copyright 2006 Reis, Inc. Page 30
  • 32. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Section 13 - Economic and Demographic Trends Chicago Employment Trends 2.0% Percentage Change 1.0% 0.0% -1.0% -2.0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Total Employment Office Employment Provided by Economy.com, Period ending 12/31/10 Total Employment Growth Trends Metro vs. Region & U.S. Percentage Change 1.0% 0.0% -1.0% -2.0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Chicago Midwest US Provided by Economy.com, Period ending 12/31/10 Chicago Population/Household Growth Trends 5.0% Percentage Change 4.0% 3.0% 2.0% 1.0% 0.0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Population Avg. HH Income Provided by Economy.com, Period ending 12/31/10 Copyright 2006 Reis, Inc. Page 31
  • 33. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Section 14 - Submarket Boundaries Submarkets 1 Central Loop 8 City North 2 East Loop 9 Northwest Suburbs 3 West Loop 10 O'Hare Area 4 South Loop 11 West 5 North Michigan Avenue 12 City West 6 River North 13 Southwest 7 North Copyright 2006 Reis, Inc. Page 32
  • 34. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Section 15 - Metro Data Inventory Inventory Vacancy Vacancy Occupied Net Ask Rent % Year Qtr Completions Vacant Stock Asking Rent SF/Units Growth% Rate Change(%) Stock Absorption Chg 2001 Y 224,064,000 6,295,000 2.7% 34,623,000 15.5% 6.6% 189,441,000 -9,368,000 $26.23 - 0.9% 2002 Y 227,085,000 4,404,000 1.3% 41,442,000 18.2% 2.7% 185,643,000 -3,798,000 $25.86 - 1.4% 2003 Y 226,482,000 692,000 - 0.3% 42,837,000 18.9% 0.7% 183,645,000 -1,998,000 $25.09 - 3.0% 2004 4 227,575,000 1,757,000 0.7% 43,545,000 19.1% 0.0% 184,030,000 1,386,000 $24.83 0.2% 2004 Y 227,575,000 2,177,000 0.5% 43,545,000 19.1% 0.2% 184,030,000 385,000 $24.83 - 1.0% 2005 1 226,856,000 58,000 - 0.3% 42,907,000 18.9% - 0.2% 183,949,000 -81,000 $24.65 - 0.7% 2005 2 227,151,000 1,032,000 0.1% 42,313,000 18.6% - 0.3% 184,838,000 889,000 $24.76 0.4% 2005 3 227,013,000 22,000 - 0.1% 42,341,000 18.7% 0.1% 184,672,000 -166,000 $24.80 0.2% 2005 4 227,802,000 1,179,000 0.3% 42,642,000 18.7% 0.0% 185,160,000 488,000 $24.81 0.0% 2005 Y 227,802,000 2,291,000 0.1% 42,642,000 18.7% - 0.4% 185,160,000 1,130,000 $24.81 - 0.1% 2006 1 227,509,000 323,000 - 0.1% 41,767,000 18.4% - 0.3% 185,742,000 582,000 $24.99 0.7% 2006 2 228,169,000 1,031,000 0.3% 40,991,000 18.0% - 0.4% 187,178,000 1,436,000 $25.01 0.1% 2006 3 227,901,000 0 - 0.1% 40,110,000 17.6% - 0.4% 187,791,000 613,000 $25.24 0.9% 2006 Y 227,998,000 1,451,000 0.1% 39,555,000 17.3% - 1.4% 188,443,000 3,283,000 $25.41 2.4% 2007 Y 229,822,000 1,824,000 0.8% 37,734,000 16.4% - 0.9% 192,088,000 3,645,000 $25.94 2.1% 2008 Y 232,557,000 2,735,000 1.2% 36,357,000 15.6% - 0.8% 196,200,000 4,112,000 $26.62 2.6% 2009 Y 235,726,000 3,169,000 1.4% 34,636,000 14.7% - 0.9% 201,090,000 4,890,000 $27.47 3.2% 2010 Y 237,901,000 2,175,000 0.9% 31,605,000 13.3% - 1.4% 206,296,000 5,206,000 $28.41 3.4% Effective Eff Rent % Abs/Occ Pop% Emp% Off Emp Avg HH AHHI% Year Qtr Cons/ Abs Population Employment Off Emp Rent Chg Stock% Chg Chg Pct Chg Income Chg 2001 Y $21.71 - 4.0% -0.7 - 4.9% 7,736,140 0.8% 3,831,760 - 2.3% 1,234,770 - 2.1% $97,037 - 0.3% 2002 Y $21.38 - 1.5% -1.2 - 2.0% 7,783,260 0.6% 3,786,260 - 1.2% 1,224,724 - 0.8% $97,874 0.9% 2003 Y $20.31 - 5.0% -0.3 - 1.1% 7,829,560 0.6% 3,739,610 - 1.2% 1,217,728 - 0.6% $100,289 2.5% 2004 4 $19.93 0.2% 1.3 0.8% 7,869,250 0.1% 3,768,040 0.4% 1,234,485 0.7% $105,234 2.8% 2004 Y $19.93 - 1.9% 5.7 0.2% 7,869,250 0.5% 3,768,040 0.8% 1,234,485 1.4% $105,234 4.9% 2005 1 $19.76 - 0.9% -0.7 0.0% 7,876,680 0.1% 3,770,530 0.1% 1,236,842 0.2% $105,618 0.4% 2005 2 $19.90 0.7% 1.2 0.5% 7,882,730 0.1% 3,785,760 0.4% 1,242,912 0.5% $106,566 0.9% 2005 3 $19.93 0.2% -0.1 - 0.1% 7,894,970 0.2% 3,795,780 0.3% 1,248,215 0.4% $107,531 0.9% 2005 4 $20.00 0.4% 2.4 0.3% 7,908,170 0.2% 3,810,720 0.4% 1,256,471 0.7% $108,417 0.8% 2005 Y $20.00 0.4% 2.0 0.6% 7,908,170 0.5% 3,810,720 1.1% 1,256,471 1.8% $108,417 3.0% 2006 1 $20.18 0.9% 0.6 0.3% 7,918,790 0.1% 3,815,140 0.1% 1,260,543 0.3% $109,843 1.3% 2006 2 $20.35 0.8% 0.7 0.8% 7,931,250 0.2% 3,829,200 0.4% 1,270,643 0.8% $111,292 1.3% 2006 3 $20.65 1.5% 0.0 0.3% 7,943,660 0.2% 3,848,650 0.5% 1,277,164 0.5% $112,791 1.3% 2006 Y $20.80 4.0% 0.4 1.7% 7,953,380 0.6% 3,860,640 1.3% 1,281,733 2.0% $114,103 5.2% 2007 Y $21.54 3.6% 0.5 1.9% 7,999,350 0.6% 3,904,790 1.1% 1,297,831 1.3% $119,391 4.6% 2008 Y $22.35 3.8% 0.7 2.1% 8,048,150 0.6% 3,956,750 1.3% 1,317,894 1.5% $124,364 4.2% 2009 Y $23.31 4.3% 0.6 2.4% 8,103,430 0.7% 4,017,700 1.5% 1,339,572 1.6% $129,353 4.0% 2010 Y $24.38 4.6% 0.4 2.5% 8,157,230 0.7% 4,074,580 1.4% 1,360,256 1.5% $134,177 3.7% Copyright 2006 Reis, Inc. Page 33
  • 35. Submarket Analysis
  • 36. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Submarket: North Section 16 - Current Submarket Rent Details Asking Rent by Age Asking Rent Distribution Asking Rent Growth Rate Distribution Low 25% Mean Median 75% High Low 25% Mean Median 75% High Year Built Rent Before 1970 $20.81 $13.50 $20.06 $22.59 $22.86 $25.26 $31.00 - 2.6% 0.0% 1.4% 1.0% 2.3% 7.2% 1970-1979 $21.44 51 81 1980-1989 $23.01 Number of Properties Number of Properties 45 1990-1999 $24.14 After 1999 $24.50 33 48 28 All $22.59 26 22 33 As of 09/30/06 15 20 16 10 13 11 8 Under $15.70 $17.89 $20.08 $22.27 $24.46 $26.65 $28.84 Under - 2.4% - 1.2% 0.0% 1.2% 2.4% 3.6% 4.8% $15.69 $17.88 $20.07 $22.26 $24.45 $26.64 $28.83 Over - 2.5% - 1.3% - 0.1% 1.1% 2.3% 3.5% 4.7% Over Negative Growth 60 170 Positive Growth As of 09/30/06 Qtr Ending 09/30/06 Section 17 - Rent Growth Comparisons Asking Rent Growth Quarterly Annualized 3Q06 2Q06 YTD Avg 1 Year 3 Year 5 Year 5 Yr Forecast North 1.4% - 0.0% 0.6% 1.8% - 0.6% - 0.4% 2.9% Chicago 0.9% 0.1% 0.6% - 0.1% - 1.4% - 1.3% 2.7% Midwest 0.4% 0.1% 0.4% - 0.0% - 1.0% - 1.0% 2.2% United States 1.8% 1.6% 1.6% 2.6% - 0.6% - 2.1% 3.9% Average over period ending: 09/30/06 06/30/06 09/30/06 12/31/05 12/31/05 12/31/05 12/31/10 Submarket Ranks Submarket Rank Total Compared to: Subs 3Q06 2Q06 YTD 1 Year 3 Year 5 Year 5 Yr Forecast Chicago 13 4 10 8 3 2 3 8 Midwest 103 20 66 37 30 53 50 21 United States 600 247 475 401 308 392 369 379 Asking Rent Growth Rate Trends and Forecast % 6.0 4.0 North 2.0 Chicago 0.0 Midwest -2.0 US -4.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Period ending 12/31/10 Copyright 2006 Reis, Inc. Page 35
  • 37. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Submarket: North Section 18 - Current Submarket Vacancy Details Vacancy Rate By Age Vacancy Rate Distribution Low 25% Mean Median 75% High Year Built Vac. Rate Before 1970 15.4% 0.0% 2.5% 16.1% 9.8% 23.0% 63.2% 1970-1979 15.9% 88 1980-1989 15.2% Number of Properties 1990-1999 11.5% After 1999 22.0% All 16.1% 36 As of 09/30/06 32 26 16 12 11 9 Under 5.1% 10.1% 15.1% 20.1% 25.1% 30.1% 35.1% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Over As of 09/30/06 Section 19 - Vacancy Rate Comparisons Vacancy Rates Quarterly Annualized 3Q06 2Q06 YTD Avg 1 Year 3 Year 5 Year 5 Yr Forecast North 16.1% 17.0% 16.6% 17.5% 18.8% 17.2% 13.8% Chicago 17.6% 18.0% 18.0% 18.9% 18.8% 16.6% 15.5% Midwest 17.7% 17.9% 17.9% 18.5% 18.3% 16.4% 15.4% United States 13.5% 13.8% 13.8% 15.5% 16.0% 14.3% 12.1% Average over period ending: 09/30/06 06/30/06 09/30/06 12/31/05 12/31/05 12/31/05 12/31/10 Submarket Ranks Submarket Rank Total Compared to: Subs 3Q06 2Q06 YTD 1 Year 3 Year 5 Year 5 Yr Forecast Chicago 13 5 6 6 6 6 8 4 Midwest 103 42 52 45 52 68 66 35 United States 600 413 435 415 406 445 442 398 Vacancy Rate Trends and Forecast % 20.0 North 18.0 Chicago 16.0 Midwest 14.0 US 12.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Period ending 12/31/10 Copyright 2006 Reis, Inc. Page 36
  • 38. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Submarket: North Section 20 - Submarket Inventory Detail Inventory By Building Age Office Stock Traits Submarket Year Built Percent Low Mean Median High Before 1970 11.0% Year Built 1922 1980 1983 2001 1970-1979 19.0% Size (Sq. ft.) 15,500 76,204 52,414 258,000 1980-1989 43.0% Distance to Highway (miles) 0 0.2 0.2 0.6 1990-1999 18.0% Distance to CBD (miles) 10.7 21.1 21.4 36.7 After 1999 8.0% Distance to Landmark (miles) 0.5 3.7 3.9 7 All 100.0% As of 09/30/06 Landmark =Lake Michigan As of 09/30/06 Current Inventory Level Properties Square Feet North 244 17,345,000 Share of Metro 13.0% 8.0% Average Submarket Lease Terms As of 09/30/06 Free Rent Expenses $ Lease Term Leasing Tenant CRD % (mos) (Commercial) (yrs) Commission % Improvements $ - 6.5% 2.1 $ 8.67 4.8 4.0% $18.24 Section 21 - Inventory Growth Comparison Inventory Growth Rates Quarterly Annualized 3Q06 2Q06 YTD Avg 1 Year 3 Year 5 Year 5 Yr Forecast North - 0.2% 0.0% - 0.2% - 0.3% - 0.0% 0.9% 0.4% Chicago - 0.1% 0.3% 0.0% 0.1% 0.1% 0.9% 0.9% Midwest - 0.2% 0.1% - 0.1% - 0.2% 0.1% 0.8% 1.0% United States - 0.1% 0.0% - 0.1% - 0.0% 0.4% 1.1% 1.4% Average over period ending: 09/30/06 06/30/06 09/30/06 12/31/05 12/31/05 12/31/05 12/31/10 Submarket Ranks Submarket Rank Total Compared to: Subs 3Q06 2Q06 YTD 1 Year 3 Year 5 Year 5 Yr Forecast Chicago 13 11 4 10 8 6 5 8 Midwest 103 88 19 76 70 66 55 67 United States 600 512 90 445 400 392 299 412 Inventory Growth Comparisons and Forecast % 3.0 North 2.0 Chicago Midwest 1.0 US 0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Period ending 12/31/10 Copyright 2006 Reis, Inc. Page 37
  • 39. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Submarket: North Section 22 - Construction/Absorption Change Construction and Absorption Quarterly 3Q06 2Q06 YTD Avg Sq Ft Con/Abs Sq Ft Con/Abs Sq Ft Con/Abs Sq Ft Built Sq Ft Built Sq Ft Built Absorbed Ratio Absorbed Ratio Absorbed Ratio North 0 123,000 0.0 46,000 -47,000 -1.0 15,333 -35,000 -0.4 Chicago 0 613,000 0.0 1,031,000 1,436,000 0.7 451,333 877,000 0.5 Average over period ending: 09/30/06 09/30/06 09/30/06 06/30/06 06/30/06 06/30/06 09/30/06 09/30/06 09/30/06 Annualized 1 Year History 3 Year History 5 Year History Sq Ft Con/Abs Sq Ft Con/Abs Sq Ft Con/Abs Sq Ft Built Sq Ft Built Sq Ft Built Absorbed Ratio Absorbed Ratio Absorbed Ratio North 16,000 478,000 0.0 18,333 216,333 0.1 183,000 -115,200 -1.6 Chicago 2,291,000 1,130,000 2.0 1,720,000 -161,000 -10.7 3,171,800 -2,729,800 -1.2 Average over period ending: 12/31/05 12/31/05 12/31/05 12/31/05 12/31/05 12/31/05 12/31/05 12/31/05 12/31/05 Annualized 5 Year Forecast Sq Ft Con/Abs Sq Ft Built Absorbed Ratio North 102,800 239,400 0.4 Chicago 2,270,800 4,227,200 0.5 Average over period ending: 12/31/10 12/31/10 12/31/10 Construction/Absorption and Vacancy 20 500,000 15 0 Vacancy Rate (%) Square Feet 10 -500,000 5 -1,000,000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Vacancy Rate Construction Absorption Period ending 12/31/10 Copyright 2006 Reis, Inc. Page 38
  • 40. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Submarket: North Section 23 - Market Data by Building Class - Class A Properties Inventory Occupied Asking Rent Constr/ Abs/Occ Gr Rev. Year Quarter Completions Vac % Vacant Stock Net Abs (Sq Ft) Stock Rent($) Change Abs Stock % Unit ($) 1995 Y 3,197,000 0 8.2% 262,000 2,935,000 -79,000 $24.05 - 1.2% 0.0 -2.7 $22.08 1996 Y 3,197,000 0 4.9% 156,000 3,041,000 106,000 $24.06 0.0% 0.0 3.5 $22.89 1997 Y 3,197,000 0 8.3% 264,000 2,933,000 -108,000 $25.56 6.2% 0.0 -3.7 $23.45 1998 Y 3,197,000 0 4.3% 137,000 3,060,000 127,000 $27.06 5.9% 0.0 4.2 $25.90 1999 Y 3,397,000 200,000 8.0% 271,000 3,126,000 66,000 $27.42 1.3% 3.0 2.1 $25.23 2000 Y 3,397,000 0 7.4% 251,000 3,146,000 20,000 $27.94 1.9% 0.0 0.6 $25.88 2001 Y 3,456,000 59,000 14.2% 490,000 2,966,000 -180,000 $26.60 - 4.8% -0.3 -6.1 $22.83 2002 1 3,456,000 0 16.8% 581,000 2,875,000 -91,000 $27.09 1.8% 0.0 -3.2 $22.54 2002 2 3,456,000 0 17.5% 605,000 2,851,000 -24,000 $27.28 0.7% 0.0 -0.8 $22.50 2002 3 3,456,000 0 22.4% 775,000 2,681,000 -170,000 $26.99 - 1.1% 0.0 -6.3 $20.94 2002 4 3,456,000 0 20.9% 723,000 2,733,000 52,000 $26.54 - 1.7% 0.0 1.9 $20.99 2002 Y 3,456,000 0 20.9% 723,000 2,733,000 -233,000 $26.54 - 0.2% 0.0 -8.5 $20.99 2003 1 3,456,000 0 19.7% 682,000 2,774,000 41,000 $26.66 0.5% 0.0 1.5 $21.40 2003 2 3,456,000 0 21.0% 726,000 2,730,000 -44,000 $25.59 - 4.0% 0.0 -1.6 $20.21 2003 3 3,456,000 0 23.6% 817,000 2,639,000 -91,000 $24.89 - 2.7% 0.0 -3.4 $19.01 2003 4 3,456,000 0 24.0% 830,000 2,626,000 -13,000 $24.94 0.2% 0.0 -0.5 $18.95 2003 Y 3,456,000 0 24.0% 830,000 2,626,000 -107,000 $24.94 - 6.0% 0.0 -4.1 $18.95 2004 1 3,456,000 0 23.8% 821,000 2,635,000 9,000 $25.35 1.6% 0.0 0.3 $19.33 2004 2 3,456,000 0 24.0% 830,000 2,626,000 -9,000 $25.32 - 0.1% 0.0 -0.3 $19.24 2004 3 3,456,000 0 21.1% 729,000 2,727,000 101,000 $25.06 - 1.0% 0.0 3.7 $19.77 2004 4 3,456,000 0 23.1% 798,000 2,658,000 -69,000 $25.18 0.5% 0.0 -2.6 $19.37 2004 Y 3,456,000 0 23.1% 798,000 2,658,000 32,000 $25.18 1.0% 0.0 1.2 $19.37 2005 1 3,456,000 0 22.3% 770,000 2,686,000 28,000 $25.24 0.2% 0.0 1.0 $19.62 2005 2 3,456,000 0 21.5% 744,000 2,712,000 26,000 $25.68 1.7% 0.0 1.0 $20.15 2005 3 3,456,000 0 21.3% 737,000 2,719,000 7,000 $25.89 0.8% 0.0 0.3 $20.37 2005 4 3,456,000 0 20.5% 708,000 2,748,000 29,000 $26.05 0.6% 0.0 1.1 $20.71 2005 Y 3,456,000 0 20.5% 708,000 2,748,000 90,000 $26.05 3.5% 0.0 3.3 $20.71 2006 1 3,456,000 0 19.4% 671,000 2,785,000 37,000 $26.07 0.1% 0.0 1.3 $21.01 2006 2 3,502,000 46,000 20.0% 701,000 2,801,000 16,000 $26.04 - 0.1% 2.9 0.6 $20.83 2006 3 3,502,000 0 18.9% 662,000 2,840,000 39,000 $26.60 2.2% 0.0 1.4 $21.57 Copyright 2006 Reis, Inc. Page 39
  • 41. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Submarket: North Section 24 - Market Data by Building Class - Class B/C Properties Inventory Occupied Asking Rent Constr/ Abs/Occ Gr Rev. Year Quarter Completions Vac % Vacant Stock Net Abs (Sq Ft) Stock Rent($) Change Abs Stock % Unit ($) 1995 Y 11,167,000 59,000 9.6% 1,074,000 10,093,000 490,000 $17.95 - 2.0% 0.1 4.9 $16.22 1996 Y 11,191,000 24,000 9.7% 1,081,000 10,110,000 17,000 $18.48 3.0% 1.4 0.2 $16.69 1997 Y 11,352,000 161,000 7.7% 870,000 10,482,000 372,000 $19.02 2.9% 0.4 3.5 $17.56 1998 Y 12,086,000 734,000 8.0% 963,000 11,123,000 641,000 $20.33 6.9% 1.1 5.8 $18.71 1999 Y 12,886,000 800,000 8.4% 1,080,000 11,806,000 683,000 $21.23 4.4% 1.2 5.8 $19.45 2000 Y 13,251,000 365,000 8.8% 1,164,000 12,087,000 281,000 $21.28 0.2% 1.3 2.3 $19.41 2001 Y 13,815,000 606,000 20.0% 2,757,000 11,058,000 -1,029,000 $21.67 1.8% -0.6 -9.3 $17.35 2002 1 14,010,000 195,000 19.3% 2,704,000 11,306,000 248,000 $21.60 - 0.3% 0.8 2.2 $17.43 2002 2 14,010,000 0 19.6% 2,748,000 11,262,000 -44,000 $21.67 0.3% 0.0 -0.4 $17.42 2002 3 14,010,000 0 19.0% 2,666,000 11,344,000 82,000 $21.76 0.4% 0.0 0.7 $17.62 2002 4 14,010,000 0 19.5% 2,735,000 11,275,000 -69,000 $21.64 - 0.6% 0.0 -0.6 $17.42 2002 Y 14,010,000 195,000 19.5% 2,735,000 11,275,000 217,000 $21.64 - 0.1% 0.9 1.9 $17.42 2003 1 14,010,000 0 18.9% 2,654,000 11,356,000 81,000 $21.59 - 0.2% 0.0 0.7 $17.50 2003 2 14,010,000 0 19.5% 2,732,000 11,278,000 -78,000 $21.40 - 0.9% 0.0 -0.7 $17.23 2003 3 14,010,000 0 20.2% 2,834,000 11,176,000 -102,000 $21.13 - 1.3% 0.0 -0.9 $16.86 2003 4 14,010,000 0 19.6% 2,750,000 11,260,000 84,000 $21.09 - 0.2% 0.0 0.7 $16.95 2003 Y 14,010,000 0 19.6% 2,750,000 11,260,000 -15,000 $21.09 - 2.5% 0.0 -0.1 $16.95 2004 1 14,010,000 0 19.6% 2,742,000 11,268,000 8,000 $21.23 0.7% 0.0 0.1 $17.07 2004 2 14,034,000 24,000 20.1% 2,824,000 11,210,000 -58,000 $21.26 0.1% -0.4 -0.5 $16.98 2004 3 14,049,000 15,000 19.6% 2,754,000 11,295,000 85,000 $20.95 - 1.5% 0.2 0.8 $16.84 2004 4 14,049,000 0 18.0% 2,528,000 11,521,000 226,000 $21.01 0.3% 0.0 2.0 $17.23 2004 Y 14,049,000 39,000 18.0% 2,528,000 11,521,000 261,000 $21.01 - 0.4% 0.1 2.3 $17.23 2005 1 14,049,000 0 16.6% 2,329,000 11,720,000 199,000 $21.06 0.2% 0.0 1.7 $17.57 2005 2 14,010,000 0 15.6% 2,190,000 11,820,000 100,000 $21.09 0.1% 0.0 0.8 $17.79 2005 3 13,994,000 0 15.4% 2,160,000 11,834,000 14,000 $21.07 - 0.1% 0.0 0.1 $17.82 2005 4 13,993,000 16,000 14.9% 2,084,000 11,909,000 75,000 $21.27 0.9% 0.2 0.6 $18.10 2005 Y 13,993,000 16,000 14.9% 2,084,000 11,909,000 388,000 $21.27 1.2% 0.0 3.3 $18.10 2006 1 13,922,000 0 16.0% 2,231,000 11,691,000 -218,000 $21.35 0.4% 0.0 -1.9 $17.93 2006 2 13,882,000 0 16.2% 2,254,000 11,628,000 -63,000 $21.33 - 0.1% 0.0 -0.5 $17.87 2006 3 13,843,000 0 15.4% 2,131,000 11,712,000 84,000 $21.57 1.1% 0.0 0.7 $18.25 Copyright 2006 Reis, Inc. Page 40
  • 42. Office - Asset Advisor 3rd Quarter 2006 Metro: Chicago Submarket: North Section 25 - Submarket Data Inventory Inventory Vacancy Vacancy Occupied Net Ask Rent % Year Qtr Completions Vacant Stock Asking Rent SF/Units Growth% Rate Change(%) Stock Absorption Chg 2001 Y 17,271,000 665,000 3.7% 3,247,000 18.8% 10.3% 14,024,000 -1,209,000 $22.66 0.1% 2002 Y 17,466,000 195,000 1.1% 3,458,000 19.8% 1.0% 14,008,000 -16,000 $22.61 - 0.2% 2003 Y 17,466,000 0 0.0% 3,581,000 20.5% 0.7% 13,885,000 -123,000 $21.85 - 3.4% 2004 4 17,505,000 0 0.0% 3,326,000 19.0% - 0.9% 14,179,000 157,000 $21.83 0.3% 2004 Y 17,505,000 39,000 0.2% 3,326,000 19.0% - 1.5% 14,179,000 294,000 $21.83 - 0.1% 2005 1 17,505,000 0 0.0% 3,098,000 17.7% - 1.3% 14,407,000 228,000 $21.89 0.3% 2005 2 17,466,000 0 - 0.2% 2,934,000 16.8% - 0.9% 14,532,000 125,000 $22.00 0.5% 2005 3 17,450,000 0 - 0.1% 2,897,000 16.6% - 0.2% 14,553,000 21,000 $22.02 0.1% 2005 4 17,449,000 16,000 0.0% 2,792,000 16.0% - 0.6% 14,657,000 104,000 $22.22 0.9% 2005 Y 17,449,000 16,000 - 0.3% 2,792,000 16.0% - 3.0% 14,657,000 478,000 $22.22 1.8% 2006 1 17,378,000 0 - 0.4% 2,902,000 16.7% 0.7% 14,476,000 -181,000 $22.29 0.3% 2006 2 17,384,000 46,000 0.0% 2,955,000 17.0% 0.3% 14,429,000 -47,000 $22.28 0.0% 2006 3 17,345,000 0 - 0.2% 2,793,000 16.1% - 0.9% 14,552,000 123,000 $22.59 1.4% 2006 Y 17,345,000 46,000 - 0.6% 2,770,000 16.0% 0.0% 14,575,000 -82,000 $22.75 2.4% 2007 Y 17,548,000 203,000 1.2% 2,773,000 15.8% - 0.2% 14,775,000 200,000 $23.24 2.2% 2008 Y 17,813,000 265,000 1.5% 2,496,000 14.0% - 1.8% 15,317,000 542,000 $23.92 2.9% 2009 Y 17,813,000 0 0.0% 2,191,000 12.3% - 1.7% 15,622,000 305,000 $24.79 3.6% 2010 Y 17,813,000 0 0.0% 1,959,000 11.0% - 1.3% 15,854,000 232,000 $25.59 3.2% Effective Eff Rent % Abs/Occ Year Qtr Cons/ Abs Rent Chg Stock% 2001 Y $18.49 - 4.4% -0.6 - 8.6% 2002 Y $18.19 - 1.6% -12.2 - 0.1% 2003 Y $17.45 - 4.1% 0.0 - 0.9% 2004 4 $17.41 0.6% 0.0 1.1% 2004 Y $17.41 - 0.2% 0.1 2.1% 2005 1 $17.34 - 0.4% 0.0 1.6% 2005 2 $17.45 0.6% 0.0 0.9% 2005 3 $17.42 - 0.2% 0.0 0.1% 2005 4 $17.63 1.2% 0.2 0.7% 2005 Y $17.63 1.3% 0.0 3.3% 2006 1 $17.59 - 0.2% 0.0 - 1.3% 2006 2 $17.47 - 0.7% -1.0 - 0.3% 2006 3 $18.05 3.3% 0.0 0.8% 2006 Y $18.19 3.2% -0.6 - 0.6% 2007 Y $18.85 3.6% 1.0 1.4% 2008 Y $19.68 4.4% 0.5 3.5% 2009 Y $20.62 4.8% 0.0 2.0% 2010 Y $21.54 4.5% 0.0 1.5% Copyright 2006 Reis, Inc. Page 41
  • 43. Rent Comps
  • 44. Rent Comparables Office - Asset Advisor Rent Comparables 3000 Dundee Rd, Rd Northbrook, IL 60062 3000 Dundee Northbrook, IL -- 12/05/2006 Metro: Chicago SUBJECT PROPERTY Subject Property Location Subject Property Statistics Address 3000 Dundee Rd Property Type Office City Northbrook Year Built 1979 State IL Size (SF) 80,516 ZIP 60062 Asking Rent $18.75 Metro Chicago Vacancy 18.0% Submarket North Latitude 42.13850 Longitude -87.85336 COMPARABLE GROUP MARKET SUMMARY Comparable Group Summary Statistics Low Mean Median High Current Asking Rent/SF $18.87 $22.02 $21.14 $25.77 Current Vacancy Rate 0.7% 18.1% 13.2% 51.2% Operating Expenses/SF $1.95 $8.23 $8.45 $11.24 Real Estate Taxes/SF $0.82 $3.84 $3.61 $5.21 Property Size (SF) 66,000 84,833 85,000 115,866 Year Built 1976 1981 1981 1986 As of 9/30/06 LEASE TERMS Average Submarket Lease Terms Contract Rent Discount -6.5% Free Rent (months/lease) 2.1 Lease Length (years) 4.8 Tenant Improvements/SF $18.24 Commissions 4.0% As of 9/30/06 Copyright 2006 Reis, Inc. Page 43
  • 45. Rent Comparables Office - Asset Advisor Rent Comparables 3000 Dundee Rd, Rd Northbrook, IL 60062 3000 Dundee Northbrook, IL -- 12/05/2006 Metro: Chicago RENT GROWTH COMPARISONS Asking Rent Growth Rates Quarterly Annualized 3Q2006 2Q2006 YTD 1 Year 3 Year 5 Year Comparable Group 0.6% 0.4% 0.4% 1.1% -0.5% -0.1% North 1.4% -0.0% 0.6% 1.8% -0.6% -0.4% Chicago 0.9% 0.1% 0.6% -0.1% -1.4% -1.3% 1. Quarter ending 9/30/06 2. Quarter ending 6/30/06 3. Avg over period ending 9/30/06 4. Avg over period ending 12/31/05 VACANCY RATE COMPARISONS Quarterly Annualized 3Q2006 2Q2006 YTD 1 Year 3 Year 5 Year Comparable Group 18.1% 18.7% 18.0% 17.8% 16.2% 14.4% North 16.1% 17.0% 16.6% 17.5% 18.8% 17.2% Chicago 17.6% 18.0% 18.0% 18.9% 18.8% 16.6% 1. Quarter ending 9/30/06 2. Quarter ending 6/30/06 3. Avg over period ending 9/30/06 4. Avg over period ending 12/31/05 COMPARABLE GROUP GROWTH TRENDS Asking Rent Asking Rent Vacancy Vacancy Pct Year Qtr (square feet) Pct Change Rate Change 2001 4 $22.36 2.1% 15.3% 9.4% 2002 4 $22.08 -1.2% 14.9% -0.4% 2003 4 $21.77 -1.4% 14.6% -0.3% 2004 4 $21.53 -1.1% 20.2% 5.6% 2005 4 $21.76 1.1% 15.3% -4.9% 2005 1 $21.66 0.6% 19.9% -0.3% 2005 2 $21.55 -0.5% 16.3% -3.6% 2005 3 $21.62 0.3% 15.4% -0.9% 2005 4 $21.76 0.6% 15.3% -0.1% 2006 1 $21.79 0.1% 17.3% 2.0% 2006 2 $21.89 0.4% 18.7% 1.5% 2006 3 $22.02 0.6% 18.1% -0.7% Copyright 2006 Reis, Inc. Page 44
  • 46. Rent Comparables Office - Asset Advisor Rent Comparables 3000 Dundee Rd, Rd Northbrook, IL 60062 3000 Dundee Northbrook, IL -- 12/05/2006 Metro: Chicago COMPARABLE GROUP LOCATION Copyright 2006 Reis, Inc. Page 45
  • 47. Rent Comparables Office - Asset Advisor Rent Comparables 3000 Dundee Rd, Rd Northbrook, IL 60062 3000 Dundee Northbrook, IL -- 12/05/2006 Metro: Chicago COMPARABLE GROUP LISTING 1 Name 707 Lake Cook Building Current Asking Rent/SF $20.44 Address 707 Lake Cook Rd Current Vacancy Rate 51.2% City Deerfield Distance from Subject (miles) 1.06 State IL Property Size (SF) 80,000 ZIP 60015 Floors 3 County Lake Year Built 1979 Submarket North Class BC Data As Of 9/30/06 2 Name Deerfield Center II Current Asking Rent/SF $21.10 Address 1435 Lake Cook Rd Current Vacancy Rate 13.6% City Deerfield Distance from Subject (miles) 1.10 State IL Property Size (SF) 85,000 ZIP 60015 Floors 3 County Lake Year Built 1978 Submarket North Class BC Data As Of 9/30/06 3 Name Deerfield Center III Current Asking Rent/SF $21.18 Address 1627 Lake Cook Rd Current Vacancy Rate 12.8% City Deerfield Distance from Subject (miles) 1.26 State IL Property Size (SF) 85,000 ZIP 60015 Floors 3 County Lake Year Built 1980 Submarket North Class BC Data As Of 9/30/06 4 Name 1 Lane Center Current Asking Rent/SF $23.41 Address 1200 Shermer Rd Current Vacancy Rate 1.8% City Northbrook Distance from Subject (miles) 1.62 State IL Property Size (SF) 85,000 ZIP 60062 Floors 4 County Cook Year Built 1981 Submarket North Class BC Data As Of 9/30/06 Copyright 2006 Reis, Inc. Page 46
  • 48. Rent Comparables Office - Asset Advisor Rent Comparables 3000 Dundee Rd, Rd Northbrook, IL 60062 3000 Dundee Northbrook, IL -- 12/05/2006 Metro: Chicago COMPARABLE GROUP LISTING 5 Name Deerfield Center I Current Asking Rent/SF $20.96 Address 1425 Lake Cook Rd Current Vacancy Rate 14.2% City Deerfield Distance from Subject (miles) 1.10 State IL Property Size (SF) 85,000 ZIP 60015 Floors 3 County Lake Year Built 1976 Submarket North Class BC Data As Of 9/30/06 6 Name 3400 Dundee Road Bldg Current Asking Rent/SF $23.50 Address 3400 Dundee Rd Current Vacancy Rate 0.7% City Northbrook Distance from Subject (miles) 0.54 State IL Property Size (SF) 77,000 ZIP 60062 Floors 3 County Cook Year Built 1986 Submarket North Class BC Data As Of 9/30/06 7 Name Academy Office Court Current Asking Rent/SF $18.87 Address 650 Academy Dr Current Vacancy Rate 49.3% City Northbrook Distance from Subject (miles) 0.28 State IL Property Size (SF) 67,713 ZIP 60062 Floors 1 County Cook Year Built 1976 Submarket North Class BC Data As Of 9/30/06 8 Name Lake Cook Sanders Corp Center Current Asking Rent/SF $25.47 Address 4201 Lake Cook Rd Current Vacancy Rate 0.8% City Northbrook Distance from Subject (miles) 1.84 State IL Property Size (SF) 66,000 ZIP 60062 Floors 3 County Cook Year Built 1984 Submarket North Class BC Data As Of 9/30/06 Copyright 2006 Reis, Inc. Page 47
  • 49. Rent Comparables Office - Asset Advisor Rent Comparables 3000 Dundee Rd, Rd Northbrook, IL 60062 3000 Dundee Northbrook, IL -- 12/05/2006 Metro: Chicago COMPARABLE GROUP LISTING 9 Name Lake Cook Office Centre IV Current Asking Rent/SF $25.77 Address 1419 Lake Cook Rd Current Vacancy Rate 37.5% City Deerfield Distance from Subject (miles) 1.06 State IL Property Size (SF) 101,755 ZIP 60015 Floors 4 County Lake Year Built 1985 Submarket North Class BC Data As Of 9/30/06 10 Name Dundee Place Current Asking Rent/SF $19.75 Address 3100 Dundee Rd Current Vacancy Rate 3.2% City Northbrook Distance from Subject (miles) 0.13 State IL Property Size (SF) 115,866 ZIP 60062 Floors 1 County Cook Year Built 1986 Submarket North Class BC Data As Of 9/30/06 Copyright 2006 Reis, Inc. Page 48
  • 50. Sales Comparables
  • 51. Office - Asset Advisor Sales Comparables 3000 Dundee Rd Northbrook, IL 60062 Sales Comparables OfficeChicago Metro: Subject Property Location Name Asset Advisor Address/Area Searched 3000 Dundee Rd, Northbrook, IL, 60062 Metro Chicago Summary Statistics Low Average High * Gross Building Area (SF) 95,000 98,378 101,755 * Net Rentable Area (SF) 115,400 115,400 115,400 * Unspecified Building Area (SF) 28,500 129,533 257,000 Number of Floors 2 3 5 Year Built 1966 1988 2001 Distance From Subject (miles) 0.97 3.06 4.71 Time Since Sale (months) 10 11 12 Sale Price $2,700,000 $23,220,100 $58,400,000 Sale Price PSF (Gross Area) $119 $129 $138 Sale Price PSF (Rentable Area) $175 $175 $175 Sale Price PSF (Unspecified Area) $95 $185 $276 * Square footage is reported as Gross Building Area, and/or Net Rentable Area, or Unspecified Building Area. Each row, in the table above, related to size includes only those buildings in the corresponding size category. * In the case of a partial sale, the figures shown here include only the area purchased. Total Number of Properties 10 Copyright 2006 Reis, Inc. Page 1 of 12 Copyright 2006 Reis, Inc. Page 50
  • 52. Office - Asset Advisor Sales Comparables 3000 Dundee Rd Northbrook, IL 60062 Sales Comparables OfficeChicago Metro: Distance Address Submarket Year Built Floors Size (SF) Sale Price Price PSF Sale Date From Subject 11 Oct 2006R 1. 3000 Lakeside Dr 4.69 mi. North 1999 3 $34,500,000 205,402 $168 Bannockburn, IL 60015 18 Sep 2006R 2. 2315 Sanders Rd 2.29 mi. North 1980 2 $12,200,000 53,049 $230 Northbrook, IL 60062 02 Jun 2006R 3. 1020 Milwaukee Ave 3.72 mi. NW Suburbs 1988 3 $7,900,000 60,000 $132 Deerfield, IL 60015 22 May 2006R 4. 1900 E Lake Ave 4.71 mi. North 1966 3 $51,808,000 187,500 $276 Glenview, IL 60025 24 Mar 2006R 5. 2700 Patriot Blvd 3.08 mi. North 2001 4 $19,200,000 115,281 $167 Glenview, IL 60026 95,000GBA $138GBA 23 Mar 2006R 6. 3633 W Lake Ave 3.56 mi. North 1982 5 $13,143,000 Glenview, IL 60025 101,755GBA $119GBA 07 Mar 2006R 7. 1419 Lake Cook Rd 1.06 mi. North 1985 4 $12,100,000 Deerfield, IL 60015 8. 1901 Raymond Dr 2.27 mi. North 1988 2 $2,700,000 28,500 $95 15 Feb 2006 Northbrook, IL 60062 115,400NRA $175NRA 9. 155 Pfingsten Rd 0.97 mi. North 1987 3 $20,250,000 16 Jan 2006 Deerfield, IL 60015 10. 1200 Lakeside Dr 4.21 mi. North 1999 3 $58,400,000 257,000 $227 Dec 2005 Bannockburn, IL 60015 Copyright 2006 Reis, Inc. Page 2 of 12 Copyright 2006 Reis, Inc. Page 51
  • 53. Office - Asset Advisor Sales Comparables 3000 Dundee Rd Northbrook, IL 60062 Sales Comparables OfficeChicago Metro: Property Location and Physical Characteristics Property Name Bannockburn Corporate Center Property Type Multi-Tenant Address 3000 Lakeside Dr Building Area (SF) 205,402 City Bannockburn No. of Bldgs./Floors 1 / 3 State/ZIP/County IL / 60015 / Lake Year Built/Renovated 1999 / -- Metro (Submarket) Chicago (North) Asset Class A Comments Sale Details and Analysis Rec Sale Date 11 Oct 2006 Reis Cap Rate Analysis Proforma All per square foot figures are on an annual basis Sale Price $34,500,000 (Verified: Pub Rcrd) Rentable Area Assumption 205,402 SF Sale Price PSF $168 Vacancy at Sale Potential Rent Revenue $4,827,641 Vacancy Loss/Rate ($511,171) [10.9%] $22.88 Market Rent x 22,348 SF Seller 1. Transwestern Great Lakes LP / (312) 881-7084 / 200 W Madison Effective Rent Revenue $4,316,470 $23.59 In Place Rent x 183,054 SF St, Ste#3300, Chicago, IL 60606 Expense Reimbursements $68,530 [$0.33 PSF] ($8.38 PSF Exp. - Avg. Stop @ $8.01) x 183,054 SF Free Rent Concessions ($43,526) [$0.21 PSF] Credit Loss ($48,276) [1.0%] Buyer 1. YPI Bannockburn LLC / (818) 703-9600 / c/o Steven M Siemens, Additional Income $0 [$0.00 PSF] 5959 Topanga Canyon Blvd, Ste#130, Woodland Hills, CA 91367 Effective Gross Revenue $4,293,198 Operating Expenses ($1,721,269) [$8.38 PSF] Capital Reserve ($20,000) [$0.10 PSF] Net Operating Income $2,551,930 Comments Estimated Going-in Cap Rate 7.4% Based on Sale Price of $34,500,000 Reis Indexed Metro Off Cap Rate 7.2% (Q4 2006) Reported Cap Rate, This Sale None Additional Details When Available Seller's Broker Buyer's Broker Other Broker Lot Size Interest Purchased Time on Market Key Tenants Parcel Number 16-18-300-016 Deed Reference 6071956 Financing Details Other: Parking ratio of 4/1000SF. Copyright 2006 Reis, Inc. Page 3 of 12 Copyright 2006 Reis, Inc. Page 52
  • 54. Office - Asset Advisor Sales Comparables 3000 Dundee Rd Northbrook, IL 60062 Sales Comparables OfficeChicago Metro: Property Location and Physical Characteristics Property Name Property Type Multi-Tenant Address 2315 Sanders Rd Building Area (SF) 53,049 City Northbrook No. of Bldgs./Floors 1 / 2 State/ZIP/County IL / 60062 / Cook Year Built/Renovated 1980 / -- Metro (Submarket) Chicago (North) Asset Class -- Comments Sale Details and Analysis Rec Sale Date 18 Sep 2006 Reis Cap Rate Analysis Proforma All per square foot figures are on an annual basis Sale Price $12,200,000 (Verified: Pub Rcrd) Rentable Area Assumption -- Sale Price PSF $230 Vacancy at Sale Potential Rent Revenue -- Vacancy Loss/Rate -- Seller 1. 2315 Sanders Road LLC Effective Rent Revenue -- Expense Reimbursements -- Free Rent Concessions -- Credit Loss -- Buyer 1. 2315 Sanders Acquisition LLC / c/o Donlen Corp, 2315 Sanders Additional Income -- Rd, Northbrook, IL 60062 Effective Gross Revenue -- Operating Expenses -- Capital Reserve -- Net Operating Income -- Comments Estimated Going-in Cap Rate -- Reis Indexed Metro Off Cap Rate 7.3% (Q3 2006) Reported Cap Rate, This Sale None Additional Details When Available Seller's Broker Buyer's Broker Other Broker Lot Size 407,069 SF / 9.35 Acres Interest Purchased Time on Market Key Tenants Parcel Number 04-18-401-018 Deed Reference 0626139045 Financing Details Lasalle Bank NA provided a loan of $9,750,000 with a term ending 9/15/2007. Other: Copyright 2006 Reis, Inc. Page 4 of 12 Copyright 2006 Reis, Inc. Page 53
  • 55. Office - Asset Advisor Sales Comparables 3000 Dundee Rd Northbrook, IL 60062 Sales Comparables OfficeChicago Metro: Property Location and Physical Characteristics Property Name Deerfield Executive Center Property Type Multi-Tenant Address 1020 Milwaukee Ave Building Area (SF) 60,000 City Deerfield No. of Bldgs./Floors 1 / 3 State/ZIP/County IL / 60015 / Lake Year Built/Renovated 1988 / -- Metro (Submarket) Chicago (NW Suburbs) Asset Class B Comments Sale Details and Analysis Rec Sale Date 02 Jun 2006 Reis Cap Rate Analysis Proforma All per square foot figures are on an annual basis Sale Price $7,900,000 (Verified: Pub Rcrd) Rentable Area Assumption 60,000 SF Sale Price PSF $132 Vacancy at Sale Potential Rent Revenue $1,166,711 Vacancy Loss/Rate ($139,867) [11.8%] $19.83 Market Rent x 7,056 SF Seller 1. North Star Trust Co / 500 W Madison, Unit 3800, Chicago, Il Effective Rent Revenue $1,026,844 $19.36 In Place Rent x 52,944 SF 60661 Expense Reimbursements $31,707 [$0.53 PSF] ($7.17 PSF Exp. - Avg. Stop @ $6.57) x 52,944 SF Free Rent Concessions ($34,424) [$0.57 PSF] Credit Loss ($11,667) [1.0%] Buyer 1. Montesano Capital Management Inc / E Main St, 3rd Fl, Additional Income $0 [$0.00 PSF] Barrington, Il 60010 Effective Gross Revenue $1,012,460 Operating Expenses ($430,200) [$7.17 PSF] Capital Reserve ($5,814) [$0.10 PSF] Net Operating Income $576,446 Comments Estimated Going-in Cap Rate 7.3% Based on Sale Price of $7,900,000 Reis Indexed Metro Off Cap Rate 7.1% (Q2 2006) Reported Cap Rate, This Sale None Additional Details When Available Seller's Broker Buyer's Broker Other Broker Lot Size Interest Purchased Time on Market Key Tenants Parcel Number 15-35-103-017 Deed Reference 6001971 Financing Details American Chartered Bank provided a 7.37% loan in the amount of $6,320,000, expiring May 16, 2011. Other: 4 per 1,000 SF parking ratio. Copyright 2006 Reis, Inc. Page 5 of 12 Copyright 2006 Reis, Inc. Page 54
  • 56. Office - Asset Advisor Sales Comparables 3000 Dundee Rd Northbrook, IL 60062 Sales Comparables OfficeChicago Metro: Property Location and Physical Characteristics Property Name Property Type Multi-Tenant Address 1900 E Lake Ave Building Area (SF) 187,500 City Glenview No. of Bldgs./Floors 1 / 3 State/ZIP/County IL / 60025 / Cook Year Built/Renovated 1966 / -- Metro (Submarket) Chicago (North) Asset Class BC Comments Sale Details and Analysis Rec Sale Date 22 May 2006 Reis Cap Rate Analysis Proforma All per square foot figures are on an annual basis Sale Price $51,808,000 (Verified: Pub Rcrd) Rentable Area Assumption -- Sale Price PSF $276 Vacancy at Sale Potential Rent Revenue -- Vacancy Loss/Rate -- Seller 1. Walton GSP Glenview IV LLC Effective Rent Revenue -- Expense Reimbursements -- Free Rent Concessions -- Credit Loss -- Buyer 1. Glenview 1031 LLC / c/o Scott W Wilton, 2901 Butterfield Rd, Additional Income -- Oak Brook, IL 60523 Effective Gross Revenue -- Operating Expenses -- Capital Reserve -- Net Operating Income -- Comments Estimated Going-in Cap Rate -- Reis Indexed Metro Off Cap Rate 7.1% (Q2 2006) Reported Cap Rate, This Sale None Additional Details When Available Seller's Broker Buyer's Broker Other Broker Lot Size Interest Purchased Time on Market Key Tenants Parcel Number 04-26-300-032 Deed Reference 0614235171 Financing Details Lasalle Bank NA provided a loan of $33,675,000. Other: Copyright 2006 Reis, Inc. Page 6 of 12 Copyright 2006 Reis, Inc. Page 55
  • 57. Office - Asset Advisor Sales Comparables 3000 Dundee Rd Northbrook, IL 60062 Sales Comparables OfficeChicago Metro: Property Location and Physical Characteristics Property Name Prairie Glen Corporate Campus Property Type Multi-Tenant Address 2700 Patriot Blvd Building Area (SF) 115,281 City Glenview No. of Bldgs./Floors 1 / 4 State/ZIP/County IL / 60026 / Cook Year Built/Renovated 2001 / -- Metro (Submarket) Chicago (North) Asset Class A Comments Sale Details and Analysis Rec Sale Date 24 Mar 2006 Reis Cap Rate Analysis Proforma All per square foot figures are on an annual basis Sale Price $19,200,000 (Verified: Pub Rcrd) Rentable Area Assumption 115,281 SF Sale Price PSF $167 Vacancy at Sale Potential Rent Revenue $2,559,305 Vacancy Loss/Rate ($261,277) [10.2%] $22.22 Market Rent x 11,759 SF Seller 1. Catellus Operating LP Effective Rent Revenue $2,298,027 $22.19 In Place Rent x 103,522 SF Expense Reimbursements $80,908 [$0.70 PSF] ($7.78 PSF Exp. - Avg. Stop @ $7.00) x 103,522 SF Free Rent Concessions ($112,335) [$0.97 PSF] Credit Loss ($25,593) [1.0%] Buyer 1. GRE Prairie Glen LLC / c/o Alliance Commercial Partners LLC, Additional Income $0 [$0.00 PSF] 165 S Union Blvd, Ste#510, Lakewood, CO 80228 Effective Gross Revenue $2,241,008 Operating Expenses ($897,356) [$7.78 PSF] Capital Reserve ($11,528) [$0.10 PSF] Net Operating Income $1,332,123 Comments Estimated Going-in Cap Rate 6.9% Based on Sale Price of $19,200,000 Reis Indexed Metro Off Cap Rate 7.2% (Q1 2006) Reported Cap Rate, This Sale None Additional Details When Available Seller's Broker Buyer's Broker Other Broker Lot Size 366,528 SF / 8.41 Acres Interest Purchased Time on Market Key Tenants Parcel Number 04-22-101-040 Deed Reference 0608331085 Financing Details Allstate Life Insurance Co provided a loan of $13,111,000. Other: Copyright 2006 Reis, Inc. Page 7 of 12 Copyright 2006 Reis, Inc. Page 56
  • 58. Office - Asset Advisor Sales Comparables 3000 Dundee Rd Northbrook, IL 60062 Sales Comparables OfficeChicago Metro: Property Location and Physical Characteristics Property Name Glenlake Professional Office Center Property Type Multi-Tenant Building Area (SF) 95,000GBA Address 3633 W Lake Ave City Glenview No. of Bldgs./Floors 1 / 5 State/ZIP/County IL / 60025 / Cook Year Built/Renovated 1982 / -- Metro (Submarket) Chicago (North) Asset Class BC Comments Sale Details and Analysis Rec Sale Date 23 Mar 2006 Reis Cap Rate Analysis Proforma All per square foot figures are on an annual basis Sale Price $13,143,000 (Verified: Pub Rcrd) Sale Price PSF $138GBA Rentable Area Assumption 89,300 SF [NRA est] Vacancy at Sale Potential Rent Revenue $2,218,018 Vacancy Loss/Rate ($250,487) [11.0%] $25.50 Market Rent x 9,823 SF Seller 1. Glenlake LLC Effective Rent Revenue $1,967,532 $24.43 In Place Rent x 79,477 SF 2. Glenlake II LLC Expense Reimbursements $45,316 [$0.51 PSF] ($8.72 PSF Exp. - Avg. Stop @ $8.15) x 79,477 SF Free Rent Concessions ($108,054) [$1.21 PSF] Credit Loss ($22,180) [1.0%] Buyer 1. Glenlake Professional LLC / c/o Summit Real Estate Investments Additional Income $0 [$0.00 PSF] Inc, 2835 N Sheffield, Ste#217, Chicago, IL Effective Gross Revenue $1,882,614 Operating Expenses ($778,696) [$8.72 PSF] Capital Reserve ($9,500) [$0.11 PSF] Net Operating Income $1,094,418 Comments Estimated Going-in Cap Rate 8.3% Based on Sale Price of $13,143,000 Reis Indexed Metro Off Cap Rate 7.2% (Q1 2006) Reported Cap Rate, This Sale None Additional Details When Available Seller's Broker Buyer's Broker Other Broker Lot Size 206,143 SF / 4.73 Acres Interest Purchased Time on Market Key Tenants Parcel Number 04-28-300-029 Deed Reference 0608233174 Financing Details UBS Real Estate Investments Inc provided a loan of $10,593,000. Other: Copyright 2006 Reis, Inc. Page 8 of 12 Copyright 2006 Reis, Inc. Page 57
  • 59. Office - Asset Advisor Sales Comparables 3000 Dundee Rd Northbrook, IL 60062 Sales Comparables OfficeChicago Metro: Property Location and Physical Characteristics Property Name Lake Cook Office Centre IV Property Type Multi-Tenant Building Area (SF) 101,755GBA Address 1419 Lake Cook Rd City Deerfield No. of Bldgs./Floors 1 / 4 State/ZIP/County IL / 60015 / Cook Year Built/Renovated 1985 / -- Metro (Submarket) Chicago (North) Asset Class BC Comments Sale Details and Analysis Rec Sale Date 07 Mar 2006 Reis Cap Rate Analysis Proforma All per square foot figures are on an annual basis Sale Price $12,100,000 (Verified: Pub Rcrd) Sale Price PSF $119GBA Rentable Area Assumption 95,649 SF [NRA est] Vacancy at Sale Potential Rent Revenue $1,407,362 Vacancy Loss/Rate ($221,906) [16.0%] $14.50 Market Rent x 15,304 SF Seller 1. Massachusetts Mutual Life Insurance Co / (800) 542-6767 / Effective Rent Revenue $1,185,456 $15.00 In Place Rent x 80,345 SF Springfield, MA Expense Reimbursements $922,767 [$9.65 PSF] ($11.49 PSF Exp. - Avg. Stop @ $0.00) x 80,345 SF Free Rent Concessions ($100,085) [$1.05 PSF] Credit Loss ($14,074) [1.0%] Buyer 1. Walgreen Co / (847) 914-2500 / 104 Wilmot Rd, Deerfield, IL Additional Income $0 [$0.00 PSF] 60015 Effective Gross Revenue $1,994,064 Operating Expenses ($1,099,007) [$11.49 PSF] Capital Reserve ($10,176) [$0.11 PSF] Net Operating Income $884,882 Comments Estimated Going-in Cap Rate 7.3% Based on Sale Price of $12,100,000 Reis Indexed Metro Off Cap Rate 7.2% (Q1 2006) Reported Cap Rate, This Sale None Additional Details When Available Seller's Broker Buyer's Broker Other Broker Lot Size 314,808 SF / 7.23 Acres Interest Purchased Time on Market Key Tenants Parcel Number 04-05-101-006 Deed Reference 0606634037 Financing Details Other: Parking ratio of 4/1000SF. Copyright 2006 Reis, Inc. Page 9 of 12 Copyright 2006 Reis, Inc. Page 58
  • 60. Office - Asset Advisor Sales Comparables 3000 Dundee Rd Northbrook, IL 60062 Sales Comparables OfficeChicago Metro: Property Location and Physical Characteristics Property Name Raymond Drive Office Courts Property Type Multi-Tenant Address 1901 Raymond Dr Building Area (SF) 28,500 City Northbrook No. of Bldgs./Floors 1 / 2 State/ZIP/County IL / 60062 / Cook Year Built/Renovated 1988 / -- Metro (Submarket) Chicago (North) Asset Class BC Comments Sale Details and Analysis Sale Date 15 Feb 2006 Reis Cap Rate Analysis Proforma All per square foot figures are on an annual basis Sale Price $2,700,000 APX Rentable Area Assumption 28,500 SF Sale Price PSF $95 Vacancy at Sale Potential Rent Revenue $529,106 Vacancy Loss/Rate ($90,573) [16.7%] $19.03 Market Rent x 4,760 SF Seller 1. Trust 122213-05 Effective Rent Revenue $438,533 $18.23 In Place Rent x 23,741 SF Expense Reimbursements $4,140 [$0.15 PSF] ($5.01 PSF Exp. - Avg. Stop @ $4.84) x 23,741 SF Free Rent Concessions ($34,915) [$1.23 PSF] Credit Loss ($5,291) [1.0%] Buyer 1. Montesano Capital Management Inc Additional Income $0 [$0.00 PSF] Effective Gross Revenue $402,467 Operating Expenses ($142,785) [$5.01 PSF] Capital Reserve ($2,850) [$0.10 PSF] Net Operating Income $256,832 Comments Estimated Going-in Cap Rate 9.5% Based on Sale Price of $2,700,000 Reis Indexed Metro Off Cap Rate 7.2% (Q1 2006) Reported Cap Rate, This Sale None Additional Details When Available Seller's Broker Buyer's Broker Other Broker Lot Size Interest Purchased Time on Market Key Tenants Parcel Number Deed Reference Financing Details Other: 3.5: 1,000 SF parking ratio. Copyright 2006 Reis, Inc. Page 10 of 12 Copyright 2006 Reis, Inc. Page 59
  • 61. Office - Asset Advisor Sales Comparables 3000 Dundee Rd Northbrook, IL 60062 Sales Comparables OfficeChicago Metro: Property Location and Physical Characteristics Property Name Cross Creek Property Type Multi-Tenant Building Area (SF) 115,400NRA Address 155 Pfingsten Rd City Deerfield No. of Bldgs./Floors 1 / 3 State/ZIP/County IL / 60015 / Lake Year Built/Renovated 1987 / -- Metro (Submarket) Chicago (North) Asset Class A Comments Sale Details and Analysis Sale Date 16 Jan 2006 Reis Cap Rate Analysis Proforma All per square foot figures are on an annual basis Sale Price $20,250,000 Sale Price PSF $175NRA Rentable Area Assumption 115,400 SF Vacancy at Sale Potential Rent Revenue $2,640,871 Vacancy Loss/Rate ($152,291) [5.7%] $23.04 Market Rent x 6,612 SF Seller 1. Fulcrum Asset Advisors Effective Rent Revenue $2,488,580 $22.86 In Place Rent x 108,788 SF Expense Reimbursements $38,360 [$0.33 PSF] ($7.10 PSF Exp. - Avg. Stop @ $6.75) x 108,788 SF Free Rent Concessions ($58,928) [$0.51 PSF] Credit Loss ($26,409) [1.0%] Buyer 1. Colony Capital Additional Income $0 [$0.00 PSF] Effective Gross Revenue $2,441,604 Operating Expenses ($819,340) [$7.10 PSF] Capital Reserve ($11,540) [$0.10 PSF] Net Operating Income $1,610,724 Comments Estimated Going-in Cap Rate 8.0% Based on Sale Price of $20,250,000 Reis Indexed Metro Off Cap Rate 7.2% (Q1 2006) Reported Cap Rate, This Sale None Additional Details When Available Seller's Broker Buyer's Broker Other Broker Lot Size Interest Purchased Time on Market Key Tenants Parcel Number 16-33-304-018 Deed Reference Financing Details Other: 4:1,000 SF parking ratio.This property sold August 2003; see Reis sales comparables ID number 71314. Copyright 2006 Reis, Inc. Page 11 of 12 Copyright 2006 Reis, Inc. Page 60
  • 62. Office - Asset Advisor Sales Comparables 3000 Dundee Rd Northbrook, IL 60062 Sales Comparables OfficeChicago Metro: Property Location and Physical Characteristics Property Name Bannockburn Centre Property Type Multi-Tenant Address 1200 Lakeside Dr Building Area (SF) 257,000 City Bannockburn No. of Bldgs./Floors 1 / 3 State/ZIP/County IL / 60015 / Lake Year Built/Renovated 1999 / -- Metro (Submarket) Chicago (North) Asset Class A Comments Building consists of four wings that connect to a central core. The exterior is a concrete facade with sandblasted reveals and reflective blue glass, including a curtain-wall at the building's entrance. The lobby is a combination of terrazzo and granite which highlights the 3-story atrium located in the center of the building. Sale Details and Analysis Sale Date Dec 2005 Reis Cap Rate Analysis Proforma All per square foot figures are on an annual basis Sale Price $58,400,000 (Verified: Buyer) Rentable Area Assumption 257,000 SF Sale Price PSF $227 Vacancy at Sale 0.0% (excludes sublease) Potential Rent Revenue $6,103,750 Vacancy Loss/Rate ($0) [0.0%] $22.91 Market Rent x 0 SF Seller 1. Prentiss Properties / (214) 654-0886 / Dallas, TX Effective Rent Revenue $6,103,750 $23.75 In Place Rent x 257,000 SF Expense Reimbursements $182,470 [$0.71 PSF] ($7.53 PSF Exp. - Avg. Stop @ $6.82) x 257,000 SF Free Rent Concessions ($0) [$0.00 PSF] Credit Loss ($61,038) [1.0%] Buyer 1. HRPT Properties / (617) 332-3990 / Newton, MA Additional Income $0 [$0.00 PSF] Effective Gross Revenue $6,225,183 Operating Expenses ($1,935,210) [$7.53 PSF] Capital Reserve ($25,800) [$0.10 PSF] Net Operating Income $4,264,173 Comments Part of a 5 building portfolio sale totaling 655,000SF and selling for Estimated Going-in Cap Rate 7.3% Based on Sale Price of $58,400,000 $131,060,000 see Reis Sales Comparables ID numbers 116821, 116830, 116847. Reis Indexed Metro Off Cap Rate 7.4% (Q4 2005) Reported Cap Rate, This Sale 7.5% Additional Details When Available Seller's Broker Buyer's Broker Other Broker Lot Size 745,747 SF / 17.12 Acres Interest Purchased Time on Market Key Tenants Parcel Number Deed Reference Financing Details Other: Parking ration of 4/1000SF. There are also 33 underground parking spaces for executive parking. Copyright 2006 Reis, Inc. Page 12 of 12 Copyright 2006 Reis, Inc. Page 61