This document summarizes commercial real estate trends in 2011. It discusses topics such as global growth rates, investment sales, vacancy trends, construction activity, rents, pricing, employment data, consumer confidence, and leasing and investment market conditions for office, industrial, and retail properties. It identifies several U.S. cities that are top picks for commercial real estate investment in 2011.

1. TRENDS 2011 The Outlook for Commercial Real Estate February 23, 2011 Ross Moore – Chief Economist

3. Global Investment Sales

4. Global Capital Flows

5. Vacancy Trends

6. Construction Activity

7. World’s Top Rents

9. Currency Wars

10. Food Prices

11. Rising Energy Prices

12. Eurozone Sovereign Debt

13. U.S. Debt Ceiling

14. Fiscal Drag – State and Local Levels

15. U.S. Housing Market

17. Nonfarm Payroll Creation from Onset of Recession (months)

18. Employment – Private Sector(Month-over-Month Change)

19. Unemployment Rate(Total and College Graduate)

21. “Small business is the backbone of the U.S. economy.”

22. Small businesses lack the financial cushion or global expansion opportunities of large corporations

24. Job Growth - Top Ten Markets% Change from Dec 2009 to Dec 2010

25. Job Growth - Bottom Ten Markets% Change from Dec 2009 to Dec 2010

26. Job Growth by Metropolitan Area – 2010/2014Source: Moody’s Analytics

27. Consumer Confidence

28. Institute for Supply ManagementManufacturing Index

29. Trade: Exports – Goods($ Million, S.A.)

30. Inflation: Year/Year Change(%)

31. Gross Domestic ProductReal – Annual %, SAAR, Forecast – IHS Global Insight

32. Banks Accumulated Cash($ Trillion)

33. Consumer Revolving Credit($ Billion, S.A.)

34. Corporate Profits(Billion $, SAAR)

36. Lease term gradually getting longer

37. Very few tenants taking additional space, but……

38. Tenants still demanding (and getting) free rent and inducements

39. Rents in most markets still “bottoming out”

41. Office Rental Rates(USD per SF)

42. Industrial Absorption, New Supply & Vacancy Rate(Million SF & %)

43. Industrial Warehouse Rental Rates(Dollar, Square Foot)

44. Retail Shopping Center Absorption, New Supply & Vacancy Rate (Million SF & %)

45. Retail Shopping Center Rental Rates(Dollar, Square Foot)

47. Distressed Market - now up to 22% of total sales

48. Pricing - cap rates down across all property types

50. Commercial/Multi-Family Mortgage Delinquency Rates

51. Total Outstanding Distress

52. U.S. CMBS Originations($ Billions)

53. Office Investment Sales($ Billions)

54. Industrial Investment Sales($ Billions)

55. Retail Investment Sales($ Billions)

56. Office Capitalization Rates

57. Industrial Capitalization Rates

58. Retail Capitalization Rates

59. Average Overall Cap Rates vs.10-yr Treasury Notes

61. Baltimore, Boston, NYC, Miami, Portland and Raleigh**

62. Phoenix*

63. Seattle*

64. Houston*

65. Austin*