National Office

Trends Report
2nd Quarter 2010
 Contents

U.S. Office Sector Analysis........................................................................3-5

Investment Sales.........................................................................................6
Net Absorption by Metro . .........................................................................7-8
Vacancy Rates by Metro .........................................................................9-10
Asking Rents by Metro .........................................................................11-12
Inventory by Metro ...............................................................................13-14
Methodology.............................................................................................15
*Updated July 12, 2010

Kevin Thorpe
Chief Economist
2101 L Street, NW, Ste. 700
Washington, DC 20037
Kevin.Thorpe@cassidyturley.com

2 | Cassidy Turley
U.S. Office Sector Analysis
Kevin Thorpe, Chief Economist
Market Overview

• For the first time in 2 years, the demand for office space exceeded what was returned to
the market. Net absorption was +6.5 million square feet in the second quarter of 2010, Market Indicators
the first period of positive demand since the first quarter of 2008. 2nd Quarter 2010

2010 12-month
• The U.S. economy created 95,000 office-using jobs in the second quarter of Q2 Forecast
2010. Assuming 200 square feet per worker, the math suggests the market should
have absorbed 19.0 million square feet for the quarter. The discrepancy between Net Absorption +6.5 M
actual absorption and estimated absorption based on job growth is largely due to a
phenomenon called shadow space (i.e. businesses are simply filling up existing space Vacancy 16.9%
that they weren’t using during the recession).
Asking Rents $21.56
• For the most part, demand kept pace with new supply, and as a result, national office
vacancy remained flat compared to the previous quarter at 16.9%. Still, this is the
highest vacancy has been since 1993. Of the 80 major metros tracked, 42 posted Under 32.8 M
Construction
increases in vacancy, 33 markets posted declines, and 5 markets posted no change.

• National rents are stabilizing, but not appreciating. Average asking rents fell $0.17
from the first to the second quarter of 2010 to $21.56. Effective rents, which strip out
TIs and free rent, remained flat at $17.65.

• The development pipeline has slowed dramatically. There is currently 32.8 million
square feet under construction, compared to 49 million square feet that delivered in
2009, and 61.1 million square feet that delivered in 2008.

• Investment sales have recently taken on a brighter hue. From Jan-May of 2010, U.S.
office sales volume was $7.42 billion, up 39% compared to this same period one
year-ago. Cap rates continue to compress, and are down over 100 basis points from
their peak in December of 2009. Demand remains robust for core product in top tier
markets such as New York, Washington DC, San Francisco, and Boston. Pricing in
these markets has moved up dramatically since hitting a low point in 2009. Sales of
value-add properties are few and far between and the challenge of price discovery for
these assets continues.

U.S. Absorption vs. Vacancy U.S. Office-using Employment

30 18%
200
16%
20 100
14%

10 12% 0
Millions, Sq. Ft.

Q2 07

Q3 07

Q4 02

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

10%
0 -100
8%
000's

-200
-10 6%

4% -300
-20
2%
-400
-30 0%

-500
2
20 1Q

20 2Q

20 3Q

20 4Q

20 1Q

20 2Q
20 3Q

20 4Q

20 1Q

20 2Q

20 3Q

20 4Q

20 1Q

20 2Q
20 3Q

20 4Q

20 1Q

20 2Q

20 3Q

20 4Q

20 1Q
Q
05

05

05

05

06

06

06
06

07

07

07

07

08

08

08
08

09

09

09

09

10

10
20

-600
Absorption Vacancy
Office-using
Source: Cassidy Turley Research Source: BLS

cassidyturley.com | 3
U.S. Office Sector Analysis
Market Outlook

• As expected, the U.S. economy has experienced some recent setbacks as it transitions Asking Rents
from a stimulus-led recovery to a self-sustaining expansion. Private sector job growth in Selected Metros, 2nd Quarter 2010
particular has been disappointing, creating a meager 98,000 jobs per month from Jan-
June 2010, well below the 125,000 jobs needed to keep the unemployment rate stable. %
Even under bullish economic scenarios, unemployment will not reach pre-recession Rents Change
(y/y)
levels prior to 2013.
New York, NY $50.19 -4.9%

• History suggests a double dip scenario is highly unlikely. Post WWII business cycles Washington DC $48.39 2.1%

consistently show that recovery periods are bumpy and uneven, and are often fraught San Mateo County, CA $31.32 -6.5%

with setbacks. However, rarely do these setbacks result in a double dip recession. San Jose, CA $31.20 -8.8%

There has only been one double dip recession since 1938 (the double dip of 1980 San Francisco, CA $30.82 -16.2%

& 1982). More often than not (9 out of the last 10 business cycles) recessions are Suburban VA $29.64 -0.3%

followed by a 5-7 year period of economic expansion. Los Angeles, CA $29.51 -6.1%

Fairfield, CT $29.18 -8.3%

• Uncertainty related to government policy is inhibiting job growth. Lack of clarity Miami, FL $28.78 -2.7%
regarding the regulatory environment (healthcare reform, financial regulatory reform, Boston, MA $28.27 -8.3%
taxes, and energy policy) has slowed the statistical relationship between rising corporate
San Diego, CA $27.96 -6.8%
profits (which are up 34% compared to a year-ago) and job creation. Corporate
West Palm Beach, FL $27.89 -2.3%
profits typically lead job creation by 6 to 9 months – but this relationship is tracking
Seattle, WA $27.27 -5.4%
much slower in the current recovery. This, in combination with jitters surrounding the
Suburban MD $26.52 -3.5%
European debt crisis, has the majority of business leaders delaying aggressive hiring.
Long Island, NY $26.41 -0.4%

• The growing uncertainty will slow the recovery in the office sector, but will not derail Westchester, NY $25.71 -10.9%

it. U.S. real GDP will grow 3.1% in 2010, and the growth rate will be similar in 2011. Northern New Jersey $25.36 -4.9%

Office-using job growth will continue to be slow in 2010, but as businesses regain Ft. Lauderdale, FL $24.98 -1.9%

confidence in the self-sustaining expansion, hiring will pick up in greater numbers in Austin, TX $24.87 -1.6%

2011 in order to keep pace with growing demand. For the office market, 2010 will Chicago, IL $24.70 -2.7%

be the year of positive demand for office space, 2011 will be the year of stabilizing Oakland-East Bay, CA $24.58 -2.9%

vacancy, and 2012 will be the year of rental appreciation.

Source: Cassidy Turley Research

Double Dip Recessions Are Rare

Real GDP, % Change Annualized
20
Just 1 double dip
recession since
15
post WWII

10

0
1947Q2
1949Q4

1952Q2
1954Q4

1957Q2
1959Q4
1962Q2
1964Q4

1967Q2
1969Q4

1972Q2
1974Q4
1977Q2
1979Q4

1982Q2
1984Q4

1987Q2
1989Q4

1992Q2

1994Q4
1997Q2

1999Q4
2002Q2

2004Q4
2007Q2

2009Q4

-5

-10

-15
Source: U.S. Census Bureau

4 | Cassidy Turley
U.S. Office Sector Analysis
Regional Summary
The South region led all regional markets,
recording +4.9 million square feet of
absorption. The Washington DC Metro
led the way with +1.7 million square
feet of positive demand. The gain was
largely due to several new deliveries that
were pre-leased - mostly to the Federal
Government - from deals signed prior to
the second quarter of 2010. However,
strong job creation in the DC metro also
helped the region absorb 316,000 square
feet of sublease space. Of the 32 markets
tracked in the South, 19 registered positive
absorption. Vacancy in the South region
declined 10 basis points when compared
to the previous quarter to 16.3%. Asking
rates in the south remained flat at $20.81
in the second quarter of 2010.
The West region also recorded a significant
improvement in demand in the second
quarter of 2010. Net absorption registered
+1.18 million square feet, marking the first
period of positive absorption since the third
quarter of 2007. San Jose led the region
DC Metro & New York City Stand Tall
YTD 2010 Net Absorption
5 2.0%
4 1.5%
3 1.0%
2 0.5%
Millions Square Feet
1
0
New York, NY DC Metro
-1
-2
-3
-4
-5
Source: Cassidy Turley Research
with +987,000 square feet of absorption, country with +2.2 million square feet of net
followed by Denver-Aurora with +833,000 demand. For the year, New York City has
square feet. Vacancy in the West remained absorbed 4.7 million square feet, which is
flat at 17.3% in the second quarter of 2010 not far off the absorption levels recorded
compared to the previous quarter, while during the boom period of 2004 to 2006.
asking rents inched down from $23.59 to Other markets that recorded positive
$23.52 over the same period. demand included New Haven, Portland,
Rochester, and Syracuse. Vacancy in the
In the Midwest region, net absorption Northeast region increased 10 basis point
registered +365,800 square feet in the from the previous quarter to 15.5%, and
second quarter of 2010, a significant asking rents fell from $23.48 to $23.31
turnaround from the -2.3 million square over the same period.
feet recorded in the previous quarter.
However, the bulk of this improvement
was concentrated in one metro area—
Chicago, which posted +1.2 million
square feet. Other than Chicago, only
3 metros in the Midwest posted positive
gains (Minneapolis, Omaha, and Tulsa).
Vacancy in the Midwest rose 20 basis
points from the previous quarter to 18.9%.
Asking rents fell slightly from $18.82 to
$18.54 over the same period.
The Northeast region registered +55,000
square feet of absorption in the second
quarter of 2010. New York City led the
Absorption as % of Inventory
Q2 2010
0.0%
Suburban VA
Austin
Wichita
Washington DC
Salt Lake City
Indianapolis
Las Vegas
San Francisco
Cincinnati
Boston
New York, NY
Suburban MD
San Jose
Phoenix
San Diego
Nashville
Denver
San Mateo
Rest of U.S. -0.5%
-1.0%
-1.5%
-2.0%
Source: Cassidy Turley Research
cassidyturley.com | 5
Investment Sales
Office sales have experienced a marked improvement, and as a result, they are Office Sales by Metro
increase in activity, but the market bringing a growing number of assets to the January - May 2010
remains bifurcated between core product market. Through May of 2010, buildings
and value-add and top tier markets vs. on the market were up 29% compared to $ Volume Avg Cap
(Millions) PPU Rate
secondary/tertiary markets. Sales activity a year-ago. Despite the general positive
Manhattan, NY $1,022.2 $312 6.1%
in May represented the highest volume of trend in investment sales, there is a clear
Boston, MA $651.0 $230 7.7%
closed sales so far in 2010. In all, dollar lack of value-add properties selling. Of the
Houston, TX $499.8 $181 10.4%
volume registered $1.9 billion in May, an 247 office transactions that have closed in
Northern NJ $388.3 $152 N/A
increase of 124% from April. Moreover, the 2010, less than 10% fall into the value-add
Washington, DC $336.4 $458 6.2%
momentum is expected to continue as piles category.
San Francisco, CA $313.1 $284 5.6%
of cash begin to move off of the sidelines.
The issue of distressed assets is not going Suburban VA $253.4 $238 7.6%
According to the Federal Reserve, in March
away; in fact, the problem has become Orange County, CA $249.3 $278 8.1%
nonfinancial companies had $1.84 trillion of
more pronounced in the last two months. San Jose, CA $223.1 $187 N/A
cash on reserve and commercial banks had
According to Real Capital Analytics, there Chicago, IL $216.0 $98 10.1%
over $1 trillion in excess reserves. Thus far,
were an additional $9.3 billion listed as Los Angeles, CA $193.8 $206 8.3%
the prime target for investors has been core
distressed assets in May, up from $5 billion Suburban MD $175.9 $193 N/A
product in top tier markets. For the first
listed in April. However, more than half Denver, CO $174.4 $201 7.8%
half of 2010, sales of significant properties
of the increase in May was related to the
in Manhattan, Washington, DC, Boston, Tampa, FL $157.2 $131 9.4%
transfer of $4.9 billion in assets to special
San Francisco, and Southern California Seattle, WA $153.5 $249 9.0%
servicing from one hefty portfolio. As of
accounted for over 70% of total office Dallas, TX $131.0 $79 7.4%
June 2010, the loan status of that portfolio
sales volume in the U.S. Pricing has been San Diego, CA $124.5 $214 N/A
was reported as “current”. Although the
pushed up rapidly as numerous investors St Louis, MO $96.1 $69 N/A
levels of defaults and foreclosures continue
chase quality assets in these markets. A few Portland, OR $94.4 $179 9.2%
to rise, the severity of the problem varies
examples of high-end purchases include: Charlotte, NC $63.9 $32 N/A
greatly by local market. In the majority
1350 Eye St. NW in Washington DC, which
of the largest metros, distressed assets
sold for $549 psf; Two Constitution Square Source: Real Capital Analytics, Cassidy Turley Research
represent less than 5% of total inventory.
in Washington DC which sold for $518 psf;
Moreover, in most markets, the distressed
Manhattan Tower, New York, NY, which sold
assets are concentrated in the suburbs,
for $636 psf; Six Times Square in New York,
which are viewed as a separate product
NY which sold for $604 psf; and Lexington
relative to CBD properties; thus, the impact
Technology Park in Lexington MA, which
on overall pricing has been negligible.
sold for $460 psf. Overall, transaction
The chart below shows distressed assets
prices on all significant office properties
as a percentage of inventory for selected
rose 17.2% from April to May -- to $188
metropolitan areas.
psf. Owners are sensing a window of price

Distressed Property U.S. Office Sales Volume

As a % of Total Inventory, May 2010

$9
16%
$8
14%
$7
12%
$6
10%
Billions

$5
8%
$4
6%
$3
4% $2
2% $1

0% $0
DC VA burbs
Dayton

Cleveland
Denver

DC
Palm Beach
Houston

Buffalo
Boston

Austin

Chicago

Greensboro

Hartford
Cincinnati
Detroit
Dallas

Atlanta
Columbus

Charlotte

Jacksonville
Long Island

Miami
Pittsburgh

Lexington

Orlando

Portland
Seattle

Las Vegas
Phoenix

Tampa

Indianapolis
Memphis

08

09
S

S
M

M
10
J

J
N

N
J
J

closed

Source: Real Capital Analytics, Cassidy Turley Research Source: Real Capital Analytics, Cassidy Turley Research

6 | Cassidy Turley
Net Absorption
2007 2008 2009 2009 Q2 2009 Q3 2009 Q4 2010 Q1r 2010 Q2p
United States 53,320,000 -22,116,000 -62,586,000 -19,094,000 -14,224,000 -6,961,000 -3,720,000 6,502,000
Northeast 5,144,000 -15,407,000 -17,494,000 -6,599,000 -3,481,000 -362,000 1,571,000 55,000
Midwest 11,357,000 -588,000 -9,224,000 -1,674,000 -1,505,000 -3,235,000 -2,305,000 357,000
South 24,105,000 6,542,000 -13,721,000 -3,914,000 -3,825,000 -1,010,000 -1,481,000 4,909,000
West 12,714,000 -12,663,000 -22,147,000 -6,907,000 -5,413,000 -2,354,000 -1,505,000 1,181,000

Albuquerque, NM 137,000 12,000 -396,000 82,000 -178,000 -159,000 115,000 -156,000

Anaheim-Santa Ana, CA 349,000 -2,621,000 -3,949,000 -1,223,000 -731,000 -1,106,000 -23,000 -316,000
Atlanta-Sandy Springs-Marietta, GA 3,751,000 174,000 -1,740,000 -347,000 -636,000 -217,000 -157,000 -121,000
Austin-Round Rock, TX 1,157,000 938,000 -131,000 60,000 133,000 -154,000 -137,000 623,000
Baltimore, MD 781,000 448,000 62,000 208,000 -126,000 682,000 -989,000 -28,000
Birmingham-Hoover, AL 429,000 449,000 -617,000 -112,000 -134,000 -269,000 -92,000 71,000
Boston-Cambridge, MA 2,115,000 293,000 -1,232,000 30,000 -267,000 -88,000 -316,000 -600,000
Buffalo-Niagara Falls, NY 605,000 103,000 -130,000 5,000 -54,000 -67,000 -66,000 -8,000
Charleston-North Charleston, SC -51,000 172,000 -275,000 -129,000 -32,000 21,000 -20,000 161,000
Charlotte-Gastonia-Concord, NC-SC* 796,000 533,000 220,000 -112,000 -384,000 577,000 698,000 721,000
Chattanooga, TN-GA -120,000 15,000 -33,000 -12,000 -68,000 9,000 -109,000 44,000
Chicago-Naperville-Joliet, IL 3,952,000 332,000 -3,223,000 -716,000 -373,000 -958,000 -1,026,000 1,175,000
Cincinnati-Middletown, OH-KY-IN 972,000 328,000 29,000 52,000 60,000 33,000 -183,000 -122,000
Cleveland-Elyria-Mentor, OH 572,000 -254,000 -438,000 -86,000 -59,000 -266,000 -62,000 114,000
Colorado Springs, CO 91,000 -340,000 -244,000 -38,000 -62,000 -155,000 210,000 102,000
Columbia, SC 61,000 124,000 -75,000 -34,000 -69,000 -42,000 -54,000 -103,000
Columbus, OH 723,000 678,000 -641,000 -159,000 -111,000 -345,000 -186,000 -80,000
Dallas-Fort Worth, TX 2,286,000 -240,000 -1,084,000 -480,000 -309,000 -223,000 -377,000 1,094,000
Dayton, OH -293,000 -195,000 -825,000 -312,000 -55,000 -355,000 -184,000 -46,000
Denver-Aurora, CO 1,104,000 84,000 -2,075,000 -928,000 -554,000 -189,000 121,000 833,000
Detroit-Warren-Livonia, MI -384,000 -2,750,000 -1,534,000 -180,000 -388,000 -287,000 -368,000 -116,000
Fairfield, CT 114,000 -771,000 -2,305,000 -497,000 -948,000 -180,000 -105,000 -714,000
Ft. Lauderdale, FL -255,000 -168,000 -947,000 -209,000 -273,000 -136,000 -63,000 -19,000
Greensboro-Winston-Salem, NC 53,000 293,000 84,000 5,000 16,000 -62,000 -17,000 131,000
Greenville, SC 63,000 181,000 -367,000 -20,000 -92,000 -194,000 13,000 -27,000

Hartford, CT -56,000 -376,000 -412,000 -113,000 -33,000 -199,000 73,000 -122,000

Honolulu, HI -358,000 -183,000 261,000 183,000 -12,000 101,000 -5,000 139,000

Houston-Baytown-Sugar Land, TX 5,288,000 1,263,000 -481,000 -330,000 -99,000 -331,000 -200,000 -94,000
Indianapolis, IN 1,087,000 246,000 -652,000 -170,000 -283,000 -16,000 -28,000 -276,000
Jacksonville, FL 357,000 -257,000 -585,000 -237,000 -205,000 24,000 -143,000 171,000
Kansas City, MO-KS 1,482,000 318,000 -530,000 -68,000 -14,000 -197,000 -126,000 -15,000
Knoxville, TN 189,000 164,000 -204,000 -51,000 -68,000 -7,000 -16,000 234,000
Las Vegas-Paradise, NV 1,198,000 -66,000 -941,000 -191,000 -285,000 -289,000 -80,000 -237,000
Lexington-Fayette, KY 79,000 -144,000 15,000 50,000 43,000 -16,000 -27,000 -49,000
Little Rock-N. Little Rock, AR 100,000 -101,000 -142,000 -73,000 -62,000 -59,000 -15,000 -36,000
Los Angeles-Long Beach-Glendale, CA 1,123,000 -3,362,000 -4,514,000 -1,172,000 -1,453,000 -602,000 -1,235,000 -538,000
Louisville, KY-IN 287,000 -21,000 -364,000 -168,000 -98,000 19,000 -184,000 -155,000
Madison, WI 145,000 153,000 44,000 6,000 13,000 48,000 -1,000 -231,000
Memphis, TN-MS-AR 153,000 -58,000 -289,000 -136,000 -1,000 16,000 -193,000 143,000
Miami-Dade, FL -49,000 -535,000 -796,000 -349,000 -144,000 -2,000 -78,000 282,000
Milwaukee-Waukesha-West Allis, WI 405,000 147,000 90,000 54,000 67,000 5,000 -60,000 -117,000
Minneapolis-St. Paul, MN-WI 887,000 -631,000 -1,799,000 -335,000 -42,000 -844,000 -164,000 49,000
Nashville-Davidson-Murfreesboro, TN 1,199,000 1,151,000 -83,000 -205,000 169,000 177,000 6,000 535,000
New Haven-Milford, CT 226,000 -261,000 -1,488,000 -330,000 -517,000 -352,000 6,000 144,000

cassidyturley.com | 7
Net Absorption
2007 2008 2009 2009 Q2 2009 Q3 2009 Q4 2010 Q1r 2010 Q2p
New Orleans-Metairie-Kenner, LA -208,000 -608,000 312,000 125,000 5,000 38,000 -89,000 -112,000
New York, NY 1,846,000 -13,792,000 -10,871,000 -4,267,000 -771,000 -588,000 2,491,000 2,172,000
Long Island, NY -123,000 694,000 733,000 -108,000 -63,000 612,000 -204,000 -209,000
Northern New Jersey 105,000 -1,363,000 -71,000 -583,000 -568,000 562,000 334,000 175,000
Central New Jersey -3,057,000 -804,000 -612,000 -700,000 -145,000 181,000 25,000 -142,000
Oakland-East Bay, CA 481,000 -2,480,000 -1,210,000 -458,000 -431,000 59,000 -75,000 -64,000
Oklahoma City, OK 575,000 -189,000 126,000 78,000 40,000 -65,000 -65,000 -112,000
Omaha, NE-IA 152,000 -147,000 -154,000 41,000 -72,000 -64,000 36,000 141,000
Orlando, FL 286,000 -235,000 -1,242,000 -272,000 -331,000 -111,000 -137,000 63,000
West Palm Beach-Boca Raton, FL -194,000 381,000 -810,000 -134,000 -196,000 -236,000 -57,000 -89,000
Philadelphia-Camden, PA-NJ 2,000,000 -160,000 -1,160,000 -311,000 -237,000 -518,000 -432,000 -245,000
Phoenix-Mesa-Scottsdale, AZ 1,698,000 -1,072,000 -610,000 168,000 -148,000 -136,000 -66,000 183,000
Pittsburgh, PA 1,191,000 783,000 322,000 63,000 270,000 199,000 89,000 -119,000
Portland, ME -31,000 194,000 8,000 12,000 -82,000 40,000 -55,000 35,000
Portland-Beaverton, OR-WA 70,000 -655,000 -1,158,000 -388,000 -193,000 -145,000 -214,000 -133,000
Raleigh-Durham, NC 1,363,000 1,912,000 -142,000 -489,000 65,000 322,000 -185,000 211,000
Rochester, NY 69,000 -44,000 -87,000 -22,000 12,000 -71,000 -87,000 87,000
Sacramento, CA 676,000 1,390,000 -105,000 -517,000 209,000 225,000 -84,000 -678,000
Saint Louis, MO-IL 1,496,000 702,000 -137,000 -13,000 -177,000 -175,000 19,000 -7,000
Salt Lake City, UT 355,000 -1,000 -559,000 -283,000 -108,000 -30,000 26,000 503,000
San Antonio, TX 1,047,000 476,000 303,000 355,000 15,000 51,000 -99,000 180,000
San Diego-San Marcos, CA 756,000 -789,000 -476,000 -404,000 -220,000 464,000 485,000 -193,000
San Francisco, CA 740,000 -1,306,000 -1,900,000 -635,000 -248,000 -170,000 -70,000 -254,000
San Jose-Sunnyvale-Santa Clara, CA 1,653,000 -1,623,000 -1,322,000 -176,000 -71,000 -77,000 -155,000 988,000
San Mateo County, CA 867,000 -868,000 -640,000 -577,000 59,000 191,000 -52,000 310,000
Seattle-Tacoma-Bellevue, WA 1,555,000 1,223,000 -1,797,000 -304,000 -862,000 -244,000 -419,000 717,000
Suburban MD 732,000 -942,000 -686,000 148,000 -139,000 -271,000 -82,000 138,000
Suburban VA 1,970,000 1,279,000 -1,713,000 -665,000 -267,000 -109,000 415,000 607,000
Syracuse, NY 47,000 44,000 -120,000 -5,000 -101,000 -1,000 79,000 -14,000
Tampa-St.Petersburg-Clearwater, FL 698,000 -1,218,000 -2,080,000 -122,000 -594,000 -539,000 -38,000 58,000
Tucson, AZ 161,000 187,000 -354,000 -46,000 -55,000 -159,000 -15,000 -43,000
Tulsa, OK -209,000 550,000 -73,000 -25,000 -68,000 13,000 81,000 150,000
Ventura County, CA 57,000 -195,000 -157,000 -1,000 -70,000 69,000 28,000 18,000
Washington, DC 1,489,000 755,000 116,000 -231,000 88,000 85,000 928,000 960,000
Wichita, KS 160,000 487,000 547,000 213,000 -73,000 187,000 28,000 -113,000
Westchester, NY 95,000 53,000 -69,000 227,000 21,000 106,000 -261,000 -387,000

Methodology explained on page 15

p = preliminary
r = revision
*Unconfirmed absorption; not included in U.S. and Regional totals

8 | Cassidy Turley
Office Vacancy Rates
2007 2008 2009 2009 Q2 2009 Q3 2009 Q4 2010 Q1r 2010 Q2p
(Quarterly Average)
United States 13.0% 13.9% 16.0% 15.8% 16.3% 16.6% 16.9% 16.9%
Northeast 13.0% 13.4% 14.8% 14.6% 15.0% 15.0% 15.4% 15.5%
Midwest 15.4% 16.0% 17.8% 17.5% 18.1% 18.6% 18.7% 18.9%
South 12.6% 13.4% 15.4% 15.2% 15.7% 16.0% 16.4% 16.3%
West 11.8% 13.6% 16.5% 16.4% 16.9% 17.2% 17.3% 17.3%

Albuquerque, NM 10.9% 11.5% 13.5% 13.0% 13.7% 14.3% 14.1% 14.7%

Anaheim-Santa Ana, CA 8.7% 12.5% 16.9% 16.6% 17.2% 18.4% 18.2% 19.5%
Atlanta-Sandy Springs-Marietta, GA 14.9% 15.5% 17.5% 17.0% 18.2% 18.0% 18.5% 18.6%
Austin-Round Rock, TX 13.1% 15.9% 18.9% 19.0% 19.0% 19.2% 19.1% 18.3%
Baltimore, MD 16.4% 17.3% 18.8% 18.6% 19.5% 18.7% 20.3% 19.4%
Birmingham-Hoover, AL 11.4% 9.7% 10.6% 10.1% 10.5% 11.7% 12.3% 12.2%
Boston-Cambridge, MA 11.3% 11.3% 13.2% 13.2% 13.2% 13.3% 13.9% 13.8%
Buffalo-Niagara Falls, NY 12.9% 12.1% 12.6% 12.2% 12.8% 12.9% N/A 13.5%
Charleston-North Charleston, SC 11.2% 13.8% 16.0% 16.4% 16.3% 15.6% 15.6% 14.5%
Charlotte-Gastonia-Concord, NC-SC 11.6% 11.5% 13.8% 13.3% 14.2% 14.9% 14.8% 14.6%
Chattanooga, TN-GA 10.8% 13.4% 15.3% 14.5% 16.0% 16.6% 18.4% 17.9%
Chicago-Naperville-Joliet, IL 15.6% 15.3% 17.0% 16.8% 17.4% 17.6% 17.7% 17.6%
Cincinnati-Middletown, OH-KY-IN 18.6% 18.9% 19.5% 19.4% 19.3% 20.2% 21.0% 21.3%
Cleveland-Elyria-Mentor, OH 16.7% 17.2% 17.7% 17.4% 17.7% 18.4% 18.6% 18.5%
Colorado Springs, CO 15.1% 16.9% 18.9% 18.6% 18.9% 19.5% 17.8% 17.4%
Columbia, SC 14.5% 14.1% 14.5% 14.0% 14.4% 15.8% 16.3% 16.7%
Columbus, OH 14.7% 14.6% 16.1% 15.6% 16.3% 17.5% 18.0% 18.2%
Dallas-Fort Worth, TX 16.0% 16.9% 19.3% 19.2% 19.7% 19.7% 20.4% 20.2%
Dayton, OH 20.2% 21.0% 25.5% 24.4% 26.8% 27.7% 28.1% 27.2%
Denver-Aurora, CO 15.0% 14.9% 18.1% 17.9% 18.6% 19.1% 19.0% 18.5%
Detroit-Warren-Livonia, MI 20.2% 21.9% 24.1% 23.9% 24.2% 24.4% 24.9% 24.9%
Fairfield, CT 13.8% 15.3% 19.1% 18.5% 20.1% 19.1% 20.4% 21.5%
Ft. Lauderdale, FL 9.4% 12.5% 16.6% 15.9% 17.3% 17.9% 18.2% 17.8%
Greensboro-Winston-Salem, NC 17.8% 18.5% 18.4% 18.5% 18.2% 18.5% 18.5% 18.9%
Greenville, SC 18.6% 17.3% 18.2% 17.7% 18.2% 19.3% 18.7% 19.2%
Hartford, CT 15.6% 16.9% 19.3% 18.9% 19.3% 20.6% 21.0% 21.4%
Honolulu, HI 6.3% 6.3% 7.3% 6.8% 7.4% 7.1% 6.9% 7.2%
Houston-Baytown-Sugar Land, TX 11.9% 12.0% 14.1% 13.9% 14.5% 14.9% 15.1% 15.1%
Indianapolis, IN 18.1% 18.2% 19.9% 19.5% 20.3% 20.7% 20.7% 21.8%
Jacksonville, FL 14.3% 15.9% 19.0% 18.9% 19.7% 19.6% 19.9% 19.7%
Kansas City, MO-KS 16.6% 16.7% 19.4% 19.0% 19.9% 20.3% 20.6% 20.7%
Knoxville, TN 15.1% 12.9% 15.5% 15.4% 16.3% 16.7% 16.7% 16.8%
Las Vegas-Paradise, NV 11.9% 16.6% 21.4% 20.9% 22.3% 23.0% 23.4% 23.7%
Lexington-Fayette, KY 12.7% 16.1% 16.5% 16.3% 15.9% 16.1% 16.3% 16.8%
Little Rock-N. Little Rock, AR 9.3% 9.6% 11.1% 10.8% 11.4% 11.9% 12.2% 12.3%
Los Angeles-Long Beach-Glendale, CA 8.7% 9.7% 12.2% 12.1% 12.7% 12.8% 13.3% 13.5%
Louisville, KY-IN 13.4% 12.8% 13.8% 13.8% 14.2% 13.9% 14.7% 14.7%
Madison, WI 7.2% 8.3% 8.7% 8.8% 8.7% 8.6% 8.6% 9.7%
Memphis, TN-MS-AR 16.1% 15.7% 18.2% 18.2% 18.3% 18.7% 19.3% 18.9%
Miami-Dade, FL 8.2% 10.4% 13.8% 13.8% 14.3% 14.6% 15.2% 15.5%
Milwaukee-Waukesha-West Allis, WI 13.0% 14.3% 16.3% 15.9% 16.7% 16.9% 17.0% 16.9%
Minneapolis-St. Paul, MN-WI 16.1% 17.5% 19.5% 19.3% 19.8% 20.2% 20.4% 20.4%
Nashville-Davidson-Murfreesboro, TN 10.3% 10.8% 14.0% 14.4% 14.1% 14.6% 15.9% 14.7%

cassidyturley.com | 9
Office Vacancy Rates
2007 2008 2009 2009 Q2 2009 Q3 2009 Q4 2010 Q1r 2010 Q2p
(Quarterly Average)
New Haven-Milford, CT 14.5% 14.2% 16.3% 15.7% 17.0% 17.1% 16.8% 16.9%
New Orleans-Metairie-Kenner, LA 5.1% 7.2% 8.5% 8.5% 8.5% 8.2% 8.5% 9.1%
New York, NY 7.1% 9.0% 13.0% 13.1% 13.4% 13.5% 13.5% 12.8%
Long Island, NY 12.4% 14.2% 16.4% 16.1% 17.0% 16.5% 16.6% 16.8%
Northern New Jersey 12.2% 12.9% 13.1% 13.1% 13.5% 13.1% 13.2% 13.2%
Central New Jersey 14.2% 15.6% 16.6% 16.7% 16.8% 16.6% 16.4% 16.5%
Oakland-East Bay, CA 15.3% 15.2% 16.7% 16.8% 17.0% 17.0% 18.0% 18.0%
Oklahoma City, OK 15.0% 14.8% 15.7% 15.4% 15.4% 16.3% 16.6% 17.0%
Omaha, NE-IA 13.3% 12.7% 14.8% 14.8% 15.5% 15.7% 15.7% 15.6%
Orlando, FL 9.9% 11.5% 15.3% 14.8% 15.8% 16.2% 16.4% 16.9%
West Palm Beach-Boca Raton, FL 10.9% 14.1% 17.6% 17.1% 18.0% 18.7% 18.9% 19.0%
Philadelphia-Camden, PA-NJ 11.3% 11.8% 12.9% 12.9% 13.1% 13.5% 13.9% 14.0%
Phoenix-Mesa-Scottsdale, AZ 14.8% 20.9% 25.8% 25.7% 26.3% 26.6% 27.3% 27.6%
Pittsburgh, PA 16.9% 15.4% 15.4% 15.5% 15.5% 15.2% 15.3% 15.7%
Portland, ME 9.3% 8.0% 8.1% 7.7% 8.7% 8.2% 9.2% 9.0%
Portland-Beaverton, OR-WA 11.2% 11.0% 13.3% 13.3% 13.8% 13.9% 14.4% 14.5%
Raleigh-Durham, NC 16.8% 16.1% 18.1% 18.5% 18.7% 18.7% 19.2% 19.7%
Rochester, NY 16.3% 15.6% 15.8% 15.8% 15.6% 15.8% 15.9% 16.1%
Sacramento, CA 12.7% 14.2% 15.8% 16.1% 16.3% 16.1% 16.3% 16.5%
Saint Louis, MO-IL 12.1% 12.1% 12.7% 12.3% 12.8% 13.6% 13.5% 13.5%
Salt Lake City, UT 10.9% 11.8% 14.4% 14.3% 14.5% 15.7% 15.6% 14.5%
San Antonio, TX 13.3% 13.6% 16.6% 16.7% 16.8% 17.0% 17.5% 17.0%
San Diego-San Marcos, CA 14.6% 18.2% 21.1% 21.0% 21.6% 21.1% 20.4% 20.3%
San Francisco, CA 10.4% 11.8% 15.0% 15.0% 15.3% 15.6% 15.7% 16.0%
San Jose-Sunnyvale-Santa Clara, CA 10.3% 13.8% 18.6% 18.6% 18.7% 18.9% 19.1% 18.4%
San Mateo County, CA 13.0% 14.3% 18.2% 18.9% 18.7% 18.1% 18.3% 17.1%
Seattle-Tacoma-Bellevue, WA 8.7% 9.6% 14.2% 13.6% 15.3% 16.4% 17.2% 17.0%
Suburban MD 10.5% 12.5% 14.5% 14.0% 14.9% 15.2% 15.4% 15.2%
Suburban VA 10.4% 12.0% 14.0% 13.7% 14.3% 14.8% 14.7% 14.3%
Syracuse, NY 10.2% 11.9% 13.0% 12.8% 13.1% 13.2% 12.6% 13.0%
Tampa-St.Petersburg-Clearwater, FL 15.4% 14.1% 14.5% 14.4% 14.8% 14.6% 15.2% 15.1%
Tucson, AZ 9.5% 11.5% 13.5% 13.3% 13.5% 14.0% 14.1% 14.3%
Tulsa, OK 18.6% 17.8% 17.4% 17.3% 17.6% 17.6% 17.5% 17.1%
Ventura County, CA 8.8% 12.9% 17.3% 17.1% 18.1% 17.4% 17.6% 17.6%
Washington, DC 7.2% 7.8% 10.0% 9.6% 10.3% 11.7% 11.5% 11.7%
Wichita, KS 14.9% 15.9% 17.5% 17.3% 18.0% 17.8% 17.4% 18.4%
Westchester, NY 16.4% 16.4% 16.4% 16.4% 16.4% 16.1% 17.5% 18.3%

Methodology explained on page 15

p = preliminary
r = revisions
* Vacancy = Direct + Sublet

10 | Cassidy Turley
Asking Rents
2007 2008 2009 2009 Q2 2009 Q3 2009 Q4 2010 Q1r 2010 Q2p
(Quarterly Average)
United States $22.05 $22.69 $21.97 $22.08 $21.87 $21.63 $21.73 $21.56
Northeast $24.72 $25.32 $24.14 $24.31 $24.01 $23.60 $23.48 $23.31
Midwest $18.10 $18.53 $18.57 $18.55 $18.58 $18.55 $18.82 $18.54
South $20.63 $21.12 $20.86 $20.91 $20.77 $20.77 $20.81 $20.81
West $24.98 $26.00 $24.45 $24.72 $24.28 $23.70 $23.59 $23.52

Albuquerque, NM $15.85 $16.44 $16.42 $16.40 $16.37 $16.58 $16.14 $16.27

Anaheim-Santa Ana, CA $30.77 $29.59 $26.32 $26.68 $26.16 $25.16 $24.83 $23.98
Atlanta-Sandy Springs-Marietta, GA $20.40 $20.90 $20.32 $20.34 $20.06 $20.10 $20.10 $20.03
Austin-Round Rock, TX $24.61 $25.83 $25.24 $25.27 $25.00 $25.19 $25.18 $24.87
Baltimore, MD $23.57 $23.36 $22.97 $23.37 $22.87 $22.58 $22.38 $22.86
Birmingham-Hoover, AL $17.81 $17.86 $17.93 $18.04 $17.88 $17.70 $17.75 $17.72
Boston-Cambridge, MA $30.62 $31.84 $30.08 $30.84 $30.26 $28.06 $27.76 $28.27
Buffalo-Niagara Falls, NY $15.55 $15.60 $15.79 $15.70 $15.71 $16.08 $16.22 $16.33
Charleston-North Charleston, SC $19.82 $19.52 $19.10 $19.12 $19.21 $18.79 $19.34 $19.25
Charlotte-Gastonia-Concord, NC-SC $19.82 $20.38 $20.41 $20.73 $20.29 $20.15 $20.31 $20.05
Chattanooga, TN-GA $14.96 $14.71 $14.73 $15.09 $14.61 $14.21 $14.19 $14.26
Chicago-Naperville-Joliet, IL $25.13 $25.84 $25.18 $25.38 $24.74 $24.82 $24.84 $24.70
Cincinnati-Middletown, OH-KY-IN $17.25 $17.57 $18.00 $18.03 $18.00 $17.89 $17.80 $17.82
Cleveland-Elyria-Mentor, OH $17.46 $17.65 $17.80 $17.74 $17.91 $18.05 $18.03 $18.19
Colorado Springs, CO $16.82 $16.95 $16.47 $17.00 $16.63 $15.17 $15.28 $15.35
Columbia, SC $15.16 $15.42 $15.69 $15.51 $15.85 $16.07 $16.05 $15.89
Columbus, OH $18.21 $18.79 $18.70 $18.80 $18.70 $18.51 $18.48 $17.54
Dallas-Fort Worth, TX $19.43 $20.01 $19.42 $19.41 $19.27 $19.26 $19.20 $18.94
Dayton, OH $18.43 $18.57 $18.57 $18.52 $18.64 $18.55 $18.67 $17.00
Denver-Aurora, CO $20.78 $21.72 $20.86 $20.98 $20.68 $20.35 $20.31 $20.28
Detroit-Warren-Livonia, MI $19.84 $19.48 $18.92 $18.92 $18.84 $18.77 $18.71 $18.72
Fairfield, CT $31.61 $32.17 $31.58 $31.82 $31.49 $30.81 $29.95 $29.18
Ft. Lauderdale, FL $25.68 $26.33 $25.33 $25.45 $25.32 $24.95 $25.24 $24.98
Greensboro-Winston-Salem, NC $15.36 $15.31 $15.39 $15.44 $15.46 $15.39 $15.24 $15.24
Greenville, SC $15.57 $15.55 $15.97 $15.79 $15.91 $16.39 $16.66 $16.18
Hartford, CT $19.93 $19.86 $19.49 $19.57 $19.27 $19.19 $19.16 $19.05
Honolulu, HI $19.98 $21.08 $23.57 $23.57 $24.54 $24.84 $25.53 $26.58
Houston-Baytown-Sugar Land, TX $21.62 $23.44 $23.32 $23.37 $23.14 $23.30 $23.64 $23.55
Indianapolis, IN $18.71 $20.49 $20.92 $20.75 $21.16 $21.19 $21.46 $21.20
Jacksonville, FL $18.05 $18.21 $18.28 $18.15 $17.91 $18.84 $18.04 $17.89
Kansas City, MO-KS $18.71 $19.16 $18.79 $18.94 $18.78 $18.57 $18.55 $18.46
Knoxville, TN $14.91 $15.60 $15.73 $15.73 $15.83 $16.10 $16.11 $15.94
Las Vegas-Paradise, NV $25.04 $25.19 $24.30 $24.67 $24.38 $23.14 $22.97 $22.77
Lexington-Fayette, KY $16.36 $16.40 $16.37 $16.32 $16.36 $16.52 $16.94 $16.82
Little Rock-N. Little Rock, AR $14.92 $14.76 $14.59 $14.26 $14.36 $14.83 $15.03 $15.05
Los Angeles-Long Beach-Glendale, CA $31.21 $32.92 $31.11 $31.43 $30.76 $30.10 $29.80 $29.51
Louisville, KY-IN $14.91 $16.06 $15.84 $15.95 $15.86 $16.08 $16.16 $16.93
Madison, WI $15.61 $15.85 $16.15 $16.21 $16.12 $16.16 $16.56 $16.61
Memphis, TN-MS-AR $17.14 $17.63 $17.54 $17.47 $17.47 $17.52 $19.11 $18.96
Miami-Dade, FL $28.94 $30.82 $29.56 $29.57 $29.41 $29.21 $29.09 $28.78
Milwaukee-Waukesha-West Allis, WI $15.17 $15.33 $15.98 $15.88 $16.04 $16.18 $16.25 $16.30
Minneapolis-St. Paul, MN-WI $22.06 $23.07 $22.77 $22.73 $22.73 $22.70 $25.35 $24.65
Nashville-Davidson-Murfreesboro, TN $18.66 $19.61 $19.79 $20.24 $19.78 $19.70 $18.05 $19.92

cassidyturley.com | 11
Asking Rents
2007 2008 2009 2009 Q2 2009 Q3 2009 Q4 2010 Q1r 2010 Q2p
(Quarterly Average)
New Haven-Milford, CT $20.11 $20.34 $20.50 $20.63 $20.48 $20.75 $20.70 $20.43
New Orleans-Metairie-Kenner, LA $15.98 $15.95 $15.22 $15.13 $15.17 $15.38 $15.79 $15.51
New York, NY $61.15 $64.47 $52.68 $52.78 $51.42 $50.96 $50.41 $50.19
Long Island, NY $26.95 $27.17 $26.44 $26.51 $26.16 $26.37 $26.15 $26.41
Northern New Jersey $27.17 $27.29 $26.45 $26.66 $26.33 $25.80 $25.53 $25.36
Central New Jersey $25.03 $25.07 $23.95 $24.08 $23.92 $23.62 $23.68 $23.48
Oakland-East Bay, CA $25.18 $25.75 $24.99 $25.32 $25.28 $23.93 $24.60 $24.58
Oklahoma City, OK $14.33 $14.02 $13.96 $13.97 $13.95 $13.96 $13.84 $13.69
Omaha, NE-IA $15.71 $16.13 $16.74 $16.40 $17.20 $16.99 $16.91 $16.92
Orlando, FL $21.47 $21.99 $21.31 $21.53 $21.12 $20.76 $20.33 $20.23
West Palm Beach-Boca Raton, FL $28.45 $29.00 $28.28 $28.54 $28.05 $27.55 $28.05 $27.89
Philadelphia-Camden, PA-NJ $22.86 $23.49 $23.44 $23.57 $23.35 $23.23 $23.23 $23.05
Phoenix-Mesa-Scottsdale, AZ $26.06 $26.07 $23.80 $23.88 $23.35 $23.00 $23.16 $23.03
Pittsburgh, PA $18.92 $19.24 $19.34 $19.29 $19.43 $19.29 $19.53 $19.49
Portland, ME $13.69 $14.34 $14.53 $14.39 $14.74 $14.72 $14.80 $14.49
Portland-Beaverton, OR-WA $20.47 $21.09 $20.84 $20.91 $20.96 $20.65 $20.55 $20.58
Raleigh-Durham, NC $18.90 $19.46 $19.05 $19.00 $19.00 $18.85 $18.70 $18.70
Rochester, NY $14.56 $15.04 $14.81 $14.91 $14.84 $13.77 $14.02 $14.12
Sacramento, CA $23.40 $23.88 $22.80 $22.92 $22.68 $22.68 $22.32 $22.08
Saint Louis, MO-IL $18.70 $18.49 $18.62 $18.66 $18.52 $18.50 $18.77 $18.89
Salt Lake City, UT $17.49 $18.15 $18.08 $18.03 $18.11 $18.19 $18.00 $17.82
San Antonio, TX $18.21 $18.97 $18.98 $18.93 $18.81 $18.76 $18.99 $18.98
San Diego-San Marcos, CA $32.52 $32.85 $30.09 $30.00 $29.64 $28.92 $28.08 $27.96
San Francisco, CA $39.11 $41.43 $34.66 $36.77 $33.01 $31.07 $30.72 $30.82
San Jose-Sunnyvale-Santa Clara, CA $31.56 $35.52 $33.57 $34.20 $32.88 $31.80 $31.80 $31.20
San Mateo County, CA $36.78 $41.22 $33.39 $33.48 $32.76 $32.28 $31.20 $31.32
Seattle-Tacoma-Bellevue, WA $27.97 $30.27 $28.54 $28.82 $28.15 $27.26 $27.40 $27.27
Suburban MD $26.82 $27.15 $27.46 $27.49 $27.31 $27.18 $26.66 $26.52
Suburban VA $30.89 $31.24 $29.74 $29.74 $29.68 $29.18 $29.30 $29.64
Syracuse, NY $14.55 $14.74 $14.58 $15.02 $14.07 $14.38 $14.16 $14.16
Tampa-St.Petersburg-Clearwater, FL $21.03 $21.48 $21.14 $21.32 $21.01 $20.84 $20.67 $20.61
Tucson, AZ $20.57 $21.11 $20.92 $21.05 $21.08 $20.32 $20.28 $20.18
Tulsa, OK $14.09 $14.49 $14.63 $14.63 $14.67 $14.56 N/A $15.63
Ventura County, CA $25.09 $26.23 $24.69 $24.85 $24.51 $24.08 $24.31 $24.22
Washington, DC $45.48 $47.60 $47.54 $47.40 $47.12 $47.83 $48.22 $48.39
Wichita, KS $11.83 $12.11 $12.11 $11.94 $12.04 $12.26 $12.27 $12.22
Westchester, NY $28.16 $29.18 $28.36 $28.86 $28.70 $27.03 $26.83 $25.71

Methodology explained on page 15

p = preliminary

12 | Cassidy Turley
Inventory
Inventory Vacant Stock Inventory Change YTD U/C (2010 Q2)
National Total 4,514,566,000 742,531,000 22,698,000 32,827,000
Albuquerque, NM 13,899,000 2,043,000 515,000 56,000
Anaheim-Santa Ana, CA 82,291,000 16,056,000 0 100,000
Atlanta-Sandy Springs-Marietta, GA 141,136,000 26,227,000 0 190,000
Austin-Round Rock, TX 40,221,000 7,376,000 30,000 91,000
Baltimore, MD 70,347,000 13,647,000 413,000 1,372,000
Birmingham-Hoover, AL 18,270,000 2,237,000 0 22,000
Boston-Cambridge, MA 124,157,000 17,097,000 717,000 1,378,000
Buffalo-Niagara Falls, NY 20,451,000 2,761,000 0 40,000
Charleston-North Charleston, SC 7,518,000 1,092,000 0 20,000
Charlotte-Gastonia-Concord, NC-SC 43,003,000 6,278,000 2,105,000 153,000
Chattanooga, TN-GA 4,790,000 859,000 54,000 0
Chicago-Naperville-Joliet, IL 243,626,000 42,923,000 608,000 575,000
Cincinnati-Middletown, OH-KY-IN 32,415,000 6,904,000 0 1,178,000

Cleveland-Elyria-Mentor, OH 34,973,000 6,469,000 44,000 63,000

Colorado Springs, CO 14,892,000 2,590,000 0 0

Columbia, SC 10,691,000 1,789,000 0 0
Columbus, OH 26,514,000 4,812,000 100,000 522,000
Dallas-Fort Worth, TX 154,524,000 31,226,000 1,549,000 1,329,000
Dayton, OH 13,399,000 3,645,000 0 180,000
Denver-Aurora, CO 88,699,000 16,390,000 1,031,000 661,000
Detroit-Warren-Livonia, MI 75,050,000 18,712,000 84,000 407,000
Fairfield, CT 58,147,000 12,502,000 500,000 475,000
Ft. Lauderdale, FL 27,021,000 4,819,000 0 0
Greensboro-Winston-Salem, NC 17,826,000 3,371,000 95,000 48,000
Greenville, SC 8,766,000 1,680,000 86,000 0
Hartford, CT 24,522,000 5,254,000 86,000 22,000
Honolulu, HI 26,183,000 1,892,000 385,000 0
Houston-Baytown-Sugar Land, TX 161,302,000 24,406,000 338,000 2,271,000
Indianapolis, IN 31,963,000 6,968,000 87,000 140,000
Jacksonville, FL 24,800,000 4,896,000 0 89,000
Kansas City, MO-KS 46,936,000 9,716,000 35,000 171,000
Knoxville, TN 6,501,000 1,092,000 51,000 89,000
Las Vegas-Paradise, NV 25,628,000 6,086,000 0 611,000
Lexington-Fayette, KY 4,718,000 795,000 0 0
Little Rock-N. Little Rock, AR 10,002,000 1,234,000 0 49,000
Los Angeles-Long Beach-Glendale, CA 195,352,000 26,289,000 65,000 27,000
Louisville, KY-IN 20,145,000 2,961,000 0 0
Madison, WI 22,062,000 2,142,000 0 0
Memphis, TN-MS-AR 19,329,000 3,658,000 50,000 0
Miami-Dade, FL 41,932,000 6,479,000 1,495,000 1,070,000
Milwaukee-Waukesha-West Allis, WI 31,061,000 5,249,000 0 130,000
Minneapolis-St. Paul, MN-WI 70,843,000 14,452,000 33,000 0
Nashville-Davidson-Murfreesboro, TN 33,922,000 4,987,000 369,000 42,000
New Haven-Milford, CT 11,707,000 1,973,000 146,000 0
New Orleans-Metairie-Kenner, LA 35,503,000 3,228,000 32,000 110,000
New York, NY 449,068,000 57,481,000 3,244,000 5,328,000
Long Island, NY 70,228,000 11,798,000 0 0
Northern New Jersey 146,410,000 19,326,000 137,000 20,000
Central New Jersey 103,895,000 17,143,000 68,000 0

cassidyturley.com | 13
Inventory
Inventory Vacant Stock Inventory Change YTD U/C (2010 Q2)
Oakland-East Bay, CA 67,407,000 12,133,000 0 0
Oklahoma City, OK 17,282,000 2,942,000 41,000 1,996,000
Omaha, NE-IA 17,596,000 2,748,000 224,000 85,000
Orlando, FL 32,546,000 5,494,000 376,000 195,000
West Palm Beach-Boca Raton, FL 23,414,000 4,458,000 132,000 479,000
Philadelphia-Camden, PA-NJ 111,517,000 15,662,000 214,000 663,000
Phoenix-Mesa-Scottsdale, AZ 67,617,000 18,662,000 924,000 274,000
Pittsburgh, PA 49,138,000 7,694,000 102,000 698,000
Portland, ME 18,157,000 1,633,000 0 19,000
Portland-Beaverton, OR-WA 41,025,000 5,948,000 453,000 315,000
Raleigh-Durham, NC 46,087,000 9,056,000 0 77,000
Rochester, NY 15,103,000 2,436,000 229,000 0
Sacramento, CA 82,588,000 13,627,000 181,000 0
Saint Louis, MO-IL 50,701,000 6,845,000 -34,000 770,000
Salt Lake City, UT 30,020,000 4,346,000 262,000 555,000
San Antonio, TX 27,941,000 4,748,000 266,000 482,000
San Diego-San Marcos, CA 72,244,000 14,665,000 32,000 273,000
San Francisco, CA 84,014,000 13,442,000 0 187,000
San Jose-Sunnyvale-Santa Clara, CA 72,432,000 13,298,000 562,000 0
San Mateo County, CA 31,661,000 5,414,000 0 0
Seattle-Tacoma-Bellevue, WA 81,718,000 13,932,000 1,368,000 2,644,000
Suburban MD 74,986,000 11,375,000 0 362,000
Suburban VA 152,373,000 21,837,000 270,000 806,000
Syracuse, NY 12,594,000 1,641,000 60,000 0
Tampa-St.Petersburg-Clearwater, FL 41,327,000 6,221,000 127,000 88,000
Tucson, AZ 5,843,000 836,000 40,000 259,000
Tulsa, OK 20,103,000 3,446,000 0 95,000
Ventura County, CA 8,243,000 1,452,000 0 145,000
Washington, DC 121,164,000 14,176,000 2,317,000 2,331,000
Wichita, KS 8,611,000 1,581,000 0 0
Westchester, NY 42476000 7,773,000 0 0

Methodology explained on page 15

p = preliminary
** © Reis Services, LLC 2009 4Q
Reprinted with the permission of Reis Services, LLC
All rights reserved.

14 | Cassidy Turley
Methodology
Disclaimer
This report and other research materials may
be found on our website at www.cassidyturley.
com. This is a research document of Cassidy
Turley in Washington, DC. Questions related
to information herein should be directed to
the Research Department at 202-463-2100.
Information contained herein has been
obtained from sources deemed reliable and
no representation is made as to the accuracy
thereof. Cassidy Turley is one of the largest
commercial real estate service providers
in the U.S., with 420 million square feet of
managed space in 58 locations and $13
billion in completed transactions for 2009.
Methodology
Cassidy Turley’s quarterly estimates are derived from a variety of data sources, including its
own proprietary sample of market activity, historical and current inventory data from Reis
LLC, Bureau of Labor Statistics Employment data, and other third party data sources. The
market statistics are calculated from a base building inventory made up of office properties
deemed to be competitive in the local office markets. Generally, owner-occupied and
federally-owned buildings are not included. Single-tenant buildings and privately-owned
buildings in which the federal government leases space are included. Older buildings unfit
for occupancy or ones that require substantial renovation before tenancy are generally not
included in the competitive inventory. Vacant space is defined as space that is available
immediately or three months (90 days) after the end of the quarter. Sublet space still
occupied by the tenant is not counted as available space.
The figures provided for the current quarter are preliminary, and all information contained in
the report is subject to correction of errors and revisions based on additional data received.
Explanation of Terms
Total Inventory: The total amount of office space (in buildings greater than 10,000 square
feet) that can be rented by a third party.
Total Space Available: The sums of new, relet, and sublet space that is unoccupied and
being actively marketed.
Vacancy Rate: The amount of unoccupied space (new, relet, and sublet) expressed as a
percentage of total inventory. (Total Unoccupied Space divided by Total Inventory.)
Absorption: The net change in occupied space between two points in time. (Total occupied
space in the previous quarter minus total occupied space in the present quarter, quoted on
a net, not gross, basis.)
Effective Rents: Gross average asking rents - average concessions.
cassidyturley.com | 15
Key
Statistics
• 58 offices
• 72 international offices*
• 2,800 associates
• 900 brokers
• 2009 transactions
– Gross transaction volume
$13 billion
– Gross capital markets
volume $4.1 billion
• 420 million sf property
management portfolio
• 25,000+ Corporate Services
locations and 152 million sf
*Through GVA Grimley Partnership
We are Cassidy Turley
One of the nation’s largest commercial real estate services firms, Cassidy Turley enjoys a
history of 100 years of successful client relationships. Our team of professionals is dedicated
to consistently delivering integrated, tailored solutions that produce superior results and
champion your business goals. We become your partner and advocate, and are passionate
about achieving long-term success on your behalf.
Real Market Knowledge
• In every market where we do business, we have in-depth, local market knowledge that
enables us to advocate effectively for our clients
• Many of our associates have honed their skills in their respective markets for years, and
even decades.
Real Connections
• Our professionals have deep ties to our communities and our industry, which gives
Cassidy Turley a competitive advantage when it comes to really understanding what the
market is doing—and more importantly where it is heading.
• In order to better serve our clients’ needs in EMEA and Asia Pacific, Cassidy Turley is
proud to partner with GVA Grimley, a respected market leader in its geographies.
Real Passion
• In a partnership with Cassidy Turley, you gain a champion who will be as focused on
advocating your goals as you are.
• We believe in long-term, person-to-person relationships and an unwavering
commitment to our clients’ success.
Real Results
• We believe that hands-on problem solving is fundamental, and we are committed to
delivering integrated, tailored solutions that provide maximum, measurable outcomes.
• You can depend on us for world-class expertise, service and execution, wherever you do
business.
cassidyturley.com