Commercial RE Market Outlook

Presented by: Bob Bach SVP, Chief Economist

Gross Domestic Product, Historic & Forecast

Annualized Percent Change

Source: BEA, Goldman Sachs, PNC, Wells Fargo, Grubb & Ellis

2

10 Year Treasury Yield, Historic & Forecast

End of Quarter

Source: Federal Reserve, Goldman Sachs, PNC, Wells Fargo, Grubb & Ellis

3

Job Losses Related to Post-War Recessions

1990-91 2001 1981-82 2008-09 Source: BLS, Grubb & Ellis

4

Quarterly Vacancy by Property Type

Source: CoStar, Reis, Grubb & Ellis

5

Office Vacancy & Absorption

Quarterly up to 2010-Q2

Source: Grubb & Ellis

6

Office Vacancy Rates

2010-Q2

Source: Grubb & Ellis

7

Industrial Vacancy Rates

2010-Q1

Source: Grubb & Ellis

8

Average Office Lease Size & Term

SF in thousands Months

Source: Grubb & Ellis

Commercial Real Estate Investment

Source: Real Capital Analytics, Grubb & Ellis

10

Prices Have Hit Bottom

Property Pricing

Source: MIT Center for Real Estate, RCA, Grubb & Ellis

11

Commercial RE Market Outlook

Presented by: Bob Bach SVP, Chief Economist