RERCsCCIM

InvestmentTrends
Fourth Quarter 2010 Report s Vol. 6, No. 4 QUARTERLY

Sponsored by:
 Foreword

November 2010

Dear Readers,

We heard from more than a few CCIM members who attended the CCIM 2010 conference in Orlando last month
that the investment climate for commercial real estate is more uncertain than what the majority of us have seen
in our lifetime. The troubling thing about this situation is that we do not see the economy or the investment envi-
ronment improving significantly for quite some time. As noted at the ReFocus event in Orlando, one thing we can
do, however, is to face the reality of a very sluggish economy with slow job growth, and to reset our expectations.
It is going to take time to work through the various challenges that we are facing, including repricing and further
deleveraging.

RERC’s research and analysis indicates that we are seeing some improvement in total volume and pricing on a
12-month trailing basis for all property types. The great majority of the increases in total volume and pricing oc-
curred in transactions greater than $5 million. However, for those transactions that totaled less than $5 million,
volume increased only slightly, and in fact, the size-weighted average price per square foot/unit declined for all
property types. The increases in top-tier property prices, juxtaposed with deteriorating pricing for properties at the
lower-tier levels, is in keeping with the mixed views we are seeing in returns versus risk and in value versus price
ratings, and as outlined in this issue of the RERC/CCIM Investment Trends Quarterly.

We would also like to take this opportunity to thank all of you who responded to RERC’s research surveys. The
comments and the raw data you share provide solid insight into the state of the commercial real estate market
and to the returns we can expect, and we appreciate your contributions.

Sincerely,

Kenneth P. Riggs, Jr., CCIM, CRE, MAI Frank N. Simpson, CCIM

President & CEO 2011 CCIM Institute President
Real Estate Research Corporation (RERC) President, The Simpson Company

Investment Trends Quarterly s Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute. 1
 Investment Environment
It is a relief to have the answers to some of the questions we
have been concerned about over the past few months. The
recession has been declared officially over, we know the
outcome of the mid-term elections, and we now know the
Federal Reserve will be purchasing $600 billion of additional
treasuries over the next 8 months to help the economy grow.
However, much uncertainty remains, and as concerns about
the economy continue, new questions arise. For example,
will the additional quantitative easing (QE2) implemented by
the Federal Reserve provide that extra spark needed to re-
charge the economy, and is inflation inevitable? Will our new
Congress have the commitment to address the deficit and
debt, and what will it mean for business? How is the banking
industry faring, and are lending standards loosening? When
will the housing market bottom out?
While much remains uncertain in the overall economy,
transaction trends for commercial real estate continue to
Economic Highlights
Economy Remains Sluggish
According to the National Bureau of Economic Research
(NBER), the recession officially ended in June 2009. U.S.
gross domestic product (GDP) growth has been positive
since that time, although economic activity has definitely
turned sluggish. The initial estimate of third quarter 2010
growth was 2.0 percent, according to the Commerce De-
partment, following a revised growth estimate of 1.7 per-
cent in second quarter. Fears of a double-dip recession may
eventually recede, but the slow growth is not enough to af-
fect hiring in a meaningful way.
While businesses, consumers, investors, and lenders are
focusing on deleveraging, there is great concern that our
political leaders are not. The national debt is $13.6 trillion,
and the deficit for fiscal year 2010 was $1.3 trillion, or 8.9
percent of GDP.
According to the World Economic Outlook report recently
issued by the International Monetary Fund (IMF), global
growth is expected to further slow in 2011, as the industri-
alized nations implement various austerity measures and
reduce their budgets due to the continuing sovereign debt
crisis. The report noted that among the member nations,
growth prospects in the U.S. were downgraded the most,
falling to 2.3 percent from 2.9 percent, and that “…growth
appears to be slowing as policy stimulus wanes.” Emerging
markets such as China and India are projected to be the
growth leaders, with China leading the pack with a growth
estimate of 9.6 percent in 2011 (although this, too, is down
from 10.5-percent growth in 2010).
Investment Trends Quarterly s Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute.
improve, at least for some property types and investment
arenas, as reported herein. The challenge for investors re-
mains—finding the right properties at the right price with the
best return potential.
High Unemployment Continues
The 14 months of unemployment at 9.5 percent or higher is
the longest period of unemployment at this high a rate since
the U.S. began keeping records in 1948, indicating that high
employment may very well indeed be a structural change
to our nation’s economy and workforce. Although we are
starting to see positive employment growth, it is not enough
to keep up with normal growth in population, let alone make
much of a dent in reducing the number of persons who lost
jobs during the past couple years. As a result, 14.8 million
workers remain unemployed, and the unemployment rate
remained at 9.6 percent in September 2010, according to
the Bureau of Labor Statistics (BLS). Most projections sug-
gest that the unemployment rate is likely to climb back up
to 10 percent over the next few months, and remain above
9 percent throughout 2011. In addition, U-6 unemployment
increased to 17.1 percent in September.
On a statewide basis, payrolls dropped in 34 states in Sep-
tember 2010, with the most jobs lost in California, followed
by New York, Massachusetts, and New Jersey. According to
the Labor Department, however, Nevada continued to have
the highest unemployment rate at 14.4 percent, followed by
Michigan at 13.0 percent, and California at 12.4 percent.
Business sector productivity increased 1.9 percent on an
annualized basis, with output increasing 3.0 percent and
hours working increasing 1.1 percent in third quarter 2010,
reported the BLS. In addition, according to the National As-
sociation for Business Economists’ (NABE) quarterly survey
results, business conditions improved during third quarter
2
compared to second quarter conditions. Many respondents
noted that their firms saw a rise in demand for goods and
services, as well as an increase in business profits, for the
fifth consecutive quarter. This offers one of the more hopeful
signs that hiring may improve in the coming months.

Consumers Still Wary

While retailers are hoping that the upcoming holiday season

will prompt consumers to loosen their purse strings, accord-
ing to recent survey results issued by First Command Fi-
nancial Services, more than half of the survey respondents
said they will reduce overall spending on gifts this year and
will not be traveling for the holidays. Further, over the next
6 months, 49 percent of consumers plan to avoid shopping
altogether or to shop only for those things that are “abso-
lutely needed,” according to results of a consumer survey
issued by Citi.

However, retail sales were positive throughout third quarter

2010, due primarily to back-to-school shopping. Accord-
ing to the U.S. Census Bureau, advance estimates of retail
and food services sales for September increased 0.6 per-
cent from August, and 5.7 percent from the same period
a year ago. Consumers continue to struggle, as inflation-
adjusted median household income declined 4.8-percent
between 2000 and 2009 (4.2 percent between 2007 and
2009 alone), according to the Census Bureau. This, on top
of the average 48-percent loss in home values ($6.5 tril-
lion nationwide since 2006) and increasing foreclosures, al-
lows one to understand why U.S. households continue to be
more discriminating about spending.
Foreclosures Pull Housing Market Down Further
Despite low interest rates, low prices, and ample inventory,
the overall outlook for home sales remains weak. By year
end 2010, there are expected to be fewer total home sales
than in 2009, reports the National Association of REAL-
TORS® (NAR).
Although a slow recovery in the housing market appears to
be underway, only modest improvement is expected and
sales activity will remain slow until stronger job growth oc-
curs. Existing-home sales have been increasing during third
quarter, rising 10.0 percent in September 2010 and bring-
ing the annualized existing home sales number up to 4.53
million units. Although new home sales are priced near a
historic low, sales increased by 6.6 percent in September, at
an annualized pace of 307,000 units. Pending home sales
also increased in September. The supply of homes reached
a record high of 12.5 months in July, but fell to 10.7 months
in September.
Almost one-fourth of U.S. home sales in second quarter
2010 were for properties in some stage of mortgage dis-
tress, according to Realty Trac. Although we have yet to see
what will become of the foreclosure delays due to the “robo-
signing” controversy, deficient titles, and resulting lawsuits,
the number of foreclosures is expected to number in the
millions, and home prices are likely to fall well into next year.
The concern is that if the foreclosure process is prolonged
for too long, home prices may drop further.
CCIM Members Lower Their Economic Outlook
CCIM members felt the national economy continued to de-
cline, and in third quarter 2010, they lowered their rating of
the national economy to 3.7 on a scale of 1 to 10, with 10 be-
ing high. Ratings for the regional economies declined from
the previous quarter too, however all the regional econo-
mies received higher ratings than the national economy,
indicating that respondents felt their regional economies
were stronger than the national economy overall. The East
regional economy was rated highest at 4.9, while the West
regional economy received the lowest rating of 3.8. With all
the economic ratings remaining below the mid-point of the
scale, it is clear that there is great uncertainty and a sense
of caution regarding the state of the economy.

Investment Trends Quarterly s Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute. 3
 Commercial Real Estate Highlights
Although the majority of the commercial real estate market
continues to struggle, it is important to remember that some
big deals, like the recently planned purchase of Boston’s
John Hancock Tower by Boston Properties, Inc. for $930
million, are occurring in the top tier of the market. Even in
secondary markets, there have been some remarkable
property sales, like KBS Realty Advisors’ planned purchase
of National City Tower in Louisville, Ky., for approximately
$115 million in cash (this building was reported to have sold
last in 2005 for approximately $95 million).
However, conditions in the market for most investors, remain
“subdued,” stated the Federal Reserve in their Oct. 20, 2010
issue of the Beige Book. Rental rates have been declining,
except in the apartment sector, although there have been
some reports of slight increases in leasing activity among
all the major property types. Property sales have been low,
with the exception of distressed property sales, which re-
main strong in some districts. With demand for commercial
loans remaining weak and loan standards remaining tight,
little lending activity occurred during third quarter.
Community Banks Continue to Struggle
New banking regulations have required financial institutions
to increase future protections against unexpected losses
stemming from a range of banking risks, from residential
mortgages to commercial loans to credit cards. To be es-
tablished gradually over the next several years in the U.S.,
the Basel III regulations will require banks to hold a higher
level of capital to protect against future losses. Instead of the
4 percent currently required, most banks will be increasing
their holdings to about 7 percent.
This is not expected to be too difficult for large banks, which
largely have recovered from the credit difficulties they ex-
perienced during the past few years. However, small banks
continue to struggle with bad loans. According to the Federal
Deposit Insurance Corporation (FDIC), the amount of loan
balances that are 90-days past due declined by 5.3 percent
in large banks during second quarter 2010, but increased at
community banks during the same period. The FDIC also
reports that the number of “problem” banks increased to 829
during second quarter 2010, and that from January through
October of this year, 139 banks have failed.
CCIM’s Investment Trends Quarterly Survey Results
Commercial real estate retained its preeminent place among
the various investment alternatives, according to CCIM
members. The extreme volatility in the stock market over
Investment Trends Quarterly s Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute.
the past 2 years and the low returns offered with bonds or
cash,makes commercial real estate very attractive by com-
parison. As demonstrated in Exhibit 1, RERC/CCIM Invest-
ment Trends Quarterly survey respondents rated commer-
cial real estate at 5.6 on a scale of 1 to 10, with 10 being
high, compared to the 4.8 rating for cash, and the 4.4 and
4.2 respective ratings for stocks and bonds. Despite the
relatively high rating for commercial real estate, the rating
declined from the previous quarter.
RERC’s third quarter 2010 institutional investment survey
respondents recommended that investors continue to hold
commercial real estate properties. However at 6.6 on a
scale of 1 to 10, with 10 being high, the hold recommenda-
tion in third quarter was slightly lower than the 6.8 rating in
the second quarter. In addition, survey respondents posted
higher buy and sell recommendations in third quarter over
the previous quarter’s recommendations. Exhibit 2 shows
how the gap between buyers, sellers, and those holding
commercial real estate continues to narrow.
On a property-type basis, the apartment sector continued
to receive the highest investment conditions rating during
third quarter 2010. At 6.0 on a scale of 1 to 10, with 10 being
high, the apartment sector’s rating easily outscored the rat-
ing for the industrial sector, which received a rating of 4.5. As
shown in Exhibit 3, the retail sector and hotel sector invest-
ment conditions ratings declined to 3.9, while the rating for
the office sector was lowest, falling to 3.8. With the excep-
tion of the apartment sector, all of the property sectors con-
tinued to receive a rating below 5.0, indicating their general
weakness. In addition, the apartment and industrial sectors
were the only property sectors whose ratings increased dur-
ing third quarter.
According to CCIM members, the return versus risk rating
for commercial real estate overall fell to 4.9 on a scale of
1 to 10, with 10 being high, during third quarter 2010. This
Exhibit 1. CCIM Respondents Rate Investments
3Q 2010 2Q 2010
Commercial Real Estate 5.6 6.1
Stocks 4.4 4.5
Bonds 4.2 4.5
Cash 4.8 5.7
Ratings are based on a scale of 1 to 10, where 1 is poor and 10 is excellent.
Source: RERC/CCIM Investment Trends Quarterly Survey, 3Q 2010.
4
decline negates the improvement to 5.4 from the previous
quarter, as reflected in Exhibit 4, and indicates that respon- Exhibit 2. RERC Historical Buy, Sell, Hold Recommendations
dents are generally less confident in commercial real estate 10 10

returns over the risk of this investment.

8 8

In fact, the return versus risk ratings for all the property types
6
fell or remained flat during third quarter 2010, indicating that
6

Rating
CCIM members have less confidence in the return prospects 4 4
of these property types. At 6.2 on a scale of 1 to 10, with 10 Hold
being high, the return versus risk rating for the apartment 2
Sell
2
Buy
sector remained the highest. Next highest was the industrial
sector, with a return versus risk rating of 4.8. As demonstrat- 0 0

01

02

03

04

05

06

07

08

09

10
ed in Exhibit 4, the apartment and industrial sectors were the

20

20

20

20

20

20

20

20

20

20
3Q

3Q

3Q

3Q

3Q

3Q

3Q

3Q

3Q

only property types where this rating remained unchanged.
In general, the amount of risk involved in investing in these
property types (with the exception of the apartment sector)
significantly outweighs the return one can expect.
3Q
Ratings are based on a scale of 1 to 10, where 1 is poor and 10 is excellent.
Source: RERC Institutional Investment Survey, 3Q 2010.

Regarding the value versus price of commercial real estate, Exhibit 3. Real Estate Investment Conditions Ratings
ratings were mixed during third quarter 2010, indicating that 3Q 2Q 1Q 4Q 3Q
CCIM members felt that the value of commercial property 2010 2010 2010 2009 2009
is very uncertain and is barely equal to its price. As shown Office 3.8 4.0 3.8 3.8 3.8
in Exhibit 4, the value versus price rating of real estate fell
Industrial 4.5 4.4 4.2 4.1 4.3
slightly to 5.1 on a scale of 1 to 10, with 10 being high, during
third quarter 2010. Retail 3.9 4.2 3.7 3.8 3.8
Apartment 6.0 5.9 5.5 5.4 5.5
With respect to the value versus price rating of the specific
Hotel 3.9 4.2 3.8 3.8 3.6
property types, the apartment sector continued to receive
Ratings are based on a scale of 1 to 10, where 1 is poor and 10 is excellent.
the highest rating, increasing to 5.4 on a scale of 1 to 10, Source: RERC/CCIM Investment Trends Quarterly Survey, 3Q 2010.
with 10 being high, during third quarter 2010. In addition, the
value versus price rating for the retail sector increased to
4.8 from 4.5 in the previous quarter. The value versus price
ratings for the office and industrial sectors held their own
Exhibit 4. Historical Return/Risk and Value/Price Ratings
from the previous quarter, at 4.7 and 5.1, respectively, while 3Q 2010 2Q 2010 1Q 2010 4Q 2009 3Q 2009
the rating for the hotel sector fell to 4.5 during third quarter. Return vs. Risk
The ratings indicate that survey respondents believe that the Overall 4.9 5.4 5.1 4.8 5.0
office, retail, and hotel properties are generally of less value
than their price would indicate. Office 4.1 4.4 4.1 4.1 4.2
Industrial 4.8 4.8 4.7 4.7 4.9
RERC’s transaction analysis showed significantly greater Retail 4.2 4.7 4.1 3.9 4.0
total volume on a 12-month trailing basis during third quar-
Apartment 6.2 6.2 6.1 5.8 5.8
ter 2010. Hotel sector volume showed the largest increase
at nearly 50 percent, while at 15 percent, retail sector vol- Hotel 4.1 4.4 3.9 3.9 3.8
ume increased the least. Compared to previous quarters, Value vs. Price
there was a steady increase in volume of sales greater than Overall 5.1 5.2 5.5 4.7 4.8
$5 million for all of the property sectors during third quar-
ter. However, third quarter volume for transactions of less Office 4.7 4.7 5.0 4.3 4.4
than $5 million remains quite flat compared to the previous Industrial 5.1 5.1 5.0 4.7 5.0
quarter. Retail 4.8 4.5 4.9 4.2 4.4
Apartment 5.4 5.2 5.6 4.9 5.3
The size-weighted average price per square foot/unit for all
transactions held steady or increased for all property types Hotel 4.5 4.7 4.7 4.0 4.1
on a 12-month trailing basis during third quarter 2010. How- Ratings are based on a scale of 1 to 10, where 1 is poor and 10 is excellent.
ever, the size-weighted average price per square foot/unit Source: RERC/CCIM Investment Trends Quarterly Survey, 3Q 2010.

Investment Trends Quarterly s Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute. 5
for transactions less than $5 million decreased for
all property types except hotels. The weighted- Exhibit 5. What Do the Financial Markets Tell Us?
average capitalization rate for each of the property
Compounded Annual Rates of Return as of 9/30/2010
sectors declined.

Although we have seen significant improvement Market Indices YTD 1-Year 3-Year 5-Year 10-Year 15-Year
in the stock market during third quarter 2010, our Consumer Price Index1 0.38% 1.20% 1.55% 1.90% 2.32% 2.40%
memories are not so short that we have forgot-
2
ten how quickly stocks can fall. The volatility of 10-Year Treasury Bond 3.33% 3.24% 3.46% 3.97% 4.23% 4.81%
the stock market and the relatively low returns
Dow Jones Industrial Average 0.38% 8.51% -6.96% 2.09% 2.00% 7.52%
of the bond market make the real estate market
even more attractive to investors, especially with NASDAQ Composite3 4.38% 11.60% -4.29% 1.94% -4.29% 5.62%
the continued weakness in the economy. How-
3
ever, by the end of September 2010, the Dow NYSE Composite 1.34% 5.36% -10.15% -0.94% 0.38% 5.39%
Jones Industrial Average (DJIA) rose by nearly 8
percent to 10,788, which was the highest it had S&P 500 3.89% 10.16% -7.16% 0.64% -0.43% 6.45%
been since April, and the Standard & Poor’s (S&P)
NCREIF Index 8.12% 5.84% -4.61% 3.67% 7.25% 8.91%
500 increased to 1,080. As shown by the returns
reported by the National Association of Real Es- NAREIT Index (Equity REITS) 19.10% 30.28% -6.06% 1.88% 10.38% 10.31%
tate Investment Trusts (NAREIT) and the National
Council of Real Estate Investment Fiduciaries 1
Based on the published data from the Bureau of Labor Statistics (Seasonally Adjusted).
2
(NCREIF) in Exhibit 5, however, commercial real 3
Based on Average End of Day T-Bond Rates.
Based on Price Index, and does not include the dividend yield.
estate is generally outperforming the major stock
Sources: BLS, Federal Reserve Board, S&P, Dow Jones, NCREIF, NAREIT, compiled by RERC.
market indices as well.

Summary
As the economy continues to struggle and the investment
environment remains uncertain, the commercial real estate
market is increasingly divided. Some of the highest prices
ever are being paid for institutional properties in top-tier mar-
kets, while other markets are seeing little or no transaction
activity other than distressed property sales. Economic and
real estate related highlights from third quarter 2010 include:
• The fear of a double-dip recession continues. Slow
growth is expected to continue for the foreseeable future,
and the unemployment rate is likely to move little from
current levels.
• The housing market remains weak, and the halt in fore-
closures could hinder the recovery. Many believe that we
cannot see a solid recovery in the economy until the dif-
ficulties in the residential market are resolved.
• Interestingly, CCIM members lowered their performance
ratings for the economy during third quarter 2010. As
generally noted, the commercial real estate market will
recover after the economy, and although it is expected to
be a long time before a recovery becomes widely felt, we
are seeing early signs of it in the commercial real estate
market.

• The short-term interest rate will remain near zero “for an
extended period,” as the Federal Reserve buys more
bonds to stimulate the economy. Yields will decrease,
stock and commodity prices (along with inflation) are
likely to increase, and the dollar is expected to weaken.
• Expect investors to head back to the stock market, de-
spite the volatility, if returns continue to climb.
• With more capital available from some sources and with
increased demand for less volatile investments, com-
mercial real estate property prices have been rising.
• Various space market experts report that commercial
real estate vacancy will continue to decline next year, as
job growth gets underway, new household formations oc-
cur, and there is a lack of new supply.

Investment Trends Quarterly s Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute. 6
 Snapshot of Real Estate Market Performance – 3Q 2010

Going-In Cap Rates vs. Unemployment

12% 12%

10% 10%

8% 8%

6% 6%

4% 4%

Unemployment
2% 2%
Going-In Cap Rate
Recession
0% 0%
0
1
2
3
4
5
6
7
8
9
0
1
2
3
4
5
6
7
8
9
0
1
2
3
4
5
6
7
8
20 9
10
3Q 198
3Q 198
3Q 198
3Q 198
3Q 198
3Q 198
3Q 198
3Q 198
3Q 198
3Q 198
3Q 199
3Q 199
3Q 199
3Q 199
3Q 99
3Q 199
3Q 199
3Q 199
3Q 199
3Q 199
3Q 00
3Q 200
3Q 200
3Q 200
3Q 200
3Q 200
3Q 200
3Q 200
3Q 200
3Q 200
1

2
3Q

Sources: RERC, BLS, NBER, 3Q 2010.

Performance Indicator Recent Data Impact on Commercial Real Estate

According to Reis, Inc., vacancy for the office sector increased, while
Office: 17.6%
that for the retail sector remained unchanged during third quarter. In
Industrial: 14.0%
comparison, the apartment sector vacancy rate decreased. The in-
Vacancy Rates Retail: 10.9%
dustrial sector availability rate also fell during third quarter, according
Apartment: 7.1%
to CBRE-EA. Smith Travel Research reported that hotel occupancy in-
Hotel: 64.2% (occupancy)
creased during third quarter.

Office: 1.6% to 2.1%

Rental Rates RERC’s third quarter 2010 rental rate expectations were slightly higher
Industrial: 1.7% to 2.0%
for the office, retail, apartment, and hotel sectors when compared to
(RERC’s surveyed rent Retail: 1.6% to 1.8%
those for second quarter 2010. The rental rate expectation for the indus-
growth expectations) Apartment: 2.9%
trial sector fell slightly from the previous quarter.
Hotel: 2.1%

RERC Required Returns: NCREIF Realized Returns:

Office: 8.6% to 9.5%
Industrial: 9.0% to 9.7%
Real Estate Returns Retail: 9.1% to 9.3%
Apartment: 8.5%
Hotel: 10.8%
Office: 1.7% to 9.0%
Industrial: 0.5% to 6.9%
Retail: 4.8% to 8.8%
Apartment: 9.2%
Hotel: 1.6%
RERC’s required returns declined slightly for all property sectors during
third quarter 2010. In comparison, NCREIF’s realized returns continued
to improve during third quarter, as all property sectors showed positive
returns.

RERC Realized Cap Rates: NCREIF Implied Cap Rates:

Office: 6.8% Office: 6.6% to 7.2% RERC’s realized cap rates declined during third quarter for all property
Industrial: 8.2% Industrial: 7.3% to 7.6% sectors. NCREIF’s implied cap rates were higher in each property sector
Capitalization Rates Retail: 8.4% Retail: 7.0% to 7.7% during third quarter, with the exception of the industrial sector, where
Apartment: 6.2% Apartment: 5.9% rates remained unchanged compared to the previous quarter.
Hotel: 8.0% Hotel: 6.0%

Investment Trends Quarterly s Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute. 7
 National Market Analysis

National Transaction Breakdown

12-Month Trailing Averages (10/01/09 - 09/30/10)
Office Industrial Retail Apartment Hotel
< $2 Million
Volume (Mil) $1,256 $2,436 $2,492 $1,103 $71
Size Weighted Avg. ($ per sf/unit) $82 $46 $80 $43,993 $23,690
Price Weighted Avg. ($ per sf/unit) $118 $72 $123 $68,540 $33,993
Median ($ per sf/unit) $87 $55 $85 $50,000 $23,404
$2 - $5 Million
Volume (Mil) $1,617 $2,694 $2,938 $2,132 $325
Size Weighted Avg. ($ per sf/unit) $106 $52 $124 $53,505 $35,286
Price Weighted Avg. ($ per sf/unit) $177 $85 $228 $106,016 $46,964
Median ($ per sf/unit) $142 $72 $186 $83,382 $36,228
> $5 Million
Volume (Mil) $32,144 $9,086 $18,590 $20,798 $6,223
Size Weighted Avg. ($ per sf/unit) $208 $56 $160 $103,843 $131,348
Price Weighted Avg. ($ per sf/unit) $351 $136 $236 $181,417 $233,592
Median ($ per sf/unit) $173 $71 $160 $95,444 $111,631
All Transactions
Volume (Mil) $35,017 $14,215 $24,021 $24,033 $6,620
Size Weighted Avg. ($ per sf/unit) $189 $53 $141 $90,621 $111,062
Price Weighted Avg. ($ per sf/unit) $335 $115 $223 $169,548 $222,273
Median ($ per sf/unit) $115 $59 $111 $70,423 $62,024
Capitalization Rates (All Transactions)
Range (%) 4.1 - 12.9 4.2 - 12.2 4.2 - 12.7 4.2 - 11.1 6.8 - 11.9
Weighted Avg. (%) 6.8 8.2 8.4 6.2 8.0
Median (%) 7.9 8.8 7.8 6.6 8.0
Source: RERC.

Investment Trends Quarterly s Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute. 8
 National Market Analysis

National Transaction Breakdown

Current Quarter Rates (07/01/10 - 9/30/10)
Office Industrial Retail Apartment Hotel
< $2 Million
Volume (Mil) $307 $672 $720 $305 $20
Size Weighted Avg. ($ per sf/unit) $82 $42 $78 $38,266 $17,782
Price Weighted Avg. ($ per sf/unit) $113 $69 $121 $66,161 $26,745
Median ($ per sf/unit) $85 $53 $85 $46,750 $21,129
$2 - $5 Million
Volume (Mil) $438 $746 $936 $615 $89
Size Weighted Avg. ($ per sf/unit) $107 $48 $107 $48,729 $37,995
Price Weighted Avg. ($ per sf/unit) $177 $81 $212 $105,902 $59,473
Median ($ per sf/unit) $132 $70 $171 $81,635 $41,333
> $5 Million
Volume (Mil) $11,210 $3,390 $5,452 $7,919 $2,877
Size Weighted Avg. ($ per sf/unit) $220 $63 $168 $116,084 $165,190
Price Weighted Avg. ($ per sf/unit) $370 $181 $260 $192,264 $307,391
Median ($ per sf/unit) $161 $76 $176 $97,583 $142,683
All Transactions
Volume (Mil) $11,955 $4,807 $7,108 $8,839 $2,986
Size Weighted Avg. ($ per sf/unit) $203 $56 $141 $99,526 $143,128
Price Weighted Avg. ($ per sf/unit) $356 $150 $239 $181,903 $298,164
Median ($ per sf/unit) $115 $57 $108 $72,917 $82,143
Capitalization Rates (All Transactions)
Range (%) 4.1 - 10.9 5.9 - 10.0 5.9 - 12.7 4.2 - 10.0 7.0 - 8.3
Weighted Avg. (%) 6.3 7.9 7.8 5.7 7.5
Median (%) 7.1 8.5 7.8 5.9 7.9
Source: RERC.

Investment Trends Quarterly s Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute. 9
 National Office Property Sector

RERC Weighted Average Capitalization Rate w Respondents to the RERC/CCIM Investment Trends Quar-
(12-Month Trailing Average) terly survey reported mixed results for the office sector for
9% 9% third quarter 2010. Many respondents stated that the of-
fice sector is a good investment, given its attractive price.
However, other respondents said that due to foreclosures,
8% 8%
weak demand, and lack of absorption, the office sector was
a risky investment. In addition, recovery for this sector is
expected to be slow because of slow job growth and high
vacancy rates.
7% 7%

South West National w Total office sector volume increased 40 percent during
East Midwest
third quarter 2010 on a 12-month trailing basis, which was
6%
3Q09 4Q09 1Q10 2Q10 3Q10
6% the second largest increase among the various property
types. In addition, the size-weighted average price per
square foot of office space increased approximately 5
percent. The weighted-average capitalization rate for the
office sector fell to 6.8 percent, 40 basis points from the
RERC Size-Weighted Average PPSF previous quarter.
(12-Month Trailing Average)
$275
South West National
$275
w In contrast, the office sector volume and size-weighted
East Midwest average prices for transactions that totaled less than $5
$225 $225
million declined slightly on a 12-month trailing basis dur-
ing third quarter 2010. This is an indication of the division
$175 $175
within the commercial real estate market.

$125 $125
w The vacancy rate for the office sector rose by 20 basis
points to 17.6 percent during third quarter 2010, according
$75 $75
to Reis, Inc. This is the highest vacancy rate since 1993.
Net absorption was negative, and effective rent fared bet-
$25 $25
3Q09 4Q09 1Q10 2Q10 3Q10 ter than asking rent.

RERC Price-Weighted Average PPSF

(12-Month Trailing Average)
$500 $500
South West National
East Midwest
$400 $400

$300 $300

$200 $200

$100 $100

$0 $0
3Q09 4Q09 1Q10 2Q10 3Q10

Investment Trends Quarterly s Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute. 10
 National Industrial Property Sector

RERC Weighted Average Capitalization Rate w According to the RERC/CCIM Investment Trends Quar-
(12-Month Trailing Average) terly survey respondents, the industrial sector is a good
9.0% 9.0% investment option. Some respondents stated that industri-
al property tenants are becoming confident enough to ex-
pand their space usage because the economy is starting
8.5% 8.5%
to improve. In addition, there is also less risk and fair pric-
ing associated with this property type. Another positive
8.0% 8.0% sign is that according to the Federal Reserve’s October
20, 2010 Beige Book, manufacturing activity continues to
strengthen, with production and new orders rising across
7.5% 7.5%
South West National most districts.
East Midwest
7.0%
3Q09 4Q09 1Q10 2Q10 3Q10
7.0% w Total transaction volume for the industrial sector rose
nearly 25 percent on a 12-month trailing basis during third
quarter 2010. This was the first significant increase since
volume began leveling out for this property type during first
quarter 2009. The size-weighted average price per square
RERC Size-Weighted Average PPSF foot of industrial space continued to trend upward, while
(12-Month Trailing Average) the weighted-average capitalization rate declined to 8.2
$100
South West National
$100
percent.
East Midwest

$75 $75 w According to RERC’s 12-month trailing transaction analy-

sis, the price of industrial properties where the transac-
tion price was greater than $5 million rose slightly from the
$50 $50
previous quarter, following the upward trend of transac-
tions overall. However, the size-weighted average price of
$25 $25 industrial properties where the transaction price was less
than $5 million fell during third quarter.
$0 $0
3Q09 4Q09 1Q10 2Q10 3Q10 w The national industrial availability rate declined by 10 basis
points to 14.0 percent during third quarter, the first drop in
3 years, reported CBRE-Econometric Advisors. Despite the
slight decline, the industrial market is flooded with excess
RERC Price-Weighted Average PPSF supply, and the availability rate remains near a record high.
(12-Month Trailing Average)
$150 $150
South West National
East Midwest
$125 $125

$100 $100

$75 $75

$50 $50

$25 $25
3Q09 4Q09 1Q10 2Q10 3Q10

Investment Trends Quarterly s Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute. 11
 National Retail Property Sector

RERC Weighted Average Capitalization Rate w CCIM members generally considered the retail property
(12-Month Trailing Average) sector to be a reliable investment during third quarter,
10% 10% according to respondents to RERC/CCIM’s Investment
South West National Trends Quarterly survey. Several respondents said that
East Midwest the retail sector was in demand and pricing was good.
9% 9% However, the outlook for this sector remains uncertain be-
cause it depends greatly upon consumer confidence and
spending, which is shaky. Job growth is also essential for
8% 8%
the retail sector to recover.

7% 7% w Twelve-month trailing retail sector total volume increased

by 15 percent during third quarter 2010. In contrast, the
size-weighted average price remained unchanged dur-
6%
3Q09 4Q09 1Q10 2Q10 3Q10
6% ing third quarter, halting an upward trend which began in
third quarter 2009. At 8.4 percent, the weighted-average
capitalization rate fell for the first time since fourth quarter
2008.

RERC Size-Weighted Average PPSF w As stated above, the size-weighted average price of retail
(12-Month Trailing Average) property where sales transactions were greater than $5
$200 $200 million increased during third quarter. However, the size-
South West National weighted average price for retail properties where transac-
$175
Midwest
$175 tions that were less than $5 million declined.
East

$150 $150 w The vacancy rate for the retail property sector remained
unchanged at 10.9 percent during third quarter 2010, ac-
$125 $125
cording to Reis, Inc. Asking and effective rents also re-
$100 $100
mained unchanged from the previous quarter. Absorption
became slightly positive during third quarter; this is the first
$75 $75 time since the end of 2007 that absorption in this sector
has been positive.
$50 $50
3Q09 4Q09 1Q10 2Q10 3Q10

RERC Price-Weighted Average PPSF

(12-Month Trailing Average)
$300 $300
South West National
East Midwest

$250 $250

$200 $200

$150 $150

$100 $100
3Q09 4Q09 1Q10 2Q10 3Q10

Investment Trends Quarterly s Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute. 12
 National Apartment Property Sector

RERC Weighted Average Capitalization Rate w Respondents to the RERC/CCIM’s Investment Trends
(12-Month Trailing Average) Quarterly survey said that the apartment sector continues
8.0% 8.0% to be the most popular property type among commercial
real estate investors again during third quarter 2010, as
7.5% 7.5% noted by the increased number of property sales. In addi-
tion, apartment sector pricing has increased, which reflects
7.0% 7.0% higher demand, lower vacancy rates, and increasing rents.

6.5% 6.5% w The apartment market continued to improve, with 12-month

trailing apartment sector total volume increasing nearly 25
6.0%
South West National
6.0% percent. In addition, the 12-month trailing size-weighted av-
East Midwest erage price per unit increased 5 percent, while the weight-
5.5%
3Q09 4Q09 1Q10 2Q10 3Q10
5.5% ed average capitalization rate continued to fall, reaching
6.2 percent.

w Although, the size-weighted average price per apartment

unit increased for transactions that totaled more than $5
RERC Size-Weighted Average PPU million, the size-weighted average price per apartment unit
(12-Month Trailing Average) for transactions that totaled less than $2 million declined
$150,000
South West National
$150,000
10 percent.
East Midwest
$125,000 $125,000
w The vacancy rate for the apartment sector dropped to 7.1
percent during third quarter 2010, according to Reis, Inc.
$100,000 $100,000
This is one of the sharpest drops in apartment vacancy on
$75,000 $75,000
record. Net absorption increased by nearly 94,000 units,
the largest quarterly addition to occupied stock since 1999.
$50,000 $50,000
In addition, asking rents and effective rents grew by 0.5
percent and 0.6 percent, respectively.
$25,000 $25,000
3Q09 4Q09 1Q10 2Q10 3Q10

RERC Price-Weighted Average PPU

(12-Month Trailing Average)
$250,000 $250,000
South West National
East Midwest
$200,000 $200,000

$150,000 $150,000

$100,000 $100,000

$50,000 $50,000

$0 $0
3Q09 4Q09 1Q10 2Q10 3Q10

Investment Trends Quarterly s Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute. 13
 National Hotel Property Sector

RERC Weighted Average Capitalization Rate w According to respondents to the survey for the RERC/CCIM
(12-Month Trailing Average) Investment Trends Quarterly, the hotel sector is improving
9.5% 9.5% and deals can be found. Purchases have been increasing
more rapidly for hotels than for office buildings, shopping
9.0% 9.0% centers, and other types of commercial property, although
some respondents noted that many hotel deals are for dis-
8.5% 8.5% tressed assets.

8.0% 8.0% w According to RERC’s 12-month trailing transaction analysis,

National the total volume for the hotel sector increased nearly 50 per-
7.5%
East
7.5% cent during third quarter 2010. This was the largest volume
increase over the previous quarter among the various prop-
7.0%
3Q09 4Q09 1Q10 2Q10 3Q10
7.0% erty types. The size-weighted average price per hotel unit
continued to increase, rising 20 percent overall during third
quarter 2010, while the weighted-average capitalization rate
declined to 8.0 percent.

RERC Size-Weighted Average PPU w The size-weighted average price per hotel unit for trans-
(12-Month Trailing Average) actions that were greater than $2 million increased on a
$150,000
South West National
$150,000
12-month trailing basis during third quarter 2010. In compar-
East Midwest ison, the size-weighted average price per hotel unit among
$125,000 $125,000
transactions that totaled less than $2 million fell 10 percent.
$100,000 $100,000
w Hotel sector occupancy rose 7.5 percent to 64.2 percent in
$75,000 $75,000
September 2010, according to Smith Travel Research. The
average daily rate (ADR) increased 2.6 percent to $103.09.
$50,000 $50,000
Likewise, the revenue per available room (RevPAR) was up
10.3 percent to $108.57.
$25,000 $25,000
3Q09 4Q09 1Q10 2Q10 3Q10

RERC Price-Weighted Average PPU

(12-Month Trailing Average)
$300,000 $300,000
South West National
East Midwest
$250,000 $250,000

$200,000 $200,000

$150,000 $150,000

$100,000 $100,000

$50,000 $50,000

$0 $0
3Q09 4Q09 1Q10 2Q10 3Q10

Investment Trends Quarterly s Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute. 14
 East Region
Tr a n s a c t i o n B r e a k d o w n

East Transaction Breakdown

12-Month Trailing Averages (10/01/09 - 09/30/10)
Office Industrial Retail Apartment Hotel
< $2 Million
Volume (Mil) $260 $574 $668 $182 $9
Size Weighted Avg. ($ per sf/unit) $74 $44 $81 $44,207 $20,356
Price Weighted Avg. ($ per sf/unit) $111 $71 $123 $61,731 $35,953
Median ($ per sf/unit) $75 $52 $86 $50,000 $34,706
$2 - $5 Million
Volume (Mil) $396 $734 $884 $600 $56
Size Weighted Avg. ($ per sf/unit) $106 $48 $125 $71,342 $31,461
Price Weighted Avg. ($ per sf/unit) $175 $81 $243 $96,059 $36,609
Median ($ per sf/unit) $139 $67 $191 $79,259 $32,424
> $5 Million
Volume (Mil) $15,518 $2,417 $5,712 $7,916 $2,525
Size Weighted Avg. ($ per sf/unit) $252 $50 $166 $141,398 $154,364
Price Weighted Avg. ($ per sf/unit) $427 $140 $255 $229,336 $268,929
Median ($ per sf/unit) $218 $56 $158 $120,611 $128,737
All Transactions
Volume (Mil) $16,174 $3,725 $7,265 $8,697 $2,590
Size Weighted Avg. ($ per sf/unit) $235 $49 $146 $126,972 $139,509
Price Weighted Avg. ($ per sf/unit) $416 $118 $242 $216,646 $263,121
Median ($ per sf/unit) $118 $55 $115 $84,932 $77,897
Capitalization Rates (All Transactions)
Range (%) 4.1 - 10.9 5.8 - 11.7 4.2 - 10.0 4.5 - 9.3 6.8 - 9.0
Weighted Avg. (%) 6.6 8.0 8.0 6.2 7.6
Median (%) 7.5 8.4 7.6 6.8 8.0
Source: RERC.

Investment Trends Quarterly s Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute. 15
 South Region
Tr a n s a c t i o n B r e a k d o w n

South Transaction Breakdown

12-Month Trailing Averages (10/01/09 - 09/30/10)
Office Industrial Retail Apartment Hotel
< $2 Million
Volume (Mil) $363 $537 $756 $199 $18
Size Weighted Avg. ($ per sf/unit) $83 $40 $76 $29,678 $24,156
Price Weighted Avg. ($ per sf/unit) $113 $57 $118 $48,027 $34,658
Median ($ per sf/unit) $88 $47 $79 $35,208 $22,565
$2 - $5 Million
Volume (Mil) $321 $338 $757 $325 $82
Size Weighted Avg. ($ per sf/unit) $92 $36 $110 $28,486 $32,671
Price Weighted Avg. ($ per sf/unit) $134 $55 $191 $52,240 $50,250
Median ($ per sf/unit) $105 $43 $152 $31,311 $29,137
> $5 Million
Volume (Mil) $3,384 $1,595 $5,882 $5,060 $1,608
Size Weighted Avg. ($ per sf/unit) $133 $57 $139 $69,979 $111,329
Price Weighted Avg. ($ per sf/unit) $196 $92 $209 $119,266 $245,043
Median ($ per sf/unit) $143 $59 $156 $63,405 $92,752
All Transactions
Volume (Mil) $4,068 $2,471 $7,394 $5,584 $1,709
Size Weighted Avg. ($ per sf/unit) $122 $49 $125 $61,756 $96,492
Price Weighted Avg. ($ per sf/unit) $184 $79 $198 $112,827 $233,454
Median ($ per sf/unit) $100 $48 $97 $45,000 $56,426
Capitalization Rates (All Transactions)
Range (%) 6.8 - 10.4 7.5 - 9.5 5.8 - 12.7 5.0 - 10.1 7.9 - 10.7
Weighted Avg. (%) 7.8 8.3 8.7 6.7 9.2
Median (%) 8.8 8.6 8.0 7.5 9.3
Source: RERC.

Investment Trends Quarterly s Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute. 16
 Midwest Region
Tr a n s a c t i o n B r e a k d o w n

Midwest Transaction Breakdown

12-Month Trailing Averages (10/01/09 - 09/30/10)
Office Industrial Retail Apartment Hotel
< $2 Million
Volume (Mil) $198 $376 $391 $121 $16
Size Weighted Avg. ($ per sf/unit) $59 $26 $62 $29,902 $17,802
Price Weighted Avg. ($ per sf/unit) $81 $41 $102 $41,646 $22,419
Median ($ per sf/unit) $63 $34 $63 $31,905 $18,081
$2 - $5 Million
Volume (Mil) $143 $350 $297 $193 $45
Size Weighted Avg. ($ per sf/unit) $64 $31 $97 $28,107 $28,027
Price Weighted Avg. ($ per sf/unit) $121 $49 $195 $43,845 $36,407
Median ($ per sf/unit) $85 $41 $136 $36,002 $35,000
> $5 Million
Volume (Mil) $3,312 $1,311 $2,350 $1,452 $774
Size Weighted Avg. ($ per sf/unit) $146 $40 $169 $90,758 $121,548
Price Weighted Avg. ($ per sf/unit) $291 $84 $270 $173,755 $148,861
Median ($ per sf/unit) $119 $44 $158 $63,393 $111,512
All Transactions
Volume (Mil) $3,652 $2,037 $3,038 $1,766 $835
Size Weighted Avg. ($ per sf/unit) $129 $35 $130 $65,600 $94,214
Price Weighted Avg. ($ per sf/unit) $273 $70 $241 $150,478 $140,411
Median ($ per sf/unit) $71 $36 $80 $36,085 $52,134
Capitalization Rates (All Transactions)
Range (%) 6.2 - 9.7 6.8 - 11.0 6.7 - 10.0 5.0 - 10.1 -
Weighted Avg. (%) 6.9 8.8 8.0 6.4 -
Median (%) 8.5 9.0 7.9 8.0 -
Source: RERC.

Investment Trends Quarterly s Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute. 17
 We s t R e g i o n
Tr a n s a c t i o n B r e a k d o w n

West Transaction Breakdown

12-Month Trailing Averages (10/01/09 - 09/30/10)
Office Industrial Retail Apartment Hotel
< $2 Million
Volume (Mil) $435 $948 $677 $602 $29
Size Weighted Avg. ($ per sf/unit) $109 $75 $103 $58,867 $30,302
Price Weighted Avg. ($ per sf/unit) $144 $95 $140 $82,781 $39,350
Median ($ per sf/unit) $116 $83 $108 $66,667 $28,261
$2 - $5 Million
Volume (Mil) $753 $1,266 $1,000 $1,014 $142
Size Weighted Avg. ($ per sf/unit) $131 $79 $149 $77,109 $42,847
Price Weighted Avg. ($ per sf/unit) $209 $105 $254 $141,010 $52,492
Median ($ per sf/unit) $184 $93 $212 $122,000 $43,171
> $5 Million
Volume (Mil) $9,924 $3,751 $4,646 $6,371 $1,315
Size Weighted Avg. ($ per sf/unit) $222 $71 $182 $113,761 $128,907
Price Weighted Avg. ($ per sf/unit) $305 $169 $230 $172,987 $201,599
Median ($ per sf/unit) $180 $89 $185 $117,750 $115,629
All Transactions
Volume (Mil) $11,113 $5,965 $6,323 $7,986 $1,486
Size Weighted Avg. ($ per sf/unit) $204 $73 $163 $100,621 $102,709
Price Weighted Avg. ($ per sf/unit) $293 $144 $224 $162,132 $184,205
Median ($ per sf/unit) $147 $86 $139 $88,182 $60,606
Capitalization Rates (All Transactions)
Range (%) 5.0 - 12.9 4.2 - 12.2 5.9 - 12.6 4.2 - 11.1 -
Weighted Avg. (%) 7.0 8.4 8.6 5.9 -
Median (%) 7.9 8.8 7.7 6.1 -
Source: RERC.

Investment Trends Quarterly s Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute. 18
 GDP FOMC Policy Decisions
9 9 7 7
Discount Rate
7 7
Percent Change Quarter Ago

6 6
Fed Funds Rate
5 5
5 5
3 3

Percent
4 4
1 1
3 3
-1 -1
2 2
-3 -3

-5 -5 1 1

-7 -7 0 0
1Q 000
3Q 001
1Q 001
3Q 002
1Q 002
3Q 003
1Q 003
3Q 004
1Q 004
3Q 005
1Q 005
3Q 006
1Q 006
3Q 007
1Q 007
3Q 008
1Q 008
3Q 009
1Q 009
3Q 010
10

No -02

O -0 3

No -04

O -0 6

O -0 7
Ja 00

M -0 1

M -0 2

Ap 04

M -0 5

J u 08

S e 10
10
No 05

D 08
M -0 3
No 01

M -0 6

Ap 07

M 09
O 09
J u 01
20

g-

v-

-
p-
r-

r-
n-

-
n-
n-

ay

ay

ay

ay

ay
v

ec

ar
ct

ct

ct

ct
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2

Au
3Q

Source: Bureau of Economic Analysis. Source: Federal Reserve.

According to the Bureau of Economic Analysis(BEA), real gross domestic product (GDP)
growth increased to 2.0 percent on an annualized basis in third quarter 2010, and was revised
down to 1.7 percent in second quarter. This was the fifth consecutive quarterly increase.
Compared to a year ago, GDP increased 3.1%, the largest year-over-year increase since first
quarter 2005.
The Federal Open Market Committee (FOMC) expressed concern about the pace of recovery
at its September 2010 meeting, and noted that to boost economic growth and inflation, it will
likely provide more quantitative easing. The federal funds rate remained in the 0.0-percent to
0.25-percent range, and the discount rate remained at 0.75 percent. Short-term interest rates
are not expected to rise until early 2012.

Unemployment Manufacturing Utilization

12 12 85 85

10 10 80 80

8 8 75 75
Percent
Percent

6 6 70 70

4 4 65 65

2 2 60 60
0
ar 0
Ju -01
1
ar 1
Noul-02
2
ar 2
Ju -03
3
ar 3
Noul-04
4
ar 4
Ju -05
5
ar 5
Noul-06
6
ar 6
Ju -07
7
ar 7
Noul-08
8
ar 8
Ju -09
9
ar 9
Ju -10
0

Ja -00
Ju -01
No -01
Ap -01
Se -02
Fe 02
Ju 03
D l-03
M c-03
O -04
M t-04
Au r-05
Ja -05
Ju -06
No -06
Ap -06
Se -07
Fe 07
Ju 08
D l-08
M c-08
O -09
M t-09
Au r-10
10
Noul-0
M v-0

No l-0
M v-0
J -0
M v-0

No l-0
M v-0
J -0
M v-0

No l-0
M v-0
J -0
M v-0

No l-0
M v-0
J -0
M v-0

No l-0
M v-0

l-1

p-
b-

p-
b-

g-
g
n
n
v
r

ay

g
n
n
v
r

ay
a

a
c

c
e

e
Au
J

Source: Bureau of Labor Statistics. Source: Federal Reserve.

The unemployment rate was 9.6 percent in August and September 2010. Compared to the
previous quarter, job creation has tapered off. Employment remains weak as few people enter
the labor force and more workers are left waiting on the sidelines. The private sector continues
to struggle, and government payrolls decline. Based on third quarter data, the unemployment
rate is expected to climb to 10 percent and remain above 9 percent through 2011.
In September 2010, total factory output decreased 0.2 percent, the biggest decline since June
2009. Manufacturing utilization decreased slightly to 72.4 percent and has not moved much
during third quarter. Surveys suggest that the manufacturing slowdown will be temporary.

Consumer Price Index Retail Sales

0.5 0.5 10 10
8 8
Year To Year Percent Change
Percent Change Month Ago

0.4 0.4 6 6
4 4
0.3 0.3
2 2
0.2 0.2 0 0
-2 -2
0.1 0.1
-4 -4
-0.0 -0.0 -6 -6
-8 -8
-0.1 -0.1
-10 -10

-0.2 -0.2 -12 -12

0

0
09

10
9

10
09

0
9

10
10

Ju 8

Ju 9

Ju 0
Ja 07

Ja 08

Ja 09
M 08

M 09

M 10
No 07

No 08

No 09

10
M 08

M 09

M 10
-1

-1

Se 7

Se 8

Se 9

Se 0
-0

-1
-1

-1
-0

-0

-0

-1
l-0

l-0

l-0

l-1
v-

p-
p-

n-
n-

v-

v-

v-
ay

-
g

p-

p-

p-

p-
ly
ec

ar

n-

n-

n-
b

r
ct

ay

ay

ay
ar

ar

ar
Ap
No

Au

Se
Se

Fe

Ju
Ja

Ju

Ju
M
O

M
D

Source: Bureau of Labor Statistics. Source: Census Bureau.

The Consumer Price Index (CPI) rose 0.1 percent to 218.37 in September 2010, the third
consecutive month it has increased, although not as much as the past 2 months. Compared to
a year ago, the CPI was up 1.1 percent. Core inflation remained near zero, although food and
energy prices rose slightly. In the next few months, inflation is expected to strengthen, while the
threat of deflation should remain low.
Retail sales increased steadily by approximately 0.5 percent every month during third quarter
due mostly to back-to-school spending. In addition, year-over-year growth has accelerated,
with the strongest categories including auto dealers, electronics and appliance retailers, miscel-
laneous retailers, and nonstore retailers. Despite the increase in retail sales, consumers remain
financially constrained and consumer confidence is consistent with a deep recession.

Investment Trends Quarterly s Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute. 19
 Consumer Confidence Housing Affordability
120 120 190 190

180 180
100 100 170 170

160 160
80 80
150 150

Index
Index

140 140
60 60
130 130

40 40 120 120

110 110

20 20 100 100
O 02

O 07

Ju 8

Ju 9

Ju 0
Ja 03

Ja 08
Ap 04

Ap 09

Ja 07

Ja 08

Ja 09
M 01

Au 03

M 06

Au 08

M 08

M 09

M 10
Fe 05

10

No 07

No 08

No 09
Ju 6

10
Se 05
M 02

Se 10
No 04

M 07

No 09
Ju 4

Ju 9

M 08

M 09

M 10
D 6

Se 7

Se 8

Se 9

Se 0
-0

-0

-1
0
0

0
l-0

l-0

l-0

l-0

l-1
-

-
g-

g-
v-

v-
-

-
p-

p-
b-
r-
-

r-
n-

n-
n-

n-

v-

v-

v-
-

-
p-

p-

p-

p-
ay

ay

n-

n-

n-
ec

ar

ec

ar
ct

ct

ay

ay

ay
ar

ar

ar
Ju
D

Source: The Conference Board. Source: NAR.

Consumer confidence declined in third quarter 2010, although it increased slightly to 50.2 in The National Association of REALTORS® (NAR) Housing Affordability Index measures whether
October. Confidence remains low, due mostly to concerns about the lack of job growth and or not a typical family could qualify for a mortgage on a typical home. During third quarter
the overall economic recovery. Additional concerns include added healthcare expenses and 2010, the housing affordability index steadily increased and reached 179.1. This indicates that
financial and environmental regulations. a family is more than able to afford a median-priced home.

S&P 500 Existing Home Sales

Beginning of Month Adjusted Closing Price

1600 1600 8.0 8.0

1500 1500
1400 1400 7.0 7.0
1300 1300
1200 1200 6.0 6.0
Millions

1100 1100
1000 1000 5.0 5.0
900 900
800 800 4.0 4.0
700 700
600 600 3.0 3.0
e 9

10
e 1

e 2

e 3

e 4

e 5

e 6

e 7

e 8

Apc-09
Apc-00

Apc-01

Apc-02

Apc-03

Apc-04

Apc-05

Apc-06

Apc-07

Apc-08

Au r-10
Au r-01

Au r-02

Au r-03

Au r-04

Au r-05

Au r-06

Au r-07

Au r-08

Au r-09
D -0
D -0

D -0

D -0

D -0

D -0

D -0

D -0

D -0

ar 6

ar 7

ar 8

a 9
ar 4

ar 5
ar 1

ar 2

ar 3

Ju -07

Ju -08

Ju -09

Se r-10
Ju -05

Ju -06
Ju -02

Ju -03

Ju -04

10
g-

Nol-07

Nol-08

Nol-09
Nol-05

Nol-06
Nol-02

Nol-03

Nol-04
g
g

M v-0

M v-0
M v-0

M v-0

M v-0
M v-0

M v-0

M v-0

M v-0
e

p-
D

No

Source: S&P. Source: NAR.

The S&P 500 ended September 2010 at 1,141.20, up 0.06 percent from August. The S&P 500
continues to be volatile, but we have seen some improvement since July with the expectation
that the Fed will put more cash into the economy in order to safeguard the recovery.
Existing home sales increased by 10 percent in September 2010, at an annualized rate of 4.53
million units. Weak job growth, negative equity, and a lack of confidence continue to plague
the housing market. Access to mortgage credit is also limited, and foreclosure halts are going
to cause further difficulties. The housing outlook appears soft, with 2010 sales likely to be less
than 2009 sales, and there will be minimal gains until the latter half of 2011.

Index of Leading Indicators Single Family Home Supply

1.6 1.6 13 13
1.4 1.4
Percent Change Quarter Ago

12 12
1.2 1.2
1.0 1.0 11 11

0.8 0.8 10 10
Months

0.6 0.6
9 9
0.4 0.4
0.2 0.2 8 8
0.0 0.0
7 7
-0.2 -0.2
-0.4 -0.4 6 6
10

0
9

10
0

0
9

0
0

10
09
10

0
09

10
10

0
9

10
0

10

0
-1
0

-0

-1
-1

-1
-0

-1
-0

-0

-1

r-1
-0
l-1

l-1
-
v-

p-
n-

g-
n-

v-
p-

p-
b-

n-
ay

n-
g
ec

ar
b

r
ct

ay
g

ec

ar
ct
Ap
No

Ju

Au

Ap
No
Se
Fe

Ju
Ju
Ja

Au

Au
Se

Se
Fe

Ju
Ja
M
O

M
D

M
O

M
D

Source: The Conference Board. Source: NAR.

The Conference Board’s Index of Leading Indicators rose 0.3 percent in September 2010,
indicating that the pace of recovery is likely to remain slow in coming months. Compared to
a year ago, the leading index grew 5.9 percent. The labor market and housing indicators are
the main sources of weakness in the recovery, and the risk of a double-dip recession remains.
While struggling at present, the leading index is expected to gradually gain strength in 2011.
The July 2010 single-family home supply increased to a record high of 12.5 months, more than
double the normal rate of around 6.0 months. Since July, however, the monthly home supply
has continued to decline, falling to 10.7 months in September. Housing demand increased
slightly in September, due to record low mortgage rates.

Investment Trends Quarterly s Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute. 20
 Scope & Methodology
The analysis provided in the RERC/CCIM Investment Trends Quarterly is conducted by Real Estate Research Corporation (RERC). The information is gathered in raw form from surveys sent to
CCIM designees and candidates, and from sales transactions collected from various sources, including CCIM members, various key commercial information exchange organizations (CIEs), the
media, assessors’ offices, RERC contacts in the marketplace, and other reliable public and private resources. All sales transactions are aggregated, analyzed, and reported on by RERC. Additional
data and forecasts are provided courtesy of the REALTORS® Commercial Alliance and Torto Wheaton Research.
Published quarterly, the RERC/CCIM Investment Trends Quarterly report provides timely insight into transaction volume, pricing, and capitalization rates for the core income-producing properties.
RERC Definitions
Capitalization Rate: The capitalization rate is defined as the first year “stabilized” net operating income (NOI) (NOI is before capital expenditures – tenant improvements, leasing commissions,
reserves – and debt service) divided by the present value (or purchase price). Capitalization rates included are transaction-based medians and price-weighted averages.
RERC Capitalization Rate and Ranges: Capitalization rates and ranges listed throughout this report are based on RERC’s proprietary realized capitalization rate model, which includes available
transaction-based capitalization rates, NCREIF Index Returns, and other market factors, but is heavily weighted toward transaction-based capitalization rates for each property type within each market.
Price-Weighted Average: The price-weighted average is developed through weighting each asset based on the gross sales price. Therefore, larger dollar properties are given more weight than the
smaller dollar properties, with the weighted average reflecting more weight towards institutional real estate.
Size-Weighted Average: The size-weighted average is developed through weighting each asset based on its gross square footage – simply an aggregation of all the gross sales prices divided by
the aggregation of the gross square footage.
National/Regional Market Analysis: RERC ranks the investment potential of the metros and property types it covers based on various space market and financial market criteria, including pricing,
capitalization rates, vacancy rates, and other factors.
Investment Conditions Rating: A rating of 1 through 10 (with 10 being high) reflecting survey respondents’ collective views of the investment environment for a particular property type in comparison
with other property types. The rating may take into account supply and demand, economic conditions, pricing, rental rates, or other factors.
NCREIF Definitions
NCREIF: The National Council of Real Estate Investment Fiduciaries (NCREIF) is an independent organization dedicated to the compilation, validation, and distribution of performance data for the
institutional real estate investment community.
Total Return: The total return includes appreciation (or depreciation), realized capital gain (or loss), and income. It is computed by adding the income and capital appreciation return on a quarterly
basis.
Implied Cap Rate (Income Return): The implied capitalization rate measures the portion of return attributable to each property’s NOI. It is computed by dividing the total NOI by the total quarterly
investment.
Capital Appreciation Return: The capital appreciation return measures the change in market value adjusted for any capital improvements/expenditures and partial sales divided by the average
quarterly investment.
Annual and Annualized Returns: Annual returns are computed by chain-linking quarterly rates of return to produce time-weighted rates of return for the annual and annualized periods under study.
For time periods beyond 1 year, the annualized returns are expressed as the annual compounded rate of return.
Allocation: The distribution, expressed as a percentage of the overall investment, in a particular geographic area by property type.
For a detailed description of the proceeding returns, as well as the calculations used by NCREIF to derive these figures, please visit http://www.ncreif.org/indices.
The combined returns are the weighted average of the returns for each property type according to the proportionate market value of properties surveyed relative to the total market values surveyed
during a time period.
RERC Defined Regions and MSAs
West: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming
Midwest: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin
South: Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Oklahoma, Tennessee, Texas
East: Connecticut, Delaware, Kentucky, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia,
Washington D.C., West Virginia
Metropolitan Statistical Area (MSA): A geographic unit comprised of one or more counties around a central city or urbanized area with 50,000 or more population. Contiguous counties are
included if they have close social and economic links with the area’s population nucleus.
With a few exceptions, the MSAs within this report coincide with the U.S. Office of Management and Budget’s December 2005 definitions for each MSA. For example, St. Paul, Minn., and Bloom-
ington, Minn., as well as many other suburbs, are included within the Minneapolis MSA.
Note of Caution: It is imperative to exercise caution when comparing the data contained herein to previous reports published by RERC. The data herein is not “fixed,” and will be updated and
changed as additional transaction information is gathered and analyzed.
Disclaimer: This publication is designed to provide accurate information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering
legal or accounting service. The publisher advises that no statement in this issue is to be construed as a recommendation to make any real estate investment or to buy or sell a security or as
investment advice. The examples contained in the publication are intended for use as background on the real estate industry as a whole, not as support for any particular real estate investment or
security. Although the RERC/CCIM Investment Trends Quarterly uses only sources that it deems reliable and accurate, Real Estate Research Corporation (RERC) does not warrant the accuracy of
the information contained herein.

Investment Trends Quarterly s Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute. 21
 Acknowledgements
RERCsCCIM Investment Trends QUARTERLY
RERC Editorial Staff

The RERC/CCIM Investment Trends Quarterly is produced by Publisher

Real Estate Research Corporation (RERC) in association with Kenneth P. Riggs, Jr.
CFA, CRE, FRICS, MAI, CCIM
and for members of the CCIM Institute.
Editor-in-Chief
Barb Bush
Real Estate Research Corporation
Lead Analyst
Founded more than 75 years ago, Real Estate Research Corporation Brian Velky, CFA
(RERC) was the nation’s first independent real estate firm that specialized
in both real estate research and analysis. Recognized as a pioneer in the Research Analysts
art of real estate management and for monitoring key sectors of the econ- Greg Philipp
Kyle Corcoran
omy that influence the real estate industry, RERC has retained its place as Cliff Carlson
one of the industry’s leading real estate investment trends analysts through Charles Gohr
the publication of such reports as Expectations & Market Realities in Real David Kelly
Estate and the RERC Real Estate Report. Today, RERC is known for its Lindsey Kuhlmann
research publications and market studies, commercial property valuations, Meredith Steffen
Ye Thway
complex consulting assignments, portfolio Morgan Westpfahl
management and technology services, and
independent fiduciary services. Layout & Design
Jeff Carr

The CCIM Institute Data Management

Scott Hamerlinck
Since 1969, the Chicago-based CCIM Institute has conferred the Certi- Ben Neil
Daniel Warner
fied Commercial Investment Member (CCIM) designation to commercial
real estate and allied professionals through an extensive curriculum of 200 Production Committee
classroom hours and professional experiential requirements. Currently, Terri Cotter
there are 9,000 CCIMs in 1,000 markets in the U.S. and 31 additional coun- Nicole Hardy
tries. Another 7,000 practitioners are pursuing the designation, making the
institute the governing body of one of the largest commercial real estate Research Assistant
Jeffrey Harms
networks in the world. An affiliate of the National Association of Realtors®,
the CCIM Institute’s recognized curriculum, networking programs, and
powerful technology tools such as the Site To Do Business (site analysis CCIM Institute
and demographics resource) and CCIMREDEX (commercial property data
exchange), impact and influ- President
Frank N. Simpson, CCIM
ence the commercial real es-
tate industry. Visit www.ccim. President-Elect
com, www.stdbonline.com, Leil Koch, CCIM
and www.ccimredex.com for
more information. First Vice President
Wayne D’Amico, CCIM

Copyright Notice for RERC~CCIM Investment Trends Quarterly Treasurer

Charles C. Connely IV, CCIM
Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute. All rights
reserved. No part of this publication may be reproduced, duplicated, or copied in any form, includ- Executive Vice President/CEO
ing electronic forwarding or copying, xerography, microfilm, or other methods, or incorporated into Henry F. White, Jr.
any information retrieval system, without the written permission of RERC and the CCIM Institute.

Investment Trends Quarterly s Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute. 22
 Contributors

Shahid K. Abdulla Broadway National Bank San Antonio, TX Edward DeLaurier JAX Realty Advisors Jacksonville, FL
Due Diligence Research Bob Dikman The Dikman Company Tampa, FL
Denise Adams Raleigh, NC
Group
John Dohm Miami, FL
Alan Apt Aptcor Commercial Philadelphia, PA
Thalhimer/Cushman &
G. Anthony Baldwin Baldwin Realty Group Boston, MA Mark Douglas Richmond, VA
Wakefield
Sperry Van Ness/The RE/MAX Commercial
Bo Barron Kentucky Roy Drake Denver, CO
Barron Group Alliance
Beau Beery AMJ Inc. of Gainesville Gainesville, FL Skip Duemeland Duemelands Bismarck, ND
Andy Bell Anderson Bell, Inc. Atlanta, GA Asset Management
Alexander Eagle San Francisco, CA
Group
Besaw and Associates
Tim J. Besaw Milwaukee, WI Randi Erickson KW Commercial Minneapolis, MN
Realty Ltd.
J D Property Manage- Eshenbaugh Land
Bonnie Brown Orange County, CA Bill Eshenbaugh Tampa, FL
ment Company
CoveStar Investment Western North Matthew Farrell CORE Partners Detroit, MI
Curtis A. Burge
Realty Advisors Carolina
W Darrow Fiedler KW Commercial Los Angeles, CA
David Butchello Thalhimer Norfolk, New Jersey
David Fisher Colliers International West
Jacob Cannon Nationwide Insurance Denver, CO
Tri-Oak Commercial
Grandbridge Real Estate Gregory Fitzgerald Indianapolis, IN
Tony Carlson Minneapolis, MN Group
Capital
Patrick Fitzgerald BankUnited Orlando, FL
Juan Carlos Prudential Indiana Realty
Bloomington, IN
Carrasquel Group Elizabeth King
Grubb & Ellis Company Chicago, IL
Forstneger
Quentin Caruso Realty Capital Advisors Orlando, FL
Southport Realty-
Susan Cerone RealtyUSA East Peter A. Frandano Wilmington, NC
Carolina Acreage
Mick Cluck Tucson Realty and Trust Tucson, AZ Hudson Peters
Sara Fredericks Dallas, TX
Commercial
Collins Commercial Greensboro/Winston
Raymond D. Collins Carlos A. Fuentes VET Realty Tampa, FL
Properties Salem, NC
Ra Co Real Estate Sam Fung Oregon Commercial Oregon
Ralph Conti South
Advisors
Gina Gamble NAI Las Vegas Las Vegas, NV
Salvatore Crifasi Crifasi Real Estate, Inc New York, NY
Century 21 Golden Post
Century21 Davenport & Todd Gannet Northern New Jersey
David L. Davenport Midwest Commercial
Associates
Q10 | Amegy Mortgage
Luke Davidson Colliers International Denver, CO Paul Gardaphe Houston, TX
Capital
Central Valley of Betty Gonzalez Keyes Commercial RE Miami, FL
Dale DeBoer
California
Rick Gonzalez Rick Gonzalez Inc. Orlando, FL

Investment Trends Quarterly s Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute. 23
 Contributors

Carolyn Graden The Rants Group Seattle, WA Kenneth Krawczyk K.S.K. Services, Inc. Milwaukee, WI
CCIN Real Estate Century 21 Signature
Norman W. Gregory South Kenneth M. Kujawa Midwest
Services Realty
Jag Grewal Ian Black Real Estate Tampa, FL Christina S. Kurtz-
CBC Atlantic Properties Orlando, FL
Clark
Louise Giuliano Brokers Network New York, NY
NAI Latter and Blum
Karl Landreneau New Orleans, LA
Thomas Hankins NAI Realvest Orlando, FL Realtors

Ryan Harrison Magi Real Estate San Antonio, TX Lance Langenhoven KW Commercial Houston, TX
Equity Investment
Tim Hearn Hearn Burkley Baltimore, MD Nicholas E. Ledvora Orlando, FL
Services
Dennis Hearst Cushman & Wakefield San Diego, CA Becky Leebens KW Commercial Minneapolis, MN
Ostendorf Morris
W Farley Helms Cleveland, OH Chris Leon Realty World San Francisco, CA
Company
Com-Spec Properties, Robert A. Liebeck MJ Peterson Commercial New York, NY
Jerry Hempenius Los Angeles, CA
Inc. Re/Max Commercial
Michael Lunn Chicago, IL
Robert J. Hocken- Property Solutions
Roy Wheeler Realty Co. East
smith
Ned Madonia Tryskelion Las Vegas, NV
Kamil Homsi Global Realty Capital East
Investment Property
Janet Manglitz Portland, OR
David Huffman Wiggin Properties Oklahoma City, OK Advisors

Stephen Jacquemin S.J. Financial Group St. Louis, MO Charles A. McClure McClure Partners Dallas, TX

Michael P. Jakubiec UCR Properties/

Micah McCullough Mississippi
Michael P. Jakubiec Investment Real Estate, Chicago, IL Underwood Companies
Inc. Kayvan Mehr-
Sperry Van Ness Washington D.C.
bakhsh
Elliott Jamison Realty Capital Orlando, FL
Joe Milkes Milkes Realty Valuation Dallas, TX
Cornerstone Commercial
Bryan Jerome Tampa, FL
Realty Commercial Properties
Nick Miner Phoenix, AZ
Inc
Richard Jgue RE/MAX Commercial New Orleans, LA
Bill Mohr Mohr Financial West
Newmark Knight Frank
John Joyce Chicago, IL
Epic Daniel A. Molello Jones-Healy Realtors Denver, CO
Todd Kamps Kwekel Companies Midwest Chase Monroe Keystone Partners Charlotte, NC
Katherine Williams Florida Keys / Monroe
The Maestro Fund Boston, MA Guy Moreau Coco Plum Realtors Inc
Kane County, FL
Deegan-Sanglyn Charlene Moss Realty,
Dave Kanney New York, NY Charlene Moss Wasilla, AK
Commercial Real Estate Inc.
Juanita Kiesling WestMark, Realtors West Texas Richard Murdock Grubb & Ellis Company San Diego, CA

Investment Trends Quarterly s Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute. 24
 Contributors

Scott Naugle RPIMLLC Washington, D.C. Neil Victor Sperry Van Ness Alabama
Nick Nicketakis CBSRE Chicago, IL Todd Walsh The Colorado Group Denver, CO
Ed Nutting Marcus & Millichap Atlanta, GA Long McBughuy New Hampshire/
Bruce Waters
Commercial Vermont
Realty Executives
Rick Padelford Phoenix, AZ RE/MAX of Spokane-
International Tom Watson Spokane, WA
Commercial
Sean Patrick Ackerman & Co Atlanta
Dean Weitenhagen Fleetwood CRES Iowa
Aviva Investors North
Susan Pfeil Midwest Brian Whitmer Cushman & Wakefield Northern New Jersey
America
Peter Rasmusson Lee & Associates Northern New Jersey Jeff Wilke Graham & Company Huntsville, AL
Commercial Choice Nicole Wiloughby M&I Bank Milwaukee, WI
David Reese Pittsburgh, PA
Realty
Robert Wilson REMAX Southwest Houston, TX
Lidstrom Commercial
Dan Robinson Midwest
Realtors Patrick Wolford Patrick Henry Properties Houston, TX
Bob Rosenberg Investnet Inc. Sacramento, CA Jason Wong Red Point Development Tucson, AZ
Southwest Florida / Valentine Sales and
Bjorn Rosinus Alico Commercial Group Allan Woodruff Phoenix, AZ
Fort Myers Management
Elliott M. Ross Ross Realty Group Inc. Tampa, FL Jim Wright Jim Wright Company Killeen-Temple, TX
Alpha Commercial Real
Bob Rourke Charlotte, NC Diane Baer Yecko BT Property Associates Pittsburgh, PA
Estate
Coldwell Banker
Suheil Sahouria The Trafton Group San Francisco, CA Oscar Zamudio Chicago, IL
Commercial NRT
Kinlin Grover Mizrach Realty
Nat Santoro Boston, MA Daniel Zelonker Miami, FL
Commercial Group Associates
Ernest Soble Commercial
Stephen M. Soble San Antonio, TX
Properties

Thank you to all

Gambone, Songer &
Thomas Songer III Pittsburgh, PA
Associates
Magic Properties &
Phil Spinney Orlando, FL
Investments

Rob Stefka

Blaine Strickland
Commercial Investment
Services
Remora Partners
Omaha, NE

Orlando, FL
who shared
Dewey Struble

Angie Sumner
Sperry Van Ness
Jack Fowler &
Associates
Reno-Sparks, Nevada

Northern AZ
information
for this report.
Rob Sutton The Royston Group Los Angeles, CA
Duke Suwyn Colliers International Detroit, MI
Mark Vellinga Graham Organization Souix Falls, SD

Investment Trends Quarterly s Copyright© 2010 by Real Estate Research Corporation (RERC) and the CCIM Institute. 25