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NAIOP Broker UpdateOffice Market:

Tenant Representation Perspective

September 2011

Cheri O’NeilSenior Vice PresidentBranch ManagerStudley, Inc.

Washington, DC

Orange County

San Francisco

Silicon Valley

South Florida

Houston

New York City

Philadelphia CBD

Dallas/Fort Worth

U.S.

Suburban Philadelphia

Los Angeles

San Diego

Atlanta

Tampa Bay

Chicago CBD

Denver

Suburban Maryland

Northern New Jersey

Northern Virginia

-4.0 -2.5 -1.0 0.5 2.0

-2.9

-2.7

-2.7

-2.5

-1.7

-1.5

-1.4

-0.8

-0.8

-0.7

-0.7

-0.2

-0.1

0.0

0.0

0.5

1.0

1.0

1.1

1.4

Availability Rate PP Change (Y-O-Y)

(%)

Washington, DC

New York City

Philadelphia CBD

Suburban Maryland

Silicon Valley

San Diego

San Francisco

Chicago CBD

Northern Virginia

U.S.

Houston

Northern New Jersey

Orange County

Los Angeles

Suburban Philadelphia

Denver

South Florida

Tampa Bay

Dallas/Fort Worth

Atlanta

0% 10% 20% 30%

11.2%

11.3%

13.8%

15.5%

16.0%

16.4%

17.0%

17.7%

17.9%

18.1%

18.4%

19.7%

19.8%

20.2%

20.8%

21.1%

21.3%

23.2%

25.6%

25.9%

September 2011

Office Market: Tenant Representation Perspective2

Availability Rates Major Market Comparison

• Washington, DC and New York City have the lowest availability and are already pushing rental rates.

• Tampa Bay availability was flat compared to the same period last year.

Tampa Bay

Availability PP Change (Y-O-Y)Availability Comparison

Tampa Bay

U.S.

Tampa Bay

• US Average Asking Rents - $28.41; down .01% from a year ago; • The highest priced markets saw the greatest increase.• Tampa Bay Asking Rents decreased by 2.3% from the same period last year. • Tampa Bay continues to be one of the least expensive; down a notch from last year.

September 2011

Office Market: Tenant Representation Perspective3

Rental Rates (2Q 2011 vs. 2Q 2010)Major Market Comparison

San Francisco

Silicon Valley

New York City

Northern Virginia

Chicago CBD

Suburban Maryland

Atlanta

Northern New Jersey

Dallas/Fort Worth

Suburban Philadelphia

U.S.

Philadelphia CBD

Denver

Tampa Bay

Houston

Los Angeles

Washington, DC

South Florida

Orange County

San Diego

-10% -5% 0% 5% 10% 15%

12.8%

10.4%

7.2%

2.2%

1.5%

1.0%

0.5%

-0.3%

-0.4%

-0.5%

-0.6%

-0.8%

-0.9%

-2.3%

-2.6%

-3.6%

-3.7%

-4.8%

-5.0%

-5.2%

Annual Change in Asking Rents

(%)

Tampa Bay

New York City

Washington, DC

San Francisco

Chicago CBD

Silicon Valley

Northern Virginia

U.S.

Los Angeles

South Florida

San Diego

Northern New Jersey

Suburban Maryland

Philadelphia CBD

Suburban Philadelphia

Orange County

Houston

Atlanta

Tampa Bay

Denver

Dallas/Fort Worth

$0 $10 $20 $30 $40 $50

$50.69

$47.31

$32.72

$32.46

$30.04

$28.79

$28.41

$27.87

$27.16

$25.98

$25.87

$25.74

$25.46

$24.83

$23.23

$22.80

$21.03

$20.52

$19.92

$19.92

Overall Asking Rents

($/sf)

Tampa Bay

Overall Asking Rents Annual Change in Asking Rents

U.S.

Tampa Bay

Dallas/Fort Worth

Silicon Valley

San Diego

Houston

New York City

New Jersey

National

L.A

Tampa Bay

Washington, DC

San Francisco

South Florida

Orange County

Denver

Chicago

Philadelphia

Atlanta

-2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0%

4.2%

3.8%

2.6%

2.6%

2.3%

1.8%

1.8%

1.6%

1.5%

1.5%

1.2%

1.1%

0.2%

0.1%

-0.1%

-0.4%

-1.4%

Change in Office-Using Employment (May 2010 - May 2011)

(%)

Philadelphia

Atlanta

Denver

Orange County, CA

Chicago

South Florida

Tampa Bay

LA

San Francisco

U.S.

New Jersey

Boston

San Diego

Seattle

New York City

Houston

Silicon Valley

Washington, DC

Dallas/Fort Worth

0% 10% 20% 30% 40% 50% 60% 70% 80%

0.1%

1.2%

6.3%

7.9%

8.3%

8.9%

11.1%

14.1%

18.2%

23.1%

24.1%

25.8%

27.4%

46.1%

47.1%

47.9%

56.7%

62.5%

68.6%

Recovery of Office-using Jobs lost in RecessionRecovery of Office-using Jobs lost in Recession

Tampa Bay

September 2011

Office Market: Tenant Representation Perspective4

Office-using Employment (Losses vs. Gains)Major Market Comparison

• As of June 2011, 23.1% of US jobs lost during the recession have been recovered;

• 11.1% of Tampa Bay jobs lost have been recovered.

• Office-using employment in Tampa Bay increased Y-O-Y by 1.5% as of 2Q 11 .

U.S.

Tampa Bay

Tampa Bay

September 2011

Office Market: Tenant Representation Perspective5

Emerging Confidence Tampa Bay is on the Rebound

• Nationally, Tampa Bay is once again perceived as a very affordable option with a deep employment base.

• According to the Tampa Hillsborough EDC, 2011 is turning into a banner year, with 1,924 new jobs YTD for Hillsborough County alone. In addition, there are currently four other projects in the 2011 Hillsborough pipeline representing another 1,460 new jobs.

• Longer term commitments – Benefits outweigh flexibility, risk aversion.

September 2011

Office Market: Tenant Representation Perspective6

Advising Our ClientsSecuring the Tenant’s Interest

• According to Real Capital Analytics, Tampa Bay has already worked out 32% of its distressed properties at a 54% recovery rate (not including fees) and currently has another 337 outstanding, which is 16% less than 2010.

• Changes affecting Tenants – Financial (Topic 840 - FAS 13); Physical (Workplace Environments); Technological (IT Infrastructure).

• Distressed Property concerns – Debt Restructures, Time Delays, TI’s & Commissions, Building Services, etc.

September 2011

Office Market: Tenant Representation Perspective7

Today’s ViewBalancing Concerns & Concessions

• Changes affecting Landlords;

• Structuring the Deal, Creating the “Win-Win”;

• Those Tenants and Landlord best equipped to deal with change will fare the best;

• Tampa Bay Office Market … positioned for recovery!