Sample Retail Asset Advisor

11201 US Highway OneNorth Palm Beach, FL 33408

ContentsReis Observer 3

Metro AnalysisSection 1 - Current Metro Rent Details 13Section 2 - Nonanchor Rent Growth Comparisons 13Section 3 - Current Metro Rent Details 14Section 4 - Nonanchor Rent Growth Comparisons 14Section 5 - Current Metro Vacancy Details 15Section 6 - Vacancy Rate Comparisons 15Section 7 - Current Metro Vacancy Details 16Section 8 - Vacancy Rate Comparisons 16Section 9 - Nonanchor Rent Growth Comparisons and Forecast 17Section 10 - Vacancy Rate Comparisons and Forecast 17Section 11 - Metro Inventory Detail 18Section 12 - Inventory Growth Comparison 18Section 13 - Construction/Absorption Change 19Section 14 - Construction Deliveries 20Section 15 - Submarket New Construction Project Tally 20Section 16 - Metro Inventory Detail 21Section 17 - Construction/Absorption Change 21Section 18 - Occupancy at Completion 22Section 19 - Stabilization Data 22Section 20 - New Construction Listing 23Section 21 - Submarket Snapshot 25Section 22 - Economic and Demographic Trends 26Section 23 - Metro Area - Palm Beach 27Section 24 - Metro Data 28Section 25 - Metro Data 29Section 26 - Metro Data 30

Submarket AnalysisSection 27 - Current Submarket Rent Details 32Section 28 - Nonanchor Rent Growth Comparisons 32Section 29 - Current Submarket Rent Details 33Section 30 - Nonanchor Rent Growth Comparisons 33Section 31 - Current Submarket Vacancy Details 34Section 32 - Vacancy Rate Comparisons 34Section 33 - Current Submarket Vacancy Details 35Section 34 - Vacancy Rate Comparisons 35Section 35 - Nonanchor Rent Growth Comparisons and Forecast 36Section 36 - Vacancy Rate Comparisons and Forecast 36Section 37 - Submarket Inventory Detail 37Section 38 - Inventory Growth Comparison 37Section 39 - Construction/Absorption Change 38Section 40 - Submarket Data 39Section 41 - Submarket Data 40Section 42 - Submarket Data 41

Rent CompsSales Comparables

Because Reis Observers are narrative reports that present a thoughtfulanalysis of Reis findings in a given metro, our editorial staff can notbegin writing them until the Reis quartely data is released. Therefore theObservers are published on a rolling schedule throughout the quarter and maycontain data that predates the rest of this Asset Advisor by one quarter.

Reis Observer

Reis Observer PALM BEACH

1

Published October 24 2007

Manufacturing3% Constr, Trans,

Util, Nat. Rsrce10%

Wholesale4%

Information2%

Finance7%

Prof. & Business Svc.

21%Retail Trade & Consumer Svc.

17%

Leisure & Hospitality

12%

Government11%

Education & Health Svc.

13%

Source: BLS

THE ECONOMY

Like other hard-hit areas of South Florida, upscale Palm Beach County must patiently bide its time as the housing-lending downturn runs its course. Home sales and building remain down and employment in the county’s construction sector is down as well—for the first time in several years. According to data provided by the U.S. Department of Labor, Bureau of Labor Statistics (BLS), this sector lost 1,100 jobs net over the 12-month period concluding with July 2007. According to the U.S. Bureau of the Census, residential building authorizations for the first eight months of the year for the greater Miami area are down 55.2% year over year. While these are serious matters, the slowdown in the Palm Beach County economy, as a whole to-date, has been less than drastic. Over the 12-month period ending with July, nonagricultural employment grew at the rate of 2.5% (adding 14,100 jobs net), a substantial growth rate by any standard. Concerns expressed earlier in the year by some local observers that regional economies would be in recession by summer 2007 now seem grossly exaggerated. As of late June, The Florida Metro Forecast from the Institute for Economic Competitiveness at the University of Central Florida was predicting a “soft landing” for the state as a whole. Job growth in Palm Beach County, meanwhile, has been particularly strong in the leisure and hospitality sector, which added 5,400 jobs over the latest July-to-July period for a striking 7.9% gain. Substantial increases were achieved as well by the professional and business services, education and health services, and trade sectors. And waiting in the wings is the biotechnology sector with its bright promises for the future of the Palm Beach economy. Anchoring this sector is Scripps Research Institute and the new development it is expected to generate. Scripps presently is developing a facility in Jupiter. After averaging 2.2% over the five-year period concluding with 2004, population growth has slowed significantly, according to Moody’s Economy.com, with the slowdown likely a result of rapid home price escalation. Growth rates in 2005 and 2006, accordingly, were 1.3% and 1.6%. Improvement, however, is on the way: this source is projecting a gain of 2.4% for 2007 (31,000 residents net) with larger gains expected thereafter.

Employment: • BLS reports a seasonally

unadjusted unemployment rate of 4.8% in August for the West Palm Beach Metropolitan Division, up from 4.1% a year earlier.

• Moody’s Economy.com reports a

second quarter 2007 average household income of $130,751 for the Palm Beach County metro area. Average household incomes of $112,361 and $103,273 are reported for the top metros in the nation and South Atlantic region, respectively.

Employment Growth

Employment by Sector:

-10-505

1015202530

91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06

Jobs

Add

ed (0

00's

)

-2%-1%0%1%2%3%4%5%6%

Rate of G

rowth

Jobs Added Rate of GrowthSource: BLS

Retail - Asset Advisor Reis ObserverOctober 24, 2007

Metro: Palm Beach

Copyright 2007 Reis, Inc. Page 4


2


OUTLOOK

It may be 2009 before the housing market rights itself. So far, the Palm Beach County economy has done well in weathering the upset. Over the longer term, the county economy’s significant assets—its diversity, its affluent and well-educated work force, its strong population growth profile, and the promise seen in biotechnology—bode well.


Metro: Palm Beach



3


Palm Beach County Office Supply and Demand Trends

-1,000

-500

0

500

1,000

1,500

2,000

92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11

Squa

re F

eet (

000'

s)

0%

5%

10%

15%

20%

25%

30%

Vacancy R

ate

Completed Absorbed Vacancy RateSource: Reis, Inc.

THE REAL ESTATE MARKET

OFFICE

The present year, and possibly next year as well, will challenge the office market with increasing volumes of new supply at a time of slower economic growth. The 608,000 square feet Reis expects will deliver this year would be the largest single-year sum since 2001. Fortunately for the health of the market, total existing inventory should grow by only about 400,000 square feet, as some existing spaces depart from the market. The near lack of deliveries year-to-date (48,000 square feet) has allowed the vacancy rate to slip to 10.3% during second quarter, shedding 30 basis points. First Glance reporting from Reis indicates a third quarter vacancy rate of 11.1%. Net absorption for the year is forecast at 283,000 square feet. Reis expects 2008 to present the market with 912,000 square feet of new space as development remains active. The firm’s latest forecast expects net absorption to remain close at 852,000 square feet. At 10.5% asking and 11.5% effective, last year’s rent growth was extraordinary. High development costs for new space have been a central element in rent growth in many of the nation’s markets, especially where, as in Palm Beach County, hungry condo developers have pushed up the price of land. Second quarter asking and effective rents were reported at $28.38 psf and $24.46 psf, while third quarter First Glance data show an asking rent of $28.81 psf. In addition, investment sales at high prices mandate higher lease rates as new owners pass their acquisition costs on to tenants. Both Blackstone Group and JP Morgan, for example, have been recent buyers of Palm Beach County office properties (see Special Real Estate Factors for more information about current investment dynamics in the county market). For its part, CB Richard Ellis reports 1.0 million square feet under construction per the close of third quarter, with

Special Real Estate Factors: : : : • Office: “Developers and

financiers, trying to make sense of high purchase prices for premier properties, suspect the deals will drive up tenant lease rates to unsustainable heights and make it even tougher for smaller investors to buy.” So states CB Richard Ellis in its third quarter 2007 report on the local market. “Regional investors are exploring cheaper markets or taking on institutional partners to pave the way to quicker, cheaper funding.” Meanwhile, the subprime lending troubles have raised borrowing costs “and tightened the supply of money for even the largest investors.”

• Apartment: “Transaction velocity continues to decelerate due to the absence of conversion buyers and tighter mortgage financing,” states Marcus & Millichap Real Estate Investment Brokerage Company in a third quarter report on the local market. Average cap rates and property prices are “difficult to discern” at present due to the substantial slowdown. For sales closed over the four-quarter span concluding with the second of 2007, Reis reports an average capitalization rate and selling price of 7.1% and $326,713 per unit.

• Retail: A big and quiet deal. In what the Palm Beach Post described in August as “a hush-hush deal,” Menin Development has sold nearly all of its stake in the Downtown at the Gardens shopping center to Institutional


Metro: Palm Beach



4


Palm Beach County Apartment Supply and Demand Trends

-8,000

-6,000

-4,000

-2,000

0

2,000

4,000

6,000

92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11

No.

of U

nits

0%

2%

4%

6%

8%

10%

12%

Vacancy R

ate


most of the space underway in the West Palm Beach and Boca Raton submarkets. Net absorption year-to-date is reckoned by this source at negative 198,700 square feet; the net absorption for third quarter was negative 84,000 square feet. The largest for-lease project presently under construction is the 296,000-square-foot second phase of CityPlace Tower in West Palm Beach, for which Reis expects completion in January. The 167,000-square-foot Milan at Towncenter is underway in Boca Raton for delivery the following month. • CB Richard Ellis reports third quarter vacancy at 11.9%, up from 8.4% four quarters

earlier. The average asking rent is given as $19.90 psf full-service gross, up 5.1%.

APARTMENT

The condo conversion trend, that assisted the apartment market by supporting its occupancy, has undergone a dramatic reversal due to oversupply in the condo sector. According to Reis, net re-conversion during the final quarter of last year returned 1,248 units to the rental sector. Accordingly, apartment supply increased by 2,094 units during the last half of last year (new construction of 846 units plus the re-converted units). With this, the rapid decrease in vacancy and strong rent growth established during the preceding period come to an end. Further, a slowdown in rental development and zero net conversions to-date in 2007 have been of little help. Second quarter vacancy was 7.0%, up 50 basis points from the end of last year and on its way to 7.3% by the end of 2007, even as only 110 new rental units enter the market via new construction (all scheduled for the second half). Early reporting from Reis shows a third quarter rate of 7.3%. After slowing significantly during the last half of last year, rent growth fell negative during second quarter 2007, as losses of 0.5% for

Mall Investors, a company co-owned by the California Public Employees Retirement System (CalPERS) and Miller Capital Advisory Inc. According to local real estate sources, “the center fetched $150 million to $250 million, which would make it one of the biggest real estate deals in county history.” For retail properties changing hands over the 12-month span ending at mid-year, Reis reports an average capitalization rate and selling price of 7.5% and $261 psf.

• Industrial: “First Industrial Realty Trust has snapped up most of the former Palm Beach Park of Commerce in a deal that may jump-start industrial construction in Palm Beach County,” reported South Florida Business Journal in June. “The bellwether deal… gives the Chicago-based real estate developer control of 537 acres along the Beeline Highway in the northwestern reaches of the county.” “First Industrial plans to come out of the ground later this year with speculative distribution warehouses and other light industrial facilities for lease although the final plan is still being hammered out,” adds the report. While terms of the sale were not disclosed, sources report that the developer paid about $162 million, about $7 psf. “With industrial sites further south trading in the teens, the price is a value. The acquisition is part

Special Real Estate Factors: Continued


Metro: Palm Beach



5


both asking and effective averages dropped these rates to $1,110 and $1,049 per month. Growth rates for the year are forecast at 2.0% for both rent categories, well off the respective increases of 5.6% and 5.9% recorded for 2006. First Glance reporting from Reis shows a third quarter asking rent of $1,111 per month. Competition from the heavy condo supply and, to a lesser extent, slower job and population growth, are the chief causes of these trends. Indeed, condo projects continue to dominate Reis’s accounting of multifamily construction recently completed, under construction, planned and proposed. Fortunately, rental construction will remain subdued. With annual volumes increasing year by year, the few units forecast to deliver in 2007 will be followed by an annual average of only 675 units through the remainder of Reis’s five-year forecast period. Among significant projects underway as of mid-year is the 356-unit 500 Ocean Plaza condos in Boynton Beach, for which Reis cites an October completion date. Also in Boynton Beach, the 300-unit Monterey Bay townhomes complex is due on line in November 2008. As recently as August, GlobeSt.com reported the closing of a $137 million construction loan for a 52-unit condo project in Boca Raton. A spring 2009 completion is planned. Prices will range from $2.75 million to more than $15 million. Presales have been “significant,” states the report. • Marcus & Millichap reports third quarter 2007 Palm Beach County apartment

vacancy at 7.0%, up a full 170 basis points from a quarter earlier and up 220 over 12 months. The third quarter asking average rent is put at $1,119 per month, up 1.9% from a year earlier. The effective mean grew by 1.2% over the same period to close the quarter at $1,058.

Special Real Estate Factors: Continued

of a $1 billion joint-venture fund with the California State Teachers' Retirement System.”


Metro: Palm Beach



6


Palm Beach County Retail Supply and Demand Trends

-200

0

200

400

600

800

1000

92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11

Squa

re F

eet (

000'

s)

0%2%4%6%8%10%12%14%16%

Vacancy R

ate


RETAIL

With its high incomes, strong population growth and strong economic prospects, Palm Beach County remains fertile ground for retailers and retail real estate. While a mild excess of space delivered over space absorbed this year will result in a small increase in the vacancy rate for community and neighborhood center space, the level stays low. According to Reis’s forecast, 562,000 square feet will complete construction; 399,000 square feet will be absorbed. Reis puts second quarter vacancy at 5.0%, same as a quarter earlier, up 40 basis points since year end. An additional increase, but only to 5.2%, is projected for year-end 2007; while preliminary data from Reis indicate a rate of 5.7% for the third quarter. The power center market is tighter still. Reis reports 350,000 square feet under construction, all in the West Boca Commons project in Boca Raton due on line in October 2008. Another 475,000 square feet of additional power center space are planned. Power center vacancy at mid-year was 2.8%, up from 1.6% a year earlier. Other significant projects underway include the 400,000-square-foot retail portion of the mixed-use Boynton Town Center in Boynton Beach, due on line next June. “With its exploding population base,” reports CB Richard Ellis, “more retail product is expected to come on line in late 2007 or early 2008 to meet the demand of rapidly expanding communities.” This source reports 1.0 million square feet under construction at the close of second quarter—the largest shares, 411,000 and 389,000 square feet respectively, belonging to the Wellington-Royal Palm Beach and Boynton Beach-Lantana submarkets. Marcus & Millichap expects 1.5 million square feet to complete construction this year, down from more than 2.0 million in 2006. Asking and effective lease rates for community and neighborhood center space increased 7.9% and 7.7% last year, Reis reports. Respective gains of 4.8% and 4.4% are projected for 2007. Second quarter averages were $22.57 and $20.52 psf, each up 0.5% from a quarter earlier. Early


Metro: Palm Beach



7


Palm Beach County Industrial Supply and Demand Trends

-2000

200400600800

1,0001,2001,400

92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11

Squa

re F

eet (

000'

s)

0%

2%

4%

6%

8%

10%

12%

Vacancy R

ate


reporting from Reis shows an asking rent rate of $22.68 psf for third quarter. The second quarter mean rate for power center space was $21.76, up 5.9% year-over-year. • CB Richard Ellis reports overall second quarter retail vacancy at 4.01%, up from

3.11% a year earlier. The average triple-net lease rate is given as $22.78 psf, up from $21.54.

INDUSTRIAL

High-rent district. With high-tech and biotech industry playing significant roles in the local economy, the Palm Beach County industrial market offers a somewhat different profile than the other South Florida markets, with their warehouse/distribution orientations. In addition, its higher land and development costs tend to preclude development of lower-rent properties. Significant increases in construction delivery volumes of multi-tenant, non-manufacturing space in 2006 and 2007 have done, and will do, little to alter that sectors low vacancy profile. The 726,000 square feet that delivered in 2006 were accompanied by demand sufficiently strong enough to chop 60 basis points from the vacancy rate, which closed the year at 5.1%. The delivery of nearly 1 million square feet in 2007, most in a single year since 1986, will be met by strong net absorption at 804,000 square feet. Thus, the vacancy rate will rise, but only as high as 5.5%. A completion total nearly as great next year, moreover, will be surpassed by net absorption, driving the vacancy rate downward once again. By 2011, the final year of Reis’s five-year forecast period, vacancy should be running at 4.5%. Rent growth reflects the market’s tightness and its favorable supply and demand dynamics. Average asking and effective lease rates increased 6.4% and 6.7% last year. Respective increases of 4.3% and 3.9%, producing year-end averages of $6.57 and $6.44 psf, are projected for 2007.


Metro: Palm Beach



8


According to CB Richard Ellis, the 455,000 square feet that completed construction during third quarter were preleased at 46%. Space remaining underway at quarter’s end is counted at 759,300 square feet, the largest portions of which are found in West Palm Beach and Jupiter, site of the Scripps facility now under development. Construction, notes this source, is underway on land purchased prior to the recent acceleration of land prices that fell upon the entire region. “Demand is intense enough,” notes CB, “that developers are purchasing parcels in Martin and St. Lucie counties “where lower land prices make it feasible to assemble large competitively priced industrial parks.” Meanwhile, First Industrial Realty Trust has purchased a 537-acre site in northwest Palm Beach County with plans for 6.5 million square feet of industrial facilities of all types (see Special Real Estate Factors for more information). Despite the apparent vigor of the market, CB reports year-to-date net absorption at negative 721,300 square feet. With recent increases in operating expenses impacting tenant bottom line, comments this source, “tenants have begun to downsize and consolidate their industrial space requirements.”

• CB reports third quarter overall vacancy at 6.9%, up more or less steadily through recent quarters. Rates by property type are given as 6.0% for industrial and 9.1% for flex. Respective average asking rents of $10.92 and $8.45 psf combine to form an average of $9.69.

For additional metro and submarket level information on the top 80 markets for the four principal property types, visit www.reis.com or call Reis at: (800) 366-REIS.

Unless otherwise indicated, economic and demographic data provided by Moody’s Economy. com Publication Date October 2007 © 2007 Reis, Inc.

Sector 2Q07 2Q06 ChgOffice 10.3% 10.1% 20 bps

Multifamily 7.0% 4.2% 280 bpsRetail 5.0% 4.4% 60 bps

Industrial 5.1% 5.7% -60 bps

Vacancy

Sector ChgOffice $28.38 psf $25.77 psf 10.1%

Multifamily $1,110 month $1,097 month 1.2%Retail $22.57 psf $21.30 psf 6.0%

Industrial $6.30 psf $5.92 psf 6.4%

Rents2Q07 2Q06


Metro: Palm Beach


Metro Analysis

Retail - Asset Advisor 3rd Quarter 200711201 US Highway One North Palm Beach, FL 33408

Metro: Palm Beach


Section 1 - Current Metro Rent Details

Neighborhood Shopping Centers

Nonanchor Asking Rentby Age

Nonanchor Asking Rent Distribution Nonanchor Asking Rent Growth Rate Distribution

Year Built Rent

Before 1970 $20.49

1970-1979 $18.86

1980-1989 $21.27

1990-1999 $25.49

After 1999 $30.75

All $20.98

As of 09/30/07

Low 25% Mean Median 75% High

$12.15 $16.96 $20.98 $20.37 $25.83 $37.52

38 3742

28

9

19

7 8

Under$15.57

$15.58$18.82

$18.83$22.07

$22.08$25.32

$25.33$28.57

$28.58$31.82

$31.83$35.07

$35.08Over

Num

ber

of P

rope

rtie

s


- 3.3% 0.1% 0.6% 0.3% 2.0% 5.4%

60

16

110

41

3 6 6

Under- 2.7%

- 2.6%- 1.4%

- 1.3%- 0.1%

0.0%1.2%

1.3%2.5%

2.6%3.8%

3.9%5.1%

5.2%Over

Num

ber

of P

rope

rtie

s

22 Negative Growth 166Positive Growth

As of 09/30/07 Qtr Ending 09/30/07

Anchor Asking Rent DistributionLow 25% Mean Median 75% High

$ 6.69 $10.89 $13.92 $13.57 $16.81 $28.84

As of 09/30/07

Section 2 - Nonanchor Rent Growth Comparisons

Asking Rent Growth

Quarterly Annualized

3Q07 2Q07 YTD Avg 1 Year 3 Year 5 Year

Palm Beach 0.6% 1.1% 1.0% 7.0% 5.3% 4.5%

South Atlantic 0.6% 0.6% 0.7% 4.3% 3.8% 3.3%

United States 0.7% 0.9% 0.8% 4.0% 3.5% 3.2%Average over period ending: 09/30/07 06/30/07 09/30/07 12/31/06 12/31/06 12/31/06

Metro Rank Total Metro RanksCompared to: Metros

3Q07 2Q07 YTD 1 Year 3 Year 5 Year

South Atlantic 24 10 4 3 3 3 2United States 76 35 21 17 7 7 8

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q070.00.20.40.60.81.01.21.41.61.82.0

Quarterly Rent Growth Rate Trends

Palm Beach

US

South Atlantic

%

Period ending 09/30/07

2002 2003 2004 2005 20060.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Palm Beach

South Atlantic

US

Asking Rent Growth Rate Trends%



Metro: Palm Beach


Section 3 - Current Metro Rent Details

Community Shopping Centers



Year Built Rent

Before 1970 $28.70

1970-1979 $23.19

1980-1989 $26.36

1990-1999 $30.34

After 1999 $39.94

All $24.63

As of 09/30/07


$15.01 $20.50 $24.63 $25.73 $31.58 $62.69

45

12

6 6

9

67

Under$15.57

$15.58$18.82

$18.83$22.07

$22.08$25.32

$25.33$28.57

$28.58$31.82

$31.83$35.07

$35.08Over

Num

ber

of P

rope

rtie

s


- 1.7% 0.2% 0.1% 0.8% 2.1% 14.4%

2 1 1

30

16

0 0

5

Under- 2.7%

- 2.6%- 1.4%

- 1.3%- 0.1%

0.0%1.2%

1.3%2.5%

2.6%3.8%

3.9%5.1%

5.2%Over

Num

ber

of P

rope

rtie

s


As of 09/30/07 Qtr Ending 09/30/07


$ 6.92 $11.88 $16.64 $15.10 $20.62 $26.46

As of 09/30/07


Asking Rent Growth



Palm Beach 0.1% 0.0% 0.6% 8.6% 5.2% 4.9%

South Atlantic 0.4% 0.5% 0.6% 4.3% 3.6% 3.1%





1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q070.00.20.40.60.81.01.21.41.61.82.02.2


Palm Beach

US

South Atlantic

%


2002 2003 2004 2005 20060.0

2.0

4.0

6.0

8.0

Palm Beach

South Atlantic

US




Metro: Palm Beach


Section 5 - Current Metro Vacancy Details


Vacancy Rate By Age Vacancy Rate Distribution

Year Built Vac. Rate

Before 1970 8.2%

1970-1979 3.9%

1980-1989 7.6%

1990-1999 2.3%

After 1999 6.4%

All 5.6%

As of 09/30/07


0.0% 0.0% 5.6% 2.4% 7.5% 33.6%

107

35

189 5 3 4 7

Under3.9%

4.0%7.8%

7.9%11.7%

11.8%15.6%

15.7%19.5%

19.6%23.4%

23.5%27.3%

27.4%Over

Num

ber

of P

rope

rtie

s

As of 09/30/07

Section 6 - Vacancy Rate Comparisons

Vacancy Rates



Palm Beach 5.6% 4.9% 5.1% 5.0% 5.0% 5.4%

South Atlantic 7.2% 7.2% 7.2% 6.9% 6.6% 6.8%





1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07

4.85.05.25.45.65.86.06.26.46.66.87.07.27.47.67.8

Quarterly Vacancy Rates

Palm Beach

US

South Atlantic

%


2002 2003 2004 2005 2006

5.0

5.5

6.0

6.5

7.0Palm Beach

South Atlantic

US

Vacancy Rate Trends%



Metro: Palm Beach


Section 7 - Current Metro Vacancy Details




Before 1970 12.9%

1970-1979 9.2%

1980-1989 8.0%

1990-1999 1.3%

After 1999 9.6%

All 5.7%

As of 09/30/07


0.0% 0.9% 5.7% 5.8% 11.2% 31.5%

29

12

5

1 20 1

5

Under3.9%

4.0%7.8%

7.9%11.7%

11.8%15.6%

15.7%19.5%

19.6%23.4%

23.5%27.3%

27.4%Over

Num

ber

of P

rope

rtie

s

As of 09/30/07


Vacancy Rates



Palm Beach 5.7% 5.2% 5.4% 4.5% 4.5% 5.4%

South Atlantic 6.3% 6.3% 6.3% 6.4% 7.1% 7.3%





1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07

4.04.24.44.64.85.05.25.45.65.86.06.26.46.66.8


Palm Beach

US

South Atlantic

%


2002 2003 2004 2005 2006

4.0

5.0

6.0

7.0

8.0

Palm Beach

South Atlantic

US




Metro: Palm Beach


Section 9 - Nonanchor Rent Growth Comparisons and Forecast

Neighborhood and Community Shopping Centers

Asking Rent Growth


3Q07 2Q07 YTD Avg 1 Year 3 Year 5 Year 5 Yr Forecast

Palm Beach 0.5% 0.5% 0.8% 7.9% 5.3% 4.7% 4.2%

South Atlantic 0.5% 0.6% 0.7% 4.3% 3.7% 3.2% 3.3%

United States 0.6% 0.8% 0.8% 3.8% 3.3% 3.0% 3.4%Average over period ending: 09/30/07 06/30/07 09/30/07 12/31/06 12/31/06 12/31/06 12/31/11


3Q07 2Q07 YTD 1 Year 3 Year 5 Year 5 Yr Forecast

South Atlantic 24 12 9 5 1 3 2 1United States 76 38 34 20 2 5 6 6

2002 2003 2004 2005 2006 2007 2008 2009 2010 20110.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Palm Beach

South Atlantic

US

Asking Rent Growth Rate Trends and Forecast%


Section 10 - Vacancy Rate Comparisons and Forecast

Vacancy Rates



Palm Beach 5.7% 5.0% 5.2% 4.8% 4.8% 5.4% 5.3%

South Atlantic 6.8% 6.8% 6.7% 6.7% 6.9% 7.1% 7.0%





2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

4.5

5.0

5.5

6.0

6.5

7.0

7.5

Palm Beach

South Atlantic

US

Vacancy Rate Trends and Forecast%



Metro: Palm Beach


Section 11 - Metro Inventory Detail


Inventory By Center Age Shopping Center Stock Traits

Year Built Percent

Before 1970 10.4%

1970-1979 13.9%

1980-1989 51.0%

1990-1999 12.2%

After 1999 12.6%

All 100.0%

As of 09/30/07

MetroLow Mean Median High

Year Built 1956 1985 1986 2006Size (sq. ft.) 9,618 98,096 80,789 338,100

Distance to Highway (miles) 0 0.90 0.70 6.10Distance to CBD (miles) 0.90 12.70 11.10 27.60

Distance to Landmark (miles) 0.20 4.70 4.30 16.40As of 09/30/07 Landmark =Coast

Current Inventory Level

Properties Square Feet

243 25,471,000

As of 09/30/07Average Metro Lease Terms

Anchor/Nonanchor CRD % Free Rent

(mos)Expenses $

(Commercial)Lease Term

(yrs)Leasing

Commission %Tenant

Improvements $A - 4.9% 3.3 $ 3.07 11.7 3.1% $ 7.81N - 5.3% 2.3 $ 3.11 4.4 3.1% $ 5.81

Section 12 - Inventory Growth Comparison


Inventory Growth Rates



Palm Beach 1.6% 0.0% 0.5% 1.5% 2.1% 2.1% 1.5%

South Atlantic 0.4% 0.3% 0.4% 1.5% 1.9% 1.9% 1.6%





2002 2003 2004 2005 2006 2007 2008 2009 2010 20110.0

0.5

1.0

1.5

2.0

2.5

Palm Beach

South Atlantic

US

Inventory Growth Comparisons and Forecast%



Metro: Palm Beach


Section 13 - Construction/Absorption Change


Construction and Absorption

Quarterly

3Q07 2Q07 YTD Avg

Sq Ft Built Sq FtAbsorbed

Con/AbsRatio Sq Ft Built Sq Ft

AbsorbedCon/Abs

Ratio Sq Ft Built Sq FtAbsorbed

Con/AbsRatio

Palm Beach 399,000 213,000 1.9 0 -8,000 0.0 133,000 36,000 3.7

South Atlantic 2,213,000 2,197,000 1.0 1,685,000 932,000 1.8 2,040,000 1,612,000 1.3Average over period ending: 09/30/07 09/30/07 09/30/07 06/30/07 06/30/07 06/30/07 09/30/07 09/30/07 09/30/07


Annualized

1 Year History 3 Year History 5 Year History



AbsorbedCon/Abs


Con/AbsRatio

Palm Beach 370,000 429,000 0.9 498,333 526,667 0.9 488,200 578,200 0.8

South Atlantic 7,974,000 8,266,000 1.0 10,161,333 10,616,000 1.0 9,955,000 10,141,800 1.0Average over period ending: 12/31/06 12/31/06 12/31/06 12/31/06 12/31/06 12/31/06 12/31/06 12/31/06 12/31/06


Annualized

5 Year Forecast


Con/AbsRatio

Palm Beach 401,000 381,000 1.1

South Atlantic 9,077,000 8,266,000 1.1Average over period ending: 12/31/11 12/31/11 12/31/11

0

200,000

400,000

600,000

800,000

Squ

are

Fee

t

2002 2003 2004 2005 2006 2007 2008 2009 2010 20110

2

4

6

Vac

ancy

Rat

e (%

)Construction/Absorption and Vacancy

Vacancy Rate Construction Absorption



Metro: Palm Beach


Section 14 - Construction Deliveries

Completed SF SF Under Construction Totals 2008 2009 2010

Neighborhood 93,132 21,000 0 152,306 266,438 0 0 0Community 277,023 399,000 0 350,000 1,026,023 0 0 0

Power Center 0 348,000 0 350,000 698,000 0 0 0Regional 0 0 0 0 0 0 0 0

Mixed Use 42,400 220,000 0 400,000 662,400 150,000 0 150,000Other 0 3,300 0 0 3,300 0 0 0Totals 412,555 991,300 0 1,252,306 2,656,161 150,000 0 150,000

10.3 %

33.3 %

28.1 %

28.3 %

0.1 %

Metro Construction by Project Type 2006 - 2012

NeighborhoodCommunityPowerRegionalMixed UseOther

35.8 %

23.3 %

23.1 %

17.8 %

Metro Construction by Top Five Submarkets Share 2006 - 2012

Boca RatonN Palm Beach/JupiterBoynton BeachWest Palm Beach

Section 15 - Submarket New Construction Project Tally

1. Completed 2. Under Construction 3. Planned/Proposed

Submarket Neigh/Comm

Power/Reg. Other Neigh/

CommPower/Reg. Other Neigh/

CommPower/Reg. Other Grand

Total

Boca Raton 247,023 0 3,300 350,000 350,000 0 0 0 0 950,323

N Palm Beach/Jupiter 399,000 0 220,000 0 0 0 0 0 0 619,000

Boynton Beach 144,132 0 42,400 27,306 0 400,000 0 0 0 613,838

West Palm Beach 0 348,000 0 125,000 0 0 0 0 0 473,000

Non-Submarketed Areas 0 0 0 0 0 0 0 0 150,000 150,000


Metro: Palm Beach


Section 16 - Metro Inventory Detail

Inventory By Center Age

Year Built Percent

Before 1970 10.4%

1970-1979 13.9%

1980-1989 51.0%

1990-1999 12.2%

After 1999 12.6%

All 100.0%

As of 09/30/07

2002 2003 2004 2005 2006 2007 2008 2009 2010 20110.0

0.5

1.0

1.5

2.0

2.5

Palm Beach

South Atlantic

US

Market Rate Rental Inventory Growth Trend and Forecast%



243 25,471,000

As of 09/30/07

South Atlantic Region Cumulative Inventory Growth Forecast Ranking 2007 - 2012 National Cumulative Inventory Growth Forecast Ranking 2007 - 2012

Metro Cumulative Growth Forecast Rank Metro Cumulative Growth Forecast RankRaleigh-Durham 14.6% 1

Suburban Virginia 8.4% 9

Atlanta 8.1% 10

Palm Beach 8.0% 11

Jacksonville 8.0% 12

Columbia 7.9% 13

Baltimore 3.5% 24

Raleigh-Durham 14.6% 1

San Antonio 8.2% 28

Atlanta 8.1% 29

Palm Beach 8.0% 30

Tacoma 8.0% 33

Los Angeles 8.0% 31

Little Rock 2.8% 76



Quarterly

3Q07 2Q07 YTD Avg



AbsorbedCon/Abs


Con/AbsRatio

Palm Beach 399,000 213,000 1.9 0 -8,000 0.0 133,000 36,000 3.7

South Atlantic 2,213,000 2,197,000 1.0 1,685,000 932,000 1.8 2,040,000 1,612,000 1.3Average over period ending: 09/30/07 09/30/07 09/30/07 06/30/07 06/30/07 06/30/07 09/30/07 09/30/07 09/30/07

Annualized




AbsorbedCon/Abs


Con/AbsRatio

Palm Beach 370,000 429,000 0.9 498,333 526,667 0.9 488,200 578,200 0.8

South Atlantic 7,974,000 8,266,000 1.0 10,161,333 10,616,000 1.0 9,955,000 10,141,800 1.0Average over period ending: 12/31/06 12/31/06 12/31/06 12/31/06 12/31/06 12/31/06 12/31/06 12/31/06 12/31/06


Metro: Palm Beach


Section 18 - Occupancy at Completion

0

20

40

60

80

100

Occ

upan

cy (

%)

2001 2002 2003 2004 2005 2006 2007

Occupancy at Completion Comparisons

Palm Beach Overall Occupancy Palm Beach Occupancy at Completion South Atlantic Occupancy at Completion US Occupancy at Completion

Occupancy at Completion ComparisonsProperties Built in: 2001 2002 2003 2004 2005 2006 2007

Palm Beach 62.2% 94.5% 92.2% 87.4% 82.5% 79.7% 0.0%South Atlantic 78.5% 85.0% 84.2% 83.4% 82.0% 79.8% 75.6%United States 78.0% 80.4% 81.8% 82.8% 79.9% 79.7% 71.8%*Occupation at completion is calculated for all properties completed during each individual calendar year

Section 19 - Stabilization Data

0 1 2 3 4 5 6 7 80.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

2001 2002 2003 2004 2005 2006 2007 Long Term Metro Vacancy Average

New Construction Quarters to Stabilization

Quarters After Completion

Vac

ancy

(%

)

%

Lease-up: Average Vacancy by Quarter After CompletionProperties Built in: 2001 2002 2003 2004 2005 2006 2007

0 Quarter(s) after Completion 37.8% 5.5% 7.8% 12.6% 17.5% 20.3% 0.0%1 Quarter(s) after Completion 19.9% 8.1% 7.0% 11.5% 16.0% 18.1% 0.0%2 Quarter(s) after Completion 9.9% 5.6% 5.5% 10.4% 10.3% 14.2% 0.0%3 Quarter(s) after Completion 8.1% 3.2% 4.0% 7.5% 12.8% 20.5% 0.0%4 Quarter(s) after Completion 7.0% 3.3% 3.3% 6.7% 16.0% 0.0% 0.0%5 Quarter(s) after Completion 2.9% 3.6% 3.8% 6.7% 18.5% 0.0% 0.0%6 Quarter(s) after Completion 2.8% 0.6% 5.5% 1.2% 18.4% 0.0% 0.0%7 Quarter(s) after Completion 3.1% 0.0% 4.6% 1.3% 15.6% 0.0% 0.0%8 Quarter(s) after Completion 2.1% 0.0% 3.2% 2.1% 0.0% 0.0% 0.0%

Quarters Needed to Stabilize 4 0 1 3 n/a n/a n/aStabilization is reached when the average vacancy of the properties built in any given year equals or is less than the metro's average overall vacancy forthe last five years. "0" in the Quarters After Completion chart above represents the vacancy at completion.


Metro: Palm Beach


Section 20 - New Construction Listing


No. Property Name and Address Date AsOf Secondary Type County Size (Sq Ft) Est.

GroundbreakEst.

Completion Status

Submarket:Boca Raton

1WEST BOCA COMMONSHWY 441 @ CLOUD CIR BOCA RATON, FL33498

10-17-2007 Power Center PALM BEACH 350,000 10/2008UnderConstr.

2CAMINO GARDENS OUTPARCEL1001 SW 2ND AVE @ CAMINO REAL BOCARATON, FL 33432

10-11-2007 Free Standing PALM BEACH 3,300 9/2007 Complete

3VERDECLINT MOORE RD @ HWY 441 BOCA RATON,FL 33496

08-22-2007 Community PALM BEACH 350,000 9/2009UnderConstr.

4DELRAY MARKETPLACEATLANTIC AVE @ LYONS RD DELRAY BEACH,FL 33446

06-30-2007 Community PALM BEACH 247,023 1/2006 Complete

Submarket:Boynton Beach

5ANTHONY GROVES PLAZAANTHONY GROVES RD @ US 441 WEST PALMBEACH, FL 33414

10-26-2007 Neighborhood PALM BEACH 21,000 11/2007 Complete

6BOYNTON TOWN CENTER RETAILN CONGRESS AVE @ OLD BOYNTON RDBOYNTON BEACH, FL 33426

08-07-2007 Mixed Use PALM BEACH 400,000 6/2008UnderConstr.

7WELLINGTON GREEN COMMONSUS 441 @ FOREST HILLS BLVD WELLINGTON,FL 33414

06-30-2007 Community PALM BEACH 115,000 Planned

8PALM SPRINGS PLAZA PH IVCONGRESS AVE @ 10TH AVE N LAKE WORTH,FL 33461


9SEACREST VILLAGE RETAILSEACREST BLVD @ FEDERAL HWY BOYNTONBEACH, FL 33435

06-30-2007 Mixed Use PALM BEACH 75,000 Planned

10PALM SPRINGS PLAZA PH IIICONGRESS AVE @ 10TH AVE N LAKE WORTH,FL 33461

06-30-2007 Community PALM BEACH 30,000 12/2005 9/2006 Complete

11WELLINGTON GREEN SQUARE10600 W FOREST HILLS BLVD @ US 441WELLINGTON, FL 33414

06-30-2007 Neighborhood PALM BEACH 93,132 11/2004 4/2006 Complete

12SHOPS AT RENAISSANCE COMMONS1750-1790 N CONGRESS AVE @ GATEWAYBLVD BOYNTON BEACH, FL 33426

06-30-2007 Mixed Use PALM BEACH 42,400 2/2004 4/2006 Complete

13SHERBROOKE PLAZA8844 LANTANA RD @ LYONS RD/AQUARIUSBLVD LAKE WORTH, FL 33467

06-30-2007 Neighborhood PALM BEACH 27,306 10/2006 8/2008UnderConstr.

Submarket:N Palm Beach/Jupiter

14 RETAIL AT MIDTOWNPGA BLVD @ I-95 PALM BEACH, FL 33410

10-25-2007 Mixed Use PALM BEACH 96,000 8/2006 11/2007 Complete


Metro: Palm Beach


No. Property Name and Address Date AsOf Secondary Type County Size (Sq Ft) Est.

GroundbreakEst.

Completion Status

15THE SHOPPES AT JUPITER FALLS201 N US HWY 1 @ E INDIANTOWN RDJUPITER, FL 33477

10-16-2007 Power Center PALM BEACH 502,000 Planned

16LEGACY PLACE-RETAIL11380 LEGACY AVE @ PGA BLVD PALM BEACHGARDENS, FL 33410

09-13-2007 Community PALM BEACH 399,000 12/2004 8/2007 Complete

17NORTHLAKE PROMENADE PH II374 NORTHLAKE BLVD @ US 1 LAKE PARK, FL33408


18DONALD ROSS VILLAGE4540 MILITARY TRAIL @ DONALD ROSS RDPALM BEACH GARDENS, FL 33410

06-30-2007 Mixed Use PALM BEACH 124,000 5/2007 Complete

Submarket:Not in a Reis submarket

19CANYON TOWN CENTERBOYNTON BEACH BLVD @ LYONS RDBOYNTON BEACH, FL 33437

06-30-2007 Mixed Use PALM BEACH 150,000 12/2008 Planned

Submarket:West Palm Beach

20SHOPPES OF BELVEDERESEC BELVEDERE RD @ SANSBURY WAY/I-95WEST PALM BEACH, FL 33411

10-11-2007 Neighborhood PALM BEACH 50,000 Planned

21CYPRESS KEY TOWN CENTERSOUTHERN BLVD @ CRESTWOOD BLVD/WFORES ROYAL PALM BEACH, FL 33411

06-30-2007 Neighborhood PALM BEACH 125,000 6/2007 6/2008UnderConstr.

22SOUTHERN PALM CROSSINGSOUTHERN BLVD @ LAMSTEIN LN/ROYALPALM ROYAL PALM BEACH, FL 33411

06-30-2007 Power Center PALM BEACH 348,000 9/2005 3/2007 Complete


Metro: Palm Beach


Section 21 - Submarket Snapshot

Submarket Anchor/Nonanchor

Inventory(Buildings)

Inventory(Sq Ft)

AskingRent $ CRD % Vac

%

FreeRent(mos)

Expenses $(Commercial)

LeaseTerm(yrs)

LeasingCommission

%

TenantImprovements

$

West Palm Beach A 30 2,069,000 $13.54 - 6.2% 0.4% 3.2 $ 3.20 12.9 3.2% $ 7.82

West Palm Beach N 43 2,283,000 $19.80 - 6.1% 5.7% 2.3 $ 2.86 4.3 2.9% $ 5.00

Boynton Beach A 65 4,367,000 $11.26 - 4.9% 7.0% 3.2 $ 3.02 10.9 3.0% $ 4.93

Boynton Beach N 89 5,248,000 $21.50 - 5.1% 6.3% 2.4 $ 3.13 4.2 3.1% $ 5.82

Boca Raton A 40 2,777,000 $15.25 - 4.0% 2.5% 2.8 $ 2.77 10.9 2.8% $ 7.91

Boca Raton N 69 4,068,000 $26.79 - 4.6% 5.7% 2.3 $ 3.00 4.8 3.0% $ 5.69

N PalmBeach/Jupiter A 29 2,096,000 $17.60 - 4.9% 8.4% 4.1 $ 3.43 13.3 3.4% $13.69

N PalmBeach/Jupiter N 42 2,563,000 $21.77 - 5.9% 7.9% 2.2 $ 3.45 4.2 3.4% $ 6.70


Metro: Palm Beach


Section 22 - Economic and Demographic Trends

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Palm Beach South Atlantic US

Household Income Growth Trends Metro vs. Region & U.S.

Per

cent

age

Cha

nge

Provided by Economy.com, Period ending 12/31/11

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

0.0%

1.0%

2.0%

3.0%

4.0%

Palm Beach South Atlantic US

Total Employment Growth Trends Metro vs. Region & U.S.

Per

cent

age

Cha

nge


2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

1.5%

2.0%

2.5%

3.0%

Population Households

Palm Beach Population/Household Growth Trends

Per

cent

age

Cha

nge



Metro: Palm Beach


Section 23 - Metro Area - Palm Beach

Palm Beach Submarkets

1 West Palm Beach 2 Boynton Beach 3 Boca Raton

4 North Palm Beach/Jupiter


Metro: Palm Beach


Section 24 - Metro Data


Year Qtr InventorySF/Units Completions Inventory

Growth% Vacant Stock VacancyRate

VacancyChange(%)

OccupiedStock

NetAbsorption Asking Rent Ask Rent %

Chg

2002 Y 12,344,000 189,000 1.6% 743,000 6.0% - 0.7% 11,601,000 262,000 $16.62 1.7%

2003 Y 12,946,000 602,000 4.9% 675,000 5.2% - 0.8% 12,271,000 670,000 $17.43 4.9%

2004 Y 13,279,000 333,000 2.6% 608,000 4.6% - 0.6% 12,671,000 400,000 $18.33 5.2%

2005 4 13,484,000 88,000 0.7% 715,000 5.3% 0.5% 12,769,000 10,000 $19.02 1.9%

2005 Y 13,484,000 205,000 1.5% 715,000 5.3% 0.7% 12,769,000 98,000 $19.02 3.8%

2006 1 13,484,000 0 0.0% 713,000 5.3% 0.0% 12,771,000 2,000 $19.28 1.4%

2006 2 13,577,000 93,000 0.7% 661,000 4.9% - 0.4% 12,916,000 145,000 $19.63 1.8%

2006 3 13,577,000 0 0.0% 678,000 5.0% 0.1% 12,899,000 -17,000 $20.02 2.0%

2006 4 13,577,000 0 0.0% 644,000 4.7% - 0.3% 12,933,000 34,000 $20.36 1.7%

2006 Y 13,577,000 93,000 0.7% 644,000 4.7% - 0.6% 12,933,000 164,000 $20.36 7.0%

2007 1 13,577,000 0 0.0% 662,000 4.9% 0.2% 12,915,000 -18,000 $20.63 1.3%

2007 2 13,577,000 0 0.0% 666,000 4.9% 0.0% 12,911,000 -4,000 $20.85 1.1%

2007 3 13,577,000 0 0.0% 767,000 5.6% 0.7% 12,810,000 -101,000 $20.98 0.6%

Year Qtr EffectiveRent

Eff Rent %Chg Cons/Abs Abs/Occ

Stock% Population Pop%Chg Employment Emp%

Chg Households HH%Chg

Avg HHIncome

AHHI%Chg

2002 Y $15.25 0.7% 0.7 2.3% 1,198,840 2.2% 526,070 1.6% 502,380 2.2% $104,276 0.1%

2003 Y $15.90 4.3% 0.9 5.5% 1,226,020 2.3% 533,730 1.5% 513,660 2.2% $106,337 2.0%

2004 Y $16.75 5.3% 0.8 3.2% 1,255,130 2.4% 557,670 4.5% 525,740 2.4% $119,496 12.4%

2005 4 $17.31 1.6% 8.8 0.1% 1,271,380 0.2% 577,800 0.2% 532,500 0.2% $122,386 0.9%

2005 Y $17.31 3.3% 2.1 0.8% 1,271,380 1.3% 577,800 3.6% 532,500 1.3% $122,386 2.4%

2006 1 $17.54 1.3% 0.0 0.0% 1,273,170 0.1% 583,030 0.9% 533,250 0.1% $125,531 2.6%

2006 2 $17.90 2.1% 0.6 1.1% 1,274,010 0.1% 585,770 0.5% 533,610 0.1% $126,929 1.1%

2006 3 $18.23 1.8% 0.0 - 0.1% 1,282,660 0.7% 585,870 0.0% 536,570 0.6% $128,425 1.2%

2006 4 $18.49 1.4% 0.0 0.3% 1,291,710 0.7% 586,870 0.2% 539,740 0.6% $129,094 0.5%

2006 Y $18.49 6.8% 0.6 1.3% 1,291,710 1.6% 586,870 1.6% 539,740 1.4% $129,094 5.5%

2007 1 $18.74 1.4% 0.0 - 0.1% 1,299,680 0.6% 593,130 1.1% 542,890 0.6% $131,652 2.0%

2007 2 $18.93 1.0% 0.0 0.0% 1,307,240 0.6% 597,930 0.8% 545,640 0.5% $132,991 1.0%

2007 3 $18.98 0.3% 0.0 - 0.8% 1,314,920 0.6% 600,410 0.4% 548,250 0.5% $133,877 0.7%


Metro: Palm Beach






VacancyChange(%)

OccupiedStock


Chg

2002 Y 10,613,000 137,000 1.3% 759,000 7.2% - 0.4% 9,854,000 171,000 $19.79 3.9%

2003 Y 10,631,000 18,000 0.2% 569,000 5.4% - 1.8% 10,062,000 208,000 $20.79 5.1%

2004 Y 10,816,000 185,000 1.7% 404,000 3.7% - 1.7% 10,412,000 350,000 $21.63 4.0%

2005 4 11,218,000 338,000 3.1% 503,000 4.5% 0.9% 10,715,000 222,000 $22.28 1.7%

2005 Y 11,218,000 402,000 3.7% 503,000 4.5% 0.8% 10,715,000 303,000 $22.28 3.0%

2006 1 11,465,000 247,000 2.2% 488,000 4.3% - 0.2% 10,977,000 262,000 $22.77 2.2%

2006 2 11,465,000 0 0.0% 450,000 3.9% - 0.4% 11,015,000 38,000 $23.27 2.2%

2006 3 11,495,000 30,000 0.3% 500,000 4.3% 0.4% 10,995,000 -20,000 $23.71 1.9%

2006 4 11,495,000 0 0.0% 515,000 4.5% 0.2% 10,980,000 -15,000 $24.20 2.1%

2006 Y 11,495,000 277,000 2.5% 515,000 4.5% 0.0% 10,980,000 265,000 $24.20 8.6%

2007 1 11,495,000 0 0.0% 593,000 5.2% 0.7% 10,902,000 -78,000 $24.59 1.6%

2007 2 11,495,000 0 0.0% 597,000 5.2% 0.0% 10,898,000 -4,000 $24.60 0.0%

2007 3 11,894,000 399,000 3.5% 682,000 5.7% 0.5% 11,212,000 314,000 $24.63 0.1%





Avg HHIncome

AHHI%Chg

2002 Y $18.20 3.1% 0.8 1.7% 1,198,840 2.2% 526,070 1.6% 502,380 2.2% $104,276 0.1%

2003 Y $18.96 4.2% 0.1 2.1% 1,226,020 2.3% 533,730 1.5% 513,660 2.2% $106,337 2.0%

2004 Y $19.77 4.3% 0.5 3.4% 1,255,130 2.4% 557,670 4.5% 525,740 2.4% $119,496 12.4%

2005 4 $20.30 1.6% 1.5 2.1% 1,271,380 0.2% 577,800 0.2% 532,500 0.2% $122,386 0.9%

2005 Y $20.30 2.7% 1.3 2.8% 1,271,380 1.3% 577,800 3.6% 532,500 1.3% $122,386 2.4%

2006 1 $20.74 2.2% 0.9 2.4% 1,273,170 0.1% 583,030 0.9% 533,250 0.1% $125,531 2.6%

2006 2 $21.25 2.5% 0.0 0.3% 1,274,010 0.1% 585,770 0.5% 533,610 0.1% $126,929 1.1%

2006 3 $21.63 1.8% -1.5 - 0.2% 1,282,660 0.7% 585,870 0.0% 536,570 0.6% $128,425 1.2%

2006 4 $22.02 1.8% 0.0 - 0.1% 1,291,710 0.7% 586,870 0.2% 539,740 0.6% $129,094 0.5%

2006 Y $22.02 8.5% 1.0 2.4% 1,291,710 1.6% 586,870 1.6% 539,740 1.4% $129,094 5.5%

2007 1 $22.38 1.6% 0.0 - 0.7% 1,299,680 0.6% 593,130 1.1% 542,890 0.6% $131,652 2.0%

2007 2 $22.39 0.0% 0.0 0.0% 1,307,240 0.6% 597,930 0.8% 545,640 0.5% $132,991 1.0%

2007 3 $22.33 - 0.3% 1.3 2.8% 1,314,920 0.6% 600,410 0.4% 548,250 0.5% $133,877 0.7%


Metro: Palm Beach






VacancyChange(%)

OccupiedStock


Chg

2002 Y 22,957,000 326,000 1.4% 1,502,000 6.5% - 0.6% 21,455,000 433,000 $18.09 2.8%

2003 Y 23,577,000 620,000 2.7% 1,244,000 5.3% - 1.2% 22,333,000 878,000 $18.95 4.8%

2004 Y 24,095,000 518,000 2.2% 1,012,000 4.2% - 1.1% 23,083,000 750,000 $19.81 4.5%

2005 4 24,702,000 426,000 1.8% 1,218,000 4.9% 0.7% 23,484,000 232,000 $20.50 1.9%

2005 Y 24,702,000 607,000 2.5% 1,218,000 4.9% 0.7% 23,484,000 401,000 $20.50 3.5%

2006 1 24,949,000 247,000 1.0% 1,201,000 4.8% - 0.1% 23,748,000 264,000 $20.88 1.9%

2006 2 25,042,000 93,000 0.4% 1,111,000 4.4% - 0.4% 23,931,000 183,000 $21.30 2.0%

2006 3 25,072,000 30,000 0.1% 1,178,000 4.7% 0.3% 23,894,000 -37,000 $21.71 1.9%

2006 4 25,072,000 0 0.0% 1,159,000 4.6% - 0.1% 23,913,000 19,000 $22.12 1.9%

2006 Y 25,072,000 370,000 1.5% 1,159,000 4.6% - 0.3% 23,913,000 429,000 $22.12 7.9%

2007 1 25,072,000 0 0.0% 1,255,000 5.0% 0.4% 23,817,000 -96,000 $22.45 1.5%

2007 2 25,072,000 0 0.0% 1,263,000 5.0% 0.0% 23,809,000 -8,000 $22.57 0.5%

2007 3 25,471,000 399,000 1.6% 1,449,000 5.7% 0.7% 24,022,000 213,000 $22.68 0.5%

2007 Y 25,572,000 500,000 2.0% 1,459,000 5.7% 1.1% 24,113,000 200,000 $22.93 3.7%

2008 Y 25,772,000 200,000 0.8% 1,420,000 5.5% - 0.2% 24,352,000 239,000 $23.89 4.2%

2009 Y 26,359,000 587,000 2.3% 1,486,000 5.6% 0.1% 24,873,000 521,000 $24.98 4.6%

2010 Y 26,717,000 358,000 1.4% 1,375,000 5.1% - 0.5% 25,342,000 469,000 $26.10 4.5%

2011 Y 27,075,000 358,000 1.3% 1,255,000 4.6% - 0.5% 25,820,000 478,000 $27.23 4.3%





Avg HHIncome

AHHI%Chg

2002 Y $16.62 1.9% 0.8 2.0% 1,198,840 2.2% 526,070 1.6% 502,380 2.2% $104,276 0.1%

2003 Y $17.28 4.0% 0.7 3.9% 1,226,020 2.3% 533,730 1.5% 513,660 2.2% $106,337 2.0%

2004 Y $18.11 4.8% 0.7 3.2% 1,255,130 2.4% 557,670 4.5% 525,740 2.4% $119,496 12.4%

2005 4 $18.67 1.7% 1.8 1.0% 1,271,380 0.2% 577,800 0.2% 532,500 0.2% $122,386 0.9%

2005 Y $18.67 3.1% 1.5 1.7% 1,271,380 1.3% 577,800 3.6% 532,500 1.3% $122,386 2.4%

2006 1 $19.01 1.8% 0.9 1.1% 1,273,170 0.1% 583,030 0.9% 533,250 0.1% $125,531 2.6%

2006 2 $19.43 2.2% 0.5 0.8% 1,274,010 0.1% 585,770 0.5% 533,610 0.1% $126,929 1.1%

2006 3 $19.79 1.9% -0.8 - 0.2% 1,282,660 0.7% 585,870 0.0% 536,570 0.6% $128,425 1.2%

2006 4 $20.11 1.6% 0.0 0.1% 1,291,710 0.7% 586,870 0.2% 539,740 0.6% $129,094 0.5%

2006 Y $20.11 7.7% 0.9 1.8% 1,291,710 1.6% 586,870 1.6% 539,740 1.4% $129,094 5.5%

2007 1 $20.41 1.5% 0.0 - 0.4% 1,299,680 0.6% 593,130 1.1% 542,890 0.6% $131,652 2.0%

2007 2 $20.52 0.5% 0.0 0.0% 1,307,240 0.6% 597,930 0.8% 545,640 0.5% $132,991 1.0%

2007 3 $20.54 0.1% 1.9 0.9% 1,314,920 0.6% 600,410 0.4% 548,250 0.5% $133,877 0.7%

2007 Y $20.74 3.1% 2.5 0.8% 1,322,900 2.4% 602,690 2.7% 550,960 2.1% $134,841 4.5%

2008 Y $21.57 4.0% 0.8 1.0% 1,355,430 2.5% 613,150 1.7% 562,540 2.1% $139,233 3.3%

2009 Y $22.57 4.6% 1.1 2.1% 1,392,250 2.7% 628,380 2.5% 576,160 2.4% $144,540 3.8%

2010 Y $23.73 5.1% 0.8 1.9% 1,432,600 2.9% 643,500 2.4% 591,420 2.6% $150,018 3.8%

2011 Y $24.81 4.6% 0.7 1.9% 1,475,830 3.0% 657,930 2.2% 607,940 2.8% $155,272 3.5%

Submarket Analysis


Metro: Palm Beach Submarket: N Palm Beach/Jupiter


Section 27 - Current Submarket Rent Details




Year Built Rent

Before 1970 $17.52

1970-1979 $21.09

1980-1989 $19.60

1990-1999 $23.00

After 1999 $31.63

All $19.66

As of 09/30/07


$ 9.65 $17.35 $19.66 $19.78 $23.14 $36.62

14

11

3

10 0 0 0

Under$19.22

$19.23$25.43

$25.44$31.64

$31.65$37.85

$37.86$44.06

$44.07$50.27

$50.28$56.48

$56.49Over

Num

ber

of P

rope

rtie

s


0.1% 0.2% - 0.3% 0.2% 0.3% 5.0%

0 0 0 0 0 1

25

3

Under-13.1%

-13.0%-10.5%

-10.4%- 7.9%

- 7.8%- 5.3%

- 5.2%- 2.7%

- 2.6%- 0.1%

0.0%2.5%

2.6%Over

Num

ber

of P

rope

rtie

s


As of 09/30/07 Qtr Ending 09/30/07


$ 6.98 $11.20 $14.64 $14.94 $17.11 $20.00

As of 09/30/07


Asking Rent Growth



N Palm Beach/Jupiter - 0.3% 1.2% 0.8% 5.0% 4.4% 3.6%

Palm Beach 0.6% 1.1% 1.0% 7.0% 5.3% 4.5%

South Atlantic 0.6% 0.6% 0.7% 4.3% 3.8% 3.3%


Submarket Rank Total Submarket RanksCompared to: Subs


Palm Beach 4 4 2 2 4 4 4South Atlantic 108 94 27 39 47 36 39United States 371 310 121 162 116 92 116

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07

-0.20.00.20.40.60.81.01.21.41.61.82.02.22.42.62.8


N Palm Beach/Jupiter

Palm Beach

US

South Atlantic

%


2002 2003 2004 2005 2006

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0


Palm Beach

South Atlantic

US






Section 29 - Current Submarket Rent Details




Year Built Rent

Before 1970 $ 0.00

1970-1979 $29.65

1980-1989 $24.27

1990-1999 $ 0.00

After 1999 $64.60

All $23.45

As of 09/30/07


$17.46 $22.89 $23.45 $27.01 $32.03 $62.69

1

5

4

2

0 0 0

1

Under$19.22

$19.23$25.43

$25.44$31.64

$31.65$37.85

$37.86$44.06

$44.07$50.27

$50.28$56.48

$56.49Over

Num

ber

of P

rope

rtie

s


-14.2% 0.2% - 1.1% 0.2% 0.3% 6.8%

10 0 0 0 0

11

1

Under-13.1%

-13.0%-10.5%

-10.4%- 7.9%

- 7.8%- 5.3%

- 5.2%- 2.7%

- 2.6%- 0.1%

0.0%2.5%

2.6%Over

Num

ber

of P

rope

rtie

s


As of 09/30/07 Qtr Ending 09/30/07


$10.00 $12.00 $19.56 $16.92 $18.61 $42.36

As of 09/30/07


Asking Rent Growth



N Palm Beach/Jupiter - 1.1% - 1.0% - 0.3% 9.7% 6.0% 5.6%

Palm Beach 0.1% 0.0% 0.6% 8.6% 5.2% 4.9%

South Atlantic 0.4% 0.5% 0.6% 4.3% 3.6% 3.1%





1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5



Palm Beach

US

South Atlantic

%


2002 2003 2004 2005 20060.0

2.0

4.0

6.0

8.0N Palm Beach/Jupiter

Palm Beach

South Atlantic

US






Section 31 - Current Submarket Vacancy Details




Before 1970 4.9%

1970-1979 n/a

1980-1989 12.8%

1990-1999 3.8%

After 1999 20.3%

All 10.1%

As of 09/30/07


0.0% 0.0% 10.1% 3.6% 10.8% 43.4%

16

43

20 0

13

Under4.9%

5.0%9.8%

9.9%14.7%

14.8%19.6%

19.7%24.5%

24.6%29.4%

29.5%34.3%

34.4%Over

Num

ber

of P

rope

rtie

s

As of 09/30/07


Vacancy Rates



N Palm Beach/Jupiter 10.1% 8.5% 8.8% 6.6% 5.0% 4.7%

Palm Beach 5.6% 4.9% 5.1% 5.0% 5.0% 5.4%

South Atlantic 7.2% 7.2% 7.2% 6.9% 6.6% 6.8%





1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07

5.05.56.06.57.07.58.08.59.09.5

10.0



Palm Beach

US

South Atlantic

%


2002 2003 2004 2005 2006

2.0

3.0

4.0

5.0

6.0


Palm Beach

South Atlantic

US






Section 33 - Current Submarket Vacancy Details




Before 1970 0.0%

1970-1979 3.9%

1980-1989 6.5%

1990-1999 0.0%

After 1999 17.3%

All 6.5%

As of 09/30/07


0.0% 2.2% 6.5% 7.4% 17.3% 24.4%

6

5

0

1 1

0 0 0

Under4.9%

5.0%9.8%

9.9%14.7%

14.8%19.6%

19.7%24.5%

24.6%29.4%

29.5%34.3%

34.4%Over

Num

ber

of P

rope

rtie

s

As of 09/30/07


Vacancy Rates



N Palm Beach/Jupiter 6.5% 6.1% 5.9% 4.7% 5.9% 6.0%

Palm Beach 5.7% 5.2% 5.4% 4.5% 4.5% 5.4%

South Atlantic 6.3% 6.3% 6.3% 6.4% 7.1% 7.3%





1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07

4.04.24.44.64.85.05.25.45.65.86.06.26.46.66.8



Palm Beach

US

South Atlantic

%


2002 2003 2004 2005 2006

4.0

5.0

6.0

7.0


Palm Beach

South Atlantic

US






Section 35 - Nonanchor Rent Growth Comparisons and Forecast


Asking Rent Growth



N Palm Beach/Jupiter - 0.0% - 0.0% 0.4% 7.6% 5.5% 4.8% 4.1%

Palm Beach 0.5% 0.5% 0.8% 7.9% 5.3% 4.7% 4.2%

South Atlantic 0.5% 0.6% 0.7% 4.3% 3.7% 3.2% 3.3%




Palm Beach 4 3 4 4 2 2 3 3South Atlantic 108 86 78 66 7 10 9 13United States 371 284 276 233 18 35 33 47

2002 2003 2004 2005 2006 2007 2008 2009 2010 20110.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0


Palm Beach

South Atlantic

US

Asking Rent Growth Rate Trends and Forecast%


Section 36 - Vacancy Rate Comparisons and Forecast

Vacancy Rates



N Palm Beach/Jupiter 8.1% 7.3% 7.2% 5.6% 5.4% 5.4% 6.6%

Palm Beach 5.7% 5.0% 5.2% 4.8% 4.8% 5.4% 5.3%

South Atlantic 6.8% 6.8% 6.7% 6.7% 6.9% 7.1% 7.0%





2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5


Palm Beach

South Atlantic

US

Vacancy Rate Trends and Forecast%





Section 37 - Submarket Inventory Detail

Inventory By Center Age Shopping Center Stock Traits

Year Built Percent

Before 1970 5.3%

1970-1979 16.9%

1980-1989 51.0%

1990-1999 9.0%

After 1999 17.8%

All 100.0%

As of 09/30/07

SubmarketLow Mean Median High

Year Built 1957 1986 1986 2005Size (sq. ft.) 10,200 99,844 97,685 338,100

Distance to Highway (miles) 0 0.50 0.20 1.80Distance to CBD (miles) 5.40 11.70 10 18

Distance to Landmark (miles) 0.30 2.30 1.60 6.70As of 09/30/07 Landmark =Coast



N Palm Beach/Jupiter 42 4,659,000

Share of Metro 17.3% 18.3%

As of 09/30/07Average Submarket Lease Terms

Anchor/Nonanchor CRD % Free Rent

(mos)Expenses $

(Commercial)Lease Term

(yrs)Leasing

Commission %Tenant

Improvements $A - 4.9% 4.1 $ 3.43 13.3 3.4% $13.69N - 5.9% 2.2 $ 3.45 4.2 3.4% $ 6.70

Section 38 - Inventory Growth Comparison

Inventory Growth Rates



N Palm Beach/Jupiter 9.4% 0.0% 3.0% 0.0% 3.3% 2.3% 2.8%

Palm Beach 1.6% 0.0% 0.5% 1.5% 2.1% 2.1% 1.5%

South Atlantic 0.4% 0.3% 0.4% 1.5% 1.9% 1.9% 1.6%





2002 2003 2004 2005 2006 2007 2008 2009 2010 20110.0

2.0

4.0

6.0


Palm Beach

South Atlantic

US

Inventory Growth Comparisons and Forecast%







Quarterly

3Q07 2Q07 YTD Avg



AbsorbedCon/Abs


Con/AbsRatio

N Palm Beach/Jupiter 399,000 331,000 1.2 0 -40,000 0.0 133,000 93,000 1.4

Palm Beach 399,000 213,000 1.9 0 -8,000 0.0 133,000 36,000 3.7Average over period ending: 09/30/07 09/30/07 09/30/07 06/30/07 06/30/07 06/30/07 09/30/07 09/30/07 09/30/07


Annualized




AbsorbedCon/Abs


Con/AbsRatio

N Palm Beach/Jupiter 0 -37,000 0.0 130,000 130,667 1.0 91,400 80,400 1.1

Palm Beach 370,000 429,000 0.9 498,333 526,667 0.9 488,200 578,200 0.8Average over period ending: 12/31/06 12/31/06 12/31/06 12/31/06 12/31/06 12/31/06 12/31/06 12/31/06 12/31/06


Annualized

5 Year Forecast


Con/AbsRatio

N Palm Beach/Jupiter 125,000 136,000 0.9

Palm Beach 401,000 381,000 1.1Average over period ending: 12/31/11 12/31/11 12/31/11

0

100,000

200,000

300,000

400,000

Squ

are

Fee

t

2002 2003 2004 2005 2006 2007 2008 2009 2010 20110

2

4

6

8

Vac

ancy

Rat

e (%

)Construction/Absorption and Vacancy

Vacancy Rate Construction Absorption





Section 40 - Submarket Data




VacancyChange(%)

OccupiedStock


Chg

2002 Y 1,960,000 0 0.0% 71,000 3.6% - 1.1% 1,889,000 21,000 $16.05 - 0.6%

2003 Y 2,009,000 49,000 2.5% 96,000 4.8% 1.2% 1,913,000 24,000 $16.91 5.4%

2004 Y 2,039,000 30,000 1.5% 39,000 1.9% - 2.9% 2,000,000 87,000 $17.98 6.3%

2005 4 2,061,000 0 0.0% 109,000 5.3% 0.9% 1,952,000 -18,000 $18.31 1.7%

2005 Y 2,061,000 22,000 1.1% 109,000 5.3% 3.4% 1,952,000 -48,000 $18.31 1.8%

2006 1 2,061,000 0 0.0% 124,000 6.0% 0.7% 1,937,000 -15,000 $18.51 1.1%

2006 2 2,061,000 0 0.0% 148,000 7.2% 1.2% 1,913,000 -24,000 $18.64 0.7%

2006 3 2,061,000 0 0.0% 157,000 7.6% 0.4% 1,904,000 -9,000 $19.17 2.8%

2006 4 2,061,000 0 0.0% 161,000 7.8% 0.2% 1,900,000 -4,000 $19.22 0.3%

2006 Y 2,061,000 0 0.0% 161,000 7.8% 2.5% 1,900,000 -52,000 $19.22 5.0%

2007 1 2,061,000 0 0.0% 159,000 7.7% - 0.1% 1,902,000 2,000 $19.48 1.4%

2007 2 2,061,000 0 0.0% 175,000 8.5% 0.8% 1,886,000 -16,000 $19.72 1.2%

2007 3 2,061,000 0 0.0% 208,000 10.1% 1.6% 1,853,000 -33,000 $19.66 - 0.3%



Stock%

2002 Y $14.86 - 0.9% 0.0 1.1%

2003 Y $15.44 3.9% 2.0 1.3%

2004 Y $16.38 6.1% 0.3 4.4%

2005 4 $16.55 0.9% 0.0 - 0.9%

2005 Y $16.55 1.0% -0.5 - 2.5%

2006 1 $16.77 1.3% 0.0 - 0.8%

2006 2 $16.98 1.3% 0.0 - 1.3%

2006 3 $17.41 2.5% 0.0 - 0.5%

2006 4 $17.41 0.0% 0.0 - 0.2%

2006 Y $17.41 5.2% 0.0 - 2.7%

2007 1 $17.68 1.6% 0.0 0.1%

2007 2 $17.87 1.1% 0.0 - 0.8%

2007 3 $17.73 - 0.8% 0.0 - 1.8%








VacancyChange(%)

OccupiedStock


Chg

2002 Y 1,843,000 0 0.0% 122,000 6.6% 0.7% 1,721,000 -13,000 $18.51 2.9%

2003 Y 1,861,000 18,000 1.0% 162,000 8.7% 2.1% 1,699,000 -22,000 $19.89 7.5%

2004 Y 1,861,000 0 0.0% 115,000 6.2% - 2.5% 1,746,000 47,000 $20.30 2.1%

2005 4 2,199,000 338,000 18.2% 110,000 5.0% 1.4% 2,089,000 295,000 $21.56 2.1%

2005 Y 2,199,000 338,000 18.2% 110,000 5.0% - 1.2% 2,089,000 343,000 $21.56 6.2%

2006 1 2,199,000 0 0.0% 130,000 5.9% 0.9% 2,069,000 -20,000 $22.14 2.7%

2006 2 2,199,000 0 0.0% 103,000 4.7% - 1.2% 2,096,000 27,000 $22.91 3.5%

2006 3 2,199,000 0 0.0% 88,000 4.0% - 0.7% 2,111,000 15,000 $23.16 1.1%

2006 4 2,199,000 0 0.0% 95,000 4.3% 0.3% 2,104,000 -7,000 $23.66 2.2%

2006 Y 2,199,000 0 0.0% 95,000 4.3% - 0.7% 2,104,000 15,000 $23.66 9.7%

2007 1 2,199,000 0 0.0% 110,000 5.0% 0.7% 2,089,000 -15,000 $23.96 1.3%

2007 2 2,199,000 0 0.0% 134,000 6.1% 1.1% 2,065,000 -24,000 $23.72 - 1.0%

2007 3 2,598,000 399,000 18.1% 169,000 6.5% 0.4% 2,429,000 364,000 $23.45 - 1.1%



Stock%

2002 Y $17.14 2.6% 0.0 - 0.8%

2003 Y $18.16 6.0% -0.8 - 1.3%

2004 Y $18.49 1.8% 0.0 2.7%

2005 4 $19.49 1.3% 1.1 14.1%

2005 Y $19.49 5.4% 1.0 16.4%

2006 1 $20.06 2.9% 0.0 - 1.0%

2006 2 $20.87 4.0% 0.0 1.3%

2006 3 $21.03 0.8% 0.0 0.7%

2006 4 $21.44 1.9% 0.0 - 0.3%

2006 Y $21.44 10.0% 0.0 0.7%

2007 1 $21.75 1.4% 0.0 - 0.7%

2007 2 $21.50 - 1.1% 0.0 - 1.2%

2007 3 $21.15 - 1.6% 1.1 15.0%








VacancyChange(%)

OccupiedStock


Chg

2002 Y 3,803,000 0 0.0% 193,000 5.1% - 0.2% 3,610,000 8,000 $17.24 1.2%

2003 Y 3,870,000 67,000 1.8% 258,000 6.7% 1.6% 3,612,000 2,000 $18.34 6.4%

2004 Y 3,900,000 30,000 0.8% 154,000 3.9% - 2.8% 3,746,000 134,000 $19.09 4.1%

2005 4 4,260,000 338,000 8.6% 219,000 5.1% 1.1% 4,041,000 277,000 $19.99 2.6%

2005 Y 4,260,000 360,000 9.2% 219,000 5.1% 1.2% 4,041,000 295,000 $19.99 4.7%

2006 1 4,260,000 0 0.0% 254,000 6.0% 0.9% 4,006,000 -35,000 $20.38 2.0%

2006 2 4,260,000 0 0.0% 251,000 5.9% - 0.1% 4,009,000 3,000 $20.84 2.3%

2006 3 4,260,000 0 0.0% 245,000 5.8% - 0.1% 4,015,000 6,000 $21.23 1.9%

2006 4 4,260,000 0 0.0% 256,000 6.0% 0.2% 4,004,000 -11,000 $21.51 1.3%

2006 Y 4,260,000 0 0.0% 256,000 6.0% 0.9% 4,004,000 -37,000 $21.51 7.6%

2007 1 4,260,000 0 0.0% 269,000 6.3% 0.3% 3,991,000 -13,000 $21.79 1.3%

2007 2 4,260,000 0 0.0% 309,000 7.3% 1.0% 3,951,000 -40,000 $21.78 0.0%

2007 3 4,659,000 399,000 9.4% 377,000 8.1% 0.8% 4,282,000 331,000 $21.77 0.0%

2007 Y 4,659,000 399,000 9.4% 364,000 7.8% 1.8% 4,295,000 291,000 $22.03 2.4%

2008 Y 4,659,000 0 0.0% 355,000 7.6% - 0.2% 4,304,000 9,000 $22.81 3.5%

2009 Y 4,659,000 0 0.0% 350,000 7.5% - 0.1% 4,309,000 5,000 $23.85 4.6%

2010 Y 4,768,000 109,000 2.3% 283,000 5.9% - 1.6% 4,485,000 176,000 $25.06 5.1%

2011 Y 4,887,000 119,000 2.5% 202,000 4.1% - 1.8% 4,685,000 200,000 $26.33 5.1%



Stock%

2002 Y $15.96 0.9% 0.0 0.2%

2003 Y $16.75 4.9% 33.5 0.1%

2004 Y $17.39 3.8% 0.2 3.6%

2005 4 $18.07 1.8% 1.2 6.9%

2005 Y $18.07 3.9% 1.2 7.3%

2006 1 $18.47 2.2% 0.0 - 0.9%

2006 2 $18.99 2.8% 0.0 0.1%

2006 3 $19.28 1.5% 0.0 0.1%

2006 4 $19.49 1.1% 0.0 - 0.3%

2006 Y $19.49 7.9% 0.0 - 0.9%

2007 1 $19.78 1.5% 0.0 - 0.3%

2007 2 $19.74 - 0.2% 0.0 - 1.0%

2007 3 $19.64 - 0.5% 1.2 7.7%

2007 Y $19.85 1.8% 1.4 6.8%

2008 Y $20.58 3.7% 0.0 0.2%

2009 Y $21.64 5.2% 0.0 0.1%

2010 Y $23.14 6.9% 0.6 3.9%

2011 Y $24.73 6.9% 0.6 4.3%

Rent Comps

Rent Comparables11201 US Highway One -- 11/28/2007

Subject Property Location and Key Tenants Subject Property Statistics

Comparable Group Summary Statistics

Avg. Submarket Lease Terms

SUBJECT PROPERTY

COMPARABLE GROUP MARKET SUMMARY

Address 11201 US Highway One

City North Palm Beach

State FL

ZIP 33408

Metro Palm Beach

Submarket N Palm Beach/Jupiter

Latitude 26.84655

Longitude -80.05937

Key Tenants

Property Type Retail

Property Sub-Type

Enclosed

Year Built

Latest Renovation

Total Size (SF)

Low Mean Median High

Current Asking Rent/SF (Nonanchor) $14.91 $22.87 $22.36 $33.00

Current Asking Rent/SF (Anchor) $11.96 $17.74 $17.02 $26.46

Current Vacancy Rate 0.0% 16.1% 6.2% 65.6%

Total Operating Expenses PSF $4.33 $8.43 $6.20 $11.00

Real Estate Taxes PSF N/A N/A N/A N/A

Property Size (SF) 20,000 94,534 96,548 231,569

Year Built 1974 1986 1985 2000

Contract Rent Discount -5.9%

Free Rent (months/lease) 2.2

Anchor Lease Length (years) 13.3

Nonanchor Lease Length (years) 4.2

Tenant Improvements/SF $6.70

Commissions 3.4%

Retail - Asset Advisor Rent Comparables11201 US Highway One North Palm Beach, FL 33408

Metro: Palm Beach



COMPARABLE GROUP LOCATION


Metro: Palm Beach



COMPARABLE GROUP LISTING

1

Name Carl's Plaza

Address 11940 US Highway One


State FL

ZIP 33408

County Palm Beach

Submarket North Palm Beach/Jupiter

Center Type Neighborhood Center

Enclosed No

Data As Of 9/30/07

Current Asking Rent (Nonanchor) $16.90

Current Asking Rent (Anchor) $16.75

Current Vacancy Rate 0.0%

Distance from Subject (miles) 0.31

Property Size (SF) 75,000

Year Built 1988

Most Recent Renov/Expansion

Anchor/Major Tenants Carl's Furniture 32,000 SF

Gimelstob Realty 4,000 SF

2

Name Oaktree Plaza

Address 11585 US Hwy 1

City Palm Beach Gardens

State FL

ZIP 33408

County Palm Beach



Enclosed No

Data As Of 9/30/07


Current Asking Rent (Anchor) N/A




Year Built 1985


Anchor/Major Tenants Century 21

Dunkin Donuts

Pancake House

Spa

3

Name Oakbrook Square



State FL

ZIP 33408

County Palm Beach


Center Type Community Center

Enclosed No

Data As Of 9/30/07






Year Built 1974

Most Recent Renov/Expansion 1999 / 2000

Anchor/Major Tenants Bassett Furniture 13,900 SF

Eckerd D 10,800 SF

First Union Bank 3,300 SF

Home Goods 90,326 SF

Publix S 44,400 SF

Stein Mart

Vacant Anchor 12,000 SF


Metro: Palm Beach




4

Name Pga Boulevard Plaza

Address 2690 Pga Blvd


State FL

ZIP 33410

County Palm Beach


Center Type Community Center

Enclosed No

Data As Of 9/30/07






Year Built 1974

Most Recent Renov/Expansion 1993

Anchor/Major Tenants Eckerd D 6,000 SF

Marshalls 27,509 SF

Nutrition World 10,220 SF

Pier 1 Imports O 8,000 SF

Sun Bank O 3,000 SF

Unknown O 900 SF

Washington Mutual O 9,000 SF

5

Name North Beach Plaza



State FL

ZIP 33408

County Palm Beach



Enclosed No

Data As Of 9/30/07






Year Built 1984

Most Recent Renov/Expansion 2006

Anchor/Major Tenants Blockbuster

Blockbuster

Burger King O G

Sound Advice 24,000 SF

West Marine

6

Name Gardens Square

Address 11701 US Highway 1


State FL

ZIP 33408

County Palm Beach



Enclosed No

Data As Of 9/30/07






Year Built 2000


Anchor/Major Tenants Bank 4,000 SF

Citi Mattress 14,000 SF


Metro: Palm Beach




7

Name North Palm Marketplace

Address 11241 US Highway 1


State FL

ZIP 33408

County Palm Beach



Enclosed No

Data As Of 9/30/07






Year Built 2000


Anchor/Major Tenants Vac Fmr Imports 9,520 SF

Vac Fmr Winn Dixie 50,839 SF

Vitimay 9,320 SF


Metro: Palm Beach


Sales Comparables

Sales ComparablesRetail

Copyright 2007 Reis, Inc.

Summary Statistics

Page 1 of 11

Subject Property Location

* In the case of a partial sale, the figures shown here include only the area purchased.

Name Asset Advisor

Address/Area Searched 11201 US Highway One, North Palm Beach, FL, 33408

Metro Palm Beach

Low Average High

* Total Size (SF) 3,749 60,478 100,620

* Total Anchor Area (SF) 3,749 40,666 69,679

Number of Floors 1 1 1

Year Built 1974 1991 2002

Distance From Subject (miles) 0.15 0.73 1.42

Time Since Sale (Months) 1 21 54

Sale Price $5,012,000 $11,368,328 $18,815,000

Sale Price PSF (Area Purchased) $138 $342 $1,337

Total Number of Properties 9

Retail - Asset Advisor Sales Comparables11201 US Highway One North Palm Beach, FL 33408

Metro: Palm Beach



Copyright 2007 Reis, Inc. Page 2 of 11

AddressDistance

From Subject Submarket Year BuiltTotal Size

(SF)Anch Size

(SF) Sale Price Price PSF Sale Date

1. 11940 US Highway 1 0.36 mi. N Palm Beach/Jupiter 1988 75,000 43,000 $11,437,954 $153 19 Oct 2007North Palm Beach, FL 33408

2. 9249 A1A 0.35 mi. N Palm Beach/Jupiter 1974 27,250 16,200 $5,350,000 $196 01 Oct 2007West Palm Beach, FL 33408

3. 11611 Ellison Wilson Rd 0.33 mi. N Palm Beach/Jupiter 1999 18,597GBA N/A $7,600,000 $409GBA Apr 2007Palm Beach Gardens, FL 33408

4. 11241 US Highway 1 0.38 mi. N Palm Beach/Jupiter 1999 100,620 69,679 $18,815,000 $187 Mar 2007North Palm Beach, FL 33408

5. 2899 PGA Blvd 1.26 mi. N Palm Beach/Jupiter 2001 3,749 3,749 $5,012,000 $1,337 14 Dec 2006Palm Beach Gardens, FL 33410

6. 2845 Pga Blvd 1.22 mi. N Palm Beach/Jupiter 2002 25,697 N/A $8,500,000 $331 Aug 2005Palm Beach Gardens, FL 33410

7. 12089 US Highway 1 0.47 mi. N Palm Beach/Jupiter 1984 96,548 44,623 $14,200,000 $147 24 Sep 2004R

Palm Beach Gardens, FL 33408

8. 2690 PGA Boulevard 1.06 mi. N Palm Beach/Jupiter 1976 96,219 37,729 $17,500,000 $182 20 Jun 2003West Palm Beach, FL 33410

9. 11241 US Highway 1 0.44 mi. N Palm Beach/Jupiter 1999 100,620 69,679 $13,900,000 $138 Jun 2003North Palm Beach, FL 33408


Metro: Palm Beach




Property Location and Physical Characteristics

Sale Details and Analysis

Additional Details When Available

Page 3 of 11

Property Name Carl's Plaza Property Type Neighborhood Ctr.

Address 11940 US Highway 1 Bldg. Area/Area Purchased (SF) 75,000GLA / 75,000GLA

City North Palm Beach Anchor/Nonanchor Space (SF) 43,000 / 32,000

State/ZIP/County FL / 33408 / Palm Beach No. of Bldgs./Floors 3 / 1

Metro (Submarket) Palm Beach (N Palm Beach/Jupiter) Year Built/Renovated 1988 / --

Comments

Sale Date 19 Oct 2007 Reis Cap Rate Analysis ProformaSale Price $11,437,954 (Verified: Pub Rcrd) All per square foot figures are on an annual basis

Sale Price PSF $153 Total Rentable Area Assumption 75,000 SF

Vacancy at Sale Potential Rent Revenue $1,107,608Vacancy Loss/Rate ($37,536) [2.9%]

($17.00 Shop Rent x 2,208 SF+ $13.81 Anch Rent x 0 SF)

Seller 1. Carls Plaza / 6810 N State Road 7, Coconut Creek, FL 33073 Effective Rent Revenue $1,070,072$14.70 In Place Rent x 72,792 SF

Expense Reimbursements $191,079 [$2.55 PSF]($3.75 PSF Exp. x 0.70 Reimb. Ratio

x 72,792 SF)

Free Rent Concessions ($1,728) [$0.02 PSF]Credit Loss ($11,076) [1.0%]

Buyer 1. Panatton Development CO LLC / 5900 N Andrews Ave, Unit 826,Fort Lauderdale, FL 333092. Thomas Properties DE LLC

Additional Income $0 [$0.00 PSF]

Effective Gross Revenue $1,248,347Operating Expenses ($281,250) [$3.75 PSF]

Capital Reserve ($7,500) [$0.10 PSF]Net Operating Income $959,597

Comments Additional buyers included DM Property Investments LLC; PintarInvestment Properties DE LLC; Borghese Investments LLC; BrushCreek Investments LLC; EPC North Palm Associates LLC; EPCNorth Palm Investor LLC.

Est Going-in Cap Rate/EGIM 8.4% / --Based on Sale Price of $11,437,954

Reis Indexed Metro Ret Cap Rate 7.7% [Q4 2007]Reported Cap Rate, This Sale None

Seller's Broker Parking Spaces

Buyer's Broker

Other Broker

Interest Purchased

Lot Size 251,341 SF / 5.77 Acres

Parcel Number 00434204000003010

Deed Reference 22234/106

Time on Market

Key TenantsCarl's Furniture 32,000 SF Ten OwndGimelstob Realty 4,000 SFBest Oriental RugsExuma Technologies

Financing Details

Other:

7 stores located at the property.


Metro: Palm Beach







Page 4 of 11

Property Name Live Oak Plaza Property Type Neighborhood Ctr.

Address 9249 A1A Bldg. Area/Area Purchased (SF) 27,250 / 27,250

City West Palm Beach Anchor/Nonanchor Space (SF) 16,200 / 11,050



Comments

Sale Date 01 Oct 2007 Reis Cap Rate Analysis ProformaSale Price $5,350,000 (Verified: Pub Rcrd) All per square foot figures are on an annual basis


Vacancy at Sale Potential Rent Revenue $437,500Vacancy Loss/Rate ($0) [0.0%]

($22.68 Shop Rent x 0 SF+ $13.81 Anch Rent x 0 SF)

Seller 1. Neptune Warehouse Ltd / (561) 742-5930 / 8845 N Military Trl,Unit 100, North Palm Beach, FL 33410

Effective Rent Revenue $437,500$16.06 In Place Rent x 27,250 SF


x 27,250 SF)

Free Rent Concessions ($0) [$0.00 PSF]Credit Loss ($4,375) [1.0%]

Buyer 1. Live Oak Plaza LLC / 358 Broadway, Unit 403, SaratogaSprings, NY 12866


Effective Gross Revenue $592,208Operating Expenses ($227,262) [$8.34 PSF]


Comments Est Going-in Cap Rate/EGIM 6.8% / --Based on Sale Price of $5,350,000



Buyer's Broker

Other Broker

Interest Purchased


Parcel Number 00-43-42-17-00-000-7021


Time on Market

Key TenantsBoulevard Gourmet CaDebra DeliversAlways In StitchesBird Lovers Paradise

Financing Details Manufacturers & Traders Trust Co provided loan due 12/1/2011.

Other:


Metro: Palm Beach







Page 5 of 11

Property Name Property Type Neighborhood Ctr.

Address 11611 Ellison Wilson Rd Bldg. Area/Area Purchased (SF) 18,597GBA / 18,597GBA

City Palm Beach Gardens Anchor/Nonanchor Space (SF) N/A / N/A



Comments

Sale Date 03 Apr 2007Rec Reis Cap Rate Analysis ProformaSale Price $7,600,000 All per square foot figures are on an annual basis


Vacancy at Sale Potential Rent Revenue $404,960Vacancy Loss/Rate ($0) [0.0%]

($22.22 Shop Rent x 0 SF+ $16.06 Anch Rent x 0 SF)

Seller 1. PGA Summers Associates / 18530 Mack Ave, Box 553, GrossePointe Farms, MI 48236

Effective Rent Revenue $404,960$22.22 In Place Rent x 18,225 SF


x 18,225 SF)


Buyer 1. GMRI Inc / 5900 Lake Ellenor Dr, Orlando, FL 32809 Additional Income $0 [$0.00 PSF]






Buyer's Broker

Other Broker

Interest Purchased


Parcel Number 52-43-42-04-29-000-0000


Time on Market

Key TenantsHibiscus RestaurantFathom

Financing Details

Other:


Metro: Palm Beach







Page 6 of 11

Property Name North Palm Marketplace Property Type Neighborhood Ctr.





Comments

Sale Date Mar 2007 Reis Cap Rate Analysis ProformaSale Price $18,815,000 (Verified: Pub Rcrd) All per square foot figures are on an annual basis




Seller 1. Wolfchase Associates LLC Effective Rent Revenue $1,318,329$13.71 In Place Rent x 96,134 SF


x 96,134 SF)


Buyer 1. CFO2 Palm Beach III LP / 5 Greenway Plz, Ste 1300, Houston,TX 77046



Capital Reserve ($10,062) [$0.10 PSF]Net Operating Income $1,251,609




Buyer's Broker

Other Broker

Interest Purchased


Parcel Number 68-43-42-04-31-001-0000


Time on Market

Key TenantsVac Fmr Winn Dixie 50,839 SFVac Fmr Pier 1 Impor 9,520 SFVitimay 9,320 SF

Financing Details

Other:

Previously sold in June 2003; see Reis Sales Comparables ID 69725.


Metro: Palm Beach







Page 7 of 11

Property Name Wachovia Property Type Bank

Address 2899 PGA Blvd Bldg. Area/Area Purchased (SF) 3,749 / 3,749

City Palm Beach Gardens Anchor/Nonanchor Space (SF) 3,749 / 0



Comments

Sale Date 14 Dec 2006 Reis Cap Rate Analysis ProformaSale Price $5,012,000 (Verified: Pub Rcrd) All per square foot figures are on an annual basis

Sale Price PSF $1,337 Total Rentable Area Assumption --

Vacancy at Sale 0.0% (excludes sublease) Potential Rent Revenue --Vacancy Loss/Rate --

Seller 1. Wachovia Bank NA / (904) 361-3165 / 225 Water St, Unit 850,Jacksonville, FL 32202

Effective Rent Revenue --

Expense Reimbursements --

Free Rent Concessions --Credit Loss --

Buyer 1. Branch Banking & Trust Co / (336) 433-4250 / 2825 ReynoldaRd, Winston Salem, NC 27106

Additional Income --

Effective Gross Revenue --Operating Expenses --

Capital Reserve --Net Operating Income --

Comments Est Going-in Cap Rate/EGIM -- / --



Buyer's Broker

Other Broker

Interest Purchased


Parcel Number 52-43-42-05-26-027-0062


Time on Market

Key TenantsWachovia 3,749 SF

Financing Details

Other:


Metro: Palm Beach







Page 8 of 11

Property Name Property Type Neighborhood Ctr.

Address 2845 Pga Blvd Bldg. Area/Area Purchased (SF) 25,697 / 25,697

City Palm Beach Gardens Anchor/Nonanchor Space (SF) N/A / N/A



Comments

Sale Date 10 Aug 2005Rec Reis Cap Rate Analysis ProformaSale Price $8,500,000 (Verified: Pub Rcrd) All per square foot figures are on an annual basis


Vacancy at Sale Potential Rent Revenue $700,001Vacancy Loss/Rate ($30,825) [4.4%]


Seller 1. Palm Beach Furniture Co Inc Effective Rent Revenue $669,177$27.23 In Place Rent x 24,574 SF


x 24,574 SF)


Buyer 1. Musca Properties LLC / 1202 Penton Media, Cleveland,OH44114



Capital Reserve ($2,570) [$0.10 PSF]

Net Operating Income [x 100.0%] $608,355




Buyer's Broker

Other Broker

Interest Purchased 100.0%


Parcel Number 52-43-42-05-26-027-0063


Time on Market

Key TenantsMed ExpressLa-Z-Boy Furniture G

Financing Details

Other:


Metro: Palm Beach







Page 9 of 11

Property Name North Beach Plaza Property Type Neighborhood Ctr.


City Palm Beach Gardens Anchor/Nonanchor Space (SF) 44,623 / 51,925

State/ZIP/County FL / 33408 / Palm Beach No. of Bldgs./Floors -- / 1


Comments

Sale Date 24 Sep 2004Rec Reis Cap Rate Analysis ProformaSale Price $14,200,000 (Verified: Pub Rcrd) All per square foot figures are on an annual basis


Vacancy at Sale 0.0% (excludes sublease) Potential Rent Revenue $1,244,441Vacancy Loss/Rate ($22,425) [1.6%]


Seller 1. ROHO North Beach Ltd Ross Realty Investments / Davie, FL Effective Rent Revenue $1,222,016$12.86 In Place Rent x 95,048 SF


x 95,048 SF)


Buyer 1. Fairway North Beach LLC Additional Income $45,000 [$0.00 PSF]


Capital Reserve ($9,655) [$0.10 PSF]Net Operating Income $1,129,875

Comments The buyer purchased the property in June of 1998 for $8,000,000. Est Going-in Cap Rate/EGIM 8.0% / --Based on Sale Price of $14,200,000

Reis Indexed Metro Ret Cap Rate --Reported Cap Rate, This Sale None

Seller's Broker Bob Sullivan, RJS Realty Group, (561) 659-9771 Parking Spaces

Buyer's Broker

Other Broker

Interest Purchased

Lot Size

Parcel Number 00-43-41-33-00-000-7070


Time on Market

Key TenantsSound Advice 24,000 SFWest Marine 10,150 SFCalifornia Fine Arts 10,473 SFAnthonys Ladies AppaBlockbuster VideoBurger King Ten Ownd / Grnd Lse / Outpcl

Financing Details

Other:


Metro: Palm Beach







Page 10 of 11

Property Name PGA Plaza Property Type Community Ctr.

Address 2690 PGA Boulevard Bldg. Area/Area Purchased (SF) 96,219GLA / 96,219GLA

City West Palm Beach Anchor/Nonanchor Space (SF) 37,729 / 58,490

State/ZIP/County FL / 33410 / Palm Beach No. of Bldgs./Floors -- / 1

Metro (Submarket) Palm Beach (N Palm Beach/Jupiter) Year Built/Renovated 1976 / 1987

Comments

Sale Date 20 Jun 2003 Reis Cap Rate Analysis ProformaSale Price $17,500,000 (Verified: Pub Rcrd) All per square foot figures are on an annual basis


Vacancy at Sale 3.0% (excludes sublease) Potential Rent Revenue $1,436,658Vacancy Loss/Rate ($125,686) [5.2%]


Seller 1. William G & Aneice R Lassiter Jr / 505 S Flagler Dr, Unit 1300,West Palm Beach, FL 33401

Effective Rent Revenue $1,310,972$14.38 In Place Rent x 91,192 SF


x 91,192 SF)


Buyer 1. MDC PGA Plaza LLC c/o Menin Development Co / 201 N USHighway 1, Unit D-5, Jupiter, FL 33477




Net Operating Income [x 100.0%] $1,157,030



Seller's Broker Parking Spaces 500

Buyer's Broker

Other Broker



Parcel Number


Time on Market

Key TenantsPier 1 Imports 8,000 SF OutpclEckerd 6,000 SFNutrition World 10,220 SFMarshalls 27,509 SFSun Trust Bank OutpclWashington Mutual Ba OutpclDunkin Donuts 1,050 SFSubway 1,050 SFNextel 1,050 SF

Financing Details AmSouth Bank provided financing for the acquisition in the amount of $15 million.

Other:

The buyer plans on improving landscaping, expanding the parking lot, and adding a new facade.


Metro: Palm Beach







Page 11 of 11

Property Name North Palm Marketplace Property Type Neighborhood Ctr.





Comments

Sale Date 16 Jun 2003Rec Reis Cap Rate Analysis ProformaSale Price $13,900,000 (Verified: Pub Rcrd) All per square foot figures are on an annual basis




Seller 1. North Palm Properties Ltd. Effective Rent Revenue $1,293,450$13.24 In Place Rent x 97,712 SF


x 97,712 SF)


Buyer 1. North Palm LLC 2. CEG North Palm LLC 3. Wolfchase Associates LLC / Birmingham, AL




Net Operating Income [x 100.0%] $1,160,403




Buyer's Broker

Other Broker



Parcel Number 68-43-42-04-31-001-0000


Time on Market

Key TenantsWinn-Dixie 50,839 SFVitimay 9,320 SFImports Extrodinzia 9,520 SF

Financing Details

Other:


Metro: Palm Beach


News & Politics

Sample Retail Asset Advisor