Independently Owned and Operated Office Industrial Retail 2012 Retrench or Reboot? Commercial Real Estate Forecast Independently Owned and Operated OFFICE Independently Owned and Operated *Vacancy includes sublease space Source: Grubb & Ellis|Thomas Linderman Graham OFFICE Independently Owned and Operated OFFICE Source: Grubb & Ellis|Thomas Linderman Graham Independently Owned and Operated Source: Grubb & Ellis|Thomas Linderman Graham OFFICE Independently Owned and Operated Source: Grubb & Ellis|Thomas Linderman Graham OFFICE Independently Owned and Operated 2012 Forecast Stronger absorption but still below previous recoveries Overall vacancy below 18.5%, Class A vacancy below 15% by year- end Class A rents will stabilize, increase in select submarkets OFFICE Independently Owned and Operated 2012 Forecast Limited development activity will lead to shortage of Class A space by 2013 Glut of Class B vacancy will improve in 2012 as Class A options become limited OFFICE Independently Owned and Operated INDUSTRIAL Independently Owned and Operated Sources: Triangle Business Journal, Grubb & Ellis|Thomas Linderman Graham INDUSTRIAL Independently Owned and Operated INDUSTRIAL Sources: Triangle Business Journal, Grubb & Ellis|Thomas Linderman Graham Independently Owned and Operated INDUSTRIAL Average Asking Rental Rates Sources: Triangle Business Journal, Grubb & Ellis|Thomas Linderman Graham Independently Owned and Operated 2012 Forecast Absorption will increase, but pace of recovery will remain modest R&D/flex will benefit from a recovering office market Warehouse/distribution stands to benefit from improving auto industry and on-shoring INDUSTRIAL Independently Owned and Operated 2012 Forecast Lack of class A space will keep asking rental rates stable to slightly higher May see some build-to-suit activity, but little to no speculative construction INDUSTRIAL Independently Owned and Operated RETAIL Independently Owned and Operated Sources: Triangle Business Journal, Grubb & Ellis RETAIL Independently Owned and Operated Sources: Triangle Business Journal, Grubb & Ellis|Thomas Linderman Graham RETAIL Independently Owned and Operated Retailers Closing Locations RETAIL Independently Owned and Operated New and Expanding Retailers RETAIL Independently Owned and Operated 2012 Forecast Strong demographics will keep the Triangle a top target for new and expanding retailers Lull in construction completions will help bring vacancy down More redevelopment and infill projects RETAIL Independently Owned and Operated 2012 Forecast Vacancy will trend slowly downward Retailers will benefit from pent up demand and improving consumer confidence Flight to quality will continue, but dwindling Class A options will help drive activity elsewhere RETAIL