VISION 2005Commercial Market

Forecast

2506 Ponce de Leon Blvd Coral Gables, FL 33134 (305) 445-2808

ddabby@dabbygroup.com

DAVID DABBY, J.D., MAI

DABBY GROUP ADVISORS

DABBY GROUP VALUATIONS

Home Price One-year appreciation

Las Vegas $269,900 52%

Anaheim (Orange Co.) $655,300 38%

Riverside/SanBernardino $294,500 38%

San Diego $559,700 37%

Los Angeles $438,400 30%

West Palm Beach $294,000 26%

Miami $271,900 26%

Washington, D.C. $352,400 23%

Portland, ME $231,200 23%

Baltimore $251,700 23%

Honolulu $451,000 20%

“HAVES”

Home Price One-year appreciation

South Bend $93,800 3.1%

Syracuse $94,700 2.0%

Little Rock $109,400 4.0%

Columbia $120,700 -1.8%

New Orleans $137,500 3.2%

Greensboro/Winston-Salem $140,300 -0.4%

Detroit $141,800 5.5%

Dallas $141,000 0.8%

Columbus $150,400 0.3%

Atlanta $156,800 3.6%

Austin $158,900 -1.3%

“HAVE NOTS”

“Haves” “Have-Nots”

Home Price(2004 Q2)

$370,000 $131,400

Price Appreciation(2003 Q2 to 2004 Q2)

31% 2%

One-year Wealth Gain(2003 Q2 to 2004 Q2)

$87,500 $1,700

Net Migration(2003)

24,600 8,300

Job Growth(July 2003 to July 2004)

1.9% 0.1%

Income (per capita)(2002)

$33,776 $30,775

Housing Production(1990 to 2000)

1.6% 1.6%

Disparities Between the TWO

CoStar Industrial Report -2004

CoStar Office Market - 2004

CB Office Snapshot

Tri-County Combined Total Real Estate Sales Residential,Commercial & Land Combined

Sales Dollar Volume

1993 129,343 $20,458,323,800

1997 134,482 $27,164,302,800

1998 146,641 $29,590,134,800

1999 160,715 $34,037,415,600

2000 168,727 $36,103,001,500

2001 175,436 $38,895,360,900

2002 189,301 $47,168,786,500

2003 201,030 $57,749,728,800

2004est 223,400 $75,934,000,000

Survey prepared for the Keyes company.

Commercial Property Sales - Dollar Volume Trend

OFFICES Commercial Sites WarehousesRental

Apartments

YearNumber of Sales

Dollar Volume

Number of Sales

Dollar Volume

Number of Sales

Dollar Volume

Number of Sales

Dollar Volume

1999 726 $1.83 Bil 1,032 $1.32 Bil 862 $0.90 Bil 2,118 $2.04 Bil

2000 688 $1.69 Bil 1,017 $1.15 Bil 834 $0.85 Bil 2,166 $2.17 Bil

2001 697 $1.40 Bil 915 $0.97 Bil 878 $1,03 Bil 2,226 $2.76 Bil

2002 691 $1.98 Bil 895 $0.95 Bil 1,042 $1.07 Bil 2,278 $2.50 Bil

2003 850 $2.14 Bil 990 $1.34 Bil 1,176 $1.50 Bil 2,362 $3.41 Bil

2004est

934 $2.01 Bil 1,046 $1.79 Bil 1,384 $1.82 Bil 2,346 4.75 Bil

Survey prepared for the Keyes company.

Commercial Real Estate – Pricing and AppreciationRanking Real Estate Category County

LocationMedian Per SF(2002)

Median Per SF(2003)

Median Per SF(2004 est)

% AnnualGain2002-04

1 Retail Centers Miami-Dade $124.38 138.68 179.39 22%

2 Retail Centers Broward $104.42 $116.46 $148.15 21%

3 Retail Centers Palm Beach $94.61 $106.32 $129.87 19%

4 Commercial Sites Miami-Dade $21.31 $21.17 $37.11 37%

5 Commercial Sites Broward $7.57 $8.57 $12.36 32%

6 Commercial Sites Palm Beach $10.36 $9.49 $14.75 21%

7 Rental Apts Miami-Dade $72.90 $95.54 $112.43 27%

8 Rental Apts Broward $79.37 $95.98 $104.53 16%

9 Rental Apts Palm Beach $80.58 $88.07 $102.20 14%

10 Office Buildings Miami-Dade $113.04 $102.53 $112.20 < -1%

11 Office Buildings Broward 93.58 104.04 $112.63 10%

12 Office Buildings Palm Beach $102.55 $114.41 $137.68 17%

13 Warehouses Miami-Dade $60.08 $55.98 $61.84 1.5%

14 Warehouses Broward $61.51 $63.34 $67.35 4.8%

15 Warehouses Palm Beach $59.98 $61.65 $65.46 4.5%

Courvoisier Courts

Price: $96,000,000

# Units: 272Price per Unit: $352,941

Seller: Metropolitan PropsBuyer: Elliott Sharaby

Prior Sale: $61 Million in 12/01

Lakeview Club – Oakland Pk.Sale Price: $43,000,000

#Units 442

PricePer Unit: $98,900

Seller: Sizeler REITBuyer:

Note: Despite marginal location and 55% one bedroom mix property sold for $98,900 per unit. Hispanic converters from Miami were targeted to buy this property.

Poinciana – Miami Urban In-fill

Sabal Palm Manor

Alhambra Plaza / Alhambra West

Price $72.3 million or $229 per sfRentable SF 316,000 SF property (225,000 SF

in the Class A building and 91,000 SF in the Class B)

Seller – Edwards DayBuyer – Crescent Real Estate Equities

Cap Rate 7.8% on current incomeOcc. Rate 92.1% leased (Alhambra Plaza

96.1% & Alhambra West 82.5%)

Cash flow driven investment with moderate upside in operating expenses. Moderate tenant rollover for the next three years.

Trade Center South Ft. Lauderdale

Price: $29,150,000

Rentable: 215,049 SF

Price per SF $136

Year Built: 1986

Seller: General Electric

Buyer: Tricony

Cap Rate: 6.7 %(on in place inc.)

Wachovia- 800 Brickell Avenue

Price - $33,070,000

Rentable SF – 208,235

Year Built - 1981

Seller - Brickell Associates

Buyer - Stiles Corporation & Guggenheim

Price per SF - $159

Cap. Rate - 6%

Note: Prior Sales – 1982 - $42,000,000

1987 - $35,400,000 1999 - $24,500,000

Crown Park II– Miami Lakes

For Sale Condominiums

Price: $100/ SF Shell

Sold Out in 3 Months

Doral Multi-Bay Milam Dairy Rd. Corridor

Price: $3,000,000 Plus Cap. Rate: 5.5%-8.5%

Size: 53,000 SF (1990) Price per SF: $60(est)

Comment: Marketed for Conversion but new buyer is not converting. Was under K for $3 mil but flipped to buyer for undisclosed amount.

Sheraton Biscayne Bay