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ContentsReis Observer 3

Metro AnalysisSection 1 - Current Metro Rent Details 14Section 2 - Rent Growth Comparisons 14Section 3 - Current Metro Vacancy Details 15Section 4 - Vacancy Rate Comparisons 15Section 5 - Metro Inventory Detail 16Section 6 - Inventory Growth Comparison 16Section 7 - Construction/Absorption Change 17Section 8 - Submarket New Construction Project Tally 18Section 9 - New Construction Listing 19Section 10 - Market Data by Building Class - Class A Properties 26Section 11 - Market Data by Building Class - Class B/C Properties 28Section 12 - Submarket Snapshot 30Section 13 - Economic and Demographic Trends 31Section 14 - Submarket Boundaries 32Section 15 - Metro Data 33

Submarket AnalysisSection 16 - Current Submarket Rent Details 35Section 17 - Rent Growth Comparisons 35Section 18 - Current Submarket Vacancy Details 36Section 19 - Vacancy Rate Comparisons 36Section 20 - Submarket Inventory Detail 37Section 21 - Inventory Growth Comparison 37Section 22 - Construction/Absorption Change 38Section 23 - Market Data by Building Class - Class A Properties 39Section 24 - Market Data by Building Class - Class B/C Properties 40Section 25 - Submarket Data 41

Rent ComparablesSale 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 CHICAGO OFFICE MARKET

1

Q 22006

THE ECONOMY

Broad shoulders. Four successive years of net job losses finally were relieved in 2005 when, according to data provided by the U.S. Department of Labor’s Bureau of Labor Statistics (BLS), average nonagricultural employment in the Chicago area Metropolitan Division grew by 1.0%, adding 36,800 jobs net to the local economy. It is a modest growth rate by U.S. norms but is not insignificant by Chicago standards (year-over-year increases over the eight-year period preceding the recent recession averaged 1.7%). The pace now has picked up—slightly. Non-farm employment as of June 2006 was up 1.2% (44,600 jobs) from 12 months prior. But dramatic improvement is not expected. While the economy is broad and diverse, there is no dynamic growth engine that will shake it loose from the pattern of slow growth. And the Metropolitan Division’s large manufacturing sector, accounting for about 400,000 jobs, continues to struggle. While its losses were the smallest of the series, 2005 was the seventh year in succession to see net employment losses in this sector. And the losses continue. Employment in Manufacturing as of June 2006 was down 1.7% (6,900 jobs) from the preceding June. The economy’s overall growth, accordingly, derives from the greater vitality of other sectors (substantial increases are indicated for the professional and business services and educational and health services segments, for example). Stability, thus, is a chief attribute. The economy is expected to gain additional leverage over time from the multi-year, $15 billion expansion underway at O’Hare International Airport, which Marcus & Millichap Real Estate Investment Brokerage Company expects will generate 90,000 to 195,000 jobs by completion. The unemployment rate as of July was 4.6%, down from 6.4% twelve months earlier. Population growth, another factor in the economy’s typically slow growth, remains sluggish: the 0.6% annual average increase indicated by Economy.com for the past five years leaves just enough room for modest net in-migration. Still, the average annual numerical gain, at about 46,000, represents significant demand for goods, services and real estate product. Thus, while Chicagoland growth overall is slow, there are pockets of vitality. Residential development, accordingly, continues, expanding ever farther into increasingly remote suburban areas, particularly those in the far west and far southwest, and downtown Chicago has seen a remarkable surge in condominium development and conversion over the past few years. That said, home prices, holding to the Midwestern model, have shown only moderate increases in the recent term; the local market has not participated in the huge run-ups that have captured many of the

Chicago Employment by Sector

Prof. & Business Svc.

16%

Retail Trade & Consumer Svc.

15%

Government13%

Leisure & Hospitality

9%

Wholesale5%

Finance8%

Information2%

Manufacturing10%

Constr, Trans, Util, Nat. Rsrce

9%

Education & Health Svc.

13%

Source: BLS

Employment: • BLS reports a seasonally

unadjusted unemployment rate of 4.6% in July for the Chicago MSA.

• Average nonagricultural

employment in MSA was up 1.2% year over year in June, according to data provided by the BLS.

• Economy.com reports a second quarter 2006 average household income of $111,833 for Chicago. By contrast, an average of $108,545 and $101,810 are reported for the top metros in the nation and Midwestern region, respectively.

Office - Asset Advisor Reis Observer2006 Q2

Metro: Chicago

Copyright 2006 Reis, Inc. Page 3


2

Q 22006

Chicago Non-Farm Employment Growth

-100

-50

0

50

100

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

bs A

dded

(000

's)

-3%

-2%

-1%

0%

1%

2%

3%

Rate of Growth

Jobs Added Rate of GrowthSource: BLS

markets on the nation’s east and west coasts. The National Association of Realtors reports a second quarter metro area single-family home resale price (preliminary) of $278,500, up 4.9% over 12 months. OUTLOOK The broad shoulders of the local economy, its lack of high-growth drivers, and the good health of its service sectors suggest that the recently regained stability will continue, as long as the national economy can lend support. In the meantime, expanding employment and ongoing population growth, particularly in selected suburban areas and downtown, should fuel demand for real estate of all types.

Population Trends

0.0%0.2%0.4%0.6%0.8%1.0%1.2%1.4%1.6%1.8%

91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

Popu

latio

n G

row

th (%

cha

nge)

Chicago Midwestern US USSource: Economy.com

Office Employment Trends

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

91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

Offi

ce E

mpl

oym

ent (

% c

hang

e)

Chicago Midwestern US USSource: Economy.com


Metro: Chicago



3

Q 22006

THE REAL ESTATE MARKET

In the space of three years, from year-end 2000 to the end of 2003, the Chicago office market, undermined by the collision of robust development with precipitous negative absorption, added 1,000 basis points to its vacancy rate and 23.4 million square feet to its stock of vacant space. High vacancy and other symptoms of softness lingered for a while thereafter, and only last year did the market begin to show signs of recovery, which now are multiplying. While development remains active, demand volumes have soared to their highest level in years, finally surpassing new supply. Vacancy, while still elevated, is moving downward decisively, and growth has returned to rents. The local economy, creating jobs in the business services and financial sectors, provides the foundation. That said, however, large volumes of vacant space still damp this market, even as a new development cycle is rearing its head.

OCCUPANCY

The latest dramatic cycle of development and the simultaneous descent of absorption into negative territory resulted in vacant above 19.0% in 2004—as in turn the volume of vacant stock rose above 43.5 million square feet (an entire city’s worth of empty office space). But the combination of revived absorption and the removal of stock (mainly lower-tier) from the market for conversion to other uses reversed the trend in 2005. By the end of that year the vacancy rate had slipped to 18.7%. Improvement now has become more earnest. With demand running strong, the rate had declined to 17.9% by mid-year (representing 40.8 million square feet, 17.7 million of which are Class A). A decline to 17.4% is anticipated by year-end after which substantial year-over-year decreases will drop the number to 12.6% by the end of 2010, according to our latest forecast. Occupancy’s recovery has begun: its effects, as detailed below, now extend into the rental and development sectors.

Special Real Estate Factors: : : : • Grubb & Ellis Company recently

reported that landlords marketing metro Chicago’s abundant stock of Class B space soon will be faced with a decision. “If they are willing to spend some money on tenant improvements and offer generous lease packages,” explains the firm, “they will be able to attract tenants.” Those reluctant to make such decisions will see their vacancies linger, that source cautions.

• Marking Los Angeles-based

BentleyForbes’s entry into the Chicago market—as well as its largest acquisition to date—that privately held investment company spent approximately $470 million, or about $214 psf, to acquire the two-building (41 and 64 stories, respectively), 2.2-million-square-foot Prudential Plaza office campus in downtown Chicago’s East Loop adjacent to Millennium Park. The site includes the original Prudential Building, located at 130 E. Randolph Street and completed in 1995, and Two Prudential Plaza at 180 N. Stetson Ave., completed in 1990. San Francisco-based Shorenstein Properties was the seller, which according to Crain’s Chicago Business paid about $182 a square foot for the property in 2000. According to that source, the complex is about 85% leased.

• In July, Jackson, MS-based

Parkway Properties closed its fee simple purchase of the 1.0 million-

Office Vacancy Trends

0%

5%

10%

15%

20%

25%

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

Ave

rage

Vac

ancy

Chicago Midwestern US USSource: Reis, Inc.


Metro: Chicago



4

Q 22006

Grubb & Ellis sees a similar trend, although its descent timetable lags Reis’s a bit—or according to this source, a vacancy peak of 19.3% was reached as recently as third quarter 2005. Since then, the rate has dropped to 17.2%. Julien J. Studley Inc. reports second quarter overall and Class A vacancies at 18.3% and 18.4%, each down 50 basis points from a quarter prior and each down 130 points year over year. Reis, for its part, puts the quarter-end Class A rate at 16.7%, down 220 points over 12 months, as the volume of vacant stock in this class decreased by about 950,000 square feet.

SUPPLY AND DEMAND

Net absorption, after turning in its first substantial total last year (1.1 million square feet) is expected to soar to 3.4 million in 2006, 2 million of which had been accomplished by mid-year. While construction, dominated by the downtown markets, remains active, the 1.5 million square feet projected to deliver in 2006, nearly all of which have already, will amount to only 43% of same-term absorption. Significantly, 2006 will be the first year since 2000 in which net absorption exceeds same-year deliveries. That trend should continue. Reis is forecasting respective net absorption and construction completion totals of 16.6 million and 6.5 million square feet for the four-year span 2007 through 2010. Also aiding in the recovery of the market is an actual reduction of non-Class A supply due to the conversion of space to other uses. By the firm’s count, Class B-C inventory decreased by 1.8 million square feet last year, with 622,000 additional square feet of such space leaving the market during first half 2006. With Class A inventory growing by similar amounts, the supply of total existing inventory, now reported at 227.8 million square feet, has held roughly steady. Now, however, with over-supply concerns in the residential condominium market, the attractiveness of older office buildings to residential developers appears to be on the wane. Further, Grubb & Ellis Company warns of the potential danger of a new round of development in the downtown markets: nearly 3 million square feet, this source notes, are expected to arrive on line in the CBD over the

Special Real Estate Factors:Continued

square-foot, 32-story One Illinois Center office tower at 111 E. Wacker Drive in downtown Chicago’s East Loop, Grubb & Ellis reported in its second quarter Capital market Updates. Parkway Properties Inc. already owns Two Illinois Center. The selling price, excluding closing costs and transfer taxes, was $198 million, or $215 psf (RSF). According to a company press release, “The purchase price represents an estimated 23% discount to current estimated replacement cost of $280 RSF. The property is expected to produce an initial unleveraged yield or going-in cash capitalization rate of approximately 6.3% in the first twelve months of operations, calculated using first year estimated net operating income of $13.5 million and the total purchase price of $215.4 million.” The sellers in the deal were Lincoln Property Co. and Carlyle Group.

• Other significant sales include the

$300 million purchase by Fremont Realty Capital and Shorenstein Properties of the 70%-occupied 311 S. Wacker Drive building, GlobeSt.com reported in August 2006 Walton Capital was the seller “Vacancy rates in the Chicago Downtown office market are decreasing,” stated an executive with Carlton Advisory. “Currently in tower space—26

Chicago Office Supply and Demand Trends

-15,000

-10,000

-5,000

0

5,000

10,000

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

Squa

re F

eet (

000'

s)

0%

5%

10%

15%

20%

25%

Vacancy R

ate

Completed Absorbed Vacancy RateSource: Reis, Inc.


Metro: Chicago



5

Q 22006

next few years (Reis’s research, as referenced in the Submarkets section, also show a heating up of activity downtown). “As tenants leave current locations in favor of new construction,” Grubb & Ellis notes, “anticipated future vacancies will temper the pace of recovery.” CB Richard Ellis reports current construction at 1.8 million square feet, 1.35 million of which are downtown and all of which are Class A. Net absorption for the latest quarter, meanwhile, is counted by this source at 1.5 million square feet, about 43% of which is attributed to the CBD markets. Grubb & Ellis reports net absorption year-to-date at 3.3 million square feet, including 2.2 million downtown. According to Studley, the inventory of large blocks of space (minimum size 125,000 square feet) has diminished in both the downtown and suburban markets. For the metro area as a whole, this source reports 37 such blocks on the market as of mid-2006, down from 50 a year earlier. This progress aside, it should not be overlooked that the volume of vacancy in these spaces and in the market as a whole remains considerable. Grubb & Ellis’s admonition respecting a new wave of construction in the downtown area should be given serious consideration.

RENTS

While the average asking lease rate evinced small increases during the last three quarters of last year, 2006 will be the first year since 2000 to record a year-over-year increase, which Reis forecasts at 2.5%. Growth returned to the average effective rate last year, but the small, 0.4% gain was negligible alongside the preceding losses, which also extended back through 2001. But 2006 is expected to grace this rental category with a gain on the order of 3.4%. Rates of year-over-year gain are expected to increase gradually, albeit not steadily, through 2010. Respective asking and effective averages for second quarter 2006 were $25.02 and $20.35 psf, up 0.1% and 0.8% from the preceding quarter. Studley puts second quarter metro area overall and Class A asking averages at $22.87 and $25.15 psf, up 0.6% and 0.3% for the period though down year over year. Reis, for its part, cites a Class A mean of $30.32 psf, down 0.5% for the quarter, up 0.4% over 12 months. According to Grubb & Ellis, the Class A weighted average asking price

Office Rent Trends

-10%

-5%

0%

5%

10%

15%

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

Ren

t Cha

nge

Chicago Midwestern US USSource: Reis, Inc.

floors and up—on Wacker Drive, rates are at about 7%. That remains true with the 311 building; its vacancy remains in the top floors.” According to GlobeSt.com, “The property, one of the most high-profile buildings in the Downtown area, had languished for several years under a series of owners and weak market conditions. The purchasers feel the Chicago market is entering a period of resurgence, with falling vacancies and rising rents.” GlobeSt. reported earlier that Behringer Harvard REIT I has spent $27.5 million ($192 psf) to acquire the 35-story 222 S. Riverside Plaza, as well as the adjacent three-story Union Station Multiplex at 444 W. Jackson Blvd., from Beacon Capital Strategic Partners III, LP.

Special Real Estate Factors:Continued


Metro: Chicago



6

Q 22006

increased by nearly $1.00 psf over the past four quarters, as a result mainly of “higher asking rates in new Class A buildings.” SUBMARKETS

Downtown Chicago • The window of opportunity for recovery of the downtown market

likely will be brief. Just as a massive wave of development finally is ending, a new one is getting underway.

• “With the addition of new towers in the Loop, landlords are being

forced to make upgrades, and the space being vacated is leaving a big void,” a real estate economist with Property & Portfolio Research informs GlobeSt.com.

• Fifield Company’s 479,000-square-foot 550 W. Adams project in the

West Loop delivered in June. USG Corporation and Humana are tenants. Occupancy scheduled for third quarter, and CB Richard Ellis puts leasing in the new building at about 76%.

• Houston-base developer Hines broke ground in July on a 60-story,

1.5-million-square-foot tower at 300 N. LaSalle in the River North area (a.k.a. Gold Coast), reports GlobeSt.com. Anchor tenant law firm of Kirkland & Ellis has committed to 600,000 square feet in the new building, leaving their space at 200 E. Randolph Drive. Early 2009 delivery is anticipated. Accordingly, notes this source, “Industry experts agree that the tenant is a boon for Hines, but that the Chicago commercial real estate industry could be creating a void by vacating some older buildings.”

• The 1.2-million-square-foot, 40-story 351 N. Clark Street building

from Mesirow Financial, also in River North, is scheduled to break ground on September 1, reports CB. The firm reports pre-leasing at 75.0%.

• Hines, reports this source, has proposed a 1.0-million-square-foot

project for 200 N. Riverside Plaza. • Fifield Realty has proposed a 37-story, 894,000-square-foot tower at

601 W. Monroe on what the developer describes as “one of the last great office sites available in the West Loop.”


Metro: Chicago



7

Q 22006

• In August, reports GlobeSt.com, Mills sold “a major portion” of 108 N. State to Golub & Company. “The deal gives Golub control of an office building that will accommodate WBBM-Channel 2 and two residential towers.”

• A 1.25-million-square-foot tower is planned for 301 S. Wacker in the

West Loop, reports Reis. • With the start of retail construction, development of Mills

Corporation’s $295 million 108 N. State Street (formerly Block 37) mixed-use commercial-residential project in the Loop is moving forward. Plans, reports the Chicago Tribune, include 300,000 square feet of office space.

• The last wave…. Recent major completions include Hines’s spec

825,000-square-foot One South Dearborn, anchored by law firm Sidley Austin, which delivered to the Central Loop in December 2005.

• The $275-million, 52-story, 1.0-million-square-foot 111 S. Wacker

Drive tower from John Buck Company, leased to Deloitte & Touche, Lord, Bissell & Brook, and RR Donnelly, completed construction in the West Loop in June 2005. The building has since sold for a record price of $401 psf.

• Higgins Development Partners’ $225 million, 1.5-million-square-foot

Hyatt Center at 71 S. Wacker Drive finished construction in July. • Reis puts second quarter West Loop vacancy and average asking rent

at 15.7% and $30.69 psf. Net absorption year-to-date is 1.1 million square feet.

• Central Loop vacancy and average asking rent were 18.5% and $28.00

psf. Next absorption through the first half of 2006 was 704,000 square feet.

• Quarter-end River North vacancy and average asking rent were 11.1%

and $23.16 psf. Net absorption through mid-year 2006 was 183,000 square feet.

• For downtown generally, Studley expects the gradual rise in rents to

become a trend. “Concession packages are beginning to tighten and free rent is on the decline.”


Metro: Chicago



8

Q 22006

West Suburban • Development has slowed markedly in Chicago’s extensive western

suburban areas. But, as in the downtown market, activity is again heating up.

• In Reis’s suburban West submarket, 6.8 million square feet completed

construction from 1998 through 2004. • While only 581,000 square feet delivered during the two-year span

2003 through 2004, and only 50,000 finished last year, 2007 is expected to produce 1.1 million square feet, (following this year’s 291,000 square feet).

• In the West, 214,000 square feet completed construction during first

half 2006 in a handful of small projects. The largest (by far) was the 110,000-square-foot installment at Estancia Corporate Center in Burr Ridge, which finished in March.

• Many projects are on the drawing board in areas including Naperville,

Bolingbrook, Aurora, Burr Ridge, Downers Grove and Lisle. • Major proposed projects include new phases totaling 470,000 square

feet for The Corridors complex in Downers Grove. Alter Group is the developer.

• In the same town, the 250,000-square-foot fifth phase of Highland

Landmark is planned. • The second phase of Corporetum Office Tower planned for Lisle

would add 365,000 square feet, while projects planned for Warrenville Road in the same town will, if built, add 581,000 square feet.

• Studley reports a 105,000-square-foot second quarter lease by Wilson

Sporting Goods at 8770 W. Bryn Mawr Avenue in the O’Hare area. • Net absorption year-to-date for the West submarket calculates at

negative 82,000 square feet. The net for the year all told, however, is forecast at positive 336,000 square feet.

• The average asking rent for the West is given as $21.38 psf, up 0.8%

over the quarter.


Metro: Chicago



9

Q 22006

Northwest Suburban / North Suburban • From 1998 through 2002, developers added more than 5.6 million

square feet of new multi-tenant space to the suburban Northwest submarket. Thereafter, the pace slowed. In 2005, the annual completion total fell to lower than 100,000 square feet. Multi-tenant construction, however, is picking up.

• The North’s recent profile is similarly cyclical. Construction dropped

to nearly nothing last year and only 46,000 square feet will deliver in 2006. But the 2007-2008 period is expected to see the completion of 482,000 square feet.

• In Lake Forest (in Reis’s North submarket), Opus North has

commenced construction of the $35-million, 160,000-square-foot, speculative Class A Landmark II project on S. Sanders Road, reported the Chicago Daily Herald in July. The developer expects completion in July 2007.

• Also in Lake Forest, Duke Realty Corporation will break ground in

October on its 100,000-square-foot West Lake at Conway, a Class A spec office building. “The announcement,” notes GlobeSt, “follows Duke's lease-up of another speculative building in the same park—Cadence at Conway, a 138,000-square-foot office development,” leased to tenant Hospira Inc. in June.

• Grubb & Ellis cites the Elgin area in the far northwest as “hot” with

“significant activity along I-90m between Route 31 and Randall Road,” due to “tremendous growth in Kane County.”

• Komatsu America Corporation has moved its headquarters to Rolling

Meadows in the Northwest, reported GlobeSt. at the end of July. The firm now occupies 105,437 square feet in Prime Group Realty Trust’s 280,000-square-foot Tower 1 at Continental Towers, located at 1701 Golf Road. The 911,000-square-foot Continental Towers complex is now 92% leased, this source reports.

• In the Schaumburg area, Citigroup moved into 177,000 square feet

during second quarter. Grubb & Ellis characterizes the deal as “the largest suburban office lease year-to-date.”


Metro: Chicago



10

Q 22006

• Vacancies in the North and Northwest remain elevated at 17.0% and 19.7%. Respective North and Northwest average asking lease rates are given as $22.28 and $21.00 psf.

• Year-to-date net absorption totals through mid-year are reported at

negative 238,000 square feet for the North and positive 426,000 for the Northwest.

OUTLOOK

The market has been staging a convincing recovery from the severe imbalance of supply to demand that fell upon it post-2000. Although that recovery is not complete, a new cycle of development, while not as energetic as the previous one, now poses material concern. Much will depend on the local economy, which at the moment is doing well. Reis expects demand to maintain its recently regained lead over new supply, and barring an unexpected shake-up, vacancy should continue to decrease over the next several years while landlords enjoy higher rates of rental growth and relaxation of concessions. •

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 Economy. com Publication Date: September 2006 © 2006 Reis, Inc.


Metro: Chicago


Metro Analysis

Office - Asset Advisor 3rd Quarter 2006

Metro: Chicago


Section 1 - Current Metro Rent Details

Asking Rent by Age Asking Rent Distribution Asking Rent Growth Rate Distribution

Year Built Rent

Before 1970 $23.05

1970-1979 $24.79

1980-1989 $25.48

1990-1999 $28.59

After 1999 $30.10

All $25.24

As of 09/30/06

Low 25% Mean Median 75% High

$14.03 $20.08 $25.24 $24.86 $29.73 $39.74

510 511

354

184

10353

15 22

Under$17.24

$17.25$20.45

$20.46$23.66

$23.67$26.87

$26.88$30.08

$30.09$33.29

$33.30$36.50

$36.51Over

Num

ber

of P

rope

rtie

s


- 5.0% - 0.1% 0.9% 0.9% 2.5% 8.1%

52 48107

308

633

313

178113

Under- 4.9%

- 4.8%- 3.3%

- 3.2%- 1.7%

- 1.6%- 0.1%

0.0%1.5%

1.6%3.1%

3.2%4.7%

4.8%Over

Num

ber

of P

rope

rtie

s

515 Negative Growth 1237Positive Growth

As of 09/30/06 Qtr Ending 09/30/06

Section 2 - Rent Growth Comparisons

Asking Rent Growth

Quarterly Annualized

3Q06 2Q06 YTD Avg 1 Year 3 Year 5 Year 5 Yr Forecast

Chicago 0.9% 0.1% 0.6% - 0.1% - 1.4% - 1.3% 2.7%

Midwest 0.4% 0.1% 0.4% - 0.0% - 1.0% - 1.0% 2.2%

United States 1.8% 1.6% 1.6% 2.6% - 0.6% - 2.1% 3.9%Average over period ending: 09/30/06 06/30/06 09/30/06 12/31/05 12/31/05 12/31/05 12/31/10

Metro Rank Total Metro RanksCompared to: Metros

3Q06 2Q06 YTD 1 Year 3 Year 5 Year 5 Yr Forecast

Midwest 13 6 9 5 9 12 12 2United States 75 50 67 55 68 65 65 50

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

-4.0

-2.0

0.0

2.0

4.0

6.0

Chicago

Midwest

US

Asking Rent Growth Rate Trends and Forecast%

Period ending 12/31/10


Metro: Chicago


Section 3 - Current Metro Vacancy Details

Vacancy Rate By Age Vacancy Rate Distribution

Year Built Vac. Rate

Before 1970 16.0%

1970-1979 19.1%

1980-1989 18.8%

1990-1999 17.0%

After 1999 15.9%

All 17.6%

As of 09/30/06


0.0% 5.3% 17.6% 13.4% 23.0% 59.4%

582

257201

164122 93 73

260

Under5.0%

5.1%10.0%

10.1%15.0%

15.1%20.0%

20.1%25.0%

25.1%30.0%

30.1%35.0%

35.1%Over

Num

ber

of P

rope

rtie

s

As of 09/30/06

Section 4 - Vacancy Rate Comparisons

Vacancy Rates



Chicago 17.6% 18.0% 18.0% 18.9% 18.8% 16.6% 15.5%

Midwest 17.7% 17.9% 17.9% 18.5% 18.3% 16.4% 15.4%

United States 13.5% 13.8% 13.8% 15.5% 16.0% 14.3% 12.1%Average over period ending: 09/30/06 06/30/06 09/30/06 12/31/05 12/31/05 12/31/05 12/31/10




2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

12.0

14.0

16.0

18.0Chicago

Midwest

US

Vacancy Rate Trends and Forecast%



Metro: Chicago


Section 5 - Metro Inventory Detail

Inventory By Building Age Office Stock Traits

Year Built Percent

Before 1970 24.0%

1970-1979 18.0%

1980-1989 36.0%

1990-1999 12.0%

After 1999 10.0%

All 100.0%

As of 09/30/06

MetroLow Mean Median High

Size (units) 15,000 129,409 56,000 750,000Distance to Highway (miles) 0 0.2 0.2 0.8

Distance to CBD (miles) 0.2 17.5 19.7 36.2Distance to Landmark (miles) 0.4 12.3 11.3 32.3

As of 09/30/06 Landmark =Lake Michigan

Current Inventory LevelProperties Square Feet

1,828 227,901,000As of 09/30/06Average Metro Lease Terms

CRD % Free Rent(mos)

Expenses $(Commercial)

Lease Term(yrs)

LeasingCommission %

TenantImprovements $

- 6.6% 2.4 $10.92 6.1 4.1% $21.32

Section 6 - Inventory Growth Comparison

Inventory Growth Rates



Chicago - 0.1% 0.3% 0.0% 0.1% 0.1% 0.9% 0.9%

Midwest - 0.2% 0.1% - 0.1% - 0.2% 0.1% 0.8% 1.0%

United States - 0.1% 0.0% - 0.1% - 0.0% 0.4% 1.1% 1.4%Average over period ending: 09/30/06 06/30/06 09/30/06 12/31/05 12/31/05 12/31/05 12/31/10




2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0.0

0.5

1.0

1.5

2.0

2.5

Chicago

Midwest

US

Inventory Growth Comparisons and Forecast%



Metro: Chicago


Section 7 - Construction/Absorption Change

Construction and Absorption

Quarterly

3Q06 2Q06 YTD Avg

Sq Ft Built Sq FtAbsorbed

Con/AbsRatio Sq Ft Built Sq Ft

AbsorbedCon/Abs

Ratio Sq Ft Built Sq FtAbsorbed

Con/AbsRatio

Chicago 0 613,000 0.0 1,031,000 1,436,000 0.7 451,333 877,000 0.5

Midwest 809,000 574,000 1.4 2,594,000 1,484,000 1.7 1,557,667 658,333 2.4Average over period ending: 09/30/06 09/30/06 09/30/06 06/30/06 06/30/06 06/30/06 09/30/06 09/30/06 09/30/06

Annualized

1 Year History 3 Year History 5 Year History



AbsorbedCon/Abs


Con/AbsRatio

Chicago 2,291,000 1,130,000 2.0 1,720,000 -161,000 -10.7 3,171,800 -2,729,800 -1.2

Midwest 5,859,000 2,468,000 2.4 5,371,333 -637,667 -8.4 9,408,800 -6,316,000 -1.5Average over period ending: 12/31/05 12/31/05 12/31/05 12/31/05 12/31/05 12/31/05 12/31/05 12/31/05 12/31/05

Annualized

5 Year Forecast


Con/AbsRatio

Chicago 2,270,800 4,227,200 0.5

Midwest 7,865,400 12,706,600 0.6Average over period ending: 12/31/10 12/31/10 12/31/10

-10,000,000

-5,000,000

0

5,000,000

Squ

are

Fee

t

2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

5

10

15

20

Vac

ancy

Rat

e (%

)Construction/Absorption and Vacancy

Vacancy Rate Construction Absorption



Metro: Chicago


Section 8 - Submarket New Construction Project Tally

Sq Ft Sq Ft Sq Ft Sq Ft 2006 - 2008

Rank Submarket 2005 2006 2007 2008 Sq Ft Market Share CumulativeMarket share

1 West 50,000 231,324 1,124,821 1,418,857 2775002 42.6% 42.6%

2 West Loop 1,020,000 479,000 0 400,000 879000 13.5% 56.0%

3 NW Suburbs 98,069 0 312,168 417,700 729868 11.2% 67.2%

4 Southwest 0 189,000 92,500 160,000 441500 6.8% 74.0%

5 99-Balance 0 0 0 440,000 440000 6.7% 80.7%

6 City West 0 430,000 0 0 430000 6.6% 87.3%

7 North 16,400 45,800 363,739 0 409539 6.3% 93.6%

8 Central Loop 820,915 0 0 400,000 400000 6.1% 99.8%

9 O'Hare Area 22,000 16,000 0 0 16000 0.2% 100.0%

As of 09/30/06, based on actual projects (totals may differ from Reis Metro/SubTrend Futures)


Metro: Chicago


Section 9 - New Construction Listing

No. Property Name and Address Secondary Type County Submarket Size (SqFt)

Est.Completion Status

1HSBC NORTH AMERICA HOLDINGSRIVERWOODS RD @ TOWNE LINE RDMETTAWA, IL 60045

Office LAKE 99-Balance 440,000 1/2008 2.Under Constr.

2BLOCK 37108 N STATE ST @ E RANDOLPHST/WASHINGTON ST CHICAGO, IL 60602

Office COOK Central Loop 400,000 3/2008 2.Under Constr.

3 ONE SOUTH DEARBORN1 S DEARBORN ST CHICAGO, IL 60603

Office COOK Central Loop 820,915 12/2005 1.Complete

4WATERVIEW TOWER111 W WACKER DR @ N CLARK ST CHICAGO,IL 60601

Office Condominiums COOK Central Loop 215,000 3/2009 2.Under Constr.

52111 W ROOSEVELT RD2111 W ROOSEVELT RD @ N DAMEN AVECHICAGO, IL 60612

Office COOK City West 430,000 4/2006 1.Complete

6CHATHAM OFFICE CENTER PH II1901 N ROSELLE RD @ I-90 SCHAUMBURG, IL60195

Office COOK NW Suburbs 205,000 4.Proposed

7 CROSSROADS OF DARIEN PH IILAMONT RD @ HWY 83 ELMHURST, IL 60126

Office DUPAGE NW Suburbs 20,700 3/2008 3.Planned

8 LAKEWOODS CORPORATE CENTER PH II680 E ALGONGUIN RD SCHAUMBURG, IL 60173

Office COOK NW Suburbs 150,000 3.Planned

9PROSPECT POINTEPROSPECT AVE @ THORNDALE AVE ITASCA,IL 60143

Office Condominiums DUPAGE NW Suburbs 48,000 6/2006 1.Complete

10WOODLAND FALLS PH II26225 N RIVERWOODS BLV @ W EVERETT RDMETTAWA, IL 60045

Office LAKE NW Suburbs 156,160 12/2007 2.Under Constr.

11DEER PARK PH II21850 LAKE COOK RD @ N HOUGH ST DEERPARK, IL 60010

Office LAKE NW Suburbs 80,000 8/2007 3.Planned

12POPLAR CREEK OFFICE PLAZA IIMOONLAKE BLVD. @ HIGGINS RD. HOFFMANESTATES, IL 60194

Office COOK NW Suburbs 187,000 10/2008 3.Planned

13SCHAUMBURG OFFICE CENTER1998 N ROSELLE RD & I 90 SCHAUMBURG, IL60043

Office COOK NW Suburbs 115,000 4.Proposed

14HE ESPLANADE OF ALGONQUIN OFFICE PH III2300 S RANDALL RD @ CORPORATE BLVDALGONQUIN, IL 60102

Office MCHENRY NW Suburbs 60,000 12/2008 3.Planned

15POPLAR CREEK OFFICE PLAZA IIIMOONLAKE BLVD @ HIGGINS RD HOFFMANESTATES, IL 60194

Office COOK NW Suburbs 187,000 6/2010 4.Proposed

16LAKE ZURICH PROFESSIONAL CENTER350 SURRYSE RD @ OLD RAND RD LAKEZURICH, IL 60047

Medical Office LAKE NW Suburbs 32,000 12/2006 2.Under Constr.


Metro: Chicago




17PARCEL 54200 LAKEVIEW PKWY @ RTE 60 VERNONHILLS, IL 60061

Office LAKE NW Suburbs 76,008 10/2007 3.Planned

18

SUPERIOR AIR GROUND AMBULANCESERVICE BLDG395 W LAKE ST @ N WALNUT ST ELMHURST, IL60126

Office--Owner Occ. DUPAGE NW Suburbs 100,000 10/2006 2.Under Constr.

19 LAKEVIEW BUSINESS CENTER PH II921 PINGREE RD CRYSTAL LAKE, IL 60014

Office MCHENRY NW Suburbs 28,000 10/2005 1.Complete

20 OAK TRAIL PROFESSIONAL CENTER260 ARMY TRAIL RD BARTLETT, IL 60103

Office DUPAGE NW Suburbs 17,969 3/2005 1.Complete

21 RANDALL POINT EXECUTIVE CTR2130 POINT BLVD ELGIN, IL 60123

Office KANE NW Suburbs 40,100 3/2005 1.Complete

22WILLOW PONDS PROFESSIONAL CENTERBLDG II950 S RAND RD LAKE ZURICH, IL 60047

Office LAKE NW Suburbs 12,000 6/2005 1.Complete

23NORTH BARRINGTON OFFICE CONDOSUS HWY 12 @ TIMBER LAKE DR NORTHBARRINGTON, IL 60010

Office Condominiums LAKE NW Suburbs 26,250 7/2005 1.Complete

24BRIARWOOD OFFICE COMPLX BLDG CMERCHANT DR @ HUNTINGTONDR/GLENWOOD CT ALGONQUIN, IL 60102

Office Condominiums MCHENRY NW Suburbs 17,000 5/2006 1.Complete

25 WOODFIELD PRESERVE OFFICE CENTER III30 N MARTINGALE RD SCHAUMBURG, IL 60173

Office COOK NW Suburbs 150,000 8/2008 3.Planned

26COMMERCE WOODS BUSINESS CENTER800 COMMERCE PKWY CARPENTERSVILLE, IL60110

Office KANE NW Suburbs 85,544 3.Planned

27 WESTLAKE AT CONWAYI-94 @ RTE 60 LAKE FOREST, IL 60045

Office LAKE North 100,000 12/2007 3.Planned

28RIVERWOODS CORPORATE CENTERLAKE COOK RD @ I-94/SAUNDERSRIVERWOODS, IL 60015

Office LAKE North 45,800 5/2006 1.Complete

29CADENCE AT CONWAYN FIELD CT @ STATE HWY 60 LAKE FOREST, IL60045

Office LAKE North 102,739 5/2007 3.Planned

30 OPUS LANDMARK OF LAKEFOREST II150 SAUNDERS RD LAKE FOREST, IL 60045

Office LAKE North 161,000 7/2007 2.Under Constr.

31LIBERTYVILLE PROFESSIONAL CENTRE1635 NORTHWIND BLVD @ RTE 45/PETERSONRD LIBERTYVILLE, IL 60048

Office LAKE North 16,400 11/2005 1.Complete

32METROPOLITAN SQUARES DES PLAINES AVE @ PERRY ST/S RIVER RDDES PLAINES, IL 60016

Office COOK O'Hare Area 22,000 8/2005 1.Complete

33 POINT O'HARE PH II9550 W HIGGINS RD ROSEMONT, IL 60018

Office COOK O'Hare Area 330,000 2/2009 3.Planned


Metro: Chicago




34TUSCANNY TERRACE6400 N NORTHWEST HWY @ N HARLEM AVECHICAGO, IL 60631

Office COOK O'Hare Area 16,000 12/2006 2.Under Constr.

35300 N LASALLE300 N LASALLE BLVD @ KINZIE ST CHICAGO,IL 60610

Office COOK River North 1,300,000 3/2009 2.Under Constr.

36 RIVER NORTH CENTERCLARK ST @ HUBBARD CHICAGO, IL 60610

Office COOK River North 330,000 4.Proposed

37351 NORTH CLARK BUILDING351 N CLARK ST @ W KINZE ST/DEARBORN STCHICAGO, IL 60610

Office COOK River North 1,300,000 1/2009 3.Planned

38WACKER PLAZA401 S WACKER ST @ CONGRESS PKWYCHICAGO, IL 60607

Office COOK South Loop 673,000 12/2009 3.Planned

39 CORPORATE CORRIDORS OF MOKENA PH IIW 191ST ST @ S 88TH AVE MOKENA, IL 60488

Office WILL Southwest 50,000 3/2008 3.Planned

40 CORPORATE CORRIDORS OF MOKENA PH IIIW 191ST ST @ S 88TH AVE MOKENA, IL 60488

Office WILL Southwest 50,000 8/2007 2.Under Constr.

41 BURR RIDGE CORPORATE PARK BLDG II945 MCCLINTOCK DR LA GRANGE, IL 60527

Office COOK Southwest 110,000 3/2008 3.Planned

42ORLAND CROSSINGW 143RD ST @ S LA GRANGE RD ORLANDPARK, IL 60462

Office COOK Southwest 21,000 11/2006 2.Under Constr.

43WOODRIDGE COMMERCE CENTER10204-10216 WERCH DR @ WOODWARD AVEWOODRIDGE, IL 60517

Office DUPAGE Southwest 148,000 3/2006 1.Complete

44 CORPORATE CORRIDORS OF MOKENA PH IW 191ST ST @ S 88TH AVE MOKENA, IL 60488


45PROVENA MEDICAL BUILDING7000 CATON FARM RD @ COUNTY LINE RDJOLIET, IL 60431

Medical Office WILL Southwest 35,000 5/2006 1.Complete

46 CORPORATE CORRIDORS OF MOKENA PH IVW 191ST ST @ S 88TH AVE MOKENA, IL 60488

Office WILL Southwest 50,000 7/2009 4.Proposed

47HOMER GLEN PLAZAS BELL RD @ W 159TH ST HOMER GLEN, IL60491


48PRAIRIE CENTER OFFICE450 E ROOSEVELT RD @ S LAKE SHORE DRCHICAGO, IL 60605

Office COOK Southwest 20,000 2/2006 1.Complete

49 CORPORETUM OFFICE TOWER I1401 CORPORETUM DR LISLE, IL 60532

Office DUPAGE West 189,000 5/2009 3.Planned

50 CORPORETUM OFFICE TOWER II1450 CORPORETUM DR LISLE, IL 60532

Office DUPAGE West 365,000 3.Planned


Metro: Chicago




51CENTRAL PARK OF LISLE IIIWARRENVILLE RD & 4 NAPERVILLE RD LISLE,IL 60532

Office DUPAGE West 303,000 4.Proposed

52 280 EAST 22ND STREET280 E 22ND ST LOMBARD, IL 60148


53OFFICES AT WYNDHAM LAKE1285 WINDHAM PKWY @ I-55/WEBER RDROMEOVILLE, IL 60441

Office WILL West 47,500 3.Planned

54HIGHLAND LANDMARK PH VHIGHLAND PRKWY @ 31ST ST DOWNERSGROVE, IL 60515


55ESPLANADE VI3450 LACEY RD @ WOOD CEEK DR DOWNERSGROVE, IL 60515


561247 W 75TH ST1247 W 75TH ST @ PLAINFIELD NAPERVILLENAPERVILLE, IL 60540


57MCDOWELL POINT1420 W DIEHL RD @ RAYMOND DR/WALL STNAPERVILLE, IL 60563


58 4455 WEAVER PKWY @ DIEHL RDWARRENVILLE, IL 60555


592011 YORK CENTER2011 YORK RD @ CLEARWATER DR OAKBROOK, IL 60523


60CREEKSIDE CORPORATE CENTER BLDG VREMINGTON BLVD @ QUADRANGLE DRBOLINGBROOK, IL 60440

Office WILL West 30,000 3.Planned

61EAST WILSON STREET BUSINESS PARK BLDGIII1013 E WILSON ST BATAVIA, IL 60510

Office Condominiums KANE West 15,000 4/2007 3.Planned

62THE CORRIDORS PH IVFINLEY RD @ BUTTERFIELD RD DOWNERSGROVE, IL 60515


63THE CORRIDORS PH VFINLEY RD @ BUTTERFIELD RD DOWNERSGROVE, IL 60515


64CORPORETUM OFFICE CAMPUS VIIWARRENVILLE RD @ IVANHOE AVE LISLE, IL60532


65CORPORETUM OFFICE CAMPUS VIIIWARRENVILLE RD @ IVANHOE AVE LISLE, IL60532


66CORPORETUM OFFICE CAMPUS IXWARRENVILLE RD @ IVANHOE AVE LISLE, IL60532


67 WHITE OAKS OFFICE PARKEOLA RD @ I 88 E AURORA, IL 60504

Office DUPAGE West 330,000 7/2009 4.Proposed


Metro: Chicago




68 MIDPOINT III7145 JANES AVE WOODRIDGE, IL 60517


69DODSON PLACE PH II400-500 S 3RD ST @ SOUTH ST GENEVA, IL60134

Office KANE West 29,000 3.Planned

70ESTANCIA CORPORATE CENTER BLG II PH I150 HARVESTER DR @ N FRONTAGE RD BURRRIDGE, IL 60527

Office DUPAGE West 110,000 3/2006 1.Complete

71CLEAR CHANNEL COMMUNICATIONS4255 MERIDIAN PKWY @ STATE HWY 59AURORA, IL 60504

Office--Owner Occ. DUPAGE West 44,120 9/2005 1.Complete

72ROLLINGRIDGE CENTER2940 ROLLINGRIDGE DR @ US HWY 59NAPERVILLE, IL 60564

Medical Office WILL West 40,000 3/2005 1.Complete

73BAY SCOTT CENTERRICKERT DR @ PLAINFIELD RD/75TH STNAPERVILLE, IL 60540

Medical Office DU PAGE West 10,000 1/2005 1.Complete

74MCCARTNEY CENTERMEADOWRIDGE DR @ 75TH ST AURORA, IL60540

Office Condominiums DUPAGE West 86,400 3.Planned

75ESTANCIA CORPORATE CENTER BLG I PH I180 HARVESTER DR @ N FRONTAGE RD BURRRIDGE, IL 60521


76 BURR RIDGE TOWN CENTERI-55 @ COUNTY LINE RD BURR RIDGE, IL 60527


77BROOKDALE GATEWAY BLDGS 5,6 (LOT 7,4)BOND ST @ BROOKDALE RD NAPERVILLE, IL60503


78ESTANCIA CORPORATE CENTER BLG III PH 3160 HARVESTER DR @ S MADISON BURRRIDGE, IL 60527


79WINFIELD TOWNE CENTER IWINFIELD RD @ HIGH LAKES RD WINFIELD, IL60190


80 MOSER PLAZAS MAIN ST @ WATER ST NAPERVILLE, IL 60540


81ORCHARD CORRIDOR OFFICE PARK ISULLIVAN RD @ BOWMAN DR AURORA, IL60506

Office Condominiums DUPAGE West 80,000 10/2006 2.Under Constr.

82WASHINGTON PLACE123 WASHINGTON ST (RTE 34) @ RTE 31OSWEGO, IL 60543

Office KENDALL West 30,000 5/2006 1.Complete

83REGENCY OFFICE PARK PH 1DIEHL RD @ NAPERVILLE RD NAPERVILLE, IL60563

Office Condominiums DUPAGE West 55,000 3.Planned

84OGDEN PROFESSIONAL CENTER PH I750 SHORELINE DR @ OGDEN AVE AURORA,IL 60504



Metro: Chicago




85OGDEN PROFESSIONAL CENTER PH II BLDG 2SHORELINE DR @ OGDEN AVE AURORA, IL60504

Office DUPAGE West 10,000 3/2007 2.Under Constr.

86IVANHOE WOODS505-515 WARRENVILLE RD @ I-88 LISLE, IL60532


87REGENCY OFFICE PARK PH IIDIEHL RD @ NAPERVILLE RD NAPERVILLE, IL60563

Office Condominiums DUPAGE West 55,000 11/2007 4.Proposed

881551 E FABYAN PKWY1551 E FABYAN PKWY @ KIRK RD GENEVA, IL60134

Office KANE West 10,200 6/2006 1.Complete

89 METRO COMMONS OFFICE PROJECTI-290 @ MANNHEIM RD HILLSIDE, IL 60162

Office COOK West 216,000 12/2007 3.Planned

90ONE WALKER1 WALKER AVE @ S PROSPECT AVECLARENDON HILLS, IL 60514


91THE SHOPPES OF WEBER RD (OFFICE)115TH ST @ S WEBER RD BOLINGBROOK, IL60490

Office WILL West 23,821 8/2007 3.Planned

92LEGACY BUSINESS CENTER PH ISWENSON AVE @ TYLER RD ST CHARLES, IL60174

Office KANE West 250,000 7/2007 2.Under Constr.

93LEGACY BUSINESS CENTER PH IISWENSON AVE @ E TYLER RD ST CHARLES,IL 60174

Office KANE West 250,000 12/2007 3.Planned

94 CITYGATE CENTER PH II-88 @ RTE 59 NAPERVILLE, IL 60540

Office DUPAGE West 213,000 6/2007 2.Under Constr.

95

OGDEN PROFESSIONAL CENTER PH III BLDG3SHORELINE DR @ OGDEN AVE AURORA, IL60504


96

OGDEN PROFESSIONAL CENTER PH IV BLDG4SHORELINE DR @ OGDEN AVE AURORA, IL60504


97OGDEN PROFESSIONAL CENTER PH V BLDG 5SHORELINE DR @ OGDEN AVE AURORA, IL60504


98

OGDEN PROFESSIONAL CENTER PH VI BLDG6SHORELINE DR @ OGDEN AVE AURORA, IL60504


99 301 S WACKER DR301 S WACKER DR CHICAGO, IL 60606

Office COOK West Loop 1,250,000 3.Planned

100 200 N RIVERSIDELAKE @ CANAL STREET CHICAGO, IL 60606

Office COOK West Loop 1,200,000 8/2010 3.Planned

101 CENTURY PLACE II550 W ADAMS ST CHICAGO, IL 60661

Office COOK West Loop 479,000 6/2006 1.Complete


Metro: Chicago




102155 N WACKER DR155 N WACKER DR @ W RANDOLPH STCHICAGO, IL 60606

Office COOK West Loop 1,000,000 6/2009 2.Under Constr.

103 111 S WACKER DR CHICAGO, IL 60606 Office COOK West Loop 1,020,000 6/2005 1.Complete

104 120 N JEFFERSON ST @ W WASHINGTONBLVD CHICAGO, IL 60661

Office COOK West Loop 400,000 10/2008 4.Proposed

105 601 W MONROE ST @ S JEFFERSON STCHICAGO, IL 60660

Office COOK West Loop 600,000 4.Proposed

106 ABN AMRO PLAZA TOWER II560 W MADISON ST CHICAGO, IL 60661

Office--Owner Occ. COOK West Loop 1,200,000 4.Proposed


Metro: Chicago


Section 10 - Market Data by Building Class - Class A Properties

Year Quarter Inventory(Sq Ft) Completions Vac % Vacant Stock Occupied

Stock Net Abs AskingRent($)

RentChange

Constr/Abs

Abs/OccStock %

Gr Rev.Unit ($)

1990 Y 84,434,000 6,931,000 16.6% 14,004,000 70,430,000 3,313,000 $32.77 2.1% 2.1 4.7 $27.33

1991 Y 86,304,000 1,870,000 17.1% 14,780,000 71,524,000 1,094,000 $32.11 - 2.0% 1.7 1.5 $26.61

1992 Y 90,828,000 4,524,000 20.5% 18,643,000 72,185,000 661,000 $29.84 - 7.1% 6.8 0.9 $23.72

1993 Y 91,031,000 203,000 18.4% 16,717,000 74,314,000 2,129,000 $28.48 - 4.6% 0.1 2.9 $23.25

1994 Y 91,031,000 0 15.5% 14,135,000 76,896,000 2,582,000 $27.03 - 5.1% 0.0 3.4 $22.83

1995 Y 91,091,000 60,000 12.7% 11,540,000 79,551,000 2,655,000 $25.90 - 4.2% 0.0 3.3 $22.62

1996 Y 91,313,000 222,000 10.7% 9,744,000 81,569,000 2,018,000 $26.56 2.5% 0.1 2.5 $23.73

1997 Y 91,713,000 400,000 8.4% 7,741,000 83,972,000 2,403,000 $28.03 5.5% 0.2 2.9 $25.66

1998 Y 92,761,000 1,048,000 7.2% 6,701,000 86,060,000 2,088,000 $30.09 7.3% 0.5 2.4 $27.92

1999 Y 93,698,000 937,000 7.0% 6,572,000 87,126,000 1,066,000 $31.58 5.0% 0.9 1.2 $29.36

2000 Y 96,060,000 2,362,000 5.7% 5,471,000 90,589,000 3,463,000 $33.50 6.1% 0.7 3.8 $31.59

2001 Y 99,019,000 2,959,000 13.0% 12,888,000 86,131,000 -4,458,000 $32.75 - 2.2% -0.7 -5.2 $28.49

2002 1 99,452,000 433,000 13.9% 13,864,000 85,588,000 -543,000 $32.76 0.0% -0.8 -0.6 $28.19

2002 2 99,616,000 164,000 14.6% 14,518,000 85,098,000 -490,000 $32.35 - 1.3% -0.3 -0.6 $27.64

2002 3 100,332,000 716,000 15.5% 15,598,000 84,734,000 -364,000 $32.10 - 0.8% -2.0 -0.4 $27.11

2002 4 101,838,000 2,032,000 16.1% 16,377,000 85,461,000 727,000 $31.79 - 1.0% 2.8 0.9 $26.68

2002 Y 101,838,000 3,345,000 16.1% 16,377,000 85,461,000 -670,000 $31.79 - 2.9% -5.0 -0.8 $26.68

2003 1 101,838,000 0 15.6% 15,918,000 85,920,000 459,000 $31.77 - 0.1% 0.0 0.5 $26.80

2003 2 101,914,000 76,000 16.1% 16,403,000 85,511,000 -409,000 $31.53 - 0.8% -0.2 -0.5 $26.46

2003 3 101,914,000 0 16.2% 16,555,000 85,359,000 -152,000 $31.03 - 1.6% 0.0 -0.2 $25.99

2003 4 101,914,000 0 16.4% 16,714,000 85,200,000 -159,000 $30.74 - 0.9% 0.0 -0.2 $25.70

2003 Y 101,914,000 76,000 16.4% 16,714,000 85,200,000 -261,000 $30.74 - 3.3% -0.3 -0.3 $25.70

2004 1 101,697,000 0 16.5% 16,797,000 84,900,000 -300,000 $30.48 - 0.8% 0.0 -0.4 $25.45

2004 2 101,697,000 0 16.4% 16,721,000 84,976,000 76,000 $30.33 - 0.5% 0.0 0.1 $25.34

2004 3 101,697,000 0 16.8% 17,106,000 84,591,000 -385,000 $30.42 0.3% 0.0 -0.5 $25.30

2004 4 103,197,000 1,500,000 17.7% 18,237,000 84,960,000 369,000 $30.37 - 0.2% 4.1 0.4 $25.00

2004 Y 103,197,000 1,500,000 17.7% 18,237,000 84,960,000 -240,000 $30.37 - 1.2% -6.3 -0.3 $25.00

2005 1 103,197,000 0 17.8% 18,325,000 84,872,000 -88,000 $30.05 - 1.1% 0.0 -0.1 $24.71

2005 2 104,217,000 1,020,000 17.9% 18,609,000 85,608,000 736,000 $30.21 0.5% 1.4 0.9 $24.82

2005 3 104,217,000 0 18.0% 18,734,000 85,483,000 -125,000 $30.29 0.3% 0.0 -0.1 $24.85

2005 4 105,302,000 1,085,000 18.1% 19,035,000 86,267,000 784,000 $30.16 - 0.4% 1.4 0.9 $24.71

2005 Y 105,302,000 2,105,000 18.1% 19,035,000 86,267,000 1,307,000 $30.16 - 0.7% 1.6 1.5 $24.71

2006 1 105,319,000 17,000 17.2% 18,090,000 87,229,000 962,000 $30.46 1.0% 0.0 1.1 $25.23

2006 2 106,274,000 955,000 16.7% 17,764,000 88,510,000 1,281,000 $30.42 - 0.1% 0.7 1.4 $25.34


Metro: Chicago




RentChange

Constr/Abs

Abs/OccStock %

Gr Rev.Unit ($)

2006 3 106,274,000 0 16.7% 17,742,000 88,532,000 22,000 $30.71 1.0% 0.0 0.0 $25.58


Metro: Chicago


Section 11 - Market Data by Building Class - Class B/C Properties



RentChange

Constr/Abs

Abs/OccStock %

Gr Rev.Unit ($)

1990 Y 113,694,000 1,616,000 19.7% 22,410,000 91,284,000 -419,000 $20.02 - 0.2% -3.9 -0.5 $16.07

1991 Y 114,683,000 989,000 20.7% 23,787,000 90,896,000 -388,000 $19.41 - 3.0% -2.5 -0.4 $15.38

1992 Y 115,020,000 337,000 21.7% 24,924,000 90,096,000 -800,000 $18.05 - 7.0% -0.4 -0.9 $14.14

1993 Y 115,316,000 296,000 21.9% 25,261,000 90,055,000 -41,000 $17.85 - 1.1% -7.2 0.0 $13.94

1994 Y 115,656,000 340,000 19.2% 22,233,000 93,423,000 3,368,000 $16.83 - 5.7% 0.1 3.6 $13.59

1995 Y 115,519,000 228,000 17.0% 19,642,000 95,877,000 2,454,000 $16.58 - 1.5% 0.1 2.6 $13.76

1996 Y 115,402,000 310,000 15.0% 17,341,000 98,061,000 2,184,000 $17.08 3.0% 0.1 2.2 $14.51

1997 Y 114,989,000 791,000 12.8% 14,680,000 100,309,000 2,248,000 $17.77 4.0% 0.4 2.2 $15.50

1998 Y 116,882,000 1,893,000 11.5% 13,436,000 103,446,000 3,137,000 $19.12 7.6% 0.6 3.0 $16.92

1999 Y 119,865,000 3,401,000 10.9% 13,052,000 106,813,000 3,367,000 $20.33 6.3% 1.0 3.2 $18.12

2000 Y 122,157,000 2,414,000 11.4% 13,935,000 108,222,000 1,409,000 $20.95 3.0% 1.7 1.3 $18.56

2001 Y 125,045,000 3,336,000 17.4% 21,735,000 103,310,000 -4,912,000 $21.06 0.5% -0.7 -4.8 $17.40

2002 1 125,211,000 385,000 18.8% 23,600,000 101,611,000 -1,699,000 $20.99 - 0.3% -0.2 -1.7 $17.03

2002 2 125,203,000 201,000 19.4% 24,304,000 100,899,000 -712,000 $21.10 0.5% -0.3 -0.7 $17.00

2002 3 125,158,000 160,000 19.7% 24,621,000 100,537,000 -362,000 $21.13 0.1% -0.4 -0.4 $16.97

2002 4 125,247,000 313,000 20.0% 25,064,000 100,183,000 -354,000 $21.05 - 0.4% -0.9 -0.4 $16.84

2002 Y 125,247,000 1,059,000 20.0% 25,064,000 100,183,000 -3,127,000 $21.05 0.0% -0.3 -3.1 $16.84

2003 1 124,592,000 177,000 20.2% 25,191,000 99,401,000 -782,000 $21.00 - 0.2% -0.2 -0.8 $16.75

2003 2 124,601,000 62,000 20.5% 25,492,000 99,109,000 -292,000 $20.80 - 1.0% -0.2 -0.3 $16.54

2003 3 124,329,000 138,000 20.7% 25,709,000 98,620,000 -489,000 $20.55 - 1.2% -0.3 -0.5 $16.30

2003 4 124,568,000 239,000 21.0% 26,122,000 98,446,000 -174,000 $20.47 - 0.4% -1.4 -0.2 $16.18

2003 Y 124,568,000 616,000 21.0% 26,122,000 98,446,000 -1,737,000 $20.47 - 2.8% -0.4 -1.8 $16.18

2004 1 124,673,000 150,000 21.0% 26,189,000 98,484,000 38,000 $20.39 - 0.4% 3.9 0.0 $16.11

2004 2 124,612,000 148,000 21.2% 26,368,000 98,244,000 -240,000 $20.22 - 0.8% -0.6 -0.2 $15.94

2004 3 124,185,000 122,000 21.0% 26,130,000 98,055,000 -189,000 $20.19 - 0.1% -0.6 -0.2 $15.94

2004 4 124,378,000 257,000 20.3% 25,307,000 99,071,000 1,016,000 $20.24 0.2% 0.3 1.0 $16.12

2004 Y 124,378,000 677,000 20.3% 25,307,000 99,071,000 625,000 $20.24 - 1.1% 1.1 0.6 $16.12

2005 1 123,659,000 58,000 19.9% 24,580,000 99,079,000 8,000 $20.15 - 0.4% 7.3 0.0 $16.14

2005 2 122,934,000 12,000 19.3% 23,702,000 99,232,000 153,000 $20.15 0.0% 0.1 0.2 $16.27

2005 3 122,796,000 22,000 19.2% 23,607,000 99,189,000 -43,000 $20.14 0.0% -0.5 0.0 $16.27

2005 4 122,500,000 94,000 19.3% 23,610,000 98,890,000 -299,000 $20.20 0.3% -0.3 -0.3 $16.31

2005 Y 122,500,000 186,000 19.3% 23,610,000 98,890,000 -181,000 $20.20 - 0.2% -1.0 -0.2 $16.31

2006 1 122,190,000 306,000 19.4% 23,678,000 98,512,000 -378,000 $20.28 0.4% -0.8 -0.4 $16.35

2006 2 121,895,000 76,000 19.1% 23,226,000 98,669,000 157,000 $20.30 0.1% 0.5 0.2 $16.43


Metro: Chicago




RentChange

Constr/Abs

Abs/OccStock %

Gr Rev.Unit ($)

2006 3 121,627,000 0 18.4% 22,370,000 99,257,000 588,000 $20.46 0.8% 0.0 0.6 $16.70


Metro: Chicago


Section 12 - Submarket Snapshot

Submarket Inventory(Buildings)

Inventory(Sq Ft)

AskingRent $ CRD % Vac % Free Rent

(mos)Expenses $

(Commercial)

LeaseTerm(yrs)

LeasingCommission

%

TenantImprovements

$

Central Loop 66 32,004,000 $28.07 - 4.8% 18.2% 2.7 $13.53 7.0 3.6% $27.16

East Loop 49 19,030,000 $27.18 - 6.2% 16.7% 2.9 $13.25 7.2 4.5% $27.89

West Loop 84 41,053,000 $31.00 - 6.3% 15.4% 2.7 $14.26 7.4 3.8% $28.39

South Loop 25 3,766,000 $25.46 - 7.3% 18.5% 1.9 $11.78 6.6 4.3% $18.03

N Michigan Ave 50 11,812,000 $30.45 - 6.5% 16.2% 3.1 $14.46 6.6 4.7% $26.37

River North 79 8,321,000 $23.34 - 4.6% 8.6% 2.1 $ 9.81 5.7 3.2% $14.64

North 244 17,345,000 $22.59 - 6.5% 16.1% 2.1 $ 8.67 4.8 4.0% $18.24

City North 38 2,392,000 $19.47 - 3.8% 7.5% 1.5 $ 7.57 5.0 2.9% $11.90

NW Suburbs 403 33,065,000 $21.34 - 8.1% 19.9% 2.1 $ 8.50 5.3 4.3% $13.57

O'Hare Area 91 13,672,000 $23.54 - 8.6% 20.4% 2.9 $10.67 5.3 4.9% $17.32

West 501 36,097,000 $21.53 - 7.3% 20.8% 1.9 $ 7.30 5.3 4.1% $17.36

City West 49 3,669,000 $18.38 - 6.9% 12.3% 2.2 $ 6.79 5.3 3.2% $14.51

Southwest 149 5,675,000 $18.16 - 7.0% 20.4% 1.9 $ 6.59 4.4 4.9% $14.25


Metro: Chicago


Section 13 - Economic and Demographic Trends

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

-2.0%

-1.0%

0.0%

1.0%

2.0%

Total Employment Office Employment

Chicago Employment Trends

Per

cent

age

Cha

nge

Provided by Economy.com, Period ending 12/31/10

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

-2.0%

-1.0%

0.0%

1.0%

Chicago Midwest US

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

Per

cent

age

Cha

nge


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

Population Avg. HH Income

Chicago Population/Household Growth Trends

Per

cent

age

Cha

nge



Metro: Chicago


Section 14 - Submarket Boundaries

Submarkets

1 Central Loop2 East Loop3 West Loop4 South Loop5 North Michigan Avenue6 River North7 North

8 City North9 Northwest Suburbs10 O'Hare Area11 West12 City West13 Southwest


Metro: Chicago


Section 15 - Metro Data

Year Qtr InventorySF/Units Completions Inventory

Growth% Vacant Stock VacancyRate

VacancyChange(%)

OccupiedStock

NetAbsorption Asking Rent Ask Rent %

Chg

2001 Y 224,064,000 6,295,000 2.7% 34,623,000 15.5% 6.6% 189,441,000 -9,368,000 $26.23 - 0.9%

2002 Y 227,085,000 4,404,000 1.3% 41,442,000 18.2% 2.7% 185,643,000 -3,798,000 $25.86 - 1.4%

2003 Y 226,482,000 692,000 - 0.3% 42,837,000 18.9% 0.7% 183,645,000 -1,998,000 $25.09 - 3.0%

2004 4 227,575,000 1,757,000 0.7% 43,545,000 19.1% 0.0% 184,030,000 1,386,000 $24.83 0.2%

2004 Y 227,575,000 2,177,000 0.5% 43,545,000 19.1% 0.2% 184,030,000 385,000 $24.83 - 1.0%

2005 1 226,856,000 58,000 - 0.3% 42,907,000 18.9% - 0.2% 183,949,000 -81,000 $24.65 - 0.7%

2005 2 227,151,000 1,032,000 0.1% 42,313,000 18.6% - 0.3% 184,838,000 889,000 $24.76 0.4%

2005 3 227,013,000 22,000 - 0.1% 42,341,000 18.7% 0.1% 184,672,000 -166,000 $24.80 0.2%

2005 4 227,802,000 1,179,000 0.3% 42,642,000 18.7% 0.0% 185,160,000 488,000 $24.81 0.0%

2005 Y 227,802,000 2,291,000 0.1% 42,642,000 18.7% - 0.4% 185,160,000 1,130,000 $24.81 - 0.1%

2006 1 227,509,000 323,000 - 0.1% 41,767,000 18.4% - 0.3% 185,742,000 582,000 $24.99 0.7%

2006 2 228,169,000 1,031,000 0.3% 40,991,000 18.0% - 0.4% 187,178,000 1,436,000 $25.01 0.1%

2006 3 227,901,000 0 - 0.1% 40,110,000 17.6% - 0.4% 187,791,000 613,000 $25.24 0.9%

2006 Y 227,998,000 1,451,000 0.1% 39,555,000 17.3% - 1.4% 188,443,000 3,283,000 $25.41 2.4%

2007 Y 229,822,000 1,824,000 0.8% 37,734,000 16.4% - 0.9% 192,088,000 3,645,000 $25.94 2.1%

2008 Y 232,557,000 2,735,000 1.2% 36,357,000 15.6% - 0.8% 196,200,000 4,112,000 $26.62 2.6%

2009 Y 235,726,000 3,169,000 1.4% 34,636,000 14.7% - 0.9% 201,090,000 4,890,000 $27.47 3.2%

2010 Y 237,901,000 2,175,000 0.9% 31,605,000 13.3% - 1.4% 206,296,000 5,206,000 $28.41 3.4%

Year Qtr EffectiveRent

Eff Rent %Chg Cons/ Abs Abs/Occ

Stock% Population Pop%Chg Employment Emp%

Chg Off Emp Off EmpPct Chg

Avg HHIncome

AHHI%Chg

2001 Y $21.71 - 4.0% -0.7 - 4.9% 7,736,140 0.8% 3,831,760 - 2.3% 1,234,770 - 2.1% $97,037 - 0.3%

2002 Y $21.38 - 1.5% -1.2 - 2.0% 7,783,260 0.6% 3,786,260 - 1.2% 1,224,724 - 0.8% $97,874 0.9%

2003 Y $20.31 - 5.0% -0.3 - 1.1% 7,829,560 0.6% 3,739,610 - 1.2% 1,217,728 - 0.6% $100,289 2.5%

2004 4 $19.93 0.2% 1.3 0.8% 7,869,250 0.1% 3,768,040 0.4% 1,234,485 0.7% $105,234 2.8%

2004 Y $19.93 - 1.9% 5.7 0.2% 7,869,250 0.5% 3,768,040 0.8% 1,234,485 1.4% $105,234 4.9%

2005 1 $19.76 - 0.9% -0.7 0.0% 7,876,680 0.1% 3,770,530 0.1% 1,236,842 0.2% $105,618 0.4%

2005 2 $19.90 0.7% 1.2 0.5% 7,882,730 0.1% 3,785,760 0.4% 1,242,912 0.5% $106,566 0.9%

2005 3 $19.93 0.2% -0.1 - 0.1% 7,894,970 0.2% 3,795,780 0.3% 1,248,215 0.4% $107,531 0.9%

2005 4 $20.00 0.4% 2.4 0.3% 7,908,170 0.2% 3,810,720 0.4% 1,256,471 0.7% $108,417 0.8%

2005 Y $20.00 0.4% 2.0 0.6% 7,908,170 0.5% 3,810,720 1.1% 1,256,471 1.8% $108,417 3.0%

2006 1 $20.18 0.9% 0.6 0.3% 7,918,790 0.1% 3,815,140 0.1% 1,260,543 0.3% $109,843 1.3%

2006 2 $20.35 0.8% 0.7 0.8% 7,931,250 0.2% 3,829,200 0.4% 1,270,643 0.8% $111,292 1.3%

2006 3 $20.65 1.5% 0.0 0.3% 7,943,660 0.2% 3,848,650 0.5% 1,277,164 0.5% $112,791 1.3%

2006 Y $20.80 4.0% 0.4 1.7% 7,953,380 0.6% 3,860,640 1.3% 1,281,733 2.0% $114,103 5.2%

2007 Y $21.54 3.6% 0.5 1.9% 7,999,350 0.6% 3,904,790 1.1% 1,297,831 1.3% $119,391 4.6%

2008 Y $22.35 3.8% 0.7 2.1% 8,048,150 0.6% 3,956,750 1.3% 1,317,894 1.5% $124,364 4.2%

2009 Y $23.31 4.3% 0.6 2.4% 8,103,430 0.7% 4,017,700 1.5% 1,339,572 1.6% $129,353 4.0%

2010 Y $24.38 4.6% 0.4 2.5% 8,157,230 0.7% 4,074,580 1.4% 1,360,256 1.5% $134,177 3.7%

Submarket Analysis


Metro: Chicago Submarket: North


Section 16 - Current Submarket Rent Details

Asking Rent by Age Asking Rent Distribution Asking Rent Growth Rate Distribution

Year Built Rent

Before 1970 $20.81

1970-1979 $21.44

1980-1989 $23.01

1990-1999 $24.14

After 1999 $24.50

All $22.59

As of 09/30/06


$13.50 $20.06 $22.59 $22.86 $25.26 $31.00

2228

5145

33

26

1015

Under$15.69

$15.70$17.88

$17.89$20.07

$20.08$22.26

$22.27$24.45

$24.46$26.64

$26.65$28.83

$28.84Over

Num

ber

of P

rope

rtie

s


- 2.6% 0.0% 1.4% 1.0% 2.3% 7.2%

1611

33

81

48

20

813

Under- 2.5%

- 2.4%- 1.3%

- 1.2%- 0.1%

0.0%1.1%

1.2%2.3%

2.4%3.5%

3.6%4.7%

4.8%Over

Num

ber

of P

rope

rtie

s

60 Negative Growth 170Positive Growth

As of 09/30/06 Qtr Ending 09/30/06

Section 17 - Rent Growth Comparisons

Asking Rent Growth



North 1.4% - 0.0% 0.6% 1.8% - 0.6% - 0.4% 2.9%

Chicago 0.9% 0.1% 0.6% - 0.1% - 1.4% - 1.3% 2.7%

Midwest 0.4% 0.1% 0.4% - 0.0% - 1.0% - 1.0% 2.2%

United States 1.8% 1.6% 1.6% 2.6% - 0.6% - 2.1% 3.9%Average over period ending: 09/30/06 06/30/06 09/30/06 12/31/05 12/31/05 12/31/05 12/31/10

Submarket Rank Total Submarket RanksCompared to: Subs


Chicago 13 4 10 8 3 2 3 8Midwest 103 20 66 37 30 53 50 21

United States 600 247 475 401 308 392 369 379

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

-4.0

-2.0

0.0

2.0

4.0

6.0

North

Chicago

Midwest

US

Asking Rent Growth Rate Trends and Forecast%





Section 18 - Current Submarket Vacancy Details

Vacancy Rate By Age Vacancy Rate Distribution

Year Built Vac. Rate

Before 1970 15.4%

1970-1979 15.9%

1980-1989 15.2%

1990-1999 11.5%

After 1999 22.0%

All 16.1%

As of 09/30/06


0.0% 2.5% 16.1% 9.8% 23.0% 63.2%

88

36 32

16 12 11 9

26

Under5.0%

5.1%10.0%

10.1%15.0%

15.1%20.0%

20.1%25.0%

25.1%30.0%

30.1%35.0%

35.1%Over

Num

ber

of P

rope

rtie

s

As of 09/30/06

Section 19 - Vacancy Rate Comparisons

Vacancy Rates



North 16.1% 17.0% 16.6% 17.5% 18.8% 17.2% 13.8%

Chicago 17.6% 18.0% 18.0% 18.9% 18.8% 16.6% 15.5%

Midwest 17.7% 17.9% 17.9% 18.5% 18.3% 16.4% 15.4%

United States 13.5% 13.8% 13.8% 15.5% 16.0% 14.3% 12.1%Average over period ending: 09/30/06 06/30/06 09/30/06 12/31/05 12/31/05 12/31/05 12/31/10



Chicago 13 5 6 6 6 6 8 4Midwest 103 42 52 45 52 68 66 35

United States 600 413 435 415 406 445 442 398

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

12.0

14.0

16.0

18.0

20.0

North

Chicago

Midwest

US

Vacancy Rate Trends and Forecast%





Section 20 - Submarket Inventory Detail

Inventory By Building Age Office Stock Traits

Year Built Percent

Before 1970 11.0%

1970-1979 19.0%

1980-1989 43.0%

1990-1999 18.0%

After 1999 8.0%

All 100.0%

As of 09/30/06

SubmarketLow Mean Median High

Year Built 1922 1980 1983 2001Size (Sq. ft.) 15,500 76,204 52,414 258,000

Distance to Highway (miles) 0 0.2 0.2 0.6Distance to CBD (miles) 10.7 21.1 21.4 36.7

Distance to Landmark (miles) 0.5 3.7 3.9 7As of 09/30/06 Landmark =Lake Michigan

Current Inventory LevelProperties Square Feet

North 244 17,345,000

Share of Metro 13.0% 8.0%As of 09/30/06Average Submarket Lease Terms

CRD % Free Rent(mos)

Expenses $(Commercial)

Lease Term(yrs)

LeasingCommission %

TenantImprovements $

- 6.5% 2.1 $ 8.67 4.8 4.0% $18.24

Section 21 - Inventory Growth Comparison

Inventory Growth Rates



North - 0.2% 0.0% - 0.2% - 0.3% - 0.0% 0.9% 0.4%

Chicago - 0.1% 0.3% 0.0% 0.1% 0.1% 0.9% 0.9%

Midwest - 0.2% 0.1% - 0.1% - 0.2% 0.1% 0.8% 1.0%

United States - 0.1% 0.0% - 0.1% - 0.0% 0.4% 1.1% 1.4%Average over period ending: 09/30/06 06/30/06 09/30/06 12/31/05 12/31/05 12/31/05 12/31/10



Chicago 13 11 4 10 8 6 5 8Midwest 103 88 19 76 70 66 55 67

United States 600 512 90 445 400 392 299 412

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

0.0

1.0

2.0

3.0North

Chicago

Midwest

US

Inventory Growth Comparisons and Forecast%





Section 22 - Construction/Absorption Change

Construction and Absorption

Quarterly

3Q06 2Q06 YTD Avg



AbsorbedCon/Abs


Con/AbsRatio

North 0 123,000 0.0 46,000 -47,000 -1.0 15,333 -35,000 -0.4

Chicago 0 613,000 0.0 1,031,000 1,436,000 0.7 451,333 877,000 0.5Average over period ending: 09/30/06 09/30/06 09/30/06 06/30/06 06/30/06 06/30/06 09/30/06 09/30/06 09/30/06

Annualized

1 Year History 3 Year History 5 Year History



AbsorbedCon/Abs


Con/AbsRatio

North 16,000 478,000 0.0 18,333 216,333 0.1 183,000 -115,200 -1.6

Chicago 2,291,000 1,130,000 2.0 1,720,000 -161,000 -10.7 3,171,800 -2,729,800 -1.2Average over period ending: 12/31/05 12/31/05 12/31/05 12/31/05 12/31/05 12/31/05 12/31/05 12/31/05 12/31/05

Annualized

5 Year Forecast


Con/AbsRatio

North 102,800 239,400 0.4

Chicago 2,270,800 4,227,200 0.5Average over period ending: 12/31/10 12/31/10 12/31/10

-1,000,000

-500,000

0

500,000

Squ

are

Fee

t

2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

5

10

15

20

Vac

ancy

Rat

e (%

)Construction/Absorption and Vacancy

Vacancy Rate Construction Absorption





Section 23 - Market Data by Building Class - Class A Properties



RentChange

Constr/Abs

Abs/OccStock %

Gr Rev.Unit ($)

1995 Y 3,197,000 0 8.2% 262,000 2,935,000 -79,000 $24.05 - 1.2% 0.0 -2.7 $22.08

1996 Y 3,197,000 0 4.9% 156,000 3,041,000 106,000 $24.06 0.0% 0.0 3.5 $22.89

1997 Y 3,197,000 0 8.3% 264,000 2,933,000 -108,000 $25.56 6.2% 0.0 -3.7 $23.45

1998 Y 3,197,000 0 4.3% 137,000 3,060,000 127,000 $27.06 5.9% 0.0 4.2 $25.90

1999 Y 3,397,000 200,000 8.0% 271,000 3,126,000 66,000 $27.42 1.3% 3.0 2.1 $25.23

2000 Y 3,397,000 0 7.4% 251,000 3,146,000 20,000 $27.94 1.9% 0.0 0.6 $25.88

2001 Y 3,456,000 59,000 14.2% 490,000 2,966,000 -180,000 $26.60 - 4.8% -0.3 -6.1 $22.83

2002 1 3,456,000 0 16.8% 581,000 2,875,000 -91,000 $27.09 1.8% 0.0 -3.2 $22.54

2002 2 3,456,000 0 17.5% 605,000 2,851,000 -24,000 $27.28 0.7% 0.0 -0.8 $22.50

2002 3 3,456,000 0 22.4% 775,000 2,681,000 -170,000 $26.99 - 1.1% 0.0 -6.3 $20.94

2002 4 3,456,000 0 20.9% 723,000 2,733,000 52,000 $26.54 - 1.7% 0.0 1.9 $20.99

2002 Y 3,456,000 0 20.9% 723,000 2,733,000 -233,000 $26.54 - 0.2% 0.0 -8.5 $20.99

2003 1 3,456,000 0 19.7% 682,000 2,774,000 41,000 $26.66 0.5% 0.0 1.5 $21.40

2003 2 3,456,000 0 21.0% 726,000 2,730,000 -44,000 $25.59 - 4.0% 0.0 -1.6 $20.21

2003 3 3,456,000 0 23.6% 817,000 2,639,000 -91,000 $24.89 - 2.7% 0.0 -3.4 $19.01

2003 4 3,456,000 0 24.0% 830,000 2,626,000 -13,000 $24.94 0.2% 0.0 -0.5 $18.95

2003 Y 3,456,000 0 24.0% 830,000 2,626,000 -107,000 $24.94 - 6.0% 0.0 -4.1 $18.95

2004 1 3,456,000 0 23.8% 821,000 2,635,000 9,000 $25.35 1.6% 0.0 0.3 $19.33

2004 2 3,456,000 0 24.0% 830,000 2,626,000 -9,000 $25.32 - 0.1% 0.0 -0.3 $19.24

2004 3 3,456,000 0 21.1% 729,000 2,727,000 101,000 $25.06 - 1.0% 0.0 3.7 $19.77

2004 4 3,456,000 0 23.1% 798,000 2,658,000 -69,000 $25.18 0.5% 0.0 -2.6 $19.37

2004 Y 3,456,000 0 23.1% 798,000 2,658,000 32,000 $25.18 1.0% 0.0 1.2 $19.37

2005 1 3,456,000 0 22.3% 770,000 2,686,000 28,000 $25.24 0.2% 0.0 1.0 $19.62

2005 2 3,456,000 0 21.5% 744,000 2,712,000 26,000 $25.68 1.7% 0.0 1.0 $20.15

2005 3 3,456,000 0 21.3% 737,000 2,719,000 7,000 $25.89 0.8% 0.0 0.3 $20.37

2005 4 3,456,000 0 20.5% 708,000 2,748,000 29,000 $26.05 0.6% 0.0 1.1 $20.71

2005 Y 3,456,000 0 20.5% 708,000 2,748,000 90,000 $26.05 3.5% 0.0 3.3 $20.71

2006 1 3,456,000 0 19.4% 671,000 2,785,000 37,000 $26.07 0.1% 0.0 1.3 $21.01

2006 2 3,502,000 46,000 20.0% 701,000 2,801,000 16,000 $26.04 - 0.1% 2.9 0.6 $20.83

2006 3 3,502,000 0 18.9% 662,000 2,840,000 39,000 $26.60 2.2% 0.0 1.4 $21.57




Section 24 - Market Data by Building Class - Class B/C Properties



RentChange

Constr/Abs

Abs/OccStock %

Gr Rev.Unit ($)

1995 Y 11,167,000 59,000 9.6% 1,074,000 10,093,000 490,000 $17.95 - 2.0% 0.1 4.9 $16.22

1996 Y 11,191,000 24,000 9.7% 1,081,000 10,110,000 17,000 $18.48 3.0% 1.4 0.2 $16.69

1997 Y 11,352,000 161,000 7.7% 870,000 10,482,000 372,000 $19.02 2.9% 0.4 3.5 $17.56

1998 Y 12,086,000 734,000 8.0% 963,000 11,123,000 641,000 $20.33 6.9% 1.1 5.8 $18.71

1999 Y 12,886,000 800,000 8.4% 1,080,000 11,806,000 683,000 $21.23 4.4% 1.2 5.8 $19.45

2000 Y 13,251,000 365,000 8.8% 1,164,000 12,087,000 281,000 $21.28 0.2% 1.3 2.3 $19.41

2001 Y 13,815,000 606,000 20.0% 2,757,000 11,058,000 -1,029,000 $21.67 1.8% -0.6 -9.3 $17.35

2002 1 14,010,000 195,000 19.3% 2,704,000 11,306,000 248,000 $21.60 - 0.3% 0.8 2.2 $17.43

2002 2 14,010,000 0 19.6% 2,748,000 11,262,000 -44,000 $21.67 0.3% 0.0 -0.4 $17.42

2002 3 14,010,000 0 19.0% 2,666,000 11,344,000 82,000 $21.76 0.4% 0.0 0.7 $17.62

2002 4 14,010,000 0 19.5% 2,735,000 11,275,000 -69,000 $21.64 - 0.6% 0.0 -0.6 $17.42

2002 Y 14,010,000 195,000 19.5% 2,735,000 11,275,000 217,000 $21.64 - 0.1% 0.9 1.9 $17.42

2003 1 14,010,000 0 18.9% 2,654,000 11,356,000 81,000 $21.59 - 0.2% 0.0 0.7 $17.50

2003 2 14,010,000 0 19.5% 2,732,000 11,278,000 -78,000 $21.40 - 0.9% 0.0 -0.7 $17.23

2003 3 14,010,000 0 20.2% 2,834,000 11,176,000 -102,000 $21.13 - 1.3% 0.0 -0.9 $16.86

2003 4 14,010,000 0 19.6% 2,750,000 11,260,000 84,000 $21.09 - 0.2% 0.0 0.7 $16.95

2003 Y 14,010,000 0 19.6% 2,750,000 11,260,000 -15,000 $21.09 - 2.5% 0.0 -0.1 $16.95

2004 1 14,010,000 0 19.6% 2,742,000 11,268,000 8,000 $21.23 0.7% 0.0 0.1 $17.07

2004 2 14,034,000 24,000 20.1% 2,824,000 11,210,000 -58,000 $21.26 0.1% -0.4 -0.5 $16.98

2004 3 14,049,000 15,000 19.6% 2,754,000 11,295,000 85,000 $20.95 - 1.5% 0.2 0.8 $16.84

2004 4 14,049,000 0 18.0% 2,528,000 11,521,000 226,000 $21.01 0.3% 0.0 2.0 $17.23

2004 Y 14,049,000 39,000 18.0% 2,528,000 11,521,000 261,000 $21.01 - 0.4% 0.1 2.3 $17.23

2005 1 14,049,000 0 16.6% 2,329,000 11,720,000 199,000 $21.06 0.2% 0.0 1.7 $17.57

2005 2 14,010,000 0 15.6% 2,190,000 11,820,000 100,000 $21.09 0.1% 0.0 0.8 $17.79

2005 3 13,994,000 0 15.4% 2,160,000 11,834,000 14,000 $21.07 - 0.1% 0.0 0.1 $17.82

2005 4 13,993,000 16,000 14.9% 2,084,000 11,909,000 75,000 $21.27 0.9% 0.2 0.6 $18.10

2005 Y 13,993,000 16,000 14.9% 2,084,000 11,909,000 388,000 $21.27 1.2% 0.0 3.3 $18.10

2006 1 13,922,000 0 16.0% 2,231,000 11,691,000 -218,000 $21.35 0.4% 0.0 -1.9 $17.93

2006 2 13,882,000 0 16.2% 2,254,000 11,628,000 -63,000 $21.33 - 0.1% 0.0 -0.5 $17.87

2006 3 13,843,000 0 15.4% 2,131,000 11,712,000 84,000 $21.57 1.1% 0.0 0.7 $18.25




Section 25 - Submarket Data

Year Qtr InventorySF/Units Completions Inventory

Growth% Vacant Stock VacancyRate

VacancyChange(%)

OccupiedStock

NetAbsorption Asking Rent Ask Rent %

Chg

2001 Y 17,271,000 665,000 3.7% 3,247,000 18.8% 10.3% 14,024,000 -1,209,000 $22.66 0.1%

2002 Y 17,466,000 195,000 1.1% 3,458,000 19.8% 1.0% 14,008,000 -16,000 $22.61 - 0.2%

2003 Y 17,466,000 0 0.0% 3,581,000 20.5% 0.7% 13,885,000 -123,000 $21.85 - 3.4%

2004 4 17,505,000 0 0.0% 3,326,000 19.0% - 0.9% 14,179,000 157,000 $21.83 0.3%

2004 Y 17,505,000 39,000 0.2% 3,326,000 19.0% - 1.5% 14,179,000 294,000 $21.83 - 0.1%

2005 1 17,505,000 0 0.0% 3,098,000 17.7% - 1.3% 14,407,000 228,000 $21.89 0.3%

2005 2 17,466,000 0 - 0.2% 2,934,000 16.8% - 0.9% 14,532,000 125,000 $22.00 0.5%

2005 3 17,450,000 0 - 0.1% 2,897,000 16.6% - 0.2% 14,553,000 21,000 $22.02 0.1%

2005 4 17,449,000 16,000 0.0% 2,792,000 16.0% - 0.6% 14,657,000 104,000 $22.22 0.9%

2005 Y 17,449,000 16,000 - 0.3% 2,792,000 16.0% - 3.0% 14,657,000 478,000 $22.22 1.8%

2006 1 17,378,000 0 - 0.4% 2,902,000 16.7% 0.7% 14,476,000 -181,000 $22.29 0.3%

2006 2 17,384,000 46,000 0.0% 2,955,000 17.0% 0.3% 14,429,000 -47,000 $22.28 0.0%

2006 3 17,345,000 0 - 0.2% 2,793,000 16.1% - 0.9% 14,552,000 123,000 $22.59 1.4%

2006 Y 17,345,000 46,000 - 0.6% 2,770,000 16.0% 0.0% 14,575,000 -82,000 $22.75 2.4%

2007 Y 17,548,000 203,000 1.2% 2,773,000 15.8% - 0.2% 14,775,000 200,000 $23.24 2.2%

2008 Y 17,813,000 265,000 1.5% 2,496,000 14.0% - 1.8% 15,317,000 542,000 $23.92 2.9%

2009 Y 17,813,000 0 0.0% 2,191,000 12.3% - 1.7% 15,622,000 305,000 $24.79 3.6%

2010 Y 17,813,000 0 0.0% 1,959,000 11.0% - 1.3% 15,854,000 232,000 $25.59 3.2%

Year Qtr EffectiveRent

Eff Rent %Chg Cons/ Abs Abs/Occ

Stock%

2001 Y $18.49 - 4.4% -0.6 - 8.6%

2002 Y $18.19 - 1.6% -12.2 - 0.1%

2003 Y $17.45 - 4.1% 0.0 - 0.9%

2004 4 $17.41 0.6% 0.0 1.1%

2004 Y $17.41 - 0.2% 0.1 2.1%

2005 1 $17.34 - 0.4% 0.0 1.6%

2005 2 $17.45 0.6% 0.0 0.9%

2005 3 $17.42 - 0.2% 0.0 0.1%

2005 4 $17.63 1.2% 0.2 0.7%

2005 Y $17.63 1.3% 0.0 3.3%

2006 1 $17.59 - 0.2% 0.0 - 1.3%

2006 2 $17.47 - 0.7% -1.0 - 0.3%

2006 3 $18.05 3.3% 0.0 0.8%

2006 Y $18.19 3.2% -0.6 - 0.6%

2007 Y $18.85 3.6% 1.0 1.4%

2008 Y $19.68 4.4% 0.5 3.5%

2009 Y $20.62 4.8% 0.0 2.0%

2010 Y $21.54 4.5% 0.0 1.5%

Rent Comps

Rent Comparables3000 Dundee Rd, Northbrook, IL -- 12/05/2006

Subject Property Location Subject Property Statistics

Comparable Group Summary Statistics

Average Submarket Lease Terms

As of 9/30/06

As of 9/30/06

SUBJECT PROPERTY

COMPARABLE GROUP MARKET SUMMARY

LEASE TERMS

Address 3000 Dundee Rd

City Northbrook

State IL

ZIP 60062

Metro Chicago

Submarket North

Latitude 42.13850

Longitude -87.85336

Property Type Office

Year Built 1979

Size (SF) 80,516

Asking Rent $18.75

Vacancy 18.0%

Low Mean Median High

Current Asking Rent/SF $18.87 $22.02 $21.14 $25.77

Current Vacancy Rate 0.7% 18.1% 13.2% 51.2%

Operating Expenses/SF $1.95 $8.23 $8.45 $11.24

Real Estate Taxes/SF $0.82 $3.84 $3.61 $5.21

Property Size (SF) 66,000 84,833 85,000 115,866

Year Built 1976 1981 1981 1986

Contract Rent Discount -6.5%

Free Rent (months/lease) 2.1

Lease Length (years) 4.8

Tenant Improvements/SF $18.24

Commissions 4.0%

Office - Asset Advisor Rent Comparables3000 Dundee Rd Northbrook, IL 60062

Metro: Chicago



Asking Rent Growth Rates

1. Quarter ending 9/30/06 2. Quarter ending 6/30/06 3. Avg over period ending 9/30/06 4. Avg over period ending 12/31/05

RENT GROWTH COMPARISONS

1. Quarter ending 9/30/06 2. Quarter ending 6/30/06 3. Avg over period ending 9/30/06 4. Avg over period ending 12/31/05

VACANCY RATE COMPARISONS

COMPARABLE GROUP GROWTH TRENDS


3Q2006 2Q2006 YTD 1 Year 3 Year 5 Year

Comparable Group 0.6% 0.4% 0.4% 1.1% -0.5% -0.1%

North 1.4% -0.0% 0.6% 1.8% -0.6% -0.4%

Chicago 0.9% 0.1% 0.6% -0.1% -1.4% -1.3%


3Q2006 2Q2006 YTD 1 Year 3 Year 5 Year

Comparable Group 18.1% 18.7% 18.0% 17.8% 16.2% 14.4%

North 16.1% 17.0% 16.6% 17.5% 18.8% 17.2%

Chicago 17.6% 18.0% 18.0% 18.9% 18.8% 16.6%

Year QtrAsking Rent(square feet)

Asking RentPct Change

VacancyRate

Vacancy PctChange

2001 4 $22.36 2.1% 15.3% 9.4%

2002 4 $22.08 -1.2% 14.9% -0.4%

2003 4 $21.77 -1.4% 14.6% -0.3%

2004 4 $21.53 -1.1% 20.2% 5.6%

2005 4 $21.76 1.1% 15.3% -4.9%

2005 1 $21.66 0.6% 19.9% -0.3%

2005 2 $21.55 -0.5% 16.3% -3.6%

2005 3 $21.62 0.3% 15.4% -0.9%

2005 4 $21.76 0.6% 15.3% -0.1%

2006 1 $21.79 0.1% 17.3% 2.0%

2006 2 $21.89 0.4% 18.7% 1.5%

2006 3 $22.02 0.6% 18.1% -0.7%


Metro: Chicago



COMPARABLE GROUP LOCATION


Metro: Chicago



COMPARABLE GROUP LISTING

1

Name 707 Lake Cook Building Current Asking Rent/SF $20.44

Address 707 Lake Cook Rd Current Vacancy Rate 51.2%

City Deerfield Distance from Subject (miles) 1.06

State IL Property Size (SF) 80,000

ZIP 60015 Floors 3

County Lake Year Built 1979

Submarket North Class BC

Data As Of 9/30/06

2

Name Deerfield Center II Current Asking Rent/SF $21.10




ZIP 60015 Floors 3



Data As Of 9/30/06

3

Name Deerfield Center III Current Asking Rent/SF $21.18




ZIP 60015 Floors 3



Data As Of 9/30/06

4

Name 1 Lane Center Current Asking Rent/SF $23.41

Address 1200 Shermer Rd Current Vacancy Rate 1.8%

City Northbrook Distance from Subject (miles) 1.62


ZIP 60062 Floors 4

County Cook Year Built 1981


Data As Of 9/30/06


Metro: Chicago




5

Name Deerfield Center I Current Asking Rent/SF $20.96




ZIP 60015 Floors 3



Data As Of 9/30/06

6

Name 3400 Dundee Road Bldg Current Asking Rent/SF $23.50

Address 3400 Dundee Rd Current Vacancy Rate 0.7%



ZIP 60062 Floors 3



Data As Of 9/30/06

7

Name Academy Office Court Current Asking Rent/SF $18.87

Address 650 Academy Dr Current Vacancy Rate 49.3%



ZIP 60062 Floors 1



Data As Of 9/30/06

8

Name Lake Cook Sanders Corp Center Current Asking Rent/SF $25.47




ZIP 60062 Floors 3



Data As Of 9/30/06


Metro: Chicago




9

Name Lake Cook Office Centre IV Current Asking Rent/SF $25.77




ZIP 60015 Floors 4



Data As Of 9/30/06

10

Name Dundee Place Current Asking Rent/SF $19.75

Address 3100 Dundee Rd Current Vacancy Rate 3.2%



ZIP 60062 Floors 1



Data As Of 9/30/06


Metro: Chicago


Sales Comparables

Sales ComparablesOffice

Copyright 2006 Reis, Inc.

Summary Statistics

Page 1 of 12

Subject Property Location

* Square footage is reported as Gross Building Area, and/or Net Rentable Area, or Unspecified Building Area.Each row, in the table above, related to size includes only those buildings in the corresponding size category.

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

Name Asset Advisor

Address/Area Searched 3000 Dundee Rd, Northbrook, IL, 60062

Metro Chicago

Low Average High

* Gross Building Area (SF) 95,000 98,378 101,755

* Net Rentable Area (SF) 115,400 115,400 115,400

* Unspecified Building Area (SF) 28,500 129,533 257,000

Number of Floors 2 3 5

Year Built 1966 1988 2001

Distance From Subject (miles) 0.97 3.06 4.71

Time Since Sale (months) 10 11 12

Sale Price $2,700,000 $23,220,100 $58,400,000

Sale Price PSF (Gross Area) $119 $129 $138

Sale Price PSF (Rentable Area) $175 $175 $175

Sale Price PSF (Unspecified Area) $95 $185 $276

Total Number of Properties 10

Office - Asset Advisor Sales Comparables3000 Dundee Rd Northbrook, IL 60062

Metro: Chicago



Copyright 2006 Reis, Inc. Page 2 of 12

AddressDistance

From Subject Submarket Year Built Floors Size (SF) Sale Price Price PSF Sale Date

1. 3000 Lakeside Dr 4.69 mi. North 1999 3 205,402 $34,500,000 $168 11 Oct 2006R

Bannockburn, IL 60015

2. 2315 Sanders Rd 2.29 mi. North 1980 2 53,049 $12,200,000 $230 18 Sep 2006R

Northbrook, IL 60062

3. 1020 Milwaukee Ave 3.72 mi. NW Suburbs 1988 3 60,000 $7,900,000 $132 02 Jun 2006R

Deerfield, IL 60015

4. 1900 E Lake Ave 4.71 mi. North 1966 3 187,500 $51,808,000 $276 22 May 2006R

Glenview, IL 60025

5. 2700 Patriot Blvd 3.08 mi. North 2001 4 115,281 $19,200,000 $167 24 Mar 2006R

Glenview, IL 60026

6. 3633 W Lake Ave 3.56 mi. North 1982 5 95,000GBA $13,143,000 $138GBA 23 Mar 2006R

Glenview, IL 60025

7. 1419 Lake Cook Rd 1.06 mi. North 1985 4 101,755GBA $12,100,000 $119GBA 07 Mar 2006R

Deerfield, IL 60015

8. 1901 Raymond Dr 2.27 mi. North 1988 2 28,500 $2,700,000 $95 15 Feb 2006Northbrook, IL 60062

9. 155 Pfingsten Rd 0.97 mi. North 1987 3 115,400NRA $20,250,000 $175NRA 16 Jan 2006Deerfield, IL 60015

10. 1200 Lakeside Dr 4.21 mi. North 1999 3 257,000 $58,400,000 $227 Dec 2005Bannockburn, IL 60015


Metro: Chicago




Property Location and Physical Characteristics

Sale Details and Analysis

Additional Details When Available

Page 3 of 12

Property Name Bannockburn Corporate Center Property Type Multi-Tenant

Address 3000 Lakeside Dr Building Area (SF) 205,402

City Bannockburn No. of Bldgs./Floors 1 / 3

State/ZIP/County IL / 60015 / Lake Year Built/Renovated 1999 / --

Metro (Submarket) Chicago (North) Asset Class A

Comments

Sale Date 11 Oct 2006Rec Reis Cap Rate Analysis ProformaSale Price $34,500,000 (Verified: Pub Rcrd) All per square foot figures are on an annual basis

Sale Price PSF $168 Rentable Area Assumption 205,402 SF

Vacancy at Sale Potential Rent Revenue $4,827,641Vacancy Loss/Rate ($511,171) [10.9%]

$22.88 Market Rent x 22,348 SF

Seller 1. Transwestern Great Lakes LP / (312) 881-7084 / 200 W MadisonSt, Ste#3300, Chicago, IL 60606

Effective Rent Revenue $4,316,470$23.59 In Place Rent x 183,054 SF

Expense Reimbursements $68,530 [$0.33 PSF]($8.38 PSF Exp. - Avg. Stop @ $8.01)

x 183,054 SF

Free Rent Concessions ($43,526) [$0.21 PSF]Credit Loss ($48,276) [1.0%]

Buyer 1. YPI Bannockburn LLC / (818) 703-9600 / c/o Steven M Siemens,5959 Topanga Canyon Blvd, Ste#130, Woodland Hills, CA 91367

Additional Income $0 [$0.00 PSF]

Effective Gross Revenue $4,293,198Operating Expenses ($1,721,269) [$8.38 PSF]

Capital Reserve ($20,000) [$0.10 PSF]Net Operating Income $2,551,930

Comments Estimated Going-in Cap Rate 7.4%Based on Sale Price of $34,500,000

Reis Indexed Metro Off Cap Rate 7.2% (Q4 2006)Reported Cap Rate, This Sale None

Seller's Broker Buyer's Broker

Other Broker Lot Size

Interest Purchased Time on Market

Key Tenants

Parcel Number 16-18-300-016

Deed Reference 6071956

Financing Details

Other:

Parking ratio of 4/1000SF.


Metro: Chicago







Page 4 of 12

Property Name Property Type Multi-Tenant

Address 2315 Sanders Rd Building Area (SF) 53,049

City Northbrook No. of Bldgs./Floors 1 / 2

State/ZIP/County IL / 60062 / Cook Year Built/Renovated 1980 / --

Metro (Submarket) Chicago (North) Asset Class --

Comments

Sale Date 18 Sep 2006Rec Reis Cap Rate Analysis ProformaSale Price $12,200,000 (Verified: Pub Rcrd) All per square foot figures are on an annual basis

Sale Price PSF $230 Rentable Area Assumption --

Vacancy at Sale Potential Rent Revenue --Vacancy Loss/Rate --

Seller 1. 2315 Sanders Road LLC Effective Rent Revenue --

Expense Reimbursements --

Free Rent Concessions --Credit Loss --

Buyer 1. 2315 Sanders Acquisition LLC / c/o Donlen Corp, 2315 SandersRd, Northbrook, IL 60062

Additional Income --

Effective Gross Revenue --Operating Expenses --

Capital Reserve --Net Operating Income --

Comments Estimated Going-in Cap Rate --



Other Broker Lot Size 407,069 SF / 9.35 Acres


Key Tenants



Financing Details Lasalle Bank NA provided a loan of $9,750,000 with a term ending 9/15/2007.

Other:


Metro: Chicago







Page 5 of 12

Property Name Deerfield Executive Center Property Type Multi-Tenant

Address 1020 Milwaukee Ave Building Area (SF) 60,000

City Deerfield No. of Bldgs./Floors 1 / 3


Metro (Submarket) Chicago (NW Suburbs) Asset Class B

Comments

Sale Date 02 Jun 2006Rec Reis Cap Rate Analysis ProformaSale Price $7,900,000 (Verified: Pub Rcrd) All per square foot figures are on an annual basis




Seller 1. North Star Trust Co / 500 W Madison, Unit 3800, Chicago, Il60661



x 52,944 SF


Buyer 1. Montesano Capital Management Inc / E Main St, 3rd Fl,Barrington, Il 60010


Effective Gross Revenue $1,012,460Operating Expenses ($430,200) [$7.17 PSF]

Capital Reserve ($5,814) [$0.10 PSF]Net Operating Income $576,446






Key Tenants



Financing Details American Chartered Bank provided a 7.37% loan in the amount of $6,320,000, expiring May 16, 2011.

Other:

4 per 1,000 SF parking ratio.


Metro: Chicago







Page 6 of 12

Property Name Property Type Multi-Tenant

Address 1900 E Lake Ave Building Area (SF) 187,500

City Glenview No. of Bldgs./Floors 1 / 3


Metro (Submarket) Chicago (North) Asset Class BC

Comments

Sale Date 22 May 2006Rec Reis Cap Rate Analysis ProformaSale Price $51,808,000 (Verified: Pub Rcrd) All per square foot figures are on an annual basis

Sale Price PSF $276 Rentable Area Assumption --

Vacancy at Sale Potential Rent Revenue --Vacancy Loss/Rate --

Seller 1. Walton GSP Glenview IV LLC Effective Rent Revenue --

Expense Reimbursements --

Free Rent Concessions --Credit Loss --

Buyer 1. Glenview 1031 LLC / c/o Scott W Wilton, 2901 Butterfield Rd,Oak Brook, IL 60523

Additional Income --

Effective Gross Revenue --Operating Expenses --

Capital Reserve --Net Operating Income --

Comments Estimated Going-in Cap Rate --





Key Tenants



Financing Details Lasalle Bank NA provided a loan of $33,675,000.

Other:


Metro: Chicago







Page 7 of 12

Property Name Prairie Glen Corporate Campus Property Type Multi-Tenant

Address 2700 Patriot Blvd Building Area (SF) 115,281




Comments

Sale Date 24 Mar 2006Rec Reis Cap Rate Analysis ProformaSale Price $19,200,000 (Verified: Pub Rcrd) All per square foot figures are on an annual basis




Seller 1. Catellus Operating LP Effective Rent Revenue $2,298,027$22.19 In Place Rent x 103,522 SF


x 103,522 SF


Buyer 1. GRE Prairie Glen LLC / c/o Alliance Commercial Partners LLC,165 S Union Blvd, Ste#510, Lakewood, CO 80228









Key Tenants



Financing Details Allstate Life Insurance Co provided a loan of $13,111,000.

Other:


Metro: Chicago







Page 8 of 12

Property Name Glenlake Professional Office Center Property Type Multi-Tenant

Address 3633 W Lake Ave Building Area (SF) 95,000GBA




Comments


Sale Price PSF $138GBA Rentable Area Assumption 89,300 SF [NRA est]



Seller 1. Glenlake LLC2. Glenlake II LLC



x 79,477 SF


Buyer 1. Glenlake Professional LLC / c/o Summit Real Estate InvestmentsInc, 2835 N Sheffield, Ste#217, Chicago, IL









Key Tenants



Financing Details UBS Real Estate Investments Inc provided a loan of $10,593,000.

Other:


Metro: Chicago







Page 9 of 12

Property Name Lake Cook Office Centre IV Property Type Multi-Tenant

Address 1419 Lake Cook Rd Building Area (SF) 101,755GBA




Comments


Sale Price PSF $119GBA Rentable Area Assumption 95,649 SF [NRA est]



Seller 1. Massachusetts Mutual Life Insurance Co / (800) 542-6767 /Springfield, MA



x 80,345 SF


Buyer 1. Walgreen Co / (847) 914-2500 / 104 Wilmot Rd, Deerfield, IL60015









Key Tenants



Financing Details

Other:

Parking ratio of 4/1000SF.


Metro: Chicago







Page 10 of 12

Property Name Raymond Drive Office Courts Property Type Multi-Tenant

Address 1901 Raymond Dr Building Area (SF) 28,500

City Northbrook No. of Bldgs./Floors 1 / 2



Comments

Sale Date 15 Feb 2006 Reis Cap Rate Analysis ProformaSale Price $2,700,000 APX All per square foot figures are on an annual basis


Vacancy at Sale Potential Rent Revenue $529,106Vacancy Loss/Rate ($90,573) [16.7%]


Seller 1. Trust 122213-05 Effective Rent Revenue $438,533$18.23 In Place Rent x 23,741 SF


x 23,741 SF


Buyer 1. Montesano Capital Management Inc Additional Income $0 [$0.00 PSF]

Effective Gross Revenue $402,467Operating Expenses ($142,785) [$5.01 PSF]







Key Tenants

Parcel Number

Deed Reference

Financing Details

Other:

3.5: 1,000 SF parking ratio.


Metro: Chicago







Page 11 of 12

Property Name Cross Creek Property Type Multi-Tenant

Address 155 Pfingsten Rd Building Area (SF) 115,400NRA




Comments

Sale Date 16 Jan 2006 Reis Cap Rate Analysis ProformaSale Price $20,250,000 All per square foot figures are on an annual basis

Sale Price PSF $175NRA Rentable Area Assumption 115,400 SF



Seller 1. Fulcrum Asset Advisors Effective Rent Revenue $2,488,580$22.86 In Place Rent x 108,788 SF


x 108,788 SF


Buyer 1. Colony Capital Additional Income $0 [$0.00 PSF]








Key Tenants


Deed Reference

Financing Details

Other:

4:1,000 SF parking ratio.This property sold August 2003; see Reis sales comparables ID number 71314.


Metro: Chicago







Page 12 of 12

Property Name Bannockburn Centre Property Type Multi-Tenant

Address 1200 Lakeside Dr Building Area (SF) 257,000

City Bannockburn No. of Bldgs./Floors 1 / 3



Comments Building consists of four wings that connect to a central core. The exterior is a concrete facade with sandblasted reveals and reflectiveblue glass, including a curtain-wall at the building's entrance. The lobby is a combination of terrazzo and granite which highlights the3-story atrium located in the center of the building.

Sale Date Dec 2005 Reis Cap Rate Analysis ProformaSale Price $58,400,000 (Verified: Buyer) All per square foot figures are on an annual basis


Vacancy at Sale 0.0% (excludes sublease) Potential Rent Revenue $6,103,750Vacancy Loss/Rate ($0) [0.0%]

$22.91 Market Rent x 0 SF

Seller 1. Prentiss Properties / (214) 654-0886 / Dallas, TX Effective Rent Revenue $6,103,750$23.75 In Place Rent x 257,000 SF


x 257,000 SF

Free Rent Concessions ($0) [$0.00 PSF]Credit Loss ($61,038) [1.0%]

Buyer 1. HRPT Properties / (617) 332-3990 / Newton, MA Additional Income $0 [$0.00 PSF]



Comments Part of a 5 building portfolio sale totaling 655,000SF and selling for$131,060,000 see Reis Sales Comparables ID numbers 116821,116830, 116847.

Estimated Going-in Cap Rate 7.3%Based on Sale Price of $58,400,000

Reis Indexed Metro Off Cap Rate 7.4% (Q4 2005)Reported Cap Rate, This Sale 7.5%




Key Tenants

Parcel Number

Deed Reference

Financing Details

Other:

Parking ration of 4/1000SF. There are also 33 underground parking spaces for executive parking.


Metro: Chicago


sample office asset advisor

Technology

88th ave mokena

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rent growth comparisons