January 2009 Market Report

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January 2009 Market Report Office Average Vacancy Rates Midtown Class A

Dec-08 9.9%

Nov-08 9.3%

Dec-07 5.8%

Midtown Class B

12.1%

11.8%

9.8%

Midtown South Class A Midtown South Class B

5.8% 12.4%

6.1% 12.3%

5.1% 9.2%

Downtown Class A Downtown Class B

7.7% 14.2%

7.6% 14.0%

3.9% 11.3%

Average Asking Rent (PSF) Midtown Class A Midtown Class B

Dec-08 $82.11 $53.60

Nov-08 $88.45 $54.99

Dec-07 $95.04 $64.76

Midtown South Class A Midtown South Class B

$59.33 $47.31

$59.32 $49.10

$60.05 $49.77

Downtown Class A

$56.53

$60.89

$54.52

Downtown Class B

$44.22

$44.47

$44.24

Source: Colliers ABR

Manhattan Class A Vacancy Rates & Asking Rents Vacancy Rate

10.5% 9.5%

Asking rent

$90.00

9.5% 9.4%

9.1%

9.0% 8.1% 7.4%

7.5% 6.5%

7.1%

7.4% 7.0%

6.8% 6.0% 6.1% 5.6%

5.5%

5.7%

$70.00 $60.00

5.3% 5.3%

$50.00

4.5% 3.5%

$40.00 Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08

Source: Colliers ABR

Asking Rent

Vacancy Rate

$80.00 8.5%

Economic Indicators Dow Jones (^DJI) % Change & Monthly Close 5.0% 14,500.00 -5.0%

13,500.00 12,500.00

-15.0%

11,500.00 -25.0% 10,500.00 -35.0%

9,500.00

-45.0%

8,500.00

Dec- Jan- Feb- Mar- Apr- May- Jun- Jul-08 Aug- Sep- Oct- Nov- Dec07 08 08 08 08 08 08 08 08 08 08 08 Dow Jones(^DJI) Close

Dow Jones(^DJI) % Change

Nasdaq (^IXIC) % Change & Monthly Close 10.0% 2,800.00

0.0%

2,550.00 -10.0% 2,300.00 -20.0% 2,050.00 -30.0%

1,800.00

-40.0%

1,550.00

-50.0%

1,300.00

Dec- Jan- Feb- Mar- Apr- May- Jun- Jul-08 Aug- Sep- Oct- Nov- Dec07 08 08 08 08 08 08 08 08 08 08 08 Nasdaq(^IDIX) Close

Nasdaq(^IDIX) % Change

S&P 500 (^GSPC) % Change & Monthly Close 1550

5.0%

1450 -5.0%

1350 1250

-15.0%

1150 -25.0%

1050 950

-35.0%

850 -45.0%

750

Dec- Jan- Feb- Mar07 08 08 08

Apr- May- Jun- Jul-08 Aug- Sep- Oct08 08 08 08 08 08

S&P 500(^GSPC) Close Source: NYC Office of Management and Budget

S&P 500(^GSPC) % Change

Nov- Dec08 08

Foreign Exchange Rate USD to CAD Euro to USD Pound to USD USD to Peso USD to Yen

12/31/08 1.22

11/28/08 1.24

12/31/2007 0.99

1.39 1.46 13.83 90.79

1.27 1.53 13.39 95.46

1.46 1.98 10.92 111.71

Source: Federal Reserve Bank of NY

Prime Rate 12/29/08 3.25%

11/29/08 4.00%

12/11/2007 7.25%

Source: New York Federal Reserve Bank

Consumer Price Index (1982-84 = 100) Dec-08 Nov-08 233.01 234.50 Change To Aug-08 From: Nov-08 -0.63%

Dec-07 229.40 Dec-07 1.57%

Source: Bureau of Labor Statistics

Employment For New York City (In Thousands, Not Seasonally Adjusted)

Total Financial Activities Services Wholesale Trade Retail Trade Government Construction Manufacturing Transportation & Utilities Unemployment Rate Source: NYS Department of Labor

Dec-08 3773.13

Nov-08 3789.2

Dec-07 3798.1

453.5

454.9

474.7

1,634.00 144 310.8 561.4 123.5 90.4 126.5 7.20%

1632.7 148.7 308.5 562.3 129.5 92.9 127.1 6.20%

1,620.5 148 309 565 127.8 98.6 127.6 5.2%

Housing Mortgage Rates NYC Week Ending 12/26/08 Week Ending 11/26/08 Week Ending 12/28/07

15 Yr

30 Yr

1 Yr Adj.

5.54% 6.25% 6.23%

5.84% 6.51% 6.65%

5.40% 5.74% 5.72%

Source: HSH Associates

2008 Month January February March April May June July August September October November December 2008 Total to Date

BX 346 398 118 130 97 120 552 54 89 123 52 49

BK 1031 278 294 375 1,416 7,154 521 247 390 127 188 336

MN 80 192 213 715 1,157 5,751 228 383 269 221 239 252

QN 167 257 281 631 1,117 3,749 593 188 235 268 144 100

SI 98 31 109 138 54 354 208 20 169 39 24 11

NYC To Month 1,722 1,156 1,015

NYC to Date 1,722 2,878 3,893

1,989 3,841 17,128 2,102 892 1,152 778 647 748

5,882 9,723 26,851 28,953 29,845 30,997 31,775 32,422 33,170

2,128

12,357

9,700

7,730

1,255

33,170

SI 86 53 52

NYC To Month 2,613 1,863 2,788

2007 Month

NYC to Date 2,613 4,476 7,264

January February March

BX 623 149 265

BK 662 224 1,735

MN 306 914 331

QN 936 523 405

April

232

1,203

444

885

45

2,809

10,073

May June July August September October November December

445 240 510 151 133 83 155 118

941 1,334 601 1,099 371 344 588 1,828

515 585 1,975 656 958 1,632 967 237

541 1,829 436 346 304 410 592 418

107 40 60 63 66 63 64 40

2,549 4,028 3,582 2,315 1,832 2,532 2,366 2,641

12,622 16,650 20,232 22,547 24,379 26,911 29,277 31,918

3,104

10,930

9,520

7,625

739

31,918

Bronx 3,104 2,128 -31.44%

Brooklyn 10,930 12,357 13.06%

Staten Island 739 1,255 69.82%

NYC Total to Date 31,918 33,170 3.92%

2007 Total to Date

Year to Date Comparison Jan-Dec 07 Jan-Dec 08 Percent Change Source: U.S. Census Bureau Monthly and Annual Totals are reported separately by the U.S. Census Bureau

Manhattan 9,520 9,700 1.89%

Queens 7,625 7,730 1.38%