2012 State Of The Capital Markets: DC Metro

State of the Capital MarketsWashington, DC

Dear Colleagues,

As I sit back and reflect on 2011, I can’t help but hear the Grateful Dead singing “What a Long Strange Trip it’s Been.” Last January, I was

sure we were on the path to strong upward growth where every sale transaction would establish stronger and better results than the one

before. I was correct through the first six months of the year, but then both domestic and foreign events seemed to give way to a major

loss of confidence which affected buyers, sellers and lenders alike. So what does 2012 portend? More of the same or more changes?

Optimism seems to be too strong a description for my current mood. Perhaps guarded optimism better describes my feelings right

now. We have the unknown of the presidential election hanging over our heads until later this year and the direction (and velocity?)

of federal spending attached to that outcome. No matter what the results, a decision will be made – something almost unheard

of in this town of late.

Average is what I expect in terms of results next year. Average sales activity, average leasing activity and average lending

activity. Average isn’t bad, but who likes to be average? I feel this could be the case for the next 24 months followed by a

prolonged strong recovery in both private and public spending. Predictions:

• Yes, we will have job growth and reduced unemployment which will be positive for all real estate product types.

• Investors and companies will find it more important than ever to be physically close to the federal actors for

both offensive and defensive reasons.

• The bulk of the sales activity will stay in core to core plus properties, but those investors willing to stray

from the safest bets and assume future leasing exposure will be rewarded three years from now as the

economy turns the corner and demand for space turns robust.

• The debt market will be fundamental to the success of the real estate market, but it will be very much

dependent on the return of a much healthier CMBS market.

So, my conclusion is markets are never as good or as bad as we might believe them to be, but one thing

that is certain is that the economy is making steady upward progress and those who take the position that

the glass is half full will be rewarded.

Best regards,

William M. Collins

Executive Managing Director, Principal

Capital Markets Group

2 | Cassidy Turley

DC - Top Performing Investment Market

Throughout the year, a number of major political and economic events shocked the U.S. economy including a volatile stock market, the federal debt ceiling crisis, Moody’s downgrade of U.S. credit, near shutdowns of the Federal Government, the federal deficit debate, and the European sovereign debt crisis. Nonetheless, the economy created jobs; full-time nonfarm payrolls increased by 842,000 in 2011 after having declined by 920,000 in 2010. The national unemployment rate decreased by 0.9% over the year to end 2011 at 8.5% on a seasonally adjusted basis. Real gross domestic product (GDP) increased every single quarter of 2011 and ended the year at 2.8%.

Still, despite the upbeat year-end, there are still many reasons to be skeptical of any robust U.S. economy in 2012. Although the economy is creating jobs, there is still a long way to go to recover the 9.4 million full-time payrolls lost in the three years 2008 to 2010. With the ongoing saga of the European sovereign debt crisis and upcoming U.S. presidential and congressional elections in November, the U.S. economy will most likely have its set of ups and downs over the coming year.

During the Great Recession and into 2010, the DC Metro economy outperformed other parts of the nation. The Federal Government fueled economic expansion as the private sector slowly gained steam. DC Metro has been one of the top performers in terms of job creation during the past few years. In 2010, the DC Metro economy added 10,900 nonfarm payrolls, ranking it #2 behind New York City for total job creation. The region is starting to function more like markets in the rest of the nation. During 2011, the DC economy did add more jobs – 17,900 – though its job-creation ranking fell to #10 behind cities fueled by growth in the technology and energy sectors.

Nevertheless, the unemployment rate fell to 5.4% – remaining the lowest among major metros in the country.

In the first quarter of 2011, the District’s economy continued to benefit from the Federal Government’s expanded role in the economy. As crisis after crisis hit in 2011, employment and leasing activity from the public sector waned. Employment (and net leasing) shifted to the private sector which added enough nonfarm payrolls to offset the downturn in Federal Government jobs. Of the 17,900 jobs added in 2011 (January through December, not seasonally adjusted), 16,900 were in the private sector. The DC economy continues to diversify as private sector corporations are attracted to DC’s status as a world capital, its cultural diversity, and a highly educated population. Among the notable companies relocating their headquarters to the area in 2011 were Bechtel’s global operations and Siemens USA.

The U.S. economy began – and ended – 2011 on an upbeat

– with robust job growth, a declining unemployment rate,

and improving consumer confidence. But 2011 was a

roller-coaster ride.

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Job Growth By Metro 2011 Employment Gains / Losses, Non-Seasonally Adjusted

Source: Bureau of Labor Statistics

cassidyturley.com | 3

Increased federal spending was a major driver of economic growth during 2011. Indeed, the Federal Government accounts for almost 40% of the DC regional economy, and related government procurement accounts for 19% of the region’s economy, according to research from George Mason University (GMU). Total Federal Government spending rose to $169 billion in 2010 – a resulting 5.4% annual increase for the DC region. But growth in government spending has slowed. While final figures for last year have not yet been released, 2011 is expected to show an increase of approximately 2% according to GMU. Ambiguous federal deficit reduction plans and uncertainties related to the 2012 presidential election are hindering confidence in the local economy. The near-term outlook for federal spending is that it will continue to slow until there is more clarity on spending. GMU forecasts federal outlays in the DC region to grow at a significantly slower pace – from 0% to 1.5% annually through 2015 – compared to the 7.2% average annual growth rate over the past 25 years.

Despite uncertainty about Federal Government spending activity, the resiliency of the DC economy continues to attract highly educated people to the region. Net migration to the DC area is expected to be 37,000 people over the next three years. Additionally, the difference between local and national incomes has continued to widen. The median DC household income is currently $89,000 – 76% above the national median income. That is good news for the region’s economy as its pool of highly educated workers have money to spend, supporting future demand for multifamily housing, retail, and office space.

1331 L Street, Washington, DC

4 | Cassidy Turley

DC remains one of the top metros for real estate. The Urban

Land Institute’s Emerging Trends in Real Estate 2012 survey

ranked the DC market as the #1 “U.S. Market to Watch” for

commercial real estate investment. Due to the economic

volatility in 2011, investors remained focused on “gateway”

markets such as Washington, DC.

DC region office sales volume totaled $7.2 billion last year – an increase of 68% over 2010 while far exceeding the $5.4 billion historical average. DC metro ranked second – behind Manhattan – in sales volume among all office markets. The year ended with 73 transactions completed – a 33% increase over 2010.

The region not only posted strong sales volume during the year, but also performed well on a price per square foot (psf) basis. The average price for office property in DC Metro was $400 psf—the second highest per square foot price on record. Moreover, office prices in the District itself averaged $503 psf – the highest average price in any city in the U.S. Core downtown transactions set new records. Wells Real Estate acquired Market Square in the District’s East End from Beacon Capital

Partners for a record-breaking $904 psf. The same downtown submarket saw Liberty Place and the Executive Tower trade hands for $884 psf and $846 psf, respectively.

Returns on commercial real estate proved to be a good choice for investors as the spread above the risk-free rate increased to reach 400 to 550 bps above the 10-year treasury (history shows that the average spread is closer to 350 bps). While most market watchers thought the 10-year treasury in 2010 was “as low as you can go,” it continued to decline to historic lows ending 2011 at 1.98%. In comparison, cap rates for DC office properties stabilized. The average office cap rate in the DC region was 6.8%, shrinking by only 10 basis points from 6.9% in 2010. Cap rates in the District averaged 6.0%, those in Northern Virginia averaged 6.9%, and cap rates in suburban

Investment Sales - DC Metro

Major Metros Dominate Sales Activity2011 Office Sales Volume

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Sales Vol Avg Cap Rate

Sources: Real Capital Analytics, Cassidy Turley

$7.2

$1.1$2.0

$2.8

$4.9

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$16

1995

1996

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1998

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2010

2011

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Historical Avg = $5.4b

Office Sales Continue Climbing Washington, DC Metro Area


Waterfront Station, Washington, DC

$245$267 $277

$323

$363

$423

$461 $451

$544

$403

$491 $503

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Office Price Per Square Foot District of Columbia

3.5%

4.5%

5.5%

6.5%

7.5%

8.5%

9.5%

10.5%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

DC MD VA

Office Cap Rates Washington, DC Metro Area


6 | Cassidy Turley

Investment Sales - DC Metro

Maryland averaged 7.6%. Investors continued to show interest in well-located, close-in submarkets. Average cap rates inside the Beltway compressed 50 bps over the year, while outside the Beltway rates increased by 50 bps.

In 2011, institutional investors remained the dominant players in the region’s office building sales. Institutional investors accounted for 47% of DC Metro transactions last year, compared to a 36% share for the U.S. as a whole. Private investors made a comeback in DC last year, accounting for approximately one in four purchase transactions. With fiscal troubles in the Eurozone and the slowing growth in Asian markets, foreign investors again turned to the U.S. for investment alternatives. International (cross-border) buyers continued to show strong interest in the DC Metro. The Association of Foreign Investors in Real Estate (AFIRE) ranked DC as the #3 top global city for foreign investment, behind New York City and London.

Composition of DC Metro Office Buyers

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5%

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Source: Real Capital Analytics

Washington Metro Office Leasing Fundamentals

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New Deliveries Net Absorption Vacancy Rate


Office Leasing

Office demand in DC Metro departed from its accelerated level of 2010. Metro-wide, a net 1.2 million square feet were absorbed in 2011 compared to 5.7 million square feet absorbed a year earlier. However, it should be remembered that 2010 figures were inflated due to higher than normal leasing activity by public sector tenants. Vigorous federal leasing velocity continued into the first quarter of 2011, but private businesses accounted for a significant share of leasing activity from the second quarter through the end of the year. DC Metro ended 2011 with almost 700,000 square feet of government net absorption in privately owned buildings, while the private sector absorbed 530,000 square feet.

Regional vacancy at year-end 2011 was 13.0% – exactly where it was one year ago. Although net demand significantly slowed compared to its level in 2010, vacancy rates were kept in check by a thin development pipeline. Metro-wide new building deliveries totaled only 1.3 million square feet—the

smallest amount of new space delivered to the market since 1994. New deliveries will continue to be limited over the next two years, giving the market a chance to recover and absorb excess space. An average 2.5 million square feet will deliver annually in 2012/2013 metro-wide – that represents approximately one-third of the 25-year annual average. Additionally, the supply of available sublet space also declined – up to 20 bps metro-wide – as tenants placed less space on the market in anticipation of future growth.

Asking rental rates for the region increased 1.5% during 2011 to an average $35.45 psf. Still, this is well below the average annual increase of 2.9%. With slow net demand in 2012, we expect asking rents to rise in the neighborhood of 1% to 3%, metro-wide. Additionally, vacancy rates will not decrease significantly over the next two years. Consequently, significant rental increases will not occur until the 2013-2014 timeframe.

AnnuAL ABSORPtiOn – VACAnCy – RentAL RAteS: DC MetRO MARketS

2008 2009 2010 2011

WAShinGtOn DC

Absorption 755,000 116,000 3,873,000 799,000

Vacancy 7.8% 11.7% 10.4% 10.4%

Asking Rates $47.60 $47.50 $48.72 $49.53

nORtheRn ViRGiniA

Absorption 1,239,000 (1,713,000) 1,759,000 (120,000)

Vacancy 12.9% 14.8% 14.0% 14.2%

Asking Rates $31.24 $29.72 $29.56 $30.25

SuBuRBAn MARyLAnD

Absorption (900,000) (686,000) 107,000 553,000

Vacancy 12.9% 15.2% 15.2% 15.1%

Asking Rates $27.15 $26.77 $26.54 $26.57

8 | Cassidy Turley

District

The District of Columbia was one such market and it continued to build on momentum from 2010. The District saw over $3.6 billion in office sales – a $1 billion increase over the sales total in 2010. By the end of 2011, there were 30 sales transactions in the District – an increase of 25% from 2010. Buyers chasing assets in core markets like DC drove up the average psf to $503 – the second highest average price in DC history. Three transactions over $800 psf in the East End helped push averages up.

Compared to the District’s 3.9 million square feet of net absorption in 2010, 2011 seemed like a slow year. The Washington, DC office leasing market ended 2011 just shy of 800,000 square feet of net absorption – half of its 10-year historical average. Leasing activity shifted from the public to private sector after the second quarter of 2011. Whereas government leases accounted for over 80% of all space absorbed in 2010, only 52% of net leasing in 2011 was from the public sector. Nonetheless, the Federal Government

still signed the top three largest leases in 2011: the Office of the Comptroller of the Currency (OCC) for 650,000 square feet (backfilling some of the unneeded space signed by the SEC in 2010); NASA for almost 600,000 square feet; and the U.S. Department of State consolidation for 463,000 square feet. Alternatively, law firm Howrey LLP’s dissolution left 320,000 square feet in the East End submarket.

Despite diminishing net demand over the year, limited new building deliveries helped keep vacancy rates in check. Vacancy ended the year exactly where it started – at 10.4%. With moderate demand, rental rates have flattened. Average asking rates in DC rose a few pennies over the past four quarters to end the year at $49.39 psf compared to $49.36 psf a year ago. Tenant incentive packages increased slightly toward the end of 2011, but are expected to remain stable in 2012 with landlords offering tenant improvements for new space in the $65 to $85 psf range with three to nine months of rental abatement.

Regional Markets

2011 will enter the books as a year of volatility and

uncertainty. As such, buyers were – and continue to

be – attracted to quality assets in core markets rather

than those in secondary or tertiary markets.

National Press Building, Washington, DC


northern Virginia

Northern Virginia sales volume increased significantly in 2011, totaling $3.2 billion in sales – more than double 2010’s volume. In the fourth quarter of last year, one portfolio transaction of $1.2 billion accounted for most of the entire year’s growth: Goldman Sachs acquired a 90% ownership of ten properties from bankrupt Lehman Brothers. The average $345 psf sales rate was up $91 compared to that in 2010, as a mix of properties sold both inside and outside the Beltway. Three properties exceeded the $500 psf range: the Verisign Building in Reston ($533 psf), One Virginia Square in the Rosslyn-Ballston Corridor ($533 psf), and 1300 N 17th Street in Rosslyn ($529 psf).

Northern Virginia leasing activity was a mixed bag during 2011. After what seemed like a positive recovery in the second and third quarters, fourth quarter leasing hit a down note and brought annual net absorption in the market to a negative 125,000 square feet. Verizon’s consolidation into DC and other Northern Virginia locations left the Arlington submarket with 300,000 sf of vacant space in 1Q 2011. Additional consolidations and moves at Accenture, the U.S. Postal Service, and Northrop Grumman weighed heavily on net demand figures. Fortunately, only 269,000 square feet of new building space delivered to the market – the smallest amount in 17 years. With limited new supply, vacancy increased to 14.2% by the end of 2011, 0.2% higher than one year ago. The dichotomy between markets inside and outside the Beltway continued, but past trends were reversed. Net absorption outside the Beltway was positive, ending 2011 at 816,000 square feet; inside the Beltway net absorption was a negative 941,000 square feet. Reston Town Center and other toll road markets experienced strong demand from the technology sector. Though BRAC-related move-outs had a limited effect on market performance in Arlington, consolidations and relocations were enough to increase Arlington’s vacancy rate to 10.6% at the end of 2011, up from 7.9% in 4Q 2010. Developers are still focused on the long-term resiliency of the Northern Virginia markets as evidenced by groundbreakings in Arlington and Tysons Corner. Despite the bad news on net demand, Northern Virginia’s average rental rate rose 2.3% to end the year at $30.25 psf.

One Virginia Square, Arlington, VA

10 | Cassidy Turley

Northern Virginia will remain relatively quiet throughout 2012 as defense contractors try to figure out the impact of proposed federal budget cuts on their businesses and space requirements. Technology and financial services will remain active players in the market. Additionally, Northern Virginia will continue to be a magnet, attracting new private sector businesses to the region as evidenced by Bechtel’s global operations relocation from Frederick, MD to Reston. Still, until more certainty is gained after the November elections, hiring (and, therefore, office space absorption) will be subdued for the next 12-18 months.

Suburban Maryland

Momentum returned to the suburban Maryland market in 2011. Office sales more than doubled from their pace in 2010. Sales volume ended 2011 with $507 million in transactions. Thirteen deals closed during the year, although that number is well below the historical average of 24 transactions in a typical year. Price psf increased significantly to $275 in 2011 compared to $178 in 2010. Strength was particularly evident in well-located buildings closer to the urban core. The most notable deal was JBG’s sale of One Bethesda Metro in Bethesda, which traded hands for just over $90 million, or $500 psf. JBG purchased the building two years ago for $71 million.

The suburban Maryland office leasing market saw marked improvement last year. Absorption for 2011 totaled 553,000 square feet, outperforming its 10-year average by almost 50%. The largest non-renewal transactions were preleases by the National Institute of Allergy and Infectious Diseases (NIAID) and Choice Hotels in new buildings yet to be delivered. Also notable were a 105,000 square foot lease signed by Meso Scale Diagnostics and one by IFC Macro that took 98,000 square

feet, proof of the private sector continuing to lease up space in suburban Maryland. As a result of these developments, the vacancy rate inched down 0.1% over the year and stood at 15.1% at the end of 2011. After three years of declines, asking rents increased slightly to $26.57 by the end of the year, three pennies higher than they were a year ago.

The suburban Maryland economy continues to recover slowly. Suburban Maryland saw an additional 3,400 nonfarm payrolls in 2011 – the most jobs added since 2006. The Education and Health sectors continued to lead local job growth, while the Professional and Business Services sector added approximately 1,000 jobs over the year. Additionally, the Financial Activities sector reversed its trend of consecutive annual job losses that have been taking place since 2006. With continued, steady job growth, measured office leasing activity, and limited supply, we expect vacancy rates to remain relatively flat over the next three years. Mass transit and amenity-rich submarkets such as Bethesda-Chevy Chase and the Rockville Pike corridor will lead Maryland’s recovery. Locations lacking public transportation access will struggle to compete.

Regional Markets


One Washingtonian Center, Gaithersburg, MD

12 | Cassidy Turley

Looking Ahead

Still, this is about half of the historical average. Compared to prior years, job growth has been slower to translate into leasing activity. This is due to the large amount of “shadow space” that businesses have had to absorb. The good news is that sublet inventory has declined – an indication that tenants are absorbing their current space and planning expansions for the future. Additionally, investors continue to find DC Metro an attractive area to invest due to its strong economic fundamentals.

Moving forward, we expect the region to continue a slow, but steady recovery:

• As focus shifted some to core plus properties and secondary / tertiary markets during 2011, momentum will gravitate back to core properties in prime locations due to uncertainties in the markets during 2012. Investors will still focus on major metro areas such as Washington, DC and New York, NY due to their market stability and potential for future growth. In DC Metro, expect the majority of office sales to occur inside the Beltway and in core markets during 2012.

• After $7.2 billion in office sales in 2011, strong market fundamentals remain for the DC Metro market. We forecast 2012 office investment sales volume to revert back towards the historical average of $5.4 billion in sales, metro-wide.

• Cap rates appear to have stabilized with nowhere to go but up. Still, with 10-year treasuries hovering around 2%, some economists forecast a further decline approaching 1.5% in 2012. If so, this provides more room for further cap rate compression.

• Employment will continue to grow slowly throughout the year (a year of a presidential election) and into 2013. Hiring will come primarily from the private sector as the Federal Government reduces payrolls through attrition and retirement. Expect employment gains to reach a more “normal” pace in the second half of 2013 and into 2014.

• On average, total federal outlays in the DC area have increased by 7.2% annually over the past 25 years. Federal outlays have increased every single year for DC Metro, despite some years of decreases on a national basis. With a focus on deficit reduction, regional spending will definitely slow. The final outcomes of proposed federal spending cuts are uncertain. Federal agencies and contractors will be hesitant to make long-term decisions until deficit reduction details are ironed out and the national election takes place in November.

• With moderate demand in the near term coupled with the DC region’s thin office supply pipeline over the next three years (2012-2014), we expect office vacancy rates in metro DC to tick down moderately to 12.9% by the end of 2012.

• Leasing concessions started to stabilize in most of the DC metro area in 2011, though they increased slightly by year’s end. With subdued leasing activity over the near term, vacancy rates are not expected to decrease significantly. Thus, the region will not see sizable rental increases across the board until the 2013 timeframe and beyond.

• Bush tax cuts are set to expire by year’s end, prompting some investors to consider completing transactions in 2012 to take advantage of the lower tax rates.

With many changes in both the public and private sectors,

2011 can be summarized as both volatile and uncertain.

Even though the metro economy went through many ups

and downs in 2011, 17,900 jobs were added.


OFFiCe LeASinG VACAnCy FOReCASt WAShinGtOn MetRO AReA MARketS

2011 2012 2013 10 year Average

DC 10.4% 10.1% 10.0% 8.0%

NoVA 14.2% 14.0% 13.7% 13.5%

Suburban MD 15.2% 15.1% 15.0% 12.1%

DC Metro 13.0% 12.9% 12.6% 11.2%

12061 Bluemont Way, Reston, VA

2011 Office Sales Transactions

WASHINGTON, DCBuilding Address Total Price Total SF Price / SF Seller Buyer

1399 New York Avenue NW $104,000,000

2131 K Street NW $28,800,000

740 15th Street NW $69,250,000

1100 1st Street NE $180,000,000

1400 Eye Street NW $58,450,000

1100 17th Street NW $49,750,000

2600 Virginia Avenue NW $76,000,000

1130 Connecticut Avenue NW $105,500,000

1200 17th Street NW $39,650,000

700 13th Street NW $120,000,000


1200 1st Street NE $149,500,000

529 14th Street NW $167,500,000

325 7th Street NW $139,000,000

700 6th Street NW $191,000,000

1140 & 1146 19th Street NW $39,500,000

1100 & 1101 4th Street SW $356,000,000

601 New Jersey Avenue NW $106,000,000

1227 25th Street NW $47,000,000

840 1st Street NE $90,000,000

1101 K Street NW $199,000,000

701 & 801 Pennsylvania Avenue NW $615,000,000

2115 & 2121 Wisconsin Avenue NW $66,500,000

1600 K Street NW $35,000,000

2300 N Street NW $140,000,000

1331 L Street NW $101,000,000

1331 H Street NW $23,000,000

1255 23rd Street NW $137,400,000

1155 15th Street NW $29,200,000


2011 TOTAL (34 Buildings) $3,568,559,622

Notes: 1. Bold/Italic indicates Cassidy Turley transaction 2. The information contained in the 2011 Office Sales Transaction charts was obtained from sources deemed reliable, but no warranty or representation is made to the accuracy thereof. This infromation is provided subject to correction of errors and omissions. Includes buildings 50,000 square feet or more.

14 | Cassidy Turley

WASHINGTON, DCBuilding Address Total Price Total SF Price / SF Seller Buyer

1399 New York Avenue NW $104,000,000

2131 K Street NW $28,800,000

740 15th Street NW $69,250,000

1100 1st Street NE $180,000,000

1400 Eye Street NW $58,450,000

1100 17th Street NW $49,750,000

2600 Virginia Avenue NW $76,000,000


1200 17th Street NW $39,650,000

700 13th Street NW $120,000,000


1200 1st Street NE $149,500,000

529 14th Street NW $167,500,000

325 7th Street NW $139,000,000

700 6th Street NW $191,000,000

1140 & 1146 19th Street NW $39,500,000

1100 & 1101 4th Street SW $356,000,000

601 New Jersey Avenue NW $106,000,000

1227 25th Street NW $47,000,000

840 1st Street NE $90,000,000

1101 K Street NW $199,000,000

701 & 801 Pennsylvania Avenue NW $615,000,000

2115 & 2121 Wisconsin Avenue NW $66,500,000

1600 K Street NW $35,000,000

2300 N Street NW $140,000,000

1331 L Street NW $101,000,000

1331 H Street NW $23,000,000

1255 23rd Street NW $137,400,000

1155 15th Street NW $29,200,000


2011 TOTAL (34 Buildings) $3,568,559,622

Notes: 1. Bold/Italic indicates Cassidy Turley transaction 2. The information contained in the 2011 Office Sales Transaction charts was obtained from sources deemed reliable, but no warranty or representation is made to the accuracy thereof. This infromation is provided subject to correction of errors and omissions. Includes buildings 50,000 square feet or more.

Sales Transaction detailsavailable in printed versionFor copy of brochure, please click here and

include your full contact information.


mailto:[email protected]


NOrTHerN VIrGINIABuilding Address Total Price Total SF Price / SF Seller Buyer

4050 & 4000 Legato Road $128,700,000

2675-2677 Prosperity Avenue $105,000,000

12061 Bluemont Way $118,000,000

1400 Wilson Boulevard $52,650,000


12930 Worldgate Drive $65,000,000

1000, 1100, 1101, 1200, 1401,

1501 & 1515 Wilson Blvd; 1812 N Moore St,

1400 Key Blvd; 1701 N Fort Myer Dr

$1,221,650,419

601 North Fairfax Street $21,000,000


11130, 11180 & 11190 Sunrise Valley Drive $63,000,000

8283 Greensboro Drive $73,500,000

1310, 1320, 1330 & 1340 Braddock Place $101,000,000

14420, 14428 & 14426 Albemarle Point Place * $28,713,126

2000 & 2002 Edmund Halley Drive $50,500,000

1616 N Fort Myer Drive $145,500,000

1881 Campus Commons Drive $64,400,000

1764A, 1764, 1768, 1755-1757 & 1761 Old Meadow Road $138,550,000

7700 Leesburg Pike $15,000,000

6400 & 6402 Arlington Boulevard $81,526,000

44084 Riverside Parkway $8,250,000

12700 Sunrise Valley Drive $16,600,000

8000 Westpark Drive $27,200,000

45335 Vintage Park Plaza $5,284,000

1300 N 17th Street $205,000,000

700 S Washington Street $12,125,000

2050 Ballenger Avenue $24,696,000

4114 Legato Road $60,250,000

2300 Dulles Station Boulevard $58,800,000

2222 & 2216 Gallows Road $22,800,000

4755 Meadows Wood Lane $23,775,000

3150 Fairview Park Drive $89,250,000

2011 TOTAL (56 Buildings) $3,156,569,545

* Includes office portion only of WRIT portfolio sale. Sales price allocated as part of total portfolio transaction.

16 | Cassidy Turley

NOrTHerN VIrGINIABuilding Address Total Price Total SF Price / SF Seller Buyer

4050 & 4000 Legato Road $128,700,000

2675-2677 Prosperity Avenue $105,000,000

12061 Bluemont Way $118,000,000



12930 Worldgate Drive $65,000,000

1000, 1100, 1101, 1200, 1401,

1501 & 1515 Wilson Blvd; 1812 N Moore St,

1400 Key Blvd; 1701 N Fort Myer Dr

$1,221,650,419

601 North Fairfax Street $21,000,000


11130, 11180 & 11190 Sunrise Valley Drive $63,000,000

8283 Greensboro Drive $73,500,000

1310, 1320, 1330 & 1340 Braddock Place $101,000,000

14420, 14428 & 14426 Albemarle Point Place * $28,713,126

2000 & 2002 Edmund Halley Drive $50,500,000

1616 N Fort Myer Drive $145,500,000

1881 Campus Commons Drive $64,400,000

1764A, 1764, 1768, 1755-1757 & 1761 Old Meadow Road $138,550,000

7700 Leesburg Pike $15,000,000

6400 & 6402 Arlington Boulevard $81,526,000

44084 Riverside Parkway $8,250,000

12700 Sunrise Valley Drive $16,600,000

8000 Westpark Drive $27,200,000

45335 Vintage Park Plaza $5,284,000

1300 N 17th Street $205,000,000

700 S Washington Street $12,125,000

2050 Ballenger Avenue $24,696,000

4114 Legato Road $60,250,000

2300 Dulles Station Boulevard $58,800,000

2222 & 2216 Gallows Road $22,800,000

4755 Meadows Wood Lane $23,775,000

3150 Fairview Park Drive $89,250,000

2011 TOTAL (56 Buildings) $3,156,569,545

* Includes office portion only of WRIT portfolio sale. Sales price allocated as part of total portfolio transaction.





SuBurBAN MArYLAND

Building Address Total Price Total SF Price / SF Seller Buyer

4800 Hampden Lane $90,300,000

3 Bethesda Metro Center $150,100,000

20271 Goldenrod Lane $15,035,688

11141 Georgia Avenue $8,280,000

1400 Spring Street $11,500,000

8301 Professional Place $23,300,000

15245 Shady Grove Road $32,036,000

540 Gaither Road $35,230,000

9801 Washingtonian Boulevard $90,000,000

6010 Executive Boulevard $14,350,000



2011 TOTAL (12 Buildings) $507,381,688

2011 TOTAL DC METRO $7,232,510,855


18 | Cassidy Turley

SuBurBAN MArYLAND

Building Address Total Price Total SF Price / SF Seller Buyer

4800 Hampden Lane $90,300,000

3 Bethesda Metro Center $150,100,000

20271 Goldenrod Lane $15,035,688

11141 Georgia Avenue $8,280,000

1400 Spring Street $11,500,000


15245 Shady Grove Road $32,036,000

540 Gaither Road $35,230,000


6010 Executive Boulevard $14,350,000



2011 TOTAL (12 Buildings) $507,381,688

2011 TOTAL DC METRO $7,232,510,855





20 | Cassidy Turley

Multifamily

Real Capital Analytics reports that from January through December 2011, the DC Metro market saw 25,500 multifamily units trade hands for $4.7 billion, thus ranking DC Metro #1 nationally for total sales volume. DC investment sales had a record year, surpassing 2006 totals by $600 million. Institutional investors have helped fuel this growth, accounting for 44% of multifamily purchases in the DC market. Average cap rates have compressed, and they are delivering returns of 350 to 400 bps above the ultra-low 10-year treasury.

Multifamily vacancy rates have been declining. Vacancy rates were 3.5% in Northern Virginia, 4.5% in suburban Maryland, and 5.2% in the District. Strong market fundamentals have attracted not only investors but developers as well. After a lull in activity, multifamily building permits in the DC region are approaching levels not seen since 2006. The difference between permits issued in 2006 compared to those issued in 2011 is that multifamily permits last year have been primarily for rental housing instead of for-sale condominiums.

Outlook

• Market fundamentals remain strong for the DC multifamily market. With uncertainties in the economy and political climate, investment dollars will be attracted to stable metro markets such as DC.

• Population supports multifamily demand in DC. Over 67,000 people are expected to migrate to the DC metro area over the next five years. Varying product types across the region will be needed to accommodate different

types of renters. Additionally, strains on the current transportation infrastructure will not improve sufficiently, thus demand for transit-oriented locations and those close to major work centers will remain high.

• Homeownership rates peaked several years ago. In the near term, homeownership rates will remain at lower levels. Expect more households to rent by choice (especially true of the Gen-Y population). At least in the short to medium term, many will continue to have difficulties qualifying for a mortgage, saving for a down payment, and struggling with home affordability. That supports increased demand for rental units.

Multifamily investment performed extremely well in 2011.

With strong economic and employment fundamentals, large

metros like Washington, DC have attracted investors.

Composition of DC Metro Multifamily Buyers

Source: Real Capital Analytics

2% 6%

24%19%

31%

17%

32%25%

1%6%

29%

9%

43% 44%

4%

61%

38%

9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008 2009 2010 2011

Institutional

Cross-Border

PublicListed/REITs

Private

User/Other

After years of relative anonymity, multifamily has risen to prominence as one of the top asset classes of choice among Washington DC Metro area investors. It seems like every day we read about multifamily assets trading at very aggressive pricing. More and more buyers have begun focusing on this asset type and the large majority of them ask me the same question, “Are you worried about oversupply?” The short answer to this question is “No I am not worried about oversupply,” and there are three primary reasons why.

The first reason I am not concerned with oversupply is that there has been a drastic movement away from homeownership. Homeownership rates peaked several years ago and have been declining steadily ever since. By the numbers, there were 33.7 million rental households in the U.S. in 2000 and there are expected to be 46.8 million rental households by 2015. I expect this trend to continue and even accelerate in years to come. Gone also is the stigma of being a “renter” as more people, especially those in urban areas, have become “renters by choice.” Renters love the flexibility of not being tied down to a 30 year mortgage and the hassles and responsibilities that come with home ownership. This evolution toward renting makes it impossible to use past performance as an indicator of the future. People focus on “future pipeline vs. past absorption” but that is not an “apples to apples” comparison.

The second reason I am not concerned with oversupply is that many of the predicted pipeline of units will never materialize. Delta Associates predicts that 34,500 units are in the 36 month pipeline, which looks harrowing at first blush. However, when you dig a little deeper, a large majority of projects in the pipeline are suburban / rural deals that do not have any of their required approvals in place. Also, a significant portion of the “approved” deals in the pipeline are the wrong product type for their submarket and will never be able to get financed. So after further review, when you consider the deals in the pipeline that are likely to move forward, oversupply shouldn’t come into play.

The final, and perhaps most important reason, is that urban / multifamily living is becoming the new normal. The younger generation is looking for a 24/7 lifestyle where they can live, work, and play in a single location. Rising gas prices and long commutes have contributed to this change as well, as more young families seek an urban lifestyle. The age of suburbanization and growing homeownership is over. Those who fail to understand these new trends will miss opportunities or find themselves building / buying what is no longer in demand.

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

$5.0

DC Metr

o

New Yo

rk

Los A

ngele

sDall

as

Chica

go

Atlan

ta

Housto

n

Denve

r

Phoe

nix

Boston

Seatt

le

San F

ran

San D

iego

Bill

ions

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

Sales Vol Avg Cap Rate

2011 Multifamily Sales Volume


0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

DC MD VA

Apartment Vacancy RatesDC Metro

-5,000

-3,000

-1,000

1,000

3,000

5,000

7,000

9,000

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

# o

f U

nits

DC NoVA MD

net Demand for Apartments increasingDC Metro, Net Absorption

MultifamilyCorner

Capital CircleLargo, MD

Chris Doerr, Managing Director

22 | Cassidy Turley

Finance

Debt MarketsCassidy Turley’s debt specialists answer key questions affecting commercial real estate lending.

2011 FinAnCe PARAMeteRS

Product type LtV DSC Rate Amortization

Life Company 65% - 70% 1.25x 4.00% - 4.75% 25 - 30 years

Bank 70% - 75% 1.25x 2.75% - 3.25% I/O then 30 years

CMBS 70% - 75% 1.25x – 1.30x 5.25% - 5.75% I/O then 30 years

Agency 55% - 80% 1.25x- 1.55x 3.85% - 4.25% 30 years

John Campanella & Christian MilesSenior Managing Directors

Q: Who are the active borrowers in today’s debt markets?

JC: We are seeing strong activity from private equity funds. The Opportunity and Core Plus funds are focused on securing short-term debt (5 years or less) with maximum flexibility.

More specifically, the funds are looking for loans with no prepayment penalties or restrictions, flexible release provisions, and additional proceeds that are funded over the loan term for the TI/LC or capital expenses necessary to complete their business plans.

In order to achieve that level of flexibility, we have been working with bank balance sheets. The current macro environment has pushed the banks to be conservative on leverage, topping out at 65% LTV. The pricing for these types of loans is 200-300 basis points over Libor depending on the product type and market.

If a transaction requires leverage beyond 65% LTV, we are looking to the mezzanine market which can potentially push the combined LTV to 80%. The pricing for these types of mezzanine loans has been between 8% and 10%.

On the other end of the spectrum, the Core funds are targeting the lowest cost of capital at 50% LTV. They prefer the longer-term money. Today, the lower leveraged 10-year loan is pricing in the 4% range. The key strategy for the Core funds has been to keep overall fund leverage in the 30% range.

Q: Can properties that are still in lease-up or have significant lease roll get financing?

CM: Cassidy Turley has had significant success financing properties still in lease-up or with potential lease roll in the next 12 to 24 months. The secret for us has been tapping the resources of our leasing and research teams and getting the “behind-the-scenes” story about how the property competes in its submarket. Lenders really appreciate knowing the details of a specific property’s competitive advantages. This gives lenders a good feeling for the likely risks, and they will then respond more forcefully with how they will structure the loan to address those risks. On five different transactions in 2011, our ability to provide insight to lenders about tenants in the market and specific tenant inclinations about staying or leaving a property was the difference in our ability to get good financing terms for our clients.

Q: What do you expect out of the debt markets in 2012?

JC: The CMBS market will continue to tighten along with steady increase in demand in 2012. The CMBS pricing has been volatile this past year. In the first quarter of 2011, we saw pricing in the 5.25% - 5.50% range.

Over the summer, the market became unstable and pricing increased to 6.25% - 6.50%, then it started to stabilize in September. Since November, the 10-year pricing has dropped back to the 5% range, showing that the market is stabilizing.


For the most part, life companies have increased allocations for 2012. They will continue to dominate the larger transactions inside the beltway focusing on placing longer-term money. We will see 10-year pricing in the 4% - 4.5% range.

The smaller life companies will become more creative with structures by providing shorter-term loans (3-5 years) with floating and fixed rates. We expect them to begin pushing leverage to win the higher quality suburban deals with good sponsorship. Pricing for 10-year deals will be in the 4.5% - 5% range with LTV at 70% - 75%. Keep in mind, the larger life companies will continue to be conservative on leverage, but will win the larger Core deals, with the sweet spot at 60% LTV and 4% pricing for 10-year money.

Domestic Banks will continue to be active in 2012, as they are flush with capital. The 5-year terms are more attractive than ever with private equity funds, but the banks do have size restrictions. The typical bank will only hold $30 to $50 million and will syndicate out to other banks the remaining loan balance. Today, the bank syndications are done post closing, protecting the borrower from little, if any exposure. For a bank to stay competitive in 2012, they will need to be comfortable with mezzanine financing.

As long as we see CMBS staying healthy and providing the market with liquidity, the domestic banks will continue to be an excellent source of capital. We expect to see the European

banks return to the market later this year. When you combine the capital-rich domestic banks and the reemergence of the international banks, the result should be a very competitive loan environment in the second half of 2012.

Q: Are historically strong lender appetites for Multifamily loans ebbing in 2012?

CM: On the contrary, multifamily (MF) remains a highly sought-after property type by many lenders. Freddie originated 15% more MF loans in 2011 (vs. 2010), and they are forecasting another 10% jump in volume in 2012. Insurance companies remain underweighted in MF loans, so they will be competing for this business. CMBS typically doesn’t try to compete with the agencies, but they are very effective financing student housing and second-tier locations. The only cautionary note is that lenders know that Washington’s strong rental growth during the first half of 2011 has slowed. Lenders are asking tough questions about new supply. And lenders are also looking at whether MF properties generate enough net operating income to provide good coverage at loan maturity in a higher interest rate environment – say 5.5% or 6.0%. For MF properties in transition or being repositioned following a renovation, many of the banks are bidding aggressively for their business. The banks bring some expertise and confidence to such programs if they have agency lending programs of their own. All-in-all, 2012 should be another good year for MF finance.

1001 Fleet Street, Baltimore, MD

24 | Cassidy Turley

David WebbSenior Managing Director

Q: What is the market like for equity finance and how do you see 2012 trending?

DW: Equity for non-core transactions has generally followed swings found in the investment sales market. Transitional redevelopment plays and ground up development saw required investment yields widen in the August/September time frame of 2011, with a gradual improvement toward the end of 2011, which should continue through the first half of 2012. The frenzy toward apartment investment, while still strong, has been tempered somewhat by concerns over the development pipeline, and equity is being much more selective with a wider range of yields between core vs. opportunistic situations and submarkets. Equity finance investment

for other product types has also become slightly more cautious in light of concerns over government budget tightening. The current improvement in sentiment, however, should bring equity finance appetite back to the levels found in the first half of 2011 as the year progresses.

Q: What is happening with the mezzanine debt market and do you see more of those deals occurring in 2012?

DW: Mezzanine debt for construction has pulled back considerably, with most such lenders getting much more conservative in the terms they will offer. For all other mezzanine debt needs however, the lenders are as eager to lend as ever, with more aggressive rates and terms. Rates start in the high single digits for cash flowing deals or low LTV deals, with more opportunistic situations reaching into the mid or upper teens. Accrual mezz is available in Washington,

DC more than other submarkets, where lenders can focus more on LTV’s than cash flows. We believe the market for this money will continue to grow in 2012 with even more entrants, as the number of underwater CMBS deals reaching maturity explodes in the next two years.

Q: What does the development pipeline look like for 2012?

DW: 2012 will see more construction starts than we have seen in 4 or 5 years - mostly multifamily, but we believe that supply will be very spread out amongst the various submarkets and regions. Construction is good for general sentiment and the local economy, and many reports of the severe overbuilding coming are exaggerated. “The pipeline” often includes projects that are not ready with equity, debt or approvals, as opposed to real starts. We will also see several speculative office starts in 2012, though this will be a very manageable number for the most part.

Q: What about debt for development?

DW: Construction lenders are refreshed with a large amount of construction dollars to put out in 2012, and we expect banks to continue to grow more risk tolerant though they have no need to take on unreasonable levels of risk. The dwindling number of European banks in the construction debt arena will continue to provide the domestic banks with more opportunities and bank lending spreads will have little reason to move downward.

Finance

Development / Structured Finance

Crimson on Glebe, Arlington, VA


the CAPitAL StACk DeBt & eQuity ReLAteD teRMS

Bull Market Bear Market

(2006 - Mid 2007) (Mid 2007 - 2009) tODAy

Required Equity20% to a low of 5%

with mezz40% to a low of 25%

with mezz30% to a low of 10% - 15%

with mezz

Debt 80%+ 60% - 65% 70%

Mezzanine Financing Up to 95% Up to 70% - 75% Up to 85% - 90%

Rates 5% - 6% 7% - 8%3% - 5% for senior debt;

8% - 15% for mezz

Interest Only Term Up to 10 years None 5 years

Debt Service Coverage 1.15x interest only 1.25x to 1.30x 1.25x

Cash FlowUnderwriting

proforma incomeUnderwriting

in-place incomeUnderwriting

in-place income

25 Massachusetts Avenue, Washington, DC

26 | Cassidy Turley

2011 Capital Markets Achievements

Most impressively, we doubled our office sales volume from the prior year. This huge growth was largely driven by a wide range of domestic and foreign investors including life companies, public and private REITs, investment funds, pension fund advisors and wealthy individuals. Below are a few major achievements highlighting our team’s 2011 success.

2011 was an outstanding year for Cassidy Turley’s

Capital Markets Group. We completed $4.5 billion

in commercial sales, finance and structured finance

transactions for our clients.

Finance and Structured Finance

• Secured buyer financing for 20% of the investment sales transactions

• #1 in Development Finance in Washington DC Metro

• 73% market share

• 2011 brought two-year total for new construction financing to over 5 million square feet with $1.8 billion of projected development costs representing a mix of product types

investment Sales

• #1 in Investments Sales in the Washington DC Metro

• $3.1 Billion in transaction volume

• 45% market share

• 43 deals, 26% over $100M in size

h Highest sale price in DC - Waterfront Station ($356 million)

h Largest industrial sale in the region – WRIT Washington DC Portfolio ($350 million)

h Iconic building sale – National Press Building ($167.5 million)

Cassidy Turley Eastdil HFF JLL Transwestern Grubb & Ellis CBRE West, Lane & Schlager Other

45%

Market ShareWashington, DC Metro Area

Market ShareConstruction equity / Debt

Cassidy Turley HFF JLL CBRE (0%) Cushman & Wakefield (0%)

73%


1130 Connecticut Avenue Washington, DC


1331 L Street Washington, DC

1616 n Fort Myer Rosslyn, VA

12061 Bluemont Way Reston, VA

One Washingtonian Center Gaithersburg, MD

One Fair Oaks Fairfax, VA

One Virginia Square Arlington, VA

1300 n. 17th Street Rosslyn, VA

Investment Sales Closings

28 | Cassidy Turley

Capitol Plaza i Washington, DC

national Presss Building Washington, DC

Waterfront Station Washington, DC

1600 k Street Washington, DC

Dulles Station West Herndon, VA

Quintiles Plaza Durham, NC

WRit Portfolio Washington, DC Metro Area

Franklin Center Columbia, MD

Monument iii Herndon, VA



Braddock Place Old Town Alexandria, VA

Lee’s hill Spotsylvania County, VA

Meadows i Chantilly, VA

nottingham hall Durham, NC

Braddock Gateway Alexandria, VA

1140 & 1146 19th Street Washington, DC

3150 Fairview Park Falls Church, VA

601 new Jersey Avenue Washington, DC

601 north Fairfax Old Town Alexandria, VA

30 | Cassidy Turley

1255 23rd Street Washington, DC

Capitol Center Denver, CO

1901-1903 14th Street Washington, DC

915 F Street Washington, DC

Cedar hill and Columbia Office Virginia & Maryland

keystone technology Park Durham, NC

Pines of york Apartments Yorktown, VA

2115 & 2121 Wisconsin Avenue Washington, DC

8301 Professional Place Landover, MD



50 Broadway New York, NY

1001 Fleet Street Baltimore, MD

1128 16th Street Washington, DC

Banner Life Urbana, MD

1735 New York Avenue Washington, DC

One East Pratt Baltimore, MD

2115 & 2121 Wisconsin Avenue Washington, DC

1600 K Street Washington, DC

1300 N. 17th Street Rosslyn, VA

Finance & Structured Finance Closings

32 | Cassidy Turley

Finance & Structured Finance Closings

8301 Professional Place Landover, MD

McPherson Building Washington, DC

Pines of York Apartments Yorktown, VA

National Cancer Institute Frederick, MD

Trinity Center Chantilly, VA


Empire Apartments Washington, DC

One Washingtonian Center Gaithersburg, MD

25 Massachusetts Avenue Washington, DC


Capital CircleLargo, MD

Braddock Gateway Alexandria, VA

Capital Circle Largo, MD

Crimson on Glebe Arlington, VA

Landmark Gateway Alexandria, VA


Brown’s Wharf Baltimore, MD

H Street Washington, DC

Highland East and West Washington, DC

River Marsh Cambridge, MD

Shops @ Dakota Crossing Washington, DC

Pearl Street Plaza Bethesda, MD

34 | Cassidy Turley

Cassidy Turley Thanks These Clients For Our Success in 2011!

Brown’s Wharf, LLC


Cassidy Turley Thanks These Clients For Our Success in 2011!

The Equitable Place, LLC

Cassidy Turley Services

Integrated, Tailored Solutions

• Cassidy Turley provides clients with a full suite of comprehensive real estate solutions, including investor services, occupier services,

specialty services and industry-specific services.

• By partnering with Cassidy Turley, clients gain a true business advocate.

• Our nimble approach and service delivery model allow our professionals to devise the most appropriate, comprehensive response to

each client’s needs.

Core Services• Corporate Services

¾ Facilities Management

¾ Portfolio Administration

¾ Project Management

¾ Strategic Consulting

¾ Transaction Management

• Capital Markets

¾ Debt Placement

¾ - Investment Sales

¾ - Structured Finance

• Project Leasing

• Project and Development Services

• Property Management

• Tenant Representation

Real Estate• Industrial

• Land

• Multi-family

• Office

• Retail

Practices and Specialties

Our practice groups include professionals with considerable expertise unique to particular property types and within specific industries.

• Auction Services

• Distressed Assets

• Financial Advisory

• Food and Beverage

• Golf and Resort Properties

• Government Contracting

• Government Services

• Healthcare

• Higher Education

• Hospitality

• Investment Services

• Law Firm

• Life Sciences

• Location Advisory and Incentives

• Mission Critical

• Net Lease

• Not-for-profit

• Private Client

• Supply Chain Logistics

• Sustainability Services

36 | Cassidy Turley


Our Vision and Core Values

Our vision is to be a world-class provider of fully integrated commercial real estate services. Supported by outstanding resources, our talented people

meet client needs with responsiveness, adaptability, excellent execution and unwavering commitment to our clients’ success.

Fundamental to our success are our core values – our cornerstone principles. These principles reflect what is most important to us as a firm and are

the foundation of our company’s culture.

Exceptional Results for Our Clients

We do whatever it takes, wherever it takes us.

Dedication to Our Communities

We don’t just work in our communities, we belong to them.

Growth for Our Company

We grow to get better, not just bigger.

Energizing Workplace for Our Associates

Our people are more than assets; they are Cassidy Turley.

Cassidy Turley’s global reach beyond North America extends to more than 70 offices in over 25 countries across Europe and Asia-Pacific, through its

partnership with GVA, the founder and majority shareholder of GVA Worldwide. GVA Worldwide is a leading global services company with over 2,000

real estate professionals, including many focused on institutional real estate sales and investment throughout the world.

AustraliaAustriaBelgiumChinaCyprusDenmarkEstonia

FinlandGermanyGreeceHong KongHungaryIndiaIreland

ItalyLithuaniaNetherlandsNew ZealandPolandPortugalRomania

RussiaSwedenSwitzerlandUnited Kingdom

Cassidy Turley Office Locations

About Cassidy TurleyCassidy Turley is a leading commercial real estate services provider with 3,400 professionals in 60 offices nationwide. The company represents a wide range of clients—from small businesses to Fortune 500 companies, from local non-profits to major institutions. The firm completed transactions valued at $17 billion in 2010, manages 455 million square feet on behalf of private, institutional and corporate clients and supports over 25,000 domestic corporate services locations. Cassidy Turley serves owners, investors and occupiers with a full spectrum of integrated commercial real estate services—including capital markets, tenant representation, corporate services, project leasing, property management, project and development services, and research and consulting. In 2010, the firm enhanced its global service delivery outside of North America through its partnership with GVA. Please visit www.cassidyturley.com for more information about Cassidy Turley.

Atlanta, GA a

Austin, TX b

Baltimore, MDBaton Rouge, LA b

Bethesda, MDBoston, MABurlingame, CACapitola, CACarlsbad, CACharlotte, NCChicago, IL (2)c

Cincinnati, OHColumbia, MDColumbus, OHDallas, TX (2) c

Dayton, OHDetroit, MI b

Denver, CODenver Tech, COEl Cajon, CAFort Collins, COHouston, TX (2) c

Indianapolis, INKansas City, MOLouisville, KYMilwaukee, WI (2) c

Minneapolis, MNMonterey, CANashville, TNNew York, NY

Oakland, CAOklahoma City, OK b

Otay Mesa, CAPalo Alto, CAParsippany, NJPhoenix, AZPleasanton, CARaleigh, NCRedwood City, CARochester, NY b

Sacramento, CASalinas, CASan Antonio, TX b

San Diego, CA (2)San Francisco, CA

San Jose, CASan Rafael, CASanta Rosa, CASomerset, NJSt. Louis, MOStamford, CTTampa, FLTysons Corner, VAWalnut Creek, CAWashington, DC

a Hotel AG - hotel investment affiliateb Limited service locationsc Limited service at 1 of 2 locations

Discover Leadership. Discover Excellence. Discover Success.

Copyright © 2012 Cassidy Turley. All rights reserved.

Washington, DC / Tysons Corner, VA / Bethesda, MD

202.463.2100 / 703.770.3400 / 301.424.2100

www.cassidyturley.com

Documents

2012 State Of The Capital Markets: DC Metro