on point Miami Office Report Q Americas Research

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1 on point Americas Research Miami Office Report Q Local office market fundamentals mirrored the nation s: stagnant office growth with increasing space options for tenants, corresponding downward pressure on rents and upward offerings for incentives. On the new supply front, Miami led all major U.S. markets in terms of its under construction square footage as a percentage of existing inventory 6.0 percent compared to the national average of 1.0 percent.

2 Jones Lang LaSalle On Point Miami Office Report Q Contents at a glance Contiguous blocks Supply, demand and pricing statistics Submarket analysis Sales Property clock Construction pipeline Construction maps New supply timeline

3 Jones Lang LaSalle On Point Miami Office Report Q Miami overview The economy in 2009 was simply unable to create demand. Expect continued weak labor market conditions (downsizing and continued delays in hiring) which may have the nation s office landlords facing vacancy rates that could reach 20 percent by next year with broad-based growth not expected until Miami s office market fundamentals reflect the same national trends. The year of 2009 will have recorded several historic highs via the consequential relationship of intensifying negative absorption and rising vacancy. This has coincided closely with rising unemployment and the subsequent decline in office demand. Leasing activity during 2009 totaled nearly 1.5 million square feet of space down by approximately 50.0 percent over Negative absorption well exceeded the 1.0 million square foot mark at the end of the year and pushed overall vacancy, which includes sublease space, beyond 18.0 percent. Typically making its debut as the economy slides, the amount of sublease space has hovered at just under 700,000 square feet over the last three quarters. Although comprising only 2.0 percent of total vacancy, these levels have not been seen since Rental rate strike prices among competitive institutionally owned Class A product should stabilize for the near term at the bottomed-out rates achieved over the last two quarters. Look to increased rental rate abatement and tenant improvement allowances to finalize transactions as both landlords and tenants remain eager to complete negotiations - many of which have been out in the market for an extended period of time. One of the few diamonds in the rough is that, overall, operating expenses have come down. With the exception of the one CBD building that has indefinitely deferred its completion date, all of the product presently under construction is scheduled for a 2010 delivery. This will add a total of 1.4 million square feet of new and largely empty space to Miami s office inventory, prolonging tenant favorable market conditions. Within the CBD, the Class A inventory will increase by 17.0 percent. Tenants reaped the benefits of what was a tumultuous year for landlords. In this environment tenants asked for everything, and frequently received it, in the form of low lease rates, unprecedented rent concessions and generous tenant improvement allowances. This trend will likely continue given the sheer force of supply and demand.

4 Jones Lang LaSalle On Point Miami Office Report Q Miami overview Supply continues to increase as new construction delivers with marginal pre-leasing and as tenants return their surplus space to the market. Demand remains low as new-to-market activity is limited and existing tenant space requirements shrink. This will continue to fuel a very tenant favorable environment. However, caution is necessary. What was historically unheard of is now standard operating procedure: tenants must undertake due diligence to determine a building s debt structure and the financial stability of building owners. The market did post good transactional activity among large (20,000+ square feet) users, with 30 such leases signed during the year. Unfortunately, overall demand continued to be superseded by the pace of downsizing and vacating tenants. On the pricing front, it has been a punishing year for landlords. In the more stabilized, well located buildings, landlords have hopefully reached a bottom threshold for rental rate reductions but will continue to face pressure on the concession front. Market Distinctions Among the nation s best skylines, Miami ranked third in the U.S. behind New York City and Chicago, according to the Almanac of Architecture and Design, as reported in Miami Today. Compared worldwide, the city came in at number 19. Florida has applied for a $2.5 billion request to participate in the first stages of developing a high-speed rail line to extend from Miami north to Orlando and Tampa. As reported in the Miami Herald, trains would run in between the respective city s airports with the Miami terminal being the Miami Intermodal Center, now under way just east of the city s airport. Equally important on the infrastructure front are the substantial expansion and upgrades underway at the Port of Miami to the tune of $1.0 billion. Completion is to coincide with the Panama Canal s 2014 expansion, deemed to be a game changer for container carriers. As indicated by the Port s director, trade with China is anticipated to shift more from Pacific to Atlantic ports. In addition to being the first port of call for post-pana-max vessels, Miami will be one of only three U.S. seaports on the Eastern Seaboard to accommodate the world s largest container vessels. On the sustainability front, a recent survey of commercial real estate executives whose firms drive demand for office space with portfolios totaling billions of square feet across the globe indicated that 74.0 percent of companies will invest in energy and sustainability in owned buildings and 60.0 percent of respondents are adopting workplace strategies to meet sustainability goals while reducing overall occupancy costs. The recent global survey was conducted by CoreNet Global and Jones Lang LaSalle. Kurt Keaton Market Director, Florida

5 Jones Lang LaSalle On Point Miami Office Report Q Miami property clock Brickell, Downtown (CBD); Coral Gables Coconut Grove Miami Airport Aventura, Kendall, Miami Lakes Slowing market Falling market Rising market Stabilizing market Miami Beach Clock description This diagram illustrates where Jones Lang LaSalle estimate each prime office market is within its individual rental cycle at the end of the quarter Markets can move around the clock at different speeds and directions The diagram is a convenient method of comparing the relative position of markets in their rental cycle The position is not necessarily representative of investment or development market prospects The position refers to prime face rental values Q positions Marketed rents continued to be lowered to draw demand to buildings Options for tenants remained elevated and will continue to do so for the remainder of 2010

6 Jones Lang LaSalle On Point Miami Office Report Q Miami regional definitions The Miami market is composed of the Downtown and Brickell areas (CBD) and seven major Suburban submarkets. Central Business District: Brickell, Downtown Suburban Submarkets: Aventura/North Miami, Coconut Grove, Coral Gables, Kendall/Dadeland, Miami Airport, Miami Beach, Miami Lakes

7 Jones Lang LaSalle On Point Miami Office Report Q Miami space statistics Year-end 2008 overall vacancy (%) 2009 completions (SF) Current inventory (SF) Overall net absorption (SF) YTD overall net absorption (SF) YTD overall net absorption (% of inventory) Overall vacancy Overall asking rent (gross $ PSF) Under construction (SF) CBD Brickell 13.6% 0 5,195,174 (4,260) (109,105) -2.1% 15.7% $ ,162,992 Downtown 10.9% 0 6,318,985 (90,092) (310,677) -4.9% 15.8% $ ,000 CBD market totals 12.1% 0 11,514,159 (94,352) (419,782) -3.6% 15.8% $ ,862,992 Suburban Aventura / North Miami 16.3% 0 1,032,164 18,390 (9,436) -0.9% 17.2% $ Coconut Grove 13.1% 0 1,011,964 (15,048) (95,689) -9.5% 22.6% $ Coral Gables 12.0% 0 4,952,988 (95,551) (391,232) -7.9% 19.9% $ Kendall / Dadeland 14.6% 0 2,856,678 91,022 4, % 14.4% $ Miami Airport 12.9% 478,500 9,272,329 (14,449) (301,902) -3.4% 20.7% $ ,000 Miami Beach 14.1% 0 1,881,938 (31,007) (64,456) -3.4% 17.6% $ Miami Lakes 20.1% 0 942,561 (17,330) (30,023) -3.2% 23.3% $ Suburban market totals 13.5% 478,500 21,950,622 (63,973) (888,609) -4.1% 19.4% $ ,000 Market totals 13.0% 478,500 33,464,781 (158,325) (1,308,391) -4.0% 18.2% $ ,012,992 * Data reflects historical adjustments, reclassifications and conversions

8 Jones Lang LaSalle On Point Miami Office Report Q Miami CBD Brickell Downtown

9 Jones Lang LaSalle On Point Miami Office Report Q Miami CBD boundaries Brickell North by Miami River, east by Biscayne Bay, south by SW 15th Road, west by I-95. Downtown North by I-395, east by Biscayne Bay, south by Miami River, west by I-95.

10 Jones Lang LaSalle On Point Miami Office Report Q Brickell Supply Choice buildings comprising Brickell s Class A competitive set total just over 3.0 million square feet of office space. They include: 701 Brickell, 801 Brickell, Mellon Financial Center, 1221 Brickell, Brickell Bay Office Tower, Courvoisier Centre I and II, Four Seasons Tower and Espirito Santo Plaza. Submarket boundaries map Since the end of 2005, both direct and sublet Class A vacancy had remained in the single digits among the trophy towers. On a direct basis, this trend had held until this quarter s 10.0 percent rate. Overall vacancy which includes sublease, however, continued to track in the double digits all year and reached 11.7 percent at year-end. Contiguous blocks in excess of 20,000 square feet had been confined to just one building 1221 Brickell. While 1221 still contained the largest amount of vacant space, 801 Brickell has up to 34,000 square feet available Brickell Currently contains the market s largest contiguous Class A vacancy to include the entire eighth and seventh floors and a portion of the sixth floor totaling nearly 45,000 square feet. Vacancy remained unchanged from the last two quarters at 24.0 percent. By year-end 2010, look to additional supply coming from 1221 Brickell as one the region s largest office users law firm Greenberg Traurig will relocate to the Met 2 development now under construction in Downtown. This would be a significant vacancy of 155,000 square feet Sublease space at 1221 Brickell includes a Bank of America (former Countrywide) office at 5,700 square feet on the 11th floor, with term through In addition, a 5,000 square foot ground floor retail space is on the market, a result of a relocation for a division of Banco Popular. With term through 2016, the space is now being quoted at $35.00 per square foot, full service down from last quarter s $40.00 per square foot asking rate. Key market indicators Stock Overall net absorption Overall vacancy rate Average asking rent Under construction Change from previous quarter 5,195,174 SF -4,260 SF 15.7% $35.88 PSF 1,162,992 SF

11 Jones Lang LaSalle On Point Miami Office Report Q Brickell Direct vacancy at Courvoisier Centre, the two-building Class A asset located on the exclusive island of Brickell Key, was reduced to 18.0 percent. The largest contiguous direct space continues to be the entire 2nd floor at the 501 building at 18,500 square feet, followed by 13,400 on the 7th floor at the 601 building. Upcoming availabilities include a prime 8,500 square foot office on the 10th floor of Courvoisier Centre II. On the sublet front, a portion (9,700 square feet) of the Live Nation space was leased this quarter to law firm Ehrenstein Charbonneau Calderin. At 801 Brickell, a contiguous block of office space comprising 34,000 square feet is now available. After midyear s $1.00 reduction to $39.00 per square foot, the current quote of $38.50 per square foot, full service, was unchanged over last quarter. However, upper floor rates are still being quoted at $40.00 to $42.00 per square foot. New supply being advertised directly from the landlord (but available in July 2010) totals 30,000 square feet. This space belongs to noted architectural and design firm, Arquitectonica. Comprising 17,900 square feet (11th floor) and 10,500 square feet (6th floor), the space had been available as sublease. Like 701 Brickell, 801 is a trophy TIAA-CREF owned building. The asset has completed a $1.0 million substantial lobby renovation and has also budgeted for 2010 to go through the LEED certification process. Average rental rates (Class A vs. Class B) $ psf $50 $45 Class A rental rates Class B rental rates $40 $35 $30 $25 $20 $15 $10 $5 $ Overall new deliveries / overall net absorption / overall vacancy rates sf in thousands New deliveries YTD Net absorption YTD Vacancy Class A YTD Vacancy Class B YTD % % % % 701 Brickell continued to maintain a respectable occupancy rate at 93.0 percent. Long time tenant, Citco, renewed its 26th floor offices this quarter for 14,500 square feet. The largest spaces being marketed at the end of the year were confined to two separate offices on the second and third floors at 8,500 square feet each. By first quarter 2010, nearly 16,000 square feet will open up on the 13th floor. Unchanged over the last year, only one small (4,500 square feet) sublet remains. The term, however, is only through year-end The TIAA-owned asset is considered the premiere tower in the Brickell corridor % 5% 0%

12 Jones Lang LaSalle On Point Miami Office Report Q Brickell With the exception of a small retail space on the ground floor, Mellon Financial Center remains fully occupied on a direct basis. However, this building represents a large portion of the Brickell submarket s lease expirations over the next 20 months, including Hunton & Williams (70,000 square feet), Wells Fargo, formerly Wachovia Securities, (41,000 square feet) and BNY Mellon (50,000 square feet). On a direct basis, 1401 Brickell, also known as Banco Santander, remains fully occupied. Also fully leased on a direct basis was the Four Seasons Hotel & Tower. Year-end availabilities consisted of three relatively small subleases all of which were located on the 14th floor. Vacancy continued to rise at Espirito Santo Plaza, reaching nearly 13.0 percent this quarter, up from four percent at year-end Its largest contiguous office space is now the entire eighth floor at nearly 19,000 square feet. Still available and considered to be the building s prime water view office is the 15th floor, 6,300 square foot offices of U.S. Trust who has been acquired by Bank of America. While the space still carries a $47.00 per square foot quote, the average asking rate at the building has come down from $45.00 per square foot to $43.71 per square foot, full service. Posting single digit direct vacancies for the last seven years, only a few direct spaces are left at the Class B 777 Brickell. At 97.0 percent occupancy, the majority of space being offered is the contiguous 14,263 square foot SunTrust sublease, which is up slightly from last quarter due to the space being re-measured. The largest direct space is 5,700 square feet. Direct spaces are being offered at $38.00 per square foot, full service while below-market sublease pricing was $30.00 per square foot (also full service). With the opening up of a portion (8,000 square feet) on the ninth floor combined with the full 10th floor, a 24,500 square foot contiguous office is now available at the Class B Rivergate Plaza (444 Brickell) making it the largest contiguous Class B availability in Brickell. As with most assets, pricing has been reduced yet again from last quarter s $29.00 per square foot to the current $27.00 per square foot. During year-end 2008, asking rates were $31.00 per square foot. This quarter s leasing activity totaled nearly 4,600 square feet comprised largely of renewals and one new, small user. Vacancy at the Class B 1428 Brickell building stood at 36.0 percent, nearly all of which was direct space. The sixth and seventh floors remain available at 7,200 square feet each. Current pricing at the project is $25.00 to $27.00 per square foot, full service. Brickell Bay Office Tower s direct occupancy of 88.5 percent remained unchanged from last quarter. The largest contiguous space at the Class A asset is now 12,000 square feet. Full service asking rates have also been reduced this quarter, averaging $41.34 per square foot, down from $44.37 per square foot. At the end of fourth quarter 2009, one of the building s largest tenants, Republic Federal Bank, was closed by the Office of the Comptroller of the Currency with the institution reopening under First United Bank. At 19.0 percent vacant, 800 Brickell has just under 7,700 square feet available as its largest contiguous office space. A new 6,800 square foot Penthouse became available at year-end, a result of the dissolution of criminal defense firm Bierman Shohat. No office transactions were posted at year-end, although Au Bon Pain on the ground floor expanded by 1,300 square feet. The café and bakery opened at midyear. Vacancy remained in the single digits at the Class B Brickell Bayview Centre with the largest contiguous space being the full 19th floor. Totaling 16,000 square feet, the asking rate remained at $30.00 per square foot. This building is located just outside the Brickell core on 80 S.W. 8th Street and immediately adjacent to Mary Brickell Village.

13 Jones Lang LaSalle On Point Miami Office Report Q Brickell 999 Brickell is offering one of the most generous incentives a five percent broker bonus. The building posted one of the highest Class B vacancies at year-end (33.0 percent). The largest contiguous office is 9,200 square feet. While the Penthouse has an above average asking rate ($34.00 per square foot), the bulk of availabilities are being offered at $29.50 per square foot. All rates are full service. While One Broadway at Brickell, located at 15th Street and Brickell Avenue, has a completed residential building, the project is constructing an adjacent 35-story office tower. Known as 1450 Brickell, the Class A tower declared its first tenant - Bilzin Sumberg, who had originally committed to the competing Brickell Financial Center for 115,000 square feet which is also under construction. Signed during third quarter 2009, the law firm will take 80,000 square feet and will occupy floors 22 through 24 and a portion of the 21st floor. Final completion of the building has been moved from first to second quarter of The building will comprise 570,000 square feet of office space and ground floor complementary retail space.. The site offers tenants bay views and sits across the street from the prestigious Four Seasons hotel, residential condominium and office complex. The 3.5 acre site was purchased for $50 million in With excellent exposure, building signage remains an attractive and important draw. The last Class A product added to Brickell s inventory was Espirito Santo Plaza s early 2004 opening. Also going green, the building received gold precertification. Ground floor retail includes Pieduck s Pizza (opened) and two planned eateries that will complement the office tenant amenities an Irish pub and a steak and seafood restaurant. The under construction Brickell Financial Centre with no pre-leasing will comprise nearly 600,000 square feet and is being developed by the Foram Group, who is seeking LEED certification. Tenant amenities will include ground floor restaurants and a significant one-acre green or open space at its doorstep. While completion dates for the Class A asset have been changed several times, third quarter 2009 brought an official announcement that a final completion date will now be indefinitely delayed. Demand Following the statistical quarterly deadline, several pre-leasing commitments were signed at the under construction 1450 Brickell asset. They included Bancaja for 7,500 square feet, Ratzan & Rubio for 6,300 square feet and Agri Commodity Trade for 4,500 square feet. This will increase the trophy asset s pre-leasing from 14.0 percent to 17.3 percent. On the Class B front, Brickell Bayview Centre renewed Regus Business Centers for 16,000 square feet this quarter and signed a new lease for a 3,000 square foot lease for attorney John Arrastia, Jr. P.A. At Courvoisier Centre, Traffic Sports renewed its space for 3,500 square feet while new users Alpina Foods and Grupo Mega joined the buildings to occupy another 4,750 square feet. 777 Brickell signed two renewals this quarter: Coty Exports for 7,000 square feet and Florida based litigators, Devine Goodman Rasco & Wells, for 6,000 square feet. New to the market tours at year-end included Banco Sabadell for 50,000 square feet. Sabadell is acquiring the Mellon United division of BNY Mellon. In addition, H.I.G. Capital has a CBD search for 40,000 square feet while Oppenheimer has a new 20,000 square foot requirement both here and in Coral Gables. JP Morgan Chase has a substantial CBD requirement for up to 50,000 square feet. Additional current large office requirements in the CBD also include VITAS Hospice Services, who recently renewed a short term lease for 80,000 square feet and remains in the market for a downsized 50,000 square foot search. Looking in the 30,000 square foot range is Wells Fargo (formerly Wachovia Securities). Barclays Bank is now seeking 25,000 square feet while RTKL also has a 25,000 square foot requirement. Onboard Media, owned by the world s largest luxury-goods retailer, LVMH, has a 15,000 square foot CBD requirement along with Big Brothers, Big Sisters for up to 15,000 square feet. The non-profit is also touring in suburban Miami Airport and Coral Gables markets.

14 Jones Lang LaSalle On Point Miami Office Report Q Brickell With Bilzin Sumberg out of the market, noted law firm, Hunton & Williams LLP, for up to 70,000 square feet, remains as Miami s largest requirement. Pricing The Class A set has traditionally been defined primarily as stabilized office buildings with minimum average gross rental rates above the $40.00 per square foot threshold range. During the few quarters preceding midyear 2009, seven of the nine buildings posted asking rates averaging $45.00 per square foot. By year-end, none exceeded $45.00 per square foot with the combined total averaging $40.23 per square foot. Despite its relatively low vacancy rate, the premier 701 Brickell tower has restructured its pricing by roughly reducing asking rates by $2.00 per square foot to $38.00 per square foot on the low end to $46.00 per square foot for higher floors. Quoted rental rates at the Class A Courvoisier Centre have been adjusted to $38.00 to $40.00 per square foot, full service. Substantial below market pricing is being offered for the Live Nation s remaining 7,852 square foot sublet with an asking rate in the mid to low $30.00 per square foot range. Although pricing at 1221 Brickell had remained unchanged during the first half of the year, reductions were made last quarter on the lower end of the full service quoting spectrum from $36.00 to $34.00 and ranges to a high of $43.00 per square foot (depending upon the height in the building). The asking rate for the 11th floor 5,700 square foot Bank of America sublet has been reduced again to a bargain $25.00 per square foot at one point, the quote was $32.00 per square foot. All quotes were on a full service basis. Significant lease transactions Regus Business Centers Brickell Bayview Centre Citgo 701 Brickell Ehrenstein Charbonneau Calderin Courvoisier Centre Bancaja 1450 Brickell (Under Construction) Coty Exports 777 Brickell Ratzan & Rubio 1450 Brickell (Under Construction) Large contiguous availabilities 1221 Brickell 801 Brickell Rivergate Plaza Espirito Santo Plaza Courvoisier Centre 16,000 SF 14,500 SF 9,700 SF 7,500 SF 7,000 SF 6,300 SF Class A 45,000 SF Class A 34,000 SF Class B 24,500 SF Class A 19,000 SF Class A 18,500 SF

15 Jones Lang LaSalle On Point Miami Office Report Q Brickell Overall vacancy in Brickell s Class B sector was the second highest in Miami, just behind suburban Coral Gables. Almost half of the buildings are reporting vacancy rates above 25.0 percent. Among the hardest were 1101 Brickell, 1428 Brickell and 999 Brickell. Following suit, average direct rental rates have declined by nearly 10.0 percent over the last 12 months to the current $31.58 per square foot. Class B rates for direct space at 800 Brickell was $36.00 to $38.00 per square foot. For the new Penthouse office, look to below market sublease pricing of $29.00 per square foot. Trends Lower effective Class A rental rates achieved over the last two quarters should stabilize at the current threshold for the near term. Landlords can anticipate further pressure for providing increased concessions during 2010 as the Brickell sector faces a significant jump in new inventory and corresponding vacancy. Tours comprising 620,000 square feet of space are presently in play throughout the CBD. Most are existing users with downsized requirements. While this will not aid absorption or vacancy, the majority (two-third s) are large users with space requirements of 20,000 square feet or greater. While the new development projects are attempting to achieve base rents of $40.00 per square foot, significant concessions are being used to lure in-market relocations that are driving rental rates to the mid- $30.00 levels for anchor tenants in the initial few years of the lease term for tenants willing to commit to 15-year terms. This new wave of gross over development in a soft market has introduced lease terms beyond a traditional 10-year maximum in order to justify rental abatement packages and tenant improvement allowances that have, to date, been far beyond those traditionally offered in the market. Expect existing landlords to leverage their stabilized operating expense positions and efficiencies and offer value pricing to secure their existing tenants for longer terms. In order to remain competitive with Met 2 and Brickell Financial Centre, pricing for the under construction 1450 Brickell has been restructured from triple net back to full service quotes, ranging from $40.00 to $50.00 per square foot. Many of the existing Class A buildings in the market are pursuing LEED EB certification. 701 and 1221 Brickell anticipate certification in early In addition to the benefits of a reduced carbon footprint on the environment, existing tenants in those buildings will enjoy the benefits of reduced operating expenses in years to come resulting in lower total occupancy costs. Following the large wave of lease expirations, the time period of 2013 and 2015 is expected to contain the next big wave of lease rollovers. However with the current plethora of early lease renewal activity in existing buildings, this pool is expected to be reduced significantly. Concerns for the long-term financial viability of ownership are motivating existing tenants to secure their long-term office needs with their more stabilized, financially strong, existing landlords. The lack of available financing in the capital markets has left many tenants and brokers concerned about landlords with mortgage principle payments coming due. Lenders have been reluctant to negotiate extensions creating concerns about the viability of certain landlords. Consequently, tenant and brokers are spending more time in their due diligence process to qualify landlords prior to engaging in negotiations.

16 Jones Lang LaSalle On Point Miami Office Report Q Brickell Phase I of the much anticipated 200,000 square foot mixed-use retail project, Mary Brickell Village, is open and occupied by a majority of its tenants. In addition to a Region s Bank, several major restaurants have also opened national chain, P.F. Chang s China Bistro; Oceanaire Seafood Room, Grimpa Steakhouse and Starbucks. Newly opened eateries also include Blue Martini and Rosa Mexicana. Publix opened its near 32,000 square foot store last quarter - its third Brickell location. Additional tenants will include an LA Fitness scheduled for an early 2010, 30,000 square foot occupancy. The area has become a successful entertainment destination. While no confirmed construction plans have been announced, the proposed residential component of the development, named Skyline, will rise 36 stories and include 369 luxury condo units to be built on top of the seven-story parking garage. One of the oldest hotels on Brickell Avenue, the Sheraton Biscayne, has been bulldozed and replaced with three towers comprising residential condominiums, 129 luxury hotel units to be operated by Viceroy (opened during first quarter 2009), 25,000 square feet of retail space and a 14-story garage. Developed by the Related Group, the 2.0 million square foot Icon Brickell had internationally renowned Philippe Starck implementing his design throughout the project. This marks Related s third residential Brickell development. Press announcements indicated The Related Group purchased the five-acre waterfront site in 2004 for $94 million from MassMutual. At year-end 2008, however, the Daily Business Review reported that completion dates have been pushed to 2009 and 2010, resulting in a portion of the condo buyers suing to recover their deposits. During third quarter 2009, the South Florida Business Journal further noted that the developer had negotiated with its lenders to offer a 30.0 percent discount to the majority of its contract holders in the 1,800-unit Icon project. The most recent press indicated that less than six percent of the units have sold to date. As such, the owner, Related Group, is nearing final negotiations with the lender for control of the project. The 230,000 square foot Latitude One Office Condos, located several blocks west of the Brickell core, reflects the general trend in Miami of excess office condo space having to be leased. While reduced from midyear 2009, CoStar is showing approximately one-quarter or 57,000 square feet of the building s space being marketed for lease. Asking full service lease rates averaged $37.51 per square foot at year-end. One of the newer Penthouse offerings, comprising 5,600 square feet, has a bargain full service rate of $29.00 per square foot. Completed in 2007, the average asking sale price for office condos according to CoStar was $609 per square foot. Today, 73,000 square feet have an average sale price of $345 per square foot. The office condo conversion 1200 Brickell continued to make headway with robust sales. The most recent reported by the Daily Business Review indicated offices comprising just under 24,000 square feet traded for $6.3 million at year-end. This followed a previous posting of offices totaling 11,000 square feet of small spaces. Acquired by various entities of 1200 Castle, the sale prices ranged from approximately $323 to $351 per square foot. This reduced the current for lease availabilities from last quarter s 42,000 square feet to the current 12,000 square feet.. Look to additional lodging amenities with the 2011 development of a new Hampton Inn & Suites, to be located just west of Brickell Avenue at S.W. 12th Street. The 15-story hotel will contain over 200 rooms. Ground floor retail space is also planned for the project which will also seek LEED certification. At year-end 2009, the developers were waiting to sign the loan for the $45 million project. On the hotel redevelopment front, look to a repositioned neighborhood boutique facility to be known as Hotel Urbano through a renovation of the long-standing small (previously Hampton) Inn located at the southern end of Brickell Avenue s established residential district at the entrance to Key Biscayne and Coconut Grove. To be opened by first quarter 2010, the 65-room facility will fall within the mid-priced range and will feature a more hip South Beach feel via a proposed art gallery and pool/private cabanas/fire pit/alfresco dining area.

17 Jones Lang LaSalle On Point Miami Office Report Q Downtown Supply Choice buildings comprising Downtown s Class A Tier I competitive set total more than 2.6 million square feet of office space. They include: Wachovia Financial Center, Miami Center, and Bank of America Tower at International Place. Submarket boundaries map Vacancy was up substantially among the trophy towers. Only one of the assets, Wachovia Financial Center, posted a single digit direct vacancy rate at year end. The majority of availabilities remain on a direct basis. The bulk of vacancy is at the Miami Center building with 169,000 square feet or nearly 22.0 percent of its inventory. This was the result of a court- appointed receivership seizure of long time tenant Stanford Group s four floors which were returned directly to the landlord at midyear 2009, marking the striking rise in vacancy at the trophy building. The building increased its direct availabilities by nearly five times due solely to the vacating of 94,000 square feet (its largest contiguous space). This vacancy will see an additional increase in the second quarter when Verizon s lease expires on space that was previously used for telecommunications on the second and third floors. Existing sublease opportunities at Miami Center include the law firm space of Zuckerman Spaeder, which closed its ninth floor office due to the defection of partners to a rival firm, as reported in the Daily Business Review. While a portion of the space was leased last quarter, 14,000 square feet remain available. The term is through late At the top of the list for occupancy is Wachovia Financial Center, which continues to maintain an extremely low direct vacancy rate of less than 3.0 percent - virtually unchanged for the last four years. The next large blocks of space in the building will open up after midyear 2010, with Deloitte s relocation to Met 2 freeing up their 32,000 square feet. At the end of December 2010, Bilzin Sumberg will vacate four floors totaling 90,000 square feet, and will relocate to the 1450 Brickell asset currently under construction in the Brickell submarket of the CBD. These numbers incorporate size changes due to a recent re-measurement of the building. Key market indicators Stock Overall net absorption Overall vacancy rate Average asking rent Under construction Change from previous quarter 6,318,985 SF -90,092 SF 15.8% $34.07 PSF 700,000 SF

18 Jones Lang LaSalle On Point Miami Office Report Q Downtown At the start of 2010, with the departure of its anchor namesake look to newly named Bank of America Tower. Known for two decades by the bank s namesake, the building will now be renamed Miami Tower. Occupancy at the Class A asset was relatively unchanged and stood at 91.0 percent. However, Miami Tower will be placing up to 75,000 square feet of contiguous space on the market, most of which was the bank space. As one of Miami s most photographed buildings, the anchor tenant offering comes with building signage. With the dissolution and court-appointed receivership of local law firm Rothstein Rosenfeldt Adler, last quarter s 7,300 square foot signing of their first Miami office has gone back directly to the landlord. In early 2008, a large sublet became available at what will now be known as Miami Tower 21,500 square feet on the 34th and 35th floors. This was law firm space for Buchanan Ingersoll PC which was also raided by a new to market rival law firm with term until With a portion of the space leased during fourth quarter, 16,000 square feet remain available, with an asking rate of $30.00 to $35.00 per square foot, full service. SunTrust International, One Biscayne Tower, and Museum Tower are three highly recognizable figures on the Miami skyline that do not make the cut for the competitive Class A set. Consequently, these buildings compete as Class A Tier II product. The quoted combined direct rates at the Tier II buildings fell again this quarter and averaged $34.27 per square foot, down from the year-end 2008 average of $35.80 per square foot. The fall in rates comes along with the combined increase in vacancy for this Tier II set. These assets comprise 1.3 million square feet and are options for more price sensitive users. Both direct and overall vacancy rates have been in the double digits for the last 1.5 years. Average rental rates (Class A vs. Class B) $ psf sf in thousands $45 $40 Class A rental rates Class B rental rates $35 $30 $25 $20 $15 $10 $5 $ Overall new deliveries / overall net absorption / overall vacancy rates New deliveries YTD Net absorption YTD Vacancy Class A YTD Vacancy Class B YTD 25% 20% 15% 10% 5% 0%

19 Jones Lang LaSalle On Point Miami Office Report Q Downtown New supply in the form of sublease space now marks the largest contiguous vacancy among the Tier II buildings. With term through 2014, nearly 27,000 square feet on the 9th and 10th floors of the SunTrust building is available for sublease. This space is the offices of CPA firm Marcum Rachlin, formerly Rachlin Cohen & Holtz. The second largest contiguous availability remains at One Biscayne Tower with the 25,000 square foot departure of a GSA lease to the Federal Probation Office in late Among competitive Class B product, the largest contiguous office space being marketed remained at New World Tower, where three floors can be put together for 31,500 square feet. Average quoted rates at the building were down slightly to an average of $26.73 per square foot, full service. Vacancy has remained at over one-third of the building. Metropolitan Miami MDM Development s proposed mixed-use city center, will be located just south of the existing Class A Tier I set of competitive office towers. Phase II (Met 2) includes a now under construction 700,000 square foot, 47-story trophy office tower. Completion is scheduled by midyear This office project has institutional backing with MetLife joining ownership. Marriott has committed to operate a 42-story, 376-room hotel which will be a Marriott Marquis. Tenant amenities were further increased with the opening of Manny s Steakhouse located in the adjacent Met 1 building. Additional restaurant amenities will include DB Bistro Moderne, the first location outside of Manhattan for Chef Daniel Boulud. A year-end 2008 announcement indicated the project secured a $250 million construction loan the largest loan of its kind during the year in South Florida, according to the Daily Business Review. In early 2008, Met 2 announced the pre-leasing of its first substantial anchor office tenant one of the region s largest office users and largest law firms, Greenberg Traurig. Greenberg is an existing CBD tenant with its long time offices located at 1221 Brickell. According to the announced transaction in the Daily Business Review, Greenberg committed to 150,000 square feet for 15 years. At year-end 2008, another user was identified at Met 2: Business Centers International, who will lease 24,000 square feet on the building s 19th floor for a 10-year term. The firm provides workspace, staffing and conference rooms. By first quarter 2009, the project announced its third pre-leased tenant: Deloitte for a 50,000 square foot, 12-year commitment. Deloitte will relocate from Wachovia Financial Center. Totally renovated and completed during midyear 2009, additional new office space has come on line with the redevelopment of the five-story Omni Center office building at 15th Street and Biscayne Boulevard. The project s first tenant was a GSA user (Passport Agency), leasing 33,000 square feet. The redevelopment added 276,000 square feet of available office space above the existing Miami International School of Art and Design and an additional 16,000 square feet on the ground floor. As of fourth quarter, another significant GSA lease (27,000 square feet) was signed for the U.S. State Department s Diplomatic Security Bureau. The largest contiguous office space now comprises 225,000 square feet located on floors three through five, with an asking rate of $32.00 per square foot (net of electric), which was unchanged during Across the street from the Omni is the long-time landmark building for the city s prime newspaper, the Miami Herald. While the area surrounding the building is marked for redevelopment, the news organization s recent consolidation had resulted in a 50,000 square foot office lease opportunity which was leased during first quarter 2009 to a post-secondary school currently located at the Omni Center. An additional 28,500 square feet remains available for lease with a full service asking rental rate range of $33.00 to $35.00 per square foot.

20 Jones Lang LaSalle On Point Miami Office Report Q Downtown Demand Miami Tower renewed long time tenant, American Arbitration Association for 5,500 square feet. The firm took a portion of the Buchanan Ingersoll sublease space. Leasing at Miami Center included Cohen & Fox, P.A. renewing their 11,000 square foot office and Harper Meyer et al committing to the 9,600 square foot sublease space of former law firm Kluger Peretz, which dissolved earlier in the year. Harper, an international corporate and transactional law firm, moved from another CBD trophy asset 701 Brickell. On the Tier II front, One Biscayne Tower renewed nearly 24,000 square feet for long-time tenant Gunster, Yoakley & Stewart, P.A. The full service law firm has offices throughout the state and also signed an early, long term renewal at its West Palm Beach office. Renewals comprised SunTrust s year-end leasing activity which totaled 13,000 square feet. The largest, nearly 5,700 square feet, was Bank of America. Transactional activity on the Class B front included two tenants at the Chase Bank Building for just under 9,000 square feet. A 5,000 square foot renewal was signed by FIU Metropolitan Center and Biscayne Housing Group signed a new lease for nearly 3,700 square feet. The Chase building is located at 150 S.E. 2nd Avenue. The largest new requirement to hit the market at year-end was the 50,000 square foot search on behalf of Banco Sabadell, who is acquiring the Mellon United division of BNY Mellon, and a 40,000 square foot search for H.I.G. Capital. Additional new searches this quarter included law firm Berger Singerman for 20,000 square feet, noted engineering and architectural firm, Zyscovich Architects, with a 15,000 square foot requirement and Porsche Latin America has a search for 5,600 square feet. All are existing CBD tenants. VITAS Hospice Services signed a short term, one-year renewal for their 80,000 square foot offices at the Class B One Bayfront Plaza. VITAS remains in the market with a downsized 50,000 square foot search. Additional large requirements also include JPMorgan Chase for 50,000 square feet and Wells Fargo (formerly Wachovia Securities) for up to approximately 30,000 square feet. Downtown law firm McDermott Will & Emory et al is seeking up to 23,000 square feet while Jones Walker has a 10,000 square foot search. Other notable requirements include New Times magazine s requirement for up to 10,000 square feet and Verizon for 15,000 square feet. The largest requirement remains for noted law firm, Hunton & Williams LLP, for up to 70,000 square feet. In addition, there is a 30,000 square foot GSA requirement and a 15,000 square foot CBD requirement for Onboard Media, owned by the world s largest luxurygoods retailer, LVMH. Pricing The most significant pricing change was implemented late last year at the trophy Wachovia Financial Center, where rates continue to be quoted on a triple net basis. Asking rents begin at $25.50 per square foot and extend up to $32.50 per square foot, triple net with a 2009 operating expense of $ By next year, operating expenses are expected to be reduced to $ The highly finished Bilzin Sumberg space (floors 23 through 26) has quotes of $31.50 through $32.50 per square foot, triple net. The most recent full floor sublet is being offered at a below-market, full service rate of $34.00 per square foot. Miami Center s direct quoted rates for its prime spaces on the top floors remained unchanged this year as reported in CoStar at $47.50 per square foot, net of electric for its prime spaces. This translates to a full service rate of approximately $49.00 per square foot. Pricing for lower floors ranges from $40.00 to $45.00 per square foot, also net of electric. Reflecting the state of the market and aggressive intentions by tenants shedding unwanted space, sublets are providing some excellent bargains. Most notably at Miami Center: Zuckerman Spaeder s nearly 14,000 square foot sublease has been reduced again this quarter to the current $26.00 per square foot, net of electric. This is a substantial drop from the initial asking rate of $39.00 per square foot and a considerable difference from the building s direct quotes which exceed $40.00 per square foot.

21 Jones Lang LaSalle On Point Miami Office Report Q Downtown While Miami Tower had held its asking rates for most of 2009, asking rates were reduced last quarter from $38.00 to $45.00 per square foot to $34.00 to $39.00 per square foot, full service. There is a significant price differential between the Tier I and Tier II building sets. The highest quoted pricing among the competitive Tier I set is $49.80 compared to the highest Tier II quote of $39.00 per square foot. Look to bargain pricing for the largest availability among the competitive Tier II set of buildings the near 27,000 square foot sublet with a mid-$20.00 per square foot, full service asking rate. The Class A Tier II One Biscayne project is asking $34.00 to $39.00 per square foot for its largest contiguous space 25,000 square feet on the 25th floor. Asking rents at SunTrust International Center were lowered substantially during midyear 2009 from $35.00 to $37.00 to the current $32.00 to $35.00 per square foot, full service. Going forward, the new pricing structure will be reduced to $30.00 to $33.00 per square foot. The largest contiguous direct space is 24,000 square feet. The ninth floor, near 11,000 square foot sublet offering has a below market quote in the mid-$20.00 per square foot, full service range. Museum Tower s vacancy was up to 16.4 percent and was still marketing 14,000 square feet as its largest contiguous space. The asking rate is $35.00 per square foot, one of the building s highest quotes. For most of this decade, vacancy at this asset has been in the single digits. Trends Coinciding with tenant retention efforts, Class A and Class B landlords are implementing capital improvements necessary to compete effectively. This is occurring in both Downtown and Brickell, with improvements that range from building upgrades and added complimentary amenities to full pursuit of high level LEED certification. The CBD s premier and largest asset, Wachovia Financial Center, has $8.3 million of improvements underway including outdoor plaza upgrades to entice retailers while also applying for gold LEED certification. Completion is expected by midyear Wachovia Bank was purchased last year by Wells Fargo, making Wells the fourth largest bank in the nation in terms of assets and branch network (Miami Today). Boding well for the local area, the bank now claims the top market share both here and throughout the state in addition to relocating new decision-makers to Miami. Additional positive banking news included JP Morgan Chase s increased hiring announcement by 60.0 percent of its sales force, with Florida included in this expansion effort. Wachovia Financial Center, located in the heart of Downtown Miami, is one of the premier towers in the country and is owned by institutional investors advised by JP Morgan Asset Management Global Real Estate Assets. Wachovia is also one of the largest CBD office tenants. Class B rates have correspondingly declined by as much as 9.0 percent over the 12-month period, averaging $23.15 per square foot. Vacancy for Downtown s Class B sector reached 19.6 percent at yearend, up 2.3 percentage points from the previous year. Year-to-date negative absorption was almost triple that recorded for its Brickell counterpart. Look to an increase in larger contiguous blocks of office space being marketed in Following the expirations, the time period of 2013 and 2015 is expected to contain the next big wave of lease rollovers. However with the current plethora of early lease renewal activity, this pool is expected to be reduced significantly.

22 Jones Lang LaSalle On Point Miami Office Report Q Downtown As with the rest of the market, free rent remains readily available and, on average, has increased during 2009 from an initial three months to ending the year with up to six months (depending on size, credit and length of term). While Class A landlords hope to have reached a bottom threshold for rental rate reductions, expect continued pressure on the concession front. In a desire to secure economically feasible rental rates during the current downward slide, the trend continues for some very early renewals, including some up to three year s prior to lease expiration. The average asking rate at the under-construction Met 2 continues to be quoted at a range of $43.00 to $50.00 per square foot, full service. However, pre-leasing deals were struck at rates below $40.00 per square foot and loaded with abatement and tenant improvement concessions. Expect much of the same for any future large pre-leasing commitments at all of the under construction product in the CBD. As part of the overall Met development, the Met 3 segment was slated to house a 47,000 square foot Whole Foods Market, an upscale, healthoriented grocer which was scheduled to open by Spring Reflecting a sign of the times, the grocer announced at year-end 2008 that it was pulling out of the deal. A proposed 74-story residential tower with 650 units, also slated for Met 3, was put on hold (South Florida Business Journal). One of the largest private/public initiatives in the entire region is located approximately one mile north of Downtown at a former rail yard. The overall estimated $2.0 billion project, known as Midtown Miami, is an ambitious mixed-use development that covers 56 acres in several phases. The now opened Phase I of the 645,000 square feet of retail space includes such national retailers as Target (who opened in 2006), OfficeMax and PETsMART. As part of a nationwide liquidation, Linens 'n Things and Circuit City ceased operations in the first quarter of The 180,000 square foot Phase II segment of the project includes national retail anchors such as FedEx Kinko, Famous Footwear and Payless Shoes. Significant lease transactions GSA Omni Offices Gunster, Yoakley & Stewart One Biscayne Tower Cohen & Fox, P.A. Miami Center Harper Myer Miami Center Bank of America SunTrust International Large contiguous availabilities Omni Offices Miami Center Bank of International Place New World Tower SunTrust International One Biscayne Tower Wachovia Financial Center 27,000 SF 24,000 SF 11,000 SF 9,600 SF 5,700 SF Class B 225,000 SF Class A 94,000 SF Class A 75,000 SF Class B 31,500 SF Class A 27,000 SF Class A 25,000 SF Class A 25,000 SF

23 Jones Lang LaSalle On Point Miami Office Report Q Downtown Midtown Miami s housing component s two condo buildings reported occupancy at 90.0 and 76.0 percent for its lofts and townhomes, as of third quarter (Miami Today). Despite the downward impact on the project s retail and residential product, this area has become a popular eating destination with the opening and additional proposals for several gourmet restaurants. Midtown s office component includes two large blocks at 24,000 and 34,000 square feet, respectively, with full service pricing at $28.00 per square foot - down by $2.00 per square foot from midyear. Asking term ranges from five to 10 years. These are loft style office suites which offer bay views. Construction was completed at year-end 2008 for the residential towers and 400+ room hotel opened at the Dupont Plaza site (an outdated hotel/office development that was demolished). Located at the mouth of the Miami River, the location is just blocks south of Downtown s three competitive Class A office towers. Known as Epic Residences & Hotel, the project includes residential condominium units, hotel rooms and nearly 10,000 square feet of restaurant and retail space. The structure was developed in part by CMC Group, who has two of the most photographed, prized condominium towers along the southern end of Brickell Avenue. The entire CBD has dramatically changed with a nearly unrecognizable skyline. The physical and demographic change remains underway around the Downtown area, which stretches north to the Omni and south to Brickell. On the public front, the city hired architectural and urban design firms from New York and Switzerland to develop a new master plan for the 29-acre waterfront Bicentennial Park which will be known as Museum Park. It will include two museums for art and science as well as an open 22-acre park plaza green space area. Museum Park is situated just north of Downtown s three Class A office towers. As of this writing, financing and other approvals still remain in progress. The city s $461 million Performing Arts Center opened in 2006 and has contributed to the area s surrounding redevelopment. The project is located on the Biscayne Corridor in between Miami s Class A office buildings and the newly-developed Omni area. Another ripe target for redevelopment is the famed Omni Center, located at the northern end of Downtown at the entrance to Miami Beach. The near 1.0 million square foot mixed-use complex includes hotel, office and commercial space that was previously occupied as a retail mall. The retail portion has been gutted and redeveloped into office space and the hotel has completed a $26 million renovation with the facility converting to a Hilton. In addition, 300,000 square feet of vertical box retail and restaurants are proposed to be incorporated into the development. The immediate surrounding area has experienced a significant revitalization, largely as high-end residential condominium and apartment development. The entire 11.2-acre complex was purchased in April 2005 from Lehman Brothers for $100 million by Argent Ventures of New York. Across the street from the Omni development are 10 acres adjacent to The McClatchy Company s 600,000 square foot news facility which still remains under contract to an investor group. The existing structure is the long-time landmark building for the city s prime newspaper, The Miami Herald. With a $190 million price tag, the 10 acres represent a prized parcel comprised of four largely non-waterfront parking lots and the Boulevard Shops which went to market in late 2004 and sit at the entrance to both the Beaches and Greater Miami. At year-end 2009, a second extension was granted for financing and the potential ultimate buyer and developer, Mark Siffin of Maefield Development, has relinquished his right of first refusal for the news organization s building and land which was not part of the offering but occupies the prime waterfront position along Biscayne Bay. A master plan by the pending buyer is to include a 640,000 square foot vertical retail mall ( City Square ) and 4,000 parking spaces. Two condominium towers had also been part of the proposed project, as reported by the news organization..

24 Jones Lang LaSalle On Point Miami Office Report Q Downtown Both the Omni and Herald sites anchor the northern end of Downtown and sit at the entrance to the city as well as Miami Beach via the Venetian Causeway, voted one of the most beautiful by-ways in America. As noted by the Miami Herald, the combined sites are unique among major U.S. metropolitan areas in that over 21 acres including water frontage are now available for redevelopment. Bayside Marketplace, situated just north of the competitive office market, was taken off the market during third quarter. One of Miami s and Downtown s landmark tourist and waterfront retail destination and entertainment venues, it was put up for sale in early The project sits across the street from many of the newly constructed and largely empty high rise condos and is part of General Growth s portfolio. A few blocks to the south, Everglades on the Bay, a relatively new mixed-use residential condo development, announced a filing for Chapter 11 bankruptcy during midyear 2009.

25 Jones Lang LaSalle On Point Miami Office Report Q Miami Suburban Coconut Grove Coral Gables Miami Airport

26 Miami Suburban boundaries Jones Lang LaSalle On Point Miami Office Report Q

27 Jones Lang LaSalle On Point Miami Office Report Q Miami Suburban boundaries Aventura / North Miami North by 135th Street, east by Biscayne Bay, south by I-395, west by I-95. Coconut Grove North by Dixie Highway, east and south by Biscayne Bay, west by Douglas Road. Coral Gables North by Tamiami Trail (SW 8th Street), east by Douglas Road, south by Bird Road, west by Ludlum Road (SW 67th Avenue). Kendall / Dadeland North by Kendall Drive (SW 88th Street), east and south by Old Cutler Road, west by Florida s Turnpike. Miami Airport North by NW 58th Street, east by LeJeune Road, south by West Flagler Street, west by Florida s Turnpike. Miami Beach (South Beach) North by Lincoln Road, east by the Atlantic Ocean, south by 5th Street, west by Biscayne Bay. Miami Lakes North by NW 58th Street, west by LeJeune Road, south by West Flagler Street, west by Florida s Turnpike.

28 Jones Lang LaSalle On Point Miami Office Report Q Coconut Grove Supply With the condo conversion and removal for purposes of this report of two out the three Class A office buildings - Grand Bay Office Tower in 2005 and SBS Tower in 2006 the inventory of quality office space was drastically reduced to only one 57,000 square foot institutional asset, Bayview Executive Plaza, which had been fully leased since midyear Submarket boundaries map The current trend, however, of diminishing demand for Class A office ownership has dramatically changed this equation resulting in numerous for lease availabilities now being marketed by both of the condo conversions. Consequently, both Grand Bay and SBS Tower have been added back into the statistical inventory as of midyear 2009 which accounts for the steep rise in market size and accompanying doubledigit vacancies and negative absorption trends. The profile of Class A competitive product now includes the following vacancies being marketed for lease: 81,000 square feet at SBS Tower 42,000 square feet at Grand Bay 8,500 square feet at Bayview Executive Plaza SBS Tower is offering vacancies ranging from 1,000 to 29,000 square feet direct from the building s namesake and office condo owner, SBS. The largest sublease space being marketed is on the fourth floor with 17,000 square feet available. No sublease space is being marketed at Grand Bay. Key market indicators Stock Overall net absorption Overall vacancy rate Average asking rent Under construction 1,011,964 SF -15,048SF 22.6% $31.77 PSF SF Change from previous quarter

29 Jones Lang LaSalle On Point Miami Office Report Q Coconut Grove Fully leased for most of the year, Bayview Executive Plaza s vacancy spiked to nearly 15.0 percent at year-end. The largest new vacancy (just under 5,000 square feet) was the result of the recent dissolution of Lewis B. Freeman & Partners. According to the South Florida Business Journal, this was one of South Florida s best-known accountants and court-appointed receivers who were forced to hand over the company to another receiver amid reports of being under federal investigation. Additional supply includes the entire 11,500 square foot, fourth floor which is being marketed for a first quarter 2010 availability. The inventory for Class B product was also reduced at midyear 2009 with the elimination of 240 Crandon Boulevard due to its noncompetitive location and pricing. Comprising just less than 50,000 square feet, this project is situated outside of the urban Grove core on the exclusive island of Key Biscayne, with pricing that can reach as high as $52.00 per square foot. Average rental rates (Class A vs. Class B) $ psf $45 $40 Class A rental rates Class B rental rates $35 $30 $25 $20 $15 $10 $5 $ Overall new deliveries / overall net absorption / overall vacancy rates Double digit vacancies plagued both the Class A and Class B sectors for the year, with the three Class A towers posting a combined overall rate of 25.5 percent at the end of the fourth quarter. While this range has held for the last few quarters, this was one of the highest rates posted since mid Class B vacancy has been intermittently single and double digit over the last four years. The 267,000 square foot Mayfair in the Grove is a predominantly retail development but has been repositioned for more office use. Vacant office space comprises nearly 64,000 square feet, including one parcel west of the Promenade. The contiguous spaces that can be put together are 20,894 square feet in the North Building (three floors), 21,853 square feet in the Atrium and another 17,000 square feet on the west side of the Atrium. Due to the design of the project, expect future leasing activity to be relegated to large users seeking custom designed office space. sf in thousands New deliveries YTD Net absorption YTD Vacancy Class A YTD Vacancy Class B YTD % 25% 20% 15% 10% 5% 0% Unchanged from last quarter, Continental Plaza s largest contiguous vacancy was nearly 4,900 square feet on the fourth floor with the 80,500 square foot Class B building marketing 39.0 percent of its space as available all of which was direct from the landlord.

30 Jones Lang LaSalle On Point Miami Office Report Q Coconut Grove Demand Bayview Executive Plaza renewed law firm Ratiner, Lagos & Mirabal, P.A. in a 4,000 square foot transaction. A substantial 17,000 square foot sublease was signed this quarter at SBS Tower. The firm, Trax USA, committed to the building s fifth floor. In addition, the building welcomed a new user civil litigators, Mase, Lara, Eversole, P.A in an 8,000 square foot transaction. Two third floor tenants expanded at the Class B Grove Forest Plaza. Willner & Willner, Inc. increased their space by nearly 3,500 square feet and now occupy over 5,100 square feet while Alpha One Foundation expanded by 1,000 square feet, increasing their space to a total of 2,800 square feet. The building posted a near 38.0 percent vacancy rate at the end of the quarter. New requirements in the market include a 20,000 square foot search for Florida-based law firm, Wicker Smith. In addition, national trial law firm Weinberg Wheeler et al has a 9,000 square foot requirement. Pricing Pricing at Bayview Executive Plaza now ranges from $30.00 to $32.00 per square foot, net of electric. Significant lease transactions Trax USA SBS Tower Mase, Lara, Eversole, P.A. SBS Tower Ratner, Lagos & Mirabel, P.A. Bayview Executive Plaza Willner & Willner Inc. Grove Forest Plaza Large contiguous availabilities Mayfair in the Grove SBS Tower 17,000 SF 8,000 SF 4,000 SF 3,500 SF Class B 43,000 SF Class A 29,000 SF Pricing at Grand Bay has been reduced from the $32.00 to $42.00 per square foot range to the current quotes of $32.00 to $37.00 per square foot. Sublease pricing at SBS Tower for the 9,600 square foot office was $39.00 per square foot, full service this is higher pricing considering the suite is located on the 20th floor and offers bay views along with private restroom facilities. Even more aggressive pricing is being offered on the largest contiguous sublet on the fourth floor at $33.00 per square foot.

31 Jones Lang LaSalle On Point Miami Office Report Q Coconut Grove Rental rates at the Class B Mayfair in the Grove were mostly unchanged from last quarter, standing at a net of electric quote of $30.00 per square foot. The quote is down substantially from 12 months ago, when pricing stood at $35.00 per square foot, full service. At nearly 39.0 percent vacant, average overall pricing has been reduced substantially over the last year at the Class B Continental Plaza from $32.38 per square foot to the current range of $25.75 to $29.00 per square foot. Trends Pricing declines for both Class A and B product were fairly pronounced by year-end, with the Class A sector dropping by over 7.0 percent and nearly 21.0 percent for the Class B buildings. With the tenant mix in Coconut Grove made up primarily of local, small users, watch for more sublease and direct vacancies coming to market as struggling tenants attempt to navigate through this difficult down cycle in the economy. New zoning changes in the Grove now permits street level offices in areas where retail was the only permitted use, allowing Mayfair in the Grove to target potential office users for their vacant and former street level retail space. Anchoring the Grove is the near 200,000 square foot retail/entertainment center, CocoWalk. The complex is undergoing another renovation and repositioning due to increased competition from entertainment venues such as the Design District, Mary Brickell Village, South Beach and South Miami. The Cheesecake Factory is one of its original and most popular tenants. Café Tu Tu Tango closed its doors in The space however was quickly leased to Crazy Pianos, a piano bar/restaurant concept which opened during first quarter 2009 and expanded the space to 7,000 square feet to debut its first U.S. location. Crazy Pianos boasts the number one piano bar in sales worldwide. Also at CocoWalk, Muvico, one of the nation s growing chains of premium megaplex motion picture theaters, will replace AMC in a long term lease and open by early The theater includes VIP seating with full restaurant and bar service. Last year, national chain restaurant Chili s joined the open-air mall in a 5,600 square foot location on the third floor. Year-end, however, brought a foreclosure suit against the open-air mall by Bank of America, as reported in the Daily Business Review. The owner, PMAT CocoWalk, is negotiating with the lender to restructure the debt. A foreclosure lawsuit was also filed against the owner of the Coconut Grove Hotel. The 177-room lodging facility is adjacent to the Grand Bay Office Tower and formerly operated under the Wyndham Grand Bay Hotel banner. According to the South Florida Business Journal, this had been a five-star hotel. Situated in between SBS and Grand Bay office towers, the recently traded, renovated and repositioned Doubletree Hotel reopened as a Courtyard by Marriott. Following the current economic trend, the 196- room facility will appeal to more value-seeking travelers as the hotel will operate in line with its limited service, affordable chain. Both public and private efforts continue to revitalize and reposition this market. Such efforts include beautification of retail store fronts, more parking, housing and destination-drawing amenities. The Grove s waterfront area is slated for improvements to include pedestrian friendly access via a boardwalk and improved parking and new garage. This is a long-term planned project in the design and funding state. The Western portion of the submarket is also slated for a potential repositioning. Developer Peter Gardner intends to redevelop six city blocks along Grand Avenue with retail, office (up to 500,000 square feet), hotel and residential product. As reported in the Daily Business Review, this is a longer-term proposition as the land is still being purchased. The most recent press indicated that the project is awaiting the major use special permit for what will be known as the Grove Village development.

32 Jones Lang LaSalle On Point Miami Office Report Q Coral Gables Supply The seven elite Class A buildings in the Coral Gables submarket 355 Alhambra, The Alhambra (Two Alhambra Plaza), Columbus Center (One Alhambra Plaza), BAC-Colonnade, Alhambra Towers (121 Alhambra), 4000 Ponce and 2525 Ponce are so designated because they contain at least 170,000 of square feet of rentable building area with full-service rental rate quotes for prime spaces which previously fell in the mid-$40.00 per square foot range but now collectively average $38.40 per square foot. Five of the seven buildings, however, are still maintaining average quotes above $40.00 per square foot. Submarket boundaries map These properties are perceived as alternatives to high-rise properties in neighboring submarkets including Brickell Avenue, Coconut Grove, and Downtown Miami. The newly completed Bacardi Headquarter s building this year is not included among the competitive multi-tenant statistical inventory as it was a build-to-suit project. However, the available ground floor space is also being marketed for retail use. Among the competitive trophy set of buildings, 2008 marked the beginning of double digit vacancies which were not seen during 2006 or The great majority of vacancy is direct from the landlord. However, significant gains are seen in the amount of sublease space being marketed exceeding 100,000 square feet this quarter compared to 2006 when no sublease space was available. Five of the seven assets are now posting double digit overall vacancies (which includes sublease space) and averaged a collective 21.3 percent at year-end. During third quarter, Columbus Center began marketing three full floors (six through eight) comprising 60,000 square feet at the 1 Alhambra Plaza component of the project the largest contiguous block of Class A space in Coral Gables. With frontage along the prestigious Alhambra corridor, the availability comes with signage opportunity. In addition, a 19,000 square foot contiguous block remains available on the 10th floor of the main building. Key market indicators Stock Overall net absorption Overall vacancy rate Average asking rent Under construction Change from previous quarter 4,952,988 SF -95,551 SF 19.9% $34.87 PSF -0- SF

33 Jones Lang LaSalle On Point Miami Office Report Q Coral Gables Direct vacancy at Two Alhambra (The Alhambra) was unchanged from last quarter at 31.0 percent. The seventh floor remained as the largest contiguous office space at 13,400 square feet. As for the Class B Alhambra West (95 Merrick) building, one small direct space (2,800 square feet) and two sublets remain - the largest of which is 9,000 square feet from Yahoo! with term through first quarter While 95 Merrick continues to post a 92.0 percent occupancy rate, look to increased vacancy by first quarter 2010 when a second floor, near 9,200 square foot office becomes available. Good renewal and new leasing activity at the end of the year mitigated a significant portion of vacancy at 255 Alhambra that occurred as a result of the failure of BankUnited, which left approximately 52,000 square feet of Class A space. On a direct basis, the largest contiguous office is the 12th floor (comprising 17,500 square feet). On the sublet front, however, look to increased space being marketed next quarter with Stiefel Laboratories vacating another 17,000 square feet. Having been bought out by GSK, the firm will close its headquarters at the building and relocate to North Carolina. Direct vacancy at the 207,000 square foot BAC-Colonnade remained unchanged at 14.0 percent. Of this, 11,000 square feet on the sixth floor was the largest contiguous space. No leasing activity was announced for the year-end quarter. Only one small (2,400 square feet) direct space remains at the Class A 4000 Ponce building. Pricing is $40.00 per square foot, full service. On the sublet front, approximately half of the sixth floor (15,000 square feet) remains available. This is highly-finished Banco International de Costa Rica space and with term through 2012, the asking rate is $36.00 per square foot. Average rental rates (Class A vs. Class B) $ psf sf in thousands $45 $40 Class A rental rates Class B rental rates $35 $30 $25 $20 $15 $10 $5 $ Overall new deliveries / overall net absorption / overall vacancy rates New deliveries YTD Net absorption YTD Vacancy Class A YTD Vacancy Class B YTD % % % % % %

34 Jones Lang LaSalle On Point Miami Office Report Q Coral Gables The trophy 121 Alhambra tower has been virtually fully leased on a direct basis over the last three years. This quarter s near 24.0 percent availability rate, however, is attributable to a substantial sublease offering Bank of Miami space comprising nearly 47,000 square feet of office space spread out on four floors. The largest contiguous office is located on the 17th floor at just under 22,000 square feet. On the ground floor, 4,800 square feet of teller and branch space is being marketed. Term is through At Douglas Entrance, its largest contiguous space is still the two top floors totaling 25,000 square feet in the Class A South Tower. All combined, the five-buildings posted a 25.0 percent vacancy up significantly from 12 months ago when the rate was less than 10.0 percent. The development comprises both Class A and Class B space. As of third quarter, Douglas Entrance was awarded a LEED O&M Silver Certification, the first to receive such in the state in the existing building category. Look to additional supply with the year-end 2010 departure of Phelps Dodge to suburban Doral in the Miami Airport sector. The relocation will leave nearly 13,000 square feet on the eighth floor at the Class A South Tower. Maintaining single digit vacancies for the last 2.5 years, vacancy at the small Class A 550 Biltmore jumped from 8.7 percent to the current 13.3 percent with several, relatively small offices being marketed. The largest space remains at 8,300 square feet on the seventh floor. All spaces have a $42.00 per square foot asking rate. With vacancy reaching 13.2 percent at year-end, the Class A 355 Alhambra was still marketing an 11,000 square foot office as its largest contiguous space. A full floor (eighth, 18,500 square feet) was still being marketed at the Class B 999 Ponce building. With the lobby area under renovation, the asset is known as Gables Cititower and continued to post 40.0 percent of its space as available. Asking rents have been reduced to $28.00 per square foot, full service, unchanged from third quarter. Another full floor opened up this quarter the 13,000 square foot Penthouse at the Class B 2121 Ponce development. This was the result of Cornerstone vacating its premises. While the space is being marketed at $34.00 per square foot, a lease was pending at year-end. On the redevelopment front, look to a new and expanded 396 Alhambra project by its new owner, the Jose Cuervo tequila empire. During fourth quarter, the project attained its Gold-level LEED pre-certification. In combination with the existing 100,000 square foot former Exxon building and parking garage, both new construction and upgraded renovation will result in a 285,000 square foot Class A development. With permits in hand, the development is self-financed. Rehab construction on the existing building is expected to be completed by first quarter 2010, which is also when the new building is slated to begin construction. The new parking garage will be completed by midyear Completion for the entire project is now scheduled for third quarter While Citibank will still have a 4,000 square foot branch presence, the balance of the entire project is available for lease. Expect high-end upgrades on the existing structure with forecasted pricing in the middle to high $30.00 per square foot range, full service. Rates for the new structure, which will have 8,000 to 14,000 square foot floor plates, will be marketed at $42.00 to $50.00 per square foot, also full service. No pre-leasing has been announced. Approval has been granted on what will be the city of Coral Gables largest project and its first L.E.E.D. certified Green office building: Ponce de Leon Towers in Old Spanish Village, a seven acre mixed-use development which will include office product. The luxury, 15-story 203,000 square foot office tower will have floor plates averaging 24,500 square feet on floors eight through 14. A retail bank branch will office on the ground floor with drive-through lanes. In addition, unique amenities such as some private garage parking and balconies will be offered. The office building will be situated across from a park and open amphitheatre. It will tower over the low-rise mixed-use development offering tenants unobstructed views in a three-tower design inspired by the 15th century Cathedral of Barcelona in Spain.

35 Jones Lang LaSalle On Point Miami Office Report Q Coral Gables Construction of the Ponce de Leon Towers office building is scheduled to begin in late 2010 with completion scheduled by midyear The first pre-leased tenant, who will occupy an entire 24,400 square foot floor, has been announced: an executive suites business center, a subsidiary of the Rockefeller Group. Leasing activity at Douglas Entrance included the near 13,000 square foot renewal for well-known marketing and communications agency, Accentmarketing, Inc. in the La Puerta Del Sol building. In addition, Giltec renewed and expanded for a total of 5,200 square feet in the North Tower. Local developer, Codina Group, now part of Flagler Development, in a joint venture with JPMorgan completed the new 251,000 square foot Bacardi headquarters during midyear Since completed, the project s ownership changed hands to Amancio Ortega, a Spanish apparel entrepreneur and one of the world s richest men. The entire 317,000 square foot project is located at the site of an old City National Bank building. The first floor is being marketed for either office or retail with an asking rate that roughly translates to $50.00 per square foot on a full service basis. The development also includes a new bank facility for City National and Flagler s offices and a second level parking garage. This is owned by both as condominium product. Demand Lagging demand for both Class A and Class B space was evidenced by Coral Gables accounting for the highest negative absorption among all of Miami s submarkets and nearly 30.0 percent of the total for the year. The Class A 2525 Ponce building has been fully leased on a direct basis for the last two years. However, a 10th floor 3,800 square foot office became available during midyear. The adjacent Class B 2555 Ponce building, which is fully leased, renewed the Early Learning Coalition for an impressive 16,000 square feet and expanded IVC Television by nearly 3,600 square feet. Ecuador s first multi-service bank, Bank of Guayaquil, leased 1,800 square feet on the Penthouse level of the Class A 121 Alhambra building. 355 Alhambra renewed Redbridge Networks, a reinsurance facilities management firm for 8,400 square feet, marking a near doubling of its original headquarters space. 255 Alhambra recorded several substantial transactions at year-end: a near-19,000 square foot new lease for Mercantile Bank on the building s first two floors and a 17,500 square foot new Penthouse lease signed by well known litigators, Colson Hicks Eidson. Mercantile will relocate from 2222 Ponce. In addition, the building welcomed Navarro Carmona who subleased 3,600 square feet. Opened in late 2008, Merrick View is a 78,500 square foot office condo with the majority of its space available for lease. The largest contiguous office is the entire fifth floor comprising 20,000 square feet with an asking rate of approximately $35.00 per square foot, full service. Available office condo prices have an approximate average of $330 per square foot. Two leases were signed this quarter: 6,000 square feet for Prudential Real Estate Services and 3,000 square feet for BBC. Now posting single digit vacancies, the Class B 901 Ponce building signed several leases this quarter which included a 5,400 square foot expansion for long-time tenant, American Airlines. American now occupies in excess of 20,000 square feet. Florida based-engineering and architecture firm Corzo Castella et al, P.A. renewed and downsized to 5,200 square feet while law firm Palahach & Cruanus, P.A. relocated into 4,000 square feet from Gables International Plaza..

36 Jones Lang LaSalle On Point Miami Office Report Q Coral Gables This quarter s new prospects include three separate 20,000 square foot requirements: DDB Miami; Oppenheimer; and Business Centers International. TotalBank is actively searching for 50,000 and another financial institution is searching for 4,000 square feet. Wells Fargo is seeking 14,000 square feet in South Coral Gables. Still in the market is Terrabank for up to 35,000 square feet and Big Brothers, Big Sisters for up to 15,000 square feet. RTKL is searching for 25,000 square feet. Pricing Asking rental rates for top-tiered product continued to show the strain when supply outpaces demand: Two Alhambra, a further reduction in pricing was implemented at year-end: a reduced range from $45.00 to $46.00 per square foot (midyear 2008) to the current quote of $34.00 to $40.00 per square foot BAC-Colonnade, historically maintaining the strongest pricing in the Gables, year-end rates were quoted at $44.00 to $48.00 per square foot Columbus Center, pricing during the previous two quarters stood at $41.00 to $43.00 per square foot; by year-end, this was lowered to $38.00 to $42.00 per square foot 355 Alhambra, reduced by $1.00 per square foot from the beginning of the year to $44.00 per square foot for all of its available space, unchanged from midyear 2009 Stark pricing differences between direct and sublet space are evident at the trophy 121 Alhambra asset. The only direct space has a $45.00 per square foot asking rate, down by $3.00 per square foot from last quarter but substantially above the mid-$30.00 per square foot rate sought for the building s sublease space and largest availability. Significant lease transactions Mercantile Bank 255 Alhambra Colson Hicks Eidson 255 Alhambra Early Learning Coalition 2555 Ponce Accentmarketing Douglas Entrance Redbridge Networks 355 Alhambra Star Clippers Lennar Corporate Center Large contiguous availabilities Columbus Center Douglas Entrance 2800 Ponce 999 Ponce 255 Alhambra 121 Alhambra 19,000 SF 17,500 SF 16,000 SF 12,600 SF 8,400 SF 6,000 SF Class A 60,000 SF Class A 25,000 SF Class A 27,500 SF Class B 18,500 SF Class A 17,500 SF Class A 15,000 SF

37 Jones Lang LaSalle On Point Miami Office Report Q Coral Gables Look to an excellent sublease bargain at the Class A 255 Alhambra when the 17,000 square foot (Stiefel Lab space on the 10th floor) is marketed next quarter for $27.00 per square foot, full service Ponce has a $41.07 per square foot full service Class A rate for its only direct space, unchanged from the last two quarters. Only one sublet remains, comprising 3,800 square feet with a full service asking rate of $39.00 per square foot. At the Bacardi Headquarter s building, pricing remained unchanged at $50.00 per square foot, full service for its first floor space (just under 20,000 square feet) now being marketed for both office and retail use (the triple net quote equates to $35.00 per square foot rental rate with a $15.00 operating expense). Another pricing reduction was implemented at Alhambra West (95 Merrick) to $27.00 to $32.00 per square foot, full service, down from $34.00 to $35.00 per square foot. The 9,000 square foot sublet remains unchanged, quoting $28.00 per square foot, plus utilities, with a two percent broker bonus. Pricing for the planned Ponce de Leon Towers project remained at $34.00 to $43.00 per square foot, triple net with an anticipated operating expense of $16.50 per square foot ranking this among Miami s most expensive rental rate. Reflecting lagging office demand in the midst of growing supply, pricing at Douglas Entrance was reduced from last quarter s $30.00 to $34.00 per square foot to the current full service rental rate range of $29.00 to $30.00 per square foot. Trends No competitive Class A assets are presently under construction nor are there any significant related deliveries expected until the proposed completion date of However, existing Class A landlords continue to feel the pressure of both direct and sublet vacancies hitting the market, as well as new condo product now available for lease. Although new supply had been planned for the Publix grocery store site located off of LeJeune Road just south of Miracle Mile, the project is still proposed as a long term development, pending pre-leasing, with delivery unlikely prior to Plans include a 300,000 square foot, 16-story office building. A parking ratio of 3.5/1,000 will be offered along with 25,000 square foot floor plates. This development is further complicated by the existing lease for a long-standing Publix grocery store that occupies the majority of the site. The sale of the Bacardi headquarters asset at year-end amounted to an approximate $406 per square foot trade. The 251,000 square foot building was acquired by Spanish entrepreneur and founder of the clothing chain Zara, Amancio Ortega (under the entity Ponte Gadea). The substantial sale was pre-arranged via a 2007 contract. The Ponce de Leon Boulevard corridor has some of the city s newest office condominium product Ponce de Leon opened during third quarter with tenants expected to move into the 130,000 square foot office condominium development at Ponce de Leon Boulevard and Minorca by early The most recent press indicated that although 100,000 square feet has been sold, 50,000 square feet of office space is available for lease. The asking rental rate range is $44.00 to $49.00 per square foot, full service.

38 Jones Lang LaSalle On Point Miami Office Report Q Coral Gables What would have been the region s first LEED-certified Green office condominium, located south of the competitive set of buildings near the Village of Merrick Park, had a foreclosure lawsuit filed against it at yearend Opened in December 2008, Miami Green comprises 122,000 square feet of office space with an average asking sale price of $560 per square foot. Although over half of the building s space had contracts, none have closed to date. Consequently, over 54,000 square feet was being marketed for lease a prevalent trend throughout Miami. Lease rates ranged from $26.00 to $33.00 per square foot, triple net. The building s developer, Holly Sime Realty, had purchased 9,800 square feet for its corporate offices. Additional office condominium development surrounding Merrick Park includes Merrick Pointe located at 3850 Bird Road. Built in 2007, the 85,500 square foot project was advertising asking sales prices which averaged $531 per square foot. At year-end, just 34,000 square feet of space was for lease with most of the spaces having quotes of $29.00 per square foot, triple net. Last quarter, the project was hit with a $14.4 million foreclosure suit from Ocean Bank, as reported in the Daily Business Review. In a continuation of tenant upgrades and amenities, the BAC-Colonnade is under-going a three-year $2.0 million renovation. As for upscale retail amenities, a new Norman s restaurant will be opening by early 2010 at the trophy BAC-Colonnade office building. Legendary chef Norman Van Aken is known internationally as the founding father of New World Cuisine and is the only Floridian inducted into the prestigious James Beard list of Who s Who as well as the winner of the prestigious James Beard Award. With various locations throughout the U.S. Eastern Seaboard, Seasons 52, the popular fresh grill and wine bar restaurant, will open a location on Miracle Mile, adding to the Gables diverse range of retail eateries. Seasons 52 is owned by one of the nation s most respected casual dining companies, Darden Restaurants, Inc. (NYSE: DRI) of Orlando, FL. The 200,000 square foot Class B Douglas Centre office building that was converted to condo product is now in foreclosure, as reported by the Daily Business Review. The building was purchased in 2005 for $50 million by RB-Gem for the conversion. Unchanged from the last two quarters, CoStar shows 38,000 square feet being marketed for lease for office and office/medical with asking rates ranging from $23.00 to $25.00 per square foot, triple net. Operating expenses are $8.24 per square foot.

39 Jones Lang LaSalle On Point Miami Office Report Q Miami Airport Supply Seven projects comprise the primary competitive market: Airport Corporate Center, Waterford and Doral Center are the three largest office parks. The balance consists of Doral Corporate Center, Doral Concourse, Doral Costa, and Westside Plaza. Submarket boundaries map Overall vacancy, which includes sublease, nearly topped 21.0 percent at the end of 2009 a rate not seen since early While vacancy was almost evenly divided between the Class A and Class B sectors, most of the space was located in Class A buildings. In excess of 1.0 million square feet, this was the largest amount of vacancy among all submarkets. Phase II of Doral Costa, which contains 130,000 square feet and opened at year-end 2006, had been half empty up until third quarter This lowered the asset s vacancy rate to just under 40.0 percent. The entire third floor (35,000 square feet) remains as its largest contiguous availability. Owned by TA Associates, the project is still offering some of the most aggressive rates and generous concessions with reduced asking prices of $17.00 to $20.00 per square foot, triple net, from the prior asking rate of $23.00 per square foot. Estimated 2009 operating expenses were $9.00 per square foot. Waterford s combined Class A product, all of which is owned exclusively by TIAA-CREF, now totals 1.4 million square feet with the third quarter 2009 delivery of the 1000 Waterford building. At year-end, the park reported substantial leasing with transactional activity totaling 50,000 square feet. The largest contiguous space comprises 100,000 square feet on floors seven through 10 at 1000 Waterford and at the other five buildings, two separate 10,000 square foot spaces (located at the 5201 and 703 Buildings) remain available. Key market indicators Stock Overall net absorption Overall vacancy rate Average asking rent Under construction 9,272,329 SF -14,449 SF 20.7% $26.25 PSF 150,000 SF Change from previous quarter

40 Jones Lang LaSalle On Point Miami Office Report Q Miami Airport All of the (eight) Class B buildings at Waterford, totaling nearly 830,000 square feet, are now owned exclusively by MetLife. At the Atrium buildings (6100, 6303 and 6505), overall vacancy was up from 8.0 to 10.5 percent and the five West buildings also lost occupancy with a combined 15.3 percent vacancy rate. A 13,500 square foot office in one of the West buildings is the largest contiguous office being offered. Average rental rates (Class A vs. Class B) $ psf $35 Class A rental rates $30 $25 Class B rental rates At Airport Corporate Center, the largest contiguous Class A vacancy remains at 9,300 square feet. The park ended the year with a strong occupancy rate of 95.0 percent. However, look to an additional 24,369 square feet coming available in the first quarter of For the park s Class B product, the 82.0 percent occupancy rate was up slightly over last quarter. 9,200 square feet is the largest contiguous o ffice availability. $20 $15 $10 $5 $ Unchanged for most of the last several years, vacancy at Doral Center s Class A building has remained low, ending the year in the five percent range. The park s Class B buildings posted vacancy at 25.0 percent. However, the amount of available Class B space for lease has gone down, with four buildings slated for a 2010 demolition. Downtown Doral has all approvals in place for its master plan city center at the site of the Doral Center office park. This redevelopment into an upscale office, residential and retail village will result in the demolition of all 26 Class B and C buildings. This will mean that a total of one million square feet of office space will disappear from the market. To date, eight Doral Center buildings have been demolished including Billings, Cleveland, Austin Albany, Springfield, Scranton, Seattle and Plaza. The Seattle building was demolished during first quarter 2009 to make room for the park s new Class A 8333 Downtown Doral office building. The planned residential condominium component, to be known as The Cordoba, broke ground during midyear 2009 for 224 units. The project had been slated as condo sales but has since been repositioned as a rental development. Completion is scheduled for midyear Overall new deliveries / overall net absorption / overall vacancy rates sf in thousands New deliveries YTD Net absorption YTD Vacancy Class A YTD Vacancy Class B YTD % % % % % %

41 Jones Lang LaSalle On Point Miami Office Report Q Miami Airport Even after the Downtown Doral redevelopment project is completed, the Doral Center office park will retain its 400,000 square feet of existing Class A product. As part of the redevelopment, another 400,000 square feet are proposed. Construction began last quarter on the first new office building where one of the state agencies, the Agency for Healthcare, has pre-leased over 43,000 square feet or 29.0 percent of the available space. To comprise 150,000 square feet, the new building will be known as 8333 Downtown Doral and should open by the end of the third quarter The building will rise six stories and offer generous floor plates of 25,000 square feet. Pricing at this point is being quoted between $22.00 and $23.00 per square foot, triple net with a 2010 $10.98 operating expense. Doral Center s Class B Denver building completed its conversion in 2008 to an office condo, comprising nearly 70,000 square feet of space. Marketing of the building, known as 7950 Professional Center, has selling prices of $276 to the slightly reduced $300 per square foot, with 31.0 percent of the space closed. No leasing is available at the project. Vacancy was reduced somewhat at year-end at the combined twobuilding Class A Doral Corporate Center development, registering 19.0 percent at fourth quarter. Building II still contains the largest contiguous office space being marketed at 13,000 square feet. Only two sublets remain, the largest of which is the long standing 5,400 square feet office, former Countrywide (now Bank of America) space which came to market at year-end Although Doral Concourse s Class A Building I remains nearly fully occupied, a 19,500 square foot sublease has been available on the second floor. This is former space for Avaya, a global leader in communication systems, applications, and services. During second quarter 2009, the availability had been expanded to nearly 37,000 square feet, making it one of Miami s largest subleases. Term is through year-end Located near the prestigious Doral Golf Resort & Spa, the move-in condition office space has an asking rate of $16.50 per square foot, triple net with an estimated 2009 operating expense of $ ,500 square feet of space on the top floor at Amadeus Centre is available in the five-story building which is headquartered by Amadeus North America LLC, a leading global distribution system and technology provider to the travel industry. Amadeus occupies the balance of the building. The quoted rental rate stands at $14.00 per square foot, triple net with 2009 operating expenses at $10.35 per square foot. Vacancy at the Class B Lennar Corporate Center park has declined over the last two quarters, standing at 16.5 percent at year-end. Still available is one of the largest contiguous office availabilities: two floors comprising 40,000 square feet in the 730 Building. Another $1.00 per square foot pricing reduction was implemented this quarter to $25.00 per square foot down from $27.00 per square foot at the beginning of the year. On the leasing front, a new 6,000 square foot transaction was completed for Star Clippers, who operates three of the world's largest and tallest sailing vessels. The departure of the FAA at the Class B Doral Court left a significant 35,000 square foot contiguous office space available. The asking rate is $18.00 per square foot, full service Waterford was completed on schedule during third quarter Mirroring its recent Class A 701 and 703 Waterford buildings, TIAA- CREF and the Hogan Group constructed a 10-story, 247,000 square foot building, to be the first LEED certified building in the Waterford at Blue Lagoon office park. Located next to the Sofitel Hotel, ownership had secured several pre-leased tenants: relocating from Coral Gables, law firm Mintzer Sarowitz et al, for 9,124 square feet and global engineering/consulting firm, Black & Veatch for 3,000 square feet. Its first tenant Sandler, Travis & Rosenberg, an international trade and customs law firm committed to 16,000 square feet from within the park (exiting 10,000 square feet from 5200 Waterford). Just prior to opening, Aerolíneas Argentinas signed a 5,000 square foot lease. The airlines will relocate from within the park (5301 building). At year-end, a substantial new tenant was signed Turner Construction who will occupy 17,500 square feet in a relocation from Downtown Miami. This brings the occupancy up to 22.0 percent.

42 Jones Lang LaSalle On Point Miami Office Report Q Miami Airport The Waterford office park also has what is known as its 20-acre core site the final build-out of three additional Class A buildings totaling 800,000 square feet. Accompanying support amenities are proposed to include a hotel, retail, restaurants and a health club component. Except for the Burger King headquarters, most of their office product has been built on speculation. TIAA-CREF is one of the market s largest commercial real estate owners with nearly 4.0 million square feet of both office and retail space spread out through Miami-Dade County. The owner of the former Ryder System headquarters property, Shoma Development, completed a new 231,500 square foot Class A office building during midyear Part of a master-planned site, the 11- story One Park Square, located at 3470 N.W. 82nd Avenue, had the project s developer as the first tenant, who will occupy their headquarters in 12,000 square feet on the ninth floor by early During fourth quarter, Alcora Group, an international trade firm, signed a lease for 6,700 square feet, also on the ninth floor. The overall project will eventually incorporate a hotel, a retail component (150,000 square feet) and residential product recently refigured (400 apartments) due to the downfall in the overall housing market. The retail segment will be geared towards urban style, higher end users. Asking prices for the office space are now $22.00 to $24.00 per square foot, triple net. Operating expenses are $9.04 per square foot. The landlord is offering a parking ratio of 4.0 spaces per 1,000 square feet. While geographically outside of the competitive set, office product has opened at Flagler Station, located northwest of the airport in Medley. Comprised largely of industrial product, the first two multi-tenant office buildings have opened in a development that can eventually accommodate up to 10 million square feet 550,000 of which can be office space. Presently, the 950-acre campus has 3.5 million square feet of existing space. The first two office buildings (built in 2006 and 2007) total 118,000 square feet each and are posting occupancy at 88.0 and 97.0 percent, respectively. New availabilities, however, include a substantial 30,000 square foot sublet at the 1200 Building, half of the Brightstar Corporation space. Term is no less than five years with pricing listed only as negotiable. Building 1300, which mirrors the other two buildings except in size 156,000 square feet was completed in 2009 but opened with no pre-leasing. Pricing remained at $18.00 per square foot, triple net with an $8.55 per square foot operating cost. The project offers a generous parking ratio of 5/1,000 square feet. The park is also the location for Ryder Systems 250,000 square foot headquarters facility.

43 Jones Lang LaSalle On Point Miami Office Report Q Miami Airport Demand The submarket s largest Class A lease this quarter occurred at Waterford: a 60,000 square foot renewal for FedEx at the 701 Building. In addition, Nokia renewed for 25,000 square feet at 703 Waterford. Other renewals included Hand Innovations for nearly 16,000 square feet (6303 building), communications firm PAETEC for 7,700 square feet (5301 building) and Charney Palacios for 7,000 square feet (5201 building). Other Waterford transactions included the in-park relocation and expansion for Hospice of the Palm Coast for nearly 10,000 square feet, Bank of America s 7,200 square foot renewal for their home loan division and software designer Mariner System s 7,500 square foot renewal. On the sublet front, Permasteelisa subleased the former CB Richard Ellis office at the 703 building (8,800 square feet). In addition to the Turner Construction transaction, the newly opened 1000 Waterford building welcomed a new financial services tenant - First American Services in a 4,000 square foot lease. The firm will relocate by midyear 2010 from the office condo Douglas Centre project in nearby Coral Gables. Renewals made up the majority of leasing activity at Airport Corporate Center and included two Class A transactions, Symetra Life Insurance Company (7,700 square feet) and Ecolab, Inc. (3,200 square feet) and the largest Class B transaction of 3,900 square feet for Network Engineering Services, which was also an expansion. United HomeCare signed a new 24,000 square foot transaction at the Class A Westside Plaza I. United, who will move in by midyear 2010, will relocate from the Class B Palm Coast 2 at Doral Center to occupy the former Blue Cross Blue Shield space. Excellent leasing this year in the form of 175,000 square feet at the Class A Westside Plaza asset reduced vacancy to approximately 11.0 percent. Significant lease transactions FedEx Waterford Nokia Waterford United Homecare Westside Plaza Attorney s Title Doral Center Turner Construction Waterford Hand Innovations, LLC Waterford Large contiguous availabilities The Office at Park Square Doral 1000 Waterford Flagler Station-Building 1300 Lennar Corporate Center Doral Concourse Doral Costa Amadeus Centre 60,000 SF 25,000 SF 24,000 SF 19,500 SF 17,500 SF 16,000 SF Class A 213,000 SF Class A 197,000 SF Class A 156,000 SF Class B 40,000 SF Class A 37,000 SF Class A 35,000 SF Class B 32,500 SF

44 Jones Lang LaSalle On Point Miami Office Report Q Miami Airport Relocating from within the Doral Center office park, Attorney s Title signed a new lease at the Class A Davenport building for 19,500 square feet. Their previous office was at the older, Class B Flint building which is slated for demolition. In addition, LG Electric expanded and renewed for a total of 6,000 square feet at their Class A Trenton building office. Class B leasing activity totaled 32,000 square feet in renewals for various users. Doral Corporate Center welcomed Bouygues Civil Works in a new lease for 5,000 square feet. Bouygues was awarded the contract to provide the new tunnel for the Port of Miami in Downtown. Prospects touring the market include: Pricing As with most of the market, operating expenses have come down. Combined with the pressure on asking rental rates due to supply outpacing demand, overall pricing has been falling. Rental rates at Waterford remain among the highest quoted, due primarily to the quality of the Class A product and its preferred location. The Class A rate for the park s largest contiguous vacancy remains unchanged from year-end 2008 at $19.25 per square foot, triple net; operating expenses were up at midyear 2009 by $0.75 to the current $14.00 per square foot. Stabilized higher rates at the 701 and 703 buildings are $22.00 per square foot, triple net with a $12.00 operating expense up by $0.25 per square foot. - VITAS Hospice Services for up to 50,000 square feet - Elizabeth Arden for up to 30,000 square feet - GE for up to 30,000 square feet - Road America for up to 25,000 square feet - Kaplan College for up to 25,000 square feet - Gainsco Auto Insurance for 25,000 square feet - Phoenix American Insurance Group for up to 20,000 square feet - Miami Children s Hospital for up to 20,000 square feet - Business Centers International for up to 20,000 square feet - Florida Highway Safety/DMV for up to 20,000 square feet - URS Corp. for up to 20,000 square feet - Big Brothers, Big Sisters for up to 15,000 square feet - YMCA for up to 15,000 square feet - V.Ships for up to 10,000 square feet - Clarvent for up to 10,000 square feet Quoted pricing for the newly delivered 1000 Waterford building ranges from $21.50 to $26.50 per square foot, triple net with operating expenses at $9.50 per square foot. Unchanged for the last three quarters, the Class B West Waterford buildings had full service quotes ranging from $24.00 to $25.00 per square foot. Pricing for the Atrium buildings remained at $18.00 triple net with operating expenses ranging from $11.57 to $12.03 per square foot. For the past year, Class A asking rates at Airport Corporate Center had a base rent quote of $15.50 per square foot, triple net down from the $17.50 to $18.00 year-end 2008 range estimated operating expenses remained unchanged in the range of $12.37 to $12.60 per square foot. Likewise, triple net asking rates for Class B space fell to $11.75 per square foot, down by $2.00 per square foot during the same time period. Associated operating expenses were also unchanged at $12.10 to $12.40 per square foot.

45 Jones Lang LaSalle On Point Miami Office Report Q Miami Airport Class A pricing at the Doral Center office park was reduced in midyear 2009 by five percent and remained unchanged through the rest of the year at a full service rate of $26.50 per square foot. Likewise, asking rates for its Class B product also dropped at midyear from $19.95 to the current range of $17.50 to $18.50 per square foot, full service. Unchanged for most of the year, despite discounted rates which provide an opportunity to upgrade into higher quality space, tenants are choosing to secure deals that lower costs. Prevalent throughout other submarkets, early renewals are providing users looking for immediate rental rate relief while enabling landlords longer term commitments. Reduced rates were implemented at the free-standing Class A Doral Corporate Center project. While quotes are on a triple net basis, the full service rates translate to $24.75 per square foot, down from the $28.00+/- per square foot range quoted for most of the year. Unchanged was the competitive below-market pricing being advertised for the Bank of America sublease at a bargain rate of $20.00 per square foot, full service. Term is through Trends Unchanged for the last two quarters, concessions remain higher for those buildings with the largest vacancies, with offers for up to 12 months of rent abatement. Credit-worthy tenants willing to sign longer commitments can expect an overall average of six months of rental rate concessions nearly double which was offered earlier in the year. While the below-market pricing in the CBD s three under construction buildings is being leveraged outside of the Downtown/Brickell sectors, it is unlikely to have a direct impact on the parks or submarket as a whole. However, with many tenants able to renew in the CBD and Coral Gables markets at favorable rates, demand is likely to be lower for the suburban markets. In the past, the growth of the Airport market had been driven in large part to tenants looking to lower costs. This lower than historical relocation demand is likely to contribute to a slow absorption of available space. The submarket will continue to offer favorable pricing due to lower rents and free parking. A significant number of tenants with sizable requirements in excess of 10,000 square feet are presently touring the market. While most are users with leases expiring near-term, some are out in the market up to three years prior to expiration all of which are eager to lock in favorable rates and provisions. Leasing activity over the last six months has been dominated by large users. Half of the 539,000 square feet of total transactions signed during this period were leases in the 20,000 square feet or greater category. Benefitting principally from some of the largest, renewing users in the market are the Class A Waterford (TIAA-CREF) buildings. Going forward, building representatives are anticipating another successful year with 2010 pointing to encouraging signs of tenant expansions.

46 Jones Lang LaSalle On Point Miami Office Report Q Appendix Miami appendix Statistics Contiguous blocks New Construction & Map Sales Glossary Contacts

47 Jones Lang LaSalle On Point Miami Office Report Q Appendix Miami Statistics YTD completion (sf) Inventory (sf) Direct net absorption (sf) YTD direct net absorption (sf) Total net absorption (sf) YTD total net absorption (sf) YTD total net absorption (% of stock) Direct vacancy (sf) Direct vacancy (%) Total vacancy (sf) Total vacancy (%) Average asking rent ($ psf) Under construction / renovation (sf) CBD Class A 0 7,452, , ,789-91, , % 759, % 939, % $ ,862,992 Class B 0 4,061,905-1, ,437-3, , % 801, % 877, % $ Totals 0 11,514, , ,226-94, , % 1,561, % 1,817, % $ ,862,992 Suburban Class A 478,500 10,936,841-47,763-31,183-58, , % 1,860, % 2,143, % $ ,000 Class B 0 11,013,781-15, ,912-5, , % 1,983, % 2,126, % $ Totals 478,500 21,950,622-63, ,095-63, , % 3,843, % 4,269, % $ ,000 Market Totals Class A 478,500 18,389, , , , , % 2,619, % 3,083, % $ ,012,992 Class B 0 15,075,686-16, ,349-8, , % 2,784, % 3,003, % $ Totals 478,500 33,464, , , ,325-1,308, % 5,404, % 6,086, % $ ,012,992 * Data reflects historical adjustments, reclassifications and conversions

48 CBD Jones Lang LaSalle On Point Miami Office Report Q Appendix YTD completion (sf) Inventory (sf) Direct net absorption (sf) YTD direct net absorption (sf) Total net absorption (sf) YTD total net absorption (sf) YTD total net absorption (% of stock) Direct vacancy (sf) Direct vacancy (%) Total vacancy (sf) Total vacancy (%) Average asking rent ($ psf) Under construction / renovation (sf) Brickell Class A 0 3,334,312-27,971-50,010-15,483-26, % 313, % 370, % $ ,162,992 Class B 0 1,860,862 16,067-67,728 11,223-82, % 393, % 446, % $ Totals 0 5,195,174-11, ,468-4, , % 706, % 817, % $ ,162,992 Downtown Class A 0 4,117,942-78, ,188-75, , % 446, % 569, % $ ,000 Class B 0 2,201,043-17,193-42,979-14,531-49, % 408, % 430, % $ Totals 0 6,318,985-95, ,758-90, , % 854, % 1,000, % $ ,000 Market Totals Class A 0 7,452, , ,789-91, , % 759, % 939, % $ ,862,992 Class B 0 4,061,905-1, ,437-3, , % 801, % 877, % $ Totals 0 11,514, , ,226-94, , % 1,561, % 1,817, % $ ,862,992 * Data reflects historical adjustments, reclassifications and conversions

49 Suburban Jones Lang LaSalle On Point Miami Office Report Q Appendix YTD completion (sf) Inventory (sf) Direct net absorption (sf) YTD direct net absorption (sf) Total net absorption (sf) YTD total net absorption (sf) YTD total net absorption (% of stock) Direct vacancy (sf) Direct vacancy (%) Total vacancy (sf) Total vacancy (%) Average asking rent ($ psf) Under construction / renovation (sf) Aventura/North Miami Class A 0 596,881 12,125-7,926 12,125-5, % 131, % 138, % $ Class B 0 435,283 6,265-4,064 6,265-4, % 38, % 38, % $ Totals 0 1,032,164 18,390-12,676 18,390-9, % 170, % 177, % $ Coconut Grove Class A 0 516,216-3,122-18,943-3,122-52, % 97, % 131, % $ Class B 0 495,748-11,926-46,429-11,926-42, % 94, % 96, % $ Totals 0 1,011,964-15,048-66,161-15,048-95, % 192, % 228, % $ Coral Gables Class A 0 3,248,061-40, ,426-54, , % 431, % 561, % $ Class B 0 1,704,927-40, ,455-40, , % 405, % 422, % $ Totals 0 4,952,988-81, ,871-95, , % 837, % 984, % $ Kendall/Dadeland Class A 0 834, ,455 4,335-12, % 123, % 127, % $ Class B 0 2,022,445 81,687 14,791 86,687 16, % 268, % 285, % $ Totals 0 2,856,678 81,430-2,204 91,022 4, % 391, % 412, % $ Miami Airport Class A 478,500 4,826,038-3,842-17,419-1,766-57, % 921, % 1,018, % $ ,000 Class B 0 4,446,291-12, ,828-12, , % 824, % 898, % $ Totals 478,500 9,272,329-16, ,807-14, , % 1,746, % 1,916, % $ ,000 Miami Beach Class A 0 601,065-5,865-20,649-9,265-16, % 76, % 83, % $ Class B 0 1,280,873-21,742-51,999-21,742-48, % 237, % 246, % $ Totals 0 1,881,938-27,607-72,648-31,007-64, % 314, % 330, % $ * Data reflects historical adjustments, reclassifications and conversions

50 Suburban (continued) Jones Lang LaSalle On Point Miami Office Report Q Appendix YTD completion (sf) Inventory (sf) Direct net absorption (sf) YTD direct net absorption (sf) Total net absorption (sf) YTD total net absorption (sf) YTD total net absorption (% of stock) Direct vacancy (sf) Direct vacancy (%) Total vacancy (sf) Total vacancy (%) Average asking rent ($ psf) Under construction / renovation (sf) Miami Lakes Class A 0 314,347-6,255 16,979-6,255 16, % 77, % 81, % $ Class B 0 628,214-16,395-48,602-11,075-47, % 113, % 138, % $ Totals 0 942,561-22,650-31,623-17,330-30, % 190, % 219, % $ Market Totals Class A 478,500 10,936,841-47,763-31,183-58, , % 1,860, % 2,143, % $ ,000 Class B 0 11,013,781-15, ,912-5, , % 1,983, % 2,126, % $ Totals 478,500 21,950,622-63, ,095-63, , % 3,843, % 4,269, % $ ,000 * Data reflects historical adjustments, reclassifications and conversions

51 Jones Lang LaSalle On Point Miami Office Report Q Appendix Miami CBD buildings with contiguous space A A A B A A A A A B A Downtown Brickell 8 Blocks 3 Blocks 536,500 SF 103,500 SF Miami Center 94,000 SF Bank of International Place 75,000 SF New World Tower 31,500 SF One Biscayne Tower 25,000 SF Wachovia Financial Center 59,000 SF SunTrust International 27,000 SF Omni 225,000 SF 1221 Brickell 45,000 SF 801 Brickell 34,000 SF Rivergate Plaza 24,500 SF Contiguous blocks greater than 20,000 square feet

52 Jones Lang LaSalle On Point Miami Office Report Q Appendix Miami Suburban buildings with contiguous space A A B A A A A A B A A B A B B A B B A B B Coconut Grove Coral Gables Kendall Miami Airport 3 Blocks 4 Blocks 2 Blocks 12 Blocks 72,000 SF 134,500 SF 59,000 SF 789,000 SF SBS Tower 29,000 SF Columbus Center 60,000 SF 9300 S. Dadeland 34,000 SF The Office at Park Square Doral 213,000 SF Mayfair in the Grove 43,000 SF Douglas Entrance 25,000 SF Town & Country Corporate Center 25,000 SF Flagler Station-Building ,000 SF 121 Alhambra 22,000 SF 1000 Waterford 100,000 SF 2800 Ponce 27,500 SF Flagler Station Building ,000 SF 8000 N.W. 25 th Street (MICC) 45,000 SF Lennar Corporate Center 40,000 SF Doral Concourse 37,000 SF Doral Costa 35,000 SF Amadeus Centre 32,000 SF 6355 N.W. 26 th Street 20,000 SF MICC 46,000 SF 9100 N.W. 36 th Street 35,000 SF Contiguous blocks greater than 20,000 square feet

53 Jones Lang LaSalle On Point Miami Office Report Q Appendix Miami Suburban buildings with contiguous space B B Miami Beach 1 Block 20,000 SF Miami Lakes 1 Block 25,000 SF 1111 Lincoln Road 20,000 SF 7900 N.W. 154 th Street 25,000 SF Contiguous blocks greater than 20,000 square feet

54 Jones Lang LaSalle On Point Miami Office Report Q Appendix Downtown/Brickell construction map Construction in progress Brickell Avenue 2 Met 2 (MDM and MetLife Development) 3 Brickell Financial Centre 2 3 1

55 Jones Lang LaSalle On Point Miami Office Report Q Appendix Coral Gables construction map Proposed construction 1 Ponce De Leon Towers Alhambra 2 1

56 Jones Lang LaSalle On Point Miami Office Report Q Appendix Miami Airport construction map 3 Completed construction 1 The Office at Park Square Doral (former Ryder HQ) Waterford 1 Construction in progress Downtown Doral (Doral Center) 2

57 Jones Lang LaSalle On Point Miami Office Report Q Appendix Miami Suburban new supply construction Miami Airport, 478,500 SF delivered YTD, 9.4 percent pre-leased Q Q Q Q Address RBA Developer Percent pre-leased Major tenant (if any) 3470 N.W. 82 nd Ave (The Office at Park Square Doral) 231,500 SF Shoma Development 5.0% pre-leased Shoma Development 1000 Waterford 247,000 SF TIAA-CREF 22.0% pre-leased* Sandler, Travis & Rosenberg; Mintzer Sarowitz; Black & Veatch; Aerolíneas Argentinas; Turner Construction; First American *Includes leases signed after close of statistical reporting

58 Jones Lang LaSalle On Point Miami Office Report Q Appendix Miami CBD under construction Market/building Class Developer/owner RBA Pre-leased Major tenants signed Average quoted rent Delivery date CBD Downtown Met 2 A MDM and MetLife 700,000 SF 32.0% Greenberg Traurig; Business Centers International; Deloitte $46.50/FS 2Q ,000 SF 32.0% Brickell 1450 Brickell A Rilea Group 570,000 SF 17.3%* Bilzen Sumberg; Bancaja; Ratzen & Rubio; Agri Commodity Trade $45.00/FS 2Q 2010 Brickell Financial Centre A Foram Group 592,992 SF 0.0% N/A $49.60/FS Indefinitely Delayed 1,162,992 SF 8.5% CBD totals *Includes pre-leasing commitments signed after close of statistical reporting 1,862,992 SF 17.3%

59 Jones Lang LaSalle On Point Miami Office Report Q Appendix Miami Suburban under construction Market/building Class Developer/owner RBA Pre-leased Major tenants signed Average quoted rent Delivery date Suburban Miami Airport 8333 Downtown Doral (Doral Center) A Flagler Development 150,000 SF 29.0% Agency for Healthcare $22.50/NNN 3Q 2010 Suburban totals 150,000 SF 29.0%

60 Jones Lang LaSalle On Point Miami Office Report Q Appendix Miami Suburban select sales Coral Gables Bacardi Headquarters Class RBA Buyer Seller Price per SF Date sold A 251,000 SF Ponte Gadea Flagler Development JV JP Morgan Chase $406.00* December 2009 *Approximate

61 Glossary Jones Lang LaSalle On Point Miami Office Report Q Appendix

62 Jones Lang LaSalle On Point Miami Office Report Q Appendix Common real estate terms Active requirements: Tenants actively seeking space in the market Average asking rent: Quoted at a gross price exclusive of tenant electricity based on a weighted average of available space Available space: Existing space that is being actively marketed for immediate or future occupancy, including both direct and sublease space Build-out: The cost of configuring and finishing new space in accordance with a tenant s specifications Build to suit: A method of leasing property whereby the landlord builds a new building in accordance with a tenant s specifications Capital improvement: Any major physical development or redevelopment to a property that extends the life of the property. Examples include upgrading the elevators, replacement of the roof and renovations of the lobby Class: Building classification system broken down by Trophy, Class A, B and C buildings. Location, building amenities, mechanical / HVAC systems, age of building and tenant roster are some of the components that determine an office building's class Concessions: Cash expended by the landlord in the form of rent abatement, build-out allowance or other payments to induce the tenant to sign a lease. The level of concessions fluctuates with supply and demand conditions in the market and is up for negotiation in a similar fashion to rental rates Contiguous space: Adjoining office space Delivered buildings: Buildings that have completed construction and are ready for tenant build-out. May or may not yet have a Certificate of Occupancy Direct rent: Rents quoted directly from the landlord on vacant space Effective rent: The rental rate actually achieved by the landlord or tenant after deducting the value of concessions from the base rental rate paid; usually expressed as an average rate over the term of the lease Face rental rate: The asking or nominal rental rate published by the landlord Gross leases: The quoted rents include tax and operating costs (property taxes, insurance and maintenance expenses) Hard cost: The cost of actually constructing property improvements Indirect (soft) costs: Development costs other than material and labor costs, which are directly related to the construction of improvements, including administrative and office expenses, commissions, architectural, engineering and financing costs Lease: A legally binding agreement whereby the owner of real property (i.e., landlord) gives the right of possession to another (i.e., tenant) for a specified period of time (i.e., term) and for a specified consideration (i.e., rent) Leased space: Existing space under contract, regardless of if it is occupied; also includes subleased space NNN leases: The quoted rents do not include tax and operating costs (property taxes, insurance and maintenance expenses) Net absorption: Net change in occupied space between two dates measured as square footage. (i.e. a measure of the total square feet leased over a period of time taking into consideration office space vacated in the same area during the same period) Occupied space: Total supply minus available space Operating expense: The actual costs associated with operating a property, including maintenance, repairs, management, utilities, taxes and insurance Preleased space: Space that has been leased prior to construction completion date or Certificate of Occupancy date

63 Jones Lang LaSalle On Point Miami Office Report Q Appendix Proposed construction: Buildings are proposed when permits are in place, site is being actively marketed but significant base building has not yet commenced. Proposed asking rents are not included in market calculations Shell space: The interior condition of the tenant's usable square footage when it is without improvements or finishes. Shell construction typically denotes the floor, windows, walls and roof of an enclosed premises and may include some HVAC, electrical or plumbing improvements but not demising walls or interior space partitioning Sublease space: Leased space that is being actively marketed by the tenant under contract to another party Tenant at will: One who holds possession of premises by permission of the owner or landlord, but without agreement for a fixed term Tenant improvement allowance (TI): Improvements to land or buildings to meet the needs of tenants. May be new improvements or remodeling, and may be paid for by the landlord, the tenant, or shared Total supply: The entire area of an office building comprised of both usable space and an allocated portion of the common area Turn key project: A project in which the developer is responsible for the total completion of a building (including interior design and construction) or demised premises to the customized requirements of a future owner or tenant Under construction: Buildings are under construction when significant work is underway from ground up development (i.e. steel is going up) Under renovation / rehab: Buildings are under renovation / rehab when significant base building renovation is underway Vacant space: Direct existing space being actively marketed for immediate occupancy as of the survey date, not including sublease space

64 Jones Lang LaSalle On Point Miami Office Report Q Appendix Miami contacts Research Roberta C. Steen Senior Market Analyst Leasing and Management Kurt R. Keaton Market Director, Florida Scott Strickland Senior Vice President Glenn H. Gregory Senior Vice President Jorge L. Morales, CCIM Vice President Grant Killingsworth Vice President Jeff Sharmat Vice President Angelique Salas Leasing Associate Regena Blue Leasing Assistant Lisa K. Jesmer Senior Vice President/ Regional Manager Richard Schuchts Senior Vice President Keith Edelman Senior Vice President Scott Goldstein Vice President Gavin Macphail Vice President Catarina Jimenez Vice President Kim Colquitt Broker Associate Mike Crissy Senior Associate Justin Burrows Associate Broker Capital Markets Jubeen Vaghefi Managing Director Jeff Morris Managing Director

65 About Jones Lang LaSalle Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2008 global revenue of $2.7 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.4 billion square feet worldwide. LaSalle Investment Management, the company s investment management business, is one of the world s largest and most diverse in real estate with more than $37 billion of assets under management. For further information, please visit our Web site, Jones Lang LaSalle 701 Brickell Avenue Suite 860 Miami, FL Tel: Fax: Jones Lang LaSalle IP, Inc. All rights reserved. No part of this publication may be reproduced by any means, whether graphically, electronically, mechanically or otherwise howsoever, including without limitation photocopying and recording on magnetic tape, or included in any information store and/or retrieval system without prior written permission of Jones Lang LaSalle. The information contained in this document has been compiled from sources believed to be reliable. Jones Lang LaSalle or any of their affiliates accept no liability or responsibility for the accuracy or completeness of the information contained herein and no reliance should be placed on the information contained in this document. Licensed Real Estate Broker.