January 2012 Market Report

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January 2012 Market Report Office Average Vacancy Rates Dec-11 10.6% 14.5%

Nov-11 10.9% 14.7%

Dec-10 10.9% 13.9%

Midtown South Class A Midtown South Class B

8.0% 8.9%

5.5% 9.5%

7.4% 12.4%

Downtown Class A Downtown Class B

8.6% 13.6%

8.3% 13.5%

11.8% 15.9%

Midtown Class A Midtown Class B

Average Asking Rent (PSF) Midtown Class A

Dec-11 $70.85

Nov-11 $70.40

Dec-10 $65.29

Midtown Class B

$43.83

$43.72

$42.57

Midtown South Class A Midtown South Class B

$54.71 $43.12

$49.53 $42.92

$48.81 $39.30

Downtown Class A

$42.52

$42.64

$41.92

Downtown Class B

$34.05

$33.84

$33.25

Source: Cassidy Turley

DJIA vs. NYC Unemployment 11.0%

12,500.00 11,500.00 9.0% 10,500.00 8.0%

9,500.00

7.0%

8,500.00

6.0%

7,500.00

5.0%

6,500.00 Dec- Jan- Feb- Mar- Apr- May- Jun- Jul-11 Aug- Sep- Oct- Nov- Dec10 11 11 11 11 11 11 11 11 11 11 11

DJIA

Source: NYS Department of Labor Source: NYC Office of Management and Budget

NYC Unemployment

DJIA

NYC Unemployment

10.0%

Economic Indicators

Dow Jones(^DJI) % Change & Montly Close

60%

14,500

50%

13,500

40%

12,500

30%

11,500

20%

10,500

10%

9,500

0%

8,500

-10%

7,500

-20%

6,500

Dec-10 Jan-11

Feb-11 Mar-11 Apr-11 May-11 Jun-11

Jul-11

Dow Jones (^DJI) % Change

Aug-11 Sep-11 Oct-11 Nov-11 Dec-11

Dow Jones (^DJI) Close

Nasdaq(^IXIC) % Change & Monthly Close 3000

70% 60%

2750

50% 40%

2500

30% 2250

20% 10%

2000

0% -10%

1750

-20% -30%

1500

Dec-10

Jan-11

Feb-11 Mar-11 Apr-11 May-11 Jun-11

Jul-11

Nasdaq (^IXIC) % Change

Aug-11 Sep-11 Oct-11 Nov-11 Dec-11

Nasdaq (^IXIC) Close

S&P 500(^GSPC) % Change & Monthly Close 15% 1,500

10% 5%

1,400

0%

1,300

-5% -10%

1,200

-15%

1,100

-20% 1,000

-25% -30%

900

Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11

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

Jul-11

Aug-11 Sep-11 Oct-11 Nov-11 Dec-11

S&P 500 (^GSPC) Close

(In Thousan

Foreign Exchange Rate 12/30/11 USD to CAD Euro to USD Pound to USD USD to Peso USD to Yen

11/25/11

12/30/10

1.02

1.05

1.00

1.30 1.55 13.95 76.98

1.32 1.55 14.25 77.66

1.33 1.54 12.38 81.67

Source: Federal Reserve Bank of NY

Prime Rate

December-11 3.25%

November-11 3.25%

December-10 3.25%

Source: New York Federal Reserve Bank

Consumer Price Index (1982-84 = 100) December-11

November-11

December-10

248.307

249.317

241.874

Change To Dec-11 From: Nov-11 -0.41%

Dec-10 2.66%

Source: Bureau of Labor Statistics

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

Total Financial Activities Services Wholesale Trade Retail Trade Government Construction Manufacturing Real Estate, Rental and Leasing Transportation & Utilities Unemployment Rate Source: NYS Department of Labor

Dec-11 3,794.6

Nov-11 3,789.9

Dec-10 3,758.0

432.3

434.9

431.9

1,733.8 140.4 326.7 545.6 104.2 71.8 117.5 121.4 8.8%

1,727.3 140.8 322.8 544.4 107.4 73.3 118.2 120.9 9.1%

1,696.3 137.9 312.9 547.9 108.8 75.8 116.2 121.7 8.6%

Housing Mortgage Rates NYC Week Ending 12/30/11 Week Ending 11/25/11 Week Ending 12/31/10

15 Yr

30 Yr

1 Yr Adj.

3.71% 3.72% 4.60%

4.35% 4.38% 5.22%

3.70% 3.49% 4.19%

Source: HSH Associates

Monthly Housing Permits Issued

2011 January February March April May June July August September

BX 95 108 2 127 78 303 17 227 4

BK 134 127 30 12 241 371 137 120 46

MN 21 31 94 0 0 1199 46 335 10

QN 173 15 223 309 929 178 290 70 99

SI 42 12 34 51 24 153 35 92 51

NYC To Month 465 293 383 499 1,272 2,204 525 844 210

NYC to Date 465 758 1,141 1,640 2,912 5,116 5,641 6,485 6,695

October November December

16 47 92

85 52 167

258 520 21

153 85 658

20 34 33

532 738 971

7,227 7,965 8,936

1,116

1,522

2,535

3,182

581

8,936

8,936

Month

2011 Total to Date

2010 January February

BX 8 35

BK 47 46

MN 0 0

QN 57 96

SI 141 33

NYC To Month 253 210

NYC to Date 253 463

March

13

82

326

96

25

542

1,005

April May June July August September October November December

37 18 435 140 85 6 7 85 195

17 238 612 68 119 59 74 48 683

65 89 12 0 0 176 5 0 199

58 166 388 130 165 99 457 59 587

40 41 40 36 23 24 43 30 32

217 552 1,487 374 392 364 586 222 1,696

1,222 1,774 3,261 3,635 4,027 4,391 4,977 5,199 6,895

2010 Total to Date

1,064

2,093

872

2,358

508

6,895

6,895

Jan - Dec 2010 Jan - Dec 2011 Percent Change 10-11

Bronx 1,064 1,116 5%

Brooklyn 2,093 1,522 -27%

Month

Year To Date Comparison

Source: U.S. Census Bureau Monthly and Annual Totals are reported separately by the U.S. Census Bureau

Manhattan 872 2,535 191%

Queens 2,358 3,182 35%

Staten Island 508 581 14%

NYC Total to Date 6,895 8,936 30%