RCAnalytics.com US Capital Markets Update to October 16, 2012 Dan Fasulo.

RCAnalytics.com

US Capital Markets Update

to

October 16, 2012Dan Fasulo

Transaction Activity Slowing around World

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Global: Most Active Acquisition Targets

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Market/Property Type Targets in H1’12

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US Q3’12 Preview

Quarterly Sales Volume office, industrial, retail, apartments, hotels and dev sites

Year-Over-Year Change

-

20

40

60

80

100

120

140

160

180

'06 '07 '08 '09 '10 '11 '12

Bill

ion

sEntity

Portfolio

Individual

-100%

-50%

0%

50%

100%

150%

200%

'06 '07 '08 '09 '10 '11 '12

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US H1’12 Review: Top Markets

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US H1’12 Review: Property Sectors

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Multifamily Land in High Demand

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US Cap RatesAverage Cap Rates by Sector

Apartment

RetailIndustrial

Of f ice - CBD

Off ice - Sub

75

100

125

150

175

200

225

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Moody’s/RCA CPPI

CBD Office & Apartments Leading Recovery in Prices

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National

6 Major Metros

Non-Major Metros

75

100

125

150

175

200

225

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Moody’s/RCA CPPI

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Capital Remains Concentrated in Largest Markets

Miami

Phila

Seattle

Dallas Houston

50

75

100

125

150

175

200

225

'01

'02

'03

'04

'05

'06

'07

'08

'09

'10

'11

'12

PhoenixAtlanta

Las Vegas

50

75

100

125

150

175

200

225

'01

'02

'03

'04

'05

'06

'07

'08

'09

'10

'11

'12

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Next Favored Tier of Markets Emerging

Rebounding Still ChallengedRCA CPPI

Commercial Property Prices Apartment Property Prices

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Wide Disparity in Market Prices

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Equity Capital

** Excludes entity level transactions

Composition of Lenders

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Debt Capital: Credit Conditions Improving

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Distress Improving, but Still a Problem

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Distress Improving, but Still a Problem

Attraction of Commercial Real Estate

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Average US CRE Cap Rates to US Treasuries

©2012 Real Capital Analytics, Inc. All rights reserved. Data believed to be accurate but not guaranteed; subject to future revision; analyses based on properties & portfolios $2.5 million and greater.

Thank You

dfasulo@rcanalytics.com