C&C San Francisco Office Q3 2009

Third Quarter • San Francisco • Office Report SAN FRANCISCO OFFICE

Lic #00832933 One Bush Street, Suite 400 • San Francisco, CA 94104

Tel: 415.445.8888 • Fax: 415.445.8886 www.ccarey.com

Cornish & Carey Commercial San Francisco Quarterly Report is based on a quarterly survey of competitive office buildings. The data included in this report incorporates not only space presently available on the market, but also space which we have been led to believe will come onto the market in the foreseeable future. Information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but make no guarantee, warranty or representation about it. All information should be verified prior to lease or purchase.

SAN FRANCISCO OFFICE • THIRD QUARTER

TABLE OF CONTENTS

Coverage Map 1

San Francisco Market Overview 2

San Francisco Market Summary 3

San Francisco Market Highlights 4

C&C Focus 6

North Financial District Market Summary 8

South Financial District Market Summary 10

North Waterfront / Jackson Square Market Summary 12

Van Ness / Civic Center Market Summary 13

Union Square Market Summary 14

SoMa Market Summary 15

Agent Roster 18

1


COVERAGE MAP

2


OFFICE UPDATE AND Q3 2009 IN REVIEW

By: Ryan Carmichael, Financial Analyst / Market Research Coordinator San Francisco has certainly experienced the pain of the recession, though it is seeing a glimmer of light as the third quarter draws to a close. Unemployment (currently at 10.1 percent) has more than doubled since the beginning of 2008 and is now higher than the U.S. average of 9.8 percent. While job lay-offs continue in architecture, engineering, financial and professional service firms, there are signs of increased employment in technology. Open job requirements for internet and software companies are leading the charge and as a result, an expansion of occupied square footage for selected firms will likely occur in 2010. This expansion however remains off-set by the continued “bottom line” expense focus across most other industries and suggests continued job cuts into 2010. The increase in M&A activity - i.e. Sun Microsystems, Golden Gate Software, Oracle - will likely lead to further consolidations and more negative absorption through Q2-2010. The third quarter net absorption was negative 511,631 square feet, bringing the YTD total to 2,293,889 square feet. Economic uncertainty and continued company downsizing (combined with the seasonally slow summer period) translated into tepid leasing velocity in San Francisco. The majority of deals inked in the third quarter were prompted by tenants seeking to restructure in-place lease terms, which in many cases resulted in early renewals and space consolidation. Three out of the five largest transactions of the quarter; Brown & Toland, Open TV, and Pure Digital were just such deals. In another example, RCM Capital reduced the size of its San Francisco operations by nearly 50 percent when it inked a deal to move from its current location at 4 Embarcadero Center into its new, 35,130 square feet space at 555 Mission Street. Additional lease commitments were in subleases, as firms cashed in on quality office space marketed at heavily discounted rates. The largest of the quarter was the Nektar Therapeutics, Inc. sublease of 102,283 square feet of Pfizer’s (first generation) space at 455 Mission Bay Blvd. South in the Mission Bay submarket. The sublease,

which took less than 90 days to complete, illustrates demand for life science/lab space remains alive in Mission Bay. What’s more, the San Francisco office market experienced a decline in vacant sublease space for the first time in seven quarters. Class A vacancy in the CBD actually dropped slightly in the quarter; however the excitement is tempered by the steady increase in available space (space which is marketed for lease but still occupied) to 7,072,268 square feet and the citywide vacancy showing an increase to 14.43 percent from 13.82 percent in the second quarter of 2009. Furthermore, citywide class A availability increased to 17.33 percent which translates to more than 8.3 million square feet of office space being marketed for lease over the next 12 months. At the height of the dot com crash, this number was 10.1 million square feet. For properties with “shell” or first generation spaces, it is necessary to provide generous concession packages and low face rents to compete with “improved” or second generation spaces to encourage forward lease commitments. For owners with access to capital, their success is well noted. Tishman Speyer’s 555 Mission Street continues to sign deals as noted above with RCM Capital, and most recently Silicon Valley Bank committed to 35,274 square feet for 10 years. These transactions received TI Allowances around $80.00 per square foot. For the majority of Landlords, there is difficulty in obtaining capital for tenant improvements and transaction costs. Liquidity and work-outs with existing lenders remains of key focus. Tenant improvement packages (which once were easily $40-$50/sf) are now declining to $20 to $35/sf. In exchange the Landlords are reducing their asking rents to entice commitments. Class A rates have slip below $35.00 per square foot at the end of the third quarter and will continue to trend lower, approaching pricing levels not seen since 2005.

This period affords an incredible opportunity to lock in lower rents for tenants who have confidence in their business and growth projections. Early “Blend & Extends” requests are quickly becoming the norm for those firms with 2010 and early 2011 lease expirations…however its important to note that not all Landlord’s are pressured (or have the ability) to restructure existing leases. The lender(s) on the buildings are more active in the decisions which affect cash flow and they also know that with each passing quarter the market continues to edge closer to health. Rents will eventually rise; especially for spaces which are well improved in quality properties….it continues to be a matter of “when”.

3


OFFICE MARKET HIGHLIGHTS - LEASING

2009 2009

Submarket Net Rentable Area * Availability Total Vacancy 3 Total Availability Class A Class B Class C Q3 Net Absorption 2 Y-T-DNorth Financial District 28,691,601 5,503,938 14.35% 19.18% $35.40 $28.00 $23.00 (124,578) (591,814)South Financial District 24,749,615 3,603,070 10.39% 14.56% $35.30 $28.00 $23.00 148,943 (183,256)North Waterfront/Jackson Sq. 6,840,596 1,119,322 10.56% 16.36% $30.70 $27.00 $24.00 27,780 (207,900)Van Ness/Civic Center 6,817,902 1,290,867 9.53% 18.93% $29.27 $25.00 $23.00 (27,224) (187,332)Union Square 5,825,157 823,584 11.45% 14.14% $30.00 $28.00 $24.00 (119,517) (191,878)SoMa** 10,679,148 3,335,143 31.23% 31.23% $30.30 $27.00 $24.00 (417,035) (931,709)San Francisco Office Market 83,604,019 15,675,924 14.43% 18.75% $34.64 $27.26 $23.75 (511,631) (2,293,889)** SoMa Inventory includes the following markets: South of the Market; Yerba Buena; Multimedia Gulch; Mission Bay; South Beach; Inner Mission & Potrero Hill

Average Asking Rate 1

Historical Trends

Class A Quarter Total RSF Direct Vacant Sublet Vacant Vacancy Absorption Rental Rates 12005/Q3 45,134,630 4,934,788 1,408,976 14.1% 464,534 $32.56

Q4 44,794,249 4,644,515 1,246,239 13.2% 303,271 $33.402006/Q1 45,181,682 3,802,372 717,040 10.0% 283,495 $33.46

Q2 45,265,952 3,899,723 692,683 10.1% 111,350 $35.27Q3 45,267,770 3,412,272 583,281 8.8% 213,537 $35.88Q4 45,278,227 3,224,700 643,023 8.5% 210,841 $36.80

2007/Q1 46,668,376 3,422,734 441,075 8.3% 91,954 $42.02Q2 46,663,509 3,286,066 487,191 8.1% 92,522 $43.32Q3 46,663,509 3,083,395 355,421 7.4% 240,597 $46.82Q4 46,663,509 2,976,387 352,776 7.1% 154,149 $46.82

2008/Q1 47,322,203 2,754,242 365,733 6.6% 209,188 $46.91Q2 47,595,475 3,243,799 393,792 7.6% (517,616) $46.94Q3 47,595,475 3,448,110 744,607 8.8% (555,126) $44.07Q4 48,151,794 4,587,686 841,335 11.3% (1,236,304) $41.26

2009/Q1 48,219,559 4,968,642 1,122,238 12.6% (661,859) $37.02Q2 48,219,559 5,009,042 1,273,766 13.0% (190,864) $35.49Q3 48,219,559 4,995,774 1,178,876 12.8% 108,158 $34.64

HISTORICAL VACANCY VS. LEASE RATES

1 Rates are Quoted as Full Service 2 Absorption is based on vacant square footage 3 Vacancy is based on vacant square footage * Includes all Classes of Office Space

4


OFFICE MARKET HIGHLIGHTS - LEASING

455 Mission Bay Boulevard

BY THE NUMBERS

±102,283 Square feet Nektar Therapeutics, Inc subleased from Pfizer at 455 Mission Bay Blvd. South. The 10-year sublease, which commences upon completion of the project in the second quarter of 2010, illustrates demand for science/lab space remains alive in Mission Bay.

Significant Leases (By Square Foot) Top Leases for Q3 2009

Tenant Lessor (Sublessor) Address Sq. Ft.

Nektar Therapeutics, Inc. (S) Pfizer 455 Mission Bay Blvd S. 102,283

Brown & Toland ( R) American Assets, Inc. 153 Townsend Street 51,871

Open TV ( R) Vornado Realty Trust 275 Sacramento Street 42,565

Pure Digital / Cisco (E) McCarthy Cook 185 Berry Street (Wharfside) 37,500

Silicon Valley Bank Tishman Speyer/ ADIA 555 Mission Street 35,274

Top Pending Leases

Tenant Lessor (Sublessor) Address Sq. Ft.

Zynga CBRE Investors 550 Terry Francois 130,000

Del Monte Morgan Stanley One Maritime Plaza 100,000

Exploratorium Port of San Francisco Pier 15 & 17 100,000

Goldman Sachs Vornado Realty Trust 555 California Street 45,000

Foley & Lardner Vornado Realty Trust 555 California Street 30,000

Top 5 Contiguous Spaces (vacant/ available in 12 months)

Address Lessor (Sublessor) Sq. Ft.

150 Hayes St, 100 Van Ness Ave, 150 Van Ness Ave. Patson Group / Vornado Realty Trust 584,487

1355 Market Street (connects w/ 875 Stevenson) The ADCO Group 955,000

370 Third Street JER/ Lane Partners 366,287

155 5th Street Continental Development Corp. 349,286

650 Townsend Street TMG Partners 274,563

1 Montgomery ( S ) ( C ) Charles Schwab 300,090

( S ) = Sublease

( R ) = Renewal

( E ) = Expansion

( C ) = Cornish & Carey Involvement

5


OFFICE MARKET HIGHLIGHTS- SALES

BY THE NUMBERS

±116,078 Square feet of class “A” was purchased by Argonaut Private Equity, as 250 Montgomery Street became the first distressed asset to sell in San Francisco. Lender, Real Finance Corporation sold the office tower for a reported $19.7 million or $170/s.f. Lincoln Property purchased the office tower in 2006 for $49 million and defaulted in 2008.

250 Montgomery Street

Significant Sale Statistics (By Square Foot) Top Buildings Sales in Q3 2009 (By Square Foot)

Building Sq. Ft. Seller Buyer

250 Montgomery Steet 116,078 CBRE Investments Argonaut Private Equity

564 Market Street 59,100 Genaro Mendoza Chelsea Pacific Holdings

Top Buildings for Sale (Over 50,000 Square Foot)

Building Sq. Ft. Seller Buyer

550 Terry Francois Blvd 282,773 Tishman Speyer GLL Real Estate Partners

120 Howard Street (Note sale) 147,750 Prudential TBD

49 Stevenson Street 121,179 Core Fund Oak Brook Property, LLC TBD

Building Sq. Ft. Owner Location Completion Date Major Tenant

1500 Owens 157,929 Alexandria Real Estate Mission Bay Q4 2009 UCSF - Orthapedics

1 Kearny Street ( R ) ( E ) 94,000 Joseph & Maria Fang NFD Q4 2009 None

455 Mission Bay Blvd. 210,000 Alexandria Real Estate Mission Bay Q2 2010 Nektar Therapeutics, Inc.

Building Sq. Ft. Owner Location Status

222 Second St. 700,000 Tishman Speyer SFD Planning

350 Mission Street ( C ) 430,000 GLL Real Estate Partners SFD Planning / Marketing Space

350 Bush Street & 500 Pine Street 400,000 Lincoln Properties NFD On Hold

680 Folsom Street ( R ) 350,000 RREEF / CalPERS SFD On Hold

535 Mission Street 307,000 Beacon Capital Partners SFD On Hold

Piers 27-31 300,000 Shorenstein Company North Waterfront Planning

Foundry Square 3 197,000 Wilson Meany Sullivan SFD Approved / Marketing Space

Projects Under Construction (By Completion Date)

Projects Planned (By Square Footage)

( R ) = Renovation

( E ) = Expansion


6


C&C FOCUS – TIER 1, 2 & 3

Energy Star LEED – Certified LEED - Pending

7


C&C FOCUS – TIER 1, 2 & 3

Energy Star LEED – Certified LEED - Pending

8


NORTH FINANCIAL DISTRICT MARKET SUMMARY

3rd Quarter, 2009

Building Class Total RSF Overall Direct Sublet Overall Direct Sublet Current Quarter Q2 '09 Rental Rates1A 21,546,720 14.4% 10.8% 3.7% 4,006,456 2,903,616 1,102,840 (47,790) (136,359) $35.40B 6,288,579 14.8% 14.0% 0.8% 1,394,409 1,281,627 112,782 (77,527) 5,503 $28.00C 856,302 9.1% 8.9% 0.1% 103,073 95,890 7,183 739 7,852 $23.00

28,691,601 14.35% 11.41% 2.93% 5,503,938 4,281,133 1,222,805 (124,578) (123,004)

Vacancy Rate Availability (SF) Net Absorption

Historical Trends

Class A Quarter Total RSF Direct Vacant Sublet Vacant Vacancy Absorption Rental Rates

2005/Q3 19,805,988 2,365,519 507,236 16.7% (41,960) $33.01

Q4 19,817,460 1,922,272 637,961 14.5% 157,926 $34.31

2006/Q1 19,817,460 1,773,127 314,449 12.9% 243,229 $34.75

Q2 19,890,190 1,731,564 337,550 10.5% 108,358 $34.75

Q3 19,895,019 1,557,068 292,971 10.4% 51,837 $36.40

Q4 19,895,019 1,505,161 289,094 9.3% 225,615 $37.00

2007/Q1 20,968,597 1,703,435 202,698 9.0% (3,396) $37.60

Q2 20,968,597 1,654,847 268,598 9.1% (121,277) $43.24

Q3 20,968,597 1,381,444 181,956 9.2% (17,312) $45.15

Q4 20,968,597 1,252,588 177,665 7.5% 83,823 $48.30

2008/Q1 21,482,945 1,294,006 131,722 6.6% 55,817 $48.30

Q2 21,482,945 1,430,829 153,364 7.4% (134,611) $48.30

Q3 21,482,945 1,525,829 477,404 9.3% (286,019) $45.30

Q4 21,482,945 2,075,292 563,406 12.3% (480,054) $42.20

2009/Q1 21,546,720 2,189,346 733,855 13.6% (254,346) $37.98

Q2 21,546,720 2,215,344 844,216 14.2% (136,359) $36.30

Q3 21,546,720 2,320,104 787,246 14.4% (47,790) $35.40 HISTORICAL VACANCY VS. LEASE RATES

1 Rates are Quoted as Full Service

9


NORTH FINANCIAL DISTRICT MARKET SUMMARY

BY THE NUMBERS

±29,776 Square feet was renewed by 24-Hour Fitness at 100 California Street. The renewal will keep the juggernaut fitness club at its current location for 5 years.

$35.40 Per Square foot (Full Service) for Class “A” space. This represents a 19.9% year-over-year decline in Class “A” rental rates.

14.4% Class “A” vacancy for the North Financial District submarket. The highest vacancy rate since 2005 for this submarket.

CLASS “A” HISTORICAL DIRECT VS. SUBLEASE VACANT SPACE

10


SOUTH FINANCIAL DISTRICT MARKET SUMMARY 3rd Quarter, 2009

Building Class Total RSF Overall Direct Sublet Overall Direct Sublet Current Quarter Q2 '09 Rental Rates1A 20,181,060 11.1% 9.9% 1.2% 3,065,812 2,600,366 465,446 145,018 (9,910) $35.30B 3,346,323 6.2% 5.9% 0.3% 406,956 390,092 16,864 29,810 (367) $28.00C 1,222,232 10.3% 10.1% 0.1% 130,302 120,258 10,044 (25,885) (14,965) $23.00

24,749,615 10.39% 9.34% 1.05% 3,603,070 3,110,716 492,354 148,943 (25,242)


Historical Trends

Class A Quarter Total RSF Direct Vacant Sublet Vacant Vacancy Absorption Rental Rates

Q3 20,123,913 1,810,178 562,883 11.8% 112,402 $32.53

Q4 19,772,060 1,934,028 477,212 12.2% (38,490) $33.40

2006/Q1 20,159,493 1,328,836 358,395 8.4% 63,342 $33.40

Q2 19,086,992 1,354,408 325,959 8.8% 41,720 $35.70

Q3 19,094,438 1,271,296 257,646 8.0% (70,444) $36.00

Q4 19,094,438 1,038,200 262,045 6.8% 228,697 $37.10

2007/Q1 19,128,276 991,788 160,721 6.0% 252,536 $42.67

Q2 19,128,276 998,881 142,012 6.0% 13,586 $43.40

Q3 19,128,276 1,157,348 92,021 6.5% 114,922 $47.60

Q4 19,128,276 1,294,077 83,682 7.2% (128,390) $47.60

2008/Q1 19,612,763 1,064,770 149,049 6.2% (32,660) $47.60

Q2 19,612,763 1,153,898 158,734 6.7% 37,426 $47.60

Q3 19,612,763 1,357,040 187,752 7.9% (73,457) $44.20

Q4 20,169,082 1,977,938 203,342 10.8% (410,583) $41.50

2009/Q1 20,181,060 2,089,038 284,973 11.8% (237,133) $37.35

Q2 20,181,060 2,086,629 297,292 11.8% (9,910) $36.20

Q3 20,181,060 1,990,618 248,285 11.1% 145,018 $35.30 HISTORICAL VACANCY VS. LEASE RATES


11


SOUTH FINANCIAL DISTRICT MARKET SUMMARY

BY THE NUMBERS

±35,427 Square feet was inked by Silicon Valley Bank at 555 Mission Street. The bank will move from its China Basin location at 185 Berry Street into Tishman Speyer’s new office tower upon lease commencement in February 2010

148,943 Square feet of positive net absorption for all building classes in the South Financial District. 11.1% overall vacancy rate in Q3 (includes sublease space and all building classes), a decline from Q2’s mark of 11.8%.

CLASS “A” HISTORICAL DIRECT VS. SUBLEASE VACANT SPACE

12


NORTH WATERFRONT/JACKSON SQUARE MARKET SUMMARY

BY THE NUMBERS

+11,683 Square foot lease was signed by E & M Electric Machinery, Inc., at 55 Francisco Street. 27,780 Square feet of positive net absorption for all building classes in the North Waterfront / Jackson Square submarket.

12.8% Class “A” vacancy for the North Waterfront / Jackson Square submarket, nearly a 1% decrease quarter-over-quarter.

3rd Quarter, 2009

Building Class Total RSF Overall Direct Sublet Overall Direct Sublet Current Quarter Q2 '09 Rental Rates1A 1,670,725 12.8% 11.7% 1.1% 290,404 236,744 53,660 14,448 (35,168) $30.70B 3,699,610 11.4% 9.5% 1.9% 661,503 543,413 118,090 (24,506) (20,034) $27.00C 1,470,261 6.0% 5.9% 0.1% 167,415 131,761 35,654 37,838 (60,144) $24.00

6,840,596 10.56% 9.26% 1.30% 1,119,322 911,918 207,404 27,780 (115,346)

Availability (SF)Vacancy Rate Net Absorption

CLASS “A” HISTORICAL VACANCY VS. LEASE RATES


13


VAN NESS/CIVIC CENTER MARKET SUMMARY

BY THE NUMBERS

649,563 Square feet of overall vacancy for the Van Ness / Civic Center submarket, a .82% increase quarter-over-quarter. 3,409 Square feet of positive Class “A” absorption in the Van Ness / Civic Center submarket. $29.27 Per Square foot (Full Service) for Class “A” space, a decline of 21.3% year-over-year.

3rd Quarter, 2009

Building Class Total RSF Overall Direct Sublet Overall Direct Sublet Current Quarter Q2 '09 Rental Rates1A 2,105,547 3.7% 3.6% 0.1% 454,382 452,814 1,568 3,409 (5,680) $29.27B 2,759,197 17.0% 14.2% 2.8% 717,942 638,645 79,297 (30,402) (29,631) $25.00C 1,953,158 5.2% 4.9% 0.3% 118,543 112,543 6,000 (231) (4,018) $23.00

6,817,902 9.53% 8.26% 1.27% 1,290,867 1,204,002 86,865 (27,224) (39,329)




14


UNION SQUARE MARKET SUMMARY

BY THE NUMBERS

$30.00 Per Square foot (Full Service) for Class “A” space. 11.45% Overall vacancy for the Union Square submarket, up from 9.4% in the second quarter of 2009.

(119,517) Square feet of negative absorption for all classes of space in the Union Square submarket.

3rd Quarter, 2009

Building Class Total RSF Overall Direct Sublet Overall Direct Sublet Current Quarter Q2 '09 Rental Rates1A 181,715 5.2% 3.1% 2.1% 9,428 5,656 3,772 0 (3,772) $30.00B 3,000,287 8.0% 7.8% 0.3% 361,529 327,058 34,471 (2,761) 3,672 $28.00C 2,643,155 15.7% 15.4% 0.3% 452,627 431,369 21,258 (116,756) (26,724) $24.00

5,825,157 11.45% 11.10% 0.35% 823,584 764,083 59,501 (119,517) (26,824)




THIRD QUARTER

Lic #00832933

15


SOMA MARKET SUMMARY

By: Riccardo Gale, Marc Trovato, and Sam Brownell

The 3rd Quarter of 2009 in SOMA was a bit of a dichotomy. Tour and leasing activity was strong, but a flood of new availability resulted in significant negative absorption. Total availability increased from 27% to 31%, while average asking rates fell from $27.80 to $27.69 per Rentable Square Foot per Year (RSF). The strong negative absorption this quarter was the result Wells Fargo’s exit of 155 5th Street, which brought 349,000 of new availability to market. Were it not for 155 5th Street, absorption would have been positive for the quarter. Several large tenants touring the market generated considerable buzz this quarter, including Zynga for approximately 137,000 RSF (in negotiations at 500 Terry Francois in Mission Bay), Ubisoft for 50,000 RSF, Twitter for 30,000 RSF (in negotiations at 795 Folsom), and Carat Interactive (in negotiations for 30,000 RSF at 875 Howard). Yelp, Pure Digital and FiberTower continue to tour the market as well. A number of larger leases were completed this quarter, including Brown and Toland (renewal), Cisco (renewal), and Zynga (expansion). The availability of high-quality creative space has increased, with new options available for occupancy in 2009. Some of the more

desirable available spaces in the market include:

410 Townsend Street – 30,000 RSF of fully furnished brick & timber space divisible to 10,000 RSF

625 Second Street – 32,000 RSF of creative brick & timber space divisible to 14,000 RSF

Investment sales activity continued to move along at a snails pace. However, speculation of several, larger scale, potential foreclosures has started to surface. It is expected that Q4 2009 and 2010 will see an up tick in activity, driven by troubled landlords and further pressure on banks and lenders to mark assets to current market values. In conclusion, the SOMA market parameters were again negative this quarter, but the rate of deterioration continued to slow. Leasing volume was respectable, and tour activity was strong. Landlords of good quality creative space continued to decrease their rental expectations and entertain short-term commitments from the tenant community. Landlords were increasingly open to “blend and extend” proposals from tenants hoping to reduce their current rent obligation in exchange for extended lease term. SOMA’s investment market continued to stall, as both buyers and sellers were reluctant to make deals. Despite the struggling economy, lower

rent expectations and increased sublease and direct availabilities are creating attractive leasing opportunities for SOMA tenants.

OVERALL RENTS VS. VACANCY 2Q ’07 TO 3Q ‘09

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SOMA MARKET SUMMARY

3rd Quarter, 2009

Submarket # of Buildings Total Sq. Ft. Available Sq. Ft. Vacancy Rate Average Asking Rent Absorption Sq. Ft.

South Beach 19 2,241,187 368,011 16.42% $24.52 1,811

Multimedia Gulch 39 3,999,008 1,031,946 25.81% $26.60 124,015

Yerba Buena / South of Market 19 2,561,807 1,274,742 49.76% $27.97 (410,822)

Potrero Hill / Inner Mission 14 1,258,838 387,172 30.76% $23.58 (132,039)

Mission Bay 4 588,405 273,272 46.44% $38.50 0

Totals: 95 10,649,245 3,335,143 31.32% $27.69 (417,035) *Rates are based on a weighted average for available space only. SOMA Top Ten Buildings

Building Stories

BuildingSq. Ft. Total

1Rates Direct Avg.

Direct Sq. Ft.

Sublease Sq. Ft.

Total Avail. Sq. Ft.

Avail. TotalPercent

185 Berry Street 6 939,549 $32.00* 55,097 3,271 58,368 6.2%

475 Brannan Street 4 255,000 $36.00 0 0 0 0.0%

444 DeHaro Street 2 152,000 $28.00 17,288 0 17,288 11.4%

160 King Street 10 167,983 $31.00 6,300 66,086 72,386 43.1%

350 Rhode Island St. South 4 139,509 $29.00 34,841 0 34,841 25.0%

501 2nd Street 7 207,809 $30.00 6,626 32,040 38,666 18.6%

625 2nd Street 4 134,447 $28.00 31,909 16,000 47,909 35.6%

139 Townsend Street 5 57,782 $29.00 32,242 0 32,242 55.8%

410 Townsend Street 4 80,000 $24.00 30,029 0 30,029 37.5%

650 Townsend Street 6 710,400 $23.00 408,333 16,865 425,198 59.9% 1 Rates are Quoted as Full Service Largest Continuous Spaces

Address Square Feet Available

370 3rd Street 365,584

155 5th Street 349,286

650 Townsend Street 313,376

500 Terry Francois Blvd. 268,245

875 Howard Street 190,000

185 Berry Street 175,000

160 King Street 56,963

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SOMA MARKET SUMMARY

Top Leases

Tenant Lessor Square Feet Address

Brown and Toland ( R) American Assets 51,871 160 King Street

CISCO ( E ) Rreef 37,000 185 Berry Street

Zynga Apllo Real Estate Advisors 20,021 444 DeHaro Street

Mark Monitor ( R ) ( C ) Kennedy Associates 19,313 303 2nd Street

VideoEgg ( R ) The Mariani Trust 17,000 180 Townsend Street

Cloudmark ( R ) ( C ) Byer Properties 15,500 128 King Street

Outcast Communications ( R ) SFI Real Estate Holdings 14,000 123 Townsend Street

EngineYard ( S ) ( C ) Yahoo! 14,465 500 3rd Street Top Pending Leases

Tenant Lessor Square Feet Address

Zynga CBRE Investrors 137,000 500 Terry Francois Blvd.

Twitter ( S ) AOL/Bebo 30,000 795 Folsom Street

Carat Interactive TMG Partners 30,000 875 Howard Street

StumbleUpon Watson Breevast 20,000 139 Townsend Street

Zoom Systems ( S ) Macy's 20,000 22 4th Street

JustinTV Watson Breevast 10,000 139 Townsend Street Top Building Sales *No significant SOMA Sale Transactions this Quarter. SOMA Top Picks

Location Floor(s) Minimum Size Maximum Size Asking Rent Comments

410 Townsend Street Various 10,000 20,000 $25.00 Fully Furnished Creative Brick & Timber Office Space

575 Florida Street Various 9,000 75,000 $21.00 Creative, High Ceiling Space. Potrero Location.

625 2nd Street Ground 31,909 6,734 $28.00 Creative Brick & Timber. Prime Location.

139 Townsend Street Various 11,000 33,000 $30.00 High Ceiling Brick & Timber Office Space. 3 Full Floors

( S ) = Sublease

( R ) = Renewal

( E ) = Expansion


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AGENT ROSTER LEASING Jonathan Allen 415.445.5138 [email protected]

Karl Baldauf 415.445.5117 [email protected]

John Cashin 415.445.5112 [email protected]

Donnette Clarens 415.445.5120 [email protected]

Bart O’Connor 415.445.5102 [email protected]

Will Scovill* 415.445.5134 [email protected]

Nick Slonek 415.445.5100 [email protected]

Marc Trovato 415.445.5118 [email protected]

INVESTMENTS Samuel Brownell 415.445.5113 [email protected]

Kyle Ladewig 415.445.5103 [email protected]

Rita Meehan 415.445.5135 [email protected]

MARKET RESEARCH El Beh 415.445.5114 [email protected]

Ryan Carmichael 415.445.5133 [email protected]

Kevin Delehanty 415.445.5132 [email protected]

Shannon Dolan 415.445.5105 [email protected]

Riccardo Gale 415.445.5119 [email protected]

Raquel Ledesma 415.445.5136 [email protected]

Jim Lucas 415.445.5106 [email protected]

Melinda Miyagishima 415.445.5108 [email protected]

Todd Motoyoshi 415.445.5122 [email protected]

John Norton 415.445.5137 [email protected]

INDUSTRIAL LEASING Bruce Carter 415.445.5142 [email protected]

RETAIL LEASING Tracy Chiao 415.445.5140 [email protected]

Erika Elliott 415.445.5124 [email protected]

Marissa Miller 415.445.5139 [email protected]

Tom Neuburger 415.445.5129 [email protected]

Rachel Pagan 415.445.5121 [email protected]

Julie Taylor 415.445.5128 [email protected]

C&C CAPITAL Matthew Gum 415.445.5116 [email protected]

Brad Zampa 415.445.5115 [email protected]

OFFICE ADMIN. BK Masterson 415.445.5150 [email protected]

* Indicates Life Science Specialist

19


C&C San Francisco Office Q3 2009

Documents

san francisco office

union square submarket

historical trends class

san francisco

office tower

current location

address sq

building sq