Michael J. Tobin - Pacific Union Commercial Real Estate Brokerage

Rent Analysis

Average Asking Rental Rates as of September 30, 2008

District Q3 2008 Q2 2008 % Change

CBD $49.37 $50.33 -1.3%

CBD Class A $52.76 $53.97 -2.2%

SOMA (CBD) $50.04 $50.34 -0.6%

SOMA (CBD) Class A $52.50 $52.69 -0.4%

SOMA (M/M Gulch) $41.45 $39.72 +4.4%

SOMA (M/M Gulch) Class A $44.48 $42.17 + 5.5%

CBD = Central Business District SOMA = South of Market All Rents "Full Service"

Overall Vacancy Rates (Direct and Sublease space)

District Q3 2008 Q2 2008 % Change

CBD 9.9% 8.8% +1.1%

Non CBD 11.5% 11.7% -0.2%

Direct Vacancy Rates (Direct space only)

District	Q3 2008	Q2 2008	% Change
CBD	7.9%	7.3%	+0.6%
CBD Class A	7.3%	6.7%	+0.6%
SOMA (CBD)	7.3%	6.4%	+0.9%
SOMA (CBD) Class A	6.9%	6.0%	+0.9%
SOMA (M/M Gulch)	14.7%	12.7%	+2.0%
SOMA (M/M Gulch) Class A	18.0%	17.6%	+0.4%

Michael J. Tobin

601 California Street, Second Floor, San Francisco, CA 94108
(415) 834-3553 (415) 834-1661 fax email