Costar DC Office Market Report 2010

The CoStar
Office Report
Y E A R - E N D 2 0 1 0
Washington, D.C. Office Market

YEAR-END 2010 – WASHINGTON, D.C.

Table of Contents
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A
Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B
Terms & Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C
Market Highlights & Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
CoStar Markets & Submarkets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Employment & Tenant Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Employment & Unemployment Analysis
Tenant Profiles
Inventory & Development Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Construction Activity Map
Inventory & Development Analysis
Select Top Deliveries
Select Top Under Construction Properties
Figures at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Figures at a Glance by Class & Market
Figures at a Glance by Class & Submarket
Figures at a Glance Grouped by CBD vs Suburban
Historical Figures at a Glance
Leasing Activity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Leasing Activity Map
Leasing Activity Analysis
Select Top Lease Transactions
Sales Activity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Sales Activity Analysis
Select Top Sales Transactions
Analysis of Individual CoStar Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Select Same Building Sales
Select Land Sales
Alexandria/I-395 Area Market
Bethesda/Chevy Chase Market
Capitol Hill Area Market
Downtown DC Market
Dulles Corridor Market
E Prince Georges County Market
East Falls Church Market
Frederick Market
Georgetown/Uptown Market
Greater Fairfax County Market
I-270 Corridor Market
Leesburg/Route 7 Corridor Market
Manassas/Route 29/I-66 Market
N Prince Georges County Market
Northeast/Southeast Market
R-B Corridor Market
S Prince Georges County Market
SE Fairfax County Market
SE Montgomery County Market
Winchester City Market
Woodbridge/I-95 Corridor Market
©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT A

WASHINGTON, D.C. – YEAR-END 2010
Methodology
The CoStar Office Report, unless specifically stated otherwise, calculates office statistics using CoStar
Group’s entire database of existing and under construction office buildings in each metropolitan area.
Included are office, office condominium, office loft, office medical, all classes and all sizes, and both
multi-tenant and single-tenant buildings, including owner-occupied buildings. CoStar Group's national
database includes approximately 71.7 billion square feet of coverage in 3 million properties. All rental
rates reported in the CoStar Office Report have been converted to a Full Service equivalent rental rate.
For information on subscribing to CoStar’s other products and services, please contact us at
1-877-7COSTAR, or visit our web site at www.costar.com
© Copyright 2010 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of the
information contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness or
completeness of the information. The publication is provided ‘as is’ and CoStar expressly disclaims any guarantees, representations or
warranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.
CoStar Group, Inc.

1331 L ST NW • Washington, DC USA 20005 • (800) 204-5960 • www.costar.com • NASDAQ: CSGP
B THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

Terms & Definitions

Availability Rate: The ratio of available space to total rentable Deliveries: Buildings that complete construction during a specified
space, calculated by dividing the total available square feet by the period of time. In order for space to be considered delivered, a
total rentable square feet. certificate of occupancy must have been issued for the property.
Available Space: The total amount of space that is currently Delivery Date: The date a building completes construction and
being marketed as available for lease in a given time period. It receives a certificate of occupancy.
includes any space that is available, regardless of whether the Developer: The company, entity or individual that transforms raw
space is vacant, occupied, available for sublease, or available at land to improved property by use of labor, capital and entrepre-
a future date. neurial efforts.
Build-to-Suit: A term describing a particular property, developed Direct Space: Space that is being offered for lease directly from
specifically for a certain tenant to occupy, with structural features, the landlord or owner of a building, as opposed to space being
systems, or improvement work designed specifically for the needs offered in a building by another tenant (or broker of a tenant)
of that tenant. A build-to-suit can be leased or owned by the ten- trying to sublet a space that has already been leased.
ant. In a leased build-to-suit, a tenant will usually have a long
term lease on the space. Existing Inventory: The square footage of buildings that have
received a certificate of occupancy and are able to be occupied
Buyer: The individual, group, company, or entity that has pur- by tenants. It does not include space in buildings that are either
chased a commercial real estate asset. planned, under construction or under renovation.
Cap Rate: Short for capitalization rate. The Cap Rate is a calcula- Flex Building: A type of building designed to be versatile, which
tion that reflects the relationship between one year’s net operating may be used in combination with office (corporate headquarters),
income and the current market value of a particular property. research and development, quasi-retail sales, and including but
The Cap Rate is calculated by dividing the annual net operating not limited to industrial, warehouse, and distribution uses. A typi-
income by the sales price (or asking sales price). cal flex building will be one or two stories with at least half of the
CBD: Abbreviation for Central Business District. (See also: rentable area being used as office space, have ceiling heights of 16
Central Business District) feet or less, and have some type of drive-in door, even though the
door may be glassed in or sealed off.
Central Business District: The designations of Central Business
District (CBD) and Suburban refer to a particular geographic area Full Service Rental Rate: Rental rates that include all operating
within a metropolitan statistical area (MSA) describing the level expenses such as utilities, electricity, janitorial services, taxes and
of real estate development found there. The CBD is characterized insurance.
by a high density, well organized core within the largest city of a Gross Absorption: The total change in occupied space over a
given MSA. given period of time, counting space that is occupied but not
Class A: A classification used to describe buildings that generally space that is vacated by tenants. Gross absorption differs from
qualify as extremely desirable investment-grade properties and leasing Activity, which is the sum of all space leased over a certain
command the highest rents or sale prices compared to other period of time. Unless otherwise noted Gross Absorption includes
buildings in the same market. Such buildings are well located direct and sublease space.
and provide efficient tenant layouts as well as high quality, and in Growth in Inventory: The change in size of the existing square
some buildings, one-of-a-kind floor plans. They can be an archi- footage in a given area over a given period of time, generally due
tectural or historical landmark designed by prominent architects. to the construction of new buildings.
These buildings contain a modern mechanical system, and have
above-average maintenance and management as well as the best Industrial Building: A type of building adapted for such uses as
quality materials and workmanship in their trim and interior fit- the assemblage, processing, and/or manufacturing of products
tings. They are generally the most attractive and eagerly sought from raw materials or fabricated parts. Additional uses include
by investors willing to pay a premium for quality. warehousing, distribution, and maintenance facilities. The pri-
mary purpose of the space is for storing, producing, assembling,
Class B: A classification used to describe buildings that generally or distributing product.
qualify as a more speculative investment, and as such, command
lower rents or sale prices compared to Class A properties. Such Landlord Rep: (Landlord Representative) In a typical lease trans-
buildings offer utilitarian space without special attractions, and action between an owner/landlord and tenant, the broker that
have ordinary design, if new or fairly new; good to excellent represents the interests of the owner/landlord is referred to as the
design if an older non-landmark building. These buildings typical- Landlord Rep.
ly have average to good maintenance, management and tenants. Leased Space: All the space that has a financial lease obligation.
They are less appealing to tenants than Class A properties, and It includes all leased space, regardless of whether the space is
may be deficient in a number of respects including floor plans, currently occupied by a tenant. Leased space also includes space
condition and facilities. They lack prestige and must depend being offered for sublease.
chiefly on a lower price to attract tenants and investors.
Leasing Activity: The volume of square footage that is commit-
Class C: A classification used to describe buildings that gener- ted to and signed under a lease obligation for a specific building
ally qualify as no-frills, older buildings that offer basic space and or market in a given period of time. It includes direct leases,
command lower rents or sale prices compared to other buildings subleases and renewals of existing leases. It also includes any
in the same market. Such buildings typically have below-average pre-leasing activity in planned, under construction, or under
maintenance and management, and could have mixed or low renovation buildings.
tenant prestige, inferior elevators, and/or mechanical/electrical
systems. These buildings lack prestige and must depend chiefly Market: Geographic boundaries that serve to delineate core areas
on a lower price to attract tenants and investors. that are competitive with each other and constitute a generally
accepted primary competitive set of areas. Markets are building-
Construction Starts: Buildings that began construction during a type specific, and are non-overlapping contiguous geographic
specific period of time. (See also: Deliveries) designations having a cumulative sum that matches the boundar-
Contiguous Blocks of Space: Space within a building that is, or is ies of the entire Region (See also: Region). Markets can be further
able to be joined together into a single contiguous space. subdivided into Submarkets. (See also: Submarkets)
©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT C

Multi-Tenant: Buildings that house more than one tenant at a Seller: The individual, group, company, or entity that sells a par-
given time. Usually, multi-tenant buildings were designed and ticular commercial real estate asset.
built to accommodate many different floor plans and designs for SF: Abbreviation for Square Feet.
different tenant needs. (See also: Tenancy).
Single-Tenant: Buildings that are occupied, or intended to be
Net Absorption: The net change in occupied space over a given occupied by a single tenant. (See also: Build-to-suit and Tenancy)
period of time. Unless otherwise noted Net Absorption includes
direct and sublease space. Sublease Space: Space that has been leased by a tenant and is
being offered for lease back to the market by the tenant with
Net Rental Rate: A rental rate that excludes certain expenses that the lease obligation. Sublease space is sometimes referred to as
a tenant could incur in occupying office space. Such expenses sublet space.
are expected to be paid directly by the tenant and may include
janitorial costs, electricity, utilities, taxes, insurance and other Submarkets: Specific geographic boundaries that serve to delin-
related costs. eate a core group of buildings that are competitive with each
other and constitute a generally accepted primary competitive
New Space: Sometimes called first generation space, refers to set, or peer group. Submarkets are building type specific (office,
space that has never been occupied and/or leased by a tenant. industrial, retail, etc.), with distinct boundaries dependent on
Occupied Space: Space that is physically occupied by a tenant. different factors relevant to each building type. Submarkets are
It does not include leased space that is not currently occupied non-overlapping, contiguous geographic designations having a
by a tenant. cumulative sum that matches the boundaries of the Market they
are located within (See also: Market).
Office Building: A type of commercial building used exclusively
or primarily for office use (business), as opposed to manufactur- Suburban: The Suburban and Central Business District (CBD)
ing, warehousing, or other uses. Office buildings may sometimes designations refer to a particular geographic area within a metro-
have other associated uses within part of the building, i.e., retail politan statistical area (MSA). Suburban is defined as including all
sales, financial, or restaurant, usually on the ground floor. office inventory not located in the CBD. (See also: CBD)
Owner: The company, entity, or individual that holds title on a Tenancy: A term used to indicate whether or not a building is
given building or property. occupied by multiple tenants (See also: Multi-tenant) or a single
tenant. (See also: Single-tenant)
Planned/Proposed: The status of a building that has been
announced for future development but not yet started Tenant Rep: Tenant Rep stands for Tenant Representative. In a
construction. typical lease transaction between an owner/landlord and tenant,
the broker that represents the interests of the tenant is referred to
Preleased Space: The amount of space in a building that has been
as a Tenant Rep.
leased prior to its construction completion date, or certificate of
occupancy date. Time On Market: A measure of how long a currently available
space has been marketed for lease, regardless of whether it is
Price/SF: Calculated by dividing the price of a building (either
vacant or occupied.
sales price or asking sales price) by the Rentable Building Area
(RBA). Under Construction: The status of a building that is in the process
of being developed, assembled, built or constructed. A building is
Property Manager: The company and/or person responsible for
considered to be under construction after it has begun construc-
the day-to-day operations of a building, such as cleaning, trash
tion and until it receives a certificate of occupancy.
removal, etc. The property manager also makes sure that the vari-
ous systems within the building, such as the elevators, HVAC, and Vacancy Rate: A measurement expressed as a percentage of the
electrical systems, are functioning properly. total amount of physically vacant space divided by the total
amount of existing inventory. Under construction space generally
Quoted Rental Rate: The asking rate per square foot for a par-
is not included in vacancy calculations.
ticular building or unit of space by a broker or property owner.
Quoted rental rates may differ from the actual rates paid by Vacant Space: Space that is not currently occupied by a tenant,
tenants following the negotiation of all terms and conditions in regardless of any lease obligation that may be on the space.
a specific lease. Vacant space could be space that is either available or not avail-
RBA: Abbreviation for Rentable Building Area. (See also: able. For example, sublease space that is currently being paid for
by a tenant but not occupied by that tenant, would be considered
Rentable Building Area)
vacant space. Likewise, space that has been leased but not yet
Region: Core areas containing a large population nucleus, that occupied because of finish work being done, would also be con-
together with adjacent communities have a high degree of eco- sidered vacant space.
nomic and social integration. Regions are further divided into
Weighted Average Rental Rate: Rental rates that are calculated by
market areas, called Markets. (See also: Markets)
factoring in, or weighting, the square footage associated with each
Relet Space: Sometimes called second generation or direct space, particular rental rate. This has the effect of causing rental rates
refers to existing space that has previously been occupied by on larger spaces to affect the average more than that of smaller
another tenant. spaces. The weighted average rental rate is calculated by taking
Rentable Building Area: (RBA) The total square footage of a the ratio of the square footage associated with the rental rate on
building that can be occupied by, or assigned to a tenant for the each individual available space to the square footage associated
purpose of determining a tenant’s rental obligation. Generally with rental rates on all available spaces, multiplying the rental rate
RBA includes a percentage of common areas including all hall- by that ratio, and then adding together all the resulting numbers.
ways, main lobbies, bathrooms, and telephone closets. Unless specifically specified otherwise, rental rate averages include
both Direct and Sublet available spaces.
Rental Rates: The annual costs of occupancy for a particular
space quoted on a per square foot basis. Year Built: The year in which a building completed construction
and was issued a certificate of occupancy.
Sales Price: The total dollar amount paid for a particular property
at a particular point in time. YTD: Abbreviation for Year-to-Date. Describes statistics that are
cumulative from the beginning of a calendar year through what-
Sales Volume: The sum of sales prices for a given group of build- ever time period is being studied.
ings in a given time period.
D THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.


OVERVIEW
Washington’s Vacancy Decreases to 12.9%

Net Absorption Positive 1,552,152 SF in the Quarter
T
he Washington Office market ended the fourth quarter to positive 1,247,535 square feet in the third quarter 2010, posi-
2010 with a vacancy rate of 12.9%. The vacancy rate tive 2,045,320 in the second quarter 2010 and positive 900,465
was down over the previous quarter, with net absorp- in the first quarter 2010.
tion totaling positive 1,552,152 square feet in the fourth quarter. The Class-B office market recorded net absorption of nega-
Vacant sublease space decreased, ending the quarter at 4,492,747 tive (86,549) square feet in the fourth quarter 2010, compared to
square feet. The average asking rental rate ended the fourth quar- positive 175,481 square feet in the third quarter 2010, negative
ter at $33.72, a decrease over the previous quarter. A total of two (354,614) in the second quarter 2010 and positive 74,175 in the
buildings, totaling 41,000 square feet, delivered to the market in first quarter 2010.
the quarter, with 3,409,282 square feet still under construction. The Class-C office market recorded net absorption of posi-
tive 66,940 square feet in the fourth quarter 2010 compared to
Absorption
negative (155,345) square feet in the third quarter 2010, negative
Net absorption for the overall Washington office market was
(88,412) in the second quarter 2010 and positive 11,545 in the
positive 1,552,152 square feet in the fourth quarter 2010. That
first quarter 2010.
compares to positive 1,267,671 square feet in the third quarter
Net absorption for Washington’s central business district
2010, positive 1,602,294 square feet in the second quarter 2010
was positive 799,472 square feet in the fourth quarter 2010.
and positive 986,185 square feet in the first quarter 2010.
That compares to positive 624,623 square feet in the third quarter
Tenants moving out of large blocks of space in 2010 include:
2010, positive 864,863 in the second quarter 2010 and positive
Federal Trade Commission moving out of 364,469 square feet at
837,623 in the first quarter 2010.
601 New Jersey Ave NW; Northrop Grumman Mission Systems
Net absorption for the suburban markets was positive
moving out of 312,672 square feet at One Reston Overlook; and
752,680 square feet in the fourth quarter 2010. That compares
Dickstein Shapiro LLP moving out of 304,200 square feet at
to positive 643,048 square feet in third quarter 2010, positive
International Square 3.
737,431 in the second quarter 2010, and positive 148,562 in the
Tenants moving into large blocks of space in 2010 include:
first quarter 2010.
The United States Department of Justice moving into 579,776
square feet at Two Constitution Square; U.S. Department of Vacancy
Agriculture moving into 332,665 square feet at Patriots Plaza The office vacancy rate in the Washington market area
III; and General Services Administration/Region 11 moving into decreased to 12.9% at the end of the fourth quarter 2010. The
330,000 square feet at Constitution Square. vacancy rate was 13.2% at the end of the third quarter 2010,
The Class-A office market recorded net absorption of posi- 13.4% at the end of the second quarter 2010 and 13.3% at the
tive 1,571,761 square feet in the fourth quarter 2010, compared end of the first quarter 2010.
Vacancy Rates by Class 1993-2010
A B C Total Market
18%
16%
14%
12%
Vacancy Rate
10%
8%
6%
4%
2%
0%
1993 1993 1994 1995 1996 1996 1997 1998 1999 1999 2000 2001 2002 2002 2003 2004 2005 2005 2006 2007 2008 2008 2009 2010
1q 4q 3q 2q 1q 4q 3q 2q 1q 4q 3q 2q 1q 4q 3q 2q 1q 4q 3q 2q 1q 4q 3q 2q
Source: CoStar Property®
Absorption & Deliveries

©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT
U.S. Vacancy Comparison 1
Past 10 Quarters Past 10 Quarters


OVERVIEW
Class-A projects reported a vacancy rate of 14.9% at the end fourth quarter 2010, from 4,946,318 square feet at the end of the
of the fourth quarter 2010, 15.5% at the end of the third quarter third quarter 2010. There was 5,339,657 square feet vacant at
2010, 15.9% at the end of the second quarter 2010 and 16.0% the end of the second quarter 2010 and 5,563,958 square feet at
at the end of the first quarter 2010. the end of the first quarter 2010.
Class-B projects reported a vacancy rate of 11.0% at the end Washington’s Class-A projects reported vacant sublease
of the fourth quarter 2010, 10.9% at the end of the third quarter space of 3,477,108 square feet at the end of fourth quarter 2010,
2010, 11.0% at the end of the second quarter 2010 and 10.8% down from the 3,824,656 square feet reported at the end of the
at the end of the first quarter 2010. third quarter 2010. There was 4,001,129 square feet of sublease
Class-C projects reported a vacancy rate of 7.8% at the end space vacant at the end of the second quarter 2010 and 4,209,996
of the fourth quarter 2010, 8.0% at the end of third quarter 2010, square feet at the end of the first quarter 2010.
7.6% at the end of the second quarter 2010 and 7.5% at the end Class-B projects reported vacant sublease space of 971,435
of the first quarter 2010. square feet at the end of the fourth quarter 2010, down from
The overall vacancy rate in Washington’s central business the 1,061,444 square feet reported at the end of the third quar-
district at the end of the fourth quarter 2010 decreased to 11.0%. ter 2010. At the end of the second quarter 2010 there were
The vacancy rate was 11.5% at the end of the third quarter 2010, 1,252,595 square feet, and at the end of the first quarter 2010
11.8% at the end of the second quarter 2010 and 11.4% at the there was 1,266,474 square feet vacant.
end of the first quarter 2010. Class-C projects reported decreased vacant sublease space
The vacancy rate in the suburban markets decreased to from the third quarter 2010 to the fourth quarter 2010. Sublease
B C
13.7% in the fourth quarter 2010. The vacancy rate was 14.0%
Total Market
vacancy went from 60,218 square feet to 44,204 square feet dur-
at the end of the third quarter 2010, 14.1% at the end of the ing that time. There was 85,933 square feet at the end of the
second quarter 2010 and 14.2% at the end of the first quarter second quarter 2010 and 87,488 square feet at the end of the first
2010. quarter 2010.
Sublease vacancy in Washington’s central business district
Largest Lease Signings
stood at 1,528,383 square feet at the end of the fourth quarter
The largest lease signings occurring in 2010 included:
2010. It was 1,574,815 square feet at the end of the third quarter
the 1,000,000-square-foot lease signed by Security Exchange
2010, 1,808,099 square feet at the end of the second quarter 2010
Commission at Constitution Center in the Capitol Hill Area
and 1,675,651 square feet at the end of the first quarter 2010.
market; the 801,550-square-foot deal signed by U.S. Department
Sublease vacancy in the suburban markets ended the fourth
Of Health and Human Services at 5600 Fishers Lane in the I-
quarter 2010 at 2,964,364 square feet. At the end of the third
270 Corridor market; and the 655,001-square-foot lease signed
quarter 2010 sublease vacancy was 3,371,503 square feet, was
by Department of Defense Medical Command at Melpar Office
3,531,558 square feet at the end of the second quarter 2010 and
Complex in the Greater Fairfax County market.
2001 2002 2002 2003 2004 2005 2005 2006 2007 2008 2008 2009 2010
was 3,888,307 square feet at the end of the first quarter 2010.
2q 1qSublease
4q 3qVacancy
2q 1q 4q 3q 2q 1q 4q 3q 2q
Rental Rates
The amount of vacant sublease space in the Washington
The average quoted asking rental rate for available office
market decreased to 4,492,747 square feet by the end of the
space, all classes, was $33.72 per square foot per year at the end
U.S. Vacancy Comparison of the fourth quarter 2010 in the Washington market area. This
Past 10 Quarters
represented a 0.6% decrease in quoted rental rates from the end
of the third quarter 2010, when rents were reported at $33.94
Washington, D.C. United States
16.0%
per square foot.
The average quoted rate within the Class-A sector was
14.0%
$37.88 at the end of the fourth quarter 2010, while Class-B rates
12.0%
stood at $27.58, and Class-C rates at $24.46. At the end of the
third quarter 2010, Class-A rates were $38.21 per square foot,
Vacancy Rate
10.0%
8.0% Class-B rates were $27.49, and Class-C rates were $24.06.
6.0%
The average quoted asking rental rate in Washington’s CBD
was $48.62 at the end of the fourth quarter 2010, and $28.05
4.0%
in the suburban markets. In the third quarter 2010, quoted rates
2.0% were $48.43 in the CBD and $27.84 in the suburbs.
0.0%
2008 2008 2009 2009 2009 2009 2010 2010 2010 2010
Deliveries and Construction
3q 4q 1q 2q 3q 4q 1q 2q 3q 4q During the fourth quarter 2010, two buildings totaling
Source: CoStar Property•
2 THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

4%
2%
0% YEAR-END 2010 – WASHINGTON, D.C.

1993 1993 1994 1995 1996 1996 1997 1998 1999 1999 2000 2001
Washington, D.C. Office Market 1q 4q 3q 2q 1q 4q 3q 2q 1q 4q 3q 2q
OVERVIEW Source: CoStar Property®
41,000 square feet were completed in the Washington market Absorption & Deliveries
area. This compares to four buildings totaling 589,536 square Past 10 Quarters
feet that were completed in the third quarter 2010, nine buildings
Net Absorption Deliveries
totaling 2,187,656 square feet completed in the second quarter 3.5 3.20
2010 and 1,552,487 square feet in 10 buildings completed in the 3.0
first quarter 2010. 2.30
2.5 2.19
There were 3,409,282 square feet of office space under con-
2.0
struction at the end of the fourth quarter 2010. 1.64 1.55 1.60
Millions SF
1.52 1.55
1.5 1.27
Some of the notable 2010 deliveries include: Two 1.09 1.05 0.99
0.96
1.0
Constitution Square, a 589,088-square-foot facility that deliv- 0.59
ered 100% occupied in second quarter 2010; and Air and Space 0.5
0.04 0.04
Museum Parkway, a 525,000-square-foot building that delivered 0.0

(0.01)
100% occupied in second quarter 2010. (0.5) (0.26)
(0.46)
The largest projects underway at the end of fourth quarter (1.0) (0.74)
2010 were Square 54, a 432,900-square-foot building with 71% 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010
3q 4q 1q 2q 3q 4q 1q 2q 3q 4q
of its space pre-leased, and 1015 Half St SE, a 414,029-square-
Source: CoStar Property•
foot facility that is completely available.
footage in the second quarter was 3,733,271 square feet for an
Inventory average price per square foot of $384.11.
Total office inventory in the Washington market area Total office building sales activity in 2010 was up compared
amounted to 452,236,411 square feet in 9,533 buildings as of to 2009. In the first nine months of 2010, the market saw 58
the end of the fourth quarter 2010. The Class-A office sector con- office sales transactions with a total volume of $2,535,470,327.
sisted of 246,492,839 square feet in 1,351 projects. There were The price per square foot averaged $308.76. In the same first nine
4,524 Class-B buildings totaling 168,010,360 square feet, and the months of 2009, the market posted 34 transactions with a total
Class-C sector consisted of 37,733,212 square feet in 3,658 build- volume of $1,410,688,666. The price per square foot averaged
ings. Within the Office market there were 208 owner-occupied $311.78.
buildings accounting for 19,307,169 square feet of office space. Cap rates have been lower in 2010, averaging 7.01% com-
pared to the same period in 2009 when they averaged 8.33%.
Sales Activity
One of the largest transactions that has occurred within the
Tallying office building sales of 15,000 square feet or larger,
last four quarters in the Washington market is the sale of Two
Washington office sales figures fell during the third quarter 2010
Constitution Square in Washington. This 589,088-square-foot
in terms of dollar volume compared to the second quarter of
office building sold for $305,000,000, or $517.75 per square
2010.
foot. The property sold on 6/24/2010, at a 6.30% cap rate.
In the third quarter, 18 office transactions closed with a total
volume of $727,147,433. The 18 buildings totaled 2,676,648
square feet and the average price per square foot equated to Reports compiled by: Robert Hartley CoStar Senior Research Manager.
$271.66 per square foot. That compares to 24 transactions total-
ing $1,433,976,609 in the second quarter 2010. The total square
©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 3


MARKETS
CoStar Markets & Submarkets

In analyzing metropolitan areas in the U.S., CoStar has developed geographic designations to help group properties together, called
Regions, Markets and Submarkets. Regions are the equivalent of metropolitan areas, or areas containing a large population nucleus,
that together with adjacent communities have a high degree of economic and social integration. Regions are then divided into
Markets, which are core areas within a metropolitan area that are known to be competitive with each other in terms of attracting
and keeping tenants. Markets are then further subdivided into smaller units called Submarkets, which serve to delineate a core group
of buildings that are competitive with each other and constitute a generally accepted competitive set, or peer group.
Markets Submarkets
Alexandria/I-395 Area Crystal City Eisenhower Ave Corridor I-395 Corridor Old Town Alexandria
Pentagon City
Bethesda/Chevy Chase Bethesda/Chevy Chase
Capitol Hill Area Capitol Hill* Capitol Riverfront NoMa* Southwest*
Downtown DC CBD* East End* West End*
Dulles Corridor Great Falls Herndon Reston Route 28 Corridor North
Route 28 Corridor South
E Prince Georges County Bowie Greater Upper Marlboro
East Falls Church N Arlington/E FallsChurch
Frederick Frederick
Georgetown/Uptown Georgetown* Uptown*
Greater Fairfax County Annandale Fairfax Center Fairfax City Falls Church
McLean Merrifield Oakton Tysons Corner
Vienna
I-270 Corridor Gaithersburg Germantown I-270 Corridor North North Bethesda/Potomac
North Rockville Rockville
Leesburg/Route 7 Corridor Leesburg/West Loudoun Route 7 Corridor
Manassas/Route 29/I-66 Manassas Route 29/I-66 Corridor
N Prince Georges County Beltsville/Calverton College Park Greenbelt Landover/Largo/Captl Hts
Lanham Laurel
Northeast/Southeast Northeast* Southeast*
R-B Corridor Ballston Clarendon/Courthouse Rosslyn Virginia Square
S Prince Georges County Branch Avenue Corridor NatHbr/OxnHill/FtWash Pennsylvania Ave Corridor
SE Fairfax County Huntington/Mt Vernon Springfield/Burke
SE Montgomery County Kensington/Wheaton North Silver Spring/Rt 29 Silver Spring
Winchester City Winchester City
Woodbridge/I-95 Corridor Woodbridge/I-95 Corridor
* Submarkets comprising the CBD. For statistics reference the CBD vs Suburban Figures at a Glance Page.


EMPLOYMENT AND TENANT
Total Employment by Industry Total Employment Growth

Percent of Total Employment by Industry Total Number of Jobs Added Per Year
13% Natural Resources & Washington, D.C. U.S. Average
1%
0% 3% Mining 5.0%
Construction
4% 4.0%
Manufacturing
3.0%
Trade, Transportation &
2.0%
Utilities
Information
Percent Growth
26% 1.0%
Financial Activities 0.0%
24% Professional & Business -1.0%
Services
Education & Health -2.0%
Services -3.0%
Leisure & Hospitality
-4.0%
Other Services
7% -5.0%
Government
12% -6.0%
10%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: Department of Labor, Bureau of Labor Statistics Source: Department of Labor, Bureau of Labor Statistics
Office* Employment Growth Office* Employment Growth

Cumulative Growth in Office* Jobs Over the Past 5 Years Number of Office* Jobs Added Per Year
Employment Inventory
Washington, D.C. U.S. Average
Market Growth Growth Difference 9.0%
8.0%
Atlanta -9.70% 6.00% -15.70%
7.0%
Boston -1.90% 2.70% -4.60% 6.0%
5.0%
Chicago -11.60% 3.50% -15.10% 4.0%
3.0%
Percent Growth
Dallas/Ft Worth -0.70% 6.40% -7.10% 2.0%

1.0%
Denver -3.90% 4.70% -8.60% 0.0%
-1.0%
Los Angeles -11.10% 2.80% -13.90% -2.0%
New York City -2.80% 1.50% -4.30% -3.0%
-4.0%
Seattle/Puget Sound -4.20% 9.30% -13.50% -5.0%
-6.0%
Tampa/St Petersburg -12.90% 6.60% -19.50% -7.0%
-8.0%
Washington -1.60% 7.50% -9.10%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: Department of Labor, Bureau of Labor Statistics
Source: Department of Labor, Bureau of Labor Statistics. * Office employment is defined as jobs in the Information,
Financial Activities, and Professional & Business Services industries
Historical Unemployment Rates

Washington, D.C. U.S. Average
12.0%
10.0%
Percent Unemployment
8.0%
6.0%
4.0%
2.0%
0.0%
2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010
1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q
Source: Department of Labor, Bureau of Labor Statistics.


EMPLOYMENT AND TENANT
Tenant by Size Range Tenants by Lease Expiration

Based on Total Number of Tenants Based on Total Square Footage of Tenants
75,000 SF & Up 2.8% 2017 7.5%
50,000-74,999 SF 1.4%
2016 6.6%
25,000-49,999 SF 4.3%
2015 10.4%
10,000-24,999 SF 11.7%
2014 12.2%
5,000-9,999 SF 15.0%
2013 12.1%
2,500-4,999 SF 22.2%
Up to 2,499 SF 42.5% 2012 12.7%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 0% 2% 4% 6% 8% 10% 12% 14%
Percentage of Tenants Percentage of Tenants
Source: CoStar Tenant® Source: CoStar Tenant®
Tenants by Industry SF Per Employee by Industry

Based on Total Square Footage of Tenants Based on All Tenants
Services 21.6% Law Firms 425.2
Government 16.0% Services 352.5
Business-Service 15.0% Government 347.9
Finance/Ins/RE 12.8% Manufacturing 325.2
Law Firms 10.9% Finance/Ins/RE 298.1
Manufacturing 6.2% Retailers/Wholes 288.6
Communications 4.5% Engineers/Archit 280.9
Medical 4.2% Agri/Mining/Util 276.5
Engineers/Archit 3.3% Business-Service 271.6
Agri/Mining/Util 2.1% Communications 257.0
Retailers/Wholes 1.6% Accountants 252.7
Accountants 1.4% Medical 249.2
Transportation 0.5% Transportation 230.3
0% 5% 10% 15% 20% 25% 0 50 100 150 200 250 300 350 400 450
Percentage of Tenants
SF Per Employee
Source: CoStar Tenant® Source: CoStar Tenant®


INVENTORY & DEVELOPMENT
Construction Highlights in Select CoStar Markets

Color Coded by Under Construction Square Footage as a Percentage of Existing Inventory
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Historical Deliveries 1982 - 2010

Deliveries Average Delivered SF
25.0
21.8
20.0 18.3
17.6 17.1
16.8 16.6
14.5
Millions of SF
15.0 13.4
12.1 12.2
11.3 11.5 11.2
9.8 10.2
9.4
10.0 8.4
7.1 7.6
6.9
5.3 5.0 4.9
4.4 4.4
5.0 3.7
2.5 2.3
1.7
0.0
1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: CoStar Property® * Future deliveries based on current under construction buildings.
Construction Activity Markets Ranked by Under Construction Square Footage

Under Construction Inventory Average Bldg Size
Market # Bldgs Total RBA Preleased SF Preleased % All Existing U/C
Downtown DC 4 1,071,083 668,989 62.5% 113,289 267,771
R-B Corridor 3 797,315 485,220 60.9% 128,544 265,772
Capitol Hill Area 1 414,029 0 0.0% 72,611 414,029
SE Fairfax County 5 394,280 94,280 23.9% 28,152 78,856
I-270 Corridor 1 358,440 358,440 100.0% 56,217 358,440
Georgetown/Uptown 1 140,000 103,600 74.0% 20,725 140,000
Dulles Corridor 1 120,000 120,000 100.0% 73,615 120,000
Woodbridge/I-95 Corridor 2 50,032 23,725 47.4% 14,618 25,016
Frederick 1 33,000 0 0.0% 14,797 33,000
Alexandria/I-395 Area 1 15,000 9,750 65.0% 44,851 15,000
All Other 2 16,103 0 0.0% 33,450 8,051
Totals 22 3,409,282 1,864,004 54.7% 47,439 154,967
Recent Deliveries Future Deliveries

Leased & Un-Leased SF in Deliveries Since 2006 Preleased & Un-Leased SF in Properties Scheduled to Deliver
Leased Un-Leased Preleased Un-Leased
12.0 1,400
1,200
10.0
1,000
8.0 T
Thousands of SF
Millions of SF
800
6.0
600
4.0
400
2.0
200
0.0 0
2006 2007 2008 2009 2010 2011 1q 2011 2q 2011 3q 2011 4q
Source: CoStar Property® Source: CoStar Property®


Historical Construction Starts & Deliveries

Square Footage Per Quarter Starting and Completing Construction
Construction Starts Deliveries
4.5
4.0 3.82
3.36
3.5 3.17 3.20
3.02
2.87
3.0
Millions of SF
2.47
2.5 2.23 2.30
2.14 2.19
1.98 1.98
2.0 1.80
1.69 1.64
1.52 1.55
1.5 1.32
1.09 1.05
1.0 0.67 0.70
0.60 0.53 0.59
0.38
0.5 0.20 0.24
0.16
0.00 0.04
0.0
2007 1q 2007 2q 2007 3q 2007 4q 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q 2010 3q 2010 4q
Recent Deliveries by Project Size Breakdown of Year-to-Date Development Based on RBA of Project
Building Size # Bldgs RBA SF Leased % Leased Avg Rate Single-Tenant Multi-Tenant
< 50,000 SF 8 164,588 66,237 40.2% $28.54 0 164,588
50,000 SF - 99,999 SF 2 138,546 57,896 41.8% $70.00 50,000 88,546
100,000 SF - 249,999 SF 8 1,147,745 401,513 35.0% $44.32 0 1,147,745
250,000 SF - 499,999 SF 5 1,805,712 1,269,022 70.3% $53.50 0 1,805,712
>= 500,000 SF 2 1,114,088 1,114,088 100.0% $0.00 1,114,088 0
Recent Development by Tenancy Existing Inventory Comparison

Based on RBA Developed for Single & Multi Tenant Use Based on Total RBA
2010 Deliveries Currently Under Construction By Class By Space Type
27% 8% 11%
27% 37%
73% 55%
73% 89%
Class A Class B Class C Multi Single

Multi Single Multi Single


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FIGURES AT A GLANCE
Class A Market Statistics Year-End 2010

Existing Inventory Vacancy YTD Net YTD Under Quoted
Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates
Alexandria/I-395 Area 100 19,076,797 2,577,219 2,690,039 14.1% 432,482 523,941 0 $36.99
Bethesda/Chevy Chase 27 5,796,554 388,596 590,058 10.2% (55,989) 0 0 $37.25
Capitol Hill Area 71 24,204,753 4,527,366 4,599,086 19.0% 2,962,260 2,280,614 414,029 $51.65
Downtown DC 240 59,849,806 5,757,256 6,759,724 11.3% 962,194 365,000 1,071,083 $54.29
Dulles Corridor 284 39,325,670 6,246,240 6,809,057 17.3% 941,222 525,000 120,000 $28.21
E Prince Georges County 9 822,842 168,413 197,107 24.0% 64,198 0 0 $21.98
East Falls Church 1 300,000 2,500 2,500 0.8% 0 0 0 $37.99
Frederick 20 2,086,538 251,705 260,292 12.5% (9,195) 0 0 $26.10
Georgetown/Uptown 23 4,056,906 476,077 561,130 13.8% (35,107) 0 140,000 $42.18
Greater Fairfax County 189 33,588,569 4,893,348 5,444,723 16.2% (708,307) 0 0 $32.06
I-270 Corridor 145 20,784,328 3,267,023 3,700,268 17.8% 626,319 0 358,440 $30.55
Leesburg/Route 7 Corridor 39 3,451,836 899,453 910,760 26.4% 20,930 121,000 0 $26.52
Manassas/Route 29/I-66 15 987,949 243,495 243,495 24.6% 54,427 0 0 $24.60
N Prince Georges County 55 7,505,482 1,545,621 1,577,520 21.0% 143,859 123,000 0 $21.03
Northeast/Southeast 1 63,000 1,400 1,400 2.2% (200) 0 0 $0.00
R-B Corridor 68 15,697,030 829,989 1,110,216 7.1% 260,449 217,536 797,315 $41.83
S Prince Georges County 8 1,049,087 511,369 528,423 50.4% (19,741) 0 0 $23.21
SE Fairfax County 14 1,615,506 77,063 88,123 5.5% 105,797 0 94,280 $35.93
SE Montgomery County 30 5,661,497 446,395 510,443 9.0% (31,830) 0 0 $30.97
Winchester City 1 24,500 24,500 24,500 100.0% 0 0 0 $26.28
Woodbridge/I-95 Corridor 11 544,189 141,480 144,752 26.6% 51,313 32,400 0 $25.60
Totals 1,351 246,492,839 33,276,508 36,753,616 14.9% 5,765,081 4,188,491 2,995,147 $37.88
Class B Market Statistics Year-End 2010

Alexandria/I-395 Area 403 15,819,620 882,032 946,645 6.0% (43,937) 0 15,000 $29.43
Bethesda/Chevy Chase 138 5,151,776 388,245 413,504 8.0% 16,842 0 0 $31.95
Capitol Hill Area 139 7,286,508 721,460 727,160 10.0% (274,892) 0 0 $42.03
Downtown DC 360 30,265,937 1,743,539 2,051,261 6.8% (81,307) 0 0 $41.73
Dulles Corridor 390 13,906,171 2,097,165 2,271,173 16.3% (65,044) 7,000 0 $21.91
E Prince Georges County 45 1,124,517 81,884 84,434 7.5% (10,094) 0 0 $21.44
East Falls Church 22 319,643 2,600 2,600 0.8% 1,024 0 0 $37.20
Frederick 232 4,236,229 634,915 639,263 15.1% 4,981 34,788 33,000 $23.55
Georgetown/Uptown 364 8,433,493 567,719 625,775 7.4% (8,785) 0 0 $33.61
Greater Fairfax County 644 24,276,598 3,333,863 3,520,526 14.5% 74,347 12,700 0 $24.91
I-270 Corridor 373 17,106,473 1,978,415 1,995,072 11.7% 205,562 20,000 0 $23.56
Leesburg/Route 7 Corridor 216 3,395,708 366,409 401,647 11.8% (20,616) 16,700 11,303 $24.34
Manassas/Route 29/I-66 181 3,998,866 454,123 475,645 11.9% (28,296) 20,000 0 $20.29
N Prince Georges County 275 9,053,686 1,775,000 1,785,287 19.7% (57,648) 0 0 $19.76
Northeast/Southeast 61 1,339,496 150,469 150,469 11.2% (141,669) 0 0 $24.04
R-B Corridor 55 6,222,446 431,578 442,935 7.1% 278,316 0 0 $36.14
S Prince Georges County 86 2,354,612 292,225 292,225 12.4% 41,850 21,000 0 $21.71
SE Fairfax County 170 4,568,789 704,040 713,747 15.6% (225,231) 0 300,000 $26.40
SE Montgomery County 158 5,478,754 482,773 516,441 9.4% 30,282 50,000 0 $23.08
Winchester City 72 1,537,849 128,684 128,684 8.4% 25,254 0 4,800 $18.43
Woodbridge/I-95 Corridor 140 2,133,189 251,117 255,197 12.0% 87,554 0 50,032 $22.03
Totals 4,524 168,010,360 17,468,255 18,439,690 11.0% (191,507) 182,188 414,135 $27.58


FIGURES AT A GLANCE
Class C Market Statistics Year-End 2010

Alexandria/I-395 Area 373 4,393,417 265,770 265,770 6.0% (19,598) 0 0 $24.03
Bethesda/Chevy Chase 95 1,006,579 155,344 155,344 15.4% (8,311) 0 0 $26.79
Capitol Hill Area 245 1,546,921 86,616 89,726 5.8% (2,914) 0 0 $36.39
Downtown DC 243 5,387,177 211,223 213,423 4.0% (23,655) 0 0 $37.71
Dulles Corridor 63 1,022,674 105,140 109,040 10.7% (34,197) 0 0 $20.37
E Prince Georges County 36 238,224 7,356 7,356 3.1% 11,854 0 0 $19.04
East Falls Church 29 305,272 60,293 60,293 19.8% (42,091) 0 0 $31.31
Frederick 277 1,505,090 123,346 123,346 8.2% 3,603 0 0 $18.37
Georgetown/Uptown 413 4,089,799 328,634 328,634 8.0% (31,071) 0 0 $32.05
Greater Fairfax County 303 3,034,253 191,081 191,271 6.3% (18,642) 0 0 $24.25
I-270 Corridor 227 3,991,037 311,844 319,244 8.0% 49,606 0 0 $22.28
Leesburg/Route 7 Corridor 110 480,001 56,029 57,789 12.0% (7,776) 0 0 $22.27
Manassas/Route 29/I-66 151 891,020 54,745 55,095 6.2% (8,623) 0 0 $18.59
N Prince Georges County 335 2,558,010 153,501 153,501 6.0% 17,031 0 0 $19.48
R-B Corridor 58 1,346,998 105,023 105,023 7.8% 23,530 0 0 $23.11
S Prince Georges County 191 1,478,866 128,072 128,072 8.7% (275) 0 0 $19.77
SE Fairfax County 69 938,280 43,102 43,102 4.6% (3,038) 0 0 $18.21
SE Montgomery County 179 1,750,199 244,715 260,142 14.9% (26,323) 0 0 $21.46
Winchester City 39 227,995 43,067 43,067 18.9% (2,641) 0 0 $14.72
Woodbridge/I-95 Corridor 69 538,554 97,447 97,447 18.1% (33,795) 0 0 $20.50
Totals 3,658 37,733,212 2,905,542 2,949,746 7.8% (165,272) 0 0 $24.46
Total Office Market Statistics Year-End 2010

Alexandria/I-395 Area 876 39,289,834 3,725,021 3,902,454 9.9% 368,947 523,941 15,000 $33.90
Bethesda/Chevy Chase 260 11,954,909 932,185 1,158,906 9.7% (47,458) 0 0 $34.27
Capitol Hill Area 455 33,038,182 5,335,442 5,415,972 16.4% 2,684,454 2,280,614 414,029 $49.79
Downtown DC 843 95,502,920 7,712,018 9,024,408 9.4% 857,232 365,000 1,071,083 $50.40
Dulles Corridor 737 54,254,515 8,448,545 9,189,270 16.9% 841,981 532,000 120,000 $26.60
E Prince Georges County 90 2,185,583 257,653 288,897 13.2% 65,958 0 0 $21.57
East Falls Church 52 924,915 65,393 65,393 7.1% (41,067) 0 0 $32.05
Frederick 529 7,827,857 1,009,966 1,022,901 13.1% (611) 34,788 33,000 $23.52
Georgetown/Uptown 800 16,580,198 1,372,430 1,515,539 9.1% (74,963) 0 140,000 $37.18
Greater Fairfax County 1,136 60,899,420 8,418,292 9,156,520 15.0% (652,602) 12,700 0 $28.95
I-270 Corridor 745 41,881,838 5,557,282 6,014,584 14.4% 881,487 20,000 358,440 $27.58
Leesburg/Route 7 Corridor 365 7,327,545 1,321,891 1,370,196 18.7% (7,462) 137,700 11,303 $25.84
Manassas/Route 29/I-66 347 5,877,835 752,363 774,235 13.2% 17,508 20,000 0 $21.53
N Prince Georges County 665 19,117,178 3,474,122 3,516,308 18.4% 103,242 123,000 0 $20.21
R-B Corridor 181 23,266,474 1,366,590 1,658,174 7.1% 562,295 217,536 797,315 $40.52
S Prince Georges County 285 4,882,565 931,666 948,720 19.4% 21,834 21,000 0 $22.09
SE Fairfax County 253 7,122,575 824,205 844,972 11.9% (122,472) 0 394,280 $28.46
SE Montgomery County 367 12,890,450 1,173,883 1,287,026 10.0% (27,871) 50,000 0 $26.06
Winchester City 112 1,790,344 196,251 196,251 11.0% 22,613 0 4,800 $18.81
Woodbridge/I-95 Corridor 220 3,215,932 490,044 497,396 15.5% 105,072 32,400 50,032 $22.54
Totals 9,533 452,236,411 53,650,305 58,143,052 12.9% 5,408,302 4,370,679 3,409,282 $33.72


FIGURES AT A GLANCE
Class A Submarket Statistics Year-End 2010

Annandale 5 486,100 93,546 96,246 19.8% 1,127 0 0 $26.06
Ballston 26 6,024,153 182,185 235,673 3.9% 139,985 0 797,315 $43.20
Beltsville/Calvert 7 796,902 266,477 266,477 33.4% (4,351) 0 0 $23.50
Bethesda/Chevy 27 5,796,554 388,596 590,058 10.2% (55,989) 0 0 $37.25
Bowie 8 768,842 168,413 197,107 25.6% 64,198 0 0 $21.98
Branch Avenue C 1 59,753 46,558 46,558 77.9% 0 0 0 $0.00
Capitol Hill 11 2,515,170 307,391 317,046 12.6% 48,638 162,268 0 $61.93
Capitol Riverfron 9 3,310,453 411,809 429,322 13.0% 192,075 0 414,029 $47.54
CBD 103 23,392,821 2,516,378 2,962,985 12.7% 528,780 365,000 394,145 $52.67
Clarendon/Court 20 3,623,560 428,676 563,183 15.5% 112,470 217,536 0 $40.92
College Park 10 1,835,819 141,004 141,004 7.7% 110,508 123,000 0 $24.25
Crystal City 15 4,664,306 671,299 704,103 15.1% 275,176 409,744 0 $40.36
East End 123 33,750,879 3,048,251 3,591,611 10.6% 248,396 0 244,038 $56.78
Eisenhower Ave 12 3,350,148 262,909 262,909 7.8% 76,616 0 0 $38.29
Fairfax Center 35 5,146,732 979,290 1,126,355 21.9% (309,990) 0 0 $27.90
Fairfax City 12 1,020,426 156,005 156,005 15.3% (70,239) 0 0 $28.79
Falls Church 4 364,341 14,227 14,227 3.9% 38,613 0 0 $25.92
Frederick 20 2,086,538 251,705 260,292 12.5% (9,195) 0 0 $26.10
Gaithersburg 14 1,513,296 330,329 339,283 22.4% 112,895 0 0 $24.73
Georgetown 11 1,788,450 249,129 306,446 17.1% 13,855 0 0 $43.96
Germantown 12 1,226,579 240,688 264,953 21.6% 44,298 0 0 $28.68
Great Falls 0 0 0 0 0.0% 0 0 0 $0.00
Greater Upper M 1 54,000 0 0 0.0% 0 0 0 $0.00
Greenbelt 20 2,296,179 580,704 585,679 25.5% 48,134 0 0 $21.53
Herndon 61 9,349,026 1,393,707 1,569,905 16.8% 72,302 0 0 $29.94
Huntington/Mt V 2 171,439 39,718 39,718 23.2% (4,505) 0 0 $24.73
I-270 Corridor N 1 250,000 0 0 0.0% 0 0 0 $0.00
I-395 Corridor 23 5,619,488 958,588 1,007,075 17.9% (45,433) 0 0 $33.50
Kensington/Whe 2 165,000 18,431 21,431 13.0% (10,983) 0 0 $29.00
Landover/Largo/ 9 1,204,035 445,578 445,578 37.0% (20,275) 0 0 $19.35
Lanham 2 447,000 8,467 25,301 5.7% 3,679 0 0 $16.00
Laurel 7 925,547 103,391 113,481 12.3% 6,164 0 0 $19.38
Leesburg/West L 13 772,068 419,671 419,671 54.4% (51,861) 121,000 0 $25.59


FIGURES AT A GLANCE
Class A Submarket Statistics Year-End 2010

Manassas 4 247,824 107,791 107,791 43.5% 23,562 0 0 $25.08
McLean 1 65,999 4,144 7,094 10.7% (3,641) 0 0 $30.38
Merrifield 36 6,720,582 1,250,847 1,356,369 20.2% (144,901) 0 0 $34.74
N Arlington/E Fa 1 300,000 2,500 2,500 0.8% 0 0 0 $37.99
NatHbr/OxnHill/ 4 450,366 79,155 96,209 21.4% (38,923) 0 0 $26.22
NoMa 27 9,523,101 1,756,804 1,775,838 18.6% 1,506,007 1,492,346 0 $49.26
North Bethesda/ 31 6,819,655 973,318 1,147,321 16.8% (46,894) 0 358,440 $31.77
North Rockville 61 7,461,786 1,124,938 1,298,748 17.4% 243,629 0 0 $29.64
North Silver Sprin 9 1,500,945 22,289 28,114 1.9% 50,098 0 0 $24.18
Northeast 0 0 0 0 0.0% 0 0 0 $0.00
Oakton 11 1,397,990 244,461 275,788 19.7% (18,486) 0 0 $27.11
Old Town Alexa 47 4,750,522 666,877 698,406 14.7% 143,669 114,197 0 $34.52
Pennsylvania Av 3 538,968 385,656 385,656 71.6% 19,182 0 0 $22.50
Pentagon City 3 692,333 17,546 17,546 2.5% (17,546) 0 0 $0.00
Reston 101 14,764,470 2,382,151 2,739,348 18.6% (159,834) 0 0 $27.72
Rockville 26 3,513,012 597,750 649,963 18.5% 272,391 0 0 $33.79
Rosslyn 16 5,050,946 192,060 284,292 5.6% (22,214) 0 0 $39.78
Route 28 Corrido 50 5,484,055 770,066 792,133 14.4% 152,752 0 120,000 $24.89
Route 28 Corrido 72 9,728,119 1,700,316 1,707,671 17.6% 876,002 525,000 0 $28.11
Route 29/I-66 C 11 740,125 135,704 135,704 18.3% 30,865 0 0 $24.23
Route 7 Corridor 26 2,679,768 479,782 491,089 18.3% 72,791 0 0 $27.41
Silver Spring 19 3,995,552 405,675 460,898 11.5% (70,945) 0 0 $31.62
Southeast 1 63,000 1,400 1,400 2.2% (200) 0 0 $0.00
Southwest 24 8,856,029 2,051,362 2,076,880 23.5% 1,215,540 626,000 0 $52.50
Springfield/Burke 12 1,444,067 37,345 48,405 3.4% 110,302 0 94,280 $38.41
Tysons Corner 83 17,986,399 2,150,828 2,412,639 13.4% (203,937) 0 0 $32.86
Uptown 12 2,268,456 226,948 254,684 11.2% (48,962) 0 140,000 $40.38
Vienna 2 400,000 0 0 0.0% 3,147 0 0 $0.00
Virginia Square 6 998,371 27,068 27,068 2.7% 30,208 0 0 $44.74
West End 14 2,706,106 192,627 205,128 7.6% 185,018 0 432,900 $42.90
Winchester City 1 24,500 24,500 24,500 100.0% 0 0 0 $26.28
Woodbridge/I-9 11 544,189 141,480 144,752 26.6% 51,313 32,400 0 $25.60

Totals 1,351 246,492,839 33,276,508 36,753,616 14.9% 5,765,081 4,188,491 2,995,147 $37.88


FIGURES AT A GLANCE
Class B Submarket Statistics Year-End 2010

Annandale 60 1,485,642 162,482 182,678 12.3% 9,751 0 0 $22.57
Ballston 5 380,118 85,076 85,076 22.4% 24,290 0 0 $29.46
Bethesda/Chevy 138 5,151,776 388,245 413,504 8.0% 16,842 0 0 $31.95
Bowie 29 916,122 64,974 67,524 7.4% 2,030 0 0 $22.55
Branch Avenue C 47 1,521,137 138,107 138,107 9.1% 20,768 0 0 $19.79
Capitol Hill 107 2,567,441 476,699 482,399 18.8% (313,537) 0 0 $46.15
Capitol Riverfron 8 1,202,396 86,554 86,554 7.2% 11,740 0 0 $0.00
CBD 207 18,901,996 916,002 1,091,801 5.8% (54,924) 0 0 $42.11
Clarendon/Court 15 1,938,705 149,141 150,666 7.8% 178,303 0 0 $38.98
College Park 50 1,738,716 397,350 397,350 22.9% (20,698) 0 0 $20.88
Crystal City 21 6,014,010 311,535 328,213 5.5% 24,540 0 0 $36.17
East End 138 10,333,525 775,358 907,281 8.8% (70,380) 0 0 $41.47
Eisenhower Ave 16 1,706,720 113,777 113,777 6.7% (72,665) 0 0 $26.09
Fairfax Center 30 1,775,903 166,847 187,718 10.6% 100,920 0 0 $23.00
Fairfax City 139 3,325,397 362,690 365,646 11.0% (2,033) 0 0 $21.12
Falls Church 82 2,021,120 239,676 249,074 12.3% 28,497 0 0 $23.66
Frederick 232 4,236,229 634,915 639,263 15.1% 4,981 34,788 33,000 $23.55
Gaithersburg 113 3,685,821 448,139 448,139 12.2% (17,081) 0 0 $21.22
Georgetown 91 1,388,600 52,878 61,427 4.4% 71,460 0 0 $40.07
Germantown 39 1,621,656 145,632 145,632 9.0% 126,387 20,000 0 $18.53
Great Falls 17 197,225 17,064 17,064 8.7% 4,112 0 0 $25.52
Greater Upper M 16 208,395 16,910 16,910 8.1% (12,124) 0 0 $16.19
Greenbelt 50 1,254,670 245,862 250,512 20.0% (10,305) 0 0 $19.02
Herndon 95 2,786,384 435,406 449,132 16.1% (30,918) 0 0 $22.43
Huntington/Mt V 32 756,954 78,071 78,071 10.3% (31,869) 0 0 $22.61
I-270 Corridor N 7 644,274 11,443 11,443 1.8% (741) 0 0 $24.39
I-395 Corridor 97 3,005,357 138,938 170,498 5.7% (44,111) 0 0 $27.56
Kensington/Whe 45 1,436,527 111,657 119,410 8.3% 3,266 0 0 $22.23
Landover/Largo/ 48 2,071,276 404,810 405,447 19.6% 16,524 0 0 $21.15
Lanham 36 1,383,092 261,725 266,725 19.3% 26,763 0 0 $19.47
Laurel 70 1,772,147 268,918 268,918 15.2% 13,400 0 0 $18.23
Leesburg/West L 173 1,542,183 197,766 206,115 13.4% (5,562) 16,700 11,303 $25.45


FIGURES AT A GLANCE
Class B Submarket Statistics Year-End 2010

Manassas 82 1,913,267 199,010 210,410 11.0% 24,961 20,000 0 $21.69
McLean 73 1,484,438 115,873 121,362 8.2% 76 0 0 $27.83
Merrifield 68 2,970,110 299,135 349,263 11.8% (76,424) 12,700 0 $26.47
N Arlington/E Fa 22 319,643 2,600 2,600 0.8% 1,024 0 0 $37.20
NatHbr/OxnHill/ 20 566,960 122,907 122,907 21.7% 10,482 21,000 0 $24.92
NoMa 13 819,442 141,426 141,426 17.3% 14,158 0 0 $33.41
North Bethesda/ 65 2,898,308 239,500 252,545 8.7% 129,824 0 0 $26.11
North Rockville 66 4,109,240 645,098 645,982 15.7% (35,418) 0 0 $25.42
North Silver Sprin 48 1,924,222 157,329 173,095 9.0% (1,944) 0 0 $22.12
Northeast 39 1,045,168 108,820 108,820 10.4% (104,120) 0 0 $22.79
Oakton 10 195,458 5,900 5,900 3.0% 71,431 0 0 $23.65
Old Town Alexa 266 4,317,550 317,782 334,157 7.7% 48,299 0 15,000 $27.69
Pennsylvania Av 19 266,515 31,211 31,211 11.7% 10,600 0 0 $21.76
Pentagon City 3 775,983 0 0 0.0% 0 0 0 $0.00
Reston 103 4,001,090 523,315 527,715 13.2% 120,552 0 0 $23.19
Rockville 83 4,147,174 488,603 491,331 11.8% 2,591 0 0 $23.77
Rosslyn 23 3,442,780 173,809 183,641 5.3% 73,779 0 0 $37.67
Route 28 Corrido 92 3,523,200 582,696 603,798 17.1% (66,815) 7,000 0 $21.57
Route 28 Corrido 83 3,398,272 538,684 673,464 19.8% (91,975) 0 0 $20.67
Route 29/I-66 C 99 2,085,599 255,113 265,235 12.7% (53,257) 0 0 $19.22
Route 7 Corridor 43 1,853,525 168,643 195,532 10.5% (15,054) 0 0 $22.76
Silver Spring 65 2,118,005 213,787 223,936 10.6% 28,960 50,000 0 $24.16
Southeast 22 294,328 41,649 41,649 14.2% (37,549) 0 0 $29.31
Southwest 11 2,697,229 16,781 16,781 0.6% 12,747 0 0 $41.80
Springfield/Burke 138 3,811,835 625,969 635,676 16.7% (193,362) 0 300,000 $26.81
Tysons Corner 116 9,823,675 1,911,876 1,989,501 20.3% (43,811) 0 0 $25.75
Uptown 273 7,044,893 514,841 564,348 8.0% (80,245) 0 0 $32.70
Vienna 66 1,194,855 69,384 69,384 5.8% (14,060) 0 0 $23.31
Virginia Square 12 460,843 23,552 23,552 5.1% 1,944 0 0 $37.27
West End 15 1,030,416 52,179 52,179 5.1% 43,997 0 0 $38.57
Winchester City 72 1,537,849 128,684 128,684 8.4% 25,254 0 4,800 $18.43
Woodbridge/I-9 140 2,133,189 251,117 255,197 12.0% 87,554 0 50,032 $22.03

Totals 4,524 168,010,360 17,468,255 18,439,690 11.0% (191,507) 182,188 414,135 $27.58


FIGURES AT A GLANCE
Class C Submarket Statistics Year-End 2010

Annandale 28 185,876 7,878 7,878 4.2% (2,305) 0 0 $25.92
Ballston 9 582,746 4,100 4,100 0.7% (860) 0 0 $0.00
Bethesda/Chevy 95 1,006,579 155,344 155,344 15.4% (8,311) 0 0 $26.79
Bowie 12 134,314 4,200 4,200 3.1% 2,500 0 0 $16.89
Branch Avenue C 111 944,218 66,200 66,200 7.0% 17,834 0 0 $17.87
Capitol Hill 200 1,173,936 43,658 46,768 4.0% 14,324 0 0 $39.13
Capitol Riverfron 28 125,243 37,558 37,558 30.0% (13,488) 0 0 $30.19
CBD 103 2,193,734 65,883 65,883 3.0% (13,168) 0 0 $34.96
Clarendon/Court 31 430,752 29,940 29,940 7.0% (3,049) 0 0 $28.29
College Park 162 1,172,530 105,240 105,240 9.0% 14,561 0 0 $19.78
Crystal City 10 1,111,460 152,352 152,352 13.7% (17,078) 0 0 $25.56
East End 134 2,692,106 139,545 141,745 5.3% (7,932) 0 0 $39.45
Eisenhower Ave 11 55,173 0 0 0.0% 0 0 0 $25.67
Fairfax Center 5 99,541 927 927 0.9% 4,667 0 0 $19.66
Fairfax City 63 717,484 38,900 38,900 5.4% (25,194) 0 0 $23.29
Falls Church 101 704,731 67,929 68,119 9.7% 5,219 0 0 $20.50
Frederick 277 1,505,090 123,346 123,346 8.2% 3,603 0 0 $18.37
Gaithersburg 78 969,151 47,271 47,271 4.9% (3,637) 0 0 $21.66
Georgetown 67 464,429 26,219 26,219 5.6% (9,552) 0 0 $38.45
Germantown 8 38,849 1,400 1,400 3.6% (1,400) 0 0 $21.44
Great Falls 3 19,849 1,728 1,728 8.7% 1,072 0 0 $36.17
Greater Upper M 24 103,910 3,156 3,156 3.0% 9,354 0 0 $21.90
Greenbelt 8 85,434 0 0 0.0% 1,540 0 0 $18.23
Herndon 19 229,314 23,980 23,980 10.5% 1,203 0 0 $18.56
Huntington/Mt V 25 316,353 5,422 5,422 1.7% 2,338 0 0 $19.63
I-270 Corridor N 5 11,518 3,350 3,350 29.1% (894) 0 0 $18.45
I-395 Corridor 50 1,660,087 39,666 39,666 2.4% 3,110 0 0 $17.39
Kensington/Whe 51 504,165 53,625 64,514 12.8% 4,514 0 0 $21.45
Landover/Largo/ 68 535,063 6,386 6,386 1.2% 706 0 0 $18.17
Lanham 24 207,811 7,112 7,112 3.4% (4,118) 0 0 $17.14
Laurel 51 375,750 23,620 23,620 6.3% 11,027 0 0 $18.95
Leesburg/West L 108 463,956 56,029 57,789 12.5% (7,776) 0 0 $22.27


FIGURES AT A GLANCE
Class C Submarket Statistics Year-End 2010

Manassas 128 747,173 30,555 30,905 4.1% (2,051) 0 0 $18.63
McLean 23 244,758 15,221 15,221 6.2% 5,508 0 0 $35.26
Merrifield 15 182,934 7,946 7,946 4.3% 10,171 0 0 $26.17
N Arlington/E Fa 29 305,272 60,293 60,293 19.8% (42,091) 0 0 $31.31
NatHbr/OxnHill/ 26 216,618 52,670 52,670 24.3% (24,795) 0 0 $21.60
NoMa 15 181,181 5,400 5,400 3.0% (3,750) 0 0 $28.22
North Bethesda/ 38 972,793 130,539 131,939 13.6% (6,723) 0 0 $23.76
North Rockville 18 511,044 56,636 62,636 12.3% 16,894 0 0 $20.35
North Silver Sprin 24 164,254 7,760 7,760 4.7% 1,200 0 0 $19.59
Northeast 85 564,455 109,494 111,769 19.8% 4,377 0 0 $21.00
Oakton 6 54,286 1,022 1,022 1.9% (97) 0 0 $19.37
Old Town Alexa 302 1,566,697 73,752 73,752 4.7% (5,630) 0 0 $26.25
Pennsylvania Av 54 318,030 9,202 9,202 2.9% 6,686 0 0 $19.22
Pentagon City 0 0 0 0 0.0% 0 0 0 $0.00
Reston 14 486,050 20,763 20,763 4.3% (4,088) 0 0 $22.92
Rockville 80 1,487,682 72,648 72,648 4.9% 45,366 0 0 $22.40
Rosslyn 7 255,219 67,502 67,502 26.4% 29,020 0 0 $19.32
Route 28 Corrido 15 168,769 26,228 30,128 17.9% (11,976) 0 0 $18.74
Route 28 Corrido 12 118,692 32,441 32,441 27.3% (20,408) 0 0 $19.88
Route 29/I-66 C 23 143,847 24,190 24,190 16.8% (6,572) 0 0 $18.51
Route 7 Corridor 2 16,045 0 0 0.0% 0 0 0 $0.00
Silver Spring 104 1,081,780 183,330 187,868 17.4% (32,037) 0 0 $21.54
Southeast 68 438,391 23,700 31,292 7.1% (12,323) 0 0 $25.50
Southwest 2 66,561 0 0 0.0% 0 0 0 $0.00
Springfield/Burke 44 621,927 37,680 37,680 6.1% (5,376) 0 0 $17.55
Tysons Corner 21 480,158 13,170 13,170 2.7% (4,280) 0 0 $23.94
Uptown 346 3,625,370 302,415 302,415 8.3% (21,519) 0 0 $31.31
Vienna 41 364,485 38,088 38,088 10.4% (12,331) 0 0 $28.67
Virginia Square 11 78,281 3,481 3,481 4.4% (1,581) 0 0 $30.96
West End 6 501,337 5,795 5,795 1.2% (2,555) 0 0 $36.54
Winchester City 39 227,995 43,067 43,067 18.9% (2,641) 0 0 $14.72
Woodbridge/I-9 69 538,554 97,447 97,447 18.1% (33,795) 0 0 $20.50

Totals 3,658 37,733,212 2,905,542 2,949,746 7.8% (165,272) 0 0 $24.46


FIGURES AT A GLANCE
Total Office Submarket Statistics Year-End 2010

Annandale 93 2,157,618 263,906 286,802 13.3% 8,573 0 0 $24.03
Ballston 40 6,987,017 271,361 324,849 4.6% 163,415 0 797,315 $41.87
Beltsville/Calvert 50 1,812,109 473,955 473,955 26.2% (94,368) 0 0 $20.38
Bethesda/Chevy 260 11,954,909 932,185 1,158,906 9.7% (47,458) 0 0 $34.27
Bowie 49 1,819,278 237,587 268,831 14.8% 68,728 0 0 $22.06
Branch Avenue C 159 2,525,108 250,865 250,865 9.9% 38,602 0 0 $19.20
Capitol Hill 318 6,256,547 827,748 846,213 13.5% (250,575) 162,268 0 $52.61
Capitol Riverfron 45 4,638,092 535,921 553,434 11.9% 190,327 0 414,029 $46.02
CBD 413 44,488,551 3,498,263 4,120,669 9.3% 460,688 365,000 394,145 $49.01
Clarendon/Court 66 5,993,017 607,757 743,789 12.4% 287,724 217,536 0 $40.36
College Park 222 4,747,065 643,594 643,594 13.6% 104,371 123,000 0 $21.39
Crystal City 46 11,789,776 1,135,186 1,184,668 10.0% 282,638 409,744 0 $38.48
East End 395 46,776,510 3,963,154 4,640,637 9.9% 170,084 0 244,038 $52.54
Eisenhower Ave 39 5,112,041 376,686 376,686 7.4% 3,951 0 0 $33.60
Fairfax Center 70 7,022,176 1,147,064 1,315,000 18.7% (204,403) 0 0 $26.60
Fairfax City 214 5,063,307 557,595 560,551 11.1% (97,466) 0 0 $23.11
Falls Church 187 3,090,192 321,832 331,420 10.7% 72,329 0 0 $23.20
Frederick 529 7,827,857 1,009,966 1,022,901 13.1% (611) 34,788 33,000 $23.52
Gaithersburg 205 6,168,268 825,739 834,693 13.5% 92,177 0 0 $22.52
Georgetown 169 3,641,479 328,226 394,092 10.8% 75,763 0 0 $42.98
Germantown 59 2,887,084 387,720 411,985 14.3% 169,285 20,000 0 $24.01
Great Falls 20 217,074 18,792 18,792 8.7% 5,184 0 0 $27.02
Greater Upper M 41 366,305 20,066 20,066 5.5% (2,770) 0 0 $17.38
Greenbelt 78 3,636,283 826,566 836,191 23.0% 39,369 0 0 $20.44
Herndon 175 12,364,724 1,853,093 2,043,017 16.5% 42,587 0 0 $28.06
Huntington/Mt V 59 1,244,746 123,211 123,211 9.9% (34,036) 0 0 $23.13
I-270 Corridor N 13 905,792 14,793 14,793 1.6% (1,635) 0 0 $21.84
I-395 Corridor 170 10,284,932 1,137,192 1,217,239 11.8% (86,434) 0 0 $30.56
Kensington/Whe 98 2,105,692 183,713 205,355 9.8% (3,203) 0 0 $22.36
Landover/Largo/ 125 3,810,374 856,774 857,411 22.5% (3,045) 0 0 $20.24
Lanham 62 2,037,903 277,304 299,138 14.7% 26,324 0 0 $19.30
Laurel 128 3,073,444 395,929 406,019 13.2% 30,591 0 0 $18.62
Leesburg/West L 294 2,778,207 673,466 683,575 24.6% (65,199) 137,700 11,303 $25.36


FIGURES AT A GLANCE
Total Office Submarket Statistics Year-End 2010

Manassas 214 2,908,264 337,356 349,106 12.0% 46,472 20,000 0 $22.51
McLean 97 1,795,195 135,238 143,677 8.0% 1,943 0 0 $28.88
Merrifield 119 9,873,626 1,557,928 1,713,578 17.4% (211,154) 12,700 0 $33.19
N Arlington/E Fa 52 924,915 65,393 65,393 7.1% (41,067) 0 0 $32.05
NatHbr/OxnHill/ 50 1,233,944 254,732 271,786 22.0% (53,236) 21,000 0 $24.35
NoMa 55 10,523,724 1,903,630 1,922,664 18.3% 1,516,415 1,492,346 0 $47.52
North Bethesda/ 134 10,690,756 1,343,357 1,531,805 14.3% 76,207 0 358,440 $29.35
North Rockville 145 12,082,070 1,826,672 2,007,366 16.6% 225,105 0 0 $28.07
North Silver Sprin 81 3,589,421 187,378 208,969 5.8% 49,354 0 0 $22.51
Northeast 124 1,609,623 218,314 220,589 13.7% (99,743) 0 0 $21.80
Oakton 27 1,647,734 251,383 282,710 17.2% 52,848 0 0 $27.02
Old Town Alexa 615 10,634,769 1,058,411 1,106,315 10.4% 186,338 114,197 15,000 $31.42
Pennsylvania Av 76 1,123,513 426,069 426,069 37.9% 36,468 0 0 $22.32
Pentagon City 6 1,468,316 17,546 17,546 1.2% (17,546) 0 0 $0.00
Reston 218 19,251,610 2,926,229 3,287,826 17.1% (43,370) 0 0 $26.95
Rockville 189 9,147,868 1,159,001 1,213,942 13.3% 320,348 0 0 $29.36
Rosslyn 46 8,748,945 433,371 535,435 6.1% 80,585 0 0 $38.29
Route 28 Corrido 157 9,176,024 1,378,990 1,426,059 15.5% 73,961 7,000 120,000 $23.52
Route 28 Corrido 167 13,245,083 2,271,441 2,413,576 18.2% 763,619 525,000 0 $25.90
Route 29/I-66 C 133 2,969,571 415,007 425,129 14.3% (28,964) 0 0 $20.73
Route 7 Corridor 71 4,549,338 648,425 686,621 15.1% 57,737 0 0 $26.38
Silver Spring 188 7,195,337 802,792 872,702 12.1% (74,022) 50,000 0 $27.74
Southeast 91 795,719 66,749 74,341 9.3% (50,072) 0 0 $27.58
Southwest 37 11,619,819 2,068,143 2,093,661 18.0% 1,228,287 626,000 0 $52.19
Springfield/Burke 194 5,877,829 700,994 721,761 12.3% (88,436) 0 394,280 $29.22
Tysons Corner 220 28,290,232 4,075,874 4,415,310 15.6% (252,028) 0 0 $29.51
Uptown 631 12,938,719 1,044,204 1,121,447 8.7% (150,726) 0 140,000 $34.82
Vienna 109 1,959,340 107,472 107,472 5.5% (23,244) 0 0 $24.90
Virginia Square 29 1,537,495 54,101 54,101 3.5% 30,571 0 0 $43.81
West End 35 4,237,859 250,601 263,102 6.2% 226,460 0 432,900 $41.78
Winchester City 112 1,790,344 196,251 196,251 11.0% 22,613 0 4,800 $18.81
Woodbridge/I-9 220 3,215,932 490,044 497,396 15.5% 105,072 32,400 50,032 $22.54
Totals 9,533 452,236,411 53,650,305 58,143,052 12.9% 5,408,302 4,370,679 3,409,282 $33.72


FIGURES AT A GLANCE

CBD 326 84,864,012 10,350,290 11,492,018 13.5% 3,697,072 2,645,614 1,211,083 $53.02
Suburban 1,025 161,628,827 22,926,218 25,261,598 15.6% 2,068,009 1,542,877 1,784,064 $31.11
Totals 1,351 246,492,839 33,276,508 36,753,616 14.9% 5,765,081 4,188,491 2,995,147 $37.88

CBD 916 46,123,038 3,096,633 3,468,111 7.5% (518,393) 0 0 $40.07
Suburban 3,608 121,887,322 14,371,622 14,971,579 12.3% 326,886 182,188 414,135 $24.04
Totals 4,524 168,010,360 17,468,255 18,439,690 11.0% (191,507) 182,188 414,135 $27.58
Class C Market Statistics Year-End 2010

CBD 1,026 11,901,500 722,109 737,286 6.2% (52,098) 0 0 $32.38
Suburban 2,632 25,831,712 2,183,433 2,212,460 8.6% (113,174) 0 0 $21.97
Totals 3,658 37,733,212 2,905,542 2,949,746 7.8% (165,272) 0 0 $24.46

Class A & B Market Statistics Year-End 2010

CBD 1,242 130,987,050 13,446,923 14,960,129 11.4% 3,178,679 2,645,614 1,211,083 $49.28
Suburban 4,633 283,516,149 37,297,840 40,233,177 14.2% 2,394,895 1,725,065 2,198,199 $28.35
Totals 5,875 414,503,199 50,744,763 55,193,306 13.3% 5,573,574 4,370,679 3,409,282 $34.15

CBD 2,268 142,888,550 14,169,032 15,697,415 11.0% 3,126,581 2,645,614 1,211,083 $48.62
Suburban 7,265 309,347,861 39,481,273 42,445,637 13.7% 2,281,721 1,725,065 2,198,199 $28.05
Totals 9,533 452,236,411 53,650,305 58,143,052 12.9% 5,408,302 4,370,679 3,409,282 $33.72


FIGURES AT A GLANCE

Existing Inventory Vacancy Net Deliveries UC Inventory Quoted
Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates
2010 4q 1,351 246,492,839 33,276,508 36,753,616 14.9% 1,571,761 0 0 12 2,995,147 $37.88
2010 3q 1,351 246,492,839 34,500,721 38,325,377 15.5% 1,247,535 3 582,536 11 2,920,147 $38.21
2010 2q 1,348 245,910,303 34,989,247 38,990,376 15.9% 2,045,320 6 2,123,468 14 3,502,683 $37.90
2010 1q 1,342 243,786,835 34,702,232 38,912,228 16.0% 900,465 8 1,482,487 18 5,098,673 $37.79
2009 4q 1,334 242,304,348 33,981,087 38,330,206 15.8% 909,660 5 1,010,843 25 6,461,160 $37.21
2009 3q 1,329 241,293,505 33,653,069 38,229,023 15.8% (282,729) 10 2,001,282 27 6,884,983 $36.89
2009 2q 1,319 239,292,223 31,780,530 35,945,012 15.0% 689,465 14 3,056,107 35 8,191,545 $36.86
2009 1q 1,305 236,236,116 29,687,634 33,578,370 14.2% 73,496 9 947,835 47 11,071,252 $37.79
2008 1,296 235,288,281 29,258,078 32,704,031 13.9% 2,443,524 61 8,895,520 54 11,901,549 $38.16
2007 1,235 226,392,761 23,430,361 26,252,035 11.6% 3,847,786 55 8,962,615 83 14,273,268 $37.60
2006 1,181 217,559,103 18,992,917 21,266,163 9.8% 6,878,356 58 9,233,777 77 14,811,213 $35.67
2005 1,123 208,325,326 16,077,675 18,910,742 9.1% 9,814,645 26 5,773,388 74 14,312,061 $33.51
2004 1,097 202,551,938 18,473,594 22,951,999 11.3% 8,885,404 30 5,874,952 52 12,927,838 $32.77
2003 1,067 196,676,986 20,901,843 25,962,451 13.2% 5,944,905 21 4,404,086 43 11,238,848 $30.58
2002 1,047 192,526,499 20,548,340 27,756,869 14.4% 4,929,113 60 10,857,295 36 10,215,413 $30.78
2001 987 181,669,204 14,106,406 21,828,687 12.0% 1,672,211 69 12,540,232 64 12,259,876 $31.85

2010 4q 4,524 168,010,360 17,468,255 18,439,690 11.0% (86,549) 2 41,000 10 414,135 $27.58
2010 3q 4,522 167,969,360 17,250,697 18,312,141 10.9% 175,481 1 7,000 8 155,135 $27.49
2010 2q 4,522 168,041,698 17,307,365 18,559,960 11.0% (354,614) 3 64,188 9 162,135 $27.55
2010 1q 4,519 167,977,510 16,874,684 18,141,158 10.8% 74,175 2 70,000 11 221,523 $27.43
2009 4q 4,517 167,907,510 16,776,589 18,145,333 10.8% 68,337 2 39,092 8 167,491 $27.44
2009 3q 4,515 167,868,418 16,489,809 18,174,578 10.8% (302,172) 11 300,419 9 191,583 $27.99
2009 2q 4,504 167,567,999 15,915,797 17,571,987 10.5% (475,787) 7 145,085 19 485,002 $27.99
2009 1q 4,498 167,423,913 15,302,023 16,952,114 10.1% (476,326) 5 140,065 24 608,295 $28.17
2008 4,493 167,283,848 14,934,185 16,335,723 9.8% (1,074,205) 27 455,407 27 708,360 $28.44
2007 4,472 167,300,321 13,856,013 15,277,991 9.1% (310,175) 50 1,246,222 22 536,150 $28.77
2006 4,424 166,212,463 12,680,796 13,879,958 8.4% 1,422,965 76 1,904,018 47 1,226,648 $27.87
2005 4,354 164,831,935 12,605,351 13,922,395 8.4% 3,208,262 39 1,107,087 80 2,225,340 $26.52
2004 4,316 163,809,978 14,238,436 16,108,700 9.8% 2,217,245 41 1,189,790 36 1,060,805 $25.71
2003 4,278 162,773,327 14,612,045 17,289,294 10.6% 621,419 21 458,980 31 1,096,716 $24.92
2002 4,261 162,659,380 14,300,612 17,796,766 10.9% (2,975,183) 52 1,106,191 17 548,250 $25.56
2001 4,214 162,492,364 11,472,722 14,654,567 9.0% (4,325,239) 76 1,916,083 50 1,080,341 $26.60

2010 4q 9,533 452,236,411 53,650,305 58,143,052 12.9% 1,552,152 2 41,000 22 3,409,282 $33.72
2010 3q 9,531 452,195,411 54,707,886 59,654,204 13.2% 1,267,671 4 589,536 19 3,075,282 $33.94
2010 2q 9,529 451,696,073 55,082,880 60,422,537 13.4% 1,602,294 9 2,187,656 23 3,664,818 $33.81
2010 1q 9,521 449,553,942 54,318,742 59,882,700 13.3% 986,185 10 1,552,487 29 5,320,196 $33.76
2009 4q 9,511 448,001,455 53,494,422 59,316,398 13.2% 955,253 7 1,049,935 33 6,628,651 $33.42
2009 3q 9,504 446,951,520 52,865,938 59,221,716 13.3% (735,609) 21 2,301,701 36 7,076,566 $33.43
2009 2q 9,483 444,649,819 50,312,766 56,184,406 12.6% 44,769 21 3,201,192 54 8,676,547 $33.35
2009 1q 9,463 441,449,626 47,447,881 53,028,982 12.0% (460,126) 14 1,087,900 71 11,679,547 $34.08
2008 9,450 440,362,973 46,585,553 51,482,203 11.7% 1,179,686 88 9,350,927 81 12,609,909 $34.42
2007 9,372 431,541,150 39,565,806 43,840,066 10.2% 3,075,652 105 10,208,837 105 14,809,418 $34.16
2006 9,276 421,869,037 33,652,725 37,243,605 8.8% 8,889,074 140 11,207,719 124 16,037,861 $32.45
2005 9,146 411,386,074 31,442,654 35,649,716 8.7% 13,309,242 66 6,881,575 158 16,565,788 $30.45
2004 9,088 404,840,709 35,917,563 42,413,593 10.5% 10,132,304 76 7,118,162 89 13,989,743 $29.78
2003 9,020 398,083,409 37,947,941 45,788,597 11.5% 6,162,046 46 4,899,566 79 12,388,984 $28.40
2002 8,988 394,445,691 37,519,638 48,312,925 12.2% 1,910,216 122 12,196,618 56 10,772,263 $28.69
2001 8,882 383,472,468 28,243,564 39,249,918 10.2% (2,919,688) 148 14,499,577 123 13,553,957 $29.76


LEASING ACTIVITY
Leasing Highlights in Select CoStar Markets

Color Coded by Vacancy Rate
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LEASING ACTIVITY
Historical Rental Rates

Based on Full-Service Equivalent Rental Rates
A B C Total Market
$45.00
$40.00
$35.00
Dollars/SF/Year
$30.00
$25.00
$20.00
$15.00
$10.00
$5.00
$0.00
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Vacancy by Available Space Type Vacancy by Class

Percent of All Vacant Space in Direct vs. Sublet Percent of All Vacant Space by Class
Washington United States Washington United States
8% 5% 5% 15%
32%
48% 37%
92% 63%
95%
Direct Sublet Direct Sublet Class A Class B Class C Class A Class B Class C
U.S. Rental Rate Comparison Future Space Available

Based on Full-Service Equivalent Rental Rates Space Scheduled to be Available for Occupancy*
Washington, D.C. United States 5.0
$40.00 4.39
4.5 4.27
$35.00 3.96
4.0
$30.00
3.5
Dollars/SF/Year
$25.00 3.0 2.71

Millions
$20.00 2.5
$15.00 2.0
1.57
$10.00 1.5
$5.00 1.0
0.50
0.5
$0.00
2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 0.0
3q 4q 1q 2q 3q 4q 1q 2q 3q 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q
Source: CoStar Property® * Includes Under Construction Spaces Source: CoStar Property®


LEASING ACTIVITY
Select Top Office Leases Based on Leased Square Footage For Deals Signed in 2010
Building Submarket SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company
1 Constitution Center Southwest 1,000,000 3rd Security Exchange Commission Direct Deal Cassidy Turley
2 5600 Fishers Ln* Rockville 801,550 4th U S Dept Of Health & Human Services Direct Deal Cushman & Wakefield, Inc.
3 Melpar Office Complex Merrifield 655,001 3rd Department of Defense Medical Command CB Richard Ellis Cushman & Wakefield, Inc.
4 12300 & 12310 Sunrise Valley Dr Reston 523,480 3rd Defense Intelligence Agency Direct Deal Cassidy Turley
5 425 Eye St NW East End 284,974 2nd Department of Veterans Affairs Studley Cassidy Turley
6 Sallie Mae Complex Reston 221,326 3rd Verisign, Inc. Cassidy Turley Jones Lang LaSalle
7 Station Place Phase III NoMa 200,216 1st Security Exchange Commission Direct Deal CB Richard Ellis
8 Montgomery Bldg* CBD 194,953 1st Wiley Rein LLP Cassidy Turley Vornado/Charles E. Smith
9 370 L’Enfant Promenade SW* Southwest 186,880 1st Administration for Children and Families Jones Lang LaSalle FD Partners
10 Patriots Plaza II Southwest 180,395 1st Federal Bureau of Investigation Direct Deal Trammell Crow Company
11 Fair Lakes Circle* Fairfax Center 166,152 3rd CGI -AMS CB Richard Ellis Lincoln Property Company
12 2291 Wood Oak Dr Herndon 160,389 4th Deltek, Inc N/A Brandywine Realty Trust
13 Hunters Branch 1* Vienna 153,974 2nd ICF International, Inc. Jones Lang LaSalle CB Richard Ellis
14 Union Square NoMa 148,000 2nd DC Government - Department of Health Direct Deal Akridge
15 1750 K St NW* CBD 143,926 1st Wiley, Rein & Fielding Cassidy Turley CB Richard Ellis
16 1850 Towers Crescent Plz Tysons Corner 141,892 1st MicroStrategy, Inc. Direct Deal Jones Lang LaSalle
17 500 N Capitol St NW Capitol Hill 141,109 4th McDermott Will & Emery LLP Studley Cassidy Turley
18 Half Street Capitol Riverfront 129,943 4th District Department of Transportation Direct Deal Monument Realty LLC
19 Venter Insitute Bldg V North Rockville 124,000 2nd J. Craig Venter Institute N/A HFF
20 1100 1st St NE NoMa 122,756 4th U.S. Dept of Veteran Affairs Direct Deal Tishman Speyer
21 Greentec 4 Greenbelt 120,000 3rd Trax International Sloan Street Advisors ITRA Cushman & Wakefield, Inc.
22 Dulles Overlook Herndon 114,309 1st Booz Allen Hamilton, Inc Jones Lang LaSalle Cambridge Property Group LLC
23 MetroPark VIII Springfield/Burke 110,449 2nd Science Applications International Corporation Jones Lang LaSalle Cushman & Wakefield, Inc.
24 Piedmont Pointe I North Bethesda/Potomac 107,871 4th Henry M Jackson Foundation N/A CB Richard Ellis
25 1750 Pennsylvania Ave NW* CBD 103,120 1st IRS Criminal Investigation Division N/A Vornado/Charles E. Smith
26 Lafayette Tower CBD 102,752 1st Fried, Frank, Harris, Shriver, & Jacobson LLP CB Richard Ellis Jones Lang LaSalle
27 717 14th St NW East End 100,806 3rd General Services Administration Direct Deal Woodmark
28 Presidents Park Bldg One* Herndon 96,340 1st Network Solutions LLC Larsen Commercial Real Estate/ONCOR Liberty Property Trust
29 Element 12420 Rockville 93,000 1st FDA Direct Deal Grubb & Ellis
30 Ridgetop III at Loudoun Tech Center Route 28 Corridor North 91,754 3rd NeuStar, Inc. Jones Lang LaSalle Lincoln Property Company
31 Reston Crossing West Reston 91,683 4th Sallie Mae Jones Lang LaSalle CB Richard Ellis
32 Centerpointe One Fairfax Center 90,774 2nd ASM Research, Inc. Newmark Knight Frank CB Richard Ellis
33 801 N Capitol St NE NoMa 87,813 2nd University District of Columbia CB Richard Ellis Cassidy Turley
34 Two Potomac Yard - North Tower Crystal City 84,958 2nd USAID CB Richard Ellis Jones Lang LaSalle
35 1801 K St NW CBD 83,126 4th KPMG LLP Jones Lang LaSalle Jones Lang LaSalle
36 Sentinel Square Ph I NoMa 82,173 2nd US Customs & Border Protection CB Richard Ellis Trammell Crow Company
37 Campus Pointe* Reston 81,618 4th Verizon Communications, Inc. N/A Brandywine Realty Trust
38 Dulles Corner Gateway Herndon 81,236 4th GeoEye CresaPartners CB Richard Ellis
39 MetroPark @ Springfield Metro VI Springfield/Burke 80,361 4th The Tauri Group Jones Lang LaSalle Cushman & Wakefield, Inc.
40 Polk Bldg Tysons Corner 79,833 1st Mitre Corporation Jones Lang LaSalle Transwestern

* Renewal


SALES ACTIVITY
The Optimist Sales Index Average of Two Highest Price/SF's and Two Lowest Cap Rates Per Quarter
Cap Rate Price/SF

8.0% $1,000
$900
7.0%
$800
6.0%
Cap Rate Percentage
$700
5.0%
Dollars/SF
$600
4.0% $500
$400
3.0%
$300
2.0%
$200
1.0%
$100
0.0% $0
2007 4q 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q 2010 3q
Source: CoStar COMPS®
Sales Volume & Price Sales Analysis by Building Size

Based on Office Building Sales of 15,000 SF and Larger Based on Office Building Sales From Oct. 2009 - Sept. 2010
Sales Volume Price/SF Bldg Size # RBA $ Volume Price/SF Cap Rate
$2,500 $500
$450
< 50,000 SF 173 1,471,780 $ 318,030,191 $ 216.09 7.74%
$2,000 $400
Millions of Sales Volume Dollars
$350
$1,500 $300
50K-249K SF 41 5,773,919 $ 1,543,885,300 $ 267.39 6.71%
Price/SF
$250
$1,000 $200
$150 250K-499K SF 10 3,371,249 $ 1,015,773,904 $ 301.30 7.77%

$500 $100
$50
$0 $0 >500K SF 2 1,121,689 $ 549,500,000 $ 489.89 6.10%

2007 1q 2007 3q 2008 1q 2008 3q 2009 1q 2009 3q 2010 1q 2010 3q
Source: CoStar COMPS® Source: CoStar COMPS®
U.S. Price/SF Comparison U.S. Cap Rate Comparison

Based on Office Building Sales of 15,000 SF and Larger Based on Office Building Sales of 15,000 SF and Larger
Washington US Washington US
$470 10.0%
$420 9.0%
$370
Cap Rate Percentage
8.0%
$320
Dollars per SF
$270 7.0%
$220 6.0%
$170
5.0%
$120
4.0%
$70
$20 3.0%
2007 2007 2008 2008 2009 2009 2010 2010 2007 2007 2008 2008 2009 2009 2010 2010
1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q
Source: CoStar COMPS® Source: CoStar COMPS®


SALES ACTIVITY
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Select Land Sales Based on Commercially Zoned Land Sales Occurring From Oct. 2009 - Dec. 2010
Bluemont Way, Reston 1716 Wilson Blvd, Arlington Fullerton Rd-Lots 3 & 4 Rd, Springfield
Sale Price: $20,250,000 Sale Price: $10,000,000 Sale Price: $6,057,372
Acres: 2.51 Acres: 1.05 Acres: 3.03
Price/SF: $185.15 Price/SF: $219.68 Price/SF: $45.89
Closing Date: 07/01/2010 Closing Date: 05/20/2010 Closing Date: 07/28/2010
Zoning: PRC Zoning: C-2 Zoning: C-4
Intended Use: Mixed Use Intended Use: Office Intended Use: Office Park
Buyer: Boston Properties Buyer: Skanska USA Commercial Development, InBuyer: Corporate Office Properties Trust
Seller: Kettler Seller: George Contis Seller: Dittmar Company
Fairfax Dr, Arlington 0 7th St NW, Washington 1818 14th St NW, Washington
Sale Price: $4,500,000 Sale Price: $3,388,845 Sale Price: $3,000,000
Acres: 0.86 Acres: 0.42 Acres: 0.08
Price/SF: $120.62 Price/SF: $184.52 Price/SF: $860.83
Closing Date: 06/15/2010 Closing Date: 07/30/2010 Closing Date: 01/19/2010
Zoning: C2 Zoning: C2B Zoning: C3A / FAR
Intended Use: Office Intended Use: Office Intended Use: Commercial
Buyer: Crimson Partners Buyer: Ellis Development Group LLC Buyer: The JBG Companies
Seller: WCI Communities, Inc. Seller: The District of Columbia Seller: Hae Yong Hong
Source: CoStar COMPS®


A L E X A N D R I A / I - 3 9 5 A R E A M A R K E T
MARKET HIGHLIGHTS – CLASS “A, B & C”
Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy
0.600 11.5%
0.500
11.0%
0.400
10.5%
0.300
Percent Vacant
Millions SF
0.200 10.0%
0.100 9.5%
0.000
9.0%
(0.100)
8.5%
(0.200)
(0.300) 8.0%
Vacant Space Quoted Rental Rates

Historical Analysis, All Classes Historical Analysis, All Classes
Direct SF Sublet SF $34.40

5.00
4.50 $34.20
4.00
$34.00
3.50
Dollars/SF/Year
Millions SF
3.00 $33.80
2.50
$33.60
2.00
1.50 $33.40
1.00
$33.20
0.50
0.00 $33.00
Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted

Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates
2010 4q 876 39,289,834 3,902,454 9.9% 224,880 0 0 1 15,000 $33.90
2010 3q 876 39,289,834 4,127,334 10.5% 13,659 0 0 1 15,000 $33.92
2010 2q 876 39,289,834 4,140,993 10.5% 204,920 0 0 1 15,000 $34.30
2010 1q 876 39,289,834 4,345,913 11.1% (74,512) 3 523,941 1 15,000 $33.94
2009 4q 873 38,765,893 3,747,460 9.7% 331,729 1 30,000 4 538,941 $34.01
2009 3q 872 38,735,893 4,049,189 10.5% (205,907) 0 0 4 553,941 $33.68
2009 2q 872 38,735,893 3,843,282 9.9% (229,115) 1 2,000 4 553,941 $33.49
2009 1q 871 38,733,893 3,612,167 9.3% 499,116 2 68,458 5 555,941 $34.17
2008 4q 869 38,665,435 4,042,825 10.5% 85,772 2 153,021 6 594,399 $34.54
2008 3q 868 38,530,875 3,994,037 10.4% (42,993) 0 0 6 631,223 $34.86
2008 2q 868 38,530,875 3,951,044 10.3% (15,656) 1 202,234 6 631,223 $34.78
2008 1q 867 38,328,641 3,733,154 9.7% 128,778 1 249,712 6 832,092 $34.18
2007 4q 867 38,080,839 3,614,130 9.5% 98,541 0 0 5 672,060 $33.24
2007 3q 868 38,278,643 3,910,475 10.2% 313,772 0 0 5 672,060 $33.44
2007 2q 868 38,278,643 4,224,247 11.0% 44,042 1 76,628 5 672,060 $32.99
2007 1q 867 38,202,015 4,191,661 11.0% (236,801) 1 11,542 4 619,529 $32.78


B E T H E S D A / C H E V Y C H A S E M A R K E T

0.400 14.0%
0.300 12.0%
0.200
10.0%
Percent Vacant
0.100
Millions SF
8.0%
0.000
6.0%
(0.100)
4.0%
(0.200)
(0.300) 2.0%
(0.400) 0.0%


1.60
1.40 $37.00
1.20
$36.00
Dollars/SF/Year
Millions SF
1.00
$35.00
0.80
0.60 $34.00
0.40
$33.00
0.20
0.00 $32.00

2010 4q 260 11,954,909 1,158,906 9.7% 177,822 0 0 0 0 $34.27
2010 3q 260 11,954,909 1,336,728 11.2% (20,984) 0 0 0 0 $33.98
2010 2q 260 11,954,909 1,315,744 11.0% 114,756 0 0 0 0 $34.47
2010 1q 260 11,954,909 1,430,500 12.0% (319,052) 0 0 0 0 $34.20
2009 4q 260 11,954,909 1,111,448 9.3% 4,075 0 0 0 0 $36.28
2009 3q 260 11,954,909 1,115,523 9.3% (166,817) 0 0 0 0 $36.30
2009 2q 260 11,954,909 948,706 7.9% 272,554 2 307,318 0 0 $36.44
2009 1q 258 11,647,591 913,942 7.8% (84,633) 1 4,300 2 307,318 $37.23
2008 4q 257 11,643,291 825,009 7.1% 111,562 1 5,400 3 311,618 $37.17
2008 3q 256 11,637,891 931,171 8.0% 13,086 0 0 4 317,018 $37.32
2008 2q 256 11,637,891 944,257 8.1% 88,105 0 0 2 304,536 $36.12
2008 1q 256 11,637,891 1,032,362 8.9% (14,510) 1 6,072 2 304,536 $36.27
2007 4q 255 11,631,819 1,011,780 8.7% (77,342) 0 0 3 310,608 $36.66
2007 3q 255 11,631,819 934,438 8.0% (6,590) 0 0 2 11,472 $33.93
2007 2q 255 11,631,819 927,848 8.0% (73,347) 0 0 1 6,072 $33.48
2007 1q 255 11,631,819 854,501 7.3% 170,594 0 0 0 0 $33.05


C A P I T O L H I L L A R E A M A R K E T

2.000 20.0%
18.0%
1.500
16.0%
14.0%
1.000
Percent Vacant
Millions SF
12.0%
0.500 10.0%
8.0%
0.000
6.0%
4.0%
(0.500)
2.0%
(1.000) 0.0%


7.00
$50.00
6.00
$49.00
5.00
Dollars/SF/Year
Millions SF
$48.00
4.00
$47.00
3.00
2.00 $46.00
1.00 $45.00
0.00 $44.00

2010 4q 455 33,038,182 5,415,972 16.4% 715,041 0 0 1 414,029 $49.79
2010 3q 455 33,038,182 6,131,013 18.6% 150,269 0 0 1 414,029 $49.11
2010 2q 455 33,038,182 6,281,282 19.0% 952,899 4 1,566,068 1 414,029 $49.14
2010 1q 452 31,517,639 5,713,638 18.1% 866,245 3 714,546 5 1,980,097 $48.10
2009 4q 449 30,803,093 5,865,337 19.0% 85,967 1 383,877 8 2,694,643 $47.46
2009 3q 448 30,419,216 5,567,427 18.3% (84,574) 2 670,337 9 3,078,520 $46.06
2009 2q 446 29,748,879 4,812,516 16.2% 158,471 3 1,029,530 11 3,748,857 $46.29
2009 1q 443 28,719,349 3,941,457 13.7% 4,021 1 2,847 14 4,778,387 $46.24
2008 4q 442 28,716,502 3,942,631 13.7% 231,147 1 243,221 15 4,781,234 $46.74
2008 3q 441 28,473,281 3,930,557 13.8% 93,008 1 335,870 16 5,024,455 $46.67
2008 2q 440 28,137,411 3,687,695 13.1% 521,625 0 0 17 5,360,325 $46.35
2008 1q 440 28,137,411 4,209,320 15.0% 239,080 0 0 10 3,041,381 $47.92
2007 4q 440 28,137,411 4,448,400 15.8% 1,343,450 1 1,350,000 9 2,952,835 $47.76
2007 3q 439 26,787,411 4,441,850 16.6% 1,338 1 221,066 10 4,302,835 $47.36
2007 2q 438 26,566,345 4,222,122 15.9% (742,150) 0 0 7 3,179,687 $47.02
2007 1q 439 26,570,701 3,484,328 13.1% (541,674) 2 491,520 7 3,179,687 $45.82


D O W N T O W N D C M A R K E T

1.000 12.0%
0.800
10.0%
0.600
0.400
8.0%
Percent Vacant
Millions SF
0.200
0.000 6.0%
(0.200)
4.0%
(0.400)
(0.600)
2.0%
(0.800)
(1.000) 0.0%


12.00
$50.50
10.00
$50.00
Dollars/SF/Year
8.00
Millions SF
$49.50
6.00
$49.00
4.00
$48.50
2.00 $48.00
0.00 $47.50

2010 4q 843 95,502,920 9,024,408 9.4% 172,111 0 0 4 1,071,083 $50.40
2010 3q 843 95,502,920 9,196,519 9.6% 445,283 1 365,000 3 996,083 $50.21
2010 2q 843 95,148,780 9,287,662 9.8% 119,537 0 0 4 1,361,083 $49.34
2010 1q 843 95,148,780 9,407,199 9.9% 120,301 0 0 3 1,192,045 $49.31
2009 4q 843 95,148,780 9,527,500 10.0% 98,477 0 0 3 1,192,045 $49.35
2009 3q 843 95,148,780 9,625,977 10.1% 287,360 2 511,188 3 1,192,045 $48.82
2009 2q 841 94,637,592 9,402,149 9.9% (20,989) 3 885,163 4 1,309,088 $48.64
2009 1q 838 93,752,429 8,495,997 9.1% (655,742) 1 244,812 7 2,194,251 $49.38
2008 4q 837 93,507,617 7,595,443 8.1% (799,891) 1 136,574 8 2,439,063 $49.60
2008 3q 838 93,405,952 6,693,887 7.2% 426,638 0 0 9 2,575,637 $49.19
2008 2q 838 93,405,952 7,120,525 7.6% 233,022 3 676,156 8 2,210,637 $49.29
2008 1q 836 92,790,703 6,738,298 7.3% (399,367) 1 242,366 10 2,453,893 $48.90
2007 4q 837 92,895,114 6,443,342 6.9% 95,552 2 715,758 11 2,696,259 $48.49
2007 3q 835 92,179,356 5,823,136 6.3% 216,027 0 0 12 3,076,854 $48.04
2007 2q 836 92,327,720 6,187,527 6.7% 51,073 1 187,937 11 2,826,509 $46.68
2007 1q 835 92,139,783 6,050,663 6.6% 566,868 1 90,000 10 2,453,603 $45.63


D U L L E S C O R R I D O R M A R K E T

2.000 25.0%
1.500
20.0%
1.000
Percent Vacant
Millions SF
15.0%
0.500
10.0%
0.000
5.0%
(0.500)
(1.000) 0.0%


10.00
$28.00
9.50
$27.50
Dollars/SF/Year
Millions SF
9.00 $27.00
$26.50
8.50
$26.00
8.00
$25.50
7.50 $25.00

2010 4q 737 54,254,515 9,189,270 16.9% (81,202) 0 0 1 120,000 $26.60
2010 3q 737 54,254,515 9,108,068 16.8% 378,562 1 7,000 1 120,000 $26.03
2010 2q 736 54,247,515 9,479,630 17.5% 466,397 1 525,000 2 127,000 $26.12
2010 1q 735 53,722,515 9,421,027 17.5% 78,224 0 0 3 652,000 $26.27
2009 4q 735 53,722,515 9,499,251 17.7% 155,666 1 159,500 2 532,000 $26.32
2009 3q 734 53,563,015 9,495,417 17.7% 437,525 1 235,436 3 691,500 $27.28
2009 2q 733 53,327,579 9,697,506 18.2% 130,779 1 12,303 3 919,936 $27.49
2009 1q 732 53,315,276 9,815,982 18.4% 413,922 0 0 4 932,239 $28.03
2008 4q 732 53,315,276 10,229,904 19.2% 231,800 2 93,515 4 932,239 $28.39
2008 3q 730 53,221,761 10,368,189 19.5% (521,617) 5 530,745 5 500,754 $29.40
2008 2q 725 52,691,016 9,315,827 17.7% 633,703 10 1,473,712 8 859,696 $29.46
2008 1q 715 51,217,304 8,475,818 16.5% (160,634) 6 1,049,261 16 2,056,084 $29.72
2007 4q 709 50,168,043 7,265,923 14.5% (225,807) 1 217,074 22 3,105,345 $29.90
2007 3q 708 49,950,969 6,823,042 13.7% 395,408 5 836,669 21 3,227,370 $29.73
2007 2q 703 49,114,300 6,381,781 13.0% 762,050 10 1,628,080 26 4,064,039 $30.02
2007 1q 693 47,486,220 5,515,751 11.6% 465,037 8 482,053 29 5,114,232 $28.89


E P R I N C E G E O R G E S C O U N T Y M A R K E T

0.180 20.0%
0.160 18.0%
0.140 16.0%
0.120
14.0%
Percent Vacant
0.100
Millions SF
12.0%
0.080
10.0%
0.060
8.0%
0.040
6.0%
0.020
0.000 4.0%
(0.020) 2.0%
(0.040) 0.0%


0.40
0.35 $25.00
0.30 $24.00
Dollars/SF/Year
Millions SF
0.25
$23.00
0.20
$22.00
0.15
$21.00
0.10
$20.00
0.05
0.00 $19.00

2010 4q 90 2,185,583 288,897 13.2% 4,361 0 0 0 0 $21.57
2010 3q 90 2,185,583 293,258 13.4% 27,124 0 0 0 0 $22.01
2010 2q 90 2,185,583 320,382 14.7% 34,605 0 0 0 0 $23.02
2010 1q 90 2,185,583 354,987 16.2% (132) 0 0 0 0 $23.41
2009 4q 90 2,185,583 354,855 16.2% 6,641 0 0 0 0 $24.63
2009 3q 90 2,185,583 361,496 16.5% 15,491 0 0 0 0 $24.51
2009 2q 90 2,185,583 376,987 17.2% (11,382) 0 0 0 0 $24.70
2009 1q 90 2,185,583 365,605 16.7% (27,417) 1 151,892 0 0 $24.81
2008 4q 89 2,033,691 186,296 9.2% 99,614 2 100,000 1 151,892 $24.38
2008 3q 87 1,933,691 185,910 9.6% (13,238) 0 0 3 251,892 $25.22
2008 2q 87 1,933,691 172,672 8.9% 64,725 0 0 3 251,892 $24.76
2008 1q 87 1,933,691 237,397 12.3% 22,911 0 0 3 251,892 $27.38
2007 4q 87 1,933,691 260,308 13.5% 10,051 2 66,560 2 100,000 $27.87
2007 3q 85 1,867,131 203,799 10.9% (13,487) 0 0 4 166,560 $28.68
2007 2q 85 1,867,131 190,312 10.2% 94,495 0 0 4 166,560 $28.69
2007 1q 85 1,867,131 284,807 15.3% 15,296 1 40,800 4 166,560 $29.01


E A S T F A L L S C H U R C H M A R K E T

0.020 8.0%
7.0%
0.010
6.0%
0.000
Percent Vacant
5.0%
Millions SF
(0.010) 4.0%
3.0%
(0.020)
2.0%
(0.030)
1.0%
(0.040) 0.0%


0.07
$32.50
0.06
$32.00
0.05 $31.50
Dollars/SF/Year
Millions SF
0.04 $31.00
$30.50
0.03
$30.00
0.02
$29.50
0.01 $29.00
0.00 $28.50

2010 4q 52 924,915 65,393 7.1% (44) 0 0 0 0 $32.05
2010 3q 52 924,915 65,349 7.1% (36,140) 0 0 0 0 $32.44
2010 2q 52 924,915 29,209 3.2% (3,486) 0 0 0 0 $32.17
2010 1q 52 924,915 25,723 2.8% (1,397) 0 0 0 0 $29.90
2009 4q 52 924,915 24,326 2.6% (10,453) 0 0 0 0 $30.20
2009 3q 52 924,915 13,873 1.5% 5,000 0 0 0 0 $30.08
2009 2q 52 924,915 18,873 2.0% (1,024) 0 0 0 0 $32.19
2009 1q 52 924,915 17,849 1.9% 3,000 0 0 0 0 $32.19
2008 4q 52 924,915 20,849 2.3% (7,079) 0 0 0 0 $33.29
2008 3q 52 924,915 13,770 1.5% 0 0 0 0 0 $33.29
2008 2q 52 924,915 13,770 1.5% (200) 0 0 0 0 $32.65
2008 1q 52 924,915 13,570 1.5% 3,951 0 0 0 0 $30.82
2007 4q 52 924,915 17,521 1.9% 6,100 0 0 0 0 $32.41
2007 3q 52 924,915 23,621 2.6% 0 0 0 0 0 $32.41
2007 2q 52 924,915 23,621 2.6% 14,039 0 0 0 0 $32.53
2007 1q 52 924,915 37,660 4.1% (530) 0 0 0 0 $31.82


F R E D E R I C K M A R K E T

0.600 16.0%
0.500 14.0%
0.400 12.0%
Percent Vacant
0.300 10.0%
Millions SF
0.200 8.0%
0.100 6.0%
0.000 4.0%
(0.100) 2.0%
(0.200) 0.0%


1.10
$24.00
1.05
$23.80
1.00 $23.60
Dollars/SF/Year
Millions SF
0.95 $23.40
$23.20
0.90
$23.00
0.85
$22.80
0.80 $22.60
0.75 $22.40

2010 4q 529 7,827,857 1,022,901 13.1% (5,545) 0 0 1 33,000 $23.52
2010 3q 529 7,827,857 1,017,356 13.0% 30,123 0 0 1 33,000 $23.02
2010 2q 529 7,827,857 1,047,479 13.4% (5,439) 1 34,788 1 33,000 $23.53
2010 1q 528 7,793,069 1,007,252 12.9% (19,750) 0 0 2 67,788 $23.33
2009 4q 528 7,793,069 987,502 12.7% (44,667) 0 0 1 34,788 $23.51
2009 3q 528 7,793,069 942,835 12.1% (35,431) 1 7,000 1 34,788 $23.66
2009 2q 527 7,786,069 900,404 11.6% 140,689 2 127,166 2 41,788 $24.04
2009 1q 525 7,658,903 913,927 11.9% (50,434) 0 0 4 168,954 $23.81
2008 4q 525 7,658,903 863,493 11.3% 64,129 2 136,151 4 168,954 $24.15
2008 3q 524 7,525,752 794,471 10.6% 58,864 0 0 6 305,105 $23.94
2008 2q 524 7,525,752 853,335 11.3% 63,193 8 142,540 4 263,317 $23.96
2008 1q 516 7,383,212 773,988 10.5% 62,301 2 24,000 12 405,857 $24.02
2007 4q 514 7,359,212 812,289 11.0% (137,634) 2 13,850 7 272,691 $24.08
2007 3q 512 7,345,362 660,805 9.0% (18,934) 0 0 8 160,390 $24.09
2007 2q 512 7,345,362 641,871 8.7% 144,773 2 5,624 7 158,390 $24.13
2007 1q 510 7,339,738 781,020 10.6% 523,197 7 462,235 8 162,014 $23.98


G E O R G E T O W N / U P T O W N M A R K E T

0.150 10.0%
0.100 9.0%
0.050 8.0%
0.000 7.0%
Percent Vacant
Millions SF
(0.050) 6.0%
(0.100) 5.0%
(0.150) 4.0%
(0.200) 3.0%
(0.250) 2.0%
(0.300) 1.0%
(0.350) 0.0%


1.80
$38.50
1.60
1.40 $38.00
Dollars/SF/Year
1.20 $37.50
Millions SF
1.00
$37.00
0.80
$36.50
0.60
$36.00
0.40
$35.50
0.20
0.00 $35.00

2010 4q 800 16,580,198 1,515,539 9.1% (52,306) 0 0 1 140,000 $37.18
2010 3q 800 16,580,198 1,463,233 8.8% 75,531 0 0 1 140,000 $36.54
2010 2q 800 16,580,198 1,538,764 9.3% (101,923) 0 0 1 140,000 $37.23
2010 1q 800 16,580,198 1,436,841 8.7% 3,735 0 0 1 140,000 $37.28
2009 4q 800 16,580,198 1,440,576 8.7% (953) 0 0 1 140,000 $37.51
2009 3q 800 16,580,198 1,439,623 8.7% (149,094) 0 0 0 0 $37.45
2009 2q 800 16,580,198 1,290,529 7.8% 15,526 0 0 0 0 $37.92
2009 1q 800 16,580,198 1,306,055 7.9% (296,115) 0 0 0 0 $38.68
2008 4q 800 16,580,198 1,009,940 6.1% (66,587) 0 0 0 0 $39.72
2008 3q 800 16,580,198 943,353 5.7% (9,893) 0 0 0 0 $39.65
2008 2q 800 16,580,198 933,460 5.6% 99,778 0 0 0 0 $38.98
2008 1q 800 16,580,198 1,033,238 6.2% 20,366 0 0 0 0 $39.14
2007 4q 800 16,580,198 1,053,604 6.4% (62,193) 0 0 0 0 $37.25
2007 3q 800 16,580,198 991,411 6.0% (86,682) 0 0 0 0 $36.75
2007 2q 800 16,580,198 904,729 5.5% 35,846 0 0 0 0 $35.63
2007 1q 800 16,580,198 940,575 5.7% (78,189) 2 19,023 0 0 $34.56


G R E A T E R F A I R F A X C O U N T Y M A R K E T

0.600 16.0%
14.0%
0.400
12.0%
0.200
Percent Vacant
10.0%
Millions SF
0.000 8.0%
6.0%
(0.200)
4.0%
(0.400)
2.0%
(0.600) 0.0%


10.00
9.00 $29.00
8.00 $28.80
7.00
Dollars/SF/Year
$28.60
Millions SF
6.00
$28.40
5.00
4.00 $28.20
3.00
$28.00
2.00
$27.80
1.00
0.00 $27.60

2010 4q 1,136 60,899,420 9,156,520 15.0% 116,338 0 0 0 0 $28.95
2010 3q 1,136 60,899,420 9,272,858 15.2% (43,597) 0 0 0 0 $28.66
2010 2q 1,136 60,899,420 9,229,261 15.2% (329,190) 1 12,700 0 0 $28.72
2010 1q 1,135 60,886,720 8,887,371 14.6% (396,153) 0 0 1 12,700 $28.16
2009 4q 1,135 60,886,720 8,491,218 13.9% (159,689) 1 295,000 1 12,700 $28.17
2009 3q 1,134 60,591,720 8,036,529 13.3% 459,966 4 323,469 2 307,700 $28.45
2009 2q 1,130 60,268,251 8,173,026 13.6% (449,805) 0 0 6 631,169 $28.37
2009 1q 1,130 60,268,251 7,723,221 12.8% (344,129) 1 43,250 5 618,469 $29.06
2008 4q 1,129 60,225,001 7,335,842 12.2% (361,793) 1 323,698 6 661,719 $29.83
2008 3q 1,128 59,901,303 6,650,351 11.1% (184,153) 1 183,353 7 985,417 $30.25
2008 2q 1,127 59,717,950 6,282,845 10.5% 30,801 0 0 6 996,648 $30.56
2008 1q 1,127 59,717,950 6,313,646 10.6% (178,842) 4 487,456 6 996,648 $30.20
2007 4q 1,123 59,230,494 5,647,348 9.5% 45,452 1 20,462 9 1,355,104 $30.36
2007 3q 1,123 59,338,989 5,801,295 9.8% (520,184) 2 105,735 8 1,037,316 $30.12
2007 2q 1,121 59,233,254 5,175,376 8.7% 162,976 0 0 10 1,143,051 $29.82
2007 1q 1,121 59,233,254 5,338,352 9.0% (435,033) 0 0 7 926,698 $29.08


I - 2 7 0 C O R R I D O R M A R K E T

0.600 18.0%
16.0%
0.400
14.0%
0.200 12.0%
Percent Vacant
Millions SF
10.0%
0.000
8.0%
(0.200) 6.0%
4.0%
(0.400)
2.0%
(0.600) 0.0%


8.00
$28.60
7.00
$28.40
6.00
$28.20
Dollars/SF/Year
Millions SF
5.00
$28.00
4.00
$27.80
3.00 $27.60
2.00 $27.40
1.00 $27.20
0.00 $27.00

2010 4q 745 41,881,838 6,014,584 14.4% 18,228 1 20,000 1 358,440 $27.58
2010 3q 744 41,861,838 6,012,812 14.4% 301,689 0 0 2 378,440 $27.72
2010 2q 745 41,941,176 6,393,839 15.2% 60,656 0 0 2 378,440 $27.69
2010 1q 745 41,941,176 6,454,495 15.4% 500,914 0 0 1 20,000 $27.91
2009 4q 745 41,941,176 6,955,409 16.6% 153,459 1 144,928 0 0 $28.30
2009 3q 744 41,796,248 6,963,940 16.7% (445,769) 2 201,794 1 144,928 $28.54
2009 2q 742 41,594,454 6,316,377 15.2% (161,539) 4 542,462 3 346,722 $28.27
2009 1q 738 41,051,992 5,612,376 13.7% (162,364) 0 0 7 889,184 $28.34
2008 4q 738 41,051,992 5,450,012 13.3% 17,492 1 156,508 7 889,184 $28.62
2008 3q 737 40,895,484 5,310,996 13.0% 20,267 1 200,405 8 1,045,692 $29.15
2008 2q 737 40,739,893 5,175,672 12.7% (148,926) 2 241,985 7 1,216,502 $28.98
2008 1q 735 40,497,908 4,784,761 11.8% 62,246 3 286,788 9 1,458,487 $28.81
2007 4q 733 40,229,446 4,578,545 11.4% 331,587 4 488,544 9 1,233,148 $28.07
2007 3q 731 39,770,380 4,451,066 11.2% (26,917) 2 411,165 11 1,374,230 $28.28
2007 2q 729 39,359,215 4,012,984 10.2% 65,019 0 0 12 1,628,887 $27.85
2007 1q 729 39,359,215 4,078,003 10.4% (343,492) 1 30,000 8 1,283,902 $27.68


L E E S B U R G / R O U T E 7 C O R R I D O R M A R K E T

0.450 20.0%
0.400 18.0%
0.350 16.0%
0.300 14.0%
Percent Vacant
Millions SF
0.250 12.0%
0.200 10.0%
0.150 8.0%
0.100 6.0%
0.050 4.0%
0.000 2.0%
(0.050) 0.0%


1.60
$28.00
1.40
$27.50
1.20
Dollars/SF/Year
$27.00
Millions SF
1.00
$26.50
0.80
0.60 $26.00
0.40 $25.50
0.20 $25.00
0.00 $24.50

2010 4q 365 7,327,545 1,370,196 18.7% (17,752) 0 0 1 11,303 $25.84
2010 3q 365 7,327,545 1,352,444 18.5% (13,264) 0 0 1 11,303 $26.14
2010 2q 365 7,327,545 1,339,180 18.3% 42,753 1 16,700 1 11,303 $26.29
2010 1q 364 7,310,845 1,365,233 18.7% (19,199) 1 121,000 2 28,003 $27.39
2009 4q 363 7,189,845 1,225,034 17.0% 45,974 1 27,538 3 149,003 $27.62
2009 3q 362 7,162,307 1,243,470 17.4% 39,154 3 30,900 4 176,541 $27.70
2009 2q 359 7,131,407 1,251,724 17.6% (5,666) 2 52,134 7 207,441 $28.22
2009 1q 357 7,079,273 1,193,924 16.9% 123,898 4 408,607 9 259,575 $27.11
2008 4q 353 6,670,666 909,215 13.6% 14,534 1 90,200 12 640,644 $27.57
2008 3q 352 6,580,466 833,549 12.7% 76,706 1 95,000 13 730,844 $27.73
2008 2q 351 6,485,466 815,255 12.6% 57,169 1 30,000 12 701,244 $27.56
2008 1q 350 6,455,466 842,424 13.0% 81,932 4 164,000 7 547,110 $27.98
2007 4q 346 6,291,466 760,356 12.1% 113,130 3 220,674 10 699,807 $28.02
2007 3q 343 6,070,792 652,812 10.8% 68,701 0 0 9 509,674 $28.46
2007 2q 343 6,070,792 721,513 11.9% 71,447 3 178,581 9 509,674 $28.60
2007 1q 340 5,892,211 614,379 10.4% 12,426 2 50,000 9 619,255 $28.20


M A N A S S A S / R O U T E 2 9 / I - 6 6 M A R K E T

0.400 16.0%
0.350 14.0%
0.300
12.0%
0.250
Percent Vacant
10.0%
Millions SF
0.200
8.0%
0.150
6.0%
0.100
4.0%
0.050
0.000 2.0%
(0.050) 0.0%


0.90
$24.00
0.80
$23.50
0.70
$23.00
Dollars/SF/Year
0.60
Millions SF
$22.50
0.50
$22.00
0.40
0.30 $21.50
0.20 $21.00
0.10 $20.50
0.00 $20.00

2010 4q 347 5,877,835 774,235 13.2% (19,435) 0 0 0 0 $21.53
2010 3q 347 5,877,835 754,800 12.8% 24,957 0 0 0 0 $21.69
2010 2q 347 5,877,835 779,757 13.3% 37,942 0 0 0 0 $22.09
2010 1q 347 5,877,835 817,699 13.9% (25,956) 1 20,000 0 0 $22.05
2009 4q 346 5,857,835 771,743 13.2% (3,522) 0 0 1 20,000 $22.02
2009 3q 346 5,857,835 768,221 13.1% 173,084 2 270,000 1 20,000 $22.63
2009 2q 344 5,587,835 671,305 12.0% (14,079) 1 32,000 3 290,000 $23.13
2009 1q 343 5,555,835 625,226 11.3% 49,170 0 0 4 322,000 $23.97
2008 4q 343 5,555,835 674,396 12.1% 62,375 0 0 3 232,000 $23.99
2008 3q 343 5,555,835 736,771 13.3% 33,775 1 76,136 3 232,000 $24.13
2008 2q 342 5,479,699 694,410 12.7% 33,321 0 0 4 308,136 $23.86
2008 1q 342 5,479,699 727,731 13.3% (30,801) 0 0 3 288,136 $24.35
2007 4q 342 5,479,699 696,930 12.7% 307,135 4 334,454 1 76,136 $24.38
2007 3q 338 5,145,245 669,611 13.0% 21,785 1 54,000 5 410,590 $24.84
2007 2q 337 5,091,245 637,396 12.5% 61,985 3 134,300 5 388,454 $25.05
2007 1q 334 4,956,945 565,081 11.4% 56,283 5 149,800 8 522,754 $25.74


N P R I N C E G E O R G E S C O U N T Y M A R K E T

0.400 20.0%
0.300 18.0%
0.200 16.0%
0.100 14.0%
Percent Vacant
Millions SF
0.000 12.0%
(0.100) 10.0%
(0.200) 8.0%
(0.300) 6.0%
(0.400) 4.0%
(0.500) 2.0%
(0.600) 0.0%


3.70
3.60 $22.00
3.50
$21.50
3.40
Dollars/SF/Year
Millions SF
3.30 $21.00
3.20
$20.50
3.10
3.00 $20.00
2.90
$19.50
2.80
2.70 $19.00

2010 4q 665 19,117,178 3,516,308 18.4% 57,669 0 0 0 0 $20.21
2010 3q 665 19,117,178 3,573,977 18.7% (74,473) 0 0 0 0 $20.19
2010 2q 665 19,117,178 3,499,504 18.3% 40,318 0 0 0 0 $20.33
2010 1q 665 19,117,178 3,539,822 18.5% 79,728 1 123,000 0 0 $20.34
2009 4q 664 18,994,178 3,496,550 18.4% (12,659) 1 9,092 1 123,000 $20.39
2009 3q 663 18,985,086 3,474,799 18.3% (72,631) 1 5,000 2 132,092 $21.47
2009 2q 662 18,980,086 3,397,168 17.9% (112,165) 0 0 3 137,092 $21.60
2009 1q 662 18,980,086 3,285,003 17.3% 106,498 0 0 2 128,000 $21.93
2008 4q 662 18,980,086 3,391,501 17.9% 12,967 0 0 2 128,000 $22.09
2008 3q 662 18,980,086 3,404,468 17.9% (7,216) 2 67,300 1 123,000 $22.25
2008 2q 660 18,912,786 3,329,952 17.6% 2,338 0 0 3 190,300 $22.11
2008 1q 660 18,912,786 3,332,290 17.6% (467,251) 3 23,796 2 67,300 $22.31
2007 4q 657 18,888,990 2,841,243 15.0% 144,754 1 120,000 5 91,096 $22.10
2007 3q 656 18,768,990 2,865,997 15.3% (217,427) 0 0 5 168,796 $22.51
2007 2q 656 18,768,990 2,648,570 14.1% 353,989 3 162,333 5 168,796 $22.47
2007 1q 653 18,606,657 2,840,226 15.3% (163,182) 2 26,524 4 282,333 $22.46


N O R T H E A S T / S O U T H E A S T M A R K E T

0.080 14.0%
0.060
12.0%
0.040
10.0%
0.020
Percent Vacant
Millions SF
0.000 8.0%
(0.020) 6.0%
(0.040)
4.0%
(0.060)
2.0%
(0.080)
(0.100) 0.0%


0.35
$30.00
0.30
$25.00
0.25
Dollars/SF/Year
Millions SF
$20.00
0.20
$15.00
0.15
0.10 $10.00
0.05 $5.00
0.00 $0.00

2010 4q 215 2,405,342 294,930 12.3% (8,499) 0 0 0 0 $22.74
2010 3q 215 2,405,342 286,431 11.9% (13,590) 0 0 0 0 $22.44
2010 2q 215 2,405,342 272,841 11.3% (75,213) 0 0 0 0 $21.81
2010 1q 215 2,405,342 197,628 8.2% (52,513) 0 0 0 0 $22.46
2009 4q 215 2,405,342 145,115 6.0% 9,807 0 0 0 0 $26.19
2009 3q 215 2,405,342 154,922 6.4% (6,371) 0 0 0 0 $31.54
2009 2q 215 2,405,342 148,551 6.2% (10,265) 0 0 0 0 $33.05
2009 1q 215 2,405,342 138,286 5.7% 16,293 0 0 0 0 $32.63
2008 4q 216 2,406,589 155,826 6.5% 47,124 1 48,000 0 0 $32.39
2008 3q 215 2,358,589 154,950 6.6% 19,050 0 0 1 48,000 $32.52
2008 2q 215 2,358,589 174,000 7.4% 31,677 0 0 1 48,000 $33.54
2008 1q 215 2,358,589 205,677 8.7% 27,192 0 0 1 48,000 $33.25
2007 4q 215 2,358,589 232,869 9.9% (31,900) 1 63,000 0 0 $38.33
2007 3q 214 2,295,589 137,969 6.0% 7,980 0 0 1 63,000 $38.21
2007 2q 214 2,295,589 145,949 6.4% (43,930) 0 0 1 63,000 $37.11
2007 1q 214 2,295,589 102,019 4.4% (24,352) 0 0 1 63,000 $33.05


R - B C O R R I D O R M A R K E T

1.000 10.0%
9.0%
0.800
8.0%
0.600
7.0%
Percent Vacant
0.400
Millions SF
6.0%
0.200 5.0%
4.0%
0.000
3.0%
(0.200)
2.0%
(0.400)
1.0%
(0.600) 0.0%


2.50
$40.00
2.00
$39.00
Dollars/SF/Year
Millions SF
1.50
$38.00
1.00
$37.00
0.50 $36.00
0.00 $35.00

2010 4q 181 23,266,474 1,658,174 7.1% 119,447 0 0 3 797,315 $40.52
2010 3q 181 23,266,474 1,777,621 7.6% 226,715 2 217,536 3 797,315 $40.61
2010 2q 179 23,048,938 1,786,800 7.8% 17,600 0 0 5 1,014,851 $40.02
2010 1q 179 23,048,938 1,804,400 7.8% 198,533 0 0 5 1,014,851 $39.59
2009 4q 179 23,048,938 2,002,933 8.7% 168,806 0 0 5 1,014,851 $39.03
2009 3q 179 23,048,938 2,171,739 9.4% (455,374) 0 0 4 662,111 $38.60
2009 2q 179 23,048,938 1,716,365 7.4% 326,158 0 0 3 361,536 $37.37
2009 1q 179 23,048,938 2,042,523 8.9% (307,534) 0 0 2 217,536 $37.36
2008 4q 179 23,048,938 1,734,989 7.5% 139,854 0 0 2 217,536 $37.56
2008 3q 179 23,048,938 1,874,843 8.1% 82,006 0 0 2 217,536 $37.40
2008 2q 179 23,048,938 1,956,849 8.5% (406,002) 0 0 0 0 $36.33
2008 1q 179 23,048,938 1,550,847 6.7% 828,180 1 633,908 0 0 $36.18
2007 4q 178 22,415,030 1,745,119 7.8% 227,713 1 177,046 1 633,908 $35.99
2007 3q 177 22,237,984 1,795,786 8.1% (84,870) 0 0 2 810,954 $35.24
2007 2q 178 22,247,984 1,720,916 7.7% 66,226 1 52,553 2 810,954 $34.69
2007 1q 177 22,195,431 1,734,589 7.8% 129,169 2 288,595 3 863,507 $34.28


S P R I N C E G E O R G E S C O U N T Y M A R K E T

0.300 25.0%
0.200
20.0%
0.100
Percent Vacant
0.000
Millions SF
15.0%
(0.100)
10.0%
(0.200)
(0.300)
5.0%
(0.400)
(0.500) 0.0%


1.20
$24.00
1.00
$23.50
Dollars/SF/Year
0.80 $23.00
Millions SF
$22.50
0.60
$22.00
0.40
$21.50
0.20
$21.00
0.00 $20.50

2010 4q 285 4,882,565 948,720 19.4% 64,922 1 21,000 0 0 $22.09
2010 3q 284 4,861,565 992,642 20.4% (35,165) 0 0 1 21,000 $21.96
2010 2q 284 4,861,565 957,477 19.7% (4,062) 0 0 1 21,000 $21.78
2010 1q 284 4,861,565 953,415 19.6% (3,861) 0 0 1 21,000 $22.06
2009 4q 284 4,861,565 949,554 19.5% (18,679) 0 0 0 0 $22.25
2009 3q 284 4,861,565 930,875 19.1% (451,468) 0 0 0 0 $22.30
2009 2q 284 4,861,565 479,407 9.9% 18,319 0 0 0 0 $23.51
2009 1q 284 4,861,565 497,726 10.2% 188,772 0 0 0 0 $24.02
2008 4q 284 4,861,565 686,498 14.1% 11,998 0 0 0 0 $24.23
2008 3q 284 4,861,565 698,496 14.4% 68,692 2 107,753 0 0 $24.65
2008 2q 282 4,753,812 659,435 13.9% (3,560) 2 150,000 2 107,753 $24.67
2008 1q 280 4,603,812 505,875 11.0% 22,389 0 0 4 257,753 $24.86
2007 4q 280 4,603,812 528,264 11.5% (37,596) 0 0 4 257,753 $24.86
2007 3q 280 4,603,812 490,668 10.7% (164,604) 0 0 4 257,753 $25.13
2007 2q 280 4,603,812 326,064 7.1% 79,017 0 0 4 257,753 $24.89
2007 1q 280 4,603,812 405,081 8.8% 5,293 0 0 4 257,753 $24.90


S E F A I R F A X C O U N T Y M A R K E T

0.200 14.0%
12.0%
0.150
10.0%
0.100
Percent Vacant
Millions SF
8.0%
0.050
6.0%
0.000
4.0%
(0.050)
2.0%
(0.100) 0.0%


0.90
0.80 $28.00
0.70
$27.00
Dollars/SF/Year
0.60
Millions SF
0.50
$26.00
0.40
0.30 $25.00
0.20
$24.00
0.10
0.00 $23.00

2010 4q 253 7,122,575 844,972 11.9% (38,259) 0 0 5 394,280 $28.46
2010 3q 253 7,122,575 806,713 11.3% (80,306) 0 0 1 94,280 $26.71
2010 2q 253 7,122,575 726,407 10.2% (14,621) 0 0 1 94,280 $26.78
2010 1q 253 7,122,575 711,786 10.0% 10,714 0 0 1 94,280 $25.63
2009 4q 253 7,122,575 722,500 10.1% 39,187 0 0 1 94,280 $24.94
2009 3q 253 7,122,575 761,687 10.7% 62,906 0 0 0 0 $25.17
2009 2q 253 7,122,575 824,593 11.6% (13,009) 1 156,000 0 0 $25.45
2009 1q 252 6,966,575 655,584 9.4% 27,415 1 47,956 1 156,000 $25.52
2008 4q 251 6,918,619 635,043 9.2% 62,516 1 10,000 2 203,956 $27.04
2008 3q 250 6,908,619 687,559 10.0% (8,748) 0 0 3 213,956 $27.36
2008 2q 250 6,908,619 678,811 9.8% 117,785 0 0 2 57,956 $24.80
2008 1q 250 6,908,619 796,596 11.5% (83,540) 0 0 2 57,956 $24.41
2007 4q 250 6,908,619 713,056 10.3% (62,639) 0 0 1 47,956 $24.53
2007 3q 250 6,908,619 650,417 9.4% (41,294) 0 0 0 0 $24.41
2007 2q 250 6,908,619 609,123 8.8% 49,781 0 0 0 0 $24.86
2007 1q 250 6,908,619 658,904 9.5% (12,389) 0 0 0 0 $24.52


S E M O N T G O M E R Y C O U N T Y M A R K E T

0.150 12.0%
0.100 10.0%
0.050 8.0%
Percent Vacant
Millions SF
0.000 6.0%
(0.050) 4.0%
(0.100) 2.0%
(0.150) 0.0%


1.60
1.40 $27.50
1.20
$27.00
Dollars/SF/Year
Millions SF
1.00
$26.50
0.80
0.60 $26.00
0.40
$25.50
0.20
0.00 $25.00

2010 4q 367 12,890,450 1,287,026 10.0% 114,422 0 0 0 0 $26.06
2010 3q 367 12,890,450 1,401,448 10.9% (107,545) 0 0 0 0 $26.29
2010 2q 367 12,890,450 1,293,903 10.0% (13,312) 0 0 0 0 $26.26
2010 1q 367 12,890,450 1,280,591 9.9% (21,436) 1 50,000 0 0 $26.36
2009 4q 366 12,840,450 1,209,155 9.4% 55,110 0 0 1 50,000 $26.61
2009 3q 366 12,840,450 1,264,265 9.8% (102,485) 0 0 1 50,000 $26.81
2009 2q 366 12,840,450 1,161,780 9.0% 7,037 1 55,116 1 50,000 $27.65
2009 1q 365 12,785,334 1,113,701 8.7% (44,661) 0 0 2 105,116 $27.57
2008 4q 365 12,785,334 1,069,040 8.4% (33,661) 0 0 2 105,116 $28.30
2008 3q 365 12,785,334 1,035,379 8.1% (96,323) 0 0 2 105,116 $27.99
2008 2q 365 12,785,334 939,056 7.3% (103,865) 0 0 2 105,116 $27.93
2008 1q 365 12,785,334 835,191 6.5% (129,358) 0 0 2 105,116 $27.11
2007 4q 365 12,785,334 705,833 5.5% (11,066) 1 28,500 1 50,000 $26.66
2007 3q 364 12,756,834 666,267 5.2% (71,299) 1 5,500 2 78,500 $25.97
2007 2q 363 12,751,334 589,468 4.6% 45,730 0 0 3 84,000 $25.40
2007 1q 363 12,751,334 635,198 5.0% (123,792) 0 0 2 55,500 $25.43


W I N C H E S T E R C I T Y M A R K E T

0.050 16.0%
14.0%
0.000
12.0%
(0.050)
Percent Vacant
10.0%
Millions SF
(0.100) 8.0%
6.0%
(0.150)
4.0%
(0.200)
2.0%
(0.250) 0.0%


0.25
$21.00
0.20 $20.50
Dollars/SF/Year
$20.00
Millions SF
0.15
$19.50
0.10 $19.00
$18.50
0.05
$18.00
0.00 $17.50

2010 4q 112 1,790,344 196,251 11.0% (8,658) 0 0 1 4,800 $18.81
2010 3q 112 1,790,344 187,593 10.5% (8,992) 0 0 1 4,800 $19.39
2010 2q 112 1,790,344 178,601 10.0% 4,205 0 0 1 4,800 $19.57
2010 1q 112 1,790,344 182,806 10.2% 36,058 0 0 0 0 $19.39
2009 4q 112 1,790,344 218,864 12.2% (5,830) 0 0 0 0 $19.94
2009 3q 112 1,790,344 213,034 11.9% 20,003 1 24,944 0 0 $20.21
2009 2q 111 1,765,400 208,093 11.8% 3,303 0 0 1 24,944 $20.77
2009 1q 111 1,765,400 211,396 12.0% 29,473 0 0 1 24,944 $21.21
2008 4q 111 1,765,400 240,869 13.6% (207,684) 1 19,379 1 24,944 $22.24
2008 3q 110 1,746,021 13,806 0.8% 0 0 0 1 19,379 $0.00
2008 2q 110 1,746,021 13,806 0.8% 0 0 0 1 19,379 $0.00
2008 1q 110 1,746,021 13,806 0.8% 0 0 0 1 19,379 $0.00
2007 4q 110 1,746,021 13,806 0.8% 6,000 1 6,000 0 0 $0.00
2007 3q 109 1,740,021 13,806 0.8% 15,000 1 15,000 1 6,000 $0.00
2007 2q 108 1,725,021 13,806 0.8% 14,914 1 14,914 2 21,000 $0.00
2007 1q 107 1,710,107 13,806 0.8% (13,806) 0 0 3 35,914 $0.00


W O O D B R I D G E / I - 9 5 C O R R I D O R M A R K E T

0.140 25.0%
0.120
0.100 20.0%
0.080
Percent Vacant
0.060
Millions SF
15.0%
0.040
0.020
10.0%
0.000
(0.020)
(0.040) 5.0%
(0.060)
(0.080) 0.0%


0.70
0.60 $23.50
0.50
Dollars/SF/Year
$23.00
Millions SF
0.40
0.30 $22.50
0.20
$22.00
0.10
0.00 $21.50

2010 4q 220 3,215,932 497,396 15.5% (1,389) 0 0 2 50,032 $22.54
2010 3q 220 3,215,932 496,007 15.4% 27,815 0 0 2 50,032 $23.29
2010 2q 220 3,215,932 523,822 16.3% 52,952 1 32,400 2 50,032 $23.16
2010 1q 219 3,183,532 544,374 17.1% 25,694 0 0 3 82,432 $23.68
2009 4q 219 3,183,532 570,068 17.9% 56,807 0 0 1 32,400 $22.90
2009 3q 219 3,183,532 626,875 19.7% (60,177) 2 21,633 1 32,400 $23.14
2009 2q 217 3,161,899 545,065 17.2% 971 0 0 3 54,033 $23.43
2009 1q 218 3,162,898 547,035 17.3% 51,325 2 115,778 2 21,633 $23.86
2008 4q 216 3,047,120 482,582 15.8% 21,953 0 0 3 127,411 $23.96
2008 3q 216 3,047,120 504,535 16.6% (13,430) 1 42,252 3 127,411 $24.42
2008 2q 215 3,004,868 448,853 14.9% 6,521 2 107,000 2 142,252 $25.19
2008 1q 213 2,897,868 348,374 12.0% 106,486 1 5,460 4 249,252 $24.80
2007 4q 212 2,892,408 449,400 15.5% (16,173) 0 0 5 254,712 $25.26
2007 3q 212 2,892,408 433,227 15.0% 33,436 2 39,200 4 154,712 $24.95
2007 2q 210 2,853,208 427,463 15.0% (6,123) 2 26,138 3 44,660 $24.43
2007 1q 208 2,827,070 395,202 14.0% (35,397) 4 89,400 5 70,798 $24.56

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The CoStar

Washington, D.C. Office Market

Washington, D.C. Office Market

©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT A

Washington, D.C. Office Market

CoStar Group, Inc.

B THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

Washington, D.C. Office Market

Terms & Definitions

©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT C

Washington, D.C. Office Market

D THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

Washington, D.C. Office Market

Washington’s Vacancy Decreases to 12.9%

Vacancy Rates by Class 1993-2010

Source: CoStar Property®

Absorption & Deliveries

Past 10 Quarters Past 10 Quarters

Washington, D.C. Office Market

2 THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

0% YEAR-END 2010 – WASHINGTON, D.C.

OVERVIEW Source: CoStar Property®

Museum Parkway, a 525,000-square-foot building that delivered 0.0

©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 3

Washington, D.C. Office Market

CoStar Markets & Submarkets

4 THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

Washington, D.C. Office Market

Total Employment by Industry Total Employment Growth

Office* Employment Growth Office* Employment Growth

Dallas/Ft Worth -0.70% 6.40% -7.10% 2.0%

Historical Unemployment Rates

Source: Department of Labor, Bureau of Labor Statistics.

©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 5

Washington, D.C. Office Market

Tenant by Size Range Tenants by Lease Expiration

75,000 SF & Up 2.8% 2017 7.5%

Up to 2,499 SF 42.5% 2012 12.7%

Source: CoStar Tenant® Source: CoStar Tenant®

Tenants by Industry SF Per Employee by Industry

Services 21.6% Law Firms 425.2

Government 16.0% Services 352.5

Business-Service 15.0% Government 347.9

Finance/Ins/RE 12.8% Manufacturing 325.2

Law Firms 10.9% Finance/Ins/RE 298.1

Manufacturing 6.2% Retailers/Wholes 288.6

Communications 4.5% Engineers/Archit 280.9

Medical 4.2% Agri/Mining/Util 276.5

Engineers/Archit 3.3% Business-Service 271.6

Agri/Mining/Util 2.1% Communications 257.0

Retailers/Wholes 1.6% Accountants 252.7

Accountants 1.4% Medical 249.2

Transportation 0.5% Transportation 230.3

Source: CoStar Tenant® Source: CoStar Tenant®

6 THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

Washington, D.C. Office Market

Construction Highlights in Select CoStar Markets

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©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 7

Washington, D.C. Office Market

Historical Deliveries 1982 - 2010

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