July 2009

During 2008

The Orlando MSA economy was affected by several factors:

1. Negative job growth - The first decline in job growth in Orlando since 2002 was realized. From November 2007 through November 2008, approximately 7,500 jobs were lost.
2. Declining consumer spending - This was due to a decrease in personal income growth, which went from 4.6% in 2007 to 2.8% in 2008. This caused a deterioration in consumer expenditures, which further weakens the economy.
3. Escalation of the credit crisis - The banking bailout has had little impact to date to assist the recovery of the credit markets. Consumers and businesses found it increasingly difficult to access credit.

Effects on the Orlando Office Market

The Orlando office market had a difficult year in 2008.

1. Decline in tenant demand
2. Absorption was the highest negative total on record.
3. Overall vacancy increased to the highest level in four years
4. Sales activity was basically non-existent (Cushman & Wakefield Market Beat Orlando Office Report - 4th Quarter 2008)

The Orlando downtown has been hit hardest because it relies more heavily on financial institutions. Only 346,398 square feet of downtown space was leased in 2008, which was the lowest total in more than a decade. The unit price paid for downtown office space decreased from $225 per square foot in 2007 to $223.75 per square foot. The decline in downtown office space sold was blamed on the lack of financing. No new office space was under construction; however, more than 1 million square feet is still planned for construction. Only one-fourth of that amount is actually predicted to be completed in the next two years, according to Cushman & Wakefield specialists. Integra Realty Resources Inc. forecasts that the Orlando central business district will take 5 years to find the "balance" between supply and demand (Orlando Sentinel - February 5, 2009).

(Source: CB Richard Ellis MarketView, Orlando Office Fourth Qtr. 2008)

Specifics:

• The total vacancy rate for Metro Orlando increased to 14.1%, which was an increase of 1.7% over the last quarter. The highest vacancy of 16 and 17.7% occurred in the South Orlando and North Orlando submarkets, respectively. The Lake Mary and Maitland Center submarkets have the lowest vacancies of 9.8 and 12.2%, respectively.

(Source: CB Richard Ellis MarketView, Orlando Office Fourth Qtr. 2008)

• The overall average lease rate for Metro Orlando decreased by $0.67 to $21.52/SF in the 4th quarter. Although the lease rate decreased in the Downtown submarket, it had the highest lease rate of $28.21/SF.
• Total absorption decreased from positive 215,645 square feet in the 3rd quarter of 2008 to negative 578,321 square feet in the 4th quarter of 2008.

(Source: CB Richard Ellis MarketView, Orlando Office Fourth Qtr. 2008)

New Development (2008)

Michael A. Mennello bought out two partners in the mixed-use development project (Progress Point) planned for 5.73 acres at the intersection of Orange and Minnesota avenues and Denning Drive. The development, which is planned to include offices, retail space and apartments, has been delayed and is scheduled for a planning and zoning hearing with the City of Winter Park (January 4, 2008).

Posner Park, located at the southeast corner of US Highway 27 and Interstate 4, is proposed to be a $500 million office, residential and retail development to be completed in the spring 2008 (Polk County Business Journal - January 7, 2008).

Mainsail Development is nearing the completion of Cypress Station, a two-story, 28,000 square foot retail and office development at Cypress Gardens Blvd. and Cypress Gardens Road (Polk County Business Journal - January 7, 2008).

(source: Sale brochure)

Lamm & Co. Partners is developing a $24 million brownstone-office project (rendering following) on 7 acres in Maitland. The Office Brownstones at Maitland Concourse South will have 87,256 square feet of office space in a campus setting. The offices are build-to-suit and range in size from 4,500 to 43,200 square feet. The space is for sale, not lease, with prices starting at $245 per square foot (Orlando Business Journal - January 18, 2008).

Pinnacle Cos. broke ground on East Park Village, a mixed use commercial project that is planned to include 225,000 square feet of medical and office space. The retail space of 45,000 square feet should be completed by September. It will be anchored by Harmoni Market boutique food outlet and adjacent to the existing 545-acre East Park residential community (Orlando Sentinel - January 23, 2008).

Capital Development Group Inc. is planning to replace an Orlando Regional Healthcare parking garage in downtown Orlando with an outpatient surgery center and medical office building. The five-story building will be located on the southwest corner of South Orange Avenue and Columbia Street and is planned to consist of 153,664 square feet of medical office space and 3,471 square feet of retail space. Construction is planned to start in late June and be completed by September 1, 2009. Shell construction of the building is expected to cost $18.5 million (Orlando Business Journal - January 25, 2008).

Research Pointe II, a 71,000 square foot, mixed use building, is planned for the University of Central Florida Research Park. The $6 million project is anticipated to be completed in September (Orlando Sentinel - January 28, 2008).

(source: www.sodo-orlando.com)

SoDo, a $100 million, urban mixed-use lifestyle development (see photo below), is under construction on 22 acres between Grant and Crystal Lake streets on Orange Avenue, south of downtown Orlando. The project is a joint venture between North American Properties and Kimco Development. The project will include: 370,000 square feet of retail (including a SuperTarget), dining, and entertainment space; 70,000 square feet of office space; and 300 luxury residential units. Emily Zinaich, of Morrison Commercial Real Estate, will handle leasing of the office space (Orlando Sentinel - January 28, 2008).

The Shermen Group LLC broke ground on a $17 million project called Celebration Blvd. Medical Center. The 90,000-square foot, four-story medical office center will be situated on 7 acres (Orlando Sentinel - February 4, 2008).

Liberty Property Trust was planning to break ground in spring 2008 on a seven-story, 210,000 rentable square feet office complex in Maitland. Reportedly, the office will be the largest constructed in the Orlando area this year. Known as Summit Park III, most of the office space is planned for lease to a financial-services firm. The total cost of the project is anticipated to be $50 million. Liberty Property Trust has been one of the busier commercial developers in the Orlando area recently. The developer completed work on three office projects locally in the third quarter of 2007 and a total of seven for 2007. The Maitland submarket hasn't seen new class A office space since 2002, when the Maitland Promenade II, consisting of more than 200,000 square feet, was opened by Opus Development Inc. (Orlando Sentinel - February 25, 2008).

Coldwell Banker Commercial Real Estate is developing the Windermere Business Center at the intersection of Turkey Lake and Conroy-Windermere roads. The center, scheduled for completion by the end of summer 2008, will add another 75,000 square feet of office space to southwest Orange County (Southwest Orlando Bulletin - June 23, 2008).

The Rialto Rendering (source: www.rialto.com)

The Rialto is a 350,000 square foot urban center, which consists of office condos, retail stores and restaurants. The business center at The Rialto contains 48,000 square feet, encompassing at least three dozen office spaces. However, construction of the 200 residential condominiums, originally in the plans, has been placed on hold (Southwest Orlando Bulletin - June 23, 2008).

Phillips Corner, being developed by Phoenicia Development LLC, will be an approximately 20,000 square foot office condo complex of 14 professional office suites (Southwest Orlando Bulletin - June 23, 2008).

American Land Developers, Inc. plans to build a $100 million mixed use project in Ocoee. The CityPlace at Maguire project will be located on 11 acres on the west side of Maguire Road. Preliminary plans include: 90,000 square foot of retail space; 49,000 square feet of offices; a 594-space parking garage; a 16-story condominium tower with 400 units; and a 131-room hotel (Loopnet - August 11, 2008).

Development on Hold

Developers withdrew plans for a 15-story office building in downtown Orlando on Lake Eola Park. Nearby residents were concerned and representatives of Eola Capital have decided to put together more detailed plans to submit to the Orlando Municipal Planning Board in six months. Eola Capital is proposing a 200-foot office tower with ground-floor restaurant on private property at the southeast corner of Lake Eola Park. When constructed, the building would be surrounded on three sides by public land. However, zoning rules currently in place allow office buildings to be no more than 40 feet tall. Eola Capital has already purchased the land which was improved with five historic houses built between 1915 and 1930, which have been converted to office use (Orlando Sentinel - April 16, 2008).

Eola Capital is asking the Orlando City Commission to approve a land swap deal in downtown. Eola Capital wants to flip its property on Washington Avenue, east of Lake Eola with an existing city-owned park at Eola Street and Central Blvd. (WFTV - October 6, 2008).

Office Building Sales (2008 and 2009)

BGK bought a 45,000-square-foot office building on ChampionsGate Boulevard for $8.8 million, or $195.56 per square foot, from Champions Gate Resort. Champions Gate and RIDA Associates LP developed and built the facility five years ago. Grubb & Ellis Commercial Florida negotiated the deal. The building is completely leased (Orlando Business Journal - January 4, 2008).

CNL Commercial Real Estate purchased a $4.5 million vacant office property in Central Florida Research Park and a $32 million, 12-story office building on Harbour Island in Tampa's central business district (Orlando Sentinel - January 9, 2008).

The Gateway Center (source: CoStar - January 22, 2008)

Parkway Properties Inc. purchased the Gateway Center (photo below) in downtown Orlando from Jones Lang LaSalle Inc. for $55 million, or approximately $250 per square foot. Jones Lang LaSalle bought the building in 1999 for $26.9 million. The Gateway Center is a 228,000 square foot building located at 1000 Legion Place built in 1989. The property includes 10 stories of Class A office space above a six-story, 817-space parking garage. The building is 79% leased, consisting of 17 tenants (Orlando Business Journal, CoStar Group - January 22, 2008).

Tower Realty Partners and DRA Advisors purchased the Ocwen Building at 12650 Ingenuity Drive in Orlando for $24.5 million, or approximately $196 per square foot, from Ocwen Financial Corp. The two-story office building, built in 1999, consists of 125,000 square feet and is situated on 42.5 acres in the Central Florida Research Park. Ocwen leased back the property on a long term deal (CoStar Group - January 30, 2008).

Rudnick Development purchased the Reflections at Hidden Lake office building at 520 W. Lake Mary Blvd. in Sanford for $8.95 million, or approximately $93 per square foot, at a 9.1% cap rate. The three-story building was built in 1988 and consists of 96,178 square feet located on 7.72 acres. The seller, Reflections at Hidden Lake Inc., was represented by Matthew McKeever and Mike Davis of Cushman & Wakefield (CoStar Group - January 30, 2008).

Trafalgar Court LLC bought the Trafalgar Building, a 174,048 square foot office complex in Maitland for $24 million, or $137.89 per square foot. Ronald J. Rogg of CB Richard Ellis represented the buyer, while John Gilbert represented the seller, AEW Capital Management. The 4-story building was built in 1984. AEW Capital Management purchased the building in 1999 for $22.2 million. Replacement cost for the building is estimated to be $26.77 million and the land is valued at $4.7 million (Orlando Sentinel - February 1, 2008).

Oakpoint Development Co. purchased an office building on 2.03 acres at 636 Beachland Blvd. for $7.8 million. It is considered a part of the posh Ocean Drive commercial district of Vero Beach. Tenants of the building include Merrill Lynch, Seacost Banking Corp. and Evans Properties, Inc. (TC Palm - March 4, 2008).

Orlando developer Cameron Kuhn, who ran into fiscal problems earlier this year, sold the 87,000-square-foot building at 100 E. Pine St. to Frank Vennes Jr. for $10.4 million, or $119.54 per square foot. Kuhn made about $6 million on the deal, having bought the seven-story building that is occupied by Mad Cow Theater in 2000 for $4.5 million, according to public records (Orlando Business Journal - March 7, 2008).

Developer Richard Compton bought The Ellis Building at 33 E. Pine Street for $1.6 million. It is a 3-story office building in downtown Orlando which was built in the 1880's. Plans for the building include interior renovations (Orlando Sentinel - April 8, 2008).

Full Sail Real World Education acquired Building 10 of the Lakeview Office Park, at 2303 N. Semoran Blvd. in Orlando for $5.1 million, or $104 per square foot, from BGK Group. The 48,963-square-foot building was built in 1972 and is situated on approximately five acres. Bret Felberg and Joseph Rossi of Grubb & Ellis represented the seller, while Geoff Rogers of Silver City Partners Ltd. represented the buyer (CoStar Group - April 15, 2008).

DHI Realty Holdings purchased Cascades Executive Center at 1890 State Road 436 in Casselberry for $5.45 million, or approximately $137 per square foot, from Frank Marisco. The buyer plans to occupy the two-story, 39,586 square foot office building which was built in 1987 and is situated on 2.3 acres. Joseph Rossi of Grubb & Ellis Commercial Florida represented the buyer and John Roper of John J. Roper Co. represented the seller (CoStar - May 12, 2008).

Orlando Regional Health Care Systems purchased the Columbia Street Medical Center from Columbia Street Partners LLC for $7.9 million, or $242 per square foot. The two-story medical office building at 21 W. Columbia St. consists of 32,665 square feet and was built in 1994. Bill Bywater represented both parties of the transaction (CoStar - June 30, 2008).

Flagler Development Co. bought two office complexes in Maitland for $92.5 million from Grubb & Ellis Realty Investors LLC. The Reserve at Maitland, consisting of 197,000 square feet of class A office space, sold for $39.56 million ($201 per square foot) and Maitland Promenade, consisting of 230,368 square feet, sold for $52.94 million ($230 per square foot). Holliday Fenoglio Fower LP handled the sale for the buyer (Orlando Sentinel - July 12, 2008).

Heathrow Center Phase III (source: CoStar Group - July 30, 2008)

Pinnacle-1540 Building LLC acquired the Heathrow Center Phase III office building (photo below) in Lake Mary for $8 million, or approximately $221 per square foot, in shell condition. The office building consists of 36,142 square feet. Miguel de Arcos and Ajay Babbar of Sperry Van Ness represented the seller, Ansar Heathrow Center Phase Three LLC (CoStar Group - July 30, 2008).

Millenia Centre in Orlando sold for $12 million, or approximately $191 per square foot. The three-story, 62,866 square foot office building located at 3902 Millenia Blvd. was built in 2007 in shell condition. The property was previously marketed as condo units. Frances Allen of Realty represented the buyer (CoStar Group - August 8, 2008).

HDG Mansur Investment Services, of Indianapolis, purchased a 106,440 square foot office building on Premier Row in Orlando from Symcor Inc. The buyer plans to continue to use the property as an operations, data and check-processing center. Chris Sproles, Ray Romano, and Ron Rogg of CB Richard Ellis represented the seller (Central Florida Business - October 6, 2008).

Lake Underhill Professional Group LLC purchased a 16,500-square-foot medical office building on Lake Underhill Road in Orlando for $2.65 million, or approximately $161/SF. The building is located across the street from Florida Hospital East. Magic Properties represented the seller and Bob Winters and Tyler Brackney of Dunhill Properties Inc. in Orlando represented the seller (Central Florida Business - November 24, 2008).

Trinity Broadcasting Network, parent company of Holy Land Experience, paid $17.6 million ($176 per square foot) for a 7-acre office complex, the Bay Colony Technology Center, next to the theme park. The administrative staff will be relocated to one of the two buildings and television studio is also proposed. The property consists of approximately 100,000 square feet of office space, which was built in the 1990's. Batac Corp, the seller, paid $5.2 million for the site in 1990. The buyer will continue to lease space to the current tenants (Orlando Business Journal - January 9, 2009).

RGC Realty Group bought the two-story, 37,574 square foot office building at 7001 Lake Ellenor Drive for $2.15 million, or $57 per square foot, from Tarragon Corp. The building was built in 1972 with renovations as recent as 1994. Tom Kelley of NAI Realvest represented the buyer and the seller (CoStar Group - April 29, 2009).

Office Co. LLC purchased a 21,234 square-foot office building at 505 Maitland Ave., Altamonte Springs, for $2.375 million, or $112 per square foot, from Eula Scott LLC. The law firm, Wright, Fulford, Moorhead & Brown, P.A., will occupy the building. Chuck Mitchell and Trent Scott of First Capital Property Group Inc. represented the buyer and Michael Calhoun of Maitland Realty Company represented the seller (Central Florida Business - May 18, 2009).

Duke Realty Corp and CB Richard Ellis Realty Trust together purchased the Disney Vacation Development headquarters building for $17.1 million ($169 per square foot) that was previously owned by Duke Realty Corp. only. The building, a 3-story, 100,924 square foot Class A office building in Celebration Office Center III at 1390 Celebration Blvd., is leased, long term, by the Walt Disney Co. This purchase was part of a $41.1 million acquisition, totaling 326,886 square feet of office space ($126 per square foot). The other properties included a Class A office building in Houston and a Class A distribution center in Tampa (Orlando Business Journal - May 22, 2009).

Condo Sales (2008)

Harkins Realty Inc., of Harkins Cos., sold 1,700 square feet of shell office space to East Orlando Endodontics for $335,000, or approximately $197 per square foot. The office space is located in Woodland Lakes Professional Plaza on Lake Underhill Road between Florida Hospital East and Waterford Lakes Town Center (Orlando Sentinel - April 21, 2008).

DFG Plaza LLC paid $1.55 million, or approximately $165 per square foot, for three office condominium units (in finished shell state) totaling 9,395 square feet on the 16th floor of The Plaza in downtown Orlando. The Plaza LLC was the seller. Marc Cook of Tom Cook Commercial represented the buyer and Stirling Sotheby's International Realty represented the seller (Central Florida Buinsess - July 28, 2008).

Premier Plaza Properties LLC purchased a 3,350 square foot unit (with interior build-out) in The Plaza in downtown Orlando for $666,450 ($199 per square foot) from JJ Plaza LLC. Marc Cook of Tom Cook Commercial represented the seller and John Kurtz of Stirling Sotheby's International represented the buyer (Central Florida Business - September 29, 2008).

Office Condo Development Changes (2008)

The developer of Belle Terre, a 63,000 square foot, office condo development project near Mall at Millenia, has decided to market the remaining, vacant 53,000 square feet as Class A office space for lease. Lease rates are proposed to start at $28 per square foot. However, office space will still be available for purchase at $280 per square foot. Originally, the office space was listed for $395 per square foot (Orlando Business Journal - February 22, 2008).

An "absolute" auction of the remaining 117,000 square feet of space in the The Plaza office-condominium towers was planned and held in May 2008. The auction consisted of 20 or more suites ranging from 2,600 to 3,500 square feet, and many have balconies with expansive views of downtown. Reportedly, the entire 10th floor of the north and south towers, which consisted of more than 61,000 square feet of space, was the single largest component of the auction. The 10th floor has a connecting suite between the two circular buildings, which can be divided or purchased as a single unit (Orlando Sentinel - April 22, 2008).

Millenia Centre (source: CoStar Group)

The Millenia Centre office building (photo below), consisting of 62,866 square feet of shell office space and located at 3902 Millenia Blvd. in Orlando, sold for $12 million, or approximately $191 per square foot. Frances Allen, of Hyland Realty Inc., represented the buyer. The office building is situated on a 4-acre lot and includes a private parking garage and high-tech security. The property was originally marketed as condo units; however, the buyer plans to occupy the office building (LoopNet - August 15, 2008).

Office Related Land Sales (2008 and 2009)

The U.S. Department of Veterans Affairs plans to buy 55.9 acres in Lake Nona, adjacent to the UCF Medical School, for $34 million, or approximately $608,000 per acre/$13.96 per square foot. Lake Nona plans to donate an additional 10 acres, which is valued at $6 million. The federal agency plans to build a new VA Hospital on the site (Orlando Sentinel - February 11, 2008).

Rida Development Corp. bought 5.62 acres on Orange Avenue between Amelia and Livingston streets for $15.1 million ($61.68 per square foot). The buyer has plans for a multimillion-dollar, mixed use complex. However, there are no plans to break ground for at least 12 to 18 months. Reportedly, the developers would like to preserve some of the property's open space and create an "urban feel" with ground-floor retail and a full service hotel (Orlando Sentinel - May 9, 2008).

The Institute of Internal Auditors purchased a 7-acre parcel at the intersection of International Parkway and Heathrow Park Lane in Lake Mary in Seminole County from Colonial Properties Trust for $1.9 million, or approximately $271,000 per acre/$6.23 per square foot. An office building is planned for the site with an expected completion time frame of the fourth quarter 2009. Joseph Rossi, Bret Felberg and David Chapin of Grubb & Ellis, and Matt Taylor of Real Estate Research Consultants represented the buyer (Costar Group - October 23, 2008).

Rowe Manufacturing LLC purchased an acre at the Randyard Commerce Center for $410,769, or $9.43 per square foot. Chuck McNulty of McNulty Group Inc. negotiated the sale (Central Florida Business - June 15, 2009).

Office Related Leases (2008 and 2009)

Raytheon Co. pre-leased 65,147 square feet in Research Pointe II office building in Orlando. The lessee plans to use the property as the headquarters for its US Army training support program. Research Pointe II should be completed during the fourth quarter of 2008. Reid Berman of Tower Realty Partners represented the landlord while Steve Coughlin of Coughlin Commercial and Jeff Sharp of Cushman & Wakefield represented Raytheon (CoStar Group - January 22, 2008).

Remington College of Nursing leased 19,200 square feet for seven years on the Rinehart Ridge Campus in Lake Mary in Seminole County. The lessee will occupy a portion of the single-story, 70,400 square foot, flex facility at 660 Century Point in Building IV. Susan Ruby of Cushman & Wakefield of Florida represented the landlord, Webb International Inc. and the tenant (CoStar Group - May 5, 2008).

Alcatel-Lucent leased 48,750 square feet in the CenterPointe One building at 240 E. Central Parkway in Altamonte Springs. CenterPointe One is a four-story, 104,000 square foot office building that was built in 1999. Rents at the building usually average $16.50 per square foot per year. Rick Solik of Cushman & Wakefield represented Alcatel-Lucent while Eric Emerson represented Emerson International, the landlord (CoStar Goup - May 27, 2008).

Orlando Regional Healthcare System leased the 89,644 square foot Crownpointe IV industrial building at 7312 Kingspointe Parkway. William "Bo" Bradford of Southern Commercial represented the tenant and Tom McFadden of Southern Commercial represented the landlord, TR Crownpointe Corp. (CoStar Group - July 15, 2008).

Old Southern Bank leased a former Fifth Third Bank location in the Springs Plaza on State Road 434 in Longwood for $1.85 million for 10 years. Jorge Rodriguez of CB Richard Ellis represented Springs Plaza while Joe Schuemann of Blue Rock Development represented the tenant (Central Florida Business - September 8, 2008).

SoDo Mixed Use Development Rendering (source: www.sodo-orlando.com)

Orlando Orthopaedic Center has signed a 15-year, 45,000 square foot lease in the SoDo mixed use center (see rendering below) on S. Orange Avenue. The tenant plans to occupy the space in late 2009. Emily Zinaich of Morrison Commercial Real Estate handled negotiations for Kimco, the landlord, and David Chapin of Grubb & Ellis represented the tenant (CoStar - February 23, 2009).

Northrop Grumman Systems Corp. leased 42,334 square feet of office space in University Corporate Center III at 11474 Corporate Blvd. in east Orange County Greg Morrison and Emily Zinaich of Morrison Comemrcial represented the landlord, Opus Real Estate FL VII UCC3 LLC, and Christopher Sproles of CB Richard Ellis represented the tenant (Central Florida Business - March 23, 2009 and CoStar Group - March 10, 2009).

Harland Financial Services renewed their lease of 80,000 square feet at Crescent Executive Court, occupying the top 3 floors of Primera Building III in Lake Mary. Richard Solik of Cushman & Wakefield of Florida, Inc. represented the tenant in the $18 million, 10-year deal. The building is owned by Sun Life Financial (Central Florida Business - March 23, 2009).

Sedgewick Claims Management Services renewed their lease with America's Capital Partners at Primera V in Lake Mary and also increased the size of their space to a total of 30,000 square feet. The tenant occupies a portion of a six story, 190,034 square foot office building. Richard Solik and Betsy Owens of Cushman & Wakefield handled the transaction (CoStar Group - April 15, 2009).

University Corporate Center III (source: CoStar Group - May 6, 2009)

Siemens Shared Services leased 29,500 square feet at University Corporate Center III in Orlando's Quadrangle Office Park. The office building, which is three-stories and totals 104,154 square feet, is located at 11474 Corporate Blvd. Leo Orisi of the Princeton Group represented Siemens while Greg Morrison and Emily Zinaich of Morrison Commercial Real Estate represented Opus (CoStar Group - May 6, 2009).

US Citizenship and Imigration Services has leased a new 43,668 square foot office at 6680 Lee Vista Center, near Orlando International Airport. GVA Advantis is handling the leasing and property management of the office (Central Florida Business - June 22, 2009).

Significant lease transacations reported by Cushman & Wakefield in the 4th quarter, 2008:

Overall, the University submarket has experienced more positive leasing activity as a result of the area's status as a hub for the simulation training industry, according to Greg Morrison of Morrison Commercial (CoStar Group - March 10, 2009).

Through Second Quarter 2009:

• Landlords desperate to reduce risk by extending lease terms in exchange for months of free rent, competitive tenant improvement allowances, and other rent concessions due to high vacancy rates and sublease space in the market
• Declining overall lease rate to $20.86 per square foot in the Metro Orlando market

(source: CB Richard Ellis MarketView Orlando Office - 2nd Quarter 2009)

• Absorption increased from negative 539,995 to negative 275,558 square feet from the 1st quarter
• There are four buildings, or 661,236 square feet under construction
  (CB Richard Ellis MarketView Orlando Office - 2nd Quarter 2009)

The 2009 Office Market Outlook for the Orlando Metro Area:

• Employment is projected to decline 1.9%.
• Personal income should continue to decrease.
• Absorption will remain negative.
• Overall vacancy will continue to escalate
• Leasing activity will achieve historical lows throughout 2009
• Direct asking rental rates will decline to attract tenants.
• Until "normal" returns to the credit market, sales activity will remain low.
  (Cushman & Wakefield Market Beat Orlando Office Report - 4th Quarter 2008)