REITs & Market Power:

REITs & Market Power:

Are Public Markets Pricing Market Power Strategy?

An Analysis of the Apartment, Retail and Office Sectors

By

Kirstin V. Brown

B.S. Business Administration

Boston University, 1991 and

Steven A. Hickey

B.S. Civil Engineering

Bucknell University, 1993

Submitted to the Department of Architecture in

Partial Fulfillment of the Requirements for the Degree of

Master of Science in Real Estate Development at the

Massachusetts Institute of Technology

September 1998

@ 1998 Kirstin V. Brown and Steven A. Hickey

All rights reserved

The author hereby grants to MIT the permission to reproduce and to distribute publicly paper and electronic copies of this thesis in whole or in part.

SignatureDepartment

Signature of Author:

Certified by:ofArchitecture

Accepted by: of Architecture

July 31, 1998

Department of Architecture

July 31, 1998

Timothy J. Riddiough

Associate Professor

Thesis Supervisor

William C. Wheaton

Chairman, Interdepartmental Degree Program in Real Estate Development

MASSACHUSETTS INSTITUTE

OF TECHNOLOGY

OCT 2 3 1998

LIBRARIES

REITs & Market Power:

Are Public Markets Pricing Market Power Strategy?

An Analysis of the Apartment, Retail and Office Sectors

By

Kirstin V. Brown and Steven A. Hickey

Submitted to the Department of Architecture on

July 31, 1998 in Partial Fulfillment of the

Requirements for the Degree of Master of Science in

Real Estate Development

ABSTRACT

During the late 1980's and early 1990's, Real Estate Investment Trust ("REITs") accumulated large portfolios of properties. During this period, REITs were able to grow through acquisitions alone, arbitraging their low cost of capital relative to private asset valuations. This changed the real estate industry and for the first time, real estate entities have concentrated ownership in an industry traditionally characterized by fractionalized ownership. Today, there is tremendous pressure from the public markets for REITs to continue to grow. This has lead the management of REITs to seek alternative growth strategies. These strategies include cost economies of scale, branding, growth of non-real estate related revenue, vertical integration, and exertion of market power.

This thesis studies market power in real estate, focusing specifically on whether REITs are currently exerting market power. The first half of the thesis determines the magnitude of

REIT's current concentration of ownership, by cross referencing aggregate market data with individual REIT owned property data to arrive at market shares for individual REITs.

The second half utilizes these market shares to determine whether public markets are capitalizing high market shares into stock prices and, therefore recognizing market power strategies.

Thesis Supervisor: Timothy J. Riddiough

Title: Associate Professor

TABLE OF CONTENTS

ABSTRACT .................................................................................................................................................................

TABLE OF CONTENTS ...........................................................................................................................................

CHAPTER 1- INTRODUCTION ............................................................................................................................. 4

CHAPTER 2 -W H O OW NS W H AT W H ERE ..................................................................................................... 7

M ARKET DEFINITIONS..............................................................................................................................................

DATA........................................................................................................................................................................

7

8

M ETHODOLOGY AND DATA M ATCHING PROBLEMS .............................................................................................. 9

RESULTS................................................................................................................................................................. 12

Residential ..

U LCM RE.....................TS ............................................... 12

Retail................................................................................................................................................................. 14

Office................................................................................................................................................................. 17

CHAPTER 3 - ARE PUBLIC MARKETS PRICING MARKET POWER STRATEGY? ............... 20

INTRODUCTION .......................................................................................................................................................

T INDEX ................ ............................................................................................................................

M ARKET SHARE INDEX DEFINED ............................................................................................................................

THE FORMULAS..........................................................................................................................................................

THE RESULT S .....................................................................................................................................................

THE M ODEL ...... .................................................................................................................................................

THE VARIABLES.... ............................................................................................................................................

THE SAMPLE DATA...................................................................................................................................................

REGRESSION RESULTS ............................................................................................................................................

Residential .............................................................................................................................................................

Retail .............................................................................................................................................................

Office .............................................................................................................................................................

CONCLUSION ..........................................................................................................................................................

CHAPTER 4 - CONCLUSION..........................................................................................

23

23

29

30

34

34

35

36

37

39

20

20

21

22

41

APPENDIX 1 .............................................................................................................................................................

APPENDIX 2 ...............................................................................................................

43

47

APPENDIX 3 ...............................................................................................................

APPENDIX 4...............................................................................................................

51

57

APPENDIX 5 .............................................................................................................................................................

APPENDIX 6.............................................................................................................................................................

61

68

APPENDIX 7 ......................................................................

APPENDIX 8...............................................................................................................

80

90

APPENDIX 9...............................................................................................................

BIBLIOGRAPHY.........................................................................................................

2

3

94

97

3

CHAPTER 1

INTRODUCTION

I don't want 20% of northern California. I much prefer 50% to 90% shares of particular submarkets. The market-share goal has never been addressed in real estate. It's been afragmented business, a building here and a building there. My advantage is having ten buildings in a submarket instead of one. Guess who sets the rents? I do. And the real estate brokers have to deal with me. I am the market.'

-- Warren (Ned) Spieker, Jr., Chairman of Spieker Properties

[Crescent] acquires markets, not buildings.

2

-- Gerald W. Haddock, Chief Operating Officer of Crescent Real Estate Equities

Real Estate Investment Trusts ("REITs") have accumulated a tremendous portfolio of property during the mid-1990's. The disintermediation that resulted from the real estate crash of the late 1980's and early 1990's left many firms looking for alternative ways to recapitalize.

Many real estate companies turned to the public markets. The REITs that are now in dominant positions were able to utilize the advantage that easy access to public capital offered. During this period, REITs were able to grow through acquisition alone, arbitraging their low cost of capital relative to private asset valuations.

The result is that the landscape of the real estate industry has changed. For the first time, real estate entities have concentrated ownership in an industry traditionally characterized by fractionalized ownership. In addition, there is tremendous pressure from the public markets for

REITs to continue to grow. This has resulted in a shift in how real estate investment strategy is viewed from a passive asset by asset strategy to a more dynamic strategic positioning of asset portfolios. The strategies that REIT management currently employ include cost economies of scale, branding, growth of non-real estate related revenue, vertical integration, and exertion of market power.

The accumulation of concentrated portfolios and the dynamic management of real estate assets by REITs are changing the theoretical context in which real estate is viewed. Concepts

1

2

Stephanie Anderson, Richard A. Melcher, Kathleen Morris and Suzanne Whoolley "The New World ofReal

Estate" Business Week 9/22/97 Page 78

such as market power, which until recently, were not thought of as relevant to the real estate industry, are now viable topics. As the introductory quotes illustrate, not only is market power a hypothetical possibility, it is an explicit strategy of some REITs.

In this paper, we study market power in real estate, focusing specifically on whether

REITs are currently exerting market power. Our exploration of market power and real estate starts with a documentation of "who owns what where." Then, we calculate existing REIT market shares. Finally, we attempt to determine if public markets are capitalizing market power strategies into share prices.

To determine the magnitude of REIT's current concentration of ownership, we assemble a market share database of "who owns what where" in the residential, retail and office sectors.

To do this, we cross reference aggregate market data with individual REIT owned property data to arrive at market shares for individual REITs. These market shares are analyzed for existing trends and also illustrate the extent of ownership concentrations that currently exist.

The analysis of market shares for the apartment sector at the MSA level shows there are many residential REITs, none of which has accumulated significant market shares. However, the

REITs with higher market shares tend to be the larger residential REITs. The analysis of the retail sector provided some interesting insights; individual REITs have accumulated the greatest market shares in this sector. Specifically, when looking at concentrations of REITs investing in regional and super-regional properties, impressive market shares have been achieved at the county level. In each of the 346 counties in which REITs own regional and super-regional malls,

REITs have accumulated market shares that average 36%. In addition, in 70 of the counties,

REITs have market shares of at least 90%. Our analysis also reveals that there are a few firms which are dominant in the retail sector. In the office sector, the most notable results were at the market levels defined by Torto Wheaton Research ("TWR"). At this level, individual REITs were able to achieve high market shares. The surprising result was that the majority of the TWR markets with high concentrations were in the suburbs. The REITs that achieved high market shares tend to be regionally focused. This is probably because they chose to expand in the markets in which they originated. Thus, unlike the more mature retail sector, there is more room in this sector for future consolidation.

Having compiled a database of REIT market shares, we then attempt to statistically determine whether REITs are exerting market power. Our statistical model attempts to measure

whether public markets are capitalizing high market shares into stock prices, therefore recognizing market power strategies.

The first step in determining whether public markets are capitalizing high market shares into stock price is to create an appropriate variable to serve as a proxy for market power. To do this, we calculate market share indices for each REIT using the market share data assembled.

The indices are a weighted average of the market shares in each market that a REIT has a presence in.

We then create a model in which we can isolate market power effects. The model contrasts a public market measure of growth potential the funds from operation ("FF0") multiple, with the more traditional real estate investment tool the capitalization rate ("cap rate"). The model utilizes the FFO multiple as the dependent variable. Some of the components that determine the cap rate, including our market power variable, will be the independent variables. The intent is to isolate effects of market power strategies on stock price.

Consistent with the nature of exploratory analysis, the regressions produce some surprising results. The market share index, although statistically significant, produced a negative coefficient in the office and retail sectors. This result is counter intuitive. However, we believe there might be market power effects and the index created possibly captures two distinct groups of REITs with high index values. The first group consists of REITs that have high market shares but do not have geographically diverse portfolios. The other group consists of REITs that have high market shares but do have geographically diverse portfolios. The public markets could be pricing these two groups differently, thus obscuring a positive market power effect in the analysis.

CHAPTER 2

WHO OWNS WHAT WHERE

This chapter documents REIT property ownership in various geographic markets for the apartment, retail, and office sectors (who owns what where). Each sector is analyzed at different market levels. The apartment sector is analyzed at the Metropolitan Statistical Area ("MSA") level; the retail sector is analyzed at the county and state level; and the office sector is analyzed at the MSA level and at a market level as defined by Torto Wheaton Research/CB Commercial

("TWR"). This chapter first discusses our reasoning behind the choices for market definitions in the three sectors, then discusses the data and methodology used in our analysis, and finally discusses the results of our analysis.

Market Definitions

Because each product sector has different characteristics, such as lease terms and tenant flexibility, each sector has different relevant market delineations. Additionally, although high market shares may exist, we are not sure at what market level public markets may be recognizing potential market power (which comes from having high market shares). Therefore, we have defined relevant markets at several different levels for our product sectors.

In the apartment sector a broad market delineation has been used. In this case, the relevant market is defined as an MSA. Apartment leases are typically one year in length, which provides tenants the ability to move freely. Tenants generally make location choices with the length of their commute to work in mind. In this case, the range of acceptable living locations is extensive due to cars and public transportation. For example, an individual working in Boston's financial district could live on the north or south shores of Massachusetts, the western suburbs, or in southern New Hampshire. Thus, we feel that the MSA boundaries are suitable for residential markets due to the range of living options that individuals have in a particular region.

The relevant market in the retail sector has been defined from two perspectives. The first looks at the retailer's patrons and draws boundaries based on how far the patrons would travel to shop at a mall. If a REIT could gain a high market share at this market level, then they might be able to exert market power over the retailers who wish to have exposure to this demographic group. Following this reasoning, we define one of our retail markets at the county level. In this

case a county serves as a proxy for the geographic area in which a patron will travel to shop.

The second perspective looks at the tenant-landlord relationship. A REIT can attempt to gain market power over retailers/tenants by gaining significant market share in a region. In this case a retailer wishing to enter a region must deal with a dominant landlord. The retailer will have many options in terms of locations, however will have few choices in terms of landlords.

This reduction in competition between landlords within a region will enable market power to exist. In this case, the question is how large to define the market. Is a market defined as the

Northeast too large, or should markets be defined at a smaller level, such as the state level? For the purposes of our analysis we have chosen to define the market at the state level.

For our analysis of the office sector, we have two definitions of the relevant market. The first markets are taken from TWR. The TWR markets are delineated by office real estate brokers and are the smallest markets we could identify for the office sector. Brokers established these

TWR markets within a major market because they view these markets as being unique with characteristics that are attractive to a particular set of tenants. For example, one TWR market in

Boston is the financial district. Most financial and real estate firms choose to locate in the financial district. This behavior may be attributed to agglomeration benefits or the prestige of having a financial district address. The fact that these firms seldom relocate to other TWR markets within Boston reinforces our decision to use the TWR markets.

We also analyze the office sector with markets defined at the MSA level. This is done because we are not sure whether public markets are analyzing market share information and recognizing potential market power at the TWR market level. Therefore, the MSA definition of the market has been incorporated into our analysis. By using two definitions of the relevant market we hope to gain insight on the level at which public markets analyze market power.

Data

This section describes the data that was used to calculate REIT market concentrations in the residential, retail, and office sectors. To calculate REIT market concentrations for the markets described in the above section, two different types of databases were used for each sector. The first database consists of the number of square feet of real estate stock for each of the markets studied. The second database is a listing of REIT owned properties for each sector. All the data used in this analysis is from the end of the fourth quarter in 1997.

The market stock data for the three product sectors is from TWR. The residential data contains the total number of apartment units at the MSA level. The retail data consists of more than 36,900 retail sites throughout the country. The data contains each retail center's name, county, state, MSA, number of square feet, and retail classification. The retail classifications for each retail site is either neighborhood, community, regional, or super regional. The data for the office market consists of 54 MSAs split into a total of 738 TWR markets. Each market lists the amount of leasable square feet in that market. The TWR office database also lists zip codes, their corresponding TWR markets, and their corresponding zipshare. The zipshare is the percentage of a zip code that is located in a particular TWR market. The zipshare is important because in most cases all the office buildings located within a particular zip code do not fall completely within one particular TWR market, but overlap two or more markets. The importance of zipshares in our analysis is explained in more detail below.

The three databases of REIT owned properties for the residential, retail, and office sectors were compiled from several different sources. Information was taken from publicly available information such as 10k reports, annual statements, and REIT internet sites, along with private data from TWR/CB Commercial. Through a research sponsor, we also obtained data from the SNL Securities database. The REIT database contains the property name, city, state, zip code, county, MSA, and the number of square feet for each REIT owned property.

Additionally, the retail REIT database contains retail categories for each REIT owned property.

These categories are enclosed mall, power centers, outlet centers, and shopping centers.

Methodology and Data Matching Problems

To calculate market shares at each market level for the three product sectors, each individual REIT's square footage in a particular market must be calculated. This number is then divided by the aggregate square feet of the particular market to arrive at the REIT's market share.

Finding market shares at the MSA level for the residential sector did not prove difficult.

However, when calculating market shares for the retail and office sectors, there were some data matching problems.

When calculating market shares for the retail sector, we ideally would have liked to look at only the regional and super regional categories of retail properties because this particular retail

sub-sector has strong economic fundamentals for market power to exist. Very rarely are there regional or super regional retail centers within close proximity to each other because of their large market area. Thus, retailers have few substitutes when attempting to locate a store within a regional or super regional mall. By accumulating several regional and super regional malls within an area, a mall owner could reduce competition enough to exert market power.

However, there were problems when attempting to calculate market shares for regional and super regional malls. First, as mentioned previously, the aggregate market data had four retail categories: neighborhood, community, regional, and super regional. The REIT data also had four categories of retail assets: enclosed mall, power centers, outlet centers, and shopping centers. However, we were not sure how to match the aggregate market data to the REIT data.

Should the REIT classification of shopping centers be matched with neighborhood and community centers? We were not able to establish consistent definitions for all the classifications. Thus, we were unable to separate the data for analysis. Additionally, because our calculated market shares are used to create a market share index in the following chapter, we did not want to limit the market shares to only regional and super regional malls. This would have reduced the number of retail REITs that we would be able to use when attempting to determine if public markets are capitalizing market power into share prices (which is discussed in the following chapter). Therefore, we calculated market shares using all categories of retail assets to ensure that we would have useable data for a large number of REITs.

However, as stated previously we expected to see high market shares for regional and super regional categories of retail assets, so we did an exploratory analysis and attempted to calculate market shares for them. To solve the retail classification problem between our two retail data sources, we examined the classifications of the overall market data and came to the conclusion that the regional and super regional classifications, with a few exceptions, are all

300,000 square feet or larger. Thus, we performed market share calculations assuming that regional and super regional malls are 300,000 square feet or larger.

In several instances at the county level, calculated market shares for individual REITs exceeded 100%. This is occurring for two reasons. In some instances, we believe that the overall market data is missing some retail assets. In other instances, either the overall market data, or the REIT data, incorrectly lists the number of square feet for individual assets. When a market share in excess of 100% occurs, we have assumed that the REIT has a large enough

presence in a market to be given a 100% market share.

When determining the total REIT market share at the county level, there are also several markets that exceed 100%. While the same problems for the individual REIT calculations still exist, there is one additional issue that causes the county market share to exceed 100%. In several instances, REIT properties are listed as being owned by two or more REITs. When this occurs, the retail asset is being counted twice in the market share calculation, causing total county market shares to exceed 100% in markets where there would otherwise be high market shares not in excess of 100%.

When calculating market shares for the office sector, the primary problem we faced was placing REIT owned properties into TWR markets. The TWR market data lists a TWR market name, zip code, zipshare, and number of square feet in the market. The data on the REIT owned properties includes the zip codes of the properties, thus providing a logical level at which to sort the data. However, the TWR market boundaries are drawn with no consideration for the zip code boundaries. Therefore, in some instances only portions of zip codes are located within a

TWR market. This presents a problem when assigning REIT owned properties into appropriate markets using zip codes.

To solve this problem, we used the zip share to assign REIT owned properties to TWR markets. A zipshare that corresponds to a TWR market and zip code is the percentage of that zip code that falls within that TWR market. If a zip code had a zipshare equal to or greater than 0.50 for a particular market, then all properties in that zip code where assigned to that market. To illustrate this, consider two different markets, A and B. Now say 75% of zip code number 12345 lies within market A and 25% lies within market B. The zipshare for zip code 12345 in market

A is 0.75 and the zipshare for zip code 12345 in market B is 0.25. In this example, all properties with zip code 12345 would be assigned to market A.

If a REIT owned property could not be assigned in the above manner, then each TWR market the REIT property zip code fell within was looked at and the property was placed in the

TWR market with the largest number of square feet. In certain instances, it was not possible to place REIT properties into a TWR market using our criteria because market shares in excess of

100% were being calculated. To correct this problem, TWR markets, which typically had a small number of square feet, were combined into a larger market. Doing this prevented any market concentrations from exceeding 100%.

In addition to sorting problems encountered when assigning properties to TWR markets, there are some REIT owned properties that are located within the markets studied for which zip codes were not obtained. These properties have not been included in our market share analysis and comprise less than 10% of the population. When sorting REIT owned properties at the MSA level, most of the REIT properties that previously were not accounted for at the TWR market level were assigned to an MSA.

Results

Residential table:

The total REIT market penetrations for the MSAs we studied are shown in the following

MSA

Charlotte NC

Tucson AZ

Atlanta GA

Dallas TX

Jacksonville FL

Phoenix AZ

Austin TX

Las vegas NV

Orlando FL

Houston TX

Nashville TN

Albuquerque NM

Tampa FL

Fort Worth TX

Washington DC

Orange County CA

Salt Lake City UT

Baltimore MD

Seattle WA

Denver CO

Oklahoma City OK

Portland OR

Riverside CA

Columbus OH

Mkt Share

9.82%

8.92%

8.80%

8.33%

7.61%

7.32%

6.15%

5.68%

5.40%

4.29%

4.28%

4.26%

3.56%

3.50%

15.76%

13.39%

12.96%

12.79%

12.40%

12.11%

11.79%

11.07%

10.39%

10.18%

MSA

San Jose CA

Indianapolis IN

Kansas City MO-KS

Fort Lauderdale FL

San Diego CA

West Palm Beach FL

Cleveland OH

Oakland CA

Sacramento CA

Wilmington DE

Hartford CT

Stamford CT

Detroit MI

Cincinnati OH

San Francisco CA

Miami FL

St. Louis MO

Minneapolis MN

Chicago IL

Philadelphia PA

Los Angeles

Boston MA

New York NY

Mkt Share

3.34%

3.23%

2.99%

2.98%

2.78%

2.69%

2.65%

2.49%

2.22%

2.21%

1.85%

1.82%

1.68%

1.56%

1.52%

1.33%

1.30%

1.03%

0.75%

0.66%

0.64%

0.17%

0.01%

As expected, the total REIT ownership concentrations are low when compared to the other product sectors. The stock of housing is large, and accumulation of significant market shares will take time and involve tremendous amounts of capital. In addition, REITs may recognize that the potential for market power in the residential sector is limited due to the substitutability of product and the short lease terms.

It is interesting to note that the MSAs with the highest concentrations are located in either

the Southeast or the Southwest. This might be attributed to a newer stock of housing which was developed in large tracks, making it easier to accumulate large concentrations through acquisitions. Older cities, such as New York, Boston, Philadelphia, and Chicago all have small

REIT ownership concentrations. This could be due to higher barriers to entry in older markets than those of the new markets in the Sun Belt. The newer cities have vacant land with fewer restrictions, contributing to the ease of expansion and development by REITs. Another possible explanation is that REITs are focusing on a particular demographic group. The Southeast and

Southwest traditionally have a large number of retirement communities. The REIT's acquisition strategies may be focused on these communities. Unfortunately, our data does not make a distinction between apartment types so we can only speculate.

The following table lists the 50 markets with the highest individual REIT market shares

(see Appendix 1 for a complete list).

REIT

Camden Property Trust

Equity Residential Properties


Irvine Apartment Communities

Security Capital Pacific Trust

Post Properties Inc.

Charles E. Smith Residential

Merry Land & Investment Co.

Walden Residential Properties


Bay Apartment Communities Inc.

United Dominion Realty Trust


Associated Estates Realty

Mid-America Apartment

Town & Country Trust




BRE Properties Inc.

Cornerstone Realty Income Trst



Summit Properties Inc.


MSA

Las Vegas NV

Phoenix AZ

Tucson AZ

Orange County CA

Albuquerque NM

Atlanta GA

Washington DC

Jacksonville FL

Fort Worth TX

Salt Lake City UT

San Jose CA

Charlotte NC

Houston TX

Cleveland OH

Jacksonville FL

Baltimore MD

Austin TX

Orlando FL

Seattle WA

Tucson AZ

Charlotte NC

Charlotte NC

Orlando FL

Charlotte NC

Columbus OH

Mkt Share

2.42%

2.38%

2.26%

2.19%

2.17%

2.08%

2.07%

2.04%

2.03%

2.01%

2.00%

2.00%

1.99%

6.56%

5.22%

4.39%

4.36%

4.20%

3.33%

2.89%

2.86%

2.53%

2.49%

2.46%

2.46%

REIT








Berkshire Realty Co.







Security Capital Atlantic





Avalon Properties Inc.





Gables Residential Trust

MSA

Denver CO

Phoenix AZ

Kansas City MO-KS

Portland OR

Dallas TX

Las Vegas NV

Austin TX

Baltimore MD

Tucson AZ

Oklahoma City OK

Dallas TX

Riverside CA

Charlotte NC

Dallas TX

Atlanta GA

Nashville TN

Jacksonville FL

Charlotte NC

Nashville TN

Stamford CT

Portland OR

Tampa FL

Dallas TX

Las Vegas NV

Atlanta GA

Mkt Share

1.67%

1.62%

1.61%

1.61%

1.60%

1.60%

1.55%

1.54%

1.97%

1.96%

1.90%

1.89%

1.84%

1.77%

1.74%

1.73%

1.72%

1.68%

1.53%

1.53%

1.46%

1.46%

1.46%

1.44%

1.44%

In the top 25 market shares there are 16 different REITs represented. In the next 25 highest market shares there are only 10 different REITs represented. Two conclusions can be drawn from this observation. First, there is a great deal of parity, on a market share basis, among a large number of residential REITs. Therefore, there is a lot of room for consolidation in this sector, which could result in higher concentrations. Second, 10 of the 16 REITs with the top

25

market shares are geographically diverse, which is a possible indication of a national market focus.

Retail

Our analysis of the retail sector involves several approaches to computing market shares.

On the product level we have cut the retail data into two groups. The first group only includes regional and super regional properties. The second group includes all classifications of retail properties. Both of these subsets of data were then evaluated using both the county and the state definition of the relevant market. The following table shows total REIT market penetration for each data group using markets defined at the state level.

State

AL

AR

ID

IL

IN

KS

KY

LA

MA

MD

ME

MI

MN

AZ

CA

CO

CT

DC

DE

FL

GA

HI

IA

Mo

MS

Regional/Super

Regional Retail

Mkt Share

32.68%

43.98%

30.55%

24.22%

36.55%

68.39%

0.00%

3.68%

39.77%

28.19%

4.94%

73.37%

45.58%

34.80%

50.43%

30.11%

21.26%

18.53%

8.97%

44.30%

8.76%

25.50%

27.67%

42.38%

27.43%

All Retail

Mkt Share

16.11%

19.51%

15.48%

14.35%

17.40%

24.35%

6.33%

7.80%

20.65%

17.34%

4.65%

37.10%

23.96%

22.07%

29.09%

18.52%

13.92%

14.99%

5.82%

28.89%

9.92%

21.95%

19.34%

22.57%

13.98%

State

NV

NY

OH

OK

OR

PA

RI

SC

SD

TN

TX

UT

VA

VT

WA

WI

MT

NC

ND

NE

NH

NJ

NM

WV

WY

Regional/Super

Regional Retail

Mkt Share

46.05%

11.92%

25.17%

27.92%

13.11%

22.19%

33.94%

20.09%

13.40%

26.21%

33.59%

17.82%

33.13%

0.00%

25.69%

161.20%

33.81%

33.58%

21.70%

29.84%

0.00%

24.26%

21.65%

35.87%

93.21%

All Retail

Mkt Share

18.09%

11.16%

14.93%

15.81%

6.97%

17.93%

16.79%

15.65%

11.34%

19.71%

13.84%

13.76%

24.81%

2.53%

19.02%

81.47%

21.48%

17.30%

16.23%

18.88%

2.46%

15.84%

16.58%

24.26%

35.96%

Note: In Arkansas, California, Colorado, Florida, Iowa, Idaho, Illinois, Missouri, Pennsylvania, South Dakota, and West Virginia, there were assets that were listed as being owned by two REITS. Thus, by counting these properties twice, the ownership concentrations for those states are larger than they otherwise would be. Because South Dakota is a small market and there were several duplicate properties , the problem is magnified and the REIT market share exceeded 100%.

The regional/super regional market penetrations are consistently higher than the numbers for the data group containing all retail properties. With the exception of the New England States

(excluding Connecticut), Delaware, and North Carolina, the regional/super regional REIT market penetrations are consistently high. We suspect that there is not a significant REIT market penetration in New England because there is a private company, New England Development, which owns a large portion of the regional/super regional malls in the area. High concentrations

are expected at the regional/super regional mall level because the relatively small number of these large assets make accumulation of high market shares relatively easy. In addition, achieving large market shares in the regional/super regional sectors may be an explicit strategy of some REITs due to the potential to exert market power at this level.

Focusing on the markets defined at the state level, we looked at the individual REIT market share in both the regional/super regional data group and at the data set that contained all retail properties. The following table lists the top 50 individual REIT market shares at the state level for the regional/super regional retail data (See Appendix 2 for a complete list).

REIT

Simon DeBartolo Group Inc.

Macerich Co.

JP Realty Inc.

Macerich Co.

JP Realty Inc.


CBL & Associates Properties


Macerich Co.

Macerich Co.


Westfield America Inc.

General Growth Properties Inc.




Taubman Realty Group LP




Rouse Co.

Glimcher Realty Trust




State

SD

SD

WY

MT

ID

IN

WY

IA

IA

ND

KS

CT

CT

FL

AR

MS

CT

MO

NM

TX

IA

WV

NE

TN

IL

Regional/Super Regional

Mkt Share

80.60%

80.60%

62.97%

46.05%

40.16%

37.57%

30.24%

25.85%

25.85%

25.17%

24.87%

21.57%

21.25%

20.89%

18.07%

17.47%

17.30%

17.01%

15.55%

14.99%

14.24%

14.11%

13.99%

12.68%

12.38%

REIT


First Union Real Estate

Colonial Properties Trust


Rouse Co.


Rouse Co.

Macerich Co.



Crown American Realty Trust

JP Realty Inc.



Urban Shopping Centers Inc.

Developers Diversified Realty









JP Realty Inc.

State

NE

WV

UT

AZ

TN

IL

ME

CO

WA

PA

OK

AL

AR vA

WI

NM

MO

Wv

AL

OK

NJ

MI

AR

CO

OH

Regional/Super Regional

Mkt Share

12.18%

11.97%

11.71%

11.50%

11.31%

11.13%

10.96%

10.43%

10.16%

10.16%

9.79%

9.73%

9.70%

9.36%

8.83%

8.76%

8.70%

8.63%

8.50%

8.38%

8.36%

8.18%

8.13%

8.08%

7.91%

A clear pattern emerges when looking at the market shares held by individual REITs investing in regional and super regional retail sites. The larger REITs, such as Simon DeBartolo, Macerich,

Westfield America, and General Growth Properties, consistently have high market concentrations. The ability of these REITs to accumulate high market shares throughout the country indicates three things. First, as we have stated earlier, the large nature and limited number of the assets in this classification make it easy to assemble large concentrations. Second,

REITs are attempting to gain market share on a nation wide basis. Third, the limited number of

REITs in this sector who are significant players may be an indicator of things to come in the

office and apartment sectors. When expanding our analysis at the state level to include all retail property types, the market share numbers decrease. However, the trend is still the same as that of the regional/super regional data.

By focusing on the county definition of the relevant market for both the data set containing the regional/super regional assets and the data set containing all of the retail assets, the market share numbers obviously are much stronger. There are approximately 346 counties throughout the country that contain, on average, 3.6 million square feet of regional and super regional retail space. The average individual REIT market share in the regional/super regional data set is 36.59%, which illustrates the magnitude of the market penetration in this sector. As the following table indicates, in 70 markets REITs have been able to achieve market concentrations of 90% or greater at the county level (see Appendix 3 for a complete list). In these instances, the REIT is likely to control the market.

REIT

Rouse Co.





Prime Retail Inc.

Prime Retail Inc.

Rouse Co.

Rouse Co.





















Rouse Co.


JP Realty Inc.

JP Realty Inc.

Macerich Co.

JP Realty Inc.

State

IN

WV vA

WI

IN

MI

IL

IL

TX

TX

KY

IA

TN

TX

IA

IA

PA

NH

MO

PA

WI

WI

OH

NJ

GA

OH

GA

OH

SD

IA

NY

WY

UT

SD

CA

County

Washington

Greene

Essex

Glynn

Fairfield

Mc Intosh

Cooke

Des Moines

Muscatine

Blair

Merrimack

Cole

Franklin

Sheboygan

Licking

Pennington

Webster

Cayuga

Wayne

Berkeley

Montgomery

Fond Du Lac

Johnson

Calhoun

Sangamon

Madison

Gregg

Midland

Warren

Story

Anderson

Sweetwater

Washington

Pennington

Tulare

Mkt Share

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

REIT

Macerich Co.

JP Realty Inc.

JP Realty Inc.

JP Realty Inc.




Pennsylvania REIT



Macerich Co.


Horizon Group Inc.


Mid-America Realty Investments













Macerich Co.

Macerich Co.



New Plan Realty Trust

Macerich Co.



State

Wv

OH

SC

AL

AL

CA

TN

TX

FL

ND

NM

WY

ID

GA

TX

TX

WV

MN

MN

KS

MN

NE

GA

GA

FL

FL

WV

MT

FL

FL

SC

MO

IA

IA

NY

County

Cass

San Juan

Natrona

Bonneville

Whitfield

Wood

Tuscarawas

Florence

Morgan

Etowah

Santa Cruz

Bradley

Hill

Martin

Adams

Floyd

Lowndes

Citrus

Marion

Brazos

Montgomery

Marion

Blue Earth

Steams

Reno

Kandiyohi

Marion

Cascade

Lake

Lake

Anderson

Camden

Woodbury

Woodbury

Chautauqua

Mkt Share

99.91%

99.91%

99.87%

99.84%

99.81%

99.58%

99.57%

99.28%

99.10%

98.92%

98.74%

98.43%

98.21%

98.21%

97.86%

96.84%

94.10%

94.10%

92.14%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

99.99%

99.99%

99.97%

99.93%

99.92%

Again, at this market definition we are seeing REITs with a national focus accumulating significant market shares.

Office

The office sector is examined at two market levels, the MSA level and at markets defined

by TWR. First the results at the MSA level are discussed and then the results of the TWR submarkets are discussed.

The total REIT market penetration by MSA is listed in the following table:

MSA

San Jose

Jacksonville

Austin

Orlando

Atlanta

Philadelphia

Tampa

Orange County

Dallas

Charlotte

Long Island

Ventura

San Diego

Columbus

Seattle

N. New Jersey

Cincinatti

Las Vegas

Nashville

Boston

Phoeniz

Salt Lake City

Los Angeles

Indianapolis

Baltimore

Washington, D.C.

Mkt Share

15.33%

14.69%

14.46%

14.04%

13.60%

12.68%

12.66%

12.61%

12.21%

11.91%

11.71%

11.31%

11.15%

33.94%

30.05%

29.77%

26.41%

24.31%

23.91%

19.81%

19.31%

19.27%

18.77%

17.20%

17.08%

16.71%

MSA

Chicago

Houston

Denver

Ft. Lauderdale

Stamford

St. Louis

Cleveland

Oakland

Wilmington

New York

San Francisco

Sacramento

West Palm Beach

Albuquerque

Portland, OR

Forth Worth

Riverside

Tucson,,

Bakersfield

Minneapolis/St. Paul

Detroit

Miami

Oklahoma City

Kansas City

Hartford

Mkt Share

7.71%

7.63%

7.59%

7.17%

6.98%

6.36%

5.45%

5.37%

5.03%

4.88%

4.72%

4.64%

4.10%

1.89%

1.70%

1.23%

10.94%

10.50%

10.24%

9.52%

9.04%

8.99%

8.50%

8.46%

7.90%

A clear pattern among these market penetrations is difficult to detect. However, of the 14 MSAs with REIT ownership concentrations greater than 15%, eleven of them are MSAs in which the majority of the office stock has been developed in the last 10 to 15 years.

When lookingat individual REIT ownership concentrations at the MSA level (see

Appendix 4), most of the higher ownership concentrations occur for the larger REITs.

Companies such as Highwoods, Crescent, Duke, Spieker, and Equity Office all have an office portfolio greater than 15 million square feet and also all have several MSAs with ownership concentrations greater than 6%. The REITs with the highest concentrations also have most of their portfolios in a specific region. While Reckson Associates has a 14.6% market share in

Long Island, the only other locations that they have assets in is New Jersey, New York, and

Stamford Connecticut. Highwoods Properties has market shares greater than 10% in three markets: Orlando, Jacksonville, and Tampa. All of Highwoods' portfolio is located in the southeast. Duke also has several markets with concentrations greater than 6%. All of them are in the Midwest, which is where Duke's portfolio is located. While Crescent and Equity Office also have several markets with high concentrations of ownership, both of these REITs have geographically diverse portfolios. However, according to our data, they also are the two REITs with the largest office portfolios, so it is expected that they would have geographically diverse portfolios because of their size.

As discussed earlier in the chapter, each MSA is split into markets defined by TWR.

When looking at the total REIT market penetration for the TWR markets, there is a wide range of ownership concentrations. However, in several markets, there are very high REIT ownership concentrations. A complete list of total REIT market ownership concentrations is in Appendix 5, but a list of the TWR markets with concentrations greater than 50 percent is shown below.

MSA

Los Angeles

Chicago

TWR Market* Mkt Type

Suburban

Orange County Anaheim Stadium Area Suburban

Dallas Richardson/Plano Suburban

Salt Lake City

N. New Jersey

Tampa

Austin

San Diego

San Diego

Dallas

Philadelphia

Unclass. South Bay

West Cook

Research Park

Shorthills/Millburn

I-75/US 301

CBD

East County

UTC

South Dallas

Suburban

Orange County Unclass. Airport Area Suburban

Washington, D.C. Sterling Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Horsham/Willow Grove Suburban

Mkt Share

99.61%

96.33%

87.19%

84.07%

82.56%

82.19%

81.49%

81.22%

80.10%

74.83%

67.60%

66.46%

65.50%

63.55%

MSA TWR Market Mkt Type Mkt Share

Baltimore

Los Angeles

Reisterstown Rd. Corridor Suburban

Beach Cities

San Francisco Brisbane

Los Angeles Westwood

Salt Lake City Interchange

Westchester West 1-287 Corridor

Jacksonville Arlington

Oakland Hayward

Indianapolis Park 100

Seattle 405 Corridor

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

60.96%

60.11%

60.09%

59.98%

57.79%

56.69%

56.10%

Suburban 55.27%

Suburban 53.84%

Suburban 53.49%

Philadelphia Plymouth Mtg/Blue Bell Suburban 52.45%

Tampa SE St. Petersburg Suburban 51.98%

San Jose Mountain View Suburban 50.64%

*

An unclassified market contains properties that do not cleanly fall within an already defined TWR market. For example, the Unclassified South

Bay market could contain properties scattered throughout the South Bay area of the Los Angeles MSA.

Following our market power hypothesis, we expected higher ownership concentrations in downtown areas because there are typically higher barriers to entry in downtown markets than in suburban markets. If REITs were using a market power strategy, we would expect that they would acquire assets in markets with higher barriers to entry so that they could limit competition and exert market power. However, as can be seen from the above table, most of the high market concentrations are in suburban markets, which we found to be surprising.

Appendix 6 lists individual REIT ownership concentrations for the TWR markets. The same REITs that have high market shares for the MSA markets also have high market shares for

the TWR markets. After looking at the MSA results, we expected that individual REITs would have higher TWR market concentrations in areas that the REITs are primarily focused in. This is exactly what we are seeing. For example, Arden Realty has all its assets in California, and has ten Los Angeles markets with ownership concentrations greater than 10%. Duke has ownership concentrations in 22 midwest markets with 13 of them having market concentrations greater than

12%. While there are some extremely high individual REIT market concentrations, they are almost all in the suburban markets. It is possible that the REITs with higher concentrations have a development strategy and find it easier to find development opportunities in the suburbs than downtown areas.

CHAPTER 3

ARE PUBLIC MARKETS PRICING

MARKET POWER STRATEGY?

Introduction

The purpose of this chapter is to determine whether public markets are capitalizing market power into share price. In other words, are REITs implementing a market power strategy? If so, are the public markets recognizing this by paying a higher price for the REIT's stock? When analyzing a REIT's stock for investment, the public markets use the funds from operation ("FFO") multiple as a comparative measure. A higher FFO multiple indicates a lower cost of equity capital which implies greater future growth expectations of the company and the underlying real estate assets. This measure is similar to the market capitalization rate ("cap rate"). The cap rate is a common tool used to value real estate investments, it incorporates the required return, as well as internal and external growth opportunities of real estate investments.

By creating a model that compares the public markets measure of future growth expectations with the more traditional cap rate we hope to isolate the effects of market power strategies on stock prices. In our model the FFO multiple will serve as the dependent variable and the independent variables will be those elements that influence the cap rate. One of the independent variable will be an index that will serve as a proxy for market power. Indices have been constructed using market share data for the apartment, retail and office sectors compiled in the previous chapter. We will first discuss the indices because they provide interesting insight on trends in the three sectors studied. We will then explain the model and examine the statistical results.

The Index

The first step in our attempt to statistically test whether public markets are pricing a market power strategy is to create an appropriate variable to serve as a proxy for market power.

Market share and the elasticities of supply and demand are the key factors that determine whether firms are able to exert market power. The market share of a firm in a given market is a statistic that is quantifiable. The elasticities of supply and demand provide insight on how supply and demand reacts to market power effects, however they are difficult measure to

quantify. Therefore, we have chosen to calculate a market share index to use as the market power variable in our statistical analysis.

Hoping to gain insight on how and when public markets recognize market power as a significant strategy for a given REIT, we have chosen to calculate the market share index in three forms. The first index is a linear weighting scheme; the remaining two are non-linear in weighting and attempt to capture pronounced market power strategies. In each case the index is based on a weighted average of the REITs market share based on the proportion of the REITs portfolio in the studied markets.

Relevant Market

The three indices were computed based on several definitions of the relevant market (i.e.

MSA, county, state, city and markets within a city). How broadly or narrowly the relevant market is defined will have a direct impact on the market share calculations as well as the indices. Since this is exploratory analysis, we have computed the indices for different relevant markets hoping to determine at what level public markets may recognize market power effects.

We also expect to gain insight on whether public markets view the relevant market differently across sectors.

Given the fundamental economic differences between sectors, such as lease terms and tenant flexibility, the relevant markets for each sector have been defined differently. The residential sector is indexed at the MSA level because of the unconstrained product substitutability inherent to the apartment rental industry. The short-term nature of the apartment lease, usually one year, provides great mobility within this sector. Furthermore, apartment renters may reside anywhere they choose because of their ability to commute by car or public transportation to their place of employment.

The retail sector is indexed at both the county and state level. We have chosen to create an index for two relevant markets to determine if the public markets view market power in the retail sector and if so at what level. In the retail sector there are two potential avenues for REITs to exert market power. One is to control the supply of retail space in a specific target market that is defined by the demographics of the retail consumers (the shopper). Within a target market the retail consumer will only travel within a defined geographic area to shop. Most consumers will only travel twenty to thirty miles to shop at a super regional mall. A REIT may choose to control

this market, thus the delineation at the county level. A second avenue for a REIT to exert market power is at a broader market than the one defined by the retail consumer. This market is defined

by the requirements of the retail tenant. For example, retail tenants strategize on which geographic areas to enter. The retail tenants have many location choices with such a large defined area, but if only one REIT owns the majority of the space then the retail tenant would have to rent from the REIT if they wanted to enter that market, thus the delineation at the state level.

The office sector is indexed at two levels; the submarket level as defined by

Torto/Wheaton Research ("TWR") and the MSA level. The submarket level as defined by TWR is delineated by real estate brokers and is the smallest market we could identify. Since real estate brokers represent tenants it must be the tenant's belief that there is a difference in markets within a city. For example, in the Boston area two submarkets, the Back Bay and the Financial District have been defined by TWR. These submarkets are located within two miles of each other.

However, most insurance firms are located in the Back Bay and most financial, legal and real estate firms are located in the Financial District and they do not seem to interchange. This perceived immobility is an incentive to analyze the office sector at this TWR market level. The

MSA level is studied as well because it is unknown at what market level the public markets are able to analyze publicly available information and determine, as well as price, the presence of market power.

Market Share Index Defined

Three indices were formulated for analysis. The first index is probably the easiest to intuitively understand. The index is a weighted average of the REITs market share in the markets studied in this paper. The index first weights the REIT's holdings by dividing the total

REIT's square footage in a particular market by the REIT's total square footage in all of the markets studied. This will be referred to as the portfolio weight for a given market. The portfolio weight is then multiplied to the REIT's market share in the given market. This process is repeated for all markets the REIT has a presence in. The values are then summed to calculate the REIT's market share index.

The second index is the same as the first index with one exception; the market share of the REIT in the submarket is squared. The purpose of squaring the market share is to exacerbate

a large market share and diminish the significance of a small market share. This measures a nonlinear relationship much like the HHI index. The HHI index is utilized by the US government in its antitrust regulation for measuring market share in industries pre and post merger.

The third index is the same as the second index with one exception; the portfolio weight of a REIT's holdings within a given market is squared. The purpose for squaring the second variable is to accomplish the same thing as squaring the market share in the second index. This index like the second index accounts for a non-linear relationship much like the HHI index.

For purposes of the three indices it is implicitly assumed there is no collusion among real estate firms. Thus, unlike the HHI index, which analyzes the market share of the industry, the three indices presented in this paper analyze the market share of the firm.

The Formulas

The Variables Defined

I = Submarket

J=REIT

Market Sharej = Market Share of REITj in Market

SF1, = Total REITj SF in Market

TSFj = Total Square Feet of REITj in the Markets Studied

Portfolio Weightyj = SFIj/TSFj

The Equations

Index 1: Ij [(Market Sharej) x (Portfolio Weightj)]

Index 2: E Ij [(Market Share,J) 2 x (Portfolio Weightj)]

Index 3: E Ij [(Market ShareJ) 2 x (Portfolio Weight J) 2

1

The Results

The three indices defined above were calculated for the apartment, retail and office sectors. As previously discussed the apartment sector was indexed at the MSA level, the retail sector was indexed at the county and state level, and the office sector was indexed at the market level and the MSA level.

In general, the index appears to be a good measure of REIT concentration in the markets studied. However, the index does not distinguish between a geographic concentrated investment strategy and a broader market strategy that involves geographic diversification and market concentration. For example, a high index may indicate either a REIT that is heavily invested in small geographic markets or a REIT that is geographically diversified with high market shares in all invested markets. Geographic diversification and high market concentration probably best reflects a market power strategy.

To provide a comparative analysis among the REITs, the data presented in the tables throughout this section is filtered to display information for only the larger REITs (see Appendix

7 for a complete list). This has been in part to expose trends that are emerging within sectors and to eliminate the companies that are a passive real estate ownership vehicle. Apartment REITs with ten thousand or fewer units in their portfolio were removed. Retail REITs with portfolios of less than five million square feet in total were removed. Office REITs with less than two and one-half million square feet in their total office portfolio were removed.

When analyzed at the MSA level, the apartment sector does not exhibit high market concentrations. For example, Irvine Apartment Communities ("Irvine") has an index of 4.1%.

This is the highest index for this sector. The index indicates that Irvine has on average 4.1% market share in each market in which they invest. Irvine appears to be an exception because it is geographically concentrated in California while Camden Property Trust, Charles E. Smith

Residential, Post Properties, Inc., and Equity Residential Properties all tend to be more geographically diversified. Their index values are on average 2.0%, which means that in all the markets in which they invest they have a 2.0% market share.

Company Name

APARTMENT THE MSA LEVEL

Index

Irvine Apartment Communities 4.1082%





2.6890%

2.6644%

2.2762%

1.9466%

Associated Estates Realty 1.8389%




1.7932%

1.4528%

1.3144%



1.2410%

1.1367%

Copany NIndex

Security Capital Atlantic 1.0986%

Bay Apartment Communities Inc. 1.0286%

Mid-America Apartment 0.8647%


Amli Residential Properties

0.8348%

0.7997%

BRE Properties Inc. 0.7994%

Apartment Investment and Mgmt



0.7144%

0.6830%

0.6355%

Essex Property Trust Inc.

Ambassador Apartments Inc.

0.6024%

0.5812%

The top five REITs have index values between 1.9% and 4.1%. At this point in time, this

suggests the apartment sector has a high degree of product substitution and is freely contested.

As evidenced by the many apartment communities in existence and the ability to enter the market with relative ease by either purchasing or developing an apartment complex. The barriers to entry in the development of a new apartment complex are minimal because the capital required is usually obtainable and the approval and development process is usually not too labor intensive.

The retail index at the county level is probably the most interesting. The concentrations at this level are the highest of all the markets across all three sectors. The retail sector includes all classifications of retail: super regional, regional, neighborhood and shopping center. It is at the super regional and regional level that high concentrations exist because there is almost no product substitution and the barriers to entry are high. The entitlement process for developing a super regional or regional mall is quite labor and capital intensive. Once a real estate company perfects the entitlement process for super regional and regional malls in a given region they most likely have a competitive advantage. It is at the neighborhood and shopping center level that it is probably difficult to obtain large market shares because there are more stores and the barriers to entry are not as high. The analysis includes all four classifications of retail and it is believed that if the index only included super regional and regional malls the index values would be even higher.

Even with all the classifications of retail accounted for the index values at the county level are as high as 40%. The top seven retail REITs with concentrations between 39.7% and

21.6% represent companies with high geographic concentrations or companies that have invested in relatively small markets in which high concentrations can easily be attained. For example,

Crown American Realty Trust is an example of a company that is geographically concentrated with a vast majority of is portfolio in Pennsylvania. First Union Real Estate is geographically diverse, however the markets in which it invests are somewhat small in terms of gross square feet.

Company Name



JP Realty Inc.

Horizon Group Inc.



Prime Retail Inc.

Macerich Co.




JDN Realty Corp.

Mark Centers Trust


Ramco-Gershenson Properties

Rouse Co.


FAC Realty Trust Inc.

RETAIL THE COUNTY LEVEL

Index Company Name

39.7443%

31.0107%

29.4827%

24.9227%

23.6778%

23.4061%

21.6288%

21.5654%

20.9418%

20.7614%

19.4313%

17.9252%

17.1612%

16.4161%

15.2686%

15.0358%

14.0391%

13.7869%

Pennsylvania REIT

IRT Property Co.

Kranzco Realty Trust

Excel Realty Trust Inc.

Regency Realty Corp.



Weingarten Realty Investors

Bradley Real Estate Inc.

Mills Corp.


Pan Pacific Retail Properties

Vornado Realty Trust

Federal Realty Investment

Kimco Realty Corp.

Burnham Pacific Properties

Alexander Haagen Properties

Price REIT Inc.

Index

13.3360%

11.7506%

11.4952%

11.0911%

10.6530%

9.9393%

9.5865%

9.1777%

7.8941%

6.4335%

6.3722%

5.3649%

5.1921%

4.5137%

4.0980%

3.3596%

3.0175%

1.9877%

REITs with diversified portfolios and large market concentrations are Macerich Co. with an index value of 21.5%, Developers Diversified Realty with an index value of 20.9%, and

Simon DeBartolo Group, Inc. with an index value of 19.4%. These are examples of companies with large portfolios that are diversified geographically and on average have market shares of approximately 20% in all invested markets. These index values possess the appropriate characteristic of a possible market power strategy.

At the state level the index values for retail are not as high as the county level. This may be because REITs have identified the supply of retail space in a specific target market as defined

by the demographics of the retail consumers (the shoppers) as the best market in which to achieve high concentrations. This is most likely a direct result of the travel behavior of most consumers. The identified travel time is between twenty to thirty miles which translates into a narrowly defined geographic area. As a result the concentrations are not as high at the state level.

Company Name

JP Realty Inc.


Macerich Co.








Rouse Co.


Pennsylvania REIT






10.9292%

6.9769%

5.9554%

3.6551%

3.2785%

3.2478%

3.2455%

2.7372%

2.6758%

2.6507%

2.4149%

2.3519%

2.2767%

2.2449%

2.1669%

1.9118%

1.8711%

1.7125%

RETAIL THE STATE LEVEL







Kimco Realty Corp.


IRT Property Co.

Mark Centers Trust




Mills Corp.

Horizon Group Inc.


Price REIT Inc.

Prime Retail Inc.


Index

1.6727%

1.5722%

1.4618%

1.4526%

1.3965%

1.3783%

1.2882%

1.2815%

1.0857%

1.0795%

1.0257%

0.9673%

0.8086%

0.7353%

0.6642%

0.5799%

0.5154%

0.4831%

The office data at the TWR market level is probably the most interesting. Both Crescent

Real Estate Equities ("Crescent") and Spieker Properties, Inc. ("Spieker") have high index values

of 25.9% and 24.0% respectively. This value reflects a diversified geographic portfolio with an average market share of 25% in each of the markets they invest. This is both noteworthy and interesting because Crescent's Chief Operating Officer and Speiker's Chairman were both quoted in the introduction to the first chapter as saying "[Crescent] acquires markets, not buildings." and "I am the market" respectively.

Company Name

Crescent Real Estate Equities

Highwoods Properties Inc.

Spieker Properties Inc.

Reckson Associates Realty Corp

Liberty Property Trust

Duke Realty Investments Inc.

Rouse Company

Arden Realty Inc.

Mack Cali Realty Corp.

Brandywine Realty Trust

CarrAmerica Realty Corp.

Equity Office Properties Trust

OFFICE THE SUBMARKET LEVEL


25.9915%

24.0193%

24.0012%

21.3753%

21.3294%

21.0987%

20.1917%

19.6519%

17.2914%

17.2308%

17.0885%

15.4258%

Kilroy Realty Corp.

Cousins Properties Inc.

Cornerstone Properties Inc.


Boston Properties Inc.

TriNet Corporate Realty Trust

Metropolis Realty Trust Inc.

Prentiss Properties Trust

Glenborough Realty Trust Inc.

Prime Group Realty Trust

Great Lakes REIT Inc.

SL Green Realty Corp.

Index

14.1654%

13.2782%

10.5978%

9.3935%

8.1224%

8.0168%

7.8955%

7.7707%

4.9898%

4.6673%

4.3290%

2.1676%

Because the TWR market level is defined as markets within a city there may be agglomeration benefits and supply constraints, such as the geography of the city that may aid in producing high indices. For example, the geography of San Francisco is basically a peninsula and the city is only able to expand to the water. Development may occur on the other side of the bay and is accessible by bridge from San Francisco. However, there are companies that like to

either have the prestigious address of a downtown location or believe there are agglomeration benefits of being located in close proximity to related or competing firms.

The office index at the MSA level produces much different results than those at the TWR market level. At the MSA level all the index values are under 10%. This suggests that REITs are not concentrating on large geographic markets. This could be because it would take a long time and a tremendous amount of capital to accumulate significant market shares in such a large geographic area. It may also be because REITs may recognize they can control TWR markets, due to the agglomeration synergies recognized at smaller market levels, and thus they do not need to acquire significant market share at the MSA level.

Company

OFFICE THE MSA LEVEL

Index





7.6825%

7.5953%

7.2907%

7.1351%

Reckson Associates Realty Corp 6.6196%


Rouse Company


Arden Realty Inc.




6.6094%

6.4003%

6.0572%

5.3403%

5.1501%

4.9713%

4.2319%

Convany Name Index



Kilroy Realty Corp.

2.7953%

1.9833%








1.9064%

1.7184%

1.6822%

1.6203%

1.5827%

1.4478%

1.3676%

1.3201%

Metropolis Realty Trust Inc. 0.8928%

Glenborough Realty Trust Inc. 0.6455%

It is interesting to note that the same REITs occupy the top ten slots in the submarket and

MSA level, although not in the same order. This may due to a dilution effect. For example, a

REIT with a high market share in one of the TWR markets of Boston will probably have a lower market share when analyzed at the MSA level. This is because Boston has a tremendous amount of office space outside the city resulting in a larger denominator diluting the total market share.

In larger MSAs generally characterized by fewer submarkets this dilution will probably be less severe.

Indices two and three (the non-linear weighting scheme) were not discussed because in most cases the same REITs occupied the top five slots, although not always in the same order.

As discussed previously, the differences among the indices account for non-linear relationships and attempts to magnify large market shares and diminish smaller market shares. The indices are relative and must be compared among like indices. A detailed, non-filtered, account of all the indices is included in Appendix 7.

The Model

To determine whether public markets are pricing market power we tried to develop an appropriate statistical model. REITs are going concerns that acquire, manage and dispose of a pool of assets and are fundamentally different from single asset direct-equity investment. REITs with an effective management team that have well executed and defined strategies are valued at a price above the value of the real estate assets that underlie the company's stock. Market power is one potential strategy that the public markets may recognize and pay a premium to the net real estate value.

There are several ways in which this premium can be quantified. At the aggregate level there is the premium to net asset value ("NAy"). The premium to NAV is the ratio of the market value of the REIT to the net asset value of all the real estate assets in the portfolio. This is a sound measure of the premium because it avoids accounting problems that result with cash flow based measurements. However, the premium to NAV requires knowledge of the asset value of the portfolio and accurate real time valuation of a real estate portfolio is difficult. Therefore, this measure may not capture the true value of the underlying real estate assets.

A second measure is the FFO multiple. This is the ratio of the stock price per share to the

FFO per share. FFO is a REIT accounting convention that is calculated by subtracting expenses, general and administrative expenses, and interest from revenues. FFO as defined by NAREIT is net income, minus gains or losses from sales, plus depreciation and deferred taxes and amortized expenses.

3

FFO is subject to criticism primarily because it ignores depreciation. Depreciation in the real estate industry is an accounting vehicle that is somewhat arbitrary because real estate improvements physically depreciate while land usually appreciates. However, ignoring depreciation completely is misleading because real estate improvements do periodically require expenditures for maintenance and tenant improvements and these expenses are usually capitalized. Thus, by omitting depreciation in the FFO calculation results in the exclusion of recurring capital expenditures which is a cost of doing business.

4

Another criticism of the FFO calculation is real estate firms are allowed to straight-line rents over the term of a lease. This may over inflate their current income. Despite the above-mentioned criticisms, the FFO multiple is widely used to compare REITs because it is an effective comparative measure. All else equal,

3 Eric I. Hemel and Virginia M. Dawson, Comparative Valuation ofREITs, Merrill Lynch, April 1998, page 3.

4 Hemel and Dawson, page 3.

a high FFO multiple indicates a lower cost of equity capital and therefore higher future growth expectations.

The public entity capitalization rate ("cap rate") can be expressed algebraically as r-gi-

AgE. This algebraic equation approximately equals the inverse of the FFO multiple.

5

The r term denotes the required rate of return on the REIT's assets. Factors that influence this rate of return are liquidity, capital structure, the risk of the underlying assets, the tenure form (UPREIT), potential internal conflicts or alignments of interest, and whether a company uses retained earnings to finance growth (payout ratio). The g, term denotes the growth rate of income from existing assets. A REIT's ability to manage same store growth is included in this component and is characterized by strategies such as cost economies of scale and branding. The AgE term denotes the rate of growth of cash flows that result from strategies focused on opportunity external to the company. In other words, AgE is the external growth from active management and is basically the market's psychology and opinion of the management of the REIT. These strategies include vertical integration and the ability to increase rents vis-A-vis exerting market power.

It is the growth opportunities that result from strategies such as market power that is the core of our study. It is known that a higher FFO multiple indicates a lower cost of equity capital which indicates greater future growth expectations. It is also known that the public entity cap rate accounts for the required return, internal growth and external growth. Further, it has been established that the inverse of the FFO multiple approximately equals the cap rate. Thus, it is this relationship between the FFO multiple's indication of future growth expectations and the public entity cap rate's ability to account for internal and external growth opportunities that is the basis of our model. The FFO multiple will be the dependent variable while the independent variables will be those elements that influence the cap rate.

The Variables

The statistical model was designed to identify a significant relationship between the market share index and the FFO multiple. The goal was to determine if the public markets are pricing market power. In these regressions we controlled for other variables that may affect this

5

This relationship is precise in the long run and in the absence of debt because the FFO resembles NOI.

premium. The independent variables are: size, liquidity, capital structure, asset risk, UPREIT structure, potential internal conflicts or alignment of interest, payout ratio, a market weight index

(apartment and office only), diversity (office only), cost economies, paper clip structure and the market share index.

The SIZE VARIABLE is the total market capitalization of the REIT. It is defined as total debt outstanding plus preferred stock outstanding plus the market value of the equity. We expected this coefficient to be positive because the greater the size variable the more liquidity, cost economies or market power the REIT may possess. Its believed the public markets view this positively resulting in a higher FFO multiple.

The LIQUIDITY VARIABLE is the annualized thirty-day daily volume divided by the float shares. The float was calculated by determining the number of outstanding shares minus those held by corporate insiders.

6

This variable should provide an understanding of the liquidity of the stock. We expected this coefficient to be positive because the higher the volume variable the more liquid the stock. Investors prefer greater liquidity and when a REIT can withstand numerous trades it is believed the result would be a higher FFO multiple.

The CAPTIAL STRUCTURE is the preferred stock plus total debt divided by the total market capitalization. The capital structure variable will provide an understanding of the debt carried by the REIT and the inherent risk of the stock. We expected this coefficient to be negative because the more debt a REIT has, the riskier their cash flows are and the higher their cost of capital. This results in a lower FFO multiple.

The ASSET RISK is a dummy variable denoted by a one or zero; one if the REIT is currently engaged in development and zero if it is not. Development is inherently risky and this variable is designed to measure the risk of the REIT's assets. We expected this coefficient to be positive because if a REIT engages in development, they are foregoing short-term cash flows to finance the project. Therefore, FFO is reduced and the FFO multiple is greater.

UPREIT STRUCTURE is also a dummy variable, one if the REIT used an UPREIT structure and zero if not. The UPREIT structure differs from the traditional REIT structure because the real estate assets are owned by an operating partnership rather than by the REIT directly. This structure enables a company to defer the tax implications of swapping existing assets for ownership units in a newly formed company. This ownership vehicle also allows a

6 Hemel and Dawson, page

7

REIT to grow through acquisition of real estate assets by using the partnership units as a form of currency. The partnership units are in effect a form of capital that is less expensive by an amount equal to the present value of the deferred taxes. We expected this coefficient to be positive because the REIT can grow through acquisitions utilizing their partnership units as a source of cheaper capital. This results in a higher FFO multiple.

The REIT structure has the potential for INTERNAL CONFLICTS OR ALIGNMENT

OF INTEREST among the owners. The conflict is apparent in an UPREIT structure when the owners of the partnership units will incur a tax liability when the properties they contributed are sold. The conflict arises when a transaction involving the contributed assets is in the best interest of the stockholders but the owners of the partnership units may not want to pursue this transaction because they will incur a personal tax liability. Even in light of the above-mentioned conflict, many view the UPREIT structure as a positive ownership vehicle where the owners' alignment of interest is satisfactory. This is probably because of the belief that if an individual has a vested monetary interest they will work harder to achieve exemplary results. This variable is defined as the percentage of stock that is held by management. Depending on the perspective of the public markets this variable can be either positive or negative. If the public markets believe there is a conflict of interest then the coefficient will be negative resulting in a lower

FFO multiple. However, if the public markets believe there is an alignment of interest the coefficient will be positive resulting in a higher FFO multiple.

The PAYOUT RATIO is calculated by dividing the dividend per share by the FFO per share. The ratio used in the regression is defined as the current dividend per share divided by the

1998 estimated FFO per share. This variable measures the reinvestment policy of the REIT. The lower the payout ratio the higher the reinvestment. A higher reinvestment policy is a potential signal by management that the company has good growth prospects. We expected this coefficient to be negative because the higher the payout ratio, the lower the reinvestment in future acquisitions thus the lower the growth expectations. This results in a lower FFO multiple.

The MARKET WEIGHT INDEX is the percent of a company's portfolio that is included in the markets studied. This variable is designed to control for the fact that some of the office and apartment REIT's assets are not in the markets studied. For example, if one of the

REITs is invested in a market that is not reflected in this study then this variable weights the ownership and attempts to minimize this discrepancy. The intent of the variable is to produce an

equal comparison. We expected this coefficient to be positive because the markets studied are the larger, well known markets and we believe the public markets afford higher prices to securities when they are able to easily obtain information on the underlying asset. Also, the public markets may believe the growth opportunities are greater in these larger, well known markets. Thus, this results in a higher FFO multiple.

A DIVERSITY VARIABLE has been included in our model of the office sector. This variable controls for REITs that are diversified across property types. It is a zero-one variable with a value of one if a REIT has at least 50% of its holdings in office assets and zero if not. The purpose of this variable is to control for pricing effects for diversified REITs. We expected this coefficient to be positive because the more specialized the REIT in its particular sector, apartment, retail or office the more efficient the REIT should be in its business. Thus, this should result in a higher FFO multiple.

COST ECONOMIES are defined as general and administrative expenses divided by net operating income. This measure was chosen because general and administrative expenses capture the basic daily costs of operation for the REIT. This is considered a good measure in which to compare efficiencies because it does not include debt service, interest and depreciation.

We expected this coefficient to be negative because the higher the ratio of general and administrative expenses to operating income the less efficient the REIT. This should result in a lower FFO multiple.

The PAPER CLIP is dummy variable denoted by a one or zero. One if the REIT employs the paper clip structure and zero if it does not. The paper clip structure is a legal structure utilized by some REITs to replicate the tax sheltering benefits of REITs with pairedshare status. REITs with either the paired share or paper clip status are able to shelter at least some non-real estate related revenue from corporate taxation. This legal form has allowed

REITs to grow through vertical integration. We expected this coefficient to be positive because if a REIT has or utilizes the paper clip structure then they are afforded growth opportunity vis-avis the tax shelter benefits. This should result in a higher FFO multiple.

The MARKET SHARE INDEX is the proxy for market power calculated and discussed in the beginning of the chapter. Using this index we hope to determine if public markets are capitalizing market power into share price. We expected this coefficient to be positive because if a REIT has a greater market share index then the public markets would recognize this as a

market power strategy resulting in a higher FFO multiple.

The Sample Data

The majority of the data used in the statistical model is from Merrill Lynch's publication

Comparative Valuation of REITs dated April 13, 1998. Appendix 8 contains a complete listing of the REITs and variables. In addition to information obtained through the Merrill Lynch report, information on whether REITs are currently involved in development was obtained through an interview with Matthew Ostrower, Equity Analyst, Boston Financial. FFO multiples where obtained from Morgan Stanley Dean Witter's publication The REIT Book Morgan

Stanley Dean Witter's Equity REIT Monthly Statistical Review dated April 30, 1998 and by examining individual REIT's annual or 10-K reports.

The data compiled in aggregate is for sixty-three REITs 18 residential, 27 retail and 21 office. Due to the small sample sizes caution should be taken when analyzing the regression results. There is the potential for outliers to bias our variables. Despite this caveat, the results do provide valuable information on how the public markets view the market power strategy. In addition, the results also provide insight on how the public markets perceive the variables.

Regression Results

The above statistical model was estimated for the apartment, retail and office sectors.

The regressions for each sector include a separate analysis of the three indices outlined above. In the retail and office sectors our analysis is also conducted using two definitions of the relevant market. There was tremendous variation in the regression results across the three sectors and across the relevant markets. Some of this variation, as with exploratory research was expected, while some was unanticipated. The analysis of the apartment sector indicates that market power does not currently exist. However, the regressions of the office and retail sectors produced some surprising results. The regressions indicate that there is a statistically significant relationship between the FFO multiple and the market share index in the office and retail sector. However, the public markets are placing a negative value on the index! Despite this counter intuitive result, there is valuable information on how the market power strategy is viewed by the public markets as well as some general insight on what variables the public market perceive as

important future growth indicators.

When discussing the following regression results we will present the results that correspond to the results from index one. The size of the coefficients and the range of the t-stats, in general, did not vary significantly between regressions; therefore, we present the results from index one when discussing the magnitude of the variable's impact. Appendix 9 contains a complete listing of the regression results for all the indices.

Residential

The results from the residential sector reveal that market power, as a viable strategy is insignificant. The regressions using each of the three indices consistently indicate that our proxy for market power is not a significant variable. As discussed previously, the economic fundamentals and the structural characteristics of the apartment sector do not favor market power effects. Especially since the industry is currently characterized by low market share numbers.

The factors that influence this predisposition are the lack of barriers to new entrants into the market, as well as the willingness of the consumers to substitute one housing product for another.

The regression results do provide insight on the factors that the public markets believe influence future growth in the apartment sector. The following table contains the regression results.

Residential MSA Level Index 1 Regression Results

Variables Coefficients tStat

Intercept

Size

Liquidity

Capital Structure

Asset Risk

UPREIT

Payout

Conflict of Interest

Cost Economies

Market Weight

Market Share 1

16.39321

0.00109

-1.11159

-7.05104

0.49953

0.19434

-10.62982

-0.02704

39.33943

4.24016

-25.46609

4.03530

4.51935

-0.98838

-1.34121

0.44502

0.28975

-1.50294

-0.32625

2.44876

2.09045

-0.71826

R Square

Number of Observations

0.9122

18

The statistically significant variables are size, cost economy and the market weight index. The tstat for the size variable is 4.52. The coefficient is positive and is interpreted as for every one billion-dollar increase in the total market capitalization the FFO multiple will increase by 1. This variable indicates that a critical mass, a large REIT, may be required to continue to grow. It is the larger companies that are likely to lead consolidation within this sector. The larger

companies are currently being rewarded by Wall Street with higher FFO multiples and therefore a lower cost of capital.

The cost economy variable is statistically significant with a t-stat of 2.45. However, the sign of the coefficient is positive. This means that for every ten-percentage point increase in general and administrative expenses to net operating income the FFO multiple increase by 3.9.

This coefficient is large and its sign is contrary to intuition. If a company is able to manage its assets efficiently, which we have defined as a low ratio of general and administrative expenses to net operating income, it would seem reasonable that the public markets would recognize this efficiency with a higher price relative to revenue. Resulting in a lower cost of capital for the efficient REIT. However, this does not appear to be the case according to the regression results, which indicate we may be missing a critical relationship or general and administrative expenses to net operating income is not a good measure of cost economy. A variable that captures a company's ability to operate existing assets may to a better job effectively capturing the effects of a cost economy strategy.

The market weight index is statistically significant with a t-stat of 2.09. This means that for a ten-percentage point increase in market share the FFO multiple increase by approximately four-tenths. The significance of the market weight index variable indicates that public markets view the greatest growth potential in the 50 largest MSAs.

Retail

In the retail sector, we have calculated two indices of market power, first at the county level and then at the state level. The regression results are shown in the following table.

Retail County Level Index 1 Regression Results

Variables Coefficients t Stat

Intercept

Size

Liquidity

Capital Structure

Asset Risk

UPREIT

Payout

Conflict of Interest

Cost Economies

Market Share County 1

15.25715

0.00029

3.07581

1.69095

-0.78287 -0.58560

-5.25193

0.32937

-0.44496

-1.21621

0.36054

-0.46955

-0.05646 -0.28732

-0.00128 -0.06682

6.82088 0.86267

-10.53887 -2.17516

RLquare

Number of Observations

0.53315

27

Retail State Level

-

Index 1 Regression Results

Variables Coefficien t Stat

Intercept

Size

Liquidity

Capital Structure

AssetRisk

UPREIT

Payout


Cost Economies

Market Share State 1

10.10452 2.04400

0.00033 1.61257

0.20393

-5.46704

0.27781

-1.45206

4.22857

0.00137

8.15382

4.92507

0.25182

-1.12125

0.26528

-1.48671

0.80711

0.06357

0.90373

0.25674

RSquare

Number of Observations

0.40552

27

The market power variable is statistically significant in the regressions using the county level as

the relevant market. To further complicate matters, the sign of the coefficient for the market power variable in these regressions is negative, indicating that the public markets negatively view high concentrations of REIT ownership. A possible explanation for this counter-intuitive effect is, there are two opposing forces captured in the market power variable. There appears to be two distinct groups of REIT's with high index values. One group is geographically diverse with significant market shares in each market in which it invests. The second group is geographically concentrated with significant market shares in each market in which they have a presence. The public market could be pricing these two types of REITs differently, thus obscuring a positive market power effect in the statistical analysis. Unfortunately, none of the independent variables at the state or county level other than the market share index at the county level are statistically significant.

Office

In the office sector, we used two definitions of the relevant market for the calculation of the market power indices. In this case, the market boundaries are drawn at the TWR market level and the MSA level. The market power variable is statistically significant using the three market power indices for the TWR market level. However, in every instance the coefficient of the variable was negative, indicating that the markets are negatively reacting to large market shares. As illustrated previously in the discussion on the results for retail, the index may be capturing two effects. Firms that are following a market power strategy across geographic regions or those that have remained geographically concentrated choosing to accumulate significant market shares in the markets from which they originated. The public markets could be punishing the REITs that are reluctant to expand out of their geographic niche and rewarding a geographically diverse market power strategy. These two effects could be captured in the index and thus are not distinguishable. If this is the case the punishment of the REITs without geographic diversity seem to out-weigh the market power effects of a diverse strategy.

For each of the three TWR market indices, the model was effective in explaining what the public markets view as the indicators of growth. The statistically significant variables are size, capital structure, conflict or alignment of interest, and the market weight index. The following table contains the regression results using index 1 and the TWR markets.

Office TWR Market Level Index 1 Regression Results

Variables

Intercept

Size

Liquidity

Capital Structure

Asset Risk

UPREIT

Payout

Diversity


Cost Economies

Paper Clip

Market Weight

Market Share Sub 1

Coefficients t Stat

14.70668 2.66937

0.00035

-0.21381

2.36672

-0.19652

-10.98468 -1.73631

1.12804

1.71583

-3.92638

-0.93161

0.10008

-6.99397

1.43984

1.27857

-0.72672

-1.10836

1.80529

-0.81427

0.70898

4.33048

-9.54315

0.38189

1.89524

-2.22090

R Square

Observations

0.82147

21

The size variable is statistically significant with a t-stat of 2.36. The coefficient is positive and is interpreted as for every one billion-dollar increase in the total market capitalization the FFO multiple will increase by 3. This indicates that there may be an emerging disparity between the growth prospects of firms of varying sizes. Those firms that have achieved a critical mass are rewarded with a high FFO multiple and therefore a lower cost of capital which can be used to spur further growth. While small firms are punished with low FFO multiple and therefore a higher cost of capital and stunted growth.

The capital structure variable is relatively strong in the regressions with a t-stats of 1.74.

This means that for every ten-percentage point increase in capital structure the FFO multiple decreases by 1.1. In each case the sign of the coefficient is negative indicating firms with high debt levels have lower FFO multiples, inferring lower growth expectations.

The conflict or alignment of interest variable that is an indication of the percentage of insider ownership is relatively strong with a t-stats range of 1.81. The means that for every tenpercentage point increase in the percentage of stock held by management increases the FFO multiple by approximately 1. In each case the coefficient is positive indicating that the greater the level of inside ownership the greater the FFO multiple and therefore the greater the growth prospects. This is a case of the REIT management's interest being aligned with the shareholders and the apparent benefits to the company when this is the case. However, this relationship may not hold as the percentage of inside ownership increases resulting in possible conflicts of interest.

The market weight index variable that controls for percentage of the REIT's portfolio in the studied market is statistically significant with a t-stats of 1.90. This means that for every ten-

percentage point increase in the percentage of portfolio owned in the studied markets results in an increase in the FFO multiple of approximately four-tenths. In all three submarket levels the coefficients are positive indicating that the public markets reward REITs that invest in the fifty largest MSA's.

The regression results in the office sector using a market definition drawn at the MSA level is less significant than those discussed at the submarket level. None of the independent variables show up as statistically significant using any of the index calculations. This demonstrates that the submarket maybe a more appropriate definition of the relevant market in the office sector than at the MSA level. The following table contains the regression results.

Office MSA Market Level Index 1 Regression Results

Variables Coefficients t Stat

Intercept

Size

17.42031

0.00038

2.48924

2.29178

Liquidity

Capital Structure

-0.48831 -0.40563

Asset Risk

UPREIT

Payout

Diversity

-11.55716 -1.59679

1.07101 1.22420

0.84622

-8.78433

0.56574

-1.31141

-0.98407 -1.03985

Conflict of Interest 0.08049 1.32134

Cost Economies

Paper Clip

-3.24295

-0.08657

-0.30344

-0.04285

Market Weight 4.81966 1.43784

Market Share MSA 1 -18.00048 -0.95964

R Square

Observations

0.78141

21

Conclusion

Our attempt to measure market power has had a variety of results. In the apartment sector, the market power coefficient was not statistically significant. As discussed earlier the economic fundamentals and structural characteristics of the apartment sector do not favor market power effects. The retail sector has the strongest market fundamentals for market power to exist

the presence of high market shares, high barriers to entry and low product substitutability.

However, the results were counterintuitive, at the county level the market power variable was significant but the coefficient was negative, indicating that our variable was capturing an additional effect. At the state level the market power variable was insignificant. The results in the office sector were similar to those in the retail sector. The market power variable was statistically significant at the TWR market level, however, the negative coefficient is counter to

our hypothesis. At the MSA level the market power variable was insignificant.

Despite our inconclusive results we feel that market power can exist. The concentration levels in the retail sector are substantial in several markets. This coupled with the economic fundamentals of the sector, in particular regional and super-regional properties, suggest that some firms have the ability to control rents. In the office sector there are particular markets where the combination of high market shares, agglomeration effects (such as in some downtown markets), and barriers to entry provide the opportunity for firms to exert market power.

Our analysis looked at a REIT's entire portfolio and attempted to determine if market power is capture in the stock price. It is not clear that our indices are the correct proxy for market power. The indices fail to make a distinction between geographically concentrated

REITs with high market shares and REITs that are pursuing high concentrations as part of a geographically diverse strategy. In addition, the indices are not sensitive to markets with different market fundamentals (i.e. suburban versus downtown office markets). Controlling for these deficiencies we believe the results would have proved market power is currently being exerted in some instances.

CHAPTER 4

CONCLUSION

This thesis has explored the viability and existence of market power in the residential, retail, and office product sectors by measuring each individual REIT's market share. The recent re-emergence of REITs as large players in the real estate industry is changing the landscape of real estate investment. As of fourth quarter 1997, REITs had easy access to public capital and were acquiring large portfolios of property. If REITs continue to acquire large geographically concentrated portfolios, the question of whether REITs can accumulate enough property to control markets and raise rents is a compelling topic. This is because it could represent a fundamental shift in the way real estate assets are viewed: from a passive asset by asset investment strategy to a more dynamic strategic positioning of asset portfolios.

The thesis provided an analysis of REIT's market shares in varying relevant markets for the residential, retail, and office sectors. The apartment sector is analyzed at the MSA market level. The results show there are many residential REITs which have not accumulated significant market shares.

The market share analysis of the retail sector provided some interesting insights because individual REITs have accumulated the greatest market shares in this sector. Specifically, when looking at concentrations of REITs investing in regional and super-regional properties, impressive market shares have been achieved at the county level. In each of the 346 counties in which REITs own regional and super-regional malls, REITs have an average market share of

36%. In addition, in 70 of the counties, REITs have market shares of at least 90%. Our analysis also reveals that there are a few, larger firms that are dominant in the retail sector. It appears that this sector is further along in its development into a mature, consolidated industry, possibly foreshadowing trends in the other sectors studied.

The most notable results in the office sector were at the market levels defined by Torto

Wheaton Research ("TWR"). At this level, individual REITs were able to achieve high market shares. The surprising result was that the majority of the TWR markets with high concentrations were in the suburbs. This was not expected because if a REIT has a market power strategy it would be expected that the REIT would enter markets with high barriers to entry and low contestability. These characteristics are typical of downtown markets, thus we expected to see

higher market shares in downtown markets. The REITs that achieved high market shares tended to be regionally focused. This is probably because they chose to expand in the markets in which they originated. Thus, unlike the more mature retail sector, there is more room in this sector for future consolidation.

We created three market share indices from our calculated market shares. The results of the indices varied for each sector. In the apartment sector, there were not high index values.

This is probably due to low barriers to entry and the freely contestable nature of the market. In the retail sector we found the highest index values. This is probably to due to the high barriers to entry and low contestability of the market. For the office sector, higher index values were found at the TWR market level than at the MSA level. This is probably because it is easier to accumulate large market shares in smaller geographic markets and/or because REITs could recognize that they can control smaller markets due to tenants' desires to stay in those smaller markets for agglomeration synergies.

To determine if the public markets are capitalizing high market shares into share price, we developed a statistical model which used the above market share indices to serve as a proxy for market power. The regressions produced some surprising results. The market share index, although statistically significant, produced a negative coefficient in the office and retail sectors.

This result is counter intuitive. However, we believe there might be market power effects and the index is possibly capturing two distinct groups of REITs with high index values. The first group consists of REITs that have high market shares but do not have geographically diverse portfolios. The other group consists of REITs that have high market shares but do have geographically diverse portfolios. The public markets could be pricing these two groups differently, thus obscuring a positive market power effect in the analysis. Also, the sample size used in the regressions is small and caution should be taken when analyzing the results. There is the potential for outliers to bias the variables. Additionally, it is also possible that it is just too early to see any potential market power effects.

APPENDIX 1

INDIVIDUAL REIT MARKET CONCENTRATIONS

FOR THE RESIDENTIAL SECTOR

MSA

Las Vegas NV

Phoenix AZ

Tucson AZ

Orange County CA

Albuquerque NM

Atlanta GA

Washington DC

Jacksonville FL

Fort Worth TX

Salt Lake City UT

Dallas TX

Riverside CA

Charlotte NC

Dallas TX

Atlanta GA

Nashville TN

Jacksonville FL

Charlotte NC

Nashville TN

Stamford CT

Portland OR

Tampa FL

Dallas TX

Las Vegas NV

Atlanta GA

Tucson AZ

Jacksonville FL

Nashville TN

Houston TX

Phoenix AZ

Hartford CT

Salt Lake City UT

Atlanta GA

Austin TX

San Jose CA

Charlotte NC

Houston TX

Cleveland OH

Jacksonville FL

Baltimore MD

Austin TX

Orlando FL

Seattle WA

Tucson AZ

Charlotte NC

Charlotte NC

Orlando FL

Charlotte NC

Columbus OH

Denver CO

Phoenix AZ

Kansas City MO-KS

Portland OR

Dallas TX

Las Vegas NV

Austin TX

Baltimore MD

Tucson AZ

Oklahoma City OK

Jacksonville FL

Tucson AZ

Houston TX

Oklahoma City OK

Tucson AZ

Sacramento CA

Fort Worth TX

Austin TX

Charlotte NC

Albuquerque NM

REIT




















BRE Properties Inc.




































Grove Property Trust









BRE Properties Inc.





Mkt Share

1.84%

1.77%

1.74%

1.73%

1.72%

1.68%

1.67%

1.62%

1.61%

1.61%

1.60%

1.60%

2.01%

2.00%

2.00%

1.99%

1.97%

1.96%

1.90%

1.89%

2.46%

2.46%

2.42%

2.38%

2.26%

2.19%

2.17%

2.08%

2.07%

2.04%

2.03%

6.56%

5.22%

4.39%

4.36%

4.20%

3.33%

2.89%

2.86%

2.53%

2.49%

1.34%

1.32%

1.31%

1.30%

1.27%

1.27%

1.27%

1.23%

1.22%

1.21%

1.21%

1.20%

1.19%

1.18%

1.17%

1.15%

1.55%

1.54%

1.53%

1.53%

1.46%

1.46%

1.46%

1.44%

1.44%

1.44%

1.42%

1.40%

MSA

Fort Worth TX

Austin TX

Salt Lake City UT

Detroit MI

Salt Lake City UT

Austin TX

Austin TX

Wilmington DE

Miami FL

Indianapolis IN

Minneapolis MN

San Jose CA

Orlando FL

Phoenix AZ

Oklahoma City OK

Orange County CA

Salt Lake City UT

Houston TX

Fort Worth TX

Phoenix AZ

Houston TX

Oakland CA

Orlando FL

Nashville TN

Austin TX

Indianapolis IN

Orlando FL

Jacksonville FL

Baltimore MD

Albuquerque NM

Houston TX

Orlando FL

Albuquerque NM

Nashville TN

Charlotte NC

Dallas TX

Seattle WA

Tampa FL

Jacksonville FL

Denver CO

Washington DC

Atlanta GA

Fort Lauderdale FL

Orlando FL

Tampa FL

Washington DC

St. Louis MO

Seattle WA

Dallas TX

Dallas TX

Austin TX

Albuquerque NM

West Palm Beach FL

Riverside CA

Phoenix AZ

Houston TX

Wilmington DE

Tampa FL

Tucson AZ

Jacksonville FL

Atlanta GA

Oakland CA

Nashville TN

Seattle WA

San Diego CA

Phoenix AZ

Tampa FL

Nashville TN

Columbus OH

REIT























BRE Properties Inc.



BRE Properties Inc.





National Income Realty Trust







Home Properties of New York

BRE Properties Inc.



Pennsylvania REIT







Banyan Strategic Realty Trust




Apple Residential Income Trust







Century Realty Trust




BRE Properties Inc.






Mkt Share

0.88%

0.88%

0.85%

0.84%

0.83%

0.82%

0.82%

0.81%

0.78%

0.78%

0.78%

0.76%

0.74%

0.74%

0.74%

0.71%

0.71%

0.70%

0.99%

0.99%

0.99%

0.98%

0.98%

0.97%

0.97%

0.96%

0.94%

0.92%

0.92%

0.91%

0.91%

0.90%

0.90%

0.69%

0.69%

0.66%

0.66%

0.65%

0.65%

0.64%

0.64%

0.64%

0.64%

1.14%

1.12%

1.07%

1.07%

1.07%

1.06%

1.06%

1.05%

1.04%

1.02%

1.02%

1.01%

1.00%

1.00%

1.00%

1.00%

0.99%

0.99%

0.63%

0.62%

0.62%

0.61%

0.61%

0.61%

0.61%

0.61%

REIT





Boddie-Noell Properties Inc.












BRE Properties Inc.





Pacific Gulf Properties Inc.







Transcontinental Realty




BRE Properties Inc.


BRE Properties Inc.








BRE Properties Inc.












BRE Properties Inc.


BRE Properties Inc.






Continental Mortgage & Equity







MSA

San Diego CA

Nashville TN

Fort Worth TX

Fort Worth TX

Charlotte NC

Fort Worth TX

San Francisco CA

Nashville TN

Austin TX

Hartford CT

Kansas City MO-KS

Dallas TX

Nashville TN

Oakland CA

Dallas TX

Indianapolis IN

Riverside CA

Las Vegas NV

Orange County CA

Fort Worth TX

Orlando FL

Albuquerque NM

Dallas TX

San Francisco CA

Sacramento CA

San Francisco CA

Tampa FL

Riverside CA

Oklahoma City OK

Tampa FL

Orlando FL

Denver CO

Philadelphia PA

Dallas TX

Indianapolis IN

San Diego CA

Washington DC

Oakland CA

Nashville TN

Phoenix AZ

Orlando FL

Baltimore MD

Orange County CA

Tampa FL

San Diego CA

Wilmington DE

Washington DC

Atlanta GA

Tampa FL

Seattle WA

Sacramento CA

West Palm Beach FL

Dallas TX

Denver CO

Tampa FL

Charlotte NC

Tucson AZ

Atlanta GA

Portland OR

Dallas TX

Orange County CA

Atlanta GA

Las Vegas NV

Columbus OH

Houston TX

Tampa FL

Austin TX

Tampa FL

Fort Lauderdale FL

Mkt Share

0.60%

0.58%

0.58%

0.56%

0.56%

0.55%

0.55%

0.46%

0.46%

0.45%

0.45%

0.44%

0.44%

0.44%

0.44%

0.44%

0.44%

0.43%

0.42%

0.42%

0.42%

0.42%

0.41%

0.40%

0.40%

0.40%

0.55%

0.54%

0.54%

0.53%

0.53%

0.52%

0.52%

0.51%

0.51%

0.50%

0.50%

0.50%

0.49%

0.49%

0.48%

0.48%

0.48%

0.47%

0.47%

0.40%

0.40%

0.39%

0.39%

0.39%

0.39%

0.39%

0.38%

0.37%

0.37%

0.37%

0.37%

0.36%

0.36%

0.36%

0.35%

0.35%

0.34%

0.34%

0.34%

0.34%

0.34%

0.34%

0.34%

REIT



Pennsylvania REIT






BRE Properties Inc.

CenterPoint Properties Trust


Roberts Realty Investors Inc.

Washington REIT





Pennsylvania REIT







































Pennsylvania REIT







Pennsylvania REIT






Mkt Share

0.33%

0.33%

0.33%

0.33%

0.33%

0.33%

0.27%

0.26%

0.26%

0.26%

0.25%

0.25%

0.25%

0.25%

0.25%

0.29%

0.28%

0.28%

0.28%

0.27%

0.27%

0.27%

0.27%

0.27%

0.27%

0.32%

0.31%

0.31%

0.31%

0.30%

0.30%

0.30%

0.30%

0.30%

0.29%

0.29%

0.29%

0.22%

0.22%

0.22%

0.21%

0.21%

0.21%

0.20%

0.20%

0.20%

0.20%

0.19%

0.19%

0.19%

0.19%

0.19%

0.19%

0.24%

0.24%

0.24%

0.24%

0.24%

0.23%

0.23%

0.22%

0.22%

0.22%

0.18%

0.18%

0.18%

0.18%

0.18%

0.18%

MSA

Kansas City MO-KS

Fort Lauderdale FL

West Palm Beach FL

Charlotte NC

Washington DC

Columbus OH

Oklahoma City OK

Indianapolis IN

Portland OR

Cincinnati OH

Fort Worth TX

Atlanta GA

Washington DC

Houston TX

Stamford CT

Dallas TX

Las Vegas NV

Fort Lauderdale FL

Atlanta GA

Orange County CA

Washington DC

Orange County CA

Charlotte NC

West Palm Beach FL

Minneapolis MN

Cleveland OH

Charlotte NC

Jacksonville FL

Atlanta GA

Cincinnati OH

Atlanta GA

San Diego CA

Cincinnati OH

Atlanta GA

Orlando FL

Tampa FL

West Palm Beach FL

Houston TX

Fort Lauderdale FL

Washington DC

Austin TX

Atlanta GA

Fort Worth TX

Detroit MI

Washington DC

Detroit MI

San Francisco CA

Nashville TN

Indianapolis IN

Orlando FL

Jacksonville FL

Chicago IL

Tampa FL

Fort Lauderdale FL

Oakland CA

St. Louis MO

Baltimore MD

Orange County CA

Indianapolis IN

Cincinnati OH

Indianapolis IN

Cincinnati OH

Los Angeles CA

Orlando FL

West Palm Beach FL

Detroit MI

Las Vegas NV

Houston TX

Fort Worth TX

REIT


Pennsylvania REIT

MGI Properties





American RE Investment Corp.



















Sizeler Property Investors


Income Opportunity Realty









Vinings Investment Properties



Pennsylvania REIT




Tarragon Realty Investors Inc










Mkt Share

0.15%

0.15%

0.15%

0.15%

0.15%

0.15%

0.15%

0.15%

0.14%

0.14%

0.14%

0.14%

0.13%

0.13%

0.13%

0.13%

0.17%

0.17%

0.17%

0.17%

0.17%

0.17%

0.17%

0.16%

0.16%

0.16%

0.15%

0.11%

0.10%

0.10%

0.10%

0.10%

0.10%

0.10%

0.10%

0.10%

0.13%

0.13%

0.13%

0.12%

0.12%

0.12%

0.12%

0.11%

0.11%

0.11%

0.11%

0.11%

0.09%

0.09%

0.09%

0.09%

0.09%

0.08%

MSA

Kansas City MO-KS

Tampa FL

Detroit MI

Chicago IL

Houston TX

Orlando FL

Los Angeles CA

Phoenix AZ

Sacramento CA

Orange County CA

Indianapolis IN

San Diego CA

San Diego CA

Houston TX

Houston TX

Denver CO

Fort Worth TX

Denver CO

Columbus OH

Portland OR

Cincinnati OH

Fort Lauderdale FL

San Jose CA

San Diego CA

Orlando FL

Seattle WA

Fort Lauderdale FL

Los Angeles CA

Dallas TX

Miami FL

Atlanta GA

Riverside CA

Cincinnati OH

Baltimore MD

Washington DC

Tampa FL

St. Louis MO

Atlanta GA

Cincinnati OH

West Palm Beach FL

Philadelphia PA

West Palm Beach FL

Denver CO

Chicago IL

Austin TX

Miami FL

Fort Worth TX

Chicago IL

Houston TX

Dallas TX

Atlanta GA

Washington DC

Fort Lauderdale FL

Fort Lauderdale FL

REIT


BRE Properties Inc.





















EastGroup Properties Inc.


Aegis Realty Inc.

Presidential Realty Corp.











MGI Properties


First REIT of New Jersey








BRE Properties Inc.






MSA

Baltimore MD

Denver CO

Riverside CA

Washington DC

Baltimore MD,

Miami FL

Washington DC

Chicago IL

Phoenix AZ

Boston MA

Baltimore MD

Philadelphia PA

Phoenix AZ

Baltimore MD

Los Angeles CA

Miami FL

Houston TX

Miami FL

Philadelphia PA

Boston MA

Fort Lauderdale FL

Atlanta GA

Atlanta GA

Seattle WA

Kansas City MO-KS

Miami FL

Chicago IL

Dallas TX

Chicago IL

Dallas TX

Washington DC

Miami FL

Philadelphia PA

Washington DC

Austin TX

Detroit MI

Washington DC

San Diego CA

Philadelphia PA

Los Angeles CA

Los Angeles CA

Boston MA

Washington DC

Boston MA

Los Angeles CA

Miami FL

Los Angeles CA

Los Angeles CA

Los Angeles CA

New York NY

New York NY

New York NY

Mkt Share

0.05%

0.04%

0.04%

0.04%

0.04%

0.04%

0.03%

0.03%

0.02%

0.02%

0.02%

0.02%

0.02%

0.02%

0.06%

0.06%

0.06%

0.06%

0.06%

0.05%

0.05%

0.05%

0.05%

0.05%

0.05%

0.05%

0.05%

0.08%

0.08%

0.08%

0.08%

0.08%

0.08%

0.07%

0.07%

0.07%

0.07%

0.07%

0.07%

0.07%

0.07%

0.07%

0.07%

0.07%

0.07%

0.01%

0.01%

0.01%

0.01%

0.00%

0.00%

0.00%

APPENDIX 2

INDIVIDUAL REIT RETAIL MARKET CONCENTRATIONS

FOR THE RETAIL SECTOR AT THE STATE LEVEL

Mkt Share

14.99%

14.24%

14.11%

13.99%

12.68%

12.38%

12.18%

11.97%

11.71%

11.50%

11.31%

11.13%

10.96%

10.43%

10.16%

10.16%

9.79%

9.73%

9.70%

9.36%

8.83%

8.76%

8.70%

8.63%

8.50%

8.38%

8.36%

8.18%

8.13%

8.08%

7.91%

7.76%

7.54%

7.51%

7.24%

7.24%

7.09%

6.97%

6.82%

6.77%

6.76%

6.74%

6.66%

6.64%

6.47%

6.38%

6.23%

6.08%

5.96%

80.60%

80.60%

62.97%

46.05%

40.16%

37.57%

30.24%

25.85%

25.85%

25.17%

24.87%

21.57%

21.25%

20.89%

18.07%

17.47%

17.30%

17.01%

15.55%

State

UT

AZ

TN

IL

ME

NJ

MI

AR

CO

OH

NE

WV

TX

IA

WV

NE

TN

IL

MO

WV

AL

OK

IA

ND

KS

CT

CT

FL

AR

MS

CT

MO

NM

SD

SD

WY

MT

ID

IN

WY

IA

KY

AR

WI

OK

MO

GA

MD,

MI

NV

SC

CA

VA

WI

NM

MN

MD

NH

LA

MD

UT

OK

CO

WA

PA

OK

AL

AR

REIT

Macerich Co.


JP Realty Inc.

Macerich Co.

JP Realty Inc.



Macerich Co.


Macerich Co.











Rouse Co.









Rouse Co.


Rouse Co.

Macerich Co.




JP Realty Inc.













JP Realty Inc.


Rouse Co.




Macerich Co.

Macerich Co.

Rouse Co.











REIT

Rouse Co.


Kimco Realty Corp.




Pennsylvania REIT








Macerich Co.











Rouse Co.

Macerich Co.






Rouse Co.


Rouse Co.


JP Realty Inc.

Rouse Company


Rouse Co.


Mills Corp.



Rouse Co.

Pennsylvania REIT











Rouse Co.

Macerich Co.





Rouse Co.



Mills Corp.



State

IA

FL

OH

NY

MN

LA

AL

MN

VA

OR

OR

OR

TX

SC

AZ

NE

UT

MD

KY

NV

MD

MN

GA

CA

PA

SC

SC

KS

KY

IN

GA

Ii

NM

AZ

TN

WI

DE

CA

OR

MS

NC

MA

MS

IN

AL

MS

TN

FL

NV

MD,

NV

LA

NH

NM

AZ

TX

PA

ID

WA

IA

GA

MN

OH

NJ

MI

VA

IL

CO

Mkt Share

3.37%

3.32%

3.31%

3.26%

3.26%

3.24%

3.23%

3.19%

3.17%

3.13%

3.08%

3.08%

3.07%

2.93%

3.96%

3.91%

3.90%

3.85%

3.83%

3.82%

3.79%

3.78%

3.76%

3.69%

3.68%

3.58%

3.57%

3.39%

3.38%

2.88%

2.85%

2.85%

2.81%

5.83%

5.71%

5.60%

5.57%

5.51%

5.47%

5.47%

5.42%

5.38%

5.37%

5.33%

5.33%

5.24%

5.05%

5.04%

4.94%

4.94%

4.91%

4.90%

4.89%

4.88%

4.83%

4.83%

4.76%

4.55%

4.41%

4.37%

4.30%

4.24%

4.20%

4.17%

4.14%

4.13%

4.12%

3.99%

State

WI

MN

PA

TN

IL

MI

VA

CA

VA

CO

MD

GA

LA

WI

CO

WA

VA

AL

IL

AZ

CO

IN

MA

PA

KY

NJ

MI

MD

CT

IL

CA

MA

WA

MA

FL

AL

NY

MO

CT

AL

AZ

TN

AZ

MD

CT

CT

MD

OH

NC

VA

MN

OH

WA

SC

GA

NJ

SC

FL

CO

WA

OR

KY

CO

PA

MO

VA

CO

VA

Mkt Share

2.22%

2.19%

2.18%

2.16%

2.13%

2.13%

2.13%

2.12%

2.12%

2.12%

2.10%

2.06%

2.02%

2.01%

2.00%

2.00%

1.99%

1.97%

1.95%

2.76%

2.73%

2.71%

2.63%

2.60%

2.60%

2.60%

2.56%

2.55%

2.55%

2.50%

2.39%

2.38%

2.36%

2.34%

2.30%

2.28%

2.26%

1.65%

1.64%

1.64%

1.59%

1.56%

1.52%

1.50%

1.50%

1.47%

1.45%

1.45%

1.44%

1.43%

1.41%

1.40%

1.38%

1.37%

1.37%

1.91%

1.91%

1.89%

1.86%

1.85%

1.84%

1.82%

1.77%

1.77%

1.71%

1.70%

1.68%

1.65%

REIT

Pennsylvania REIT






Property Capital Trust

Rouse Co.









Prime Retail Inc.

Macerich Co.

Prime Retail Inc.



Kimco Realty Corp.


Price REIT Inc.



Meditrust Corp.


Price REIT Inc.

Saul Centers Inc.

Mills Corp.

Kimco Realty Corp.


Rouse Co.

Mills Corp.

Saul Centers Inc.


Horizon Group Inc.

Macerich Co.

Urstadt Biddle Properties Inc.

Mills Corp.


Pennsylvania REIT


Kimco Realty Corp.

Mills Corp.

Mark Centers Trust

Vomado Realty Trust





Rouse Co.

Rouse Co.

Saul Centers Inc.









JP Realty Inc.

Price REIT Inc.




Mkt Share

0.83%

0.81%

0.79%

0.79%

0.78%

0.77%

0.76%

0.76%

0.73%

0.73%

0.73%

0.73%

0.70%

0.67%

0.67%

0.66%

0.66%

0.66%

0.65%

0.65%

0.99%

0.96%

0.95%

0.94%

0.92%

0.90%

0.88%

0.88%

0.88%

0.87%

0.86%

0.85%

1.08%

1.07%

1.07%

1.07%

1.06%

1.06%

1.06%

1.03%

1.02%

1.01%

1.01%

1.00%

1.35%

1.35%

1.32%

1.30%

1.29%

1.29%

1.27%

1.27%

1.27%

1.25%

1.22%

1.17%

1.16%

1.13%

1.11%

0.65%

0.64%

0.63%

0.62%

0.62%

0.62%

0.62%

0.60%

0.59%

State

CO

GA

CO

OH

CA

PA

PA

AZ

GA

NC

CA

FL

IN

WA

NY

MO

IN

TX

TX

IL

TX

IL

NC

MD

TX

NY

TN

NC

GA

MD

TX

NJ

NC

FL

PA

NC

VA

TX

VA

NC

MD

NJ

GA

NY

FL

IL

TX

PA

PA

OH

NY

VA

MI

NY

MI

FL

IL

CA

WA

NC

NJ

GA

MO

PA

CA

GA

NJ

PA

REIT


Rouse Company



Macerich Co.

Macerich Co.


Mid-Atlantic Realty Trust

Mills Corp.

Rouse Co.


Horizon Group Inc.










Macerich Co.

Prime Retail Inc.











EQK Realty Investors I


Mills Corp.

Price REIT Inc.


Mark Centers Trust






Kimco Realty Corp.


Price REIT Inc.



First Washington Realty Trust

Kimco Realty Corp.

Saul Centers Inc.


Rouse Company






Prime Retail Inc.

Macerich Co.



Prime Retail Inc.

Rouse Company



Chelsea GCA Realty Inc.

REIT State Mkt Share


Pennsylvania REIT


Prime Retail Inc.

Prime Retail Inc.

Macerich Co.




Kimco Realty Corp.

Meditrust Corp.


Kimco Realty Corp.

Alexander's Inc.





MGI Properties




Kimco Realty Corp.

Price REIT Inc.

PA

IL

FL

FL

IL

NY

CA

Atlantic Realty Trust

Pennsylvania REIT

NY

FL

Prime Retail Inc. OH

General Growth Properties Inc. NY

Kimco Realty Corp.


Horizon Group Inc.




Horizon Group Inc.

Horizon Group Inc.


Prime Retail Inc.


Horizon Group Inc.

Mark Centers Trust


Horizon Group Inc.


United Investors Realty Trust

Kimco Realty Corp.

Rouse Co.

OH

TX

OH

OH

NY

TX

NY

CA

CA

FL

FL





JP Realty Inc.



CA

CA

CA

CA

CA

CA

CA

CA

FL

PA

TX

TX

TX

FL

FL

TX

CA

FL

IL

NY

NY

OH

OH

VA

NJ

IL

NY

PA

FL

VA

OH

PA

0.34%

0.34%

0.34%

0.33%

0.33%

0.33%

0.33%

0.32%

0.32%

0.32%

0.31%

0.31%

0.30%

0.30%

0.30%

0.30%

0.28%

0.25%

0.23%

0.20%

0.19%

0.19%

0.19%

0.16%

0.15%

0.48%

0.48%

0.46%

0.46%

0.44%

0.41%

0.41%

0.39%

0.58%

0.57%

0.56%

0.55%

0.54%

0.53%

0.52%

0.51%

0.50%

0.39%

0.39%

0.38%

0.38%

0.38%.

0.38%

0.37%

0.36%

0.36%

0.36%

0.35%

0.35%

APPENDIX 3

INDIVIDUAL REIT MARKET PENETRATION

FOR THE RETAIL SECTOR AT THE COUNTY LEVEL

REIT State

Alexander Haagen Properties CA




Alexander's Inc.


NY

NY



AL

NY







IL

IN

IN

IN

MN

TN

Burnham Pacific Properties CA



CBL & Associates Properties AL

CBL & Associates Properties AL

CBL & Associates Properties CO

CBL & Associates Properties FL

CBL & Associates Properties GA

CBL & Associates Properties GA

CBL & Associates Properties MN

CBL & Associates Properties MS



CBL & Associates Properties NC

CBL & Associates Properties NC

CBL & Associates Properties NY

CBL & Associates Properties SC

CBL & Associates Properties TN






CBL & Associates Properties TX

CBL & Associates Properties WY

Chelsea GCA Realty Inc. CA





NY

AL

AL

AL



AL

AL











SC

CA

FL



GA

SC

Crown American Realty Trust GA

Crown American Realty Trust MD

Crown American Realty Trust NJ

FL

GA

GA

GA

GA

GA

NC

Crown American Realty Trust PA







County

Los Angeles

San Bernardino

San Diego

Orange

Clarke

Dakota

Warren

Lauderdale

Forrest

Buncombe

Guilford

Westchester

Spartanburg

Hamblen

Montgomery

Williamson

Blount

Hamilton

Davidson

Brazos

Laramie

Riverside

Orange

Etowah

Morgan

Lee

Montgomery

Jefferson

Orange

Kings

Richmond

Jefferson

Rockland

Cook

Vanderburgh

Lake

Marion

Ramsey

Williamson

Alameda

Los Angeles

Orange

Madison

Mobile

Boulder

Highlands

Whitfield

Glynn

Lowndes

Bibb

Clarke

Hall

Alamance

Horry

Los Angeles

Orange

Fulton

Greenville

Floyd

Washington

Warren

Blair

Franklin

Lycoming

Fayette

Lackawanna

Centre

Luzerne

Mkt Share

5.77%

2.62%

1.21%

32.17%

24.69%

16.26%

67.96%

100.00%

50.79%

38.38%

87.43%

61.60%

60.55%

55.61%

15.19%

15.45%

52.89%

88.04%

62.54%

45.50%

42.46%

3.81%

3.78%

2.06%

1.19%

17.25%

18.31%

6.28%

8.75%

3.32%

13.00%

10.02%

5.46%

10.76%

13.47%

36.11%

5.95%

99.84%

81.66%

3.32%

17.20%

100.00%

100.00%

56.56%

25.35%

9.20%

4.14%

100.00%

99.91%

75.04%

25.09%

20.39%

60.96%

19.05%

0.67%

5.12%

5.70%

41.32%

99.92%

39.31%

62.26%

100.00%

100.00%

72.06%

67.27%

46.82%

44.56%

40.45%

REIT State County



























































General Growth Properties










OH Franklin

OR Multnomah

PA Erie

TX Tarrant

PA Dauphin

AZ Maricopa

CO Adams

FL Pinellas

TX Tarrant

CA Solano,

CA Santa Clara

CA San Diego

GA De Kalb

IL Du Page

MD Montgomery

NJ Union

PA Delaware

PA Philadelphia

VA Henrico

VA Arlington

IA Webster

MN Steams

MN Kandiyohi

NY Cayuga

OR Multnomah

PA Luzerne

PA Berks

TX Taylor

WA Yakima

WV Marion

WV Monongalia

AL Jefferson

AR Jefferson

AZ Pima

PA Mercer

PA Cumberland

PA Washington

PA York

PA Lehigh

TN Anderson

TN Bradley

VA Montgomery

WV Berkeley

WV Marion

AL Jefferson

AR Washington

AZ Maricopa

CO Denver

GA Cobb

ID Bonneville

IL Cook

IN Lake

ME Cumberland

MI Wayne

MN Ramsey

MN Hennepin

MO Jackson

MS Lee

NC New Hanover

NC Durham

NJ Mercer

AZ Maricopa

CA Humboldt

CA Tulare

CA San Diego

CA San Joaquin

CA Alameda

CA Los Angeles

Mkt Share

38.69%

32.54%

21.56%

33.05%

6.26%

12.23%

15.32%

2.51%

35.08%

2.58%

8.87%

11.65%

2.86%

16.20%

2.62%

1.87%

7.02%

2.43%

7.45%

8.10%

7.23%

3.49%

13.36%

10.00%

100.00%

99.28%

98.92%

100.00%

8.89%

39.77%

19.46%

35.80%

22.35%

98.74%

56.26%

9.62%

59.52%

19.25%

8.53%

84.55%

78.62%

24.36%

19.17%

9.67%

36.98%

35.46%

31.89%

27.68%

12.20%

100.00%

99.99%

100.00%

100.00%

99.58%

5.81%

39.05%

1.67%

7.00%

6.87%

58.28%

1.50%

14.09%

25.38%

4.26%

7.83%

2.85%

4.48%

8.63%

REIT





































































Mkt Share

11.59%

100.00%

70.76%

62.86%

43.87%

30.07%

100.00%

83.66%

16.74%

86.42%

48.56%

29.97%

16.88%

36.41%

19.60%

99.81%

29.28%

8.51%

8.01%

7.11%

4.59%

45.86%

6.99%

67.96%

57.32%

42.14%

57.57%

43.42%

15.46%

17.24%

10.86%

48.18%

100.00%

100.00%

100.00%

100.00%

23.85%

29.83%

28.10%

59.09%

6.56%

100.00%

45.14%

7.95%

30.98%

26.99%

8.26%

39.33%

35.62%

75.47%

45.20%

10.55%

7.19%

67.15%

15.12%

57.59%

45.44%

45.05%

40.54%

100.00%

14.01%

22.04%

14.53%

100.00%

62.82%

44.63%

28.90%

99.57%

State County

Hennepin

Cole

Boone

Cape Girardeau

Catawba

Douglas

Merrimack

Mc Kinley

Niagara

Muskingum

Cleveland

Washington

Oklahoma

Lane

Bucks

Montgomery

Denton

Tarrant

Bexar

Dallas

Harris

Weber

Fairfax

Grays Harbor

Clark

Whatcom

Outagamie

Eau Claire

Hillsborough

Richmond

Johnson

Boyd

Fairfield

Tuscarawas

Greene

Licking

Montgomery

Dauphin

Lycoming

Washington

King

Wood

Monongalia

Riverside

El Paso

Denver

Jefferson

Hartford

New Haven

Polk

Alachua

Orange

Broward

Clayton

Fulton

Hawaii

Pottawattamie

Champaign

Clark

Warren

Middlesex

Anne Arundel

Montgomery

Calhoun

Bay

Grand Traverse

Jackson

Blue Earth

MN

MO

MO

MO

NC

NE

NH

NM

NY

OH

OK

OK

OK

OR

GA

KS

KY

OH

OH

OH

OH

OH

PA

TX

TX

TX

TX

TX

TX

UT

VA

WA

WA

WA

WI

WI

FL

PA

PA

TN

WA

WV

WV

KY

MA

MD

MD

MI

MI

MI

MI

MN

FL

FL

FL

FL

GA

GA

HI

IA

IL

IN

CA

CO

CO

CO

CT

CT

REIT

Horizon Group Inc.

Horizon Group Inc.

Horizon Group Inc.

Horizon Group Inc.

Horizon Group Inc.

Horizon Group Inc.

Horizon Group Inc.

Horizon Group Inc.









JP Realty Inc.

JP Realty Inc.

JP Realty Inc.

JP Realty Inc.

JP Realty Inc.

JP Realty Inc.

JP Realty Inc.

JP Realty Inc.

JP Realty Inc.

JP Realty Inc.

JP Realty Inc.

JP Realty Inc.

JP Realty Inc.

Kimco Realty Corp.

Kimco Realty Corp.

Kimco Realty Corp.

Kimco Realty Corp.

Kimco Realty Corp.

Kimco Realty Corp.

Kimco Realty Corp.

Kimco Realty Corp.

Kimco Realty Corp.

Kimco Realty Corp.



Macerich Co.

Macerich Co.

Macerich Co.

Macerich Co.

Macerich Co.

Macerich Co.

Macerich Co.

Macerich Co.

Macerich Co.

Macerich Co.

Macerich Co.

Macerich Co.

Macerich Co.

Macerich Co.

Macerich Co.

Macerich Co.

Macerich Co.

Macerich Co.

Macerich Co.

Macerich Co.

Macerich Co.

Macerich Co.

Macerich Co.

Macerich Co.

Macerich Co.

Macerich Co.

Macerich Co.

Mkt Share

28.26%

5.61%

100.00%

100.00%

84.19%

47.57%

38.65%

100.00%

27.87%

100.00%

38.29%

9.39%

40.56%

100.00%

100.00%

13.12%

6.55%

1.11%

21.76%

4.55%

11.24%

6.98%

3.77%

3.02%

3.23%

24.26%

7.99%

100.00%

48.62%

47.76%

34.97%

20.12%

16.86%

14.12%

6.60%

2.69%

88.39%

39.26%

33.50%

29.32%

98.21%

94.10%

78.70%

41.41%

33.01%

69.43%

42.82%

3.06%

2.83%

32.26%

23.70%

36.05%

22.73%

48.04%

99.99%

43.41%

87.40%

60.59%

55.69%

7.17%

12.98%

42.38%

64.28%

98.43%

40.86%

100.00%

16.17%

46.59%

State County

CA Santa Clara

CA Riverside

FL Indian River

IN La Porte

MI Saginaw

MI Muskegon

OH Fayette

TX Hill

AL Lee

GA Rockdale

GA Coweta

GA Bartow

GA Gwinnett

MS Hinds

NC Pitt

WI Milwaukee

CA Tulare

ID Bonneville

ID Bannock

ID Kootenai

ID Ada

NM San Juan

OR Marion

UT Washington

UT Cache

UT Salt Lake

WA Cowlitz

WY Natrona

WY Sweetwater

CO Denver

FL Seminole

IL Cook

MA Worcester

NC Wake

NH Rockingham

NJ Middlesex

NY Suffolk

OH Hamilton

TX Dallas

PA Northampton

VA Prince William

CA Santa Cruz

CA Butte

CA Stanislaus

CA Marin

CA Fresno

CA Contra Costa

CA Ventura

CA Los Angeles

CA Orange

CO Mesa

CO Weld

CO El Paso

CO Boulder

FL Lake

IA Woodbury

IA Scott

IA Linn

IA Polk

IL Rock Island

IN Clark

IN Vanderburgh

MD Wicomico

MT Cascade

MT Yellowstone

ND Cass

NV Washoe

NY Queens

REIT State

Macerich Co.

Macerich Co.

Macerich Co.

OK

PA

SD

SD Macerich Co.

Macerich Co.

Macerich Co.

Macerich Co.

Mark Centers Trust

Mark Centers Trust

Mark Centers Trust

Meditrust Corp.

Meditrust Corp.

MGI Properties

Mid-America Realty

Investments


TX

UT

VA

AL

NJ

PA

CA

MD

IL

NE

Mills Corp.

Mills Corp.

Mills Corp.

MD

AZ

Mills Corp.

Mills Corp.

Mills Corp.

Mills Corp.

Mills Corp.

Mills Corp.

TX

VA

National Income Realty Trust MS

New Plan Realty Trust CA

CA

CA

FL

IL

OH

PA



FL

MI



MO

MO

New Plan Realty Trust OH

Pan Pacific Retail Properties CA

Pan Pacific Retail Properties NV

Pan Pacific Retail Properties WA

Pan Pacific Retail Properties WA

Pennsylvania REIT DE

Pennsylvania REIT

Pennsylvania REIT

Pennsylvania REIT

Pennsylvania REIT

Pennsylvania REIT

Pennsylvania REIT

FL

MA

PA

PA

PA

PA

PA

PA

Pennsylvania REIT

Pennsylvania REIT

Pennsylvania REIT

Pennsylvania REIT

Price REIT Inc.

Price REIT Inc.

Price REIT Inc.

PA

SC

AZ

CA

CA

Price REIT Inc.

Price REIT Inc.

CT

TX

VA Price REIT Inc.

Price REIT Inc.

Prime Retail Inc.

Prime Retail Inc.

Prime Retail Inc.

Prime Retail Inc.

Prime Retail Inc.

Prime Retail Inc.

Prime Retail Inc.

Prime Retail Inc.

Prime Retail Inc.

Prime Retail Inc.

WA

AZ

CO

CO

FL

GA

NY

OH

PA

TX

TX

Property Capital Trust CO

Ramco-Gershenson Properties MI

Ramco-Gershenson Properties MI

Ramco-Gershenson Properties OH

County

Oklahoma

Delaware

Pennington

Minnehaha

Dallas

Salt Lake

Chesterfield

Houston

Morris

Luzerne

Los Angeles

Baltimore

Du Page

Adams

Lancaster

Bucks

Montgomery

Florence

Maricopa

Riverside

San Diego

New Haven

Harris

Prince William

Whatcom

Maricopa

Douglas

Larimer

Manatee

Mc Intosh

Niagara

Fayette

Mercer

Cooke

Hays

Boulder

Jackson

Oakland

Lucas

Harford

Maricopa

San Bernardino

Los Angeles

Broward

Lake

Hamilton

Philadelphia

Dallas

Prince William

Madison

San Bernardino

Duval

Oakland

Camden

Taney

Montgomery

San Bernardino

Clark

Whatcom

Pierce

New Castle

Pinellas

Bristol

Lehigh

Dauphin

Luzerne

Northampton

Mkt Share

18.47%

22.30%

100.00%

83.82%

8.67%

12.44%

34.81%

39.55%

15.72%

13.38%

2.08%

10.42%

2.48%

99.93%

43.74%

4.63%

7.23%

1.51%

12.70%

26.70%

4.22%

22.75%

8.54%

39.56%

35.63%

2.01%

5.84%

3.52%

96.84%

51.30%

17.54%

1.26%

35.58%

24.40%

25.97%

100.00%

25.85%

51.81%

37.96%

100.00%

86.82%

29.58%

39.39%

7.66%

9.60%

24.50%

21.89%

18.61%

14.34%

7.47%

100.00%

2.60%

3.74%

1.65%

6.48%

3.43%

11.65%

5.58%

3.17%

6.02%

20.10%

9.48%

4.64%

6.57%

11.06%

52.63%

26.06%

State

PA

TX

TX

TX

TX

WI

OR

PA

TX

MN

NJ

NJ

NJ

NV

NY

OH

OH

OH

PA

GA

IA

IA

IA

IA

IA

IL

KY

LA

MA

MD

MD

MI

CA

FL

FL

FL

WI

FL

OH

AR

FL

FL

FL

FL

FL

FL

FL

AZ

CA

CA

CO

CT

FL

FL

FL

FL

KY

MD

MD

NC

VA

AR

FL

FL

FL

FL

FL

FL

County

Milwaukee

Hillsborough

Hamilton

Washington

Los Angeles

Leon

Seminole

Hillsborough

Richmond

Des Moines

Story

Muscatine

Marshall

Martin

Citrus

Marion

Lake

Indian River

Pasco

Charlotte

Escambia

Manatee

Polk

Duval

Brevard

Seminole

Palm Beach

Dade

Orange

Pinellas

Black Hawk

Cook

Jefferson

Jefferson

Hampden

Howard

Baltimore

Wayne

Hennepin

Camden

Middlesex

Bergen

Clark

Richmond

Lucas

Montgomery

Cuyahoga

Chester

Montgomery

Collin

Travis

Bexar

Tarrant

Washington

Marion

Westmoreland

Harris

Fayette

Anne Arundel

Montgomery

Forsyth

Fairfax

Pulaski

Maricopa

San Bernardino

Orange

Mesa

Hartford

REIT




Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Co.

Rouse Company

Rouse Company

Rouse Company

Saul Centers Inc.

Saul Centers Inc.

Saul Centers Inc.

Saul Centers Inc.

Saul Centers Inc.
























Mkt Share

15.54%

7.70%

40.14%

24.95%

13.59%

6.60%

100.00%

27.81%

27.41%

6.13%

11.32%

10.42%

5.55%

11.94%

6.59%

8.55%

8.76%

67.49%

24.65%

9.52%

7.26%

64.22%

22.26%

14.72%

6.09%

4.82%

4.07%

3.52%

63.20%

1.07%

40.55%

32.99%

10.50%

31.68%

100.00%

100.00%

100.00%

53.13%

36.13%

3.97%

20.01%

22.38%

19.29%

33.02%

4.72%

52.48%

4.74%

8.04%

2.70%

88.39%

8.58%

99.97%

99.91%

99.87%

98.21%

74.53%

70.86%

70.05%

67.16%

52.43%

44.76%

34.41%

33.18%

33.06%

32.28%

20.76%

20.05%

18.58%

State County

Bergen

Middlesex

Bernalillo

Chautauqua

Suffolk

Westchester

Erie

Nassau

Clark

Wood

Allen

Mahoning

Lake

Cuyahoga

Lucas

Summit

Tulsa

Oklahoma

Delaware

Allegheny

Philadelphia

Anderson

Charleston

Pennington

Minnehaha

Knox

Shelby

Gregg

Midland

Broward

Woodbury

Scott

Linn

Polk

Sangamon

Madison

Rock Island

Peoria

Kankakee

Winnebago

Cook

Will

Kane

Du Page

Johnson

Wayne

Delaware

Monroe

Marion

Madison

Tippecanoe

Hamilton

Vanderburgh

Howard

Allen

Lake

Reno

Shawnee

Sedgwick

Calcasieu

Caddo

Charles

Anne Arundel

Baltimore

Greene

Jackson

Buncombe

Douglas

OH

OH

OH

OH

OK

OK

NY

OH

OH

OH

OH

PA

PA

PA

SC

SC

SD

SD

TN

TN

NJ

NJ

NM

NY

NY

NY

NY

TX

TX

IN

IN

IN

IN

KS

KS

KS

LA

LA

MD

MD

MD

MO

MO

NC

NE

IL

IL

IL

IN

IN

IN

IL

IL

IL

IL

IN

IN

IN

IN

IN

IA

IL

IL

IL

FL

IA

IA

IA

REIT





































































Mkt Share

13.60%

11.85%

10.32%

6.44%

69.15%

66.49%

57.33%

47.97%

40.48%

15.89%

15.45%

12.14%

13.18%

10.53%

22.30%

21.14%

7.19%

97.86%

10.35%

100.00%

83.82%

83.73%

8.21%

100.00%

100.00%

56.82%

55.22%

43.64%

42.38%

32.23%

24.36%

11.69%

99.10%

68.54%

67.39%

52.88%

42.89%

72.98%

10.08%

7.65%

63.73%

12.65%

33.53%

21.84%

12.78%

11.76%

24.71%

92.14%

6.35%

94.10%

78.70%

41.41%

33.01%

100.00%

100.00%

69.43%

35.78%

33.21%

14.35%

11.30%

11.11%

8.43%

4.75%

100.00%

100.00%

80.76%

60.15%

57.16%

REIT State County

Cameron

Smith

Travis

Hidalgo

Galveston

El Paso

Bexar

Dallas

Washoe

Franklin

Davidson

Henrico,

Fairfax

Broward

San Francisco

Orange

Los Angeles

Hillsborough

Broward

Dade

Du Page

Lake

Cook

Oklahoma

Shelby

New Haven

Nassau

Lehigh

Bernalillo

Nueces

Fort Bend

San Diego

Los Angeles

Tarrant

Chesapeake City

Henrico

Benton

Pierce

King

Fond Du Lac

Sheboygan

Brown

Tangipahoa

Terrebonne

Maricopa

Santa Barbara

Contra Costa

Alameda

Los Angeles

Denver

Fairfield

Hartford

Dade

Cook

Anne Arundel

Montgomery

Washtenaw

Kent

Macomb

Wayne

Oakland

Essex

Jefferson

New Haven

Fairfield

Hartford

Montgomery

Anne Arundel

NV

OH

TN

VA

VA

FL

CA

MD,

MI

MI

MI

MI

MI

NJ

LA

AZ

CA

CA

CA

CA

CO

CT

CT

FL

IL

MD

IL

OK

TN

CT

NY

PA

CA

CA

FL

FL

FL

IL

IL

NM

TX

TX

CA

CA

TX

TX

VA

VA

WA

WA

WA

WI

WI

WI

LA

TX

TX

TX

TX

TX

TX

TX

CO

CT

CT

CT

MD

MD
























































Vomado Realty Trust













Mkt Share

2.00%

30.27%

16.11%

11.29%

1.70%

18.35%

38.27%

25.30%

4.43%

6.89%

24.07%

12.82%

58.47%

21.51%

20.46%

14.39%

9.37%

100.00%

31.61%

13.99%

12.51%

25.27%

23.81%

2.13%

19.96%

3.69%

1.27%

11.66%

6.37%

5.23%

27.07%

22.34%

7.32%

17.85%

9.82%

5.85%

14.71%

62.61%

59.05%

58.17%

55.35%

52.42%

51.20%

31.53%

19.38%

8.16%

35.15%

24.21%

68.79%

40.45%

7.52%

100.00%

100.00%

41.70%

80.45%

58.54%

19.68%

7.80%

18.81%

12.13%

20.78%

6.81%

8.17%

30.80%

25.39%

17.31%

27.21%

21.92%

REIT



State County Mkt Share

MO Cape Girardeau 62.72%

NY Suffolk 11.25%

REIT


State

WA Clark

County Mkt Share

57.66%

APPENDIX 4


FOR THE OFFICE SECTOR AT THE MSA LEVEL

REIT





Rouse Company









Koger Equity Inc.


Arden Realty Inc.









Rouse Company





Arden Realty Inc.


JP Realty Inc.

Arden Realty Inc.






Arden Realty Inc.

Kilroy Realty Corp.








Tower Realty Trust Inc.

Arden Realty Inc.




Koger Equity Inc.










Kilroy Realty Corp.

Koger Equity Inc.





MSA Mkt Share

Long Island

Orlando

Cincinatti

San Jose

Las Vegas

Jacksonville

Tampa

Dallas

N. New Jersey

San Jose

Nashville

Philadelphia

Jacksonville

Jacksonville

Austin

Ventura

Wilmington

Columbus

Boston

Austin

8.51%

8.48%

8.05%

7.90%

7.73%

7.43%

6.67%

6.45% Atlanta

Indianapolis

Atlanta

Houston

Baltimore

Orange County

Philadelphia

6.22%

5.82%

5.81%

5.75%

5.71%

5.68%

5.59% Stamford

St. Louis

Los Angeles

San Jose

Salt Lake City

Orange County

Austin

San Jose

5.58%

5.55%

5.36%

5.35%

5.24%

5.21%

5.16%

5.11% Seattle

Charlotte

Chicago

Bakersfield

Ventura

Portland, OR

Charlotte

Indianapolis

5.03%

5.03%

4.88%

4.66%

4.64%

Sacramento

Albuquerque

Ft. Lauderdale

San Francisco

Tucson

San Diego

Columbus

Forth Worth

Orlando

Orlando

Cleveland

Oakland

4.11%

4.07%

3.80%

3.67%

3.58%

Cleveland 3.53%

West Palm Beach 3.52%

Orlando

Columbus

3.36%

3.35%

4.54%

4.45%

4.36%

4.29%

4.25%

4.17%

4.16%

4.14%

4.12%

14.63%

12.81%

12.78%

11.91%

11.03%

10.81%

10.68%

10.02%

9.97%

9.78%

8.91%

8.87%

8.51%

Austin

Seattle

Oakland

San Diego

Charlotte

Philadelphia

Ventura

Charlotte

Denver

3.32%

3.28%

3.07%

3.05%

2.93%

2.89%

2.84%

2.75%

2.74%

REIT




Arden Realty Inc.














Health & Retirement Properties











Koger Equity Inc.




Rouse Company


Koger Equity Inc.






Lexington Corporate Properties

Kilroy Realty Corp.


















Parkway Properties Inc.





Koger Equity Inc.


Washington REIT


MSA Mkt Share

Los Angeles

Stamford

Albuquerque

Riverside

Charlotte

Las Vegas

Salt Lake City

Atlanta

Dallas

Orange County

Ft. Lauderdale

Orlando

Los Angeles

Portland, OR

Nashville

1.53%

1.47%

1.46%

1.44%

1.42%

1.41%

1.41%

Dallas 1.40%


Miami 1.38%

New York

Phoeniz

Seattle

N. New Jersey

Phoeniz

Houston

N. New Jersey

Austin

1.37%

1.37%

1.36%

1.32%

1.32%

1.30%

1.27%

Phoeniz

Ft. Lauderdale

Atlanta

St. Louis

Washington

Cleveland

1.26%

1.26%

1.24%

1.23%

1.18%

1.18%

1.17%

1.78%

1.75%

1.74%

1.74%

1.72%

1.70%

1.68%

1.65%

1.64%

1.64%

1.63%

1.61%

1.60%

2.15%

2.12%

2.11%

2.11%

2.08%

2.08%

1.99%

1.98%

1.97%

1.96%

1.94%

1.90%

1.89%

1.81%

Orange County

Washington

Nashville

Miami

Phoeniz

Houston

Dallas

Minneapolis

Washington

Austin

Seattle

New York

Washington

San Diego

San Diego

Philadelphia

Detroit

Boston

Riverside

Atlanta

Tampa

Oklahoma City

Denver

Denver

Phoeniz

Chicago

Austin

Tampa

Atlanta

Baltimore

Jacksonville

Sacramento

Salt Lake City

Orange County

Boston

Baltimore

2.40%

2.37%

2.33%

2.31%

2.21%

2.21%

2.16%

2.15%

2.71%

2.70%

2.70%

2.61%

2.61%

2.58%

2.57%

2.50%

2.48%

REIT


Corporate Office Properties





Kilroy Realty Corp.

















Kilroy Realty Corp.





Bedford Property Investors


Kilroy Realty Corp.










Weeks Corp.
















Cedar Income Fund Ltd.


Public Storage Inc.




MGI Properties






MSA Mkt Share

1.17%

1.17%

1.16%

1.15%

1.14%

1.13%

0.84%

0.82%

0.82%

0.81%

0.80%

0.80%

0.79%

0.79%

0.77%

0.73%

0.71%

0.71%

0.71%

0.70%

0.69%

0.96%

0.95%

0.93%

0.93%

0.93%

0.93%

0.92%

0.91%

0.89%

0.88%

0.87%

0.85%

0.84%

0.84%

0.69%

0.68%

0.66%

0.65%

0.65%

0.64%

0.63%

1.03%

1.03%

1.02%

1.01%

1.01%

1.01%

1.00%

1.00%

0.98%

0.98%

0.97%

1.12%

1.11%

1.11%

1.10%

1.09%

1.05%

1.04%

1.04%

0.62%

0.60%

0.59%

0.59%

0.59%

0.57%

0.57%

San Francisco

Boston

Tampa

Phoeniz

Atlanta

San Francisco

Tampa

Dallas

Denver

Salt Lake City

Atlanta

San Diego

Washington

Salt Lake City

Hartford

Hartford

Ventura

Cincinatti

New York

Minneapolis

Atlanta

Tampa

Philadelphia

Ft. Lauderdale

West Palm Beach

Minneapolis

San Diego

Los Angeles

Philadelphia

Ft. Lauderdale

Phoeniz

Tampa

Baltimore

New York

Dallas

Forth Worth

Kansas City

Phoeniz

St. Louis

Philadelphia

Denver

St. Louis

Long Island

Denver

Seattle

Long Island

Salt Lake City

Orange County

Ventura

Phoeniz

Detroit

San Jose

Denver

Sacramento

New York

Tucson

Seattle

West Palm Beach

Dallas

Charlotte

Chicago

Atlanta

Chicago

Detroit

New York

Riverside

Atlanta

Seattle

REIT

Weeks Corp.
















Security Capital Industrial


Ocwen Asset Investment Corp.



MGI Properties




Corporate Property Assoc 10




















Franklin Select Realty Trust






















Patriot American Hospitality

Mkt Share

0.36%

0.36%

0.36%

0.36%

0.35%

0.35%

0.35%

0.35%

0.34%

0.34%

0.32%

0.45%

0.45%

0.44%

0.43%

0.42%

0.41%

0.40%

0.40%

0.39%

0.39%

0.39%

0.38%

0.37%

0.37%

0.37%

0.37%

0.37%

0.37%

0.32%

0.32%

0.31%

0.31%

0.31%

0.57%

0.57%

0.57%

0.56%

0.55%

0.54%

0.54%

0.53%

0.52%

0.52%

0.51%

0.49%

0.49%

0.48%

0.47%

0.47%

0.47%

0.46%

0.46%

0.45%

0.45%

0.31%

0.31%

0.31%

0.30%

0.30%

0.30%

0.29%

0.29%

0.29%

0.29%

0.28%

0.28%

0.26%

MSA

Orlando

Jacksonville

Houston

New York

Austin

San Diego

Baltimore

Chicago

N. New Jersey

Chicago

Orange County

San Diego

Tampa

Washington

Oakland

Dallas

Dallas

N. New Jersey

San Francisco

Philadelphia

San Diego

Tampa

Washington

Minneapolis

Indianapolis

San Diego

Stamford

Indianapolis

San Francisco

Salt Lake City

Austin

San Francisco

Orange County

San Diego

San Diego

Orlando

Long Island

Chicago

Philadelphia

San Diego

Atlanta

Cincinatti

San Jose

Detroit

N. New Jersey

Oakland

Orange County

Chicago

Los Angeles

Boston

Forth Worth

Baltimore

San Diego

Philadelphia

Cincinatti

Portland, OR

Sacramento

Sacramento

Baltimore

Atlanta

Detroit

Oakland

Orange County

Tampa

N. New Jersey

Tampa

Stamford

Boston

REIT





Saul Centers Inc.


Alexandria Real Estate

One Liberty Properties Inc.

MGI Properties






Meridian Industrial Trust


American Health Properties Inc


American General Hospitality

West Coast Realty Investors






Meridian Point Realty Trust 8

Weeks Corp.






Nooney Realty Trust Inc.





PS Business Parks Inc




MGI Properties








Investment Income Properties

CV REIT Inc.







MSA Mkt Share

Kansas City

Washington

Kansas City

San Jose

Washington

Los Angeles

Oakland

Long Island

Boston

Phoeniz

Dallas

Minneapolis

Dallas

Indianapolis

Phoeniz

St. Louis

Miami

Tampa

Houston

Orange County

San Francisco

San Francisco

San Diego

Phoeniz

Washington

Detroit

Miami

Houston

Washington

Chicago

Oakland

Denver

Minneapolis

Ft. Lauderdale

San Jose

Phoeniz

San Francisco

Kansas City

New York

Washington

Atlanta

N. New Jersey

Chicago

Tampa

Los Angeles

Denver

0.15%

0.15%

0.15%

0.15%

0.14%

0.14%

Oakland

Seattle

0.14%

0.13%

Chicago

Ft. Lauderdale



Atlanta

Oakland

Columbus

0.13%

0.13%

0.13%

0.13%

0.13%

New York

Cleveland

0.12%

0.12%

0.18%

0.18%

0.18%

0.17%

0.17%

0.17%

0.17%

0.17%

0.16%

0.16%

0.16%

0.23%

0.23%

0.22%

0.22%

0.22%

0.21%

0.21%

0.21%

0.21%

0.26%

0.26%

0.25%

0.25%

0.25%

0.24%

0.24%

0.24%

0.21%

0.21%

0.21%

0.20%

0.20%

0.20%

0.20%

0.19%

0.19%

0.19%

0.19%

0.18%

REIT
















Public Storage Inc.


MGI Properties

Public Storage Inc.




USA Real Estate Investment

Rouse Company

USP Real Estate Investment





Western Investment RE Trust

American Industrial Properties


ElderTrust


Carey Institutional Properties
















Sun Communities Inc.


ElderTrust


ElderTrust

MSA

Chicago

Washington

Houston

Washington

Orange County

Boston

N. New Jersey

Washington

Chicago

San Francisco

Dallas

San Diego

Philadelphia

Phoeniz

Los Angeles

Los Angeles

Seattle

Houston

N. New Jersey

Chicago

Atlanta

Washington

Dallas

Los Angeles

Washington

Washington

Washington

San Jose

Los Angeles

Minneapolis

Detroit

Los Angeles

Hartford

New York

N. New Jersey

Dallas

Washington

Los Angeles

Houston

Atlanta

Chicago

Baltimore

San Francisco

Los Angeles

Charlotte

Washington

Washington

Detroit

Stamford

Sacramento

Los Angeles

Atlanta

New York

San Francisco

Washington

Mkt Share

0.05%

0.05%

0.05%

0.05%

0.05%

0.05%

0.05%

0.05%

0.05%

0.04%

0.04%

0.07%

0.07%

0.06%

0.06%

0.06%

0.06%

0.06%

0.06%

0.06%

0.12%

0.11%

0.11%

0.11%

0.10%

0.10%

0.10%

0.10%

0.08%

0.08%

0.08%

0.08%

0.08%

0.08%

0.07%

0.07%

0.07%

0.07%

0.07%

0.07%

0.04%

0.03%

0.03%

0.03%

0.03%

0.03%

0.03%

0.03%

0.02%

0.02%

0.02%

0.01%

0.01%

0.01%

0.00%

APPENDIX 5

TOTAL REIT MARKET CONCENTRATIONS

FOR THE OFFICE SECTOR AT THE TWR MARKET LEVEL

MSA

Orange County

Philadelphia

Denver

Atlanta

N. New Jersey

Cincinatti

Las Vegas

N. New Jersey

Oakland

N. New Jersey

Dallas

Los Angeles

N. New Jersey

Ft. Lauderdale

N. New Jersey

Philadelphia

Houston

Salt Lake City

Nashville

San Jose

Orange County

San Francisco

Indianapolis

Atlanta

West Palm Beach

Los Angeles

Dallas

Orange County

Orlando

Westchester

Denver

Los Angeles

Indianapolis

Los Angeles

Chicago

Orange County


Orange County

Dallas

Salt Lake City

N. New Jersey

Tampa

Austin

San Diego

San Diego

Dallas

Philadelphia

Baltimore

Los Angeles

San Francisco

Los Angeles

Salt Lake City

Westchester

Jacksonville

Oakland

Indianapolis

Seattle

Philadelphia

Tampa

San Jose

Tampa

Orange County

Cincinatti

N. New Jersey

Dallas

San Jose

Seattle

San Jose

Submarket

Unclassified South Bay

West Cook

Unclassified Airport Area

Sterling

Anaheim Stadium Area

Richardson/Plano

Research Park

Shorthills/Millburn

I-75/US 301

CBD

East County

UTC

South Dallas

Horsham/Willow Grove

Reisterstown Rd. Corridor

Beach Cities

Brisbane

Westwood

Interchange

West 1-287 Corridor

Arlington

Hayward

Park 100

405 Corridor

Plymouth Mtg/Blue Bell

SE St. Petersburg

Mountain View

NW Tampa

Irvine Business Complex

Blue Ash

Rt. 46 Corridor

183 Corridor

South San Jose

Bellevue CBD

Sunnyvale

The City

Conshohocken

North

Southside/Airport

Route 22

CBD Periphery

Summerlin

Route 4 & 17 Corridor

Newark

Route 208 Corridor

Mid Stemmons

Monterey Park

Southern Monmouth

Hollywood

North Central Bergen

Burlington County

Richmond/Greenway

Sandy South Towne

Green Hills/Brentwwod

Downtown

Anaheim Hills

Foster City

Greenwood

Northeast

Palm Beach

Beverly Hills

Far North Dallas

Unclassified Central Orange Co

Winter Park

Ramapo

Northwest

Suburban Long Beach

Park Fletcher

Mkt Type

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Mkt Share

59.98%

57.79%

56.69%

56.10%

55.27%

53.84%

53.49%

52.45%

51.98%

50.64%

49.75%

49.56%

48.71%

48.23%

47.10%

45.74%

45.46%

44.90%

43.27%

42.88%

42.87%

42.79%

42.13%

41.76%

99.61%

96.33%

87.19%

84.07%

82.56%

82.19%

81.49%

81.22%

80.10%

74.83%

67.60%

66.46%

65.50%

63.55%

60.96%

60.11%

60.09%

36.73%

36.72%

35.88%

35.47%

35.42%

35.32%

34.53%

33.96%

33.95%

33.33%

32.83%

32.74%

40.69%

40.62%

40.53%

40.12%

40.10%

39.24%

38.50%

38.02%

37.30%

36.74%

31.75%

31.63%

31.36%

31.23%

31.00%

MSA

Los Angeles

Los Angeles

Phoeniz

Portland, OR


San Jose

Tampa

Dallas

Cincinatti

Oakland

Albuquerque

Los Angeles

Cincinatti

N. New Jersey

N. New Jersey

Stamford

Los Angeles

San Diego

Los Angeles

Nashville

New York


N. New Jersey

Boston

Long Island

New York

Seattle


San Jose

Los Angeles

San Francisco

Chicago


Philadelphia

Orange County

Denver

Seattle

Long Island

Jacksonville

Forth Worth

Westchester

N. New Jersey

Columbus


Dallas

Atlanta

Indianapolis

San Francisco

Chicago

Dallas

Cincinatti

Atlanta

Baltimore

Orange County

Charlotte

Orlando

Boston

Indianapolis

Atlanta

Westchester

Las Vegas

Cleveland

Austin

Philadelphia

Los Angeles


Oakland

Baltimore

Submarket

S. Colorado Blvd./Midtown

Renton

Melville

Butler Corridor

Irving/Airport

Southeast

North 17 Corridor

Suburban

Reston

Central

Central Perimeter

Keystone Crossing

S.F. Union Square

Lake County

N. Central Expressway

East

Downtown

Columbia

Unclassified N. Orange Co.

1-77 Corridor

South West Center

Northwest

Speedway

Northwest

Southwest

University Area

Pasadena

West Hollywood

Sun City/Glendale

Lake Oswego

West End/Georgetown

Santa Clara

SW St. Petersburg

CBD

1-71 Corridor

Fremont

Downtown

Marina Del Rey

Tri-County

Parsippany Area

Brunswicks

Stamford

Santa Monica

Carlsbad

Fox Hills/Culver City

Downtown

Columbus Circle

Annandale

Passaic Urban Region

Financial District

Garden City

Penn Station

CBD

The Pike

Milpitas

LAX

Palo Alto

West Loop

Southwest

Trevose/I-95

Unclassified S. Orange Co.

South

North/Northwest

Fort Washington

Pomona/Diamond Bar

North PG County

Pleasanton

Annapolis

Mkt Share

24.41%

23.66%

23.59%

22.77%

22.47%

22.43%

22.37%

22.33%

22.26%

22.24%

22.07%

21.92%

21.55%

21.53%

21.37%

21.20%

20.96%

20.79%

20.75%

20.48%

20.47%

20.19%

20.11%

20.06%

19.96%

19.96%

19.90%

19.72%

19.70%

19.44%

19.43%

19.38%

19.32%

18.74%

18.69%

18.43%

18.27%

18.25%

18.22%

17.75%

17.74%

17.73%

27.47%

27.22%

27.17%

26.58%

26.55%

26.45%

26.33%

26.22%

26.19%

26.02%

25.93%

25.22%

24.76%

30.60%

30.56%

30.26%

30.24%

30.17%

30.05%

29.89%

29.32%

29.27%

28.97%

28.73%

28.48%

28.29%

Mkt Type

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Downtown

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Downtown

Suburban

Suburban

Downtown

Suburban

Downtown

Downtown

Suburban

Suburban

Suburban

Suburban

Downtown

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

MSA Submarket

Ontario/Upland/Montclair

Northwest Phoenix


Morristown Region

Roseville/Rocklin

Government Center

Crystal City

Northwest County

Southeast

Ventura

East Loop

Burbank

Oak Brook

Fairfax/Center

South County

East 1-287 Corridor

Fort Worth CBD

West

Hauppauge

Rancho Bernardo

NE Tampa

North Loop/Northwest

Westshore/Airport

Northlake

Central Corridor

Metrowest

West Los Angeles

Bethesda

Conejo Valley

Howe Ave/Fulton Ave

New Castle Co.

Airport South

CBD

O'Hare

Lamorinda

Mid County

East SF Valley

East Central

190th St. Corridor

Route 78 East

Falls Church

Midtown

Federal Way

Paradise Valley

LBJ/Quorum

Back Bay/Boylston

Downtown St. Petersburg

West

1-275 Corridor

Midway

Uptown

Century City

Springfield

Downtown

Grand Central/UN

Princeton South

Camden County

Downtown

Princeton North

El Segundo

West SF Valley

Tyson's Corner

Temecula

Park/Lexington

East Cambridge

Palos Verdes

East Valley

Santa Clarita Valley

Riverside

Phoeniz

N. New Jersey

N. New Jersey

Sacramento

Boston


St. Louis

Denver

Ventura

Chicago

Los Angeles

Chicago


St. Louis

Westchester

Forth Worth

Houston

Long Island

San Diego

Tampa

Houston

Tampa

Atlanta

Phoeniz

Boston

Los Angeles


Ventura

Sacramento

Wilmington

Nashville


Chicago

Oakland

St. Louis

Los Angeles

Tucson

Los Angeles

N. New Jersey


Phoeniz

Seattle

Phoeniz

Dallas

Boston

Tampa

Boston

Detroit


Charlotte

Los Angeles


Jacksonville

New York

N. New Jersey

Philadelphia

Miami

N. New Jersey

Los Angeles

Los Angeles


San Diego

New York

Boston

Los Angeles

Phoeniz

Los Angeles

Mkt Type

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Downtown

Downtown

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Mkt Share

13.73%

13.62%

13.61%

13.48%

13.47%

13.30%

13.29%

13.17%

13.06%

12.69%

12.39%

12.37%

12.15%

12.04%

12.04%

11.94%

11.90%

11.80%

11.75%

11.34%

11.33%

11.28%

11.26%

14.99%

14.91%

14.90%

14.89%

14.87%

14.63%

14.63%

14.58%

14.51%

14.49%

14.39%

14.27%

14.24%

14.04%

11.23%

11.16%

11.13%

11.02%

10.97%

10.97%

10.94%

17.58%

17.38%

17.34%

17.20%

16.85%

16.66%

16.56%

16.23%

16.12%

16.01%

15.90%

15.85%

15.45%

15.31%

15.17%

15.03%

15.00%

10.93%

10.79%

10.79%

10.67%

10.59%

10.47%

10.25%

MSA

Indianapolis

San Diego

Dallas

Ventura

N. New Jersey

Westchester

Detroit

Nashville

Baltimore

Indianapolis

Indianapolis

Miami


N. New Jersey

Dallas

San Diego

Seattle

West Palm Beach

New York

Denver

Cleveland

Ft. Lauderdale

Detroit

Salt Lake City


San Francisco

Charlotte

N. New Jersey

San Diego

Riverside

Sacramento

Orange County

Oklahoma City

Oakland

Cleveland

Baltimore

Westchester

Cleveland

Portland, OR

St. Louis

West Palm Beach

Oakland

Ft. Lauderdale


Riverside

Philadelphia

Long Island

Phoeniz

Sacramento

Detroit

Houston

Philadelphia

Detroit

N. New Jersey

San Francisco

Dallas


Austin

Los Angeles

Orlando

Houston

Chicago

Bakersfield

Los Angeles

N. New Jersey

San Francisco

Chicago

Baltimore

Mkt Type

Downtown

Suburban

Suburban

Downtown

Suburban

Downtown

Downtown

Suburban

Suburban

Downtown

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Downtown

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Submarket

Downtown

Del Mar Heights

LBJ East

Oxnard/Port Hueneme

Hackensack

White Plains CBD

Ann Arbor

Airport North

Baltimore City

Midtown

Castleton

Kendall

Alexandria/Oldtown


Las Colinas

Downtown

Unclassified Tacoma Area

Boca Raton

East Midtown South

Cherry Creek

Downtown

Downtown

Southfield/Bingham Farms

Central Valley East

Minneapolis CBD

Financial District

Hwy 51-Crownpoint

GW Bridge

Scripps Ranch

Rancho Cucamonga

Watt Ave

Unclassified W. Orange Co.

North

Oakland

West

Baltimore CBD

Northwest

East

Downtown

Downtown

West Palm Beach

Concord

Plantation

Gaithersburg

Corona

Bala Cynwyd

Jericho

Camelback Corridor

Point West

Troy

North/North Belt

Center City

Farmington Hills/W. Bloomfield

Hudson Waterfront

Redwood City

Oaklawn/Turtle Creek

Shady Grove

Southwest

Downtown LA

Maitland Center

Galleria/West Loop

Schaumburg

Southwest

Glendale

Rt 3 & Garden State Parkway

San Mateo

River North

BWI Airport

Mkt Share

7.79%

7.68%

7.39%

7.14%

7.12%

7.09%

7.07%

7.02%

6.99%

6.82%

6.81%

6.78%

6.67%

6.57%

6.56%

6.53%

6.42%

6.41%

6.39%

6.33%

6.29%

6.28%

6.24%

6.15%

6.14%

6.11%

6.07%

6.02%

5.99%

5.80%

5.79%

5.50%

5.46%

5.44%

5.24%

5.18%

5.17%

8.90%

8.90%

8.82%

8.64%

8.52%

8.51%

8.50%

8.35%

8.33%

8.33%

8.29%

8.26%

8.10%

7.98%

7.92%

7.90%

7.81%

10.23%

10.05%

9.97%

9.85%

9.80%

9.75%

9.71%

9.66%

9.64%

9.61%

9.60%

9.59%

9.02%

9.01%

MSA Submarket

Forth Worth

Hartford

Tucson

Atlanta

San Diego

Boston

Ft. Lauderdale

Oakland


Austin

New York

Los Angeles

San Jose

Los Angeles

Atlanta

San Diego

Baltimore

Los Angeles

Bakersfield

Orange County

New York

Seattle

Boston

Indianapolis

Denver

Oakland

Ft. Lauderdale

Stamford

Miami

Chicago

Ft. Lauderdale

Houston


Miami

Ft. Lauderdale

N. New Jersey

Charlotte

Sacramento

Atlanta

Cleveland

Los Angeles

St. Louis

West Palm Beach

N. New Jersey

San Francisco

Denver

New York

Oklahoma City


New York

Kansas City


Kansas City

San Francisco

Baltimore

Houston

Phoeniz

Hartford

Long Island

Miami

Tampa


San Francisco

Miami

Chicago

Dallas


Hartford

Brookhollow Arlington

West Market

North Central

North Fulton

Sorrento Mesa

North

Southwest Broward

Alameda

Suburban St. Paul

South/Southeast

Third Avenue

210 Corridor

Cupertino

Downtown Long Beach

Buckhead

Kearny Mesa

Hunt Valley

Central SF Valley

Central

Irvine Spectrum

So. Ferry Financial District

1-90 Corridor

South

College Park

Aurora

Berkeley

Fort Lauderdale

Greenwich

Coral Gables

North Suburbs

Pompano Beach

NASA/Clear Lake

Rosslyn/Ballston

NE Dade

Cypress Creek

Edison/Woodbridge

Southpark

Hwy 50 Corridor

Midtown

Northeast

Torrance

West County

North Palm Beach

Route 287

Menlo Park

Downtown

Time Square/Theatre District

Northwest

1-494

Garment District

North Johnson County

Herndon/Dulles

South Johnson County

Western S.F.

Towson

Northwest

Scottsdale

South Market

Lake Success

Unclassified

Downtown

Inside Beltway

Outer So. Market

Airport

South Suburbs

Stemmons

East End

North Market

Mkt Type Mkt Share

3.92%

3.86%

3.85%

3.85%

3.79%

3.72%

3.72%

3.65%

3.61%

3.43%

3.41%

3.36%

3.25%

3.15%

3.05%

2.91%

2.89%

2.75%

2.73%

5.13%

5.10%

5.09%

5.05%

4.91%

4.90%

4.83%

4.82%

4.78%

4.72%

4.71%

4.69%

4.60%

4.56%

4.55%

4.47%

4.34%

4.22%

4.09%

4.09%

3.93%

2.05%

2.02%

1.93%

1.86%

1.66%

1.61%

1.45%

1.39%

1.38%

1.29%

1.19%

1.05%

1.00%

0.61%

0.49%

0.24%

0.09%

2.71%

2.68%

2.66%

2.61%

2.57%

2.55%

2.48%

2.46%

2.44%

2.40%

2.14%

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban'

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Downtown

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Downtown

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

MSA

Baltimore

Miami

Detroit

Kansas City

Las Vegas

Chicago

Riverside

Submarket

Glen Burnie

Coconut Grove

Birmingham/Bloomfield Hills

Downtown

Green Valley

Central Loop

Riverside

Mkt Type Mkt Share

Suburban

Suburban

Suburban

Downtown

Suburban

Downtown

Suburban

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

APPENDIX 6


FOR THE OFFICE SECTOR AT THE TWR MARKET LEVEL

MSA

Los Angeles

Los Angeles

Los Angeles

Los Angeles

Los Angeles

Los Angeles

Los Angeles

Los Angeles

Los Angeles

Los Angeles

Oakland

Orange County

Orange County

Orange County

Orange County

Orange County

Orange County

Riverside

Riverside

San Diego

San Diego

San Diego

San Diego

San Diego

Ventura

Ventura

Ventura

Atlanta

Atlanta

Chicago

Tampa


Austin

Denver

Detroit

Oakland




Miami

Forth Worth

N. New Jersey

N. New Jersey

N. New Jersey

Bakersfield

Bakersfield

Los Angeles

Los Angeles

Los Angeles

Los Angeles

Los Angeles

Los Angeles

Los Angeles

Los Angeles

Los Angeles

Los Angeles

Los Angeles

Los Angeles

Kansas City

Oakland

Orange County

Phoeniz

Phoeniz

Salt Lake City

San Diego

San Jose

Seattle

Seattle

Tucson

REIT

Agree Realty Corp.










Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.

Arden Realty Inc.



















SubMarket

Ann Arbor

Alameda

Shady Grove

Gaithersburg

The Pike

NE Dade

Irving/Airport


Passaic Urban Region


Southwest

Central

Unclassified South Bay

Monterey Park

West Hollywood

Fox Hills/Culver City

Beverly Hills

LAX

Suburban Long Beach

Burbank

Century City

Santa Clarita Valley

190th St. Corridor

Westwood

West Los Angeles

Pomona/Diamond Bar

East SF Valley

Glendale

West SF Valley

Downtown Long Beach

Pasadena

Santa Monica

Central SF Valley

El Segundo

Berkeley








Rancho Cucamonga

Temecula

Carlsbad

Downtown

Rancho Bernardo

UTC

Ventura

Oxnard/Port Hueneme

Conejo Valley

Northeast

Southside/Airport

Oak Brook

Downtown

East End

South/Southeast

Southeast


Lamorinda


Midtown

Northwest Phoenix

Central Valley East

UTC

Mountain View

Renton

1-90 Corridor

North Central

Mkt Share

5.46%

5.12%

4.56%

3.79%

3.10%

1.91%

1.10%

3.79%

28.88%

14.23%

13.13%

7.05%

6.26%

2.50%

4.87%

2.94%

10.79%

9.87%

6.28%

3.43%

3.25%

16.01%

9.85%

9.71%

2.47%

2.38%

1.05%

1.29%

0.24%

4.72%

0.47%

1.25%

3.54%

2.11%

12.39%

1.50%

5.17%

3.76%

2.23%

16.95%

3.11%

5.09%

7.13%

4.82%

2.01%

1.37%

0.60%

3.25%

9.04%

24.70%

20.11%

3.38%

5.50%

4.09%

99.61%

32.80%

23.66%

20.75%

20.14%

16.93%

12.88%

11.34%

11.33%

10.25%

9.78%

8.90%

8.59%

8.30%

6.37%

Mkt Type

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

REIT






































































MSA

Baltimore

Boston

Boston

Boston

Boston

Boston

New York

New York






Baltimore

N. New Jersey

N. New Jersey

N. New Jersey

Philadelphia

Philadelphia

Philadelphia

Philadelphia

Philadelphia

Philadelphia

Philadelphia

Philadelphia

Wilmington

Orange County

San Diego

San Diego


Chicago

Los Angeles

Atlanta

Atlanta

Atlanta

Austin

Austin

Austin

Chicago

Chicago

Chicago

Dallas

Dallas

Dallas

Dallas

Dallas

Denver

Ft. Lauderdale

Los Angeles

Los Angeles

Oakland

Orange County

Orange County

Orange County

Phoeniz

Phoeniz

Sacramento

Salt Lake City

San Diego

San Diego

San Diego

San Diego

San Francisco

San Francisco

San Francisco

San Jose

San Jose

San Jose

Seattle

SubMarket

Baltimore CBD

Northwest

East Cambridge

West

South

Back Bay/Boylston

Park/Lexington

Grand Central/UN

Southwest

Bethesda

West End/Georgetown

Gaithersburg

Crystal City

Towson

Rt. 46 Corridor

Princeton South

Parsippany Area

Burlington County

Fort Washington

Conshohocken



Camden County

Trevose/I-95

Bala Cynwyd

New Castle Co.

The City

Scripps Ranch

UTC

The Pike

Oak Brook

210 Corridor

Northeast

Central Perimeter

Northwest

North/Northwest

CBD

Southwest

Lake County

Oak Brook

North Suburbs


Far North Dallas

Richardson/Plano

LBJ/Quorum

CBD

Southeast

Hollywood

West SF Valley

Burbank

Pleasanton



Irvine Spectrum

Camelback Corridor

Scottsdale

Howe Ave/Fulton Ave

Sandy South Towne

Del Mar Heights

Rancho Bernardo

Kearny Mesa

UTC

Foster City

Palo Alto

San Mateo

Sunnyvale

Downtown

Santa Clara

405 Corridor


30.28%

11.16%

0.82%

27.10%

18.25%

17.06%

14.04%

10.58%

9.46%

7.75%

6.56%

14.04%

7.74%

7.92%

0.87%

2.50%

0.28%

4.69%

14.14%

3.17%

1.79%

5.75%

3.52%

3.47%

11.49%

5.02%

9.71%

7.74%

2.66%

1.61%

0.29%

6.27%

2.80%

19.32%

8.71%

6.01%

3.44%

2.24%

1.86%

17.74%

16.39%

5.29%

4.09%

4.66%

1.26%

12.93%

36.72%

10.05%

4.64%

4.47%

2.81%

2.14%

8.59%

6.25%

2.35%

0.76%

0.41%

6.24%

16.08%

4.40%

4.10%

1.89%

13.89%

9.89%

1.47%

28.08%

2.49%

2.38%

39.02%

Downtown

Suburban

Suburban

Suburban

Suburban

Downtown

Downtown

Downtown

Downtown

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

REIT



































































CV REIT Inc.



MSA

Dallas

Dallas

Dallas

Dallas

Dallas

Dallas

Dallas

Denver

Denver

Denver

Denver

Denver

Forth Worth

Houston

Houston

Houston

Miami

Phoeniz

Phoeniz

San Diego

San Francisco

Ft. Lauderdale

Cleveland

Chicago

Ventura








West Palm Beach

Jacksonville

Indianapolis

Indianapolis

Dallas

Dallas

Houston

Houston

Houston

Sacramento

Atlanta

Boston

Boston

Chicago

Denver


New York

Seattle


N. New Jersey

Philadelphia

Chicago

San Diego

Stamford

Boston

San Diego

Atlanta

Atlanta

Atlanta

Atlanta

Atlanta

Charlotte


Albuquerque

Austin

Austin

Austin

SubMarket

Conejo Valley

West End/Georgetown

Reston

CBD

Bethesda

Rosslyn/Ballston

Herndon/Dulles

Tyson's Corner

Boca Raton

Butler Corridor

Park Fletcher

Midtown

Far North Dallas

LBJ/Quorurn

NASA/Clear Lake


Richmond/Greenway

Hwy 50 Corridor

Downtown

Back Bay/Boylston

Financial District

Oak Brook


Minneapolis CBD

Park/Lexington

CBD

Alexandria/Oldtown

Brunswicks


East Loop

UTC

Stamford

West

UTC

Downtown

Northwest

North Fulton

Buckhead

Midtown

Uptown

Tyson's Corner

Downtown

CBD

Southwest

North/Northwest

Richardson/Piano

183 Corridor

Far North Dallas

CBD

Las Colinas

LBJ/Quorum


Northwest


Cherry Creek

Aurora

Downtown

Fort Worth CBD

Richmond/Greenway

Galleria/West Loop

West

Downtown

Central Corridor

Camelback Corridor

UTC

Financial District

Fort Lauderdale

Northeast

Oak Brook

Mkt Type

Downtown

Suburban

Suburban

Suburban

Downtown

Downtown

Suburban

Downtown

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Downtown

Suburban

Suburban

Suburban

Downtown

Downtown

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Downtown

Downtown

Suburban

Suburban

Downtown

Downtown

Downtown

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Mkt Share

5.05%

4.55%

2.75%

11.34%

1.36%

13.55%

23.97%

2.61%

2.11%

63.54%

47.10%

24.25%

18.33%

6.17%

3.53%

3.52%

22.75%

9.67%

8.51%

3.85%

2.55%

12.00%

36.09%

4.97%

2.19%

11.02%

3.16%

1.06%

5.93%

0.71%

0.00%

2.73%

3.76%

7.91%

11.75%

1.47%

1.12%

20.92%

5.43%

0.80%

7.23%

4.56%

19.14%

26.36%

1.17%

5.05%

0.68%

0.94%

4.38%

16.95%

14.67%

1.64%

16.47%

10.30%

8.87%

2.63%

2.17%

2.05%

1.35%

1.83%

1.60%

6.43%

3.66%

2.32%

0.44%

3.41%

0.24%

0.17%

1.44%

REIT

























ElderTrust













































SubMarket

Blue Ash

CBD Periphery

East

1-71 Corridor

Tri-County

South

West

East

Suburban

Park 100

Greenwood

Keystone Crossing

Park Fletcher

Castleton

Midtown

College Park

Northwest County

South County

Downtown

West County

Mid County

Columbia

Monterey Park

Tyson's Corner

North Market

Downtown

Southside/Airport

Central Perimeter

Northeast

Northwest

CBD

North/Northwest

Financial District

Government Center

Northwest

West

East Cambridge

South

West Cook

West Loop

East Loop

Lake County

O'Hare

Oak Brook

Downtown

Suburban

South Dallas

Central

LBJ East


LBJ/Quorum

CBD

Southeast

Fort Worth CBD

Downtown


West

North/North Belt

Downtown

Westwood

Beverly Hills

Pasadena

Downtown LA

Minneapolis CBD

Downtown

Park/Lexington

North

Northwest


MSA

Cincinatti

Cincinatti

Cincinatti

Cincinatti

Cincinatti

Cleveland

Cleveland

Cleveland

Columbus

Indianapolis

Indianapolis

Indianapolis

Indianapolis

Indianapolis

Indianapolis

Indianapolis

St. Louis

St. Louis

St. Louis

St. Louis

St. Louis

Baltimore

Los Angeles


Hartford

Albuquerque

Atlanta

Atlanta

Atlanta

Atlanta

Austin

Austin

Boston

Boston

Boston

Boston

Boston

Boston

Chicago

Chicago

Chicago

Chicago

Chicago

Chicago

Cleveland

Columbus

Dallas

Dallas

Dallas

Dallas

Dallas

Dallas

Denver

Forth Worth

Ft. Lauderdale

Houston

Houston

Houston

Indianapolis

Los Angeles

Los Angeles

Los Angeles

Los Angeles


Nashville

New York

Oklahoma City

Oklahoma City

Orange County

Mkt Share

1.20%

0.09%

8.52%

32.70%

19.62%

5.91%

3.47%

13.89%

8.46%

17.26%

16.66%

12.66%

8.30%

2.93%

1.53%

86.16%

18.51%

8.87%

8.77%

7.09%

0.85%

6.44%

10.41%

65.50%

23.86%

9.97%

8.38%

1.68%

1.03%

3.48%

3.00%

5.77%

9.84%

8.09%

4.09%

9.33%

51.07%

13.19%

48.71%

41.76%

27.17%

22.26%

17.95%

18.43%

7.14%

7.07%

12.76%

53.84%

34.53%

28.48%

24.57%

9.60%

5.95%

3.85%

16.23%

15.17%

6.99%

2.05%

1.49%

2.30%

6.45%

7.10%

5.87%

2.86%

9.33%

2.10%

7.68%

2.46%

44.74%

Mkt Type

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Downtown

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Downtown

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Downtown

Downtown

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Downtown

Downtown

Downtown

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

REIT






































































MSA

Orange County

Philadelphia

Philadelphia

Philadelphia

Phoeniz

Portland, OR

San Diego

San Francisco

San Francisco

San Jose

San Jose

San Jose

Seattle

Seattle

St. Louis

Stamford

Tampa








West Palm Beach

Phoeniz

San Francisco

Los Angeles


Phoeniz

San Diego

Cleveland

Denver

Indianapolis


Los Angeles

Oakland

Orange County

San Francisco

Chicago

Boston

Boston

Boston

Chicago

Chicago

Chicago

Detroit

Houston

Kansas City

Los Angeles

Los Angeles


N. New Jersey

N. New Jersey

Orange County

Phoeniz

Salt Lake City

San Francisco

Seattle

St. Louis

St. Louis

Tampa





Chicago

Chicago

Chicago

SubMarket

The City

Conshohocken

Center City


Central Corridor

Downtown

UTC


Financial District

Mountain View

Sunnyvale

Santa Clara

Bellevue CBD

CBD

Mid County

Stamford

Westshore/Airport

Sterling

Crystal City

Fairfax/Center

Reston

CBD

Tyson's Corner

Alexandria/Oldtown

West Palm Beach

Scottsdale

Palo Alto

Burbank

Suburban St. Paul

Scottsdale

Rancho Bemardo

Downtown

North

Downtown

North PG County

Beach Cities

Fremont


Redwood City

West Loop

Metrowest

Northwest

South

O'Hare

Schaumburg

Oak Brook


Richmond/Greenway

North Johnson County

Palos Verdes

Pomona/Diamond Bar

1-494

Route 78 East

Parsippany Area


Camelback Corridor

Central Valley East

San Mateo

1-90 Corridor

Mid County

West County

NW Tampa

Springfield

The Pike

Tyson's Corner

Alexandria/Oldtown

Schaumburg

Lake County

O'Hare

Mkt Type

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Downtown

Downtown

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Mkt Share

2.06%

42.87%

0.90%

2.81%

29.32%

6.54%

3.48%

6.15%

1.51%

4.89%

0.00%

1.91%

0.41%

0.34%

0.35%

1.43%

0.86%

11.12%

2.03%

0.72%

1.15%

0.65%

0.37%

0.91%

0.47%

2.14%

10.59%

9.92%

1.75%

6.93%

1.19%

8.60%

0.69%

3.16%

2.91%

12.68%

5.94%

13.83%

5.22%

18.02%

14.31%

12.63%

11.03%

3.16%

2.58%

29.07%

25.82%

4.06%

3.83%

3.89%

3.08%

19.27%

13.64%

6.62%

38.48%

16.83%

9.28%

18.78%

0.81%

4.77%

0.63%

3.53%

11.28%

4.56%

1.55%

1.24%

3.71%

3.37%

1.96%

REIT
















































HMG/Courtland Properties Inc.






JP Realty Inc.

Kilroy Realty Corp.

Kilroy Realty Corp.

Kilroy Realty Corp.

Kilroy Realty Corp.

Kilroy Realty Corp.

Kilroy Realty Corp.

Kilroy Realty Corp.

Kilroy Realty Corp.

Kilroy Realty Corp.

Koger Equity Inc.

Koger Equity Inc.

Koger Equity Inc.

Koger Equity Inc.

Koger Equity Inc.

Koger Equity Inc.

SubMarket

North Suburbs

Oak Brook

South Suburbs

Tri-County

Suburban


Troy


Midway

CBD

East Midtown South

Center City

Northlake

Northeast

Central Perimeter

Downtown

Northwest


1-77 Corridor

Southpark

Hollywood

Plantation

Southwest Broward

Cypress Creek

Downtown

Fort Lauderdale

Arlington

Downtown

Butler Corridor

Kendall

Coral Gables

Unclassified

Green Hills/Brentwwod

Airport South

Airport North

Downtown

Winter Park

South West Center

Maitland Center

1-75/US 301

NW Tampa

SW St. Petersburg

NE Tampa

Westshore/Airport

Boca Raton

North Palm Beach

West Palm Beach

Coconut Grove

Downtown LA

Newark

East County

Conejo Valley

Pompano Beach

Interchange

Suburban Long Beach

El Segundo

Santa Monica

Torrance

West SF Valley



Anaheim Hills

Conejo Valley

Northeast

Central Perimeter

CBD

Hwy 51-Crownpoint

Butler Corridor

SE St. Petersburg

MSA

West Palm Beach

West Palm Beach

Miami

Los Angeles

Oakland

San Diego

Ventura

Ft. Lauderdale

Salt Lake City

Los Angeles

Los Angeles

Los Angeles

Los Angeles

Los Angeles

Orange County

Orange County

Orange County

Ventura

Atlanta

Atlanta

Austin

Charlotte

Jacksonville

Tampa

Chicago

Chicago

Chicago

Cincinatti

Columbus

Detroit

Detroit

Detroit


Austin

New York

Philadelphia

Atlanta

Atlanta

Atlanta

Atlanta

Atlanta

Baltimore

Charlotte

Charlotte

Ft. Lauderdale

Ft. Lauderdale

Ft. Lauderdale

Ft. Lauderdale

Ft. Lauderdale

Ft. Lauderdale

Jacksonville

Jacksonville

Jacksonville

Miami

Miami

Miami

Nashville

Nashville

Nashville

Nashville

Orlando

Orlando

Orlando

Tampa

Tampa

Tampa

Tampa

Tampa

West Palm Beach

Mkt Type

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Downtown

Downtown

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Mkt Share

9.41%

5.81%

2.66%

1.93%

0.00%

0.14%

22.72%

67.60%

1.05%

3.43%

57.79%

18.35%

9.87%

3.19%

2.71%

0.99%

6.82%

5.46%

5.07%

1.87%

1.47%

0.78%

5.61%

8.10%

0.60%

51.98%

21.83%

2.27%

21.94%

6.78%

4.83%

3.15%

2.57%

2.36%

56.10%

11.26%

6.27%

9.59%

3.65%

1.38%

35.88%

13.73%

9.66%

5.60%

31.75%

17.93%

5.99%

72.24%

34.48%

22.37%

14.89%

1.47%

0.65%

0.61%

3.60%

5.72%

5.15%

1.48%

1.07%

11.75%

6.93%

1.21%

2.23%

10.95%

4.44%

1.35%

0.58%

0.43%

27.64%

REIT






























































Master Realty Properties Inc.






MGI Properties

MGI Properties

MSA

N. New Jersey

N. New Jersey

Philadelphia

Philadelphia

Phoeniz

Phoeniz

Phoeniz

San Francisco

Stamford

Westchester

Westchester

Westchester

Westchester

Westchester

Kansas City

Atlanta

Los Angeles

Phoeniz

New York

New York

Boston

Boston

Houston

Houston

Houston

Long Island

N. New Jersey

N. New Jersey

N. New Jersey

N. New Jersey

N. New Jersey

N. New Jersey

N. New Jersey

N. New Jersey

N. New Jersey

N. New Jersey

N. New Jersey

N. New Jersey

N. New Jersey

N. New Jersey

N. New Jersey

N. New Jersey

N. New Jersey

Detroit

Hartford

Philadelphia

Phoeniz

Salt Lake City

Tampa

Baltimore

Baltimore

Detroit

Detroit

Jacksonville

Philadelphia

Philadelphia

Philadelphia

Tampa


West Palm Beach

West Palm Beach

Austin

Dallas

Dallas

Dallas

Dallas

Forth Worth

Forth Worth

Houston

SubMarket

1-275 Corridor

West Market

Trevose/I-95

Northwest Phoenix

Research Park

NW Tampa

Annapolis

Columbia

Troy


Butler Corridor


Burlington County

Camden County

I-75/US 301

Inside Beltway

Palm Beach

Boca Raton

CBD

Richardson/Plano

Central


LBJ/Quorum

Irving/Airport

Brookhollow Arlington


Northwest

Galleria/West Loop

West

Garden City

Route 22

Southern Monmouth


North Central Bergen

North 17 Corridor

Shorthills/Millburn

Rt. 46 Corridor


Parsippany Area

Morristown Region

Princeton North

GW Bridge


Hudson Waterfront

Route 78 East


Rt 3 & Garden State Parkway

Edison/Woodbridge

Brunswicks


Burlington County

Sun City/Glendale

Paradise Valley

Northwest Phoenix


Greenwich

Ramapo

Southwest

Southeast

West 1-287 Corridor

White Plains CBD

Downtown

Northwest

West SF Valley

Northwest Phoenix

Columbus Circle

Grand Central/UN

Metrowest

North

Mkt Type

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Downtown

Downtown

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Mkt Share

4.02%

3.16%

2.62%

1.57%

21.13%

5.13%

3.30%

1.66%

0.83%

0.78%

3.20%

42.13%

38.50%

37.88%

37.30%

29.89%

24.97%

17.96%

15.43%

15.12%

15.06%

8.15%

7.98%

7.32%

6.24%

6.13%

-5.63%

5.44%

3.05%

2.24%

8.22%

2.09%

23.59%

12.15%

2.97%

11.66%

5.01%

3.53%

11.00%

7.87%

81.49%

6.11%

17.73%

3.96%

4.91%

4.23%

17.12%

52.97%

7.55%

1.67%

4.61%

1.19%

33.95%

1.00%

4.08%

3.20%

31.63%

25.22%

22.75%

18.34%

3.21%

0.00%

0.81%

0.43%

2.37%

10.79%

2.91%

1.87%

1.47%

REIT

MGI Properties

MGI Properties

MGI Properties

MGI Properties

MGI Properties

MGI Properties

MGI Properties































































MSA

Boston

Charlotte

Detroit

Hartford

Hartford

N. New Jersey

Tampa

Baltimore

Atlanta

Chicago

Sacramento


N. New Jersey


San Francisco

San Francisco

Long Island

Oakland

Orange County

Orange County

Riverside

Atlanta

Atlanta

Atlanta

Atlanta

Charlotte

Columbus

Dallas

Dallas

Houston

Houston

Indianapolis




Boston

Atlanta

Atlanta

Austin

Baltimore

Chicago

Chicago

Chicago

Dallas

Dallas

Dallas

Dallas

Dallas

Denver

Detroit

Detroit

Los Angeles

Los Angeles

Phoeniz

San Diego








Westchester

Chicago

Chicago

Chicago

Chicago

Nashville

St. Louis

SubMarket

Financial District

Southpark

Ann Arbor

West Market

South Market

Route 287

NW Tampa

Glen Burnie

Northwest

O'Hare

Hwy 50 Corridor

CBD

Princeton North

1-494


Financial District

Hauppauge

Hayward



Rancho Cucamonga

Southside/Airport

Central Perimeter

Downtown

Northwest

1-77 Corridor

Suburban

Richardson/Plano

Las Colinas

West

North/North Belt

Speedway

Sterling

Annandale

Reston

Financial District

Northwest

Northlake

CBD

BWI Airport

Lake County

O'Hare

Oak Brook

Mid Stemmons


LBJ/Quorum

Central

Las Colinas

Southeast

1-275 Corridor


East SF Valley

Central SF Valley

East Valley

Carlsbad

Sterling

Annandale

North PG County

The Pike

Bethesda

Reston

Fairfax/Center

East 1-287 Corridor

West Cook

East Loop

Oak Brook

Schaumburg

Downtown

Mid County

Mkt Type

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Downtown

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Mkt Share

5.17%

2.21%

1.79%

1.22%

40.10%

10.25%

3.11%

1.96%

1.34%

3.16%

6.80%

1.61%

6.93%

2.31%

2.18%

7.08%

40.68%

15.77%

5.91%

3.83%

3.04%

2.21%

1.26%

0.32%

10.16%

5.86%

2.45%

1.43%

5.55%

1.26%

1.44%

0.19%

0.79%

0.69%

2.99%

0.64%

2.87%

29.03%

0.44%

0.64%

2.58%

1.57%

1.45%

2.61%

5.62%

0.00%

0.69%

1.62%

4.06%

2.51%

4.96%

3.93%

1.23%

0.65%

0.64%

4.50%

0.43%

3.07%

0.67%

3.00%

2.24%

26.02%

10.40%

4.42%

1.41%

0.89%

2.87%

2.19%

16.82%

MSA

Kansas City

San Francisco

Los Angeles

San Diego

San Diego

Long Island

Long Island

Long Island

Long Island

Long Island

N. New Jersey

N. New Jersey

N. New Jersey

N. New Jersey

N. New Jersey

Stamford

Westchester

Westchester

Westchester

Westchester

Westchester

Ft. Lauderdale

Tampa

Baltimore

Baltimore

Baltimore

Baltimore

Baltimore

Las Vegas

Las Vegas

Los Angeles

Phoeniz



Dallas

Dallas

Seattle

New York

New York

New York

New York

New York

New York

Los Angeles

Los Angeles

Los Angeles

Los Angeles

Oakland

Oakland

Oakland

Oakland

Oakland

Orange County

Orange County

Orange County

Orange County

Orange County

Portland, OR

Portland, OR

Riverside

Riverside

Sacramento

Sacramento

Sacramento

San Diego

San Diego

San Diego

San Diego

San Francisco

REIT



Public Storage Inc.

Public Storage Inc.

Public Storage Inc.



















Rouse Company

Rouse Company

Rouse Company

Rouse Company

Rouse Company

Rouse Company

Rouse Company

Rouse Company

Rouse Company

Saul Centers Inc.

Saul Centers Inc.



Shurgard Storage Centers Inc.

































SubMarket


San Mateo

190th St. Corridor

UTC

Sorrento Mesa

Melville

Garden City

Hauppauge

Jericho

Lake Success

Shorthills/Millburn


Hackensack

Morristown Region

Princeton North

Stamford

West 1-287 Corridor

East 1-287 Corridor

Southeast

Northwest

White Plains CBD

Fort Lauderdale

1-75/US 301


Columbia

Baltimore City

Hunt Valley

Baltimore CBD

Summerlin

University Area

LAX

Central Corridor

Shady Grove

CBD

CBD

Stemmons

Unclassified Tacoma Area


Time Square/Theatre District

Garment District

East Midtown South

Grand Central/UN

Columbus Circle

Marina Del Rey

Santa Monica

Pasadena

West Los Angeles

Hayward

Fremont

Lamorinda

Oakland

Concord




The City


Lake Oswego

Downtown


Corona

Roseville/Rocklin

Watt Ave

Point West

UTC

Rancho Bernardo

Carlsbad

Downtown

Brisbane


2.51%

5.16%

4.11%

0.74%

1.93%

0.49%

8.82%

2.51%

2.48%

2.40%

2.05%

1.71%

0.61%

21.92%

14.68%

13.52%

5.90%

26.24%

12.22%

9.94%

7.39%

6.81%

69.42%

38.35%

14.71%

7.30%

7.09%

6.54%

1.36%

3.24%

33.32%

20.30%

9.64%

4.34%

2.10%

40.69%

24.76%

26.50%

26.48%

6.47%

6.22%

22.77%

3.94%

12.72%

6.57%

16.85%

7.81%

6.41%

14.26%

5.42%

3.84%

2.61%

60.09%

0.78%

0.86%

3.39%

7.82%

4.91%

24.95%

16.76%

12.04%

6.53%

1.39%

56.25%

10.01%

9.80%

2.15%

2.03%

6.68%

Suburban

Suburban

Downtown

Suburban

Downtown

Downtown

Suburban

Suburban

Downtown

Downtown

Downtown

Downtown

Downtown

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

REIT
































































Washington REIT

Washington REIT

Washington REIT

Washington REIT

Washington REIT

Washington REIT

SubMarket

Southeast

Butler Corridor

Melville

Beach Cities

Suburban St. Paul

Parsippany Area

Newark

Fremont

Anaheim Hills

East Valley

Northwest Phoenix

South San Jose

Mountain View

Cupertino

North PG County


Greenwich

Howe Ave/Fulton Ave

Central Perimeter

Downtown


Penn Station

East Midtown South

Columbus Circle

Third Avenue

Grand Central/UN

Park/Lexington

Falls Church

The Pike

North PG County

Reston

Tyson's Corner

Gaithersburg

Foster City

Palo Alto

Menlo Park

Downtown

Milpitas

Santa Clara

Bellevue CBD

405 Corridor

Renton

Federal Way


Birmingham/Bloomfield Hills

Columbus Circle


Grand Central/UN

South West Center

Central Corridor

East Central

River North

CBD

West

Financial District

Downtown St. Petersburg

Sterling

Fairfax/Center

Northeast

Central Perimeter

North

Northwest

Metrowest

Lake County

Oak Brook

Richardson/Piano

LBJ/Quorum

Las Colinas

Northwest

MSA

San Francisco

San Francisco

San Francisco

San Jose

San Jose

San Jose

Seattle

Seattle

Seattle

Seattle

Detroit

Detroit

New York

New York

New York

Orlando

Phoeniz

Tucson

Chicago

Dallas

Houston

San Francisco

Tampa



Atlanta

Atlanta

Boston

Boston

Boston

Chicago

Chicago

Dallas

Dallas

Dallas

Denver

Denver

Jacksonville

Long Island

Los Angeles


N. New Jersey

Oakland

Oakland

Orange County

Phoeniz

Phoeniz

San Jose

San Jose

San Jose


Detroit

Stamford

Sacramento

Atlanta

Atlanta

N. New Jersey

New York

New York

New York

New York

New York

New York







Mkt Share

45.74%

9.92%

4.60%

2.31%

1.42%

0.52%

1.31%

0.32%

0.49%

2.74%

19.96%

5.26%

0.95%

0.72%

8.61%

2.77%

4.66%

5.31%

30.79%

4.44%

4.40%

17.81%

3.47%

30.35%

8.29%

2.66%

5.22%

4.71%

2.94%

1.62%

12.69%

8.23%

6.72%

4.31%

2.90%

1.86%

5.18%

0.63%

0.34%

0.29%

11.94%

14.98%

1.42%

2.88%

2.26%

3.43%

1.79%

1.51%

1.64%

0.89%

9.21%

21.43%

7.63%

2.57%

32.98%

19.70%

10.77%

26.69%

14.47%

13.61%

12.37%

0.22%

0.00%

3.85%

1.42%

0.86%

8.29%

2.37%

13.29%

Mkt Type

Downtown

Downtown

Suburban

Downtown

Suburban

Downtown

Downtown

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Downtown

Suburban

Downtown

Downtown

Downtown

Downtown

Downtown

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

REIT

Washington REIT

Washington REIT

Washington REIT

Weeks Corp.

Weeks Corp.

Weeks Corp.

Weeks Corp.

Weeks Corp.







MSA




Atlanta

Atlanta

Atlanta

Atlanta

Miami

Austin

Houston

Houston

Orange County

San Francisco

San Francisco

SubMarket

Alexandria/Oldtown

Rosslyn/Ballston

CBD

Southside/Airport

Northeast

Northlake

Northwest

Airport

North/Northwest


West


Western S.F.

Outer So. Market

Mkt Type

Suburban

Suburban

Downtown

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Suburban

Mkt Share

1.71%

1.18%

0.66%

3.77%

2.65%

1.49%

0.57%

1.00%

1.96%

1.49%

0.58%

4.82%

1.93%

1.05%

APPENDIX 7

INDEX TABLES

Residential Sector The MSA Level

REIT




















BRE Properties Inc.











Boddie-Noell Properties Inc.





CenterPoint Properties Trust

Roberts Realty Investors Inc.

Washington REIT

Pennsylvania REIT





MGI Properties






Aegis Realty Inc.







Index 2

0.0077%

0.0089%

0.0070%

0.0065%

0.0051%

0.0096%

0.0059%

0.0041%

0.0059%

0.0047%

0.0042%

0.0047%

0.0031%

0.0031%

0.0018%

0.0020%

0.0012%

0.0010%

0.0009%

0.0009%

0.0012%

0.0005%

0.0004%

0.0004%

0.0003%

0.0002%

0.0002%

0.0001%

0.0001%

0.0001%

0.0000%

0.1785%

0.1280%

0.0768%

0.0650%

0.0652%

0.0407%

0.0374%

0.0296%

0.0302%

0.0267%

0.0248%

0.0192%

0.0159%

0.0142%

0.0145%

0.0188%

0.0145%

0.0103%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

Index 1

0.7997%

0.7994%

0.7158%

0.7144%

0.7122%

0.6830%

0.6585%

0.6402%

0.6355%

0.6024%

0.5906%

0.5812%

0.5579%

0.5499%

0.3819%

0.3285%

0.3115%

0.3085%

0.3036%

0.2997%

0.2883%

0.1989%

0.1877%

0.1615%

0.1593%

0.1390%

0.1282%

0.1097%

0.1072%

0.0849%

0.0564%

4.1082%

2.6890%

2.6644%

2.2762%

1.9466%

1.8389%

1.7932%

1.5126%

1.4528%

1.3833%

1.3144%

1.2410%

1.2149%

1.1367%

1.0986%

1.0286%

0.8647%

0.8348%

0.0538%

0.0483%

0.0458%

0.0412%

0.0357%

0.0323%

0.0262%

Index 3

0.1675%

0.0322%

0.0706%

0.0321%

0.0079%

0.0182%

0.0078%

0.0171%

0.0025%

0.0170%

0.0032%

0.0020%

0.0147%

0.0050%

0.0041%

0.0047%

0.0034%

0.0024%

0.0015%

0.0009%

0.0041%

0.0007%

0.0051%

0.0001%

0.0001%

0.0003%

0.0002%

0.0002%

0.0001%

0.0001%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0020%

0.0033%

0.0041%

0.0018%

0.0012%

0.0020%

0.0006%

0.0031%

0.0015%

0.0004%

0.0003%

0.0003%

0.0010%

0.0009%

0.0009%

0.0002%

0.0002%

Retail Sector The County Level

REIT

Agree Realty Corp

First Union Real E state

Mid-America Real ty Investments

Crown American R Lealty Trust

Tanger Factory Ou

JP Realty Inc.

tlet Centers

Horizon Group Inc

Glimcher Realty T rust

CBL & Associates

Prime Retail Inc.

Properties

Macerich Co.

Developers Diversi fled Realty

Colonial Properties

Simon DeBartolo

Trust

Group Inc.

National Income R ealty Trust


Mark Centers Trus:

General Growth Pr operties

Sizeler Property In

Ramco-Gershenso vestors n Properties

Rouse Co.

EQK Realty Invest ors I

New Plan Realty T rust

FAC Realty Trust I nc.

Pennsylvania REIT

Western Investmen t RE Trust

Property Capital T rust

Malan Realty Inve stors Inc.

USP Real Estate In ivestment

Alexander's Inc.

IRT Property Co.

Kranzco Realty Tr ust


Regency Realty C )rp.

Chelsea GCA Real ty Inc.

Taubman Realty G roup LP

Westfield America

Rouse Company

Inc.

Weingarten Realty

Mid-Atlantic Realt

Investors

y Trust

Bradley Real Estat eInc.

Transcontinental R .ealty

Cousins Properties

Investors Real Est

Inc. ate Trust

Mills Corp.

Urban Shopping C enters Inc.

Atlantic Realty Tn ust


Vornado Realty T rust

Washington REIT

Ocwen Asset Inve stment Corp.

Federal Realty Inv estment


Kimco Realty Cor

Glenborough Real p. ty Trust Inc.

United Investors R Lealty Trust

Berkshire Realty Co.

Saul Centers Inc.

Burnham Pacific I roperties

Inland Real Estate

Alexander Haager

EastGroup Proper

Meditrust Corp.

Corp.

Properties ties Inc.

Urstadt Biddle Pr

Palmetto Real Est

First Washington

Price REIT Inc.

operties Inc. ate Trust

Realty Trust

Index)

9.1777%

8.0028%

7.8941%

7.6431%

7.4627%

7.4075%

6.4335%

6.3722%

5.4714%

5.3649%

5.1921%

4.8080%

4.6994%

4.5137%

4.5064%

4.0980%

3.9206%

3.8720%

3.7464%

3.6399%

3.3596%

13.3360%

13.1358%

12.7346%

12.2011%

11.9295%

11.8550%

11.7506%

11.4952%

11.0911%

10.6530%

10.1818%

9.9393%

9.5865%

9.4356%

3.2365%

3.0175%

2.8561%

2.6873%

2.6398%

2.5974%

2.2531%

1.9877%

42.9254%

39.7443%

33.0780%

31.0107%

30.1606%

29.4827%

24.9227%

23.6778%

23.4061%

21.6288%

21.5654%

20.9418%

20.7614%

19.4313%

19.2382%

17.9252%

17.1612%

16.4161%

16.3407%

15.2686%

15.0358%

14.9333%

14.0391%

13.7869%

Index 2

5.3792%

6.7795%

5.6766%

5.5784%

4.3224%

6.5494%

5.5149%

2.2300%

5.5382%

4.7137%

0.6069%

0.4208%

1.3388%

0.3675%

0.4978%

0.2208%

0.3211%

0.2731%

0.5491%

0.7913%

1.3175%

0.1502%

0.1524%

0.3373%

0.1304%

0.1653%

0.0816%

0.1045%

0.1500%

0.0675%

0.1103%

0.0789%

3.1046%

6.7000%

1.6217%

3.4161%

2.4492%

1.4054%

3.9095%

5.1343%

5.3896%

5.9291%

3.2005%

1.5445%

1.5713%

1.3916%

3.7865%

1.1828%

2.3690%

0.5842%

0.9293%

0.5487%

0.6908%

3~ 4.8921%

2 5.1380%

1

1

9.2005%

2.3213%

I 6.3910%

1

[ 4.1380%

3.6609%

).7133%

7.9095%

1 1.1614%

8.6020%

1 2.6371%

8.5212%

6.2701%

Index 3

3.0170%

1.7267%

1.4687%

0.6562%

0.9158%

0.7851%

0.4035%

0.2848%

0.2346%

0.4741%

0.2252%

0.1252%

0.4438%

0.0709%

1.4282%

0.2129%

0.2684%

0.0712%

0.7643%

0.2649%

0.1626%

2.2300%

0.0558%

0.1037%

0.4214%

0.2163%

1.6217%

0.2154%

0.6120%

1.4054%

0.1080%

0.2709%

0.1388%

0.1338%

0.2284%

0.0767%

0.1298%

0.2893%

0.1197%

0.1941%

0.0567%

0.5842%

0.3578%

0.5487%

0.0870%

0.1155%

0.2628%

0.0538%

0.0363%

0.0611%

0.2208%

0.0322%

0.1356%

0.0051%

0.1310%

0.0640%

0.0705%

0.0320%

0.0104%

0.0237%

0.0208%

0.0816%

0.0495%

0.0175%

0.0675%

0.0035%

0.0045%





Aegis Realty Inc.

CV REIT Inc.

MGI Properties



Monmouth Real Estate

AMB Property Corp.

Koger Equity Inc.




Property Resources Equity Tr.




Pacific REIT


Angeles Mortgage Investment


BRE Properties Inc.


Weeks Corp.



Manufactured Home Communities


1.9697%

1.8448%

1.6340%

1.2649%

1.2070%

1.0408%

0.9211%

0.8807%

0.8505%

0.7818%

0.7624%

0.6964%

0.6567%

0.6075%

0.5540%

0.4604%

0.4517%

0.4420%

0.3401%

0.2578%

0.2573%

0.2270%

0.2139%

0.1573%

0.1155%

0.1134%

0.0747%

0.0702%

0.0558%

0.0355%

0.0612%

0.0340%

0.0294%

0.0194%

0.0308%

0.0129%

0.0095%

0.0078%

0.0089%

0.0061%

0.0065%

0.0049%

0.0043%

0.0037%

0.0031%

0.0021%

0.0020%

0.0020%

0.0012%

0.0007%

0.0007%

0.0005%

0.0008%

0.0003%

0.0001%

0.0001%

0.0001%

0.0000%

0.0000%

0.0000%

0.0127%

0.0340%

0.0140%

0.0100%

0.0024%

0.0052%

0.0050%

0.0054%

0.0036%

0.0061%

0.0038%

0.0049%

0.0043%

0.0037%

0.0031%

0.0021%

0.0020%

0.0020%

0.0012%

0.0007%

0.0007%

0.0005%

0.0003%

0.0002%

0.0001%

0.0001%

0.0001%

0.0000%

0.0000%

0.0000%

Retail Sector The State Level

REIT

JP Realty Inc.


Macerich Co.









Rouse Co.


Pennsylvania REIT








Inland Real Estate Corp.





Kimco Realty Corp.

Investors Real Estate Trust


IRT Property Co.

Saul Centers Inc.


Mark Centers Trust







Rouse Company


Mills Corp.

Horizon Group Inc.

Malan Realty Investors Inc.

Agree Realty Corp.


Washington REIT

Price REIT Inc.

Meditrust Corp.


Prime Retail Inc.







Palmetto Real Estate Trust



Tanger Factory Outlet Centers



AMB Property Corp.



Alexander's Inc.

Index 2

0.0777%

0.0663%

0.0959%

0.0776%

0.0629%

0.0633%

0.0445%

0.0629%

0.0381%

0.0280%

0.0387%

0.0285%

0.0217%

0.0268%

0.0227%

0.0186%

0.0167%

0.0247%

0.0151%

0.0166%

0.0154%

0.0135%

0.0122%

0.0114%

0.0096%

0.0117%

0.0136%

0.0103%

0.0073%

0.0076%

0.0092%

0.0064%

0.0055%

0.0074%

0.0042%

0.0049%

0.0041%

0.0042%

0.0042%

0.0035%

0.0031%

0.0019%

0.0030%

0.0034%

0.0015%

0.0011%

0.0011%

0.0009%

0.0012%

0.0009%

0.0007%

0.0008%

0.0005%

0.0005%

0.0004%

1.8653%

0.8114%

1.1294%

0.1919%

0.1897%

0.1170%

0.1305%

0.1066%

0.1092%

0.0906%

0.1459%

0.0877%

Index I

10.9292%

6.9769%

5.9554%

3.6551%

1.6107%

1.5722%

1.4618%

1.4526%

1.3965%

1.3783%

1.3635%

1.2882%

1.2815%

1.1301%

1.0968%

1.0857%

1.0795%

1.0257%

0.9673%

0.9496%

0.9307%

0.9236%

0.8548%

0.8250%

0.8086%

0.7353%

0.6858%

0.6660%

3.2785%

3.2478%

3.2455%

2.8313%

2.7372%

2.6758%

2.6507%

2.4149%

2.3519%

2.2767%

2.2716%

2.2449%

2.1669%

1.9118%

1.8711%

1.7125%

1.6727%

0.6642%

0.6056%

0.5799%

0.5394%

0.5370%

0.5154%

0.5134%

0.4831%

0.4352%

0.4252%

0.3886%

0.3264%

0.3250%

0.2998%

0.2998%

0.2877%

0.2691%

0.2635%

0.2418%

0.2238%

0.2187%

0.2067%

Index 3

0.0219%

0.0245%

0.0280%

0.0082%

0.0099%

0.0029%

0.0252%

0.0075%

0.0086%

0.0189%

0.0051%

0.0023%

0.0186%

0.0115%

0.0050%

0.4379%

0.0709%

0.0771%

0.0406%

0.0240%

0.0705%

0.0734%

0.0766%

0.0175%

0.0063%

0.0199%

0.0104%

0.0353%

0.0368%

0.0311%

0.0015%

0.0021%

0.0012%

0.0022%

0.0007%

0.0018%

0.0022%

0.0004%

0.0021%

0.0004%

0.0019%

0.0010%

0.0009%

0.0002%

0.0044%

0.0093%

0.0064%

0.0077%

0.0011%

0.0029%

0.0085%

0.0037%

0.0045%

0.0019%

0.0045%

0.0009%

0.0015%

0.0011%

0.0008%

0.0009%

0.0001%

0.0007%

0.0004%

0.0005%

0.0002%

0.0002%

0.0004%



Koger Equity Inc.


CV REIT Inc.

Aegis Realty Inc.


MGI Properties






Angeles Mortgage Investment








Monmouth Real Estate


BRE Properties Inc.


Pacific REIT

Weeks Corp.



Property Resources Equity Tr.

Manufactured Home Communities


0.0004%

0.0004%

0.0003%

0.0003%

0.0003%

0.0003%

0.0002%

0.0002%

0.0002%

0.0003%

0.0002%

0.0001%

0.0001%

0.0001%

0.0001%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.1923%

0.1897%

0.1795%

0.1652%

0.1482%

0.1390%

0.1361%

0.1321%

0.1264%

0.1258%

0.1068%

0.0926%

0.0851%

0.0844%

0.0715%

0.0685%

0.0682%

0.0646%

0.0516%

0.0409%

0.0364%

0.0321%

0.0254%

0.0200%

0.0174%

0.0148%

0.0099%

0.0085%

0.0077%

0.0064%

0.0032%

0.0017%

0.0003%

0.0002%

0.0003%

0.0001%

0.0002%

0.0000%

0.0002%

0.0001%

0.0000%

0.0001%

0.0001%

0.0000%

0.0001%

0.0001%

0.0001%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

REIT

JP Realty Inc.







Koger Equity Inc.





Rouse Company

Arden Realty Inc.







Kilroy Realty Corp.






Shurgard Storage Centers Inc.






Agree Realty Corp.

Burmham Pacific Properties

Public Storage Inc.



Washington REIT















Saul Centers Inc.







MGI Properties


Weeks Corp.






Office Sector The TWR Market Level

Index 1

40.7787%

31.5044%

25.9915%

24.4523%

24.0193%

24.0012%

23.7012%

23.5421%

21.3775%

21.3753%

21.3294%

21.0987%

20.1917%

19.6519%

19.6273%

17.2914%

17.2308%

17.0885%

16.9915%

15.4258%

14.1654%

13.2782%

10.5978%

10.5521%

9.3935%

9.0370%

8.8154%

8.2904%

8.1224%

8.0168%

7.8955%

7.7707%

7.1316%

6.9961%

5.9980%

5.6159%

5.5061%

5.3824%

4.9898%

4.8227%

4.6673%

4.3290%

4.2786%

3.8901%

3.7463%

3.4256%

3.2524%

3.2422%

2.9027%

2.8713%

2.8129%

2.7310%

2.6192%

2.5721%

2.5560%

2.5335%

2.5038%

2.3943%

2.3808%

2.2491%

2.1676%

1.9581%

1.9298%

1.9107%

1.6171%

1.4918%

1.3611%

Index 2

1.4328%

0.8167%

0.7771%

1.0562%

0.9558%

1.7862%

0.7680%

1.3940%

0.5086%

0.5374%

0.3941%

0.6337%

0.3201%

0.4075%

0.3996%

0.2326%

18.9945%

18.7710%

10.8066%

6.0804%

10.0531%

9.0463%

15.1614%

9.4263%

8.7741%

6.6614%

7.6873%

6.7285%

5.5951%

10.0276%

5.1158%

4.6976%

3.4756%

6.2114%

3.7601%

4.4285%

2.9274%

1.9666%

1.6751%

2.0998%

0.2653%

0.2705%

0.2306%

0.2896%

0.4035%

0.1173%

0.1058%

0.1569%

0.1132%

0.0824%

0.0791%

0.0746%

0.0966%

0.0901%

0.1046%

0.1128%

0.0627%

0.0661%

0.0924%

0.0738%

0.0487%

0.0497%

0.0372%

0.0365%

0.0389%

0.0277%

0.0217%

Index 3

0.0903%

0.0377%

0.1367%

0.0412%

0.0240%

0.1173%

0.1058%

0.0473%

0.0642%

0.0824%

0.0791%

0.0746%

0.0536%

0.0286%

0.0244%

0.0576%

0.0627%

0.0355%

0.0318%

0.0104%

0.0097%

0.0111%

0.0372%

0.0365%

0.0079%

0.0069%

0.0074%

0.1213%

0.6235%

0.6414%

0.2170%

0.4647%

0.4473%

0.8167%

0.7771%

0.2270%

0.1406%

0.0773%

0.4775%

0.0821%

0.5086%

0.3106%

0.1714%

0.1101%

0.1985%

0.0690%

0.0426%

0.2326%

8.9433%

7.0332%

1.6725%

4.0193%

0.6479%

0.8262%

3.3419%

2.6913%

4.1785%

0.9480%

1.5738%

0.5911%

0.9027%

0.7324%

1.9382%

0.2647%

0.6080%

0.6557%

1.5081%


















ElderTrust



HMG/Courtland Properties Inc.

CV REIT Inc.



Master Realty Properties Inc.

1.3390%

1.3230%

1.3127%

1.2792%

1.2618%

1.1784%

1.1456%

0.8895%

0.8648%

0.8094%

0.7906%

0.6932%

0.6861%

0.4857%

0.4853%

0.3190%

0.3170%

0.2484%

0.2237%

0.0002%

0.0001%

0.0000%

0.0000%

0.0000%

0.0000%

0.0186%

0.0192%

0.0172%

0.0225%

0.0159%

0.0166%

0.0225%

0.0079%

0.0075%

0.0066%

0.0063%

0.0072%

0.0047%

0.0024%

0.0024%

0.0010%

0.0010%

0.0006%

0.0005%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0168%

0.0088%

0.0172%

0.0081%

0.0159%

0.0058%

0.0067%

0.0079%

0.0075%

0.0034%

0.0063%

0.0022%

0.0047%

0.0024%

0.0024%

0.0010%

0.0010%

0.0006%

0.0005%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

Office Sector The MSA Level

Index 2

0.0187%

0.0282%

0.0139%

0.0158%

0.0166%

0.0103%

0.0090%

0.0097%

0.0080%

0.0081%

0.0072%

0.0059%

0.0078%

0.0066%

0.0068%

0.0039%

0.0047%

0.0027%

0.0022%

0.0021%

0.0024%

0.0013%

0.0016%

0.0011%

0.0013%

0.0012%

0.0010%

0.0007%

0.0008%

0.0008%

0.0006%

0.0006%

0.0006%

0.0007%

0.0006%

0.0005%

0.0004%

0.0004%

0.0004%

0.0006%

0.0005%

0.0004%

0.0004%

0.0003%

0.7595%

0.7406%

0.6246%

0.6024%

0.8631%

0.6248%

0.5223%

0.3801%

0.2866%

0.2926%

0.3932%

0.3011%

0.2164%

0.2296%

0.1511%

0.0417%

0.0488%

0.0567%

0.0296%

0.0315%

0.0616%

0.0296%

0.0426%

Index 1

0.5230%

0.4652%

0.4557%

0.3992%

0.3638%

0.3421%

0.3274%

0.3220%

0.3087%

0.3016%

0.2636%

0.2526%

0.2519%

0.2467%

0.2467%

0.2402%

0.2363%

0.2170%

0.2143%

0.2112%

0.2067%

0.2055%

1.3676%

1.3201%

1.1772%

1.0910%

1.0531%

0.9364%

0.8993%

0.8938%

0.8928%

0.8594%

0.8319%

0.7478%

0.7237%

0.6494%

0.6455%

0.6244%

0.6199%

7.6825%

7.5953%

7.2907%

7.1351%

6.6196%

6.6094%

6.4003%

6.0572%

5.3533%

5.3403%

5.1501%

4.9713%

4.2319%

3.8418%

2.7953%

1.9833%

1.9064%

1.8772%

1.7184%

1.6822%

1.6203%

1.5827%

1.4478%

0.2054%

0.1993%

0.1941%

0.1891%

0.1717%

REIT







Rouse Company


JP Realty Inc.

Arden Realty Inc.




Koger Equity Inc.



Kilroy Realty Corp.









Washington REIT









Weeks Corp.









Public Storage Inc.




MGI Properties







Saul Centers Inc.






American General Hospitality





Meridian Point Realty Trust 8


Index 3

0.0110%

0.0108%

0.0038%

0.0053%

0.0187%

0.0066%

0.0139%

0.0100%

0.0052%

0.0075%

0.0075%

0.0035%

0.0080%

0.0035%

0.0024%

0.0046%

0.0043%

0.0011%

0.0005%

0.1195%

0.2038%

0.4229%

0.2253%

0.3405%

0.3868%

0.1862%

0.2877%

0.2866%

0.1300%

0.0678%

0.1245%

0.0208%

0.0540%

0.0187%

0.0389%

0.0092%

0.0107%

0.0263%

0.0021%

0.0011%

0.0027%

0.0022%

0.0021%

0.0014%

0.0009%

0.0005%

0.0010%

0.0003%

0.0005%

0.0006%

0.0007%

0.0003%

0.0005%

0.0006%

0.0006%

0.0006%

0.0002%

0.0002%

0.0005%

0.0004%

0.0004%

0.0004%

0.0001%

0.0001%

0.0002%

0.0004%

0.0003%






CV REIT Inc.












ElderTrust






0.1576%

0.1560%

0.1460%

0.1345%

0.1336%

0.1335%

0.1220%

0.1188%

0.1174%

0.0772%

0.0741%

0.0709%

0.0648%

0.0641%

0.0534%

0.0504%

0.0440%

0.0431%

0.0425%

0.0359%

0.0326%

0.0166%

0.0068%

0.0002%

0.0003%

0.0003%

0.0002%

0.0002%

0.0002%

0.0002%

0.0001%

0.0001%

0.0001%

0.0001%

0.0001%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0001%

0.0001%

0.0001%

0.0002%

0.0002%

0.0002%

0.0001%

0.0001%

0.0001%

0.0001%

0.0001%

0.0001%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

0.0000%

APPENDIX 8

REGRESSION DATABASES

Residential Data

0

0

-

0

C,, ~ n-

~.

'0 C~

REIT

Amli Residential

Apartment Investment &

Managment Co.


Avalon Properties, Inc.

Bay Apartment Communities

BRE Properties

Camden Property

Equity Residential Properties Trust

Essex Property Trust


Irvine Apartments Communities


Mid-America Apartment Comm.

Post Properties, Inc.




Walden Residential

10.6 $ 871.7 73%

13.7 $ 1,873.4 173%

9.1

14.9

15.2

14.2

13.1

16.6

12.2

10.7

15.4

10

9.9

13.3

14.5

10.7

10.1

11.7

$ 769.2

$2,148.0

$ 1,144.5

$ 1,790.4

$ 1,547.4

$ 7,023.4

$ 827.4

$ 1,292.2

$2,110.3

$ 1,754.7

$ 796.6

$2,545.3

$ 3,508.6

$1,117.2

$2,673.4

$ 1,649.9

145%

55%

87%

47%

76%

122%

106%

55%

49%

145%

84%

164%

81%

69%

76%

69%

45.0%

47.7%

53.1%

43.4%

23.9%

30.2%

31.1%

35.6%

22.7%

45.6%

33.4%

37.7%

44.5%

42.3%

35.1%

43.3%

52.8%

48.7%

1

0

1

1

77% 0

66% 0

67%

75%

72%

77%

76%

82%

72%

76%

83%

69%

59%

68%

70%

66%

65%

75%

C-,

0-

5.15

8.58

5.34

2.61

9.26

16.91

16.66

0.61

14.41

2.54

15.64

13.78

5.16

5.16

4.33

9.49

8.18

12.01

0

0

40

R.

0-CD

o

~:

~,

0.0490845070

0.1043541972

0.1077389985

0.0696800033

0.0476037104

0.0501309232

0.0417407553

0.0365943321

0.0462804685

0.0289526300

0.0702625785

0.0372783207

0.0763804917

0.0648413848

0.0478489903

0.0322142929

0.0300625261

0.0702625785

95%

74%

70%

73%

96%

97%

92%

72%

84%

72%

100%

73%

33%

96%

81%

73%

54%

92%

0.0080 0.0001 0.0000

0.0071 0.0001 0.0000

0.0184

0.0064

0.0103

0.0080

0.0269

0.0195

0.0060

0.0114

0.0411

0.0131

0.0086

0.0228

0.0145

0.0068

0.0124

0.0179

0.0004

0.0001

0.0002

0.0001

0.0013

0.0007

0.0000

0.0001

0.0018

0.0002

0.0001

0.0007

0.0003

0.0001

0.0002

0.0004

0.0017

0.0000

0.0000

0.0003

0.0000

0.0000

0.0000

0.0001

0.0002

0.0000

0.0000

0.0000

0.0003

0.0001

0.0000

0.0001

Retail Data

00

L0

F 'n

REIII

0

Alexander Haagen Properties 15.1 11.20 $ 802.0 28%

Bumham Pacific

Chelsea GCA Realty

11.2 10.80 $ 953.0 232%

CBL & Associates Properties 11.2 11.70 $ 1,470.2 64%

10.2 11.30 $ 1,060.0 250%

Cousins Properties, Inc. 15.2 14.90 $ 1,308.1 58%

Crown American Realty Trust 8.1 9.40 $ 870.4 72%

Developers Diversified 11.8 11.70 $ 1,810.4 62%

Excel Realty Trust


10.5 10.90 $ 992.5 73%

Federal Realty Trust 12.4 12.80 $ 1,741.1 48%

General Growth Properties Inc. 12.9 13.50 $ 3,677.6 61%

9.6 10.10 $ 1,150.0 55%

IRT Property Co. 11.0 10.90 $ 583.0 68%

JDN Realty Corporation 15.9 13.00 $ 879.1 90%

JP Realty 11.2 12.20 $ 813.8 45%

Kimco Realty

Macerich

13.7 12.70 $ 2,200.7 43%

12.5 12.90 $ 2,220.7 57%

Mills Corporation

New Plan Realty

13 12.70 $ 1,716.6 81%

14.2 14.10 $ 2,039.3 63%

Price REIT 12.3 11.70 $ 827.1 45%

Prime Retail 8.3 10.70 $ 1,043.0 61%


Simon DeBartolo Group

13.4 12.00 $ 1,005.5 111%

12.7 13.20 $12,083.1 75%

Tanger Factory Outlet 9.3 9.00 $ 585.3 72%

Urban Shopping Centers 12.3 11.70 $ 1,961.4 150%

Weingarten

Western Invesment

13.4 13.00 $ 1,680.3 28%

10.7 11.90 $ 421.5 32%

Westfield America, Inc. 12.4 11.20 $ 2,528.0 33%

34.4%

43.3%

42.0%

27.1%

37.0%

46.7%

35.4%

51.3%

39.1%

48.7%

30.2%

29.6%

46.1%

39.1%

58.1%

45.1%

32.0%

27.5%

61.2%

34.3%

24.5%

44.2%

46.5%

54.2%

30.5%

27.9%

34.8%

94%

72%

78%

79%

69%

66%

71%

77%

79%

61%

80%

78%

72%

79%

66%

75%

91%

77%

77%

80%

79%

71%

63%

70%

74%

82%

88%

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

23.40 0.0869356963

4.90 0.0528634361

32.50 0.0806374454

15.80 0.0546083519

25.73 0.2572394659

13.00 0.0659059059

2.13 0.0964538178

11.04 0.0688230009

7.05 0.0931983385

5.06 0.0176679834

9.89 0.0759735159

2.71 0.0596530920

8.10 0.1042784970

16.78 0.0827032954

18.08 0.0748395440

2.75 0.0158205091

13.32 0.0912234480

6.07 0.0164879813

7.11 0.0830266095

24.40 0.0681492109

5.7 0.1125242619

32.70 0.0280923115

32.10 0.1015129638

63.93 0.0313009571

14.00 0.0524794450

4.22 0.0523837552

86.84 0.0215829743

0.0302 0.0017 0.0002 0.0129 0.0002 0.0001

0.0336 0.0034 0.0001 0.0145 0.0002 0.0002

0.2341 0.0791 0.0023 0.0328 0.0019 0.0002

0.1018 0.0320 0.0023 0.0033 0.0000 0.0000

0.0746 0.0093 0.0036 0.0092 0.0001 0.0000

0.3101 0.1232 0.0066 0.0325 0.0013 0.0007

0.2094 0.1264 0.0013 0.0167 0.0004 0.0000

0.1109 0.0539 0.0014 0.0066 0.0001 0.0000

0.0451 0.0032 0.0003 0.0140 0.0003 0.0001

0.1642 0.0558 0.0007 0.0268 0.0009 0.0001

0.2368 0.0971 0.0028 0.0265 0.0015 0.0002

0.1175 0.0391 0.0011 0.0128 0.0002 0.0000

0.1793 0.0678 0.0021 0.0146 0.0003 0.0001

0.2948 0.1414 0.0079 0.1093 0.0187 0.0044

0.0410 0.0055 0.0001 0.0138 0.0002 0.0000

0.2157 0.0860 0.0023 0.0596 0.0113 0.0008

0.0643 0.0069 0.0009 0.0081 0.0001 0.0000

0.1404 0.0554 0.0006 0.0103 0.0001 0.0000

0.0199 0.0008 0.0000 0.0058 0.0000 0.0000

0.2163 0.1116 0.0047 0.0052 0.0000 0.0000

0.1065 0.0593 0.0013 0.0108 0.0001 0.0001

0.1943 0.0627 0.0007 0.0698 0.0081 0.0007

0.3016 0.1639 0.0092 0.0029 0.0000 0.0000

0.0637 0.0061 0.0012 0.0235 0.0008 0.0004

0.0918 0.0379 0.0012 0.0325 0.0012 0.0007

0.1314 0.0670 0.0022 0.0082 0.0001 0.0000

0.0959 0.0157 0.0013 0.0366 0.0019 0.0004

Office Data

0

CL

C)

0

0

CAD

0-

0

CD

0- 0

~.D

~0

~ CD~

CD

N

N g

-Z

(01

~C ~

C oll D'C

Arden Realty

Boston Properties

Cali Realty

Corporation

CarrAmerica Realty

Cornerstone Properties

Cousins Properties,

Inc.

Crescent Real Estate

Duke Realty

Equity Office

Properties

Health & Retirement

Property

Highwoods Property

Trust

JP Realty

Kilroy Realty Corp


Prentiss Properties

Reckson Associates

Realty

Security Capital

Industrial

Spieker Properties

TriNet Corporate

Realty Trust

Vornado

Washington REIT

Weeks Corporation

12.9 14.20 $ 1,248.3 206%

16.8 15.20 $ 4,141.5 128%

14.5 15.40 $ 2,676.1 89%

12.7 13.00 $ 3,401.6 88%

12.5 13.30 $ 2,723.6 44%

15.2 14.90 $ 1,308.1 58%

17.5 15.30 $ 6,499.7 119%

15.1 14.60 $ 3,094.2 43%

15.8 16.20 $ 12,728.3 111%

12.6 11.70 $ 2,885.2 50%

12.3 12.40 $ 3,007.2 91%

11.2

13.5

11.5

14

12

12.20

13.20

11.40

10.80

15.10

$

15.9 16.50 $

813.8 45%

$ 1,146.2 116%

$ 2,660.9 114%

$ 1,695.9 107%

$ 1,660.4 71%

15.5 16.40 $ 4,656.2 90%

10.2 10.80 $ 1,511.2

32.3 17.70

13.6 14.30

13.6 13.50

$

$

$

4,667.7 55%

43%

3,768.8 108%

813.7 45%

1,185.4 69%

14.0%

32.2%

22.2%

42.0%

32.5%

27.5%

26.3%

30.5%

31.4%

20%

34.8%

29.1%

36.6%

33.6%

31.8%

12.6%

24.9%

35.9%

1

70%

63%

65%

71%

83%

1

1

1

69% 0

47%

65%

56%

0 89%

31.4% 1 1 63% 1

79%

69%

69%

63%

65%

23.4% 0 0 64% 0

36.2% 1 1 77% 0

41.3% 1 0 72% 0

60%

81%

69%

1

1

1

0

1

0

0

0

0

0 9.19 0.0586365242

0 27.25 0.0662755937

0 20.43 0.1081481177

82.40%

75.69%

80.07%

100.00%

91.64%

91.71%

0.1965

0.0812

0.1729

0.1003

0.0096

0.0470

0.0073

0.0014

0.0026

0.05340

0.01682

0.06609

0.00293

0.00031

0.00625

0.00130

0.00011

0.00387

0 4.30 0.0997663013

0 1.36 0.0701401671

0 25.73 0.2572394659

99.86%

77.53%

94.38%

100.00%

96.57%

94.38%

0.1709

0.1060

0.1328

0.0621

0.0168

0.0197

0.0066

0.0022

0.0064

0.02795

0.01583

0.06057

0.00151

0.00030

0.00380

0.00019

0.00004

0.00288

1 16.84 0.0347827094

0 11.22 0.1303029094

0 5.91 0.0792348995

90.60%

98.80%

91.98%

0 7.38 0.2397386910

93.92%

100.00%

90.29%

0.2599

0.2110

0.1543

0.1081

0.0673

0.0443

0.0167

0.0059

0.0012

0.07135

0.07595

0.04232

0.00602

0.00741

0.00216

0.00225

0.00204

0.00021

95.13% 100.00% 0.0324 0.0016 0.0005 0.01053 0.00017 0.00005

0 8.87 0.0568623969

0 16.78 0.0827032954

0 11.84 0.0713107543

0 3.55 0.0620976286

0 5.35 0.0296916071

0 14.93 0.0778945832

56.36% 61.40% 0.2402 0.1005 0.0065 0.07682 0.00760 0.00119

94.15%

53.96%

74.48%

92.83%

91.94%

94.15%

100.00%

77.31%

97.89%

100.00%

0.4078

0.1417

0.2133

0.0777

0.2138

0.1899

0.0293

0.0769

0.0139

0.0666

0.0894

0.0062

0.0157

0.0008

0.0095

0.05353

0.01906

0.04971

0.01448

0.06620

0.00287

0.00049

0.00301

0.00043

0.00863

0.00287

0.00009

0.00124

0.00005

0.00341

0 1.19 0.0634026066 100.00% 100.00% 0.0193 0.0004 0.0004

0.00465 0.00002 0.00002

0

0

8.62 0.0649999291

3.30 0.0565409831

83.93%

70.82%

25.40 0.1359724613

1.00 0.0836398838

22.22 0.0670130370

94.91%

100.00%

39.64%

89.61% 0.2400 0.0905 0.0083

79.93% 0.0802 0.0179 0.0008

0.05150 0.00393 0.00068

0.01620 0.00062 0.00011

100.00%

100.00%

64.44%

0.0939

0.0538

0.0196

0.0143

0.0041

0.0005

0.0045

0.0007

0.0001

0.01983

0.01177

0.00748

0.00042

0.00014

0.00006

0.00039

0.00014

0.00005

APPENDIX 9

REGRESSION RESULTS

Intercept

Size

Variables

Liquidity

Capital Structure

Asset Risk

UPREIT

Payout


Cost Economies

Market Weight

Market Share 1

R Square

Observations

Residential MSA Level Regression Results

Index 1

Coefficients

16.39321

0.00109

-1.11159

-7.05104

0.49953

0.19434

-10.62982

-0.02704

39.33943

4.24016

-25.46609

t Stat

4.03530

4.51935

-0.98838

-1.34121

0.44502

0.28975

-1.50294

-0.32625

2.44876

2.09045

-0.71826

Index 2

Coefficients

16.75284

0.00106

-1.14289

-7.17811

0.43345

0.18542

-10.92981

-0.02618

38.49994

4.05994

-349.81428

t Stat

4.10870

4.42639

-0.99504

-1.31757

0.38171

0.26420

-1.51962

-0.30882

2.33574

1.99611

-0.49726

0.91218

0.90892

18

Index 3

Coefficients

16.94546

0.00103

-1.14720

-6.95892

0.40540

0.15662

-11.15171

-0.02847

38.35384

3.96855

-285.24925

t Stat

4.14031

4.49891

-0.98422

-1.26790

0.35434

0.21688

-1.53728

-0.32116

2.19135

1.94663

-0.32902

0.90714

18

Intercept

Variables

Size

Liquidity

Capital Structure

Asset Risk

UPREIT

Payout


Cost Economies

Market Share County 1

R Square

Observations

Retail County Level Regression Results

Index 1

Coefficients

15.25715

0.00029

-0.58560

-5.25193

0.32937

-0.44496

-0.28732

-0.00128

6.82088

-10.53887

t Stat

3.07581

1.69095

-0.78287

-1.21621

0.36054

-0.46955

-0.05646

-0.06682

0.86267

-2.17516

Index 2

Coefficients

15.81742

0.00024

-0.67748

-6.07542

0.50091

-0.42076

-0.72630

-0.00593

5.98211

-22.07063t Stat

3.42038

1.45987

-0.96711

-1.48763

0.57907

-0.48284

-0.15289

-0.32547

0.79938

-2.71563

0.53315

27

0.58378

27

Index 3

Coefficients

15.98621

0.00015

-0.48423

-6.61413

0.00504

0.02927

-1.96938

0.01565

14.20945

-498.25920

t Stat

3.41344

0.82813

-0.71514

-1.60579

0.00576

0.03052

-0.39563

0.82869

1.80740

-2.67630

0.58012

27

Intercept

Variables

Size

Liquidity

Capital Structure

Asset Risk

UPREIT

Payout


Cost Economies

Market Share State 1

R Square

Observations

Retail State Level Regression Results

Index

Coefficients

10.10452

0.00033

0.20393

-5.46704

0.27781

-1.45206

4.22857

0.00137

8.15382

4.92507

t Stat

2.04400

1.61257

0.25182

-1.12125

0.26528

-1.48671

0.80711

0.06357

0.90373

0.25674

Index 2

Coefficients

10.16852

0.00034

0.14875

-5.37974

0.31002

-1.41698

4.22186

0.00148

7.86827

7.51938

t Stat

2.05608

1.70498

0.18625

-1.09573

0.29432

-1.40953

0.80276

0.06802

0.87477

0.07290

0.40552

27

0.40340

27

Index 3

Coefficients

10.19782

0.00034

0.11107

-5.46411

0.33595

-1.36613

4.25145

0.00132

7.73622

-47.29739

t Stat

2.05945

1.75862

0.14171

-1.11486

0.32360

-1.38198

0.81019

0.06105

0.86568

-0.10057

0.40357

27

Intercept

Variables

Size

Liquidity

Capital Structure

Asset Risk

UPREIT

Payout

Diversity


Cost Economies

Paper Clip

Market Weight

Market Share Sub 1

R Square

Observations

Office TWR Level Regression Results

Index 1

Coefficients

14.70668

0.00035

-0.21381

-10.98468

1.12804

1.71583

-3.92638

-0.93161

0.10008

-6.99397

0.70898

4.33048

-9.54315

t Stat

2.66937

2.36672

-0.19652

-1.73631

1.43984

1.27857

-0.72672

-1.10836

1.80529

-0.81427

0.38189

1.89524

-2.22090

Index 2

Coefficients

13.86717

0.00035

0.04580

-12.19521

1.22177

1.82279

-2.96478

-1.19989

0.09864

-9.44817

0.92920

4.51933

-21.37667

t Stat

2.80427

2.68140

0.04684

-2.17018

1.75204

1.56415

-0.61299

-1.55685

1.99641

-1.23734

0.55998

2.23335

-2.87545

0.82147

21

0.85808

21

Index 3

Coefficients

11.57475

0.00037

-0.50896

-11.32983

1.15662

0.98974

-0.02138

-1.05598

0.14555

-14.36560

0.44538

4.91077

-50.04157

t Stat

2.14572

2.74215

-0.50362

-1.93362

1.59208

0.91331

-0.00406

-1.34033

2.65913

-1.74445

0.26385

2.25427

-2.64774

0.84619

21

Intercept

Variables

Size

Liquidity

Capital Structure

Asset Risk

UPREIT

Payout

Diversity


Cost Economies

Paper Clip

Market Weight

Market Share MSA 1

R Square

Observations

Office MSA Level Regression Results

Index 1

Coefficients

17.42031

0.00038

-0.48831

-11.55716

1.07101

0.84622

-8.78433

-0.98407

0.08049

-3.24295

-0.08657

4.81966

-18.00048

t Stat

2.48924

2.29178

-0.40563

-1.59679

1.22420

0.56574

-1.31141

-1.03985

1.32134

-0.30344

-0.04285

1.43784

-0.95964

Index 2

Coefficients

17.56805

0.00038

-0.73884

-11.82736

1.08231

0.68527

-8.82692

-0.83809

0.08206

-4.75321

-0.28950

4.86343

-135.62557

tStat

2.34001

2.15824

-0.56435

-1.58133

1.21500

0.45762

-1.24207

-0.89314

1.32167

-0.45537

-0.14329

1.42279

-0.79890

0.78141

21

0.77426

21

Index 3

Coefficients

17.48200

0.00029

-0.99507

-11.27550

0.43261

0.87983

-9.64077

-1.03959

0.11821

-2.53383

0.40417

5.98995

-619.02414

t Stat

2.85751

1.66093

-0.83841

-1.69785

0.45734

0.69768

-1.58983

-1.19273

2.07184

-0.27075

0.21001

1.94482

-1.53341

0.81162

21

BIBLIOGRAPHY

References

Case, Karl E. and Fair, Ray C. Principles ofMicroeconomics. New Jersey: Prentice-Hall,

Inc., 1996).

DiPasquale, Denise and Wheaton, William C. Urban Economics and Real Estate

Markets. New Jersey: Prentice-Hall, Inc., 1996.

Epley, Donald R. and Banks, Warren. "National Real Estate Firms and Antitrust:

Avoiding Liability" Real Estate Law Journal (Winter 1984), p. 243-260, v12n3.

"Executive Summary of the Antitrust Laws." Kaye, Scholer's Antitrust Deskbook (1992), p.3-19.

Gaughan, Patrick A. Mergers, Acquisitions, and Corporate Restructurings. New York:

John Wiley & Sons, Inc., 1996.

Glick, Mark A.; Cameron, Duncan J.; and Mangum, David G. "Importing the Merger

Guidelines market test in section 2 cases: potential benefits and limitations."

Antitrust Bulletin (Spring 1997), p. 121-150, v42nl.

Greenspan, Michael A. "Geographic Markets in Bank Mergers: A Potpourri of Issues."

North Carolina Banking Institute (April 1998).

Hemel, Eric I. and Dawson, Virginia M. "Comparative Valuation of REITs." Merrill

Lynch, Pierce, Fenner & Smith Limited (April 1998).

Landes, William M. and Posner, Richard A. "Market Power in Antitrust Cases." Harvard

Law Review (March 1981), p. 937-996, v94n5.

Lenzner, Robert and Shook, Carrie. "The unstoppable REIT juggernaut." Forbes, Inc.

(December 1997), p.

6 8

.

Migdal, Nelson F. and Goodrich, Jennifer A. "Ruling that Monopoly is Unlikely in

Lodging Industry has Helped Spark Boom in Acquisitions." Legal Times, October

20, 1997, p. s48.

Ordover, Janusz A.; Sykes, Alan 0.; and Willig, Robert D. "Herfindahl Concentration,

Rivalry, and Mergers." Harvard Law Review (June 1982), p. 1857-1874, v95n8.

Pindyck, Robert S. and Rubinfeld, Daniel L. Microeconomics. New Jersey: Prentice-

Hall, Inc., 1998.

Schmalensee, Richard. "Another Look at Market Power." Harvard Law Review (June

1982), p. 1789-1816, v95n8.

Tirole, Jean. The Theory ofIndustrial Organization. Cambridge: Massachusetts Institute of Technology, 1993.

Woolley, Suzanne; Morris, Kathleen; Melcher, Richard A.; and Anderson Forest,

Stephanie. "The New World of Real Estate." BusinessWeek (September 1997), p.78-87.

Internet References

"16 CFR 802.5." Lexis Law Publishing's Code of Federal Regulations <http://web.lexis- nexis. com/univers...>

"1992 Horizontal Merger Guidelines [with April 8, 1997, Revisions to Section 4 on

Efficiencies]." <http://wwwftc.gove>

"FTC Document 16 CFR Parts 801 and 802 Premerger Notification; Reporting and

Waiting Period Requirements." <http://www.ftc.gov/opa/hsrfrn.htm>

"FTC Enacts New Exemptions from Merger Regulations; Plan will Ease Regulatory

Burden on Business." <http://www.ftc.gov/opa/9603/hsramdt.htm>

Edwards, Tony M. and Campell Jaffe, Margaret. "Document on Demand Document

#605 Article on Antitrust Notification Rules: New Regulations Exempt REITs from Antitrust Notification." NAREIT ONLINE

Data References

Hemel, Eric I. and Dawson, Virginia M. "Comparative Valuation of REITs." Merrill

Lynch, Pierce, Fenner & Smith Limited (April 1998).

Whyte, Gregory; Bloom, Steve; Harmeyer, Fred; and Jones, Andrew. "U.S. and the

Americas Investment Research." Morgan Stanley Dean Witter & Co. (April 1998).

Data References Interviews

Barringer, Robert C. Director. AEW Capital Management, L.P., Boston, MA

Ostrower, Matthew. Equity Analyst. Boston Financial, Boston, MA.

Wheaton, William. Principal. Torto Wheaton Research, Boston, MA.

REITs & Market Power:

LIBRARIES

Related documents

Products

Support

REITs &amp; Market Power:

LIBRARIES

Related documents

Add this document to collection(s)

Add this document to saved

Suggest us how to improve StudyLib

REITs & Market Power: