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88%of metros registering home price gains

48 out of 152 metros reporting home price

gains of 10% or more

Reasons to be OptimisticABOUT COMMERCIAL REAL ESTATE IN 201410

Fiscal Drag Fades

Household Debt Service Ratio lowest rate in 30 yearsat 10%

Corporate profits are near record levels of $1.2T

Better Balance Sheets

Only 4% probabilityof a severe recession in 2014,

according to Moody's Analytics

Risk of Recession Low

2013 180,000jobs created per month

2014 198,000jobs per month are forecasted

4 Job Growth

5"Recent economic indicators have increased our confidence that the

job market gains will continue, Ben Bernanke, December 2013.

In January, the central bank will reduce its monthly bond buying program

from $85Bto $75B

Fed Likes What It Sees

Consumer Confidence Index (CCI)

January 2013 (after fiscal cliff debate): 58.4

October 2013 (during government shutdown): 72.4

6 More Confident Consumers

Venture capitalists invested $7.7Bin U.S. tech companies in Q3 2013

By 2017 it is projected that there will be over 3 billion

mobile-connected devices,2 billion more than exist today

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7 GDP Getting Stronger

Tech Cycle Still Has Legs

America's Energy Boom

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#Housing Engine Just Getting Started

Housing materials account for

15% of warehouse inventories

A rise in the CCI is typically

followed by a decline in office

vacancy rates two quarters later

Cassidy Turley U.S. Research

2101 L Street, NW, Ste. 700, Washington, DC 20037

www.cassidyturley.com/research

Source: National Association of Realtors

Source: U.S. Energy Information Administration

Source: PriceWaterhouseCoopers

Source: National Association of Business Economics

Every 50 bps increase in GDP generates

7.2 msf of additional demand for office space

Consensus Forecast for 2014

5 Most OptimisticEconomists

5 Most PessimisticEconomists

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1413

14

1%

0%

2%

3%

4%

5%

Source: The Conference Board

Source: U.S. Bureau of Labor Statistics

Source: Federal Reserve

The Bipartisan Budget Act of 2013 signed into law on December 26, 2013

The deal funds the government through fall 2015, removing a layer

of fiscal uncertaintyweighing on the U.S. economy for 3 years

Job growth

increases demand

for apartment units2013

2014

13 14 15

ImportedCrude Oil

U.S. ProducedCrude Oil

Regular-GradeAverage Price/Gallon

07 08 09 10 11 12

5

6

7

8

9

10

11

3.40

3.50

3.60

3.70

3.80

3.90

4.00

MillionBarrels

8.1M

7.5M

5.2M

10M

$3.39

$3.46$3.50