GREATER BOSTON MA / SOUTHERN NEW HAMPSHIRE

MARKETBEAT SERIES YEAR-END 2006

GREATER BOSTON MA / SOUTHERN NEW HAMPSHIRE

Research CUSHMAN & WAKEFIELD OF MASSACHUSETTS, INC. 125 Summer Street, Suite 1500 Boston, MA 02110 617-330-6966

TA B L E O F C O N T E N T S 2 Area Map 3 Greater Boston Office Market Overview

Bruce E. Mosler President and CEO

5 Greater Boston Office Submarket Review 8 Greater Boston Office Market Highlights

Tony Marano CEO, Americas

9 Greater Boston Office Market Statistics

Thomas L. Collins Executive Managing Director, New England Region

10 Southern New Hampshire Office Market Overview 11 Southern New Hampshire Office Market Highlights

Robert E. Griffin, Jr. President, New England Region

12 Southern New Hampshire Office Market Statistics

Maria T. Sicola Executive Managing Director

13 Investment Market Overview

Rick Cleveland Director

15 Industrial Market Overview 17 Industrial Submarket Review

RESEARCH/MARKETBEAT The award-winning MarketBeat Series profiles real estate conditions in strategic markets throughout the world. Cushman & Wakefield Research offers diverse products and services including real estate forecasts, market and submarket studies, retail research, demographic and economic trend analyses, and peer group studies. For more information on Cushman & Wakefield and our publications and services, refer to our website. http://www.cushmanwakefield.com

AWARD RECIPIENTS 2000, 2001, 2002, 2003, 2005, 2006

20 Industrial Market Highlights 21 Industrial Market Statistics 22 Multi-Family Market Overview & Highlights 23 Retail Market Overview & Highlights 24 Glossary/Major Market Definitions

AWARD RECIPIENTS 1999, 2001, 2002

Greater Boston MA/Southern New Hampshire MarketBeat Series $325.00 Report prepared by Cushman & Wakefield, Inc. January 2007 Copyright © 2007 Cushman & Wakefield, Inc. All rights reserved. The data compiled in the Greater Boston MA/Southern New Hampshire MarketBeat Series is the legal property of Cushman & Wakefield, Inc. Reproduction or dissemination of the information contained herein is strictly prohibited without the expressed written consent of Cushman & Wakefield, Inc.This report contains information, including information available to the public, which has been relied upon by Cushman & Wakefield, Inc. on the assumption that it is accurate and complete without independent verification by Cushman & Wakefield, Inc. Cushman & Wakefield, Inc. accepts no responsibility if this should prove to be inaccurate or incomplete. No warranty or representation, express or implied, is made by Cushman & Wakefield, Inc. as to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions and changes in market conditions.

G R E AT E R B O S TO N M A / S O. N E W H A M P S H I R E A R E A M A P erri k R. mac

STRAFFORD Toll

3

103

31

Rochester

106

89

Somersworth 16 Dover

4

14CConcord

10

93 114

CHESHIRE

12

Connec ticut R.

12

Keene

9

HILLSBOROUGH HILLSBOROUGH 12

101

101

10 10

Ne w

To ll 3

7

495

110

R.

9

9

Toll

9

4

Reading Wakefield

Burlington

Waltham Newton

95

8

NORFOLK

HAMPDEN Woonsocket 395

PROVIDENCE

44

102

WINDHAM R. Thame s

85

NEW LONDON 32 2

395

165 138

165 82

MIDDLESEX

6 44

Cape Cod Bay

BRISTOL

495

24

195

114

3

140

Fall River iver ve

BRISTOL

Warwick

95

KENT 102

WASHINGTON

4

11

24

138

Barnstable 195

6

1

Rhode

2

PLYMOUTH P H

North Attleboro 9 10 Attleboro Taunton Pawtucket

Cranston

117 102

295

10

Brockton 495

Providence

Scituate Res. 14

6

Manchester

146

3

6

1

Vernon

A t l a n t i c O c e a n

NORFOLK

Franklin 95

TOLLAND

Peabody Salem

Weymouth

Milford

Connecticut

Gloucester

Massachusetts Bay 1 Boston 1 Quincy

3

140

20

84

128

128

2 MaldenLynn 5 Somerville S

7

90

6

20

5

4

Worcester W

Gloucester

Danvers Beverly

Arlington rlin ing 27

Marlborough

122

93

MIDDLESEX ES SE S EX2

Leominster

Leominster

140

Quabbin Res.

3

.

8

WORCESTER

202

d

95

ck R

2A

Massachusetts

83

Lawrence

rima

13

Massac husetts

95

Methuen

Fitchburg

Gardner

495

1 ESSEX Methuen ESSEX Lawrence North Andover

Fitchburg

Gardner

Newburyport

Haverhill

Haverhill 495

93

Mer

13

2

Amesbury

16

111

Nashua 11

202

202

Conn ecticut

3

101

H am pshire

2

95

Derry

Derry

Londonderry

101

12

12

125

ROCKINGHAM

Merrimack

CHESHIRE

1

125

Manchester

Keene 9

15 Portsmouth

13 ll

9

To

91

To ll

MERRIMACK

Buzzards Bay

New Bedford

28

BARNSTABLE 28

NEWPORT

Nantucket Sound

Newport

Co

Island

3

OFFICE SUBMARKETS

INDUSTRIAL SUBMARKETS

1

Central Business District/ South End/Medical Center

9

1-495 West

1

Inner Suburbs

7

128 West

10

1-495 South

2

Northwest Corridor

8

128 South

2

Cambridge

11

Nashua

3

North Shore

9

1-495 South

3

Inner Suburbs

12

Bedford

4

1-495 West

10

Route 3 South

4

128 North

13

Manchester

5

MetroWest

11

Fall River/New Bedford

5

128 West

14

Concord

6

Worcester

6

128 South

15

Portsmouth

7

MetroWest

16

Salem

8

1-495 North

2

C U S H M A N & WA K E F I E L D M A R K E T B E AT Y E A R - E N D 2 0 0 6

G R E AT E R B O S TO N O F F I C E M A R K E T OV E RV I E W The greater Boston office market enjoyed one of its most active years in recent memory. Leasing activity was solid across both the Central Business District (CBD) and non-CBD, overall absorption was positive and overall vacancy declined. Aided by strong tenant demand from the region’s key industries, particularly life sciences, financial services and legal services, the greater Boston office market absorbed over 3.8 million square feet (msf) in 2006, the highest amount since 2000. The market has also seen overall vacancy decline 5.3 percentage points in the last 24 months to average 14.6%.

$26.00

20.0%

$25.40

18.0%

$24.80

16.0%

$24.20

14.0%

$23.60

12.0%

$23.00

10.0% 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 Vacancy Rate

Overall employment grew during the year and the economy remained healthy despite weakness from the housing sector and continued losses in manufacturing jobs (down 0.9% in 2006). Statewide unemployment (as of November 2006) was 5.0% according to the Bureau of Labor Statistics (BLS) while unemployment for Boston-Cambridge-Quincy was 4.7%, unchanged from the prior year. Job growth in Massachusetts lagged the nation during the year, coming in at approximately 0.7%. However, the State has generated over 24,000 non-agricultural jobs over the last 12 months with solid gains coming in financial activities (up 2.0%), professional and business services (up 1.8%) and education and health services (up 1.6%). While the region is still struggling to overcome its high costs and slower than average growth, investors have placed a significant amount of capital in greater Boston in anticipation of still further improvement in real estate fundamentals. In 2006, Boston set a record for total transaction value realized, with over $9.3 billion in office transactions being consummated between January and

In 2006, Boston’s CBD was marked by solid, albeit measured demand from both existing tenants and new tenants to the market. Asking rents, particularly those in the class A market, have risen significantly year-over-year and for the first time since the second quarter of 2001 overall vacancy is under 10%. This recovery has been driven largely by growth from businesses across all industries, including financial services, legal services and technology, as well as the lack of new class A space available in the market. Unlike past years, however, tenant demand in the CBD is originating from small to medium-sized firms seeking incremental growth rather than large firms with significant requirements.The considerable amount of capital markets activity has also impacted the market. In 2006, approximately $7.2 billion of sale transactions were completed in the CBD, a record for total transaction volume. Looking ahead to 2007, the biggest factor driving the CBD will be the sale of Equity Office Property Trust, who currently owns 20% of the class A and B Boston CBD Rental vs. Vacancy Rates OverallOverall Rental vs.Vacancy Rates

(psf/yr)

(psf/yr)

While there is approximately 870,000 square feet (sf) of construction in the pipeline, this represents only 0.5% of total inventory. Given the market trends, we do expect the construction pipeline to increase in the next twelve months; however, until new supply is delivered vacancy in the near-term is expected to tighten in many markets with tenants facing upward pressure on asking rents.

B O S TO N C B D

Greater Boston OverallOverall Rental vs.Vacancy Rates Rental vs. Vacancy Rate

Rental Rate

December. This high investor interest has helped make the region one of the most attractive metropolitan areas for real estate investment in the United States.

$40.00

15.0%

$32.00

12.0%

$24.00

9.0%

$16.00

6.0%

$8.00

3.0%

$0.00

2004 Rental Rate

2005

2006

2007

2008

0.0%

Vacancy Rate

G R E AT E R B O S TO N M A / S O U T H E R N N E W H A M P S H I R E

3

G R E AT E R B O S TO N O F F I C E M A R K E T OV E RV I E W office market.The acquisition of Equity Office Property Trust by The Blackstone Group signifies a shift in ownership from REIT landlords, who are driven by property occupancy, long hold periods and stable dividends, to private owners that are focused almost exclusively on building short-term capital appreciation through income.With private investors focused on achieving their underwritten pro-forma’s, asking rents at premier class A and B properties should rise considerably over the next 12-18 months. y

(psf/yr)

Boston Non-CBD Overall Rental vs.Vacancy Rates $25.00

25.0%

B O S TO N N O N - C B D

$20.00

20.0%

$15.00

15.0%

$10.00

10.0%

$5.00

5.0%

Boston’s non-CBD markets also enjoyed an active 2006. Leasing across Cambridge, the Inner Suburbs and Suburban markets totaled 11,366,729 sf, up approximately 30% from the 8.7 msf recorded in 2005. Activity and absorption were strongest in 128 West, the north markets of 128 North/495 North, and Kendall Square/E. Cambridge. Overall vacancy across the non-CBD fell to 17.1%, down from 20.3% posted at the end of 2005. Suburban markets continued to chip away at sublease space during the year as vacancy on a direct basis fell 2.2 percentage points to 14.4% at the end of 2006.The average asking rent on direct space held steady at approximately $21.75 psf, although many markets did experience increases to asking rents. It was also an active year for investment across most suburban markets and this ownership change should push rents higher in the coming months, albeit to a lesser degree than in the CBD.

$0.00

2004 Rental Rate

2005

2006

2007

2008

0.0%

Vacancy Rate

Overall absorption across Boston’s CBD was 1.57 msf in 2006, significantly higher than the 375,811 sf recorded in 2005. Year-overyear, overall vacancy decreased 3.0 percentage points to 9.6% and direct vacancy at the end of 2006 was 8.0%, down 2.1 percentage points from year-end 2005. Of the six submarkets that comprise the CBD, the Financial District experienced the most activity during the year. Driven by significant leasing of 2.8 msf and positive overall absorption of 1.5 msf, overall vacancy fell 5.1 percentage points to 8.8% between year-end 2005 and 2006. In the Financial District’s class A market, overall vacancy dropped 5.5 percentage points to 6.2%, the lowest since the second quarter of 2001. The CBD’s second largest submarket Back Bay also enjoyed solid leasing in 2006. However, several sublease vacancies negatively affected the year’s overall absorption. In 2006, Proctor & Gamble put out almost 320,000 sf for sublease related to unneeded space acquired in their purchase of Gillette.This contributed to negative overall absorption of 127,706 sf for the Back Bay during the year. Nevertheless, the combination of strong market-wide leasing and institutional ownership among most class A and B buildings in the CBD has set the stage for further tightening in 2007. As an indicator

4

of what is to come, the average asking rent on direct space over the last twelve months has risen approximately 12% in the Financial District to $40.66 per square foot (psf) and 7.1% in the Back Bay to $37.49 psf. Moreover, the average class A asking rent in the Financial District has risen almost 20% in the last year to $48.75 psf, with premier buildings across the entire CBD commanding an almost 30% premium over the average. Coinciding with rising market rents, tenant improvement allowances have decreased in most A and B buildings and free rent has become difficult to negotiate.These dynamics suggest that until new supply is delivered, the market will favor landlords and owners over the next three years.

For the fourth year in a row, Cambridge recorded positive overall absorption. For the twelve months ending December 31, 2006, Cambridge posted overall absorption of 833,707 sf, concentrated primarily in Kendall Square/E. Cambridge, which recorded 803,108 sf of absorption. Overall vacancy in Cambridge declined significantly, coming in at 10.4%, 6.4 percentage points lower than at the end of 2005.There was strong investor interest in Cambridge (see investment section) and several large leases were signed during the year, most notably Schering-Plough signing for 120,875 sf at 320 Bent Street. 128 West experienced the highest leasing activity of any submarket in both the non-CBD and CBD, with 2.9 msf of leases signed between January and June 2006. Overall absorption in 128 West was positive 714,156 sf and overall vacancy dropped to 12.1% at the end of 2006 from 16.7% in the comparable period last year.Vacancy in 495 North declined 5.6 percentage points to 23.9% during the year on positive overall absorption of 571,350 sf. Further west and south, markets witnessed less activity and modest negative absorption.

C U S H M A N & WA K E F I E L D M A R K E T B E AT Y E A R - E N D 2 0 0 6

G R E AT E R B O S TO N OFFICE SUBMARKET REVIEW CAMBRIDGE Overall Absorption vs. Vacancy Rates

• A number of high-profile investment sale transactions occurred in Cambridge, including the 1.2-msf life science complex,Technology Square @ MIT, purchased by Alexandria Real Estate Equities for $600 million. Boston Properties purchased the 430,000-sf office complex, 4 & 5 Cambridge Center, for approximately $186.0 million.

0.5

25.0%

0.4

20.0%

0.3

15.0%

0.2

10.0%

0.1

5.0%

(msf)

• Microbia leased 100,000 sf at 301 Binney Street and renewed for 45,000 sf at 320 Bent Street. 301 Binney Street is currently under construction with Microbia due to occupy the space in 2008.

• Vacancy continued to decline due to strong overall absorption.The only construction completion for 2006 was Seven Cambridge Center which delivered fully leased to The Broad Institute in April of 2006. Year-over-year overall vacancy dropped from 16.8% at the end of 2005 to 10.4% in 2006.

0.0

4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 Absorption

0.0%

Vacancy Rate

I N N E R S U BU R B S Overall Absorption vs. Vacancy Rates

• Vacancy continued to fall to a new low of 9.8%, the lowest rate since 2000. Cambridge Health Alliance signed the most significant lease of the year taking 76,000 sf at 195 Canal Street in Malden.

0.4

20.0%

0.3

15.0%

0.2

10.0%

0.1

5.0%

0.0

0.0%

(msf)

• Demand remains strong as the market recorded its fifth year of positive overall absorption. Overall absorption for 2006 was 103,777 sf up from 75,393 sf in 2005.

• The Laboratory market is growing in the Inner Suburbs and vacancy is tightening.The most notable lab transaction of the year was at Building 96 Charlestown, where Mytogen secured 24,000 sf.

-0.1

4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 Absorption

Vacancy Rate

1 2 8 N O RT H Overall Absorption vs. Vacancy Rates

• Year-to-date positive overall absorption of 341,543 sf in 2006 contributed to a decrease in the overall vacancy rate from 21.1% in 2005 to 19.1% in 2006.

• Behringer Harvard Funds purchased a two property portfolio including 5 & 15 Wayside Road, Burlington Office Park II for approximately $82.3 million.The buildings’ major tenants included Nokia, Cognos Corporation and Intergen.

28.0%

0.6

21.0%

0.4

14.0%

0.2

7.0%

0.0

0.0%

(msf)

• Direct asking rental rates increased in 128 North from $19.00 psf at the end of 2005 to $20.99 psf at year-end 2006.

0.8

-0.2

4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 Absorption

Vacancy Rate

G R E AT E R B O S TO N M A / S O U T H E R N N E W H A M P S H I R E

5

G R E AT E R B O S TO N OFFICE SUBMARKET REVIEW 128 WEST Overall Absorption vs. Vacancy Rates

• There were some significant large life science leases signed at the newly renovated Reservoir Woods. Major tenants include Perkin Elmer located in the north wing and Fresenius occupying 210,000 sf in the south wing. Other deals signed in 128 West included United Health Group at Bay Colony Corporate Center I.

0.6

24.0%

0.4

16.0%

0.2

8.0%

0.0

0.0%

(msf)

• The 128 West submarket had a strong year, posting over 700,000 sf of overall absorption compared with negative absorption for the same period last year.

-0.2

• As forecasts predict rents rising to the range of $40.00 psf for class A product, landlords have initiated speculative development. Two notable plans include 850 Winter Street in Waltham, being developed by Davis Marcus Partners and 77 Fourth Avenue in Waltham, being developed by Boston Properties.

-0.4

4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 Absorption

Vacancy Rate

128 SOUTH Overall Absorption vs. Vacancy Rates

• Campanelli Companies purchased 350 Granite Street in Braintree from Verizon for $10.3 million.Verizon remained in approximately 40,000 sf, with 125,477 sf vacant.

0.8

24.0%

0.6

18.0%

0.4

12.0%

0.2

6.0%

0.0

0.0%

(msf)

• Leasing activity increased to 979,916 sf with Blue Cross Blue Shield renewing 78,457 sf at 108 Myrtle Street in Quincy and expanding into an additional 89,000 sf to occupy the building.The Registry of Motor Vehicles leased 67,000 sf at 25 Newport Avenue and The Shaw Group leased 55,000 sf at 600 Technology Center Drive.

• There were several large availabilities added in 2006, including 100,407 sf of sublease space at 500 River Ridge Road and 50,400 sf at 1099 Hingham Street in Rockland.

-0.2

4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 Absorption

Vacancy Rate

M E T ROW E S T Overall Absorption vs. Vacancy Rates

• Given there are no existing large blocks of space available, tenants are enduring growing pains as they attempt expansion by a variety of means. Genzyme is recycling old industrial buildings and creating new lab space; Mathworks is proposing the development of a new office building supported by structured parking at its Apple Hill site; and Bose has had to look to Westborough to accommodate its square foot requirement. • HRPT, owner of 100 Pennsylvania Avenue in Framingham, took back approximately 78,000 sf for its own use, further reducing available inventory.

6

0.6

24.0%

0.4

16.0%

0.2

8.0%

0.0

0.0%

(msf)

• Year-to-date overall absorption was negative 138,224 sf, down from 225,417 sf. Vacancy improved from 15.2% in 2005 to 10.0% at year-end 2006. Direct average asking rents increased in 2006 to $20.08 psf from $19.98 psf in 2005.

-0.2 -0.4

C U S H M A N & WA K E F I E L D M A R K E T B E AT Y E A R - E N D 2 0 0 6

4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 Absorption

Vacancy Rate

G R E AT E R B O S TO N OFFICE SUBMARKET REVIEW I - 4 9 5 N O RT H Overall Absorption vs. Vacancy Rates

• The largest lease of the year was Motorola’s 188,640-sf lease at 900 Chelmsford Street – Cross Point Towers. Other notable transactions include: IBM’s renewal at 165,000 sf at 5 Technology Drive, Raytheon executing two leases at 600 and 880 Technology Park Drive totaling 185,565 sf, and Sonus Networks leasing 130,000 sf at 7 Technology Park Drive.

0.6

36.0%

0.4

24.0%

0.2

12.0%

0.0

0.0%

(msf)

• Positive year-to-date absorption of 571,358 sf in 2006 lead to a 5.6 percentage point decrease in overall vacancy from 29.5% in 2005 to 23.9% in 2006.

-0.2

• Despite a decline in overall vacancy, direct asking rental rates decreased a modest $0.31 psf from an average of $17.62 psf in 2005 to $17.31 psf in 2006.

-0.4

4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 Absorption

Vacancy Rate

I-495 WEST Overall Absorption vs. Vacancy Rates

• Year-over-year overall vacancy in I- 495 West remained stable at 27%.

• Normandy Real Estate Partners purchased a multi-building portfolio, which included 100-700 Nickerson Road, 800-900 Nickerson Road, and 313 Boston Post Road from Glenborough Realty Trust for a total of $92.5 million.

0.6

33.0%

0.4

22.0%

0.2

11.0%

0.0

0.0%

(msf)

• The largest transactions for the year included PNC’s 305,000 sf renewal at 4400 Computer Drive, Bose’s expansion of 179,246 sf to 9 Technology Drive in Westborough, and Iron Mountain’s lease of 80,000 sf at 120 Turnpike Road in Southborough.

-0.2 -0.4

4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 Absorption

Vacancy Rate

I-495 SOUTH Overall Absorption vs. Vacancy Rates

• Vacancy remained stable on a year-over-year basis in the I- 495 South office market. Absorption of 58,486 sf contributed to a decrease in overall vacancy by a modest 0.7 percentage points to 13.9% in 2006.

• OneBeacon Insurance moved out of One Constitution Way in Foxboro, leaving 208,848 sf available on a direct basis.The company also consolidated its Downtown Boston office into a new site at 150 Royall Street in Canton.

24.0%

0.2

16.0%

0.1

8.0%

0.0

0.0%

(msf)

• Direct asking rents for all classes increased in 2006 from $16.68 psf in 2005 to $17.31 psf in 2006.

0.3

-0.1 -0.2

4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 Absorption

Vacancy Rate

G R E AT E R B O S TO N M A / S O U T H E R N N E W H A M P S H I R E

7

G R E AT E R B O S TO N OFFICE MARKET HIGHLIGHTS SIGNIFICANT 2006 NEW LEASE TRANSACTIONS Building 900 Chelmsford Street Two International Place Nine Technology Drive 95 Hayden Avenue Seven Technology Park Drive 300 Apollo Drive

Submarket I- 495 North Financial District I- 495 West I-128 West I- 495 North I- 495 North

Tenant Motorola Eaton Vance Bose Vistaprint Sonus Networks Aspect Software

Square Feet 188,640 229,527 179,246 163,365 130,000 128,000

Building Class A A B A A B

Square Feet 1,589,533 1,196,044 1,120,557 1,056,000 1,017,168 1,017,000

Purchase Price $1,293,000,000 $600,000,000 $514,000,000 $481,500,000 $423,000,000 $880,000,000

Major Tenant Square Feet The Broad Institute 231,028 Prestige Executive Search Corporation 22,500

Completion Date 4/06 1/06

SIGNIFICANT 2006 SALE TRANSACTIONS Building 200 Clarendon Street Technology Square at MIT One Federal Street 75-81 Arlington & 10 St. James One Beacon Street One Lincoln Street

Submarket Back Bay Cambridge Financial District Back Bay Financial District Financial District

Buyer Broadway Real Estate Partners Alexandria Real Estate Equities, Inc. Tishman Speyer Liberty Mutual Beacon Capital Partners Fortis

SIGNIFICANT 2006 CONSTRUCTION COMPLETIONS Building Seven Cambridge Center One Maple Street

Submarket Kendall Square I- 495 West

SIGNIFICANT PROJECTS UNDER CONSTRUCTION Building 301 Binney Street One Harbor Street 77 Fourth Avenue One Hampshire Street, Phase II

Submarket Kendall Square S. Station/Fort Point 128 West Kendall Square

Major Tenant Square Feet Microbia 420,000 Boston Freight Terminals 209,234 N/A 204,500 Schlumberger Technology Corporation 188,000

Completion Date 7/08 3/07 1/08 1/07

SIGNIFICANT LEASE AVAILABILITIES Building 800 Boylston 19 Presidential Way 26 Forest Street 100 Brickstone Square Two Tech Drive Two Elizabeth Drive

8

Submarket Back Bay Woburn Marlborough Andover Andover Chelmsford

Direct/ Sublease Sublease Sublease Direct Direct Direct Sublease

C U S H M A N & WA K E F I E L D M A R K E T B E AT Y E A R - E N D 2 0 0 6

Available Square Feet 322,000 128,395 125,000 113,916 106,000 105,934

Building Class A A B B B B

Possession Date Immediate Immediate 7/07 Immediate 5/07 TBD

G R E AT E R B O S TO N O F F I C E M A R K E T S TAT I S T I C S

Market/Submarket

Inventory

Financial District

No. of Bldgs.

Overall Direct Vacancy Vacancy Rate Rate

YTD Leasing Activity

YTD Under Construction Construction Completions

YTD Direct Weighted Overall Avg. Class A Absorption Rental Rate*

29,683,521

138

8.8%

8.1%

2,883,449

0

0

1,549,719

$48.75

Government Center/ North Station

3,824,932

45

8.1%

7.6%

264,513

0

0

108,311

$35.42

Midtown

2,126,253

26

5.7%

5.5%

70,102

0

0

(19,470)

N/A

Back Bay

13,398,994

69

10.4%

5.3%

997,091

0

0

(127,706)

$39.73

7,588,613

72

11.5%

10.9%

744,022

123,689

0

65,916

$38.12

2,040,568

20

16.9%

16.7%

164,894

0

0

(2,952)

$41.07

58,662,881

370

9.6%

8.0%

5,124,071

123,689

0

1,573,818

$45.97

South Station/ Fort Point Channel Charlestown CBD Total South End/Medical Center

1,305,513

13

8.1%

8.1%

91,808

0

0

82,084

N/A

South End/Medical Center

1,305,513

13

8.1%

8.1%

91,808

0

0

82,084

N/A

Alewife/Fresh Pond

2,153,599

28

14.4%

12.7%

230,312

0

0

(8,547)

$29.28

Mass. Avenue/Harvard Square 2,162,992

36

4.1%

3.2%

141,427

0

0

39,146

$38.29

Kendall Square/ East Cambridge

11,701,578

92

10.8%

7.9%

1,426,080

608,000

231,028

803,108

$37.91

Cambridge Total

16,018,169

156

10.4%

7.9%

1,797,819

608,000

231,028

833,707

$36.02

1,816,159

21

11.4%

10.1%

232,466

0

0

45,217

$23.39

Somerville/Medford/Malden Allston/Brighton/Watertown

3,139,402

40

8.9%

7.7%

162,374

0

0

58,560

$40.06

Inner Suburbs Total

4,955,561

61

9.8%

8.6%

394,840

0

0

103,777

$31.96

20,797,181

245

19.1%

16.9%

1,820,026

0

0

341,543

$22.98

128 North 128 West

21,212,572

271

12.1%

10.2%

2,920,338

142,663

0

714,156

$33.02

128 South

12,086,514

161

17.3%

15.4%

979,916

0

0

(310,387)

$21.67

MetroWest

4,522,585

55

10.0%

9.2%

264,895

0

0

(138,224)

$23.03

I-495 North

16,187,498

158

23.9%

19.5%

1,668,562

0

0

571,358

$19.78

I-495 West

14,497,195

169

27.1%

22.0%

1,268,508

0

22,500

(29,077)

$19.27

I-495 South

2,843,486

48

13.9%

10.9%

160,017

0

0

58,486

$20.38

98,408,105

1,181

18.2%

15.4%

9,568,910

142,663

22,500

1,393,716

$24.32

Non-CBD Total

114,426,274

1,337

17.1%

14.4% 11,366,729

750,663

253,528

2,227,423

$26.29

TOTAL

173,089,155

1,707

14.6%

12.2% 16,490,800

874,352

253,528

3,801,241

$30.53

Suburban Total

*Rental rates reflect $psf/year

G R E AT E R B O S TO N M A / S O U T H E R N N E W H A M P S H I R E

9

SOUTHERN NEW HAMPSHIRE O F F I C E M A R K E T OV E RV I E W The Southern New Hampshire economy continued to perform extremely well in 2006. Unemployment as of November was just 3.5%, according to the BLS, unchanged from the same period a year earlier. Between November 2005 and November 2006, the New Hampshire economy generated 9,000 non-agricultural jobs, representing 1.4% employment growth, the highest of the six New England States. Private employment across the state (i.e.: nonagricultural employment less government employment) was up 1.6% over the same period with the Portsmouth and Manchester metropolitan areas producing job growth exceeding 2.0%. During the year, New Hampshire had gains in several of its leading industries, including Trade,Transportation and Utilities (up 2,600 jobs), Education and Health Services (up 2,900 jobs) and Professional and Business Services (up 1,000 jobs). However, growth in these industries were offset by continued declines in manufacturing, the State’s third largest labor force.Total manufacturing employment decreased 3.0% in 2006 and is down 5.2% (4,200 jobs) since 2003. Looking ahead, it is expected that New Hampshire will continue with low unemployment, however, the region will need to continue to attract businesses that will contribute to economic growth.

(psf/yr)

Southern New Hampshire OverallOverall Rental vs.Vacancy Rental vs. Vacancy RateRates $20.00

20.0%

$16.00

17.5%

$12.00

15.0%

$8.00

12.5%

$4.00

10.0%

$0.00

2004 Rental Rate

2005

2006

2007

2008

7.5%

Vacancy Rate

The New Hampshire real estate market was active in 2006.Total leasing activity was 940,143 sf, up over 93% from the 590,466 sf recorded in 2005. Overall absorption across the six submarkets was 249,336 sf, significantly higher than the 55,549 sf recorded in the prior

10

year. Overall vacancy fell 3.2 percentage points to 15.6% by year-end, with vacancy decreasing in all but one submarket, Manchester, where it remained unchanged from 2005 at approximately 12.5%.The average overall rent in Southern New Hampshire rose approximately 5.9% during the year to average $16.39 psf. The class A market performed extremely well in 2006 with Bedford and Portsmouth most notably, recording strong leasing and absorption. Class A activity comprised over 78.0% of total leasing and over 70% of overall absorption during the year. Class A leasing activity and overall absorption in 2006 were 735,692 sf and 176,668 sf respectively. Overall class A absorption in Portsmouth was 51,361 sf in 2006, which contributed to vacancy of 11.7%, 3.3 percentage points lower than year-end 2005. Overall absorption in Bedford was 70,835 sf which helped to drop vacancy in that submarket from 27.9% at year-end 2005 to 21.7% at the end of 2006.The average rent on class A space rose over 6.8% to $18.17 psf at year-end, with the highest increase occurring in Concord, which saw average overall rents climb $3.02 psf to $16.49 psf. There were no significant construction completions in Southern New Hampshire during the year. However, approximately 201,156 sf, representing 1.8% of total inventory, is currently under construction. At 11 South Main Street in Concord, 102,000 sf of class A office space is under construction and scheduled for delivery in the first half of 2007.This new building will contain five contiguous floors in the heart of downtown Concord. The Southern New Hampshire office market should remain healthy over the next 12-24 months. Continued activity, however, such as was seen in 2006 will be dependent upon the region’s ability to draw prospective tenants from Boston’s northern markets of 128 North and 495 North. If the health of these northern suburbs is a leading indicator, then 2007 should prove to be another solid year for Southern New Hampshire. Combined, Boston’s 495 North and 128 North markets posted overall absorption of 912,901 sf in 2006 and saw overall vacancy decline into the mid-teens. Nevertheless, the region must also continue to make itself attractive for business investment, particularly for smaller companies who find the State’s lower cost alternatives and higher quality of life attractive.

C U S H M A N & WA K E F I E L D M A R K E T B E AT Y E A R - E N D 2 0 0 6

SOUTHERN NEW HAMPSHIRE OFFICE MARKET HIGHLIGHTS SIGNIFICANT 2006 NEW LEASE TRANSACTIONS Building 11 Continental Boulevard Eight Commerce Drive 25 Constitution Drive 100 Main Street 10 Tara Boulevard

Submarket Nashua Bedford Bedford Dover Nashua

Tenant Compuware Cordiant Confidential AT&T Tiburon

Square Feet 60,009 32,306 31,114 30,000 17,381

Building Class A A A B A

Square Feet 328,610 113,688 78,750 59,000 47,655

Purchase Price $25,500,000 $12,500,000 2,700,000 $7,070,000 $3,150,000

Square Feet

Completion Date

Square Feet 102,000 65,460 33,696

Completion Date 1/07 4/07 4/07

Building Class A A A B A A

Possession Date Immediate Immediate Immediate Immediate Immediate 6/07

SIGNIFICANT 2006 SALE TRANSACTIONS Building 1000 Elm Street 40 Continental Boulevard 35E Industrial Way 61 Spit Brook Road Two Commerce Park Drive

Submarket Manchester Nashua Portsmouth Nashua Bedford

Buyer Brady Sullivan Properties Ashforth Paradigm Capital Advisors Nashua VP LLC Stonewater Partners Brady Sullivan Properties

SIGNIFICANT 2006 CONSTRUCTION COMPLETIONS Building N/A

Submarket

Major Tenant

SIGNIFICANT PROJECTS UNDER CONSTRUCTION Building 11 South Main Street 25 Pelham Road 11 Keewaydin Drive

Submarket Concord Salem Salem

Major Tenant N/A N/A N/A

SIGNIFICANT LEASE AVAILABILITIES Building Four Executive Park Drive 43 Constitution Drive 15 Constitution Drive 100 Main Street 690 Southwood Drive One Executive Park Drive

Submarket Bedford Bedford Bedford Dover Nashua Bedford

Direct/ Sublease Direct Direct Direct Sublease Direct Direct

Available Square Feet 60,000 30,000 28,477 20,118 19,764 19,084

G R E AT E R B O S TO N M A / S O U T H E R N N E W H A M P S H I R E

11

SOUTHERN NEW HAMPSHIRE O F F I C E M A R K E T S TAT I S T I C S

Market/Submarket

Nashua

Inventory

No. of Bldgs.

Overall Vacancy Rate

Direct Vacancy Rate

YTD Leasing Activity

2,510,330

48

25.1%

24.3%

235,355

Under Construction

0

YTD Construction Completions

YTD Direct Weighted Overall Avg. Class A Absorption Rental Rate*

0

24,559

$16.24

Manchester

3,876,052

52

12.5%

11.5%

198,419

0

0

(2,820)

$18.55

Bedford

1,133,936

27

20.7%

20.4%

217,573

0

0

72,184

$18.88

Portsmouth

2,428,904

51

11.5%

7.2%

172,071

0

0

123,028

$19.52

898,636

25

11.2%

11.2%

71,202

102,000

0

16,159

$16.49

Concord Salem TOTAL

347,268

13

4.0%

4.0%

45,523

99,156

0

16,226

$25.00

11,195,126

216

15.6%

14.1%

940,143

201,156

0

249,336

$17.87

* Rental rates reflect $psf/year

12

C U S H M A N & WA K E F I E L D M A R K E T B E AT Y E A R - E N D 2 0 0 6

I N V E S T M E N T M A R K E T OV E RV I E W 2006 represented the single most active year for commercial real estate investment in greater Boston. Nearly 200 transactions closed accounting for an aggregate deal volume of over $12.3 billion, more than double the record of $5.6 billion set in 2005. The abundance of capital continued to produce record pricing across all asset classes and investor confidence in the region rose as leasing fundamentals improved, most noticeably in the office sector. Improved fundamentals, combined with substantial liquidity in the capital markets, resulted in record-setting transactions, with several assets trading twice in a twelve month period. Total transaction value of the 25 largest sales of 2006 was $8.2 billion, more than double the previous high mark of $3.8 billion set in 2004. Private capital and opportunity funds were the most active buyers in 2006, accounting for 53.3% of investor activity. The average sale price of the top 25 transactions was approximately $330 million, nearly twice as high as the year before. Sale prices of the top 25 transactions during the year ranged in price from $82.5 million to nearly $1.3 billion.

B O S TO N O F F I C E CBD office product was the asset class of choice among investors in 2006. Premier Financial District and Back Bay office properties accounted for approximately 64.4% of the total dollar volume within the top 25 transactions. As part of a national $3.3 billion

portfolio acquisition, Broadway Partners purchased several assets from Beacon Capital Partners, including the John Hancock Tower, 200 Berkeley Street and 197 Clarendon Street, along with an associated parking garage and 501 Boylston Street. Broadway subsequently sold 200 Berkeley and 197 Clarendon to John Hancock Financial Services for $454 million ($386 psf) and 501 Boylston to TIAA-CREF for $378 million ($610 psf). In two separate transactions with JAMESTOWN, Tishman Speyer purchased One Federal for $514 million ($458 psf) and acquired the remaining 76% of 125 High Street that it didn’t already own for approximately $555 million.While user purchases of office buildings are rare in the CBD, Liberty Mutual acquired 10 St. James Avenue, the building adjacent to its headquarters, for $481.5 million ($584 psf).

CAMBRIDGE OFFICE Internationally recognized as a center for the world’s largest companies, as well as start-ups on the cutting edge of technological innovation, Cambridge and Kendall Square, specifically, were a focal point for investment in 2006. During the year, Boston Properties acquired 4 & 5 Cambridge Center (and an associated parking garage) for $186 million ($346 psf and $41,500 per space) and INVESCO purchased 55 Cambridge Parkway, which enjoys direct frontage on the Charles River for $112.7 million ($408 psf).

The Top 25 Investment Sales by Property Type Top 25 by property

$10

15

65.0%

$280

$8

12

52.0%

$210

$6

9

39.0%

$140

$4

6

26.0%

$70

$2

3

13.0%

$0

2000

2001

Average Sale Price

2002

2003

Total Value

2004

2005

2006

(Number of Sales)

$350

(billions)

(millions)

The Top 25 Rental vs. Vacancy Rate Boston Area Overall Investment Sale Transactions

$0

0

Boston Office

Cambridge Development Lab Office Site

Number of Sales

Source: Cushman & Wakefield Capital Markets

Multi-Family

Retail

Suburban Office

0.0%

Percent of Total

Source: Cushman & Wakefield Capital Markets

G R E AT E R B O S TO N M A / S O U T H E R N N E W H A M P S H I R E

13

I N V E S T M E N T M A R K E T OV E RV I E W LIFE SCIENCE

S U BU R B A N O F F I C E

Leased primarily to life science tenants, who require extensive build-out’s to support ongoing research and development needs, these properties found favor with investors in 2006. While previously considered higher-risk purchases than traditional office buildings – due to their low liquidity and concerns about tenant credit worthiness – real estate investors have become more comfortable with acquiring these assets in core markets such as Boston and Cambridge. Moreover, recent changes in the industry, including the support of multinational pharmaceutical companies, as well as increased demand for prescription drugs and services, have made life science companies desirable tenants for investors, owners and developers.

The suburban office market was active in 2006. Saracen Properties and Rockpoint Group sold a five-property portfolio to Normandy Real Estate Partners for $140.2 million ($175 psf). Immediately after closing, Normandy sold Stony Brook Office Park in Waltham to ING Clarion Partners for $55.0 million. One of the most notable suburban transactions was a private fund controlled by Eaton Vance Management, which acquires the Campus at Marlborough for $135 million ($254 psf) from BPG, who purchased the former campus for $57.8 million in 2002. The highest price paid for a suburban office property during the year belongs to Behringer Harvard Funds, who purchased the Nokia regional headquarters at 5 & 15 Wayside Road in Burlington, for $82.3 million ($305 psf).

In the second half of 2006, Lyme Properties, one of the region’s premier life science property developers, sold Center for Life Science | Boston in the Longwood Medical Area to BioMed Realty Trust, a life-science focused REIT. Purchased while the still under construction, BioMed anticipates spending approximately $730 million to acquire and complete construction on the property. Alexandria Real Estate Equities, another active buyer of life-science assets, spent approximately $600 million to acquire Technology Square @ MIT and more than $95 million for Life Science Square, both located in East Cambridge. And a joint venture between The Beal Companies and Rockwood Capital plans to make extensive renovations to One Kendall Square, an asset they purchased together for $210.5 million to take advantage of unmet demand for office/lab space in Kendall Square.

Buyer Type of the Top 25 Investment Sales 2.1%

5.9% 5.2%

OUTLOOK CBD office towers and core suburban assets should continue to attract institutional capital and life science assets should also find additional favor as new product is introduced. There are currently several significant sales in the pipeline for 2007, including 75-101 Federal Street, 399 Boylston Street, both in the CBD, and Waltham Corporate Center in 128 West. While CBD assets with vacancy are hard to find in the current environment, high-quality suburban office properties with vacancies should lure opportunistic buyers seeking to create value in the area’s surging leasing environment. As noted on page 3, one of the most significant events that will affect the investment market in 2007 will be the sale of Equity Office Properties. It is anticipated that The Blackstone Group will sell a portion of EOP’s Boston portfolio upon acquisition.The sale and subsequent re-marketing of approximately 25% of the Boston office market should generate considerable investment interest. This, coupled with strong market fundamentals, should mean that investors will actively be watching and acquiring office property in Boston in 2007.

11.5% 22.1%

53.3%

Developer REIT

Overseas Investor Private Equality

Pension Fund/Advisor User

Source: Cushman & Wakefield Capital Markets

14

C U S H M A N & WA K E F I E L D M A R K E T B E AT Y E A R - E N D 2 0 0 6

I N D U S T R I A L M A R K E T OV E RV I E W On the whole, the greater Boston industrial market performed well in 2006. Overall vacancy declined across all property types and leasing was up over 50% from 2005. Absorption was positive across most submarkets; however, average rents have increased only marginally year-over-year. Maritime uses in and around Boston harbor continue to be a major driver of the region’s industrial economy. The Harbor is an ideal location for industrial development and activity due to its easy access to rail, bridges and major highways. The region’s industrial uses vary widely and range from food production, transportation, logistics, cross-docking, airport operations and maritime expansion, along with traditional warehouse and flex/R&D. However, new development, while attractive, is difficult because of the high costs of suitable land. Development is occurring in some areas that are 25 to 30 miles outside of Boston due to the lower costs of entry, however, for wide-scale new development to occur, investors will need to see higher rents than what is now being received (the average industrial rent was $6.90 psf in 2006), and users need to ensure that distribution volume will be high.

$10.00

20.0%

$8.00

16.0%

$6.00

12.0%

$4.00

8.0%

$2.00

4.0%

$0.00

2002 Rental Rate

2003

2004

2005

2006

While the region is not as strong in industrial distribution as other metropolitan areas in the mid-atlantic, south-east and mid-western United States, Boston’s close proximity to New York, its harbor, and access to many connecting roads should allow it to always carry a strong industrial presence.

WA R E H O U S E / D I S T R I BU T I O N Overall vacancy in greater Boston’s warehouse/distribution sector decreased 2.2 percentage points in 2006 and is down almost 4.0 percentage points over the last two years. Boston’s northern industrial markets, the Northwest Corridor and the North Shore, saw the most positive activity in 2006. Leasing in these submarkets for 2006 totaled a combined 1.38 msf and overall absorption amounted to 713,459 sf. Overall vacancy in the North Shore declined 5.8 percentage points during 2006 on over 530,000 sf of positive overall absorption. Of note is that the North Shore absorbed over 5.4% of its total inventory during the year.The warehouse/distribution market in 495 South had a robust 2006, recording approximately 2.2 msf of leasing activity and 614,601 sf of positive overall absorption.Warehouse/distribution rents were flat in 2006, coming in at an average of $5.93 psf.

Boston Suburban Warehouse/Distribution Rental vs. Vacancy Rate OverallOverall Rental vs.Vacancy Rates

0.0%

Vacancy Rate

Overall vacancy in Boston’s industrial market decreased 1.5percentage points to 13.8% in 2006.This represents a 3.5percentage point drop over the last twenty four months as market-wide vacancy in 2004 was over 17.0%. Approximately 11.5 msf of industrial leases were signed during 2006 and marketwide absorption was approximately 2.2 msf, up over 120% from the 986,622 sf recorded in 2005.Vacancy was most improved in the warehouse/distribution sector and in the South, which recorded a 2.6 percentage point decline in overall vacancy.

(psf/yr)

(psf/yr)

Boston Suburban Industrial OverallOverall Rental vs.Vacancy Rates Rental vs. Vacancy Rate

There is currently 1.1 msf of industrial property under construction in greater Boston, with approximately 75% being built-to-suit. Notable completions include a BJ’s warehouse/distribution center in Uxbridge (617,621 sf). Greenstreet Capital Partners is building 137,697-sf facility at Liberty and Union Industrial Park in Taunton, which is scheduled for delivery in the first half of 2007.

$7.50

20.0%

$6.00

16.0%

$4.50

12.0%

$3.00

8.0%

$1.50

4.0%

$0.00

2002 Rental Rate

2003

2004

2005

2006

0.0%

Vacancy Rate

G R E AT E R B O S TO N M A / S O U T H E R N N E W H A M P S H I R E

15

I N D U S T R I A L M A R K E T OV E RV I E W

M A N U FAC T U R I N G The declines in vacancy across the manufacturing sector were more modest. Overall vacancy fell approximately 0.9 percentage points in 2006 to 11.4%. The West markets enjoyed the most active year, while activity in the North and South was relatively flat. On the whole, manufacturing overall absorption was positive 675,035 sf, less than 1.0% of total inventory in the market. Leasing in the West was the strongest, climbing to just over 1.0 msf with Worcester comprising over half of the yearly activity. The average asking rent on direct space increased $0.41 psf, (6.9%) during 2006 with the highest rents seen in the North markets. While Fall River historically is not an active manufacturing market, it did have one of the most significant psf sale transactions of the year with Condyne buying 81 Commerce Drive from Hatch Technology. The 600,000-sf manufacturing building sold for $23.0 million. New construction activity in the manufacturing sector across greater Boston is low, which is not surprising given that the northeast continues to lose manufacturing jobs to other lower cost regions around the globe.

FLEX The flex market enjoyed lower, albeit nominal, vacancy in 2006. Overall vacancy declined 1.2 percentage points to end the year at 16.5%. Leasing was heaviest in the North markets, and in particular, the Northwest corridor, which enjoyed over 1.3 msf of activity in 2006.While market-wide absorption was slightly negative, the negative 365,593 sf of overall absorption in 128 West offset the positive absorption recorded across most other markets. Cushman & Wakefield recorded 25 Flex building sales in 2006, with the two most notable being Campanelli Business Park and the Boston Tech Center. Major projects under construction include the Eisai Research Institute of Boston, a 150,000-sf center scheduled to be delivered as owner-occupied in the first quarter of 2007.

Boston Suburban Flex OverallOverall Rental vs.Vacancy Rates Rental vs. Vacancy Rate

(psf/yr)

There were thirty-four investment sales of warehouse/distribution industrial properties in 2006 totaling over 3.3 msf. The most notable was AEW Capital Management’s acquisition of the Methuen Industrial Center at 14 Aegean Drive in Methuen.The pension fund advisor acquired the 234,254-sf distribution center for $18.3 million, or $78.33 psf.The warehouse/distribution market also had one of the largest user sales on a per square foot basis, as Iron Mountain Information Management purchased 402,188 sf at 175 Bearfoot Road in Northborough.

$15.00

25.0%

$12.00

20.0%

$9.00

15.0%

$6.00

10.0%

$3.00

5.0%

$0.00

(psf/yr)

Boston Suburban Manufacturing OverallOverall Rental vs.Vacancy Rates Rental vs. Vacancy Rate $7.50

15.0%

$6.00

12.0%

$4.50

9.0%

$3.00

6.0%

$1.50

3.0%

$0.00

2002 Rental Rate

16

2003

2004

2005

2006

0.0%

Vacancy Rate

C U S H M A N & WA K E F I E L D M A R K E T B E AT Y E A R - E N D 2 0 0 6

2002 Rental Rate

2003

2004

Vacancy Rate

2005

2006

0.0%

INDUSTRIAL SUBMARKET REVIEW N O RT H W E S T C O R R I D O R Overall Absorption vs. Vacancy Rates

• The Northwest Corridor posted another consecutive year of strong leasing activity. Out of 2.3 msf of leasing across all industrial property types, 1.3 msf was leased in the flex market.

(msf)

• Significant lease transactions in 2006 include: Plastipak Packaging who signed a three year deal for 120,000 sf at 1 Distribution Center Drive in Littleton, Nuvera Fuel Cells who leased 110,000 sf at 129 Concord Rd, in Billerica, and L3 Communications who renewed their 80,000 sf lease at 10 Commerce Way in Woburn.

0.9

24.0%

0.6

16.0%

0.3

8.0%

-0.0

0.0%

-0.3

• AEW Capital Management purchased 14 Aegean Drive from the Tambone Corporation for $18.35 million.The 234,000-sf warehouse/ manufacturing facility was fully leased at the time of sale. Major tenants in this building include Crown Cork & Seal, Inc., Mattress Giant and Cytec Corporation.

-0.6

4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 Absorption

Vacancy Rate

N O RT H S H O R E Overall Absorption vs. Vacancy Rates

• The warehouse/distribution sector saw the highest activity with positive overall absorption of 538,087 sf in 2006 vs. negative 272,236 sf in 2005.

• Average Rental Rates increased from $7.03 psf in 2005 to $9.06 psf in 2006.The overall vacancy rate decreased from 15.1% in 2005 to 14.9% in 2006, the lowest in the market since 2003.

18.0%

0.2

12.0%

0.1

6.0%

0.0

0.0%

(msf)

• The largest lease was ADP at 13 Centennial Drive in Peabody for 134,164 sf, followed by Magellan Aerospace for 80,000 sf at 20 Computer Drive in Haverhill.

0.3

-0.1

• Tenant demand for space in the 128 North market should remain strong in 2007 as there are currently 25 tenants in the market with requirements in excess of 40,000 sf.

-0.2

4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 Absorption

Vacancy Rate

I-495 WEST Overall Absorption vs. Vacancy Rates

• Year-to-date absorption increased from 59,289 sf in 2005 to 884,007 sf in 2006, leading to a 2.9 percentage point decrease in the overall vacancy rate to 16.4% in 2006.

0.6

24.0%

0.4

16.0%

0.2

8.0%

0.0

0.0%

(msf)

• Leasing activity increased in the 495 West industrial market by 552,774 sf to 1,553,332 sf in 2006. Most notable leases in the submarket include: Cytyc’s 145,000-sf lease at 445 Simarano Drive, 113,000 sf was leased to RenaMed Biologics at 20 Walk Up Drive in the Westborough Industrial Park, and Dealer Tire took 101,000 sf at 20 Freedom Way in Franklin.

-0.2

• 20 Freedom Way in Franklin sold to Suffolk Advisors. New Boston Fund sold the 234,000 sf warehouse building for approximately $16.5 million. Suffolk Advisors had Dealer Tire occupy the space at the time of the sale.

-0.4

4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 Absorption

Vacancy Rate

G R E AT E R B O S TO N M A / S O U T H E R N N E W H A M P S H I R E

17

INDUSTRIAL SUBMARKET REVIEW M E T ROW E S T Overall Absorption vs. Vacancy Rates

• Large availabilities in the Metrowest industrial market include: 89,000 sf at Five Chrysler Road, 42,000 sf at 22 Pleasant Street and 23,000 sf at 16 Tech Circle. • The Metrowest industrial submarket posted negative absorption of 91,588 sf in 2006, the first time since 2003 where absorption for all property types in this market has been negative.

0.15

6.0%

0.10

4.0%

0.05

2.0%

0.00

0.0%

(msf)

• Overall rents for all industrial classes have increased from $7.18 psf in 2002 to an average of $9.86 psf in 2006; however, the average rental rate has still not recovered from the high of $12.81 psf in 2001.

-0.05 -0.10

4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 Absorption

Vacancy Rate

WO R C E S T E R Overall Absorption vs. Vacancy Rates

• 26,440 sf of warehouse space at 211 Shrewsbury Street in West Boylston was sold by Multistate Distributor in the first quarter for approximately $12.0 million.

0.9

30.0%

0.6

20.0%

0.3

10.0%

0.0

0.0%

(msf)

• Gillette secured the largest lease of the year taking 734,620 sf at 66 Saratoga Boulevard and 18 Independence Drive/Devens Commerce Center in Ayer. United Plastics followed, leasing 120,000 sf at 75 Jytek Drive.

• The direct average rental rate continued to grow for the fourth consecutive year, increasing by 4.7% from $4.46 psf in 2005 to $4.67 psf in 2006.

-0.3 -0.6

4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 Absorption

Vacancy Rate

128 WEST Overall Absorption vs. Vacancy Rates

• Adnexus Therapeutics signed two leases for approximately 60,000 sf of R&D space and Google leased the entire 47,800 sf at Four Hartwell Place, marking a substantial entry to the suburban Boston market by a leading technology firm. • Rental rates remained stable in 2006, averaging $10.97 psf on a direct NNN basis. The tightening vacancy in 128 West has had little effect on the rental rates.

0.6

24.0%

0.4

16.0%

0.2

8.0%

0.0

0.0%

(msf)

• The 9.0-msf 128 West submarket is comprised of approximately 6.0 msf of Flex/R&D buildings, leaving the remaining 3.0 msf to warehouse/ distribution and manufacturing.Vacancy declined across all three markets to 13.7% in 2006, down from 17.4% for the same period in 2005.

-0.2 -0.4

4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 Absorption

18

C U S H M A N & WA K E F I E L D M A R K E T B E AT Y E A R - E N D 2 0 0 6

Vacancy Rate

INDUSTRIAL SUBMARKET REVIEW I-495 SOUTH Overall Absorption vs. Vacancy Rates

• Leasing activity in 495 South more than doubled from 1,049,796 sf in 2005 to 2,519,382 sf in 2006.World Publications and Trader Joe’s signed deals at 140 Laurel Street, a building that had previously been vacant for two years, for 252,000 sf and 150,000 sf, respectively.

18.0%

1.0

12.0%

0.5

6.0%

0.0

0.0%

(msf)

• Positive overall absorption of 679,303 sf led to a 2.8 percentage point decrease in the overall vacancy rate to 12.8% for manufacturing, flex and warehouse space for 2006. Overall vacancy in this market has shown a decreasing trend for the past four years.

1.5

-0.5

• Significant construction completions include 2 Annette Road and 1000 South Crane Avenue, a 59,000-sf and 48,000-sf warehouse facility, respectively.

-1.0

4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 Absorption

Vacancy Rate

128 SOUTH Overall Absorption vs. Vacancy Rates

• 128 South posed positive absorption of 221,914 sf. The overall vacancy rate decreased by 3.3 percentage points in 2006 to 11.2%. Vacancy rates for all industrial building types decreased in 2006 from 2005.

1.5

21.0%

1.0

14.0%

0.5

7.0%

0.0

0.0%

(msf)

• Cabot, Cabot & Forbes sold 825 University Avenue to KBS Realty for $28.8 million ($172.81 psf) at the end of 2006.The building was fully leased at the time of the sale. LTX Corporation and Instron Corp. are the major tenants.

• Millennium Graphics will occupy 165,000 sf at 26 Dartmouth Street in Westwood, Aspect Medical signed a ten year deal at 100 Upland Drive in Norwood, and Micro Optical leased 78,000 sf at the Westwood Industrial Park.

-0.5 -1.0

4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 Absorption

Vacancy Rate

RO U T E 3 S O U T H Overall Absorption vs. Vacancy Rates

• American Plumbing & Heating purchased 1000 Cordwainer Drive, a 43,000-sf warehouse building, for $3.9 million from Bay State Metal Products in the fourth quarter. American Plumbing & Heating will occupy the entire building.

• Asking rents for all industrial property types in Route 3 South increased from to $6.27 psf in 2005 to $6.55 psf in 2006. The most dramatic rent increase was in the manufacturing sector, where rents increased by $3.35 psf over the previous year.

12.0%

0.05

6.0%

-0.00

0.0%

(msf)

• Despite negative absorption of 29,321 sf, overall vacancy for the Route 3 South market declined by 1.9 percentage points to 8.2%.

0.10

-0.05 -0.10 -0.15

4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 Absorption

Vacancy Rate

G R E AT E R B O S TO N M A / S O U T H E R N N E W H A M P S H I R E

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INDUSTRIAL MARKET HIGHLIGHTS SIGNIFICANT 2006 NEW LEASE TRANSACTIONS Building 192 Mansfield Avenue 140 Laurel Street 26 Dartmouth Street 140 Laurel Street

Submarket 495 South 495 South 128 South 495 West

Tenant Autopart International World Publications Millennium Graphics Trader Joe’s

Square Feet 335,000 252,070 165,000 150,000

Property Type Warehouse/Distribution Warehouse/Distribution Flex Warehouse/Distribution

Square Feet 166,655 600,000 275,000 234,254 233,450

Purchase Price $28,800,000 $23,000,000 $19,250,000 $18,350,000 $16,458,255

Square Feet 617,621 210,000 150,000 58,550 48,000 38,000

Completion Date 7/06 1/06 12/06 6/06 2/06 1/06

Square Feet 137,697 79,200

Completion Date 3/07 6/07

SIGNIFICANT 2006 SALE TRANSACTIONS Building 825 University Avenue 81 Commerce Drive 154 Campanelli Drive 14 Aegean Drive 20 Freedom Way

Submarket 128 South Fall River/New Bedford 495 South 495 North 495 West

Buyer KBS REIT Condyne Net Lease Capital Advisors AEW Capital Management Suffolk Advisors

SIGNIFICANT 2006 CONSTRUCTION COMPLETIONS Building BJ’s Distribution Center 190 Mechanic Street Easai Research Institute Facility Two Annette Road 1000 South Crane Avenue 101 Brick Kiln Road

Submarket Worcester 495 West 495 North 495 South 495 South 495 North

Property Type Warehouse/Distribution Warehouse/Distribution Flex Warehouse/Distribution Warehouse/Distribution Warehouse/Distribution

SIGNIFICANT PROJECTS UNDER CONSTRUCTION Building Revolutionary Way 80R Industrial Way

Submarket 495 South 495 North

Property Type Warehouse/Distribution Manufacturing

SIGNIFICANT LEASE AVAILABILITIES Building 66 Saratoga Blvd 55 Green Street 525 Campanelli Drive Two Nemco Way 155 Airport Road 60 Maple Street 208 North Street

20

Submarket Ayer Clinton Brockton Ayer Fitchburg Mansfield Foxborough

Direct/ Sublease Sublease Direct Sublease Direct Direct Direct Direct

Available Square Feet 410,000 323,000 218,091 216,010 216,000 211,903 210,000

C U S H M A N & WA K E F I E L D M A R K E T B E AT Y E A R - E N D 2 0 0 6

Property Type Warehouse/Distribution Manufacturing Warehouse/Distribution Warehouse/Distribution Manufacturing Warehouse/Distribution Warehouse/Distribution

Possession Date Immediate Immediate Immediate Immediate Immediate Immediate Immediate

I N D U S T R I A L M A R K E T S TAT I S T I C S No. of Bldgs.

Overall Vacancy Rate

YTD Leasing Activity

YTD Under Construction Construction Completions

YTD Overall Absorption

Market/Submarket

Inventory

Boston East

12,316,320

162

8.1%

448,631

0

0

439,842

Boston West

7,591,483

136

16.7%

204,307

0

0

(129,716)

Direct Weighted Average Net Rental Rate* Flex MF OS** W/D $7.33

N/A

$9.62

$29.14 $15.43

$16.76

N/A

$8.85

Boston North

5,948,842

92

10.4%

181,653

0

0

223,937

$10.28

$6.80

N/A

$6.81

Boston South

6,069,299

81

19.6%

234,326

0

0

184,524

N/A

$5.40

N/A

$5.27

31,925,944

471

12.7%

1,068,917

0

0

778,587

Inner Suburbs Total

$17.91 $7.62

Northwest Corridor

43,149,170

641

14.1%

2,331,052

79,200

38,000

196,611

North Shore

28,901,777

328

14.9%

981,985

150,000

0

532,447

North Total

72,050,947

969

14.4%

3,313,037

229,200

38,000

729,058

I-495 West

32,297,815

411

16.4%

1,553,332

38,400

210,000

884,007

$8.14

$6.22

N/A

$6.15

MetroWest

8,678,884

90

3.9%

204,472

0

0

(91,588)

$12.49

$6.67

N/A

$9.94

Worcester

24,635,749

228

23.2%

925,300

639,621

0

(422,796)

$12.20

$3.74

N/A

$4.67

128 West

9,049,270

145

13.7%

354,149

0

0

(288,131)

$11.25

$8.18

N/A $12.88

West Total

74,661,718

874

16.9%

3,037,253

678,021

210,000

81,492

$9.43

$4.49

N/A

$5.50

128 South

24,301,937

331

11.2%

1,164,675

0

0

221,914

$9.22

$5.43

N/A

$6.39

I-495 South

35,086,861

408

12.8%

2,519,382

173,697

106,550

332,210

$9.59

$3.80

N/A

$5.02

Route 3 South

$9.23

N/A $6.69

$8.23

N/A

$5.99

$10.72 $10.43

N/A

$6.41

N/A

$6.12

$9.56

$9.71

6,701,993

107

8.2%

273,664

0

0

(29,321)

$9.31

$9.37

N/A

$5.19

Fall River/New Bedford

10,197,272

69

3.0%

94,500

15,750

0

154,500

N/A

$2.77

N/A

$4.36

South Total

76,288,063

915

10.6%

4,052,221

189,447

106,550

679,303

$9.34

$4.40

N/A

$5.28

Boston Suburban Total

223,000,728

2,758

13.9% 10,402,511

1,096,668

354,550

1,489,853

$9.48 $6.00

N/A $5.60

TOTAL

254,926,672

3,229

13.8% 11,471,428

1,096,668

354,550

2,268,440

$10.12 $6.28

N/A $5.73

62,296,858

1,675

16.5%

3,392,078

186,000

0

(42,858)

$10.12

By Property Type

2006

Flex Manufacturing Warehouse/Distribution Office Service TOTAL

2005 2004

2003

$9.80 $11.81 $12.13

79,936,950

1,059

11.4%

2,279,927

761,000

0

675,035

$6.28

$5.87 $6.02

$6.55

112,692,864

1,293

14.0%

5,799,423

831,468

354,550

1,576,263

$5.73

$5.79 $5.83

$6.28

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

254,926,672

3,229

13.8% 11,471,428

1,096,668

354,550

2,268,440

N/A

N/A

N/A

$6.90 $6.82 $7.83 $8.19

* Rental rate reflects $psf/year ** OS inventory does not exist in this market MF = Manufacturing

OS = Office Service

WD = Warehouse/Distribution

G R E AT E R B O S TO N M A / S O U T H E R N N E W H A M P S H I R E

21

M U LT I - FA M I LY M A R K E T OV E RV I E W & HIGHLIGHTS Overall fundamentals in Boston’s apartment market improved in 2006. Most submarkets witnessed improvements in occupancy and overall effective rents, however, certain submarkets did remain soft as deliveries temporarily outpaced demand. Core submarkets, such as Cambridge, Downtown, and Route 128 West have substantially reduced concessions (excluding those given during lease-up). Market wide, concessions now average approximately one-half to twothirds of a month’s rent. Approximately 5,680 units across 27 developments were delivered throughout greater Boston in 2006. Notable projects include: Jefferson at Dedham Station (301 units), Archstone Boston Common in Boston (420 units), ArborPoint at Station Landing in Medford (550 units), Windsor Green in Andover (191 units), Kimball Towers in Burlington (256 units), Endicott Green in Danvers (258 units), Stonegate in Marlborough (332 units) and Highlands at Dearborn in Peabody (446 units). What continues to be notable is that 12 months ago there were upwards of 13,000 units in 42 communities expected to deliver. However, a combination of permitting issues, deal fundamentals and construction delays significantly reduced the pipeline. The potential deliveries in 2007 total approximately 6,800 units in 29 communities.With condo conversions no longer viable for most locations, developments are relying on employment growth as the key driver for increasing rental demand. In the last half of 2006, employment gains did have a material impact on demand, with further improvement anticipated in 2007.

I N V E S T M E N T AC T I V I T Y Despite a record year for multifamily investment activity in Boston in 2005, 2006 was even better. During the year, there were 21 sales greater than $10 million and totaling $870 million. Some of the more notable transactions include the sale of Village at Quarry Hills in Quincy for $338,892/unit, Jefferson at Dedham Station for $252,492/unit,Windsor Heights and Walden Park Apartments in Cambridge for ($240,302/unit. The average capitalization rates for non-condo conversion class A and class B assets dropped to near 5.2% and 4.8%, respectively, depending on embedded concessions. This drop emphasizes the clear cap-rate compression that has occurred in the market as just six years ago, the average cap rates were in the range of 7.5% for class A and 8.0% for class B assets.

OUTLOOK Multi-family fundamentals are expected to improve in 2007 with significant gains in effective rents expected as employment grows. New supply should not be a factor as the number of new units scheduled represents only a small fraction of overall inventory. Should interest rates rise some re-pricing in the smaller private capital transactions could occur, however, continued pent-up demand in the institutional arena is likely to drive pricing on larger multi-family assets.

SIGNIFICANT 2006 INVESTMENT TRANSACTIONS Building Village at Quarry Hills Jefferson at Dedham Station The Ridge Walden Park Apartments Heritage at Stone Ridge Avalon Estates Reserve at Marina Bay Katahdin Woods

City Quincy, MA Dedham, MA Waltham, MA Cambridge, MA Burlington, MA Hull, MA Quincy, MA Lexington, MA

Class A A A B A A A A

Source: Cushman & Wakefield Capital Markets

22

C U S H M A N & WA K E F I E L D M A R K E T B E AT Y E A R - E N D 2 0 0 6

Units 316 301 264 232 180 162 135 128

Purchase Price $107,090,000 $76,000,000 $73,700,000 $55,750,000 $39,810,000 $34,550,000 $34,000,000 $28,550,000

R E TA I L M A R K E T OV E RV I E W & HIGHLIGHTS footage sold increased significantly, the price per square foot and overall average cap rates remained constant in 2006. Groceryanchored shopping centers remained the dominant property type with a total of $737.5 million trading, or 51.3% of the total transaction volume. Several recently completed Lifestyle Center developments comprised 18.9% of the total 2006 sales volume and Neighborhood Centers and Power Centers rounded out the market, representing 15.5% and 14.3%, respectively.

Boston’s retail sector had an active and healthy 2006. Construction volume and capital investment were up and retail rents have risen across the board, particularly on Boston’s Newbury Street where asking rents range from $85.00 psf to over $180.00 psf. Strong demand was seen in the region’s suburban malls and groceryanchored shopping centers, which have rapidly filled with leading national clothing and restaurants chains over the last two years. In Boston, the completion of the Central Artery Tunnel has given greater access to the City and a number of new hotels opened or were repositioned, including the Intercontinental and Taj Boston. Accordingly, inner city retail has followed. Recent store openings include Best Buy at 360 Newbury Street and the Newbry, which houses a Borders Books and H&M on the corner of Newbury and Clarendon Streets. Over the next two years, the revitalization of Downtown Crossing with a 650,000-sf mixed-use development will positively impact the market. Purchased by Vornado and Gale, this renovation of the old Filenes headquarters will house residential, office and retail in the heart of Boston’s Financial District.

The record-breaking year for investment in Boston retail was fueled by the clear over abundance of capital in the market. The most aggressive buyers in the market were REIT’s (typically teamed with institutional capital) which captured an impressive 43.3% of the market. Institutional investors followed suite through acquiring 29.9% of the market and rounding out the group were the private investors who purchased 26.9% of the market. Though still a major player in the retail markets, private investors have dwindled from a commanding 69% in 1999 to 26.9% in 2006.

OUTLOOK

Several life-style developments have emerged in Boston’s suburbs. Wayside Commons, a 196,000-sf lifestyle center in Burlington will house an L.L. Bean retail store, a Borders Books, and Capital Grill restaurant. Westwood Station, being developed by Cabot, Cabot and Forbes, Commonfund and New England Development, will be an 875,000 sf community with a large retail component, along side office and residential.

While Boston and the Northeast have suffered a clear downturn in the housing market (sales of existing homes through November were down 25.0% year-over-year), which in-turn affects overall consumer confidence, personal income remains high. According to the U.S. Bureau of Economic Analysis, total personal income in Massachusetts was up 5.5%, seasonally adjusted, from the third quarter of 2005 to the third quarter of 2006. High personal incomes should be a driving force- along with continued low volatility in interest rates- that will fuel continued demand for retail in greater Boston. This strong demand, coupled with the abundance of capital readily available for investment should result in another strong year for retail investment transactions.

I N V E S T M E N T AC T I V I T Y The year was strong for the retail capital markets. A record $1.5 billion of retail properties traded in 2006, exceeding the previous record in 2005 by 17%. While both the dollar volume and square

SIGNIFICANT 2006 INVESTMENT TRANSACTIONS Building Twin City Plaza Linden Square

City Somerville, MA Wellesley, MA

Property Type Grocery-Anchored Life-Style Center

Center at Hobbs Brook Shaws Plaza Village Shoppes of Salem Borders Boston Fashion Crossing Brookside Shops

Sturbridge, MA Raynham, MA Salem, NH Boston, MA North Attleboro, MA Acton, MA

Grocery-Anchored Grocery-Anchored Power Community Center Urban-Retail Community Center Life-style Center

Buyer Square Feet Regency Centers 285,747 Federal Realty 261,000 Investment Trust Kimco 231,016 Cedar Shopping Centers 176,000 ING Clarion 170,270 Anglo Irish Bank 112,739 RREEF 105,042 TIAA Realty Inc. 76,000

Purchase Price $63,100,000 $99,600,000 $53,100,000 $29,000,000 $39,700,000 $32,600,000 $28,000,000 $27,850,000

Source: Cushman & Wakefield Capital Markets

G R E AT E R B O S TO N M A / S O U T H E R N N E W H A M P S H I R E

23

G L O S S A RY / M A J O R M A R K E T DEFINITIONS OFFICE Inventory: Includes all existing competitive office buildings that satisfy the rentable square footage cut-off size or larger. Government, medical, office condos, strip centers of mixed use and owner-occupied buildings are not included. Class A: Most prestigious buildings competing for premier office users with above average rents for the area. Buildings have high quality standard finishes, state-of-the-art systems, exceptional accessibility and suggest a definitive market presence. Class B: Buildings competing for a wide range of office users with average rents for the area. Building finishes are fair to good for the area and systems are adequate, but the buildings do not compete with class A at the same price. Class C: Buildings competing for tenants requiring functional space at below average rents for the area. CBD: Central Business District. The “downtown” area. Non-CBD: The area around a city. The “suburban” area. Asking Rental Rates: Gross asking rates per square foot, weighted by the amount of square footage available.

OFFICE & INDUSTRIAL Direct Available Space: Space vacant and available through the building landlord. Sublease Space: Space vacant and available through the lessee to a third party for the remainder of the lessee’s term. Overall Vacancy Rate: Space vacant and available both directly and through sublease, divided by the inventory. Space in properties under construction or under renovation is not included. Direct Vacancy Rate: Space, vacant and available through the landlord, divided by the inventory. Space in properties under construction or under renovation is not included. Direct Absorption: The net change in occupied built space for a given period of time, excluding sublease space.

Leasing Activity: The sum of all completed transactions in a given period of time, including sublet space and pre-leasing but excluding renewals. Pre-Leasing Activity: The sum of all completed lease transactions in under construction, under renovation and proposed projects. Sales Activity: Existing building sale transactions executed during a period of time. Cap Rate: The percentage used to determine the value of income property through capitalization.

INDUSTRIAL Flex: Flexible-use space designed for office, research and development, laboratory, light assembly and technology-oriented uses.The building may be one- or two-story facilities comprised of roughly 80% to 100% office finish with dock-level truck doors and ceiling heights between 12’ and 14’. Parking ratios are typically in the range of four spaces per 1,000 square feet. Manufacturing: Buildings with extensive power capabilities able to accommodate heavy equipment. The structures generally have thick flooring, some grade level doors, and less than 20% office. Warehouse/Distribution: Modern, one- and two-story industrial buildings designed primarily for distribution with typical office finish of 0 to 30%, clear ceiling heights ranging from 16’ to 28’ and dock- or grade-level truck loading.Warehouse facilities are designed to accommodate the warehousing, distribution and light assembly of goods. Asking Rental Rates: Triple net asking rates per square foot, weighted by the amount of square footage available.

MAJOR MARKET DEFINITIONS Boston CBD Office: The Central Business District encompasses the following areas: Financial District, Government Center/North Station, Midtown, Back Bay, South Station/Fort Point Channel and Charlestown.

Construction Completions: Buildings that received their Certificate of Occupancy.Tenancy may not yet have taken place.

Boston Non-CBD Office: The Non-CBD market encompasses the following areas: South End/Medical Center, Alewife/Fresh Pond, Massachusetts Avenue/Harvard Square, Kendall Square/East Cambridge, Somerville/Medford/Malden, Allston/Brighton/ Watertown, 128 North, 128 West, 128 South, MetroWest, I-495 North, I-495 West and I-495 South.

Under Construction: Projects which are beyond site preparation. A Certificate of Occupancy has not been issued. Under construction projects do not include projects under renovation.

Southern New Hampshire Office: The Southern New Hampshire office market includes the following areas: Nashua, Manchester, Bedford, Portsmouth and Concord.

Proposed: Projects which are in the planning stages and may, or may not, have been approved. Construction has not yet begun. Projects that require, and have not secured, a lead tenant to commence are not included.

Boston Industrial: The Boston industrial market encompasses the following areas: Boston, I-495 West, MetroWest,Worcester, 128 West, Northwest Corridor, North Shore, 128 South, I-495 South, Route 3 South and Fall River/New Bedford.

Overall Absorption: The change in occupied built space for a given period of time, including sublease space.

24

C U S H M A N & WA K E F I E L D M A R K E T B E AT Y E A R - E N D 2 0 0 6

Cushman & Wakefield International Offices Through a combination of our Cushman & Wakefield offices, Alliance and Associate offices, we serve the needs of our clients in all business markets around the world. Our more than 11,000 real estate professionals meet the changing needs of their clients with the highest level of quality service and integrity.

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