Oakland Metro Office All Classes Overall Vacancy vs. Full Service Asking Rental Rates $2.11 $2.04 $2.08 $1.80 $1.95 $1.89 $2.17

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1 LAS VEGAS INDUSTRIAL First Quarter 2007 c o l l i e r s i n t e r n at i o n a l Oa k l a n d, c a Market Research E a s t B ay Ov e rv i e w t h i r d Q u a rt e r Summary During the third quarter the East Bay commercial real estate market held steady despite a volatile economic environment. The sub prime issue that has impacted many of the far east bay and central valley markets in northern California has had little if any impact on the commercial markets in the near east bay. Market Indicars Net Absorption Construction Rental Rate office Net Absorption Construction Rental Rate industrial 3Q Q Q 2007 * 4Q 2007 * The Oakland Metro office market continues improve as job growth through out the region has remained strong. Wareham Developments is now shell complete on their new Emerystation East project. Wareham has signed several leases, with Amyris Biotechnologies taking 70,691 and Novartis Pharmaceuticals committing 35,920. Brandywine is about open 2100 Franklin but has yet secure a tenant for the 210,000 foot speculative building. The Shorenstein Company has preliminary design approval for its 500,000 foot project at City Center. Shorenstein expects break ground in the spring of 2008 and is rumored be in discussions with a large user for the building. SKS Investments has submitted its application the City of Oakland re-entitle its proposed project at 1100 Broadway. The project involves the hisric renovation of the Key Systems building in conjunction with construction of 20 sries of new office space. These new development projects all point the fact that institutional confidence in the Oakland market is extremely strong and we anticipate continued upward pressure on rental rates. The industrial secr through out the region is also very strong as companies serve this growing market coupled with increasing trade activity through the Port of Oakland. Transportation and logistics companies have been especially active this. We expect these industries continue grow, which will keep industrial and warehouse vacancy rates in the single digits and continue boost asking rents and property values. VACANCY VS RENTAL RATE $ % $ % Oakland Metro Office All Classes Overall vs. Full Service Asking Rental Rates $1.72 $ % 16.5% $ % 15.3% $ % $ % $ % $ % Asking Full Service Rent $ % $ % $ % $3.00 $2.80 $2.60 $2.40 $2.20 $2.00 $1.60 $1.40 $1.20 $ % 7.0% 3.0% 1.0% 8.2% 8.2% $ % I-80/880 Corridor Overall Industrial Market vs. Asking NNN Rental Rates 7.9% $ % 6.7% 6.8% 6.5% 5.5% 5.4% Asking NNN Rent $ % 6.2% $0.58 $0.52 $0.46 $0.44 $0.42 $0.40 * Projected

2 OAKLAND Office third Quarter 2007 Office Overview Despite somewhat sluggish leasing activity throughout the region, most of our submarkets experienced rapidly escalating asking rental rates. The average asking rent for both Class A and B/C & Flex categories rose $2.21 Full Service per foot per month (psf/mo), which is nearly a 9% increase since the fourth quarter of last. The most noteworthy increases came from the Class A market, where rents have increased by 14% $2.71 Full Service psf/mo. Emeryville led the charge, where rents rose $3.04 Full Service psf/mo. Downwn Oakland also had a surge in asking rental rates, where rents averaged at $2.66 Full Service psf/mo. Generally speaking asking rents in the Oakland Metropolitan Area are still lower than San Francisco and as rents continue increase in San Francisco, we expect more tenants be enticed in moving across the bay. It should be noted that the increase in vacancy for the Class A markets, was largely due addition of newly completed buildings, like Center Twenty One in Downwn Oakland and EmeryStation East in Emeryville. The Class B/C and Flex market posted a 3% increase in asking rental rates, ending the third quarter at $1.86 Full Service psf/mo. Despite the climbing asking rents, markets in the southern end of the Metropolitan Area continued struggle with high vacancy rates. Marina Village, Harbor Bay, and the Oakland Airport all had vacancy rates that were higher than 20%. However, we believe these submarkets will improve through the course of the as the overall region continues tighten. Market activity significant third quarter transactions significant leases Property Address month/ tenant type 2100 Milvia Ave., Berkeley 7/1/ ,000 Barra office 180 Grand Ave., Oakland 8/15/ ,367 health Net office 5650 Hollis St., Emeryville 8/1/ ,809 Bayer Pharmaceuticals office/flex significant Sales Property Address month/ buyer / seller type 1111 Jackson St., Oakland 8/24/ ,200 ScanlanKemperBard Co. / Encinal Industries Office 2120 University Ave., Berkeley 8/24/ ,66 scanlankemperbard Co. / Encinal Industries Office 2015 Shattuck Ave., Berkeley 8/24/ ,300 scanlankemperbard Co. / Encinal Industries Office OFFICE market vacancy vs. asking full service rental rates class a, class b&c/flex Oakland Metro Area Class A Market Overall vs. Full Service Asking Rental Rates Oakland Metro Area Class B/C Market Overall vs. Full Service Asking Rental Rates $3.40 $2.60 $3.20 $2.40 $3.00 $2.20 $2.02 $2.01 $2.02 $2.05 $2.09 $2.12 $2.17 $2.22 $2.32 $2.38 $2.45 $2.53 $2.71 $2.80 $2.60 $2.40 $2.20 $2.00 $1.52 $1.53 $1.55 $1.57 $1.58 $1.62 $1.62 $1.71 $1.74 $1.81 $1.82 $1.82 $1.86 $2.00 $1.60 $1.40 $1.20 $ % 16.8% 15.2% 13.6% 14.8% 13.7% 12.6% 12.7% 10.9% 10.2% 7.2% 7.1% $1.60 $ % 17.8% 17.7% 18.2% 16.9% 16.1% 17.1% 16.9% 17.1% 17.3% 16.6% 16.8% 17.7% $0.80 Asking Asking Full Service Full Service Rent Rent Asking Full Asking Service Full Rent Service Rent 2

3 OAKLAND Office third Quarter 2007 Office market statistics Third quarter 2007 Sub-type existing properties direct vacancy sublease vacancy tal vacancy net absorption Leasing activiity rent submarkets bldgs tal invenry rate rate rate rate prior 3q q-2007 quarter 3q-2007 average asking Full service CBD SECTION OAKLAND DT A 29 9,842, , % 81, % 768, % 5.8% 4,008 12, , ,158 $ 2.66 B/C & FLEX 114 5,407, , % 37, % 893, % 1 (83,465) (29,957) 82, ,634 $ 1.87 Total ,250,374 1,543, % 118, % 1,661, % 9.1% (79,457) (17,544) 196, ,792 $ 2.24 OAKLAND JLS B/C & FLEX 44 1,662, , % - 270, % (37,563) (127,451) 37,260 42,941 $ 1.80 Total 44 1,662, , % - 270, % 12.7% (37,563) (127,451) 37,260 42,941 $ 1.80 CBD TOTAL A 29 9,842, , % 81, % 768, % 5.8% 4,008 12, , ,158 $ 2.66 B/C & FLEX 158 7,069,978 1,126, % 37, % 1,164, % 14.8% (121,028) (157,408) 119, ,575 $ 1.84 Total ,912,623 1,814, % 118, % 1,932, % 12.7% (117,020) (144,995) 234, ,733 $ 2.16 SUBURBAN SECTION RICHMOND B/C & FLEX 97 3,436, , % 67, , % 16.1% (17,997) (66,592) 47, ,627 $ 1.40 Total 97 3,436, , % 67, , % 16.1% (17,997) (66,592) 47, ,627 $ 1.40 BERKELEY DT A 9 599,882 71, % 7, % 78, % 15.3% 12,791 39,469 15,257 50,422 $ 2.64 B/C & FLEX , , % 2, % 125, % (28,185) (13,272) 21,492 75,330 $ 2.42 Total 37 1,570, , % 9, % 204, % (15,394) 26,197 36, ,752 $ 2.50 BERKELEY WEST B/C & FLEX 40 1,456, , % 15, % 184, % 7.8% (71,219) (49,061) 22,840 81,296 $ 2.05 Total 40 1,456, , % 15, % 184, % 7.8% (71,219) (49,061) 22,840 81,296 $ 2.05 EMERYVILLE A 14 2,569, , % 55, % 378, % 7.5% 43, , , ,632 $ 3.04 B/C & FLEX 44 1,683, , % 32, % 213, % 11.7% (16,097) 86,400 46, ,721 $ 2.16 Total 58 4,252, , % 87, % 592, % 9.3% 27, , , ,353 $ 2.69 ALAMEDA - MARINA VILLAGE B/C & FLEX 53 1,545, , % 52, % 388, % 2 44,339 40,528 43, ,464 $ 2.06 Total 53 1,545, , % 52, % 388, % 2 44,339 40,528 43, ,464 $ 2.06 ALAMEDA - HARBOR BAY B/C & FLEX 28 1,684, , % 88, % 428, % 25.1% (5,343) (35,496) 14,592 51,921 $ 2.09 Total 28 1,684, , % 88, % 428, % 25.1% (5,343) (35,496) 14,592 51,921 $ 2.09 OAKLAND AIRPORT A 3 453, , % 12, % 116, % 22.3% (15,833) (16,043) - 16,112 $ 1.94 B/C & FLEX 32 1,349, , % 11, % 312, % 22.7% (5,767) (41,023) 4,699 16,705 $ 1.54 Total 35 1,803, , % 23, % 429, % 22.6% (21,600) (57,066) 4,699 32,817 $ 1.64 SUBURBAN TOTAL A 26 3,622, , % 74, % 574, % 10.9% 40, , , ,166 $ 2.54 B/C & FLEX ,126,788 1,952, % 272, % 2,224, % 17.5% (100,269) (78,516) 201, ,064 $ 1.96 Total ,749,715 2,452, % 346,847 2,799, % 16.1% (59,695) 56, , ,230 $ 2.08 market tal MARKET TOTAL A 55 13,465,572 1,187, % 156, % 1,343, % 44, , , ,324 $ 2.71 B/C & FLEX ,196,766 3,078, , % 3,388, % 16.5% (221,297) (235,924) 320, ,639 $ 1.86 TOTAL ,662,338 4,266, % 465, % 4,732, % 12.7% (176,715) (88,340) 581,841 1,566,963 $ 2.21 QUARTERLY COMPARISON AND TOTALS QUARTERLY COMPARISON AND TOTALS Q ,662,338 4,266, % 465, % 4,732, % 12.7% (176,715) (88,340) 581,841 1,566,963 $ 2.21 Q ,810,106 3,673, % 418, % 4,091, % 12.7% (39,309) 88, , ,122 $ 2.11 Q ,810,231 3,637, % 414, % 4,052, % 13.1% 127, , , ,067 $ 2.08 Q ,281,483 3,704, % 475, % 4,179, % 14.9% 25,054 85, ,059 2,397,669 $ 2.01 Q ,217,008 3,668, % 361, % 4,212, % 15.3% 34,767 53, ,697 1,760,610 $

4 OAKLAND Industrial third Quarter 2007 Industrial Overview At the end of the third quarter, the Oakland Metropolitan Area s industrial market remains healthy, with the overall vacancy rate of 6.2%. The warehouse/distribution secr was the most active, with nearly 3.1 million of leasing and sale activity by the end of the third quarter. The vacancy rate for warehouse/ distribution product increased slightly 4.5%, which provides more of a cushion for prospective tenants who are looking in the area. rates for light industrial and R&D/Flex product also increased slightly, 6.2% and 16.1% respectively. Average asking rental rates for the overall market remained steady at $.56 NNN per foot per month (psf/mo). There has been a lot of turmoil in the financial markets over the sub prime loan crash, but we don t know yet how this may affect the industrial market. Our biggest concern is an overall economic slowdown or recession. The recent.50 point cut by the Federal Reserve will lower the Ocber SBA rates reduce the monthly costs of property ownership. As a result, we expect sales activity increase in the fourth quarter, relative the second and third quarters of this. We do expect the Oakland Metropolitan Area continue be active in all market segments. The area s convenient location, healthy trucking/logistics industry, and strong local economy will be sure limit the supply of available space. The lack of available developable land, rising development costs, and a strong economy will ensure that the area s commercial real estate market remains tight throughout future economic swings. Market activity significant third quarter transactions significant leases Property Address month/ tenant type Industrial Blvd., Hayward 8/1/ ,000 East Bay Logistics warehouse/distribution 1701 Marina Blvd., San Leandro 8/21/ ,000 Pacific American Services warehouse/distribution Whipple Rd., Union City 7/18/ ,140 L.A. Specialty Produce warehouse/distribution significant Sales Property Address month/ buyer / seller type 3200 Regatta Blvd., Richmond 7/13/ ,751 UC Berkeley / Channel Lumber Co. Warehouse/Distribution 3002 Giant Rd., Richmond 7/5/ , Giant Rd LLC / Orn Development Co. Light Industrial industrial market vacancy vs. asking nnn rental rates warehouse, light industrial and r&d/flex 9.0% 7.0% 3.0% $0.35 $0.35 $0.33 I-80/880 Corridor Whse./Dist. Market vs. Asking NNN Rental Rates $0.36 $0.35 $0.36 $0.39 $0.41 $0.42 $0.43 $0.45 $0.46 $0.46 $0.65 $0.55 $0.45 $0.40 $0.35 $0.30 $ % 7.0% 3.0% $0.51 $0.49 I-80/880 Corridor Light Industrial Market vs. Asking NNN Rental Rates $0.51 $0.52 $0.57 $0.58 $0.75 $0.70 $0.65 $0.55 $0.45 $ $1.02 $1.05 $1.06 I-80/880 Corridor R&D/Flex Market vs. Asking NNN Rental Rates $1.04 $1.07 $1.03 $1.04 $1.09 $1.09 $1.10 $1.07 $1.06 $1.04 $1.35 $1.30 $1.25 $1.20 $1.15 $1.10 $1.05 $1.00 $0.95 $ % 8.3% 8.7% 8.9% 7.7% 5.9% 5.9% 3.9% 3.5% 3.6% 3.2% 4.5% $0.20 $ % 7.1% 7.1% 6.9% 5.8% 5.8% 6.1% 5.3% 6.2% $0.35 $ % 15.8% 15.2% 18.1% 19.7% 18.2% 16.7% 15.4% 13.9% % $0.85 $0.80 Asking NNN Asking Rent NNN Rent Asking Asking NNN NNN Rent Rent Asking NNN Rent Asking NNN Rent 4

5 OAKLAND INDUSTRIAL third Quarter 2007 industrial market statistics Third quarter 2007 Sub-type submarkets existing properties direct vacancy sublease vacancy tal vacancy net absorption gross absorption rent bldgs tal invenry rate rate rate rate prior 3q q-2007 quarter RICHMOND INDUSTRIAL 225 5,094, , % 4, % 961, % 20.5% 82,073 92, , ,587 $ 0.57 WAREHOUSE 41 4,263, , % - 116, % 2.6% (4,750) 41,563 42, ,158 $ 0.46 R&D/FLEX 95 3,436, , % 67, , % 16.1% (17,997) (66,592) 47, ,627 $ 1.40 TOTAL ,794,840 1,575, % 72, % 1,648, % 13.3% 59,326 67, , ,372 $ 0.76 OAKLAND INDUSTRIAL ,664, , % 88, % 887, % 3.6% (20,585) 5, , ,357 $ 0.54 WAREHOUSE ,616, , % 16, % 971, % 5.2% (418,446) (451,671) 16, ,401 $ 0.47 R&D/FLEX NA NA NA NA NA NA NA NA NA NA NA NA NA NA TOTAL ,280,463 1,754, % 105, % 1,859, % (439,031) (446,249) 233,386 1,364,758 $ 0.52 SAN LEANDRO INDUSTRIAL ,661, , % 14, % 657,453 42,496 (229,776) 129, ,133 $ 0.61 WAREHOUSE ,543, , % - 499, % 3.3% (15,382) (209,027) 139, ,514 $ 0.45 R&D/FLEX ,380 70, % 10, % 81, % 11.2% 13,900 (10,413) 13,557 37,843 $ 0.88 TOTAL ,052,598 1,213, % 25, % 1,238, % 4.7% 41,014 (449,216) 282,090 1,244,490 $ 0.53 HAYWARD INDUSTRIAL ,504, , , % 1,186, % 5.7% (250,321) (278,137) 213, ,780 $ 0.61 WAREHOUSE ,078, , % - 515, % 1.5% (205,327) (35,865) 527,732 1,066,666 $ 0.46 R&D/FLEX 110 4,579, , % 76, % 865, % 17.1% (81,711) 33,155 92, ,256 $ 0.81 TOTAL ,162,924 2,303, % 264, % 2,567, % 4.8% (537,359) (280,847) 833,862 1,892,702 $ 0.56 UNION CITY INDUSTRIAL 162 7,883, , % 79, % 276, % 3.6% 6,691 92,735 10, ,926 $ 0.62 WAREHOUSE 81 7,187, , % 143, , % 9.4% 158,093 54, , ,460 $ 0.43 R&D/FLEX ,672 26, % 22, % 48, % (24,820) (27,008) (7,830) 14,796 $ 0.97 TOTAL ,941, , % 246, % 839, % 6.1% 139, , , ,182 $ q-2007 average asking nnn market MARKET TOTAL tal INDUSTRIAL ,808,460 3,593, , % 3,968, % 5.9% (139,646) (317,066) 726,675 2,424,783 $ 0.58 WAREHOUSE ,689,564 2,457, % 160, % 2,618, % 3.7% (485,812) (600,598) 894,024 3,073,199 $ 0.46 R&D/FLEX 272 9,734,677 1,389, % 177, % 1,566, % 17.9% (110,628) (70,858) 145, ,522 $ 1.04 TOTAL ,232,701 7,440, % 713, % 8,154, % (736,086) (988,522) 1,765,956 5,830,504 $ 0.56 QUARTERLY COMPARISONS ANDTOTALS TOTALS Q ,232,701 7,440, % 713, % 8,154, % (736,086) (988,522) 1,765,956 5,830,504 $ 0.56 Q ,169,548 6,901, % 453, % 7,354,938 (70,254) (252,436) 3,019,993 4,064,548 $ 0.56 Q ,169,548 6,652, % 631, % 7,284, % (182,182) (182,182) 1,044,555 1,044,555 $ 0.55 Q ,169,548 6,544, , % 7,102, % 5.5% 211,051 1,900,988 2,117,056 8,280,588 $ 0.54 Q ,077,051 6,325, % 895, % 7,221, % 6.7% 1,311,374 1,500,931 2,333,680 6,163,532 $

6 LAS OAKLAND VEGAS INDUSTRIAL third Quarter 2007First Quarter 2007 BROKERS & STAFF MANAGING PARTNER Kenneth W. Meyersieck Managing Partner/SVP (510) OFFICE Elena Cohen (510) Mike Corbett (510) Aileen Dolby (510) Ben F. Harrison (510) Trent Holsman (510) Ann Lovi (510) Kenneth W. Meyersieck (510) Al Musante (510) Anthony Stratn (510) INDUSTRIAL Chet Barney (510) Gabe I. Burke, SIOR (510) Norman J. Eggen, SIOR (925) remote office neggen@colliersparrish.com David Henderson (510) dhenderson@colliersparrish.com Richard P. Keely (510) rkeely@colliersparrish.com Greig F. Lagomarsino, SIOR (510) glago@colliersparrish.com James E. Morris (510) jmorris@colliersparrish.com Casey Ricksen (510) cricksen@colliersparrish.com Sean Sabarese (510) ssabarese@colliersparrish.com Todd O. Severson, SIOR (510) tseverson@colliersparrish.com Brady Thomas (510) bthomas@colliersparrish.com Joe Yamin Senior (510) jyamin@colliersparrish.com INVESTMENT Kevin Ebrahimi, CCIM Senior (510) kebrahimi@colliersparrish.com Gerald Kruse Senior (510) gkruse@colliersparrish.com Anna Lee (510) alee@colliersparrish.com RETAIL Reesa Tansey (510) rtansey@colliersparrish.com Sandra Weck (925) sweck@colliersparrish.com ADMINISTRATIVE Patricia Folks Office Manager (510) pfolks@colliersparrish.com Rodney Williamson Receptionist (510) rwilliamson@colliersparrish.com RESEARCH Glenda Cheng Research Analyst II (510) gcheng@colliersparrish.com MARKETING Jason Radburn Graphic Designer (510) jradburn@colliersparrish.com 267 offices in 57 countries on 6 continents USA 95 Canada 17 Latin America 17 Asia Pacific 52 EMEA 85 $63.5 billion in annual transaction volume million under management 10,171 Professionals Contact information United States 1999 Harrison Street, Suite 1750 Oakland, CA Tel: Fax: Ken Meyersieck Managing Partner/SVP Tel: Glenda Cheng Research Analyst II Tel: This report and other research materials may be found on our web site at com. This report is a research document of Oakland, California. Questions related information herein should be directed the Research Department at Information contained herein has been obtained from sources deemed reliable and no representation is made as the accuracy thereof. Colliers Parrish International is an independently owned and operated business and a member firm of Property Consultants, an affiliation of independent companies with over 240 offices throughout more than 50 countries worldwide. James B. Bohar (510) jbohar@colliersparrish.com COLLIERS INTERNATIONAL 6 6