1 of 8 Pierce is 1 of 3 counties in Seattle-Tacoma-Bellevue WA (with at least 5 communities) Rent ranking for counties in Seattle-Tacoma-Bellevue WA County Avg Rent 1. King $1,196 2. Snohomish $1,004 3. Pierce $905 Occupancy ranking for counties in Seattle-Tacoma-Bellevue WA County Avg Occ. 1. Pierce 94.8% 2. King 94.2% 3. Snohomish 93.0% Rent growth % Rankings Yr. over Yr. for counties in Seattle-Tacoma-Bellevue WA County Avg Rent 1. King 6.1% 2. Pierce 5.6% 3. Snohomish 3.4% Occupancy growth Rankings Yr. over Yr. for counties in Seattle-Tacoma-Bellevue WA County Avg Occ. 1. Pierce -0.6% 2. King -0.6% 3. Snohomish -1.8%
2 of 8 Seattle-Tacoma-Bellevue WA is 1 of 6 s in Washington Rent ranking for s in Washington Avg Rent 1. Seattle-Tacoma-Bellevue WA $1,117 2. Bremerton-Silverdale WA $906 3. Olympia WA $885 4. Portland-Vancouver-Beaverton $865 OR-WA 5. Spokane WA $702 6. Kennewick-Richland-Pasco WA $685 Occupancy ranking for s in Washington Avg Occ. 1. Kennewick-Richland-Pasco 97.3% WA 2. Olympia WA 95.5% 3. Portland-Vancouver- 95.0% Beaverton OR-WA 4. Bremerton-Silverdale WA 94.6% 5. Spokane WA 94.4% 6. Seattle-Tacoma-Bellevue WA 94.1% Rent growth % Rankings Yr. over Yr. for s in Washington Avg Rent 1. Kennewick-Richland-Pasco 10.3% WA 2. Seattle-Tacoma-Bellevue WA 5.7% 3. Portland-Vancouver- 3.3% Beaverton OR-WA 4. Olympia WA 3.1% 5. Spokane WA 2.8% 6. Bremerton-Silverdale WA 1.8% Occupancy growth Rankings Yr. over Yr. for s in Washington 1. Kennewick-Richland-Pasco WA 2. Bremerton-Silverdale WA 3. Seattle-Tacoma-Bellevue WA 4. Portland-Vancouver- Beaverton OR-WA Avg Occ. 3.2% 1.6% -0.8% -1.0% 5. Olympia WA -1.4% 6. Spokane WA -2.6%
3 of 8 Inventory Analysis Pierce County Properties/Units 77 / 16,393 Class A 13 / 2,354 Class B 31 / 6,737 Class C 33 / 7,302 Average units per property 212 Average year built 1987 Size range (units) 96-714 Age range 1964-2005 Unit Mix (all unit types appear in this report) % Benchmark Average Benchmark Average Benchmark Avg. Rent Benchmark Avg. Rent Totals Units of Mix % of Mix Sq. Ft Avg Sq Ft Rent Avg. Rent Sq. Ft. Sq. Ft. All 16,393 100.0% 100.0% 871 889 $905 $988 $1.04 $1.11 Urban Loft studio 157 1.0% 3.4% 514 481 $682 $827 $1.33 $1.72 jr 1bd 46 0.3% 0.6% 580 618 $786 $803 $1.36 $1.30 1bd 1bth 6,054 36.9% 34.2% 685 701 $773 $870 $1.13 $1.24 1bd 1.5bth 1bd TH 2bd 1bth 4,671 28.5% 18.1% 886 881 $889 $901 $1.00 $1.02 2bd 1.5bth 338 2.1% 2.1% 983 932 $932 $961 $0.95 $1.03 2bd 2bth 3,149 19.2% 26.4% 1,004 1,016 $1,006 $1,093 $1.00 $1.08 2bd 2.5th 2bd TH 126 0.8% 2.9% 1,171 1,161 $1,190 $1,191 $1.02 $1.03 3bd 1bth 82 0.5% 0.4% 1,022 1,032 $1,117 $1,015 $1.09 $0.98 3bd 1.5bth 16 0.1% 0.4% 1,041 1,088 $1,135 $931 $1.09 $0.86 3bd 2bth 1,490 9.1% 9.0% 1,173 1,199 $1,179 $1,206 $1.01 $1.01 3bd 3bth 3bd TH 264 1.6% 1.4% 1,482 1,433 $1,397 $1,407 $0.94 $0.98 4bd 5bd 2bth 5bd TH Age of Existing Inventory Area: Pierce County Benchmark: Pacific Northwest Region
4 of 8 All Classes Quarterly Trend Rental Trends for Pierce County Average Asking Rent 3Q2006 4Q2006 1Q2007 2Q2007 3Q2007 4Q2007 1Q2008 2Q2008 1 Yr. Change AVERAGE $795 $805 $820 $831 $857 $867 $886 $904 $905 5.6% studio $617 $602 $604 $630 $635 $646 $637 $664 $682 7.4% jr 1bd $692 $692 $725 $662 $875 $852 $793 $905 $786-10.1% 1bd 1bth $671 $684 $699 $711 $733 $741 $762 $778 $773 5.5% 2bd 1bth $771 $782 $797 $813 $832 $849 $868 $880 $889 6.8% 2bd 2bth $888 $896 $912 $917 $952 $969 $989 $1,011 $1,006 5.7% 2bd TH $1,001 $1,047 $1,028 $1,042 $1,052 $1,070 $1,065 $1,169 $1,190 13.2% 3bd 2bth $1,039 $1,048 $1,073 $1,082 $1,143 $1,144 $1,150 $1,186 $1,179 3.1% 3bd TH $1,226 $1,220 $1,226 $1,253 $1,213 $1,242 $1,253 $1,280 $1,397 15.2% Average Occupancy Rate 3Q2006 4Q2006 1Q2007 2Q2007 3Q2007 4Q2007 1Q2008 2Q2008 1 Yr. Change AVERAGE 94.2% 93.0% 94.9% 94.5% 95.4% 95.4% 96.0% 96.2% 94.8% -0.6%
5 of 8 All Classes Annual Trend Rental Trends for Pierce County Average Asking Rent 2000 2001 2002 2003 2004 2005 2006 2007 2008 4 Yr. Change AVERAGE $676 $705 $733 $749 $757 $777 $802 $844 $899 18.7% studio $497 $495 $495 $495 $495 $496 $588 $629 $661 33.6% jr 1bd $601 $651 $695 $690 $735 $745 $724 $778 $828 12.7% 1bd 1bth $572 $594 $616 $623 $630 $651 $675 $721 $771 22.3% 2bd 1bth $669 $692 $712 $723 $736 $757 $780 $823 $879 19.4% 2bd 2bth $726 $769 $805 $827 $837 $853 $891 $936 $1,002 19.7% 2bd TH $917 $973 $964 $930 $924 $957 $1,034 $1,048 $1,142 23.5% 3bd 2bth $880 $916 $967 $978 $982 $1,017 $1,052 $1,111 $1,172 19.3% 3bd TH $1,035 $1,112 $1,111 $1,117 $1,118 $1,156 $1,221 $1,233 $1,310 17.2% Average Occupancy Rate 2000 2001 2002 2003 2004 2005 2006 2007 2008 4 Yr. Change AVERAGE 96.6% 95.7% 94.0% 93.6% 91.2% 93.6% 93.9% 95.1% 95.7% 4.9%
6 of 8 2005-2008, All Classes Sales Trends for Pierce County 2008 2007 2006 2005 Total Transactions 1 3 6 3 Total Dollar Value $26,500,000 $58,729,250 $115,304,674 $86,400,000 Total Square Feet 212,018 582,852 1,059,731 870,997 Total Units 200 687 1,252 1,000 Median Year Built 2002 1987 1977 1987 Average Square Footage 212,018 194,284 176,621 290,332 Average Sale Price $26,500,000 $19,576,416 $19,217,445 $28,800,000 Average Price Per Square Foot $124.99 $100.76 $108.81 $99.20 Average CAP Rate 5.9% 10.1% Average GRM 9.86 Average Units 200.0 229.0 208.7 333.3 Average Price Per Unit $132,500 $85,486 $92,096 $86,400 2008 2007 2006 2005 Average Rent/sf (All) $1.04 $0.99 $0.93 $0.89 Class A $1.11 $1.07 $1.00 $0.93 Class B $1.05 $0.97 $0.92 $0.88 Class C $1.00 $0.95 $0.89 $0.83 Average Occupancy (All) 95% 95% 93% 93% Class A 96% 96% 93% 93% Class B 95% 94% 93% 93% Class C 96% 96% 94% 94%
7 of 8 Absorption Pierce County Units Absorbed Units Built Total Units Occupancy Rate Occupied Units Units Absorbed 1998 250 14,289 95.6% 13,660 N/A 1999 376 14,665 96.2% 14,107 447 2000 451 15,116 96.5% 14,586 479 2001 0 15,116 95.7% 14,466-120 2002 306 15,422 94.0% 14,496 30 2003 594 16,016 93.6% 14,990 494 2004 0 16,016 91.1% 14,590-400 2005 377 16,393 93.6% 15,343 753 2006 0 16,393 93.9% 15,393 50 2007 0 16,393 95.1% 15,589 196
8 of 8 Area Analysis Pierce County Cities with at least 5 communities City Communities % of Total Avg. Avg. Yr /Yr Change Occupancy Yr /Yr Change Rent Tacoma 40 61.5% 95.3% -0.4% $848 7.3% Puyallup 20 30.8% 94.6% 0.4% $954 5.1% Lakewood 5 7.7% 92.7% -1.9% $1,010 1.3%