27.5 Million Square Feet of Commercial Office Space Believed Destroyed or Damaged in Lower Manhattan; Represents Twenty Percent of Downtown Manhattan Office Market.

Business/News Editors & Real Estate Writers

NEW YORK--(BUSINESS WIRE)--Sept. 13, 2001

According to initial statistics released today by Grubb & Ellis, approximately 20 percent of the downtown Manhattan office market -- 15.5 million square feet of space -- was destroyed in Tuesday's terrorist attack on the World Trade Center. At the current time, Grubb & Ellis also believes another 12 million square feet of office space has been damaged in the aftermath of the attack as a result of falling debris, building collapse and fires.

Of the 15.5 million square feet in the World Trade Center area, about 97% (roughly 15 million square feet) was leased at the time of the attack. Of the 12 million square feet believed damaged, 11.5 million square feet was leased.

As a result, the immediate net loss of commercial office space in the Manhattan market is approximately 27.5 million square feet.

The available space in Manhattan at the current time is about 25.5 million square feet, according to Grubb & Ellis, although only a small percentage of this available space may be in the large floor plate format like that found in the World Trade Center and surrounding buildings.

An additional 22 million square feet of vacant space is immediately available outside Manhattan in northern New Jersey, Nassau County, Long Island, Westchester and Fairfield Counties.

For perspective and commentary on these numbers:

Ray O'Keefe, Regional Managing Director of Grubb & Ellis' Northeast region is able to take calls at 212/759-9700 x4777. Ray is also available via cell phone at 917/840-4817.

Justin Stein, Director of Client Services, 212/326-4815 or via cell at 917/806-0868

It is estimated that more than 81,000 workers have been displaced as a result of the loss or damage of 27.5 million square feet of office space in Lower Manhattan, following Tuesday's terrorist attack on the World Trade Center.

This estimate is based on an industry accepted corporate planning formula of three employees per 1,000 square feet of office space.

                Estimated Damage to World Trade Center
                    and Surrounding Office Market

Office Buildings Destroyed
Bldg                            Size      Occupied    Status
1 WTC                      4,761,416     4,507,467    Destroyed
2 WTC                      4,761,416     4,576,215    Destroyed
1 Liberty Plaza            2,121,437     2,081,203    Partial Collapse
7 WTC                      2,000,000     2,000,000    Destroyed
5 WTC                        783,520       780,873    Destroyed
4 WTC                        576,000       561,491    Destroyed
6 WTC                        537,694       537,694    Destroyed
                          15,541,483    15,044,943

Office Buildings Damaged
2 WFC                 2,591,244  2,542,244   Across Street - West
3 WFC                 2,263,855  2,247,611   Across Street - West
1 WFC                 1,461,365  1,323,865   Across Street - Southwest
1 Bankers Trust Plaza 1,415,086  1,415,086   Across Street South
140 West              1,171,540  1,171,540   Across Street - North
90 Church               950,000    950,000   Across Street - North
195 Broadway            875,000    676,587   Across Street - East,
                                            Blocked by Millenium Hotel
22 Cortlandt            668,110    555,897   Across Street - East
90 West                 350,000    335,251   Across Street - South
130 Cedar               135,000    124,300   Across Street - South
114 Liberty              69,004     69,004   Across Street - South
26 Cortlandt             25,000     25,000   Across Street - East
106 Liberty              18,000     18,000   Across Street - South
110 Liberty               6,000      6,000   Across Street - South
                     11,999,204  11,460,385

Hotels Damaged

55 Church/Millennium Hotel         380,542   Across Street - East,
                                            Likely Destroyed
3 WTC/Marriot World Trade Hotel              Destroyed

Source: Grubb & Ellis Company [phone]

For perspective and commentary on these numbers:

Ray O' Keefe, Regional Managing Director of Grubb & Ellis' Northeast region is able to take calls at 212/759-9700 x4777. Ray is also available via cellphone at 917/840-4817. Justin Stein, Director of Client Services, 212 326-4815 or via cell at 917/806-0868