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Economic and market indicators.

Market Rates and Bond Yields--%

                        Jun.    Dec.    Jun.    Dec.    Jun.    Jun.
                                2008    2008    2007    2007    2006

Reserve Bank Discount   0.50    0.86    2.25    4.83    6.25    6.02
Rate

Prime Rate (monthly     3.25    3.61    5.00    7.33    8.25    8.02
average)

Federal Funds Rate      0.21    0.16    2.00    4.24    5.25    4.99

3-Month Treasury Bills  0.18    0.03    1.86    3.00    4.61    4.79

6-Month Treasury Bills  0.31    0.26    2.13    3.23    4.76    4.97

3-Month Treasury Bills  0.39    1.77    2.76    5.02    5.33    5.35

LIBOR-3 month rate      1.13    2.47    2.95    5.17    5.35    5.38

U.S. 5-Year Bond        2.71    1.52    4.37    3.49    5.03    5.07

U.S. 10-Year Bond       3.72    2.42    4.78    4.10    5.10    5.11

U.S. 30-Year Bond *     4.52 *  2.87 *  5.12 *  4.53 *  5.20 *  5.15 *

Municipal Tax Exempts   4.56    5.17    4.50    4.23    4.34    4.36
(Aaa) [dagger]

Municipal Tax Exempts   4.84    6.15    4.92    4.58    4.65    4.88
[dagger]

Corporate Bonds (Aaa)   5.61    5.08    5.68    5.49    5.79    5.89

Corporate Bonds (A)     6.39    6.70    6.43    6.19    6.33    6.39
[dagger]

Corporate Bonds (Baa)   7.50    8.46    7.07    6.65    6.70    6.78

* As of April 2006, the Fed went back to reporting 30-yr rates; the
historical data is 20+ year rates. A factor for adjusting the daily
nominal 20-year constant maturity in order to estimate a 30-year
nominal rate can be found at www.treas.gov/offices/domestic-
finance/debt-management/interest-rate/itcompositeindex.html.

[paragraph] Seasonally adjusted
[dagger] Source: Moody's Bond Record
[double dagger] Revised figures used when available

Stock Dividend Yields--%

             Jun.  Dec.  Jun.  Dec.  Jun.  Jun.
             2009  2008  2008  2007  2007  2006

Common       2.35  3.00  2.15  2.06  1.81  1.96
Stocks--500

(Source: Standard & Poor's)

Other Benchmarks

                 Jun.     Dec.     Jun.     Dec.     Jun      Jun.
                 2009     2008     2008     2007     2007     2006

Industrial       95.4    103.6    111.7    114.1    113.4    111.9
Production         **       **       **       **       **       **
Index
[paragraph]
**
(Federal
Reserve 2002
= 100)

Unemployment      9.5      7.2      5.5      5.0      4.5      4.6
(%)
[paragraph]

Monetary
Aggregates,
daily avg.

M1,           1,650.1  1,595.8  1,385.6  1,364.2  1,363.9  1,369.9
$-Billions

M2,           8,370.1  8,154.1  7,687.2  7,447.1  7,241.2  6,829.9
$-Billions

Member Bank
Borrowed
Reserves

$-Billions        N/A      N/A      N/A      N/A    0.187    0.253
##

Consumer
Price Index

All Urban       215.7    210.2    218.8    210.0    208.4    202.9
Consumers

** On Nov. 7, 2005, the Federal Reserve Board advanced to 2002 the base
year for the indexes of industrial production, capacity, and electric
power use This follows the Dec. 5, 2002, change to a 1997 baseline,
from the previous 1992 baseline. Historical data has also been updated.

## As of March 2008, the Federal Reserve no longer supplied the total
reserves.

Per Capita Income

Per Capita         1Q09    4Q08    1Q08    4Q07    1Q07    4Q06    1Q06
Personal
Disposable
Income

Annual Rate       35,180  34,821  34,351  34,179  33,307  32,754  31,791
in Current
$s

Savings as           4.3     3.2     0.2     0.4     1.1     0.9     1.0
% of D.P.I,
[dagger][dagger]

                   Regional Mall                CBD Office

                2nd Qtr      1st Qtr      2nd Qtr      1st Qtr
                 2009         2009         2009         2009

Discount
Rate (IRR) (a)

  Range (%)     7.00-15.00%  7.00-11.00%  7.25-12.00%  6.25-11.00%

  Average (%)        10.09%       9.1 3%        9.03%        8.63%

  Change (b.p.)                     +96                       +40

Overall Cap
Rate (OAR) (a)

  Range (%)     5.00-11.00%  5.00-9.50%   4.50-10.50%  4.50-10.50%

  Average (%)         7.79%       6.99%         7.94%        7.52%

  Change                           +80                        +42

Residual
Cap Rate

  Range (%)     6.25-12.00%  6.00-10.00%  6.50-10.00%  6.25-10.00%

  Average (%)         8.63%        7.64%        8.31%        8.08%

  Change                            +99                       +23

                   Ware house                  Apartment

                2nd Qtr      1st Qtr      2nd Qtr        1st Qtr
                 2009         2009         2009           2009

Discount
Rate (IRR) (a)

  Range (%)     6.50-12.50%  6.00-11.00%  7.50-14.00%  6.00-14.00%

  Average (%)         9.02%        8.33%        9.73%        9.05%

  Change (b.p.)                     +69                       +68

Overall Cap
Rate (OAR) (a)

  Range (%)     5.50-10.00%  5.00-9.50%   5.50-9.50%   3.80-9.50%

  Average (%)         7.93%       7.13%        7.49%        6.88%

  Change                           +80                       +61

Residual
Cap Rate

  Range (%)     6.00-11.00%  6.00-9.50%   5.75-9.50%   5.00-9.00%

  Average (%)         8.25%       7.51%        7.87%        7.35%

  Change                           +74                       +52

(a.) Rate on unleveraged, all-cash transactions

DEFINITIONS: b.p.: basis points. Discount Rate (IRR): Internal rate of
return in all-cash transaction, based on annual year-end compounding.
Overall Cap Rate (OAR): Initial rate of return in all-cash transaction.
Residual Cap Rate: Overall capitalization rate used in calculation of
residual price; typically applied to the NOI in the year following the
forecast.

SOURCE: KORPACZ REAL ESTATE INVESTOR SURVEY. Personal survey of a cross
section of major institutional equity real estate market participants
conducted during April 2009 by PricewaterhouseCoopers LLP. For complete
information on results of these and other markets covered in the
Survey, contact PricewaterhouseCoopers LLP, PO Box 988; Florham Park,
New Jersey 07932

Conventional Home Mortgage Rates by Metropolitan Area (%)

                    2nd Q 2009  2nd Q 2008  2nd Q 2007

Atlanta                4.92        6.11        6.34

Boston #               4.94        5.99        6.31

Chicago #              5.18        6.11        6.62

Cleveland #            5.17        6.07        6.37

Dallas-Fort Worth      4.96        6.19        6.44

Denver #               5.03        6.11        6.39

Detroit #              5.10        6.17        6.73

Houston #              5.12        6.23        6.61

Indianapolis           5.09        6.33        6.65

Kansas City            5.09        5.93        6.24

Los Angeles #          5.00        6.16        6.39

Miami #                5.17        6.34        6.68

Milwaukee-Racine       5.03        6.27        6.52

                    1st Q 2009  1st Q 2008  1st Q 2007

Minneapolis            5.04        6.11        6.37

New York #             4.96        6.09        6.34

Philadelphia #         5.05        6.09        6.34

Phoenix                5.19        6.27        6.44

Pittsburgh             4.96        5.93        6.19

Portland #             4.98        6.11        6.27

St. Louis              5.07        6.22        6.53

San Diego              5.05        6.17        6.32

San Francisco #        5.02        6.19        6.37

Seattle #              5.03        6.06        6.42

Tampa                  5.08        6.26        6.54

Washington, D.C. #     5.00        6.17        6.47

# Consolidated Metropolitan Statistical area

Conventional Home Mortgage Terms

                           Jun.    Dec.    Jun.   Dec.   Jun.   Jun.
                           2009    2008    2008   2007   2007   2006

New House Loans- U.S.
Averages

Interest rate (%)          5.17   5.67    6.13    6.21   6.54   6.79

Term (years) [paragraph]   29.0   29.1    29.1    29.2   29.5   29.4

Loan ratio (%)             72.9   74.9    75.6    79.4   76.7   75.0

Price (thou. $)           344.0  351.6   352.7   347.7  357.9  355.5

Used House Loans-U.S.
Averages

Interest rate (%)          5.16   5.59    6.28    6.31   6.63   6.69

Term (years)               28.4   28.5    28.3    28.9   29.7   28.8

Loan ratio (%)             74.6   75.1    77.3    80.6   80.4   76.5

Price (thou. $)           328.0  284.9   310.3   280.0  297.9  306.9


For continuously updated economic indicators Economic indicators

The key statistics of the economy that reveal the direction the economy is heading in; for example, the unemployment rate and the inflation rate.
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RFC 1591.
.
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No portion of this article can be reproduced without the express written permission from the copyright holder.
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