Prosper during a slow economic cycle!

With the economy having shifted from frenzied overdrive to a more stable and sustainable level, these should continue to be positive times for prudent owner-operators of well-located, Class-A multi-tenanted commercial office properties in Fairfield and Westchester Counties.

Since practically no new suburban office product has been built in these markets during the past 12 years (and no new suburban office construction will be delivered for at least the next few years), we at W&M Properties see stability for existing Class-A properties -- especially those whose owners have limited leverage and who have invested in capital upgrades and expanded amenities.

Fairfield became Connecticut's most populous county in the 1990s, during which time Stamford's population grew by almost eight per cent, according to U.S. census data recently, reported by The New York Times (March 20, 2001). The area's growth was attributed to a number of factors, including employment opportunities resulting from the growth of local businesses and from New York City-based businesses having set up satellite/regional operations from new offices within Fairfield and Westchester Counties. Separate from those benefits directly traceable to the sustained expansion of the financial services sector, the City of Stamford is now deriving significant economic benefit from its having established itself as the 24/7 business, retail, entertainment, downtown residential, and transportation center of Fairfield County.

With these factors in mind, W&M recently expanded its suburban portfolio by acquiring First Stamford Place, a three-building, 810,000 SF multi-tenanted, Class-A office complex located adjacent to the Stamford Transportation Center.

Attractions of the Suburbs: While much of the recent and projected growth in Fairfield and Westchester Counties stems from the expansion of local businesses, spillover from Manhattan will likely grow. Fewer and fewer companies absolutely need a Manhattan presence (or as large a Manhattan presence) and will more than ever before be attracted by the markedly lower comparative rental rates available here, as well as by our terrific quality of life and education, and our highly skilled labor force.

Average per-square-foot rents for Class-A space range from the upper $20s to the mid-$30s in Westchester, and from the upper $30s to the upper $40s in lower Fairfield. The significantly higher -- up to three-digit -- rental rates charged by Midtown Manhattan landlords for comparable space only enhances the appeal of the suburbs. While Westchester and Fairfield Counties are already easily accessible to New York City, the recent completion of improvements to mass transit and to the transportation infrastructure of both counties. along with the recent announcement/initiation of additional improvements, also strengthens their attractiveness to companies seeking to grow or relocate here.

What's more, the storm clouds hovering over interne and telecommunications industries reveal a silver lining to many businesses in the suburbs: The recent layoffs in those sectors have been boon to employers here, widening their pool of talented employees.

W&M Properties is well positioned to take advantage of opportunities presented by current conditions in Fairfield and Westchester. The acquisition of First Stamford Place, completed in January, means that W&M now operates the largest privately owned, Class-A, multi-tenanted suburban office portfolio in Westchester and Fairfield -- nearly 2.5 million square feet. The synergistic opportunities available within our broadened suburban portfolio better enable us to accommodate the fluctuating location and space requirements of a wider spectrum of tenants.

W&M's Properties are all controlled by the Malkin family, a financially stable owner/operator with a long history of success and reliability important to its investors and tenants. We seek out credit-worthy companies in a variety of fields to ensure a stable and diverse tenant base, which helps to insulate us from economic fluctuations.

Besides financial stability, W&M's solid footing also stems from the locations of its properties and the upgrades and expanded amenities they provide. W&M oversees ownership's investments in major capital improvement and expanded amenities programs -- for example, $12 million recently invested at 500 Mamaroneck Avenue in Harrison, and $8 million in upcoming property upgrades at First Stamford Place -- to ensure that its properties are tops in every respect.

All are located at or near major transportation centers and high a networks, with tenants-only shuttle bus service available to nearby train stations and shopping centers. All are wired to provide state-of-the-art voice, video and data transmission services.

In addition, we provide 24-hour security and a host of amenities considered essential to attract and retain workers, including tenants-only, state-of-the-art fitness centers, conference facilities, in-house or on-campus dining, sundry shops, and ATMs.

We also make it easy for tenants, prospects and brokers to do business with us by providing complete turnkey service. We negotiate leases and work with prospective tenants on the design of their spaces; our affiliate, W&M Construction, constructs the offices to tenants' specifications. Our in-house cleaning operation provides a full range of housekeeping services.

We reach out to our tenants to make sure that their changing space needs are met, by helping them find additional or other space within our buildings or, if necessary, by negotiating lease buyouts for those requiring less space. And we pay broker commissions in full as soon, as leases are signed.