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National market indicators.

                        Regional Mall               CBD Office
                    4th Qtr.          3rd Qtr.       4th Qtr.
                      2002              2002           2002

Discount Rate
  (IRR) (a)
  Range            10.00-13.00%      10.25-13.00%    10.00%-13.00%
  Average          11.40%            11.44%          11.17%
  Change (b.p.)                      -4
Overall Cap Rate
  (OAR) (a)
  Range             7.25%-10.50%      7.60%-10.50%    7.25%-12.00%
  Average           8.78%             8.89%           9.50%
  Change (b.p.)                     -11
Residual Cap Rate
  Range             8.25%-10.50%      8.25%-10.50%    8.50%-12.00%
  Average           9.52%             9.52%           9.76%
  Change (b.p.)                       0

                   CBD Office            Warehouse (1)
                   3rd Qtr.        4th Qtr.       3rd Qtr.
                    2002            2002           2002

Discount Rate
  (IRR) (a)
  Range            10.00%-13.00%    9.50%-12.00%   9.75%-12.00%
  Average          11.17%          10.57%         10.59%
  Change (b.p.)     0                             -2
Overall Cap Rate
  (OAR) (a)
  Range             7.25%-12.00%    8.00%-11.00%   8.00%-10.00%
  Average           9.49%           8.93%          8.93%
  Change (b.p.)    +1                              0
Residual Cap Rate
  Range             8.50%-12.00%    8.00%-11.00%   8.50%-11.00%
  Average           9.72%           9.48%          9.52%
  Change (b.p.)    +4                             -4

                          Apartment
                   4th Qtr.        3rd Qtr.
                    2002            2002

Discount Rate
  (IRR) (a)
  Range             9.50%-15.00%     9.50%-15.00%
  Average          11.09%           11.20%
  Change (b.p.)                    -11
Overall Cap Rate
  (OAR) (a)
  Range             6.50%-10.00%     6.50%-10.00%
  Average           8.26%            8.36%
  Change (b.p.)                    -10
Residual Cap Rate
  Range             7.00%-10.50%     7.00%-10.50%
  Average           8.66%            8.77%
  Change (b.p.)                    -11

(a) Rate on unleveraged, all-cash transactions
Definitions
b.p. basis points
Discount Rate (IRR). Internal rate of return on equity in an all-cash
transaction, based on annual year-end compounding
Overall Cap Rate (OAR). Initial cash-on-cash rate of return on the
equity investment in an all-cash transaction
Residual Cap Rate: Overall capitalization rate used in calculation of
residual price at conclusion of forecast period
(1) Starting in Second Quarter 2002, the National Industrial Market was
separated into two distinct components: Flex/R & D and Warehouse.
Source: Korpacz Real Estate Investor Survey. Personal survey of a cross
section of major institutional equity real estate market participants
conducted during October 2002 by PricewaterhouseCoopers LLP. For
complete information on results of these and other markets covered in
the Survey, contact PricewaterhouseCoopers LLP, 1747 Veterans Hwy.,
Suite 48, Islandia, NY 11722, 631-234-5143.
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Publication:Valuation Insights & Perspectives
Date:Jan 1, 2003
Words:405
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