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National market indicators.

National Market Indicators

                                     Regional Mall
                               1st Qtr.        4th Qtr.
                                 2003            2002

Discount Rate (IRR) (a)
  Range                     10.00 - 12.50%  10.00 - 13.00%
  Average                       11.21%          11.40%
  Change (b.p.)                                  -19

Overall Cap Rate (OAR) (a)
  Range                     7.25% - 10.00%  7.25% - 10.50%
  Average                        8.73%          8.78%
  Change (b.p.)                                   -5

Residual Cap Rate
  Range                     8.25% - 10.50%  8.25% - 10.50%
  Average                        9.42%          9.52%
  Change (b.p.)                                  -10

                                       CBD Office
                               1st Qtr.        4th Qtr.
                                 2003            2002

Discount Rate (IRR) (a)
  Range                     9.00 - 12.50%   10.00% - 13.0
  Average                       10.92%          11.17%
  Change (b.p.)                                  -25

Overall Cap Rate (OAR) (a)
  Range                     7.25% - 12.00%  7.25% - 12.00%
  Average                       9.40%           9.50%
  Change (b.p.)                                  -10

Residual Cap Rate
  Range                     8.50% - 12.00%  8.50% - 12.00%
  Average                       9.70%           9.76%
  Change (b.p.)                                   -6

                                       Warehouse
                               1st Qtr.        4th Qtr.
                                 2003            2002

Discount Rate (IRR) (a)
  Range                     9.00% - 12.00%  9.50% - 12.00%
  Average                       10.42%          10.57%
  Change (b.p.)                                  -15

Overall Cap Rate (OAR) (a)
  Range                     7.50% - 11.00%  8.00% - 11.00%
  Average                       8.84%           8.93%
  Change (b.p.)                                   -9

Residual Cap Rate
  Range                     8.00% - 11.00%  8.00% - 11.00%
  Average                       9.38%           9.48%
  Change (b.p.)                                  -10

                                       Apartment
                               1st Qtr.        4th Qtr.
                                 2003            2002

Discount Rate (IRR) (a)
  Range                     9.00% - 15.00%  9.50% - 15.00%
  Average                       10.88%          11.09%
  Change (b.p.)                                  -21

Overall Cap Rate (OAR) (a)
  Range                     6.00% - 10.00%  6.50% - 10.00%
  Average                       8.14%           8.26%
  Change (b.p.)                                  -12

Residual Cap Rate
  Range                     7.00% - 10.00%  7.00% - 10.50%
  Average                       8.47%           8.66%
  Change (b.p.)                                  -19

(a) Rate on unleveraged, all-cash transactions

Definitions

b.p. basis points

Discount Rate (IRR). Internal rate of return in an all-cash transaction,
based on annual year-end compounding

Overall Cap Rate (OAR). Initial rate of return in an 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 January 2003 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:Mar 22, 2003
Words:412
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