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National market indicators.

NATIONAL MARKET INDICATORS

                                   Regional Mall

                               2nd Qtr.       1st Qtr.
                                 2003           2003

Discount Rate (IRR) (a)
  Range                      10.00-12.50%   10.00-12.50%
  Average                       11.19%         11.21%
  Change (b.p.)                                  -2

Overall Cap Rate (OAR) (a)
  Range                      7.25%-10.00%   7.25%-10.00%
  Average                       8.63%          8.73%
  Change (b.p.)                                 -10

Residual Cap Rate
  Range                      8.00%-10.50%   8.25%-10.50%
  Average                       9.10%          9.42%
  Change (b.p.)                                 -32

                                     CBD Office

                               2nd Qtr.       1st Qtr.
                                 2003           2003

Discount Rate (IRR) (a)
  Range                      9.00-13.00%    9.00%-12.50%
  Average                       10.88%         10.92%
  Change (b.p.)                                  -4

Overall Cap Rate (OAR) (a)
  Range                      7.25%-11.00%   7.25%-12.00%
  Average                       9.34%          9.40%
  Change (b.p.)                                 -6

Residual Cap Rate
  Range                      8.00%-11.50%   8.50%-12.00%
  Average                       9.56%          9.70
  Change (b.p.)                                 -14

                                     Warehouse

                               2nd Qtr.       1st Qtr.
                                 2003           2003

Discount Rate (IRR) (a)
  Range                      9.00%-11.50%   9.00%-12.00%
  Average                       10.20%         10.42%
  Change (b.p.)                                  -22

Overall Cap Rate (OAR) (a)
  Range                      7.50%-11.00%   7.50%-11.00%
  Average                       8.82%          8.84%
  Change (b.p.)                                  -2

Residual Cap Rate
  Range                      8.00%-11.00%   8.00%-11.00%
  Average                       9.34%          9.38%
  Change (b.p.)                                  -4

                                     Apartment

                               2nd Qtr.       1st Qtr.
                                 2003           2003

Discount Rate (IRR) (a)
  Range                      9.00%-13.00%   9.00%-15.00%
  Average                       10.51%         10.88%
  Change (b.p.)                                  -37

Overall Cap Rate (OAR) (a)
  Range                      5.50%-9.50%    6.00%-10.00%
  Average                       7.92%          8.14%
  Change (b.p.)                                 -22

Residual Cap Rate
  Range                      6.50%-10.00%   7.00%-10.00%
  Average                       8.30%          8.47%
  Change (b.p.)                                 -17

(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 April 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
Article Type:Illustration
Geographic Code:1USA
Date:Jun 22, 2003
Words:409
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