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National market indicators.

                        Regional Mall            CBD Office
                   1st Qtr.        4th Qtr.      1st Qtr.
                     2004            2003          2004

Discount Rate (IRR) (a)
  Range           8.50%-12.00%    8.5%-12.00%    8.50%-12.25%
  Average        10.43%          10.46%         10.51%
  Change (b.p.)                  -3

Overall Cap Rate (OAR) (a)
  Range           6.50%-9.50%     6.50%-9.50%    6.00%-10.50%
  Average         8.11%           8.11%          8.77%
  Change (b.p.)                   0

Residual Cap Rate
  Range           7.00%-10.00%    7.00%-10.00%   7.50%-11.00%
  Average         8.61%           8.77%          9.27%
  Change (b.p.)                 -16

                   CBD Office             Warehouse
                   4th Qtr.        1st Qtr.       4th Qtr.
                     2003            2004           2003

Discount Rate (IRR) (a)
  Range            9.00%-12.25%  8.00%-11.50%    8.50%-11.50%
  Average         10.60%         9.64%           9.88%
  Change (b.p.)   -9                           -24

Overall Cap Rate (OAR) (a)
  Range            6.00%-10.75%  7.00%-10.25%    7.25%-10.25%
  Average          9.02%         8.45%           8.51%
  Change (b.p.)  -25                            -6

Residual Cap Rate
  Range            7.75%-11.00%  7.50%-11.00%    7.50%-11.00%
  Average          9.33%         8.98%           9.10%
  Change (b.p.)   -6                           -12

                         Apartment
                   1st Qtr.       4th Qtr.
                     2004           2003

Discount Rate (IRR) (a)
  Range          8.00%-12.50%    9.00%-12.50%
  Average        9.95%          10.22%
  Change (b.p.)                -27

Overall Cap Rate (OAR) (a)
  Range          5.50%-9.25%     5.50%-9.25%
  Average        7.25%           7.45%
  Change (b.p.)                -20

Residual Cap Rate
  Range          6.00%-9.50%     6.00%-9.50%
  Average        8.05%           8.03%
  Change (b.p.)                 +2

(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[R]. Personal survey of a
cross section of major institutional equity real estate market
participants conducted during January 2004 by PricewaterhouseCoopers
LLP. For complete information on results of these and other markets
covered in the Survey, contact PricewaterhouseCoopers LLP, 615 Franklin
Turnpike, Ridgewood, NJ 07450, 201-689-3130.
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Publication:Valuation Insights & Perspectives
Date:Mar 22, 2004
Words:383
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