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National market indicators.

                                     Regional Mall
                            2nd Qtr.          1st Qtr.
                            2004              2004

Discount Rate (IRR) (a)
  Range                      8.50%-12.00%       8.50%-12.00%
  Average                   10.29%             10.43%
  Change (b.p.)                               -14
Overall Cap Rate (OAR) (a)
  Range                      5.50%-9.50%        6.50%-9.50%
  Average                    7.96%              8.11%
  Change (b.p.)                               -15
Residual Cap Rate
  Range                      7.00%-10.00%       7.00%-10.00%
  Average                    8.50%              8.61%
  Change (b.p.)                               -11

                                    CBD Office
                            2nd Qtr.          1st Qtr.
                            2004              2004

Discount Rate (IRR) (a)
  Range                      8.00%-12.25%       8.50%-12.25%
  Average                   10.25%             10.51%
  Change (b.p.)                               -26
Overall Cap Rate (OAR) (a)
  Range                      6.00%-10.50%       6.00%-10.50%
  Average                    8.55%              8.77%
  Change (b.p.)                               -22
Residual Cap Rate
  Range                      7.50%-11.00%       7.50%-11.00%
  Average                    9.25%              9.27%
  Change (b.p.)                                -2

                                      Warehouse
                            2nd Qtr.         1st Qtr.
                            2004             2004

Discount Rate (IRR) (a)
  Range                     8.00%-11.50%       8.00%-11.50%
  Average                   9.53%              9.64%
  Change (b.p.)                              -11
Overall Cap Rate (OAR) (a)
  Range                     6.50%-10.00%       7.00%-10.25%
  Average                   8.35%              8.45%
  Change (b.p.)                              -10
Residual Cap Rate
  Range                     7.00%-11.00%       7.50%-11.00%
  Average                   8.89%              8.98%
  Change (b.p.)                               -9

                                     Apartment
                            2nd Qtr.        1st Qtr.
                            2004            2004

Discount Rate (IRR) (a)
  Range                     7.50%-12.50%      8.00%-12.50%
  Average                   9.77%             9.95%
  Change (b.p.)                             -18
Overall Cap Rate (OAR) (a)
  Range                     5.25%-9.25%       5.50%-9.25%
  Average                   7.13%             7.25%
  Change (b.p.)                             -12
Residual Cap Rate
  Range                     6.00%-9.50%       6.00%-9.50%
  Average                   7.93%             8.05%
  Change (b.p.)                             -12

(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 April 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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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2004 Gale, Cengage Learning. All rights reserved.

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Publication:Valuation Insights & Perspectives
Date:Jun 22, 2004
Words:408
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