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National market indicators.

NATIONAL MARKET INDICATORS

                                     Regional Mall

                               1st Qtr.        4th Qtr.
                                 2002            2001

Discount Rate (IRR) (a)

  Range                     10.25 - 13.00%  10.00 - 13.00%
  Average                       11.63%          11.58%
  Change (b.p.)                                   +5

Overall Cap Rate (OAR) (a)

  Range                     7.50% - 10.50%  7.50% - 10.50%
  Average                       8.94%           9.02%
  Change (b.p.)                                   -8

Residual Cap Rate

  Range                     8.00% - 10.50%  8.00% - 10.50%
  Average                       9.38%           9.33%
  Change (b.p.)                                   +5

                                       CBD Office

                               1st Qtr.        4th Qtr.
                                 2002            2001

Discount Rate (IRR) (a)

  Range                     9.75% - 13.50%  9.00% - 13.50%
  Average                       11.35%          11.26%
  Change (b.p.)                                   +9

Overall Cap Rate (OAR) (a)

  Range                     7.00% - 12.00%  8.00% - 12.00%
  Average                       9.58%           9.49%
  Change (b.p.)                                   +9

Residual Cap Rate

  Range                     8.50% - 12.00%  8.00% - 12.00%
  Average                       9.74%           9.64%
  Change (b.p.)                                  +10

                                       Industrial

                               1st Qtr.        4th Qtr.
                                 2002            2001

Discount Rate (IRR) (a)

  Range                     9.50% - 15.00%  9.50% - 15.00%
  Average                       11.20%          11.15%
  Change (b.p.)                                   +5

Overall Cap Rate (OAR) (a)

  Range                     8.00% - 11.00%  8.00% - 11.00%
  Average                       9.25%           9.14%
  Change (b.p.)                                  +11

Residual Cap Rate

  Range                     8.50% - 11.00%  8.50% - 11.00%
  Average                       9.60%           9.48%
  Change (b.p.)                                  +12

                                        Apartment

                               1st Qtr.         4th Qtr.
                                 2002             2001

Discount Rate (IRR) (a)

  Range                     10.00% - 15.00%  9.75% - 15.00%
  Average                       11.38%           11.49%
  Change (b.p.)                                   -11

Overall Cap Rate (OAR) (a)

  Range                     7.25% - 10.00%   7.25% - 10.00%
  Average                        8.56%           8.57%
  Change (b.p.)                                    -1

Residual Cap Rate

  Range                     7.50% - 11.50%   7.50% - 11.50%
  Average                        9.01%           9.02%
  Change (b.p.)                                    -1

Definitions

(a)Rate on unleveraged, all-cash transactions.

b.p. basis points

Discount Rate (IRR). Internal rate of return on equity in an all-cash
transaction, based on annual year-end compounding; formerly termed the
Free and Clear Equity in the Korpacz Survey.

Overall Capitalization Rate (OAR). Initial cash-on-cash rate of return
on the equity investment in an all-cash transaction; formerly termed the
Free and Clear Equity Cap Rate in the Korpacz Survey.

Residual Cap Rate. Overall capitalization rate used in calculation of
residual price at conclusion of forecast period.

Source: Korpacz Real Estate Investor Survey. Personal survey of a cross
section of major institutional equity real estate market participants
conducted during January 2002 by PricewaterhouseCoopers, LLP. For
complete information on results of these and other markets covered in
the survey, contact PricewaterhouseCoopers, LLP, 1747 Veterans Memorial
Highway, Suite 48, Islandia, NY 11722, 631-234-5143.
COPYRIGHT 2002 The Appraisal Institute
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2002 Gale, Cengage Learning. All rights reserved.

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Publication:Valuation Insights & Perspectives
Article Type:Brief Article
Geographic Code:1USA
Date:Mar 22, 2002
Words:438
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