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Previous: PENN MUTUAL VARIABLE ANNUITY ACCOUNT III, 24F-2NT, 2000-03-17 |
Next: PENN SERIES FUNDS INC, 24F-2NT, 2000-03-17 |
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
(AMENDMENT NO. 1)
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
March 3, 2000 (Date of earliest event reported)
CORNERSTONE PROPERTIES INC.
(Exact name of Registrant as specified in its charter)
Nevada 1-12861 74-2170858
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
Cornerstone Properties Inc.
Tower 56
126 East 56th Street
New York, NY 10022
(Address of principal executive offices)
(212) 605-7100
(Registrant's telephone number, including area code)
<PAGE>
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS
Exhibit Number Exhibit Description
-------------- -------------------
99.1 Text of revised supplementary materials.
-2-
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
Cornerstone has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CORNERSTONE PROPERTIES INC.
(Registrant)
Date: March 17, 2000 By: /s/ Kevin P. Mahoney
--------------------------------------
Name: Kevin P. Mahoney
Title: Senior Vice President and Chief
Financial Officer
-3-
<PAGE>
EXHIBIT INDEX
Exhibit Number Exhibit Description
-------------- -------------------
99.1 Text of revised supplementary materials.
<PAGE>
Exhibit 99.1
[LOGO]
FOURTH QUARTER
1999
SUPPLEMENTAL PACKAGE
THIS SUPPLEMENTAL PACKAGE CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING
OF THE FEDERAL SECURITIES LAWS. FORWARD-LOOKING STATEMENTS ARE INHERENTLY
SUBJECT TO RISKS AND UNCERTAINTIES, MANY OF WHICH CANNOT BE PREDICTED WITH
ACCURACY, THAT COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF
CORNERSTONE TO DIFFER MATERIALLY FROM THOSE REFLECTED IN SUCH FORWARD-LOOKING
STATEMENTS. INFORMATION CONTAINED IN THIS SUPPLEMENTAL PACKAGE REGARDING CURRENT
AND FUTURE MARKET CONDITIONS IS BASED ON CORNERSTONE'S ASSESSMENT OF REAL ESTATE
MARKETS AS OF THIS DATE AND IS SUBJECT TO THE UNCERTAINTIES INHERENT IN SUCH AN
ASSESSMENT. IN PARTICULAR, BUT NOT EXCLUSIVELY, NATIONAL AND REGIONAL ECONOMIC
CONDITIONS, THE RATE OF NEW CONSTRUCTION, AND DEMAND AND SUPPLY IN A GIVEN
MARKET WILL AFFECT LEASING ACTIVITY, PROJECTED RENTS AND THE COST OF LEASE
RENEWALS.
MARCH 3, 2000
<PAGE>
MINORITY SHARING IN CASH FLOWS AND RESIDUAL PROCEEDS
Seven of the Company's properties are held in partnerships which allow
the Company's partners to participate in the cash flows of their respective
properties. The following discussion provides the details of partner's
participation in the cash flow of each of the respective properties.
Norwest Center
Under the partnership agreement, cash flow is used first to pay
operating and capital expenditures, then debt service on the mortgage note. The
remaining cash flow is paid first to Cornerstone, as a 7% cumulative preference
return on its capital base of $92.3 million ($6,461,000), and then any remaining
cash flow is split 50% to Cornerstone and 50% to their partner, Sixth &
Marquette Limited Partnership ("S&M"). Should cash flow be insufficient to pay
the preference return ("Preference Deficit"), it will accumulate and earn
interest at 7%. Any Preference Deficit will be paid as the first priority
payment after debt service. Cash flow and earnings for the twelve months of 1999
were split 74.4% to Cornerstone and 25.6% to S&M. Sales proceeds from Norwest
Center will be split as follows as of December 31, 1999:
1) To Debt $110.0 million
2) To Cornerstone 92.3 million
3) To Cornerstone 9.3 million
4) To Cornerstone 1.0 million
5) To S&M 31.8 million
6) The remaining proceeds will be split 50/50 among the two
partners.
Washington Mutual Tower
Under the partnership agreement, cash flow is used first to pay
operating and capital expenditures, then debt service on the mortgage note. The
remaining cash flow is paid first to Cornerstone as a 9.53% preference return on
its capital base of $47.0 million ($4,479,000); next to pay the Preference
Deficit on the second preference return (currently $9.2 million); then to
Cornerstone as an 8% second preference return on its capital base of $100.0
million ($8,000,000).
6
<PAGE>
Any remaining cash flow is split 50% to Cornerstone and 50% to 1212
Partnership, Cornerstone's partner. The cumulative Preference Deficit earns
interest at a rate of 8% until it is repaid. 1212 Partnership does not currently
share in the cash flow from Washington Mutual Tower. With regard to the sale of
the building, the Company will receive the first $156.8 million of proceeds
after repayment of the $79.1 million mortgage ($235.9 million in total
proceeds). Any proceeds above this amount will be split 50/50 with Cornerstone's
partners.
MINORITY SHARING IN CASH FLOWS AND RESIDUAL PROCEEDS (continued)
191 Peachtree Street
Under the partnership agreement, cash flow is used first to pay
operating and capital expenditures, then debt service on the mortgage note.
Cornerstone receives the remaining cash flow until such time as its cumulative
undistributed preferred return ($15.3 million as of 12/31/99) has been
reimbursed. Excess cash flow will be split 80% to Cornerstone and 20% to CH
Associates, Ltd. Sales proceeds from 191 Peachtree Street will be split as
follows as of December 31, 1999:
1) To Debt $ 1.8 million
2) To Cornerstone (as partial
holder Of the debt) $ 156.7 million
3) To Cornerstone for its
undistributed preferred return $ 15.3 million
4) To Cornerstone for its priority
capital contribution $ 145.0 million
500 Boylston and 222 Berkeley Street
Distributions of cash flows and sales proceeds are shared in proportion
to Cornerstone's 91.5% partnership interest and Hines' 8.5% partnership
interest.
One Post Street, San Francisco
Distributions of cash flows and sales proceeds are shared in proportion
to Cornerstone's 50.0% interest and McKesson Corporation's 50.0% interest. This
property is accounted for using the equity method of accounting.
120 Montgomery Street, San Francisco
Distributions of cash flows and sales proceeds are shared in proportion
to Cornerstone's 66.7% partnership interest and Sansome Partners III, L.P.'s
33.3% partnership interest.
<PAGE>
PORTFOLIO DATA
<PAGE>
- --------------------------------------------------------------------------------
REGIONAL SUMMARY
(As of 12/31/99)
<TABLE>
<CAPTION>
Square Feet % Square Feet % NOI MSA's
-----------------------------------------------------------------------
<S> <C> <C> <C> <C>
ALL PROPERTIES 17,981,409 16
CBD 8,519,005 47.4% 53.8%
Suburban 9,462,404 52.6% 46.2%
</TABLE>
REGIONAL DISTRIBUTION BASED ON NOI AND SQUARE FEET
(As of 12/31/99)
<TABLE>
<CAPTION>
CBD SUBURBAN
------------------------------------------------------------------------------------
Square Feet % Square Feet % NOI Square Feet % Square Feet % NOI
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Northeast 3,599,736 20.0% 26.1% 657,466 3.7% 4.1%
Central 0 0.0% 0.0% 976,079 5.4% 5.0%
Pacific 1,431,982 8.0% 6.8% 6,944,372 38.6% 33.7%
West 2,271,999 12.6% 13.2% 451,789 2.5% 1.7%
Southeast 1,215,288 6.8% 7.6% 432,698 2.4% 1.6%
- --------------------------------------------------------------------------------------------------
TOTAL 8,519,005 47.4% 53.8% 9,462,404 52.6% 46.2%
- --------------------------------------------------------------------------------------------------
<CAPTION>
ALL PROPERTIES
------------------------------------------
Square Feet % Square Feet % NOI
------------------------------------------
<S> <C> <C> <C>
Northeast 4,257,202 23.7% 30.2%
Central 976,079 5.4% 5.0%
Pacific 8,376,354 46.6% 40.6%
West 2,723,788 15.1% 14.9%
Southeast 1,647,986 9.2% 9.3%
- --------------------------------------------------------
TOTAL 17,981,409 100.0% 100.0%
- --------------------------------------------------------
</TABLE>
11
<PAGE>
- --------------------------------------------------------------------------------
REGIONAL SUMMARY OF MSAS
(As of 12/31/99)
<TABLE>
<CAPTION>
MSA STATE # BUILDINGS SQUARE FEET % SQUARE FEET % NOI
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 San Francisco CA 19 3,040,481 16.9% 16.9%
2 Boston MA 5 2,884,826 16.0% 20.1%
3 Atlanta GA 2 1,647,986 9.2% 9.3%
4 Oakland CA 12 1,601,849 8.9% 6.1%
5 Seattle WA 5 1,469,741 8.2% 7.8%
6 San Jose CA 10 1,188,229 6.6% 6.8%
7 Minneapolis MN 1 1,117,439 6.2% 6.8%
8 Los Angeles CA 9 1,108,009 6.2% 6.0%
9 Washington D.C. DC,VA 5 993,411 5.5% 7.0%
10 Chicago IL 5 976,079 5.4% 5.0%
11 Orange County CA 3 710,115 3.9% 2.7%
12 San Diego CA 2 420,502 2.3% 1.2%
13 New York NY 2 378,965 2.1% 3.1%
14 Ventura CA 3 234,198 1.3% 0.9%
15 Salt Lake City UT 1 136,608 0.8% 0.3%
16 Sacremento CA 1 72,971 0.4% 0.1%
--------------------------------------------------------------------------------------------------------------
Total 85 17,981,409 100% 100%
--------------------------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
REVISED AS OF MARCH 14, 2000
- --------------------------------------------------------------------------------
OCCUPANCY SUMMARY
(as of 12/31/99)
<TABLE>
<CAPTION>
SUMMARY BY REGION
- --------------------------------------------------------------------------------------------------------------------------------
SQUARE FOOTAGE PERCENTAGE
OCCUPIED LEASED VACANT TOTAL OCCUPIED LEASED VACANT TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Central 898,799 37,266 40,014 976,079 92.1% 3.8% 4.1% 100.0%
Northeast 4,085,512 41,043 130,647 4,257,202 96.0% 1.0% 3.1% 100.0%
Southeast 1,604,354 8,148 35,484 1,647,986 97.4% 0.5% 2.2% 100.0%
Southwest - - - - n/a n/a n/a n/a
West 2,644,123 19,650 60,015 2,723,788 97.1% 0.7% 2.2% 100.0%
Pacific 7,927,626 86,720 267,508 8,281,854 95.7% 1.0% 3.2% 100.0%
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL (1) 17,160,414 192,827 533,668 17,886,909 95.9% 1.1% 3.0% 100.0%
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
SUMMARY CBD VS SUBURBAN
- --------------------------------------------------------------------------------------------------------------------------------
SQUARE FOOTAGE PERCENTAGE
OCCUPIED LEASED VACANT TOTAL OCCUPIED LEASED VACANT TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CBD 8,233,511 66,104 219,390 8,519,005 96.6% 0.8% 2.6% 100.0%
Suburban 8,926,903 126,723 314,278 9,367,904 95.3% 1.4% 3.4% 100.0%
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL (1) 17,160,414 192,827 533,668 17,886,909 95.9% 1.1% 3.0% 100.0%
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Excludes Pruneyard Inn square footage of 94,500 square feet
13
<PAGE>
- --------------------------------------------------------------------------------
10 LARGEST TENANTS - BASED ON ANNUALIZED BASE RENT
(as of 12/31/99)
<TABLE>
<CAPTION>
PERCENTAGE OF
AGGREGATE PERCENTAGE OF
WEIGHTED AVERAGE PORTFOLIO AGGREGATE AGGREGATE
NUMBER OF REMAINING LEASE ANNUALIZED RENTABLE OCCUPIED
TENANT (a) BUILDINGS TERM IN MONTHS (b) RENT (c) SQUARE FEET SQUARE FEET
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Norwest Corporation [Wells Fargo] 4 181 2.8% 795,424 4.6%
Massachusetts Financial Services 1 38 2.4% 328,540 1.9%
Hale & Dorr 1 162 2.4% 319,501 1.9%
Wachovia Bank 1 108 2.2% 380,442 2.2%
King & Spalding 1 118 2.0% 314,443 1.8%
The New England Life 2 331 1.3% 199,054 1.2%
Perkins Coie 1 132 1.2% 240,127 1.4%
Houghton Mifflin 1 86 1.1% 225,883 1.3%
PeopleSoft Corporation 1 105 1.0% 210,940 1.2%
McKesson 1 157 0.6% 132,476 0.8%
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL \ WEIGHTED AVERAGE (B) 123 17.2% 3,146,830 18.3%
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Actual tenant may be a susidiary of, or an entity affiliated with, the named
tenant.
(b) Weighted Average calculation based on aggregate rentable square footage
occupied by each tenant.
(c) Annualized Rent is the monthly contractual base rent under existing leases
as of December 31, 1999 multiplied by 12.
14
<PAGE>
REVISED AS OF MARCH 14, 2000
- --------------------------------------------------------------------------------
LEASE EXPIRATION
(as of 12/31/99)
<TABLE>
<CAPTION>
2000 AND
MONTH TO MONTH 2001 2002
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CENTRAL REGION TOTALS Square Feet (1) 80,970 49,850 97,110
% Square Feet (2) 8.3% 5.1% 9.9%
Annualized Rent (3) 2,253,772 1,687,984 2,961,215
Number of Leases 14 10 15
Rent Per Square Foot $ 27.83 $ 33.86 $ 30.49
- ------------------------------------------------------------------------------------------------------------------------------
NORTHEAST REGION TOTALS Square Feet (1) 87,644 373,255 545,046
% Square Feet (2) 2.1% 9.0% 13.1%
Annualized Rent (3) 3,250,895 18,345,149 19,806,301
Number of Leases 30 43 40
Rent Per Square Foot $ 37.09 $ 49.15 $ 36.34
- ------------------------------------------------------------------------------------------------------------------------------
SOUTHEAST REGION TOTALS Square Feet (1) 66,086 156,555 172,869
% Square Feet (2) 4.0% 9.5% 10.5%
Annualized Rent (3) 1,343,120 3,839,761 3,729,017
Number of Leases 18 17 11
Rent Per Square Foot $ 20.32 $ 24.53 $ 21.57
- ------------------------------------------------------------------------------------------------------------------------------
SOUTHWEST REGION TOTALS Square Feet (1) - - -
% Square Feet (2) 0.0% 0.0% 0.0%
Annualized Rent (3) - - -
Number of Leases - - -
Rent Per Square Foot $ - $ - $ -
- ------------------------------------------------------------------------------------------------------------------------------
WEST REGION TOTALS Square Feet (1) 189,901 160,389 290,002
% Square Feet (2) 7.0% 5.9% 10.6%
Annualized Rent (3) 5,716,611 3,435,951 6,614,751
Number of Leases 37 26 27
Rent Per Square Foot $ 30.10 $ 21.42 $ 22.81
- ------------------------------------------------------------------------------------------------------------------------------
PACIFIC REGION TOTALS Square Feet (1) 832,032 850,257 1,250,943
% Square Feet (2) 10.0% 10.3% 15.1%
Annualized Rent (3) 20,522,177 22,595,920 32,757,585
Number of Leases 177 149 187
Rent Per Square Foot $ 24.67 $ 26.58 $ 26.19
- ------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TOTALS Square Feet (1) 1,256,633 1,590,306 2,355,970
% Square Feet (2) 7.1% 8.9% 13.2%
Annualized Rent (3) 33,086,576 49,904,766 65,868,869
Number of Leases 276 245 280
Rent Per Square Foot $ 26.33 $ 31.38 $ 27.96
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
2003 2004 2005 2006 2007
- --------------------------------------------------------------------------------------------------------------------------------
CENTRAL REGION TOTALS 213,608 51,825 7,177 17,848 107,429
21.9% 5.3% 0.7% 1.8% 11.0%
6,204,791 1,415,529 201,824 426,152 2,874,154
21 8 2 3 5
$ 29.05 $ 27.31 $ 28.12 $ 23.88 $ 26.75
- --------------------------------------------------------------------------------------------------------------------------------
NORTHEAST REGION TOTALS 365,022 323,547 304,484 137,363 484,961
8.8% 7.8% 7.3% 3.3% 11.7%
14,586,834 12,584,983 12,113,187 5,823,427 20,012,589
41 37 16 11 24
$ 39.96 $ 38.90 $ 39.78 $ 42.39 $ 41.27
- --------------------------------------------------------------------------------------------------------------------------------
SOUTHEAST REGION TOTALS 88,700 68,847 25,392 503,585 -
5.4% 4.2% 1.5% 30.6% 0.0%
2,173,371 1,839,882 595,463 15,906,521 -
14 12 6 4 -
$ 24.50 $ 26.72 $ 23.45 $ 31.59 $ -
- --------------------------------------------------------------------------------------------------------------------------------
SOUTHWEST REGION TOTALS - - - - -
0.0% 0.0% 0.0% 0.0% 0.0%
- - - - -
- - - - -
$ - $ - $ - $ - $ -
- --------------------------------------------------------------------------------------------------------------------------------
WEST REGION TOTALS 567,617 416,243 72,122 13,471 149,389
20.8% 15.3% 2.6% 0.5% 5.5%
14,445,670 12,149,766 1,677,091 346,720 3,597,156
35 32 13 4 2
$ 25.45 $ 29.19 $ 23.25 $ 25.74 $ 24.08
- --------------------------------------------------------------------------------------------------------------------------------
PACIFIC REGION TOTALS 1,201,684 1,049,810 453,316 497,436 585,407
14.5% 12.7% 5.5% 6.0% 7.1%
34,499,035 32,039,874 13,729,058 12,714,592 16,499,333
172 137 49 29 15
$ 28.71 $ 30.52 $ 30.29 $ 25.56 $ 28.18
- --------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TOTALS 2,436,631 1,910,272 862,491 1,169,703 1,327,186
13.7% 10.7% 4.9% 6.6% 7.5%
71,909,702 60,030,034 28,316,623 35,217,413 42,983,233
283 226 86 51 46
$ 29.51 $ 31.42 $ 32.83 $ 30.11 $ 32.39
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
2009 AND
2008 BEYOND TOTALS
- ----------------------------------------------------------------------------------------
CENTRAL REGION TOTALS 110,201 162,781 898,799
11.3% 16.7% 92.1%
3,357,300 3,449,772 24,832,494
2 1 81
$ 30.47 $ 21.19 $ 24.22
- ----------------------------------------------------------------------------------------
NORTHEAST REGION TOTALS 278,976 1,185,214 4,085,512
6.7% 28.6% 98.4%
14,044,901 51,307,788 171,876,056
11 28 281
$ 50.34 $ 43.29 $ 42.07
- ----------------------------------------------------------------------------------------
SOUTHEAST REGION TOTALS 495,736 26,584 1,604,354
30.1% 1.6% 97.4%
13,607,902 522,985 43,558,023
4 2 88
$ 27.45 $ 19.67 $ 27.15
- ----------------------------------------------------------------------------------------
SOUTHWEST REGION TOTALS - - -
0.0% 0.0% 0.0%
- - -
- - -
$ - $ - $ -
- ----------------------------------------------------------------------------------------
WEST REGION TOTALS 366 784,623 2,644,123
0.0% 28.8% 97.1%
9,842 27,918,762 75,912,321
1 8 185
$ 26.89 $ 35.58 $ 28.71
- ----------------------------------------------------------------------------------------
PACIFIC REGION TOTALS 554,594 652,147 7,927,626
6.7% 7.9% 95.7%
16,262,775 16,431,327 218,051,676
22 56 993
$ 29.32 $ 25.20 $ 27.51
- ----------------------------------------------------------------------------------------
PORTFOLIO TOTALS 1,439,873 2,811,349 17,160,414
8.1% 15.8% 96.5%
47,282,720 99,630,634 534,230,569
40 95 1,628
$ 32.84 $ 35.44 $ 31.13
- ----------------------------------------------------------------------------------------
</TABLE>
(1) Total net rentable square feet represented by expiring leases.
(2) Percentage of total net rentable feet represented by expiring leases.
(3) Annualized Rent is the monthly contractual rent under existing leases as
of December 31, 1999 multiplied by 12. This amount reflects total base
rent before any rent abatements, but includes expense reimbursements.
Total rent abatements for leases in effect as of December 31, 1999 for the
12 months ending December 31, 2000 are approximately $7.0 million.
15
<PAGE>
REVISED AS OF MARCH 14, 2000
- --------------------------------------------------------------------------------
ROLLOVER OF TOP 10 MARKETS - BASED ON ANNUALIZED RENT
(as of 12/31/99)
<TABLE>
<CAPTION>
EXPIRATION YEAR
------------------------------------------------------------------------------------
2000 2001 2002 TOTAL
------------------------------------------------------------------------------------
PERCENTAGE OF TOTAL PORTFOLIO RENT EXPIRING
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Boston, MA 0.09% 1.52% 3.12% 4.73%
San Francisco, CA 0.95% 0.75% 1.77% 3.47%
Atlanta, GA 0.26% 0.75% 0.73% 1.74%
Seattle, WA 0.36% 0.40% 1.04% 1.79%
Washington DC 0.30% 0.62% 0.18% 1.11%
Minneapolis, MN 0.59% 0.06% 0.18% 0.83%
San Jose, CA 0.40% 0.80% 0.51% 1.70%
Oakland, CA 0.89% 0.97% 1.49% 3.35%
Los Angeles, CA 0.75% 1.07% 1.10% 2.92%
Chicago, IL 0.44% 0.33% 0.58% 1.35%
</TABLE>
16
<PAGE>
REVISED AS OF MARCH 14, 2000
- --------------------------------------------------------------------------------
PORTFOLIO BY SIC CODE
(As of 12/31/99)
<TABLE>
<CAPTION>
PERCENT OF TOTAL
SIC CODE STANDARD INDUSTRIAL CLASSIFICATION OCCUPIED SQUARE FEET OCCUPIED PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
73 Business Services 2,415,263 14.1%
81 Legal Services 2,969,877 17.3%
60 Financial Institutions 1,895,294 11.0%
48 Communications 410,585 2.4%
87 Engineering & Management/ Consulting Services 1,474,532 8.6%
62 Securities & Commodities Brokers 1,822,850 10.6%
63 Insurance Carriers 1,495,508 8.7%
91 Government 122,408 0.7%
13 Oil & Gas 39,724 0.2%
65 Real Estate 468,222 2.7%
72 Retail/Personal Services 22,236 0.1%
64 Insurance Agents & Related Services 97,944 0.6%
50 Wholesale goods 719,265 4.2%
47 Transportation 106,353 0.6%
35 Equipment Manufacturing 310,141 1.8%
20 Food & Beverage 468,652 2.7%
27 Publishing 445,109 2.6%
82 Educational Services 109,991 0.6%
15 Construction 20,300 0.1%
80 Health Services 219,851 1.3%
08 Forestry - 0.0%
83 Social Services 39,018 0.2%
Various Other 1,487,291 8.7%
- ----------------------------------------------------------------------------------------------------------------------------------
SQUARE FEET OCCUPIED BY TENANTS AT 12/31/99 17,160,414 100%
==================================================================================================================================
</TABLE>
17
<PAGE>
REVISED AS OF MARCH 14, 2000
- --------------------------------------------------------------------------------
OFFICE PROPERTY STATISTICS
(as of 12/31/99)
<TABLE>
<CAPTION>
Approximate
Number of Year Built Rentable Square
PRIMARY MARKET Buildings /Renovated Feet
SUB MARKET
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CENTRAL REGION
CHICAGO
LAKE COUNTY
Corporate 500 Centre (k) 4 1986/1990 679,039
OAK BROOK
One Lincoln Centre 1 1986 297,040
- -----------------------------------------------------------------------------------------------------------------------
CENTRAL REGION TOTAL/WEIGHTED AVERAGE 5 976,079
- -----------------------------------------------------------------------------------------------------------------------
NORTHEAST REGION
BOSTON
EAST CAMBRIDGE
One Memorial Drive (b) 1 1985 352,764
FINANCIAL DISTRICT
125 Summer Street 1 1989 463,691
Sixty State Street (a) 1 1979 823,014
BACK BAY
500 Boylston Street 1 1988 714,513
222 Berkeley Street 1 1991 530,844
NEW YORK
PARK/LEXINGTON
Tower 56 1 1983 163,633
MADISON AVENUE
527 Madison Avenue 1 1986 215,332
WASHINGTON D.C.
CBD
Market Square (j) 2 1990 688,709
ALEXANDRIA/OLD TOWN
11 Canal Center 1 1986 70,365
99 Canal Center 1 1986 137,945
TransPotomac Plaza 1 1983 96,392
- -----------------------------------------------------------------------------------------------------------------------
NORTHEAST REGION TOTAL/WEIGHTED AVERAGE 12 4,257,202
- -----------------------------------------------------------------------------------------------------------------------
SOUTHEAST REGION
ATLANTA
CBD
191 Peachtree Street (d) 1 1991 1,215,288
NORTHEAST
200 Galleria 1 1985 432,698
- -----------------------------------------------------------------------------------------------------------------------
SOUTHEAST REGION TOTAL/WEIGHTED AVERAGE 2 1,647,986
- -----------------------------------------------------------------------------------------------------------------------
WEST REGION
MINNEAPOLIS
MINNEAPOLIS CBD
Norwest Center (i) 1 1988 1,117,439
SALT LAKE CITY
CENTRAL VALLEY EAST
U.S. West (c) 1 1985 136,608
SEATTLE
BELLEVUE CBD
110 Atrium Place (c) 1 1981 215,172
CBD
Washington Mutual Tower (e) 3 1988 1,154,560
I-90 CORRIDOR
Island Corporate Center (c) 1 1987 100,009
- -----------------------------------------------------------------------------------------------------------------------
WEST REGION TOTAL/WEIGHTED AVERAGE 7 2,723,788
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Percent of Total
Portfolio
Rentable Percent Annualized Rent
PRIMARY MARKET Square Feet Occupied (000's)(a)
SUB MARKET
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CENTRAL REGION
CHICAGO
LAKE COUNTY
Corporate 500 Centre (k) 3.8% 98.9% 18,555
OAK BROOK
One Lincoln Centre 1.7% 76.6% 6,278
- ------------------------------------------------------------------------------------------------------------------------------------
CENTRAL REGION TOTAL/WEIGHTED AVERAGE 5.5% 92.1% 24,832
- ------------------------------------------------------------------------------------------------------------------------------------
NORTHEAST REGION
BOSTON
EAST CAMBRIDGE
One Memorial Drive (b) 2.0% 99.8% 12,831
FINANCIAL DISTRICT
125 Summer Street 2.6% 67.5% 10,871
Sixty State Street (a) 4.6% 99.9% 27,715
BACK BAY
500 Boylston Street 4.0% 100.1% 39,975
222 Berkeley Street 3.0% 99.8% 26,306
NEW YORK
PARK/LEXINGTON
Tower 56 0.9% 99.2% 7,757
MADISON AVENUE
527 Madison Avenue 1.2% 99.5% 11,774
WASHINGTON D.C.
CBD
Market Square (j) 3.9% 99.3% 27,649
ALEXANDRIA/OLD TOWN
11 Canal Center 0.4% 95.5% 1,660
99 Canal Center 0.8% 97.6% 3,334
TransPotomac Plaza 0.5% 93.8% 2,004
- ------------------------------------------------------------------------------------------------------------------------------------
NORTHEAST REGION TOTAL/WEIGHTED AVERAGE 23.8% 96.0% 171,876
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTHEAST REGION
ATLANTA
CBD
191 Peachtree Street (d) 6.8% 97.7% 34,317
NORTHEAST
200 Galleria 2.4% 96.4% 9,241
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTHEAST REGION TOTAL/WEIGHTED AVERAGE 9.2% 97.4% 43,558
- ------------------------------------------------------------------------------------------------------------------------------------
WEST REGION
MINNEAPOLIS
MINNEAPOLIS CBD
Norwest Center (i) 6.2% 100.0% 38,881
SALT LAKE CITY
CENTRAL VALLEY EAST
U.S. West (c) 0.8% 76.0% 1,920
SEATTLE
BELLEVUE CBD
110 Atrium Place (c) 1.2% 100.0% 4,855
CBD
Washington Mutual Tower (e) 6.5% 96.6% 28,132
I-90 CORRIDOR
Island Corporate Center (c) 0.6% 92.7% 2,124
- ------------------------------------------------------------------------------------------------------------------------------------
WEST REGION TOTAL/WEIGHTED AVERAGE 15.2% 97.1% 75,912
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Percent of
Portfolio Annualized Rent
Annualized Number of Per Occupied
PRIMARY MARKET Rent Leases Square Foot (a)
SUB MARKET
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CENTRAL REGION
CHICAGO
LAKE COUNTY
Corporate 500 Centre (k) 3.5% 42 $27.64
OAK BROOK
One Lincoln Centre 1.2% 39 $27.59
- -------------------------------------------------------------------------------------------------------------------------------
CENTRAL REGION TOTAL/WEIGHTED AVERAGE 4.6% 81 $27.63
- -------------------------------------------------------------------------------------------------------------------------------
NORTHEAST REGION
BOSTON
EAST CAMBRIDGE
One Memorial Drive (b) 2.4% 12 $36.44
FINANCIAL DISTRICT
125 Summer Street 2.0% 20 $34.72
Sixty State Street (a) 5.2% 33 $33.72
BACK BAY
500 Boylston Street 7.5% 30 $55.88
222 Berkeley Street 4.9% 30 $49.65
NEW YORK
PARK/LEXINGTON
Tower 56 1.5% 42 $47.77
MADISON AVENUE
527 Madison Avenue 2.2% 21 $54.92
WASHINGTON D.C.
CBD
Market Square (j) 5.2% 57 $40.42
ALEXANDRIA/OLD TOWN
11 Canal Center 0.3% 6 $24.72
99 Canal Center 0.6% 18 $24.77
TransPotomac Plaza 0.4% 12 $22.17
- -------------------------------------------------------------------------------------------------------------------------------
NORTHEAST REGION TOTAL/WEIGHTED AVERAGE 32.2% 281 $42.07
- -------------------------------------------------------------------------------------------------------------------------------
SOUTHEAST REGION
ATLANTA
CBD
191 Peachtree Street (d) 6.4% 31 $28.90
NORTHEAST
200 Galleria 1.7% 57 $22.16
- -------------------------------------------------------------------------------------------------------------------------------
SOUTHEAST REGION TOTAL/WEIGHTED AVERAGE 8.2% 88 $27.15
- -------------------------------------------------------------------------------------------------------------------------------
WEST REGION
MINNEAPOLIS
MINNEAPOLIS CBD
Norwest Center (i) 7.3% 35 $34.80
SALT LAKE CITY
CENTRAL VALLEY EAST
U.S. West (c) 0.4% 17 $18.51
SEATTLE
BELLEVUE CBD
110 Atrium Place (c) 0.9% 30 $22.56
CBD
Washington Mutual Tower (e) 5.3% 82 $25.23
I-90 CORRIDOR
Island Corporate Center (c) 0.4% 21 $22.92
- -------------------------------------------------------------------------------------------------------------------------------
WEST REGION TOTAL/WEIGHTED AVERAGE 14.2% 185 $28.71
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
<TABLE>
<CAPTION>
Approximate
Number of Year Built Rentable Square
PRIMARY MARKET Buildings /Renovated Feet
SUB MARKET
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PACIFIC REGION
LOS ANGELES
BRENTWOOD
West Wilshire (c) 2 1960 - 1976 235,787
GLENDALE
700 North Brand (c) 1 1981 202,531
SANTA MONICA
429 Santa Monica (c) 1 1982 83,243
Commerce Park (c) 1 1977 94,367
Janss Court (c)(l) 1 1989 125,709
Searise Office Tower (c) 1 1975 122,292
Wilshire Palisades (h) 1 1981 186,714
WESTWOOD
Warner Park Center (c) 1 1986 57,366
OAKLAND
BERKELEY
Golden Bear Center (c) 1 1986 160,587
CONCORD
Corporate Centre (c) 2 1985 - 1987 329,348
PLEASANTON
Park Plaza (c) 1 1986 87,040
PeopleSoft (c) 1 1984 277,562
SAN RAMON
Norris Tech (c) 3 1984 - 1990 260,513
ADP Plaza (c) 2 1987 - 1989 300,308
WALNUT CREEK DOWNTOWN
1600 South Main (c) 1 1983 83,277
YGNACIO VALLEY
2700 Ygnacio Valley Road (c) 1 1984 103,214
ORANGE COUNTY
AIRPORT
18301 Von Karman (c) 1 1991 219,508
TOWN & COUNTRY
2677 North Main (c) 1 1987 213,318
UNCLASSIFIED WEST ORANGE COUNTY
Bixby Ranch (c) 1 1987 277,289
SACREMENTO
POINT WEST/TRIBUTE
Exposition Centre (c) 1 1984 72,971
SAN DIEGO
MISSION VALLEY
Centerside II (c) 1 1987 286,949
Crossroads (c) 1 1983 133,553
SAN FRANCISCO
BURLINGAME
Bay Park Plaza (c) 2 1985 - 1998 257,058
One Bay Plaza (c) 1 1979 176,533
FINANCIAL DISTRICT
120 Montgomery (c) 1 1955 420,310
188 Embarcadero (c) 1 1985 85,183
201 California (h) 1 1980 240,230
One Post (c) 1 1969 391,450
REDWOOD CITY
Seaport Centre (c) 1 1988 463,418
SAN BRUNO
Bayhill (c) 4 1982 - 1987 514,255
SAN MATEO
Peninsula Office Park (c) 7 1971 - 1998 492,044
<CAPTION>
Percent of Total
Portfolio
Rentable Percent Annualized Rent
PRIMARY MARKET Square Feet Occupied (000's)(a)
SUB MARKET
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PACIFIC REGION
LOS ANGELES
BRENTWOOD
West Wilshire (c) 1.3% 94.4% 5,195
GLENDALE
700 North Brand (c) 1.1% 94.2% 5,284
SANTA MONICA
429 Santa Monica (c) 0.5% 85.2% 2,130
Commerce Park (c) 0.5% 78.5% 1,390
Janss Court (c)(l) 0.7% 100.0% 3,468
Searise Office Tower (c) 0.7% 100.0% 3,639
Wilshire Palisades (h) 1.0% 99.5% 7,395
WESTWOOD
Warner Park Center (c) 0.3% 100.0% 1,766
OAKLAND
BERKELEY
Golden Bear Center (c) 0.9% 98.9% 5,237
CONCORD
Corporate Centre (c) 1.8% 95.5% 6,837
PLEASANTON
Park Plaza (c) 0.5% 100.0% 1,763
PeopleSoft (c) 1.6% 100.0% 7,120
SAN RAMON
Norris Tech (c) 1.5% 96.3% 4,255
ADP Plaza (c) 1.7% 95.2% 6,379
WALNUT CREEK DOWNTOWN
1600 South Main (c) 0.5% 98.0% 1,951
YGNACIO VALLEY
2700 Ygnacio Valley Road (c) 0.6% 98.2% 1,936
ORANGE COUNTY
AIRPORT
18301 Von Karman (c) 1.2% 85.7% 4,728
TOWN & COUNTRY
2677 North Main (c) 1.2% 86.8% 3,753
UNCLASSIFIED WEST ORANGE COUNTY
Bixby Ranch (c) 1.6% 95.4% 6,499
SACREMENTO
POINT WEST/TRIBUTE
Exposition Centre (c) 0.4% 70.3% 1,076
SAN DIEGO
MISSION VALLEY
Centerside II (c) 1.6% 92.6% 4,813
Crossroads (c) 0.7% 100.0% 2,341
SAN FRANCISCO
BURLINGAME
Bay Park Plaza (c) 1.4% 100.0% 7,633
One Bay Plaza (c) 1.0% 99.1% 4,372
FINANCIAL DISTRICT
120 Montgomery (c) 2.3% 92.3% 11,214
188 Embarcadero (c) 0.5% 98.9% 3,378
201 California (h) 1.3% 90.8% 7,725
One Post (c) 2.2% 99.0% 10,762
REDWOOD CITY
Seaport Centre (c) 2.6% 100.0% 16,521
SAN BRUNO
Bayhill (c) 2.9% 96.3% 14,421
SAN MATEO
Peninsula Office Park (c) 2.8% 97.6% 17,810
<CAPTION>
Percent of
Portfolio Annualized Rent
Annualized Number of Per Occupied
PRIMARY MARKET Rent Leases Square Foot (a)
SUB MARKET
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PACIFIC REGION
LOS ANGELES
BRENTWOOD
West Wilshire (c) 1.0% 51 $23.35
GLENDALE
700 North Brand (c) 1.0% 19 $27.71
SANTA MONICA
429 Santa Monica (c) 0.4% 34 $30.04
Commerce Park (c) 0.3% 9 $18.77
Janss Court (c)(l) 0.6% 21 $27.59
Searise Office Tower (c) 0.7% 27 $29.76
Wilshire Palisades (h) 1.4% 14 $39.82
WESTWOOD
Warner Park Center (c) 0.3% 7 $30.78
OAKLAND
BERKELEY
Golden Bear Center (c) 1.0% 19 $32.98
CONCORD
Corporate Centre (c) 1.3% 56 $21.74
PLEASANTON
Park Plaza (c) 0.3% 9 $20.25
PeopleSoft (c) 1.3% 5 $25.65
SAN RAMON
Norris Tech (c) 0.8% 7 $16.96
ADP Plaza (c) 1.2% 23 $22.32
WALNUT CREEK DOWNTOWN
1600 South Main (c) 0.4% 17 $23.91
YGNACIO VALLEY
2700 Ygnacio Valley Road (c) 0.4% 27 $19.11
ORANGE COUNTY
AIRPORT
18301 Von Karman (c) 0.9% 32 $25.14
TOWN & COUNTRY
2677 North Main (c) 0.7% 22 $20.27
UNCLASSIFIED WEST ORANGE COUNTY
Bixby Ranch (c) 1.2% 48 $24.57
SACREMENTO
POINT WEST/TRIBUTE
Exposition Centre (c) 0.2% 14 $20.98
SAN DIEGO
MISSION VALLEY
Centerside II (c) 0.9% 43 $18.12
Crossroads (c) 0.4% 11 $17.53
SAN FRANCISCO
BURLINGAME
Bay Park Plaza (c) 1.4% 12 $29.69
One Bay Plaza (c) 0.8% 48 $24.99
FINANCIAL DISTRICT
120 Montgomery (c) 2.1% 84 $28.91
188 Embarcadero (c) 0.6% 10 $40.10
201 California (h) 1.4% 9 $35.41
One Post (c) 2.0% 32 $27.77
REDWOOD CITY
Seaport Centre (c) 3.1% 15 $35.65
SAN BRUNO
Bayhill (c) 2.7% 45 $29.13
SAN MATEO
Peninsula Office Park (c) 3.3% 38 $37.07
</TABLE>
19
<PAGE>
<TABLE>
<CAPTION>
Approximate
Number of Year Built Rentable Square
PRIMARY MARKET Buildings /Renovated Feet
SUB MARKET
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SAN JOSE
CBD
10 Almaden (c) 1 1989 294,809
CAMPBELL
Pruneyard Inn (c)(g) 1 1989 na
Pruneyard Office (c)(f) 3 1971 - 1999 354,629
Pruneyard Shopping Center (c) 1 1970s 252,210
PALO ALTO
Embarcadero Place (c) 4 1984 192,081
VENTURA
CONEJO VALLEY
Agoura Hills (c) 1 1987 115,208
Westlake Spectrum (c) 2 1990 118,990
- -----------------------------------------------------------------------------------------------------------------------
PACIFIC REGION TOTAL/WEIGHTED AVERAGE 59 8,281,854
- -----------------------------------------------------------------------------------------------------------------------
PORTFOLIO TOTAL/WEIGHTED AVERAGE 85 17,886,909
=======================================================================================================================
<CAPTION>
Percent of Total
Portfolio
Rentable Percent Annualized Rent
PRIMARY MARKET Square Feet Occupied (000's)(a)
SUB MARKET
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SAN JOSE
CBD
10 Almaden (c) 1.6% 100.0% 7,933
CAMPBELL
Pruneyard Inn (c)(g) na na na
Pruneyard Office (c)(f) 2.0% 95.4% 10,532
Pruneyard Shopping Center (c) 1.4% 90.3% 4,913
PALO ALTO
Embarcadero Place (c) 1.1% 100.0% 6,839
VENTURA
CONEJO VALLEY
Agoura Hills (c) 0.6% 99.8% 2,388
Westlake Spectrum (c) 0.7% 97.2% 2,657
- -----------------------------------------------------------------------------------------------------------------------------------
PACIFIC REGION TOTAL/WEIGHTED AVERAGE 46.3% 95.7% 218,052
- -----------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TOTAL/WEIGHTED AVERAGE 100.0% 95.9% 534,231
===================================================================================================================================
<CAPTION>
Percent of
Portfolio Annualized Rent
Annualized Number of Per Occupied
PRIMARY MARKET Rent Leases Square Foot (a)
SUB MARKET
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SAN JOSE
CBD
10 Almaden (c) 1.5% 23 $26.91
CAMPBELL
Pruneyard Inn (c)(g) na na na
Pruneyard Office (c)(f) 2.0% 82 $31.12
Pruneyard Shopping Center (c) 0.9% 51 $21.56
PALO ALTO
Embarcadero Place (c) 1.3% 8 $35.60
VENTURA
CONEJO VALLEY
Agoura Hills (c) 0.4% 11 $20.77
Westlake Spectrum (c) 0.5% 10 $22.97
- ------------------------------------------------------------------------------------------------------------------------------
PACIFIC REGION TOTAL/WEIGHTED AVERAGE 40.8% 993 $27.51
- ------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TOTAL/WEIGHTED AVERAGE 100.0% 1,628 $31.13
==============================================================================================================================
</TABLE>
(a) On December 31, 1997, the Company purchased the second mortgage on Sixty
State Street. The mortgage is a cash flow mortgage through which all the
economic benefits/risks (subject to the first mortgage) will inure to the
Company. The Company controls all major decisions regarding management and
leasing. The total purchase price for the second mortgage was $131.5
million.
(b) The Property was acquired by the Company in April 1998.
(c) Property acquired as a result of the Wilson acquisition in December 1998.
(d) While the Company's stated interest in the partnership that owns 191
Peachtree Street is 80%, its economic interest is significantly larger
since it has acquired the first mortgage note on the Property in the amount
of $145 million, which earns interest at 9.375%, and will receive a
priority distribution on its acquired capital base. The partner in the
transaction, CH Associates, Ltd., receives an annual incentive distribution
of $250,000 which the Company expects it will continue to receive under the
partnership agreement through February 28, 2000, with the Company receiving
the remainder of the cash flow of the property.
(e) While the Company's stated interest in the partnership which owns
Washington Mutual Tower is 50%, its economic interest in the Property is
significantly larger because of priority distributions it receives on its
invested capital base. For the quarter ended June 30, 1999, the Company
received 100% of the cash distributions from the partnership that owns
Washington Mutual Tower.
(f) Pruneyard Place construction was completed and occupied on April 1, 1999.
The building was entirely pre-leased.
(g) The Pruneyard Inn is a 94,500 sf three-story hotel. A 25,000 square foot
expansion was completed in May 1999, increasing the number of rooms from
118 to 172.
(h) The Property was acquired by the Company in June 1998.
(i) While the Company's stated interest in the partnership which owns Norwest
Center is 50%, its economic interest in the Property is significantly
larger because of priority distributions it receives on its invested
capital base. For the quarter ended June 30, 1999, the Company's share of
earnings and cash distributions from the partnership that owns Norwest
Center was 77.2%.
(j) During 1998, through a series of transactions, the Company acquired
partnership interests with a stated interest of approximately 70% in the
partnerships that own Market Square. The Company's economic interest is
significantly larger since it has acquired the first mortgage note on the
Property in the amount of $181 million which earns interest at 9.75%, and
will receive a priority distribution on its acquired capital base. In
addition, the Company acquired a "buffer loan", with accrued principal and
interest of $49.0 million at purchase, which accrues interest at a rate of
11% per annum and is payable from cash flow, refinancing or sales proceeds
from Market Square in excess of the first mortgage. During the quarter
ended September 30, 1999, the Company received 100% of the cash flow from
the Property.
(k) The Property was acquired by the Company in January 1998.
(l) Janss Court is a seven-story, 125,000 square foot Class A mixed-use
building. Along with 92,000 square feet of retail and office space, Janss
Court offers 32 apartments for a total of 33,000 rentable square feet of
residential space.
20
<PAGE>
OFFICE MARKET GRAPHS
<PAGE>
THE 54 MAJOR U.S. OFFICE MARKETS
NET ABSORPTION*, COMPLETIONS AND VACANCY RATES
[GRAPHIC]
SOURCE: CB COMMERCIAL REAL ESTATE GROUP, INC./TORTO WHEATON RESEARCH AS OF 4TH
QUARTER 1999
* CB Commercial Real Estate Group, Inc. / Torto Wheaton Research defines net
absorption as the net change in multi-tenant occupied stock, in square feet,
during that period.
21
<PAGE>
THE COMPANY'S 10 LARGEST MARKETS
NET ABSORPTION*, COMPLETIONS AND VACANCY RATES
[GRAPHIC]
SOURCE: CB COMMERCIAL REAL ESTATE GROUP, INC./TORTO WHEATON RESEARCH AS OF 4TH
QUARTER 1999
* CB Commercial Real Estate Group, Inc. / Torto Wheaton Research defines net
absorption as the net change in multi-tenant occupied stock, in square feet,
during that period.
22
<PAGE>
- --------------------------------------------------------------------------------
FOR THE COMPANY'S 10 LARGEST MARKETS
Vacancy Rates of Class A Office Space
Compared to Vacancy Rates for All Office Space
<TABLE>
<CAPTION>
Direct Vacancy Rate for Class A Direct Vacancy Rate for All CPP's*Direct Vacancy Rate for
Office Space* Office Space* Office Space
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Boston, MA 5.6% 5.9% 4.3%
San Francisco, CA 3.0% 3.0% 2.0%
Atlanta, GA 9.0% 10.4% 2.2%
Seattle, WA 3.1% 3.8% 1.8%
Washington DC 4.6% 5.3% 0.6%
Minneapolis, MN 6.5% 7.7% 0.0%
San Jose, CA 6.5% 5.4% 2.5%
Oakland, CA 7.8% 7.9% 2.1%
Los Angeles, CA 14.8% 14.4% 5.1%
Chicago, IL 7.8% 9.5% 4.1%
- -----------------------------------------------------------------------------------------------------------------------------------
All 10 Markets 7.8% 8.0% 2.6%
- -----------------------------------------------------------------------------------------------------------------------------------
Markets ordered based on CPP Net Operating Income
</TABLE>
*Data through December 31, 1999. CB Commercial Real Estate Group, Inc. / Torto
Wheaton Research.
23
<PAGE>
- --------------------------------------------------------------------------------
CORNERSTONE PROPERTIES' CONTRIBUTION TO EQUITY OFFICE PROPERTIES' 25 LARGEST
TENANTS - BASED ON ANNUALIZED BASE RENT
(as of 12/31/99)
<TABLE>
<CAPTION>
PERCENTAGE OF
AGGREGATE PERCENTAGE OF
WEIGHTED AVERAGE PORTFOLIO AGGREGATE AGGREGATE
NUMBER OF REMAINING LEASE ANNUALIZED RENTABLE OCCUPIED SQUARE
TENANT (a) BUILDINGS TERM IN MONTHS (b) RENT (c) SQUARE FEET FEET
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
General Services Administration 8 55 0.3% 92,440 0.5%
Oglivy & Mather - - - - -
IBM 1 46 0.2% 33,577 0.2%
Cravath Swaine & Moore - - - - -
State Street Bank - - - - -
PriceWaterhouseCoopers 1 122 0.7% 147,968 0.9%
Silicon Graphics, Inc. 1 32 0.1% 9,186 0.1%
Bank of America 2 71 - 7,249 -
Andersen Consulting 1 52 0.1% 15,838 0.1%
AT&T 2 54 - 629 -
Arthur Andersen - - - - -
Wells Fargo Bank 4 181 2.8% 795,424 4.6%
Bank One - - - - -
Universal Music Group, Inc. - - - - -
Chicago Title and Trust - - - - -
Brobeck Phleger and Harrison 3 45 0.9% 120,000 0.7%
Reuters America, Inc. - - - - -
GTE - - - - -
William M. Mercer, Inc. 1 52 - 6,851 -
US West Communications 1 20 0.1% 37,276 0.2%
American Management Systems 1 13 - 2,728 -
Booz Allen & Hamilton, Inc. - - - - -
Smith Barney 1 61 0.1% 17,122 0.1%
Aon Service Corporation 2 57 0.1% 17,226 0.1%
Merrill Lynch 2 38 0.1% 12,998 0.1%
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL \ WEIGHTED AVERAGE (B) 136 5.5% 1,316,512 7.6%
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Actual tenant may be a susidiary of, or an entity affiliated with, the named
tenant.
(b) Weighted Average calculation based on aggregate rentable square footage
occupied by each tenant.
(c) Annualized Rent is the monthly contractual base rent under existing leases
as of December 31, 1999 multiplied by 12.
14
<PAGE>
- --------------------------------------------------------------------------------
OFFICE PROPERTY STATISTICS
(as of 12/31/99)
<TABLE>
<CAPTION>
Percent of Total
Approximate Portfolio
Number of Year Built Rentable Square Rentable Percent
PRIMARY MARKET Buildings /Renovated Feet Square Feet Occupied
SUB MARKET
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CENTRAL REGION
CHICAGO
LAKE COUNTY
Corporate 500 Centre (4 buildings) 4 1986/1990 679,039 3.8% 98.9% S
OAK BROOK
One Lincoln Centre 1 1986 297,040 1.7% 76.6% S
- ---------------------------------------------------------------------------------------------------------------------------------
CENTRAL REGION TOTAL/WEIGHTED AVERAGE 5 976,079 5.4% 96.1%
- ---------------------------------------------------------------------------------------------------------------------------------
NORTHEAST REGION
BOSTON
EAST CAMBRIDGE
One Memorial Drive 1 1985 352,764 2.0% 99.8% S
FINANCIAL DISTRICT
125 Summer Street 1 1989 463,691 2.6% 67.5% C
Sixty State Street 1 1979 823,014 4.6% 99.9% C
BACK BAY
500 Boylston Street 1 1988 714,513 4.0% 100.0% C
222 Berkeley Street 1 1991 530,844 3.0% 99.8% C
NEW YORK
PARK/LEXINGTON
Tower 56 1 1983 163,633 0.9% 99.2% C
MADISON AVENUE
527 Madison Avenue 1 1986 215,332 1.2% 99.5% C
WASHINGTON D.C.
CBD
Market Square (2 buildings) 2 1990 688,709 3.8% 99.3% C
ALEXANDRIA/OLD TOWN
11 Canal Center 1 1986 70,365 0.4% 95.5% S
99 Canal Center 1 1986 137,945 0.8% 97.6% S
TransPotomac Plaza 1 1983 96,392 0.5% 93.8% S
- ---------------------------------------------------------------------------------------------------------------------------------
NORTHEAST REGION TOTAL/WEIGHTED AVERAGE 12 4,257,202 23.7% 97.3%
- ---------------------------------------------------------------------------------------------------------------------------------
SOUTHEAST REGION
ATLANTA
CBD
191 Peachtree Street 1 1991 1,215,288 6.8% 97.7% C
NORTHEAST
200 Galleria 1 1985 432,698 2.4% 96.4% S
- ---------------------------------------------------------------------------------------------------------------------------------
SOUTHEAST REGION TOTAL/WEIGHTED AVERAGE 2 1,647,986 9.2% 90.4%
- ---------------------------------------------------------------------------------------------------------------------------------
WEST REGION
MINNEAPOLIS
MINNEAPOLIS CBD
Norwest Center (i) 1 1988 1,117,439 6.2% 100.0% C
SALT LAKE CITY
CENTRAL VALLEY EAST
U.S. West (c) 1 1985 136,608 0.8% 76.0% S
SEATTLE
BELLEVUE CBD
110 Atrium Place (c) 1 1981 215,172 1.2% 100.0% S
CBD
Washington Mutual Tower (e) 3 1988 1,154,560 6.4% 96.6% C
I-90 CORRIDOR
Island Corporate Center (c) 1 1987 100,009 0.6% 96.9% S
- ---------------------------------------------------------------------------------------------------------------------------------
WEST REGION TOTAL/WEIGHTED AVERAGE 7 2,723,788 15.1% 92.1%
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Property % of % of
PRIMARY MARKET Cash NOI Total MSA Total Total
SUB MARKET
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CENTRAL REGION
CHICAGO
LAKE COUNTY
Corporate 500 Centre (4 buildings) 12,550 3.6%
OAK BROOK
One Lincoln Centre 4,759 1.4% 17,309 5.0%
- ---------------------------------------------------------- ------------------------------------------
CENTRAL REGION TOTAL/WEIGHTED AVERAGE 17,309 5.0% 17,309 5.0%
- ---------------------------------------------------------- ------------------------------------------
NORTHEAST REGION
BOSTON
EAST CAMBRIDGE
One Memorial Drive 8,858 2.6%
FINANCIAL DISTRICT
125 Summer Street 8,737 2.5%
Sixty State Street 18,350 5.3%
BACK BAY
500 Boylston Street 21,385 6.2%
222 Berkeley Street 12,071 3.5% 69,400 20.1%
NEW YORK
PARK/LEXINGTON
Tower 56 4,251 1.2%
MADISON AVENUE
527 Madison Avenue 6,632 1.9% 10,883 3.1%
WASHINGTON D.C.
CBD
Market Square (2 buildings) 18,825 5.4%
ALEXANDRIA/OLD TOWN
11 Canal Center 1,173 0.3%
99 Canal Center 2,699 0.8%
TransPotomac Plaza 1,425 0.4% 24,122 7.0%
- ---------------------------------------------------------- ------------------------------------------
NORTHEAST REGION TOTAL/WEIGHTED AVERAGE 104,406 30.2% 104,406 30.2%
- ---------------------------------------------------------- ------------------------------------------
SOUTHEAST REGION
ATLANTA
CBD
191 Peachtree Street 26,433 7.6%
NORTHEAST
200 Galleria 5,694 1.6% 32,127 9.3%
- ---------------------------------------------------------- ------------------------------------------
SOUTHEAST REGION TOTAL/WEIGHTED AVERAGE 32,127 9.3% 32,127 9.3%
- ---------------------------------------------------------- ------------------------------------------
WEST REGION
MINNEAPOLIS
MINNEAPOLIS CBD
Norwest Center (i) 23,610 6.8% 23,610 6.8%
SALT LAKE CITY
CENTRAL VALLEY EAST
U.S. West (c) 1,105 0.3% 1,105 0.3%
SEATTLE
BELLEVUE CBD
110 Atrium Place (c) 3,651 1.1%
CBD
Washington Mutual Tower (e) 21,906 6.3%
I-90 CORRIDOR
Island Corporate Center (c) 1,266 0.4% 26,822 7.8%
- ---------------------------------------------------------- ------------------------------------------
WEST REGION TOTAL/WEIGHTED AVERAGE 51,538 14.9% 51,538 14.9%
- ---------------------------------------------------------- ------------------------------------------
</TABLE>
22
<PAGE>
<TABLE>
<CAPTION>
Percent of Total
Approximate Portfolio
Number of Year Built Rentable Square Rentable Percent
PRIMARY MARKET Buildings /Renovated Feet Square Feet Occupied
SUB MARKET
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
PACIFIC REGION
LOS ANGELES
BRENTWOOD
West Wilshire (c) 2 1960 - 1976 235,787 1.3% 94.4% S
GLENDALE
700 North Brand (c) 1 1981 202,531 1.1% 94.2% S
SANTA MONICA
429 Santa Monica (c) 1 1982 83,243 0.5% 87.5% S
Commerce Park (c) 1 1977 94,367 0.5% 78.5% S
Janss Court (c)(l) 1 1989 125,709 0.7% 100.0% S
Searise Office Tower (c) 1 1975 122,292 0.7% 100.0% S
Wilshire Palisades (h) 1 1981 186,714 1.0% 99.5% S
WESTWOOD
Warner Park Center (c) 1 1986 57,366 0.3% 100.0% S
OAKLAND
BERKELEY
Golden Bear Center (c) 1 1986 160,587 0.9% 98.9% S
CONCORD
Corporate Centre (c) 2 1985 - 1987 329,348 1.8% 95.5% S
PLEASANTON
Park Plaza (c) 1 1986 87,040 0.5% 100.0% S
PeopleSoft (c) 1 1984 277,562 1.5% 100.0% S
SAN RAMON
Norris Tech (c) 3 1984 - 1990 260,513 1.4% 100.0% S
ADP Plaza (c) 2 1987 - 1989 300,308 1.7% 95.2% S
WALNUT CREEK DOWNTOWN
1600 South Main (c) 1 1983 83,277 0.5% 98.0% S
YGNACIO VALLEY
2700 Ygnacio Valley Road (c) 1 1984 103,214 0.6% 99.2% S
ORANGE COUNTY
AIRPORT
18301 Von Karman (c) 1 1991 219,508 1.2% 88.3% S
TOWN & COUNTRY
2677 North Main (c) 1 1987 213,318 1.2% 94.3% S
UNCLASSIFIED WEST ORANGE COUNTY
Bixby Ranch (c) 1 1987 277,289 1.5% 98.1% S
SACREMENTO
POINT WEST/TRIBUTE
Exposition Centre (c) 1 1984 72,971 0.4% 70.3% S
SAN DIEGO
MISSION VALLEY
Centerside II (c) 1 1987 286,949 1.6% 92.6% S
Crossroads (c) 1 1983 133,553 0.7% 100.0% S
SAN FRANCISCO
BURLINGAME
Bay Park Plaza (c) 2 1985 - 1998 257,058 1.4% 100.0% S
One Bay Plaza (c) 1 1979 176,533 1.0% 99.1% S
FINANCIAL DISTRICT
120 Montgomery (c) 1 1955 420,310 2.3% 94.5% C
188 Embarcadero (c) 1 1985 85,183 0.5% 98.9% C
201 California (h) 1 1980 240,230 1.3% 90.8% C
One Post (c) 1 1969 391,450 2.2% 99.0% C
REDWOOD CITY
Seaport Centre (c) 1 1988 463,418 2.6% 100.0% S
SAN BRUNO
Bayhill (c) 4 1982 - 1987 514,255 2.9% 96.3% S
SAN MATEO
Peninsula Office Park (c) 7 1971 - 1998 492,044 2.7% 99.9% S
<CAPTION>
Property % of % of
PRIMARY MARKET Cash NOI Total MSA Total Total
SUB MARKET
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PACIFIC REGION
LOS ANGELES
BRENTWOOD
West Wilshire (c) 2,986 0.9%
GLENDALE
700 North Brand (c) 3,735 1.1%
SANTA MONICA
429 Santa Monica (c) 822 0.2%
Commerce Park (c) 916 0.3%
Janss Court (c)(l) 2,791 0.8%
Searise Office Tower (c) 2,369 0.7%
Wilshire Palisades (h) 5,947 1.7%
WESTWOOD
Warner Park Center (c) 1,161 0.3% 20,727 6.0%
OAKLAND
BERKELEY
Golden Bear Center (c) 2,693 0.8%
CONCORD
Corporate Centre (c) 3,949 1.1%
PLEASANTON
Park Plaza (c) 811 0.2%
PeopleSoft (c) 4,153 1.2%
SAN RAMON
Norris Tech (c) 3,066 0.9%
ADP Plaza (c) 4,069 1.2%
WALNUT CREEK DOWNTOWN
1600 South Main (c) 1,122 0.3%
YGNACIO VALLEY
2700 Ygnacio Valley Road (c) 1,075 0.3% 20,937 6.1%
ORANGE COUNTY
AIRPORT
18301 Von Karman (c) 2,634 0.8%
TOWN & COUNTRY
2677 North Main (c) 2,071 0.6%
UNCLASSIFIED WEST ORANGE COUNTY
Bixby Ranch (c) 4,596 1.3% 9,301 2.7%
SACREMENTO
POINT WEST/TRIBUTE
Exposition Centre (c) 498 0.1% 498 0.1%
SAN DIEGO
MISSION VALLEY
Centerside II (c) 2,662 0.8%
Crossroads (c) 1,345 0.4% 4,007 1.2%
SAN FRANCISCO
BURLINGAME
Bay Park Plaza (c) 6,305 1.8%
One Bay Plaza (c) 2,999 0.9%
FINANCIAL DISTRICT
120 Montgomery (c) 5,166 1.5%
188 Embarcadero (c) 1,912 0.6%
201 California (h) 4,051 1.2%
One Post (c) 6,374 1.8%
REDWOOD CITY
Seaport Centre (c) 10,059 2.9%
SAN BRUNO
Bayhill (c) 9,232 2.7%
SAN MATEO
Peninsula Office Park (c) 12,149 3.5% 58,249 16.9%
</TABLE>
23
<PAGE>
<TABLE>
<CAPTION>
Percent of Total
Approximate Portfolio
Number of Year Built Rentable Square Rentable Percent
PRIMARY MARKET Buildings /Renovated Feet Square Feet Occupied
SUB MARKET
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
SAN JOSE
CBD
10 Almaden (c) 1 1989 294,809 1.6% 100.0% C
CAMPBELL
Pruneyard Inn (c)(g) 1 1989 94,500 0.5% na S
Pruneyard Office (c)(f) 3 1971 - 1999 354,629 2.0% 99.1% S
Pruneyard Shopping Center (c) 1 1970s 252,210 1.4% 90.3% S
PALO ALTO
Embarcadero Place (c) 4 1984 192,081 1.1% 100.0% S
VENTURA
CONEJO VALLEY
Agoura Hills (c) 1 1987 115,208 0.6% 99.8% S
Westlake Spectrum (c) 2 1990 118,990 0.7% 97.2% S
- ---------------------------------------------------------------------------------------------------------------------------------
PACIFIC REGION TOTAL/WEIGHTED AVERAGE 59 8,376,354 46.6% 90.2%
- ---------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TOTAL/WEIGHTED AVERAGE 85 17,981,409 100.0% 93.7%
=================================================================================================================================
CBD 8,519,005 47.4%
Surburban 9,462,404 52.6%
17,981,409
Total SF
Northeast 4,257,202 23.7%
Central 976,079 5.4%
Pacific 8,376,354 46.6%
West 2,723,788 15.1%
Southwest 0 0.0%
Southeast 1,647,986 9.2%
17,981,409
CBD
Northeast 3,599,736 20.0%
Central 0 0.0%
Pacific 1,431,982 8.0%
West 2,271,999 12.6%
Southwest 0 0.0%
Southeast 1,215,288 6.8%
8,519,005
Suburban
Northeast 657,466 3.7%
Central 976,079 5.4%
Pacific 6,944,372 38.6%
West 451,789 2.5%
Southwest 0 0.0%
Southeast 432,698 2.4%
9,462,404
<CAPTION>
Property % of % of
PRIMARY MARKET Cash NOI Total MSA Total Total
SUB MARKET
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SAN JOSE
CBD
10 Almaden (c) 6,068 1.8%
CAMPBELL
Pruneyard Inn (c)(g) 3,107 0.9%
Pruneyard Office (c)(f) 5,790 1.7%
Pruneyard Shopping Center (c) 3,014 0.9%
PALO ALTO
Embarcadero Place (c) 5,356 1.6% 23,334 6.8%
VENTURA
CONEJO VALLEY
Agoura Hills (c) 1,422 0.4%
Westlake Spectrum (c) 1,686 0.5% 3,108 0.9%
- -------------------------------------------------------- ------------------------------------------
PACIFIC REGION TOTAL/WEIGHTED AVERAGE 140,162 40.6% 140,162 40.6%
- -------------------------------------------------------- ------------------------------------------
PORTFOLIO TOTAL/WEIGHTED AVERAGE 345,541 100.0% 345,541 100.0%
======================================================== ==========================================
185,773 53.8% 16
159,769 46.2%
345,541
Total SF
104,406 30.2%
17,309 5.0%
140,162 40.6%
51,538 14.9%
0 0.0%
32,127 9.3%
345,541 100.0%
CBD
90,251 26.1%
0 0.0%
23,572 6.8%
45,516 13.2%
0 0.0%
26,433 7.6%
185,773 53.8%
Suburban
14,155 4.1%
17,309 5.0%
116,589 33.7%
6,021 1.7%
0 0.0%
5,694 1.6%
159,769 46.2%
</TABLE>
24
<PAGE>
<TABLE>
<CAPTION>
Sum of NRA
- --------------------------------
SIC Code Total
- --------------------------------
<S> <C> <C>
81 2,969,877 Legal services
73 2,415,263 Business services
62 1,729,085 Security, commodity brokers, and services
60 1,608,123 Depository institutions
63 1,495,508 Insurance carriers
87 1,474,532 Engineering and management services
27 445,109 Printing and publishing
48 410,585 Communications
65 377,370 Real estate
67 334,077 Holding and other investment offices
35 310,141 Industrial machinery and equipment
61 287,171 Nondepository credit institutions
58 277,710 Eating and drinking places
51 266,797 Wholesale trade--nondurable goods
80 219,851 Health services
20 190,942 Food and kindred products
59 176,147 Miscellaneous retail
36 164,024 Electrical and Electronic Equipment
49 157,639 Electric, gas and sanitary services
28 152,854 Chemicals and allied products
56 122,057 Apparel and accessory stores
78 115,555 Motion pictures
82 109,991 Educational services
47 106,353 Transportation services
86 103,693 Membership organizations
91 99,263 Executive, legislative, and general government
64 97,944 Insurance agents, brokers, and service
other 96,048 Other
37 78,138 Transportation equipment
26 77,518 Paper and allied products
53 75,743 General merchandise stores
89 60,242 Miscellaneous services
38 50,259 Instruments and related products
45 49,780 Transportation by air
13 39,724 Oil and gas extraction
83 39,018 Social services
54 33,654 Food stores
79 33,610 Amusement and recreational services
70 31,436 Hotels, rooming houses, camps, and other lodging places
57 27,266 Furniture, home furnishings and equipment stores
75 27,119 Automotive repair, services, and parking
84 22,427 Museums, art galleries, botanical & zoological garden
34 22,392 Fabricated metal products
72 22,236 Personal Services
44 20,625 Water transportation
15 20,300 General building contractors
39 19,426 Miscellaneous manufacturing industries
50 16,330 Wholesale trade--durable goods
21 14,441 Tobacco manufacturers
43 12,783 U.S. Postal Service
29 12,349 Petroleum and coal products
94 12,238 Administration of human resources
97 10,907 National security and international affairs
41 10,545 Local and interurban passenger transit
40 7,686 Railroads, Line-haul Operating
42 5,297 Motor freight transportation and warehousing
33 4,673 Primary metal industries
23 3,963 Apparel and other textile products
12 2,588 Coal Mining
25 1,455 Furniture and fixtures
32 1,321 Stone, clay, glass, and concrete products
55 1,271 Automotive dealers and gasoline services stations
17 270 other
(blank)
- --------------------------------
Grand Total 17,182,739
- --------------------------------
3,171,435 OTHER
</TABLE>
<PAGE>
OFFICE PROPERTY STATISTICS DETAIL
(as of 12/31/99)
<TABLE>
<CAPTION>
PRIMARY MARKET Occupied SF %
SUB MARKET
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
CENTRAL REGION
CHICAGO
LAKE COUNTY
Corporate 500 Centre (k) 671,237 98.9%
OAK BROOK
One Lincoln Centre 227,562 76.6%
- -------------------------------------------------------------------------------
CENTRAL REGION TOTAL/WEIGHTED AVERAGE 898,799 92.1%
- -------------------------------------------------------------------------------
NORTHEAST REGION
BOSTON
EAST CAMBRIDGE
One Memorial Drive (b) 352,164 99.8%
FINANCIAL DISTRICT
125 Summer Street 313,109 67.5%
Sixty State Street (a) 822,000 99.9%
BACK BAY
500 Boylston Street 715,381 100.1%
222 Berkeley Street 529,825 99.8%
NEW YORK
PARK/LEXINGTON
Tower 56 162,393 99.2%
MADISON AVENUE
527 Madison Avenue 214,359 99.5%
WASHINGTON D.C.
CBD
Market Square (j) 684,120 99.3%
ALEXANDRIA/OLD TOWN
11 Canal Center 67,167 95.5%
99 Canal Center 134,610 97.6%
TransPotomac Plaza 90,384 93.8%
- -------------------------------------------------------------------------------
NORTHEAST REGION TOTAL/WEIGHTED AVERAGE 4,085,512 96.0%
- -------------------------------------------------------------------------------
SOUTHEAST REGION
ATLANTA
CBD
191 Peachtree Street (d) 1,187,264 97.7%
NORTHEAST
200 Galleria 417,090 96.4%
- -------------------------------------------------------------------------------
SOUTHEAST REGION TOTAL/WEIGHTED AVERAGE 1,604,354 97.4%
- -------------------------------------------------------------------------------
WEST REGION
MINNEAPOLIS
MINNEAPOLIS CBD
Norwest Center (i) 1,117,439 100.0%
SALT LAKE CITY
CENTRAL VALLEY EAST
U.S. West (c) 103,763 76.0%
SEATTLE
BELLEVUE CBD
110 Atrium Place (c) 215,172 100.0%
CBD
Washington Mutual Tower (e) 1,115,058 96.6%
I-90 CORRIDOR
Island Corporate Center (c) 92,691 92.7%
- -------------------------------------------------------------------------------
WEST REGION TOTAL/WEIGHTED AVERAGE 2,644,123 97.1%
- -------------------------------------------------------------------------------
<CAPTION>
Pre-Leased
PRIMARY MARKET SF % Leased SF % Vacant SF %
SUB MARKET
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CENTRAL REGION
CHICAGO
LAKE COUNTY
Corporate 500 Centre (k) - 0.0% 671,237 98.9% 7,802 1.1% S
OAK BROOK 0
One Lincoln Centre 37,266 12.5% 264,828 89.2% 32,212 10.8% S
- ----------------------------------------------------------------------------------------------------------------------------
CENTRAL REGION TOTAL/WEIGHTED AVERAGE 37,266 3.8% 936,065 95.9% 40,014 4.1% 0
- ----------------------------------------------------------------------------------------------------------------------------
NORTHEAST REGION 0
BOSTON 0
EAST CAMBRIDGE 0
One Memorial Drive (b) - 0.0% 352,164 99.8% 600 0.2% S
FINANCIAL DISTRICT 0
125 Summer Street 29,601 6.4% 342,710 73.9% 120,981 26.1% C
Sixty State Street (a) - 0.0% 822,000 99.9% 1,014 0.1% C
BACK BAY 0
500 Boylston Street - 0.0% 715,381 100.1% (868) -0.1% C
222 Berkeley Street - 0.0% 529,825 99.8% 1,019 0.2% C
NEW YORK 0
PARK/LEXINGTON 0
Tower 56 - 0.0% 162,393 99.2% 1,240 0.8% C
MADISON AVENUE 0
527 Madison Avenue - 0.0% 214,359 99.5% 973 0.5% C
WASHINGTON D.C. 0
CBD 0
Market Square (j) - 0.0% 684,120 99.3% 4,589 0.7% C
ALEXANDRIA/OLD TOWN 0
11 Canal Center 2,099 3.0% 69,266 98.4% 1,099 1.6% S
99 Canal Center 3,335 2.4% 137,945 100.0% - 0.0% S
TransPotomac Plaza 6,008 6.2% 96,392 100.0% - 0.0% S
- ----------------------------------------------------------------------------------------------------------------------------
NORTHEAST REGION TOTAL/WEIGHTED AVERAGE 41,043 1.0% 4,126,555 96.9% 130,647 3.1% 0
- ----------------------------------------------------------------------------------------------------------------------------
SOUTHEAST REGION 0
ATLANTA 0
CBD 0
191 Peachtree Street (d) - 0.0% 1,187,264 97.7% 28,024 2.3% C
NORTHEAST 0
200 Galleria 8,148 1.9% 425,238 98.3% 7,460 1.7% S
- ----------------------------------------------------------------------------------------------------------------------------
SOUTHEAST REGION TOTAL/WEIGHTED AVERAGE 8,148 0.5% 1,612,502 97.8% 35,484 2.2% 0
- ----------------------------------------------------------------------------------------------------------------------------
WEST REGION 0
MINNEAPOLIS 0
MINNEAPOLIS CBD 0
Norwest Center (i) - 0.0% 1,117,439 100.0% - 0.0% C
SALT LAKE CITY 0
CENTRAL VALLEY EAST 0
U.S. West (c) - 0.0% 103,763 76.0% 32,845 24.0% S
SEATTLE 0
BELLEVUE CBD 0
110 Atrium Place (c) - 0.0% 215,172 100.0% - 0.0% S
CBD 0
Washington Mutual Tower (e) 15,403 1.3% 1,130,461 97.9% 24,099 2.1% C
I-90 CORRIDOR 0
Island Corporate Center (c) 4,247 4.2% 96,938 96.9% 3,071 3.1% S
- ----------------------------------------------------------------------------------------------------------------------------
WEST REGION TOTAL/WEIGHTED AVERAGE 19,650 0.7% 2,663,773 97.8% 60,015 2.2% 0
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
22
<PAGE>
<TABLE>
<CAPTION>
PRIMARY MARKET Occupied SF %
SUB MARKET
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
PACIFIC REGION
LOS ANGELES
BRENTWOOD
West Wilshire (c) 222,497 94.4%
GLENDALE
700 North Brand (c) 190,690 94.2%
SANTA MONICA
429 Santa Monica (c) 70,916 85.2%
Commerce Park (c) 74,043 78.5%
Janss Court (c)(l) 125,709 100.0%
Searise Office Tower (c) 122,296 100.0%
Wilshire Palisades (h) 185,698 99.5%
WESTWOOD
Warner Park Center (c) 57,366 100.0%
OAKLAND
BERKELEY
Golden Bear Center (c) 158,802 98.9%
CONCORD
Corporate Centre (c) 314,502 95.5%
PLEASANTON
Park Plaza (c) 87,040 100.0%
PeopleSoft (c) 277,562 100.0%
SAN RAMON
Norris Tech (c) 250,913 96.3%
ADP Plaza (c) 285,857 95.2%
WALNUT CREEK DOWNTOWN
1600 South Main (c) 81,588 98.0%
YGNACIO VALLEY
2700 Ygnacio Valley Road (c) 101,337 98.2%
ORANGE COUNTY
AIRPORT
18301 Von Karman (c) 188,102 85.7%
TOWN & COUNTRY
2677 North Main (c) 185,118 86.8%
UNCLASSIFIED WEST ORANGE COUNTY
Bixby Ranch (c) 264,512 95.4%
SACREMENTO
POINT WEST/TRIBUTE
Exposition Centre (c) 51,293 70.3%
SAN DIEGO
MISSION VALLEY
Centerside II (c) 265,672 92.6%
Crossroads (c) 133,553 100.0%
SAN FRANCISCO
BURLINGAME
Bay Park Plaza (c) 257,058 100.0%
One Bay Plaza (c) 174,941 99.1%
FINANCIAL DISTRICT
120 Montgomery (c) 387,887 92.3%
188 Embarcadero (c) 84,256 98.9%
201 California (h) 218,142 90.8%
One Post (c) 387,510 99.0%
REDWOOD CITY
Seaport Centre (c) 463,422 100.0%
SAN BRUNO
Bayhill (c) 495,119 96.3%
SAN MATEO
Peninsula Office Park (c) 480,477 97.6%
<CAPTION>
Pre-Leased
PRIMARY MARKET O SF % Leased SF % Vacant SF %
SUB MARKET
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
PACIFIC REGION 0
LOS ANGELES 0
BRENTWOOD 0
West Wilshire (c) - 0.0% 222,497 94.4% 13,290 5.6% S
GLENDALE 0
700 North Brand (c) - 0.0% 190,690 94.2% 11,841 5.8% S
SANTA MONICA 0
429 Santa Monica (c) 1,887 2.3% 72,803 87.5% 10,440 12.5% S
Commerce Park (c) - 0.0% 74,043 78.5% 20,324 21.5% S
Janss Court (c)(l) - 0.0% 125,709 100.0% - 0.0% S
Searise Office Tower (c) - 0.0% 122,296 100.0% (4) 0.0% S
Wilshire Palisades (h) - 0.0% 185,698 99.5% 1,016 0.5% S
WESTWOOD 0
Warner Park Center (c) - 0.0% 57,366 100.0% - 0.0% S
OAKLAND 0
BERKELEY 0
Golden Bear Center (c) - 0.0% 158,802 98.9% 1,785 1.1% S
CONCORD 0
Corporate Centre (c) - 0.0% 314,502 95.5% 14,846 4.5% S
PLEASANTON 0
Park Plaza (c) - 0.0% 87,040 100.0% - 0.0% S
PeopleSoft (c) - 0.0% 277,562 100.0% - 0.0% S
SAN RAMON 0
Norris Tech (c) 9,600 3.7% 260,513 100.0% - 0.0% S
ADP Plaza (c) - 0.0% 285,857 95.2% 14,451 4.8% S
WALNUT CREEK DOWNTOWN 0
1600 South Main (c) - 0.0% 81,588 98.0% 1,689 2.0% S
YGNACIO VALLEY 0
2700 Ygnacio Valley Road (c) 1,010 1.0% 102,347 99.2% 867 0.8% S
ORANGE COUNTY 0
AIRPORT 0
18301 Von Karman (c) 5,691 2.6% 193,793 88.3% 25,715 11.7% S
TOWN & COUNTRY 0
2677 North Main (c) 15,950 7.5% 201,068 94.3% 12,250 5.7% S
UNCLASSIFIED WEST ORANGE COUNTY 0
Bixby Ranch (c) 7,544 2.7% 272,056 98.1% 5,233 1.9% S
SACREMENTO 0
POINT WEST/TRIBUTE 0
Exposition Centre (c) - 0.0% 51,293 70.3% 21,678 29.7% S
SAN DIEGO 0
MISSION VALLEY 0
Centerside II (c) - 0.0% 265,672 92.6% 21,277 7.4% S
Crossroads (c) - 0.0% 133,553 100.0% - 0.0% S
SAN FRANCISCO 0
BURLINGAME 0
Bay Park Plaza (c) - 0.0% 257,058 100.0% - 0.0% S
One Bay Plaza (c) - 0.0% 174,941 99.1% 1,592 0.9% S
FINANCIAL DISTRICT 0
120 Montgomery (c) 9,417 2.2% 397,304 94.5% 23,006 5.5% C
188 Embarcadero (c) - 0.0% 84,256 98.9% 927 1.1% C
201 California (h) 11,683 4.9% 229,825 95.7% 10,405 4.3% C
One Post (c) - 0.0% 387,510 99.0% 3,940 1.0% C
REDWOOD CITY 0
Seaport Centre (c) - 0.0% 463,422 100.0% (4) 0.0% S
SAN BRUNO 0
Bayhill (c) - 0.0% 495,119 96.3% 19,136 3.7% S
SAN MATEO 0
Peninsula Office Park (c) 11,067 2.2% 491,544 99.9% 500 0.1% S
</TABLE>
23
<PAGE>
<TABLE>
<CAPTION>
PRIMARY MARKET Occupied SF %
SUB MARKET
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
SAN JOSE
CBD
10 Almaden (c) 294,768 100.0%
CAMPBELL
Pruneyard Inn (c)(g)
Pruneyard Office (c)(f) 338,416 95.4%
Pruneyard Shopping Center (c) 227,865 90.3%
PALO ALTO
Embarcadero Place (c) 192,081 100.0%
VENTURA
CONEJO VALLEY
Agoura Hills (c) 114,982 99.8%
Westlake Spectrum (c) 115,636 97.2%
- -------------------------------------------------------------------------------
PACIFIC REGION TOTAL/WEIGHTED AVERAGE 7,927,626 95.7%
- -------------------------------------------------------------------------------
PORTFOLIO TOTAL/WEIGHTED AVERAGE 17,160,414 95.9%
===============================================================================
<CAPTION>
Pre-Leased
PRIMARY MARKET SF % Leased SF % Vacant SF %
SUB MARKET
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
SAN JOSE 0
CBD 0
10 Almaden (c) - 0.0% 294,768 100.0% 41 0.0% C
CAMPBELL 0
Pruneyard Inn (c)(g) S
Pruneyard Office (c)(f) 12,871 3.6% 351,287 99.1% 3,342 0.9% S
Pruneyard Shopping Center (c) - 0.0% 227,865 90.3% 24,345 9.7% S
PALO ALTO 0
Embarcadero Place (c) - 0.0% 192,081 100.0% - 0.0% S
VENTURA 0
CONEJO VALLEY 0
Agoura Hills (c) - 0.0% 114,982 99.8% 226 0.2% S
Westlake Spectrum (c) - 0.0% 115,636 97.2% 3,354 2.8% S
- ---------------------------------------------------------------------------------------------------------------------------
PACIFIC REGION TOTAL/WEIGHTED AVERAGE 86,720 1.0% 8,014,346 96.8% 267,508 3.2%
- ---------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TOTAL/WEIGHTED AVERAGE 192,827 1.1% 17,353,241 97.0% 533,668 3.0%
===========================================================================================================================
</TABLE>
24
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