A Fresh Take on CRE

Midtown Strengthens, Downtown Softens Further — Grubb & Ellis NY Market Trends Q1 2010

First Quarter 2010 Office Market Highlights:

• Tenant demand driving availability down in Midtown and Midtown South

• Leasing activity up 14% compared to first quarter 2008

• Downtown fundamentals softening with increase in large block inventory

• Average transaction size continues to drop, averaging 10,090 square feet -- 43% lower than previous 13 years

• Asking rents stabilized -- should remain flat through 2010