New Haven County Market Overview November 2009

1. New Haven County Market Overview November 2009 Presented by: Steven K. Inglese New Haven Group, Inc. Brokers of Investment Properties & Development Sites www.TheNewHavenGroup.com 203-773-3060

2. Introduction • Where’s the distress? • Early 1990’s compared to today • Education & Healthcare Driving Economy • Softer landing and quicker jump start

3. Size of Industries 25% 19% 18% 17% 16% 13% 12% 11%

4. Overview • Introduction • Office Market • Industrial Market • Apartment Market • Investment Sales Market • City of New Haven

5. Office Market Stats • Total Market Size: 28 million s/f -- 11.4% Vacancy • City of New Haven: 8.9 million s/f -- 9% Vacancy (this excludes Yale University space) • Total Vacancy Rate down slightly from 2008 • Net Absorption = 200,000 s/f Stats Per Costar

6. 2009 Office Lease Deals Covidien – 190,000 sf 555 Long Wharf DTC – 18,000 sf 2321 Whitney Ave Leclair Ryan–14,000 sf 545 Long Wharf

7. 2009 Office Lease Deals Nature Conservancy – 12,000 sf 55 Church street Ameriprise – 8,000 sf 545 Long Wharf

8. Medical Office Development 863 N. Main St - Wallingford Pomeroy Ave, Meriden 70,000 s/f Midstate 48,000 s/f – Midstate

9. Office Rents & Expenses • Class A suburban - $18 to 22/sf • Tenant Improvements - $15 to $25/sf • Class A New Haven rents ranging from $21 to $35/sf • Rent Concessions prevalent • Negative rental growth seen in the market over the past decade • Operating expenses for suburban class A buildings in the $9 to $11/sf range • Operating expenses for CBD class A is $13 to $14/sf

10. Industrial Market Stats • Market Size: 59 million s/f • Vacancy Rate as of 9/09: 12.1%, 9/08 Vacancy Rate 11.4% (per Costar) • Minimal New Lease Activity • Corporate downsizing – Pratt & Whitney • Lease rates for larger class A spaces are in the $5 to $6/sf nnn range • Lease rates for B product in the $3.75 to $4.50 sf range • Wallingford – 7 Northrop Rd – new 45,000 sf industrial – 28’ high being delivered in January 2010. Asking $6.95/sf plus $1.70 in nets

11. Apartments – City of New Haven • 1000 new units over the past 6 years • 475 units under construction • Class A apt Rents =$1.90 to $2.50/sf • Class A vacancy rate = 2.5%

12. Annual Sale Transactions 42 35 34 30 29 28 27 25 25 22 18 17 12 6 4 Per Conn-Comp

13. Largest deals in last 12 months 55 Church St -120,000 sf office $8 mm

14. 55 Church St – 129,000 s/f Office (2 Buildings) Dec 2008 Sale 2004 Sale Vacancy Rate – 18% In Place NOI - $590,000 Sale Price- $7.3 MM Cap Rate – 8.1% • Vacancy Rate – 30% • In Place NOI - $515,000 • Sale Price - $8 MM • Cap Rate – 6.4%

15. Largest deals in last 12 months 205 Church St – Hotel Conversion $10.75 mm 165,000 sf (partnership buyout) $60,000 per key

16. Largest deals in last 12 months 37 Sharon Rd, Waterbury –156 units $10.6 mm - $68k per unit

17. Largest deals in last 12 months 299 Main St, E. Haven – 94 units $8 mm- $85k per unit

18. City of New Haven • The Yale Economy • Live/Work City • Access to Mass Transit • Major Development Occurring

19. Leading Employers • Yale University • Yale New Haven Hospital • St. Raphael’s Hospital

20. New Haven CBD

21. Smilow Cancer Center $467 million – 500,000 s/f

22. 55 Park Street 150,000 s/f Medical Lab $93 million 2 Howe St 24 Apts, Medical office, 850 space garage $50 million

23. 430,000 s/f Yale Research Facility $176 million Cost

24. 360 State Street 475 Apartments – 26 story tower $150 million

25. Union Station

26. In Closing • Limited lease activity • Sales market slow but will improve velocity in 2010 • Healthcare and Education poised to rebound the economy

27. New Haven County Market Overview November 2009 Presented by: Steven K. Inglese New Haven Group, Inc. Brokers of Investment Properties & Development Sites www.TheNewHavenGroup.com 203-773-3060