BOMA/Hawaii April 13, 2010

1. BOMA/Hawaii April 13, 2010 Experience the Power of the BOMA Network

2. The State of the Economy • Global markets • U.S. unemployment • Commercial real estate • Debt gap • Investment opportunities • Vacancy rates • Rental rates Experience the Power of the BOMA Network

3. What We’ve Seen … San Francisco: vacancies at 15%; tech sector is gaining, as is healthcare. Shorter-term renewals. Miami: mothballed two buildings until at least 2011 due to the soft leasing market. Orlando: vacancies at 18%, unemployment keeping activity low. San Diego: overall net absorption still negative, but fourth quarter 2009 showed significant growth. Seattle: vacancy rates just crossed 20% Experience the Power of the BOMA Network

4. Stabilization in Office Sector Jobs • Office sector employment increased for the fourth consecutive month in December, adding 48,000 net new jobs. • Financial sector posted its first increase in employment since July 2007 adding 4,000 jobs. • Since the end of August, office-using employment is up 154,000 job. Source: January 27 CoStar Advisor Experience the Power of the BOMA Network

5. Pulse of the Industry Survey ResultsMost Pressing Challenges for our Members Experience the Power of the BOMA Network

6. Supporting Commercial Real Estate in a Down Economy • We are the solutions providers, the leading group, the place to network • Helping the industry navigate the challenges of a distressed market with advocacy, resources and information Experience the Power of the BOMA Network

7. National Issues Conference Job creation Credit/liquidity Tax (leasehold depreciation and carried interest) Energy (incentives and building codes) Codes Advocacy, and BOMA’s Top Priorities Experience the Power of the BOMA Network

8. CRE’s Calling Card • New BOMA publication: “The Contribution of Office Building Operating Outlays on the US and States’ Economies” • Highlights: • The 5.034 billion s.f. of private office space located within the markets served by BOMA’s locals generated $40.8 billion in direct operating outlays in 2009 • The $40.8 billion in direct office building operating outlays in 2009 contributed a total of $118.4 billion to the U.S. economy • Executive summary and breakdown by local is available online; full report will be available by month’s end

9. Honolulu’s Impact • Total Outlay (Operating Expenses) • $93 million • Contribution to State’s Economy (GSP) • $183 million • New Personal Earnings • $61 million • Jobs Supported • 1,669 jobs

10. Showing You the Money • Brownfields Remediation Tax Incentive • Energy-Efficient Commercial Buildings Tax Deduction • Leasehold Depreciation • Construction Costs Avoided from Energy Code Changes • Lost Lease Income Avoided Experience the Power of the BOMA Network

11. The Green Movement 7 Point Challenge (100+ Endorsers) CRE Energy Alliance/Dept of Energy 2007, 2008, 2009 and 2010 Energy Star Partner of the Year 2009 EPA Climate Award BOMA Energy Efficiency Program (BEEP)/Sustainable Operations Series (SOS) Green Lease Guide BOMA Energy Performance Contract (BEPC) Working with EPA/Energy Star®, USGBC, GBI, CCI, ASHRAE, BOMA Canada BOMA is the leader in operational solutions, innovation and best practices.

12. Validation and Industry Recognition of Buildings that demonstrate Best Practices encompassing all major areas of Building Management and Operations Building operations and management Life safety/security/risk management Training and education Energy Environmental/sustainability Tenant relations/community involvement 360 Performance Program Experience the Power of the BOMA Network

13. Education Practical courses to help you recognize opportunities in this downturn Webinars, eSeminars Foundations of Real Estate Management 2010 Medical Office Buildings and Healthcare Facilities Conference May 5-7, Hyatt Regency Chicago 2010 Conference & The Every Building Show June 27-29, Long Beach, California Experience the Power of the BOMA Network

14. Research, Standards & Benchmarking Experience Exchange Report (EER) 2010 Survey Adoption of Policy on Energy & Green Building Codes BOMA Measurement Standards NEW: Gross Area of a Building: Methods of Measurement NEW: Office Buildings: Standard Methods of Measurement and Calculating Rentable Area Experience the Power of the BOMA Network

15. Financial & human capital Predominantly Baby Boomer workforce Few young professionals Step 1 Job description Property and asset management focus “Old boys club” Clear vision and strategic plan Recruitment and retention The Challenge Experience the Power of the BOMA Network

16. Michael & Chloe StevensFuture BOMA Members

17. Step 2: Develop Great Programs BOMA/Seattle College Career Day Young Professionals Program BOMA/San Francisco Career Success Series Foundations of Real Estate Management BOMA/Greater Minneapolis Experience the Power of the BOMA Network

18. Make the most of technology Be flexible Go green Emphasize career development Food for Thought Experience the Power of the BOMA Network

19. Step 3: Bring on the Interns 62 percent of new hires have internship experience Employer benefits Company buy-in ROI Experience the Power of the BOMA Network

20. Step 4: Think Comprehensively Don’t overlook any potential employee pool Focus on retention Experience the Power of the BOMA Network

21. BOMA Sustaining PartnersBOMA: The partner of choice … Cornerstone AlliedBarton Security Services IB Roof Systems Ingersoll Rand Kimberly-Clark Professional* Naylor ThyssenKrupp Elevator Trane Leadership Circle ISS Facility Services SIEMENS UGL Unicco ValleyCrest Supporting Acuity Brands Lighting ChemSearch Orkin Experience the Power of the BOMA Network

22. The Power of BOMA’s NetworkThink Globally, Act Locally Premier business solution provider Recognized industry leadership Unbeatable member network Best practices Follow me on Twitter! JimPeckBOMA www.boma.org Experience the Power of the BOMA Network