Brian Gordon Demand Quotations

Only 35 to 40 percent of future projects are expected to move forward by 2010. There is insufficient market demand to absorb all of the units currently in the development pipeline.

Stable demand and rising land values have placed upward pressure on pricing resulting in a 14.4 percent increase in average asking rates in only six months. With robust sales activity and mom-and-pop operators seeking expansion opportunities, we believe there is room for additional increases in newly constructed retail centers.

We're looking for demand to continue to stabilize as projects move forward. It is slowing down, there's no doubt about it.

Despite above average market expansions through the first quarter of 2006, the office sector held its ground as demand nearly matched new supply. The amount of space that came online during the current quarter matched last year's record-setting quarterly average, and was well above the nearly one-half million square feet quarterly average posted during the past decade.

Through the first half of 2005, supply and demand has remained in relatively stable balance. However, compared to historical activity levels, the amount of space completed this year has been somewhat modest, but we expect the pace to quicken during the second half of this year.