Grubb & Ellis Realty Investors Secures 47,000 -F Lease at Lake Center IV in New Jersey

SANTA ANA, CA– Grubb & Ellis Realty Investors, LLC has secured a 47,000 square-foot lease at Lake Center IV, (top left photo) a four-story Class A office building located in Marlton, N.J., owned and managed on behalf of tenant-in-common investors.

Conner Strong Companies Inc., a leading provider of property and casualty insurance and employee benefits products and services with clients in all 50 states and abroad, has signed a 10-year lease agreement to occupy the third and fourth floor of Lake Center IV.

The space makes up more than 50 percent of the building. The company will take occupancy in March 2009.
“The large amount of space became available at Lake Center IV when the mortgage lending company that previously occupied the space dissolved,” explained Kent Peters, (top right photo) executive vice president of Asset Management, Grubb & Ellis Realty Investors.

“We were able to backfill the space quickly with a high-quality tenant and I couldn’t be more pleased with our results on behalf of the tenant-in-common owners of this asset.”

Purchased by Grubb & Ellis Realty Investors in May 2006, Lake Center IV is situated on approximately eight acres of land within a roughly 19 acre office park, and includes walking and jogging paths overlooking two lakes.

Anne Klein, senior vice president, and Joe Sklencar Sr., senior associate, of Grubb & Ellis’ Marlton office negotiated the lease on behalf of Grubb & Ellis Realty Investors.

“When we learned the space was being vacated, we began contacting every decision maker in the marketplace to make sure we saw all large deals taking place that we could become involved with,” said Klein.

Contacts: Julia McCartney, 714.975.2230, julia.mccartney@grubb-ellis.com

Damon Elder, 714.975.2659, damon.elder@grubb-ellis.com

Hotel Room Rates Fall the World Over

LONDON--UK and global hotel prices have fallen for the first time in four years, according to a comprehensive index compiled by booking agent Hotels.com.

Prices in the UK fell by 4% year-on-year in the third quarter, while international prices fell by 3%.

Rates fell as hotels tried to entice hard-up travellers with cheap offers.

But the weakening pound, together with slight increases in European rates, meant that some continental hotels cost 30% more for UK holiday makers.

The average hotel price in the UK fell from £101 (US $151.78) in the third quarter last year to £97 (US $145.19) this year.

Prices in Scotland fell the most, with rates in Inverness, (top left photo) for example, falling by 15% to an average of £94 (US $140.70).

Bath was the most expensive place to stay, with an average room costing £142 ($US $212.56). Nottingham was the cheapest, with rates averaging just £65 ($US $97.29).

"Price falls across the UK mean that there are currently great deals to be had, as more affordable accommodation is on offer," said David Roche, (top right photo) president of Hotels.com Worldwide.

And it wasn't just the UK where prices fell.

Global rates were driven down by an average 5% price fall in America, with rates in Las Vegas falling by 20%. (Palazzo Resort, Las Vegas, middle left photo)

But the weak pound meant UK travellers derived less benefit from these price cuts.

In fact, because rates in Europe actually rose in the third quarter, they ended up paying considerably more. In some cases, this was as much as a third more.

"However, European prices are starting to come down and there is likely to be an increasing number of good deals," said Mr Roche.

The most expensive destination globally was Moscow, with the average room costing £207 (US $309.84). The cheapest in their index was Las Vegas, at £58 ($86.82).

The Hotels.com Hotel Price Index is based on prices paid by customers at 68,000 hotels across 12,500 locations around the world.

Foreclosure Activity Decreases 7% in November

Numbers Are Still Up 28 Percent From November 2007

IRVINE,CA– Dec. 11, 2008 – RealtyTrac®, the leading online
marketplace for foreclosure properties, today released its November 2008 U.S. Foreclosure Market Report™, which shows foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 259,085 U.S. properties during the month, a 7 percent decrease from the previous month but still up 28 percent from November 2007.

The report also shows one in every 488 U.S. housing units received a foreclosure filing in November.

“Foreclosure activity in November hit the lowest level we’ve seen since June thanks in part to
recently enacted laws that have extended the foreclosure process in some states, along with
more aggressive loan modification programs and self-imposed holiday foreclosure moratoriums introduced by some lenders,” said James J. Saccacio, (top right photo) chief executive officer of RealtyTrac.

“There are several indications, however, that this lower activity is simply a temporary lull before another foreclosure storm hits in the coming months.

“Delinquencies on loans not yet in the foreclosure process jumped to nearly 7 percent in the
third quarter, a record high, according to the Mortgage Bankers Association,” Saccacio continued.

”And more than half of the homeowners who received loan modifications to reduce
monthly mortgage payments in the first half of 2008 are already delinquent on their loans
again, according to the U.S. Office of Thrift Supervision. Many of these delinquencies could
turn into foreclosures next year.”

Nevada, Florida and Arizona posted the top state foreclosure rates. Nevada foreclosure activity in November decreased nearly 4 percent from the previous month, but the state maintained the nation’s No. 1 foreclosure rate, with one in every 76 housing units receiving a foreclosure filing during the month — more than six times the national average. Foreclosure filings were reported on 13,962 Nevada properties, up 109 percent from November 2007.

Florida foreclosure activity in November was also down from the previous month, but the state’s foreclosure rate moved up to the No. 2 spot thanks to an even bigger monthly decrease in Arizona. One in every 173 Florida housing units received a foreclosure filing during
the month, nearly three times the national average.

With one in every 198 housing units receiving a foreclosure filing, Arizona posted the nation’s
third highest foreclosure rate in November despite a nearly 25 percent decrease in foreclosure
activity from the previous month. Foreclosure filings were reported on 13,136 Arizona
properties during the month, up nearly 128 percent from November 2008.

Other states with foreclosure rates ranking among the top 10 were California, Michigan,Georgia, Ohio, Colorado, Utah and Idaho.

For a complete copy of RealtyTrac's news release and market-by-market analysis, please contact Tammy Chan, Atomic PR, 415-402-0230, tammy@atomicpr.com

Grubb & Ellis Announces Final Voting Results for 2008 Annual

Certified Results Confirm Re-Election of All Three Grubb & Ellis Directors and Defeat of All of Dissident’s Candidates and Bylaw Proposals

SANTA ANA, CA– Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, announce IVS Associates, Inc., the independent inspector of election, has certified the voting results for the company’s 2008 Annual Meeting of Stockholders held on December 3, 2008.

The final results are identical to the preliminary numbers reported earlier on Dec. 10 and confirm that Grubb & Ellis stockholders voted to re-elect the incumbent Board’s three independent director nominees – Harold H. Greene, Devin I. Murphy and D. Fleet Wallace and ratified the appointment of Ernst & Young, LLP as the company’s independent public accountants.

The results also confirm that dissenting stockholder Mr. Anthony Thompson’s (top right photo) three candidates and his two bylaw proposals were rejected.

Contact: Investors: Laurie Connell / Amy Bilbija MacKenzie Partners, Inc. 212.378.7071 / 650.798.5206 lconnell@mackenziepartners.com / abilbija@mackenziepartners.com

HFF secures $6.19M financing for The Hampshire Companies

FLORHAM PARK, NJ – The New Jersey office of HFF (Holliday Fenoglio Fowler, L.P.) has secured $6.19 million in financing on behalf of The Hampshire Companies, a full‑service, private real estate investment fund manager, for Berkeley Heights Self Storage (top right photo) in Berkeley Heights, New Jersey.

HFF senior managing director Jon Mikula (top left photo) and associate director Michael Klein (bottom right photo) worked exclusively on behalf of The Hampshire Companies to secure the financing through US Bank.

Proceeds are being used to refinance existing debt and complete a capital improvements program that includes façade and signage improvements as well as the construction of additional units.

Berkeley Heights Self Storage has 662 units totaling 51,520 square feet, which range in size from 5’ x 5’ to 10’ x 20’. The two three-story buildings are currently 65% leased.

The borrower plans to add 55 15’ x 15’ units on the first floor of Building A increasing the property to 62,558 square feet within 717 units. Berkeley Heights Self Storage is located at 310 Snyder Avenue in downtown Berkeley Heights.

The Hampshire Companies is a full-service, private real estate investment fund manager for both high net-worth investors and institutions based in Morristown, New Jersey with a portfolio of more than 15 million square feet of commercial space and assets valued at more than $2 billion. Additional information on The Hampshire Companies and its Funds is available online at http://www.hampshireco.com/.

HFF (NYSE: HF) operates out of 18 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry.

HFF offers clients a fully integrated national capital markets platform including debt placement, investment sales, structured finance, private equity, note sales and note sale advisory services and commercial loan servicing. www.hfflp.com.

Contacts:

Jon Mikula, HFF Senior Managing Director, (973) 549-2000, jmikula@hfflp.com

Myra F. Moren, HFF Director, Marketing, (713) 852-3500, mmoren@hfflp.com

HFF arranges $28.2M first mortgage financing for Oakland, CA multifamily community

HARTFORD, CT – The Hartford office of HFF (Holliday Fenoglio Fowler, L.P.) has arranged a $28.2 million first mortgage financing for Landing at Jack London Square, (top right photo) a 282-unit, Class A waterfront multifamily community in Oakland, California.

Working exclusively on behalf of Legacy Partners Landing LLC, with managing partner Cornerstone Real Estate Advisers, HFF senior managing director Dana Brome (top left photo) and director Susan Larkin (middle right photo) placed the five-year, fixed-rate loan with Freddie Mac (Federal Home Loan Mortgage Corporation). HFF will also service the loan.

“The FHLMC Floating Rate program was chosen because the interest rate was indexed to their reference notes, which are currently running approximately 100 bp under Libor, which provided a fantastic coupon for the borrowers,” said Brome.

The Landing at Jack London Square is located at 101 Embarcadero Way along the banks of the Oakland Estuary and adjacent to Jack London Square in Oakland.

Completed in 2000, the 95% occupied property has four residential buildings with studio, one- and two-bedroom units. Community amenities include a lap swimming pool, barbecue pits, garage parking, fitness center, clubhouse and business center.

The property is also adjacent to the Bay Area Trail, a paved walking and biking trail along the Oakland Estuary.

“The property has an excellent location adjacent to Jack London Square, a popular tourist attraction with numerous stores, restaurants, hotels, an Amtrak station and a ferry dock,” added Brome.

Cornerstone Real Estate Advisers was established in 1994 to provide private real estate equity investment management services for their parent corporation, Massachusetts Mutual Life Insurance Company (MassMutual), and tax-exempt and taxable institutions. Since then, they have added management of public real estate securities to our array of services.

Contacts:

Dana E. Brome, HFF Senior Managing Director, (860) 275-6199, dbrome@hfflp.com

Myra F. Moren, HFF Director, Marketing, (713) 852-3500, mmoren@hfflp.com

HFF secures $10M financing for Chicago area retail center

CHICAGO, IL – The Chicago and New York offices of HFF (Holliday Fenoglio Fowler, L.P.) has secured $10 million in financing for Cermak Plaza Shopping Center,(top left photo) a 279,622-square-foot community retail center in Berwyn, Illinois.

HFF director Matthew Schoenfeldt (top right photo) and senior managing director Jay Marshall (middle left photo) worked on behalf of Concordia Realty Management Inc. to secure the 10-year fixed-rate loan through ING Investment Management. The loan will be serviced by HFF and proceeds will be used for a capital improvement plan.

Originally developed in 1956, Cermak Plaza Shopping Center will undergo a complete renovation consisting of aesthetic and signage upgrades, parking lot repaving, tenant improvements and relocations, and the development of a ‘Food 4 Less’ store on a ground-leased pad delivered to national grocer Kroger.

The property is currently 78% occupied by tenants including Office Depot, Marshalls, Walgreens and McDonald’s. Cermak Plaza Shopping Center is situated on the corner of Harlem Avenue and Cermak Road approximately 12 miles west of downtown Chicago.

Since 1989, Concordia Realty has developed, redeveloped, invested in, operated, managed and sold in excess of $500 million worth of commercial real estate throughout the United States.

Contacts:

Matthew R. Schoenfeldt, HFF Director, (312) 528-3650, mschoenfeldt@hfflp.com

Jay B. Marshall, HFF Senior Managing Director, (212) 245-2425, jmarshall@hfflp.com

Myra F. Moren, HFF Director, Marketing, (713) 852-3500, mmoren@hfflp.com

NAHB Trims $11.5M from Budget and Eliminates 51 Positions

tWASHINGTON, DC--Jerry M. Howard, (top right photo) President and CEO of the National Association of Home Builders (NAHB), has issued the following statement on staff and operating cutbacks that will result in the savings of $11.5 million for the association in 2009:

"With our builders and other members of the housing industry confronting the most serious recession in more than 50 years, we are announcing today that NAHB is cutting $11.5 million from its operating budget to ensure that NAHB remains the premier advocacy and service trade association for the residential construction industry.

"In my 20 years at NAHB, including the past eight years as President and CEO, this is by far my toughest and most difficult decision. The staff cutbacks touch on the careers of dedicated professionals who have been committed to the mission of our industry.

"They are good, talented and hard-working people. Nevertheless, the stark financial realities confronting our association and industry cannot be ignored.

"Projected income from NAHB's two principal sources -- membership and trade shows - will be down significantly in 2009. To balance NAHB's operating budget, we will be eliminating 52 positions of which half are currently vacant.

"The layoffs will take effect immediately. In addition, we will also be sharply reducing expenditures previously approved for 2009.

"By taking this action now, we help position the association to maintain its advocacy leadership and vital services for an industry struggling in the toughest economic environment seen in generations."

CONTACT: Paul Lopez, 202 266 8409. plopez@nahb.com and http://www.nahb.org/

RECI Asks: How Long Will Mortgage Gridlock Paralyze Commercial Realty Markets?

Funding Stalemate Stalls Markets

CHICAGO, IL--The Real Estate Capital Institute finds that as the year closes, the dramatic turn of recent events in the U.S. financial markets clearly redefines commercial mortgage metrics to conservative levels not seen in years.

Today, massive structural changes dictate mortgage underwriting based on highly conservative and transparent terms and conditions.

And in particular, with few exceptions lenders are unwilling to provide funds at acceptable leverage levels (e.g., 75%-80% loan-to-value) as compared to the any year within the past decade. Under such circumstances very few loans are funded, resulting in mortgage market gridlock.

Investors are looking for clues as to how long the gridlock will last. In other words, when will real estate capital markets return to a “normal” cycle?

According to discussions with advisory board members of the Real Estate Capital Institute, the general consensus regarding the overall direction of today’s realty capital cycle is outlined as follows:

The Peak: The overall upward trend started in about 2004 and rapidly accelerated in 2005-06. The real estate capital markets peaked by the end of 2006 and early 2007.

Current Cycle: Since interest rates and corresponding mortgage spreads continue rising, rate relief is not in site until domestic markets find more stability within the bond markets, in particular. The remainder of 2008 will be highly tumultuous as investors try to sort of the Wall Street Bailout and access “real” property value

.
The Bottom: Many believe that the current market doldrums are at least one to two more years in the making with 2009 being a flat, or declining year.

The Future: Values will settle to more “normal” levels by about 2011. Market volatility remains a key concern, but supply and demand dynamics for most types of commercial properties are within general balance. Longer recoveries are expected in some of the costal markets which were severely overvalued.

Given this two-to-three-year outlook, the new real estate cycle slogan might sound like "Tow the line in 2009; If not then, try 2010."

(Wall Street, bottom right photo)

Regardless of exactly how long the current malaise continues, almost everyone agrees the realty capital markets are in for a wild ride the next few years.

The Real Estate Capital Institute®
3517 West Arthington Street
Chicago, Illinois USA 60624
Contact: Nat Zvislo, Research Director
Toll Free 800-994-RECI (7324)
director@reci.com and http://www.reci.com/

MBA Says Credit Markets and Economy Add Pressure to Commercial Mortgage Performance

Washington, DC-- Delinquency rates continued to tick up in the third quarter for most commercial/multifamily mortgage investor groups, but remained at the lower end of their historical ranges, according the third quarter Commercial/Multifamily Delinquency Report from the Mortgage Bankers Association (MBA).

"The frozen credit markets and deteriorating economic conditions are placing increased pressure on the performance of commercial and multifamily mortgages," said Jamie Woodwell, (top right photo) MBA's Vice President of Commercial Real Estate Research.

"Commercial/multifamily mortgages have not seen the same kind of deterioration in performance witnessed among other real estate loans, and at the end of the third quarter, delinquency rates for every investor group remained at the lower end of their historical ranges. That being said, delinquency rates for nearly every investor group did see increases during the third quarter, and economic and credit market stress is likely to continue that trend."

Between the second and third quarters, the 30+ day delinquency rate on loans held in commercial mortgage-backed securities (CMBS) rose 0.10 percentage points to 0.63 percent (Corrected).

The 60+ day delinquency rate on loans held in life company portfolios rose 0.03 percentage points to 0.06 percent.

The 60+ day delinquency rate on multifamily loans held or insured by Fannie Mae rose 0.05 percentage points to 0.16 percent.

The 60+ day delinquency rate on multifamily loans held or insured by Freddie Mac fell 0.02 percentage points to 0.01 percent. The 90+day delinquency rate on loans held by FDIC-insured banks and thrifts rose 0.20 percentage points to 1.38 percent (Corrected).

The MBA analysis looks at commercial/multifamily delinquency rates for five of the largest investor-groups: commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies, Fannie Mae and Freddie Mac. Together these groups hold more than 80 percent of commercial/multifamily mortgage debt outstanding.

The analysis incorporates the same measures used by each individual investor group to track the performance of their loans. Because each investor group tracks delinquencies in its own way, delinquency rates are not comparable from one group to another.

Based on the unpaid principal balance of loans (UPB), delinquency rates for each group at the end of the second quarter were as follows:

. CMBS: 0.63 percent (30+ days delinquent or in REO);
. Life company portfolios: 0.06 percent (60+days delinquent);
. Fannie Mae: 0.16 percent (60 or more days delinquent)
. Freddie Mac: 0.01 percent (60 or more days delinquent);
. Banks and thrifts: 1.38 percent (90 or more days delinquent or in non-accrual) (Corrected).

To put these numbers in context, of 35,135 commercial/multifamily loans in life company portfolios, with a total unpaid principal balance of $253 billion, only 36 loans with an aggregate UPB of less than $144 million were 60+ days delinquent at the end of the quarter.

Of $1.2 trillion of commercial/multifamily mortgages at FDIC-insured banks and thrifts, only $18 billion was 90+ days delinquent.

CONTACT: Jason Vasquez, (202) 557-2950, jvasquez@mortgagebankers.org

Grubb & Ellis Facilitates Sale of Tucson Technology and Industrial Portfolio for $46.3M

TUCSON, AZ – Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, has facilitated the sale of a 606,027-square-foot industrial/R&D portfolio in Tucson.

Intercontinental Real Estate Corporation, a Boston-based real estate investment company, purchased the portfolio from a joint venture of the Muller Company and GE Real Estate for $46.3 million, or $73.40 per square foot. It is the largest investment sale completed in Tucson so far this year.

Ryan Gallagher, (top right photo) senior vice president, and Kelly Rohfeld, (top left photo) vice president, with Grubb & Ellis’ Institutional Investment Group represented the buyer and the seller in the transaction along with local market brokers Russ Hall and Steve Cohen of Picor Commercial.

The six-building portfolio, which consists of Tucson Technology and Commerce Center I, II, III, IV (bottom right photo) and Medina Business Center I & II, is situated on 50.92 acres immediately adjacent to Tucson International Airport.

Also included in the sale was an adjacent four-acre site for future development. The portfolio was 95 percent leased at the time of sale. Major tenants include: Ferguson Enterprises, UPS, Solon AG and United Collections Bureau.

“The new owner will benefit from the below market rents that are in place, the adjacent four-acre development site and existing tenants that want to expand in the future,” said Gallagher.

“The Airport Area submarket is currently 93 to 95 percent occupied and remains a highly sought after, strategic corporate location due to its proximity to the airport, climate, affordable labor pool, and the redundant power grid provided by the Airport Authority.”

This is the second significant transaction that Gallagher has completed in the Tucson market this year. In February, he represented the sale of a 136,000-square-foot office building in Tucson that was 100 percent leased to Intuit Inc. for $21.6 million.

Contacts:

Sharon Abar, 714.975.2185, sharon.abar@grubb-ellis.com

Damon Elder, 714.975.2659, damon.elder@grubb-ellis.com

Tourism in UAE affected by recession

LONDON--Analysis presented by Deloitte to hospitality leaders in the Middle East this week reports that despite tourist arrival and hotel performance growth to September, tourism volume in the United Arab Emirates (UAE) will slow due to the current economic conditions facing the important European outbound market.

(Dubai skyline, top left photo)

The analysis was shared during the Deloitte Global Tourism, Hospitality and Leisure industry meeting and lunch, the first to be held in the Middle East.

Europeans have seen a decline in the value of their investments and real estate. Combined with the unfavourable exchange rates between European currencies and the dirham, which has increased the cost of visiting the emirates by at least 25%, the UAE faces a challenging time in maintaining the growth enjoyed over the past three years.

Commenting, Alex Kyriakidis, (middle right photo) Global Managing Partner of Tourism, Hospitality & Leisure at Deloitte said:

“The long-term development vision of the UAE must continue and current conditions should not cause panic. No one is immune from the global economic crisis.

" The key is in broadening the UAE tourism offering to meet the needs of today’s tourists.

" There will be increased emphasis on value for money and the UAE will be competing for the European visitors – who account for over 40% of tourists – with Egypt,

"Turkey and the Far East as destinations which have not been affected by the strengthening of the dollar. The mid and limited service market is currently an underdeveloped sector in the UAE’s hotel supply and should be addressed promptly. Hoteliers should also look to different sales channels such as tour operators to broaden the distribution base.”

He added: “Another way of introducing more tourists to the emirates is to continue developing a diverse range of attractions such as theme parks, cultural attractions, museums and nature reserves to widen the appeal to different types of tourists such as families.”

(Abu Dhabi skyline, bottom left photo)

Commenting, Rob O’Hanlon, Tourism, Hotel and Leisure partner at Deloitte Middle East said: “Hotel performance remains very strong in Abu Dhabi with revenue per available room (revPAR) up 45% while Dubai’s revPAR grew 6.7% year-to-October 2008 according to STR Global.

To ensure that hotel performance remains solid, an increased marketing effort for the UAE as a whole is important.

"The other part of the puzzle is to align this strategy with the route expansion plans of Emirates and Etihad airlines, key drivers of the UAE’s tourism traffic.”

CONTACT: Sian Mannakee, Deloitte UK Public Relations, Phone: +44 20 7303 7883

PKF Predicts Sharp Drop in 2009 Hotel Revenue

ATLANTA, GA—The Lodging industry, like the auto industry, formally heard the bad news today from one of the leading research groups in the U.S.

“U.S. hotels have entered the initial stages of one of the deepest and longest recessions in the history of the domestic lodging industry,” according to a new report issued by Mark Woodworth, (top right photo) president of Atlanta-based PKF Hospitality Research.

Woodworth says hotel occupancy and revenue per room will be sharply reduced in 2009 and won’t start to improve until 2010.

However, for the major hotel owners, the news is cushioned by the fact that most of them will still come out of the downturn with a meager profit margin.

“Fortunately for U.S. hotel owners and lenders, the vast majority of properties are fiscally fit entering the current downturn,” believes Jack Corgel, (middle left photo) the Robert C.Baker Professor of Real Estate at the School of Hotel Administration at Cornell University and senior advisor to PKF-HR.

Corgel says unit-level profit margins are estimated to be 29.4 percent in 2008, well above the 26.1 percent long-term average. Interest coverage ratios for the hotels in PKF-HR’s Trends in the Hotel Industry exceed 1.7.

“While PKF-HR does not believe the current forecast will generate abundant hotel foreclosures and bankruptcies, operating conditions are at vulnerable levels and further deterioration could impact the solvency of U.S. hotels,” Corgel notes.

“In view of the significant volatility in the domestic and global economy, a negative bias on this outlook is appropriate,” he adds.

The 7.8 percent drop in RevPAR the hospitality research firm is now forecasting for 2009 will be the fifth largest annual decline in this important measure since 1930,” according to Mark Woodworth, president of PKF Hospitality Research.

Further, PKF-HR is forecasting the nation’s hotels will not experience a year-over-year quarterly increase in RevPAR until the second quarter of 2010.

The projected seven consecutive quarters of declining RevPAR, beginning with the just reported third-quarter decline of 1.1 percent, according to data from Smith Travel Research, marks the longest stretch of falling revenues endured by U.S. hotels since STR began tracking performance data in the late 1980s.

Woodworth says, “The speed and severity of the downturns in employment and income continue to accelerate.

“Given the strong correlation between these two economic measures and demand for lodging accommodations, we are forecasting 2.5 percent fewer occupied rooms in 2009. This follows an estimated 1.0 percent decline in demand for year-end 2008.”

Except for New Orleans, all of the 50 markets analyzed by PKF-HR are forecast to suffer a decline in RevPAR in 2009.

The main culprit for the decline in RevPAR is the forecast fall-off in demand. In 40 of the 50 markets, PKF-HR is forecasting a lower number of rooms to be occupied in 2009 as compared to 2008.

In 18 of these markets, an above average increase in the supply of hotel rooms “exacerbates the competitiveness of the marketplace.” Woodworth says.
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DeFosset Appointed to Board of Directors of National Retail Properties, Inc.

ORLANDO, FL, Dec. 9, 2008 /PRNewswire-FirstCall/ -- National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced that Don DeFosset (top right photo) has been appointed to the Board of Directors.

The company also announced the retirement of lead director Clifford R. Hinkle (middle left photo) and that Ted B. Lanier will assume the role of lead director. Mr. Hinkle served on the board since 1993.

"Cliff Hinkle has played an integral role in the history of NNN providing guidance and leadership as we grew from $23 million in assets in 1993 to more than $2.6 billion in assets today," said Craig Macnab,(bottom right photo) Chairman and Chief Executive Officer.

"He imparted timely direction and wisdom and brought a broad investment perspective. We sincerely thank him for his support and service to the company and wish him well."

Mr. Macnab continued: "Ted Lanier has been a director since 1988 and has provided a steady hand helping oversee the company's growth. As lead director he will continue playing a crucial role in the further development of NNN's value to shareholders."

Mr. Macnab added: "We're pleased to be adding a director of the caliber of Don DeFosset. He brings a wealth of diverse business experience and will be a valuable addition for our shareholders."

Mr. DeFosset is the former Chairman, President and Chief Executive Officer of Walter Industries, Inc., a diversified company involved in water infrastructure, flow control, water transmission products, metallurgical coal and natural gas, and homebuilding. He is a director of Regions Financial Corporation, Terex Corporation and EnPro Industries.

NNN acquires, owns, invests in, manages and develops properties that are leased primarily to retail tenants under long-term net leases.

As of September 30, 2008, NNN owned 990 Investment Properties in 44 states with an aggregate leasable area of 11 million square feet.

For more information on the company, visit http://www.nnnreit.com/.

Contact: Kevin B. Habicht, Chief Financial Officer, National Retail Properties, Inc., +1-407-265-7348

$70M financing arranged by HFF for mixed-use redevelopment in Linden, NJ

INDIANAPOLIS, IN – The Indianapolis office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it arranged $70 million in financing on behalf of Duke Realty Corporation for their mixed-use redevelopment of a former General Motors (GM) manufacturing plant in Linden, New Jersey. (top right site map)

HFF senior managing director Dave Keller (top left photo) and associate director David Ross worked exclusively on behalf of a joint venture between Duke and Stockbridge Real Estate Funds to secure the two-year, adjustable-rate loan with HSBC Bank USA and participants US Bank and The Private Bank.

Loan proceeds will be used to fund the acquisition and redevelopment of the property, including the demolition of the plant, addressing environmental issues and construction of the infrastructure required for future vertical development.

The 104-acre site is located in Linden, New Jersey along Routes 1 and 9 across from the Linden Airport and within close proximity to Port Newark and Port Elizabeth, New Jersey.

The vacant 2.7 million-square-foot GM facility was demolished this year for the proposed development of nearly 1.1 million square feet of modern bulk industrial space and additional retail development.

Currently, remediation work and infrastructure improvements are underway, with vertical construction of buildings anticipated to begin in 2009.

“Duke’s redevelopment plans for the Linden project are patterned on their recent success in redeveloping a former GM plant in Baltimore, Maryland,” said Keller. “In addition to Duke’s experience in Baltimore, the company has a wealth of experience in redeveloping strategic brownfield properties that will help ensure success in this New Jersey redevelopment.”

Founded in 1972, Duke Realty Corporation specializes in the ownership, construction, development, leasing, and management of office, industrial, and health care real estate.

The company owns, manages, or has under development more than 144 million rentable square feet in 24 major U.S. cities. Duke, which controls more than 7,100 acres of land for more than 107 million square feet of future development, also provides nationwide real estate solutions through its national development division.

Stockbridge Real Estate Funds is an independently-owned real estate investment manager focusing on opportunistic investments in major metropolitan markets.

Contacts:

David B. Keller, HFF Senior Managing Director, 317 630-3191, dbkeller@hfflp.com

Joel Reuter, Duke, VP of Communications, (317) 808-6137,

joel.reuter@dukerealty.com

Myra F. Moren, HFF Director, Marketing( (713) 852-3500

mmoren@hfflp.com