Industry Analysis – Commercial Real Estate

Executive Summary

The following report provides overview information on some of the largest commercial real estate brokerage firms in the United
States. Information on each firm includes key value propositions, commission policy, training programs, conferences, and online
presence. This section provides a concise overview of the current state of this market.

For the decade of the 2000’s, commercial real estate has oscillated wildly between bubble and bust. At the beginning of the decade,
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the dot-com bust and the terrorist attacks of September 11 led to specific distressed markets (as false demand led to depressed
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rents in Silicon Valley, Austin, and Boston). September 11 , while simply exacerbating some of the general economic decline caused
by the dot-com bust, did have an impact on attitudes toward commercial building operation, for instance, by increasing
expenditures for security equipment, communications, and business planning efforts.

This period was followed by an opposite and equal force which led to record transaction activity and nearly every commercial real
estate brokerage firm was engaged in a period of growth and expansion. The commercial uptick in 2005-2007 lagged slightly the
residential housing boom of 2003-2005, a period in which consumer confidence soared, housing values increased, and many
homeowners used these increases as a method of equity financing. Of course, as many know now (and a few knew then), that
bubble burst as housing prices fell at the same time mortgage term changes meant many homeowners defaulted. The impact on the
commercial real estate sector was a virtual elimination of credit. The result was near universal difficulty in establishing values due to
lack of market activity, comparable sales and short sales. From 2007 to 2009, the overall volume of assets traded went from $423
billion to $51.4 billion (lowest in 2000s).

The table below provides some indications that the commercial real estate industry is awaking from its doldrums over the period
2008 and 2009. According to a recent report produced by Marcus & Millichap, investor confidence (indicated by an established
confidence index) now stands at its highest level since inception and more than 50 points above its nadir reached in 2009. As the
table indicates, every firm included in the National Real Estate Investors Survey saw their global transaction activity increase by
double digit percentages from 2009 to 2010. Of course, the reader should keep in mind the very low starting point post financial
crisis, but the story it tells is one of potential opportunity over the next year or so provided credit markets increase their fluidity.
Only firms included in this report are indicated below. Indicators include transaction volume for 2009, 2010, numeric and percent
change, as well as volume per office – a general indication of unit productivity. Based on the results, firms are segmented into three
tiers in terms of market influence and position.

Firm 2009 2010 Change Share of Volume

2009 Volume 2010 Volume (2009-2010) Total Per
Rank ($Billion) Rank ($Billion) Number Percent Increase Offices Office
CB Richard Ellis 1 $97.2 1 $128.1 $30.9 32 33 438 $0.29
Jones Lang LaSalle 4 $47.0 2 $67.2 $20.2 43 22 750 $0.09
Cushman & Wakefield 3 $53.0 3 $66.8 $13.8 26 15 231 $0.29
Colliers International 2 $53.8 4 $59.6 $5.8 11 6 480 $0.12

NAI Global 6 $35.0 5 $45.0 $10.0 29 11 350 $0.13

Cassidy Turley 13 $13.0 10 $17.0 $4.0 31 4 60 $0.28
Marcus & Millichap 15 $9.6 12 $13.6 $4.0 42 4 76 $0.18
Grubb & Ellis 14 $10.2 13 $12.1 $1.9 19 2 100 $0.12

RE/MAX Commercial N/A 16 $5.1 N/A 331 $0.02

Coldwell Banker Commercial 18 $4.1 17 $5.0 $0.9 22 1 694 $0.01
Sperry Van Ness 19 $3.6 18 $4.6 $1.0 28 1 113 $0.04
Lee & Associates N/A 19 $4.4 N/A 42 $0.10
Transwestern 20 $3.3 20 $4.2 $0.9 27 1 28 $0.15
KW Commercial N/A
Totals $329.8 $423.2 $93.4 28 100 3,320 $0.13
Source: National Real Estate Investor, Top 25 Brokerages (2011); Note: Volume based on activity in 2009 and 2010. Office locations are generally US only. Share of
Total Increase column represents 2010 Volume as a percentage of total volume generated by all firms in the table. Volume Per Office expressed in $Billions.
 Industry Analysis – Commercial Real Estate

Industry Future Changes

Similar to many industries which rely on technology to maintain productivity or respond to customer needs, the commercial real
estate brokerage industry is reacting to these changes and developing new forms of interaction. In addition to these changes, there
are a number of trends one can illustrate as they become integrated into firm offerings to their clients.

The use of technology, in particular smartphones, has resulted in making client-firm interaction less personal, less face-to-face, and
more defined by text messaging, emailing and leveraging technology to accelerate the flow of information. The internet has also
influenced a number of other changes that have necessitated changes in agent skill sets as well as how firms leverage the use of
social media. The increasing use of social media has caused firms to begin marketing these tools to prospective clients as well as
making it much easier to network and emphasizing the importance of regional and national focus. Messaging on virtually all of the
firm websites seeks to market their services around the use of technology and leveraging regional/national level resources.

It is illustrative at this point to provide some information regarding how some of these firms compare in terms of their online
presence and the relative usability of their web sites. Technology, as noted, has resulted in the need for companies to provide access
to more information that may have in the past only been available to institutional clients. There is a fairly wide distribution in terms
of navigability, visual attractiveness, functionality, and intuitive page design across these firms. Among the 14, none of the firms
have a particularly poor online presence, though Lee & Associates is probably the lowest in terms of site content, usability and
access to information. While there is a fair amount of information on the site regarding the firm, the search functionality does not
provide a great deal of information on properties. The rest of the firms can be split into two general groups: good and better; the
former group includes Colliers International, NAI Global, Marcus & Millichap, RE/MAX Commercial, Coldwell Banker Commercial,
Sperry Van Ness, Transwestern and Keller-Williams Commercial. All of these sites provide the user to easily search properties,
allowing some to filter by a variety of variables (price, square footage, or detailed geography). A few – Coldwell Banker and KW
Commercial, provide the search page directly on the home page, eliminating the need to navigate to find the search link.

Very little separates sites just mentioned from those in the top tier: CB Richard Ellis, Jones Lang LaSalle, Cushman & Wakefield,
Cassidy/Turley, and Grubb & Ellis, but there are two areas where these sites at least appear to be more strategically designed. All of
these sites are generally visually pleasing and have organized content in a very intuitive manner (with some variation). Content is
organized in a similar manner across different levels of the site so there is an overarching structure that maintains continuity with
the home page. Rolling video on the home page also keeps the user engaged and can provide strategic messaging. The design
aspects are clean and professional across the site. Property listings are generally easy to find directly from the home page, and while
there is a varying degree of functionality, all of these sites provide a good deal of information on each property. Based on this
cursory overview, it does not appear that any of the sites allows for downloading of records for off-site analysis, something that may
become more popular with technologically savvy clients.

The last trend that appears to becoming more important to the commercial real estate industry is the increasing integration of
sustainability practices and “green” principles as a way to impact operational costs or as a marketing value for properties. Many of
the top firms as well as some of the smaller firms have made partnerships with green consultancies or sustainability firms and
provide for training around these concepts in their agent education curriculum.

Information Collected

The following report provides comparative information on each of the fourteen firms profiled. All of the information was obtained
publicly from firm websites, press releases, and publicly-available analysis as well as market reports. Only three of these firms (CB
Richard Ellis, Jones Lang LaSalle, and Grubb & Ellis) are publicly traded and as such required to submit annual reports to the SEC. For
these firms, financial information based on audited statements was easy to obtain. For the remainder of firms represented, which
are privately owned, information was either very difficult to find (or if found, could not be corroborated with additional sources), or
financial information was impossible to locate. Some firms have publicly traded parent companies as noted in the report but
information available did not provide data on subsidiary firms that was transparent.
 Industry Analysis – Commercial Real Estate

Firm Name: CB Richard Ellis, HQ: Los Angeles (CA) / Public (CBG; NYSE) [Table]

Executive Summary

Located in the top tier of firms along with Jones Lang LaSalle, Cushman & Wakefield, and Colliers International, CB Richard
Ellis ranked number one on the NREI ranking in both 2009 and 2010. In 2010, the firm generated $128.1 billion in transaction
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volume, representing 1/3 of the total transaction volume generated by all the firms in this report. Firm’s focus is on collaborating
across regions/nations to provide the best possible outcome for clients and a focus on managing the client-firm relationship.

Financial Value Proposition & Growth Plans

Asset Services are provided by brand name Trammell Crow; CB Richard Ellis strategy is Commercial Sales
to provide a complete suite of market leading services to property owners and occupiers
through a fully integrated global business platform and a managed account strategy. CB
Richard Ellis maintained revenues of more than $5 Billion in 2010, and are a publicly traded
firm on NYSE. Revenue represents a return to 2008 levels after dropping by approximately $1
Billion in 2009.

Commission Splits
Multi-Family Office Retail Land Industrial All Other
Unclear, but likely it has gone down during 2009 and 2010 in an attempt to cost cut
Note: Based on Listings as of 5/3/2011
and recoup some of the losses incurred in 2008. Generally the split is 50/50 with 5, 10, or 15
percent tacked on for bonus incentives. It was surmised this commission split has been reduced from 50 to 48 percent in the face of
cost-cutting but could not be confirmed. Drops in commission splits were a trend over the last two years.

Training Programs

Training is facilitated through CBRE University, which may be characterized as comprehensive in-person training and
includes curriculum focused on the following areas: presentation/selling skills, business development, strategic planning, and
recognizing best practices. It should be noted this program is currently on hiatus as CBRE focuses on changes to their educational
operations by emphasizing distance learning and using technology to leverage cost-efficiency.

National Accounts, Solicitations & Partners

National clients include ExxonMobil, Bank of America, Ryder Systems and McKesson Corporation. 5% of the firms revenue
accrued from contracts with government agencies according to the firm’s 10-K submission to SEC.

Conferences & Activities

According to information gathered, the conference in 2009 (or 2010) was cancelled. The conference scheduled for 2011 is
currently slated to take place in Las Vegas (NV) from Oct 3-6, 2011.

Advertising Strategy / Keywords

CB Richard Ellis online presence is clean and generally intuitive for the end-user. Properties can be searched by the user on
the site and does allow for querying capabilities, including property type and sub-type, geographic down to zip code or a radius
extended from an intersection. Users can also opt to receive e-mails alerting them of properties meeting stated criteria. CB Richard
Ellis does not use meta tags, and the overall functionality, usability and content is good particularly when compared to peers.

Key Financial Indicators

CBRE generated revenues of $5.115 billion in 2010 according to their most recent 10-K annual submission. The 52-week
range of their stock price is $12.81-$29.88; and the stock has increased steadily from the low point of $12.81. Total debt/equity ratio
 Industry Analysis – Commercial Real Estate

for the most recent quarter (Q42010) was 1.16; profit margin stands at 3.92% with quarterly revenue growth (year-over-year) of
27.4% and gross profit of $2.16 billion.

Firm Name: Jones Lang Lasalle, HQ: Chicago (IL) / Public (JLL; NYSE) [Table]

Executive Summary

Top tier firm with transaction volume (2010) of $67.2 billion and revenues of $2.9 billion. There is a heavy focus on
sustainability practices and ethical behavior, both in terms of marketing messaging to prospective clients as well as through
educational training material for its agents. JLL did the best among all peer firms profiled in this report with respect to the increase
in activity in 2010, increasing their transaction volume by 43 percent. The largest presence among firms profiled, JLL consists of 750
offices worldwide and 30,000 people. JLL also presents a strong focus on attracting talent to their firm. Growth strategy has been
around acquisitions, as JLL, as it exists now, was formed in 1999 as a merger between JLW and LaSalle Partners.

Financial Value Proposition & Growth Plans

Total transaction value for 2009 was $47 Billion. Jones Lang Lasalle (JLL) places a heavy focus on environmental
sustainability and energy management, a marketing approach being taken by many commercial real estate brokerages. The stated
mission of JLL is to be in business to create and deliver real value for clients, shareholders and our own people in a complex world
that is constantly changing. Based on information from their annual SEC filing, JLL is focused on five main strategic areas: 1) build
leading local and regional service operations; 2) strengthen position in corporate solutions; 3) capture leading share of global capital
flows for investment sales; 4) strengthen LaSalle Investment Management’s leadership position; and 5) strengthen and fully leverage
links between people, service lines, and geographies worldwide.

Commission Splits

No information was found with regard to the level of commission splits.

Training Programs

JLL has employee orientation for new agents as well as what is termed Sustainability University. This training curriculum
appears to be more focused on UK markets, but it provides an online resource focuses on the following topics: economic and
environmental impacts of sustainable portfolios, accreditation in LEED and other green initiatives, as well as general sustainability
and energy efficiency concepts.

National Accounts, Solicitations & Partners

Selected national clients of JLL include JP Morgan, MetLife, and Wells Fargo. Agreements have been executed between
WESCO International and Beaumont Hospitals. The former was the result of WESCO International selecting JLL to provide a range of
real estate services across its 10.5 million-square-foot, 430-building worldwide portfolio. The latter was established to create a new
standard in health care real estate, facilities, and equipment services delivery. JLL also provides services to public sector clients,
which selectively includes Department of the Army, Department of State, and National Institutes of Health.

Conferences & Activities

As a publicly-traded company, JLL does coordinate a shareholder’s meeting on an annual basis; the most recent took place
in May 2010 in New York (NY). The next shareholder’s meeting will take place on May 26, 2011 in New York (NY).

Advertising Strategy / Keywords

Jones Lang Lasalle has one of the better online sites compared to other peers in this report; the site is very clean with very
little clutter on the home page. Easy to use drop down buttons allows user to drill into firm expertise, recent news, highlights, and
worldwide locations. Search functionality is somewhat different from other peer sites, in that the user cannot select more than one
 Industry Analysis – Commercial Real Estate

property type; in other words, there are separate portals for office, retail, industrial, etc. There is also no ability to filter listings once
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a market segment has been selected. Jones Lang LaSalle ranked 3 on the 2011 Lipsey Survey, the same spot they occupied in 2010.

Key Financial Indicators

In 2010, JLL generated revenue totaled $2.9 billion, an 18% increase from 2009. The stock price has been in a range
between $61.83 and $107.84 over the past 12 months, and has been on a steady increase from that low. The firm generated an
EBITDA of $338.62 million, total debt of $226.20 million and a current debt/equity ratio of 0.92. JLL enjoys a profit margin of 5.26%
and a return on equity of 10.22%.

Firm Name: Cushman & Wakefield, HQ: New York (NY) / Private [Table]

Executive Summary

Top tier firm with $66.8 billion in transaction volume in 2010 and a 26 percent increase from 2009 activity. With a strategic
partnership in 2008 with Envirosell as well as work with the Department of Energy, Cushman & Wakefield have grown their bona
fide focus on environmental sustainability and energy efficiency. There is a keen focus on local market intelligence and the value of
research the firm markets to its clients.

Financial Value Proposition & Growth Plans

Commercial Sales
Similar value proposition with regard to the level of research provided by the
company to local areas; mission statement is we are the firm of choice – a real estate advisor
and principal – the global standard for knowledge, service, and execution. Transaction value
(2010) stood at $67 billion for sales and leasing combined, with a net income of $25.7 million.
Cushman & Wakefield had a difficult 2009, with losses topping $127 million.

Commission Splits
Multi-Family Office Retail Land Industrial All Other
Based on most recent information, commission splits are 50/50 with 5, 10, or 15
percent increases based on deal-specific incentives. Note: Based on Listings as of 5/3/2011

Training Programs

No information was found with regard to specific training curriculum or programs.

National Accounts, Solicitations & Partners

Through Cushman & Wakefield’s Location Incentives Group, there are 17 listed national-level clients. This group is also
responsible for investigating incentives for clients looking to relocate or solicit local incentives. Selected national level clients include
General Motors, Hewlett-Packard, Merck, and the Mills Corporation. Cushman & Wakefield has had a relationship with Envirosell
since 2008 as a way to integrate the market intelligence on buying behavior, human traffic flow and operations. The partnership is
touted as a way to help retail operations maximize building value. Government accounts include the Department of Energy and EPA;
Cushman & Wakefield entered into a MOU with each agency aimed at sharing information to address environmental issues in the
commercial real estate sector.

Conferences & Activities

Periodicity of conference events is unclear based on information collected; the very last conference information was found
for an event in New York (Aug 2005) which focused on the global economy, corporate real estate, and corporate social
responsibility. It is unknown where the next conference will be held.

Advertising Strategy / Keywords

 Industry Analysis – Commercial Real Estate

Cushman & Wakefield’s online presence is fairly clean and the site provides a good deal of content. The search function
(powered by Loopnet) allows for filtering to a greater degree than some of the other firms, including the ability to segment by
building class in addition to the usual filters (geography, sale/lease, or price, square feet). Cushman & Wakefield use meta tag
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keywords and the site usability/content is good. In terms of branding, Cushman & Wakefield ranked 4 in the Lipsey Survey (2011), a
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drop of two spots from their 2 place ranking in 2010.

Key Financial Indicators

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Cushman & Wakefield ranked 3 on the NREI transaction value survey, the same position they held based on 2009 activity.
The firm generated $66.8 billion in transaction value during 2010, a 26% increase from their 2009 levels ($53.0 billion). Net income
in 2010 was $25.7 million and an EBITDA of $107.3 million. 2009 was not a particularly successful year as Cushman & Wakefield lost
$127 million, the worst loss among the biggest firms.

Firm Name: Colliers International, HQ: Seattle (WA) / Private [Table]

Executive Summary

Top tier firm; generated $59.6 billion in transaction value during 2010, an increase of 11 percent, the lowest percent change
(2009-2010) among all the firms profiled for which transaction volume data existed in 2009 and 2010. Currently the firm identifies
their strategic growth as expanding into new areas, recently including Baltimore, Kansas City and St. Louis. This strategy also involves
acquisitions of smaller, regional strategic firms (such as Hearn Burkley in the mid-Atlantic region in December 2010). Colliers was
named the top U.S. Real Estate Company in Commercial Property Executive in January 2011. Metrics the magazine employed to
determine the top firm included CEO tenure, staff turnover, company age, and mean revenue.

Financial Value Proposition & Growth Plans

Based on the company website, Colliers, like many real estate commercial firms, attempt to leverage a large company
footprint with local knowledge and market intelligence, as stated through a culture of service excellence and a shared sense of
initiative, we integrate the resources of real estate specialists worldwide to accelerate the success of our partners. As noted above,
Colliers is in a self-described growth mode, seeking out new markets and acquiring regional entities to complement its reach.

Commission Splits

Based on research, it was unclear exactly what the split is; but it is likely somewhere between 55 and 60 percent, with the
exact number changing in some instances due to increased materials based on client need.

Training Programs

Training is provided through Colliers University.

National Accounts, Solicitations & Partners

Key national accounts include 3M, GE, H&R Block, Procter & Gamble, and Coca-Cola.

Conferences & Activities

No information found on conference activities.

Advertising Strategy / Keywords

Overall, Colliers online presence is fair; international statistics regarding Colliers placed prominently on the home page is a
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feature, and in terms of brand recognition (Lipsey Survey), Colliers ranked 2 in 2011 (same as in 2010). There is no use of meta tag
keywords. The search function is not on the home page but is accessible through a secondary level link; the search function, once
 Industry Analysis – Commercial Real Estate

activated, provides all listings and then the user can filter according to their own criteria; variables include sale/lease, property type,
and the ability to drill-down on a geographic level. Individual listing information provides a map, description, and some amenities
but in comparison to other sites, the amount of information is limited.

Key Financial Indicators

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In 2009, Colliers generated $1.9 billion in revenues, and they rank 4 on the NREI rankings with sale/lease transaction value
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of $59.6 billion during 2010, a decline of two spots from 2 in 2009 with $53.8 billion in transaction value. Change from 2009 to
2010 in terms of transaction value was the lowest increase (11%) of any of the commercial firms on the NREI Top 25 list (2010).

Firm Name: NAI Global, HQ: Princeton (NJ) / Private [Table]

Executive Summary

Top of the mid-tier firms (see opening Executive Summary), NAI Global experienced a 29 percent increase in transaction
volume (2009 to 2010). NAI Global stands out in terms of their use of technology to provide services to their clients, referenced by
the use of a comprehensive suite of tools covering end-to-end needs. NAI also markets a program entitled PowerSale™ which is an
aggressive, accelerated marketing platform for sellers. The program features an online sealed bid sale which NAI markets as a way to
avoid the extended sales cycle by marketing around a date-certain event.

Financial Value Proposition & Growth Plans

Commercial Sales
NAI Global provides a suite of software services to their agents which attempts to
incorporate end-to-end services; the suite includes the following (all trademarked): REALTrac
Online (portfolio management), CLAS Online (lease administration), E-Offering (property
marketing), treeSoft (financial analysis), and Site Right (mapping and demographics). On the
company website, the corporate values are prominently displayed as nine pronouncement
focused on the following: client-service focus, integrity, quality and continuous improvement,
collaboration, dynamism, leaders and teammates, global thinking / local approach, embracing
change, and providing a challenging and fulfilling work environment. Multi-Family Office Retail Land Industrial All Other

Note: Based on Listings as of 5/3/2011

Commission Splits

Unclear exactly what the commission split is at NAI Global but the advertising on many individual broker sites is that NAI is
very competitive. In a co-brokerage agreement found here, the split is 50/50.

Training Programs

Training curriculum information is not readily available, but it appears the training is centered primarily on how to use the
suite of software tools as described above. Information on the CLAS program is found here.

National Accounts, Solicitations & Partners

NAI Global provides a client list (undated); some of the clients listed elsewhere include USPS, Miller, and National
Semiconductor. NAI Global has partnered with NRC Realty & Capital Advisors to deploy PowerSale, an online marketplace for listing
commercial properties. With regard to government accounts, it’s not clear what percentage is devoted to government contracts, but
NAI Global does have a business unit developed exclusively around government agencies.

Conferences & Activities

Last held conference was Feb 8-11, 2011 in Las Vegas (NV). No information currently exists for the next conference to take
place in 2012.
 Industry Analysis – Commercial Real Estate

Advertising Strategy / Keywords

NAI Global online presence is fair overall, but the site does have some visual qualities a number of the other commercial
firms do not have; the site is organized in many ways to direct prospects to local offices. Search functions are located one level down
from the home page and they provide similar querying functions to other firms who base their listings on the Loopnet engine. NAI
Global does use meta tag keywords. The home page is laid out in an intuitive fashion, and also provides research links.

Key Financial Indicators

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As a private firm, financial data for NAI Global is difficult to obtain. At any rate, the firm ranked 5 in the NREI transaction
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value listing, with a 2010 transaction value of $45 billion, up from $35 billion in 2009 (ranked 6 ), and representing a 29 percent
increase.

Firm Name: Cassidy Turley, HQ: San Diego (CA) / Private [Table]

Executive Summary

Mid-tier firm; Cassidy/Turley generated $17.0 billion in transaction volume in 2010. Cassidy/Turley, like Jones Lang LaSalle,
attempts to bring a sustainability perspective to the industry and an acute focus on the triple bottom line. With 60 offices, the
volume per office metric ($0.28 billion) is one of the highest among peer firms profiled in this report. Cassidy/Turley is also one of
the firms profiled in this report for which information was difficult to obtain.

Financial Value Proposition & Growth Plans

Commercial Sales
Cassidy Turley achieved a total transaction value of $13 Billion in 2009. The vision of
the company is to be a world-class provider of fully integrated commercial real estate services.
Cassidy Turley (perhaps more so than other firms) focuses on the marketing potential of
sustainability services by explicitly stating their focus on the corporate triple bottom line
(environment, economy, and society) and the impacts of business practices upon each of those
pillars. Cassidy Turley also points to the four pillars behind their value proposition, including
exceptional results, dedication to their communities, growth for their company, and energizing
workplaces for associates. Multi-Family Office Retail Land Industrial All Other

Note: Based on Listings as of 5/3/2011

Commission Splits

No information was found with regard to the level of commission splits.

Training Programs

No information was found with regard to training programs or curriculum for new agents.

National Accounts, Solicitations & Partners

Cassidy Turley’s focus on national accounts is nearly solely focused on the non-profit sector. Selected national clients
include Common Ground, National Foundation for Cancer Research, Police Foundation, and the Brookings Institution. A key
partnership Cassidy Turley entered into in January 2010 with London-based GVA Grimley for the creation of a new international
partnership. As stated in a press release, the memorandum of understanding (MOU) between the two firms contemplates an
international client-led approach to business, common vision and values, a culture of openness and common services for
multinational companies, led internationally but delivered locally. Cassidy & Turley also provide services to some government clients.

Conferences & Activities

No information was found with regard to conference activities.

 Industry Analysis – Commercial Real Estate

Advertising Strategy / Keywords

Cassidy/Turley’s online presence is marked by a clean website which is visually pleasing and attempts to highlight some of
the value propositions this firm brings to its clients, including research (snapshots of current research are displayed on the home
page), news tickers, case studies, and media spotlight. Meta tag keywords are not used, and the search function is somewhat
confusing (search engines are separated by sales/lease, and sales over $8 million), but querying functions are adequate though
somewhat limited. Individual listings are powered by Loopnet, can be filtered and mapped; detail and summary reports available.

Key Financial Indicators

Detailed financial information for Cassidy/Turley is not available, but in terms of transaction value for 2010 activity,
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Cassidy/Turley ranks 10 on the NREI 2010 survey, representing $17.0 billion. This is an increase of $4.0 billion in 2010, and resulted
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in the firm moving up 3 spots from 13 in 2009. The 31% increase over 2009 puts the firm in the near top tier in terms of percentage
growth in transaction value, 2009 to 2010.

Firm Name: Marcus & Millichap, HQ: Encino (CA) / Private [Table]

Executive Summary
Commercial Sales
Mid-tier firm; Marcus & Millichap generated $13.6 billion in transaction volume in
2010, an increase of 42 percent, second only to Jones Lang LaSalle among firms profiled. This
firm generally focuses on the retail side. Training programs are somewhat unique compared to
counterpart firms as new agents are matched with top-producing brokers in a mentoring
situation. Marcus & Millichap also holds a number of other real estate firms.

Financial Value Proposition & Growth Plans

Multi-Family Office Retail Land Industrial All Other

Note: Based on Listings as of 4/18/2011

Total transaction value for Marcus & Millichap in 2009 was $9.6 Billion. The stated
mission of this firm is to help clients create and preserve wealth by providing the best real estate investment sales, financing,
research and advisory services available. The Real Estate Investment Services arm of Marcus & Millichap is the largest of seven firms
within an umbrella portfolio. Marcus & Millichap markets their services to focus on end-to-end services – obtaining the most
accurate and timely market information, creating successful positioning strategies, sourcing funds, monitoring loan process to
ensure a smooth and timely close.

Commission Splits

Based on most accurate information available, agents at Marcus & Millichap are provided 100% of sales.

Training Programs

New agent training is provided to Marcus & Millichap employees. This is an in-person five day workshop which focuses on
orientation material. In addition, new agents are provided a top producing broker in a mentoring relationship.

National Accounts, Solicitations & Partners

Within the Real Estate Investment Services arm, institutional clients include selected names such as Aetna, Bank of
America, GMAC, Sun America and Wells Fargo. Marcus and Millichap do provide services to government clients. Information
regarding key partnerships with other entities was not found.

Conferences & Activities

 Industry Analysis – Commercial Real Estate

The next conference of Marcus & Millichap agents will take place in Las Vegas on May 23, 2011. Information regarding
previous events was not found.

Advertising Strategy / Keywords

Marcus & Millichap online presence is fair, with adequate content provided on the site and a fairly intuitive layout designed
for navigation anywhere on the site. One difference is the fact that users must register on the site to view listings, something not
required at any of the other firm sites. The firm does use meta tag keywords, and search functions are not accessible on the home
page but one level down.

Key Financial Indicators

Detailed financial information is not available on the firm home page or to any large degree elsewhere on the internet. In
terms of total transaction value, Marcus & Millichap generated $13.6 billion in 2010, up from $9.6 billion in 2009, an increase of
42%, one of the higher percentage increases among peer firms.

Firm Name: Grubb & Ellis, HQ: Santa Ana (CA); Public (GBE; NYSE) [Table]

Executive Summary

Last of the mid-tier firms; generated transaction volumes of $12.1 billion in 2010. Of the publicly-traded firms, Grubb & Ellis
stock performance is dismal, currently trading at less than $1 and likely to be delisted. Currently, the firm has retained the services
of a consultant to investigate a potential sale of the firm. Of all the counterpart firms, Grubb & Ellis highlight and market their
research services aggressively.

Financial Value Proposition & Growth Plans

Commercial Sales
Grubb & Ellis is a publicly-traded company on the NYSE (GBE). Total revenue in 2010
was $575 Million. Grubb & Ellis conduct services in a diverse set of segments (Industrial, Land,
Office, and Retail). Value propositions for potential clients are based on leveraging the work of
the research arm at Grubb & Ellis and on the integration of research and forecasting
opportunities for clients. In recent weeks, talk has turned to a potential sale or merger. A
recent listing standards notice from NYSE indicates the average closing stock price over 30
consecutive trading days has fallen below $1 (currently at $0.73). JMP Securities, retained to
discuss company strategy regarding sale or merger, also advised on a recent $18 million Multi-Family Office Retail Land Industrial All Other

infusion from Colony Capital, an investment firm specializing in distressed assets. Note: Based on Listings as of 5/3/2011

Commission Splits

In contrast to a number of other commercial real estate brokerage firms, Grubb & Ellis actually increased their commission
split to 65%. It has been argued here that this has cut into the firm’s profits.

Training Programs

Training programs are conducted through the Grubb & Ellis University, which include coursework related to the kinds of
tasks brokers will be responsible for, including technical, business, computer and presentation skills. There are roughly 120 courses
available to employees and the staff of their affiliates.

National Accounts, Solicitations & Partners

As noted, Grubb & Ellis recently entered into an agreement with JMP Securities for assistance with the firm’s current
financial difficulties and the potential for a merger or sale. In the press release announcing the agreement, the firm stated “we
 Industry Analysis – Commercial Real Estate

believe now is the time to explore opportunities on how best to leverage the broad platform and capabilities of the company into an
improving market…”

Conferences & Activities

Last conference (2011) took place in San Diego from Feb 9-11, 2011 and major items covered included utilizing social
media, leveraging the capabilities of Grubb/Ellis, research practices, and selling best practices.

Advertising Strategy / Keywords

Grubb & Ellis online presence overall provides a clean interface for users that is somewhat intuitive. The search function
(powered by LoopNet as is many of these firms) offers the ability to query and filter listings. There are mapping functions and the
ability for users to generate summary or detailed reports.

Key Financial Indicators

In 2010, the firm generated revenue of $575.5 million, a 9 percent increase from 2009. Leasing activity represented 68% of
the total sales and leasing revenue in 2010, with sales accounting for 32%. As noted above, the stock price for Grubb & Ellis is valued
low and has been over the past year, dropping by 70% over the past 52 weeks (as of 4/23/2011). According to 2010 estimates,
Grubb & Ellis generated revenues of $575.46 million, a profit margin of negative 11.6% and a debt/equity ratio of 0.97.

Firm Name: RE/MAX Commercial, HQ: Denver (CO) / Private [Table]

Executive Summary

First of the lowest tier firms, RE/MAX Commercial generated $5.1 billion in transaction volume in 2010, less than half the
bottom firm within the mid-tier group. Nevertheless, RE/MAX Commercial did not even appear in the transaction volume rankings in
2009 so they’ve moved from beyond the top 25 to number 16 in 2010. Not surprisingly, RE/MAX Commercial is hoping to leverage
the brand recognition of their residential counterparts.

Financial Value Proposition & Growth Plans

Transaction value was not found. Marketing on the website to prospective clients focusing on leveraging RE/MAX branding
and access to information, markets, technology and a team of experts from around the world. An additional differentiator that
RE/MAX focuses on in collateral to prospective clients is the fact that a single point of contact is established and remains constant
rather than changing for each transaction.

Commission Splits

Varies; 90% with desk fees, 70% with no desk fee. Unclear whether there are regional differences.

Training Programs

Training is established through RE/MAX University, which provides for online, on-demand programming including
coursework and a corporate television channel. There are various topics; while the RE/MAX University is directed primarily to
residential agents; it is assumed this resource is available for commercial agents. Training is emphasized at RE/MAX, perhaps
nd
indicated by a recent finding that the commercial wing has the 2 most agents represented with the certified commercial
investment member (CCIM) candidates.

National Accounts, Solicitations & Partners

Key partnerships include LoopNet (as is the case with many of these firms), as well as GreenPoint Partners. RE/MAX
Commercial does include among its clients government agencies.
 Industry Analysis – Commercial Real Estate

Conferences & Activities

RE/MAX Commercial facilitates an annual convention gathering of agents – given the scope of RE/MAX including residential
and commercial agents, this convention is generally focused on residential real estate but is a networking opportunity for both
residential and commercial agents. The most recent conference took place in March (7-10), 2011 and the next conference will take
place in March (5-8), 2012. Both events took place in Las Vegas (NV).

Advertising Strategy / Keywords

RE/MAX Commercial online presence is somewhat buried given the large name recognition held by RE/MAX properties.
While the commercial operations do have their own site, it is not separate from RE/MAX in general or with regard to accessing
residential property information. While RE/MAX Commercial does not appear in the top 25 on the 2011 Lipsey Brand Survey, the
commercial operations are likely not hurt by RE/MAX brand recognition regarding real estate in general. The search functions
(powered by Loopnet) are similar to peer firm functions; overall usability of the site and content is fair.

Key Financial Indicators

Detailed financial information is difficult to obtain; with regard to transaction activity, RE/MAX Commercial generated $5.1
th
billion during 2010 in total transaction volume. This placed them 16 on the NREI survey rankings, a ranking they were not included
in for 2009.

Firm Name: Coldwell Banker Commercial (Subsidiary of Realogy Corporation), HQ: Parsippany (NJ) / Private [Table]

Executive Summary

Generated $5.0 billion in transaction volume in 2010; with 694 offices, Coldwell Banker Commercial generated the lowest
volume per office of $0.01 billion. Current listings suggest a major focus on land sales, followed
by retail. CBC includes one of the more comprehensive agent/broker training programs, which Commercial Sales
provides a diverse mix of topics and effective use of technology.

Financial Value Proposition & Growth Plans

Coldwell Banker Commercial is just one brand under the umbrella of Realogy
Corporation (which in turn is an affiliate of Apollo Management, LP, a private equity and
capital markets investor. Coldwell Banker Commercial attempts to leverage the resources of a
large vertically integrated firm with end-to-end services for clients. Franchise opportunities are
marketed and as of 2010, the retention rate was 95%. The platform used by brokers includes Multi-Family Office Retail Land Industrial All Other

24-hour listings, financial analysis, marketing support, listing exposure, and precise listing Note: Based on Listings as of 4/18/2011

capability.

Commission Splits

Commission splits appear to vary; given CBC’s large national footprint, there is a wealth of resources provided to new
agents in the form of marketing support, public relations, and advertising. Franchising appears to be popular based on the high
retention rate.

Training Programs

As is the case with a number of commercial real estate firms, training is housed based on a university concept, in the case of
CBC, this is developed through Commercial University. Much of the training appears self-paced with online access through Blueprint
(CBC Intranet). Course work is organized under the Emerging Broker Training (EBT) Program and includes: Recruitment Training,
Capital Markets, Distressed Assets, and Introduction to Leasing.
 Industry Analysis – Commercial Real Estate

National Accounts, Solicitations & Partners

CBC has two major alliances – one with LNB Commercial Capital and another with the Institute of Real Estate Management
(IREM). The first (LNB) firm specializes in loan workout advisory services and is used to provide solutions for distressed asset loan
situations. The second (IREM) was announced in Nov 2010, and is an agreement that seeks to expand CPM certification for CBC
personnel as well as identify collaboration opportunities.

Conferences & Activities

Last conference took place in Las Vegas, Mar 10-12, 2011 and featured general topics such as: Real Estate Economics,
Capital Markets, Marketing, and trends in RE Law. Information regarding the 2012 conference is restricted to registered agents.

Advertising Strategy / Keywords

Coldwell Banker Commercial provides search functionality directly on their home landing page. The search function
provides mapping as well as querying capabilities, though these appear limited to price, type (sale/lease), square footage and
property type. Search function usability is fair, though one feature is that the site provides demographic information within a 1, 3,
and 5 mile radius around an individual property. CBC does not use meta tag keywords and is fair with regard to site usability, content
and ease of navigation.

Key Financial Indicators

CBC ranks 17 on the list of top 25 commercial brokerages based on the NREI 2010 survey, with 2010 transaction value of $5
billion. Based on the commercial sales distribution, land sales make up nearly half of all current listings based on sales price. CBC is
also a subsidiary of Realogy Corporation and one of the oldest brokerages among those studied in this report with more than 100
years of history, having formed after the San Francisco earthquake of 1906. In addition to CBC, Realogy also owns ONCOR
International. Realogy is owned by an affiliate of Apollo Management, LP. Realogy generated net revenues of $4 billion in 2010, total
assets of $8 billion and total liabilities of $9 billion, with net equity of ($1.07) billion.

Firm Name: Sperry Van Ness, HQ: Irvine (CA) / Private [Table]

Executive Summary

Generated $4.6 billion in transaction volume in 2010, Sperry Van Ness (SVN) saw volume increase by 28 percent, the
average among those firms profiled here that were in the NREI rankings in 2009 and 2010. SVN markets its services around a well-
organized network of primary, secondary, and tertiary markets. SVN also partners with GreenPoint in marketing energy efficient
properties (along with KW Commercial and RE/MAX). SVN also appears to be focusing its efforts around the use of technology,
particularly leveraging the use of social media in connecting brokers across their network.

Financial Value Proposition & Growth Plans

In 2009, Sperry Van Ness had a total transaction value of $3.6 Billion. Its stated mission is to create and nurture a positive
working environment and perform as a team member with accountability, responsibility, and authority. SVN focuses its value
proposition on the breadth of their primary, secondary and tertiary markets and leveraging these resources across the country to
maximize investment options.

Commission Splits

Based on the most specific information found, agents at Sperry Van Ness receive a 50/50 commission split.

Training Programs
 Industry Analysis – Commercial Real Estate

No information regarding training programs for new agents was found. One interesting aspect which separates SVN from
other firms in this space is the use of agent core covenants, in which new hires pledge to follow SVN principles.

National Accounts, Solicitations & Partners

Specific national account information for SVN was not found, though they do provide services for governmental
organizations. In addition, SVN (among other commercial brokerage firms) has entered into a partnership with GreenPoint in an
effort to provide value for clients seeking to leverage energy efficiency or renewable energy investments. The goal is to provide a full
range of sustainability services to take advantage of clients seeking to either market properties from a “green” standpoint or save in
operational costs. This appears to be a model gaining favor in the realm of energy efficiency where the third party (such as SVN)
takes care of the customer from end-to-end in the completion of energy efficiency projects. This includes audits, renewable energy
procurement, finance, incentives acquisition, and overall energy advisement.

Conferences & Activities

Periodicity of corporate conference events is unknown, but the last conference held took place in Chicago (IL), Sep 23-24,
2010. Key topics included what clients want, leadership in commercial real estate, and economic outlook. The next conference is to
be held in Las Vegas (NV), May 26-27, 2011.

Advertising Strategy / Keywords

One aspect that separates this firm from the others under study in this report is the fact that their home page is focused on
advertising the firm’s use of social media, a trend likely to become more important to firms/clients over the next several years. The
website has a clean feel, and is visually inviting. Users can create accounts but these aren’t required to search listings. The variables
one can modify is somewhat limited, and one difference in contrast to peer sites is that there is no mapping feature available.

Key Financial Indicators

th
Sperry Van Ness achieved an 18 place ranking ($4.6 billion) in the NREI transaction value survey for 2010, up one spot
th
from their 19 place ranking ($3.6 billion) based on transaction activity in 2009. SVN is generally in the third tier of commercial firms,
as 2010 transaction activity of $4.6 billion represents less than 1% of the total transaction value generated by the top 25 firms.

Firm Name: Lee & Associates, HQ: Newport Beach (CA) / Private [Table]

Executive Summary
Commercial Sales
Lee & Associates did not make the top 25 in 2009 as published by NREI, but did
th
appear in 19 position in 2010, generating transaction volume of $4.4 billion. Current listing
analysis points to land and industrial as key segments. Commissions are marketed as
significantly higher than counterpart firms. Low level use of technology among firms profiled.

Financial Value Proposition & Growth Plans

Total transaction value for Lee & Associates in 2010 was $8 Billion. Lee & Associates
Multi-Family Office Retail Land Industrial
markets their value to clients by orienting towards building long-term client relationships and
customer-driven business solutions. The marketing approach to clients explicitly references the Note: Based on Listings as of 4/19/2011
“Lee Advantage” which consists of five pillars making up the value proposition: streamlined personal service, in-depth local market
knowledge, lasting business relationships, stable business environment, and strong national process.

Commission Splits
 Industry Analysis – Commercial Real Estate

Actual split percentages were not found, but in the company’s marketing to prospective employees, it is stated the
commission for Lee & Associates is significantly larger commission then other competing firms. This could not be corroborated by
additional sources online.

Training Programs

No information was found with regard to training programs or curriculum for new agents.

National Accounts, Solicitations & Partners

No information was found with regard to national accounts or partnerships.

Conferences & Activities

No information was found with regard to conference activities.

Advertising Strategy / Keywords

Lee & Associates’ online presence, in comparison to peer firms, is poor. The firm does not use meta tag keywords, the
website is sparse in terms of critical information for prospective clients, the search functionality provides the ability to refine, but
rd th
little information is available for individual properties. Lee & Associates ranked 23 on Lipsey, down from 20 in 2010.

Key Financial Indicators

Detailed financial information is not readily available; in fact, little information is available on this firm in general. With
th
regard to transaction volumes from 2010, Lee & Associates generated $4.4 billion, placing them 19 on the list of top 25 produced
by NREI. Lee & Associates were not ranked in the top 25 in 2009.

Firm Name: Transwestern, HQ: Houston (TX) / Private [Table]

Executive Summary
Commercial Sales
The lowest ranked of those firms that did appear on the NREI rankings for 2010,
Transwestern generated $4.2 billion in transaction volume, representing a 27 percent increase
from 2009, average for profiled firms. Nonetheless, that increase did not translate into
th
movement on the NREI ranking, maintaining its 20 position. Transwestern does consist of a
research arm, Delta Associates which Transwestern markets as a competitive edge for
prospective clients. Based on current listings, Transwestern maintains a fairly diverse portfolio
with no one segment making up more than 30 percent in terms of total dollar value.
Transwestern also focuses on market research. Multi-Family Office Retail Land Industrial

Note: Based on Listings as of 4/19/2011

Financial Value Proposition & Growth Plans

Total transaction value in 2009 for Transwestern was $3.3 Billion. The mission statement of Transwestern is to consistently
deliver unrivaled value to our clients by empowering our people and fostering an entrepreneurial environment. Their vision
statement is to be the #1 real estate value creator in America. Based on their own marketing, the value proposition presented to
clients includes value created through innovation, penetrating market intelligence and legendary service delivered by teams of local
market experts.

Commission Splits

No information was found with regard to the level of commission splits.

Training Programs
 Industry Analysis – Commercial Real Estate

Transwestern’s training programs are housed under what is called the Skills Development Center. This provides for self-
instruction online via a central web portal providing training for areas of management services, tenant advisory services, human
resources, information technology, and accounting. There are over 120 classes for agents and related personnel. Transwestern also
focuses on green technologies and energy efficiency in their marketing efforts.

National Accounts, Solicitations & Partners

Transwestern does have relationships with a number of key accounts, including CIGNA and TIAA-CREF, as well as
government clients. Transwestern did enter into an agreement with Page Properties based in Houston. The agreement announced
the creation of a new joint venture, Transwestern Page Retail Management, LLC. The goal of the venture is to landing institutional
quality retail management projects and expanding retail leasing opportunities in Houston. The partnership seeks to marry
Transwestern’s management services with Page Properties’ retail brokerage expertise. This agreement was reached in November
2010.

Conferences & Activities

According to the best information available, Transwestern coordinates an annual meeting. The last meeting took place in
Washington (DC) on Feb 10, 2011 and whose topics included trends/prospects of regional economy and commercial real estate
markets. These meetings are less comprehensive than an annual national conference as these types of events also take place in
regional centers such as Dallas and Houston. Information was not found with regard to the next scheduled event.

Advertising Strategy / Keywords

Transwestern’s online presence consists of a clean home page with intuitive links to services, property listings, market
research and news. They use meta tag keywords, and the overall usability of the site is fair. The property listing function is confusing,
nd
as the corporate site directs user to local sites, where they then have to initiate the search function again. Transwestern ranked 22
on the Lipsey Brand Recognition Survey in 2011, moving down 4 spots from their position in the 2010 rankings.

Key Financial Indicators

Detailed financial information is not readily available for Transwestern; according to the NREI transaction activity survey for
th
2010, Transwestern ranked 20 with activity generated totaling $4.2 billion, up from $3.3 billion in 2009 (increase of 27%). This puts
Transwestern in the near top tier with regard to growth between 2009 and 2010.
 Industry Analysis – Commercial Real Estate

Firm Name: Keller Williams Commercial (KW Commercial), HQ: Austin (TX) / Private [Table]

Executive Summary

The smallest (in terms of transaction volume) among any of the firms profiled, KW Commercial did not appear in the top 25
NREI rankings in either 2009 or 2010. A newcomer to the commercial real estate industry, KW Commercial, perhaps like RE/MAX, is
attempting to leverage its brand recognition and expertise on the residential side of the market. KW Commercial has also partnered
with GreenPoint and has taken an explicit approach to sustainability and energy efficiency. KW Commercial markets their services as
specifically focused primarily on the retail market segment.

Financial Value Proposition & Growth Plans

Commercial Sales
KW Commercial is the commercial arm of Keller Williams. This division was created in
2008/2009 with the introduction of Buddy Norman who assumed the role of President of KW
Commercial. The division is guided by the Commercial Leadership Council, a group of 25 top
commercial brokers formed to guide the new division. KW Commercial finished 2009 with
more than 900 members in US/Canada, up from 153 in Feb 2009. KW Commercial was
assisted in its initial push by launching through existing Keller Williams International offices of
which there were 700 in 2009. In February 2011, there were 1,200 KW Commercial agents in
680 offices (down from 2009). Multi-Family Office Retail Land Industrial All Other

Note: Based on Listings as of 5/3/2011

Commission Splits

Newly hired agents can keep 100% of their commissions, without providing any cut or fees to KW Commercial. One value
proposition for agents is that KW Commercial provides an environment in which entrepreneurial agents can thrive. There are two
tiers to agent levels – associate and director. Dues for associate level (as of launch planning) are $900/yr and director, $1,500/yr.

Training Programs

Commercial training consists of online interactive and self-study courses, of which there are four levels: Introductory and
then three hierarchical curriculum tracks. 100 level courses focus on fundamental concepts, while the 200 and 300 levels delve into
more advanced topics such as (though not limited to): Investment Real Estate Analysis; Property Issues (zoning, ADA); Creating
Marketing Packages (200); 300 level courses include Financing & Taxes; Architectural Planning & Construction Costs; and Creative
Deal-Making. Of the other firms profiled, KW Commercial administers a very structured curriculum.

National Accounts, Solicitations & Partners

KW Commercial made recent partnership deals with two key firms: LoopNet (listing portal) and GreenPoint Partners
(environmental real estate consultancy). These partnerships – according to the company – provide greater visibility for agent listings
as well as moving KW Commercial into the environmental sustainability space. The partnership with GreenPoint Partners provides
access to training, resources and sustainability consultants to pursue green building initiatives. The partnership with LoopNet
appears to end a prior relationship with Catylist.

Conferences & Activities

Keller Williams produces a conference on an annual basis entitled Family Reunion; it is not specific to commercial real
estate brokerage but KW Commercial personnel do attend. Last held was in Anaheim, CA (Feb 19-23, 2011) and the next will be held
in Orlando, FL (Feb 11-15, 2012). Much of the conference is devoted to business meetings with various stakeholder groups (such as
International Associate Leadership Council) or other activities. Breakout sessions provide a full distribution of topics to conference
attendees (found here). Key full attendee topics focused on the use of technology and how it can be leveraged in real estate.

Advertising Strategy / Keywords

 Industry Analysis – Commercial Real Estate

KW Commercial online presence is built around providing direct access to property and/or agent listings. KW uses multiple
meta tags (keywords) to optimize reach. Aside from Coldwell Banker Commercial, they are the only commercial real estate
brokerage among those studied in this report to provide instant search capabilities directly on the home landing page (all others
provide a second level link to search forms). Property search allows for advanced querying capabilities, including targeted
geographies, including mapping function.

Key Financial Indicators

Information on financial indicators for KW Commercial was not found, nor did the firm make the list of top 25 commercial
real estate brokerage firms as determined by the most recent National Real Estate Investors survey. KW Commercial is a relatively
new endeavor which appears to be basing growth on leveraging the brand and existing network of residential services of the parent
company Keller-Williams.