TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 MARKET OVERVIEW PALM BEACH COUNTY & TREASURE COAST

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 POPULATION GROWTH Source: US Bureau of Census Florida12,93715,9822.1% Palm Beach % Martin % St. Lucie % Indian River % Annual Growth

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 POPULATION GROWTH Source: Fishkind & Associates

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 POPULATION GROWTH Source: Fishkind & Associates

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 EMPLOYMENT GROWTH Source: Fishkind & Associates

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 CHANGE IN EMPLOYMENT Source: Fishkind & Associates

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 Source: American Metro Study Palm Beach County Annual Job Growth

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 Source: Fishkind & Associates TRENDS IN OVERNIGHT VISITATION Hotel Occupancies mid / lower 60s % Bed tax revenues 2002 YTD off 10 percent over 2001 same YTD

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 INDUSTRIAL SPACE MARKET Net Rentable: 42.8 Million Sq. Ft. Vacancy Rate: 5.0 Percent Annual Absorption: 103,477 Sq. Ft. Under Construction: 294,394 Sq. Ft. Average Lease Rate (NNN): $5.89 per Sq. Ft. Source: CB Richard Ellis 2 nd Quarter 2002

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 OFFICE SPACE MARKET Net Rentable: 22.7 Million Sq. Ft. Vacancy Rate: 16.4 Percent Annual Absorption: (405,687) Sq. Ft. Under Construction: 0 Sq. Ft. Average Lease Rate (NNN): $16.10 per Sq. Ft. Source: CB Richard Ellis 2 nd Quarter 2002

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 RETAIL SPACE MARKET Gross Leasable: 31.0 Million Sq. Ft. Vacancy Rate: 7.1 Percent Under Construction: 835,932 Sq. Ft. Average Lease Rate: $14.79 per Sq. Ft. Source: CB Richard Ellis 2 nd Quarter 2002

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 Source: American Metro Study Palm Beach County Housing Activity By Quarter Three Year Trend Analysis

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 Source: American Metro Study Treasure Coast Housing Activity By Quarter Three Year Trend Analysis

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 Source: American Metro Study Palm Beach County Housing Inventory by Quarter Three Year Trend Analysis

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 Source: American Metro Study Treasure Coast Housing Inventory by Quarter Three Year Trend Analysis

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 Source: American Metro Study Palm Beach County Housing Starts By Quarter Versus Annual Job Growth Three Year Trend Analysis

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 Source: Fishkind and Associates INTEREST RATES

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 FACTORS INFLUENCING RESIDENTIAL REAL ESTATE Low interest rates Move-up market Retirement Market Other Inmigration Stock Market

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 SELECTED MASTER PLANNED COMMUNITIES A B C D E F

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 SELECTED MASTER PLANNED COMMUNITIES Most Active (Starts) in Planned Subdivisions Valencia Falls (420); Venitian Isles (356), Madison Green (351) Bellagio (323), Verona Lakes (292), Baywinds (258) Nautical Isles (258 ) A: Central / West Palm Beach County Upwards of 8,000 platted but undeveloped lots in this region Middle to upper middle income product

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 SELECTED MASTER PLANNED COMMUNITIES Convention Center to Open Fall 2003 Bookings affected by lack of onsite hotel Additional Retail, Office and Residential Condominiums are planned Hotel Rooms Planned (800) B: City Place – West Palm Center

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 SELECTED MASTER PLANNED COMMUNITIES C: Palm Beach Gardens / Jupiter Ibis: 1900 Acres; 3 golf golf; Started in 1990; 1000 units remaining Mirasol: 2300 Acres; 1163 units planned; Price Range $300 k to $3 Million Sold 200 to date; absorbed 121 last 12 months. Art Hills and Tom Fazio Golf Courses; Golf Digest Learning Center Evergrene (WCI) 905 units; $175 to 700K; 36 acre lake; Pre-sales Frenchman’s Reserve 530 units; $600 to $2 million; Palmer Golf Course Old Palm Golf Club (WCI) 312 units $1 million plus; Floyd Golf Course Ritz Carlton Club 133 units; Nicklaus Golf; Fractions $250,000 plus Abacoa: 6280 units; 1525 sold; 300 annual absorption; $200 k to $700 K FAU, Cardinals Stadium, Residential over Commercial Center Paseos: 207 acres; 327 SF units 311 MF units; Town Greens; Bike Trails

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 SELECTED MASTER PLANNED COMMUNITIES D: Martin County Stand-alone Upscale Private Golf: Mac Arthur (Hobe Sound): 130 sold $175,000 Initiation Deposit Dye Preserve (North of West Jupiter): 71 pre-sold $75,000 Initiation Deposit Ballyhoo (West of Stuart) 100 pre-sold $60,000 Initiation Deposit Residential: Hammock Creek in Palm City Active (132 units started last 12 months) Golf semi-private – Nicklaus design Anti-growth Politics – Developers generally avoiding Martin County

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 SELECTED MASTER PLANNED COMMUNITIES E: St. Lucie County St. Lucie West 20 % of 9500 Dus St. Lucie (217 units started last 12 months) PGA Village 4100 units 25 % built out PGA Village (183 units started last 12 months) The Reserve (80) Partnership with PGA of America; 3 golf courses; to add three more; state of the art learning center Westchester – several 1000 units Joint planning with PGA Village To include residential, office and commercial Within six years a regional mall

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 SELECTED MASTER PLANNED COMMUNITIES F: Indian River County Selected Residential Grand Harbor 2553 units approved and 1223 completed 45 holes of golf 144 slip marina; Orchid Island (32 active starts last 12 months) Indian River Golf Club (30 active starts last 12 months) Private Upscale Stand-alone golf Quail Valley ($ 120,000 initiation fee) Red Stick ($120,000 plus initiation fee)

TREASURE COAST MARKET OVERVIEWOCTOBER 15, 2002 CONCLUSIONS Geography Great! Seeing high quality planned communities Sales remain outstanding in weak economy supported by low interest rates, intrastate migration (from Broward, Dade & PB) and interstate-migration Development opportunities most prevalent north of Martin County Treasure Coast offers a large variety of Recreational Opportunities Quality of Life Is the Major Attraction – Must be preserved through investment in infrastructure, schools, etc.