Los Angeles County Retail Market Activity Sale Price Trends for 2013

* Contrary to popular belief, it appears Straight Investors of Leased Investment Properties - Very Likely attributed to: A) Motivated 1031 Upleg Tax Deferred Exchange Purchase Requirements & 2) Foreign Buyers pulling cash out from overseas due to currency instability - Not Full or Partial Owner Users for Los Angeles County Retail have been the Majority Driving Force behind Substantial Increases in Sale Pricing from 2012 to 2013. Much Lower Average Capitalization Rates had an apx. +14% or +$54/SF Effect on Values - A 74% Component of Overall Average Sale Price Upward Movement of +19% or +$53/SF.

Trends Observed in 2013, apx.:

1) Increased number of Chinese & Asian, All Cash Investor Buyers 2) Guesstimate 20% to 30% of All Sales were Off Market Deals Not Formally Listed For Sale 3) Price Premiums: Commercial +20% to +30% for Full Owner Users vs +10% to +15% for Partial Owner User/Investor Type Buyers & Industrial +30% to +40% for Full Owner Users of Industrial Product.

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