This market report data is based on industrial and flex (R & D) buildings that are 5,000 square feet and greater, and multi-tenant office buildings that are 30,000 square feet and greater located in the Southern California and Phoenix, Arizona markets. The office markets of Ventura County, Inland Empire and Phoenix, Arizona include office buildings that are 10,000 square feet and greater.

Direct Vacant SF: Space that is vacant and ready for immediate occupancy by a user. The space is being offered for lease or sale directly from the landlord.

Total Vacant with Sublet SF: Total vacant space that is ready for immediate occupancy by a user. The space is being offered for lease or sale by the landlord or for sublease by the current tenant.

Direct Vacancy Rate: Total vacant direct space (vacant space for lease or sale from the landlord or owner) divided by the total rentable square footage for existing buildings only.

Vacancy w/ Sublet Rate: Total vacant direct space and sublease space divided by the total rentable square footage for existing buildings only.

Gross Absorption: Absorption is a measure of space leased or sold to a user for occupancy over a period of time with no consideration for space vacated in the same area during the same period. Investment sales are not included.

Net Absorption: Net Absorption is the change in total occupied square footage of an area over a given period of time, usually based on financial quarters or annually.

Under Construction: Planned buildings for which construction has started but have not yet been granted a Certificate of Occupancy. Planned buildings are not included.

Completed in 2007: New buildings with original construction completed in the year 2007, and granted a Certificate of Occupancy. Renovated buildings are not included.

The information contained in this report has been obtained from sources deemed reliable and has incorporated third-party data which has not been independently verified by DAUM. While we do not doubt its accuracy, DAUM makes no guarantee or warranty as to its completeness or accuracy. Due to the dynamic (constantly changing) database which DAUM uses to compile and analyze markets contained in this report, previously published statistics may vary from the data published in this report. Statistics and data have been revised to reflect changes in the following categories: existing buildings being verified and added to the database, new or revised occupancy information gathered, new construction being added to the inventory, building demolitions and renovations, as well as other factors that would necessitate revisions to the data and the properties surveyed. This methodology allows us the ability to present the most current and up-to-date information, trend analysis and comparative statistics for this report.