It is believed that office markets nationally and in the Mid-Atlantic region are recovering from a period of low demand and oversupply. National employment growth fell significantly beginning in 2001. This decrease in growth, combined with increases in productivity, technological improvements, reductions in employee workspaces and business failures, softened demand for commercial office space.

The metropolitan Washington, D.C. area is the nation’s 2nd largest office market with 250.5 million square feet of office space in 1,975 properties. The metropolitan Washington, D.C. area encompasses three regions often referred to as the District of Columbia, northern Virginia and suburban Maryland. While the national economic downturn beginning in 2001 affected the metropolitan Washington, D.C. area, the region outperformed other markets by experiencing stronger average demand growth that translated into a vacancy rate that remained consistently below the national average.

The greater metropolitan Philadelphia area is the 10th largest office market in the United States with approximately 100.5 million square feet of rentable office space in 1,285 properties. In 2004, the metropolitan Philadelphia area registered absorption of 2.7 million square feet, more than offsetting 1.3 million square feet of new rentable office space added to the market during that year. This demand growth represents a significant shift in momentum after three years of negative absorption that totaled 1.9 million square feet, including 181,000 square feet of negative absorption in 2003.

The Wilmington metropolitan area is the 91st most populous in the nation with approximately 617,000 people. Wilmington has relatively high concentrations of financial and other professional service jobs. Its per capita income of $34,999 is 13.2% above the national average. Torto Wheaton Research is forecasting continued employment growth, namely growth in the number of employees in industries reasonably expected to use commercial office space, in Wilmington in these industries over the next several years.

Washington Business Park, built between 1979 and 1987, is a nine-building office park totaling approximately 567,800 rentable square feet. Washington Business Park contains two, three-story office buildings totaling approximately 104,100 rentable square feet and seven, single-story flex buildings totaling approximately 463,700 rentable square feet. Fort Hill Centre, built in 1987, is a four-story office building totaling approximately 66,500 rentable square feet located on the southwest corner of U.S. Routes 28 and 29 in Centreville, Virginia, a major thoroughfare in Fairfax County, Virginia. Sudley North (Buildings A, B, C, D and Bank Building), built in 1987, is a five-building office park totaling approximately 188,500 rentable square feet.

Wynwood, built in 1991, consists of two, two-story office buildings totaling approximately 88,200 rentable square feet. The property is located on Parkstone Drive approximately 1.5 miles southwest of Route 28 and approximately three miles from Interstate 66 in Chantilly, Virginia. Fort Washington Executive Center, built in 1987, consists of three, three-story office buildings totaling approximately 393,000 rentable square feet. The three office buildings, 600, 601 and 602 Office Center Drive, have approximately 119,800, 136,600 and 136,700 rentable square feet, respectively. 200 and 220 West Germantown Pike, a portion of which was built circa 1950, was substantially rebuilt in 2001. The property consists of two office buildings totaling approximately 115,000 rentable square feet. 200 West Germantown Pike is a one-story building totaling approximately 16,700 rentable square feet.

102 Pickering Way, built in 1980 and substantially renovated in 2000, consists of a five-story office building totaling approximately 79,800 rentable square feet, 102 Pickering Way is located off of Route 100 approximately 1.5 miles from the Downingtown interchange of the Pennsylvania Turnpike in Exton, Pennsylvania. Cross Keys, built in 1974 and substantially renovated in 2003, consists of a four-story office building totaling approximately 81,800 rentable square feet. 919 Market Street, built in 1967 and most recently renovated between 2001 and 2004, is an 18-story high-rise office building totaling approximately 224,500 rentable square feet. 919 Market Street is located at the intersection of 10th and Market Streets approximately two miles from Interstate 95 in Wilmington, Delaware. At December 31, 2004 the property was approximately 89.9% occupied and had an average base rent of approximately $22.45 per square foot. Blue Bell Plaza consists of two office buildings (516 and 518 Township Line Road) totaling approximately 154,900 rentable square feet. The property is located on Township Line Road.