$900 Billion Invested in Global Real Estate during 2006

Global Commercial Real Estate Investment Rose 38% in 2006 to $682 Billion;
U.S. Total Transaction Volume Rose 32% to $271 Billion in 2006
Jones Lang LaSalle Issues 'Global Real Estate Capital' Report
CHICAGO, March 12 /PRNewswire-FirstCall/ -- Jones Lang LaSalle's latest
global real estate capital report, released today, records global real
estate investment of US$682 billion in 2006, a surge of 38% over 2005, and
nearly double 2003 volumes. Globalization of the asset class continued
relentlessly as 42% of investment value now involves a cross-border
transaction (i) (up from 34% in 2005), and 29% were inter-regional (up from
23% in 2005) (ii).

Already a new annual record for the asset class,
investors posted an additional $218 billion to the total transaction volume
with residential and entity-level deals accounted, bringing the total
aggregate global real estate investment volume to $900 billion -- the
strongest ever performance by global real estate markets.

Tony Horrell, CEO of Jones Lang LaSalle's International Capital Group,
commented: "There is currently a large overhang of investment targeting the
sector with $4 of money chasing every $1 of product. Global real estate
markets performed very strongly throughout 2006, and it was the first year
that all major developed and emerging market returns were both aligned and
positive. Investment was driven by increased allocations to the asset
class, growth in investible for investment and by the increased attention
of opportunistic private equity players who identified relative value in
the sector. These increased flows into real estate gave rise to two notable
phenomena in 2006 -- an increasing number of 'mega-deals' and continued
globalization of the asset class."

The United States accounted for 40% of global transactions by value and
the UK accounted for 15%. The German and Japanese markets have almost
doubled their share of global volumes to 9% and 8% respectively, and the
German market now attracts the same share of global cross-border investment
as the U.K.

United States: A Domestic View

Total transactions in the United States were US$271 billion, up 32% on
2005 levels. Manhattan, by far the largest market in the United States (14%
of national market), experienced strong transaction growth with investment
increasing by 61%.

The volume of cross-border border transactions in the United States
more than doubled to $65 billion, and accounted for 24% of total U.S.
transaction volume (up from 14% in 2005). However, a significant portion of
this activity was sell-side transactions completed principally by German
and Global funds (defined as funds originating from multi-regions) as the
Germans freed up liquidity by selling significant U.S. holdings. Manhattan
captured a disproportionate share of cross-border investment -- accounting
for 21% of total cross-border investment into the United States -- spurred
by the sub-six percent vacancy rate in Midtown, tightening conditions in
downtown and additional demand for space extending into New Jersey as
tenants compete for a finite amount of availability.

The United States remained the largest investment destination of cross-
border transactions with 23 percent of the total global real estate
transactions by value, followed by the United Kingdom (18%), Germany (18%)
and France (8%). In the United States, global sources of capital easily
accounted for the most cross-border purchases in 2006, with $17.2 billion
(43% of cross- border purchases), followed by Canada with $4.6 billion
(11.7%), the U.A.E at $4.3 billion (10.8%), Germany at $2.8 billion (7.0%)
and Australia with $2.7 billion (6.8%). On the cross-border sell-side,
German investors and global sources of capital tied for most active in
2006, each selling $11.1 billion (31% each of cross-border sales) of U.S.
properties. Following were Canada with $3.1 billion (8.7%), Japan at $2.4
billion (6.8%) and Australia at $1.4 billion (4.1%). On a net-investment
basis, global sources led by buying $6.1 billion more in U.S. properties
than they sold in 2006, followed by the U.A.E. with net investment of $3.8
billion, Hong Kong investors at $2.2 billion, Canada investors at $1.5
billion and Australian investors at $1.3 billion. Total cross-border
purchases in the United States rose 86% to US$39.6 billion, up from $21.3
billion in 2005.

"Given the liquid and transparent real estate market in the United
States, we continue to see record-setting capital inflows from overseas
investors into high-quality product in high performing markets such as New
York," said Steve Collins, Managing Director of Jones Lang LaSalle's
International Capital Group. "With the favorable exchange rates for foreign
investors, we expect U.S. properties throughout the major markets, and
specifically in Manhattan, D.C., Boston, Los Angeles and Chicago, to
attract strong international investor interest in 2007 with little end in
sight."

U.S. Market Highlights

Cross-border investment increased in nine of the nation's top 10
markets by volume in 2006, except in Los Angeles where economic recovery
concerns linger. Manhattan experienced the largest yearly gains with total
investment of $37.3 billion and, of that, cross-border investments more
than tripled to $14.8 billion. Total investment was also up strongly in
Boston (81%) with cross-border surging more than five-fold to $4.9 billion;
in Atlanta (31%) with cross-border transactions nearly tripling to $1.9
billion; in Chicago total volume increased (30%) to $16.2 billion while
cross-border activity doubled to reach $3.8 billion; and in Dallas (20%)
with cross-border transactions more than doubling to $1.8 billion.

Report highlights:

-- North and South America: Direct commercial real estate investment in
the Americas reached US$283 billion in 2006, up 31 percent on 2005.
Cross-border investment represented 25 percent of total investment (up
from 16% in 2005) and inter-regional investment reached 22 percent of
total investment (15% in 2005). Investment markets in the Americas
region are overwhelmingly located in the United States (96% of the
region's transactions by value). Other investment markets include
Canada and the rapidly growing cross-border markets of Latin America -
dominated by Mexico and Brazil.

-- Private Equity Fueling the Market: private equity investors have
rapidly accumulated portfolios by pursuing entity-level deals. This
phenomenon, particularly prevalent in the United States, saw the
privatization of REITs and other listed real estate owners valued at
over US$48 billion in 2006. In February 2007, Blackstone purchased
Equity Office Properties Trust, the world's largest REIT, for US$39
billion highlighting both a potential arbitrage between public and
private markets and opportunistic investors' enormous appetite for
real estate assets.

-- Cross-Border Investor Mix: The mix of cross border investors in the
Americas changed significantly in 2006, with Australian, German and
Hong Kong investors dramatically reducing their purchasing activity.
Major cross-border purchasers in 2006 included Global funds (US$18
billion), Canadian funds (US$5 billion), and Middle Eastern funds
(US$5 billion). German funds sold real estate valued at US$11
billion, principally located in New York, Boston and Chicago and
purchased assets valued at US$3 billion (Chicago and Philadelphia).
Australian funds, having dominated the United States cross-border
market in 2005, reduced their purchase activity to US$3 billion
(predominantly retail) and shifted their attention to Europe.

Looking ahead, Steve Collins concluded: "Total transaction and cross-
border volumes continue to rise globally, and real estate continues to
produce a stable return that is paying off for investors across the globe.
We expect 2007 to be at or near the record volumes of 2006. With the
weakened dollar, we also expect an increased level of cross-border
investment into the United States, and the probable return of German
buy-side investing."

Collins also noted that investment vehicles have opened up in the
United States that should impact growth in global transaction volumes. "The
emergence of the Collateralized Debt Offerings (CDO) market provides
investors -- specifically highly leveraged Opportunity Funds -- the
opportunity to place additional, cheaper, non-taxable debt on an investment
without encumbering the other financing positions. This will allow buyers
to increase returns because they can now push underwriting values to higher
levels due to this inexpensive new debt in the marketplace."

About Jones Lang LaSalle

Jones Lang LaSalle (NYSE: JLL), the only real estate money management
and services firm named to FORTUNE magazine's "100 Best Companies to Work
For" and Forbes magazine's "400 Best Big Companies," has approximately 150
offices worldwide and operates in more than 450 cities in over 50
countries. With 2006 revenue of over $2.0 billion, the company provides
comprehensive integrated real estate and investment management expertise on
a local, regional and global level to owner, occupier and investor clients.
Jones Lang LaSalle is an industry leader in property and corporate facility
management services, with a portfolio of more than 1.0 billion square feet
worldwide. LaSalle Investment Management, the company's investment
management business, is one of the world's largest and most diverse real
estate money management firms, with approximately $40.6 billion of assets
under management. For further information, please visit our Web site

http://www.joneslanglasalle.com/ .

(i) Cross border investment is where purchaser, vendor or both originate
from outside the country where the asset is located.

(ii) Cross border investment is classified as 'intra-regional' investment
(both purchaser and vendor originate from the region where the asset
is located) and 'inter-regional' investment (purchaser, vendor or
both originate from outside the region where the asset is located).

Methodology:

Previously reported transaction volumes were revised in
2006 to exclude the investment grade residential sector. The report
now focuses on the commercial real estate sectors popular with inter-
regional investors, and excludes multi-family residential real
estate.

Annual figures, like-for-like comparison:

Total Cross-Border

2003 $354 billion $90 billion
2004 $393 billion (+11%) $114 billion (+26%)
2005 $475 billion (+21%) $164 billion (+43%)
2006 $682 billion (+38%) $288 billion (+73%)