A MONTHLY METER OF INDUSTRY TRENDS

A CRUDE ROLLER-COASTER RIDE (AVERAGE MONTHLY PRICE PER BARREL)*

Crude oil prices have a direct bearing on the U.S. economy. Sharply rising gasoline prices, for example, act as a tax on consumers, slow consumer spending and weaken equity markets. In the second and third quarters of 2004, oil prices rose 40% on strong global demand and fear of supply interruptions caused by war and terrorism, according to Rosen Consulting Group. As of Dec. 16, the average monthly price was $42.93 per barrel.

*Prices refer to the domestic spot price per barrel of West Texas Intermediate-Cushing, a type of crude oil

FOREIGN INVESTORS GRAVITATE TO OFFICE BUILDINGS

The U.S. office market is the preferred property type among foreign real estate buyers. Nearly 75% of acquisitions by foreign investors during the first three quarters of 2004 were in the office sector, with retail finishing a distant second. What's more, about half of all money flowing into the office sector (49%) went into Manhattan buildings, according to Real Capital Analytics, which tracks deals $5 million and higher.

MULTIFAMILY REITS: A THANKFUL NOVEMBER

Both the SNL Multifamily REIT and Equity REIT indexes broke new territory mid-way through November 2004 with year-to-date price increases of 22.5% and 21.4% respectively. Despite backing away from the yearly highs, both indexes finished the month in positive territory, with the multifamily sector maintaining its slight edge by one-half of 1 percent.

HOT HAND IN VEGAS: JOB GROWTH

Nevada has become the land of opportunity. The state's unemployment rate fell to 3.4% in October 2004, well below the national average of 5.5%. In the Las Vegas metro area, construction jobs rose 11% during the 12- month period ending in October. New hotels and single-family homes accounted for the bulk of construction activity, reports The Center for Business and Economic Research at the University of Nevada, Las Vegas.