January 11, 2011

When we last wrote to you in January 2010, we happily announced a record 2009 leasing year for Malkin Holdings' W&H Properties and Malkin Properties. Now in January 2011 we are absolutely delighted to thank the brokerage community as we announce that 2010's total number of leasing transactions and square feet leased surpassed 2009's numbers. Thanks to an outstanding level of participation from tenant rep brokers, we signed new, expansion and renewal leases for 1.4 million square feet of portfolio space amongst 382 tenants, and paid over $14.3 million of commissions, 100% on lease signing!

We have entered into transactions with some of the best credit, quality tenants in the New York Metropolitan Area, brought to us by top-notch brokers. As always, our tenants enjoy Trophy assets in outstanding locations with security and peace of mind in knowing that our disciplined approach to real estate ownership and operation allows us always to meet our financial and performance obligations and provide the highest level of services and the broadest range of amenities throughout the entire term of their leases. We deliver on our commitment to provide the highest level of broker service and satisfaction in the industry, including payment to brokers of 100% commissions on signing, with the opportunity for direct wire-transfer of funds.

We are very excited by the growing market awareness of our groundbreaking energy efficiency retrofit program at the Empire State Building. First class tenants of all sizes have discovered ESB for the first time, and are learning about our measurable, quantifiable cost savings benefits. In fact, the first lease of 2011 at ESB, a long term lease for nearly 500,000 square feet, was made possible in no small part because of what we can offer tenants in this regard.

For 2011 and the future beyond, ESB brings to the market new, 100,000-400,000-square-foot blocks of space. We offer more top corporations pathways to lease well located, reasonably priced offices in our Pre-War Trophy flagship with state-of-the-art technology and top execution. Not only can we help solve their space needs, we can also help them meet their carbon footprint reduction objectives. (For more information about the progress of the retrofit at ESB, please visit www.esbnycleasing.com/advertisements.phtml)

Moreover, the replicable, cost-justified model established at ESB is now being implemented throughout the Malkin Holdings portfolios. We provide tenants a clear set of implementable solutions - from lighting and HVAC to layout - based on proven results for the design and construction of an energy efficient space... generating long-term savings without any sacrifice in comfort and quality. All W&H and Malkin Properties' tenants benefit from our full suite of "green" practices, from tenant and construction waste recycling to "green" cleaning and pest control solutions, which provide a healthier, safer, more productive and clean working environment.

Our top quality office and retail spaces, from Midtown Manhattan to our Fairfield and Westchester County offerings - including all sizes of space from industry leading pre-builts, to multi-floor spaces ready for tenant build out, are ready to accommodate your clients' needs, so please stop by anytime - no appointment is necessary. As always, our standardized leasing process at each and every one of our buildings simplifies the process for you and the clients you represent. Thank you for the opportunity to compete for your business.

Onward and upward.