The Real Estate Roundtable

Board of Directors
Chairman Robert J.Lowe Chairman and CEO Lowe Enterprises, Inc. President and COO Jeffrey D. DeBoer Secretary Daniel M. Neidich Senior Director Goldman, Sachs & Co.

July 2, 2004

Treasurer
Penny Pritzker President Pribker Realty Group, L.P. Robert M. Couch, CMS President and CEO New South Federal Savings Bank Chairman, Mortgage Bankers Association Stephen A. Crosby President CSX Real Property, Inc.

The Honorable Thomas H. Kean Chairman The National Commission on Terrorist Attacks Upon the United States Washington, DC 20407 The Honorable Tom Ridge Secretary United States Department of Homeland Security Washington, D.C. 20528 Dear Governor Kean and Secretary Ridge: The Real Estate Roundtable stands ready to assist you in any way as the The National Commission on Terrorist Attacks Upon the United States finalizes its report and begins to communicate its important findings to policymakers and the public. This letter serves to summarize real estate industry actions with regard to emergency preparedness including steps our organization will take in the next few days to further enhance our industry's response to the threat of terrorism. Since 9/11, like all Americans and businesses, we in the real estate industry generally and at The Real Estate Roundtable (www.rer.org) specifically, have significantly altered many business practices, and we have had to confront a series of new challenges. In order to increase our ability to make sound judgments in this area, our industry has set up a national industry-wide information sharing entity called the Real Estate ISAC (www.reisac.org). The ISAC is designed to quickly communicate terrorism threat information received from the Department of Homeland Security (DHS) to thousands of commercial real estate building owners and operators nationwide while at the same time reporting observed suspicious incidents back to the Department. One notable ISAC initiative has been a series of specific threat briefings by senior intelligence analysts at the FBI and DHS for senior executives and building managers in the real estate industry. We also have organized terrorism simulation exercises for our industry to ensure they better understand their roles in the event of major emergencies. In addition, to facilitate new research on the economic threat and consequences from terrorism, we have organized significant financial support to energize new research through the RAND Center for Terrorism Risk Management (http://www.rand.org/multi/ctrmp/). We also have been actively engaged on a variety of public policy matters growing out of 9/11. Most specifically, we continue to work in support of a federal terrorism insurance program to help ensure economic stability in the face of terrorism in America.

Chairman, National Association of Industrial and Office Properties
John C. Cushman, III Chairman Cushman SWakefieid, Inc. Steven W. Ford Senior Managing Director Cushman &Wakefield, Inc. Chairman and CEO, Building Owners and Managers Association, International Joseph W.Luik Senior Managing Director TIAA James E. Maurin Chairman Stirling Properties

Chairman, International Council
of Shopping Centers Walter!. McDonald President National Association of Realtors Hamid R. Moghadam Chairman and CEO AMB Property Corporation Chairman, National Association of P,eal Estate Investment Trusts Christopher Nassetta President and CEO Host Marriott QuintinE. Primo, III Co-Chairman Capri Capital Nelson C. Rising Chairman and CEO Catellus Development Corporation Immediate Past Chairman The Real Estate Roundtable Douglas W. Shorenstein Chairman and CEO Shorenstein Company, LLC Jerry I. Speyer President and CEO Tishman Speyer Properties Robert S.Taubman President and CEO Taubman Centers, Inc. Richard S. Ziman Chairman and CEO Arden Realty, Inc.

1420 New York Avenue, N.W. • Suite 1100 • Washington, DC 20005 • Phone: 202-639-8400 • Fax: 202-639-8442 • www.rer.org

July 2, 2004 Page 2

These positive actions by our collective industry are buttressed by significant private actions being taken across the country by owners and operators of office buildings, shopping centers, apartment houses and hotels to help make buildings safer for tenants and guests. Many specific actions have been shared with DHS and Commission staff. Moreover, individual real estate industry trade associations have provided members with manuals and guidance on emergency response procedures and organized anti-terrorism awareness training sessions for building tenants and workers (e.g., ICSC (www.icsc.org), BOMA (www.boma.org) and AHLA (www.ahla.com). Industry trade associations also have participated in national simulation exercises overseen by the DHS. In addition, through the Real Estate ISAC, trade associations are assisting the DHS to develop "sector-specific" plans - preparedness & response - for real estate as part of DHS' planning for the "commercial facilities" sector. In all cases, our industry's actions have been predicated on risk assessments that help distinguish between iconic buildings with high-risk locations or tenants and those buildings that demonstrate little or no recognized risk factors. While significant, these individual and collective actions must be reinforced, and in many respects heightened, to fully respond to the new challenges our society faces. Therefore, the Real Estate Roundtable is pledging to work to increase the real estate industry's overall awareness of — and its ongoing commitment to — homeland security issues, including most significantly the issue of emergency preparedness. In the next few days The Real Estate Roundtable will call on CEOs of the nation's real estate ownership and management firms to: • • • Take responsibility - at the board level - for annually reviewing and updating (if necessary) the broad parameters of its security and emergency planning procedures. Insist that those plans and procedures are well exercised and that the responsibilities of management, the board of directors if applicable, and all employees are well understood. Insist that company emergency response procedures are based on sound risk assessments and, where appropriate, are coordinated with building tenants and local emergency response officials. Insist that senior company personnel with oversight over security matters develop working relationships with local and state law enforcement officials and that they ensure the reporting of suspicious incidents to those officials and also to the DHS via the Real Estate Information Sharing and Analysis Center. Encourage regional building managers and local real estate trade associations to participate in joint emergency response exercises with the Red Cross and/or local, state and, in some cases, federal officials.

In addition to leading by example on the approaches set forth above, Roundtable CEOs are being asked to commit to: • Participate personally in a CEO-level simulation exercise to be jointly developed by our industry, DHS, and possibly a security consulting firm.

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Further advance the industry's information sharing partnership with federal counterterrorism officials by participating in a "public service" type advertisement campaign to encourage the reporting of suspicious incidents to local, state and federal agencies.

We look forward to working with you both as we continue to chart a positive path in this crucial area. If you have any immediate questions please contact the Roundtable's President Jeffrey DeBoer, in our Washington office at (202) 639-8400. Sincerely,

Robert J. Lowe Chairman