Gramercy Property Trust 424B3 Prospectus supplement

Filed Pursuant to Rule 424(b)(3)

Registration No. 333-152653

CB RICHARD ELLIS REALTY TRUST

LOGO

Supplement No. 7 dated September 1, 2011

to the Prospectus dated May 2, 2011

This Supplement No. 7 supersedes and replaces the following prior supplements to our prospectus dated May 2, 2011: Supplement No. 1 dated May 19, 2011, Supplement No. 2 dated June 9, 2011, Supplement No. 3 dated July 6, 2011, Supplement No. 4 dated July 15, 2011, Supplement No. 5 dated July 19, 2011 and Supplement No. 6 dated August 16, 2011. This Supplement No. 7 provides information that shall be deemed part of, and must be read in conjunction with, the prospectus and the additional information incorporated by reference herein and described under the heading “Incorporation by Reference” in this Supplement No. 7. Capitalized terms used in this Supplement No. 7 have the same meanings in the prospectus unless otherwise stated herein. The terms “we,” “our,” “us” and CBRE REIT include CB Richard Ellis Realty Trust and its subsidiaries.

Table of Contents


	Supplement No. 7 Page No.	Prospectus Page No.
Status of Our Current Offering	1	1
Fees Paid in Connection with Our Offerings	1	92-93
Fees Paid in Connection with Our Operations	2	93
Real Estate Investments	2-15	57-79
The Investment Advisor	15	83-86
Distribution Policy	16	39-41
Summary Selected Financial Data	16-20	42-46
Description of Shares	21	96-102
Certain U.S. Federal Income Tax Consequences	21	109-125
Experts	21-22	134
Incorporation of Certain Information By Reference	22	135
Index to Consolidated Financial Statements	F-1	F-1
Pro Forma Financial Information	F-2-F-7	F-1

Status of Our Current Offering

Our registration statement on Form S-11 relating to this public offering was declared effective by the Securities and Exchange Commission, or the SEC, on January 30, 2009. From January 30, 2009 through June 30, 2011, we have accepted subscriptions from 33,339 investors and issued 128,587,241 common shares pursuant to this public offering, which includes 6,979,802 common shares issued pursuant to our dividend reinvestment plan, and received gross offering proceeds of approximately $1,282,382,506. As of June 30, 2011, approximately $1,717,617,494 in common shares were available to be offered and sold in this public offering. As of August 18, 2011, 200,435,196 common shares were issued and outstanding. Our board of trustees has confirmed that our current primary offering will close on January 30, 2012. The special committee of our board of trustees continues to explore and review strategic alternatives and liquidity events in accordance with our investment objectives. However, there can be no assurance that the exploration of strategic alternatives will result in any particular outcome. We expect to offer common shares through our DRIP beyond January 30, 2012. We may amend or terminate the DRIP offering at any time.

Fees Paid in Connection with Our Offerings

For the six months ended June 30, 2011 and the year ended December 31, 2010, our Dealer Manager earned the following fees:


	Six Months Ended June 30, 2011		Year Ended December 31, 2010
	Earned⁽¹⁾	Payable⁽²⁾	Earned⁽¹⁾		Payable⁽²⁾
Selling commissions	$17,465,000	$712,000	$	29,388,000	$	347,000
Dealer manager fees	$ 5,027,000	$204,000	$	13,179,000	$	99,000
Marketing support fees	$ 2,497,000	$102,000	$	4,523,000	$	50,000

⁽¹⁾	Earned represents the amount expensed on an accrual basis for services provided by the Dealer Manager during the period.

⁽²⁾	Payable represents the total unpaid amount due on an accrual basis to the Dealer Manager for services provided as of the balance sheet date specified.

For the six months ended June 30, 2011 and the year ended December 31, 2010, our Dealer Manager and our Investment Advisor and/or its affiliates earned the following other offering costs:


	Six Months Ended June 30, 2011				Year Ended December 31, 2010
	Earned⁽¹⁾		Payable⁽²⁾		Earned⁽³⁾		Payable⁽⁴⁾
Other Offering Costs	$	1,279,000	$	721,000	$	4,633,000	$	422,000

⁽¹⁾	Included in the other offering costs earned is $1,078,000 and $201,000 for the Dealer Manager and the Investment Advisor, respectively.

⁽²⁾	Included in the payable amount is $721,000 due to the Dealer Manager as of the balance sheet date specified.

⁽³⁾	Included in the other offering costs earned is $4,412,000 and $221,000 for the Dealer Manager and the Investment Advisor, respectively.

⁽⁴⁾	Included in the payable amount is $407,000 and $15,000 due to the Dealer Manager and our Investment Advisor, respectively, as of the balance sheet date specified.

Fees Paid in Connection with Our Operations

For the six months ended June 30, 2011 and the year ended December 31, 2010, our Investment Advisor and/or its affiliates earned the following fees:


	Six Months Ended June 30, 2011				Year Ended December 31, 2010
	Earned⁽¹⁾		Payable⁽²⁾		Earned⁽¹⁾		Payable⁽²⁾
Acquisition fees and expenses⁽³⁾	$	10,000,000	$	—	$	13,056,000	$	—
Investment management fees⁽⁴⁾	$	9,570,000	$	1,692,000	$	11,611,000	$	1,330,000
Property management fees	$	585,000	$	191,000	$	955,000	$	191,000

⁽¹⁾	Earned represents the amount expensed on an accrual basis for services provided by the Investment Advisor during the period.

⁽²⁾	Payable represents the unpaid amount due on an accrual basis to the Investment Advisor for services provided.

⁽³⁾	In connection with services provided to the Investment Advisor, the Sub-Advisor, pursuant to a sub-advisory agreement, was paid $1,753,000 and $2,216,000 by the Investment Advisor for the six months ended June 30, 2011 and the year ended December 31, 2010, respectively.

⁽⁴⁾

The Investment Advisor did not waive any investment management fees for the six months ended June 30, 2011 or the year ended December 31, 2010.In connection with services provided to the Investment Advisor, the Sub-Advisor, pursuant to a sub-advisory agreement, was paid $1,321,000 and $1,604,000 by the Investment Advisor for the six months ended June 30, 2011 and the year ended December 31, 2010, respectively.

The Investment Advisor earned a construction supervision fee of $212,000 for the three and six months ended June 30, 2011. There were no construction supervision fees earned in 2010.

CBRE Capital Markets, an affiliate of the Investment Advisor, received $751,000 and $1,217,000 in mortgage banking fees for the six months ended June 30, 2011 and for the year ended December 31, 2010, respectively. Leasing and brokerage fees aggregating $1,035,000 and $895,000 were paid to the Investment Advisor or its affiliates for the six months ended June 30, 2011 and the year ended December 31, 2010, respectively. Construction management fees of $19,000 and $20,700 were paid to affiliates of the Investment Advisor for the six months ended June 30, 2011 and the year ended December 31, 2010, respectively.

Our share of investment management and acquisition fees paid to CB Richard Ellis Investors SP Asia II, LLC in connection with our investment in CBRE Strategic Partners Asia were approximately $137,000 and $0, respectively, for the six months ended June 30, 2011. Through June 30, 2011, we had paid no fees to our Investment Advisor relating to this investment.

Real Estate Investments

This section contains certain information that supplements and updates the information under the section “Real Estate Investments,” which begins on page 57 of our prospectus.

Properties

As of June 30, 2011, we owned, on a consolidated basis, 75 office, retail, and industrial (primarily warehouse/distribution) properties located in 15 states (Arizona, California, Florida, Georgia, Illinois, Kentucky, Massachusetts, Minnesota, New Jersey, North Carolina, Ohio, South Carolina, Texas, Utah and Virginia) and in the United Kingdom, encompassing approximately 14,614,000 rentable square feet, in the aggregate. Our consolidated properties were approximately 90.77% leased (based upon square feet) as of June 30, 2011. As of June 30, 2011, certain of our consolidated properties were subject to mortgage debt, a description of which is set forth in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2011, which is incorporated herein by reference.

In addition, we have ownership interests in five unconsolidated entities that, as of June 30, 2011, owned interests in 51 properties. Excluding those properties owned through our investment in CBRE Strategic Partners Asia, we owned, on an unconsolidated basis, 43 industrial, office and retail properties located in 10 states (Arizona, Florida, Illinois, Indiana, Minnesota, Missouri, North Carolina, Ohio, Tennessee and Texas) and in the United Kingdom and Europe encompassing approximately 2,356,000 rentable square feet. Our unconsolidated properties were approximately 98.11% leased (based upon square feet) as of June 30, 2011. As of June 30, 2011, certain of our unconsolidated properties were subject to mortgage debt, a description of which is set forth in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2011, which is incorporated herein by reference.

As of June 30, 2011, our portfolio was 94.13% leased. The total effective annual rents for our industrial properties, office properties and retail properties were approximately $61,550,000, $139,129,000 and $8,493,000, as of June 30, 2011, respectively (net of any rent concessions). The average effective annual rent per square foot for our industrial properties, office properties and retail properties was approximately $3.68, $19.19 and $17.82 as of June 30, 2011, respectively (net of any rent concessions).

The following table provides information relating to our properties, excluding those owned through our investment in CBRE Strategic Partners Asia, as of June 30, 2011. These properties consisted of 62 industrial properties, encompassing 18,511,000 rentable square feet, 53 office properties, encompassing 7,963,000 rentable square feet and 3 retail properties, encompassing 496,000 rentable square feet.


Property and Market	Date Acquired		Year Built		Property Type	Our Effective Ownership			Net Rentable Square Feet (in thousands)		Percentage Leased			Approximate Total Acquisition Cost⁽¹⁾ (in thousands)
Domestic Consolidated Properties:
REMEC Corporate Campus 1 San Diego, CA		9/15/2004		1983	Office		100.00	%		34		100.00	%	$	6,833
REMEC Corporate Campus 2 San Diego, CA		9/15/2004		1983	Office		100.00	%		30		100.00	%		6,125
REMEC Corporate Campus 3 San Diego, CA		9/15/2004		1983	Office		100.00	%		37		100.00	%		7,523
REMEC Corporate Campus 4 San Diego, CA		9/15/2004		1983	Office		100.00	%		31		100.00	%		6,186
300 Constitution Drive Boston, MA		11/3/2004		1998	Warehouse/ Distribution		100.00	%		330		100.00	%		19,805
Deerfield Commons⁽²⁾ Atlanta, GA		6/21/2005		2000	Office		100.00	%		122		100.00	%		21,834
505 Century⁽³⁾ Dallas, TX		1/9/2006		1997	Warehouse/ Distribution		100.00	%		100		100.00	%		6,095
631 International⁽³⁾ Dallas, TX		1/9/2006		1998	Warehouse/ Distribution		100.00	%		73		100.00	%		5,407
660 North Dorothy⁽³⁾ Dallas, TX		1/9/2006		1997	Warehouse/ Distribution		100.00	%		120		87.50	%		6,836
Bolingbrook Point III Chicago, IL		8/29/2007		2006	Warehouse/ Distribution		100.00	%		185		53.18	%		18,170
Cherokee Corporate Park⁽³⁾ Spartanburg, SC		8/30/2007		2000	Warehouse/ Distribution		100.00	%		60		0.00	%		3,775
Community Cash Complex 1⁽³⁾ Spartanburg, SC		8/30/2007		1960	Warehouse/ Distribution		100.00	%		205		34.79	%		2,690
Community Cash Complex 2⁽³⁾ Spartanburg, SC		8/30/2007		1978	Warehouse/ Distribution		100.00	%		145		83.50	%		2,225
Community Cash Complex 3⁽³⁾ Spartanburg, SC		8/30/2007		1981	Warehouse/ Distribution		100.00	%		116		100.00	%		1,701
Community Cash Complex 4⁽³⁾ Spartanburg, SC		8/30/2007		1984	Warehouse/ Distribution		100.00	%		33		100.00	%		547
Community Cash Complex 5⁽³⁾ Spartanburg, SC		8/30/2007		1984	Warehouse/ Distribution		100.00	%		53		100.00	%		824
Fairforest Building 1⁽³⁾ Spartanburg, SC		8/30/2007		2000	Warehouse/ Distribution		100.00	%		51		100.00	%		2,974
Fairforest Building 2⁽³⁾ Spartanburg, SC		8/30/2007		1999	Warehouse/ Distribution		100.00	%		104		100.00	%		5,379
Fairforest Building 3⁽³⁾ Spartanburg, SC		8/30/2007		2000	Warehouse/ Distribution		100.00	%		100		100.00	%		5,760
Fairforest Building 4⁽³⁾ Spartanburg, SC		8/30/2007		2001	Warehouse/ Distribution		100.00	%		101		100.00	%		5,640
Fairforest Building 5 Spartanburg, SC		8/30/2007		2006	Warehouse/ Distribution		100.00	%		316		100.00	%		16,968
Fairforest Building 6 Spartanburg, SC		8/30/2007		2005	Warehouse/ Distribution		100.00	%		101		100.00	%		7,469
Fairforest Building 7⁽³⁾ Spartanburg, SC		8/30/2007		2006	Warehouse/ Distribution		100.00	%		101		83.78	%		5,626


Property and Market	Date Acquired		Year Built		Property Type	Our Effective Ownership			Net Rentable Square Feet (in thousands)		Percentage Leased			Approximate Total Acquisition Cost⁽¹⁾ (in thousands)
Greenville/Spartanburg Industrial Park⁽³⁾ Spartanburg, SC		8/30/2007		1990	Warehouse/ Distribution		100.00	%		67		100.00	%		3,388
Highway 290 Commerce Park Building 1⁽³⁾ Spartanburg, SC		8/30/2007		1995	Warehouse/ Distribution		100.00	%		150		100.00	%		5,388
Highway 290 Commerce Park Building 5⁽³⁾ Spartanburg, SC		8/30/2007		1993	Warehouse/ Distribution		100.00	%		30		100.00	%		1,420
Highway 290 Commerce Park Building 7⁽³⁾ Spartanburg, SC		8/30/2007		1994	Warehouse/ Distribution		100.00	%		88		0.00	%		4,889
HJ Park Building 1 Spartanburg, SC		8/30/2007		2003	Warehouse/ Distribution		100.00	%		70		100.00	%		4,216
Jedburg Commerce Park⁽³⁾ Charleston, SC		8/30/2007		2007	Warehouse/ Distribution		100.00	%		513		100.00	%		41,991
Kings Mountain I Charlotte, NC		8/30/2007		1998	Warehouse/ Distribution		100.00	%		100		100.00	%		5,497
Kings Mountain II Charlotte, NC		8/30/2007		2002	Warehouse/ Distribution		100.00	%		301		100.00	%		11,311
Mount Holly Building Charleston, SC		8/30/2007		2003	Warehouse/ Distribution		100.00	%		101		100.00	%		6,208
North Rhett I Charleston, SC		8/30/2007		1973	Warehouse/ Distribution		100.00	%		285		100.00	%		10,302
North Rhett II Charleston, SC		8/30/2007		2001	Warehouse/ Distribution		100.00	%		102		100.00	%		7,073
North Rhett III Charleston, SC		8/30/2007		2002	Warehouse/ Distribution		100.00	%		80		100.00	%		4,812
North Rhett IV Charleston, SC		8/30/2007		2005	Warehouse/ Distribution		100.00	%		316		100.00	%		17,060
Orangeburg Park Building Charleston, SC		8/30/2007		2003	Warehouse/ Distribution		100.00	%		101		100.00	%		5,474
Orchard Business Park 2⁽³⁾ Spartanburg, SC		8/30/2007		1993	Warehouse/ Distribution		100.00	%		18		100.00	%		761
Union Cross Building I Winston-Salem, NC		8/30/2007		2005	Warehouse/ Distribution		100.00	%		101		100.00	%		6,585
Union Cross Building II Winston-Salem, NC		8/30/2007		2005	Warehouse/ Distribution		100.00	%		316		0.00	%		17,216
Highway 290 Commerce Park Building 2⁽³⁾ Spartanburg, SC		9/24/2007		1995	Warehouse/ Distribution		100.00	%		100		100.00	%		4,626
Highway 290 Commerce Park Building 6⁽³⁾ Spartanburg, SC		11/1/2007		1996	Warehouse/ Distribution		100.00	%		105		42.86	%		3,760
Lakeside Office Center Dallas, TX		3/5/2008		2006	Office		100.00	%		99		95.35	%		17,994
Kings Mountain III Charlotte, NC		3/14/2008		2007	Warehouse/ Distribution		100.00	%		542		100.00	%		25,728
Enclave on the Lake⁽³⁾ Houston, TX		7/1/2008		1999	Office		100.00	%		171		100.00	%		37,827
Avion Midrise III Washington, DC		11/18/2008		2002	Office		100.00	%		71		100.00	%		21,111
Avion Midrise IV Washington, DC		11/18/2008		2002	Office		100.00	%		72		100.00	%		21,112
13201 Wilfred Lane Minneapolis, MN		6/29/2009		1999	Warehouse/ Distribution		100.00	%		335		100.00	%		15,340
3011, 3055 & 3077 Comcast Place East Bay, CA		7/1/2009		1988	Office		100.00	%		220		100.00	%		49,000
140 Depot Street Boston, MA		7/31/2009		2009	Warehouse/ Distribution		100.00	%		238		100.00	%		18,950
12650 Ingenuity Drive Orlando, FL		8/5/2009		1999	Office		100.00	%		125		100.00	%		25,350
Crest Ridge Corporate Center I Minneapolis, MN		8/17/2009		2009	Office		100.00	%		116		100.00	%		28,419
West Point Trade Center Jacksonville, FL		12/30/2009		2009	Warehouse/ Distribution		100.00	%		602		100.00	%		29,000
5160 Hacienda Drive East Bay, CA		4/8/2010		1988	Office		100.00	%		202		100.00	%		38,500
10450 Pacific Center Court San Diego, CA		5/7/2010		1985	Office		100.00	%		134		100.00	%		32,750
225 Summit Ave Northern NJ		6/21/2010		1966	Office		100.00	%		143		100.00	%		40,600


Property and Market	Date Acquired		Year Built		Property Type	Our Effective Ownership			Net Rentable Square Feet (in thousands)		Percentage Leased			Approximate Total Acquisition Cost⁽¹⁾ (in thousands)
One Wayside Road Boston, MA		6/24/2010		1998	Office		100.00	%		200		100.00	%		55,525
100 Tice Blvd. Northern NJ		9/28/2010		2007	Office		100.00	%		209		100.00	%		67,600
Ten Parkway North Chicago, IL		10/12/2010		1999	Office		100.00	%		100		100.00	%		25,000
4701 Gold Spike Drive Dallas, TX		10/27/2010		2002	Warehouse/ Distribution		100.00	%		420		100.00	%		20,300
1985 International Way Cincinnati, OH		10/27/2010		1998	Warehouse/ Distribution		100.00	%		189		100.00	%		14,800
Rickenbacker II⁽³⁾⁽⁴⁾ Columbus, OH		10/27/2010		1999	Warehouse/ Distribution		100.00	%		434		47.37	%		8,600
Summit Distribution Center Salt Lake City, UT		10/27/2010		2001	Warehouse/ Distribution		100.00	%		275		100.00	%		13,400
3660 Deerpark Boulevard Jacksonville, FL		10/27/2010		2002	Warehouse/ Distribution		100.00	%		322		100.00	%		15,300
Tolleson Commerce Park II Phoenix, AZ		10/27/2010		1999	Warehouse/ Distribution		100.00	%		217		100.00	%		9,200
Pacific Corporate Park⁽²⁾ Washington, DC		11/15/2010		2002	Office		100.00	%		696		100.00	%		144,500
100 Kimball Drive Northern NJ		12/10/2010		2007	Office		100.00	%		175		100.00	%		60,250
Rickenbacker III⁽³⁾⁽⁴⁾ Columbus, OH		12/17/2010		2001	Warehouse/ Distribution		100.00	%		676		60.71	%		13,400
70 Hudson⁽⁵⁾ New York City Metro, NJ		4/11/2011		2000	Office		100.00	%		409		100.00	%		155,000
90 Hudson⁽⁵⁾New York City Metro, NJ		4/11/2011		2000	Office		100.00	%		418		100.00	%		155,000
Millers Ferry Road⁽³⁾⁽⁵⁾ Dallas, TX		6/2/2011		2011	Warehouse/ Distribution		100.00	%		1,020		100.00	%		40,784

Total Domestic Consolidated Properties										14,324		90.93	%		1,528,709

International Consolidated Properties:
602 Central Blvd.⁽³⁾ Coventry, UK		4/27/2007		2001	Office		100.00	%		50		0.00	%		23,847
Thames Valley Five Reading, UK		3/20/2008		1998	Office		100.00	%		40		100.00	%		29,572
Albion Mills Retail Park Wakefield, UK		7/11/2008		2000	Retail		100.00	%		55		100.00	%		22,098
Maskew Retail Park Peterborough, UK		10/23/2008		2007	Retail		100.00	%		145		100.00	%		53,740

Total International Consolidated Properties										290		82.77	%		129,257

Total Consolidated Properties										14,614		90.77	%		1,657,966

Domestic Unconsolidated Properties⁽⁶⁾:
Buckeye Logistics Center⁽⁷⁾ Phoenix, AZ		6/12/2008		2008	Warehouse/ Distribution		80.00	%		605		100.00	%		35,573
Afton Ridge Shopping Center⁽⁸⁾ Charlotte, NC		9/18/2008		2007	Retail		90.00	%		296		96.35	%		44,530
AllPoints at Anson Bldg. 1⁽⁷⁾ Indianapolis, IN		9/30/2008		2008	Warehouse/ Distribution		80.00	%		1,037		100.00	%		41,305
12200 President’s Court⁽⁷⁾ Jacksonville, FL		9/30/2008		2008	Warehouse/ Distribution		80.00	%		772		100.00	%		29,995
201 Sunridge Blvd.⁽⁷⁾ Dallas, TX		9/30/2008		2008	Warehouse/ Distribution		80.00	%		823		100.00	%		25,690
Aspen Corporate Center 500⁽⁷⁾ Nashville, TN		9/30/2008		2008	Office		80.00	%		180		100.00	%		29,936
125 Enterprise Parkway⁽⁷⁾ Columbus, OH		12/10/2008		2008	Warehouse/ Distribution		80.00	%		1,142		100.00	%		38,088
AllPoints Midwest Bldg. I⁽⁷⁾ Indianapolis, IN		12/10/2008		2008	Warehouse/ Distribution		80.00	%		1,200		100.00	%		41,428
Celebration Office Center⁽⁷⁾ Orlando, FL		5/13/2009		2009	Office		80.00	%		101		100.00	%		13,640
22535 Colonial Pkwy⁽³⁾⁽⁷⁾ Houston, TX		5/13/2009		2009	Office		80.00	%		90		100.00	%		11,596
Fairfield Distribution Ctr. IX⁽⁷⁾ Tampa, FL		5/13/2009		2008	Warehouse/ Distribution		80.00	%		136		100.00	%		7,151


Property and Market	Date Acquired		Year Built		Property Type	Our Effective Ownership			Net Rentable Square Feet (in thousands)		Percentage Leased			Approximate Total Acquisition Cost⁽¹⁾ (in thousands)
Northpoint III⁽⁷⁾ Orlando, FL		10/15/2009		2001	Office		80.00	%		108		100.00	%		14,592
Goodyear Crossing Ind. Park II⁽⁷⁾ Phoenix, AZ		12/07/2009		2009	Warehouse/ Distribution		80.00	%		820		100.00	%		36,516
3900 North Paramount Parkway⁽⁷⁾ Raleigh, NC		3/31/2010		1999	Office		80.00	%		101		100.00	%		11,176
3900 South Paramount Parkway⁽⁷⁾ Raleigh, NC		3/31/2010		1999	Office		80.00	%		119		100.00	%		13,055
1400 Perimeter Park Drive⁽⁷⁾ Raleigh, NC		3/31/2010		1991	Office		80.00	%		45		100.00	%		3,970
Miramar I⁽⁷⁾⁽⁹⁾ Fort Lauderdale, FL		3/31/2010		2001	Office		80.00	%		94		100.00	%		13,645
Miramar II⁽⁷⁾⁽⁹⁾ Fort Lauderdale, FL		3/31/2010		2001	Office		80.00	%		129		100.00	%		20,899
McAuley Place⁽³⁾⁽⁷⁾ Cincinnati, OH		12/21/2010		2001	Office		80.00	%		191		98.57	%		28,000
Point West I⁽³⁾⁽⁷⁾ Dallas, TX		12/21/2010		2008	Office		80.00	%		183		100.00	%		23,600
Sam Houston Crossing I⁽³⁾⁽⁷⁾ Houston, TX		12/21/2010		2007	Office		80.00	%		160		100.00	%		20,400
Regency Creek⁽³⁾⁽⁷⁾ Raleigh, NC		12/21/2010		2008	Office		80.00	%		122		100.00	%		18,000
Easton III⁽³⁾⁽⁷⁾ Columbus, OH		12/21/2010		1999	Office		80.00	%		135		100.00	%		14,400
533 Maryville Centre⁽³⁾⁽⁷⁾ St. Louis, MD		12/21/2010		2000	Office		80.00	%		125		100.00	%		19,102
555 Maryville Centre⁽³⁾⁽⁷⁾ St. Louis, MD		12/21/2010		1999	Office		80.00	%		127		67.84	%		15,578
Norman Point I⁽³⁾⁽⁵⁾⁽⁷⁾ Minneapolis, MN		3/24/2011		2000	Office		80.00	%		213		100.00	%		34,080
Norman Point II⁽³⁾⁽⁵⁾⁽⁷⁾ Minneapolis, MN		3/24/2011		2007	Office		80.00	%		324		100.00	%		37,520
One Conway Park⁽³⁾⁽⁵⁾⁽⁷⁾ Chicago, IL		3/24/2011		1989	Office		80.00	%		105		71.07	%		12,320
West Lake at Conway⁽³⁾⁽⁵⁾⁽⁷⁾ Chicago, IL		3/24/2011		2008	Office		80.00	%		99		67.83	%		14,060
The Landings I⁽³⁾⁽⁵⁾⁽⁷⁾ Cincinnati, OH		3/24/2011		2006	Office		80.00	%		176		100.00	%		23,728
The Landings II⁽³⁾⁽⁵⁾⁽⁷⁾ Cincinnati, OH		3/24/2011		2007	Office		80.00	%		175		96.06	%		20,928
One Easton Oval^(3)(5)(7) Columbus, OH		3/24/2011		1997	Office		80.00	%		125		55.30	%		9,529
Two Easton Oval⁽³⁾⁽⁵⁾⁽⁷⁾ Columbus, OH		3/24/2011		1995	Office		80.00	%		129		74.57	%		10,195
Atrium I⁽³⁾⁽⁵⁾⁽⁷⁾ Columbus, OH		3/24/2011		1996	Office		80.00	%		315		100.00	%		36,200
Weston Pointe I⁽³⁾⁽⁵⁾⁽⁷⁾ Ft Lauderdale, FL		3/24/2011		1999	Office		80.00	%		98		82.08	%		15,507
Weston Pointe II⁽³⁾⁽⁵⁾⁽⁷⁾ Ft Lauderdale, FL		3/24/2011		2000	Office		80.00	%		97		96.29	%		18,701
Weston Pointe III⁽³⁾⁽⁵⁾⁽⁷⁾ Ft Lauderdale, FL		3/24/2011		2003	Office		80.00	%		97		100.00	%		18,867
Weston Pointe IV⁽³⁾⁽⁵⁾⁽⁷⁾ Ft Lauderdale, FL		3/24/2011		2006	Office		80.00	%		96		100.00	%		22,605

Total Domestic Unconsolidated Properties										10,890		97.86	%		846,105

International Unconsolidated Properties
Amber Park^(3)(10) Nottingham, UK		6/10/2010		1997	Warehouse/ Distribution		80.00	%		208		100.00	%		12,514
Brackmills^(3)(10) Northampton, UK		6/10/2010		1984	Warehouse/ Distribution		80.00	%		187		100.00	%		13,407
Düren^(3)(11) Rhine-Ruhr, Germany		6/10/2010		2008	Warehouse/ Distribution		80.00	%		392		100.00	%		13,148
Schönberg^(3)(11) Hamburg, Germany		6/10/2010		2009	Warehouse/ Distribution		80.00	%		454		100.00	%		13,819
Langenbach⁽³⁾⁽¹¹⁾ Munich, Germany		10/28/2010		2010	Warehouse/ Distribution		80.00	%		225		100.00	%		18,573

Total International Unconsolidated Properties										1,466		100.00	%		71,461

Total Unconsolidated Properties⁽⁶⁾										12,356		98.11	%		917,566

Total Properties⁽⁶⁾										26,970		94.13	%	$	2,575,532

⁽¹⁾	Approximate total acquisition cost represents the pro rata purchase price inclusive of customary closing costs and acquisition fees/acquisition expenses.

⁽²⁾	Includes undeveloped land zoned for future use.

⁽³⁾	This property was not encumbered by mortgage debt as of June 30, 2011.

⁽⁴⁾	Real estate held for sale as of June 30, 2011.

⁽⁵⁾

The estimated acquisition cap rates for 70 & 90 Hudson (in the aggregate), Millers Ferry Road, Norman Point I, Norman Point II, One Conway Park, West Lake at Conway, The Landings, The Landings II, One Easton Oval, Two Easton Oval, Atrium I, Weston Pointe I, Weston Pointe II, Weston Pointe III and Weston Pointe IV were 7.9%, 7.8%, 8.4%, 7.7%, 7.7%, 7.6%, 8.0%, 8.1%, 4.2%, 7.2%, 8.2%, 8.5%, 9.9%, 8.0% and 10.1%, respectively. Acquisition cap rate equals annualized in-place net operating income divided by total acquisition cost for the property. Annualized in-place net operating income equals, on an annualized cash basis as derived from leases in-place at the time we acquire the property, rental income and tenant reimbursements less property and related expenses (operating maintenance, management fees and real estate taxes) and excludes other non-property income and expenses, interest expense, depreciation and amortization and our company-level general and administrative expenses. Property and related expenses (operating maintenance, management fees and real estate taxes) are estimated on an annualized basis at the time we acquire the property and are based on management’s review of the prior operator’s historical costs and existing market conditions at the time of acquisition. The acquisition cap rate is meant as a measure of in-place annualized net operating income yield at the time we acquire the property, and is not meant to be either an indication of historical, or a projection of anticipated future, net operating income yield for the acquisition.

⁽⁶⁾	Does not include CBRE Strategic Partners Asia properties.

⁽⁷⁾	This property is held through the Duke joint venture.

⁽⁸⁾	This property is held through the Afton Ridge joint venture.

⁽⁹⁾	Consolidated properties acquired on December 31, 2009 and contributed to the Duke joint venture during March 2010.

⁽¹⁰⁾	This property is held through the UK JV.

⁽¹¹⁾	This property is held through the European JV.

Property Type Concentration

Our property type concentrations as of June 30, 2011 are as follows (Net Rentable Square Feet and Approximate Total Acquisition Cost in thousands):


	Consolidated Properties						Unconsolidated Properties⁽¹⁾						Consolidated & Unconsolidated Properties⁽¹⁾
Property Type	Properties		Net Rentable Square Feet		Approximate Total Acquisition Cost		Properties		Net Rentable Square Feet		Approximate Total Acquisition Cost		Properties		Net Rentable Square Feet		Approximate Total Acquisition Cost
Office		24		3,904	$	1,077,458		29		4,059	$	545,829		53		7,963	$	1,623,287
Warehouse/Distribution		49		10,510		504,670		13		8,001		327,207		62		18,511		831,877
Retail		2		200		75,838		1		296		44,530		3		496		120,368

Total		75		14,614	$	1,657,966		43		12,356	$	917,566		118		26,970	$	2,575,532

⁽¹⁾	Number of Properties and Net Rentable Square Feet for Unconsolidated Properties are at 100%. Approximate Total Acquisition Cost for Unconsolidated Properties is at our pro rata share of effective ownership. Does not include our investment in CBRE Strategic Partners Asia.

Geographic Concentration

Our geographic concentrations as of June 30, 2011 are as follows (Net Rentable Square Feet and Approximate Total Acquisition Cost in thousands):


	Consolidated Properties						Unconsolidated Properties⁽¹⁾						Consolidated & Unconsolidated Properties⁽¹⁾
Domestic	Properties		Net Rentable Square Feet		Approximate Total Acquisition Cost		Properties		Net Rentable Square Feet		Approximate Total Acquisition Cost		Properties		Net Rentable Square Feet		Approximate Total Acquisition Cost
New Jersey		5		1,353	$	478,450		—		—	$	—		5		1,353	$	478,450
Florida		3		1,048		69,650		10		1,728		175,602		13		2,776		245,252
Texas		7		2,003		135,243		4		1,255		81,286		11		3,258		216,529
Ohio		2		1,110		22,000		8		2,388		181,068		10		3,498		203,068
Virginia		3		839		186,723		—		—		—		3		839		186,723
South Carolina		28		3,614		182,946		—		—		—		28		3,614		182,946
North Carolina		5		1,360		66,337		5		683		90,731		10		2,043		157,068
California		7		688		146,917		—		—		—		7		688		146,917
Minnesota		2		452		43,759		2		537		71,600		4		989		115,359
Massachusetts		3		769		94,280		—		—		—		3		769		94,280
Indiana		—		—		—		2		2,237		82,733		2		2,237		82,733
Arizona		1		217		9,200		2		1,425		72,089		3		1,642		81,289
Illinois		2		285		43,170		2		205		26,380		4		490		69,550
Missouri		—		—		—		2		252		34,680		2		252		34,680
Tennessee		—		—		—		1		180		29,936		1		180		29,936
Georgia		1		122		21,834		—		—		—		1		122		21,834
Kentucky		1		189		14,800		—		—		—		1		189		14,800
Utah		1		275		13,400		—		—		—		1		275		13,400

Total Domestic		71		14,324		1,528,709		38		10,890		846,105		109		25,214		2,374,814

International
United Kingdom		4		290		129,257		2		395		25,921		6		685		155,178
Germany		—		—		—		3		1,071		45,540		3		1,071		45,540

Total International		4		290		129,257		5		1,466		71,461		9		1,756		200,718

Total		75		14,614	$	1,657,966		43		12,356	$	917,566		118		26,970	$	2,575,532

⁽¹⁾	Number of Properties and Net Rentable Square Feet for Unconsolidated Properties are at 100%. Approximate Total Acquisition Cost for Unconsolidated Properties is at our pro rata share of effective ownership. Does not include our investment in CBRE Strategic Partners Asia.

Significant Tenants

The following table details our largest tenants as of June 30, 2011 (in thousands):


	Tenant	Primary Industry	Consolidated Properties				Unconsolidated Properties⁽¹⁾				Consolidated & Unconsolidated Properties⁽¹⁾
	Tenant	Primary Industry	Net Rentable Square Feet		Annualized Base Rent		Net Rentable Square Feet		Annualized Base Rent		Net Rentable Square Feet		Annualized Base Rent
1	Barclay’s Capital	Financial Services		409	$	12,278		—	$	—		409	$	12,278
2	General Services Administration	Government		71		2,263		378		8,391		449		10,654
3	Raytheon Company	Defense and Aerospace		666		9,495		—		—		666		9,495
4	Amazon.com, Inc⁽²⁾	Internet Retail		—		—		2,462		8,964		2,462		8,964
5	National Union Fire Insurance Company	Insurance		172		6,010						172		6,010
6	Nuance Communications	Software		201		5,535		—		—		201		5,535
7	Lord Abbett & Co	Financial Services		149		5,211						149		5,211
8	Eisai	Pharmaceutical and Health Care Related		209		4,772		—		—		209		4,772
9	Comcast	Telecommunications		220		4,697		—		—		220		4,697
10	Deloitte	Professional Services		175		4,390		—		—		175		4,390
11	Barr Laboratories	Pharmaceutical and Health Care Related		143		4,061		—		—		143		4,061
12	Unilever⁽³⁾	Consumer Products		—		—		1,595		3,864		1,595		3,864
13	PPD Development	Pharmaceutical and Health Care Related		—		—		251		3,688		251		3,688
14	Eveready Battery Company	Consumer Products		—		—		168		3,568		168		3,568
15	NDB Capital Markets	Financial Services		97		3,400		—		—		97		3,400
16	Carl Zeiss	Pharmaceutical and Health Care Related		202		3,336		—		—		202		3,336
17	Whirlpool Corporation	Consumer Products		1,020		3,212						1,020		3,212
18	ConAgra Foods	Food Service and Retail		742		3,028		—		—		742		3,028
19	American LaFrance	Vehicle Related Manufacturing		513		2,979		—		—		513		2,979
20	Prime Distribution Services	Logistics and Distribution		—		—		1,200		2,958		1,200		2,958
21	Nationwide Mutual Insurance Co	Insurance		—		—		315		2,869		315		2,869
22	Kellogg’s	Consumer Products		—		—		1,142		2,817		1,142		2,817
23	Time Warner	Telecommunications		134		2,814		—		—		134		2,814
24	B&Q	Home Furnishings/Home Improvement		104		2,685		—		—		104		2,685
25	Syngenta Seeds	Agriculture		116		2,472		—		—		116		2,472
26	Dr. Pepper Snapple	Food Service and Retail		601		2,460		—		—		601		2,460
27	REMEC	Defense and Aerospace		133		2,431		—		—		133		2,431
28	Verizon Wireless⁽⁴⁾	Telecommunications		—		—		180		2,246		180		2,246
29	Royal Caribbean Cruises	Travel/Leisure		—		—		129		2,182		129		2,182
30	Iowa College Acquisition Corp⁽⁵⁾	Education		124		2,179		—		—		124		2,179
31	Citicorp North America, Inc.	Financial Services		—		—		194		2,081		194		2,081
32	American Home Mortgage	Financial Services		—		—		183		2,024		183		2,024
33	Best Buy	Specialty Retail		238		1,657		30		317		268		1,974
34	NCS Pearson, Inc.	Education		—		—		153		1,963		153		1,963
35	Markel Midwest, Inc.	Insurance		100		1,892		—		—		100		1,892
36	Disney	Travel/Leisure		—		—		101		1,855		101		1,855
37	Lockheed Martin	Defense and Aerospace		71		1,847		—		—		71		1,847
38	Mercy Health Partners of SW Ohio	Pharmaceutical and Health Care Related		—		—		113		1,795		113		1,795
39	ABB, Inc.	Other Manufacturing		—		—		91		1,641		91		1,641
40	Regus	Executive Office Suites		86		1,602		—		—		86		1,602
	Other (221 tenants)			6,569		28,309		3,438		30,934		10,007		59,243

				13,265	$	125,015		12,123	$	84,157		25,388	$	209,172

⁽¹⁾	Net Rentable Square Feet for Unconsolidated Properties is at 100%. Annualized Base Rent for Unconsolidated Properties is at our pro rata share of effective ownership. Does not include our investment in CBRE Strategic Partners Asia which is not material.

⁽²⁾	Our tenants are Amazon.com.azdc, Inc., in our Buckeye Logistics Center and Goodyear Crossing Park II properties, and Amazon.com.indc, LLC, in our AllPoints at Anson Bldg. 1 property, which are all wholly-owned subsidiaries of Amazon.com.

⁽³⁾	Our tenant is CONOPCO, Inc., a wholly-owned subsidiary of Unilever.

⁽⁴⁾	Verizon Wireless is the d/b/a for Cellco Partnership.

⁽⁵⁾	Our tenant is Iowa College Acquisitions Corp., an operating subsidiary of Kaplan, Inc. The lease is guaranteed by Kaplan Inc.

Tenant Industries

Our tenants operate across a wide range of industries. The following table details our tenant-industry concentrations as of June 30, 2011 (in thousands):


	Consolidated Properties				Unconsolidated Properties⁽¹⁾				Consolidated & Unconsolidated Properties⁽¹⁾
Primary Tenant Industry Category	Net Rentable Square Feet		Annualized Base Rent		Net Rentable Square Feet		Annualized Base Rent		Net Rentable Square Feet		Annualized Base Rent
Financial Services		837	$	22,471		489	$	5,783		1,326	$	28,254
Pharmaceutical and Health Care Related		905		13,778		681		8,086		1,586		21,864
Defense and Aerospace		901		14,504		7		121		908		14,625
Consumer Products		1,184		4,139		3,337		9,757		4,521		13,896
Logistics and Distribution		1,772		6,272		2,023		6,718		3,795		12,990
Insurance		271		7,902		434		4,496		705		12,398
Telecommunications		687		9,082		195		2,444		882		11,526
Government		72		2,263		378		8,391		450		10,654
Internet Retail		330		1,425		2,462		8,964		2,792		10,389
Other Manufacturing		909		3,158		319		5,795		1,228		8,953
Food Service and Retail		2,017		7,477		37		467		2,054		7,944
Professional Services		243		5,134		178		2,355		421		7,489
Education		124		2,179		364		5,216		488		7,395
Business Services		736		2,874		308		3,708		1,044		6,582
Software		201		5,535		22		357		223		5,892
Home Furnishings/Home Improvement		462		4,598		73		1,173		535		5,771
Vehicle Related Manufacturing		828		4,537		—		—		828		4,537
Specialty Retail		391		3,191		111		1,178		502		4,369
Travel and Leisure		—		—		240		4,217		240		4,217
Agriculture		116		2,472		9		95		125		2,567
Apparel Retail		—		—		227		2,012		227		2,012
Executive Office Suites		86		1,602		—		—		86		1,602
Utilities		—		—		127		1,516		127		1,516
Petroleum and Mining		171		299		55		646		226		945
Other Retail		22		123		47		662		69		785

Total		13,265	$	125,015		12,123	$	84,157		25,388	$	209,172

⁽¹⁾	Net Rentable Square Feet for Unconsolidated Properties is at 100%. Annualized Base Rent for Unconsolidated Properties is at our pro rata share of effective ownership. Does not include our investment in CBRE Strategic Partners Asia.

Tenant Lease Expirations

The following table sets forth a schedule of expiring leases for our consolidated and unconsolidated properties as of June 30, 2011 (Expiring Net Rentable Square Feet and Expiring Base Rent in thousands):


	Consolidated Properties				Unconsolidated Properties⁽¹⁾				Consolidated & Unconsolidated Properties⁽¹⁾
	Expiring Net Rentable Square Feet		Expiring Base Rent		Expiring Net Rentable Square Feet		Expiring Base Rent		Number of Expiring Leases		Expiring Net Rentable Square Feet		Expiring Base Rent		Percentage of Expiring Base Rent
2011 (Six months ending December 31, 2011)		555	$	1,806		69	$	979		20		624	$	2,785		1.21	%
2012		824		12,385		186		2,585		38		1,010		14,970		6.48	%
2013		1,605		8,599		641		5,247		41		2,246		13,846		5.99	%
2014		697		4,247		147		1,976		26		844		6,223		2.69	%
2015		1,396		7,919		389		4,053		29		1,785		11,972		5.18	%
2016		818		14,398		746		11,638		20		1,564		26,036		11.27	%
2017		267		3,832		1,373		12,082		21		1,640		15,914		6.89	%
2018		743		8,518		2,784		14,875		18		3,527		23,393		10.12	%
2019		1,697		13,239		3,725		18,337		15		5,422		31,576		13.67	%
2020		601		12,973		16		162		8		617		13,135		5.68	%
2021		2,562		26,341		1,353		9,766		10		3,915		36,107		15.63	%
Thereafter		1,500		24,855		694		10,233		15		2,194		35,088		15.19	%

Total		13,265	$	139,112		12,123	$	91,933		261		25,388	$	231,045		100.00	%

Weighted Average Expiration (years)				7.93				7.44								7.74

⁽¹⁾	Expiring Net Rentable Square Feet for Unconsolidated Properties is at 100%. Expiring Base Rent for Unconsolidated Properties is at our pro rata share of effective ownership. Does not include our investment in CBRE Strategic Partners Asia which is not material.

Property Portfolio Size

Our portfolio size at the end of each quarter since commencement of our initial public offering through June 30, 2011 is as follows (Net Rentable Square Feet and Approximate Total Acquisition Cost in thousands):


	Consolidated Properties						Unconsolidated Properties⁽¹⁾						Consolidated & Unconsolidated Properties⁽¹⁾
Cumulative Property Portfolio as of:	Properties		Net Rentable Square Feet		Approximate Total Acquisition Cost		Properties		Net Rentable Square Feet		Approximate Total Acquisition Cost		Properties		Net Rentable Square Feet		Approximate Total Acquisition Cost
9/30/2006		9		878	$	86,644		—		—	$	—		9		878	$	86,644
12/31/2006		9		878		86,644		—		—		—		9		878		86,644
3/31/2007		9		878		86,644		—		—		—		9		878		86,644
6/30/2007		10		928		110,491		—		—		—		10		928		110,491
9/30/2007		42		5,439		348,456		—		—		—		42		5,439		348,456
12/31/2007		44		5,576		353,594		—		—		—		44		5,576		353,594
3/31/2008		47		6,257		426,856		—		—		—		47		6,257		426,856
6/30/2008		47		6,257		426,856		1		605		35,636		48		6,862		462,492
9/30/2008		49		6,483		486,777		6		3,307		193,773		55		9,790		680,550
12/31/2008		52		6,771		582,682		8		5,649		273,205		60		12,420		855,887
3/31/2009		52		6,771		582,717		8		5,649		273,130		60		12,420		855,847
6/30/2009		53		7,106		598,103		11		5,976		305,308		64		13,082		903,411
9/30/2009		57		7,805		719,822		11		5,976		305,202		68		13,781		1,025,024
12/31/2009		60		8,630		791,314		13		6,904		356,158		73		15,534		1,147,472
3/31/2010		58		8,407		748,835		18		7,392		418,818		76		15,799		1,167,653
6/30/2010		62		9,086		916,210		22		8,633		471,615		84		17,719		1,387,825
9/30/2010		63		9,295		983,810		22		8,633		471,615		85		17,928		1,455,425
12/31/2010		73		12,800		1,308,560		30		9,901		629,268		103		22,701		1,937,828
3/31/2011		73		12,800		1,308,560		43		11,950		903,508		116		24,750		2,212,068
6/30/2011		75		14,614		1,657,966		43		12,356		917,566		118		26,970		2,575,532

⁽¹⁾	Net Rentable Square Feet for unconsolidated properties is at 100%. Approximate Total Acquisition Cost is at our pro rata share of effective ownership and does not include our investment in CBRE Strategic Partners Asia.

Rental Operations

Our reportable segments consist of three types of commercial real estate properties for which our management internally evaluates operating performance and financial results: the Domestic Industrial Properties, Domestic Office Properties and International Office/Retail Properties. All periods presented have been revised to report our segment results under our new reportable segment structure. We evaluate the performance of our segments based on net operating income, defined as: rental income and tenant reimbursements less property and related expenses (operating and maintenance, management fees and real estate taxes) and excludes other non-property income and expenses, interest expense, depreciation and amortization, and our company-level general and administrative expenses. The following tables compare the net operating income for the three and six months ended June 30, 2011 and 2010 (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Domestic Industrial Properties
Revenues:
Rental	$	7,182		$	5,487		$	14,110		$	11,300
Tenant Reimbursements		1,678			1,295			3,342			2,553

Total Revenues		8,860			6,782			17,452			13,853

Property and Related Expenses:
Operating and Maintenance		495			395			943			733
General and Administrative		216			116			337			162
Property Management Fee to Related Party		53			77			136			138
Property Taxes		1,583			1,455			3,211			2,886

Total Expenses		2,347			2,043			4,627			3,919

Net Operating Income		6,513			4,739			12,825			9,934

Domestic Office Properties
Revenues:
Rental		20,886			7,612			37,052			14,861
Tenant Reimbursements		5,662			1,467			9,533			3,046

Total Revenues		26,548			9,079			46,585			17,907

Property and Related Expenses:
Operating and Maintenance		3,490			957			6,216			2,114
General and Administrative		166			84			296			171
Property Management Fee to Related Party		47			27			303			60
Property Taxes		3,076			1,096			5,523			2,286

Total Expenses		6,779			2,164			12,338			4,631

Net Operating Income		19,769			6,915			34,247			13,276

International Office/Retail Properties
Revenues:
Rental		1,537			1,535			3,135			3,475
Tenant Reimbursements		92			55			135			136

Total Revenues		1,629			1,590			3,270			3,611

Property and Related Expenses:
Operating and Maintenance		119			59			358			139
General and Administrative		(78	)		86			75			121
Property Management Fee to Related Party		75			72			146			142

Total Expenses		116			217			579			402

Net Operating Income		1,513			1,373			2,691			3,209

Reconciliation to Consolidated Net Loss
Total Segment Net Operating Income		27,795			13,027			49,763			26,419
Interest Expense		9,385			3,238			15,395			6,333
General and Administrative		1,071			1,553			2,213			2,224
Investment Management Fee to Related Party		5,235			2,687			9,493			5,118
Acquisition Expenses		6,852			4,841			11,493			5,219
Depreciation and Amortization		14,972			6,717			27,245			13,960

		(9,720	)		(6,009	)		(16,076	)		(6,435	)


	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Other Income and Expenses
Interest and Other Income		435			91			811			689
Net Settlement Payments on Interest Rate Swaps		(180	)		(230	)		(354	)		(444	)
(Loss) Gain on Interest Rate Swaps		(108	)		(115	)		145			(503	)
Loss on Note Payable at Fair Value		(8	)		(5	)		(34	)		(78	)
Loss on Early Extinguishment of Debt		0			0			0			(73	)

Loss from Continuing Operations Before Provision for Income Taxes and Equity in Income of Unconsolidated Entities		(9,581	)		(6,268	)		(15,508	)		(6,844	)

Provision for Income Taxes		(230	)		(70	)		(300	)		(85	)
Equity in Income of Unconsolidated Entities		341			2,109			3,551			2,846

Net Loss from Continuing Operations		(9,470	)		(4,229	)		(12,257	)		(4,083	)

Discontinued Operations
Income from Discontinued Operations		220			0			395			0
Realized Loss from Sale		(126	)		0			(126	)		0

Income From Discontinued Operations		94			0			269			0

Net Loss		(9,376	)		(4,229	)		(11,988	)		(4,083	)

Net Loss Attributable to Non-Controlling Operating Partnership Units		13			8			16			7

Net Loss Income Attributable to CB Richard Ellis Realty Trust Shareholders	$	(9,363	)	$	(4,221	)	$	(11,972	)	$	(4,076	)

⁽¹⁾

Total Segment Net Operating Income is a Non-GAAP financial measure which may be useful as a supplemental measure for evaluating the relationship of each reporting segment to the combined total. This measure should not be viewed as an alternative measure of operating performance to our U.S. GAAP presentations provided. Segment “Net Operating Income” is defined as operating revenues (rental income, tenant reimbursements and other property income) less property and related expenses (property expenses, including real estate taxes) before depreciation and amortization expense. The Net Operating Income segment information presented consists of the same Net Operating Income segment information disclosed in Note 10 to our consolidated financial statements in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2011.

Tax Basis and Real Estate Tax

The following table provides information regarding our tax basis and real estate taxes at each of our consolidated properties as of June 30, 2011:


Location	Property	Original Income Tax Basis		2011 Real Estate Annual Taxes
San Diego, CA	REMEC Corporate Campus	$	26,667,000	$	316,000
Boston, MA	300 Constitution Drive		19,805,000		306,000
Atlanta, GA	Deerfield Commons I		19,572,000		291,000
Atlanta, GA	Deerfield Commons II		2,262,000		52,000
Dallas, TX	505 Century		6,095,000		102,000
Dallas, TX	631 International		5,407,000		95,000
Dallas, TX	660 North Dorothy		6,836,000		99,000
Chicago, IL	Bolingbrook Point III		18,170,000		218,000
Spartanburg, SC	Cherokee Corporate Park		3,775,000		38,000
Spartanburg, SC	Community Cash Complex 1-5		7,987,000		147,000
Spartanburg, SC	Fairforest Building 1-4		19,753,000		363,000
Spartanburg, SC	Fairforest Building 5		16,968,000		267,000
Spartanburg, SC	Fairforest Building 6⁽⁴⁾		7,469,000		163,000
Spartanburg, SC	Fairforest Building 7		5,626,000		123,000
Spartanburg, SC	Greenville/Spartanburg Industrial Park		3,388,000		70,000
Spartanburg, SC	Highway 290 Commerce Park Buildings		20,083,000		323,000
Spartanburg, SC	HJ Park Building 1		4,216,000		107,000
Charleston, SC	Jedburg Commerce Park		41,991,000		634,000
Charlotte, NC	Kings Mountain I		5,497,000		35,000
Charlotte, NC	Kings Mountain II		11,311,000		55,000
Charleston, SC	Mount Holly Building		6,208,000		54,000
Charleston, SC	North Rhett I		10,302,000		140,000
Charleston, SC	North Rhett II		7,073,000		67,000
Charleston, SC	North Rhett III⁽⁴⁾		4,812,000		55,000
Charleston, SC	North Rhett IV		17,060,000		226,000
Charleston, SC	Orangeburg Park Building		5,474,000		128,000
Spartanburg, SC	Orchard Business Park 2		761,000		14,000
Winston-Salem, NC	Union Cross Building I		6,585,000		179,000
Winston-Salem, NC	Union Cross Building II		17,216,000		173,000
Dallas, TX	Lakeside Office Center		17,994,000		277,000
Charlotte, NC	Kings Mountain III		25,728,000		73,000
Houston, TX	Enclave on the Lake		37,827,000		577,000
Washington, DC	Avion Midrise III		21,111,000		217,000
Washington, DC	Avion Midrise IV		21,112,000		217,000
Minneapolis, MN	13201 Wilfred Lane		15,340,000		530,000
East Bay, CA	3011, 3055 & 3077 Comcast Place		49,000,000		775,000
Boston, MA	140 Depot Street		18,950,000		254,000
Orlando, FL	12650 Ingenuity Drive		25,350,000		349,000
Minneapolis, MN	Crest Ridge Corporate Center I		28,419,000		285,000
Jacksonville, FL	West Point Trade Center		29,000,000		483,000
East Bay, CA	5160 Hacienda Dr		38,500,000		464,000
San Diego, CA	10450 Pacific Center Ct		32,750,000		315,000
Northern NJ	225 Summit Ave		40,600,000		457,000
Boston, MA	One Wayside Road		55,525,000		544,000
Northern NJ	100 Tice Blvd.		67,600,000		609,000
Chicago, IL	Ten Parkway North		25,000,000		140,000
Washington, DC	Pacific Corporate Park		144,500,000		1,675,000
Northern NJ	100 Kimball Drive		60,250,000		777,000
Dallas, TX	4701 Gold Spike Drive		20,300,000		315,000
Cincinnati, OH	1985 International Way		14,800,000		130,000
Columbus, OH	Rickenbacker II		8,600,000		56,000
Columbus, OH	Rickenbacker III		13,400,000		90,000
Salt Lake City, UT	Summit Distribution Center		13,400,000		147,000
Jacksonville, FL	3660 Deerpark Boulevard		15,300,000		170,000
Phoenix, AZ	Tolleson Commerce Park II		9,200,000		235,000
New York City Metro, NJ	70 Hudson		155,000,000		1,275,000
New York City Metro, NJ	90 Hudson		155,000,000		1,364,000
Dallas, TX	Millers Ferry Road		40,784,000		156,000
Coventry, UK	602 Central Boulevard		23,847,000		N/A
Reading, UK	Thames Valley Five		29,572,000		N/A
Wakefield, UK	Albion Mills		22,098,000		N/A
Peterborough, UK	Maskew Retail Park		53,740,000		N/A

Total		$	1,657,966,000	$	17,796,000

Recent Developments

We previously disclosed that, in connection with the acquisition of the 70 & 90 Hudson properties on April 11, 2011, we assumed approximately $238,419,000 in two existing mortgage loans. On July 14, 2011, we and Teachers Insurance and Annuity Association of America, or the Lender, agreed to modify the $117,562,000 existing mortgage loan assumed by us in connection with the acquisition of the 90 Hudson, or the Assumed Loan. The Assumed Loan was modified to extend its maturity by three years, from May 1, 2016 to May 1, 2019. The Assumed Loan’s 5.66% annual interest rate was unchanged but is subject to a new 30 year amortization schedule. We pre-paid approximately $8,600,000 of the Assumed Loan’s balance (with no pre-payment penalty) in connection with the modification, resulting in a balance of $108,500,000. A $167,000 fee was paid to CBRE Capital Markets, an affiliate of the Investment Advisor, in connection with modification of the Assumed Loan. The agreements pertaining to the modification of the Assumed Loan contain customary provisions, including representations, warranties, covenants and indemnifications.

On August 8, 2011, the Duke joint venture closed on two loans with Woodman of the World Life Insurance Society totaling $14,425,000. The loans are secured by the Fairfield Distribution Center IX, $4,675,000, and West Lake at Conway, $9,750,000, properties. Net proceeds from the financing totaling approximately $13,818,000 was used to pay down the Wells Fargo unsecured term loan. Upon closing the Duke joint venture paid down approximately $52,818,000 of the $275,000,000 Wells Fargo unsecured term reducing the outstanding balance as of August 8, 2011 to approximately $222,182,000. Our 80% share of the outstanding balance was $177,746,000.

On August 12, 2011, we sold the Rickenbacker II and Rickenbacker III properties located in Groveport, OH, which were previously held for sale, to an unrelated third-party. The aggregate sales proceeds after customary closing costs was approximately $22,432,000.

On August 16, 2011, the Duke joint venture closed on three loans with Wells Fargo Bank, N.A., or Wells Fargo, totaling $43,400,000. The three loans are individually secured by the Easton III, Point West I and Atrium I properties. Upon closing the $6,900,000 loan secured by the Easton III property, the Duke joint venture entered into an interest rate swap agreement with Wells Fargo to effectively fix the annual interest rate on this loan at 4.95% for its entire term until this loan’s scheduled maturity on January 31, 2019. Upon closing the $11,800,000 loan secured by the Point West I property, the Duke joint venture entered into an interest rate swap agreement with Wells Fargo to effectively fix the annual interest rate on this loan to 3.41% for its entire term until this loan’s scheduled maturity on December 6, 2016. Upon closing the $24,700,000 loan secured by the Atrium I property, the Duke joint venture entered into an interest rate swap agreement with Wells Fargo to effectively fix the annual interest rate on this loan to 3.775% for its entire term until this loan’s scheduled maturity on May 31, 2018. Principal and interest payments are due monthly on the three loans. The Duke joint venture incurred financing costs of approximately $700,000 in conjunction with obtaining the three loans. Upon closing, the Duke joint venture paid down approximately $42,700,000 of the $222,182,000 remaining balance of the Wells Fargo unsecured term loan reducing the outstanding balance as of August 16, 2011 to approximately $179,482,000. Our 80% share of the outstanding balance is $143,586,000.

The Investment Advisor

The table below updates the ages of certain of the officers of our Investment Advisor included under the section “The Investment Advisor,” which begins on page 83 of our prospectus.

The officers of the Investment Advisor are as follows:


Name	Age	Position
Jack A. Cuneo	63	President and Chief Executive Officer
Laurie E. Romanak	51	Managing Director
Douglas J. Herzbrun	56	Managing Director/Global Head of Research
Philip L. Kianka	54	Director of Operations
Christopher B. Allen	44	Director of Finance
Nickolai S. Dolya	34	Director of Capital Markets
Charles W. Hessel	40	Director of Investments
Hugh S. O’Beirne	40	Senior Counsel
Brian D. Welcker	62	Director of Asset Management
G. Eric Fraser	61	Director of Accounting
Dennis Keyes	51	Director of Asset Management
Gregory L. Vinson	39	Senior Associate

The disclosure below updates the information under the following sections of our prospectus: “Summary,” “The Investment Advisor—The Sub-Advisory Agreement,” “Certain Relationships of the Dealer Manager and the Sub-Advisor,” as well as the definition of “Sub-Advisor” first defined on page 2 of our prospectus and used throughout our prospectus (all such references to “Sub-Advisor” shall mean “CFG VIII, Inc.”).

On July 7, 2011, our Investment Advisor and CNL Fund Management Company agreed to terminate the existing sub-advisory agreement and our Investment Advisor entered into a new sub-advisory agreement with CFG VIII, Inc., a wholly-owned subsidiary of CNL Financial Group, LLC. The terms of the new sub-advisory agreement provide for a change in the scope of marketing related services to be provided as well as a change in the CNL affiliated entity. CFG VIII, Inc. will also hold the interest previously held by CNL Fund Management Company in our Investment Advisor and CBRE REIT Holdings LLC.

Distribution Policy

This section contains certain information that supplements and updates the information under the section “Distribution Policy,” which begins on page 39 of our prospectus.

The following table presents total distributions declared and paid and distributions per share:


2011 Quarters	First		Second
Total distributions declared and paid	$	25,306,000	$	27,125,000
Distributions per share	$	0.15	$	0.15
Amount of distributions per share funded by cash flows provided by operating entities	$	0.0758	$	0.0707
Amount of distributions per share funded by uninvested proceeds from financings of our properties	$	0.0742	$	0.0793


2010 Quarters	First		Second		Third		Fourth
Total distributions declared and paid	$	16,841,000	$	19,266,000	$	21,623,000	$	24,053,000
Distributions per share	$	0.15	$	0.15	$	0.15	$	0.15
Amount of distributions per share funded by cash flows provided by operating entities	$	0.1212	$	0.0540	$	0.0826	$	0.0444
Amount of distributions per share funded by uninvested proceeds from financings of our properties	$	0.0288	$	0.0960	$	0.0674	$	0.1056

Our board of trustees has approved a quarterly distribution to shareholders of $0.15 per common share for the third quarter of 2011. The distribution will be calculated on a daily basis and paid on October 14, 2011 to shareholders of record during the period from July 1, 2011 through and including September 30, 2011.

For the quarter ended June 30, 2011, distributions were funded 47.10% by cash flows provided by operating activities and 52.90% from uninvested proceeds from financings of our properties. In addition, distributions totaling $11,806,000 were reinvested in our common shares pursuant to our dividend reinvestment plan during the quarter ended June 30, 2011.

For the quarter ended March 31, 2011, distributions were funded 50.51% by cash flows provided by operating activities and 49.49% from uninvested proceeds from financings of our properties. In addition, distributions totaling $10,861,000 were reinvested in our common shares pursuant to our dividend reinvestment plan during the quarter ended March 31, 2011.

Our 2010 distributions were funded 48.38% by cash flows provided by operating activities and 51.62% from uninvested proceeds from financings of our properties. In addition, 2010 distributions totaling $35,317,000 were reinvested in our common shares pursuant to our dividend reinvestment plan during 2010.

Total distributions declared and paid for the period from inception (July 1, 2004) through June 30, 2011 were $227,476,000 and total Funds from Operations for the period from inception (July 1, 2004) through June 30, 2011 were $126,851,000. For a discussion of our

supplemental financial measures, see “—Non-GAAP Supplemental Financial Measure: Funds from Operations.”

Summary Selected Financial Data

This section supersedes the information under the section “Summary Selected Financial Data,” which begins on page 42 of our prospectus.

Summary Selected Financial and Operating Data

The following table sets forth summary selected financial and operating data on a consolidated basis for our company. You should read the following summary selected financial data in conjunction with our consolidated historical financial statements and the related notes and with “Management Discussion and Analysis of Financial Conditions and Results of Operations,” which are included in our incorporated documents.

The summary historical consolidated balance sheet information as of June 30, 2011 and 2010, December 31, 2010, 2009, 2008, 2007 and 2006 as well as the summary historical consolidated statement of operations information for the six months ended June 30, 2011 and June 30, 2010 and for the years ended December 31, 2010, 2009, 2008, 2007 and 2006 have been derived from our historical consolidated financial statements.

Our unaudited summary selected pro forma consolidated financial data is presented for the six months ended June 30, 2011 and for the year ended December 31, 2010. Our unaudited summary selected pro forma consolidated statements of operations data for the six months ended June 30, 2011 and for the year ended December 31, 2010 are based on our historical consolidated statements of operations and gives effect to the acquisitions of the following properties as if they were acquired on January 1, 2010, (i) the 3900 North Paramount Parkway, 3900 South Paramount Parkway and 1400 Perimeter Park Drive properties, a Duke joint venture interest which was acquired on March 31, 2010, (ii) the 5160 Hacienda Drive property which was acquired on April 8, 2010, (iii) the 10450 Pacific Court Center property which was acquired on May 7, 2010, (iv) the Amber Park and Brackmills properties, UK JV interests which were acquired on June 10, 2010, (v) the Düren and Schönberg properties, European JV interests which were acquired on June 10, 2010, (vi) the 225 Summit Avenue property which was acquired on June 21, 2010, (vii) the One Wayside Road property which was acquired on June 24, 2010, (viii) the 100 Tice Blvd. property which was acquired on September 28, 2010, (ix) the National Industrial Portfolio which was acquired on October 27, 2010, (x) the Duke joint venture Office Portfolio tranche I which was acquired on December 21, 2010, (xi) the Duke joint venture Office Portfolio tranches II and III which were acquired on March 24, 2011 and the 70 & 90 Hudson properties which were acquired April 11, 2011.

The unaudited pro forma consolidated statements of operations do not purport to represent our results of operations that would actually have occurred assuming the acquisitions of 3900 North Paramount Parkway, 3900 South Paramount Parkway, 1400 Perimeter Park Drive, 5160 Hacienda Drive, 10450 Pacific Court Center, Amber Park, Brackmills, Düren, Schönberg, 225 Summit Avenue, One Wayside Road, 100 Tice Blvd., the National Industrial Portfolio, the Duke joint venture Office Portfolio tranches I, II and III and the 70 & 90 Hudson properties had occurred on January 1, 2010, nor do they purport to project our results of operations as of any future date or for any future period.

Our unaudited pro-forma financial information is not necessarily indicative of what our results of operations would have been for the periods indicated, nor does it purport to represent our future results of operations. The unaudited pro forma condensed consolidated balance sheet as of June 30, 2011 has not been included in the presentation of these unaudited pro forma financial statements due to the fact that all properties acquired and investments in unconsolidated joint venture investments are already reflected in the June 30, 2011 consolidated balance sheet included in our Quarterly Report on Form 10-Q, filed with the SEC on August 15, 2011.


	Pro Forma Consolidated			Historical Consolidated						Pro Forma Consolidated			Historical Consolidated
	Six Months Ended June 30,			Six Months Ended June 30,						Year Ended December 31,			Year Ended December 31,
	2011			2011			2010			2010			2010			2009			2008			2007			2006
										(in thousands, except share data)
Statement of Operations Data:
Revenues
Rental	$	61,305		$	54,297		$	29,636		$	112,441		$	69,373		$	47,023		$	33,396		$	14,028		$	6,630
Tenant Reimbursements		14,371			13,010			5,735			20,448			14,166			9,301			6,753			2,633			1,830

Total Revenue		75,676			67,307			35,371			132,889			83,539			56,324			40,149			16,661			8,460


Expenses
Operating and Maintenance		8,399			7,517			2,986			13,461			8,618			4,974			3,248			1,057			860
Property Taxes		9,463			8,734			5,172			15,537			10,965			7,624			5,479			1,778			1,103
Interest		19,189			15,395			6,333			31,346			14,881			11,378			10,323			5,049			1,784
General and Administrative Expense		2,921			2,921			2,678			5,650			5,526			4,246			3,320			1,853			851
Property Management Fee to Related Party		696			585			340			2,107			948			656			491			160			41
Investment Management Fee to Related Party		10,371			9,493			5,118			15,903			11,595			7,803			3,964			1,547			739
Class C Fee to Related Party		—			—			—			—			—			—			—			—			145
Acquisition Expenses		5,530			11,493			5,219			23,494			17,531			5,832			—			—			—
Depreciation and Amortization		31,458			27,245			13,960			51,937			32,125			25,093			17,171			8,050			4,618
Loss on Impairment		—			—			—			—			—			9,160			—			—			—

Total Expenses		88,027			83,383			41,806			159,435			102,189			76,766			43,996			19,494			10,141


Other Income and Expenses
Interest and Other Income		811			811			689			1,260			1,260			344			2,039			2,855			255
Net Settlement (Payments) Receipts on Interest Rate Swaps		(354)			(354	)		(444	)		(1,096	)		(1,096	)		(660	)		65			—			—
Gain (Loss) on Interest Rate Swaps and Cap		145			145			(503	)		23			23			89			(1,496	)		—			—
(Loss) Gain on Note Payable at Fair Value		(34)			(34	)		(78	)		(118	)		(118	)		(807	)		1,168			—			—
Loss on Early Extinguishment of Debt		—			—			(73	)		(72	)		(72	)		—			—			—			—
Loss on Transfer of Real Estate Held for Sale to Continuing Operations		—			—			—			—			—			—			(3,451	)		—			—

Total Other Income and (Expenses)		568			568			(409	)		(3	)		(3	)		(1,034	)		(1,675	)		2,855			255

(Loss) Income Before (Provision) Benefit for Income Taxes and Equity in Income (Loss) of Unconsolidated Entities		(11,783)			(15,508	)		(6,844	)		(26,549	)		(18,653	)		(21,476	)		(5,522	)		22			(1,426	)
(Provision) Benefit for Income Taxes		(300)			(300	)		(85	)		(296	)		(296	)		(169	)		82			(279	)		—
Equity in Income (Loss) of Unconsolidated Entities		1,921			3,551			2,846			6,007			8,838			2,743			(1,242	)		(150	)		—

Net Loss From Continuing Operations		(10,162	)		(12,257	)		(4,083	)		(20,838	)		(10,111	)		(18,902	)		(6,682	)		(407	)		(1,426	)

Discontinued Operations
Income (Loss) from Discontinued Operations					395			—						(507	)		—			—			—			—
Realized Loss from Sale					(126	)		—						—			—			—			—			—

Income (Loss) from Discontinued Operations					269			—						(507	)		—			—			—			—

Net Loss					(11,988	)		(4,083	)					(10,618	)		(18,902	)		(6,682	)		(407	)		(1,426	)
Net Loss (Income) Attributable to Non-Controlling Operating Partnership Units		14			16			7			38			18			54			26			4			(1,058	)

Net Loss Attributable to CB Richard Ellis Realty Trust Shareholders	$	(10,148	)	$	(11,972	)	$	(4,076	)	$	(20,800	)	$	(10,600	)	$	(18,848	)	$	(6,656	)	$	(403	)	$	(2,484	)


Per Share Data:
Basic and Diluted Net Loss Per Share from Continuing Operations	$	(0.06	)	$	(0.07	)	$	(0.03	)	$	(0.15	)	$	(0.08	)	$	(0.23	)	$	(0.14	)	$	(0.02	)	$	(0.35	)
Basic and Diluted Net Loss Per Share from Discontinued Operations	$			$	—		$	—		$			$	—		$	—		$	—		$	—		$	—

Weighted Average Common Shares Outstanding—Basic and Diluted		174,813,725			174,813,725			120,399,165			136,456,565			136,456,565			81,367,593			46,089,680			18,545,418			7,010,722
Dividends Declared Per Share	$	0.30		$	0.30		$	0.30		$	0.60		$	0.60		$	0.60		$	0.59		$	0.54		$	0.50


	Historical Consolidated				Historical Consolidated
	June 30,				December 31,
	2011		2010		2010		2009		2008		2007		2006
					(in thousands)
Balance Sheet Data:
Investments in Real Estate, Less Accumulated Depreciation and Amortization		$1,349,335		$ 732,992	$	1,055,975	$	639,573	$	484,827	$	309,805	$	70,650
Investments in Unconsolidated Entities		462,414		316,485		410,062		214,097		131,703		101		—
Real Estate and Other Assets Held for Sale		22,085		—		22,056		—		—		—		—
Total Assets		2,168,912		1,324,842		1,716,720		1,059,019		709,920		435,751		97,807
Notes Payable		667,965		225,673		365,592		212,425		177,161		116,876		34,975
Loan Payable		25,000		15,000		60,000		—		—		45,000		—
Liabilities Related to Real Estate and other Assets Held for Sale		255		—		441		—		—		—		—
Total Liabilities		776,535		291,713		491,954		256,556		220,249		189,224		44,834
Non-Controlling Interest		2,464		2,464		2,464		2,464		2,464		2,464		2,464
Shareholders’ Equity		1,389,913		1,030,665		1,222,302		799,999		487,207		244,063		50,509
Total Liabilities, Shareholders’ Equity and Non-Controlling Interest		2,168,912		1,324,842		1,716,720		1,059,019		709,920		435,751		97,807

Non-GAAP Supplemental Financial Measure: Funds from Operations

Historical cost accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, many industry analysts and investors consider presentations of operating results for REITs that use historical cost accounting to be insufficient by themselves. Consequently, the National Association of Real Estate Investment Trusts, or NAREIT, created Funds from Operations, or FFO, as a supplemental measure of REIT operating performance.

FFO is a non-GAAP measure that is commonly used in the real estate industry. The most directly comparable GAAP measure to FFO is net income. FFO, as we define it, is presented as a supplemental financial measure. Management believes that FFO is a useful supplemental measure of REIT performance. FFO does not present, nor do we intend for it to present, a complete picture of our financial condition and/or operating performance. We believe that net income, as computed under GAAP, appropriately remains the primary measure of our performance and that FFO, when considered in conjunction with net income, improves the investing public’s understanding of the operating results of REITs and makes comparisons of REIT operating results more meaningful.

We compute FFO in accordance with standards established by NAREIT. Modifications to the NAREIT calculation of FFO are common among REITs, as companies seek to provide financial measures that meaningfully reflect their business and provide greater transparency to the investing public as to how our management team considers our results of operations. As a result, our FFO may not be comparable to FFO as reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than we do. The revised NAREIT White Paper on FFO defines FFO as net income or loss computed in accordance with GAAP, excluding extraordinary items, as defined by GAAP, and gains and losses from sales of depreciable operating property, plus real estate related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets), and after adjustment for unconsolidated partnerships and joint ventures.

Management believes that NAREIT’s definition of FFO reflects the fact that real estate, as an asset class, generally appreciates over time, and that depreciation charges required by GAAP do not always reflect the underlying economic realities. Likewise, the exclusion from NAREIT’s definition of FFO of gains and losses from the sales of previously depreciated operating real estate assets, allows investors and analysts to readily identify the operating results of the long-term assets that form the core of a REIT’s activity and assists in comparing those operating results between periods. Thus, FFO provides a performance measure that, when compared year over year, reflects the impact on our operations from trends in occupancy rates, rental rates and operating costs. Management also believes that FFO provides useful information to the investment community about our financial performance when compared to other REITs, since FFO is generally recognized as the industry standard for reporting the operations of REITs.

However, changes in the accounting and reporting rules under GAAP (for acquisition fees and expenses from a capitalization/depreciation model to an expensed-as-incurred model) that have been put into effect since the establishment of NAREIT’s definition of FFO have prompted an increase in the non-cash and non-operating items included in FFO. In addition, we view impairment charges as an item which is typically adjusted when assessing operating performance. Furthermore, publicly registered, non-traded REITs typically have a significant amount of acquisition activity during their initial years of investment and operation and therefore we believe require

additional adjustments to FFO in evaluating performance. As a result, in addition to presenting FFO in accordance with the NAREIT definition, we also disclose FFO, as adjusted, which excludes the effects of acquisition costs and non-cash impairment charges.

FFO, as adjusted, is a useful measure to management’s decision-making process. As discussed below, period to period fluctuations in the excluded items can be driven by short-term factors that are not particularly relevant to our long-term investment decisions, long-

term capital structures or long-term tax planning and tax structuring decisions. We believe that adjusting FFO to exclude these acquisition costs and impairment charges more appropriately presents our results of operations on a comparative basis. The items that we exclude from net income are subject to significant fluctuations from period to period that cause both positive and negative effects on our results of operations, often in inconsistent and unpredictable directions. For example, our acquisition costs are primarily the result of the volume of our acquisitions completed during each period, and therefore we believe such acquisition costs are not reflective of our operating results during each period. Similarly, unrealized gains or non-cash impairment charges that we have recognized during a given period are based primarily upon changes in the estimated fair market value of certain of our investments due to deterioration in market conditions and do not necessarily reflect the operating performance of these properties during the corresponding period.

We believe that FFO, as adjusted, is useful to investors as a supplemental measure of operating performance. We believe that adjusting FFO to exclude acquisition costs provides investors a view of the performance of our portfolio over time, including after we cease to acquire properties on a frequent and regular basis and allows for a comparison of the performance of our portfolio with other REITs that are not currently engaging in acquisitions. In addition, as many other non-traded REITs adjust FFO to exclude acquisition costs and impairment charges, we believe that our calculation and reporting of FFO, as adjusted, will assist investors and analysts in comparing our performance with that of other non-traded REITs. We also believe that FFO, as adjusted, may provide investors with a useful indication of our future performance, particularly after our acquisition stage, and of the sustainability of our current distribution policy. However, because FFO, as adjusted, excludes acquisition costs, which are an important component in an analysis of our historical performance, such supplemental measure should not be construed as a historical performance measure and may not be as useful a measure for estimating the value of our common shares. In addition, the impairment charges that we exclude from FFO, as adjusted, may be realized as a loss in the future upon the ultimate disposition of the related properties or other assets through the form of lower cash proceeds.

Not all REITs calculate FFO and FFO, as adjusted (or an equivalent measure), in the same manner and therefore comparisons with other REITs may not be meaningful. Neither FFO, nor FFO as adjusted, represents cash generated from operating activities in accordance with GAAP and should not be considered as alternatives to (i) net income (determined in accordance with GAAP), as indications of our financial performance, or (ii) to cash flow from operating activities (determined in accordance with GAAP) as measures of our liquidity, nor are they indicative of funds available to fund our cash needs, including our ability to make cash distributions. We believe that to further understand our performance, each of FFO and FFO, as adjusted, should be compared with our reported net income and considered in addition to cash flows in accordance with GAAP, as presented in our Consolidated Financial Statements.

The following table presents our FFO and FFO, as adjusted for the three months ended June 30, 2011, March 31, 2011, December 31, 2011 and September 30, 2010 (in thousands, except per share data):


	Three Months Ended
	June 30, 2011			March 31, 2011			December 31, 2010			September 30, 2010

Reconciliation of net loss to funds from operations:
Net Loss Attributable to CB Richard Ellis Realty Trust Shareholders	$	(9,363	)	$	(2,609	)	$	(5,318	)	$	(1,206	)
Adjustments:
Non-controlling interest		(13	)		(4	)		(9	)		(2	)
Real estate depreciation and amortization		14,972			12,274			10,224			7,941
Realized loss from sale of discontinued operations		126			—			—			—
Net effect of FFO adjustment from unconsolidated entities⁽¹⁾		13,356			7,564			4,451			4,661

FFO	$	19,078		$	17,225		$	9,348		$	11,394
Other Adjustments:
Acquisition expenses/Organization expenses⁽²⁾		6,852			4,654			10,303			2,592
Unrealized gain/impairment loss in unconsolidated entity		192			35			1,277			115

FFO, as adjusted	$	26,122		$	21,902			$20,928		$	14,101

Net loss per share (basic and diluted)	$	(0.05	)	$	(0.02	)	$	(0.03	)	$	(0.01	)
FFO per share (basic and diluted)	$	0.11		$	0.10		$	0.06		$	0.08
FFO, as adjusted, per share (basic and diluted)	$	0.14		$	0.13		$	0.13		$	0.10

⁽¹⁾	Represents our share of the FFO adjustments allowable under the NAREIT definition (primarily depreciation) for each of our unconsolidated entities.

⁽²⁾	In addition to organization and acquisition costs incurred in our consolidated results, this adjustment also includes our portion of acquisition costs incurred within our unconsolidated entities.

Description of Shares

This section contains certain information that supplements the description of our Share Redemption Program following the caption “Description of Shares—Share Redemption Program,” which begins on page 96 of our prospectus.

For the three and six months ended June 30, 2011, we received requests to redeem 1,199,264 and 1,790,615 common shares pursuant to our share redemption program. We redeemed 100% and 100% of the redemption requests for the three and six months ended June 30, 2011, respectively, at an average price per share of $9.00 and $9.06, respectively. We funded share redemptions for the periods noted above from the cumulative proceeds of the sale of our common shares pursuant to our dividend reinvestment plan.

Certain U.S. Federal Income Tax Considerations

The following should be read in conjunction with the section “Risk Factors—U.S. Federal Income Tax Risks,” which begins on page 32 of our prospectus and the section “Certain U.S. Federal Income Tax Consequences,” which begins on page 109 of our prospectus.

As previously disclosed, we submitted a request to the IRS for a closing agreement under which the IRS would grant us relief with respect to payments we made to shareholders under our DRIP and in respect of certain custodial fees we paid on behalf of some of our IRA shareholders, in each case, which payments could be treated as preferential dividends under the rules applicable to REITs, or collectively, the Tax Matters. On July 8, 2011, we and our Investment Advisor entered into a closing agreement with the IRS, pursuant to which (i) the IRS agreed not to challenge our dividends as preferential as a result of the Tax Matters and (ii) our Investment Advisor paid a compliance fee of approximately $135,000 to the IRS. We will not reimburse our Investment Advisor for its payment of the compliance fee. As a result of our entering into the closing agreement with the IRS, we believe that we have fully resolved the Tax Matters.

Experts

This section contains certain information that supplements and updates the information under the section “Experts,” which begins on page 134 of our prospectus.

The consolidated financial statements, and the related financial statement schedule of CB Richard Ellis Realty Trust and subsidiaries, or the Company, incorporated in this prospectus by reference from the Company’s Annual Report on Form 10-K, and the effectiveness of the Company’s internal control over financial reporting have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their reports which are incorporated herein by reference (which reports (1) express an unqualified opinion on the consolidated financial statements and financial statement schedule and include an explanatory paragraph relating to the Company’s adoption of ASC Topic 805, Business Combinations, as of January 1, 2009 and (2) express an unqualified opinion on the effectiveness of internal control over financial reporting). Such consolidated financial statements and related financial statement schedule have been so incorporated in reliance upon the report of such firm given upon their authority as experts in accounting and auditing.

The consolidated financial statements and related schedule of Duke/Hulfish, LLC and subsidiaries as of December 31, 2010 and 2009, and for the years ended December 31, 2010 and 2009 and for the period from April 29, 2008 (inception) through December 31, 2008, the combined statement of revenue in excess of certain expenses of the Duke Office Portfolio Tranche I for the year ended December 31, 2009 and the combined statement of revenue in excess of certain expenses of the Duke Office Portfolio Tranche II and III for the year ended December 31, 2010 have been incorporated by reference herein and in the registration statement in reliance upon the report of KPMG LLP, independent registered public accounting firm, incorporated by reference herein upon the authority of said firm as experts in accounting and auditing.

The combined statement of assets, liabilities and partners’ capital and combined schedule of real estate related investments of CB Richard Ellis Strategic Partners Asia II, L.P. and CB Richard Ellis Strategic Partners Asia II-A, L.P., Cayman Islands exempted limited partnerships, as of December 31, 2008 and the related combined statements of operations, partners’ capital and cash flows for the year then ended, have been incorporated by reference herein in reliance upon the report of KPMG, independent auditors, incorporated by reference herein, and upon the authority of said firm as experts in accounting and auditing.

The historical combined statement of revenues and direct operating expenses of the 70 & 90 Hudson properties for the year ended December 31, 2010, appearing in the Current Report on Form 8-K/A filed with the SEC on April 20, 2011, has been audited by Squar, Milner, Peterson, Miranda & Williamson, LLP, an independent registered public accounting firm, as stated in their report which is incorporated herein by reference, and has been so incorporated in reliance upon the report of such firm given upon their authority as experts in accounting and auditing.

The historical combined statement of revenues and direct operating expenses for the year ended December 31, 2009, appearing in the Current Report on form 8-K/A filled with the SEC on November 19, 2010, has been audited by Squar, Milner, Peterson, Miranda & Williamson, LLP, an independent registered public accounting firm, as stated in their report which is incorporated herein by reference, and has been so incorporated in reliance upon the report of such firm given upon their authority as experts in accounting and auditing.

Incorporation of Certain Information by Reference

This Supplement No. 7 to our prospectus dated May 2, 2011 “incorporates by reference” certain information that we file with the SEC, which means that we can disclose important information to you by referring you to those documents that are considered part of this prospectus. The following documents filed with the SEC are incorporated by reference into this Supplement No. 7:

Our Annual Report on Form 10-K for the year ended December 31, 2010, filed on March 30, 2011;

Our Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, filed on May 16, 2011;

Our Quarterly Report on Form 10-Q for the quarter ended June 30, 2011, filed August 15, 2011;

Our Proxy Statement on Schedule 14A for our 2011 Annual Meeting of Shareholders, filed on April 20, 2011;

Our Current Report on Form 8-K, filed on November 19, 2010;

Our Current Report on Form 8-K/A, filed on February 11, 2011;

Our Current Report on Form 8-K/A, filed on March 29, 2011;

Our Current Report on From 8-K/A filed on April 20, 2011; and

Our Current Report on Form 8-K filed June 22, 2011.

You can obtain any of the documents incorporated by reference in this Supplement No. 7 from us, or from the SEC through the SEC’s website at the addresswww.sec.gov. We will furnish without charge to you, on written or oral request, a copy of any or all of the documents incorporated by reference, other than exhibits to such documents. You should direct any written requests for documents to CB Richard Ellis Realty Trust, 47 Hulfish Street, Suite 210, Princeton, New Jersey 08542, or call (609) 683-4900. Such documents may also be accessed on our website atwww.cbrerealtytrust.com. The information found on, or otherwise accessible through, our website is not incorporated information and does not form a part of this prospectus or any other report or document we file or furnish with the SEC.

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS


	Page

NATIONAL INDUSTRIAL PORTFOLIO
Independent Auditors’ Report		*
Historical Combined Statements of Revenues and Direct Operating Expenses For the Year Ended December 31, 2009 and For the Unaudited Nine-Month Period Ended September 30, 2010		*
Notes to the Historical Combined Statements of Revenues and Direct Operating Expenses For the Year Ended December 31, 2009 and For the Unaudited Nine-Month Period Ended September 30, 2010		*

70 & 90 HUDSON
Report of Independent Registered Public Accounting Firm		*
Historical Combined Statement of Revenues and Direct Operating Expenses For the Year Ended December 31, 2010		*
Notes to Historical Combined Statement of Revenues and Direct Operating Expenses For the Year Ended December 31, 2010		*

DUKE OFFICE PORTFOLIO TRANCHE I
Report of Independent Registered Public Accounting Firm		*
Combined Statements of Revenue in Excess of Certain Expenses for the Year Ended December 31, 2009 and for the Unaudited Nine-Months Ended September 30, 2010		*
Notes to Combined Statements of Revenue in Excess of Certain Expenses for the Year Ended December 31, 2009 and for the Unaudited Nine-Months Ended September 30, 2010		*

DUKE OFFICE PORTFOLIO TRANCHE II AND TRANCHE III
Report of Independent Registered Public Accounting Firm		*
Combined Statement of Revenue in Excess of Certain Expenses for the Year Ended December 31, 2010		*
Notes to Combined Statement of Revenue in Excess of Certain Expenses Year Ended December 31, 2010		*

PRO FORMA FINANCIAL INFORMATION
Pro Forma Condensed Consolidated Financial Statements (unaudited)		F-2
Pro Forma Condensed Consolidated Statements of Operations For the Six Months Ended June 30, 2011 (unaudited)		F-3
Pro Forma Condensed Consolidated Statements of Operations For the Period Ended December 31, 2010 (unaudited)		F-4
Notes to Pro Forma Condensed Consolidated Financial Statements (unaudited)		F-5

* See “Incorporation of Certain Information by Reference.”

F-1

Pro Forma Consolidated Financial Statements (unaudited)

The following unaudited pro forma consolidated statements of operations of CB Richard Ellis Realty Trust (the “Company”) including its consolidated subsidiaries, for the six months ended June 30, 2011 and for the year ended December 31, 2010 are based on the historical consolidated statements of operations of CB Richard Ellis Realty Trust and gives effect to the acquisitions of the following properties as if they were acquired on January 1, 2010, (i) the 3900 North Paramount Parkway, 3900 South Paramount Parkway and 1400 Perimeter Park Drive properties (collectively the “Duke North Carolina Portfolio”), a Duke joint venture interest which was acquired on March 31, 2010, (ii) the 5160 Hacienda Drive property which was acquired on April 8, 2010, (iii) the 10450 Pacific Court Center property which was acquired on May 7, 2010, (iv) the Amber Park and Brackmills properties, UK JV interests which were acquired on June 10, 2010, (v) the Düren and Schönberg properties, European JV interests which were acquired on June 10, 2010, (vi) the 225 Summit Avenue property which was acquired on June 21, 2010, (vii) the One Wayside Road property which was acquired on June 24, 2010, (viii) the 100 Tice Blvd. property which was acquired on September 28, 2010, (ix) the National Industrial Portfolio (“NIP”) which was acquired on October 27, 2010, (x) the Duke Office Portfolio Tranche I (“Duke Tranche I”) which was acquired on December 21, 2010, (xi) the Duke Office Portfolio Tranche II and III (“Duke Tranche II and III”) which were acquired on March 24, 2011 and the 70 Hudson St and 90 Hudson St properties, including the finalization of purchase price allocations effected in June 2011, (collectively “70 & 90 Hudson”) which were acquired April 11, 2011.

The unaudited pro forma consolidated statements of operations do not purport to represent our results of operations that would actually have occurred assuming the acquisitions of the Duke North Carolina Portfolio, 5160 Hacienda Drive, 10450 Pacific Court Center, the UK JV interests, the European JV interests, 225 Summit Avenue, One Wayside Road, 100 Tice Blvd., NIP, Duke Tranche I, Duke Tranche II and III and 70 & 90 Hudson had occurred on January 1, 2010, nor do they purport to project our results of operations as of any future date or for any future period.

In management’s opinion, all adjustments necessary to reflect the effects of these transactions have been made. The unaudited pro forma financial information and accompanying notes should be read in conjunction with the Company’s financial statements included on Form 10-K for the year ended December 31, 2010 and on Form 10-Q for the six months ended June 30, 2011.

F-2

CB RICHARD ELLIS REALTY TRUST

Pro Forma Condensed Consolidated Statements of Operations

For the Six Months Ended June 30, 2011 (unaudited)

(In Thousands, Except Share Data)


	CB Richard Ellis Realty Trust Historical			Duke Tranche II/III			70 & 90 Hudson			Consolidated Company Pro Forma
	A			B			C
REVENUES
Rental	$	54,297		$	—		$	7,008		$	61,305
Tenant Reimbursements		13,010			—			1,361			14,371

Total Revenues		67,307			—			8,369			75,676

EXPENSES
Operating and Maintenance		7,517			—			882			8,399
Property Taxes		8,734			—			729			9,463
Interest		15,395			—			3,794			19,189
General and Administrative		2,921			—			—			2,921
Property Management Fees to Related Party		585			—			111			696
Investment Management Fees to Related Party		9,493						878			10,371
Acquisition Expenses		11,493			—			(5,963	)		5,530
Depreciation and Amortization		27,245			—			4,213			31,458

Total Expenses		83,383			—			4,644			88,027

OTHER INCOME AND EXPENSES
Interest and Other Income		811			—			—			811
Net Settlement Payments on Interest Rate Swaps		(354	)		—			—			(354	)
Gain on Interest Rate Swaps and Cap		145			—			—			145
Loss on Note Payable at Fair Value		(34	)		—			—			(34	)

Total Other Income and (Expenses)		568			—			—			568

Loss Before Provision for Income Taxes and Equity in Income (Loss) of Unconsolidated Entities		(15,508	)		—			3,725			(11,783	)
PROVISION FOR INCOME TAXES		(300	)		—			—			(300	)
EQUITY IN INCOME (LOSS) OF UNCONSOLIDATED ENTITIES		3,551			(1,630	)		—			1,921

NET LOSS FROM CONTINUING OPERATIONS		(12,257	)		(1,630	)		3,725			(10,162	)

Net Loss from Continuing Operations Attributable to Non-Controlling Operating Partnership Units		16			2			(5	)		14

Net Loss from Continuing Operations Attributable to CB Richard Ellis Realty Trust Shareholders	$	(12,241	)	$	(1,628	)	$	3,720		$	(10,148	)

Basic and Diluted Net Loss from Continuing Operations per Share	$	(0.07	)							$	(0.06	)
Weighted Average Common Shares Outstanding—Basic and Diluted		174,813,725									174,813,725

F-3

CB RICHARD ELLIS REALTY TRUST

Pro Forma Consolidated Statements of Operations

For the Year Ended December 31, 2010 (unaudited)

(In Thousands, Except Share Data)


	CB Richard Ellis Realty Trust Historical			NIP		Duke Tranche I		Duke Tranche II and III		70 & 90 Hudson		Duke NC Portfolio Pro Forma Adjust- ments			5160 Hacienda Dr. Pro Forma Adjust- ments			10450 Pacific Ctr.Court Pro Forma Adjust- ments			UK JV Pro Forma Adjust- ments			European JV Pro Forma Adjust- ments			225 Summit Ave. Pro Forma Adjust- ments			One Wayside Dr. Pro Forma Adjust- ments			100 Tice Blvd. Pro Forma Adjust- ments			NIP Pro Forma Adjust- ments			Duke Tranche I Pro Forma Adjust- ments			Duke Tranche II and III Pro Forma Adjust- ments			70 & 90 Hudson Pro Forma Adjust- ments			Consoli- dated Company Pro Forma
	AA			BB		CC		DD		EE		FF			GG			HH			II			JJ			KK			LL			MM			NN			OO			PP			QQ
REVENUES
Rental	$	69,373		$	5,720	$	—	$	—	$	26,758	$	—		$	942		$	951		$	—		$	—		$	2,054		$	2,680		$	3,963		$	—		$	—		$	—		$	—		$	112,441
Tenant Reimbursements		14,166			1,256		—		—		3,504		—			144			136			—			—			49			211			981			—			—			—			—			20,448

Total Revenues		83,539			6,976		—		—		30,262		—			1,086			1,087			—			—			2,103			2,891			4,944			—			—			—			—			132,889

EXPENSES
Operating and Maintenance		8,618			364		—		—		3,617		—			22			22			—			—			103			91			624			—			—			—			—			13,461
Property Taxes		10,965			868		—		—		2,536		—			123			126			—			—			208			250			461			—			—			—			—			15,537
Interest		14,881			—		—		—		13,727		—			—			—			—			—			—			838			1,900			—			—			—			—			31,346
General and Administrative		5,526			71		—		—		53		—			—			—			—			—			—			—			—			—			—			—			—			5,650
Property Management Fee to Related Party		948			186		—		—		587		—			18			—			—			—			99			132			137			—			—			—			—			2,107
Investment Management Fee to Related Party		11,595			—		—		—		—		69			94			97			103			104			180			250			450			613			—			—			2,347			15,903
Acquisition Expenses		17,531			—		—		—		—		—			—			—			—			—			—			—			—			—			—			—			5,963			23,494
Depreciation and Amortization		32,125			—		—		—		—		—			132			237			—			—			763			1,113			1,184			1,215			—			—			15,167			51,937

Total Expenses		102,189			1,489		—		—		20,520		69			389			482			103			104			1,353			2,674			4,755			1,828			—			—			23,477			159,435

INTEREST AND OTHER INCOME		1,260			—		—		—		—		—			—			—			—			—			—			—			—			—			—			—			—			1,260
Net Settlement Payments on Interest Rate Swaps		(1,096	)		—		—		—		—		—			—			—			—			—			—			—			—			—			—			—			—			(1,096	)
Gain on Interest Rate Swaps		23			—		—		—		—		—			—			—			—			—			—			—			—			—			—			—			—			23
Loss on Note Payable at Fair Value		(118	)		—		—		—		—		—			—			—			—			—			—			—			—			—			—			—			—			(118	)
Loss on Early Extinguishment of Debt		(72	)		—		—		—		—		—			—			—			—			—			—			—			—			—			—			—			—	��		(72	)

Total Other Income and (Expenses)		(3	)		—		—		—		—		—			—			—			—			—			—			—			—			—			—			—			—			(3	)

(Loss) Income Before Provision for Income Taxes and Equity in (Loss) Income of Unconsolidated Entities		(18,653	)		5,487		—		—		9,742		(69	)		697			605			(103	)		(104	)		750			217			189			(1,828	)		—			—			(23,477	)		(26,549	)
PROVISION FOR INCOME TAXES		(296	)		—		—		—		—		—			—			—			—			—			—			—			—			—			—			—			—			(296	)
EQUITY IN INCOME OF UNCONSOLIDATED ENTITIES		8,838			—		8,591		18,472		—		524			—			—			648			141			—			—			—			—			(7,020	)		(24,187	)		—			6,007

NET (LOSS) INCOME FROM CONTINUING OPERATIONS		(10,111	)		5,487		8,591		18,472		9,742		455			697			605			545			37			750			217			189			(1,828	)		(7,020	)		(24,187	)		(23,477	)		(20,838	)

Net Loss (Income) from Continuing Operations Attributable to Non-Controlling Operating Partnership Units		18			—		—		—		—		(1	)		(1	)		(1	)		(1	)		—			(1	)		(0	)		(1	)		(6	)		(3	)		10			25			38

Net (Loss) Income from Continuing Operations Attributable to CB Richard Ellis Realty Trust Shareholders	$	(10,093	)	$	5,487	$	8,591	$	18,472	$	9,742	$	454		$	696		$	604		$	544		$	37		$	749		$	216		$	188		$	(1,834	)	$	(7,023	)	$	(24,176	)	$	(23,452	)	$	(20,800	)

Basic and Diluted Net (Loss) Income per Share	$	(0.07	)																																													$	(0.15	)
Weighted Average Common Shares Outstanding—Basic and Diluted		136,456,565																																															136,456,565

See accompanying notes to the pro forma condensed consolidated financial statements.

F-4

Notes to Pro Forma Condensed Consolidated Financial Statements (unaudited)

The adjustments to the pro forma consolidated statement of operations of the Company for the six months ended June 30, 2011 are as follows:

(A) Reflects the historical consolidated statement of operations of the Company for the six months ended June 30, 2011.

(B) Reflects the pro forma adjustment for Duke Tranche II and III in order to present the operations as if the properties were acquired on January 1, 2010. The Company acquired Duke Tranche II and III on March 24, 2011. The underlying pro forma adjustment includes revenues and direct operating expenses, depreciation and amortization expense, and an increase in the investment management fee for the period January 1, 2011 through March 23, 2011 (the data prior to acquisition).

Net (income) attributable to non-controlling operating partnership units reflects an adjustment for the allocable portion of the pro forma income of Duke Tranche II and III.

(C) Reflects the pro forma adjustment for 70 & 90 Hudson in order to present the operations as if the properties were acquired on January 1, 2010. The Company acquired 70 & 90 Hudson on April 11, 2011. The pro forma adjustment includes revenues, direct operating expenses, interest, depreciation and amortization expense, and an increase in the investment management fee for the period January 1, 2011 through April 10, 2011 (the data prior to acquisition).

Net loss attributable to non-controlling operating partnership units reflects an adjustment for the allocable portion of the pro forma income of 70 & 90 Hudson.

The adjustments to the pro forma consolidated statement of operations of the Company for the year ended December 31, 2010 are as follows:

(AA) Reflects the historical consolidated statement of operations of the Company for the year ended December 31, 2010.

(BB) Reflects the historical statement of operations for the nine months ended September 30, 2010 for NIP in order to present the operations as if the properties were acquired on January 1, 2010. The Company acquired NIP on October 27, 2010. Revenues and direct operations expenses are presented on an accrual basis of accounting. Rental revenues are recorded on a straight line basis. Depreciation and amortization and an increase in the investment management fee are included in the pro forma adjustments reflected in (NN).

(CC) Reflects the historical equity in income of unconsolidated interest in the Duke Tranche I for the nine months ended September 30, 2010 as if the properties were acquired on January 1, 2010. The properties were acquired by the Duke joint venture on December 21, 2010. The underlying revenues and direct operations expenses are presented on an accrual basis of accounting. Rental revenues are recorded on a straight line basis. Depreciation and amortization and an increase in the investment management fee are included in the pro forma adjustments reflected in (OO).

(DD) Reflects the historical equity in income of unconsolidated interest in the Duke Tranche II and III properties for the year ended December 31, 2010 as if the properties were acquired on January 1, 2010. The properties were acquired by the Duke joint venture on March 24, 2011. The underlying revenues and direct operations expenses are presented on an accrual basis of accounting. Rental revenues are recorded on a straight line basis. Depreciation and amortization and an increase in the investment management fee are included in the pro forma adjustments reflected in (PP).

(EE) Reflects the historical statement of revenues and direct operating expenses for the year ended December 31, 2010 for 70 & 90 Hudson in order to present the operations as if the properties were acquired on January 1, 2010. The Company acquired 70 & 90 Hudson on April 11, 2011. Revenues and direct operations expenses are presented on an accrual basis of accounting. Rental revenues are recorded on a straight line basis. Depreciation and amortization and an increase in the investment management fee are included in the pro forma adjustments reflected in (QQ).

(FF) Reflects the pro forma adjustment of equity in income of unconsolidated interest in the Duke North Carolina Portfolio as if the properties were acquired on January 1, 2010. The properties were acquired by the Duke joint venture on March 31, 2010. The pro forma adjustments included in equity in income of unconsolidated entities is presented to include revenues, direct operating expenses, depreciation and amortization expense and an increase in the investment management fee through March 30, 2010 (the date prior to acquisition).

Net (income) attributable to non-controlling operating partnership units reflects an adjustment for the allocable portion of the pro forma income of the Duke North Carolina Portfolio.

F-5

(GG) Reflects the pro forma adjustment for 5160 Hacienda Drive in order to present the operations as if the property was acquired on January 1, 2010. The Company acquired 5160 Hacienda Drive on April 8, 2010. The pro forma adjustment recognizes revenues and operating expenses, depreciation and amortization expense and an increase in the investment management fee through April 7, 2010 (the date prior to acquisition).

Net (income) attributable to non-controlling operating partnership units reflects an adjustment for the allocable portion of the pro forma income of the 5160 Hacienda Drive property.

(HH) Reflects the pro forma adjustment for 10450 Pacific Center Court in order to present the operations as if the property was acquired on January 1, 2010. The Company acquired 10450 Pacific Center Court on May 7, 2010. The pro forma adjustment recognizes revenues and operating expenses, depreciation and amortization expense and an increase in the investment management fee through May 6, 2010 (the date prior to acquisition).

Net (income) attributable to non-controlling operating partnership units reflects an adjustment for the allocable portion of the pro forma income of the 10450 Pacific Center Court property.

(II) Reflects the pro forma adjustment of equity in income of unconsolidated interest in the UK JV as if the properties were acquired on January 1, 2010. The properties were acquired by the UK JV on June 10, 2010. The pro forma adjustments included in equity in income of unconsolidated entities is presented to include revenues, direct operating expenses, depreciation and amortization expense and an increase in the investment management fee through June 9, 2010 (the date prior to acquisition).

Net (income) attributable to non-controlling operating partnership units reflects an adjustment for the allocable portion of the pro forma income of the UK JV.

(JJ) Reflects the pro forma adjustment of equity in income of unconsolidated interest in the European JV as if the properties were acquired on January 1, 2010. The properties were acquired by the European JV on June 10, 2010. The pro forma adjustments included in equity in income of unconsolidated entities is presented to include revenues, direct operating expenses, depreciation and amortization expense and an increase in the investment management fee through June 9, 2010 (the date prior to acquisition).

Net (income) attributable to non-controlling operating partnership units reflects an adjustment for the allocable portion of the pro forma income of the European JV.

(KK) Reflects the pro forma adjustment for 225 Summit Avenue in order to present the operations as if the property was acquired on January 1, 2010. The Company acquired 225 Summit Avenue on June 21, 2010. The pro forma adjustment recognizes revenues and operating expenses, depreciation and amortization expense and an increase in the investment management fee through June 20, 2010 (the date prior to acquisition).

Net (income) attributable to non-controlling operating partnership units reflects an adjustment for the allocable portion of the pro forma income of the European JV.

(LL) Reflects the pro forma adjustment for One Wayside Road in order to present the operations as if the property was acquired on January 1, 2010. The Company acquired One Wayside Road on June 24, 2010. The pro forma adjustment recognizes revenues and operating expenses, depreciation and amortization expense and an increase in the investment management fee through June 23, 2010 (the date prior to acquisition).

Net (income) attributable to non-controlling operating partnership units reflects an adjustment for the allocable portion of the pro forma income of the One Wayside Road property.

(MM) Reflects the pro forma adjustment for 100 Tice Blvd. in order to present the operations as if the property was acquired on January 1, 2010. The Company acquired 100 Tice Blvd. on September 28, 2010. The pro forma adjustment recognizes revenues and operating expenses, depreciation and amortization expense and an increase in the investment management fee through September 27, 2010 (the date prior to acquisition).

Net (income) attributable to non-controlling operating partnership units reflects an adjustment for the allocable portion of the pro forma income of the 100 Tice Blvd. property.

(NN) Reflects the pro forma adjustment for NIP in order to present the operations as if the properties were acquired on January 1, 2010. The Company acquired NIP on October 27, 2010. The pro forma adjustment recognizes revenues and direct operating expenses from October 1, 2010 through October 26, 2010, as well as depreciation and amortization expense, and an increase in the investment management fee from January 1, 2010 through October 26, 2010 (the date prior to acquisition).

F-6

Net (income) attributable to non-controlling operating partnership units reflects an adjustment for the allocable portion of the pro forma income of NIP.

(OO) Reflects the pro forma adjustment for Duke Tranche I in order to present the operations as if the properties were acquired on January 1, 2010. The Company acquired Duke Tranche I on December 21, 2010. The underlying pro forma adjustment includes revenue and direct operating expenses for the period October 1, 2010 through December 20, 2010 as well as depreciation and amortization expense and an increase in the investment management fee from January 1, 2010 through December 20, 2010 (the date prior to acquisition).

Net (income) attributable to non-controlling operating partnership units reflects an adjustment for the allocable portion of the pro forma income of Duke Tranche I.

(PP) Reflects the pro forma adjustment for Duke Tranche II and III in order to present the operations as if the properties were acquired on January 1, 2010. The Company acquired Duke Tranche II and III on March 24, 2011. The underlying pro forma adjustment includes depreciation and amortization expense, acquisition expenses and an increase in the investment management fee through December 31, 2010.

Net (income) attributable to non-controlling operating partnership units reflects an adjustment for the allocable portion of the pro forma income of Duke Tranche II and III.

(QQ) Reflects the pro forma adjustment for 70 & 90 Hudson in order to present the operations as if the properties were acquired on January 1, 2010. The Company acquired 70 & 90 Hudson on April 11, 2011. The pro forma adjustment includes depreciation and amortization expense, acquisition expenses and an increase in the investment management fee through December 31, 2010.

Net loss attributable to non-controlling operating partnership units reflects an adjustment for the allocable portion of the pro forma income of 70 & 90 Hudson.

F-7

Gramercy Property Trust Inactive 424B3Prospectus supplement