PS Business Parks (PSBXP) 8-K PS Business Parks, Inc. Acquires 5.3 Million Square Foot Industrial and Flex Portfolio located in Northern California for $520 Million

Northern California Industrial and Flex

Portfolio Acquisition

December 20, 2011

Exhibit 99.2

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PSB Overview Post Acquisition

Acquisition Highlights

Financing Strategy

Conclusion

Appendix

Contents

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PSB Overview –

Post Acquisition

27.2 Million Square Feet; an increase of 24.4%

102 Business Parks in Eight States, increased from 84

Average Customer Size: 5,500 Sq. Ft., increased from 4,700

4,360 Customers, an increase of 216

Total Market Cap: $3.1 Billion

Data As of December 20, 2011

PSB Office

PSB Cluster of Properties

Strong Geographical Diversity within Vibrant Markets

1.3 mm sf

7.2 mm sf

3.2 mm sf

0.8 mm sf

0.7 mm sf

1.8 mm sf

6.5 mm sf

3.7 mm sf

1.5 mm sf

0.5 mm sf

Flex: 56.4%, Office: 18.3%, Industrial: 25.3%

Average Customer Size: 5,500 Square Feet

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Acquisition Overview

Northern California Industrial/Flex Portfolio

East Bay & Silicon Valley, CA   

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Sample Portfolio Photos

Dixon Landing Business Park

Walsh at Lafayette

Bayview Business Park

Hayward Business Park

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5.3 million sf  

54% Industrial

46% Flex

$520 million purchase ($98 psf)

82% occupied

18 business parks (89 buildings)

Average tenant size: 20,000 sf

216 customers

Average remaining in-place

lease term of 2.6 years

Northern California Industrial & Flex Portfolio Overview

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Expansion of PSB’s Platform in the Bay Area 

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Deep Bay Area Platform

Location: Highly sought after Bay Area flex/industrial markets

Critical Mass:  5.3 million square feet and 18 business parks

Total Northern California Presence: 7.2 Million Square Feet, 30 business parks

Average Tenant Size: 20,000 square feet

Functionality: Core industrial/flex multi-tenant properties  

Operational Upside: PSB in-house leasing and management

Opportunity to capture market momentum

At 82% occupancy, below PSB’s existing Bay Area portfolio (92%)

Strategic Considerations

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Portfolio Summary By Submarket

(1) As of December 20, 2011

(1)

Property

Parks

Square Feet

% of Portfolio

Occupancy

Hayward

6

2,333,528

44%

82.8%

Fremont

3

636,579

12%

69.6%

Concord

1

245,930

5%

71.4%

Oakland

1

199,733

4%

83.2%

San Leandro

1

113,196

2%

84.6%

Total East Bay

12

3,528,966

67%

79.7%

San Jose

3

692,529

13%

90.3%

Milpitas

1

505,199

9%

69.1%

Santa Clara

1

320,505

6%

96.8%

Sunnyvale

1

287,300

5%

100.0%

Total Silicon Valley

6

1,805,533

33%

87.1%

Totals

18

5,334,499

100%

82.2%

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Market Data (Q3 2011)

Industrial/Flex - Oakland/East Bay

Size

196,247,212

Vacancy

9.3%

Absorption

1,198,560

Under Construction

-0-

Industrial/Flex - Silicon Valley

Size

103,518,905

Vacancy

7.4%

Absorption

477,531

Under Construction

-0-

Source:  CBRE

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Acquisition Funding

$250 Million Existing Loan Assumed (Cross Collateralized)

5 Year Remaining Term

5.45% Fixed Rate

$250 Million Term Loan with Wells Fargo Bank

3 Year Term

Interest Rate at 1.20% Over LIBOR

Prepayable Without Penalty

Balance Funded with Retained Cash/Credit Facility

Total Market Capitalization:  $3.1 Billion

Capital Structure

Note: Balances are as of 12/20/11

Secured Debt

9.2%

Unsecured Debt

13.6%

Preferred

Equity

19.8%

Common Stock/OP Units

57.4%

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APPENDIX

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PSB

Portfolio

Diversification

–

Post

Acquisition

Data as of 12/20/11

Pro Rata

Pro Rata

Region

Square Feet

Share

Square Feet

Share

No.California

1,818,000

8.3%

7,152,000

26.3%

Washington DC Metro

6,517,000

29.8%

6,517,000

23.9%

So. California

3,988,000

18.2%

3,988,000

14.7%

Florida

3,717,000

17.0%

3,717,000

13.7%

Texas

3,326,000

15.2%

3,326,000

12.2%

Pacific Northwest

1,835,000

8.4%

1,835,000

6.7%

Arizona

679,000

3.1%

679,000

2.5%

Total

21,880,000

100.0%

27,214,000

100.0%

Flex Portfolio

12,904,000

59.0%

15,346,000

56.4%

Industrial Portfolio

3,981,000

18.2%

6,873,000

25.3%

Office Portfolio

4,995,000

22.8%

4,995,000

18.3%

Total

21,880,000

100.0%

27,214,000

100.0%

Pre-Acquisition Allocation

Post-Acquisition Allocation

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Customer Diversification (Full Portfolio)

Company data as of 12/20/11.

Top

10

Tenants

–

Percent

of

Annualized Rental Income:

U.S Government:  6.7%

Lockheed Martin Corporation:  1.5%

Level 3 Communications: 1.1%

Kaiser Permanente: 1.1%

Bristol-Myers Squibb: 0.8%

Wells Fargo Bank: 0.7%

Luminex Corporation:  0.7%

Keeco, LLC: 0.6%

AARP: 0.5%

ATS Corporation:  0.5%

Percentage of Total Rent by Sector

Other, 9.1%

Business Services,

15.7%

Computer Hardware,

Software & Related

Services, 10.4%

Health Services, 11.3%

Government, 10.6%

Warehouse,

Transportation and

Logistics, 9.2%

Engineering and

Construction, 6.1%

Insurance and Financial

Service, 5.9%

Retail, Food and

Automotive, 5.5%

Aerospace / Defense

Products and Services,

2.9%

Educational Services,

1.8%

Electronics, 3.1%

Home Furnishings, 3.4%

Communications, 5.1%

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Acquired Portfolio Top 20 Tenants

Tenant Name

Sqft

Keeco, L.L.C.

279,669

Valley Relocation

212,840

Level 3 Communciations

197,100

EGL Eagle Global Logistics, LP

180,164

Applied Materials, Inc

150,480

KZ Kitchen Cabinet

138,325

PODS of San Francisco, LLC

118,820

Bristol Myers Squibb Company

113,792

First Solar, Inc.

110,025

Brook Furniture

95,904

Contract Office Group, Inc.

92,425

Kuehne & Nagel

90,720

McCollister's Moving

66,893

Apple, Inc

66,185

Fremont Furniture Solutions

58,608

The Gene Schick Company

54,266

Finisar Corporation

43,756

Metabolex

41,600

Cetecom

41,361

Commercial Casework

40,152

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Disclaimer

When used within this presentation the words “may,”

“believes,”

“anticipates,”

“plans,”

“expects,”

“seeks,”

“estimates,”

“intends”

and similar expressions are

intended to identify “forward-looking statements.”

Such forward-looking statements

involve known and unknown risks, uncertainties and other factors, which may cause

the actual results and performance of the Company to be materially different from

those expressed or implied in the forward-looking statements. Such risks, uncertainties

and other factors relate to, among others, difficulties encountered in integrating the

properties, inability to realize expected synergies, unanticipated operating costs,

unexpected declines in occupancy, the risk of natural disasters including earthquakes

and the effects of general and local economic and real estate conditions. Additional

factors which could impact the forward-looking statements contained in this

presentation are contained in the company’s filings with the Securities and Exchange

Commission. PS Business Parks, Inc. assumes no obligation to update or supplement

forward-looking statements that become untrue because of subsequent events.