Our consistent performance is closely connected to our strategy of concentrating on a few of the best submarkets in the Mid-Atlantic region, rather than spreading our resources throughout many disparate markets across the country. The Greater Washington region has a robust economy, the fourth largest in the country, to support COPT’s continued strong performance. In 2001, despite the downturn in the national economy, the region ranked first in U.S. job growth, bolstered by the federal government, which provides 40% of the region’s GDP and employs 12% of the workforce.

The Baltimore/Washington Corridor is COPT’s dominant franchise. Led by the federal government and numerous defense contractors, the Corridor boasts strong demographics and a stable economy. In addition, this market is home to a diverse mix of companies in a broad range of industries—from biotech to aerospace to communications. Sustaining this diverse economy is one of the nation’s most educated workforces and an excellent transportation infrastructure. At year-end 2001, COPT’s market share in the Baltimore/Washington Corridor was 26%, with 64 properties totaling 4.8 million square feet, along with six buildings under construction. This critical mass provides COPT with the unique advantage of being able to satisfy the total real estate needs of our current tenants as well as new firms entering the market.

Northern Virginia is rated among the best markets in the country, with 126 million square feet of office space. Its strong demographics are similar to those in the Baltimore/Washington Corridor. The federal government is a major economic driver for the local intelligence and defense industries, as well as for numerous other industries in the area. As a result of an increased emphasis on military defense, homeland security and intelligence, this market will continue to expand and we will capture a portion of this growth. In addition, Northern Virginia contains more than 95,000 firms, including numerous Fortune 500 companies.

The I-270 Corridor in Montgomery County, Maryland, is another market where COPT is pursuing opportunities. Located between the Baltimore/Washington Corridor and Northern Virginia, the I-270 Corridor’s stable economy and demographics are consistent with COPT’s other markets. With 65 million square feet of office space, the I-270 Corridor is home to more than 200 biotechnology enterprises that benefit from the nearby federal government.

With the Baltimore/Washington Corridor as a foundation, Northern Virginia and Maryland’s I-270 Corridor offer expansion opportunities that will allow COPT to pursue a growth strategy of becoming a leading Washington area suburban office REIT.