i am also grateful to jerry and rob speyer for driving this company that can take on and capitalize projects. there are few companies able to do this. i feel very lucky to be part of such a strong and wonderful team and to work with my colleagues here in san francisco. i have to talk first today about what we see going on and then i'm going to talk a little bit about how we at tishman speyer want to capitalize on that. i'm going to start at the risk of boring everyone with a couple of charts. the first chart shows the average sales prices for office buildings in blue. it shows the average replacement costs in green and the line is the cap rates for office product in san francisco. and there are a couple of things that i think are worth pointing out in this chart. first, that while values have increased, they still fall short of the peaks that we saw in 2007. also while replacement costs have been fairly steady here in the last several years, if you look back historically, there has been a stair-stepping historically over time of replacement costs. and i believe that we're about to enter an e