and i'm going to paraphrase ever so slightly, but as jerry speyer would say, don't screw it up. [ laughter ] i feel very fortunate to work in this environment, to work for a great company and most importantly to get to work with all of you everyday. thank you very much. [ applause ] >> thank you, carl. now we're going to move from the talk about the tech explosion to one of our most significant economic generators, which is the hospitality industry and i think we're going to have some breaking news this morning, if i can call it that. and see some of the first visuals of the moscone center expansion. at least i think so. so we're so fortunate -- i'm not going to waste a lot of time on the introduction, but have i to say that joe, president and ceo of sf travel association, formerly san francisco convention bureau is one of the leaders of the city and has done so much for the industry and for sf travel. and he is going to tell you about the plans for the moscone center expansion. he has done so much and created the san francisco tourism improvement district in 2009 and that actually is help

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