Committed to Chicago. Connected to the World. NAI Hiffman Metropolitan Chicago. Industrial Market Review Third Quarter hiffman.

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1 Committed to Chicago. Connected to the World. NAI Hiffman Metropolitan Chicago Industrial Market Review Third Quarter 212 hiffman.com

2 To our valued customers, partners and future clients... While the statistics on the following pages paint a positive picture, I find true encouragement in what these numbers represent. Each new lease or expansion is more than numbers on a page, it s a story of individual companies making decisions with increased optimism and with concrete effects in the real world. It s a sign of companies hiring and increasing production. It s measureable evidence that the private sector will not stand still and wait but instead has adjusted and continues to work their business plan. More square footage leased and more tenants moving forward equate to more revenue for our owners first and foremost as well as for the taxing municipalities to support the required infrastructure requirements. These charts and graphs are indicators that we have reason for our optimism. When things go badly, it seems that financial markets become so precarious that tentative daily gains can be wiped out by the slightest hint of bad news. The trudge back to normal becomes an uphill battle, and every gain is followed immediately by a nervous glance over the shoulder. A storm cuts production at an oil refinery in the Gulf or stops commerce along the east coast for days? The Dow drops 1 points. The Eurozone has a bad afternoon? The S&P tanks. Ben Bernanke has a cold? Sell now before another negative appears and it s too late! As our third quarter reports reflect, it appears that momentum continues to build in the opposite way - meaning positive direction. Remember the days when our economy was a barreling train and setbacks were like bugs on a windshield? Don t get excited, we re not there yet. But it s not 28, either. There is real reason for optimism the numbers and the activity tell us so! Regards, David A. Petersen, RPA CEO, NAI Hiffman

3 NAI Hiffman Metropolitan Chicago Industrial Market Review Third Quarter 212 Table of Contents Local Economy Industrial Market Statistics Industrial Market Summary Industrial Submarket Overviews Lake County Southeast Wisconsin I-9/Northwest Northwest Cook North Cook Fox Valley Central DuPage O Hare West Cook Chicago I-88 Corridor I-55 Corridor South Cook I-8/Joliet Corridor Northwest Indiana NAI Hiffman understands that our success is the direct result of creating successful outcomes for our clients. We build lasting relationships with our clients and partners, engaging our individual initiative joined with collaboration and teamwork. Our unrelenting commitment to excellence and integrity forms the foundation of our guiding principles and shapes our strategies. Committed to Chicago. Connected to the World. Industrial Submarket Map Methodology & Definitions NAI Global/NAI Hiffman Build on the power of our network. NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - THIRD QUARTER 212 3

4 Local Economy POPULATION (21 CENSUS) 9,461,15 POPULATION CHANGE (2-21) +4.% NUMBER OF HOUSEHOLDS (28) 3,516,729 MEDIAN HOUSEHOLD INCOME (28 EST.) $67,234 GROSS METRO PRODUCT (21) LABOR FORCE TOTAL JOBS GAINED (9/11-9/12) CHICAGO AREA UNEMPLOYMENT RATE ILLINOIS UNEMPLOYMENT RATE U.S. UNEMPLOYMENT RATE $532 BILLION 4,124, ,27 8.% 8.8% 7.9% Unemployment and Work Force Participation 68% 67% 66% 65% 64% 63% Case-Shiller Home Price Indices 1989 $2. Trillion $1.5 Trillion $1. Trillion $.5 Trillion Chicago Case-Shiller Index U.S. National Case-Shiller Index $ Metro Chicago Unemployment Rate U.S. Unemployment Rate U.S. Labor Force Participation Rate Corporate Profits After Tax U.S. Non-Farm Job Openings Corporate Profits vs. Job Openings Source: Standard & Poor s % 1% 8% 6% 4% 2% Source: Bureau of Labor Statistics 6, 5, 4, 3, 2, Source: Bureau of Labor Statistics & Bureau of Economic Analysis Local Economy Review The third largest metropolitan area in the U.S. after New York and Los Angeles, Chicago is the most influential economic region between the East and West Coasts. Foreign Policy Magazine recently ranked Chicago sixth among world competition, measuring econometrics from the number of Fortune 5 companies to the flow of goods and services through airports and ports. Situated at the geographical heart of the nation, Chicago s locational advantages have fostered its development into an international center for banking, securities, high technology, air transportation, business services, wholesale and retail trade, and manufacturing. In addition, Chicago is one of the principal trading centers for commodities, financial, and derivative futures products with the Chicago Mercantile Exchange and Board of Trade. Quarter in Review By the time you read this you may have already voted, you may be about to cast your vote, or the election may have already passed by. For the past several months the public has been barraged by campaign advertisements, slogans, out-of-context sound bites, political attacks, the Presidential debates, and uncertainty. The uncertainty associated with the election is nothing new to us, as uncertainty has become a way of life in the United States. The country has been mired in a tepid recovery for the past three years. In a typical recovery following a recession as deep as we witnessed in 28 and 29, GDP and economic indicators rebound strongly, as pent up demand results in a rush of economic activity. This activity builds consumer confidence, reinforcing the recovery until the painful effects of the recession are erased and the economy resumes steady growth, supported by its population. Instead, the heavy cloud of uncertainty still hangs over the economy, dampening the ongoing recovery. GDP growth over the three-year span of the recovery has averaged only 2.2%, well below the 3%-5% rates that constitute solid economic growth. This uncertainty stems from several sources,

5 including the difficulty of congress to work together, the effects of the European debt crisis and the looming fiscal crisis that has nearly reached Y2K levels in the media as a buzzword. The election itself breeds uncertainty. Despite the candidates discussing policies and the economy at length, the focus will always be on their differences of opinion. When the election is over and a winner is announced, uncertainty will be reduced because the country will at least have a general idea of how the winner will address the issues affecting the country. Looking Forward The outlook for the economy is still positive, and could even have the capacity to surprise many of us with its resiliency. Corporate profits remain near record highs, but companies aren t hiring as briskly as anticipated due to the aforementioned uncertainty. They don t know how corporate tax rates will change, what the plan is to reduce the record deficit, or whether congress will be able to come together to address the issues impacting the fiscal cliff so the country can avoid another recession. Following the election, at least some of these big questions can be answered and the country can get behind the president. Hopefully the government can develop and communicate to the public a deficit reduction plan for the next few years. Between the election and a solid plan going forward, the cloud of uncertainty could be lifted enough for the recovery to kick into a higher gear. The good news is, the United States economy is still growing, and is currently one of the only few doing so throughout the world. The global recession continues elsewhere, and several European nations have dipped into a second recession period. The U.S. housing market is finally turning around. The market has been depressed for so long that the potential for a housing boom is even a possibility. Retail sales continue to build, the unemployment rate has dropped below 8%, employment growth and job openings continue to increase, and consumer credit is steadily increasing again. The U.S. stock market continues to perform better than many of the top stock markets throughout the world. The dollar has been strong and interest rates remain low. These are all positive signs of an economy building momentum. The U.S. economy may not be growing as fast as originally predicted or as fast as we may want it to, but we aren t facing the issues that Europe or China are. Consumer Price Indices (CPI) 6% 4% 2% % -2% -4% Crude Oil Prices 15% 9% 3% -3% -9% -15% 199 Core CPI 12-Month Percent Change (excludes volatile food and energy prices) CPI 12-Month Percent Change Crude Oil Price 12-Month Percent Change Source: Bureau of Labor Statistics Current Job Recovery vs. Past Recoveries U.S. Imports & Exports - Trade Balance months since job turnaround August 212 Trade Deficit -$44.2 B $15 $12 $9 $6 $3 $ Source: WTRG Economics Trade Deficit 1% 8% 6% 4% 2% % 12-month percent change in # jobs Source: Bureau of Labor Statistics, Bureau of Labor Statistics $25 B $2 B Local Economy Review Following the election, policymakers and the country will have to work together to address the upcoming expirations of tax cuts and the mandated spending cuts that define the fiscal cliff expected at the beginning of the year. Combined, their effects on GDP could be enough to derail the economic recovery, pushing the country into another recession. Whatever the result of the election, a plan to avoid the fiscal cliff and to reduce the record deficit is needed to grow the economy, create new jobs, and reduce uncertainty U.S. Imports U.S. Exports 212 $15 B $1 B Source: U.S. Census Bureau NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - THIRD QUARTER 212 5

6 Geneva Beloit 2 Westosha Airport Wisconsin Industrial Submarket Overviews Pleasant Prairie Illinois 1 2 Lake County Southeast Wisconsin I-9/Northwest Northwest Cook kford 5 Rockford North Cook Fox Valley Central DuPage Valleyy 8 O Hare West Cook Chicago I-88 Corridor Waukegan Regional Airport 1 Crystal Lake C y Cherry 14 helle Lake Forest Vernon Hills Lake Zurich Highland Park Buffalo Grove Northbrook Chicago Executive Airport 3 Arlington Heights 4 9 Elgin Schaumburg 12 I-55 Corridor Waukegan Grayslake Des Plaines Niles Elk Grove Village Int'lOhare Airport South Cook Evanston Skokie Wood Dale8 alb DeKalb I-8/Joliet Corridor Northwest Indiana Addison 29 Dupage Airport 6 St Charles Carol Stream West Chicago North Aurora 11 9 Elmhurst Chicago 55 La Grange Downers Grove Burr Bedford Ridge Woodridge Park Willow Springs 88 Naperville Aurora Franklin Park Montgomery Bolingbrook Chicago Midway Airport 294 Romeoville Plainfield Palos Heights 94 Gary/Chicago Airpo Hammond Tinley Park Monee Elwood Schererville Park Forest Minooka La Salle 8 94 Matteson New Lenox Indiana Joliet Munster 8 Illinois Mokena 15 M

7 Industrial Market Statistics NAI Hiffman Industrial Market Review Third Quarter 212 Industrial Market Statistics Submarket # Bldgs. Total RBA Vacant Vacancy 3Q12 NET 212 YTD Net New Supply Under Constr. (SF) (SF) Rate (%) Absorption (SF) Absorption(SF) (SF) (SF) Chicago North 1,16 64,171,848 4,712, % -3,454 26,199 Chicago South 1,699 15,7,222 14,453,24 9.6% 321, ,682 North Cook 79 45,842,324 2,886, % 162,459 85,794 West Cook 738 6,11,284 5,86,23 9.7% -21, ,286 Southwest Cook 491 4,138,458 2,762,31 6.9% 1,135,634 1,295,39 911,97 South Cook 1,126 85,81,394 9,195,95 1.7% 239,598 8,36 171,67 I-57/Will Corridor 82 13,772,467 2,196, % 178,28 19,16 71, Lake County 93 66,84,475 5,253,61 7.9% 426, ,499 Northwest Cook ,431,27 2,114,24 7.4% 5,816 28,59 O Hare 1,72 99,976,33 9,911, % -258, ,151 Central DuPage 1,93 67,25,23 4,548, % 9, ,49 I-55 Corridor 655 8,699,86 5,316, % 965,726 1,395, ,5 649,124 McHenry County ,395,823 3,77, % 52,9 71,152 I-9/Northwest ,886,93 2,463, % 246,5 377, ,97 223,488 Fox Valley ,225,276 3,4,41 9.4% -15, , , I-88 Corridor ,834,957 5,115,37 8.3% 347,961 1,24, ,357 I-8/Joliet Corridor ,653,294 7,275, % 61,87 1,45,3 265, 2,741,32 DeKalb County 57 6,97,869 59, % -34,84-44,582 I-39 Corridor ,613,891 4,479, % 79,15 68,889 44, Southeast Wisconsin ,853,26 4,164, % 131, ,359 78,888 Northwest Indiana ,652,57 2,814,3 7.9% -39, ,585 1, Flex Space Summary Total Flex Space 1,531 72,591,894 11,97, % -1, ,49 71, Total Market Summary 16,387 1,196,558, ,246, % 4,52,153 11,733,476 1,926,328 4,665,671 The data compiled in the Chicago Industrial and Office Market Reviews is the legal property of NAI Hiffman. Reproduction or dissemination of the information contained herein is strictly prohibited without the expressed written consent of NAI Hiffman. This review contains information, including information available to the public, which has been relied upon by NAI Hiffman on the assumption that it is accurate and complete without independent verification by NAI Hiffman. NAI Hiffman accepts no responsibility if this should prove to be inaccurate or incomplete. No warranty or representation, express or implied, is made by NAI Hiffman as to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, and changes in market conditions. NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - THIRD QUARTER 212 7

8 NAI Hiffman Metropolitan Chicago Industrial Market Review Third Quarter 212 # INDUSTRIAL BUILDINGS 16,387 MARKET SIZE (SF) 1,196,558,188 VACANCY 113,246,218 SF (9.5%) 3Q12 NET ABSORPTION (SF) 4,52,153 YTD NET ABSORPTION (SF) 11,733,476 NEW SUPPLY (SF) 1,926,328 UNDER CONSTRUCTION (SF) 4,665,671 1 MM 5 MM -5 MM -1 MM Vacancy Rate (%) Historical Deliveries 3 MM 25 MM 2 MM 15 MM 1 MM 5 MM MM Net Absorption (SF) Total Sale Transactions and Price PSF $1,,+ Transactions 1 MM 8 MM 6 MM 4 MM 2 MM Total SF Sold # Total # of Sales Average Price PSF Total Deliveries (SF) Average (SF) % 13% 11% 9% 7% Source: CoStar $7. $6. $5. $4. $3. $2. Data: CoStar & NAI Hiffman Market Summary Chicago is the second largest industrial market in the U.S. with nearly 1.2 billion SF of inventory, second only to the Greater Los Angeles industrial market. The Chicago industrial market remains the most influential in the Midwest, due to its growing prominence as an inland port and its diverse, comparatively low-cost labor force. It has the second largest workforce in the country and is the largest manufacturing market. Chicago s strategic location and transportation infrastructure make it the most important transportation center in the country. Located in the path of three of the nation s busiest transcontinental expressways (I-8, I-9 and I-94), Chicago also claims 7 percent of the nation s rail and intermodal activity. The metropolitan area sits at the convergence of all six class-one railways and within a day s drive of one-third of the country s population. Quarter in Review Demand for industrial space in the Chicago industrial market continued to increase through the third quarter of 212, as evidenced by the absorption of an additional 4.26 million SF of vacant space over the past three months. During the first three quarters of 212 alone, nearly 11.5 million SF of vacant space has been absorbed through user sales, new leasing activity and companies taking back some of the space they had left vacant in response to the effects of the economic recession. Since the market turned around and started seeing things improve two years ago, more than 29.8 million SF of vacant space has been absorbed. This figure exceeds the 29.5 million SF of vacant space added to the market through companies retrenching, downsizing or closing their doors due to the recession. Looking strictly at net absorption, Chicago s industrial market has recovered. The vacancy rate has steadily declined for the past two years as this vacancy space has been absorbed by companies new to the Chicago area and established companies expanding their operations. This rate peaked at 12.1% during the second quarter of 21, one of the highest rates the market has historically witnessed. Since then it has dropped at an average rate of 33 basis points per quarter to 9.5% by the end Pictured Above: 1 Veterans Pky in Bolingbrook, where automotive third-party logistics company Reviva Logistics LLC leased 354,211 SF during the third quarter

9 Industrial Market Trends Vacancy Rate Net Absorption Asking Rents of September. The last time the industrial market s vacancy rate was this low was in early 28, as leading economic indicators were just beginning to sour, and well before the stock market crash and resulting panic that set in that October. Looking strictly at the vacancy rate, Chicago s industrial market has recovered. Suburban Submarkets by Size I-8/Joliet Corridor I-88 Corridor West Cook North Cook 63,653,294 SF 61,834,957 SF 6,11,284 SF 45,842,324 SF Industrial Market Summary Southeast Wisconsin 44,853,26 SF However, that s not the whole story. A healthy market should grow steadily, right along with the population growth. Prior to the downturn, an average of 14.5 million SF of new construction was being completed per year. The past three years have witnessed less than 14.5 million SF of new construction combined, each posting well below 5 million SF delivered per year. Most of these recent construction projects have been build-to-suit facilities designed specifically for tenants. Speculative construction is only now beginning to increase. While the nation s population has continued to grow at around 1% per year, the size of Chicago s industrial market has stagnated. If construction had continued at a steady pace to match the growth of the population, the vacancy rate would be much higher today, and the market would still be far from fully recovering. With an industrial base similar in size to four years ago, Chicago s industrial market is serving a smaller percentage of the population today than it was prior to the recession. Looking Forward During the first year of the industrial market s recovery, the majority of the absorption was witnessed in historically active submarkets home to modern product and excellent access. Many of the largest and most desirable spaces have now been leased, leaving users with few options. Since then, the area s secondary submarkets have seen absorption pick up and vacancy rates decline as companies look beyond the typical industrial corridors for their expansion needs. This demand for above-average space and the lack of options has led to an increase in construction market-wide, as nearly 5 million SF is currently underway, the most in years. Construction should continue to pick up over coming quarters. O Hare South Cook I-55 Corridor Central DuPage Lake County 99,976,33 SF 85,81,394 SF 8,699,86 SF 67,25,23 SF 66,84,475 SF Total Industrial Base Southwest Cook Northwest Indiana Fox Valley Northwest Cook I-9/Northwest McHenry County I-39 Corridor I-57/Will Corridor DeKalb County 3Q 212 Net Absorption (SF) by Submarket 1,2, 8, 4, -4, 1.3 Billion 1.2 Billion 1.1 Billion 1. Billion.9 Billion.8 Billion.7 Billion Southwest Cook I-55 Corridor I-8/Joliet Corridor Lake County I-88 Corridor Chicago South Q3 212 Total Net Absorption: 4,52,153 SF South Cook I-9 Northwest I-57/Will Corridor North Cook Total Industrial Base (SF) Southeast Wisconsin Central DuPage I-38 Corridor McHenry County Northwest Cook Fox Valley Chicago North ,138,458 SF 35,652,57 SF 32,225,276 SF 28,431,27 SF 25,886,93 SF 25,395,823 SF 24,613,891 SF 13,772,467 SF 6,97,869 SF DeKalb County West Cook Northwest Indiana O Hare Significant New & Expansion Industrial Lease Transactions 3rd Qtr 212 Property Address Submarket City Leased (SF) Tenant Comments 1 Veterans Pky I-55 Corridor Bolingbrook 354,211 Reviva Logistics LLC New lease 635 Northwest Ave West Cook Northlake 346,663 HD Supply Lease renewal/expansion W Crossroads Pky I-55 Corridor Romeoville 312,25 Lennox New lease 131 Internationale Pky I-55 Corridor Woodridge 263,7 Provide Commerce New lease 22 Pratt Blvd O Hare Elk Grove Village 238,681 Main Steel Polishing Company, Inc New lease 13 Busse Rd O Hare Elk Grove Village 229,841 Yusen Logistics Build-to-suit lease Italics denotes NAI Hiffman transaction NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - THIRD QUARTER 212 9

10 Lake County POPULATION 73, POPULATION CHANGE +9.2% # INDUSTRIAL BUILDINGS 93 MARKET SIZE (SF) 66,84,475 VACANCY 5,253,61 SF (7.9%) 3Q12 NET ABSORPTION 426,716 YTD NET ABSORPTION 799,499 NEW SUPPLY (SF) UNDER CONSTRUCTION (SF) chenry Fox Lake Wisconsin Illinois 45 Grayslake Gurnee Waukegan Regional Airport 12 Zion Waukegan North Chicago Submarket Trends Vacancy Rate Net Absorption Asking Rents ake Lake Zurich 12 Libertyville Mundelein 6 Vernon Hills Buffalo Grove 176 Lake Forest 41 Highland Park Plti 294 1,, 6, 2, -2, -6, -1,, Inventory By City 33% 1,2, 1,, 8, 6, 4, Vacancy Rate (%) 23% 7% 7% 9% 1% 11% Waukegan Libertyville Gurnee Buffalo Grove Lake Zurich North Chicago Construction Deliveries Net Absorption (SF) Other Lake County Suburbs 14% 12% 1% 8% 6% Lake County Overview The Lake County industrial submarket is notable for its roster of corporate headquarters and heavy concentration of owner-occupied real estate, all located within close proximity to the I-94 Tri-State Tollway. Entrepreneurial owners and corporate managers residing along the lakefront and northwest Lake County make this area attractive for investment. Corporate neighbors including Abbott, Baxter, Caremark, Takeda, Walgreens and WMS join privately held companies such as CDW, Medline and ULINE to form a vibrant base of employment. Lake County s relatively low property tax rates attract companies from Cook County, although infrastructure demands have begun to slightly even the playing field. The Lake County vacancy rate decreased for the fifth consecutive quarter, dropping to 7.9%, a decrease of 6 basis points from last quarter and close to pre-recesion lows around 7%. A year ago, this rate was much higher at 1.3%, and two years ago it was peaking at 11.9%. Absorption totaled 426,716 SF for the quarter, bringing the year-to-date total to 799,499 SF. Nearly 2.8 million SF of vacant space has been absorbed in Lake County since the market began to turn around in earnest last year. 2, Over the next few quarters, if recent trends hold, the area will return to pre-recession levels, four-and-a-half years after it began. Pictured Above: 15 Harris Rd in Libertyville, leased by water treatment company Culligan International in the third quarter

11 Construction Development activity is at a standstill in Lake County, and will remain limited until the overall industrial market returns to prerecession vacancy levels and the economy improves. Transaction Activity In the largest sale of the quarter, Gurnee-based Veridian Healthcare purchased the 59,981 SF building at 1175 Lakeside Dr in Gurnee. The importer and distributor of medical diagnostic equipment was looking to keep its corporate headquarters in Gurnee, and will use the facility to distribute its products, while strengthening its Midwest presence. Available Space Profile 1.1 MM 1.8 MM 1.1 MM 2.3 MM 2. MM , 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ # of Buildings Lake County Overview The largest lease of the third quarter involved Culligan International leasing the 217,62 SF building located at 15 Harris Rd in Libertyville. The industry leader in water treatment plans to use this facility as a distribution center and will also house additional offices in the building , 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Looking Forward The Lake County industrial submarket continues to see demand return as economic conditions improve and the overall industrial market recovers. Over the next few quarters, if recent trends hold, the area will return to pre-recession vacancy levels, fourand-a-half years after the recession and subsequent downturn in the industrial market began. With a majority of available buildings smaller in size, the area is particularly attractive to local entrepreneurs who want to build their business, while remaining close to their homes and employee base. Significant Lake County Sale Transactions 3rd Qtr Property Address City Size (SF) Sale Price Price PSF Buyer Seller 1175 Lakeside Dr Gurnee 59,981 $3,543,822 $59. Veridian Healthcare CenterPoint Properties 15 Busch Pky Buffalo Grove 53,298 $3,, $56. Electronic Recycling Services LLC ECD Company Abbott Dr Wheeling 43,93 $2,195, $5. Dynomax, Inc Cabot Properties Significant Lake County Lease Transactions 3rd Qtr 212 Property Address City Leased (SF) Tenant Comments 15 Harris Rd Libertyville 217,62 Culligan International New lease 8 Church St Lake Zurich 116,925 CTI Industries New lease 3 E Main St Lake Zurich 88, Excess International Lease renewal 9 Busch Pky Buffalo Grove 64,685 The Pillow Factory (Encompass Group) New lease 17 Leider Ln Buffalo Grove 63,189 Zebra Technologies New lease Delany Rd Gurnee 4,52 Ark Logistics New lease 11 Albrecht Dr Lake Bluff 25,253 Lindemann Chimney New lease NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - THIRD QUARTER

12 Southeast Wisconsin POPULATION 254, POPULATION CHANGE +5.1% # INDUSTRIAL BUILDINGS 525 Burlington 142 Racine Sturtevant MARKET SIZE (SF) 44,853,26 VACANCY 4,164,172 SF (9.3%) 3Q12 NET ABSORPTION 131,129 YTD NET ABSORPTION 635,359 NEW SUPPLY (SF) 78,888 UNDER CONSTRUCTION (SF) 83 Westosha Airport 5 45 Wisconsin Illinois Kenosha Regional Airport Pleasant Prairie Kenosha 32 Zi Submarket Trends Vacancy Rate Net Absorption Asking Rents 1,5, 875, 25, -375, ,, Vacancy Rate (%) Net Absorption (SF) Inventory By City 6% 16% 34% Racine Pleasant Prairie Sturtevant 17% Kenosha Burlington 27% Construction Deliveries ,5, 2,, 17% 15% 13% 11% 9% 7% Southeast Wisconsin Overview The primary advantages of the Southeast Wisconsin submarket are the availability of affordable land for big box development as well as lower utility costs, property taxes and workers compensation when compared to submarkets in Illinois. The Lakeview Corporate Park in Pleasant Prairie, Wisconsin accounts for the lion s share of our statistical tracking in the Southeast Wisconsin industrial submarket. This 1,5-acre business park boasts 25 million SF of industrial space and is home to an international roster of companies including S.C. Johnson, IRIS, Yamaha and Jelly Belly. The Southeast Wisconsin submarket has experienced positive absorption during every quarter since June 29. The third quarter continued this trend, as 131,129 SF was absorbed through new leases and user sales. The area s vacancy rate dipped 3 basis points to 9.3%, down nearly five percentage points from its peak during the second quarter of 29. Over the first three quarters of 212, 635,359 SF of space has been absorbed in the area through new leases and lease expansions, user sales and the delivery of new fully-leased buildings. 1,5, 1,, 5, Vacancy has dropped to the lowest level in fi ve years due to interest in Southeast Wisconsin s modern product and economic incentives. Pictured Above: 1955 Norwood Ct in Racine, an 83,6 SF industrial warehouse building purchased by Racine Railroad Products during the third quarter

13 Construction Racine Metal Fabrication s new 78,888 SF facility was completed during the third quarter at 152 Grandview Pky in Sturtevant. National developer Majestic Realty Co, based out of Los Angeles, purchased 88.3 acres of land in Pleasant Prairie and are considering breaking ground on a speculative facility in the spring of 213. The site can support more than 1 million SF of product. Milwaukee-based Zilber Property Group has yet to break ground on a new speculative industrial building proposed in Pleasant Prairie. Available Space Profile MM.2 MM.6 MM 1.1 MM 1.3 MM 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ # of Buildings Southeast Wisconsin Overview 24 Transaction Activity The largest sale in the third quarter was completed by Racine Railroad Products, who purchased the 83,6 SF building at 1955 Norwood Ct in Racine. The company specializes in the manufacturing of rail machinery and gasoline and hydraulic portable tools in the Southeast Wisconsin-area , 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Asset Recyclers leased 2, SF at Carlisle Ave in Racine, close to where its headquarters are located. The company provides an array of services, ranging from asset recovery, recycling of electronics, and data security. Looking Forward The vacancy rate in Southeast Wisconsin is the lowest it has been for the past five years, dropping to levels lower than seen prior to the recession in 27. This interest and demand for modern product and the economic incentives offered in Wisconsin will continue to be very attractive to Illinois companies over the coming years, resulting in continued improving conditions. Significant Southeast Wisconsin Sale Transactions 3rd Qtr 212 Property Address City Size (SF) Sale Price Price PSF Buyer Seller 1955 Norwood Ct Racine 83,6 Undisclosed Undisclosed Racine Railroad Products Probuild Holdings Inc th Pl Kenosha 19,224 Undisclosed Undisclosed Centrealestate Klein-Dickert Milwaukee, Inc Significant Southeast Wisconsin Lease Transactions 3rd Qtr 212 Property Address City Leased (SF) Tenant Comments 42 39th Ave Kenosha 23, Undisclosed New lease Carlisle Ave Racine 2, Asset Recyclers New lease NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - THIRD QUARTER

14 I-9/Northwest POPULATION 212, POPULATION CHANGE +26.4% # INDUSTRIAL BUILDINGS 433 MARKET SIZE (SF) 25,886,93 VACANCY 2,463,355 SF (9.5%) 3Q12 NET ABSORPTION 246,5 YTD NET ABSORPTION 377,381 NEW SUPPLY (SF) 165,97 UNDER CONSTRUCTION (SF) 223,488 Hampshire Carpentersville East Dundee Elgin Submarket Trends 31 Vacancy Rate Net Absorption Asking Rents South Elgin 4, 2, -2, -4, Inventory By City 5% 5% 7% 1,5, 1,2, 9, 6, % Vacancy Rate (%) 73% Construction Deliveries Net Absorption (SF) Elgin Carpentersville South Elgin East Dundee Dundee, Genoa, Marengo, Hampshire, etc. 14% 12% 1% 8% 6% I-9/Northwest Overview The I-9/Northwest industrial submarket is attractive to companies looking for excellent interstate access, relatively low taxes, potential incentives and a strong labor pool. Most of the industrial inventory base in the submarket is located within minutes of a 4-way intersection with I-9. This serves to make the I-9/Northwest submarket a good distribution point for companies that are serving the I-9/upper-midwest supply chain. Relatively low taxes are a benefit throughout the submarket and TIF incentives are available in some areas. Additionally, the Elgin area provides an abundant, educated labor pool. Population along and near the Fox River has increased dramatically over the past decade. More than 73% of the total submarket inventory is located in Elgin. The third quarter brought the I-9/Northwest corridor its largest drop in vacancy in two years, as it dipped 4 basis points to 9.5%, the lowest since before the recession. This rate is 2.2% below the peak rate of 11.7% recorded in early-21. The improvement witnessed during the third quarter was due to the absorption of 246,5 SF of vacant space through leasing activity. Year-to-date, the area has witnessed 377,381 SF of positive net absorption 3, Vacancy has dropped 2.2% from its peak to 9.5%. the lowest rate the I-9/Northwest submarket has seen since 27. Pictured Above: River Ridge Rd in Elgin, where Japanese-based Hitachi Transport Systems leased 14,268 during the third quarter

15 Construction The submarket s newest building is a 165,97 SF speculative building in Elgin s Randall Point Business Park and was completed during the third quarter. Opus Development broke ground on a 223,488 SF build-to-suit facility for Maxzone Vehicle Lighting during the third quarter in West Dundee s Oakview Corporate Park. Available Space Profile.5 MM.9MM.9 MM.9 MM 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ I-9/Northwest Overview Transaction Activity The largest new lease of the third quarter was signed by Japanese-based company Hitachi Transport Systems, a logistics and transportation provider, with U.S. headquarters in Torrance, California. Hitachi s new lease of the 14,268 SF building at River Ridge Rd in Elgin makes this distribution center its second largest in the country # of Buildings Renewing its lease of 12,91 SF at Spectrum Dr in Elgin, Maxzone Vehicle Lighting Company will be occupying this space until its new build-to-suit facility of 223,488 SF is completed in West Dundee s Oakview Corporate Park. Maxzone purchased the site for its new facility during the third quarter for an undisclosed amount. 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Looking Forward The I-9/Northwest submarket has witnessed five consecutive quarters of improving conditions, and this trend is expected to continue. In these difficult economic times, this submarket is attractive to companies looking to take advantage of low taxes, as well as utilize the educated labor pool in communities along the Fox River. Significant I-9/Northwest Sale Transactions 3rd Qtr 212 Property Address City Size (SF) Sale Price Price PSF Buyer Seller Oakview Corporate Park West Dundee 223,488 Undisclosed Undisclosed Maxzone Vehicle Lighting Company The Opus Group 1635 Lancaster Rd South Elgin 18,95 $1,1, $61. Associated Bank Willow Tree LLC Significant I-9/Northwest Lease Transactions 3rd Qtr 212 Property Address City Leased (SF) Tenant Comments River Ridge Rd Elgin 14,268 Hitachi Transport Systems New lease Spectrum Dr Elgin 12,91 Maxzone Vehicle Lighting Company Lease renewal 149 Crispin Dr Elgin 4,425 Helukabel USA New lease 1675 Cambridge Dr Elgin 2,253 ValueTronics International, Inc Lease renewal NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - THIRD QUARTER

16 Northwest Cook POPULATION 524, POPULATION CHANGE +1.7% # INDUSTRIAL BUILDINGS 524 MARKET SIZE (SF) 28,431,27 VACANCY 2,114,24 SF (7.4%) 3Q12 NET ABSORPTION 5,816 YTD NET ABSORPTION 28,59 NEW SUPPLY (SF) UNDER CONSTRUCTION (SF) Submarket Trends Vacancy Rate Net Absorption Asking Rents East Dundee gin gin 2 19 Bartlett Streamwood Hoffman Estates Lake Zurich Barrington Palatine Arlington Heights Elk Grove Village Chicago Executive Airport Schaumburg Des Plaines Bloomingdale Wood Dale Buffalo Grove Mt. Prospect Ohare Int'l Airport F kli 75, 45, 15, -15, -45, -75, Inventory By City 1, 11% 8% 8% 8% Construction Deliveries , 6, 4, % 19% Vacancy Rate (%) 35% Net Absorption (SF) Schaumburg Mt. Prospect Palatine Barrington Bartlett Rolling Meadows Hoffman Estates, Streamwood, etc. 15% 13% 11% 9% 7% 5% Northwest Cook Overview The Northwest Cook submarket is a desirable business location for entrepreneurial owners and corporate managers who reside in the area s suburban communities. The submarket is conveniently located close to Chicago s O Hare International Airport and has excellent access to Chicago and the western suburbs using I-9, I-29 and Route 53. The user base generally consists of specialized manufacturing and service companies. Many international companies, particularly Asian and European, have located their North American headquarters here due to the proximity to the airport. Few distribution facilities exist relative to neighboring submarkets. Many users come from the comparatively cramped O Hare submarket looking for more space or a location closer to their residences, but don t want to move all the way west to Elgin or beyond. While high Cook County taxes may be prohibitive to some users, landlords continue to offer lower net rents to attract tenants. The third quarter brought a slight decrease in vacancy, as the rate dipped 1 basis points to 7.4%, back to where it was at the beginning of the year. Over the past three quarters this rate has leveled out compared to previous quarters when it was steadily dropping. Net absorption for the quarter was negligible, totaling only 5,816 SF, bringing the 212 tally 2, Vacancy dropped precipitously from a 13.8% peak three years ago, to 7.4% today, one of the lowest rates in the entire industrial market. Pictured Above: 635 Northwest Ave in Northlake, where maintenance solution company HD Supply renewed its lease for the 346,663 building during the third quarter

17 year-to-date to 28,59 SF. Although large leases were signed during the third quarter, they were primarily lease renewals, having no effects on the vacancy rate or absorption. Construction Largely a developed infill market, the majority of construction projects in that area are building additions. Available Space Profile.7 MM.6 MM.6 MM 1.2 MM.7 MM 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Northwest Cook Overview Transaction Activity The third quarter s most significant lease involved Trelleborg Sealing Solution leasing the 59,5 SF building located at 91 Phoenix Lake Ave in Streamwood. The company produces sealing and wear technology for hydraulic and engineered components # of Buildings The second largest lease belongs to Trelleborg Sealing Solutions, who extended its 59,5 SF lease on its 91 Phoenix Lake Ave facility in Streamwood. Trelleborg is a global engineering company who develops high-performance solutions that seal and protect in demanding industrial environments. 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Looking Forward Following a precipitous three-year drop from its peak of 13.8%, the Northwest Cook vacancy rate is now one of the lowest in the entire industrial market. This rate has remained relatively steady over the past three quarters, and will likely continue to experience slight adjustments over coming quarters as smaller spaces are leased or new vacancies come online. Large changes to this rate or periods of significant absorption are unlikely, as few large blocks remain available in the area. Significant Northwest Cook Sale Transactions 3rd Qtr 212 Property Address City Size (SF) Sale Price Price PSF Buyer Seller 6 University Dr Arlington Heights 81,389 $3,8, $47. Undisclosed Varian 157 Hecht Ct Bartlett 45,722 $3,425, $75. Dobrikov Family LLC STC Capital Bank Significant Northwest Cook Lease Transactions 3rd Qtr 212 Property Address City Leased (SF) Tenant Comments 91 Phoenix Lake Ave Streamwood 59,5 Trelleborg Sealing Solutions Lease extension 98 Remington Rd Schaumburg 11,1 Quality Paint Supplies Inc New lease S Elmhurst Rd Mount Prospect 6,26 M&M Fusion Inc New lease Italics denotes NAI Hiffman transaction NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - THIRD QUARTER

18 North Cook POPULATION 414, POPULATION CHANGE +1.7% # INDUSTRIAL BUILDINGS 79 Grove MARKET SIZE (SF) 45,842,324 VACANCY 2,886,153 SF (6.3%) 3Q12 NET ABSORPTION 162,459 YTD NET ABSORPTION 85,794 Wheeling 21 ago Executive Airport Northbrook Glencoe NEW SUPPLY (SF) UNDER CONSTRUCTION (SF) n s Morton Grove 94 Evanston Submarket Trends Vacancy Rate Net Absorption Asking Rents e Des Plaines Ohare Int'l Airport 14 Niles Park Ridge 9 41 Skokie Lincolnwood Chicago 5, 3, 1, -1, -3, -5, Inventory By City 8% 13% % 17% Vacancy Rate (%) 28% 2% Net Absorption (SF) Wheeling Niles Skokie Northbrook Morton Grove Evanston, Glenview, Lincolnwood, Northfield, etc. 1% 8% 6% 4% 2% % North Cook Overview Desirable for users seeking quick access to Chicago, major area expressways, and the northern suburbs, the North Cook submarket is also attractive to long-term Chicago-based users looking to stay close to the city while escaping Chicago congestion. The area has the advantage of an inventory of buildings with better specifications than many of the antiquated buildings found in the city of Chicago. It tends to be a primarily owner/user market, with limited leasing opportunities. The user base generally consists of service providers and light manufacturers who tend to remain in their locations for extended periods of time, resulting in limited transaction velocity in the submarket. The inventory base is mostly comprised of 196s 197sera buildings with lower ceilings and low parking ratios. Higher taxes may be a deterrent for some users, while others are willing to pay the price for the location. Construction Deliveries , 4, 2, The North Cook submarket saw its vacancy rate drop 5 basis points during the third quarter to 6.3%. This rate is 1.9% lower than its peak at 8.2% just over two years ago. Positive net absorption for the quarter totaling 162,459 SF brought the year-to-date total out of the red, tallying 85,794 SF absorbed. North Cook has now seen positive net Positive absorption totaling 162,459 SF brought the year-to-date total into positive territory, as leasing activity and user sales picked up. Pictured Above: 23 W Palatine Rd in Wheeling, a 172,779 SF building purchased by Arlington Heights-based Cano Packaging Corp during the third quarter

19 absorption in six of the last seven quarters, resulting in a gradually dropping vacancy rate. Construction The North Cook submarket has experienced very little new development in recent years due to its status as a mature market. Available Space Profile.2 MM.8 MM 1, 19, MM 2, 49,999 5, 99, MM 1, 199,999.9 MM 2,+ North Cook Overview Transaction Activity The third quarter s largest sale belongs to Cano Packaging Corp, who purchased the 172,779 SF manufacturing and warehouse facility at 23 W Palatine Rd in Wheeling. The Arlington Heightsbased packaging company will be doubling its production capabilities, along with improving warehouse and office space in order to meet customer demands. North Cook s largest lease was signed by Crimson AV, leasing 28,124 SF at Elmdale Ave in Glenview. Crimson AV specializes in professional grade mounting solutions for walls, ceilings, and pipes. They plan to use this facility as an additional warehouse and distribution center for its operations , 19,999 2, 49,999 5, 99,999 1, 199,999 # of Buildings 2,+ Looking Forward With a decreasing vacancy rate, and positive net absorption, conditions continue to improve in the North Cook submarket. Other than the slight setback during the first quarter, the submarket prides itself with one of the lowest vacancy rates in the industrial market. In the upcoming quarters, gradual absorption of space should continue as user sales and leasing remain active, due to companies expanding and relocating to the submarket. Significant North Cook Sale Transactions 3rd Qtr 212 Property Address City Size (SF) Sale Price Price PSF Buyer Seller 23 W Palatine Rd Wheeling 172,779 $3,3, $19. Cano Packaging Corp Owens & Minor Distribution Inc 12 W Palatine Rd Wheeling 129,4 $75, $6. Undisclosed Chef Solutions 3411 Woodhead Dr Northbrook 117, $2,387,5 $2. Molto Capital LLC Cole Taylor Bank 65 Anthony Tr Northbrook 97,841 Undisclosed Undisclosed Sitex Realty Group Private owner 11 E Palatine Rd Wheeling 64,38 $6,1, $95. Copart, Inc Allstate Insurance Company Significant North Cook Lease Transactions 3rd Qtr 212 Property Address City Leased (SF) Tenant Comments Elmdale Ave Glenview 28,124 Crimson AV New lease 1-5 Messner Dr Wheeling 25,463 Cadence Inc New lease N Capitol Dr Lincolnwood 2, STI Moving & Storage Lease renewal Wainwright Dr Northbrook 11,834 TMG Kreations New lease Commercial Ave Northbrook 11,83 Atlas Sales & Rental New lease Italics denotes NAI Hiffman transaction NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - THIRD QUARTER

20 Fox Valley POPULATION 111, POPULATION CHANGE +14.1% # INDUSTRIAL BUILDINGS 495 Elgin MARKET SIZE (SF) 32,225,276 VACANCY 3,4,41 SF (9.4%) South Elgin Streamwoo 3Q12 NET ABSORPTION -15,361 YTD NET ABSORPTION 288,345 NEW SUPPLY (SF) UNDER CONSTRUCTION (SF) 163, Dupage 59 Airport St Charles 64 Geneva West Chicago Ca Submarket Trends Batavia 38 Vacancy Rate Net Absorption Asking Rents Sugar 3 Grove North Aurora Aurora 88 Naperville 6, 3, -3, -6, , Vacancy Rate (%) Net Absorption (SF) Inventory By City 12% 35% West Chicago 25% St. Charles Batavia Geneva 28% Construction Deliveries ,5, 1,2, 9, 15% 13% 11% 9% 7% 5% Fox Valley Overview The Fox Valley submarket lies between the I-9/Northwest submarket to the north and the I-88 Corridor submarket to the south and has limited access to major expressways. It is primarily an owner/user market with leasing opportunities in the small to mid-size range. The user base generally consists of manufacturing companies that serve the area within close proximity to users homes. Much of the inventory is composed of mid-198s buildings in contrast to the modern bigbox distribution warehouses of neighboring submarkets. Many users choose to be in the Fox Valley submarket due to need and remain in the submarket long-term, resulting in limited transaction velocity. Following four quarters of improving conditions, the first sustained trend for the Fox Valley submarket in years, absorption was negligible during the third quarter, totaling negative 15,361 SF. As a result, the vacancy rate was unchanged at 9.4%, which is still 2.8% below its 12.2% peak in the third quarter of 21 and 1.5% below the rate recorded a year ago. The submarket, not as easily accessible as some of the more active submarkets, rarely sees more than 1, SF of absorption per quarter. 6, 3, Absorption was negligible during the third quarter, but the vacancy rate still remains 2.8% below its peak and 1.5% below a year ago. Pictured Above: 18 Averill Rd in Geneva, where current tenant Peacock Engineering has decided to expand the 243, SF building by an additional 163, SF, breaking ground during the third quarter

21 Construction Peacock Engineering Co is expanding its lease by adding 163, SF to its already existing 243, SF building in Geneva Business Park. The expansion is scheduled to be completed by early 213, and will create about 1 jobs as a result of the building addition. Transaction Activity The third quarter s largest sale transaction was an owner/user purchase by local company Corrosion Monitoring Services, Inc who bought the 18,913 SF building at 941 Enterprise Ct in Saint Charles. The buyer specializes in corrosion assessment and repair services for tubular air heaters over the past 3 years. Available Space Profile.5 MM.6 MM.7 MM.8 MM.7 MM , 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ # of Buildings Fox Valley Overview 2 Graham Packaging, based in York, Pennsylvania, leased 12, SF at W Hawthorne Ln in West Chicago with intent to further its distribution presence in the Midwest region. They will be using the facility as a warehouse, with additional space for office use. Graham Packaging s focus is the production of molded rigid plastic containers. 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Looking Forward The elevated transaction activity and significant absorption that pushed the vacancy rate down 2.5% over the past year-anda-half is uncommon for this smaller submarket where velocity tends to be lower due to owners and tenants staying long-term. This type of large adjustment is unlikely over coming quarters, but additional activity should help the vacancy rate gradually return to its pre-recession lows. Significant Fox Valley Sale Transactions 3rd Qtr 212 Property Address City Size (SF) Sale Price Price PSF Buyer Seller 941 Enterprise Ct Saint Charles 18,913 $1,134,78 $6. Corrosion Monitoring Services, Inc Corus Bank Significant Fox Valley Lease Transactions 3rd Qtr 212 Property Address City Leased (SF) Tenant Comments 18 Averill Rd Geneva 163, Peacock Engineering Lease expansion/building expansion W Hawthorne Ln West Chicago 12, Graham Packaging New lease 551 W Roosevelt Rd West Chicago 3, Undisclosed New lease N Raddant Rd Batavia 19, Cyberbond Adhesives New lease NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - THIRD QUARTER

22 Central DuPage POPULATION 392, POPULATION CHANGE +.7% # INDUSTRIAL BUILDINGS 1,93 Schaumburg MARKET SIZE (SF) 67,25,23 VACANCY 4,548,361 SF (6.8%) 3Q12 NET ABSORPTION 9,179 YTD NET ABSORPTION 734,49 NEW SUPPLY (SF) UNDER CONSTRUCTION (SF) 2 19 Bloomingdale Glendale Heights Addison Elk Grove Village Ohare Int'l Airport 294 Submarket Trends est Chicago 64 Carol Stream 355 Elmhurst 83 Vacancy Rate Net Absorption Asking Rents Glen Ellyn Lombard 88 W 1,5, 1,, 5, -5, -1,, Inventory By City 7% 9% 2,5, 2,, 1,5, 1,, 18% % 29% Vacancy Rate (%) 27% Construction Deliveries Net Absorption (SF) Addison Carol Stream Glendale Heights Elmhurst Hanover Park Bloomingdale, Lombard, Roselle, Villa Park, Wheaton 12% 1% 8% 6% 4% 2% Central DuPage Overview The well-positioned Central DuPage industrial submarket benefits from advantages including relatively low taxes, newer building inventory and an educated workforce. The recent completion of the I-355 extension, Chicago s newest expressway, has improved access to the area and spurred interest in the mature market. Users in the Central DuPage submarket vary by type and are not limited to primarily distribution like other nearby submarkets. Following years of inconsistent absorption, the Central DuPage submarket saw positive net absorption for the fourth quarter in a row during the third quarter of the year, as several new leases resulted in 9,179 SF of positive absorption, bringing the 212 year-to-date tally to 734,49 SF. As a result, the vacancy rate has continued to decrease, dropping 1 basis points in the past three months to 6.8%, down 3.7% from its peak of 1.5% at the end of 29. Thanks to another quarter of significant transaction activity, Central DuPage again boasts one of the lowest vacancy rates in the entire Chicago industrial market. This rate is even below the rates witnessed prior to the economic recession, indicitive of the interest and demand tenants and landlords alike have found in this premier industrial submarket. 5, The Central DuPage submarket boasts one of the lowest vacancy rates in the entire industrial market largely due to the elevated activity of the past year. Pictured Above: 5 Kehoe Blvd in Carol Stream, where COM2 Recycling Solutions leased 175, SF during the third quarter

23 Construction There are no projects currently under construction in the submarket, even as construction activity continues to pick up throughout the overall industrial market. Build-to-suit projects remain most likely until vacancy concerns diminish market-wide. Transaction Activity In the third quarter, the largest sale was completed by MPT Investors 1, LLC, a private investor who purchased the 453,361 SF facility at 35 S Rohlwing Rd in Addison. The building has been fully-leased to specialty paper company Domtar for several years, who renewed its existing lease this past summer. Available Space Profile.9 MM 2.2 MM 2. MM 1.6 MM 1.9 MM , 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ # of Buildings Central DuPage Overview COM2 Recycling Solutions, LLC leased the 175, SF building at 5 Kehoe Blvd in Carol Stream with the intent to use the space as a recycling collection center. The Carol Stream-based company specializes in the recycling of electronic goods and disposing of them properly. 2 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Looking Forward With significant transaction activity over the past year, the area s vacancy rate is the lowest the area has seen in several years. This activity is likely to continue for quarters to come as companies address expansion plans, consider the submarket for relocation, and look to take advantage of incentives and competitive lease rates being offered by area landlords. If recent trends continue, we could see a vacancy rate under 6% within a year s time. Significant Central DuPage Sale Transactions 3rd Qtr 212 Property Address City Size (SF) Sale Price Price PSF Buyer Seller 35 S Rohlwing Rd Addison 453,361 $2,5, $45. MPT Investors 1, LLC High Street Equity Advisors 125 Mercedes Dr Carol Stream 15, $5,741,472 $38. Freitag Family LP Berlin Industries Inc 171 Covington Dr Bloomingdale 11,63 $3,125, $28. Venture One Real Estate LLC GE Commercial Finance Significant Central DuPage Lease Transactions 3rd Qtr 212 Property Address City Leased (SF) Tenant Comments 5 Kehoe Blvd Carol Stream 175, COM2 Recycling Solutions, LLC New lease Carol Ct Carol Stream 135,58 Ingram Micro, Inc Sublease renewal 2249 W Windsor Ct Addison 99,555 Toynk Toys, LLC New lease 21 S Swift Rd Addison 85, Northstar Metal Products Sublease 41 Gary Ave Roselle 83,499 US Tire & Exhaust New lease Lies Rd Carol Stream 72,445 Ingram Entertainment Inc Lease renewal N Dupage Ave Lombard 59,682 American Excelsior, Inc Lease renewal Italics denotes NAI Hiffman transaction NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - THIRD QUARTER

24 O Hare POPULATION 136, POPULATION CHANGE -2.9% # INDUSTRIAL BUILDINGS 1,72 MARKET SIZE (SF) 99,976,33 VACANCY 9,911,731 SF (9.9%) 3Q12 NET ABSORPTION -258,116 mburg 72 Heights 9 Des Plaines Morto Grov N YTD NET ABSORPTION 858,151 NEW SUPPLY (SF) UNDER CONSTRUCTION (SF) 229,841 Itasca Elk Grove Village Ohare Int'l Airport Park Ridge Submarket Trends Vacancy Rate Net Absorption Asking Rents ngdale dale ghts Bensenville Addison Wood Dale Franklin Park Elmhurst Melrose 1,5, 9, 3, -3, -9, ,5, Vacancy Rate (%) Net Absorption (SF) Inventory By City 9% 1% Elk Grove Village 11% Des Plaines 42% Bensenville Itasca 18% Wood Dale Rosemont 18% Construction Deliveries ,2, 9, 6, 15% 13% 11% 9% 7% 5% O Hare Overview The O Hare submarket is unique due to its close proximity to O Hare International Airport and its central location at the crossroads of Chicago s expressway system. The O Hare submarket holds the most industrial inventory of all of the Chicagoland submarkets. Elk Grove Village alone is the nation s largest industrial park, boasting more than 4 million SF of industrial and flex space. Many of the buildings in the submarket are older and functionally obsolete. Redevelopment and construction has slowed dramatically since the economic downturn took hold in 28. Market conditions had been improving in the O Hare submarket for nearly the past two years, but experienced a setback during the third quarter, as negative absorption resulting from significant new vacancies pushed the vacancy rate up 2 basis points to 9.9%. The largest new vacancy was due to Wirtz Beverage Company departing the 36,918 SF distribution building located at 11 Foster Ave for its new 64,97 SF build-to-suit facility in Cicero. Another new vacancy occurred when Pets International moved out of its 169, SF facility at 185 Touhy Ave in Elk Grove Village. Despite the setback, the vacancy rate remains 3, Despite a setback during the third quarter, conditions are expected to gradually improve over the coming quarters. Pictured Above: 22 Pratt Blvd in Elk Grove Village, where Main Steel Polishing Company, Inc leased 238,681 SF during the third quarter

25 nearly 3% below its peak in 21. Year-to-date net absorption is still strongly positive, totaling 858,151 SF, one of the more impressive tallies in the entire industrial market. Construction Construction continues on the 229,841 SF build-to-suit facility for international freight forwarder Yusen Logistics at the former Johnson & Johnson site at 13 Busse Rd in Elk Grove Village. Construction is expected to be completed by Spring 213. Transaction Activity The third quarter s largest sale involved Sitex Realty Group, LLC purchasing a portfolio of seven buildings in Wood Dale totaling 28,947 SF. The buildings, located on Sivert Drive and Lively Boulevard, range in size from 16,17 SF to 64,8 SF. Available Space Profile 4.5 MM MM 1.8 MM 3.4 MM 3.9 MM 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ # of Buildings O Hare Overview New Jersey-based Main Steel Polishing Company, Inc leased the 238,681 SF building at 22 Pratt Blvd in Elk Grove Village. This will be its fourth location in Illinois, joining Bartlett, Schiller Park, and Wheeling as the other midwest facilities. Processors of stainless steel and aluminum, Main Steel looks to use this facility as an additional production and transportation warehouse. 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Looking Forward Despite a setback during the third quarter, steady demand and improving market conditions over the past two years suggest that the future continues to look bright for the O Hare area. One of Chicago s premier industrial submarkets, users will continue to be drawn to the area s diversity of inventory, and the proximity to O Hare airport and area expressways. Significant O Hare Sale Transactions 3rd Qtr 212 Property Address City Size (SF) Sale Price Price PSF Buyer Seller 7-building portfolio Wood Dale 28,947 $12,5,4 $43. Sitex Realty Group, LLC American Realty Advisors 22 Pratt Blvd Elk Grove Village 274,51 $1,4, $38. Torburn Partners Material Sciences Corp 1666 E Touhy Ave Des Plaines 141,754 $3,66, $26. Hu-Friedy Mfg Co, Inc Lawson Products, Inc 1951 Landmeier Rd Elk Grove Village 41,225 $1,1, $27. SINA International CenterPoint Properties Significant O Hare Lease Transactions 3rd Qtr 212 Property Address City Leased (SF) Tenant Comments 22 Pratt Blvd Elk Grove Village 238,681 Main Steel Polishing Company, Inc New lease 13 Busse Rd Elk Grove Village 229,841 Yusen Logistics Build-to-suit lease 225 Spring Lake Dr Itasca 7,76 Stephen Gould Corp. New lease Supreme Dr Bensenville 63,618 Crane Worldwide Logistics New lease Bryn Mawr Ave Itasca 62,761 Digitek New lease 185 Greenleaf Ave Elk Grove Village 58,627 Streamline Transport Solutions LLC New lease Italics denotes NAI Hiffman transaction NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - THIRD QUARTER

26 West Cook POPULATION 25, POPULATION CHANGE -1.9% # INDUSTRIAL BUILDINGS 74 MARKET SIZE (SF) 6,11,284 VACANCY 5,86,23 SF (9.7%) 3Q12 NET ABSORPTION -21,112 YTD NET ABSORPTION 715,286 NEW SUPPLY (SF) UNDER CONSTRUCTION (SF) Submarket Trends Vacancy Rate Net Absorption Asking Rents k Grove Village Bensenville 29 Elmhurst Ohare Int'l Airport Franklin Park Melrose Park Bellwood Schiller Park Niles 43 Oak Park Skokie 9 94 Chicago 1,, 6, 2, -2, -6, -1,, Inventory By City 12% 5% 8% 9% 1,5, 1,2, 9, % Vacancy Rate (%) 36% Construction Deliveries Net Absorption (SF) Franklin Park Melrose Park Bellwood Schiller Park Berkeley 15% 13% 11% 9% 7% 5% Harwood Heights, Hillside, Maywood, Norridge, River Grove West Cook Overview The West Cook submarket draws companies from the city of Chicago looking for a more functional building and additional amenities compared to the aging, often obsolete inventory of properties in Chicago. Additionally, companies migrate to the area from the nearby O Hare submarket where interstate and airport access is similar, but rental rates tend to be higher. The West Cook submarket benefits from good access to the city of Chicago, close proximity to area interstates and rail providers and relatively low rental rates. It is primarily an owner/ user market, but leasing opportunities have increased as institutional and private owners have entered the submarket. Following five consecutive quarters of improving conditions, absorption turned slightly negative during the third quarter. This was largely due to the demolition of the former Unilever plant in Franklin Park consisting of two industrial building totaling 282,5 SF. The buildings were razed to make room for the new Franklin Park police station. Net absorption totaled negative 21,112 SF for the quarter, but the area s vacancy rate continued to drop, dipping to 9.7% by the end of September, down 4 basis point from last quarter and nearly 2% the rate a year ago. 6, 3, Since the West Cook recovery began about a year ago, 1.2 million SF of vacant space has been absorbed, pushing vacancy down to 9.7%. Pictured Above: W North Ave in Melrose Park, a 454,91 SF industrial building purchased by KTR Capital Partners for $2.5 million in August

27 Construction There are no ongoing construction projects in the West Cook submarket. The former Central Grocers site, a 24.8 acre parcel, is still awaiting a build-to-suit opportunity and can accommodate a building up to 7, SF in size. Available Space Profile.5 MM 1.1 MM 3.3 MM 2.3 MM 1, 19,999 2, 49,999 5, 99,999 1, 199,999 West Cook Overview Transaction Activity 1.9 MM 2,+ Private equity firm KTR Capital Partners purchased the 454,91 SF building at W North Ave in Melrose Park at the end of August. The modern building was about 84% leased at the time of the sale to two tenants. 5 4 # of Buildings 3 Industrial distribution company HD Supply inked the largest lease during the third quarter, renewing its existing lease and expanding by an additional 79,288 SF, bringing its total space to 346,663 at its 635 Northwest Ave facility in Northlake. The space was being used by WEG Electric Motors Corp, who moved its operations to Bolingbrook , 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Looking Forward Vacancy in the West Cook submarket responded quickly to the economic downturn in late 28 and early 29, then held near its peak around 12% for about two years before finally beginning to recover about a year ago. Since then, more than 1.2 million SF of vacant space has been steadily absorbed and the vacancy rate has responded favorably. Despite slightly negative absorption during the most recent quarter due to the demolition of two buildings, sales and leasing activity continued in the area. Should recent trends hold, the submarket will return to prerecession levels sometime in 213. Significant West Cook Sale Transactions 3rd Qtr 212 Property Address City Size (SF) Sale Price Price PSF Buyer Seller W North Ave Melrose Park 454,91 $2,5, $45. KTR Capital Partners TIAA-CREF 16 W Belmont Ave Franklin Park 26,4 $1,2, $49. Orchard Partners/James Campbell Company Principal Real Estate Investors 1144 Addison Ave Franklin Park 111,588 $3,35, $3. Brennan Investment Group LLC Duke Realty Corporation 21 N 17th Ave Melrose Park 3,185 $975, $32. Caroles Schanstra SML Industries, Inc Significant West Cook Lease Transactions 3rd Qtr 212 Property Address City Leased (SF) Tenant Comments 635 Northwest Ave Northlake 346,663 HD Supply Lease renewal/expansion 5 Proviso Dr Berkeley 25,49 Diversified Entities LLC Lease renewal 25 N Mannheim Rd Hillside 53,21 Wipeco Lease renewal 152 N 25th Ave Melrose Park 3, Door 2 Door New lease 94 W King St Franklin Park 25,125 Tri-Starr Management Services, Inc Lease renewal Italics denotes NAI Hiffman transaction NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - THIRD QUARTER

28 Chicago POPULATION 2,695, POPULATION CHANGE -6.9% # INDUSTRIAL BUILDINGS 2,85 MARKET SIZE (SF) 214,242,7 VACANCY 19,165,55 SF (9.%) 3Q12 NET ABSORPTION 317,824 YTD NET ABSORPTION 448,881 NEW SUPPLY (SF) mburg 29 ngdale 355 Elk Grove Village Wood Dale Elmhurst Des Plaines Ohare Int'l Airport Franklin Park Melrose Park Grove Evanston 94 Niles Skokie 41 Chicago North Oak Park UNDER CONSTRUCTION (SF) Cicero Submarket Trends Burr Ridge La Grange 55 Chicago Midway Airport Bedford Park Bridgeview 41 Chicago South Vacancy Rate Net Absorption Asking Rents ngbrook ville 355 Palos Heights 294 Alsip 57 Blue Island 94 9 G /Chi Ai 2 MM 1 MM -1 MM -2 MM MM Vacancy Rate (%) Net Absorption (SF) Construction Deliveries ,, 1,5, 1,, 5, % 1% 9% 8% 7% 6% Chicago Overview The industrial market within the city limits is as diverse as its residents. Much of the modern development in recent years has taken place in neighborhoods close to downtown, such as Pilsen/Bronzeville (Near South), Kinzie Corridor/Avondale (Near North), and Back of the Yards/Crawford (Near Southwest). Typical firms that take advantage of this proximity to densely-populated areas include food and home improvement-related distribution companies. There are still many industrial companies that operate in less-functional buildings, but make the trade-off for a readily available labor pool. Since 1987, the City of Chicago has seen a slowing of the erosion of its industrial base, through the creation of Planned Manufacturing Districts (PMDs). These PMDs make it nearly impossible to change the zoning, which has kept the underlying cost of industrial land low. Companies that would have otherwise been forced to greenfield developments in the suburbs have remained within Chicago city limits. Total City of Chicago Sale Transactions 12 MM 1 MM 8 MM 6 MM 4 MM 2 MM Total SF Sold Total SF Sold (Annualized) # Total # of Sales Average Price PSF $7. $6. $5. $4. $3. $2. Source: NAI Hiffman & CoStar For the second quarter in a row the Chicago submarket experienced positive net absorbtion, pushing the vacancy rate down 26 basis points this quarter to 9.1%. The Chicago industrial market witnessed negative absorption for 12 of the 15 quarters since the beginning of 29. The Chicago industrial submarket recorded the fi rst consecutive periods of positive absorption in four years. Pictured Above: 3348 S Pulaski Rd, where the Chicago Sun Times leased 118,443 SF during the third quarter

29 However, the vacancy rate hasn t been significantly affected, hovering between 9% and 1% the entire time. The third quarter s 9.1% vacancy rate is the lowest the city has seen since 29. Construction Given the limited available space, development will likely remain Available Space Profile 2. MM 3.8 MM 11.3 MM 5.6 MM 1, 19,999 2, 49,999 5, 99,999 1, 199,999 Chicago Overview limited, aside from any building expansions and speciality construction projects. 6.9 MM 2,+ Transaction Activity The third quarter s largest sale involved The Lockup Self Storage company purchasing the 98,3 SF building at 19 N Narragansett Ave. The personal storage company plans to turn the former warehouse into self-storage units. This will be The Lockup Self Storage s thirteenth facility in Illinois, with sixteen additional locations spread out through Connecticut, Florida, Hawaii, Massachusetts, Minnesotta, New Jersey and New York , 19,999 2, 49,999 5, 99,999 1, 199,999 # of Buildings 2,+ The Chicago Sun Times signed the largest lease of the third quarter, leasing 118,443 SF at 3348 S Pulaski Rd. The Sun Times will use the manufacturing space to continue production and distribution of its newspaper. Looking Forward Although the city has recorded the first consecutive periods of positive absorption in four years, the unique product in the industrial parts of the city and the type of users interested in calling Chicago home suggests that major adjustments to the area s vacancy rate are unlikely. Significant Chicago Sale Transactions 3rd Qtr 212 Property Address Size (SF) Sale Price Price PSF Buyer Seller 19 N Narragansett Ave 98,3 $1,332,5 $14. DB Acquisitions Wintrust Financial Corporation 3 N Oakley Blvd 31,2 $1,475, $47. Bitco Realty LLC HCB Development I, LLC 15 W Cortland St 24, $94, $39. Aleksandra Enterprises Russian Pointe Dance Boutique Significant Chicago Lease Transactions 3rd Qtr 212 Property Address Leased (SF) Tenant Comments 3348 S Pulaski Rd 118,443 Chicago Sun Times New lease 15 E 97th St 9,624 MWD Logistics Lease renewal 41 W 76th St 54, Engineered Recycling Co LLC New lease 231 W 57th St 38,812 Stainless Sales Corp New lease 27 W Roosevelt Rd 23, Sewer Tech New lease W Carroll Ave 19,5 USPS Lease renewal 15 W Carroll Ave 7, Towerstream New lease Italics denotes NAI Hiffman transaction NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - THIRD QUARTER

30 3 59 I-88 Corridor POPULATION 578, POPULATION CHANGE +25.8% # INDUSTRIAL BUILDINGS 771 MARKET SIZE (SF) 61,834,957 VACANCY 5,115,37 SF (8.3%) 3Q12 NET ABSORPTION 347,961 YTD NET ABSORPTION 1,24,924 NEW SUPPLY (SF) UNDER CONSTRUCTION (SF) 177,357 St Charles 29 Dupage Carol Stream Airport Elmhurst West Chicago 355 Batavia Oak Brook North Aurora Lisle Downers Naperville Grove Sugar Grove 53 Aurora 34 Woodridge Montgomery 55 3 Bolingbrook Submarket Trends Vacancy Rate Net Absorption Asking Rents 1,, 6, 2, -2, -6, ,, Vacancy Rate (%) Net Absorption (SF) Inventory By City 15% 13% 11% 9% 7% 5% I-88 Corridor Overview The I-88 Corridor industrial submarket saw increased demand and speculative development over the previous five years due to the lack of land for development in feeder submarkets such as Central DuPage and West Cook. Developers were drawn to the large available land sites and easy access to major expressways that the I-88 submarket has to offer. This rapid pace of development has stopped over the past three years as obtaining project financing became difficult, vacancy has increased and demand has been limited. 7% 15% Construction Deliveries ,5, 2,, 1,5, 1,, 17% 18% 43% Aurora Naperville Montgomery Downers Grove Oswego, Westmont, North Aurora, Hinsdale, Lisle, etc. The I-88 Corridor has largely recovered from the economic recession, and the area s vacancy rate has returned to pre-recession levels below 9%, ending the third quarter at 8.3%. Vacancy peaked at 14.2% in the final quarter of 29, and has declined nearly 6% since due to positive absorption being recorded during 1 of the past 11 quarters. Demand has clearly returned to the I-88 Corridor, as evidenced by more than 1.2 million SF of vacant space being absorbed through the first three quarters of 212 and 347,961 SF of net absorption during the third quarter alone. One of the first submarkets to turn around from the negative effects of the recession, the I-88 Corridor is also one of the first submarkets to fully recover. 5, The I-88 Corridor has recovered, evidenced by the vacancy rate returning to pre-recession levels below 9%. Pictured Above: 2275 W Diehl Rd in Naperville, a 4,1 SF building purchased by Handi-Foil Corporation in July for its warehousing and distribution needs

31 Construction Midwest Warehouse began construction on a 177,357 SF addition to their facility located at 2885 Diehl Road in Napervile. The new expansion will add 53 more dock doors, 4 new trailers parking positions, 3 new jobs and 6,2 SF of office space. Upon completion, the entire facility will total 478,917 SF. Transaction Activity The largest sale of the third quarter involved Handi-Foil Corporation purchasing the 4,1 SF building at 2275 W Diehl Rd in Naperville. The Wheeling-based company is a manufacturer of recyclable aluminum products, and plans to use the facility for warehousing and distribution. The second largest sale of the third quarter belongs to Magnetrol International, Inc, who purchased the 221,149 SF facility at 75 Enterprise St in Aurora. The Downers Grove-based company manufactures level and flow controls, used for industrial process measurement. Available Space Profile MM.7 MM 1.8 MM 1.2 MM 1, 19, MM 2, 49,999 5, 99,999 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ 1, 199,999 # of Buildings 2,+ I-88 Corridor Overview KapStone Paper and Packaging Corporation, a pulp and paper company based in Northbrook, leased the 192,338 SF facility located at 2759 N Eola Dr in Aurora. Looking Forward The I-88 Corridor submarket has continued to be an example of the increasing demand for industrial space seen throughout the suburban industrial market. With vacant space being absorbed during ten of the last eleven quarters, the demand and momentum seen in strong submarkets like the I-88 Corridor has begun to spill over into the rest of the Chicago industrial market. Significant I-88 Corridor Sale Transactions 3rd Qtr 212 Property Address City Size (SF) Sale Price Price PSF Buyer Seller 2275 W Diehl Rd Naperville 4,1 $16,6, $41. Handi-Foil Corporation BlackRock, Inc 75 Enterprise St Aurora 221,149 $1,75, $49. Magnetrol International, Inc GCR Corporation 34 Shuman Blvd Naperville 84, $2,7, $32. APG Orochem Inc Dow Jones & Company, Inc Mountain St Aurora 72,47 $1,75, $24. Joseph T Khouri Oasis Lifestyle Significant I-88 Corridor Lease Transactions 3rd Qtr 212 Property Address City Leased (SF) Tenant Comments 2759 N Eola Rd Aurora 192,338 KapStone Paper and Packaging Corporation New lease 3565 Butterfield Rd Aurora 58,24 PDM Inc New lease 615 N Enterprise St Aurora 41,99 Surface Guard Lease renewal 256 White Oak Cir Aurora 36,127 Shorr Packaging Corp. New lease 88 N Enterprise St Aurora 34, Shorr Packaging Corp. Lease renewal/expansion 3553 Butterfield Rd Aurora 3,92 Nissan New lease Italics denotes NAI Hiffman transaction NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - THIRD QUARTER

32 I-55 Corridor POPULATION 243, POPULATION CHANGE +37.1% # INDUSTRIAL BUILDINGS 655 MARKET SIZE (SF) 8,699,86 VACANCY 5,316,646 SF (6.59%) 3Q12 NET ABSORPTION 965,726 YTD NET ABSORPTION 1,395,939 a Naperville 53 Downers Grove Woodridge Hinsdale Burr Ridge 294 Wi Spr NEW SUPPLY (SF) 362,5 UNDER CONSTRUCTION (SF) 649, Bolingbrook Submarket Trends 3 55 Romeoville Vacancy Rate Net Absorption Asking Rents Plainfield MM 3 MM 2 MM 1 MM MM Vacancy Rate (%) Net Absorption (SF) 15% 12% 9% 6% 3% % I-55 Corridor Overview Of all of the Chicago area industrial submarkets, the I-55 Corridor has seen the most activity and development interest over the past several years. As a result, the majority of the available land parcels are either already developed or are controlled by developers, rendering the I-55 Corridor an infill market with little additional land available for significant new development. Inventory By City 1 MM 8 MM 6 MM 4 MM 2 MM 9% 4% 4% 12% 2 35% % Bolingbrook Romeoville Woodridge Lemont Plainfield Construction Deliveries Burr Ridge, Forest View, Willowbrook The I-55 Corridor vacancy rate decreased by 8 basis points to 6.6% during third quarter as 965,726 SF was absorbed through sizeable new leases and user sales. This is, by far, the lowest vacancy rate the I-55 Corridor has seen in many years. A year ago, this rate was nearly a full percentage point higher at 7.5%. At its peak, prior to a period when the signing of several significant leases resulted in the absorption of more than 5 million SF and a quick drop in vacancy, the area s vacancy rate hovered around 14% for much of 28 and 29. Although this rate is now admirably low, several large spaces are listed as available, but not vacant, as short-term tenants are occupying them or tenants terms are soon to expire. If these large available spaces aren t filled by the time the tenants move out, the vacancy rate may increase quickly. About 13.8% of the market is listed as available for lease or sale. Although the submarket boasts a 6.6% vacancy rate, 13.8% of the market remains available for sale or lease. Pictured Above: 981 Adam Don Pky in Woodridge s Union Pointe Business Park, a build-to-suit project for Edward Don & Company completed during the third quarter and purchased by UBS Realty Investors LLC for $27.1 million

33 Construction Foodservice equipment distributor Edward Don & Company s new 362,5 SF build-to-suit in the new Union Pointe Business Park was completed in August. Construction continues on a 64,124 SF speculative facility in Romeoville s DCT Boldt Park. The cross-dock facility will be adjacent to the I-55/Weber Road interchange and is expected to be completed in December. Available Space Profile.6 MM.9 MM 1.5 MM 6.6 MM 2.1 MM 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ I-55 Corridor Overview Transaction Activity The largest sale of the quarter involved UBS Realty Investors LLC purchasing Edward Don & Company s recently completed 362,5 SF build-to-suit headquarters and distribution center from developer McShane Development Company # of Buildings Automotive third-party logistics company Reviva Logistics LLC leased 354,211 SF space at 1 Veterans Pky in Bolingbrook. Also in Bolingbrook, Dallas-based company Lennox leased 312,25 SF at W Crossroads Pky. The company plans to use the facility as a distribution center for its heating and air conditioning solutions. 1 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Looking Forward The desirable location, plethora of high-quality modern product and big-box options was the catalyst to one of the fastest submarket recoveries witnessed in the Chicago industrial market. Few contiguous spaces greater than 3, SF remain in the area, suggesting the pace of improvement will be slower over the coming quarters. Significant I-55 Corridor Sale Transactions 3rd Qtr 212 Property Address City Size (SF) Sale Price Price PSF Buyer Seller 981 Adam Don Pky Woodridge 362,5 $27,1, $75. UBS Realty Investors LLC McShane Development Company 93 Carlow Dr Bolingbrook 145, $5,945, $41. Astro Plastic Containers, Inc IDI Main St Lemont 33,4 $2,95, $88. Unlimited Carrier, Inc Interstate Realty, Inc Significant I-55 Corridor Lease Transactions 3rd Qtr 212 Property Address City Leased (SF) Tenant Comments 1 Veterans Pky Bolingbrook 354,211 Reviva Logistics LLC New lease W Crossroads Pky Romeoville 312,25 Lennox New lease 131 Internationale Pky Woodridge 263,7 Provide Commerce New lease 2 Gateway Ct Bolingbrook 163,47 WEG Electric Motors Corp. New lease 11 E Crossroads Pky Bolingbrook 111,95 Sonoco New lease 485 Crossroads Pky Bolingbrook 67,878 Freeze Dried Produce New lease Italics denotes NAI Hiffman transaction NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - THIRD QUARTER

34 South Cook POPULATION 716, POPULATION CHANGE +.5% # INDUSTRIAL BUILDINGS 1,126 MARKET SIZE (SF) 85,81,394 VACANCY 9,195,95 SF (1.7%) 3Q12 NET ABSORPTION 239,598 YTD NET ABSORPTION 8,36 NEW SUPPLY (SF) UNDER CONSTRUCTION (SF) 171,67 Submarket Trends Vacancy Rate Net Absorption Asking Rents Woodridge le Tinley Park Mokena Bedford Park Bridgeview Alsip Palos Heights Chicago Midway Airport 5 Matteson 57 Blue Island 1 1 Park Forest 83 South Holland Sauk Village Gary/Chi Hammond 8 94 Schererville Monee is n a 2 MM 1 MM -1 MM -2 MM Inventory By City 2,5, 2,, 1,5, % Vacancy Rate (%) 26% 5% 8% 11% 14% Bedford Park Alsip Construction Deliveries Net Absorption (SF) Chicago Heights Bridgeview South Holland Other Southern Cook Communities 15% 13% 11% 9% 7% South Cook Overview The South Cook submarket is one of the Chicago metropolitan area s largest in terms of geographic size and total square footage. The area benefits from a solid mix of manufacturing and distribution facilities due to an abundance of skilled, educated labor, and excellent access to several major expressways, train lines and public transportation. The submarket consists of primarily older product with scattered modern infill developments of around 2 million SF in Bedford Park and additional projects in Alsip and Sauk Village. Ownership is mixed, including institutional, owner/user and both national and local private owners. While its location close to Chicago is key, Cook County taxes can be a financial burden. Since its peak of 13.6% during in the first quarter of 29, the South Cook corridor vacancy rate has gradually declined by 2.9%. With a current rate of 1.7%, the third quarter saw a 3 basis point decrease between June and September. Net absorption of vacant space was positive for the fifth consecutive quarter, totaling 239,598 SF, bringing the 212 tally to 8,36 SF. Eight of the past nine periods have witnessed positive absorption, a sign that demand is returning. 1,, 5, The South Cook vacancy rate has gradually declined for the past three-and-a-half years, dipping to 1.7% at the end of September. Pictured Above: 218 S Cicero Ave in Matteson, a 39,744 SF warehouse building purchased by Wisconsin-based Warehouse Specialists Inc in September

35 Construction Construction continues on a new corporate headquarters facility for Polmax Transportation Co. The 171,67 SF cross-docked build-to-suit facility is being built in Alsip. Transaction Activity Wisconsin-based Warehouse Specialists Inc purchased the 39,744 SF building at 218 S Cicero Ave in Matteson. Its third facility in Illinois, Warehouse Specialists Inc has provided logistics, warehousing, distribution, and transportation services for nearly fifty years. Available Space Profile.9 MM 1.8 MM 4.7 MM 2.2 MM 2.8 MM 1 8 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ # of Buildings South Cook Overview 6 The largest new lease of the third quarter belongs to Exhibitors Carpet Service, who leased 8,239 SF at 6112 W 73rd St in Bedford Park. With the lease, the specialty flooring company adds its second Chicago-land location, in addition to its location in Las Vegas. The facility is to be used for manufacturing, office space and will provide a showroom for customers , 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Custom rigid plastic container producer Plastipack Packaging Inc renewed its lease for 24,586 SF at S Laramie Ave in Alsip during the third quarter. Looking Forward As U.S. exports continue to increase and manufacturing activity picks up nationally, many of Chicago s industrial submarkets, including South Cook, will see increased demand for warehouse, distribution and manufacturing space. Vacancy has been declining gradually in the submarket for more than three years, and this trend is expected to continue. South Cook Sale Transactions 3rd Qtr 212 Property Address City Size (SF) Sale Price Price PSF Buyer Seller 218 S Cicero Ave Matteson 39,744 $4,14, $11. Warehouse Specialists Inc Gallagher Realty Inc 51 W 73rd St* Bedford Park 18,546 Portfolio sale* $66.* Brennan Investment Group/Gatehouse Bank AIC Ventures 721 S Leamington Ave* Bedford Park 16,8 Portfolio sale* $66.* Brennan Investment Group/Gatehouse Bank AIC Ventures South Cook Lease Transactions 3rd Qtr 212 Property Address City Leased (SF) Tenant Comments S Laramie Ave Alsip 24,586 Plastipak Packaging Inc Lease renewal 6112 W 73rd St Bedford Park 8,239 Exhibitors Carpet Service New lease 7447 S Central Ave Bedford Park 55,652 American Living Style (Beverly Furniture) New lease S Meade Ave Bedford Park 24, New lease W Armory Dr South Holland 21,849 Brook Crompton New lease *Part of larger portfolio sale Italics denotes NAI Hiffman transaction NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - THIRD QUARTER

36 59 I-8/Joliet Corridor POPULATION 447, POPULATION CHANGE +45.5% # INDUSTRIAL BUILDINGS 615 MARKET SIZE (SF) 63,653,294 VACANCY 7,275,19 SF (11.4%) 3Q12 NET ABSORPTION 61,87 YTD NET ABSORPTION 1,45,3 NEW SUPPLY (SF) 265, UNDER CONSTRUCTION (SF) 2,741,32 Submarket Trends Vacancy Rate Net Absorption Asking Rents le Ottawa Seneca 47 North Aurora 113 Aurora Plainfield Tinley Park 3 6 Shorewood Joliet Mokena 3 New Lenox 53 Minooka Channahon Elwood Downers 55 Grove Bolingbrook A Kankakee 2. MM 1.5 MM 1. MM.5 MM MM Vacancy Rate (%) Net Absorption (SF) Inventory By City 25% 21% 17% 13% 9% 5% I-8/Joliet Corridor Overview The I-8/Joliet Corridor submarket has historically catered to multi-state big box distribution. Its access to I-8 and I-55 position the corridor well for distribution operations. In addition, the nation s largest inland port is located in Joliet and Elwood. This intermodal development, also known as CenterPoint Intermodal Center, has remained a bright spot not only in the corridor, but for the entire Chicago market. CenterPoint Intermodal Center now offers intermodal service as well as direct rail service with both the BNSF and Union Pacific Railroads. Construction Deliveries MM 6 MM 4 MM 27% 6% 8% 15% 44% Joliet Elwood Minooka Tinley Park Ottawa, Mokena, New Lenox, Shorewood, Frankfort, etc. The I-8/Joliet Corridor vacancy rate continued to decrease through the third quarter, dropping 6 basis points to 11.4%, the lowest rate the submarket has seen in several years. Net absorption for the quarter totaled 61,87 SF due to lease expansions and new leases being signed. Since vacancy peaked at 2.7% in early 29, more than 7 million SF of vacant space has been absorbed, with 1.4 million SF of absorption through the first three quarters of 212 alone. Construction The 265, SF build-to-suit facility for Resource Management Company (RMC) in the CenterPoint Intermodal Center-Elwood was 2 MM Demand, lack of available large contiguous blocks and the area s intermodal development should continue to drive new construction. Pictured Above: 278 McDonough St in Joliet, a 476,965 SF distribution building fully leased to OHL purchased by Exeter Property Group for $23.1 million in July

37 completed during the third quarter. There are three ongoing construction projects in the submarket, with two taking place within the area s intermodal developments. The largest of the projects is a 1.6 million SF build-to-suit distribution facility for Home Depot in the CenterPoint Intermodal Center-Joliet. A 1 million SF speculative facility broke ground during the third quarter, the first building in the new Clarius Park Joliet business park on Youngs Road. Finally, a 121,8 SF speculative facility is now underway in Lockport s Heritage Crossing Corporate Center. Available Space Profile.6 MM.7 MM.9 MM 1.2 MM 7.2 MM 1 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ # of Buildings I-8/Joliet Corridor Overview Transaction Activity 8 The largest sale transaction of the third quarter involved 6 Exeter Property Group buying the 476,965 SF facility at McDonough St in Joliet. The facility is fully leased to OHL. 2 Kraft Foods renewed its lease of 86,4 SF at 1 Prologis Pky in Morris. New Jersey-based company NFI renewed, and expanded its space in its building located at S Baseline Rd in Elwood to occupy a total of 213,997 SF. NFI uses this facility as a Midwest hub for its logistics, distribution, and transportation services. 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Looking Forward The many logistical, locational and cost-effective advantages to doing business within the I-8/Joliet Corridor continue to draw companies to its modern product and ample land for development. Demand, lack of available large contiguous blocks and the area s intermodal developments should continue to drive new construction in the area, of both build-to-suit and speculative projects. I-8/Joliet Corridor Sale Transactions 3rd Qtr 212 Property Address City Size (SF) Sale Price Price PSF Buyer Seller 278 McDonough St Joliet 476,965 $23,1, $48. Exeter Property Group Lincoln Property Company W Riverside Dr Channahon 52, $1,425, $27. Flex Capital H&H Machinery Movers, Inc I-8/Joliet Corridor Lease Transactions 3rd Qtr 212 Property Address City Leased (SF) Tenant Comments 1 Prologis Pky Morris 86,4 Kraft Foods Lease renewal 251 Laraway Rd Joliet 275,68 Acer America Corporation Lease renewal S Baseline Rd Elwood 213,997 NFI Lease renewal/expansion 231 Ellis Ct Joliet 134, NGL Logistics Lease renewal/reduction 27 McDonough Rd Joliet 113,166 Rehrig Pacific Logistics Lease extension/expansion 351 Corporate Dr Joliet 59,52 International Transload Logistics New lease W Haven Ave New Lenox 5, GVH Distribution New lease 55 Brook Forest Ave Shorewood 37,242 Trane US New lease Italics denotes NAI Hiffman transaction NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - THIRD QUARTER

38 Northwest Indiana POPULATION 486, POPULATION CHANGE +1.3% # INDUSTRIAL BUILDINGS 431 g MARKET SIZE (SF) 35,652,57 VACANCY 2,814,3 SF (7.9%) 3Q12 NET ABSORPTION -39,189 YTD NET ABSORPTION -122,585 NEW SUPPLY (SF) UNDER CONSTRUCTION (SF) 1, 9 Gary/Chicago Airport 12 Hammond 8 94 Gary 65 Portage Porter Merrillville Valparaiso Submarket Trends Illinois Indiana Crown Point Vacancy Rate Net Absorption Asking Rents Lowell 1,, 6, 2, -2, -6, -1,, Inventory By City 4% 11% 1,5, 1,2, 9, 6, 19% % Vacancy Rate (%) 25% 22% Net Absorption (SF) Hammond East Chicago Gary Portage Merrillville Other Northwest Indiana Suburbs Under Construction & Recent Deliveries 15% 13% 11% 9% 7% 5% Northwest Indiana Overview The Northwest Indiana submarket is a bifurcated market, with areas north of I-8 including the towns of Hammond, East Chicago, and Gary containing some of the heaviest manufacturing facilities in the world, home to companies like BP Amoco, US Steel, and Arcelor Mittal. There are many functionally obsolete crane & manufacturing buildings housing firms in this area that service the steel and chemical industries. South of I-8, towns such as Munster, Hobart, Merrillville and Portage cater to more modern business parks. Indiana has historically held significant economic advantages over Illinois, such as lower property taxes, utility costs, labor rates, and soft costs (workman s compensation and unemployment insurance). Most companies new to Northwest Indiana migrate from South Cook/Will Counties, but existing Northwest Indiana firms rarely move across the state line to Illinois. In the third quarter, Northwest Indiana s vacancy rate was unchanged at 7.9% from last quarter s rate as limited leasing activity and few new vacancies resulted in negative net absorption of 39,189 SF. The vacancy rate dropped through much of 21 and the first half of 211 as transaction activity picked up, but conditions have been relatively flat ever since. 3, Vacancy reached historically low levels in 211, but demand has fl attened over the course of the past year. Pictured Above: The sprawling one million SF facility located at 21 Mississippi St in Gary, where Metal Resources, Inc leased 32,45 SF during the third quarter

39 Construction A 1, SF build-to-suit project for construction equipment replacement part distributor ITR America LLC broke ground during the third quarter. The new building will be constructed at 631 Northwind Pky in the Northwind Crossing business park. ITR currently occupies 3, SF in the park and will more than triple its current size when the new facility is complete. Available Space Profile.9 MM 1.1 MM.2 MM.6 MM 1.1 MM 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Northwest Indiana Overview Positron Corp, a nuclear medicine company, has plans to build a new $65 million cyclotron particle accelerator and manufacturing facility in Gary that will be located just west of I-65 along 15th Avenue # of Buildings Transaction Activity The only significant transaction during the third quarter in Northwest Indiana involved flat-rolled steel product distributor Metal Resources, Inc s leasing 32,45 SF in the one million SF facility at 21 Mississippi St in Gary. The space will be used as a warehouse/distribution center for Metal Resources , 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Looking Forward The Northwest Indiana vacancy rate has been on the decline since the beginning of 21, and has reached historically low levels over the past few quarters. Looking for cost saving solutions, companies from the South Cook and Will County areas in Illinois continue to be attracted by the economic advantages and leasing incentives being offered by Northwest Indiana landlords. Northwest Indiana Sale Transactions 3rd Qtr 212 Property Address City Size (SF) Sale Price Price PSF Buyer Seller None to report Northwest Indiana Lease Transactions 3rd Qtr 212 Property Address City Leased (SF) Tenant Comments 21 Mississippi St Gary 32,45 Metal Resources, Inc New lease NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - THIRD QUARTER

40 Industrial Submarket Map Beloit Westosha Airport Wisconsin Illinois 1 Chicago North Pleasant Prairie 2 Chicago South 3 North Cook Zion Fox Lake 76 4 West Cook Waukegan Regional Airport 9 5 Southwest Cook 83 6 South Cook 14 Waukegan McHenry 23 Grayslake I-57/Will Corridor Rockford 8 Lake County Northwest Cook 23 Belvidere Cherry Valley 2 19 Mundelein O Hare 6 Crystal Lake Lake Forest Vernon Hills 6 11 Central DuPage 45 Lake Zurich I-55 Corridor Buffalo Grove 9 12 Highland Park 13 McHenry County Hampshire Northbrook Dundee South Elgin 15 Fox Valley 3 Morton Grove Des Plaines Schaumburg I-9 Northwest Arlington Heights 72 Elgin 64 Chicago Executive Airport 53 Glencoe Niles Streamwood Elk Grove Village 16 I-88 Corridor Evanston vvans nnston Skokie Park Ridge Ohare 1 Wood Dale 29 Bensenville Bloomingdale DeKalb elle Geneva West Chicago 38 Carol Stream 11 Elmhurst Sugar Grove Naperville 16 Aurora 3 Hinsdale Downers Grove Woodridge Burr Ridge Montgomery 3 Westchester 31 Bolingbrook Bedford Park Willow Springs 51 Plainfield Palos Heights 9 94 Blue Island East Chicago Gary/Chicago Airp Hammond Hazel Crest Tinley Park Chicago Midway Airport Oak Lawn 83 Romeoville 39 Chicago Cicero La Grange Northwest Indiana North Aurora 2 Southeast Wisconsin 4 Melrose Park Batavia 19 1 Franklin Park Dupage St CharlesAirport DeKalb County 19 I-39 Corridor I-8/Joliet Corridor 3 52 Joliet 3 Munster 1 8 Mokena Matteson 21 New Lenox 52 3 Park Forest Minooka La Salle 6 Ottawa NAI Hiffman Monee Elwood Seneca Indiana 52 Illinois

41 Methodology & Defi nitions Methodology The information included in this report is the result of a compilation and analysis of data from various sources on class A, class B and class C industrial properties located in the metropolitan Chicago area defined by the submarket map on the previous page. NAI Hiffman obtained the information from property representatives, CoStar Group, RealCapital Analytics, industry periodicals and magazines, our in-house property database, and other sources. NAI Hiffman greatly appreciates the participation of each of these individuals, companies and resources, without whose help this report would not have been possible. All of the information detailed throughout this report is saved and organized in our own in-house database and is regularly updated. Utilizing this database, we can analyze, calculate and report demographic information, inventory, vacancy, availability, net absorption, and transactional information. Definitions The NAI Hiffman Market Reports track several measures of market conditions. This information is collected for individual properties then consolidated, organized and analyzed for submarket and market totals. These terms, used throughout the reports, are defined below according to NAIOP Terms & Definitions. Net Absorption The net change in occupied space in a given market between the current measurement period and the last measurement period. Net absorption can be either positive or negative and must include decreases as well as increases in inventory levels. For the purpose of this report, sublease space is included in the calculation of net absorption. New Supply The total inventory delivered to the market since the last measurement period. Delivered is defined as total square footage and/or number of buildings that has completed construction and received a certificate of occupancy during a stated period. Under Construction Buildings where either: a) actual ground breaking has occurred (site excavation or foundation work) and construction is ongoing (not abandoned or discontinued) but for which a certificate of occupancy has not yet been issued; or b) properties undergoing conversion to office from another use or c) properties undergoing a major renovation where 75 percent or more of the building is not available for lease and building generally requires a certificate of occupancy to be made available for lease. NAI Global / Methodology & Definitions Total Inventory (Market Size) The total square footage of gross rentable area in a specific market. It includes the gross rentable area in buildings that have received a certificate of occupancy. Total inventory increases when a new building is delivered and decreases when an existing building is destroyed, demolished or its use changes. Available Space The total amount of space that is currently being marketed as available for lease in a given time period. It includes space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date. Available space excludes shadow space. Vacancy Rate A measurement expressed as a percentage of the total amount of vacant space divided by the total amount of inventory. Vacant space is inventory that is not currently occupied. Shadow Space That portion of leased space which is vacant but not available space. Shadow space is difficult to measure. (Synonym: phantom space) NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - THIRD QUARTER

42 NAI Global From Chicago to Shanghai, from leasing to logistics, leverage our global network to your advantage. NAI Global is the largest network of independent commercial real estate firms worldwide, comprised of over 5, professionals in 55 countries with more than 35 offices. NAI advisors work in tandem with our global management team to ensure our clients strategically optimize their real estate assets. NAI offices complete over $45 billion in combined transactions annually and manage 3+ million square feet of commercial space. NAI Global has received top industry rankings: Ranked #2 brokerage network by Commercial Property News Ranked #3 brokerage organization by Real Estate Forum Ranked #4 Lipsey s Top 25 Real Estate Brands NAI Global is based in Princeton, New Jersey. A dedicated 7-person staff, strategically positioned around the world, provides management, technology, marketing and corporate services support to its network of real estate offices. Global Offi ce Locations by Country ASIA PACIFIC Australia China India Indonesia Japan South Korea Malaysia New Zealand Philippines Singapore Taiwan LATIN AMERICA & THE CARRIBEAN Argentina Bahamas Brazil Chile Costa Rica Jamaica Panama Peru Venezuela NORTH AMERICA Canada Mexico United States EUROPE, MIDDLE EAST & AFRICA Austria Belgium Bulgaria Czech Republic Denmark Finland France Germany Greece Iceland Israel Kazakhstan Kuwait Latvia Norway Qatar Republic of Serbia Romania Russian Federation South Africa Spain Sweden Switzerland Turkey Ukraine United Kingdom

43 NAI Hiffman Dennis Hiffman Chairman David Petersen, RPA CEO John Picchiotti COO - Brokerage jpicchiotti@hiffman.com Office Services Michael Flynn, CCIM, SIOR EVP/Managing Director mflynn@hiffman.com James Adler Executive Vice President jadler@hiffman.com Brian Edgerton Vice President bedgerton@hiffman.com Linda Garske Senior Vice President lgarske@hiffman.com Jud Henry Senior Associate jhenry@hiffman.com Adam Johnson Senior Associate ajohnson@hiffman.com Patrick Kiefer Executive Director pkiefer@hiffman.com Matt Novak Associate mnovak@hiffman.com Daniel O Neill Executive Vice President doneill@hiffman.com Jack Reardon Senior Vice President jreardon@hiffman.com Garrett Schultz Senior Associate gschultz@hiffman.com Jason Streepy Senior Vice President jstreepy@hiffman.com Aubrey Van Reken Senior Associate avanreken@hiffman.com Michael Van Zandt Executive Vice President mvanzandt@hiffman.com Jason Wurtz Vice President jwurtz@hiffman.com Industrial Services John Cash, SIOR EVP/Managing Director jcash@hiffman.com Casey Baird Associate cbaird@hiffman.com Kyle Barrett Associate kbarrett@hiffman.com Duke Botthof Executive Vice President botthof@hiffman.com Joe Bronson, SIOR Vice President jbronson@hiffman.com Brian Colson Executive Vice President bcolson@hiffman.com Steve Connolly, SIOR Executive Vice President sconnolly@hiffman.com Benjamin Cremer Vice President bcremer@hiffman.com Kelly Disser Senior Associate kdisser@hiffman.com Eric Fischer Vice President efischer@hiffman.com Jeff Fischer Senior Vice President jfischer@hiffman.com Chris Gary Vice President cgary@hiffman.com Bruce Granger Senior Vice President bgranger@hiffman.com David Haigh Senior Associate dhaigh@hiffman.com Daniel Leahy, SIOR Executive Vice President dleahy@hiffman.com Adam Marshall, CCIM Vice President amarshall@hiffman.com Mark Moran Executive Vice President mmoran@hiffman.com Lawrence Much, SIOR Executive Vice President lmuch@hiffman.com Michael Robbins Senior Associate mrobbins@hiffman.com Adam Roth, CCIM, SIOR Executive Vice President aroth@hiffman.com Stephen Sullivan Vice President ssullivan@hiffman.com Eric Tresslar Executive Vice President etresslar@hiffman.com John Whitehead Senior Associate jwhitehead@hiffman.com Retail Services Mike Meksto Senior Vice President mmeksto@hiffman.com Claire Bitautas Vice President cbitautas@hiffman.com Anne Callard Senior Associate acallard@hiffman.com Dan Hiffman Senior Sales Associate dan@hiffman.com Jennifer Hopkins Senior Retail Associate jhopkins@hiffman.com Jim Tsevis Vice President jtsevis@hiffman.com Investment Services Arthur Burrows Senior Vice President aburrows@hiffman.com Marketing Whitney Kannaka Marketing Director wkannaka@hiffman.com Matt Hronick Senior Designer mhronick@hiffman.com Lauren Fishbune Marketing Specialist lfishbune@hiffman.com Catherine DeBoer Elsa Gaztambide Karen Kirian Alison O Connell Melody Lawrence Cindy Nickell Denise Racana Tammi Sowinski Lynn Zbierski Research For further information regarding the content of this market review, or for specialty reports, please contact your local broker or: Craig Hurvitz Director of Statistics and Market Information churvitz@hiffman.com Brian Chandler Research Associate bchandler@hiffman.com NAI Global / Methodology & Definitions NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - THIRD QUARTER

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