The CoStar Industrial Report

Transcription

1 The CoStar Industrial Report F I R S T Q U A R T E R National Industrial Market

2 National Industrial Market FIRST QUARTER 2014 NATIONAL Table of Contents Table of Contents A Methodology B Terms & Definitions C Market Highlights & Overview Inventory & Development Analysis Inventory & Development Analysis Select Top Deliveries Select Top Under Construction Properties Figures at a Glance by Building Type & Submarket Historical Figures at a Glance Leasing Activity Analysis Leasing Activity Analysis Select Top Lease Transactions Sales Activity Analysis Sales Activity Analysis Select Top Sales Transactions 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT A

3 NATIONAL FIRST QUARTER 2014 National Industrial Market Methodology The CoStar Industrial Report calculates Industrial statistics using CoStar Group's base of existing, under construction and under renovation Industrial buildings in each given metropolitan area. All Industrial building types are included, including warehouse, flex / research & development, distribution, manufacturing, industrial showroom, and service buildings, in both single-tenant and multi-tenant buildings, including owner-occupied buildings. CoStar Group's national database includes approximately 80.7 billion square feet of coverage in 3.5 million properties. All rental rates reported in the CoStar Industrial Report are calculated using the quoted rental rate for each property. CoStar regularly opens new markets to expand its geographic coverage which results in varying start dates for historical data. Due to differences in market start dates and a desire to show as long a historical timeframe as possible, only the following markets are included in the historical charts within this report: Atlanta, Austin, Baltimore, Boston, Broward County, Charlotte, Chicago, Cincinnati, Cleveland, Columbus, Dallas/Ft Worth, Dayton, Denver, Detroit, East Bay/Oakland, Houston, Indianapolis, Inland Empire (California), Jacksonville (Florida), Kansas City, Long Island (New York), Los Angeles, Memphis, Miami-Dade County, Nashville, Northern New Jersey, Orange (California), Orlando, Palm Beach County, Philadelphia, Phoenix, Pittsburgh, Raleigh/Durham, Sacramento, San Diego, San Francisco, Seattle/Puget Sound, South Bay/San Jose, St. Louis, Tampa/St Petersburg, Washington, and Westchester/ So Connecticut. When ever possible all markets are included to provide as broad as possible national coverage. The Market Highlights and Overview narrative includes all markets. For information on subscribing to CoStar s other products and services, please contact us at COSTAR, or visit our web site at Copyright 2012 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of the information contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness or completeness of the information. The publication is provided as is and CoStar expressly disclaims any guarantees, representations or warranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. CoStar Group, Inc L ST NW Washington, DC (800) NASDAQ: CSGP B THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

4 National Industrial Market FIRST QUARTER 2014 NATIONAL Terms & Definitions Availability Rate: The ratio of available space to total rentable space, calculated by dividing the total available square feet by the total rentable square feet. Available Space: The total amount of space that is currently being marketed as available for lease in a given time period. It includes any space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date. Build-to-Suit: A term describing a particular property, developed specifically for a certain tenant to occupy, with structural features, systems, or improvement work designed specifically for the needs of that tenant. A build-to-suit can be leased or owned by the tenant. In a leased build-to-suit, a tenant will usually have a long term lease on the space. Buyer: The individual, group, company, or entity that has purchased a commercial real estate asset. Cap Rate: Short for capitalization rate. The Cap Rate is a calculation that reflects the relationship between one year s net operating income and the current market value of a particular property. The Cap Rate is calculated by dividing the annual net operating income by the sales price (or asking sales price). CBD: Abbreviation for Central Business District. (See also: Central Business District) Central Business District: The designations of Central Business District (CBD) and Suburban refer to a particular geographic area within a metropolitan statistical area (MSA) describing the level of real estate development found there. The CBD is characterized by a high density, well organized core within the largest city of a given MSA. Class A: A classification used to describe buildings that generally qualify as extremely desirable investment-grade properties and command the highest rents or sale prices compared to other buildings in the same market. Such buildings are well located and provide efficient tenant layouts as well as high quality, and in some buildings, one-of-a-kind floor plans. They can be an architectural or historical landmark designed by prominent architects. These buildings contain a modern mechanical system, and have above-average maintenance and management as well as the best quality materials and workmanship in their trim and interior fittings. They are generally the most attractive and eagerly sought by investors willing to pay a premium for quality. Class B: A classification used to describe buildings that generally qualify as a more speculative investment, and as such, command lower rents or sale prices compared to Class A properties. Such buildings offer utilitarian space without special attractions, and have ordinary design, if new or fairly new; good to excellent design if an older non-landmark building. These buildings typically have average to good maintenance, management and tenants. They are less appealing to tenants than Class A properties, and may be deficient in a number of respects including floor plans, condition and facilities. They lack prestige and must depend chiefly on a lower price to attract tenants and investors. Class C: A classification used to describe buildings that generally qualify as no-frills, older buildings that offer basic space and command lower rents or sale prices compared to other buildings in the same market. Such buildings typically have below-average maintenance and management, and could have mixed or low tenant prestige, inferior elevators, and/or mechanical/electrical systems. These buildings lack prestige and must depend chiefly on a lower price to attract tenants and investors. Construction Starts: Buildings that began construction during a specific period of time. (See also: Deliveries) Contiguous Blocks of Space: Space within a building that is, or is able to be joined together into a single contiguous space. Deliveries: Buildings that complete construction during a specified period of time. In order for space to be considered delivered, a certificate of occupancy must have been issued for the property. Delivery Date: The date a building completes construction and receives a certificate of occupancy. Developer: The company, entity or individual that transforms raw land to improved property by use of labor, capital and entrepreneurial efforts. Direct Space: Space that is being offered for lease directly from the landlord or owner of a building, as opposed to space being offered in a building by another tenant (or broker of a tenant) trying to sublet a space that has already been leased. Existing Inventory: The square footage of buildings that have received a certificate of occupancy and are able to be occupied by tenants. It does not include space in buildings that are either planned, under construction or under renovation. Flex Building: A type of building designed to be versatile, which may be used in combination with office (corporate headquarters), research and development, quasi-retail sales, and including but not limited to industrial, warehouse, and distribution uses. A typical flex building will be one or two stories with at least half of the rentable area being used as office space, have ceiling heights of 16 feet or less, and have some type of drive-in door, even though the door may be glassed in or sealed off. Full Service Rental Rate: Rental rates that include all operating expenses such as utilities, electricity, janitorial services, taxes and insurance. Gross Absorption: The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing Activity, which is the sum of all space leased over a certain period of time. Unless otherwise noted Gross Absorption includes direct and sublease space. Growth in Inventory: The change in size of the existing square footage in a given area over a given period of time, generally due to the construction of new buildings. Industrial Building: A type of building adapted for such uses as the assemblage, processing, and/or manufacturing of products from raw materials or fabricated parts. Additional uses include warehousing, distribution, and maintenance facilities. The primary purpose of the space is for storing, producing, assembling, or distributing product. Landlord Rep: (Landlord Representative) In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the owner/landlord is referred to as the Landlord Rep. Leased Space: All the space that has a financial lease obligation. It includes all leased space, regardless of whether the space is currently occupied by a tenant. Leased space also includes space being offered for sublease. Leasing Activity: The volume of square footage that is committed to and signed under a lease obligation for a specific building or market in a given period of time. It includes direct leases, subleases and renewals of existing leases. It also includes any pre-leasing activity in planned, under construction, or under renovation buildings. Market: Geographic boundaries that serve to delineate core areas that are competitive with each other and constitute a generally accepted primary competitive set of areas. Markets are buildingtype specific, and are non-overlapping contiguous geographic designations having a cumulative sum that matches the boundaries of the entire Region (See also: Region). Markets can be further subdivided into Submarkets. (See also: Submarkets) 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT C

5 NATIONAL FIRST QUARTER 2014 National Industrial Market Multi-Tenant: Buildings that house more than one tenant at a given time. Usually, multi-tenant buildings were designed and built to accommodate many different floor plans and designs for different tenant needs. (See also: Tenancy). Net Absorption: The net change in occupied space over a given period of time. Unless otherwise noted Net Absorption includes direct and sublease space. Net Rental Rate: A rental rate that excludes certain expenses that a tenant could incur in occupying office space. Such expenses are expected to be paid directly by the tenant and may include janitorial costs, electricity, utilities, taxes, insurance and other related costs. New Space: Sometimes called first generation space, refers to space that has never been occupied and/or leased by a tenant. Occupied Space: Space that is physically occupied by a tenant. It does not include leased space that is not currently occupied by a tenant. Office Building: A type of commercial building used exclusively or primarily for office use (business), as opposed to manufacturing, warehousing, or other uses. Office buildings may sometimes have other associated uses within part of the building, i.e., retail sales, financial, or restaurant, usually on the ground floor. Owner: The company, entity, or individual that holds title on a given building or property. Planned/Proposed: The status of a building that has been announced for future development but not yet started construction. Preleased Space: The amount of space in a building that has been leased prior to its construction completion date, or certificate of occupancy date. Price/SF: Calculated by dividing the price of a building (either sales price or asking sales price) by the Rentable Building Area (RBA). Property Manager: The company and/or person responsible for the day-to-day operations of a building, such as cleaning, trash removal, etc. The property manager also makes sure that the various systems within the building, such as the elevators, HVAC, and electrical systems, are functioning properly. Quoted Rental Rate: The asking rate per square foot for a particular building or unit of space by a broker or property owner. Quoted rental rates may differ from the actual rates paid by tenants following the negotiation of all terms and conditions in a specific lease. RBA: Abbreviation for Rentable Building Area. (See also: Rentable Building Area) Region: Core areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Regions are further divided into market areas, called Markets. (See also: Markets) Relet Space: Sometimes called second generation or direct space, refers to existing space that has previously been occupied by another tenant. Rentable Building Area: (RBA) The total square footage of a building that can be occupied by, or assigned to a tenant for the purpose of determining a tenant s rental obligation. Generally RBA includes a percentage of common areas including all hallways, main lobbies, bathrooms, and telephone closets. Rental Rates: The annual costs of occupancy for a particular space quoted on a per square foot basis. Sales Price: The total dollar amount paid for a particular property at a particular point in time. Sales Volume: The sum of sales prices for a given group of buildings in a given time period. Seller: The individual, group, company, or entity that sells a particular commercial real estate asset. SF: Abbreviation for Square Feet. Single-Tenant: Buildings that are occupied, or intended to be occupied by a single tenant. (See also: Build-to-suit and Tenancy) Sublease Space: Space that has been leased by a tenant and is being offered for lease back to the market by the tenant with the lease obligation. Sublease space is sometimes referred to as sublet space. Submarkets: Specific geographic boundaries that serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted primary competitive set, or peer group. Submarkets are building type specific (office, industrial, retail, etc.), with distinct boundaries dependent on different factors relevant to each building type. Submarkets are non-overlapping, contiguous geographic designations having a cumulative sum that matches the boundaries of the Market they are located within (See also: Market). Suburban: The Suburban and Central Business District (CBD) designations refer to a particular geographic area within a metropolitan statistical area (MSA). Suburban is defined as including all office inventory not located in the CBD. (See also: CBD) Tenancy: A term used to indicate whether or not a building is occupied by multiple tenants (See also: Multi-tenant) or a single tenant. (See also: Single-tenant) Tenant Rep: Tenant Rep stands for Tenant Representative. In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the tenant is referred to as a Tenant Rep. Time On Market: A measure of how long a currently available space has been marketed for lease, regardless of whether it is vacant or occupied. Under Construction: The status of a building that is in the process of being developed, assembled, built or constructed. A building is considered to be under construction after it has begun construction and until it receives a certificate of occupancy. Vacancy Rate: A measurement expressed as a percentage of the total amount of physically vacant space divided by the total amount of existing inventory. Under construction space generally is not included in vacancy calculations. Vacant Space: Space that is not currently occupied by a tenant, regardless of any lease obligation that may be on the space. Vacant space could be space that is either available or not available. For example, sublease space that is currently being paid for by a tenant but not occupied by that tenant, would be considered vacant space. Likewise, space that has been leased but not yet occupied because of finish work being done, would also be considered vacant space. Weighted Average Rental Rate: Rental rates that are calculated by factoring in, or weighting, the square footage associated with each particular rental rate. This has the effect of causing rental rates on larger spaces to affect the average more than that of smaller spaces. The weighted average rental rate is calculated by taking the ratio of the square footage associated with the rental rate on each individual available space to the square footage associated with rental rates on all available spaces, multiplying the rental rate by that ratio, and then adding together all the resulting numbers. Unless specifically specified otherwise, rental rate averages include both Direct and Sublet available spaces. Year Built: The year in which a building completed construction and was issued a certificate of occupancy. YTD: Abbreviation for Year-to-Date. Describes statistics that are cumulative from the beginning of a calendar year through whatever time period is being studied. D THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

6 National Industrial Market OVERVIEW FIRST QUARTER 2014 NATIONAL U.S. s Vacancy Decreases to 7.8% Net Absorption Positive 46,960,231 SF in the Quarter The U.S. Industrial market ended the first quarter 2014 with a vacancy rate of 7.8%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 46,960,231 square feet in the first quarter. Vacant sublease space decreased in the quarter, ending the quarter at 38,546,689 square feet. Rental rates ended the first quarter at $5.39, an increase over the previous quarter. A total of 279 buildings delivered to the market in the quarter totaling 27,775,922 square feet, with 114,737,565 square feet still under construction at the Absorption Net absorption for the overall U.S. Industrial market was positive 46,960,231 square feet in the first quarter That compares to positive 79,293,116 square feet in the fourth quarter 2013, positive 60,410,567 square feet in the third quarter 2013, and positive 50,194,296 square feet in the second quarter Tenants moving out of large blocks of space in 2014 include: ETS Incorporated moving out of 11,500-square feet at 4 Vatrano Rd in the Albany/Schenectady/Troy market, Baker Equipment moving out of 50,000- square feet at 1310 Roseneath Rd in the Richmond market, and Silgan Plastics, LLC moving out of 187,850-square-feet at 1191 Lake Ave in the Chicago market. Tenants moving into large blocks of space in 2014 include: Dynamic Marketing, Inc moving into 396,510-square-feet in the Northern New Jersey market, Shumacher moving into 100,000- square-feet at 1966 W Hwy 160 in the Charlotte market and United Pipe & Steel Corp moving into 80,000-square-feet at 1350 S Sheeler Rd in the Orlando market. The Flex building market recorded net absorption of positive 4,516,117 square feet in the first quarter 2014, compared to positive 6,786,771 square feet in the fourth quarter 2013, positive 3,719,862 in the third quarter 2013, and positive 4,774,966 in the second quarter The Warehouse building market recorded net absorption of positive 42,444,114 square feet in the first quarter 2014 compared to positive 72,506,345 square feet in the fourth quarter 2013, positive 56,690,705 in the third quarter 2013, and positive 45,419,330 in the second quarter Vacancy The Industrial vacancy rate in the U.S. market area decreased to 7.8% at the end of the first quarter The vacancy rate was 8.0% at the end of the fourth quarter 2013, 8.3% at the end of the third quarter 2013, and 8.5% at the end of the second quarter Flex projects reported a vacancy rate of 10.8% at the end of the first quarter 2014, 11.0% at the end of the fourth quarter 2013, 11.3% at the end of the third quarter 2013, and 11.5% at the end of the second quarter Warehouse projects reported a vacancy rate of 7.5% at the end of the first quarter 2014, 7.6% at the end of fourth quarter 2013, 7.9% at the end of the third quarter 2013, and 8.1% at the end of the second quarter Largest Lease Signings The largest lease signings occurring in 2014 included: the 898,560-square-foot lease signed by PactivCorporation at PinnacleXV in the Chicago market; the 497,867-square-foot deal signed by HD Supply Holdings, Inc at Greens Crossing I in Vacancy Rates by Building Type* % Flex Warehouse Total Market 14% 12% Vacancy Rate 10% 8% 6% 4% 2% 0% q q q q q q q q q q q q q q Source: CoStar Property * Select markets included in this historical chart - see Methodology page COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 1

7 NATIONAL FIRST QUARTER 2014 National Industrial Market OVERVIEW the Houston, and the 405,679-square-foot lease signed by NFI Industries at Port Reading Business Park Bldg 3 in the Northern New Jersey market. Sublease Vacancy The amount of vacant sublease space in the U.S. market decreased to 38,546,689 square feet by the end of the first quarter 2014, from 39,270,380 square feet at the end of the fourth quarter There was 43,598,709 square feet vacant at the end of the third quarter 2013 and 46,554,474 square feet at the end of the second quarter U.S. s Flex projects reported vacant sublease space of 6,792,324 square feet at the end of first quarter 2014, down from the 6,982,997 square feet reported at the end of the fourth quarter There were 7,162,187 square feet of sublease space vacant at the end of the third quarter 2013, and 7,528,783 square feet at the end of the second quarter Warehouse projects reported decreased vacant sublease space from the fourth quarter 2013 to the first quarter Sublease vacancy went from 32,287,383 square feet to 31,754,365 square feet during that time. There was 36,436,522 square feet at the end of the third quarter 2013, and 39,025,691 square feet at the end of the second quarter Rental Rates The average quoted asking rental rate for available Industrial space was $5.39 per square foot per year at the end of the first quarter 2014 in the U.S. market area. This represented a 0.6% increase in quoted rental rates from the end of the fourth quarter 2013, when rents were reported at $5.36 per square foot. The average quoted rate within the Flex sector was $10.71 per square foot at the end of the first quarter 2014, while Warehouse rates stood at $4.73. At the end of the fourth quarter 2013, Flex rates were $10.58 per square foot, and Warehouse rates were $4.71. Deliveries and Construction During the first quarter 2014, 279 buildings totaling 27,775,922 square feet were completed in the U.S. market area. This compares to 210 buildings totaling 25,162,233 square feet that were completed in the fourth quarter 2013, 234 buildings totaling 32,307,525 square feet completed in the third quarter 2013, and 22,912,108 square feet in 230 buildings completed in the second quarter There were 114,737,565 square feet of Industrial space under construction at the end of the first quarter Some of the notable 2014 deliveries include: 4500 S Dobson Rd, a 2,145,757-square-foot facility in the Phoenix market that delivered in first quarter 2014 and is now 0% occupied, and 2101 Danieldale Rd, a 1,224,688-square-foot building in the Dallas/Ft Worth market that delivered in first quarter 2014 and is now 100% occupied. The largest projects underway at the end of first quarter 2014 were Intel Ronler Acres - D1X, a 1,800,000-square-foot building in the Portland market with 100% of its space preleased, and Indian Ave, a 1,560,046-square-foot facility in the Inland Empire (California) market that is 100% pre-leased. Inventory Total Industrial inventory in the U.S. market area amounted to 20,953,131,027 square feet in 618,361 buildings as of the end of the first quarter The Flex sector consisted of 2,258,246,572 square feet in 89,854 projects. The Warehouse sector consisted of 18,694,884,455 square feet in 528,507 buildings. Within the Industrial market there were 68,119 owner-occupied buildings accounting for 4,228,153,143 square feet of Industrial space. Sales Activity Tallying Industrial building sales of 15,000 square feet or larger, U.S. Industrial sales figures rose during the fourth quarter 2013 in terms of dollar volume compared to the third quarter of In the fourth quarter, 1,576 Industrial transactions closed with a total volume of $7,262,766,874. The 1,576 buildings totaled 126,040,093 square feet and the average price per square foot equated to $57.62 per square foot. That compares to 1,460 transactions totaling $5,710,523,894 in the third quarter. The total square footage was 108,534,612 for an average price per square foot of $ Total year-to-date Industrial building sales activity in 2013 is up compared to the previous year. In the twelve months of 2013, the market saw 5,321 Industrial sales transactions with a total volume of $23,482,822,201. The price per square foot has averaged $56.40 this year. In the twelve months of 2012, the market posted 5,357 transactions with a total volume of $21,501,347,482. The price per square foot averaged $ Cap rates have been lower in 2013, averaging 7.99%, compared to the twelve months of last year when they averaged 8.17%. One of the largest transactions that has occurred within the last 4 quarters in the U.S. market is the sale of 5959 Randolph St in the Los Angeles market. This 400,169 square foot Industrial building sold for $53,800,000, or $ per square foot. The property sold on 1/14/2014, at a 4.3% cap rate. Albany/Schenectady/Troy The Albany/Schenectady/Troy Industrial market saw vacancies rise and rental rates change from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 7.3%, from 7.2% in the previous quarter. Rental rates ended the quarter at $4.59 per square foot, from $4.59 in the previous quarter. There was a total of 80,000 square feet that delivered in the quarter, with 159,493 square feet still under construction at the 2 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

8 National Industrial Market OVERVIEW FIRST QUARTER 2014 NATIONAL Albuquerque The Albuquerque Industrial market saw vacancies rise and rental rates decrease from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 7.8%, from 7.6% in the previous quarter. Rental rates ended the quarter at $6.60 per square foot, from $6.62 in the previous quarter. There was a total of 101,500 square feet that delivered in the quarter, with 15,000 square feet still under construction at the Anchorage With no space currently under construction, Anchorage absorbed 8,123 square feet of space and delivered 2,840 square feet of space, resulting in a vacancy rate that remained at 2.5%. Rental rates went from $11.59 to $12.67 per square foot. Asheville With no space currently under construction, Asheville absorbed (4,188) square feet of space and delivered 14,300 square feet of space, resulting in a vacancy rate that remained at 7.6% over the course of the quarter. Rental rates went from $3.84 to $3.86 per square foot. Atlanta The Atlanta Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 10.5%, from 11.2% in the previous quarter. Rental rates ended the quarter at $3.94 per square foot, from $3.92 in the previous quarter. There was a total of 177,000 square feet that delivered in the quarter, with 4,276,846 square feet still under construction at the end of the quarter. Augusta/Richmond County and positive 206,572 square feet of net absorption, Augusta/ Richmond County s vacancy rate remained at 9.0%. Rental rates went from $2.94 to $2.86 during that time. At the end of the quarter, there was 195,800 square feet underway for future delivery. Austin The Austin Industrial market saw vacancies rise and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 9.1%, from 7.6% in the previous quarter. Rental rates ended the quarter at $7.67 per square foot, from $7.26 in the previous quarter. There was a total of 301,404 square feet that delivered in the quarter, with 246,947 square feet still under construction at the end of the quarter. Bakersfield and negative (31,934) square feet of net absorption, Bakersfield s Absorption & Deliveries* Past 7 Quarters Millions SF Net Absorption Source: CoStar Property * Select markets included in this chart - see Methodology page. vacancy rate went from 4.4% to 4.5% in the quarter. Rental rates went from $6.19 to $6.32 during that time. At the end of the quarter, there was 6,967 square feet underway for future delivery. Baltimore and positive 956,396 square feet of net absorption, Baltimore s vacancy rate went from 9.2% to 8.8% in the quarter. Rental rates went from $5.75 to $5.90 during that time. At the end of the quarter, there was 3,715,118 square feet underway for future delivery. Baton Rouge The Baton Rouge Industrial market saw vacancies rise and rental rates decrease from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 11.3%, from 10.9% in the previous quarter. Rental rates ended the quarter at $5.11 per square foot, from $5.16 in the previous quarter. There was a total of 30,275 square feet that delivered in the quarter, with 50,000 square feet still under construction at the Beaumont/Port Arthur The Beaumont/Port Arthur Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of negative (33,677) square feet caused the vacancy rate to increase from 7.1% to 7.4% in the quarter. Rental rates stood at $4.80. Birmingham and negative (63,383) square feet of net absorption, Birmingham s Deliveries q q q q q q q 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 3

9 NATIONAL FIRST QUARTER 2014 National Industrial Market OVERVIEW vacancy rate remained at 10.0%. Rental rates went from $3.42 to $3.41 during that time. At the end of the quarter, there was 682,748 square feet underway for future delivery. Boise City/Nampa and negative (104,991) square feet of net absorption, Boise City/ Nampa s vacancy rate went from 7.6% to 7.9% in the quarter. Rental rates went from $5.07 to $5.19 during that time. At the end of the quarter, there was 25,000 square feet underway for future delivery. Boston The Boston Industrial market saw vacancies fall and rental rates change from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 8.8%, from 8.9% in the previous quarter. Rental rates remained at $6.20 per square foot. There was a total of 110,400 square feet that delivered in the quarter, with 659,045 square feet still under construction at the Bremerton/Silverdale The Bremerton/Silverdale Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of positive 30,299 square feet caused the vacancy rate to decrease from 6.5% to 5.4% in the quarter. Rental rates stood at $6.33. Broward County The vacancy rate remained unchanged in Broward County in the first quarter. With 428,810 square feet in deliveries, and positive 338,448 square feet in net absorption, the vacancy rate held at 7.9%, the same rate reported in the previous quarter. The market had 356,600 square feet under construction at the end of the quarter, and rental rates stood at $7.96 per square foot. Brownsville/Harlingen The Brownsville/Harlingen Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of positive 3,350 square feet caused the vacancy rate to decrease from 15.8% to 15.7% in the quarter. Rental rates stood at $3.52. Buffalo/Niagara Falls The Buffalo/Niagara Falls Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of positive 96,261 square feet caused the vacancy rate to decrease from 10.3% to 10.1% in the quarter. Rental rates stood at $3.93. Charleston WV The Charleston WV Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of positive 15,310 square feet caused the vacancy rate to decrease from 2.7% to 2.6% in the quarter. Rental rates stood at $6.00. Charleston/N Charleston The Charleston/N Charleston Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 7.8%, from 8.4% in the previous quarter. Rental rates ended the quarter at $4.78 per square foot, from $4.71 in the previous quarter. There was a total of 6,000 square feet that delivered in the quarter, with 140,000 square feet still under construction at the Charlotte The Charlotte Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 10.1%, from 10.4% in the previous quarter. Rental rates ended the quarter at $3.82 per square foot, from $3.80 in the previous quarter. There was a total of 169,423 square feet that delivered in the quarter, with 1,970,123 square feet still under construction at the end of the quarter. Chattanooga and negative (13,522) square feet of net absorption, Chattanooga s vacancy rate remained at 14.4%. Rental rates went from $2.91 to $3.09 during that time. At the end of the quarter, there was 201,050 square feet underway for future delivery. Chicago The Chicago Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 8.6%, from 8.7% in the previous quarter. Rental rates ended the quarter at $5.17 per square foot, from $5.14 in the previous quarter. There was a total of 1,308,166 square feet that delivered in the quarter, with 4,324,488 square feet still under construction at the end of the quarter. Cincinnati and positive 1,475,733 square feet of net absorption, Cincinnati s vacancy rate went from 7.3% to 6.8% in the quarter. Rental rates went from $3.41 to $3.47 during that time. At the end of the quarter, there was 1,280,564 square feet underway for future delivery. Cleveland The vacancy rate remained unchanged in Cleveland in the first quarter. With 122,738 square feet in deliveries, and positive 4 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

10 National Industrial Market OVERVIEW FIRST QUARTER 2014 NATIONAL 242,435 square feet in net absorption, the vacancy rate held at 7.9%, the same rate reported in the previous quarter. The market had 194,576 square feet under construction at the end of the quarter, and rental rates stood at $3.67 per square foot. Colorado Springs With no space currently under construction, Colorado Springs absorbed 278,389 square feet of space and delivered 167,220 square feet of space, resulting in a vacancy rate that went from 8.7% to 8.3% over the course of the quarter. Rental rates went from $6.05 to $6.16 per square foot. Columbia and positive 912,766 square feet of net absorption, Columbia s vacancy rate went from 10.4% to 8.7% in the quarter. Rental rates went from $3.97 to $3.98 during that time. At the end of the quarter, there was 511,500 square feet underway for future delivery. Columbus The Columbus Industrial market saw vacancies fall and rental rates change from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 7.0%, from 7.5% in the previous quarter. Rental rates remained at $3.22 per square foot. There was a total of 503,589 square feet that delivered in the quarter, with 1,275,969 square feet still under construction at the Columbus GA The Columbus GA Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of positive 99,593 square feet caused the vacancy rate to decrease from 9.5% to 9.0% in the quarter. Rental rates stood at $2.89. Corpus Christi The Corpus Christi Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 4.2%, from 4.4% in the previous quarter. Rental rates ended the quarter at $6.34 per square foot, from $6.28 in the previous quarter. There was a total of 30,000 square feet that delivered in the quarter, with 18,300 square feet still under construction at the Dallas/Ft Worth The vacancy rate remained unchanged in Dallas/Ft Worth in the first quarter. With 4,997,415 square feet in deliveries, and positive 4,677,626 square feet in net absorption, the vacancy rate held at 7.3%, the same rate reported in the previous quarter. The market had 14,440,861 square feet under construction at the end of the quarter, and rental rates stood at $5.20 per square foot. Davenport/Moline/Rock Island The Davenport/Moline/Rock Island Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of positive 19,412 square feet caused the vacancy rate to decrease from 6.8% to 6.6% in the quarter. Rental rates stood at $3.88. Dayton The Dayton Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of negative (377,349) square feet caused the vacancy rate to increase from 13.9% to 14.2% in the quarter. Rental rates stood at $3.32. Deltona/Daytona Beach The Deltona/Daytona Beach Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 8.0%, from 8.5% in the previous quarter. Rental rates ended the quarter at $5.16 per square foot, from $5.11 in the previous quarter. There was a total of 30,765 square feet that delivered in the quarter, with 6,000 square feet still under construction at the Denver The Denver Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 5.4%, from 5.8% in the previous quarter. Rental rates ended the quarter at $6.79 per square foot, from $6.69 in the previous quarter. There was a total of 183,599 square feet that delivered in the quarter, with 2,826,450 square feet still under construction at the end of the quarter. Des Moines The Des Moines Industrial market saw vacancies fall and rental rates decrease from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 3.9%, from 4.1% in the previous quarter. Rental rates ended the quarter at $4.41 per square foot, from $4.44 in the previous quarter. There was a total of 12,614 square feet that delivered in the quarter, with 264,922 square feet still under construction at the end of the quarter. Detroit The Detroit Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 9.0%, from 9.2% in the previous quarter. Rental rates ended the quarter at $4.63 per square foot, from $4.60 in the previous quarter. There was a total of 303,996 square feet that delivered in the quarter, with 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 5

11 NATIONAL FIRST QUARTER 2014 National Industrial Market OVERVIEW 834,323 square feet still under construction at the end of the quarter. Duluth The Duluth Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of positive 16,775 square feet caused the vacancy rate to decrease from 4.6% to 4.5% in the quarter. Rental rates stood at $5.72. East Bay/Oakland The East Bay/Oakland Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 7.7%, from 8.0% in the previous quarter. Rental rates ended the quarter at $8.25 per square foot, from $8.01 in the previous quarter. There was a total of 374,725 square feet that delivered in the quarter, with 2,355,436 square feet still under construction at the El Paso and negative (845,662) square feet of net absorption, El Paso s vacancy rate went from 10.7% to 12.1% in the quarter. Rental rates went from $4.00 to $4.08 during that time. At the end of the quarter, there was 20,000 square feet underway for future delivery. Erie The Erie Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of positive 11,044 square feet caused the vacancy rate to decrease from 9.7% to 9.6% in the quarter. Rental rates stood at $2.76. Evansville The Evansville Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of negative (97,479) square feet caused the vacancy rate to increase from 14.6% to 14.9% in the quarter. Rental rates stood at $2.80. Fayetteville The Fayetteville Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of negative (171,355) square feet caused the vacancy rate to increase from 10.2% to 11.4% in the quarter. Rental rates stood at $3.79. Fayetteville/Springdale/Rogers With no space currently under construction, Fayetteville/ Springdale/Roge absorbed (96,216) square feet of space and delivered 20,000 square feet of space, resulting in a vacancy rate that went from 8.8% to 9.2% over the course of the quarter. Rental rates went from $3.51 to $3.55 per square foot. Fort Smith The Fort Smith Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of positive 27,774 square feet caused the vacancy rate to decrease from 12.6% to 12.4% in the quarter. Rental rates stood at $2.49. Fort Wayne The Fort Wayne Industrial market saw vacancies rise and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 6.5%, from 5.9% in the previous quarter. Rental rates ended the quarter at $3.56 per square foot, from $3.52 in the previous quarter. There was a total of 102,400 square feet that delivered in the quarter, with 253,000 square feet still under construction at the Fresno The Fresno Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 7.3%, from 8.0% in the previous quarter. Rental rates ended the quarter at $4.15 per square foot, from $4.02 in the previous quarter. There was a total of 21,285 square feet that delivered in the quarter, with 96,000 square feet still under construction at the end of the quarter. Green Bay The vacancy rate remained unchanged in Green Bay in the first quarter. With 21,000 square feet in deliveries, and positive 56,764 square feet in net absorption, the vacancy rate held at 3.7%, the same rate reported in the previous quarter. The market had 19,200 square feet under construction at the end of the quarter, and rental rates stood at $4.05 per square foot. Greensboro/Winston-Salem The vacancy rate remained unchanged in Greensboro/ Winston-Salem in the first quarter. With 2,400 square feet in deliveries, and negative (209,889) square feet in net absorption, the vacancy rate held at 8.6%, the same rate reported in the previous quarter. The market had 2,186,560 square feet under construction at the end of the quarter, and rental rates stood at $2.96 per square foot. Greenville/Spartanburg The Greenville/Spartanburg Industrial market saw vacancies rise and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 8.7%, from 8.5% in the previous quarter. Rental rates ended the quarter at $3.28 per square foot, from $3.24 in the previous 6 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

12 National Industrial Market OVERVIEW FIRST QUARTER 2014 NATIONAL quarter. There was a total of 122,400 square feet that delivered in the quarter, with 800,719 square feet still under construction at the Hampton Roads The Hampton Roads Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 8.4%, from 8.7% in the previous quarter. Rental rates ended the quarter at $5.18 per square foot, from $5.15 in the previous quarter. There was a total of 60,214 square feet that delivered in the quarter, with 75,121 square feet still under construction at the Hartford and negative (62,208) square feet of net absorption, Hartford s vacancy rate remained at 9.5%. Rental rates went from $4.28 to $4.27 during that time. At the end of the quarter, there was 1,500,000 square feet underway for future delivery. Hawaii and negative (25,581) square feet of net absorption, Hawaii s vacancy rate went from 2.7% to 2.8% in the quarter. Rental rates went from $11.94 to $12.12 during that time. At the end of the quarter, there was 215,927 square feet underway for future delivery. Houston The Houston Industrial market saw vacancies rise and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 5.4%, from 5.3% in the previous quarter. Rental rates ended the quarter at $5.85 per square foot, from $5.74 in the previous quarter. There was a total of 2,800,908 square feet that delivered in the quarter, with 4,715,285 square feet still under construction at the end of the quarter. Huntington/Ashland The Huntington/Ashland Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of positive 12,895 square feet caused the vacancy rate to remain at 3.2%. Rental rates stood at $3.86. Huntsville The Huntsville Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of positive 3,968 square feet caused the vacancy rate to decrease from 11.7% to 11.6% in the quarter. Rental rates stood at $5.86. Indianapolis and positive 104,304 square feet of net absorption, Indianapolis s vacancy rate remained at 7.0%. Rental rates went from $3.92 to $3.88 during that time. At the end of the quarter, there was 2,187,530 square feet underway for future delivery. Inland Empire (California) The Inland Empire (California) Industrial market saw vacancies rise and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 5.2%, from 5.1% in the previous quarter. Rental rates ended the quarter at $5.27 per square foot, from $5.23 in the previous quarter. There was a total of 2,211,491 square feet that delivered in the quarter, with 13,710,685 square feet still under construction at the Jackson The Jackson Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of negative (623) square feet caused the vacancy rate to remain at 9.2%. Rental rates stood at $3.89. Jacksonville (Florida) and positive 470,892 square feet of net absorption, Jacksonville (Florida) s vacancy rate went from 9.2% to 8.9% in the quarter. Rental rates remained at $3.97. At the end of the quarter, there was 354,074 square feet underway for future delivery. Kansas City The Kansas City Industrial market saw vacancies fall and rental rates decrease from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 5.3%, from 5.4% in the previous quarter. Rental rates ended the quarter at $4.19 per square foot, from $4.20 in the previous quarter. There was a total of 772,408 square feet that delivered in the quarter, with 1,916,174 square feet still under construction at the Killeen/Temple/Fort Hood The Killeen/Temple/Fort Hood Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of negative (67,054) square feet caused the vacancy rate to increase from 4.0% to 5.4% in the quarter. Rental rates stood at $4.53. Kingsport/Bristol/Bristol The Kingsport/Bristol/Bristol Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 7

13 NATIONAL FIRST QUARTER 2014 National Industrial Market OVERVIEW absorption of negative (133,693) square feet caused the vacancy rate to increase from 11.6% to 12.2% in the quarter. Rental rates stood at $3.13. Knoxville With no space currently under construction, Knoxville absorbed (138,282) square feet of space and delivered 320,000 square feet of space, resulting in a vacancy rate that went from 8.0% to 8.6% over the course of the quarter. Rental rates went from $3.65 to $3.72 per square foot. Lafayette With no space currently under construction, Lafayette absorbed 41,362 square feet of space and delivered 40,364 square feet of space, resulting in a vacancy rate that went from 12.6% to 12.5% over the course of the quarter. Rental rates went from $4.18 to $4.24 per square foot. Las Vegas The Las Vegas Industrial market saw vacancies rise and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 11.0%, from 10.8% in the previous quarter. Rental rates ended the quarter at $6.13 per square foot, from $6.09 in the previous quarter. There was a total of 368,845 square feet that delivered in the quarter, with 51,097 square feet still under construction at the end of the quarter. Lexington/Fayette and positive 37,762 square feet of net absorption, Lexington/ Fayette s vacancy rate remained at 4.3%. Rental rates went from $4.56 to $4.81 during that time. At the end of the quarter, there was 10,000 square feet underway for future delivery. Lincoln With no space currently under construction, Lincoln absorbed (215,984) square feet of space and delivered 19,100 square feet of space, resulting in a vacancy rate that went from 2.3% to 3.2% over the course of the quarter. Rental rates went from $3.60 to $3.58 per square foot. Little Rock/N Little Rock The Little Rock/N Little Rock Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of negative (17,835) square feet caused the vacancy rate to increase from 8.4% to 8.5% in the quarter. Rental rates stood at $3.28. Long Island (New York) and negative (25,629) square feet of net absorption, Long Island (New York) s vacancy rate remained at 5.1%. Rental rates went from $11.71 to $11.96 during that time. At the end of the quarter, there was 545,547 square feet underway for future delivery. Los Angeles The Los Angeles Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 4.5%, from 4.7% in the previous quarter. Rental rates ended the quarter at $7.76 per square foot, from $7.60 in the previous quarter. There was a total of 393,847 square feet that delivered in the quarter, with 1,802,544 square feet still under construction at the Louisville The Louisville Industrial market saw vacancies fall and rental rates change from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 6.6%, from 7.1% in the previous quarter. Rental rates remained at $3.50 per square foot. There was a total of 78,512 square feet that delivered in the quarter, with 1,037,000 square feet still under construction at the Lubbock The Lubbock Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of positive 61,964 square feet caused the vacancy rate to decrease from 2.4% to 2.2% in the quarter. Rental rates stood at $3.84. Madison and negative (103,363) square feet of net absorption, Madison s vacancy rate went from 7.0% to 7.1% in the quarter. Rental rates went from $3.89 to $4.12 during that time. At the end of the quarter, there was 150,431 square feet underway for future delivery. Marin/Sonoma and positive 213,332 square feet of net absorption, Marin/ Sonoma s vacancy rate went from 6.3% to 5.8% in the quarter. Rental rates went from $9.34 to $9.94 during that time. At the end of the quarter, there was 18,000 square feet underway for future delivery. McAllen/Edinburg/Pharr and positive 22,324 square feet of net absorption, McAllen/ Edinburg/Pharr s vacancy rate went from 13.4% to 13.3% in the 8 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

14 National Industrial Market OVERVIEW FIRST QUARTER 2014 NATIONAL quarter. Rental rates went from $4.33 to $4.41 during that time. At the end of the quarter, there was 60,000 square feet underway for future delivery. Memphis The Memphis Industrial market saw vacancies rise and rental rates decrease from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 12.2%, from 12.1% in the previous quarter. Rental rates ended the quarter at $2.90 per square foot, from $2.92 in the previous quarter. There was a total of 514,980 square feet that delivered in the quarter, with 2,265,252 square feet still under construction at the end of the quarter. Miami-Dade County The Miami-Dade County Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 6.0%, from 6.3% in the previous quarter. Rental rates ended the quarter at $8.32 per square foot, from $8.25 in the previous quarter. There was a total of 180,025 square feet that delivered in the quarter, with 1,640,902 square feet still under construction at the Milwaukee The Milwaukee Industrial market saw vacancies fall and rental rates decrease from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 6.9%, from 7.2% in the previous quarter. Rental rates ended the quarter at $4.17 per square foot, from $4.24 in the previous quarter. There was a total of 120,900 square feet that delivered in the quarter, with 720,689 square feet still under construction at the Minneapolis The Minneapolis Industrial market saw vacancies fall and rental rates decrease from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 6.2%, from 6.4% in the previous quarter. Rental rates ended the quarter at $6.04 per square foot, from $6.10 in the previous quarter. There was a total of 285,000 square feet that delivered in the quarter, with 1,115,958 square feet still under construction at the Mobile The Mobile Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of positive 267,963 square feet caused the vacancy rate to decrease from 12.2% to 11.3% in the quarter. Rental rates stood at $4.19. Montgomery The Montgomery Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of positive 68,150 square feet caused the vacancy rate to decrease from 15.5% to 15.2% in the quarter. Rental rates stood at $3.15. Myrtle Beach/Conway The Myrtle Beach/Conway Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of negative (35,550) square feet caused the vacancy rate to increase from 8.6% to 9.2% in the quarter. Rental rates stood at $4.55. Nashville The Nashville Industrial market saw vacancies rise and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 8.6%, from 8.4% in the previous quarter. Rental rates ended the quarter at $3.85 per square foot, from $3.83 in the previous quarter. There was a total of 240,000 square feet that delivered in the quarter, with 160,047 square feet still under construction at the New Orleans/Metairie/Kenner and positive 59,634 square feet of net absorption, New Orleans/ Metairie/Kenner s vacancy rate went from 7.3% to 7.2% in the quarter. Rental rates went from $5.12 to $5.21 during that time. At the end of the quarter, there was 5,584 square feet underway for future delivery. Northern New Jersey The Northern New Jersey Industrial market saw vacancies rise and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 8.4%, from 8.3% in the previous quarter. Rental rates ended the quarter at $5.92 per square foot, from $5.87 in the previous quarter. There was a total of 1,091,244 square feet that delivered in the quarter, with 6,303,669 square feet still under construction at the Ocala The Ocala Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of positive 30,730 square feet caused the vacancy rate to decrease from 7.4% to 7.2% in the quarter. Rental rates stood at $3.70. Oklahoma City The Oklahoma City Industrial market saw vacancies rise and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 6.2%, from 6.1% in the previous quarter. Rental rates ended the quarter at $4.55 per square foot, from $4.43 in the previous quarter COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 9

15 NATIONAL FIRST QUARTER 2014 National Industrial Market OVERVIEW There was a total of 375,976 square feet that delivered in the quarter, with 261,901 square feet still under construction at the Olympia The Olympia Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of positive 27,465 square feet caused the vacancy rate to decrease from 8.8% to 8.6% in the quarter. Rental rates stood at $5.26. Omaha/Council Bluffs The Omaha/Council Bluffs Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 4.2%, from 4.3% in the previous quarter. Rental rates ended the quarter at $4.61 per square foot, from $4.51 in the previous quarter. There was a total of 79,851 square feet that delivered in the quarter, with 24,000 square feet still under construction at the Orange County (California) and positive 538,896 square feet of net absorption, Orange County (California) s vacancy rate went from 4.7% to 4.5% in the quarter. Rental rates went from $8.72 to $8.82 during that time. At the end of the quarter, there was 13,530 square feet underway for future delivery. Orlando The Orlando Industrial market saw vacancies rise and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 9.5%, from 9.4% in the previous quarter. Rental rates ended the quarter at $5.41 per square foot, from $5.37 in the previous quarter. There was a total of 74,814 square feet that delivered in the quarter, with 1,351,091 square feet still under construction at the end of the quarter. Palm Beach County The Palm Beach County Industrial market saw vacancies rise and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 6.7%, from 6.6% in the previous quarter. Rental rates ended the quarter at $8.65 per square foot, from $8.59 in the previous quarter. There was a total of 210,400 square feet that delivered in the quarter, with 650,000 square feet still under construction at the Pensacola The Pensacola Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of positive 31,162 square feet caused the vacancy rate to decrease from 7.1% to 6.9% in the quarter. Rental rates stood at $4.46. Peoria The Peoria Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of negative (21,572) square feet caused the vacancy rate to increase from 6.7% to 6.8% in the quarter. Rental rates stood at $3.74. Philadelphia The Philadelphia Industrial market saw vacancies rise and rental rates decrease from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 8.8%, from 8.7% in the previous quarter. Rental rates ended the quarter at $4.52 per square foot, from $4.60 in the previous quarter. There was a total of 214,056 square feet that delivered in the quarter, with 9,801,800 square feet still under construction at the Phoenix The Phoenix Industrial market saw vacancies rise and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 13.1%, from 12.5% in the previous quarter. Rental rates ended the quarter at $6.68 per square foot, from $6.53 in the previous quarter. There was a total of 2,790,757 square feet that delivered in the quarter, with 2,551,721 square feet still under construction at the end of the quarter. Pittsburgh The Pittsburgh Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 7.3%, from 7.7% in the previous quarter. Rental rates ended the quarter at $5.29 per square foot, from $5.17 in the previous quarter. There was a total of 40,000 square feet that delivered in the quarter, with 791,403 square feet still under construction at the end of the quarter. Port St Lucie/Fort Pierce The Port St Lucie/Fort Pierce Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of positive 146,241 square feet caused the vacancy rate to decrease from 9.5% to 8.8% in the quarter. Rental rates stood at $6.65. Portland and positive 212,086 square feet of net absorption, Portland s vacancy rate went from 5.8% to 5.7% in the quarter. Rental rates went from $6.18 to $6.26 during that time. At the end of the quarter, there was 2,863,746 square feet underway for future delivery. Portland/South Portland 10 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

16 National Industrial Market OVERVIEW FIRST QUARTER 2014 NATIONAL and positive 74,031 square feet of net absorption, Portland/South Portland s vacancy rate went from 6.2% to 6.0% in the quarter. Rental rates went from $4.66 to $4.55 during that time. At the end of the quarter, there was 3,125 square feet underway for future delivery. Providence The Providence Industrial market saw vacancies rise and rental rates decrease from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 7.6%, from 7.0% in the previous quarter. Rental rates ended the quarter at $4.49 per square foot, from $4.56 in the previous quarter. There was a total of 30,000 square feet that delivered in the quarter, with 256,235 square feet still under construction at the end of the quarter. Raleigh/Durham The Raleigh/Durham Industrial market saw vacancies fall and rental rates decrease from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 9.1%, from 9.4% in the previous quarter. Rental rates ended the quarter at $5.21 per square foot, from $5.40 in the previous quarter. There was a total of 42,576 square feet that delivered in the quarter, with 234,246 square feet still under construction at the Reno/Sparks The Reno/Sparks Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 9.9%, from 10.1% in the previous quarter. Rental rates ended the quarter at $4.08 per square foot, from $4.05 in the previous quarter. There was a total of 524,800 square feet that delivered in the quarter, with 1,331,010 square feet still under construction at the Richmond VA With no space currently under construction, Richmond VA absorbed 318,906 square feet of space and delivered 10,400 square feet of space, resulting in a vacancy rate that went from 9.3% to 8.7% over the course of the quarter. Rental rates went from $3.73 to $4.09 per square foot. Roanoke The Roanoke Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of positive 22,075 square feet caused the vacancy rate to decrease from 10.4% to 10.3% in the quarter. Rental rates stood at $3.57. Rochester and negative (262,048) square feet of net absorption, Rochester s vacancy rate went from 9.6% to 9.8% in the quarter. Rental rates went from $4.18 to $4.28 during that time. At the end of the quarter, there was 44,528 square feet underway for future delivery. Sacramento and positive 651,991 square feet of net absorption, Sacramento s vacancy rate went from 11.9% to 11.6% in the quarter. Rental rates went from $5.03 to $5.00 during that time. At the end of the quarter, there was 767,406 square feet underway for future delivery. Salinas The Salinas Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of positive 279,601 square feet caused the vacancy rate to decrease from 8.2% to 6.8% in the quarter. Rental rates stood at $5.22. Salt Lake City The vacancy rate remained unchanged in Salt Lake City in the first quarter. With 116,783 square feet in deliveries, and positive 263,750 square feet in net absorption, the vacancy rate held at 4.0%, the same rate reported in the previous quarter. The market had 361,582 square feet under construction at the end of the quarter, and rental rates stood at $4.74 per square foot. San Antonio The San Antonio Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 5.6%, from 5.9% in the previous quarter. Rental rates ended the quarter at $5.75 per square foot, from $5.68 in the previous quarter. There was a total of 1,194,091 square feet that delivered in the quarter, with 571,506 square feet still under construction at the San Diego The San Diego Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 7.8%, from 8.2% in the previous quarter. Rental rates ended the quarter at $10.35 per square foot, from $10.18 in the previous quarter. There was a total of 226,579 square feet that delivered in the quarter, with 115,000 square feet still under construction at the San Francisco The San Francisco Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorp COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 11

17 NATIONAL FIRST QUARTER 2014 National Industrial Market OVERVIEW tion of positive 108,263 square feet caused the vacancy rate to decrease from 6.0% to 5.8% in the quarter. Rental rates stood at $ San Luis Obispo/Paso Robles The San Luis Obispo/Paso Robles Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of negative (8,809) square feet caused the vacancy rate to increase from 3.8% to 3.9% in the quarter. Rental rates stood at $8.85. Santa Barbara/Sta Maria/Gole With no space currently under construction, Santa Barbara/ Sta Maria/Gole absorbed 121,680 square feet of space and delivered 142,000 square feet of space, resulting in a vacancy rate that went from 3.9% to 4.0% over the course of the quarter. Rental rates went from $9.45 to $9.65 per square foot. Santa Cruz/Watsonville The Santa Cruz/Watsonville Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of negative (51,616) square feet caused the vacancy rate to increase from 6.0% to 6.5% in the quarter. Rental rates stood at $9.94. Savannah The Savannah Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of positive 1,051,157 square feet caused the vacancy rate to decrease from 11.7% to 9.5% in the quarter. Rental rates stood at $3.84. Seattle/Puget Sound The vacancy rate remained unchanged in Seattle/Puget Sound in the first quarter. With 882,982 square feet in deliveries, and positive 993,026 square feet in net absorption, the vacancy rate held at 5.7%, the same rate reported in the previous quarter. The market had 1,885,455 square feet under construction at the end of the quarter, and rental rates stood at $7.21 per square foot. Shreveport/Bossier City The Shreveport/Bossier City Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of negative (45,245) square feet caused the vacancy rate to increase from 31.6% to 31.8% in the quarter. Rental rates stood at $3.08. South Bay/San Jose and positive 541,397 square feet of net absorption, South Bay/ San Jose s vacancy rate went from 9.9% to 8.8% in the quarter. Rental rates went from $14.28 to $14.49 during that time. At the end of the quarter, there was 430,532 square feet underway for future delivery. South Bend/Mishawaka The South Bend/Mishawaka Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of positive 566,138 square feet caused the vacancy rate to decrease from 7.9% to 6.2% in the quarter. Rental rates stood at $3.05. Southwest Florida With no space currently under construction, Southwest Florida absorbed 4,804 square feet of space and delivered 17,000 square feet of space, resulting in a vacancy rate that remained at 7.3% over the course of the quarter. Rental rates went from $5.75 to $5.82 per square foot. Spokane and negative (53,454) square feet of net absorption, Spokane s vacancy rate went from 4.8% to 4.9% in the quarter. Rental rates went from $4.52 to $4.53 during that time. At the end of the quarter, there was 200,000 square feet underway for future delivery. Springfield With no space currently under construction, Springfield absorbed 126 square feet of space and delivered 2,580 square feet of space, resulting in a vacancy rate that remained at 10.8% over the course of the quarter. Rental rates went from $4.29 to $4.27 per square foot. St. Louis The St. Louis Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 7.9%, from 8.1% in the previous quarter. Rental rates ended the quarter at $3.99 per square foot, from $3.97 in the previous quarter. There was a total of 227,500 square feet that delivered in the quarter, with 500,000 square feet still under construction at the end of the quarter. Stockton/Modesto and positive 284,692 square feet of net absorption, Stockton/ Modesto s vacancy rate went from 9.9% to 9.7% in the quarter. Rental rates went from $3.87 to $3.84 during that time. At the end of the quarter, there was 939,000 square feet underway for future delivery. Syracuse With no space currently under construction, Syracuse 12 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

18 National Industrial Market OVERVIEW FIRST QUARTER 2014 NATIONAL absorbed 158,427 square feet of space and delivered 132,777 square feet of space, resulting in a vacancy rate that went from 11.1% to 11.0% over the course of the quarter. Rental rates went from $3.46 to $3.47 per square foot. Tallahassee The Tallahassee Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of negative (45,575) square feet caused the vacancy rate to increase from 8.2% to 8.5% in the quarter. Rental rates stood at $4.87. Tampa/St Petersburg The Tampa/St Petersburg Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 9.4%, from 9.6% in the previous quarter. Rental rates ended the quarter at $5.14 per square foot, from $5.05 in the previous quarter. There was a total of 660,149 square feet that delivered in the quarter, with 1,182,800 square feet still under construction at the Toledo The Toledo Industrial market saw vacancies fall and rental rates decrease from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 7.7%, from 7.8% in the previous quarter. Rental rates ended the quarter at $3.00 per square foot, from $3.04 in the previous quarter. There was a total of 29,918 square feet that delivered in the quarter, with 1,814 square feet still under construction at the Tucson With no space currently under construction, Tucson absorbed (45,090) square feet of space and delivered 56,091 square feet of space, resulting in a vacancy rate that went from 11.1% to 11.3% over the course of the quarter. Rental rates went from $6.28 to $6.39 per square foot. Tulsa The vacancy rate remained unchanged in Tulsa in the first quarter. With 85,000 square feet in deliveries, and positive 52,030 square feet in net absorption, the vacancy rate held at 5.0%, the same rate reported in the previous quarter. The market had 167,723 square feet under construction at the end of the quarter, and rental rates stood at $4.13 per square foot. Utica/Rome and positive 4,340 square feet of net absorption, Utica/Rome s vacancy rate remained at 12.3%. Rental rates went from $2.89 to $2.93 during that time. At the end of the quarter, there was 63,170 square feet underway for future delivery. Visalia/Porterville and positive 294,850 square feet of net absorption, Visalia/ Porterville s vacancy rate went from 6.4% to 5.5% in the quarter. Rental rates went from $3.82 to $3.86 during that time. At the end of the quarter, there was 9,955 square feet underway for future delivery. Washington The Washington Industrial market saw vacancies fall and rental rates decrease from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 10.1%, from 10.3% in the previous quarter. Rental rates ended the quarter at $9.67 per square foot, from $9.69 in the previous quarter. There was a total of 326,740 square feet that delivered in the quarter, with 1,577,790 square feet still under construction at the West Michigan and positive 372,604 square feet of net absorption, West Michigan s vacancy rate went from 6.1% to 6.0% in the quarter. Rental rates went from $3.25 to $3.25 during that time. At the end of the quarter, there was 763,200 square feet underway for future delivery. Westchester/So Connecticut The Westchester/So Connecticut Industrial market saw vacancies fall and rental rates decrease from the fourth quarter 2013 to the first quarter The overall vacancy rate currently sits at 10.5%, from 10.6% in the previous quarter. Rental rates ended the quarter at $7.29 per square foot, from $7.38 in the previous quarter. There was a total of 38,000 square feet that delivered in the quarter, with 24,550 square feet still under construction at the Wichita The Wichita Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of positive 143,687 square feet caused the vacancy rate to decrease from 4.8% to 4.5% in the quarter. Rental rates stood at $4.18. Wilmington and positive 91,060 square feet of net absorption, Wilmington s vacancy rate went from 18.2% to 17.7% in the quarter. Rental rates went from $3.50 to $3.40 during that time. At the end of the quarter, there was 14,625 square feet underway for future delivery. Yakima The Yakima Industrial market reported no new deliveries and no space under construction at the end of the first quarter With this limited construction activity, net absorption of positive 2,352 square feet caused the vacancy rate to remain at 4.4%. Rental rates stood at $ COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 13

19 NATIONAL FIRST QUARTER 2014 National Industrial Market INVENTORY & DEVELOPMENT Historical Deliveries Millions SF Deliveries Average Delivered SF Source: CoStar Property * Future deliveries based on current under construction buildings. Construction Activity Markets Ranked by Under Construction Square Footage Under Construction Inventory Average Bldg Size Market # Bldgs Total RBA Preleased SF Preleased % All Existing U/C Dallas/Ft Worth 38 14,440,861 3,482, % 39, ,023 Inland Empire (California) 32 13,710,685 5,930, % 40, ,459 Philadelphia 19 9,801,800 8,470, % 50, ,884 Northern New Jersey 17 6,303,669 3,487, % 46, ,804 Houston 56 4,715,285 1,183, % 30,360 84,202 Chicago 14 4,324,488 1,083, % 51, ,892 Atlanta 9 4,276,846 4,199, % 40, ,205 Baltimore 8 3,715,118 3,415, % 50, ,390 Portland 11 2,863,746 2,102, % 32, ,341 Denver 29 2,826,450 1,324, % 28,065 97,464 Phoenix 21 2,551,721 1,369, % 30, ,511 East Bay/Oakland 8 2,355,436 1,084, % 32, ,429 Memphis 4 2,265,252 1,395, % 63, ,313 Indianapolis 5 2,187,530 1,043, % 47, ,506 Greensboro/Winston-Salem 4 2,186,560 2,051, % 41, ,640 Charlotte 8 1,970,123 1,102, % 39, ,265 Kansas City 9 1,916, , % 39, ,908 Seattle/Puget Sound 7 1,885,455 89, % 36, ,351 Los Angeles 18 1,802, , % 26, ,141 Miami-Dade County 12 1,640, , % 26, ,742 Washington 14 1,577, , % 35, ,699 Hartford 1 1,500,000 1,500, % 35,368 1,500,000 Orlando 6 1,351, , % 25, ,182 Reno/Sparks 2 1,331, , % 45, ,505 Cincinnati 2 1,280, % 44, ,282 Columbus 6 1,275, , % 50, ,661 Tampa/St Petersburg 7 1,182,800 1,152, % 22, ,971 Minneapolis 9 1,115, , % 38, ,995 Louisville 3 1,037, , % 39, ,667 Stockton/Modesto 1 939, , % 45, ,000 Detroit , , % 33,136 83,432 Greenville/Spartanburg 5 800, , % 40, ,144 Pittsburgh 5 791, , % 36, ,281 Sacramento 6 767, , % 29, ,901 West Michigan 3 763, , % 36, ,400 Milwaukee 6 720, , % 40, ,115 Birmingham 4 682, , % 32, ,687 Boston , , % 41,074 54,920 Palm Beach County 1 650, , % 18, ,000 San Antonio , , % 25,540 57,151 Long Island (New York) 4 545, , % 24, ,387 Columbia 2 511, , % 27, ,750 St. Louis 1 500, , % 43, ,000 Totals ,737,565 62,124, % 33, ,359 Source: CoStar Property 14 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

20 National Industrial Market INVENTORY & DEVELOPMENT FIRST QUARTER 2014 NATIONAL Historical Construction Starts & Deliveries* Square Footage Per Quarter Starting and Completing Construction 40.0 Construction Starts Deliveries Millions SF q q q q q q q q q q q q q q q q q Source: CoStar Property * Select markets included in this historical chart - see Methodology page. Recent Deliveries by Project Size Breakdown of Year-to-Date Development Based on RBA of Project Building Size # Bldgs RBA SF Leased % Leased Avg Rate Single Tenant Multi-Tenant < 50,000 SF 168 2,566,013 1,473, % $9.19 1,368,176 1,197,837 50,000 SF - 99,999 SF 30 2,139,954 1,602, % $6.65 1,169, , ,000 SF - 249,999 SF 33 4,795,736 3,226, % $5.77 2,362,792 2,432, ,000 SF - 499,999 SF 25 8,759,358 5,873, % $6.60 4,985,417 3,773,941 >= 500,000 SF 11 8,695,626 4,266, % $3.62 5,818,104 2,877,522 Source: CoStar Property Recent Deliveries Leased & Un-Leased SF in Deliveries Last 5 Years Future Deliveries Preleased & Un-Leased SF in Properties Scheduled to Deliver Leased Un-Leased 50.0 Preleased Un-Leased Millions SF Millions SF q q q q 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 15

21 NATIONAL FIRST QUARTER 2014 National Industrial Market INVENTORY & DEVELOPMENT 16 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

22 National Industrial Market INVENTORY & DEVELOPMENT FIRST QUARTER 2014 NATIONAL 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 17

23 NATIONAL FIRST QUARTER 2014 National Industrial Market FIGURES AT A GLANCE Flex Market Statistics First Quarter 2014 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Albany/Schenect 326 9,070, , , % 11, $10.10 Albuquerque 136 3,502, , , % 17, $12.00 Anchorage 138 2,652,802 72,879 77, % (1,234) 0 0 $16.58 Asheville 246 3,573, , , % (22,103) 0 0 $8.79 Atlanta 4,221 69,122,160 9,284,688 9,443, % 199, $7.96 Augusta/Richmo 413 3,179, , , % (21,074) 0 20,800 $6.46 Austin ,226,041 3,240,964 3,334, % (618,818) 0 0 $10.98 Bakersfield 210 2,271, , , % (749) 0 0 $8.89 Baltimore 1,324 48,045,656 4,428,047 4,624, % 252, ,120 $11.20 Baton Rouge 183 2,394, , , % (1,005) 0 0 $8.04 Beaumont/Port A 171 1,642,184 70,750 70, % (1,500) 0 0 $5.94 Birmingham ,002, , , % (55,671) 0 21,879 $8.74 Boise City/Namp 245 4,242, , , % 29, $8.40 Boston 2, ,926,613 13,393,676 13,590, % 219,778 47,946 26,000 $9.63 Bremerton/Silver ,016 21,562 21, % 1, $11.77 Broward County 1,070 19,532,158 1,649,524 1,661, % 108,813 11,520 0 $11.42 Brownsville/Harl 7 149,677 11,016 11, % $0.00 Buffalo/Niagara 142 5,739, , , % (7,263) 0 0 $9.78 Charleston WV ,185 72,545 72, % $5.00 Charleston/N Ch 534 5,376, , , % (14,388) 0 0 $10.39 Charlotte 1,149 29,090,004 3,189,523 3,217, % 113, $8.73 Chattanooga 243 3,835, , , % 6, $6.41 Chicago 2,223 75,685,726 8,828,673 8,902, % 268, ,288 $10.34 Cincinnati 297 7,718,253 1,196,463 1,219, % (33,301) 0 0 $7.91 Cleveland ,652,953 2,300,328 2,325, % (42,893) 0 0 $8.36 Colorado Springs 264 6,312,073 1,026,708 1,141, % 61, $7.55 Columbia 699 6,376, , , % 29, ,000 $7.98 Columbus ,910,136 1,185,218 1,195, % 53, $7.72 Columbus GA 255 3,781, , , % 12, $7.02 Corpus Christi 60 1,070,585 95, , % 12, $9.13 Dallas/Ft Worth 7, ,569,169 13,625,909 13,815, % 568,088 8, ,492 $8.90 Davenport/Molin ,809 25,012 25, % 12, $7.92 Dayton 198 3,684, , , % (17,344) 0 0 $9.52 Deltona/Dayton 113 1,495, , , % 18,245 30,765 0 $7.99 Denver 1,732 48,689,418 5,589,067 6,165, % 367,660 73, ,196 $9.50 Des Moines 217 8,385, , , % 35, $5.91 Detroit 1,338 48,402,320 5,434,519 5,558, % (1,347) 0 5,000 $8.10 Duluth ,299 23,000 23, % $12.12 East Bay/Oaklan 1,598 56,706,352 7,861,640 8,093, % 175, $12.34 El Paso 347 6,158, , , % (12,533) 0 0 $13.30 Erie ,485 3,273 3, % $6.54 Evansville 76 3,567, , , % 2, $4.90 Fayetteville 102 1,014, , , % (7,480) 0 0 $8.74 Fayetteville/Sprin 162 2,197,819 69,979 69, % (2,081) 0 0 $7.60 Fort Smith ,662 13,680 13, % $6.18 Fort Wayne 151 3,813, , , % 8, $7.20 Fresno 102 1,757, , , % 16, $7.78 Source: CoStar Property 18 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

24 National Industrial Market FIGURES AT A GLANCE FIRST QUARTER 2014 NATIONAL Flex Market Statistics First Quarter 2014 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Green Bay 296 8,371, , , % 4, $6.91 Greensboro/Win 435 8,339,249 1,396,912 1,398, % (45,039) 0 0 $7.13 Greenville/Sparta ,183,011 1,723,604 1,724, % 43, ,000 $7.19 Hampton Roads ,349,809 1,603,704 1,628, % 97,774 48,785 0 $9.13 Hartford 1,164 25,261,214 2,308,715 2,359, % (1,791) 0 0 $7.71 Hawaii 75 1,684,667 96,987 96, % (6,605) 0 11,500 $15.04 Houston 1,907 48,574,528 4,107,833 4,266, % (78,497) 21,708 45,050 $8.85 Huntington/Ash 124 1,324,823 85,094 85, % (7,400) 0 0 $7.67 Huntsville 144 5,697, , , % 82, $9.86 Indianapolis 1,006 25,229,580 3,154,213 3,186, % 36, $8.45 Inland Empire (C ,837,845 1,301,111 1,311, % 189, $10.52 Jackson 118 2,068, , , % 12, $6.53 Jacksonville (Flor 310 7,471, , , % 56, $8.76 Kansas City ,407,119 1,094,082 1,108, % 40, $8.19 Killeen/Temple/F ,521 10,000 10, % $8.00 Kingsport/Bristol 31 1,014,549 38,610 38, % 38, $5.05 Knoxville ,258, , , % 7, $6.97 Lafayette ,455 28,400 28, % 20, $0.00 Las Vegas ,493,094 2,507,544 2,514, % 94, $9.34 Lexington/Fayet 169 3,305, , , % (44,021) 0 0 $6.94 Lincoln 172 2,221,929 40,404 40, % (3,312) 0 0 $4.96 Little Rock/N Litt 568 8,805, , , % (14,005) 0 0 $6.35 Long Island (New ,409,526 2,429,653 2,441, % 25, $21.04 Los Angeles 2,803 61,076,522 4,591,685 4,733, % 269, $16.54 Louisville 458 9,983, , , % 27, $7.42 Lubbock 20 1,038,405 15,500 22, % 4, $5.60 Madison 250 7,643, , , % (4,893) 0 64,151 $8.09 Marin/Sonoma 454 9,709, ,190 1,037, % 3, $14.82 McAllen/Edinbur ,886 46,184 46, % (1,000) 0 0 $9.36 Memphis 497 9,395,387 1,870,245 1,876, % 5, ,000 $6.97 Miami-Dade Cou ,884,896 1,298,518 1,304, % 147, $12.75 Milwaukee 1,281 43,288,708 2,245,308 2,410, % 42, $6.99 Minneapolis 1,825 74,216,162 7,244,826 7,364, % (143,666) 0 214,373 $8.32 Mobile 239 2,348, , , % $5.95 Montgomery 190 2,369, , , % 7, $8.06 Myrtle Beach/Co 204 2,190,474 95, , % (20,150) 0 0 $6.37 Nashville ,590,499 1,373,514 1,377, % 125, ,550 $9.04 New Orleans/M 233 3,051, , , % (12,597) 0 0 $8.13 Northern New Je 1,429 54,870,344 7,150,368 7,581, % 36, $11.15 Ocala ,319 57,029 57, % $8.23 Oklahoma City 520 9,231,980 1,296,506 1,296, % 75, ,827 $7.34 Olympia ,767 27,975 27, % 6, $8.53 Omaha/Council 320 6,788, , , % (43,846) 0 14,000 $7.04 Orange County 3,209 69,588,441 4,053,621 4,185, % 53, ,530 $11.90 Orlando 1,376 28,380,834 3,446,941 3,569, % 20, ,000 $8.48 Palm Beach Cou ,933, ,782 1,006, % 35, $11.27 Pensacola 149 1,763, , , % 2, $5.66 Source: CoStar Property 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 19

25 NATIONAL FIRST QUARTER 2014 National Industrial Market FIGURES AT A GLANCE Flex Market Statistics First Quarter 2014 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Peoria 88 1,173,712 57,501 57, % $8.91 Philadelphia 3,253 84,065,465 9,864,179 10,043, % 489, ,056 42,000 $9.05 Phoenix 1,136 33,856,099 6,636,610 6,904, % (222,449) 0 154,067 $11.78 Pittsburgh ,880,768 1,737,669 1,778, % 83, ,000 $11.94 Port St Lucie/For 164 2,550, , , % 20, $9.02 Portland ,022,588 1,661,013 1,744, % (3,630) 0 1,809,361 $10.95 Portland/South P 161 3,494, , , % 2, $5.00 Providence 171 4,647, , , % 18, $10.01 Raleigh/Durham 1,568 30,003,631 2,625,523 2,676, % 100,230 12,576 0 $10.05 Reno/Sparks 367 8,560, , , % 101, $7.63 Richmond VA ,414,659 1,640,327 1,646, % 53,782 10,400 0 $7.77 Roanoke 160 1,970, , , % 15, $6.96 Rochester ,640,160 2,229,235 2,231, % 9, ,000 $8.95 Sacramento 1,078 22,793,261 3,808,003 3,841, % (8,441) 0 25,242 $9.52 Salinas ,684 53, , % (8,141) 0 0 $13.27 Salt Lake City 1,233 24,722,948 1,177,024 1,183, % (23,177) 0 82,000 $7.34 San Antonio ,345,037 1,184,164 1,189, % 75,193 75,000 63,360 $9.44 San Diego 1,855 44,913,198 4,899,447 5,244, % 137, $14.65 San Francisco ,355,194 2,016,084 2,151, % $23.01 San Luis Obispo/ ,727 84,274 84, % 3, $11.22 Santa Barbara/St 164 3,947, , , % (27,653) 0 0 $11.75 Santa Cruz/Wats 90 2,313, , , % 16, $12.31 Savannah 137 1,424,461 88,227 88, % 7, $10.62 Seattle/Puget So 1,024 30,708,169 3,098,766 3,217, % 82,809 11,536 0 $14.44 Shreveport/Boss 246 2,507, , , % (200) 0 0 $6.18 South Bay/San Jo 2, ,080,327 11,924,812 12,986, % 252, ,532 $17.32 South Bend/Mish 79 2,549, , , % (7,170) 0 0 $5.30 Southwest Florid 380 6,140, , , % 20,334 17,000 0 $7.20 Spokane 263 4,037, , , % (6,041) 0 0 $7.41 Springfield ,038 44,109 44, % 4, $5.18 St. Louis ,421,283 1,441,149 1,508, % (57,078) 0 0 $7.69 Stockton/Modes 111 4,064, , , % (7,494) 0 0 $10.19 Syracuse 599 7,994, , , % 17,240 25,000 0 $7.71 Tallahassee 120 2,735, , , % (30,750) 0 0 $8.60 Tampa/St Peters 1,455 29,580,677 4,391,576 4,457, % 50,275 98,618 0 $8.12 Toledo 399 7,014, , , % 22, $6.23 Tucson 469 9,674,970 1,357,702 1,357, % (71,041) 48,644 0 $8.16 Tulsa 304 6,447, , , % 99,387 80,000 0 $6.03 Utica/Rome 171 2,444,752 96,154 96, % 2, $6.78 Visalia/Porterville ,260 11,240 11, % 10, $6.11 Washington 1,554 65,768,719 8,350,929 8,526, % 353, , ,850 $12.70 West Michigan ,472,423 1,289,587 1,289, % (136,879) 0 43,200 $7.37 Westchester/So ,638,927 3,065,647 3,092, % 120, ,800 $10.36 Wichita 57 1,465, , , % (18,795) 0 0 $8.03 Wilmington 496 5,447, , , % 43, ,625 $7.46 Yakima ,328 2,000 2, % $9.58 Youngstown/Wa , , , % (2,020) 0 0 $4.78 Totals 89,854 2,258,246, ,251, ,043, % 4,516, ,509 4,632,793 $10.71 Source: CoStar Property 20 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

26 National Industrial Market FIGURES AT A GLANCE FIRST QUARTER 2014 NATIONAL Warehouse Market Statistics First Quarter 2014 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Albany/Schenect 2,300 89,753,817 6,530,052 6,563, % (33,385) 80, ,493 $4.15 Albuquerque 2,416 47,094,902 3,509,198 3,522, % (43,847) 101,500 15,000 $5.91 Anchorage ,344, , , % 9,357 2,840 0 $12.13 Asheville ,540,830 1,444,649 1,444, % 17,915 14,300 0 $3.42 Atlanta 11, ,628,690 57,427,180 59,444, % 4,529, ,000 4,276,846 $3.44 Augusta/Richmo ,274,178 2,661,192 2,661, % 227, ,000 $2.55 Austin 3,171 69,948,512 4,967,772 5,077, % (516,508) 301, ,947 $6.28 Bakersfield 1,258 25,363, , , % (31,185) 0 6,967 $6.01 Baltimore 3, ,935,832 15,486,112 15,679, % 704, ,684,998 $4.87 Baton Rouge 1,200 21,483,705 2,424,823 2,500, % (69,759) 30,275 50,000 $4.94 Beaumont/Port A 461 9,018, , , % (32,177) 0 0 $4.66 Birmingham 3, ,843,916 12,295,208 12,450, % (7,712) 0 660,869 $3.15 Boise City/Namp 1,665 37,583,009 2,823,040 2,847, % (134,990) 0 25,000 $4.87 Boston 9, ,984,201 29,362,788 30,457, % 348,465 62, ,045 $5.29 Bremerton/Silver 191 2,130, , , % 28, $5.93 Broward County 5, ,604,490 8,289,175 8,431, % 229, , ,600 $7.47 Brownsville/Harl 276 9,987,212 1,585,236 1,585, % 3, $3.52 Buffalo/Niagara 1,345 62,268,743 6,106,190 6,405, % 103, $3.64 Charleston WV ,929, , , % 15, $6.02 Charleston/N Ch 2,155 58,782,923 4,152,698 4,427, % 452,004 6, ,000 $4.37 Charlotte 6, ,355,576 27,058,020 27,368, % 880, ,423 1,970,123 $3.32 Chattanooga ,939,625 5,411,758 5,461, % (20,135) 0 201,050 $2.98 Chicago 20,130 1,074,245,684 88,164,678 89,511, % 1,927,820 1,308,166 4,274,200 $4.86 Cincinnati 6, ,119,214 17,776,786 18,790, % 1,509, ,280,564 $3.27 Cleveland 11, ,516,229 34,707,933 35,349, % 285, , ,576 $3.39 Colorado Springs 1,596 26,856,580 1,554,397 1,611, % 216, ,220 0 $5.67 Columbia 1,290 49,300,098 4,314,262 4,407, % 883, ,500 $3.69 Columbus 4, ,285,783 16,296,911 16,579, % 1,584, ,589 1,275,969 $3.03 Columbus GA ,156,468 1,818,004 1,818, % 87, $2.62 Corpus Christi 1,359 19,064, , , % 64,490 30,000 18,300 $6.07 Dallas/Ft Worth 13, ,894,387 43,067,329 43,877, % 4,109,538 4,989,195 14,323,369 $4.08 Davenport/Molin ,938, , , % 6, $3.70 Dayton 3, ,722,714 15,820,717 15,872, % (360,005) 0 0 $3.06 Deltona/Dayton 1,292 17,913,703 1,341,843 1,393, % 105, ,000 $4.92 Denver 8, ,986,040 8,652,404 9,201, % 991, ,932 2,437,254 $5.55 Des Moines 1,319 48,344,251 1,591,633 1,645, % 62,181 12, ,922 $4.16 Detroit 15, ,876,465 44,268,078 44,403, % 906, , ,323 $4.25 Duluth ,556, , , % 16, $5.50 East Bay/Oaklan 6, ,434,400 12,811,357 13,450, % 1,191, ,725 2,355,436 $6.68 El Paso 1,721 55,722,081 6,979,131 6,992, % (833,129) 0 20,000 $3.58 Erie ,746,940 1,749,527 1,749, % 11, $2.76 Evansville ,841,830 4,328,553 4,510, % (100,279) 0 0 $2.69 Fayetteville ,218,061 1,373,365 1,373, % (163,875) 0 0 $3.56 Fayetteville/Sprin ,830,579 2,195,926 2,235, % (94,135) 20,000 0 $3.53 Fort Smith ,403,689 2,252,255 2,306, % 27, $2.47 Fort Wayne 1,110 49,174,573 3,033,310 3,038, % (236,559) 102, ,000 $3.46 Fresno 3,279 87,621,261 6,178,384 6,341, % 564,305 21,285 96,000 $4.06 Source: CoStar Property 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 21

27 NATIONAL FIRST QUARTER 2014 National Industrial Market FIGURES AT A GLANCE Warehouse Market Statistics First Quarter 2014 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Green Bay 1,499 54,721,823 2,070,498 2,070, % 52,063 21,000 19,200 $3.80 Greensboro/Win 5, ,337,622 21,080,141 21,279, % (164,850) 2,400 2,186,560 $2.83 Greenville/Sparta 4, ,380,749 14,018,860 14,664, % (416,634) 122, ,719 $3.05 Hampton Roads 2,822 95,556,358 7,271,025 7,556, % 349,910 11,429 75,121 $4.60 Hartford 5, ,315,886 18,130,694 18,406, % (60,417) 0 1,500,000 $3.95 Hawaii 2,459 49,308,525 1,271,074 1,315, % (18,976) 0 204,427 $11.96 Houston 15, ,804,942 23,655,034 24,050, % 1,772,484 2,779,200 4,670,235 $5.49 Huntington/Ash ,000, , , % 20, $3.83 Huntsville ,987,382 1,981,334 1,990, % (78,914) 0 0 $4.67 Indianapolis 5, ,067,687 17,735,236 18,187, % 67, ,187,530 $3.57 Inland Empire (C 11, ,267,096 24,852,090 25,363, % 1,641,697 2,211,491 13,710,685 $5.05 Jackson ,315,130 1,871,943 1,871, % (13,070) 0 0 $3.70 Jacksonville (Flor 3, ,726,466 10,152,646 10,244, % 414, ,074 $3.73 Kansas City 6, ,113,693 12,731,265 12,930, % 928, ,408 1,916,174 $3.98 Killeen/Temple/F 173 4,826, , , % (67,054) 0 0 $4.46 Kingsport/Bristol ,707,311 2,376,406 2,376, % (172,061) 0 0 $3.02 Knoxville 1,783 60,157,395 5,569,362 5,613, % (145,899) 320,000 0 $3.46 Lafayette 371 6,950, , , % 21,362 40,364 0 $4.24 Las Vegas 3,146 94,443,363 10,103,225 10,198, % 95, ,845 51,097 $5.59 Lexington/Fayet 1,226 43,951,143 1,641,159 1,641, % 81, ,000 $4.46 Lincoln ,113, , , % (212,672) 19,100 0 $3.46 Little Rock/N Litt 1,936 58,816,779 4,962,954 4,962, % (3,830) 0 0 $3.08 Long Island (New 13, ,486,590 15,033,916 15,231, % (51,381) 0 545,547 $11.18 Los Angeles 34, ,317,214 37,793,988 39,618, % 2,038, ,847 1,802,544 $7.16 Louisville 4, ,566,566 11,043,557 11,375, % 873,449 78,512 1,037,000 $3.38 Lubbock 2,028 32,361, , , % 57, $3.66 Madison 1,961 81,206,266 5,026,467 5,804, % (98,470) 0 86,280 $3.87 Marin/Sonoma 1,758 30,213,366 1,198,589 1,263, % 210, ,000 $7.97 McAllen/Edinbur ,696,119 2,030,565 2,089, % 23, ,000 $4.22 Memphis 3, ,942,725 27,204,130 27,275, % 296, ,980 2,170,252 $2.69 Miami-Dade Cou 8, ,457,339 12,337,460 12,483, % 768, ,025 1,640,902 $8.07 Milwaukee 6, ,020,106 19,242,768 19,242, % 847, , ,689 $3.97 Minneapolis 7, ,538,198 15,072,489 15,753, % 1,095, , ,585 $5.53 Mobile 1,062 25,532,675 2,936,115 2,936, % 267, $4.11 Montgomery ,579,719 3,183,226 3,188, % 60, $2.99 Myrtle Beach/Co 214 3,473, , , % (15,400) 0 0 $4.19 Nashville 3, ,156,935 15,746,081 16,053, % (366,776) 240, ,497 $3.49 New Orleans/M 3,458 61,216,921 4,365,144 4,380, % 72, ,584 $5.06 Northern New Je 15, ,486,738 57,471,191 59,859, % 285,303 1,091,244 6,303,669 $5.51 Ocala ,748,785 1,046,973 1,046, % 30, $3.68 Oklahoma City 5,326 98,423,019 5,291,664 5,370, % 213, , ,074 $4.22 Olympia ,041, , , % 21, $5.20 Omaha/Council 2,703 73,799,626 2,337,679 2,569, % 192,275 79,851 10,000 $4.32 Orange County 9, ,408,957 8,857,082 9,328, % 485, $7.75 Orlando 5, ,931,223 13,232,697 13,314, % 5,690 74,814 1,335,091 $4.95 Palm Beach Cou 2,598 46,927,748 2,784,789 2,908, % 138, , ,000 $8.07 Pensacola ,674,408 1,005,770 1,005, % 28, $4.37 Source: CoStar Property 22 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

28 National Industrial Market FIGURES AT A GLANCE FIRST QUARTER 2014 NATIONAL Warehouse Market Statistics First Quarter 2014 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Peoria ,728,914 1,092,052 1,092, % (21,572) 0 0 $3.63 Philadelphia 16, ,570,797 78,136,640 79,317, % (663,075) 94,000 9,759,800 $4.12 Phoenix 8, ,930,901 31,114,452 32,872, % 819,475 2,790,757 2,397,654 $5.54 Pittsburgh 4, ,939,992 10,938,566 10,961, % 598,435 40, ,403 $4.56 Port St Lucie/For 1,048 17,779,111 1,350,403 1,395, % 125, $6.08 Portland 5, ,560,808 9,256,378 9,419, % 215, ,054,385 $5.61 Portland/South P ,937,482 1,319,748 1,339, % 71, ,125 $4.47 Providence 2,528 77,365,880 5,968,436 5,978, % (468,662) 30, ,235 $4.27 Raleigh/Durham 2,344 89,372,471 7,470,005 8,171, % (99,271) 30, ,246 $3.87 Reno/Sparks 1,522 76,533,779 7,133,827 7,417, % 538, ,800 1,331,010 $3.84 Richmond VA 2, ,326,511 8,511,218 8,552, % 265, $3.55 Roanoke ,554,170 2,654,282 2,767, % 6, $3.38 Rochester 1,906 82,601,463 6,326,322 7,143, % (271,077) 0 12,528 $3.99 Sacramento 6, ,364,926 20,775,780 21,028, % 660, ,164 $4.38 Salinas ,113,547 1,080,010 1,210, % 287, $5.03 Salt Lake City 6, ,312,351 7,066,726 7,281, % 286, , ,582 $4.39 San Antonio 3,638 99,979,712 4,946,121 5,068, % 1,369,074 1,119, ,146 $5.14 San Diego 6, ,644,734 9,178,561 9,510, % 875, , ,000 $8.85 San Francisco 4,074 71,530,354 3,283,601 3,388, % 107, $10.86 San Luis Obispo/ 433 6,290, , , % (12,309) 0 0 $8.44 Santa Barbara/St 1,034 11,140, , , % 149, ,000 0 $8.86 Santa Cruz/Wats 512 8,853, , , % (67,969) 0 0 $9.05 Savannah 1,082 47,177,564 4,316,758 4,530, % 1,043, $3.69 Seattle/Puget So 7, ,513,532 13,381,046 13,817, % 910, ,446 1,885,455 $6.13 Shreveport/Boss ,750,487 8,399,063 8,430, % (45,045) 0 0 $3.00 South Bay/San Jo 3,692 92,552,896 4,427,827 4,725, % 289, $8.00 South Bend/Mish ,017,657 1,888,176 1,888, % 573, $2.94 Southwest Florid 3,220 40,866,281 2,673,351 2,706, % (15,530) 0 0 $5.54 Spokane 1,737 39,017,680 1,743,564 1,761, % (47,413) 0 200,000 $4.25 Springfield ,148,479 2,089,848 2,126, % (4,844) 2,580 0 $4.25 St. Louis 5, ,130,678 19,164,992 19,270, % 782, , ,000 $3.78 Stockton/Modes 3, ,205,530 13,604,997 13,724, % 292, ,000 $3.80 Syracuse 1,113 55,174,603 6,647,532 6,647, % 141, ,777 0 $3.25 Tallahassee ,057,067 1,148,182 1,172, % (14,825) 0 0 $4.54 Tampa/St Peters 10, ,588,169 20,948,827 21,178, % 1,025, ,531 1,182,800 $4.72 Toledo 2, ,468,178 10,291,440 10,311, % 165,786 29,918 1,814 $2.91 Tucson 2,018 30,247,717 3,091,321 3,157, % 25,951 7,447 0 $5.77 Tulsa 3,442 81,539,887 3,920,642 4,025, % (47,357) 5, ,723 $4.01 Utica/Rome ,544,604 3,009,119 3,105, % 2, ,170 $2.80 Visalia/Porterville ,019,807 1,333,223 1,647, % 284, ,955 $3.86 Washington 4, ,872,680 12,208,832 12,888, % 460, ,672 1,447,940 $8.23 West Michigan 8, ,124,609 17,419,629 17,587, % 509, ,000 $3.06 Westchester/So 6, ,051,552 18,016,849 18,118, % 130,539 38,000 15,750 $6.95 Wichita 1,748 44,878,123 1,767,200 1,828, % 162, $4.01 Wilmington ,000,428 3,013,625 3,013, % 47, $2.92 Yakima ,270, , , % 2, $4.33 Youngstown/Wa 1,455 56,585,745 7,808,948 7,808, % ,000 $2.65 Totals 528,507 18,694,884,455 1,368,163,589 1,399,917, % 42,444,114 26,911, ,104,772 $4.73 Source: CoStar Property 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 23

29 NATIONAL FIRST QUARTER 2014 National Industrial Market FIGURES AT A GLANCE Total Industrial Market Statistics First Quarter 2014 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Albany/Schenect 2,626 98,824,405 7,185,371 7,218, % (21,994) 80, ,493 $4.59 Albuquerque 2,552 50,597,595 3,939,084 3,959, % (26,348) 101,500 15,000 $6.60 Anchorage ,997, , , % 8,123 2,840 0 $12.67 Asheville ,114,070 1,756,894 1,765, % (4,188) 14,300 0 $3.86 Atlanta 16, ,750,850 66,711,868 68,887, % 4,729, ,000 4,276,846 $3.94 Augusta/Richmo 1,063 33,453,235 3,006,764 3,006, % 206, ,800 $2.86 Austin 3,730 92,174,553 8,208,736 8,411, % (1,135,326) 301, ,947 $7.67 Bakersfield 1,468 27,634,357 1,240,450 1,240, % (31,934) 0 6,967 $6.32 Baltimore 4, ,981,488 19,914,159 20,304, % 956, ,715,118 $5.90 Baton Rouge 1,383 23,878,440 2,614,142 2,700, % (70,764) 30,275 50,000 $5.11 Beaumont/Port A ,660, , , % (33,677) 0 0 $4.80 Birmingham 4, ,846,316 13,036,314 13,191, % (63,383) 0 682,748 $3.41 Boise City/Namp 1,910 41,825,186 3,275,220 3,299, % (104,991) 0 25,000 $5.19 Boston 12, ,910,814 42,756,464 44,048, % 568, , ,045 $6.20 Bremerton/Silver 264 2,712, , , % 30, $6.33 Broward County 6, ,136,648 9,938,699 10,093, % 338, , ,600 $7.96 Brownsville/Harl ,136,889 1,596,252 1,596, % 3, $3.52 Buffalo/Niagara 1,487 68,008,295 6,592,742 6,899, % 96, $3.93 Charleston WV ,431, , , % 15, $6.00 Charleston/N Ch 2,689 64,158,992 4,675,315 4,975, % 437,616 6, ,000 $4.78 Charlotte 7, ,445,580 30,247,543 30,586, % 994, ,423 1,970,123 $3.82 Chattanooga ,774,631 5,672,339 5,722, % (13,522) 0 201,050 $3.09 Chicago 22,353 1,149,931,410 96,993,351 98,414, % 2,196,547 1,308,166 4,324,488 $5.17 Cincinnati 6, ,837,467 18,973,249 20,009, % 1,475, ,280,564 $3.47 Cleveland 12, ,169,182 37,008,261 37,675, % 242, , ,576 $3.67 Colorado Springs 1,860 33,168,653 2,581,105 2,752, % 278, ,220 0 $6.16 Columbia 1,989 55,676,555 4,767,218 4,860, % 912, ,500 $3.98 Columbus 5, ,195,919 17,482,129 17,774, % 1,638, ,589 1,275,969 $3.22 Columbus GA ,938,142 1,984,302 1,984, % 99, $2.89 Corpus Christi 1,419 20,135, , , % 76,757 30,000 18,300 $6.34 Dallas/Ft Worth 20, ,463,556 56,693,238 57,693, % 4,677,626 4,997,415 14,440,861 $5.20 Davenport/Molin ,397, , , % 19, $3.88 Dayton 3, ,406,790 16,458,476 16,518, % (377,349) 0 0 $3.32 Deltona/Dayton 1,405 19,409,227 1,496,766 1,550, % 123,605 30,765 6,000 $5.16 Denver 10, ,675,458 14,241,471 15,367, % 1,359, ,599 2,826,450 $6.79 Des Moines 1,536 56,729,281 2,180,533 2,234, % 97,658 12, ,922 $4.41 Detroit 16, ,278,785 49,702,597 49,962, % 904, , ,323 $4.63 Duluth ,886, , , % 16, $5.72 East Bay/Oaklan 8, ,140,752 20,672,997 21,543, % 1,367, ,725 2,355,436 $8.25 El Paso 2,068 61,880,361 7,452,470 7,465, % (845,662) 0 20,000 $4.08 Erie ,167,425 1,752,800 1,752, % 11, $2.76 Evansville ,409,758 4,492,795 4,686, % (97,479) 0 0 $2.80 Fayetteville ,232,459 1,514,670 1,514, % (171,355) 0 0 $3.79 Fayetteville/Sprin ,028,398 2,265,905 2,305, % (96,216) 20,000 0 $3.55 Fort Smith ,646,351 2,265,935 2,319, % 27, $2.49 Fort Wayne 1,261 52,987,573 3,441,164 3,445, % (228,219) 102, ,000 $3.56 Fresno 3,381 89,378,369 6,395,691 6,558, % 580,363 21,285 96,000 $4.15 Source: CoStar Property 24 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

30 National Industrial Market FIGURES AT A GLANCE FIRST QUARTER 2014 NATIONAL Total Industrial Market Statistics First Quarter 2014 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Green Bay 1,795 63,093,570 2,318,748 2,318, % 56,764 21,000 19,200 $4.05 Greensboro/Win 6, ,676,871 22,477,053 22,678, % (209,889) 2,400 2,186,560 $2.96 Greenville/Sparta 4, ,563,760 15,742,464 16,389, % (373,078) 122, ,719 $3.28 Hampton Roads 3, ,906,167 8,874,729 9,185, % 447,684 60,214 75,121 $5.18 Hartford 6, ,577,100 20,439,409 20,765, % (62,208) 0 1,500,000 $4.27 Hawaii 2,534 50,993,192 1,368,061 1,412, % (25,581) 0 215,927 $12.12 Houston 17, ,379,470 27,762,867 28,317, % 1,693,987 2,800,908 4,715,285 $5.85 Huntington/Ash ,325, , , % 12, $3.86 Huntsville ,684,988 2,612,320 2,641, % 3, $5.86 Indianapolis 6, ,297,267 20,889,449 21,373, % 104, ,187,530 $3.88 Inland Empire (C 12, ,104,941 26,153,201 26,674, % 1,831,253 2,211,491 13,710,685 $5.27 Jackson ,383,326 2,063,105 2,063, % (623) 0 0 $3.89 Jacksonville (Flor 3, ,198,422 10,821,502 10,923, % 470, ,074 $3.97 Kansas City 6, ,520,812 13,825,347 14,038, % 968, ,408 1,916,174 $4.19 Killeen/Temple/F 186 4,959, , , % (67,054) 0 0 $4.53 Kingsport/Bristol ,721,860 2,415,016 2,415, % (133,693) 0 0 $3.13 Knoxville 2,759 72,416,028 6,157,905 6,202, % (138,282) 320,000 0 $3.72 Lafayette 388 7,464, , , % 41,362 40,364 0 $4.24 Las Vegas 4, ,936,457 12,610,769 12,712, % 189, ,845 51,097 $6.13 Lexington/Fayet 1,395 47,256,680 2,005,309 2,012, % 37, ,000 $4.81 Lincoln 1,033 26,335, , , % (215,984) 19,100 0 $3.58 Little Rock/N Litt 2,504 67,622,510 5,726,259 5,726, % (17,835) 0 0 $3.28 Long Island (New 13, ,896,116 17,463,569 17,672, % (25,629) 0 545,547 $11.96 Los Angeles 36, ,393,736 42,385,673 44,351, % 2,307, ,847 1,802,544 $7.76 Louisville 4, ,550,072 11,734,220 12,139, % 901,331 78,512 1,037,000 $3.50 Lubbock 2,048 33,399, , , % 61, $3.84 Madison 2,211 88,849,962 5,571,089 6,351, % (103,363) 0 150,431 $4.12 Marin/Sonoma 2,212 39,923,097 2,088,779 2,300, % 213, ,000 $9.94 McAllen/Edinbur ,060,005 2,076,749 2,135, % 22, ,000 $4.41 Memphis 3, ,338,112 29,074,375 29,151, % 302, ,980 2,265,252 $2.90 Miami-Dade Cou 8, ,342,235 13,635,978 13,787, % 916, ,025 1,640,902 $8.32 Milwaukee 7, ,308,814 21,488,076 21,653, % 889, , ,689 $4.17 Minneapolis 9, ,754,360 22,317,315 23,118, % 951, ,000 1,115,958 $6.04 Mobile 1,301 27,880,848 3,139,952 3,139, % 267, $4.19 Montgomery ,948,974 3,333,406 3,340, % 68, $3.15 Myrtle Beach/Co 418 5,664, , , % (35,550) 0 0 $4.55 Nashville 4, ,747,434 17,119,595 17,430, % (240,850) 240, ,047 $3.85 New Orleans/M 3,691 64,268,712 4,628,886 4,643, % 59, ,584 $5.21 Northern New Je 17, ,357,082 64,621,559 67,440, % 321,909 1,091,244 6,303,669 $5.92 Ocala ,284,104 1,104,002 1,104, % 30, $3.70 Oklahoma City 5, ,654,999 6,588,170 6,667, % 288, , ,901 $4.55 Olympia ,547, , , % 27, $5.26 Omaha/Council 3,023 80,588,277 3,116,122 3,354, % 148,429 79,851 24,000 $4.61 Orange County 12, ,997,398 12,910,703 13,514, % 538, ,530 $8.82 Orlando 7, ,312,057 16,679,638 16,884, % 26,053 74,814 1,351,091 $5.41 Palm Beach Cou 3,199 58,860,861 3,765,571 3,914, % 173, , ,000 $8.65 Pensacola 1,083 16,438,393 1,140,155 1,140, % 31, $4.46 Source: CoStar Property 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 25

31 NATIONAL FIRST QUARTER 2014 National Industrial Market FIGURES AT A GLANCE Total Industrial Market Statistics First Quarter 2014 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Peoria ,902,626 1,149,553 1,149, % (21,572) 0 0 $3.74 Philadelphia 20,015 1,017,636,262 88,000,819 89,360, % (173,516) 214,056 9,801,800 $4.52 Phoenix 9, ,787,000 37,751,062 39,777, % 597,026 2,790,757 2,551,721 $6.68 Pittsburgh 4, ,820,760 12,676,235 12,740, % 682,298 40, ,403 $5.29 Port St Lucie/For 1,212 20,329,521 1,733,793 1,786, % 146, $6.65 Portland 6, ,583,396 10,917,391 11,164, % 212, ,863,746 $6.26 Portland/South P 1,021 28,432,103 1,620,898 1,696, % 74, ,125 $4.55 Providence 2,699 82,013,334 6,242,662 6,252, % (449,860) 30, ,235 $4.49 Raleigh/Durham 3, ,376,102 10,095,528 10,847, % , ,246 $5.21 Reno/Sparks 1,889 85,094,529 8,089,717 8,391, % 639, ,800 1,331,010 $4.08 Richmond VA 3, ,741,170 10,151,545 10,199, % 318,906 10,400 0 $4.09 Roanoke ,524,709 2,831,922 2,944, % 22, $3.57 Rochester 2,092 95,241,623 8,555,557 9,375, % (262,048) 0 44,528 $4.28 Sacramento 7, ,158,187 24,583,783 24,869, % 651, ,406 $5.00 Salinas ,014,231 1,133,449 1,355, % 279, $5.22 Salt Lake City 7, ,035,299 8,243,750 8,464, % 263, , ,582 $4.74 San Antonio 4, ,324,749 6,130,285 6,258, % 1,444,267 1,194, ,506 $5.75 San Diego 8, ,557,932 14,078,008 14,754, % 1,012, , ,000 $10.35 San Francisco 4,857 94,885,548 5,299,685 5,540, % 108, $14.46 San Luis Obispo/ 467 6,997, , , % (8,809) 0 0 $8.85 Santa Barbara/St 1,198 15,088, , , % 121, ,000 0 $9.65 Santa Cruz/Wats ,167, , , % (51,616) 0 0 $9.94 Savannah 1,219 48,602,025 4,404,985 4,618, % 1,051, $3.84 Seattle/Puget So 8, ,221,701 16,479,812 17,034, % 993, ,982 1,885,455 $7.21 Shreveport/Boss ,257,694 8,623,842 8,655, % (45,245) 0 0 $3.08 South Bay/San Jo 6, ,633,223 16,352,639 17,712, % 541, ,532 $14.49 South Bend/Mish ,567,467 2,017,118 2,019, % 566, $3.05 Southwest Florid 3,600 47,006,793 3,365,053 3,425, % 4,804 17,000 0 $5.82 Spokane 2,000 43,054,785 2,110,903 2,128, % (53,454) 0 200,000 $4.53 Springfield ,056,517 2,133,957 2,170, % 126 2,580 0 $4.27 St. Louis 6, ,551,961 20,606,141 20,778, % 725, , ,000 $3.99 Stockton/Modes 3, ,269,912 14,387,746 14,507, % 284, ,000 $3.84 Syracuse 1,712 63,169,170 6,948,798 6,948, % 158, ,777 0 $3.47 Tallahassee 1,063 15,792,484 1,319,077 1,343, % (45,575) 0 0 $4.87 Tampa/St Peters 12, ,168,846 25,340,403 25,636, % 1,075, ,149 1,182,800 $5.14 Toledo 3, ,482,228 10,827,442 10,856, % 188,537 29,918 1,814 $3.00 Tucson 2,487 39,922,687 4,449,023 4,514, % (45,090) 56,091 0 $6.39 Tulsa 3,746 87,987,183 4,282,947 4,388, % 52,030 85, ,723 $4.13 Utica/Rome ,989,356 3,105,273 3,201, % 4, ,170 $2.93 Visalia/Porterville 1,036 30,384,067 1,344,463 1,658, % 294, ,955 $3.86 Washington 6, ,641,399 20,559,761 21,414, % 814, ,740 1,577,790 $9.67 West Michigan 8, ,597,032 18,709,216 18,877, % 372, ,200 $3.25 Westchester/So 6, ,690,479 21,082,496 21,211, % 250,790 38,000 24,550 $7.29 Wichita 1,805 46,343,304 2,027,895 2,092, % 143, $4.18 Wilmington 1,018 19,447,738 3,446,532 3,446, % 91, ,625 $3.40 Yakima ,723, , , % 2, $4.40 Youngstown/Wa 1,499 57,445,445 8,024,788 8,024, % (1,380) 0 12,000 $2.71 Totals 618,361 20,953,131,027 1,605,414,945 1,643,961, % 46,960,231 27,775, ,737,565 $5.39 Source: CoStar Property 26 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

32 National Industrial Market FIGURES AT A GLANCE FIRST QUARTER 2014 NATIONAL Flex Market Statistics* First Quarter 2014 Existing Inventory Vacancy Net Deliveries UC Inventory Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates q 61,000 1,660,677, ,227, ,851, % 3,961, , ,711,717 $ q 61,004 1,661,615, ,959, ,752, % 5,236, , ,921,386 $ q 61,000 1,661,571, ,988, ,944, % 4,418, ,017, ,896,204 $ q 60,986 1,660,780, ,274, ,572, % 3,900, ,006, ,462,739 $ q 60,974 1,660,028, ,208, ,720, % 4,298, , ,778,598 $ ,957 1,659,192, ,597, ,182, % 11,080, ,684, ,336,287 $ ,920 1,657,874, ,663, ,945, % 10,809, ,544, ,540,421 $ ,887 1,656,710, ,402, ,589, % (266,204) 123 3,612, ,397,526 $ ,779 1,653,621, ,746, ,234, % (16,922,305) ,707, ,028,026 $ ,498 1,643,476, ,006, ,167, % 4,835, ,813, ,636,802 $ ,806 1,624,020, ,309, ,547, % 21,715, ,826, ,192,834 $ ,034 1,605,255, ,432, ,497, % 28,094, ,434, ,192,658 $ ,147 1,584,817, ,884, ,153, % 39,899, ,139, ,141,496 $ ,329 1,563,594, ,113, ,829, % 24,263, ,917, ,739,730 $ ,598 1,545,698, ,022, ,197, % (2,989,706) ,624, ,819,219 $ ,988 1,531,354, ,606, ,827, % (4,204,514) ,326, ,036,529 $10.51 Source: CoStar Property * Select markets included in this historical chart - see Methodology page. Quoted Warehouse Market Statistics* First Quarter 2014 Existing Inventory Vacancy Net Deliveries Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates q 354,837 13,102,697, ,790, ,593, % 32,644, ,391, ,524,662 $ q 354,721 13,083,879, ,679, ,420, % 55,401, ,639, ,976,168 $ q 354,650 13,069,987,847 1,004,429,198 1,030,929, % 44,823, ,091, ,161,382 $ q 354,561 13,050,054,870 1,026,992,741 1,055,820, % 34,859, ,273, ,430,539 $ q 354,473 13,035,068,739 1,046,934,215 1,075,694, % 35,986, ,018, ,237,553 $ ,421 13,029,275,225 1,073,804,069 1,105,886, % 121,746, ,488, ,928,404 $ ,196 12,997,343,053 1,160,779,944 1,195,701, % 108,105, ,352, ,322,555 $ ,990 12,981,517,429 1,243,188,093 1,287,981, % 19,177, ,777, ,871,788 $ ,701 12,969,413,764 1,243,450,727 1,295,055, % (143,617,865) 1,235 87,911, ,662,248 $ ,661 12,893,226,139 1,030,629,544 1,075,249, % 68,245,865 2, ,921, ,659,338 $ ,182 12,710,202, ,735, ,471, % 189,210,287 3, ,299,370 2, ,636,142 $ ,093 12,527,033, ,991, ,512, % 215,074,515 3, ,254,671 2, ,701,495 $ ,744 12,327,806, ,347, ,360, % 195,544,908 3, ,137,289 2, ,737,440 $ ,419 12,164,792, ,264,481 1,014,891, % 154,073,883 3, ,080,366 2, ,963,998 $ ,451 12,032,949, ,020,552 1,037,122, % 68,576,150 2, ,650,188 2, ,659,789 $ ,852 11,926,032, ,767, ,781, % 24,865,383 3, ,822,338 2, ,504,388 $4.80 Source: CoStar Property * Select markets included in this historical chart - see Methodology page. UC Inventory Quoted Total Industrial Market Statistics* First Quarter 2014 Existing Inventory Vacancy Net Deliveries UC Inventory Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates q 415,837 14,763,374,595 1,136,018,637 1,164,445, % 36,606, ,920, ,236,379 $ q 415,725 14,745,495,462 1,153,638,858 1,183,172, % 60,638, ,366, ,897,554 $ q 415,650 14,731,558,886 1,197,417,712 1,229,874, % 49,242, ,109, ,057,586 $ q 415,547 14,710,835,547 1,223,267,703 1,258,393, % 38,759, ,279, ,893,278 $ q 415,447 14,695,097,284 1,246,143,154 1,281,414, % 40,284, ,926, ,016,151 $ ,378 14,688,467,849 1,276,401,104 1,315,069, % 132,826, ,172, ,264,691 $ ,116 14,655,217,719 1,372,443,796 1,414,646, % 118,914, ,897, ,862,976 $ ,877 14,638,227,686 1,462,590,317 1,516,571, % 18,911, ,390, ,269,314 $ ,480 14,623,034,948 1,456,196,912 1,520,289, % (160,540,170) 1,541 99,619, ,690,274 $ ,159 14,536,702,488 1,217,635,677 1,273,417, % 73,081,381 3, ,735,821 1,233 90,296,140 $ ,988 14,334,223,349 1,101,045,737 1,144,019, % 210,925,662 4, ,125,573 2, ,828,976 $ ,127 14,132,288,976 1,105,423,821 1,153,010, % 243,168,583 4, ,688,927 3, ,894,153 $ ,891 13,912,623,530 1,125,231,559 1,176,513, % 235,443,981 4, ,276,941 3, ,878,936 $ ,748 13,728,387,036 1,162,378,370 1,227,721, % 178,337,556 4, ,998,304 3, ,703,728 $ ,049 13,578,648,203 1,177,043,078 1,256,319, % 65,586,444 3, ,274,784 3, ,479,008 $ ,840 13,457,387,375 1,099,374,117 1,200,609, % 20,660,869 4, ,149,334 2, ,540,917 $5.24 Source: CoStar Property * Select markets included in this historical chart - see Methodology page. Quoted 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 27

33 NATIONAL FIRST QUARTER 2014 National Industrial Market LEASING ACTIVITY Historical Rental Rates* $14.00 Flex Warehouse Total Market $12.00 $10.00 Dollars/SF/Year $8.00 $6.00 $4.00 $2.00 $ q q q q q q q q q q q q q q Source: CoStar Property * Select markets included in this historical chart - see Methodology page. Vacancy by Available Space Type Percent of All Vacant Space in Direct vs. Sublet 2% Direct Sublet Vacancy by Building Type Percent of All Vacant Space by Building Type Flex Warehouse 15% 85% 98% Source: CoStar Property Source: CoStar Property Future Space Available Space Scheduled to be Available for Occupancy in the Future* q q q q q q * includes Under Construction Spaces Source: CoStar Property 28 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

34 National Industrial Market LEASING ACTIVITY FIRST QUARTER 2014 NATIONAL Select Top Industrial Leases Based on Leased Square Footage For Deals Signed in 2014 Building Market SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company 1 I-94 Chicago 1,000,000 1st Amazon N/A N/A 2 Pinnacle XV Chicago 898,560 1st Pactiv Corporation N/A Pizzuti Companies 3 Carter Distribution Center - Building One Dallas/Ft Worth 725,709 1st Whirlpool Corporation N/A Lee & Associates 4 Greens Crossing I Houston 497,867 1st HD Supply Holdings, Inc. N/A NAI Houston Upper Express Dr Chicago 476,030 1st DHL Global Forwarding Arthur J. Rogers & Co. Lee & Associates of IL, LLC Hitzert Ct St. Louis 433,520 1st Wainwright Industries N/A JLL 7 Port Reading Business Park - Building 3 Northern New Jersey 405,679 1st NFI Industries N/A Cushman & Wakefield of New Jersey, 8 Canyon Commerce Center - Bldg B* Inland Empire (California) 355,182 1st Ozburn Hessey Logistics N/A Colliers International 9 South Rialto Logistics Center Inland Empire (California) 328,691 1st Masterbrands CBRE CBRE Old Port Royal Rd Nashville 328,050 1st Integrity Nutraceuticals Cassidy Turley Crown Enterprises Inc 11 Port Union at Union Centre - Building F Cincinnati 292,500 1st Genco, Inc. N/A Cassidy Turley Shawnee Industrial Way Atlanta 256,700 1st Millennium Mat Company The Taylor Company NAI Brannen Goddard Marina Blvd East Bay/Oakland 223,984 1st Independent Electric Direct Deal Cornish & Carey Comm NKF S Greenbush Rd Northern New Jersey 110,000 1st Nice-Pak Products, Inc. N/A Pyramid Brokerage Co of The Hudson E Francis St Inland Empire (California) 108,703 1st Globalinx Pet Newmark Grubb Knight Frank Colliers International Washington Blvd Sacramento 107,759 1st Wright Celebrations CBRE JLL 17 The Crossroads Collection - Bldg 5 Inland Empire (California) 102,878 1st Weber Distribution Cushman & Wakefield, Inc. Colliers International W Carob St Los Angeles 100,280 1st Great Central Transport, Inc. Lee & Associates Colliers International 19 Lanark Distribution Center - Building 1* San Antonio 97,200 1st Chalk Mountain Services of Texas LLC N/A Stream Realty Partners-Central Texa 20 Romulus Business Center - Phase I Detroit 94,470 1st Excel Logistics N/A Signature Associates 21 Oakley Commerce Center Cincinnati 90,637 1st Group Sales N/A Cincinnati Commercial REALTORS 22 Main Manufacturing Tampa/St Petersburg 90,000 1st Excellence Industries Andretta Properties Resource Realty Group Inc N Baker Rd Milwaukee 86,750 1st Milwaukee Center for Independence Siegel-Gallagher NAI MLG Commercial Airway Ave Orange County (California) 78,738 1st Fisker Automotive Voit Real Estate Services Lincoln Property Company Jimmy Deloach Pky* Savannah 75,100 1st Damco N/A Duke Realty Corporation 26 Beauty Maid Mills Charlotte 73,940 1st Holland Distribution Direct Deal Holland Realty & Mortgage Corp Miller Ave Inland Empire (California) 72,650 1st American Bolt & Screw Voit Real Estate Services Voit Real Estate Services Sunset Way Las Vegas 72,121 1st Golf Outlets USA N/A MDL Group 29 Commerce Farms IV* Nashville 71,250 1st Communications Test Design, Inc. N/A Cassidy Turley 30 Internationale Centre* Chicago 71,246 1st Trudeau Corporation Taurus Realty Partners Prologis Belleville Tpke Northern New Jersey 69,000 1st MGR Resources Cassidy Turley Cushman & Wakefield of New Jersey, 32 Cranbury Business Park - Bldg 8 Northern New Jersey 68,435 1st CIL Forwarding Cassidy Turley CBRE NW 106 St South Florida 67,997 1st TVH Parts Co CBRE Flagler Real Estate Services, LLC NW 72nd Ave South Florida 66,829 1st Bonus Tech, Inc. Vivo Real Estate Group, Inc. CBRE Edwards Dr Philadelphia 66,598 1st Modular Steel Direct Deal Berwick Industrial Development Asso Mason Rd Nashville 66,493 1st Nissan Trading N/A Cassidy Turley Scott Blvd South Bay/San Jose 66,106 1st MIPS Technologies, Inc. Cornish & Carey Commercial NKF Direct Deal Jimmy Carter Blvd Atlanta 65,605 1st Brothers Global Inc. N/A Avison Young Dixon Landing Rd* South Bay/San Jose 65,010 1st CETECOM, Inc. Colliers International Cassidy Turley 40 Prologis Park North - Bldg 8 Las Vegas 53,583 1st Aura XM Colliers International CBRE Source: CoStar Property * Renewal 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 29

35 NATIONAL FIRST QUARTER 2014 National Industrial Market SALES ACTIVITY The Optimist Sales Index Average of Two Highest Price/SF's and Two Lowest Cap Rates From Each Region 8.6% Cap Rate Price/SF $ % $180 Cap Rate Percentage 8.2% 8.0% 7.8% 7.6% 7.4% 7.2% 7.0% 6.8% $160 $140 $120 $100 $80 $60 $40 Dollars/SF 6.6% $20 6.4% q q q q q q q q q q q q $0 Source: CoStar COMPS Sales Volume & Price Sales Analysis by Building Size Based on Industrial Building Sales of 15,000 SF and Larger Based on Industrial Bldg Sales From Jan Dec Sales Volume Price/SF Bldg Size # RBA $ Volume Price/SF Cap Rate $9,000 $80 $8,000 $70 < 25,000 SF 5,223 63,110,252 $ 5,825,157,431 $ % Millions of Sales Volume Dollars $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $60 $50 $40 $30 $20 Price/SF 25K-99K SF 2, ,492,301 $ 7,647,182,709 $ % 100K-249K SF ,999,651 $ 5,254,558,606 $ % $1,000 $10 $ q q q q q q q q $0 >250K SF ,695,608 $ 8,115,458,224 $ % Source: CoStar COMPS Source: CoStar COMPS Historical Price/SF Average Based on Industrial Building Sales of 15,000 SF and Larger Historical Cap Rate Average Based on Industrial Building Sales of 15,000 SF and Larger $ % Dollars per SF $70 $60 $50 $40 $30 $20 $10 Cap Rate Percentage 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% $ q q q q q q q q 0.0% q q q q q q q q Source: CoStar COMPS Source: CoStar COMPS 30 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

36 National Industrial Market SALES ACTIVITY FIRST QUARTER 2014 NATIONAL 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 31