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

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1 Committed to Chicago. Connected to the World. NAI Hiffman Metropolitan Chicago Industrial Market Review First Quarter 213 hiffman.com

2 To our valued customers, partners and future clients... When I was a kid, the concept of the future was a world with flying cars, video wristwatches and metallic jumpsuits. While I m not too disappointed that the metallic jumpsuits never materialized and I m still holding out hope for the flying car, what I never could have imagined was the future we re living in today. I recently found myself in a cellular desert and experienced the momentary disconnected panic I m sure you re familiar with How can I check my ? What if someone texts me? until the absurdity of my situation set in. I ve acclimated so quickly to the idea that access and information are ubiquitous that a moment of silence had me feeling like an unmoored boat drifting away from the shore. We literally have the entire history of human knowledge at our fingertips. Fifteen years ago, was common but not omnipresent. Only ten years ago, texting was rare and most people have never heard of a data plan. Now as I drive to work, about 4 percent of my commuting companions are doing that surreptitious, not-fooling-anybody downward-texting glance. And two, five or ten years from now, these paragraphs will sound antiquated. I m getting nostalgic, but that s actually the opposite of my point. The dayto-day commercial real estate market is drastically different now than it ever has been before. Access to good information and the ability to interpret and act quickly are vital to success. Rates, trends, history, context, analysis and relationships are all indispensable. NAI Hiffman is committed to providing the best, most comprehensive market information. We are local market experts. Stay connected, use us as a resource. We re only a click away. Regards, John R Picchiotti COO, Brokerage

3 NAI Hiffman Metropolitan Chicago Industrial Market Review & First 212 Quarter Forecast 213 Table of Contents Local Economy Industrial Market Statistics Industrial Market Summary Industrial Submarket Overviews Lake County Southeast Wisconsin I-9/Northwest Northwest Cook North Cook Fox Valley Central DuPage O Hare West Cook Chicago I-88 Corridor I-55 Corridor South Cook I-8/Joliet Corridor Northwest Indiana Industrial Investment Review Industrial Submarket Map Methodology & Definitions NAI Global/NAI Hiffman NAI Hiffman understands that our success is the direct result of creating successful outcomes for our clients. We build lasting relationships with our clients and partners, engaging our individual initiative joined with collaboration and teamwork. Our unrelenting commitment to excellence and integrity forms the foundation of our guiding principles and shapes our strategies. Committed to Chicago. Connected to the World. Build on the power of our network. NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - FIRST QUARTER 213 3

4 Local Economy POPULATION (21 CENSUS) 9,461,15 POPULATION CHANGE (2-21) +4.% NUMBER OF HOUSEHOLDS (28) 3,516,729 MEDIAN HOUSEHOLD INCOME (28 EST.) $67,234 GROSS METRO PRODUCT (21) LABOR FORCE TOTAL JOBS GAINED (2/12-2/13) CHICAGO AREA UNEMPLOYMENT RATE ILLINOIS UNEMPLOYMENT RATE U.S. UNEMPLOYMENT RATE $532 BILLION 4,136,497 6, 9.5% 9.5% 7.6% Unemployment and Work Force Participation 68% 67% 66% 65% 64% 63% Case-Shiller Home Price Indices 1989 $2. Trillion $1.5 Trillion $1. Trillion $.5 Trillion Chicago Case-Shiller Index U.S. National Case-Shiller Index $ Metro Chicago Unemployment Rate U.S. Unemployment Rate U.S. Labor Force Participation Rate Corporate Profits After Tax U.S. Non-Farm Job Openings Corporate Profits vs. Job Openings Source: Standard & Poor s % 1% 8% 6% 4% 2% Source: Bureau of Labor Statistics 6, 5, 4, 3, 2, Source: Bureau of Labor Statistics & Bureau of Economic Analysis Local Economy Review The third largest metropolitan area in the U.S. after New York and Los Angeles, Chicago is the most influential economic region between the East and West Coasts. Foreign Policy Magazine recently ranked Chicago sixth among world competition, measuring econometrics from the number of Fortune 5 companies to the flow of goods and services through airports and ports. Situated at the geographical heart of the nation, Chicago s locational advantages have fostered its development into an international center for banking, securities, high technology, air transportation, business services, wholesale and retail trade, and manufacturing. In addition, Chicago is one of the principal trading centers for commodities, financial, and derivative futures products with the Chicago Mercantile Exchange and Board of Trade. Quarter in Review The economy continues to slowly, reluctantly recover. GDP expanded at an annualized pace of 2.5% during the first quarter. At the same time, everything seems to always be changing and uncertain, like the world is in a constant state of flux. Plenty of terms and catch phrases have been thrown around in the past year. Terms that have made their way into our everyday lexicon: double-dip recession, fiscal cliff, divided country, and most recently cautiously optimistic. Enough positive economic news and promising economic indicators have made their way into the daily news cycle to convince economists, business owners and the general public that the future might not be so dire. The housing market is finally improving. In some markets housing prices are soaring compared to what they were a year ago, inventory is depleted, and new listings can barely hit the MLS before going under contract - increasingly sellers are seeing multiple offers. Housing was one of the, if not the biggest, contributor to the financial crisis and now it appears it may be a big contributor to what leads the country through the recovery. While the Chicago residential real estate market hasn t witnessed the rapid turnaround some of these hotter markets have, it

5 too is on an accelerating rebound. A pickup in home prices and the return of new home construction will have a positive effect on many of the sectors of the economy hardest hit by the downturn including construction, manufacturing, financial services and retail. Consumers will also take notice that their neighbor s house is selling for more money than it would have in 21, resulting in recovering consumer sentiment and confidence in the economy. Nationally, hiring continues to slowly recover. The unemployment rate has dipped to 7.6%, the lowest it has been in more than four years. Over the past year (March 212 through March 213), employers have added more than 2.1 million jobs to the workforce, making up nearly a quarter of the 8.8 million jobs lost due to the recession. Another sign that corporations are hiring again is that for the first time since 28 the US Citizenship and Immigration Services (USCIS) has reached their cap of 65, new foreign national employees within the first week of the filing period. If companies are spending the money to hire from abroad, they are certainly investing in hiring U.S. employees as well. Locally, total non-farm employment levels increased 1.2 percent year-overyear. The Chicago-Joliet-Naperville metropolitan area lost 7.4% of its jobs due to the economic recession, and has rebounded 4.1% since. Companies, especially those related to the tech industry, continue to move to Chicago in spades, attracted by the well-educated younger labor pool in the city and by incentives extended through Mayor Emanuel s campaign to relocate or expand nearly 85 companies within Chicago. Many of these tech companies have been leasing large spaces in Chicago s CBD, as evidenced by recent big leases by Groupon and Google leasing 572, SF in the top four floors of the Merchandise Mart for their recently acquired Motorola Mobility Inc operations. Looking Forward Despite recent good news and the promise of the improving housing market reinforcing the recovery, everything takes time to work through the economy, and major world events, significant news stories and even mistaken tweets can send the stock market, news outlets and economy into a panic. Chicago-area manufacturing, one of the first sectors to respond favorable to the economic recovery, has seen growth slow to a trickle over the past several months. Foreclosures, both residential and commercial haven t fallen off yet, and the Chicago Business Barometer, an index used to measure local economic activity, has been down for several months. Many economists are predicting the remainder of the first half of 213 will likely continue to see muted improvement, but things will begin to pick up towards the end of the year heading into 214. Many companies have held off on hiring and other major business decisions for years. At some point those decisions can no longer be deferred and companies will have to decide if they want to grow or be left behind. Consumer Price Indices (CPI) 6% 4% 2% % -2% -4% Crude Oil Prices 15% 9% 3% -3% -9% -15% 199 Core CPI 12-Month Percent Change (excludes volatile food and energy prices) CPI 12-Month Percent Change Crude Oil Price 12-Month Percent Change Source: Bureau of Labor Statistics Current Job Recovery vs. Past Recoveries U.S. Imports & Exports - Trade Balance February 213 Trade Deficit -$43. B months since job turnaround $15 $12 $9 $6 $3 $ Source: WTRG Economics 22 Trade Deficit U.S. Imports U.S. Exports % 8% 6% 4% 2% % 12-month percent change in # jobs Source: Bureau of Labor Statistics, Bureau of Labor Statistics $25 B $2 B $15 B $1 B Source: U.S. Census Bureau Local Economy Review NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - FIRST QUARTER 213 5

6 Geneva Beloit 2 Westosha Airport Industrial Submarket Overviews onsin Pleasant Prairie Illinois Lake County Southeast Wisconsin I-9/Northwest Northwest Cook North Cook Fox Valley Cher C Central DuPage Valleyy 8 O Hare West Cook Chicago I-88 Corridor Rockford kford I-55 Corridor South Cook Waukegan Regional Airport Waukegan Grayslake 1 Crystal Lake 94 Lake Forest Vernon Hills Lake Zurich Highland Park Buffalo Grove Northbrook Chicago Executive Airport 3 Arlington Heights 4 9 Elgin Schaumburg Des Plaines Evanston Niles Elk Grove Village Int'lOhare Airport Skokie Wood Dale8 DeKalb alb I-8/Joliet Corridor Northwest Indiana Addison 29 Dupage Airport 6 St Charles Carol Stream West Chicago North Aurora 11 9 Elmhurst Chicago 55 La Grange Downers Grove Burr Bedford Ridge Woodridge Park Willow Springs 88 Naperville Aurora Franklin Park Montgomery Bolingbrook 55 Chicago Midway Airport Romeoville Plainfield 9 57 Palos Heights Gary/Chicago Airpor Hammond Tinley Park 14 Minooka Monee Elwood Schererville Park Forest 39 La Salle 8 94 Matteson New Lenox Indiana Mokena Joliet Munster 8 Illinois helle 9 15 Me

7 Industrial Market Statistics NAI Hiffman Market Review First Quarter 213 Industrial Market Statistics Submarket # Bldgs. Total RBA Vacancy Available 1Q13 NET 1Q13 New 1Q13 Under (SF) Rate (%) Rate (%) Absorption (SF) Supply (SF) Constr. (SF) Chicago North 1,13 63,76, % 9.4% -22,726 Chicago South 1,699 15,7, % 11.5% 114,675 North Cook 79 45,842, % 8.1% 17,122 West Cook ,695, % 11.6% 196,215 Southwest Cook 491 4,138, % 7.5% 489,85 South Cook 1,127 85,973,64 9.8% 11.9% 267, ,67 I-57/Will Corridor 82 13,772, % 2.% -3, Lake County ,8,88 7.3% 9.5% 54,256 18,28 248,36 Northwest Cook ,431,27 6.9% 1.2% 47,837 O Hare 1,72 99,976,33 8.4% 12.2% 72,59 331,74 Central DuPage 1,93 67,25,23 6.6% 1.8% 13, ,12 I-55 Corridor ,47,73 6.9% 12.9% 75, , , McHenry County ,395, % 12.7% -19,381 I-9/Northwest ,11,391 8.% 9.2% 249, ,488 Fox Valley ,378,25 9.5% 9.7% 87, , I-88 Corridor ,12, % 8.4% 238, ,357 8, I-8/Joliet Corridor ,714, % 13.8% 62,19 1,61,184 2,38,959 DeKalb County 57 6,97, % 9.1% 5, I-39 Corridor ,613, % 18.9% 73,273 34, Southeast Wisconsin ,932,94 8.9% 9.9% 53,861 Northwest Indiana ,652,57 7.5% 11.7% 64,374 1, Flex Space Summary Total Flex Space 1,531 72,591, % 16.5% -117,262 Total Market Summary 16,391 1,198,483,467 9.% 11.5% 4,486,793 2,72,93 3,989,981 The data compiled in the Chicago Industrial and Office Market Reviews is the legal property of NAI Hiffman. Reproduction or dissemination of the information contained herein is strictly prohibited without the expressed written consent of NAI Hiffman. This review contains information, including information available to the public, which has been relied upon by NAI Hiffman on the assumption that it is accurate and complete without independent verification by NAI Hiffman. NAI Hiffman accepts no responsibility if this should prove to be inaccurate or incomplete. No warranty or representation, express or implied, is made by NAI Hiffman as to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, and changes in market conditions. NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - FIRST QUARTER 213 7

8 NAI Hiffman Metropolitan Chicago Industrial Market Review First Quarter 213 # INDUSTRIAL BUILDINGS 16,391 MARKET SIZE (SF) 1,198,483,467 VACANCY 17,828,83 SF (9.%) 1Q13 NET ABSORPTION (SF) 4,486,793 1Q13 NEW SUPPLY (SF) 2,72,93 UNDER CONSTRUCTION (SF) 3,989,981 1 MM 5 MM -5 MM -1 MM Vacancy Rate (%) Historical Deliveries 3 MM 25 MM 2 MM 15 MM 1 MM 5 MM * Through Q1 213 Net Absorption (SF) Total Sale Transactions and Price PSF $1,,+ Transactions 1 MM 8 MM 6 MM 4 MM 2 MM Total SF Sold # Total # of Sales Average Price PSF Total Deliveries (SF) Average (SF) * % 13% 11% 9% 7% Source: CoStar & NAI Hiffman $7. $6. $5. $4. $3. $2. Data: CoStar & NAI Hiffman Market Summary Chicago is the second largest industrial market in the U.S. with nearly 1.2 billion SF of inventory, second only to the Greater Los Angeles industrial market. The Chicago industrial market remains the most influential in the Midwest, due to its growing prominence as an inland port and its diverse, comparatively low-cost labor force. It has the second largest workforce in the country and is the largest manufacturing market. Chicago s strategic location and transportation infrastructure make it the most important transportation center in the country. Located in the path of three of the nation s busiest transcontinental expressways (I-8, I-9 and I-94), Chicago also claims 7 percent of the nation s rail and intermodal activity. The metropolitan area sits at the convergence of all six class-one railways and within a day s drive of one-third of the country s population. Quarter in Review Demand for industrial space increased again during the first quarter of 213. Nearly 4.5 million SF of vacant space was absorbed through new leases, lease expansions and user sales. This is one of the strongest periods of demand witnessed since the market recovery began in the second half of 21. While significant new vacancies continue to be introduced to the market through companies consolidating or moving their operations, the elevated level of transaction activity continues to outpace the effects of these new vacancies on the market. Since the bottom of the market to date, more than 37 million SF of vacant space has been absorbed, dropping the vacancy rate from 12.1% to 9% by the end of March, the lowest rate the market has seen in more than five years, and below levels witnessed in 28 as the economic outlook was beginning to sour. The market witnessed significant transaction activity during the first quarter despite no deals very large in size being completed. Many of the new leases signed during the first quarter were between 1, SF and 3, SF, not the 5, SF to 1 million SF deals witnessed in 212. Rental rates are finally beginning to respond to the market recovery in several of the more active submarkets, but have not increased Pictured Above: 122 Werch Dr in Woodridge, a 367,999 SF building leased by Waters of America/PlastiPak during the first quarter

9 Industrial Market Trends Vacancy Rate Net Absorption Asking Rents dramatically. The more notable trend, however, is that landlords are offering fewer leasing concessions such as free rent or tenant improvement allowances. Suburban Submarkets by Size I-8/Joliet Corridor I-88 Corridor 64,714,478 SF 62,12,314 SF Industrial Market Summary West Cook 59,965,718 SF Construction activity continues to increase as developers become North Cook 45,842,324 SF more confident in the economy. Additionally, demand for space coupled with the scarcity of available spaces in certain size categories has dictated new construction. The first quarter saw 2.7 Southeast Wisconsin 44,932,94 SF Southwest Cook 4,138,458 SF Northwest Indiana 35,652,57 SF Fox Valley 32,378,25 SF million SF completed and nearly 4 million SF still under construction, Northwest Cook 28,431,27 SF with only 11% of that space being built on spec, suggesting that overbuilding of speculative space is not an immediate concern. O Hare South Cook I-55 Corridor 99,976,33 SF 85,973,64 SF 81,47,73 SF I-9/Northwest McHenry County I-39 Corridor 26,11,391 SF 25,395,823 SF 24,613,891 SF Looking Forward As the economic recovery progresses in fits and starts, there are a few positive signs that will likely have a positive effect on the local industrial market in coming years. The housing market has finally turned around nationally. Locally, housing is still lagging behind other markets, but home sales are up, prices are increasing and new home construction is off the bottom. Additionally, the U.S. manufacturing sector has added roughly 5, new jobs nationally since the beginning of 21, many of those in the Midwest. The U.S. auto industry has also dramatically turned around, with many of those auto jobs based in the local region. An additional nearly 1.4 million SF of speculative development is expected to break ground by this summer, adding to the construction figures and growth of the local industrial market. The hope is that today s low vacancy rate and growth rate remains sustainable. Central DuPage Lake County 67,25,23 SF 67,8,88 SF I-57/Will Corridor DeKalb County Q1 213 Net Absorption (SF) by Submarket 8, 6, 4, 2, -2, O Hare I-55 Corridor I-8/Joliet Corridor Lake County Southwest Cook South Cook Q1 213 Total Net Absorption: 4,486,793 SF I-88 Corridor I-9 Northwest West Cook Chicago South North Cook Central DuPage Fox Valley I-39 Corridor Northwest Indiana Northwest Cook Southeast Wisconsin 13,772,467 SF 6,97,869 SF DeKalb County I-57/Will Corridor McHenry County Chicago North Significant New & Expansion Industrial Lease Transactions 1st Qtr 213 Property Address Submarket City Leased (SF) Tenant Comments 122 Werch Dr I-55 Corridor Woodridge 367,999 Waters of America/PlastiPak New lease Lunt Ave O Hare Elk Grove Village 39,284 Cloud/Ryt-Way Industries Lease renewal/expansion Supreme Dr O Hare Bensenville 26,338 Wholesale Interiors New lease Brummel Ave O Hare Elk Grove Village 245,217 Creative Werks New lease 81 W Bryn Mawr Ave O Hare Itasca 23,64 Nypro New lease 335 Crossroads Pky I-55 Corridor Bolingbrook 19,8 RTC Industries New lease 115 W 115th St I-55 Corridor Bolingbrook 183,5 Art Van Furniture New lease Sunset Ave Lake County Waukegan 158,4 Cornfields Inc. Lease expansion/renewal N Third Ave O Hare Des Plaines 155,568 Midland Paper Company Lease expansion/renewal 61 W Howard St North Cook Niles 152,817 Revolution Dance Wear New lease Rock Creek Blvd I-8/Joliet Corridor Joliet 15,5 Touchpoint Logistics Inc. New lease/relocation Italics denotes NAI Hiffman transaction NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - FIRST QUARTER 213 9

10 Lake County POPULATION 73, POPULATION CHANGE +9.2% # INDUSTRIAL BUILDINGS 931 MARKET SIZE (SF) 67,8,88 VACANCY 8,866,667 SF (7.3%) AVAILABLE SPACE 6,356,37 SF (9.5%) 1Q13 NET ABSORPTION 54,256 YTD NET ABSORPTION 54,256 1Q13 NEW SUPPLY (SF) 18,28 UNDER CONSTRUCTION (SF) 158,36 Submarket Trends Vacancy Rate Net Absorption Asking Rents chenry ake Fox Lake Lake Zurich Wisconsin Illinois Grayslake Gurnee Vernon Hills 94 Libertyville Mundelein Waukegan Regional Airport 22 Buffalo Grove Zion Waukegan North Chicago Lake Forest 41 Highland Park Plti 294 1,, 6, 2, -2, -6, -1,, Inventory By City 33% 1,2, 1,, 8, 6, 4, Vacancy Rate (%) 23% 7% 7% 9% 1% 11% Waukegan Libertyville Gurnee Buffalo Grove Lake Zurich North Chicago Construction Deliveries Net Absorption (SF) Other Lake County Suburbs 14% 12% 1% 8% 6% Lake County Overview The Lake County industrial submarket is notable for its roster of corporate headquarters and heavy concentration of owner-occupied real estate, all located within close proximity to the I-94 Tri-State Tollway. Entrepreneurial owners and corporate managers residing along the lakefront and northwest Lake County make this area attractive for investment. Corporate neighbors including Abbott, Baxter, Caremark, Takeda, Walgreens and WMS join privately held companies such as CDW, Medline and ULINE to form a vibrant base of employment. Lake County s relatively low property tax rates attract companies from Cook County, although infrastructure demands have begun to slightly even the playing field. Conditions improved in Lake County during the first quarter, with 54,256 SF of vacant space being absorbed through new leases and tenants expanding within their buildings. This activity dropped the vacancy rate by 5 basis points to 7.3% by the end of March. This matches the rate recorded five years ago, as the economic recession was just getting underway. Vacancy peaked at 11.9% in mid-21 and has been on a steady decline ever since, recording positive absorption in nine of the past ten quarters. 2, More than 2.8 million SF of vacant space has been absorbed due to increased demand since mid-211 Pictured Above: 15 Harris Rd in Libertyville, one of the two neighboring buildings purchased by The Silverman Group in January

11 Construction Two building expansions were completed during the first quarter, including a 1,28 SF expansion for Kubota Engine America and Peapod expanding its existing Lake Zurich facility by 8, SF. Three additional building expansions were started during the first quarter, including Kanaflex Corporation expanding its Vernon Hills facility by 9, SF, Fed-Ex expanding its Grayslake ground distribution facility by 87,777 SF and Laser Precision expanding its Libertyville building by 7,529 SF. Transaction Activity The largest sale of the quarter involved The Silverman Group purchasing the buildings located at 14 & 15 Harris Rd in Libertyville. The company is using the acquisition of the two facilities totaling 359,91 SF as its entry into the Chicago market and seeks to grow its industrial portfolio substantially. Available Space Profile MM.8 MM 1.6 MM 1, 19, MM 2. MM 2, 49,999 5, 99,999 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ 1, 199,999 # of Buildings 2,+ Lake County Overview The largest new lease signed during the first quarter involved hydraulic cartridge valve, custom manifold and electrohydraulic control systems manufacturer HydraForce leasing the 142,395 SF industrial facility at 7 Woodlands Pky in Vernon Hills. Looking Forward The Lake County submarket has witnessed significant demand since mid-211. During that time, more than 2.8 million SF of vacant space has been absorbed. Experiencing one of the lowest vacancy rates in the Chicago industrial market, the future continues to look bright, as local business owners find the area particularly attractive for building their business being that they are able to be nearby their employee base and home. Significant Lake County Sale Transactions 3rd 1st Qtr Property Address City Size (SF) Sale Price Price PSF Buyer Seller 14 & 15 Harris Rd Libertyville 359,91 $21,8, $61. The Silverman Group McShane Development Co 15 Franklin Blvd Libertyville 154,481 $8,8, $57. Commonwealth Edison Co Lincoln Atrium Management Co 6 Corporate Woods Pky Vernon Hills 19,66 $5,26,947* $51.* Hillwood Development Corporation Bridge Development/Wanxiang America Significant Lake County Lease Transactions 1st Qtr 213 Property Address City Leased (SF) Tenant Comments Sunset Ave Waukegan 158,4 Cornfields Inc. Lease expansion/renewal 7 Woodlands Pky Vernon Hills 142,395 HydraForce New lease 75 Tri-State Pky Gurnee 99,531 Watson Pharmaceuticals Sublease 12 Barclay Blvd Buffalo Grove 86, North Shore Care New lease 14 Busch Pky Buffalo Grove 6,48 AmeriSourceBergen New lease 9 Asbury Dr Buffalo Grove 4,32 US Lifts New lease 17 S Butterfield Rd Mundelein 3, Pet Factory New lease *Allocated price based on portfolio sale price, 9% interest sale Italics denotes NAI Hiffman transaction NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - FIRST QUARTER

12 Southeast Wisconsin POPULATION 254, POPULATION CHANGE +5.1% # INDUSTRIAL BUILDINGS 526 MARKET SIZE (SF) 44,932,94 VACANCY 4,6,797 SF (8.9%) AVAILABLE SPACE 4,431,32 SF (9.9%) 1Q13 NET ABSORPTION 53,861 YTD NET ABSORPTION 53,861 1Q13 NEW SUPPLY (SF) UNDER CONSTRUCTION (SF) Burlington 83 Westosha Airport Wisconsin Illinois Racine Sturtevant Kenosha Regional Airport Pleasant Prairie Kenosha 32 Zi Submarket Trends Vacancy Rate Net Absorption Asking Rents 1,5, 875, 25, -375, ,, Inventory By City Construction Deliveries ,5, 2,, 1,5, Vacancy Rate (%) Net Absorption (SF) 6% 16% 34% Racine Pleasant Prairie Sturtevant 17% Kenosha Burlington 27% 17% 15% 13% 11% 9% 7% Southeast Wisconsin Overview The primary advantages of the Southeast Wisconsin submarket are the availability of affordable land for big box development as well as lower utility costs, property taxes and workers compensation when compared to submarkets in Illinois. The Lakeview Corporate Park in Pleasant Prairie, Wisconsin accounts for the lion s share of our statistical tracking in the Southeast Wisconsin industrial submarket. This 1,5-acre business park boasts 25 million SF of industrial space and is home to an international roster of companies including S.C. Johnson, IRIS, Yamaha and Jelly Belly. Over the past two years the Southeast Wisconsin submarket has been nothing short of a model for consistency, showing a gradual, but steady decline in vacancy rates over that period of time. With the current vacancy rate at 8.9%, it is down 5.3% from its peak at 14.2% in the second quarter of 21, vacancy continues to drop beyond pre-recession levels. Positive net absorption has been seen in the all but two quarters over the past five years in the Southeast Wisconsin submarket. During the first quarter of 213, the submarket absorbed 53,861 SF, as no significant new leases were signed. 1,, 5,, Southeast Wisconsin has witnessed positive absorption during all but two quarters over the past fi ve years Pictured Above: 11 88th Ave in Pleasant Prairie s LakeView Corporate Park, purchased by Good Foods Group LLC in January

13 Construction No new construction is currently taking place in the Southeast Wisconsin submarket, however CenterPoint Properties and Wispark LLC plan to build a 471,43 SF build-to-suit facility for Taiwan-based Ta Chen International Inc starting in second quarter. National developer Majestic Realty Co, based out of Los Angeles, has announced plans to build a 1.2 million SF speculative distribution facility on the land they recently purchased in Pleasant Prairie. The project is anticipated to break ground some time in 213. Available Space Profile MM.2 MM.5 MM 1.4 MM 1. MM 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ # of Buildings Southeast Wisconsin Overview 24 Transaction Activity The only significant transaction recorded during the first quarter in the Southeast Wisconsin submarket belonged to Good Foods Group LLC. The manufacturer of preservative-free dips, salads and sides is moving its corporate headquarters from Chicago to the LakeView Corporate Park in Pleasant Prairie and plans to renovate the 56,642 SF facility at 11 88th Ave where it will also use space for some production operations as well , 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Looking Forward Wisconsin s modern product and economic incentives continue to attract new tenants to the area, particularly companies from in Illinois, keeping demand consistently positive for the past several years. That trend looks to slow down slightly as fewer large contiguous space remain available, suggesting more minor fluctuations over the coming quarters. Significant Southeast Wisconsin Sale Transactions 1st Qtr 213 Property Address City Size (SF) Sale Price Price PSF Buyer Seller 11 88th Ave Pleasant Prairie 56,642 $2,7, $48. Good Foods Group LLC First American Bank Significant Southeast Wisconsin Lease Transactions 1st Qtr 213 Property Address City Leased (SF) Tenant Comments None to report NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - FIRST QUARTER

14 I-9/Northwest POPULATION 212, POPULATION CHANGE +26.4% # INDUSTRIAL BUILDINGS 434 MARKET SIZE (SF) 26,11,391 VACANCY 2,92,769 SF (8.%) AVAILABLE SPACE 2,391,166 SF (9.8%) 1Q13 NET ABSORPTION 249,232 YTD NET ABSORPTION 249,232 1Q13 NEW SUPPLY (SF) 223,488 UNDER CONSTRUCTION (SF) Submarket Trends Hampshire Carpentersville East Dundee Elgin Vacancy Rate Net Absorption Asking Rents South Elgin 4, 2, -2, -4, Inventory By City % 5% 7% % Vacancy Rate (%) 73% Construction Deliveries Net Absorption (SF) Elgin Carpentersville South Elgin East Dundee Dundee, Genoa, Marengo, Hampshire, etc. 14% 12% 1% 8% 6% I-9/Northwest Overview The I-9/Northwest industrial submarket is attractive to companies looking for excellent interstate access, relatively low taxes, potential incentives and a strong labor pool. Most of the industrial inventory base in the submarket is located within minutes of one of several 4-way intersections with I-9. This serves to make the I-9/Northwest submarket a good distribution point for companies that are serving the I-9/upper-midwest supply chain. Relatively low taxes are a benefit throughout the submarket and TIF incentives are available in some areas. Additionally, the Elgin area provides an abundant, educated labor pool. Population along and near the Fox River has increased dramatically over the past decade. More than 73% of the total submarket inventory is located in Elgin. The past four quarters have witnessed an increase in demand in the I-9/Northwest submarket, as nearly one million SF of vacant space has been absorbed through leasing activity and user sales. The first quarter of 213 alone saw 249,232 SF absorbed, pushing the vacancy rate down 2 basis points to 8%, the lowest rate of the past five years. This rate is 3.8% below the 11.7% peak reached in mid Nearly one million SF of vacant space has been absorbed over the past four quarters through leasing activity and user sales Pictured Above: Northwest Pky in Elgin s Northwest Corporate Park, one of the three buildings recently purchased by Stockbridge Capital Group LLC

15 Construction Opus Development s 223,488 SF build-to-suit facility for Maxzone Vehicle Lighting was delivered during the first quarter, taking less than four months to be completed. Transaction Activity San Francisco-based real estate investment firm Stockbridge Capital Group purchased a 3-building portfolio totaling 574,32 SF within the Northwest Business Park from Clarion Partners. The three class A buildings included in the purchase are 25 Northwest Pky, Northwest Pky and Vantage Dr in Elgin. Available Space Profile.4 MM.8 MM.8 MM.5 MM , 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ # of Buildings I-9/Northwest Overview 2 Chicago Logistic Services, Inc. signed a long-term lease for the 88,84 SF building located at 51 Davis Rd, expanding its presence in Elgin, where they have multiple facilities including its headquarters. Distribution and warehousing company, Touchpoint Logistics Inc., renewed its lease for 1,14 SF at Galvin Dr in Elgin. Touchpoint also occupies and operates a second facility located at 41 Rock Creek in Joliet. 1 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Looking Forward The I-9/Northwest submarket picked up from where it left off in 212 as demand remained positive as a significant amount of vacant space was absorbed through increased transaction activity. The past four quarters demonstrate that significant demand in this relatively small submarket can have substantial effects. Expect improving conditions to continue through 213, but at a slower pace. Significant I-9/Northwest Sale Transactions 1st Qtr 213 Property Address City Size (SF) Sale Price Price PSF Buyer Seller 3-building industrial park sale Elgin 568,339 Undisclosed Undisclosed Stockbridge Capital Group LLC Clarion Partners LLC 1 Wesemann Dr West Dundee 223,488 $11,174,4 $5. Maxzone Auto Parts The Opus Group Significant I-9/Northwest Lease Transactions 1st Qtr 213 Property Address City Leased (SF) Tenant Comments Galvin Dr Elgin 1,14 Touchpoint Logistics, Inc. Lease renewal 51 Davis Rd Elgin 88,84 Chicago Logistic Services New lease Prairie Pky Gilberts 5,193 Echelon Design New lease 1385 Madeline Ln Elgin 43,484 Bergen International LLC New lease Northwest Pky Elgin 42,512 Marketing Alternatives New lease Italics denotes NAI Hiffman transaction NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - FIRST QUARTER

16 Northwest Cook POPULATION 524, POPULATION CHANGE +1.7% # INDUSTRIAL BUILDINGS 524 MARKET SIZE (SF) 28,431,27 VACANCY 1,959,66 SF (6.9%) AVAILABLE SPACE 2,9,931 SF (1.2%) 1Q13 NET ABSORPTION 47,837 YTD NET ABSORPTION 47,837 1Q13 NEW SUPPLY (SF) UNDER CONSTRUCTION (SF) Submarket Trends Vacancy Rate Net Absorption Asking Rents East Dundee gin gin 2 19 Bartlett Streamwood Hoffman Estates Lake Zurich Barrington Palatine Arlington Heights Elk Grove Village Chicago Executive Airport Schaumburg Des Plaines Bloomingdale Wood Dale Buffalo Grove Mt. Prospect Ohare Int'l Airport F kli 75, 45, 15, -15, -45, -75, Inventory By City 11% 8% 8% 8% Construction Deliveries ,, 8, 6, 4, % 19% Vacancy Rate (%) 35% Net Absorption (SF) Schaumburg Mt. Prospect Palatine Barrington Bartlett Rolling Meadows Hoffman Estates, Streamwood, etc. 15% 13% 11% 9% 7% 5% Northwest Cook Overview The Northwest Cook submarket is a desirable business location for entrepreneurial owners and corporate managers who reside in the area s suburban communities. The submarket is conveniently located close to Chicago s O Hare International Airport and has excellent access to Chicago and the western suburbs using I-9, I-29 and Route 53. The user base generally consists of specialized manufacturing and service companies. Many international companies, particularly Asian and European, have located their North American headquarters here due to the proximity to the airport. Few distribution facilities exist relative to neighboring submarkets. Many users come from the comparatively cramped O Hare submarket looking for more space or a location closer to their residences, but don t want to move all the way west to Elgin or beyond. Cook County taxes remain prohibitive to some users. Starting the year on a positive note, the Northwest Cook submarket saw demand continue to increase as 47,837 SF of vacant space was absorbed through new leasing and sale activity. After two years of steady improvement, vacancy rates have started leveling out, but still continue to gradually decrease. Vacancy dropped 2 basis points this quarter to 6.9%., one of the lowest vacancy rates in the market. 2, Vacancy has dropped to one of the lowest rates in the submarket s history, but has started to level out over the past few quarters Pictured Above: An artist s rendering of 178 Wall St in Mount Prospect, recently purchased by Sentinel Real Estate Coroporation for $16 million

17 Construction Largely a developed infill market, the majority of construction projects in the area are building additions. Transaction Activity Now that they have solidified drug benefits manager Caremark LLC as a tenant, the Alter Group Ltd. sold the 147,932 SF building at 178 Wall St in Mount Prospect. The buyer, New York-based real estate investment manager Sentinel Real Estate Corp., paid $16 million for the prescription drug distribution center located within the Lake Center Corporate Park. Available Space Profile.3 MM.5 MM.8 MM.9 MM.5 MM , 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ # of Buildings Northwest Cook Overview 45 Sensient Technologies Corporation, the world s leading supplier of flavors, fragrances and colors, purchased the 66,41 SF research and development lab building located at 5115 Sedge Blvd in Hoffman Estates from Givaudan Flavors Corporation for $5.65 million, or about $86. PSF , 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ The largest new lease signed during the first quarter involved wholesale distributor Pecca Warehouse taking 21,278 SF in Mount Prospect s Kensington Business Center. Looking Forward The vacancy rate in the Northwest Cook submarket has been decreasing for roughly three-and-a-half years, and has reached one of the lowest rates witnessed in the submarket s history. While interest in the area is expected to continue over coming quarters, large changes to this rate or periods of significant absorption are unlikely, as there are few large vacant blocks remaining. Significant Northwest Cook Sale Transactions 1st Qtr 213 Property Address City Size (SF) Sale Price Price PSF Buyer Seller 178 Wall St Mount Prospect 147,932 $16,, $18. Sentinel Real Estate Corporation The Alter Group 5115 Sedge Blvd Hoffman Estates 66,41 $5,65, $86. Sensient Technologies Corporation Givaudan Flavors Corporation Significant Northwest Cook Lease Transactions 1st Qtr 213 Property Address City Leased (SF) Tenant Comments 52 E Business Center Dr Mount Prospect 21,278 Pecca Warehouse New lease Plum Grove Rd Schaumburg 13,246 Innovative Marketing Solutions Lease renewal S Vermont St Palatine 1, Stanley Steemer Lease renewal 231 E Oakton St Mount Prospect 7,2 21 Autobody New lease Pinecrest Dr Prospect Heights 5,5 KST New lease Italics denotes NAI Hiffman transaction NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - FIRST QUARTER

18 North Cook POPULATION 414, POPULATION CHANGE +1.7% # INDUSTRIAL BUILDINGS 79 Grove MARKET SIZE (SF) 45,842,324 VACANCY 2,85,477 SF (6.1%) AVAILABLE SPACE 3,723,73 SF (8.1%) Wheeling Northbrook Glencoe 1Q13 NET ABSORPTION 17,122 YTD NET ABSORPTION 17,122 1Q13 NEW SUPPLY (SF) UNDER CONSTRUCTION (SF) ago Executive Airport n s Morton Grove 94 Evanston Submarket Trends Vacancy Rate Net Absorption Asking Rents e Des Plaines Ohare Int'l Airport 14 Niles Park Ridge 9 41 Skokie Lincolnwood Chicago 5, 3, 1, -1, -3, -5, Inventory By City 8% 13% 14% 17% Vacancy Rate (%) 28% 2% Net Absorption (SF) Wheeling Niles Skokie Northbrook Morton Grove Evanston, Glenview, Lincolnwood, Northfield, etc. 1% 8% 6% 4% 2% % North Cook Overview Desirable for users seeking quick access to Chicago, major area expressways, and the northern suburbs, the North Cook submarket is also attractive to long-term Chicago-based users looking to stay close to the city while escaping Chicago congestion. The area has the advantage of an inventory of buildings with better specifications than many of the antiquated buildings found in the city of Chicago. It tends to be a primarily owner/user market, with limited leasing opportunities. The user base generally consists of service providers and light manufacturers who tend to remain in their locations for extended periods of time, resulting in limited transaction velocity in the submarket. The inventory base is mostly comprised of 196s 197sera buildings with lower ceilings and low parking ratios. Higher taxes may be a deterrent for some users, while others are willing to pay the price for the location. Construction Deliveries , 4, 2, Demand turned positive during the first quarter in the North Cook submarket, as 17,122 SF of vacant space was absorbed through leasing and user sale activity. Reflecting this positive absorption, the North Cook vacancy rate decreased 3 basis points from last quarter, dipping to 6.1% by the end of March. This rate is down 2.1% from its Demand picked up through the fi rst quarter as several new leases and user sales pushed the vacancy rate down to 6.1% Pictured Above: 61 W Howard St in Niles, where Revolution Dance Wear leased 152,817 SF during the first quarter

19 8.2% peak in the second quarter of 21, and is 6 basis points below the rate recorded a year ago. Construction The North Cook submarket has experienced very little new development recently due to its status as a mature market. Available Space Profile.2 MM.7 MM.8 MM 1. MM 1. MM 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ North Cook Overview Transaction Activity The largest sale transaction completed in the first quarter belongs to Margolin Shoes, Inc. The company purchased the 234,817 SF building at 71 Central Park Ave in Lincolnwood. Known for its shoes and apparel, Margolin bought the 67% leased property as an investment for $4 million and plans to relocate its operations from Chicago into the remaining 73, SF of vacant space # of Buildings Revolution Dance Wear was responsible for the largest new lease completed during the first quarter. The provider of shoes, dancewear and costumes will be leasing 152,817 SF within the 321,57 SF industrial manufacturing building located at 61 W Howard St in Niles. 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Looking Forward With one of the lowest vacancy rates in the entire industrial market, the North Cook submarket continued its recent improvement trend as vacancy declined through the first quarter. Large swings in absorption are unlikely as few large contiguous blocks of space are available. Expect to see more smaller to mid-sized deals being completed in the coming year with the occasional larger transaction when space becomes available. Significant North Cook Sale Transactions 1st Qtr 213 Property Address City Size (SF) Sale Price Price PSF Buyer Seller 71 Central Park Ave Lincolnwood 234,817 $4,, $17. Margolin Shoes, Inc. MB Financial, Inc N Austin Ave Skokie 21,89 $1,15, $53. Safco LLC National Heat and Power Corp Northfield Rd Northfield 16,849 $1,1, $65. Temperature Equipment Corporation John Mosele & Sons Inc Significant North Cook Lease Transactions 1st Qtr 213 Property Address City Leased (SF) Tenant Comments 61 W Howard St Niles 152,817 Revolution Dance Wear New lease N Croname St Niles 27,676 AMA Sales New lease Landwehr Rd Northbrook 2, Euromarket Designs Inc New lease Oakton St Morton Grove 15,519 Undisclosed New lease 86 Chaddick Dr Wheeling 15,235 Global Wholesale W&S of Illinois New lease Oakton St Morton Grove 14,26 National Heat and Power Corp. New lease Commercial Ave Northbrook 11,83 Bionic Corporation New lease Italics denotes NAI Hiffman transaction NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - FIRST QUARTER

20 Fox Valley POPULATION 111, POPULATION CHANGE +14.1% # INDUSTRIAL BUILDINGS 496 MARKET SIZE (SF) 32,378,25 Elgin VACANCY 3,84,298 SF (9.5%) AVAILABLE SPACE 3,149,545 SF (9.7%) South Elgin Streamwoo 1Q13 NET ABSORPTION 87, YTD NET ABSORPTION 87,117 1Q13 NEW SUPPLY (SF) 163, UNDER CONSTRUCTION (SF) Dupage 59 Airport St Charles 64 Geneva West Chicago Ca Submarket Trends Batavia 38 Vacancy Rate Net Absorption Asking Rents Sugar 3 Grove North Aurora Aurora 88 Naperville 6, 3, -3, -6, , Inventory By City Construction Deliveries ,5, 1,2, 9, Vacancy Rate (%) Net Absorption (SF) 12% 35% West Chicago 25% St. Charles Batavia Geneva 28% 15% 13% 11% 9% 7% 5% Fox Valley Overview The Fox Valley submarket lies between the I-9/Northwest submarket to the north and the I-88 Corridor submarket to the south and has limited access to major expressways. It is primarily an owner/user market with leasing opportunities in the small to mid-size range. The user base generally consists of manufacturing companies that serve the area within close proximity to users homes. Much of the inventory is composed of mid-198s buildings in contrast to the modern bigbox distribution warehouses of neighboring submarkets. Many users choose to be in the Fox Valley submarket due to need and remain in the submarket long-term, resulting in limited transaction velocity. Experiencing positive net absorption in 6 of the past 7 quarters, the Fox Valley submarket continued the recent improvement trend during the first quarter of 213, absorbing 87,117 SF of vacant space. However, the area s vacancy rate saw a slight increase, up 2 basis points to 9.5% from the end of 212, but still well below its 12.2% peak recorded during the third quarter of 21. Despite continued leasing and user sale activity, sizeable new vacancies such as Houghton Mifflin Company leaving 17,462 SF in Batavia resulted in the increase. 6, 3, Absorption was positive due to the completion of a building expansion, but the vacancy rate increased due to new vacancies Pictured Above: 525 Shingle Oak Dr in West Chicago, one of the building purchased by Welsh Property Trust, LLC as part of a portfolio sale in January

21 Construction The 163, SF expansion of 18 Averill Road for Peacock Engineering Co. was completed during the first quarter by building owner Duke Realty Company. Peacock Engineering also leases 36,684 SF in nearby Carol Stream and is looking to expand further throughout the Chicago market. Transaction Activity Part of a five-building distribution portfolio spanning over four states, Welsh Property Trust, LLC purchased the 15, SF facility located at 525 Shingle Oak Dr in West Chicago. The building is currently fully leased to McCollister s Transportation System Inc. Available Space Profile.4 MM.6 MM 1, 19,999 2, 49,999.7 MM 5, 99,999.6 MM 1, 199,999 2,+.7 MM 8 # of Buildings Fox Valley Overview Product packager and manufacturer Express Packaging completed one of the largest leases during the first quarter in the Fox Valley submarket, leasing 145,528 SF at 1733 Downs Dr in West Chicago. 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Looking Forward The past year has witnessed steady conditions in the Fox Valley submarket. Transaction velocity is typically slower and large transactions are rare. In the coming quarters conditions are expected to gradually improve as additional vacant space is leased by tenants and users expanding in the area. Typically the submarket rarely draws new tenants due to its location and few large contiguous blocks of space remain available. Significant Fox Valley Sale Transactions 1st Qtr 213 Property Address City Size (SF) Sale Price Price PSF Buyer Seller 525 Shingle Oak Dr West Chicago 15, $7,868,594* $52.* Welsh Property Trust, LLC KTR Capital Partners LP Douglas Rd Batavia 124,8 $3,6, $29. MSG Marketing Jefferson Pilot Life Insurnace 3-property portfolio Batavia 61,963 $2,85, $46. West Wind Properties, LLC Morken & Associates Significant Fox Valley Lease Transactions 1st Qtr 213 Property Address City Leased (SF) Tenant Comments 1733 Downs Dr West Chicago 145,528 Undisclosed New lease 1155 Harvester Dr West Chicago 16,461 Express Packaging New lease 116 Powis Rd West Chicago 91,391 AGCO New lease 1645 Downs Dr West Chicago 55,644 Sleep Innovations New lease 417 Stone Dr St. Charles 29,811 Leviton Manfacturing Co, Inc Lease renewal *Allocated price based on portfolio sale price NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - FIRST QUARTER

22 Central DuPage POPULATION 392, POPULATION CHANGE +.7% # INDUSTRIAL BUILDINGS 1,93 MARKET SIZE (SF) 67,25,23 VACANCY 4,455,612 SF (6.6%) AVAILABLE SPACE 7,266,476 SF (1.8%) 1Q13 NET ABSORPTION 13,973 2 Schaumburg Elk Grove Village Ohare Int'l Airport YTD NET ABSORPTION 13,973 Bloomingdale 1Q13 NEW SUPPLY (SF) UNDER CONSTRUCTION (SF) 271,12 Glendale Heights 29 Addison 294 Submarket Trends est Chicago 64 Carol Stream 355 Elmhurst 83 Vacancy Rate Net Absorption Asking Rents Glen Ellyn Lombard 88 W 1,5, 1,, 5, -5, -1,, Inventory By City 7% 9% 2,5, 2,, 18% % 29% Vacancy Rate (%) 27% Construction Deliveries Net Absorption (SF) Addison Carol Stream Glendale Heights Elmhurst Hanover Park Bloomingdale, Lombard, Roselle, Villa Park, Wheaton 12% 1% 8% 6% 4% 2% Central DuPage Overview The well-positioned Central DuPage industrial submarket benefits from advantages including relatively low taxes, newer building inventory and an educated workforce. The recent completion of the I-355 extension, Chicago s newest expressway, has improved access to the area and spurred interest in the mature market. Users in the Central DuPage submarket vary by type and are not limited to primarily distribution like other nearby submarkets. The Central DuPage submarket has one of the lowest vacancy rates in the Chicago industrial market, dipping 2 basis points to 6.6% during the first quarter, 3.9% below the peak rates witnessed during much of 21. Today s vacancy rate is even below the rates witnessed prior to the economic recession, indicative of the interest and demand tenants and landlords have found in this premier industrial submarket. Several new leases and tenants moving into recently leased space resulted in positive absorption for the first quarter, totaling 13,973 SF. The area has now seen positive net absorption in seven of the past ten quarters, suggesting demand has remained consistent. 1,5, 1,, 5, Already one of the lowest vacancy rates in the entire market, Central DuPage vacancy dropped further during the fi rst quarter to 6.6% Pictured Above: 32 E Fullerton Ave in Carol Stream, where Demar Logistics leased 114,845 SF during the first quarter

23 Construction Four new construction projects totaling 271,12 SF recently broke ground. Two speculative buildings are underway in Bartlett s Brewster Creek Business Park totaling 9,23 SF and 64,192 SF. In the same business park, a 66,617 SF build-to-suit for document management solutions company RhinoDox is also under construction. Finally, a 5, SF building addition for TW Metals is underway at 235 Tubeway Dr in Carol Stream. Available Space Profile.7 MM 1.5 MM 1.9 MM 1.8 MM 1.5 MM 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Central DuPage Overview Transaction Activity The largest sale transaction of the first quarter involved Bone Enterprises LLC acquiring the 87, SF building at 88 N Addison Rd in Villa Park for $4.7 million. The building is currently fully leased by United Rentals # of Buildings Distribution and transportation services company Demar Logistics Inc leased 114,845 SF at 32 E Fullerton Ave in Carol Stream during the first quarter. The space features 11 exterior docks, two drive-in doors and 32-foot clear ceilings. 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Looking Forward The forecast continues to look positive as the housing market recovers, the economy improves and companies address expansion plans. Tenants will continue to consider the submarket for relocation, and look to take advantage of incentives and competitive lease rates being offered by area landlords. The ideal location and newer product offered by the Central DuPage submarket will result in continued demand through 213 and beyond. Significant Central DuPage Sale Transactions 1st Qtr 213 Property Address City Size (SF) Sale Price Price PSF Buyer Seller 88 N Addison Rd Villa Park 87, $4,7, $54. Bone Enterprises LLC J&R Partnership 235 W Pinehurst Blvd Addison 86,135 $3,754,4* $48.* Hillwood Development Corporation Bridge Development/Wanxiang America Della Ct Carol Stream 66,987 $4,766,5 $71. DCT Industrial Trust Connelly Partners Armitage Ct Addison 8,169 $2,3, $29. SFP Commercial Real Estate Private investor Significant Central DuPage Lease Transactions 1st Qtr 213 Property Address City Leased (SF) Tenant Comments Kimberly Dr Carol Stream 328,14 United Stationers Supply Co. Lease renewal 32 E Fullerton Ave Carol Stream 114,845 Demar Logistics New lease 2 E Lies Rd Carol Stream 96,728 Communications Supply Corporation, Inc Lease renewal 164 Fullerton Ct Glendale Heights 91,381 Beacon Roofing Supply Lease renewal 41 Gary Ave Roselle 83,499 US Tire & Exhaust New lease E Lies Rd Carol Stream 44,91 Ampac New lease *Allocated price based on portfolio sale price, 9% interest sale Italics denotes NAI Hiffman transaction NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - FIRST QUARTER

24 O Hare POPULATION 136, POPULATION CHANGE -2.9% # INDUSTRIAL BUILDINGS 1,72 MARKET SIZE (SF) 99,976,33 Heights Morto Grov VACANCY 8,371,879 SF (8.4%) AVAILABLE SPACE 12,215,421 SF (12.2%) 1Q13 NET ABSORPTION 72,59 YTD NET ABSORPTION 72,59 1Q13 NEW SUPPLY (SF) UNDER CONSTRUCTION (SF) 331,74 mburg 72 Itasca 9 Elk Grove Village 83 Des Plaines 45 Ohare Int'l Airport N Park Ridge Submarket Trends Vacancy Rate Net Absorption Asking Rents ngdale dale ghts Bensenville Addison Wood Dale Franklin Park Elmhurst Melrose 1,5, 9, 3, -3, -9, ,5, Inventory By City Vacancy Rate (%) Net Absorption (SF) 15% 13% 11% 9% 7% 5% O Hare Overview The O Hare submarket is unique due to its close proximity to O Hare International Airport and its central location at the crossroads of Chicago s expressway system. The O Hare submarket holds the most industrial inventory of all of the Chicagoland submarkets. Elk Grove Village alone is the nation s largest industrial park, boasting more than 4 million SF of industrial and flex space. New, state-of-the-art facilities are being built as older, obsolete structures are being town down in the O Hare submarket, as construction activity starts to pick up again. 9% 1% Elk Grove Village 11% Des Plaines 42% Bensenville Itasca 18% Wood Dale Rosemont 18% Construction Deliveries ,2, 9, 6, For the second straight quarter the O Hare submarket saw the vacancy improve and recorded positive net absorption. Dropping 7 basis points from last quarter to 8.4%, vacancy has declined at a relatively steady rate since peaking at 12.8% in mid-21. This rate has dropped below pre-recession levels, suggesting the O Hare market has fully recovered from the effects of the economic downturn. Several new leases and lease expansions combined to result in 72,59 SF of vacant space absorbed during the first quarter. Eight of the past ten quarters have experienced significant positive absorption. Construction 3, Vacancy dropped by 7 basis points as 72,59 SF was absorbed, continuing the recent improvement trend in the O Hare submarket Pictured Above: Supreme Dr in Bensenville, a 26,338 SF building leased by Wholesale Interiors during the first quarter

25 A complete building renovation is now underway on the 11,863 SF facility located at 2567 N Greenleaf Ave in Elk Grove Village. Construction continues on the 229,841 SF build-to-suit facility for international freight forwarder Yusen Logistics at 13 Busse Rd in Elk Grove Village. Both projects are expected to be completed in the second quarter. Transaction Activity Hillwood Development Corporation purchased two Elk Grove Village buildings totaling 393,8 SF as part of a five-property portfolio the company acquired for $35 million in January. The buildings are located at 221 Lunt Ave and 2727 E Higgins Rd and are planned to be redevelopment into state-of-the-art air cargo buildings. Available Space Profile 1.2 MM 1.6 MM 1, 19,999 2, 49, MM 3.2 MM 5, 99,999 1, 199,999 2,+ 2.9 MM 2 # of Buildings O Hare Overview Wholesale furniture supplier Wholesale Interiors signed the largest new lease of the first quarter, taking the entire 26,338 SF warehouse building at Supreme Dr in the Bensenville Industrial Park. The company will use the facility as an additional distribution center in order to deliver its product to retailers in the area. 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Looking Forward Strong demand continued during the first quarter, as evidenced by significant leasing activity and absorption. The proximity to O Hare airport, area expressways and the diversity of inventory in the submarket will continue to bring interest and demand to the area as the economy continues to recover. Significant O Hare Sale Transactions 1st Qtr 213 Property Address City Size (SF) Sale Price Price PSF Buyer Seller 221 Lunt Ave Elk Grove Village 212,4 $7,367,791* $39.* Hillwood Development Corporation Bridge Development/Wanxiang America 2727 E Higgins Rd Elk Grove Village 181,4 $6,292,454* $39.* Hillwood Development Corporation Bridge Development/Wanxiang America 3-building portfolio Bensenville 171,241 $12,458,25 $73. Zilber Property Group First Industrial Realty Trust 345 E Green St Bensenville 46,45 $1,785, $39. Village of Bensenville Sarge LLC Significant O Hare Lease Transactions 1st Qtr 213 Property Address City Leased (SF) Tenant Comments Lunt Ave Elk Grove Village 39,284 Cloud/Ryt-Way Industries Lease renewal/expansion Supreme Dr Bensenville 26,338 Wholesale Interiors New lease Brummel Ave Elk Grove Village 245,217 Creative Werks New lease 81 W Bryn Mawr Ave Itasca 23,64 Nypro New lease N Third Ave Des Plaines 155,568 Midland Paper Company Lease expansion/renewal 151 Nicholas Blvd Elk Grove Village 154,633 Quality Logistics Systems Lease renewal *Allocated price based on portfolio sale price, 9% interest sale NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - FIRST QUARTER

26 West Cook POPULATION 25, POPULATION CHANGE -1.9% # INDUSTRIAL BUILDINGS 734 MARKET SIZE (SF) 59,695,718 VACANCY 4,954,132 SF (8.3%) AVAILABLE SPACE 7,14,424 SF (11.6%) 1Q13 NET ABSORPTION 196,215 YTD NET ABSORPTION 196,215 1Q13 NEW SUPPLY (SF) UNDER CONSTRUCTION (SF) Submarket Trends Vacancy Rate Net Absorption Asking Rents k Grove Village Bensenville 29 Elmhurst Ohare Int'l Airport Franklin Park Melrose Park Bellwood Schiller Park Niles 43 Oak Park Skokie 9 94 Chicago 1,, 6, 2, -2, -6, -1,, Inventory By City 12% 5% 8% 9% 1,5, 1,2, 9, % Vacancy Rate (%) 36% Construction Deliveries Net Absorption (SF) Franklin Park Melrose Park Bellwood Schiller Park Berkeley 15% 13% 11% 9% 7% 5% Harwood Heights, Hillside, Maywood, Norridge, River Grove West Cook Overview The West Cook submarket draws companies from the city of Chicago looking for a more functional building and additional amenities compared to the aging, often obsolete inventory of properties in Chicago. Additionally, companies migrate to the area from the nearby O Hare submarket where interstate and airport access is similar, but rental rates tend to be higher. The West Cook submarket benefits from good access to the city of Chicago, close proximity to area interstates and rail providers and relatively low rental rates. It is primarily an owner/ user market, but leasing opportunities have increased as institutional and private owners have entered the submarket. Conditions have been improving in the West Cook submarket for the past two years. Although the area was one of the last submarkets to respond to the recovery, the vacancy rate has dropped by 4% since it peaked in mid-21. During the first quarter of 213, 196,215 SF of vacant space was absorbed through user sales and new leases being signed, pushing the vacancy rate down an additional 7 basis points. By the end of March, this rate stood at 8.3%, slightly higher than rates witnessed five years ago as the recession was just getting underway. 6, 3, Demand has returned in earnest to the submarket, and today s vacancy rate is only slightly higher than rates witnessed fi ve years ago Pictured Above: Addison St in Franklin Park, a 35, SF manufacturing building recently purchased by MultiGroup Logistics

27 Construction There are no ongoing construction projects in the West Cook submarket. The former Central Grocers site, a 24.8 acre parcel, is still awaiting a build-to-suit opportunity and can accommodate a building up to 7, SF in size. Transaction Activity MultiGroup Logistics purchased the 35, SF well-maintained building located at Addison St in Franklin Park for $4.5 million, or about $15. PSF, representing the largest sale transaction of the quarter. Secondary wholesaler Nubani Trading Co. purchased the 87,19 SF warehouse at 285 Oak St in Bellwood. The supplier of bulk candy to retail outlets will use the facility to store hundreds of various brands of novelty and wholesale candy. Available Space Profile MM 1.5 MM.4 MM 1. MM 1.6 MM 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ # of Buildings West Cook Overview Minneapolis-based United Business Mail recently completed the largest first quarter lease transaction, leasing 41,19 SF in the 82,28 SF industrial manufacturing building at 117 Grand Ave in Northlake. The company specializes in First Class Letter Mail, however offers a wide variety of mailing serves. 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Looking Forward Demand has returned in earnest to the West Cook submarket over the past year-and-a-half, following a period of stagnation and comparatively high vacancy rates. While transaction activity is expected to remain elevated over coming quarters, only a few large contiguous spaces remain available, meaning large fluctuations in vacancy or absorption are unlikely. Significant West Cook Sale Transactions 1st Qtr 213 Property Address City Size (SF) Sale Price Price PSF Buyer Seller Addison St Franklin Park 35, $4,5, $15. Multigroup Logistics MacLean Fastener, Inc. 285 Oak St Bellwood 87,92 $3,2, $36. Nubani Trading Co National Life Insurance Company Significant West Cook Lease Transactions 1st Qtr 213 Property Address City Leased (SF) Tenant Comments 117 Grand Ave Northlake 41,19 United Business Mail New lease 53 Proviso Dr Melrose Park 37, Neill Cartage New lease 519 W Lake St Melrose Park 36,627 Undisclosed New lease 151 Delta Pky Schiller Park 16,39 JMI New lease Pearl St Schiller Park 5,789 Builders Chicago Corporation New lease Italics denotes NAI Hiffman transaction NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - FIRST QUARTER

28 Chicago POPULATION 2,695, POPULATION CHANGE -6.9% # INDUSTRIAL BUILDINGS 2,82 MARKET SIZE (SF) 213,777,7 VACANCY 18,672,289 SF (8.7%) mburg 29 Elk Grove Village Des Plaines Ohare Int'l Airport Grove Evanston 94 Niles Skokie 41 AVAILABLE SPACE 23,224,863 SF (1.8%) 1Q13 NET ABSORPTION 91,949 YTD NET ABSORPTION 91,949 1Q13 NEW SUPPLY (SF) UNDER CONSTRUCTION (SF) Submarket Trends ngdale 355 Wood Dale Elmhurst Burr Ridge Franklin Park Melrose Park La Grange Chicago North Oak Park 29 Cicero Chicago Midway Airport Bedford Park Bridgeview Chicago South Vacancy Rate Net Absorption Asking Rents ngbrook ville 355 Palos Heights 294 Alsip 57 Blue Island 94 9 G /Chi Ai 2 MM 1 MM -1 MM -2 MM -3 MM ,, 1,5, 1,, 5, Vacancy Rate (%) Net Absorption (SF) Construction Deliveries % 1% 9% 8% 7% 6% Chicago Overview The industrial market within the city limits is as diverse as its residents. Much of the modern development in recent years has taken place in neighborhoods close to downtown, such as Pilsen/Bronzeville (Near South), Kinzie Corridor/Avondale (Near North), and Back of the Yards/Crawford (Near Southwest). Typical firms that take advantage of this proximity to densely-populated areas include food and home improvement-related distribution companies. There are still many industrial companies that operate in less-functional buildings, but make the trade-off for a readily available labor pool. Since 1987, the City of Chicago has seen a slowing of the erosion of its industrial base, through the creation of Planned Manufacturing Districts (PMDs). These PMDs make it nearly impossible to change the zoning, which has kept the underlying cost of industrial land low. Companies that would have otherwise been forced to greenfield developments in the suburbs have remained within Chicago city limits. Total City of Chicago Sale Transactions 12 MM 1 MM 8 MM 6 MM 4 MM 2 MM Total SF Sold Total SF Sold (Annualized) # Total # of Sales Average Price PSF $7. $6. $5. $4. $3. $2. Source: NAI Hiffman & CoStar The city has been slow to respond to the market recovery. It wasn t until mid-212 that the area saw any appreciable absorption. While vacancy has been on the decline for much of the past year, it remains well above While the city has been slow to respond to the market recovery, the past year has seen signifi cant absorption for the fi rst time in years Pictured Above: E 98th Pl, where Berkshire Refrigerated Warehouse, LLC leased 72,6 SF during the first quarter

29 levels witnessed prior to the recession. The first quarter of 213 witnessed the greatest absorption of vacant space the city has seen in several years, as 91,949 SF was absorbed through new leases and user sales. The vacancy rate accordingly dropped 3 basis points to 8.7% by the end of March. Available Space Profile 1.7 MM 3. MM 7.7 MM 4.6 MM 1, 19,999 2, 49,999 5, 99,999 1, 199,999 Chicago Overview Construction 6.3 MM 2,+ Given the limited available space, development will remain limited, aside from any building expansions and specialty construction projects. 2 # of Buildings Transaction Activity The largest sale transaction completed involved Great Lakes Property Holdings LLC purchasing the 281,132 SF building from investor Terrance Upton for $3,78,, or about $13. PSF Logistics and warehousing company Berkshire Refrigerated Warehouse, LLC signed the largest new lease of the first quarter, taking 72,6 SF within the 29,934 SF building at E 98th Pl in the Calumet Business Center. 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Looking Forward The unique product in the industrial parts of the city offers certain types of users a place to call home. While the vacancy rate decreased and space has been absorbed over the past year, conditions in the city don t always correlate with trends in the overall market. Over time, Chicago s vacancy rate is expected to remain variable, as new tenants move in and others leave. Significant Chicago Sale Transactions 1st Qtr 213 Property Address Size (SF) Sale Price Price PSF Buyer Seller 2141 S Jefferson St 281,132 $3,78, $13. Great Lakes Property Holdings LLC Terrance Upton 4124 S Racine Ave 139, $2,6, $19. Edsal Manufacturing Company, Inc. LaGROU Distribution Inc S Carpenter St 42,7 $1,527,5 $36. Chicago Coffees and Teas Sitex Group Significant Chicago Lease Transactions 1st Qtr 213 Property Address Leased (SF) Tenant Comments E 98th Pl 72,6 Berkshire Refrigerated Warehouse, LLC New lease 9 E 13rd St 62,492 Samuel, Son & Co. Inc. New lease E 97th Pl 51,72 Noble Americas Lease renewal 27 W Roosevelt Rd 32,65 Chicago Transit Authority New lease 1227 W Fulton St 26, Aspen Foods Lease renewal 3642 S Kedzie Ave 11,15 Univar New lease NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - FIRST QUARTER

30 3 59 I-88 Corridor POPULATION 578, POPULATION CHANGE +25.8% # INDUSTRIAL BUILDINGS 772 MARKET SIZE (SF) 62,12,314 VACANCY 4,571,237 SF (7.4%) AVAILABLE SPACE 5,222,578 SF (8.4%) 1Q13 NET ABSORPTION 238,662 YTD NET ABSORPTION 238,662 1Q13 NEW SUPPLY (SF) 177,357 UNDER CONSTRUCTION (SF) 8, St Charles 29 Dupage Carol Stream Airport Elmhurst West Chicago 355 Batavia Oak Brook North Aurora Lisle Downers Naperville Grove Sugar Grove 53 Aurora 34 Woodridge Montgomery 55 3 Bolingbrook Submarket Trends Vacancy Rate Net Absorption Asking Rents 1,, 6, 2, -2, -6, -1,, Inventory By City 7% 15% 2,5, 2,, 1,5, 1,, 17% % Vacancy Rate (%) 43% Construction Deliveries Net Absorption (SF) Aurora Naperville Montgomery Downers Grove Oswego, Westmont, North Aurora, Hinsdale, Lisle, etc. 15% 13% 11% 9% 7% 5% I-88 Corridor Overview The I-88 Corridor industrial submarket saw increased demand and speculative development over the previous five years due to the lack of land for development in feeder submarkets such as Central DuPage and West Cook. Developers were drawn to the large available land sites and easy access to major expressways that the I-88 submarket has to offer. This rapid pace of development has stopped over the past three years as obtaining project financing became difficult. The recent improvement trend witnessed in the I-88 Corridor continued through the first quarter as 238,662 SF of vacant space was absorbed largely due to new leases being signed and a 177,357 SF building expansion being completed during the period. The vacancy rate declined slightly to 7.4% compared to last quarter s 7.5% rate. However, this is 2% below the rate recorded a year ago, and a whopping 6.8% below the peak rate of 14.2% recorded in late 29. Twelve of the past thirteen quarters have witnessed positive net absorption. Construction PREMIER Design & Build Group recently completed a 177,357 SF addition onto Midwest Warehouse s already 31,56 SF building at 5,, Twelve of the past thirteen quarters have witnessed improving conditions, with vacancy dropping 6.8% from its peak levels Pictured Above: Baseline Rd in Montgomery, recently purchased by STAG Industrial Management, LLC for $19.4 million

31 2885 Diehl Rd in Naperville bringing the total building size to 478,917 SF. The expansion adds 53 new dock doors, 4 new trailer parking spaces and a 6,2 SF office space which in turn has created 3 new jobs. Construction continued on the build-to-suit in Aurora s Prime Aurora Business Park for Supermax. The 8, SF facility broke ground during the fourth quarter of 212 and is on track for completion by the end of the year. Available Space Profile.6 MM 1.3 MM 1. MM 1.2 MM 1.1 MM 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ I-88 Corridor Overview Transaction Activity Boston-based real estate company STAG Industrial Management, LLC completed the largest sales transaction in the I-88 Corridor during the first quarter, buying the 584,31 SF building at Baseline Rd in Montgomery. The industrial manufacturing facility sold for $19,4,, or about $33. PSF # of Buildings The largest lease signed during the first quarter in the I-88 Corridor was a renewal, and involved freight management company UTi Worldwide electing to stay in the 592,672 SF building they lease at 8 Bilter Rd in Aurora. 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Looking Forward The I-88 Corridor vacancy rate has now dipped below levels seen in 28 prior to the economic recession. The area was one of the first submarkets to turn around in 21 and one of the first to recover. The demand witnessed in the I-88 Corridor and the resulting consecutive periods of absorption suggest that the recovery will eventually spread throughout all of the Chicago industrial market submarkets as the economy improves. Significant I-88 Corridor Sale Transactions 1st Qtr 213 Property Address City Size (SF) Sale Price Price PSF Buyer Seller Baseline Rd Montgomery 584,31 $19,4, $33. STAG Industrial Management, LLC Steve Ostrowski 277 Eola Rd Aurora 251,768 $11,25, $45. Principal Financial Group Manulife Real Estate 72 Frontenac Rd Naperville 171,935 $5,759,822 $34. Reebie Storage & Moving Co., Inc. High Street Equity Advisors Significant I-88 Corridor Lease Transactions 1st Qtr 213 Property Address City Leased (SF) Tenant Comments 8 Bilter Rd Aurora 592,672 UTi Worldwide Lease renewal 12 N Overland Dr North Aurora 9, Lanter Delivery Systems Lease renewal 2453 Prospect Dr Aurora 86,75 Houston Wire & Cable Lease renewal 256 White Oak Cir Aurora 35,545 Dedicated Logistics New lease 31 Airport Rd North Aurora 23,243 Sara Lee Lease renewal 212 Corporate Ln Naperville 21,46 BOF Corporation Lease renewal Italics denotes NAI Hiffman transaction NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - FIRST QUARTER

32 I-55 Corridor POPULATION 243, POPULATION CHANGE +37.1% # INDUSTRIAL BUILDINGS 658 MARKET SIZE (SF) 81,47,73 VACANCY 5,657,695 SF (6.9%) AVAILABLE SPACE 1,535,182 SF (12.9%) 1Q13 NET ABSORPTION 75,623 YTD NET ABSORPTION 75,623 a Naperville 53 Downers Grove Woodridge Hinsdale Burr Ridge 294 Wi Spr 1Q13 NEW SUPPLY (SF) 725,924 UNDER CONSTRUCTION (SF) 238, 59 Bolingbrook Submarket Trends 3 55 Romeoville Vacancy Rate Net Absorption Asking Rents Plainfield MM 3 MM 2 MM 1 MM MM Vacancy Rate (%) Net Absorption (SF) 15% 12% 9% 6% 3% % I-55 Corridor Overview Of all of the Chicago area industrial submarkets, the I-55 Corridor has seen the most activity and development interest over the past several years. As a result, the majority of the available land parcels are either already developed or are controlled by developers, rendering the I-55 Corridor an infill market with little additional land available for significant new development. Inventory By City 1 MM 9% 4% 4% 12% 35% 36% Bolingbrook Romeoville Woodridge Lemont Plainfield Construction Deliveries Burr Ridge, Forest View, Willowbrook Conditions improved during the first quarter of the new year following a brief setback at the end of 212 when new vacancies offset the effects of transaction activity. Several new leases and two construction completions pushed net absorption positive for the first quarter, totaling 75,623 SF for the three month period. This pushed the vacancy rate down slightly to 6.9%. A year ago, this rate was nearly a full percentage point higher at 7.8%. At its peak, prior to a period between 21 and 211 when the signing of several large leases resulted in the absorption of more than 5 million SF and a dramatic drop in the vacancy rate, vacancy hovered around 14% for much of 28 and MM 6 MM 4 MM Construction Two new speculative facilities were completed during the first quarter 2 MM The I-55 Corridor has witnessed one of the most impressive rebounds the market has ever seen, with vacancy reaching historic lows below 7% Pictured Above: 335 Crossroads Pky in Bolingbrook, the 288, SF manufacturing building recently purchased by Duke Realty Corporation for $1.7 million

33 including a 64,124 SF building in Romeoville s DCT Boldt Park and a 121,8 SF building in Lockport s Heritage Crossing Corporate Center. FedEx Ground Distribution s 238, build-tosuit facility in Romeoville s Pinnacle Business Park is still under construction and is expected to open in September. Transaction Activity Duke Realty Corporation acquired the 288, SF building at 335 Crossroads Pky in Bolingbrook, adding to its portfolio of ten fully leased building in the Crossroads Business Park totaling 3.3 million SF. Available Space Profile MM.5 MM.7 MM 1.5 MM 1.5 MM 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ # of Buildings I-55 Corridor Overview Plymouth, Michigan-based container manufacturer PlastiPak leased the entire 367,999 SF building at 122 Werch Dr in Woodridge during the first quarter on a long-term basis Looking Forward The I-55 Corridor has witnessed one of the most impressive rebounds the Chicago industrial market has seen. Vacancy has reached a historic low below 7% and the market is experiencing rent growth. The only threat to this low vacancy rate remains several large spaces that are being marketed but are not yet vacant. Two are currently occupied by Home Depot and are greater than 7, SF each. If these spaces are not filled by the time the tenants move out, the vacancy rate would spike. Nearly 13% of the space in the submarket is being marketed as available. Despite this minor concern, demand is expected to remain strong in the I-55 Corridor due to its ideal location and modern product. 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Significant I-55 Corridor Sale Transactions 1st Qtr 213 Property Address City Size (SF) Sale Price Price PSF Buyer Seller 335 Crossroads Pky Bolingbrook 288, $1,7, $37. Duke Realty Corporation BlackRock, Inc Remington Blvd Bolingbrook 253,81 $14,, $55. Liberty Property Trust D&H Distributing Company 2421 W 143rd St Plainfield 142, $4,, $28. Muehlstein Holding Corporation Polymer Services, Inc. 595 Territorial Dr Bolingbrook 18,154 $6,75, $56. KTR Capital Partners Nicolson Porter & List, Inc. Significant I-55 Corridor Lease Transactions 1st Qtr 213 Property Address City Leased (SF) Tenant Comments 553 S Joliet Rd Bolingbrook 417,9 Fairrington Lease renewal 122 Werch Dr Woodridge 367,999 Waters of America/PlastiPak New lease 43 Gibraltar Dr Bolingbrook 281,464 Sony Music Holdings Inc. Lease renewal 335 Crossroads Pky Bolingbrook 19,8 RTC Industries New lease 115 W 115th St Bolingbrook 183,5 Art Van Furniture New lease 3 Territorial Ct Bolingbrook 125,448 Chicago Office Technology Group (Xerox) New lease *Allocated price based on portfolio sale price Italics denotes NAI Hiffman transaction NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - FIRST QUARTER

34 South Cook POPULATION 716, POPULATION CHANGE +.5% # INDUSTRIAL BUILDINGS 1,127 MARKET SIZE (SF) 85,973,64 VACANCY 8,442,43 SF (9.8%) AVAILABLE SPACE 1,35,776 SF (11.9%) 1Q13 NET ABSORPTION 267,519 YTD NET ABSORPTION 267,519 1Q13 NEW SUPPLY (SF) 171,67 UNDER CONSTRUCTION (SF) Submarket Trends Vacancy Rate Net Absorption Asking Rents Woodridge le Tinley Park Mokena Bedford Park Bridgeview Alsip Palos Heights Chicago Midway Airport 5 Matteson 57 Blue Island 1 1 Park Forest 83 South Holland Sauk Village Gary/Chi Hammond 8 94 Schererville Monee is n a 2 MM 1 MM -1 MM -2 MM Inventory By City 2,5, 2,, 1,5, 35% Vacancy Rate (%) 26% 5% 8% 11% 14% Bedford Park Alsip Construction Deliveries Net Absorption (SF) Chicago Heights Bridgeview South Holland Other Southern Cook Communities 15% 13% 11% 9% 7% South Cook Overview The South Cook submarket is one of the Chicago metropolitan area s largest in terms of geographic size and total square footage. The area benefits from a solid mix of manufacturing and distribution facilities due to an abundance of skilled, educated labor, and excellent access to several major expressways, train lines and public transportation. The submarket consists of primarily older product with scattered modern infill developments of around 2 million SF in Bedford Park and additional projects in Alsip and Sauk Village. Ownership is mixed, including institutional, owner/user and both national and local private owners. While its location close to Chicago is key, Cook County taxes can be a financial burden. The South Cook vacancy rate dropped into single digits during the first quarter for the first time in five years. The rate decreased 2 basis points over the past three months to finish the quarter at 9.8%. This rate is 1.5% below the 11.3% vacancy recorded a year ago and 3.8% below the 13.6% peak rate reached four years ago. Net absorption totaled 267,519 SF due to a few new leases being signed and a buildto-suit facility being completed. 1,, 5,, Vacancy has been decreasing for the past four years and dropped into the single digits during the fi rst quarter Pictured Above: 2521 State St in Chicago Heights, where Delta Steel leased 1, SF during the first quarter

35 Construction Meridian Design Build completed the 71,67 SF cross-docked build-to-suit facility for Polmax Transportation Co. during the first quarter. The new location in Alsip will now become its company headquarters. Available Space Profile.8 MM 1.3 MM 4.3 MM 2. MM 1, 19,999 2, 49,999 5, 99,999 1, 199,999 South Cook Overview Transaction Activity 2. MM 2,+ The Valspar Corporation, one of the largest global coatings manufacturers in the world, completed the largest purchase of the first quarter, buying a two building portfolio. The two buildings located in Matteson and Chicago Heights 1 8 # of Buildings total 48,45 SF and were purchased for $1.1 million from Ace 6 Hardware Corporation. 4 2 Steel distribution company Delta Steel signed a new five-year lease at 2521 State St in Chicago Heights, completing the largest lease transaction of the first quarter. The company will occupy 1, SF in the building which was constructed in , 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Looking Forward The South Cook submarket continues to attract logistics and manufacturing businesses to the area and has nearly returned to pre-recession vacancy figures. However, this recovery has taken place in the submarket s more modern and more desirable business parks. Much of the product in the South Cook submarket is older and not as functional as the high-ceiling, precast modern product. While these buildings have struggled in the recovery, it is likely that demand will eventually translate to these types of spaces and companies expand and need to be close to the city. South Cook Sale Transactions 1st Qtr 213 Property Address City Size (SF) Sale Price Price PSF Buyer Seller 2 building portfolio Matteson/Chicago Heights 48,45 $1,1, $21. The Valspar Corporation Ace Hardware Corporation W 183rd St Orland Park 35,788 Undisclosed Undisclosed Kharis Properties Dawn-G LLC South Cook Lease Transactions 1st Qtr 213 Property Address City Leased (SF) Tenant Comments 2521 State St Chicago Heights 1, Delta Steel New lease 66 S Central Ave Bedford Park 38,233 Enterprise Rent-A-Car New lease Hungtongton Dr Calumet City 17,55 Undisclosed New lease NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - FIRST QUARTER

36 59 I-8/Joliet Corridor POPULATION 447, POPULATION CHANGE +45.5% # INDUSTRIAL BUILDINGS 617 MARKET SIZE (SF) 64,714,478 VACANCY 7,415,555 SF (11.5%) AVAILABLE SPACE 8,933,786 SF (13.8%) 1Q13 NET ABSORPTION 62,19 North Aurora Aurora Plainfield 88 Downers 55 Grove Bolingbrook 294 C A YTD NET ABSORPTION 62,19 1Q13 NEW SUPPLY (SF) 1,61,184 UNDER CONSTRUCTION (SF) 2,38,959 Submarket Trends Vacancy Rate Net Absorption Asking Rents e Ottawa Seneca Tinley Park 3 6 Shorewood Joliet Mokena 3 New Lenox 53 Minooka Channahon Elwood Kankakee 2. MM 1.5 MM 1. MM.5 MM MM Inventory By City Vacancy Rate (%) Net Absorption (SF) 25% 21% 17% 13% 9% 5% I-8/Joliet Corridor Overview The I-8/Joliet Corridor submarket has historically catered to multi-state big box distribution. Its access to I-8 and I-55 position the corridor well for distribution operations. In addition, the nation s largest inland port is located in Joliet and Elwood. This intermodal development, also known as CenterPoint Intermodal Center, has remained a bright spot not only in the corridor, but for the entire Chicago market. CenterPoint Intermodal Center now offers intermodal service as well as direct rail service with both the BNSF and Union Pacific Railroads. Construction Deliveries MM 6 MM 4 MM 27% 6% 8% 15% 44% Joliet Elwood Minooka Tinley Park Ottawa, Mokena, New Lenox, Shorewood, Frankfort, etc. The I-8/Joliet Corridor vacancy rate increased by 5 basis points to 11.5% during the first quarter due to the completion of the new 1 million SF speculative facility in Clarius Park Joliet business park which is not yet leased. Despite this increase, absorption was positive due to continued elevated leasing activity and tenants taking occupancy of recently leased space. Net absorption for the first quarter totaled 62,19 SF. Construction Aside from the delivery of the 1,1,184 speculative building in Clarius Park Joliet, a 6, SF building addition was completed at 26 W 2 MM Construction activity has picked up in the area, with more than 1 million SF completed during the fi rst quarter and 2.4 million SF under construction Pictured Above: Rock Creek Blvd in Joliet s Rock Run Business Park, where Touchpoint Logistics Inc. expanded into the building s larger 15,5 SF during the first quarter

37 Haven Rd in Joliet for Central Grocers. Three buildings remain under construction in the submarket, all slated to be completed during the second half of the year. The largest is a 1.6 million SF building distribution building for Home Depot to complement its recently constructed 657,6 SF rapid deployment center in the CenterPoint Intermodal Center-Joliet. Construction continues on Trader Joe s two-building distribution center totaling 695,911 SF in Minooka. Finally, Dayton Freight Lines is building a 67, SF build-to-suit freight terminal building in Crest Hill. Available Space Profile.5 MM.5 MM.6 MM.8 MM 6.5 MM 1 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ # of Buildings I-8/Joliet Corridor Overview Transaction Activity 8 Michigan-based breakfast and snack giant Kellogg s renewed its 6 1,34,2 SF warehouse lease at 6225 E Minooka Dr in Minooka. 4 2 Third party warehouse and distribution company Touchpoint Logistics leased and moved into the 15,5 SF space in the 25,56 SF building located at Rock Creek Blvd in Joliet s Rock Run Business Park from the smaller 1,6 unit in the same building. 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Looking Forward One of the market s most active submarkets, conditions in the I-8/Joliet Corridor continue to improve. The area wasn t as hard hit by the recession as other nearby submarkets, as space continued to be absorbed during the downturn. Demand for space is fueled by the cost-effective advantages that the I-8/Joliet Corridor offers to businesses. This, combined with the area s modern product, ample land for development and the presence of the intermodal centers will continue to draw companies to the I-8/Joliet Corridor I-8/Joliet Corridor Sale Transactions 1st Qtr 213 Property Address City Size (SF) Sale Price Price PSF Buyer Seller None to report I-8/Joliet Corridor Lease Transactions 1st Qtr 213 Property Address City Leased (SF) Tenant Comments 6225 E Minooka Dr Minooka 1,34,2 Kellogg s Lease renewal 41 Olympic Blvd Joliet 156,326 Petco Animal Supplies, Inc. Lease renewal Rock Creek Blvd Joliet 15,5 Touchpoint Logistics Inc. New lease/relocation 1151 E Laraway Rd Joliet 134,26 NewStream Enterprises New lease 7979 W 183rd St Tinley Park 41,466 PCS Industries New lease 795 W 185th St Tinley Park 37,586 Snyders of Hanover New lease 842 W 183rd St Tinley Park 36,149 Vision Integrated Graphics New lease 765 W 185th St Tinley Park 29,1 Vital Care Reps New lease Italics denotes NAI Hiffman transaction NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - FIRST QUARTER

38 Northwest Indiana POPULATION 486, POPULATION CHANGE +1.3% # INDUSTRIAL BUILDINGS 431 g MARKET SIZE (SF) 35,652,57 VACANCY 2,67,65 SF (7.5%) AVAILABLE SPACE 4,176,825 SF (11.7%) 3Q13 NET ABSORPTION 64,374 YTD NET ABSORPTION 64,374 1Q13 NEW SUPPLY (SF) UNDER CONSTRUCTION (SF) 1, 9 Gary/Chicago Airport 12 Hammond Gary 65 Merrillville 2 Porter Portage 6 Valparaiso Submarket Trends Illinois Indiana Crown Point Vacancy Rate Net Absorption Asking Rents Lowell 1,, 6, 2, -2, -6, -1,, Inventory By City 4% 11% 1,5, 1,2, 9, 6, 19% 19% Vacancy Rate (%) 25% 22% Net Absorption (SF) Hammond East Chicago Gary Portage Merrillville Other Northwest Indiana Suburbs Under Construction & Recent Deliveries 15% 13% 11% 9% 7% 5% Northwest Indiana Overview The Northwest Indiana submarket is a bifurcated market, with areas north of I-8 including the towns of Hammond, East Chicago, and Gary containing some of the heaviest manufacturing facilities in the world, home to companies like BP Amoco, US Steel, and Arcelor Mittal. There are many functionally obsolete crane & manufacturing buildings housing firms in this area that service the steel and chemical industries. South of I-8, towns such as Munster, Hobart, Merrillville and Portage cater to more modern business parks. Indiana has historically held significant economic advantages over Illinois, such as lower property taxes, utility costs, labor rates, and soft costs (workman s compensation and unemployment insurance). Most companies new to Northwest Indiana migrate from South Cook/Will Counties, but existing Northwest Indiana firms rarely move across the state line to Illinois. For the second straight quarter the Northwest Indiana submarket witnessed positive net absorption after experiencing a year of declining conditions. The area absorbed 64,374 SF of vacant space between January and March, pushing the vacancy rate down to 7.5%, 2 basis points below the rate during the fourth quarter of last year and down 4.61% from its peak at the end of 29. 3, Following a year of declining conditions, Northwest Indiana has posted positive net absorption for the past two quarters Pictured Above: The 6, SF facility located at 32 Sheffield Ave in Hammond, where Insulation Fabricators Inc. recently leased 4, SF

39 Construction A 1, SF build-to-suit project for construction equipment replacement part distributor ITR America LLC remains under construction. The new building is being constructed at 631 Northwind Pky in the Northwind Crossing business park. ITR currently occupies 3, SF in the park and will more than triple its current size when the new facility is complete sometime during the second quarter. Available Space Profile 1.5 MM.2 MM.4 MM 1.1 MM 1. MM 1, 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Northwest Indiana Overview Fort Wayne-based Aunt Millie s Bakeries plans to build a new 25, SF distribution facility and retail sales business in Merrillville which in turn would generate new jobs in the area # of Buildings Transaction Activity The largest new lease signed in the Northwest Indiana submarket during the first quarter involved Insulation Fabricators Inc. taking 4, SF within the 6, SF facility located at 32 Sheffield Ave in Hammond. The leader in fabrication and distribution of thermal and acoustical insulation will now use this space as its company headquarters , 19,999 2, 49,999 5, 99,999 1, 199,999 2,+ Looking Forward Conditions have been comparatively flat over the past yearand-a-half in the Northwest Indiana submarket. Companies looking for cost saving solutions continue to be attracted from neighboring Illinois, enticed by the economic advantages and leasing incentives being offered by Northwest Indiana landlords. Conditions are typically slow to change in the submarket, as very large transactions are relatively rare. Northwest Indiana Sale Transactions 1st Qtr 213 Property Address City Size (SF) Sale Price Price PSF Buyer Seller None to report Northwest Indiana Lease Transactions 1st Qtr 213 Property Address City Leased (SF) Tenant Comments 32 Sheffield Ave Hammond 4, Insulation Fabricators New lease st Ave Hobart 39,625 Altitude Volleyball New lease Northwind Pky Hobart 18,271 Rogers Supply Company Lease renewal 141 E 141st St Hammond 14, Security Transport, Inc. New lease Italics denotes NAI Hiffman transaction NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - FIRST QUARTER

40 Industrial Investment Market Review First Quarter 213 Industrial Investment Review The Chicago industrial investment market posted continued improvement in the core/class A space during the first quarter of 213, with cap rate metrics near their pre-recession levels. However, the overall sales volume continues to lag dramatically behind historical levels as capital has become increasingly focused on acquiring core/class A assets. The imbalance between the insatiable demand for core offerings and limited supply offered for sale has led to significant cap rate compression. This phenomenon has also been aided by historically low interest rates, an abundance of debt capital and anticipated rent growth due to the ten consecutive quarters of positive absorption. Surprisingly, the frenzied activity in the core/ class A space has not translated into increased demand for class B product. The most active investors in the past few quarters have been advisors and REITs that are fixated on core product and have all but ignored the rest of the spectrum. The spread between class A and class B pricing has reached historic levels and it is likely that opportunistic capital will partner with local operators to take advantage of the yield opportunities, as has already begun to happen in the suburban office space due to compression in the CBD. Four large investment transactions totaling $73.5 million in sales volume occurred during the first quarter of 213. This total represents a decrease in sales volume quarter-overquarter, when compared to the impressive $425 million of sales recognized during the fourth quarter of 212, as well as a decrease when compared to the same period a year ago, when $241 million of sales volume was recorded during the first quarter of 212. Sale prices averaged $47. PSF in the first quarter, a decline in comparison to $53. PSF during the fourth quarter of 212 and $55. PSF during the first quarter of 212. The largest sales activity of the quarter involved Chicagobased Bridge Development Partners LLC in a joint venture partnership with Dallas-based Hillwood Development Co., in a transaction comprised of Bridge s five most recent industrial real estate projects totaling nearly 9, SF. Bridge s joint venture partnership with Hillwood provided them with another capital source to aid in the execution of an ongoing infill development strategy in Chicago. Also of note was Silverman Group s $21,8, acquisition of the 36, SF of the Liberty Point Corporate Center in Libertyville. The development was built in 28 by a joint venture of McShane and Metlife and had been marketed at the time of completion and subsequently pulled during the deteriorating market. The sale is a rare example of Class A product with upside through lease-up trading. Significant Industrial Investment Sales 1st Qtr 213 Submarket(s) Size (SF) Sale Price Price PSF # Bldgs Buyer Seller Lake County, I-88 Corridor, O Hare, Southwest Cook 91,897 $35,, $39. 5 Hillwood Development Company Bridge Development Partners Lake County 359,91 $21,8, $61. 2 The Silverman Group McShane Development Co Fox Valley* 15, $7,868,594 $52. 1 Welsh Property Trust KTR Capital Partners *Single local building, part of 5-building national portfolio Pictured Above: 251 Laraway Rd, part of the 849,564 SF Laraway Crossings business park being offered by ASB Capital Management/Ryan Companies

41 Period Sales Volume Price PSF Q1 212 $241,59,969 $55. Q2 212 $437,62,282 $55. Q3 212 $235,229,553 $54. Q4 212 $425,356,287 $53. $53. PSF running average Q1 213 $73,468,594 $47. As previously mentioned, aggregate sales volumes have not returned to the peak levels recorded in Several factors are behind this, including a lack of programmatic/entity level transactions that occurred in prior years. Also of note, the most prolific buyers in the past few years have tended to be aggregators who will hold for extended periods as opposed to traditional capital recyclers of years past who created constant turnover within their portfolios. The availability and competitiveness of financing alternatives are also contributing to the sales slowdown, as some potential sellers find better economic alternatives through refinancing. Perhaps the most predictable and visible trend that has weighed down the sales volume numbers recently has been the muted levels of new supply being added since 28. The merchant builder model was one of the largest engines of the Chicago industrial investment market over the last decade. While some speculative development has returned to the Chicago It is hoped that industrial investment sale activity will increase in the latter quarters of 213, with an increased amount of product gradually coming to market in response to the heightened levels of investor demand, particularly in the core/class A sector. A few such projects are already in various stages of marketing, including the 72,62 SF Infill DuPage Class A Industrial Portfolio being offered by James Campbell Company, as well as the 849,564 square foot Laraway Crossings offering from ASB Capital Management/Ryan Companies. Though cap rates for core offerings have returned to pre-recession levels, there remains at least some potential for further cap rate compression given the historically large variance when compared to the 1-Year Treasury Yield. Buyer Types by Sales Volume (212 to Present) 11.3 MM MM Institutional/Advisor Public REIT 43.7 MM MM Fund User MM Private REIT Investor MM Developer 19.9 MM Source: HFF, L.P. market, it pales in comparison to the previous years output. Sales Volume vs. Construction Deliveries $4 Billion Sales Volume 24 Million SF $3 Billion $2 Billion Construction Deliveries 18 Million SF 12 Million SF The Industrial Investment Market Review data has been provided by HFF, L.P. $1 Billion $ Million SF SF Source: HFF/NAI Hiffman HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 21 offi ces nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affi liate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. p.com E Elk Trail in the Carol Strean, one of the two buildings comprising the 72,62 SF Infill DuPage Class A Industrial Portfolio being offered by James Campbell Company NAI HIFFMAN METROPOLITAN CHICAGO INDUSTRIAL MARKET REVIEW - FIRST QUARTER

42 Methodology & Defi nitions Methodology The information included in this review is the result of a compilation and analysis of data from various sources on class A, class B and class C industrial properties 1, SF and larger located in the metropolitan Chicago area defined by the submarket map on the previous page. NAI Hiffman obtained the information from property representatives, CoStar Group, RealCapital Analytics, industry periodicals and magazines, our in-house property database, and other sources. NAI Hiffman greatly appreciates the participation of each of these individuals, companies and resources, without whose help this report would not have been possible. All of the information detailed throughout this report is saved and organized in our own in-house database and is regularly updated. Utilizing this database, we can analyze, calculate and report demographic information, inventory, vacancy, availability, net absorption, and transactional information. Definitions The NAI Hiffman Market Reviews track several measures of market conditions. This information is collected for individual properties then consolidated, organized and analyzed for submarket and market totals. These terms, used throughout the reports, are defined below according to NAIOP Terms & Definitions. Total Inventory (Market Size) The total square footage of gross rentable area in a specific market. It includes the gross rentable area in buildings that have received a certificate of occupancy. Total inventory increases when a new building is delivered and decreases when an existing building is destroyed, demolished or its use changes. Vacancy Rate A measurement expressed as a percentage of the total amount of vacant space divided by the total amount of inventory. Vacant space is inventory that is not currently occupied. Net Absorption The net change in occupied space in a given market between the current measurement period and the last measurement period. Net absorption can be either positive or negative and must include decreases as well as increases in inventory levels. For the purpose of this report, sublease space is included in the calculation of net absorption. 1Q13 NEW SUPPLY The total inventory delivered to the market since the last measurement period. Delivered is defined as total square footage and/or number of buildings that has completed construction and received a certificate of occupancy during a stated period. Under Construction Buildings where either: a) actual ground breaking has occurred (site excavation or foundation work) and construction is ongoing (not abandoned or discontinued) but for which a certificate of occupancy has not yet been issued; or b) properties undergoing conversion to office from another use or c) properties undergoing a major renovation where 75 percent or more of the building is not available for lease and building generally requires a certificate of occupancy to be made available for lease. Available Space The total amount of space that is currently being marketed as available for lease in a given time period. It includes space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date. Available space excludes shadow space. Shadow Space That portion of leased space which is vacant but not available space. Shadow space is difficult to measure. (Synonym: phantom space)

43 Industrial Submarket Map Beloit Westosha Airport Wisconsin Illinois 1 Chicago North Pleasant Prairie 2 Chicago South 3 North Cook Waukegan Regional Airport Fox Lake 76 4 West Cook Zion 41 5 Southwest Cook 83 6 South Cook 14 Waukegan McHenry 23 Grayslake Rockford 7 I-57/Will Corridor 12 8 Lake County Northwest Cook 23 Belvidere Cherry Valley Mundelein O Hare 6 Crystal Lake Lake Forest Vernon Hills 6 11 Central DuPage 45 Lake Zurich I-55 Corridor Buffalo Grove 9 12 Highland Park 13 McHenry County Hampshire Northbrook 9 Dundee Schaumburg South Elgin Streamwood Elk Grove Village 64 Dupage St CharlesAirport 64 Geneva West Chicago Carol Stream Park Sugar Grove Hinsdale Aurora 3 Naperville Downers Grove Woodridge Burr Ridge Montgomery 3 4 Elmhurst Oak Park Westchester Bolingbrook Plainfield Bedford Park 41 Chicago Midway Airport 2 Oak Lawn Palos Heights Blue Island 6 East Chicago Gary/Chicago Airp Hammond Hazel Crest Tinley Park 71 Chicago Willow Springs Romeoville Southeast Wisconsin Cicero La Grange DeKalb County 21 Northwest Indiana 5 38 North Aurora 1 Franklin Park I-8/Joliet Corridor 19 I-39 Corridor 29 Addison Batavia 3 Park Ridge Ohare Int'l Airport 1 Bloomingdale DeKalb 19 Skokie Wood Dale Joliet 3 Munster 1 8 Mokena 41 Matteson New Lenox Minooka La Salle 52 6 Monee Elwood Ottawa Seneca Schererville 3 Park Forest Indiana Illinois ochelle 16 I-88 Corridor Niles Fox Valley 3 Grove Des Plaines 2 14 I-9 Northwest Arlington Heights 72 Elgin 64 Chicago Executive Airport Glencoe

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

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