NAI Earle Furman, LLC 1st Quarter 2011 Newsletter

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1 NAI Earle Furman, LLC 1st Quarter 2011 Newsletter CELEBRATING 25 YEARS BY: EARLE FURMAN, SIOR - President and broker in charge I cannot believe that we are celebrating our 25th anniversary this year. I wish I could say that I had it planned all along, but you know that would be a gross misstatement. At first, while concentrating on mostly old buildings, I would say that anyone seeing our For Sale sign was either lost or in the wrong part of town. Our growth since 1986 can be attributed to you, our clients and customers and for that I want to say a very heartfelt thank you. I ve also had the good fortune to be associated with some really incredible men and women who love what they do and do it well. As of now, I have six partners whose contributions have been huge both in leadership and support. We have a team of fifty people today which is organized in industrial, retail, office, recreational land & timber, investment and multifamily divisions. We do this so that we can continue raising the bar to serve you even better. Thank you again for your trust and support. It is truly appreciated.

2 4 th Quarter Market Reports Now Available! NAI Earle Furman has released its year-end 2010 market reports for the Upstate of South Carolina. To download complete reports visit Industrial Sector - Industrial Broker, Grice Hunt commented, As 2011 begins, the Industrial market in the Upstate of South Carolina has seen two consecutive quarters of positive absorption showing signs of a recovering industrial market. Even though vacancy has decreased, tenants are still able to seek aggressive lease terms among competing buildings. As recession fears wane, pent-up demand helps push vacancy numbers down as prospect confidence continues to improve. New construction activity continues to remain sparse as vacancy still allows both tenants and purchasers a wide variety of available options. One new project broke ground in fourth quarter, a 50,000 SF facility in the Pickens area. Investment activity has slowly begun to increase as tenants are becoming more confident and showing positive signs of growth or longer lease commitments. However, acquisition criteria have drastically changed over the past 24 months, and while financing is beginning to loosen, it can still prove to be a significant hurdle in closing deals. Some investment groups are still taking advantage of opportunities created by the financing crisis by chasing bank owned properties and distressed assets as a means to either expand or break into the Upstate market appears to be the first opportunity the market has had to recover. Expectations are that market conditions will begin to stabilize and regain some normalcy over the course of the year, Hunt continued. Retail Sector - Retail Broker Jake Van Gieson commented, As 2010 comes to a close, the retail sector has seen some positive changes. We are seeing rental rates slowly creep up and vacancy is staying relatively flat. Landlords are still very aggressive to make deals on the leasing side. Although rental rates are slightly increasing, tenants are negotiating longer free-rent periods. There is still very little ground up construction in the Upstate, although we are seeing a few rehabs and renovations. Contrary to 2009, we are seeing an increase in national tenants expanding to our market. There has been a big push from some major gas chains, as well as fast food operators. On the investment side cap rates are still much higher than a few years ago. Most investors are all cash buyers looking for bank foreclosures or single tenant deals with long term leases. Thus, the amount of retail sales are much lower than years prior. With the increase in rental rates and the number of tenants expanding, 2011 looks to be a promising year for the retail sector. Office Sector - Office Broker David Feild commented, Although the Upstate office market continues to struggle with vacancy and subdued tenant demand, we have enjoyed a trend of lower vacancy rates and positive net absorption over the past three consecutive quarters. Despite the slight decrease in fourth quarter rental rates, we are hopeful that our lease market has found stabilization and that with the new year will come a renewed focus from tenants on making real estate transactions that were put off in Although improving, financing still proves to be a challenge in sales transactions. Owner occupied deals are being completed with credit buyers, but speculative deals still don t exist if financing is necessary. Sales of developed pad sites continue to struggle, but we see this market improving sooner than raw land. Within the Greenville CBD submarket a notable sale transaction was 105 N. Spring Street. It is an approximately 30,000 SF building that will become home to Human Technologies, Inc. once the US Attorneys office completes its transition out of the building and into their new space. Elmore & Wall, P.A. has made a move to lease space at One Liberty Square, also in Greenville s CBD. Although few notable sale transactions occurred in the suburbs, there were more lease transactions than the prior quarter. Continued lower vacancy rates and positive net absorption coupled with few new construction projects in fourth quarter give us optimism as 2011 begins, Feild continued.

3 Industrial Division News JUST LISTED - 40 tyger RIVER ROAD GREENVILLE, SC Property Details: ±117,000 SF Available New Pre-Cast Concrete Construction 21-9 x 10 Dock High Doors 1-12 x 14 Drive in Door ESFR Sprinkler 30 Clear 50 x 50 Column Spacing 60 at Docks Less than 1 mile to I-85 Dimensions 260 x 850 Lease Rate: $3.25/SF/NNN JUST LISTED J. Verne smith parkway, greer sc Property Details: ±12,000 SF ±8,148 SF Warehouse ±3,852 SF Office 1 Dock High Door (8x10) 14 Clear Height at the Eaves 17 6 Clear Height at Center Sale Price: $550,000 Lease Rate: $5,500/mo. (Including Base Year Taxes and Insurance) Contact Information: Ford Borders, SIOR & Grice Hunt tel: fborders@naiearlefurman.com or grice@naiearlefurman.com Contact Information: Hunter Garrett, CCIM, SIOR tel: hgarrett@naiearlefurman.com recent transactions Piedmont, South Carolina: Glenn Batson of NAI Earle Furman, LLC represented the landlord in leasing a 7,000 SF industrial property located at 112 Leader Drive in Piedmont. The space was leased to Tramrail Material Handling. Greenville, South Carolina: Grice Hunt and Ford Borders of NAI Earle Furman represented Hollingsworth Capital Partners, LLC in renewing Louis Dreyfus Corporation s lease located in The SC Technology and Aviation Center at 120 Orion Street. The company will continue to occupy the 625,636 SF building. Greenville, South Carolina: Glenn Batson of NAI Earle Furman, LLC represented the owner of 2701 White Horse Road in selling the 12,600 SF industrial property to CES Holdings, Inc. Greenwood, South Carolina: Jon A. Good, SIOR and Tyson Smoak of NAI Earle Furman, LLC represented The Palmetto Bank in selling two industrial buildings located at 1421 Calhoun Road in Greenwood. The 9,890 SF industrial properties were sold to Hi Performance Auto Sales.

4 Office Group Division News JUST LISTED! THE FIELD HOUSE AT WEST END 935 S. main STREET, GREENVILLE SC Property Details: For Sublease +/- 15,020 Rentable Square Feet (Entire 3rd Floor) +/-13,061 SF usable (15% Core Charge) Base term: 120 Months Commencement date/expiration date: November 1, 2007 October 31, 2017 approximately 7 years remaining Includes the use of 50 parking spaces adjacent to the building. Fully furnished office space: ready to occupy Three (3) year old build out, however, occupied for only 12 months. everything within the space is in brand new condition Contact John D. Gray, CCIM for Leasing Rates & Availability tel: johng@naiearlefurman.com 6 Arborland way - greenville Property Details: ±4,300 SF two story office building Zoned POD Updated interior Easy access to Haywood & Pelham Road ±26 available parking spaces Sale Price - $535,000 Lease Rate: $11.50/SF NNN Contact Information: Scott Jones, SIOR and Keith Jones tel: sjones@naiearlefurman.com or keith@naiearlefurman.com recent transactions Greenville, South Carolina: Scott Jones, SIOR of NAI Earle Furman, LLC assisted in the sale of a 2,800 SF freestanding office building located at 142 Milestone Way in Greenville. The building was purchased by Lower Waverly, LLC. Greenville, South Carolina: Stuart Wyeth, Bill Sims and Jake Van Gieson of NAI Earle Furman, LLC represented the landlord of 221 Pelham Road in leasing the 12,000 SF second floor space to Ogletree, Deakins, Nash, Smoak & Stewart, P.C. Greenville, South Carolina: Keith Jones of NAI Earle Furman, LLC represented the landlord of Poinsett Plaza office building in downtown Greenville in leasing office space to Congressman Trey Gowdy.

5 Retail Division News NAI Earle Furman Brokers 8,400 SF RESTAURANT SPACE John Gray, CCIM of NAI Earle Furman, LLC recently represented the landlord of 15 Market Point Drive in leasing the 8,400 square foot restaurant space to J. Peters Grill and Bar. The space was formerly home to Azia restaurant. J. Peters currently has two locations in Anderson and this will mark their first Greenville venture. The other locations are in downtown Anderson and Clemson Highway at I-85. The menu features a variety of appetizers, entrée salads and sandwiches, steaks, pasta dishes, chicken and seafood. Owner, Jonathan Peter Angell and his team opened for business on February 15th. Newly listed shopping centers - space available for lease Cherrydale Point - North Pleasantburg Drive, Greenville SC ±297,928 SF Shopping Center Available Suites: Suite 46 ±1,200 SF $19.25/SF Suite 58 ±1,700 SF $17.00/SF Suite 86 ±4,200 SF $ 9.00/SF Suite 92 ±1,400 SF $12.00/SF Suite 104 ±4,000 SF $12.00/SF CAM: $3.05 Pylon Signage Poinsett Hwy - 31,000 VPD N. Pleasantburg Dr. - 32,400 VPD The Gallery Property Details - Haywood Road, Greenville ±148,532 SF Shopping Center What I have learned over the years is that you don t have to sacrifice quality to provide a good value. The portions are huge, and the quality of food is phenomenal, Angell commented. recent TRANSACTIONS Available Suites: Suite 5 ±1,440 SF $12.00/SF Suite 11 ±1,600 SF $10.00/SF Suite 18 ±2,000 SF $10.00/SF Suite 28 ±2,000 SF $10.00/SF ±51,268 SF $5.00/SF CAM: $2.74 Pylon signage Traffic count 26,400 VPD Close proximity to I-385 Abundant parking Located across from the highest grossing mall in SC Contact Information for Both Centers: Bill Sims and Jake Van Gieson tel: bsims@naiearlefurman.com or jakev@naiearlefurman.com Simpsonville, South Carolina: Renee Dunlap of NAI Earle Furman, LLC represented the landlord of Five Forks Promenade in leasing retail space to Weight Watchers North America. Five Forks Promenade is located at 2531 Woodruff Road in Simpsonville. Other businesses at the center include: Verizon Wireless, State Farm and Joy of Tokyo. Greenville, South Carolina: W. Scott Jones, SIOR of NAI Earle Furman, LLC represented Auto Spa Express in selling 1405 Woodruff Road. The site, 0.75 acres in size, sold for $580, Greenville, South Carolina: Renee Dunlap, Ted Lyerly, CCIM and Jimmy Wright of NAI Earle Furman, LLC represented the landlord of the newly renovated Augusta Village shopping center on Augusta Street in leasing a 2,797 SF retail space to Wisteria Salon and Spa. This marks the second Greenville location for Wisteria who currently has another salon on Woodruff Road.

6 Investment Division News IDEAL 1031 EXCHANGE - NNN Arizona Steakhouse 3952 Grandview Drive (Fairview Road/I-385) - Simpsonville, sc Property Details: Arizona Steakhouse Original 15-Year NNN Lease (6 Years Remain) 2-Five Year Options (Escalations in Initial Term and Options) Wal-Mart & Lowe s Outparcel Rent Bumps 4% every Three Years Income: $150,000 (1%) Reserve: ($1,440) NOI: $148,560 Sales Price: $1,677,176 Cap Rate: 8.86% Contact Peter Couchell, CCIM for Further Information: or couchell@naiearlefurman.com NAI Earle Furman Brokers Two Retail Investment Transactions Peter Couchell, CCIM of NAI Earle Furman, LLC represented the buyer in purchasing a 9,014 SF retail investment, Dollar General, located in Columbia, South Carolina. The property was purchased by an investor for $1,081,000. Couchell also represented a New York-based corporation in acquiring a 3,545 SF retail investment, AT&T, located in Mooresville, North Carolina. The property was purchased for $1,985, % occupied investment property for sale Pleasantburg Plaza & 415 North Pleasantburg Drive, Greenville SC Property Details ±12,286 SF Retail Center + ±2,000 SF Warehouse Property also includes Billboard 100% Occupied Easy Access - Just off I-385 Across from Carolina First Center & Downtown Airport Strong Tenant Mix High Traffic Count: 29,200 VPD High Density Population Current NOI: $166,416 Current Cap Rate: 9.27% Sales Price: $1,795,000 Contact Information: Peter Couchell, CCIM tel: couchell@naiearlefurman.com

7 2010 Top Producers of the Year NAI Earle Furman, LLC congratulates its 2010 Capital Club members. The Capital Club recognizes NAI Earle Furman brokers that have excelled in their field of specialty and have achieved high levels of production. The company held an awards banquet at the Brown Street Club in January where principals Jon Good, SIOR and Hunter Garrett, CCIM, SIOR announced the winners. David Feild & Jon Good Peter Couchell, CCIM was named Top Producer of the Year and reached the Capital Club Silver Level. Couchell is a principal with the firm and specializes in office and investment properties. Earle Furman, SIOR and Jon Good, SIOR both principals with the firm and industrial brokers, also reached the Silver Level of production. Good and Furman were also recognized for the largest transaction of the year. The largest office transaction was awarded to David Feild, CCIM and Jimmy Wright. Feild was also recently recognized by the Greater Greenville Association of Realtors as the 2010 Commercial Realtor of the Year. Anderson retail broker Tim Roller was awarded the largest retail transaction of the year. Office broker Stuart Wyeth completed the most transactions at the firm during Tim Roller & Hunter Garrett Jon Good & Earle Furman Earle Furman, Peter Couchell & Jon Good Hunter Garrett & Stuart Wyeth

8 Company News & Community Involvement nai EARLE FURMAN AND JASON RICHARDS RECOGNIZED AT NAI GLOBAL CONVENTION in Las vegas NAI Earle Furman was recognized by NAI Global with its Eagle Award for performance in The Eagle Award recognizes the NAI member firm that best exemplifies strong leadership, capital and resources, commitment to quality, the desire and energy to grow, and shares the NAI Global vision for excellence in commercial real estate services. Vice President of Operations Jason Richards was also recognized by NAI Global with its Chairman s Award for performance in The Chairman s Award recognizes the NAI Business Director who best exemplifies effective management of an NAI office, including leadership, business generation, service delivery, participation in enterprise initiatives and integration of NAI tools and resources throughout the firm. The award was presented in a ceremony on February 9 at the NAI Global 2011 Convention in Las Vegas. Based in Princeton, New Jersey, NAI Global manages a network of 5,000 professionals and 350 offices in 55 countries. NAI professionals complete over $45 billion in transactions annually. NAI Global President Jeff Finn (left) pictured above with Jason Richards. In April, the NAI Earle Furman team will participate in the 2011 Dragon Boat Upstate Festival. The Dragon Boat Upstate Festival, now in its fifth year, is a Saturday celebration dedicated to raising a quarter of a million dollars for the Cancer Center of Greenville Hospital System University Medical Center (GHS) and other local cancer non-profit organizations through the racing of beautiful Dragon Boats at Portman Marina on Lake Hartwell. Dragon Boat Upstate Festival blends the best of both worlds, said Geralynn Trellue, special events coordinator for the GHS Office of Philanthropy and Partnership. You spend the day on the lake with friends and family, and you re directly affecting the battle against cancer. To learn more about the Dragon Boat Festival or to make a donation to the NAI Earle Furman team please click here

9 As Featured in GSA Business February 2011

10 About About Us Us Founded by J. Earle Furman in 1986, NAI Earle Furman, LLC has become a leading full service commercial real estate brokerage firm in the Upstate of South Carolina specializing in the office, industrial, investment and retail sectors. NAI Earle Furman, LLC offers a wide range of services through brokerage and property management groups. A partnership with NAI Global allows NAI Earle Furman, LLC to access a network of worldwide real estate connections and offer international commercial real estate services to Upstate clients, while retaining local personality and knowledge. The firm has 50 employees and in the past three years the firm has completed an average of 340 transactions per year. The property management team has grown exponentially in recent years and manages over 5 million square feet of commercial space in North and South Carolina. Brokerage Services Tenant Representation Landlord Representation Market Analysis Site Selection Lease Versus Own Analysis Due Diligence Consulting Lease Review and Renewal Services Tax Deferred Exchanges Development Land Acquisition and Disposition Property Management services Formal property inspections each month with a copy of the inspection report included in the monthly report Face-to-face monthly meetings with each tenant to identify and address tenant needs Fast and effective response to tenant needs, repairs and maintenance requests Continual evaluation of vendor contracts and services to insure the best results and fair pricing Thorough review of all operational invoices prior to payment Annual budget submission with periodic reports which provide monthly and year-to-date tracking of operational expenses After-hour emergency response to urgent problems In-house maintenance services with a team of technicians that is second to none as it relates to customer service, skilled maintenance care, fair pricing and trust Sta y Co n ne c te d Fi n d Us, Fr i e n d Us, Fo l l o w Us join our list! Visit the home page of naiearlefurman.com and click opportunity mailing list to receive investment opportunities and quarterly market reports. 101 East Washington Street Suite 400 Greenville, South Carolina tel fax