U P T O / - A C R E S

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1 FOR SALE COMMERCIAL LAND U P T O / - A C R E S 0 Cypress Plaza Drive, Jacksonville, Florida Subject Up to +/- 13 acres remaining from developing site, will subdivide Build to suit for over 30,000 square feet RE # Prime location off Phillips Highway, near I-95 & J Turner Butler (JTB) Zoning: PUD On-site retention Concurrency available Mark Farrell farrell@killasheeinv.com Sina Venus venus@killasheeinv.com CANAL BLVD. SUITE 4, PONTE VEDRA BEACH, FLORIDA Although all information furnished regarding for sale, rental or financing is from sources deemed reliable, such information has not been verified and no express representation is made nor is any to be implied as to the accuracy thereof and is submitted subject to errors, omissions, changes of price, rental or other conditions, prior to assignment, of contract, sale, lease or financing or withdrawal without notice.

2 A B C Roughly 13 acres remaining from retail, office, warehouse development (parcel C) A Under Contract Retail/mixed-use development B Under Construction 85,000 Office/Warehouse Condos Est. Completion 2018 C To Be Cleaned +/- 13 acres total Opportunity for Build to Suit for space larger than 30,000 square feet Although all information furnished regarding for sale, rental or financing is from sources deemed reliable, such information has not been verified and no express representation is made nor is any to be implied as to the accuracy thereof and is submitted subject to errors, omissions, changes of price, rental or other conditions, prior to assignment, of contract, sale, lease or financing or withdrawal without notice.

3 134,517 ADT Although all information furnished regarding for sale, rental or financing is from sources deemed reliable, such information has not been verified and no express representation is made nor is any to be implied as to the accuracy thereof and is submitted subject to errors, omissions, changes of price, rental or other conditions, prior to assignment, of contract, sale, lease or financing or withdrawal without notice.

4 JACKSONVILLE, FL MARKET OVERVIEW Back to business. Jacksonville did not suffer as much damage from Hurricane Irma as did Florida s other major metro areas. It was affected nonetheless, however with some flooding, short-term business closures, particularly on its coast, the temporary closing of the port, and a loss of power in many sections. Clean-up was under way, per the date of this report. While all the data have not been sifted yet, the storm could be a boon to the state s construction sector as damaged properties are repaired. Construction costs, rising in any case, could rise additionally as both materials and labor become more expensive. As a result, new home prices could rise as well. These effects likely would be most pronounced in Central and South Florida, where storm damage was greatest; the full extent of the effects in Jacksonville remains to be seen. The basic trajectory of the local economy, in any case, should not be altered. Its basic profile should not change either. Tucked away in the northeast corner of the state, Jacksonville is not a major tourist destination (although St. Augustine does host a sizable tourism sector). With trade through Jaxport, Jacksonville supports a significant distribution industry and claims a substantial financial sector as well. Indeed, its financial activities segment accounted for 9.4% of total Metropolitan Statistical Area (MSA) non-farm employment as of July, well above the 6.6% calculated for the state of Florida as a whole, according to U.S. Bureau of Labor Statistics (BLS) data. Recent local expansions by Fidelity and Ernst & Young are noteworthy for this sector. Thus, the local economy is relatively diverse. Irma aside, the most dramatic recent news has blown in from Amazon.com. Last year, the firm announced plans for two new fulfillment centers with a combined total of 3.4 million square feet. Both were under construction, per the date of this report (see the Industrial section for details). The two combined are expected to host 2,700 employees, sources have reported. Meanwhile, JaxPort s optimistic plans for massive expansion met with disappointment: a $300 million terminal facility at Dames Point by Asian shipping giant Hanjin was cancelled in And plans for the dredging of the port so that it might capture a share of post-panamax shipping have been delayed over funding issues (see Special Real Estate Factors). Stated Cushman & Wakefield in a recent report as cited by the Journal, Jacksonville s growing importance as a port and conduit to the U.S. market has made it an integral focal point ininternational trade. Some observers regard the deepening of the harbor as a major issue for the local economy.

5 The latest BLS data indicate ongoing strong job growth. Total non-farm employment as of July was up 17,400 jobs (2.6%) from 12 months prior, down from the 24,800-jobs (3.9%) increase indicated for the preceding 12. These monthly estimates, however, are snapshots and may reflect fluctuations within individual industry sectors, which can affect overall growth numbers and rates. Thus, while usually reliable with respect to the current trends, a year-over-year snapshot can also be anomalous from time to time. Along these lines, the June non-farm employment number was up fully 24,800 jobs (3.7%) year-over-year, and other recent 12-month changes also were greater than the latest. It remains to be seen whether job growth in the Jacksonville MSA actually is slowing, as it has been slowing in other Florida metro areas. In any event, the data show positive year-over-year job growth numbers for all major industry sectors. The leader over the latest July-to-July period, adding 4,800 jobs net for a 3.5% gain, was the Trade, Transportation, and Utilities sector. Education and Health Services followed with the net addition of 3,100 jobs for a 3.0% increase. Leisure and Hospitality was next with 2,300 jobs added net growth at 2.8% while Professional and Business Services added 3,000 jobs for a 2.9% gain. The apparent slowdown can be pinned to this sector: employment in Professional and Business Services increased by fully 7,100 jobs June 2016 to June 2017 a 7.1% growth rate. July 2016 to July 2017 saw 3,000 jobs (2.9%) added here. Cutting the other way, the 900 jobs (2.3%) added net to Construction July-to-July were the first 12-month gain recorded for this sector since March. OUTLOOK Whatever disruptions to the functioning of business that resulted from Irma (or fluctuations in BLS data on job growth), the Jacksonville economy should maintain the established favorable growth pattern, as long as national trends allow. The dredging of the port, slow in coming, is seen as a crucial factor in Jacksonville s ability to compete with the busy ports at Savannah and Charleston to attract the large post- Panamax ships. Meanwhile, the long-range effects of Amazon.com s huge investment remain to be seen. Population growth at 1.9% is projected by Moody s Economy.com for 2017, down insignificantly from 2016 s 2.0% gain. These rates are nearly the twice those rates reported for the nation as a whole.

6 JACKSONVILLE WAREHOUSE MARKET OVERVIEW