Chicago Industrial. Submarket Report

Transcription

1 Chicago Industrial Report 2Q 217

2 In today s world we are seeing yet another shift in the way we go about our day to day lives, and these changes have begun to permeate into our industry. The end result is a new way of thinking a new way of doing business. The human element, so central to most everything, even a decade ago is being challenged by efficiency and innovation. The delivery of most goods once required the human touch. The milkman would bring your milk and eggs; the kid down the block would deliver your morning news. But no longer. There s an app for that. We now live in a world where last-mile solutions will soon range from the delivery drone to self-driving shipping trucks. The industry s focal transition to e-commerce and facilitating an omni-channel customer experience has allowed the market to thrive in recent years, bringing with it record. There is still much to be said, however, for first-hand, local market knowledge. Our research for the second quarter of 217 shows that the Chicago industrial market remains vital and robust. We hope these statistics and the related observations provide you with valuable insights for the decisions and opportunities which lie ahead for both you and your stakeholders. All the best, John Picchiotti Managing Director

3 Table of Contents Introduction note...2 Chicago Metro...4 Fox Valley...6 I-39 Corridor...8 I-55 Corridor...1 I-57 Corridor...12 I-8 Corridor...14 I-88 Corridor...16 Lake County...18 McHenry County...2 North Chicago...22 North Cook County...24 North DuPage...26 North Kane County...28 Northwest Cook County...3 Northwest Indiana...32 O Hare...34 Rockford...36 South Chicago...38 South Suburbs...4 Southeast Wisconsin...42 West Cook County...44 Industrial Statistics...46 Dashboard...48

4 Chicago Industrial Report Chicago Metro Chicago Metro 9 Southwest Wisconsin Walworth 39 Southeast Wisconsin Big box occupier demand was once again limited, as the largest new lease signed during the quarter was in the I-8 market where an e-commerce company took possession on 438, square feet from Ridgeland Property Group in a J.V. with Cabot Properties, Inc. at Enterprise Blvd, Crest Hill. Despite this, leasing activity for second quarter was slightly ahead of the first quarter volume of 7,59,755 square feet, measuring 7,622, 642 square feet. This was due to a higher number of transactions signed during the quarter 139 new leases signed in the second quarter, up from 124 in the previous quarter. 9 Rockford inventory 1,149,4,946 (%) 7.2% (%) 8.7% net 2,838,66 net 7,69,458 Average rental rate ($ psf) $ mo. dollar change $.1 McHenry North Kane 39 North Chicago Fox Valley 88 North Dupage West Cook South Chicago I-88 Corridor 294 I-55 Corridor 355 South Suburbs Asking average net rents were down slightly from the first quarter mark of $4.83 per square foot to $4.79 per square foot net. Rents have hovered around $4.8 per square foot net for the past six quarters. 55 I-8 West Northwest Indiana 57 8 I-8 Corridor On the user side, there were several large sale transactions that were completed during the second quarter, with the largest occurring in Schaumburg. Prologis was able to secure Elkay Plastics in the purchase of a 34,8-square-foot, highly functional Class B distribution building at1365 Mitchell Boulevard. The building sold for $14.3 million, a healthy $47 per square foot. Additionally, Digital Realty Trust, Inc. expanded its footprint in the West Cook County market by acquiring a 274,33-square-foot warehouse/distribution facility from Edsal. The data center solutions provider will demolish the building to expand their campus. This is a user segment that continues to acquire industrial product in infill locations, redeveloping them into cloud computing operations. North Cook Northwest Cook 9 O Hare I-39 / Dekalb Although there was just one large new lease signed this quarter, three sizeable renewals were negotiated. Hillwood has retained M Block & Sons as a tenant in 915,643 square feet at 1881 Oak Park Avenue in Tinley Park; Kimberly Clark extended early for 716,378 square feet at Normantown Road, Romeoville; a facility owned by Heitman and Clearwater Paper Corporation will remain in 624,37 square feet at W. Mississippi Avenue, Elwood which is owned by CenterPoint Properties. Cap rates continue to compress in Class A product. This quarter, Industrial Property Trust purchased a 265,58-square-foot Class A asset from American Realty Advisors at 18 Meadow Road, Addison for $88. per square foot, which equated to a 4.8 percent. Two multi-state portfolios were sold this quarter, as well. Blackstone acquired a 55-building, predominately Class B portfolio, totaling 6. million square feet, from High Street Realty Company, LLC for $42,136,/$67.33 per square foot 17 buildings were in Chicago and TA Associates decided to sell a 45-building, national Class A portfolio, totaling 8.6 million square feet, to Brookfield Asset Management, Inc. for $854,5,/$99.36 per square foot 12 of those assets were in Chicago with an allocated price of $75.4 per square foot with an associated cap rate of 5.4 percent. Lake County I-57 Corridor Capital appetite to fund industrial speculative projects remains strong. This quarter, 15 new speculative developments commenced totaling 4,329,62 square feet, a dramatic jump from the 7 projects measuring 1,386,596 square feet started last quarter. The largest project started was by The Opus Group, which received funding from AEW and commenced on a 1,22,14-square-foot bulk warehouse/distribution facility at the Rock Creek Logistics Center on Channahon Road in Joliet. This is the second 1. million-square-foot speculative facility to break ground in the past 12 months. Net New, Net Absorption, Vacancy Local Distribution 3rd Party Logistics Consumer Products Statistics inventory total net Average direct asking rent Warehouse & distribution 613,7,78 8.% 9.6% 4,685,43 8,76,386 $ ,544,3 9,364,54 533,18,81 6.2% 7.5% -1,861,537-1,41,628 $ ,244 92,766 Special Purpose s 6 Food 2,322, % 8.7% 14,2 25,7 $. 11,5 1,149,4, % 8.6% 2,838,66 7,69,458 $ ,158,274 1,278,32 7

5 Chicago Industrial Report Fox Valley Fox Valley Gilberts Carpentersville West Dundee Burlington 2 Elgin inventory 36,235,388 (%) 7.5% (%) 1.2% net -276,165 net -27,238 Average rental rate (nnn) $ mo. dollar change $.23 Net New, Net Absorbtion, Vacancy Two sizeable new leases were consummated this quarter, as Innocor/ Sleep Innovation took 18, square feet from Prologis at 1717 Harvester Road, West Chicago and Wedi Corporation leased 11,816 square feet from Exeter Property Group at 116 Pierson Drive in Batavia. This drove second quarter leasing volume to 32,865 square feet, a dramatic improvement from the 168,538 square feet leased last quarter. Despite heightened leasing volume, the second quarter rate grew to 7.53 percent, up 76 basis points from the prior quarter s level. Five vacancies in West Chicago captured 7 percent of the 452,2 square feet that were returned to the market, outpacing leasing activity. Asking average net rents jumped to $4.47 per square foot, up ten cents from the prior quarter. The increase was better still compared to one year ago which were at $4.25 per square foot net. Maple Park Elburn 88 Kaneville Saint Charles South Elgin Bartlett Batavia Geneva 59 Carol Stream West Chicago All Fox Valley user sales occurred in the first quarter, totaling 14, square feet. Investment sales reported a similar fate, as six of the seven investment sales were produced in the first quarter. The lone second quarter sale was by Venture One Real Estate, which acquired a 299,176-square-foot asset at 315 Kirk Road, Saint Charles from Farallon Capital. The manufacturing facility traded hands for $42.12 per square foot, which equates to a 9.8 capitalization rate. The building has been occupied by Pactiv under a long-term lease. North Aurora 88 Recent s Comparables (sorted by square feet) The Fox Valley market has experienced a decent amount of activity for the third consecutive year, after posting no industrial projects since 211. Better still, the Fox Valley market boasts the first speculative project underway since 29. H S A Commercial is nearing completion on a 137,5-square-foot warehouse/distribution facility at Douglas Road, Batavia. Additionally, Midwest Industrial Funds has drawn up plans for a 99,69-square-foot distribution facility down the block at 91 Douglas Road. Buyer Seller Location City Size Date Price PSF Venture One Real Estate Farallon Capital 315 Kirk Rd Saint Charles 299,176 5/217 $42.12 Recent Comparables (sorted by square feet) Tenant Type Location City Size Innocor/Sleep Innovation New 1717 Harvester Rd West Chicago 18, Honeywell Renewal 3825 Ohio Ave Saint Charles 111,36 Wedi Corporation New 116 Pierson Dr Batavia 11,816 Statistics Service Food Packaging inventory total net Average direct asking rent Warehouse & distribution 18,357, % 12.% -199,434-24,599 $ ,5 38,9 17,877, % 8.1% -76,731-2,639 $5.17 Special Purpose.%.% $. s 36,235, % 1.2% -276,165-27,238 $ ,5 38,9 8 9

6 Chicago Industrial Report I-39 Corridor I-39 Corridor Winnebago Rockford Cherry Valley Belvidere Belvidere 9 Marengo inventory 32,895,558 (%) 5.% (%) 6.2% net -41,52 net 61,44 Average rental rate (nnn) $ mo. dollar change -$.33 Net New, Net Absorbtion, Vacancy After posting 137,71 square feet leased in the second half of 216, there were no notable leases signed in the first six months of 217. Unfortunately, this was the same outcome as the first half of 216. The I-39 rate was negatively impacted by no leasing activity, rising twelve basis points from the first quarter market to 4.95 percent, yet significantly below the Chicago metropolitan area rate of 7.16 percent. Warehouse/distribution space of 896,882 square feet accounts for over 4 percent of all vacancies in the I-39 market. Over half of this vacant supply belongs to one Class A facility at 1211 Fairway Drive in DeKalb, totaling 41,4 square feet. Excitingly, there is strong interest in the space. There were two user-sale transactions recorded in the first half of 217, totaling 14, square feet, which all occurred in the first quarter. The most notable was completed by Star of Rock Millwork, which purchased a 13,-square-foot manufacturing plant at 151 Washington St, Mendota. The building sold for $3,. Investment activity is slower in the I-39 market due to the limited amount of investment grade properties available. With that being said, there have been no trades reported so far this year. The I-39 market witnessed no new industrial deliveries this quarter. The last project completed was in the third quarter of 216 when 3M moved into its 978,12-square-foot build-to-suit lease at 165 Macom Drive, DeKalb. The last speculative project to land in the I-39 market was in 28 when a 2,696-square-foot warehouse was built at 171 Afton Road, Sycamore. Dixon Byron 3 Local Distribution Consumer Products Food 39 Rochelle Earlville Sycamore DeKalb Genoa Burlington Maple Park Kaneville Sandwich Recent s Comparables (sorted by square feet) Buyer Seller Location City Size Date Price PSF Star of Rock Millwork Undisclosed 151 Washington St Mendota 13, 1/217 $2.31 Weiss Fork Lift Undisclosed 367 Cougar Dr Peru 1, 2/217 $55. Statistics inventory total net Average direct asking rent Warehouse & distribution 14,694,619 4.% 6.8% -15,5 $ ,166, % 5.8% -41,52 76,94 $2.82 Special Purpose 34,45.%.% $. s 32,895,558 5.% 6.2% -41,52 61,44 $3.2

7 Chicago Industrial Report I-55 Corridor I-55 Corridor inventory 84,237,443 (%) 9.1% (%) 12.% net 56,83 net 821,158 Average rental rate ($ psf) $ mo. dollar change -$.56 Net New, Net Absorption, Vacancy Year-to-date net in the I-55 Corridor currently stands at 821,158 square feet. Vacancy is currently hovering at 9.7 percent; however, just over 12 percent of the inventory is being marketed as available. The largest lease of the second quarter in I-55 was Kimberly- Clark s renewal with Heitman for 716, square feet at Normantown Road, Romeoville. The property is operated by DSC Logistics, and is immediately adjacent to the Weber Road interchange and visible to the I-55 Expressway. This was the second largest transaction of the market in the second quarter. The Central American Group, a 3PL committed to a short-term renewal with Pritzker Realty Group for 387, square feet of Class B space at 555 Saint James Gate in Bolingbrook. Liberty Property Trust secured Samsung to a 352,-square-foot lease at 15 E. Crossroads Parkway, which is a good sign for the market, as the company continues to grow driven by consumer spending. This is the electronic consumer goods company s second location in the market. Upon completion of the 615,-square-foot build-to-suit for Best Buy at 15 Remington Boulevard in Bolingbrook, Northern Builders sold the property to TA Realty for $9 per square foot. As part of a $42 milliondollar, 55-building, national portfolio transaction, Blackstone acquired four buildings in the I-55 market from High Street Realty Company LLC, which are fully leased: 175, square feet at 34 Remington Boulevard, 79, square feet at 655 Remington Boulevard, 69, square feet at 1287 Naperville Drive and 55, square feet at 636 Schwab Circle. Sandwich 3 Sugar Grove Aurora Montgomery Yorkville 52 Oswego Plainfield Bolingbrook 55 Naperville 8 Lisle Romeoville Joliet 355 Bolingbrook 355 Lockport Woodridge Burr Ridge New Lenox Orland Park 6 With a robust speculative pipeline and limited preleasing activity in advance of, leverage is shifting in the favor of tenants. While the demand pool is relatively healthy, developers and investors with existing Class A assets are becoming more competitive to win tenants. At the midpoint of the year, over 8, square feet of new product has delivered, although larger land parcels for industrial development are growing harder to find. There are only a few true big box parcels in I-55 that are development ready, which include Pizutti s 78-acre site at the Pinnacle Business Park, Romeoville, just north of the Lewis Airport and Northern Builders, which controls an approximately 75-acre site (phase II of the Mary Kelly Farm) in Bolingbrook. Recent s Comparables (sorted by square feet) Buyer Seller Location City Size Date Price PSF TA Realty Northern Builders, Inc. 15 Remington Blvd Romeoville 615, 5/217 $9.2 Blackstone High Street 34 Remington Blvd Bolingbrook 173,865 4/217 $95.28 Blackstone High Street 655 Remington Blvd Burr Ridge 79,194 4/217 $95.28 Blackstone High Street 1287 Naperville Dr Romeoville 69, 4/217 $95.28 Recent Comparables (sorted by square feet) Tenant Type Location City Size Kimberly-Clark Renewal Normantown Rd Romeoville 716,378 Central American Group Renewal 555 Saint James Gate Bolingbrook 386,998 Samsung New 15 E. Crossroads Pkwy Bolingbrook 352,338 Distribution 2, Inc. Renewal W. Crossroads Pkwy Romeoville 235,75 Local Distribution 3rd Party Logistics Consumer Products Food E-Commerce Statistics inventory Quarterly Q4 total net total net Average direct asking rent Warehouse & distribution 71,938, % 12.% 319,4 1,224,273 $4.51 2,187, ,546 12,245,22 7.% 9.3% -277, ,315 $ ,25 Special Purpose 54,2.%.% 14,2 14,2 $. s 84,237, % 11.6% 56,83 821,158 $4.62 2,25, ,

8 Chicago Industrial Report I-57 Corridor I-57 Corridor 8 Joliet 3 Matteson University Park Sauk Village Schererville inventory 3,997,294 (%) 5.9% (%) 8.9% net 387,396 net 499,896 Average rental rate ($ psf) $ mo. dollar change -$.46 Net New, Net Absorption, Vacancy Despite no new leases signed during the quarter, the I-57 rate fell slightly from the first quarter rate of 5.96 percent to 5.91 percent. In comparison, one lease was reported last quarter totaling 4, square feet. Second quarter asking net rents measured $3.36 per square foot, down seven cents from the first quarter mark of $3.43 per square foot net. Limited demand continues to drive down rents which have been falling steadily since one year ago when they reached $3.81 per square foot net. CSX has held conversations with the town of Crete to open up a new intermodal yard. This new terminal will definitely be a game changer for bringing future industrial developments to the area. Channahon 55 Elwood Wilmington Monee 57 Peotone Manteno Lowell Although the I-57 industrial base is smaller than most Chicago area markets, it still draws investor interest. This quarter, one significant bulk warehouse/ distribution facility was sold. Venture One Real Estate sold a Class A facility totaling 728,44 square feet at 2585 S. Ridgeland Ave. in Monee, IL to Ares Commercial Real Estate Management for $46.43 per square foot, reflecting a cap rate of 7.18 percent. The building is occupied by Reviva Logistics, which is warehousing product for Hankook Tire. This represented the largest singleasset trade this quarter for the Chicago metropolitan area. One build-to-suit project was completed by Principle Construction Corporation this quarter for Budreck Truck Lines, which took possession on a 46,5-squarefoot truck repair facility at 2446 Joseph Dr., Monee. Next quarter, we expect 1.9 million square feet to be delivered through Georgia Pacific (1. million square feet) and Amazon (856, square feet). This will have a significant, positive influence on the third-quarter net figure. Kankakee Regional Distribution Packaging 3rd Party Logistics Food E-Commerce Recent s Comparables (sorted by square feet) Buyer Seller Location City Size Date Price PSF Ares Commercial Real Estate Management Fairmount Venture Partners, LLC Venture One Real Estate 2585 S. Ridgeland Ave Monee 728,44 5/217 $46.43 The Capital Companies, LLC 1329 Commerce Dr. Crete 41,25 4/217 $48.48 Statistics inventory total net Average direct asking rent Warehouse & distribution 21,81,975 7.% 11.4% 376,5 374,636 $3.36 1,857, ,5 9,639,414 2.% 2.% 11, ,26 $. Special Purpose 275, % 55.3% $. s 3,997, % 8.9% 387, ,896 $3.36 1,857, ,

9 Chicago Industrial Report I-8 Corridor inventory 81,677,731 (%) 5.4% (%) 6.7% net 1,463,665 net 3,876,281 Average rental rate ($ psf) $ mo. dollar change -$.59 Net New, Net Absorption, Vacancy The rate in the I-8 Corridor is currently 5.42 percent, which stands significantly below the overall market average of 7.2 percent. The Chicago market s largest deal of the second quarter was posted in I-8, which is typically the case as this is the region s premier bulk distribution market. 3PL M Block & Sons renewed 915, square feet with Hillwood Properties on Oak Park Avenue right off the I-8 Expressway in Tinley Park. In Elwood, Clearwater Paper agreed to a 624,37-square-foot renewal for a rail-served building in the CenterPoint Intermodal. Clearwater also signed a new lease for 236, square feet of space that was constructed by CenterPoint Properties as a building addition at S. Walton Drive, Elwood, just a few doors down from their existing facility. Rental rates currently stand at $3.75 per square foot net which is a slight decrease from the first quarter of $3.87 per square foot net. In Lockport, Duke Realty acquired two fully leased buildings on John Lane Crossing along the I-355 Veterans Tollway from Panattoni Company, totaling just over 52, square feet. UPS is the sole tenant in one building and the neighboring property is multi-tenanted. The sale price was $88 per square foot and, as part of the agreement, Duke will close up on completion of a third speculative building in the park, which is currently being built. No other industrial trades over one million dollars were recorded in the I-8 Corridor this quarter. I-8 Corridor Marseilles Sandwich Seneca 6 Montgomery Yorkville Plainfield 52 Minooka Channahon Morris 55 Bolingbrook 55 8 Elwood Wilmington Romeoville Joliet 355 Woodridge Lockport Orland Park 6 New Lenox The I-8 market year-to-date net reached 3.9 million square feet, which is the greatest figure in the metro market. This is driven by some large move-ins this year, such as Mars/Wrigley for 1.3 million square feet. Another 318, square feet of positive net was posted by Clarion Partners this quarter, which leased up their spec building in the Heartland Commerce Center to Shorewood Liquidators and Expedient. In Wilmington, Elion Partners is making progress toward a November completion on a 1.5 million-square-foot build-to-suit for a Fortune 5 food company. The walls are up, and floors are currently being poured for the market s largest current project. In Channahon, IDI Gazeley completed a 75,-square-foot speculative building, but has competition from two other large big box projects near the nation s largest inland port. On Laraway Road in Joliet, Exel Logistics and Core5 are on track for an August completion of one million square feet, and just south of the Joliet Speedway, Hillwood has wrapped up a 993,-square-foot distribution building. On the smaller end of the spectrum, IDI Gazeley also has a speculative building going up on what was formerly a secured trailer yard in the Rock Run Business Park in Joliet. Rock Run Building 14 will be a 291,728-squarefoot facility featuring a 36 -clear height. Retail Regional Distribution Dwight Consumer Products Food Kankakee E-Commerce Recent s Comparables (sorted by square feet) Buyer Seller Location City Size Date Price PSF Duke Realty Panattoni/PCCP S. John Lane Crossing Lockport 273,64 4/1/217 $91. Duke Realty Panattoni/PCCP 1641 S. John Lane Crossing Lockport 228,69 4/1/217 $12.8 Recent Comparables (sorted by square feet) Tenant Type Location City Size M Block & Sons Renewal 1881 Oak Park Ave Tinley Park 915,643 Clearwater Paper Corporation Renewal W. Mississippi Ave Elwood 624,37 Amazon Expansion Enterprise Blvd Crest Hill 438,15 Clearwater Paper Corporation New S. Walton Dr Elwood 236,426 Statistics Property type inventory Quarterly Q4 total net total net Average Average direct direct asking asking rent rent Warehouse & distribution 65,57,74 4.4% 5.1% 1,515,795 3,686,959 $3.69 8,39,597 4,318,341 16,24,87 9.5% 13.2% -52,13 177,822 $ ,996 22,812 Special Purpose 146,57.%.% 11,5 $. 11,5 s 81,677, % 6.7% 1,463,665 3,876,281 $3.75 8,646,593 4,532,

10 Chicago Industrial Report I-88 Corridor I-88 Corridor inventory 61,563,298 (%) 5.6% (%) 7.% net 14,675 net 444,462 Average rental rate ($ psf) $ mo. dollar change $.24 Net New, Net Absorption, Vacancy Two new leases, totaling 177,97 square feet, were signed in the I-88 submarket during the second quarter, helping to pull the rate down nearly 2 basis points from the previous quarter to 5.62 percent. The largest transaction of the quarter was a 161,31-square-foot lease at 16 Sequoia Drive in Aurora by Magick Woods, Inc. The modular kitchen and bathroom manufacturer is the first tenant in the 375,4-squarefoot speculative project, delivered by Seefried Industrial Properties, Inc. and Clarion Partners late last year. The second largest deal was an 83,42-square-foot renewal by Westell Technologies, Inc. at 75 N. Commons Drive, Aurora. Asking rents continued to edge upward, rising $.26 over the previous quarter to $4.74 per square foot net. Asking rates stood at $4.5 per square foot net during the same time last year. Kaneville 3 88 Elburn Sugar Grove Geneva Batavia North Aurora Aurora 34 Oswego Montgomery 38 Warrenville Lisle Naperville 59 Bolingbrook 355 Five investment sales, encompassing 392,711 square feet, closed in the second quarter. The two largest trades of the quarter were purchased by Brookfield Office Properties from TA Associates, part of a national 45-building portfolio. Neighboring buildings 6 and 7 North Commerce in Aurora sold at an allocated $75 per square foot with a 5.4 percent cap rate. Sandwich Yorkville Romeoville No new deliveries or notable ground breakings occurred during the second quarter. There is one build-to-suit project underway, as Duke Realty is building a 954,72-square-foot facility for Amazon. Speculative development remains quiet as a number of speculative spaces remain unfilled. Of the 1.8 million square feet of speculative product delivered since 215, approximately 978,65 square feet of first generation supply remains vacant. Accounting for 1.6 percent of overall submarket. Local Distribution Packaging Food Auto Recent s Comparables (sorted by square feet) Buyer Seller Location City Size Date Price PSF Gramercy Brennan Investment Group LLC 2727 W Diehl Road Naperville 449,33 1/217 $74.78 DRA Advisors Cabot Properties, Inc. 167 & 1674 Frontenac Road Naperville 144,556 2/217 $54.16 Recent Comparables (sorted by square feet) Tenant Type Location City Size Crate & Barrel New 175 Ambassador Drive Naperville 36,73 XPO Logistics Renewal 2759 N Eola Road Aurora 182,736 Dart Container Corporation Renewal 258 Prospect Court Aurora 1, Statistics inventory total net Average direct asking rent Warehouse & distribution 38,587,97 6.2% 7.1% 8, ,186 $ ,72 22,851, % 6.8% 6,248-17,724 $5.6 Special Purpose 124,34.%.% $. s 61,563, % 7.% 14, ,462 $ ,

11 Chicago Industrial Report Lake County inventory 67,515,659 (%) 7.2% (%) 9.1% net 464,891 net 466,875 Average rental rate ($ psf) $ mo. dollar change $.4 Net New, Net Absorption, Vacancy Across the 67.5 million-square-foot Lake County industrial market, the rate stands at 7.18 percent, which is down from the 7.76 percent reported in the first quarter. The average asking rental rate is $5.56 per square foot net, which is a significant drop from the $5.99 asking rate in the first quarter. The largest lease at the midpoint of the year in Lake County was Cornfield s long-term renewal for nearly 29, square feet at Sunset Avenue in Waukegan with Transwestern Investment Group. At 61 Schelter Road, Lincolnshire, Industrial Property Trust came to terms with ICE Mobility for a long-term lease for nearly 99, square feet. ICE Mobility relocated from Vernon Hills. In Lake Zurich, Insight Beverages, a subsidiary of Kerry Ingredients, signed a one-year renewal for 85, square feet with DRA Advisors at 635 Oakwood Road. Absorption is healthy and, currently, nearly 464,891 square feet has been posted year to date. Almost all of the activity occurred in the second quarter, as just under 2, square feet was posted in quarter one. Typically, there are not many leases signed for 1, square feet or greater in Lake County due to the fact that it is not a bulk distribution market and does not have any intermodal facilities. In Buffalo Grove, The Missner Group acquired a 122,-square-foot building at 9 95 Busch Parkway from ForeFront Properties for $7.4 million, or $61 per square foot. The Class B masonry building was completed in 1985 and is located in the high-image Corporate Grove Business Park. In Waukegan, as part of a twobuilding portfolio, STAG Industrial acquired a 131,-square-foot building at 3751 Sunset Avenue from Clarion Partners for $7.1 million. The single-tenant building serves as the headquarters for Woodland Foods, the nation s leading wholesaler of dried food products, which took occupancy in 211. The second building in the portfolio was 3731 Sunset Avenue, which traded for $6.3 million, or $48 per square foot. While the 3731 building is more modern than the 3751 building, the valuation was lower due to it being fully vacant. As part of Blackstone s 6 million-square-foot national acquisition from High StreetRealty Company LLC, the company acquired Industrial Drive in Libertyville for $5.7 million. While 23 percent of the portfolio is in Chicago, this was the only Lake County asset in the transaction. Lake County Antioch Lake Zurich Barrington Palatine Grayslake 45 Libertyville Vernon Hills Buffalo Grove Wheeling Arlington Heights WISCONSIN ILLINOIS Gurnee Waukegan North Chicago 41 Lake Bluff Northbrook Zion 94 Winnetka Wilmette Recent s Comparables (sorted by square feet) Buyer Seller Location City Size Date Price PSF Brookfield Asset Management TA Associates 6 N Commerce St Aurora 139,8 4/217 $75. Brookfield Asset Management TA Associates 7 N Commerce St Aurora 119,155 4/217 $75. Premier Property Solutions Roc Inc 4951 Indiana Ave Lisle 6,1 4/217 $79. Recent Comparables (sorted by square feet) The Lake County business community has been watching their workforce in the market, carefully following Amazon s lease for 626, square feet with Bridge Partners in Waukegan. The new distribution center is on track to open in July and will employ over 4 full-time workers. Bridge Partners is also working on the second speculative building in the park, consisting of 4,758 square feet, which should deliver in the third quarter. Bridge Partners is also working on a 133,951-square-foot build-to-suit for Okabe on Peterson Road in Grayslake. The building is expandable by 21,9 square feet. Tenant Type Location City Size Magick Woods, Inc. New 16 Sequoia Dr. Aurora 161,31 Westell Technologies Inc. Renewal 75 N Commons Dr. Aurora 24,78 Premio Inc. Renewal 212 Corporate Ln Naperville 15,796 Statistics inventory Healthcare Pharmaceutical Medical Instruments total net Average direct asking rent Food Warehouse & distribution 36,44, % 11.7% 314,11 315,513 $ ,858 31,357, % 5.8% 15, ,362 $6. 78, ,974 Special Purpose 113,277.%.% $. s 67,515, % 8.9% 464, ,875 $ ,12 122,

12 Chicago Industrial Report McHenry County McHenry County WISCONSIN ILLINOIS 173 inventory 29,67,4 (%) 1.% (%) 1.3% net 117,14 net 1,124,973 Average rental rate (nnn) $ mo. dollar change $.98 Antioch The McHenry County market witnessed two large leases signed during the first half of 217. In the first quarter, Round2 took 133, square feet of manufacturing space at 3 N. West St in Marango, while LDI Industries completed a sale/leaseback with Bayside Management Company, LLC at 1291 Jim Dhamer Drive in Huntley. All new leases signed, however, occurred in the first quarter, measuring 246,89 square feet. Interestingly, 85 percent of all new deals signed during the first half of 217 were in manufacturing spaces. Harvard 12 McHenry Although second quarter posted no new leasing volume, there are two buildings in the greater Crystal Lake area that are negotiating leases that could remove roughly 6, square feet from the market. Net New, Net Absorbtion, Vacancy Woostock 6 12 firms drove all of the first half 217 user sale volume in McHenry County, which measured 862,552 square feet. A considerable portion of this volume was attributed to two large transactions. Flocon purchased the former Brown Printing facility at McConnell Road, Woodstock totaling 532,5 square feet, and Aai Chem acquired 164,7 square feet from Modine at 44 Ringwood Road, Ringwood. These transactions contributed to the 39 basis point drop in McHenry County s rate to 1.3 percent. Although McHenry County s rate of 1.3 percent is considerably higher than the Chicago Metropolitan rate of 7.25 percent, it is primarily due to the shuttered Motorola manufacturing campus in Harvard, which has over 1.5 million square feet of vacant space that has been on the market since May 212. Marengo 9 Crystal Lake Lake Zurich Cary 14 9 Genoa Barrington Algonquin Palatine Huntley Carpentersville Sage Products has commenced on a 23,-square-foot addition in Cary, Illinois on 27 acres it purchased late last year. Once completed, the leading developer of medical products used to prevent hospital- acquired conditions will occupy over 7, square feet. Shockingly, the last major industrial project to be delivered in McHenry County was in 29. Bio Medical Healthcare Medical Instruments Food Statistics Recent s Comparables (sorted by square feet) Buyer Seller Location City Size Date Price PSF Aai Chem Modine Co. 44 Ringwood Rd Ringwood 164,7 4/217 $4.55 Illinois Lift Midwest Industrial Funds Inc. 64 Industrial Dr Cary 76,421 4/217 $37.95 Flocon Brown Painting Co McConnell Wood Stock 532,5 1/217 $12.21 inventory total net Average direct asking rent Warehouse & distribution 1,748,38 1.9% 1.9% -83,798 63,697 $ ,441 18,858, % 14.9% 2,812 1,61,276 $4.55 Special Purpose Recent Comparables (sorted by square feet) 22 Tenant Type Location City Size Round 2 New 3 N West St Marengo 133, LDI Industries /back 1291 Jim Dhamer Dr Huntley 112,14 FedEx Renewal 721 Industrial Dr Cary 27,3 s.%.% $. 29,67,4 1.% 1.3% 117,14 1,124,973 $ ,441 23

13 Chicago Industrial Report North Chicago North Chicago inventory 59,81,523 (%) 6.6% (%) 7.8% net -8,483 net -29,226 Average rental rate (nnn) $ mo. dollar change -$.77 Net New, Net Absorbtion, Vacancy activity The North Chicago submarket, which typically sees more limited leasing activity when compared with more robust logistics and manufacturingdriven submarkets, posted a quarterly net figure of negative 8,483 square feet. This comes on the heels of a negative 21, square feet of posted in the first quarter. Vacancy stands at 6.59 percent, which is flat from first quarter. Sunbelt Rentals leased a freestanding facility at 33 N. Tripp Ave. This 29,-square-foot facility was a former ComEd location and has additional land which will enable Sunbelt to store its equipment. Also, Kildare Studios committed to a 2,-square-foot new lease at 5 W. Bloomingdale Avenue. Current rental rates stand at $7.84 per square foot net, which is down slightly from first quarter s rate of $7.9 per square foot net. Local value-add investor Venture One Real Estate acquired a 67,-squarefoot building at 1112 N. Homan Avenue, just west of Humboldt Park, for $36 per square foot. On Goose Island, Next Gravity acquired a 38,-squarefoot, multi-story masonry building for $5 million, or nearly $13 per square foot. The new owner plans to redevelop the building for loft office space to capitalize on growing demand. North Side users are cautiously optimistic following the landmark planning and rezoning initiatives along the North Branch Industrial Corridor. The plan calls for increased density along the south portion of the river, including office and residential towers near Chicago Avenue and Goose Island. There are also massive redevelopments planned by Sterling Bay for the A. Finkl Steel Plant in Lincoln Park; however, some of the heavy industrial uses along Elston and the river will still be allowed and encouraged. Further north along the river, closer to Diversey Parkway, land uses will also shift toward more office, retail and residential uses. All of these changes should help gentrify the area and grow the tax base. This could lead to legacy industrial users to cash out and relocate out of the area. 294 Franklin Park Melrose Park 14 Rosemont Schiller Park Glenview 29 Niles 94 Oak Park Berwyn Skokie 14 Local Distribution Assembly E-Commerce Food 94 9 Fulton Market Evanston Goose Island Chicago Recent s Comparables (sorted by square feet) Buyer Seller Location City Size Date Price PSF Venture One Real Estate, LLC Chicago Press Corporation 1112 N. Homan Ave Chicago 67,31 5/217 $36.4 Next Gravity, Inc. Frost Lighting, Inc N. North Branch St Chicago 38,65 4/217 $ First American Properties Newberger Brothers Leather 2128 W. Fullerton Ave Chicago 21, 6/217 $ Recent Comparables (sorted by square feet) Tenant Type Location City Size Undisclosed New N. Knox Ave Chicago 34,425 Sunbelt Rentals New 33 N. Tripp Ave Chicago 29, Kildare Studios New 5 W. Bloomingdale Ave Chicago 2, Statistics inventory total net Average direct asking rent Warehouse & distribution 18,772, % 5.5% 326, ,538 $1.52 7,7 41,12, % 8.8% -334, ,764 $7.4 Special Purpose 25,.%.% $. s 59,81, % 7.8% -8,483-29,226 $7.84 7,7

14 Chicago Industrial Report 26 North Cook County inventory 48,287,63 (%) 4.9% (%) 5.8% net 16,261 net 316,9 Net New, Net Absorption, Vacancy Average rental rate (nnn) $ mo. dollar change $.2 Recent s Comparables (sorted by square feet) In the North Cook County, rates stand at 4.93 percent, which is a slight decrease from 5. percent in the first quarter. The rate has hovered in record low territory below six percent since late 213. Absorption in the second quarter was muted, but the year-to-date total is 317, square feet. The largest new lease of the second quarter was Specialty Promotions signing for nearly 55, square feet at W. Howard Street in Niles. Although this is a Class A, institutionally-owned building, they signed a short-term lease. In addition, Handi-Foil, another large Chicago occupier, signed a short-term lease, taking 52, square feet at 225 Gilman Avenue in Wheeling. Rental rates stand at $5.79 per square foot net, which is exactly one dollar higher than the overall market rate. In Niles, a trust controlled by Kim Jongkoo sold a 113,281-square-foot Class B warehouse at 64 W. Gross Point Road to Tara and Tamin Properties for $4.2 million, or $37 per square foot. A 6,-square-foot net-leased Fedex Ground distribution center at 3747 Howard Street in Niles sold for $3.7 million, or nearly $62 per square foot. The property sold at an 8% cap rate. In Skokie, at 341 Madison Street, The Missner Group sold a 41,25-squarefoot masonry warehouse to M Brother Properties for just under $58 per square foot. In North Cook County, industrial developable land is virtually nonexistent. One piece of industrial-zoned land adjacent to the Lincolnwood Retail Center was recently sold for senior housing, reflecting the rising demand for infill land. One new speculative industrial project has delivered in the North Cook County submarket this year. In 216, Molto Properties acquired an obsolete manufacturing facility from MFRI at 772 N. Lehigh Avenue and redeveloped the site with a 135,65-square-foot Class A, 32 -clear, rear-load distribution building. They have not signed any leases and are marketing the space divisible down to 3,-square-foot users. In Skokie, Hillwood Properties has closed on a acre land site at 361 Howard Street, with plans for a 236,912-square-foot distribution center with 26 dock doors and 67 trailer parks, which is a rarity in this market. Buyer Seller Location City Size Date Price PSF Wheeling Commercial Dev Llc Wtc Llc 351 W. Dundee Rd Wheeling 19, 5/217 TBD Tara & Tamin Properties Llc Kim Jongkoo Trust 64 W. Gross Point Rd Niles 113,281 6/217 $37.8 Silverside Partners FedEx Corporation 3747 Howard St Skokie 6, 5/217 $61.83 Recent Comparables (sorted by square feet) Tenant Type Location City Size Specialty Promotions New W. Howard St Niles 54,885 Handi-foil Corporation New 225 Gilman Ave Wheeling 52,17 Everfresh Corporation New Austin Ave Morton Grove 39,335 International Toner Corporation Renewal Carpenter Ave Wheeling 36, North Cook County Statistics 29 Arlington Heights 9 Elk Grove Village Itasca 12 Wood Dale inventory Vernon Hills Buffalo Grove Wheeling Des Plaines Bensenville Pharmaceutical Air Freight 3rd Party Logistics Food Medical Instruments Northbrook Rosemont Glenview Schiller Park Winnetka Skokie total net Wilmette Evanston Average direct asking rent Warehouse & distribution 15,628, % 7.9% -34,42 27,66 $ ,49 135,65 32,585, % 4.6% 5,681 46,294 $5.3 Special Purpose 73,274.%.% $. s 48,287,63 4.9% 5.6% 16, ,9 $ ,49 135,65 Niles

15 Chicago Industrial Report North DuPage Over half-a-million square feet of negative was posted in the second quarter, while year-to-date stands at negative 216,93 square feet. The North DuPage market is seeing some of the similar fundamentals that are witnessed just to the east in O Hare. While the rate of 6.9 percent is also below that of the overall market, the figures are worrying. In the Carol Pointe Business Park, electronics distributor Ingram Micro committed to a 91,-square-foot renewal with TA Associates. In the Brewster Creek Business Park, Greco secured a partial building prelease from a food distributor for 83,468 square feet in a new 167,-square-foot 36 -clear speculative building. The park is home to several other food users, and the new tenant was able to make the deal before the floors were poured, allowing for freezer and cooler buildout. In Addison, Prime Cargo signed a new lease on a short term basis for 25, square feet within a 65,183-square-foot building owned by Bridge Partners. inventory 81,133,58 (%) 6.9% (%) 7.9% net -512,11 net -216,93 Average rental rate ($ psf) $ mo. dollar change -$.18 Hoffman Estates Hanover Park Bartlett The two largest big box speculative developments going up in the submarket are from Exeter Property Group in Bartlett and Dermody in Carol Stream, adding a combined 8, square feet of new space as they deliver later this summer. While the demand pool still remains robust, there is a healthy amount of product available over 1, square feet, shifting leverage in the tenant s favor. Recent s Comparables (sorted by square feet) Buyer Seller Location City Blackstone High Street Congress Cir Roselle Blackstone High Street Village Dr Blackstone High Street 635 Church Rd Size 9 29 Itasca 2 Carol Stream 83 Bensenville Addison Elmhurst 355 Lombard Warrenville Batavia Schiller Park 29 Glendale Heights West Chicago Rosemont Wood Dale Bloomingdale Saint Charles Des Plaines Elk Grove Village Geneva The national High Street Realty Company LLC Blackstone industrial portfolio had a substantial geographic weighting in the North DuPage submarket. Assets include 11, square feet at Congress Circle in Roselle, 93, square feet at Village Drive in Carol Stream, 84, square feet at 635 Church Road in Hanover Park, 88, square feet at S. Westgate Drive in Addison, 69, square feet at 12 N. Schmale in Carol Stream, 47, square feet at 1 North Main Street in Lombard and 86, square feet at 235 W. Pinehurst Boulevard, Addison. In addition, 91, square feet at 111 Internationale Boulevard and 44, square feet at 49 Windy Point Drive, both in Glendale Heights, were part of the package, which was allocated at $88 per square foot. Overall, approximately one quarter of the total portfolio was located in suburban Chicagoland. In single asset trades, Industrial Property Trust acquired a 265,-square-foot fully leased two-tenant Class A building from ARA Advisors for $88 per square foot at a sub-five percent cap rate. Schaumburg 59 Net New, Net Absorption, Vacancy Downers 83 Grove Lisle Bolingbrook Naperville Aurora Burr Ridge Oswego Bolingbrook Woodridge Local Distribution Medical Food Consumer Products Date Price PSF 11,22 4/217 $88.7 Statistics Carol Stream 93,22 4/217 $88.7 Property Property type type Hanover Park 83,666 4/217 $88.7 inventory inventory Warehouse & distribution 48,2, % 9.6% -1,351 22,76 $ ,6 531,43 33,118, % 5.5% -51,75-436,979 $ ,8 Recent Comparables (sorted by square feet) 28 North DuPage Tenant Type Location City Size Cargo Partner Network Inc. New Center Ave Carol Stream 152,15 Amcor Ridge Plastics USA Inc Renewal W. Republic Dr Addison 98,157 Rana Foods Renewal 55 S. Spitzer Rd Bartlett 91,354 Ingram Micro Renewal Kimberly Dr Carol Stream 9,773 Special Purpose s Quarterly Q4 totalnet net total totalnet net Average Average direct direct asking asking rent rent 12,69.%.% $. 81,133,58 6.9% 7.9% -512,11-216,93 $ ,6 598,483 29

16 Chicago Industrial Report North Kane County North Kane County inventory 31,413,615 (%) 1.2% (%) 1.4% net 61,742 net 352,652 Average rental rate (nnn) $ mo. dollar change $.6 Net New, Net Absorbtion, Vacancy Three of the top five leases signed this quarter were lease renewals. The largest renewal was by Arthur Schuman Midwest LLC, which chose to remain in 187,738 square feet at Technology Drive, Elgin. Stockbridge Real Estate Funds was able to extend early the lease of the cheese importer. The largest new lease during the quarter was witnessed by Hillwood Co., which signed National Freight for a long-term lease in 52,364 square feet at 138 Madeline Lane, Elgin. This brought second quarter new leasing volume to 114,684 square feet. Interestingly, second quarter posted one one more lease transaction than the prior quarter, but its volume was eclipsed by the first quarter mark of 338,759 square feet. The North Kane County asking net rental rate was $5.1 per square foot in the second quarter, which was slightly above the $4.95 per square foot net reported last quarter. Rents have hovered around the $5. per square foot mark for the past six quarters, which is atypical due to North Kane County s inflated rate of 1.22 percent dramatically higher than the 7.16 percent Chicago average. Genoa Burlington Elgin Huntley Gilberts Cary Algonquin Carpentersville West Dundee Barrington Hoffman Estates Schaumburg One large portfolio sale included a stock of buildings in the North Kane County market. TA Associates, as part of a national disposition, sold four buildings totaling 579,285 square feet in Elgin. Brookfield Asset Management acquired these Class A assets at roughly $75. per square foot with an associated cap rate of 5.4 percent. Additionally, High Street Realty Company LLC was a buyer and seller of Class B assets in Elgin. Blackstone bought, from High Street, a two-building portfolio totaling 149,473 square feet on a 6 cap, part of a multi-state portfolio of which 17 properties were in Illinois. On the acquisition side, High Street Realty Company LLC purchased from Rental Systems a 181,137-square-foot warehouse/distribution facility at 1925 Holmes Road. The sale price was north of $51. per square foot. South Elgin Bartlett Hanover Park 2 Recent s Comparables (sorted by square feet) Buyer Seller Location City Size Date Price PSF Brookfield Asset Management TA Associates 4 Properties Elgin 579,285 4/217 $75.43 Blackstone High Street Realty Company LLC 2 Properties Elgin 149,473 4/217 $72.23 Rainy Investments Hackman Capital Partners 1111 Davis Rd Elgin 117,448 4/217 $27.25 Recent Comparables (sorted by square feet) The speculative development train has run out of steam a welcome sight due to North Kane County s bloated rate. We expect future development to be build-to-suit in nature. Tenant Type Location City Size Arthur Schuman Midwest LLC Renewal Technology Dr Elgin 187,738 LG Hausys America Inc. Renewal Holmes Rd Elgin 67,298 National Freight New 138 Madeline Ln Elgin 52,364 Statistics inventory Local Distribution Packaging Assembly total net Consumer Products Average direct asking rent Warehouse & distribution 16,393, % 16.1% 62, ,68 $ ,43 15,7,353 4.% 4.% ,972 $4.7 23,4 Special Purpose 13,2.%.% $. s 31,413, % 1.3% 61, ,652 $ ,83

17 Chicago Industrial Report Northwest Cook County inventory 26,515,513 (%) 11.7% (%) 13.6% net -821,554 net -583,277 Average rental rate (nnn) $ mo. dollar change $.31 Net New, Net Absorbtion, Vacancy Recent s Comparables (sorted by square feet) Buyer Seller Location City Size Date Price PSF Elkay Plastics Prologis Mitchell Blvd Schaumburg 34,8 5/217 $46.9 Undisclosed DTS Properties LLC W. Algonquin Rd Arlington Heights 113,91 6/217 TBD Advocate Health Care Trust Number W. College Dr Arlington Heights 38,5 5/217 $36.1 Hubergroup USA, Inc. Alden & Ott Printing Inks Co 616 E. Brook Dr Arlington Heights 27,75 4/217 $56. Recent Comparables (sorted by square feet) At midyear, the rate shot up significantly, from 8.4 percent to percent, the highest in the metro market. This spike was driven by a single building, Motorola s vacant one million-square-foot manufacturing facility on their Schaumburg campus. The company has been downsizing and officially vacated the facility with portions of the campus being marketed for redevelopment. In addition, the figure was significantly impacted, measuring negative 822, square feet this quarter and negative 583, square feet for the year. Roto Rooter signed a long-term lease for 38,5 square feet at Hammond Drive in Schaumburg. Despite higher taxes and limited Class A product, service-based companies like Roto Rooter are active in this light-industrial market in order to reach a dense population of suburban residences. In Palatine, Cubic Group committed to a 13,-square-foot lease at Vermont Street. Rental rates stand at $5.18 per square foot net, which is a healthy increase from the $4.95 per square foot net posted in the first quarter. The most notable sale was Prologis disposing of a functional Class B warehouse at 1365 Mitchell Boulevard, Schaumburg in a user sale to Elkay Plastics. While the building had struggled with, Prologis was able to sell at a healthy number, nearly $47 per square foot. In Arlington Heights, a 113,-square-foot flex building, with approximately 45-percent office buildout and occupied by the Employment Security Commission, was sold by DTS Properties to an undisclosed user. In McShane and MetLife s Huntington9 Business Park in Hoffman Estates, Trumpf took delivery of a high-image 56,297-square-foot headquarters facility visible from the Addams Expressway. The developer still has a few other sites available in the park for build-to-suit facilities. There is one project currently under at this time in the Northwest Cook market. Sodick, a global manufacturer of equipment for tool and die machines, is building a 4,-squarefoot headquarters and showroom in Schaumburg that is set to deliver in the third quarter. Also in the development pipeline, School Health has acquired a vacant office building at 59 Apollo Drive, along the south side of the Tollway in Rolling Meadows, with plans to demolish the structure and put up a 13,-square-foot distribution building. School Health will occupy approximately two-thirds of the space and market the remainder to another user. Tenant Type Location City Size Roto Rooter New Hammond Dr Schaumburg 38,5 Cubic Group, Inc. New S. Vermont St Palatine 13,4 Topco Associates, LLC New 21 Golf Rd Rolling Meadows 11,875 Imperial Woodworking New S. Vermont St Palatine 6,667 Northwest Cook County Statistics Hoffman Estates Schaumburg Hanover Park inventory Barrington 2 Palatine Service 29 Arlington Heights Elk Grove Village Itasca Packaging Buffalo Grove Wheeling Des Plaines total net Retail Average direct asking rent Northbrook Rosemont Glenview Schiller Park Food Warehouse & distribution 13,3, % 6.7% 395, ,361 $ ,297 13,134, % 2.7% -1,217,41-1,98,638 $5.33 4, Special Purpose 8,592.%.% $. s 26,515, % 13.6% -821, ,277 $5.18 4, 56, Niles

18 Chicago Industrial Report Northwest Indiana Northwest Indiana 9 Whiting East Chicago Hammond inventory 31,27,473 (%) 8.7% (%) 9.% net 259,249 net -57,958 Average rental rate (nnn) $ mo. dollar change $.11 Net New, Net Absorbtion, Vacancy Occupier demand was more than two times higher in the second quarter, measuring 8,28 square feet leased compared to 38,439 square feet leased in the first quarter. Superior demand also drove down Northwest Indiana s rate from a first quarter level of 9.35 percent to 8.66 percent. One noteworthy lease signed during the quarter was procured at th Street, Hammond, when Distribution International leased 45, square feet of warehouse/ distribution space. Merrillville 3 Schererville All of the first half of 217 deliveries occurred in the first quarter, measuring 174,4 square feet. The largest was NB Coatings taking possession of a 124,8-square-foot build-to-suit lease completed by Becknell Industrial at 211 NorthWind Parkway in Hobart. This is the automotive coatings firms second facility in the region, currently operating at 271 E. 17th Street, Lansing, IL. The town of Merrillville boasts the next speculative project to commence. Becknell Industrial broke ground on a 182,-square-foot development at NorthWind Crossings at 64 Mississippi Street. Lowell Recent s Comparables (sorted by square feet) Valparaiso Crown Point Second quarter net asking rental rates reached $3.64 per square foot, a slight improvement from the three-year average of $3.57 per square foot net. Last quarter s rent by comparison was $3.48 per square foot net. 2 2 Hobart Sauk Village Just one sale was transacted this quarter in Valparaiso. An undisclosed user purchased a 28,91-square-foot warehouse/distribution facility at 184 W. State Road 13. Last quarter volume was slightly better as 38,676 square feet sold. Investors have not been active during the first half of 217, as no investment sales were recorded. At this time last year, two investment sales were reported, measuring 147,381 square feet. Portage Munster Porter County Lansing Lake County Gary Distribution Service Auto Food Steel Statistics Buyer Seller Location City Size Date Price PSF Undisclosed Undisclosed 184 W. State Rd 13 Valparaiso 28,91 4/217 $31.86 Recent Comparables (sorted by square feet) Tenant Type Location City Size Distribution International New lease th St Hammond 45, Undisclosed New lease th St Hammond 35,28 inventory total net Average direct asking rent Warehouse & distribution 9,757, % 14.% 95,749-6,892 $ , 174,4 21,269, % 6.7% 163,5-51,66 $2.99 Special Purpose s.%.% $. 31,27, % 9.% 259,249-57,958 $ , 174,4

19 Chicago Industrial Report O Hare O Hare inventory 93,721,546 (%) 6.7% (%) 8.2% net -819,511 net -1,164,7 Average rental rate (nnn) $ mo. dollar change $.27 Net New, Net Absorption, Vacancy Recent s Comparables (sorted by square feet) Market indicators are mixed in the O Hare submarket, as stands at 6.86 percent, which is tighter than the overall market, but the area has posted negative 1.2 million-square-feet of net. In addition, there are eight spaces over 2, square feet of various ranges of quality on the market in O Hare. Large blocks on the sublease market include 27, square feet of 199 s vintage, Class A space at 855 N. Wood Dale Road and over 46, square feet in two Class A Elk Grove Village warehouses being marketed by CEVA Logistics. Perhaps there are business risks and uncertainties causing fear among global logistics users due to the unknowns of U.S. trade policy. Top leases in the O Hare market in the second quarter include RR Donnelly renewing for 181, square feet on a long-term basis at 275 Busse Road in Elk Grove Village, National Sugar Marketing renewing 127,16 square feet at 5 51 Country Club Drive in Bensenville and Axis Warehouse with a new lease for 111, square feet at 199 Pratt Street also in Elk Grove Village. As part of a $4 million national portfolio, Thomas Drive in Bensenville was sold by High Street Realty Company LLC to Blackstone for just over $7 per square foot. The overall portfolio was valued between a 6. percent to 6.2 percent cap rate. This was the only O Hare asset, although 17 total buildings traded in the Chicago market. In Elk Grove Village, data center operator EdgeConnex acquired the 64,-square-foot facility at 221 Lunt Avenue from Prologis for $11 per square foot. Data center users continue to be actively expanding in the market, as EdgeConnex acquired another neighboring building from Prologis a few months ago for a staggering $17 per square foot. In Des Plaines, Lorig Construction acquired a 41,-square-foot building at 21 S. Mount Prospect Rd along the Addams Expressway from Greco Contractors for nearly $6.5 million. The high price was supported by the large 7.6-acre land site. In Itasca, Fellowes Inc, who moved into a new build-to-suit in Aurora, disposed of their 119,-square-foot former property at 1612 Glenlake Avenue for $6.2 million to St Regis Crystal Company. While there are six submarkets in Chicago that have posted negative annual net, O Hare s figure could be concerning; however, part of that is driven by the 63, square feet of new speculative supply coming online. Developers are currently building 186,21 square feet in the market at this time. The largest development currently underway is from Liberty Property Trust which is building a 96,-square-foot speculative project on York Road just west of the airport in Bensenville. In addition, Clarius Properties, DRG & Crow Holdings and Panattoni Company all have sites in O Hare they are prepping for development this year. Buyer Seller Location City Size Date Price PSF Blackstone High Street Thomas Dr Bensenville 119,76 4/217 $7.11 EdgeConnex Prologis 221 Lunt Ave Elk Grove Village 64,157 5/217 $11. Lorig Construction Co Greco Contractors, Inc. 21 S. Mount Prospect Rd Des Plaines 41,463 6/217 $ Recent Comparables (sorted by square feet) Tenant Type Location City Size RR Donnelly Renewal 275 Busse Rd Elk Grove 181,1 Grane Distribution Renewal 73 Foster Ave Bensenville 174,824 National Sugar Marketing Renewal 5 51 Country Club Dr Bensenville 127,16 Statistics Property type 2 inventory Arlington Heights 9 Elk Grove Village Itasca Wood Dale 29 Addison Lombard 83 Elmhurst Des Plaines Bensenville North Lake Local Distribution Packaging Food Air Freight Quarterly Q4 total net total net Rosemont Schiller Park Franklin Park Melrose Park Average direct direct asking asking rent rent Glenview Oak Park Berwyn Warehouse & distribution 56,116, % 8.9% -552, ,233 $ ,21 63,982 37,576, % 6.5% -266, ,837 $5.92 Special Purpose 29,15.%.% $. s 93,721, % 8.% -819,511-1,164,7 $6. 186,21 63, Niles

20 Chicago Industrial Report Rockford Rockford inventory 24,274,487 (%) 1.% (%) 1.4% net 765,216 net 589,577 Average rental rate (nnn) $ mo. dollar change -$.1 Net New, Net Absorbtion, Vacancy As of midyear, the Rockford recorded two deals in excess of 1, square feet. The first was a new lease for 172,8 square feet by Thyssen Krupp at Landmark Dr in Belvidere. The second, a 117,56-square-foot renewal by Android Industries at 1222 Crosslink Pkwy, Belvidere. Six new leases, totaling 1,465, square feet, have been signed in 217. Year-to-date net stands at 589,577 square feet, a striking gain from the negative 25,647 square feet recorded in quarter two of 216. Five user sales and two investment sales have been recorded in 217, totaling 76,4 and 367, square feet respectively. The largest deal by midyear was the Stag Industrial Management, LLC acquisition of a recently delivered 336,-square-foot manufacturing facility from The Landmark Group at 775 Logistics Dr, in Belvidere. The building traded at a 7.5 percent cap rate at $68 per square foot. Winnebago WISCONSIN ILLINOIS Beloit 39 Machesney Park Loves Park Rockford Cherry Valley Belvidere Belvidere 9 The Yangfeng Automotive Interiors build-to-suit at 775 Logistics Drive in Belvidere was completed in quarter two, marking Rockford s largest delivery in two years. The 336,-square-foot manufacturing facility will supply interior cockpit components for the Jeep Cherokee being assembled at the FCA US Belvidere Plant. Another Belvidere-based buildto-suit is still underway at 675 Corporate Way, where a 221,844-squarefoot manufacturing facility is being developed for Magna Automotive. Delivery is scheduled for later this year. Recent s Comparables (sorted by square feet) Buyer Seller Location City Size Date Price PSF STAG Industrial Management LLC The Landmark Group 775 Logistics Dr Belvidere 336, 5/1/217 $68. Ecrk Huntwood LLC Bradley Heinrich 455 Steele Dr Machesney Park 31, 4/3/217 $121. JC Milling Company RWS Design & Controls Recent Comparables (sorted by square feet) 1275 Turret Dr Machesney Park 18, 4/17/217 $29. Tenant Type Location City Size ThyssenKrupp New Landmark Dr Belvidere 172,8 Android Industries Renewal 1222 Crosslink Pkwy Belvidere 117,56 FW Warehousing New 4 Auburn St Rockford 65,972 Statistics inventory Regional Distribution Auto Aero Space total net Average direct asking rent Food Warehouse & distribution 1,32, % 9.6% 39, ,396 $ ,953, % 11.1% 455,82 415,181 $ , , Special Purpose.%.% $. s 24,274,487 1.% 1.4% 765, ,577 $ , ,

21 Chicago Industrial Report South Chicago South Chicago Elmhurst North Lake Melrose Park 38 inventory 96,84,84 (%) 6.4% (%) 9.1% net 842,623 net 952,775 Average rental rate ($ psf) $ mo. dollar change -$.11 Net New, Net Absorption, Vacancy Oak Park South Chicago, the largest submarket in metro Chicago, posted a 6.39 percent rate, which is outperforming the overall market. Year-todate net stands at 952, square feet with 842, square feet of that being posted in the second quarter. Urbana-based Flex-N-Gate will lease a 288,-square-foot warehouse at 2924 E. 126th Street. The company manufactures automotive components and is collocating nearby the Ford Assembly plant. The property is set to be operational by the beginning of 218 and will employ 3 workers. In the Stockyards, Griffith Foods signed a long-term lease for 84,174 square feet of food processing space, which will be modified and utilized for the production of food flavors and ingredients. Upon completion of a substantial TI package, the building will be acquired by WP Carey. Asking rental rates currently stand at $5.93 per square foot net, which reflects a 27 cent increase. Fulton Market Pilsen Cicero Stockyards Berwyn McCook Hodgkins 55 Bedford Park Bridgeview Burr Ridge 2 9 Alsip Woodridge East Chic Orland Park 94 Tinley Park 6 South Holland Hammond 8 Buyer Seller Location City Size Date Price PSF Rosdev Group STORE Capital 1459 S. Muskegon Ave Chicago 196, 6/217 $69. Statistics Edsal VDA Asset Holdings, LLC S. Racine Ave Chicago 46,289 1/217 $ , 5/217 $ ,94 2/217 $72.14 Pacella Trucking 25 W. 35th St Chicago 6, 5/17 $ Recent Comparables (sorted by square feet) Tenant Type Location City Size Flex N Gate New lease 2924 E. 126th St Chicago 253,81 Nealey Foods New spec lease 3348 S. Pulaski Rd Chicago 16,78 Griffin Foods/Innova Flavors New lease 43 S. Morgan St Chicago 84,174 Munster Recent s Comparables (sorted by square feet) 4 57 Lansing Nearly 4, square feet of new product was delivered in South Chicago thus far in 217. The pipeline is robust as 36, square feet is currently under way and we are seeing increased developer interest in some of the more challenging infill sites. Preferred Freezer took occupancy of their $45 million, 227,43-square-foot, state-of-the-art cold storage facility in Pilsen Park at 2357 S. Wood Street. The building features 58 -clear ceilings and was developed by Clarius Partners. The building is under contract to be sold to Gramercy Property Trust. In the Stockyards, DCT Industrial has delivered a 166,37-square-foot 32 -clear building at 14 W. 44th Street. This is notable because they are the first publicly traded REIT to come into the South Chicago market and deliver speculative product. Realterm Whiting Blue Island As part of a national portfolio, STORE Capital sold the 196,-square-foot General Mills plant at 1459 S. Muskegon Avenue to Rosdev Group for $69 per square foot. Logistics-focused investor Realterm acquired a 6,-squarefoot cross-dock truck terminal from Pacella Trucking at 25 W. 35th Street. The building sold for $143 per square foot, but the higher value is attributed to the large land site which is right off the Stevenson Expressway. Chicago Local Distribution Assembly Auto Food Steel inventory total net Average direct asking rent Warehouse & distribution 35,1,91 7.1% 9.8% 178, ,196 $ , 393,413 6,879,384 6.% 8.6% 664,482 24,579 $7.19 Special Purpose s 13,79.%.% $. 96,84,84 6.4% 9.% 842, ,775 $ , 393,413 41

22 Chicago Industrial Report South Suburbs inventory 84,738,564 (%) 6.3% (%) 7.9% net 163,563 net -171,831 Average rental rate ($ psf) $ mo. dollar change -$.47 Net New, Net Absorption, Vacancy Second quarter net posted a positive 164, square feet; however, the midyear total is negative 172, square feet. The rate stands at 6.32 percent, which is a slight improvement from first quarter s 6.4 percent. In the second quarter, there were fewer large leases signed when compared with the first three months of the year. The largest transaction signed this year in the South Suburbs was 3PL Nexus Distribution committing to a full-building renewal for 37, square feet of functional Class B distribution space at 651 W. 73rd Street in Bedford Park with Brennan Investment Group. In addition, they also took nearly 76, square feet of additional space in a multi-tenant building next door with the same landlord. These buildings have a key transportation advantage for a 3PL because they are next door to the FedEx Hub and back up to the CSX Intermodal yard. In Alsip, Accord Carton Company signed a short-term lease for the full 284,-square-foot building at 1181 S. Central Avenue. Torchlight Investors, in partnership with Plymouth Industrial REIT, acquired a portfolio of 8 industrial properties, totaling 1.18 million square feet across the South Suburban markets from Colony Northstar. Although these are Class B buildings, the relatively low price-per-square-foot allocations appear below market value due to some vacancies across the portfolio and some upcoming lease expirations. The properties are spread across Alsip, Bedford Park, Harvey, Lansing and South Holland. Also in Bedford Park, Dubois Chemicals acquired a 45,-square-foot manufacturing building from a private family trust for just over $57 per square foot. Asking rental rates of $3.93 per square foot net are more affordable than the overall market, partially due to the fact that the majority of the product in South Suburbs is of an older, less efficient vintage. South Suburbs Burr Ridge New Lenox Hodgkins Orland Park Tinley Park 3 Bedford Park Bridgeview 2 Alsip 57 Blue Island Matteson South Holland Chicago Heights University Park 94 Lansing 9 8 Whiting Sauk Village Hammond Munster Schererville 42 Recent s Comparables (sorted by square feet) There currently isn t any market product under in the South Suburbs. While leasing velocity is not robust enough to kick off speculative development, build-to-suit activity will become more prominent due to the infill nature of the submarket. Buyer Seller Location City Size Date Price PSF Torchlight Investors/Plymouth REIT Colony Northstar, Inc S. Exchange Ave Lansing 455,858 5/217 $26.32 Torchlight Investors/Plymouth REIT Colony Northstar, Inc S Austin Ave Alsip 162,714 5/217 $29.5 Torchlight Investors/Plymouth REIT Colony Northstar, Inc W. 122nd St Alsip 153,368 5/217 $28.69 Torchlight Investors/Plymouth REIT Colony Northstar, Inc E. 171st St Harvey 115,518 5/217 $19.4 Torchlight Investors/Plymouth REIT Colony Northstar, Inc W. Armory Dr South Holland 98,34 5/217 $25.42 Recent Comparables (sorted by square feet) Tenant Type Location City Size Nexus Distribution Renewal 651 W. 73rd St Bedford Park 36,552 Accord Carton Company New 1181 S. Central Ave Alsip 284,356 Nexus Distribution New 6558 W. 73rd St Bedford Park 75,939 Tibor Machine Renewal 74 W. 1th Pl Bridgeview 71,325 Local Distribution Assembly Auto Statistics inventory total net Average direct asking rent Plastics Warehouse & distribution 4,186, % 9.3% 344, ,568 $ ,384,56 6.% 6.9% -18,69-2,263 $4.2 7, Special Purpose 1,167,63.%.% $. s 84,738, % 7.9% 163, ,831 $3.93 7, 43

23 Chicago Industrial Report 44 Southeast Wisconsin inventory 54,598,388 (%) 5.3% (%) 5.5% net 772,93 net 43,978 Average rental rate ($ psf) $ mo. dollar change -$.22 Net New, Net Absorption, Vacancy Recent s Comparables (sorted by square feet) Large users continue to absorb space in the Southeast Wisconsin market. This quarter, Goodwill Industries leased an existing 13,9-squarefoot speculative facility at 1 Land and Lakes Drive, Sturtevant. The customized packaging and assembly solutions firm immediately contracted with owner Zilber Property Group to expand the building by an additional 115,5 square feet. The resulting transaction contributed greatly to the second quarter leasing volume of 351,4 square feet, which was, however, down just over 1 percent from the previousquarter level. The largest renewal this quarter was completed at 14 International Drive, Mount Pleasant when SEDA extended in 61,162 square feet from H S A Commercial Real Estate. Zilber Property Group was an active investor this quarter, through two transactions in Sturtevant. They bought a vacant 132,-square-foot speculative building at 1 Land and Lakes from Land and Lakes for $75.76 per square foot; Zilber had Goodwill Industries lined up to lease the facility prior to closing. In their second transactions, they acquired a 19,385-square-foot facility at 111 S. Sylvania Avenue from Sierra Property Management for $55.72 per square foot. The property was leased to Publications International Ltd. One user sale was completed this quarter, as Cooper Technica Inc. purchased 18,67 square feet from Trans-Chemco Inc. for $71.95 per square foot located at th Street, Bristol. Buyer Seller Location City Size Date Price PSF Zilber Property Group Land and Lakes 1 Land and Lakes Dr Sturtevant 132, 5/217 $75.76 Nova Alhambra Properties LLC th Ave Kenosha 131,59 4/217 $7.43 Zilber Property Group Sierra Property Management 111 S. Sylvania Ave Sturtevant 19,385 5/217 $55.72 Recent Comparables (sorted by square feet) Two buildings were delivered to the market this quarter, adding 682,848 square feet to Southeast Wisconsin s industrial inventory. The largest completion was by First Industrial Realty Trust, which delivered a 62,388-square-foot speculative facility at th Street, Somers. They were successful in leasing half of the building to Madden Communications prior to completion. The second delivery was a build-to-suit lease for Vonco Products which took possession on 8,5 square feet at th Avenue, m. The flexible packaging and promotional products manufacturer relocated from Lake Villa, IL. Also during the quarter, CenterPoint Properties commenced on a 417,384-square-foot speculative facility at Lakeview Corporate Park in Pleasant Prairie. The building boasts 36-foot clearance and 42 exterior docks and is scheduled to be completed by year end. Tenant Type Location City Size Goodwill Industries New lease 1 Land and Lakes Dr Sturtevant 246,4 Buske Lines, Inc. Expansion 33 S. Sylvania Ave Sturtevant 75, SEDA Renewal 14 International Dr Mount Pleasant 61,162 Southeast Wisconsin Local Distribution Consumer Products Food Packaging E-Commerce Statistics Lake Geneva 12 inventory Mukwonago Burlington 5 Waterford WISCONSIN ILLINOIS Racine County Kenosha County Franklin Mt Pleasant Sturtevant Somens Kenosha Pleasant Prairie total net Oak Creek Average direct asking rent Warehouse & distribution 29,928, % 7.3% 672,43 61,148 $4.57 1,517,384 82,955 24,626,51 2.8% 3.4% 1,5-179,17 $3.25 8,5 Special Purpose 43,624.%.% $. 83 s 54,598, % 5.5% 772,93 43,978 $4.19 1,517, , Racine 45

24 Chicago Industrial Report West Cook County West Cook County Bensenville Franklin Park 94 9 inventory 92,76,87 (%) 9.4% (%) 11.2% net -193,881 net 183,3 Average rental rate ($ psf) $ mo. dollar change $.6 Net New, Net Absorption, Vacancy One of the largest leases captured in the Chicago metro area this quarter occurred in West Cook County, driving down the second quarter rate to 9.37 percent, a remarkable 1 basis point decline from the previous quarter. Expeditors leased a 31,458-square-foot in a 491, square-foot speculative warehouse built by Panattoni Company at 34 Wolf Road, Franklin Park. This lease transaction accounted for over 41 percent of all West Cook County s leasing volume of 744,527 square feet. One large lease renewal was also signed during the quarter, as Dealer Tire extended its lease for 118,235 square feet with AEW Capital Management at 378 River Road, Franklin Park. Despite stronger second quarter leasing volume, the second quarter asking net rental rate total of $5.25 per square foot was down almost 25 cents from the first quarter rent of $5.49 per square foot net. Rents tend to fluctuate in the West Cook County market due to some of the recently constructed speculative product being marketed without an asking rental rate. Elmhurst 83 North Lake 294 Melrose Park Oak Park Berwyn McCook Cicero 55 Fulton Market Bridge Partners LLC sold a four-building cold storage portfolio in Chicago, totaling 658,46 square feet, to Investcorp Group, which included a 313,899-square-foot asset at th Street, Lyons. The building sold for $ per square foot with a capitalization rate of 7.4 percent. User sales featured two transactions in excess of 1, square feet. Digital Realty Trust Inc. purchased from Edsal Company a 274,33-square-foot warehouse/distribution center at Edgington Street, Franklin Park for $51.4 per square foot. This is the fifth building that the data center solutions provider has purchased in Franklin Park. AMERCO Real Estate Company (UHaul) bought 16, square feet at 95 25th Avenue, Bellwood from Grane Transportation Company for $23.75 per square foot. Burr Ridge Hodgkins Bedford Park Bridgeview 2 Recent s Comparables (sorted by square feet) Although there were no new developments delivered this quarter, there are five projects (two speculative, one build-to-suit and two building additions) slated for completion next quarter that will raise West Cook County s inventory base by 559,253 square feet. The largest development is for Go2 Logistics, which should complete its 23,15-square-foot build-to-suit project at 2233 West Street, River Grove. Buyer Seller Location City Size Date Price PSF Investcorp Group Bridge Partners LLC th St. Lyons 313,899 4/217 $ Digital Realty Trust Inc. Edsal Company Edgington St. Franklin Park 274,33 5/217 $51.4 AMERCO Real Estate Company Grane Transportation Company 95 25th Ave. Bellwood 16, 6/217 $23.75 Recent Comparables (sorted by square feet) Tenant Type Location City Size Expeditors New lease 34 Wolf Rd. Franklin Park 31,458 Dealer Tire Renewal 378 River Rd. Franklin Park 118,235 A Long Range Car Storage Co. New lease 95 River St. Schiller Park 89,546 Local Distribution Printers Air Freight Food Statistics Property type inventory Quarterly Q4 total net total net Average Average direct direct asking asking rent rent Warehouse & distribution 43,233, % 15.7% 566, ,913 $ , ,123 49,448, % 6.6% -76,614-76,883 $4.47 Special Purpose 24,6.%.% $. s 92,76,87 9.4% 1.9% -193, ,3 $ , ,

25 Chicago Inventory (s.f.) Quarterly total net (s.f.) total net (s.f.) total net (% of stock) (%) (%) Average total asking rent ($ p.s.f.) Quarterly (s.f.) (s.f.) (s.f.) Q2 217 Industrial Statistics Inventory (s.f.) Quarterly total net (s.f.) total net (s.f.) total net (% of stock) (%) (%) Average total asking rent ($ p.s.f.) Quarterly (s.f.) (s.f.) (s.f.) Chicago s Warehouse & Distribution 613,7,78 4,685,43 8,76, % 8.% 9.56% $4.79 3,948,377 9,364,54 17,544,3 533,18,81-1,861,537-1,41, % 6.19% 7.52% $ ,474 92, ,244 Special Purpose 2,322,157 14,2 25,7 1.11% 6.57% 8.65% $. 11,5 s 1,149,4,946 2,838,66 7,69,458.67% 7.16% 8.61% $4.79 4,517,851 1,278,32 18,158,274 s Fox Valley Warehouse & Distribution 18,357, ,434-24, % 11.8% 12.2% $ ,9 137,5 17,877,467-76,731-2, % 3.15% 8.12% $5.17 Special Purpose.%.%.% $. s 36,235, ,165-27, % 7.53% 1.16% $ ,9 137,5 I-39 Corridor Warehouse & Distribution 14,694,619-15,5 -.11% 3.96% 6.76% $ ,166,489-41,52 76,94.42% 5.76% 5.76% $2.82 Special Purpose 34,45.%.%.% $. s 32,895,558-41,52 61,44.19% 4.95% 6.2% $3.2 I-55 Corridor Warehouse & Distribution 71,938, ,4 1,224, % 9.42% 12.4% $ , ,546 2,187,694 12,245,22-277, , % 7.5% 9.27% $ ,25 Special Purpose 54,2 14,2 14,2 26.2%.%.% $. s 84,237,443 56,83 821,158.97% 9.7% 11.63% $ , ,546 2,25,944 I-57 Corridor Warehouse & Distribution 21,81, ,5 374, % 7.3% 11.37% $ ,5 394,5 1,857,165 9,639,414 11, ,26 1.3% 2.4% 2.4% $. Special Purpose 275,95.% 55.27% 55.27% $. s 3,997, , , % 5.91% 8.86% $ ,5 394,5 1,857,165 I-8 Corridor Warehouse & Distribution 65,57,74 1,515,795 3,686, % 4.44% 5.1% $3.69 1,285,258 4,318,341 8,39,597 16,24,87-52,13 177, % 9.49% 13.25% $ , ,996 Special Purpose 146,57 11,5 7.85%.%.% $. 11,5 s 81,677,731 1,463,665 3,876, % 5.42% 6.69% $3.75 1,285,258 4,532,653 8,646,593 I-88 Corridor Warehouse & Distribution 38,587,97 8, , % 6.22% 7.1% $ ,72 22,851,861 6,248-17, % 4.63% 6.77% $5.6 Special Purpose 124,34.%.%.% $. s 61,563,298 14, ,462.72% 5.62% 6.96% $ ,72 Lake County Warehouse & Distribution 36,44, ,11 315,513.88% 9.56% 11.7% $ ,858 31,357,641 15, ,362.48% 4.48% 5.79% $6. 82, ,974 78,154 Special Purpose 113,277.%.%.% $. s 67,515, , ,875.69% 7.18% 8.94% $ , , ,12 McHenry County Warehouse & Distribution 1,748,38-83,798 63,697.59% 1.88% 1.88% $ ,441 18,858,696 2,812 1,61, % 14.67% 14.94% $4.55 Special Purpose.%.%.% $. s 29,67,4 117,14 1,124, % 1.3% 1.29% $ ,441 North Chicago Warehouse & Distribution 18,772, , ,538.99% 5.9% 5.49% $1.52 3, 7,7 41,12, , , % 7.28% 8.82% $7.4 Special Purpose 25,.%.%.% $. s 59,81,523-8,483-29, % 6.59% 7.77% $7.84 3, 7,7 North Cook County Warehouse & Distribution 15,628,356-34,42 27, % 6.58% 7.86% $ ,65 181,49 32,585,433 5,681 46,294.14% 4.16% 4.56% $5.3 Special Purpose 73,274.%.%.% $. s 48,287,63 16, ,9.66% 4.93% 5.62% $ ,65 181,49 North DuPage County Warehouse & Distribution 48,2,197-1,351 22,76.46% 8.35% 9.58% $ ,43 531,43 482,6 33,118,621-51,75-436, % 4.76% 5.48% $ ,8 Special Purpose 12,69.%.%.% $. s 81,133,58-512,11-216, % 6.88% 7.9% $ ,43 598, ,6 North Kane County Warehouse & Distribution 16,393,62 62, ,68 2.2% 15.94% 16.14% $ ,43 15,7, ,972.14% 3.98% 3.98% $4.7 23,4 Special Purpose 13,2.%.%.% $. s 31,413,615 61, , % 1.22% 1.32% $ ,83 Northwest Cook County Warehouse & Distribution 13,3, , , % 6.28% 6.71% $ ,297 56,297 13,134,247-1,217,41-1,98, % 17.32% 2.7% $5.33 4, Special Purpose 8,592.%.%.% $. s 26,515, , , % 11.73% 13.62% $ ,297 56,297 4, Northwest Indiana Warehouse & Distribution 9,757,55 95,749-6, % 12.89% 13.99% $ ,6 174,4 182, 21,269, ,5-51, % 6.72% 6.72% $2.99 Special Purpose.%.%.% $. s 31,27, ,249-57, % 8.66% 9.1% $ ,6 174,4 182, O'Hare Warehouse & Distribution 56,116, , , % 7.51% 8.95% $ ,982 63, ,21 37,576, , , % 5.53% 6.48% $5.92 Special Purpose 29,15.%.%.% $. s 93,721, ,511-1,164,7-1.24% 6.71% 7.96% $6. 175,982 63, ,21 Rockford Warehouse & Distribution 1,32,576 39, , % 9.48% 9.59% $ ,953, ,82 415, % 1.46% 11.6% $ , 336, 221,844 Special Purpose.%.%.% $. s 24,274, , , % 1.5% 1.43% $ , 336, 221,844 South Chicago Warehouse & Distribution 35,1,91 178, , % 7.11% 9.8% $ ,43 393,413 36, 6,879, ,482 24,579.4% 5.99% 8.57% $7.19 Special Purpose 13,79.%.%.% $. s 96,84,84 842, ,775.99% 6.39% 9.1% $ ,43 393,413 36, South Suburbs Warehouse & Distribution 4,186, , , % 6.83% 9.3% $ ,384,56-18,69-2, % 6.2% 6.87% $4.2 7, 7, Special Purpose 1,167,63.%.%.% $. s 84,738, , , % 6.32% 7.93% $3.93 7, 7, Southeast Wisconsin Warehouse & Distribution 29,928, ,43 61, % 7.29% 7.29% $ ,348 82,955 1,517,384 24,626,51 1,5-179, % 2.79% 3.37% $3.25 8,5 8,5 Special Purpose 43,624.%.%.% $. s 54,598, ,93 43,978.79% 5.26% 5.52% $ , ,455 1,517,384 West Cook County Warehouse & Distribution 43,233, , , % 13.49% 15.75% $ , ,253 49,448,384-76,614-76, % 5.77% 6.62% $4.47 Special Purpose 24,6.%.%.% $. s 92,76,87-193, ,3.2% 9.37% 1.87% $ , ,253 George Cutro Research Director tel George.Cutro@am.jll.com Chad Buch Senior Research Analyst tel Chad.Buch@am.jll.com Paul Marsh Research Analyst tel Paul.Marsh@am.jll.com 8755 W Higgins Rd Suite 75, Chicago, IL Jones Lang LaSalle IP, Inc. 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26 Chicago Q2 217 Industrial development Dashboard This report analyzes all industrial developments under & new deliveries > 3, s.f. 1,278,32 delivered (s.f.) Completions in-depth leased at delivery (%) 61.1% speculative at delivery (s.f.) 5,697,591 BTS at delivery (s.f.) 4,58,729 Owner-User at delivery (s.f.) 1,821,512 # of properties delivered 47 Average rental rate - 25,, 2,, 15,, 1,, 5,, New deliveries Historical deliveries Top 5 projects delivered to date Building Owner/developer RBA (s.f.) Spec or BTS Delivery date d at delivery (%) Mars/Wrigley I-8 Corridor CenterPoint Properties 1,388,2 BTS Q % CIC 752 I-8 Corridor CenterPoint Properties 751,769 Speculative Q % Channahon Corporate Center Bldg A I-8 Corridor IDI Gazeley 749,554 Speculative Q1 217 % First Park 94 Southeast Wisconsin First Industrial Realty Trust 62,348 Speculative Q % Aeroterm ORD Spec Phase 1 O'Hare Aeroterm 428, Speculative Q % 18,158,274 16,, 14,, BTS Speculative (s.f.) in-depth pre-leased (%) 54.8% speculative under (s.f.) 8,73,494 BTS under (s.f.) 9,454,78 Owner-user under (s.f.) - # of properties UC 4 Average rental rate - 12,, 1,, 8,, 6,, 4,, 2,, Upcoming deliveries by year (s.f., excludes ) Top 5 projects currently under Building Owner/developer RBA (s.f.) Spec or BTS Delivery date Pre-leased (%) General Mills I-8 Corridor General Mills 1,5, BTS Q % IKEA 2 I-8 Corridor IKEA 1,25, BTS Q % Uline BTS 1 Southeast Wisconsin Uline, Inc. 1,1, BTS Q % Core5 DHL I-8 Corridor DHL/Core5 1,26, Speculative Q3 217 % Georgia Pacific BTS I-57 Corridor Venture One Real Estate 1,,56 BTS Q % Source: JLL Research Jones Lang LaSalle IP, Inc. All rights reserved.