CoStar Industrial Statistics. T h i r d Q u a r t e r St. Louis Industrial Market

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1 CoStar Industrial Statistics T h i r d Q u a r t e r

2 Third Quarter 2017 St. Louis Table of Contents Table of Contents A Methodology B Terms & Definitions C Market Highlights & Overview CoStar Markets & Submarkets Inventory & Development Analysis Inventory & Development Analysis Select Top Deliveries Select Top Under Construction Properties Figures at a Glance Figures at a Glance by Building Type & Market Figures at a Glance by Building Type & Submarket Historical Figures at a Glance Leasing Activity Analysis Select Top Lease Transactions Analysis of Individual CoStar Submarket Clusters Central County Market Illinois Market North St Louis County Market South St Louis County Market St Charles County Market St Louis City Market West St Louis County Market 2017 CoStar Group, Inc. CoStar Industrial Statistics A

3 St. Louis Third Quarter 2017 Methodology The CoStar Industrial Statistics calculates Industrial statistics using CoStar Group's base of existing, under construction and under renovation Industrial buildings in each given metropolitan area. All Industrial building types are included, including warehouse, flex / research & development, distribution, manufacturing, industrial showroom, and service buildings, in both single-tenant and multi-tenant buildings, including owner-occupied buildings. CoStar Group's global database includes approximately 95.6 billion square feet of coverage in 4.4 million properties. All rental rates reported in the CoStar Industrial Report are calculated using the quoted rental rate for each property. For information on subscribing to CoStar s other products and services, please contact us at COSTAR, or visit our web site at Copyright 2017 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of the information contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness or completeness of the information. The publication is provided as is and CoStar expressly disclaims any guarantees, representations or warranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. CoStar Group, Inc L ST NW Washington, DC (800) NASDAQ: CSGP B CoStar Industrial Statistics 2017 CoStar Group, Inc.

4 Third Quarter 2017 St. Louis Terms & Definitions Availability Rate: The ratio of available space to total rentable space, calculated by dividing the total available square feet by the total rentable square feet. Available Space: The total amount of space that is currently being marketed as available for lease in a given time period. It includes any space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date. Build-to-Suit: A term describing a particular property, developed specifically for a certain tenant to occupy, with structural features, systems, or improvement work designed specifically for the needs of that tenant. A build-to-suit can be leased or owned by the tenant. In a leased build-to-suit, a tenant will usually have a long term lease on the space. Buyer: The individual, group, company, or entity that has purchased a commercial real estate asset. Cap Rate: Short for capitalization rate. The Cap Rate is a calculation that reflects the relationship between one year s net operating income and the current market value of a particular property. The Cap Rate is calculated by dividing the annual net operating income by the sales price (or asking sales price). CBD: Abbreviation for Central Business District. (See also: Central Business District) Central Business District: The designations of Central Business District (CBD) and Suburban refer to a particular geographic area within a metropolitan statistical area (MSA) describing the level of real estate development found there. The CBD is characterized by a high density, well organized core within the largest city of a given MSA. Class A: A classification used to describe buildings that generally qualify as extremely desirable investment-grade properties and command the highest rents or sale prices compared to other buildings in the same market. Such buildings are well located and provide efficient tenant layouts as well as high quality, and in some buildings, one-ofa-kind floor plans. They can be an architectural or historical landmark designed by prominent architects. These buildings contain a modern mechanical system, and have above-average maintenance and management as well as the best quality materials and workmanship in their trim and interior fittings. They are generally the most attractive and eagerly sought by investors willing to pay a premium for quality. Class B: A classification used to describe buildings that generally qualify as a more speculative investment, and as such, command lower rents or sale prices compared to Class A properties. Such buildings offer utilitarian space without special attractions, and have ordinary design, if new or fairly new; good to excellent design if an older non-landmark building. These buildings typically have average to good maintenance, management and tenants. They are less appealing to tenants than Class A properties, and may be deficient in a number of respects including floor plans, condition and facilities. They lack prestige and must depend chiefly on a lower price to attract tenants and investors. Class C: A classification used to describe buildings that generally qualify as no-frills, older buildings that offer basic space and command lower rents or sale prices compared to other buildings in the same market. Such buildings typically have below-average maintenance and management, and could have mixed or low tenant prestige, inferior elevators, and/or mechanical/electrical systems. These buildings lack prestige and must depend chiefly on a lower price to attract tenants and investors. Construction Starts: Buildings that began construction during a specific period of time. (See also: Deliveries) Contiguous Blocks of Space: Space within a building that is, or is able to be joined together into a single contiguous space. Deliveries: Buildings that complete construction during a specified period of time. In order for space to be considered delivered, a certificate of occupancy must have been issued for the property. Delivery Date: The date a building completes construction and receives a certificate of occupancy. Developer: The company, entity or individual that transforms raw land to improved property by use of labor, capital and entrepreneurial efforts. Direct Space: Space that is being offered for lease directly from the landlord or owner of a building, as opposed to space being offered in a building by another tenant (or broker of a tenant) trying to sublet a space that has already been leased. : The square footage of buildings that have received a certificate of occupancy and are able to be occupied by tenants. It does not include space in buildings that are either planned, under construction or under renovation. Flex Building: A type of building designed to be versatile, which may be used in combination with office (corporate headquarters), research and development, quasi-retail sales, and including but not limited to industrial, warehouse, and distribution uses. A typical flex building will be one or two stories with at least half of the rentable area being used as office space, have ceiling heights of 16 feet or less, and have some type of drive-in door, even though the door may be glassed in or sealed off. Full Service Rental Rate: Rental rates that include all operating expenses such as utilities, electricity, janitorial services, taxes and insurance. Gross Absorption: The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing Activity, which is the sum of all space leased over a certain period of time. Unless otherwise noted Gross Absorption includes direct and sublease space. Growth in Inventory: The change in size of the existing square footage in a given area over a given period of time, generally due to the construction of new buildings. Industrial Building: A type of building adapted for such uses as the assemblage, processing, and/or manufacturing of products from raw materials or fabricated parts. Additional uses include warehousing, distribution, and maintenance facilities. The primary purpose of the space is for storing, producing, assembling, or distributing product. Landlord Rep: (Landlord Representative) In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the owner/landlord is referred to as the Landlord Rep. Leased Space: All the space that has a financial lease obligation. It includes all leased space, regardless of whether the space is currently occupied by a tenant. Leased space also includes space being offered for sublease. Leasing Activity: The volume of square footage that is committed to and signed under a lease obligation for a specific building or market in a given period of time. It includes direct leases, subleases and renewals of existing leases. It also includes any pre-leasing activity in planned, under construction, or under renovation buildings. Market: Geographic boundaries that serve to delineate core areas that are competitive with each other and constitute a generally accepted primary competitive set of areas. Markets are building-type specific, and are non-overlapping contiguous geographic designations having a cumulative sum that matches the boundaries of the entire Region (See also: Region). Markets can be further subdivided into Submarkets. (See also: Submarkets) Multi-Tenant: Buildings that house more than one tenant at a given time. Usually, multi-tenant buildings were designed and built to accommodate many different floor plans and designs for different 2017 CoStar Group, Inc. CoStar Industrial Statistics C

5 St. Louis Third Quarter 2017 tenant needs. (See also: Tenancy). Net Absorption: The net change in occupied space over a given period of time. Unless otherwise noted Net Absorption includes direct and sublease space. Net Rental Rate: A rental rate that excludes certain expenses that a tenant could incur in occupying office space. Such expenses are expected to be paid directly by the tenant and may include janitorial costs, electricity, utilities, taxes, insurance and other related costs. New Space: Sometimes called first generation space, refers to space that has never been occupied and/or leased by a tenant. Occupied Space: Space that is physically occupied by a tenant. It does not include leased space that is not currently occupied by a tenant. Office Building: A type of commercial building used exclusively or primarily for office use (business), as opposed to manufacturing, warehousing, or other uses. Office buildings may sometimes have other associated uses within part of the building, i.e., retail sales, financial, or restaurant, usually on the ground floor. Owner: The company, entity, or individual that holds title on a given building or property. Planned/Proposed: The status of a building that has been announced for future development but not yet started construction. Preleased Space: The amount of space in a building that has been leased prior to its construction completion date, or certificate of occupancy date. Price/SF: Calculated by dividing the price of a building (either sales price or asking sales price) by the Rentable Building Area (RBA). Property Manager: The company and/or person responsible for the day-to-day operations of a building, such as cleaning, trash removal, etc. The property manager also makes sure that the various systems within the building, such as the elevators, HVAC, and electrical systems, are functioning properly. Quoted Rental Rate: The asking rate per square foot for a particular building or unit of space by a broker or property owner. Quoted rental rates may differ from the actual rates paid by tenants following the negotiation of all terms and conditions in a specific lease. RBA: Abbreviation for Rentable Building Area. (See also: Rentable Building Area) Region: Core areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Regions are further divided into market areas, called Markets. (See also: Markets) Relet Space: Sometimes called second generation or direct space, refers to existing space that has previously been occupied by another tenant. Rentable Building Area: (RBA) The total square footage of a building that can be occupied by, or assigned to a tenant for the purpose of determining a tenant s rental obligation. Generally RBA includes a percentage of common areas including all hallways, main lobbies, bathrooms, and telephone closets. Rental Rates: The annual costs of occupancy for a particular space quoted on a per square foot basis. Sales Price: The total dollar amount paid for a particular property at a particular point in time. Sales Volume: The sum of sales prices for a given group of buildings in a given time period. Seller: The individual, group, company, or entity that sells a particular commercial real estate asset. SF: Abbreviation for Square Feet. Single-Tenant: Buildings that are occupied, or intended to be occupied by a single tenant. (See also: Build-to-suit and Tenancy) Sublease Space: Space that has been leased by a tenant and is being offered for lease back to the market by the tenant with the lease obligation. Sublease space is sometimes referred to as sublet space. Submarkets: Specific geographic boundaries that serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted primary competitive set, or peer group. Submarkets are building type specific (office, industrial, retail, etc.), with distinct boundaries dependent on different factors relevant to each building type. Submarkets are non-overlapping, contiguous geographic designations having a cumulative sum that matches the boundaries of the Market they are located within (See also: Market). Suburban: The Suburban and Central Business District (CBD) designations refer to a particular geographic area within a metropolitan statistical area (MSA). Suburban is defined as including all office inventory not located in the CBD. (See also: CBD) Tenancy: A term used to indicate whether or not a building is occupied by multiple tenants (See also: Multi-tenant) or a single tenant. (See also: Single-tenant) Tenant Rep: Tenant Rep stands for Tenant Representative. In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the tenant is referred to as a Tenant Rep. Time On Market: A measure of how long a currently available space has been marketed for lease, regardless of whether it is vacant or occupied. Under Construction: Buildings in a state of construction, up until they receive their certificate of occupancy. In order for CoStar to consider a building under construction, the site must have a concrete foundation in place. Abbreviated UC. Rate: A measurement expressed as a percentage of the total amount of physically vacant space divided by the total amount of existing inventory. Under construction space generally is not included in vacancy calculations. Vacant Space: Space that is not currently occupied by a tenant, regardless of any lease obligation that may be on the space. Vacant space could be space that is either available or not available. For example, sublease space that is currently being paid for by a tenant but not occupied by that tenant, would be considered vacant space. Likewise, space that has been leased but not yet occupied because of finish work being done, would also be considered vacant space. Weighted Average Rental Rate: Rental rates that are calculated by factoring in, or weighting, the square footage associated with each particular rental rate. This has the effect of causing rental rates on larger spaces to affect the average more than that of smaller spaces. The weighted average rental rate is calculated by taking the ratio of the square footage associated with the rental rate on each individual available space to the square footage associated with rental rates on all available spaces, multiplying the rental rate by that ratio, and then adding together all the resulting numbers. Unless specifically specified otherwise, rental rate averages include both Direct and Sublet available spaces. Year Built: The year in which a building completed construction and was issued a certificate of occupancy. YTD: Abbreviation for Year-to-Date. Describes statistics that are cumulative from the beginning of a calendar year through whatever time period is being studied. D CoStar Industrial Statistics 2017 CoStar Group, Inc.

6 Overview Third Quarter 2017 St. Louis St. Louis s Decreases to 5.2% Net Absorption Positive 2,010,616 SF in the Quarter The St. Louis Industrial market ended the third quarter 2017 with a vacancy rate of 5.2%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 2,010,616 square feet in the third quarter. Vacant sublease space decreased in the quarter, ending the quarter at 164,734 square feet. Rental rates ended the third quarter at $4.48, an increase over the previous quarter. There was 3,738,968 square feet still under construction at the end of the quarter. Absorption Net absorption for the overall St. Louis Industrial market was positive 2,010,616 square feet in the third quarter That compares to positive 1,450,982 square feet in the second quarter 2017, positive 764,758 square feet in the first quarter 2017, and positive 1,447,874 square feet in the fourth quarter The Flex building market recorded net absorption of positive 32,120 square feet in the third quarter 2017, compared to positive 189,574 square feet in the second quarter 2017, positive 160,386 in the first quarter 2017, and negative (98,373) in the fourth quarter The Warehouse building market recorded net absorption of positive 1,978,496 square feet in the third quarter 2017 compared to positive 1,261,408 square feet in the second quarter 2017, positive 604,372 in the first quarter 2017, and positive 1,546,247 in the fourth quarter The Industrial vacancy rate in the St. Louis market area decreased to 5.2% at the end of the third quarter The vacancy rate was 5.9% at the end of the second quarter 2017, 6.3% at the end of the first quarter 2017, and 5.9% at the end of the fourth quarter Flex projects reported a vacancy rate of 8.0% at the end of the third quarter 2017, 8.2% at the end of the second quarter 2017, 9.4% at the end of the first quarter 2017, and 10.4% at the end of the fourth quarter Warehouse projects reported a vacancy rate of 5.0% at the end of the third quarter 2017, 5.8% at the end of second quarter 2017, 6.0% at the end of the first quarter 2017, and 5.6% at the end of the fourth quarter Largest Lease Signings The largest lease signings occurring in 2017 included: the 624,150-square-foot lease signed by GEODIS at Gateway East 624 in the Illinois market; the 348,480-square-foot deal signed by Amazon at Hazelwood Logistics Center 3 in the North St Louis County market; and the 300,000-square-foot lease signed by Fairfield Manufacturing at North Broadway Distribution Center in the St Louis City market. Sublease The amount of vacant sublease space in the St. Louis market decreased to 164,734 square feet by the end of the third quarter 2017, from 213,355 square feet at the end of the second quarter There was 224,109 square feet vacant at the end of the first quarter 2017 and 511,441 square feet at the end of the fourth quarter St. Louis s Flex projects reported vacant sublease space of 3,600 square feet at the end of third quarter 2017, down from the 98,000 square feet reported at the end of the second Rates by Building Type % Flex Warehouse Total Market 14% 12% Rate 10% 8% 6% 4% 2% 0% q q q q q q q q q q q q q q q q 2017 CoStar Group, Inc. CoStar Industrial Statistics 1

7 St. Louis Third Quarter 2017 Overview quarter There were 98,000 square feet of sublease space vacant at the end of the first quarter 2017, and 229,000 square feet at the end of the fourth quarter Warehouse projects reported increased vacant sublease space from the second quarter 2017 to the third quarter Sublease vacancy went from 115,355 square feet to 161,134 square feet during that time. There was 126,109 square feet at the end of the first quarter 2017, and 282,441 square feet at the end of the fourth quarter Rental Rates The average quoted asking rental rate for available Industrial space was $4.48 per square foot per year at the end of the third quarter 2017 in the St. Louis market area. This represented a 1.6% increase in quoted rental rates from the end of the second quarter 2017, when rents were reported at $4.41 per square foot. The average quoted rate within the Flex sector was $9.44 per square foot at the end of the third quarter 2017, while Warehouse rates stood at $4.20. At the end of the second quarter 2017, Flex rates were $9.25 per square foot, and Warehouse rates were $4.16. Deliveries and Construction During the third quarter 2017, no new space was completed in the St. Louis market area. This compares to five buildings totaling 1,270,721 square feet that were completed in the second quarter 2017, four buildings totaling 1,897,933 square feet completed in the first quarter 2017, and 1,381,780 square feet in four buildings completed in the fourth quarter There were 3,738,968 square feet of Industrial space under construction at the end of the third quarter Some of the notable 2017 deliveries include: Premier 370 Bus Park 2001 Reckitt Benckiser, a 714,780-square-foot facility that delivered in first quarter 2017 and is now 100% occupied, and Wentzville Logistics Center, a 629,000-square-foot building that delivered in second quarter 2017 and is now 100% occupied. The largest projects underway at the end of third quarter 2017 were Gateway Commerce Center E, a 593,940-squarefoot building with 0% of its space pre-leased, and Monsanto Expansion - Phase 1, a 590,000-square-foot facility that is 100% pre-leased. Inventory Total Industrial inventory in the St. Louis market area amounted to 271,037,056 square feet in 6,232 buildings as of the end of the third quarter The Flex sector consisted of 16,488,031 square feet in 581 projects. The Warehouse sector consisted of 254,549,025 square feet in 5,651 buildings. Within the Industrial market there were 1,486 owner-occupied buildings accounting for 79,410,718 square feet of Industrial space. Reports compiled by: Jeff Warnock, CoStar Research Manager U.S. Comparison Past 9 Quarters 7.0% St. Louis United States 6.0% 5.0% Rate 4.0% 3.0% 2.0% 1.0% 0.0% q 2 CoStar Industrial Statistics 2017 CoStar Group, Inc.

8 Markets Third Quarter 2017 St. Louis CoStar Submarket Clusters & Submarkets In analyzing metropolitan areas, CoStar has developed geographic designations to help group properties together, called Markets, Submarket Clusters and Submarkets. Markets are the equivalent of metropolitan areas, or areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Markets are then divided into Submarket Clusters, which are core areas within a metropolitan area that are known to be competitive with each other in terms of attracting and keeping tenants. Markets are then further subdivided into smaller units called Submarkets, which serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted competitive set, or peer group. Submarket Clusters Central County Ind Illinois Ind North St Louis County Ind South St Louis County Ind St Charles County Ind St Louis City Ind West St Louis County Ind Submarkets Hanley Ind Innerbelt E of 170 Ind Innerbelt W of 170 Ind Illinois Ind Airport Ind Earth City Ind North County Ind Fenton Ind South County Ind St Charles County Ind St Louis City North Ind St Louis City South Ind Chesterfield/Hwy-40 Ind West County Ind Westport Ind 2017 CoStar Group, Inc. CoStar Industrial Statistics 3

9 St. Louis Third Quarter 2017 Inventory & development Historical Deliveries Deliveries Average Delivered SF 6.6 Millions of SF * Future deliveries based on current under construction buildings. Construction Activity Markets Ranked by Under Construction RBA Under Construction Inventory Average Bldg Size Market # Bldgs Total RBA Preleased SF Preleased % All Existing U/C North St Louis County Ind 4 1,097,278 29, % 69, ,319 St Charles County Ind 4 926, , % 35, ,687 West St Louis County Ind 3 915, , % 36, ,000 Illinois Ind 2 641, % 57, ,770 South St Louis County Ind 1 158, % 35, ,400 Central County Ind % 30,878 0 St Louis City Ind % 41,706 0 Totals 14 3,738,968 1,247, % 43, ,069 Recent Deliveries Leased & Un-Leased SF in Deliveries Since 2013 Future Deliveries Preleased & Un-Leased SF in Properties Scheduled to Deliver 5.0 Leased Un-Leased 3,000 Preleased Un-Leased ,500 Millions of SF Thousands of SF 2,000 1,500 1, q 4 CoStar Industrial Statistics 2017 CoStar Group, Inc.

10 Inventory & development Third Quarter 2017 St. Louis Historical Construction Starts & Deliveries Square Footage Per Quarter Starting and Completing Construction 4.0 Construction Starts 3.7 Deliveries Millions of SF q q q q Recent Deliveries by Project Size Breakdown of Year-to-Date Development Based on RBA of Project Building Size # Bldgs RBA SF Leased % Leased Avg Rate Single-Tenant Multi-Tenant < 50,000 SF 3 71,250 29, % $ ,250 50,000 SF - 99,999 SF % $ ,000 SF - 249,999 SF 1 243, , % $ , ,000 SF - 499,999 SF 1 348, , % $ ,480 >= 500,000 SF 4 2,505,683 1,967, % $ ,000 1,876,683 Recent Development by Tenancy Comparison Based on RBA Developed for Single & Multi-Tenant Use Based on Total RBA 2017 Deliveries Currently Under Construction By Building Type By Tenancy Type 20% 1% 6% 54% 46% 80% 99% 94% Multi Single Multi Single Flex Warehouse Multi Single 2017 CoStar Group, Inc. CoStar Industrial Statistics 5

11 St. Louis Third Quarter 2017 Inventory & development 6 CoStar Industrial Statistics 2017 CoStar Group, Inc.

12 Inventory & development Third Quarter 2017 St. Louis 2017 CoStar Group, Inc. CoStar Industrial Statistics 7

13 St. Louis Third Quarter 2017 Figures at a Glance Flex Market Statistics Third Quarter 2017 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Central County Ind 83 2,017, , , % 36, $8.27 Illinois Ind ,331 29,211 29, % 115, $10.06 North St Louis County Ind 71 3,104, , , % 157, $10.34 South St Louis County Ind 49 1,071,978 66,597 66, % 1, $11.71 St Charles County Ind 85 2,319,781 56,400 56, % 48, $7.49 St Louis City Ind 94 2,003,277 99,607 99, % $8.88 West St Louis County Ind 144 5,046, , , % 22, ,000 $8.87 Totals ,488,031 1,321,026 1,324, % 382, ,000 $9.44 Warehouse Market Statistics Third Quarter 2017 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Central County Ind ,587, , , % (253,188) 0 0 $5.56 Illinois Ind ,051,544 1,104,710 1,154, % 726, , ,540 $3.89 North St Louis County Ind ,121,034 3,265,265 3,265, % 1,552,065 1,129,474 1,097,278 $4.30 South St Louis County Ind ,028, , , % 98, ,400 $5.81 St Charles County Ind ,110, , , % 1,071,636 1,343, ,750 $5.12 St Louis City Ind 1,709 73,192,488 5,417,543 5,417, % 759, $2.89 West St Louis County Ind ,457, , , % (111,521) 50,000 30,000 $6.34 Totals 5, ,549,025 12,538,796 12,699, % 3,844,276 3,168,654 2,853,968 $4.20 Total Industrial Market Statistics Third Quarter 2017 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Central County Ind ,604,996 1,056,245 1,056, % (217,187) 0 0 $5.85 Illinois Ind ,975,875 1,133,921 1,183, % 842, , ,540 $4.06 North St Louis County Ind ,226,014 3,887,829 3,887, % 1,709,271 1,129,474 1,097,278 $4.61 South St Louis County Ind ,100, , , % 99, ,400 $6.10 St Charles County Ind ,430, , , % 1,120,567 1,343, ,750 $5.21 St Louis City Ind 1,803 75,195,765 5,517,150 5,517, % 760, $3.02 West St Louis County Ind ,503, , , % (89,053) 50, ,000 $6.84 Totals 6, ,037,056 13,859,822 14,024, % 4,226,356 3,168,654 3,738,968 $ CoStar Industrial Statistics 2017 CoStar Group, Inc.

14 Figures at a Glance Third Quarter 2017 St. Louis Flex Submarket Statistics Third Quarter 2017 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Airport Ind ,887 89,202 89, % 1, $7.09 Chesterfield/Hwy-40 Ind 37 2,133,457 19,367 22, % (10,722) 0 885,000 $9.25 Earth City Ind 44 1,993, , , % 155, $10.97 Fenton Ind ,329 63,297 63, % (920) 0 0 $12.05 Hanley Ind ,239 6,624 6, % 5, $10.14 Illinois Ind ,331 29,211 29, % 115, $10.06 Innerbelt E of 170 Ind , , , % 5, $8.76 Innerbelt W of 170 Ind ,648 33,451 33, % 24, $7.16 North County Ind 7 353, % $0.00 South County Ind ,649 3,300 3, % 2, $9.74 St Charles County Ind 85 2,319,781 56,400 56, % 48, $7.49 St Louis City North Ind , % 2, $4.00 St Louis City South Ind 62 1,358,633 99,607 99, % (1,495) 0 0 $9.50 West County Ind ,827 1,318 1, % $9.29 Westport Ind 79 2,279, , , % 32, $8.73 Totals ,488,031 1,321,026 1,324, % 382, ,000 $9.44 Warehouse Submarket Statistics Third Quarter 2017 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Airport Ind ,473, , , % 1,683, , ,278 $4.23 Chesterfield/Hwy-40 Ind 121 3,812, , , % (65,359) 35,000 0 $8.74 Earth City Ind ,213,316 1,702,608 1,702, % (12,494) 0 130,000 $4.39 Fenton Ind 199 8,165, , , % 79, ,400 $5.59 Hanley Ind 253 5,799, , , % (158,044) 0 0 $6.54 Illinois Ind ,051,544 1,104,710 1,154, % 726, , ,540 $3.89 Innerbelt E of 170 Ind 213 9,399,806 85,907 85, % (13,236) 0 0 $5.73 Innerbelt W of 170 Ind ,388, , , % (81,908) 0 0 $4.85 North County Ind 151 7,434,210 1,014,058 1,014, % (118,560) 537,753 0 $4.25 South County Ind 257 8,863, , , % 19, $6.27 St Charles County Ind ,110, , , % 1,071,636 1,343, ,750 $5.12 St Louis City North Ind ,763,341 3,372,291 3,372, % 729, $2.86 St Louis City South Ind ,429,147 2,045,252 2,045, % 30, $2.95 West County Ind 119 4,108,792 10,526 10, % 26,962 15,000 0 $6.85 Westport Ind ,536, , , % (73,124) 0 30,000 $5.65 Totals 5, ,549,025 12,538,796 12,699, % 3,844,276 3,168,654 2,853,968 $4.20 Total Industrial Submarket Statistics Third Quarter 2017 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Airport Ind ,231, , , % 1,684, , ,278 $4.29 Chesterfield/Hwy-40 Ind 158 5,945, , , % (76,081) 35, ,000 $8.87 Earth City Ind ,207,298 2,235,970 2,235, % 142, ,000 $5.03 Fenton Ind 223 8,960, , , % 78, ,400 $5.98 Hanley Ind 285 6,374, , , % (152,382) 0 0 $6.84 Illinois Ind ,975,875 1,133,921 1,183, % 842, , ,540 $4.06 Innerbelt E of 170 Ind 230 9,931, , , % (7,836) 0 0 $6.18 Innerbelt W of 170 Ind ,299, , , % (56,969) 0 0 $5.10 North County Ind 158 7,787,321 1,014,058 1,014, % (118,560) 537,753 0 $4.25 South County Ind 282 9,139, , , % 21, $6.35 St Charles County Ind ,430, , , % 1,120,567 1,343, ,750 $5.21 St Louis City North Ind ,407,985 3,372,291 3,372, % 731, $2.86 St Louis City South Ind ,787,780 2,144,859 2,144, % 29, $3.33 West County Ind 147 4,742,619 11,844 11, % 27,462 15,000 0 $7.00 Westport Ind ,815, , , % (40,434) 0 30,000 $6.28 Totals 6, ,037,056 13,859,822 14,024, % 4,226,356 3,168,654 3,738,968 $ CoStar Group, Inc. CoStar Industrial Statistics 9

15 St. Louis Third Quarter 2017 Figures at a Glance 10 CoStar Industrial Statistics 2017 CoStar Group, Inc.

16 Leasing Activity Third Quarter 2017 St. Louis Historical Rental Rates Based on Quoted Rental Rates $14.00 Flex Warehouse Total Market $12.00 Dollars/SF/Year $10.00 $8.00 $6.00 $4.00 $2.00 $ q q q q q q q q by Available Space Type by Building Type Percent of All Vacant Space in Direct vs. Sublet Percent of All Vacant Space by Building Type St. Louis United States St. Louis United States 1% 4% 9% 14% 91% 86% 99% 96% Direct Sublet Direct Sublet Flex Warehouse Flex Warehouse U.S. Rental Rate Comparison Based on Average Quoted Rental Rates Future Space Available Space Scheduled to be Available for Occupancy* $7.00 St. Louis United States $ Dollars/SF/Year $5.00 $4.00 $3.00 $2.00 Millions $1.00 $ q q q q * Includes Under Construction Space 2017 CoStar Group, Inc. CoStar Industrial Statistics 11

17 St. Louis Third Quarter 2017 Leasing Activity Select Top Industrial Leases Based on Leased Square Footage For Deals Signed in 2017 Building Submarket SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company 1 Gateway East 624 Illinois Ind 624,150 2nd GEODIS ProVenture Cushman & Wakeeld 2 Hazelwood Logistics Center 3 Airport Ind 348,480 2nd Amazon N/A JLL 3 Gateway East 520 Illinois Ind 306,090 2nd Unknown Tenant N/A Cushman & Wakeeld 4 North Broadway Distribution Center St Louis City North Ind 300,000 1st Faireld Manufacturing N/A CBRE, Inc. 5 Union Seventy Center Bus Park - Main St Louis City North Ind 295,142 1st Triad N/A Hilliker Corporation 6 Hazelwood Logistics Center 2 Airport Ind 270,980 2nd Quiet Logistics N/A JLL 7 Hazelwood Logistics 4 Airport Ind 143,000 1st Bunzl Distribution N/A JLL Rider Trail S Earth City Ind 142,831 1st Lou Fusz Soccer Club N/A Sansone Group 9 Hazelwood Logistics 4 Airport Ind 100,241 2nd Amazon N/A JLL Shoreline Dr Earth City Ind 91,497 1st Unknown Tenant N/A JLL 11 Earth City Business Park Earth City Ind 90,045 3rd UPS Direct Deal CBRE, Inc Corporate Woods Trl* Earth City Ind 67,848 3rd ADS Logistics Co, LLC N/A CBRE, Inc. 13 Buske I Illinois Ind 60,000 1st Unknown Tenant CBRE, Inc. CBRE, Inc. 14 DukePort V* Earth City Ind 52,000 1st Merric, Inc. N/A CBRE, Inc Manchester Rd West County Ind 51,696 3rd Unknown Tenant N/A Gershman Commercial Real Estate 16 Earth City Industrial Center #6 Earth City Ind 51,200 1st Unknown Tenant N/A Cushman & Wakeeld 17 Elm St. & Hwy 370 East St Charles County Ind 50,000 2nd Unknown Tenant N/A Cushman & Wakeeld 18 Brown Campus #2 Airport Ind 43,055 1st Biomerieux Direct Deal JLL Trade Center Blvd Chestereld/Hwy-40 Ind 40,300 3rd Unknown Tenant N/A NAI DESCO 20 St. Louis Commerce Center I St Louis City North Ind 40,036 3rd Unknown Tenant N/A Cushman & Wakeeld Market St St Louis City South Ind 40,000 3rd Team 3 Group / Global Import Solutions N/A Hawk Distribution Services, LLC 22 Corporate 44 Industrial Park Bldg 2 Fenton Ind 40,000 1st Unknown Tenant N/A Altus Properties 23 Park 370 Business Center I* North County Ind 38,018 3rd Jon Don Super Stores N/A Block Hawley Commercial Real Estate 24 Commerce Center at Park 370 North County Ind 32,800 2nd Unknown Tenant N/A JLL Frost Ave Airport Ind 32,000 2nd Flat World Logistics Inc. Newmark Grubb Zimmer Lee & Associates Commercial Real Es Rock Hill Industrial Ct Hanley Ind 31,936 2nd Parties and Props Event Production Schlay Corporation CBRE, Inc. 27 NorthPark Business Center I North County Ind 30,750 2nd SNAPP Direct Deal JLL 28 Brown Campus #2 Airport Ind 30,652 1st Coastal Business Supplies N/A JLL Earth City Expy Earth City Ind 30,225 3rd Jon Don, LLC N/A Block Hawley Commercial Real Estate 30 Earth City Industrial Center 7 Earth City Ind 30,000 1st Unknown Tenant N/A Cushman & Wakeeld Rider Trail S Earth City Ind 30,000 3rd Unknown Tenant N/A CBRE, Inc Hunt Ave St Louis City South Ind 29,900 3rd Unknown Tenant N/A Hilliker Corporation 33 Lambert Pointe A Airport Ind 28,057 1st Retrievex Direct Deal Block Hawley Commercial Real Estate Prairie Dupont Dr Illinois Ind 27,470 1st Unknown Tenant N/A BarberMurphy Group 35 Lambert Pointe D Airport Ind 26,460 1st Stroco Manufacturing N/A Block Hawley Commercial Real Estate 36 Commerce Center at Park 370 North County Ind 26,400 1st ICP NAI DESCO JLL 37 Hazelwood Logistics Center 1 Airport Ind 25,891 2nd Unknown Tenant N/A JLL 38 Mid County #9 Innerbelt E of 170 Ind 21,297 3rd Comfy Sacks Hermann London CBRE, Inc Weber Rd South County Ind 21,166 1st Unknown Tenant N/A Hilliker Corporation 40 Lakefront I Earth City Ind 20,028 2nd Unknown Tenant N/A Cushman & Wakeeld * Renewal 12 CoStar Industrial Statistics 2017 CoStar Group, Inc.

18 Deliveries, Absorption & C e n t r a l C o u n t y M a r k e t MARKET HIGHLIGHTS - Flex & Warehouse Third Quarter 2017 St. Louis Delivered SF Absorption SF 7.0% % % 4.0% 3.0% 2.0% Percent Vacant (0.100) 1.0% (0.200) q q q q q q q q q q q q q q q 0.0% Vacant Space Quoted Rental Rates 1.20 Direct SF Sublet SF $ Dollars/SF/Year $6.00 $5.00 $4.00 $3.00 $ $ $0.00 Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates q ,604,996 1,056, % 26, $ q ,604,996 1,082, % (154,264) $ q ,604, , % (88,953) $ q ,604, , % 61, $ q ,604, , % 28, $ q ,604, , % 61, $ q ,604, , % 6, $ q ,604, , % 376, , $ q ,525,996 1,293, % 52, ,000 $ q ,525,996 1,345, % (154,408) ,000 $ q ,525,996 1,191, % 20, ,000 $ q ,525,996 1,212, % 89, ,000 $ q ,525,996 1,301, % 122, ,000 $ q ,525,996 1,424, % 175, ,000 $ q ,525,996 1,600, % 342, $ q ,528,846 1,945, % 98, $ CoStar Group, Inc. CoStar Industrial Statistics 13

19 St. Louis Third Quarter 2017 Deliveries, Absorption & I l l i n o i s M a r k e t MARKET HIGHLIGHTS - Flex & Warehouse (0.200) (0.400) Delivered SF Absorption SF q q q q q q q q q q q q q q q 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Percent Vacant Vacant Space Quoted Rental Rates 2.50 Direct SF Sublet SF $4.20 $ Dollars/SF/Year $4.00 $3.90 $3.80 $3.70 $ $3.50 Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates q ,975,875 1,183, % 730, ,540 $ q ,975,875 1,914, % (64,126) ,540 $ q ,975,875 1,850, % 176, , ,540 $ q ,330,475 1,380, % 237, , ,000 $ q ,809,495 1,097, % 786, ,213,980 $ q ,809,495 1,884, % 939, ,540, ,580 $ q ,268,945 1,283, % 15, ,540,550 $ q ,268,945 1,299, % (155,923) ,540,550 $ q ,258,115 1,132, % 17, ,498,080 $ q ,258,115 1,149, % 1,091, ,083, ,830 $ q ,174,978 1,157, % 88, ,083,137 $ q ,174,978 1,246, % 516, , ,083,137 $ q ,993,978 1,581, % 268, ,137 $ q ,993,978 1,850, % 550, ,000 $ q ,993,978 2,400, % 231, , ,000 $ q ,795,205 2,433, % (203,669) ,773 $ CoStar Industrial Statistics 2017 CoStar Group, Inc.

20 Deliveries, Absorption & N o r t h S t L o u i s C o u n t y M a r k e t MARKET HIGHLIGHTS - Flex & Warehouse Third Quarter 2017 St. Louis (0.200) (0.400) (0.600) (0.800) Delivered SF Absorption SF q q q q q q q q q q q q q q q 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Percent Vacant Vacant Space Quoted Rental Rates Direct SF Sublet SF $4.65 $ $ Dollars/SF/Year $4.50 $4.45 $4.40 $4.35 $4.30 $ $4.20 Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates q ,226,014 3,887, % 600, ,097,278 $ q ,226,014 4,488, % 439, , ,097,278 $ q ,634,293 4,335, % 669, , ,688,999 $ q ,096,540 4,467, % 833, , ,678,324 $ q ,250,740 4,455, % 212, ,383,553 $ q ,250,740 4,667, % 931, ,122, ,383,553 $ q ,127,962 4,475, % (309) ,546,778 $ q ,127,962 4,475, % 472, , ,546,778 $ q ,209,701 4,030, % (92,622) 1 150, ,265,751 $ q ,059,660 3,787, % (77,293) ,802 $ q ,059,660 3,710, % (189,687) ,027 $ q ,059,660 3,520, % (672,054) ,986 $ q ,059,660 2,848, % 859, $ q ,059,660 3,707, % (99,794) $ q ,059,660 3,607, % 454, , $ q ,837,160 3,839, % 736, ,500 $ CoStar Group, Inc. CoStar Industrial Statistics 15

21 St. Louis Third Quarter 2017 Deliveries, Absorption & S o u t h S t L o u i s C o u n t y M a r k e t MARKET HIGHLIGHTS - Flex & Warehouse (0.100) (0.200) Delivered SF Absorption SF q q q q q q q q q q q q q q q 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Percent Vacant Vacant Space Quoted Rental Rates Direct SF Sublet SF Dollars/SF/Year $6.80 $6.70 $6.60 $6.50 $6.40 $6.30 $6.20 $6.10 $ $ $ $5.70 Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates q ,100, , % (413) ,400 $ q ,100, , % (17,826) ,400 $ q ,100, , % 118, ,400 $ q ,100, , % 68, ,400 $ q ,100, , % (22,027) $ q ,100, , % 73, $ q ,100, , % 97, $ q ,100, , % 18, $ q ,100,613 1,001, % (104,103) $ q ,100, , % (26,739) $ q ,100, , % (77,618) $ q ,100, , % 211, $ q ,100,613 1,004, % (57,541) $ q ,100, , % 596, $ q ,100,613 1,543, % 27, $ q ,100,613 1,570, % 227, $ CoStar Industrial Statistics 2017 CoStar Group, Inc.

22 Deliveries, Absorption & S t C h a r l e s C o u n t y M a r k e t MARKET HIGHLIGHTS - Flex & Warehouse Third Quarter 2017 St. Louis (0.200) (0.400) Delivered SF Absorption SF q q q q q q q q q q q q q q q 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Percent Vacant Vacant Space Quoted Rental Rates 1.40 Direct SF Sublet SF $ $ Dollars/SF/Year $5.30 $5.20 $5.10 $ $4.90 Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates q ,430, , % (147,311) ,750 $ q ,430, , % 1,242, , ,750 $ q ,801,044 1,203, % 25, , ,255,750 $ q ,086, , % 52, ,718,530 $ q ,146, , % 52, , ,343,780 $ q ,008, , % 69, ,481,780 $ q ,008, , % 124, ,780 $ q ,008, , % (23,113) ,000 $ q ,008, , % 41, $ q ,008, , % 30, $ q ,008, , % (18,677) $ q ,008, , % 92, , $ q ,926, , % 606, , ,844 $ q ,426, , % 83, ,844 $ q ,426, , % 52, ,844 $ q ,426,420 1,018, % 74, ,000 $ CoStar Group, Inc. CoStar Industrial Statistics 17

23 St. Louis Third Quarter 2017 Deliveries, Absorption & S t L o u i s C i t y M a r k e t MARKET HIGHLIGHTS - Flex & Warehouse Delivered SF Absorption SF 14.0% % % 8.0% 6.0% 4.0% Percent Vacant (0.200) 2.0% (0.400) q q q q q q q q q q q q q q q 0.0% Vacant Space Quoted Rental Rates Direct SF Sublet SF $3.10 $3.08 $ Dollars/SF/Year $3.04 $3.02 $3.00 $2.98 $2.96 $ $ $2.90 Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates q 1,803 75,195,765 5,517, % 936, $ q 1,803 75,195,765 6,454, % 24, $ q 1,805 75,843,221 7,125, % (200,682) $ q 1,805 75,843,221 6,924, % 52, , $ q 1,804 75,828,221 6,962, % 59, ,000 $ q 1,804 75,828,221 7,022, % 348, , ,000 $ q 1,804 75,896,150 7,438, % 13, ,000 $ q 1,804 75,896,150 7,451, % 32, ,000 $ q 1,804 75,896,150 7,484, % 557, ,000 $ q 1,809 76,458,763 8,604, % 475, , $ q 1,815 76,780,611 9,401, % (268,753) ,000 $ q 1,817 76,869,180 9,221, % 158, ,000 $ q 1,817 76,869,180 9,379, % 217, ,000 $ q 1,819 76,931,656 9,659, % (85,045) ,000 $ q 1,823 77,077,868 9,721, % (166,183) $ q 1,826 77,124,380 9,601, % (132,421) $ CoStar Industrial Statistics 2017 CoStar Group, Inc.