Market Report. Busy summer as the Charleston commercial real estate recovery continues O F F I C E I N D U S T R I A L R E T A I L

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1 O F F I C E I N D U S T R I A L R E T A I L Market Report G R EATE R CHAR LESTON AR EA Significant Transactions: 174 Meeting Street, Charleston, Ground Lease for a 52,000 SF Office Building to Holder Properties (Reid Davis, Lee & Associates Charleston) 917 Commerce Circle, Hanahan, 25,560 SF Industrial building leased to Nanoscreen, LLC (Thomas G. Buist, Jr., J. Ryan Welch, R. Milton Thomas, III, Lee & Associates Charleston) 4969 Centre Pointe Drive, North Charleston, 7,117 SF of Office space leased to Accelera Solutions, Inc. (Robert H. Nuttall, Jr., Pete Harper, Lee & Associates Charleston) 2531 Savannah Highway, West Ashley, $810,000 sale of a 5,469 commercial building on 1.7 acres to Southern Grace Associates, LLC (R. Milton Thomas, III, Lee & Associates Charleston) 2401 Mall Drive, North Charleston, $1,350,000 sale of a 6,867 SF Picadilly Restaurant (Chris Koepenick, Lee & Associates Charleston) Market Indicators OCCU PANCY J U LY 2012 Busy summer as the Charleston commercial real estate recovery continues While many are focused on the national political forefront and the continuing instability of the world financial markets, commercial real estate in Charleston has seen a dramatic increase in activity over the summer which is historically a quieter period. Despite the increased activity, conversion rates and consistency in trends are still low. Most transactions are remaining volatile until the very end and are viewed under a microscope by the decision makers and anyone involved with the financing. What appeared to be an uptick in the past twelve months isolated to multifamily, industrial, and distressed property seems to have carried over to all sectors to include more leasing volume. While a good portion of the leasing volume is related to companies simply relocating, there is a trend of positive absorption that will continue to chip away at the vacancies. Sales and sale prices have been and will continue to be sporadic. There are still plenty of bank-owned and foreclosure properties which will allow buyers to capitalize on these historically low prices, which will keep sellers of most product types in an undesirable position. Prices must be low to get buyers interested. Interest rates are at an alltime low which continues to help the buyers that can qualify for financing. Overall, we expect things to continue to slowly track towards a healthier market. Charleston remains a very desirable place to live and work. The commercial real estate market will remain complicated, but the team at Lee & Associates is more than capable of keeping it simple for you. Let us show you how we put People First; Properties Second. Advantage: Lee! 3Q11 1Q12 ABSOR PTION 3Q12 3Q11 1Q12 R E N TA L R AT E 3Q12 3Q11 1Q12 3Q12

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5 Lee & Associates Service Line 3 Solid areas of Expertise in a recovering Economy 1. Brokerage The brokers of Lee & Associates serve a select group of Charleston clients with comprehensive leasing, sales and corporate service skills. All Lee & Associates brokers are dedicated to superior client service, and will represent our clients interests with proven expertise and the utmost integrity, whether for landlords or tenants, buyers or sellers. From office, retail, warehouse and industrial, to land site selection and corporate services, Lee & Associates brokers are committed to results. That s one more way we put People First, Properties Second. 2. Management Lee & Associates currently manages a large portfolio of commercial properties for clients who own office buildings and retail centers, as well as several commercial property regimes. We are also capable of providing corporate services for clients who own properties in multiple states. We are one of the largest third-party property managers in Charleston. We have achieved our present level of success through an absolute commitment to client satisfaction. Client satisfaction means removing the headaches of commercial property ownership. It means managing property and protecting the investment as if it were our own. We handle dozens of details, large and small, including physical maintenance, tenant relations, fiscal reporting, and so much more. 3. Development Lee & Associates stands out among Charleston s commercial property developers. Through many years of varied experience of property development in the Charleston real estate market, we have mastered the fine details. We anticipate the bumps in the road. This allows us to offer our commercial clients an unsurpassed level of personal customer service. Property development entails high stakes and high expectations, and it requires a unswerving commitment to superior service and processes. Lee & Associates property development experience, our commitment to superior service and our desire to always do things better have paved the way to success in the Charleston market. Past satisfied clients include Emery Worldwide, Applied Industrial Technologies, EDO Corporation, ITT and Linq Industrial Fabrics. Find out what we can do for you.

6 Robert H. Nuttall, Jr. SIOR, CPM Principal R. Milton Thomas, III CCIM, SIOR Principal Reid P. Davis CCIM, SIOR Principal Will Sherrod CCIM Chris Koepenick CCIM Gordon Geer Alex DeSeta Pete Harper Jack Owens CCIM Thomas G. Buist, Jr. SIOR J. Ryan Welch 126 Seven Farms Drive, Suite 110, Charleston, SC Phone (843) Fax (843)