Upstate, SC 1Q16. Industrial Market Report. Industrial. Upstate Economy in 1Q16* Industrial Sector in 1Q16. Trends for 1Q16

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1 Market Report The industrial market for the Upstate of South Carolina saw continued growth for the first quarter of While there was a positive net absorption of 1,024,708/SF, the Upstate industrial market also saw a decrease in asking rates for the first time since the second quarter of Average asking rental rates dropped from $3.62/SF in Q4 of 2015 to $3.57/SF in Q Vacancy largely remained steady at 7.5% while new construction continues to hover around 5.1 million square feet. Notable lease signings of large blocks of space include; Colgate- Palmolive Company moving into 306,000 SF at White Horse Rd Center, Sunland Logistics moving into 154,000 SF at 112 Hidden Lake Circle, and Otto Bock Polyurethane Technologies, Inc moving into 51,600 SF at 130 Caliber Ridge Dr. There were also some notable economic development announcements in the first quarter of Proper Polymers, an injection molding company servicing the automotive industry, announced they will building a second location in the Upstate of South Carolina. Their newly constructed 50,000 SF facility at the Matrix Business Park will create 87 new jobs though $15.45 million of capital investment. Roy Metals Finishing, a metal finishing company serving the automotive industry, announced plans to expand their existing facility at the Matrix Business Park. Their 87,000 SF expansion will create 40 new jobs through $16 million of capital investment. Overall, the first quarter of 2016 was positive. ±1.3 million square feet of speculative construction is still underway, asking rental rates are starting to settle, and absorption is still on the rise. We expect the rest of 2016 to show continued growth throughout the market. The Upstate of South Carolina has strong fundamentals needed to drive manufacturing and distribution business in the region which will lead to continued economic development announcements and absorption through the end of the year. NAIEF Division Upstate Economy in 1Q16* Total Population + 983,857 Total Households + 359,007 Median Household Income + $45,115 Total Labor Force^ 475,104 Unemployed^ 23,170 Unemployment Rate^ : 4.6% : 5.2% Anderson : 5.0% *Includes data for, and Anderson counties +US Census Bureau, 2010 Census & 2015 estimates ^scworks.org: February 2016 data Sector in 1Q16 Number of Buildings 4,098 Market Size (SF) 190,001,892 SF Overall Vacant Space (SF) 14,222,891 SF Overall Vacancy (%) 7.5% Direct Vacancy (SF) 14,191,611 SF Sublease Vacancy (SF) 31,280 SF Net Absorption 1,024,708 Average Asking Rental Rate ($/SF/Yr) $3.29 Source: CoStar Property as of 4/12/16. Does not include flex data. Trends for 1Q16 NET ABSORPTION CONSTRUCTION VACANCY RATE ASKING RATES

2 Market Report Submarket Overview: Below is a sampling from CoStar of the major industrial submarkets in the Upstate as of 4/12/16. For data on additional counties or submarkets, please send a request to marketing@naief.com. Submarkets # of Buildings Total RBA (SF) Vacant (%) Anderson Class A 6 421, % 0 $3.85 Class B 114 7,563, % 9,084 $3.18 Class C ,150, % 40,000 $2.74 All Classes ,260, % 49, Class A 31 3,131, % 438,000 $4.81 Class B ,324, % 41,775 $3.56 Class C 1,291 37,259, % 79,480 $3.14 All Classes 1,839 72,772, % 559,255 $3.56 Total Net Absorption (SF) Total Avg. Rate Class A 36 9,669, % 138,600 $4.17 Class B ,042, % 70,000 $3.30 Class C ,503, % 34,299 $2.89 All Classes 1,329 74,223, % 242,899 $3.30 Anderson

3 Market Report Flex Submarket Overview: Flex Submarkets # of Buildings Total RBA (SF) Vacant (%) Anderson Class A 1 111, % 0 N/A Class B , % (7,219) $8.56 Class C , % 0 $5.95 All Classes , % (7,219) $7.54 Class A 2 81, % 0 $11.87 Class B 144 2,656, % (8,295) $8.20 Class C 302 3,298, % 9,247 $6.80 All Classes 448 6,036, % 952 $7.75 Below is a sampling from CoStar of the major industrial flex submarkets in the Upstate as of 4/12/16. For data on additional counties or submarkets, please send a request to marketing@naief. Total Net Absorption (SF) Total Avg. Rate Class A 8 336, % 9,330 $5.75 Class B , % (930) $5.42 Class C , % 12,010 $5.91 All Classes 122 1,869, % 20,410 $5.68 Anderson Flex Flex Flex

4 Market Report / U.S. Vacancy Comparison (Past 7 Quarters) / U.S. Price/SF Comparison (Based on Building Sales of 15,000 SF and Larger) Vacancy Rate Dollars per SF / U.S. Cap Rate Comparison (Based on Building Sales of 15,000 SF and Larger) By Building Type Existing Inventory Comparison By Tenancy Type Cap Rate Percentage 95% 5% 73% 27% Warehouse Flex Single-Tenancy Multi-Tenancy Sampling of Top Transactions in 1Q16 *NAI Earle Furman Transaction Sales Graphs Source: CoStar Property 201 Brozzini Court RBA: 270,000 Sale Price: $17,100,000 Sale Date: 3/31/ New Cut Road RBA: 133,240 Sale Price: $4,500,000 Sale Date: 3/1/ Commerce Road* RBA: 58,245 Sale Price: $925,000 Sale Date: 3/23/ Asheville Highway Landrum RBA: 34,000 Sale Price: $675,000 Sale Date: 3/2/16 Leases 160 Lincoln School Road SF: 85,795 Tenant: Universal Packing & Sewing Supplies, Inc. 130 Caliber Ridge Drive* Greer SF: 51,600 Tenant: Otto Bock Polyurethane Technologies, Inc. 716 E. Fairfield Road - Bldg. 1 SF: 30,000 Tenant: Woodtex Products 119 McDougall Court Mauldin SF:15,000 Tenant: PACK-RATLLC

5 Market Report NAI Earle Furman Division John Baldwin, CCIM Glenn Batson Ford Borders, SIOR Principal & Alex Campbell Tom Daniel, CCIM Dan Dunn J. Earle Furman, Jr., SIOR Chairman & -in-charge Hunter Garrett, CCIM, SIOR Principal & Jon Good, SIOR CEO & Principal Grice Hunt, SIOR Principal & Kevin Pogue John Powell, CCIM About Us Towers Rice Solid Foundation. Proven Results. Stuart Smith Founded by J. Earle Furman in 1986, NAI Earle Furman is celebrating its 30th year as a leading full-service commercial real estate brokerage firm in the Upstate of South Carolina specializing in the office, industrial, investment and retail sectors. NAI Earle Furman offers a wide range of services including sales, leasing, development, site selection, consulting and property management. A partnership with NAI Global allows NAI Earle Furman to access a network of worldwide real estate connections and offer international commercial real estate services to Upstate clients, while retaining local personality and knowledge. John Staunton john@naief.com Tenant Representation Landlord Representation Market Analysis Financial Analysis Site Selection Lease Versus Own Analysis clay@naief.com age Services Due Diligence Consulting Lease Review and Renewal Services Tax Deferred Exchanges Development Land Acquisition and Disposition The firm has 80 team members and completed nearly 600 transactions in The Property Management team manages 5.5 million square feet of commercial space in North and South Carolina. Reports Prepared by: Sallie Smith Marketing & Research Specialist ssmith@naief.com Lauren Newton Marketing & Research Specialist lnewton@naief.com & Q Advisory Board cwilliams@naief.com The NAI Earle Furman team Contact Us: 101 E Washington Street Suite 400, South Carolina naiearlefurman.com