HISTORICAL VACANCY VS RENTS. San Fernando Valley & Ventura County Industrial Market RENTS VACANCY 1Q10 1Q11 1Q12 1Q13 1Q14

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1 INDUSTRIAL SAN FERNANDO VALLEY & VENTURA COUNTY MARKET REPORT Positive Demand For Space Leads To A 4.% Vacancy Rate MARKET OVERVIEW MARKET INDICATORS - VACANCY 4.% AVAILABILTY 6.7% NET ABSORPTION +531,8 CONSTRUCTION 339,9 RENTAL RATE $.55 P NNN UNEMPLOYMENT 8.7% In, the San Fernando Valley & Ventura County industrial market recorded positive absorption (+531,8 square feet) for the second consecutive quarter. The total vacancy rate decreased 3 basis points from 4.3 percent last quarter to 4. percent in Q1. The availability rate was 6.7 percent. The total gross activity in Q1 was 2,224, square feet, a substantial increase from the 1,426,4 square feet recorded in Q The weighted average asking rental rates for direct space remained at $.55 per square foot, per month Triple Net (NNN) for a sixth consecutive quarter. Investment sales activity involved the following transactions: Oxnard St in Van Nuys was acquired by Rexford Industrial for $8,9, ($114 P), 51 Flynn Rd in Camarillo was acquired by TOLD Corporation for $5,99,775 ($15 P) and 291 Sturgis Road in Oxnard was acquired by Sherwin S & Lehrer K Trust for $2,775, ($96 P). Significant owner/user transactions included: 125 Foothill Blvd in Sylmar being acquired Edwards Family Trust for $9,99, ($13 P), 4725 Calle Alto in Camarillo being acquired by Hi- Temp Insulation for $6,125, ($91 P) and 263 Nordhoff St in Chatsworth being acquired by O & S Precision for $6,, ($119 P). MARKET TRENDS - >> Total vacancy rate decreases to nnn4.% HISTORICAL VACANCY VS RENTS Q HISTORICAL NET ABSORPTION & CONSTRUCTION COMPLETIONS V & Ventura County Industrial Market Q >> Weighted average asking rental rate nnnremains at $.55 P NNN >> Total gross activity increases nnn nnnto 2.2 million >> There was positive demand with +531,8 net absorption >> 339,9 in construction activity $ P PER MONTH (NNN) $.58 $.57 $.56 $.55 $.54 $.53 $.52 $.51 RENTS VACANCY 1Q1 1Q11 1Q12 1Q13 1Q14 6% 5% 4% 3% 2% 1% % % VACANT (TOTAL) 1,, 8, 6, 4, 2, (2,) (4,) (6,) (8,) (1,,) NET ABSORPTION CONSTRUCTION COMPLETIONS 1Q1 1Q11 1Q12 1Q13 1Q14 1 Colliers International continuously refines its database. As a result, data reflected in this report may not be consistent with data reported in previous quarters.

2 MARKET REPORT INDUSTRIAL SAN FERNANDO VALLEY & VENTURA COUNTY LOS ANGELES COUNTY DEMOGRAPHICS >> POPULATION: 1,63,995 (214 Estimate) 1,423,669 (219 Projection) 3.57% (Growth ) >> HOUSEHOLD INCOME: $75,972 (Average) $53,125 (Median) >> JOB GROWTH: 2.1% (past 12 months) >> UNEMPLOYMENT RATE: 8.7% (as of February 213) VACANCY The total vacancy rate decreased to 4. percent, a decrease of 3 basis points. The vacancy rate has ranged from 4. percent to 4.7 percent in the past year. In terms of submarkets, the Conejo Valley recorded the lowest vacancy rate (1.4 percent) and the Simi Valley/Moorpark submarket recorded the highest vacancy rate (9.2 percent). In the San Fernando Valley vacancy was 2.9 percent; however, vacancy in Ventura County was 6.1 percent. A breakdown by building size illustrates that vacancy rates were highest in buildings greater than 1, square feet (5.3 percent), and lowest in buildings between 1, and 19,999 (2.7 percent). The total availability rate decreased to 6.7 percent, the lowest availability rate experienced in the past year. The availability rate has ranged from 6.7 percent to 7.7 percent in the past year. The Simi Valley/Moorpark submarket continues to maintain the highest rate of availability at 16.1 percent. The tightness of the Central Valley submarket continues to benefit landlords in that submarket. The availability rate in Central Valley was 3.1 percent. NET ABSORPTION In Q1, the market recorded positive absorption of 531,8 square feet, an indication of the strong demand for space evident in the market. Total gross activity recorded in Q1 was 2,224, square feet. The only submarkets to record negative absorption were the Santa Clarita Valley (-12,9 square feet) and Simi Valley/Moorpark (-29,2 square feet). The strongest submarket in Q1, was the East San Fernando Valley with postive 349,2 square feet of absorption. Major tenant move-ins in Q1 involved the following: Haas Automation moved into 14,1 square feet at 14 Statham Parkway in Oxnard, West Coast Customs moved into 4, square feet at 211 Empire Ave in Burbank and PWC Brands moved into 32,1 square feet at 9175 Eton Ave in Chatsworth. The strong sales and leasing activity is expected to further translate into positive demand for space in 214. UNEMPLOYMENT February 214 figures for nonfarm employment in Los Angeles County showed a recovering job market. Over the past 12 months, Los Angeles County has gained 86,1 jobs for an increase of 2.1 percent. This gain in employment lowered the unemployment rate to 8.7 percent compared VACANCY BY SUBMARKET NET ABSORPTION BY SUBMARKET 4, 349,2 % VACANT 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % 1.4% 1.5% CENTRAL VALLEY 2.5% EAST VALLEY 2.7% WEST VALLEY 5.6% SANTA CLARITA VALLEY 6.2% WEST VENTURA COUNTY 9.2% SIMI VALLEY/MOORPARK 3, 2, 1, (1,) (2,) (29,2) (12,9) SANTA CLARITA VALLEY SIMI VALLEY/MOORPARK 17,7 36,9 CENTRAL VALLEY 12,2 WEST VENTURA COUNTY 175,9 WEST VALLEY EAST VALLEY

3 MARKET REPORT INDUSTRIAL SAN FERNANDO VALLEY & VENTURA COUNTY INDUSTRIAL OVERVIEW EXISTING PROPERTIES CONSTRUCTION VACANCY AVAILABILITY ACTIVITY ABSORPTION RENTS Submarket/ Building Size Bldgs Total Inventory Completions Current Qtr Under Construction Vacancy Vacancy Prior Qtr Availability Sales Number of Activity Sales Lease Activity Number of Leases Total Gross Activity Current Qtr Total Gross Activity YTD Net Absorption Current Qtr Net Absorption YTD Weighted Avg Asking Lease Rates WEST VENTURA COUNTY SUBTOTAL 1,75 41,499,8 227,5 6.2% 6.4% 8.3% 82, , , 577, 12,2 12,2 $.53 SIMI VALLET/MOORPARK SUBTOTAL 273 1,66,6 9.2% 8.9% 16.1% 157, , 157, (29,2) (29,2) $.47 SANTA CLARITA VALLEY SUBTOTAL ,48,6 5.6% 5.% 8.1% 34,5 2 29, ,3 244,3 (12,9) (12,9) $.43 SUBTOTAL 221 7,764, 1.4% 1.6% 4.7% 19,5 1 13,8 5 33,3 33,3 17,7 17,7 $.72 WEST SAN FERNANDO VALLEY SUBTOTAL ,653,2 112,4 2.7% 3.3% 6.8% 81, , ,7 363,7 175,9 175,9 $.62 CENTRAL SAN FERNANDO VALLEY SUBTOTAL ,659, 1.5% 1.7% 3.1% 25, ,6 25,6 36,9 36,9 $.56 EAST SAN FERNANDO VALLEY SUBTOTAL 1,487 53,59,8 2.5% 3.2% 4.3% 277, , ,1 643,1 349,2 349,2 $.74 SAN FERNANDO VALLEY SUBTOTAL SUBTOTAL 2, ,87,6 112,4 2.9% 3.3% 5.4% 393,8 12 1,62,9 89 1,456,7 1,456,7 441,1 441,1 $.61 VENTURA COUNTY SUBTOTAL SUBTOTAL 1,984 59,924,4 227,5 6.1% 6.3% 9.2% 11, , ,3 767,3 9,7 9,7 $.52 MARKET TOTAL 1, - 19,999 2,119 29,997,3 2.7% 3.% 4.4% 92, 6 259, ,5 351,5 89, 89, $.69 2, - 39,999 1,494 4,276,8 112,4 2.6% 3.3% 5.1% 188, , 49 7,5 7,5 226,8 226,8 $.62 4, - 69, ,138, 4.% 3.6% 7.4% 118, ,8 33 5,9 5,9 (133,9) (133,9) $.58 7, - 99, ,57,3 92,7 4.4% 4.5% 7.5% 97, , ,4 316,4 11, 11, $.61 1, ,875,6 134,8 5.3% 5.9% 8.3% 354, ,7 354,7 338,9 338,9 $.51 TOTAL 4, ,795, 339,9 4.% 4.3% 6.7% 495,7 15 1,728, ,224, 2,224, 531,8 531,8 $.55 COLLIERS INTERNATIONAL P. 3

4 MARKET REPORT INDUSTRIAL SAN FERNANDO VALLEY & VENTURA COUNTY >> The tightness of the Central Valley submarket continues to benefit landlords in that submarket >> The amount of square footage under construction was 339,9 square feet in Q1 >> The breakdown of the activity in terms of sales versus leasing is as follows: 22% was sales activity and 78% was leasing activity to 1.2 percent a year ago. Year-over-year job gains were most significant in Professional and Business Services (27, jobs), Educational and Health Services (25,9 jobs) and Trade, Transportation, and Utilities (15,9 jobs). The largest decline in jobs was seen in Manufacturing (8,8). CONSTRUCTION The amount of square footage under construction was 339,9 square feet in Q1. The significant projects under construction are as follows: a 134,8 square foot warehouse for Allied Beverages in Ventura, a set of four industrial buildings on Nordhoff St and De Soto Ave in Chatsworth totaling 112,4 square feet, and a 92,7 square foot industrial building on Verdulera St in Camarillo. ACTIVITY Total gross activity increased 56 percent from 1,426,4 square feet reported last quarter to a figure of 2,224, square feet. The breakdown of the activity in terms of sales versus leasing showed: 22 percent in sales activity and 78% percent inleasing activity. Sales activity as a percentage of total gross activity has ranged from 21% to 41% for the past year. Total gross activity was strongest in The East San Fernando Valley submarket (643,1 square feet) and weakest in the Conejo Valley submarket (33, square feet). The highlights in Q1 were as follows: Haas Automation signed a lease for 14,1 square feet at 14 Statham Parkway in Oxnard, Spirent signed a lease for 84, square feet in Calabasas, Tecom Industries signing a renewal for 66,8 square feet at 375 Conejo Ridge Ave in Thousand Oaks, and Ricon signing a lease for 65,3 square feet at 1135 Aviation Place in San Fernando. RENTAL RATES The weighted average asking rental rate remained at $.55 P. Average asking rental rates were highest in the East San Fernando Valley submarket ($.74 P) and lowest in the Santa Clarita Valley submarket ($.43 P). Average asking rents were highest ($.69 P) for buildings in the 1, to 19,999 square foot range and lowest ($.51 P) for buildings greater than 1, square feet. Availability rates remain low (4.4%) for 1, to 19,999 square foot range buildings, thus landlords have been able to maintain an elevated level of asking rents in that size category. WEIGHTED AVERAGE ASKING LEASE RATES BY SUBMARKET GROSS ACTIVITY BY SUBMARKET $ P PER MONTH (NNN) $.8 $.7 $.6 $.5 $.4 $.3 $.2 $.1 $.43 $.47 $.53 $.56 $.62 $.72 $.74 7, 6, 5, 4, 3, 2, 1, 33,3 157, 25,6 244,3 577, 363,7 643,1 $. SANTA CLARITA VALLEY SIMI VALLEY/MOORPARK WEST VENTURA COUNTY CENTRAL VALLEY WEST VALLEY EAST VALLEY SIMI VALLEY/MOORPARK CENTRAL VALLEY SANTA CLARITA VALLEY WEST VALLEY WEST VENTURA COUNTY EAST VALLEY

5 MARKET REPORT INDUSTRIAL SAN FERNANDO VALLEY & VENTURA COUNTY OUTLOOK The San Fernando Valley & Ventura County industrial market began 214 on a positive note. Broad improvements in the economy are driving strong demand for space. The availability has been consistently decreasing, which could lead to an uptick in asking rents as tenants begin to lose negotiating leverage in a tighter market. The positive absorption trend is expected to continue throughout 214. MARKET DESCRIPTION The San Fernando Valley and Ventura County industrial market includes million of standard industrial space, and represents 15 percent of the total industrial space in buildings 1, square feet and greater in the Los Angeles Basin. It is a moderately mature market, with 68 percent of its space built more than 2 years ago. The market is oriented toward small- to medium-sized manufacturers and distributors, with only 32 percent of its space contained in big box buildings (1,+ ). HISTORICAL GROSS ACTIVITY Q UNEMPLOYMENT RATE United States, California & February 214 2,5, 1% 9% 8.5% 8.7% 2,, 1,5, 8% 7% 6% 7.% 5% 1,, 4% 3% 5, 2% 1% 1Q1 1Q11 1Q12 1Q13 1Q14 % UNITED STATES CALIFORNIA LOS ANGELES COUNTY RECENT TRANSACTIONS & MAJOR DEVELOPMENTS SALES ACTIVITY PROPERTY ADDRESS SIZE SALE PRICE PRICE P BUYER SELLER 125 Foothill Blvd, Sylmar 97,2 $9,99, $13 P Ben & Stewart Edwards 12% Group Investment Co Oxnard St, Van Nuys 78, $8,9, $114 P Rexford Industrial Chandler Associates 4725 Calle Alto, Camarillo 67,4 $6,125, $91 P Hi-Temp Insulation Camarillo Industrial 263 Nordhoff St, Chatsworth 5,6 $6,, $119 P O & S Precision Hackman Capital Avenue Stanford, Valencia 2,4 $2,1, $13 P Heartland Precision Fasteners JLM Corporation LEASING ACTIVITY PROPERTY ADDRESS LEASED LEASE TYPE BLDG TYPE LESSEE LESSOR 14 Statham Pky, Oxnard 14,1 New Warehouse Haas Automation Pacific Prime Properties 375 Conejo Ridge Ave, Thousand Oaks 66,8 Renewal Warehouse Tecom Industries Pacific Prime Properties 1135 Aviation Pl, San Fernando 65,3 New Warehouse Ricon Liberty Property Trust 7545 San Fernando Rd, Sun Valley 46, Renewal Warehouse Omega Cinema Trust Props Karapetian Family Trust 7911 Haskell Ave, Van Nuys 39,3 Renewal Warehouse Microfabrica KB Haskell Strathern LP MAJOR DEVELOPMENTS PROJECT DEVELOPER SIZE SUBMARKET STATUS ESTIMATED COMPLETION Nicolle Street, Ventura Reyes Holdings LLC 134,8 West Ventura County Under Construction Q4 214 Chatsworth Commerce Centre Oakdale LLC 112,4 West San Fernando Under Construction Q4 214 COLLIERS INTERNATIONAL P. 5

6 MARKET REPORT INDUSTRIAL SAN FERNANDO VALLEY & VENTURA COUNTY DEFINITIONS OF KEY TERMS USED IN THIS REPORT Total Rentable Square Feet: Industrial space in buildings with 1, or more of industrial space. Includes speculative as well as owner-occupied buildings. Excludes Research & Development (R&D) buildings (industrial buildings with at least 3% office build-out, 3/1 parking ratio and a high level of finish). Excludes space that is underconstruction or renovation. Direct Vacancy: Space in existing buildings that are vacant and immediately available during the quarter for direct lease or for sale, plus space that is vacant but not available for direct lease or sublease (for example, that is being held for a future commitment). Total Vacancy: Space in existing buildings that are vacant and immediately available during the quarter for direct lease, for sublease or for sale, plus space that is vacant but not available for direct lease or sublease. Total Available: All space that is being currently marketed for occupancy, includes space which may be currently occupied or which may be under construction or renovation. Net Absorption: Net change in occupied square feet from one period to the next (includes the impact of change in vacant space available for sublease). Gross Activity: Square feet sold or leased for all known transactions completed during the quarter. Excludes lease renewals. Excludes investment sale transactions. Added (Net): Total square feet added during the quarter via construction completions, including renovated space returned to market, less total square feet taken off-market due to demolitions or conversions. Under Construction/Renovation: Includes buildings that are in some phase of construction, beginning with foundation work and ending with the issuance of a Certificate of Occupancy. Also includes buildings that are under going substantial renovation. Technical Note Colliers International is continuously refining its database. The data shown in the historical tables and graphics in this report have been adjusted to take into account these changes in the database. This report has been prepared by Colliers International for general information only. Information contained herein has been obtained from sources deemed reliable and no representation is made as to the accuracy thereof. Colliers International does not guarantee, warrant or represent that the information contained in this document is correct. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This report and other research materials may be found on our website at offices in 62 countries on 6 continents United States: 14 Canada: 42 Latin America: 2 Asia Pacific: 195 EMEA: 85 >> $2. billion in annual revenue >> 1.12 billion square feet under management >> Over 13,5 professionals UNITED STATES: V & Ventura County Office License No Ventura Boulevard, Suite J Encino, CA TEL FAX ABRAHAM, JEFF Senior Associate DEGRINIS, JOHN R. Senior Executive Vice President, SIOR DUROSS, PATRICK B. Associate Vice President ERICKSON, JOHN A. Senior Vice President MIDZI, TINASHE Regional Analyst Research Services MUMPER, HANS Executive Managing Director PUTNAM, RICK Managing Director Western Region Capital Markets STARITA, GIAN Vice President WEIRICK, BRENTON C. Senior Vice President Weighted Average Asking Rental Rates: Weighted by square feet available for direct lease. Data is based on Triple Net rents, and excludes expenses such as taxes, insurance, maintenance, janitorial service and utilities. Reported on a monthly, per basis. Average Sales Price: Calculated using a straight average of actual sales transactions. Accelerating success. P. 6 COLLIERS INTERNATIONAL