Continued market stability

Research & Forecast Report MINNEAPOLIS-ST. PAUL INDUSTRIAL Quarter 2, 2017 Continued market stability Strong absorption, historic low vacancy and steady construction Vacancy and absorption trends The industrial market in the Minneapolis- metro continues to be a highlight post-recession as vacancy continues to drop below historical levels. The current metro average vacancy rate is 6.8%, compared to a previous rate of 6.9% in Quarter One. Office warehouse maintains the lowest vacancy rate of our three main product types, with the others being bulk warehouse and office showroom/flex. In Quarter Two, over 450,000 square feet of multi-tenant space was absorbed, bringing the annual total above 600,000 square feet. The pace of annual absorption is behind the last three years but still expected to have a strong end-of-year figure. Bulk warehouse absorbed 300,000 square feet of new space this quarter, compared to 275,000 square feet for office showroom/flex, losing just over 115,000 square feet. The West/Northwest metro had the most absorption in Q2, but four of our five submarkets posted positive absorption numbers this quarter. Bulk warehouse continues to be the primary new construction type in the metro. Even with all the construction, there are still some large vacancies in new speculative buildings, which are holding the vacancy rate higher. This is especially true in the further reaches of the West/Northwest metro, including the cities of Rogers and Dayton. There is a solid demand for bulk distribution space, which should continue to absorb more of this new construction vacancy. The vacancy rate for bulk is expected to decrease through Q3, when several more buildings will be completed. The end-of-year vacancy rate projection is relatively flat, as new space added to the market counteracts new leasing activity. SF Absorbed Percent Vacant Quarterly Market Indicators Q2 2017 Relative to prior period Historical Vacancy (Direct) 20% 15% 10% 5% 0 Net Absorption (YTD) 4,000,000 3,000,000 2,000,000 1,000,000 0 (1,000,000) (2,000,000) (3,000,000) (4,000,000) VACANCY NET ABSORPTION RENTAL RATE 9.0% 8.6% 10.4% 1,410,063 1,355,744 (928,872) 13.1% 12.5% 11.5% (2,430,461) 10.5% 9.4% 8.6% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (Q2) 8.1% 2,011,292 1,369,692 1,677,707 914,877 1,261,325 2,958,812 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 7.2% 6.8% 2,473,488 631,862 2016 2017 (Q2) SUBSCRIBE TO OUR BLOG

Market Trends Q2 Absorption SF Absorbed Q2 Vacancy Percent Vacant 200,000 100,000 10 8 6 4 2 0 0 (100,000) (200,000) 167,050 Airport/South of the River 4.6% Airport/South of the River 158,987 Minneapolis North 6.0% Minneapolis North 118,130 Southwest 7.3% Southwest Market health is stable (159,030) East 6.6% East 172,141 West/ Northwest 9.4% West/ Northwest Expanding buyer pool continues investing The industrial investment market continues to remain strong after record years in 2015 and 2016. The first half of 2017 has seen a slight decline in total sales volume in the Minneapolis metro, but average sales price per square foot have reached near-historical highs. There continues to be an expanding buyer pool with significant capital to invest. The demand for industrial buildings is outpacing the supply of properties for sale, which drives competition when a property comes to market. In the hunt for yield, some larger funds are allocating more capital toward their real estate portfolio which adds competition to local and regional investors who have been raising more money due to strong performances in this cycle. There is also a strong demand from owner-users who are looking at buying in a very low vacancy, highly competitive leasing market. Bulk warehouse and office showroom buildings are still heavily location-driven in terms of value. Regardless of property type, we are seeing local, regional, national and international investors look at deals in the Minneapolis metro. The perceived strength and reliability of the local economy is a positive in bringing in outside capital. The three hallmarks of a steady industial market are strong absorption, historic low vacancy and steady new construction starts. The first half of 2017 has shown more of the same. Over 600,000 square feet of multi-tenant industrial space has been absorbed so far this year, with 800,000 square feet of completed construction as well. These are more or less average figures for six months going back over the last three to four years. The submarkets that saw the most positive absorption were the Airport/South and the Northwest. These two areas are also tops for year-to-date absorption and have been seeing significant construction activity. There were a number of large occupancy changes, including LDI consolidating operations in the West/Northwest which counted toward 180,000 square feet of absorption, Goodwill taking 125,000 square feet in the southwest and two tenants occupying 88,000 square feet of new construction space in the Minneapolis North submarket. There are no expected immediate changes that would drastically alter the market. As historical lows in vacancy continue, construction remains steady. But the construction figures are not spiking and overall metro vacancy is expected to remain sub-8% for the next year at least. As long as the debt markets remain relatively stable, there is no anticipated change in the industrial sales market. The year 2017 should end with total sales volume just under the high-watermark year of 2015 and see historical high rates per square foot. Construction starts are on the rise New construction has been a huge part of the industrial story for the last three years. During the recession and early recovery period, essentially zero new construction was done in the metro, which drove down vacancy rates. As the economy recovered, there simply was not enough available space for the local industrial market. Construction picked up heavily starting in 2012 with the majority of early projects being build-to-suit buildings. The options for leasing remained tight, so speculative projects began. Primary areas for new construction were well-located infill sites, examples include Roseville, Fridley and New Brighton. Developers have generally been relatively cautious in new construction, and while some buildings have not leased up as quickly as hoped, our metro vacancy remains below historical averages. This year has seen an increase in the number of new construction starts, represented by a second wave of new projects. While many of the best infill sights have seen new construction in previous years, the next tier of land parcels are now the leading choice for available sites. More buildings in Brooklyn Park along the Hwy-610 area and further south I-35 projects are now the top sights in town. We will see more construction starting in those areas in the coming 12 months. 2 Minneapolis- Research & Forecast Report Quarter 2 Industrial Colliers International

Submarket Quick Hits Airport/South of the River > Airport/South of the River holds the lowest vacancy rate of any submarket at 4.6%. > The three largest positive absorption vacancy changes were Manna Freight (42,000 square feet), Kendall Doors (40,000 square feet) and Silver Tree Plumbing (36,000 square feet) during Q2. > Eagan continues to be a top-performing city in the industrial market, as the city is home to 180,000 square feet of the whole submarket s 280,000 square feet year-to-date absorption. Minneapolis North Manna Freight This was the largest positive change in vacancy in the Airport/South of the River submarket in Q2. > Minneapolis North has seen a lot of development recently and yet maintains a vacancy rate below the metro average at 5.9%. Developments include the successful Northern Stacks and Midway Stadium Business Center. > Northern Stacks continues to be one of the most successful developments, as the speculative third building completed construction this quarter and is already two-thirds occupied. Both of Northern Stacks IV and V are now under construction as speculative projects. > Combined, Everlast Climbing Walls and Dero Bike Racks moved into nearly 100,000 square feet of the new Northern Stacks III Building in Fridley during Q2. > Other notable deals include PGW Auto Glass and Peets Coffee, who absorbed 25,000 square feet and 28,000 square feet, respectively. Northern Stacks Everest Climbing Walls and Dero Bike Racks absorbed 100,000 square feet at the Northern Stacks III Building. Southwest > The Southwest had the second highest vacancy rate in the metro at 6.9%. However, the Southwest is a different type of market with a higher proportion of high-finish showroom space compared to other submarkets. Showroom has a higher vacancy rate metro wide than any other product type. > The largest Southwest deal was Goodwill taking 125,000 square feet at the Lake Hazeltine Building in Chaska. The lease is for an expansion and creation of a third processing facility in the metro. > The Southwest gets the highest average asking rates in all three product types of any submarket in the metro. Much of the industrial space is located comparatively close into the metro and near housing in Eden Prairie, Bloomington and Minnetonka. > Another large change was a 50,000 square feet user Fountain Industries, who relocated from two hours south of the metro into Shakopee. The manufacturer cited growth opportunities as the reason for the location change. Fountain Industries New to the Twin Cities market, Fountain Industries moved into 50,000 square feet in Shakopee. Minneapolis- Research & Forecast Report Quarter 2 Industrial Colliers International 3

Submarket Quick Hits East > East had negative absorption this quarter, moving the vacancy rate to 6.5%. This is just under the metro average vacancy of 6.8% > The negative absorption can be attributed to several move-outs. Dero Bike Racks vacated space to move to Northern Stacks III in the Minneapolis North submarket. Koch Logistics vacated 77,000 square feet and North Country Produce left 65,000 square feet. Sojos was the largest positive move-in, occupying 88,000 square feet. The local pet food manufacturer completed a large expansion due to rapid growth. > East has the lowest vacancy rate of office showroom space in the metro, as much of the high-demand midway market falls in the East submarket. Staging Concepts A portable staging equipment company occupied 64,500 square feet of build-to-suit space in Brooklyn Park. West/Northwest > The West/Northwest submarket had the most absorption of all submarkets in Q2, but it still has the highest vacancy rate. > Much of the vacancy is due to the number of new speculative construction that has happened in the West/Northwest. The outer lying areas of Rogers and Otsego have been slower in activity, and there are a number of large vacancies there. > Projecting construction for the rest of the year, the West/ Northwest should see more activity and several new speculative buildings break ground. The majority of the new construction should center around Hwy-610 in Brooklyn Park. > There is over 700,000 square feet of speculative construction happening right now, even with large existing vacancies in the same submarket and product type. This shows how different the submarket can be, with significant leasing activity in the Brooklyn Park area leaving the Dayton/Rogers area somewhat struggling. NorthPark Business Center New construction in Brooklyn Park. 4 Minneapolis- Research & Forecast Report Quarter 2 Industrial Colliers International

Ramsey 94 Andover Ham 97 Lake 10 Albertville St. Michael Hanover Greenfield Maple Plain Minnetrista Mound 212 5 Spring Park Chaska 41 Rogers 55 Medina Orono Shorewood Excelsior Victoria Otsego Independence Corcoran Loretto Tonka Bay 12 169 Wayzata Minnetonka Deephaven Greenwood Chanhassen Elk River West/Northwest Maple Grove Plymouth 212 Dayton 62 494 Shakopee Champlin 610 694 Hopkins Eden Prairie Osseo Southwest Industrial Under Construction 169 169 Anoka New Hope Golden Valley St. Louis Park Edina 13 Crystal Brooklyn Park 100 Bloomington Brooklyn Center Coon Rapids Robbinsdale 35W 94 Minneapolis Richfield Spring Lake Park Fridley 35E 65 Blaine Mounds View New Brighton Columbia Heights Saint Anthony 55 Airport/ South of the River 77 Circle Pines Lexington Shoreview Arden Hills 35E 94 Eagan 13 Apple 3 Valley Roseville Lauderdale Columbus Minneapolis North Lino Lakes Vadnais Heights West Mendota Heights 35W Centerville North Oaks Little Canada Rosemount 35E Maplewood South Inver Grove Heights 55 North 52 55 61 Gem Lake Grant White Bear Lake Willernie Stillwater 694 Pine Springs 36 Woodbury Park Forest Lake Hugo Dellwood 10 Lake Elmo Oakdale 94 East Afton Cottage Grove Scandia 5 61 OVERALL MARKET > 2,513,942 sf under construction > 1,456,900 sf speculative > 1,185,642 sf BTS MINNEAPOLIS NORTH > 698,000 sf > 3 projects WEST/NORTHWEST > 868,600 sf > 4 projects SOUTHWEST > 523,342 sf > 4 projects ST. PAUL EAST > 80,000 sf > 1 project AIRPORT/SOUTH OF THE RIVER > 344,000 sf > 2 projects Industrial Under Construction PROPERTY NAME ADDRESS CITY SUBMARKET SF Uponor Addition 5925 148th St Apple Valley Airport/ South of the River 58000 9400 Decatur Dr 9400 Decatur Dr Brooklyn Park West/ Northwest 616000 Brooklyn Boulevard Industrial Center 8201 Brooklyn Blvd Brooklyn Park West/ Northwest 129000 IDI Distributors Expansion 8251 Audubon Rd Chanhassen Southwest 26962 RDO Dealership 11030 Holly Lane Dayton West/Northwest 51000 Northern Stacks IV 44 E Northern Stacks Dr Fridley Minneapolis North 177600 Launch Park Lakeville Phase I SE of 215th St W and Cedar Ave Lakeville Airport/ South of the River 286000 Clearwater Creek Business Park SW of Interstate 35E and County Road 14 Lino Lakes Minneapolis North 402000 8720 Eagle Creek Pkwy 8720 Eagle Creek Pkwy Savage Southwest 31680 Gateway South 2101 4th Ave E Shakopee Southwest 374700 1109 Stagecoach Rd - Phase II 1109 Stagecoach Rd Shakopee Southwest 90000 BridgePoint IV 425 Concord St S South Saint Paul St Paul East 80000 Northern Stacks V 42 E Northern Stacks Dr Fridley Minneapolis North 118400 NorthPark BC 2 10301 Xylon Avenue N. Brooklyn Park West/Northwest 201200 Minneapolis- Research & Forecast Report Quarter 2 Industrial Colliers International 5

6 Minneapolis- Research & Forecast Report Quarter 2 Industrial Colliers International

Spotlight Trend: Storage Is King In the Twin Cities metro, storage space is king. In today s consumer economy, people and businesses need space that is accessible and convenient. The demand for this type of space is becoming increasingly competitive as this trend continues to gain momentum throughout the metro. Whether space is needed for a store s merchandise, a contractor s tools or a consumer s excess collectables, storage space is a lucrative investment. Storage space is especially coveted in downtown and urban areas where the square footage of a residence s outside land is much less than its rural counterpart. Outside storage real estate at an all-time high Outside storage real estate is becoming difficult to come by in the Twin Cities metro as land becomes increasingly developed. This is leading tenants to look further outside of the metro for sufficient solutions to their storage needs. Many of the tenants searching for outside storage are having to go miles away from their desired location just to find a suitable spot to place equipment or materials. Business owners from across the country looking to store outside equipment often take into consideration a number of key variables. The city zoning ordinances must deem the land a form of industrialuse in order to store heavy machinery and outside equipment. In many cases, accessibility is hard to come by when the city or county government owns the existing right-of-way land near major highways. Local governments often are not interested in selling or leasing this type of land due to public opinion of the space. Additionally, larger acreage of outside land is often owned by multiple entities, creating a number of issues when attempting to buy or lease the space. In a recent transaction, a client who had experienced exponential growth was looking for a larger storage facility to accommodate their expansion plans in the Twin Cities metro. As with many tenants, they were hoping to stay centrally located near major interstates. Since their relocation to their new facility in Edina, the client has received multiple offers from interested buyers to purchase the facility due to its great location and high demand. Self-storage and the consumer economy Not only is outside storage real estate in high demand, but selfstorage in the United States has become a billion dollar business. According to IBISWorld, the estimated revenue of storage facilities in 2016 was $32.7 billion. Converting industrial properties and malls into mini-storage facilities has become a more frequent investment as our consumer economy continues to grow. Another reason why investors look for mini-storage opportunities is the fact that buildings are easy to build and require little staff to maintain. In contrast to outside storage, mini-storage investors are looking for locations that are in outside suburbs with growing populations. The high demand of mini-storage properties has created a strong market for investors who are considering property that is practical for storage. Nick Leviton Vice President Industrial Leasing DIRECT 952 897 7843 nick.leviton@colliers.com Minneapolis- Research & Forecast Report Quarter 2 Industrial Colliers International 7

Significant Lease, Sales and Construction Activity Lease Activity ADDRESS CITY LEASED SF TYPE TENANT SUBMARKET 2101 4th Ave E Shakopee 172,836 New My Pillow Southwest 222nd St W Lakeville 150,000 New Neenah (Menasha Packaging) Airport/ South of Market 15175 N 25th Ave Plymouth 96,470 New US Auto Force West/Northwest 201 Armour Ave Saint Paul 88,000 New Sojos St Paul East 8225 85th Ave Brooklyn Park 64,500 New Staging Concepts West/Northwest 985 Aldrin Dr Eagan 46,984 Great Lakes Coca Cola Airport/ South of Market 9600 54th Ave Plymouth 44,883 Renewal Isilon Systems West/Northwest 990 Apollo Rd Eagan 41,898 New Manna Freight Systems, Inc Airport/ South of Market 121 Cheshire Ln Minnetonka 40,000 New Merchology West/Northwest 2890 Centre Pointe Dr Roseville 34,412 New SVL Minneapolis North 8850 109th Ave Champlin 33,236 Renewal ApplianceSmart Factory Outlet West/Northwest 1005 Berkshire Ln Plymouth 31,201 West/Northwest 915 Blue Gentian Rd Eagan 27,521 Renewal Airport/ South of Market 7433 4th St Oakdale 26,640 Renewal The Fresh Group-Maglio St Paul East 5015 Cheshire Ln Plymouth 26,186 West/Northwest Sales Activity PROPERTY ADDRESS CITY BUYER SELLER PRICE PRICE PSF SF TE Connectivity 501 Shenandoah Dr Shakopee China Life ElmTree Funds 19,976,764.80 114 175,000 Silgan Containers 1080 Park Pl Shakopee Meritex Enterprises United Properties 18,725,000.00 63 299,600 General Mills Riverside Technical Center 330 University Ave SE Minneapolis CSM Corp, Doran Companies General Mills 15,800,000.00 43 366,600 7101 Winnetka Ave South 7101 Winnetka Ave S Brooklyn Park Second Harvest Heartland First Industrial Realty Trust 13,400,000.00 57 233,682 Korte Co 13201 N Wilfred Ln Rogers Scannell Properties Gramercy 10,872,050.00 32 341,040 River Road Business Center I & II 5301 E River Rd Fridley QT Commercial Hoyt Properties, Forum Equities LLC, MLG Capital 10,207,167.90 73 139,645 River Road Business Center III & IV 5201 E River Rd Anoka QT Commercial Forum Equities LLC, Hoyt Properties, MLG Capital 8,719,492.10 73 119,292 2750 145th Street West 2750 145th St W Rosemount STORE Capital (REIT) Industrial Opp Prtnrs 8,101,501.00 48 167,067 Edina Interchange I & II 6550 Wedgwood Rd N 5249-5251 W 73rd St 6550 Wedgwood Rd N Minneapolis HighBrook Investors CORE Realty Holdings 7,050,000.00 55 128,823 Maple Grove NIU Wedgwood LP TriGate Capital 5,869,878.60 89 65,720 8 Minneapolis- Research & Forecast Report Quarter 2 Industrial Colliers International

Under Construction PROPERTY ADDRESS CITY SUBMARKET SF Launch Park Lakeville Phase I SE of 215th St W and Cedar Ave Lakeville, MN 55044 Airport/ South of the River 286,000 Uponor Addition 5925 148th St Apple Valley, MN 55124-8197 Airport/ South of the River 58,000 Distribution Alternatives SW of Interstate 35E and County Road 14 Lino Lakes, MN 55110 Minneapolis North 402,000 Northern Stacks Bldg IV 44 E Northern Stacks Dr Fridley, MN 55421 Minneapolis North 177,600 Gateway South 2101 4th Ave E Shakopee, MN 55379 Southwest 374,700 1109 Stagecoach Rd - Phase II 1109 Stagecoach Rd Shakopee, MN 55379-9038 Southwest 90,000 8720 Eagle Creek Pkwy 8720 Eagle Creek Pkwy Savage, MN 55378 Southwest 31,680 IDI Distributors Expansion 8251 Audubon Rd Chanhassen, MN 55317 Southwest 26,962 BridgePoint IV 425 Concord St S South Saint Paul, MN 55075 St Paul East 80,000 9400 Decatur Dr 9400 Decatur Dr Brooklyn Park, MN 55445 West/ Northwest 500,000 TE Connectivity Largest Industrial Sale in Q2 - $19,976,000 1080 Park Place Second largest Industrial Sale in Q2 - $18,725,000 Minneapolis- Research & Forecast Report Quarter 2 Industrial Colliers International 9

Market Statistics SUBMARKET # OF BUILDINGS BUILDING SF DIRECT AVAILABLE SF DIRECT VACANT SF % DIRECT VACANT W/SUBLEASE VACANT SF % VACANT W/SUBLEASE LOW/HIGH ASKING RATE AVERAGE OPERATING ABSORPTION YTD ABSORPTION AIRPORT/SOUTH OF THE RIVER Bulk Warehouse 43 5,900,747 236,548 153,514 2.6% 153,514 2.6% $5.46-$9.01 $2.65 10,167 225,059 Office Showroom 53 3,482,606 412,923 315,296 9.05% 332,134 9.54% $4.68-$9.32 $4.09-16,248-52,013 Office Warehouse 137 9,580,800 472,831 395,657 4.13% 395,657 4.13% $4.73-$8.93 $3.30 173,131 105,837 Totals: 233 18,964,153 1,122,302 864,467 4.56% 881,305 4.65% $4.80-$9.09 $3.59 167,050 278,883 MINNEAPOLIS NORTH Bulk Warehouse 37 6,209,909 351,724 331,605 5.34% 331,605 5.34% $4.43-$7.43 $2.49 66,789 77,653 Office Showroom 56 3,665,212 393,159 399,555 10.9% 399,555 10.9% $4.79-$9.84 $3.77 15,078-31,730 Office Warehouse 237 17,365,202 1,052,953 862,869 4.97% 891,029 5.13% $4.77-$8.63 $2.93 77,120-35,802 Totals: 330 27,240,323 1,797,836 1,594,029 5.85% 1,622,189 5.96% $4.73-$8.89 $3.14 158,987 10,121 SOUTHWEST Bulk Warehouse 47 7,629,600 743,290 641,901 8.41% 641,901 8.41% $4.83-$8.87 $2.95 150,861 88,912 Office Showroom 103 7,158,237 908,029 704,395 9.84% 794,805 11.1% $5.10-$9.99 $4.47-27,294-41,296 Office Warehouse 206 14,547,366 1,133,179 684,492 4.71% 692,558 4.76% $5.02-$9.16 $3.73-5,437-685 Totals: 356 29,335,203 2,784,498 2,030,788 6.92% 2,129,264 7.26% $5.02-$9.45 $3.92 118,130 46,931 ST. PAUL EAST Bulk Warehouse 51 8,737,739 915,631 813,836 9.31% 813,836 9.31% $4.16-$6.53 $2.31-125,063-169,979 Office Showroom 34 2,502,023 231,437 161,770 6.47% 161,770 6.47% $5.23-$10.03 $5.04-31,404-30,288 Office Warehouse 161 12,966,532 888,893 584,724 4.51% 613,459 4.73% $4.59-$9.23 $3.43-2,563 188,072 Totals: 246 24,206,294 2,035,961 1,560,330 6.45% 1,589,065 6.56% $4.59-$8.83 $3.57-159,030-12,195 WEST/NORTHWEST Bulk Warehouse 96 12,713,645 1,719,548 1,583,840 12.46% 1,756,704 13.82% $4.58-$8.71 $2.79 194,841 62,619 Office Showroom 88 5,799,061 904,943 826,148 14.25% 934,605 16.12% $5.42-$9.89 $4.09-58,220-66,533 Office Warehouse 286 20,844,960 1,512,682 975,201 4.68% 999,701 4.8% $4.73-$8.99 $3.46 35,520 312,036 Totals: 470 39,357,666 4,137,173 3,385,189 8.6% 3,691,010 9.38% $4.90-$9.18 $3.50 172,141 308,122 TOTAL ALL MARKETS Bulk Warehouse 274 41,191,640 3,966,741 3,524,696 8.56% 3,697,560 8.98% $4.61-$8.23 $2.70 297,595 284,264 Office Showroom 334 22,607,139 3,198,756 2,407,164 10.65% 2,622,869 11.6% $5.09-$9.83 $4.24-118,088-221,860 Office Warehouse 1,027 75,304,860 5,060,538 3,502,943 4.65% 3,592,404 4.77% $4.79-$9.00 $3.40 277,771 569,458 Totals: 1,635 139,103,639 11,877,770 9,434,803 6.78% 9,912,833 7.13% $4.85-$9.14 $3.57 457,278 631,862 The above table is summarized data on multi-tenant office buildings greater than 20,000 square feet. Not included are single-tenant, owner-occupied, medical or government buildings. 10 Minneapolis- Research & Forecast Report Quarter 2 Industrial Colliers International

Market Statistics (Expanded Market) SUBMARKET # OF BUILDINGS BUILDING SF DIRECT AVAILABLE SF DIRECT VACANT SF % DIRECT VACANT W/SUBLEASE VACANT SF % VACANT W/SUBLEASE LOW HIGH AVERAGE OPERATING ABSORPTION YTD ABSORPTION AIRPORT/SOUTH OF THE RIVER Bulk Warehouse 274 17,469,120 518,836 385,380 2.21% 434,817 2.49% $4.88 $9.00 $3.16 18,232 219,950 Office Showroom 86 4,924,927 422,067 320,883 6.52% 337,721 6.86% $4.67 $9.30 $4.11-16,248-12,013 Office Warehouse 168 11,783,365 607,774 507,163 4.3% 507,163 4.3% $4.99 $8.74 $3.22 173,131 90,331 Totals: 528 34,177,412 1,548,677 1,213,426 3.55% 1,279,701 3.74% $4.86 $8.99 $3.57 175,115 298,268 MINNEAPOLIS NORTH Bulk Warehouse 402 21,331,815 905,918 389,458 1.83% 492,955 2.31% $4.60 $8.18 $2.97 54,649 65,513 Office Showroom 95 5,718,627 600,996 607,392 10.62% 607,392 10.62% $4.75 $9.74 $3.70 16,747-30,061 Office Warehouse 290 19,632,060 1,067,913 867,829 4.42% 895,989 4.56% $4.77 $8.64 $2.98 73,410-40,762 Totals: 787 46,682,502 2,574,827 1,864,679 3.99% 1,996,336 4.28% $4.73 $8.90 $3.19 144,806-5,310 SOUTHWEST Bulk Warehouse 323 24,474,768 1,035,602 702,625 2.87% 702,625 2.87% $4.98 $9.09 $3.21 145,586 200,385 Office Showroom 137 8,570,380 923,365 717,881 8.38% 808,291 9.43% $5.08 $10.02 $4.44-27,294-18,136 Office Warehouse 247 18,307,808 1,248,752 800,065 4.37% 808,131 4.41% $5.09 $9.26 $3.70 11,563 85,967 Totals: 707 51,352,956 3,207,719 2,220,571 4.32% 2,319,047 4.52% $5.06 $9.49 $3.87 129,855 268,216 ST. PAUL EAST Bulk Warehouse 282 18,843,098 974,371 850,576 4.51% 878,924 4.66% $4.81 $7.16 $2.34-126,480-165,581 Office Showroom 55 4,470,338 250,192 180,208 4.03% 180,208 4.03% $5.23 $10.78 $4.87-40,641-38,273 Office Warehouse 226 21,315,013 904,768 595,669 2.79% 624,404 2.93% $4.59 $9.23 $3.43-1,310 177,127 Totals: 563 44,628,449 2,129,331 1,626,453 3.64% 1,683,536 3.77% $4.76 $9.05 $3.52-168,431-26,727 WEST/NORTHWEST Bulk Warehouse 655 38,661,044 3,036,816 2,638,547 6.82% 3,004,335 7.77% $4.80 $7.91 $2.75 369,954 332,455 Office Showroom 138 8,356,050 1,002,136 904,116 10.82% 1,075,082 12.87% $5.36 $9.86 $4.06-47,553-54,426 Office Warehouse 378 25,658,353 1,823,363 1,250,975 4.88% 1,275,475 4.97% $4.80 $8.95 $3.44 162,123 452,515 Totals: 1171 72,675,447 5,862,315 4,793,638 6.6% 5,354,892 7.37% $4.94 $8.83 $3.39 484,524 730,544 TOTAL ALL MARKETS Bulk Warehouse 1936 120,779,845 6,471,543 4,966,586 4.11% 5,513,656 4.57% $4.82 $8.23 $2.88 461,941 652,722 Office Showroom 511 32,040,322 3,198,756 2,730,480 8.52% 3,008,694 9.39% $5.05 $9.88 $4.20-114,989-152,909 Office Warehouse 1309 96,696,599 5,652,570 4,021,701 4.16% 4,111,162 4.25% $4.86 $8.98 $3.38 418,917 765,178 Totals: 3756 249,516,766 15,322,869 11,718,767 4.7% 12,633,512 5.06% $4.90 $9.06 $3.52 765,869 1,264,991 The above table is summarized data on multi- and single-tenant office buildings greater than 10,000 square feet. Owner-occupied properties are also included. Not included are government or medical buildings. Minneapolis- Research & Forecast Report Quarter 2 Industrial Colliers International 11

403 offices in 68 countries on 6 continents United States: 153 Canada: 29 Latin America: 24 Asia Pacific: 86 EMEA: 111 BROKERAGE SERVICES CONTACT: William M. Wardwell SIOR Executive Vice President Brokerage Minneapolis- +1 952 897 7828 bill.wardwell@colliers.com Colliers International Minneapolis- 4350 Baker Road, Suite 400 Minnetonka, MN 55343 colliers.com/msp $2.6 billion in annual revenue SUBSCRIBE TO OUR BLOG 2 billion square feet under management 16,000 professionals and staff Copyright 2017 Colliers International. The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.