>> Vacancy Falls To Lowest Rate Ever

Research & Forecast Report San Gabriel VALLEY INDUSTRIAL Accelerating success. >> Vacancy Falls To Lowest Rate Ever Key Takeaways Market Indicators Relative to prior period Forecast Construction Rental Rate > Vacancy rates have decreased 10 basis points to 1.1%; the lowest the vacancy rate ever in the San Gabriel Valley. Vacancy > Sales and leasing activity totaled 1,444,500, broken out into 5 sales (247,700 ) and 45 leases (1,196,800 ). > Average asking lease rates held steady at $0.68 P NNN. Rents have been steadily increasing as vacancy rates are at historic lows. > Net absorption totaled 297,500 for the quarter, the 27th concecutive quarter of growing industrial demand. > There remains 1,635,600 of space under construction. The San Gabriel Valley is a tight infill market with few oportunities to develop additional industrial space. Net Absorption Summary Statistics San Gabriel Valley, Vacancy Rate 1.1% -10 BPS Change from Q1 17 (Basis Points) Net Absorption 297,500 Construction Completions 0 Under Construction 1,635,600 Asking Rents San Gabriel Valley, San Gabriel Industrial Market San Gabriel Valley Industrial Market Average Asking Rent $0.68 P NNN Change from Q2 16 +$0.05 ($) The San Gabriel Valley consists of 31 cities and 400 square miles, with over 1.8 million residents. International trade, especially with the Pacific Rim, continues to be a vital aspect of the growing economy. The San Gabriel Valley market has surpassed the previous market peak in terms of rents. Exceptionally low vacancy rates and rising rental rates are leading many tenants to consider purchasing their real estate. Y.O.Y. Change (%) +7.9% Labor Force Los Angeles County 12-mo Employment Growth (%) 12-mo Actual Employment Change Construction Manufacturing Transportation, Trade & Utilities 5.3% -1.5% -0.4% +7,000-5,600-3,500

Vacancy > The vacancy rate has decreased 10 basis points to 1.1% as market conditions continue to tighten. > Vacancy remains tightest in the San Gabriel sub market at 0.4% and highest in the Foothill Freeway market at 1.6%. > Forecast: Future quarters will see more industrial space brought to the market. It is expected this will have little impact on the vacancy rate as the San Gabriel Valley remains one of the most sought after markets in all of the Los Angeles Basin. Absorption and Leasing Activity > Industrial demand reported 297,500 of positive net absorption. Industrial demand has increased for the previous 27 consecutive quarters. > Sales and leasing activity totaled 1,444,500 this quarter. There is a growing shortage of property for sale, limiting the amount of net absorption that can take place. > Forecast: Absorption will likely be higher in future quarters as recently completed buildings are absorbed by the growing businesses in the region. Rental Rates Historical Vacancy v. Rents San Gabriel Valley Q2 13-17 $ P PER MONTH (NNN) Net Absorption by Submarket San Gabriel Valley Q2 17 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 300,000 250,000 200,000 150,000 275,200 RENTS VACANCY 8% 7% 6% 5% 4% 3% 2% 1% 0% % VACANT (TOTAL) > Average asking rents have remained stable at $0.68 P NNN. Asking rents have hit their highest point and will continue to increase as long as market conditions remain favorable. > Asking rents are highest ($0.74 P NNN) in the Foothill Freeway submarket and are lowest in the Industry sub market ($0.63 P). > Forecast: Rents have continued to press upward, blowing past their previous peak and will continue to rise in future quarters. Tenants can expect to pay a premium for all types of industrial space and those who signed leases 5 years ago can expect to their rent to increase roughly 30% upon renewal. This is the primary reason why tenants in the San Gabriel Valley choose to own their property and be insulated from fluctuating market conditions. 100,000 50,000 0 12,400 9,900 INDUSTRY FOOTHILL FREEWAY SAN GABRIEL Historical Sales & Leasing Activity San Gabriel Valley Q2 13-17 (MILLIONS) 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2

Construction > There were no new construction completions this quarter and there remains 1,635,600 of space remaining under construction. > Land remains at a premium, with industrial developable land topping over 1.2 million per acre. Rising industrial rents and limited availability will lead to higher land prices in future quarters. > Forecast: As rental rates and sales prices continue to rise in the San Gabriel Valley, there is increased pressure to develop and reposition functionally obsolete industrial space. Historical Net Absorption & Construction Completions San Gabriel Valley Q2 13-17 (MILLIONS) 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 NET ABSORPTION CONSTRUCTION COMPLETIONS Investment Trends 0.1 0.0 > Cap rates continue to remain tight in Los Angeles County, averaging 4.9% in. > Forecast: There has been increased investor focus on fully leased industrial assets in prime infill locations. Consequently, we expect more investment sales to occur in future quarters, driving up sales prices and further compressing cap rates. Outlook > Tight market conditions, limited development and rising industrial rents are expected to persist in the San Gabriel Valley industrial marketplace. The surge in rents is prompting many users to consider buying their properties, however the available inventory is insufficient to meet demand. New projects that completed this quarter will likely be leased or sold in short order, leading to further decreases in the vacancy rate. Market conditions will continue to remain tight as the major industrial drivers of the San Gabriel Valley, import / export businesses, food manufacturing and life sciences, continue to expand. Investment Trends Chart San Gabriel Valley Q2 13-17 Unemployment Rate San Gabriel Valley May 2017 4.8% 4.7% 4.6% 4.5% 4.4% 4.3% 4.2% 4.1% 4.0% 3.9% 3.8% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 4.1% Average Price Per sf 4.7% Average Cap Rate 4.4% $180 $160 $140 $120 $100 $80 $60 $40 $20 United States California Los Angeles County $0 3

Market Description Submarket Map The San Gabriel Valley industrial market comprises 156.2 million square feet, and represents 12 percent of the total industrial space in buildings measuring 10,000 square feet and greater within the Los Angeles Basin. It includes a mix of newer and older buildings, 54 percent of which were built in 1980 or later. Half (50.3%) of the total space is contained in big-box buildings measuring over 100,000 square feet, with the balance (44.6%) in small to medium-sized buildings. The area has a significant concentration of firms in the high-tech sector and import/ export-related businesses. RECENT TRANSACTIONS & MAJOR DEVELOPMENTS San Gabriel Valley Industrial Market SALES ACTIVITY PROPERTY ADDRESS SIZE SALE PRICE PRICE P BUYER SELLER 488 Parriott City of Industry 84,700 $14.5 Million $171 P Renna Family Partnership CRPR Parriott, LLC 4185 Temply, El Monte 42,900 $7.9 Million $185 P AG & H, LLC The Gill Corporation 1941 Mission, Pomona 40,700 $7.1 Million $174 P Zoe Ents, LLC PSIP Chi Pomona, LLC 4185 Temple, El Monte 30,200 $5.8 Million $191 P JTMB LLC The Gill Corporation LEASING ACTIVITY PROPERTY ADDRESS LEASED LEASE TYPE BLDG TYPE LESSEE LESSOR 4545 Brooks, Montclair 129,900 Direct - New Distribution Anheuser - Busch, LLC 4545 Brooks LLC 3963 Workman, City of Industry 105,400 Sublease Distribution Logistic Edge, LLC Michael Kors Inc. 20035 Walnut, City of Industry 95,900 Direct - New Distribution Goodman Distribution ProLogis 341 Baldwin, City of Industry 46,800 Direct - New Light Fortune Seasons Corp. Amrapur Overseas, Inc. MAJOR DEVELOPMENTS PROJECT DEVELOPER SIZE SUBMARKET STATUS ESTIMATED COMPLETION 825 Ajax, City of Industry Bridge Development 429,900 Industry Under Construction Q3 2017 12359 Lower Azusa, Arcadia Yellow Iron 328,800 Foothill Freeway Under Construction Q3 2017 4

INDUSTRIAL OVERVIEW San Gabriel INDUSTRIAL Valley OVERVIEW San Gabriel Valley Industrial Market Q4 2015 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 SAN GABRIEL 10,000-19,999 452 6,021,900 0 0 0.5% 0.0% 1.1% - - 16,200 1 16,200 44,100 (33,000) -33,000 $0.79 20,000-39,999 212 5,744,200 0 0 0.9% 0.9% 3.3% - - - - - 36,900-36,800 $0.65 40,000-69,999 76 3,879,100 0 0 0.0% 0.0% 0.5% - - - - - 0-0 $0.63 70,000-99,999 15 1,163,800 0 0 0.0% 3.7% 2.2% 73,200 1 - - 40,700 81,400 42,900 106,400 0.62 100,000-249,999 17 2,549,500 0 0 0.0% 0.0% 6.4% - - - - - 178,900-164,300 N/A 250,000-499,999 3 1,006,000 0 0 0.0% 0.0% 0.0% - - - - - 0-0 N/A 500,000+ 1 800,000 0 0 0.0% 0.0% 0.0% - - - - - 0-0 N/A Subtotal 776 21,164,500 0 0 0.4% 0.4% 2.2% 73,200 1 16,200 1 89,400 438,390 9,900 274,500 $0.72 FOOTHILL FREEWAY 10,000-19,999 408 5,613,600 0 0 0.8% 1.0% 1.8% - - 44,600 3 44,600 58,900 14,200 14,200 $0.85 20,000-39,999 208 5,456,600 0 30,600 1.1% 1.9% 4.6% - - 45,500 2 45,500 65,900 45,500 45,500 $0.72 40,000-69,999 87 4,280,000 0 47,300 1.4% 1.4% 3.5% - - - - - 52,800 - -58,600 $0.69 70,000-99,999 21 1,636,600 0 85,600 0.0% 0.0% 4.4% - - 96,600 2 96,600 211,900-115,300 N/A 100,000-249,999 22 2,715,300 0 258,100 6.8% 5.0% 10.3% - - 10,500 1 10,500 22,100 (47,300) -47,300 $0.69 250,000-499,999 6 1,706,100 0 328,800 0.0% 0.0% 0.0% - - 84,200 1 84,200 84,200-0 N/A 500,000+ 0 0 0 0 - - - - - - - - 0-0 N/A Subtotal 752 21,408,200 0 750,400 1.6% 1.7% 4.0% - - 281,400 9 281,400 495,800 12,400 69,100 $0.74 INDUSTRY 10,000-19,999 798 11,198,300 0 0 0.1% 0.5% 1.4% 10,100 1 162,500 12 172,600 310,300 39,600 33,800 $0.75 20,000-39,999 549 15,240,700 0 86,800 0.8% 1.3% 2.4% 31,200 1 147,800 7 179,000 422,600 73,400 183,800 $0.78 40,000-69,999 301 15,678,300 0 200,600 2.6% 3.0% 5.6% 48,500 1 114,300 4 162,800 493,900 158,700 158,500 $0.70 70,000-99,999 126 10,623,800 0 0 1.6% 3.3% 6.3% 84,700 1 123,000 4 207,700 580,400 183,700 81,000 $0.70 100,000-249,999 223 31,655,900 0 168,000 1.8% 1.2% 3.7% - - 336,100 7 336,100 1,100,500 (180,200) -315,500 $0.60 250,000-499,999 59 18,290,300 0 429,800 0.0% 0.0% 0.0% - - 15,500 1 15,500 15,500-0 $0.55 500,000+ 16 10,971,100 0 0 0.0% 0.0% 4.4% - - - - - 0-0 $0.42 Subtotal 2072 113,658,400 0 885,200 1.2% 1.3% 3.3% 174,500 4 899,200 35 1,073,700 2,923,200 275,200 141,600 $0.63 MARKET TOTAL 10,000-19,999 1658 22,833,800 0 0 0.4% 0.5% 1.4% 10,100 1 223,300 16 233,400 413,300 20,800 15,000 $0.77 20,000-39,999 969 26,441,500 0 117,400 0.9% 1.5% 3.4% 31,200 1 193,300 9 224,500 525,400 118,900 266,100 $0.76 40,000-69,999 464 23,837,400 0 247,900 2.0% 1.4% 2.8% 48,500 1 114,300 4 162,800 546,700 158,700 99,900 $0.72 70,000-99,999 162 13,424,200 0 85,600 1.3% 3.4% 6.5% 157,900 2 219,600 6 345,000 873,700 226,600 302,700 $0.70 100,000-249,999 262 36,920,700 0 426,100 2.0% 1.4% 4.4% - - 346,600 8 346,600 1,301,500 (227,500) -198,500 $0.61 250,000-499,999 68 21,002,400 0 758,600 0.0% 0.0% 0.0% - - 99,700 2 99,700 99,700-0 $0.57 500,000+ 17 11,771,100 0 0 0.0% 0.0% 4.1% - - - - - 0-0 $0.55 Totals 3,600 156,231,100 0 1,635,600 1.1% 1.2% 3.3% 247,700 5 1,196,800 45 1,444,500 3,857,400 297,500 485,200 $0.68 5

Definitions of key terms in this report Total Rentable Square Feet: Industrial space in buildings with 10,000 or more of industrial space. Includes speculative as well as owner-occupied buildings. Excludes Research & Development (R&D) buildings (industrial buildings with at least 30% office build-out, 3/1000 parking ratio and a high level of finish). Excludes space that is under-construction or renovation. Vacancy: Space in existing buildings that is 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. Availability: 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 and leased for all known transactions completed during the quarter. Excludes lease renewals. Excludes investment sale transactions. 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. Construction Completions: 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. 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 www. colliers.com/greaterlosangeles. 396 offices in 68 countries on 6 continents United States: 153 Canada: 29 Latin America: 24 Asia Pacific: 79 EMEA: 111 UNITED STATES: San Gabriel Valley Office License No. 01908231 17800 Castleton, Suite 495 City of Industry, Ca 91748 > $2.6 billion in annual revenue > 2.0 billion square feet under management > Over 15,000 professionals TEL: +1 909 605 9400 FAX: +1 909 937 6330 Under Construction: Includes buildings that are in some phase of construction, beginning with foundation work and ending with the issuance of a Certificate of Occupancy. HANS MUMPER Executive Managing Director Greater Los Angeles THOMAS GALVIN Research Analyst Research Services 6