The CoStar Industrial Report

The CoStar Industrial Report F I R S T Q U A R T E R 2 0 1 4 National Industrial Market

National Industrial Market FIRST QUARTER 2014 NATIONAL Table of Contents Table of Contents.................................................................... A Methodology........................................................................ B Terms & Definitions.................................................................. C Market Highlights & Overview......................................................... 1 Inventory & Development Analysis..................................................... 14 Inventory & Development Analysis Select Top Deliveries Select Top Under Construction Properties Figures at a Glance by Building Type & Submarket Historical Figures at a Glance Leasing Activity Analysis............................................................. 28 Leasing Activity Analysis............................................................. 28 Select Top Lease Transactions Sales Activity Analysis............................................................... 30 Sales Activity Analysis Select Top Sales Transactions 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT A

NATIONAL FIRST QUARTER 2014 National Industrial Market Methodology The CoStar Industrial Report calculates Industrial statistics using CoStar Group's base of existing, under construction and under renovation Industrial buildings in each given metropolitan area. All Industrial building types are included, including warehouse, flex / research & development, distribution, manufacturing, industrial showroom, and service buildings, in both single-tenant and multi-tenant buildings, including owner-occupied buildings. CoStar Group's national database includes approximately 80.7 billion square feet of coverage in 3.5 million properties. All rental rates reported in the CoStar Industrial Report are calculated using the quoted rental rate for each property. CoStar regularly opens new markets to expand its geographic coverage which results in varying start dates for historical data. Due to differences in market start dates and a desire to show as long a historical timeframe as possible, only the following markets are included in the historical charts within this report: Atlanta, Austin, Baltimore, Boston, Broward County, Charlotte, Chicago, Cincinnati, Cleveland, Columbus, Dallas/Ft Worth, Dayton, Denver, Detroit, East Bay/Oakland, Houston, Indianapolis, Inland Empire (California), Jacksonville (Florida), Kansas City, Long Island (New York), Los Angeles, Memphis, Miami-Dade County, Nashville, Northern New Jersey, Orange (California), Orlando, Palm Beach County, Philadelphia, Phoenix, Pittsburgh, Raleigh/Durham, Sacramento, San Diego, San Francisco, Seattle/Puget Sound, South Bay/San Jose, St. Louis, Tampa/St Petersburg, Washington, and Westchester/ So Connecticut. When ever possible all markets are included to provide as broad as possible national coverage. The Market Highlights and Overview narrative includes all markets. For information on subscribing to CoStar s other products and services, please contact us at 1-877-7COSTAR, or visit our web site at www.costar.com Copyright 2012 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of the information contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness or completeness of the information. The publication is provided as is and CoStar expressly disclaims any guarantees, representations or warranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. CoStar Group, Inc. 1331 L ST NW Washington, DC 20005 (800) 204-5960 www.costar.com NASDAQ: CSGP B THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

National Industrial Market FIRST QUARTER 2014 NATIONAL Terms & Definitions Availability Rate: The ratio of available space to total rentable space, calculated by dividing the total available square feet by the total rentable square feet. Available Space: The total amount of space that is currently being marketed as available for lease in a given time period. It includes any space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date. Build-to-Suit: A term describing a particular property, developed specifically for a certain tenant to occupy, with structural features, systems, or improvement work designed specifically for the needs of that tenant. A build-to-suit can be leased or owned by the tenant. In a leased build-to-suit, a tenant will usually have a long term lease on the space. Buyer: The individual, group, company, or entity that has purchased a commercial real estate asset. Cap Rate: Short for capitalization rate. The Cap Rate is a calculation that reflects the relationship between one year s net operating income and the current market value of a particular property. The Cap Rate is calculated by dividing the annual net operating income by the sales price (or asking sales price). CBD: Abbreviation for Central Business District. (See also: Central Business District) Central Business District: The designations of Central Business District (CBD) and Suburban refer to a particular geographic area within a metropolitan statistical area (MSA) describing the level of real estate development found there. The CBD is characterized by a high density, well organized core within the largest city of a given MSA. Class A: A classification used to describe buildings that generally qualify as extremely desirable investment-grade properties and command the highest rents or sale prices compared to other buildings in the same market. Such buildings are well located and provide efficient tenant layouts as well as high quality, and in some buildings, one-of-a-kind floor plans. They can be an architectural or historical landmark designed by prominent architects. These buildings contain a modern mechanical system, and have above-average maintenance and management as well as the best quality materials and workmanship in their trim and interior fittings. They are generally the most attractive and eagerly sought by investors willing to pay a premium for quality. Class B: A classification used to describe buildings that generally qualify as a more speculative investment, and as such, command lower rents or sale prices compared to Class A properties. Such buildings offer utilitarian space without special attractions, and have ordinary design, if new or fairly new; good to excellent design if an older non-landmark building. These buildings typically have average to good maintenance, management and tenants. They are less appealing to tenants than Class A properties, and may be deficient in a number of respects including floor plans, condition and facilities. They lack prestige and must depend chiefly on a lower price to attract tenants and investors. Class C: A classification used to describe buildings that generally qualify as no-frills, older buildings that offer basic space and command lower rents or sale prices compared to other buildings in the same market. Such buildings typically have below-average maintenance and management, and could have mixed or low tenant prestige, inferior elevators, and/or mechanical/electrical systems. These buildings lack prestige and must depend chiefly on a lower price to attract tenants and investors. Construction Starts: Buildings that began construction during a specific period of time. (See also: Deliveries) Contiguous Blocks of Space: Space within a building that is, or is able to be joined together into a single contiguous space. Deliveries: Buildings that complete construction during a specified period of time. In order for space to be considered delivered, a certificate of occupancy must have been issued for the property. Delivery Date: The date a building completes construction and receives a certificate of occupancy. Developer: The company, entity or individual that transforms raw land to improved property by use of labor, capital and entrepreneurial efforts. Direct Space: Space that is being offered for lease directly from the landlord or owner of a building, as opposed to space being offered in a building by another tenant (or broker of a tenant) trying to sublet a space that has already been leased. Existing Inventory: The square footage of buildings that have received a certificate of occupancy and are able to be occupied by tenants. It does not include space in buildings that are either planned, under construction or under renovation. Flex Building: A type of building designed to be versatile, which may be used in combination with office (corporate headquarters), research and development, quasi-retail sales, and including but not limited to industrial, warehouse, and distribution uses. A typical flex building will be one or two stories with at least half of the rentable area being used as office space, have ceiling heights of 16 feet or less, and have some type of drive-in door, even though the door may be glassed in or sealed off. Full Service Rental Rate: Rental rates that include all operating expenses such as utilities, electricity, janitorial services, taxes and insurance. Gross Absorption: The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing Activity, which is the sum of all space leased over a certain period of time. Unless otherwise noted Gross Absorption includes direct and sublease space. Growth in Inventory: The change in size of the existing square footage in a given area over a given period of time, generally due to the construction of new buildings. Industrial Building: A type of building adapted for such uses as the assemblage, processing, and/or manufacturing of products from raw materials or fabricated parts. Additional uses include warehousing, distribution, and maintenance facilities. The primary purpose of the space is for storing, producing, assembling, or distributing product. Landlord Rep: (Landlord Representative) In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the owner/landlord is referred to as the Landlord Rep. Leased Space: All the space that has a financial lease obligation. It includes all leased space, regardless of whether the space is currently occupied by a tenant. Leased space also includes space being offered for sublease. Leasing Activity: The volume of square footage that is committed to and signed under a lease obligation for a specific building or market in a given period of time. It includes direct leases, subleases and renewals of existing leases. It also includes any pre-leasing activity in planned, under construction, or under renovation buildings. Market: Geographic boundaries that serve to delineate core areas that are competitive with each other and constitute a generally accepted primary competitive set of areas. Markets are buildingtype specific, and are non-overlapping contiguous geographic designations having a cumulative sum that matches the boundaries of the entire Region (See also: Region). Markets can be further subdivided into Submarkets. (See also: Submarkets) 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT C

NATIONAL FIRST QUARTER 2014 National Industrial Market Multi-Tenant: Buildings that house more than one tenant at a given time. Usually, multi-tenant buildings were designed and built to accommodate many different floor plans and designs for different tenant needs. (See also: Tenancy). Net Absorption: The net change in occupied space over a given period of time. Unless otherwise noted Net Absorption includes direct and sublease space. Net Rental Rate: A rental rate that excludes certain expenses that a tenant could incur in occupying office space. Such expenses are expected to be paid directly by the tenant and may include janitorial costs, electricity, utilities, taxes, insurance and other related costs. New Space: Sometimes called first generation space, refers to space that has never been occupied and/or leased by a tenant. Occupied Space: Space that is physically occupied by a tenant. It does not include leased space that is not currently occupied by a tenant. Office Building: A type of commercial building used exclusively or primarily for office use (business), as opposed to manufacturing, warehousing, or other uses. Office buildings may sometimes have other associated uses within part of the building, i.e., retail sales, financial, or restaurant, usually on the ground floor. Owner: The company, entity, or individual that holds title on a given building or property. Planned/Proposed: The status of a building that has been announced for future development but not yet started construction. Preleased Space: The amount of space in a building that has been leased prior to its construction completion date, or certificate of occupancy date. Price/SF: Calculated by dividing the price of a building (either sales price or asking sales price) by the Rentable Building Area (RBA). Property Manager: The company and/or person responsible for the day-to-day operations of a building, such as cleaning, trash removal, etc. The property manager also makes sure that the various systems within the building, such as the elevators, HVAC, and electrical systems, are functioning properly. Quoted Rental Rate: The asking rate per square foot for a particular building or unit of space by a broker or property owner. Quoted rental rates may differ from the actual rates paid by tenants following the negotiation of all terms and conditions in a specific lease. RBA: Abbreviation for Rentable Building Area. (See also: Rentable Building Area) Region: Core areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Regions are further divided into market areas, called Markets. (See also: Markets) Relet Space: Sometimes called second generation or direct space, refers to existing space that has previously been occupied by another tenant. Rentable Building Area: (RBA) The total square footage of a building that can be occupied by, or assigned to a tenant for the purpose of determining a tenant s rental obligation. Generally RBA includes a percentage of common areas including all hallways, main lobbies, bathrooms, and telephone closets. Rental Rates: The annual costs of occupancy for a particular space quoted on a per square foot basis. Sales Price: The total dollar amount paid for a particular property at a particular point in time. Sales Volume: The sum of sales prices for a given group of buildings in a given time period. Seller: The individual, group, company, or entity that sells a particular commercial real estate asset. SF: Abbreviation for Square Feet. Single-Tenant: Buildings that are occupied, or intended to be occupied by a single tenant. (See also: Build-to-suit and Tenancy) Sublease Space: Space that has been leased by a tenant and is being offered for lease back to the market by the tenant with the lease obligation. Sublease space is sometimes referred to as sublet space. Submarkets: Specific geographic boundaries that serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted primary competitive set, or peer group. Submarkets are building type specific (office, industrial, retail, etc.), with distinct boundaries dependent on different factors relevant to each building type. Submarkets are non-overlapping, contiguous geographic designations having a cumulative sum that matches the boundaries of the Market they are located within (See also: Market). Suburban: The Suburban and Central Business District (CBD) designations refer to a particular geographic area within a metropolitan statistical area (MSA). Suburban is defined as including all office inventory not located in the CBD. (See also: CBD) Tenancy: A term used to indicate whether or not a building is occupied by multiple tenants (See also: Multi-tenant) or a single tenant. (See also: Single-tenant) Tenant Rep: Tenant Rep stands for Tenant Representative. In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the tenant is referred to as a Tenant Rep. Time On Market: A measure of how long a currently available space has been marketed for lease, regardless of whether it is vacant or occupied. Under Construction: The status of a building that is in the process of being developed, assembled, built or constructed. A building is considered to be under construction after it has begun construction and until it receives a certificate of occupancy. Vacancy Rate: A measurement expressed as a percentage of the total amount of physically vacant space divided by the total amount of existing inventory. Under construction space generally is not included in vacancy calculations. Vacant Space: Space that is not currently occupied by a tenant, regardless of any lease obligation that may be on the space. Vacant space could be space that is either available or not available. For example, sublease space that is currently being paid for by a tenant but not occupied by that tenant, would be considered vacant space. Likewise, space that has been leased but not yet occupied because of finish work being done, would also be considered vacant space. Weighted Average Rental Rate: Rental rates that are calculated by factoring in, or weighting, the square footage associated with each particular rental rate. This has the effect of causing rental rates on larger spaces to affect the average more than that of smaller spaces. The weighted average rental rate is calculated by taking the ratio of the square footage associated with the rental rate on each individual available space to the square footage associated with rental rates on all available spaces, multiplying the rental rate by that ratio, and then adding together all the resulting numbers. Unless specifically specified otherwise, rental rate averages include both Direct and Sublet available spaces. Year Built: The year in which a building completed construction and was issued a certificate of occupancy. YTD: Abbreviation for Year-to-Date. Describes statistics that are cumulative from the beginning of a calendar year through whatever time period is being studied. D THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

National Industrial Market OVERVIEW FIRST QUARTER 2014 NATIONAL U.S. s Vacancy Decreases to 7.8% Net Absorption Positive 46,960,231 SF in the Quarter The U.S. Industrial market ended the first quarter 2014 with a vacancy rate of 7.8%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 46,960,231 square feet in the first quarter. Vacant sublease space decreased in the quarter, ending the quarter at 38,546,689 square feet. Rental rates ended the first quarter at $5.39, an increase over the previous quarter. A total of 279 buildings delivered to the market in the quarter totaling 27,775,922 square feet, with 114,737,565 square feet still under construction at the Absorption Net absorption for the overall U.S. Industrial market was positive 46,960,231 square feet in the first quarter 2014. That compares to positive 79,293,116 square feet in the fourth quarter 2013, positive 60,410,567 square feet in the third quarter 2013, and positive 50,194,296 square feet in the second quarter 2013. Tenants moving out of large blocks of space in 2014 include: ETS Incorporated moving out of 11,500-square feet at 4 Vatrano Rd in the Albany/Schenectady/Troy market, Baker Equipment moving out of 50,000- square feet at 1310 Roseneath Rd in the Richmond market, and Silgan Plastics, LLC moving out of 187,850-square-feet at 1191 Lake Ave in the Chicago market. Tenants moving into large blocks of space in 2014 include: Dynamic Marketing, Inc moving into 396,510-square-feet in the Northern New Jersey market, Shumacher moving into 100,000- square-feet at 1966 W Hwy 160 in the Charlotte market and United Pipe & Steel Corp moving into 80,000-square-feet at 1350 S Sheeler Rd in the Orlando market. The Flex building market recorded net absorption of positive 4,516,117 square feet in the first quarter 2014, compared to positive 6,786,771 square feet in the fourth quarter 2013, positive 3,719,862 in the third quarter 2013, and positive 4,774,966 in the second quarter 2013. The Warehouse building market recorded net absorption of positive 42,444,114 square feet in the first quarter 2014 compared to positive 72,506,345 square feet in the fourth quarter 2013, positive 56,690,705 in the third quarter 2013, and positive 45,419,330 in the second quarter 2013. Vacancy The Industrial vacancy rate in the U.S. market area decreased to 7.8% at the end of the first quarter 2014. The vacancy rate was 8.0% at the end of the fourth quarter 2013, 8.3% at the end of the third quarter 2013, and 8.5% at the end of the second quarter 2013. Flex projects reported a vacancy rate of 10.8% at the end of the first quarter 2014, 11.0% at the end of the fourth quarter 2013, 11.3% at the end of the third quarter 2013, and 11.5% at the end of the second quarter 2013. Warehouse projects reported a vacancy rate of 7.5% at the end of the first quarter 2014, 7.6% at the end of fourth quarter 2013, 7.9% at the end of the third quarter 2013, and 8.1% at the end of the second quarter 2013. Largest Lease Signings The largest lease signings occurring in 2014 included: the 898,560-square-foot lease signed by PactivCorporation at PinnacleXV in the Chicago market; the 497,867-square-foot deal signed by HD Supply Holdings, Inc at Greens Crossing I in Vacancy Rates by Building Type* 2000-2014 16% Flex Warehouse Total Market 14% 12% Vacancy Rate 10% 8% 6% 4% 2% 0% 2000 4q 2001 4q 2002 4q 2003 4q 2004 4q 2005 4q 2006 4q 2007 4q 2008 4q 2009 4q 2010 4q 2011 4q 2012 4q 2013 4q Source: CoStar Property * Select markets included in this historical chart - see Methodology page. 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 1

NATIONAL FIRST QUARTER 2014 National Industrial Market OVERVIEW the Houston, and the 405,679-square-foot lease signed by NFI Industries at Port Reading Business Park Bldg 3 in the Northern New Jersey market. Sublease Vacancy The amount of vacant sublease space in the U.S. market decreased to 38,546,689 square feet by the end of the first quarter 2014, from 39,270,380 square feet at the end of the fourth quarter 2013. There was 43,598,709 square feet vacant at the end of the third quarter 2013 and 46,554,474 square feet at the end of the second quarter 2013. U.S. s Flex projects reported vacant sublease space of 6,792,324 square feet at the end of first quarter 2014, down from the 6,982,997 square feet reported at the end of the fourth quarter 2013. There were 7,162,187 square feet of sublease space vacant at the end of the third quarter 2013, and 7,528,783 square feet at the end of the second quarter 2013. Warehouse projects reported decreased vacant sublease space from the fourth quarter 2013 to the first quarter 2014. Sublease vacancy went from 32,287,383 square feet to 31,754,365 square feet during that time. There was 36,436,522 square feet at the end of the third quarter 2013, and 39,025,691 square feet at the end of the second quarter 2013. Rental Rates The average quoted asking rental rate for available Industrial space was $5.39 per square foot per year at the end of the first quarter 2014 in the U.S. market area. This represented a 0.6% increase in quoted rental rates from the end of the fourth quarter 2013, when rents were reported at $5.36 per square foot. The average quoted rate within the Flex sector was $10.71 per square foot at the end of the first quarter 2014, while Warehouse rates stood at $4.73. At the end of the fourth quarter 2013, Flex rates were $10.58 per square foot, and Warehouse rates were $4.71. Deliveries and Construction During the first quarter 2014, 279 buildings totaling 27,775,922 square feet were completed in the U.S. market area. This compares to 210 buildings totaling 25,162,233 square feet that were completed in the fourth quarter 2013, 234 buildings totaling 32,307,525 square feet completed in the third quarter 2013, and 22,912,108 square feet in 230 buildings completed in the second quarter 2013. There were 114,737,565 square feet of Industrial space under construction at the end of the first quarter 2014. Some of the notable 2014 deliveries include: 4500 S Dobson Rd, a 2,145,757-square-foot facility in the Phoenix market that delivered in first quarter 2014 and is now 0% occupied, and 2101 Danieldale Rd, a 1,224,688-square-foot building in the Dallas/Ft Worth market that delivered in first quarter 2014 and is now 100% occupied. The largest projects underway at the end of first quarter 2014 were Intel Ronler Acres - D1X, a 1,800,000-square-foot building in the Portland market with 100% of its space preleased, and 16325 Indian Ave, a 1,560,046-square-foot facility in the Inland Empire (California) market that is 100% pre-leased. Inventory Total Industrial inventory in the U.S. market area amounted to 20,953,131,027 square feet in 618,361 buildings as of the end of the first quarter 2014. The Flex sector consisted of 2,258,246,572 square feet in 89,854 projects. The Warehouse sector consisted of 18,694,884,455 square feet in 528,507 buildings. Within the Industrial market there were 68,119 owner-occupied buildings accounting for 4,228,153,143 square feet of Industrial space. Sales Activity Tallying Industrial building sales of 15,000 square feet or larger, U.S. Industrial sales figures rose during the fourth quarter 2013 in terms of dollar volume compared to the third quarter of 2013. In the fourth quarter, 1,576 Industrial transactions closed with a total volume of $7,262,766,874. The 1,576 buildings totaled 126,040,093 square feet and the average price per square foot equated to $57.62 per square foot. That compares to 1,460 transactions totaling $5,710,523,894 in the third quarter. The total square footage was 108,534,612 for an average price per square foot of $52.61. Total year-to-date Industrial building sales activity in 2013 is up compared to the previous year. In the twelve months of 2013, the market saw 5,321 Industrial sales transactions with a total volume of $23,482,822,201. The price per square foot has averaged $56.40 this year. In the twelve months of 2012, the market posted 5,357 transactions with a total volume of $21,501,347,482. The price per square foot averaged $50.17. Cap rates have been lower in 2013, averaging 7.99%, compared to the twelve months of last year when they averaged 8.17%. One of the largest transactions that has occurred within the last 4 quarters in the U.S. market is the sale of 5959 Randolph St in the Los Angeles market. This 400,169 square foot Industrial building sold for $53,800,000, or $134.44 per square foot. The property sold on 1/14/2014, at a 4.3% cap rate. Albany/Schenectady/Troy The Albany/Schenectady/Troy Industrial market saw vacancies rise and rental rates change from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 7.3%, from 7.2% in the previous quarter. Rental rates ended the quarter at $4.59 per square foot, from $4.59 in the previous quarter. There was a total of 80,000 square feet that delivered in the quarter, with 159,493 square feet still under construction at the 2 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

National Industrial Market OVERVIEW FIRST QUARTER 2014 NATIONAL Albuquerque The Albuquerque Industrial market saw vacancies rise and rental rates decrease from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 7.8%, from 7.6% in the previous quarter. Rental rates ended the quarter at $6.60 per square foot, from $6.62 in the previous quarter. There was a total of 101,500 square feet that delivered in the quarter, with 15,000 square feet still under construction at the Anchorage With no space currently under construction, Anchorage absorbed 8,123 square feet of space and delivered 2,840 square feet of space, resulting in a vacancy rate that remained at 2.5%. Rental rates went from $11.59 to $12.67 per square foot. Asheville With no space currently under construction, Asheville absorbed (4,188) square feet of space and delivered 14,300 square feet of space, resulting in a vacancy rate that remained at 7.6% over the course of the quarter. Rental rates went from $3.84 to $3.86 per square foot. Atlanta The Atlanta Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 10.5%, from 11.2% in the previous quarter. Rental rates ended the quarter at $3.94 per square foot, from $3.92 in the previous quarter. There was a total of 177,000 square feet that delivered in the quarter, with 4,276,846 square feet still under construction at the end of the quarter. Augusta/Richmond County and positive 206,572 square feet of net absorption, Augusta/ Richmond County s vacancy rate remained at 9.0%. Rental rates went from $2.94 to $2.86 during that time. At the end of the quarter, there was 195,800 square feet underway for future delivery. Austin The Austin Industrial market saw vacancies rise and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 9.1%, from 7.6% in the previous quarter. Rental rates ended the quarter at $7.67 per square foot, from $7.26 in the previous quarter. There was a total of 301,404 square feet that delivered in the quarter, with 246,947 square feet still under construction at the end of the quarter. Bakersfield and negative (31,934) square feet of net absorption, Bakersfield s Absorption & Deliveries* Past 7 Quarters Millions SF 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 23.6 14.0 49.6 Net Absorption 23.0 40.3 Source: CoStar Property * Select markets included in this chart - see Methodology page. vacancy rate went from 4.4% to 4.5% in the quarter. Rental rates went from $6.19 to $6.32 during that time. At the end of the quarter, there was 6,967 square feet underway for future delivery. Baltimore and positive 956,396 square feet of net absorption, Baltimore s vacancy rate went from 9.2% to 8.8% in the quarter. Rental rates went from $5.75 to $5.90 during that time. At the end of the quarter, there was 3,715,118 square feet underway for future delivery. Baton Rouge The Baton Rouge Industrial market saw vacancies rise and rental rates decrease from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 11.3%, from 10.9% in the previous quarter. Rental rates ended the quarter at $5.11 per square foot, from $5.16 in the previous quarter. There was a total of 30,275 square feet that delivered in the quarter, with 50,000 square feet still under construction at the Beaumont/Port Arthur The Beaumont/Port Arthur Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of negative (33,677) square feet caused the vacancy rate to increase from 7.1% to 7.4% in the quarter. Rental rates stood at $4.80. Birmingham and negative (63,383) square feet of net absorption, Birmingham s 15.9 38.8 19.3 49.2 27.1 Deliveries 60.6 18.4 36.6 22.9 2012 3q 2012 4q 2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 3

NATIONAL FIRST QUARTER 2014 National Industrial Market OVERVIEW vacancy rate remained at 10.0%. Rental rates went from $3.42 to $3.41 during that time. At the end of the quarter, there was 682,748 square feet underway for future delivery. Boise City/Nampa and negative (104,991) square feet of net absorption, Boise City/ Nampa s vacancy rate went from 7.6% to 7.9% in the quarter. Rental rates went from $5.07 to $5.19 during that time. At the end of the quarter, there was 25,000 square feet underway for future delivery. Boston The Boston Industrial market saw vacancies fall and rental rates change from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 8.8%, from 8.9% in the previous quarter. Rental rates remained at $6.20 per square foot. There was a total of 110,400 square feet that delivered in the quarter, with 659,045 square feet still under construction at the Bremerton/Silverdale The Bremerton/Silverdale Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of positive 30,299 square feet caused the vacancy rate to decrease from 6.5% to 5.4% in the quarter. Rental rates stood at $6.33. Broward County The vacancy rate remained unchanged in Broward County in the first quarter. With 428,810 square feet in deliveries, and positive 338,448 square feet in net absorption, the vacancy rate held at 7.9%, the same rate reported in the previous quarter. The market had 356,600 square feet under construction at the end of the quarter, and rental rates stood at $7.96 per square foot. Brownsville/Harlingen The Brownsville/Harlingen Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of positive 3,350 square feet caused the vacancy rate to decrease from 15.8% to 15.7% in the quarter. Rental rates stood at $3.52. Buffalo/Niagara Falls The Buffalo/Niagara Falls Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of positive 96,261 square feet caused the vacancy rate to decrease from 10.3% to 10.1% in the quarter. Rental rates stood at $3.93. Charleston WV The Charleston WV Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of positive 15,310 square feet caused the vacancy rate to decrease from 2.7% to 2.6% in the quarter. Rental rates stood at $6.00. Charleston/N Charleston The Charleston/N Charleston Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 7.8%, from 8.4% in the previous quarter. Rental rates ended the quarter at $4.78 per square foot, from $4.71 in the previous quarter. There was a total of 6,000 square feet that delivered in the quarter, with 140,000 square feet still under construction at the Charlotte The Charlotte Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 10.1%, from 10.4% in the previous quarter. Rental rates ended the quarter at $3.82 per square foot, from $3.80 in the previous quarter. There was a total of 169,423 square feet that delivered in the quarter, with 1,970,123 square feet still under construction at the end of the quarter. Chattanooga and negative (13,522) square feet of net absorption, Chattanooga s vacancy rate remained at 14.4%. Rental rates went from $2.91 to $3.09 during that time. At the end of the quarter, there was 201,050 square feet underway for future delivery. Chicago The Chicago Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 8.6%, from 8.7% in the previous quarter. Rental rates ended the quarter at $5.17 per square foot, from $5.14 in the previous quarter. There was a total of 1,308,166 square feet that delivered in the quarter, with 4,324,488 square feet still under construction at the end of the quarter. Cincinnati and positive 1,475,733 square feet of net absorption, Cincinnati s vacancy rate went from 7.3% to 6.8% in the quarter. Rental rates went from $3.41 to $3.47 during that time. At the end of the quarter, there was 1,280,564 square feet underway for future delivery. Cleveland The vacancy rate remained unchanged in Cleveland in the first quarter. With 122,738 square feet in deliveries, and positive 4 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

National Industrial Market OVERVIEW FIRST QUARTER 2014 NATIONAL 242,435 square feet in net absorption, the vacancy rate held at 7.9%, the same rate reported in the previous quarter. The market had 194,576 square feet under construction at the end of the quarter, and rental rates stood at $3.67 per square foot. Colorado Springs With no space currently under construction, Colorado Springs absorbed 278,389 square feet of space and delivered 167,220 square feet of space, resulting in a vacancy rate that went from 8.7% to 8.3% over the course of the quarter. Rental rates went from $6.05 to $6.16 per square foot. Columbia and positive 912,766 square feet of net absorption, Columbia s vacancy rate went from 10.4% to 8.7% in the quarter. Rental rates went from $3.97 to $3.98 during that time. At the end of the quarter, there was 511,500 square feet underway for future delivery. Columbus The Columbus Industrial market saw vacancies fall and rental rates change from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 7.0%, from 7.5% in the previous quarter. Rental rates remained at $3.22 per square foot. There was a total of 503,589 square feet that delivered in the quarter, with 1,275,969 square feet still under construction at the Columbus GA The Columbus GA Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of positive 99,593 square feet caused the vacancy rate to decrease from 9.5% to 9.0% in the quarter. Rental rates stood at $2.89. Corpus Christi The Corpus Christi Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 4.2%, from 4.4% in the previous quarter. Rental rates ended the quarter at $6.34 per square foot, from $6.28 in the previous quarter. There was a total of 30,000 square feet that delivered in the quarter, with 18,300 square feet still under construction at the Dallas/Ft Worth The vacancy rate remained unchanged in Dallas/Ft Worth in the first quarter. With 4,997,415 square feet in deliveries, and positive 4,677,626 square feet in net absorption, the vacancy rate held at 7.3%, the same rate reported in the previous quarter. The market had 14,440,861 square feet under construction at the end of the quarter, and rental rates stood at $5.20 per square foot. Davenport/Moline/Rock Island The Davenport/Moline/Rock Island Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of positive 19,412 square feet caused the vacancy rate to decrease from 6.8% to 6.6% in the quarter. Rental rates stood at $3.88. Dayton The Dayton Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of negative (377,349) square feet caused the vacancy rate to increase from 13.9% to 14.2% in the quarter. Rental rates stood at $3.32. Deltona/Daytona Beach The Deltona/Daytona Beach Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 8.0%, from 8.5% in the previous quarter. Rental rates ended the quarter at $5.16 per square foot, from $5.11 in the previous quarter. There was a total of 30,765 square feet that delivered in the quarter, with 6,000 square feet still under construction at the Denver The Denver Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 5.4%, from 5.8% in the previous quarter. Rental rates ended the quarter at $6.79 per square foot, from $6.69 in the previous quarter. There was a total of 183,599 square feet that delivered in the quarter, with 2,826,450 square feet still under construction at the end of the quarter. Des Moines The Des Moines Industrial market saw vacancies fall and rental rates decrease from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 3.9%, from 4.1% in the previous quarter. Rental rates ended the quarter at $4.41 per square foot, from $4.44 in the previous quarter. There was a total of 12,614 square feet that delivered in the quarter, with 264,922 square feet still under construction at the end of the quarter. Detroit The Detroit Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 9.0%, from 9.2% in the previous quarter. Rental rates ended the quarter at $4.63 per square foot, from $4.60 in the previous quarter. There was a total of 303,996 square feet that delivered in the quarter, with 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 5

NATIONAL FIRST QUARTER 2014 National Industrial Market OVERVIEW 834,323 square feet still under construction at the end of the quarter. Duluth The Duluth Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of positive 16,775 square feet caused the vacancy rate to decrease from 4.6% to 4.5% in the quarter. Rental rates stood at $5.72. East Bay/Oakland The East Bay/Oakland Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 7.7%, from 8.0% in the previous quarter. Rental rates ended the quarter at $8.25 per square foot, from $8.01 in the previous quarter. There was a total of 374,725 square feet that delivered in the quarter, with 2,355,436 square feet still under construction at the El Paso and negative (845,662) square feet of net absorption, El Paso s vacancy rate went from 10.7% to 12.1% in the quarter. Rental rates went from $4.00 to $4.08 during that time. At the end of the quarter, there was 20,000 square feet underway for future delivery. Erie The Erie Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of positive 11,044 square feet caused the vacancy rate to decrease from 9.7% to 9.6% in the quarter. Rental rates stood at $2.76. Evansville The Evansville Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of negative (97,479) square feet caused the vacancy rate to increase from 14.6% to 14.9% in the quarter. Rental rates stood at $2.80. Fayetteville The Fayetteville Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of negative (171,355) square feet caused the vacancy rate to increase from 10.2% to 11.4% in the quarter. Rental rates stood at $3.79. Fayetteville/Springdale/Rogers With no space currently under construction, Fayetteville/ Springdale/Roge absorbed (96,216) square feet of space and delivered 20,000 square feet of space, resulting in a vacancy rate that went from 8.8% to 9.2% over the course of the quarter. Rental rates went from $3.51 to $3.55 per square foot. Fort Smith The Fort Smith Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of positive 27,774 square feet caused the vacancy rate to decrease from 12.6% to 12.4% in the quarter. Rental rates stood at $2.49. Fort Wayne The Fort Wayne Industrial market saw vacancies rise and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 6.5%, from 5.9% in the previous quarter. Rental rates ended the quarter at $3.56 per square foot, from $3.52 in the previous quarter. There was a total of 102,400 square feet that delivered in the quarter, with 253,000 square feet still under construction at the Fresno The Fresno Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 7.3%, from 8.0% in the previous quarter. Rental rates ended the quarter at $4.15 per square foot, from $4.02 in the previous quarter. There was a total of 21,285 square feet that delivered in the quarter, with 96,000 square feet still under construction at the end of the quarter. Green Bay The vacancy rate remained unchanged in Green Bay in the first quarter. With 21,000 square feet in deliveries, and positive 56,764 square feet in net absorption, the vacancy rate held at 3.7%, the same rate reported in the previous quarter. The market had 19,200 square feet under construction at the end of the quarter, and rental rates stood at $4.05 per square foot. Greensboro/Winston-Salem The vacancy rate remained unchanged in Greensboro/ Winston-Salem in the first quarter. With 2,400 square feet in deliveries, and negative (209,889) square feet in net absorption, the vacancy rate held at 8.6%, the same rate reported in the previous quarter. The market had 2,186,560 square feet under construction at the end of the quarter, and rental rates stood at $2.96 per square foot. Greenville/Spartanburg The Greenville/Spartanburg Industrial market saw vacancies rise and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 8.7%, from 8.5% in the previous quarter. Rental rates ended the quarter at $3.28 per square foot, from $3.24 in the previous 6 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

National Industrial Market OVERVIEW FIRST QUARTER 2014 NATIONAL quarter. There was a total of 122,400 square feet that delivered in the quarter, with 800,719 square feet still under construction at the Hampton Roads The Hampton Roads Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 8.4%, from 8.7% in the previous quarter. Rental rates ended the quarter at $5.18 per square foot, from $5.15 in the previous quarter. There was a total of 60,214 square feet that delivered in the quarter, with 75,121 square feet still under construction at the Hartford and negative (62,208) square feet of net absorption, Hartford s vacancy rate remained at 9.5%. Rental rates went from $4.28 to $4.27 during that time. At the end of the quarter, there was 1,500,000 square feet underway for future delivery. Hawaii and negative (25,581) square feet of net absorption, Hawaii s vacancy rate went from 2.7% to 2.8% in the quarter. Rental rates went from $11.94 to $12.12 during that time. At the end of the quarter, there was 215,927 square feet underway for future delivery. Houston The Houston Industrial market saw vacancies rise and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 5.4%, from 5.3% in the previous quarter. Rental rates ended the quarter at $5.85 per square foot, from $5.74 in the previous quarter. There was a total of 2,800,908 square feet that delivered in the quarter, with 4,715,285 square feet still under construction at the end of the quarter. Huntington/Ashland The Huntington/Ashland Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of positive 12,895 square feet caused the vacancy rate to remain at 3.2%. Rental rates stood at $3.86. Huntsville The Huntsville Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of positive 3,968 square feet caused the vacancy rate to decrease from 11.7% to 11.6% in the quarter. Rental rates stood at $5.86. Indianapolis and positive 104,304 square feet of net absorption, Indianapolis s vacancy rate remained at 7.0%. Rental rates went from $3.92 to $3.88 during that time. At the end of the quarter, there was 2,187,530 square feet underway for future delivery. Inland Empire (California) The Inland Empire (California) Industrial market saw vacancies rise and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 5.2%, from 5.1% in the previous quarter. Rental rates ended the quarter at $5.27 per square foot, from $5.23 in the previous quarter. There was a total of 2,211,491 square feet that delivered in the quarter, with 13,710,685 square feet still under construction at the Jackson The Jackson Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of negative (623) square feet caused the vacancy rate to remain at 9.2%. Rental rates stood at $3.89. Jacksonville (Florida) and positive 470,892 square feet of net absorption, Jacksonville (Florida) s vacancy rate went from 9.2% to 8.9% in the quarter. Rental rates remained at $3.97. At the end of the quarter, there was 354,074 square feet underway for future delivery. Kansas City The Kansas City Industrial market saw vacancies fall and rental rates decrease from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 5.3%, from 5.4% in the previous quarter. Rental rates ended the quarter at $4.19 per square foot, from $4.20 in the previous quarter. There was a total of 772,408 square feet that delivered in the quarter, with 1,916,174 square feet still under construction at the Killeen/Temple/Fort Hood The Killeen/Temple/Fort Hood Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of negative (67,054) square feet caused the vacancy rate to increase from 4.0% to 5.4% in the quarter. Rental rates stood at $4.53. Kingsport/Bristol/Bristol The Kingsport/Bristol/Bristol Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 7

NATIONAL FIRST QUARTER 2014 National Industrial Market OVERVIEW absorption of negative (133,693) square feet caused the vacancy rate to increase from 11.6% to 12.2% in the quarter. Rental rates stood at $3.13. Knoxville With no space currently under construction, Knoxville absorbed (138,282) square feet of space and delivered 320,000 square feet of space, resulting in a vacancy rate that went from 8.0% to 8.6% over the course of the quarter. Rental rates went from $3.65 to $3.72 per square foot. Lafayette With no space currently under construction, Lafayette absorbed 41,362 square feet of space and delivered 40,364 square feet of space, resulting in a vacancy rate that went from 12.6% to 12.5% over the course of the quarter. Rental rates went from $4.18 to $4.24 per square foot. Las Vegas The Las Vegas Industrial market saw vacancies rise and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 11.0%, from 10.8% in the previous quarter. Rental rates ended the quarter at $6.13 per square foot, from $6.09 in the previous quarter. There was a total of 368,845 square feet that delivered in the quarter, with 51,097 square feet still under construction at the end of the quarter. Lexington/Fayette and positive 37,762 square feet of net absorption, Lexington/ Fayette s vacancy rate remained at 4.3%. Rental rates went from $4.56 to $4.81 during that time. At the end of the quarter, there was 10,000 square feet underway for future delivery. Lincoln With no space currently under construction, Lincoln absorbed (215,984) square feet of space and delivered 19,100 square feet of space, resulting in a vacancy rate that went from 2.3% to 3.2% over the course of the quarter. Rental rates went from $3.60 to $3.58 per square foot. Little Rock/N Little Rock The Little Rock/N Little Rock Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of negative (17,835) square feet caused the vacancy rate to increase from 8.4% to 8.5% in the quarter. Rental rates stood at $3.28. Long Island (New York) and negative (25,629) square feet of net absorption, Long Island (New York) s vacancy rate remained at 5.1%. Rental rates went from $11.71 to $11.96 during that time. At the end of the quarter, there was 545,547 square feet underway for future delivery. Los Angeles The Los Angeles Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 4.5%, from 4.7% in the previous quarter. Rental rates ended the quarter at $7.76 per square foot, from $7.60 in the previous quarter. There was a total of 393,847 square feet that delivered in the quarter, with 1,802,544 square feet still under construction at the Louisville The Louisville Industrial market saw vacancies fall and rental rates change from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 6.6%, from 7.1% in the previous quarter. Rental rates remained at $3.50 per square foot. There was a total of 78,512 square feet that delivered in the quarter, with 1,037,000 square feet still under construction at the Lubbock The Lubbock Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of positive 61,964 square feet caused the vacancy rate to decrease from 2.4% to 2.2% in the quarter. Rental rates stood at $3.84. Madison and negative (103,363) square feet of net absorption, Madison s vacancy rate went from 7.0% to 7.1% in the quarter. Rental rates went from $3.89 to $4.12 during that time. At the end of the quarter, there was 150,431 square feet underway for future delivery. Marin/Sonoma and positive 213,332 square feet of net absorption, Marin/ Sonoma s vacancy rate went from 6.3% to 5.8% in the quarter. Rental rates went from $9.34 to $9.94 during that time. At the end of the quarter, there was 18,000 square feet underway for future delivery. McAllen/Edinburg/Pharr and positive 22,324 square feet of net absorption, McAllen/ Edinburg/Pharr s vacancy rate went from 13.4% to 13.3% in the 8 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

National Industrial Market OVERVIEW FIRST QUARTER 2014 NATIONAL quarter. Rental rates went from $4.33 to $4.41 during that time. At the end of the quarter, there was 60,000 square feet underway for future delivery. Memphis The Memphis Industrial market saw vacancies rise and rental rates decrease from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 12.2%, from 12.1% in the previous quarter. Rental rates ended the quarter at $2.90 per square foot, from $2.92 in the previous quarter. There was a total of 514,980 square feet that delivered in the quarter, with 2,265,252 square feet still under construction at the end of the quarter. Miami-Dade County The Miami-Dade County Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 6.0%, from 6.3% in the previous quarter. Rental rates ended the quarter at $8.32 per square foot, from $8.25 in the previous quarter. There was a total of 180,025 square feet that delivered in the quarter, with 1,640,902 square feet still under construction at the Milwaukee The Milwaukee Industrial market saw vacancies fall and rental rates decrease from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 6.9%, from 7.2% in the previous quarter. Rental rates ended the quarter at $4.17 per square foot, from $4.24 in the previous quarter. There was a total of 120,900 square feet that delivered in the quarter, with 720,689 square feet still under construction at the Minneapolis The Minneapolis Industrial market saw vacancies fall and rental rates decrease from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 6.2%, from 6.4% in the previous quarter. Rental rates ended the quarter at $6.04 per square foot, from $6.10 in the previous quarter. There was a total of 285,000 square feet that delivered in the quarter, with 1,115,958 square feet still under construction at the Mobile The Mobile Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of positive 267,963 square feet caused the vacancy rate to decrease from 12.2% to 11.3% in the quarter. Rental rates stood at $4.19. Montgomery The Montgomery Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of positive 68,150 square feet caused the vacancy rate to decrease from 15.5% to 15.2% in the quarter. Rental rates stood at $3.15. Myrtle Beach/Conway The Myrtle Beach/Conway Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of negative (35,550) square feet caused the vacancy rate to increase from 8.6% to 9.2% in the quarter. Rental rates stood at $4.55. Nashville The Nashville Industrial market saw vacancies rise and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 8.6%, from 8.4% in the previous quarter. Rental rates ended the quarter at $3.85 per square foot, from $3.83 in the previous quarter. There was a total of 240,000 square feet that delivered in the quarter, with 160,047 square feet still under construction at the New Orleans/Metairie/Kenner and positive 59,634 square feet of net absorption, New Orleans/ Metairie/Kenner s vacancy rate went from 7.3% to 7.2% in the quarter. Rental rates went from $5.12 to $5.21 during that time. At the end of the quarter, there was 5,584 square feet underway for future delivery. Northern New Jersey The Northern New Jersey Industrial market saw vacancies rise and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 8.4%, from 8.3% in the previous quarter. Rental rates ended the quarter at $5.92 per square foot, from $5.87 in the previous quarter. There was a total of 1,091,244 square feet that delivered in the quarter, with 6,303,669 square feet still under construction at the Ocala The Ocala Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of positive 30,730 square feet caused the vacancy rate to decrease from 7.4% to 7.2% in the quarter. Rental rates stood at $3.70. Oklahoma City The Oklahoma City Industrial market saw vacancies rise and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 6.2%, from 6.1% in the previous quarter. Rental rates ended the quarter at $4.55 per square foot, from $4.43 in the previous quarter. 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 9

NATIONAL FIRST QUARTER 2014 National Industrial Market OVERVIEW There was a total of 375,976 square feet that delivered in the quarter, with 261,901 square feet still under construction at the Olympia The Olympia Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of positive 27,465 square feet caused the vacancy rate to decrease from 8.8% to 8.6% in the quarter. Rental rates stood at $5.26. Omaha/Council Bluffs The Omaha/Council Bluffs Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 4.2%, from 4.3% in the previous quarter. Rental rates ended the quarter at $4.61 per square foot, from $4.51 in the previous quarter. There was a total of 79,851 square feet that delivered in the quarter, with 24,000 square feet still under construction at the Orange County (California) and positive 538,896 square feet of net absorption, Orange County (California) s vacancy rate went from 4.7% to 4.5% in the quarter. Rental rates went from $8.72 to $8.82 during that time. At the end of the quarter, there was 13,530 square feet underway for future delivery. Orlando The Orlando Industrial market saw vacancies rise and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 9.5%, from 9.4% in the previous quarter. Rental rates ended the quarter at $5.41 per square foot, from $5.37 in the previous quarter. There was a total of 74,814 square feet that delivered in the quarter, with 1,351,091 square feet still under construction at the end of the quarter. Palm Beach County The Palm Beach County Industrial market saw vacancies rise and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 6.7%, from 6.6% in the previous quarter. Rental rates ended the quarter at $8.65 per square foot, from $8.59 in the previous quarter. There was a total of 210,400 square feet that delivered in the quarter, with 650,000 square feet still under construction at the Pensacola The Pensacola Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of positive 31,162 square feet caused the vacancy rate to decrease from 7.1% to 6.9% in the quarter. Rental rates stood at $4.46. Peoria The Peoria Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of negative (21,572) square feet caused the vacancy rate to increase from 6.7% to 6.8% in the quarter. Rental rates stood at $3.74. Philadelphia The Philadelphia Industrial market saw vacancies rise and rental rates decrease from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 8.8%, from 8.7% in the previous quarter. Rental rates ended the quarter at $4.52 per square foot, from $4.60 in the previous quarter. There was a total of 214,056 square feet that delivered in the quarter, with 9,801,800 square feet still under construction at the Phoenix The Phoenix Industrial market saw vacancies rise and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 13.1%, from 12.5% in the previous quarter. Rental rates ended the quarter at $6.68 per square foot, from $6.53 in the previous quarter. There was a total of 2,790,757 square feet that delivered in the quarter, with 2,551,721 square feet still under construction at the end of the quarter. Pittsburgh The Pittsburgh Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 7.3%, from 7.7% in the previous quarter. Rental rates ended the quarter at $5.29 per square foot, from $5.17 in the previous quarter. There was a total of 40,000 square feet that delivered in the quarter, with 791,403 square feet still under construction at the end of the quarter. Port St Lucie/Fort Pierce The Port St Lucie/Fort Pierce Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of positive 146,241 square feet caused the vacancy rate to decrease from 9.5% to 8.8% in the quarter. Rental rates stood at $6.65. Portland and positive 212,086 square feet of net absorption, Portland s vacancy rate went from 5.8% to 5.7% in the quarter. Rental rates went from $6.18 to $6.26 during that time. At the end of the quarter, there was 2,863,746 square feet underway for future delivery. Portland/South Portland 10 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

National Industrial Market OVERVIEW FIRST QUARTER 2014 NATIONAL and positive 74,031 square feet of net absorption, Portland/South Portland s vacancy rate went from 6.2% to 6.0% in the quarter. Rental rates went from $4.66 to $4.55 during that time. At the end of the quarter, there was 3,125 square feet underway for future delivery. Providence The Providence Industrial market saw vacancies rise and rental rates decrease from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 7.6%, from 7.0% in the previous quarter. Rental rates ended the quarter at $4.49 per square foot, from $4.56 in the previous quarter. There was a total of 30,000 square feet that delivered in the quarter, with 256,235 square feet still under construction at the end of the quarter. Raleigh/Durham The Raleigh/Durham Industrial market saw vacancies fall and rental rates decrease from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 9.1%, from 9.4% in the previous quarter. Rental rates ended the quarter at $5.21 per square foot, from $5.40 in the previous quarter. There was a total of 42,576 square feet that delivered in the quarter, with 234,246 square feet still under construction at the Reno/Sparks The Reno/Sparks Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 9.9%, from 10.1% in the previous quarter. Rental rates ended the quarter at $4.08 per square foot, from $4.05 in the previous quarter. There was a total of 524,800 square feet that delivered in the quarter, with 1,331,010 square feet still under construction at the Richmond VA With no space currently under construction, Richmond VA absorbed 318,906 square feet of space and delivered 10,400 square feet of space, resulting in a vacancy rate that went from 9.3% to 8.7% over the course of the quarter. Rental rates went from $3.73 to $4.09 per square foot. Roanoke The Roanoke Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of positive 22,075 square feet caused the vacancy rate to decrease from 10.4% to 10.3% in the quarter. Rental rates stood at $3.57. Rochester and negative (262,048) square feet of net absorption, Rochester s vacancy rate went from 9.6% to 9.8% in the quarter. Rental rates went from $4.18 to $4.28 during that time. At the end of the quarter, there was 44,528 square feet underway for future delivery. Sacramento and positive 651,991 square feet of net absorption, Sacramento s vacancy rate went from 11.9% to 11.6% in the quarter. Rental rates went from $5.03 to $5.00 during that time. At the end of the quarter, there was 767,406 square feet underway for future delivery. Salinas The Salinas Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of positive 279,601 square feet caused the vacancy rate to decrease from 8.2% to 6.8% in the quarter. Rental rates stood at $5.22. Salt Lake City The vacancy rate remained unchanged in Salt Lake City in the first quarter. With 116,783 square feet in deliveries, and positive 263,750 square feet in net absorption, the vacancy rate held at 4.0%, the same rate reported in the previous quarter. The market had 361,582 square feet under construction at the end of the quarter, and rental rates stood at $4.74 per square foot. San Antonio The San Antonio Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 5.6%, from 5.9% in the previous quarter. Rental rates ended the quarter at $5.75 per square foot, from $5.68 in the previous quarter. There was a total of 1,194,091 square feet that delivered in the quarter, with 571,506 square feet still under construction at the San Diego The San Diego Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 7.8%, from 8.2% in the previous quarter. Rental rates ended the quarter at $10.35 per square foot, from $10.18 in the previous quarter. There was a total of 226,579 square feet that delivered in the quarter, with 115,000 square feet still under construction at the San Francisco The San Francisco Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorp- 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 11

NATIONAL FIRST QUARTER 2014 National Industrial Market OVERVIEW tion of positive 108,263 square feet caused the vacancy rate to decrease from 6.0% to 5.8% in the quarter. Rental rates stood at $14.46. San Luis Obispo/Paso Robles The San Luis Obispo/Paso Robles Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of negative (8,809) square feet caused the vacancy rate to increase from 3.8% to 3.9% in the quarter. Rental rates stood at $8.85. Santa Barbara/Sta Maria/Gole With no space currently under construction, Santa Barbara/ Sta Maria/Gole absorbed 121,680 square feet of space and delivered 142,000 square feet of space, resulting in a vacancy rate that went from 3.9% to 4.0% over the course of the quarter. Rental rates went from $9.45 to $9.65 per square foot. Santa Cruz/Watsonville The Santa Cruz/Watsonville Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of negative (51,616) square feet caused the vacancy rate to increase from 6.0% to 6.5% in the quarter. Rental rates stood at $9.94. Savannah The Savannah Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of positive 1,051,157 square feet caused the vacancy rate to decrease from 11.7% to 9.5% in the quarter. Rental rates stood at $3.84. Seattle/Puget Sound The vacancy rate remained unchanged in Seattle/Puget Sound in the first quarter. With 882,982 square feet in deliveries, and positive 993,026 square feet in net absorption, the vacancy rate held at 5.7%, the same rate reported in the previous quarter. The market had 1,885,455 square feet under construction at the end of the quarter, and rental rates stood at $7.21 per square foot. Shreveport/Bossier City The Shreveport/Bossier City Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of negative (45,245) square feet caused the vacancy rate to increase from 31.6% to 31.8% in the quarter. Rental rates stood at $3.08. South Bay/San Jose and positive 541,397 square feet of net absorption, South Bay/ San Jose s vacancy rate went from 9.9% to 8.8% in the quarter. Rental rates went from $14.28 to $14.49 during that time. At the end of the quarter, there was 430,532 square feet underway for future delivery. South Bend/Mishawaka The South Bend/Mishawaka Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of positive 566,138 square feet caused the vacancy rate to decrease from 7.9% to 6.2% in the quarter. Rental rates stood at $3.05. Southwest Florida With no space currently under construction, Southwest Florida absorbed 4,804 square feet of space and delivered 17,000 square feet of space, resulting in a vacancy rate that remained at 7.3% over the course of the quarter. Rental rates went from $5.75 to $5.82 per square foot. Spokane and negative (53,454) square feet of net absorption, Spokane s vacancy rate went from 4.8% to 4.9% in the quarter. Rental rates went from $4.52 to $4.53 during that time. At the end of the quarter, there was 200,000 square feet underway for future delivery. Springfield With no space currently under construction, Springfield absorbed 126 square feet of space and delivered 2,580 square feet of space, resulting in a vacancy rate that remained at 10.8% over the course of the quarter. Rental rates went from $4.29 to $4.27 per square foot. St. Louis The St. Louis Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 7.9%, from 8.1% in the previous quarter. Rental rates ended the quarter at $3.99 per square foot, from $3.97 in the previous quarter. There was a total of 227,500 square feet that delivered in the quarter, with 500,000 square feet still under construction at the end of the quarter. Stockton/Modesto and positive 284,692 square feet of net absorption, Stockton/ Modesto s vacancy rate went from 9.9% to 9.7% in the quarter. Rental rates went from $3.87 to $3.84 during that time. At the end of the quarter, there was 939,000 square feet underway for future delivery. Syracuse With no space currently under construction, Syracuse 12 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

National Industrial Market OVERVIEW FIRST QUARTER 2014 NATIONAL absorbed 158,427 square feet of space and delivered 132,777 square feet of space, resulting in a vacancy rate that went from 11.1% to 11.0% over the course of the quarter. Rental rates went from $3.46 to $3.47 per square foot. Tallahassee The Tallahassee Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of negative (45,575) square feet caused the vacancy rate to increase from 8.2% to 8.5% in the quarter. Rental rates stood at $4.87. Tampa/St Petersburg The Tampa/St Petersburg Industrial market saw vacancies fall and rental rates increase from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 9.4%, from 9.6% in the previous quarter. Rental rates ended the quarter at $5.14 per square foot, from $5.05 in the previous quarter. There was a total of 660,149 square feet that delivered in the quarter, with 1,182,800 square feet still under construction at the Toledo The Toledo Industrial market saw vacancies fall and rental rates decrease from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 7.7%, from 7.8% in the previous quarter. Rental rates ended the quarter at $3.00 per square foot, from $3.04 in the previous quarter. There was a total of 29,918 square feet that delivered in the quarter, with 1,814 square feet still under construction at the Tucson With no space currently under construction, Tucson absorbed (45,090) square feet of space and delivered 56,091 square feet of space, resulting in a vacancy rate that went from 11.1% to 11.3% over the course of the quarter. Rental rates went from $6.28 to $6.39 per square foot. Tulsa The vacancy rate remained unchanged in Tulsa in the first quarter. With 85,000 square feet in deliveries, and positive 52,030 square feet in net absorption, the vacancy rate held at 5.0%, the same rate reported in the previous quarter. The market had 167,723 square feet under construction at the end of the quarter, and rental rates stood at $4.13 per square foot. Utica/Rome and positive 4,340 square feet of net absorption, Utica/Rome s vacancy rate remained at 12.3%. Rental rates went from $2.89 to $2.93 during that time. At the end of the quarter, there was 63,170 square feet underway for future delivery. Visalia/Porterville and positive 294,850 square feet of net absorption, Visalia/ Porterville s vacancy rate went from 6.4% to 5.5% in the quarter. Rental rates went from $3.82 to $3.86 during that time. At the end of the quarter, there was 9,955 square feet underway for future delivery. Washington The Washington Industrial market saw vacancies fall and rental rates decrease from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 10.1%, from 10.3% in the previous quarter. Rental rates ended the quarter at $9.67 per square foot, from $9.69 in the previous quarter. There was a total of 326,740 square feet that delivered in the quarter, with 1,577,790 square feet still under construction at the West Michigan and positive 372,604 square feet of net absorption, West Michigan s vacancy rate went from 6.1% to 6.0% in the quarter. Rental rates went from $3.25 to $3.25 during that time. At the end of the quarter, there was 763,200 square feet underway for future delivery. Westchester/So Connecticut The Westchester/So Connecticut Industrial market saw vacancies fall and rental rates decrease from the fourth quarter 2013 to the first quarter 2014. The overall vacancy rate currently sits at 10.5%, from 10.6% in the previous quarter. Rental rates ended the quarter at $7.29 per square foot, from $7.38 in the previous quarter. There was a total of 38,000 square feet that delivered in the quarter, with 24,550 square feet still under construction at the Wichita The Wichita Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of positive 143,687 square feet caused the vacancy rate to decrease from 4.8% to 4.5% in the quarter. Rental rates stood at $4.18. Wilmington and positive 91,060 square feet of net absorption, Wilmington s vacancy rate went from 18.2% to 17.7% in the quarter. Rental rates went from $3.50 to $3.40 during that time. At the end of the quarter, there was 14,625 square feet underway for future delivery. Yakima The Yakima Industrial market reported no new deliveries and no space under construction at the end of the first quarter 2014. With this limited construction activity, net absorption of positive 2,352 square feet caused the vacancy rate to remain at 4.4%. Rental rates stood at $4.40. 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 13

NATIONAL FIRST QUARTER 2014 National Industrial Market INVENTORY & DEVELOPMENT Historical Deliveries 1983-2015 Millions SF 450.0 400.0 350.0 300.0 250.0 200.0 150.0 100.0 50.0 0.0 219.5 316.4 412.2 373.3 354.3 369.2374.2 344.9 Deliveries 203.9 151.3 145.7 187.8 266.5 305.1 341.6 423.6421.4 392.5 378.5 260.4 196.9 228.2 Average Delivered SF 321.0 296.4 306.0 277.4 137.9 131.3 100.4 77.4 46.8 56.8 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 10.2 Source: CoStar Property * Future deliveries based on current under construction buildings. Construction Activity Markets Ranked by Under Construction Square Footage Under Construction Inventory Average Bldg Size Market # Bldgs Total RBA Preleased SF Preleased % All Existing U/C Dallas/Ft Worth 38 14,440,861 3,482,385 24.1% 39,228 380,023 Inland Empire (California) 32 13,710,685 5,930,002 43.3% 40,850 428,459 Philadelphia 19 9,801,800 8,470,460 86.4% 50,844 515,884 Northern New Jersey 17 6,303,669 3,487,180 55.3% 46,519 370,804 Houston 56 4,715,285 1,183,889 25.1% 30,360 84,202 Chicago 14 4,324,488 1,083,996 25.1% 51,444 308,892 Atlanta 9 4,276,846 4,199,720 98.2% 40,869 475,205 Baltimore 8 3,715,118 3,415,797 91.9% 50,335 464,390 Portland 11 2,863,746 2,102,014 73.4% 32,339 260,341 Denver 29 2,826,450 1,324,664 46.9% 28,065 97,464 Phoenix 21 2,551,721 1,369,004 53.7% 30,615 121,511 East Bay/Oakland 8 2,355,436 1,084,029 46.0% 32,890 294,429 Memphis 4 2,265,252 1,395,000 61.6% 63,468 566,313 Indianapolis 5 2,187,530 1,043,000 47.7% 47,095 437,506 Greensboro/Winston-Salem 4 2,186,560 2,051,910 93.8% 41,510 546,640 Charlotte 8 1,970,123 1,102,904 56.0% 39,386 246,265 Kansas City 9 1,916,174 426,000 22.2% 39,719 212,908 Seattle/Puget Sound 7 1,885,455 89,000 4.7% 36,796 269,351 Los Angeles 18 1,802,544 266,202 14.8% 26,788 100,141 Miami-Dade County 12 1,640,902 487,653 29.7% 26,047 136,742 Washington 14 1,577,790 491,858 31.2% 35,066 112,699 Hartford 1 1,500,000 1,500,000 100.0% 35,368 1,500,000 Orlando 6 1,351,091 999,382 74.0% 25,044 225,182 Reno/Sparks 2 1,331,010 707,010 53.1% 45,047 665,505 Cincinnati 2 1,280,564 0 0.0% 44,587 640,282 Columbus 6 1,275,969 345,817 27.1% 50,197 212,661 Tampa/St Petersburg 7 1,182,800 1,152,800 97.5% 22,605 168,971 Minneapolis 9 1,115,958 776,569 69.6% 38,100 123,995 Louisville 3 1,037,000 170,300 16.4% 39,216 345,667 Stockton/Modesto 1 939,000 939,000 100.0% 45,704 939,000 Detroit 10 834,323 667,675 80.0% 33,136 83,432 Greenville/Spartanburg 5 800,719 554,000 69.2% 40,430 160,144 Pittsburgh 5 791,403 697,103 88.1% 36,357 158,281 Sacramento 6 767,406 759,581 99.0% 29,265 127,901 West Michigan 3 763,200 720,000 94.3% 36,380 254,400 Milwaukee 6 720,689 666,642 92.5% 40,801 120,115 Birmingham 4 682,748 629,497 92.2% 32,411 170,687 Boston 12 659,045 135,045 20.5% 41,074 54,920 Palm Beach County 1 650,000 650,000 100.0% 18,400 650,000 San Antonio 10 571,506 193,312 33.8% 25,540 57,151 Long Island (New York) 4 545,547 286,249 52.5% 24,680 136,387 Columbia 2 511,500 511,500 100.0% 27,992 255,750 St. Louis 1 500,000 500,000 100.0% 43,197 500,000 Totals 567 114,737,565 62,124,177 54.1% 33,885 202,359 Source: CoStar Property 14 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

National Industrial Market INVENTORY & DEVELOPMENT FIRST QUARTER 2014 NATIONAL Historical Construction Starts & Deliveries* Square Footage Per Quarter Starting and Completing Construction 40.0 Construction Starts Deliveries 35.0 34.7 34.3 31.2 30.0 27.1 Millions SF 25.0 20.0 15.0 10.0 12.8 11.3 10.9 9.0 9.1 7.3 7.6 7.7 8.2 6.6 6.1 6.8 13.1 11.4 13.0 19.4 7.9 7.6 16.6 8.7 21.7 14.0 14.8 23.0 15.9 23.2 19.3 18.4 20.3 22.9 5.0 0.0 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2013 2q 2013 3q 2013 4q 2014 1q Source: CoStar Property * Select markets included in this historical chart - see Methodology page. Recent Deliveries by Project Size Breakdown of Year-to-Date Development Based on RBA of Project Building Size # Bldgs RBA SF Leased % Leased Avg Rate Single Tenant Multi-Tenant < 50,000 SF 168 2,566,013 1,473,569 57.4% $9.19 1,368,176 1,197,837 50,000 SF - 99,999 SF 30 2,139,954 1,602,021 74.9% $6.65 1,169,481 970,473 100,000 SF - 249,999 SF 33 4,795,736 3,226,034 67.3% $5.77 2,362,792 2,432,944 250,000 SF - 499,999 SF 25 8,759,358 5,873,405 67.1% $6.60 4,985,417 3,773,941 >= 500,000 SF 11 8,695,626 4,266,595 49.1% $3.62 5,818,104 2,877,522 Source: CoStar Property Recent Deliveries Leased & Un-Leased SF in Deliveries Last 5 Years Future Deliveries Preleased & Un-Leased SF in Properties Scheduled to Deliver 120.0 Leased Un-Leased 50.0 Preleased Un-Leased 45.0 100.0 40.0 Millions SF 80.0 60.0 40.0 Millions SF 35.0 30.0 25.0 20.0 15.0 20.0 10.0 5.0 0.0 2010 2011 2012 2013 2014 0.0 2014 2q 2014 3q 2014 4q 2015 1q 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 15

NATIONAL FIRST QUARTER 2014 National Industrial Market INVENTORY & DEVELOPMENT 16 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

National Industrial Market INVENTORY & DEVELOPMENT FIRST QUARTER 2014 NATIONAL 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 17

NATIONAL FIRST QUARTER 2014 National Industrial Market FIGURES AT A GLANCE Flex Market Statistics First Quarter 2014 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Albany/Schenect 326 9,070,588 655,319 655,319 7.2% 11,391 0 0 $10.10 Albuquerque 136 3,502,693 429,886 437,158 12.5% 17,499 0 0 $12.00 Anchorage 138 2,652,802 72,879 77,079 2.9% (1,234) 0 0 $16.58 Asheville 246 3,573,240 312,245 321,245 9.0% (22,103) 0 0 $8.79 Atlanta 4,221 69,122,160 9,284,688 9,443,512 13.7% 199,271 0 0 $7.96 Augusta/Richmo 413 3,179,057 345,572 345,572 10.9% (21,074) 0 20,800 $6.46 Austin 559 22,226,041 3,240,964 3,334,281 15.0% (618,818) 0 0 $10.98 Bakersfield 210 2,271,110 242,946 242,946 10.7% (749) 0 0 $8.89 Baltimore 1,324 48,045,656 4,428,047 4,624,373 9.6% 252,256 0 30,120 $11.20 Baton Rouge 183 2,394,735 189,319 199,819 8.3% (1,005) 0 0 $8.04 Beaumont/Port A 171 1,642,184 70,750 70,750 4.3% (1,500) 0 0 $5.94 Birmingham 788 11,002,400 741,106 741,106 6.7% (55,671) 0 21,879 $8.74 Boise City/Namp 245 4,242,177 452,180 452,180 10.7% 29,999 0 0 $8.40 Boston 2,567 120,926,613 13,393,676 13,590,662 11.2% 219,778 47,946 26,000 $9.63 Bremerton/Silver 73 582,016 21,562 21,562 3.7% 1,385 0 0 $11.77 Broward County 1,070 19,532,158 1,649,524 1,661,913 8.5% 108,813 11,520 0 $11.42 Brownsville/Harl 7 149,677 11,016 11,016 7.4% 0 0 0 $0.00 Buffalo/Niagara 142 5,739,552 486,552 494,152 8.6% (7,263) 0 0 $9.78 Charleston WV 56 502,185 72,545 72,545 14.4% 0 0 0 $5.00 Charleston/N Ch 534 5,376,069 522,617 547,910 10.2% (14,388) 0 0 $10.39 Charlotte 1,149 29,090,004 3,189,523 3,217,875 11.1% 113,567 0 0 $8.73 Chattanooga 243 3,835,006 260,581 260,581 6.8% 6,613 0 0 $6.41 Chicago 2,223 75,685,726 8,828,673 8,902,916 11.8% 268,727 0 50,288 $10.34 Cincinnati 297 7,718,253 1,196,463 1,219,491 15.8% (33,301) 0 0 $7.91 Cleveland 814 23,652,953 2,300,328 2,325,899 9.8% (42,893) 0 0 $8.36 Colorado Springs 264 6,312,073 1,026,708 1,141,399 18.1% 61,476 0 0 $7.55 Columbia 699 6,376,457 452,956 452,956 7.1% 29,580 0 473,000 $7.98 Columbus 428 10,910,136 1,185,218 1,195,411 11.0% 53,029 0 0 $7.72 Columbus GA 255 3,781,674 166,298 166,298 4.4% 12,213 0 0 $7.02 Corpus Christi 60 1,070,585 95,426 100,426 9.4% 12,267 0 0 $9.13 Dallas/Ft Worth 7,007 136,569,169 13,625,909 13,815,750 10.1% 568,088 8,220 117,492 $8.90 Davenport/Molin 28 458,809 25,012 25,012 5.5% 12,950 0 0 $7.92 Dayton 198 3,684,076 637,759 646,504 17.5% (17,344) 0 0 $9.52 Deltona/Dayton 113 1,495,524 154,923 156,823 10.5% 18,245 30,765 0 $7.99 Denver 1,732 48,689,418 5,589,067 6,165,357 12.7% 367,660 73,667 389,196 $9.50 Des Moines 217 8,385,030 588,900 588,900 7.0% 35,477 0 0 $5.91 Detroit 1,338 48,402,320 5,434,519 5,558,531 11.5% (1,347) 0 5,000 $8.10 Duluth 22 330,299 23,000 23,000 7.0% 0 0 0 $12.12 East Bay/Oaklan 1,598 56,706,352 7,861,640 8,093,359 14.3% 175,901 0 0 $12.34 El Paso 347 6,158,280 473,339 473,339 7.7% (12,533) 0 0 $13.30 Erie 12 420,485 3,273 3,273 0.8% 0 0 0 $6.54 Evansville 76 3,567,928 164,242 176,242 4.9% 2,800 0 0 $4.90 Fayetteville 102 1,014,398 141,305 141,305 13.9% (7,480) 0 0 $8.74 Fayetteville/Sprin 162 2,197,819 69,979 69,979 3.2% (2,081) 0 0 $7.60 Fort Smith 15 242,662 13,680 13,680 5.6% 0 0 0 $6.18 Fort Wayne 151 3,813,000 407,854 407,854 10.7% 8,340 0 0 $7.20 Fresno 102 1,757,108 217,307 217,307 12.4% 16,058 0 0 $7.78 Source: CoStar Property 18 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

National Industrial Market FIGURES AT A GLANCE FIRST QUARTER 2014 NATIONAL Flex Market Statistics First Quarter 2014 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Green Bay 296 8,371,747 248,250 248,250 3.0% 4,701 0 0 $6.91 Greensboro/Win 435 8,339,249 1,396,912 1,398,152 16.8% (45,039) 0 0 $7.13 Greenville/Sparta 655 10,183,011 1,723,604 1,724,968 16.9% 43,556 0 48,000 $7.19 Hampton Roads 821 14,349,809 1,603,704 1,628,913 11.4% 97,774 48,785 0 $9.13 Hartford 1,164 25,261,214 2,308,715 2,359,237 9.3% (1,791) 0 0 $7.71 Hawaii 75 1,684,667 96,987 96,987 5.8% (6,605) 0 11,500 $15.04 Houston 1,907 48,574,528 4,107,833 4,266,905 8.8% (78,497) 21,708 45,050 $8.85 Huntington/Ash 124 1,324,823 85,094 85,094 6.4% (7,400) 0 0 $7.67 Huntsville 144 5,697,606 630,986 650,911 11.4% 82,882 0 0 $9.86 Indianapolis 1,006 25,229,580 3,154,213 3,186,615 12.6% 36,937 0 0 $8.45 Inland Empire (C 873 14,837,845 1,301,111 1,311,171 8.8% 189,556 0 0 $10.52 Jackson 118 2,068,196 191,162 191,162 9.2% 12,447 0 0 $6.53 Jacksonville (Flor 310 7,471,956 668,856 679,020 9.1% 56,282 0 0 $8.76 Kansas City 535 13,407,119 1,094,082 1,108,324 8.3% 40,674 0 0 $8.19 Killeen/Temple/F 13 132,521 10,000 10,000 7.5% 0 0 0 $8.00 Kingsport/Bristol 31 1,014,549 38,610 38,610 3.8% 38,368 0 0 $5.05 Knoxville 976 12,258,633 588,543 588,543 4.8% 7,617 0 0 $6.97 Lafayette 17 513,455 28,400 28,400 5.5% 20,000 0 0 $0.00 Las Vegas 954 21,493,094 2,507,544 2,514,737 11.7% 94,137 0 0 $9.34 Lexington/Fayet 169 3,305,537 364,150 371,080 11.2% (44,021) 0 0 $6.94 Lincoln 172 2,221,929 40,404 40,404 1.8% (3,312) 0 0 $4.96 Little Rock/N Litt 568 8,805,731 763,305 763,305 8.7% (14,005) 0 0 $6.35 Long Island (New 585 24,409,526 2,429,653 2,441,328 10.0% 25,752 0 0 $21.04 Los Angeles 2,803 61,076,522 4,591,685 4,733,075 7.7% 269,882 0 0 $16.54 Louisville 458 9,983,506 690,663 763,581 7.6% 27,882 0 0 $7.42 Lubbock 20 1,038,405 15,500 22,532 2.2% 4,810 0 0 $5.60 Madison 250 7,643,696 544,622 547,811 7.2% (4,893) 0 64,151 $8.09 Marin/Sonoma 454 9,709,731 890,190 1,037,238 10.7% 3,087 0 0 $14.82 McAllen/Edinbur 15 363,886 46,184 46,184 12.7% (1,000) 0 0 $9.36 Memphis 497 9,395,387 1,870,245 1,876,166 20.0% 5,764 0 95,000 $6.97 Miami-Dade Cou 601 16,884,896 1,298,518 1,304,531 7.7% 147,556 0 0 $12.75 Milwaukee 1,281 43,288,708 2,245,308 2,410,251 5.6% 42,453 0 0 $6.99 Minneapolis 1,825 74,216,162 7,244,826 7,364,969 9.9% (143,666) 0 214,373 $8.32 Mobile 239 2,348,173 203,837 203,837 8.7% 861 0 0 $5.95 Montgomery 190 2,369,255 150,180 152,380 6.4% 7,436 0 0 $8.06 Myrtle Beach/Co 204 2,190,474 95,793 100,793 4.6% (20,150) 0 0 $6.37 Nashville 503 15,590,499 1,373,514 1,377,250 8.8% 125,926 0 3,550 $9.04 New Orleans/M 233 3,051,791 263,742 263,742 8.6% (12,597) 0 0 $8.13 Northern New Je 1,429 54,870,344 7,150,368 7,581,055 13.8% 36,606 0 0 $11.15 Ocala 45 535,319 57,029 57,029 10.7% 0 0 0 $8.23 Oklahoma City 520 9,231,980 1,296,506 1,296,506 14.0% 75,046 0 8,827 $7.34 Olympia 35 505,767 27,975 27,975 5.5% 6,057 0 0 $8.53 Omaha/Council 320 6,788,651 778,443 785,143 11.6% (43,846) 0 14,000 $7.04 Orange County 3,209 69,588,441 4,053,621 4,185,953 6.0% 53,188 0 13,530 $11.90 Orlando 1,376 28,380,834 3,446,941 3,569,678 12.6% 20,363 0 16,000 $8.48 Palm Beach Cou 601 11,933,113 980,782 1,006,282 8.4% 35,607 0 0 $11.27 Pensacola 149 1,763,985 134,385 134,385 7.6% 2,830 0 0 $5.66 Source: CoStar Property 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 19

NATIONAL FIRST QUARTER 2014 National Industrial Market FIGURES AT A GLANCE Flex Market Statistics First Quarter 2014 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Peoria 88 1,173,712 57,501 57,501 4.9% 0 0 0 $8.91 Philadelphia 3,253 84,065,465 9,864,179 10,043,094 11.9% 489,559 120,056 42,000 $9.05 Phoenix 1,136 33,856,099 6,636,610 6,904,792 20.4% (222,449) 0 154,067 $11.78 Pittsburgh 676 21,880,768 1,737,669 1,778,373 8.1% 83,863 0 130,000 $11.94 Port St Lucie/For 164 2,550,410 383,390 390,806 15.3% 20,490 0 0 $9.02 Portland 817 18,022,588 1,661,013 1,744,523 9.7% (3,630) 0 1,809,361 $10.95 Portland/South P 161 3,494,621 301,150 356,955 10.2% 2,254 0 0 $5.00 Providence 171 4,647,454 274,226 274,226 5.9% 18,802 0 0 $10.01 Raleigh/Durham 1,568 30,003,631 2,625,523 2,676,128 8.9% 100,230 12,576 0 $10.05 Reno/Sparks 367 8,560,750 955,890 974,626 11.4% 101,348 0 0 $7.63 Richmond VA 523 11,414,659 1,640,327 1,646,399 14.4% 53,782 10,400 0 $7.77 Roanoke 160 1,970,539 177,640 177,640 9.0% 15,500 0 0 $6.96 Rochester 186 12,640,160 2,229,235 2,231,835 17.7% 9,029 0 32,000 $8.95 Sacramento 1,078 22,793,261 3,808,003 3,841,207 16.9% (8,441) 0 25,242 $9.52 Salinas 44 900,684 53,439 145,021 16.1% (8,141) 0 0 $13.27 Salt Lake City 1,233 24,722,948 1,177,024 1,183,610 4.8% (23,177) 0 82,000 $7.34 San Antonio 760 12,345,037 1,184,164 1,189,564 9.6% 75,193 75,000 63,360 $9.44 San Diego 1,855 44,913,198 4,899,447 5,244,613 11.7% 137,457 0 0 $14.65 San Francisco 783 23,355,194 2,016,084 2,151,617 9.2% 952 0 0 $23.01 San Luis Obispo/ 34 706,727 84,274 84,274 11.9% 3,500 0 0 $11.22 Santa Barbara/St 164 3,947,494 112,020 120,656 3.1% (27,653) 0 0 $11.75 Santa Cruz/Wats 90 2,313,795 144,979 144,979 6.3% 16,353 0 0 $12.31 Savannah 137 1,424,461 88,227 88,227 6.2% 7,704 0 0 $10.62 Seattle/Puget So 1,024 30,708,169 3,098,766 3,217,266 10.5% 82,809 11,536 0 $14.44 Shreveport/Boss 246 2,507,207 224,779 224,779 9.0% (200) 0 0 $6.18 South Bay/San Jo 2,542 109,080,327 11,924,812 12,986,647 11.9% 252,084 0 430,532 $17.32 South Bend/Mish 79 2,549,810 128,942 131,342 5.2% (7,170) 0 0 $5.30 Southwest Florid 380 6,140,512 691,702 718,946 11.7% 20,334 17,000 0 $7.20 Spokane 263 4,037,105 367,339 367,339 9.1% (6,041) 0 0 $7.41 Springfield 59 908,038 44,109 44,109 4.9% 4,970 0 0 $5.18 St. Louis 544 15,421,283 1,441,149 1,508,139 9.8% (57,078) 0 0 $7.69 Stockton/Modes 111 4,064,382 782,749 782,749 19.3% (7,494) 0 0 $10.19 Syracuse 599 7,994,567 301,266 301,266 3.8% 17,240 25,000 0 $7.71 Tallahassee 120 2,735,417 170,895 170,895 6.2% (30,750) 0 0 $8.60 Tampa/St Peters 1,455 29,580,677 4,391,576 4,457,840 15.1% 50,275 98,618 0 $8.12 Toledo 399 7,014,050 536,002 545,642 7.8% 22,751 0 0 $6.23 Tucson 469 9,674,970 1,357,702 1,357,702 14.0% (71,041) 48,644 0 $8.16 Tulsa 304 6,447,296 362,305 362,305 5.6% 99,387 80,000 0 $6.03 Utica/Rome 171 2,444,752 96,154 96,154 3.9% 2,000 0 0 $6.78 Visalia/Porterville 64 364,260 11,240 11,240 3.1% 10,200 0 0 $6.11 Washington 1,554 65,768,719 8,350,929 8,526,665 13.0% 353,424 123,068 129,850 $12.70 West Michigan 324 12,472,423 1,289,587 1,289,587 10.3% (136,879) 0 43,200 $7.37 Westchester/So 772 26,638,927 3,065,647 3,092,331 11.6% 120,251 0 8,800 $10.36 Wichita 57 1,465,181 260,695 264,295 18.0% (18,795) 0 0 $8.03 Wilmington 496 5,447,310 432,907 432,907 7.9% 43,521 0 14,625 $7.46 Yakima 64 453,328 2,000 2,000 0.4% 0 0 0 $9.58 Youngstown/Wa 44 859,700 215,840 215,840 25.1% (2,020) 0 0 $4.78 Totals 89,854 2,258,246,572 237,251,356 244,043,680 10.8% 4,516,117 864,509 4,632,793 $10.71 Source: CoStar Property 20 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

National Industrial Market FIGURES AT A GLANCE FIRST QUARTER 2014 NATIONAL Warehouse Market Statistics First Quarter 2014 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Albany/Schenect 2,300 89,753,817 6,530,052 6,563,402 7.3% (33,385) 80,000 159,493 $4.15 Albuquerque 2,416 47,094,902 3,509,198 3,522,036 7.5% (43,847) 101,500 15,000 $5.91 Anchorage 673 13,344,820 324,718 324,718 2.4% 9,357 2,840 0 $12.13 Asheville 489 19,540,830 1,444,649 1,444,649 7.4% 17,915 14,300 0 $3.42 Atlanta 11,824 586,628,690 57,427,180 59,444,477 10.1% 4,529,834 177,000 4,276,846 $3.44 Augusta/Richmo 650 30,274,178 2,661,192 2,661,192 8.8% 227,646 0 175,000 $2.55 Austin 3,171 69,948,512 4,967,772 5,077,129 7.3% (516,508) 301,404 246,947 $6.28 Bakersfield 1,258 25,363,247 997,504 997,504 3.9% (31,185) 0 6,967 $6.01 Baltimore 3,245 181,935,832 15,486,112 15,679,665 8.6% 704,140 0 3,684,998 $4.87 Baton Rouge 1,200 21,483,705 2,424,823 2,500,473 11.6% (69,759) 30,275 50,000 $4.94 Beaumont/Port A 461 9,018,526 722,622 722,622 8.0% (32,177) 0 0 $4.66 Birmingham 3,280 120,843,916 12,295,208 12,450,719 10.3% (7,712) 0 660,869 $3.15 Boise City/Namp 1,665 37,583,009 2,823,040 2,847,554 7.6% (134,990) 0 25,000 $4.87 Boston 9,604 378,984,201 29,362,788 30,457,652 8.0% 348,465 62,454 633,045 $5.29 Bremerton/Silver 191 2,130,924 123,738 123,738 5.8% 28,914 0 0 $5.93 Broward County 5,179 107,604,490 8,289,175 8,431,652 7.8% 229,635 417,290 356,600 $7.47 Brownsville/Harl 276 9,987,212 1,585,236 1,585,236 15.9% 3,350 0 0 $3.52 Buffalo/Niagara 1,345 62,268,743 6,106,190 6,405,593 10.3% 103,524 0 0 $3.64 Charleston WV 381 13,929,440 308,062 308,062 2.2% 15,310 0 0 $6.02 Charleston/N Ch 2,155 58,782,923 4,152,698 4,427,661 7.5% 452,004 6,000 140,000 $4.37 Charlotte 6,530 273,355,576 27,058,020 27,368,880 10.0% 880,911 169,423 1,970,123 $3.32 Chattanooga 679 35,939,625 5,411,758 5,461,758 15.2% (20,135) 0 201,050 $2.98 Chicago 20,130 1,074,245,684 88,164,678 89,511,375 8.3% 1,927,820 1,308,166 4,274,200 $4.86 Cincinnati 6,338 288,119,214 17,776,786 18,790,320 6.5% 1,509,034 0 1,280,564 $3.27 Cleveland 11,593 455,516,229 34,707,933 35,349,393 7.8% 285,328 122,738 194,576 $3.39 Colorado Springs 1,596 26,856,580 1,554,397 1,611,172 6.0% 216,913 167,220 0 $5.67 Columbia 1,290 49,300,098 4,314,262 4,407,467 8.9% 883,186 0 38,500 $3.69 Columbus 4,616 242,285,783 16,296,911 16,579,193 6.8% 1,584,990 503,589 1,275,969 $3.03 Columbus GA 498 18,156,468 1,818,004 1,818,004 10.0% 87,380 0 0 $2.62 Corpus Christi 1,359 19,064,701 735,347 740,347 3.9% 64,490 30,000 18,300 $6.07 Dallas/Ft Worth 13,169 654,894,387 43,067,329 43,877,440 6.7% 4,109,538 4,989,195 14,323,369 $4.08 Davenport/Molin 344 10,938,743 679,184 732,795 6.7% 6,462 0 0 $3.70 Dayton 3,389 112,722,714 15,820,717 15,872,275 14.1% (360,005) 0 0 $3.06 Deltona/Dayton 1,292 17,913,703 1,341,843 1,393,534 7.8% 105,360 0 6,000 $4.92 Denver 8,447 236,986,040 8,652,404 9,201,879 3.9% 991,417 109,932 2,437,254 $5.55 Des Moines 1,319 48,344,251 1,591,633 1,645,214 3.4% 62,181 12,614 264,922 $4.16 Detroit 15,359 504,876,465 44,268,078 44,403,939 8.8% 906,244 303,996 829,323 $4.25 Duluth 454 10,556,483 462,753 462,753 4.4% 16,775 0 0 $5.50 East Bay/Oaklan 6,950 224,434,400 12,811,357 13,450,325 6.0% 1,191,235 374,725 2,355,436 $6.68 El Paso 1,721 55,722,081 6,979,131 6,992,464 12.5% (833,129) 0 20,000 $3.58 Erie 443 17,746,940 1,749,527 1,749,527 9.9% 11,044 0 0 $2.76 Evansville 612 27,841,830 4,328,553 4,510,053 16.2% (100,279) 0 0 $2.69 Fayetteville 352 12,218,061 1,373,365 1,373,365 11.2% (163,875) 0 0 $3.56 Fayetteville/Sprin 680 22,830,579 2,195,926 2,235,034 9.8% (94,135) 20,000 0 $3.53 Fort Smith 383 18,403,689 2,252,255 2,306,255 12.5% 27,774 0 0 $2.47 Fort Wayne 1,110 49,174,573 3,033,310 3,038,110 6.2% (236,559) 102,400 253,000 $3.46 Fresno 3,279 87,621,261 6,178,384 6,341,584 7.2% 564,305 21,285 96,000 $4.06 Source: CoStar Property 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 21

NATIONAL FIRST QUARTER 2014 National Industrial Market FIGURES AT A GLANCE Warehouse Market Statistics First Quarter 2014 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Green Bay 1,499 54,721,823 2,070,498 2,070,498 3.8% 52,063 21,000 19,200 $3.80 Greensboro/Win 5,893 254,337,622 21,080,141 21,279,911 8.4% (164,850) 2,400 2,186,560 $2.83 Greenville/Sparta 4,009 178,380,749 14,018,860 14,664,860 8.2% (416,634) 122,400 752,719 $3.05 Hampton Roads 2,822 95,556,358 7,271,025 7,556,762 7.9% 349,910 11,429 75,121 $4.60 Hartford 5,016 193,315,886 18,130,694 18,406,273 9.5% (60,417) 0 1,500,000 $3.95 Hawaii 2,459 49,308,525 1,271,074 1,315,786 2.7% (18,976) 0 204,427 $11.96 Houston 15,464 478,804,942 23,655,034 24,050,488 5.0% 1,772,484 2,779,200 4,670,235 $5.49 Huntington/Ash 508 21,000,846 627,360 627,360 3.0% 20,295 0 0 $3.83 Huntsville 489 16,987,382 1,981,334 1,990,514 11.7% (78,914) 0 0 $4.67 Indianapolis 5,519 282,067,687 17,735,236 18,187,201 6.4% 67,367 0 2,187,530 $3.57 Inland Empire (C 11,761 501,267,096 24,852,090 25,363,554 5.1% 1,641,697 2,211,491 13,710,685 $5.05 Jackson 543 20,315,130 1,871,943 1,871,943 9.2% (13,070) 0 0 $3.70 Jacksonville (Flor 3,620 115,726,466 10,152,646 10,244,266 8.9% 414,610 0 354,074 $3.73 Kansas City 6,150 252,113,693 12,731,265 12,930,264 5.1% 928,309 772,408 1,916,174 $3.98 Killeen/Temple/F 173 4,826,661 256,228 256,228 5.3% (67,054) 0 0 $4.46 Kingsport/Bristol 356 18,707,311 2,376,406 2,376,406 12.7% (172,061) 0 0 $3.02 Knoxville 1,783 60,157,395 5,569,362 5,613,778 9.3% (145,899) 320,000 0 $3.46 Lafayette 371 6,950,940 905,561 905,561 13.0% 21,362 40,364 0 $4.24 Las Vegas 3,146 94,443,363 10,103,225 10,198,055 10.8% 95,511 368,845 51,097 $5.59 Lexington/Fayet 1,226 43,951,143 1,641,159 1,641,159 3.7% 81,783 0 10,000 $4.46 Lincoln 861 24,113,222 799,219 799,219 3.3% (212,672) 19,100 0 $3.46 Little Rock/N Litt 1,936 58,816,779 4,962,954 4,962,954 8.4% (3,830) 0 0 $3.08 Long Island (New 13,349 319,486,590 15,033,916 15,231,503 4.8% (51,381) 0 545,547 $11.18 Los Angeles 34,169 929,317,214 37,793,988 39,618,400 4.3% 2,038,055 393,847 1,802,544 $7.16 Louisville 4,197 172,566,566 11,043,557 11,375,880 6.6% 873,449 78,512 1,037,000 $3.38 Lubbock 2,028 32,361,593 654,569 723,794 2.2% 57,154 0 0 $3.66 Madison 1,961 81,206,266 5,026,467 5,804,100 7.1% (98,470) 0 86,280 $3.87 Marin/Sonoma 1,758 30,213,366 1,198,589 1,263,089 4.2% 210,245 0 18,000 $7.97 McAllen/Edinbur 362 15,696,119 2,030,565 2,089,565 13.3% 23,324 0 60,000 $4.22 Memphis 3,274 229,942,725 27,204,130 27,275,830 11.9% 296,934 514,980 2,170,252 $2.69 Miami-Dade Cou 8,204 212,457,339 12,337,460 12,483,048 5.9% 768,802 180,025 1,640,902 $8.07 Milwaukee 6,398 270,020,106 19,242,768 19,242,768 7.1% 847,494 120,900 720,689 $3.97 Minneapolis 7,906 296,538,198 15,072,489 15,753,719 5.3% 1,095,219 285,000 901,585 $5.53 Mobile 1,062 25,532,675 2,936,115 2,936,115 11.5% 267,102 0 0 $4.11 Montgomery 405 19,579,719 3,183,226 3,188,566 16.3% 60,714 0 0 $2.99 Myrtle Beach/Co 214 3,473,653 422,054 422,054 12.2% (15,400) 0 0 $4.19 Nashville 3,740 187,156,935 15,746,081 16,053,140 8.6% (366,776) 240,000 156,497 $3.49 New Orleans/M 3,458 61,216,921 4,365,144 4,380,144 7.2% 72,231 0 5,584 $5.06 Northern New Je 15,776 745,486,738 57,471,191 59,859,186 8.0% 285,303 1,091,244 6,303,669 $5.51 Ocala 552 14,748,785 1,046,973 1,046,973 7.1% 30,730 0 0 $3.68 Oklahoma City 5,326 98,423,019 5,291,664 5,370,920 5.5% 213,840 375,976 253,074 $4.22 Olympia 340 11,041,473 948,079 960,079 8.7% 21,408 0 0 $5.20 Omaha/Council 2,703 73,799,626 2,337,679 2,569,739 3.5% 192,275 79,851 10,000 $4.32 Orange County 9,385 232,408,957 8,857,082 9,328,885 4.0% 485,708 0 0 $7.75 Orlando 5,744 149,931,223 13,232,697 13,314,613 8.9% 5,690 74,814 1,335,091 $4.95 Palm Beach Cou 2,598 46,927,748 2,784,789 2,908,192 6.2% 138,144 210,400 650,000 $8.07 Pensacola 934 14,674,408 1,005,770 1,005,770 6.9% 28,332 0 0 $4.37 Source: CoStar Property 22 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

National Industrial Market FIGURES AT A GLANCE FIRST QUARTER 2014 NATIONAL Warehouse Market Statistics First Quarter 2014 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Peoria 320 15,728,914 1,092,052 1,092,052 6.9% (21,572) 0 0 $3.63 Philadelphia 16,762 933,570,797 78,136,640 79,317,096 8.5% (663,075) 94,000 9,759,800 $4.12 Phoenix 8,754 268,930,901 31,114,452 32,872,859 12.2% 819,475 2,790,757 2,397,654 $5.54 Pittsburgh 4,105 151,939,992 10,938,566 10,961,852 7.2% 598,435 40,000 661,403 $4.56 Port St Lucie/For 1,048 17,779,111 1,350,403 1,395,872 7.9% 125,751 0 0 $6.08 Portland 5,231 177,560,808 9,256,378 9,419,945 5.3% 215,716 0 1,054,385 $5.61 Portland/South P 860 24,937,482 1,319,748 1,339,748 5.4% 71,777 0 3,125 $4.47 Providence 2,528 77,365,880 5,968,436 5,978,436 7.7% (468,662) 30,000 256,235 $4.27 Raleigh/Durham 2,344 89,372,471 7,470,005 8,171,700 9.1% (99,271) 30,000 234,246 $3.87 Reno/Sparks 1,522 76,533,779 7,133,827 7,417,300 9.7% 538,134 524,800 1,331,010 $3.84 Richmond VA 2,667 106,326,511 8,511,218 8,552,650 8.0% 265,124 0 0 $3.55 Roanoke 649 26,554,170 2,654,282 2,767,282 10.4% 6,575 0 0 $3.38 Rochester 1,906 82,601,463 6,326,322 7,143,463 8.6% (271,077) 0 12,528 $3.99 Sacramento 6,274 192,364,926 20,775,780 21,028,298 10.9% 660,432 0 742,164 $4.38 Salinas 758 19,113,547 1,080,010 1,210,746 6.3% 287,742 0 0 $5.03 Salt Lake City 6,187 189,312,351 7,066,726 7,281,086 3.8% 286,927 116,783 279,582 $4.39 San Antonio 3,638 99,979,712 4,946,121 5,068,809 5.1% 1,369,074 1,119,091 508,146 $5.14 San Diego 6,701 144,644,734 9,178,561 9,510,124 6.6% 875,365 226,579 115,000 $8.85 San Francisco 4,074 71,530,354 3,283,601 3,388,493 4.7% 107,311 0 0 $10.86 San Luis Obispo/ 433 6,290,735 175,309 190,261 3.0% (12,309) 0 0 $8.44 Santa Barbara/St 1,034 11,140,805 469,939 480,019 4.3% 149,333 142,000 0 $8.86 Santa Cruz/Wats 512 8,853,759 566,909 582,009 6.6% (67,969) 0 0 $9.05 Savannah 1,082 47,177,564 4,316,758 4,530,008 9.6% 1,043,453 0 0 $3.69 Seattle/Puget So 7,135 269,513,532 13,381,046 13,817,116 5.1% 910,217 871,446 1,885,455 $6.13 Shreveport/Boss 706 24,750,487 8,399,063 8,430,761 34.1% (45,045) 0 0 $3.00 South Bay/San Jo 3,692 92,552,896 4,427,827 4,725,824 5.1% 289,313 0 0 $8.00 South Bend/Mish 777 30,017,657 1,888,176 1,888,176 6.3% 573,308 0 0 $2.94 Southwest Florid 3,220 40,866,281 2,673,351 2,706,351 6.6% (15,530) 0 0 $5.54 Spokane 1,737 39,017,680 1,743,564 1,761,368 4.5% (47,413) 0 200,000 $4.25 Springfield 690 19,148,479 2,089,848 2,126,723 11.1% (4,844) 2,580 0 $4.25 St. Louis 5,534 247,130,678 19,164,992 19,270,601 7.8% 782,655 227,500 500,000 $3.78 Stockton/Modes 3,155 145,205,530 13,604,997 13,724,997 9.5% 292,186 0 939,000 $3.80 Syracuse 1,113 55,174,603 6,647,532 6,647,532 12.0% 141,187 107,777 0 $3.25 Tallahassee 943 13,057,067 1,148,182 1,172,182 9.0% (14,825) 0 0 $4.54 Tampa/St Peters 10,585 242,588,169 20,948,827 21,178,634 8.7% 1,025,233 561,531 1,182,800 $4.72 Toledo 2,777 134,468,178 10,291,440 10,311,040 7.7% 165,786 29,918 1,814 $2.91 Tucson 2,018 30,247,717 3,091,321 3,157,160 10.4% 25,951 7,447 0 $5.77 Tulsa 3,442 81,539,887 3,920,642 4,025,817 4.9% (47,357) 5,000 167,723 $4.01 Utica/Rome 370 23,544,604 3,009,119 3,105,419 13.2% 2,340 0 63,170 $2.80 Visalia/Porterville 972 30,019,807 1,333,223 1,647,073 5.5% 284,650 0 9,955 $3.86 Washington 4,510 146,872,680 12,208,832 12,888,051 8.8% 460,637 203,672 1,447,940 $8.23 West Michigan 8,351 303,124,609 17,419,629 17,587,767 5.8% 509,483 0 720,000 $3.06 Westchester/So 6,070 176,051,552 18,016,849 18,118,924 10.3% 130,539 38,000 15,750 $6.95 Wichita 1,748 44,878,123 1,767,200 1,828,101 4.1% 162,482 0 0 $4.01 Wilmington 522 14,000,428 3,013,625 3,013,625 21.5% 47,539 0 0 $2.92 Yakima 454 12,270,244 537,155 556,355 4.5% 2,352 0 0 $4.33 Youngstown/Wa 1,455 56,585,745 7,808,948 7,808,948 13.8% 640 0 12,000 $2.65 Totals 528,507 18,694,884,455 1,368,163,589 1,399,917,954 7.5% 42,444,114 26,911,413 110,104,772 $4.73 Source: CoStar Property 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 23

NATIONAL FIRST QUARTER 2014 National Industrial Market FIGURES AT A GLANCE Total Industrial Market Statistics First Quarter 2014 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Albany/Schenect 2,626 98,824,405 7,185,371 7,218,721 7.3% (21,994) 80,000 159,493 $4.59 Albuquerque 2,552 50,597,595 3,939,084 3,959,194 7.8% (26,348) 101,500 15,000 $6.60 Anchorage 811 15,997,622 397,597 401,797 2.5% 8,123 2,840 0 $12.67 Asheville 735 23,114,070 1,756,894 1,765,894 7.6% (4,188) 14,300 0 $3.86 Atlanta 16,045 655,750,850 66,711,868 68,887,989 10.5% 4,729,105 177,000 4,276,846 $3.94 Augusta/Richmo 1,063 33,453,235 3,006,764 3,006,764 9.0% 206,572 0 195,800 $2.86 Austin 3,730 92,174,553 8,208,736 8,411,410 9.1% (1,135,326) 301,404 246,947 $7.67 Bakersfield 1,468 27,634,357 1,240,450 1,240,450 4.5% (31,934) 0 6,967 $6.32 Baltimore 4,569 229,981,488 19,914,159 20,304,038 8.8% 956,396 0 3,715,118 $5.90 Baton Rouge 1,383 23,878,440 2,614,142 2,700,292 11.3% (70,764) 30,275 50,000 $5.11 Beaumont/Port A 632 10,660,710 793,372 793,372 7.4% (33,677) 0 0 $4.80 Birmingham 4,068 131,846,316 13,036,314 13,191,825 10.0% (63,383) 0 682,748 $3.41 Boise City/Namp 1,910 41,825,186 3,275,220 3,299,734 7.9% (104,991) 0 25,000 $5.19 Boston 12,171 499,910,814 42,756,464 44,048,314 8.8% 568,243 110,400 659,045 $6.20 Bremerton/Silver 264 2,712,940 145,300 145,300 5.4% 30,299 0 0 $6.33 Broward County 6,249 127,136,648 9,938,699 10,093,565 7.9% 338,448 428,810 356,600 $7.96 Brownsville/Harl 283 10,136,889 1,596,252 1,596,252 15.7% 3,350 0 0 $3.52 Buffalo/Niagara 1,487 68,008,295 6,592,742 6,899,745 10.1% 96,261 0 0 $3.93 Charleston WV 437 14,431,625 380,607 380,607 2.6% 15,310 0 0 $6.00 Charleston/N Ch 2,689 64,158,992 4,675,315 4,975,571 7.8% 437,616 6,000 140,000 $4.78 Charlotte 7,679 302,445,580 30,247,543 30,586,755 10.1% 994,478 169,423 1,970,123 $3.82 Chattanooga 922 39,774,631 5,672,339 5,722,339 14.4% (13,522) 0 201,050 $3.09 Chicago 22,353 1,149,931,410 96,993,351 98,414,291 8.6% 2,196,547 1,308,166 4,324,488 $5.17 Cincinnati 6,635 295,837,467 18,973,249 20,009,811 6.8% 1,475,733 0 1,280,564 $3.47 Cleveland 12,407 479,169,182 37,008,261 37,675,292 7.9% 242,435 122,738 194,576 $3.67 Colorado Springs 1,860 33,168,653 2,581,105 2,752,571 8.3% 278,389 167,220 0 $6.16 Columbia 1,989 55,676,555 4,767,218 4,860,423 8.7% 912,766 0 511,500 $3.98 Columbus 5,044 253,195,919 17,482,129 17,774,604 7.0% 1,638,019 503,589 1,275,969 $3.22 Columbus GA 753 21,938,142 1,984,302 1,984,302 9.0% 99,593 0 0 $2.89 Corpus Christi 1,419 20,135,286 830,773 840,773 4.2% 76,757 30,000 18,300 $6.34 Dallas/Ft Worth 20,176 791,463,556 56,693,238 57,693,190 7.3% 4,677,626 4,997,415 14,440,861 $5.20 Davenport/Molin 372 11,397,552 704,196 757,807 6.6% 19,412 0 0 $3.88 Dayton 3,587 116,406,790 16,458,476 16,518,779 14.2% (377,349) 0 0 $3.32 Deltona/Dayton 1,405 19,409,227 1,496,766 1,550,357 8.0% 123,605 30,765 6,000 $5.16 Denver 10,179 285,675,458 14,241,471 15,367,236 5.4% 1,359,077 183,599 2,826,450 $6.79 Des Moines 1,536 56,729,281 2,180,533 2,234,114 3.9% 97,658 12,614 264,922 $4.41 Detroit 16,697 553,278,785 49,702,597 49,962,470 9.0% 904,897 303,996 834,323 $4.63 Duluth 476 10,886,782 485,753 485,753 4.5% 16,775 0 0 $5.72 East Bay/Oaklan 8,548 281,140,752 20,672,997 21,543,684 7.7% 1,367,136 374,725 2,355,436 $8.25 El Paso 2,068 61,880,361 7,452,470 7,465,803 12.1% (845,662) 0 20,000 $4.08 Erie 455 18,167,425 1,752,800 1,752,800 9.6% 11,044 0 0 $2.76 Evansville 688 31,409,758 4,492,795 4,686,295 14.9% (97,479) 0 0 $2.80 Fayetteville 454 13,232,459 1,514,670 1,514,670 11.4% (171,355) 0 0 $3.79 Fayetteville/Sprin 842 25,028,398 2,265,905 2,305,013 9.2% (96,216) 20,000 0 $3.55 Fort Smith 398 18,646,351 2,265,935 2,319,935 12.4% 27,774 0 0 $2.49 Fort Wayne 1,261 52,987,573 3,441,164 3,445,964 6.5% (228,219) 102,400 253,000 $3.56 Fresno 3,381 89,378,369 6,395,691 6,558,891 7.3% 580,363 21,285 96,000 $4.15 Source: CoStar Property 24 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

National Industrial Market FIGURES AT A GLANCE FIRST QUARTER 2014 NATIONAL Total Industrial Market Statistics First Quarter 2014 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Green Bay 1,795 63,093,570 2,318,748 2,318,748 3.7% 56,764 21,000 19,200 $4.05 Greensboro/Win 6,328 262,676,871 22,477,053 22,678,063 8.6% (209,889) 2,400 2,186,560 $2.96 Greenville/Sparta 4,664 188,563,760 15,742,464 16,389,828 8.7% (373,078) 122,400 800,719 $3.28 Hampton Roads 3,643 109,906,167 8,874,729 9,185,675 8.4% 447,684 60,214 75,121 $5.18 Hartford 6,180 218,577,100 20,439,409 20,765,510 9.5% (62,208) 0 1,500,000 $4.27 Hawaii 2,534 50,993,192 1,368,061 1,412,773 2.8% (25,581) 0 215,927 $12.12 Houston 17,371 527,379,470 27,762,867 28,317,393 5.4% 1,693,987 2,800,908 4,715,285 $5.85 Huntington/Ash 632 22,325,669 712,454 712,454 3.2% 12,895 0 0 $3.86 Huntsville 633 22,684,988 2,612,320 2,641,425 11.6% 3,968 0 0 $5.86 Indianapolis 6,525 307,297,267 20,889,449 21,373,816 7.0% 104,304 0 2,187,530 $3.88 Inland Empire (C 12,634 516,104,941 26,153,201 26,674,725 5.2% 1,831,253 2,211,491 13,710,685 $5.27 Jackson 661 22,383,326 2,063,105 2,063,105 9.2% (623) 0 0 $3.89 Jacksonville (Flor 3,930 123,198,422 10,821,502 10,923,286 8.9% 470,892 0 354,074 $3.97 Kansas City 6,685 265,520,812 13,825,347 14,038,588 5.3% 968,983 772,408 1,916,174 $4.19 Killeen/Temple/F 186 4,959,182 266,228 266,228 5.4% (67,054) 0 0 $4.53 Kingsport/Bristol 387 19,721,860 2,415,016 2,415,016 12.2% (133,693) 0 0 $3.13 Knoxville 2,759 72,416,028 6,157,905 6,202,321 8.6% (138,282) 320,000 0 $3.72 Lafayette 388 7,464,395 933,961 933,961 12.5% 41,362 40,364 0 $4.24 Las Vegas 4,100 115,936,457 12,610,769 12,712,792 11.0% 189,648 368,845 51,097 $6.13 Lexington/Fayet 1,395 47,256,680 2,005,309 2,012,239 4.3% 37,762 0 10,000 $4.81 Lincoln 1,033 26,335,151 839,623 839,623 3.2% (215,984) 19,100 0 $3.58 Little Rock/N Litt 2,504 67,622,510 5,726,259 5,726,259 8.5% (17,835) 0 0 $3.28 Long Island (New 13,934 343,896,116 17,463,569 17,672,831 5.1% (25,629) 0 545,547 $11.96 Los Angeles 36,972 990,393,736 42,385,673 44,351,475 4.5% 2,307,937 393,847 1,802,544 $7.76 Louisville 4,655 182,550,072 11,734,220 12,139,461 6.6% 901,331 78,512 1,037,000 $3.50 Lubbock 2,048 33,399,998 670,069 746,326 2.2% 61,964 0 0 $3.84 Madison 2,211 88,849,962 5,571,089 6,351,911 7.1% (103,363) 0 150,431 $4.12 Marin/Sonoma 2,212 39,923,097 2,088,779 2,300,327 5.8% 213,332 0 18,000 $9.94 McAllen/Edinbur 377 16,060,005 2,076,749 2,135,749 13.3% 22,324 0 60,000 $4.41 Memphis 3,771 239,338,112 29,074,375 29,151,996 12.2% 302,698 514,980 2,265,252 $2.90 Miami-Dade Cou 8,805 229,342,235 13,635,978 13,787,579 6.0% 916,358 180,025 1,640,902 $8.32 Milwaukee 7,679 313,308,814 21,488,076 21,653,019 6.9% 889,947 120,900 720,689 $4.17 Minneapolis 9,731 370,754,360 22,317,315 23,118,688 6.2% 951,553 285,000 1,115,958 $6.04 Mobile 1,301 27,880,848 3,139,952 3,139,952 11.3% 267,963 0 0 $4.19 Montgomery 595 21,948,974 3,333,406 3,340,946 15.2% 68,150 0 0 $3.15 Myrtle Beach/Co 418 5,664,127 517,847 522,847 9.2% (35,550) 0 0 $4.55 Nashville 4,243 202,747,434 17,119,595 17,430,390 8.6% (240,850) 240,000 160,047 $3.85 New Orleans/M 3,691 64,268,712 4,628,886 4,643,886 7.2% 59,634 0 5,584 $5.21 Northern New Je 17,205 800,357,082 64,621,559 67,440,241 8.4% 321,909 1,091,244 6,303,669 $5.92 Ocala 597 15,284,104 1,104,002 1,104,002 7.2% 30,730 0 0 $3.70 Oklahoma City 5,846 107,654,999 6,588,170 6,667,426 6.2% 288,886 375,976 261,901 $4.55 Olympia 375 11,547,240 976,054 988,054 8.6% 27,465 0 0 $5.26 Omaha/Council 3,023 80,588,277 3,116,122 3,354,882 4.2% 148,429 79,851 24,000 $4.61 Orange County 12,594 301,997,398 12,910,703 13,514,838 4.5% 538,896 0 13,530 $8.82 Orlando 7,120 178,312,057 16,679,638 16,884,291 9.5% 26,053 74,814 1,351,091 $5.41 Palm Beach Cou 3,199 58,860,861 3,765,571 3,914,474 6.7% 173,751 210,400 650,000 $8.65 Pensacola 1,083 16,438,393 1,140,155 1,140,155 6.9% 31,162 0 0 $4.46 Source: CoStar Property 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 25

NATIONAL FIRST QUARTER 2014 National Industrial Market FIGURES AT A GLANCE Total Industrial Market Statistics First Quarter 2014 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Peoria 408 16,902,626 1,149,553 1,149,553 6.8% (21,572) 0 0 $3.74 Philadelphia 20,015 1,017,636,262 88,000,819 89,360,190 8.8% (173,516) 214,056 9,801,800 $4.52 Phoenix 9,890 302,787,000 37,751,062 39,777,651 13.1% 597,026 2,790,757 2,551,721 $6.68 Pittsburgh 4,781 173,820,760 12,676,235 12,740,225 7.3% 682,298 40,000 791,403 $5.29 Port St Lucie/For 1,212 20,329,521 1,733,793 1,786,678 8.8% 146,241 0 0 $6.65 Portland 6,048 195,583,396 10,917,391 11,164,468 5.7% 212,086 0 2,863,746 $6.26 Portland/South P 1,021 28,432,103 1,620,898 1,696,703 6.0% 74,031 0 3,125 $4.55 Providence 2,699 82,013,334 6,242,662 6,252,662 7.6% (449,860) 30,000 256,235 $4.49 Raleigh/Durham 3,912 119,376,102 10,095,528 10,847,828 9.1% 959 42,576 234,246 $5.21 Reno/Sparks 1,889 85,094,529 8,089,717 8,391,926 9.9% 639,482 524,800 1,331,010 $4.08 Richmond VA 3,190 117,741,170 10,151,545 10,199,049 8.7% 318,906 10,400 0 $4.09 Roanoke 809 28,524,709 2,831,922 2,944,922 10.3% 22,075 0 0 $3.57 Rochester 2,092 95,241,623 8,555,557 9,375,298 9.8% (262,048) 0 44,528 $4.28 Sacramento 7,352 215,158,187 24,583,783 24,869,505 11.6% 651,991 0 767,406 $5.00 Salinas 802 20,014,231 1,133,449 1,355,767 6.8% 279,601 0 0 $5.22 Salt Lake City 7,420 214,035,299 8,243,750 8,464,696 4.0% 263,750 116,783 361,582 $4.74 San Antonio 4,398 112,324,749 6,130,285 6,258,373 5.6% 1,444,267 1,194,091 571,506 $5.75 San Diego 8,556 189,557,932 14,078,008 14,754,737 7.8% 1,012,822 226,579 115,000 $10.35 San Francisco 4,857 94,885,548 5,299,685 5,540,110 5.8% 108,263 0 0 $14.46 San Luis Obispo/ 467 6,997,462 259,583 274,535 3.9% (8,809) 0 0 $8.85 Santa Barbara/St 1,198 15,088,299 581,959 600,675 4.0% 121,680 142,000 0 $9.65 Santa Cruz/Wats 602 11,167,554 711,888 726,988 6.5% (51,616) 0 0 $9.94 Savannah 1,219 48,602,025 4,404,985 4,618,235 9.5% 1,051,157 0 0 $3.84 Seattle/Puget So 8,159 300,221,701 16,479,812 17,034,382 5.7% 993,026 882,982 1,885,455 $7.21 Shreveport/Boss 952 27,257,694 8,623,842 8,655,540 31.8% (45,245) 0 0 $3.08 South Bay/San Jo 6,234 201,633,223 16,352,639 17,712,471 8.8% 541,397 0 430,532 $14.49 South Bend/Mish 856 32,567,467 2,017,118 2,019,518 6.2% 566,138 0 0 $3.05 Southwest Florid 3,600 47,006,793 3,365,053 3,425,297 7.3% 4,804 17,000 0 $5.82 Spokane 2,000 43,054,785 2,110,903 2,128,707 4.9% (53,454) 0 200,000 $4.53 Springfield 749 20,056,517 2,133,957 2,170,832 10.8% 126 2,580 0 $4.27 St. Louis 6,078 262,551,961 20,606,141 20,778,740 7.9% 725,577 227,500 500,000 $3.99 Stockton/Modes 3,266 149,269,912 14,387,746 14,507,746 9.7% 284,692 0 939,000 $3.84 Syracuse 1,712 63,169,170 6,948,798 6,948,798 11.0% 158,427 132,777 0 $3.47 Tallahassee 1,063 15,792,484 1,319,077 1,343,077 8.5% (45,575) 0 0 $4.87 Tampa/St Peters 12,040 272,168,846 25,340,403 25,636,474 9.4% 1,075,508 660,149 1,182,800 $5.14 Toledo 3,176 141,482,228 10,827,442 10,856,682 7.7% 188,537 29,918 1,814 $3.00 Tucson 2,487 39,922,687 4,449,023 4,514,862 11.3% (45,090) 56,091 0 $6.39 Tulsa 3,746 87,987,183 4,282,947 4,388,122 5.0% 52,030 85,000 167,723 $4.13 Utica/Rome 541 25,989,356 3,105,273 3,201,573 12.3% 4,340 0 63,170 $2.93 Visalia/Porterville 1,036 30,384,067 1,344,463 1,658,313 5.5% 294,850 0 9,955 $3.86 Washington 6,064 212,641,399 20,559,761 21,414,716 10.1% 814,061 326,740 1,577,790 $9.67 West Michigan 8,675 315,597,032 18,709,216 18,877,354 6.0% 372,604 0 763,200 $3.25 Westchester/So 6,842 202,690,479 21,082,496 21,211,255 10.5% 250,790 38,000 24,550 $7.29 Wichita 1,805 46,343,304 2,027,895 2,092,396 4.5% 143,687 0 0 $4.18 Wilmington 1,018 19,447,738 3,446,532 3,446,532 17.7% 91,060 0 14,625 $3.40 Yakima 518 12,723,572 539,155 558,355 4.4% 2,352 0 0 $4.40 Youngstown/Wa 1,499 57,445,445 8,024,788 8,024,788 14.0% (1,380) 0 12,000 $2.71 Totals 618,361 20,953,131,027 1,605,414,945 1,643,961,634 7.8% 46,960,231 27,775,922 114,737,565 $5.39 Source: CoStar Property 26 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

National Industrial Market FIGURES AT A GLANCE FIRST QUARTER 2014 NATIONAL Flex Market Statistics* First Quarter 2014 Existing Inventory Vacancy Net Deliveries UC Inventory Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates 2014 1q 61,000 1,660,677,343 183,227,814 188,851,899 11.4% 3,961,919 15 528,915 33 1,711,717 $11.34 2013 4q 61,004 1,661,615,661 187,959,560 193,752,136 11.7% 5,236,807 16 726,831 42 1,921,386 $11.19 2013 3q 61,000 1,661,571,039 192,988,514 198,944,321 12.0% 4,418,662 21 1,017,590 44 1,896,204 $10.98 2013 2q 60,986 1,660,780,677 196,274,962 202,572,621 12.2% 3,900,078 16 1,006,339 47 2,462,739 $10.87 2013 1q 60,974 1,660,028,545 199,208,939 205,720,567 12.4% 4,298,155 22 907,412 48 2,778,598 $10.75 2012 60,957 1,659,192,624 202,597,035 209,182,801 12.6% 11,080,380 61 2,684,756 59 3,336,287 $10.60 2011 60,920 1,657,874,666 211,663,852 218,945,223 13.2% 10,809,103 75 3,544,884 52 2,540,421 $10.36 2010 60,887 1,656,710,257 219,402,224 228,589,917 13.8% (266,204) 123 3,612,696 56 3,397,526 $10.39 2009 60,779 1,653,621,184 212,746,185 225,234,640 13.6% (16,922,305) 306 11,707,279 94 3,028,026 $10.93 2008 60,498 1,643,476,349 187,006,133 198,167,500 12.1% 4,835,516 709 20,813,840 256 10,636,802 $12.28 2007 59,806 1,624,020,870 174,309,969 183,547,537 11.3% 21,715,375 804 20,826,203 529 16,192,834 $11.88 2006 59,034 1,605,255,664 174,432,594 186,497,706 11.6% 28,094,068 926 22,434,256 624 18,192,658 $11.12 2005 58,147 1,584,817,013 178,884,210 194,153,123 12.3% 39,899,073 840 22,139,652 753 19,141,496 $10.31 2004 57,329 1,563,594,129 192,113,889 212,829,312 13.6% 24,263,673 757 18,917,938 675 18,739,730 $9.82 2003 56,598 1,545,698,217 193,022,526 219,197,073 14.2% (2,989,706) 636 15,624,596 582 15,819,219 $10.16 2002 55,988 1,531,354,551 173,606,805 201,827,262 13.2% (4,204,514) 811 27,326,996 485 14,036,529 $10.51 Source: CoStar Property * Select markets included in this historical chart - see Methodology page. Quoted Warehouse Market Statistics* First Quarter 2014 Existing Inventory Vacancy Net Deliveries Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates 2014 1q 354,837 13,102,697,252 952,790,823 975,593,736 7.4% 32,644,290 177 22,391,806 388 94,524,662 $5.04 2013 4q 354,721 13,083,879,801 965,679,298 989,420,575 7.6% 55,401,326 119 17,639,297 483 96,976,168 $5.02 2013 3q 354,650 13,069,987,847 1,004,429,198 1,030,929,947 7.9% 44,823,701 142 26,091,638 439 84,161,382 $5.00 2013 2q 354,561 13,050,054,870 1,026,992,741 1,055,820,671 8.1% 34,859,711 129 18,273,402 419 76,430,539 $4.95 2013 1q 354,473 13,035,068,739 1,046,934,215 1,075,694,251 8.3% 35,986,059 119 15,018,972 370 72,237,553 $4.91 2012 354,421 13,029,275,225 1,073,804,069 1,105,886,796 8.5% 121,746,559 445 50,488,049 306 52,928,404 $4.87 2011 354,196 12,997,343,053 1,160,779,944 1,195,701,183 9.2% 108,105,834 388 32,352,321 282 34,322,555 $4.79 2010 353,990 12,981,517,429 1,243,188,093 1,287,981,393 9.9% 19,177,377 467 31,777,999 289 26,871,788 $4.83 2009 353,701 12,969,413,764 1,243,450,727 1,295,055,105 10.0% (143,617,865) 1,235 87,911,951 361 27,662,248 $5.07 2008 352,661 12,893,226,139 1,030,629,544 1,075,249,615 8.3% 68,245,865 2,722 201,921,981 977 79,659,338 $5.43 2007 350,182 12,710,202,479 926,735,768 960,471,820 7.6% 189,210,287 3,319 199,299,370 2,015 164,636,142 $5.36 2006 347,093 12,527,033,312 930,991,227 966,512,940 7.7% 215,074,515 3,574 214,254,671 2,538 169,701,495 $5.17 2005 343,744 12,327,806,517 946,347,349 982,360,660 8.0% 195,544,908 3,528 182,137,289 2,792 177,737,440 $4.95 2004 340,419 12,164,792,907 970,264,481 1,014,891,958 8.3% 154,073,883 3,289 154,080,366 2,782 153,963,998 $4.73 2003 337,451 12,032,949,986 984,020,552 1,037,122,920 8.6% 68,576,150 2,809 120,650,188 2,474 124,659,789 $4.70 2002 334,852 11,926,032,824 925,767,312 998,781,908 8.4% 24,865,383 3,211 165,822,338 2,149 106,504,388 $4.80 Source: CoStar Property * Select markets included in this historical chart - see Methodology page. UC Inventory Quoted Total Industrial Market Statistics* First Quarter 2014 Existing Inventory Vacancy Net Deliveries UC Inventory Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates 2014 1q 415,837 14,763,374,595 1,136,018,637 1,164,445,635 7.9% 36,606,209 192 22,920,721 421 96,236,379 $5.83 2013 4q 415,725 14,745,495,462 1,153,638,858 1,183,172,711 8.0% 60,638,133 135 18,366,128 525 98,897,554 $5.78 2013 3q 415,650 14,731,558,886 1,197,417,712 1,229,874,268 8.3% 49,242,363 163 27,109,228 483 86,057,586 $5.72 2013 2q 415,547 14,710,835,547 1,223,267,703 1,258,393,292 8.6% 38,759,789 145 19,279,741 466 78,893,278 $5.65 2013 1q 415,447 14,695,097,284 1,246,143,154 1,281,414,818 8.7% 40,284,214 141 15,926,384 418 75,016,151 $5.60 2012 415,378 14,688,467,849 1,276,401,104 1,315,069,597 9.0% 132,826,939 506 53,172,805 365 56,264,691 $5.54 2011 415,116 14,655,217,719 1,372,443,796 1,414,646,406 9.7% 118,914,937 463 35,897,205 334 36,862,976 $5.44 2010 414,877 14,638,227,686 1,462,590,317 1,516,571,310 10.4% 18,911,173 590 35,390,695 345 30,269,314 $5.48 2009 414,480 14,623,034,948 1,456,196,912 1,520,289,745 10.4% (160,540,170) 1,541 99,619,230 455 30,690,274 $5.77 2008 413,159 14,536,702,488 1,217,635,677 1,273,417,115 8.8% 73,081,381 3,431 222,735,821 1,233 90,296,140 $6.30 2007 409,988 14,334,223,349 1,101,045,737 1,144,019,357 8.0% 210,925,662 4,123 220,125,573 2,544 180,828,976 $6.23 2006 406,127 14,132,288,976 1,105,423,821 1,153,010,646 8.2% 243,168,583 4,500 236,688,927 3,162 187,894,153 $6.03 2005 401,891 13,912,623,530 1,125,231,559 1,176,513,783 8.5% 235,443,981 4,368 204,276,941 3,545 196,878,936 $5.80 2004 397,748 13,728,387,036 1,162,378,370 1,227,721,270 8.9% 178,337,556 4,046 172,998,304 3,457 172,703,728 $5.63 2003 394,049 13,578,648,203 1,177,043,078 1,256,319,993 9.3% 65,586,444 3,445 136,274,784 3,056 140,479,008 $5.69 2002 390,840 13,457,387,375 1,099,374,117 1,200,609,170 8.9% 20,660,869 4,022 193,149,334 2,634 120,540,917 $5.24 Source: CoStar Property * Select markets included in this historical chart - see Methodology page. Quoted 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 27

NATIONAL FIRST QUARTER 2014 National Industrial Market LEASING ACTIVITY Historical Rental Rates* $14.00 Flex Warehouse Total Market $12.00 $10.00 Dollars/SF/Year $8.00 $6.00 $4.00 $2.00 $0.00 2000 4q 2001 4q 2002 4q 2003 4q 2004 4q 2005 4q 2006 4q 2007 4q 2008 4q 2009 4q 2010 4q 2011 4q 2012 4q 2013 4q Source: CoStar Property * Select markets included in this historical chart - see Methodology page. Vacancy by Available Space Type Percent of All Vacant Space in Direct vs. Sublet 2% Direct Sublet Vacancy by Building Type Percent of All Vacant Space by Building Type Flex Warehouse 15% 85% 98% Source: CoStar Property Source: CoStar Property Future Space Available Space Scheduled to be Available for Occupancy in the Future* 120.0 100.0 101.74 80.0 60.0 40.0 20.0 0.0 31.49 15.55 8.78 5.79 1.09 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q * includes Under Construction Spaces Source: CoStar Property 28 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

National Industrial Market LEASING ACTIVITY FIRST QUARTER 2014 NATIONAL Select Top Industrial Leases Based on Leased Square Footage For Deals Signed in 2014 Building Market SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company 1 I-94 Chicago 1,000,000 1st Amazon N/A N/A 2 Pinnacle XV Chicago 898,560 1st Pactiv Corporation N/A Pizzuti Companies 3 Carter Distribution Center - Building One Dallas/Ft Worth 725,709 1st Whirlpool Corporation N/A Lee & Associates 4 Greens Crossing I Houston 497,867 1st HD Supply Holdings, Inc. N/A NAI Houston 5 895 Upper Express Dr Chicago 476,030 1st DHL Global Forwarding Arthur J. Rogers & Co. Lee & Associates of IL, LLC 6 2211 Hitzert Ct St. Louis 433,520 1st Wainwright Industries N/A JLL 7 Port Reading Business Park - Building 3 Northern New Jersey 405,679 1st NFI Industries N/A Cushman & Wakefield of New Jersey, 8 Canyon Commerce Center - Bldg B* Inland Empire (California) 355,182 1st Ozburn Hessey Logistics N/A Colliers International 9 South Rialto Logistics Center Inland Empire (California) 328,691 1st Masterbrands CBRE CBRE 10 4637 Old Port Royal Rd Nashville 328,050 1st Integrity Nutraceuticals Cassidy Turley Crown Enterprises Inc 11 Port Union at Union Centre - Building F Cincinnati 292,500 1st Genco, Inc. N/A Cassidy Turley 12 3200 Shawnee Industrial Way Atlanta 256,700 1st Millennium Mat Company The Taylor Company NAI Brannen Goddard 13 2001 Marina Blvd East Bay/Oakland 223,984 1st Independent Electric Direct Deal Cornish & Carey Comm NKF 14 125 S Greenbush Rd Northern New Jersey 110,000 1st Nice-Pak Products, Inc. N/A Pyramid Brokerage Co of The Hudson 15 2400 E Francis St Inland Empire (California) 108,703 1st Globalinx Pet Newmark Grubb Knight Frank Colliers International 16 8845 Washington Blvd Sacramento 107,759 1st Wright Celebrations CBRE JLL 17 The Crossroads Collection - Bldg 5 Inland Empire (California) 102,878 1st Weber Distribution Cushman & Wakefield, Inc. Colliers International 18 201 W Carob St Los Angeles 100,280 1st Great Central Transport, Inc. Lee & Associates Colliers International 19 Lanark Distribution Center - Building 1* San Antonio 97,200 1st Chalk Mountain Services of Texas LLC N/A Stream Realty Partners-Central Texa 20 Romulus Business Center - Phase I Detroit 94,470 1st Excel Logistics N/A Signature Associates 21 Oakley Commerce Center Cincinnati 90,637 1st Group Sales N/A Cincinnati Commercial REALTORS 22 Main Manufacturing Tampa/St Petersburg 90,000 1st Excellence Industries Andretta Properties Resource Realty Group Inc. 23 6100 N Baker Rd Milwaukee 86,750 1st Milwaukee Center for Independence Siegel-Gallagher NAI MLG Commercial 24 3080 Airway Ave Orange County (California) 78,738 1st Fisker Automotive Voit Real Estate Services Lincoln Property Company 25 235 Jimmy Deloach Pky* Savannah 75,100 1st Damco N/A Duke Realty Corporation 26 Beauty Maid Mills Charlotte 73,940 1st Holland Distribution Direct Deal Holland Realty & Mortgage Corp. 27 14650 Miller Ave Inland Empire (California) 72,650 1st American Bolt & Screw Voit Real Estate Services Voit Real Estate Services 28 16 Sunset Way Las Vegas 72,121 1st Golf Outlets USA N/A MDL Group 29 Commerce Farms IV* Nashville 71,250 1st Communications Test Design, Inc. N/A Cassidy Turley 30 Internationale Centre* Chicago 71,246 1st Trudeau Corporation Taurus Realty Partners Prologis 31 993 Belleville Tpke Northern New Jersey 69,000 1st MGR Resources Cassidy Turley Cushman & Wakefield of New Jersey, 32 Cranbury Business Park - Bldg 8 Northern New Jersey 68,435 1st CIL Forwarding Cassidy Turley CBRE 33 10800 NW 106 St South Florida 67,997 1st TVH Parts Co CBRE Flagler Real Estate Services, LLC 34 2501-2545 NW 72nd Ave South Florida 66,829 1st Bonus Tech, Inc. Vivo Real Estate Group, Inc. CBRE 35 11 Edwards Dr Philadelphia 66,598 1st Modular Steel Direct Deal Berwick Industrial Development Asso 36 323 Mason Rd Nashville 66,493 1st Nissan Trading N/A Cassidy Turley 37 3201 Scott Blvd South Bay/San Jose 66,106 1st MIPS Technologies, Inc. Cornish & Carey Commercial NKF Direct Deal 38 6600 Jimmy Carter Blvd Atlanta 65,605 1st Brothers Global Inc. N/A Avison Young 39 411-433 Dixon Landing Rd* South Bay/San Jose 65,010 1st CETECOM, Inc. Colliers International Cassidy Turley 40 Prologis Park North - Bldg 8 Las Vegas 53,583 1st Aura XM Colliers International CBRE Source: CoStar Property * Renewal 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 29

NATIONAL FIRST QUARTER 2014 National Industrial Market SALES ACTIVITY The Optimist Sales Index Average of Two Highest Price/SF's and Two Lowest Cap Rates From Each Region 8.6% Cap Rate Price/SF $200 8.4% $180 Cap Rate Percentage 8.2% 8.0% 7.8% 7.6% 7.4% 7.2% 7.0% 6.8% $160 $140 $120 $100 $80 $60 $40 Dollars/SF 6.6% $20 6.4% 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2013 2q 2013 3q 2013 4q $0 Source: CoStar COMPS Sales Volume & Price Sales Analysis by Building Size Based on Industrial Building Sales of 15,000 SF and Larger Based on Industrial Bldg Sales From Jan. 2013 - Dec. 2013 Sales Volume Price/SF Bldg Size # RBA $ Volume Price/SF Cap Rate $9,000 $80 $8,000 $70 < 25,000 SF 5,223 63,110,252 $ 5,825,157,431 $ 92.30 8.05% Millions of Sales Volume Dollars $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $60 $50 $40 $30 $20 Price/SF 25K-99K SF 2,613 124,492,301 $ 7,647,182,709 $ 61.43 8.40% 100K-249K SF 686 102,999,651 $ 5,254,558,606 $ 51.02 7.91% $1,000 $10 $0 2010 1q 2010 3q 2011 1q 2011 3q 2012 1q 2012 3q 2013 1q 2013 3q $0 >250K SF 316 155,695,608 $ 8,115,458,224 $ 52.12 7.08% Source: CoStar COMPS Source: CoStar COMPS Historical Price/SF Average Based on Industrial Building Sales of 15,000 SF and Larger Historical Cap Rate Average Based on Industrial Building Sales of 15,000 SF and Larger $80 10.0% Dollars per SF $70 $60 $50 $40 $30 $20 $10 Cap Rate Percentage 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% $0 2010 1q 2010 3q 2011 1q 2011 3q 2012 1q 2012 3q 2013 1q 2013 3q 0.0% 2010 1q 2010 3q 2011 1q 2011 3q 2012 1q 2012 3q 2013 1q 2013 3q Source: CoStar COMPS Source: CoStar COMPS 30 THE COSTAR INDUSTRIAL REPORT 2014 COSTAR GROUP, INC.

National Industrial Market SALES ACTIVITY FIRST QUARTER 2014 NATIONAL 2014 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 31