The CoStar Industrial Report

The CoStar Industrial Report T H I R D Q U A R T E R 2 0 1 1 Westchester County Industrial Market

Westchester County Industrial Market THIRD QUARTER 2011 WESTCHESTER COUNTY Table of Contents Table of Contents.................................................................... A Methodology........................................................................ B Terms & Definitions.................................................................. C Market Highlights & Overview......................................................... 1 CoStar Markets...................................................................... 3 Inventory & Development Analysis Figures at a Glance................................................................... 6 Figures at a Glance by Building Type & Market Historical Figures at a Glance Leasing Activity Analysis Select Top Lease Transactions Sales Activity Analysis............................................................... 10 Sales Activity Analysis Select Top Sales Transactions Select Same Building Sales Select Land Sales Analysis of Individual CoStar Markets.................................................. 13 East I-287 Corridor Market North Market Northeast Market Northwest Market Southeast Market Southwest Market West I-287 Corridor Market White Plains CBD Market 2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT A

WESTCHESTER COUNTY THIRD QUARTER 2011 Westchester County 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 71.7 billion square feet of coverage in 3 million properties. All rental rates reported in the CoStar Industrial Report are calculated using the quoted rental rate for each property. The quoted rental rate is exclusive of the expense pass through associated with the rent. 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 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 USA 20005 (800) 204-5960 www.costar.com NASDAQ: CSGP B THE COSTAR INDUSTRIAL REPORT 2011 COSTAR GROUP, INC.

Westchester County Industrial Market THIRD QUARTER 2011 WESTCHESTER COUNTY 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) 2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT C

WESTCHESTER COUNTY THIRD QUARTER 2011 Westchester County 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 2011 COSTAR GROUP, INC.

Westchester County Industrial Market OVERVIEW THIRD QUARTER 2011 WESTCHESTER COUNTY Westchester County s Vacancy Increases to 5.8% Net Absorption Negative (62,399) SF in the Quarter The Westchester County Industrial market ended the third quarter 2011 with a vacancy rate of 5.8%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (62,399) square feet in the third quarter. Vacant sublease space increased in the quarter, ending the quarter at 92,458 square feet. Rental rates ended the third quarter at $10.74, an increase over the previous quarter. There were no properties under construction at the end of the quarter. Absorption Net absorption for the overall Westchester County Industrial market was negative (62,399) square feet in the third quarter 2011. That compares to negative (50,785) square feet in the second quarter 2011, positive 133,298 square feet in the first quarter 2011, and positive 21,571 square feet in the fourth quarter. Tenants moving out of large blocks of space in 2011 include: Guski Trucking Co., Inc. moving out of (33,000) square feet at 1120 Saw Mill River Rd, Elite Cars moving out of (22,000) square feet at 11 Hartford Ave, and Bel-Oro International, Inc. moving out of (15,000) square feet at 115 S Macquesten Pky. Tenants moving into large blocks of space in 2011 include: Kimber Manufacturing Inc moving into 96,000 square feet at 1120 Saw Mill River Rd. The Flex building market recorded net absorption of positive 4,681 square feet in the third quarter 2011, compared to negative (162,799) square feet in the second quarter 2011, positive 124,095 in the first quarter 2011, and negative (6,551) in the fourth quarter. The Warehouse building market recorded net absorption of negative (67,080) square feet in the third quarter 2011 compared to positive 112,014 square feet in the second quarter 2011, positive 9,203 in the first quarter 2011, and positive 28,122 in the fourth quarter. Vacancy The Industrial vacancy rate in the Westchester County market area increased to 5.8% at the end of the third quarter 2011. The vacancy rate was 5.7% at the end of the second quarter 2011, 5.5% at the end of the first quarter 2011, and 5.9% at the end of the fourth quarter. Flex projects reported a vacancy rate of 13.8% at the end of the third quarter 2011, 13.8% at the end of the second quarter 2011, 11.5% at the end of the first quarter 2011, and 13.3% at the end of the fourth quarter. Warehouse projects reported a vacancy rate of 3.9% at the end of the third quarter 2011, 3.6% at the end of second quarter 2011, 4.0% at the end of the first quarter 2011, and 4.1% at the end of the fourth quarter. Largest Lease Signings The largest lease signings occurring in 2011 included: the 96,000-square-foot lease signed by Kimber Manufacturing Inc at 1120 Saw Mill River Rd in the Southwest market; the 36,688- square-foot deal signed by Food Bank for Westchester at 200 Clearbrook Rd in the West I-287 Corridor market. Sublease Vacancy The amount of vacant sublease space in the Westchester County market increased to 92,458 square feet by the end of the third quarter 2011, from 50,932 square feet at the end of the Vacancy Rates by Building Type 1999-2011 16% Flex Warehouse Total Market 14% 12% Vacancy Rate 10% 8% 6% 4% 2% 0% 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2011 2011 2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 1

WESTCHESTER COUNTY THIRD QUARTER 2011 Westchester County Industrial Market OVERVIEW second quarter 2011. There was 46,000 square feet vacant at the end of the first quarter 2011 and 34,754 square feet at the end of the fourth quarter. Westchester County s Flex projects reported vacant sublease space of 28,526 square feet at the end of third quarter 2011, up from the 0 square feet reported at the end of the second quarter 2011. There were 0 square feet of sublease space vacant at the end of the first quarter 2011, and 2,754 square feet at the end of the fourth quarter. Warehouse projects reported increased vacant sublease space from the second quarter 2011 to the third quarter 2011. Sublease vacancy went from 50,932 square feet to 63,932 square feet during that time. There was 46,000 square feet at the end of the first quarter 2011, and 32,000 square feet at the end of the fourth quarter. Rental Rates The average quoted asking rental rate for available Industrial space was $10.74 per square foot per year at the end of the third quarter 2011 in the Westchester County market area. This represented a 6.3% increase in quoted rental rates from the end of the second quarter 2011, when rents were reported at $10.10 per square foot. The average quoted rate within the Flex sector was $10.81 per square foot at the end of the third quarter 2011, while Warehouse rates stood at $10.72. At the end of the second quarter 2011, Flex rates were $10.21 per square foot, and Warehouse rates were $17. Deliveries and Construction During the third quarter 2011, no new space was completed in the Westchester County market area. This compares to 0 buildings totaling 0 square feet that were completed in the second quarter 2011, nothing completed in the first quarter 2011, and nothing completed in the fourth quarter. There were 0 square feet of Industrial space under construction at the end of the third quarter 2011. U.S. Vacancy Comparison Past 9 Quarters Inventory Total Industrial inventory in the Westchester County market area amounted to 34,734,446 square feet in 1,313 buildings as of the end of the third quarter 2011. The Flex sector consisted of 6,910,137 square feet in 141 projects. The Warehouse sector consisted of 27,824,309 square feet in 1,172 buildings. Within the Industrial market there were 143 owner-occupied buildings accounting for 6,286,898 square feet of Industrial space. Sales Activity Tallying industrial building sales of 15,000 square feet or larger, Westchester County industrial sales figures fell during the second quarter 2011 in terms of dollar volume compared to the first quarter of 2011. In the second quarter, two industrial transactions closed with a total volume of $2,750,000. The two buildings totaled 33,480 square feet and the average price per square foot equated to $82.14 per square foot. That compares to three transactions totaling $7,887,712 in the first quarter. The total square footage was 132,685 for an average price per square foot of $59.45. Total year-to-date industrial building sales activity in 2011 is down compared to the previous year. In the first six months of 2011, the market saw five industrial sales transactions with a total volume of $10,637,712. The price per square foot has averaged $64.02 this year. In the first six months of, the market posted four transactions with a total volume of $18,725,000. The price per square foot averaged $59.44. Cap rates have been unchanged in 2011, averaging 9.60%, compared to the first six months of last year when they averaged 9.60%. One of the largest transactions that has occurred within the last four quarters in the Westchester County market is the sale of 36 Arlo Lane Lillian in Cortlandt Manor. This 12,125-squarefoot industrial building sold for $2,200,000, or $181.44 per square foot. The property sold on 2/17/2011. Reports compiled by: Danyelle Levi CoStar Research Manager and Research Associates.. 12.0% Westchester County United States 1% Vacancy Rate 8.0% 6.0% 4.0% 2.0% % 4q 2q 4q 2011 2011 2q 2011 Source: CoStar Property 2 THE COSTAR INDUSTRIAL REPORT 2011 COSTAR GROUP, INC.

Westchester County Industrial Market MARKETS THIRD QUARTER 2011 WESTCHESTER COUNTY CoStar Markets In analyzing metropolitan areas in the U.S., CoStar has developed geographic designations to help group properties together, called Regions, Markets and Submarkets. Regions are the equivalent of metropolitan areas, or areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Regions are then divided into Markets, which are core areas within a metropolitan area that are known to be competitive with each other in terms of attracting and keeping tenants. Markets are then further subdivided into smaller units called Submarkets, which serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted competitive set, or peer group. Markets East I-287 Corridor North Northeast Northwest Southeast Southwest West I-287 Corridor White Plains CBD 2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 3

WESTCHESTER COUNTY THIRD QUARTER 2011 Westchester County Industrial Market INVENTORY & DEVELOPMENT Historical Deliveries 1982-2011 0.6 Deliveries Average Delivered SF 0.5 0.4 0.5 0.4 0.5 0.4 Millions of SF 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 1982 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 2011 * Future deliveries based on current under construction buildings. Construction Activity Markets Ranked by Under Construction RBA Market Under Construction Inventory Average Bldg Size # Bldgs Total RBA Preleased SF Preleased % All Existing U/C White Plains CBD 0 0 0 % 21,171 0 East I-287 Corridor 0 0 0 % 21,505 0 Northeast 0 0 0 % 35,413 0 North 0 0 0 % 32,044 0 Northwest 0 0 0 % 28,570 0 Southeast 0 0 0 % 18,990 0 Southwest 0 0 0 % 30,449 0 West I-287 Corridor 0 0 0 % 38,629 0 Totals 0 0 0 % 26,454 0 Recent Deliveries Leased & Un-Leased SF in Deliveries Since 2007 0.3 Leased Un-Leased 0.2 Millions of SF 0.2 0.1 0.1 2007 2008 2011 4 THE COSTAR INDUSTRIAL REPORT 2011 COSTAR GROUP, INC.

Westchester County Industrial Market INVENTORY & DEVELOPMENT THIRD QUARTER 2011 WESTCHESTER COUNTY Historical Construction Starts & Deliveries Square Footage Per Quarter Starting and Completing Construction 0.3 0.3 Construction Starts Deliveries 0.3 0.2 Millions of SF 0.2 0.1 0.1 0.1 0.1 0.1 0.1 2008 2008 2q 2008 2008 4q 2q 4q 2q 4q 2011 2011 2q 2011 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 0 0 0 % $0 0 0 50,000 SF - 99,999 SF 0 0 0 % $0 0 0 100,000 SF - 249,999 SF 0 0 0 % $0 0 0 250,000 SF - 499,999 SF 0 0 0 % $0 0 0 >= 500,000 SF 0 0 0 % $0 0 0 Recent Development by Tenancy Existing Inventory Comparison Based on RBA Developed for Single & Multi-Tenant Use Based on Total RBA No 2011 Deliveries No Properties Under Construction By Building Type By Tenancy Type 20% 43% 80% 57% Flex Warehouse Multi Single 2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 5

WESTCHESTER COUNTY THIRD QUARTER 2011 Westchester County Industrial Market FIGURES AT A GLANCE Flex Market Statistics Third Quarter 2011 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates East I-287 Corridor 21 835,510 24,750 24,750 3.0% 4,600 0 0 $11.43 North 14 440,300 0 0 % 8,250 0 0 $20.39 Northeast 3 161,979 61,300 61,300 37.8% 11,200 0 0 $13.38 Northwest 8 457,263 13,050 13,050 2.9% (2,167) 0 0 $16.51 Southeast 20 344,177 132,936 132,936 38.6% (7,139) 0 0 $11.15 Southwest 16 974,522 318,869 318,869 32.7% (6,282) 0 0 $4.09 West I-287 Corridor 56 3,642,886 371,762 400,288 11.0% (42,485) 0 0 $17.79 White Plains CBD 3 53,500 0 0 % 0 0 0 $0 Totals 141 6,910,137 922,667 951,193 13.8% (34,023) 0 0 $10.81 Warehouse Market Statistics Third Quarter 2011 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates East I-287 Corridor 114 2,067,719 93,821 93,821 4.5% 137,917 0 0 $11.64 North 48 1,546,451 3,550 3,550 0.2% (250) 0 0 $11.68 Northeast 4 85,912 0 0 % 0 0 0 $0 Northwest 83 2,142,595 61,579 61,579 2.9% (13,129) 0 0 $12.05 Southeast 454 8,656,955 339,388 352,388 4.1% (50,949) 0 0 $10.96 Southwest 289 8,312,369 255,514 269,514 3.2% (22,244) 0 0 $9.08 West I-287 Corridor 153 4,430,672 208,100 245,032 5.5% 2,203 0 0 $10.92 White Plains CBD 27 581,636 48,365 48,365 8.3% 589 0 0 $10.69 Totals 1,172 27,824,309 1,010,317 1,074,249 3.9% 54,137 0 0 $10.72 Total Industrial Market Statistics Third Quarter 2011 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates East I-287 Corridor 135 2,903,229 118,571 118,571 4.1% 142,517 0 0 $11.59 North 62 1,986,751 3,550 3,550 0.2% 8,000 0 0 $13.69 Northeast 7 247,891 61,300 61,300 24.7% 11,200 0 0 $13.38 Northwest 91 2,599,858 74,629 74,629 2.9% (15,296) 0 0 $12.82 Southeast 474 9,001,132 472,324 485,324 5.4% (58,088) 0 0 $10.99 Southwest 305 9,286,891 574,383 588,383 6.3% (28,526) 0 0 $7.67 West I-287 Corridor 209 8,073,558 579,862 645,320 8.0% (40,282) 0 0 $12.39 White Plains CBD 30 635,136 48,365 48,365 7.6% 589 0 0 $10.69 Totals 1,313 34,734,446 1,932,984 2,025,442 5.8% 20,114 0 0 $10.74 6 THE COSTAR INDUSTRIAL REPORT 2011 COSTAR GROUP, INC.

Westchester County Industrial Market FIGURES AT A GLANCE THIRD QUARTER 2011 WESTCHESTER COUNTY Flex Market Statistics Third Quarter 2011 Existing Inventory Vacancy Net Deliveries UC Inventory Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates 2011 141 6,910,137 922,667 951,193 13.8% 4,681 0 0 0 0 $10.81 2011 2q 141 6,910,137 955,874 955,874 13.8% (162,799) 0 0 0 0 $10.21 2011 141 6,910,137 793,075 793,075 11.5% 124,095 0 0 0 0 $10.15 4q 141 6,910,137 914,416 917,170 13.3% (6,551) 0 0 0 0 $10.25 141 6,910,137 894,865 910,619 13.2% (24,189) 0 0 0 0 $10.37 2q 141 6,910,137 869,251 886,430 12.8% 61,554 0 0 0 0 $13.25 141 6,910,137 930,805 947,984 13.7% (21,376) 0 0 0 0 $13.31 141 6,910,137 896,612 926,608 13.4% (53,035) 2 229,644 0 0 $14.99 2008 139 6,680,493 643,929 643,929 9.6% (757) 2 175,178 2 229,644 $16.58 2007 137 6,505,315 432,294 467,994 7.2% 93,438 0 0 1 130,877 $17.89 2006 137 6,505,315 484,991 561,432 8.6% 53,181 0 0 0 0 $17.72 2005 138 6,525,315 541,908 634,613 9.7% (8,470) 0 0 0 0 $18.76 2004 138 6,525,315 490,945 626,143 9.6% 56,575 0 0 0 0 $18.03 2003 138 6,525,315 572,494 682,718 10.5% 128,678 0 0 0 0 $17.05 2002 138 6,525,315 697,681 811,396 12.4% (219,213) 1 33,000 0 0 $13.35 2001 137 6,492,315 491,730 559,183 8.6% (159,187) 0 0 1 33,000 $14.31 Quoted Warehouse Market Statistics Third Quarter 2011 Existing Inventory Vacancy Net Deliveries UC Inventory Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates 2011 1,172 27,824,309 1,010,317 1,074,249 3.9% (67,080) 0 0 0 0 $10.72 2011 2q 1,172 27,824,309 956,237 1,007,169 3.6% 112,014 0 0 0 0 $17 2011 1,172 27,824,309 1,073,183 1,119,183 4.0% 9,203 0 0 0 0 $16 4q 1,172 27,824,309 1,096,386 1,128,386 4.1% 28,122 0 0 0 0 $10.34 1,172 27,824,309 1,124,508 1,156,508 4.2% (69,879) 0 0 0 0 $10.65 2q 1,172 27,824,309 1,054,629 1,086,629 3.9% (30,308) 0 0 0 0 $10.46 1,172 27,824,309 1,024,321 1,056,321 3.8% (45,885) 0 0 0 0 $10.32 1,172 27,824,309 978,436 1,010,436 3.6% (142,885) 0 0 0 0 $10.44 2008 1,173 27,974,309 1,013,301 1,017,551 3.6% 349,770 3 26,506 0 0 $10.65 2007 1,170 27,947,803 1,335,815 1,340,815 4.8% 326,103 1 6,531 1 9,006 $10.46 2006 1,169 27,941,272 1,656,787 1,660,387 5.9% 44,754 1 10,000 1 6,531 $9.92 2005 1,169 27,991,272 1,755,141 1,755,141 6.3% (691,916) 3 27,119 0 0 $9.21 2004 1,166 27,964,153 1,036,106 1,036,106 3.7% 735,367 0 0 3 27,119 $9.21 2003 1,166 27,964,153 1,321,253 1,771,473 6.3% 324,696 0 0 0 0 $9.37 2002 1,166 27,964,153 1,617,899 2,096,169 7.5% 466,572 1 20,000 0 0 $9.46 2001 1,165 27,944,153 2,046,741 2,542,741 9.1% (1,100,954) 0 0 1 20,000 $9.02 Quoted Total Industrial Market Statistics Third Quarter 2011 Existing Inventory Vacancy Net Deliveries UC Inventory Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates 2011 1,313 34,734,446 1,932,984 2,025,442 5.8% (62,399) 0 0 0 0 $10.74 2011 2q 1,313 34,734,446 1,912,111 1,963,043 5.7% (50,785) 0 0 0 0 $10.10 2011 1,313 34,734,446 1,866,258 1,912,258 5.5% 133,298 0 0 0 0 $18 4q 1,313 34,734,446 2,010,802 2,045,556 5.9% 21,571 0 0 0 0 $10.32 1,313 34,734,446 2,019,373 2,067,127 6.0% (94,068) 0 0 0 0 $10.59 2q 1,313 34,734,446 1,923,880 1,973,059 5.7% 31,246 0 0 0 0 $10.97 1,313 34,734,446 1,955,126 2,004,305 5.8% (67,261) 0 0 0 0 $10.85 1,313 34,734,446 1,875,048 1,937,044 5.6% (195,920) 2 229,644 0 0 $11.18 2008 1,312 34,654,802 1,657,230 1,661,480 4.8% 349,013 5 201,684 2 229,644 $12.41 2007 1,307 34,453,118 1,768,109 1,808,809 5.3% 419,541 1 6,531 2 139,883 $12.71 2006 1,306 34,446,587 2,141,778 2,221,819 6.5% 97,935 1 10,000 1 6,531 $13.00 2005 1,307 34,516,587 2,297,049 2,389,754 6.9% (700,386) 3 27,119 0 0 $12.96 2004 1,304 34,489,468 1,527,051 1,662,249 4.8% 791,942 0 0 3 27,119 $12.64 2003 1,304 34,489,468 1,893,747 2,454,191 7.1% 453,374 0 0 0 0 $12.49 2002 1,304 34,489,468 2,315,580 2,907,565 8.4% 247,359 2 53,000 0 0 $10.35 2001 1,302 34,436,468 2,538,471 3,101,924 9.0% (1,260,141) 0 0 2 53,000 $9.94 Quoted 2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 7

WESTCHESTER COUNTY THIRD QUARTER 2011 Westchester County Industrial Market LEASING ACTIVITY Historical Rental Rates Based on Quoted Rental Rates $18.00 Flex Warehouse Total Market $16.00 $14.00 Dollars/SF/Year $12.00 $10 $8.00 $6.00 $4.00 $2.00 $0 4q 2q 4q 2011 2011 2q 2011 Vacancy by Available Space Type Vacancy by Building Type Percent of All Vacant Space in Direct vs. Sublet Percent of All Vacant Space by Building Type Westchester County United States Westchester County United States 5% 3% 53% 15% 95% 97% 47% 85% Direct Sublet Direct Sublet Flex Warehouse Flex Warehouse U.S. Rental Rate Comparison Based on Average Quoted Rental Rates Future Space Available Space Scheduled to be Available for Occupancy* $14.00 Westchester County United States $12.00 Dollars/SF/Year $10 $8.00 $6.00 $4.00 Millions $2.00 $0 4q 2q 4q 2011 2011 2q 2011 2011 4q 2012 2012 2q 2012 2012 4q 2013 * Includes Under Construction Space 8 THE COSTAR INDUSTRIAL REPORT 2011 COSTAR GROUP, INC.

Westchester County Industrial Market LEASING ACTIVITY THIRD QUARTER 2011 WESTCHESTER COUNTY Select Top Industrial Leases Based on Leased Square Footage For Deals Signed in 2011 Building Submarket SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company 1 1120 Saw Mill River Rd Southwest 96,000 2nd Kimber Manufacturing Inc NAI Friedland Anson Properties LTD 2 Land-Executive Boulevard 700 West I-287 Corridor 55,000 1st N/A N/A Anson Properties LTD 3 200 Clearbrook Rd West I-287 Corridor 36,688 3rd Food Bank for Westchester Rakow Commercial Realty Mack-Cali Realty Corporation 4 444 Saw Mill River Rd West I-287 Corridor 18,500 1st Captain Lawrence Brewing Co CB Richard Ellis Diamond Properties 5 135 Lafayette Ave East I-287 Corridor 11,800 1st P.M Amusements Inc ERA Insite Realty Services Re/Max Ace Realty 6 1 Odell Plz Southwest 11,770 2nd N/A N/A Mack-Cali Realty Corporation 7 35 Winthrop Ave Southeast 11,300 2nd U Store It N/A New York Commercial Realty Group 8 2 E Sandford Blvd Southeast 10,000 2nd Family Dollar Direct Deal Al Korman 9 404 Irvington St Northwest 8,000 1st Party Supply Direct Deal Duke Realty 10 545 Franklin Ave Southeast 6,860 3rd N/A N/A Simone Development Company 11 35 Colonial Pl Southeast 6,200 3rd N/A N/A Simone Development Company 12 400 Executive Blvd West I-287 Corridor 6,125 1st N/A Direct Deal Mack-Cali Realty Corporation 13 106 Purdy Ave East I-287 Corridor 6,000 1st N/A N/A Anson Properties LTD 14 605 N Macquesten Pky Southeast 5,700 3rd N/A Direct Deal Rakow Commercial Realty 15 Separate Garage Southwest 5,000 1st Brown Supply NAI Friedland RJ Rose Realty LLC 16 Separate Garage Southwest 5,000 1st N/A NAI Friedland NAI Friedland 17 42 South St Southeast 4,500 3rd N/A N/A Marciano Dominick 18 444 Saw Mill River Rd West I-287 Corridor 4,498 2nd Air-Mac Distribution Direct Deal Diamond Properties 19 99 Fulton St West I-287 Corridor 4,250 1st Kanter s Carpet Service, Inc Direct Deal NAI Friedland 20 59 S Terrace Ave Southeast 4,000 1st Franklin Esertin N/A Franklin Esertin 21 404 Irvington St Northwest 4,000 1st Hillside Food Outreach Direct Deal Duke Realty 22 421 Waverly Ave Southeast 3,825 1st N/A N/A Rakow Commercial Realty 23 50 Broadway West I-287 Corridor 3,252 3rd N/A N/A Diamond Properties 24 128 Radio Circle Dr North 3,250 1st N/A N/A Select Properties Ltd 25 22 Broad St East I-287 Corridor 3,200 3rd Naco Seafood Direct Deal Roosevelt Holdings 26 615 Center Ave Southeast 3,000 2nd Atlantic Hops Brewing Co. Direct Deal Nu-Way A/C & Heating 27 2 Westchester Plz West I-287 Corridor 2,998 2nd N/A N/A Mack-Cali Realty Corporation 28 The Atrium at Rae Park Northwest 2,991 1st LAZ Parking Direct Deal Esposito Builders 29 444 Saw Mill River Rd West I-287 Corridor 2,644 1st Blueline Tactical Direct Deal Diamond Properties 30 6 Executive Plz Southwest 2,555 3rd N/A N/A Mack-Cali Realty Corporation 31 Glasss Doctor Southeast 2,500 2nd Glass Doctor Direct Deal Ardy Bruno 32 5 Cross St W West I-287 Corridor 2,500 3rd N/A Direct Deal Dynamic 141 LLC 33 400 Executive Blvd West I-287 Corridor 2,400 1st N/A Direct Deal Mack-Cali Realty Corporation 34 175 Clearbrook Rd West I-287 Corridor 2,150 2nd N/A N/A Mack-Cali Realty Corporation 35 200 Saw Mill River Rd West I-287 Corridor 2,106 2nd N/A N/A Mack-Cali Realty Corporation 36 128 Radio Circle Dr North 2,000 2nd N/A Royal Properties, Inc. MRE Management 37 255 Lake Ave Southwest 1,800 2nd N/A N/A Ecco Development LLC 38 10 Saint Charles St West I-287 Corridor 1,733 1st Pertona Brothers/Core Construction Duke Realty Duke Realty 39 The Atrium at Rae Park Northwest 1,573 3rd Pilates on Hudson Direct Deal Benson Commercial Realty Inc. 40 101 Castleton St West I-287 Corridor 1,500 2nd N/A Rakow Commercial Realty VJ Realtors * Renewal 2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 9

WESTCHESTER COUNTY THIRD QUARTER 2011 Westchester County Industrial Market SALES ACTIVITY The Optimist Sales Index Average of Two Highest Price/SF's and Two Lowest Cap Rates Per Quarter 10.1% Cap Rate Price/SF $160 1% $140 Cap Rate Percentage 9.9% 9.8% 9.7% 9.6% $120 $100 $80 $60 $40 Dollars/SF 9.5% $20 9.4% 2008 2008 4q 2q 4q 2q 4q 2011 2011 2q $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 July - June 2011 Sales Volume Price/SF Bldg Size # RBA $ Volume Price/SF Cap Rate $25 $140 Millions of Sales Volume Dollars $20 $15 $10 $5 $120 $100 $80 $60 $40 $20 Price/SF < 25,000 SF 16 177,923 $ 19,699,895 $ 110.72-25K-99K SF 10 411,325 $ 23,892,712 $ 58.09 9.60% 100K-249K SF 2 252,089 $ 15,600,000 $ 61.88 - $0 2008 2008 2011 $0 >250K SF - - - $ - - Source: CoStar COMPS Source: CoStar COMPS U.S. Price/SF Comparison Based on Industrial Building Sales of 15,000 SF and Larger U.S. Cap Rate Comparison Based on Industrial Building Sales of 15,000 SF and Larger $140 Westchester County US 1% Westchester County US Dollars per SF $120 $100 $80 $60 $40 $20 Cap Rate Percentage 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% $0 2008 2008 2q 2008 2008 4q 2q 4q 2q 4q 2011 2011 2q % 2008 2008 2q 2008 2008 4q 2q 4q 2q 4q 2011 2011 2q Source: CoStar COMPS Source: CoStar COMPS 10 THE COSTAR INDUSTRIAL REPORT 2011 COSTAR GROUP, INC.

Westchester County Industrial Market SALES ACTIVITY THIRD QUARTER 2011 WESTCHESTER COUNTY 2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 11

WESTCHESTER COUNTY THIRD QUARTER 2011 Westchester County Industrial Market SALES ACTIVITY Select Land Sales Based on Industrial Zoned Land Sales Occurring From July - Sept. 2011 2 Bay View Rd, Cortlandt Manor Fulton Ave S, Mount Vernon Sale Price: $4,250,000 Sale Price: $1,200,000 Acres: 7.00 Acres: 0.24 Price/SF: $13.94 Price/SF: $113.52 Closing Date: 11/04/ Closing Date: 08/19/2011 Zoning: IT Zoning: Unknown Intended Use: Recycling Center Intended Use: Hold for Development Buyer: City Carting & Recycling Buyer: CVS Seller: CK Industries Corporation Seller: GSA Mt Vernon Associates LLC Source: CoStar COMPS 12 THE COSTAR INDUSTRIAL REPORT 2011 COSTAR GROUP, INC.

Westchester County Industrial Market E A S T I - 2 8 7 C O R R I D O R M A R K E T MARKET HIGHLIGHTS - FLEX & WAREHOUSE THIRD QUARTER 2011 WESTCHESTER COUNTY Deliveries, Absorption & Vacancy 0.200 Delivered SF Absorption SF Vacancy 12.0% 0.150 1% 0.100 50 00 (50) (0.100) 8.0% 6.0% 4.0% 2.0% Percent Vacant (0.150) 2008 2008 2q 2008 2008 4q 2q 4q 2q 4q 2011 2011 2q 2011 % Vacant Space Quoted Rental Rates 0.35 Direct SF Sublet SF $11.90 0.30 $11.80 0.25 0.20 0.15 0.10 5 Dollars/SF/Year $11.70 $11.60 $11.50 $11.40 $11.30 0 2q 4q 2011 2011 2q 2011 $11.20 2q 4q 2011 2011 2q 2011 Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2011 135 2,903,229 118,571 4.1% (7,848) 0 0 0 0 $11.59 2011 2q 135 2,903,229 110,723 3.8% (11,387) 0 0 0 0 $11.41 2011 135 2,903,229 99,336 3.4% 161,752 0 0 0 0 $11.51 4q 135 2,903,229 261,088 9.0% 11,510 0 0 0 0 $11.48 135 2,903,229 272,598 9.4% (11,000) 0 0 0 0 $11.63 2q 135 2,903,229 261,598 9.0% 40,025 0 0 0 0 $11.58 135 2,903,229 301,623 10.4% (44,124) 0 0 0 0 $11.79 4q 135 2,903,229 257,499 8.9% 4,865 0 0 0 0 $12.02 135 2,903,229 262,364 9.0% (49,140) 0 0 0 0 $12.42 2q 135 2,903,229 213,224 7.3% (14,520) 0 0 0 0 $12.63 135 2,903,229 198,704 6.8% (16,677) 0 0 0 0 $13.00 2008 4q 135 2,903,229 182,027 6.3% (3,768) 0 0 0 0 $12.83 2008 135 2,903,229 178,259 6.1% (117,389) 0 0 0 0 $12.80 2008 2q 135 2,903,229 60,870 2.1% (47,070) 0 0 0 0 $13.91 2008 135 2,903,229 13,800 0.5% 4,100 0 0 0 0 $11.91 2007 4q 135 2,903,229 17,900 0.6% 9,200 0 0 0 0 $11.02 2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 13

WESTCHESTER COUNTY THIRD QUARTER 2011 Westchester County Industrial Market N O R T H M A R K E T MARKET HIGHLIGHTS - FLEX & WAREHOUSE Deliveries, Absorption & Vacancy 0.350 0.300 0.250 0.200 0.150 0.100 50 00 (50) Delivered SF Absorption SF Vacancy 2008 2008 2q 2008 2008 4q 2q 4q 2q 4q 2011 2011 2q 2011 2% 18.0% 16.0% 14.0% 12.0% 1% 8.0% 6.0% 4.0% 2.0% % Percent Vacant Vacant Space Quoted Rental Rates 4 Direct SF Sublet SF $14.50 3 $14.00 3 2 2 1 1 Dollars/SF/Year $13.50 $13.00 $12.50 $12.00 $11.50 0 2q 4q 2011 2011 2q 2011 $11.00 2q 4q 2011 2011 2q 2011 Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2011 62 1,986,751 3,550 0.2% 27,150 0 0 0 0 $13.69 2011 2q 62 1,986,751 30,700 1.5% (22,500) 0 0 0 0 $14.00 2011 62 1,986,751 8,200 0.4% 3,350 0 0 0 0 $12.30 4q 62 1,986,751 11,550 0.6% 1,550 0 0 0 0 $12.84 62 1,986,751 13,100 0.7% 4,750 0 0 0 0 $13.63 2q 62 1,986,751 17,850 0.9% 4,685 0 0 0 0 $13.63 62 1,986,751 22,535 1.1% 1,850 0 0 0 0 $13.63 4q 62 1,986,751 24,385 1.2% 3,175 0 0 0 0 $13.82 62 1,986,751 27,560 1.4% (2,700) 0 0 0 0 $14.58 2q 62 1,986,751 24,860 1.3% 8,550 0 0 0 0 $14.88 62 1,986,751 33,410 1.7% 3,300 0 0 0 0 $15.16 2008 4q 62 1,986,751 36,710 1.8% 146,775 0 0 0 0 $14.91 2008 62 1,986,751 183,485 9.2% 26,550 0 0 0 0 $14.97 2008 2q 62 1,986,751 210,035 10.6% 158,176 0 0 0 0 $15.05 2008 62 1,986,751 368,211 18.5% 323,200 0 0 0 0 $14.25 2007 4q 62 1,986,751 691,411 34.8% 7,239 0 0 0 0 $13.20 14 THE COSTAR INDUSTRIAL REPORT 2011 COSTAR GROUP, INC.

Westchester County Industrial Market N O R T H E A S T M A R K E T MARKET HIGHLIGHTS - FLEX & WAREHOUSE THIRD QUARTER 2011 WESTCHESTER COUNTY Deliveries, Absorption & Vacancy 15 10 05 00 (05) (10) (15) (20) (25) (30) (35) Delivered SF Absorption SF Vacancy 2008 2008 2q 2008 2008 4q 2q 4q 2q 4q 2011 2011 2q 2011 35.0% 3% 25.0% 2% 15.0% 1% 5.0% % Percent Vacant Vacant Space Quoted Rental Rates 8 7 7 7 7 7 6 6 6 6 6 5 Direct SF Sublet SF 2q 4q 2011 2011 2q 2011 Dollars/SF/Year $14.00 $13.80 $13.60 $13.40 $13.20 $13.00 $12.80 $12.60 $12.40 $12.20 $12.00 $11.80 2q 4q 2011 2011 2q 2011 Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2011 7 247,891 61,300 24.7% 2,200 0 0 0 0 $13.38 2011 2q 7 247,891 63,500 25.6% 0 0 0 0 0 $13.72 2011 7 247,891 63,500 25.6% 9,000 0 0 0 0 $12.70 4q 7 247,891 72,500 29.2% 0 0 0 0 0 $12.70 7 247,891 72,500 29.2% 1,000 0 0 0 0 $12.70 2q 7 247,891 73,500 29.7% 0 0 0 0 0 $12.67 7 247,891 73,500 29.7% 0 0 0 0 0 $12.50 4q 7 247,891 73,500 29.7% (28,500) 0 0 0 0 $16.28 7 247,891 45,000 18.2% 0 0 0 0 0 $18.81 2q 7 247,891 45,000 18.2% 0 0 0 0 0 $18.81 7 247,891 45,000 18.2% 0 0 0 0 0 $20.35 2008 4q 7 247,891 45,000 18.2% 0 0 0 0 0 $22.00 2008 7 247,891 45,000 18.2% 0 0 0 0 0 $22.00 2008 2q 7 247,891 45,000 18.2% 0 0 0 0 0 $22.00 2008 7 247,891 45,000 18.2% 0 0 0 0 0 $0 2007 4q 7 247,891 45,000 18.2% 0 0 0 0 0 $22.13 2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 15

WESTCHESTER COUNTY THIRD QUARTER 2011 Westchester County Industrial Market N O R T H W E S T M A R K E T MARKET HIGHLIGHTS - FLEX & WAREHOUSE Deliveries, Absorption & Vacancy 60 50 40 30 20 10 00 (10) (20) (30) Delivered SF Absorption SF Vacancy 2008 2008 2q 2008 2008 4q 2q 4q 2q 4q 2011 2011 2q 2011 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% % Percent Vacant Vacant Space Quoted Rental Rates 0.12 Direct SF Sublet SF $13.00 0.10 $12.50 8 6 4 Dollars/SF/Year $12.00 $11.50 2 $11.00 0 2q 4q 2011 2011 2q 2011 $10.50 2q 4q 2011 2011 2q 2011 Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2011 91 2,599,858 74,629 2.9% 5,105 0 0 0 0 $12.82 2011 2q 91 2,599,858 79,734 3.1% (1,062) 0 0 0 0 $11.43 2011 91 2,599,858 78,672 3.0% (19,339) 0 0 0 0 $11.30 4q 91 2,599,858 59,333 2.3% 23,753 0 0 0 0 $12.67 91 2,599,858 83,086 3.2% 11,814 0 0 0 0 $12.33 2q 91 2,599,858 94,900 3.7% 1,400 0 0 0 0 $12.07 91 2,599,858 96,300 3.7% (10,218) 0 0 0 0 $12.10 4q 91 2,599,858 86,082 3.3% 2,546 0 0 0 0 $11.86 91 2,599,858 88,628 3.4% 52,789 0 0 0 0 $11.98 2q 91 2,599,858 141,417 5.4% (10,634) 0 0 0 0 $12.09 91 2,599,858 130,783 5.0% 1,285 0 0 0 0 $12.24 2008 4q 91 2,599,858 132,068 5.1% 38,488 2 53,301 0 0 $12.38 2008 89 2,546,557 117,255 4.6% 10,500 1 8,500 2 53,301 $12.29 2008 2q 88 2,538,057 119,255 4.7% 14,625 0 0 3 61,801 $12.93 2008 88 2,538,057 133,880 5.3% (20,602) 0 0 2 17,500 $12.50 2007 4q 88 2,538,057 113,278 4.5% 10,729 0 0 0 0 $12.08 16 THE COSTAR INDUSTRIAL REPORT 2011 COSTAR GROUP, INC.

Westchester County Industrial Market S O U T H E A S T M A R K E T MARKET HIGHLIGHTS - FLEX & WAREHOUSE THIRD QUARTER 2011 WESTCHESTER COUNTY Deliveries, Absorption & Vacancy 0.100 Delivered SF Absorption SF Vacancy 6.0% 50 5.0% 00 (50) 4.0% 3.0% 2.0% Percent Vacant (0.100) 1.0% (0.150) 2008 2008 2q 2008 2008 4q 2q 4q 2q 4q 2011 2011 2q 2011 % Vacant Space Quoted Rental Rates 0.60 Direct SF Sublet SF $11.40 $11.20 0.50 $11.00 0.40 0.30 0.20 0.10 Dollars/SF/Year $10.80 $10.60 $10.40 $10.20 $10 $9.80 0 2q 4q 2011 2011 2q 2011 $9.60 2q 4q 2011 2011 2q 2011 Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2011 474 9,001,132 485,324 5.4% 7,815 0 0 0 0 $10.99 2011 2q 474 9,001,132 493,139 5.5% (39,864) 0 0 0 0 $10.18 2011 474 9,001,132 453,275 5.0% (26,039) 0 0 0 0 $10.51 4q 474 9,001,132 427,236 4.7% 18,072 0 0 0 0 $10.62 474 9,001,132 445,308 4.9% (36,550) 0 0 0 0 $11.24 2q 474 9,001,132 408,758 4.5% (24,147) 0 0 0 0 $11.12 474 9,001,132 384,611 4.3% 25,228 0 0 0 0 $11.15 4q 474 9,001,132 409,839 4.6% (21,400) 0 0 0 0 $11.04 474 9,001,132 388,439 4.3% (30,220) 0 0 0 0 $10.63 2q 474 9,001,132 358,219 4.0% 56,411 0 0 0 0 $10.73 474 9,001,132 414,630 4.6% 50,346 0 0 0 0 $10.55 2008 4q 474 9,001,132 464,976 5.2% (138,580) 0 0 0 0 $10.76 2008 474 9,001,132 326,396 3.6% (34,746) 0 0 0 0 $10.92 2008 2q 474 9,001,132 291,650 3.2% (53,650) 0 0 0 0 $10.59 2008 474 9,001,132 238,000 2.6% 55,650 0 0 0 0 $10.19 2007 4q 474 9,001,132 293,650 3.3% (25,100) 0 0 0 0 $9.83 2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 17