The CoStar Industrial Report. T h i r d Q u a r t e r Minneapolis Industrial Market

The CoStar Industrial Report T h i r d Q u a r t e r 2 0 1 4

Third Quarter 2014 Minneapolis Table of Contents Table of Contents................................................................. A Methodology...................................................................... B Terms & Definitions................................................................ C Market Highlights & Overview........................................................ 1 CoStar Markets.................................................................... 4 Inventory & Development Analysis..................................................... 5 Inventory & Development Analysis Select Top Deliveries Select Top Under Construction Properties Figures at a Glance................................................................. 9 Figures at a Glance by Building Type & Market Historical Figures at a Glance Leasing Activity Analysis............................................................ 11 Select Top Lease Transactions Sales Activity Analysis.............................................................. 13 Sales Activity Analysis Select Top Sales Transactions Analysis of Individual CoStar Submarket Clusters........................................ 15 Chisago County Market East Market Isanti County Market Midway Market Minneapolis Market North Central Market Northwest Market Pierce County Market Sherburne County Market South Central Market Southwest Market St Croix County Market St Paul Market Stearns County Market Wright County Market 2014 CoStar Group, Inc. The CoStar Industrial Report A

Minneapolis Third Quarter 2014 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 multitenant 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. 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 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.

Third Quarter 2014 Minneapolis 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-ofa-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. : 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 building-type 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) 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 2014 CoStar Group, Inc. The CoStar Industrial Report C

Minneapolis Third Quarter 2014 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. Rental Rate: The asking rate per square foot for a particular building or unit of space by a broker or property owner. 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: Buildings in a state of construction, up until they receive their certificate of occupancy. In order for CoStar to consider a building under construction, the site must have a concrete foundation in place. Abbreviated UC. 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.

Overview Third Quarter 2014 Minneapolis Minneapolis s Stays at 6.4% Net Absorption Positive 201,293 SF in the Quarter The Minneapolis Industrial market ended the third quarter 2014 with a vacancy rate of 6.4%. The vacancy rate was unchanged over the previous quarter, with net absorption totaling positive 201,293 square feet in the third quarter. Vacant sublease space increased in the quarter, ending the quarter at 1,196,297 square feet. Rental rates ended the third quarter at $6.09, no change over the previous quarter. A total of three buildings delivered to the market in the quarter totaling 308,910 square feet, with 2,117,222 square feet still under construction at the end of the quarter. Absorption Net absorption for the overall Minneapolis Industrial market was positive 201,293 square feet in the third quarter 2014. That compares to positive 346,146 square feet in the second quarter 2014, negative (94,851) square feet in the first quarter 2014, and positive 49,792 square feet in the fourth quarter 2013. Tenants moving out of large blocks of space in 2014 include: Ruan moving out of (252,978) square feet at 7101 Winnetka Ave N, Murphy Warehouse Company moving out of (103,714) square feet at 2565-2575 Kasota Ave, and MTS Systems Corporation moving out of (78,475) square feet at 950 Lake Dr. Tenants moving into large blocks of space in 2014 include: FedEx moving into 285,000 square feet at 8450 Revere Ln N, Graco, Inc moving into 227,054 square feet at 13225 Brockton Ln N, and Shutterfly moving into 217,622 square feet at 5005 Deans Lake Blvd. The Flex building market recorded net absorption of positive 54,672 square feet in the third quarter 2014, compared to negative (104,004) square feet in the second quarter 2014, negative (76,795) in the first quarter 2014, and negative (46,030) in the fourth quarter 2013. The Warehouse building market recorded net absorption of positive 146,621 square feet in the third quarter 2014 compared to positive 450,150 square feet in the second quarter 2014, negative (18,056) in the first quarter 2014, and positive 95,822 in the fourth quarter 2013. The Industrial vacancy rate in the Minneapolis market area remained at 6.4% at the end of the third quarter 2014. The vacancy rate was 6.4% at the end of the second quarter 2014, 6.5% at the end of the first quarter 2014, and 6.4% at the end of the fourth quarter 2013. Flex projects reported a vacancy rate of 10.2% at the end of the third quarter 2014, 10.3% at the end of the second quarter 2014, 9.9% at the end of the first quarter 2014, and 9.8% at the end of the fourth quarter 2013. Warehouse projects reported a vacancy rate of 5.4% at the end of the third quarter 2014, 5.4% at the end of second quarter 2014, 5.7% at the end of the first quarter 2014, and 5.5% at the end of the fourth quarter 2013. Largest Lease Signings The largest lease signings occurring in 2014 included: the 485,804-square-foot lease signed by Room & Board at 6601 Rates by Building Type 2006-2014 12% Flex Warehouse Total Market 10% 8% Rate 6% 4% 2% 0% 2006 1q 2007 1q 2008 1q 2009 1q 2010 1q 2011 1q 2012 1q 2013 1q 2014 1q 2014 CoStar Group, Inc. The CoStar Industrial Report 1

Minneapolis Third Quarter 2014 Overview NE Queens Ave in the Wright County market; the 304,000- square-foot deal signed by FedEx at 12395 N Brockton Ln in the Northwest market; and the 300,000-square-foot lease signed by Ruan at 6700 Queens Ave NE in the Wright County market. Sublease The amount of vacant sublease space in the Minneapolis market increased to 1,196,297 square feet by the end of the third quarter 2014, from 938,742 square feet at the end of the second quarter 2014. There was 905,087 square feet vacant at the end of the first quarter 2014 and 823,397 square feet at the end of the fourth quarter 2013. Minneapolis s Flex projects reported vacant sublease space of 127,072 square feet at the end of third quarter 2014, up from the 89,750 square feet reported at the end of the second quarter 2014. There were 120,143 square feet of sublease space vacant at the end of the first quarter 2014, and 109,107 square feet at the end of the fourth quarter 2013. Warehouse projects reported increased vacant sublease space from the second quarter 2014 to the third quarter 2014. Sublease vacancy went from 848,992 square feet to 1,069,225 square feet during that time. There was 784,944 square feet at the end of the first quarter 2014, and 714,290 square feet at the end of the fourth quarter 2013. U.S. Comparison Past 9 Quarters Rate 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Minneapolis United States 2012 3q 2013 1q 2013 3q 2014 1q 2014 3q Rental Rates The average quoted asking rental rate for available Industrial space was $6.09 per square foot per year at the end of the third quarter 2014 in the Minneapolis market area. This represented a 0.0% change in quoted rental rates from the end of the second quarter 2014, when rents were reported at $6.09 per square foot. The average quoted rate within the Flex sector was $8.36 per square foot at the end of the third quarter 2014, while Warehouse rates stood at $5.57. At the end of the second quarter 2014, Flex rates were $8.28 per square foot, and Warehouse rates were $5.59. Deliveries and Construction During the third quarter 2014, three buildings totaling 308,910 square feet were completed in the Minneapolis market area. This compares to five buildings totaling 794,308 square feet that were completed in the second quarter 2014, three buildings totaling 398,362 square feet completed in the first quarter 2014, and 725,190 square feet in five buildings completed in the fourth quarter 2013. There were 2,117,222 square feet of Industrial space under construction at the end of the third quarter 2014. Some of the notable 2014 deliveries include: 8450 Revere Ln N, a 285,000-square-foot facility that delivered in first quarter 2014 and is now 100% occupied, and 13325 Brockton Ln N- Liberty Industrial Park Building 3, a 227,054-square-foot building that delivered in third quarter 2014 and is now 100% occupied. The largest projects underway at the end of third quarter 2014 were Room & Board- 6601 NE Queens Ave, a 485,804- square-foot building with 100% of its space pre-leased, and FedEx Distribution- 12395 N Brockton Ln, a 304,000-squarefoot facility that is 100% pre-leased. Inventory Total Industrial inventory in the Minneapolis market area amounted to 371,669,809 square feet in 9,750 buildings as of the end of the third quarter 2014. The Flex sector consisted of 74,565,887 square feet in 1,824 projects. The Warehouse sector consisted of 297,103,922 square feet in 7,926 buildings. Within the Industrial market there were 816 owner-occupied buildings accounting for 63,266,190 square feet of Industrial space. Sales Activity Tallying industrial building sales of 15,000 square feet or larger, Minneapolis industrial sales figures rose during the second quarter 2014 in terms of dollar volume compared to the first quarter of 2014. In the second quarter, 43 industrial transactions closed with a total volume of $139,098,358. The 43 buildings totaled 3,468,563 square feet and the average price per square foot equated to $40.10 per square foot. That compares to 39 transactions totaling $78,645,871 in the first quarter. The total square footage was 1,697,579 for an average price per square foot of $46.33. Total year-to-date industrial building sales activity in 2014 is up compared to the previous year. In the first six months of 2014, the market saw 82 industrial sales transactions with a total volume of $217,744,229. The price per square foot has averaged $42.15 this year. In the first six months of 2013, the market posted 72 transactions with a total volume of $214,600,863. The price per square foot averaged $49.65. 2 The CoStar Industrial Report 2014 CoStar Group, Inc.

Overview Third Quarter 2014 Minneapolis Cap rates have been lower in 2014, averaging 8.14%, compared to the first six months of last year when they averaged 9.13%. One of the largest transactions that has occurred within the last four quarters in the Minneapolis market is the sale of 5005 Deans Lake Blvd- Shutterfly in Shakopee. This 217,622- square-foot industrial building sold for $28,600,000, or $131.42 per square foot. The property sold on 6/30/2014, at a 7.23% cap rate. Reports compiled by: Lauren Kraemer, CoStar Research Manager and the Minneapolis Research Team Absorption & Deliveries Past 9 Quarters Net Absorption Deliveries 1.2 1.1 1.0 0.8 0.8 0.7 0.7 0.6 0.6 0.4 0.3 0.4 0.4 0.3 0.2 0.1 0.2 0.2 0.1 0.0 0.0 0.0 0.2 0.3 (0.2) (0.1) 2012 3q 2013 1q 2013 3q 2014 1q 2014 3q 2014 CoStar Group, Inc. The CoStar Industrial Report 3

Minneapolis Third Quarter 2014 Markets CoStar Submarkets In analyzing metropolitan areas, CoStar has developed geographic designations to help group properties together, called Markets, Submarket Clusters and Submarkets. Markets 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. Markets are then divided into Submarket Clusters, 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. Submarket Clusters Chisago County Ind East Ind Isanti County Ind Midway Ind Minneapolis Ind North Central Ind Northwest Ind Pierce County Ind Sherburne County Ind South Central Ind Southwest Ind St Croix County Ind St Paul Ind Stearns County Ind Wright County Ind 4 The CoStar Industrial Report 2014 CoStar Group, Inc.

Inventory & development Third Quarter 2014 Minneapolis Historical Deliveries 1982-2014 12.0 Deliveries 10.6 10.2 10.7 Average Delivered SF Millions of SF 10.0 8.0 6.0 4.0 2.0 0.0 8.5 8.3 8.5 8.0 7.6 7.4 7.3 7.2 6.7 6.4 5.7 5.7 4.6 4.3 3.4 3.5 3.6 3.6 2.2 2.6 3.1 2.9 3.4 2.6 2.7 2.2 1.1 0.8 0.2 0.3 1982 1986 1990 1994 1998 2002 2006 2010 2014 * Future deliveries based on current under construction buildings. Construction Activity Markets Ranked by Under Construction RBA Under Construction Inventory Average Bldg Size Market # Bldgs Total RBA Preleased SF Preleased % All Existing U/C Northwest Ind 6 1,065,599 723,309 67.9% 52,003 177,600 Wright County Ind 2 785,804 785,804 100.0% 18,862 392,902 North Central Ind 3 191,005 61,350 32.1% 36,367 63,668 South Central Ind 1 71,934 0 0.0% 43,600 71,934 Stearns County Ind 1 2,880 0 0.0% 26,300 2,880 St Croix County Ind 0 0 0 0.0% 26,140 0 Minneapolis Ind 0 0 0 0.0% 33,437 0 Chisago County Ind 0 0 0 0.0% 20,598 0 Isanti County Ind 0 0 0 0.0% 19,440 0 East Ind 0 0 0 0.0% 38,248 0 All Other 0 0 0 0.0% 41,345 0 Totals 13 2,117,222 1,570,463 74.2% 38,120 162,863 Recent Deliveries Leased & Un-Leased SF in Deliveries Since 2010 Future Deliveries Preleased & Un-Leased SF in Properties Scheduled to Deliver 3.0 Leased Un-Leased 1,600 Preleased Un-Leased 2.5 1,400 1,200 Millions of SF 2.0 1.5 1.0 Thousands of SF 1,000 800 600 T 400 0.5 200 0.0 2010 2012 2014 0 2014 4q 2014 CoStar Group, Inc. The CoStar Industrial Report 5

Minneapolis Third Quarter 2014 Inventory & development Historical Construction Starts & Deliveries Square Footage Per Quarter Starting and Completing Construction 1.2 Construction Starts Deliveries 1.0 1.0 1.1 0.9 1.0 Millions of SF 0.8 0.6 0.4 0.2 0.0 0.3 0.1 0.1 0.0 0.3 0.0 0.4 0.2 0.0 0.0 0.2 0.3 0.0 0.8 0.1 0.2 0.5 0.2 0.8 0.8 0.7 0.7 0.4 0.0 0.8 0.3 2011 1q 2012 1q 2013 1q 2014 1q 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 3 119,543 58,090 48.6% $10.13 40,000 79,543 50,000 SF - 99,999 SF 1 75,675 0 0.0% $0.00 0 75,675 100,000 SF - 249,999 SF 6 1,021,362 821,362 80.4% $4.35 821,362 200,000 250,000 SF - 499,999 SF 1 285,000 285,000 100.0% $0.00 285,000 0 >= 500,000 SF 0 0 0 0.0% $0.00 0 0 Recent Development by Tenancy Comparison Based on RBA Developed for Single & Multi-Tenant Use Based on Total RBA 2014 Deliveries Currently Under Construction By Building Type By Tenancy Type 16% 76% 24% 80% 20% 51% 49% 84% Multi Single Multi Single Flex Warehouse Multi Single 6 The CoStar Industrial Report 2014 CoStar Group, Inc.

Inventory & development Third Quarter 2014 Minneapolis 2014 CoStar Group, Inc. The CoStar Industrial Report 7

Minneapolis Third Quarter 2014 Inventory & development 8 The CoStar Industrial Report 2014 CoStar Group, Inc.

Figures at a Glance Third Quarter 2014 Minneapolis Flex Market Statistics Third Quarter 2014 YTD Net YTD Under Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Chisago County Ind 6 88,404 20,920 20,920 23.7% 1,800 0 0 $9.00 East Ind 221 8,096,426 760,972 762,502 9.4% (135,034) 37,687 0 $10.93 Isanti County Ind 6 129,371 0 0 0.0% 0 0 0 $6.50 Midway Ind 144 5,823,817 459,209 495,765 8.5% (46,652) 0 0 $7.46 Minneapolis Ind 42 2,367,797 158,361 183,361 7.7% 11,222 0 0 $16.83 North Central Ind 274 10,534,454 812,379 812,379 7.7% 2,944 0 0 $8.51 Northwest Ind 200 10,509,980 925,980 934,436 8.9% 182,265 0 0 $7.82 Pierce County Ind 1 31,328 0 0 0.0% 0 0 0 $0.00 Sherburne County Ind 17 486,480 7,500 7,500 1.5% 22,400 0 0 $6.01 South Central Ind 340 12,128,019 1,178,478 1,178,478 9.7% (28,007) 0 0 $7.32 Southwest Ind 403 20,245,028 2,882,838 2,938,368 14.5% (180,752) 176,686 0 $8.03 St Croix County Ind 22 489,628 40,905 40,905 8.4% 59,011 0 0 $6.22 St Paul Ind 103 2,877,491 167,777 167,777 5.8% 7,385 0 0 $9.24 Stearns County Ind 16 299,562 10,647 10,647 3.6% (4,647) 0 0 $7.48 Wright County Ind 29 458,102 27,883 27,883 6.1% (18,062) 0 0 $7.21 Totals 1,824 74,565,887 7,453,849 7,580,921 10.2% (126,127) 214,373 0 $8.36 Warehouse Market Statistics Third Quarter 2014 YTD Net YTD Under Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Chisago County Ind 170 3,536,899 76,996 76,996 2.2% 17,240 0 0 $3.58 East Ind 286 11,295,356 360,434 368,834 3.3% 81,225 0 0 $6.74 Isanti County Ind 99 1,911,823 2,100 2,100 0.1% 15,015 0 0 $5.28 Midway Ind 321 20,148,848 1,155,772 1,284,268 6.4% 66,496 0 0 $4.86 Minneapolis Ind 676 21,639,627 816,299 826,299 3.8% (19,347) 0 0 $4.96 North Central Ind 1,361 48,924,860 1,694,782 1,975,417 4.0% 238,150 40,000 191,005 $5.55 Northwest Ind 977 50,697,033 2,795,512 3,175,235 6.3% 581,575 512,054 1,065,599 $6.22 Pierce County Ind 90 1,089,784 8,020 8,020 0.7% 5,700 0 0 $3.04 Sherburne County Ind 293 6,651,771 218,550 218,550 3.3% 85,856 100,000 0 $4.90 South Central Ind 769 36,224,271 1,890,403 1,998,121 5.5% 270,527 41,856 71,934 $5.91 Southwest Ind 1,187 51,615,858 4,127,384 4,185,637 8.1% 304,231 593,297 0 $5.09 St Croix County Ind 374 9,861,631 438,997 438,997 4.5% 12,759 0 0 $5.37 St Paul Ind 326 10,310,634 810,293 810,293 7.9% (934,660) 0 0 $6.58 Stearns County Ind 562 14,901,690 421,005 421,005 2.8% (8,168) 0 2,880 $4.46 Wright County Ind 435 8,293,837 212,775 308,775 3.7% (137,884) 0 785,804 $5.75 Totals 7,926 297,103,922 15,029,322 16,098,547 5.4% 578,715 1,287,207 2,117,222 $5.57 Total Industrial Market Statistics Third Quarter 2014 YTD Net YTD Under Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Chisago County Ind 176 3,625,303 97,916 97,916 2.7% 19,040 0 0 $3.66 East Ind 507 19,391,782 1,121,406 1,131,336 5.8% (53,809) 37,687 0 $8.47 Isanti County Ind 105 2,041,194 2,100 2,100 0.1% 15,015 0 0 $5.53 Midway Ind 465 25,972,665 1,614,981 1,780,033 6.9% 19,844 0 0 $5.24 Minneapolis Ind 718 24,007,424 974,660 1,009,660 4.2% (8,125) 0 0 $5.92 North Central Ind 1,635 59,459,314 2,507,161 2,787,796 4.7% 241,094 40,000 191,005 $6.00 Northwest Ind 1,177 61,207,013 3,721,492 4,109,671 6.7% 763,840 512,054 1,065,599 $6.44 Pierce County Ind 91 1,121,112 8,020 8,020 0.7% 5,700 0 0 $3.04 Sherburne County Ind 310 7,138,251 226,050 226,050 3.2% 108,256 100,000 0 $4.93 South Central Ind 1,109 48,352,290 3,068,881 3,176,599 6.6% 242,520 41,856 71,934 $6.19 Southwest Ind 1,590 71,860,886 7,010,222 7,124,005 9.9% 123,479 769,983 0 $5.96 St Croix County Ind 396 10,351,259 479,902 479,902 4.6% 71,770 0 0 $5.40 St Paul Ind 429 13,188,125 978,070 978,070 7.4% (927,275) 0 0 $7.02 Stearns County Ind 578 15,201,252 431,652 431,652 2.8% (12,815) 0 2,880 $4.54 Wright County Ind 464 8,751,939 240,658 336,658 3.8% (155,946) 0 785,804 $5.81 Totals 9,750 371,669,809 22,483,171 23,679,468 6.4% 452,588 1,501,580 2,117,222 $6.09 2014 CoStar Group, Inc. The CoStar Industrial Report 9

Minneapolis Third Quarter 2014 Figures at a Glance Flex Market Statistics Third Quarter 2014 Net Deliveries UC Inventory Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates 2014 3q 1,824 74,565,887 7,453,849 7,580,921 10.2% 54,672 0 0 0 0 $8.36 2014 2q 1,825 74,609,295 7,589,251 7,679,001 10.3% (104,004) 1 176,686 0 0 $8.28 2014 1q 1,824 74,432,609 7,278,168 7,398,311 9.9% (76,795) 1 37,687 1 176,686 $8.32 2013 4q 1,823 74,394,922 7,174,722 7,283,829 9.8% (46,030) 1 78,320 2 214,373 $8.51 2013 3q 1,822 74,316,602 7,073,023 7,159,479 9.6% (254,538) 1 68,000 3 292,693 $8.25 2013 2q 1,821 74,248,602 6,729,305 6,836,941 9.2% 214,229 0 0 2 146,320 $8.01 2013 1q 1,822 74,802,052 7,495,484 7,604,620 10.2% 283,237 0 0 1 68,000 $7.96 2012 4q 1,822 74,802,052 7,810,041 7,887,857 10.5% 225,542 0 0 1 68,000 $8.01 2012 3q 1,822 74,802,052 8,038,745 8,113,399 10.8% (57,789) 0 0 0 0 $7.91 2012 2q 1,822 74,802,052 7,967,001 8,055,610 10.8% 403,865 1 126,111 0 0 $7.85 2012 1q 1,821 74,675,941 8,212,514 8,333,364 11.2% (475,393) 0 0 1 126,111 $7.83 2011 1,821 74,675,941 7,769,948 7,857,971 10.5% (774,836) 3 131,542 1 126,111 $7.89 2010 1,818 74,544,399 6,826,037 6,951,593 9.3% 640,621 0 0 3 131,542 $8.09 2009 1,818 74,544,399 7,448,945 7,592,214 10.2% (226,726) 4 155,424 0 0 $8.43 2008 1,814 74,388,975 6,857,120 7,210,064 9.7% 667,676 14 738,292 1 6,299 $8.89 2007 1,800 73,650,683 6,909,250 7,139,448 9.7% 1,572,597 22 848,781 11 628,970 $8.11 Warehouse Market Statistics Third Quarter 2014 Net Deliveries UC Inventory Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates 2014 3q 7,926 297,103,922 15,029,322 16,098,547 5.4% 146,621 3 308,910 13 2,117,222 $5.57 2014 2q 7,923 296,795,012 15,087,266 15,936,258 5.4% 450,150 4 617,622 10 1,420,085 $5.59 2014 1q 7,921 297,225,390 16,031,842 16,816,786 5.7% (18,056) 2 360,675 9 1,110,412 $5.53 2013 4q 7,919 296,864,715 15,723,765 16,438,055 5.5% 95,822 4 646,870 9 1,426,351 $5.53 2013 3q 7,917 296,606,574 14,669,506 16,275,736 5.5% 417,116 1 640,000 7 1,225,167 $5.46 2013 2q 7,916 295,966,574 14,435,272 16,052,852 5.4% (103,121) 3 173,300 5 1,286,870 $5.44 2013 1q 7,913 295,793,274 14,140,601 15,776,431 5.3% 77,855 5 1,058,986 6 1,054,700 $5.44 2012 4q 7,910 295,334,288 14,857,170 15,395,300 5.2% 409,158 1 89,488 9 1,872,286 $5.40 2012 3q 7,910 295,308,632 15,244,842 15,778,802 5.3% 400,717 0 0 8 1,274,974 $5.40 2012 2q 7,911 295,315,187 15,499,452 16,186,074 5.5% 675,340 1 81,664 4 992,486 $5.33 2012 1q 7,910 295,233,523 16,105,068 16,779,750 5.7% (297,651) 1 6,955 1 81,664 $5.28 2011 7,910 295,281,182 15,849,376 16,529,758 5.6% 708,363 12 692,872 2 88,619 $5.27 2010 7,900 294,812,550 16,165,012 16,769,489 5.7% 717,229 6 207,226 8 303,185 $5.31 2009 7,898 294,897,686 16,993,656 17,571,854 6.0% (1,054,904) 22 903,467 4 180,786 $5.70 2008 7,878 294,178,358 15,349,285 15,797,622 5.4% 2,113,906 40 1,883,696 22 852,467 $5.87 2007 7,842 292,566,245 15,910,214 16,299,415 5.6% 3,501,295 63 2,576,278 33 1,415,542 $5.59 Total Industrial Market Statistics Third Quarter 2014 Net Deliveries UC Inventory Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates 2014 3q 9,750 371,669,809 22,483,171 23,679,468 6.4% 201,293 3 308,910 13 2,117,222 $6.09 2014 2q 9,748 371,404,307 22,676,517 23,615,259 6.4% 346,146 5 794,308 10 1,420,085 $6.09 2014 1q 9,745 371,657,999 23,310,010 24,215,097 6.5% (94,851) 3 398,362 10 1,287,098 $6.04 2013 4q 9,742 371,259,637 22,898,487 23,721,884 6.4% 49,792 5 725,190 11 1,640,724 $6.10 2013 3q 9,739 370,923,176 21,742,529 23,435,215 6.3% 162,578 2 708,000 10 1,517,860 $6.04 2013 2q 9,737 370,215,176 21,164,577 22,889,793 6.2% 111,108 3 173,300 7 1,433,190 $5.98 2013 1q 9,735 370,595,326 21,636,085 23,381,051 6.3% 361,092 5 1,058,986 7 1,122,700 $5.99 2012 4q 9,732 370,136,340 22,667,211 23,283,157 6.3% 634,700 1 89,488 10 1,940,286 $5.94 2012 3q 9,732 370,110,684 23,283,587 23,892,201 6.5% 342,928 0 0 8 1,274,974 $5.92 2012 2q 9,733 370,117,239 23,466,453 24,241,684 6.5% 1,079,205 2 207,775 4 992,486 $5.84 2012 1q 9,731 369,909,464 24,317,582 25,113,114 6.8% (773,044) 1 6,955 2 207,775 $5.80 2011 9,731 369,957,123 23,619,324 24,387,729 6.6% (66,473) 15 824,414 3 214,730 $5.80 2010 9,718 369,356,949 22,991,049 23,721,082 6.4% 1,357,850 6 207,226 11 434,727 $5.83 2009 9,716 369,442,085 24,442,601 25,164,068 6.8% (1,281,630) 26 1,058,891 4 180,786 $6.19 2008 9,692 368,567,333 22,206,405 23,007,686 6.2% 2,781,582 54 2,621,988 23 858,766 $6.50 2007 9,642 366,216,928 22,819,464 23,438,863 6.4% 5,073,892 85 3,425,059 44 2,044,512 $6.17 10 The CoStar Industrial Report 2014 CoStar Group, Inc.

Leasing Activity Third Quarter 2014 Minneapolis Historical Rental Rates Based on Rental Rates $9.00 Flex Warehouse Total Market $8.00 $7.00 Dollars/SF/Year $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 2012 3q 2013 1q 2013 3q 2014 1q 2014 3q by Available Space Type by Building Type Percent of All Vacant Space in Direct vs. Sublet Percent of All Vacant Space by Building Type Minneapolis United States Minneapolis United States 5% 2% 68% 32% 85% 15% 95% 98% Direct Sublet Direct Sublet Flex Warehouse Flex Warehouse U.S. Rental Rate Comparison Based on Average Rental Rates Future Space Available Space Scheduled to be Available for Occupancy* Dollars/SF/Year Minneapolis United States $6.20 $6.00 $5.80 $5.60 $5.40 $5.20 $5.00 $4.80 $4.60 2012 3q 2013 1q 2013 3q 2014 1q 2014 3q Millions 2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 1.8 1.0 0.0 0.0 0.0 0.0 2014 4q 2015 2q 2015 4q * Includes Under Construction Space 2014 CoStar Group, Inc. The CoStar Industrial Report 11

Minneapolis Third Quarter 2014 Leasing Activity Select Top Industrial Leases Based on Leased Square Footage For Deals Signed in 2014 Building Submarket SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company 1 Room & Board Wright County Ind 485,804 3rd Room & Board TEGRA Group CBRE 2 FedEx Distribution Northwest Ind 304,000 2nd FedEx N/A Scannell Properties 3 Gateway North Business Center II Wright County Ind 300,000 2nd Ruan Calhoun Commercial CBRE 4 Aldrin Distribution Center II South Central Ind 185,000 3rd N/A N/A CBRE 5 Olympus Technologies Northwest Ind 181,000 2nd Olympus Surgical Technologies N/A Ryan Companies US, Inc. 6 11225 NW Xeon St North Central Ind 145,775 1st Life Fitness CBRE Cushman & Wakeeld/NorthMarq 7 North Cross Business Park - Building 1 Northwest Ind 143,440 3rd Wurth Adam N/A N/A 8 Bayer CropScience Southwest Ind 135,000 2nd Bayer CropScience Cassidy Turley Ryan Companies US, Inc. 9 1170 Grey Fox Rd North Central Ind 132,000 3rd N/A N/A Transwestern 10 LDI Headquarters Northwest Ind 112,000 1st N/A N/A Paramount Real Estate Corporation; 11 Plymouth Corporate Center Northwest Ind 108,018 3rd TCF Bank N/A CBRE 12 5905 Trenton Ln Northwest Ind 100,384 3rd Creganna-Tactx Medical N/A Liberty Property Trust 13 5402 Dean Lakes Blvd Southwest Ind 100,000 1st CenturyLink Co. N/A Compass Datacenters 14 Archway Marketing Services* Northwest Ind 97,316 1st Skybridge Marketing Group N/A Zeller Realty Group 15 Interstate North Distribution Center III Northwest Ind 96,764 2nd Goodwill N/A Colliers International 16 Armstrong Industrial Center South Central Ind 87,402 1st Databank Holdings, LTD JLL Liberty Property Trust 17 Goodyear Wholesale Tire Center* Southwest Ind 83,908 3rd Goodyear N/A Cushman & Wakeeld/NorthMarq 18 Northland Interstate Business Center IV Northwest Ind 78,500 2nd N/A N/A Altus Properties, LLC 19 River Crossings Dist Ctr Southwest Ind 76,039 3rd CyberPower Systems (USA), Inc., Cushman & Wakeeld/NorthMarq Cushman & Wakeeld/NorthMarq 20 Interstate North Distribution Center II Northwest Ind 70,771 3rd Cleareld, Inc. TEGRA Group Colliers International 21 North Cross Business Park - Building 3 Northwest Ind 70,400 3rd Perbix N/A N/A 22 Park 200- Phase II Southwest Ind 68,176 2nd Cameron s Coee Distribution Company N/A Liberty Property Trust 23 MSP Midway Industrial Park - #13* Midway Ind 60,434 2nd K&M Tire N/A Colliers International 24 Xenium Distribution Center Northwest Ind 59,517 2nd World Data Products CGC Commercial Cushman & Wakeeld/NorthMarq 25 Medicine Lake Industrial Center Northwest Ind 51,025 3rd M S International, Inc. CBRE Cassidy Turley 26 1201 Beaudry Blvd St Croix County Ind 51,000 1st N/A N/A Direct Deal 27 Tech West 55 Northwest Ind 46,333 2nd N/A N/A Colliers International 28 4455 White Bear Pky* East Ind 46,294 1st Smarte Carte, Inc. Gaughan Companies DTZ 29 Nicollet Business Campus VII* South Central Ind 46,042 2nd Buddies Kitchen Inc. N/A Altus Properties, LLC 30 12th Ave Distribution Center Northwest Ind 44,200 3rd Value Merchandise International Inc JLL CBRE 31 Circle Star Warehouse* Northwest Ind 40,751 1st Hamer, LLC N/A Liberty Property Trust 32 Center Building, Excelsior Tech Center Southwest Ind 40,521 1st Batory Foods Direct Deal Beard Group, Inc. 33 4200 Norex Dr Southwest Ind 40,205 2nd Lifetime Fitness N/A The C. Chase Company 34 8800 S Queen Ave Southwest Ind 40,000 1st Bloomington School District Oces N/A Cushman & Wakeeld/NorthMarq 35 University Industrial Park II Midway Ind 38,871 2nd N/A N/A CBRE 36 Granada Business Center - Phase II Building B East Ind 34,385 2nd Smith s Medical N/A Colliers International 37 3401 NE Spring St* Midway Ind 33,630 3rd American Financial Printing, Inc. Direct Deal CBRE 38 Mounds View Business Park - Building H North Central Ind 32,610 3rd Magno International N/A CBRE 39 MSP Midway Industrial Park - #6 Midway Ind 30,962 3rd Jobs Foundation N/A Colliers International 40 1350 Budd Ave Southwest Ind 29,903 1st Leap Technologies N/A Direct Deal * Renewal 12 The CoStar Industrial Report 2014 CoStar Group, Inc.

Sales Activity Third Quarter 2014 Minneapolis The Optimist Sales Index Average of Two Highest Price/SF's and Two Lowest Cap Rates Per Quarter 10.0% Cap Rate Price/SF $140 Cap Rate Percentage 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% $120 $100 $80 $60 $40 $20 Dollars/SF 0.0% 2011 3q 2012 3q 2013 3q $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 2013 - June 2014 $300 Sales Volume Price/SF $60 Bldg Size # RBA $ Volume Price/SF Cap Rate Millions of Sales Volume Dollars $250 $200 $150 $100 $50 $50 $40 $30 $20 $10 Price/SF < 25,000 SF 25K-99K SF 100K-249K SF 111 1,663,329 $100,754,428 $ 60.57 9.17% 89 4,373,434 $164,377,481 $ 37.59 9.79% 21 3,191,112 $183,059,684 $ 57.37 9.15% $0 2011 1q 2012 1q 2013 1q 2014 1q $0 >250K SF 11 4,892,619 $89,818,550 $ 18.36 9.65% 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 $70 Minneapolis US 12.0% Minneapolis US $60 10.0% $50 $40 $30 $20 Cap Rate Percentage 8.0% 6.0% 4.0% $10 2.0% $0 0.0% 2011 1q 2012 1q 2013 1q 2014 1q 2011 1q 2012 1q 2013 1q 2014 1q Source: CoStar COMPS Source: CoStar COMPS 2014 CoStar Group, Inc. The CoStar Industrial Report 13

14 The CoStar Industrial Report 2014 CoStar Group, Inc. Minneapolis Third Quarter 2014 Sales Activity

Deliveries, Absorption & C h i s a g o C o u n t y M a r k e t MARKET HIGHLIGHTS - Flex & Warehouse Third Quarter 2014 Minneapolis 0.120 0.100 0.080 0.060 0.040 0.020 0.000 (0.020) (0.040) Delivered SF Absorption SF 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Percent Vacant Vacant Space Rental Rates 0.16 0.14 Direct SF Sublet SF $5.00 $4.50 $4.00 0.12 0.10 0.08 0.06 0.04 Dollars/SF/Year $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 0.02 $0.50 0.00 $0.00 Net Delivered Inventory UC Inventory Period # Bldgs Total RBA Vacant SF % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2014 3q 176 3,625,303 97,916 2.7% 1,500 0 0 0 0 $3.66 2014 2q 176 3,625,303 99,416 2.7% 100 0 0 0 0 $3.73 2014 1q 176 3,625,303 99,516 2.7% 17,440 0 0 0 0 $3.59 2013 4q 176 3,625,303 116,956 3.2% 3,500 0 0 0 0 $3.59 2013 3q 176 3,625,303 120,456 3.3% 11,812 0 0 0 0 $3.73 2013 2q 176 3,625,303 132,268 3.6% 17,298 0 0 0 0 $4.30 2013 1q 176 3,625,303 149,566 4.1% 4,257 0 0 0 0 $4.36 2012 4q 176 3,625,303 153,823 4.2% 7,400 0 0 0 0 $4.37 2012 3q 176 3,625,303 161,223 4.4% 200 0 0 0 0 $4.26 2012 2q 176 3,625,303 161,423 4.5% (22,636) 0 0 0 0 $4.31 2012 1q 176 3,625,303 138,787 3.8% (7,012) 0 0 0 0 $4.22 2011 4q 176 3,625,303 131,775 3.6% 101,294 1 65,440 0 0 $4.23 2011 3q 175 3,559,863 167,629 4.7% (11,000) 0 0 1 65,440 $4.12 2011 2q 175 3,559,863 156,629 4.4% 5,500 0 0 1 65,440 $4.21 2011 1q 175 3,559,863 162,129 4.6% (1,321) 0 0 1 65,440 $4.27 2010 4q 175 3,559,863 160,808 4.5% 2,088 0 0 0 0 $4.47 2014 CoStar Group, Inc. The CoStar Industrial Report 15

Minneapolis Third Quarter 2014 Deliveries, Absorption & E a s t M a r k e t MARKET HIGHLIGHTS - Flex & Warehouse 0.150 Delivered SF Absorption SF 7.0% 0.100 6.0% 0.050 0.000 (0.050) (0.100) 5.0% 4.0% 3.0% 2.0% Percent Vacant (0.150) 1.0% (0.200) 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 0.0% Vacant Space Rental Rates 1.40 Direct SF Sublet SF $10.00 $9.00 1.20 $8.00 1.00 0.80 0.60 0.40 0.20 Dollars/SF/Year $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 0.00 $0.00 Net Delivered Inventory UC Inventory Period # Bldgs Total RBA Vacant SF % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2014 3q 507 19,391,782 1,131,336 5.8% 13,083 0 0 0 0 $8.47 2014 2q 507 19,391,782 1,144,419 5.9% (87,258) 0 0 0 0 $8.33 2014 1q 507 19,391,782 1,057,161 5.5% 20,366 1 37,687 0 0 $8.41 2013 4q 506 19,354,095 1,039,840 5.4% (25,226) 0 0 1 37,687 $8.80 2013 3q 506 19,354,095 1,014,614 5.2% (181,093) 0 0 1 37,687 $8.74 2013 2q 506 19,354,095 833,521 4.3% 29,626 0 0 0 0 $7.36 2013 1q 506 19,354,095 863,147 4.5% 113,366 1 66,500 0 0 $7.33 2012 4q 505 19,287,595 910,013 4.7% (153,370) 0 0 1 66,500 $6.93 2012 3q 505 19,287,595 756,643 3.9% 41,996 0 0 1 66,500 $6.84 2012 2q 505 19,287,595 798,639 4.1% (15,423) 0 0 0 0 $6.85 2012 1q 505 19,287,595 783,216 4.1% 22,129 0 0 0 0 $6.70 2011 4q 506 19,342,209 859,959 4.4% 7,861 0 0 0 0 $6.68 2011 3q 506 19,342,209 867,820 4.5% 75,390 0 0 0 0 $6.76 2011 2q 506 19,342,209 943,210 4.9% (2,230) 0 0 0 0 $6.75 2011 1q 506 19,342,209 940,980 4.9% (40,850) 0 0 0 0 $6.85 2010 4q 506 19,342,209 900,130 4.7% 114,427 0 0 0 0 $6.98 16 The CoStar Industrial Report 2014 CoStar Group, Inc.

Deliveries, Absorption & I s a n t i C o u n t y M a r k e t MARKET HIGHLIGHTS - Flex & Warehouse Third Quarter 2014 Minneapolis 0.080 0.060 0.040 Delivered SF Absorption SF 4.0% 3.5% 3.0% 0.020 0.000 (0.020) (0.040) 2.5% 2.0% 1.5% 1.0% 0.5% Percent Vacant (0.060) 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 0.0% Vacant Space Rental Rates 0.08 Direct SF Sublet SF $5.60 0.07 $5.50 0.06 0.05 0.04 0.03 0.02 0.01 Dollars/SF/Year $5.40 $5.30 $5.20 $5.10 $5.00 0.00 $4.90 Net Delivered Inventory UC Inventory Period # Bldgs Total RBA Vacant SF % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2014 3q 105 2,041,194 2,100 0.1% 0 0 0 0 0 $5.53 2014 2q 105 2,041,194 2,100 0.1% 15,015 0 0 0 0 $5.53 2014 1q 105 2,041,194 17,115 0.8% 0 0 0 0 0 $5.28 2013 4q 105 2,041,194 17,115 0.8% 55,966 0 0 0 0 $5.17 2013 3q 105 2,041,194 73,081 3.6% (48,740) 0 0 0 0 $5.27 2013 2q 105 2,041,194 24,341 1.2% 4,500 0 0 0 0 $5.27 2013 1q 105 2,041,194 28,841 1.4% 0 0 0 0 0 $5.27 2012 4q 105 2,041,194 28,841 1.4% 14,608 0 0 0 0 $5.27 2012 3q 105 2,041,194 43,449 2.1% 12,200 0 0 0 0 $5.31 2012 2q 105 2,041,194 55,649 2.7% (4,608) 0 0 0 0 $5.42 2012 1q 105 2,041,194 51,041 2.5% (9,360) 0 0 0 0 $5.38 2011 4q 105 2,041,194 41,681 2.0% 4,181 0 0 0 0 $5.22 2011 3q 105 2,041,194 45,862 2.2% 0 0 0 0 0 $5.22 2011 2q 105 2,041,194 45,862 2.2% 25,200 0 0 0 0 $5.20 2011 1q 105 2,041,194 71,062 3.5% 2,700 0 0 0 0 $5.24 2010 4q 105 2,041,194 73,762 3.6% 16,700 0 0 0 0 $5.41 2014 CoStar Group, Inc. The CoStar Industrial Report 17