The CoStar Industrial Report

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

Broward County Industrial Market FIRST QUARTER 2011 BROWARD COUNTY Table of Contents Table of Contents.................................................................... A Methodology........................................................................ B Terms & Definitions.................................................................. C Market Highlights & Overview......................................................... 1 CoStar Markets...................................................................... 3 Employment & Tenant Analysis........................................................ 4 Employment & Unemployment Analysis Tenant Profiles Inventory & Development Analysis 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 Select Top Lease Transactions Sales Activity Analysis............................................................... 13 Sales Activity Analysis Select Top Sales Transactions Select Same Building Sales Select Land Sales Analysis of Individual CoStar Markets.................................................. 16 Central Broward Market Coral Springs Market Northeast Broward Market Outlying Broward Market Pompano Beach Market Southeast Broward Market Southwest Broward Market West Sunrise Market 2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT A

BROWARD COUNTY FIRST QUARTER 2011 Broward 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. 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 2010 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.

Broward County Industrial Market FIRST QUARTER 2011 BROWARD 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

BROWARD COUNTY FIRST QUARTER 2011 Broward 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.

Broward County Industrial Market OVERVIEW FIRST QUARTER 2011 BROWARD COUNTY Broward County s Vacancy Increases to 9.5% Net Absorption Negative (412,819) SF in the Quarter The Broward County Industrial market ended the first quarter 2011 with a vacancy rate of 9.5%. The vacancy rate was up over the previous quarter, with net absorption totaling negative (412,819) square feet in the first quarter. Vacant sublease space increased in the quarter, ending the quarter at 554,310 square feet. Rental rates ended the first quarter at $7.59, a decrease over the previous quarter. There was 10,000 square feet still under construction at the end of the quarter. Absorption Net absorption for the overall Broward County Industrial market was negative (412,819) square feet in the first quarter 2011. That compares to positive 406,409 square feet in the fourth quarter 2010, positive 94,419 square feet in the third quarter 2010, and positive 322,370 square feet in the second quarter 2010. Tenants moving into large blocks of space in 2011 include: GA Telesis moving into 140,000 square feet at 1850 NW 49th St, K-1 Speed, Inc. moving into 75,803 square feet at 2950 Stirling Rd, and Challenge Warehousing moving into 65,669 square feet at Port 95 Commerce Park - Building 4. The Flex building market recorded net absorption of positive 5,827 square feet in the first quarter 2011, compared to positive 64,598 square feet in the fourth quarter 2010, positive 47,875 in the third quarter 2010, and positive 36,363 in the second quarter 2010. The Warehouse building market recorded net absorption of negative (418,646) square feet in the first quarter 2011 compared to positive 341,811 square feet in the fourth quarter 2010, positive 46,544 in the third quarter 2010, and positive 286,007 in the second quarter 2010. Vacancy The Industrial vacancy rate in the Broward County market area increased to 9.5% at the end of the first quarter 2011. The vacancy rate was 9.2% at the end of the fourth quarter 2010, 9.4% at the end of the third quarter 2010, and 9.5% at the end of the second quarter 2010. Flex projects reported a vacancy rate of 11.0% at the end of the first quarter 2011, 11.0% at the end of the fourth quarter 2010, 11.4% at the end of the third quarter 2010, and 11.6% at the end of the second quarter 2010. Warehouse projects reported a vacancy rate of 9.2% at the end of the first quarter 2011, 8.9% at the end of fourth quarter 2010, 9.1% at the end of the third quarter 2010, and 9.1% at the end of the second quarter 2010. Largest Lease Signings The largest lease signings occurring in 2011 included: the 66,095-square-foot lease signed by Gregg Appliances at Senaca North - Building M in the Southeast Broward market; the 65,669-square-foot deal signed by Challenge Warehousing at Port 95 Commerce Park - Building Four in the Southeast Broward market; and the 56,354-square-foot lease signed by Argo Turboserve Corporation at Premier Turnpike Park - Bldg One in the Pompano Beach market. Sublease Vacancy The amount of vacant sublease space in the Broward Vacancy Rates by Building Type 1999-2011 14% Flex Warehouse Total Market 12% 10% Vacancy Rate 8% 6% 4% 2% 0% 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 1

BROWARD COUNTY FIRST QUARTER 2011 Broward County Industrial Market OVERVIEW County market increased to 554,310 square feet by the end of the first quarter 2011, from 552,083 square feet at the end of the fourth quarter 2010. There was 516,349 square feet vacant at the end of the third quarter 2010 and 532,453 square feet at the end of the second quarter 2010. Broward County s Flex projects reported vacant sublease space of 82,777 square feet at the end of first quarter 2011, from the 82,777 square feet reported at the end of the fourth quarter 2010. There were 82,777 square feet of sublease space vacant at the end of the third quarter 2010, and 84,381 square feet at the end of the second quarter 2010. Warehouse projects reported increased vacant sublease space from the fourth quarter 2010 to the first quarter 2011. Sublease vacancy went from 469,306 square feet to 471,533 square feet during that time. There was 433,572 square feet at the end of the third quarter 2010, and 448,072 square feet at the end of the second quarter 2010. Rental Rates The average quoted asking rental rate for available Industrial space was $7.59 per square foot per year at the end of the first quarter 2011 in the Broward County market area. This represented a 1.4% decrease in quoted rental rates from the end of the fourth quarter 2010, when rents were reported at $7.70 per square foot. The average quoted rate within the Flex sector was $10.02 per square foot at the end of the first quarter 2011, while Warehouse rates stood at $7.27. At the end of the fourth quarter 2010, Flex rates were $10.18 per square foot, and Warehouse rates were $7.35. Deliveries and Construction During the first quarter 2011, no new space was completed in the Broward County market area. This compares to one building totaling 69,956 square feet that were completed in the fourth quarter 2010, nothing completed in the third quarter 2010, and U.S. Vacancy Comparison Past 7 Quarters Vacancy Rate 10.4% 10.2% 10.0% 9.8% 9.6% 9.4% 9.2% Broward County United States 69,064 square feet in one building completed in the second quarter 2010. The largest projects underway at the end of first quarter 2011 were 1950 Banks Rd, a 65,000-square-foot building and Extra Space Storage, a 50,518-square-foot facility. Inventory Total Industrial inventory in the Broward County market area amounted to 135,772,005 square feet in 6,580 buildings as of the end of the first quarter 2011. The Flex sector consisted of 18,832,080 square feet in 1,118 projects. The Warehouse sector consisted of 116,939,925 square feet in 5,462 buildings. Within the Industrial market there were 424 owner-occupied buildings accounting for 13,288,581 square feet of Industrial space. Sales Activity Tallying industrial building sales of 15,000 square feet or larger, Broward County industrial sales figures fell during the fourth quarter 2010 in terms of dollar volume compared to the third quarter of 2010. In the fourth quarter, 13 industrial transactions closed with a total volume of $31,702,462. The 13 buildings totaled 567,865 square feet and the average price per square foot equated to $55.83 per square foot. That compares to seven transactions totaling $54,970,977 in the third quarter. The total square footage was 762,529 for an average price per square foot of $72.09. Total year-to-date industrial building sales activity in 2010 is up compared to the previous year. In the twelve months of 2010, the market saw 36 industrial sales transactions with a total volume of $190,437,759. The price per square foot has averaged $72.03 this year. In the twelve months of 2009, the market posted 26 transactions with a total volume of $66,021,200. The price per square foot averaged $63.70. Cap rates have been lower in 2010, averaging 8.63%, compared to the twelve months of last year when they averaged 9.49%. One of the largest transactions that has occurred within the last four quarters in the Broward County market is the sale of Weston Business Center in Weston. This 687,118-square-foot industrial building sold for $65,000,000, or $94.60 per square foot. The property sold on 4/13/2010, at a 7.50% cap rate. Reports compiled by: Matt Burdette, CoStar Research Manager. 9.0% 8.8% 8.6% 2009 2009 4q 2010 2010 2q 2010 2010 4q 2011 Source: CoStar Property 2 THE COSTAR INDUSTRIAL REPORT 2011 COSTAR GROUP, INC.

Broward County Industrial Market MARKETS FIRST QUARTER 2011 BROWARD 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 Central Broward Ind Coral Springs Ind Northeast Broward Ind Outlying Broward Ind Pompano Beach Ind Southeast Broward Ind Southwest Broward Ind West Sunrise Ind 2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 3

BROWARD COUNTY FIRST QUARTER 2011 Broward County Industrial Market EMPLOYMENT AND TENANT Total Employment by Industry Percent of Total Employment by Industry Total Employment Growth Total Number of Jobs Added Per Year 4% 14% 11% 4% 0% 14% 3% 24% 17% 2% 7% Natural Resources & Mining Construction Manufacturing Trade, Transportation & Utilities Information Financial Activities Professional & Business Services Education & Health Services Leisure & Hospitality Other Services Government Percent Growth 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0% -4.0% -5.0% -6.0% -7.0% Broward County U.S. Average 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: Department of Labor, Bureau of Labor Statistics Source: Department of Labor, Bureau of Labor Statistics Total Employment Growth Cumulative Growth in Jobs Over the Past 5 Years Market Employment Growth Inventory Growth Difference Atlanta -8.40% 4.00% -12.40% Chicago -4.60% 4.10% -8.70% Dallas/Ft Worth 1.10% 7.10% -6.00% Denver -4.70% 3.30% -8.00% Detroit -11.00% 0.80% -11.80% Houston 2.90% 6.80% -3.90% Inland Empire (California) -10.60% 14.20% -24.80% Los Angeles -7.70% 1.30% -9.00% Northern New Jersey -5.60% 2.30% -7.90% Pittsburgh -2.80% 1.90% -4.70% Broward County -9.00% 4.30% -13.30% Source: Department of Labor, Bureau of Labor Statistics Historical Unemployment Rates Industrial* Employment Growth Number of Industrial* Jobs Added Per Year Percent Growth 4.0% Broward County U.S. Average 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0% -4.0% -5.0% -6.0% -7.0% -8.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: Department of Labor, Bureau of Labor Statistics. * Industrial employment is defined as jobs in the Manufacturing, and Trade, Transportation & Utilities industries 12.0% Broward County U.S. Average 10.0% Percent Unemployment 8.0% 6.0% 4.0% 2.0% 0.0% 2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 Source: Department of Labor, Bureau of Labor Statistics 4 THE COSTAR INDUSTRIAL REPORT 2011 COSTAR GROUP, INC.

Broward County Industrial Market EMPLOYMENT AND TENANT FIRST QUARTER 2011 BROWARD COUNTY Flex Tenants by Size Range Based on Total Number of Tenants Warehouse Tenants by Size Range Based on Total Number of Tenants 75,000 SF & Up 1.1% 75,000 SF & Up 3.9% 50,000-74,999 SF 0.9% 50,000-74,999 SF 3.2% 25,000-49,999 SF 3.3% 25,000-49,999 SF 9.9% 10,000-24,999 SF 10.3% 10,000-24,999 SF 20.6% 5,000-9,999 SF 16.1% 5,000-9,999 SF 13.6% 2,500-4,999 SF 24.5% 2,500-4,999 SF 17.4% Up to 2,499 SF 43.8% Up to 2,499 SF 31.4% 0% 10% 20% 30% 40% 50% Percentage of Tenants 0% 5% 10% 15% 20% 25% 30% 35% Percentage of Tenants Source: CoStar Tenant Flex Tenants by Lease Expiration Based on Total Square Footage of Tenants Source: CoStar Tenant Warehouse Lease Expiration Based on Total Square Footage of Tenants 2017 5.0% 2017 6.3% 2016 8.6% 2016 4.6% 2015 13.1% 2015 10.8% 2014 13.1% 2014 13.9% 2013 12.0% 2013 20.2% 2012 13.1% 2012 19.8% 0% 2% 4% 6% 8% 10% 12% 14% Percentage of Tenants 0% 5% 10% 15% 20% 25% Percentage of Tenants 2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 5

BROWARD COUNTY FIRST QUARTER 2011 Broward County Industrial Market INVENTORY & DEVELOPMENT Historical Deliveries 1982-2011 7.0 6.2 Deliveries 6.3 Average Delivered SF 6.0 5.1 5.0 4.4 4.4 4.4 Millions of SF 4.0 3.0 2.0 1.0 2.8 2.6 2.9 2.4 2.8 1.0 1.1 1.3 1.5 2.3 1.9 2.4 1.9 3.7 3.3 2.0 2.9 1.8 1.9 2.0 2.8 1.0 0.1 0.1 0.0 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 2009 2010 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 Coral Springs Ind 1 10,000 0 0.0% 28,479 10,000 West Sunrise Ind 0 0 0 0.0% 43,377 0 Central Broward Ind 0 0 0 0.0% 12,844 0 Northeast Broward Ind 0 0 0 0.0% 24,480 0 Outlying Broward Ind 0 0 0 0.0% 11,539 0 Pompano Beach Ind 0 0 0 0.0% 22,526 0 Southeast Broward Ind 0 0 0 0.0% 16,948 0 Southwest Broward Ind 0 0 0 0.0% 44,973 0 Totals 1 10,000 0 0.0% 20,634 10,000 Recent Deliveries Leased & Un-Leased SF in Deliveries Since 2007 3.0 Leased Un-Leased 2.5 Millions of SF 2.0 1.5 1.0 0.5 0.0 2007 2008 2009 2010 2011 6 THE COSTAR INDUSTRIAL REPORT 2011 COSTAR GROUP, INC.

Broward County Industrial Market INVENTORY & DEVELOPMENT FIRST QUARTER 2011 BROWARD COUNTY Historical Construction Starts & Deliveries Square Footage Per Quarter Starting and Completing Construction 1.2 1.1 Construction Starts Deliveries 1.0 Millions of SF 0.8 0.6 0.4 0.8 0.7 0.6 0.3 0.3 0.3 0.4 0.2 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2008 2008 2q 2008 2008 4q 2009 2009 2q 2009 2009 4q 2010 2010 2q 2010 2010 4q 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% $0.00 0 0 50,000 SF - 99,999 SF 0 0 0 0.0% $0.00 0 0 100,000 SF - 249,999 SF 0 0 0 0.0% $0.00 0 0 250,000 SF - 499,999 SF 0 0 0 0.0% $0.00 0 0 >= 500,000 SF 0 0 0 0.0% $0.00 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 Currently Under Construction By Building Type By Tenancy Type 0% 14% 27% 100% 86% 73% Multi Single Flex Warehouse Multi Single 2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 7

BROWARD COUNTY FIRST QUARTER 2011 Broward County Industrial Market INVENTORY & DEVELOPMENT 8 THE COSTAR INDUSTRIAL REPORT 2011 COSTAR GROUP, INC.

Broward County Industrial Market FIGURES AT A GLANCE FIRST QUARTER 2011 BROWARD COUNTY Flex Market Statistics First Quarter 2011 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Central Broward Ind 263 3,055,401 179,549 244,549 8.0% (502) 0 0 $8.16 Coral Springs Ind 44 1,497,852 144,018 144,018 9.6% (12,417) 0 0 $9.59 Northeast Broward Ind 63 1,457,656 158,079 158,079 10.8% 25,259 0 0 $10.00 Outlying Broward Ind 1 37,686 0 0 0.0% 0 0 0 $11.95 Pompano Beach Ind 133 3,058,331 465,279 477,095 15.6% (23,172) 0 0 $8.51 Southeast Broward Ind 452 4,597,738 247,241 247,241 5.4% 55,011 0 0 $11.13 Southwest Broward Ind 94 3,163,111 400,345 406,306 12.8% (18,498) 0 0 $10.11 West Sunrise Ind 68 1,964,305 395,912 395,912 20.2% (19,854) 0 0 $12.17 Totals 1,118 18,832,080 1,990,423 2,073,200 11.0% 5,827 0 0 $10.02 Warehouse Market Statistics First Quarter 2011 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Central Broward Ind 1,463 19,114,040 1,671,919 1,751,064 9.2% (113,224) 0 0 $6.88 Coral Springs Ind 206 5,621,779 503,794 503,794 9.0% (12,665) 0 10,000 $7.52 Northeast Broward Ind 466 11,492,308 1,407,378 1,469,150 12.8% (11,162) 0 0 $6.81 Outlying Broward Ind 4 20,009 8,866 8,866 44.3% 0 0 0 $0.00 Pompano Beach Ind 1,314 29,536,639 3,043,725 3,122,049 10.6% (360,899) 0 0 $7.28 Southeast Broward Ind 1,572 29,704,529 2,015,566 2,054,566 6.9% 103,709 0 0 $7.25 Southwest Broward Ind 279 13,611,768 1,188,650 1,317,842 9.7% (30,763) 0 0 $7.59 West Sunrise Ind 158 7,838,853 471,283 555,383 7.1% 6,358 0 0 $8.23 Totals 5,462 116,939,925 10,311,181 10,782,714 9.2% (418,646) 0 10,000 $7.27 Total Industrial Market Statistics First Quarter 2011 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Central Broward Ind 1,726 22,169,441 1,851,468 1,995,613 9.0% (113,726) 0 0 $7.03 Coral Springs Ind 250 7,119,631 647,812 647,812 9.1% (25,082) 0 10,000 $7.70 Northeast Broward Ind 529 12,949,964 1,565,457 1,627,229 12.6% 14,097 0 0 $7.20 Outlying Broward Ind 5 57,695 8,866 8,866 15.4% 0 0 0 $11.95 Pompano Beach Ind 1,447 32,594,970 3,509,004 3,599,144 11.0% (384,071) 0 0 $7.35 Southeast Broward Ind 2,024 34,302,267 2,262,807 2,301,807 6.7% 158,720 0 0 $7.61 Southwest Broward Ind 373 16,774,879 1,588,995 1,724,148 10.3% (49,261) 0 0 $8.08 West Sunrise Ind 226 9,803,158 867,195 951,295 9.7% (13,496) 0 0 $9.28 Totals 6,580 135,772,005 12,301,604 12,855,914 9.5% (412,819) 0 10,000 $7.59 2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 9

BROWARD COUNTY FIRST QUARTER 2011 Broward County Industrial Market FIGURES AT A GLANCE Flex Market Statistics First 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 1,118 18,832,080 1,990,423 2,073,200 11.0% 5,827 0 0 0 0 $10.02 2010 4q 1,118 18,832,080 1,996,250 2,079,027 11.0% 64,598 0 0 0 0 $10.18 2010 1,118 18,832,080 2,060,848 2,143,625 11.4% 47,875 0 0 0 0 $10.06 2010 2q 1,118 18,832,080 2,107,119 2,191,500 11.6% 36,363 0 0 0 0 $10.11 2010 1,118 18,832,080 2,127,232 2,227,863 11.8% 120,300 0 0 0 0 $10.33 2009 4q 1,118 18,832,080 2,249,782 2,348,163 12.5% (42,880) 1 4,000 0 0 $10.44 2009 1,117 18,828,080 2,200,802 2,301,283 12.2% (287,767) 1 4,000 1 4,000 $11.16 2009 2q 1,116 18,824,080 1,934,219 2,009,516 10.7% (64,583) 1 10,000 2 8,000 $11.22 2009 1,115 18,814,080 1,853,587 1,934,933 10.3% (209,337) 1 4,000 3 18,000 $11.71 2008 1,114 18,810,080 1,646,596 1,721,596 9.2% (116,784) 3 158,187 3 18,000 $12.15 2007 1,111 18,651,893 1,398,050 1,446,625 7.8% (229,093) 4 189,819 3 107,010 $12.54 2006 1,107 18,462,074 992,233 1,027,713 5.6% 532,881 5 201,958 2 125,445 $10.42 2005 1,103 18,336,406 1,349,482 1,434,926 7.8% 495,214 12 674,856 4 135,958 $9.61 2004 1,091 17,661,550 1,234,922 1,255,284 7.1% 741,865 18 591,517 10 470,896 $9.93 2003 1,073 17,070,033 1,380,030 1,405,632 8.2% 203,431 8 233,995 11 323,197 $9.94 2002 1,065 16,836,038 1,231,376 1,375,068 8.2% 325,360 11 313,285 11 356,943 $10.46 Quoted Warehouse Market Statistics First Quarter 2011 Existing Inventory Vacancy Net Deliveries Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates 2011 5,462 116,939,925 10,311,181 10,782,714 9.2% (418,646) 0 0 1 10,000 $7.27 2010 4q 5,462 116,939,925 9,894,762 10,364,068 8.9% 341,811 1 69,956 1 10,000 $7.35 2010 5,461 116,869,969 10,202,351 10,635,923 9.1% 46,544 0 0 2 79,956 $7.35 2010 2q 5,461 116,869,969 10,234,395 10,682,467 9.1% 286,007 1 69,064 2 79,956 $7.47 2010 5,460 116,800,905 10,296,806 10,899,410 9.3% 314,064 1 6,057 3 149,020 $7.52 2009 4q 5,459 116,794,848 10,586,201 11,207,417 9.6% (321,744) 2 34,800 3 85,121 $7.58 2009 5,457 116,760,048 10,256,531 10,850,873 9.3% (751,076) 8 384,470 5 119,921 $7.90 2009 2q 5,449 116,375,578 9,185,360 9,715,327 8.3% (756,519) 5 315,087 13 504,391 $8.07 2009 5,444 116,060,491 8,137,340 8,643,721 7.4% (694,033) 3 47,155 15 719,157 $8.31 2008 5,442 116,017,836 7,523,348 7,907,033 6.8% 15,511 41 2,529,323 14 660,724 $8.30 2007 5,401 113,488,513 4,915,809 5,393,221 4.8% 267,147 37 1,775,001 37 2,009,389 $8.65 2006 5,365 111,728,512 3,793,179 3,900,367 3.5% 1,000,937 33 1,586,157 27 1,509,029 $8.18 2005 5,333 110,149,355 3,265,317 3,322,147 3.0% 2,682,969 24 923,215 29 1,441,691 $7.54 2004 5,309 109,226,140 4,879,943 5,081,901 4.7% 4,424,260 44 2,226,806 22 947,935 $6.90 2003 5,266 107,061,666 7,210,175 7,341,687 6.9% 2,158,116 35 1,724,938 28 1,309,597 $6.85 2002 5,231 105,336,728 7,248,048 7,774,865 7.4% 2,066,245 40 2,596,948 28 1,747,106 $6.60 UC Inventory Quoted Total Industrial Market Statistics First 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 6,580 135,772,005 12,301,604 12,855,914 9.5% (412,819) 0 0 1 10,000 $7.59 2010 4q 6,580 135,772,005 11,891,012 12,443,095 9.2% 406,409 1 69,956 1 10,000 $7.70 2010 6,579 135,702,049 12,263,199 12,779,548 9.4% 94,419 0 0 2 79,956 $7.69 2010 2q 6,579 135,702,049 12,341,514 12,873,967 9.5% 322,370 1 69,064 2 79,956 $7.81 2010 6,578 135,632,985 12,424,038 13,127,273 9.7% 434,364 1 6,057 3 149,020 $7.89 2009 4q 6,577 135,626,928 12,835,983 13,555,580 10.0% (364,624) 3 38,800 3 85,121 $7.95 2009 6,574 135,588,128 12,457,333 13,152,156 9.7% (1,038,843) 9 388,470 6 123,921 $8.28 2009 2q 6,565 135,199,658 11,119,579 11,724,843 8.7% (821,102) 6 325,087 15 512,391 $8.42 2009 6,559 134,874,571 9,990,927 10,578,654 7.8% (903,370) 4 51,155 18 737,157 $8.71 2008 6,556 134,827,916 9,169,944 9,628,629 7.1% (101,273) 44 2,687,510 17 678,724 $8.76 2007 6,512 132,140,406 6,313,859 6,839,846 5.2% 38,054 41 1,964,820 40 2,116,399 $9.21 2006 6,472 130,190,586 4,785,412 4,928,080 3.8% 1,533,818 38 1,788,115 29 1,634,474 $8.60 2005 6,436 128,485,761 4,614,799 4,757,073 3.7% 3,178,183 36 1,598,071 33 1,577,649 $8.01 2004 6,400 126,887,690 6,114,865 6,337,185 5.0% 5,166,125 62 2,818,323 32 1,418,831 $7.50 2003 6,339 124,131,699 8,590,205 8,747,319 7.0% 2,361,547 43 1,958,933 39 1,632,794 $7.41 2002 6,296 122,172,766 8,479,424 9,149,933 7.5% 2,391,605 51 2,910,233 39 2,104,049 $6.85 Quoted 10 THE COSTAR INDUSTRIAL REPORT 2011 COSTAR GROUP, INC.

Broward County Industrial Market LEASING ACTIVITY FIRST QUARTER 2011 BROWARD COUNTY Historical Rental Rates Based on Quoted Rental Rates $12.00 Flex Warehouse Total Market $10.00 Dollars/SF/Year $8.00 $6.00 $4.00 $2.00 $0.00 2009 2009 4q 2010 2010 2q 2010 2010 4q 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 Broward County United States Broward County United States 4% 3% 16% 14% 84% 86% 96% 97% 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* $9.00 Broward County United States 0.6 0.6 $8.00 0.5 Dollars/SF/Year $7.00 $6.00 $5.00 $4.00 $3.00 Millions 0.4 0.3 0.2 $2.00 $1.00 $0.00 2009 2009 4q 2010 2010 2q 2010 2010 4q 2011 0.1 0.0 0.1 0.0 0.0 0.0 0.0 2011 2q 2011 2011 4q 2012 2012 2q 2012 * Includes Under Construction Space 2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 11

BROWARD COUNTY FIRST QUARTER 2011 Broward County Industrial Market LEASING ACTIVITY 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 Senaca North - Building M Southeast Broward Ind 66,095 1st Gregg Appliances N/A Cushman & Wakefield, Inc. 2 Port 95 Commerce Park - Building 4 Southeast Broward Ind 65,669 1st Challenge Warehousing Direct Deal The Kelsey Group, Inc. 3 Premier Turnpike Park - Bldg 1 Pompano Beach Ind 56,354 1st Argo Turboserve Corporation N/A Duke Realty 4 MPC 10 Southwest Broward Ind 48,352 1st Wal-Mart N/A Transwestern 5 MPC 4B Southwest Broward Ind 40,785 1st Neoptx, LLC Direct Deal Sunbeam Properties, Inc. 6 Senaca North - Building M Southeast Broward Ind 25,400 1st Gemaire Distributors N/A Cushman & Wakefield, Inc. 7 Center Port #100 Pompano Beach Ind 25,321 1st N/A N/A Cushman & Wakefield, Inc. 8 Quiet Waters Business Pk - Bldg 2 Northeast Broward Ind 24,000 1st Prestige Auto Cushman & Wakefield, Inc. CB Richard Ellis 9 Center Port #300 Pompano Beach Ind 21,420 1st N/A N/A Cushman & Wakefield, Inc. 10 3580 W Prospect Rd* Central Broward Ind 18,884 1st Global Response Direct Deal 777 Properties, Inc. 11 3420 NW 53rd St* Central Broward Ind 15,920 1st All Moving Services, Inc. Direct Deal Berger Commercial Realty Corp. 12 Broward Int l Comm Center - 100 Southeast Broward Ind 15,600 1st Eco Marine ComReal Fort Lauderdale Cushman & Wakefield, Inc. 13 International Warehouses - Bldg 3 Central Broward Ind 15,020 1st N/A N/A Sperry Van Ness Commercial Realty 14 MPC 26A Southwest Broward Ind 14,017 1st Jpay, Inc. ComReal Fort Lauderdale Sunbeam Properties, Inc. 15 Quiet Waters Business Pk - Bldg 6 Northeast Broward Ind 10,680 1st It s Sugar N/A CB Richard Ellis 16 International Warehouses - Bldg 2 Central Broward Ind 10,007 1st N/A N/A Sperry Van Ness Commercial Realty 17 5400 NW 35th Ter Central Broward Ind 10,000 1st N/A N/A Jones Lang LaSalle 18 International Warehouses - Bldg 1 Central Broward Ind 9,800 1st N/A N/A Sperry Van Ness Commercial Realty 19 Designer Place II Southeast Broward Ind 9,600 1st L-3 Communications CB Richard Ellis CB Richard Ellis 20 Schaefer Industrial Park - West Bldg Southeast Broward Ind 9,050 1st N/A N/A Berger Commercial Realty Corp. 21 5610 NW 12th Ave Central Broward Ind 8,600 1st N/A N/A Jones Lang LaSalle 22 Sawgrass Business Center - Bldg 2 West Sunrise Ind 8,427 1st Iq Formulations N/A Industrial Properties, LTD 23 Courtyard Distribution Center 2 West Sunrise Ind 8,000 1st N/A N/A Total Real Estate Consultants Inc 24 4100 Ravenswood Rd Southeast Broward Ind 8,000 1st N/A Direct Deal Richard Bulow 25 900 NW 11th Ave Central Broward Ind 7,902 1st N/A N/A Rauch Realty Group 26 5600 NW 12th Ave Central Broward Ind 7,800 1st N/A N/A Jones Lang LaSalle 27 Windolph Plaza Northeast Broward Ind 7,400 1st View TEQ Coldwell Banker Commercial NRT The Fitzgerald Group 28 The Annex Building Southeast Broward Ind 7,000 1st CTE Watch Co. Direct Deal CB Richard Ellis 29 MPC 2A Southwest Broward Ind 6,600 1st Rocksolid Granit USA, Inc. Grubb & Ellis Sunbeam Properties, Inc. 30 Sample Distribution Center Pompano Beach Ind 6,500 1st N/A N/A Jones Lang LaSalle 31 Enterprise Commerce Ctr - Bldg 2 Northeast Broward Ind 6,461 1st ATA Black Belt Academy of Deerfield Uniweb Commercial, Inc. Brenner Real Estate Group 32 Palm Crossings South* Central Broward Ind 6,365 1st Broward Infusion Group N/A N/A 33 Enterprise Commerce Ctr - Bldg 6 Northeast Broward Ind 6,160 1st Capital Scrap Metal LLC Direct Deal Brenner Real Estate Group 34 Lauderhill Commerce Park - Bldg E Lincoln Ind Central Broward Ind 6,100 1st N/A N/A Sawgrass Commerce Realty Inc 35 Flamingo Park of Commerce - Bldg 8 (Phase 2) Southwest Broward Ind 5,790 1st N/A N/A Montalbano Commercial Realty 36 Windolph Plaza Northeast Broward Ind 5,743 1st View TEQ Coldwell Banker Commercial NRT The Fitzgerald Group 37 Pembroke Commerce Center Southeast Broward Ind 5,600 1st N/A Direct Deal Sara David Realty, Inc. 38 3601 NE 5th Ave Central Broward Ind 5,500 1st N/A N/A Mack Industrial Inc. 39 3106 N Andrews Avenue Ext Pompano Beach Ind 5,360 1st N/A N/A Jones Lang LaSalle 40 Miramar Executive Suites Southwest Broward Ind 5,300 1st N/A N/A NATIONAL Business Condo, LLC * Renewal 12 THE COSTAR INDUSTRIAL REPORT 2011 COSTAR GROUP, INC.

Broward County Industrial Market SALES ACTIVITY FIRST QUARTER 2011 BROWARD COUNTY The Optimist Sales Index Average of Two Highest Price/SF's and Two Lowest Cap Rates Per Quarter 12.0% Cap Rate Price/SF $180 Cap Rate Percentage 10.0% 8.0% 6.0% 4.0% 2.0% $160 $140 $120 $100 $80 $60 $40 $20 Dollars/SF 0.0% 2008 2008 2q 2008 2008 4q 2009 2009 2q 2009 2009 4q 2010 2010 2q 2010 2010 4q $0 Source: CoStar COMPS Sales Volume & Price Sales Analysis by Building Size Based on Industrial Building Sales of 15,000 SF and Larger Based on Industrial Bldg Sales From Jan. 2010 - Dec. 2010 Sales Volume Price/SF Bldg Size # RBA $ Volume Price/SF Cap Rate $300 $140 $250 $120 < 25,000 SF 48 546,962 $ 50,074,096 $ 91.55 8.84% Millions of Sales Volume Dollars $200 $150 $100 $50 $100 $80 $60 $40 $20 Price/SF 25K-99K SF 19 726,687 $ 50,267,759 $ 69.17 7.80% 100K-249K SF 5 634,805 $ 30,065,000 $ 47.36 9.53% $0 2007 2007 2008 2008 2009 2009 2010 2010 $0 >250K SF 2 1,088,768 $ 96,000,000 $ 88.17 7.60% 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 Broward County US 12.0% Broward County US $120 10.0% Dollars per SF $100 $80 $60 $40 Cap Rate Percentage 8.0% 6.0% 4.0% $20 2.0% $0 2007 2007 2008 2008 2009 2009 2010 2010 0.0% 2007 2007 2008 2008 2009 2009 2010 2010 Source: CoStar COMPS Source: CoStar COMPS 2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 13

BROWARD COUNTY FIRST QUARTER 2011 Broward County Industrial Market SALES ACTIVITY 14 THE COSTAR INDUSTRIAL REPORT 2011 COSTAR GROUP, INC.

Broward County Industrial Market SALES ACTIVITY FIRST QUARTER 2011 BROWARD COUNTY Select Land Sales Based on Industrial Zoned Land Sales Occurring From Jan. 2010 - March 2011 4100 Coral Ridge Dr, Coral Springs 1675 Banks Rd, Margate 6700 NW 15th Ave, Fort Lauderdale Sale Price: $658,000 Sale Price: $540,000 Sale Price: $500,000 Acres: 1.14 Acres: 1.57 Acres: 2.00 Price/SF: $13.25 Price/SF: $7.91 Price/SF: $5.74 Closing Date: 02/15/2010 Closing Date: 05/19/2010 Closing Date: 05/07/2010 Zoning: IRD Zoning: M-1A Zoning: I Intended Use: Office Intended Use: Hold for Development Intended Use: Industrial Park Buyer: Ron Livni Buyer: Margate Community Redevelopment AgenBuyer: Commercial Printers, Inc. Seller: Amera Barron Leasing, Inc. Seller: Terrell Duke Seller: Cinco Holding Group LLC Source: CoStar COMPS 2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 15

BROWARD COUNTY FIRST QUARTER 2011 Broward County Industrial Market C E N T R A L B R O W A R D M A R K E T MARKET HIGHLIGHTS - FLEX & WAREHOUSE Deliveries, Absorption & Vacancy 0.200 0.100 Delivered SF Absorption SF Vacancy 10.0% 9.0% 8.0% 0.000 (0.100) (0.200) (0.300) 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% Percent Vacant (0.400) 2008 2008 2q 2008 2008 4q 2009 2009 2q 2009 2009 4q 2010 2010 2q 2010 2010 4q 2011 0.0% Vacant Space Quoted Rental Rates 2.10 2.05 2.00 1.95 1.90 1.85 1.80 1.75 1.70 1.65 1.60 1.55 Direct SF Sublet SF 2010 2010 2q 2010 2010 4q 2011 Dollars/SF/Year $7.40 $7.35 $7.30 $7.25 $7.20 $7.15 $7.10 $7.05 $7.00 $6.95 $6.90 $6.85 2010 2010 2q 2010 2010 4q 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 1,726 22,169,441 1,995,613 9.0% (113,726) 0 0 0 0 $7.03 2010 4q 1,726 22,169,441 1,881,887 8.5% 69,513 0 0 0 0 $7.08 2010 1,726 22,169,441 1,951,400 8.8% 55,832 0 0 0 0 $7.14 2010 2q 1,726 22,169,441 2,007,232 9.1% 21,758 0 0 0 0 $7.26 2010 1,726 22,169,441 2,028,990 9.2% 20,212 0 0 0 0 $7.35 2009 4q 1,726 22,169,441 2,049,202 9.2% (113,272) 1 4,000 0 0 $7.28 2009 1,725 22,165,441 1,931,930 8.7% (33,685) 1 4,000 1 4,000 $8.03 2009 2q 1,724 22,161,441 1,894,245 8.5% (44,021) 0 0 2 8,000 $8.06 2009 1,724 22,161,441 1,850,224 8.3% (342,400) 1 4,000 2 8,000 $8.31 2008 4q 1,723 22,157,441 1,503,824 6.8% (244,628) 0 0 2 8,000 $8.60 2008 1,723 22,157,441 1,259,196 5.7% 53,842 0 0 2 8,000 $8.74 2008 2q 1,723 22,157,441 1,313,038 5.9% 129,605 1 89,950 2 8,000 $8.63 2008 1,722 22,067,491 1,352,693 6.1% (245,744) 0 0 3 97,950 $8.33 2007 4q 1,722 22,067,491 1,106,949 5.0% (81,545) 0 0 2 93,950 $8.71 2007 1,722 22,067,491 1,025,404 4.6% (25,972) 0 0 1 89,950 $8.77 2007 2q 1,722 22,067,491 999,432 4.5% 102,471 0 0 0 0 $8.71 16 THE COSTAR INDUSTRIAL REPORT 2011 COSTAR GROUP, INC.

Broward County Industrial Market C O R A L S P R I N G S M A R K E T MARKET HIGHLIGHTS - FLEX & WAREHOUSE FIRST QUARTER 2011 BROWARD COUNTY Deliveries, Absorption & Vacancy 0.250 Delivered SF Absorption SF Vacancy 14.0% 0.200 12.0% 0.150 0.100 0.050 0.000 10.0% 8.0% 6.0% 4.0% Percent Vacant (0.050) 2.0% (0.100) 2008 2008 2q 2008 2008 4q 2009 2009 2q 2009 2009 4q 2010 2010 2q 2010 2010 4q 2011 0.0% Vacant Space Quoted Rental Rates 0.90 Direct SF Sublet SF $9.50 0.80 0.70 $9.00 0.60 0.50 0.40 0.30 Dollars/SF/Year $8.50 $8.00 0.20 $7.50 0.10 0.00 2010 2010 2q 2010 2010 4q 2011 $7.00 2010 2010 2q 2010 2010 4q 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 250 7,119,631 647,812 9.1% (25,082) 0 0 1 10,000 $7.70 2010 4q 250 7,119,631 622,730 8.7% 74,692 0 0 1 10,000 $8.33 2010 250 7,119,631 697,422 9.8% 13,648 0 0 1 10,000 $8.59 2010 2q 250 7,119,631 711,070 10.0% 73,799 0 0 1 10,000 $8.99 2010 250 7,119,631 784,869 11.0% 57,165 0 0 1 10,000 $8.53 2009 4q 250 7,119,631 842,034 11.8% 17,202 0 0 1 10,000 $8.81 2009 250 7,119,631 859,236 12.1% (36,852) 0 0 1 10,000 $9.04 2009 2q 250 7,119,631 822,384 11.6% (55,531) 2 199,510 1 10,000 $9.76 2009 248 6,920,121 567,343 8.2% (53,153) 0 0 3 209,510 $9.86 2008 4q 248 6,920,121 514,190 7.4% (13,558) 0 0 2 199,510 $10.06 2008 248 6,920,121 500,632 7.2% (30,994) 0 0 2 199,510 $10.00 2008 2q 248 6,920,121 469,638 6.8% (61,189) 0 0 2 199,510 $10.00 2008 248 6,920,121 408,449 5.9% 31,953 3 47,614 1 99,755 $10.64 2007 4q 245 6,872,507 392,788 5.7% 57,562 6 138,030 3 47,614 $10.61 2007 239 6,734,477 312,320 4.6% 28,376 1 37,000 8 176,144 $10.27 2007 2q 238 6,697,477 303,696 4.5% (47,807) 1 52,818 9 213,144 $10.58 2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 17