2015 RCA Industrial Report

INDUSTRIAL

• The industrial property sector posted 54% yoy growth in volume on sales of $77b. This year is now the high water mark for the industrial sector beating the $59.6b level set in 2007 by a wide margin. There are two stories that drove these volume gains, portfolio and entity-level sales and foreign capital flows.

• The sale of individual industrial assets grew in 2015 but the growth was only 7% yoy on sales of $38b. This fig-ure is the same as the previous high water mark for the sale of individual industrial assets set back in 2007. The majority of the growth for 2015 came from the $38b in deal volume tied up in portfolio and entity-level deals.

• Foreign buyers were behind $27.4b in transactions, a record year for foreign interest in the industrial sector by any stretch. In the previous 14 years, foreign inves-tors accounted for only about 4% of all deal activity in the industrial sector. The sector just was not sexy enough and never looked good on the cover of a memo to an investment board. These investors were behind 36% of all deal volume in 2015 however. (more on this topic on page 5)

• What changed with the industrial sector was a growing understanding of the yield opportunity presented by the sector. High quality CBD office assets for instance were typically the go-to investment for foreign investors in the past but cap rates for these assets hit a floor in the 4% range. Cap rates for the highest quality warehouse assets by contrast still show ongoing compression and are in the low 5% range.

Industrial 2015 Year in Review

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Industrial Annual Sales Volume and Pricing Trends

*RCA CPPI starts at 100 in December 2000; 2015 RCA CPPI results are preliminary

Industrial Transaction Summary ($B)Yr Individual Portfolio Entity Total‘12 $25.8 $11.3 $0.2 $37.4‘13 $29.2 $10.7 $6.4 $46.3‘14 $35.7 $11.1 $3.1 $49.9‘15 $38.3 $18.1 $20.1 $76.5

YEAR IN REVIEW 2015• Year in Review � � � � � � 1• Sector Trends � � � � � � � �2• Market Tiers � � � � � � � �3• Most Active Markets � � � �4• Cross Border Capital � � �5• Top Industrial Transactions �6

• Top Buyers & Sellers � � � �7• Market Table � � � � � � 8-9• Selected Transactions � 10-11• Top Brokers � � � � � � � � 12• Notes & Methodology � � 13

1©2016 Real Capital Analytics, Inc. All rights reserved. Data believed to be accurate but not guaranteed; subject to future revision; based on properties & portfolios $2.5m and greater.

2015 YEAR IN REVIEW P U B L I S H E D J A N U A R Y 2 0 1 6

Quarterly Volume & Pricing Trends

Sector Trends

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Flex Warehouse All Industrial

Transaction Volume

Year-Over-Year Change

Cap Rates

billions billions billions

• Deal volume for most property sectors experienced a pronounced slowdown and even periods of falling growth in volume in H2’15. The industrial sector bucks this trend with high double-digit growth in both H1’15 and H2’15: 66% yoy and 43% yoy growth, respectively.

• There was no quarter in 2015 where growth in volume slipped nor was there any quarter in which portfolio and entity level transactions grew at anything less than 50% from a year earlier. The sale of individual assets did post a 2% decline in volume in Q2’15 but that seems more an anomaly. The real slowdown for most property sectors in 2015 came into Q3’15 when financial market turmoil began to impact CMBS financing.

• Cap rates compressed 30 bps from a year earlier to hit 6.7% in Q4’15. Some of this decline is likely driven by noise with a sudden 60 bps drop in flex cap rates from Q3’15. The warehouse market constitutes nearly 80% of all deal volume and here cap rates were down only 10 bps from a year earlier to hit 6.8%.

• There is a bit of a flattening in industrial cap rates and prices are starting to moderate. Initial estimates of the Moody’s/RCA CPPITM suggest that prices increased 6% yoy, down from an average 15% per year in the previous two years.

2 ©2016 Real Capital Analytics, Inc. All rights reserved. Data believed to be accurate but not guaranteed; subject to future revision; based on properties & portfolios $2.5m and greater.

2015 YEAR IN REVIEW

INDUSTRIAL

Volume RCA CPPI Price Averages

Sector/Region $M YOY Change #Props YOY

ChangeYOY *

ChangePeak**to Now $/sf Cap

RateYOY

Change (bps)

US Industrial $76,536 54% 7,397 33% 6% 3% $76 6.8% -29US Flex $17,176 28% 1,671 25% $107 7.0% -30US Warehouse $59,359 63% 5,726 36% $68 6.7% -29

6-Major-Metro Industrial $31,050 57% 2,698 38% -2% 8% $117 6.0% -56Non-Major-Metro Industrial $45,485 51% 4,699 31% 12% -1% $58 7.4% -5

Single-tenant Industrial $21,198 28% 1,909 28% $73 7.0% -14

US Flex $17,176 28% 1,671 25% $107 7.0% -306-Major-Metro Flex $8,029 26% 659 27% $146 6.2% -38Non-Major-Metro Flex $9,148 30% 1,012 23% $84 7.6% -7

US Warehouse $59,359 63% 5,726 36% $68 6.7% -296 Major Metro Warehouse $23,022 71% 2,039 42% $108 5.8% -68Non-Major-Metro Warehouse $36,338 58% 3,687 33% $52 7.3% -3

US Industrial $76,536 54% 7,397 33% 6% 3% $76 6.8% -29Northeast/Mid-Atlantic $15,181 59% 1,291 39% $85 6.9% -20Southeast $12,285 41% 1,273 40% $48 7.5% 2Midwest $10,999 25% 1,300 25% $49 7.8% 42Southwest $10,945 47% 1,197 32% $74 7.5% -7West $26,948 88% 2,312 51% $120 5.9% -59

US industrial $76,536 54% 7,397 33% 6% 3% $76 6.8% -29US Office $145,849 16% 5,800 13% 14% 18% $247 6.8% -10US Retail $87,643 1% 7,211 -12% 13% -1% $218 6.5% -23US Apartment $149,990 32% 7,972 16% 13% 38% 5.9% -18US Hotel $49,383 42% 2,341 26% 16% 4% 8.3% 19

• Normally this framework of the 6 Major Metros ver-sus other markets does not work as well for the indus-trial sector owing to the importance of land costs and location in the decision to situate industrial facilities. Eastern PA for instance is highly desirable for logistics operations given the low costs and proximity to dense population centers of the Northeast.

• This said, the spread between industrial cap rates for the 6 Major Metros and the secondary markets con-tinues to grow. This spread had maxed out at only about 80 bps in 2007 and 2008; and this was the spread exhibited by the end of 2014, but it grew to 130 bps by December 2015.

• Industrial cap rates in the 6 Major Metros have fallen 56 bps over the last year while flattening in the Secondary and Tertiary markets.

Summary of Market Indicators for 2015

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All Industrial Cap Rate

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Cap Rates by Market Tier

* CPPI Year-over-year changes measure price movement between Q4’13 and Q4’14; ** Peak defined as Q4’07. 2014 RCA CPPI results are preliminary.


2015 YEAR IN REVIEW

2009 2010 2011 2012 2013 2014 2015 Market 2015 Sales Volume ($M) YOY Change

1 1 1 1 1 1 1 Los Angeles 5,659,511,727$ 64%2 4 2 4 3 2 2 Chicago 4,008,131,967$ 25%7 2 3 3 2 3 3 Dallas 3,505,945,792$ 42%3 3 6 7 5 5 4 Inland Empire 3,489,586,775$ 80%9 6 4 10 4 8 5 No NJ 3,394,963,750$ 106%8 5 8 8 11 4 6 Atlanta 2,641,943,989$ 15%6 16 11 12 10 18 7 Seattle 2,447,753,993$ 202%

13 14 7 2 6 6 8 San Jose 2,286,093,747$ 31%5 7 9 17 16 16 9 East Bay 2,163,545,489$ 144%4 10 13 5 9 9 10 Orange Co 2,110,022,289$ 54%

17 11 12 11 8 11 11 Houston 1,937,330,669$ 71%14 9 15 13 12 13 12 Phoenix 1,790,049,267$ 77%12 8 14 16 15 10 13 San Diego 1,735,820,082$ 36%10 13 10 6 13 12 14 Boston 1,734,014,327$ 63%11 19 18 9 7 7 15 NYC Boroughs 1,654,654,124$ -2%29 15 5 28 20 30 16 San Francisco 1,316,330,023$ 193%22 29 31 34 44 32 17 Portland 1,206,177,807$ 203%75 41 45 65 14 51 18 Reno 1,188,227,776$ 514%39 21 26 27 18 17 19 Indianapolis 1,152,259,227$ 39%33 22 39 20 32 50 20 Memphis 1,094,851,687$ 436%42 35 40 31 41 22 21 Austin 1,030,887,648$ 55%25 20 23 14 17 23 22 Miami 988,227,769$ 69%16 25 19 22 25 14 23 Denver 963,373,358$ -2%37 31 24 15 26 24 24 Baltimore 955,943,942$ 75%36 30 21 33 30 19 25 Charlotte 939,585,102$ 29%85 24 57 66 43 59 26 Harrisburg/Central PA 935,891,655$ 509%20 36 22 21 24 15 27 Minneapolis 931,470,170$ 4%51 12 35 41 29 39 28 Broward 910,239,504$ 187%19 28 20 24 46 26 29 Columbus 903,109,927$ 84%59 42 30 49 22 25 30 Nashville 773,813,012$ 54%21 17 32 18 28 29 31 Central CA 701,619,927$ 55%35 34 16 43 34 35 32 Las Vegas 655,435,891$ 91%28 45 50 23 31 33 33 Philadelphia 633,491,660$ 66%23 49 42 39 33 27 34 Orlando 624,362,073$ 34%67 38 33 35 37 36 35 Cincinnati 615,473,479$ 81%54 47 36 25 21 38 36 St Louis 588,358,113$ 82%32 23 29 29 23 21 37 DC MD burbs 586,480,516$ -13%15 26 25 37 19 42 38 DC VA burbs 568,885,424$ 98%55 56 38 69 62 52 39 Louisville 563,442,004$ 212%24 39 48 19 39 60 40 Sacramento 513,374,623$ 240%

Rankings

$5,660$4,008

$3,506$3,490$3,395

$2,642$2,448$2,286$2,164$2,110$1,937$1,790$1,736$1,734$1,655

$1,316$1,206$1,188$1,152$1,095$1,031$988$963$956$940$936$931$910$903$774$702$655$633$624$615$588$586$569$563$513

64%25%42%

80%106%

15%202%

31%144%

54%71%77%

36%63%

-2%193%203%

39%

55%69%

-2%75%

29%

4%187%

84%54%55%

91%66%

34%81%82%

-13%98%

212%240%

514%

436%

509%

Top 40 Industrial Markets 2015

Most Active Markets of 2014• Large industrial portfolios tend to spread holdings out

to markets across the US. With the mega-deals tak-ing on such importance in deal activity for 2015, one would expect all markets to come in with positive deal growth for the year but there are three that exhibited declines.

• Denver saw deal volume fall 2% and slipped from the #14 slot to the #23 slot. This said, Denver had more than usual activity in 2014, normally it would rank some-where in the 20 range. The DC MD Suburbs saw a 13% decline in volume but it is a small number, besides, the

distribution focus for the region is a little further north into the Baltimore market which did post a 75% yoy gain in volume.

• The NYC Boroughs posted a 2% yoy decline in volume though this story is not likely one focused on the indus-trial sector anyway. This collection of markets is heav-ily weighted to the hipster-haven of Brooklyn which has been in the middle of an apartment construction boom. Many industrial purchases here were focused on rede-velopment to housing and declining volume may sug-gest a peak in conversions.


2015 YEAR IN REVIEW

INDUSTRIAL


2015 YEAR IN REVIEW

Cross Border Capital Summary

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Canada Europe Middle EastAsia Australia Latin America

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Canada

Norway

United Arab Emirates

China

Switzerland

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Bahrain

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Top 10 Cross Border Industrial Investors ($B)

Market Acq (in $M)

#Props

% of Total Acq

1 Tertiary West $2,836.6 358 73%2 No NJ $2,638.0 95 59%3 Chicago $2,454.4 219 48%4 Tertiary Mid-Atlantic $2,413.4 127 67%5 Dallas $2,218.0 249 54%6 Atlanta $2,207.3 173 62%7 Los Angeles $1,896.2 107 38%8 Inland Empire $1,878.4 74 48%9 Seattle $1,593.5 42 50%10 East Bay $1,554.7 71 59%11 Orange Co $1,512.0 79 65%12 Tertiary Southeast $1,326.5 114 46%13 Austin $1,093.1 186 74%14 Memphis $1,082.5 68 72%15 Phoenix $919.6 80 47%16 Portland $888.7 59 65%17 Columbus $869.8 47 65%18 San Diego $859.9 30 46%19 Indianapolis $744.5 62 57%20 Baltimore $715.9 58 60%

• Deal activity in which foreign investors are active grew at an exponential pace in 2015: 1115% growth for the year.

• Activity from the Asian markets was led out of Singapore with a JV between GIC (Government of Singapore) and Global Logistics Properties kicking off the year. In total there were five multi-billion portfolios transacted for the year with foreign investors involved in the deals. Portions of the first deal of the year actually sold downstream more than two quarters after the initial transaction.

• The real question the market faces is not what drove for-eign capital flows in 2015 so much as whether it can con-tinue. This question is both a demand and a supply issue. On the demand side, despite challenges faced by some of the investors dependent on petro wealth, Preqin in their Dry Powder Report suggests that there is still a signifi-cant amount of sidelined capital waiting to be deployed.

• On supply, there is a highly disaggregated ownership of US industrial properties. Foreign investors, even if they like the US industrial story, cannot access the market easily as they do not have the time to buy buildings one or two at a time. As long as the demand holds, there will continue to be a business for investors consolidating individual assets to sell in portfolios.

Cross Border Capital by Region of Origin: US Industrial Investment

Top Countries for Cross Border Industrial Investment ($B)

Top Market Destinations for Cross Border Industrial Investment

INDUSTRIAL

Top 25 Property SalesTransaction Location Inv Vol

($M)*SF PPSF Buyer

1 Menlo Science & Technology Park Menlo Park, CA $395.0 996,272 $396 Facebook

2 Ford Motor Company Service Center New York, NY $255.5 464,000 $551 Pershing Square Capital Management JV Georgetown Company

3 Tukwila Business Park Seattle, WA $202.8 1,243,601 $163 Clarion Partners

4 Preferred Freezer Services Richland, WA $176.8 456,000 $388 Lexington Realty

5 200 Cambridge Park Drive Cambridge, MA $165.5 221,676 $747 Morgan Stanley

6 Pfizer Pearl River Campus Pearl River, NY n/a 2,000,000 n/a Industrial Realty Group

7 The Crossings @ 880 Fremont, CA $135.0 690,796 $195 BlackRock

8 Canyon Park Business Center Bothell, WA $130.6 717,702 $182 NorthStar Real Estate Income II JV SteelWave

9 6th & Alameda Wholesale Distribution Center Los Angeles, CA $130.0 287,376 $452 Suncal Companies

10 Lockheed Martin Building Sunnyvale, CA $129.4 592,124 $219 Jay Paul Co

11 V Street Industrial Park Washington, DC $115.5 820,000 $141 Terreno Realty

12 fmr Praecis Pharmaceuticals HQ Waltham, MA $104.2 182,000 $573 King Street Properties JV Carlyle Group

13 The Brickyard Los Angeles, CA $102.0 1,007,000 $101 Clarion Partners

14 Restoration Hardware Patterson, CA $98.9 1,500,000 $66 GC Essential Asset REIT

15 Amazon Distribution Center Middletown, DE n/a 1,015,740 n/a Patrick Maloney

16 Amazon Fulfillment Center Patterson, CA $91.3 1,015,740 $90 PNC Realty Investors Inc

17 Port Crossing Commerce Center B5 La Porte, TX $90.0 921,196 $98 Liberty Property Trust

18 Nissan North America Canton, MS $89.3 1,466,000 $61 Lexington Realty

19 Northern Virginia Industrial Park Lorton, VA $86.5 818,994 $106 MRP Realty JV JP Morgan

20 Flextronics Milpitas, CA $84.5 499,206 $169 Prologis

21 Turnberry Lakes Roselle, IL $83.5 710,523 $118 DEXUS

22 Gwinnett Corporate Center Norcross, GA $83.2 1,200,000 $69 Westmount Realty Capital JV Quilvest

23 Park 81 Shippensburg, PA $83.0 1,495,720 $55 CBRE Global Investors

24 Brooklyn Whale Building Brooklyn, NY $82.5 367,800 $224 Madison Realty Capital

25 Pioneer 360 Business Center Arlington, TX n/a 1,163,470 n/a LaSalle Investment

Top 10 Portfolio SalesTransaction Location Inv Vol

($M)*SF PPSF Buyer

1 Indcor Industrial Buyout 2015 Multiple, United States $8,042.9† 118,371,928 $68 GIC (Govt of Singapore) JV Global Logistic Properties

2 KTR Buyout 2015 Multiple, United States $5,720.6† n/a n/a Prologis JV Norges Bank (NBIM)

3 IIT Buyout 2015 Multiple, United States $4,550.0 57,840,940 $79 Global Logistic Properties

4 GLP US Income Partners I Portfolio 2015 Multiple, United States $3,645.0† 118,035,038 $69 CPP Investment Board JV China Life Insurance

5 Exeter US Industrial 2015 Multiple, United States $3,118.5 58,058,188 $54 ADIA JV PSP Investments

6 USAA Real Estate Industrial Recap Portfolio 15 Multiple, United States $652.5† 14,339,906 $51 ADIA JV PSP Investments

7 Cervalis/CyrusOne Merger 15 Northeast $400.0 525,000 $762 CyrusOne

8 Westcore CA/CO Industrial Portfolio 2015 Multiple, United States $296.7 3,058,292 $97 UBS

9 CenterPoint TX Industrial Portfolio 2015 Houston, TX n/a 3,482,349 n/a CalPERS

10 DivcoWest CA Industrial Portfolio 2015 Multiple, CA $232.8 1,849,961 $126 DRA Advisors JV Westcore Properties

* When prices are not known, estimated prices are used in the ranking but are not shown. In the case of partial interest deals, the pro-rated share of the property was used for the transaction price and the PPU/PPSF was based on the full 100% price. † Partial Interest

Top Industrial Transactions of 2015


2015 YEAR IN REVIEW

Methodology Rankings are based on the pro-rated share of the total property or portfolio value. Transactions $2.5M and greater. See notes page for full methodology.

Top Buyers by Region*

Mid-Atlantic Global Logistic PropertiesGIC (Govt of Singapore)

ADIAPSP Investments

CPP Investment Board 0 Midwest

Global Logistic PropertiesPrologis

Norges Bank (NBIM)ADIA

PSP Investments 0 Northeast

PrologisNorges Bank (NBIM)

Global Logistic PropertiesGIC (Govt of Singapore)

CyrusOne 0 Southeast

Global Logistic PropertiesADIA

PSP InvestmentsPrologis

Norges Bank (NBIM) 0 Southwest

Global Logistic PropertiesGIC (Govt of Singapore)CPP Investment BoardChina Life Insurance

ADIA 0 West

Global Logistic PropertiesGIC (Govt of Singapore)

PrologisNorges Bank (NBIM)

CPP Investment Board

*ranked by investment volume

Top 25 by Investment Volume

Top 15 by Number of Properties

SellersBuyers

SellersBuyers

(in Billions)

$0 $7 $14TIAA-CREFTPG Capital

Principal FinancialLexington Realty

Colony CapitalFacebook

Westcore PropertiesNorthStar Real Estate Income II

CyrusOneCabot Properties

CalPERSChambers Street Properties

Gramercy Property TrustClarion Partners

Exeter Property GroupSelect Income REIT

Industrial Property TrustChina Life Insurance

CPP Investment BoardADIA

PSP InvestmentsNorges Bank (NBIM)

PrologisGIC (Govt of Singapore)

Global Logistic Properties

$0 $4 $8Ford Motor Company

Caisse de DepotDivcoWest

TIAA-CREFPrincipal Financial

Panattoni DevelopmentTPG Capital

Crow HoldingsClarion Partners

Cervalis HoldingsWestcore Properties

MetLifeHillwood

TA RealtyLBA Realty

Gramercy Property TrustDuke Realty

USAA Real EstateCole Corp Income Tr

PrologisGlobal Logistic Properties

Exeter Property GroupIndustrial Income Trust

KTR CapitalBlackstone

0 400 800Cabot Properties

Select Income REITInvestcorp

Ackerman & CoIndustrial Property Trust

Chambers Street PropertiesExeter Property Group

ADIANorges Bank (NBIM)

PSP InvestmentsPrologis

CPP Investment BoardChina Life Insurance

GIC (Govt of Singapore)Global Logistic Properties

0 300 600LBA Realty

Liberty Property TrustGE Capital

First IndustrialTA Realty

Cole Corp Income TrPrologis

Pattillo Industrial REGramercy Property Trust

Duke RealtyIndustrial Income Trust

KTR CapitalExeter Property Group

Global Logistic PropertiesBlackstone

Top Industrial Buyers & Sellers of 2015


2015 YEAR IN REVIEW

INDUSTRIAL

Market Table: 2015 Summary - FlexVolume Pricing

Transactions Reported Closed Full Year 2015 Vol ($M) YOY

Change # Props YOY Change Low PPSF High Low Avg Cap

Rate High

Mid-AtlanticBaltimore $230.8 285% 21 133% $58 $88 $137 DC 3.5 1 DC MD burbs 72.1 -83% 7 -22% 87 123 184 DC VA burbs 299.5 67% 17 55% 55 119 192 5.9% 6.0% 6.0%Philadelphia 162.4 63% 36 157% 22 45 126 7.6% 8.2% 8.5%Pittsburgh 3.3 -50% 1 -50% Richmond/Norfolk 143.1 948% 15 275% 22 84 195 6.5% 7.0% 7.3%Tertiary Mid-Atlantic 158.0 -44% 21 -45% 24 76 287 Total $1,072.7 1% 119 37% $22 $82 $287 5.1% 6.9% 8.5%

MidwestChicago 446.2 -18% 63 -2% 24 82 739 6.6% 7.6% 8.7%Cincinnati 81.3 180% 7 0% 35 77 130 Cleveland 48.6 -57% 5 -44% 41 93 235 6.8% 7.2% 7.5%Columbus 59.2 28% 11 83% 18 51 114 Detroit 162.7 44% 17 -29% 30 72 150 6.8% 8.2% 9.3%Indianapolis 124.0 22% 22 -19% 34 62 170 Kansas City 82.0 -4% 5 -72% 50 157 372 Minneapolis 392.3 -1% 52 8% 22 66 147 7.3% 9.4% 11.5%St Louis 177.6 296% 32 256% 22 56 379 Tertiary Midwest 198.9 -15% 46 28% 6 45 150 7.3% 7.4% 7.4%Total $1,772.9 4% 260 5% $6 $66 $739 6.6% 7.8% 11.5%

NortheastBoston 841.4 115% 61 61% 19 138 747 6.3% 7.0% 7.8%Hartford 41.1 955% 4 300% 26 67 128 Long Island 68.0 1% 14 8% 83 130 220 Manhattan 84.2 -68% 3 -50% 566 683 900 No NJ 767.4 85% 55 41% 19 77 273 5.8% 6.2% 6.7%NYC Boroughs 101.1 -68% 12 -29% 112 229 1,030 Stamford 191.9 4821% 6 500% 86 114 235 6.4% 7.0% 8.4%Westchester 207.1 480% 5 25% 34 52 81 Tertiary Northeast 20.4 -69% 8 -43% 11 21 96 Total $2,322.7 49% 168 26% $11 $115 $1,030 5.8% 7.2% 10.4%

SoutheastAtlanta 431.6 19% 42 0% 19 62 161 Broward 248.3 135% 27 170% 52 100 258 Charlotte 154.9 -31% 18 -22% 34 70 266 Jacksonville 69.4 -69% 8 -56% 41 70 92 Memphis 42.1 729% 5 400% 40 47 53 Miami 61.2 -3% 11 -15% 55 143 1,933 Nashville 99.6 40% 16 60% 3 33 642 Orlando 236.6 -31% 17 113% 24 60 129 Palm Beach 84.7 163% 13 117% 57 92 185 Raleigh/Durham 235.1 -8% 17 0% 62 175 410 Tampa 134.8 76% 16 78% 8 53 173 Tertiary Southeast 271.7 12% 42 14% 7 54 267 5.8% 8.1% 9.8%Total $2,069.9 3% 232 20% $3 $69 $1,933 5.8% 8.3% 9.8%

SouthwestAustin 319.1 7% 17 -15% 78 94 135 Dallas 784.6 47% 69 10% 43 85 1,251 7.1% 8.1% 9.2%Denver 279.8 1% 41 58% 45 96 189 7.0% 7.4% 7.5%Houston 148.0 -52% 21 -38% 65 85 132 6.4% 7.8% 8.9%Phoenix 622.5 127% 58 71% 49 116 408 5.8% 7.5% 11.8%San Antonio 163.9 88% 19 90% 69 114 143 Tertiary Southwest 195.4 61% 27 29% 55 76 161 6.1% 7.3% 8.5%Total $2,513.2 32% 252 21% $43 $99 $1,251 5.8% 7.7% 11.8%

WestEast Bay 572.0 30% 54 35% 26 111 253 5.7% 6.4% 7.0%Inland Empire 382.4 102% 39 44% 50 78 164 4.1% 5.4% 7.2%Las Vegas 114.1 -16% 17 -11% 59 95 231 6.0% 6.7% 7.5%Los Angeles 1,072.5 6% 126 52% 45 181 1,284 4.0% 5.5% 6.9%Orange Co 841.0 57% 72 16% 80 177 396 4.9% 5.1% 5.3%Portland 214.3 212% 25 92% 45 78 175 Sacramento 127.2 98% 11 22% 58 96 135 Salt Lake City 77.7 1288% 13 550% 60 104 152 San Diego 728.0 -11% 67 16% 70 147 398 5.4% 6.8% 8.5%San Francisco 683.5 442% 25 79% 138 355 668 San Jose 1,342.1 -6% 87 2% 55 214 612 3.8% 7.1% 9.5%Seattle 970.2 458% 39 50% 76 156 303 4.3% 5.7% 7.0%Tertiary West 273.2 28% 57 90% 28 88 745 Total $7,398.3 42% 632 35% $26 $153 $1,284 3.8% 6.1% 9.5%US Other 26.7 8Total US $17,176.3 28% 1,671 25% $3 $107 $1,933 3.8% 7.0% 11.8%


2015 YEAR IN REVIEW

Market Table: 2015 Summary - WarehouseVolume Pricing

Transactions Reported Closed Full Year 2015 Vol ($M) YOY

Change # Props YOY Change Low PPSF High Low Avg Cap

Rate High

Mid-AtlanticBaltimore $725.2 49% 62 22% $20 $55 $185 6.1% 7.0% 8.6%DC 209.3 255% 11 57% 120 167 742 5.8% 6.5% 7.3%DC MD burbs 514.4 97% 43 87% 30 67 301 DC VA burbs 269.4 151% 25 67% 48 114 274 5.9% 6.2% 6.8%Philadelphia 471.1 67% 60 71% 7 52 563 7.0% 7.6% 8.5%Pittsburgh 61.3 210% 8 60% 14 47 126 7.3% 8.0% 8.8%Richmond/Norfolk 587.2 206% 41 95% 12 59 309 7.2% 7.9% 8.6%Tertiary Mid-Atlantic 2,557.3 141% 167 50% 6 50 1,739 6.1% 6.9% 7.8%Total $5,395.1 119% 417 56% $6 $58 $1,739 5.8% 7.1% 8.8%

MidwestChicago 3,562.0 34% 376 40% 14 58 2,336 5.5% 6.5% 8.5%Cincinnati 534.1 72% 66 78% 10 37 105 7.1% 7.7% 8.3%Cleveland 137.7 4% 18 -22% 17 47 95 6.2% 6.7% 7.3%Columbus 843.9 90% 57 36% 10 41 164 6.0% 7.4% 9.0%Detroit 349.5 0% 53 -12% 20 45 116 8.3% 10.1% 11.8%Indianapolis 1,028.2 41% 89 39% 8 47 102 Kansas City 130.0 -36% 20 -5% 26 39 86 Minneapolis 539.2 8% 82 22% 14 49 117 6.1% 6.5% 7.0%St Louis 410.8 48% 40 18% 15 44 200 7.8% 7.9% 8.0%Tertiary Midwest 1,691.2 17% 239 36% 4 39 252 5.9% 8.1% 11.5%Total $9,226.6 31% 1,040 31% $4 $46 $2,336 5.5% 7.8% 11.8%

NortheastBoston 892.6 33% 113 64% 11 65 1,331 7.0% 7.3% 7.5%Hartford 164.1 165% 13 86% 26 46 104 Long Island 201.9 3% 28 -15% 47 97 353 Manhattan 366.2 -15% 9 -25% 524 629 3,517 No NJ 2,627.6 113% 170 20% 19 79 268 5.7% 6.6% 7.8%NYC Boroughs 1,553.6 13% 174 31% 63 264 2,259 3.9% 5.1% 6.1%Stamford 227.7 428% 27 350% 26 77 568 7.1% 7.4% 8.0%Westchester 96.5 -28% 12 -14% 16 82 250 Tertiary Northeast 260.0 -8% 41 46% 13 41 211 6.3% 8.1% 10.6%Total $6,390.2 44% 587 32% $11 $109 $3,517 3.9% 6.7% 10.6%

SoutheastAtlanta 2,210.3 14% 232 25% 8 44 413 6.5% 7.5% 8.3%Broward 661.9 213% 56 93% 50 91 198 Charlotte 784.7 57% 71 61% 13 55 317 6.4% 7.3% 8.7%Jacksonville 395.7 346% 23 77% 13 51 113 Memphis 1,052.8 428% 78 225% 7 34 100 Miami 927.1 78% 101 36% 29 96 2,140 5.5% 6.9% 11.0%Nashville 674.2 57% 60 71% 23 43 961 6.5% 8.2% 9.1%Orlando 387.8 217% 55 189% 25 50 127 Palm Beach 126.1 71% 24 71% 32 84 275 Raleigh/Durham 90.2 -42% 13 -38% 13 55 107 Tampa 374.3 154% 50 127% 10 44 139 Tertiary Southeast 2,530.4 8% 278 18% 6 34 199 5.7% 7.3% 10.3%Total $10,215.4 52% 1,041 45% $6 $45 $2,140 5.5% 7.3% 11.0%

SouthwestAustin 711.8 93% 119 159% 21 82 134 Dallas 2,721.4 41% 272 33% 19 65 342 6.9% 7.7% 9.3%Denver 683.6 -3% 85 -22% 22 74 474 6.1% 7.1% 8.5%Houston 1,789.4 117% 151 47% 10 79 195 6.8% 7.9% 8.7%Phoenix 1,167.5 58% 101 26% 22 81 182 5.8% 6.3% 7.4%San Antonio 261.7 -11% 52 100% 16 35 293 7.8% 8.1% 8.5%Tertiary Southwest 1,096.2 63% 165 25% 3 43 333 6.0% 7.5% 10.1%Total $8,431.5 52% 945 35% $3 $66 $474 5.8% 7.4% 10.1%

WestEast Bay 1,591.6 255% 98 81% 28 98 595 4.0% 5.6% 8.0%Inland Empire 3,107.1 78% 169 28% 30 86 542 3.9% 5.0% 7.1%Las Vegas 541.3 162% 48 66% 40 91 185 6.4% 6.7% 7.3%Los Angeles 4,587.0 88% 461 46% 28 140 1,352 3.9% 5.5% 7.6%Orange Co 1,269.1 52% 115 42% 47 147 501 4.5% 5.3% 7.5%Portland 991.8 201% 87 85% 18 73 175 5.4% 6.2% 7.5%Sacramento 386.2 345% 43 139% 26 67 270 5.0% 5.7% 6.5%Salt Lake City 372.7 74% 42 56% 15 66 117 5.8% 7.1% 8.3%San Diego 1,007.8 120% 84 53% 43 109 566 5.3% 6.6% 8.5%San Francisco 632.8 96% 72 26% 101 292 2,318 3.0% 4.6% 6.3%San Jose 944.0 188% 83 60% 64 173 674 5.5% 6.6% 8.0%Seattle 1,477.5 132% 107 49% 24 103 553 5.0% 5.7% 6.2%Tertiary West 2,641.2 136% 271 115% 11 75 719 5.5% 6.6% 8.0%Total $19,550.2 113% 1,680 58% $11 $108 $2,318 3.0% 5.8% 8.5%US Other 150.5 -85% 16 -93%Total US $59,359.5 63% 5,726 36% $3 $68 $3,517 3.0% 6.7% 11.8%


2015 YEAR IN REVIEW

INDUSTRIAL

Property Name SF Price OwnerAddress Year Built PPSF SellerLocation Notes Quali� er Broker

Reported in the Past 45 DaysSelected Investment Sales Transactions

Mid-Atlantic

Logisticenter Carlisle 1,302,250 $62,475,000 1 Ames Dr 2013 47.97 Carlisle, PA Warehouse confi rmed

Newington Business Park Cnt. 255,600 $32,500,000 8532-8540 Terminal Rd 1986 127.15 Lorton, VA Flex confi rmed

301 West Park Lane 180,000 $11,750,000 301 W Park Ln 2007 65.28 Hampton, VA Warehouse confi rmed

Jackson's Pointe Commerce Park Lot 7 61,213 $7,682,232 Jacksons Pointe Rd 2015 125.50 Zelienople, PA Warehouse confi rmed

Corporate Pointe IV 80,118 $5,000,000 14111 Park Meadow Dr 1998 62.41 Chantilly, VA Flex approximate

Midwest

Turnberry Lakes 710,523 $83,500,000 501 Gary Ave 2015 117.52 Roselle, IL Warehouse confi rmed

CenterPoint 1 1166,015 $60,400,000 5235 Westpoint Dr 2010 51.80 Groveport, OH Warehouse approximate

Plainfi eld Business Center 321,627 $15,450,000 1251 South Perry Rd 2006 48.04 Plainfi eld, IN Warehouse confi rmed

1340 South Damen 150,815 $14,200,000 1340 S Damen 1944 94.16 Chicago, IL Flex approximate

Northeast

200 Cambridge Park Drive 221,676 $165,500,000 200 Cambridge Park Dr 2001 746.59 Cambridge, MA Flex confi rmed

177 N 7th Street 10,500 $20,500,000 177 N 7th St 1950 1,952.38 Brooklyn, NY Warehouse approximate

Norton Business Center 476,000 $19,152,000 380 S Worcester St 1965 40.24 Norton, MA Warehouse confi rmed

Former White Rose Foods 175,000 $19,000,000 215 Blair Rd 1970 108.57 Avenel, NJ Warehouse confi rmed

Astrodyne TDI 146,405 $13,130,000 36 Newburgh Rd 1976 89.68 Hackettstown, NJ Flex confi rmed

American Realty Advisors from Dermody Properties JV PCCP, LLC by CBRE

Velsor Properties from First Potomac Realty Trust by HFF

MDH Partners from High Street Equity by CBRE; Cushman & Wakefi eld

CR Bard by Avison Young from The Buncher Co

Exeter Property Group from NYSCRF JV Liberty Property Trust by Cushman & Wakefi eld

DEXUS from Panattoni Development by Colliers International

ADIA JV PSP Investments from Exeter Property Group by Eastdil; CBRE

Industrial Property Trust from KBS REIT I by JLL

Alex. Brown Realty from Lionstone Investments

Morgan Stanley from King Street Properties by Cushman & Wakefi eld

Sterling Equities by RKF from Jeremy Strassler

Spaulding & Slye from Calare Properties by JLL

Sitex Realty Group by CBRE from C&S Wholesale by CBRE

Gramercy Property Trust from Astrodyne TDI by JLL


2015 YEAR IN REVIEW

Property Name SF Price OwnerAddress Year Built PPSF SellerLocation Notes Quali� er Broker

Reported in the Past 45 DaysSelected Investment Sales Transactions

Southeast

Gwinnett Corporate Center 1200,000 $83,200,000 4150 Shackleford Rd 1995 69.33 Norcross, GA Flex confi rmed

Emery/Southfi eld 566,055 $61,675,000 105 Southfi eld Pkwy 1997 108.96 Forest Park, GA Warehouse confi rmed

FedEx 175,315 $18,410,000 450 Northpointe Ct 2015 105.01 Covington, LA Warehouse confi rmed

4221 Pilot Drive 600,000 $11,900,000 4221 Pilot Dr 1973 19.83 Memphis, TN Warehouse confi rmed

Southwest

Shutterfl y 237,000 $43,100,000 7195 S Shutterfl y Way 2015 181.86 Tempe, AZ Warehouse confi rmed

Lincoln Commerce Park 2 336,665 $36,450,000 2145 S 11th Ave 2007 108.27 Phoenix, AZ Flex confi rmed

Hilti No. America Operations Cnt. 418,453 $23,000,000 5404 S 122nd E Ave 1979 54.96 Tulsa, OK Flex confi rmed

TIAA Building 92,487 $17,500,000 11525 Main St 2002 189.22 Broomfi eld, CO Flex confi rmed

BACH Composite Colorado 83,178 $6,000,000 1011 14th St 1973 72.13 Fort Lupton, CO Warehouse approximate

West

Tukwila Business Park 1,243,601 $202,800,000 18338 Andover Park W 1979 163.07 Seattle, WA Flex confi rmed

Amazon Fulfi llment Center 1,015,740 $91,250,000 255 Park Center Dr 2013 89.84 Patterson, CA Warehouse confi rmed

Redlands Business Center 411,879 $33,325,000 2220 Almond Ave 2007 80.91 Redlands, CA Flex confi rmed

26600 SW Parkway Ave 581,000 $32,700,000 26600 SW Parkway Ave 1981 56.28 Wilsonville, OR Flex confi rmed

2660 Waiwai Loop 62,224 $16,500,000 2660 Waiwai Loop 1974 265.17 Honolulu, HI Warehouse confi rmed

Westmount Realty Capital JV Quilvest from Harbert Management Corp JV Dexter Companies by Cushman & Wakefi eld

Industrial Property Trust from Prologis by CBRE

MREIC from Jones Development Co LLC

Sealy & Co by NAI Saig Co from Hillwood

Watumull Properties from Wentworth Property Co JV Northwood Investors by JLL

Colony Capital from Cornerstone RE Advisers by Cushman & Wakefi eld; Lee & Associates

Educational Development Corp from Hilti Inc by CBRE Capital Markets

GI Partners OBO CalPERS from Lincoln Property Co by CBRE

Merritt Companies from BACH Composite Industry

Clarion Partners from Mario Segale by CBRE

PNC Realty Investors Inc from USAA Real Estate by Cushman & Wakefi eld

Clarion Partners from Bixby Land by JLL

ScanlanKemperBard JV Oaktree from Xerox by CBRE

SCI Corp from Watumull Properties by Colliers International


2015 YEAR IN REVIEW

INDUSTRIAL

Top 15 by Number of Properties

Flex Warehouse All IndustrialBy Region*

*ranked by investment volume

Methodology Full credit assigned to sellers’ representative. When two brokers represent same seller, both sellers’ representatives assigned full credit. For partial-interest, rankings are based on the pro-rated share of the total property or portfolio value. For more information on rankings please visit www.rcanalytics.com/Misc/Brokers_Ranking_Methodology.pdf

Mid-AtlanticCBRE

Eastdil

Cushman & Wakefield

DTZ

Transwestern

MidwestCBRE

Eastdil

Colliers International

Cushman & Wakefield

JLL

NortheastCBRE

Cushman & Wakefield

Eastdil


HFF

SoutheastCBRE

Eastdil

Cushman & Wakefield

JLL


SouthwestCBRE

HFF

Eastdil

JLL


WestCBRE


Cushman & Wakefield

Eastdil

JLL

Flex Warehouse All Industrial

0 2 4

CORFACMadison Partners

Savills StudleyStan Johnson Co

Modern SpacesONCOR

C-III Realty ServicesCRESA Partners

SVNIndustry Partners, Inc.

NAI GlobalKidder Mathews

Avison YoungVoit RE ServicesLee & Associates

Marcus & MillichapNewmark Grubb Knight Frank

TranswesternDTZJLL

HFFEastdil

Colliers InternationalCushman & Wakefield

CBRE

0 7 14

Eastern ConsolidatedSavills Studley

HK GroupKalmon Dolgin

RosewoodONCOR

SVNCORFAC

Kidder MathewsBinswanger

Avison YoungNAI Global

Voit RE ServicesStan Johnson Co

TranswesternLee & Associates

Marcus & MillichapNewmark Grubb Knight Frank

DTZHFFJLL


EastdilCBRE

0 8 16

Industry Partners, Inc.HK Group

Kalmon DolginRosewood

Savills StudleyBinswanger

ONCORCORFAC

SVNKidder Mathews

Stan Johnson CoNAI Global

Avison YoungVoit RE ServicesLee & Associates

TranswesternMarcus & Millichap

Newmark Grubb Knight FrankDTZHFFJLL


EastdilCBRE

0 130 260

SVNNAI Global

Avison YoungTranswestern

Voit RE ServicesMarcus & Millichap

Lee & AssociatesNewmark Grubb Knight Frank

JLLHFFDTZ

EastdilColliers International

Cushman & WakefieldCBRE

0 450 900

Stan Johnson CoAvison Young

NAI GlobalVoit RE Services

TranswesternLee & Associates

Marcus & MillichapDTZHFF

Newmark Grubb Knight FrankJLL



0 600 1200

SVNAvison Young

NAI GlobalTranswestern

Voit RE ServicesLee & Associates

Marcus & MillichapDTZ

Newmark Grubb Knight FrankHFFJLL



*The transaction volume of brokerage firms that have merged are left unconsolidated before the merger date and are attributed to the surviving or newly formed company after the merger date.

Top 25 by Investment Volume(in Billions)

Top Industrial Brokers of 2015


2015 YEAR IN REVIEW

ABOUT REAL CAPITAL ANALYTICSReal Capital Analytics, Inc (RCA) is an indepen-dent data and analytics firm focused exclusively on the capital investment markets for commercial real estate. RCA offers the most in-depth, comprehensive and current information of activ-ity in the industry. Formed in 2000, RCA has offices in New York City, San Jose, and London. In addition to collecting transactional informa-tion for property sales and financing, RCA interprets the data includ-ing capitalization rates, market trends, pricing and sales volume. The firm publishes a series of Capital Trends reports and offers an online service that provides real-time, global transactional market informa-tion. For more information, visit: www.rcanalytics.com.

ABOUT US CAPITAL TRENDS®US Capital Trends is published by Real Capital Analytics, Inc.Copyright ©2015 Real Capital Analytics, Inc. All rights reserved.It is a violation of Federal law to photocopy or reproduce any part of this publication, or forward it electronically, without first obtaining permission from Real Capital Analytics, Inc. To subscribe as an indi-vidual or to purchase a corporate license for your office, please call 1.866.REAL.DATA.

Information presented by RCA has been compiled from sources believed to be reliable. While we have no reason to doubt its accuracy, RCA makes no representation or warranty regarding the information. The information is provided as is without warranties of any kind, express or implied, and may be subject to material revisions.

NOTES & METHODOLOGYThe information maintained by RCA and presented in this report encom-passes markets nationally and includes only properties or portfolios $2.5M or greater. Readers should note that there is substantial investment activ-ity, largely local in nature, that falls below this threshold and is not cap-tured in this report.

Records are maintained for transactions that represent the transfer of a controlling interest in a property or portfolio of properties that are $2.5M or greater. Transactions are assumed to be fee simple; lease-hold and commercial condominium interests are noted, if known. Transactions include both real estate asset sales as well as transac-tions involving real estate operating and investment entities. Thus, for example, merger and acquisition activity among entire REITs or other real estate entities is included in this report unless noted oth-erwise. Sales of partial interest transactions will receive credit and be valued at the pro-rated share.

For this report, market classifications are defined as followed:

Major Metros: Boston, Chicago, DC Metro, LA Metro, NYC Metro and SF Metro

Secondary: Atlanta, Austin, Charlotte, Cincinnati, Cleveland, Colum-bus, Dallas, Baltimore, Denver, Detroit, Houston, Indianapolis, Jack-sonville, Kansas City, Las Vegas, Memphis, Milwaukee, Minneapolis, Nashville, Norfolk, Orlando, Philly Metro, Phoenix, Pittsburg, Portland, Raleigh/Durham, Sacramento, Salt Lake City, San Antonio, San Diego, Seattle, South Florida, St Louis and Tampa.

Tertiary: All other US markets.

Commercial Property Price Indices (RCA CPPI™): CPPI use advanced repeat-sale regression (RSR) methodology, which uses quali-fied repeat-sale observations to measure price change in commercial real estate. All CPPI are based on similar index methodology devel-oped by RCA and further information is available on our website. The US suite of CPPI includes 23 Moody’s/RCA CPPI national benchmarks and over 200 RCA US CPPI for regions, markets and property niches.

The Moody’s /RCA CPPI suite includes national composites for all property types and all commercial. Each of the apartment, hotel, CBD office, suburban office, retail and industrial sector indices are compos-ites with each based on Major Metro and Non-Major Metro indices.

The RCA US CPPI were developed and published by Real Capital Ana-lytics to complement the Moody’s/RCA CPPI but are not maintained, reviewed, endorsed, or otherwise affiliated with Moody’s Investors Service or its affiliates.

Ranking Methodology: Based on transactions $2.5M and greater. Full dollar value is assigned to each buyer, seller, or broker in joint venture transactions. Partial interest sales are included at the pro-rated share of the total property or portfolio value.Trend analysis may exclude certain transactions that exceed 5% of the data sample or that may otherwise skew results. A complete glossary and methodology can be found at www.rcanalytics.com.

Abbreviations:PPSF = Price Per-Square-FootBPS = Basis PointsYOY = Year-Over-Year

YTD = Year-to-DateQ1 = First Quarter of YearH1 = First Half of Year

REAL CAPITAL ANALYTICSwww.rcanalytics.com

US Headquarters110 Fifth AvenueNew York, NY 10011Toll-Free: 1.866.REAL.DATAPhone: 212.387.7103

US West Coast OfficePruneyard Towers1901 South Bascom AvenueCampbell, CA 95008Phone: 408.371.8880

Europe Office71 Broadwick StreetLondon, United Kingdom W1F 9QYPhone: +44.207.297.6860

Robert M White, Jr Founder & PresidentJim Costello Senior Vice PresidentDoug Murphy Senior Director, AnalyticsAndrew Pisanelli Director, AnalyticsYiqun Wang Director, AnalyticsHermann Lademann Senior Manager, AnalyticsSean Kane Senior AnalystRachel Tipermas AnalystElizabeth Szep AnalystAlexis Maltin AnalystYogeeta Chatoredussy AnalystJoseph Kizel AnalystMichael Gilligan Principal ArchitectMark Bell Vice President, MarketingSiobhan Crise Publication Manager

Notes & Defi nitions

Loan Search – the largest database of commercial real estate financings linked to properties, borrowers and lenders.


2015 YEAR IN REVIEW

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