Green Bay & Appleton Markets 2011 Year in Review

By: Detlef H. Weiler MAI

Weiler Appraisal Inc.

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1/11 2/11 3/11 4/11 5/11 6/11 7/11 8/11 9/11 10/11

Unemployment Rate Trends

USA Wisconsin Green Bay Appleton

Source: Wisconsin Worknet

2010 AverageUSA: 9.6%WI: 8.3%Green Bay: 7.7%Appleton: 7.7%

Oct. 2011USA: 8.5%WI: 6.8%Green Bay: 6.5%Appleton: 6.1%

$8.00

$10.00

$12.00

$14.00

$16.00

$18.00

$20.00

$22.00

$24.00

$26.00

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

2007 3Q

2007 4Q

2008 1Q

2008 2Q

2008 3Q

2008 4Q

2009 1Q

2009 2Q

2009 3Q

2009 4Q

2010 1Q

2010 2Q

2010 3Q

2010 4Q

2011 1Q

2011 2Q

2011 3Q

Office Market Overview

US Rent Brown Rent Outagamie Rent

US Vacancy Brown Vacancy Outagamie Vacancy

Source: CoStar

Weiler Appraisal Inc.

Brown Co.: 473 Buildings, 7.8 Million Sq. Ft.

Outagamie Co.: 350 Buildings, 4.8 Million Sq. Ft.

Weiler Appraisal Inc.

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

2007 3Q

2007 4Q

2008 1Q

2008 2Q

2008 3Q

2008 4Q

2009 1Q

2009 2Q

2009 3Q

2009 4Q

2010 1Q

2010 2Q

2010 3Q

2010 4Q

2011 1Q

2011 2Q

2011 3Q

Squa

re F

eet

Office Leasing Activity

Brown County Outagamie County

Past Year:Brown Co: 137,043 Sq. Ft. Outagamie Co.: 57,770 Sq. Ft.

Source: CoStar

Source: CoStar

$8.00

$10.00

$12.00

$14.00

$16.00

$18.00

$20.00

$22.00

$24.00

2007 3Q

2007 4Q

2008 1Q

2008 2Q

2008 3Q

2008 4Q

2009 1Q

2009 2Q

2009 3Q

2009 4Q

2010 1Q

2010 2Q

2010 3Q

2010 4Q

2011 1Q

2011 2Q

2011 3Q

EG

I P

SF

Office EGI Trends

National Brown Outagamie

Weiler Appraisal Inc.

Change since peak of market:

National: -12.3% Brown Co.: -11.0% Outagamie Co.: -2.5%

Change since 3rd Quarter 2010:

National: -0.6% Brown Co.: +1.0% Outagamie Co.: -0.3%

Weiler Appraisal Inc.

417 Pine St. 425 Pine St.

NEC Main @ Madison 2737 S. Ridge Rd.

Future Office Vacancies?

Weiler Appraisal Inc.

Office BuildingSale Trends

Brown County

Outagamie County

Source: CoStar

Weiler Appraisal Inc.

Brown Co.: 1,043 Buildings, 14.5 Million Sq. Ft.

Outagamie Co.: 826 Buildings, 12.7 Million Sq. Ft.

$9.00

$10.00

$11.00

$12.00

$13.00

$14.00

$15.00

$16.00

$17.00

$18.00

5.0%

5.5%

6.0%

6.5%

7.0%

7.5%

8.0%

8.5%

9.0%

9.5%

10.0%

2007 3Q

2007 4Q

2008 1Q

2008 2Q

2008 3Q

2008 4Q

2009 1Q

2009 2Q

2009 3Q

2009 4Q

2010 1Q

2010 2Q

2010 3Q

2010 4Q

2011 1Q

2011 2Q

2011 3Q

Retail Market Overview

US Rent Brown Rent Outagamie Rent

US Vacancy Brown Vacancy Outagamie Vacancy

Weiler Appraisal Inc.

Past Year:Brown Co: 116,756 Sq. Ft. Outagamie Co.: 98,052 Sq. Ft.

Source: CoStar

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2007 3Q

2007 4Q

2008 1Q

2008 2Q

2008 3Q

2008 4Q

2009 1Q

2009 2Q

2009 3Q

2009 4Q

2010 1Q

2010 2Q

2010 3Q

2010 4Q

2011 1Q

2011 2Q

2011 3Q

Sqau

re F

eet

Retail Leasing Activity

Brown County Outagamie County Trend Line BC

4 per. Mov. Avg. BC Trend Line OC 4 per. Mov. Avg. OC

Source: CoStar

Weiler Appraisal Inc.

Change since peak of market

National: -13.5% Brown Co.: -19.5% Outagamie Co.: -16.2%

Change since 3rd Quarter 2010:

National: -2.5% Brown Co.: -4.4% Outagamie Co.: -5.3%

$8.00

$9.00

$10.00

$11.00

$12.00

$13.00

$14.00

$15.00

$16.00

$17.00

2007 3Q

2007 4Q

2008 1Q

2008 2Q

2008 3Q

2008 4Q

2009 1Q

2009 2Q

2009 3Q

2009 4Q

2010 1Q

2010 2Q

2010 3Q

2010 4Q

2011 1Q

2011 2Q

2011 3Q

EG

I P

SF

Retail EGI Trends

National Brown Outagamie

Weiler Appraisal Inc.

Retail BuildingSale Trends

Brown County

Outagamie County

Source: CoStar

Weiler Appraisal Inc.

Brown Co.: 160 Buildings, 5.7 Million Sq. Ft.

Outagamie Co.: 115 Buildings, 4.7 Million Sq. Ft.

$9.00

$10.00

$11.00

$12.00

$13.00

$14.00

$15.00

$16.00

$17.00

$18.00

7.0%

8.0%

9.0%

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

2007 3Q

2007 4Q

2008 1Q

2008 2Q

2008 3Q

2008 4Q

2009 1Q

2009 2Q

2009 3Q

2009 4Q

2010 1Q

2010 2Q

2010 3Q

2010 4Q

2011 1Q

2011 2Q

2011 3Q

Shopping Center Market Overview

US Rent Brown Rent Outagamie Rent

US Vacancy Brown Vacancy Outagamie Vacancy

Weiler Appraisal Inc.

Past Year:Brown Co: 39,654 Sq. Ft. Outagamie Co.: 38,597 Sq. Ft.

Source: CoStar

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2007 3Q

2007 4Q

2008 1Q

2008 2Q

2008 3Q

2008 4Q

2009 1Q

2009 2Q

2009 3Q

2009 4Q

2010 1Q

2010 2Q

2010 3Q

2010 4Q

2011 1Q

2011 2Q

2011 3Q

Squa

re F

eet

Shopping Center Leasing Activity

Brown County Outagamie County Trend Line BC

4 per. Mov. Avg. BC Trend Line OC 4 per. Mov. Avg. OC

Source: CoStar

Weiler Appraisal Inc.

Change since peak of market

National: -13.9% Brown Co.: -17.6% Outagamie Co.: -29.0%

Change since 3rd Quarter 2010:

National: -2.8% Brown Co.: -0.2% Outagamie Co.: -9.0%

$8.00

$9.00

$10.00

$11.00

$12.00

$13.00

$14.00

$15.00

$16.00

2007 3Q

2007 4Q

2008 1Q

2008 2Q

2008 3Q

2008 4Q

2009 1Q

2009 2Q

2009 3Q

2009 4Q

2010 1Q

2010 2Q

2010 3Q

2010 4Q

2011 1Q

2011 2Q

2011 3Q

EG

I P

SF

Shopping Center EGI Trends

National Brown Outagamie

Weiler Appraisal Inc.

2004 1Q

2004 3Q

2005 1Q

2005 3Q

2006 1Q

2006 3Q

2007 1Q

2007 3Q

2008 1Q

2008 3Q

2009 1Q

2009 3Q

2010 1Q

2010 3Q

2011 1Q

2011 3Q$750,000

$800,000

$850,000

$900,000

$950,000

$1,000,000

$1,050,000

$1,100,000

US Retail Sales - Quarterly

US Retail Sales

2011 YTD Comparisons: 2008: +2.8% 2009: +15.5% 2010: +8.4%

Source: US Census Bureau

Source: CoStar

Weiler Appraisal Inc.

Brown Co.: 1,106 Buildings, 37.6 Million Sq. Ft.

Outagamie Co.: 349 Buildings, 15.2 Million Sq. Ft.

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

$5.50

$6.00

$6.50

$7.00

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2007 3Q

2007 4Q

2008 1Q

2008 2Q

2008 3Q

2008 4Q

2009 1Q

2009 2Q

2009 3Q

2009 4Q

2010 1Q

2010 2Q

2010 3Q

2010 4Q

2011 1Q

2011 2Q

2011 3Q

Industrial Market Overview

US Rent Brown Rent Outagamie Rent

US Vacancy Brown Vacancy Outagamie Vacancy

Weiler Appraisal Inc.

Past Year:Brown Co: 154,068 Sq. Ft. Outagamie Co.: 94,832 Sq. Ft.

Source: CoStar

-

50,000

100,000

150,000

200,000

250,000

2007 3Q

2007 4Q

2008 1Q

2008 2Q

2008 3Q

2008 4Q

2009 1Q

2009 2Q

2009 3Q

2009 4Q

2010 1Q

2010 2Q

2010 3Q

2010 4Q

2011 1Q

2011 2Q

2011 3Q

Squa

re F

eet

Industrial Leasing Activity

Brown County Outagamie County Trend Line BC

Trend Line OC 4 per. Mov. Avg. BC 4 per. Mov. Avg. OC

Source: CoStar

Weiler Appraisal Inc.

Change since peak of market

National: -15.2% Brown Co.: -7.1% Outagamie Co.: -4.4%

Change since 3rd Quarter 2010:

National: -0.8% Brown Co.: -2.2% Outagamie Co.: +1.7%

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

$5.50

$6.00

2007 3Q

2007 4Q

2008 1Q

2008 2Q

2008 3Q

2008 4Q

2009 1Q

2009 2Q

2009 3Q

2009 4Q

2010 1Q

2010 2Q

2010 3Q

2010 4Q

2011 1Q

2011 2Q

2011 3Q

EG

I P

SF

Industrial EGI Trends

National Brown Outagamie

Source: Wisconsin Worknet

Weiler Appraisal Inc.

Change since peak of market

USA: -18.5% WI: -11.9% Brown Co.: -8.7% Outagamie Co.: -13.4%

Change since 2010:

USA: +2.6% WI: +3.5% Brown Co.: +1.8% Outagamie Co.: +0.0%

420,000

440,000

460,000

480,000

500,000

520,000

540,000

560,000

580,000

600,000

20,000

22,000

24,000

26,000

28,000

30,000

32,000

2003 2004 2005 2006 2007 2008 2009 2010 10/2011

Wis

cons

in &

USA

Bro

wn

& O

utag

amie

Average Annual Manufacturing Employment

Brown Outagamie USA / 25 Wisconsin

Weiler Appraisal Inc.

National Manufacturing Capacity Utilization

Source: Federal Reserve

--- Total Industrial Production--- Manufacturing Production

Weiler Appraisal Inc.

Industrial BuildingSale Trends

Brown County

Outagamie County

Weiler Appraisal Inc.

Conclusions:

•Overall, the markets appear to have bottomed out.

•EGIs generally stable to slight increases in most recent quarter(s).

•Retail sales have rebounded.

•Industrial market has experienced increases in manufacturing sector

employment and manufacturing capacity utilization.

•Very limited new construction .

•Declining unemployment rates.

•Exception: Green Bay could see higher future downtown office vacancies.

Contact Information:

Detlef H. WeilerPresident

Weiler Appraisal Inc.1221 Bellevue Street, Suite 202

Green Bay, WI 54302920-544-0264

dhw@weilerappraisal.com

Weiler Appraisal Inc.