INDUSTRIAL MARKET REPORT Q4 2020 - Hoff & Leigh

OUR NETWORK IS YOUR EDGE.All information is from sources deemed reliable and is subject to errors,omissions, change of price, rental, prior sale, and withdrawal without notice. Prospect should carefully verify each item of information contained herein.

PREPARED BY:

RD Trinidad Owner

Hoff & Leigh | 1259 Lake Plaza Drive | Colorado Springs, CO 80906 | 719.630.2277 office www.hoffleigh.com/colorado-springs

INDUSTRIAL MARKET REPORT Q4 2020Colorado Springs, CO

INDUSTRIAL MARKET REPORT

Market Key Statistics 2

Leasing 3

Rent 7

Construction 8

Under Construction Properties 9

Sales 10

Sales Past 12 Months 11

Economy 13

Market Submarkets 15

Supply & Demand Trends 17

Rent & Vacancy 19

Sale Trends 21

Colorado Springs Industrial

1/5/2021Copyrighted report licensed to Hoff & Leigh Colorado Springs, LLC -

1031464

Colorado Springs Industrial

OverviewColorado Springs Industrial

162 K 109 K 5.4% 1.5%12 Mo Deliveries in SF 12 Mo Net Absorption in SF Vacancy Rate 12 Mo Rent Growth

Vacancies ticked up in the third quarter due to more than250,000 SF of negative absorption. Still, vacanciesremain historically tight and with minimal supply pressureexpected in the near term, the market is likely tostabilize.

Before the pandemic, net absorption clocked in at justunder 900,000 SF in 2019, the second-strongest in adecade. Both the vacancy and availability rates werelikewise at their lowest in at least 10-years.

Like the rest of the nation, rent growth is showing signsof deceleration in 2020. A slower pace of growth is in thecards in the near term as demand could falter given thecurrent economic environment.

Despite recent turmoil in the job market, investors remainbullish on the long-term outlook of the industrial sector inColorado Springs. More than $30 million worth of assetstraded in the third quarter, one of the best quarterlymarks in the past several years.

KEY INDICATORS

Market RentVacancy RateRBACurrent Quarter Availability Rate Net AbsorptionSF Deliveries SF Under

Construction

$8.932.8%19,140,875Logistics 3.4% 78,805 0 4,135,000

$9.254.9%10,213,720Specialized Industrial 6.7% (1,875) 0 0

$10.2413.1%7,041,482Flex 17.2% 0 0 0

$9.245.4%36,396,077Market 6.6% 76,930 0 4,135,000

ForecastAverage

HistoricalAverage12 MonthAnnual Trends Peak When Trough When

5.7%9.4%0.1%Vacancy Change (YOY) 13.8% 2009 Q3 4.5% 2020 Q1

1,189,830156,723109 KNet Absorption SF 1,283,631 2019 Q1 (1,130,782) 2009 Q3

1,443,663164,581162 KDeliveries SF 412,525 2007 Q4 0 2015 Q2

2.5%2.3%1.5%Rent Growth 5.8% 2019 Q1 -3.2% 2010 Q1

N/A$82.3M$128 MSales Volume $162M 2019 Q2 $32.4M 2009 Q4


1031464 Page 2

Colorado Springs IndustrialOVERVIEW

LeasingColorado Springs Industrial

NET ABSORPTION, NET DELIVERIES & VACANCY

VACANCY RATE


1031464 Page 3

Colorado Springs IndustrialLEASING


AVAILABILITY RATE


1031464 Page 4



12 MONTH NET ABSORPTION SF IN SELECTED BUILDINGS

3rd QtrBuilding Name/Address Submarket Bldg SF Vacant SF

1st Qtr 2nd Qtr 4th Qtr 12 Month

Net Absorption SF

Northwest Ind 710,789 435,484 0 0 0 0 192,490Corporate Ridge

Southeast Ind 197,600 0 50,000 0 0 0 77,0864510 Edison Ave

Southeast Ind 99,960 0 0 0 0 0 62,6732640 Zeppelin Rd

Southeast Ind 61,617 0 0 0 0 0 58,1931225 Aeroplaza Dr

Northwest Ind 151,363 0 0 0 0 0 56,1645825 Mark Dabling Blvd

Southeast Ind 76,800 0 0 0 0 0 22,666Airport Business Center

Greater CBD Ind 21,014 0 0 0 0 0 21,0142901 N El Paso St

Southeast Ind 36,000 0 0 0 0 0 18,8882121 Executive Cir

Northeast Ind 16,858 0 0 0 0 0 16,858N Gate Boulevard & Roller C Rd

Northeast Ind 43,200 0 0 0 0 0 14,4001735 Jet Stream Dr

Southeast Ind 14,637 0 0 0 0 0 13,8232005 Aeroplaza Dr

Southeast Ind 46,444 0 0 0 0 0 12,088Hercules Industries

Northeast Ind 12,000 0 0 0 0 0 12,0008170 Sandy Ct

Southeast Ind 10,800 0 0 0 0 0 10,800555 Amelia St

Southeast Ind 10,506 0 0 0 0 0 10,506720 Seedling Ct

Southeast Ind 10,400 0 0 0 0 0 10,400759-765 Seedling Ct

Southeast Ind 10,000 0 0 0 0 0 10,000Claremont Business Park

1,529,988 435,484 50,000 0 0 0 620,049Subtotal Primary Competitors34,866,089 1,524,348 26,930 0 0 0 (510,980)Remaining Colorado Springs Market

36,396,077 1,959,832 76,930 0 0 0 109,069Total Colorado Springs Market


1031464 Page 5



TOP INDUSTRIAL LEASES PAST 12 MONTHS

Building Name/Address Submarket Leased SF Tenant Name Tenant Rep Company Leasing Rep CompanyQtr

4510 Edison Ave Southeast 147,600 AAA Platte Self Storage - Peak Commercial Prop…Q1 20

4510 Edison Ave Southeast 50,000 - - Peak Commercial Prop…Q4 20

3505-3525 N Stone Ave North 33,104 Virtual Energy - Strata GroupQ3 20

4235 N Nevada Ave North 26,000 Western Peak Logistics JLL;NAI Highland C… Hoff & Leigh Colorado…Q3 20

2660 Vickers Dr Northeast 26,000 Legend Family Sports - Olive Real Estate GroupQ2 20

2520 Aviation Way Southeast 24,000 New Age Beverage - NAI Highland Commerc…Q1 20

3610 Stone Ave North 22,417 Gold Star Foods, Inc. Cushman & Wakefield Olive Real Estate GroupQ2 20

2901 N El Paso St Greater CBD 21,014 Pot Guy - Hoff & Leigh Colorado…Q1 20

117 E Las Vegas St Downtown 18,073 Phil Long Automotive - NAI Highland Commerc…Q1 20

4949 Geiger Blvd Southeast 18,000 Creative Fabrications - CBREQ4 20

4930-4950 Geiger Blvd Southeast 17,540 - - RE/MAX AdvantageQ4 20

111 W Las Vegas St Greater CBD 16,705 Artificial Grass Factory Ou… - Thrive Commercial Part…Q3 20

901 Synthes Ave Northwest 16,100 - - Peak Commercial Prop…Q4 20

4650 Forge Rd Northwest 16,000 Johnson Logistics, LLC Trend Commercial R… Olive Real Estate GroupQ3 20

485 Elkton Dr Northwest 15,270 JE Dunn Construction - Olive Real Estate GroupQ1 20

1735 Jet Stream Dr Northeast 14,400 CC Restoration Peak Commercial Pr… CORE Commercial Bro…Q1 20

3075 Janitell Rd Southeast 12,705 Flowers Baking Co Cushman & Wakefield Cushman & WakefieldQ4 20

2150 Victor Pl * Southeast 11,500 A & E Tire - Olive Real Estate GroupQ1 20

1440 Pando Ave Southwest 11,500 Interior Remodeling Soluti… - RE/MAX Properties, IncQ1 20

720 Seedling Ct Southeast 10,506 - - Hoff & Leigh Colorado…Q1 20

625 N Murray Blvd Southeast 10,000 Colorado Auto Storage Peak Commercial Pr… Peak Commercial Prop…Q3 20

2560 Carmel Dr Southeast 10,000 TEN SIX, LLC - Delta Development IncQ2 20

4602-4614 Northpark Dr North 9,486 - - NAI Highland Commerc…Q4 20

2170-2180 Victor Pl * Southeast 8,256 Waxie Sanitary Supply - Olive Real Estate GroupQ2 20

2513-2515 E Willamette Ave Southeast 8,003 - - -Q1 20

6150 Stadia Ct Southeast 8,000 Crossfit Decimate Peak Commercial Pr… RE/MAX AdvantageQ2 20

5695 Parachute Cir Southeast 8,000 - - Peak Commercial Prop…Q4 20

4250 Buckingham Dr Northwest 7,828 - - Trend Commercial Rea…Q1 20

920-960 Ford St Southeast 7,532 - - Olive Real Estate GroupQ2 20

4250 Hancock Expy Southeast 7,500 Street Metal Classics Olive Real Estate Gr… RE/MAX Properties, IncQ3 20

4120 Mark Dabling Blvd North 7,500 Aramark Uniform & career… Cushman & Wakefield Newmark Knight FrankQ3 20

5045-5053 N 30th St Northwest 7,200 Fifth Gait Technologies, Inc. - Olive Real Estate GroupQ3 20

5135 Centennial Blvd Northwest 7,000 - - Olive Real Estate GroupQ4 20

1902 Aerotech Dr Southeast 6,400 - - Cushman & WakefieldQ4 20

8170 Sandy Ct Northeast 6,398 B&L Plumbing - Hoff & Leigh Colorado…Q3 20

3007 N Institute St North 6,287 Stoner Enterprises Berkshire Hathaway… Berkshire Hathaway Ho…Q2 20

920-960 Ford St Southeast 5,768 - - Olive Real Estate GroupQ3 20

601 W Cucharras St Northwest 5,640 Mobile Crew Chief - RE/MAX Properties, IncQ2 20

3455-3475 Astrozon Ct Southeast 5,600 - - NAI Highland Commerc…Q2 20

4120 N Nevada Ave North 5,500 - - Corey MillerQ1 20

*Renewal


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RentColorado Springs Industrial

MARKET RENT GROWTH (YOY)

MARKET RENT PER SQUARE FEET


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Colorado Springs IndustrialRENT

ConstructionColorado Springs Industrial

DELIVERIES & DEMOLITIONS

SUBMARKET CONSTRUCTION

Average Building Size

RankUnder Constr

Under Construction Inventory

All ExistingSF (000) Pre-Leased SF (000)SubmarketNo. RankBldgs Pre-Leased %

1 Southeast 2 4,030 2,015,000100% 1 16,1944,030 12 Northeast 2 105 52,500100% 1 28,132105 23 CBD 0 - -- - 12,536- -4 Greater CBD 0 - -- - 11,640- -5 North 0 - -- - 17,482- -6 Northwest 0 - -- - 33,740- -7 Southwest 0 - -- - 14,259- -8 Teller County 0 - -- - 13,227- -

Totals 4 4,135 1,033,750100% 18,4854,135


1031464 Page 8

Colorado Springs IndustrialCONSTRUCTION

Under Construction PropertiesColorado Springs Industrial

4 4,135,000 14.1% 100%Properties Square Feet Percent of Inventory Preleased

UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

Mar 2020Grinnell BlvdAmazon Fulfillment Center

4,000,000 4 Mar 2021Trammell Crow CompanyAmazon

1

Sep 201910020 Federal Dr

100,000 1 Jun 2021--

2

Aug 20205710-5750 E Bijou St

30,000 1 Jun 2021--

3

Sep 20204623 Austin Bluffs Pky

5,000 1 Mar 2021--

4


1031464 Page 9

Colorado Springs IndustrialUNDER CONSTRUCTION PROPERTIES

SalesColorado Springs Industrial

SALES VOLUME & MARKET SALE PRICE PER SF


1031464 Page 10

Colorado Springs IndustrialSALES

Sales Past 12 MonthsColorado Springs Industrial

90 7.4% $114 3.7%Sale Comparables Avg. Cap Rate Avg. Price/SF Avg. Vacancy At Sale

SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS

Sales Attributes Low Average Median High

Sale Price $126,725 $2,128,915 $1,300,000 $17,000,000

Price/SF $12 $114 $116 $1,183

Cap Rate 5.5% 7.4% 7.7% 9.0%

Time Since Sale in Months 0.2 5.1 4.5 11.5

Property Attributes Low Average Median High

Building SF 594 17,442 10,000 154,816

Ceiling Height 8' 16' 15'7" 35'

Docks 0 1 0 13

Vacancy Rate At Sale 0% 3.7% 0% 96.0%

Year Built 1900 1987 1986 2020

Star Rating 2.1


1031464 Page 11

Colorado Springs IndustrialSALES PAST 12 MONTHS

Sales Past 12 MonthsColorado Springs Industrial

Property Name - Address Rating Yr Built Bldg SF Vacancy Price Price/SF

Property

Sale Date

Sale

Cap Rate

RECENT SIGNIFICANT SALES

-1 1350 Bellprat Vw2014 154,816 0% $17,000,000 $1101/21/2020 -

-2 5825 Mark Dabling Blvd1979 151,363 0% $17,000,000 $11210/1/2020 8.5%

-3 2640 Zeppelin Rd2018 99,960 0% $14,600,000 $1465/21/2020 -

-4 3802 N Nevada Ave- 5,412 0% $6,400,000 $1,18312/9/2020 5.5%

-5 4330 Mark Dabling Blvd1978 62,483 0% $4,160,200 $6712/10/2020 -

-6 211 W Cimarron St1986 24,179 0% $3,171,205 $13110/27/2020 -

-7 H&E Equipment Services1967 16,000 0% $2,600,000 $163

2401 Steel Dr6/18/2020 6.8%

-8 215 W Cimarron St1986 17,756 0% $2,328,795 $13110/27/2020 -

-9 4825-4847 Northpark Dr1969 30,594 0% $2,100,000 $693/18/2020 -

-10 7006 Space Village Ave2018 14,000 0% $2,100,000 $1507/1/2020 6.3%

-11 901 Synthes Ave1986 29,854 53.9% $2,025,000 $6812/2/2020 -

-12 Academy Carpet1978 25,048 0% $2,000,000 $80

3975 N Academy Blvd12/30/2020 -

-13 4625 Town Center Dr2001 12,303 0% $1,833,000 $1499/4/2020 8.0%

-14 1471 Woolsey Hts2020 10,000 0% $1,750,000 $17510/20/2020 -

-15 3315 Drennan Industrial…1978 35,568 0% $1,700,000 $485/26/2020 -

-16 4201 N Nevada Ave1957 19,756 0% $1,700,000 $869/22/2020 -

-17 2565-2585 Weston Rd1983 18,153 0% $1,670,000 $9211/12/2020 -

-18 310 S 14th St1981 8,809 65.9% $1,650,000 $1878/3/2020 -

-19 2005 Aeroplaza Dr2009 14,637 0% $1,612,500 $1108/25/2020 -

-20 1310-1328 Pecan St1985 21,175 18.9% $1,575,000 $7412/15/2020 -


1031464 Page 12

Colorado Springs IndustrialSALES PAST 12 MONTHS

EconomyColorado Springs Industrial

Initial unemployment claims in Colorado have climbedpast 550,000 since mid-March as the pandemic haswrought economic damage across job sectors,specifically in retail, leisure and hospitality, and energy.But the latest weekly jobless claims suggest the worst isin the rearview mirror. In the week ending on June 6, justunder 13,000 initial claims were filed for the secondstraight week. Continuing jobless claims as of May 23were at about 245,000, down from over 265,000 in theprior week.

Fiscal and monetary stimulus was quickly enacted toprovide a bridge for those impacted by the crisis, at leastin the short-term. The Governor's stay-at-home ordersexpired on April 26, although the counties of Denver,Broomfield, Adams, Arapahoe, and Jefferson extendedshelter-in-place orders through May 8.

Local officials are in agreement that the economy will bereopened in phases and social distancing policies willremain in place. The Governor stated that all retailestablishments will be allowed to offer curbside deliverystarting on April 27, and certain businesses will be able

to open on May 1 with some restrictions. On May 4,large workplaces were allowed to open at 50 percent ofcapacity, and are recommended to screen workersbefore they enter the workplace.

Employment growth in Colorado Springs outperformedthe national benchmark for a seventh straight year in2019. And at the end of 19Q4 jobs in the metro areawere growing at nearly twice the rate of the nationalaverage. Professional and Business Services, Educationand Health Services, and Natural Resources, Mining andConstruction were the fastest growing industries for jobs.

Colorado Springs' population growth was about 1.3% in2019, down from the roughly 2% gains from 2016-18.

Unlike Boulder and Denver, affordability was not been alimiting factor for apartment demand in Colorado Springsfor much of the last cycle.

Average asking apartment rents are a sizablediscount—more than 30%—from those in Denver, andBoulder, and 20% below the national average.

COLORADO SPRINGS EMPLOYMENT BY INDUSTRY IN THOUSANDS

NAICS Industry Jobs LQ MarketUS USMarketUSMarket

Current Level 12 Month Change 10 Year Change 5 Year Forecast

0.45%0.22%0.66%0.35%-3.69%-2.31%0.512Manufacturing

0.68%0.19%0.86%1.99%-3.22%1.47%0.846Trade, Transportation and Utilities

0.65%0.06%0.48%1.94%-2.80%2.97%1.134 Retail Trade

0.75%1.01%1.25%1.47%-1.25%-5.87%1.018Financial Activities

0.81%1.28%-0.25%1.10%-4.12%-3.47%1.253Government

1.16%0.17%2.54%4.92%-3.30%2.75%1.219Natural Resources, Mining and Construction

1.93%2.71%1.54%3.37%-4.09%-2.29%0.840Education and Health Services

1.65%-0.50%1.88%2.50%-4.59%5.90%1.251Professional and Business Services

2.15%0.38%0.05%-1.83%-6.01%-0.40%1.06Information

4.70%3.02%0.16%1.28%-20.21%-12.51%1.234Leisure and Hospitality

1.43%1.87%0.29%1.30%-7.01%-7.16%1.517Other Services

Total Employment 296 1.0 -2.12% -5.69% 1.93% 0.91% 1.11% 1.51%Source: Oxford Economics

LQ = Location Quotient


1031464 Page 13

Colorado Springs IndustrialECONOMY

EconomyColorado Springs Industrial

Source: Oxford Economics

YEAR OVER YEAR JOB GROWTH

DEMOGRAPHIC TRENDS

12 Month ChangeCurrent Level

Metro USMetro USDemographic Category

10 Year Change

Metro US Metro US

5 Year Forecast

Population 330,447,281756,946 1.1% 0.5% 1.5% 0.6% 1.1% 0.5%Households 123,521,273282,896 1.1% 0.4% 1.4% 0.7% 1.1% 0.5%Median Household Income $67,422$75,389 9.2% 6.0% 3.8% 3.0% 1.6% 2.1%Labor Force 161,401,250360,827 0.3% -1.8% 1.3% 0.5% 0.7% 0.7%Unemployment 9.0%6.5% 3.4% 5.4% -0.3% 0% - -


POPULATION GROWTH


LABOR FORCE GROWTH INCOME GROWTH


1031464 Page 14

Colorado Springs IndustrialECONOMY

SubmarketsColorado Springs Industrial

COLORADO SPRINGS SUBMARKETS


1031464 Page 15

Colorado Springs IndustrialSUBMARKETS

SubmarketsColorado Springs Industrial

SUBMARKET INVENTORY

12 Month Deliveries Under Construction

Bldgs SF (000) Percent Rank

Inventory

Bldgs SF (000) Percent RankBldgs SF (000) % Market RankSubmarketNo.

1 CBD 276 0.8% 8 0 - - -22 0 0 0% -2 Greater CBD 1,688 4.6% 6 0 - - -145 1 2 0.1% 33 North 5,472 15.0% 3 0 - - -313 0 0 0% -4 Northeast 3,291 9.0% 4 2 105 3.2% 2117 5 71 2.2% 25 Northwest 7,490 20.6% 2 0 - - -222 0 0 0% -6 Southeast 15,093 41.5% 1 2 4,030 26.7% 1932 8 89 0.6% 17 Southwest 2,795 7.7% 5 0 - - -196 0 0 0% -8 Teller County 291 0.8% 7 0 - - -22 0 0 0% -

SUBMARKET RENT

Growth

Market Rent

Per SFSubmarketNo.

12 Month Market Rent QTD Annualized Market Rent

RankRank GrowthRank

1 CBD -3.9%7 1.2% 5$8.39 42 Greater CBD -2.7%5 1.2% 7$9.06 23 North -7.0%8 2.0% 3$8.32 74 Northeast -5.0%1 2.2% 1$11.61 65 Northwest -37.6%6 2.2% 2$9.05 86 Southeast -1.7%4 1.2% 6$9.14 17 Southwest -4.2%3 0.5% 8$9.43 58 Teller County -3.0%2 1.3% 4$9.86 3

SUBMARKET VACANCY & NET ABSORPTION

12 Month Absorption

Rank Construc. Ratio

Vacancy

SF % of InvSF PercentSubmarketNo. Rank

1 CBD - - -0 0% --2 Greater CBD 27,889 1.7% 0.36,774 0.4% 323 North 220,350 4.0% -(129,003) -2.4% 844 Northeast 363,883 11.1% -(120,450) -3.7% 775 Northwest 685,195 9.1% -127,387 1.7% 266 Southeast 457,284 3.0% 0.2268,259 1.8% 137 Southwest 202,582 7.2% -(41,247) -1.5% 658 Teller County 2,649 0.9% -(2,649) -0.9% 51


1031464 Page 16

Colorado Springs IndustrialSUBMARKETS

Supply & Demand TrendsColorado Springs Industrial

OVERALL SUPPLY & DEMAND

Net AbsorptionInventory

% of Inv Construction RatioSF SF Growth % Growth SFYear

2025 884,099 2.1% 1.7%737,700 1.243,411,2542024 856,384 2.1% 1.8%744,811 1.142,527,1552023 821,952 2.0% 1.5%605,281 1.441,670,7712022 424,695 1.1% 0.1%40,155 10.640,848,8192021 4,028,047 11.1% 10.4%4,217,588 1.040,424,124YTD 0 0% 0.2%76,930 036,396,0772020 164,104 0.5% 0.1%49,258 3.336,396,0772019 33,121 0.1% 2.3%833,346 036,231,9732018 326,873 0.9% 2.5%914,803 0.436,198,8522017 122,084 0.3% 0.3%106,738 1.135,871,9792016 65,160 0.2% -0.6%(225,565) -35,749,8952015 192,240 0.5% -0.1%(30,649) -35,684,7352014 179,691 0.5% 1.5%519,041 0.335,492,4952013 (750,703) -2.1% -0.6%(223,730) -35,312,8042012 348,733 1.0% 1.7%602,560 0.636,063,5072011 24,035 0.1% 1.2%421,392 0.135,714,7742010 28,524 0.1% 1.8%651,363 035,690,7392009 121,779 0.3% -0.9%(326,411) -35,662,215

SPECIALIZED INDUSTRIAL SUPPLY & DEMAND



2025 6,829 0.1% -0.1%(8,289) -10,237,0682024 7,142 0.1% -0.1%(5,956) -10,230,2392023 6,829 0.1% 0%1,928 3.510,223,0972022 3,436 0% 0.2%19,226 0.210,216,2682021 (888) 0% -0.1%(10,102) -10,212,832YTD 0 0% 0%(1,875) -10,213,7202020 37,075 0.4% 2.6%262,691 0.110,213,7202019 0 0% 1.0%104,528 010,176,6452018 0 0% 1.9%190,063 010,176,6452017 38,165 0.4% -0.1%(5,156) -10,176,6452016 0 0% 1.5%150,409 010,138,4802015 (26,350) -0.3% -2.2%(224,863) -10,138,4802014 149,023 1.5% 1.8%178,564 0.810,164,8302013 0 0% 0.6%61,486 010,015,8072012 0 0% -0.1%(8,997) -10,015,8072011 0 0% 1.2%124,280 010,015,8072010 0 0% 1.4%136,678 010,015,8072009 0 0% 0.2%15,740 010,015,807


1031464 Page 17

Colorado Springs IndustrialSUPPLY & DEMAND TRENDS

Supply & Demand TrendsColorado Springs Industrial

LOGISTICS SUPPLY & DEMAND



2025 854,371 3.4% 2.8%738,874 1.226,054,3022024 825,404 3.4% 2.9%739,149 1.125,199,9312023 792,254 3.4% 2.4%589,298 1.324,374,5272022 409,498 1.8% 0.1%29,105 14.123,582,2732021 4,031,900 21.1% 18.0%4,172,162 1.023,172,775YTD 0 0% 0.4%78,805 019,140,8752020 117,029 0.6% 0.4%72,373 1.619,140,8752019 (66,879) -0.4% 2.1%403,598 -19,023,8462018 326,873 1.7% 2.6%500,491 0.719,090,7252017 78,978 0.4% -1.0%(193,249) -18,763,8522016 65,160 0.3% -1.4%(261,106) -18,684,8742015 218,590 1.2% 1.7%311,516 0.718,619,7142014 30,668 0.2% 1.3%245,872 0.118,401,1242013 27,698 0.2% 1.4%262,988 0.118,370,4562012 145,969 0.8% 2.3%421,863 0.318,342,7582011 24,035 0.1% 1.3%245,633 0.118,196,7892010 26,124 0.1% 2.3%419,218 0.118,172,7542009 107,142 0.6% -0.9%(162,104) -18,146,630

FLEX SUPPLY & DEMAND



2025 22,899 0.3% 0.1%7,115 3.27,119,8842024 23,838 0.3% 0.2%11,618 2.17,096,9852023 22,869 0.3% 0.2%14,055 1.67,073,1472022 11,761 0.2% -0.1%(8,176) -7,050,2782021 (2,965) 0% 0.8%55,528 -7,038,517YTD 0 0% -- -7,041,4822020 10,000 0.1% -4.1%(285,806) -7,041,4822019 100,000 1.4% 4.6%325,220 0.37,031,4822018 0 0% 3.2%224,249 06,931,4822017 4,941 0.1% 4.4%305,143 06,931,4822016 0 0% -1.7%(114,868) -6,926,5412015 0 0% -1.7%(117,302) -6,926,5412014 0 0% 1.4%94,605 06,926,5412013 (778,401) -10.1% -7.9%(548,204) -6,926,5412012 202,764 2.7% 2.5%189,694 1.17,704,9422011 0 0% 0.7%51,479 07,502,1782010 2,400 0% 1.3%95,467 07,502,1782009 14,637 0.2% -2.4%(180,047) -7,499,778


1031464 Page 18

Colorado Springs IndustrialSUPPLY & DEMAND TRENDS

Rent & VacancyColorado Springs Industrial

OVERALL RENT & VACANCY

Market Rent

Per SF Index % Growth Vs Hist PeakYear

Vacancy

SF Percent Ppts Chg

2025 151 1.8% 12.9%$10.44 2,778,065 6.4% 0.2%2024 149 2.2% 10.9%$10.25 2,634,181 6.2% 0.1%2023 145 3.2% 8.5%$10.04 2,525,183 6.1% 0.4%2022 141 4.0% 5.1%$9.72 2,310,873 5.7% 0.9%2021 136 1.1% 1.1%$9.35 1,926,710 4.8% -0.8%YTD 134 -0.1% -0.1%$9.24 1,959,832 5.4% -0.2%2020 134 1.7% 0%$9.25 2,036,762 5.6% 0.3%2019 132 4.2% -1.6%$9.10 1,921,916 5.3% -2.2%2018 126 5.6% -5.6%$8.73 2,722,141 7.5% -1.7%2017 120 5.3% -10.6%$8.26 3,313,959 9.2% 0%2016 114 3.9% -15.1%$7.85 3,298,613 9.2% 0.8%2015 110 3.7% -18.3%$7.56 3,007,888 8.4% 0.6%2014 106 5.0% -21.2%$7.29 2,784,999 7.8% -1.0%2013 101 3.4% -24.9%$6.94 3,124,349 8.8% -1.3%2012 97 1.5% -27.4%$6.72 3,651,322 10.1% -0.8%2011 96 0.5% -28.4%$6.62 3,905,149 10.9% -1.1%2010 95 -2.4% -28.8%$6.59 4,302,506 12.1% -1.8%2009 98 -2.2% -27.0%$6.75 4,925,345 13.8% 1.2%

SPECIALIZED INDUSTRIAL RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2025 157 2.0% 13.4%$10.51 548,717 5.4% 0.1%2024 154 2.3% 11.2%$10.30 533,902 5.2% 0.1%2023 150 3.4% 8.7%$10.07 521,139 5.1% 0%2022 145 4.0% 5.2%$9.74 516,498 5.1% -0.2%2021 140 1.1% 1.1%$9.36 532,316 5.2% 0.3%YTD 138 -0.1% -0.1%$9.25 504,674 4.9% 0%2020 138 1.3% 0%$9.26 502,799 4.9% -2.2%2019 136 3.9% -1.2%$9.15 728,415 7.2% -1.0%2018 131 4.9% -5.0%$8.80 832,943 8.2% -1.9%2017 125 7.2% -9.4%$8.39 1,023,006 10.1% 0.4%2016 117 3.6% -15.4%$7.83 979,685 9.7% -1.5%2015 113 3.7% -18.4%$7.56 1,130,094 11.1% 2.0%2014 109 5.3% -21.3%$7.29 931,581 9.2% -0.4%2013 103 3.3% -25.2%$6.93 961,122 9.6% -0.6%2012 100 1.8% -27.6%$6.70 1,022,608 10.2% 0.1%2011 98 0.9% -28.9%$6.59 1,013,611 10.1% -1.2%2010 97 -2.1% -29.5%$6.53 1,137,891 11.4% -1.4%2009 99 -0.5% -28.0%$6.67 1,274,569 12.7% -0.2%


1031464 Page 19

Colorado Springs IndustrialRENT & VACANCY

Rent & VacancyColorado Springs Industrial

LOGISTICS RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2025 153 1.9% 13.5%$10.13 1,296,552 5.0% 0.3%2024 150 2.2% 11.4%$9.95 1,183,030 4.7% 0.2%2023 147 3.3% 9.0%$9.73 1,098,758 4.5% 0.7%2022 142 4.1% 5.5%$9.42 897,659 3.8% 1.6%2021 136 1.3% 1.3%$9.05 517,578 2.2% -1.0%YTD 135 -0.1% -0.1%$8.93 534,504 2.8% -0.4%2020 135 1.6% 0%$8.93 613,309 3.2% 0.2%2019 133 3.9% -1.6%$8.79 568,653 3.0% -2.5%2018 128 5.8% -5.2%$8.46 1,039,130 5.4% -1.0%2017 121 4.6% -10.4%$8.00 1,216,636 6.5% 1.4%2016 115 4.0% -14.3%$7.65 944,409 5.1% 1.7%2015 111 3.9% -17.6%$7.35 618,143 3.3% -0.5%2014 107 5.4% -20.7%$7.08 711,069 3.9% -1.2%2013 101 4.2% -24.8%$6.72 926,273 5.0% -1.3%2012 97 1.8% -27.8%$6.45 1,161,563 6.3% -1.6%2011 96 0.4% -29.0%$6.34 1,437,457 7.9% -1.2%2010 95 -2.5% -29.4%$6.31 1,659,055 9.1% -2.2%2009 98 -2.5% -27.6%$6.47 2,052,149 11.3% 1.4%

FLEX RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2025 141 1.5% 10.4%$11.35 932,796 13.1% 0.2%2024 139 1.8% 8.9%$11.19 917,249 12.9% 0.1%2023 136 2.7% 6.9%$10.99 905,286 12.8% 0.1%2022 133 3.4% 4.1%$10.70 896,716 12.7% 0.3%2021 128 0.6% 0.6%$10.35 876,816 12.5% -0.6%YTD 127 -0.4% -0.4%$10.24 920,654 13.1% 0%2020 127 2.4% 0%$10.28 920,654 13.1% 4.2%2019 124 5.8% -2.4%$10.04 624,848 8.9% -3.4%2018 118 6.1% -7.7%$9.49 850,068 12.3% -3.2%2017 111 4.7% -13.0%$8.94 1,074,317 15.5% -4.3%2016 106 3.7% -16.9%$8.54 1,374,519 19.8% 1.7%2015 102 3.2% -19.9%$8.23 1,259,651 18.2% 1.7%2014 99 3.3% -22.4%$7.98 1,142,349 16.5% -1.4%2013 96 1.3% -24.9%$7.72 1,236,954 17.9% -1.2%2012 94 0.3% -25.8%$7.62 1,467,151 19.0% -0.3%2011 94 0.2% -26.0%$7.60 1,454,081 19.4% -0.7%2010 94 -2.5% -26.1%$7.59 1,505,560 20.1% -1.2%2009 96 -3.5% -24.2%$7.79 1,598,627 21.3% 2.6%


1031464 Page 20

Colorado Springs IndustrialRENT & VACANCY

Sale TrendsColorado Springs Industrial

OVERALL SALES

Completed Transactions (1)

Turnover Avg Price/SFDeals VolumeYear

Market Pricing Trends (2)

Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate

2025 -- - -- 196- $121.14 7.6%2024 -- - -- 192- $118.55 7.6%2023 -- - -- 187- $115.25 7.7%2022 -- - -- 179- $110.64 7.7%2021 -- - -- 169- $104.56 7.8%YTD -- - -- 169- $104.12 7.9%2020 $127.8M90 4.1% $113.58$2,128,915 1627.4% $99.88 7.8%2019 $123.1M117 4.7% $100.71$1,734,060 1616.8% $99.44 7.9%2018 $139M108 6.3% $76.60$2,058,352 1517.4% $92.98 8.0%2017 $79.2M89 5.1% $75.78$1,484,093 1448.3% $89.07 7.9%2016 $111.3M98 5.1% $68.85$1,640,843 1358.4% $83.31 8.0%2015 $78.6M109 5.9% $64.37$1,018,676 1308.9% $80.16 8.1%2014 $80.9M82 5.7% $41.82$1,135,495 1208.4% $74.24 8.4%2013 $51.7M99 4.0% $47.99$828,102 1108.2% $68.14 8.7%2012 $63.9M81 3.2% $81.90$1,338,555 1097.4% $67.60 8.7%2011 $43.6M56 2.5% $55.71$1,103,410 1009.4% $61.76 9.2%2010 $42.1M68 4.0% $37.19$867,956 959.0% $58.39 9.6%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

SPECIALIZED INDUSTRIAL SALES





2025 -- - -- 185- $110.70 7.8%2024 -- - -- 181- $108.19 7.8%2023 -- - -- 176- $105.02 7.8%2022 -- - -- 168- $100.69 7.9%2021 -- - -- 159- $95.16 8.0%YTD -- - -- 158- $94.79 8.1%2020 $25.5M14 4.0% $110.09$2,838,200 1488.0% $88.82 7.9%2019 $32.6M20 4.6% $94.89$2,967,255 1517.3% $90.40 8.1%2018 $12.2M14 2.4% $66.58$1,527,188 1418.3% $84.21 8.2%2017 $22.6M19 4.0% $64.19$1,736,753 1386.9% $82.71 8.0%2016 $23.1M24 5.5% $46.82$1,650,059 1308.5% $77.70 8.1%2015 $14M15 2.5% $57.89$1,272,364 1268.1% $75.38 8.1%2014 $14.1M15 3.3% $45.52$1,083,849 117- $70.17 8.4%2013 $11.8M19 4.0% $48.24$1,176,000 109- $65.19 8.7%2012 $19.1M11 1.5% $133.56$2,370,723 1117.5% $66.22 8.6%2011 $14.3M13 2.4% $61.42$1,433,220 101- $60.30 9.1%2010 $13.6M11 3.7% $39.40$1,505,000 95- $56.85 9.5%



1031464 Page 21

Colorado Springs IndustrialSALE TRENDS

Sale TrendsColorado Springs Industrial

LOGISTICS SALES





2025 -- - -- 201- $124.64 7.6%2024 -- - -- 196- $121.92 7.6%2023 -- - -- 191- $118.49 7.6%2022 -- - -- 183- $113.68 7.7%2021 -- - -- 173- $107.29 7.8%YTD -- - -- 172- $106.70 7.9%2020 $87.4M55 4.7% $117.34$2,241,787 1667.3% $103.17 7.8%2019 $50.5M79 3.9% $91.95$1,030,650 1646.8% $102.08 7.9%2018 $70.4M75 6.1% $87.58$1,584,488 1547.2% $95.49 7.9%2017 $35.1M51 4.5% $83.23$1,124,570 1469.2% $90.90 7.9%2016 $76M62 5.8% $77.23$1,683,681 1378.0% $84.98 8.0%2015 $48.3M77 8.5% $68.34$925,634 1329.3% $81.83 8.0%2014 $20.6M47 2.4% $52.74$535,354 1229.0% $75.57 8.4%2013 $27.2M60 2.9% $61.26$649,856 1118.2% $69.14 8.7%2012 $39.7M57 4.7% $74.17$1,213,775 1107.4% $68.25 8.7%2011 $21M30 2.7% $50.57$1,017,484 1009.0% $62.24 9.2%2010 $18.9M46 2.9% $48.27$614,620 959.0% $58.81 9.6%


FLEX SALES





2025 -- - -- 197- $124.76 7.5%2024 -- - -- 193- $122.46 7.5%2023 -- - -- 189- $119.41 7.6%2022 -- - -- 182- $115.06 7.6%2021 -- - -- 172- $109.20 7.7%YTD -- - -- 172- $109.14 7.8%2020 $14.8M21 2.6% $100.10$1,148,409 1667.3% $105.04 7.7%2019 $40M18 7.1% $121.39$3,634,240 1646.6% $103.83 7.8%2018 $56.3M19 12.7% $68.15$4,149,959 154- $97.41 7.9%2017 $21.6M19 8.3% $79.21$2,357,502 1467.3% $92.28 7.8%2016 $12.1M12 2.7% $87.79$1,383,750 1368.9% $85.95 8.0%2015 $16.3M17 4.1% $59.82$1,164,936 1298.8% $81.57 8.1%2014 $46.2M20 17.8% $37.44$2,309,333 1207.7% $75.78 8.4%2013 $12.8M20 6.9% $32.73$1,160,000 109- $69.11 8.7%2012 $5.1M13 1.9% $50.15$729,355 107- $67.47 8.8%2011 $8.3M13 2.1% $61.69$905,963 9810.0% $62.31 9.2%2010 $9.5M11 6.9% $24.21$1,069,625 94- $59.26 9.6%



1031464 Page 22

Colorado Springs IndustrialSALE TRENDS

OUR NETWORK IS YOUR EDGE.All information is from sources deemed reliable and is subject to errors,omissions, change of price, rental, prior sale, and withdrawal without notice. Prospect should carefully verify each item of information contained herein.

PREPARED BY:

RD Trinidad Owner

Hoff & Leigh | 1259 Lake Plaza Drive | Colorado Springs, CO 80906 | 719.630.2277 office www.hoffleigh.com/colorado-springs

INDUSTRIAL MARKET REPORT Q4 2020Colorado Springs, CO

RECENT INDUSTRIAL TRANSACTIONS

COLORADO SPRINGS AGENTS

716 Clark Place$2,700 / Month (+ Utilities)

SIZE TERMS2,400 SF FOR LEASE

2610 Delta Drive$1,295,000

SIZE TERMS5,495 SF FOR SALE

3305 N Hancock AvenueNegotiable

SIZE TERMS2,500 SF FOR LEASE

GUY COXBROKER [email protected]

TONY WHITEBROKER [email protected]

CHRIS MYERSBROKER [email protected]

RD [email protected]

TIM [email protected]

HOLLY TRINIDADMANAGING [email protected]

RICK NELSONBROKER [email protected]

STEVE LEIGHSR BROKER [email protected]

JAYME WILSONBROKER [email protected]

BARBARA LEIGHBROKER [email protected]

KLETE KELLERBROKER [email protected]

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INDUSTRIAL MARKET REPORT Q4 2020 - Hoff & Leigh

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