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CBRE <br />MARKETVI EW <br />Minneapolis/St. Paul Industrial, Q2 2015 <br />Development and Absorption <br />Strong Again in Q2 2015 <br />Vacancy Rate <br />5.0% <br />Lease Rate <br />55.11 PSF <br />Net Absorption <br />1,319,678 SF <br />Under Construction <br />2,805,964 SF <br />Figure 1: Historical Net Absorption vs Vacancy Rate *Arrows indicate change from previous quarter. <br />Net Absorption Sq. Ft. (MSF) Vacancy Rate (%) <br />8 <br />4 <br />2 <br />0 <br />(2) <br />(4) <br />ii <br />8 <br />7 <br />6 <br />5 <br />ii 4 <br />2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD <br />01 02 Q3 Q4 — Total Annual Net Absorption (L) —Vacancy Rate (R) <br />Source: CBRE Research, 022015. <br />• The 1,319,678 sq. ft. of net absorption in Q2 2015 <br />is the highest single quarter total since Q4 2013, <br />65% of the total resulted from one transaction. <br />• The largest deal in the past decade in the <br />Minneapolis/St. Paul market occurred in Q2 2015 <br />with Polaris occupying 870,000 sq. ft. of space in <br />Shakopee, MN. <br />• According to CBRE Research, there is roughly 16.5 <br />million sq. ft. of planned/scheduled construction <br />being considered across the metro. <br />MARKET OVERVIEW <br />3 <br />2 <br />1 <br />0 <br />The Minneapolis/St. Paul Industrial Market showed <br />no signs of losing steam in Q2 2015 following a <br />healthy first quarter. With the highest level of <br />product completed in Q1 2015 since the first quarter <br />of 2001, the construction and increased supply are <br />keeping up with the demand for industrial product. <br />Q2 2015 CBRE Research © 2015 CBRE, Inc. 1 1 <br />