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CBRE <br />Minneapolis/St. Paul Industrial, Q1 2020 <br />Industrial market posts strong 1st <br />quarter ahead of uncertainty <br />0 Vacancy Rate <br />4.4% <br />NNN Asking Rate <br />$6.55 per sq. ft. <br />Under Construction Net Absorption <br />3.1 million sq. ft. 0 567,945 sq. ft. <br />Figure 1: Quarterly Net Absorption vs. Vacancy Rate with Annual Net Absorption <br />Net Absorption Sq. Ft. (MSF) <br />6 <br />5 <br />3 <br />2 <br />*Arrows indicate change from previous quarter. <br />Vacancy Rate <br />8 <br />2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 <br />Q1 Q2 Q3 04 — Total Annual Net Absorption (L) Vacancy Rate <br />Source: CBRE Research, Q1 2020. <br />Q1 2020 net absorption of 567,945 sq. ft. <br />continued the robust pace of 2019, and <br />vacancy remained low at 4.4% <br />Construction completions for Q1 2020 totaled <br />329,186 sq. ft. including 229,186 sq. ft. of <br />spec space, with 3.1 million sq. ft. under <br />construction <br />• The Prologis acquisition of the 22-building, <br />2.53 million sq. ft. Liberty Property Trust <br />portfolio reflected investors' continued interest <br />in the Minneapolis market <br />MARKET OVERVIEW <br />The industrial market in Minneapolis/St. Paul <br />closed Q1 2020 with 567,945 sq. ft. of <br />absorption, continuing the strong performance <br />over recent quarters. Construction completions <br />in the quarter totaled 329,186 sq. ft. including <br />229,186 sq. ft. of spec space. An additional 3.1 <br />million sq. ft. are under construction. Strong <br />demand has kept vacancy relatively steady since <br />2017. <br />7 <br />6 <br />4 <br />3 <br />2 <br />0 <br />Q1 2020 CBRE Research © 2020 CBRE, Inc. I 1 <br />