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CBRE <br />Figure 2: Annual Net Absorption and Deliveries vs. Vacancy Rate <br />Absorption and Deliveries (MSF) <br />6 <br />5 <br />4 <br />3 <br />2 <br />1 <br />0 <br />Direct Vacancy (%) <br />9.0 <br />2010 2011 2012 2013 2014 2015 2016 <br />Source: CBRE Research, 01 2020 <br />MARKET OVERVIEW, CONTINUED <br />2017 2018 <br />Net Absorption Deliveries Vacancy <br />Absorption outpaced deliveries, following the trend <br />over the past four years, and vacancy held steady at <br />4.4%. <br />TRANSACTION ACTIVITY <br />With 3.4 million sq. ft. of transaction activity, the <br />Northwest led all other submarkets by a large <br />margin, carrying 49% of the market total for Q1. <br />Lease renewals of more than 200,000 sq. ft. each by <br />Cardinal Health and MVP Logistics led the way, but <br />several other deals in the Northwest exceeded <br />100,000 sq. ft. Minneapolis r,— <br />7.5 <br />6.0 <br />4.5 <br />3.0 <br />1.5 <br />0.0 <br />2019 2020 YTD <br />Figure 3: Top Transactions by Sq. Ft. in Submarket <br />1% <br />Aveda signed a 187,238 sq. ft. renewal and Delkor <br />signed a renewal/expansion of 133,524 sq. ft. in the <br />North Central submarket, and Cherne announced <br />plans to build a new 130,000 sq. ft. headquarters in <br />the Southwest submarket. <br />Figure 4: Top Lease Transactions <br />Midway <br />4% <br />Southwest <br />9%0 <br />Source: CBRE Research, 01 2020 <br />Tenant <br />Size (Sq. Ft.) Address Submarket Transaction Type <br />Cardinal Health <br />222,000 <br />9000109th Av N <br />Northwest <br />Renewal <br />MVP Logistics <br />213,249 <br />14600 N 21 sr Av <br />Northwest <br />Renewal <br />Aveda <br />187,238 3860 Pheasant Ridge Dr North Central Renewal <br />Delkor <br />133,524 4300 NW Round Lake Rd North Central Renewal/Expansion <br />Cherne 130,000 NEQ Hwy 169/Johnson Mem Dr Southwest New Lease <br />Source: CBRE Research, Q1 2020. <br />Q1 2020 CBRE Research <br />© 2020 CBRE, Inc. I 2 <br />