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FIGURES I MINNEAPOLIS INDUSTRIAL 1 032022 Absorption,Vacancy, and Construction FIGURE 4:Historic Construction Activity and Percentage of Buildings Pre-Leased In 03,the Minneapolis industrial market absorbed 2.6 million sq.ft.,bringing the 2022 year-to-date SF(Millions) total up to 6.2 million sq.ft.The Northwest and East submarkets experienced the strongest positive 9 100% absorption with 1.1 million sq.ft.and 573,971 sq.ft. respectively.Following such strong activity, vacancy rates this quarter dropped to 3%,a decrease of 50 basis points year-over-year. 8 90% There are currently 8.9 million sq.ft.of new industrial development under construction in the 7 80% Minneapolis market.Of that,69% is speculative development with 37% percent pre-leased.Several large speculative projects underway include the 1M sq.ft.Cubes at French Lake in Dayton,the 6 70% Cottage Grove Logistics Park 2,and the I-94 East Logistics Center in Woodbury. 60% In 03,there was 2 million sq.ft.of new construction delivered including the 610 Broadway Business 5 Center in Brooklyn Park,Arbor Lakes Business Park III in Maple Grove, Chaska Creek 1,and the 50% Nordeast Business Center in Minneapolis. 4 40% FIGURE 2:Current Construction by Submarket FIGURE 3:Speculative and Built-To-Suit Under Construction 3 ° 30/° Sq. Ft. (Millions) 2 I 20% 9 8 1 10% 6 , 1 1 0 5 0 0 0 0 y y y ti ti ti ti 4 tioti yoti yoti Doti Doti Doti tioti tioti tioti tioti tioti 3 ati ati a� a° a� ati a� a° ati ati 6 2 1 0 oo-O 9 0220211 Ql,202° 01?971 0.112021 032022 Under Construction Completed Construction Average%Pre-Leased i Northwest ■Southwest ■North Central —Speculative ■Bult-to-Suit South Central ■East Source:CBRE Research,03 2022. Source:CBRE Research,03 2022. Source:CBRE Research,Q3 2022. 2 CBRE RESEARCH ©2022 CBRE,INC.