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Phoenix . Q1 2013Your partner in commercial real estate

Mark Detmer, SIOR, CCIMManaging Director+1 602 282 6289Cell +1 602 448 0900mark.detmer@am.jll.com

'99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '162,000,000

2,250,000

2,500,000

2,750,000

3,000,000

3,250,000

3,500,000

3,750,000

4,000,000

4,250,000

4,500,000

4,750,000

5,000,000

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

Population Ind RBA

Phoenix Metropolitan AreaPopulation Growth vs. Industrial RBA 1999 – 2016 Forecast

Source: U.S. Bureau of Census, Moody’s Analytics, Jones Lang LaSalle Research

Forecast

Population (in thousands)

Industrial RBA(in thousands)

5.4 millionsquare feet

100,000people

=+354,100 people

+19 million square feet

'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '160

250

500

750

1,000

1,250

1,500

1,750

2,000

Total Industrial All Other Forecast

+170,000 jobs

+76,600 industrialjobs

Phoenix Metropolitan AreaTotal Employment – Non-Farm Jobs Count from 1990 – 2016 Forecast

Source: U.S. Bureau of Labor Statistics, Moody’s Analytics, Jones Lang LaSalle Research

30%Industrial Employment

Jobs (in thousands)

'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13

-5,000

-2,500

0

2,500

5,000

7,500

10,000

12,500

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

15.2%16.3%

15.2%

11.6%

7.1%6.3%

7.2%

4.8%

7.2% 7.5% 7.6%8.6%

9.6% 10.3%9.0%

7.2% 7.1%

9.0%

13.7%

16.5%15.2%

12.7%11.5% 11.1%

2.2%

-0.3%1.1%

4.9%6.6% 7.2% 7.3%

5.4% 5.4%4.6%

3.5%

1.2%0.0%

1.5%

3.9%

6.2%5.4%

1.7%

-2.5%

-7.9%

-1.9%

1.5%2.4% 1.7%

Completions Absorption Vacancy Job Growth

Phoenix Metropolitan AreaIndustrial Completions & Net Absorption vs. Market Vacancy & Job Growth

Source: Jones Lang LaSalle Research

Square Feet (in thousands)

Market vital statistics

Population Historic average yearly job growth

Historic average vacancy

Historic average yearly absorption

Historic average yearly development

4,339,600 2.5% 10.4% 4.4M 5.3M

Phoenix Metropolitan AreaIndustrial Developments

Construction in progress (100,000 s.f.+)

FAB 42 (Intel Corporation)

1,000,000 s.f. – est. delivery Q1 2013

Estrella Logistics Center

593,600 s.f. – est. delivery Q2 2013

Living Spaces

435,000 s.f. – est. delivery Q2 2014

Southwest Products

164,000 s.f. – est. delivery Q4 2013

TJX Distribution – ProLogis Park

1,200,000 s.f. – est. delivery Q2 2013

Coldwater Depot Logistics Center

600,000 s.f. – est. delivery Q2 2013

ProLogis Park Riverside

486,000 s.f. – est. delivery Q2 2013

4550 Watkins Street

313,600 s.f. – est. delivery Q2 2013

Intel Chandler

285,000 s.f. – est. delivery Q3 2014

43rd Avenue Logistics Center

394,775 s.f. – est. delivery Q4 2013

Project Green Box

130,000 s.f. – Delivered Q1 2013

Elliot Business Park Building 5

158,000 s.f. – Delivered Q1 2013

Elliot Business Park – Building 6

158,000 s.f. – Delivered Q1 2013

Construction completed – First Quarter 2013

5.5 millionsquare feet under construction

Image Not Available

Phoenix Metropolitan AreaTenants in the Market

9 4 5 5 1 1

2Q | 2013 3Q | 2013 4Q | 2013 1Q | 2014 2Q | 2014 3Q | 2014 4Q | 2014 1Q | 2015

1,464,000 sf 1,325,000 sf 1,975,000 sf 2,140,000 sf

0 0

530,000 sf750,000 sf

16.4 millionCurrently tracking

square feet of requirements

Absorption Forecast

Preliminary Search

32%Actively Touring

32%Proposals Out

24%Lease Negotiations

12%

Requirement Status