Fourth Quarter 2013 • Contra Costa, Solano, Napa • General Industrial • Warehouse • R&D

WALNUT CREEK OFFICE 1333 N. California Boulevard, Suite 343 • Walnut Creek, CA 94596

Tel: 925.974.0100 • Fax: 925.974.0123

www.ccareynkf.com

Fourth Quarter 2013

The Cornish & Carey Commercial Newmark Knight Frank Pleasanton Quarterly Report is based on a quarterly survey of competitive Warehouse,

General Industrial and R&D buildings. The data included in this report incorporates not only space presently available on the market, but also space

that we have been led to believe will come onto the market in the next ninety days.

Information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its

accuracy, but make no guarantee, warranty or representation about it. All information should be verified prior to lease or purchase.

TABLE OF CONTENTS

Coverage Map 1

Introduction 2

Market Overview 3

Market Statistics By City 6

Market Statistics By Area 7

Market Statistics By Product Type 8

Market Statistics Graphical Data 9

Market Statistics Historical Data 10

Market Highlights 12

Agent Roster 13

Who We Are 14

Definitions and Methods for Calculation

General Industrial: Buildings with a combination of limited dock high loading, grade level doors, less than ±20’ clear height, and/or a

mixed use of manufacturing, warehousing and distribution.

Warehouse: Buildings with a combination of multiple dock high loading positions, limited or no grade level doors, minimum

±20’ clear height, and a primary or historical use of warehousing and distribution of product.

R&D: Higher image buildings with a combination of greater than 3 per 1,000 SF parking, more extensive glass lines to

accommodate higher office area build out, and a primary or historical use of production, lab, and/or office areas.

Our method for calculating statistical figures:

1. Absorption and vacancy is reflected once the space or building is actively marketed as available and could be made available for

occupancy within 90 days, not when the tenant physically moves out. This removes any confusion when a company may have a

phased move or if they only stay in a portion of a space or building.

2. All asking rates are quoted on a Triple Net (NNN) basis for ease of comparison. The rates are the average asking rents, as given

by the respective landlords in each market.

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COVERAGE MAP

Fourth Quarter 2013

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INTRODUCTION

January 22, 2014

We are pleased to present to you our Fourth Quarter 2013 Industrial Market Report. As you are aware, this information

summary keeps you abreast of significant transactions, construction activity, vacancy, and sale/lease rates. As the

premier brokerage company serving Contra Costa, Solano, and Napa Counties, we are here to accommodate a variety of

your real estate needs from leasing and sale transactions, to renewals and helping both landlords and tenants lower

operating expenses to become more efficient.

Should you have interest in more detail relative to significant transactions mentioned in this report or how our team can

help your company, please do not hesitate to call us.

Sincerely,

Jeff Fritch Tyler Epting Graden Travis Kevin Beaumonte Associate Vice President Senior Vice President Associate

Lic #01857956 Lic #01317533 Lic #00871716 Lic #01941161 jfritch@ccareynkf.com tepting@ccareynkf.com gtravis@ccareynkf.com kbeaumonte@ccareynkf.com

T. 925.974.0118 T. 925.974.0238 T. 925.974.0104 T. 925.974.0116

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NORTH I-680 MARKET OVERVIEW

he calendar turns to 2014 and we kick off the New Year with wind in our sails. A rejuvenated economy has provided businesses with the confidence and resources to grow, which has translated to eight consecutive quarters of positive net absorption

throughout Contra Costa, Solano and Napa counties. Total net absorption of industrial space in the three counties for 2013 was 2,279,401 SF. The fourth quarter accounted for 153,149 SF of positive absorption, a slowdown compared to previous quarters, We suspect this is due more to lack of available product than to a large drop off in demand. With vacancy now sitting at 7.25% and quality spaces, especially over 20k square feet, at a premium, tenants must project their growth earlier than in years past.

The year 2013 stood as another remarkable year for Industrial Real Estate in the North I-680 Corridor. Central Contra Costa, which includes the cities of Concord, Martinez, Pleasant Hill, and Pacheco, saw positive absorption of 405,714 square feet during the year. This leasing activity further depressed vacancy in the area in all product types and submarkets. Concord started 2012 with an overall vacancy rate of 15.11%, Two years and 711,313 square feet of positive absorption later, the vacancy rate for Concord sits at 6.89% which includes a three percent drop in 2013 alone. Pretty respectable for a small suburban market.

As far as leasing activity is concerned, the second quarter of the year was the most active, with deals such as NOV Wilson (25,200 SF), Industrial Valco (19,528 SF) and the California Insurance Exchange (38,000 SF) accounting for part of the 213,247 SF of absorption experienced in the quarter. Other notable deals during the year were Dresser Rand’s leasing of 12,101 SF at 5159 Commercial Circle in December, ETech Construction lease of 20,239 SF at 1910 Mark Court in April, and Tap Master’s leasing of 16,000 SF at 5060 Forni Drive in November.

Contra Costa County

Asking rents continued to push higher across the region and strike-price rents followed as markets shifted towards the landlord in almost every category. Average Industrial gross rents have not quite hit the elusive $1.00/SF range, but they came within reach during the year as supply continued to fall. In Concord, we ended 2013 with average gross asking rates in the $.90 - $.95 range for typical industrial product. More significantly, strike prices, the price at which deals are actually being done, are only a few pennies off of where landlords are asking. In the past a tenant could expect to see 10-20 listings in their desired size range, today the typical tour package for prospective tenants has four to eight properties, and it is common for good spaces to have more than one tenant competing for them. Consequently, the extravagant free rent, tenant improvement and other leasing incentives that we saw during the recession are substantially less prevalent than they were.

Activity in the building sales area slowed slightly in 2013. Among the causes for this were rising interest rates, very shallow supply levels, and elevated prices. This being said, quality buildings are selling, with prices approaching the previously absolute high water mark set in 2007-2008. A year-over-year comparison in Central Contra Costa sales activity shows that, in 2012 we recorded thirteen industrial sales with an average sales price of $91/SF. In 2013, there were eleven industrial sales, averaging $128/SF. This represents a 40% increase in the average price per square foot for building sales in 2013. Among the buyers we saw in 2013 were West Harland Ervin Partners, who purchased 15,000 SF at 4064 Pike Lane; Marc Paul, Inc., who purchased 30,000 SF at 4090 Pike Lane; and Gagne Brothers, who bought 11,000 SF at 1077 Shary Circle, also in Concord.

Two things must happen before we see much further appreciation in sales prices. First, rents need to push over $1.00/SF gross. Plodding rent growth is by far the most important factor that is keeping prices stationary. Although building prices have spiked in the last two years, over 40% in most of our markets, rents have not kept pace with building prices. The fact is that until tenants feel a lack of comfort with the lease terms they are being offered we will not see a significant flight into the building ownership arena. The second factor that would help tremendously to spur sale activity is a drop in interest rates. Unfortunately, all signs point to economic expansion and stationary or rising interest rates in 2014.

T

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Eastern Contra Costa, which includes the cities of Pittsburg, Antioch, Oakley and Brentwood, saw a pickup in activity in 2013. Although the activity was not as dramatic as in Central Contra Costa, the area did manage to drop vacancy by more than a percent in 2013, finishing at a reasonably healthy 11.39%. Warehouse asking rents, which were at bottom-of-the-barrel lows of around $.10/SF, NNN at the beginning of 2013, doubled and ended at $.20/SF, NNN at the end of the year.

Antioch and Pittsburg saw a few notable building sales during the year. Olivia Garden International purchased 28,750 SF at 2805 Verne Roberts Circle in the Delta Business Park in early October. In addition, there were three other sales in the Delta Business Park that ranged from 4,000-9,600 SF. Sierra Pacific Properties purchased a bank-owned, 19,350 SF property at 529 Garcia Avenue in September they have rehabbed and brought to the market as a lease opportunity. Suites in this building range from 2,100 SF on up and the asking rents are $.65/SF, Industrial Gross, a significant discount for tenants in Concord who have been hit by rising rents.

With still suppressed leasing rates and sales prices, we expect that Eastern Contra Costa is poised to rebound well in 2014 and could really take off in 2015. The Highway 4 expansion is scheduled to be completed in summer of 2015; the eBART light rail extension of BART is fully funded and is scheduled for completion in 2015 as well. Congestion problems that plague the area will be radically mitigated with these infrastructure improvements and we expect many companies who have previously written the area off will once again look East to lease or buy industrial real estate. East Contra Costa has vast tracts of land, good power and water infrastructure, a quality labor pool and low-cost housing. If you add “good access to the Bay Area” to this equation, you have a winning formula for success when it comes to industrial real estate.

Solano County

Over the last year the Solano County industrial market has accounted for 1,248,254 SF of positive net absorption. Driven by the food and beverage industries, Solano has seen the strongest recovery; it also had the most to ground to make up after the recession. Current vacancy lies at 8.16% throughout the county, with the warehouse market in Fairfield being the most competitive to find space with a vacancy of only 4.03%. We expect this number to drop even further from the deals we are seeing in the pipeline.

New construction in Fairfield’s Solano Business Park has added 318,000 square feet of warehouse inventory to the market with the built-to-suit warehouse for Encore Glass being constructed by Buzz Oates. More development is planned in this same area south of Cordelia Road, including two additional warehouses by Buzz Oates for another glass company, Saxco International. This will include a 473,000 square foot building due to be completed by the end of 2014, and a smaller warehouse to be built on the other side of the Encore Glass facility as the second phase for Saxco. DBI Beverage, a beverage distributor, purchased 2449 S. Watney Way from Lowenberg Corporation. They will relocate their warehouse and beer distribution operation from Lopes Road. Also during the year, Guala Closures leased 11,300 SF at 2300 S. Watney Way. The wine closure manufacturer will be expanding their Northern California operation from their Napa office. Solano County has continued to benefit from the strength of the wine industry long with limited availability of space and rising rents in Napa that have driven tenants east to Fairfield.

In Benicia, previously mentioned Saxco Glass leased the warehouse portion of 5001 Industrial Way, totaling approximately 180,000 SF, while their new warehouse facility in Fairfield is being constructed by Buzz Oates. Activity in the Benicia market was slow otherwise during the quarter but positive overall for the year with 313,569 of positive net absorption.

Vacaville had an equally impressive recovery totaling 342,969 SF of positive net absorption as major tenants for the market such as Pacific Cycle expanded their warehouse operations in the business park. Other spaces which were once leased on a month-to-month basis were leased long term. Companies such as ICON Aircraft are looking at Vacaville as a viable base of operations due to its ability to pull in employees from multiple labor pools (Sacramento and the Bay Area) while remaining highly competitive with their warehouse rents.

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Napa County

Napa County experienced 581,436 SF of positive absorption over the last twelve months driving vacancy down to 2.80%. There is nearly no significant available space in the Napa warehouse market (0.61% vacancy) which has been the case over the past two quarters. E&P Properties completed the last new building in 2012 and they are on track to complete the next new development in Napa with their project on Technology Way which will consist of 103,000 square feet of warehouse space.

Safe Harbor Wine Storage purchased a 2.97 acre vacant parcel on Technology Way earlier this year and is nearing completion of their bulk wine storage building. Lowenberg Corporation purchased a four building portfolio from LBA Realty in the Napa Commons (formerly the Napa Valley Corporate Park) that totaled approximately 220,873 SF. The buildings were fully leased at the time of the sale and further expanded Lowenberg Corporation’s already significant presence in the Napa industrial market. In one of the largest recent transactions, the County of Napa purchased the Mylan Specialty campus to relocate the county’s Health and Human Services Department. The Napa County was previously considering a $78 million dollar expansion at their Old Sonoma Road campus that would have included purchasing additional land, relocating offices into leased space, and phased construction over years. The 359,100 SF four building campus in the Napa Commons provided a cost effective option that would also provide a more immediate solution the department’s growing space needs. Meanwhile, the seller was able to sell the property only weeks after the site ceased operations and was fully decommissioned, as well as achieve the maximum price without selling the property to a competitor in the pharmaceutical or biotech industry.

We expect that 2014 will continue the positive trends we have witnessed, though in a more metered, modest fashion. Local businesses will continue their organic growth, consequently leasing adjacent spaces or pushing into the market looking for larger, more suitable business quarters. We should also see more companies looking to expand into the market from other areas, as they take advantage of the region’s centralized location to service the East, South and North Bay areas. Rents will continue to push upwards as competition heightens, and we should start to see some planning for speculative construction. We might even see more shovels hitting dirt within the year if we are lucky.

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NORTH I-680 INDUSTRIAL MARKET STATISTICS

By City

City/Use No of Bldgs

Total Rentable SF

Vacancy %

Overall Direct Sublease

Availability (SF)

Overall Direct Sublease

Net Absorption

(SF)

Avg Asking Rate

(NNN) ANTIOCH R&D 4 136,460 4.17% 4.17% 0.00% 5,684 5,684 0 0 $0.90 General Industrial 58 1,869,803 14.92% 14.92% 0.00% 278,895 278,895 0 6,410 $0.85 Warehouse 7 790,100 19.96% 19.96% 0.00% 157,665 157,665 0 181,285 $0.28 TOTAL 69 2,796,363 15.81% 15.81% 0.00% 442,244 442,244 0 187,695 $0.65 PITTSBURG R&D 1 24,500 48.62% 48.62% 0.00% 11,911 11,911 0 0 $1.00 General Industrial 113 4,548,636 3.99% 3.99% 0.00% 181,568 181,568 0 (11,572) $0.43 Warehouse 5 757,825 38.25% 16.87% 21.38% 289,866 127,837 162,029 (289,866) $0.39 TOTAL 119 5,330,961 9.07% 6.03% 3.04% 483,345 321,316 162,029 (301,438) $0.42 CONCORD R&D 35 1,194,466 10.38% 10.38% 0.00% 123,994 123,994 0 10,965 $0.80 General Industrial 299 6,716,600 5.30% 5.08% 0.22% 355,805 341,105 14,700 48,446 $0.74 Warehouse 10 763,491 15.42% 15.42% 0.00% 117,730 117,730 0 (78,853) $0.73 TOTAL 344 8,674,557 6.89% 6.72% 0.17% 597,529 582,829 14,700 (19,442) $0.75 MARTINEZ/PACHECO R&D 11 330,001 48.19% 48.19% 0.00% 159,015 159,015 0 7,483 $0.84 General Industrial 94 2,558,540 1.53% 1.53% 0.00% 39,239 39,239 0 4,630 $0.83 Warehouse 7 407,140 13.37% 13.37% 0.00% 54,436 54,436 0 0 $0.69 TOTAL 112 3,295,681 7.67% 7.67% 0.00% 252,690 252,690 0 12,113 $0.81 PLEASANT HILL R&D 2 25,296 0.00% 0.00% 0.00% 0 0 0 0 - General Industrial 23 419,970 3.42% 3.42% 0.00% 14,345 14,345 0 0 $0.84 Warehouse 1 20,000 0.00% 0.00% 0.00% 0 0 0 0 - TOTAL 26 465,266 3.08% 3.08% 0.00% 14,345 14,345 0 0 $0.84 BENICIA R&D 5 138,876 6.64% 6.64% 0.00% 9,216 9,216 0 0 $0.53 General Industrial 119 2,705,945 4.07% 4.07% 0.00% 110,023 110,023 0 4,257 $0.48 Warehouse 60 5,384,591 14.42% 11.71% 2.71% 776,513 630,713 145,800 200,240 $0.50 TOTAL 184 8,229,412 10.88% 9.11% 1.77% 895,752 749,952 145,800 204,497 $0.50 FAIRFIELD R&D 45 1,428,014 14.73% 14.73% 0.00% 210,333 210,333 0 (3,330) $1.00 General Industrial 74 1,619,667 8.78% 7.43% 1.35% 142,236 120,356 21,880 (8,309) $0.54 Warehouse 65 8,430,998 4.03% 4.03% 0.00% 352,526 352,526 0 76,143 $0.48 TOTAL 184 11,478,679 5.98% 5.79% 0.19% 705,095 683,215 21,880 64,504 $0.65 VACAVILLE R&D 13 318,805 28.13% 28.13% 0.00% 89,677 89,677 0 5,123 $0.85 General Industrial 22 634,266 14.68% 14.68% 0.00% 93,080 93,080 0 (28,321) $0.78 Warehouse 34 4,743,966 6.63% 6.63% 0.00% 314,605 315,605 0 8,562 $0.42 TOTAL 69 5,697,037 8.73% 8.73% 0.00% 497,362 497,362 0 (14,636) $0.57 AMERICAN CANYON R&D 0 0 0.00% 0.00% 0.00% 0 0 0 0 - General Industrial 40 1,060,117 4.45% 4.45% 0.00% 47,171 47,171 0 0 $0.59 Warehouse 19 4,592,915 0.00% 0.00% 0.00% 0 0 0 0 $0.00 TOTAL 59 5,563,032 0.83% 0.83% 0.00% 47,171 47,171 0 0 $0.59 NAPA R&D 37 1,387,536 7.22% 7.22% 0.00% 100,203 100,203 0 (21,547) $1.20 General Industrial 108 2,751,654 5.75% 5.54% 0.21% 158,156 152,391 5,765 15,755 $0.77 Warehouse 20 2,716,358 1.65% 0.97% 0.68% 44,714 26,280 18,434 25,648 $0.75 TOTAL 165 6,855,548 4.42% 4.07% 0.35% 303,073 278,874 24,199 19,856 $0.91

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NORTH I-680 INDUSTRIAL MARKET STATISTICS

By Area

Area/Use No of Bldgs

Total Rentable SF

Vacancy % Overall Direct Sublease

Availability (SF)

Overall Direct Sublease

Net Absorption

(SF)

Avg Asking Rate

(NNN) EAST CONTRA COSTA COUNTY (Antioch, Pittsburg) R&D 5 160,960 10.93% 10.93% 0.0% 17,595 17,595 0 0 $0.97 General Industrial 171 6,418,439 7.17% 7.17% 0.00% 460,463 460,463 0 (5,162) $0.68 Warehouse 12 1,547,925 28.91% 18.44% 10.47% 447,531 285,502 162,029 (108,581) $0.35 TOTAL 188 8,127,324 11.39% 9.39% 1.99% 925,589 763,560 162,029 (113,743) $0.53 CENTRAL CONTRA COSTA COUNTY (Concord, Martinez, Pacheco, Pleasant Hill) R&D 48 1,549,763 18.26% 18.26% 0.00% 283,009 283,009 0 18,448 $0.83 General Industrial 416 9,695,110 4.22% 4.07% 0.15% 409,389 394,689 14,700 53,076 $0.75 Warehouse 18 1,190,631 14.46% 14.46% 0.00% 172,166 172,166 0 (78,853) $0.72 TOTAL 482 12,435,504 6.95% 6.83% 0.12% 864,564 849,864 14,700 (7,329) $0.77 SOLANO COUNTY (Benicia, Fairfield, Vacaville) R&D 63 1,885,695 16.40% 16.40% 0.00% 309,226 309,226 0 1,793 $0.94 General Industrial 215 4,959,878 6.96% 6.52% 0.44% 345,339 323,459 21,880 (32,373) $0.59 Warehouse 159 18,559,555 7.65% 6.88% 0.77% 1,443,644 1,297,844 145,800 284,945 $0.48 TOTAL 437 25,405,128 8.16% 7.51% 0.65% 2,098,209 1,930,529 167,680 254,365 $0.56 NAPA COUNTY (American Canyon, Napa) R&D 37 1,387,536 7.22% 7.22% 0.00% 100,203 100,203 0 (21,547) $1.20 General Industrial 148 3,811,771 5.39% 5.24% 0.15% 205,327 199,562 5,765 15,755 $0.73 Warehouse 39 7,309,273 0.61% 0.36% 0.25% 44,714 26,280 18,434 25,648 $0.75 TOTAL 224 12,508,580 2.80% 2.61% 0.19% 350,244 326,045 24,199 19,856 $0.87 NORTH I-680/SOLANO/NAPA MARKET R&D 153 4,983,954 14.25% 14.25% 0.00% 710,033 710,033 0 (1,306) $0.93 General Industrial 950 24,885,198 5.71% 5.54% 0.17% 1,420,518 1,378,173 42,345 31,296 $0.69 Warehouse 228 28,607,384 7.29% 6.16% 1.13% 2,108,055 1,781,792 326,263 123,159 $0.48 TOTAL 1,331 58,476,536 7.21% 6.58% 0.63% 4,238,606 3,869,998 368,608 153,149 $0.62

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NORTH I-680 INDUSTRIAL MARKET HIGHLIGHTS

By Product Type

City No of Bldgs

Total Rentable SF

Vacancy %

Overall Direct Sublease

Availability (SF)

Overall Direct Sublease

Net Absorption

(SF)

Avg Asking Rate

(NNN) GENERAL INDUSTRIAL

Antioch 58 1,869,803 14.92% 14.92% 0.00% 278,895 278,895 0 6,410 $0.85 Pittsburg 113 4,548,636 3.99% 3.99% 0.00% 181,568 181,568 0 (11,572) $0.43 Concord 299 6,716,600 5.30% 5.08% 0.22% 355,805 341,105 14,700 48,446 $0.74 Martinez/Pacheco 94 2,558,540 1.53% 1.53% 0.00% 39,239 39,239 0 4,630 $0.83 Pleasant Hill 23 419,970 3.42% 3.42% 0.00% 14,345 14,345 0 0 $0.84 Benicia 119 2,705,945 4.07% 4.07% 0.00% 110,023 110,023 0 4,257 $0.48 Fairfield 74 1,619,667 8.78% 7.43% 1.35% 142,236 120,356 21,880 (8,309) $0.54 Vacaville 22 634,266 14.68% 14.68% 0.00% 39,080 93,080 0 (28,321) $0.78 American Canyon 40 1,060,117 4.45% 4.45% 0.00% 47,171 47,171 0 0 $0.59 Napa 108 2,751,654 5.75% 5.54% 0.21% 158,156 152,391 5,765 15,755 $0.77

TOTAL 950 24,885,198 5.71% 5.54% 0.17% 1,420,518 1,378,173 42,345 31,296 $0.69 WAREHOUSE

Antioch 7 790,100 19.96% 19.96% 0.00% 157,665 157,665 0 181,285 $0.28 Pittsburg 5 757,825 38.25% 16.87% 21.38% 289,866 127,837 162,029 (289,866) $0.39 Concord 10 763,491 15.42% 15.42% 0.00% 117,730 117,730 0 (78,853) $0.73 Martinez/Pacheco 7 407,140 13.37% 13.37% 0.00% 54,436 54,436 0 0 $0.69 Pleasant Hill 1 20,000 0.00% 0.00% 0.00% 0 0 0 0 - Benicia 60 5,384,591 14.42% 11.71% 2.71% 776,513 630,713 145,800 200,240 $0.50 Fairfield 65 8,430,998 4.03% 4.03% 0.00% 352,526 352,526 0 76,143 $0.48 Vacaville 34 4,743,966 6.63% 6.63% 0.00% 314,605 314,605 0 8,562 $0.42 American Canyon 19 4,592,915 0.00% 0.00% 0.00% 0 0 0 0 $0.00 Napa 20 2,716,358 1.65% 0.97% 0.68% 44,714 26,280 18,434 25,648 $0.75

TOTAL 228 28,607,384 7.29% 6.16% 1.13% 2,108,055 1,781,792 326,263 123,159 $0.48 R&D

Antioch 4 136,460 4.17% 4.17% 0.00% 5,684 5,684 0 0 $0.90 Pittsburg 1 24,500 48.62% 48.62% 0.00% 11,911 11,911 0 0 $1.00 Concord 35 1,194,466 10.38% 10.38% 0.00% 123,994 123,994 0 10,965 $0.80 Martinez/Pacheco 11 330,001 48.19% 48.19% 0.00% 159,015 159,015 0 7,483 $0.84 Pleasant Hill 2 25,296 0.00% 0.00% 0.00% 0 0 0 0 - Benicia 5 138,876 6.64% 6.64% 0.00% 9,216 9,216 0 0 $0.53 Fairfield 45 1,428,014 14.73% 14.73% 0.00% 210,333 210,333 0 (3,330) $1.00 Vacaville 13 318,805 28.13% 28.13% 0.00% 89,677 89,677 0 5,123 $0.85 Napa 37 1,387,536 7.22% 7.22% 0.00% 100,203 0 0 (21,547) $1.20

TOTAL 153 4,983,954 14.25% 14.25% 0.00% 710,033 710,033 0 (1,306) $0.93

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NORTH I-680 INDUSTRIAL MARKET STATISTICS – GRAPHS

Available Square Footage By Area & Use

Average Asking Rates (NNN)

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NORTH I-680 INDUSTRIAL HISTORICAL MARKET STATISTICS

Contra Costa County Historical Vacancy Rates vs. Asking Rent (NNN)

Solano County Historical Vacancy Rates vs. Asking Rent (NNN)

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NORTH I-680 INDUSTRIAL HISTORICAL MARKET STATISTICS

Napa County Historical Vacancy Rates vs. Asking Rent (NNN)

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Significant Second Half 2013 Lease Transactions (Including Renewals)

Tenant Lessor Address City Use Size (SF)

Saxco International Buzz Oates Development Solano Logistics Center Fairfield WH 473,000

Saxco International 5001 LLC 5001 Industrial Way Benicia WH 180,000

Bond Manufacturing LNR Properties 2180 Wilbur Lane Antioch WH 117,000

Biagi Brothers Jack & Sylvia Dudum Trust 700 Hanna Drive American Canyon WH 109,282

Blu Homes Lennar Mare Island Mare Island Vallejo WH 103,000

Bruni Glass S&S Supply 2750 Maxwell Way Fairfield WH 88,686

Johnson Burners Eric B. Benson 5160 Fulton Drive Fairfield GI 59,320

BioCare Medical LBA Realty 4040-4044 Pike Lane Concord GI 21,840

NuWest IndCor Properties 1910 Mark Court Concord WH 20,000

Top It Off Bottling HF Hillman 201 Devlin Road Napa WH 19,783

Wine Consolidators Jack & Sylvia Dudum Trust 700 Hanna Drive American Canyon WH 19,600

Guala Closures Hofmann Holdings LP 2300 S. Watney Way Fairfield WH 11,300

(R) = Renewal (E) = Expansion (D) = Downsize (S) = Sublease

Significant Second Half 2013 Sale Transactions

Buyer Seller Address City Use Size (SF)

County of Napa Mylan Specialty 2751 Napa Valley Corporate Dr. Napa R&D 359,100

Live Oak Equities LLC Whal Properties 21 & 37 Executive Way Napa WH 314,168

Lowenberg Corporation LBA Realty 2511, 2531, 2545, 2557 Napa Valley Corporate Dr.

Napa WH 220,873

PB&J Acq. JV MKD Investments Creekside Gateway Bus Park 435-445 Devlin Road & 222-240 Gateway Road West

Napa R&D 78,260

DBI Beverage Lowenberg Corporation 2449 S. Watney Way Fairfield WH 59,843

2805 Verne Roberts Circle, Antioch Solano Logistics Center, Fairfield 2751 Napa Valley Corporate Drive, Napa

Olivia Garden International purchased 28,750 SF located at 2805 Verne Roberts Circle in Antioch to house their world headquarters. The Seller in the transaction was FJM Investments out of San Francisco who purchased this building and nineteen other free standing and condo properties in the Delta Business Park in December of 2012.

Buzz Oates Development is currently con-structing a 318,000 SF distribution warehouse for Encore Glass in the Solano Business Park. A 473,000 SF building and 177,000 SF building are also planned for Saxco International ware-house glass bottles for the local food and beverage industry.

Mylan Specialty sold their four-building 359,100 SF campus to the City of Napa. The site included an office building as well as: R&D, manufacturing, lab and warehouse. Cornish & Carey Commericial NKF represented the seller in this transaction.

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AGENT ROSTER

INDUSTRIAL DIVISION

Walnut Creek Office Oakland/Emeryville/Richmond I-880 Corridor 1333 N. California Blvd., Suite 343 Walnut Creek, CA 945596 Tel: 925.974.0100 Fax: 925.974.0123

James BoharLic #00803991 510.923.6201 jbohar@ccareynkf.com

Chet BarneyLic #01111364 510.300.0204 cbarney@ccareynkf.com

Tom WolfmanLic #01408989 510.300.0209 twolfman@ccareynkf.com

www.ccareynkf.com

Contra Costa/Solano/Napa

Jim Clark Lic #00926308 510.923.6247 jclark@ccareynkf.com

Richard BlandLic #01179303 510.300.0221 rbland@ccareynkf.com

North Bay Graden Travis Lic #00871716 925.974.0104 gtravis@ccareynkf.com

Shawn KleinLic #01426551 510.923.6209 sklein@ccareynkf.com

Dan DowdLic #01432679 510.300.0223 ddowd@ccareynkf.com

Mark CarringtonLic #01219528 415.526.7650 mcarrington@ccareynkf.com

Tyler Epting Lic #01317533 925.974.0238 tepting@ccareynkf.com

Jeff Lahr Lic #01296493 510.923.6208 jlahr@ccareynkf.com

Joe FabianLic #01013902 510.300.0211 jfabian@ccareynkf.com

David DaaneLic #01273579 707.583.8431 ddaane@ccareynkf.com

Jeff Fritch Lic #01857956 925.974.0118 jfritch@ccareynkf.com

Thomas SouthernLic #01808807 510.923.9158 tsouthern@ccareynkf.com

Steve Kapp, SIORLic #01069911 510.300.0213 skapp@ccareynkf.com

Kevin FosterLic #00915709 707.583.8437 kfoster@ccareynkf.com

Kevin Beaumonte Lic #01941161 925.974.0116 kbeaumonte@ccareynkf.com

William ThomasLic #01745655 510.923.9155 wthomas@ccareynkf.com

Paul Mueller, SIORLic #00896726 510.300.0216 pmueller@ccareynkf.com

Dennis Plehn, SIORLic #00799202 707.583.8426 dplehn@ccareynkf.com

Tri-Valley

David ScarpinatoLic #01809074 510.300.0203 dscarpinato@ccareynkf.com

Preston SmithLic #00429862 707.583.8419 psmith@ccareynkf.com

Andrew Zink Lic #01767586 925.467.0907 azink@ccareynkf.com

Zachary SmithLic #01860469 510.300.0210 zsmith@ccareynkf.com

Dave Bruzzone Lic #01360224 925.467.0910 dbruzzone@ccareynkf.com

Michael SpiroLic #01433395 510.300.0212 mspiro@ccareynkf.com

14

N O R T H E R N C A L I F O R N I A E X P E R T I S E W I T H I N A D Y N A M I C G L O B A L P L A T F O R M

A Global Leader in Commercial Real Estate

Newmark Knight Frank is one of the largest real estate service firms in the world. We provide comprehensive real estate solutions to many of the most prominent corporations, property owners, investors, and developers across the globe.

Newmark Knight Frank and London based partner Knight Frank operate from more than 340 offices in established and emerging property markets on six continents. With over 11,000 employees worldwide, we have created a dynamic global platform from which to serve the property needs of our growing list of clients.

Strategic Thinking, Effective Execution

Newmark Knight Frank offers a full-service platform for our clients — whether corporate or institutional, multinational or local — developing real estate strategies that enhance and support their business objectives. Building from our leasing advisory roots, the firm has consistently focused on expanding our service lines in order to optimally meet the changing needs of our clients. Today, our integrated services platform provides a single source solution for every phase of occupying or owning a property, from planning, design, construction, and initial occupancy to ongoing cost-efficient management. We combine operational expertise with real estate to assist clients in managing their real estate operations and portfolios by creating and executing long and short term strategic plans with the goals of reducing occupancy costs, increasing efficiency, and maximizing value.