3rd Qtr 2010 Market Stats

WAREHOUSE & DISTRIBUTION CENTER TRANSACTIONS

(July 2010-September 2010)

Transaction/Client Name City State Size

Undisclosed Tenant (L) University Park IL 1,350,000True Value Co. (R) Harvard IL 1,213,373Private Investor (I) Chicago IL 683,700Jacobson Shorewood IL 507,187Midwest Air Technologies Romeoville IL 506,777Hosley International Inc. (R)(L) Portage IN 376,000JIT Packaging (L) Schaumburg IL 304,800Jel Sert Aurora IL 304,482Liquid Container (R) Sturtevant WI 300,400California Cartage (L) Alsip IL 284,356Target Corp. Chicago IL 281,736Madison Warehouse Joliet IL 266,680HOBO Bridgeview IL 254,425American Tire McCook IL 233,669Treasures Media Inc. Mt. Pleasant WI 210,870Weber Stephens Products Co. (L) Elgin IL 174,315Dynamic Manufacturing Corp. (L) Hillside IL 173,000Siwin Channahon IL 167,282International Transload Logistics Elwood IL 160,000McCollister’s Transportation Group West Chicago IL 150,000Offi ce Depot Inc. (R)(L) Lansing IL 141,904Allegheny Technologies Bolingbrook IL 138,741Wismarq Corp. (R) Franklin Park IL 111,588Supervalu (R) Franklin Park IL 109,102FedEx Elk Grove Village IL 104,619Private Investor (I)(L) Bolingbrook IL 102,936Rapid Pallets Bridgeview IL 101,140Supreme Lobster & Seafood Co. Bolingbrook IL 101,088Cloud Packaging Solutions LLC Des Plaines IL 98,500Chicago Sustainable Mfg. Center Chicago IL 93,650Colour Concepts Elk Grove Village IL 93,380The Rock Spot Chicago IL 92,859Chamberlain Industries (R) Addison IL 74,819Logoplaste Plainfi eld IL 73,726Glentronics Inc. Lincolnshire IL 71,556Nextep Inc. Bolingbrook IL 71,400Schnidt Cartage Inc. (R)(L) Hanover Park IL 68,208Reusable Container Co. (R) Bolingbrook IL 64,101

(R) Renewal (L) Lee & Associates Transaction (I) Investment

Visit us at www.lee-associates.com

Industrial Market ReportChicagoChicago

Q3 2010

Lee & Associates Chicago - Industrial Market Report

QUARTER IN REVIEW

CENTRAL DUPAGE INDUSTRIAL

CENTRAL KANE INDUSTRIAL

NORTH CHICAGO INDUSTRIAL

ABSORPTION

VACANCY

ASKING RENTS

ABSORPTION

VACANCY

ASKING RENTS

ABSORPTION

VACANCY

ASKING RENTS

HISTORICAL VACANCY RATES

The vacancy rate decreased slightly this quarter due to building sales in Elmhurst and Oak Brook and leases in Lombard.


The vacancy rate remained the same this quarter. Smaller spaces came on the market in St. Charles and West Chicago.


The vacancy rate decreased this quarter due to several sales and leases under 50,000 SF.

The Central DuPage submarket includes Downers Grove, Elmhurst, Glen Ellyn, Lombard, Oak Brook, Oakbrook Terrace, Villa Park, and Wheaton.

The Central Kane Industrial submarket is comprised of both manufacturing and distribution companies. This market has always been attractive to manufacturing companies due to the low cost of power in towns such as Batavia, Geneva, and St. Charles. This market also off ers a strong and aff ordable labor forct along with low DuPage County and Kane County property taxes. Over the last several years, as expansion has pushed westward, numerous developments in this market have absorbed a large portion of available land parcels which, in turn, has pushed land and building prices on an upward trend. This submarket off ers excellent access to I-88 as well as a number of major throughfares such as Route 64, Route 59, and Route 31.

The North Chicago submarket has the following boundaries: North-Devon Avenue; South-I-290; East-Lake Shore Drive; West-Cumberland Avenue.

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Q4 2009 Q1 2010 Q2 2010 Q3 2010

8.8%8.2%

7.9%

8.3%

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Q4 2009 Q1 2010 Q2 2010 Q3 2010

13.0% 13.5% 12.4%12.4%

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Q4 2009 Q1 2010 Q2 2010 Q3 2010

10.2% 10.3% 10.4%10.5%

2

Q3 2010


QUARTER IN REVIEW

SOUTH CHICAGO INDUSTRIAL

I-55 NORTH CORRIDOR INDUSTRIAL

I-55 SOUTH CORRIDOR INDUSTRIAL

ABSORPTION

VACANCY

ASKING RENTS

ABSORPTION

VACANCY

ASKING RENTS

ABSORPTION

VACANCY

ASKING RENTS


The vacancy rate increased this quarter due to a number of spaces over 100,000 SF coming on the market.


The vacancy rate decreased this quarter due to several leas-es over 100,000 SF in Bridgeview and McCook.


The vacancy rate increased slightly this quarter due to sev-eral spaces coming on the market in Bolingbrook, Rome-oville and Woodridge.

The South Chicago Submarket is a large and diverse submarket that consists of a wide variety of facility types by both age and functionality. There continues to be strong demand for functional buildings with good highway access. Demand generally decreases as you get further away from downtown Chicago, especially along I-94 and I-57. Most users in this submarket are located there because they heavily service the downtown market and because of the abundant labor supply. There has been, and will continue to be, signifi cant redevelopment in this submarket; older manufacturing facilities are being redeveloped for more functional industrial uses, converted to residential or modifi ed for another commercial use (self-storage, retail, etc…).

The North I-55 Corridor Submarket is entirely in Cook County and consists primarily of manufacturing and distribution facilities built between 1960 and 1980. Most of the users in this submarket are located there because of the abundant labor supply. Although many users have moved out of the submarket, absorption has always been strong and new users continue to move in mainly from Chicago proper. The submarket itself has very little undeveloped land which has most recently led to facility teardowns and the construction of new, high cubed, warehousing facilities in their places. With great access to Chicago, I-55, I-294 and reasonable taxes for Cook County, demand in this submarket has remained stable.

The South I-55 Corridor Submarket generally consists of newer “big box” distribution facilities, with most being developed over the past ten years. With the proximity to major expressways and the ability to reach nine states overnight, the Corridor is widely recognized as the distribution hub of the Midwest. The I-55 Corridor off ers low taxes and an excellent labor force. Most of the product is institutionally owned and highly sought after in the investment arena.

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Q4 2009 Q1 2010 Q2 2010 Q3 2010

9.6% 9.9%

10.6%10.3%

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Q4 2009 Q1 2010 Q2 2010 Q3 2010

15.8%14.9% 14.7%

15.1%

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Q4 2009 Q1 2010 Q2 2010 Q3 2010

13.4% 13.5% 13.3%13.2%

3

Q1 2009

Q1 2009

Q3 2010


QUARTER IN REVIEW

I-88 CORRIDOR INDUSTRIAL

JOLIET AREA INDUSTRIAL

LAKE COUNTY INDUSTRIAL

ABSORPTION

VACANCY

ASKING RENTS

ABSORPTION

VACANCY

ASKING RENTS

ABSORPTION

VACANCY

ASKING RENTS


The vacancy rate decreased this quarter due to several leases and sales in Aurora including the 304,482 SF sale to Jel Sert.


The vacancy rate decreased slightly this quarter due to several deals over 100,000 SF in Elwood, Shorewood and Channahon.


The vacancy rate decreased this quarter due to several deals under 50,000 SF.

The I-88 Corridor Submarket has a high concentration of properties that are located in both DuPage and Kane County. This submarket consists of both manufacturing and modern “big box” distribution centers, most of which off er immediate access to I-88. The majority of the development has taken place between the 1970’s to the present. The I-88 Corridor continues to attract companies that are looking for aff ordable buildings, available land sites, a strong labor force and property tax relief from Cook County. This submarket also off ers excellent access to all major expressway systems in the greater Chicagoland area.

The Joliet area industrial submarket generally consists of older manufacturing facilities and newer “big box” distribution facilities that have recently been developed. The Joliet area has seen increased interest from developers because of low land costs and the lack of land in neighboring submarkets. The Joliet area will see substantial growth in the years to come. Along with excellent proximity to major expressways the Joliet area also off ers an excellent labor force.

Vacancy rates have climbed to substantially since last quarter primarily due to the impact of the soft economy and downturn in the housing markets. We have seen some uneasiness due to the stress in the credit markets, and the Lake County Industrial Real Estate market activity remains only moderate.

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Q4 2009 Q1 2010 Q2 2010 Q3 2010

15.5% 14.9% 14.5%15.0%

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

22.0

Q4 2009 Q1 2010 Q2 2010 Q3 2010

19.5%20.0%

19.3%19.9%

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Q4 2009 Q1 2010 Q2 2010 Q3 2010

11.8%12.7% 13.4%

13.6%

4

Q3 2010


QUARTER IN REVIEW

MCHENRY COUNTY INDUSTRIAL

NORTH COOK INDUSTRIAL

NORTH DUPAGE INDUSTRIAL

ABSORPTION

VACANCY

ASKING RENTS

ABSORPTION

VACANCY

ASKING RENTS

ABSORPTION

VACANCY

ASKING RENTS


The vacancy rate decreased this quarter due to sales and leases in Algonquin, Cary and Lakemoor.


The vacancy rate increased this quarter due to a number of spaces coming on the market in Niles and Northbrook.


The vacancy rate increased this quarter due to several spaces coming on the market in Addison, Carol Stream and Glendale Heights.

The McHenry Submarket includes the cities of Crystal Lake, Harvard, McHenry, and Woodstock.

The North Cook submarket is defi ned as I-294 on the west, Sheridan Road on the east, Lake Cook Road on the north and Devon Avenue on the south. Typically, this submarket sees strong activity from users in the 30,000 to 70,000 square foot range, the majority of which are entrepreneurial and own their facility.

The North DuPage submarket is generally comprised of newer distribution facilities, the majority of which have been developed over the past fi fteen (15) years. This market has attracted many light manufacturers and assembly operations as well. In addition to owners/users, this submarket remains highly sought after by institutional owners who maintain a very strong presence here. Many facilities off er modern “big box” amenities such as exterior docks, ESFR sprinkler systems, 30’ warehouse clearance and abundant parking. These benefi ts combined with lower property taxes have lured many companies from the nearby O’Hare and Cook County submarkets.

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Q4 2009 Q1 2010 Q2 2010 Q3 2010

9.2%10.1%

8.4%9.3%

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Q4 2009 Q1 2010 Q2 2010 Q3 2010

7.2%7.7%

8.6%8.2%

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Q4 2009 Q1 2010 Q2 2010 Q3 2010

11.7%12.1%

13.1%12.9%

5

Q3 2010


QUARTER IN REVIEW

NORTH KANE INDUSTRIAL

NORTHWEST COOK INDUSTRIAL

O’HARE INDUSTRIAL

ABSORPTION

VACANCY

ASKING RENTS

ABSORPTION

VACANCY

ASKING RENTS

ABSORPTION

VACANCY

ASKING RENTS


The vacancy rate decreased this quarter due to several deals in Elgin including the 174,315 SF lease to Weber Ste-phens Products Company.


The vacancy rate decreased this quarter due to several leases in Wheeling and Schaumburg including a 304,800 SF lease to JIT Packaging.


The vacancy rate remained the same this quarter.

The North Kane submarket had historically attracted owner/operators of manufacturing /assembly and value added production operations. Over the past 5-10 years this submarket has experienced tremendous growth primarily along the Randall Road corridor at I-90. Seven (7) new business parks have been developed to accommodate the continued growth of existing user profi les as well as modern high cube warehouse/distribution requirements. This submarket will continue to fl ourish due to the long term availability of vacant land, low Kane County real estate taxes, and a diversifi ed labor force.

The Northwest Cook Submarket is mainly comprised of three diff erent product types: industrial distribution facilities located close to I-90; manufacturing facilities; and fl ex/offi ce service center facilities primarily located in Northern Schaumburg and Mount Prospect. Due to higher Cook County taxes companies that have heavier distribution needs have opted to relocate to Kane and DuPage counties where “big box” facilities are more prevalent. Most of the industrial buildings have higher offi ce percentages and lower ceiling clearances averaging to be 18’ feet. Northwest Cook also benefi ts from having one the largest base of fl ex/offi ce service center facilities in the Chicagoland area. Many companies are attracted to the Northwest Cook area due to its location, at the intersection of two major arterial expressways I-90 and I-355/RT 53, and its proximity to O’Hare airport.

The next 24 months will prove critical for the O’Hare submarket with regards to industrial market sales and lease values. If vacancy levels remain rleatively high, we project it to remain a “tenants’ market”. However should vacancy levels decrease, we recommend tenants should aggressively pursue new space or consider renewals in the market. Given the current market dynamics, we anticipate vacancy levels and lease rates to start fi rming up over the next few years.

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Q4 2009 Q1 2010 Q2 2010 Q3 2010

12.2% 12.3%11.9%

13.0%

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Q4 2009 Q1 2010 Q2 2010 Q3 2010

12.8% 12.7% 12.1%12.6%

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Q4 2009 Q1 2010 Q2 2010 Q3 2010

14.8%15.6%

15.9%15.9%

6

Q3 2010


QUARTER IN REVIEW

SOUTH COOK INDUSTRIAL

SOUTH WILL INDUSTRIAL

WEST COOK INDUSTRIAL

ABSORPTION

VACANCY

ASKING RENTS

ABSORPTION

VACANCY

ASKING RENTS

ABSORPTION

VACANCY

ASKING RENTS


The vacancy rate increased this quarter due to several spaces coming on the market in Alsip, Chicago Heights and Dolton.


The vacancy rate increased this quarter due to several spac-es coming on the market in Frankfort and Tinley Park.


The vacancy rate increased this quarter due to several spac-es coming on the market in Broadview, Franklin Park and Schiller Park.

This submarket is home to 8 rail intermodal & carload rail yards. Due to the continued demand for rail-served facilities, or facilities located in close proximity to a rail yard, the immense rail infrastructure within this submarket will continue to be a valued attribute.

The South Will Submarket consists mainly of facilities that were built since 1980. It has seen a dramatic increase in the number of “Big Box” 300,000 SF plus distribution users over the last several years. The lowest property taxes and the lowest land prices in Suburban Chicagoland, along with great multi-state transportation access by I-80, are all major reasons why larger users have been attracted to the submarket. This submarket also consists of smaller manufacturing and distribution companies that service the immediate areas or those companies that have moved out of the South Cook Submarket for more functional buildings with a more favorable tax structure. Strong population growth, great highway access, low tax rates and an increasing labor market poise the South Will Submarket for continued growth and demand.

The West Cook submarket includes the communities of Bellwood, Broadview, Cicero, Forest Park, Franklin Park, Hillside, Maywood, Melrose Park, Northlake, River Grove, and Schiller Park.

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Q4 2009 Q1 2010 Q2 2010 Q3 2010

11.6% 11.8%12.6%

12.3%

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

22.0

Q4 2009 Q1 2010 Q2 2010 Q3 2010

18.0% 18.3%

19.9%19.8%

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Q4 2009 Q1 2010 Q2 2010 Q3 2010

13.1%14.2%

13.7%13.4%

7

Q3 2010


QUARTER IN REVIEW

INDIANA INDUSTRIAL

WISCONSIN INDUSTRIAL

OVERALL CHICAGO INDUSTRIAL

ABSORPTION

VACANCY

ASKING RENTS

ABSORPTION

VACANCY

ASKING RENTS

ABSORPTION

VACANCY

ASKING RENTS


The vacancy rate increased this quarter due to space com-ing on the market in East Chicago and Gary.


The vacancy rate decreased this quarter due to building sales in Mt. Pleasant including the 210,870 SF sale to Trea-sures Media Inc.


Overall vacancy in the Chicago market remained the same this quarter. A few submarkets are starting to see a de-crease in vacancy at a very slow pace.

The Indiana submarket has been historically dominated by the steel industry and its related older crane and heavy manufacturing facilities. Over the past several years, demand for these specialized facilities has grown weaker. However, demand has grown increasingly stronger for modern, functional distribution and light manufacturing facilities and there has been an increase in the number of new industrial developments to satisfy this demand. In addition to lower land prices, Indiana off ers several economic advantages over Illinois, including tax abatement, lower wage rates, employee benefi t savings, and utility savings.

The Wisconsin submarket consists of Racine and Kenosha Counties and includes the communitites of Bristol, Kenosha, Mt. Pleasant, Pleasant Prairie, Walworth, and Yorkville. Activity has started to pick up with a few lease extensions and new prospects in the market. Speculative development is restricted to Towne Investments with two speculative buildings in Pleasant Prairie, WI (51,000 SF and 82,000 SF) and HSA Commercial Real Estate with two speculative buildings in Mt. Pleasant (125,000 SF and 321,600 SF).

The Chicago industrial market extends out west to I-39 and includes Racine and Kenosha Counties in Wisconsin and Lake and Porter Counties in Indiana.

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Q4 2009 Q1 2010 Q2 2010 Q3 2010

16.1%17.0%

15.6%15.5%

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

22.0

Q4 2009 Q1 2010 Q2 2010 Q3 2010

20.8%

18.3%

16.2%

18.0%

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Q4 2009 Q1 2010 Q2 2010 Q3 2010

12.5%12.8% 12.9%12.9%

8

Q3 2010

Chicago

AVAILABLE

RECENT TRANSACTIONS

2727 Higgins Rd.-Elk Grove Village 2521 State St.-Chicago Heights 665 Armory Dr.-South Holland

14550 Park Ave.-Dolton

1245 Humbracht Cir.-Bartlett5800 7th Ave.-Kenosha, WI1117 Ellis Ave.-Bensenville

1365-1375 Mitchell Blvd.-Schaumburg 2581-2589 Technology Dr.-Elgin 10441 Beaudin Blvd.-Woodridge

7850 Quincy St.-Willowbrook 490 Windy Point Dr.-Glendale Heights

T5 lighting in production/warehouse area. 6” concrete warehouse fl oors. Expansion warehouse/offi ce area avail-able at 2424 Touhy directly west of property.

AVAILABLE SF: 181,400 LEASE RATE: $4.25 Net SALE PRICE: $7,300,000

UP and CN rail served. Space has four 10-ton bridge cranes, seven 5-ton gantry cranes, one 15-ton bridge crane, three 2-ton bridge cranes and three 2-ton job cranes. AVAILABLE SF: 110,000 LEASE RATE: $4.50 Gross SALE PRICE: Not For Sale

Available for sale or lease. Divisible to 16,021 SF.

AVAILABLE SF: 38,672 LEASE RATE: $4.00 Gross SALE PRICE: $850,000

2004 construction in Brewster Creek Business Park. Du-Page County location. 7% sales tax in Bartlett. Street visi-bility-front unit.

AVAILABLE SF: 12,150 LEASE RATE: $7.95 Gross SALE PRICE: $1,375,000

Located minutes away from the Elgin/O’Hare Ex-pressway. Well maintained, extremely functional warehouse/distribution building has excellent dock ratio, good clear height, Canadian Pacifi c rail service. Trailer and auto parking are expandable. Upgraded T5 lighting.

LEASED SF: 304,800 TENANT: JIT Packaging

Chicago’s premier industrial park. Great visibility from I-55. Access via Joliet Road and Lemont Road.

LEASED SF: 20,167 TENANT: Turano Bakery

Warehouse locker rooms. Fully air-conditioned ware-house, 7 roof-top units. Sublease opportunity through 11/30/2016.

AVAILABLE SF: 59,980 LEASE RATE: $5.50 Gross SALE PRICE: Not For Sale

Readily divisible to three units. Fenced outdoor storage. Good loading capabilities. DuPage County taxes.

AVAILABLE SF: 44,300 LEASE RATE: $4.25 Net SALE PRICE: $2,658,000

1/2 mile to I-80/Halsted full interchange. 1.5 miles to the main entrance gate of the CN Intermodal. Class 6B real es-tate taxes (transferable). Fenced trailer storage lot.

AVAILABLE SF: 82,512 LEASE RATE: Not For Lease SALE PRICE: $1,900,000

Ideal for warehouse/distribution. Easy access to major expressways (I-90/I-290/I-294/I-355). Low DuPage County real estate taxes. Immediate occupancy available.

AVAILABLE SF: 31,037 LEASE RATE: $5.95 Gross SALE PRICE: Not For Sale

Concrete, glass and block construction. Roof-mounted HVAC units (gas fi red). Sprinklered building. Floor drains throughout. Power and compressed air distribution.

AVAILABLE SF: 14,782 LEASE RATE: $3.95 Net SALE PRICE: Not For Sale

Strategic location midway between Chicago and Rockford. 25 minutes to O’Hare International Air-port. In the Chicago Northwestern Golden Corri-dor of Technology and Commerce. Abundant and diverse labor pool. Low Kane County taxes and a positive business climate.

LEASED SF: 62,792 TENANT: Suzlon Wind Energy Corp.

* The property information/detail contained herein has been provided by the seller/lessor or has been obtained from other sources believed to be reliable, and Lee & Associates of Illinois, LLC has not independently verified such information’s accuraccy. Lee & Associates, LLC makes no representations, guarantees, or express or implied warranties of any kind regarding the accuracy or completeness of the information provided herein nor the condition of the property and expressly disclaims all such warranties, including but not limited to the implied warranty of suit-ability and fitness for a particular purpose. Buyer/Lessee should perform its own due diligence regarding the accuracy of the information upon which buyer/lessee relies when entering into any transaction with seller/lessor herein. Furthere, the information provided herein, including any sale/lease terms, are being provided subject to errors, omissions, changes of price or conditions, prior sale or lease, and withdrawal without notice.

LEE & ASSOCIATES YOUR INDUSTRIAL TEAMMichael AndrowichPrincipal

Steve BassSenior Associate

Justin FierzPrincipal

Jeff GalantePrincipal

John SharpePrincipal

Brian VanoskyPrincipal

Walter MurphyPrincipal

Chris NelsonPrincipal

8755 W. Higgins Rd. Suite 1000Chicago, IL 60631 Phone: 773-355-3000Fax: 773-693-9921

10

With forty two offi ces in Arizona, California, Georgia, Idaho, Illinois, Indiana, Michigan, Missouri, Nevada, New Jersey, Texas and Wisconsin, the Lee & Associates group of independently owned and operated companies is the largest regional commercial real estate services provider in the United States, and the fourth largest full-service commercial real estate organization overall.

Each Lee & Associates group offi ce represents a broad array of regional, national and international clients-from individual investors and small businesses, to large corporations and institutions. Last year, the Lee & Associates group successfully completed transactions with a total value of nearly $8.8 billion.

Lee & Associates clients enjoy a comprehensive range of specialized commercial real estate services including industrial, offi ce and retail property sales and leasing, real estate investment consulting, real estate fi nancing, property acquisition and disposition, tenant representation and relocation, property and portfolio evaluation and market research.

In 1979, founder Bill Lee established the fi rst Lee & Associates offi ce, driven by the unique idea to turn real estate brokers into company owners or “shareholders”. Bill Lee’s guiding philosophy was the clients’ interests would be best served by a collective team eff ort from experienced sales agents who had an ownership stake in the privately-held organization, earned through exceptional performance and ethical practice.

Not merely employees, profi t-sharing Lee owner/agents would strive to create a sense of shared responsibility and cooperation throughout the organization, and would encourage an orientation toward long-term client relationships and business solutions.

Since then, Bill Lee’s profi t sharing concept has proven enormously successful, and has fueled an explosive growth to include and additional thirty-two group offi ces throughout the nation.

Fast Client Results. As company owners, Lee principals have a vested interest in the swift, successful completion of client assignments and transactions. Our associate brokers continually strive to earn ownership standing, encouraging a coordinated team eff ort and fast eff ective results for clients.

Streamlined Personal Service. Each Lee group offi ce is owned and operated by the brokers in that offi ce. Clients deal directly with decision makers, not with an unwieldy corporate bureaucracy like with many of our competitors.

Experience Counts. The average number of years experience of Lee’s principal commercial brokers is 15-20 years. Our unique profi t-sharing structure attracts the best people as owner brokers, only those with exceptional skills, confi dence and ethical practice.

Long-Term Relationship. Lee & Associates boasts the lowest turnover rate in the industry. Our ownership structure encourages longevity, allowing for long term relationships with clients.

In-Depth Market Knowledge. Each Lee group offi ce is committed to providing the best data and analysis for the market it serves. No other commercial real estate company has made specialized market knowledge and research as central to its business practice.

Business Stability. Since inception, each Lee & Associates group offi ce has been profi table, privately-held and managed by its individual shareholders. Newly formed offi ces are stable, debt-free operations, with all startup capital funded by shareholders of all offi ces through Lee’s venture capital group.

Strong National Affi liations. Lee & Associates maintains affi liations with recognized brokers in all major US real estate markets. Lee’s national organization affi liations include: SIOR, NACOR, IFMA, CRE, ICSC , IDRC and CCIM.

Scott AndersonVice President

Nick EboliSenior Associate

Sergio ChapaSenior Associate

Jeff Janda, SIORPrincipal

David PalsPrincipal

Ronan RemandabanSenior Associate

Jim Planey, SIORPrincipal

Mike ProstPrincipal

Ken FranzesePrincipal

Terry O’HaraSenior Vice President

Terms and DefinitionsAbsorption: Net change in occupied space over a period of time.

Vacancy Rate: Percentage acheived by dividing vacant square footage by total inventory square footage.

Inventory: Existing industrial buildings over 10,000 Square Feet.

Industrial Building: Facility used for manufacturing, warehouse and/or distribution with less than 50% offi ce space.

Paul TesdalSenior Associate

ABOUT

ORIGIN & PHILOSOPHY

THE LEE ADVANTAGE

Mike PlumbVice President

John CassidyPrincipal

Rick DelislePrincipal

Documents

3rd Qtr 2010 Market Stats