NAI CIR is pleased to present the Central Pennsylvania Industrial Market Report for the first half of 2011.We have compiled market data for Cumberland, Dauphin, Lebanon and York Counties for industrial buildings in size ranges of 10,000 square feet and above. With a detailed focus on these counties, we can view overall product health and stability and predict opportunities for growth potential. The summary data presented below is a rollup of product classes. The data base supporting this report includes over 1,300 buildings encompassing approximately 143 million square feet. Additional detail and drill down into Class A, B and C building types is available by contacting one of our industrial real estate professionals.

Overall product vacancy across the four counties, in all industrial buildings above 10,000 square feet, hovers at 16%. Dauphin County experiences the highest vacancy rate at approximately 19%. Lebanon, a substantially smaller market base, has the lowest vacancy rate at 7%. Cumberland and York Counties, the two largest markets in terms of square footage, register vacancy rates of 13% and 18% respectively.

The mid size sector of the market (buildings ranging from 10,000 to 99,999 square feet), has a total overall vacancy rate of 14.43%. York and Dauphin Counties encompass over one half of total space in the sector. York County is home to just over 2 million square feet with a vacancy rate of 15%. The Dauphin County vacancy rate in this sector is 12%.

The Central Pennsylvania market is home to 375 big box industrial buildings (100,000 square feet and above) with an overall vacancy rate of 16.52%. At 23.23%, Dauphin County has the highest vacancy rate in this sector. Cumberland County is also well above the average at 18.59%. York County is below the region average at 13% and Lebanon County, with only 500,000 square feet available, registers 5.25%. The NAI Global 2010 Global Market Report, published in February 2011, reported the Northeast Region of the United States having an average industrial building vacancy rate of 13%. With just a very few of the big box transactions typical in the Central Pennsylvania market, the regional vacancy rate will match or fall below the Northeast average. Recent transactions in Cumberland County include the Serpro Logistics lease of 30,000 square feet in 801 Spangler Road, Camp Hill and Bentley World Packaging leasing 64,383 square feet in 35 Springhouse Road, Shippensburg. In Dauphin County, Matthews International leased 71,330 square feet in 3400 Industrial Road in Harrisburg. In York County, Crane Cartage leased 152,282 square feet in 275 Cross Farm Lane, York.

With evidence of gradually expanding industrial market activity following the signs of continued and steady economic growth, the Central Pennsylvania Industrial Market is poised to have an increasingly stronger second half of 2011.Contact the NAI CIR professionals for additional information.

- Published by NAI CIR Industrial Council

NAI CIR PO Box 8910 Camp Hill, PA 17001 717 761 5070 www.naicir.com

Central Pennsylvania

This information and analysis comes from sources deemed reliable, but no warranty is made as to the accuracy thereof, and it is submitted subject to errors, omissions, change of price or other conditions, prior sale or lease, withdrawals or changes in market conditions. All sizes approximate. NAI CIR, 1015 Mumma Road, Wormleysburg, PA 17043 PA License #RB024320A

2011 Industrial Report: 2nd Quarter

Total Industrial Vacancy 10,000 SF and Above

County # of Buildings Total SF Available SF % Vacancy

Cumberland 321 50,470,184 9,260,378 18.35%

Dauphin 412 31,178,979 5,956,498 19.10%

Lebanon 99 11,493,105 848,582 7.38%

York 499 49,643,163 6,786,959 13.67%

Totals 1331 142,785,431 22,852,417 16.00%

Industrial Vacancy 10,000 SF - 99,000 SF

County # of Buildings Total SF Available SF % Vacancy

Cumberland 189 6,839,674 1,147,945 16.78%

Dauphin 341 11,743,839 1,442,563 12.28%

Lebanon 74 2,702,059 386,982 14.32%

York 364 13,767,568 2,080,052 15.11%

Totals 968 35,053,140 5,057,542 14.43%

Industrial Vacancy 100,000 SF and Above

County # of Buildings Total SF Available SF % Vacancy

Cumberland 198 43,630,510 8,112,433 18.59%

Dauphin 17 19,435,140 4,513,935 23.23%

Lebanon 25 8,791,046 461,600 5.25%

York 135 35,875,595 4,706,907 13.12%

Totals 375 107,732,291 17,794,875 16.52%

NAI CIR PO Box 8910 Camp Hill, PA 17001 717 761 5070 www.naicir.com

NAI CIR

NAI CIR Agents Dan AldermanJoseph Bedard, SIORErik Gainor Peter GemoraWilliam Gladstone, CCIM, SIOR Dick Kleiman Nathan KranzHarold Leibenson Asma Malik Fahd MalikIda McMurray, CCIM Craig RahnJames Ross David Rudy Mark Santanna Nik Sgagias Jack Shepley, SIORJustin ShoemakerJason Sourbeer Brad SwidlerRobin Zellers, SIOR, COO

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Founded in 1970, NAI CIR is Central Pennsylvania’s oldest and largest exclusively

commercial and industrial real estate brokerage firm. Begun with 2 founding partners,

NAI CIR now operates with over 30 full-time professionals and consistently leads the

marketplace in annual transaction volume.

Since 1985, NAI CIR has been Central Pennsylvania’s partner with NAI Global. NAI is

the world’s largest managed network of independent commercial and industrial real

estate brokers. With over 375 offices and 8,000 professionals worldwide, NAI covers

the globe with strong, locally–based real estate professionals. NAI CIR is consistently

recognized internationally as one of the leading firms within the NAI Global network.