PREPARED BY Norman Ives Designated Broker · Deliveries SF 6.7 M 3,604,600 4,123,165 7,489,172 2007 Q1 133,370 2012 Q1 Rent Growth 5.9% 3.2% 2.5% 9.4% 2017 Q1 -2.5% 2010 Q3 Sales

PREPARED BY

Norman Ives

Designated Broker

INDUSTRIAL MARKET REPORT

Market Key Statistics 2

Leasing 3

Rent 7

Construction 9

Under Construction Properties 11

Sales 13

Sales Past 12 Months 14

Economy 16

Market Submarkets 19

Supply & Demand Trends 26

Rent & Vacancy 28

Sale Trends 30

7/18/2019Copyrighted report licensed to NI Commercial Real Estate - 68613.

12 Mo Deliveries in SF

6.7 M12 Mo Net Absorption in SF

953 KVacancy Rate

4.9%12 Mo Rent Growth

5.9%Seattle's industrial market is one of the most active in thecountry, thanks to a bustling economy and one of thelargest ports on the west coast. Subsequently, the mostactive submarkets for development are in proximity to theports, especially the Port of Tacoma. Despite a busydelivery schedule recently and an onslaught of move-outs in early 2019, vacancies are still lower than lastcycle's trough and rent growth is well above the historicalaverage. The combination of these large availabilitiesand a highly speculative pipeline could have an adverse

effect on vacancy and rent growth in the near termthough.

Investment activity has been strong over the past severalquarters, and much of it can be attributed to largeinstitutional deals. Cap rates are well below the nationalaverage and have compressed significantly this cycledue to a significant increase in pricing. Sales volume in2019 is characterized by large trades, including nationalportfolio deals.

KEY INDICATORS

Market RentVacancy RateRBACurrent Quarter Availability RateNet Absorption

SFDeliveries SF

UnderConstruction

$9.935.8%208,852,587Logistics 7.9% (720,445) 1,166,939 2,513,660

$10.302.6%87,331,978Specialized Industrial 3.5% (81,023) 0 0

$18.645.1%31,154,009Flex 6.0% (1,281) 0 0

$10.854.9%327,338,574Market 6.6% (802,749) 1,166,939 2,513,660

ForecastAverage

HistoricalAverage

12 MonthAnnual Trends Peak When Trough When

5.7%6.2%1.6%Vacancy Change (YOY) 9.6% 2003 Q2 2.9% 2017 Q4

1,834,0102,756,097953 KNet Absorption SF 8,255,244 2007 Q1 (4,964,912) 2003 Q2

4,123,1653,604,6006.7 MDeliveries SF 7,489,172 2007 Q1 133,370 2012 Q1

2.5%3.2%5.9%Rent Growth 9.4% 2017 Q1 -2.5% 2010 Q3

N/A$1.0B$2.4 BSales Volume $2.4B 2018 Q4 $207.0M 2010 Q2


Page 2

Strong local consumption and regional trade with Asiahave helped keep industrial demand robust this cycle.Net absorption has met or exceeded 3 million SF everyyear since 2012, but there are some causes for concernin the near term. An onslaught of logistics move-outsacross the metro contributed to an uptick in the vacancyrate in 19Q1 and a highly speculative pipeline addssupply pressures. Around 70% of under constructionspace is still available for lease, and most of it is logisticsspace concentrated in South King and Pierce counties.Vacancy in flex and specialized space remains tighterthan logistics space, as demand abounds anddevelopment is limited.

Development activity has been especially dynamic nearthe ports. The alliance of the ports of Seattle andTacoma in 2015 was established in part to fight off fiercecompetition from Canadian ports and it has paiddividends. Container volume is on the rise and this hasspurred logistics demand in the area, especially near thePort of Tacoma. Developers continue to inundate theseareas with new inventory, which should have an outsized

effect on logistics vacancy specifically.

Submarkets like Port of Tacoma/Fife and Puyallup/S Hilloffer developers lower land costs and tenants a discountto close-in submarkets. Net absorption has been amongthe highest in the metro in these areas over the past fiveyears and most new leases were in large distributioncenters or warehouses. For example, StryderMotorfreight took 100,000 SF at IPT Tacoma LogisticsCenter in Port of Tacoma/Fife in 19Q1. The 1.1 million-SF complex opened in 18Q2 and it remains nearly 50%available for lease as of 19Q3.

Last-mile distribution hubs in more central areas arealso seeing a lot of construction activity and tenantdemand. Submarkets like Auburn, Kent Valley N andSeatac/Burien offer strategic locations roughly halfwaybetween both ports and close to the airport. In Auburn,Young's Market signed on for all of the space at the288,000-SF DCT Hudson Distribution Center, whichopened in 19Q2. The wine distributor has had a majorpresence in Washington state since 1999.

NET ABSORPTION, NET DELIVERIES & VACANCY


Page 3

VACANCY RATE

AVAILABILITY RATE


Page 4

12 MONTH NET ABSORPTION SF IN SELECTED BUILDINGS

3rd QtrBuilding Name/Address Submarket Bldg SF Vacant SF

1st Qtr 2nd Qtr 4th Qtr 12 Month

Net Absorption SF

Port of Tacoma/Fife Ind 428,228 0 0 428,228 0 0 428,228DCT Blair Distribution Center (1)

Port of Tacoma/Fife Ind 542,750 202,750 0 340,000 0 0 340,000DCT Blair Distribution Center (2)

Auburn Ind 287,832 0 0 287,832 0 0 287,832DCT Hudson Distribution Center

Seatac/Burien Ind 265,922 0 0 0 0 0 265,922Des Moines Creek BP Phase IV…

Woodinville Ind 275,710 39,000 0 236,710 0 0 236,710LogistiCenter at Woodinville

Puyallup/S Hill Ind 229,016 0 62 64,749 0 0 229,016IPT Sumner Distribution Center

Puyallup/S Hill Ind 228,256 0 61,708 166,256 0 0 227,964Valley Distribution Ctr

Fort Lewis Ind 467,208 208,370 76,000 0 (208,370) 0 208,421Lakewood-Tacoma Gateway

Kent Valley N Ind 229,500 0 0 0 0 0 200,445Northwest Corporate Park

Seatac/Burien Ind 246,073 0 0 0 0 0 197,928Des Moines Creek BP Phase IV…

Auburn Ind 261,553 92,293 0 0 0 0 169,260North Auburn Logistics

Kent Valley N Ind 155,264 0 0 0 0 0 155,264Pacific Gateway Business Park

Port of Tacoma/Fife Ind 280,525 136,724 100,432 43,369 0 0 143,801IPT Tacoma Logistics Center

Renton Ind 235,125 0 0 0 0 0 140,990Oakesdale Business Campus

Port of Tacoma/Fife Ind 319,806 159,806 0 0 0 0 128,695Prologis Park Tacoma

Puyallup/S Hill Ind 111,824 0 111,824 0 0 0 111,824Fife 70 East

E Pierce County Ind 202,000 100,000 0 0 0 0 102,000Fennel Creek Industrial Park

4,766,592 938,943 350,026 1,567,144 (208,370) 0 3,574,300Subtotal Primary Competitors

322,571,982 15,025,731 (1,454,322) (273,508) (594,379) 0 (2,621,144)Remaining Seattle Market

327,338,574 15,964,674 (1,104,296) 1,293,636 (802,749) 0 953,156Total Seattle Market


Page 5

TOP INDUSTRIAL LEASES PAST 12 MONTHS

Building Name/Address Submarket Leased SF Tenant Name Tenant Rep Company Leasing Rep CompanyQtr

2800 Center Dr Dupont 747,488 Kimberly Clark - Washington Real Estat…Q2 19

2600 Taylor Way Port of Tacoma/Fife 428,228 Ashley HomeStore (US) Kidder Mathews Kidder MathewsQ2 19

19922 38th Ave Parkland/Spanaway 405,000 Best Buy - Neil Walter Company;P…Q3 18

2600 Taylor Way Port of Tacoma/Fife 340,000 Samsung - Kidder MathewsQ4 18

4800 Harbour Pointe Blvd * S Everett/Harbor Pt 326,447 Travis Industries Broderick Group, Inc. -Q4 18

6302 S 287th St Auburn 287,832 Young's Market Colliers International CBREQ4 18

3401 W Valley Hwy E Puyallup/S Hill 263,168 - - Neil Walter CompanyQ2 19

20413 59th Pl S Kent Valley N 245,670 Wilmar Corporation The Andover Compa… CBREQ1 19

4800 E Valley Hwy Puyallup/S Hill 228,256 East Bay Logistics - Exeter Property GroupQ4 18

701-713 A St NE * Auburn 172,830 ProAmpac - Cushman & WakefieldQ3 18

2402 R St NW * Auburn 162,056 Hollingsworth Logistics Gr… - Cushman & WakefieldQ3 18

14237 Des Moines Memorial Dr Tukwila 161,573 Mercer Distribution - Kidder MathewsQ1 19

3514 142nd Ave E Puyallup/S Hill 161,200 - - CBRE;PrologisQ3 19

521 8th St SW Auburn 157,414 Edward Don & Company CBRE CBREQ4 18

13605 52nd St E Puyallup/S Hill 154,000 Article - CBREQ3 18

20413 59th Pl S Kent Valley N 144,000 - - CBREQ3 19

19822-20024 87th Ave S * Kent Valley N 144,000 Plastic Express - -Q4 18

4123 142nd Ave E Puyallup/S Hill 142,825 - - Colliers InternationalQ2 19

7024 S 234th St Kent Valley S 125,400 - - JLLQ2 19

2601 W Valley Hwy N Auburn 124,878 Pacific Plumbing Supply Co. - Neil Walter CompanyQ1 19

3602 Freeman Rd E Puyallup/S Hill 119,911 - - Colliers InternationalQ2 19

701 A St NE * Auburn 113,642 ProAmpac - Cushman & WakefieldQ3 18

600 Riverside Rd Everett CBD 102,607 Amazon - JLL;Washington Real E…Q2 19

22619-22731 54th Ave S Kent Valley S 102,002 - - JLLQ2 19

820 SW 41st St Renton 101,400 T&A Supply - CBREQ4 18

927 E 11th St Port of Tacoma/Fife 100,432 Stryder Motorfreight - Cushman & WakefieldQ1 19

9713 233rd Ave E E Pierce County 100,000 - - TeeterQ2 19

24105-24305 Woodinville Snohomish… Woodinville 98,250 - - NAI Puget Sound Prop…Q4 18

6050 E Marginal Way S Gtown/Duwamish N 96,000 Home Depot - Washington Real Estat…Q4 18

3520 142nd Ave E Puyallup/S Hill 96,000 XPO R.E. Perry Company CBRE;PrologisQ3 18

6607 S 287th St Auburn 92,293 - - Kidder MathewsQ2 19

20730-20844 72nd Ave S Kent Valley N 90,876 - - Colliers InternationalQ2 19

22414-22714 Russell Rd Kent Valley S 89,900 Innerline Brands - Cushman & WakefieldQ1 19

15300 Woodinville-Redmond Rd NE Woodinville 85,211 CustomSpace Colliers International CBREQ4 18

7812 S 186th Pl Kent Valley N 84,000 Griffith Industries - JLLQ3 19

8610-8810 S 212th St Kent Valley N 81,000 Wayfair, Inc. - Kidder Mathews;PrologisQ3 18

14237 Des Moines Memorial Dr Tukwila 73,845 Suddath Moving - Kidder MathewsQ1 19

1039 S 146th St Tukwila 72,427 Carrols - Kidder MathewsQ2 19

21422-21520 84th Ave S Kent Valley S 70,925 Seko Worldwide Newmark Knight Frank CBREQ2 19

3900 Industry Dr E Port of Tacoma/Fife 69,798 OnTrac Cushman & Wakefield CBRE;PrologisQ4 18

*Renewal


Page 6

Rents in all industrial property types have grown robustlythis cycle, but most property subtypes reached a peak inthe first half of 2017. Annual rent growth is still higherthan the national and historical averages, and averagerent is well above the national index.

Logistics properties have maintained the strongestcumulative rent growth this cycle, but flex andspecialized properties have seen substantial growth aswell. With more properties making their way through thepipeline (especially logistics), supply pressures areevident and rent gains could slow in the near term.

Rent growth deceleration has been particularly notable insubmarkets close to the Port of Tacoma, and this shouldcontinue. Developers caught on to the strong rent growthearlier in the cycle, but annual gains have slowed in theface of supply pressures. Many of the submarkets withthe strongest growth are high-rent submarkets close tothe city and in northern parts of the metro. These areashave some of the tightest vacancies in the metro, due tostrong demand and less development than othersubmarkets this cycle.

MARKET RENT GROWTH (YOY)


Page 7

MARKET RENT PER SQUARE FOOT


Page 8

Development activity is robust this cycle and shows nosigns of slowing down. Roughly 20 million SF ofindustrial space delivered here from 2010–18, including19 million SF of logistics space and around 1 million SFof specialized space. Flex space actually had a net loss,since some properties were demolished. With more than8 million SF slated to deliver in 2019–20, competition fortenants will be stiff.

While projects have delivered across the metro, PierceCounty has received the most attention this cycle. Thearea is close to the Port of Tacoma, and land costs andrents are well below the metro average. Recentlydelivered projects are a mixed bag between speculativeand build-to-suit developments. On the speculativeside, Panattoni’s 468,000-SF Lakewood-TacomaGateway opened in the Fort Lewis Submarket in 18Q2.The property was able to secure Damco and GEODISLogistics several months before the project delivered.The asset is a 20-minute drive from the port and offerseasy access to Olympia.

Major projects underway are concentrated in South Kingand Pierce counties. Examples include Michelson's438,000-SF Viking in Puyallup. The project is set todeliver by the end of the year and remains fully availablefor lease as of 19Q3. A handful of buildings are alsounder construction and in planning in Snohomish County.For example, nearly 500,000 SF is under construction at

Gayteway Business Park in Arlington. The project wasfully available for lease as of 19Q3 and it is expected toopen in 2020.

Some developers are trading low land costs for proximityto the city. Prologis announced in 2016 that it would buildthe first multistory warehouse in the U.S. just outsidedowntown Seattle, in the Georgetown area. Constructionstarted in 2017 on the 590,000-SF GeorgetownCrossroads, and it opened in December 2018. Theproject was able to secure a 96,000-SF lease withHome Depot in 18Q4 but the remaining space remainsavailable for lease as of 19Q3.

This is not Prologis' only venture in the Puget Soundregion, either. The company’s acquisition of DCTIndustrial added several assets to its Seattle-areaportfolio, but it had investments in the area prior to that.Next to Boeing Field, a site previously planned for anNHL/NBA arena was sold to the company for $136million in November 2016. The site lies in both Seattleand Tukwila and has a warehouse, a cold-storagefacility, and retail and office buildings totaling over960,000 SF. The industrial REIT plans to redevelop the62-acre site, which is being called Emerald Gateway.This was the 12th property acquired by Prologis in a two-year period, making the REIT the largest institutionalowner in South Seattle.


Page 9

DELIVERIES & DEMOLITIONS

SUBMARKET CONSTRUCTION

Average Building Size

RankUnder Constr

Under Construction Inventory

All ExistingSF (000) Pre-Leased SF (000)SubmarketNo. RankBldgs Pre-Leased %

1 Puyallup/S Hill 4 929 232,31628.3% 4 58,594263 2

2 Dupont 1 747 747,488100% 1 257,994747 1

3 Port of Tacoma/Fife 2 276 138,0050% 5 54,0260 4

4 Kent Valley N 1 220 219,9100% 5 76,6200 3

5 Kent Valley S 1 98 97,5220% 5 46,9400 5

6 E Tacoma 1 77 77,4320% 5 15,2060 6

7 Federal Way 1 77 77,233100% 1 26,21977 7

8 E King County 1 60 60,1000% 5 31,6960 8

9 E Pierce County 1 19 19,2000% 5 17,4950 9

10 Bothell/Kenmore 1 10 9,500100% 1 36,49410 10

All Other 0 - -- 33,553-

Totals 14 2,514 179,54743.7% 38,4661,097


Page 10

Properties

14Square Feet

2,513,660Percent of Inventory

0.8%Preleased

43.7%

UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

Oct-20182800 Center Dr

The Cubes at DuPont Co…747,488 1 Sep-2019

-

-1

Oct-2018Shaw Rd E & 5th Ave SE

The Viking438,065 1 Nov-2019

-

-2

Jun-20193401 W Valley Hwy E

Prologis Park Sumner263,168 1 Jan-2020

-

Prologis, Inc.3

Jan-20193401 Lincoln Ave

Building C221,010 1 Aug-2019

-

Port of Tacoma4

Jan-20198615 S 192nd St

Kent 192 DC219,910 1 Nov-2019

-

Terreno Realty Corporation5

Jul-2018109 Roy Rd SE

Pacific Logistics North163,894 1 Aug-2019

-

Panattoni Development Company6

Jun-201926524 79th Ave

97,522 1 Jan-2020-

-7


Page 11

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

May-20192519 96th St

Tacoma I-5 Industrial Ce…77,432 1 Oct-2019

-

-8

Jul-20191019 S 351st St

Pacific Highway77,233 1 Jul-2020

-

Neumeier Engineering9

Jun-20191710 136th Ave E

Bridge Point Sumner 6064,138 1 Dec-2019

-

-10

Jul-201934821 SE Douglas St

Boulder Building at Sno…60,100 1 Oct-2019

-

Vincent Volpe11

Jul-201970th Ave E

Davis 7055,000 1 Feb-2020

-

-12

Jan-201910007 234th Ave E

19,200 1 Aug-2019-

-13

Jan-201811910 Woodinville Dr

9,500 2 Aug-2019-

John Fowler14


Page 12

Seattle attracts a great deal of interest from institutionalinvestors. While the cap rate on the average asset is inthe 5% range, the best-quality assets are garneringeven lower cap rates. These yields are some of thelowest in the country, and most markets that trade in thisrange (Los Angeles, New York) have much moreestablished ports.

Sales volume in 2019 is on pace to be lower than lastyear's, but 2018 was a record year. The largest deal of2019 thus far was Colony Capital's acquisition of fourproperties from Dermody Properties in February. The

assets are in Fife, Lakewood, and Woodinville and werepart of a national portfolio that sold for $1.2 billion. TheSeattle-area assets were estimated to be worth around$136 million based on allocated pricing.

Another large trade was Clarion Partners' acquisition ofthree buildings at Des Moines Creek Business Park -Phase I for $81.1 million ($162/SF) at a 4% cap rate inJune. The property was reportedly fully occupied bytenants like Hearthside Food Solutions, K-2 Corporation,Kardiel, Meiko America and PODS.

SALES VOLUME & MARKET SALE PRICE PER SF


Page 13

Sale Comparables

378Avg. Cap Rate

5.5%Avg. Price/SF

$165Avg. Vacancy At Sale

7.5%SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS

Sales Attributes Low Average Median High

Sale Price $131,796 $8,058,768 $3,850,000 $78,996,568

Price Per SF $5.65 $165 $167 $1,536

Cap Rate 3.5% 5.5% 5.0% 8.5%

Time Since Sale in Months 0.3 6.8 7.6 12.0

Property Attributes Low Average Median High

Building SF 1,041 55,782 24,454 648,679

Ceiling Height 9' 21'3" 21' 50'

Docks 0 9 2 130

Vacancy Rate At Sale 0% 7.5% 0% 100%

Year Built 1890 1979 1985 2020

Star Rating 2.4


Page 14

Property Name - Address Rating Yr Built Bldg SF Vacancy Price Price/SF

Property

Sale Date

Sale

Cap Rate

RECENT SIGNIFICANT SALES

-1 Safeway Distribution Ctr…2005 636,127 0% $78,996,568 $124

105 C St SW12/18/2018 -

-2 Lakewood-Tacoma Gate…2018 467,208 16.3% $65,575,000 $140

14801 Spring St SW12/19/2018 -

-3 Safeway Distribution Ctr…2005 514,000 0% $63,830,392 $124

104 C St SW12/18/2018 -

-4 Des Moines Creek BP Ph…2018 265,922 0% $59,405,282 $223

21202 24th Ave S12/11/2018 -

-5 Bldg D1984 218,003 0% $53,500,000 $245

6101 S 180th St11/21/2018 -

-6 Des Moines Creek BP Ph…2018 246,073 0% $51,594,718 $210

21402 24th Ave S12/11/2018 -

-7 Sls - Sears Whse1981 294,912 0% $49,000,000 $166

7650 S 228th St8/31/2018 -

-8 Toysmith2008 264,344 0% $41,050,000 $155

3101 W Valley Hwy E12/27/2018 5.2%

-9 5940-5980 1st Ave S1967 206,669 0% $41,001,996 $1988/7/2018 -

-10 Pepsi Bottling - Bldg 21972 166,014 0% $38,102,987 $230

2300 26th Ave9/7/2018 -

-11 Bldg 1C2015 233,703 0% $37,785,927 $162

2021 S 208th St6/4/2019 4.0%

-12 LogistiCenter at Woodin…2019 275,710 14.2% $37,637,272 $137

7720 W Bostian Rd2/25/2019 -

-13 Kent 351985 361,135 0% $37,119,616 $103

27232 72nd Ave S10/1/2018 -

-14 Bldg C1980 300,000 0% $36,573,910 $122

19802-20024 85th Ave S10/1/2018 -

-15 4800 E Valley Hwy2004 228,256 72.8% $36,100,000 $1583/4/2019 -

-16 LogistiCenter at I-52017 210,700 0% $34,277,220 $163

3401 96th St S2/25/2019 -

-17 Bldg F1980 307,200 0% $33,594,857 $109

19822-20024 87th Ave S10/1/2018 -

-18 Northwest Corporate Par…1980 300,000 3.0% $32,807,477 $109

19801-20023 89th Ave S10/1/2018 -

-19 LogistiCenter at 1672016 225,800 0% $32,574,040 $144

7402-7490 26th St E2/25/2019 -

-20 LogistiCenter at Woodin…2019 134,000 24.5% $31,546,509 $235

7733 W Bostian Rd2/25/2019 -


Page 15

Seattle’s economic success remains broad-based, andthe unemployment rate has contracted significantly thiscycle. Employment growth has outpaced the nationalaverage since 2010 and will likely remain this way in thenear term. Nonfarm job growth remains well above 2%annually and this robust growth is well-diversified amongvarious sectors. A strong job market translates todynamic income growth: The metro's median householdincome is around $87,000, nearly 40% higher than thenational median and more than 30% higher than themetro level at the beginning of the cycle.

The largest supersector in the Seattle area remainstrade, transportation, and utilities, and it has grownexponentially this cycle. This includes the retail tradesector, which Amazon technically falls under. Trade hasbenefited from strong connections to emerging Asianmarkets, as have leisure and hospitality, bolstered byincreasing international business travel and tourism. Theeducation and health services supersector benefits fromthe presence of the University of Washington, which, inaddition to being one of the metro’s largest employers,has spawned a cluster of life sciences and biotechcompanies in nearby South Lake Union.

Amid a well-diversified job base, tech is clearly the toastof the town. As a result, the information supersector hasexhibited impressive growth this cycle. The presence ofcompanies like Microsoft contributes to making Seattlean international center of technology, but Amazon sealsthe deal. The e-commerce giant continues to expandrapidly with high-paying jobs in the tech industry, evenwith its second headquarters (HQ2). The companyemploys 45,000 people in the metro and couldrealistically add tens of thousands more over the nextseveral years.

Other tech companies have been expanding, too,including well-known Bay Area firms. Facebook is onpace to more than double its Puget Sound regionalheadcount to 4,000 employees. The company has signedseveral leases in the urban core and Eastside recently.

Google is expanding rapidly in South Lake Union, andcould easily double its headcount to 6,000 employees inthe metro. Last but not least, Apple announced that itwould expand by 2,000 employees in the city of Seattle.Such expansions continue to add high-paid workers tothe region—the metro’s population growth far outpacesthe national average.

The aura of stagnation appears to be lifting at Microsoft,the Eastside's major tech employer. CEO Satya Nadella’s push to cloud computing has pleased analysts andshareholders alike. The software giant is in the midst ofexpanding its Redmond campus, which will likely haveroom for 8,000 additional employees when completed.Initial estimates were for a 2025 project completion date,but plans submitted to the city in early 2018 have amore-aggressive completion target of 2022, well beforethe light rail expansion makes its way to Redmond.

Manufacturing threatens to rain on the economy’sparade. Financial activities never completely recoveredfrom Washington Mutual’s 2008 bankruptcy, but it isBoeing’s possible pivot to other countries and to thesouthern United States that is one of the biggestpotential threat to the Puget Sound area’s economy. Theaerospace giant opened its first offshore plane facility inChina in December 2018 and it is considering movingkey segments of its operations to other countries, whichmeans fewer jobs in Washington state. The company cutnearly 7,400 jobs in the state in 2016 and more than4,000 jobs in 2017, and more layoffs are looming.

While layoffs are concerning, this is no indication of badperformance for the jet maker. The company set anindustry record in 2017, with a total of 763 planesdelivered, and 2018 was strong as well, despite supplychain slowdowns throughout the year. The grounding ofthe 737 Max in early 2019 is concerning though, as alarge part of the company's business is in jeopardy. The737 Max is manufactured in Renton and the companyannounced that it would cut production of the jet by 20%until further notice.


Page 16

SEATTLE EMPLOYMENT BY INDUSTRY IN THOUSANDS

NAICS Industry Jobs LQ MarketUS USMarketUSMarket

Current Jobs Current Growth 10 Yr Historical 5 Yr Forecast

0.00%0.42%0.84%0.62%1.41%3.45%1.0184Manufacturing

0.49%0.72%1.14%2.63%0.86%1.28%1.0396Trade, Transportation and Utilities

0.38%1.01%0.84%3.18%-0.19%0.62%1.0228 Retail Trade

0.35%0.33%0.99%0.62%1.01%2.09%0.9105Financial Activities

0.77%1.43%-0.03%0.30%0.43%-1.03%0.9270Government

0.26%1.65%2.06%3.29%3.17%4.25%1.2134Natural Resources, Mining and Construction

0.55%0.59%2.12%2.46%2.30%3.44%0.9285Education and Health Services

1.00%1.30%2.61%3.20%2.27%2.61%1.0304Professional and Business Services

0.56%1.93%0.00%3.31%-0.91%2.91%3.1121Information

0.61%0.60%2.49%3.20%2.51%3.93%0.9214Leisure and Hospitality

0.30%1.07%0.98%1.71%1.30%2.70%0.977Other Services

Total Employment 2,091 1.0 2.28% 1.56% 2.15% 1.42% 0.97% 0.56%

Source: Oxford Economics

LQ = Location Quotient


YEAR OVER YEAR JOB GROWTH


Page 17

DEMOGRAPHIC TRENDS

Current ChangeCurrent Level

Metro U.S.Metro U.S.Demographic Category

10-Year Change

Metro U.S. Metro U.S.

Forecast Change (5 Yrs)

Population 329,091,9693,989,720 1.5% 0.6% 1.6% 0.7% 1.4% 0.7%

Households 121,200,5781,526,990 1.4% 0.5% 1.4% 0.6% 1.3% 0.6%

Median Household Income $63,584$87,905 4.0% 3.3% 3.0% 2.2% 4.2% 4.4%

Labor Force 163,304,7662,150,330 1.8% 0.9% 1.2% 0.6% 1.1% 0.6%

Unemployment 3.6%3.6% -0.2% -0.3% -0.5% -0.6% - -


POPULATION GROWTH


LABOR FORCE GROWTH INCOME GROWTH


Page 18

SEATTLE SUBMARKETS


Page 19

SUBMARKET INVENTORY

12 Month Deliveries Under Construction

Bldgs SF (000) Percent Rank

Inventory

Bldgs SF (000) Percent RankBldgs SF (000) % Market RankSubmarketNo.

1 520 Corridor 1,095 0.3% 43 0 - - -54 0 0 0% -

2 Auburn 27,675 8.5% 3 0 - - -441 3 504 1.8% 5

3 Ballard 2,729 0.8% 30 0 - - -235 1 71 2.6% 15

4 Bellevue 2,928 0.9% 29 0 - - -124 0 0 0% -

5 Belltwn/Denny Regrade 199 0.1% 49 0 - - -11 0 0 0% -

6 Bothell/Kenmore 5,584 1.7% 17 1 10 0.2% 10153 0 0 0% -

7 Capitol Hill/Ctrl Dist In 768 0.2% 45 0 - - -34 0 0 0% -

8 Dupont 3,354 1.0% 25 1 747 22.3% 213 2 664 19.8% 3

9 E King County 3,740 1.1% 21 1 60 1.6% 8118 0 0 0% -

10 E Pierce County 770 0.2% 44 1 19 2.5% 944 1 202 26.2% 12

11 E Tacoma 3,452 1.1% 23 1 77 2.2% 6227 0 0 0% -

12 Edmonds/Lynnwood 3,255 1.0% 27 0 - - -187 0 0 0% -

13 Everett CBD 3,567 1.1% 22 0 - - -167 1 204 5.7% 11

14 Federal Way 1,573 0.5% 37 1 77 4.9% 760 0 0 0% -

15 Fort Lewis 551 0.2% 47 0 - - -9 0 0 0% -

16 Gig Harbor/W Pierce 693 0.2% 46 0 - - -73 0 0 0% -

17 Greenwood/Fremont 1,210 0.4% 40 0 - - -111 0 0 0% -

18 Gtown/Duwamish N 14,778 4.5% 8 0 - - -387 1 590 4.0% 4

19 Gtown/Duwamish S 12,346 3.8% 9 0 - - -263 0 0 0% -

20 Kent Valley N 30,954 9.5% 1 1 220 0.7% 4404 3 256 0.8% 10

21 Kent Valley S 20,419 6.2% 5 1 98 0.5% 5435 2 144 0.7% 13

22 Kirkland 3,357 1.0% 24 0 - - -133 0 0 0% -

23 Lake Union 1,661 0.5% 36 0 - - -97 0 0 0% -

24 Lakewood 4,955 1.5% 19 0 - - -151 0 0 0% -

25 Magnolia 2,689 0.8% 31 0 - - -158 0 0 0% -

26 Mill Creek/N Creek 1,759 0.5% 35 0 - - -74 0 0 0% -

27 N Snohomish County 6,135 1.9% 15 0 - - -311 3 131 2.1% 14

28 Newport/Issaquah 1,894 0.6% 34 0 - - -83 0 0 0% -

29 North End Tacoma 2,367 0.7% 32 0 - - -119 1 10 0.4% 18

30 Northgate/N Seattle 1,521 0.5% 38 0 - - -143 0 0 0% -

31 Parkland/Spanaway 7,008 2.1% 14 0 - - -139 1 450 6.4% 8

32 Port of Tacoma/Fife 21,718 6.6% 4 2 276 1.3% 3402 4 1,178 5.4% 1

33 Puyallup/S Hill 29,297 9.0% 2 4 929 3.2% 1500 4 472 1.6% 6

34 Queen Anne 2,097 0.6% 33 0 - - -91 0 0 0% -

35 Rainier/Beacon Hill 3,252 1.0% 28 0 - - -139 0 0 0% -

36 Redmond 8,359 2.6% 12 0 - - -272 1 52 0.6% 16

37 Renton 11,017 3.4% 11 0 - - -163 0 0 0% -

38 S Everett/Harbor Pt 20,174 6.2% 6 0 - - -350 1 7 0% 19

39 S Snohomish County 3,304 1.0% 26 0 - - -129 1 21 0.6% 17

40 Seatac/Burien 5,679 1.7% 16 0 - - -136 3 921 16.2% 2

41 Seattle CBD 6 0% 50 0 - - -1 0 0 0% -

42 SoDo 11,191 3.4% 10 0 - - -293 0 0 0% -


Page 20

SUBMARKET INVENTORY

12 Month Deliveries Under Construction

Bldgs SF (000) Percent Rank

Inventory

Bldgs SF (000) Percent RankBldgs SF (000) % Market RankSubmarketNo.

43 Tacoma CBD 1,363 0.4% 39 0 - - -62 0 0 0% -

44 Tukwila 15,717 4.8% 7 0 - - -346 2 369 2.3% 9

45 U. District/Ravenna 1,185 0.4% 41 0 - - -40 0 0 0% -

46 University Place 5,321 1.6% 18 0 - - -259 0 0 0% -

47 Vashon/Maury Isl 332 0.1% 48 0 - - -8 0 0 0% -

48 W Seattle 4,074 1.2% 20 0 - - -113 0 0 0% -

49 Waterfront 1,145 0.3% 42 0 - - -33 0 0 0% -

50 Woodinville 7,094 2.2% 13 0 - - -214 4 455 6.4% 7


Page 21

SUBMARKET RENT

Growth

Asking Rent

Per SFSubmarketNo.

12 Month Asking Rent Annualized Quarterly Rent

RankRank GrowthRank

1 520 Corridor 1.6%5 8.2% 2$18.78 41

2 Auburn 2.5%41 5.4% 44$8.70 24

3 Ballard -0.4%12 5.7% 35$16.47 48

4 Bellevue 1.7%10 6.6% 14$16.66 39

5 Belltwn/Denny Regrade 2.3%4 8.0% 3$18.86 28

6 Bothell/Kenmore 2.6%7 7.4% 7$18.05 21

7 Capitol Hill/Ctrl Dist In 2.1%1 8.3% 1$30.46 31

8 Dupont 6.7%50 6.2% 23$7.80 2

9 E King County 3.5%17 6.3% 19$14.30 10

10 E Pierce County 0.2%49 5.8% 33$7.88 45

11 E Tacoma 2.2%43 5.7% 34$8.36 30

12 Edmonds/Lynnwood 1.7%21 6.3% 18$13.39 40

13 Everett CBD 3.2%34 5.6% 39$10.40 12

14 Federal Way 2.9%27 7.3% 8$12.41 16

15 Fort Lewis 6.8%47 6.2% 22$8.17 1

16 Gig Harbor/W Pierce 1.4%19 7.2% 10$13.90 42

17 Greenwood/Fremont -0.1%11 5.4% 43$16.48 46

18 Gtown/Duwamish N 2.4%23 5.4% 42$12.64 25

19 Gtown/Duwamish S -1.5%29 4.4% 50$11.92 50

20 Kent Valley N 4.6%42 5.9% 31$8.38 4

21 Kent Valley S 4.1%40 5.7% 38$8.96 7

22 Kirkland 1.9%14 7.1% 12$15.15 37

23 Lake Union 2.0%2 7.4% 6$25.64 33

24 Lakewood 3.4%39 6.0% 27$9.02 11

25 Magnolia 2.1%16 5.5% 41$14.53 32

26 Mill Creek/N Creek 3.1%20 6.4% 17$13.58 14

27 N Snohomish County 2.6%36 5.7% 37$10.26 23

28 Newport/Issaquah 2.7%6 7.2% 11$18.37 19

29 North End Tacoma 1.1%37 5.7% 36$9.68 44

30 Northgate/N Seattle 2.4%15 6.1% 26$14.74 26

31 Parkland/Spanaway 2.8%44 5.4% 45$8.31 18

32 Port of Tacoma/Fife 4.5%45 5.9% 29$8.29 5

33 Puyallup/S Hill 4.8%46 5.9% 28$8.24 3

34 Queen Anne 2.0%9 7.2% 9$17.25 34

35 Rainier/Beacon Hill 1.9%24 5.5% 40$12.51 36

36 Redmond 2.6%13 7.6% 5$15.63 20

37 Renton 3.1%35 5.2% 48$10.27 15

38 S Everett/Harbor Pt 1.4%31 5.3% 46$11.27 43

39 S Snohomish County 2.8%32 6.4% 15$10.91 17

40 Seatac/Burien 3.6%28 5.9% 30$12.20 9

41 Seattle CBD 1.9%3 6.1% 25$20.93 35

42 SoDo -0.6%22 6.2% 21$13.26 49


Page 22

SUBMARKET RENT

Growth

Asking Rent

Per SFSubmarketNo.

12 Month Asking Rent Annualized Quarterly Rent

RankRank GrowthRank

43 Tacoma CBD 2.6%48 5.8% 32$8.13 22

44 Tukwila 2.2%30 6.1% 24$11.80 29

45 U. District/Ravenna 3.2%8 8.0% 4$17.64 13

46 University Place 2.4%38 5.3% 47$9.19 27

47 Vashon/Maury Isl 3.7%33 6.7% 13$10.87 8

48 W Seattle -0.3%25 4.8% 49$12.44 47

49 Waterfront 4.3%18 6.4% 16$13.91 6

50 Woodinville 1.8%26 6.3% 20$12.43 38


Page 23

SUBMARKET VACANCY & NET ABSORPTION

12 Month Net Absorption

Rank Construct. Ratio

Vacancy

SF % of InvSF PercentSubmarketNo. Rank

1 520 Corridor 35,739 3.3% -(16,957) -1.5% 3819

2 Auburn 1,004,204 3.6% -(277,000) -1.0% 4821

3 Ballard 127,979 4.7% -(5,315) -0.2% 3527

4 Bellevue 128,697 4.4% -(65,127) -2.2% 4324

5 Belltwn/Denny Regrade - - -5,375 2.7% 25-

6 Bothell/Kenmore 341,653 6.1% -38,448 0.7% 1535

7 Capitol Hill/Ctrl Dist In - - -869 0.1% 29-

8 Dupont 664,228 19.8% 334.11,988 0.1% 2744

9 E King County 92,817 2.5% -(15,555) -0.4% 3716

10 E Pierce County 140,002 18.2% 2.2102,726 13.3% 843

11 E Tacoma 37,994 1.1% -(273) 0% 319

12 Edmonds/Lynnwood 42,352 1.3% -(4,485) -0.1% 3410

13 Everett CBD 217,832 6.1% 3.166,181 1.9% 934

14 Federal Way 191,886 12.2% -(64,741) -4.1% 4242

15 Fort Lewis 212,850 38.6% -203,942 37.0% 445

16 Gig Harbor/W Pierce 4,500 0.6% -(2,690) -0.4% 335

17 Greenwood/Fremont 43,405 3.6% -(30,020) -2.5% 4020

18 Gtown/Duwamish N 1,057,961 7.2% -(68,170) -0.5% 4439

19 Gtown/Duwamish S 128,008 1.0% -(1,005) 0% 328

20 Kent Valley N 1,736,523 5.6% 6.936,970 0.1% 1632

21 Kent Valley S 1,186,144 5.8% -(425,963) -2.1% 5033

22 Kirkland 57,085 1.7% -4,650 0.1% 2613

23 Lake Union 15,285 0.9% -7,525 0.5% 237

24 Lakewood 68,969 1.4% -(9,078) -0.2% 3611

25 Magnolia 86,791 3.2% -14,614 0.5% 2118

26 Mill Creek/N Creek 7,999 0.5% -58,167 3.3% 104

27 N Snohomish County 242,093 3.9% 0.7161,636 2.6% 522

28 Newport/Issaquah 31,536 1.7% -(17,492) -0.9% 3912

29 North End Tacoma 67,496 2.9% 1.85,667 0.2% 2417

30 Northgate/N Seattle 5,719 0.4% -12,046 0.8% 222

31 Parkland/Spanaway 434,538 6.2% 10.841,753 0.6% 1336

32 Port of Tacoma/Fife 1,589,289 7.3% 1.3934,592 4.3% 140

33 Puyallup/S Hill 1,399,426 4.8% -(206,661) -0.7% 4628

34 Queen Anne 38,439 1.8% -34,184 1.6% 1714

35 Rainier/Beacon Hill 12,727 0.4% -33,625 1.0% 183

36 Redmond 386,163 4.6% -139,147 1.7% 626

37 Renton 460,532 4.2% -105,538 1.0% 723

38 S Everett/Harbor Pt 477,144 2.4% -(32,215) -0.2% 4115

39 S Snohomish County 206,095 6.2% 0.544,304 1.3% 1237

40 Seatac/Burien 650,321 11.5% 1.9377,737 6.7% 241

41 Seattle CBD - - -0 0% --

42 SoDo 555,359 5.0% -(356,471) -3.2% 4929


Page 24

SUBMARKET VACANCY & NET ABSORPTION

12 Month Net Absorption

Rank Construct. Ratio

Vacancy

SF % of InvSF PercentSubmarketNo. Rank

43 Tacoma CBD 90,966 6.7% -29,034 2.1% 1938

44 Tukwila 844,830 5.4% -(234,609) -1.5% 4730

45 U. District/Ravenna - - -1,645 0.1% 28-

46 University Place 235,090 4.4% -(73,618) -1.4% 4525

47 Vashon/Maury Isl 175,000 52.7% -45,000 13.5% 1146

48 W Seattle 27,035 0.7% -26,409 0.6% 206

49 Waterfront 2,120 0.2% -41,306 3.6% 141

50 Woodinville 388,930 5.5% 1.5298,046 4.2% 331


Page 25

OVERALL SUPPLY & DEMAND

Net AbsorptionInventory

% of Inv Construction RatioSF SF Growth % Growth SFYear

2023 2,568,358 0.8% 0.7%2,424,796 1.1340,790,518

2022 2,922,924 0.9% 0.6%1,954,376 1.5338,222,160

2021 3,448,855 1.0% 0.6%2,001,479 1.7335,299,236

2020 3,488,097 1.1% 0.4%1,365,610 2.6331,850,381

2019 4,540,748 1.4% 0.2%772,721 5.9328,362,284

YTD 3,517,038 1.1% -0.2%(613,409) -327,338,574

2018 5,950,750 1.9% 1.0%3,212,029 1.9323,821,536

2017 2,713,384 0.9% 1.4%4,434,500 0.6317,870,786

2016 2,814,944 0.9% 1.8%5,805,506 0.5315,157,402

2015 4,112,598 1.3% 1.5%4,783,044 0.9312,342,458

2014 2,114,524 0.7% 1.6%4,789,180 0.4308,229,860

2013 1,951,074 0.6% 1.1%3,267,862 0.6306,115,336

2012 71,175 0% 1.6%4,783,659 0304,164,262

2011 52,390 0% 0.9%2,837,567 0304,093,087

2010 (145,132) 0% -0.2%(580,419) -304,040,697

2009 1,727,658 0.6% -1.6%(4,774,231) -304,185,829

2008 4,364,429 1.5% 0.9%2,871,959 1.5302,458,171

2007 5,864,992 2.0% 2.3%6,961,400 0.8298,093,742

SPECIALIZED INDUSTRIAL SUPPLY & DEMAND



2023 68,780 0.1% -0.4%(388,250) -87,624,923

2022 78,240 0.1% -0.5%(460,365) -87,556,143

2021 92,340 0.1% -0.6%(481,954) -87,477,903

2020 58,422 0.1% -0.7%(634,995) -87,385,563

2019 121,678 0.1% -0.4%(383,402) -87,327,141

YTD 126,515 0.1% -0.4%(371,055) -87,331,978

2018 154,292 0.2% 0%32,930 4.787,205,463

2017 (467,126) -0.5% -0.8%(682,543) -87,051,171

2016 (40,014) 0% 0.6%549,400 -87,518,297

2015 545,990 0.6% 1.4%1,202,641 0.587,558,311

2014 211,203 0.2% 0.5%452,243 0.587,012,321

2013 49,013 0.1% 0.1%74,954 0.786,801,118

2012 336,365 0.4% 0.5%440,088 0.886,752,105

2011 (74,250) -0.1% 1.1%942,605 -86,415,740

2010 40,820 0% 0.3%252,737 0.286,489,990

2009 276,008 0.3% -0.8%(713,866) -86,449,170

2008 (23,871) 0% 0.1%65,065 -86,173,162

2007 375,215 0.4% 1.7%1,500,281 0.386,197,033


Page 26

LOGISTICS SUPPLY & DEMAND



2023 2,482,477 1.1% 1.3%2,978,019 0.8221,938,812

2022 2,825,233 1.3% 1.2%2,596,294 1.1219,456,335

2021 3,333,560 1.6% 1.2%2,658,544 1.3216,631,102

2020 3,415,191 1.6% 1.0%2,226,287 1.5213,297,542

2019 4,639,239 2.3% 0.6%1,274,505 3.6209,882,351

YTD 3,609,475 1.8% -0.1%(144,188) -208,852,587

2018 5,845,343 2.9% 1.5%3,089,885 1.9205,243,112

2017 3,154,478 1.6% 2.6%5,236,019 0.6199,397,769

2016 2,927,280 1.5% 2.3%4,577,070 0.6196,243,291

2015 3,670,400 1.9% 1.9%3,633,790 1.0193,316,011

2014 2,011,785 1.1% 2.0%3,728,547 0.5189,645,611

2013 1,913,082 1.0% 1.8%3,300,488 0.6187,633,826

2012 (281,475) -0.2% 1.8%3,405,297 -185,720,744

2011 126,640 0.1% 1.0%1,778,805 0.1186,002,219

2010 (251,951) -0.1% -0.3%(548,987) -185,875,579

2009 1,385,902 0.8% -1.9%(3,453,787) -186,127,530

2008 3,983,534 2.2% 1.6%2,963,872 1.3184,741,628

2007 5,385,477 3.1% 2.7%4,900,342 1.1180,758,094

FLEX SUPPLY & DEMAND



2023 17,101 0.1% -0.5%(164,973) -31,226,783

2022 19,451 0.1% -0.6%(181,553) -31,209,682

2021 22,955 0.1% -0.6%(175,111) -31,190,231

2020 14,484 0% -0.7%(225,682) -31,167,276

2019 (220,169) -0.7% -0.4%(118,382) -31,152,792

YTD (218,952) -0.7% -0.3%(98,166) -31,154,009

2018 (48,885) -0.2% 0.3%89,214 -31,372,961

2017 26,032 0.1% -0.4%(118,976) -31,421,846

2016 (72,322) -0.2% 2.2%679,036 -31,395,814

2015 (103,792) -0.3% -0.2%(53,387) -31,468,136

2014 (108,464) -0.3% 1.9%608,390 -31,571,928

2013 (11,021) 0% -0.3%(107,580) -31,680,392

2012 16,285 0.1% 3.0%938,274 031,691,413

2011 0 0% 0.4%116,157 031,675,128

2010 65,999 0.2% -0.9%(284,169) -31,675,128

2009 65,748 0.2% -1.9%(606,578) -31,609,129

2008 404,766 1.3% -0.5%(156,978) -31,543,381

2007 104,300 0.3% 1.8%560,777 0.231,138,615


Page 27

OVERALL RENT & VACANCY

Market Rent

Per SF Index % Growth Vs Hist PeakYear

Vacancy

SF Percent Ppts Chg

2023 164 0.9% 14.1%$11.99 20,494,155 6.0% 0%

2022 162 1.3% 13.0%$11.88 20,359,334 6.0% 0.2%

2021 160 1.8% 11.6%$11.72 19,393,482 5.8% 0.4%

2020 157 3.5% 9.6%$11.51 17,939,217 5.4% 0.6%

2019 152 5.9% 5.9%$11.13 15,811,798 4.8% 1.2%

YTD 148 3.3% 3.3%$10.85 15,964,674 4.9% 1.2%

2018 144 5.4% 0%$10.51 11,855,427 3.7% 0.8%

2017 136 8.4% -5.1%$9.97 9,116,706 2.9% -0.6%

2016 126 9.2% -12.4%$9.20 10,837,822 3.4% -1.0%

2015 115 5.9% -19.8%$8.43 13,756,062 4.4% -0.3%

2014 109 4.7% -24.3%$7.96 14,498,830 4.7% -0.9%

2013 104 3.6% -27.7%$7.60 17,173,486 5.6% -0.5%

2012 100 1.8% -30.2%$7.33 18,490,274 6.1% -1.6%

2011 99 2.2% -31.4%$7.21 23,202,758 7.6% -0.9%

2010 96 -1.3% -32.9%$7.05 25,987,935 8.5% 0.1%

2009 98 -2.4% -32.0%$7.14 25,552,648 8.4% 2.1%

2008 100 3.0% -30.4%$7.31 19,050,759 6.3% 0.4%

2007 97 4.3% -32.4%$7.10 17,558,289 5.9% -0.5%

SPECIALIZED INDUSTRIAL RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2023 151 1.0% 8.9%$11.19 4,533,800 5.2% 0.5%

2022 150 1.3% 7.9%$11.09 4,077,495 4.7% 0.6%

2021 148 1.6% 6.5%$10.94 3,539,169 4.0% 0.7%

2020 145 2.7% 4.8%$10.76 2,964,289 3.4% 0.8%

2019 142 2.0% 2.0%$10.48 2,270,340 2.6% 0.6%

YTD 139 0.3% 0.3%$10.30 2,262,772 2.6% 0.6%

2018 139 5.2% 0%$10.27 1,765,202 2.0% 0.1%

2017 132 7.9% -5.0%$9.76 1,643,840 1.9% 0.3%

2016 122 7.8% -11.9%$9.05 1,428,423 1.6% -0.7%

2015 113 5.9% -18.3%$8.40 2,017,837 2.3% -0.8%

2014 107 4.0% -22.8%$7.93 2,674,488 3.1% -0.3%

2013 103 2.9% -25.8%$7.62 2,915,528 3.4% 0%

2012 100 2.4% -27.9%$7.41 2,941,469 3.4% -0.1%

2011 98 1.7% -29.6%$7.24 3,045,192 3.5% -1.2%

2010 96 -1.8% -30.8%$7.11 4,062,047 4.7% -0.2%

2009 98 -2.1% -29.5%$7.25 4,273,964 4.9% 1.1%

2008 100 3.1% -28.0%$7.40 3,284,090 3.8% -0.1%

2007 97 4.0% -30.1%$7.18 3,373,026 3.9% -1.3%


Page 28

LOGISTICS RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2023 173 0.9% 14.5%$10.96 13,539,904 6.1% -0.3%

2022 171 1.3% 13.4%$10.86 14,043,229 6.4% 0%

2021 169 1.8% 12.0%$10.72 13,816,547 6.4% 0.2%

2020 166 3.4% 10.1%$10.53 13,135,131 6.2% 0.5%

2019 161 6.4% 6.4%$10.19 11,941,794 5.7% 1.6%

YTD 157 3.8% 3.8%$9.93 12,121,250 5.8% 1.7%

2018 151 5.7% 0%$9.57 8,388,787 4.1% 1.3%

2017 143 9.6% -5.4%$9.05 5,633,329 2.8% -1.1%

2016 130 10.5% -13.7%$8.26 7,714,870 3.9% -0.9%

2015 118 6.4% -21.9%$7.48 9,364,660 4.8% -0.1%

2014 111 5.4% -26.6%$7.02 9,328,050 4.9% -1.0%

2013 105 3.9% -30.4%$6.66 11,044,812 5.9% -0.8%

2012 101 1.3% -33.0%$6.41 12,432,218 6.7% -2.0%

2011 100 2.9% -33.8%$6.33 16,118,990 8.7% -0.9%

2010 97 -1.0% -35.7%$6.15 17,771,155 9.6% 0.2%

2009 98 -2.0% -35.0%$6.22 17,474,119 9.4% 2.5%

2008 100 3.0% -33.7%$6.34 12,634,430 6.8% 0.4%

2007 97 3.9% -35.6%$6.16 11,614,768 6.4% 0.1%

FLEX RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2023 156 1.0% 21.1%$21.25 2,420,451 7.8% 0.6%

2022 154 1.5% 20.0%$21.05 2,238,610 7.2% 0.6%

2021 152 2.4% 18.2%$20.73 2,037,766 6.5% 0.6%

2020 148 4.8% 15.4%$20.25 1,839,797 5.9% 0.8%

2019 141 10.2% 10.2%$19.32 1,599,664 5.1% -0.3%

YTD 136 6.3% 6.3%$18.64 1,580,652 5.1% -0.3%

2018 128 4.3% 0%$17.54 1,701,438 5.4% -0.4%

2017 123 4.8% -4.1%$16.82 1,839,537 5.9% 0.5%

2016 117 7.1% -8.5%$16.05 1,694,529 5.4% -2.1%

2015 110 4.2% -14.6%$14.98 2,373,565 7.5% -0.4%

2014 105 3.7% -18.0%$14.38 2,496,292 7.9% -2.2%

2013 102 3.8% -20.9%$13.87 3,213,146 10.1% 0.3%

2012 98 2.4% -23.8%$13.36 3,116,587 9.8% -2.9%

2011 96 0.7% -25.6%$13.05 4,038,576 12.7% -0.4%

2010 95 -1.2% -26.1%$12.97 4,154,733 13.1% 1.1%

2009 96 -3.9% -25.2%$13.13 3,804,565 12.0% 2.1%

2008 100 3.1% -22.1%$13.66 3,132,239 9.9% 1.7%

2007 97 6.5% -24.5%$13.25 2,570,495 8.3% -1.5%


Page 29

OVERALL SALES

Completed Transactions (1)

Turnover Avg Price/SFDeals VolumeYear

Market Pricing Trends (2)

Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate

2023 -- - -- 234- $203.20 5.3%

2022 -- - -- 227- $197.17 5.3%

2021 -- - -- 220- $190.82 5.3%

2020 -- - -- 212- $184.37 5.2%

2019 -- - -- 203- $176.28 5.2%

YTD $800.0 M145 1.7% $165.38$6,608,427 1975.6% $171.17 5.2%

2018 $2,438 M416 6.5% $157.21$7,233,791 1895.6% $164.30 5.2%

2017 $1,209 M301 2.7% $168.69$4,936,818 1705.9% $147.87 5.3%

2016 $1,781 M405 4.7% $126.00$4,657,048 1536.2% $132.55 5.5%

2015 $1,595 M430 6.7% $128.17$5,647,267 1376.1% $118.63 5.8%

2014 $986.3 M311 3.5% $93.17$3,304,415 1246.8% $107.83 6.0%

2013 $1,143 M286 4.3% $91.18$4,601,537 1146.4% $99.11 6.2%

2012 $991.2 M278 4.0% $83.04$4,148,680 1076.5% $92.91 6.4%

2011 $614.5 M162 2.7% $74.90$4,118,245 1027.9% $88.61 6.6%

2010 $468.5 M150 1.9% $82.79$3,360,215 967.8% $83.03 6.9%

2009 $357.7 M114 1.4% $84.64$3,321,031 918.6% $79.37 7.2%

2008 $714.9 M244 2.4% $104.13$3,186,061 1006.3% $86.82 6.9%(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

SPECIALIZED INDUSTRIAL SALES





2023 -- - -- 231- $193.48 5.3%

2022 -- - -- 223- $187.56 5.3%

2021 -- - -- 216- $181.36 5.2%

2020 -- - -- 209- $175.25 5.2%

2019 -- - -- 200- $167.98 5.1%

YTD $201.5 M33 1.7% $170.50$7,197,126 1955.9% $163.81 5.1%

2018 $478.8 M99 5.2% $144.66$5,839,096 1875.3% $157.37 5.1%

2017 $279.5 M67 2.3% $171.57$4,819,407 1685.6% $141.41 5.3%

2016 $252.3 M73 2.8% $102.72$3,456,834 1506.7% $126.18 5.5%

2015 $258.6 M67 3.2% $110.60$4,789,292 1356.5% $113.32 5.7%

2014 $373.3 M90 4.7% $92.27$4,242,324 1236.8% $103.03 5.9%

2013 $160.0 M52 2.2% $96.30$3,720,574 1136.4% $95.10 6.1%

2012 $143.6 M53 1.9% $92.25$2,991,711 1077.9% $89.52 6.3%

2011 $157.0 M43 2.7% $69.18$3,830,329 1027.6% $85.58 6.5%

2010 $41.2 M27 0.7% $71.23$1,646,873 967.8% $80.16 6.8%

2009 $87.8 M34 0.9% $116.25$2,580,931 9110.7% $76.59 7.1%



Page 30

LOGISTICS SALES





2023 -- - -- 237- $190.49 5.4%

2022 -- - -- 230- $184.90 5.4%

2021 -- - -- 223- $179.04 5.3%

2020 -- - -- 216- $173.03 5.3%

2019 -- - -- 206- $165.36 5.2%

YTD $543.5 M103 1.9% $161.38$6,315,647 2005.5% $160.40 5.2%

2018 $1,354 M232 6.4% $151.03$7,825,241 1925.2% $153.88 5.2%

2017 $713.1 M186 2.6% $167.72$4,858,328 1725.6% $137.68 5.4%

2016 $1,116 M232 4.6% $128.17$5,191,704 1535.9% $123.16 5.6%

2015 $790.3 M243 7.4% $104.35$4,863,902 1375.9% $110.12 5.8%

2014 $518.5 M190 3.0% $92.35$2,859,092 1256.8% $100.22 6.1%

2013 $769.3 M179 5.1% $82.55$4,677,887 1155.8% $92.00 6.3%

2012 $723.1 M174 5.1% $77.42$4,560,924 1076.0% $86.17 6.5%

2011 $375.0 M95 2.8% $73.17$4,117,459 1027.6% $82.10 6.7%

2010 $322.5 M94 2.5% $73.21$3,696,115 967.8% $76.88 7.0%

2009 $244.3 M67 1.8% $74.06$3,791,437 927.9% $73.48 7.3%


FLEX SALES





2023 -- - -- 227- $316.71 5.4%

2022 -- - -- 221- $307.38 5.4%

2021 -- - -- 213- $297.28 5.4%

2020 -- - -- 206- $286.84 5.4%

2019 -- - -- 196- $273.63 5.3%

YTD $55.0 M9 0.9% $191.18$7,850,651 190- $264.86 5.3%

2018 $605.2 M85 10.4% $187.18$7,380,673 1836.9% $254.39 5.3%

2017 $216.4 M48 4.5% $168.25$5,393,552 1696.6% $235.13 5.4%

2016 $411.9 M100 10.6% $138.93$4,371,933 1546.4% $214.13 5.5%

2015 $546.3 M120 11.5% $215.56$8,272,052 1376.2% $191.22 5.8%

2014 $94.5 M31 2.9% $102.06$3,237,779 1247.1% $172.92 6.1%

2013 $214.0 M55 5.8% $137.32$5,220,070 1147.7% $158.57 6.3%

2012 $124.5 M51 3.5% $119.75$3,848,681 1067.7% $148.10 6.5%

2011 $82.4 M24 2.9% $101.90$4,816,834 1018.7% $141.29 6.7%

2010 $104.9 M29 2.1% $155.12$3,864,301 957.7% $132.79 6.9%

2009 $25.7 M13 0.6% $148.60$2,771,861 91- $127.05 7.2%



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Documents

PREPARED BY Norman Ives Designated Broker · Deliveries SF 6.7 M 3,604,600 4,123,165 7,489,172 2007 Q1 133,370 2012 Q1 Rent Growth 5.9% 3.2% 2.5% 9.4% 2017 Q1 -2.5% 2010 Q3 Sales