Baltimore I-95 North

Industrial Market Review Third Quarter 2011

Baltimore Metropolitan Overview The Greater Baltimore Metropolitan area is emerging as one of the strongest second-tier markets in the United States. While Baltimore is a stand-alone metropolitan statistical area (MSA) with over 2.6 million residents, it is also part of the Washington-Baltimore consolidated statistical area (CSA) with a total population over 8 million. The Greater Baltimore region comprises Anne Arundel, Baltimore, Carroll, Cecil, Harford and Howard Counties as well as Baltimore City. As of August 2011, the Baltimore metropolitan areas unemployment rate was 7.9%, and the national unemployment rate was 9.1% for the same month. Baltimore I-95 North Industrial Market Baltimores I-95 North Industrial Market is located between the Harbor Tunnel through Baltimore City East and Baltimore County East continuing along I-95 North through Harford and Cecil counties. These four submarkets support over 64 million square feet of industrial space. A strong labor pool, close proximity to major interstates including I-95, and proximity to the Ports of Baltimore and Wilmington, Delaware make the I-95 North industrial market a vibrant marketplace for investors, users and tenants alike. This bulk industrial submarket has both institutional (First Industrial Realty Trust, Liberty Property Trust, ProLogis, RREEF, TA Associates) as well as build-to-suits for many Fortune 500 companies.

Current Market Trends Rental Rates Rental rates are still holding steady as compared to last quarter. However, towards the end of the quarter, landlords seemed to be getting more aggressive with rates. Leasing activity leveled off through the summer months in the I-95 North submarket. Activity levels are still off from pre-recession levels. Tenant concessions, in the way of free rent, increased tenant improvement dollars and, in some cases, moving allowances are still prevalent.

Q3 2011 Vacancy Rates & Average Quoted Rental Rates

Vacancy Rate Product Type Flex Office Warehouse Bulk I-95 North Totals By Submarket City East County East Cecil County Harford County I-95 North Totals Average Quoted Rental Rate By Submarket City East County East Cecil County Harford County I-95 North Totals Flex $13.90 $9.75 $4.00 $7.97 $9.91 O/W $4.97 $4.21 $3.73 $6.14 $5.05 Bulk $3.59 $3.70 $2.92 $4.97 $4.07 Average $4.50 $3.83 $3.31 $5.32 $4.43
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Leasing Activity

# Of Buildings 90 375 222 687 # Of Buildings 249 203 42 193 687

SF 2,177,310 15,897,280 44,655,176 62,729,766 SF 16,328,605 20,417,814 7,422,423 18,560,924 62,729,766

SF Vacant 204,216 1,919,721 5,007,323 7,131,260 SF Vacant 1,646,067 2,381,992 509,237 2,593,964 7,131,260

Vacancy Rate 9.38% 12.08% 11.21% 11.37% Vacancy Rate 10.08% 11.67% 6.86% 13.98% 11.37%

Tenant Concessions

BALTIMORE I-95 NORTH INDUSTRIAL THIRD QUARTER 2011

Behind the Numbers

6.51% 10.50% Vacancy Rate of front-loaded buildings that are located in the Baltimore County East submarket Vacancy Rate of rear-loaded buildings that are located in the Baltimore County East submarket

For more information, contact one of our Industrial Brokers: Cassidy Turley 100 Light Street Suite 1400 Baltimore, MD 21202 Tel: 410.752.4285 Fax: 410.576.9031 www.cassidyturley.com

Notable Q3 2011 Lease Transactions

Property Size Term Yr. 1 Rent/Esc. TI PSF Tenant Landlord Type

5003 Holabird Avenue Baltimore, MD

161,000 SF 5 Years $4.50/3% $1.50 A&S Services Duke Realty New

9003 Yellow Brick Road Rossville, MD

15,000 SF 7 Years $5.10/3% $1.00 Johnstone Supply Knott New

21 Fontana Lane Rosedale, MD

21,000 SF 10 Years $5.50 NNN/2.5% As-is Confidential RREEF New

About Cassidy Turley Cassidy Turley is a leading commercial real estate services provider with more than 3,400 professionals in more than 60 offices nationwide. The company represents a wide range of clientsfrom small businesses to Fortune 500 companies, from local non-profits to major institutions. The firm completed transactions valued at $18 billion in 2010, manages 455 million square feet on behalf of private, institutional and corporate clients and supports more than 25,000 domestic corporate services locations. Cassidy Turley serves owners, investors and occupiers with a full spectrum of integrated commercial real estate servicesincluding capital markets, tenant representation, corporate services, project leasing, property management, project and development services, and research and consulting. In 2010, the firm enhanced its global service delivery outside of North America through its partnership with GVA. Please visit www.cassidyturley.com for more information about Cassidy Turley.
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Cassidy Turley Industrial Market Statistical Overview July 1, 2011 - September 30, 2011
Submarket Cassidy Turley Classification Number of Buildings

BALTIMORE I-95 NORTH INDUSTRIAL THIRD QUARTER 2011

Total Size (SF)

Total Available (SF)

Vacancy Rate

Sublet Available (SF)

Baltimore City East City East Highland Holabird-Point Breeze Mid-town Moravia-Shannon Industrial Total Baltimore County East Baltimore Crossroads Canton-Quad Industrial Golden Ring Industrial Marshfields Business Park North Point Rd Ind Corridor Rosedale Industrial Rossville-Pulaski Industrial White Marsh Industrial Total Cecil County Cecil Industrial Total Harford County Aberdeen Industrial Forest Hill Harford Route 24 Industrial Havre de Grace Joppa Perryman Peninsula Industrial Riverside Total Grand Total 17 80 35 9 17 6 29 193 687 3,651,704 1,432,074 3,890,876 1,897,866 377,606 3,276,226 4,034,572 18,560,924 62,729,766 562,615 70,225 511,370 190,070 58,502 490,068 711,114 2,593,964 7,131,260 15.41% 4.90% 13.14% 10.01% 15.49% 14.96% 17.63% 13.98% 11.37% 0 0 7,935 0 0 340,244 70,133 418,312 692,128 42 42 7,422,423 7,422,423 509,237 509,237 6.86% 6.86% 0 0 13 49 11 4 18 20 58 30 203 4,327,010 3,763,170 539,312 1,341,995 2,985,207 1,103,632 3,494,218 2,863,270 20,417,814 998,114 108,199 103,668 272,500 105,741 111,414 427,109 255,247 2,381,992 23.07% 2.88% 19.22% 20.31% 3.54% 10.10% 12.22% 8.91% 11.67% 0 0 0 0 0 0 0 48,600 48,600 129 9 46 34 31 249 6,723,632 1,003,090 5,772,505 1,530,523 1,298,855 16,328,605 1,018,439 0 197,036 140,710 289,882 1,646,067 15.15% 0.00% 3.41% 9.19% 22.32% 10.08% 0 0 217,216 8,000 0 225,216

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