Subject Property Schuster St Las Vegas, NV SW Las Vegas Ind. LOCATION Distance to Seaport:

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1 Subject Property 6615 Schuster St Las Vegas, NV SW Las Vegas Ind LOCATION Distance to Airport: 6.2 mi Distance to Seaport: mi Distance to Rail Terminal: 6.7 mi Population 500 Mile Radius: 54,105,129 Population 250 Mile Radius: 21,370,925 Population 50 Mile Radius: 2,217,026 OWNER Purchased 1/7/2019 Price $1,460,000 ($191.35/SF) PROPERTY Type: Warehouse Tenancy: Single Park: Martin Hinson Business Park Construction: Reinforced Concrete RBA: 7,630 SF Column Spacing: - Year Built/Renov: 2006 Truck Wells: None Ceiling Height: 22' Rail Served: - Docks: None Sprinklers: - Drive Ins: 1 tot./10'w x 12'h Power: - Truck Court: - Cranes: None Land Acres: 0.35 AC Levelators: None Office: 2,068 SF Taxes: $0.49 (2018) Parking: 12 free Surface Spaces are available; Ratio of 1.57/1,000 SF Features: - VACANCY Current: Last Quarter: 100% 100% Year Ago: 0% Peers: 38.5% Peer Submarkets: 3.4% ASKING RENT PER SF Current: Last Quarter: - - Year Ago: - Peers: $0.92 Peer Submarkets: $ MO. LEASING ACTIVITY SF Subject Property: Peers Total: - 29,102 Peers Count: 17 Peers Avg: 1,711 Peer Submarkets Total: 2,113,465 Peer Submarkets Avg: 1,409 AVAILABLE SPACES Space Type Square Feet Floor Suite Use Type Occupancy SF Avail Bldg Contig Rent P 1st - Industrial Relet Vacant 7,630 7,630 Withheld All Spaces 7,630 7,630 - Listing Company Las Vegas Realty LLC Page 1

2 Subject Property KEY TENANTS Tenant Industry Floor SF # Emps Move Date Exp Date Glenn Rieder Inc Manufacturing 1,MEZZ 7,630 4 Apr CoStar Research Moving Out Moving In My Data Shared Data Page 2

3 Subject Property Primary Building Page 3

4 Subject Property PRIMARY LEASING COMPANY Las Vegas Realty LLC 3130 S Rainbow Blvd, Suite 301 Las Vegas, NV (702) lasvegasrealtyllc.com Matthew Beach (702) (p) (702) (m) mbsellsvegas@gmail.com Page 4

5 Market Summary 6615 Schuster St 7,630 SF Industrial Warehouse PREPARED BY Matthew Beach

6 SW Las Vegas Submarket Summary SW Las Vegas Industrial The Southwest Las Vegas Submarket is strategically positioned next to McCarran International Airport. It is the metro's second-largest industrial submarket, with around 30 million SF of inventory, more than 22 million SF of it logistics space. Most logistics properties are within one mile of both I-15 and the Union Pacific Railroad, partly because a large portion of the submarket is desert land. Even though Southwest Las Vegas is the second-largest submarket in terms of overall inventory, its tenant base differs from the larger North Las Vegas Submarket s. While North Las Vegas features more third-party logistics assets and national retail distribution centers, the Southwest has more local tenants, such as Freeman Audio Visual and MCM Mirage Design Center, that cater to their in-market Vegas locations. New development was late to return to Southwest Las Vegas this cycle, and the pace of building is restrained compared to in the previous cycle. More than 550,000 SF delivered in 2017, and after minimal construction in the first half of 2018, new development has increased to around 1 million SF, with a couple of significant projects under way. Net absorption has exceeded 500,000 SF each calendar year since 2013, more than enough to outpace the supply additions. The vacancy rate is healthy at 2.9%, well below the submarket s historical average and the 2010 peak of around 16%. Rent growth continues to be robust at 6.0% following strong growth the past several years. Sales in 2018 were minimal following a moderate One of the recent notable transactions was the December acquisition of an 80,000 SF building by Broadstone Real Estate for $16.2 million ($203/SF). SunTrust Robinson Humphrey, Inc., sold the 100% leased warehouse, built in Another notable deal was the April trade of a 91,858 SF building to owner/user Lobostar Inc. for $10 million ($109/SF) by the Tiberti Organization NET ABSORPTION, NET DELIVERIES & VACANCY Page 6

7 Las Vegas Market Summary Las Vegas Industrial The Las Vegas logistics market stands to benefit from its favorable location, which enables it to provide overnight service to both Southern California and large portions of Arizona. The city of Las Vegas legislature passed a resolution in 2009 to promote the metro as a major West Coast logistics center through infrastructure improvements and by leveraging existing rail lines and air freight facilities. This is part of an effort to diversify the local economy, and government officials in North Las Vegas have attempted to lure new companies with quick permitting and financial incentives. Infrastructure improvements to roadways are ongoing; the Nevada Department of Transportation began a multiyear, multiphase, $200 million-plus upgrade of U.S. 95 in Also in progress is the $1.5 billion Project Neon, which promises to widen 3.7 miles on I-15 and provide a direct connection between U.S. 95 and I-15 while improving the Spaghetti Bowl interchange. Project Neon is approximately 90% complete, with completion set for Developers have already inundated the metro, particularly the North Las Vegas Submarket, but healthy demand has helped keep vacancies relatively stable. NET ABSORPTION, NET DELIVERIES & VACANCY Page 7

8 Las Vegas Economic Summary Las Vegas Industrial Las Vegas s recovery continues, after getting off to a slow start, bolstered by healthy job and population growth. Annual job growth in the Las Vegas metro has averaged around 3% over the past five years, based on numbers from the U.S. Bureau of Labor Statistics. The Las Vegas metro has seen steady growth in the number of people moving to the area this cycle, and approximately two-thirds of the population growth has come from in-migration from other states, with a significant portion from southern California metros. While state and local officials are working to diversify the economy, the leisure and hospitality sector remains Las Vegas primary economic driver. With nearly one in three jobs based in the sector, the metro s economic success is inherently tied to tourism. Visitor numbers from the Las Vegas Convention and Visitors Authority are looking strong, with the metro attracting more than 40 million each of the past three years, an all-time record. A strengthening national economy will certainly help Las Vegas s cause as increased disposable income encourages even more tourists and attracts visitor dollars to the metro. The construction industry has made a strong recovery recently after being hit hard by the collapse of the housing market during the recession. Annual employment growth in the construction sector over the past five years has averaged around 10%. However, the number of workers still remains at only approximately 60% of prerecession levels. The metro employed more than 110,000 construction workers, or about 12% of the overall employment base, in 2006; today, construction makes up around 6% of employment. The construction sector is likely to see continued growth over the next few years, with a number of large projects currently under way in Las Vegas, most located proximate to the Strip. One is the Genting Group s $4 billion Resorts World Las Vegas, with the initial phase estimated to include around 3,000 rooms and a 100,000- SF casino. That project alone is expected to add 30,000 constructions jobs. Two other large hotel projects are also slated to open in the next couple of years: The Drew Las Vegas (formerly Fontainebleau) with an estimated 4,000 rooms and Wynn Las Vegas s Paradise Park with around 1,500 rooms. One of the most significant projects in the metro is the new 65,000-seat indoor stadium for the Las Vegas Raiders that recently broke ground. The Raiders and Las Vegas Stadium Authority are partnering to build the stadium, which is estimated to open for the 2020 season. As of late 2018, there are around 900 construction workers on site, along with about 100 administrators, but it is expected to eventually employ about 1,500 workers when the project hits its peak. The state-backed economic impact report on the stadium is estimating a total economic output of $620 million, as well as $35 million new tax dollars each year. Those projections are based on the stadium hosting 46 events per year and drawing approximately 450,000 new visitors. The report also estimates that the stadium would create an additional around 5,900 permanent jobs throughout the region. Page 8

9 Las Vegas Economic Summary Las Vegas Industrial LAS VEGAS EMPLOYMENT BY INDUSTRY IN THOUSANDS NAICS Industry Jobs LQ Market US Market Manufacturing Trade, Transportation and Utilities Retail Trade Financial Activities Government Natural Resources, Mining and Construction Education and Health Services Professional and Business Services Information Leisure and Hospitality Other Services Current Jobs Current Growth 10 Yr Historical 5 Yr Forecast % 1.70% 1.74% 0.62% 2.96% 10.72% 4.52% 5.90% -0.84% 2.10% 1.14% 0.26% 1.37% 0.25% 4.41% 2.00% 2.75% -0.55% 0.47% 1.45% 1.41% 1.15% 0.52% -2.02% 4.37% 3.24% 0.53% US -0.09% 0.81% 0.64% 0.65% -0.08% 0.66% 2.07% 2.07% -0.56% Market -0.62% 0.66% 0.67% 1.53% 0.87% 2.13% 2.44% 1.52% 0.28% US -1.44% Total Employment 1, % 1.67% 1.51% 1.04% 1.49% 0.56% YEAR OVER YEAR JOB GROWTH 2.77% 5.30% 1.69% 1.06% 1.33% 3.09% 2.17% 0.73% 2.02% 0.62% 0.15% 0.19% 0.62% 0.52% 1.21% 1.01% 1.23% 0.06% 1.02% 0.23% Source: Moody's Analytics LQ = Location Quotient Source: Moody s Analytics Page 9

10 Las Vegas Economic Summary Las Vegas Industrial DEMOGRAPHIC TRENDS Current Level Current Change 10-Year Change Forecast Change (5 Yrs) Demographic Category Metro U.S. Metro U.S. Metro U.S. Metro U.S. Population 2,286, ,132, % 0.7% 1.7% 0.7% 2.4% 0.6% Households 836, ,743, % 0.9% 1.6% 0.8% 2.6% 1.0% Median Household Income $61,121 $63, % 3.6% 0.7% 2.1% 2.5% 2.8% Labor Force 1,114, ,841, % 1.4% 1.3% 0.5% 1.8% 0.8% Unemployment 4.4% 3.7% -0.7% -0.4% -0.4% -0.3% - - Source: Moody s Analytics POPULATION GROWTH LABOR FORCE GROWTH INCOME GROWTH Source: Moody's Analytics Page 10