YEAR-END 2010 INDUSTRIAL MARKET SURVEY JACKSONVILLE

YEAR-END 2010 INDUSTRIAL MARKET SURVEY JACKSONVILLE

2010 [ MARKET TOTALS ] Overall Market A generally positive trend in 2010 indicators points to a slow, varying recovery for the Jacksonville Metropolitan Area (MSA) industrial sector. Vacancy rates fell by almost one-third vs. 2009 (18.5 % vs. 12.4 %), while overall absorption stabilized after a dismal 2009, showing clear signs of increased business activity and expansion. JACK SO NVI LLE REAL ESTATE MARKET OVERVIEW YEAR END 2009 YEAR END 2010 TOTAL INVENTORY SF 92 MILLION TOTAL INVENTORY SF 92.3 MILLION VACANCY RATE 18.5% ABSORPTION (Y-T-D) (2,100,000) VACANCY RATE 12.4% ABSORPTION (Y-T-D) (34,844) COMPLETED CONSTRUCTION 2,900,000 SF* COMPLETED CONSTRUCTION 268,000 SF SIGNIFICANT 2010 LEASES * Excludes Build-To-Suits PROJECT NAME LOCATION SIZE TENANT SUBMARKET WESTLAKE/N.S. PRITCHARD ROAD 240,000 SF PENSER SC WESTSIDE FORMER WINN-DIXIE WAREHOUSE COMMONWEALTH AVE 553,151 SF FOOTBALL FANATICS WESTSIDE WESTSIDE INDUSTRIAL PARK BULLS BAY HIGHWAY 250,000 SF FALKEN TIRES WESTSIDE NORTHPOINT INDUSTRIAL PARK PORT JACKSONVILLE PARKWAY 96,000 SF APR ENERGY NORTHSIDE NORTHPOINT INDUSTRIAL PARK PORT JACKSONVILLE PARKWAY 70,020 SF CROWLEY NORTHSIDE SIGNIFICANT 2010 SALES BUILDING BUYER SIZE PURCHASE PRICE SUBMARKET 600 WHITTAKER ROAD USAA REAL ESTATE CO. 474,579 SF $18,900,000 NORTHSIDE 3660 DEERPARK BLVD CB RICHARD ELLIS INVESTORS 347,144 SF $15,750,000 ST. JOHNS COUNTY 6830 HIGHWAY AVE AND 6831 STUART AVE PAUL AND ELEANOR SADE REVOCABLE TRUST 245,174 SF $10,650,000 WESTSIDE 3050 MELSON AVE 8831 MONCRIEF-DINSMORE ROAD INSTEEL WIRE PRODUCTS COMPANY 157,156 SF $2,711,268 WESTSIDE CONGLOBAL INDUSTRIES 63,082 SF $4,000,000 WESTSIDE SIGNIFICANT 2010 CONSTRUCTION ACTIVITY BUILDING COMPLETION DATE SIZE TENANT SUBMARKET 11001 PRITCHARD ROAD AUGUST 2010 240,000 SF PENSER SC WESTSIDE SIGNIFICANT 2010 PROJECTS UNDER CONSTRUCTION/RENOVATION BUILDING COMPLETION DATE SIZE TENANT SUBMARKET WESTSIDE INDUSTRIAL PARK/ FALKEN TIRE BLDG MARCH 2011 250,000 SF FALKEN TIRE WESTSIDE Information deemed reliable, but not guaranteed. 2 Peter Crolius, SIOR 904.281.0003 peterc@grahamcompany.com 550 Water Street Suite 1225 Jacksonville, FL 32202

MAJOR LAND PROJECTS Land / Location Ownership 1 2 3 4 5 6 7 Lem Turner Industrial Park/Lem Turner Road North JAX Investment Group, LLC Woodwings West/ Pecan Park Road @ I-295 Jacksonville Aviation Authority (JAA) Woodwings East/ Duval Road @ I-295 Jacksonville Aviation Authority (JAA) Jacksonville North Commerce Park/ NW Quad of I-95 and Pecan Park Road Pecan Park Road Investments, LLC Jacksonville Interstate Commerce Park/I-95 @ Pecan Park Road Benderson Pecan Park Distribution Center/ US 17/Pecan Park Road @ I-95 Schafer New Berlin Distribution Center Logan Holtz, et. al. Submarket Northside Northside Northside Northside Northside Northside Northside Industrial Land Area Total Planned Entitlements 500 Acres 890 Acres Mixed-Use/327 Light Industrial 328 Acres Mixed-Use / 300 Light Industrial 93 Acres 319 (Ind.) 117 Acres 160 Acres 4.8M SQ FT 3.5M SQ FT 3.5M SQ FT 1M SQ FT 4.6M SQ FT 1.3M SQ FT 2.5M SQ FT IL Zoning with Fair- Share Agreement and Concurrency In-Place w/city of Jacksonville Part of JIA DRI Part of JIA DRI PUD with Fair-Share Agreement In-Place w/city of Jacksonville Zoning/Concurrency In-Place Zoning/Concurrency In-Place Existing Buildings 0 0 0 0 0 0 0 Fully-entitled w/ concurrency Rail Service N/A N/A N/A N/A CSX N/A N/A Planned 2011 Comments None None None None None None None Utilities located 1200 feet from the property Master Plan includes 150 acre golf course Under J.V. contract with Majestic Site has additional 22 acres for retail/ commercial use Ownership will sell land or B-T-S Ownership will sell land or B-T-S Owners will sell lots, B-T-S, some speculative development Land / Location Ownership 8 9 10 11 12 13 14 Port Jax Trade Center/S@-9A and Alta Drive Group IV Port Authority Center/3515 Heckscher Drive PLANET Five/AllFr8 Logistics, Inc. Cecil Commerce Center/Cecil Commerce Center Parkway Jointly Owned and Administered by JEDC (11,000 Acres) and JAA (6,000 Acres) Westlake Industrial Park/ Norfolk Southern Railroad ProLogis/ Pritchard Road Prologis Majestic @ Westlake/ Majestic Liberty Property Trust @ Imeson Road and Moncrief Road Liberty Property Trust Submarket Northside Northside Westside Westside Westside Westside Westside Industrial Land Area 31 Acres 26 Acres Total Planned Entitlements Existing Buildings 475,000 SQ FT 250,000 SQ FT Fully-entitled and Pad-ready 82,000 fullyoccupied B-T-S with W & O, 82,000 spec warehouse with 57,000 sq ft vacant. 17,000 of which 4,000 is commercially developable SAFT America: 143,000 SQ FT (2010) 1,500 Acres (300 ind.) 95 Acres 14 Acres 118 Acres 2.17M SQ FT 1,598,875 SQ FT 183,500 SQ FT N/A DRI Westlake DRI Part of Westlake DRI Westlake DRI 0 Over 30 tenants, including Bridgestone Tire's recently-completed 1M sq ft warehouse on 63.3 acres Rail Service N/A CSX CSX Planned 2011 Comments Unilever (772,200 SQ FT); ING (400,000 SQ FT); Johnson (546,000 SQ FT); BJ's Warehouse (460,972 SQ FT); JM Family (283,000 SQ FT); Penser (250,000 SQ FT) Norfolk Southern Railroad 1M SQ FT among 6 bldgs 126,000-166,000 Fully-entitled w/ concurrency 0 0 0 N/A N/A N/A 70,300 SQ FT 0 0 None None None None Owner has up to 6 designed and permitready building plans for end-users. Planned development includes a hotel and small-pad retail North 4,500 Acres Under Master Developer contract with Hillwood Investment Properties Norfolk Southern sells land only; no vertical development Phases 1 and 2 include 2-486,400 SQ FT cross-dock warehouses 2 Buildings Planned: 100,700 SQ FT and 82,500 SQ FT Flexible development plan includes both large cross-dock and service-center buildings. 3

MAJOR INDUSTRIAL PROJECTS Project Name/ Location Ownership 1 2 3 4 5 6 7 8 9 Majestic International Tradeport/ Airport Road and Tradeport Road Majestic Creekside @ Tradeport/ Alvarez Road Jackson-Shaw Tradeport Business Park/ Airport Road and Duval Road Flagler Imeson International Industrial Park/ Heckscher Drive and North Main Street Webb International Northpoint Industrial Park/ New Berlin and Faye Roads Pattillo Northport Logistics Center/11530 New Berlin Road Oakmont Alta Lakes Commerce Center/Blasius and Faye Roads Cabot Properties, Inc. Westlake Industrial Park/ Johnson Westside Industrial Park/ West of I-295 Pattillo Submarket Northside Northside Northside Northside Northside Northside Northside Westside Westside Land Area 47 Acres 26 Acres 93 Acres Existing Developer- Owned Inventory Total Availability Current Vacancy Largest Contiguous Planned for Delivery Within 12 Months Quoted Rates (PSF) 318,000 SQ FT Building and 520,000 SQ FT Building 120,360 334,930 among 3 Buildings 240,605 in 2 bldgs: 94,325 and 146,280 1,329,800 among 16 Buildings 151,834 among 4 Buildings 1,500 Acres. 505 industrial acres for sale 950,000 280,000 300 Acres 58 Acres 66 Acres 182 Acres 960 Acres 672,438 among 6 Bldgs 390,200 among 4 Buildings 872,627 1 Building 570,240 among 4 Buildings 546,000 1 Building 872,627 518,243 0 4,490,000 895,000 among 13 Buildings 14% 72% 11% 29% 58% 100% 91% 0% 20% 120,360 146,280 73,234 280,000 186,650 872,627 192,248 0 168,000 0 0 0 0 0 0 0 0 0 $4.25 $4.75 $4.25 NNN $3.25 - $4.50 NNN $3.00 - $5.00 NNN $4.25 $4.75 $3.00 - $4.00 NNN $3.00 - $4.25 NNN Clear Height 32 28 24-30 23-30 30 32 28 32 24-30 Truck Court 140 115 115-150 130 180 135-145 120-185 150 150-180 Potential Additional Developable Building Area 0 0 Approximately 350,000 SQ FT Up to 18M SQ FT 2.65M SQ FT 0 300,000 SQ FT 221,000 SQ FT (1 building planned) Approximately 5M SQ FT Rail Service N/A N/A N/A CSX N/A N/A N/A N/A N/A Project Name/ Location Ownership 10 11 12 13 14 15 16 17 18 Perimeter West Industrial Park/ I-295 and ING Clarion Crossroads Distribution Center/6600 Republic Westside Dist. Center/ N. Ellis Road Eastgroup Properties, Inc. Bowden Commerce Center/ Salisbury Road Sealy & Company Center Point/ U.S. 1 Liberty Property Trust Salisbury Business Park/7251 Salisbury Road Liberty Property Trust Interstate Distribution Center/8475 Western Way Eastgroup Properties, Inc. Lakepointe Business Park/ Western Way EastGroup First Coast Distribution Center/SR 207 at I-95 St. Johns County Fountain Partners Submarket Westside Westside Westside Southside Southside Southside Southside Southside Southside Land Area 75 Acres 129 Acres 18 Acres 55 Acres 71 Acres 25 Acres 11 Acres 29 Acres 80 Acres Existing Developer- Owned Inventory Total Availability Current Vacancy Largest Contiguous Planned for Delivery Within 12 Months Quoted Rates (PSF) 260,000 Existing Volkswagen B-T-S 126,056 (Building #2) 425,240 3 Buildings leased 105,420/ 2 Buildings 0 126,056 0 38,500 614,000 among 13 Buildings 161,100 among 8 Buildings 127,120/ 2 Buildings 181,120/ 2 Buildings 375,125 among 9 Buildings 203,000 34,222 0 103,557 48,000 0% 0% 0% 37% 26% 27% 0% 28% 24% N/A 126,056 0 38,500 42,000 19,490 N/A 78,425 48,000 174,460 0 0 0 0 0 0 0 0 $5.25 $4.75 $3.00 $6.50 $4.00 - $7.00 $5.50 - $6.50 $4.50 $3.25 - $6.50 $4.50 Clear Height 30 30 32-36 24 20 22 24 16-22 32 Truck Court 110-115 100 125 150 100-120 130 110 100 130 Potential Additional Developable Building Area Cross-Dock Design 139,400 and 195,000 planned 2 add l bldgs 550,000 SQ FT, 3 Additional Buildings Planned Ranging from 100,000-300,000 SQ FT 0 Additional 7.5 acres available. Up to 85,000 additional sq ft. Part of a total 490,000 sq ft mixed-use development. 0 179,000 SQ FT consisting of 2 Buildings: 91,000 and 68,000 SQ FT 0 0 800,000 Rail Service N/A N/A CSX N/A N/A N/A N/A N/A N/A 4

NORTHSIDE JACKSONVILLE, FLORIDA 4 5 6 JACKSONVILLE INTERNATIONAL AIRPORT 2 1 3 2 1 3 5 7 6 4 DOWNTOWN JACKSONVILLE 5 MILES 8 9 7 Major Industrial Projects Major Land Projects NOTE: Numbers correspond with charts on Page 3 and Page 4 5

WESTSIDE JAC KSO NVI LLE, FLO R I DA 14 8 12 9 13 10 11 11 12 DOWNTOWN JACKSONVILLE 4 MILES 10 Major Industrial Projects Major Land Projects N OT E : N u m b e r s co rre sp o nd with charts on Page 3 and Page 4 6

SOUTHSIDE JAC KSO NVI LLE, FLO R I DA DOWNTOWN JACKSONVILLE 13 14 15 16 17 18 Major Industrial Projects N OT E : N u m b e r s co rre sp o nd with chart on Page 4 7

ABOUT GRAHAM & COMPANY Founded in 1978, Graham & Company is a full-service commercial real estate firm based in Birmingham. With offices in Birmingham and Huntsville, Alabama and Jacksonville and Orlando, Florida, the company offers professional services including sales, leasing, property management, appraisal, consulting, investment and development. In response to client demand, Graham has systematically extended its range of services and geographic reach, now serving clients throughout Alabama and several surrounding states. AFFILIATIONS NAIOP National Association of Industrial & Office Properties SIOR Society of Industrial & Office Realtors CRE Counselors of Real Estate ICSC International Council of Shopping Centers IREM Institute of Real Estate Management CCIM Certified Commercial Investment Member BOMA Building Owners and Managers Association LEED Leadership in Energy and Environmental Design ULI Urban Land Institute MEASURE US BY OUR ACTIONS grahamcompany.com BIRMINGHAM HUNTSVILLE JACKSONVILLE GULF COAST 110 Office Park Drive Suite 200 Birmingham, AL 35223 TEL 205.871.7100 200 Westside Square Suite 800 Huntsville, AL 35801 TEL 256.382.9010 550 Water Street Suite 1225 Jacksonville, FL 32202 TEL 904.281.0003 120 Richard Jackson Boulevard Suite 210 Panama City Beach, FL 32407 TEL 850.563.1500 FAX 205.871.3331 FAX 256.382.9011 FAX 904.281.0849 FAX 850.563.1504 GRAHAM & COMPANY PERSONNEL JACKSONVILLE FOUNDING PRINCIPALS Steve Graham, MAI, CRE Mike Graham, CPM, SIOR MANAGING PARTNER Gardner Lee, CPM, SIOR MANAGING BROKER Peter Crolius, SIOR PROPERTY MANAGEMENT Ron Kirkland, RPA, FMA BUILDING ENGINEER Richard Abel