Cyclical and Structural Factors to Drive Industrial Market Growth in 2015

North American Research & Forecast Report INDUSTRIAL OUTLOOK Q4 2014 Cyclical and Structural Factors to Drive Industrial Market Growth in 2015 Andrea Cross National Office Research Manager USA Key Takeaways > > The North American vacancy rate decreased in Q4 2014 by 22 basis points (bps) to 6.8%. In the, vacancy fell 24 bps to 7.2%. The Canadian vacancy rate remained flat at 4.0% for the second straight quarter. > > Net absorption was robust at 70.7 million square feet (MSF) in Q4, an increase of 5.9 MSF over Q3. absorption totaled 67 MSF, the highest quarterly figure during the current cycle. > > The ongoing strength of the market has induced an increase in development. Construction volume accelerated in both the and Canada during the quarter, totaling 178.2 MSF, up from 155.9 MSF in Q3 2014. The absorption-new supply ratio decreased slightly to 1.6:1.0 from 1.7:1.0 in Q3 2014, though it is still above the 1.4:1.0 ratio posted in Q2 2014. The ratio is still high compared with the 2004-2007 expansion period, when the ratio was 1.3:1.0. Still, this metric is important to monitor as supply escalates going forward, particularly given the inevitable deceleration of absorption. > > Solid economic and e-commerce growth have helped inland distribution and intermodal markets move past the recovery phase and into the expansion part of the cycle. Atlanta, Chicago, Columbus and Houston joined Los Angeles, Oakland and Seattle on the list of markets with favorable supply/demand dynamics. > > A tentative five-year contract agreement was reached in late February between West Coast dockworkers and ship and port owners. However, even with the current agreement, clearing the backlog of imports and returning to the normal pace of trade flow is expected to take several more months. Longer-term, increased contingency planning on the part of retailers could continue to bolster tenant interest in Gulf and East Coast ports such as Houston, Savannah and Charleston. > > The strength of the industrial market has prompted robust investor activity. According to Real Capital Analytics, North American transaction volume involving deals of at least $10 million reached $12.8 billion in Q4 2014, an eight-quarter high. The average cap rate decreased to 7.1% in Q4 2014, the lowest since Q2 2008. The end of 2014 marked the second year of consistently healthy capital markets activity, climbing back toward pre-downturn levels. Market Indicators Relative to prior period VACANCY NET ABSORPTION CONSTRUCTION RENTAL RATE** * Projected, relative to prior period ** Warehouse rents Summary Statistics, Q4 2014 North America Office Market CANADA NORTH AMERICA Vacancy Rate 7.2% 4.0% 6.8% Change from Q3 2014 (Basis Points) Absorption (Million Square Feet) New Construction (Million Square Feet) Under Construction (Million Square Feet) ASKING RENTS (USD/CAD) PER SQUARE FOOT PER YEAR Average Warehouse/ Distribution Center Q4 2014 Q1 2015* CANADA Q4 2014 CANADA Q1 2015* -24-6 -22 67.0 3.6 70.7 42.7 2.8 45.4 158.4 19.8 178.2 $5.08 $8.13 N/A Change from Q3 2014 1.3% 0.2% N/A

Absorption Per Market (SF) q3 '14 - q4 '14 8,900,000 4,450,000 890,000-890,000-4,450,000 Sq. Ft. By Region 4.5 billion 2.25 billion 450 mil Occupied Sq. Ft. Vacant Sq. Ft. -8,900,000 Industrial Economic Indicators North American Industrial Vacancy, Inventory & Absorption Q4 2014 NA The North American industrial market experienced another year of expansion in 2014 alongside improvements in consumer confidence, hiring, homebuilding and e-commerce, providing momentum as 2015 began. The Institute for Supply Management (ISM) reported that the economy grew for the 68th straight month in January. The manufacturing sector increased for the 20th straight month, with 14 of 18 surveyed industries reporting growth. Additionally, rail and intermodal traffic continues to improve per the Association of American Railroads (AAR) Rail Time Indicators. Industrial demand and capital market conditions illustrate the strength of these drivers. Net absorption is still generously above new supply, but the margin is narrowing, which means that supply in select markets may be more difficult to absorb as the year goes on. However, despite its upward trajectory, new supply remains historically low, which should allow for continued market tightening. Industrial Economic Indicators A wide swath of industrial economic indicators posted strong results through the fourth quarter of 2014, boding well for real estate conditions this year. Real GDP growth for the fourth quarter came in at an annual rate of 2.2% (second estimate) with an upward revision to a 5.0% annual rate for 3Q 2014 growth. GDP growth was led by personal consumption expenditures. Consumption should continue to rise as wage expectations increase with accelerated hiring. Additionally, the household debt service ratio is near record lows, which is expected to allow for more consumer spending. The auto and housing industries, from which many industrial tenants are drawn, both are generating optimism for industrial demand. Light vehicle sales reached a seasonally adjusted annual rate (SAAR) of 16.6 million units in January, the 11th consecutive month in which the SAAR exceeded 16 million. Analysts expect monthly auto sales to average around a 17 million SAAR in 2015 for annual growth of roughly 3%. Housing starts remain significantly below long-term levels but reached a post-recession high of more than one million in 2014. We GDP Q4'14 2.2% (second estimate) Q3'14 5.0%, up from 4.6% in Q2 2014 ISM: RAIL TIME INDICATORS: AAR.ORG Total Railcar Traffic Intermodal Traffic Jan-15 PMI 53.5, down 1.6 pctg. pts. from Dec-14 + 3.4% YOY in Jan-15 + 0.9% YOY in Jan-15 Intermodal traffic in Jan-15 averaged over 251K containers per week; highest Jan avg. in history. expect starts activity to increase at a moderate rate again in 2015, driven by only modest interest rate increases and faster-paced hiring and wage growth. Alongside this improvement, enthusiasm should build among homebuyers and homebuilders alike, giving housing industry tenants (homebuilders, plumbing and HVAC suppliers, landscapers, home goods retailers, etc.) the confidence to take on more warehouse space. The ISM s Report on Business for January 2015 was largely positive for industrial real estate demand. The overall economy expanded for the 68th consecutive month and the manufacturing sector increased for the 20th consecutive month, but in both cases, expansion has been slowing. The PMI composite index was 53.5, still at expansion levels, but down from 55.1 in December. The port slowdown accounted for much of the decline with raw materials industries (paper, wood) reporting logistical snags that created a glut of backorders. Still, many manufacturers reported healthy business conditions, a positive sign for a potential upsurge in the index in the medium term now that uncertainty with respect to the West Coast ports has been removed. Finally, rail and intermodal traffic remains healthy according to the AAR s Rail Time Indicators. In 2014, total rail and intermodal traffic increased by 4.5%, reaching its highest level since 2007. January started the new year at a brisk pace. Intermodal traffic rose by 0.9% year-over-year, reaching the highest-ever weekly average for January. January carload traffic was up 5.6% year-over-year with 18 of 20 commodity groups increasing traffic. Traffic is benefiting from the record $27 billion spent on capital and maintenance by railroads in 2014 with $29 billion in additional spending projected for 2015. The increased operations efficiency should promote more traffic, leading to more warehouse space demand. 2 North American Research & Forecast Report Q4 2014 Industrial Market Outlook Colliers International

75.0% 62.5% 44.4% 42.9% 58.3% 65.2% 53.8% 8.3% 46.8% Vacancy Driven by the market, the North American vacancy rate decreased again in Q4. The vacancy rate fell by 24 bps to 7.2%, its lowest level in more than 10 years, while the Canadian vacancy rate remained at 4.0%. Since peaking at 11.2% in Q1 2010, the vacancy rate has declined by an average of 21 bps per quarter. Vacancy rates should continue to fall in the and Canada in 2015, but the rate of decline is likely to level off as the market tightens and new supply comes online. All regions recorded occupancy gains in Q4 2014, demonstrating the breadth of the expansion. As in Q3, the West posted the lowest vacancy rate overall at 5.5%, while the Northeast posted the highest at 9.0% due to the challenge of persistently high vacancy in Boston and Washington, D.C. Vacancy in the West and Northeast declined by 33 bps and 14 bps, respectively. The 33 bps vacancy decline in the West was the largest of all regions, led by major markets such as Denver, Oakland, Seattle and San Jose. The Midwest (26 bps) and South (21 bps) also showed significant vacancy declines. Vacancy increased in four of the 10 Canadian markets reporting Q4 data, but with the exception of Waterloo, all of those 10 markets have vacancy rates at or below 6.0%. Regina (2.1%), Edmonton (3.4%), Toronto (3.8%) and Winnipeg (3.8%) ranked among the top 10 North American markets with the lowest vacancy rates. Manufacturing At A Glance - January 2015 INDEX SERIES INDEX (JAN 2015) SERIES INDEX (DEC 2014) PERCENTAGE- POINT CHANGE From Inventories 51.0 16.7% 45.5 5.5 Growing 4.2% 16.7% 13.8% 11.7% 1 Contracting 28.6% Customers' 42.5 44.5 44.4% -2.0 52.5% Too Low Faster 19.0% 41.5% 37.7% 2 Inventories Prices 35.0 58.3% 38.5-3.5 Decreasing Faster 3 75.0% Backlog of 38.1% From 46.0 52.5-6.5 Contracting Orders 44.4% 43.5% 38.5% 44.2% 1 Growing 25.0% 14.3% 8.3% From Exports 49.5 52.0-2.5 Contracting 6.2% 6.5% 1 Growing Provide a three month forecast for rents (relative to current quarter): 28.6% DIRECTION RATE OF CHANGE 75.0% 62.5% 44.4% 42.9% 58.3% 65.2% 53.8% 8.3% TREND* (MONTHS) PMI 53.5 55.1-1.6 Growing Slower 25 New Orders 52.9 57.8-4.9 Growing Slower 26 Production 56.5 57.7-1.2 Growing Slower 29 Employment 54.1 56.0-1.9 Growing Slower 20 Supplier Deliveries 52.9 58.6-5.7 Slowing Slower 20 Imports 55.5 55.0 0.5 Growing Faster 24 OVERALL ECONOMY Growing Slower 68 Manufacturing Sector Growing Slower 20 *Number of months moving in current direction Source: ISM Up Same Down N/A 100% 4.3% 16.7% 13.8% 16.7% 28.6% 55.6% 30.4% 25.0% 32.3% 11.7% 2.6% 39.0% 46.8% Industrial Market Q4 2012 to Q4 2014 80.0 Northeast Note: Latest data as of Q4 2014 Source: Colliers International Atlanta, GA Chicago, IL Los Angeles Inland Empire, CA How would you characterize current Indianapolis, IN industrial rents No in Clear your Direction market? Los Angeles, CA 3.9% Houston, TX North America 11.7% 22.1% Dallas-Ft. Worth, TX 1.3% Canada 8.3% 4.6% 41.7% 53.2% 7.8% 33.3% Currently U/C 16.7% Q4-14 Absorp Bil. 13.8% 18.5% 56.9% $80 6.2% $70 0% market? 20% 40% 60% 80% $60 100% N/A Bottoming Increasing $50 Declining No Clear Direction Peaking $40 100% South 11.7% 8.3% 13.8% 4.6% Midwest 22.1% 41.7% 18.5% West *** - Q3-14 data displayed. Provide a three month forecast for vacancy levels (relative to current quarter): Down Same Up $30 53.2% $20 Canada 60.0 9.1 8.8 8.7 8.3 8.1 7.9 7.7 7.4 7.1 40.0 20.0 0.0 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Absorption MSF Completions MSF Vacancy % Savannah, GA 8.3% 4.3% 22.2% 15.4% 28.6% 33.3% 11.1% 14.3% 41.7% 30.4% 24.6% 66.7% 65.2% 57.1% 60.0% 50.0% 7.8% $10 33.3% $0 16.7% 2007 2008 2009 201 12-Month Trailing Volume 56.9% (left-axis) 6.2% 41.7% N.A. 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Vacancy % Millions 0.0 5.0 10.0 15.0 3 North American Research & Forecast Report Q4 2014 Industrial Market Outlook Colliers International Northeast South Midwest West Canada N.A. ast uth est est.s. 25.0% ada

Vacancy declined in 60 of 72 markets tracked by Colliers that reported both Q3 2014 and Q4 2014 data. In the markets where vacancy rose, the increases were marginal and the affected markets were small. The one exception was Dallas-Fort Worth, where vacancy rose 68 bps due to a large volume of new bulk supply coupled with slowing demand for bulk product. As noted in Colliers recent reports, Gulf and East Coast ports may be gaining appeal due to the recent lengthy, acrimonious labor negotiations between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association, which negotiates labor agreements with the ILWU on behalf of the West Coast port operators and shipping lines. Though a fiveyear contract has been agreed upon and the actual shutdown time was brief, the negotiations and slowdown had a significant negative impact on the supply chain on both sides of the ocean, causing lost productivity and great uncertainty with respect to near-term business operations. Processing delays over the past several months have caused losses throughout the supply chain, impeding both manufacturing production and imported retail goods distribution in the Agricultural exports spoiled while waiting for transport in Asia, seasonal retail imports were made obsolete, and manufacturers were forced to fly in component parts at great expense to keep operations running. As a result of these disruptions, Gulf and East Coast ports in right-to-work states with access to Class 1 railroads, such as Charleston, SC and Savannah, 16.7% 4.2% 16.7% 13.8% 11.7% GA, have attracted consistent 28.6% increased demand from tenants in recent quarters. 44.4% 52.5% 19.0% 41.5% 37.7% 58.3% However, it is important to note that long term, 75.0% the West Coast ports are likely to outperform 38.1% with vacancies consistently below the 44.4% national average. Despite the standoff, 43.5% 38.5% all four major West 44.2% Coast 25.0% markets (Los Angeles, Inland 14.3% Empire, Seattle, 8.3% and 6.2% Oakland) 6.5% posted vacancies below 5.0% in Q4 2014 with quarter-over-quarter declines in the 40-90 bps range. The one exception is Los Angeles, where vacancy has been relatively unchanged in the low-to-mid 2% range. The West Coast port infrastructure is well-established, particularly Provide in a Southern three month California forecast with for rents the Ports of Los Angeles and Long (relative Beach to current and the quarter): Alameda Corridor, and shipments from Asia to the East Coast are Up and Same will likely Down remain N/A significantly more expensive, 100% both by sea and especially 4.3% air. 16.7% 13.8% 16.7% 11.7% 28.6% 55.6% 30.4% 2.6% 25.0% 32.3% 39.0% 28.6% 75.0% 62.5% 44.4% 42.9% 58.3% 65.2% 53.8% 8.3% 46.8% Excluding renewals, of the leases signed this quarter, did most tenants Expand, Hold Steady or Contract? most tenants Expand, Hold Steady or Contract? 100% 16.7% 58.3% 25.0% Midwest Contract Holding Steady Expand N/A 44.4% 44.4% 11.1% Northeast 28.6% 19.0% 52.5% 38.1% 4.2% 16.7% 13.8% 11.7% 43.5% 75.0% 14.3% 8.3% 6.2% 6.5% South West Canada Provide a three month forecast for rents (relative to current quarter): 41.5% 37.7% 38.5% 44.2% Up Same Down N/A How would you characterize current industrial rents in your 100% market? 4.3% 16.7% 13.8% 16.7% 11.7% 28.6% 55.6% 30.4% 2.6% N/A Bottoming Increasing 25.0% 32.3% Declining No Clear Direction Peaking 39.0% 28.6% 3.9% 75.0% North 62.5% 44.4% 42.9% 58.3% 65.2% America 11.7% 22.1% 53.2% 53.8% 7.8% 46.8% 1.3% 8.3% Canada 8.3% 100% Northeast South 4.6% 41.7% Midwest West 33.3% Canada N.A. 16.7% Provide a three month forecast for vacancy (relative to current quarter): N.A. 13.8% 18.5% 56.9% 6.2% 0% 20% 40% 60% 80% 100% Provide a three month forecast for vacancy levels (relative to current quarter): Down Same Up 8.3% 4.3% 22.2% 15.4% 28.6% 33.3% 11.1% 14.3% 41.7% 30.4% 24.6% 66.7% 65.2% 57.1% 60.0% 50.0% 41.7% 80.0 Northeast South Midwest West Canada 60.0 9.1 8.8 8.7 8.3 8.1 7.9 7.7 7.4 7.1 40.0 20.0 N.A. 14.0 12.0 10.0 8.0 6.0 4.0 2.0 Vacancy % Northeast South % of reporting markets Source: Colliers International 4 0.0 North American Research & Forecast Report 0.0Q4 2014 Industrial Market Outlook Colliers International Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2014 Midwest West 25.0% Canada

Absorption North American absorption increased by 6 MSF quarter-overquarter to nearly 71 MSF in Q4 2014 with a positive contribution from both the and Canada. The Q4 2014 total of 67 MSF was the highest quarterly total during the current cycle. Positive absorption should continue in both countries in Q1 2015. A main theme over the past several quarters has been the growing outperformance of inland distribution markets as well as those with rail access to ports as e-commerce increases in importance. Tenants in these markets can move imports quickly and efficiently through the supply chain to major population centers, meeting consumer demand for ever-shorter delivery times. Reflecting this trend, the top markets for Q4 2014 absorption were Atlanta (8.9 MSF), Chicago (6.1 MSF), L.A.-Inland Empire (4.6 MSF) and Columbus (3.0 MSF). The list was similar for year-to-date absorption, with Columbus replaced by Dallas-Fort Worth (12.7 MSF) and Houston (10.2 MSF). However, absorption in both Dallas-Fort Worth and Houston slowed down in the fourth quarter, likely due to the effects of persistent low oil prices, especially in energy-dependent Houston. As long as oil prices remain low, absorption growth is likely to moderate in Dallas-Fort Worth and Houston, as well as in the Canadian energy industry markets of Edmonton, Calgary, Regina and Saskatchewan. Detroit had a stellar year in 2014 with 8.6 MSF absorbed thanks to strong auto manufacturing and sales activity, as well as its new right-to-work status, which the state gained in 2012. Along with Columbus, smaller Southeastern and Midwestern markets, such as Louisville, Cincinnati and Memphis, should see benefits from e-commercerelated inland throughput traffic. Another notable trend observed in recent quarters was an increase in leasing activity in the 50,000 SF to 250,000 SF range. Improvements in this segment stem from the recovering housing market as well as increased activity among small businesses. We expect both of these sectors to continue to strengthen further going forward, driving demand for industrial projects in this size range. Absorption, Under Construction (SF) Select Markets Q4 2014 Atlanta, GA Chicago, IL Los Angeles Inland Empire, CA Indianapolis, IN Los Angeles, CA Houston, TX Dallas-Ft. Worth, TX Savannah, GA Absorption, Under Construction (SF) Select Canada Markets Q4 2014 Calgary, AB Montréal, QC Vancouver, BC Waterloo Region, ON Edmonton, AB Ottawa, ON*** Regina, SK Toronto, ON Victoria, BC Halifax, NS** Saskatoon, SK Winnipeg, MB ** - Q2 data displayed. *** - Q3 data displayed. Source: Colliers International Millions 0.0 5.0 10.0 15.0 20.0 Currently U/C Bil. Q4-14 Absorp Millions -1.0 0.0 1.0 2.0 3.0 4.0 Currently U/C Q4-14 Absorp 5.0 8.2 Industrial Real Estate Indicators Top 5 MSAs Q4 Net Absorption GDP: Inventory Vacancy Net Absorption New Supply New Supply to Inventory Net Absorption to New Supply Ratio +2.2% in Q4, BEA second estimate 14.4 BSF 7.2% Nationwide (down 24 bps) 67.0 MSF in Q4 42.7 MSF in Q4, up 18.6% over Q3 1.1% annualized, +20 bps over Q3 Note: Up to 2% is considered healthy 1.6:1 Q4 2014 vs. 1.7:1 Q3 #1 Atlanta 8.9 MSF #2 Los Angeles - Inland Empire 6.1 MSF #3 Los Angeles-Inland Empire 4.6 MSF #4 Columbus 3.0 MSF Top 10 Markets account for 52% of 67 MSF net absorption in Q4. #5 Detroit 2.4 MSF Source: Colliers International Source: Colliers International 5 North American Research & Forecast Report Q4 2014 Industrial Market Outlook Colliers International

Construction Activity Construction activity is firmly on the upswing as improving fundamentals stimulate development plans. In the, more than 158 MSF are now under way. This is the highest construction volume in more than 10 years, up 50% from one year ago and 180% from Q4 2012. The current construction surge is justified since annual new supply following the recession was marginal at an average of less than 50 MSF between 2010 and 2013. Also, new stock is needed to meet increased space demand as well as replace obsolete properties, particularly near population centers as retailers and e-commerce firms seek to meet growing consumer demand for same-day and next-day delivery. Annualized new supply as a percentage of existing inventory stood at 1.1% in both the and Canada. However, the ratio crept up by 20 bps quarter-overquarter in the and will move up further in coming quarters, raising the possibility of oversupply in certain property subtypes and locations. For the most part, though, industrial development is concentrated in major port or distribution markets and in line with tenant demand. The list of top markets for construction activity by square footage in Q4 was similar to the top absorption markets: Dallas- Fort Worth (17.4 MSF), Atlanta (17.1 MSF), L.A.-Inland Empire (15.1 MSF), Chicago (12.6 MSF) and Toronto (8.2 MSF). The top markets for construction activity as a percentage of inventory were: Bakersfield (9.3%), L.A.-Inland Empire (3.4%), Columbus (3.0%), Minneapolis (2.8%) and Atlanta (2.8%). All of these markets have vacancy rates below the overall rate with the exception of Atlanta, which was severely hit during the downturn but is now improving rapidly. Though supply is still at historically low levels, the absorption-tonew-supply ratio in the has fallen sharply, from 2.2:1.0 in Q4 2013 and 2.5:1.0 in 2013, to 1.6:1.0 in Q4 2014 and 1.7:1.0 for 2014. By region, absorption relative to new supply was highest in the Midwest (1.8:1.0) and lowest in the Northeast (1.3:1.0) in 2014. In Canada, the Q4 2014 absorption-to-new-supply ratio was 1.3:1.0 and the year-to-date 2014 ratio was 1.2:1.0. Transaction Activity Despite widespread expectations to the contrary, 10-year Treasury yields have remained at or near historic lows over the past two years, even after quantitative easing was concluded in October 2014. Recent weakened growth conditions globally have led to worldwide deflationary pressure as well as a flood of capital seeking safe haven in Treasuries, both factors that have kept yields hovering around 2%. Current consensus holds that Fed rate hikes will not occur before June and should be minimal when they do occur. Going forward, a more material rise in interest rates will likely accompany further economic improvement. Along with favorable capital conditions, healthy real estate fundamentals are drawing investors to industrial real estate. After dipping slightly in Q3 due to product mix, aggregate transaction volume rebounded in Q4 2014 as expected. According to Real Capital Analytics (RCA), 12-month trailing transaction volume involving deals of at least $2.5 million totaled more than $54 billion in Q4 2014, a 13.2% increase year-over-year. Additionally, both quarterly transaction volume and the average cap rate returned to levels not seen since Q3 2007. Transaction volume exceeded $16 billion, and the average cap rate fell 20 bps to 7.0%. However, unlike in 2007, these are not signs of an overheating market. The spread between the average cap rate and 10-year Treasury yield increased slightly to 478 basis points, compared with a spread of just 179 basis points in Q2 2007 at the peak of the last cycle. Accelerating NOI growth due to low vacancy and rent growth traction should help to maintain an attractive spread in the near term, allowing for continued positive valuation momentum. As in Q3 2014, the West accounted for the largest amount of transaction volume in Q4. The West s $5.4 billion in sales accounted for more than 30% of all industrial transactions during the quarter. Los Angeles had the largest transaction volume among metro areas at $1.5 billion for the quarter. The next highestvolume was $1.1 billion in the greater New York City area (Long Island, Northern New Jersey, New York City, Stamford, and Westchester). Chicago ($1.1 billion), Atlanta ($834 million) and Dallas ($786 million) all had standout quarters, reflecting the strength of absorption in these markets. Industrial Transaction Volume Q4 2014 - NA Bil. $80 $70 $60 $50 $40 $30 $20 $10 $0 2007 2008 2009 2010 2011 2012 2013 2014 12-Month Trailing Volume (left-axis) Note: Latest data as of Q4 2014; all data are 12-month trailing Sources: Real Capital Analytics, Colliers International Sources: Real Capital Analytics, Colliers International Year-Over-Year % Change (right-axis) The Top Five MSAs in Transaction Volume Q4 #1 Los Angeles $1.5 bil. #2 Chicago $1.1 bil. #3 San Jose $873.6 mil. #4 Atlanta $834.3 mil. #5 Dallas $785.7 mil. 200% 150% 100% 50% 0% -50% -100% 6 North American Research & Forecast Report Q4 2014 Industrial Market Outlook Colliers International

Conclusion and Outlook: The industrial sector should register another year of strong performance in 2015, boosted by encouraging outlooks for its demand drivers. Interest rates and inflation remain benign in both the and Canada, and the dollar has been strengthened by soft global economic conditions. While economic conditions in Canada are more muted, export-oriented sectors should see a boost from strength in the Additionally, nonfarm payrolls are finally past their prior peak, and growth is accelerating with a stabilizing labor force participation rate. IHS Global Insight projects job growth of 2.2% for 2015, the fastest rate since 2000, as state and local government hiring finally recovers from austerity cutbacks. The tightening of the labor market set against near-record corporate profits should allow for meaningful and broad-based wage growth, which has already begun. The recent wage increase announced by Walmart augurs well for this trend. Higher wages, low gas costs and the strong dollar should set the stage for a surge in both consumption and imports. IHS projects that consumption growth will accelerate from 2.4% in 2014 to 3.6% in 2015, while import growth will jump from 4.0% to 6.1%. Under these conditions, demand for industrial space should, by and large, be sufficient to meet the growing volume of new supply, although the absorptionto-new-supply ratio is likely to continue to fall this year, particularly for secondary markets. The growing importance of e-commerce should also provide a structural augmentation to cyclical demand forces, especially in markets with port and rail access to major population centers. North American Industrial Overview Q4 2014 NORTH AMERICA CANADA UNITED STATES WEST MIDWEST SOUTH NORTHEAST # of Markets 77 12 65 23 12 21 9 Inventory (Millions SF) 16,121.4 1,737.0 14,384.4 3,854.2 4,036.1 4,289.5 2,204.5 % of N.A. Inventory 100.0% 10.8% 89.2% 23.9% 25.0% 26.6% 13.7% New Supply (Millions SF) 45.4 2.8 42.7 9.2 11.5 15.1 6.8 % of N.A. New Supply 100.0% 6.1% 93.9% 20.3% 25.3% 33.3% 14.9% Vacancy (%) 6.8% 4.0% 7.2% 5.5% 6.9% 8.0% 9.0% Absorption (Millions SF) 70.7 3.6 67.0 18.2 19.4 22.2 7.2 % of N.A. Absorption 100.0% 5.2% 94.8% 25.8% 27.5% 31.4% 10.2% 7 North American Research & Forecast Report Q4 2014 Industrial Market Outlook Colliers International

United States Industrial Survey Inventory, New Supply, Under Construction EXISTING INVENTORY (SF) NEW SUPPLY Q4 2014 (SF) YTD NEW SUPPLY 2014 (SF) UNDER CONSTRUCTION (SF) NORTHEAST Baltimore, MD 227,412,223 383,528 3,018,198 0 Boston, MA*** 151,143,203 0 250,000 936,000 Hartford, CT 95,613,351 0 0 0 Long Island, NY 156,055,780 0 308,000 52,000 New Jersey - Central*** 345,598,813 2,279,015 3,972,122 4,427,027 New Jersey - Northern*** 362,981,273 1,845,564 1,845,564 180,000 Philadelphia, PA 418,722,852 1,845,647 4,739,902 6,832,587 Pittsburgh, PA 174,711,192 39,300 496,036 703,122 Washington, DC 272,264,900 381,850 1,538,590 2,818,053 Northeast Total 2,204,503,587 6,774,904 16,168,412 15,948,789 SOUTH Atlanta, GA 620,204,352 2,278,762 4,440,239 17,100,470 Birmingham, AL 109,682,848 0 0 70,000 Charleston, SC 33,197,465 0 0 316,000 Charlotte, NC 331,615,969 1,458,584 2,946,193 1,503,563 Columbia, SC 39,432,227 38,500 408,000 130,400 Dallas-Ft. Worth, TX 744,817,195 6,946,792 15,778,094 17,360,899 Ft. Lauderdale-Broward, FL 110,536,807 229,632 793,946 169,600 Greenville/Spartanburg, SC 184,810,481 557,967 2,021,901 1,323,000 Houston, TX 496,050,222 1,389,405 8,650,474 7,963,627 Jacksonville, FL 122,829,104 0 65,443 367,546 Little Rock, AR 45,350,513 0 18,376 0 Louisville, KY 174,581,874 200,000 1,009,430 567,662 Memphis, TN 223,922,979 1,245,800 2,622,032 2,299,040 Miami, FL 212,385,362 216,150 1,749,683 955,707 Nashville, TN 187,906,401 0 366,488 0 Orlando, FL 132,688,415 345,804 686,951 1,906,502 Raleigh, NC 111,353,138 0 309,305 0 Richmond, VA 111,709,627 0 0 1,779,652 Savannah, GA 45,312,300 0 10,000 1,013,400 Tampa Bay, FL 200,780,329 230,600 2,792,531 166,000 West Palm Beach, FL 50,379,239 0 240,400 745,634 South Total 4,289,546,847 15,137,996 44,909,486 55,738,702 *** Q3-14 data displayed 8 North American Research & Forecast Report Q4 2014 Industrial Market Outlook Colliers International

United States Industrial Survey Inventory, New Supply, Under Construction (continued) EXISTING INVENTORY (SF) NEW SUPPLY Q4 2014 (SF) YTD NEW SUPPLY 2014 (SF) UNDER CONSTRUCTION (SF) MIDWEST Chicago, IL 1,323,219,994 4,512,001 11,515,778 12,608,925 Cincinnati, OH 245,973,825 0 821,448 2,300,000 Cleveland, OH 282,881,897 0 107,001 169,600 Columbus, OH 220,189,715 1,895,715 4,452,715 6,675,000 Detroit, MI 524,365,442 233,892 732,507 1,163,030 Grand Rapids, MI 113,037,888 0 45,750 172,280 Indianapolis, IN 283,754,448 1,127,363 6,830,230 5,392,321 Kansas City, MO-KS 236,212,750 1,207,760 3,871,940 3,428,050 Milwaukee, WI 225,210,168 1,161,194 2,460,200 1,120,000 Minneapolis/St. Paul, MN 243,755,400 835,412 2,515,536 6,761,136 Omaha, NE 68,387,888 439,680 512,480 274,970 St. Louis, MO 269,135,213 81,844 1,008,117 820,939 Midwest Total 4,036,124,628 11,494,861 34,873,702 40,886,251 WEST Albuquerque, NM 37,227,667 0 45,750 0 Bakersfield, CA 34,214,111 71,334 541,735 3,169,600 Boise, ID 46,373,012 131,305 157,305 80,480 Denver, CO 217,216,439 225,733 2,454,846 1,797,566 Fairfield, CA 47,354,898 473,136 956,817 1,287,620 Fresno, CA 56,481,450 0 0 200,000 Honolulu, HI 39,230,336 0 0 0 Las Vegas, NV 118,158,211 444,520 1,095,400 862,161 Los Angeles - Inland Empire, CA 440,879,600 3,522,500 20,707,351 15,052,000 Los Angeles, CA 891,558,000 1,210,500 1,448,000 2,745,500 Oakland, CA 142,563,820 0 949,365 633,584 Orange County, CA 194,074,500 626,000 952,885 266,500 Phoenix, AZ 284,128,488 1,829,221 7,062,934 3,762,684 Pleasanton/Tri-Valley, CA 17,508,130 0 0 0 Portland, OR 192,516,359 599,700 1,170,301 5,232,424 Reno, NV 83,796,751 0 1,301,810 1,227,000 Sacramento, CA 162,043,481 0 298,014 1,313,814 San Diego, CA 187,593,253 0 382,299 112,824 San Francisco Peninsula, CA 40,852,516 0 8,500 0 San Jose - Silicon Valley, CA 248,937,322 111,100 386,100 912,009 Seattle/Puget Sound, WA 256,357,731 0 2,014,972 4,961,281 Stockton/San Joaquin County, CA 97,515,885 0 1,900,060 2,167,055 Walnut Creek, CA 17,639,115 0 0 0 West Total 3,854,221,075 9,245,049 43,834,444 45,784,102 TOTALS 14,384,396,137 42,652,810 139,786,044 158,357,844 9 North American Research & Forecast Report Q4 2014 Industrial Market Outlook Colliers International

United States Industrial Survey Absorption, Vacancy ABSORPTION Q4 2014 (SF) YTD ABSORPTION SEP 30, 2014 NORTHEAST Baltimore, MD 1,350,436 5,166,492 9.4% 8.9% Boston, MA*** 78,817-526,454 19.2% 19.1% Hartford, CT 140,692 828,277 8.5% 8.4% Long Island, NY -22,838 228,586 5.0% 5.0% New Jersey - Central*** 2,524,673 4,977,373 8.4% 8.3% New Jersey - Northern*** 113,992-117,822 8.3% 8.2% Philadelphia, PA 1,833,377 5,356,542 8.6% 8.6% Pittsburgh, PA -480,686 538,240 7.2% 7.5% Washington, DC 1,638,981 5,214,551 10.2% 9.7% Northeast Total 7,177,444 21,665,785 9.1% 9.0% SOUTH Atlanta, GA 8,889,058 20,302,864 10.2% 9.1% Birmingham, AL -255,650-1,326,794 10.0% 10.3% Charleston, SC 397,408 239,568 8.7% 7.5% Charlotte, NC 1,375,636 6,316,128 10.6% 10.6% Columbia, SC 173,600 966,727 6.3% 6.0% Dallas-Ft. Worth, TX 1,365,984 12,696,001 6.9% 7.6% Ft. Lauderdale-Broward, FL 764,934 2,096,443 8.1% 7.4% Greenville/Spartanburg, SC 1,548,152 2,906,564 7.7% 7.1% Houston, TX 1,367,297 10,243,774 4.9% 4.8% Jacksonville, FL 960,950 1,781,250 8.6% 7.8% Little Rock, AR 48,638 78,757 11.7% 11.6% Louisville, KY 481,683 1,315,557 6.9% 6.8% Memphis, TN 1,999,360 1,833,708 12.7% 12.2% Miami, FL 544,308 2,262,556 6.1% 5.9% Nashville, TN 614,418 2,607,602 7.7% 7.3% Orlando, FL 536,949 1,607,272 9.1% 8.9% Raleigh, NC 171,905 1,139,351 8.6% 8.4% Richmond, VA 322,814 1,740,545 8.1% 7.8% Savannah, GA 117,150 1,630,440 5.7% 5.5% Tampa Bay, FL 683,859 5,211,021 8.9% 8.6% West Palm Beach, FL 69,346 729,715 6.0% 5.9% South Total 22,177,799 76,379,049 8.2% 8.0% *** Q3-14 data displayed 10 North American Research & Forecast Report Q4 2014 Industrial Market Outlook Colliers International

United States Industrial Survey Absorption, Vacancy (continued) ABSORPTION Q4 2014 (SF) YTD ABSORPTION SEP 30, 2014 MIDWEST Chicago, IL 6,141,906 18,301,811 8.0% 7.7% Cincinnati, OH 989,373 4,839,331 6.1% 5.7% Cleveland, OH 155,507 1,093,997 6.6% 6.5% Columbus, OH 2,965,165 5,461,838 6.0% 5.4% Detroit, MI 2,383,956 8,597,395 8.3% 7.9% Grand Rapids, MI 599,179 1,459,864 6.5% 5.9% Indianapolis, IN 1,976,271 6,967,661 6.8% 6.5% Kansas City, MO-KS 936,140 3,168,908 6.2% 6.3% Milwaukee, WI 1,439,457 3,893,717 5.8% 5.5% Minneapolis/St. Paul, MN 1,064,324 3,295,455 7.2% 7.1% Omaha, NE 454,929 1,474,452 3.0% 3.0% St. Louis, MO 314,374 4,828,182 7.1% 7.0% Midwest Total 19,420,581 63,382,611 7.2% 6.9% WEST Albuquerque, NM 103,561 964,246 7.1% 6.9% Bakersfield, CA 599,946 844,380 3.8% 2.2% Boise, ID 382,442 1,593,957 4.2% 3.7% Denver, CO 1,112,359 4,936,436 4.8% 4.4% Fairfield, CA 851,401 1,536,997 6.8% 5.8% Fresno, CA -66,410 391,769 7.7% 7.8% Honolulu, HI 39,908 262,706 2.2% 2.1% Las Vegas, NV 881,201 3,817,642 9.5% 9.1% Los Angeles - Inland Empire, CA 4,632,000 14,551,800 4.9% 4.5% Los Angeles, CA 1,717,800 6,648,600 2.4% 2.3% Oakland, CA 1,273,412 4,251,025 4.8% 3.9% Orange County, CA 248,600 870,400 3.6% 3.4% Phoenix, AZ 529,251 7,410,170 12.2% 12.3% Pleasanton/Tri-Valley, CA 57,826 198,299 6.7% 6.4% Portland, OR 885,934 2,336,726 5.7% 5.6% Reno, NV 793,234 2,326,610 8.3% 8.1% Sacramento, CA 419,080 2,841,770 11.2% 11.0% San Diego, CA 1,216,130 3,259,088 7.6% 6.9% San Francisco Peninsula, CA 119,475 886,559 3.3% 3.0% San Jose - Silicon Valley, CA 1,106,844 1,974,384 8.1% 7.3% Seattle/Puget Sound, WA 653,338 3,782,836 5.5% 4.8% Stockton/San Joaquin County, CA 584,993 4,852,042 8.9% 8.3% Walnut Creek, CA 102,687 142,822 7.5% 6.9% West Total 18,245,012 70,681,264 5.8% 5.5% TOTALS 67,020,836 232,108,709 7.4% 7.2% 11 North American Research & Forecast Report Q4 2014 Industrial Market Outlook Colliers International

United States Industrial Survey 3-Month Forecasts, Sales Price, Cap Rates VACANCY FORECAST (3 MONTHS)** RENT FORECAST (3 MONTHS)** ABSORPTION FORECAST (3 MONTHS)** SALES PRICE (USD/PSF) CAP RATE NORTHEAST Baltimore, MD Down Same Positive $72.91 6.6% Boston, MA*** Up Same Negative $89.00 Hartford, CT Down Same Positive $38.00 8.5% Long Island, NY Up Same Positive $91.00 8.2% New Jersey - Central*** Down Up Positive $43.06 7.7% New Jersey - Northern*** Same Up Positive $93.45 8.7% Philadelphia, PA Down Up Positive $65.50 7.0% Pittsburgh, PA Down Up Positive $55.00 7.5% Washington, DC Down Same Positive $106.83 5.6% Northeast Average* $72.75 7.5% SOUTH Atlanta, GA Down Up Positive $48.08 7.6% Birmingham, AL Same Same Close to zero Charleston, SC Down Up Positive Charlotte, NC Down N/A Positive Columbia, SC Down Up Positive Dallas-Ft. Worth, TX Up Same Positive $48.00 7.1% Ft. Lauderdale-Broward, FL Up N/A Positive Greenville/Spartanburg, SC Down Up Positive Houston, TX Same Same Positive $49.00 7.2% Jacksonville, FL Down Same Positive $39.00 8.2% Little Rock, AR Same Same Close to zero $65.45 9.0% Louisville, KY Up N/A Positive Memphis, TN Down Up Positive $35.00 7.5% Miami, FL Up N/A Positive Nashville, TN Down Up Close to zero $39.00 8.2% Orlando, FL Down Up Positive $56.00 7.0% Raleigh, NC Up N/A Positive Richmond, VA Down Up Positive $60.00 Savannah, GA Down Up Positive $36.00 7.5% Tampa Bay, FL Down Same Positive $33.00 9.0% West Palm Beach, FL Up N/A Positive South Average* $46.23 7.8% * Straight averages used ** Forecasts for Warehouse space *** Q3-14 data displayed 12 North American Research & Forecast Report Q4 2014 Industrial Market Outlook Colliers International

United States Industrial Survey 3-Month Forecasts, Sales Price, Cap Rates (continued) VACANCY FORECAST (3 MONTHS)** RENT FORECAST (3 MONTHS)** ABSORPTION FORECAST (3 MONTHS)** SALES PRICE (USD/PSF) CAP RATE MIDWEST Chicago, IL Down Up Positive $59.00 5.6% Cincinnati, OH Same Same Positive $35.00 8.5% Cleveland, OH Down N/A Positive Columbus, OH Down Up Positive $33.00 Detroit, MI Down Up Positive $33.24 10.6% Grand Rapids, MI Same Up Close to zero Indianapolis, IN Up Same Positive $56.00 6.7% Kansas City, MO-KS Same Up Positive Milwaukee, WI Same Same Positive $50.00 8.3% Minneapolis/St. Paul, MN Down Up Positive $55.00 7.0% Omaha, NE Same Up Positive St. Louis, MO Down N/A Positive Midwest Average* $45.89 7.8% WEST Albuquerque, NM Same Same Positive $86.50 7.7% Bakersfield, CA Same Same Positive $40.00 10.0% Boise, ID Same Same Close to zero Denver, CO Same Up Positive $66.32 6.3% Fairfield, CA Down Up Positive Fresno, CA Same Same Close to zero $37.00 8.8% Honolulu, HI Down Same Positive $145.00 Las Vegas, NV Down Up Positive $79.84 Los Angeles - Inland Empire, CA Down Up Positive $83.00 6.5% Los Angeles, CA Same Up Positive $99.00 6.3% Oakland, CA Down Up Positive $125.00 5.0% Orange County, CA Same Up Close to zero $122.00 6.0% Phoenix, AZ Down Up Positive $68.00 7.3% Pleasanton/Tri-Valley, CA Down Up Close to zero $77.24 6.2% Portland, OR Down Same Positive $91.08 7.0% Reno, NV Up N/A Positive Sacramento, CA Down Same Positive $51.00 7.7% San Diego, CA Down Up Positive $97.46 6.3% San Francisco Peninsula, CA Down Up Positive $200.00 6.0% San Jose - Silicon Valley, CA Down Up Positive $197.00 6.1% Seattle/Puget Sound, WA Down Up Positive $104.12 6.5% Stockton/San Joaquin County, CA Down Up Positive Walnut Creek, CA Down Up Positive West Average* $98.31 6.9% AVERAGE* $72.31 7.4% * Straight averages used ** Forecasts for Warehouse space 13 North American Research & Forecast Report Q4 2014 Industrial Market Outlook Colliers International

United States Industrial Survey Average Asking Rents As Of Dec 2014 WAREHOUSE / DISTRIBUTION SPACE (USD/SF/YR) BULK SPACE (USD/SF/YR) FLEX SERVICE SPACE (USD/SF/YR) TECH / R&D SPACE (USD/SF/YR) NORTHEAST Baltimore, MD $4.52 $4.52 $10.84 Boston, MA*** $6.10 $5.40 $6.58 $12.11 Hartford, CT $3.91 $5.88 $7.83 $6.50 Long Island, NY $8.99 $8.99 $16.75 New Jersey - Central*** $5.07 $4.74 $13.56 New Jersey - Northern*** $6.18 $5.71 $9.84 Philadelphia, PA $4.25 $4.18 $7.50 $11.25 Pittsburgh, PA $4.69 $4.67 $12.26 $12.26 Washington, DC $7.08 $5.76 $11.97 $13.54 Northeast Average* $5.64 $5.54 $10.79 $11.13 SOUTH Atlanta, GA $3.37 $3.04 $7.25 $9.55 Birmingham, AL $3.70 $3.21 $7.85 Charleston, SC $4.16 $4.58 $9.85 $16.25 Charlotte, NC $3.46 $3.48 $8.35 Columbia, SC $3.46 $3.40 $8.31 Dallas-Ft. Worth, TX $3.45 $2.90 $7.45 $8.90 Ft. Lauderdale-Broward, FL $6.81 $6.36 $10.75 Greenville/Spartanburg, SC $3.23 $3.44 $7.01 Houston, TX $5.86 $4.56 $10.61 $11.31 Jacksonville, FL $3.70 $3.91 $8.98 Little Rock, AR $3.16 $3.08 $8.06 Louisville, KY $3.57 $3.66 $6.34 Memphis, TN $2.54 $2.72 $5.07 $9.75 Miami, FL $7.30 $7.08 $12.80 $12.87 Nashville, TN $4.01 $3.11 $7.61 $7.70 Orlando, FL $4.68 $4.59 $9.09 $9.05 Raleigh, NC $4.17 $4.88 $10.39 Richmond, VA $3.75 $3.81 $7.73 $9.44 Savannah, GA $3.95 $3.75 $7.00 $10.00 Tampa Bay, FL $4.28 $4.20 $7.62 $6.15 West Palm Beach, FL $7.49 $6.98 $11.95 South Average* $4.29 $4.13 $8.57 $10.09 * Straight averages used *** Q3-14 data displayed 14 North American Research & Forecast Report Q4 2014 Industrial Market Outlook Colliers International

United States Industrial Survey Average Asking Rents As Of Dec 2014 (continued) WAREHOUSE / DISTRIBUTION SPACE (USD/SF/YR) BULK SPACE (USD/SF/YR) FLEX SERVICE SPACE (USD/SF/YR) TECH / R&D SPACE (USD/SF/YR) MIDWEST Chicago, IL $4.58 $3.54 $9.02 Cincinnati, OH $3.17 $2.77 $6.04 $6.04 Cleveland, OH $4.30 $3.15 $9.23 Columbus, OH $2.84 $2.84 $5.08 $5.08 Detroit, MI $4.38 $3.77 $8.03 $7.79 Grand Rapids, MI $3.25 $4.32 $8.83 $8.63 Indianapolis, IN $4.55 $3.20 $6.70 Kansas City, MO-KS $4.40 $3.98 $8.13 $7.42 Milwaukee, WI $4.50 $3.55 $5.85 Minneapolis/St. Paul, MN $5.06 $4.97 $6.96 $7.46 Omaha, NE $3.65 $3.50 $6.42 $5.08 St. Louis, MO $3.75 $3.82 Midwest Average* $4.04 $3.62 $7.30 $6.79 WEST Albuquerque, NM $5.56 $4.29 $8.90 $8.90 Bakersfield, CA $4.00 $3.42 $8.00 Boise, ID $5.30 $5.73 $6.45 Denver, CO $6.24 $4.36 $10.67 $11.03 Fairfield, CA $5.28 $5.70 $7.10 $$9.81 Fresno, CA $3.91 $3.13 $8.10 $$8.10 Honolulu, HI $13.20 Las Vegas, NV $5.28 $4.92 $7.00 $9.72 Los Angeles - Inland Empire, CA $5.04 $4.70 $7.15 $7.65 Los Angeles, CA $6.96 $5.76 $9.25 $12.25 Oakland, CA $6.24 $6.00 $6.48 $9.96 Orange County, CA $8.04 $7.32 $15.00 $11.25 Phoenix, AZ $5.62 $4.54 $11.84 $11.87 Pleasanton/Tri-Valley, CA $5.88 $6.00 Portland, OR $5.27 $4.94 $11.17 $9.70 Reno, NV $4.06 $3.84 $6.93 Sacramento, CA $4.32 $3.96 $8.76 $8.64 San Diego, CA $7.80 $6.84 $11.40 $17.64 San Francisco Peninsula, CA $10.32 $10.32 $27.84 $27.84 San Jose - Silicon Valley, CA $7.68 $6.12 $9.12 $17.88 Seattle/Puget Sound, WA $5.96 $5.30 $14.06 $15.17 Stockton/San Joaquin County, CA $3.96 $4.08 $5.76 $8.28 Walnut Creek, CA $4.68 $12.24 West Average* $6.11 $5.30 $10.05 $12.11 AVERAGE* $5.08 $4.62 $9.16 $10.54 * Straight averages used 15 North American Research & Forecast Report Q4 2014 Industrial Market Outlook Colliers International

Canada Industrial Survey Inventory, New Supply, Under Construction INVENTORY (SF) NEW SUPPLY Q4 2014 (SF) YTD NEW SUPPLY (SF) CURRENTLY UNDER CONSTRUCTION (SF) Calgary, AB 132,144,332 291,641 2,448,985 4,272,489 Edmonton, AB 82,910,748 0 642,623 1,772,801 Halifax, NS** 7,647,194 0 0 0 Montréal, QC 324,708,553 401,668 1,062,109 2,381,000 Ottawa, ON*** 43,594,386 0 1,326,945 115,000 Regina, SK 17,766,293 87,800 315,914 250,000 Saskatoon, SK 21,846,000 107,000 577,000 210,566 Toronto, ON 764,787,312 1,446,929 5,044,602 8,170,015 Vancouver, BC 192,025,582 247,630 2,691,390 1,849,002 Victoria, BC 9,159,327 25,125 43,354 0 Waterloo Region, ON 60,301,443 179,911 293,703 477,063 Winnipeg, MB 80,157,082 0 80,000 304,000 CANADA TOTAL 1,737,048,252 2,787,704 14,526,625 19,801,936 Canada Industrial Survey Absorption, Vacancy Rate ABSORPTION Q4 2014 (SF) YTD ABSORPTION SEP 30, 2014 Calgary, AB 1,186,236 5,081,789 4.4% 3.8% Edmonton, AB 296,615 660,689 3.2% 3.4% Halifax, NS** 0-57,789 12.2% 12.2% Montréal, QC 1,020,393 4,488,009 4.1% 4.0% Ottawa, ON*** 175,424 133,191 4.2% 3.8% Regina, SK 140,255 368,439 2.4% 2.1% Saskatoon, SK -16,339 243,661 5.1% 5.6% Toronto, ON 116,767 3,662,064 3.7% 3.8% Vancouver, BC 589,310 2,797,692 4.1% 3.9% Victoria, BC 0 70,739 4.6% 4.6% Waterloo Region, ON 382,468-418,449 7.8% 7.0% Winnipeg, MB -241,219-12,716 3.5% 3.8% CANADA TOTAL 3,649,910 17,017,319 4.0% 4.0% Canada Industrial Survey Forecasts, Sales Price, Cap Rates VACANCY FORECAST RENT FORECAST ABSORPTION FORECAST SALES PRICE (3 MONTHS) X (3 MONTHS) X (3 MONTHS) X (CAD/PSF) CAP RATE Calgary, AB Up Down Negative $175.00 6.5% Edmonton, AB Up Down Positive $119.94 7.2% Halifax, NS** Down Same Negative Montréal, QC Same Same Positive $65.00 7.3% Ottawa, ON*** Same Same Close to zero $110.00 6.8% Regina, SK Same Same Positive $160.00 7.2% Saskatoon, SK Up Same Positive $165.00 7.2% Toronto, ON Same Same Positive $96.50 6.2% Vancouver, BC Down Up Positive $182.00 5.5% Victoria, BC Same Same Positive $195.00 7.5% Waterloo Region, ON Down Same Positive $71.00 7.0% Winnipeg, MB Up Same Negative $100.00 7.0% CANADA AVERAGES* $130.86 6.8% * Straight averages used ** Q2 data displayed *** Q3 data displayed 16 North American Research & Forecast Report Q4 2014 Industrial Market Outlook Colliers International

Canada Industrial Survey Average Asking Rents As Of Dec 2014 WAREHOUSE/ DISTRIBUTION SPACE (CAD/SF/YR) BULK SPACE (CAD/SF/YR) FLEX/SERVICE SPACE (CAD/SF/YR) TECH/ R&D SPACE (CAD/SF/YR) Calgary, AB $9.50 $8.25 $12.50 $12.50 Edmonton, AB $8.40 $7.85 $10.25 $17.10 Halifax, NS** $8.15 $7.92 $9.02 $15.00 Montréal, QC $4.75 $4.25 $5.75 $8.00 Ottawa, ON*** $5.50 $4.25 $8.93 $8.93 Regina, SK $11.00 $10.00 $12.00 $13.75 Saskatoon, SK $11.00 $10.00 $12.00 $14.00 Toronto, ON $5.35 $5.42 Vancouver, BC $8.54 $7.72 $9.22 $14.00 Victoria, BC $11.50 $10.00 $13.50 $13.50 Waterloo Region, ON $4.56 $3.63 $8.49 $8.49 Winnipeg, MB $6.63 $5.50 $10.95 $12.75 CANADA AVERAGES* $7.91 $7.07 $10.24 $12.55 Canada Vacancy Rankings Regina, SK 2.1% Edmonton, AB 3.4% Winnipeg, MB 3.8% Toronto, ON 3.8% Calgary, AB 3.8% Ottawa, ON*** 3.8% Vancouver, BC 3.9% Montréal, QC 4.0% CANADA AVERAGE 4.0% Victoria, BC 4.6% Saskatoon, SK 5.6% Waterloo Region, ON 7.0% Halifax, NS** 12.2% Vacancy Rankings Honolulu, HI 2.1% Bakersfield, CA 2.2% Los Angeles, CA 2.3% Omaha, NE 3.0% San Francisco Peninsula, CA 3.0% Orange County, CA 3.4% Boise, ID 3.7% Oakland, CA 3.9% Denver, CO 4.4% Los Angeles - Inland Empire, CA 4.5% Seattle/Puget Sound, WA 4.8% Houston, TX 4.8% Long Island, NY 5.0% Columbus, OH 5.4% Savannah, GA 5.5% Milwaukee, WI 5.5% Portland, OR 5.6% Cincinnati, OH 5.7% Fairfield, CA 5.8% Miami, FL 5.9% West Palm Beach, FL 5.9% Grand Rapids, MI 5.9% Columbia, SC 6.0% Kansas City, MO-KS 6.3% Pleasanton/Tri-Valley, CA 6.4% Indianapolis, IN 6.5% Cleveland, OH 6.5% Louisville, KY 6.8% Albuquerque, NM 6.9% San Diego, CA 6.9% Walnut Creek, CA 6.9% St. Louis, MO 7.0% Greenville/Spartanburg, SC 7.1% Minneapolis/St. Paul, MN 7.1% AVERAGE 7.2% San Jose - Silicon Valley, CA 7.3% Nashville, TN 7.3% Ft. Lauderdale-Broward, FL 7.4% Pittsburgh, PA 7.5% Charleston, SC 7.5% Dallas-Ft. Worth, TX 7.6% Chicago, IL 7.7% Richmond, VA 7.8% Fresno, CA 7.8% Jacksonville, FL 7.8% Detroit, MI 7.9% Reno, NV 8.1% New Jersey - Northern*** 8.2% Stockton/ San Joaquin County, CA 8.3% New Jersey - Central*** 8.3% Hartford, CT 8.4% Raleigh, NC 8.4% Philadelphia, PA 8.6% Tampa Bay, FL 8.6% Orlando, FL 8.9% Baltimore, MD 8.9% Las Vegas, NV 9.1% Atlanta, GA 9.1% Washington, DC 9.7% Birmingham, AL 10.3% Charlotte, NC 10.6% Sacramento, CA 11.0% Little Rock, AR 11.6% Memphis, TN 12.2% Phoenix, AZ 12.3% Boston, MA*** 19.1% * Straight averages used ** Q2 data displayed *** Q3 data displayed 17 North American Research & Forecast Report Q4 2014 Industrial Market Outlook Colliers International

INDUSTRIAL SERVICES contact Dwight Hotchkiss President, Brokerage Services USA National Director, Industrial USA +1 213 532 3229 dwight.hotchkiss@colliers.com FOR MORE INFORMATION Andrea Cross Office Research Manager USA +1 415 788 3100 Andrea.Cross@colliers.com Pete Culliney Director of Research Global +1 212 716 3689 Pete.Culliney@colliers.com CONTRIBUTORS Jeff Simonson Senior Research Analyst USA AJ Paniagua Research Analyst USA Andrew Nelson Chief Economist USA Copyright 2015 Colliers International. The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report. Colliers International 601 Union Street, Suite 4800 Seattle, WA 98101 +1 206 695 4200 colliers.com