CoStar Office Report - Commercial Real Estate

The CoStar
Industrial Report

MID-YEAR 2011

Broward County Industrial Market

MID-YEAR 2011 – BROWARD COUNTY

Broward County Industrial Market

Table of Contents

Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A

Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B

Terms & Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C

Market Highlights & Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

CoStar Markets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Employment & Tenant Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Employment & Unemployment Analysis
Tenant Profiles
Inventory & Development Analysis
Select Top Under Construction Properties
Select Top Deliveries

Figures at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Figures at a Glance by Building Type & Market
Historical Figures at a Glance
Leasing Activity Analysis
Select Top Lease Transactions

Sales Activity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Sales Activity Analysis
Select Top Sales Transactions
Select Same Building Sales
Select Land Sales

Analysis of Individual CoStar Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Central Broward Market
Coral Springs Market
Northeast Broward Market
Outlying Broward Market
Pompano Beach Market
Southeast Broward Market
Southwest Broward Market
West Sunrise Market

©2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT A

BROWARD COUNTY – MID-YEAR 2011

Broward County Industrial Market

Methodology

The CoStar Industrial Report calculates Industrial statistics using CoStar Group's base of existing,
under construction and under renovation Industrial buildings in each given metropolitan area. All
Industrial building types are included, including warehouse, flex / research & development, distribution,
manufacturing, industrial showroom, and service buildings, in both single-tenant and multi-tenant
buildings, including owner-occupied buildings. CoStar Group's national database includes approximately
71.7 billion square feet of coverage in 3 million properties. All rental rates reported in the CoStar
Industrial Report are calculated using the quoted rental rate for each property. The quoted rental rate is
exclusive of the expense pass through associated with the rent.

For information on subscribing to CoStar’s other products and services, please contact us at
1-877-7COSTAR, or visit our web site at www.costar.com

© Copyright 2010 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of the
information contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness or
completeness of the information. The publication is provided ‘as is’ and CoStar expressly disclaims any guarantees, representations or
warranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

CoStar Group, Inc.
1331 L ST NW • Washington, DC USA 20005 • (800) 204-5960 • www.costar.com • NASDAQ: CSGP

B THE COSTAR INDUSTRIAL REPORT ©2011 COSTAR GROUP, INC.

MID-YEAR 2011 – BROWARD COUNTY

Broward County Industrial Market

Terms & Definitions

Availability Rate: The ratio of available space to total rentable Deliveries: Buildings that complete construction during a specified
space, calculated by dividing the total available square feet by the period of time. In order for space to be considered delivered, a
total rentable square feet. certificate of occupancy must have been issued for the property.
Available Space: The total amount of space that is currently Delivery Date: The date a building completes construction and
being marketed as available for lease in a given time period. It receives a certificate of occupancy.
includes any space that is available, regardless of whether the Developer: The company, entity or individual that transforms raw
space is vacant, occupied, available for sublease, or available at land to improved property by use of labor, capital and entrepre-
a future date. neurial efforts.
Build-to-Suit: A term describing a particular property, developed Direct Space: Space that is being offered for lease directly from
specifically for a certain tenant to occupy, with structural features, the landlord or owner of a building, as opposed to space being
systems, or improvement work designed specifically for the needs offered in a building by another tenant (or broker of a tenant)
of that tenant. A build-to-suit can be leased or owned by the ten- trying to sublet a space that has already been leased.
ant. In a leased build-to-suit, a tenant will usually have a long Existing Inventory: The square footage of buildings that have
term lease on the space. received a certificate of occupancy and are able to be occupied
Buyer: The individual, group, company, or entity that has pur- by tenants. It does not include space in buildings that are either
chased a commercial real estate asset. planned, under construction or under renovation.
Cap Rate: Short for capitalization rate. The Cap Rate is a calcula- Flex Building: A type of building designed to be versatile, which
tion that reflects the relationship between one year’s net operating may be used in combination with office (corporate headquarters),
income and the current market value of a particular property. research and development, quasi-retail sales, and including but
The Cap Rate is calculated by dividing the annual net operating not limited to industrial, warehouse, and distribution uses. A typi-
income by the sales price (or asking sales price). cal flex building will be one or two stories with at least half of the
CBD: Abbreviation for Central Business District. (See also: rentable area being used as office space, have ceiling heights of 16
Central Business District) feet or less, and have some type of drive-in door, even though the
Central Business District: The designations of Central Business door may be glassed in or sealed off.
District (CBD) and Suburban refer to a particular geographic area Full Service Rental Rate: Rental rates that include all operating
within a metropolitan statistical area (MSA) describing the level expenses such as utilities, electricity, janitorial services, taxes and
of real estate development found there. The CBD is characterized insurance.
by a high density, well organized core within the largest city of a Gross Absorption: The total change in occupied space over a
given MSA. given period of time, counting space that is occupied but not
Class A: A classification used to describe buildings that generally space that is vacated by tenants. Gross absorption differs from
qualify as extremely desirable investment-grade properties and leasing Activity, which is the sum of all space leased over a certain
command the highest rents or sale prices compared to other period of time. Unless otherwise noted Gross Absorption includes
buildings in the same market. Such buildings are well located direct and sublease space.
and provide efficient tenant layouts as well as high quality, and in Growth in Inventory: The change in size of the existing square
some buildings, one-of-a-kind floor plans. They can be an archi- footage in a given area over a given period of time, generally due
tectural or historical landmark designed by prominent architects. to the construction of new buildings.
These buildings contain a modern mechanical system, and have Industrial Building: A type of building adapted for such uses as
above-average maintenance and management as well as the best the assemblage, processing, and/or manufacturing of products
quality materials and workmanship in their trim and interior fit- from raw materials or fabricated parts. Additional uses include
tings. They are generally the most attractive and eagerly sought warehousing, distribution, and maintenance facilities. The pri-
by investors willing to pay a premium for quality. mary purpose of the space is for storing, producing, assembling,
Class B: A classification used to describe buildings that generally or distributing product.
qualify as a more speculative investment, and as such, command Landlord Rep: (Landlord Representative) In a typical lease trans-
lower rents or sale prices compared to Class A properties. Such action between an owner/landlord and tenant, the broker that
buildings offer utilitarian space without special attractions, and represents the interests of the owner/landlord is referred to as the
have ordinary design, if new or fairly new; good to excellent Landlord Rep.
design if an older non-landmark building. These buildings typical- Leased Space: All the space that has a financial lease obligation.
ly have average to good maintenance, management and tenants. It includes all leased space, regardless of whether the space is
They are less appealing to tenants than Class A properties, and currently occupied by a tenant. Leased space also includes space
may be deficient in a number of respects including floor plans, being offered for sublease.
condition and facilities. They lack prestige and must depend Leasing Activity: The volume of square footage that is commit-
chiefly on a lower price to attract tenants and investors. ted to and signed under a lease obligation for a specific building
Class C: A classification used to describe buildings that gener- or market in a given period of time. It includes direct leases,
ally qualify as no-frills, older buildings that offer basic space and subleases and renewals of existing leases. It also includes any
command lower rents or sale prices compared to other buildings pre-leasing activity in planned, under construction, or under
in the same market. Such buildings typically have below-average renovation buildings.
maintenance and management, and could have mixed or low Market: Geographic boundaries that serve to delineate core areas
tenant prestige, inferior elevators, and/or mechanical/electrical that are competitive with each other and constitute a generally
systems. These buildings lack prestige and must depend chiefly accepted primary competitive set of areas. Markets are building-
on a lower price to attract tenants and investors. type specific, and are non-overlapping contiguous geographic
Construction Starts: Buildings that began construction during a designations having a cumulative sum that matches the boundar-
specific period of time. (See also: Deliveries) ies of the entire Region (See also: Region). Markets can be further
Contiguous Blocks of Space: Space within a building that is, or is subdivided into Submarkets. (See also: Submarkets)
able to be joined together into a single contiguous space.

©2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT C

BROWARD COUNTY – MID-YEAR 2011

Broward County Industrial Market

Multi-Tenant: Buildings that house more than one tenant at a Seller: The individual, group, company, or entity that sells a par-
given time. Usually, multi-tenant buildings were designed and ticular commercial real estate asset.
built to accommodate many different floor plans and designs for SF: Abbreviation for Square Feet.
different tenant needs. (See also: Tenancy). Single-Tenant: Buildings that are occupied, or intended to be
Net Absorption: The net change in occupied space over a given occupied by a single tenant. (See also: Build-to-suit and Tenancy)
period of time. Unless otherwise noted Net Absorption includes Sublease Space: Space that has been leased by a tenant and is
direct and sublease space. being offered for lease back to the market by the tenant with
Net Rental Rate: A rental rate that excludes certain expenses that the lease obligation. Sublease space is sometimes referred to as
a tenant could incur in occupying office space. Such expenses sublet space.
are expected to be paid directly by the tenant and may include Submarkets: Specific geographic boundaries that serve to delin-
janitorial costs, electricity, utilities, taxes, insurance and other eate a core group of buildings that are competitive with each
related costs. other and constitute a generally accepted primary competitive
New Space: Sometimes called first generation space, refers to set, or peer group. Submarkets are building type specific (office,
space that has never been occupied and/or leased by a tenant. industrial, retail, etc.), with distinct boundaries dependent on
Occupied Space: Space that is physically occupied by a tenant. different factors relevant to each building type. Submarkets are
It does not include leased space that is not currently occupied non-overlapping, contiguous geographic designations having a
by a tenant. cumulative sum that matches the boundaries of the Market they
Office Building: A type of commercial building used exclusively are located within (See also: Market).
or primarily for office use (business), as opposed to manufactur- Suburban: The Suburban and Central Business District (CBD)
ing, warehousing, or other uses. Office buildings may sometimes designations refer to a particular geographic area within a metro-
have other associated uses within part of the building, i.e., retail politan statistical area (MSA). Suburban is defined as including all
sales, financial, or restaurant, usually on the ground floor. office inventory not located in the CBD. (See also: CBD)
Owner: The company, entity, or individual that holds title on a Tenancy: A term used to indicate whether or not a building is
given building or property. occupied by multiple tenants (See also: Multi-tenant) or a single
Planned/Proposed: The status of a building that has been tenant. (See also: Single-tenant)
announced for future development but not yet started Tenant Rep: Tenant Rep stands for Tenant Representative. In a
construction. typical lease transaction between an owner/landlord and tenant,
Preleased Space: The amount of space in a building that has been the broker that represents the interests of the tenant is referred to
leased prior to its construction completion date, or certificate of as a Tenant Rep.
occupancy date. Time On Market: A measure of how long a currently available
Price/SF: Calculated by dividing the price of a building (either space has been marketed for lease, regardless of whether it is
sales price or asking sales price) by the Rentable Building Area vacant or occupied.
(RBA). Under Construction: The status of a building that is in the process
Property Manager: The company and/or person responsible for of being developed, assembled, built or constructed. A building is
the day-to-day operations of a building, such as cleaning, trash considered to be under construction after it has begun construc-
removal, etc. The property manager also makes sure that the vari- tion and until it receives a certificate of occupancy.
ous systems within the building, such as the elevators, HVAC, and Vacancy Rate: A measurement expressed as a percentage of the
electrical systems, are functioning properly. total amount of physically vacant space divided by the total
Quoted Rental Rate: The asking rate per square foot for a par- amount of existing inventory. Under construction space generally
ticular building or unit of space by a broker or property owner. is not included in vacancy calculations.
Quoted rental rates may differ from the actual rates paid by Vacant Space: Space that is not currently occupied by a tenant,
tenants following the negotiation of all terms and conditions in regardless of any lease obligation that may be on the space.
a specific lease. Vacant space could be space that is either available or not avail-
RBA: Abbreviation for Rentable Building Area. (See also: able. For example, sublease space that is currently being paid for
Rentable Building Area) by a tenant but not occupied by that tenant, would be considered
Region: Core areas containing a large population nucleus, that vacant space. Likewise, space that has been leased but not yet
together with adjacent communities have a high degree of eco- occupied because of finish work being done, would also be con-
nomic and social integration. Regions are further divided into sidered vacant space.
market areas, called Markets. (See also: Markets) Weighted Average Rental Rate: Rental rates that are calculated by
Relet Space: Sometimes called second generation or direct space, factoring in, or weighting, the square footage associated with each
refers to existing space that has previously been occupied by particular rental rate. This has the effect of causing rental rates
another tenant. on larger spaces to affect the average more than that of smaller
Rentable Building Area: (RBA) The total square footage of a spaces. The weighted average rental rate is calculated by taking
building that can be occupied by, or assigned to a tenant for the the ratio of the square footage associated with the rental rate on
purpose of determining a tenant’s rental obligation. Generally each individual available space to the square footage associated
RBA includes a percentage of common areas including all hall- with rental rates on all available spaces, multiplying the rental rate
ways, main lobbies, bathrooms, and telephone closets. by that ratio, and then adding together all the resulting numbers.
Rental Rates: The annual costs of occupancy for a particular Unless specifically specified otherwise, rental rate averages include
space quoted on a per square foot basis. both Direct and Sublet available spaces.
Sales Price: The total dollar amount paid for a particular property Year Built: The year in which a building completed construction
at a particular point in time. and was issued a certificate of occupancy.
Sales Volume: The sum of sales prices for a given group of build- YTD: Abbreviation for Year-to-Date. Describes statistics that are
ings in a given time period. cumulative from the beginning of a calendar year through what-
ever time period is being studied.

D THE COSTAR INDUSTRIAL REPORT ©2011 COSTAR GROUP, INC.

MID-YEAR 2011 – BROWARD COUNTY

Broward County Industrial Market

OVERVIEW

Broward County’s Vacancy Stays at 9.5%
Net Absorption Negative (5,566) SF in the Quarter

T he Broward County Industrial market ended the second tive 350,316 in the fourth quarter 2010, and positive 36,412 in
quarter 2011 with a vacancy rate of 9.5%. The vacancy the third quarter 2010.
rate was unchanged over the previous quarter, with net
absorption totaling negative (5,566) square feet in the second Vacancy
quarter. Vacant sublease space decreased in the quarter, ending The Industrial vacancy rate in the Broward County market
the quarter at 429,976 square feet. Rental rates ended the second
quarter at $7.54, a decrease over the previous quarter. A total areno changed to 9.5% at the end of the second quarter 2011.
of one building delivered to the market in the quarter totaling The vacancy rate was 9.5% at the end of the first quarter 2011,
10,000 square feet, with no properties under construction at the 9.1% at the end of the fourth quarter 2010, and 9.4% at the end
end of the quarter. of the third quarter 2010.

Absorption Flex projects reported a vacancy rate of 11.0% at the end
Net absorption for the overall Broward County Industrial of the second quarter 2011, 11.0% at the end of the first quarter
2011, 10.9% at the end of the fourth quarter 2010, and 11.3%
market was negative (5,566) square feet in the second quarter at the end of the third quarter 2010.
2011. That compares to negative (470,630) square feet in the first
quarter 2011, positive 421,405 square feet in the fourth quarter Warehouse projects reported a vacancy rate of 9.2% at the
2010, and positive 97,518 square feet in the third quarter 2010. end of the second quarter 2011, 9.2% at the end of first quarter
2011, 8.8% at the end of the fourth quarter 2010, and 9.1% at
Tenants moving into large blocks of space in 2011 include: the end of the third quarter 2010.
GA Telesis moving into 140,000 square feet at 1850 NW 49th
St, General Services Administration moving into 112,688 square Largest Lease Signings
feet at Premier Turnpike Park - Building 3, and K-1 Speed, Inc. The largest lease signings occurring in 2011 included: the
moving into 75,803 square feet at 2950 Stirling Rd.
66,095-square-foot lease signed by Gregg Appliances at Senaca
The Flex building market recorded net absorption of posi- North - Building M in the Southeast Broward market; the
tive 1,259 square feet in the second quarter 2011, compared to 65,669-square-foot deal signed by Challenge Warehousing at Port
negative (8,872) square feet in the first quarter 2011, positive 95 Commerce Park - Building four in the Southeast Broward mar-
71,089 in the fourth quarter 2010, and positive 61,106 in the ket; and the 56,354-square-foot lease signed by Argo Turboserve
third quarter 2010. Corporation at Premier Turnpike Park - Building One in the
Pompano Beach market.
The Warehouse building market recorded net absorption of
negative (6,825) square feet in the second quarter 2011 compared Sublease Vacancy
to negative (461,758) square feet in the first quarter 2011, posi- The amount of vacant sublease space in the Broward

County market decreased to 429,976 square feet by the end of

Vacancy Rates by Building Type 1999-2011

Flex Warehouse Total Market

14%

12%

10%

Vacancy Rate 8%

6%

4%

2%

0% 2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011
1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q
1999
3q

Source: CoStar Property®

Absorption©2011 COSTAR GROUP, INC. & Deliveries U.S. VacancyTHE COSTAR INDUSTRIAL REPORT Comparison 1

Past 8 Quarters Past 8 Quarters

BROWARD COUNTY – MID-YEAR 2011

Broward County Industrial Market

OVERVIEW

the second quarter 2011, from 563,141 square feet at the end of The only delivery in 2011 has been 5000 NW 17th St,
the first quarter 2011. There was 548,887 square feet vacant at a 10,000-square-foot facility that delivered in second quarter
the end of the fourth quarter 2010 and 513,153 square feet at the 2011.
end of the third quarter 2010.
The largest projects underway at the end of second quarter
Broward County’s Flex projects reported vacant sublease 2011 were 1950 Banks Rd, a 65,000-square-foot building with
space of 70,961 square feet at the end of second quarter 2011, 100% of its space pre-leased, and 2140 S State Rd 7 (Extra Space
down from the 79,581 square feet reported at the end of the first Storage), a 50,518-square-foot facility that is 100% pre-leased.
quarter 2011. There were 79,581 square feet of sublease space
vacant at the end of the fourth quarter 2010, and 79,581 square Inventory
feet at the end of the third quarter 2010. Total Industrial inventory in the Broward County market

Warehouse projects reported decreased vacant sublease area amounted to 134,503,179 square feet in 6,544 buildings as
space from the first quarter 2011 to the second quarter 2011. of the end of the second quarter 2011. The Flex sector consisted of
Sublease vacancy went from 483,560 square feet to 359,015 18,739,757 square feet in 1,109 projects. The Warehouse sector
square feet during that time. There was 469,306 square feet at consisted of 115,763,422 square feet in 5,435 buildings. Within
the end of the fourth quarter 2010, and 433,572 square feet at the the Industrial market there were 439 owner-occupied buildings
end of the third quarter 2010. accounting for 14,483,087 square feet of Industrial space.

Rental Rates Sales Activity
Tallying industrial building sales of 15,000 square feet or
999-2011 The average quoted asking rental rate for available Industrial
larger, Broward County industrial sales figures rose during the
Warehoqsupusaeacretewr a2s0$171.5in4 per sBqruoawrearfdooCt opuernTotytyaelamMraaarkrtekttehte end of the second first quarter 2011 in terms of dollar volume compared to the
the area. This repre- fourth quarter of 2010.

sented a 0.8% decrease in quoted rental rates from the end of the In the first quarter, 11 industrial transactions closed with a
total volume of $38,761,675. The 11 buildings totaled 397,333
first quarter 2011, when rents were reported at $7.60 per square square feet and the average price per square foot equated to
$97.55 per square foot. That compares to 13 transactions totaling
foot. $31,702,462 in the fourth quarter. The total square footage was
567,865 for an average price per square foot of $55.83.
The average quoted rate within the Flex sector was $9.92
Total year-to-date industrial building sales activity in 2011
per square foot at the end of the second quarter 2011, while is up compared to the previous year. In the first three months of
2011, the market saw 11 industrial sales transactions with a total
Warehouse rates stood at $7.25. At the end of the first quarter volume of $38,761,675. The price per square foot has averaged
$97.55 this year. In the first three months of 2010, the market
2011, Flex rates were $10.11 per square foot, and Warehouse posted four transactions with a total volume of $7,695,000. The
price per square foot averaged $62.05.
rates were $7.27.
Cap rates have been lower in 2011, averaging 8.40%, com-
Deliveries and Construction pared to the first three months of last year when they averaged
During the second quarter 2011, one building totaling 9.62%.

10,000 square feet were completed in the Broward County mar- One of the largest transactions that has occurred within
2005 2005ket20a0r6ea2.00T6hi2s00c7om20p0a7re2s00t8o 020b08uil2d00in9 gs20t0o9ta2li0n10g 020s1q0 ua20r1e1 feet that the last four quarters in the Broward County market is the sale
1q 3qwer1eq com3qplet1eqd in3qthe 1fqirst 3qquart1eqr 2031q 1, o1qne b3uq ildi1nqg totaling of Weston Business Center in Weston. This 687,118-square-foot
industrial building sold for $65,000,000, or $94.60 per square
69,956 square feet completed in the fourth quarter 2010, and foot. The property sold on 4/13/2010, at a 7.50% cap rate.
nothing completed in the third quarter 2010.
Reports compiled by: Matt Burdette, CoStar Research Manager and the
U.S. Vacancy Comparison South Florida research staff.

Past 8 Quarters

Vacancy Rate 10.4% Broward County United States
10.2%
10.0% 2009 2010 2010 2010 2010 2011 2011
4q 1q 2q 3q 4q 1q 2q
9.8%
9.6%
9.4%
9.2%
9.0%
8.8%
8.6%
8.4%

2009
3q

Source: CoStar Property•

2 THE COSTAR INDUSTRIAL REPORT ©2011 COSTAR GROUP, INC.

MID-YEAR 2011 – BROWARD COUNTY

Broward County Industrial Market

MARKETS

CoStar Markets

In analyzing metropolitan areas in the U.S., CoStar has developed geographic designations to help group properties together, called
Regions, Markets and Submarkets. Regions are the equivalent of metropolitan areas, or areas containing a large population nucleus,
that together with adjacent communities have a high degree of economic and social integration. Regions are then divided into
Markets, which are core areas within a metropolitan area that are known to be competitive with each other in terms of attracting
and keeping tenants. Markets are then further subdivided into smaller units called Submarkets, which serve to delineate a core group
of buildings that are competitive with each other and constitute a generally accepted competitive set, or peer group.

Markets
Central Broward Ind
Coral Springs Ind
Northeast Broward Ind
Outlying Broward Ind
Pompano Beach Ind
Southeast Broward Ind
Southwest Broward Ind
West Sunrise Ind

©2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 3

BROWARD COUNTY – MID-YEAR 2011

Broward County Industrial Market

EMPLOYMENT AND TENANT

Total Employment by Industry Total Employment Growth

Percent of Total Employment by Industry Total Number of Jobs Added Per Year

0%4% 3% Natural Resources & 6.0% Broward County U.S. Average
14% Mining 5.0%
23% Construction 4.0%
4% 18% 3.0%
11% Manufacturing 2.0%
14% 1.0%
Trade, Transportation & Percent Growth 0.0%
Utilities -1.0%
Information -2.0%
-3.0%
2% Financial Activities -4.0%
-5.0%
7% Professional & Business -6.0%
Services -7.0%
Education & Health -8.0%
-9.0%
Services
Leisure & Hospitality

Other Services

Government

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source: Department of Labor, Bureau of Labor Statistics Source: Department of Labor, Bureau of Labor Statistics

Total Employment Growth Industrial* Employment Growth

Cumulative Growth in Jobs Over the Past 5 Years Number of Industrial* Jobs Added Per Year

Market Employment Inventory Difference 5.0% Broward County U.S. Average
Atlanta Growth Growth -20.80% 4.0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
-15.40% 3.0%
-16.00% 4.80% -3.50% 2.0%
-13.40% 1.0%
Chicago -10.40% 5.00% -21.80% 0.0%
-1.80% -1.0%
Dallas/Ft Worth 1.50% 5.00% -35.80% -2.0%
-16.80% -3.0%
Denver -9.20% 4.20% -11.00% Percent Growth -4.0%
-7.20% -5.0%
Detroit -20.80% 1.00% -9.70% -6.0%
-7.0%
Houston 7.80% 9.60% -8.0%
-9.0%
Inland Empire (California) -20.40% 15.40%

Los Angeles -15.20% 1.60%

Northern New Jersey -8.60% 2.40%

Pittsburgh -4.40% 2.80%

Broward County -7.00% 2.70% 2001

Source: Department of Labor, Bureau of Labor Statistics Source: Department of Labor, Bureau of Labor Statistics. * Industrial employment is defined as jobs in the
Manufacturing, and Trade, Transportation & Utilities industries
Historical Unemployment Rates

Broward County U.S. Average

12.0%

10.0%

Percent Unemployment 8.0%

6.0%

4.0%

2.0%

0.0% 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011
3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q
2001
1q

Source: Department of Labor, Bureau of Labor Statistics

4 THE COSTAR INDUSTRIAL REPORT ©2011 COSTAR GROUP, INC.

MID-YEAR 2011 – BROWARD COUNTY

Broward County Industrial Market

EMPLOYMENT AND TENANT

Flex Tenants by Size Range Warehouse Tenants by Size Range

Based on Total Number of Tenants Based on Total Number of Tenants

75,000 SF & Up 1.0% 75,000 SF & Up 3.7%

50,000-74,999 SF 0.9% 50,000-74,999 SF 3.1%

25,000-49,999 SF 3.0% 25,000-49,999 SF 9.3%

10,000-24,999 SF 10.0% 10,000-24,999 SF 19.1%

5,000-9,999 SF 16.0% 5,000-9,999 SF 13.9%

2,500-4,999 SF 23.6% 2,500-4,999 SF 17.0%

Up to 2,499 SF 45.5% Up to 2,499 SF 33.9%

0% 10% 20% 30% 40% 50% 0% 5% 10% 15% 20% 25% 30% 35% 40%
Percentage of Tenants
Percentage of Tenants

Source: CoStar Tenant® Source: CoStar Tenant®

Flex Tenants by Lease Expiration Warehouse Lease Expiration

Based on Total Square Footage of Tenants Based on Total Square Footage of Tenants

2017 4.9% 2017 6.9%

2016 12.6% 2016 5.4%

2015 12.8% 2015 10.2%

2014 14.9% 2014 13.9%

2013 12.2% 2013 19.8%

2012 12.2% 2012 21.4%

0% 2% 4% 6% 8% 10% 12% 14% 16% 0% 5% 10% 15% 20% 25%
Percentage of Tenants Percentage of Tenants

©2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 5

BROWARD COUNTY – MID-YEAR 2011

Broward County Industrial Market

INVENTORY & DEVELOPMENT

Historical Deliveries 1982 - 2011

Deliveries Average Delivered SF
7.0 6.2

6.2 4.4

6.0
5.1

5.0 4.5 4.4

Millions of SF 4.0 3.7
3.0 2.7 2.5 2.9
2.0 2.8 3.4 2.7
2.4 2.9
1.0
2.3 2.4 2.0 1.8 2.0
1.4
1.7 1.9 1.8 1.0

1.0 1.1 1.2

0.1 0.1

0.0

1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source: CoStar Property® * Future deliveries based on current under construction buildings.

Construction Activity Markets Ranked by Under Construction RBA

Under Construction Inventory Average Bldg Size

Market # Bldgs Total RBA Preleased SF Preleased % All Existing U/C

West Sunrise Ind 0 0 0 0.0% 43,711 0
0
Central Broward Ind 0 0 0 0.0% 12,767 0
0
Coral Springs Ind 0 0 0 0.0% 28,676 0
0
Northeast Broward Ind 0 0 0 0.0% 24,366 0
0
Outlying Broward Ind 0 0 0 0.0% 11,539 0

Pompano Beach Ind 0 0 0 0.0% 22,305

Southeast Broward Ind 0 0 0 0.0% 16,891

Southwest Broward Ind 0 0 0 0.0% 45,242
Totals 0 0 0 0.0% 20,554

Source: CoStar Property®

Recent Deliveries

Leased & Un-Leased SF in Deliveries Since 2007

Leased Un-Leased
3.0

2.5

Millions of SF 2.0

1.5

1.0

0.5

0.0 2008 2009 2010 2011
2007

Source: CoStar Property®

6 THE COSTAR INDUSTRIAL REPORT ©2011 COSTAR GROUP, INC.

MID-YEAR 2011 – BROWARD COUNTY

Broward County Industrial Market

INVENTORY & DEVELOPMENT

Historical Construction Starts & Deliveries Deliveries

Square Footage Per Quarter Starting and Completing Construction

Construction Starts
1.2

1.0
1.0

Millions of SF 0.8 0.8 0.6 0.4
0.7 0.3 0.3 0.3

0.6

0.4

0.2 0.1 0.1 2008 4q 0.1 0.1 0.0 0.0 0.0 0.1 0.1 0.0 0.0 0.1 0.0 0.0 0.0 0.0
2008 2q 2008 3q 0.1 2009 2q 2009 3q 2009 4q 0.0 0.0 2010 3q 0.0 2011 1q 2011 2q
0.0
2008 1q 2009 1q 2010 1q 2010 2q 2010 4q

Source: CoStar Property®

Recent Deliveries by Project Size Breakdown of Year-to-Date Development Based on RBA of Project

Building Size # Bldgs RBA SF Leased % Leased Avg Rate Single-Tenant Multi-Tenant

< 50,000 SF 1 10,000 2,900 29.0% $0.00 10,000 0

50,000 SF - 99,999 SF 0 0 0 0.0% $0.00 00

100,000 SF - 249,999 SF 0 0 0 0.0% $0.00 00

250,000 SF - 499,999 SF 0 0 0 0.0% $0.00 00

>= 500,000 SF 0 0 0 0.0% $0.00 00

Source: CoStar Property®

Recent Development by Tenancy Existing Inventory Comparison

Based on RBA Developed for Single & Multi-Tenant Use Based on Total RBA

2011 Deliveries No Properties Under Construction By Building Type By Tenancy Type

0% 14% 28%
100% 72%
86%

Multi Single Flex Warehouse Multi Single
Source: CoStar Property®
Source: CoStar Property®

©2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 7

BROWARD COUNTY – MID-YEAR 2011

Broward County Industrial Market

INVENTORY & DEVELOPMENT

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������������������������ THE COSTAR INDUSTRIAL REPORT ©2011 COSTAR GROUP, INC.

8

MID-YEAR 2011 – BROWARD COUNTY

Broward County Industrial Market

FIGURES AT A GLANCE

Flex Market Statistics Mid-Year 2011

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries Const SF Rates
Market # Blds Total RBA Direct SF Vac %
215,198 280,198 9.3% (13,429) 0
Central Broward Ind 262 3,020,681 0 0 $9.52
0
Coral Springs Ind 45 1,545,130 140,407 140,407 9.1% (8,806) 0 0 $9.29
0
Northeast Broward Ind 61 1,409,563 151,820 151,820 10.8% 32,638 0 0 $10.45
0
Outlying Broward Ind 1 37,686 00 0.0% 0 0 0 $11.95
0
Pompano Beach Ind 134 3,096,778 444,835 444,835 14.4% (10,108) 0 $8.04

Southeast Broward Ind 445 4,514,399 243,198 243,198 5.4% 42,267 0 $10.67

Southwest Broward Ind 93 3,159,572 401,308 407,269 12.9% (19,461) 0 $9.88

West Sunrise Ind 68 1,955,948 391,442 391,442 20.0% (30,714) 0 $11.63
Totals 1,109 18,739,757 1,988,208 2,059,169 11.0% (7,613) 0 $9.92

Source: CoStar Property®

Warehouse Market Statistics Mid-Year 2011

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries Const SF Rates
Market # Blds Total RBA Direct SF Vac %
1,730,817 9.1% (135,440) 0
Central Broward Ind 1,463 19,002,512 1,730,817 10,000 0 $6.92

Coral Springs Ind 203 5,566,613 396,499 396,499 7.1% 16,840 0 0 $7.60
0
Northeast Broward Ind 467 11,455,755 1,328,125 1,389,897 12.1% 46,098 0 0 $6.78
0
Outlying Broward Ind 4 20,009 8,866 8,866 44.3% 0 0 0 $0.00
0
Pompano Beach Ind 1,296 28,799,601 2,951,689 3,023,613 10.5% (314,756) 10,000 0 $7.18

Southeast Broward Ind 1,569 29,503,803 2,078,653 2,078,653 7.0% 132,980 0 $7.28

Southwest Broward Ind 277 13,579,798 1,349,885 1,491,104 11.0% (204,960) 0 $7.69

West Sunrise Ind 156 7,835,331 488,818 572,918 7.3% (9,345) 0 $8.18
Totals 5,435 115,763,422 10,333,352 10,692,367 9.2% (468,583) 0 $7.25

Source: CoStar Property®

Total Industrial Market Statistics Mid-Year 2011

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries Const SF Rates
Market # Blds Total RBA Direct SF Vac %
9.1% (148,869) 0
Central Broward Ind 1,725 22,023,193 1,946,015 2,011,015 10,000 0 $7.23

Coral Springs Ind 248 7,111,743 536,906 536,906 7.5% 8,034 0 0 $7.75
0
Northeast Broward Ind 528 12,865,318 1,479,945 1,541,717 12.0% 78,736 0 0 $7.17
0
Outlying Broward Ind 5 57,695 8,866 8,866 15.4% 0 0 0 $11.95
0
Pompano Beach Ind 1,430 31,896,379 3,396,524 3,468,448 10.9% (324,864) 10,000 0 $7.23

Southeast Broward Ind 2,014 34,018,202 2,321,851 2,321,851 6.8% 175,247 0 $7.51

Southwest Broward Ind 370 16,739,370 1,751,193 1,898,373 11.3% (224,421) 0 $8.12

West Sunrise Ind 224 9,791,279 880,260 964,360 9.8% (40,059) 0 $9.02
Totals 6,544 134,503,179 12,321,560 12,751,536 9.5% (476,196) 0 $7.54

Source: CoStar Property®

©2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 9

BROWARD COUNTY – MID-YEAR 2011

Broward County Industrial Market

FIGURES AT A GLANCE

Flex Market Statistics Mid-Year 2011

Existing Inventory Vacancy Net Deliveries UC Inventory Quoted

Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates

2011 2q 1,109 18,739,757 1,988,208 2,059,169 11.0% 1,259 0 0 0 0 $9.92
2011 1q 1,109 18,739,757 1,980,847 2,060,428 11.0% (8,872) 0 0 0 0 $10.11
2010 4q 1,109 18,739,757 1,971,975 2,051,556 10.9% 71,089 0 0 0 0 $10.27
2010 3q 1,109 18,739,757 2,043,064 2,122,645 11.3% 61,106 0 0 0 0 $10.09
2010 2q 1,109 18,739,757 2,099,370 2,183,751 11.7% 49,604 0 0 0 0 $10.11
2010 1q 1,109 18,739,757 2,132,724 2,233,355 11.9% 94,545 0 0 0 0 $10.30
1,109 18,739,757 2,229,519 2,327,900 12.4% (573,967) 4 22,000 0 0 $10.40
2009 1,105 18,717,757 1,656,933 1,731,933 (183,273) 2 103,010 3 18,000 $12.18
2008 1,103 18,614,747 1,397,075 1,445,650 9.3% (236,068) 4 189,819 3 107,010 $12.61
2007 1,099 18,424,928 1,019,763 7.8% 445,725 3 96,265 2 125,445 $10.61
2006 1,097 18,404,953 984,283 1,445,513 5.5% 506,589 12 674,856 3 96,265
2005 1,085 17,730,097 1,360,069 1,277,246 7.9% 737,558 18 591,517 10 470,896 $9.59
2004 1,067 17,138,580 1,256,884 1,423,287 7.2% 187,179 8 233,995 11 323,197 $9.90
2003 1,059 16,904,585 1,397,685 1,376,471 8.3% 350,220 12 328,285 11 356,943 $9.94
2002 1,047 16,576,300 1,232,779 1,398,406 8.1% 301,771 14 504,860 10 253,599 $10.45
2001 1,033 16,071,440 1,349,150 1,195,317 8.4% 564,500 21 793,514 14 504,860 $9.56
2000 1,195,317 7.4% $9.75

Source: CoStar Property®

Warehouse Market Statistics Mid-Year 2011

Existing Inventory Vacancy Net Deliveries UC Inventory Quoted

Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates

2011 2q 5,435 115,763,422 10,333,352 10,692,367 9.2% (6,825) 1 10,000 0 0 $7.25
2011 1q 5,434 115,753,422 10,191,982 10,675,542 9.2% (461,758) 0 0 1 10,000 $7.27
2010 4q 5,434 115,753,422 10,213,784 8.8% 350,316 1 1 10,000 $7.35
2010 3q 5,433 115,683,466 9,744,478 10,494,144 9.1% 0 69,956 2 79,956 $7.35
2010 2q 5,433 115,683,466 10,060,572 10,530,556 9.1% 36,412 1 0 2 79,956 $7.47
2010 1q 5,432 115,614,402 10,082,484 10,730,632 9.3% 269,140 1 3 149,020 $7.52
5,431 115,608,345 10,128,028 11,052,553 9.6% 327,978 18 69,064 3 85,121 $7.57
2009 5,414 114,831,333 10,431,337 6.8% (2,468,649) 41 6,057 14 660,724 $8.27
2008 5,373 112,310,211 7,806,892 4.7% 37 36 1,946,011 $8.61
2007 5,337 110,556,746 7,423,207 5,297,117 3.5% 11,347 27 781,512 28 1,705,255 $8.16
2006 5,311 109,345,810 4,827,046 3,861,992 3.0% 318,340 25 2,521,122 25 1,319,600 $7.52
2005 5,286 108,415,295 3,754,804 3,311,647 4.7% 660,591 44 1,768,465 23 955,235 $6.89
2004 5,243 106,250,821 3,254,817 5,063,921 6.9% 2,682,789 34 1,217,936 28 1,309,597 $6.85
2003 5,209 104,533,209 4,861,963 7,284,587 7.4% 4,385,140 40 28 1,747,106 $6.60
2002 5,169 101,812,594 7,153,075 7,715,665 7.0% 2,148,690 48 930,515 38 2,917,057 $6.41
2001 5,121 7,188,848 7,170,362 5.3% 2,175,312 71 2,226,806 48 4,112,760 $6.50
2000 98,171,770 6,599,156 5,182,014 1,652,476 1,717,612
5,002,384 3,335,949 2,720,615
3,640,824
4,560,300

Source: CoStar Property®

Total Industrial Market Statistics Mid-Year 2011

Existing Inventory Vacancy Net Deliveries UC Inventory Quoted

Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates

2011 2q 6,544 134,503,179 12,321,560 12,751,536 9.5% (5,566) 1 10,000 0 0 $7.54
2011 1q 6,543 134,493,179 12,172,829 12,735,970 9.5% (470,630) 0 0 1 10,000 $7.60
2010 4q 6,543 134,493,179 11,716,453 12,265,340 9.1% 421,405 1 1 10,000 $7.71
2010 3q 6,542 134,423,223 12,103,636 12,616,789 9.4% 0 69,956 2 79,956 $7.69
2010 2q 6,542 134,423,223 12,181,854 12,714,307 9.5% 97,518 1 0 2 79,956 $7.81
2010 1q 6,541 134,354,159 12,260,752 12,963,987 9.6% 318,744 1 3 149,020 $7.88
6,540 134,348,102 12,660,856 13,380,453 10.0% 422,523 22 69,064 3 85,121 $7.94
2009 6,519 133,549,090 7.1% (3,042,616) 43 6,057 17 678,724 $8.75
2008 6,476 130,924,958 9,080,140 9,538,825 5.2% (171,926) 41 39 2,053,021 $9.20
2007 6,436 128,981,674 6,224,121 6,742,767 3.8% 30 803,512 30 1,830,700 $8.61
2006 6,408 127,750,763 4,739,087 4,881,755 3.7% 82,272 37 2,624,132 28 1,415,865 $8.00
2005 6,371 126,145,392 4,614,886 4,757,160 5.0% 1,106,316 62 1,958,284 33 1,426,131 $7.50
2004 6,310 123,389,401 6,118,847 6,341,167 7.1% 3,189,378 42 1,314,201 39 1,632,794 $7.41
2003 6,268 121,437,794 8,550,760 8,707,874 7.5% 5,122,698 52 1,605,371 39 2,104,049 $6.85
2002 6,216 118,388,894 8,421,627 9,092,136 7.2% 2,335,869 62 2,818,323 48 3,170,656 $6.63
2001 6,154 114,243,210 7,948,306 8,568,768 5.6% 2,525,532 92 1,951,607 62 4,617,620 $6.78
2000 6,197,701 6,377,331 1,954,247 3,048,900
3,900,449 4,145,684
5,353,814

Source: CoStar Property®

10 THE COSTAR INDUSTRIAL REPORT ©2011 COSTAR GROUP, INC.

MID-YEAR 2011 – BROWARD COUNTY

Broward County Industrial Market

LEASING ACTIVITY

Historical Rental Rates

Based on Quoted Rental Rates

Flex Warehouse Total Market

$12.00

$10.00

Dollars/SF/Year $8.00

$6.00

$4.00

$2.00

$0.00

2009 3q 2009 4q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q

Source: CoStar Property®

Vacancy by Available Space Type Vacancy by Building Type

Percent of All Vacant Space in Direct vs. Sublet Percent of All Vacant Space by Building Type

Broward County United States Broward County United States

3% 3% 16% 15%
97% 97%
84% 85%

Direct Sublet Direct Sublet Flex Warehouse Flex Warehouse

Source: CoStar Property® Source: CoStar Property®

U.S. Rental Rate Comparison Future Space Available

Based on Average Quoted Rental Rates Space Scheduled to be Available for Occupancy*

Broward County United States 0.4 0.4
0.4
$9.00

$8.00

$7.00 0.3

$6.00 0.3
Dollars/SF/Year
Millions$5.000.2

$4.00 0.2

$3.00

$2.00 0.1 0.0
2012 1q
$1.00 0.1 0.0 0.0 0.0 0.0
2011 4q 2012 2q 2012 3q 2012 4q
$0.00 0.0
2009 3q 2009 4q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q

Source: CoStar Property® Source: CoStar Property® * Includes Under Construction Space

©2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 11

BROWARD COUNTY – MID-YEAR 2011

Broward County Industrial Market

LEASING ACTIVITY

Select Top Industrial Leases Based on Leased Square Footage For Deals Signed in 2011

Building Submarket SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company

1 Senaca North - Building M Southeast Broward Ind 66,095 1st Gregg Appliances N/A Cushman & Wakefield, Inc.

2 Port 95 Commerce Park - Building 4 Southeast Broward Ind 65,669 1st Challenge Warehousing Direct Deal The Kelsey Group, Inc.

3 Premier Turnpike Park - Bldg 1 Pompano Beach Ind 56,354 1st Argo Turboserve Corporation N/A Duke Realty

4 Sawgrass I - Bldg B Coral Springs Ind 49,000 2nd Ikea CB Richard Ellis Cushman & Wakefield, Inc.

5 MPC 10 Southwest Broward Ind 48,352 1st Wal-Mart N/A Transwestern

6 2022 W Atlantic Blvd Pompano Beach Ind 43,093 2nd Hurok Marble Brenner Real Estate Group Duke Realty

7 MPC 4B Southwest Broward Ind 40,785 1st Neoptx, LLC Direct Deal Sunbeam Properties, Inc.

8 Port 95 Distribution Ctr - Bldg 200 Southeast Broward Ind 39,000 2nd Brain Pharma LLC Montalbano Commercial Realty Inc. NAIRauchWeaverNorfleetKurtz&C

9 PompanoCenterofCommerce-Building5 Pompano Beach Ind 38,000 2nd N/A N/A Jones Lang LaSalle

10 1500 SW 5th Ct Pompano Beach Ind 35,114 2nd N/A N/A Liberty Property Trust

11 Copans Bldg 1 Pompano Beach Ind 34,000 2nd Florida Air Conditioning Realatrends Cushman & Wakefield, Inc.

12 Sample 95 Business Park - Bldg 4 Pompano Beach Ind 27,450 1st USXLP, Inc Direct Deal Duke Realty

13 MPC 23B Southwest Broward Ind 25,658 2nd Doctor Diabetic Supply12 Newmark Knight Frank Sunbeam Properties, Inc.

14 Senaca North - Building M Southeast Broward Ind 25,400 1st Gemaire Distributors N/A Cushman & Wakefield, Inc.

15 Center Port #100 Pompano Beach Ind 25,321 1st N/A N/A Cushman & Wakefield, Inc.

16 Weston Business Center - Building D Southwest Broward Ind 24,104 2nd N/A N/A CB Richard Ellis

17 Quiet Waters Business Pk - Bldg 2 Northeast Broward Ind 24,000 1st Prestige Auto Cushman & Wakefield, Inc. CB Richard Ellis

18 2500 Commerce Center Pompano Beach Ind 22,512 2nd Dex’s Imaging Studley Cushman & Wakefield, Inc.

19 Copans #4* Pompano Beach Ind 21,703 2nd Badcock Home Furniture &more Direct Deal Duke Realty

20 Copans #4 Pompano Beach Ind 21,703 2nd N/A N/A Duke Realty

21 Center Port #300 Pompano Beach Ind 21,420 1st N/A N/A Cushman & Wakefield, Inc.

22 1280 S Powerline Rd Northeast Broward Ind 20,000 2nd Interior Office Solutions Total Real Estate Consultants Inc Cushman & Wakefield, Inc.

23 Sawgrass Distribution Center I West Sunrise Ind 20,000 2nd Johnstone Supply ComNet Realty Inc. Stiles Realty Company

24 Sawgrass I - Bldg B Coral Springs Ind 19,547 2nd Agrium Jones Lang LaSalle Cushman & Wakefield, Inc.

25 3580 W Prospect Rd* Central Broward Ind 18,884 1st Global Response Direct Deal 777 Properties, Inc.

26 MPC 2A Southwest Broward Ind 17,432 2nd OPKO Health, Inc. Direct Deal Sunbeam Properties, Inc.

27 Pompano Merchandise Mart Phase II Pompano Beach Ind 17,236 1st N/A N/A Sawgrass Commerce Realty Inc

28 3355 Enterprise Ave Southwest Broward Ind 16,650 2nd Greenfield World Trade Morris Southeast Group, Inc ComReal Fort Lauderdale

29 3420 NW 53rd St* Central Broward Ind 15,920 1st ALL MOVING SERVICES, Inc. Direct Deal Berger Commercial Realty Corp.

30 Broward Int’l Comm Center - 100 Southeast Broward Ind 15,600 1st Eco Marine ComReal Fort Lauderdale Cushman & Wakefield, Inc.

31 International Warehouses - Bldg 3 Central Broward Ind 15,020 1st Broward Health N/A Sperry Van Ness Commercial Realty

32 MPC 26A Southwest Broward Ind 14,017 1st Jpay, Inc. ComReal Fort Lauderdale Sunbeam Properties, Inc.

33 11221 Interchange Cir S Southwest Broward Ind 12,150 2nd Genuine Part Source Direct Deal Montalbano Commercial Realty

34 Broward Int’l Comm Center - 100 Southeast Broward Ind 12,133 1st JWS Intimates ComReal Fort Lauderdale Cushman & Wakefield, Inc.

35 Kelsey Business Center - Bldg 1b Southeast Broward Ind 11,520 1st Aldany, Inc Direct Deal The Kelsey Group, Inc.

36 11221 Interchange Cir S Southwest Broward Ind 11,000 2nd N/A Direct Deal Montalbano Commercial Realty

37 Lauderhill Industrial Park - Bldg 2 Central Broward Ind 10,710 2nd N/A N/A Levy Realty Advisors, Inc.

38 Quiet Waters Business Pk - Bldg 6 Northeast Broward Ind 10,680 1st It’s Sugar N/A CB Richard Ellis

39 Miramar Park of Commerce - MPC Southwest Broward Ind 10,260 2nd Surpass Medical Prudential Florida Realty Sunbeam Properties, Inc.

40 International Warehouses - Bldg 2 Central Broward Ind 10,007 1st Militello’s Italian Bakery N/A Sperry Van Ness Commercial Realty

Source: CoStar Property®

* Renewal

12 THE COSTAR INDUSTRIAL REPORT ©2011 COSTAR GROUP, INC.

MID-YEAR 2011 – BROWARD COUNTY

Broward County Industrial Market

SALES ACTIVITY

The Optimist Sales Index Average of Two Highest Price/SF's and Two Lowest Cap Rates Per Quarter

Cap Rate Price/SF

12.0% $180
$160
10.0% $140
$120
Cap Rate Percentage 8.0% $100
$80
6.0% Dollars/SF$60
Price/SF $40
4.0% $20
$0
2.0%

0.0%

2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q

Source: CoStar COMPS®

Sales Volume & Price Sales Analysis by Building Size

Based on Industrial Building Sales of 15,000 SF and Larger Based on Industrial Bldg Sales From April 2010 - March 2011

Sales Volume Price/SF Bldg Size # RBA $ Volume Price/SF Cap Rate

$120 $120

$100 $100 < 25,000 SF 51 579,387 $ 49,537,255 $ 85.50 8.06%

Millions of Sales Volume Dollars $80 $80

25K-99K SF 23 959,527 $ 78,865,434 $ 82.19 7.80%

$60 $60

$40 $40 100K-249K SF 5 634,805 $ 30,065,000 $ 47.36 9.53%

$20 $20

$0 $0 >250K SF 2 1,088,768 $ 96,000,000 $ 88.17 7.60%
2008 1q 2008 3q 2009 1q 2009 3q 2010 1q 2010 3q 2011 1q
Source: CoStar COMPS®
Source: CoStar COMPS®

U.S. Price/SF Comparison U.S. Cap Rate Comparison

Based on Industrial Building Sales of 15,000 SF and Larger Based on Industrial Building Sales of 15,000 SF and Larger

Broward County US 12.0% Broward County US

$120

$100 10.0%

Dollars per SF $80 Cap Rate Percentage 8.0%

$60 6.0%

$40 4.0%

$20 2.0%

$0 0.0%
2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011
1q 2q 3q 4q 1q 2q 3q 4q 1q 2q 3q 4q 1q 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011
1q 2q 3q 4q 1q 2q 3q 4q 1q 2q 3q 4q 1q
Source: CoStar COMPS®
Source: CoStar COMPS®

©2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 13

BROWARD COUNTY – MID-YEAR 2011

Broward County Industrial Market

SALES ACTIVITY

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��������������������� THE COSTAR INDUSTRIAL REPORT ©2011 COSTAR GROUP, INC.

14

MID-YEAR 2011 – BROWARD COUNTY

Broward County Industrial Market

SALES ACTIVITY

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Select Land Sales Based on Industrial Zoned Land Sales Occurring From April 2010 - June 2011

1675 Banks Rd, Margate 6700 NW 15th Ave, Fort Lauderdale

Sale Price: $540,000 Sale Price: $500,000
Acres: 2.00
Price/SF: 1.57 Acres: $5.74
Closing Date: 05/07/2010
Zoning: $7.91 Price/SF: I
Intended Use: Industrial Park
Buyer: 05/19/2010 Closing Date: Commercial Printers, Inc.
Seller: Cinco Holding Group LLC
M-1A Zoning:

Hold for Development Intended Use:

Margate Community Redevelopment AgenBuyer:

Terrell Duke Seller:

Source: CoStar COMPS® THE COSTAR INDUSTRIAL REPORT 15
©2011 COSTAR GROUP, INC.

BROWARD COUNTY – MID-YEAR 2011

Broward County Industrial Market
CENTRAL BROWARD MARKET
MARKET HIGHLIGHTS - FLEX & WAREHOUSE

Deliveries, Absorption & Vacancy Historical Analysis, Flex and Warehouse

Millions SF 0.200 Delivered SF Absorption SF Vacancy 10.0% Percent Vacant
0.100 2008 3q 2008 4q 2009 3q 2009 4q 2010 1q 2010 4q 2011 1q 9.0%
0.000 8.0%
(0.100) 7.0%
(0.200) 6.0%
(0.300) 5.0%
(0.400) 4.0%
3.0%
2.0%
1.0%
0.0%

2008 1q 2008 2q 2009 1q 2009 2q 2010 2q 2010 3q 2011 2q

Source: CoStar Property®

Vacant Space Quoted Rental Rates

Historical Analysis, Flex and Warehouse Historical Analysis, Flex and Warehouse

2.05 Direct SF Sublet SF $7.40
$7.35
2.00 $7.30
$7.25
1.95 $7.20
$7.15
1.90 Dollars/SF/Year $7.10
$7.05
Millions SF 1.85 $7.00
$6.95
1.80

1.75

1.70

1.65

1.60

1.55 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q
2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted
Absorption Rates
Period # Bldgs Total RBA Vacant SF Vacancy % # Bldgs Total RBA # Bldgs Total RBA $7.23
2011 2q (1,789) $7.10
2011 1q 1,725 22,023,193 2,011,015 9.1% (147,080) 00 00 $7.13
2010 4q $7.16
2010 3q 1,725 22,023,193 2,009,226 9.1% 60,556 00 00 $7.26
2010 2q 54,695 $7.35
2010 1q 1,725 22,023,193 1,862,146 8.5% 11,769 00 00 $7.28
2009 4q 13,352 $8.07
2009 3q 1,725 22,023,193 1,922,702 8.7% (113,997) 00 00 $8.10
2009 2q (33,685) $8.33
2009 1q 1,725 22,023,193 1,977,397 9.0% (44,248) 00 00 $8.63
2008 4q (329,214) $8.81
2008 3q 1,725 22,023,193 1,989,166 9.0% (239,328) 00 00 $8.71
2008 2q 53,842 $8.40
2008 1q 1,725 22,023,193 2,002,518 9.1% 130,663 1 4,000 00 $8.82
2007 4q (245,114) $8.89
2007 3q 1,724 22,019,193 1,884,521 8.6% (78,545) 1 4,000 1 4,000
(32,680)
1,723 22,015,193 1,846,836 8.4% 00 2 8,000

1,723 22,015,193 1,802,588 8.2% 1 4,000 2 8,000

1,722 22,011,193 1,469,374 6.7% 00 2 8,000

1,722 22,011,193 1,230,046 5.6% 00 2 8,000

1,722 22,011,193 1,283,888 5.8% 1 89,950 2 8,000

1,721 21,921,243 1,324,601 6.0% 00 3 97,950

1,721 21,921,243 1,079,487 4.9% 00 2 93,950

1,721 21,921,243 1,000,942 4.6% 00 1 89,950

Source: CoStar Property®

16 THE COSTAR INDUSTRIAL REPORT ©2011 COSTAR GROUP, INC.

MID-YEAR 2011 – BROWARD COUNTY

Broward County Industrial Market
CORAL SPRINGS MARKET
MARKET HIGHLIGHTS - FLEX & WAREHOUSE

Deliveries, Absorption & Vacancy Historical Analysis, Flex and Warehouse

0.250 Delivered SF Absorption SF Vacancy 14.0%

Millions SF 0.200 12.0% Percent Vacant
0.150 10.0%
0.100 8.0%
0.050 6.0%
0.000 4.0%
(0.050) 2.0%
(0.100)

(0.150) 0.0%

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q

Source: CoStar Property®

Vacant Space Quoted Rental Rates

Historical Analysis, Flex and Warehouse Historical Analysis, Flex and Warehouse

0.80 Direct SF Sublet SF $9.50
0.70 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q
0.60 $9.00
0.50
Millions SF 0.40 Dollars/SF/Year $8.50
0.30
0.20 $8.00
0.10
0.00 $7.50

$7.00

2010 1q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted
Absorption Rates
Period # Bldgs Total RBA Vacant SF Vacancy % # Bldgs Total RBA # Bldgs Total RBA $7.75
2011 2q 38,126 $7.69
2011 1q 248 7,111,743 536,906 7.5% (30,092) 1 10,000 00 $8.33
2010 4q 122,624 $8.58
2010 3q 247 7,101,743 565,032 8.0% 14,773 00 1 10,000 $8.99
2010 2q 86,740 $8.53
2010 1q 247 7,101,743 534,940 7.5% 45,124 00 1 10,000 $8.81
2009 4q 26,883 $9.03
2009 3q 247 7,101,743 657,564 9.3% 00 1 10,000 $9.76
2009 2q (8,676) $9.85
2009 1q 247 7,101,743 672,337 9.5% (47,400) 00 1 10,000 $9.96
2008 4q (54,786) $9.90
2008 3q 247 7,101,743 759,077 10.7% (14,405) 00 1 10,000 $9.89
2008 2q (31,194) $10.54
2008 1q 247 7,101,743 804,201 11.3% (95,940) 00 1 10,000 $10.46
2007 4q 57,429 $10.27
2007 3q 247 7,101,743 831,084 11.7% 63,262 00 1 10,000
25,276
247 7,101,743 822,408 11.6% 2 199,510 1 10,000

245 6,902,233 575,498 8.3% 00 3 209,510

245 6,902,233 520,712 7.5% 00 2 199,510

245 6,902,233 506,307 7.3% 00 2 199,510

245 6,902,233 475,113 6.9% 00 2 199,510

245 6,902,233 379,173 5.5% 3 47,614 1 99,755

242 6,854,619 388,988 5.7% 6 138,030 3 47,614

236 6,716,589 314,220 4.7% 1 37,000 8 176,144

Source: CoStar Property®

©2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 17

BROWARD COUNTY – MID-YEAR 2011

Broward County Industrial Market
NORTHEAST BROWARD MARKET
MARKET HIGHLIGHTS - FLEX & WAREHOUSE

Deliveries, Absorption & Vacancy Historical Analysis, Flex and Warehouse

0.300 Delivered SF Absorption SF Vacancy 14.0%

0.200 12.0%

0.100 10.0%

Millions SF 0.000 8.0% Percent Vacant

(0.100) 6.0%

(0.200) 4.0%

(0.300) 2.0%

(0.400) 0.0%

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q

Source: CoStar Property®

Vacant Space Quoted Rental Rates

Historical Analysis, Flex and Warehouse Historical Analysis, Flex and Warehouse

1.65 Direct SF Sublet SF $8.40
$8.20
1.60 $8.00
$7.80
Millions SF 1.55 Dollars/SF/Year $7.60
$7.40
1.50 $7.20
$7.00
1.45 $6.80
$6.60
1.40

1.35 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q
2010 1q
Source: CoStar Property®
Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted
Absorption Rates
Period # Bldgs Total RBA Vacant SF Vacancy % # Bldgs Total RBA # Bldgs Total RBA $7.17
2011 2q 62,294 $7.20
2011 1q 528 12,865,318 1,541,717 12.0% 16,442 00 00 $7.23
2010 4q (88,911) $7.52
2010 3q 528 12,865,318 1,604,011 12.5% 12,158 00 00 $8.17
2010 2q (5,343) $8.01
2010 1q 528 12,865,318 1,620,453 12.6% (90,232) 00 00 $7.97
2009 4q (9,735) $8.35
2009 3q 528 12,865,318 1,531,542 11.9% (237,292) 00 00 $8.51
2009 2q (38,661) $8.52
2009 1q 528 12,865,318 1,543,700 12.0% (364,119) 00 00 $8.80
2008 4q 35,136 $8.81
2008 3q 528 12,865,318 1,538,357 12.0% 83,014 00 00 $8.98
2008 2q (74,493) $8.91
2008 1q 528 12,865,318 1,448,125 11.3% (73,506) 00 00 $8.84
2007 4q (74,655) $9.04
2007 3q 528 12,865,318 1,438,390 11.2% 160,662 00 00

528 12,865,318 1,201,098 9.3% 1 12,134 00

527 12,853,184 1,150,303 8.9% 00 1 12,134

527 12,853,184 786,184 6.1% 00 1 12,134

527 12,853,184 821,320 6.4% 2 244,000 00

525 12,609,184 660,334 5.2% 00 2 244,000

525 12,609,184 585,841 4.6% 2 23,140 2 244,000

523 12,586,044 489,195 3.9% 2 70,822 2 23,140

521 12,515,222 343,718 2.7% 1 52,860 4 93,962

Source: CoStar Property®

18 THE COSTAR INDUSTRIAL REPORT ©2011 COSTAR GROUP, INC.

MID-YEAR 2011 – BROWARD COUNTY

Broward County Industrial Market
O U T LY I N G B R O WA R D M A R K E T
MARKET HIGHLIGHTS - FLEX & WAREHOUSE

Deliveries, Absorption & Vacancy Historical Analysis, Flex and Warehouse

0.008 Delivered SF Absorption SF Vacancy 30.0%
2008 3q 2008 4q 2009 3q 2009 4q 2010 1q 2010 4q 2011 1q 25.0%
0.006 20.0%
15.0%
0.004 10.0%
5.0%
Millions SF 0.002 0.0% Percent Vacant

0.000

(0.002)

(0.004)

(0.006)

(0.008)

(0.010)

2008 1q 2008 2q 2009 1q 2009 2q 2010 2q 2010 3q 2011 2q

Source: CoStar Property®

Vacant Space Quoted Rental Rates

Historical Analysis, Flex and Warehouse Historical Analysis, Flex and Warehouse

Millions SF 0.02 Direct SF Sublet SF Dollars/SF/Year $18.00
0.01 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q $16.00
0.01 $14.00
0.01 $12.00
0.01 $10.00
0.01
0.00 $8.00
0.00 $6.00
0.00 $4.00
$2.00
$0.00

2010 1q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted
Absorption Rates
Period # Bldgs Total RBA Vacant SF Vacancy % # Bldgs Total RBA # Bldgs Total RBA $11.95
2011 2q 0 $11.95
2011 1q 5 57,695 8,866 15.4% 0 00 00 $11.95
2010 4q 0 $11.95
2010 3q 5 57,695 8,866 15.4% 0 00 00 $11.95
2010 2q 5,468 $15.95
2010 1q 5 57,695 8,866 15.4% (2,734) 00 00 $13.50
2009 4q (8,866) $13.50
2009 3q 5 57,695 8,866 15.4% 5,380 00 00 $14.29
2009 2q (5,380) $14.95
2009 1q 5 57,695 8,866 15.4% 2,377 00 00 $16.51
2008 4q 359 $16.95
2008 3q 5 57,695 14,334 24.8% 0 00 00 $16.95
2008 2q (2,736) $16.95
2008 1q 5 57,695 11,600 20.1% 0 00 00 $16.95
2007 4q 0 $0.00
2007 3q 5 57,695 2,734 4.7% 0 00 00

5 57,695 8,114 14.1% 00 00

5 57,695 2,734 4.7% 00 00

5 57,695 5,111 8.9% 00 00

5 57,695 5,470 9.5% 00 00

5 57,695 5,470 9.5% 00 00

5 57,695 2,734 4.7% 00 00

5 57,695 2,734 4.7% 00 00

5 57,695 2,734 4.7% 00 00

Source: CoStar Property®

©2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 19

BROWARD COUNTY – MID-YEAR 2011

Broward County Industrial Market
POMPANO BEACH MARKET
MARKET HIGHLIGHTS - FLEX & WAREHOUSE

Deliveries, Absorption & Vacancy Historical Analysis, Flex and Warehouse

0.400 Delivered SF Absorption SF Vacancy 14.0%

Millions SF 0.200 12.0% Percent Vacant
0.000 10.0%
(0.200) 8.0%
(0.400) 6.0%
(0.600) 4.0%
2.0%

(0.800) 0.0%

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q

Source: CoStar Property®

Vacant Space Quoted Rental Rates

Historical Analysis, Flex and Warehouse Historical Analysis, Flex and Warehouse

3.60 Direct SF Sublet SF $7.45

3.50 $7.40

3.40 $7.35

Millions SF 3.30 Dollars/SF/Year $7.30

3.20 $7.25

3.10

3.00 $7.20

2.90 $7.15

2.80 $7.10
2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q
2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted
Absorption Rates
Period # Bldgs Total RBA Vacant SF Vacancy % # Bldgs Total RBA # Bldgs Total RBA $7.23
2011 2q 25,083 $7.34
2011 1q 1,430 31,896,379 3,468,448 10.9% (349,947) 00 00 $7.22
2010 4q 283,314 $7.21
2010 3q 1,430 31,896,379 3,493,531 11.0% 00 00 $7.30
2010 2q 44,323 $7.41
2010 1q 1,430 31,896,379 3,143,584 9.9% 84,808 00 00 $7.57
2009 4q 102,621 $7.71
2009 3q 1,430 31,896,379 3,426,898 10.7% 00 00 $7.91
2009 2q 4,584 $8.31
2009 1q 1,430 31,896,379 3,471,221 10.9% (160,150) 00 00 $8.58
2008 4q (646,399) $8.77
2008 3q 1,430 31,896,379 3,556,029 11.1% 00 00 $9.10
2008 2q 86,925 $8.83
2008 1q 1,430 31,896,379 3,658,650 11.5% (439,816) 00 00 $9.00
2007 4q $9.76
2007 3q 1,430 31,896,379 3,663,234 11.5% 60,907 5 273,282 00
6,238
1,425 31,623,097 3,229,802 10.2% 00 5 273,282
(202,421)
1,425 31,623,097 2,583,403 8.2% (107,272) 1 13,489 5 273,282

1,424 31,609,608 2,656,839 8.4% (93,700) 3 245,076 6 286,771

1,421 31,364,532 1,971,947 6.3% 2 75,177 7 306,471

1,419 31,289,355 1,957,677 6.3% 5 226,746 8 368,159

1,414 31,062,609 1,737,169 5.6% 1 123,062 13 594,905

1,413 30,939,547 1,411,686 4.6% 1 202,762 10 417,714

1,412 30,736,785 1,101,652 3.6% 00 10 600,476

Source: CoStar Property®

20 THE COSTAR INDUSTRIAL REPORT ©2011 COSTAR GROUP, INC.

MID-YEAR 2011 – BROWARD COUNTY

Broward County Industrial Market
SOUTHEAST BROWARD MARKET
MARKET HIGHLIGHTS - FLEX & WAREHOUSE

Deliveries, Absorption & Vacancy Historical Analysis, Flex and Warehouse

Millions SF 0.600 Delivered SF Absorption SF Vacancy 8.0% Percent Vacant
0.500 2008 3q 2008 4q 2009 3q 2009 4q 2010 1q 2010 4q 2011 1q 7.0%
0.400 6.0%
0.300 5.0%
0.200 4.0%
0.100 3.0%
0.000 2.0%
(0.100) 1.0%
(0.200) 0.0%
(0.300)
(0.400)

2008 1q 2008 2q 2009 1q 2009 2q 2010 2q 2010 3q 2011 2q

Source: CoStar Property®

Vacant Space Quoted Rental Rates

Historical Analysis, Flex and Warehouse Historical Analysis, Flex and Warehouse

Millions SF 2.55 Direct SF Sublet SF Dollars/SF/Year $8.10
2.50 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q $8.00
2.45 $7.90
2.40 $7.80
2.35 $7.70
2.30 $7.60
2.25 $7.50
2.20 $7.40
2.15 $7.30
$7.20

2010 1q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted
Absorption Rates
Period # Bldgs Total RBA Vacant SF Vacancy % # Bldgs Total RBA # Bldgs Total RBA $7.51
2011 2q 35,826 $7.62
2011 1q 2,014 34,018,202 2,321,851 6.8% 139,421 00 00 $7.97
2010 4q (176,013) $7.75
2010 3q 2,014 34,018,202 2,357,677 6.9% 00 00 $7.76
2010 2q 42,601 $7.83
2010 1q 2,014 34,018,202 2,497,098 7.3% 56,428 00 00 $7.88
2009 4q 200,040 $8.41
2009 3q 2,014 34,018,202 2,321,085 6.8% (208,824) 00 00 $8.46
2009 2q (283,804) $8.96
2009 1q 2,014 34,018,202 2,363,686 6.9% (55,057) 1 69,064 00 $8.75
2008 4q (235,024) $9.27
2008 3q 2,013 33,949,138 2,351,050 6.9% (143,245) 1 6,057 1 69,064 $9.34
2008 2q (210,688) $9.95
2008 1q 2,012 33,943,081 2,545,033 7.5% 226,017 2 34,800 2 75,121 $10.72
2007 4q 217,689 $10.05
2007 3q 2,010 33,908,281 2,301,409 6.8% (30,067) 1 25,200 4 109,921
(30,272)
2,009 33,883,081 1,992,405 5.9% 1 17,200 5 135,121

2,008 33,865,881 1,920,148 5.7% 2 33,666 3 52,000

2,007 33,836,715 1,655,958 4.9% 00 4 76,066

2,007 33,836,715 1,512,713 4.5% 00 2 33,666

2,007 33,836,715 1,302,025 3.8% 3 470,058 2 33,666

2,004 33,366,657 1,057,984 3.2% 5 174,008 5 503,724

1,999 33,192,649 1,101,665 3.3% 1 36,349 9 663,732

1,998 33,156,300 1,035,249 3.1% 1 1,548 9 660,081

Source: CoStar Property®

©2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 21

BROWARD COUNTY – MID-YEAR 2011

Broward County Industrial Market
SOUTHWEST BROWARD MARKET
MARKET HIGHLIGHTS - FLEX & WAREHOUSE

Deliveries, Absorption & Vacancy Historical Analysis, Flex and Warehouse

0.800 Delivered SF Absorption SF Vacancy 14.0%

Millions SF 0.600 12.0% Percent Vacant
0.400 10.0%
0.200 8.0%
0.000 6.0%
(0.200) 4.0%
2.0%

(0.400) 0.0%

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q

Source: CoStar Property®

Vacant Space Sublet SF Quoted Rental Rates

Historical Analysis, Flex and Warehouse Historical Analysis, Flex and Warehouse

2.50 Direct SF $8.50

2.00 $8.40

Millions SF 1.50 $8.30Dollars/SF/Year

1.00 $8.20

0.50 $8.10

$8.00

0.00 $7.90
2010 1q
2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q
Source: CoStar Property®
Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted
Absorption Rates
Period # Bldgs Total RBA Vacant SF Vacancy % # Bldgs Total RBA # Bldgs Total RBA $8.12
2011 2q (146,993) $8.08
2011 1q 370 16,739,370 1,898,373 11.3% (77,428) 00 00 $8.33
2010 4q 168,245 $8.29
2010 3q 370 16,739,370 1,751,380 10.5% 43,967 00 00 $8.38
2010 2q 91,957 $8.41
2010 1q 370 16,739,370 1,673,952 10.0% 236,909 1 69,956 00 $8.44
2009 4q (89,429) $8.42
2009 3q 369 16,669,414 1,772,241 10.6% 00 1 69,956 $8.38
2009 2q (300,424) $8.48
2009 1q 369 16,669,414 1,816,208 10.9% (161,650) 00 1 69,956 $8.19
2008 4q 246,046 $8.45
2008 3q 369 16,669,414 1,908,165 11.4% (243,086) 00 1 69,956 $7.94
2008 2q 344,139 $8.45
2008 1q 369 16,669,414 2,145,074 12.9% 682,030 00 00 $8.26
2007 4q $8.78
2007 3q 369 16,669,414 2,055,645 12.3% 39,831 00 00
284,262
369 16,669,414 1,755,221 10.5% 121,676 2 96,243 00

367 16,573,171 1,497,328 9.0% 00 2 96,243

367 16,573,171 1,743,374 10.5% 2 71,004 2 96,243

365 16,502,167 1,429,284 8.7% 9 313,410 3 157,247

356 16,188,757 1,460,013 9.0% 2 205,364 11 384,414

354 15,983,393 1,936,679 12.1% 3 315,523 13 589,778

351 15,667,870 1,660,987 10.6% 3 116,352 13 806,871

348 15,551,518 1,828,897 11.8% 4 500,593 7 398,849

Source: CoStar Property®

22 THE COSTAR INDUSTRIAL REPORT ©2011 COSTAR GROUP, INC.

MID-YEAR 2011 – BROWARD COUNTY

Broward County Industrial Market
WEST SUNRISE MARKET
MARKET HIGHLIGHTS - FLEX & WAREHOUSE

Deliveries, Absorption & Vacancy Historical Analysis, Flex and Warehouse

Millions SF 0.250 Delivered SF Absorption SF Vacancy 12.0% Percent Vacant
0.200 2008 3q 2008 4q 2009 3q 2009 4q 2010 1q 2010 4q 2011 1q 10.0%
0.150 8.0%
0.100 6.0%
0.050 4.0%
0.000 2.0%
(0.050) 0.0%
(0.100)
(0.150)
(0.200)
(0.250)
(0.300)

2008 1q 2008 2q 2009 1q 2009 2q 2010 2q 2010 3q 2011 2q

Source: CoStar Property®

Vacant Space Quoted Rental Rates

Historical Analysis, Flex and Warehouse Historical Analysis, Flex and Warehouse

1.20 Direct SF Sublet SF $9.70
$9.60
1.00 $9.50
$9.40
Millions SF 0.80 Dollars/SF/Year $9.30
$9.20
0.60 $9.10
$9.00
0.40 $8.90
$8.80
0.20 $8.70

0.00

2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted
Absorption Rates
Period # Bldgs Total RBA Vacant SF Vacancy % # Bldgs Total RBA # Bldgs Total RBA $9.02
2011 2q (18,113) $9.28
2011 1q 224 9,791,279 964,360 9.8% (21,946) 00 00 $9.37
2010 4q 51,590 $9.25
2010 3q 224 9,791,279 946,247 9.7% (114,999) 00 00 $9.17
2010 2q (13,083) $9.58
2010 1q 224 9,791,279 924,301 9.4% (82,557) 00 00 $9.49
2009 4q 53,591 $9.66
2009 3q 224 9,791,279 975,891 10.0% 38,960 00 00 $10.12
2009 2q 178,878 $10.55
2009 1q 224 9,791,279 860,892 8.8% (249,420) 00 00 $11.21
2008 4q (106,988) $11.12
2008 3q 224 9,791,279 847,809 8.7% (93,617) 00 00 $11.12
2008 2q (44,733) $10.56
2008 1q 224 9,791,279 765,252 7.8% 152,090 00 00 $9.83
2007 4q (98,269) $9.84
2007 3q 224 9,791,279 818,843 8.4% 95,009 2 85,988 00

222 9,705,291 771,815 8.0% 00 2 85,988

222 9,705,291 950,693 9.8% 00 2 85,988

222 9,705,291 701,273 7.2% 00 00

222 9,705,291 594,285 6.1% 00 00

222 9,705,291 500,668 5.2% 00 00

222 9,705,291 455,935 4.7% 00 00

222 9,705,291 608,025 6.3% 00 00

222 9,705,291 509,756 5.3% 1 30,000 00

Source: CoStar Property®

©2011 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 23