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2Q2016 3Q2016 4Q2016 1Q2017 2Q2017
0M
1M
2M
3M
4M
TotalQuarterlyAbsorpon
0.0%
1.0%
2.0%
3.0%
4.0%
AbsorponandVacancyRate
Inventory(sf)
#ofBldgs
QrtlyAbs(sf)
TotalAvailRate
TotalVacancyRate
U/CInventory(sf)
Delivered(sf)
WeightedAverageAskingRate(NNN) $0.48
3,044,925
0
3.6%
5.4%
4,174,068
6,303
509,079,471
MarketRecap
AccordingtotheBureauofLaborStascs,theCalifornia
unemploymentratedropped0.7percentagepointsfrom5.5%
inApril2016to4.8%inApril2017.Unemploymentrateforthe
USwasreportedat4.4%downfrom5.0%overthesame me
period.TheRiverside-SanBernardino-Ontariometropolitan
stascalareajobcreaonincreased3%fromtheprevious
year.Industrialusingjobs(industriesincludemanufacturing,
construcon,tradetransportaonandulies)increasedby
21,500jobsfromApril2016toApril2017.
EconomicOverview
TheInlandEmpireindustrialmarketrecorded4,174,068sfof
posivenetabsorponduring2Q2017.Absorponwasup
from2.3msfrecordedduring1Q2017.Thetotalvacancyrate
hasdecreasedfrom3.9%in1Q2017to3.6%atthecloseof2Q
2017.Totalavailabilityratedecreased0.6percentagepoints
from6%to5.4%duringthesame meperiod.Weighted
averageaskingratesdecreased$0.04NNNoverthesecond
quarterwiththemajorityofnewerbuildingsbeingmarketed
withoutanaskingrate.Construconacvityincreasedby4
msffrom1Q2017mostlyduetotheheavyrainfallSouthern
Californiareceivedintheearlymonthsof2017,se ngmany
projectsback3to6months.
MarketOverview
TheInlandEmpireremainsonetheho estindustrialmarkets
inthecountrywithanotherquarterofnetabsorponinthe
millionsand27msfcurrentlyunderconstrucon.3msfwas
delivered2Q2017andanother12msfisexpectedtodeliverin
3Q2017.TheI.E.Westsubmarketrecordedthemajorityofnet
absorponwith2.3msf,loweringthevacancyrateto1.9%.As
thecoastalmarketsconnuetostrugglewithalackofClassA
inventoryandeCommercedemandconnuestogrow,
tenantswillconnuetolooktowardtheI.E.forbrandnew
StateOfTheArtdistribuonfacilies.
MarketHighlights
2Q2017|InlandEmpire|Industrial
February2015
April2015
June2015
August2015
October2015
December2015
February2016
April2016
June2016
August2016
October2016
December2016
February2017
April2017
0
500
1000
1500
0.0%
2.0%
4.0%
6.0%
InlandEmpireEmployment
Source:BLS
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2Q2017MarketTrends©2017byXceligent,Inc.AllRightsReserved. BUILDINGDATA.EVERYWHERE.----------------------------
QrtlyAbs(sf) TotalVacancyRate
27,667,766
2Q2017MarketTrends©2017byXceligent,Inc.AllRightsReserved. BUILDINGDATA.EVERYWHERE.
MarketName SpecificUse Inventory(sf) Avail(sf) Vacant(sf) VacancyRate QrtlyAbs(sf) YTDNetAbs(sf)
East Flex
Whse/Dist
Subtotal
West Flex
Whse/Dist
Subtotal
Overall
3,689,095
3,669,759
19,336
1,813,980
1,810,428
3,552
5.9%
6.1%
0.8%
13,052,581
12,982,184
70,397
17,035,562
16,875,697
159,865
222,607,631
213,656,482
8,951,149
2,887,496
2,894,482
-6,986
2,360,088
2,339,099
20,989
1.9%
1.9%
1.0%
5,339,985
5,261,149
78,836
10,484,319
10,287,129
197,190
286,471,840
278,703,450
7,768,390
6,576,5914,174,0683.6%18,392,56627,519,881509,079,471
OverviewbyMarket(Total)
SpecificUse Inventory(sf) Avail(sf) Vacant(sf) VacancyRate QrtlyAbs(sf) YTDNetAbs(sf)
Flex
Whse/Dist
Overall 6,576,591
6,564,241
12,350
4,174,068
4,149,527
24,541
3.6%
3.7%
0.9%
18,392,566
18,243,333
149,233
27,519,881
27,162,826
357,055
509,079,471
492,359,932
16,719,539
OverviewbySpecificUse(Total)
2Q2017|InlandEmpire|Industrial
2Q2016 3Q2016 4Q2016 1Q2017 2Q2017
0M
10M
20M
30M
TotalAvailableandVacant
27,667,766
ConstruconbyMarket
1
2
2Q2017MarketTrends©2017byXceligent,Inc.AllRightsReserved. BUILDINGDATA.EVERYWHERE.
SpecificUse Inventory(sf) Avail(sf) Vacant(sf) VacancyRate QtrlyAbs(sf) YTDNetAbs(sf)
Flex
Whse/Dist
Overall 6,535,774
6,521,476
14,298
4,247,958
4,221,469
26,489
3.6%
3.6%
0.9%
18,080,662
17,933,377
147,285
25,317,012
24,965,553
351,459
509,079,471
492,359,932
16,719,539
OverviewbySpecificUse(Direct)
SpecificUse Inventory(sf) Avail(sf) Vacant(sf) VacancyRate QrtlyAbs(sf) YTDNetAbs(sf)
Flex
Whse/Dist
Overall 40,817
42,765
-1,948
-73,890
-71,942
-1,948
0.1%
0.1%
0.0%
311,904
309,956
1,948
2,202,869
2,197,273
5,596
509,079,471
492,359,932
16,719,539
OverviewbySpecificUse(Sublease)
2Q2016 3Q2016 4Q2016 1Q2017 2Q2017
0.0%
1.0%
2.0%
3.0%
4.0%
Vacancy%
VacancyRate
2Q2017|InlandEmpire|Industrial
Avail(sf) Vacant(sf)
Total Direct Sublease
West
East
2Q2017MarketTrends©2017byXceligent,Inc.AllRightsReserved. BUILDINGDATA.EVERYWHERE.
MarketName SpecificUse
QuarterYear
2Q2016 3Q2016 4Q2016 1Q2017 2Q2017
East Flex
Whse/Dist
West Flex
Whse/Dist
Overall
5.9%
0.8%
5.8%
0.8%
5.8%
1.2%
6.2%
1.4%
5.5%
1.5%
1.9%
1.0%
2.5%
1.3%
1.8%
0.9%
2.2%
1.2%
1.3%
1.0%
3.6%3.8%3.4%3.8%3.1%
ByMarketandSpecificUse
2Q2017|InlandEmpire|Industrial
East West
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
ByMarket
2Q2016 3Q2016 4Q2016 1Q2017 2Q2017
0.0%
1.0%
2.0%
3.0%
4.0%
InlandEmpireBySpecificUse
2Q2016 3Q2016 4Q2016 1Q2017 2Q2017
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
NaonalbySpecificUse
DirectVacancyRates
Flex Whse/Dist
Flex LtInd Mfg Whse/Dist
2Q2017MarketTrends©2017byXceligent,Inc.AllRightsReserved. BUILDINGDATA.EVERYWHERE.
MarketName SpecificUse
QuarterYear
2Q2016 3Q2016 4Q2016 1Q2017 2Q2017
East Flex
Whse/Dist
West Flex
Whse/Dist
Overall
$0.42
-
$0.47
$0.66
$0.48
$0.84
$0.46
$0.84
$0.44
$0.71
$0.56
$0.65
$0.56
$0.65
$0.59
$0.79
$0.58
$0.72
$0.57
-
$0.48$0.51$0.51$0.50$0.50
ByMarketandSpecificUse
2Q2017|InlandEmpire|Industrial
East
West
$0.00
$0.20
$0.40
ByMarket
DirectWeightedAverageAskingRates(NNN)
2Q2016 3Q2016 4Q2016 1Q2017 2Q2017
$3.00
$4.00
$5.00
$6.00
$7.00
NaonalbySpecificUse
2Q2016 3Q2016 4Q2016 1Q2017 2Q2017
$0.50
$0.60
$0.70
$0.80
InlandEmpirebySpecificUse
Flex Whse/Dist
Flex LtInd Mfg Whse/Dist
2Q2017MarketTrends©2017byXceligent,Inc.AllRightsReserved. BUILDINGDATA.EVERYWHERE.
2Q2017|InlandEmpire|Industrial
AbsorponMap
PropertyName SignificantTransacons MarketName SpecificUse
DukePerrisLogiscsCenterBldg1 Wayfair,LLC East Whse/Dist
PacificPalmCenter JCPenney East Whse/Dist
StraordRanchBldg2 Essendant,Inc. East Whse/Dist
MeredithInternaonalCentre ArvatoDigitalServices West Whse/Dist
PrologisKaiserDistribuonCenteriLADInc. West Whse/Dist
13366PhiladelphiaSt GoPlusCorp West Whse/Dist
3800EPhiladelphiaSt LISTLogiscs West Whse/Dist
OakmontCherryAvenue,Bldg1 GoldenStateFoods West Whse/Dist
1,244,874
624,627
599,113
553,136
388,130
266,950
248,738
182,919
LargestPosives(Total)
PropertyName SignificantTransacons MarketName SpecificUse
1100SEwandaAve YankeeClipperDistribuon West Whse/Dist
10664-10680AcaciaSt Save-A-Lot West Whse/Dist
9041PisburghAve XinghuiInternaonal West Whse/Dist
813PalmyritaCt CaliforniaCustomBo les East Whse/Dist
6971CentralAve FlexsteelIndustries,Inc. East Whse/Dist
SierraGatewayCenter OnTrac West Whse/Dist
1450-1460MountainViewAve StaterBros East Whse/Dist
1975ELocustSt LeaboFoodsDistribuon,Inc. West Whse/Dist
-185,342
-147,498
-143,331
-77,392
-69,000
-68,914
-65,520
-54,323
LargestNegaves(Total)
Negave Posive
2Q2017MarketTrends©2017byXceligent,Inc.AllRightsReserved. BUILDINGDATA.EVERYWHERE.
QuarterYear
2Q2016 3Q2016 4Q2016 1Q2017 2Q2017
0
100
200
300
#ofLeaseTransacons
0.0%
1.0%
2.0%
3.0%
4.0%
DirectVacancyRate
LeasingAcvityTrends
QuarterYear
0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360
2Q2016
3Q2016
4Q2016
1Q2017
2Q2017
LeasingAcvity(#ofNewDeals)
2Q2017|InlandEmpire|Industrial
2Q2016 3Q2016 4Q2016 1Q2017 2Q2017
0M
200M
400M
600M
$0
$50
$100
SalesVolumevs.Price/SF
Property SaleDate Buyer SalePrice
SafariBusiness
CenterBldg7
05/24/2017 RexfordIndustrialRealty $91,000,000
2380RailroadSt 05/18/2017 TARealty $25,750,000
CitrusPark 04/17/2017 Bru enGlobal $19,385,132
20IowaAve 05/30/2017 RDOEquipmentCompany $15,825,500
TopSales
DirectVacancyRate LeaseTransacons
SizeRange(sf)
<2.5K 2.5K-5K 5K-10K 10K-25K 25K-50K >50KSF
AggregateSalesVolume AvgPrice/sf
2Q2017MarketTrends©2017byXceligent,Inc.AllRightsReserved. BUILDINGDATA.EVERYWHERE.
2Q2017|InlandEmpire|Industrial
Term Definion
DirectVacant(sf) Thetotalofthevacantsquarefootageinabuildingthatisbeingmarketedbyanagentrepresenngthelandlord.
Inventory
Thetotalsquarefeet(sf)ofallexisngsingleandmultenantindustrialproperesgreaterthan10,000sf.Buildingswithanoffice
buildoutgreaterthan30%andaparkingraogreaterthan3:1,000areexcluded.
NetAbsorpon Thenetchangeinphysicallyoccupiedspacefromquartertoquarter,expressedinsquarefeet.
Sublease(sf)
Spacethatisofferedforleasebyacurrenttenant,orhisagent,withinaproperty.Whetherthetenantispayingrentornot,thespace
isconsideredvacantonlyifitisunoccupied.
TotalAvailable(sf) Alloftheavailableleasablespacewithinabuilding,whetheritisoccupiedorvacant,fordirectleaseorsubleasespace.
TotalVacant(sf) Thetotalofallofthevacantsquarefootagewithinabuilding,includingbothdirectandsubleasespace.
XceligentPartner AIRCRE
Terminology
Thisinformaonhasbeenobtainedfromsourcesbelievedreliable.Whilewedonotdoubtitsaccuracy,wehavenotverifieditandmakenoguarantee,warrantyor
representaonaboutit.Itisyourresponsibilitytoindependentlyconfirmitsaccuracy.
2Q2017MarketTrends©2017byXceligent,Inc.AllRightsReserved. BUILDINGDATA.EVERYWHERE.
2Q2017|InlandEmpire|Industrial
CBRE DaveConsani
JimKoenig
ColliersInternaonal JoshHayes
MarkZorn
Cushman&Wakefield KyleKehner
DaumCommercial RickJohn
JLL MikeMcCrary
PatrickWood
AdvisoryBoardMembers
BradHauser RegionalVPofAnalycs bhauser@xceligent.com (281)782-3944
Ma Nelson DirectorofAnalycs mnelson@xceligent.com (714)509-1404
MichaelFoxworthy VPofNaonalAccounts mfoxworthy@xceligent.com (805)807-6291
MoniqueEbel DirectorofResearch mebel@xceligent.com (714)538-8432
SeanPullin SalesExecuve spullin@xceligent.com (714)855-5801
TimHayes ExecuveDirector-AIRCRE thayes@aircre.com (213)687-8777
XceligentTeam
JLL RubenGoodsell
Lee&Associates MichaelChavez
Majesc KyleValley
NAICapital NickChang
NGKF MarkKegans
RonWashle
StrataRealty Tim Hawke
Voit WaltChenoweth
AdvisoryBoardMembers(cont'd)
2Q2017MarketTrends©2017byXceligent,Inc.AllRightsReserved. BUILDINGDATA.EVERYWHERE.
2Q2017|InlandEmpire|Industrial

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Industrial Real Estate Market Trends for the Inland Empire in California

  • 1. 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 0M 1M 2M 3M 4M TotalQuarterlyAbsorpon 0.0% 1.0% 2.0% 3.0% 4.0% AbsorponandVacancyRate Inventory(sf) #ofBldgs QrtlyAbs(sf) TotalAvailRate TotalVacancyRate U/CInventory(sf) Delivered(sf) WeightedAverageAskingRate(NNN) $0.48 3,044,925 0 3.6% 5.4% 4,174,068 6,303 509,079,471 MarketRecap AccordingtotheBureauofLaborStascs,theCalifornia unemploymentratedropped0.7percentagepointsfrom5.5% inApril2016to4.8%inApril2017.Unemploymentrateforthe USwasreportedat4.4%downfrom5.0%overthesame me period.TheRiverside-SanBernardino-Ontariometropolitan stascalareajobcreaonincreased3%fromtheprevious year.Industrialusingjobs(industriesincludemanufacturing, construcon,tradetransportaonandulies)increasedby 21,500jobsfromApril2016toApril2017. EconomicOverview TheInlandEmpireindustrialmarketrecorded4,174,068sfof posivenetabsorponduring2Q2017.Absorponwasup from2.3msfrecordedduring1Q2017.Thetotalvacancyrate hasdecreasedfrom3.9%in1Q2017to3.6%atthecloseof2Q 2017.Totalavailabilityratedecreased0.6percentagepoints from6%to5.4%duringthesame meperiod.Weighted averageaskingratesdecreased$0.04NNNoverthesecond quarterwiththemajorityofnewerbuildingsbeingmarketed withoutanaskingrate.Construconacvityincreasedby4 msffrom1Q2017mostlyduetotheheavyrainfallSouthern Californiareceivedintheearlymonthsof2017,se ngmany projectsback3to6months. MarketOverview TheInlandEmpireremainsonetheho estindustrialmarkets inthecountrywithanotherquarterofnetabsorponinthe millionsand27msfcurrentlyunderconstrucon.3msfwas delivered2Q2017andanother12msfisexpectedtodeliverin 3Q2017.TheI.E.Westsubmarketrecordedthemajorityofnet absorponwith2.3msf,loweringthevacancyrateto1.9%.As thecoastalmarketsconnuetostrugglewithalackofClassA inventoryandeCommercedemandconnuestogrow, tenantswillconnuetolooktowardtheI.E.forbrandnew StateOfTheArtdistribuonfacilies. MarketHighlights 2Q2017|InlandEmpire|Industrial February2015 April2015 June2015 August2015 October2015 December2015 February2016 April2016 June2016 August2016 October2016 December2016 February2017 April2017 0 500 1000 1500 0.0% 2.0% 4.0% 6.0% InlandEmpireEmployment Source:BLS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2Q2017MarketTrends©2017byXceligent,Inc.AllRightsReserved. BUILDINGDATA.EVERYWHERE.---------------------------- QrtlyAbs(sf) TotalVacancyRate 27,667,766
  • 2. 2Q2017MarketTrends©2017byXceligent,Inc.AllRightsReserved. BUILDINGDATA.EVERYWHERE. MarketName SpecificUse Inventory(sf) Avail(sf) Vacant(sf) VacancyRate QrtlyAbs(sf) YTDNetAbs(sf) East Flex Whse/Dist Subtotal West Flex Whse/Dist Subtotal Overall 3,689,095 3,669,759 19,336 1,813,980 1,810,428 3,552 5.9% 6.1% 0.8% 13,052,581 12,982,184 70,397 17,035,562 16,875,697 159,865 222,607,631 213,656,482 8,951,149 2,887,496 2,894,482 -6,986 2,360,088 2,339,099 20,989 1.9% 1.9% 1.0% 5,339,985 5,261,149 78,836 10,484,319 10,287,129 197,190 286,471,840 278,703,450 7,768,390 6,576,5914,174,0683.6%18,392,56627,519,881509,079,471 OverviewbyMarket(Total) SpecificUse Inventory(sf) Avail(sf) Vacant(sf) VacancyRate QrtlyAbs(sf) YTDNetAbs(sf) Flex Whse/Dist Overall 6,576,591 6,564,241 12,350 4,174,068 4,149,527 24,541 3.6% 3.7% 0.9% 18,392,566 18,243,333 149,233 27,519,881 27,162,826 357,055 509,079,471 492,359,932 16,719,539 OverviewbySpecificUse(Total) 2Q2017|InlandEmpire|Industrial
  • 3. 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 0M 10M 20M 30M TotalAvailableandVacant 27,667,766 ConstruconbyMarket 1 2 2Q2017MarketTrends©2017byXceligent,Inc.AllRightsReserved. BUILDINGDATA.EVERYWHERE. SpecificUse Inventory(sf) Avail(sf) Vacant(sf) VacancyRate QtrlyAbs(sf) YTDNetAbs(sf) Flex Whse/Dist Overall 6,535,774 6,521,476 14,298 4,247,958 4,221,469 26,489 3.6% 3.6% 0.9% 18,080,662 17,933,377 147,285 25,317,012 24,965,553 351,459 509,079,471 492,359,932 16,719,539 OverviewbySpecificUse(Direct) SpecificUse Inventory(sf) Avail(sf) Vacant(sf) VacancyRate QrtlyAbs(sf) YTDNetAbs(sf) Flex Whse/Dist Overall 40,817 42,765 -1,948 -73,890 -71,942 -1,948 0.1% 0.1% 0.0% 311,904 309,956 1,948 2,202,869 2,197,273 5,596 509,079,471 492,359,932 16,719,539 OverviewbySpecificUse(Sublease) 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 0.0% 1.0% 2.0% 3.0% 4.0% Vacancy% VacancyRate 2Q2017|InlandEmpire|Industrial Avail(sf) Vacant(sf) Total Direct Sublease West East
  • 4. 2Q2017MarketTrends©2017byXceligent,Inc.AllRightsReserved. BUILDINGDATA.EVERYWHERE. MarketName SpecificUse QuarterYear 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 East Flex Whse/Dist West Flex Whse/Dist Overall 5.9% 0.8% 5.8% 0.8% 5.8% 1.2% 6.2% 1.4% 5.5% 1.5% 1.9% 1.0% 2.5% 1.3% 1.8% 0.9% 2.2% 1.2% 1.3% 1.0% 3.6%3.8%3.4%3.8%3.1% ByMarketandSpecificUse 2Q2017|InlandEmpire|Industrial East West 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% ByMarket 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 0.0% 1.0% 2.0% 3.0% 4.0% InlandEmpireBySpecificUse 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% NaonalbySpecificUse DirectVacancyRates Flex Whse/Dist Flex LtInd Mfg Whse/Dist
  • 5. 2Q2017MarketTrends©2017byXceligent,Inc.AllRightsReserved. BUILDINGDATA.EVERYWHERE. MarketName SpecificUse QuarterYear 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 East Flex Whse/Dist West Flex Whse/Dist Overall $0.42 - $0.47 $0.66 $0.48 $0.84 $0.46 $0.84 $0.44 $0.71 $0.56 $0.65 $0.56 $0.65 $0.59 $0.79 $0.58 $0.72 $0.57 - $0.48$0.51$0.51$0.50$0.50 ByMarketandSpecificUse 2Q2017|InlandEmpire|Industrial East West $0.00 $0.20 $0.40 ByMarket DirectWeightedAverageAskingRates(NNN) 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 $3.00 $4.00 $5.00 $6.00 $7.00 NaonalbySpecificUse 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 $0.50 $0.60 $0.70 $0.80 InlandEmpirebySpecificUse Flex Whse/Dist Flex LtInd Mfg Whse/Dist
  • 6. 2Q2017MarketTrends©2017byXceligent,Inc.AllRightsReserved. BUILDINGDATA.EVERYWHERE. 2Q2017|InlandEmpire|Industrial AbsorponMap PropertyName SignificantTransacons MarketName SpecificUse DukePerrisLogiscsCenterBldg1 Wayfair,LLC East Whse/Dist PacificPalmCenter JCPenney East Whse/Dist StraordRanchBldg2 Essendant,Inc. East Whse/Dist MeredithInternaonalCentre ArvatoDigitalServices West Whse/Dist PrologisKaiserDistribuonCenteriLADInc. West Whse/Dist 13366PhiladelphiaSt GoPlusCorp West Whse/Dist 3800EPhiladelphiaSt LISTLogiscs West Whse/Dist OakmontCherryAvenue,Bldg1 GoldenStateFoods West Whse/Dist 1,244,874 624,627 599,113 553,136 388,130 266,950 248,738 182,919 LargestPosives(Total) PropertyName SignificantTransacons MarketName SpecificUse 1100SEwandaAve YankeeClipperDistribuon West Whse/Dist 10664-10680AcaciaSt Save-A-Lot West Whse/Dist 9041PisburghAve XinghuiInternaonal West Whse/Dist 813PalmyritaCt CaliforniaCustomBo les East Whse/Dist 6971CentralAve FlexsteelIndustries,Inc. East Whse/Dist SierraGatewayCenter OnTrac West Whse/Dist 1450-1460MountainViewAve StaterBros East Whse/Dist 1975ELocustSt LeaboFoodsDistribuon,Inc. West Whse/Dist -185,342 -147,498 -143,331 -77,392 -69,000 -68,914 -65,520 -54,323 LargestNegaves(Total) Negave Posive
  • 7. 2Q2017MarketTrends©2017byXceligent,Inc.AllRightsReserved. BUILDINGDATA.EVERYWHERE. QuarterYear 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 0 100 200 300 #ofLeaseTransacons 0.0% 1.0% 2.0% 3.0% 4.0% DirectVacancyRate LeasingAcvityTrends QuarterYear 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 LeasingAcvity(#ofNewDeals) 2Q2017|InlandEmpire|Industrial 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 0M 200M 400M 600M $0 $50 $100 SalesVolumevs.Price/SF Property SaleDate Buyer SalePrice SafariBusiness CenterBldg7 05/24/2017 RexfordIndustrialRealty $91,000,000 2380RailroadSt 05/18/2017 TARealty $25,750,000 CitrusPark 04/17/2017 Bru enGlobal $19,385,132 20IowaAve 05/30/2017 RDOEquipmentCompany $15,825,500 TopSales DirectVacancyRate LeaseTransacons SizeRange(sf) <2.5K 2.5K-5K 5K-10K 10K-25K 25K-50K >50KSF AggregateSalesVolume AvgPrice/sf
  • 8. 2Q2017MarketTrends©2017byXceligent,Inc.AllRightsReserved. BUILDINGDATA.EVERYWHERE. 2Q2017|InlandEmpire|Industrial Term Definion DirectVacant(sf) Thetotalofthevacantsquarefootageinabuildingthatisbeingmarketedbyanagentrepresenngthelandlord. Inventory Thetotalsquarefeet(sf)ofallexisngsingleandmultenantindustrialproperesgreaterthan10,000sf.Buildingswithanoffice buildoutgreaterthan30%andaparkingraogreaterthan3:1,000areexcluded. NetAbsorpon Thenetchangeinphysicallyoccupiedspacefromquartertoquarter,expressedinsquarefeet. Sublease(sf) Spacethatisofferedforleasebyacurrenttenant,orhisagent,withinaproperty.Whetherthetenantispayingrentornot,thespace isconsideredvacantonlyifitisunoccupied. TotalAvailable(sf) Alloftheavailableleasablespacewithinabuilding,whetheritisoccupiedorvacant,fordirectleaseorsubleasespace. TotalVacant(sf) Thetotalofallofthevacantsquarefootagewithinabuilding,includingbothdirectandsubleasespace. XceligentPartner AIRCRE Terminology Thisinformaonhasbeenobtainedfromsourcesbelievedreliable.Whilewedonotdoubtitsaccuracy,wehavenotverifieditandmakenoguarantee,warrantyor representaonaboutit.Itisyourresponsibilitytoindependentlyconfirmitsaccuracy.
  • 9. 2Q2017MarketTrends©2017byXceligent,Inc.AllRightsReserved. BUILDINGDATA.EVERYWHERE. 2Q2017|InlandEmpire|Industrial CBRE DaveConsani JimKoenig ColliersInternaonal JoshHayes MarkZorn Cushman&Wakefield KyleKehner DaumCommercial RickJohn JLL MikeMcCrary PatrickWood AdvisoryBoardMembers BradHauser RegionalVPofAnalycs bhauser@xceligent.com (281)782-3944 Ma Nelson DirectorofAnalycs mnelson@xceligent.com (714)509-1404 MichaelFoxworthy VPofNaonalAccounts mfoxworthy@xceligent.com (805)807-6291 MoniqueEbel DirectorofResearch mebel@xceligent.com (714)538-8432 SeanPullin SalesExecuve spullin@xceligent.com (714)855-5801 TimHayes ExecuveDirector-AIRCRE thayes@aircre.com (213)687-8777 XceligentTeam JLL RubenGoodsell Lee&Associates MichaelChavez Majesc KyleValley NAICapital NickChang NGKF MarkKegans RonWashle StrataRealty Tim Hawke Voit WaltChenoweth AdvisoryBoardMembers(cont'd)