The Charlotte industrial market experienced modest net absorption in Q2 2014, with the overall vacancy rate remaining at 6.07%. Notable leasing activity included a nearly 201,000 SF lease signed by 3D Systems. With over 2 million SF of new development underway, the largest amount since recovery, landlords have been able to increase rental rates. Low vacancy and high construction are creating a strong market favoring landlords.

1. INDUSTRIAL MARKET REPORT
CHARLOTTE, NORTH CAROLINA
Q2 2014 | INDUSTRIAL
www.colliers.com/charlotte
MARKET INDICATORS
RELATIVE
TO PRIOR
QUARTER FORECAST
VACANCY
ABSORPTION
RENTAL RATE
CONSTRUCTION
Low Vacancy, High Development
Leads to “Landlords Market”
CHARLOTTE INDUSTRIAL MARKET
> The demand to shorten delivery
time of e-commerce products
will continue to attract third party
logistics to the southeast
> Single tenant free standing buildings
under 100k SF are in high demand
for purchase
> In 2014 landlords have had the
ability to push warehouse and flex
rents
> Q2 2014 STATISTICS
132,467,250 SF
TOTAL MARKET INVENTORY
6.07%
OVERALL VACANCY RATE
4.87%
WAREHOUSE VACANCY RATE
• The Charlotte industrial market experienced modest net absorption in the 2nd quarter of
2014; the vacancy rate continues to hover at 6.07%.
• This quarter’s move-in activity was mostly dominated by tenants ranging between 40,000
– 60,000 SF with the largest lease being signed by 3D Systems for 200,978 SF at 700
Marine Drive.
• Since breaking ground in June 2013, Mississippi based developer East Group Properties
has delivered one 70,000 SF build-to suit facility for German logistics company Kuehne &
Nagel. Fast forward to the 2nd quarter of 2014 the developer has delivered two additional
buildings bringing Steele Creek Commerce Park to 248,800 SF, the park is 59% leased.
Greater Charlotte Region
• Currently there is over 2 million SF of industrial development planned and under
construction, the largest amount since the beginning of Charlotte’s industrial market
recovery.
• The Cabarrus County, I-85 corridor, northeast of Mecklenburg County, has attracted
industrial speculative building by offering incentive packages to local developers. The
latest parks to break ground are Trinity Capital Advisors at International Business Park
and Childress Klein at Afton Ridge.
Absorption Deliveries Vacancy %
SquareFeet
0%
5%
10%
15%
20%
25%
(2,000,000)
(1,000,000)
0
1,000,000
2,000,000
3,000,000
4,000,000
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014

2. CLASS A BULK BUILDINGS - Lease rates derived from a representative set of
newer tilt-up, concrete buildings averaging 250,000 SF with bulk ceiling height
and standard dock door configuration.
CLASS B WAREHOUSES - Lease rates derived from a representative set
of facilities from 50,000 SF to 150,000 SF with 20’+ clear height and a
functional dock loading configuration.
COMPARISON OF LEASE RATES
Class A & B Existing Buildings
$4.05
AVERAGE
CURRENT
RATE
$3.25
AVERAGE
CURRENT
RATE
CHARLOTTE, NORTH CAROLINA INDUSTRIAL MARKET
Bldgs
Total
Inventory
Sq Ft
Direct
Vacant
Sq Ft
Direct
Vacancy
Rate
Sublease
Vacant
Sq Ft
Sublease
Vacancy
Rate
Total
Vacant
Sq Ft
Vacancy
Rate
Current
Vacancy
Rate
Prior Qtr
Net
Absorption
Current Qtr
SF
Net
Absorption
YTD SF
Net
New Supply
Current Qtr
SF
Net New
Supply
YTD SF
Under
Construction
Sq Ft
Avg
Rental
Rate
CENTRAL
WAREHOUSE 280 8,838,701 498,374 5.64% 0 0.00% 498,374 5.64% 5.53% (10,000) (8,554) - - - $4.20
FLEX 22 917,909 76,946 8.38% 0 0.00% 76,946 8.38% 8.38% 0 (2,450) - - - $16.81
Total 302 9,756,610 575,320 5.90% 0 0.00% 575,320 5.90% 5.79% (10,000) (11,004) - $7.39
AIRPORT/WEST
WAREHOUSE 243 12,469,810 588,019 4.72% 0 0.00% 588,019 4.72% 5.90% 147,452 172,747 - - - $3.99
FLEX 47 1,841,602 155,246 8.43% 0 0.00% 155,246 8.43% 8.28% (2,812) 626 - - - $8.65
Total 290 14,311,412 743,265 5.19% 0 0.00% 743,265 5.19% 6.20% 144,640 173,373 - - - $4.69
NORTH
WAREHOUSE 194 16,100,116 522,580 3.25% 46,000 0.29% 568,580 3.53% 4.39% 212,324 447,013 78,319 107,200 415,541 $4.76
FLEX 94 3,782,275 439,288 11.61% 8,100 0.21% 447,388 11.83% 11.97% 5,417 (37,450) - - - $8.66
Total 288 19,882,391 961,868 4.84% 54,100 0.27% 1,015,968 5.11% 5.83% 217,741 409,563 78,319 107,200 415,541 $5.54
NORTHWEST
WAREHOUSE 222 13,505,475 776,702 5.75% 0 0.00% 776,702 5.75% 6.22% 62,945 89,151 - - - $4.00
FLEX 13 528,593 15,125 2.86% 0 0.00% 15,125 2.86% 3.43% 3,000 0 - - - $5.96
Total 235 14,034,068 791,827 5.64% 0 0.00% 791,827 5.64% 6.11% 65,945 89,151 - - - $4.01
EAST
WAREHOUSE 503 19,933,562 788,256 3.95% 0 0.00% 788,256 3.95% 3.66% (58,653) (8,042) - - - $4.32
FLEX 98 3,782,132 506,082 13.38% 0 0.00% 506,082 13.38% 13.71% 12,516 91,243 - - - $8.04
Total 601 23,715,694 1,294,338 5.46% 0 0.00% 1,294,338 5.46% 5.26% (46,137) 83,201 - - - $4.89
SOUTH
WAREHOUSE 683 43,929,738 2,349,622 5.35% 20,160 0.05% 2,369,782 5.39% 5.63% 105,483 183,021 - 140,542 108,800 $4.12
FLEX 190 6,837,337 1,239,811 18.13% 9,852 0.14% 1,249,663 18.28% 18.57% 20,044 56,861 - - - $7.55
Total 873 50,767,075 3,589,433 7.07% 30,012 0.06% 3,619,445 7.13% 7.38% 125,527 239,882 - 140,542 108,800 $4.87
CHARLOTTE TOTAL
WAREHOUSE 2,125 114,777,402 5,523,553 4.81% 66,160 0.06% 5,589,713 4.87% 5.21% 459,551 875,336 78,319 247,742 524,341 $4.23
FLEX 464 17,689,848 2,432,498 13.75% 17,952 0.10% 2,450,450 13.85% 14.07% 38,165 108,830 - - - $8.36
Total 2,589 132,467,250 7,956,051 6.01% 84,112 0.06% 8,040,163 6.07% 6.39% 497,716 984,166 78,319 247,742 524,341 $4.94
QUARTERLY COMPARISON AND TOTALS
Q1-14 2,589 132,677,635 7,898,612 5.95% 314,412 0.2% 8,213,024 6.19% 6.44% 486,450 486,450 169,423 169,423 498,079 $4.84
Q4-13 2,589 132,572,116 8,234,754 6.21% 426,577 0.3% 8,661,331 6.53% 7.65% 1,503,530 3,307,646 19,554 31,554 199,342 $4.76
Q3-13 2,584 132,103,407 9,828,229 7.44% 342,577 0.3% 10,170,806 7.70% 8.22% 704,842 1,804,116 12,000 12,000 109,554 $4.82
Q2-13 2,588 132,193,965 10,859,123 8.21% 320,800 0.2% 11,179,923 8.46% 9.10% 844,061 1,099,274 0 0 12,000 $4.82
Q1-13 2,588 132,174,406 11,647,284 8.81% 376,700 0.3% 12,023,984 9.10% 8.50% 275,352 275,352 46,000 46,000 12,000 $4.60
Q4-12 2,721 139,718,727 11,368,747 8.10% 437,923 0.3% 11,806,670 8.50% 9.00% 823,715 1,907,785 46,237 369,114 270,400 $4.75
Q3-12 2,716 138,447,289 12,075,139 8.7% 639,914 0.5% 12,715,053 9.2% 9.7% 709,880 1,084,070 64,456 102,421 472,637 $4.65
Q2-12 2,713 139,546,710 13,320,871 9.5% 727,169 0.5% 14,048,040 10.1% 9.7% (464,342) (157,144) 102,421 266,693 $4.65
Q1-12 2,712 140,432,884 13,155,044 9.40% 654,649 0.50% 13,809,693 9.80% 10.00% 265,776 265,776 102,421 102,421 220,456 $4.60
Q4-11 2,710 140,330,463 13,391,864 9.5% 581,184 0.40% 13,973,048 10.0% 9.9% (8,290) 2,017,623 14,900 51,220 258,421 $4.43
Q3-11 2,709 140,315,563 13,351,718 9.5% 598,140 0.4% 13,653,964 9.9% 10.3% 937,898 2,108,235 36,320 36,320 29,900 $4.28
Q2-11 2,708 140,279,243 14,224,496 10.1% 248,724 0.2% 14,473,220 10.3% 11.2% 1,192,949 1,170,337 - - 66,220 $4.27
Q1-11 2,708 140,279,243 15,260,984 10.9% 405,185 0.3% 15,666,169 11.2% #REF! (22,612) (22,612) - - - $4.27
The data tracked is for Mecklenburg County. The data does not reflect the activity in the greater Charlotte Region.
P. 2 | COLLIERS INTERNATIONAL
RESEARCH & FORECAST REPORT | Q2 2014 | CHARLOTTE, NC

3. PROPERTY SUBMARKET BUYER SIZE (SF)
$ / SF
OR ACRE
INDUSTRIAL SALES
11001 Park Charlotte Southwest YG-1 59,542 $50
7295 West Winds Blvd. North Carolina Blue Skies Prop. 36,000 $81
1101 Carrier Dr. Central Discount Trophy & Co 37,600 $37
225 Mooresville Blvd. North Marrano Marc-Equity Corp. 51,200 $23
9900 Twin Lakes Pkwy. North PSI Control Solutions 33,690 $70
2014 INDUSTRIAL LEASE & SALES TRANSACTIONS
PROPERTY SUBMARKET TENANT SIZE (SF)
WAREHOUSE LEASES
700 Marine Drive York 3D Systems 200,978
500 Linkwood Road York Casual Cushion Corporation 181,000
1000 Bond Street Airport Exel 102,657
Shopton Ridge 30-C Southwest Gift Services 40,000
5109 W WT Harris Blvd. Southwest RTS Leasing, LLC 33,418
The
3636 Taylorsville Highway- Colliers International
represented the seller (Nandina Properties
II, LLC) in the sale of a 168,631 SF facility to
FlexSol Packaging. The building will be used for
warehouse and distribution purposes.
225 Mooresville Blvd. - Colliers International
represented both the purchaser (Reger Holdings
LLC) and seller (Toyo Seal America Corporation) in
the sale of a 51,200 SF facility in Mooresville, NC.
Reger Holdings LLC purchased the building as an
investment and has retained Colliers International
for the leasing and management of the asset.
11001 Park Charlotte Road.- Colliers International
represented the seller in the sale of Hart Park,
located in the southwest submarket. The 59,542
SF building was bought by YG1 who manufacturers
cutting tools.
GATEWAY PHASE II-
Southwest
110,000 SF
Breaking Ground 4th Quarter 2014
UNDER CONSTRUCTION
• Demand for Class A
space has outstripped
supply.
• Five buildings are
currently under
construction.
• Over 2 million SF of
industrial speculative
space planned.
INNERLOOP NORTH (2 BUILDINGS) -
North
415,541 SF
4th Quarter 2014 Delivery
Bold text indicates Colliers International transaction
1872 & 2021 Old Mountain Road- Colliers
International represented both the seller (Zimmer)
and purchaser (Nandina Properties III & IV, LLC)
with this transaction. The buildings were previously
used for the manufacturing, warehouse and
distribution of medical products.
COMPANY TYPE PARK
SIZE
(SF)
STATUS
COMPLETED & UNDER CONSTRUCTION BUILDINGS
Beacon Partners Bulk Distribution InnerLoop - North 415,541 Under Construction
Childress Klein Bulk Distribution Ridge Creek West 310,960 Under Construction
Trinity Partners Bulk Distribution 215 International Drive 277,235 Under Construction
Exeter Property Group Bulk Distribution Gateway Distribution Park 110,000 Proposed
Childress Klein Flex Afton Ridge 360,000 Under Construction
The Silverman Group Bulk Distribution Concord Airport Park 550,000 Under Construction
EastGroup Bulk Distribution Steele Creek Comm. Park 178,800 Under Construction
P. 3 | COLLIERS INTERNATIONAL
INDUSTRIAL MARKET REPORT | Q2 2014 | CHARLOTTE, NC

4. (100,000)
(50,000)
0
50,000
100,000
150,000
200,000
250,000
www.colliers.com/marketname
UNITED STATES:
Charlotte Industrial Team
Greg Copps | SIOR
Managing Partner
Lawrence Shaw | SIOR
Managing Partner
Grant Miller
Vice President
Rob Speir
Vice President
Don Moss | SIOR | CCIM
Vice President
Justin Smith
Industrial Specialist
Adam Russ
Investment Services Group
301 S College Street | Suite 3350
Charlotte, NC 28202
485 offices in
63 countries on
6 continents
• $2.1 billion in annual revenue
• Over 1.46 billion square feet under
management
• Over 15,800 professionals
Accelerating success.
This market report is a research document of Colliers International.
Information herein has been deemed reliable and no representation
is made as to the accuracy thereof. Colliers International-Charlotte,
Inc., and certain of its subsidiaries, is an independently owned and
operated business and a member firm of Colliers International
Property Consultants, an affiliation of independent companies with
over 485 offices throughout more than 63 countries worldwide.
PROPERTY NAME
ADDRESS
SUBMARKET
TRANSACTION
VALUE
RSF
PRICE
PER RSF
CAP
RATE
TENANCY BUYER
INVESTMENT SALES
Twin Lakes
Distribution Center
Charlotte $25,500,000 346,500 $73.59 6.0% Single LaSalle
Tremont Industrial
Park
Charlotte $10,000,000 43,780 $69.55 n/a Multi
Carolina Capital In-
vestment Partners
Hart Park Charlotte $2,975,000 56,320 $52.82 n/a
Multi
(Flex)
YG-1 Co Ltd; YG-1
America Inc
Sykes Industrial
Building I & II
Charlotte $17,525,000 252,206 $69.49 n/a Multi Prologis
Ridge Creek III Charlotte $14,516,333 270,000 $53.76 7.0% Single
EastGroup
Properties
Catawba
Distribution Center
Fort Mill $18,000,000 478,000 $37.66 n/a Multi
Exeter Property
Group
Charlotte Business
Park
Charlotte $10,525,000 387,745 $27.14 8.0% Multi
Equity Industrial
Partners
Northcross
Business Campus
Huntersville $7,950,000 80,000 $99.38 n/a
Multi
(Flex)
Stockbridge
Northwoods
Business Center
Charlotte $12,600,000 206,321 $61.07 n/a Single
Exeter Property
Group
Investment Highlights
The second quarter saw several notable transactions of both core Class A and Class B/C product.
The Ridge Creek III transaction represents a modern Class A, 30’ clear, ESFR building trade in
the premier submarket. At the other end of the spectrum, Charlotte Business Park in Chemway
is indicative of investor sentiment towards older vintage product. The most significant trade of
the quarter is the Sykes Industrial transaction, this marks the reentry of ProLogis to the Charlotte
market, adding another national operator to the growing population of institutional owner’s of
industrial properties.
CLASS A
871,852 SF
CLASS B
3,404,989 SF
EAST
NORTHWEST
NORTH
CENTRAL
AIRPORT/WEST
SquareFeet
SOUTH
CLASS C
3,763,322 SF
2ND QUARTER 2014 | Vacant Space By Class 2ND QUARTER 2014 | Net Absorption by Submarket
Class A Class B Class C
Bold text indicates Colliers International transaction
INDUSTRIAL MARKET REPORT | Q2 2014 | CHARLOTTE, NC