The Cincinnati industrial market saw its overall vacancy rate rise to 9.0% in Q3 2011, up from 8.8% in Q2. Year-to-date net absorption totaled negative 1,044,719 square feet as more space came onto the market. The Tri-County/Union Centre submarket saw 616,547 square feet of positive absorption while the Airport submarket had over 600,000 square feet of negative absorption. Rental rates remained relatively unchanged on average from Q2.

1. Q3 2011 | INDUSTRIAL
CINCINNATI, OH
THE KNOWLEDGE REPORT
Vacancy Up As Industrial Market Sees
More Space Hit the Market
As predicted three months ago, the Greater Cincinnati industrial market saw the overall vacancy rate
in the third quarter of 2011 rise to 9.0%. This increase was 20 basis points more than the second
quarter of 2011. As more industrial space came back into the market, the net absorption for the third
quarter totaled a negative 398,042 square feet. This increased the year-to-date negative net
absorption to more than 1 million square feet. Although this increase was expected, it was disappointing
MARKET INDICATORS to see for a market that is trying to rebound from the lingering effects of the economic downturn
of 2008.
Q3 11 Q4 11*
VACANCY The overall weighted asking rate for industrial properties in the third quarter was $3.53 per square
foot, a relatively unchanged figure from the second quarter average of $3.54 per square foot. Flex/
NET ABSORPTION
R&D space slightly increased to a rate of $6.06 per square foot, while distribution space was $2.87
CONSTRUCTION — — per square foot. General industrial space was recorded at $3.70 per square foot, or a $0.09 decrease
from the previous quarter.
RENTAL RATE — —
The two most active submarkets in the Greater Cincinnati industrial market were the Airport
*Projected Change to Following Quarter submarket and the Tri-County/Union Centre submarket. The Airport saw more than 600,000 square
feet of negative absorption and Tri-County/Union Centre recorded more than 600,000 square feet of
positive absorption. Although the negative absorption was a big hit at the Airport, it was a relief to
see Tri-County/Union Centre balance things out with a healthy amount of activity.
OVERALL VACANCY RATE COMPLETIONS VS ABSORPTION
9.5%
Completions Absorption
1,500,000
The Cincinnati Industrial
9.0%
9.0% Market’s vacancy rate
1,000,000
stands at 9.0%, year-to-date
Square Feet
8.5% net absorption totaled
500,000 (1,044,719) SF.
8.0%
0
7.5%
3Q 09
4Q 09
1Q 10
2Q 10
3Q 10
4Q 10
1Q 11
2Q 11
3Q 11
-500,000 (398,042) SF
-1,000,000
3Q 09
4Q 09
1Q 10
2Q 10
3Q 10
4Q 10
1Q 11
2Q 11
3Q 11
Completions Absorption
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2. THE KNOWLEDGE REPORT | Q3 2011 | INDUSTRIAL | CINCINNATI
NORTHERN KENTUCKY 248,360 square feet of positive absorption. This
helped to lower the overall vacancy rate for this
In Northern Kentucky, the Airport submarket saw
submarket by 120 basis points to 6.0%. 7575
the biggest increase in vacancy as total net
Empire Drive was the largest contributor to the
absorption was negative 646,767 square feet for
overall vacancy rate. The building is now 100%
the third quarter. The overall vacancy rate at the
occupied and 128,000 square feet of positive
Airport increased by 230 basis points to 9.9%.
absorption was recorded in the third quarter as
Most of the negative absorption was concentrated
a result.
to distribution space and a small number of deals
AVG. ASKING RATES (PER SF - NET) were accountable for the increase in space given
SUBURBAN OHIO MARKETS
back to the market.
On the north side of the river, the Tri-County/
$8
1100 Burlington Pike was one of the largest loss Union Centre submarket led the way in the third
$7
leaders in Northern Kentucky. The former Square quarter of 2011. This submarket posted 616,547
$6
D building now sits empty and 477,862 square square feet of positive absorption and lowered
$5
feet of vacant space was added to our statistics. the vacancy rate from 13.0% to 12.1%.
$4 2285 Litton Lane (182,000 square feet) became
$3 vacant and available and added to the negative SwimOutlet.com was one of the largest
$2 absorption total. contributors to the positive news in Tri-County, as
3Q 09
4Q 09
1Q 10
2Q 10
3Q 10
4Q 10
1Q 11
2Q 11
3Q 11
the company signed a lease for 390,000 square
The Florence/Walton submarket helped to offset feet at 4300 Port Union Road. Also in Tri-County
General Flex Distribution some of the negative absorption by providing at World Park Building 31, A-T Controls signed a
UPDATE Recent Transactions
LEASING ACTIVITY
PROPERTY SUBMARKET TENANT LANDLORD SIZE TYPE
4300 Port Union Road Tri-County/Union Centre SwimOutlet.com DCT Port Union LLC 390,000 Direct Lease
Former Batavia Ford Transmission Plant Eastern Outlying Global Scrap Management IRG Batavia I LLC 300,000 Direct Lease
5443 Duff Drive Tri-County/Union Centre HD Supply Duke Realty 166,000 Direct Lease
1605 Worldwide Blvd Airport Owens & Minor Distribution TRT-DCT LLC 150,100 Direct Lease
World Park Bldg 31 Tri-County/Union Centre A-T Controls Duke Realty 122,120 Direct Lease
ProLogis Park Sharonville #2 Tri-County/Union Centre hhGregg ProLogis 100,800 Direct Lease
910 Lila Avenue Eastern Outlying 3M Naples Milfield Venture LLC 80,000 Direct Lease
10345 S Medallion Blvd Lockland/Evendale Protective Packaging Solutions Arka Hollywood I LLC 69,720 Direct Lease
Enterprise Station B Florence/Walton Magna-Tech Manufacturing Dividend Capital Investments LLC 64,177 Direct Lease
Mosteller Distribution Center Tri-County/Union Centre Keebler, Inc. Duke Realty 63,410 Direct Lease
6245 Creek Road Blue Ash CECO Environmental Mandceng LLC 53,210 Direct Lease
11725 Commons Drive Tri-County/Union Centre Full Throttle Indoor Karting, LLC N/A 51,200 Direct Lease
4170 Columbia Road I-71 North Siemens Lebanon Discovery LLC 51,200 Direct Lease
Port Union Commerce Park Bldg 2 Hamilton Consentino DCT Port Union LLC 33,600 Direct Lease
Airpark Business Center III A Airport Pella Windows Ashley/Hemmer LLC 33,515 Direct Lease
SALES ACTIVITY
PROPERTY SUBMARKET BUYER SELLER SIZE SALES PRICE
537 Grandin Road I-71 North Hosea Project Movers Sumco Phoenix Corp 200,000 $825,000
1111 Western Row Road I-71 North Rhinestahl Corporation Malhotra Family LLC 120,584 $3,195,000
3650-3680 Kemper Road Tri-County/Union Centre Slate Ridge Holdings Triple D Ohio, LLC 60,900 $2,150,000
6480 Hamilton-Lebanon Road Middletown Housatonic LLC Midwest William R Johns & Carol M Johns 60,000 $1,750,000
7944 Innovation Way I-71 North Steve Ortner J & K Invest Ohio 40,193 $1,800,000
Transactions are believed to be accurate but not guaranteed.
P. 2 | COLLIERS INTERNATIONAL

3. THE KNOWLEDGE REPORT | Q3 2011 | INDUSTRIAL | CINCINNATI
TOTAL DIRECT SUBLEASE TOTAL TOTAL VACANCY PRIOR QUARTER NET YTD NET AVERAGE
INVENTORY VACANT SF VACANT SF VACANT SF RATE VACANCY RATE ABOSRPTION ABSORPTION ASKING RATE
275 EAST CORRIDOR
Distribution 1,382,500 670,000 0 670,000 48.5% 48.5% 0 -19,500 $2.99
Flex Space 849,373 160,555 0 160,555 18.9% 18.9% 0 -35,883 $6.74
General 5,691,129 135,500 0 135,500 2.4% 2.4% 0 25,989 $3.00
TOTAL 7,923,002 966,055 0 966,055 12.2% 12.2% 0 -29,394 $3.52
AIRPORT
Distribution 19,478,687 2,005,305 182,000 2,187,305 11.2% 7.9% -676,965 -61,795 $3.12
Flex Space 2,513,805 379,868 49,400 429,268 17.1% 16.4% 30,198 17,799 $4.78
General 5,886,254 151,200 0 151,200 2.6% 3.8% 0 250,070 $2.92
TOTAL 27,878,746 2,536,373 231,400 2,767,773 9.9% 7.6% -646,767 206,074 $3.35
BLUE ASH
Distribution 2,069,634 198,320 0 198,320 9.6% 9.6% 0 -195,215 $2.31
Flex Space 2,047,353 339,737 16,500 356,237 17.4% 17.8% 7,790 4,459 $7.38
General 9,795,083 925,665 0 925,665 9.5% 6.5% -285,115 -370,323 $3.79
TOTAL 13,912,070 1,463,722 16,500 1,480,222 10.6% 8.6% -277,325 -561,079 $4.75
CAMPBELL COUNTY
Distribution 318,940 0 0 0 0.0% 0.0% 0 0
Flex Space 20,000 0 0 0 0.0% 0.0% 0 0
General 3,854,790 16,000 0 16,000 0.4% 0.4% 0 0
TOTAL 4,193,730 16,000 0 16,000 0.4% 0.4% 0 0
CENTRAL/MIDTOWN
Distribution 1,324,774 297,726 0 297,726 22.5% 27.3% 63,736 138,736 $2.02
Flex Space 1,543,719 85,536 0 85,536 5.5% 5.5% 0 43,555 $8.77
General 52,361,383 3,140,483 0 3,140,483 6.0% 6.1% 41,000 -891,663 $3.68
TOTAL 55,229,876 3,523,745 0 3,523,745 6.4% 6.6% 104,736 -709,372 $3.58
COVINGTON
Distribution 776,600 0 0 0 0.0% 0.0% 0 0
Flex Space 40,000 0 0 0 0.0% 0.0% 0 0
General 4,085,849 198,000 36,000 234,000 5.7% 3.0% -112,000 -99,000 $3.75
TOTAL 4,902,449 198,000 36,000 234,000 4.8% 2.5% -112,000 -99,000 $3.75
EASTERN OUTLYING
Distribution 107,520 107,520 0 107,520 100.0% 100.0% 0 -27,520 $4.25
Flex Space 280,809 110,300 0 110,300 39.3% 39.3% 0 0 $5.96
General 3,593,638 666,585 0 666,585 18.5% 18.0% -20,279 -116,404 $4.69
TOTAL 3,981,967 884,405 0 884,405 22.2% 0.0% -20,279 -143,924 $4.81
FLORENCE/WALTON
Distribution 9,262,785 550,803 63,520 614,323 6.6% 9.2% 237,960 3,024 $2.76
Flex Space 696,431 146,955 0 146,955 21.1% 22.8% 11,496 64,389 $4.61
General 10,754,228 323,336 165,000 488,336 4.5% 4.5% -1,096 -58,656 $3.45
TOTAL 20,713,444 1,021,094 228,520 1,249,614 6.0% 7.2% 248,360 8,757 $3.23
HAMILTON
Distribution 335,000 7,200 0 7,200 2.1% 2.1% 0 0
General 6,986,859 256,500 0 256,500 3.7% 3.7% 0 116,000 $4.03
TOTAL 7,321,859 263,700 0 263,700 3.6% 3.6% 0 116,000 $4.03
I-71 NORTH CORRIDOR
Distribution 1,939,653 483,614 0 483,614 24.9% 24.9% 0 -145,491 $3.50
Flex Space 530,805 104,874 0 104,874 19.8% 15.4% -26,038 53,755 $5.93
General 7,611,592 960,057 0 960,057 12.6% 12.3% -27,500 -54,840 $3.70
TOTAL 10,082,050 1,548,545 0 1,548,545 15.4% 14.9% -53,538 -146,576 $3.78
LOCKLAND/EVENDALE
Distribution 521,960 68,000 0 68,000 13.0% 13.0% 0 -68,000 $1.88
Flex Space 780,821 108,055 0 108,055 13.8% 14.1% 2,270 45,050 $6.23
General 17,897,280 580,608 0 580,608 3.2% 1.7% -283,046 -162,839 $3.70
TOTAL 19,200,061 756,663 0 756,663 3.9% 2.5% -280,776 -185,789 $3.86
MONROE/MIDDLETOWN
Distribution 7,498,392 893,140 0 893,140 11.9% 11.9% 0 135,000 $3.12
Flex Space 129,500 40,120 0 40,120 31.0% 31.0% 0 0 $5.00
General 3,498,501 91,500 0 91,500 2.6% 3.3% 23,000 94,500 $3.57
TOTAL 11,126,393 1,024,760 0 1,024,760 9.2% 9.4% 23,000 229,500 $3.24
OUTSIDE METRO AREA
Distribution 275,000 0 0 0 0.0% 0.0% 0 0
General 40,000 40,000 0 40,000 100.0% 100.0% 0 0 $4.50
TOTAL 315,000 40,000 0 40,000 12.7% 100.0% 0 0 $4.50
TRI-COUNTY/UNION CENTRE
Distribution 23,216,789 4,606,467 435,150 5,041,617 21.7% 22.7% 234,815 156,769 $2.74
Flex Space 5,130,977 1,016,085 13,030 1,029,115 20.1% 21.9% 91,093 -91,474 $6.21
General 36,459,352 1,746,709 26,000 1,772,709 4.9% 5.6% 290,639 364,789 $3.71
TOTAL 64,807,118 7,369,261 474,180 7,843,441 12.1% 13.0% 616,547 430,084 $3.35
WESTERN OUTLYING
Flex Space 218,000 0 0 0 0.0% 0.0% 0 0
General 6,215,297 619,209 0 619,209 10.0% 10.0% 0 -160,000 $2.94
TOTAL 6,433,297 619,209 0 619,209 9.6% 9.6% 0 -160,000 $2.94
MARKET TOTALS
Distribution 68,508,234 9,888,095 680,670 10,568,765 15.4% 15.3% -140,454 -83,992 $2.87
Flex Space 14,781,593 2,492,085 78,930 2,571,015 17.4% 17.9% 116,809 101,650 $6.06
General 174,691,235 9,811,352 227,000 10,038,352 5.7% 5.7% -374,397 -1,062,377 $3.70
TOTAL 257,981,062 22,191,532 986,600 23,178,132 9.0% 8.8% -398,042 -1,044,719 $3.53
COLLIERS INTERNATIONAL | P. 3

4. THE KNOWLEDGE REPORT | Q3 2011 | INDUSTRIAL | CINCINNATI
lease for 122,120 square feet with Duke foot facility in Roselawn and Z.F. Steering Systems
Realty Group. has two buildings under construction in Florence.
512 offices in
In the Eastern Outlying submarket, a market that Speculative construction of industrial space is not 61 countries on
has not seen much activity recently, Global Scrap anticipated anytime soon, but build-to-suit projects
Management signed a 300,000 square foot lease like mentioned above will continue to flourish as 6 continents
at the former Batavia Ford transmission plant. This the economy improves.
United States: 125
transaction was welcome news to the eastside of Canada: 38
Cincinnati, as it has not seen a deal of this FORECAST Latin America: 18
magnitude in quite some time. Asia Pacific: 214
As 2011 comes to an end, the last quarter should EMEA: 117
On the negative side, one of the largest hits to the not provide much variation compared to what we • $1.5 billion in annual revenue
market was 8701 LeSaint Drive. The building now have witnessed in the first part of the year. We • 979 million square feet under
sits vacant and has added 345,600 square feet of hope to see some positive net absorption, but this management
space to the market from BAE. Graphic Packaging will not offset the 1 million square feet of negative • Over 12,000 professionals
International also vacated 10600 Evendale Drive, absorption in the first three quarters of the year.
and added 240,000 square feet to the market. Looking ahead to 2012, there is a slight concern
with the Tri-County/Union Centre submarket, as INDUSTRIAL TEAM:
more than 1 million square feet have already Chuck A. Ackerman, CCIM, SIOR
CONSTRUCTION +1 513 562 2266
surfaced and will become vacant next year. This
Several projects continue to move forward towards includes Avon Products on Progress Place, CEVA Erin M. Casey, GA-C, MCRE
completion. USUI International is still on track to Logistics on Windisch Road and the Liz Claiborne +1 513 562 2225
finish their 127,000 square foot facility in Facility on Jacquemin Drive. We hope other
Sharonville. Links Unlimited is working on a Michael E. Daly, SIOR
submarkets, including the Airport, can help pull +1 513 562 2206
60,000 square foot facility in Norwood. Eurostampa their weight and balance out our overall market to
is in the process of completing a 75,000 square end the year on a good note.
John B. Gartner, III, SIOR
+1 513 562 2207
INDUSTRIAL SUBMARKETS William K. Keefer, SIOR
+1 513 562 2235
MONROE/ Steven R. Miller
HAMILTON MIDDLETOWN +1 513 562 2252
TRI-COUNTY/ CEO/PRINCIPAL | CINCINNATI:
UNION CENTRE I-71 CORRIDOR Shenan P. Murphy, CCIM
+1 513 721 4200
BLUE DIRECTOR OF RESEARCH:
LOCKLAND/ ASH Brian T. Graham, CCIM
EVENDALE +1 513 562 2214
GRAPHIC DESIGNER:
I-275 EAST
CORRIDOR Ricky R. Dennis
CENTRAL/ +1 513 562 2213
MIDTOWN
Colliers International | Greater Cincinnati
INT’L
425 Walnut Street, Suite 1200
AIRPORT Cincinnati, OH 45202
COVINGTON
Colliers International
AIRPORT statistics are audited
annually and may result in
revisions to previously
FLORENCE/WALTON CAMPBELL reported quarterly and
CORRIDOR COUNTY final year-end figures
Accelerating success.
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