- Overall average rent grew 4.8 percent, landing at $4.68 per square foot. Vacancy rose 10 basis points to 4.1 percent. - Speculative development is trending upwards, with 1.3 million square feet delivered in Q2. Smaller footprints are also being developed. - By Q4 2017, 4.3 million square feet are expected to deliver, with 86.2 percent as speculative developments. Demand has kept pace with new supply.

1. Nashville | Q2 2017
Quarterly Report
JLL Research
Q2 2017
Industrial
Review

2. Industrial submarkets

3. © 2017 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Q2 2017
Nashville
Industrial Insight
Market fundamentals in Smashville are still neck and neck with some of the
hottest markets in the country. Midway through the year, rental rate growth
has stayed strong; however, vacancy has marginally begun to rise. Rental
rates grew to $4.68 per square foot. Meanwhile, vacancy rose 10 basis points
to 4.1 percent. With vacancy and rents at a respective 2.5 percent increase
and 4.8 percent growth since Q1, Nashville’s industrial cycle continues to
exceed expectations.
Landlords have sensed increased activity this cycle and responded with
substantial development. Speculative development this cycle – and even
more notably this year – is blazing. 1.3 million square feet of speculative
development delivered this quarter – 54 percent of which was pre-leased.
Another 3.2 million square feet – 2.2 million square feet of which is speculative
development – will deliver over the next 18 months. The most notable shift at
this point in the development cycle is that rental rates now justify
construction of smaller footprints, enabling them to cater to a different tenant
profile. As we noted in Q2 2016, there was a supply gap in the 20,000-50,000
square-foot range. Currently, there are 8 buildings that are able to
accommodate requirements of this size – all set to deliver by year-end. There
are another 12 buildings in this size range in the pipeline.
Outlook
Smashville remains a landlord favorable market. Rent growth and demand for
Nashville are strong. By Q4 2017, 4.3 million square feet (86.2 percent of which
are speculative developments) are expected to deliver. Demand has kept
pace with speculative projects. Additionally, rent growth is giving developers
the offensive position to build footprints of smaller sizes. The outlook for 2017
continues to indicate substantial tenant appetite and developer intention to
bring new product to market.
Fundamentals Forecast
YTD net absorption 808,717 s.f. ▲
QTD net absorption -162,975 s.f. ▶
Under construction 3,202,562 s.f. ▶
Total vacancy 4.1% ▶
Average asking rent (NNN) $4.68 p.s.f. ▲
Tenant improvements Stable ▶
0
2,500,000
5,000,000
2013 2014 2015 2016 YTD
2017
Supply and demand (s.f.) Net absorption
Deliveries
Exceeding expectations like our hockey – and our
catfish!
8.4%
7.1%
5.6%
4.4% 4.1%
2013 2014 2015 2016 YTD 2017
Total vacancy
For more information, contact: Hensley Loeb| hensley.loeb@am.jll.com
• Overall average rent grew 4.8 percent, landing at $4.68 per square foot.
• Leasing activity continues to be the highest in the Southeast submarket
and is picking up in the submarkets closest to the core (namely: East,
North and IBD).
• Speculative development is trending upwards – as are smaller
footprints.
$0.00
$2.00
$4.00
$6.00
2013 2014 2015 2016 2017
Average asking rents ($/s.f.)
W&D Manufacturing

4. Source: JLL Research 2017 Jones Lang LaSalle IP, Inc. All rights reserved.
Nashville
Q2 2017
Industrial development
This report analyzes all industrial developments under construction & new deliveries > 30,000 s.f.
Total leased at delivery (%) 64.7%
Total speculative at delivery (s.f.) 1,450,050
Total BTS at delivery (s.f.) 83,000
Total Owner-User at delivery (s.f.) 500,000
Total # of properties delivered 6
Asking rental rate (low - high) $3.50 - $6.50
Top projects delivered to date
Building RBA (s.f.) Delivery date
Leased at
delivery (%)
Airport Distribution Park 1 622,830 Q2 2017 0%
CentrePointe Distribution Park #4 - Bldg B 601,520 Q2 2017 100%
Wonderful Group 500,000 Q1 2017 100%
CentrePointe Distribution Park #4 - Bldg C 130,000 Q2 2017 100%
Skyline Buildling C 95,700 Q1 2017 0%
Total pre-leased (%) 55.6%
Total speculative under construction (s.f.) 2,158,037
Total BTS under construction (s.f.) 12,000
Total Owner-user under construction (s.f.) 1,032,525
Total # of properties UC 11
Asking rental rate (low - high) $3.85 - $6.50
Top projects currently under construction
Building RBA (s.f.) Delivery date Pre-leased (%)
Lowe's 1,032,525 Q3 2018 100%
Commerce Farms 5 652,000 Q3 2017 58%
Park 840 Spec West 408,000 Q3 2017 0%
Airport Distribution Park 2 301,485 Q4 2017 0%
CentrePointe Distribution Park #4 - Bldg D 184,652 Q3 2017 0%
Speculative
Owner-user
Speculative
Submarket
Under construction
3,202,562
Under construction (s.f.)
Under construction in-depth
Upcoming deliveries by year (s.f., excludes YTD completions)
New deliveries
Completions in-depth
2,033,050
Total delivered YTD (s.f.)
Historical deliveries (s.f.)
Construction typeOwnerSubmarket
North
Southeast
Wilson County
Southeast
Southeast
Panattoni
Panattoni
Marco Polo
Panattoni
Hillwood
Speculative
Speculative
Southeast
Southeast
East
Wilson County
Robertson County
Speculative
Speculative
Owner Construction type
Speculative
Panattoni
Hillwood
Huntington/JDA
HSA Commercial Real Estate
Lowe's
Speculative
Owner-user
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
2010 2011 2012 2013 2014 2015 2016 YTD 2017
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
East North Southeast Wilson County Robertson County
BTS Owner-user Speculative

5. Source: JLL Research 2017 Jones Lang LaSalle IP, Inc. All rights reserved.
Nashville
Q2 2017
Industrial leasing activity
This report analyzes all closed industrial leases > 10,000 s.f.
30
2,546,696
2,368,186
0
0
53
3,759,551
Avg. building
construction date
832,354
204,000
522,923
467,941
1,321,122
0
Top 10 lease transactions this year
Size Building status Year built
412,480 Existing 2016
372,801
Under
construction
2017
300,000 Existing 2000
244,000 Existing 1985
240,000 Existing 2005
200,000 Existing 1995
143,955 Existing 1997
141,960 Existing 2016
130,000 Existing 2016
124,000 Existing 1996
Total s.f. leased QTD:
Warehouse/Distribution
Leasing activity YTD
1,988
Total s.f. leased QTD:
Manufacturing
Leasing activity (s.f.) by transaction type YTD
Total s.f. leased QTD:
Special Purpose
Total leases YTD
84,890
Total s.f. leased YTD
At a glance
Total leases QTD
Total s.f. leased QTD
Leasing activity by size YTD
Leasing activity by submarket YTD
United Parcel Service, Inc.
Tenant Address Submarket
Avg. lease size (in s.f.)
Expansion in market
Expansion in building
Renewal
Extension (< 36-month term)
Relocation within market
New to market
Lease type
7001-7013 Centrepointe Dr Southeast Direct
407 New Sanford Road Southeast
EastNE of Hwy 840 and Hwy 109 Direct
Direct
Columbus McKinnon 7001-7013 Centrepointe Dr Southeast Direct
Hot Topic 1227 Heil Quaker Blvd Southeast
ModusLink
Direct
PathGroup 1000-1028 Airpark Center Dr Southeast Direct
Direct
Sumitomo Rubber 104 Challenger Dr North Direct
Superior Communications 7001-7013 Centrepointe Dr Southeast Direct
Geodis
2000-2098 Midway Ln Southeast
National Distribution &
Contracting, Inc.
SubleaseSoutheastGoggin Warehousing 328 Weakley Lane
- 3
9 7 34
-
500,000
1,000,000
1,500,000
2,000,000
500,000+ 250,000-499,999 100,000-249,999 50,000-99,999 10,000-49,999
Total leased Number of leases
64.7%
16.0%
8.5%
6.5%
1.4%
1.3%
0.9%
0.6%
Southeast
East
North
IBD
Rutherford County
Wilson County
Southwest
West
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017
Historical leasing activity

6. Source: JLL Research 2017 Jones Lang LaSalle IP, Inc. All rights reserved.
Nashville
Q2 2017
Industrial sales activity
This report analyzes all industrial sales > 10,000 s.f.
$100,663,155
10
$42
6.0%
75.2%
21.2%
5.75-6.00% 0 0 $0
7.5-8% 0 13 $100,663,155
Top 10 sales transactions this year
Size (s.f.) $ p.s.f. Sale date
606,862 $51 Jan-17
340,444 $62 May-17
277,000 $45 May-17
272,891 $43 Feb-17
130,320 $42 Feb-17
52,366 $88 Jan-17
67,630 $64 Jan-17
45,120 $80 Mar-17
46,690 $75 Apr-17
46,592 $62 Jan-17
Metro Fairway Partners LP
Nashboro/Park Avenue LLC
Edward McAssey
Nashville Holdings LLC
$21,200,000
$12,400,000
$11,852,155
$5,450,000
30 Stanley St Jeffrey W Buntin Jr Stanley Street LLC $2,900,000
216 Waldron Rd PMRE LLC Donald J Conard $3,625,000
1424 Lebanon Pike Scott Fulner Sanders Manufacturing Company $3,480,000
TRP Investors $4,600,000
830 Fesslers Pkwy RTA Willow Trace II LLC Blevins Family Investments LP $4,356,000
820 Fesslers Pkwy Horrell Properties, Inc
300 Confederate Dr Angelo Gordon
225 Industrial Blvd Exeter
730 Freeland Station Rd RJ Young
195 Polk Ave
Trevecca Nazarene University,
Smith/Hallemann Prtnrs
245 Great Circle Rd DRA Advisors Cabot Properties $30,800,000
Building address Buyer company Seller company Sales price $
Sales volume $ by submarket
Warehouse/Dist. sales volume
as % of total YTD
Flex/R&D sales volume as % of
total YTD
Cap rate range
Core Class A Ind.
Core Class A Flex
Average Class A price p.s.f. YTD
At a glance
Total volume YTD
Number of transactions YTD
Average Class A cap rate YTD
Sales activity by building type
Transactions details
Number of partial interest
transactions
Top sellers (s.f.)Top buyers (s.f.)
Number of domestic
buyers
Foreign capital $
Average partial interest
acquired
Number of foreign
buyers
Domestic Capital $
$75,682,155 $21,356,000 $3,625,000
1,443,799 s.f.
396,996 s.f.
45,120 s.f.
0 s.f.
200,000 s.f.
400,000 s.f.
600,000 s.f.
800,000 s.f.
1,000,000 s.f.
1,200,000 s.f.
1,400,000 s.f.
1,600,000 s.f.
$0
$50,000,000
$100,000,000
Warehouse / Distribution Flex/R&D Manufacturing
Sum of Price ($) Sum of RBA (SF)
32%
18%15%
14%
7%
4%
3%
3%2%2%
DRA Advisors
RJ Young
Trevecca Nazarene University, Smith/Hallemann Prtnrs
Angelo Gordon
Exeter
RTA Willow Trace II LLC
Horrell Properties, Inc
Scott Fulner
32%
18%15%
14%
7%
4%
3%
2%2%2%
Cabot Properties
Metro Fairway Partners LP
Nashboro/Park Avenue LLC
Edward McAssey
Nashville Holdings LLC
Blevins Family Investments LP
TRP Investors
$30,800,000
$24,680,000
$12,400,000
$11,856,000
$11,852,155
$9,075,000
West
North
IBD
East
Southwest
Southeast

7. Nashville
Q2 2017
Industrial Statistics
Inventory
(s.f.)
Quarterly
total net
absorption
(s.f.)
YTD
total net
absorption
(s.f.)
YTD
total net
absorption
(% of stock)
Total
vacancy
(%)
Total
availability
(%)
Average
total asking
rent
($ p.s.f.)
Quarterly
completions
(s.f.)
YTD
completions
(s.f.)
Under
construction
(s.f.)
Nashville Totals
Warehouse & Distribution 136,848,384 -499,333 -179,114 -0.1% 5.1% 8.1% $4.77 1,354,350 1,450,050 3,202,562
Manufacturing 65,539,837 336,358 987,831 1.5% 2.2% 3.4% $4.22 0 583,000 0
Totals 202,388,221 -162,975 808,717 0.4% 4.1% 6.6% $4.68 1,354,350 2,033,050 3,202,562
Submarkets
IBD
Warehouse & Distribution 10,973,218 -171,648 -217,150 -2.0% 6.0% 7.3% $7.99 0 0 0
Manufacturing 4,318,612 -15,781 -11,431 -0.3% 0.4% 1.9% $6.06 0 0 0
Totals 15,291,830 -187,429 -228,581 -1.5% 4.4% 5.8% $7.82 0 0 0
North
Warehouse & Distribution 35,546,064 -292,619 -232,468 -0.7% 5.4% 8.2% $4.62 0 95,700 1,044,525
Manufacturing 10,761,463 -36,435 -25,935 -0.2% 6.5% 9.0% $3.45 0 0 0
Totals 46,307,527 -329,054 -258,403 -0.6% 5.7% 8.4% $4.32 0 95,700 1,044,525
East
Warehouse & Distribution 7,560,418 -103,346 -93,991 -1.2% 1.8% 5.1% $7.42 0 0 493,000
Manufacturing 6,144,393 0 0 0.0% 0.1% 0.2% $8.50 0 0 0
Totals 13,704,811 -103,346 -93,991 -0.7% 1.0% 2.9% $7.46 0 0 493,000
West
Warehouse & Distribution 4,718,204 30,663 97,470 2.1% 2.8% 5.6% $5.85 0 0 0
Manufacturing 2,922,024 0 96,701 3.3% 4.8% 0.5% - 0 0 0
Totals 7,640,228 30,663 194,171 2.5% 3.6% 3.7% $5.54 0 0 0
Southeast
Warehouse & Distribution 41,247,011 -16,272 515,640 1.3% 5.8% 9.5% $4.19 1,354,350 1,354,350 1,013,037
Manufacturing 14,902,358 55,355 372,767 2.5% 1.2% 3.4% $4.53 0 83,000 0
Totals 56,149,369 39,083 888,407 1.6% 4.6% 7.9% $4.22 1,354,350 1,437,350 1,013,037
Southwest
Warehouse & Distribution 8,582,630 21,450 17,502 0.2% 3.9% 5.3% $7.22 0 0 0
Manufacturing 3,936,209 6,426 16,426 0.4% 2.4% 2.7% $6.57 0 0 0
Totals 12,518,839 27,876 33,928 0.3% 3.4% 4.5% $7.04 0 0 0
Wilson County
Warehouse & Distribution 21,329,329 -8,500 -6,399 0.0% 3.6% 6.0% $4.40 0 0 652,000
Manufacturing 3,974,604 28,125 59,285 1.5% 0.5% 0.5% $7.10 0 500,000 0
Totals 25,303,933 19,625 52,886 0.2% 3.1% 5.2% $4.44 0 500,000 652,000
Periphery East
Warehouse & Distribution 662,874 -71,325 -71,325 -10.8% 10.8% 17.5% $2.91 0 0 0
Manufacturing 1,984,012 18 18 0.0% 11.3% 11.3% - 0 0 0
Totals 2,646,886 -71,307 -71,307 -2.7% 11.1% 12.8% $2.91 0 0 0
Periphery West
Warehouse & Distribution 6,228,636 112,264 -188,393 -3.0% 8.0% 14.5% $3.56 0 0 0
Manufacturing 16,596,162 298,650 480,000 2.9% 0.3% 1.6% $3.47 0 0 0
Totals 22,824,798 410,914 291,607 1.3% 2.4% 5.1% $3.54 0 0 0
Hensley Loeb | Research Analyst, TN Markets
1801 West End Avenue Suite 1100 Nashville TN 37203 | tel +1 615 928 5322 | hensley.loeb@am.jll.com
2017 Jones Lang LaSalle IP, Inc. All rights reserved.

8. About JLL
JLL (NYSE: JLL) is a leading professional services firm that
specializes in real estate and investment management. A
Fortune 500 company, JLL helps real estate owners,
occupiers and investors achieve their business ambitions.
In 2016, JLL had revenue of $6.8 billion and fee revenue of
$5.8 billion and, on behalf of clients, managed 4.4 billion
square feet, or 409 million square meters, and completed
sales acquisitions and finance transactions of
approximately $136 billion. At year-end 2016, JLL had
nearly 300 corporate offices, operations in over 80
countries and a global workforce of more than 77,000. As of
December 31, 2016, LaSalle Investment Management has
$60.1 billion of real estate under asset management. JLL is
the brand name, and a registered trademark, of Jones Lang
LaSalle Incorporated. For further information, visit
www.jll.com.
About JLL Research
JLL’s research team delivers intelligence, analysis and
insight through market-leading reports and services that
illuminate today’s commercial real estate dynamics and
identify tomorrow’s challenges and opportunities. Our
more than 400 global research professionals track and
analyze economic and property trends and forecast future
conditions in over 60 countries, producing unrivalled local
and global perspectives. Our research and expertise,
fueled by real-time information and innovative thinking
around the world, creates a competitive advantage for our
clients and drives successful strategies and optimal real
estate decisions.
© 2017 Jones Lang LaSalle IP, Inc.
All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Hensley Loeb
Research Analyst
+1 615 928 5322
Hensley.Loeb@am.jll.com
For leasing assistance, please contact your industrial brokerage experts:
Bo Fulk
Vice President
+1 615 928 5307
Bo.Fulk@am.jll.com
Jim Rodrigues
Vice President
+1 615 928 5326
Jim.Rodrigues@am.jll.com
For more information on this report, please contact:
Photo credit on first page: Getty Images/Frederick Breedon