2009 MASTER Power Point Presentation

Welcome to the 5th AnnualCommercial Real Estate

Market UpdatePresented by

NAIOP-WI & CARW Market UpdateProgram Emcee

Thomas Bernacchi, CPM

Towne Investments

A special ‘Thank You’ to our generous Event Sponsors

Platinum Event Sponsor

Platinum Event Sponsor

Media Sponsor

Gold Event Sponsors

Corporate Sponsors

NAIOP-WI Gold Sponsors CARW Corporate Sponsor

Corporate Sponsors

NAIOP-WI Silver Sponsors

• Bank Mutual• Outlook Development• TOLD Development• Towne Realty• Wangard Partners

NAIOP-WI Bronze Sponsors

• BCI Group

• Berghammer Construction

• Chicago Title Insurance

•CenterPoint Properties

•GRAEF

• Liberty Property Trust

• Quarles & Brady

• RA Smith

•Sign*A*Rama

• Whyte Hirschboeck Dudek

Retail Presenter

Michele Dugan, CCIMMid America Real Estate

Office Presenters

Daniel J. Jessup, CCIM

Grubb & Ellis/Apex Commercial

Dan Wroblewski

Inland Companies

Industrial Presenters

James M. Young Barry Chavin, SIORColliers-Barry NAI MLG Commercial

NAIOP-WI & CARW Market Update

2009Market Update


Retail Market Update

2009 Market Update - Retail

Michele Dugan, CCIMMid America Real Estate

Retail Market

Milwaukee: Size of the Market

• According to Co-Star, Milwaukee ranks 25th relative to 65 other markets on a national basis.

• Milwaukee has approximately 34,256,969 square feet of shopping center space and we currently have a 11.2% vacancy rate.

Retail Market

New Frontiers

• New areas seeing growth – Grafton, Waukesha and Kenosha.• Why are these markets seeing growth?• Barriers to entry.• Housing starts.• Demand for product.• Repositioning of tenants.• Mid-box & Big box generators.

Retail Market

Grafton Commons - Grafton

• Retailers include: Costco, Kohl’s, PetsMart, Best Buy, Dick’s Sporting Goods, AAA, Steinhafel’s Mattress, Qdoba, Verizon, Michael’s, Kohler Credit Union and Aldi Foods.

Retail Market

Grafton Commons

Retail Market

Shoppes at Fox River - Waukesha

• Retailers include: Target, Pick N Save, CVS, Petco, Maurice’s, Famous Footwear, Chili’s, Five Guys, BW3’s, Noodles & Co, and GameStop

CARW 2009 Retail Deal of the Year

Retail Market

Shoppes at Prairie Ridge - Kenosha

• Retailers include: JC Penny, PetsMart, Dick’s Sporting Goods, Target, Maurice’s, Tazinos, Cousin’s Subs, ULTA Cosmetics, Fed-Ex, Starbucks, Cost Cutters and Verizon Wireless.

Retail Market

Issues Effecting Commercial Retail Markets

1. Financing • Lack of new product – not enough tenants that are looking

to expand or relocate. • Few new developments.• Loan to value (LTV) have increased from 80/20 to 55/45.

2. Declining Store Openings• Starbucks – closed 600 stores in 2008-2009.• Target & Wal-Mart cut back on number of store openings

overall.• Retailers’ focus is improving existing store sales.

Retail Market


3. Retailer Bankruptcy • Increasing supply of retail space

– Former Linen’s and Things - Brookfield

Retail Market


• Circuit City – former Circuit City – South 76th Street

Retail MarketIssues Effecting Commercial Retail Markets

4. Rental Rates

• Declining - over the past year rental rates have declined due to poor retailer sales per square foot.

• Landlords forced to reset rates for tenants to achieve a feasible health ratio.

• Existing tenants continue to struggle because sales per square foot have declined.

• Negative affect on landlords – struggling to pay their mortgage.• Renegotiation of rental rates for existing tenants.

Retail Market

Forecast – 2010 Challenges

• Few or no new shopping center developments.• Additional store closings which will increase the supply of space.• Financing – will continue to be difficult for both development

financing and operational financing.• Repositioning of tenants from B or C centers to A centers.• Mountain of loans coming to maturity in 2010.

Forecast – 2010 Challenges

According to the latest Emerging Trends Report from the Urban Land Institute, “Shopping center owners operate in Darwinian mode. We are seeing triage among the B & C properties” trying to retain tenants.”

Retail Market

Forecast – 2010 Challenges Continued

• Re-use and redevelopment of existing mid and big boxes.• Consumer Confidence – University of Michigan Surveys of

Consumers.

Retail Market


• Consumer Confidence – University of Michigan Surveys of Consumers.

• The Index of Consumer Sentiment was 70.6 in the October 2009 survey, which is substantially above the 57.6 recorded last October.

• Report shared that consumers now put debt reduction and increased savings at the top of their agendas.

• Black Friday – According to the NRF, the average amount each consumer spent dropped to $343.31, down from $372.57 last year; total sales were flat at $42.1 billion.

Retail Market


• Competition for every dollar - $$$.• Cap Rates.

• More foreclosures in commercial real estate.



Commercial Mortgage Defaults

Retail Market

Forecast – 2010 Predictions - Signs of Life

• Discount retailers and quick service restaurants continue to expand.• Retailers that are actively expanding in the Milwaukee Metro:

Retail Market


• Reuse of existing buildings/conversions.• Unconventional uses are backfilling vacant retail spaces office &

medical users.

Retail Market


Example: Former Sentry Foods converted to a Gold’s Gym

Retail Market


Example: Former Steinhafel’s converted to Froedtert & Medical

College of Wisconsin

Before

Retail Market


Example: Former Steinhafel’s converted to Froedtert & Medical

College of Wisconsin

After

Retail Market


Example: Former Sentry Foods – Oak Creek – converted to a TJ Maxx

and Petco

Before

Retail Market


Example: Former Sentry Foods – Oak Creek – converted to a TJ Maxx

and Petco

After

Retail Market

Forecast – 2010 – What you can do….

• Back to the basics.• Survival of the fittest.• React to deals and be open minded.• Think outside the box.• Unconventional times require hard work.• Work with your bank.


Office

Market Update

Office Markets – West & South

Daniel J. Jessup, CCIMGrubb & Ellis/Apex Commercial


Office West Market Update

Office Submarket West 2009 Statistics

Total Universe 7,252,043 Square Feet

Occupied Space 6,126,690 Square Feet

Vacant Space 1,125,353 Square Feet

Vacancy Rate 15.52%

Absorption -268,706 Square Feet

Office Submarket West Historical Statistics

Office Submarket West

2005 2006 2007 2008 2009

Total Universe 6,967,076 7,192,790 7,227,535 5,927,538 7,252,043

Occupied Space 5,889,552 6,288,977 6,210,628 5,058,415 6,126,690

Vacant Space 1,077,524 903,813 1,016,907 869,123 1,125,353

Vacancy Rate 14.58% 12.57% 14.07% 14.66% 15.52%

Office Submarket West Historical Vacancy Rates (%)

0

2

4

6

8

10

12

14

16

2005 2006 2007 2008 2009

Office Submarket WestMajor Lease Transactions

Rausch, Sturm, Israel & Horchik Law Firm – Maplewood Executive Center• 22,957 Square Feet

Travelers Indemnity Insurance – Pinnacle I• 36,500 Square Feet

Herzing University – 555 S. Executive Drive• 13,144 Square Feet

M&I Bank – 235 N. Executive Drive• 44,000 Square Feet


West Submarket Development• ATC Corporate Offices. • Ridgeview Corporate Park. • Single Tenant, Three-story, Class A office building. • 152,000 Square Feet • Completed September, 2009 • Developer: Interstate Partners, Bill Schwartz.


West Submarket Development

• New fire station – Greenfield Avenue.


West Submarket Development

• New fire station – Calhoun Road.


West Submarket Proposed Development

• Former Quebecor site on Bluemound Road finalist for Astronautics Headquarters.


West Submarket Notable Trends

• Run on fire stations.• F.I.R.E tenants are active.


Last Year’s Predictions• Continued soft throughout 2009 with landlords needing to provide

free rent and excess tenant improvement allowance to maintain their face rents.

2010 Outlook• Continued soft throughout 2010 with landlords needing to provide

MORE free rent and MORE excess tenant improvement allowances to maintain their face rents.

• No speculative development. • Any new development preleased.


Office South Market Update

Office Submarket South 2009 Statistics



Vacant Space 306,551 Square Feet

Vacancy Rate 16.64%


Office Submarket South Historical Statistics

Office Submarket South

2005 2006 2007 2008 2009

Total Universe 1,843,725 1,843,725 1,976,451 1,747,829 1,841,125

Occupied Space 1,635,545 1,670,185 1,417,080 1,526,474 1,535,705

Vacant Space 208,180 173,540 177,317 221,355 306,551

Vacancy Rate 11.29% 9.41% 8.97% 12.66% 16.64%

Office Submarket South Historical Vacancy Rates (%)

0

2

4

6

8

10

12

14

16

18

2005 2006 2007 2008 2009


South Submarket New Development

Oakwood Park Commons• 4202 S. Oakwood Park Court, Franklin• Three-story, Class A, multi-tenant office/retail building• 50,427 total square feet• 23,046 square feet available


South Submarket New Development

Liberty Corporate Preserve I• 10050 S. 27th Street, Oak Creek• Single-story, Class A office building• 44,000 total square feet• 33,191 square feet available


Major Lease Transaction

• Lakeshore Medical - 14,773 Square Feet• United States Air Force - 7,000 Square Feet• GSA – 12,100 Square Feet


South Market Information• New Inventory: 94,427 SF – 5.5% increase.

• Absorption: -179,623 SF.

• Smaller average tenant size.

• Several years of available inventory based on historical data.


Last Year’s Predictions

• Increased leasing based on current level of interest, tours and RFP’s.

• 440th Air Force Base land will have a positive impact on the market.

• More talk about and maybe progress on rail.


2010 Outlook• Negative absorption likely to continue – hopefully at a much slower

pace. • Significant lease incentives with minimal velocity. • KRM moving forward – likely no impact in 2010; future impact

significant.• Future of 440th Air Force Base still undecided; significant leasing

obstacles to overcome.

Office Submarket SouthOffice Market 2009 Notable Trends

• Market numbers likely worse than indicated. • Subleases not included.• Tenant excess capacity; 2009 staff reductions. • Excess capacity will slow the office market recovery.

• Landlords offering/preferring short term renewals with no TI costs.• Stable tenants blending and extending; great opportunity to secure

additional space for anticipated growth at reduced rates.• Tenants are EXTREMELY aggressive.• Significant lease incentives.

• Landlords aggressively pursue every prospect.


How do we fix this?

• Four letter word – JOBS!• Elect/Re-Elect pro-business leadership at all levels of government.

Office Markets – North & Central

Dan WroblewskiInland Companies


Office North Market Update

Office Submarket North 2009 Statistics



Vacant Space 922,760 Square Feet

Vacancy Rate 21.37%


Office Submarket North Historical Statistics

Office Submarket North

2005 2006 2007 2008 2009

Total Universe 4,600,905 4,274,894 4,423,995 4,418,909 4,317,719

Occupied Space 3,830,270 3,487,342 3,404,793 3,648,948 3,394,959

Vacant Space 770,635 787,552 1,019,202 769,961 922,760

Vacancy Rate (%) 16.75% 18.42% 23.04% 17.42% 21.37%

Office Submarket North Historical Vacancy Rates (%)

0

5

10

15

20

25

2005 2006 2007 2008 2009

Office Submarket NorthMajor Lease Transactions

Bryant & Stratton College – Bayshore Town Center• 37,000 Square Feet

Restat – Liberty Park Place• 30,000 Square Feet

ARI – Two Park• 20,000 Square Feet

Kelly Services – Liberty Park Place• 20,000 Square Feet


North Submarket Notable Trends

• The North Shore office market is beginning to compete for Downtown tenants more frequently.– Population growth in the North.– Tenants looking to reduce occupancy costs.– Some companies feel they no longer need a downtown office.– Bayshore effect.

• If this trend continues, it will provide an additional avenue in growth for this submarket.


North Submarket Notable Trends

• Park Place submarkets lack of diversification causes constant instability during economic downturns.

•Made up of large users.

•No real small user options.

•Large users flip-flop between Park Place buildings.



• Rental rates remain flat with increased concessions.– Rates down, concessions up.

• Continued positive absorption.– Did not occur.

• Cross pollination between three areas (East, Brown Deer and Northwest). In other words, any of the three areas can see tenants coming from the other 2 (which has not usually occurred).


2010 Outlook

• Rental rates will hold at their already deflated levels with similar lease concessions.

• We will see negative absorption again in 2010 in this submarket. Recovering should begin in Q3/Q4 but not enough to turn to the positive.


Office Central Market Update

Office Submarket Central 2009 Statistics




Vacancy Rate 21.49%


Office Submarket Central Historical Statistics

Office Submarket Central

2005 2006 2007 2008 2009

Total Universe 15,791,221 15,794,356 16,192,174 14,948,519 15,470,375

Occupied Space 13,297,961 12,874,227 12,817,566 12,046,551 12,145,958

Vacant Space 2,493,260 2,920,129 3,374,608 2,901,968 3,324,417

Vacancy Rate 15.79% 18.49% 20.84% 19.41% 21.49%

Office Submarket Central Historical Vacancy Rates (%)

0

5

10

15

20

25

2005 2006 2007 2008 2009


Class Warfare: Class A vs. Class B• Downtown Class A vacancy: 10.46% (True Class A Towers)• Downtown Class B vacancy: 26.50%


Class Warfare: Class A vs. Class B

• Class A rental rates, which dictate the overall market, have been getting compressed over the past 12-18 months.

• Class A buildings are aggressively pursuing Class B tenants.

• Well capitalized Class A buildings have an advantage.

• Class B buildings have had to get extremely aggressive to remain relevant in this market.

• The influx of short-term deals in Class B buildings is simply allowing them to buy time in the hope that a recovery is on its way.


There Are Opportunities• Educational users have been the most active segment in the

Milwaukee market in 2009 leading to over 250,000 SF of new activity market wide.

• There are a number of significant deals in the market today and some large lease expirations coming in the next 12-36 months that could lead to new development.

• The recent flurry of short-term leases will lead to pent-up demand and an active future.



• Downtown: Rates and occupancy will increase for A and well positioned B buildings. The rest of the market will remain slow with concessions for any new tenants.– Occupancy stable in Class A, rates were down.– Class B suffered across the board.

• Mayfair: Rate and TI concessions will continue for the first half to ¾ of 2009 after which landlords will be able to remain more firm as occupancy increases. – Rates & TI concessions present all year. Has yet to stablize.


2010 Outlook• We will hit the bottom in 2010 and start the slow climb back up.

• Rental rates will begin to recover for Class A buildings in the 3Q/4Q, followed by the Class B rates.

• Landlord concessions will continue at current levels throughout 2010.

• We will see flat to slight negative absorption through Q1/Q2 as the economy struggles to recover. We will turn to the positive in the second half of the year.


How do we fix this?• Banks need to begin lending again.

• Aggressive leadership in our local government.

• Post-recession development trend of the past.


Industrial Market Update

Industrial Markets – Central & West

Jim YoungColliers - Barry


Industrial Central

Market Update

Industrial Submarket Central 2009 Statistics




Vacancy Rate 17.35%


Industrial Submarket Central Historical Statistics

Industrial Submarket Central

2005 2006 2007 2008 2009

Total Universe 20,655,165 20,442,487 20,590,963 23,538,615 23,717,565

Occupied Space 17,881,277 18,329,302 18,077,078 19,902,731 19,601,998

Vacant Space 2,733,888 2,093,185 2,513,885 3,635,884 4,115,567

Vacancy Rate 13.24% 10.24% 12.21% 15.45% 17.35%

Industrial Submarket Central Historical Vacancy Rates (%)

0

2

4

6

8

10

12

14

16

18

2005 2006 2007 2008 2009


Central Building Sales

• Primarily comprised of older buildings

• Buyers faced with limited high quality inventory


Goodwill Industries

• 12121 W. Feerick St., Wauwatosa• 65,240 Square Feet• $2,400,000 ($36.79 SF)


SRS Enterprises

• 203 S. Curtis Road, West Allis• 20,360 Square Feet• $1,200,000 ($58.94 SF)


Badger Trailer

• 401 S. 3rd Street & 422 S. 4th Street, Milwaukee• 2 Buildings – 54,273 Square Feet• $1,023,000 ($18.85 SF)


Central Building Leases

• Few noteworthy leases in this submarket – many smaller, short term transactions.

• Quality buildings outperformed older inventory – Suburban markets offered competitive alternatives.


Daily Direct

• 4600 N. 124th Street, Wauwatosa• 55,000 Square Feet• $3.50 psf NNN


ARG Machining

• 4630 S. Brust Ave., St. Francis• 16,050 Square Feet• $8.50 psf NNN


ILLCO, Inc.

• 3930 W. Burnham St., Milwaukee• 13,057 Square Feet• $4.65 psf NNN



• Smaller tenants in the 5,000 to 10,000 SF are looking to buy.– Yes, but paralyzed by a fear of the market.

• Smaller tenants yet, 2,000 to 3,000 SF are moving up from operations they’ve been running out of a garage or makeshift space and looking for functionality and some image (at a reasonable price).– Many remain in garages


Last Year’s Predictions Continued• Some users were having us search to “flee” the market to be West

of 124th Street – specifically for maintaining their business as a profitable venture.– Uncertainty about “sick leave” referendum, high tax climate

and limited quality supply continued to push users N/S/W.

• REDEVELOPMENT – displacement of existing tenants/owners.– Very limited due to condition of development market and

unavailability of money.

• Both real estate and our economy are cyclical (this is a time of opportunity).– Selective opportunity.


2010 Outlook

• Static/absorption.• No new speculative development due to land limitations.• Strategic buys to reposition assets.• Continued migration from central submarket to suburbs.

– Price pressure on central submarket as value of suburban markets “steal” tenant/prospects.

• Thinking positive.– Great values for tenants.– Buildings can be had at a discount.

• Quality product will see activity but at a lower price point.• Concessions.


Industrial West

Market Update

Industrial Submarket West 2009 Statistics




Vacancy Rate 6.99%

Absorption 65,293 Square Feet

Industrial Submarket West Historical Statistics

Industrial Submarket West

2005 2006 2007 2008 2009

Total Universe 27,390,340 28,030,926 27,390,338 27,525,506 29,628,312

Occupied Space 24,663,980 25,328,745 23,373,020 25,865,997 27,557,970

Vacant Space 2,726,350 2,702,181 2,294,839 1,659,509 2,070,342

Vacancy Rate 9.95% 9.64% 8.38% 6.02% 6.99%

Industrial Submarket West Historical Vacancy Rates (%)

0123456789

10

2005 2006 2007 2008 2009


West Building Sales

• 2009 was dominated by user transactions and limited investment sales compared to years past.

• Key transactions – quality real estate.

West Building Sales

Valeo-Prestwick

• 5449 N. Executive Drive, Sussex• 58,134 Square Feet• $3,900,000 ($67.09 SF)

West Building Sales

Painters Union

• S68 W22665 National Ave., Vernon• 63,000 Square Feet• $2,450,000 ($38.89 SF)

West Building Sales

Denali Flavors

• 3100 S. 166th Street, New Berlin• 29,000 Square Feet• $1,415,000 ($48.80 SF)


West Building Leases

• Few large leases done in 2009


Sunburst Apparel

• 340 Maple Ave., Hartland• 35,000 Square Feet• $3.75 psf NNN


Tire Centers, Inc.

• 16800 W. Ryerson Rd., New Berlin• 42,000 Square Feet• $3.95 psf NNN

CARW 2009 Industrial Deal of the Year


Friction Stir Link

• 19775 W. Somer Dr., Brookfield• 35,000 Square Feet



• Cautious Optimism. – Very definitively.

• Best areas for growth will be along the I-94 Corridor – Pewaukee and Pabst Farms.– Pabst has remained stagnant as good opportunities have

become available closer to employee bases – further east.


Last Year’s Predictions Continued

• Slow growth in New Berlin, Muskego and Southern Waukesha

County. – New Berlin/Muskego corridor is slow growth but the one

area where we’re seeing speculative development.• Briohn and Luterbach.• Potential expansion of Buy Season space.• Relatively good leasing activity in the New

Berlin/Muskego area on smaller sites.


2010 Outlook

• Predicated on stabilized economy.• Continued drive to quality product.

– Consolidation and image upgrade.• Continued trend of lower vacancy rate relative to past and other

markets due to submarket constraints.– Limited speculative construction in 2007 and 2008.– Limited planned projects in 2009-2010.– Vacancy could rise to 8-9% if the market overall has not yet

bottomed out.• Still well below other submarket vacancy rates.

– Inconsistent velocity.• Symptom of overall market confidence.


2010 Outlook Continued

• Great deals/compelling reasons to move.– Free rent.– Rental rate concessions.

Industrial Markets – North & South

Barry Chavin, SIORNAI MLG Commercial


Industrial North Market Update

Industrial Submarket North 2009 Statistics




Vacancy Rate 11.1%


Industrial Submarket North Historical Statistics

Industrial Submarket North

2005 2006 2007 2008 2009

Total Universe 37,623,390 38,984,952 41,238,883 40,006,870 40,355,792

Occupied Space 33,565,000 34,996,792 37,336,849 36,766,302 35,881,442

Vacant Space 4,058,380 3,998,160 3,902,034 3,240,568 4,474,350

Vacancy Rate 10.79% 10.23% 9.46% 8.10% 11.1%

Industrial Submarket North Historical Vacancy Rates (%)

0

2

4

6

8

10

12

2005 2006 2007 2008 2009


Now for the 2009 Highlights

It’s over!

Industrial North Notable Transactions

Tramont Properties/Avergeris & Associates

• 3701 N. Humboldt Blvd., Milwaukee• 172,344 Square Feet• $3,000,000 ($17.40 SF)• Brokered by The Dickman Company

Coakley/Mirvac

• 3511 W. Green Tree Rd., Milwaukee• 175,000 Square Feet• $4,257,000 ($24.33 SF)• Brokered by The Dickman Company & Colliers Barry

Industrial North Notable Transactions

Industrial North Notable TransactionsHolland Beauty Flower & Bulb Corp/

Carlisle Tire & Wheel Company

• 8480 N. 87th Street, Milwaukee• 91,626 Square Feet• $2,700,000 ($29.46/SF)• Brokered by CBRE & The Boerke Company

Industrial North Submarket

Last Year’s

Predictions



• In 2009, the industrial market will realize the negative absorption.• Zero to negative absorption.• New construction will be limited to Germantown, West Bend and

Jackson.• Rental concessions will increase as landlords compete for fewer

deals.


2010 Outlook

• We will turn the corner and have positive absorption.• New construction will occur but be limited to a few projects and

owner occupied.• Rental rates will be pressured lower. Landlords will fight hard to

retain tenants and attract new ones.

• 2010 will truly be a TENANT/BUYER MARKET.


Industrial South Market Update

Industrial Submarket South 2009 Statistics




Vacancy Rate 12.1%


Industrial Submarket South Historical Statistics

Industrial Submarket South

2005 2006 2007 2008 2009

Total Universe 26,300,486 26,442,921 26,438,781 27,840,965 24,927,503

Occupied Space 24,567,860 24,150,521 23,225,368 24,372,829 21,902,625

Vacant Space 1,732,626 2,292,400 3,213,413 3,468,168 3,024,878

Vacancy Rate 6.59% 8.67% 12.15% 12.46% 12.10%

Industrial Submarket South Historical Vacancy Rates (%)

0

2

4

6

8

10

12

14

2005 2006 2007 2008 2009

Industrial South Notable Transactions

Former Delphi Plant

• 7929 S. Howell Ave., Oak Creek• 1,500,000 Square Feet

TechTrans/CenterPoint Properties

• 5235 S. International Drive, Cudahy• 37,000 Square Feet• Brokered by CBRE & NAI MLG Commercial



CenterPoint Properties/Liberty Property Trust

• Rexnord Building: 5150 S. International, Drive Cudahy• 150,000 Square Feet• $6,400,000 ($42.67/SF)• Brokered by RFP Commercial


First Industrial/WE Energies

• 7420 S. Howell Avenue, Oak Creek• 81,325 Square Feet• Brokered by CBRE


OPUS North/Yaskawa

• 100 W. Oakwood Road, Oak Creek• 107,249 Square Feet• Brokered by RFP Commercial & The Boerke Company



• South market will remain a tenant market• Allowances and concessions will persist.

• Growth will come from the South.


2010 Outlook

• Absorption will occur.• Very limited new construction as the market will need to absorb

existing space.• Downward pressure on lease rates and an increase in concessions. • Velocity of deals will increase from 2009.


Kenosha Market Update

Industrial Submarket Kenosha 2009 Statistics




Vacancy Rate 14.8%

Absorption 108,062 Square Feet

Ozburn-Hessey Logistics/Liberty Property Trust & Towne Investments

• 8691 109th Street, Pleasant Prairie• 239,376 Square Feet – Brokered by Lee & Associates• 8330 107th Street, Pleasant Prairie• 54,000 Square Feet – Brokered by Lee & Associates

Industrial Submarket Kenosha Notable Transactions

Uline Headquarters

• I-94 and Hwy. Q• 1,100, 000 Square Feet Distribution Center• 200,000 Square Feet Office• CenterPoint Properties Fee Developed Project


Arvato Digital Services/CenterPoint Properties

• 8505 100th Street, Pleasant Prairie• 100,000 Square Feet• CenterPoint Properties leased to Arvato Digital

• 11500 80th Street Kenosha• 400,000 Square Feet• $17,600,000 ($44/SF)• Brokered by Paine-Wetzel


Industrial Submarket Kenosha Market


• Growth• Speculative Development

Industrial Submarket Kenosha

2010 Outlook

• Increase velocity of deals compared to 2009.• Lower lease rates with more concessions.• Landlords will have a “live to fight another day”

attitude.

Industrial Submarket Kenosha

Kenosha Summary

We are going to suck up space!

• Simplicize it all in 2010

2009 Commercial Real Estate

Market UpdatePresented by

Thank You to our Sponsors!

Thank You to our Sponsors!

Corporate Sponsors

NAIOP-WI Gold Sponsors CARW Corporate Sponsor

Corporate Sponsors

NAIOP-WI Silver Sponsors

• Bank Mutual

• Outlook Development

• TOLD Development

• Towne Realty

• Wangard Partners

Corporate Sponsors

NAIOP-WI Bronze Sponsors• BCI Group

• Berghammer Construction

• Chicago Title

• CenterPoint Properties

• GRAEF

• Liberty Property Trust

• Quarles & Brady

• RA Smith

• Sign *A* Rama

• Whyte Hirschboeck Dudek

2010 Market Update

ThursdayDecember 9, 2010

Mark your calendar!

Documents

2009 MASTER Power Point Presentation