Chicago Industrial Real Estate Market Conditions

Presenters & Submarkets

Geoffrey Kasselman, SIOR, LEED AP Executive Managing Director, National Industrial Practice Leader NGKF Introduction NGKF Chicago Overview

Felipe Valdez Research Analyst Chicago Area Overview

Ryan Kehoe Director Far North Near North

Brian Carroll Senior Vice President O’Hare

Melissa Porcelli, LEED Green Associate Senior Associate I-55 Corridor I-80 Corridor

Company Overview

BGC has offices in more major global markets:

New York*

London

Beijing

Chicago

Copenhagen

Dubai

Hong Kong

Houston

Istanbul

Johannesburg

Mexico City

Moscow

Nyon

Paris

Rio de Janeiro

Sao Paulo

Seoul

Singapore

Sydney

Tokyo

Toronto

Zurich

Newmark Grubb Knight Frank is a part of BGC Partners, Inc. (NASDAQ: BGCP), a

leading global brokerage company primarily servicing the world’s wholesale financial

and real estate markets.

BGC’s brokerage business originates from one of the oldest and most established

franchises in the financial services industry, Cantor Fitzgerald, which was founded in 1945

– Over 1,500 brokers and salespeople serve the world’s largest banks and other

institutional clients in brokering approximately 200 different financial products

including rates, credit, foreign exchange, equities and other products across two dozen

locations globally

– Since Newmark Grubb Knight Frank became part of BGC, real estate services has

come to represent approximately one-third of BGC’s revenues

– BGC had approximately $1.8 billion in revenues in 2012

– BGC's clients include many of the world's largest banks, broker-dealers, investment

banks, trading firms, hedge funds, governments, corporations, property owners, real

estate developers, and investment firms

* Corporate Headquarters

Company Overview

20 04

BGC Partners LP, a wholesale voice brokerage Business, is created

05

Maxcor/ Eurobrokers New York, London

and Tokyo Rates ~325 brokers ETC Pollock 70 Brokers in Paris Rates, Credit

Aurel Leven ~75 brokers in Paris Equity derivatives AS Menkul Istanbul Turkish equities and

electronic bonds

06 07

Marex Financial (a)

London, Johannesburg Equity derivatives

emerging markets

08

Radix Energy Singapore OTC Energy

10

Mint Partners/ Mint Equities (b)

London Mainly Equities,

also Credit ~100 brokers

11

Newmark Knight Frank (c)

Across United States 425 Brokers Commercial RE

09

Liquidez Brazil 70 brokers FX and Rates

12

Grubb & Ellis (d)

Across United States Property & Facilities

Management Commercial RE ≈ 400 brokers

13

Sterling United Kingdom Rates Ginalfi Paris Credit, Swaps Smith Mack Philadelphia Commercial RE Frederick Ross Denver Commercial RE

14

Cornish & Carey Commercial San Francisco Commercial RE

Real Estate Services

Financial Services

(a) BGC acquired Marex Financial’s emerging markets business

(b) BGC acquired various assets and businesses of Mint Partners and Mint Equities

(c) BGC acquired all of the outstanding shares of Newmark & Company Real Estate, Inc., which operates as “Newmark Knight Frank” in the United States and is associated with London-based Knight Frank

(d) BGC acquired substantially all the assets of Grubb & Ellis.

Company Overview

BGC Partners, Cantor Fitzgerald, and Newmark Grubb Knight Frank

Company Overview

BGC Partners Inc., Newmark Grubb Knight Frank, Cantor Fitzgerald and Cantor Commercial Real Estate

Newmark Grubb Knight Frank is an important part of BGC’s portfolio as BGC continues to

support, grow and invest in the real estate services segment

NGKF’s connection to BGC provides access to an extensive roster of financial services

relationships and cross-selling opportunities

– CCRE, our lending business, has originated $5.4 billion of loans since its inception in 2010

– CCRE’s experience and client base creates cross-selling opportunities for NGKF

The integration of our debt and equity placement expertise throughout NGKF allows us to

offer owner and developer clients help with acquisition financing, construction financing, or

recapitalizing their own real estate

Support from a substantial research team across each entity

NGKF Industrial Practice

Tenant and Landlord Representation

Buyer and Seller Representation

Property Management

Strategic Planning

Building Repositioning

Facility Assessment

Logistics Evaluation

Project and Construction Management

Financial and Economic Incentives

Financial Analysis

Drive Time Studies, Geographic Searches, and

Zoning Issues

Operational Efficiency

Sustainability

Technology and Innovation

300+ NGKF Industrial Professionals

in the United States

117 NGKF Industrial Professionals

Worldwide through our

partnership with Knight Frank

Recruiting Spotlight

Greg Wright Senior Managing Director

Chicago, IL

34 years in industrial real

estate sales

Track record of over $900

million in completed

transactions

Average sales and listings

annually of 1,000,000 SF

Services Overview

NGKF Industrial - Chicago

Date Type City St Size

01/2014 Direct Lease Bedford Park Il 270,789 SF

02/2014 Direct Lease Schaumburg IL 4,570 SF

02/2014 Direct Lease Schiller Park IL 16,500 SF

03/2014 Lease Bolingbrook IL 45,220 SF

03/2014 Lease Franklin Park IL 660 SF

03/2014 Lease Franklin Park IL 3,009 SF

03/2014 Lease Franklin Park IL 375 SF

03/2014 User Sale Chicago IL 1,100 SF

03/2014 Direct Lease Elk Grove Village IL 21,584 SF

04/2014 Lease Extension Milwaukee WI 182,250 SF

04/2014 Direct Lease Rosemont IL 6,084 SF

04/2014 User Sale Chicago Ridge IL 65,000 SF

04/2014 User Sale Wood Dale IL 116,400 SF

04/2014 Lease Franklin Park IL 2,470 SF

05/2014 Lease Elgin IL 54,153 SF

05/2014 User Sale Schaumburg IL 15,000 SF

05/2014 Direct Lease Elgin IL 3,400 SF

05/2014 Lease Streamwood IL 6,049 SF

05/2014 Lease Melrose Park IL 150,000 SF

Total +/- 1 Million SF

Market Presence

Total volume of approximately 1 million SF through

18 completed transactions since January 2014

37 active listings for industrial properties which

represents approximately 2.0 million square feet of

availability

11 active listings for miscellaneous property types

YTD Transactions

NGKF Industrial - Chicago

1001 N. Mittel Drive Wood Dale, IL

116,140-square-foot single-tenant Class-A

industrial building sale transaction completed in

May 2014

Bristol Group completed its due diligence and

funded the acquisition within a four-week timeline

The seller was exclusively represented by Ken

Szady, Brian Carroll and Tom Gath of Newmark

Grubb Knight Frank

Bristol Group has retained the brokerage services

of Brian Carroll and Tom Gath at Newmark Grubb

Knight Frank to market the building

Chicago Industrial OVERVIEW

Chicago Industrial Market Map

Chicago Industrial Market

Q1 Market Overview

Total Inventory 1,064,216,228 SF

Under Construction 9,786,163 SF

Total Vacancy 8.90%

1Q14 Absorption 1,389,612 SF

Total Asking Rent $4.62/SF Net

Warehouse/Dist Asking Rent $4.04/SF Net

4%

6%

8%

10%

12%

14%

$3.40

$3.80

$4.20

$4.60

$5.00

$5.40

1Q09 1Q10 1Q11 1Q12 1Q13 1Q14

Asking Rent (Price/SF) Vacancy (%)

Asking Rent & Vacancy

-4,000,000

-2,000,000

0

2,000,000

4,000,000

6,000,000

1Q09 1Q10 1Q11 1Q12 1Q13 1Q14

Net Absorption (SF)

Absorption

0.0

4.0

8.0

12.0

16.0

20.0

2009 2010 2011 2012 2013 2014 2015

Deliveries Under Construction Projected Deliveries

Square Feet, millions

Construction & Deliveries

Far North & Near North

Submarket: Far North

Q1 Market Overview

Total Inventory 100,477,931 SF

Under Construction 2,683,370 SF

Total Vacancy 9.90%

1Q14 Absorption 220,261 SF

Total Asking Rent $5.16/SF Net

Warehouse/Dist Asking Rent $4.49/SF Net

Net Absorption

978,350

-24,754

205,723

1,200,449

465,437

-224,743

688,263

534,357 395,149

-500,000

-250,000

0

250,000

500,000

750,000

1,000,000

1,250,000

1Q12 1Q13 1Q14

Net Absorption (SF)

Submarket: Far North

Notable Lease Transactions (YTD)

Address 3818 Grandville Avenue Gurnee, IL 60031

Tenant Metropolitan Graphic Arts

Size 183,415 SF

Address 3818 Grandville Avenue Gurnee, IL 60031

Tenant Woodland Foods

Size 155,325 SF

Address 28160 N. Keith Drive Lake Forest, IL 60045

Tenant Popcorn Factory

Size 77,294 SF

1

2

3 3

1 2

Submarket: Near North

Q1 Market Overview

Total Inventory 54,415,727 SF

Under Construction 0 SF

Total Vacancy 6.50%

1Q14 Absorption 85,067 SF

Total Asking Rent $6.02/SF Net

Warehouse/Dist Asking Rent $5.16/SF Net

Net Absorption

115,368 71,064

178,159

337,434

-371,956

189,144 237,015

122,778 85,067

-500,000

-400,000

-300,000

-200,000

-100,000

0

100,000

200,000

300,000

400,000

500,000

1Q12 1Q13 1Q14

Net Absorption (SF)

Submarket: Near North

Notable Lease Transactions (YTD)

Address 730-770 S. Acco Plaza Wheeling, IL 60090

Tenant Segerdahl Graphics Inc.

Size 285,880 SF

Address 7410-7420 N. Lehigh Niles, IL 60714

Tenant SPC

Size 138,161 SF

Address 1852-1854 Elmdale Avenue Glenview, IL 60026

Tenant Crimson AV

Size 54,884 SF

1

2

3

3

1

2

O'Hare Submarket

Submarket: O’Hare

Q1 Market Overview

Total Inventory 120,141,858 SF

Under Construction 765,975 SF

Total Vacancy 7.30%

1Q14 Absorption 515,336 SF

Total Asking Rent $5.63/SF Net

Warehouse/Dist Asking Rent $4.66/SF Net

Net Absorption

-447,804

719,585

355,022 266,944

758,206

1,014,237

753,901 718,706

515,336

-600,000

-300,000

0

300,000

600,000

900,000

1,200,000

1Q12 1Q13 1Q14

Net Absorption (SF)

Submarket: O’Hare

Notable Lease Transactions (YTD)

Address 591 Supreme Bensenville, IL 60106

Tenant Boise Cascade

Size 201,395 SF

Address 950-990 Supreme Bensenville, IL 60106

Tenant Channel Distribution

Size 201,011 SF

Address 1501 Michael Wood Dale, IL 60191

Tenant Hyper Microsystems Inc.

Size 174,000 SF

1

2

3

1 2

3

Address 1285 Hamilton Parkway Itasca, IL 60143

Tenant Diversified Labeling

Size 171,000 SF

4

Notable Land Transactions (YTD)

Location Elk Grove Village

Buyer Dupont Fabros

Use Data Center

Size 14 Acres

Sale Price $20/SF

Location Elk Grove Village

Buyer Forsythe Group

Use Data Center

Size 15.2 Acres

Sale Price $19/SF

4

I-55 & I-80 Corridors

Submarket: I-55 Corridor

Q1 Market Overview

Total Inventory 91,956,041 SF

Under Construction 3,367,765 SF

Total Vacancy 8.60%

1Q14 Absorption -733,016 SF

Total Asking Rent $4.53/SF Net

Warehouse/Dist Asking Rent $3.98/SF Net

Net Absorption

-264,744

488,594

1,023,357

158,141

549,227

275,333 443,249

-585,450 -733,016

-1,200,000

-800,000

-400,000

0

400,000

800,000

1,200,000

1Q12 1Q13 1Q14

Net Absorption (SF)

Submarket: I-55 Corridor

Notable Lease Transactions (YTD)

Address 901 Carlow Drive Bolingbrook, IL 60490

Tenant Ferrara Pan Candy

Size 747,152 SF

Address 1450 Remington Boulevard Bolingbrook, IL 60490

Tenant Midwest Warehouse & Distribution

Size 650,494 SF

Address 715 Theodore Court Romeoville, IL

Tenant Innotrac Corporation

Size 421,361 SF

1

2

3

1

2

3

Submarket: I-80 Corridor

Q1 Market Overview

Total Inventory 66,352,757 SF

Under Construction 1,848,600 SF

Total Vacancy 15.20%

1Q14 Absorption 632,817 SF

Total Asking Rent $3.44/SF Net

Warehouse/Dist Asking Rent $3.20/SF Net

Net Absorption

85,890 329,467

-37,818 -283,572

400,981

-651,881

441,033

2,237,964

632,817

-1,000,000

-500,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

1Q12 1Q13 1Q14

Net Absorption (SF)

Submarket: I-55 Corridor

Notable Lease Transactions (YTD)

Address 26416 Centerpoint Drive Elwood, IL 60421

Tenant Partners

Size 440,000 SF

Address 1515 Olympic Boulevard Joliet, IL 60431

Tenant Falken Tire

Size 214,600 SF

Address 3451 S. Chicago Street Joliet, IL

Tenant Otis Elevator

Size 209,179 SF

1

2

3

1

2

3

Submarket: I-80 Corridor

Notable Lease Transactions (YTD)

Address 26416 Centerpoint Way Elwood, IL 60421

Tenant Partners

Size 440,000 SF

Address 1515 Olympic Boulevard Joliet, IL 60431

Tenant Falken Tire

Size 214,600 SF

Address 3451 S. Chicago Street Joliet, IL

Tenant Otis Elevator

Size 209,179 SF

1

2

3

1

2

3

8750 W. Bryn Mawr Suite 700

Chicago, IL 60631 773.957.1400