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Hartford Hartford Office and Industrial Markets Connecticut Commercial Real Estate Conference March 6, 2012 BARTRAM & COCHRAN

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National Industrial Trends BARTRAM & COCHRAN

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National Industrial Vacancy BARTRAM & COCHRAN

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National Industrial Rents BARTRAM & COCHRAN

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Hartford Industrial Market 89,000,000 97,000,000 SF Market Major firms are relying on CoStar for data Functionally obsolete buildings distort the statistics Industrial vacancy of 9.5 to 13.3% Market has swung from negative absorption to positive 400,000 SF of construction projected from 2012-15 Market cycle last phase of recession. Good buildings in recovery. Six- seven years for the market to balance 8.5 to 9% going in cap rate for industrial/ manufacturing BARTRAM & COCHRAN

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Industrial Inventory BARTRAM & COCHRAN

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Industrial Major Leases TenantAddressLocationSF Coca Cola Company555 Taylor Road Enfield278,207 Fostick Corporation129 Worthington Berlin250,000 InfoShred LLC ( short term temp)8 Craftsman Road East Windsor75,000 Fletcher-Terry Company, LLC91 Clarke Drive East Berlin45,000 Allstate Insurance Company15 Bradley Park Rd East Granby40,420 Environmental Office Solutions130 Prestige Park Rd East Hartford37,044 ATG Rehab65 Inwood Rd Rocky Hill23,420 HD Supply Waterworks LtdOne Hartford Sq. New Britain21,035 Oxford Performance Materials30 South Satellite Rd South Windsor16,193 Northeast Air Time Gymnastics215 Moody Road Enfield16,000 Thermo Fischer Scientific2-8 Progress Drive Manchester15,000 BARTRAM & COCHRAN

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Industrial Major Renewals TenantAddressCitySF FedEx Ground Packing Systems758 Rainbow RoadWindsor105,300 JDS Uniphase Corporation45 Griffin Road S.Bloomfield84,000 Gifted Expressions60 Prestige Park RdEast Hartford47,920 Keystone Automotive Industries50 Utopia RoadManchester45,000 Lego Systems, Inc555 Taylor RoadEnfield30,000 Adaptive Optics Associates121-141 Prestige ParkEast Hartford27,581 Superior Electric Holding Group28 Spring LaneFarmington27,097 Cronin and Company LLC50 Nye RoadGlastonbury22,557 DHL Express USA, Inc.141 South StreetWest Hartford22,000 Quality Inspection Services275 Progress DriveManchester18,000 Pilot Freight Services, Inc.25-27 Kripes RoadEast Granby16,320 BARTRAM & COCHRAN

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Top Industrial Sales BuildingCitySFPrice$ / SF 1 Hartford SquareNew Britain564,000$3,500,000$6 1 Griffin Road South (LESRO)Bloomfield268,285 $4,292,415 $16 83 Gerber Rd (TicketNetwork)S. Windsor194,000$7,000,000$36 180 Moody RdEnfield166,000$2,200,000$13 231 Weston StreetHartford119,790$1,100,000$9 265 Rev. Moody Overpass (Restaurant Depot)Hartford103,680 $4,100,000 $40 90 Meadow RdWindsor64,000$2,220,000$34 101 Industrial Park RoadVernon40,000 $779,500 $19.50 10 Eastern Park RoadEast Hartford40,000$1,200,000$30 97 Hammer Mill RoadRocky Hill28,450 $1,150,000 $40 99 Hammer Mill RoadRocky Hill27,500 $1,450,000$53 170 Weston StreetHartford26,576$1,325,000$50 BARTRAM & COCHRAN

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National Office Trends BARTRAM & COCHRAN

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National Office CBD Vacancy BARTRAM & COCHRAN

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National Office Class A Asking Rates BARTRAM & COCHRAN

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Hartford Office Market 25,000,000 SF multi-tenant building market Slowly improving activity going from an average loss of 1,900,000 SF a year for three years to projected (depending on those interviewed) sharply slower losses to positive absorption No major new-to-market leases Market cycle: last phase of the recession, poised for recovery Stabilized market 7-8 years for CBD, 5 years for suburbs Going in cap rate 9.5% (CBD), 8.75% (suburban) BARTRAM & COCHRAN

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Hartford Office 4Q11 MarketRentable (SF)Vacancy Rate (%) Sublease Rate (%) 2Q11 YTD Leasing Average Asking Rate ($/ SF/ YR) CBD8,000,00028%0.70%-85,000$21.00 Outside CBD2,200,00010%0.25%5,000$18.50 City Total10,200,00025%0.60%-80,000$20.30 North3,235,00024%2.30%-39,000$16.00 West5,900,00018.5%4.20%-45,000$20.25 South3,200,00020.8%0.60%78,000$18.50 East3,167,59012%0.40%-80,000$20.00 Overall25,670,00022%1.88%-166,000$19.25 BARTRAM & COCHRAN

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Impact of Owner-Occupied TypeSF% Vacancy Multi-tenant25,670,00022% Owner occupied12,500,000? Total38,170,000 BARTRAM & COCHRAN

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2011 Major Office Leases TenantLocationCitySF UBS Realty Investors10 State House SquareHartford48,279 Paychex Corporation714 Brook StreetRocky Hill32,351 Marsh USA20 Church StreetHartford24,647 Pert GroupThe ExchangeFarmington23,000 Ct Children's Medical Center500 Enterprise DriveRocky Hill22,071 Hartford HealthcareOne State StreetHartford22,000 Ovation Benefits5 Batterson Park RdFarmington19,542 Hangar Prosthetics & Orthotics10 County Line RoadCromwell14,220 Jade Marketing Group, LLC65 Memorial RoadWest Hartford11,758 Integralis Inc.310 West Newberry RoadBloomfield11,361 ATG - Connecticut Inc.1111 Cromwell AvenueRocky Hill11,170 Ameriprise FinancialCityPlace IIHartford10,000 AH HarrisCorporate Center WestWest Hartford10,000 BARTRAM & COCHRAN

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2011 Major Office Renewals / Expansions TenantLocationCitySF City of Hartford960 Main StreetHartford66,281 Conning & Company755 Main StreetHartford55,624 ValueOptions500 EnterpriseRocky Hill44,675 Tymetrix Inc.20 ChurchHartford24,647 Ct Children's Med. Center60 HartlandEast Hartford40,812 American Express242 Trumbull StreetHartford21,465 Stubhub, Inc.2 Gateway BlvdEast Granby20,457 Carousel Industries10 Griffin Road N.Windsor18,000 Legal Aid 999 AsylumHartford18,000 Grump GroupFarm GlenFarmington17,684 Corporate Translations77 Hartland StreetEast Hartford17,330 Dechert90 State House Sq.Hartford15,544 BARTRAM & COCHRAN

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Office Sales AddressCitySFPrice$ / SF 90-100 Avon MeadowAvon20,000$900,000$45 1577 New Britain AvenueFarmington21,000$1,500,000$71 135 South RoadFarmington35,000$2,800,000$80 100 Western BlvdGlastonbury25,537$3,400,000$133 99 Pratt & 196 TrumbullHartford100,000$1,000,000$10 Talcott PlazaHartford103,000$1,230,000$12 1 Acmat PlazaNew Britain75,000$2,800,000$37 95 Glastonbury BlvdGlastonbury148,000$15,500,000$104 BARTRAM & COCHRAN

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Academic TenantAddressCityTypeSF CCMC300 John Downey Dr.New BritainNew Lease48,000 CRECU of H Asylum Avenue Campus HartfordRenewal & Expansion 26,208 St Joseph's College 229 Trumbull StHartfordExpansion10,000 BARTRAM & COCHRAN

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Institutional CREC buying land/ building/ leasing/ renovating seven magnet schools, including Avon, Hartford, Enfield and New Britain Hartford Hospital building parking garage UCONN Medical $1 billion expansion Jackson Lab $1.1 billion development State considering buying office buildings BARTRAM & COCHRAN

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Jackson Lab BARTRAM & COCHRAN

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Bio-Science State to create new bio-science enterprise zones in: Hartford Farmington New Britain Plainville Bristol BARTRAM & COCHRAN

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Sources CBRE Colliers CoStar Group Cushman & Wakefield Grubb & Ellis Integra Jones Lang LaSalle RM Bradley Sentry Commercial S/L/A/M Collaborative BARTRAM & COCHRAN

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Thank You Maura M. Cochran, CRE, SIOR BARTRAM & COCHRAN 64 Pratt Street Hartford, CT 06103 860 549-5000 x 1 mcochran@bartramandcochran.com BARTRAM & COCHRAN