Industrial Market Overview September 2005prepared for

Presented by

Raymond A. StacheSenior DirectorCushman & Wakefield

INDUSTRIAL MARKET OVERVIEW

Drivers

Mid-Year Statistics

Trends Bulk Warehouse Market User Sales Market Flex Market Investment Sales

Conclusion

Table of Contents

INDUSTRIAL MARKET OVERVIEW

■ Construction Costs 500,000 sf shell 2002 $12.00 psf

500,000 sf shell 2004 $14.00 psf

500,000 sf shell 2005 $16.00 psf

- Anticipate further increases

- Steel: edging back up

- Concrete: 10% higher by year end

- Paving: 10% in the past 3 months

- Roofing Material/Insulation: up 40% over 2 years

■ Available Land $ Rock, Topography, Water, Residential Development

■ Demand in all categories (excluding flex industrial)

■ Available Capital

■ Lease Rates

■ Infrastructure Constraints Highway Traffic, Ports, Rail, and Intermodal Yards, Hartsfield

DriversFactors Effecting the Market

INDUSTRIAL MARKET OVERVIEW

■ YTD Leasing Activity

2Q 2005 13,642,524 sf

2Q 2004 12,017,408 sf

TOTAL Leasing 2004 24,500,000 sf

■ YTD Overall Absorption

2Q 2005 6,481,026 sf

2Q 2004 3,034,781 sf

TOTAL Overall Absorption 2004 10,700,000 sf

■ Record Overall Absorption

1999 14,700,000 sf

2005 Mid-Year Statistics

INDUSTRIAL MARKET OVERVIEW

BULK WAREHOUSE MARKET

■ Definition

> 300,000 Square Feet; 30‘ Clear

■ Available/Under Construction– 20 buildings– 9,700,000 sf– Average size 461,213 sf

■ Proposed Buildings– 14 Buildings– 8,750,000 sf– Average size 625,000 sf

TrendsTrends

INDUSTRIAL MARKET OVERVIEW

REVIEW CAMP CREEK CORRIDOR

■ Land ConstraintsRock, Topography, Water, Residential

Development

■ 3-year Absorption of Bulk8,000,000 Square Feet in 3 Years15 Transactions

■ Annual Absorption2,666,660 Per Year

■ Land Inventory906 Acres; 8,900,000 Square Feet; 3.34 Years

INDUSTRIAL MARKET OVERVIEW

NORTHEAST I-85 USER SALES MARKET

GroupCount of #

SalesAverage of Building SF

Average of Price Per SF

(Gross)

2004

< 50,000 sf 62 20,772 63.33

> 100,000 sf 32 206,263 30.57

50,000 – 100,000 sf 28 72,416 30.72

Total 122 81,278 47.25

2005

< 50,000 sf 50 18,857 76.58

> 100,000 sf 11 187,509 25.24

50,000 – 100,000 sf 27 72,431 37.58

Total 88 56,376 58.20

Average Price Per SF 50.49

INDUSTRIAL MARKET OVERVIEW

FLEX MARKET (Greater than 30% Office)

■ Continues to Struggle

■ Competing with Class B Office at $13.00 - $15.00 Full Service Gross

■ Expect through 2006 time needed to correct the market

INDUSTRIAL MARKET OVERVIEW

INVESTMENT SALES (Greater than $5 million)

■ TOTAL Industrial Investment Sales 2004» 31 Transactions» $386,574,000 Total Consideration» 9,060,000 SF» Average $43.00 PSF

■ YTD Industrial Investment Sales 2005

» 27 Transactions» $830,000,000 Total Consideration» 22,599,000 SF» Average $36.73 PSF

INDUSTRIAL MARKET OVERVIEW

375,000 SF Result:

Built in 2003 12 Bidders

Tenant – Bosch 4 Finalists

Lease – 4 years flat over term 7 CAP

Closed in 75 days from initial package mailing

$40.00 PSF

Bosch Distribution Center

Continued Optimism

“More Good Things to Come”

Conclusion

INDUSTRIAL MARKET OVERVIEW

INDUSTRIAL MARKET OVERVIEW

Global Coverage

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