June 23, 2016 OVERVIEW - Squarespace · June 23, 2016 OVERVIEW ... , Arizona and the Northwest. Seasonal demand ... more available. 110/150 availability remains extremely tight

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www.producealliance.com

June 23, 2016

OVERVIEW

Avocadosareinshortsupplyandweareseeingextremelyhighprices.Wemayneedtosubsizes.Garlicisalsoinshortsupplywithveryhighprices,aswellasGreensbeans,Romaineheartsandredandgreenpeppers.JumbocarrotsandplugsfromCAarefinallyingoodsupplyandgoodquality.Duetotheheat,weareseeingtipburn,insectsandsunscaldinginromaine,greenleaf,iceberg,andtenderleafproducts.Tomatoesareplentifulandgreatqualityaswellasberries.

MARKET ALERTS

AVOCADOS(EXTREME)

GARLIC(EXTREME)

GREENBEANS(EXTREME)

LEMONS

PEPPERS(GREEN&RED)

ROMAINEHEARTS

GOOD BUYS

STRAWBERRIES-StrawberryButtermilksorbet!2cupsstrawberries,1/3cupagave,1½cupsbuttermilk,3tablespoonsChambord,1tablespoonlemonjuice.Combineinblenderuntilsmoothandfreeze.

MANGOES-Mangoorangeslush!Onelargemango,peeledandcut,10icecubes,1cuporangejuice,2tablespoonslimejuice,1tablespoongingerjuice,agavenectar,1cupsparklingwater.Blendandenjoy!

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WWEEKLY MARKET REVIEW

TRANSPORTATION & WEATHER

TrucksareinsteadysupplyforCalifornia,ArizonaandtheNorthwest.Seasonaldemandformelons,treefruitandgrapeswillcontinuetosupporthigherfreightrates,alongwithincreasingdemandforJuly4thholidayshipments.

AwarmingtrendisonceagainintheweekendforecastforCaliforniaandArizona,followingextremetemperaturesthatoccurredearlierintheweekintheDesertSouthwestdistricts,withhighsreaching122intheCoachellaValleyofCaliforniaonMonday.BythiscomingMonday,113isthehighpredictedforCoachellaastemperaturesriseonceagain.CoastaldistrictsinCentralCaliforniawillseehighsreaching80earlynextweek,with108byWednesdayintheSanJoaquinValley.ThehighelevationregioninCentralMexico(Uruapan,Michoacan),whereavocadosaregrown,willseecontinuedseasonaldailythunderstormactivity,withhighsinthemid70’s.CurrentwarmconditionsintheMid-AtlanticStateswillreversetowardaweekendcoolingtrend,withthunderstormactivityinthemid-weekforecast.

FRUITS & VEGETABLES

AVOCADOSEXTREMEMARKET*

WearebackinademandexceedssupplysituationduetotheongoingshortagesofavocadoscrossingthroughMexicoandlightervolumeoutofCalifornia.Ourcontractgrower,aswellastheentireavocadoindustryforthatmatter,isseeingthemarketcontinuetoseevariancesinproductionandsize.Wewillneedtosubsizeswhereneededifnecessary;andweareinanescalatedmarket.Expectveryhighprices.

Mexico

• ProductionoutofMXhasbeencutinhalfoverthepastweek.• Originalprojectionsforthenextseveralweekswasinthe27-30millionpoundrange.Earlier

thisweekprojectionswereadjusteddownto16millionpounds.Nowwearelookingatbest8-10millionpoundsthisweek.

• Oldcropfruitisdryingupfast!• Reasonforallofthisisoverthepast6monthsexcessiveamountsoffruitwasbeingharvested

whichhasnowcreatedverylimitedsuppliesattheendofthisseasoncomparedtopreviousseasons.

• WearenotexpectingtoseeanyreliefuntiltheUSstartsseeingnewcropinmid-Julyattheearliest.Keepinminditwilltakeatleast2weekstofillupthepipelineoncethevolumestartsflowinginadditiontoadditionalripeningtimeforthislowermaturityfruit.

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• ProjectionsfortheFloraLoca(newcrop)cropareexpectedtocontinuewiththeoveralltrendofsmallfruit.

California

• Californiaispeakinginproductionrightnowatabout19millionpoundsperweek.Wewillseethese#’sfortherestofJulywithadeclinestartinginJuly.

• Thesizecurveispeakingon60’sfollowedby48’s.Extra-largefruitremainsverytight.

Peru

• Peruvianproductionisrampingup.Arrivalswere4.3millionpoundsupfrom3.3millionpoundsinpreviousweeks.Weexpecttosee5-6millionpoundsinthenextfewweeksbeforepeakingat7-8millionpoundsinJuly.ProjectionstotheU.S.havebeenreviseddownfromtheoriginalprojections.MostofthevolumecomingtotheU.S.isprogrambusinesswithverylittlespotmarketvolume.

• Sizecurveispeakingon48’sfollowedby40’s.Smallfruitisverylimited.

Inordertomaintainourcurrentcontracts,weneedtoincreaseourpricesabovethecontractlidforordersloadingonMondayJune20,2016onthehighlightedsizes.WewillmostlikelyneedtoevaluateweeklythroughtheendofJuly,possiblyMid-August.

Pleaseseebelowontheavocadomarket.Weareexperiencingashortsupply.Althoughwesawimprovement,themarketisnowescalated.Wemayneedtosub32ct,60ctor70’sinplaceof48ct.Thepricesarenolongerinescalation.

BANANASUnseasonalstrongdemandhasdevelopedforbananagrowersinCentralAmerica,assupplyhasbeendisruptedfromthePhilippines.

BLUEBERRIESWestcoastberriesareattheirpeak;FloridaandGeorgiahavefinishedfortheseason.SteadyproductioncomingfromNorthCarolina.Qualityisgood.

BLACKBERRIESSteadysupplies,goodqualitywithgreatflavorprofile.TheseasoninCentralMexicoiswindingdown.ProductionvolumeinBajaCaliforniaisincreasing,withsteadyvolumefromWatsonville-Salinas.

RASPBERRIESSteadyvolume.Qualityhasbeenconsistent.Oxnardremainstheprimarydistrict,withSantaMariaandWatsonville-Salinasvolumetrendinghigher.

STRAWBERRIESRecentcool,humidmarinelayerconditionshaveslowedproductionandhaveresultedinasmallerberry-sizeprofileintheshortterm.ProductionwillincreaseduringJune,leadingtorecordvolumeduringthemonthofJuly.AsharpdeclineinsupplyisanticipatedtobegininearlyAugust.

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CALIFORNIA-ARIZONA CITRUS

GRAPEFRUITFinishedinTexas.WeareinCalifornianow.SmallfruitoutofCaliforniaisextremelytightasitispeakingona23ct,whichisbigfruit.Qualityisgood.

LEMONSWearepeakingonthesmallersizeandverylimitedonlargersizes.Themarketisveryactive.WeareseeingshortagesonALLsizes,qualityisgood.

LIMES(PERSIAN)Pricesareimprovingweekly.Qualityisgood.Smalllimesarebecomingmoreandmoreavailable.110/150availabilityremainsextremelytight.Somereliefonthesesizesshouldbeseenin2weeks.Colorandqualityisverygoodatthistime.4thofJulywillbeagoodtimetopromote.

ORANGESWeareseeingthismarketfirmuponsmallersizes.Valsarestartingupwithmostgrowers.

PINEAPPLEDemandisstrong;weareseeinggoodsupplyoflargefruit.Qualityisgood.

CALIFORNIA LETTUCE

GREEN&REDLEAFSuppliesongreenleafarenormal.Weareseeingoccasionalfringeburn.Demandisnormalforredleaf,qualityisgood.Somereportsofinsects.

ICEBERGLETTUCESuppliesarebelowgood.Qualityisgood.Pricesarehavedropped.Somereportsofinsectdamage.

ROMAINESuppliesaresteadyanddemandisgood.Weareseeingsomequalityissues,whichincludelightinternaltipburn,somefringeburnandoccasionalmildew,howeverwedoexpectthistogetbetterthisweek.Somereportsofinsects.

ROMAINEHEARTSESCALATEDMARKET-Suppliesareslightlybelowaverage.Qualityisaverage,weareseeingsometip/fringeburn,andsomeinsectsduetotheheat.Pricesareinescalation.

EASTERN & WESTERN VEGETABLES

GREEN&REDBELLPEPPERSAvailabilityhastightenedintheEastandWestongreenbellpeppers.LateseasonproductioninGeorgiahasdeclined;qualityissueshavecausedareductioninyield.WearewaitingfornewcropharvestinNorthCarolinatogetuptospeed,followedbyNewJerseyandMichigan.TheSouthernSanJoaquinValley(Bakersfield)istheonlysourceintheWest;newcropgreenbellsarenotyetavailableintheCentralSanJoaquinValley.RedbellpeppersareintightsupplyastheharvestinCoachellawindsdown.

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CUCUMBERSGenerallysteadyavailability,althoughthemarketcontinuestobecharacterizedbymoderatepricefluctuation,dependingongrowingregion.NorthCarolinaisnowtheprimarysourceintheEast,withtheharvestinNewJerseyandMichigantobeginnextweek.AvailabilityissteadyfromBajaCalifornia;productionwillincreasebymid-July.

ENGLISHCUCUMBERSSteadyavailability;Canadaistheprimarysupplier.NewcropfromCaliforniaisnowavailable.

GREENBEANSEXTREMEMARKET.TheGeorgiaharvestiswindingdownquickly,creatingasignificantgapinsupply;priceshavemovedsharplytotheupside.WetweatherinNorthCarolinaandVirginiaandcoolweatherinTennesseehavecontributedtothisshortage.GrowersinVirginiaandTennesseewillhaveconsistentsupplybyearlyJuly;untilthentheshortagewillcontinueandpriceswillremainattheextreme.AvailabilityintheWestissteadyandpricesremainfirm;currentlyshippingfromSalinas-Watsonville,FresnoandSouthernCalifornia.

ZUCCHINI&YELLOWSQUASHTherecentheatwaveintheWesthascausedsomeissueswithqualityandyieldinCentralCaliforniacoastaldistrictsonzucchiniandyellowstraightneck;growersareshippingtoclose-indestinationsonly.AvailabilityistightinGeorgiaandNorthCarolina;suppliesareexpectedtoincreasewhennewcropharvestvolumesnormalizefromgrowersinVirginia,NewJerseyandMichigan.

ACORN,BUTTERNUT&SPAGHETTISQUASHSteadyavailabilityfromNorthernMainlandMexicoonacorn;spaghettiandbutternutareintightsupply.

MANGOESSupplyisabundantandpricesarelow.Qualityisgood.

MELONS

Cantaloupe:Extremetemperatureshavesaddledthegrowingregionssincelatelastweekwhichhascurtaileddailyharvestingtoonly5-6hoursdailytoprotectthefieldcrewsfromtheelements.Thishasaffectedtheoverallsupplywithlowernumbersbeingharvestedandheatpumpingthesizingupcausingashortageon12/15s.Arizonaproductionwillcontinueuntilafterthe4thofJuly.TheWestsideregionofCaliforniawillstartproductionnextweekandwillpickupmomentumquicklywithgoodsuppliesanticipatedbyJuly7th.Earlysignsareshowingagoodmixofsizingoncantaloupe.

HoneydewproductioncrossingthroughNogalesisalmostfinishedwhichshouldpushthedomesticmarketupslightly.Aswiththecantaloupes,currentproductionisleaningheaviertothelargerfruit(5s)outofArizona.Westsidefruitshouldseeprimarily6swhentheygetgoing.

HERBS

TheonlyfreshherbthatcontinuestohaveanyissuesisSAVORYanditwillcontinuetoshowsignsoftipburn.CHERVILwasnotaffectedbytheheatasthegrowingregionwasniceandcool;soweareexpectingsuppliestopickupbynextweek.

Pleaseremembertoopenupyourshippingcontainersassoonasyoureceivethemtoletoutany

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warmair.Weareaddingmoreiceandusingathickerlinerwhereneeded.Thebestwaytoinsureyourqualityistoopenthatboxandletthefreshherbsbreathe.

HERB SUPPLIES QUALITY COUNTRYOFORIGIN

Arugula Good Good USA

Basil Good Average USA/MEXICO

OpalBasil Good Good USA/MEXICO

ThaiBasil Good Good USA/MEXICO

BayLeaves Good Good COLUMBIA

Chervil Limited Fair USA

Chives Good Good USA/MEXICO

Cilantro Good Good USA

Dill Good Good USA/MEXICO

Episode Good Good MEXICO

Lemongrass Good Good USA

Marjoram Steady Good USA

Mint Good Good USA

Oregano Good Good USA

ItalianParsley Good Good USA

Rosemary Limited Good USA

Sage Good Good USA/MEXICO

Savory Fair Fair USA

Sorrel Steady Good USA

Tarragon Limited Fair MEXICO

Thyme Good Good USA

LemonThyme Good Good USA

Lavender Good Good USA

LimeLeaves Good Good USA

HoraSanta Good Good USA

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ARTICHOKESWearecurrentlymovingfromHeirloomstoglobeswhichisearlyfortheseason.TheGlobesarenotreadyyetcreatingagapwithveryhighpricesandverylowsupplies.

ARUGULASuppliesofbothbabyandwildarugulaarelight.Qualityisfairwithminormildewandbigsizes.

ASPARAGUSSupplyisgoodonsmallersizes,largersizesaretight.Qualityisgood.

BOKCHOYAvailabilityisgood.

BROCCOLISupplieswillbesteadyforthenextfewweeks.Qualityisshowingsomeissuesfromtheheatsuchasbrowning.Goodgreencolorandtexture.

BRUSSELSPROUTSSteadytostrongersuppliesthisweek.Qualityisgood,butoccasionalinsectdamageandsomediscolorationarestillpresent.Marketwillremainverysteadyanddemandcontinuestobehigh.

CARROTSGreatqualityandgoodsupply!

CAULIFLOWERSuppliesaregood.Qualityisgood.

CELERYPlentifulsupplies,qualityisgood.Weareseeingoccasionalpithmostlyinouterstalksaswellassomeblackheart.

CORNGeorgiacornverypromotablethisweekandnextwithgoodqualityandavailability.Yellow,Bi-ColorandlimitedWhiteCornareallavailable.Nextweek,somesmallstartupareasareinMississippiandNorthCarolinaaswell.WestcoastcornismovinguptotheBrentwoodareawithvolumeincreasingoverthenexttwoweekswhichcouldshowsomereliefinpricinginthewest.

FENNELSuppliesfortheweekwillbegood.

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GARLICEXTREMEMARKET*

Wearefinallynearingtheendofthe2015garlicseason,anditcan’tbeoversoonenough.Asexpected,wewillnotbefullyintoour2016CaliforniaLatevarietyharvestuntilmidtolateJuly.Weexpecttohaveagood/decentcrop.Thereareminorconcernsabouttheclovestructure(i.e.theremaybeahigherpercentagethannormalsmallercloves).However,wearesimplyeagertohavesound,qualitygarlic.Wedidnotobservethedevelopmental/maturityissuesthatweexperiencedwiththe2015season.Plantsformedtheirnormalhead/bulbinallthreeofourmainCaliforniagrowingregions.It’salittleprematuretoknowforcertain,butthe2016Latecropappearstobefairlygoodonbothqualityandlbs.

Moreover,whilebewon’tbefullyintotheLatecropuntillaterinJuly,thereareafewfieldsforprocessingthatfortunatelywillbereadysooner.Wewillbeginharvestingthatacreagethisweekand,aftertheinitiallbs.havedrieddownforpeeling,weplantofullytransitiontoour2016cropsometimetheweekoftheJuly4th.Atthattime,wewillreturnto100%Californiapeeledgarlic.

GINGERChinesegingerisingoodsupplyandofferedatasubstantialdiscountwhencomparedtogingerfromBrazil.

GREENCABBAGEGreencabbagesuppliesremainaverage.Qualityisgood.Pricesaregood.

GREENONIONSPlentifulsuppliesandqualityisgood;weareseeingsomereportsofmildewandinsectpressureinsomeproduct,butmostproductlooksverynice.

KALE(GREEN)Demandissteadyandqualityisverygood.

MACHEAdequateavailability.

NAPAMarketislowerduetoincreasedsupply.Demandisstrong,pricesarelower.Qualityisgoodwithincreasedreportsofinternaldefectsprimarilywithseeders.

PARSLEY(CURLY,ITALIAN)Pricesarenormalandqualityisexcellent.

RADISHESMarketisgoodandpricesarelow,localdealshavestartedmakinganabundantsupply.Qualityisgood.

REDCABBAGEQualityandsizinghasbeengreat,withgoodcolor.Overall,themarketisstrong.

SNOW&SUGARSNAPPEASSnowandsugarsnappeasarestillinhighdemand.Qualityisgood.

BABYSPINACHBabySpinachandClippedSpinachsuppliesarelight.Qualityisfairtogood.Pricesaregood.Somereportsofinsects.

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BUNCHEDSPINACHSupplyisaverage,demandisstrong.Qualityisaverage,weareseeingsomesunscaldingandtipburnhoweverweexpecttoseequalityimprovethisweek.Somereportsofinsects.

ONIONSOnionpricinghasstabilizedasbothNewMexicoandtheSanJoaquinValleyinCaliforniahavebothstartedshipping.TheImperialValleyandNorthTexasregionsshouldfinishuptheirprogramsoverthisweekandnext.Westillexpecttoseemoreelevatedpricingthannormal,butnotquiteasextremeaswehaveseenoverthesepasttwoweeks.

POTATOES(IDAHO)Suppliesoncartonshaveexceededdemandoverthelastweek,andwehaveseensomedecreaseinpricingacrosstheboard.No.2gradepotatoesandsmallsizeconsumerbagpotatoesareingoodsupplyandarecurrentlyexceedingdemand.ThecurrentstoragecropseasonisexpectedtofinishuparoundthefirsttosecondweekinAugust,withnewcropNorkotahsstartingaroundthesametime.

TOMATOES

East

• TheCentralFLregionisfinished.ThegrowingregionnowspreadstothecoastalCarolinas.TheinlandSCregionisnowinproductionwithgoodsuppliesandlowerFOBpricesonallsizes.Goodqualityisexpectedtocontinuethroughtheremainderofthemonth.

• Romas-FOBpricesaredownwithgoodqualityandsupply.• Grapes-FOBpricesremaingenerallysteadythisweekwithupwardpressure.Qualityisvery

good.• Cherries-FOBpricesremaingenerallysteadythisweek.Qualityisverygood.

West/Mexico

• Rounds-Vine-ripescontinuetocrossthroughBajaandMcAllen.• Qualityisgoodacrossthewest.MatureGreensarenowinfullproductionoutofCalifornia,

howeverwillneedcontinuedobservationoftheweatherashigherthannormaltemperatureswillcontinue.FOBpricesremainlowthisweekbutareexpectedtotickupwardnextweekshouldtherebeanydamagefromtheheat.

• Romas-SuppliescontinuetobegoodandFOBpricesarecurrentlylowhoweverwecouldseeanincreaseifthematuregreenmarketisaffected.Qualityisverygood.

• Grapes-SuppliescontinueoutofMcAllenandBaja.Wecontinuetoseesomequalityissues.• Cherries-FOBpricesgenerallysteadywithupwardpressure.Qualityisonlyfair.

TREEFRUITGrapes:ThenewcropharvestisunderwayinMainlandMexicoandtheCoachellaValleyofCalifornia.Flameseedlessareingoodsupply,withtightavailabilityforpremiumqualitygreenseedless(SugaroneVariety)grapes.• Peaches:Yellowfleshareavailableinsmallersizes;availabilityhasimproved.• WhitePeaches:Lightsupplies.• Nectarines:Plentifulavailability.• WhiteNectarines:Limitedavailability.• Apricots:Plentifulsupplies.• Plums:RedandBlackplumsareinlimitedsupply;theearlyseasonharvestisheavytosmall

sizes.• Cherries:SpringrainfallcausedsignificantdamagetotheCaliforniacrop,resultinginquality

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COMMODITY

PRICE

EXPECTEDPRICETREND

QUALITY

Avocados

Avocados-California

Avocados-Mexican HIGH VariesbySize Good

Berries

Blackberries Moderate Steady Good

Blueberries Moderate Steady Good

Raspberries Moderate Steady Good

Strawberries Moderate Steady Good

California-ArizonaCitrus

Grapefruit Moderate Steady Good

Lemons Moderate UP Good

Limes High Steady Excellent

Oranges-Navels Navels Good Good-Navs

Pineapple Moderate Steady Good

CaliforniaLettuce

GreenandRedLeaf Good Down Good

Iceberg Moderate Up Fair

Romaine Moderate Down Good

issuesandupwardsof50percentcroploss.TheCaliforniaseasonwillbefinishedbyearlyJune.• Kiwi:PlentifulavailabilityfornewcropkiwifromChile.

WASHINGTONAPPLES&PEARS

Overalldemandisslowerduetoschoolsbeingout.Suppliesareverytightonsmallsizes,allvarieties&lowergrades,especially125/138size.ExpectthisscenariotocontinuethroughAugust.

VolumescontinuetobeinPremiumgradeonlyUS#1.Availabilityistightacrossallsizes.

Reddelicious,grannies,galasandgoldwillremaintighterthanexpecteduntilnewcropbegins.

Demandonpearsexceedsavailablesuppliesonallsizesandvarieties.Thiswillalsocontinuethroughtheendofsummer.Transportationisnotanissueandfreightratesarefavorable.

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COMMODITY

PRICE

EXPECTEDPRICETREND

QUALITY

RomaineHearts Moderate UP Good

Eastern&WesternVegetables

Cucumbers Moderate Steady Excellent

GreenBeans EXTREME Steady Excellent

GreenBellPeppers High Up Good

RedBellPeppers HIGH UP Good

YellowSquash Moderate UP Good

Zucchini Moderate Steady Good

Grape&TreeFruit

Grapes-GreenSeedless High Down Good

Grapes-RedSeedless ModeratetoHigh Down Good

Plums Moderate Steady Good

Melons

Cantaloupes Good Steady Good

Honeydew High Steady Good

MixedVegetables

Artichokes Good Steady Excellent

Arugula Good Steady Good

Asparagus Good Down Good

BokChoy Good Steady Good

Broccoli Low Steady Good

Carrots High Steady Good

Cauliflower Low Up Good

Celery VeryHigh Down Good

Frisbee Moderate Steady Good

Fennel/Anise Moderate Steady VeryGood

Garlic,Peeled High Steady Good

GreenCabbage High Steady Excellent

GreenOnions Moderate Up Fair

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COMMODITY

PRICE

EXPECTEDPRICETREND

QUALITY

Kale(Green) Low Steady VeryGood

Mache Moderate Steady Good

Napa Moderate Up Fair

Parsley(Curly/Italian) Moderate Up VeryGood

RedCabbage Moderate Steady Excellent

SnowandSugarSnapPeas Steady Up PoortoFair

Spinach(baby) Low Steady Good

Spinach(bunched) Low Steady Good

SpringMix Low Steady Good

Onions

Red Moderate Up Good

White Moderate Lower Good

Yellow Moderate Lower Good

Potatoes(Idaho)

IdahoRussets Variable Steady Good

Tomatoes

Round,Grape Moderate Steady Good

Romas Moderate Steady FairtoGood

WashingtonApples&Pears

RedandGoldenDelicious,GrannySmiths,Pinks

Steady Steady Good

GoldenDelicious,Fuji–NewCrop Steady Steady Good

Galas,Honeycrisp–NewCrop,D’Anjous,BoscPears

High Up Good

BartlettPears Moderate Steady Good

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ASpecialThanksToOur2016NationalConferenceTitle&PlatinumSponsors!

Atlanta

5400LaurelSpringsPkwySuite1002

Suwanee,GA 30024Phone: 678.947.3000

Nashville

OneVantageWaySuiteB-440

Nashville,TN 37228Phone: 615.259.0290

BuffaloGrove100LexingtonDrive

Suite201BuffaloGrove,IL 60089Phone: 847.808.3030

Chicago

230W.HuronStreetSuite200Chicago,IL 60654

Phone: 312.573.7610

Salinas

60WestMarketSuite130

Salinas,CA 93901Phone: 831.455.7800

Documents

June 23, 2016 OVERVIEW - Squarespace · June 23, 2016 OVERVIEW ... , Arizona and the Northwest. Seasonal demand ... more available. 110/150 availability remains extremely tight