Minneapolis Industrial Report

8/14/2019 Minneapolis Industrial Report

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Minneapolis Industrial MarketY E A R - E N D 2 0 0 9

The CoStar

Industrial Report


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Minneapolis Industrial Market

2010 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT A

YEAR-END 2009 MINNEAPOLIS

Table of Contents

Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A

Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B

Terms & Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CMarket Highlights & Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

CoStar Markets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Employment & Tenant Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Employment & Unemployment AnalysisInventory & Development AnalysisSelect Top DeliveriesSelect Top Under Construction Properties

Figures at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Figures at a Glance by Building Type & MarketHistorical Figures at a GlanceLeasing Activity AnalysisSelect Top Lease Transactions

Sales Activity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Sales Activity AnalysisSelect Top Sales TransactionsSelect Same Building SalesSelect Land Sales

Analysis of Individual CoStar Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Chisago County MarketEast MarketIsanti County MarketMidway MarketMinneapolis MarketNorth Central MarketNorthwest MarketPierce County MarketSherburne County MarketSouth Central MarketSouthwest MarketSt Croix County MarketSt Paul MarketStearns County MarketWright County Market


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B THE COSTAR INDUSTRIAL REPORT 2010 COSTAR GROUP, INC.

MINNEAPOLIS YEAR-END 2009

Methodology

The CoStar Industrial Report calculates Industrial statistics using CoStar Group's base of existing,under construction and under renovation Industrial buildings in each given metropolitan area. AllIndustrial building types are included, including warehouse, flex / research & development, distribution,manufacturing, industrial showroom, and service buildings, in both single-tenant and multi-tenantbuildings, including owner-occupied buildings. CoStar Group's national database includes approximately69.1 billion square feet of coverage in 2.8 million properties. All rental rates reported in the CoStarIndustrial Report are calculated using the quoted rental rate for each property.

Copyright 2010 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of theinformation contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness orcompleteness of the information. The publication is provided as is and CoStar expressly disclaims any guarantees, representations orwarranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

CoStar Group, Inc.

2 Bethesda Metro Center Bethesda, MD USA 20814 (800) 204-5960 www.costar.com NASDAQ: CSGP

For information on subscribing to CoStars other products and services, please contact us at

1-877-7COSTAR, or visit our web site at www.costar.com


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2010 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT C


Terms & Definitions

Availability Rate: The ratio of available space to total rentablespace, calculated by dividing the total available square feet by thetotal rentable square feet.

Available Space: The total amount of space that is currentlybeing marketed as available for lease in a given time period. Itincludes any space that is available, regardless of whether thespace is vacant, occupied, available for sublease, or available ata future date.

Build-to-Suit: A term describing a particular property, developedspecifically for a certain tenant to occupy, with structural features,systems, or improvement work designed specifically for the needsof that tenant. A build-to-suit can be leased or owned by the ten-ant. In a leased build-to-suit, a tenant will usually have a longterm lease on the space.

Buyer: The individual, group, company, or entity that has pur-chased a commercial real estate asset.

Cap Rate: Short for capitalization rate. The Cap Rate is a calcula-tion that reflects the relationship between one years net operating

income and the current market value of a particular property.The Cap Rate is calculated by dividing the annual net operatingincome by the sales price (or asking sales price).

CBD: Abbreviation for Central Business District. (See also:Central Business District)

Central Business District: The designations of Central BusinessDistrict (CBD) and Suburban refer to a particular geographic areawithin a metropolitan statistical area (MSA) describing the levelof real estate development found there. The CBD is characterizedby a high density, well organized core within the largest city of agiven MSA.

Class A: A classification used to describe buildings that generallyqualify as extremely desirable investment-grade properties andcommand the highest rents or sale prices compared to otherbuildings in the same market. Such buildings are well locatedand provide efficient tenant layouts as well as high quality, and insome buildings, one-of-a-kind floor plans. They can be an archi-tectural or historical landmark designed by prominent architects.These buildings contain a modern mechanical system, and haveabove-average maintenance and management as well as the bestquality materials and workmanship in their trim and interior fit-tings. They are generally the most attractive and eagerly soughtby investors willing to pay a premium for quality.

Class B: A classification used to describe buildings that generallyqualify as a more speculative investment, and as such, commandlower rents or sale prices compared to Class A properties. Suchbuildings offer utilitarian space without special attractions, andhave ordinary design, if new or fairly new; good to excellentdesign if an older non-landmark building. These buildings typical-ly have average to good maintenance, management and tenants.They are less appealing to tenants than Class A properties, andmay be deficient in a number of respects including floor plans,

condition and facilities. They lack prestige and must dependchiefly on a lower price to attract tenants and investors.

Class C: A classification used to describe buildings that gener-ally qualify as no-frills, older buildings that offer basic space andcommand lower rents or sale prices compared to other buildingsin the same market. Such buildings typically have below-averagemaintenance and management, and could have mixed or lowtenant prestige, inferior elevators, and/or mechanical/electricalsystems. These buildings lack prestige and must depend chieflyon a lower price to attract tenants and investors.

Construction Starts: Buildings that began construction during aspecific period of time. (See also: Deliveries)

Contiguous Blocks of Space: Space within a building that is, or isable to be joined together into a single contiguous space.

Deliveries:Buildings that complete construction during a specifiedperiod of time. In order for space to be considered delivered, acertificate of occupancy must have been issued for the property.

Delivery Date: The date a building completes construction andreceives a certificate of occupancy.

Developer:The company, entity or individual that transforms rawland to improved property by use of labor, capital and entrepre-neurial efforts.

Direct Space: Space that is being offered for lease directly fromthe landlord or owner of a building, as opposed to space beingoffered in a building by another tenant (or broker of a tenant)trying to sublet a space that has already been leased.

Existing Inventory: The square footage of buildings that havereceived a certificate of occupancy and are able to be occupiedby tenants. It does not include space in buildings that are eitherplanned, under construction or under renovation.

Flex Building: A type of building designed to be versatile, whichmay be used in combination with office (corporate headquarters),

research and development, quasi-retail sales, and including butnot limited to industrial, warehouse, and distribution uses. A typi-cal flex building will be one or two stories with at least half of therentable area being used as office space, have ceiling heights of 16feet or less, and have some type of drive-in door, even though thedoor may be glassed in or sealed off.

Full Service Rental Rate: Rental rates that include all operatingexpenses such as utilities, electricity, janitorial services, taxes andinsurance.

Gross Absorption: The total change in occupied space over agiven period of time, counting space that is occupied but notspace that is vacated by tenants. Gross absorption differs fromleasing Activity, which is the sum of all space leased over a certainperiod of time. Unless otherwise noted Gross Absorption includesdirect and sublease space.

Growth in Inventory: The change in size of the existing squarefootage in a given area over a given period of time, generally dueto the construction of new buildings.

Industrial Building: A type of building adapted for such uses asthe assemblage, processing, and/or manufacturing of productsfrom raw materials or fabricated parts. Additional uses includewarehousing, distribution, and maintenance facilities. The pri-mary purpose of the space is for storing, producing, assembling,or distributing product.

Landlord Rep: (Landlord Representative) In a typical lease trans-action between an owner/landlord and tenant, the broker thatrepresents the interests of the owner/landlord is referred to as theLandlord Rep.

Leased Space: All the space that has a financial lease obligation.It includes all leased space, regardless of whether the space is

currently occupied by a tenant. Leased space also includes spacebeing offered for sublease.

Leasing Activity: The volume of square footage that is commit-ted to and signed under a lease obligation for a specific buildingor market in a given period of time. It includes direct leases,subleases and renewals of existing leases. It also includes anypre-leasing activity in planned, under construction, or underrenovation buildings.

Market: Geographic boundaries that serve to delineate core areasthat are competitive with each other and constitute a generallyaccepted primary competitive set of areas. Markets are building-type specific, and are non-overlapping contiguous geographicdesignations having a cumulative sum that matches the boundar-ies of the entire Region (See also: Region). Markets can be furthersubdivided into Submarkets. (See also: Submarkets)


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D THE COSTAR INDUSTRIAL REPORT 2010 COSTAR GROUP, INC.


Multi-Tenant: Buildings that house more than one tenant at agiven time. Usually, multi-tenant buildings were designed andbuilt to accommodate many different floor plans and designs fordifferent tenant needs. (See also: Tenancy).

Net Absorption: The net change in occupied space over a givenperiod of time. Unless otherwise noted Net Absorption includes

direct and sublease space.Net Rental Rate: A rental rate that excludes certain expenses thata tenant could incur in occupying office space. Such expensesare expected to be paid directly by the tenant and may includejanitorial costs, electricity, utilities, taxes, insurance and otherrelated costs.

New Space: Sometimes called first generation space, refers tospace that has never been occupied and/or leased by a tenant.

Occupied Space: Space that is physically occupied by a tenant.It does not include leased space that is not currently occupiedby a tenant.

Office Building: A type of commercial building used exclusivelyor primarily for office use (business), as opposed to manufactur-ing, warehousing, or other uses. Office buildings may sometimeshave other associated uses within part of the building, i.e., retail

sales, financial, or restaurant, usually on the ground floor.Owner: The company, entity, or individual that holds title on agiven building or property.

Planned/Proposed: The status of a building that has beenannounced for future development but not yet startedconstruction.

Preleased Space: The amount of space in a building that has beenleased prior to its construction completion date, or certificate ofoccupancy date.

Price/SF: Calculated by dividing the price of a building (eithersales price or asking sales price) by the Rentable Building Area(RBA).

Property Manager: The company and/or person responsible forthe day-to-day operations of a building, such as cleaning, trashremoval, etc. The property manager also makes sure that the vari-ous systems within the building, such as the elevators, HVAC, andelectrical systems, are functioning properly.

Quoted Rental Rate: The asking rate per square foot for a par-ticular building or unit of space by a broker or property owner.Quoted rental rates may differ from the actual rates paid bytenants following the negotiation of all terms and conditions ina specific lease.

RBA: Abbreviation for Rentable Building Area. (See also:Rentable Building Area)

Region: Core areas containing a large population nucleus, thattogether with adjacent communities have a high degree of eco-nomic and social integration. Regions are further divided intomarket areas, called Markets. (See also: Markets)

Relet Space: Sometimes called second generation or direct space,

refers to existing space that has previously been occupied byanother tenant.

Rentable Building Area: (RBA) The total square footage of abuilding that can be occupied by, or assigned to a tenant for thepurpose of determining a tenants rental obligation. GenerallyRBA includes a percentage of common areas including all hall-ways, main lobbies, bathrooms, and telephone closets.

Rental Rates: The annual costs of occupancy for a particularspace quoted on a per square foot basis.

Sales Price: The total dollar amount paid for a particular propertyat a particular point in time.

Sales Volume: The sum of sales prices for a given group of build-ings in a given time period.

Seller: The individual, group, company, or entity that sells a par-ticular commercial real estate asset.

SF: Abbreviation for Square Feet.

Single-Tenant: Buildings that are occupied, or intended to beoccupied by a single tenant. (See also: Build-to-suit and Tenancy)

Sublease Space: Space that has been leased by a tenant and isbeing offered for lease back to the market by the tenant withthe lease obligation. Sublease space is sometimes referred to assublet space.

Submarkets: Specific geographic boundaries that serve to delin-eate a core group of buildings that are competitive with eachother and constitute a generally accepted primary competitiveset, or peer group. Submarkets are building type specific (office,industrial, retail, etc.), with distinct boundaries dependent ondifferent factors relevant to each building type. Submarkets arenon-overlapping, contiguous geographic designations having acumulative sum that matches the boundaries of the Market theyare located within (See also: Market).

Suburban: The Suburban and Central Business District (CBD)designations refer to a particular geographic area within a metro-politan statistical area (MSA). Suburban is defined as including all

office inventory not located in the CBD. (See also: CBD)Tenancy: A term used to indicate whether or not a building isoccupied by multiple tenants (See also: Multi-tenant) or a singletenant. (See also: Single-tenant)

Tenant Rep: Tenant Rep stands for Tenant Representative. In atypical lease transaction between an owner/landlord and tenant,the broker that represents the interests of the tenant is referred toas a Tenant Rep.

Time On Market: A measure of how long a currently availablespace has been marketed for lease, regardless of whether it isvacant or occupied.

Under Construction: The status of a building that is in the processof being developed, assembled, built or constructed. A building isconsidered to be under construction after it has begun construc-tion and until it receives a certificate of occupancy.

Vacancy Rate: A measurement expressed as a percentage of thetotal amount of physically vacant space divided by the totalamount of existing inventory. Under construction space generallyis not included in vacancy calculations.

Vacant Space: Space that is not currently occupied by a tenant,regardless of any lease obligation that may be on the space.Vacant space could be space that is either available or not avail-able. For example, sublease space that is currently being paid forby a tenant but not occupied by that tenant, would be consideredvacant space. Likewise, space that has been leased but not yetoccupied because of finish work being done, would also be con-sidered vacant space.

Weighted Average Rental Rate: Rental rates that are calculated byfactoring in, or weighting, the square footage associated with eachparticular rental rate. This has the effect of causing rental rates

on larger spaces to affect the average more than that of smallerspaces. The weighted average rental rate is calculated by takingthe ratio of the square footage associated with the rental rate oneach individual available space to the square footage associatedwith rental rates on all available spaces, multiplying the rental rateby that ratio, and then adding together all the resulting numbers.Unless specifically specified otherwise, rental rate averages includeboth Direct and Sublet available spaces.

Year Built: The year in which a building completed constructionand was issued a certificate of occupancy.

YTD: Abbreviation for Year-to-Date. Describes statistics that arecumulative from the beginning of a calendar year through what-ever time period is being studied.


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2 THE COSTAR INDUSTRIAL REPORT 2010 COSTAR GROUP, INC.


Minneapolis Industrial MarketOVERVIEW

market decreased to 599,105 square feet by the end of the fourthquarter 2009, from 701,160 square feet at the end of the thirdquarter 2009. There was 634,476 square feet vacant at the endof the second quarter 2009 and 659,235 square feet at the end ofthe first quarter 2009.

Minneapoliss Flex projects reported vacant sublease spaceof 132,050 square feet at the end of fourth quarter 2009, downfrom the 262,973 square feet reported at the end of the thirdquarter 2009. There were 346,165 square feet of sublease spacevacant at the end of the second quarter 2009, and 352,329 squarefeet at the end of the first quarter 2009.

Warehouse projects reported increased vacant sublease spacefrom the third quarter 2009 to the fourth quarter 2009. Subleasevacancy went from 438,187 square feet to 467,055 square feetduring that time. There was 288,311 square feet at the end of thesecond quarter 2009, and 306,906 square feet at the end of thefirst quarter 2009.

Rental RatesThe average quoted asking rental rate for available Industrial

space was $6.09 per square foot per year at the end of the fourthquarter 2009 in the Minneapolis market area. This representeda 2.2% decrease in quoted rental rates from the end of the thirdquarter 2009, when rents were reported at $6.23 per squarefoot.

The average quoted rate within the Flex sector was $8.02per square foot at the end of the fourth quarter 2009, whileWarehouse rates stood at $5.66. At the end of the third quarter2009, Flex rates were $8.20 per square foot, and Warehouse rateswere $5.75.

Deliveries and ConstructionDuring the fourth quarter 2009, three buildings totaling

176,739 square feet were completed in the Minneapolis marketarea. This compares to two buildings totaling 38,531 squarefeet completed in the third quarter 2009, four buildings total-

ing 160,038 square feet completed in the second quarter 2009and 381,773 square feet in four buildings completed in the firsquarter 2009.

There was 28,042 square feet of Industrial space under construction at the end of the fourth quarter 2009.

Some of the notable 2009 deliveries include: 9150 217th StW, a 282,100-square-foot facility that delivered in first quarter2009 and is now 0% occupied, and AMB Rogers DistributionCenter, a 147,160-square-foot building that delivered in secondquarter 2009 and is now 42% occupied.

The largest projects underway at the end of fourth quarter2009 were 4001 Valley Industrial Blvd S, a 19,800-square-footbuilding with 0% of its space pre-leased, and 576 Front Ave, an8,242-square-foot facility that is 100% pre-leased.

InventoryTotal Industrial inventory in the Minneapolis market area

amounted to 341,649,959 square feet in 8,413 buildings as ofthe end of the fourth quarter 2009. The Flex sector consisted of74,906,692 square feet in 1,995 projects. The Warehouse sectorconsisted of 266,743,267 square feet in 6,418 buildings. Withinthe Industrial market there were 427 owner-occupied buildingsaccounting for 37,681,952 square feet of Industrial space.

Sales ActivityTallying industrial building sales of 15,000 square feet or

larger, Minneapolis industrial sales figures fell during the thirdquarter 2009 in terms of dollar volume compared to the secondquarter of 2009.

In the third quarter, 15 industrial transactions closed with a

total volume of $38,104,310. The 15 buildings totaled 745,677square feet and the average price per square foot equated to$51.10 per square foot. That compares to 21 transactions totaling$67,626,500 in the second quarter. The total square footage was1,480,639 for an average price per square foot of $45.67.

Total year-to-date industrial building sales activity in 2009 isdown compared to the previous year. In the first nine months o2009, the market saw 48 industrial sales transactions with a totavolume of $139,709,778. The price per square foot has averaged$47.81 this year. In the first nine months of 2008, the marketposted 107 transactions with a total volume of $632,245,878The price per square foot averaged $80.66.

Cap rates have been higher in 2009, averaging 9.28%, compared to the first nine months of last year when they averaged8.31%.

One of the largest transactions that has occurred within thelast four quarters in the Minneapolis market is the sale of 6200Glenn Carlson Dr in Saint Cloud. This 338,000-square-fooindustrial building sold for $17,100,000, or $50.59 per squarefoot. The property sold on 10/15/2009.

Reports compiled by: Jennifer Quast CoStar Research Manager.

U.S. Vacancy ComparisonPast 10 Quarters

Source: CoStar Property

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2007

3q

2007

4q

2008

1q

2008

2q

2008

3q

2008

4q

2009

1q

2009

2q

2009

3q

2009

4q

VacancyRate

Minneapolis United States


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YEAR-END 2009 MINNEAPOLI


2010 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 3

CoStar Markets

In analyzing metropolitan areas in the U.S., CoStar has developed geographic designations to help group properties together, calledRegions, Markets and Submarkets. Regions are the equivalent of metropolitan areas, or areas containing a large population nucleus,that together with adjacent communities have a high degree of economic and social integration. Regions are then divided intoMarkets, which are core areas within a metropolitan area that are known to be competitive with each other in terms of attractingand keeping tenants. Markets are then further subdivided into smaller units called Submarkets, which serve to delineate a core groupof buildings that are competitive with each other and constitute a generally accepted competitive set, or peer group.

MARKETS

Markets

Chisago County Ind

East Ind

Isanti County Ind

Midway Ind

Minneapolis Ind

North Central Ind

Northwest IndPierce County Ind

Sherburne County Ind

South Central Ind

Southwest Ind

St Croix County Ind

St Paul Ind

Stearns County Ind

Wright County Ind


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Total Employment by Industry Total Employment GrowthPercent of Total Employment by Industry Total Number of Jobs Added Per Year

Source: Department of Labor, Bureau of Labor Statistics Source: Department of Labor, Bureau of Labor Statistics

Total Employment Growth Industrial* Employment Growth

Cumulative Growth in Jobs Over the Past 5 Years Number of Industrial* Jobs Added Per Year

Market

Employment

Growth

Inventory

Growth Difference

Atlanta -200.00% 13.80% -213.80%

Chicago -105.80% 9.60% -115.40%

Dallas/Ft Worth -95.80% 14.00% -109.80%

Denver -100.70% 9.60% -110.30%

Detroit -121.60% 5.40% -127.00%

Houston -95.00% 16.80% -111.80%

Inland Empire (Californ ia) -107.10% 48.20% -155.30%

Los Angeles -106.20% 2.60% -108.80%

Northern New Jersey -99.80% 4.40% -104.20%

Pittsburgh -98.60% 5.80% -104.40%

Minneapolis -104.40% 12.00% -116.40%

Source: Department of Labor, Bureau of Labor Statistics

Historical Unemployment Rates

Source: Department of Labor, Bureau of Labor Statistics

Source: Department of Labor, Bureau of Labor Statistics. * Industrial employment is defined as jobs in the

Manufacturing, and Trade, Transportation & Utilities industries

-5.0%

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

PercentGrowth

Minneapolis U.S. Average

16%

10%

5%

14%

0%

15%

11%

19%

2%

8%

0%

Natural Resources &

MiningConstruction

Manufacturing

Trade, Transportation &

UtilitiesInformation

Financial Activities

Professional & Business

ServicesEducation & Health

ServicesLeisure & Hospitality

Other Services

Government

-8.0%

-7.0%

-6.0%

-5.0%

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

PercentGrowth


0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

1999

1q

1999

3q

2000

1q

2000

3q

2001

1q

2001

3q

2002

1q

2002

3q

2003

1q

2003

3q

2004

1q

2004

3q

2005

1q

2005

3q

2006

1q

2006

3q

2007

1q

2007

3q

2008

1q

2008

3q

2009

1q

2009

3q

PercentUnemplo

yment


EMPLOYMENT AND TENANT


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Historical Deliveries 1982 - 2009

Source: CoStar Property * Future deliveries based on current under construction buildings.

Construction Activity Markets Ranked by Under Construction RBA

# Bldgs Preleased SF Preleased % All Existing U/C

Southwest Ind 1 0 0.0% 48,678 19,800

St Paul Ind 1 8,242 100.0% 33,208 8,242

St Croix County Ind 0 0 0.0% 32,302 0

Chisago County Ind 0 0 0.0% 19,395 0

South Central Ind 0 0 0.0% 43,940 0

Midway Ind 0 0 0.0% 53,762 0

Minneapolis Ind 0 0 0.0% 34,832 0

Northwest Ind 0 0 0.0% 51,002 0

Isanti County Ind 0 0 0.0% 19,710 0East Ind 0 0 0.0% 36,789 0

All Other 0 0 0.0% 33,542 0

Totals 2 8,242 29.4% 40,610 14,021


Recent Deliveries Future DeliveriesLeased & Un-Leased SF in Deliveries Since 2005 Preleased & Un-Leased SF in Properties Scheduled to Deliver

Source: CoStar Property Source: CoStar Property

0

00

Market

Under Construction Inventory Average Bldg Size

Total RBA

0

19,800

28,042

8,242

0

0

0

0

0

4.4

3.0

5.7

6.8

5.9 5.95.5

6.0

3.6

1.8 1.7

2.7

4.1

6.2

8.2 8.2

6.8

8.9

5.7 5.9

1.6

2.72.2

1.82.0 2.1 2.0

0.8

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

MillionsofSF

Deliveries Average Delivered SF

0.0

0.5

1.0

1.5

2.0

2.5

2005 2006 2007 2008 2009

MillionsofSF

Leased Un-Leased

0

5

10

15

20

25

2010 1q 2010 2q

ThousandsofSF

Preleased Un-Leased

INVENTORY & DEVELOPMENT


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Historical Construction Starts & DeliveriesSquare Footage Per Quarter Starting and Completing Construction


Recent Deliveries by Project Size Breakdown of Year-to-Date Development Based on RBA of Project

Building Size # Bldgs RBA SF Leased % Leased Avg Rate Single-Tenant Multi-Tenant

< 50,000 SF 8 131,087 74,237 56.6% $0.00 20,131 110,956

50,000 SF - 99,999 SF 3 196,734 138,289 70.3% $8.37 0 196,734

100,000 SF - 249,999 SF 1 147,160 147,160 100.0% $7.25 0 147,160

250,000 SF - 499,999 SF 1 282,100 0 0.0% $4.90 0 282,100

>= 500,000 SF 0 0 0 0.0% $0.00 0 0


Recent Development by Tenancy Existing Inventory ComparisonBased on RBA Developed for Single & Multi-Tenant Use Based on Total RBA

2009 Deliveries


Currently Under Construction By Building Type By Tenancy Type

0.0

0.6

0.50.5

0.6

0.8

0.4

0.5

0.1

0.2

0.1

0.5

0.10.1

0.0 0.0

1.1

0.3 0.2

0.3

0.8

0.3

0.50.5

0.8

0.7

0.20.3

0.4

0.2

0.0

0.2

0.0

0.2

0.4

0.6

0.8

1.0

1.2

2006 1q 2006 2q 2006 3q 2006 4q 2007 1q 2007 2q 2007 3q 2007 4q 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

MillionsofSF

Construction Starts Deliveries

100%

0%

Multi Single

3%

97%

Multi Single

22%

78%

Flex Warehouse

33%

67%

Multi Single



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Minneapolis Industrial MarketINVENTORY & DEVELOPMENT


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Flex Market Statistics Year-End 2009YTD Net YTD Under Quoted

Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

Chisago County Ind 4 62,648 8,640 8,640 13.8% 0 0 0 $9.00

East Ind 241 7,381,745 597,437 597,437 8.1% (57,291) 0 0 $8.98

Isanti County Ind 6 151,465 20,181 20,181 13.3% 2,676 0 0 $5.37Midway Ind 162 6,293,274 733,061 733,061 11.6% (210,393) 0 0 $6.94

Minneapolis Ind 49 1,559,454 199,692 209,692 13.4% 42,415 0 0 $7.86

North Central Ind 298 10,905,484 1,090,150 1,145,390 10.5% (115,512) 92,689 0 $7.94

Northwest Ind 192 9,902,069 1,101,665 1,140,663 11.5% 1 9,932 38,450 0 $8.51

Pierce County Ind 0 0 0 0 0.0% 0 0 0 $0.00

Sherburne County Ind 16 347,848 44,797 44,797 12.9% (1,297) 0 0 $5.83

South Central Ind 376 13,104,264 1,221,077 1,224,377 9.3% (56,346) 0 0 $8.22

Southwest Ind 418 19,609,046 2,228,843 2,253,355 11.5% 207,882 0 0 $7.72

St Croix County Ind 28 632,514 106,945 106,945 16.9% 17,000 0 0 $10.37

St Paul Ind 170 4,222,636 284,212 284,212 6.7% 43,384 0 8,242 $7.99

Stearns County Ind 13 264,076 37,786 37,786 14.3% 3,640 0 0 $7.58

Wright County Ind 22 470,169 47,137 47,137 10.0% 6,610 0 0 $8.18

Totals 1,995 74,906,692 7,721,623 7,853,673 10.5% (97,300) 131,139 8,242 $8.02


Warehouse Market Statistics Year-End 2009YTD Net YTD Under Quoted


Chisago County Ind 159 3,098,811 128,328 128,328 4.1% (56,536) 0 0 $4.24

East Ind 237 10,203,553 510,098 510,098 5.0% (81,713) 0 0 $5.93

Isanti County Ind 97 1,878,659 47,081 47,081 2.5% 8,192 0 0 $5.53

Midway Ind 293 18,168,301 1,994,336 2,177,566 12.0% (251,825) 0 0 $5.37

Minneapol is Ind 662 23,206,339 1,567,499 1,645,499 7.1% 4,229 20,131 0 $5.22

North Central Ind 1,264 48,284,483 2,200,924 2,299,442 4.8% (46,465) 30,464 0 $5.71

Northwest Ind 979 49,820,994 2,772,809 2,797,094 5.6% (344,767) 227,727 0 $6.51

Pierce County Ind 12 132,264 18,820 18,820 14.2% (3,240) 0 0 $3.35

Sherburne County Ind 288 6,768,582 322,128 322,128 4.8% (90,870) 0 0 $5.76

South Central Ind 672 32,944,408 3,184,638 3,242,156 9.8% (284,477) 282,100 0 $5.54

Southwest Ind 940 46,495,139 2,564,993 2,572,278 5.5% 261,812 65,520 19,800 $5.51

St Croix County Ind 163 5,537,130 143,738 143,738 2.6% 25,384 0 0 $4.25St Paul Ind 241 9,425,878 475,631 493,850 5.2% (34,432) 0 0 $4.57

Stearns County Ind 145 4,992,145 323,562 323,562 6.5% 5,811 0 0 $4.72

Wright County Ind 266 5,786,581 373,579 373,579 6 .5% (16,456) 0 0 $6.08

Totals 6,418 266,743,267 16,628,164 17,095,219 6.4% (905,353) 625,942 19,800 $5.66


Total Industrial Market Statistics Year-End 2009YTD Net YTD Under Quoted


Chisago County Ind 163 3,161,459 136,968 136,968 4.3% (56,536) 0 0 $4.53

East Ind 478 17,585,298 1,107,535 1,107,535 6.3% (139,004) 0 0 $7.14

Isanti County Ind 103 2 ,030,124 67,262 67,262 3.3% 10,868 0 0 $5.50

Midway Ind 455 24,461,575 2,727,397 2,910,627 11.9% (462,218) 0 0 $5.54

Minneapol is Ind 711 24,765,793 1,767,191 1,855,191 7 .5% 46,644 20,131 0 $5.35North Central Ind 1,562 59,189,967 3,291,074 3,444,832 5.8% (161,977) 123,153 0 $6.14

Northwest Ind 1,171 59,723,063 3,874,474 3,937,757 6.6% (324,835) 266,177 0 $6.78

Pierce County Ind 12 132,264 18,820 18,820 14.2% (3,240) 0 0 $3.35

Sherburne County Ind 304 7,116,430 366,925 366,925 5.2% (92,167) 0 0 $5.77

South Central Ind 1,048 46,048,672 4,405,715 4,466,533 9.7% (340,823) 282,100 0 $6.02

Southwest Ind 1,358 66,104,185 4,793,836 4,825,633 7.3% 469,694 65,520 19,800 $6.10

St Croix County Ind 191 6,169,644 250,683 250,683 4.1% 42,384 0 0 $4.57

St Paul Ind 411 13,648,514 759,843 778,062 5.7% 8,952 0 8,242 $5.21

Stearns County Ind 158 5,256,221 361,348 361,348 6.9% 9,451 0 0 $4.88

Wright County Ind 288 6,256,750 420,716 420,716 6.7% (9,846) 0 0 $6.36

Totals 8,413 341,649,959 24,349,787 24,948,892 7.3% (1,002,653) 757,081 28,042 $6.09


Existing Inventory Vacancy



FIGURES AT A GLANCE


15/35



Minneapolis Industrial MarketFIGURES AT A GLANCE

Flex Market Statistics Year-End 2009Net Quoted

Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates

2009 4q 1,995 74,906,692 7,721,623 7,853,673 10.5% 113,445 2 112,739 1 8,242 $8.02

2009 3q 1,993 74,793,953 7,591,406 7,854,379 10.5% (22,090) 1 18,400 3 120,981 $8.20

2009 2q 1,992 74,775,553 7,467,724 7,813,889 10.4% (112,803) 0 0 4 139,381 $8.242009 1q 1,992 74,775,553 7,348,757 7,701,086 10.3% (75,852) 0 0 3 120,981 $8.35

2008 4q 1,992 74,775,553 7,298,509 7,625,234 10.2% 390,491 2 83,135 0 0 $8.35

2008 3q 1,990 74,692,418 7,782,674 7,932,590 10.6% 70,122 2 50,550 2 83,135 $8.11

2008 2q 1,988 74,641,868 7,753,173 7,952,162 10.7% 263,262 1 116,000 3 116,182 $7.99

2008 1q 1,987 74,525,868 7,906,364 8,099,424 10.9% 213,861 8 403,762 3 166,550 $7.94

2007 4q 1,979 74,122,106 7,711,753 7,909,523 10.7% 58,906 1 50,000 9 519,762 $7.64

2007 3q 1,978 74,072,106 7,723,466 7,918,429 10.7% 108,455 3 127,900 9 453,762 $7.79

2007 2q 1,975 73,944,206 7,677,050 7,898,984 10.7% 1,075,830 2 100,848 8 399,900 $7.75

2007 1q 1,973 73,843,358 8,593,043 8,873,966 12.0% (400) 10 335,082 8 313,748 $7.67

2006 4q 1,963 73,508,276 8,208,107 8,538,484 11.6% 34,643 2 44,000 14 561,559 $7.69

2006 3q 1,961 73,464,276 8,217,584 8,529,127 11.6% (117,669) 3 100,473 12 396,175 $7.65

2006 2q 1,958 73,363,803 8,052,067 8,310,985 11.3% 277,258 1 194,500 8 296,915 $7.42

2006 1q 1,957 73,169,303 8,075,613 8,393,743 11.5% 0 12 376,518 5 339,973 $7.15


Warehouse Market Statistics Year-End 2009Net Quoted


2009 4q 6,418 266,743,267 16,628,164 17,095,219 6.4% (405,877) 1 64,000 1 19,800 $5.66

2009 3q 6,417 266,679,267 16,187,155 16,625,342 6.2% (1,317) 1 20,131 2 83,800 $5.75

2009 2q 6,416 266,659,136 16,315,583 16,603,894 6.2% (322,510) 4 160,038 3 103,931 $5.75

2009 1q 6,413 266,504,191 15,819,533 16,126,439 6.1% (175,649) 4 381,773 6 199,969 $5.81

2008 4q 6,410 266,301,464 15,423,107 15,748,063 5.9% (383,720) 4 188,313 9 561,942 $5.82

2008 3q 6,407 266,141,704 14,888,349 15,204,583 5.7% 9,079 4 193,820 7 287,986 $5.76

2008 2q 6,404 265,952,808 14,832,292 15,024,766 5.6% 477,682 8 551,540 9 440,578 $5.68

2008 1q 6,397 265,441,855 14,740,653 14,991,495 5.6% 1,589,093 3 373,704 13 843,693 $5.66

2007 4q 6,394 265,068,151 15,917,276 16,206,884 6.1% 356,635 6 416,250 14 1,119,540 $5.57

2007 3q 6,388 264,651,901 15,926,232 16,147,269 6.1% 592,971 6 368,720 13 1,152,611 $5.50

2007 2q 6,382 264,283,181 16,030,447 16,371,520 6.2% 168,399 6 212,971 17 1,308,067 $5.49

2007 1q 6,376 264,070,210 15,856,666 16,326,948 6.2% 1,466,726 11 452,388 16 860,975 $5.47

2006 4q 6,365 263,617,822 16,983,755 17,341,286 6.6% 281,596 7 268,893 19 833,759 $5.28

2006 3q 6,358 263,348,929 17,042,790 17,353,989 6.6% 1,386,611 9 148,608 20 851,518 $5.18

2006 2q 6,349 263,200,321 17,955,284 18,591,992 7.1% 1,910,085 5 69,827 21 700,144 $5.18

2006 1q 6,345 263,404,287 19,530,088 20,706,043 7.9% 0 24 743,910 17 334,435 $5.07


Total Industrial Market Statistics Year-End 2009Net Quoted


2009 4q 8,413 341,649,959 24,349,787 24,948,892 7.3% (292,432) 3 176,739 2 28,042 $6.09

2009 3q 8,410 341,473,220 23,778,561 24,479,721 7.2% (23,407) 2 38,531 5 204,781 $6.23

2009 2q 8,408 341,434,689 23,783,307 24,417,783 7.2% (435,313) 4 160,038 7 243,312 $6.27

2009 1q 8,405 341,279,744 23,168,290 23,827,525 7.0% (251,501) 4 381,773 9 320,950 $6.34

2008 4q 8,402 341,077,017 22,721,616 23,373,297 6.9% 6,771 6 271,448 9 561,942 $6.37

2008 3q 8,397 340,834,122 22,671,023 23,137,173 6.8% 79,201 6 244,370 9 371,121 $6.28

2008 2q 8,392 340,594,676 22,585,465 22,976,928 6.7% 740,944 9 667,540 12 556,760 $6.18

2008 1q 8,384 339,967,723 22,647,017 23,090,919 6.8% 1,802,954 11 777,466 16 1,010,243 $6.15

2007 4q 8,373 339,190,257 23,629,029 24,116,407 7.1% 415,541 7 466,250 23 1,639,302 $6.06

2007 3q 8,366 338,724,007 23,649,698 24,065,698 7.1% 701,426 9 496,620 22 1,606,373 $6.08

2007 2q 8,357 338,227,387 23,707,497 24,270,504 7.2% 1,244,229 8 313,819 25 1,707,967 $6.11

2007 1q 8,349 337,913,568 24,449,709 25,200,914 7.5% 1,466,326 21 787,470 24 1,174,723 $6.05

2006 4q 8,328 337,126,098 25,191,862 25,879,770 7.7% 316,239 9 312,893 33 1,395,318 $5.88

2006 3q 8,319 336,813,205 25,260,374 25,883,116 7.7% 1,268,942 12 249,081 32 1,247,693 $5.77

2006 2q 8,307 336,564,124 26,007,351 26,902,977 8.0% 2,187,343 6 264,327 29 997,059 $5.74

2006 1q 8,302 336,573,590 27,605,701 29,099,786 8.6% 0 36 1,120,428 22 674,408 $5.60


Existing Inventory Vacancy Deliveries UC Inventory




16/35


17/35



Minneapolis Industrial MarketLEASING ACTIVITY


* Renewal

Building Submarket SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company

1 Continental Decatur Southwest Ind 330,000 1st Jacobs Trading Company Continental Property Group, Inc. Continental Property Group, Inc.

2 1080 Park Pl* Southwest Ind 300,000 2nd Silgan Containers Direct Deal NorthMarq

3 River Road Industrial Center North Central Ind 244,666 3rd BP Wind Energy North America Direct Deal Colliers Turley Martin Tucker

4 3880 4th Ave E Southwest Ind 157,000 2nd Cokem International, Ltd. NAI Welsh NAI Welsh

5 7401 N Boone Ave Northwest Ind 155,026 2nd AM Retail Group, Inc Direct Deal Direct Deal

6 2300 Pilot Knob Rd South Central Ind 124,783 4th MPC N/A NAI Welsh

7 MSP Midway Industrial Park #9* Midway Ind 123,464 2nd Northpoint Capital Partners, LLC Direct Deal NAI Welsh

8 Crosstown North Business Center - Bldg XII Northwest Ind 120,048 2nd Graybar Electric Co. CB Richard Ellis Colliers Turley Martin Tucker

9 Continental Distribution Center Southwest Ind 106,371 4th National Distribution Center N/A NAI Welsh

10 9210 Wyoming Ave N Northwest Ind 86,941 2nd Target Keewaydin Real Estate Advisors Duke Realty Corporation

11 IGH Dist Center South Central Ind 74,086 4th Land OLakes N/A NorthMarq

12 Plymouth Corporate Center Northwest Ind 65,000 3rd Comm-Works AREA CB Richard Ellis

13 AMB Rogers Distribution Center Northwest Ind 61,100 2nd Blu Dot NAI Welsh Colliers Turley Martin Tucker

14 5130 Industrial St Southwest Ind 56,620 2nd N/A N/A Wayzata Properties

15 4658 Heatherwood Rd Stearns County Ind 54,000 4th Quest Telecommunications N/A RQ Investments

16 8299 NE Central Ave* North Central Ind 53,000 3rd Medtronic, Inc. N/A N/A

17 12755 Highway 55 Northwest Ind 48,700 4th IQor, Inc CB Richard Ellis Walsh Partners, Inc.

18 AMB Aurora Industrial Warehouse North Central Ind 47,715 1st N/A N/A CB Richard Ellis

19 9449 Science Center Dr* Northwest Ind 46,726 3rd Multiband Corporation N/A N/A

20 1809 E Hennepin Ave Midway Ind 45,650 4th N/A N/A Paramount Real Estate Corporation

21 Eagandale Crossing South Central Ind 42,303 2nd Buffets, Inc. CB Richard Ellis Paramount Real Estate Corporation

22 940 E Hennepin Ave Midway Ind 41,000 2nd Arrowhead Contracting CB Richard Ellis Hillcrest Development LLLP

23 Boulder Lakes Ofce III South Central Ind 37,000 3rd AllianceOne, Inc. NorthMarq Transwestern

24 Rice Creek Business Center I North Central Ind 34,461 3rd N/A N/A Interstate Partners

25 Parkers Lake Pointe East Northwest Ind 32,760 3rd N/A N/A N/A

26 MSP Midway Industrial Park #8 Midway Ind 32,000 2nd Ryder Logistics N/A NAI Welsh

27 6533 Flying Cloud Dr* Southwest Ind 31,940 2nd Alternative Business Furniture, Inc. N/A NAI Welsh

28 Penn Avenue Business Center Southwest Ind 29,774 4th N/A N/A Standard Holdings

29 11300 K-Tel Dr Southwest Ind 29,540 2nd N/A N/A The C. Chase Company

30 Silver Bell Commons* South Central Ind 28,055 2nd Gleasons Gymnastic School Direct Deal Direct Deal

31 Sun Lite III Northwest Ind 28,000 1st Roberts Hamilton Co. N/A NAI Welsh

32 5350 Highway 61 East Ind 28,000 2nd N/A Steve Harrington Steve Harrington

33 654 Industrial Blvd Southwest Ind 27,564 2nd Premier Gymnastics N/A Copperwood Investments LLC

34 New Brighton Commerce Center North Central Ind 26,763 3rd Comtrol UGL Equis Transwestern

35 Wedgwood Commerce Ctr 3 Northwest Ind 26,073 2nd Cartika Medical Inc NorthMarq Grubb & Ellis/Northco Real Estate S

36 Lexington Preserve Business Park - Phase II North Central Ind 24,537 2nd Karl Dungs N/A NAI Welsh

37 3750 N Annapolis Ln Northwest Ind 23,355 2nd Atritech Jones Lang LaSalle NorthMarq

38 CLT Floorcoverings Building South Central Ind 23,300 2nd N/A N/A Langer Real Estate Services

39 Diamond Lake Industrial Center I Northwest Ind 23,159 3rd Cabelas Marine Source N/A Colliers Turley Martin Tucker

40 Huntington Building Southwest Ind 22,000 3rd N/A N/A NAI Welsh

Select Top Industrial Leases Based on Leased Square Footage For Deals Signed in 2009


18/35




SALES ACTIVITY

The Optimist Sales Index Average of Two Highest Price/SF's and Two Lowest Cap Rates Per Quarter

Source: CoStar COMPS

Sales Volume & Price Sales Analysis by Building SizeBased on Industrial Building Sales of 15,000 SF and Larger Based on Industrial Bldg Sales From Oct. 2008 - Sept. 2009Bldg Size # RBA $ Volume Price/SF Cap Rate

< 25,000 SF 64 861,868 69,370,443$ 80.49$ 8.22%

25K-99K SF 40 1,895,677 91,623,462$ 48.33$ 8.13%

100K-249K SF 17 2,618,927 110,492,788$ 42.19$ 10.01%

>250K SF 2 648,200 24,940,000$ 38.48$ 8.70%

Source: CoStar COMPS Source: CoStar COMPS

U.S. Price/SF Comparison U.S. Cap Rate ComparisonBased on Industrial Building Sales of 15,000 SF and Larger Based on Industrial Building Sales of 15,000 SF and Larger

Source: CoStar COMPS Source: CoStar COMPS

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19/35



Minneapolis Industrial MarketSALES ACTIVITY


20/35




SALES ACTIVITY

Select Land Sales Based on Industrial Zoned Land Sales Occurring From Oct. 2008 - Dec. 2009

Rich Valley Blvd, Inver Grove Heights 9349 W Broadway Ave, Brooklyn Park 2101-2201 W 94th St, Bloomington

Sale Price: $3,345,093 Sale Price: $2,505,608 Sale Price: $1,830,250Acres: 29.18 Acres: 1.22 Acres: 4.96Price/SF: $2.63 Price/SF: $47.15 Price/SF: $8.47C osing Date: 12/18/2008 C osing Date: 12/30/2008 C osing Date: 01/15/2009Zoning: Commercial Zoning: Unknown Zoning: I-2Intended Use: Industrial Intended Use: Industrial Intended Use: IndustrialBuyer: Ric Va ey L c Buyer: Nort west EMC, Inc. Buyer: For i ts O Minnesota Inc

Seller: Pab Ents Of Minnesota Inc Seller: Ryan Companies US, Inc. Seller: 2145, LLP

2305 Kennedy St NE, Minneapolis 13940 Northdale Blvd, Rogers

Sale Price: $1,044,000 Sale Price: $525,000Acres: 1.19 Acres: 3.06Price/SF: 20.10 Price/SF: 3.94Closing Date: 05/11/2009 Closing Date: 08/24/2009Zoning: I-2 Zoning: C-2Intended Use: Parking Lot Intended Use: RetailBuyer: Techne Corp Buyer: Lidd Properties LlcSe er: Hi crest Deve opment LLLP Se er: SourceGroup LLC

Source: CoStar COMPS


21/35



Minneapolis Industrial MarketMARKET HIGHLIGHTS - FLEX & WAREHOUSE

C H I S A G O C O U N T Y M A R K E T

Deliveries, Absorption & Vacancy Historical Analysis, Flex and Warehouse


Vacant Space Quoted Rental RatesHistorical Analysis, Flex and Warehouse Historical Analysis, Flex and Warehouse


Net Quoted

Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates

2009 4q 163 3,161,459 136,968 4.3% (8,981) 0 0 0 0 $4.53

2009 3q 163 3,161,459 127,987 4.0% 47,920 0 0 0 0 $4.25

2009 2q 163 3,161,459 175,907 5.6% (95,475) 0 0 0 0 $4.18

2009 1q 163 3,161,459 80,432 2.5% 0 0 0 0 0 $4.55

2008 4q 163 3,161,459 80,432 2.5% 13,251 0 0 0 0 $4.28

2008 3q 163 3,161,459 93,683 3.0% (11,640) 0 0 0 0 $4.10

2008 2q 163 3,161,459 82,043 2.6% 4,840 0 0 0 0 $4.252008 1q 163 3,161,459 86,883 2.7% 15,822 0 0 0 0 $4.20

2007 4q 163 3,161,459 102,705 3.2% 205,187 0 0 0 0 $3.84

2007 3q 163 3,161,459 307,892 9.7% 11,248 0 0 0 0 $6.86

2007 2q 163 3,161,459 319,140 10.1% (12,348) 0 0 0 0 $6.86

2007 1q 163 3,161,459 306,792 9.7% (252,000) 1 14,800 0 0 $6.50

2006 4q 162 3,146,659 39,992 1.3% 0 0 0 1 14,800 $0.00

2006 3q 162 3,146,659 39,992 1.3% 0 0 0 1 14,800 $0.00

2006 2q 162 3,146,659 39,992 1.3% (39,992) 0 0 0 0 $0.00

2006 1q 162 3,146,659 0 0.0% 0 0 0 0 0 $0.00


UC InventoryDelivered InventoryExisting Inventory Vacancy

(0.300)

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MillionsSF

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22/35




E A S T M A R K E T





Net Quoted


2009 4q 478 17,585,298 1,107,535 6.3% (6,057) 0 0 0 0 $7.14

2009 3q 478 17,585,298 1,101,478 6.3% (60,109) 0 0 0 0 $7.19

2009 2q 478 17,585,298 1,041,369 5.9% (4,049) 0 0 0 0 $7.88

2009 1q 478 17,585,298 1,037,320 5.9% (68,789) 0 0 0 0 $7.79

2008 4q 478 17,585,298 968,531 5.5% 72,292 0 0 0 0 $8.14

2008 3q 478 17,585,298 1,040,823 5.9% 161,248 2 176,000 0 0 $8.10

2008 2q 476 17,409,298 1,026,071 5.9% (19,741) 1 14,800 2 176,000 $8.182008 1q 475 17,394,498 991,530 5.7% 42,244 1 43,396 3 190,800 $8.41

2007 4q 474 17,351,102 990,378 5.7% 83,192 0 0 4 234,196 $7.84

2007 3q 474 17,351,102 1,073,570 6.2% 112,714 1 50,120 2 58,196 $7.87

2007 2q 473 17,300,982 1,136,164 6.6% (1,437) 2 68,607 2 64,920 $7.41

2007 1q 471 17,232,375 1,066,120 6.2% 24,466 4 174,714 4 133,527 $7.27

2006 4q 467 17,057,661 915,872 5.4% 3,267 2 48,057 6 231,850 $6.66

2006 3q 465 17,009,604 871,082 5.1% (24,617) 2 21,673 7 237,571 $6.51

2006 2q 463 16,987,931 824,792 4.9% (9,587) 0 0 6 182,504 $6.49

2006 1q 463 16,987,931 815,205 4.8% 0 5 119,705 3 36,473 $5.87



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23/35




I S A N T I C O U N T Y M A R K E T





Net Quoted


2009 4q 103 2,030,124 67,262 3.3% 13,462 0 0 0 0 $5.50

2009 3q 103 2,030,124 80,724 4.0% (2,234) 0 0 0 0 $5.53

2009 2q 103 2,030,124 78,490 3.9% (1,400) 0 0 0 0 $5.51

2009 1q 103 2,030,124 77,090 3.8% 1,040 0 0 0 0 $5.50

2008 4q 103 2,030,124 78,130 3.8% 0 0 0 0 0 $5.46

2008 3q 103 2,030,124 78,130 3.8% (8,964) 0 0 0 0 $4.99

2008 2q 103 2,030,124 69,166 3.4% (582) 0 0 0 0 $4.962008 1q 103 2,030,124 68,584 3.4% 16,745 0 0 0 0 $4.96

2007 4q 103 2,030,124 85,329 4.2% (3,452) 0 0 0 0 $6.58

2007 3q 103 2,030,124 81,877 4.0% (27,264) 1 16,000 0 0 $6.86

2007 2q 102 2,014,124 38,613 1.9% 39,200 1 22,500 1 16,000 $7.19

2007 1q 101 1,991,624 55,313 2.8% (713) 0 0 2 38,500 $6.17

2006 4q 101 1,991,624 54,600 2.7% (39,100) 0 0 1 22,500 $3.91

2006 3q 101 1,991,624 15,500 0.8% 17,300 0 0 0 0 $3.91

2006 2q 101 1,991,624 32,800 1.6% 60,800 0 0 0 0 $4.20

2006 1q 101 1,991,624 93,600 4.7% 0 3 45,997 0 0 $4.08



(0.060)

(0.040)

(0.020)

0.000

0.020

0.040

0.060

0.080


MillionsSF

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

PercentVacant


$4.60

$4.70

$4.80

$4.90

$5.00

$5.10

$5.20

$5.30

$5.40

$5.50

$5.60

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Dollars/SF/Year

0.00

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

MillionsSF

Direct SF Sublet SF


24/35




M I D W A Y M A R K E TMARKET HIGHLIGHTS - FLEX & WAREHOUSE





Net Quoted


2009 4q 455 24,461,575 2,910,627 11.9% (103,028) 0 0 0 0 $5.54

2009 3q 455 24,461,575 2,807,599 11.5% (114,478) 0 0 0 0 $5.76

2009 2q 455 24,461,575 2,693,121 11.0% (118,972) 0 0 0 0 $5.83

2009 1q 455 24,461,575 2,574,149 10.5% (125,740) 0 0 0 0 $6.15

2008 4q 455 24,461,575 2,448,409 10.0% (446,031) 0 0 0 0 $6.19

2008 3q 455 24,461,575 2,002,378 8.2% (133,572) 0 0 0 0 $6.06

2008 2q 455 24,461,575 1,868,806 7.6% (160,988) 0 0 0 0 $6.052008 1q 455 24,461,575 1,707,818 7.0% 60,965 0 0 0 0 $6.03

2007 4q 455 24,461,575 1,768,783 7.2% (87,358) 0 0 0 0 $5.96

2007 3q 455 24,461,575 1,681,425 6.9% 138,950 0 0 0 0 $5.92

2007 2q 455 24,461,575 1,820,375 7.4% (289,363) 0 0 0 0 $6.06

2007 1q 455 24,461,575 1,531,012 6.3% 186,880 0 0 0 0 $5.85

2006 4q 455 24,461,575 1,717,892 7.0% (73,640) 0 0 0 0 $5.45

2006 3q 455 24,461,575 1,644,252 6.7% 250,868 0 0 0 0 $5.41

2006 2q 455 24,461,575 1,895,120 7.7% 228,902 0 0 0 0 $5.33

2006 1q 455 24,461,575 2,124,022 8.7% 0 1 142,998 0 0 $5.07



(0.500)

(0.400)

(0.300)

(0.200)

(0.100)

0.000

0.100

0.200

0.300


MillionsSF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

PercentVacant


$5.20

$5.40

$5.60

$5.80

$6.00

$6.20

$6.40

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Dollars/SF/Year

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

MillionsSF

Direct SF Sublet SF


25/35




M I N N E A P O L I S M A R K E TMARKET HIGHLIGHTS - FLEX & WAREHOUSE





Net Quoted


2009 4q 711 24,765,793 1,855,191 7.5% 8,460 0 0 0 0 $5.35

2009 3q 711 24,765,793 1,863,651 7.5% 43,022 1 20,131 0 0 $5.37

2009 2q 710 24,745,662 1,886,542 7.6% 50,497 0 0 1 20,131 $5.40

2009 1q 710 24,745,662 1,937,039 7.8% (55,335) 0 0 1 20,131 $5.50

2008 4q 710 24,745,662 1,881,704 7.6% (118,766) 0 0 1 20,131 $5.30

2008 3q 710 24,745,662 1,762,938 7.1% (56,710) 0 0 0 0 $5.12

2008 2q 710 24,745,662 1,706,228 6.9% (140,448) 1 44,857 0 0 $5.152008 1q 710 24,741,392 1,561,510 6.3% 63,954 0 0 1 44,857 $5.25

2007 4q 710 24,741,392 1,625,464 6.6% 146,449 0 0 1 44,857 $5.03

2007 3q 710 24,741,392 1,771,913 7.2% (118,147) 0 0 1 44,857 $4.84

2007 2q 710 24,741,392 1,653,766 6.7% 45,113 0 0 1 44,857 $5.11

2007 1q 710 24,741,392 1,698,879 6.9% 196,450 0 0 0 0 $5.24

2006 4q 710 24,741,392 1,895,329 7.7% 135,138 0 0 0 0 $5.50

2006 3q 710 24,741,392 2,030,467 8.2% (238,633) 0 0 0 0 $5.43

2006 2q 710 24,741,392 1,791,834 7.2% (128,855) 0 0 0 0 $5.55

2006 1q 710 24,741,392 1,662,979 6.7% 0 2 189,100 0 0 $5.17



(0.300)

(0.250)

(0.200)

(0.150)

(0.100)

(0.050)

0.000

0.050

0.100

0.150

0.200

0.250


MillionsSF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

PercentVacant


$4.90

$5.00

$5.10

$5.20

$5.30

$5.40

$5.50

$5.60

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Dollars/SF/Year

0.00

0.50

1.00

1.50

2.00

2.50

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

MillionsSF

Direct SF Sublet SF


26/35




N O R T H C E N T R A L M A R K E T





Net Quoted


2009 4q 1,562 59,189,967 3,444,832 5.8% (204,435) 1 74,289 0 0 $6.14

2009 3q 1,561 59,115,678 3,166,108 5.4% 262,854 1 18,400 1 74,289 $6.19

2009 2q 1,560 59,097,278 3,410,562 5.8% (278,222) 1 8,430 2 92,689 $6.30

2009 1q 1,559 59,088,848 3,123,910 5.3% 57,826 1 22,034 2 82,719 $6.44

2008 4q 1,558 59,066,814 3,159,702 5.3% 66,580 1 57,980 2 30,464 $6.50

2008 3q 1,557 59,008,834 3,168,302 5.4% (125,730) 2 23,550 2 80,014 $6.26

2008 2q 1,556 58,990,208 3,023,946 5.1% 205,965 0 0 3 81,530 $5.912008 1q 1,556 58,990,208 3,229,911 5.5% 1,012,185 4 330,880 2 23,550 $5.73

2007 4q 1,552 58,659,328 3,911,216 6.7% 200,166 0 0 4 330,880 $5.70

2007 3q 1,552 58,659,328 4,111,382 7.0% 264,276 2 110,000 4 330,880 $5.64

2007 2q 1,550 58,549,328 4,265,658 7.3% 71,084 0 0 6 440,880 $5.43

2007 1q 1,550 58,549,328 4,336,742 7.4% 195,973 3 61,028 2 58,000 $5.43

2006 4q 1,547 58,488,300 4,471,687 7.6% (98,013) 1 53,200 4 89,028 $5.48

2006 3q 1,546 58,435,100 4,320,474 7.4% (231,120) 3 54,767 3 86,321 $5.23

2006 2q 1,543 58,380,333 4,034,587 6.9% 448,177 2 26,000 4 107,967 $5.49

2006 1q 1,542 58,628,126 4,730,557 8.1% 0 9 220,386 6 133,967 $5.36



(0.400)

(0.200)

0.000

0.200

0.400

0.600

0.800

1.000

1.200


MillionsSF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

PercentVacant


$5.20

$5.40

$5.60

$5.80

$6.00

$6.20

$6.40

$6.60

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Dollars/SF/Year

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

MillionsSF

Direct SF Sublet SF


27/35




N O R T H W E S T M A R K E T





Net Quoted


2009 4q 1,171 59,723,063 3,937,757 6.6% (56,746) 1 38,450 0 0 $6.78

2009 3q 1,170 59,684,613 3,842,561 6.4% (96,533) 0 0 1 38,450 $7.07

2009 2q 1,170 59,684,613 3,746,028 6.3% (114,350) 2 150,088 1 38,450 $6.94

2009 1q 1,168 59,534,525 3,481,590 5.8% (57,206) 2 77,639 3 188,538 $7.09

2008 4q 1,166 59,456,886 3,346,745 5.6% (175,311) 0 0 4 227,727 $7.04

2008 3q 1,166 59,456,886 3,171,434 5.3% 266,985 0 0 2 77,639 $6.98

2008 2q 1,166 59,456,886 3,438,419 5.8% 110,542 2 163,857 1 58,445 $6.862008 1q 1,164 59,293,029 3,385,104 5.7% 102,197 1 170,824 2 163,857 $6.74

2007 4q 1,163 59,122,205 3,316,477 5.6% (18,653) 1 104,004 2 245,824 $6.52

2007 3q 1,162 59,018,201 3,193,820 5.4% 185,383 0 0 3 349,828 $6.73

2007 2q 1,162 59,018,201 3,379,203 5.7% 235,382 0 0 2 179,004 $6.86

2007 1q 1,162 59,018,201 3,614,585 6.1% 346,119 0 0 1 104,004 $6.50

2006 4q 1,162 59,018,201 3,960,704 6.7% 352,491 0 0 0 0 $6.12

2006 3q 1,162 59,018,201 4,313,195 7.3% 764,874 1 9,695 0 0 $6.17

2006 2q 1,161 59,008,506 5,068,374 8.6% 554,004 2 225,955 1 9,695 $5.82

2006 1q 1,159 58,782,551 5,396,423 9.2% 0 1 4,170 3 235,650 $5.51



(0.400)

(0.200)

0.000

0.200

0.400

0.600

0.800

1.000


MillionsSF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

PercentVacant


$6.50

$6.60

$6.70

$6.80

$6.90

$7.00

$7.10

$7.20

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Dollars/SF/Year

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

MillionsSF

Direct SF Sublet SF


28/35




P I E R C E C O U N T Y M A R K E T





Net Quoted


2009 4q 12 132,264 18,820 14.2% 9,000 0 0 0 0 $3.35

2009 3q 12 132,264 27,820 21.0% (12,240) 0 0 0 0 $3.07

2009 2q 12 132,264 15,580 11.8% 0 0 0 0 0 $0.00

2009 1q 12 132,264 15,580 11.8% 0 0 0 0 0 $0.00

2008 4q 12 132,264 15,580 11.8% 0 0 0 0 0 $0.00

2008 3q 12 132,264 15,580 11.8% (15,580) 0 0 0 0 $0.00

2008 2q 12 132,264 0 0.0% 0 0 0 0 0 $0.002008 1q 12 132,264 0 0.0% 0 0 0 0 0 $0.00

2007 4q 12 132,264 0 0.0% 0 0 0 0 0 $0.00

2007 3q 12 132,264 0 0.0% 0 0 0 0 0 $0.00

2007 2q 12 132,264 0 0.0% 0 0 0 0 0 $0.00

2007 1q 12 132,264 0 0.0% 0 0 0 0 0 $0.00

2006 4q 12 132,264 0 0.0% 0 0 0 0 0 $0.00

2006 3q 12 132,264 0 0.0% 0 0 0 0 0 $0.00

2006 2q 12 132,264 0 0.0% 0 0 0 0 0 $0.00

2006 1q 12 132,264 0 0.0% 0 0 0 0 0 $0.00



(0.020)

(0.015)

(0.010)

(0.005)

0.000

0.005

0.010

0.015


MillionsSF

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

PercentVacant


$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Dollars/SF/Year

0.00

0.01

0.01

0.02

0.02

0.03

0.03

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

MillionsSF

Direct SF Sublet SF


29/35




S H E R B U R N E C O U N T Y M A R K E T





Net Quoted


2009 4q 304 7,116,430 366,925 5.2% (74,988) 0 0 0 0 $5.77

2009 3q 304 7,116,430 291,937 4.1% (18,266) 0 0 0 0 $6.04

2009 2q 304 7,116,430 273,671 3.8% 3,057 0 0 0 0 $5.90

2009 1q 304 7,116,430 276,728 3.9% (1,970) 0 0 0 0 $6.13

2008 4q 304 7,116,430 274,758 3.9% (70,426) 1 20,000 0 0 $5.70

2008 3q 303 7,096,430 184,332 2.6% 22,345 1 8,820 1 20,000 $6.12

2008 2q 302 7,087,610 197,857 2.8% 15,840 2 86,300 2 28,820 $5.992008 1q 300 7,001,310 127,397 1.8% 44,272 0 0 3 95,120 $5.90

2007 4q 300 7,001,310 171,669 2.5% 74,915 1 60,000 3 95,120 $6.47

2007 3q 299 6,941,310 186,584 2.7% 41,840 0 0 1 60,000 $6.45

2007 2q 299 6,941,310 228,424 3.3% 7,540 0 0 1 60,000 $6.40

2007 1q 299 6,941,310 235,964 3.4% (116,419) 0 0 1 60,000 $6.44

2006 4q 299 6,941,310 119,545 1.7% 5,353 3 59,600 0 0 $6.10

2006 3q 296 6,881,710 65,298 0.9% 68,980 0 0 3 59,600 $5.57

2006 2q 296 6,881,710 134,278 2.0% 11,600 0 0 3 59,600 $5.53

2006 1q 296 6,881,710 145,878 2.1% 0 0 0 0 0 $6.19



(0.150)

(0.100)

(0.050)

0.000

0.050

0.100


MillionsSF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

PercentVacant


$5.40

$5.50

$5.60

$5.70

$5.80

$5.90

$6.00

$6.10

$6.20

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Dollars/SF/Year

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

MillionsSF

Direct SF Sublet SF


30/35




S O U T H C E N T R A L M A R K E T





Net Quoted


2009 4q 1,048 46,048,672 4,466,533 9.7% 7,495 0 0 0 0 $6.02

2009 3q 1,048 46,048,672 4,474,028 9.7% (206,844) 0 0 0 0 $6.07

2009 2q 1,048 46,048,672 4,267,184 9.3% (113,626) 0 0 0 0 $6.16

2009 1q 1,048 46,048,672 4,153,558 9.0% (27,848) 1 282,100 0 0 $6.06

2008 4q 1,048 45,945,618 4,022,656 8.8% 134,318 0 0 1 282,100 $6.24

2008 3q 1,048 45,945,618 4,156,974 9.0% (140,355) 1 36,000 0 0 $6.27

2008 2q 1,047 45,909,618 3,980,619 8.7% 92,875 3 357,726 1 36,000 $6.052008 1q 1,044 45,551,892 3,715,768 8.2% (12,460) 0 0 4 393,726 $6.08

2007 4q 1,044 45,551,892 3,703,308 8.1% (72,396) 3 209,806 3 357,726 $5.83

2007 3q 1,041 45,342,086 3,421,106 7.5% (65,435) 1 33,000 4 437,806 $5.60

2007 2q 1,040 45,309,086 3,322,671 7.3% 364,303 0 0 5 470,806 $5.76

2007 1q 1,040 45,309,086 3,686,974 8.1% 291,739 7 223,312 3 213,480 $6.10

2006 4q 1,033 45,085,774 3,755,401 8.3% (119,520) 0 0 7 223,312 $5.78

2006 3q 1,033 45,085,774 3,635,881 8.1% 450,693 1 12,312 7 223,312 $5.71

2006 2q 1,032 45,073,462 4,074,262 9.0% 96,658 1 1 3 75,012 $5.72

2006 1q 1,031 45,073,461 4,170,919 9.3% 0 3 40,198 3 60,313 $5.69



(0.300)

(0.200)

(0.100)

0.000

0.100

0.200

0.300

0.400

0.500


MillionsSF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

PercentVacant


$5.85

$5.90

$5.95

$6.00

$6.05

$6.10

$6.15

$6.20

$6.25

$6.30

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Dollars/SF/Year

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

MillionsSF

Direct SF Sublet SF


31/35




S O U T H W E S T M A R K E T





Net Quoted


2009 4q 1,358 66,104,185 4,825,633 7.3% 73,655 1 64,000 1 19,800 $6.10

2009 3q 1,357 66,040,185 4,835,288 7.3% 14,540 0 0 2 83,800 $6.17

2009 2q 1,357 66,040,185 4,849,828 7.3% 201,479 1 1,520 2 83,800 $6.17

2009 1q 1,356 66,038,665 5,049,787 7.6% 180,020 0 0 2 21,320 $6.19

2008 4q 1,356 66,038,665 5,229,807 7.9% 275,656 3 95,135 1 1,520 $6.21

2008 3q 1,353 65,943,530 5,410,328 8.2% 194,744 0 0 3 95,135 $6.08

2008 2q 1,353 65,943,530 5,605,072 8.5% 565,520 0 0 2 77,632 $6.082008 1q 1,353 65,943,530 6,170,592 9.4% (211,830) 3 175,366 0 0 $6.09

2007 4q 1,350 65,768,164 5,783,396 8.8% 81,662 1 42,440 3 175,366 $6.10

2007 3q 1,349 65,725,724 5,822,618 8.9% 305,744 2 127,900 4 217,806 $6.19

2007 2q 1,347 65,597,824 6,000,462 9.1% 881,596 4 218,712 3 214,900 $6.27

2007 1q 1,343 65,379,112 6,663,346 10.2% 764,632 3 196,611 6 346,612 $6.17

2006 4q 1,340 65,182,501 7,231,367 11.1% 120,536 2 127,036 8 494,223 $6.19

2006 3q 1,338 65,055,465 7,224,867 11.1% 348,833 2 52,334 6 439,084 $6.07

2006 2q 1,336 65,003,131 7,521,366 11.6% 490,384 0 0 6 326,981 $6.06

2006 1q 1,336 65,003,131 8,011,750 12.3% 0 6 220,759 2 52,334 $6.03



(0.400)

(0.200)

0.000

0.200

0.400

0.600

0.800

1.000


MillionsSF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

PercentVacant


$6.00

$6.05

$6.10

$6.15

$6.20

$6.25

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Dollars/SF/Year

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

MillionsSF

Direct SF Sublet SF


32/35




S T C R O I X C O U N T Y M A R K E T





Net Quoted


2009 4q 191 6,169,644 250,683 4.1% (8,733) 0 0 0 0 $4.57

2009 3q 191 6,169,644 241,950 3.9% 92,456 0 0 0 0 $5.59

2009 2q 191 6,169,644 334,406 5.4% (1,916) 0 0 0 0 $5.53

2009 1q 191 6,169,644 332,490 5.4% (39,423) 0 0 0 0 $6.46

2008 4q 191 6,169,644 293,067 4.8% (10,497) 0 0 0 0 $5.55

2008 3q 192 6,198,197 311,123 5.0% (80,586) 0 0 0 0 $5.24

2008 2q 192 6,198,197 230,537 3.7% 14,260 0 0 0 0 $4.902008 1q 192 6,198,197 244,797 3.9% 170,452 1 12,000 0 0 $5.01

2007 4q 191 6,186,197 403,249 6.5% 7,450 1 50,000 1 12,000 $6.41

2007 3q 190 6,136,197 360,699 5.9% (31,564) 1 6,000 2 62,000 $6.46

2007 2q 189 6,130,197 323,135 5.3% (3,907) 0 0 2 18,000 $6.57

2007 1q 189 6,130,197 319,228 5.2% 11,623 0 0 2 18,000 $5.34

2006 4q 189 6,130,197 330,851 5.4% (21,567) 0 0 0 0 $3.49

2006 3q 189 6,130,197 309,284 5.0% 1,516 1 12,000 0 0 $3.36

2006 2q 188 6,118,197 298,800 4.9% 40,290 0 0 1 12,000 $3.36

2006 1q 188 6,118,197 339,090 5.5% 0 1 11,000 1 12,000 $3.36



(0.100)

(0.050)

0.000

0.050

0.100

0.150

0.200


MillionsSF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

PercentVacant


$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Dollars/SF/Year

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

MillionsSF

Direct SF Sublet SF


33/35




S T P A U L M A R K E T





Net Quoted


2009 4q 411 13,648,514 778,062 5.7% 34,109 0 0 1 8,242 $5.21

2009 3q 411 13,648,514 812,171 6.0% (511) 0 0 1 8,242 $5.38

2009 2q 411 13,648,514 811,660 5.9% 29,524 0 0 1 8,242 $5.41

2009 1q 412 13,653,607 846,277 6.2% (54,170) 0 0 1 8,242 $5.70

2008 4q 412 13,653,607 792,107 5.8% 69,847 0 0 0 0 $6.19

2008 3q 412 13,653,607 861,954 6.3% 19,564 0 0 0 0 $6.05

2008 2q 412 13,653,607 881,518 6.5% 50,385 0 0 0 0 $5.872008 1q 412 13,653,607 931,903 6.8% 159,278 1 45,000 0 0 $6.50

2007 4q 411 13,608,607 1,046,181 7.7% (154,403) 0 0 1 45,000 $6.28

2007 3q 411 13,608,607 891,778 6.6% 74,635 0 0 1 45,000 $6.35

2007 2q 411 13,608,607 966,413 7.1% (214,169) 0 0 1 45,000 $5.92

2007 1q 411 13,608,607 752,244 5.5% (119,053) 0 0 1 45,000 $6.10

2006 4q 411 13,608,607 633,191 4.7% 71,348 0 0 1 45,000 $6.24

2006 3q 411 13,608,607 704,539 5.2% (12,254) 1 78,800 1 45,000 $6.12

2006 2q 410 13,529,807 613,485 4.5% (12,641) 0 0 2 123,800 $5.55

2006 1q 410 13,529,807 600,844 4.4% 0 1 67,580 2 123,800 $5.84



(0.250)

(0.200)

(0.150)

(0.100)

(0.050)

0.000

0.050

0.100

0.150

0.200


MillionsSF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

PercentVacant


$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Dollars/SF/Year

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

MillionsSF

Direct SF Sublet SF


34/35




S T E A R N S C O U N T Y M A R K E T





Net Quoted


2009 4q 158 5,256,221 361,348 6.9% (4,845) 0 0 0 0 $4.88

2009 3q 158 5,256,221 356,503 6.8% 72,732 0 0 0 0 $5.20

2009 2q 158 5,256,221 429,235 8.2% (37,795) 0 0 0 0 $5.62

2009 1q 158

Documents

Minneapolis Industrial Report