1. ALABAMA COMMERCIAL PROPERTY UPDATE Presented by: Donald Gambril Morgan Solomon Caleb Davis Carter Harsh Data Provided by: &

2. MULTIFAMILY

3. Huntsville - Multifamily Market Rate

4. Huntsville - Multifamily New Construction Deliveries 250+ units Belk Hudson Lofts Under Construction 700+ units Addison Park, Limestone Creek, Providence Place Pending/Planned 1800+ units Belk Hudson Lofts

5. Birmingham - Multifamily Market Rate

6. Birmingham - Multifamily New Construction Deliveries 740+ units 29 Seven, The Hill, Parc @ Grandview, Tapestry Park Under Construction 650+ Ashby @ Ross Bridge, Lane Park, Vulcan Park Pending/Planned 2400+ units 10+ properties Tapestry Park The Hill

7. Montgomery - Multifamily Market Rate

8. Montgomery - Multifamily New Construction 250+ units Includes 207 LIHTC units Under Construction 600+ units Grand Reserve at Pike Road Pending/Planned 770+ units The Grand Reserve at Pike Road

9. Mobile - Multifamily Market Rate

10. Mobile - Multifamily New Construction 1090+ units Campus Quarters, Crossings at Cottage Hill, Woodside Under Construction 90+ units Pending/Planned 400+ units Campus Quarters

11. Alabama - Multifamily Improvement Consistent with National Trends YTY construction starts up (↑39.5%) nationally** YTY decrease in unemployment (↓0.7%) Shift in preferences towards flexibility of renting *axiometrics.com ** US Census

12. RETAIL

13. Huntsville - Retail OccupancyMarket Rate

14. Huntsville - Retail Deliveries 14 Properties Total RBA= 589,808 sq. ft. Shoppes of Madison Under Construction No new construction reported for 2013 Top Leases 200 NE Oakwood Ave; 47,293 sq. ft. 1st Quarter 2012 North Huntsville University Plaza 24,980 sq. ft. (Home Goods) North Huntsville 3 rd quarter 2012

15. Birmingham – Retail Occupancy Market Rate

16. Birmingham – Retail Deliveries 8 Properties Total RBA= 85,214 sq. ft. Walgreens (Clairmont Avenue) 20,000 sq. ft. Under Construction 9 Properties (5 in Tuscaloosa) Total RBA = 211,546 sq. ft. Elevated 136,000 sq. ft. Target at Brookwood Mall Opening March 2013 Westin Hotel and Entertainment District Regions Field (Birmingham Barons) Opening April 2013 Expected to be catalyst for retail development Top Leases 6400 Aaron Aronov Dr (The Foundry Rescue Mission) 104,620 sq. ft. 4th Quarter 2012 Bessemer Winn Dixie at Inverness Corners 50,000 square feet Signed January 2013

17. Montgomery – Retail Occupancy Market Rate

18. Montgomery – Retail Deliveries 1 Property (North Montgomery) Total RBA= 5,000 sq. ft. Under Construction No confirmed new construction reported for 2013 Proposed Mixed-Use project in CBD 16,000 sq. ft. of retail under 65 class A apartments Top Leases 3801 Eastern Blvd. (North Montgomery) 1st Quarter 2012 Total RBA= 30,000 sq. ft. Phillips, Edison, & Company

19. Mobile – Retail OccupancyMarket Rate

20. Mobile - Retail Deliveries 2 Properties (1 West Mobile, 1 Midtown) Total RBA= 13,178 sq. ft. Under Construction No new construction reported for 2013 Top Leases Hillwood Center (White-Spunner & Associates) Publix 1st Quarter 2012 Total RBA= 45,600 sq. ft.

21. Alabama – Retail Occupancy - 4 th quarter 2012 Occupancy consistent with National trends Average statewide occupancy 4 th quarter = 93% Occupancy rates remained stable since 2009 with slight increases in 2012. Huntsville had positive net absorption 4 th quarter 2012 Flat net absorption in Mobile market Negative net absorption 4 th quarter 2012 in both Birmingham and Montgomery

22. OFFICE

23. Huntsville – Office OccupancyMarket Rate Class A Class B Total

24. Huntsville – Office Deliveries 2 Properties Total RBA= 242,000 SF Under Construction 2 Properties Total RBA =221,000 SF Significant Leases Redstone Gateway, 4 Buildings – 121,000 SF/ each Boeing agreed to lease 3 buildings Dynetics leased 1 building

25. Birmingham – Office OccupancyMarket Rate Class A Class B Total

26. Birmingham – Office Significant Deliveries 2 Properties Total RBA= 72,500 SF No Properties Currently Under Construction Significant Leases Regions Plaza - 85,626 SF Colonnade 3500- 59,564 SF Concord Center – 54,742 SF Grandview II- 33,385 SF Regions Plaza Concord Center Cardiovascular Assoc. Levall Building

27. Montgomery – Office OccupancyMarket Rate Class A Class B Total

28. Montgomery – Office No New Deliveries in 2012 No Properties Currently Under Construction Significant Sales and Leases One Commerce Street- 125,000 SF, Sale $13.6 M 2545 Taylor Rd- 60,000 SF 445 Dexter Av- 18,000 1 Dexter Plaza- 16,000 445 Dexter- RSA One Commerce

29. Mobile – Office OccupancyMarket Rate Class A Class B Total

30. Mobile – Office No New Deliveries in 2012 No Properties Currently Under Construction Significant Leases Research Park Bldg III - 11,110 SF 22 Mobile St- 4,500 - SF

31. Alabama – Office Occupancy Strong Occupancy Compared to National Average Average occupancy 3% higher than national average Since 2011 All for major markets have stabilized around 90% New Deliveries and construction well below national average Average market rate in Alabama $14.23 compared to national average of $23.12

32. INDUSTRIAL

33. Huntsville – Industrial OccupancyMarket Rate

34. Huntsville – Industrial Deliveries 2 Properties Total RBA= 73,434 SF Under Construction There is no new construction scheduled to be delivered in 2013 Significant Leases 4905 Moores Mill Rd -1,370,974 SF Third Qtr. 9805 Kellner Rd - 143,965 SF Third Qtr.

35. Birmingham – Industrial OccupancyMarket Rate

36. Birmingham – Industrial Deliveries 2 Properties Total RBA= 1,038,000 SF 100% Occupied Significant Leases 165 Goodrich Dr Tenant: NDI Office Furniture 61,658 SF 1000 Pinehill Rd 45,000 SF Under Construction There is no new construction scheduled to be delivered in 2013

37. Montgomery– Industrial OccupancyMarket Rate

38. Montgomery – Industrial Deliveries No New Deliveries Under Construction No New Projects Under Construction Significant Leases Hodges Dixie Warehouse – 40,000 SF Third Qtr. 3345 Aronov Ave – 20,000 SF Third Qtr.

39. Mobile – Industrial OccupancyMarket Rate

40. Mobile – Industrial Deliveries 1 Property Total RBA= 7,531 SF 100% Occupied Under Construction There is no new construction scheduled to be delivered in 2012 Significant Leases 3406 Georgia Pacific Ave – 24,600 SF Alabama Roof Supply 65 Sidney Philips Dr – 21,100

41. Alabama – Industrial Below Average Occupancy Compared to National Average Average occupancy 4% below national average Birmingham has had a stable market since 2008 2012 New Deliveries: National: 66,827,568 SF Alabama: 1,118,965 SF 1.7%

42. THANK YOU Tanner Sumners Office Real Estate Mentor David Oakley Multifamily Real Estate Mentor Robert Jolly Retail Real Estate Mentor Jack Brown Industrial Real Estate Mentor Mentors