Industrial Market Overview September 2005 prepared for Presented by Raymond A. Stache Senior Director Cushman & 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 Drivers Factors Effecting the Market

INDUSTRIAL MARKET OVERVIEW ■ YTD Leasing Activity 2Q ,642,524 sf 2Q ,017,408 sf TOTAL Leasing ,500,000 sf ■ YTD Overall Absorption 2Q 20056,481,026 sf 2Q 20043,034,781 sf TOTAL Overall Absorption ,700,000 sf ■ Record Overall Absorption ,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 Trends

INDUSTRIAL MARKET OVERVIEW REVIEW CAMP CREEK CORRIDOR ■ Land Constraints Rock, Topography, Water, Residential Development ■ 3-year Absorption of Bulk 8,000,000 Square Feet in 3 Years 15 Transactions ■ Annual Absorption 2,666,660 Per Year ■ Land Inventory 906 Acres; 8,900,000 Square Feet; 3.34 Years

INDUSTRIAL MARKET OVERVIEW NORTHEAST I-85 USER SALES MARKET Group Count of # Sales Average of Building SF Average of Price Per SF (Gross) 2004 < 50,000 sf6220, > 100,000 sf32206, ,000 – 100,000 sf2872, Total12281, < 50,000 sf5018, > 100,000 sf11187, ,000 – 100,000 sf2772, Total8856, Average Price Per SF50.49

INDUSTRIAL MARKET OVERVIEW FLEX MARKET (Greater than 30% Office) ■ Continues to Struggle ■ Competing with Class B Office at $ $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 SFResult: Built in Bidders Tenant – Bosch 4 Finalists Lease – 4 years flat over term7 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

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