1. Chicago Metropolitan Industrial Market Overview November 16 2010
Prepared by:
George Cutro
Colliers International

2. Industrial Market Presentation Outline
Chicago’s Industrial Market Statistics
Chicago’s “Core” Markets
Central DuPage
Fox Valley
I-55
Lake County
North Suburbs
O’Hare
Largest Transactions of 2010
Changes and Industry Trends

3. Chicago Industrial Market Area

4. Metro Chicago Gross Absorption
Sq. Ft. Millions
46.88
43.37
46.06
49.72
46.87
59.78
57.20
53.38
45.5
38.56

5. Metro Chicago Construction Deliveries
Sq. Ft. Millions
19.85
12.27
13.36
15.22
17.54
20.90
20.86
21.84
19.10
6.80

6. Metro Chicago Net Absorption
Sq. Ft. Millions

7. Metro Chicago Vacancy Rates

8. Central DuPage Inventory 83.97 msf Available SF 9.93 msf
Vacancy Rate %
YTD Leasing Volume (sf) msf
YTD Sales Volume (sf) 197,300 sf
YTD Net Absorption (sf) ,000 sf
Central DuPage Notes
Vacancy rate climbs!
2010 leasing volume down.
Demand up for buildings for sale.
Rents higher for “Core” product near I-355 expressway.

9. Fox Valley Inventory 89.10 msf Available SF 12.06 msf
Vacancy Rate %
YTD Leasing Volume (sf) msf
YTD Sales Volume (sf) msf
YTD Net Absorption (sf) msf
Fox Valley Notes
Available supply dropping
Sale volume spikes
Positive absorption!

10. I-55 Corridor Inventory 72.94 msf Available SF 12.87 msf
Vacancy Rate %
YTD Leasing Volume (sf) msf
YTD Sales Volume (sf) 666,700 sf
YTD Net Absorption (sf) msf
I-55 Corridor Notes
YTD leasing volume down.
Net absorption negative!
Speculate development non-existent
17.64 % highest vacancy rate ever!

11. Lake County Inventory 69.95 msf Available SF 10.15 msf
Vacancy Rate %
YTD Leasing Volume (sf) 1.20 msf
YTD Sales Volume (sf) 401,000 sf
YTD Net Absorption (sf) ,500 sf
Lake County
Vacancy rate falls!
Third quarter net absorption posts positive results!
Local company expands presence in market.

12. North Suburbs Inventory 57.65 msf Available SF 5.90 msf
Vacancy Rate %
YTD Leasing Volume (sf) 255,700 sf
YTD Sales Volume (sf) 172,700 sf
YTD Net Absorption (sf) msf
North Suburbs
Vacancy rate at all-time high.
Inventory continues to shrink.
Sale activity Anemic!

13. O’Hare Inventory 140.18 msf Available SF 17.50 msf
Vacancy Rate %
YTD Leasing Volume (sf) msf
YTD Sales Volume (sf) ,200 sf
YTD Net Absorption (sf) ,100 sf
O’Hare Notes
Vacancy rate hits all time high.
Leasing activity up.
6B Tax program still obtainable.
Freight forwarders in play

14. Top Lease Transactions 2010
Clorox 1,350,000 sf Far South
World Kitchen, LLC ,200 sf Far South
3M ,000 sf DeKalb Co.
Sony Music Entertainment 579,900 sf I-55
BP North American 574,300 sf NW Ind.
Jacobson Companies “Fonterra Milk Prdts” 507,200 sf I-80
AGL Direct ,200 sf I-55
Midwest Custom Case, Inc ,900 sf Far South
NACA Logistics USA, Inc ,200 sf Central DuPage
Hosely International Trading Company 376,000 sf NW Ind.

15. Top User Sale Transactions
Uline ,000,000 sf SE Wis.
Freudenberg Household Products 525,000 sf I-88
R. R. Donnelley ,000 sf I-88
MAT Holdings ,800 sf I-55
Ionian, LLC ,800 sf Chicago
Gordon Food Service 480,000 sf SE Wis.
The Jel Sert Company 304,500 sf I-88
GRM Information Management Svc’s 296,100 sf South Subs.
Ascent Corporation 284,200 sf I-290 North
EMCO Chemical Distributors 259,600 sf SE Wis.

16. Metro Chicago Trends
Speculative development dead, however BTS construction volume up
Institution/REIT Landlords compete hard for deals
Land prices falling???
Cap rates for “Core Product” falling
Some landlords not competing for high TI transactions
Ownership stability