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INDUSTRIAL MARKET OVERVIEW

Industrial Market Overview September 2005 prepared for Presented by Raymond A. Stache Senior Director Cushman & Wakefield. INDUSTRIAL MARKET OVERVIEW. Table of Contents. Drivers Mid-Year Statistics Trends Bulk Warehouse Market User Sales Market Flex Market Investment Sales Conclusion.

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INDUSTRIAL MARKET OVERVIEW

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  1. Industrial Market Overview September 2005prepared forPresented by Raymond A. StacheSenior DirectorCushman & Wakefield

  2. INDUSTRIAL MARKET OVERVIEW Table of Contents • Drivers • Mid-Year Statistics • Trends • Bulk Warehouse Market • User Sales Market • Flex Market • Investment Sales • Conclusion

  3. INDUSTRIAL MARKET OVERVIEW Drivers Factors Effecting the Market • 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

  4. INDUSTRIAL MARKET OVERVIEW 2005 Mid-Year Statistics • YTD Leasing Activity 2Q 2005 13,642,524 sf 2Q 2004 12,017,408 sf TOTAL Leasing 2004 24,500,000 sf • YTD Overall Absorption 2Q 2005 6,481,026 sf 2Q 2004 3,034,781 sf TOTAL Overall Absorption 2004 10,700,000 sf • Record Overall Absorption 1999 14,700,000 sf

  5. INDUSTRIAL MARKET OVERVIEW Trends Trends 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

  6. 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

  7. INDUSTRIAL MARKET OVERVIEW

  8. INDUSTRIAL MARKET OVERVIEW FLEX MARKET (Greater than 30% Office) • Continues to Struggle • Competing with Class B Office at $13.00 - $15.00 Full Service Gross • Expect through 2006 time needed to correct the market

  9. 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

  10. INDUSTRIAL MARKET OVERVIEW Bosch Distribution Center 375,000 SF Result: Built in 2003 12 Bidders Tenant – Bosch 4 Finalists Lease – 4 years flat over term 7 CAP Closed in 75 days from initial package mailing $40.00 PSF

  11. INDUSTRIAL MARKET OVERVIEW Conclusion Continued Optimism “More Good Things to Come”

  12. INDUSTRIAL MARKET OVERVIEW Global Coverage

  13. Cushman & Wakefield, Inc.3300 One Atlantic Center 1201 West Peachtree St. Atlanta, GA 30309

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