2015 Commercial Real Estate Forecast

Greg ShuttIndustrial Properties

Gross/Net Absorption

2015 Commercial Real Estate Forecast

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

(3,000,000)

(2,000,000)

(1,000,000)

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

Net Absorption Gross Absorption

Transactions by Size

Size RangeNumber of

TransactionsTotal Square

Feet% Of Gross % of Deals

5,000 to 10,000

53 343,542 5.3% 40%

10,000 to 25,000

32 549,658 7.9% 24%

25,000 to 50,000

18 571,354 8.9% 14%

50,000 to 100,000

12 791,504 12.3% 9%

100,000 + 17 4,214,207 65.6% 13%

Total 132 6,470,265 100% 100%

Average Deal Size

49,017

2015 Commercial Real Estate Forecast

Significant Deals of 2014

2015 Commercial Real Estate Forecast

Street Address Buyer/Tenant Sale/Lease Square Feet

1755 Purina LDS, Inc Lease 129,600 SF

14525 Industry Cir. Hubert North America Lease 142,500 SF

240 S. Stanford Pomona Industry Sale 158,040 SF

400/450 Parr Blvd Pop Weaver Lease 169,027 SF

10875 Sage Point Ct. Omatex Sale 181,400 SF

190 Resource Dr. Zloop LLC Sale 183,435 SF

Peru Dr. Battery Supply Sale 200,000 SF

700 USA Parkway Randa Lease 210,000 SF

525/645 Coney Island Dr. Ranshu Sale 294,333 SF

700 Milan Dr. Chewy.com Lease 303,870 SF

Spanish Springs San Mar Lease 606,000 SF

8000 North Valley Amazon Lease 624,000 SF

3200 USA Parkway Zulily Lease 707,010 SF

Largest Three Deals

Tenant Leased Vacated Net Absorption

San Mar 606,000 622,500 (16,500)

Amazon 624,000 589,520 34,480

Zulily 707,010 328,285 378,725

Totals 1,937,010 1,540,305 396,705

2015 Commercial Real Estate Forecast

Largest Three Buildings

2015 Commercial Real Estate Forecast

Industrial Vacancy

2015 Commercial Real Estate Forecast

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

9.06%

9.73%

11.00%

9.10%

7.14%

5.46%

9.40%

13.21%

15.58%

15.54%

14.70% 13.90%

9.22%

8.60%

BTS & New Spec

2015 Commercial Real Estate Forecast

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 -

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

BTS New Spec.

Market Growth

Tenant Square Feet Location Type

Chesapeake Spice             70,240 SF South Meadows BTS

Battery Supply           200,000 SF TRIC BTS

San Mar           606,000 SF  Spanish Springs  BTS

Amazon           624,000 SF  Golden Valley  Spec

Zulily           707,010 SF  TRIC  BTS

Totals        2,207,250 SF

2015 Commercial Real Estate Forecast

New Industrial Construction

2015 Commercial Real Estate Forecast

Forecasted Spec/BTS 2015

2015 Commercial Real Estate Forecast

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 -

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

BTS New Spec.

Tesla Comes To Reno

2015 Commercial Real Estate Forecast

2014 Portfolio Sales

Project/Portfolio Buyer Seller Square Feet

Southwest Commerce

Cornerstone MEPT/Kennedy 870,000 SF

Sierra Commerce Center

LBA USAASF 1,500,000 SF

Brookside Business Park

LPC GE Capital 260,000 SF

2015 Commercial Real Estate Forecast

2015 Industrial Forecast

Rents

Vacancy

Absorption

Construction

2015 Commercial Real Estate Forecast