Burst of fourth quarter activity points to robust early 2017 absorption

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1 Research & Forecast Report MINNEAPOLIS-ST. PAUL INDUSTRIAL Quarter Burst of fourth quarter activity points to robust early 2017 absorption Vacancy and absorption trends The vacancy rate in the industrial market is 6.9 percent, a low not seen since prior to This rate is down from 7.1 percent during the third quarter. There was 377,640 square feet of absorption, bringing the 2016 total to 2,632,291 square feet. This is lower than 2015 s peak of 2,958,812 square feet, but well above the 10-year average of just over 1 million square feet. The Minneapolis submarket led the way with 266,472 square feet absorbed for the quarter. At ern Stacks Building II, which was completed during the third quarter, Trio Supply and MB2 Raceway combined to fully lease the 135,000-square-foot building. While the Quarter Four absorption total was the lowest quarterly total in 2016, it is a reflection of a summer and pre-election stall in leases signed, leading to fewer tenants moving during the last quarter of the year. The lower absorption number belies a flurry of activity seen in the market in the last months of The easing of uncertainty resulted in a significant uptick in activity postelection. As a result, we expect first and second quarter of 2017 absorption to be more robust than the fourth quarter of Percent Vacant Market Indicators Relative to prior period Q VACANCY NET ABSORPTION RENTAL RATE Vacancy 20% 15% 10% 5% % % 8.6% Net Absorption 10.4% 13.1% 12.5% 11.5% 10.5% 9.4% 8.6% 8.1% 6.9% (Q4) SF Absorbed 2,958,812 4,000,000 2,782,090 2,011,292 3,000,000 2,632,291 1,410,063 1,369,692 1,677,707 2,000,000 1,355, ,877 1,261,325 1,000,000 0 (1,000,000) (2,000,000) (3,000,000) (4,000,000) (928,872) (2,430,461) (YTD Q4) SUBSCRIBE TO OUR BLOG

Q4 Absorption Q4 Vacancy SF Absorbed 400,000 200,000 0 (200,000) 266,472 63,476 19,958 30,252 (2,518) Percent Vacant 10 8 6 4 2 5.3% 5.3% 6.6% 6.4% 9.

the submarket at 9.3 percent, largely due to vacancy among bulk warehouse properties. There is over 1.5 million square feet of bulk warehouse space available and a vacancy rate of 12.

2 Q4 Absorption Q4 Vacancy SF Absorbed 400, ,000 0 (200,000) 266,472 63,476 19,958 30,252 (2,518) Percent Vacant % 5.3% 6.6% 6.4% 9.3% (400,000) Airport/South of the River Minneapolis East West/ west 0 Airport/South of the River Minneapolis East West/ west Vacancy and Absorption Trends (continued) The vacancy rate is highest in the submarket at 9.3 percent, largely due to vacancy among bulk warehouse properties. There is over 1.5 million square feet of bulk warehouse space available and a vacancy rate of 12.8 percent, compared to an 8.4 percent bulk warehouse vacancy for the overall market. A significant amount of the bulk warehouse vacancy is located in the cities of Rogers and Dayton. As of Quarter Four of 2016, 32 percent of the vacancy in the entire bulk warehouse market was located in these cities, which comprise just 5.3 percent of the bulk warehouse inventory. Over the last few months, a jump in activity in these locations has led to several deals that will have a big impact on bulk warehouse vacancy in coming quarters. Reflected in the fourth quarter, King Solutions leased 84,837 square feet at Dayton Distribution Center. Additional leases signed that will further impact 2017 absorption include: > Graco leased 100,000 square feet Rogers Distribution Center at George Weber Drive in Rogers. > Spears Manufacturing leased 142,680 square feet at Dayton Distribution Center in Dayton. Landlords at these properties were aggressive in rental rates and lease terms to attract these tenants. Sale Activity Investor interest in the Minneapolis- metropolitan area is strong and extending to outer ring suburbs. The Excelsior Group sold I-94 Distribution Center in Rogers for almost $7 million more (a 75 percent increase) than their original purchase in This sale is particularly significant due to the competitive price paid, and the fact that it is an investment sale in a market where user-ownership is more common. Owner-user properties are also seeing robust demand. There is, however a limited supply of well-located buildings available for sale in the urban core. Properties that are offered for sale are quickly snapped up by eager buyers. Future Trends While interest rates are increasing, we don t expect the initial bumps upward to push many users from the sale market to the leasing market, or to significantly push out potential investment. The local and national investment community continues to show interest in the strong economic fundamentals present in the Minneapolis- area and 2017 will continue tosee strong investor interest. We predict robust absorption and continued decreasing vacancy during the first and second quarters of Local large users finding deals in west Metro Rogers Distribution Center Dayton Distribution Center Graco 100,000 SF King Solutions 84,837 SF Spears Manufacturing 142,680 SF 2 Minneapolis- Research & Forecast Report Quarter 4 Industrial Colliers International

Spotlight Trend: National Industrial Activity Breaks Records Between the record-breaking activity in the second quarter and the lull that summer months often bring, many expected more normal growth

3 Spotlight Trend: National Industrial Activity Breaks Records Between the record-breaking activity in the second quarter and the lull that summer months often bring, many expected more normal growth patterns for U.S. industrial real estate in Q But industrial sector fundamentals powered forward in the third quarter to reach new heights. Net absorption crushed the previous record, construction reached all-time highs and asking rental rates rose for the 13th consecutive quarter. National demand continues to be driven by strong e-commerce sales and steady economic fundamentals. Activity is robust in core industrial markets and is expanding rapidly in secondary markets near inland ports and large population centers. Retailers, wholesalers and third-party logistics companies are all scrambling to find space near these locations to gain competitive advantage and get products to consumers faster. Industrial rents remain a relatively small portion of overall supply chain expenses and as such, we expect to see warehouses absorbed at an elevated rate for the foreseeable future. Only an unexpected disruption to the overall economy will slow the flow of industrial demand in the coming year. Tightening markets and new, more expensive Class A space, drove up asking rents in Q to $5.75 per square foot per year (PSF/ YR), an all-time record for the country (not adjusted for inflation). Asking rents for distribution space increased year-over-year in 89 percent of the markets we track. After a slow first half of 2016, an uptick in large portfolio sales helped increase transaction volume to $14 billion in Q3 2016, a 3 percent increase over Q Single-building investors continue to push into secondary and tertiary markets, with sales increasing 11 percent compared with the same time last year. MOST ABSORPTION FOR A QUARTER ON RECORD 87.5 MSF (PREVIOUS RECORD 77.0 MSF Q2 2016) LOWEST VACANCY ON RECORD 5.7% (PREVIOUS RECORD 6.0% Q2 2016) ECOMMERCE SALES GREW IN Q BY 16% (COMPARED TO Q2 2015, DWARFING THE 2 PERCENT OVERALL RETAIL GROWTH RATE FOR THE SAME TIME PERIOD) Minneapolis- Research & Forecast Report Quarter 4 Industrial Colliers International 3

4 Ramsey 94 Andover Ham Albertville St. Michael Hanover Greenfield Maple Plain Minnetrista Mound Victoria 5 Chanhassen Chaska Otsego Independence Spring Rogers Corcoran Loretto 55 Medina Orono Tonka Bay Shorewood Excelsior 169 Elk River Wayzata Minnetonka Deephaven Greenwood Maple Grove Plymouth Dayton 494 Shakopee Champlin Hopkins Eden Prairie Osseo Industrial Under Construction 169 Anoka New Hope St. Louis Edina 13 Brooklyn Minneapolis Bloomington Brooklyn Center Coon Rapids Crystal Robbinsdale 169 Golden Valley 35W Richfield Spring 35E 65 Blaine Mounds View Fridley New Brighton Columbia Heights Saint Anthony 55 Airport/ South of the River 77 Circle Pines Lexington Shoreview Arden Hills 35E 94 Eagan 13 Apple 3 Valley Roseville Lauderdale Columbus Minneapolis Lino s Vadnais Heights West Mendota Heights 35W Centerville Oaks Little Canada Rosemount 35E Maplewood South Inver Grove Heights Gem Grant White Bear Willernie Stillwater 694 Pine Springs 36 Woodbury Forest Hugo Dellwood 10 Elmo Oakdale 94 East Afton Cottage Grove Scandia 5 61 OVERALL MARKET > 1,267,626 SF under construction > 480,600 SF speculative > 787,026 SF BTS MINNEAPOLIS NORTH > 535,200 SF > 2 projects WEST/NORTHWEST > 263,384 SF > 2 projects SOUTHWEST > 373,042 SF > 4 projects ST. PAUL EAST > 0 SF > 0 projects AIRPORT/SOUTH OF THE RIVER > 96,000 > 1 project Industrial Under Construction PROPERTY NAME ADDRESS CITY SUBMARKET SF Mendota Heights Business land Drive & Pilot Knob Rd Mendota Heights Airport/South of the River 96,000 Distribution Alternatives County Road 14 Lino s Minneapolis 402,000 ern Stacks III 4800 E. River Road Fridley Minneapolis 133,200 Japs-Olson Expansion 7500 Excelsior Blvd St. Louis 192,000 Valley Businses Center Bldg III 750 Innovation Dr Shakopee 122, Eagle Creek Pkwy 8720 Eagle Creek Pkwy Savage 31,680 IDI Distributors Expansion 8251 Audubon Rd Chanhassen 26,962 Waterford Innovation Center - Intereum 9805 Highway 169 Plymouth 134,384 Brooklyn Boulevard Industrial Center 8297 Brooklyn Blvd Brooklyn 129,000 4 Minneapolis- Research & Forecast Report Quarter 4 Industrial Colliers International

Significant Lease and Sales Activity Lease Activity TENANT BUILDING NAME ADDRESS CITY SIZE SUBMARKET TYPE NC Minerals LLC 1080 Pl 1080 Pl Shakopee 201,600 New Spears Manufacturing Dayton Distribution

5 Significant Lease and Sales Activity Lease Activity TENANT BUILDING NAME ADDRESS CITY SIZE SUBMARKET TYPE NC Minerals LLC 1080 Pl 1080 Pl Shakopee 201,600 New Spears Manufacturing Dayton Distribution Center Holly Ln Dayton 142,680 New King Solutions Dayton Distribution Center Holly Ln Dayton 84,837 New Trio Supply ern Stacks Bldg II 4605 E River Rd Fridley 77,000 Minneapolis New MB2 ern Stacks Bldg II 4605 E River Rd Fridley 57,000 Minneapolis New Dero Bike Racks/Everest Climbing Industries ern Stacks Bldg III 4800 E River Rd Fridley 97,984 Minneapolis New Lion's Head Wheel and Tire 212 Business Center 717 Faxon Rd N Norwood Young 51,384 New America XPO Aldrin Distribution Center I 935 Aldrin Dr Eagan 50,122 Airport/South of the River New 3PL Aldrin Distribution Center I 935 Aldrin Dr Eagan 49,878 Airport/South of the River Sublease Renters Warehouse Staring Corporate Center Pioneer Trl Eden Prairie 33,043 Sublease Wicks Cabinets 212 Business Center 717 Faxon Rd N Norwood Young 24,632 New America Lifting Gear Hire Flagship Business Campus IV 875 Blue Gentian Rd Eagan 22,761 Airport/South of the River New JAK Leather 212 Business Center 717 Faxon Rd N Norwood Young 21,348 New America BRC Mid-City Hoover Hoover St Minneapolis 20,408 East New Hamernick Decorating Saint Paul Industrial Properties 23/ Terrace Dr Roseville 20,340 Minneapolis New Pro-Tec Design Baker Technology Plaza 5929 Baker Road Minnetonka 13,000 New WES LLC Waters Business Center V 2955 Lone Oak Dr Eagan 19,645 Airport/South of the River New 1080 Place NC Minerals leased 201,600 square feet at the 299,600-square-foot 1080 Place building. Silgan Container, a tenant in the building, downsized and will continue to occupy the remaining space. Minneapolis- Research & Forecast Report Quarter 4 Industrial Colliers International 5

Sales Activity PROPERTY NAME ADDRESS CITY SUBMARKET BUYER SELLER SF PRICE PRICE PSF Carlson Business Center I-VIII Star Exhibits Westside Center I-94 Distribution Center 5801 Clearwater Drive Osborne

6 Sales Activity PROPERTY NAME ADDRESS CITY SUBMARKET BUYER SELLER SF PRICE PRICE PSF Carlson Business Center I-VIII Star Exhibits Westside Center I-94 Distribution Center 5801 Clearwater Drive Osborne Commerce Center I Valley View Business Center I 6601 way Circle Integra Group Building White Bear 141 Cheshire Ln Plymouth rd Ave N 5320 W 23rd St Industrial Blvd 5801 Clearwater Dr 191 Osborne Rd NE 9701 Valley View Rd 6601 way Cir th Ave N 1828 Buerkle Rd Brooklyn St. Louis WPT Industrial REIT Carlson RE Co 560,378 $46,200,000 $82 STAG Industrial Ryan Companies 200,800 $20,780,000 $103 Capital Partners (MN) Hillcrest Development 200,000 $22,500,000 $113 Rogers Dalfen America Excelsior Group 297,756 $16,400,000 $55 Minnetonka Fridley Eden Prairie Brooklyn Center Brooklyn White Bear Minneapolis Minneapolis 101 7th Avenue 101 7th Ave Newport East Charles Feldman; Apres Party and Tent Rental Meritex Enterprises The Terrace Group Henry & Judy Kumagai Goldridge Group LLP Wasatch Storage Partners Refining Co LLC Andy Juang; Equus Computer Systems Steiner Development Welsh Property Trust 96,806 $5,712,500 $59 101,600 $5,550,000 $55 92,771 $5,250,000 $57 Interstate Partners 73,903 $5,050,000 $68 Christopher Pulling; Integra Group 24,000 $4,500,000 $188 Monmouth REIT 59,425 $4,271,845 $72 Markid Properties Ii LLC 90,171 $3,690,000 $ Mckinley Street 1100 McKinley St Anoka John Schaller Tim Chies 55,685 $3,080,000 $ Quebec Avenue 4800 Quebec Ave N New Hope Pioneer Metal Finishing Howard Natzel 55,372 $3,030,000 $55 Carlson Business Center WPT Industrial REIT purchased Carlson Business Centers I-VIII for $46.2 million. Carlson Cos. sold the eight office and warehouse buildings, totaling 560,378 square feet in the company s latest sale of its real estate. Minneapolis- Research & Forecast Report Quarter 4 Industrial Colliers International

38-acre site at 147th Street and Johnny Cake Ridge Road in Apple Valley for $400,000. The company is planning a speculative office warehouse building.

7 Airport/South of the River > The vacancy rate in the Airport/South of the River submarket is 5.3 percent, down from 5.9 percent in the third quarter. There was 63,476 square feet of absorption bringing the 2016 total to 651,521 square feet. > Scannell Properties purchased an 8.38-acre site at 147th Street and Johnny Cake Ridge Road in Apple Valley for $400,000. The company is planning a speculative office warehouse building. Neighbors to the site include Abdallah Candies 83,000 square foot manufacturing facility and a new Menards megastore under construction. > Menards is also planning the eventual construction of 130,000 square feet of medical office space and an additional 80,000 square feet of new industrial space on the site located at Johnny Cake Ridge Road and County Road 42. > United Properties has 96,000 square feet under construction in Mendota Heights at Mendota Heights Business, a speculative office warehouse project. Highway 55 Distribution Center II Dart Transit absorbed 84,000 square feet at its recentlycompleted Highway 55 Distribution Center II in Eagan. There is an additional 60,000 square feet of space for lease at the 144,000-square-foot facility. Minneapolis > The Minneapolis submarket outperformed all of the industrial submarkets we track during the third quarter. There was 266,472 square feet of absorption, over 80 percent of the absorption that occurred in the market. Annual absorption totaled 852,427 square feet, the most of any submarket. > The vacancy rate is 5.3 percent, down from 5.9 percent at Quarter Three. > Activity has been brisk at ern Stacks, Hyde Development s redevelopment in Fridley. The location is the last prime new construction option in the inner ring of the metropolitan area. - Trio Supply leased 77,000 square feet and MB2 leased 57,000 square feet at ern Stacks Building II in Fridley. - Dero Bike Racks and Everest Climbing Industries, which are subsidiaries of PlayCore, a playground and fitness equipment manufacturer, leased a combined 97,984 square feet at ern Stacks III in Fridley. ern Stacks II is under construction with completion scheduled for April. Streamworks Construction was completed on Streamworks new headquarters building in Blaine. The digital marketing firm is moving from Arden Hills into the 88,000-square-foot building developed by CSM at their Lexington Preserve Business. > United Properties is under construction on a 402,000-squarefoot bulk warehouse building with 32 foot ceiling heights for Distribution Alternatives in Lino s. Minneapolis- Research & Forecast Report Quarter 4 Industrial Colliers International

> The vacancy rate in the submarket is 6.6 percent and absorption totaled 19,958, bringing the annual absorption total to 505,061 square feet for the year.

3 million square feet of construction was completed, including Amazon s 820,000-square-foot distribution center.

> Additional activity in Shakopee includes United Properties plan for a 229,850-square-foot distribution center and a 178,500 square-foot-manufacturing and office property on a 24-acre site near

8 > The vacancy rate in the submarket is 6.6 percent and absorption totaled 19,958, bringing the annual absorption total to 505,061 square feet for the year. > A significant amount of industrial build-to-suit construction was completed during 2016 in the City of Shakopee. Over 1.3 million square feet of construction was completed, including Amazon s 820,000-square-foot distribution center. In addition, facilities for AmerisourceBergen, Rahr Malting and Milestone AV were constructed. > Additional activity in Shakopee includes United Properties plan for a 229,850-square-foot distribution center and a 178,500 square-foot-manufacturing and office property on a 24-acre site near Canterbury. Canterbury purchased a corn maze near the race track and has plans for a mixed-use development with multifamily, office, retail and hotel. > Properties under construction include Opus 122,400 square foot Valley Businses Center III in Shakopee and a 26,962 square foot expansion at IDI Distributors in Chanhassen. Shakopee Build-to-Suit Construction 820,000 SF 242,000 SF 216,000 SF 112,000 SF East > The vacancy rate in the East submarket is 6.4 percent, up from 5.8 percent during the third quarter. Vacancy increased in spite of positive absorption due to new construction completed with vacancy. > There was 30,252 square feet of positive absorption and the submarket posted 338,280 square feet for the year. > Tierney Bros., an audio-visual and technology company, moved into 52,000 square feet in November at the new property. > 455 Hardman Avenue in South, a 40,000-squarefoot office warehouse property, was also completed during the quarter. Owner-user Bonfe moved in and there is a remaining 12,198 square feet for lease. Midway Stadium Business Center Midway Stadium Business Center, located on the site of the former Saints Stadium, was completed. United Properties collaborated with the Port Authority to redevelop the location into a 195,000-square-foot office warehouse building. 8 Minneapolis- Research & Forecast Report Quarter 4 Industrial Colliers International

9 > The vacancy rate in the submarket is 9.3 percent, up from 8.9 percent in the third quarter. There was 2,518 square feet of negative absorption, but the annual 2016 absorption total was positive at 285,002 square feet. > Construction was completed on the 200,800 square foot headquarters for Star Exhibits in Brooklyn, developed by Ryan Companies. > Additional construction completed in the submarket includes the 116,200 square foot expansion Duke Realty completed for Blu Dot in Otsego and New Hope Corporate Center, a 48,000 square foot speculative project developed by Industrial Equities. > Duke Realty is building a 134,384 square foot office warehouse property in Plymouth for Intereum, an office-furniture dealer. Also under construction is Industrial Equities 129,000 square foot Brooklyn Boulevard Industrial Center in Brooklyn. Star Exhibits Carlson Real Estate Company sold Carlson Business Center, a complex totaling 560,378 and located in Minnetonka and Plymouth, for $46.2 million to WPT Industrial REIT. I-94 DISTRIBUTION CENTER IN ROGERS SELLS AT A PREMIUM PRICE INCREASE 75% I-94 Distribution Center The Excelsior Group sold I-94 Distribution Center in Rogers for a price that is almost $7 million more than its original purchase price in July of 2014 when over 210,000 square feet of the 297,000 square foot facility was vacant. Dalfen America Corp. paid $16.4 million, or $55 per square foot, for the property, which now has just 21,000 square feet of vacancy. Significant upgrades were made by the Excelsior Group, which included a new roof, loading docks, and lighting. This sale is particularly significant due to the competitive price paid and the fact that it is an investment sale in a market where user-ownership is more common. Investor interest in the Minneapolis- metropolitan area is strong and is extending to outer ring suburbs. Minneapolis- Research & Forecast Report Quarter 4 Industrial Colliers International 9

10 Market Statistics Submarket Airport/South of the River Total SF Direct Vacant SF % Vacant Direct Sublease Vacant SF % Vacant W/ Sublease Low-High Asking Rate Q Absorption YTD Absorption Bulk Warehouse 5,727, , % 274, % $4.81-$ , ,811 Office Showroom 3,482, , % 288, % $4.79-$9.61 5, ,231 Office Warehouse 9,484, , % 479, % $4.67-$9.22 (60,102) 248,479 Totals: 18,695,304 1,000, % 1,041, % $4.74-$ , ,521 Minneapolis Bulk Warehouse 6,076, , % 286, % $4.20-$8.70 (89,314) 357,510 Office Showroom 3,611, , % 367, % $4.78-$ ,492 1,273 Office Warehouse 17,631, , % 812, % $4.68-$ , ,644 Totals: 27,319,447 1,456, % 1,466, % $4.67-$ , ,427 Bulk Warehouse 7,506, , % 563, % $4.42-$9.86 (132,068) 132,157 Office Showroom 7,158, , % 669, % $5.13-$ , ,489 Office Warehouse 14,547, , % 714, % $4.80-$ , ,415 Totals: 29,212,414 1,929, % 1,947, % $4.89-$ , ,061 East Bulk Warehouse 8,737, , % 643, % $4.20-$ , ,213 Office Showroom 2,502, , % 131, % $4.83-$ ,491 39,650 Office Warehouse 12,966, , % 792, % $4.74-$9.79 (11,866) 72,417 Totals: 24,206,294 1,548, % 1,567, % $4.65-$ , ,280 Bulk Warehouse 12,574,560 1,611, % 1,739, % $4.59-$ , ,971 Office Showroom 5,799, , % 876, % $5.11-$9.59 (54,037) (49,692) Office Warehouse 21,023,980 1,287, % 1,317, % $4.69-$8.80 (138,735) (100,277) Totals: 39,397,601 3,658, % 3,933, % $4.78-$9.19 (2,518) 285,002 Total All Markets Bulk Warehouse 40,623,717 3,369, % 3,506, % $4.51-$ ,375 1,323,662 Office Showroom 22,553,571 2,185, % 2,333, % $4.99-$ , ,951 Office Warehouse 75,653,772 4,038, % 4,116, % $4.71-$ , ,678 Totals: 138,831,060 9,593, % 9,956, % $4.77-$ ,640 2,632,291 The above table is summarized data on multi-tenant industrial buildings greater than 20,000 square feet. Not included are single-tenant or owner-occupied buildings. 10 Minneapolis- Research & Forecast Report Quarter 4 Industrial Colliers International

11 Market Statistics (Expanded Market) Submarket Airport/South of the River Total SF Direct Vacant SF % Vacant Direct Sublease Vacant SF % Vacant W/ Sublease Low-High Asking Rate Q Absorption YTD Absorption Bulk Warehouse 17,469, , % 63, % $5.04-$ , ,131 Office Showroom 4,924, , % 24, % $4.77-$9.72 8, ,698 Office Warehouse 11,671, , % 16, % $4.64-$ , ,613 Totals: 34,065,906 1,472, % 105, % $4.79-$ ,207 1,000,442 Minneapolis Bulk Warehouse 21,073, , % 21, % $4.29-$9.59 (20,282) 502,075 Office Showroom 5,385, , % % $4.73-$9.55 (112,331) (109,745) Office Warehouse 19,946, , % 0 4.7% $4.67-$ , ,644 Totals: 46,406,229 1,840, % 21, % $4.65-$ , ,974 Bulk Warehouse 24,468, , % 0 3.0% $4.78-$ ,935 1,280,209 Office Showroom 8,547, , % 6, % $5.12-$ , ,003 Office Warehouse 18,307, , % 11, % $4.79-$ ,350 1,032,598 Totals: 51,323,100 2,317, % 17, % $4.92-$ ,961 2,415,810 East Bulk Warehouse 18,863, , % 0 3.6% $4.41-$ , ,995 Office Showroom 4,406, , % 0 3.2% $4.83-$ , ,947 Office Warehouse 21,315, , % 19, % $4.73-$ , ,417 Totals: 44,584,706 1,599, % 19, % $4.66-$ , ,359 Bulk Warehouse 38,521,959 2,936, % 320, % $4.55-$ , ,831 Office Showroom 8,327, , % 116, % $5.06-$9.74 (54,037) (50,359) Office Warehouse 25,702,539 1,349, % 30, % $4.73-$8.79 (138,735) 100,706 Totals: 72,551,849 5,107, % 467, % $4.74-$9.12 (10,537) 1,043,178 Total All Markets Bulk Warehouse 120,395,892 5,284, % 405, % $4.64-$ ,011 3,381,241 Office Showroom 31,591,783 2,525, % 147, % $4.96-$9.97 (46,131) 385,544 Office Warehouse 96,944,115 4,527, % 78, % $4.72-$ ,941 2,101,978 Totals: 248,931,790 12,337, % 631, % $4.77-$ ,821 5,868,763 The above table is summarized data on multi- and single-tenant industrial buildings greater than 10,000 square feet. Owner-occupied properties are also included. Minneapolis- Research & Forecast Report Quarter 4 Industrial Colliers International 11

12 554 offices in 66 countries on 6 continents United States: 153 Canada: 34 Latin America: 24 Asia Pacific: 231 EMEA: 112 $2.5 billion in annual revenue 2 billion square feet under management BROKERAGE SERVICES CONTACT: William M. Wardwell SIOR Executive Vice President Brokerage Minneapolis bill.wardwell@colliers.com FOR MORE INFORMATION: Maura Carland Director of Research Minneapolis maura.carland@colliers.com Colliers International Minneapolis Baker Road, Suite 400 Minnetonka, MN SUBSCRIBE TO OUR BLOG 16,000 professionals and staff Copyright 2017 Colliers International. The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.

Strong activity continues; positive absorption will continue at a slower pace for the rest of 2016

Research & Forecast Report MINNEAPOLIS-ST. PAUL INDUSTRIAL Quarter 2 2016 Strong activity continues; positive absorption will continue at a slower pace for the rest of 2016 Vacancy and absorption trends