The CoStar Industrial Report

Transcription

1 The CoStar Industrial Report Y E A R - E N D

2 OVERVIEW YEAR-END LOS ANGELES Los Angeles s Decreases to 5.0% Net Absorption Positive 2,938,136 SF in the Quarter The Los Angeles Industrial market ended the fourth quarter with a vacancy rate of 5.0%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 2,938,136 square feet in the fourth quarter. Vacant sublease space increased in the quarter, ending the quarter at 2,903,026 square feet. Rental rates ended the fourth quarter at $7.09, a decrease over the previous quarter. A total of 12 buildings delivered to the market in the quarter totaling 1,457,796 square feet, with 484,539 square feet still under construction at the end of the quarter. Absorption Net absorption for the overall Los Angeles Industrial market was positive 2,938,136 square feet in the fourth quarter. That compares to negative (2,325,566) square feet in the third quarter, positive 420,792 square feet in the second quarter, and positive 1,750,415 square feet in the first quarter. Tenants moving out of large blocks of space in include: Harbor Freight Tools moving out of (513,850) square feet at 1400 E 3rd St, Midas Express, Inc. moving out of (234,771) square feet at Via Baron, and Famsa Warehouse District moving out of (204,643) square feet at Adler Rd in the Golden Springs Business Center. Tenants moving into large blocks of space in include: Michael Kors moving into 613,375 square feet at Gateway Pointe - Bldg B Phase I, Acme Furniture moving into 500,000 square feet at E Business Pky - Phase two Bldg 11, and OnTrac moving into 403,444 square feet at 5959 Randolph St. The Flex building market recorded net absorption of negative (18,768) square feet in the fourth quarter, compared to negative (515,200) square feet in the third quarter, negative (282,289) in the second quarter, and positive 41,015 in the first quarter. The Warehouse building market recorded net absorption of positive 2,956,904 square feet in the fourth quarter compared to negative (1,810,366) square feet in the third quarter, positive 703,081 in the second quarter, and positive 1,709,400 in the first quarter. The Industrial vacancy rate in the Los Angeles market area decreased to 5.0% at the end of the fourth quarter. The vacancy rate was 5.2% at the end of the third quarter, 5.0% at the end of the second quarter, and 5.0% at the end of the first quarter. Flex projects reported a vacancy rate of 8.0% at the end of the fourth quarter, 8.3% at the end of the third quarter, 7.5% at the end of the second quarter, and 7.1% at the end of the first quarter. Warehouse projects reported a vacancy rate of 4.8% at the end of the fourth quarter, 5.0% at the end of third quarter, 4.8% at the end of the second quarter, and 4.8% at the end of the first quarter. Largest Lease Signings The largest lease signings occurring in included: the 700,000-square-foot renewal/expansion lease signed by Port Logistics Group at & E Rowland St, the 500,000- square-foot lease signed by Acme Furniture at E Business Rates by Building Type % Flex Warehouse Total Market 8% 7% 6% Rate 5% 4% 3% 2% 1% 0% COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 1

3 LOS ANGELES YEAR-END OVERVIEW Pky - Phase two Bldg 11 in the Lower SGV market; and the 403,444-square-foot lease signed by OnTrac at 5959 Randolph St in the Commerce Area market. Sublease The amount of vacant sublease space in the Los Angeles market increased to 2,903,026 square feet by the end of the fourth quarter, from 2,670,024 square feet at the end of the third quarter. There was 2,365,033 square feet vacant at the end of the second quarter and 2,071,232 square feet at the end of the first quarter. Los Angeles s Flex projects reported vacant sublease space of 188,566 square feet at the end of fourth quarter, down from the 217,391 square feet reported at the end of the third quarter. There were 118,474 square feet of sublease space vacant at the end of the second quarter, and 61,333 square feet at the end of the first quarter. Warehouse projects reported increased vacant sublease space from the third quarter to the fourth quarter. Sublease vacancy went from 2,452,633 square feet to 2,714,460 square feet during that time. There were 2,246,559 square feet at the end of the second quarter, and 2,009,899 square feet at the end of the first quarter. Rental Rates The average quoted asking rental rate for available Industrial space was $7.09 per square foot per year at the end of the fourth quarter in the Los Angeles market area. This represented a 0.1% decrease in quoted rental rates from the end of the third quarter, when rents were reported at $7.10 per square foot. The average quoted rate within the Flex sector was $14.64 per square foot at the end of the fourth quarter, while Warehouse rates stood at $6.69. At the end of the third quarter, Flex rates were $14.67 per square foot, and Warehouse rates were $6.69. U.S. Comparison Past 10 Quarters Rate 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2q 4q Los Angeles 2q 4q United States 2q Deliveries and Construction During the fourth quarter, 12 buildings totaling 1,457,796 square feet were completed in the Los Angeles market area. This compares to 13 buildings totaling 790,559 square feet that were completed in the third quarter, five buildings totaling 287,807 square feet completed in the second quarter, and 543,104 square feet in four buildings completed in the first quarter. There were 484,539 square feet of Industrial space under construction at the end of the fourth quarter. Some of the notable deliveries include: 9306 Sorensen Ave, a 305,422-square-foot facility that delivered in fourth quarter and is now 0% occupied, and 179 S Grand Ave - Bldg 11, a 300,000-square-foot building that delivered in first quarter and is now 100% occupied. The largest projects underway at the end of fourth quarter were Xebec Commerce Center at 588 Crenshaw Blvd, a 264,900-square-foot building with 0% of its space pre-leased, and 1800 Stewart St, a 160,000-square-foot facility that is 100% pre-leased. Inventory Total Industrial inventory in the Los Angeles market area amounted to 992,934,780 square feet in 36,836 buildings as of the end of the fourth quarter. The Flex sector consisted of 62,516,746 square feet in 2,875 projects. The Warehouse sector consisted of 930,418,034 square feet in 33,961 buildings. Within the Industrial market there were 4,599 owner-occupied buildings accounting for 190,813,953 square feet of Industrial space. Sales Activity Tallying industrial building sales of 15,000 square feet or larger, Los Angeles industrial sales figures rose during the third quarter in terms of dollar volume compared to the second quarter of. In the third quarter, 106 industrial transactions closed with a total volume of $604,547,380. The 106 buildings totaled 6,685,410 square feet and the average price per square foot equated to $90.43 per square foot. That compares to 87 transactions totaling $505,159,862 in the second quarter. The total square footage was 6,191,606 for an average price per square foot of $ Total year-to-date industrial building sales activity in is up compared to the previous year. In the first nine months of, the market saw 295 industrial sales transactions with a total volume of $1,498,230,122. The price per square foot has averaged $83.77 this year. In the first nine months of, the market posted 258 transactions with a total volume of $1,331,002,983. The price per square foot averaged $ Cap rates have been higher in, averaging 7.82%, compared to the first nine months of last year when they averaged 7.29%. Source: CoStar Property 2 THE COSTAR INDUSTRIAL REPORT 2013 COSTAR GROUP, INC.

4 OVERVIEW YEAR-END LOS ANGELES One of the largest transactions that has occurred within the last four quarters in the Los Angeles market is the sale of Trojan Way in LA Mirada. This 497,620-square-foot industrial building sold for $62,200,000, or $ per square foot. The property sold on 6/14/. Absorption & Deliveries Past 10 Quarters Net Absorption Deliveries Reports compiled by: Paula Bonner and David Blake, CoStar Senior Research Managers (1.0) (1.0) (2.0) (3.0) 4q 2q 4q 2q (2.3) 4q Source: CoStar Property 2013 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 3

5 LOS ANGELES YEAR-END MARKETS CoStar Submarket Clusters & Submarkets In analyzing metropolitan areas, CoStar has developed geographic designations to help group properties together, called Markets, Submarket Clusters and Submarkets. Markets are the equivalent of metropolitan areas, or areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Markets are then divided into Submarket Clusters, which are core areas within a metropolitan area that are known to be competitive with each other in terms of attracting and keeping tenants. Markets are then further subdivided into smaller units called Submarkets, which serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted competitive set, or peer group. Submarket Clusters Antelope Valley Ind Submarkets Antelope Valley Ind Carson/Rancho Domingz Ind Carson Central Ind Carson North Ind Carson South Ind Compton East Ind Compton West Ind Rancho Dominguez Ind Central LA Ind Central Los Angeles Ind Commerce Area Ind Commerce Ind Montebello/Whittier Ind Conejo Valley Ind Agoura/Wlake V/T Oaks Ind Moorpark/Simi Val Ind Eastern SGV Ind Claremont Ind Diamond Bar Ind La Verne Ind Pomona North Ind Pomona SE Ind Pomona SW Ind San Dimas Ind El Segundo/Hawthorne Ind El Segundo Ind Hawthorne Ind Inglewood Ind Lawndale Ind Gardena/110 Corridor Ind Gardena Central Ind Gardena East Ind Gardena NE Ind Gardena North Central Ind Gardena North Ind Gardena NW Ind Gardena South Ind Long Beach Area Ind Lakewood Ind Long Beach North Ind Long Beach SE Ind Long Beach SW Ind San Pedro Ind Signal Hill Ind Wilmington Ind Lower SGV Ind City of Industry Cent Ind City of Industry East Ind City of Industry West Ind Industry/Hacienda Blv Ind Industry/La Puente Ind Industry/Rowland St Ind West Covina/Walnut Ind Lynwood/Paramount Ind Lynwood Ind Paramount North Ind Paramount South Ind Mid Counties-LA Ind Cerritos Ind Downey Ind La Mirada Ind Norwalk/Bellflower Ind Santa Fe Springs Ind Northwest SGV Ind Alhambra Ind Arcadia/Sierra Madre Ind El Monte Ind Monrovia Ind Rosemead Ind San Gabriel Ind Temple City Ind SCV/Lancaster/Palmdale Ind Santa Clarita/Lancstr Ind SFV East Ind Burbank Ind East San Ferndo Vlly Ind Glendale Ind North Hollywood Ind Pasadena Ind SFV West Ind Canoga Park Ind Chatsworth Ind Encino Ind Northridge Ind Tarzana Ind W San Fern Val Ind Woodland Hills Ind Southwest SGV Ind South El Monte NE Ind South El Monte NW Ind South El Monte SE Ind Torrance/Beach Cities Ind Beach Cities Ind Torrance Central Ind Torrance NE Ind Torrance NW Ind Torrance South Ind Upper SGV Ind Azusa Ind Baldwin Park Ind Covina Ind Duarte Ind Glendora Ind Irwindale Ind Ventura County Ind Central Ventura Ind Oxnard/Pt Hueneme Ind Ventura Ind Vernon Area Ind Vernon Ind Westside Ind Topanga/Malibu Ind Westside Ind 4 THE COSTAR INDUSTRIAL REPORT 2013 COSTAR GROUP, INC.

6 INVENTORY & DEVELOPMENT YEAR-END LOS ANGELES Historical Deliveries Deliveries Average Delivered SF Millions of SF * Future deliveries based on current under construction buildings. Construction Activity Markets Ranked by Under Construction RBA Under Construction Inventory Average Bldg Size Market # Bldgs Total RBA Preleased SF Preleased % All Existing U/C Torrance/Beach Cities Ind 1 264, % 35, ,900 Long Beach Area Ind 3 108,883 22, % 17,651 36,294 Central LA Ind 1 99,800 99, % 19,687 99,800 Southwest SGV Ind 1 8, % 11,460 8,000 Westside Ind 1 2,956 2, % 18,615 2,956 Ventura County Ind % 23,008 0 Eastern SGV Ind % 24,625 0 El Segundo/Hawthorne Ind % 26,894 0 Gardena/110 Corridor Ind % 21,612 0 Carson/Rancho Domingz Ind % 60,673 0 All Other % 29,136 0 Totals 7 484, , % 26,956 69,220 Recent Deliveries Leased & Un-Leased SF in Deliveries Since 2008 Future Deliveries Preleased & Un-Leased SF in Properties Scheduled to Deliver 4.5 Leased Un-Leased 600 Preleased Un-Leased Millions of SF Thousands of SF T q 2013 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 5

7 LOS ANGELES YEAR-END INVENTORY & DEVELOPMENT Historical Construction Starts & Deliveries Square Footage Per Quarter Starting and Completing Construction Construction Starts Deliveries Millions of SF q q 2q 4q 2q 4q 2q 4q Recent Deliveries by Project Size Breakdown of Year-to-Date Development Based on RBA of Project Building Size # Bldgs RBA SF Leased % Leased Avg Rate Single-Tenant Multi-Tenant < 50,000 SF , , % $ , ,219 50,000 SF - 99,999 SF 5 359, , % $ , , ,000 SF - 249,999 SF 9 1,553,627 1,035, % $ , , ,000 SF - 499,999 SF 3 877, , % $ ,667 0 >= 500,000 SF % $ Recent Development by Tenancy Comparison Based on RBA Developed for Single & Multi-Tenant Use Based on Total RBA Deliveries Currently Under Construction By Building Type By Tenancy Type 6% 69% 31% 45% 55% 53% 47% 94% Multi Single Multi Single Flex Warehouse Multi Single 6 THE COSTAR INDUSTRIAL REPORT 2013 COSTAR GROUP, INC.

8 FIGURES AT A GLANCE YEAR-END LOS ANGELES Flex Market Statistics Year-End YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Antelope Valley Ind 65 1,069,251 72,161 72, % 42, $11.34 Carson/Rancho Domingz Ind 42 1,303, , , % (10,729) 0 0 $10.86 Central LA Ind 338 5,488, , , % (255,841) 0 0 $20.35 Commerce Area Ind 59 1,060, , , % (27,874) 0 0 $14.49 Conejo Valley Ind 161 5,143, , , % (85,537) 0 0 $12.88 Eastern SGV Ind 45 1,118, , , % (79,835) 0 0 $7.31 El Segundo/Hawthorne Ind 67 2,852,033 55,373 55, % (184,385) 0 0 $22.56 Gardena/110 Corridor Ind ,741 84,938 84, % (35,598) 0 0 $9.21 Long Beach Area Ind 101 1,646, , , % (86,705) 0 0 $11.12 Lower SGV Ind 49 1,269,408 92,670 96, % 26, $12.73 Lynwood/Paramount Ind ,044 11,200 11, % 3, $8.16 Mid Counties-LA Ind 193 4,381, , , % 108, $9.91 Northwest SGV Ind 113 2,299,059 88, , % (49,678) 0 0 $11.91 SCV/Lancaster/Palmdale Ind 123 3,346, , , % (5,970) 0 0 $11.71 SFV East Ind 371 6,009, , , % 107, $15.07 SFV West Ind 371 8,851, , , % (312,048) 0 0 $8.86 Southwest SGV Ind ,580 6,059 6, % 2, $10.54 Torrance/Beach Cities Ind 185 4,708, , , % 148, $13.17 Upper SGV Ind 110 2,173, , , % (83,762) 0 0 $9.43 Ventura County Ind 82 2,562, , , % (11,568) 0 0 $11.28 Vernon Area Ind ,495 40,366 42, % (13,415) 0 0 $66.00 Westside Ind 300 5,599, , , % 28, $31.45 Totals 2,875 62,516,746 4,795,814 4,984, % (775,242) 0 0 $14.64 Warehouse Market Statistics Year-End YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Antelope Valley Ind 326 8,485, , , % (59,142) 0 0 $6.53 Carson/Rancho Domingz Ind 1,219 75,204,541 3,276,410 3,568, % 1,097, ,967 0 $6.21 Central LA Ind 4,610 91,924,337 2,957,317 3,033, % (48,629) 46,422 99,800 $7.98 Commerce Area Ind 1,592 73,505,340 2,898,032 3,122, % 167, $5.71 Conejo Valley Ind ,483,502 1,421,069 1,422, % 380,587 41,962 0 $7.37 Eastern SGV Ind ,949,948 1,260,637 1,291, % 504, $5.38 El Segundo/Hawthorne Ind ,477, , , % 18, ,642 0 $8.51 Gardena/110 Corridor Ind 1,650 35,623,647 1,646,475 1,698, % (306,799) 239,354 0 $6.32 Long Beach Area Ind 1,536 27,247,582 2,516,651 2,523, % 286, , ,883 $6.82 Lower SGV Ind 1,476 79,991,056 4,331,434 5,026, % 1,236, ,000 0 $5.96 Lynwood/Paramount Ind ,832, , , % 158,344 3,000 0 $6.32 Mid Counties-LA Ind 2,489 90,484,862 4,164,223 4,586, % 383, ,422 0 $6.04 Northwest SGV Ind 1,195 20,365,712 1,093,315 1,110, % 26,060 74,051 0 $6.09 SCV/Lancaster/Palmdale Ind ,601, , , % 209, $6.99 SFV East Ind 4,649 80,231,769 2,481,091 2,718, % 511, ,000 0 $8.30 SFV West Ind 1,612 37,601,344 1,922,975 2,110, % (72,595) 0 0 $7.71 Southwest SGV Ind ,460, , , % 191,070 6,051 8,000 $7.15 Torrance/Beach Cities Ind ,192,399 2,653,548 2,655, % (503,715) 358, ,900 $7.49 Upper SGV Ind 1,137 24,020, , , % 372, $6.61 Ventura County Ind 2,085 47,295,132 3,034,104 3,160, % (401,349) 235,548 0 $6.98 Vernon Area Ind 2,178 81,561,980 2,380,040 2,662, % (818,472) 0 0 $5.95 Westside Ind ,876, , , % 226, ,000 2,956 $14.16 Totals 33, ,418,034 42,326,669 45,041, % 3,559,019 3,079, ,539 $ COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 9

9 LOS ANGELES YEAR-END FIGURES AT A GLANCE Total Industrial Market Statistics Year-End YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Antelope Valley Ind 391 9,554, , , % (16,376) 0 0 $6.70 Carson/Rancho Domingz Ind 1,261 76,508,349 3,395,158 3,696, % 1,086, ,967 0 $6.26 Central LA Ind 4,948 97,413,245 3,449,368 3,539, % (304,470) 46,422 99,800 $9.25 Commerce Area Ind 1,651 74,565,921 3,006,578 3,230, % 139, $5.80 Conejo Valley Ind ,627,376 1,971,585 2,053, % 295,050 41,962 0 $8.37 Eastern SGV Ind 1,018 25,068,367 1,422,432 1,459, % 424, $5.44 El Segundo/Hawthorne Ind ,329,497 1,015,265 1,022, % (165,873) 207,642 0 $9.74 Gardena/110 Corridor Ind 1,688 36,480,388 1,731,413 1,783, % (342,397) 239,354 0 $6.36 Long Beach Area Ind 1,637 28,894,118 2,697,552 2,704, % 200, , ,883 $6.97 Lower SGV Ind 1,525 81,260,464 4,424,104 5,122, % 1,262, ,000 0 $6.00 Lynwood/Paramount Ind ,968, , , % 161,344 3,000 0 $6.33 Mid Counties-LA Ind 2,682 94,865,868 4,426,459 4,848, % 491, ,422 0 $6.16 Northwest SGV Ind 1,308 22,664,771 1,181,802 1,213, % (23,618) 74,051 0 $6.59 SCV/Lancaster/Palmdale Ind ,948,719 1,275,188 1,290, % 203, $7.39 SFV East Ind 5,020 86,240,841 2,746,672 2,993, % 619, ,000 0 $8.82 SFV West Ind 1,983 46,453,070 2,879,678 3,105, % (384,643) 0 0 $7.91 Southwest SGV Ind ,714, , , % 193,820 6,051 8,000 $7.23 Torrance/Beach Cities Ind 1,049 36,900,440 2,887,899 2,890, % (355,197) 358, ,900 $7.84 Upper SGV Ind 1,247 26,194, , , % 288, $6.70 Ventura County Ind 2,167 49,857,876 3,318,212 3,447, % (412,917) 235,548 0 $7.21 Vernon Area Ind 2,207 81,946,475 2,420,406 2,705, % (831,887) 0 0 $5.96 Westside Ind 1,100 20,476, , , % 254, ,000 2,956 $18.54 Totals 36, ,934,780 47,122,483 50,025, % 2,783,777 3,079, ,539 $ THE COSTAR INDUSTRIAL REPORT 2013 COSTAR GROUP, INC.

10 FIGURES AT A GLANCE YEAR-END LOS ANGELES Flex Submarket Statistics Year-End YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Agoura/Wlake V 138 4,513, , , % (146,018) 0 0 $12.88 Alhambra Ind ,183 14,128 14, % (1,507) 0 0 $9.02 Antelope Valley 65 1,069,251 72,161 72, % 42, $11.34 Arcadia/Sierra M ,535 5,840 5, % 4, $13.64 Azusa Ind 33 1,060,991 5,088 5, % (5,088) 0 0 $10.23 Baldwin Park Ind ,433 67,284 67, % (43,815) 0 0 $9.43 Beach Cities Ind ,401 51,801 51, % 1, $14.69 Burbank Ind 122 1,787,250 38,151 40, % 60, $16.12 Canoga Park Ind ,390 26,647 55, % (23,950) 0 0 $6.09 Carson Central In 6 155,653 7,925 7, % 6, $8.66 Carson North Ind 2 60, % $9.00 Carson South Ind ,362 38,605 38, % 20, $8.57 Central Los Ange 338 5,488, , , % (255,841) 0 0 $20.35 Central Ventura , , , % 47, $9.56 Cerritos Ind ,891 57,387 57, % 65, $10.01 Chatsworth Ind 164 4,469, , , % (194,012) 0 0 $9.09 City of Industry C 6 100,492 10,300 10, % (9,000) 0 0 $17.27 City of Industry E 9 131,757 22,890 22, % (19,810) 0 0 $10.33 City of Industry W 2 184,197 30,144 30, % 14, $4.56 Claremont Ind 4 55,733 3,552 3, % (1,632) 0 0 $0.00 Commerce Ind ,072 95,114 95, % (31,102) 0 0 $14.35 Compton East In 1 4, % $0.00 Compton West I 6 138,126 30,635 30, % (17,125) 0 0 $13.41 Covina Ind ,216 72,964 72, % (13,400) 0 0 $8.31 Diamond Bar Ind % $0.00 Downey Ind , % 3, $17.88 Duarte Ind 3 32,610 3,140 3, % (925) 0 0 $17.40 East San Ferndo 87 1,741,073 47,988 47, % 106, $10.84 El Monte Ind ,372 25,014 25, % (2,090) 0 0 $11.01 El Segundo Ind 32 1,952,638 26,581 26, % (175,489) 0 0 $25.42 Encino Ind % $0.00 Gardena Central 9 186,529 8,269 8, % 24, $10.36 Gardena East Ind 1 8, % $0.00 Gardena NE Ind % $0.00 Gardena North C 6 108, % $0.00 Gardena North I 7 183,628 22,964 22, % (22,964) 0 0 $0.00 Gardena NW Ind 1 25, % $0.00 Gardena South I ,550 53,705 53, % (36,755) 0 0 $8.99 Glendale Ind ,587 5,223 5, % 15, $11.87 Glendora Ind , % $23.40 Hawthorne Ind ,428 1,300 1, % (1,300) 0 0 $10.67 Industry/Haciend , % (380) 0 0 $14.16 Industry/La Puen 2 46, % 4, $0.00 Industry/Rowlan 6 196,091 3,490 3, % (762) 0 0 $0.00 Inglewood Ind ,627 27,492 27, % (10,246) 0 0 $13.46 Irwindale Ind 4 171,993 23,857 23, % (20,534) 0 0 $ COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 11

11 LOS ANGELES YEAR-END FIGURES AT A GLANCE Flex Submarket Statistics Year-End YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates La Mirada Ind ,904 33,773 33, % (9,882) 0 0 $9.62 La Verne Ind 5 94,880 16,046 16, % 4, $8.53 Lakewood Ind 1 3, % $0.00 Lawndale Ind 5 38, % 2, $12.42 Long Beach Nort ,114 86,492 86, % (37,745) 0 0 $12.19 Long Beach SE In ,262 23,984 23, % (15,096) 0 0 $10.46 Long Beach SW 8 79,118 5,863 5, % (2,463) 0 0 $9.56 Lynwood Ind 1 3, % $0.00 Monrovia Ind ,564 42,005 56, % (50,605) 0 0 $19.02 Montebello/Whi ,509 13,432 13, % 3, $14.95 Moorpark/Simi V ,916 75,691 75, % 60, $12.90 North Hollywood , % $0.00 Northridge Ind 137 3,113, , , % (102,677) 0 0 $7.69 Norwalk/Bellflow 9 126,579 10,143 10, % (1,974) 0 0 $12.00 Oxnard/Pt Huen ,397 89,750 89, % (37,654) 0 0 $15.89 Paramount North 4 51, % $0.00 Paramount South 5 80,828 11,200 11, % 3, $8.16 Pasadena Ind 91 1,430, , , % (75,351) 0 0 $17.74 Pomona North In 3 167,076 66,776 66, % (66,776) 0 0 $3.36 Pomona SE Ind 8 150,134 2,302 2, % $5.40 Pomona SW Ind 3 114, , % $15.00 Rancho Domingu 9 498,320 41,583 50, % (20,824) 0 0 $14.79 Rosemead Ind 1 180, % $0.00 San Dimas Ind ,766 73,119 73, % (15,527) 0 0 $13.08 San Gabriel Ind 5 39, % $0.00 San Pedro Ind 5 31, % $0.00 Santa Clarita/Lan 123 3,346, , , % (5,970) 0 0 $11.71 Santa Fe Springs 133 2,744, , , % 50, $9.84 Signal Hill Ind ,766 56,962 56, % (25,344) 0 0 $11.02 South El Monte N ,155 2,325 2, % $0.00 South El Monte N 4 23, % $8.64 South El Monte S 9 130,710 3,734 3, % 2, $10.65 Tarzana Ind 2 35,246 12,700 12, % (1,450) 0 0 $9.00 Temple City Ind 3 24,016 1,500 1, % $0.00 Topanga/Malibu % $0.00 Torrance Central ,964 8,710 8, % 1, $10.90 Torrance NE Ind 43 1,529,938 28,045 28, % 101, $10.57 Torrance NW Ind 78 1,837,993 94,357 94, % 51, $13.65 Torrance South I ,745 51,438 51, % (7,478) 0 0 $14.23 Ventura Ind ,053 61,967 64, % (21,337) 0 0 $11.86 Vernon Ind ,495 40,366 42, % (13,415) 0 0 $66.00 W San Fern Val % $0.00 West Covina/Wa ,150 25,466 29, % 37, $16.19 Westside Ind 300 5,599, , , % 28, $31.45 Wilmington Ind 7 61,569 7,600 7, % (6,900) 0 0 $12.00 Woodland Hills I ,880 32,300 32, % 10, $15.30 Totals 2,875 62,516,746 4,795,814 4,984, % (775,242) 0 0 $ THE COSTAR INDUSTRIAL REPORT 2013 COSTAR GROUP, INC.

12 FIGURES AT A GLANCE YEAR-END LOS ANGELES Warehouse Submarket Statistics Year-End YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Agoura/Wlake V 277 7,873, , , % 99, $8.68 Alhambra Ind 254 3,812, , , % 64, $6.74 Antelope Valley 326 8,485, , , % (59,142) 0 0 $6.53 Arcadia/Sierra M 122 1,334,277 77,398 77, % (11,016) 0 0 $8.68 Azusa Ind 310 7,448, , , % 55, $5.85 Baldwin Park Ind 281 3,904, , , % $7.45 Beach Cities Ind 63 2,238,745 93,530 93, % 86, $9.22 Burbank Ind 1,038 15,659, , , % 103, $10.98 Canoga Park Ind 318 5,294, , , % $7.84 Carson Central In ,058, , , % 1,043, ,560 0 $6.57 Carson North Ind 130 5,520, , , % (122,601) 0 0 $6.38 Carson South Ind ,290, , , % 460, ,407 0 $6.58 Central Los Ange 4,610 91,924,337 2,957,317 3,033, % (48,629) 46,422 99,800 $7.98 Central Ventura ,018, , , % 142,545 10,500 0 $7.00 Cerritos Ind ,456, , , % 252, $5.82 Chatsworth Ind ,724,170 1,188,509 1,350, % 145, $7.34 City of Industry C ,073, ,995 1,103, % 113, $6.08 City of Industry E ,585,629 1,534,909 1,549, % 99, ,000 0 $5.70 City of Industry W 66 4,822, , , % 501, $6.61 Claremont Ind ,766 12,744 12, % 29, $5.38 Commerce Ind ,257,435 1,888,067 2,047, % 113, $5.68 Compton East In 130 2,785,022 19,973 19, % 46, $7.10 Compton West I ,357,698 1,293,351 1,293, % (132,507) 0 0 $5.92 Covina Ind 201 2,410, , , % $7.79 Diamond Bar Ind 2 32, % $0.00 Downey Ind 284 7,291, , , % (55,384) 0 0 $6.50 Duarte Ind 60 1,061,962 77,735 97, % (45,820) 0 0 $7.45 East San Ferndo 2,373 45,759,664 1,594,771 1,820, % 187, ,000 0 $7.47 El Monte Ind 378 8,891, , , % (4,549) 74,051 0 $5.09 El Segundo Ind ,816, , , % ,117 0 $12.61 Encino Ind 1 2, % $0.00 Gardena Central 469 9,240, , , % (127,890) 239,354 0 $6.66 Gardena East Ind 183 6,177, , , % 170, $6.46 Gardena NE Ind 255 6,728, , , % 33, $6.22 Gardena North C 160 3,838, , , % (151,108) 0 0 $5.98 Gardena North I 349 4,741, , , % (106,283) 0 0 $6.60 Gardena NW Ind , % $5.16 Gardena South I 222 4,758, , , % (125,098) 0 0 $5.87 Glendale Ind 625 9,316, , , % 219, $9.46 Glendora Ind , , , % (464) 0 0 $6.91 Hawthorne Ind 284 7,523, , , % 2, $7.08 Industry/Haciend ,357, , , % (497,487) 0 0 $5.96 Industry/La Puen 148 9,415, , , % 437, $5.40 Industry/Rowlan ,851, , , % 579, $6.23 Inglewood Ind 299 4,702, , , % 15,842 3,525 0 $10.20 Irwindale Ind 235 8,405, , , % 361, $ COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 13

13 LOS ANGELES YEAR-END FIGURES AT A GLANCE Warehouse Submarket Statistics Year-End YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates La Mirada Ind ,491, ,555 1,071, % 13, $5.68 La Verne Ind 144 2,947, , , % (78,834) 0 0 $6.31 Lakewood Ind ,107 18,790 18, % (17,790) 0 0 $4.77 Lawndale Ind ,086 5,855 5, % (55) 0 0 $12.94 Long Beach Nort 266 6,156, , , % (23,292) 0 0 $7.21 Long Beach SE In 300 6,532,762 1,573,207 1,580, % 191, , ,883 $6.51 Long Beach SW 454 4,989, , , % 130, ,705 4,000 $6.02 Lynwood Ind 177 5,511, , , % 338,538 3,000 0 $5.32 Monrovia Ind 262 3,542,085 66,111 72, % (48) 0 0 $8.86 Montebello/Whi ,247,905 1,009,965 1,075, % 54, $5.79 Moorpark/Simi V ,609,691 1,106,726 1,108, % 281,484 41,962 0 $6.89 North Hollywood 450 7,085, , , % 98, $7.74 Northridge Ind ,877, , , % (81,436) 0 0 $8.23 Norwalk/Bellflow 198 7,179, , , % (76,685) 0 0 $7.15 Oxnard/Pt Huen ,893,012 1,821,966 1,850, % (499,035) 163,500 0 $6.63 Paramount North 94 2,501, , , % (76,458) 0 0 $6.96 Paramount South 252 4,819, , , % (103,736) 0 0 $7.67 Pasadena Ind 163 2,410, , , % (96,862) 0 0 $11.62 Pomona North In 145 2,757,683 17,153 17, % 9, $5.44 Pomona SE Ind ,162, , , % 366, $4.50 Pomona SW Ind 164 4,647,910 86,637 86, % 141, $6.81 Rancho Domingu ,192,387 1,136,316 1,303, % (197,604) 0 0 $5.96 Rosemead Ind 70 1,326,223 2,196 2, % 4, $3.34 San Dimas Ind 139 2,843, , , % 36, $7.95 San Gabriel Ind 85 1,153,068 38,802 38, % (24,758) 0 0 $6.93 San Pedro Ind 35 1,454,919 7,022 7, % 4, $7.17 Santa Clarita/Lan ,601, , , % 209, $6.99 Santa Fe Springs 1,469 49,065,867 2,248,430 2,308, % 249, ,422 0 $6.14 Signal Hill Ind 287 4,604,249 97,816 97, % 204, ,379 0 $8.93 South El Monte N 530 6,040, , , % 155,569 6,051 0 $7.20 South El Monte N 236 2,346,339 25,475 25, % 6, $7.53 South El Monte S 146 2,073,784 55,294 55, % 28, ,000 $6.83 Tarzana Ind ,225 24,599 24, % (7,828) 0 0 $11.96 Temple City Ind ,122 7,600 7, % (2,500) 0 0 $7.40 Topanga/Malibu 1 2, % $0.00 Torrance Central 160 2,813, , , % 107, $6.73 Torrance NE Ind ,776,114 1,241,289 1,241, % (85,318) 358,958 0 $7.47 Torrance NW Ind 133 6,561, , , % (169,439) 0 264,900 $7.18 Torrance South I 265 6,803, , , % (442,841) 0 0 $7.96 Ventura Ind ,383, , , % (44,859) 61,548 0 $8.06 Vernon Ind 2,178 81,561,980 2,380,040 2,662, % (818,472) 0 0 $5.95 W San Fern Val 1 42, % $0.00 West Covina/Wa 131 2,885,362 66,429 67, % $9.55 Westside Ind ,874, , , % 226, ,000 2,956 $14.16 Wilmington Ind 177 3,224, , , % (202,253) 0 0 $6.75 Woodland Hills I 21 1,166,837 6,000 6, % (128,865) 0 0 $7.65 Totals 33, ,418,034 42,326,669 45,041, % 3,559,019 3,079, ,539 $ THE COSTAR INDUSTRIAL REPORT 2013 COSTAR GROUP, INC.

14 FIGURES AT A GLANCE YEAR-END LOS ANGELES Total Industrial Submarket Statistics Year-End YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Agoura/Wlake V ,387, , , % (46,915) 0 0 $10.43 Alhambra Ind 287 4,485, , , % 63, $7.18 Antelope Valley 391 9,554, , , % (16,376) 0 0 $6.70 Arcadia/Sierra M 141 1,555,812 83,238 83, % (6,492) 0 0 $9.03 Azusa Ind 343 8,509, , , % 49, $5.93 Baldwin Park Ind 305 4,249, , , % (43,007) 0 0 $7.58 Beach Cities Ind 85 2,894, , , % 87, $10.43 Burbank Ind 1,160 17,446, , , % 164, $11.55 Canoga Park Ind 374 5,982, , , % (23,674) 0 0 $7.72 Carson Central In ,214, , , % 1,049, ,560 0 $6.58 Carson North Ind 132 5,580, , , % (122,601) 0 0 $6.48 Carson South Ind ,736, , , % 481, ,407 0 $6.64 Central Los Ange 4,948 97,413,245 3,449,368 3,539, % (304,470) 46,422 99,800 $9.25 Central Ventura ,860, , , % 189,968 10,500 0 $7.27 Cerritos Ind ,249, , , % 318, $5.99 Chatsworth Ind ,193,216 1,584,760 1,747, % (48,754) 0 0 $7.57 City of Industry C ,173, ,295 1,114, % 104, $6.15 City of Industry E ,717,386 1,557,799 1,571, % 79, ,000 0 $5.73 City of Industry W 68 5,006, , , % 516, $6.60 Claremont Ind ,499 16,296 16, % 28, $5.38 Commerce Ind ,005,507 1,983,181 2,142, % 81, $5.78 Compton East In 131 2,789,822 19,973 19, % 46, $7.10 Compton West I ,495,824 1,323,986 1,323, % (149,632) 0 0 $5.93 Covina Ind 233 2,791, , , % (12,697) 0 0 $7.89 Diamond Bar Ind 2 32, % $0.00 Downey Ind 294 7,556, , , % (51,409) 0 0 $6.59 Duarte Ind 63 1,094,572 80, , % (46,745) 0 0 $7.59 East San Ferndo 2,460 47,500,737 1,642,759 1,868, % 293, ,000 0 $7.59 El Monte Ind 401 9,647, , , % (6,639) 74,051 0 $5.33 El Segundo Ind ,769, , , % (175,430) 204,117 0 $17.40 Encino Ind 1 2, % $0.00 Gardena Central 478 9,426, , , % (103,769) 239,354 0 $6.71 Gardena East Ind 184 6,186, , , % 170, $6.46 Gardena NE Ind 255 6,728, , , % 33, $6.22 Gardena North C 166 3,946, , , % (151,108) 0 0 $5.98 Gardena North I 356 4,925, , , % (129,247) 0 0 $6.60 Gardena NW Ind , % $5.16 Gardena South I 236 5,101, , , % (161,853) 0 0 $6.12 Glendale Ind ,102, , , % 235, $9.58 Glendora Ind , , , % (464) 0 0 $7.07 Hawthorne Ind 296 8,020, , , % 1, $7.09 Industry/Haciend ,752, , , % (497,867) 0 0 $5.96 Industry/La Puen 150 9,462, , , % 441, $5.40 Industry/Rowlan ,047, , , % 579, $6.23 Inglewood Ind 317 5,065, , , % 5,596 3,525 0 $10.45 Irwindale Ind 239 8,577, , , % 341, $ COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 15

15 LOS ANGELES YEAR-END FIGURES AT A GLANCE Total Industrial Submarket Statistics Year-End YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates La Mirada Ind ,943, ,328 1,105, % 3, $5.85 La Verne Ind 149 3,042, , , % (74,734) 0 0 $6.48 Lakewood Ind ,707 18,790 18, % (17,790) 0 0 $4.77 Lawndale Ind ,426 5,855 5, % 2, $12.84 Long Beach Nort 291 6,750, , , % (61,037) 0 0 $7.42 Long Beach SE In 318 6,862,024 1,597,191 1,604, % 176, , ,883 $6.57 Long Beach SW 462 5,068, , , % 127, ,705 4,000 $6.13 Lynwood Ind 178 5,515, , , % 338,538 3,000 0 $5.32 Monrovia Ind 291 3,948, , , % (50,653) 0 0 $10.35 Montebello/Whi ,560,414 1,023,397 1,088, % 57, $5.85 Moorpark/Simi V ,239,607 1,182,417 1,184, % 341,965 41,962 0 $7.11 North Hollywood 466 7,350, , , % 98, $7.74 Northridge Ind ,990, ,174 1,019, % (184,113) 0 0 $8.08 Norwalk/Bellflow 207 7,305, , , % (78,659) 0 0 $7.17 Oxnard/Pt Huen ,789,409 1,911,716 1,940, % (536,689) 163,500 0 $6.79 Paramount North 98 2,553, , , % (76,458) 0 0 $6.96 Paramount South 257 4,899, , , % (100,736) 0 0 $7.68 Pasadena Ind 254 3,840, , , % (172,213) 0 0 $14.60 Pomona North In 148 2,924,759 83,929 83, % (57,413) 0 0 $5.25 Pomona SE Ind ,312, , , % 366, $4.50 Pomona SW Ind 167 4,762,740 86,637 93, % 141, $6.94 Rancho Domingu ,690,707 1,177,899 1,354, % (218,428) 0 0 $6.07 Rosemead Ind 71 1,506,223 2,196 2, % 4, $3.34 San Dimas Ind 161 3,379, , , % 21, $8.41 San Gabriel Ind 90 1,192,457 38,802 38, % (24,758) 0 0 $6.93 San Pedro Ind 40 1,486,026 7,022 7, % 5, $7.17 Santa Clarita/Lan ,948,719 1,275,188 1,290, % 203, $7.39 Santa Fe Springs 1,602 51,810,509 2,409,363 2,469, % 300, ,422 0 $6.23 Signal Hill Ind 324 5,152, , , % 178, ,379 0 $9.30 South El Monte N 540 6,140, , , % 155,569 6,051 0 $7.20 South El Monte N 240 2,370,054 25,475 25, % 6, $7.54 South El Monte S 155 2,204,494 59,028 59, % 31, ,000 $7.11 Tarzana Ind ,471 37,299 37, % (9,278) 0 0 $11.57 Temple City Ind ,138 9,100 9, % (2,500) 0 0 $7.40 Topanga/Malibu 1 2, % $0.00 Torrance Central 177 3,027, , , % 108, $6.88 Torrance NE Ind ,306,052 1,269,334 1,269, % 16, ,958 0 $7.55 Torrance NW Ind 211 8,399, , , % (117,569) 0 264,900 $7.92 Torrance South I 290 7,274, , , % (450,319) 0 0 $8.54 Ventura Ind ,208, , , % (66,196) 61,548 0 $8.37 Vernon Ind 2,207 81,946,475 2,420,406 2,705, % (831,887) 0 0 $5.96 W San Fern Val 1 42, % $0.00 West Covina/Wa 143 3,100,512 91,895 96, % 38, $10.28 Westside Ind 1,099 20,473, , , % 254, ,000 2,956 $18.54 Wilmington Ind 184 3,286, , , % (209,153) 0 0 $6.78 Woodland Hills I 33 1,712,717 38,300 38, % (118,824) 0 0 $9.90 Totals 36, ,934,780 47,122,483 50,025, % 2,783,777 3,079, ,539 $ THE COSTAR INDUSTRIAL REPORT 2013 COSTAR GROUP, INC.

16 FIGURES AT A GLANCE YEAR-END LOS ANGELES Flex Market Statistics Year-End Net Deliveries UC Inventory Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates 4q 2,875 62,516,746 4,795,814 4,984, % (18,768) $ ,876 62,732,746 4,964,221 5,181, % (515,200) $ q 2,877 62,768,836 4,584,028 4,702, % (282,289) $ ,878 62,779,696 4,369,740 4,431, % 41, $ q 2,878 62,779,696 4,419,091 4,472, % 236, $ ,881 62,958,273 4,804,323 4,887, % (242,725) $ q 2,881 62,958,273 4,594,390 4,644, % 198, $ ,881 62,958,273 4,743,275 4,842, % 393, , $ ,879 62,933,276 5,135,096 5,211, % (818,293) 6 97, ,997 $ ,874 62,848,026 3,978,676 4,308, % (944,770) , ,619 $ ,867 63,265,909 3,415,300 3,781, % (340,311) , ,985 $ ,856 63,136,801 2,981,421 3,311, % 202, , ,775 $ ,825 62,606,392 2,708,888 2,983, % 402, , ,926 $ ,818 62,455,510 2,979,975 3,234, % 1,882, , ,979 $ ,795 62,036,935 4,407,216 4,698, % 121, , ,647 $ ,787 62,027,127 4,121,831 4,810, % (107,401) , ,578 $12.79 Quoted Warehouse Market Statistics Year-End Net Deliveries UC Inventory Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates 4q 33, ,418,034 42,326,669 45,041, % 2,956, ,457, ,539 $ , ,106,258 44,233,624 46,686, % (1,810,366) , ,939,379 $6.69 2q 33, ,618,094 42,141,168 44,387, % 703, , ,661,559 $ , ,352,622 42,815,437 44,825, % 1,709, , ,592,206 $6.60 4q 33, ,483,121 44,444,047 46,665, % 1,442, , ,720,789 $ , ,991,539 46,285,626 48,616, % 265, ,089, ,418,773 $6.55 2q 33, ,054,391 45,136,239 47,944, % 955, , ,801,461 $ , ,747,112 45,569,195 48,592, % (1,422,653) 5 173, ,166,828 $ , ,719,555 43,956,572 47,142, % (2,222,219) , ,516,604 $ , ,026,315 42,145,775 45,226, % (7,258,396) 90 3,365, ,781 $ , ,393,663 33,341,089 36,335, % (8,569,848) 114 3,864, ,643,175 $ , ,872,382 23,242,498 25,244, % 1,208, ,182, ,797,585 $ , ,667,062 22,725,398 24,248, % 13,199, ,627, ,481,784 $ , ,874,966 29,488,059 30,655, % 12,449, ,290, ,598,739 $ , ,405,953 32,782,239 34,636, % 12,243, ,267, ,235,121 $ , ,911,534 38,196,184 40,385, % 8,701, ,554, ,001,453 $6.52 Quoted Total Industrial Market Statistics Year-End Net Deliveries UC Inventory Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates 4q 36, ,934,780 47,122,483 50,025, % 2,938, ,457, ,539 $ , ,839,004 49,197,845 51,867, % (2,325,566) , ,939,379 $7.10 2q 36, ,386,930 46,725,196 49,090, % 420, , ,661,559 $ , ,132,318 47,185,177 49,256, % 1,750, , ,592,206 $6.96 4q 36, ,262,817 48,863,138 51,137, % 1,679, , ,720,789 $ , ,949,812 51,089,949 53,503, % 22, ,089, ,418,773 $6.90 2q 36, ,012,664 49,730,629 52,588, % 1,153, , ,801,461 $ , ,705,385 50,312,470 53,435, % (1,028,777) 7 198, ,166,828 $ , ,652,831 49,091,668 52,354, % (3,040,512) , ,541,601 $ , ,874,341 46,124,451 49,535, % (8,203,166) 100 3,596, ,400 $ , ,659,572 36,756,389 40,117, % (8,910,159) 125 3,993, ,866,160 $ , ,009,183 26,223,919 28,556, % 1,411, ,847, ,898,360 $ , ,273,454 25,434,286 27,232, % 13,601, ,788, ,105,710 $ , ,330,476 32,468,034 33,890, % 14,332, ,748, ,699,718 $ , ,442,888 37,189,455 39,335, % 12,364, ,466, ,665,768 $ , ,938,661 42,318,015 45,195, % 8,593, ,079, ,191,031 $7.15 Quoted 2013 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 17

17 LOS ANGELES YEAR-END LEASING ACTIVITY Historical Rental Rates Based on Quoted Rental Rates $18.00 Flex Warehouse Total Market $16.00 $14.00 Dollars/SF/Year $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 4q 2q 4q 2q 4q by Available Space Type by Building Type Percent of All Vacant Space in Direct vs. Sublet Percent of All Vacant Space by Building Type Los Angeles United States Los Angeles United States 6% 6% 10% 18% 94% 94% 90% 82% Direct Sublet Direct Sublet Flex Warehouse Flex Warehouse U.S. Rental Rate Comparison Based on Average Quoted Rental Rates Future Space Available Space Scheduled to be Available for Occupancy* Dollars/SF/Year $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 Los Angeles United States Millions $ $0.00 2q 4q 2q 4q 2q q q q * Includes Under Construction Space 18 THE COSTAR INDUSTRIAL REPORT 2013 COSTAR GROUP, INC.

18 LOS ANGELES YEAR-END SALES ACTIVITY The Optimist Sales Index Average of Two Highest Price/SF's and Two Lowest Cap Rates Per Quarter 10.0% Cap Rate Price/SF $ % 8.0% $500 Cap Rate Percentage 7.0% 6.0% 5.0% 4.0% 3.0% $400 $300 $200 Dollars/SF 2.0% 1.0% $ % q 2q 4q 2q 4q 2q $0 Source: CoStar COMPS Sales Volume & Price Sales Analysis by Building Size Based on Industrial Building Sales of 15,000 SF and Larger Based on Industrial Bldg Sales From Oct. - Sept. Sales Volume Price/SF Bldg Size # RBA $ Volume Price/SF Cap Rate $700 $120 Millions of Sales Volume Dollars $600 $500 $400 $300 $200 $100 $100 $80 $60 $40 $20 Price/SF < 25,000 SF 580 6,370,066 $ 761,362,301 $ % 25K-99K SF 191 9,109,904 $ 789,446,999 $ % 100K-249K SF 35 5,217,581 $ 426,085,252 $ % $ $0 >250K SF 10 5,637,995 $ 452,814,488 $ % Source: CoStar COMPS Source: CoStar COMPS U.S. Price/SF Comparison Based on Industrial Building Sales of 15,000 SF and Larger U.S. Cap Rate Comparison Based on Industrial Building Sales of 15,000 SF and Larger $120 Los Angeles US 10.0% Los Angeles US Dollars per SF $100 $80 $60 $40 $20 Cap Rate Percentage 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% $ % Source: CoStar COMPS Source: CoStar COMPS 20 THE COSTAR INDUSTRIAL REPORT 2013 COSTAR GROUP, INC.

19 LOS ANGELES YEAR-END A N T E L O P E V A L L E Y M A R K E T MARKET HIGHLIGHTS - FLEX & WAREHOUSE Deliveries, Absorption & Historical Analysis, Flex and Warehouse Delivered SF Absorption SF 8.0% % 6.0% % 4.0% 3.0% Percent Vacant (0.050) 2.0% 1.0% (0.100) q q 2q 4q 2q 4q 2q 4q 0.0% Vacant Space Historical Analysis, Flex and Warehouse Quoted Rental Rates Historical Analysis, Flex and Warehouse 0.60 Direct SF Sublet SF $7.30 $ $ Dollars/SF/Year $7.00 $6.90 $6.80 $6.70 $6.60 $ q 4q 2q 4q $6.40 2q 4q 2q 4q Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 4q 391 9,554, , % (12,574) $ ,554, , % (38,648) $7.02 2q 391 9,554, , % (46,842) $ ,554, , % 81, $7.19 4q 391 9,554, , % 98, $ ,554, , % 30, $6.86 2q 391 9,554, , % 44, $ ,554, , % 21, , $6.93 4q 390 9,547, , % 95, ,153 $ ,547, , % 6, , ,153 $7.08 2q 389 9,523, , % 70, , ,136 $ ,504, , % (85,888) ,724 $ q 388 9,504, , % (2,657) 2 66, ,724 $ ,437, , % 22, ,673 $ q 386 9,437, , % (30,480) 1 7, ,673 $ ,429, , % 45, , ,134 $ THE COSTAR INDUSTRIAL REPORT 2013 COSTAR GROUP, INC.

20 LOS ANGELES YEAR-END C O N E J O V A L L E Y M A R K E T MARKET HIGHLIGHTS - FLEX & WAREHOUSE Deliveries, Absorption & Historical Analysis, Flex and Warehouse Delivered SF Absorption SF 10.0% 9.0% (0.050) (0.100) (0.150) (0.200) 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% Percent Vacant (0.250) q q 2q 4q 2q 4q 2q 4q 0.0% Vacant Space Historical Analysis, Flex and Warehouse Quoted Rental Rates Historical Analysis, Flex and Warehouse 2.50 Direct SF Sublet SF $9.40 $ $ Dollars/SF/Year $8.80 $8.60 $8.40 $8.20 $8.00 $ q 4q 2q 4q $7.60 2q 4q 2q 4q Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 4q ,627,376 2,053, % 90, $ ,627,376 2,144, % 72, , $8.19 2q ,585,414 2,174, % 101, ,962 $ ,585,414 2,275, % 30, ,312 $8.43 4q ,585,414 2,306, % (68,688) $ ,585,414 2,237, % (12,443) $8.52 2q ,585,414 2,225, % (215,157) $ ,585,414 2,010, % (72,101) $9.14 4q ,585,414 1,937, % 54, $ ,585,414 1,992, % (1,800) $9.72 2q ,585,414 1,990, % (119,771) $ ,585,414 1,870, % (135,273) $ q ,585,414 1,735, % (7,611) $ ,585,414 1,727, % (36,288) $ q ,585,414 1,691, % (106,152) 6 141, $ ,443,846 1,443, % (201,204) ,568 $ THE COSTAR INDUSTRIAL REPORT 2013 COSTAR GROUP, INC.