The CoStar Industrial Report

The CoStar Industrial Report Y E A R - E N D 2 0 1 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 19914 Via Baron, and Famsa Warehouse District moving out of (204,643) square feet at 13113 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 20002 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 18175 & 18215 E Rowland St, the 500,000- square-foot lease signed by Acme Furniture at 20002 E Business Rates by Building Type 1998-9% Flex Warehouse Total Market 8% 7% 6% Rate 5% 4% 3% 2% 1% 0% 1998 1998 1999 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2013 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 1

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 $81.59. 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 $89.06. 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.

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 16501 Trojan Way in LA Mirada. This 497,620-square-foot industrial building sold for $62,200,000, or $127.00 per square foot. The property sold on 6/14/. Absorption & Deliveries Past 10 Quarters Net Absorption Deliveries 4.0 3.0 2.9 Reports compiled by: Paula Bonner and David Blake, CoStar Senior Research Managers. 2.0 1.0 0.0 0.2 0.2 0.6 0.3 0.2 1.2 0.6 0.0 1.1 1.7 1.8 0.1 0.5 0.4 0.3 0.8 1.5 (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

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.

INVENTORY & DEVELOPMENT YEAR-END LOS ANGELES Historical Deliveries 1982-30.0 Deliveries Average Delivered SF Millions of SF 25.0 20.0 15.0 10.0 5.0 0.0 12.6 11.4 16.0 22.1 20.7 24.8 21.8 22.0 16.7 9.4 4.3 3.0 2.6 4.0 5.3 7.7 12.8 19.0 18.4 15.0 14.3 12.3 9.6 11.5 9.1 6.3 4.1 3.8 0.8 2.0 3.1 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 * 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 1 264,900 0 0.0% 35,177 264,900 Long Beach Area Ind 3 108,883 22,111 20.3% 17,651 36,294 Central LA Ind 1 99,800 99,800 100.0% 19,687 99,800 Southwest SGV Ind 1 8,000 0 0.0% 11,460 8,000 Westside Ind 1 2,956 2,956 100.0% 18,615 2,956 Ventura County Ind 0 0 0 0.0% 23,008 0 Eastern SGV Ind 0 0 0 0.0% 24,625 0 El Segundo/Hawthorne Ind 0 0 0 0.0% 26,894 0 Gardena/110 Corridor Ind 0 0 0 0.0% 21,612 0 Carson/Rancho Domingz Ind 0 0 0 0.0% 60,673 0 All Other 0 0 0 0.0% 29,136 0 Totals 7 484,539 124,867 25.8% 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 4.0 3.5 500 Millions of SF 3.0 2.5 2.0 1.5 1.0 0.5 Thousands of SF 400 300 200 100 T 0.0 2008 2009 0 2013 2013 2q 2013 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 5

LOS ANGELES YEAR-END INVENTORY & DEVELOPMENT Historical Construction Starts & Deliveries Square Footage Per Quarter Starting and Completing Construction 1.6 1.4 1.4 Construction Starts Deliveries 1.4 1.5 1.2 1.0 1.1 Millions of SF 1.0 0.8 0.6 0.4 0.2 0.0 0.9 0.8 0.8 0.8 0.7 0.6 0.6 0.5 0.4 0.4 0.2 0.4 0.3 0.3 0.4 0.3 0.3 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.0 2009 2009 2q 2009 2009 4q 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 17 288,365 191,759 66.5% $9.54 121,146 167,219 50,000 SF - 99,999 SF 5 359,607 284,687 79.2% $0.00 209,879 149,728 100,000 SF - 249,999 SF 9 1,553,627 1,035,672 66.7% $0.00 914,240 639,387 250,000 SF - 499,999 SF 3 877,667 300,000 34.2% $5.16 877,667 0 >= 500,000 SF 0 0 0 0.0% $0.00 0 0 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.

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 72,161 6.7% 42,766 0 0 $11.34 Carson/Rancho Domingz Ind 42 1,303,808 118,748 127,529 9.8% (10,729) 0 0 $10.86 Central LA Ind 338 5,488,908 492,051 505,853 9.2% (255,841) 0 0 $20.35 Commerce Area Ind 59 1,060,581 108,546 108,546 10.2% (27,874) 0 0 $14.49 Conejo Valley Ind 161 5,143,874 550,516 630,604 12.3% (85,537) 0 0 $12.88 Eastern SGV Ind 45 1,118,419 161,795 168,285 15.0% (79,835) 0 0 $7.31 El Segundo/Hawthorne Ind 67 2,852,033 55,373 55,373 1.9% (184,385) 0 0 $22.56 Gardena/110 Corridor Ind 38 856,741 84,938 84,938 9.9% (35,598) 0 0 $9.21 Long Beach Area Ind 101 1,646,536 180,901 180,901 11.0% (86,705) 0 0 $11.12 Lower SGV Ind 49 1,269,408 92,670 96,245 7.6% 26,353 0 0 $12.73 Lynwood/Paramount Ind 10 136,044 11,200 11,200 8.2% 3,000 0 0 $8.16 Mid Counties-LA Ind 193 4,381,006 262,236 262,236 6.0% 108,121 0 0 $9.91 Northwest SGV Ind 113 2,299,059 88,487 103,087 4.5% (49,678) 0 0 $11.91 SCV/Lancaster/Palmdale Ind 123 3,346,773 286,198 291,400 8.7% (5,970) 0 0 $11.71 SFV East Ind 371 6,009,072 265,581 275,235 4.6% 107,377 0 0 $15.07 SFV West Ind 371 8,851,726 956,703 995,075 11.2% (312,048) 0 0 $8.86 Southwest SGV Ind 23 254,580 6,059 6,059 2.4% 2,750 0 0 $10.54 Torrance/Beach Cities Ind 185 4,708,041 234,351 234,351 5.0% 148,518 0 0 $13.17 Upper SGV Ind 110 2,173,880 172,333 172,333 7.9% (83,762) 0 0 $9.43 Ventura County Ind 82 2,562,744 284,108 287,110 11.2% (11,568) 0 0 $11.28 Vernon Area Ind 29 384,495 40,366 42,866 11.1% (13,415) 0 0 $66.00 Westside Ind 300 5,599,767 270,493 272,993 4.9% 28,818 0 0 $31.45 Totals 2,875 62,516,746 4,795,814 4,984,380 8.0% (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 8,485,658 319,770 319,770 3.8% (59,142) 0 0 $6.53 Carson/Rancho Domingz Ind 1,219 75,204,541 3,276,410 3,568,922 4.7% 1,097,045 440,967 0 $6.21 Central LA Ind 4,610 91,924,337 2,957,317 3,033,957 3.3% (48,629) 46,422 99,800 $7.98 Commerce Area Ind 1,592 73,505,340 2,898,032 3,122,259 4.2% 167,743 0 0 $5.71 Conejo Valley Ind 679 19,483,502 1,421,069 1,422,694 7.3% 380,587 41,962 0 $7.37 Eastern SGV Ind 973 23,949,948 1,260,637 1,291,226 5.4% 504,476 0 0 $5.38 El Segundo/Hawthorne Ind 912 23,477,464 959,892 966,892 4.1% 18,512 207,642 0 $8.51 Gardena/110 Corridor Ind 1,650 35,623,647 1,646,475 1,698,725 4.8% (306,799) 239,354 0 $6.32 Long Beach Area Ind 1,536 27,247,582 2,516,651 2,523,930 9.3% 286,947 429,889 108,883 $6.82 Lower SGV Ind 1,476 79,991,056 4,331,434 5,026,178 6.3% 1,236,095 300,000 0 $5.96 Lynwood/Paramount Ind 523 12,832,454 511,181 514,431 4.0% 158,344 3,000 0 $6.32 Mid Counties-LA Ind 2,489 90,484,862 4,164,223 4,586,284 5.1% 383,648 305,422 0 $6.04 Northwest SGV Ind 1,195 20,365,712 1,093,315 1,110,535 5.5% 26,060 74,051 0 $6.09 SCV/Lancaster/Palmdale Ind 544 19,601,946 988,990 998,924 5.1% 209,243 0 0 $6.99 SFV East Ind 4,649 80,231,769 2,481,091 2,718,401 3.4% 511,747 230,000 0 $8.30 SFV West Ind 1,612 37,601,344 1,922,975 2,110,004 5.6% (72,595) 0 0 $7.71 Southwest SGV Ind 912 10,460,312 223,721 223,721 2.1% 191,070 6,051 8,000 $7.15 Torrance/Beach Cities Ind 864 32,192,399 2,653,548 2,655,885 8.3% (503,715) 358,958 264,900 $7.49 Upper SGV Ind 1,137 24,020,724 753,156 782,643 3.3% 372,081 0 0 $6.61 Ventura County Ind 2,085 47,295,132 3,034,104 3,160,466 6.7% (401,349) 235,548 0 $6.98 Vernon Area Ind 2,178 81,561,980 2,380,040 2,662,744 3.3% (818,472) 0 0 $5.95 Westside Ind 800 14,876,325 532,638 542,538 3.6% 226,122 160,000 2,956 $14.16 Totals 33,961 930,418,034 42,326,669 45,041,129 4.8% 3,559,019 3,079,266 484,539 $6.69 2013 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 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 9,554,909 391,931 391,931 4.1% (16,376) 0 0 $6.70 Carson/Rancho Domingz Ind 1,261 76,508,349 3,395,158 3,696,451 4.8% 1,086,316 440,967 0 $6.26 Central LA Ind 4,948 97,413,245 3,449,368 3,539,810 3.6% (304,470) 46,422 99,800 $9.25 Commerce Area Ind 1,651 74,565,921 3,006,578 3,230,805 4.3% 139,869 0 0 $5.80 Conejo Valley Ind 840 24,627,376 1,971,585 2,053,298 8.3% 295,050 41,962 0 $8.37 Eastern SGV Ind 1,018 25,068,367 1,422,432 1,459,511 5.8% 424,641 0 0 $5.44 El Segundo/Hawthorne Ind 979 26,329,497 1,015,265 1,022,265 3.9% (165,873) 207,642 0 $9.74 Gardena/110 Corridor Ind 1,688 36,480,388 1,731,413 1,783,663 4.9% (342,397) 239,354 0 $6.36 Long Beach Area Ind 1,637 28,894,118 2,697,552 2,704,831 9.4% 200,242 429,889 108,883 $6.97 Lower SGV Ind 1,525 81,260,464 4,424,104 5,122,423 6.3% 1,262,448 300,000 0 $6.00 Lynwood/Paramount Ind 533 12,968,498 522,381 525,631 4.1% 161,344 3,000 0 $6.33 Mid Counties-LA Ind 2,682 94,865,868 4,426,459 4,848,520 5.1% 491,769 305,422 0 $6.16 Northwest SGV Ind 1,308 22,664,771 1,181,802 1,213,622 5.4% (23,618) 74,051 0 $6.59 SCV/Lancaster/Palmdale Ind 667 22,948,719 1,275,188 1,290,324 5.6% 203,273 0 0 $7.39 SFV East Ind 5,020 86,240,841 2,746,672 2,993,636 3.5% 619,124 230,000 0 $8.82 SFV West Ind 1,983 46,453,070 2,879,678 3,105,079 6.7% (384,643) 0 0 $7.91 Southwest SGV Ind 935 10,714,892 229,780 229,780 2.1% 193,820 6,051 8,000 $7.23 Torrance/Beach Cities Ind 1,049 36,900,440 2,887,899 2,890,236 7.8% (355,197) 358,958 264,900 $7.84 Upper SGV Ind 1,247 26,194,604 925,489 954,976 3.6% 288,319 0 0 $6.70 Ventura County Ind 2,167 49,857,876 3,318,212 3,447,576 6.9% (412,917) 235,548 0 $7.21 Vernon Area Ind 2,207 81,946,475 2,420,406 2,705,610 3.3% (831,887) 0 0 $5.96 Westside Ind 1,100 20,476,092 803,131 815,531 4.0% 254,940 160,000 2,956 $18.54 Totals 36,836 992,934,780 47,122,483 50,025,509 5.0% 2,783,777 3,079,266 484,539 $7.09 10 THE COSTAR INDUSTRIAL REPORT 2013 COSTAR GROUP, INC.

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 4,513,958 474,825 554,913 12.3% (146,018) 0 0 $12.88 Alhambra Ind 33 672,183 14,128 14,128 2.1% (1,507) 0 0 $9.02 Antelope Valley 65 1,069,251 72,161 72,161 6.7% 42,766 0 0 $11.34 Arcadia/Sierra M 19 221,535 5,840 5,840 2.6% 4,524 0 0 $13.64 Azusa Ind 33 1,060,991 5,088 5,088 0.5% (5,088) 0 0 $10.23 Baldwin Park Ind 24 344,433 67,284 67,284 19.5% (43,815) 0 0 $9.43 Beach Cities Ind 22 655,401 51,801 51,801 7.9% 1,028 0 0 $14.69 Burbank Ind 122 1,787,250 38,151 40,701 2.3% 60,890 0 0 $16.12 Canoga Park Ind 56 688,390 26,647 55,769 8.1% (23,950) 0 0 $6.09 Carson Central In 6 155,653 7,925 7,925 5.1% 6,388 0 0 $8.66 Carson North Ind 2 60,547 0 0 0.0% 0 0 0 $9.00 Carson South Ind 18 446,362 38,605 38,605 8.6% 20,832 0 0 $8.57 Central Los Ange 338 5,488,908 492,051 505,853 9.2% (255,841) 0 0 $20.35 Central Ventura 22 842,294 132,391 132,391 15.7% 47,423 0 0 $9.56 Cerritos Ind 25 792,891 57,387 57,387 7.2% 65,650 0 0 $10.01 Chatsworth Ind 164 4,469,046 396,251 396,251 8.9% (194,012) 0 0 $9.09 City of Industry C 6 100,492 10,300 10,300 10.2% (9,000) 0 0 $17.27 City of Industry E 9 131,757 22,890 22,890 17.4% (19,810) 0 0 $10.33 City of Industry W 2 184,197 30,144 30,144 16.4% 14,505 0 0 $4.56 Claremont Ind 4 55,733 3,552 3,552 6.4% (1,632) 0 0 $0.00 Commerce Ind 39 748,072 95,114 95,114 12.7% (31,102) 0 0 $14.35 Compton East In 1 4,800 0 0 0.0% 0 0 0 $0.00 Compton West I 6 138,126 30,635 30,635 22.2% (17,125) 0 0 $13.41 Covina Ind 32 381,216 72,964 72,964 19.1% (13,400) 0 0 $8.31 Diamond Bar Ind 0 0 0 0 0.0% 0 0 0 $0.00 Downey Ind 10 264,990 0 0 0.0% 3,975 0 0 $17.88 Duarte Ind 3 32,610 3,140 3,140 9.6% (925) 0 0 $17.40 East San Ferndo 87 1,741,073 47,988 47,988 2.8% 106,074 0 0 $10.84 El Monte Ind 23 755,372 25,014 25,014 3.3% (2,090) 0 0 $11.01 El Segundo Ind 32 1,952,638 26,581 26,581 1.4% (175,489) 0 0 $25.42 Encino Ind 0 0 0 0 0.0% 0 0 0 $0.00 Gardena Central 9 186,529 8,269 8,269 4.4% 24,121 0 0 $10.36 Gardena East Ind 1 8,723 0 0 0.0% 0 0 0 $0.00 Gardena NE Ind 0 0 0 0 0.0% 0 0 0 $0.00 Gardena North C 6 108,586 0 0 0.0% 0 0 0 $0.00 Gardena North I 7 183,628 22,964 22,964 12.5% (22,964) 0 0 $0.00 Gardena NW Ind 1 25,725 0 0 0.0% 0 0 0 $0.00 Gardena South I 14 343,550 53,705 53,705 15.6% (36,755) 0 0 $8.99 Glendale Ind 55 785,587 5,223 5,223 0.7% 15,764 0 0 $11.87 Glendora Ind 14 182,637 0 0 0.0% 0 0 0 $23.40 Hawthorne Ind 12 497,428 1,300 1,300 0.3% (1,300) 0 0 $10.67 Industry/Haciend 12 395,105 380 380 0.1% (380) 0 0 $14.16 Industry/La Puen 2 46,616 0 0 0.0% 4,175 0 0 $0.00 Industry/Rowlan 6 196,091 3,490 3,490 1.8% (762) 0 0 $0.00 Inglewood Ind 18 363,627 27,492 27,492 7.6% (10,246) 0 0 $13.46 Irwindale Ind 4 171,993 23,857 23,857 13.9% (20,534) 0 0 $7.80 2013 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 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 16 451,904 33,773 33,773 7.5% (9,882) 0 0 $9.62 La Verne Ind 5 94,880 16,046 16,046 16.9% 4,100 0 0 $8.53 Lakewood Ind 1 3,600 0 0 0.0% 0 0 0 $0.00 Lawndale Ind 5 38,340 0 0 0.0% 2,650 0 0 $12.42 Long Beach Nort 25 594,114 86,492 86,492 14.6% (37,745) 0 0 $12.19 Long Beach SE In 18 329,262 23,984 23,984 7.3% (15,096) 0 0 $10.46 Long Beach SW 8 79,118 5,863 5,863 7.4% (2,463) 0 0 $9.56 Lynwood Ind 1 3,505 0 0 0.0% 0 0 0 $0.00 Monrovia Ind 29 406,564 42,005 56,605 13.9% (50,605) 0 0 $19.02 Montebello/Whi 20 312,509 13,432 13,432 4.3% 3,228 0 0 $14.95 Moorpark/Simi V 23 629,916 75,691 75,691 12.0% 60,481 0 0 $12.90 North Hollywood 16 264,780 0 0 0.0% 0 0 0 $0.00 Northridge Ind 137 3,113,164 488,805 498,055 16.0% (102,677) 0 0 $7.69 Norwalk/Bellflow 9 126,579 10,143 10,143 8.0% (1,974) 0 0 $12.00 Oxnard/Pt Huen 26 896,397 89,750 89,750 10.0% (37,654) 0 0 $15.89 Paramount North 4 51,711 0 0 0.0% 0 0 0 $0.00 Paramount South 5 80,828 11,200 11,200 13.9% 3,000 0 0 $8.16 Pasadena Ind 91 1,430,382 174,219 181,323 12.7% (75,351) 0 0 $17.74 Pomona North In 3 167,076 66,776 66,776 40.0% (66,776) 0 0 $3.36 Pomona SE Ind 8 150,134 2,302 2,302 1.5% 0 0 0 $5.40 Pomona SW Ind 3 114,830 0 6,490 5.7% 0 0 0 $15.00 Rancho Domingu 9 498,320 41,583 50,364 10.1% (20,824) 0 0 $14.79 Rosemead Ind 1 180,000 0 0 0.0% 0 0 0 $0.00 San Dimas Ind 22 535,766 73,119 73,119 13.6% (15,527) 0 0 $13.08 San Gabriel Ind 5 39,389 0 0 0.0% 0 0 0 $0.00 San Pedro Ind 5 31,107 0 0 0.0% 843 0 0 $0.00 Santa Clarita/Lan 123 3,346,773 286,198 291,400 8.7% (5,970) 0 0 $11.71 Santa Fe Springs 133 2,744,642 160,933 160,933 5.9% 50,352 0 0 $9.84 Signal Hill Ind 37 547,766 56,962 56,962 10.4% (25,344) 0 0 $11.02 South El Monte N 10 100,155 2,325 2,325 2.3% 0 0 0 $0.00 South El Monte N 4 23,715 0 0 0.0% 0 0 0 $8.64 South El Monte S 9 130,710 3,734 3,734 2.9% 2,750 0 0 $10.65 Tarzana Ind 2 35,246 12,700 12,700 36.0% (1,450) 0 0 $9.00 Temple City Ind 3 24,016 1,500 1,500 6.2% 0 0 0 $0.00 Topanga/Malibu 0 0 0 0 0.0% 0 0 0 $0.00 Torrance Central 17 213,964 8,710 8,710 4.1% 1,250 0 0 $10.90 Torrance NE Ind 43 1,529,938 28,045 28,045 1.8% 101,848 0 0 $10.57 Torrance NW Ind 78 1,837,993 94,357 94,357 5.1% 51,870 0 0 $13.65 Torrance South I 25 470,745 51,438 51,438 10.9% (7,478) 0 0 $14.23 Ventura Ind 34 824,053 61,967 64,969 7.9% (21,337) 0 0 $11.86 Vernon Ind 29 384,495 40,366 42,866 11.1% (13,415) 0 0 $66.00 W San Fern Val 0 0 0 0 0.0% 0 0 0 $0.00 West Covina/Wa 12 215,150 25,466 29,041 13.5% 37,625 0 0 $16.19 Westside Ind 300 5,599,767 270,493 272,993 4.9% 28,818 0 0 $31.45 Wilmington Ind 7 61,569 7,600 7,600 12.3% (6,900) 0 0 $12.00 Woodland Hills I 12 545,880 32,300 32,300 5.9% 10,041 0 0 $15.30 Totals 2,875 62,516,746 4,795,814 4,984,380 8.0% (775,242) 0 0 $14.64 12 THE COSTAR INDUSTRIAL REPORT 2013 COSTAR GROUP, INC.

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 7,873,811 314,343 314,343 4.0% 99,103 0 0 $8.68 Alhambra Ind 254 3,812,951 151,807 151,807 4.0% 64,821 0 0 $6.74 Antelope Valley 326 8,485,658 319,770 319,770 3.8% (59,142) 0 0 $6.53 Arcadia/Sierra M 122 1,334,277 77,398 77,398 5.8% (11,016) 0 0 $8.68 Azusa Ind 310 7,448,612 145,322 152,480 2.0% 55,026 0 0 $5.85 Baldwin Park Ind 281 3,904,981 138,797 141,347 3.6% 808 0 0 $7.45 Beach Cities Ind 63 2,238,745 93,530 93,530 4.2% 86,854 0 0 $9.22 Burbank Ind 1,038 15,659,198 448,827 455,501 2.9% 103,315 0 0 $10.98 Canoga Park Ind 318 5,294,136 207,498 207,498 3.9% 276 0 0 $7.84 Carson Central In 266 20,058,977 399,626 444,463 2.2% 1,043,114 224,560 0 $6.57 Carson North Ind 130 5,520,351 288,569 288,569 5.2% (122,601) 0 0 $6.38 Carson South Ind 155 12,290,106 138,575 218,575 1.8% 460,580 216,407 0 $6.58 Central Los Ange 4,610 91,924,337 2,957,317 3,033,957 3.3% (48,629) 46,422 99,800 $7.98 Central Ventura 480 13,018,162 641,485 713,848 5.5% 142,545 10,500 0 $7.00 Cerritos Ind 332 13,456,351 696,585 696,585 5.2% 252,537 0 0 $5.82 Chatsworth Ind 488 15,724,170 1,188,509 1,350,938 8.6% 145,258 0 0 $7.34 City of Industry C 239 11,073,460 478,995 1,103,995 10.0% 113,993 0 0 $6.08 City of Industry E 315 22,585,629 1,534,909 1,549,003 6.9% 99,680 300,000 0 $5.70 City of Industry W 66 4,822,444 362,680 362,680 7.5% 501,872 0 0 $6.61 Claremont Ind 23 557,766 12,744 12,744 2.3% 29,896 0 0 $5.38 Commerce Ind 934 46,257,435 1,888,067 2,047,008 4.4% 113,083 0 0 $5.68 Compton East In 130 2,785,022 19,973 19,973 0.7% 46,063 0 0 $7.10 Compton West I 229 14,357,698 1,293,351 1,293,351 9.0% (132,507) 0 0 $5.92 Covina Ind 201 2,410,756 118,795 118,795 4.9% 703 0 0 $7.79 Diamond Bar Ind 2 32,630 0 0 0.0% 0 0 0 $0.00 Downey Ind 284 7,291,589 118,202 250,142 3.4% (55,384) 0 0 $6.50 Duarte Ind 60 1,061,962 77,735 97,514 9.2% (45,820) 0 0 $7.45 East San Ferndo 2,373 45,759,664 1,594,771 1,820,421 4.0% 187,426 230,000 0 $7.47 El Monte Ind 378 8,891,986 749,401 760,621 8.6% (4,549) 74,051 0 $5.09 El Segundo Ind 280 10,816,811 259,104 266,104 2.5% 59 204,117 0 $12.61 Encino Ind 1 2,005 0 0 0.0% 0 0 0 $0.00 Gardena Central 469 9,240,104 611,281 611,281 6.6% (127,890) 239,354 0 $6.66 Gardena East Ind 183 6,177,960 148,151 148,151 2.4% 170,003 0 0 $6.46 Gardena NE Ind 255 6,728,782 228,775 281,025 4.2% 33,577 0 0 $6.22 Gardena North C 160 3,838,308 176,048 176,048 4.6% (151,108) 0 0 $5.98 Gardena North I 349 4,741,543 235,704 235,704 5.0% (106,283) 0 0 $6.60 Gardena NW Ind 12 138,651 0 0 0.0% 0 0 0 $5.16 Gardena South I 222 4,758,299 246,516 246,516 5.2% (125,098) 0 0 $5.87 Glendale Ind 625 9,316,837 148,339 148,339 1.6% 219,822 0 0 $9.46 Glendora Ind 50 788,997 112,234 112,234 14.2% (464) 0 0 $6.91 Hawthorne Ind 284 7,523,554 476,061 476,061 6.3% 2,666 0 0 $7.08 Industry/Haciend 344 16,357,423 977,362 984,522 6.0% (497,487) 0 0 $5.96 Industry/La Puen 148 9,415,553 277,041 277,041 2.9% 437,435 0 0 $5.40 Industry/Rowlan 233 12,851,185 634,018 681,034 5.3% 579,999 0 0 $6.23 Inglewood Ind 299 4,702,013 218,872 218,872 4.7% 15,842 3,525 0 $10.20 Irwindale Ind 235 8,405,416 160,273 160,273 1.9% 361,828 0 0 $6.64 2013 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 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 206 13,491,777 841,555 1,071,570 7.9% 13,406 0 0 $5.68 La Verne Ind 144 2,947,749 181,814 181,814 6.2% (78,834) 0 0 $6.31 Lakewood Ind 17 285,107 18,790 18,790 6.6% (17,790) 0 0 $4.77 Lawndale Ind 49 435,086 5,855 5,855 1.3% (55) 0 0 $12.94 Long Beach Nort 266 6,156,520 444,806 444,806 7.2% (23,292) 0 0 $7.21 Long Beach SE In 300 6,532,762 1,573,207 1,580,486 24.2% 191,738 178,805 104,883 $6.51 Long Beach SW 454 4,989,065 102,575 102,575 2.1% 130,154 104,705 4,000 $6.02 Lynwood Ind 177 5,511,618 207,525 207,525 3.8% 338,538 3,000 0 $5.32 Monrovia Ind 262 3,542,085 66,111 72,111 2.0% (48) 0 0 $8.86 Montebello/Whi 658 27,247,905 1,009,965 1,075,251 3.9% 54,660 0 0 $5.79 Moorpark/Simi V 402 11,609,691 1,106,726 1,108,351 9.5% 281,484 41,962 0 $6.89 North Hollywood 450 7,085,886 128,295 128,295 1.8% 98,046 0 0 $7.74 Northridge Ind 760 14,877,282 496,369 520,969 3.5% (81,436) 0 0 $8.23 Norwalk/Bellflow 198 7,179,278 259,451 259,451 3.6% (76,685) 0 0 $7.15 Oxnard/Pt Huen 813 22,893,012 1,821,966 1,850,965 8.1% (499,035) 163,500 0 $6.63 Paramount North 94 2,501,763 113,611 113,611 4.5% (76,458) 0 0 $6.96 Paramount South 252 4,819,073 190,045 193,295 4.0% (103,736) 0 0 $7.67 Pasadena Ind 163 2,410,184 160,859 165,845 6.9% (96,862) 0 0 $11.62 Pomona North In 145 2,757,683 17,153 17,153 0.6% 9,363 0 0 $5.44 Pomona SE Ind 356 10,162,509 792,815 823,404 8.1% 366,176 0 0 $4.50 Pomona SW Ind 164 4,647,910 86,637 86,637 1.9% 141,265 0 0 $6.81 Rancho Domingu 309 20,192,387 1,136,316 1,303,991 6.5% (197,604) 0 0 $5.96 Rosemead Ind 70 1,326,223 2,196 2,196 0.2% 4,110 0 0 $3.34 San Dimas Ind 139 2,843,701 169,474 169,474 6.0% 36,610 0 0 $7.95 San Gabriel Ind 85 1,153,068 38,802 38,802 3.4% (24,758) 0 0 $6.93 San Pedro Ind 35 1,454,919 7,022 7,022 0.5% 4,378 0 0 $7.17 Santa Clarita/Lan 544 19,601,946 988,990 998,924 5.1% 209,243 0 0 $6.99 Santa Fe Springs 1,469 49,065,867 2,248,430 2,308,536 4.7% 249,774 305,422 0 $6.14 Signal Hill Ind 287 4,604,249 97,816 97,816 2.1% 204,012 146,379 0 $8.93 South El Monte N 530 6,040,189 142,952 142,952 2.4% 155,569 6,051 0 $7.20 South El Monte N 236 2,346,339 25,475 25,475 1.1% 6,663 0 0 $7.53 South El Monte S 146 2,073,784 55,294 55,294 2.7% 28,838 0 8,000 $6.83 Tarzana Ind 23 494,225 24,599 24,599 5.0% (7,828) 0 0 $11.96 Temple City Ind 24 305,122 7,600 7,600 2.5% (2,500) 0 0 $7.40 Topanga/Malibu 1 2,271 0 0 0.0% 0 0 0 $0.00 Torrance Central 160 2,813,046 100,918 103,255 3.7% 107,029 0 0 $6.73 Torrance NE Ind 243 13,776,114 1,241,289 1,241,289 9.0% (85,318) 358,958 0 $7.47 Torrance NW Ind 133 6,561,079 609,828 609,828 9.3% (169,439) 0 264,900 $7.18 Torrance South I 265 6,803,415 607,983 607,983 8.9% (442,841) 0 0 $7.96 Ventura Ind 792 11,383,958 570,653 595,653 5.2% (44,859) 61,548 0 $8.06 Vernon Ind 2,178 81,561,980 2,380,040 2,662,744 3.3% (818,472) 0 0 $5.95 W San Fern Val 1 42,689 0 0 0.0% 0 0 0 $0.00 West Covina/Wa 131 2,885,362 66,429 67,903 2.4% 603 0 0 $9.55 Westside Ind 799 14,874,054 532,638 542,538 3.6% 226,122 160,000 2,956 $14.16 Wilmington Ind 177 3,224,960 272,435 272,435 8.4% (202,253) 0 0 $6.75 Woodland Hills I 21 1,166,837 6,000 6,000 0.5% (128,865) 0 0 $7.65 Totals 33,961 930,418,034 42,326,669 45,041,129 4.8% 3,559,019 3,079,266 484,539 $6.69 14 THE COSTAR INDUSTRIAL REPORT 2013 COSTAR GROUP, INC.

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 415 12,387,769 789,168 869,256 7.0% (46,915) 0 0 $10.43 Alhambra Ind 287 4,485,134 165,935 165,935 3.7% 63,314 0 0 $7.18 Antelope Valley 391 9,554,909 391,931 391,931 4.1% (16,376) 0 0 $6.70 Arcadia/Sierra M 141 1,555,812 83,238 83,238 5.4% (6,492) 0 0 $9.03 Azusa Ind 343 8,509,603 150,410 157,568 1.9% 49,938 0 0 $5.93 Baldwin Park Ind 305 4,249,414 206,081 208,631 4.9% (43,007) 0 0 $7.58 Beach Cities Ind 85 2,894,146 145,331 145,331 5.0% 87,882 0 0 $10.43 Burbank Ind 1,160 17,446,448 486,978 496,202 2.8% 164,205 0 0 $11.55 Canoga Park Ind 374 5,982,526 234,145 263,267 4.4% (23,674) 0 0 $7.72 Carson Central In 272 20,214,630 407,551 452,388 2.2% 1,049,502 224,560 0 $6.58 Carson North Ind 132 5,580,898 288,569 288,569 5.2% (122,601) 0 0 $6.48 Carson South Ind 173 12,736,468 177,180 257,180 2.0% 481,412 216,407 0 $6.64 Central Los Ange 4,948 97,413,245 3,449,368 3,539,810 3.6% (304,470) 46,422 99,800 $9.25 Central Ventura 502 13,860,456 773,876 846,239 6.1% 189,968 10,500 0 $7.27 Cerritos Ind 357 14,249,242 753,972 753,972 5.3% 318,187 0 0 $5.99 Chatsworth Ind 652 20,193,216 1,584,760 1,747,189 8.7% (48,754) 0 0 $7.57 City of Industry C 245 11,173,952 489,295 1,114,295 10.0% 104,993 0 0 $6.15 City of Industry E 324 22,717,386 1,557,799 1,571,893 6.9% 79,870 300,000 0 $5.73 City of Industry W 68 5,006,641 392,824 392,824 7.8% 516,377 0 0 $6.60 Claremont Ind 27 613,499 16,296 16,296 2.7% 28,264 0 0 $5.38 Commerce Ind 973 47,005,507 1,983,181 2,142,122 4.6% 81,981 0 0 $5.78 Compton East In 131 2,789,822 19,973 19,973 0.7% 46,063 0 0 $7.10 Compton West I 235 14,495,824 1,323,986 1,323,986 9.1% (149,632) 0 0 $5.93 Covina Ind 233 2,791,972 191,759 191,759 6.9% (12,697) 0 0 $7.89 Diamond Bar Ind 2 32,630 0 0 0.0% 0 0 0 $0.00 Downey Ind 294 7,556,579 118,202 250,142 3.3% (51,409) 0 0 $6.59 Duarte Ind 63 1,094,572 80,875 100,654 9.2% (46,745) 0 0 $7.59 East San Ferndo 2,460 47,500,737 1,642,759 1,868,409 3.9% 293,500 230,000 0 $7.59 El Monte Ind 401 9,647,358 774,415 785,635 8.1% (6,639) 74,051 0 $5.33 El Segundo Ind 312 12,769,449 285,685 292,685 2.3% (175,430) 204,117 0 $17.40 Encino Ind 1 2,005 0 0 0.0% 0 0 0 $0.00 Gardena Central 478 9,426,633 619,550 619,550 6.6% (103,769) 239,354 0 $6.71 Gardena East Ind 184 6,186,683 148,151 148,151 2.4% 170,003 0 0 $6.46 Gardena NE Ind 255 6,728,782 228,775 281,025 4.2% 33,577 0 0 $6.22 Gardena North C 166 3,946,894 176,048 176,048 4.5% (151,108) 0 0 $5.98 Gardena North I 356 4,925,171 258,668 258,668 5.3% (129,247) 0 0 $6.60 Gardena NW Ind 13 164,376 0 0 0.0% 0 0 0 $5.16 Gardena South I 236 5,101,849 300,221 300,221 5.9% (161,853) 0 0 $6.12 Glendale Ind 680 10,102,424 153,562 153,562 1.5% 235,586 0 0 $9.58 Glendora Ind 64 971,634 112,234 112,234 11.6% (464) 0 0 $7.07 Hawthorne Ind 296 8,020,982 477,361 477,361 6.0% 1,366 0 0 $7.09 Industry/Haciend 356 16,752,528 977,742 984,902 5.9% (497,867) 0 0 $5.96 Industry/La Puen 150 9,462,169 277,041 277,041 2.9% 441,610 0 0 $5.40 Industry/Rowlan 239 13,047,276 637,508 684,524 5.2% 579,237 0 0 $6.23 Inglewood Ind 317 5,065,640 246,364 246,364 4.9% 5,596 3,525 0 $10.45 Irwindale Ind 239 8,577,409 184,130 184,130 2.1% 341,294 0 0 $6.65 2013 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 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 222 13,943,681 875,328 1,105,343 7.9% 3,524 0 0 $5.85 La Verne Ind 149 3,042,629 197,860 197,860 6.5% (74,734) 0 0 $6.48 Lakewood Ind 18 288,707 18,790 18,790 6.5% (17,790) 0 0 $4.77 Lawndale Ind 54 473,426 5,855 5,855 1.2% 2,595 0 0 $12.84 Long Beach Nort 291 6,750,634 531,298 531,298 7.9% (61,037) 0 0 $7.42 Long Beach SE In 318 6,862,024 1,597,191 1,604,470 23.4% 176,642 178,805 104,883 $6.57 Long Beach SW 462 5,068,183 108,438 108,438 2.1% 127,691 104,705 4,000 $6.13 Lynwood Ind 178 5,515,123 207,525 207,525 3.8% 338,538 3,000 0 $5.32 Monrovia Ind 291 3,948,649 108,116 128,716 3.3% (50,653) 0 0 $10.35 Montebello/Whi 678 27,560,414 1,023,397 1,088,683 4.0% 57,888 0 0 $5.85 Moorpark/Simi V 425 12,239,607 1,182,417 1,184,042 9.7% 341,965 41,962 0 $7.11 North Hollywood 466 7,350,666 128,295 128,295 1.7% 98,046 0 0 $7.74 Northridge Ind 897 17,990,446 985,174 1,019,024 5.7% (184,113) 0 0 $8.08 Norwalk/Bellflow 207 7,305,857 269,594 269,594 3.7% (78,659) 0 0 $7.17 Oxnard/Pt Huen 839 23,789,409 1,911,716 1,940,715 8.2% (536,689) 163,500 0 $6.79 Paramount North 98 2,553,474 113,611 113,611 4.4% (76,458) 0 0 $6.96 Paramount South 257 4,899,901 201,245 204,495 4.2% (100,736) 0 0 $7.68 Pasadena Ind 254 3,840,566 335,078 347,168 9.0% (172,213) 0 0 $14.60 Pomona North In 148 2,924,759 83,929 83,929 2.9% (57,413) 0 0 $5.25 Pomona SE Ind 364 10,312,643 795,117 825,706 8.0% 366,176 0 0 $4.50 Pomona SW Ind 167 4,762,740 86,637 93,127 2.0% 141,265 0 0 $6.94 Rancho Domingu 318 20,690,707 1,177,899 1,354,355 6.5% (218,428) 0 0 $6.07 Rosemead Ind 71 1,506,223 2,196 2,196 0.1% 4,110 0 0 $3.34 San Dimas Ind 161 3,379,467 242,593 242,593 7.2% 21,083 0 0 $8.41 San Gabriel Ind 90 1,192,457 38,802 38,802 3.3% (24,758) 0 0 $6.93 San Pedro Ind 40 1,486,026 7,022 7,022 0.5% 5,221 0 0 $7.17 Santa Clarita/Lan 667 22,948,719 1,275,188 1,290,324 5.6% 203,273 0 0 $7.39 Santa Fe Springs 1,602 51,810,509 2,409,363 2,469,469 4.8% 300,126 305,422 0 $6.23 Signal Hill Ind 324 5,152,015 154,778 154,778 3.0% 178,668 146,379 0 $9.30 South El Monte N 540 6,140,344 145,277 145,277 2.4% 155,569 6,051 0 $7.20 South El Monte N 240 2,370,054 25,475 25,475 1.1% 6,663 0 0 $7.54 South El Monte S 155 2,204,494 59,028 59,028 2.7% 31,588 0 8,000 $7.11 Tarzana Ind 25 529,471 37,299 37,299 7.0% (9,278) 0 0 $11.57 Temple City Ind 27 329,138 9,100 9,100 2.8% (2,500) 0 0 $7.40 Topanga/Malibu 1 2,271 0 0 0.0% 0 0 0 $0.00 Torrance Central 177 3,027,010 109,628 111,965 3.7% 108,279 0 0 $6.88 Torrance NE Ind 286 15,306,052 1,269,334 1,269,334 8.3% 16,530 358,958 0 $7.55 Torrance NW Ind 211 8,399,072 704,185 704,185 8.4% (117,569) 0 264,900 $7.92 Torrance South I 290 7,274,160 659,421 659,421 9.1% (450,319) 0 0 $8.54 Ventura Ind 826 12,208,011 632,620 660,622 5.4% (66,196) 61,548 0 $8.37 Vernon Ind 2,207 81,946,475 2,420,406 2,705,610 3.3% (831,887) 0 0 $5.96 W San Fern Val 1 42,689 0 0 0.0% 0 0 0 $0.00 West Covina/Wa 143 3,100,512 91,895 96,944 3.1% 38,228 0 0 $10.28 Westside Ind 1,099 20,473,821 803,131 815,531 4.0% 254,940 160,000 2,956 $18.54 Wilmington Ind 184 3,286,529 280,035 280,035 8.5% (209,153) 0 0 $6.78 Woodland Hills I 33 1,712,717 38,300 38,300 2.2% (118,824) 0 0 $9.90 Totals 36,836 992,934,780 47,122,483 50,025,509 5.0% 2,783,777 3,079,266 484,539 $7.09 16 THE COSTAR INDUSTRIAL REPORT 2013 COSTAR GROUP, INC.

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 4,984,380 8.0% (18,768) 0 0 0 0 $14.64 2,876 62,732,746 4,964,221 5,181,612 8.3% (515,200) 0 0 0 0 $14.67 2q 2,877 62,768,836 4,584,028 4,702,502 7.5% (282,289) 0 0 0 0 $14.62 2,878 62,779,696 4,369,740 4,431,073 7.1% 41,015 0 0 0 0 $14.49 4q 2,878 62,779,696 4,419,091 4,472,088 7.1% 236,742 0 0 0 0 $14.35 2,881 62,958,273 4,804,323 4,887,407 7.8% (242,725) 0 0 0 0 $14.33 2q 2,881 62,958,273 4,594,390 4,644,682 7.4% 198,134 0 0 0 0 $14.22 2,881 62,958,273 4,743,275 4,842,816 7.7% 393,876 2 24,997 0 0 $14.34 2,879 62,933,276 5,135,096 5,211,695 8.3% (818,293) 6 97,324 2 24,997 $15.22 2009 2,874 62,848,026 3,978,676 4,308,152 6.9% (944,770) 10 230,826 4 62,619 $16.17 2008 2,867 63,265,909 3,415,300 3,781,265 6.0% (340,311) 11 129,108 9 222,985 $17.60 2007 2,856 63,136,801 2,981,421 3,311,846 5.2% 202,395 35 665,879 8 100,775 $16.43 2006 2,825 62,606,392 2,708,888 2,983,832 4.8% 402,045 8 160,582 29 623,926 $13.72 2005 2,818 62,455,510 2,979,975 3,234,995 5.2% 1,882,489 25 458,375 5 100,979 $13.38 2004 2,795 62,036,935 4,407,216 4,698,909 7.6% 121,064 9 198,808 23 430,647 $13.02 2003 2,787 62,027,127 4,121,831 4,810,165 7.8% (107,401) 15 524,685 8 189,578 $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 33,961 930,418,034 42,326,669 45,041,129 4.8% 2,956,904 12 1,457,796 7 484,539 $6.69 33,950 929,106,258 44,233,624 46,686,257 5.0% (1,810,366) 13 790,559 18 1,939,379 $6.69 2q 33,942 928,618,094 42,141,168 44,387,727 4.8% 703,081 5 287,807 30 2,661,559 $6.63 33,938 928,352,622 42,815,437 44,825,336 4.8% 1,709,400 4 543,104 29 2,592,206 $6.60 4q 33,941 928,483,121 44,444,047 46,665,235 5.0% 1,442,439 3 135,101 19 1,720,789 $6.56 33,942 928,991,539 46,285,626 48,616,092 5.2% 265,286 9 1,089,645 19 1,418,773 $6.55 2q 33,937 928,054,391 45,136,239 47,944,230 5.2% 955,625 3 587,081 22 1,801,461 $6.62 33,939 927,747,112 45,569,195 48,592,576 5.2% (1,422,653) 5 173,523 19 2,166,828 $6.56 33,938 927,719,555 43,956,572 47,142,366 5.1% (2,222,219) 27 692,668 10 1,516,604 $6.56 2009 33,944 928,026,315 42,145,775 45,226,907 4.9% (7,258,396) 90 3,365,193 22 387,781 $7.02 2008 33,886 926,393,663 33,341,089 36,335,859 3.9% (8,569,848) 114 3,864,651 64 2,643,175 $8.10 2007 33,813 923,872,382 23,242,498 25,244,730 2.7% 1,208,803 136 5,182,090 91 3,797,585 $8.12 2006 33,723 921,667,062 22,725,398 24,248,213 2.6% 13,199,497 211 8,627,967 104 4,481,784 $7.37 2005 33,553 914,874,966 29,488,059 30,655,614 3.4% 12,449,731 207 10,290,201 160 6,598,739 $6.94 2004 33,389 906,405,953 32,782,239 34,636,332 3.8% 12,243,349 206 8,267,823 174 8,235,121 $6.72 2003 33,213 899,911,534 38,196,184 40,385,262 4.5% 8,701,026 235 10,554,403 173 7,001,453 $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 36,836 992,934,780 47,122,483 50,025,509 5.0% 2,938,136 12 1,457,796 7 484,539 $7.09 36,826 991,839,004 49,197,845 51,867,869 5.2% (2,325,566) 13 790,559 18 1,939,379 $7.10 2q 36,819 991,386,930 46,725,196 49,090,229 5.0% 420,792 5 287,807 30 2,661,559 $7.03 36,816 991,132,318 47,185,177 49,256,409 5.0% 1,750,415 4 543,104 29 2,592,206 $6.96 4q 36,819 991,262,817 48,863,138 51,137,323 5.2% 1,679,181 3 135,101 19 1,720,789 $6.89 36,823 991,949,812 51,089,949 53,503,499 5.4% 22,561 9 1,089,645 19 1,418,773 $6.90 2q 36,818 991,012,664 49,730,629 52,588,912 5.3% 1,153,759 3 587,081 22 1,801,461 $6.98 36,820 990,705,385 50,312,470 53,435,392 5.4% (1,028,777) 7 198,520 19 2,166,828 $6.92 36,817 990,652,831 49,091,668 52,354,061 5.3% (3,040,512) 33 789,992 12 1,541,601 $6.97 2009 36,818 990,874,341 46,124,451 49,535,059 5.0% (8,203,166) 100 3,596,019 26 450,400 $7.49 2008 36,753 989,659,572 36,756,389 40,117,124 4.1% (8,910,159) 125 3,993,759 73 2,866,160 $8.58 2007 36,669 987,009,183 26,223,919 28,556,576 2.9% 1,411,198 171 5,847,969 99 3,898,360 $8.61 2006 36,548 984,273,454 25,434,286 27,232,045 2.8% 13,601,542 219 8,788,549 133 5,105,710 $7.79 2005 36,371 977,330,476 32,468,034 33,890,609 3.5% 14,332,220 232 10,748,576 165 6,699,718 $7.42 2004 36,184 968,442,888 37,189,455 39,335,241 4.1% 12,364,413 215 8,466,631 197 8,665,768 $7.41 2003 36,000 961,938,661 42,318,015 45,195,427 4.7% 8,593,625 250 11,079,088 181 7,191,031 $7.15 Quoted 2013 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 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 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 4.4 1.6 $1.00 1.0 $0.00 2q 4q 2q 4q 2q 0.5 0.0 0.2 0.0 0.0 0.0 2013 2013 2q 2013 2013 4q 2014 2014 2q * Includes Under Construction Space 18 THE COSTAR INDUSTRIAL REPORT 2013 COSTAR GROUP, INC.

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 $600 9.0% 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% $100 0.0% 2009 4q 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 $ 119.52 7.08% 25K-99K SF 191 9,109,904 $ 789,446,999 $ 86.66 8.25% 100K-249K SF 35 5,217,581 $ 426,085,252 $ 81.66 6.79% $0 2009 2009 $0 >250K SF 10 5,637,995 $ 452,814,488 $ 80.31 6.29% 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% $0 2009 2009 0.0% 2009 2009 Source: CoStar COMPS Source: CoStar COMPS 20 THE COSTAR INDUSTRIAL REPORT 2013 COSTAR GROUP, INC.

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 0.150 Delivered SF Absorption SF 8.0% 0.100 7.0% 6.0% 0.050 0.000 5.0% 4.0% 3.0% Percent Vacant (0.050) 2.0% 1.0% (0.100) 2009 2009 2q 2009 2009 4q 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 $7.20 0.50 $7.10 0.40 0.30 0.20 0.10 Dollars/SF/Year $7.00 $6.90 $6.80 $6.70 $6.60 $6.50 0.00 2q 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 9,554,909 391,931 4.1% (12,574) 0 0 0 0 $6.70 391 9,554,909 379,357 4.0% (38,648) 0 0 0 0 $7.02 2q 391 9,554,909 340,709 3.6% (46,842) 0 0 0 0 $7.17 391 9,554,909 293,867 3.1% 81,688 0 0 0 0 $7.19 4q 391 9,554,909 375,555 3.9% 98,439 0 0 0 0 $7.21 391 9,554,909 473,994 5.0% 30,446 0 0 0 0 $6.86 2q 391 9,554,909 504,440 5.3% 44,870 0 0 0 0 $6.96 391 9,554,909 549,310 5.7% 21,666 1 7,153 0 0 $6.93 4q 390 9,547,756 563,823 5.9% 95,279 0 0 1 7,153 $7.01 390 9,547,756 659,102 6.9% 6,307 1 24,136 1 7,153 $7.08 2q 389 9,523,620 641,273 6.7% 70,892 1 19,588 1 24,136 $7.10 388 9,504,032 692,577 7.3% (85,888) 0 0 2 43,724 $7.21 2009 4q 388 9,504,032 606,689 6.4% (2,657) 2 66,537 2 43,724 $6.61 2009 386 9,437,495 537,495 5.7% 22,543 0 0 3 90,673 $7.19 2009 2q 386 9,437,495 560,038 5.9% (30,480) 1 7,998 3 90,673 $8.58 2009 385 9,429,497 521,560 5.5% 45,024 4 55,623 2 32,134 $8.09 22 THE COSTAR INDUSTRIAL REPORT 2013 COSTAR GROUP, INC.

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 0.200 0.150 Delivered SF Absorption SF 10.0% 9.0% 0.100 0.050 0.000 (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) 2009 2009 2q 2009 2009 4q 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 $9.20 2.00 $9.00 1.50 1.00 0.50 Dollars/SF/Year $8.80 $8.60 $8.40 $8.20 $8.00 $7.80 0.00 2q 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 840 24,627,376 2,053,298 8.3% 90,909 0 0 0 0 $8.37 840 24,627,376 2,144,207 8.7% 72,313 3 41,962 0 0 $8.19 2q 837 24,585,414 2,174,558 8.8% 101,311 0 0 3 41,962 $8.33 837 24,585,414 2,275,869 9.3% 30,517 0 0 2 30,312 $8.43 4q 837 24,585,414 2,306,386 9.4% (68,688) 0 0 0 0 $8.59 837 24,585,414 2,237,698 9.1% (12,443) 0 0 0 0 $8.52 2q 837 24,585,414 2,225,255 9.1% (215,157) 0 0 0 0 $8.54 837 24,585,414 2,010,098 8.2% (72,101) 0 0 0 0 $9.14 4q 837 24,585,414 1,937,997 7.9% 54,292 0 0 0 0 $9.22 837 24,585,414 1,992,289 8.1% (1,800) 0 0 0 0 $9.72 2q 837 24,585,414 1,990,489 8.1% (119,771) 0 0 0 0 $9.46 837 24,585,414 1,870,718 7.6% (135,273) 0 0 0 0 $9.60 2009 4q 837 24,585,414 1,735,445 7.1% (7,611) 0 0 0 0 $9.84 2009 837 24,585,414 1,727,834 7.0% (36,288) 0 0 0 0 $10.27 2009 2q 837 24,585,414 1,691,546 6.9% (106,152) 6 141,568 0 0 $10.22 2009 831 24,443,846 1,443,826 5.9% (201,204) 0 0 6 141,568 $10.61 26 THE COSTAR INDUSTRIAL REPORT 2013 COSTAR GROUP, INC.