Year-End 2017 / Industrial Market Report. Regional Economic Activity

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Year-End 207 / Industrial Market Report -Dade County on Market Facts 84.4 MSF Total inventory in the -Dade industrial market 3,020,597 SF Direct net absorption for 207 2.87% Overall Vacancy $7.

continue to strengthen and fuel growth in the local industrial market. As of November 207, -Dade County s unemployment rate stood at 4.6% which is 40 bps below November s rate in 206.

1 Year-End 207 / Industrial Market Report -Dade County on Market Facts 84.4 MSF Total inventory in the -Dade industrial market 3,020,597 SF Direct net absorption for % Overall Vacancy $7.32 PSF Average asking lease rate for industrial space in -Dade County on a triple-net basis New Supply Continues to Chase Increasing Demand Regional Economic Activity Strong economic fundamentals continue to strengthen and fuel growth in the local industrial market. As of November 207, -Dade County s unemployment rate stood at 4.6% which is 40 bps below November s rate in 206. Furthermore, total employment is also up, growing by 2.3% in the same time period and currently sitting at.3 million jobs. These economic factors have contributed to both an active leasing market and significant investment interest by large institutional buyers. has become a hotbed of industrial activity, attracting institutional investors, logistics operators and e-commerce companies alike. Due to this tremendous growth, is now on par with many top U.S. markets such as Los Angeles, New York, Chicago, Atlanta and North Carolina in terms of overall vacancy and total net absorption. Last-Mile Space Drives Leasing Activity With more than 3 million sf of industrial space absorbed in 207, the market now boasts occupancy rates above 97%. -Dade has improved global ties and entered a period of unprecedented growth which is largely a result of improved infrastructure including the recent expansion of the Panama Canal and the dredging of the shipping channel in Port. According to the Prologis Industrial Business Indicator, tenant demand for industrial space is very strong and is largely driven by the industry s logistical dependency on seaports. In addition, offers many newly-built properties that satisfy e-commerce occupiers' requirement for last-mile space. These characteristics found in the -Dade industrial market are all contributing

-Dade County Industrial Market Report Year-End 207 Tenant demand for industrial space is very strong and largely driven by the industry's logistical dependency on seaports.

Large Capital Supply Drives Development Activity The -Dade industrial market has experienced a return to prerecession occupancy levels and lease rates, with over 4 million sf under construction

2 -Dade County Industrial Market Report Year-End 207 Tenant demand for industrial space is very strong and largely driven by the industry's logistical dependency on seaports. Average Asking Rent Rate (NNN) Vacancy Rate Net Absorption (SF) factors to the county's significant demand and leasing activity. Large Capital Supply Drives Development Activity The -Dade industrial market has experienced a return to prerecession occupancy levels and lease rates, with over 4 million sf under construction across the county. Speculative industrial development is also on the rise as demonstrated by the 4 million sf delivered in 207, in part because there is an influx of capital funding these projects. Following the recession, construction loans were mostly available for built-to-suit developments. However, this is no longer the case and the near-limitless supply of capital from institutional funds and private equity to buy large parcels of industrial land is adding a new generation of industrial space that meets the needs of today s large occupiers. At the same time, there are smaller companies, such as local produce companies, adapting older buildings to suit their needs. As long as there is positive absorption taking place in the industrial market, it will not become overbuilt. Large Sales Prompt Future Development Investment sales throughout the year have been comprised principally of private investors, which account for 44% of the capital flow, followed by institutional investors accounting for 25%, REITs for 24% and finally cross-border capital for 7%. In 207, $ billion in total volume traded for an average of $80 per sf. This represents a significant 60% decrease in total volume and a 6% increase in the average price per sf compared to the prior year. The most significant investment transaction of 207 was Foundry Commercial s acquisition of the Free Zone Business Park for $90 million, or $06 per sf. Built in 979, the 850,000-sf industrial complex last traded in 2006 for $76.2 million, resulting in an 8% gain over the last years. However, a majority of the value in the deal comes from the 8 acres of undeveloped land where Foundry Commercial and American Realty Advisors plan to build another 300,000 sf of industrial space. Another notable sale was CenterPoint Properties' acquisition of the Winn Dixie Distribution center for $59 million, or $6 per sf. This was one of two investments CenterPoint made in the market. The second was the $7.5 million purchase of Iron Mountain in a nearby park. Looking Ahead s access to a global investment pool allows for the development of the large properties with amenities which sophisticated tenants are seeking. In addition to 4 million sf of industrial space currently under construction, there are several buildings projected to begin construction in 208. Avison Young anticipates the market will remain strong throughout 208, and for continued demand to drive future industrial development.

3 -Dade County Industrial Market Report Year-End 207 Dade County Bulk Distribution 30,95,084 2,59,559 2,977 $ % 7.5% 0.70% 7.85% 4,40,975 2,354,25 Flex 4,43,27 224,76 32,30 $ %.56% 0.22%.78% 0 69,268 Manufacturing 22,387,075 43,299 0 $ % 0.64% 0.00% 0.64% 0 35,32 Warehouse / Distribution 7,42,802 2,398,957 7,662 $ % 2.04% 0.0% 2.4% 0,30 46,883 Total 84,426,78 4,926,576 36,769 $ % 2.67% 0.20% 2.87% 4,242,05 3,020,597 Airport Bulk Distribution,962, ,90 48,682 $ % 6.34% 0.4% 6.74% 766, ,98 Flex 7,684,3 89,469 22,30 $ %.6% 0.29%.45% 0 (27,974) Manufacturing 3,274,844 36,499 0 $ %.% 0.00%.% 0 67,47 Warehouse / Distribution 45,06, ,22 50,875 $ % 2.02% 0.% 2.3% 0 653,240 Total 67,937,76,79,099 2,687 $ % 2.64% 0.8% 2.82% 766,200,20,33 Central Dade Bulk Distribution 228, $ % 0.00% 0.00% 0.00% 0 0 Flex 53, $ % 0.00% 0.00% 0.00% 0 6,600 Manufacturing,88,935 6,850 0 $ % 0.93% 0.00% 0.93% 0 4,724 Warehouse / Distribution 7,770, ,749 0 $ % 2.6% 0.00% 2.6% 0 2,938 Total 0,330,879 29,599 0 $ % 2.3% 0.00% 2.3% 0 79,262 Bulk Distribution $ % 0.00% 0.00% 0.00% 0 0 Flex 58, $ % 0.00% 0.00% 0.00% 0 0 Manufacturing 6,344,92 30,200 0 $ % 0.48% 0.00% 0.48% 0 (30,200) Warehouse / Distribution 3,856, ,834 55,307 $ % 2.34% 0.40% 2.74% 0 (36,549) Total 20,360, ,034 55,307 $ %.74% 0.27% 2.02% 0 (66,749) Bulk Distribution $ % 0.00% 0.00% 0.00% 0 0 Flex,846,69 9,80 0 $ %.07% 0.00%.07% 0 9,896 Manufacturing 755, $ % 0.00% 0.00% 0.00% 0 0 Warehouse / Distribution 6,079,598 8,09 0 $ % 0.30% 0.00% 0.30% 0 3,337 Total 8,68,360 37,90 0 $ % 0.44% 0.00% 0.44% 0 95,233 Medley Bulk Distribution 4,300, ,902 40,895 $ % 6.25% 0.99% 7.24% 708,590,377,472 Flex 60, $ % 0.2% 0.00% 0.2% 0 2,670 Manufacturing 3,254,00 5,000 0 $ % 0.46% 0.00% 0.46% 0 (3,600) Warehouse / Distribution,39,43 86,436 0 $ %.67% 0.00%.67% 0 (7,009) Total 29,304,867,096,088 40,895 $ % 3.74% 0.48% 4.22% 708,590,295,533 Bulk Distribution 989,200 8,64 0 $ %.84% 0.00%.84% 2,58,685 8,38 Flex,644,803 82,567 0,000 $ % 5.02% 0.6% 5.63% 0 (2,567) Manufacturing 2,36,93 32,000 0 $ %.50% 0.00%.50% 0 0,000 Warehouse / Distribution 6,64, ,223 4,480 $ % 3.74% 0.07% 3.8% 0,30 8,574 Total,42,52 380,954 4,480 $ % 3.34% 0.3% 3.47% 2,259,85 244,325 North Dade Bulk Distribution 2,477, ,583 22,400 $ % 9.76% 0.90% 20.66% 507,500 2,47 Flex,85,09 9,874 0 $ %.68% 0.00%.68% 0 29,083 Manufacturing 4,660,06 2,750 0 $ % 0.27% 0.00% 0.27% 0 (2,750) Warehouse / Distribution 23,272,253 49,37 7,000 $ %.80% 0.03%.83% 0 (49,584) Total 3,594,943 94,578 29,400 $ % 2.98% 0.09% 3.07% 507,500 79,66 South Dade Bulk Distribution 237, $ % 0.00% 0.00% 0.00% 0 237,000 Flex 787,959 2,300 0 $ %.56% 0.00%.56% 0 4,560 Manufacturing 42, $ % 0.00% 0.00% 0.00% 0 0 Warehouse / Distribution 3,636,502 92,04 0 $ % 2.53% 0.00% 2.53% 0 (59,064) Total 4,803,69 04,34 0 $ % 2.7% 0.00% 2.7% 0 92,496 Reporting Methodology: This report includes all industrial buildings and parks 20,000 SF and greater in Dade County that are not government owned. All rents are reported on a triple net basis and are direct weighted averages calculated on total available space. The information in this report has been collected by the Avison Young research team via sources that are deemed reliable but is not guaranteed.

4 -Dade County Industrial Market Report Year-End 207 The -Dade industrial market has experienced a return to prerecession occupancy levels and lease rates, with 4 million sf under construction across the county. Leading Indicators (Y-O-Y 4Q-206 to 4Q-207) Vacancy Rate 2.87% Net Absorption 3,020,597 SF Average Asking Rate (NNN) $7.32 / SF New Construction 4,242,05 SF South Florida Labor Force 3.4 MM Significant 207 Lease Transactions - Sorted by SF Tenant Property Type SF Qtr Leased Submarket Bel USA Medley Logistics Park Renewal 342,750 Q7 Medley Ross Furniture NW 36th Avenue New Lease 4,000 4Q7 AMG Global Distribution International Tradeport New Lease 3,700 2Q7 Medley Pro Intermodal Int. Logistics Center - East New Lease 04,66 3Q7 Medley DHL Beacon Centre - Bldg 26 Renewal 00,044 4Q7 Airport H Greg, Inc. Bristol Logistics Center New Lease 96,920 Q7 Airport Significant 207 Sales Transactions - Sorted by Sale Price Property SF Sale Price Price/SF Buyer Qtr Sold Submarket Free Zone 850,000 $90,000,000 $06 Foundry Commercial 4Q7 Airport/Doral Winn Dixie Distribution Center Bridgepoint Crossroads East FedEx Ground Distribution 96,345 $59,000,000 $6 CenterPoint 3Q7 420,989 $49,706,300 $8 Duke Realty 2Q7 Medley 236,975 $38,347,933 $62 MREIC 2Q7 South Dade FedEx 03,337 $37,250,000 $360 Lalezarian Developers 2Q7 Central 604 West 3st Place 372,36 $32,500,000 $87 COFE Properties 4Q7 Medley Bridgepoint Crossroads South 255,846 $30,207,800 $8 Duke Realty 2Q7 Medley 208 Avison Young - Florida, LLC. All rights reserved. E. & O.E.: The information contained herein was obtained from sources which we deem reliable and, while thought to be correct, is not guaranteed by Avison Young.

5 -Dade County Industrial Market Report Year-End 207 Industrial Submarket Map BROWARD COUNTY MIAMI-DADE COUNTY The Hammocks 997 West Country Walk Richmond West Tamiami 94 The Crossings Kendale Three 992 Miramar Gardens Doral Sweetwater Fountainebleau University Park 976 Medley Westchester 985 Sunset Olympia Heights Country Club Gardens 9 Opa-locka Westview Pinewood 953 West Little River 934 Gladeview Brownsville 44 Springs Int l 9 Airport Palmetto Bay 823 South Pinecrest West Park Ives Aventura 7 Estates Ojus Coral Gables Golden Glades 95 N. 909 Biscayne Park Shores North AA Key Biscayne Golden Sunny Isles Bal Harbour AA Surfside Contact Information Donna Abood Principal and Managing Director 2020 Ponce de Leon Blvd, Suite 200, FL donna.abood@ Michael T. Fay Principal and Managing Director 2020 Ponce de Leon Blvd, Suite 200, FL michael.fay@ Wayne Schuchts Principal 44 Brickell Ave, Suite 06, FL wayne.schuchts@ Ryan Sharpe Research Analyst 500 W Cypress Creek Rd, Suite 350 Fort Lauderdale, FL ryan.sharpe@ 994 South Heights Cutler Bay Goulds Princeton Naranja Leisure City Homestead Base SUBMARKETS Homestead MIAMI LAKES N DADE Florida City MEDLEY AIRPORT HIALEAH CENTRAL MIAMI 9336 KENDALL S DADE 208 Avison Young - Florida, LLC. All rights reserved. E. & O.E.: The information contained herein was obtained from sources which we deem reliable and, while thought to be correct, is not guaranteed by Avison Young.

Miami sets all-time high with $9.00 (IG) average asking rate

Miami Industrial, Q 17 Miami sets all-time high with $9. (IG) average asking rate Total Vacancy Lease Rate Net Absorption Completions 3.5% $9. PSF 57, SF 7, SF *Arrows indicate change from previous year.