The CoStar Industrial Report

Transcription

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

2 YEAR-END 2009 LOS ANGELES Table of Contents Table of Contents A Methodology B Terms & Definitions C Market Highlights & Overview CoStar Markets & Submarkets Employment & Tenant Analysis Employment & Unemployment Analysis Tenant Profiles Inventory & Development Analysis Construction Activity Map Inventory & Development Analysis Select Top Deliveries Select Top Under Construction Properties Figures at a Glance Figures at a Glance by Building Type & Market Figures at a Glance by Building Type & Submarket Historical Figures at a Glance Leasing Activity Analysis Leasing Activity Map Leasing Activity Analysis Select Top Lease Transactions Sales Activity Analysis Sales Activity Analysis Select Top Sales Transactions Select Land Sales Select Same Building Sales Analysis of Individual CoStar Markets Antelope Valley Market Carson/Rancho Domingz Market Central LA Market Commerce Area Market Conejo Valley Market Eastern SGV Market El Segundo/Hawthorne Market Gardena/110 Corridor Market Long Beach Area Market Lower SGV Market Lynwood/Paramount Market Mid Counties-LA Market Northwest SGV Market SCV/Lancaster/Palmdale Market SFV East Market SFV West Market Southwest SGV Market Torrance/Beach Cities Market Upper SGV Market Ventura County Market Vernon Area Market Westside Market 2010 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT A

3 LOS ANGELES YEAR-END 2009 Methodology The CoStar Industrial Report calculates Industrial statistics using CoStar Group's base of existing, under construction and under renovation Industrial buildings in each given metropolitan area. All Industrial building types are included, including warehouse, flex / research & development, distribution, manufacturing, industrial showroom, and service buildings, in both single-tenant and multi-tenant buildings, including owner-occupied buildings. CoStar Group's national database includes approximately 69.1 billion square feet of coverage in 2.8 million properties. All rental rates reported in the CoStar Industrial Report are calculated using the quoted rental rate for each property. For information on subscribing to CoStar s other products and services, please contact us at COSTAR, or visit our web site at Copyright 2010 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of the information contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness or completeness of the information. The publication is provided as is and CoStar expressly disclaims any guarantees, representations or warranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. CoStar Group, Inc. 2 Bethesda Metro Center Bethesda, MD USA (800) NASDAQ: CSGP B THE COSTAR INDUSTRIAL REPORT 2010 COSTAR GROUP, INC.

4 YEAR-END 2009 LOS ANGELES Terms & Definitions Availability Rate: The ratio of available space to total rentable space, calculated by dividing the total available square feet by the total rentable square feet. Available Space: The total amount of space that is currently being marketed as available for lease in a given time period. It includes any space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date. Build-to-Suit: A term describing a particular property, developed specifically for a certain tenant to occupy, with structural features, systems, or improvement work designed specifically for the needs of that tenant. A build-to-suit can be leased or owned by the tenant. In a leased build-to-suit, a tenant will usually have a long term lease on the space. Buyer: The individual, group, company, or entity that has purchased a commercial real estate asset. Cap Rate: Short for capitalization rate. The Cap Rate is a calculation that reflects the relationship between one year s net operating income and the current market value of a particular property. The Cap Rate is calculated by dividing the annual net operating income by the sales price (or asking sales price). CBD: Abbreviation for Central Business District. (See also: Central Business District) Central Business District: The designations of Central Business District (CBD) and Suburban refer to a particular geographic area within a metropolitan statistical area (MSA) describing the level of real estate development found there. The CBD is characterized by a high density, well organized core within the largest city of a given MSA. Class A: A classification used to describe buildings that generally qualify as extremely desirable investment-grade properties and command the highest rents or sale prices compared to other buildings in the same market. Such buildings are well located and provide efficient tenant layouts as well as high quality, and in some buildings, one-of-a-kind floor plans. They can be an architectural or historical landmark designed by prominent architects. These buildings contain a modern mechanical system, and have above-average maintenance and management as well as the best quality materials and workmanship in their trim and interior fittings. They are generally the most attractive and eagerly sought by investors willing to pay a premium for quality. Class B: A classification used to describe buildings that generally qualify as a more speculative investment, and as such, command lower rents or sale prices compared to Class A properties. Such buildings offer utilitarian space without special attractions, and have ordinary design, if new or fairly new; good to excellent design if an older non-landmark building. These buildings typically have average to good maintenance, management and tenants. They are less appealing to tenants than Class A properties, and may be deficient in a number of respects including floor plans, condition and facilities. They lack prestige and must depend chiefly on a lower price to attract tenants and investors. Class C: A classification used to describe buildings that generally qualify as no-frills, older buildings that offer basic space and command lower rents or sale prices compared to other buildings in the same market. Such buildings typically have below-average maintenance and management, and could have mixed or low tenant prestige, inferior elevators, and/or mechanical/electrical systems. These buildings lack prestige and must depend chiefly on a lower price to attract tenants and investors. Construction Starts: Buildings that began construction during a specific period of time. (See also: Deliveries) Contiguous Blocks of Space: Space within a building that is, or is able to be joined together into a single contiguous space. Deliveries: Buildings that complete construction during a specified period of time. In order for space to be considered delivered, a certificate of occupancy must have been issued for the property. Delivery Date: The date a building completes construction and receives a certificate of occupancy. Developer: The company, entity or individual that transforms raw land to improved property by use of labor, capital and entrepreneurial efforts. Direct Space: Space that is being offered for lease directly from the landlord or owner of a building, as opposed to space being offered in a building by another tenant (or broker of a tenant) trying to sublet a space that has already been leased. : The square footage of buildings that have received a certificate of occupancy and are able to be occupied by tenants. It does not include space in buildings that are either planned, under construction or under renovation. Flex Building: A type of building designed to be versatile, which may be used in combination with office (corporate headquarters), research and development, quasi-retail sales, and including but not limited to industrial, warehouse, and distribution uses. A typical flex building will be one or two stories with at least half of the rentable area being used as office space, have ceiling heights of 16 feet or less, and have some type of drive-in door, even though the door may be glassed in or sealed off. Full Service Rental Rate: Rental rates that include all operating expenses such as utilities, electricity, janitorial services, taxes and insurance. Gross Absorption: The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing Activity, which is the sum of all space leased over a certain period of time. Unless otherwise noted Gross Absorption includes direct and sublease space. Growth in Inventory: The change in size of the existing square footage in a given area over a given period of time, generally due to the construction of new buildings. Industrial Building: A type of building adapted for such uses as the assemblage, processing, and/or manufacturing of products from raw materials or fabricated parts. Additional uses include warehousing, distribution, and maintenance facilities. The primary purpose of the space is for storing, producing, assembling, or distributing product. Landlord Rep: (Landlord Representative) In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the owner/landlord is referred to as the Landlord Rep. Leased Space: All the space that has a financial lease obligation. It includes all leased space, regardless of whether the space is currently occupied by a tenant. Leased space also includes space being offered for sublease. Leasing Activity: The volume of square footage that is committed to and signed under a lease obligation for a specific building or market in a given period of time. It includes direct leases, subleases and renewals of existing leases. It also includes any pre-leasing activity in planned, under construction, or under renovation buildings. Market: Geographic boundaries that serve to delineate core areas that are competitive with each other and constitute a generally accepted primary competitive set of areas. Markets are buildingtype specific, and are non-overlapping contiguous geographic designations having a cumulative sum that matches the boundaries of the entire Region (See also: Region). Markets can be further subdivided into Submarkets. (See also: Submarkets) 2010 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT C

5 LOS ANGELES YEAR-END 2009 Multi-Tenant: Buildings that house more than one tenant at a given time. Usually, multi-tenant buildings were designed and built to accommodate many different floor plans and designs for different tenant needs. (See also: Tenancy). Net Absorption: The net change in occupied space over a given period of time. Unless otherwise noted Net Absorption includes direct and sublease space. Net Rental Rate: A rental rate that excludes certain expenses that a tenant could incur in occupying office space. Such expenses are expected to be paid directly by the tenant and may include janitorial costs, electricity, utilities, taxes, insurance and other related costs. New Space: Sometimes called first generation space, refers to space that has never been occupied and/or leased by a tenant. Occupied Space: Space that is physically occupied by a tenant. It does not include leased space that is not currently occupied by a tenant. Office Building: A type of commercial building used exclusively or primarily for office use (business), as opposed to manufacturing, warehousing, or other uses. Office buildings may sometimes have other associated uses within part of the building, i.e., retail sales, financial, or restaurant, usually on the ground floor. Owner: The company, entity, or individual that holds title on a given building or property. Planned/Proposed: The status of a building that has been announced for future development but not yet started construction. Preleased Space: The amount of space in a building that has been leased prior to its construction completion date, or certificate of occupancy date. Price/SF: Calculated by dividing the price of a building (either sales price or asking sales price) by the Rentable Building Area (RBA). Property Manager: The company and/or person responsible for the day-to-day operations of a building, such as cleaning, trash removal, etc. The property manager also makes sure that the various systems within the building, such as the elevators, HVAC, and electrical systems, are functioning properly. Quoted Rental Rate: The asking rate per square foot for a particular building or unit of space by a broker or property owner. Quoted rental rates may differ from the actual rates paid by tenants following the negotiation of all terms and conditions in a specific lease. RBA: Abbreviation for Rentable Building Area. (See also: Rentable Building Area) Region: Core areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Regions are further divided into market areas, called Markets. (See also: Markets) Relet Space: Sometimes called second generation or direct space, refers to existing space that has previously been occupied by another tenant. Rentable Building Area: (RBA) The total square footage of a building that can be occupied by, or assigned to a tenant for the purpose of determining a tenant s rental obligation. Generally RBA includes a percentage of common areas including all hallways, main lobbies, bathrooms, and telephone closets. Rental Rates: The annual costs of occupancy for a particular space quoted on a per square foot basis. Sales Price: The total dollar amount paid for a particular property at a particular point in time. Sales Volume: The sum of sales prices for a given group of buildings in a given time period. Seller: The individual, group, company, or entity that sells a particular commercial real estate asset. SF: Abbreviation for Square Feet. Single-Tenant: Buildings that are occupied, or intended to be occupied by a single tenant. (See also: Build-to-suit and Tenancy) Sublease Space: Space that has been leased by a tenant and is being offered for lease back to the market by the tenant with the lease obligation. Sublease space is sometimes referred to as sublet space. Submarkets: Specific geographic boundaries that serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted primary competitive set, or peer group. Submarkets are building type specific (office, industrial, retail, etc.), with distinct boundaries dependent on different factors relevant to each building type. Submarkets are non-overlapping, contiguous geographic designations having a cumulative sum that matches the boundaries of the Market they are located within (See also: Market). Suburban: The Suburban and Central Business District (CBD) designations refer to a particular geographic area within a metropolitan statistical area (MSA). Suburban is defined as including all office inventory not located in the CBD. (See also: CBD) Tenancy: A term used to indicate whether or not a building is occupied by multiple tenants (See also: Multi-tenant) or a single tenant. (See also: Single-tenant) Tenant Rep: Tenant Rep stands for Tenant Representative. In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the tenant is referred to as a Tenant Rep. Time On Market: A measure of how long a currently available space has been marketed for lease, regardless of whether it is vacant or occupied. Under Construction: The status of a building that is in the process of being developed, assembled, built or constructed. A building is considered to be under construction after it has begun construction and until it receives a certificate of occupancy. Rate: A measurement expressed as a percentage of the total amount of physically vacant space divided by the total amount of existing inventory. Under construction space generally is not included in vacancy calculations. Vacant Space: Space that is not currently occupied by a tenant, regardless of any lease obligation that may be on the space. Vacant space could be space that is either available or not available. For example, sublease space that is currently being paid for by a tenant but not occupied by that tenant, would be considered vacant space. Likewise, space that has been leased but not yet occupied because of finish work being done, would also be considered vacant space. Weighted Average Rental Rate: Rental rates that are calculated by factoring in, or weighting, the square footage associated with each particular rental rate. This has the effect of causing rental rates on larger spaces to affect the average more than that of smaller spaces. The weighted average rental rate is calculated by taking the ratio of the square footage associated with the rental rate on each individual available space to the square footage associated with rental rates on all available spaces, multiplying the rental rate by that ratio, and then adding together all the resulting numbers. Unless specifically specified otherwise, rental rate averages include both Direct and Sublet available spaces. Year Built: The year in which a building completed construction and was issued a certificate of occupancy. YTD: Abbreviation for Year-to-Date. Describes statistics that are cumulative from the beginning of a calendar year through whatever time period is being studied. D THE COSTAR INDUSTRIAL REPORT 2010 COSTAR GROUP, INC.

6 OVERVIEW YEAR-END 2009 LOS ANGELES Los Angeles s Increases to 4.9% Net Absorption Positive 151,949 SF in the Quarter The Los Angeles Industrial market ended the fourth quarter 2009 with a vacancy rate of 4.9%. The vacancy rate was up over the previous quarter, with net absorption totaling positive 151,949 square feet in the fourth quarter. Vacant sublease space increased in the quarter, ending the quarter at 5,211,882 square feet. Rental rates ended the fourth quarter at $7.45, a decrease over the previous quarter. A total of 16 buildings delivered to the market in the quarter totaling 717,222 square feet, with 206,856 square feet still under construction at the end of the quarter. Absorption Net absorption for the overall Los Angeles Industrial market was positive 151,949 square feet in the fourth quarter That compares to negative (1,306,613) square feet in the third quarter 2009, negative (3,860,528) square feet in the second quarter 2009, and negative (4,355,910) square feet in the first quarter Tenants moving into large blocks of space in 2009 include: Unical Aviation, Inc. moving into 467,119 square feet at Circuit City, Tatung Company of America moving into 293,800 square feet at 2000 E Carson St 1, and Saddle Creek Corporation moving into 268,536 square feet at Carmenita Rd. The Flex building market recorded net absorption of positive 88,758 square feet in the fourth quarter 2009, compared to negative (65,575) square feet in the third quarter 2009, negative (273,003) in the second quarter 2009, and negative (465,273) in the first quarter The Warehouse building market recorded net absorption of positive 63,191 square feet in the fourth quarter 2009 compared to negative (1,241,038) square feet in the third quarter 2009, negative (3,587,525) in the second quarter 2009, and negative (3,890,637) in the first quarter The Industrial vacancy rate in the Los Angeles market area increased to 4.9% at the end of the fourth quarter The vacancy rate was 4.8% at the end of the third quarter 2009, 4.7% at the end of the second quarter 2009, and 4.2% at the end of the first quarter Flex projects reported a vacancy rate of 6.6% at the end of the fourth quarter 2009, 6.7% at the end of the third quarter 2009, 6.6% at the end of the second quarter 2009, and 6.1% at the end of the first quarter Warehouse projects reported a vacancy rate of 4.7% at the end of the fourth quarter 2009, 4.7% at the end of third quarter 2009, 4.5% at the end of the second quarter 2009, and 4.1% at the end of the first quarter Largest Lease Signings The largest lease signings occurring in 2009 included: the 467,119-square-foot deal signed by Unical Aviation, Inc. at 680 S Lemon Ave in the Lower SGV market; the 400,000-square-foot lease signed by APL Limited. at Brea Canyon Rd in the Lower SGV market; and the 315,000-square-foot lease signed by Pepsi at 700 & 709 Science Dr in the Conejo Valley market. Sublease The amount of vacant sublease space in the Los Angeles market increased to 5,211,882 square feet by the end of the fourth quarter 2009, from 5,051,961 square feet at the end of the Rates by Building Type % Flex Warehouse Total Market 10% 8% Rate 6% 4% 2% 0% COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 1

7 LOS ANGELES YEAR-END 2009 OVERVIEW third quarter There was 4,941,730 square feet vacant at the end of the second quarter 2009 and 4,694,060 square feet at the end of the first quarter Los Angeles s Flex projects reported vacant sublease space of 395,564 square feet at the end of fourth quarter 2009, up from the 335,248 square feet reported at the end of the third quarter There were 347,753 square feet of sublease space vacant at the end of the second quarter 2009, and 391,780 square feet at the end of the first quarter Warehouse projects reported increased vacant sublease space from the third quarter 2009 to the fourth quarter Sublease vacancy went from 4,716,713 square feet to 4,816,318 square feet during that time. There was 4,593,977 square feet at the end of the second quarter 2009, and 4,302,280 square feet at the end of the first quarter Rental Rates The average quoted asking rental rate for available Industrial space was $7.45 per square foot per year at the end of the fourth quarter 2009 in the Los Angeles market area. This represented a 4.6% decrease in quoted rental rates from the end of the third quarter 2009, when rents were reported at $7.81 per square foot. The average quoted rate within the Flex sector was $15.14 per square foot at the end of the fourth quarter 2009, while Warehouse rates stood at $7.01. At the end of the third quarter 2009, Flex rates were $15.23 per square foot, and Warehouse rates were $7.40. Deliveries and Construction During the fourth quarter 2009, 16 buildings totaling 717,222 square feet were completed in the Los Angeles market area. This compares to seven buildings totaling 201,622 square feet that were completed in the third quarter 2009, 16 buildings totaling 953,516 square feet completed in the second quarter 2009, and 1,060,975 square feet in 28 buildings completed in the first quarter U.S. Comparison Past 10 Quarters Rate % 6.0% 4.0% Los Angeles United States There were 206,856 square feet of Industrial space under construction at the end of the fourth quarter Some of the notable 2009 deliveries include: 5959 Randolph St, a 402,507-square-foot facility that delivered in second quarter 2009 and is now 0% occupied, and Dynamic Spectrum - Bldg 4, a 155,787-square-foot building that delivered in first quarter 2009 and is now 0% occupied. The largest projects underway at the end of fourth quarter 2009 were Canord Industrial Park - Bldg 1, a 27,716-square-foot building with 0% of its space pre-leased, and Gingham Ave & E Avenue K-6, a 24,136-square-foot facility that is 0% pre-leased. Inventory Total Industrial inventory in the Los Angeles market area amounted to 1,075,737,671 square feet in 36,342 buildings as of the end of the fourth quarter The Flex sector consisted of 73,238,606 square feet in 3,023 projects. The Warehouse sector consisted of 1,002,499,065 square feet in 33,319 buildings. Within the Industrial market there were 4,818 owner-occupied buildings accounting for 194,028,601 square feet of Industrial space. Sales Activity Tallying industrial building sales of 15,000 square feet or larger, Los Angeles industrial sales figures fell during the third quarter 2009 in terms of dollar volume compared to the second quarter of In the third quarter, 43 industrial transactions closed with a total volume of $169,264,759. The 43 buildings totaled 2,256,401 square feet and the average price per square foot equated to $75.02 per square foot. That compares to 43 transactions totaling $171,072,768 in the second quarter. The total square footage was 2,002,993 for an average price per square foot of $ Total year-to-date industrial building sales activity in 2009 is down compared to the previous year. In the first nine months of 2009, the market saw 109 industrial sales transactions with a total volume of $440,741,850. The price per square foot has averaged $84.23 this year. In the first nine months of 2008, the market posted 229 transactions with a total volume of $1,574,149,827. The price per square foot averaged $ Cap rates have been higher in 2009, averaging 7.10%, compared to the first nine months of last year when they averaged 5.98%. One of the largest transactions that has occurred within the last four quarters in the Los Angeles market is the sale of 771 Watson Center Rd - Bldg 114 in Carson. This 266,780-squarefoot industrial building sold for $45,000,000, or $ per square foot. The property sold on 10/15/2008, at a 4.80% cap rate q q q q q 2009 Reports compiled by: Paula Bonner and Pharoeth Em, CoStar Research Manager. Source: CoStar Property 2 THE COSTAR INDUSTRIAL REPORT 2010 COSTAR GROUP, INC.

8 MARKETS YEAR-END 2009 LOS ANGELES CoStar Markets & Submarkets In analyzing metropolitan areas in the U.S., CoStar has developed geographic designations to help group properties together, called Regions, Markets and Submarkets. Regions 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. Regions are then divided into Markets, 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. Markets 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 2010 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 3

9 LOS ANGELES YEAR-END 2009 EMPLOYMENT AND TENANT Total Employment by Industry Percent of Total Employment by Industry Total Employment Growth Total Number of Jobs Added Per Year 3% 0% 10% Natural Resources & Mining Construction 3.0% Los Angeles U.S. Average 4% 15% 10% 20% 6% 5% Manufacturing Trade, Transportation & Utilities Information Financial Activities Professional & Business Services Education & Health Services Leisure & Hospitality Percent Growth 1.0% -1.0% % Other Services -4.0% 13% 14% Government -5.0% Source: Department of Labor, Bureau of Labor Statistics Source: Department of Labor, Bureau of Labor Statistics Total Employment Growth Cumulative Growth in Jobs Over the Past 5 Years Market Employment Growth Inventory Growth Difference Atlanta % 13.80% % Chicago % 9.60% % Dallas/Ft Worth % 14.00% % Denver % 9.60% % Detroit % 5.40% % Houston % 16.80% % Inland Empire (California) % 48.20% % Los Angeles % 2.60% % Northern New Jersey % 4.40% % Pittsburgh % 5.80% % Source: Department of Labor, Bureau of Labor Statistics Historical Unemployment Rates Industrial* Employment Growth Number of Industrial* Jobs Added Per Year Percent Growth Los Angeles U.S. Average 1.0% -1.0% % -4.0% -5.0% -6.0% -7.0% -8.0% Source: Department of Labor, Bureau of Labor Statistics. * Industrial employment is defined as jobs in the Manufacturing, and Trade, Transportation & Utilities industries 14.0% Los Angeles U.S. Average 1 Percent Unemployment 1 8.0% 6.0% 4.0% q q q q q q q q q q q q q q q q q q q q q q Source: Department of Labor, Bureau of Labor Statistics 4 THE COSTAR INDUSTRIAL REPORT 2010 COSTAR GROUP, INC.

10 EMPLOYMENT AND TENANT YEAR-END 2009 LOS ANGELES Flex Tenants by Size Range Based on Total Number of Tenants Warehouse Tenants by Size Range Based on Total Number of Tenants 75,000 SF & Up 2.6% 75,000 SF & Up 11.9% 50,000-74,999 SF 3.4% 50,000-74,999 SF 7.9% 25,000-49,999 SF 6.0% 25,000-49,999 SF 13.7% 10,000-24,999 SF 15.2% 10,000-24,999 SF 19.9% 5,000-9,999 SF 17.5% 5,000-9,999 SF 15.3% 2,500-4,999 SF 20.6% 2,500-4,999 SF 11.7% Up to 2,499 SF 34.7% Up to 2,499 SF 19.6% 0% 5% 10% 15% 20% 25% 30% 35% 40% Percentage of Tenants 0% 5% 10% 15% 20% 25% Percentage of Tenants Source: CoStar Tenant Flex Tenants by Lease Expiration Based on Total Square Footage of Tenants Source: CoStar Tenant Warehouse Lease Expiration Based on Total Square Footage of Tenants % % % % % % % % % % % % 0% 5% 10% 15% 20% 25% Percentage of Tenants 0% 5% 10% 15% 20% Percentage of Tenants 2010 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 5

11 LOS ANGELES YEAR-END 2009 INVENTORY & DEVELOPMENT Construction Highlights in Select CoStar Markets Color Coded by Under Construction Square Footage as a Percentage of 6 THE COSTAR INDUSTRIAL REPORT 2010 COSTAR GROUP, INC.

12 INVENTORY & DEVELOPMENT YEAR-END 2009 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 Ventura County Ind 5 63,321 6, % 23,339 12,664 SFV West Ind 3 45, ,286 15,034 Lower SGV Ind 2 29, % 56,220 14,584 SFV East Ind 3 27, ,689 9,006 Antelope Valley Ind 1 24, ,607 24,136 El Segundo/Hawthorne Ind 4 18, ,798 4,528 Conejo Valley Ind ,845 0 Eastern SGV Ind ,217 0 Gardena/110 Corridor Ind ,705 0 Long Beach Area Ind ,094 0 All Other ,166 0 Totals ,856 6, % 29,600 11,492 Recent Deliveries Leased & Un-Leased SF in Deliveries Since 2005 Future Deliveries Preleased & Un-Leased SF in Properties Scheduled to Deliver 12.0 Leased Un-Leased 180 Preleased Un-Leased Millions of SF Thousands of SF T q COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 7

13 LOS ANGELES YEAR-END 2009 INVENTORY & DEVELOPMENT Historical Construction Starts & Deliveries Square Footage Per Quarter Starting and Completing Construction Construction Starts Deliveries Millions of SF q q q q 2007 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 , , % $ , ,268 50,000 SF - 99,999 SF 18 1,177, , % $ ,895 1,041, ,000 SF - 249,999 SF 4 564, , % $ , ,000 SF - 499,999 SF 1 402,507 0 $ ,507 >= 500,000 SF $ Recent Development by Tenancy Comparison Based on RBA Developed for Single & Multi-Tenant Use Based on Total RBA 2009 Deliveries Currently Under Construction By Building Type By Tenancy Type 7% 4% 7% 50% 50% 93% 96% 93% Multi Single Multi Single Flex Warehouse Multi Single 8 THE COSTAR INDUSTRIAL REPORT 2010 COSTAR GROUP, INC.

14 INVENTORY & DEVELOPMENT YEAR-END 2009 LOS ANGELES 2010 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 9

15 LOS ANGELES YEAR-END 2009 INVENTORY & DEVELOPMENT 10 THE COSTAR INDUSTRIAL REPORT 2010 COSTAR GROUP, INC.

16 FIGURES AT A GLANCE YEAR-END 2009 LOS ANGELES Flex Market Statistics Year-End 2009 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Antelope Valley Ind 69 1,140, , , % (4,511) 0 0 $11.23 Carson/Rancho Domingz Ind 50 2,124, , , % (5,176) 0 0 $11.74 Central LA Ind 363 7,276, , , % (11) 7,841 0 $19.10 Commerce Area Ind ,456 12,752 12, % 17, $12.66 Conejo Valley Ind 170 6,006, , , % (98,443) 83,060 0 $15.97 Eastern SGV Ind 56 1,687, , , % (126,454) 0 0 $11.86 El Segundo/Hawthorne Ind 65 2,422,516 80,859 80, % (20,284) 0 0 $12.21 Gardena/110 Corridor Ind ,551 45,154 45, % (6,706) 0 0 $8.50 Long Beach Area Ind 105 2,285,961 40,204 40, % 103, $12.32 Lower SGV Ind 63 2,269, , , % 13,428 55,510 29,168 $15.04 Lynwood/Paramount Ind ,126 25,717 25, % (13,617) 0 0 $7.48 Mid Counties-LA Ind 192 5,964, , , % (66,272) 0 0 $10.84 Northwest SGV Ind 105 2,401, , , % 50,330 40,165 0 $14.11 SCV/Lancaster/Palmdale Ind 108 3,104, , , % (58,022) 0 0 $15.78 SFV East Ind 405 6,901, , , % (28,341) 0 0 $14.80 SFV West Ind 392 9,750, , , % 35, $13.81 Southwest SGV Ind ,489 6,078 6, % (4,938) 0 0 $11.29 Torrance/Beach Cities Ind 184 5,212, , , % (183,922) 0 0 $14.50 Upper SGV Ind 114 2,465, , , % (43,517) 0 0 $9.39 Ventura County Ind 84 2,787, , , % (144,875) 0 0 $10.30 Vernon Area Ind ,094 18,500 18, % (6,500) 0 0 $0.00 Westside Ind 340 6,745, , , % (124,001) 0 0 $26.10 Totals 3,023 73,238,606 4,430,527 4,826, % (715,093) 186,576 29,168 $15.14 Warehouse Market Statistics Year-End 2009 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Antelope Valley Ind 267 7,799, , , % (68,158) 63,090 24,136 $6.61 Carson/Rancho Domingz Ind 1,296 81,517,517 4,060,468 4,651, % (1,154,222) 270,117 0 $6.42 Central LA Ind 4, ,051,608 3,810,571 3,852, % (404,903) 464,791 0 $8.03 Commerce Area Ind 1,672 81,453,141 3,167,016 4,042, % (233,023) 402,507 0 $5.76 Conejo Valley Ind ,934,827 1,026,672 1,208, % (371,760) 58,508 0 $8.46 Eastern SGV Ind ,754,965 1,821,144 2,037, % (708,546) 0 0 $6.03 El Segundo/Hawthorne Ind ,568, ,615 1,103, % 55, ,112 $11.46 Gardena/110 Corridor Ind 1,651 37,440,249 1,399,783 1,532, % (69,483) 56,065 0 $6.51 Long Beach Area Ind 1,516 30,285,795 2,195,943 2,216, % (198,379) 6,572 0 $7.83 Lower SGV Ind 1,479 84,422,293 4,354,636 5,397, % (1,247,663) 563,359 0 $5.95 Lynwood/Paramount Ind ,465, , , % (51,370) 0 0 $6.63 Mid Counties-LA Ind 2,413 93,527,954 4,581,832 4,868, % (1,376,770) 106,001 0 $6.14 Northwest SGV Ind 1,060 22,348, , , % (5,859) 0 0 $7.71 SCV/Lancaster/Palmdale Ind ,666,479 1,045,605 1,084, % (218,739) 42,951 0 $6.77 SFV East Ind 4,577 86,207,866 2,791,264 2,917, % (1,018,124) 41,001 27,018 $9.08 SFV West Ind 1,649 39,817,823 1,101,541 1,280, % 83, ,240 45,101 $8.19 Southwest SGV Ind 735 9,457, , , % (943) 0 0 $7.28 Torrance/Beach Cities Ind ,472,964 1,098,655 1,173, % 309, ,647 0 $7.12 Upper SGV Ind 1,029 24,681,356 1,175,393 1,284, % (162,820) 38,116 0 $6.91 Ventura County Ind 2,091 47,974,029 2,063,393 2,303, % (555,938) 256,739 63,321 $7.35 Vernon Area Ind 2,277 89,303,227 3,155,133 3,387, % (1,192,372) 11,055 0 $5.93 Westside Ind ,347, ,693 1,055, % (64,555) 0 0 $13.76 Totals 33,319 1,002,499,065 42,641,096 47,457, % (8,656,009) 2,746, ,688 $ COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 11

17 LOS ANGELES YEAR-END 2009 FIGURES AT A GLANCE Total Industrial Market Statistics Year-End 2009 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Antelope Valley Ind 336 8,940, , , % (72,669) 63,090 24,136 $6.73 Carson/Rancho Domingz Ind 1,346 83,641,956 4,446,092 5,039, % (1,159,398) 270,117 0 $6.60 Central LA Ind 4, ,328,545 4,037,593 4,120, % (404,914) 472,632 0 $8.83 Commerce Area Ind 1,723 82,393,597 3,179,768 4,055, % (215,199) 402,507 0 $5.81 Conejo Valley Ind ,941,000 1,447,083 1,854, % (470,203) 141,568 0 $9.88 Eastern SGV Ind 1,045 28,442,023 1,991,771 2,207, % (835,000) 0 0 $6.38 El Segundo/Hawthorne Ind ,991,363 1,031,474 1,184, % 34, ,112 $11.53 Gardena/110 Corridor Ind 1,693 38,439,800 1,444,937 1,577, % (76,189) 56,065 0 $6.55 Long Beach Area Ind 1,621 32,571,756 2,236,147 2,256, % (95,048) 6,572 0 $7.96 Lower SGV Ind 1,542 86,691,788 4,462,451 5,505, % (1,234,235) 618,869 29,168 $6.00 Lynwood/Paramount Ind ,617, , , % (64,987) 0 0 $6.64 Mid Counties-LA Ind 2,605 99,492,008 4,937,819 5,225, % (1,443,042) 106,001 0 $6.32 Northwest SGV Ind 1,165 24,749, , , % 44,471 40,165 0 $8.29 SCV/Lancaster/Palmdale Ind ,771,141 1,442,781 1,481, % (276,761) 42,951 0 $7.46 SFV East Ind 4,982 93,109,087 3,062,954 3,231, % (1,046,465) 41,001 27,018 $9.53 SFV West Ind 2,041 49,568,676 1,518,609 1,748, % 118, ,240 45,101 $9.06 Southwest SGV Ind 755 9,688, , , % (5,881) 0 0 $7.32 Torrance/Beach Cities Ind 1,038 39,685,614 1,487,547 1,575, % 125, ,647 0 $7.79 Upper SGV Ind 1,143 27,146,949 1,303,481 1,413, % (206,337) 38,116 0 $7.01 Ventura County Ind 2,175 50,761,323 2,440,516 2,684, % (700,813) 256,739 63,321 $7.56 Vernon Area Ind 2,311 89,672,321 3,173,633 3,406, % (1,198,872) 11,055 0 $5.93 Westside Ind 1,130 23,092,780 1,183,329 1,381, % (188,556) 0 0 $17.41 Totals 36,342 1,075,737,671 47,071,623 52,283, % (9,371,102) 2,933, ,856 $ THE COSTAR INDUSTRIAL REPORT 2010 COSTAR GROUP, INC.

18 FIGURES AT A GLANCE YEAR-END 2009 LOS ANGELES Flex Submarket Statistics Year-End 2009 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Agoura/Wlake V/T Oaks 143 5,112, , , % (68,656) 0 0 $15.90 Alhambra Ind ,390 79,356 79, % (3,983) 40,165 0 $13.48 Antelope Valley Ind 69 1,140, , , % (4,511) 0 0 $11.23 Arcadia/Sierra Madre Ind ,715 4,427 4, % (4,427) 0 0 $11.40 Azusa Ind 30 1,097,421 18,956 18, % (1,680) 0 0 $13.09 Baldwin Park Ind ,447 43,028 43, % 3, $9.17 Beach Cities Ind ,452 30,493 30, % (1,844) 0 0 $13.04 Burbank Ind 149 2,431, , , % (59,853) 0 0 $19.56 Canoga Park Ind ,188 35,693 35, % (21,774) 0 0 $13.86 Carson Central Ind , , , % 9, $11.65 Carson North Ind 3 357, , $13.20 Carson South Ind ,859 59,425 62, % (36,750) 0 0 $11.03 Central Los Angeles Ind 363 7,276, , , % (11) 7,841 0 $19.10 Central Ventura Ind 27 1,265, , , % (102,050) 0 0 $8.63 Cerritos Ind , , , % (5,047) 0 0 $12.25 Chatsworth Ind 174 4,582, , , % 128, $13.47 City of Industry Cent Ind 7 112,389 9,250 9, % (7,490) 0 0 $17.80 City of Industry East Ind ,279 16,144 16, % 9, $15.89 City of Industry West Ind 3 620,613 15,177 15, % $0.00 Claremont Ind 5 121,337 32,316 32, % (27,262) 0 0 $9.21 Commerce Ind ,273 4,160 4, % 20, $11.34 Compton East Ind $0.00 Compton West Ind 6 138,126 14,455 14, % (11,835) 0 0 $9.92 Covina Ind ,380 11,571 11, % 7, $6.12 Diamond Bar Ind $0.00 Downey Ind 13 1,673, $0.00 Duarte Ind 3 28,842 2,215 2, % (2,215) 0 0 $17.40 East San Ferndo Vlly Ind 91 1,837,853 67,079 97, % 21, $11.17 El Monte Ind ,873 23,299 23, % 49, $14.83 El Segundo Ind 28 1,549,375 39,000 39, % (10,000) 0 0 $12.12 Encino Ind $0.00 Gardena Central Ind 9 186,529 4,090 4, % $12.11 Gardena East Ind 1 8, $0.00 Gardena NE Ind $0.00 Gardena North Central Ind 9 238,750 2,040 2, % (700) 0 0 $6.33 Gardena North Ind 8 199,582 19,954 19,954 1 (4,000) 0 0 $7.80 Gardena NW Ind 2 30, $0.00 Gardena South Ind ,842 19,070 19, % (2,270) 0 0 $10.96 Glendale Ind ,528 16,397 16, % (6,522) 0 0 $13.77 Glendora Ind , $0.00 Hawthorne Ind ,319 8,185 8, % $11.46 Industry/Hacienda Blv Ind ,785 11,618 11, % $0.00 Industry/La Puente Ind 2 48,675 1,950 1, % (1,950) 0 0 $0.00 Industry/Rowland St Ind ,836 3,490 3, % 2, $9.14 Inglewood Ind ,296 33,674 33, % (11,234) 0 0 $13.17 Irwindale Ind 4 212,019 52,318 52, % (50,802) 0 0 $ COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 13

19 LOS ANGELES YEAR-END 2009 FIGURES AT A GLANCE Flex Submarket Statistics Year-End 2009 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates La Mirada Ind ,900 14,700 14, % (749) 0 0 $11.91 La Verne Ind 6 101,550 9,989 9, % (2,606) 0 0 $10.68 Lakewood Ind 2 17, $0.00 Lawndale Ind 7 48, $12.42 Long Beach North Ind ,761 36,352 36, % (4,461) 0 0 $11.74 Long Beach SE Ind , % 84, $13.89 Long Beach SW Ind 9 87, $0.00 Lynwood Ind 2 26,552 9,000 9, % $0.00 Monrovia Ind ,572 4,430 4, % 6, $14.76 Montebello/Whittier Ind ,183 8,592 8, % (2,767) 0 0 $15.08 Moorpark/Simi Val Ind , , , % (29,787) 83,060 0 $16.13 North Hollywood Ind , $15.71 Northridge Ind 148 3,938,781 98, , % (66,178) 0 0 $13.71 Norwalk/Bellflower Ind ,228 3,500 3, % (1,700) 0 0 $12.00 Oxnard/Pt Hueneme Ind ,814 43,564 43, % (41,179) 0 0 $20.64 Paramount North Ind 4 51, $0.00 Paramount South Ind 5 73,863 16,717 16, % (13,617) 0 0 $7.48 Pasadena Ind 88 1,414,805 52,236 52, % 16, $14.28 Pomona North Ind 2 70,105 66,776 66, % (66,776) 0 0 $6.00 Pomona SE Ind ,771 6,194 6, % (1,590) 0 0 $13.07 Pomona SW Ind 5 121, $19.10 Rancho Dominguez Ind ,903 91,680 91, % (16,482) 0 0 $11.25 Rosemead Ind 1 180, $0.00 San Dimas Ind ,570 55,352 55, % (28,535) 0 0 $16.01 San Gabriel Ind 4 37, $0.00 San Pedro Ind 5 35, $16.08 Santa Clarita/Lancstr Ind 108 3,104, , , % (58,022) 0 0 $15.78 Santa Fe Springs Ind 134 2,906, , , % (58,776) 0 0 $8.72 Signal Hill Ind 39 1,010,110 3,252 3, % 23, $12.30 South El Monte NE Ind 10 95,694 4,665 4, % (4,665) 0 0 $9.93 South El Monte NW Ind 2 6, $0.00 South El Monte SE Ind 8 127,910 1,413 1, % (273) 0 0 $12.12 Tarzana Ind 2 20,540 8,350 8, % $9.00 Temple City Ind 3 24,019 1,250 1, % 2, $15.24 Topanga/Malibu Ind $0.00 Torrance Central Ind ,961 9,000 9, % $12.83 Torrance NE Ind 43 1,540,874 99, , % (60,625) 0 0 $17.58 Torrance NW Ind 77 1,910, , , % (78,307) 0 0 $13.57 Torrance South Ind ,059 58,539 62, % (43,466) 0 0 $13.34 Ventura Ind ,201 44,179 47, % (1,646) 0 0 $14.89 Vernon Ind ,094 18,500 18, % (6,500) 0 0 $0.00 W San Fern Val Ind $0.00 West Covina/Walnut Ind ,918 50,186 50, % 9,524 55,510 29,168 $20.33 Westside Ind 340 6,745, , , % (124,001) 0 0 $26.10 Wilmington Ind 5 50, $0.00 Woodland Hills Ind ,431 23,911 23, % (4,500) 0 0 $15.42 Totals 3,023 73,238,606 4,430,527 4,826, % (715,093) 186,576 29,168 $ THE COSTAR INDUSTRIAL REPORT 2010 COSTAR GROUP, INC.

20 FIGURES AT A GLANCE YEAR-END 2009 LOS ANGELES Warehouse Submarket Statistics Year-End 2009 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Agoura/Wlake V/T Oaks 280 8,406, , , % (142,386) 0 0 $10.14 Alhambra Ind 227 4,752, , , % 20, $6.89 Antelope Valley Ind 267 7,799, , , % (68,158) 63,090 24,136 $6.61 Arcadia/Sierra Madre Ind 93 1,354,051 46,341 46, % (34,423) 0 0 $12.34 Azusa Ind 284 8,128, , , % (53,049) 0 0 $6.37 Baldwin Park Ind 239 3,871, , , % (2,873) 38,116 0 $8.05 Beach Cities Ind 58 2,289,500 4,050 4, % 35, $9.14 Burbank Ind 1,062 17,773, , , % (336,662) 6,665 0 $9.89 Canoga Park Ind 317 5,802, , , % 13, ,101 $8.38 Carson Central Ind ,100, , , % (322,185) 148,725 0 $6.39 Carson North Ind 136 6,449, , , % 10,222 55,720 0 $6.41 Carson South Ind ,477, , , % 95, $6.83 Central Los Angeles Ind 4, ,051,608 3,810,571 3,852, % (404,903) 464,791 0 $8.03 Central Ventura Ind ,214, , , % (258,427) 82,310 48,877 $7.15 Cerritos Ind ,559,016 1,057,752 1,289, % (107,066) 0 0 $5.47 Chatsworth Ind ,769, , , % 173, ,240 0 $7.83 City of Industry Cent Ind ,602, , , % 60, $7.57 City of Industry East Ind ,658,371 1,753,980 2,285, % (839,665) 318,092 0 $5.26 City of Industry West Ind 71 5,315, , , % (58,495) 0 0 $5.90 Claremont Ind 36 1,337,145 12,546 17, % (5,606) 0 0 $9.67 Commerce Ind ,977,681 2,485,781 3,057, % (163,762) 402,507 0 $5.67 Compton East Ind 125 3,078,518 70,458 70, % 24, $11.20 Compton West Ind ,614,555 1,442,042 1,661, % (834,456) 0 0 $5.60 Covina Ind 201 2,807,611 76,929 76, % (4,715) 0 0 $8.00 Diamond Bar Ind 2 30, , $8.16 Downey Ind 272 7,642, , , % (41,935) 0 0 $7.10 Duarte Ind 51 1,156,938 27,387 27, % 21, $8.69 East San Ferndo Vlly Ind 2,304 47,589,336 1,487,227 1,496, % (471,730) 34,336 20,580 $8.58 El Monte Ind 301 8,307, , , % 28, $7.67 El Segundo Ind ,038, , , % 30, ,112 $19.17 Encino Ind 1 2, $0.00 Gardena Central Ind ,291, , , % 100,521 14,968 0 $6.57 Gardena East Ind 193 6,619, , , % (286,917) 0 0 $6.43 Gardena NE Ind 246 6,461, , , % 49, $6.05 Gardena North Central Ind 161 4,225, , , % 50, $6.34 Gardena North Ind 339 4,655, , , % 10,682 41,097 0 $7.28 Gardena NW Ind , $0.00 Gardena South Ind 211 5,014, , , % 6, $6.66 Glendale Ind 629 9,723, , , % (99,887) 0 6,438 $10.24 Glendora Ind , , , % (77,271) 0 0 $7.49 Hawthorne Ind 286 9,308, , , % (73,655) 0 0 $8.82 Industry/Hacienda Blv Ind ,131, , , % 94, ,907 0 $6.36 Industry/La Puente Ind 149 9,365, , , % (391,391) 0 0 $5.59 Industry/Rowland St Ind ,689, , , % (175,592) 0 0 $6.31 Inglewood Ind 290 4,765, , , % 97, $10.50 Irwindale Ind 206 7,973, , , % (46,010) 0 0 $ COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 15

21 LOS ANGELES YEAR-END 2009 FIGURES AT A GLANCE Warehouse Submarket Statistics Year-End 2009 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates La Mirada Ind ,214, , , % 122, $6.28 La Verne Ind 149 3,189, , , % (16,515) 0 0 $6.95 Lakewood Ind ,334 3,700 3, % (3,700) 0 0 $7.35 Lawndale Ind ,070 18,500 18, % $9.63 Long Beach North Ind 258 6,446, , , % (218,117) 0 0 $8.67 Long Beach SE Ind 299 6,139,692 1,377,337 1,398, % 12, $7.42 Long Beach SW Ind 452 5,235, , , % 6, $7.18 Lynwood Ind 196 7,269,138 77, , % (94,685) 0 0 $5.04 Monrovia Ind 273 4,762, , , % (23,996) 0 0 $8.49 Montebello/Whittier Ind ,475, , , % (69,261) 0 0 $5.99 Moorpark/Simi Val Ind ,528, , , % (229,374) 58,508 0 $7.91 North Hollywood Ind 411 8,059, , , % (90,014) 0 0 $8.19 Northridge Ind ,737, , , % (65,523) 0 0 $8.57 Norwalk/Bellflower Ind 176 7,220, , , % (248,540) 0 0 $6.91 Oxnard/Pt Hueneme Ind ,145,614 1,027,632 1,203, % (247,057) 174,429 14,444 $7.23 Paramount North Ind 99 3,224,899 97,771 98, % (25,027) 0 0 $6.59 Paramount South Ind 247 4,971, , , % 68, $7.44 Pasadena Ind 171 3,062, , , % (19,831) 0 0 $10.71 Pomona North Ind 145 3,065, , , % (68,748) 0 0 $6.91 Pomona SE Ind ,768,106 1,017,391 1,184, % (519,106) 0 0 $5.25 Pomona SW Ind 162 4,734, , , % 48, $6.51 Rancho Dominguez Ind ,796, ,550 1,109, % (127,760) 65,672 0 $6.52 Rosemead Ind 56 1,495, , $5.95 San Dimas Ind 164 3,628, , , % (152,979) 0 0 $7.90 San Gabriel Ind 87 1,321,703 48,934 48, % (4,838) 0 0 $7.45 San Pedro Ind 38 1,785, , $8.28 Santa Clarita/Lancstr Ind ,666,479 1,045,605 1,084, % (218,739) 42,951 0 $6.77 Santa Fe Springs Ind 1,457 50,891,446 2,408,583 2,448, % (1,101,702) 106,001 0 $6.19 Signal Hill Ind 280 4,966, , , % 57,077 6,572 0 $10.06 South El Monte NE Ind 417 5,362, , , % 22, $7.24 South El Monte NW Ind 187 2,191,416 68,047 68, % 10, $7.44 South El Monte SE Ind 131 1,903,826 65,369 65, % (33,501) 0 0 $7.20 Tarzana Ind ,609 19,467 19, % (16,531) 0 0 $12.80 Temple City Ind ,807 3,500 3, % 7, $9.52 Topanga/Malibu Ind 2 40, $0.00 Torrance Central Ind 147 3,334, , , % 164, ,647 0 $8.27 Torrance NE Ind ,310, , , % 217, $6.74 Torrance NW Ind 149 6,881, , , % (86,650) 0 0 $6.62 Torrance South Ind 255 7,656, , , % (21,269) 0 0 $6.98 Ventura Ind ,613, , , % (50,454) 0 0 $8.15 Vernon Ind 2,277 89,303,227 3,155,133 3,387, % (1,192,372) 11,055 0 $5.93 W San Fern Val Ind 1 42, $0.00 West Covina/Walnut Ind 152 4,659, , , % 62,974 41,360 0 $9.04 Westside Ind ,306, ,693 1,055, % (64,555) 0 0 $13.76 Wilmington Ind 173 5,434,120 94,867 94, % (58,572) 0 0 $7.40 Woodland Hills Ind 40 1,978,775 21,251 21, % (21,251) 0 0 $9.14 Totals 33,319 1,002,499,065 42,641,096 47,457, % (8,656,009) 2,746, ,688 $ THE COSTAR INDUSTRIAL REPORT 2010 COSTAR GROUP, INC.

22 FIGURES AT A GLANCE YEAR-END 2009 LOS ANGELES Total Industrial Submarket Statistics Year-End 2009 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Agoura/Wlake V/T Oaks ,519, , , % (211,042) 0 0 $12.44 Alhambra Ind 253 5,377, , , % 16,123 40,165 0 $8.22 Antelope Valley Ind 336 8,940, , , % (72,669) 63,090 24,136 $6.73 Arcadia/Sierra Madre Ind 113 1,569,766 50,768 50, % (38,850) 0 0 $12.30 Azusa Ind 314 9,225, , , % (54,729) 0 0 $6.50 Baldwin Park Ind 266 4,343, , , % ,116 0 $8.20 Beach Cities Ind 84 3,098,952 34,543 34, % 33, $10.38 Burbank Ind 1,211 20,205, , , % (396,515) 6,665 0 $10.81 Canoga Park Ind 370 6,437, , , % (8,450) 0 45,101 $8.52 Carson Central Ind ,599,713 1,136,179 1,215, % (312,372) 148,725 0 $6.98 Carson North Ind 139 6,807, , , % 60,300 55,720 0 $6.81 Carson South Ind ,978, , , % 58, $6.89 Central Los Angeles Ind 4, ,328,545 4,037,593 4,120, % (404,914) 472,632 0 $8.83 Central Ventura Ind ,479, ,410 1,016, % (360,477) 82,310 48,877 $7.33 Cerritos Ind ,380,958 1,177,341 1,410, % (112,113) 0 0 $6.08 Chatsworth Ind ,352, ,706 1,044, % 301, ,240 0 $8.26 City of Industry Cent Ind ,714, , , % 52, $7.67 City of Industry East Ind ,274,650 1,770,124 2,301, % (829,780) 318,092 0 $5.28 City of Industry West Ind 74 5,936, , , % (58,495) 0 0 $5.90 Claremont Ind 41 1,458,482 44,862 49, % (32,868) 0 0 $9.33 Commerce Ind ,685,954 2,489,941 3,061, % (143,171) 402,507 0 $5.70 Compton East Ind 125 3,078,518 70,458 70, % 24, $11.20 Compton West Ind ,752,681 1,456,497 1,675, % (846,291) 0 0 $5.61 Covina Ind 239 3,296,991 88,500 88, % 3, $7.88 Diamond Bar Ind 2 30, , $8.16 Downey Ind 285 9,315, , , % (41,935) 0 0 $7.10 Duarte Ind 54 1,185,780 29,602 29, % 18, $8.84 East San Ferndo Vlly Ind 2,395 49,427,189 1,554,306 1,594, % (450,018) 34,336 20,580 $8.69 El Monte Ind 320 9,166, , , % 77, $8.27 El Segundo Ind ,588, , , % 20, ,112 $17.15 Encino Ind 1 2, $0.00 Gardena Central Ind ,477, , , % 100,785 14,968 0 $6.61 Gardena East Ind 194 6,627, , , % (286,917) 0 0 $6.43 Gardena NE Ind 246 6,461, , , % 49, $6.05 Gardena North Central Ind 170 4,463, , , % 49, $6.34 Gardena North Ind 347 4,854, , , % 6,682 41,097 0 $7.30 Gardena NW Ind , $0.00 Gardena South Ind 224 5,349, , , % 3, $6.86 Glendale Ind ,621, , , % (106,409) 0 6,438 $10.47 Glendora Ind , , , % (77,271) 0 0 $7.49 Hawthorne Ind 299 9,834, , , % (72,705) 0 0 $8.85 Industry/Hacienda Blv Ind ,540, , , % 94, ,907 0 $6.36 Industry/La Puente Ind 151 9,414, , , % (393,341) 0 0 $5.59 Industry/Rowland St Ind ,998, , , % (172,802) 0 0 $6.36 Inglewood Ind 307 5,063, , , % 86, $10.63 Irwindale Ind 210 8,185, , , % (96,812) 0 0 $ COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 17

23 LOS ANGELES YEAR-END 2009 FIGURES AT A GLANCE Total Industrial Submarket Statistics Year-End 2009 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates La Mirada Ind ,575, , , % 121, $6.36 La Verne Ind 155 3,290, , , % (19,121) 0 0 $6.98 Lakewood Ind ,434 3,700 3, % (3,700) 0 0 $7.35 Lawndale Ind ,596 18,500 18, % $10.06 Long Beach North Ind 283 7,048, , , % (222,578) 0 0 $8.87 Long Beach SE Ind 319 6,623,580 1,377,937 1,398, % 96, $7.45 Long Beach SW Ind 461 5,322, , , % 6, $7.18 Lynwood Ind 198 7,295,690 86, , % (94,685) 0 0 $5.04 Monrovia Ind 305 5,222, , , % (17,526) 0 0 $8.63 Montebello/Whittier Ind ,707, , , % (72,028) 0 0 $6.06 Moorpark/Simi Val Ind ,421, ,389 1,042, % (259,161) 141,568 0 $8.60 North Hollywood Ind 434 8,377, , , % (90,014) 0 0 $8.28 Northridge Ind ,676, , , % (131,701) 0 0 $10.29 Norwalk/Bellflower Ind 188 7,422, , , % (250,240) 0 0 $6.93 Oxnard/Pt Hueneme Ind ,943,428 1,071,196 1,247, % (288,236) 174,429 14,444 $7.36 Paramount North Ind 103 3,276,610 97,771 98, % (25,027) 0 0 $6.59 Paramount South Ind 252 5,045, , , % 54, $7.44 Pasadena Ind 259 4,477, , , % (3,509) 0 0 $12.26 Pomona North Ind 147 3,135, , , % (135,524) 0 0 $6.72 Pomona SE Ind ,219,877 1,023,585 1,190, % (520,696) 0 0 $5.28 Pomona SW Ind 167 4,856, , , % 48, $6.95 Rancho Dominguez Ind ,425,181 1,084,230 1,200, % (144,242) 65,672 0 $6.61 Rosemead Ind 57 1,675, , $5.95 San Dimas Ind 192 4,449, , , % (181,514) 0 0 $9.70 San Gabriel Ind 91 1,359,612 48,934 48, % (4,238) 0 0 $7.45 San Pedro Ind 43 1,820, , $9.78 Santa Clarita/Lancstr Ind ,771,141 1,442,781 1,481, % (276,761) 42,951 0 $7.46 Santa Fe Springs Ind 1,591 53,798,139 2,626,781 2,666, % (1,160,478) 106,001 0 $6.27 Signal Hill Ind 319 5,977, , , % 80,217 6,572 0 $10.40 South El Monte NE Ind 427 5,458, , , % 17, $7.27 South El Monte NW Ind 189 2,198,301 68,047 68, % 10, $7.44 South El Monte SE Ind 139 2,031,736 66,782 66, % (33,774) 0 0 $7.36 Tarzana Ind ,149 27,817 27, % (16,531) 0 0 $12.33 Temple City Ind ,826 4,750 4, % 10, $9.62 Topanga/Malibu Ind 2 40, $0.00 Torrance Central Ind 165 3,868, , , % 165, ,647 0 $8.34 Torrance NE Ind ,851, , , % 156, $7.26 Torrance NW Ind 226 8,791, , , % (164,957) 0 0 $8.08 Torrance South Ind 275 8,074, , , % (64,735) 0 0 $7.44 Ventura Ind ,338, , , % (52,100) 0 0 $8.61 Vernon Ind 2,311 89,672,321 3,173,633 3,406, % (1,198,872) 11,055 0 $5.93 W San Fern Val Ind 1 42, $0.00 West Covina/Walnut Ind 162 4,812, , , % 72,498 96,870 29,168 $10.23 Westside Ind 1,128 23,052,095 1,183,329 1,381, % (188,556) 0 0 $17.41 Wilmington Ind 178 5,484,752 94,867 94, % (58,572) 0 0 $7.40 Woodland Hills Ind 55 2,552,206 45,162 45, % (25,751) 0 0 $10.73 Totals 36,342 1,075,737,671 47,071,623 52,283, % (9,371,102) 2,933, ,856 $ THE COSTAR INDUSTRIAL REPORT 2010 COSTAR GROUP, INC.

24 FIGURES AT A GLANCE YEAR-END 2009 LOS ANGELES Flex Market Statistics Year-End 2009 Net Deliveries UC Inventory Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates ,023 73,238,606 4,430,527 4,826, % 88, ,168 $ q 3,023 73,238,606 4,579,601 4,914, % (65,575) 1 7, $ ,022 73,230,765 4,493,680 4,841, % (273,003) 4 83, ,841 $ q 3,018 73,147,705 4,093,590 4,485, % (465,273) 3 95, ,901 $ ,016 73,212,030 3,722,560 4,084, % (545,197) 1 20, ,735 $ q 3,015 73,191,502 3,123,958 3,518, % (115,706) ,263 $ ,015 73,191,502 3,028,577 3,402, % (150,345) 1 10, ,144 $ q 3,014 73,180,596 2,934,306 3,241, % 119, ,480 $ ,014 73,180,596 3,032,699 3,361, % 450, , ,434 $ q 3,014 73,197,760 3,432,208 3,829, % (303,180) 5 181, ,358 $ ,009 73,016,590 2,893,403 3,344, % 62, , ,528 $ q 2,996 72,854,067 2,888,030 3,244, % (294,075) 1 7, ,221 $ ,996 72,887,045 2,729,417 2,983, % 645, , ,115 $ ,989 72,727,256 3,199,925 3,469, % 2,167, , ,441 $ ,973 72,478,607 5,006,927 5,387, % 97, , ,021 $ ,966 72,333,668 4,474,889 5,339, % 270, , ,251 $12.94 Quoted Warehouse Market Statistics Year-End 2009 Net Deliveries UC Inventory Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates ,319 1,002,499,065 42,641,096 47,457, % 63, , ,688 $ q 33,303 1,001,781,843 42,086,670 46,803, % (1,241,038) 6 193, ,033 $ ,297 1,001,588,062 40,774,587 45,368, % (3,587,525) , ,713 $ q 33,286 1,000,936,606 36,827,303 41,129, % (3,890,637) , ,807,184 $ ,265 1,000,041,625 32,634,138 36,343, % (1,455,610) , ,220,547 $ q 33, ,221,607 30,922,175 34,068, % (1,821,985) 25 1,149, ,894,332 $ , ,115,189 28,367,312 31,139, % (3,167,213) , ,422,783 $ q 33, ,373,741 25,078,391 27,231, % (1,444,946) , ,302,278 $ , ,296,490 23,573,639 25,709, % 4,069, ,026, ,536,607 $ q 33, ,470,567 25,421,888 27,952, % (932,463) , ,079,496 $ , ,915,913 23,926,083 26,465, % (1,329,773) , ,991,592 $ q 33, ,024,467 22,944,568 25,244, % (495,413) 43 1,391, ,772,178 $ , ,778,687 22,761,327 24,503, % 14,171, ,184, ,085,549 $ , ,175,748 30,889,636 32,071, % 10,928, ,186, ,278,855 $ , ,343,350 33,313,961 35,167, % 11,940, ,923, ,220,940 $ , ,682,908 38,316,022 40,447, % 10,117, ,358, ,663,173 $6.45 Quoted Total Industrial Market Statistics Year-End 2009 Net Deliveries UC Inventory Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates ,342 1,075,737,671 47,071,623 52,283, % 151, , ,856 $ q 36,326 1,075,020,449 46,666,271 51,718, % (1,306,613) 7 201, ,033 $ ,319 1,074,818,827 45,268,267 50,209, % (3,860,528) , ,002,554 $ q 36,304 1,074,084,311 40,920,893 45,614, % (4,355,910) 28 1,060, ,898,085 $ ,281 1,073,253,655 36,356,698 40,428, % (2,000,807) 24 1,012, ,399,282 $ q 36,264 1,072,413,109 34,046,133 37,587, % (1,937,691) 25 1,149, ,093,595 $ ,240 1,071,306,691 31,395,889 34,542, % (3,317,558) , ,601,927 $ q 36,204 1,070,554,337 28,012,697 30,473, % (1,325,242) , ,353,758 $ ,199 1,070,477,086 26,606,338 29,070, % 4,520, ,030, ,568,041 $ q 36,171 1,068,668,327 28,854,096 31,781, % (1,235,643) , ,104,854 $ ,150 1,067,932,503 26,819,486 29,810, % (1,267,206) , ,198,120 $ q 36,116 1,067,878,534 25,832,598 28,489, % (789,488) 44 1,399, ,136,399 $ ,082 1,067,665,732 25,490,744 27,487, % 14,816, ,354, ,403,664 $ ,917 1,060,903,004 34,089,561 35,540, % 13,095, ,460, ,426,296 $ ,742 1,052,821,957 38,320,888 40,555, % 12,037, ,257, ,471,961 $ ,578 1,046,016,576 42,790,911 45,787, % 10,388, ,879, ,968,424 $7.13 Quoted 2010 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 19

25 LOS ANGELES YEAR-END 2009 LEASING ACTIVITY Leasing Highlights in Select CoStar Markets Color Coded by Rate 20 THE COSTAR INDUSTRIAL REPORT 2010 COSTAR GROUP, INC.

26 LEASING ACTIVITY YEAR-END 2009 LOS ANGELES Historical Rental Rates Based on Quoted Rental Rates $20.00 Flex Warehouse Total Market Dollars/SF/Year $18.00 $16.00 $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $ q 2007 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 10% 5% 9% 14% 90% 95% 91% 86% 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* $10.00 Los Angeles United States $ Dollars/SF/Year $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $ q q q q q 2009 Millions q q q 2011 * Includes Under Construction Space 2010 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 21

27 LOS ANGELES YEAR-END 2009 LEASING ACTIVITY Select Top Industrial Leases Based on Leased Square Footage For Deals Signed in 2009 Building Submarket SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company S Lemon Ave City of Industry East Ind 467,119 2nd Unical Aviation, Inc. Colliers International Colliers International Brea Canyon Rd* City of Industry East Ind 400,000 3rd APL Limited N/A Majestic Realty Co Woodley Ave Northridge Ind 336,182 4th N/A N/A Lee & Associates & 709 Science Dr Moorpark/Simi Val Ind 315,000 1st Pepsi CB Richard Ellis CB Richard Ellis E Carson St Carson Central Ind 293,800 3rd Tatung Company of America DAUM Commercial Real Estate Services Watson Land Company 6 Cerritos Distribution Ctr - Bldg 10* Cerritos Ind 290,000 1st Phoenix Warehouse of California Colliers International Colliers International 7 Fairway Industrial Park - Bldg 2* City of Industry East Ind 260,000 3rd Pengchen Aluminum Enterprise, Inc. N/A Majestic Realty Co. 8 Harbor Gateway I - Bldg B Torrance NE Ind 259,327 4th Housewares International USA N/A Grubb & Ellis 9 ProLogis Park Torrance - Bldg 1 Torrance NE Ind 244,689 4th N/A N/A ProLogis N Baldwin Park Blvd Industry/La Puente Ind 226,938 2nd Performance Sheets N/A AIC Ventures W Victoria St* Rancho Dominguez Ind 208,102 1st National Retail Systems, Inc. CB Richard Ellis Cushman & Wakefield, Inc Bandini Blvd Commerce Ind 189,577 3rd N/A N/A DAUM Commercial Real Estate Services Francisco St* Torrance NE Ind 184,815 1st DFS Group LP N/A Sares-Regis Group E Sheila St Commerce Ind 184,772 4th The Church of Scientology Binswanger/Realty Advisory Group, Inc CB Richard Ellis 15 Watson Ind Center South - Bldg 180 Carson South Ind 177,573 4th BRK Brands, Inc. Cushman & Wakefield, Inc. Watson Land Company 16 Rancho Pacifica - Bldg 303* Rancho Dominguez Ind 169,920 3rd Inland Star Distribution N/A CB Richard Ellis E Whittier Blvd* Montebello/Whittier Ind 165,510 4th Blue Chip Recycling N/A CB Richard Ellis 18 Tricor - Bldg F* Cerritos Ind 152,996 3rd TricorBraun N/A Cushman & Wakefield, Inc Madera Rd Moorpark/Simi Val Ind 135,683 3rd N/A N/A Cushman & Wakefield, Inc Worth St Central Los Angeles Ind 131,726 2nd City Fibers Binswanger/Realty Advisory Group, Inc Cushman & Wakefield, Inc. 21 Watson Ind Center South - Bldg 106 Carson South Ind 129,625 4th N/A N/A Watson Land Company 22 The Plantation - Bldg 7 City of Industry East Ind 129,600 3rd JAS Service Corp DAUM Commercial Real Estate Services DAUM Commercial Real Estate Services E 236th St Carson South Ind 128,140 4th N/A N/A Watson Land Company S Figueroa St Gardena NE Ind 125,785 2nd GR Sales, Inc. Grubb & Ellis Grubb & Ellis S Figueroa St Gardena Central Ind 123,189 3rd Global Stainless Supply N/A The Klabin Company S Figueroa St Gardena East Ind 117,000 1st Castle Metals Aerospace The Klabin Company NAI Capital Imperial Hwy Santa Fe Springs Ind 113,125 3rd Philidelphia Gear Corp Cushman & Wakefield, Inc. CB Richard Ellis Northam St La Mirada Ind 112,152 1st KSDS Enterprises, Inc. CB Richard Ellis Grubb & Ellis S 7th Ave Industry/Hacienda Blv Ind 111,000 4th Option Group, Inc. Direct Deal Colliers International W Rosecrans Ave Gardena North Central Ind 110,000 4th Columbia Manufacturing Corp The Klabin Company CB Richard Ellis 31 Torrance - Building 2 Torrance NE Ind 109,596 4th N/A N/A ProLogis 32 Commerce Industrial Center - Bldg 1* Commerce Ind 101,902 1st Pacesetter Fabrics LLC ProLogis ProLogis S Reyes Ave Rancho Dominguez Ind 101,508 2nd N/A N/A DAUM Commercial Real Estate Services W Carob St* Compton West Ind 100,000 2nd National Retail Systems, Inc. CB Richard Ellis Sares-Regis Group 35 3 Minson Ave Montebello/Whittier Ind 98,590 4th N/A N/A Grubb & Ellis John St Santa Fe Springs Ind 98,377 4th Independent Trading Co DAUM Commercial Real Estate Services Voit Real Estate Services Nordhoff St* Chatsworth Ind 98,370 3rd Capstone Turbine Corporation N/A N/A Sandhill Ave Carson North Ind 97,000 1st ITOYA of America Ltd Sperry Van Ness The Klabin Company Mulberry Dr Santa Fe Springs Ind 96,758 1st Perfect Fit Industries, Inc. N/A CB Richard Ellis E Temple Ave Industry/La Puente Ind 93,000 2nd Romeo & Layla Grubb & Ellis DAUM Commercial Real Estate Services * Renewal 22 THE COSTAR INDUSTRIAL REPORT 2010 COSTAR GROUP, INC.

28 SALES ACTIVITY YEAR-END 2009 LOS ANGELES The Optimist Sales Index Average of Two Highest Price/SF's and Two Lowest Cap Rates Per Quarter 7.0% Cap Rate Price/SF $ % $450 $400 Cap Rate Percentage 5.0% 4.0% 3.0% $350 $300 $250 $200 $150 Dollars/SF 1.0% $100 $ q q q q q q $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 $1,200 $140 Millions of Sales Volume Dollars $1,000 $800 $600 $400 $200 $120 $100 $80 $60 $40 $20 Price/SF < 25,000 SF 323 3,062,315 $ 470,247,056 $ % 25K-99K SF 84 4,086,048 $ 370,693,103 $ % 100K-249K SF 9 1,395,327 $ 106,450,000 $ % $ $0 >250K SF 2 618,786 $ 54,876,000 $ % 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 $140 Los Angeles US 1 Los Angeles US Dollars per SF $120 $100 $80 $60 $40 $20 Cap Rate Percentage 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 1.0% $ Source: CoStar COMPS Source: CoStar COMPS 2010 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 23

29 LOS ANGELES YEAR-END 2009 SALES ACTIVITY 24 THE COSTAR INDUSTRIAL REPORT 2010 COSTAR GROUP, INC.

30 SALES ACTIVITY YEAR-END 2009 LOS ANGELES Select Land Sales Based on Industrial Zoned Land Sales Occurring From Oct Dec Nelson Ave, Los Angeles Illinois Ave, Paramount A St, Torrance Sale Price: $4,469,114 Sale Price: $4,150,000 Sale Price: $3,688,410 Acres: 5.83 Acres: 3.18 Acres: 2.82 Price/SF: $17.61 Price/SF: $29.94 Price/SF: $30.00 Closing Date: 03/26/2009 Closing Date: 04/07/2009 Closing Date: 06/05/2009 Zoning: IDM Zoning: M2, Paramount Zoning: M3 Intended Use: Industrial Intended Use: Industrial Intended Use: Hold for Development Buyer: PRL Glass Systems, Inc. Buyer: Press Forge Company Buyer: Seabreeze Homes L.P. Seller: Industry Urban - Development Agency Seller: Gordon A Newell Seller: Storm Industries, Inc. A St, Torrance Bandini Blvd, Los Angeles S Charlie Rd, City Of Industry Sale Price: $3,665,970 Sale Price: $3,400,000 Sale Price: $3,327,729 Acres: 2.81 Acres: 2.46 Acres: 2.43 Price/SF: $30.00 Price/SF: $31.73 Price/SF: $31.44 Closing Date: 06/05/2009 Closing Date: 06/09/2009 Closing Date: 12/18/2008 Zoning: M3 Zoning: M2, M Zoning: M Intended Use: Hold for Development Intended Use: Industrial Intended Use: Industrial Buyer: 223rd Normandie Properties L.P. Buyer: Chickadee Environmental Remediation Co Buyer: Cardinal Development Co. Seller: Storm Industries, Inc. Seller: Honeywell International, Inc. Seller: Industry Urban-Development Agency Source: CoStar COMPS 2010 COSTAR GROUP, INC. THE COSTAR INDUSTRIAL REPORT 25