MARKET AT A GLANCE 900K SF 4.0% $ M SF 6.4% 83,365 INDUSTRIAL MARKET KEEPS UPWARD TRAJECTORY. Research FORT WAYNE

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MARKET AT A GLANCE 69M SF 6.4% 83,365 SF $3.90 900K SF 4.

prices and lease rates increased during the first half of 2016. Key indicators suggest the industrial market will continue on a strong growth path that will positively impact the industrial sector.

In the coming months, look for more build-to-suit developments to occur as expanding users are unable to fulfill their requirements with existing buildings.

AVERAGE LEASE RATE & VACANCY Average Lease Rate Vacancy (%) $5 10% $4 8% $3 6% $2 4% $1 2% 2Q10 2Q11 2Q12 2Q13 2Q14 2Q15 2Q16 Economic Conditions The U.S. Bureau of Labor Statistics reported an unemployment rate of 4.

Overall, the United States gained 38,000 jobs since last month and has a 4.7% unemployment rate.

1 MARKET AT A GLANCE 69M SF 6.4% 83,365 SF $ K SF 4.0% Inventory Vacancy Rate Net Absorption Average Lease Rate Under Construction Unemployment Rate INDUSTRIAL MARKET KEEPS UPWARD TRAJECTORY Northeast Indiana continues its upward trajectory as sale prices and lease rates increased during the first half of Key indicators suggest the industrial market will continue on a strong growth path that will positively impact the industrial sector. Availability of industrial space continues to tighten, and companies looking to expand are finding fewer acceptable/desirable existing buildings for sale or lease. In the coming months, look for more build-to-suit developments to occur as expanding users are unable to fulfill their requirements with existing buildings. Expect sale prices and lease rates to continue to increase as landlords and sellers will have leverage over tenants and buyers. AVERAGE LEASE RATE & VACANCY Average Lease Rate Vacancy (%) $5 10% $4 8% $3 6% $2 4% $1 2% 2Q10 2Q11 2Q12 2Q13 2Q14 2Q15 2Q16 Economic Conditions The U.S. Bureau of Labor Statistics reported an unemployment rate of 4.0% for in May According to the CES survey of employers, there were 200 jobs added in May for a total of 222,400 jobs. The CPS survey of households showed 208,162 employed persons for the month. Overall, the United States gained 38,000 jobs since last month and has a 4.7% unemployment rate. MARKET PERFORMANCE Inventory (Local Profile) 2Q16 (Current Quarter) 1Q16 (Previous Quarter) 1Q15 (Previous Year) 69M SF 69M SF 52M SF Vacancy Rate 6.4% 5.9% 7.2% 12 Month Forecast New Office! We celebrate the opening of our new office located in the beautifully appointed 1st Source Bank building in downtown, Indiana. Managing Director, Bill Drinkall, and brokers Zach Meyer and Gary Buschman, will oversee and actively market the strategic expansion of our firm s territory into the Greater area and the outlying northeast Indiana counties. Newmark Grubb Cressy & Everett 200 E. Main Street, Suite 540, Indiana Quarterly Net Absorption 83, , ,060 Average Lease Rate $3.90 $3.91 $3.80 Under Construction 885,000 SF 120,000 16,440 Completed Construction ,000

OUR MARKET IN MOTION GE To Redevelop 1.2M Square-Foot Campus General Electric (GE), in collaboration with Greater (GFW) Inc., is searching for a developer and/or investor to redevelop the 1.

Proposed development projects like the $100 million riverfront, $30 million redevelopment of The Landing, and $85 million downtown arena have played a role in GE s choice to begin the potential

5 million cargo transfer facility going up on s southeast side is going to make the transportation of goods more efficient and competitive in the tri-state region.

facility on 74 acres near the northeast corner of Adams Center and E. Paulding Roads.

plans to invest $12 million to double the size of its Fremont facilities, and add up to 30 jobs by 2019.

Walmart To Build Nation s Largest Milk Processing Plant Walmart, the nation s largest grocer, will build a more than 250,000- square-foot, $165 million milk processing plant in, which is

The plant will provide new opportunities for Indiana s dairy industry, creating more than 200 good-paying jobs ranging from milk processing to transportation by the end of 2017.

2 OUR MARKET IN MOTION GE To Redevelop 1.2M Square-Foot Campus General Electric (GE), in collaboration with Greater (GFW) Inc., is searching for a developer and/or investor to redevelop the 1.2 million-square-foot GE Broadway Street campus. This campus has been unoccupied since January Proposed development projects like the $100 million riverfront, $30 million redevelopment of The Landing, and $85 million downtown arena have played a role in GE s choice to begin the potential redevelopment process. Construction Begins On Multi-Million Cargo Transfer Facility A $13.5 million cargo transfer facility going up on s southeast side is going to make the transportation of goods more efficient and competitive in the tri-state region. Indianapolis-based Transpoint Intermodal which already operates rail-fed container terminals in Mexico began construction June 28 on its first U.S. facility on 74 acres near the northeast corner of Adams Center and E. Paulding Roads. Transpoint Intermodal SE, Indiana Future GE Campus, Indiana Fastener Manufacturer Invests $12M To Double Capacity Cold Heading Co., a Michigan-based fastener manufacturer, announced. plans to invest $12 million to double the size of its Fremont facilities, and add up to 30 jobs by Plans include the construction of a 148,000 square-foot facility, allowing for additional production capacity. Walmart To Build Nation s Largest Milk Processing Plant Walmart, the nation s largest grocer, will build a more than 250,000- square-foot, $165 million milk processing plant in, which is expected to be one of the largest in the industry. The plant will provide new opportunities for Indiana s dairy industry, creating more than 200 good-paying jobs ranging from milk processing to transportation by the end of Today, Indiana s agriculture industry contributes $31 billion to the state s economy and supports more than 100,000 Hoosier jobs, said Governor Mike Pence. Cold Heading Freemont, Indiana Automotive Manufacturer Breaks Ground On $33.5M Facility Michigan-based Continental Structural Plastics Inc. is expanding in Huntington. The automotive manufacturer is planning to invest $33.5 million into a new facility next to its current Huntington operations. The new 130,000-square-foot plant project is expected to add up to 80 workers by Walmart Milk Processing Plant South, Indiana $650M In High-Profile Projects Planned For Downtown Greater, Inc. unveiled their grand agenda for the next decade, including approximately $650 million in high-profile projects in and near downtown. Five main projects include a downtown arena, redevelopment of The Landing, the north Riverfront project, redevelopment of the old GE campus, and a STEAM park. 2

3 NOTABLE LEASE TRANSACTIONS Tenant Building Submarket Type Square Feet Mullinix Packages, Inc Meyer Road East Direct 321,600 Tradition Transportation Co. 300 Growth Parkway Northeast Direct 73,000 Hunar Sakri Duesenburg, Inc Congressional Parkway Northwest Direct 25,000 Newcomed FW, LLC 8414 Clinton Park Drive Northwest Direct 19,500 NOTABLE SALE TRANSACTIONS Building Submarket Sale Price Price/SF Square Feet 201 RE Jones Road Northeast $5,100,000 $ , N Detroit Street Northwest $452,500 $ , Congressional Parkway Northwest $900,000 $ , American Way South (Airport Area) $530,000 $ ,290 SUBMARKET STATISTICS Submarket Area Inventory Under Construction Vacancy Rate (%) Quarter Absorption Warehouse/ Distribution Lease Rates R&D Flex Lease Rates Lease Rates Northeast 13,525,504 60, ,682 $3.70 $4.91 $4.30 Northwest 4,491,944 N/A ,222 $2.92 $4.62 $3.77 Southeast 11,038,024 N/A ,500 $3.25 $4.80 $4.02 Southwest 11,435, , ,000 $3.65 $4.61 $4.13 East 6,267,962 N/A ,356 $2.48 $4.60 $3.54 CBD 1,556,123 N/A ,012 $3.46 $4.51 $3.98 South (Airport Area) 20,742,756 N/A ,669 $2.87 $4.30 $3.58 TOTALS 69,057, , % 83,365 $3.19 $4.62 $3.90 Newmark Grubb Cressy & Everett (NGCE) quarterly market reports are a compilation of data from multiple sources. The data is reviewed quarterly and adjusted due to circumstances in the market, such as new construction and demolition. The vacancy square footage is compiled from a combination of online data from multiple major listing services, broker provided listing information and industry knowledge. NGCE has created this report to provide the most accurate information possible. We do not assume responsibility, however, for errors, omissions, prior sale, lease or withdrawal from the market. 3

4 HOW DO WE COMPARE? TOTAL INVENTORY TOTAL INVENTORY UNITED STATES STATE LOCAL 15.1B 624.5M 69M VACANCY RATE 6.2% 6.9% 6.4% NET ABSORPTION (% OF INVENTORY) 0.31% 0.26% 0.12% AVERAGE LEASE RATE (PSF) $6.36 $3.55 $3.90 UNDER CONSTRUCTION 153.8M 2.1M 885,000 UNEMPLOYMENT RATE 4.7% 5.0% 4.0% Market Perspective Vacancy levels are expected to decline over the next 12 months which should boost developer confidence levels enough to catalyze the construction of new speculative buildings. The City of is offering incentives to help with the carrying cost of assets built in their development areas as a means of growing local businesses and attracting new business to the area. Bill Drinkall, Managing Director Office 4

Corporate Headquarters 4100 Edison Lakes Parkway Suite 350 Mishawaka, IN 46545 574.271.4060 NEW! Office 200 E. Main Street Suite 540, IN 46802 260.399.

Newmark Grubb Knight Frank & Newmark Grubb Affiliate Office Locations Meet Our Team Bill Drinkall Managing Director 260.399.4057 (o) 260.715.3408 (c) billdrinkall@cressyandeverett.

com Years of Experience 4 Areas of Specialization Industrial Medical Office Retail 2016.

5 Corporate Headquarters 4100 Edison Lakes Parkway Suite 350 Mishawaka, IN NEW! Office 200 E. Main Street Suite 540, IN Grand Rapids Office 32 Market Street Suite 302 Grand Rapids, MI Socialize with us! Newmark Grubb Knight Frank & Newmark Grubb Affiliate Office Locations Meet Our Team Bill Drinkall Managing Director (o) (c) Years of Experience 15 Areas of Specialization Medical Office Retail Investment (All Segments) Zach Meyer Associate Broker (o) (c) Years of Experience 4 Areas of Specialization Industrial Medical Office Retail Newmark Grubb Cressy & Everett has implemented a proprietary database and our tracking methodology has been revised. With this expansion and refinement in our data, there may be adjustments in historical statistics including availability, asking rents, absorption and effective rents. All information contained in this publication is derived from sources that are deemed to be reliable. However, Newmark Grubb Cressy & Everett (NGCE) has not verified any such information, and the same constitutes the statements and representations only of the source thereof, and not of NGCE. Any recipient of this publication should independently verify such information and all other information that may be material to any decision that recipient may make in response to this publication, and should consult with professionals of the recipient s choice with regard to all aspects of that decision, including its legal, financial, and tax aspects and implications. Any recipient of this publication may not, without the prior written approval of NGCE, distribute, disseminate, publish, transmit, copy, broadcast, upload, download, or in any other way reproduce this publication or any of the information it contains.

DISTRICT OF COLUMBIA OFFICE MARKET

REAL ESTATE OUTLOOK DISTRICT OF COLUMBIA OFFICE MARKET Robust market conditions during Q4 Leasing activity on the rise in Q4 powered by associations and non-profits The District of Columbia experienced