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Current Market Trends

Rental

Rates

Rental rates in the

market gradually

increased throughout

2012. Anticipate the

same in 2013 as

vacancy rates

continue to decline.

Leasing

Activity

Leasing activity

remained steady

rom Q3 into Q4 with

some seasonal

slowness taking

place through the

holidays. Expect

leasing activity to

increase in 2013.

Tenant

Concessions

Tenant concessions

continue to diminish

as vacancy rates

drop rom the peakso 2009/2010. Free

rent and tenant

improvement dollars

are still used to

secure leases, but at

a level that continues

to all.

cassidyturley.com | 1

Baltimore I-95 SouthIndustrial Market Review Fourth Quarter 2012

Baltimore Metropolitan Overview

The Greater Baltimore Metropolitan area

has emerged as one o the strongest

second-tier markets in the United States.

While Baltimore is a stand-alone

metropolitan statistical area (MSA) with

over 2.7 million residents, it is also part

o the Washington-Baltimore

consolidated statistical area (CSA) with a

total population over 8 million. The

Greater Baltimore region comprises

Anne Arundel, Baltimore, Carroll, Cecil,Harord, and Howard Counties as well as

Baltimore City. As o November 2012,

the Baltimore metropolitan areas

unemployment rate was 6.8% compared

to the national unemployment rate o

7.8% in the same month.

Baltimore I-95 South Industrial Market

Ater 341,684 square eet o positive

absorption in the ourth quarter, the I-95

South industrial market ended the year

with a 13.25% vacancy rate, down rom

14.70% at the end o 2011. Average

rental rates increased across all product

types in 2012 and industrial assets have

proven to be an attractive buy or

institutional investors.

The Baltimore-Washington Corridor

experienced the greatest reduction in

vacancy rate in 2012 as more than

350,000 square eet o positive

absorption in the ourth quarter brought

the vacancy rate down to 12.09%, the

lowest in the market.

Q4 2012 Vacancy Rates &Average Quoted Rental Rates

Vacancy Rate

Product Type # O Buildings SF SF Vacant Vacancy Rate

Flex 320 13,248,002 1,700,353 12.83%

Oice Warehouse 453 30,983,625 4,352,004 14.05%

Bulk 186 31,358,213 3,970,936 12.65%

I-95 South Totals 959 75,589,840 10,023,293 13.25%

By Submarket # O Buildings SF SF Vacant Vacancy Rate

Corridor 547 50,874,207 6,151,511 12.09%

Southeast 173 7,351,408 909,240 12.30%

Southwest 239 17,364,225 2,962,542 17.06%

I-95 South Totals 959 75,589,840 10,023,293 13.25%

Average Quoted Rental Rate

By Submarket Flex O/W Bulk Average

Corridor $6.74 $5.37 $5.27 $5.62

Southeast $9.97 $6.70 $3.54 $5.75

Southwest $6.50 $4.83 $4.12 $4.61

I-95 South Averages $7.30 $5.34 $4.85 $5.52

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BALTIMORE I-95 SOUTH INDUSTRIAL FOURTH QUARTER 2012

About Cassidy TurleyCassidy Turley is a leading commercial real estate services provider with more than 3,700 proessionals in more than 60 ofces nationwide. Thecompany represents a wide range o clientsrom small businesses to Fortune 500 companies, rom local non-profts to major institutions. Thefrm completed transactions valued at $22 billion in 2011, manages 455 million square eet on behal o institutional, corporate and private clientsand supports more than 28,000 domestic corporate services locations. Cassidy Turley serves owners, investors and tenants with a ull spectrumo integrated commercial real estate servicesincluding capital markets, tenant representation, corporate services, project leasing, propertymanagement, project and development services, and research and consulting. Cassidy Turley enhances its global service delivery outside NorthAmerica through a partnership with GVA, giving clients access to commercial real estate proessionals in 65 international markets. Please visitwww.cassidyturley.com or more inormation about Cassidy Turley.cassidyturley.com | 2

Notable Q4 2012 Lease Transactions

Property 8779 Greenwood PlaceSavage, MD

8251 Preston CourtJessup, MD

3000 Waterview AvenueBaltimore, MD

Size 45,716 SF 65,000 SF 94,836 SF

Term 5 Years 7 Years 10 Years

Yr. 1 Rent/Esc. $4.15/3% $4.50/3% $4.40/2.5%

TI PSF Minimal $1.00 $10.00

Tenant PBD Fulfllment Autobahn Speedway CHEP

Landlord DCT Industrial Prologis Continental

Type New New New/Relocation

12.09% Vacancy Rate o20-24 clearbuildings in the BW Corridor submarket

at the end of Q4 2012.

15.22% Vacancy Rate o20-24 clearbuildings in the BW Corridor submarket

at the end of Q4 2011.

7.52% Vacancy Rate o26-30 clearbuildings in the BW Corridor submarket

at the end of Q4 2012.

10.60% Vacancy Rate o26-30 clearbuildings in the BW Corridor submarket

at the end of Q4 2011.

For more inormation, contact one o

our Industrial Brokers:

Cassidy Turley

100 Light Street

Suite 1400

Baltimore, MD 21202

Tel: 410.752.4285

Fax: 410.576.9031

www.cassidyturley.com

Notable Q4 2012 Sales Transactions

Property 1021 Swan Creek DriveCurtis Bay, MD

8125 Stayton RoadJessup, MD

9060 Junction DriveAnnapolis Junction, MD

Size 154,400 SF 205,000 SF 144,571 SF

Seller Belts Realty Stayton Associates, LLC Emory Properties

Buyer Hartz Mountain TA Realty Associates TA Realty Associates

Price $13,500,000 $13,700,000 $8,250,000

Behind the Numbers

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Submarket Cassidy Turley Classifcation Number o Buildings Total Size (SF) Total Available (SF) Vacancy Rate QTR Absorption (SF)

Corridor

Airport 100 3 737,600 0 0.00% 0

Arundel Crossing 11 1,706,054 76,350 4.48% 0

Baltimore Commons 30 3,391,213 394,375 11.63% -94,102

Baymeadow 17 2,073,594 17,815 0.86% 0

Brandon Woods 17 1,973,886 245,805 12.45% 0BWI Commerce Park 14 511,658 94,200 18.41% 30,650

BWIP 96 7,709,179 880,515 11.42% 254,041

Columbia Gateway 4 2,168,713 465,140 21.45% 202,006

Corridor Industrial 18 2,050,248 157,029 7.66% -12,554

Cromwell Business Park 14 707,632 88,641 12.53% 0

Guilford Industrial 34 2,681,772 571,399 21.31% 42,565

Harwood Industrial Park 9 159,645 5,000 3.13% 0

Hillside/Preston Gateway 8 1,566,168 26,208 1.67% 0

Industrial Trade Center 14 669,887 86,440 12.90% 5,700

Junction Business Park 18 1,205,248 118,920 9.87% 6,000

Marley Neck 8 1,755,835 28,886 1.65% 0

MD Wholesale Food Center 17 2,979,319 769,542 25.83% 0

Meadowridge 13 1,707,670 217,949 12.76% -8,200

Montevideo/Dorsey Run 18 1,829,848 334,418 18.28% 25,586

Oakland Ridge 17 961,632 61,943 6.44% 10,401

Park 100 5 484,450 104,000 21.47% 0

Parkway Industrial 24 1,398,347 160,460 11.47% 0

Patapsco Valley 7 1,195,772 216,299 18.09% 0

Race Road 4 277,855 55,436 19.95% 0

Route 1 Corridor 33 1,633,889 107,235 6.56% -11,900

Route 1 Laurel 21 1,346,020 104,428 7.76% -11,000

Route 100 30 2,726,585 407,654 14.95% -86,437

Sieling Industrial 27 1,265,308 229,237 18.12% 0Troy Hill 16 1,999,180 126,187 6.31% 0

Total 547 50,874,207 6,151,511 12.09% 352,756

Southeast

Annapolis Industrial 23 777,901 68,080 8.75% 10,374

Brooklyn 19 1,717,159 337,491 19.65% 44,300

I-97 Industrial 56 1,756,607 124,300 7.08% 0

Route 2 Industrial 34 1,078,403 66,381 6.16% 0

Route 3 Industrial 21 594,486 41,525 6.99% 0

Route 170 17 1,341,769 271,463 20.23% 484

Telegraph Rd Business Pk 3 125,083 0 0.00% 0

Total 173 7,391,408 909,240 12.30% 55,158

Southwest

Arbutus Industrial 69 6,385,507 1,162,568 18.21% -121,161

Baltimore City Southwest 35 2,117,863 262,550 12.40% 15,150

Camden Industrial Park 24 2,908,697 548,830 18.87% 34,486

Caton Research Center 41 1,709,154 242,552 14.19% 8,900

DeSoto 25 1,448,506 264,834 18.28% -10,800

Hammonds Ferry 43 2,560,612 350,208 13.68% 7,195

West Port, Camden 2 233,886 131,000 56.01% 0

Total 239 17,364,225 2,962,542 17.06% -66,230

Grand Total 959 75,629,840 10,023,293 13.25% 341,684

Cassidy Turley Industrial Market Statistical Overview

October 1, 2012 - December 31, 2012

BALTIMORE I-95 SOUTH INDUSTRIAL FOURTH QUARTER 2012

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