1. Q4 2011 | INDUSTRIAL
GREATER COLUMBUS REGION
INDUSTRIAL TRENDS REPORT
Growth, Expansion Marks 2011
INDUSTRIAL MARKET OVERVIEW
The fourth quarter continued in positive growth from the second and third quarters with 52,000
square feet of positive absorption. The largest movement in absorption was expected from Mars
Petcare moving out of more than 700,000 square feet in two separate facilities, 3051 Creekside and
3800 Groveport Road. With the completion of their new 1.3 million square foot facility last quarter,
some large negative absorption was expected. Instead, Zulily took 737,741 square feet at 3051
Creekside driving 130,000 square feet of absorption. The new lease occurred while Allianz Life
MARKET INDICATORS Insurance Co. was under contract to sell property as a part of a portfolio sale to KTR Capital Partners.
Q3 Q4
FORECASTS AND REFLECTION
2011* 2011**
• There were six significant investment sales Albany is Knowlton’s 240,000-square-foot
VACANCY (sales with full occupancy) in the Columbus facility, Axium Plastic’s 110,000 square foot
market. STAG Industrial purchased the facility, and Pizzuti’s 303,000-square-foot
NET ABSORPTION 385,000-square-foot 1120 Morrison Road for speculative warehouse. Pizzuti’s construction
CONSTRUCTION
$7.8 million, 9.0 percent cap rate. KTR Capital continues for MBM in Groveport as well with
Partners purchased five properties from approximately 125,000 square feet.
RENTAL RATES — — Allianz Life Insurance Co. as part of an 18 • Tenants are optimistic about growing consumer
property sale. The Columbus transfer totalled demand, but cautious in expanding their lease
*Actual change from previous quarter
2.5 million square feet for $62 million. for long terms (5+ years). Companies are still
**Projected change from previous quarter
• VeePak completed its 105,000-square-foot leery of another slowdown.
facility in New Albany. Still underway in New
RENTAL RATES
PROPERTY TYPE VACANCY RATES OVER COMPLETIONS
WEIGHTED AVERAGE RENTAL RATES
Asking rental rates remained
Rates for the Major Product Types
17.0 2,500,000 stable from last quarter.
$7
2.5 $2.20 16.0 2,000,000 Supply has decrease over the
$2.15
15.0 1,500,000
past two quarters by 1.6
2.0 $6
$2.10
percent points, from 13.5 to
$2.05 14.0 1,000,000
1.5 11.8 percent.
$5 $2.00
1.0
13.0 500,000
$1.95
$1.90 12.0 0
0.5 $4
$1.85
11.0 (500,000)
0 $1.80
$33Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q10 4Q10
10.0 (1,000,000)
$2 9.0 (1,500,000)
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
08 08 09 09 09 09 10 10 10 10 11 11 11 11 8.0 (2,000,000)
General Industrial R&D/Flex Warehouse/Dist. 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Q2 Q3 Q4
1 08 5
08 09 09 10 09
09 10 15 10 10 20
10 11 11 25
11 11 30
Completions Absorptions Total Market Vacancy Rate
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2. RESEARCH & FORECAST REPORT | Q4 2011 | INDUSTRIAL | GREATER COLUMBUS REGION
Delaware REGIONAL INDUSTRIAL ECONOMICS October, with an increase of 1.8 percent year
County
Union The Federal Reserve Bank of Cleveland reports over year. Mining, logging and construction
County
at least once a quarter in the Federal Reserve’s decreased by 1,000 employees from October
North
Beige Book about the economic activity of the and is up 13.9 percent year over year.
Licking
Madison
County County fourth district, which includes the Columbus
East
Metropolitan Statistical Area (MSA). The Beige ASKING RATES
West
Book from January 2011 reported that industrial Average asking rental rates increased slightly
CBD activity in the fourth district grew at a slow pace from the second quarter. R&D/Flex space
in the six weeks previous to January 11. Freight increased by $0.38; general industrial decreased
Southwest Southeast
Fairfield
transportation executives reported that transport by $0.17; and warehouse/distribution by $0.01.
County volume slowed along seasonal trends. Capital General industrial prices did not change
Pickaway County outlays are expected to increase during 2012 for significantly but the amount of available space at
fleet expansion and replacement of aging higher prices did change. The R&D/Flex
The Columbus industrial market consists equipment. increased substantially due to the actual change
of 10 suburban submarkets and the
in prices, the median price increased only by
Central Business District. The total
inventory for the region is 213 million Manufacturers reported that new orders were $0.20 and the non-weighted mean increased
square feet of space mainly stable with any declines due to seasonal only by $0.10. As stated in the Q3 Market Report,
factors. Demand is being driven by auto, energy the market has likely seen the end of bottoming
and heavy equipment industries. Manufacturers prices and we expect that there will be slight
remained committed to capital spending plans increases to asking rates.
for 2012. Capacity utilization was below normal
for all industries except for steel production. MARKET INTEL
Hiring continued at a modest pace, but managers Market Activity Volume is the sum of the
found it difficult to find high-skilled and absolute value of each absorption change in the
professional workers. market. It tells us a little more about what
exactly happened to the market behind the
The Bureau of Labor Statistics reported that absorption number. The Market Activity Volume
manufacturing employment of 63,100 employees was 3,654,787 square feet. With only 52,000
in November which was an increase of 800 over feet absorbed, the market seems to be settling
October. Year over year manufacturing is down from the past two quarters, where large positive
by 0.3 percent. Trade, transportation and utilities gains dominated the movement in the market.
employment grew by 5,700 employees from
MARKET ACTIVITY
SALES ACTIVITY
PROPERTY ADDRESS SALES DATE SALE PRICE SIZE SF GRANTOR GRANTEE PRICE / SF TYPE SUBMARKET
6766 Pontius Road November $17,000,000 754,000 Allianz Life Insurance Co KTR Capital Partners $22.55 Ware./Dist. Southeast
3051 Creekside November $18,500,000 737,000 Allianz Life Insurance Co KTR Capital Partners $25.10 Ware./Dist. Southeast
Parkway
6250 Opus Drive October $13,739,300 676,564 CBRE Realty Trust Exeter Property Group $20.31 Ware./Dist. Southeast
5820 Opus Drive November $10,300,000 406,694 Allianz Life Insurance Co KTR Capital Partners $25.33 Ware./Dist. Southeast
1120 Morrison Road October $7,800,000 385,655 Hollingsworth Capital Partner STAG Industrial $20.23 Ware./Dist. East
5765 N Green Pointe November $8,900,000 358,760 Allianz Life Insurance Co KTR Capital Partners $24.81 Ware./Dist. Southeast
Drive
5650 Green Pointe Drive November $7,300,000 270,000 Allianz Life Insurance Co KTR Capital Partners $27.04 Ware./Dist. Southeast
4252 Groves Road December $2,225,000 208,000 4252 Groves Road Equities City of Columbus $10.70 Ware./Dist. Southeast
LEASE ACTIVITY
PROPERTY ADDRESS LEASE SF LESSOR LESSEE ASKING PRICE (NNN) TYPE SUBMARKET
3051 Creekside Parkway 737,471 Allianz Life Insurance Co. Zulily $3.25 Warehouse/Distribution Southeast
3425 Urbancrest Industrial Dr 188,000 Security Capital Industrial Trust Round 2 - Warehouse/Distribution Southwest
3420 Urbancrest Industrial Drive 88,024 ProLogis Trust Exel $2.95 Warehouse/Distribution Southwest
111 Enterprise Drive 65,000 Paragano Nazario P.A.C. $2.70 Warehouse/Distribution Licking
2235 Southwest Boulevard 48,488 Industrial Southpark Owner LLC Cinco Electric $3.10 (MG) R&D/Flex Southwest
P. 2 | COLLIERS INTERNATIONAL

3. RESEARCH & FORECAST REPORT | Q4 2011 | INDUSTRIAL | GREATER COLUMBUS REGION
UPDATE Market Comparisons
INDUSTRIAL MARKET
Net Absorption Construction Asking Rental Rates
SUBMARKET Total SF Vacant SF Vacancy % Current Quarter Year-to-date Current Completions WH/Dist R&D/Flex
CBD 5,907,062 685,817 11.6 30,500 392,858 - - - $6.59
EAST 20,682,243 4,238,914 20.5 1,756 (463,580) - - $3.25 $6.00
FAIRFIELD 6,771,842 617,675 9.1 (293,548) (214,948) - - $4.00 $6.90
LICKING 18,832,930 1,297,016 6.9 65,000 402,874 773,000 105,000 $2.90 -
MADISON 8,148,397 - 0.0 - - - - - -
NORTH 16,747,138 1,589,882 9.5 (22,600) (124,468) - 70,000 $3.18 $5.16
NORTH DELAWARE 9,132,849 1,057,267 11.6 (5,633) (175,016) - - $2.99 $6.75
PICKAWAY 3,550,850 71,900 2.0 - - - - $2.48 -
SOUTHEAST 64,181,757 10,347,192 16.1 (263,857) 920,384 125,000 - $2.62 $3.22
SOUTHWEST 17,683,127 1,156,899 6.5 319,581 468,991 - - $2.92 $4.45
UNION 6,333,817 362,765 5.7 143,800 151,032 - - - $4.33
WEST 35,935,786 3,933,936 10.9 77,162 1,731,891 - - $2.34 $4.31
TOTALS 213,907,798 25,359,263 11.9 52,161 3,090,018 898,000 175,000 $2.69 $4.66
Net Absorption Construction Asking Rental Rates
SUBMARKET Total SF Vacant SF Vacancy % Current Quarter Year-to-date Current Completions By Product Type
R&D/FLEX 20,280,125 3,044,234 15.0 175,908 574,599 - 70,000 $4.66
GENERAL INDUSTRIAL 71,945,139 5,890,939 8.2 147,147 295,603 428,000 - $3.07
WAREHOUSE/ 121,752,534 16,424,090 13.5 (270,894) 2,219,816 470,000 105,000 $2.69
DISTRIBUTION
TOTALS 213,977,798 25,359,263 11.9 52,161 3,090,018 898,000 175,000 $2.99
QUARTERLY COMPARISON AND TOTALS
Net Absorption Construction Asking Rental Rates
QUARTER, YEAR Total SF Vacant SF Vacancy % Current Quarter Year-to-date Current Completions ($)
Q3, 2011 213,802,798 25,411,424 11.9 1,286,321 3,037,857 1,003,000 1,800,000 $2.80
Q2, 2011 211,998,240 26,697,745 12.6 2,113,899 1,751,536 1,992,000 - $2.80
Q1, 2011 211,923,599 28,974,755 13.5 (362,363) (362,363) 1,992,000 - $2.72
Q4, 2010 205,420,829 26,113,915 12.7 743,685 (766,901) 1,575,000 (536,292) $2.57
CONSTRUCTION
McGraw-Hill Construction’s most recent
report showed construction starts
for commercial, industrial, hotel and
institutional projects increased to $50
million in the eight-county region in
September to $50 million, from $42.74
million in September 2010. The year to
date total of nonresidential construction
contracts through the first nine months
of 2011 fell to $784.83 million which is
26 percent below 2010’s $1.07 billion.
COLLIERS INTERNATIONAL | P. 3

4. RESEARCH & FORECAST REPORT | Q4 2011 | INDUSTRIAL | GREATER COLUMBUS REGION
CENTRAL BUSINESS DISTRICT feet of 3800 Groveport Road. Exel vacated
173,457 square feet 6360 Port Road.
The Central Business District (CBD) added
30,500 square feet of positive absorption in the
512 offices in
fourth quarter. The vacancy rate has steadily
Construction continues on Pizzuti’s
125,000-square-foot facility for MBM in
61 countries on
fallen over the past five quarters by 665 basis
points to 11.6 percent. Buckeye Diamond
Groveport at 2240 Creekside Parkway. 6 continents
Logistics took 16,500 square feet at Techsouth
SOUTH United States: 125
C. Canada: 38
The southern submarkets are Pickaway and Latin America: 18
EAST Fairfield counties. Fairfield lost 316,000 square Asia Pacific: 214
feet at 411 Ewing Street. No changes were EMEA: 117
The submarkets comprising eastern Columbus recorded in Pickaway.
are East and Licking County. Construction has • $1.5 billion in annual revenue
been completed for VeePak’s 105,000 square • 978.6 million square feet under
SOUTHWEST management
foot facility as well as the 70,000 square feet of
The Southwest submarket showed absorption of
Pharmaforce’s new R&D/Flex facility. • Over 12,500 professionals
319,581 square feet. The largest gains in
absorption came from Round 2 moving into
Quebec Ontario-based KDC is expected to UNITED STATES:
188,000 square feet of 3425 Urbancrest
complete its 240,000-square-foot building in
Industrial Drive. Exel moved into 88,000 square Columbus
spring 2012. Mississauga, Canada-based Axium
feet of 3420 Urbancrest Industrial Drive from Richard B. Schuen SIOR CCIM
Plastics will complete a 110,000-square-foot CEO | Principal | Columbus
the Southeast submarket. Cinco Electric
facility in spring 2012, employing 165. 8800 Lyra Drive
absorbed 48,488 square feet of 2235 Southwest
Construction continues on Pizzuti’s Suite # 150
Boulevard through purchase. Columbus, Ohio 43240
303,000-square-foot speculative building
TEL +1 614 410 5612
planned for spring 2012. Sonoco is constructing
WEST
a 120,000-square-foot facility and is also
expected to be completed in 2012. The submarkets on the west side of Franklin
Leslie Hobbs
county are West, Madison and Union. The West Marketing and Research Manager
NORTH gained marginally with 3701 Lacon Road, which 8800 Lyra Drive
was sold to an owner/user. Aoki Manufacturing Suite #150
The submarkets comprising northern Columbus Columbus, Ohio, 43240
absorbed 55,470 square feet after purchasing
are North and North Delaware. Both submarkets TEL +1 614 410 5640
1705 Atlas Street.
lost a small amount of occupancy this quarter. In
the North, DRC Automation moved out of 20,540
YEAR END WRAP-UP Jonathan Badgley
square feet at 7830-7832 North Central Drive.
The Columbus industrial market strengthened Research Analyst
Carmel Pharma who had been leasing 13,120 175 South Third Street
square feet at 7029 Huntley was bought out and throughout 2011. Strong leasing in the second Suite # 285
has been closed. In North Delaware, Granite Co. quarter and third quarter of 2,113,899 and Columbus, Ohio 43201
moved out of 15,673 square feet of space. 1,286,321 square feet respectively, drove the TEL +1 614 437 4495
Oxywater moved into 19,140 square feet at 8255 vacancy rate down 160 basis points.
Green Meadows Drive.
In 2010, the market had lost more than 2.5
SOUTHEAST million square feet of industrial space from the
demolitions of a Big Bear distribution facility on This document/email has been prepared by Colliers
The Southeast submarket incurred 263,857 International for advertising purposes. Colliers
3rd Avenue in Grandview and a property located International statistics and data are audited annually and
square feet of negative absorption. 2175 Broehm
at 200 Georgesville Road. In 2011, however, the may result in revisions to previously reported quarterly
Road was purchased by an owner user adding and final year-end figures. Sources include Columbus
market gained 1,975,000 square feet with Dispatch, Business First, Xceligent, and the Wall Street
203,000 to occupancy. 3051 Creekside Parkway
898,000 square feet still under construction in Journal.
has been fully leased by Zulily netting 130,000
2012.
square feet of absorption. 1662 Williams Road
was purchased by an owner user and added
The largest leases of the year were Thirty-One
96,034 square feet to occupancy. 4333 Directors
Gifts leasing 750,000 square feet at 4545 Fisher
Boulevard was purchased by an owner user
Road; Zulily, leasing 737,000 square feet at 3051
adding 43,460 to occupancy.
Creekside Parkway; and Sperian, leasing
500,000 square feet at 6766 Pontius Road.
Significant negative absorption came from Mars
Petcare’s vacancy of more than 700,000 square Accelerating success.
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