Cushman & Wakefield Midyear Chicago Review

1. MIDYEAR 2012:
Office – CBD/Suburban Divide
Industrial – Going Strong
Chicago Economic, Office & Industrial August 2nd 2012
Market Overview

2. Presenters

3. Cushman &
Wakefield
Research
AGENDA
2012 NATIONAL ECONOMIC OUTLOOK - KEN McCARTHY
2012 CHICAGO REGION ECONOMIC OUTLOOK - KEN McCARTHY
NATIONAL OFFICE MARKETS – MARIA SICOLA
NATIONAL INDUSTRIAL MARKETS – MARIA SICOLA
CHICAGO OFFICE MARKETS – SIMONE SCHUPPAN
CHICAGO INDUSTRIAL MARKET – AMANDA ORTIZ
Q&A
CUSHMAN & WAKEFIELD 3

4. NATIONAL AND CHICAGO ECONOMIC OUTLOOK

5. Cushman &
Wakefield
OVERVIEW Research
2012: The year of government deleveraging
■ Reasons for Optimism
– Business, households, investors still cautious, but balance sheets continue to improve
– Labor market fundamentals getting healthier
– Tech, Tech, Tech
■ Reasons for Concern
– Uncertainty about taxes, regulations, financial, political, oil prices, Europe/U.S.
– Election uncertainty
– Fiscal Cliff
– Business and Consumer confidence flagging
– Europe
■ Real Estate Impact
– Cautious users
– Risk Averse
– Tech impacted markets among the best
– Full recovery occurs in 2013
– Supply remains constrained in most markets
■ Chi
Chicago O tl k
Outlook
– Employment slow to recover
– Industrial fundamentals healthier
CUSHMAN & WAKEFIELD 5

6. Cushman &
Wakefield
U.S. GDP GROWTH IN RECOVERIES Research
+14.0%
114
112
110 +9.4%
h=100
Trough
108
106
+6.7%
104
102
100
1 2 3 4 5 6 7 8 9 10 11 12 13
Average Recovery (8 previous) Average Recovery (2 previous) 2009 Recovery
Source: U.S. Bureau of Economic Analysis
CUSHMAN & WAKEFIELD 6

7. Cushman &
Wakefield
U.S. UNEMPLOYMENT RATE Research
11.0%
10.0%
9.0%
rce
Percent of Labor For
8.0%
7.0%
t
6.0%
5.0%
4.0%
4 0%
3.0%
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
CUSHMAN & WAKEFIELD 7

8. Cushman &
U.S. PRIVATE SECTOR EMPLOYMENT GROWTH Wakefield
Research
Monthly Average-Preceding Three Months
250
225.7
200 212.3
183.7
150 158.0
156.7
147.7
Thousands of Persons
100 123.0
111.7
75.0
50
24.7
0
50
-50
-100
-131.3
-150
150
Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12
Source: U.S. Bureau of Labor Statistics
CUSHMAN & WAKEFIELD 8

9. Cushman &
U.S. WEEKLY UNEMPLOYMENT CLAIMS
Wakefield
Research
650,000
600,000
550,000
500,000
450,000
400,000
350,000
300,000
250,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
National Recessions Unemployment Claims Healthy Labor Market
Source: U.S. Bureau of Labor Statistics
CUSHMAN & WAKEFIELD 9

10. Cushman &
EMPLOYMENT CHANGE SINCE FEBRUARY 2010 Wakefield
Research
By Industry Sector
1,450 1,353 1,324 Total Increase: +3.8 mil.
Private Sector: +4.4 mil.
Pi t S 4 4 il
1,250
1,050 900
ersons
850
669
650
housands of Pe
500
450 353
236
250
77
50
Th
-150
-106
-350
-550
-528
528
Source: U.S. Bureau of Labor Statistics
CUSHMAN & WAKEFIELD 10

11. Cushman &
Wakefield
JOBS RECOVERED SINCE TROUGH Research
As a Percent of Jobs Lost
160.0%
160 0%
140.0%
150.9%
131.6%
120.0%
30.3%
13
100.0%
100 0%
91.2%
80.0%
87.4%
71.6%
60.0%
70.5%
59.1%
55.6%
54.1%
%
7
51.3%
%
40.0%
50.5%
%
44.0%
46.2%
41.8%
39.9%
38.9%
31.9%
34.6%
19.3%
29.1%
27.3%
25.1%
20.0%
0.0%
Source: U.S. Bureau of Labor Statistics
CUSHMAN & WAKEFIELD 11

12. Cushman &
Wakefield
INDUSTRIAL DRIVERS Research
Manufacturers’ Shipments
475,000
425,000
Millio of Dollars
375,000
ons
325,000
275,000
1995 1997 1999 2001 2003 2005 2007 2009 2011
National Recessions Mfg Shipments
Source: U.S. Census Bureau, Cushman & Wakefield Research Services CUSHMAN & WAKEFIELD 12

13. Cushman &
TRUCK TONNAGE INDEX Wakefield
Research
125
120
115
110
105
2000=100
100
95
90
85
80
75
1995 1997 1999 2001 2003 2005 2007 2009 2011
National Recessions Truck Tonnage
Source: American Trucking Association, Cushman & Wakefield Research Services CUSHMAN & WAKEFIELD 13

14. Cushman &
Wakefield
U.S. IMPORTS AND EXPORTS OF GOODS Research
Excluding Bulk Items
190,000
170,000
150,000
Millio of Dollars
130,000
ons
110,000
90,000
70,000
1995 1997 1999 2001 2003 2005 2007 2009 2011
National Recessions Exports Plus Imports
Source: U.S. Census Bureau, Cushman & Wakefield Research Services CUSHMAN & WAKEFIELD 14

15. Cushman &
Wakefield
ECONOMIC OVERVIEW & FORECAST Research
Payroll Employment Chicago versus U.S.
138,000
3,925
137,000
137 000
136,000 3,875
135,000
3,825
3 825
134,000
3,775
133,000
132,000 3,725
131,000
3,675
130,000
130 000
US Chicago 3,625
129,000 12/07-2/10 -6.3% -7.3%
2/10-6/12 +3.0% +2.4%
128,000 3,575
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
U.S. (Left Scale) Chicago
Source: U.S. Bureau of Labor Statistics CUSHMAN & WAKEFIELD 15

16. Cushman &
Wakefield
EMPLOYMENT STRUCTURE Research
U.S. versus Chicago
Natural Resources
Information
U.S. 2%
1%
Construction
4% Trade; Transport;
Financial Utilities
6% 20%
Manufacturing
9%
Government
17%
Leisure and
Hospitality
11% Construction Information
Financial 3% 2%
Education and 7%
Professional and
Business Services Health Services
H lhS Trade;
14% 16% Transport;
Manufacturing Utilities
9% 21%
Professional
Leisure and and Business
Hospitality Services
10% 18%
Chicago Education and
Government Health Services
14% 16%
Source: U.S. Bureau of Labor Statistics
CUSHMAN & WAKEFIELD 16

17. Cushman &
ECONOMIC OVERVIEW & FORECAST Wakefield
Research
Jobs Recovered Since February 2010
As a Percent of Jobs Lost
J
50.0%
45.0% 44.0%
40.0%
35.0%
35 0% 31.9%
31 9%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
U.S.
US Chicago
Source: U.S. Bureau of Labor Statistics
CUSHMAN & WAKEFIELD 17

18. Cushman &
Wakefield
CHICAGO EMPLOYMENT CHANGE Research
Since February 2010 , by Industry Sector
75 Total Increase: +92,400
65 Private Sector: +112 400
Pi t S +112,400
57
55 47
Thousands of Persons
45
35 27
P
25 21
16
15 8 8
5
T
-5 0 -3
-15 -7
-25
Source: U.S. Bureau of Labor Statistics CUSHMAN & WAKEFIELD 18

19. Cushman &
Wakefield
EMPLOYMENT FORECAST Research
Payroll Employment Forecast: Chicago
4,000
3,950
Full
3,900 recovery
Q4-15
3,850
3,800
3,750
3,700
3 700
3,650
3,600
3,550
3,500
Source: U.S. Bureau of Labor Statistics, Moody’s Analytics CUSHMAN & WAKEFIELD 19

20. Cushman &
MIDWEST MANUFACTURING INDEX Wakefield
Research
115
110
105
100
95
2007=100
90
85
80
75
70
65
1995 1997 1999 2001 2003 2005 2007 2009 2011
National Recessions Midwest Manufacturing Index
Source: Federal Reserve Bank of Chicago
CUSHMAN & WAKEFIELD 20

21. U.S. OFFICE MARKET

22. Cushman &
U.S. OFFICE MARKET Wakefield
Research
 Leasing activity totaled 29.8 msf in the CBDs; down 29% from 2q 2011
 Suburban leasing was up marginally – by 3msf – to 61.7 msf
 San Francisco and New York remain strong especially in comparison to other markets
 Positive absorption in both CBD and suburban markets
 Rental increases are submarket and asset driven
 Oversupply is not the issue; the issue remains uncertainty in the global economy
 Investment activity remains extremely weak with exception of core and trophy assets but real
estate remains attractive with low Treasury bond yields and volatile stock market
CUSHMAN & WAKEFIELD 22

23. Cushman &
NATIONAL OFFICE Wakefield
Research
CBD & Suburban Leasing Activity
200
180
160
140
et
Millions Square Fee
120
100
80
60
40
20
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2Q12
CBD Suburban
Source: Cushman & Wakefield CUSHMAN & WAKEFIELD 23

24. Cushman &
NATIONAL OFFICE Wakefield
Research
CBD & Suburban Overall Absorption
100
80
60
et
Millions Square Fee
40
20
0
-20
-40
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2Q12
CBD Suburban
Source: Cushman & Wakefield CUSHMAN & WAKEFIELD 24

25. Cushman &
Wakefield
NATIONAL OFFICE Research
Sublease Availabilities
90
80
70
60
et
Millions Square Fee
50
40
30
20
10
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2Q12
CBD Suburban
Source: Cushman & Wakefield CUSHMAN & WAKEFIELD 25

26. NATIONAL OFFICE Cushman &
Wakefield
Construction Completions vs. Overall Vacancy Rates Research
120 24.0%
22.0%
100
20.0%
80 18.0%
16.0%
60
14.0%
40 12.0%
10.0%
20
8.0%
0 6.0%
CBD Completions Suburban Completions CBD Vacancy Rate Suburban Vacancy
Source: Cushman & Wakefield CUSHMAN & WAKEFIELD 26

27. U.S. INDUSTRIAL MARKET

28. Cushman &
U.S. INDUSTRIAL MARKETS Wakefield
Research
Industrial Overall Leasing Activity
400
350
300
million square feet
f
250
200
354.5
326.
322.2
316
306.4
282.9
2
6.6
150
278.8
2
277.9
2
277.3
2
.2
268.8
230.8
100
152.8
50
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD12
*Data as of Second Quarter 2012
Source: Cushman & Wakefield Research
CUSHMAN & WAKEFIELD 28

29. Cushman &
Wakefield
U.S. INDUSTRIAL MARKETS Research
Overall Absorption
200
150
million square feet
100
f
146.0
111.9
94.4
94.4
50
14.2
75.9
13.1
-6.4
39.7
0
-48.9
-50
-125.1
-100
100
-150
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD12
*Data as of Second Quarter 2012
Source: Cushman & Wakefield
CUSHMAN & WAKEFIELD 29

30. Cushman &
Wakefield
U.S. INDUSTRIAL MARKETS Research
Construction Completions versus Overall Vacancy Rates
14.0%
145.0
145 0
12.0%
125.0
million square feet
10.0%
105.0
105 0
f
vacancy
8.0%
85.0
65.0
65 0 6.0%
45.0 4.0%
25.0
25 0 2.0%
5.0 0.0%
96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 YTD12
New Construction Overall Vacancy Rate
*Data as of Second Quarter 2012
Source: Cushman & Wakefield Research
CUSHMAN & WAKEFIELD 30

31. Cushman &
Wakefield
U.S. INDUSTRIAL MARKETS Research
Warehouse Overall Vacancy Rates vs. Rental Rates
$7.00 14.0%
$6.51
$6.50
$6.45
$6.44
$6.00 12.0%
$6.17
$5.89
$5.00 10.0%
$4.96
$4.84
$4.70
$4.64
vacancy
$4.62
$4.62
$4.61
$4.59
$4.58
$4.57
$4.57
$4.56
$/psf
$4.00 8.0%
$
$3.00 6.0%
$2.00 4.0%
$1.00 2.0%
$0.00 0.0%
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
Rental Rates
R t lR t Overall V
O ll Vacancy R t
Rate
*Data as of Second Quarter 2012
Source: Cushman & Wakefield
CUSHMAN & WAKEFIELD 31

32. Cushman &
Wakefield
U.S. INDUSTRIAL MARKETS Research
Warehouse/Distribution Cycle
ORABLE
Slow Growth Accelerating
LANDLORD FAVO
Palm Beach, FL
Chicago, Houston, Inland Empire
LTENANT FAVORABLE
Baltimore, Long Island NY,
PA I-81/I-78 Corridor, Orange County
Philadelphia, Silicon Valley, Seattle
Denver, Greater LA
Sacramento Atlanta, Dallas, Miami
Ft. Lauderdale, Portland, New Jersey
Central Valley CA, Suburban MD
Minneapolis, Orlando, Phoenix, Tampa
eapo s, O a do oe , a pa
T
Oakland, North Bay CA, Jacksonville
Boston, Northern VA
San Diego
Downturn Recovering
Rent still elevated but falling from top of Rent growth accelerating
Ideal for owners of property
market cycle
Falling rents promise future opportunity for tenants
Rent at or near bottom of market cycle Rent growth slowing
Ideal for tenants leasing or seeking to lease property Still landlord favorable but growth is down from peak
*Data as of Second Quarter 2012
Source: Cushman & Wakefield
CUSHMAN & WAKEFIELD 32

33. Cushman &
Wakefield
NATIONAL INDUSTRIAL Research
Second Quarter 2012 Industrial Stats
D irect Overall Annual D irect Under YTD 2012 Total YTD 2012 Total
Total Industrial Vacancy Vacancy Asking Rent Construction Leasing Overall Net
Market Inventory Rate Rate (NNN) Activity Absorption
Greater Los Angeles 1,068,818,710 4.3% 4.6% $6.34 2,327,316 18,872,249 1,288,544
Inland Empire 415,478,185 7.4%
% 7.6%
% $4.53
$ 6,642,648 12,876,110 5,115,073
Orange County 275,686,012 5.5% 5.6% $7.94 26,000 6,324,863 865,070
LOS ANGELES BASIN* 1,745,270,256 5.2% 5.5% $6.12 8,995,964 37,723,218 7,253,356
CH ICAGO 1,148,952,426 8.9% 9.4% $4.10 3,683,246 18,171,803 6,078,532
Central
C t l NJ 327,076,264
327 076 264 8.0%
8 0% 8.6%
8 6% $5.28
$5 28 864,000
864 000 6,635,679
6 635 679 2,789,636
2 789 636
Northern NJ 284,938,891 9.3% 9.9% $6.08 567,639 3,460,048 (1,817,530)
Long Island NY 126,195,121 11.9% 12.5% $6.99 196,000 980,212 (853,249)
NEW YORK/NEW JERSEY 738,210,276 9.2% 9.8% $5.97 1,627,639 11,075,939 118,857
Miami , ,
160,875,806 7.4% 7.4% $5.24 189,906
, 1,433,878
, , 510,664
,
Orlando 105,579,186 12.1% 12.4% $5.35 237,960 2,444,058 633,394
Jacksonville 100,687,468 11.0% 11.1% $3.80 0 609,026 (101,596)
FLORIDA* 659,073,817 8.5% 8.7% $5.31 1,307,935 8,793,529 3,067,552
ATLANTA 516,011,066 9.7% 9.8% $3.75 2,325,047 9,069,777 3,017,391
D ALLAS/FORT WORTH 514,412,336 10.8% 11.2% $4.18 2,955,146 9,766,869 4,075,023
PA I-81/I-78 Distribution Corridor 215,270,850 8.6% 9.1% $3.79 6,044,673 4,250,909 1,997,175
Philadelphia, PA 277,464,546 6.0% 6.4% $4.94 1,348,000 3,229,224 1,903,090
PH ILADELPH IA 492,735,396 7.1% 7.6% $4.33 7,392,673 7,480,133 3,900,265
H OUSTON 353,750,019 7.3% 7.6% $4.70 2,087,404 9,130,399 700,914
PH OENIX 263,298,403 11.7% 12.2% $6.96 237,992 5,233,062 2,528,122
Not all large markets are included on this list. LA Basin: two markets are included in both LA and Orange Counties - LA Basin total reflects adjusted 33
CUSHMAN & WAKEFIELD
figures; Florida total also includes Ft Lauderdale, Tampa, Palm Beach & Pinellas Counties and Lakeland Area.

34. CHICAGO OFFICE MARKET

35. Cushman &
Wakefield 24
CHICAGO CBD Research
Market Trends and Indicators
TOTAL MARKET SIZE = 218.7 MILLION SQUARE FEET
CBD = 123.1 MILLION SQUARE FEET
SUBURBAN = 95.6 MILLION SQUARE FEET
• Overall vacancy dropped 0.7 percentage
points to 14.2% year-over-year.
• New leasing activity slowed during the
second quarter. Year-to-date activity
quarter Year to date 12 Month
M th
equaled approximately 2.4 msf, 41.5% less CHICAGO YTD 2012
Forecast
than the 4.1 msf reported at mid-year 2011.
Total Absorption 639,425 sf
• Investment activity totaled 8.2 msf, more
than d bl th
th double the amount recorded at this
t d d t thi Leasing Activity 2.4 msf
time last year.
Overall Vacancy
14.2%
• Many renewals, which do not count towards Rate
leasing activity, were signed in the second Overall Asking
$31.79
quarter. Rents
R
Under
0 msf
Construction
CUSHMAN & WAKEFIELD 35

36. Cushman &
Wakefield
CHICAGO CBD Research
Class A Direct Vacancy vs. Asking Rental Rates
$40.00 14.0%
12.0%
12 0%
$38.00
$38.45
$38.41
$38.28
$38.28
$38.17
$38.05
$38.02
$38.01
$38.00
$37.78
$37.65
10.0%
$37.63
$37.55
$37.3
5
32
$36.00
8.0%
6.0%
$34.00
4.0%
$32.00
2.0%
2 0%
$30.00 0.0%
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
Class A Asking Rent Class A Vacancy Rate
CUSHMAN & WAKEFIELD 36

37. Cushman &
Wakefield
CHICAGO CBD Research
New Leasing Activity
14
12
10
5.4
Millions Square Feet
8 8.9
4.6
3.6
4.9 3.3
6 6.7 5.0
3.1 2.8 3.9
5.1
51 5.3
53 3.4
34 5.1
51
4 4.3
4.2 4.2 2.2
3.6 3.6
8.7 3.0
2 2.4 2.4
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD
2012
1H 2H
12-year historical average for 1H
CUSHMAN & WAKEFIELD 37

38. Cushman &
Wakefield
CHICAGO CBD Research
Renewal Activity
8.0 70.0%
60.0%
60 0%
6.0
50.0%
5.3
5.1 5.1
5.0
ons
Square Feet in Millio
4.4 4.2 40.0%
4.2
4.0 3.6 3.6
30.0%
3.0
2.4
24 2.4
2.3
20.0%
2.0
1.4 1.4 1.4
1.3
0.9 1.1 1.1
0.8 10.0%
0.6 0.7
0.5
05
0.0 0.0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD
2012
Leasing Activity 1st Half
L i A i i 1 H lf Renewal Activity 1 H lf
R l A i i 1st Half 1st H lf
1 Half renewal activity as % of overall leasing activity
l i i f ll l i i i
CUSHMAN & WAKEFIELD 38

39. Cushman &
Wakefield 26
CHICAGO CBD Research
YTD 2012 Leasing by Industry
g y y
g
Building Legal Services
Construction/General 28%
Contractors
Government 2%
4%
Non-profits/
Associations
5%
Other
5%
Engineers/Architects/
Accountants
6% Business Services
Education Health & 21%
Social Services
6% FIRE Technology
11% 12%
Source: Cushman & Wakefield
NOTE: Includes renewals
CUSHMAN & WAKEFIELD 39

40. Cushman &
Wakefield
CHICAGO CBD Research
Investment Activity
30
25
14.1
20 13.2
Millions Square Feet
15
10
14.2 6.2
12.9
5
1.6 0.3 8.2
4.0
3.1
31 0.2
02 4.0
0 0.9
2006 2007 2008 2009 2010 2011 YTD 2012
1H 2H
CUSHMAN & WAKEFIELD 40

41. Cushman &
CHICAGO CBQuarter Lease Comps
Selected 4th Wakefield 27
D Research
Top Q1 & Q2 2012 Leasing and Sales Transactions
Type Address Submarket Tenant SF Industry
Renewal 321 North Clark River North Foley Lardner 169,000 Legal
330 North Wabash
N hW b h
New River North Latham & Watkins LLP 137,000 Legal
Avenue
SmithBucklin
New 330 North Wabash River North 111,081 Business Services
Corporation
U.S. Securities and
Renewal 175 West Jackson Blvd Central Loop 102,613 Government
Exchange Commission
New 10 South LaSalle Central Loop Chicago Title & Trust 86,207 FIRE
Sales
Price
Address Price Seller Buyer
y Buyer Type
y yp Comments
PSF
(Millions)
Civic Opera, 75% occupied,
20 North Wacker Dr $126 $149 Tishman Speyer Berkley Properties Institutional
renovations planned
500 North Michigan The Macerich New owner plans to
$71 $222 Zeller Realty Group U.S. Investor
Ave Company convert to retail space
350 North Orleans St 96% leased; Chicago Sun-
$228 $190 Vornado Realty Trust Shorenstein Properties U.S. Investor
Times major tenant
Partial sale-leaseback by the
141 West Jackson Blvd GlenStar Properties JV Regional Private
$151 $120 CME Group Chicago Mercantile
USAA Real Estate Investor
Exchange
Foreign Private
Onni Development Loan on building was past
200 North LaSalle St $101 $161 Younan Real Estate
Capital Corp due
Developer
Source: Cushman & Wakefield Research & Real Capital Analytics CUSHMAN & WAKEFIELD 41

42. Cushman &
Wakefield 36
CHICAGO SUBURBAN Research
Market Trends and Indicators
TOTAL MARKET SIZE = 95.6 MILLION SQUARE FEET
• Year-to-date leasing activity is at 2.5 msf, SUBURBAN YTD 12 Month
10.7% higher than the 2.3 msf recorded at CHICAGO 2012 Forecast
mid-year 2011.
Total Absorption
p (
(355,075) sf
, )
• Mid-year investment sale activity increased
to 1.7 msf in 2012 from 1.2 msf in 2011. Leasing Activity 2,539,175 sf
Overall Vacancy
• Direct weighted average asking rents 22.5%
Rate
stood at $21.74 psf b the end of Q2
d $21 74 f by h d f Overall Asking
2012, an increase of 1% from $21.53.Q2 $21.56
Rents
2011. Under
0 msf
Construction
CUSHMAN & WAKEFIELD 42

43. Cushman &
Wakefield
CHICAGO SUBURBAN Research
Class A Direct Vacancy vs. Rental Rates
$30.00 20.5%
$28.00
$28 00
20.0%
$26.67
$26.00
$2
$2
$2
25.52
25.50
25.32
$25.00
19.5%
$24.94
$24.90
$24.76
$24.00
$24.53
$24.45
$24.41
$24.37
$24.28
$24.19
$22.00
19.0%
$20.00
18.5%
$18.00
$18 00
$16.00 18.0%
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
Class A Asking Rent Class A Vacancy Rate
CUSHMAN & WAKEFIELD 43

44. Cushman &
Wakefield
CHICAGO SUBURAN Research
New Leasing Activity
12
10
8
4.9
49
Millions Square Feet
8.9 3.7
6 4.6
2.9 3.1 3.5
3.1
4.9 2.6
4 4.4
44 2.6
26
1.7 3.7 3.8 3.5 3.6 1.9
3.3
2.8 2.9
2 8.7
2.5 2.5
1.9
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD
2012
1H 2H
12-year historical average for 1H
CUSHMAN & WAKEFIELD 44

45. Cushman &
Wakefield
CHICAGO SUBURBAN Research
Renewal Activity
6.0 70.0%
60.0%
60 0%
4.4
4.1 50.0%
4.0 3.8 3.8
3.7 3.6
ons
3.5
Square Feet in Millio
3.3 40.0%
2.9
2.8
2.5
30.0%
1.9
19
2.0
20.0%
1.1 1.1 1.1 1.1
1.0
0.6 0.6 10.0%
0.5
0.4
0.2 0.2 0.2
0.0 0.0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD
2012
Leasing Activity 1st Half
L i A i i 1 H lf Renewal Activity 1 H lf
R l A i i 1st Half 1st H lf
1 Half renewal activity as % of overall leasing activity
l i i f ll l i i i
CUSHMAN & WAKEFIELD 45

46. Cushman &
SUBURBAN CHICAGO Wakefield
Research
38
2012 YTD Leasing by Industry
Building
Construction/General
Printing, Publishing and Manufacturing/Industrial
Contractors
Related 29%
1%
2%
Communications
3%
Technology
4%
Legal
Services
4%
Other
4%
Non-
profits/Associations Education Health & Social
5% Services
FIRE 18%
Business Services
13% 17%
Source: Cushman & Wakefield
NOTE: Includes renewals CUSHMAN & WAKEFIELD 46

47. Cushman &
Selected
CHICAGO SUBURBAN 4th
Quarter Lease Comps Wakefield
Research
33
Top Q1 & Q2 2012 Leasing and Sales Transactions
Type Address Submarket Tenant SF Industry
3800 Golf Rd,
New Atrium Corporate Center Northwest Capital One 158,582 FIRE
Rolling Meadows
75 North Fairway Manufacturing/Industrial
New Central North/Tri-State Carefusion 150,000
Vernon Hills (medical)
3 Parkway North Mondelez International Manufacturing/Industrial
New Central North/Tri-State 105,000
Deerfield (Kraft) (food)
5550 Prairie Stone Parkway American Continental
Renewal Northwest 74,000 Education
Hoffman Estates. University
Columbia Centre III Manufacturing/Industrial
New O’Hare World Kitchen 55,000
Rosemont (kitchenware)
Sales
Address Price Price PSF Seller Buyer Type Comments
(Millions)
100% occupied; CF
4 Parkway North, Institutional
$40.9 $238 John Buck Company Wells Core Office REIT Industries, Lundbeck
Deerfield Investor
main tenants
Continental E
C l Executive National private
N l
$27.5 $123 PacTrust PWA Real Estate
Park, Vernon Hills investor
Caremark Towers I White Oak Realty Partners Regional private
$21 $123 Fulcrum Asset Services
Northbrook JV Syndicated Equities investor
67% leased; building
6400 Shafer Ct, Crossroads Development Regional private
$10.8 $66 Ruben Ybara traded for 3rd time in
Rosemont Partners investor
5 years
Source: Cushman & Wakefield Research & Real Capital Analytics CUSHMAN & WAKEFIELD 47

48. CHICAGO INDUSTRIAL MARKET

49. Cushman &
CHICAGO INDUSTRIAL Wakefield
Research
48
Market Trends and Indicators
TOTAL MARKET SIZE = 1.1 BILLION SQUARE FEET
11
• Leasing activity gaining momentum
YTD 12 Month
• Large leasing transactions have fueled CHICAGO
2012 Forecast
recovery in the region
Total Absorption 6.1 msf
• Asking rental rates have yet to
Leasing Activity 18.2 msf
increase significantly, still favorable
climate for tenants Overall Vacancy
y
9.4%
9 4%
Rate
• New construction is on the rise and
Overall Asking Rents $4.05
some speculative projects have begun
in the Chicago market Under Construction 3.7 msf
CUSHMAN & WAKEFIELD 49

50. Cushman &
CHICAGO INDUSTRIAL Wakefield
Research
48
Market Trends and Indicators
Chicago MSA Employment (% Change)
0.20
0.10
0.00
0 00 • Business sectors impacting industrial
-0.10 activity added jobs in recent months
-0.20
-0.30
• Local economy slowly improving
-0.40
-0.50
-0 50
-0.60
-0.70
Chicago Fed Midwest Manufacturing Index (CFMMI)
Manufacturing Output Indexes % Change from
1 month ago 3 months ago 1 year ago
Chicago Fed Midwest Manufacturing Index (CFMMI) 1.1 2.1 11.0
US Industrial Production-Manufacturing (IPMFG) 0.7 0.8 5.6
CUSHMAN & WAKEFIELD 50