1. Q3 2011 | INDUSTRIAL
GREATER COLUMBUS REGION
INDUSTRIAL TRENDS REPORT
Construct and Expand
INDUSTRIAL MARKET OVERVIEW
The third quarter continued the positive growth from second quarter with more than 1.8 million square
feet of positive absorption. Concerns of a double dip recession and continued economic malaise
persist however as the national, state and local unemployment rates edge upward. The signs in the
market are good however. With 1.8 million square feet in completed construction and 1.8 million
square feet of absorption, the Columbus region industrial real estate market seems to be at the front
end of an expansionary phase. A number of leases this quarter were expansions into larger space by
MARKET INDICATORS tenants who were previously in the market. Continued on page 2...
Q3 Q4
FORECASTS AND REFLECTIONS
2011* 2011**
• There were a few significant institutional sales its 500,000-square-foot facility in New Albany
(sales with property occupancy of 100 percent). (see page 4 for more New Albany construction
VACANCY
Pensyn Investment purchased the 1,272,227 news). Pizzuti is underway with a build-to-suit
NET ABSORPTION square foot facility at 2890 W. Fair Avenue in for MBM in Groveport of approximately 125,000
Lancaster for an undisclosed amount. Cole square feet.
CONSTRUCTION Real Estate Investments purchased the • Tenants are optimistic about growing consumer
RENTAL RATES — — 479,000-square-foot 400 Case Avenue in demand, but cautious in expanding their lease
Newark for $11.9 million from Carey Realty for long terms (5+ years). Companies are still
*Actual change from previous quarter Investments. leary of another slowdown.
**Projected change from previous quarter • Mars Petcare completed its 1.3 million-square-
foot facility in Madison county. Accel completed
RENTAL RATES
PROPERTY TYPE VACANCY RATES OVER COMPLETIONS
RENTAL RATES
Asking rental rates in-
Rates for the Major Product Types
17.0 2,500,000 creased slightly from last
$8
2.5 $2.20 16.0 2,000,000 quarter. Supply has de-
$2.15
15.0 1,500,000
crease over the past two
2.0
$2.10
quarters by 1.6 percent
$2.05 14.0 1,000,000
1.5$6 points, from 13.2 to 11.6
Rental Rate
$2.00
1.0 $1.95
13.0 500,000 percent. Depending on the
$1.90 12.0 0 profile of the vacancy left in
0.5
$4 $1.85 market we may see prices
11.0 (500,000)
0 $1.80 edge even further upward.
3Q07 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 Q2 Q3
08 08 09 09 09 09 10 10 10 10 11 11 11 8.0 (2,000,000)
General Industrial R&D/Flex Warehouse/Dist.
1 5 10 15 20 25 30
Completions Absorptions Total Market Vacancy Rate
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2. RESEARCH & FORECAST REPORT | Q3 2011 | INDUSTRIAL | GREATER COLUMBUS REGION
Delaware REGIONAL INDUSTRIAL ECONOMICS while year over year manufacturing is down by
County
Union The Federal Reserve Bank of Cleveland reports 1.3 percent. Trade, Transportation, and Utilities
County
at least once a quarter in the Federal Reserve’s employment fell by 300 employees from June
North
Beige Book about the economic activity of the and with an increase 1.9 percent year over year.
Licking
Madison
County County fourth district, which includes the Columbus Mining, logging, and Construction decreased by
Metropolitan Statistical Area (MSA). The Beige 500 from June and is up 8.6 percent year over
West East
Book from September 2011 reported that year.
CBD industrial activity in the fourth district remained
stable on the whole. Freight transportation ASKING RATES
Southwest Southeast
Fairfield
executives reported that shipping volume had Average asking rental rates increased slightly
County continued on a slightly upward trend. Some from second quarter. R&D/Flex space increased
Pickaway County respondents reported successfully increasing by $.11, General industrial by $.04, and
shipping rates. Capital outlays have accelerated Warehouse/Distribution by $.14. The bottoming
The Columbus industrial market consists during 2011 compared to other years due to a of prices has likely occurred and we expect that
of 10 suburban submarkets and the
need to replace aging equipment. for the next few quarters we will see slight
Central Business District. The total
inventory for the region is 212 million improvement on lease rates even if the economy
square feet of space Manufacturers reported that production was dips as real estate prices are a lagging indicator.
stable but they indicated that there have been
declines in orders and in backlogs. Expectations MARKET INTEL
called for additional slowing in demand which Market Activity Volume is the sum of the
they attributed to uncertainty and caution. absolute value of each absorption change in the
Manufacturers remain committed to capital market and it tells us a little more about what
spending plans for 2011. Capacity utilization exactly happened to the market behind the
stabilized or declined slightly. Hiring continued at absorption number. The Market Activity Volume
a modest pace but managers are having a was 5,783,960 square feet which is the largest
difficult time finding high-skilled workers. amount of change in one quarter since before
Q1 2009. Net positive absorption in the market,
The Bureau of Labor Statistics reported that 1.8 million square feet, explains only 28 percent
Manufacturing employment of 62,600 employees of the changes that occurred this quarter.
in July was an increase of 5,000 over June
MARKET ACTIVITY
SALES ACTIVITY
PROPERTY ADDRESS SALES DATE SALE PRICE SIZE SF GRANTOR GRANTEE PRICE / SF TYPE SUBMARKET
2890 W Fair Avenue August - 1,272,227 AIC Ventures Pensyn Investments - Ware./Dist. Fairfield
400 Case Avenue July $11,900,000.00 479,000 Carey Realty Investments Cole Real Estate Investments $24.84 Ware./Dist. Licking
6100 Opus Drive August 12 $13,739,280.00 676,155 RT Rickenbacker III LLC Exeter 6250 Opus LLC $20.32 Ware./Dist. Southeast
6360 Port Road August 15 $8,900,000.00 434,120 RT Rickenbacker II LLC Exeter 6360 Port LLC $20.50 Ware./Dist. Southeast
2919-2999 Lewis Center August 16 $12,362,000.00 377,880 ProLogis North American CLPF-Capital Park 4 LP $32.70 Ware./Dist. Southwest
Way Properties Fund I, LLC
2700 international September 16 $3,067,500 152,800 RPH Industrial, LLC Tarrier holdings $20.04 Ware./Dist. West
Street
3811 Twin Creeks Drive September 9 $1,300,000.00 45,000 Bank of America Meritex Twin Creeks LLC $28.89 Flex/R&D West
763 Hague Avenue July 11 $850,000.00 42,017 CREPD LLC Flo Realty Ohio LLC $20.23 Flex/R&D West
222 Stover Drive August 18 $1,150,000.00 34,925 Advantage Bank American Howa Kentucky Inc $32.93 Flex/R&D Delaware
LEASE ACTIVITY
PROPERTY ADDRESS LEASE SF LESSOR LESSEE ASKING PRICE (NNN) TYPE SUBMARKET
3301 Toy Road 292,956 Opus Real Estate Union Supply Co $3.25 Bulk Warehouse Southeast
4555 Creekside Parkway 250,846 Pizzuti Genco $3.25 Ware./Dist. Southeast
2160 McGaw Road 135,000 Columbus 2, LLC Midwest Express, Inc. $1.50 Ware./Dist. Southeast
2400 Spiegel Drive 127,996 TRT-DCT Rickenbacker IV Allrite Logistics $1.00 Ware./Dist. Southeast
3319 Southwest Boulevard 70,800 Kansas City Life Insurance Co. Safety Today Inc $3.25 Bulk Warehouse Southwest
P. 2 | COLLIERS INTERNATIONAL

3. RESEARCH & FORECAST REPORT | Q3 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 5,907,062 716,317 12.1% 97,767 362,358 - - - $4.75
EAST 20,682,243 4,240,670 20.5% (527,826) (465,336) 878,000 500,000 $3.30 $5.50
FAIRFIELD 6,771,842 444,127 6.6% 600 78,600 - - $4.00 $6.90
LICKING 18,727,930 1,362,016 7.3% - 337,874 - - $2.66 -
MADISON 8,148,397 - 0.0% - - - 1,300,000 - -
NORTH 16,747,580 1,623,462 9.7% (124,130) (106,088) - - $3.91 $4.92
NORTH DELAWARE 9,132,849 1,051,634 11.5% (191,668) (169,383) - - $3.00 $6.75
PICKAWAY 3,550,850 71,900 2.0% - - - - $2.48 -
SOUTHEAST 64,181,757 9,316,121 14.5% 1,696,473 1,792,455 125,000 - $2.67 $3.24
SOUTHWEST 17,683,127 1,442,880 8.2% 243,762 70,905 - - $2.79 $3.03
UNION 6,333,817 518,565 8.2% (11,964) 7,232 - - - $5.60
WEST 35,935,786 3,902,168 10.9% 644,976 1,644,189 - - $2.23 $4.59
TOTALS 213,803,240 24,689,860 11.5% 1,827,990 3,552,806 1,003,000 1,800,000 $2.70 $4.34
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 20,210,125 3,116,036 15.4% 107,851 371,516 - - $4.28
GENERAL INDUSTRIAL 71,945,581 6,131,857 8.5% (447,299) 135,456 428,000 500,000 $3.24
WAREHOUSE/ 121,647,534 15,441,967 12.7% 2,167,438 3,045,834 575,000 1,300,000 $2.70
DISTRIBUTION
TOTALS 213,803,240 24,689,860 11.5% 1,827,990 3,552,806 1,003,000 - $2.96
QUARTERLY COMPARISON AND TOTALS
Net Absorption Construction Asking Rental Rates
QUARTER, YEAR Total SF Vacant SF Vacancy % Current Quarter Year-to-date Current Completions ($)
Q2, 2011 211,998,240 26,074,727 12.3 2,103,147 1,640,784 1,992,000 - $2.80
Q1, 2011 211,923,599 27,972,230 13.2 (468,993) (468,993) 1,992,000 - $2.72
Q4, 2010 205,420,829 26,113,915 12.71 743,685 (766,901) 1,575,000 (536,292) $2.57
Q3, 2010 205,957,121 27,183,626 13.20 313,420 (1,381,820) 170,000 - $2.93
CONSTRUCTION
McGraw-Hill Construction reported
that construction starts for commercial,
industrial, hotel and institutional projects
slipped 46 percent in the eight-county
region for July to less than $69.5
million, from $127.9 million in July 2010.
Very little speculative construction has
occurred in the market in the last two
years except for a recent project Pizzuti
is working on in New Albany. It seems
that the market reacted quickly to the
bad economic news from April through
June 2011. The slow down of economic
growth will keep speculative projects at
bay for some time but it wiil likely not
deter well-funded, build-to-suit projects.
COLLIERS INTERNATIONAL | P. 3

4. RESEARCH & FORECAST REPORT | Q3 2011 | INDUSTRIAL | GREATER COLUMBUS REGION
CENTRAL BUSINESS DISTRICT Right Logistics leased 127,996 square feet at
2400 Spiegel Drive; SB Capital expanded into
The Central Business District (CBD) has now
recorded a full of year positive absorption since
96,053 more square feet of 4458 Alum Creek 512 offices in
third quarter 2010 by adding 97,767 square feet.
Drive. Typifying the expansionary nature of the
third quarter, Union Supply Co. has signed a
61 countries on
This brings the vacancy rate down to 12.1
percent. Leasing was driven by various leases at
lease for 292,956 square feet at 3301 Toy Road 6 continents
in Groveport. The company is moving its
the Techsouth facility.
warehousing operation from 6300 Commerce United States: 125
Drive, where it leased 127,720 square feet. Canada: 38
EAST Latin America: 18
Asia Pacific: 214
The submarkets comprising eastern Columbus Looking forward to the fourth quarter, there are EMEA: 117
are East and Licking County. Construction has signs of a continuation of third quarter’s strong
wrapped up for the 500,000-square-foot Accel • $1.5 billion in annual revenue
leasing. Exel Logistics received a tax credit to
facility at 9000 Smith’s Mill Road, New Albany. expand into a second operation at 2120 Creekside • 978.6 million square feet under
management
Parkway where they will employ 275 all told.
New Albany’s industrial construction is prolific: • Over 12,500 professionals
Vee Pak’s construction on a 105,000 square foot Pizzuti has begun construction on a
building continues and is expected to finish in 150,000-square-foot facility for MBM in UNITED STATES:
fourth quarter 2011. KDC, Quebec Ontario-based, Groveport at 2240 Creekside Parkway. Columbus
is expected to complete its 240,000-square-foot Richard B. Schuen SIOR CCIM
in spring 2012 and it will house 200 employees. SOUTH CEO | Principal | Columbus
Axium Plastics, Mississauga Canada-based, will The southern submarkets are Pickaway and 8800 Lyra Drive
complete a 110,000-square-foot facility in spring Suite # 150
Fairfield counties. Both markets saw very little Columbus, Ohio 43240
2012 employing 165. Pizzuti has begun a movement this quarter and maintained their very TEL +1 614 410 5612
speculative 303,000-square-foot building low vacancy rates.
planned for spring 2012 with tenants Alene
Candles and Jeye’s already signed on. Sonoco is
SOUTHWEST Leslie Hobbs
contructing a 120,000-square-foot facility and is Marketing and Research Manager
The Southwest submarket added to last quarters
expected to be completion in 2012. 8800 Lyra Drive
negative absorption of 117,548 square feet with
Suite #150
roughly 60,000 square feet more of negative Columbus, Ohio, 43240
Net absorption in the East was negative largely
absorption. The largest vacancy was Valley TEL +1 614 410 5640
due to Acatel-Lucent’s departure from 6200
Towing at 2200 Southwest Boulevard.
Broad Street, leaving more than 400,000 square
feet available. Jonathan Badgley
WEST
Research Analyst
Licking county vacancy remained unchanged. 10 The submarkets on the west side of Franklin 175 South Third Street
county are West, Madison, and Union. The West Suite # 285
of the 11 properties with vacancies in Licking
Columbus, Ohio 43201
have vacancies of 50,000 square feet. These was the strongest performing sector with more
TEL +1 614 437 4495
contiguous spaces bode well for strong leasing than 600,000 square feet of net absorption.
Leading leases were signed by Virginia Beverage
NORTH Distribution for 155,720 at 3600 Sullivant Road
and by Tarrier Foods which purchased the
The submarkets comprising the northern
152,800-square-foot 2700 International Street. This document/email has been prepared by Colliers
Columbus are North and North Delaware. Both
Union and Madison counties had negligible and International for advertising purposes. Colliers
submarkets lost a moderate amount of International statistics and data are audited annually and
no change respectively. In Madison, the may result in revisions to previously reported quarterly
occupancy 124,130 and 191,668 respectively.
construction of Mars Petcare’s 1.3 million square and final year-end figures. Sources include Columbus
Dispatch, Business First, Xceligent, and the Wall Street
foot facility has been completed. Journal.
SOUTHEAST
The Southeast submarket absorbed more than CSX formally announced what has been
1.8 million square feet with net absorption of speculated, the firm will expand its intermodal
more than 1.6 million square feet. Genco leased distribution center in the west. The expansion of
more than 250,000 square feet at 4555 $59 million will continue to bolster central Ohio’s
Creekside Plaza; Midwest Express leased strong logistics position.
135,000 square feet at 2160 Mcgaw Road; All
Accelerating success.
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