This document summarizes Colorado's industrial real estate market trends from 2006-2012. It finds that the market is currently in an expansion phase with declining vacancy rates, net absorption of space, and growing rental rates. The document also profiles major industrial transactions and built-to-suit development projects in the Denver area. It forecasts that vacancy rates will continue dropping in 2013, pushing rental rates higher due to limited speculative construction and increasing demand from tenants seeking long-term leases.

1. Colorado Business Economic
Outlook Forum
Paul Kluck, SIOR
First Vice President
CBRE

2. Regional Distribution: Percentage of U.S. Population Reached Within 500 Miles
CBRE | Page 2

3. Industrial Supply & Demand Trends
Metro Denver
6.0 10.0%
5.0
8.0%
4.0
5.3% 6.0%
3.0
Vacancy
3.2MSF
MSF
4.0%
2.0
2.0%
1.0
0.0%
0.0
2006 2007 2008 2009 2010 2011 2012 YTD
-1.0 -2.0%
Completions Net Absorption Vacancy
CBRE | Page 3

4. Denver Industrial Rental Rates
$7.00
Rental Rate
$6.80
$6.60
$6.40
$6.20
$6.00
$5.80 $5.88
$5.60
$5.40
$5.20
2006 2007 2008 2009 2010 2011 2012 YTD
CBRE | Page 4

5. 2012 Major Industrial Transactions
TENANT / BUYER ADDRESS SF TYPE
CoorsTek 4455 Table Mountain Dr 336,606 Sale
Rocky Mountain Bottle Co. 16200 Table Mountain Pky 227,132 Renewal
Goodwill Industries of Denver 4355 Kearney St 221,677 New Lease
FedEx SmartPost 20321-20431 E 35th Dr 200,000 New Lease
Ford Motor Company 4401 Florence St 186,078 Renewal
OnTrac 5000 Lima St 151,929 New Lease
Tolmar 1201 Cornerstone Dr, Windsor 144,293 Sale
Condit Exhibition 5151 Bannock St 107,524 New Lease
Natural Grocers 4403 Table Mountain Dr 107,134 New Lease
Precision Building Systems 445-475 W 53rd Pl 100,750 Renewal
CBRE | Page 5

6. Current Built-To-Suit Projects
Niagara Water 319,158 SF
Win Wholesale 250,000 SF
Interline Brands 319,158 SF
US Foods 400,000 SF
United Natural Foods 553,757 SF
Leprino Foods 350,000 SF Expansion
Recently Completed
Fiberspar 165,000 SF
Recently Completed
CBRE | Page 6

7. Where are we in the Industrial Cycle?
Phase II - Expansion
Phase II - Expansion Phase III - Hypersupply
Phase III - Hypersupply
•Declining Vacancy •Increasing Vacancy
•New Construction •New Construction
•Rent Growth •Rent Growth Positive
but Declining
•Increasing Vacancy
•Declining Vacancy •More Completions
•Limited Construction
•Rent Growth Negative
•Rent Growth Negative or <Inflation Rate
or <Inflation Rate
Phase I - Recovery
Phase I - Recovery Phase IV - Recession
Phase IV - Recession
CBRE | Page 7

8. FORECAST
• All the signs are pointing toward a
rent spike in 2013
•Vacancy dropping
•Increased Absorption
•Very little, if any, spec development
•Continued BTS activity
•Tenants have been signing longer term leases
to lock in low rates
•Owners have been pushing rents on renewals
CBRE | Page 8

9. Two-Buck Kluck’s 2012
Forecast
TWO
V
The Buck Stops Here!
CBRE | Page 9