Industrial Market Report Inland Empire - CA

PREPARED BY

Kimberly Wright Economic Development Manager Inland Empire Industrial

INDUSTRIAL MARKET REPORT

Market Key Statistics 2 Leasing 3 Rent 7 Construction 9 Under Construction Properties 11 Sales 13 Sales Past 12 Months 15 Economy 17 Market Submarkets 19 Supply & Demand Trends 22 Rent & Vacancy 24 Sale Trends 26

1/20/2021 Copyrighted report licensed to Riverside County EDA - 1126743 Overview Inland Empire Industrial

12 Mo Deliveries in SF 12 Mo Net Absorption in SF Vacancy Rate 12 Mo Rent Growth 15.6 M 21.3 M 3.7% 5.6%

The Inland Empire's industrial market has grown in vacancies are projected to rise over the next four tandem with the expansion of the nation's e-commerce quarters while growth declines in CoStar's Base Case industry and the nation's supply-chain infrastructure. scenario. While deliveries have moderated in recent quarters, the stifling pace of construction places the metro fourth in The combination of prominent tenants that could provide terms of deliveries over the past 12 months among the steady cash flow, such as Amazon, Walmart, Target, and 390 metros in the U.S. tracked by CoStar. General Pacific, and proximity to the Southern California megaregional economy has attracted institutional New tenants can often only find new industrial buildings investors from across the world in recent years. to lease or buy, as availability in existing product is rare. However, institutional investors have pulled back since While roughly 67% of the 21.7 million SF currently under mid-March as many are reassessing market conditions construction is available for lease, most deliveries in the in the pandemic environment. The largest source of past two years have either preleased before completion sales activity in 20Q2 came from owner-users selling or leased within months of completion. However, their properties to raise capital, while 19Q3 sales activity because the labor market continues to struggle is primarily composed of small and mid-sized deals.

KEY INDICATORS

Net Absorption Under Current Quarter RBA Vacancy Rate Market Rent Availability Rate Deliveries SF SF Construction Logistics 561,970,772 3.8% $0.75 5.9% 147,472 296,438 20,288,288 Specialized Industrial 99,327,806 2.7% $0.91 3.7% 116,143 0 770,624 Flex 15,159,023 5.5% $1.18 6.6% (58,242) 0 0 Market 676,457,601 3.7% $0.79 5.6% 205,373 296,438 21,058,912

Historical Forecast Annual Trends 12 Month Peak When Trough When Average Average Vacancy Change (YOY) -0.8% 6.6% 4.1% 12.5% 2009 Q3 3.7% 2020 Q4 Net Absorption SF 21.3 M 17,573,450 16,673,635 29,227,616 2007 Q3 (876,021) 2009 Q1 Deliveries SF 15.6 M 18,441,832 18,540,238 33,486,214 2006 Q4 1,345,120 2011 Q3 Rent Growth 5.6% 3.8% 4.6% 10.1% 2016 Q4 -9.0% 2009 Q4 Sales Volume $2.9 B $1.9B N/A $6.2B 2019 Q3 $489.2M 2001 Q2

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Leasing volume has hardly slowed since mid-March, Cardinal Health all moved into new buildings this size in when the pandemic first induced business closures. 2020. Even in the under-construction segment of the Logistics and e-commerce companies have been taking market, companies Amazon and Uline have buildings the most space in recent months, but the tenant base is leased. highly diversified across industries. Many of the largest retailers in the nation have large warehouses and The metro has one of the lowest vacancy rates among distribution centers in the Inland Empire, and only a few markets with more than 300 million SF, partly because a have vacated industrial space recently, such as Pier 1 few large tenants provide stability. Amazon currently Imports vacating 991,100-SF (although that space occupies 16 industrial properties across the metro with a immediately leased to TJ Maxx). total of 15 million SF. The company announced plans to hire 100,000 distribution workers throughout the nation to Vacancies are lowest in buildings with 600,000 SF or support the surge in online shopping caused by the more. One of the few assets this size that was available pandemic. In the Airport Area Submarket, California for an extended period was leased in March by All Ways Steel Industries operates out of a 4-million-SF plant that Logistics. The 1.1-million-SF distribution building in was built for Kaiser Steel in 1942; a steel and steel- Rialto was vacated and sold before 2019 by Toys R Us products manufacturing industry cluster has formed and underwent renovations. Amazon, XPO Logistics, around the plant. General Pacific and Target also occupy Sam's Club, LG Electronics, Kimberly-Clark, and 1.5 million SF each in the Airport Area Submarket.

NET ABSORPTION, NET DELIVERIES & VACANCY

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VACANCY RATE

AVAILABILITY RATE

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12 MONTH NET ABSORPTION SF IN SELECTED BUILDINGS

Net Absorption SF Building Name/Address Submarket Bldg SF Vacant SF 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 12 Month West Ontario Logistics Center Airport Area 1,197,339 0 0 0 0 0 1,197,339 1110 W Merrill Ave San Bernardino 1,106,124 0 0 0 0 0 1,106,124 Sycamore Canyon Bus Park Moreno Valley/Perris 1,012,995 0 0 0 0 0 1,012,995 Duke Perris Logistics Center Moreno Valley/Perris 1,008,646 0 0 0 0 0 1,008,646 Crossroads Logistics Center Beaumont/Hemet 2,560,000 0 0 0 0 0 1,004,836 Rialto Fullfillment Center San Bernardino 1,264,102 0 0 0 0 0 983,189 Ontario Ranch Logistics Center Airport Area 1,180,908 0 0 0 0 0 918,483 Patterson Logistics Center Moreno Valley/Perris 912,338 0 0 0 0 0 912,338 AllianceCalifornia San Bernardino 1,032,072 0 0 0 0 0 802,721 4501 Patterson Ave Moreno Valley/Perris 800,218 0 0 0 0 0 800,218 Knox Logistics Center II Moreno Valley/Perris 753,230 0 0 0 0 0 753,230 Colony Commerce Center Airport Area 700,280 0 700,280 0 0 0 700,280 Rider Business Center Moreno Valley/Perris 643,263 0 0 0 0 0 643,263 Rialto Fulfillment Center San Bernardino 615,310 0 0 0 0 0 615,310 Link Industrial Building 1 Riverside 606,112 0 0 0 0 0 606,112 Watson Industrial Park Chino/Chino Hills 565,925 0 565,925 0 0 0 565,925 Mira Loma Dist Center Riverside 565,598 0 0 0 0 0 565,598 Subtotal Primary Competitors 16,524,460 0 1,266,205 0 0 0 14,196,607 Remaining Inland Empire Market 659,933,141 24,987,474 (1,060,832) 0 0 0 7,677,811 Total Inland Empire Market 676,457,601 24,987,474 205,373 0 0 0 21,874,418

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TOP INDUSTRIAL LEASES PAST 12 MONTHS

Building Name/Address Submarket Leased SF Qtr Tenant Name Tenant Rep Company Leasing Rep Company

4810 S Hellman Ave Airport Area 1,245,049 Q1 20 Uline, Inc. CBRE Colliers International;D…

1110 W Merrill Ave San Bernardino 1,106,124 Q1 20 All-Ways Logistics - -

9180 Alabama St Redlands/Loma Linda 1,079,236 Q3 20 Go Plus Logistics CBRE Colliers International

5170 S Archibald Ave Airport Area 1,000,930 Q4 20 Restoration Hardware - DAUM Commercial Re…

3000 E Philadelphia St Airport Area 991,100 Q3 20 TJ Maxx - Colliers International

4413 Patterson Ave Moreno Valley/Perris 912,338 Q1 20 XPO Logistics Transportation Prop… JLL

11640 Harrell St Riverside 886,055 Q4 20 Custom Goods - CBRE

1950 Palmetto Ave Redlands/Loma Linda 809,338 Q4 20 Geodis Logistics CBRE Cushman & Wakefield

4501 Patterson Ave Moreno Valley/Perris 800,218 Q2 20 Amazon - Colliers International

2221 E Remington Ave Airport Area 700,280 Q4 20 US ELogistics Lee & Associates Cushman & Wakefield

3350 Redlands Ave Moreno Valley/Perris 643,263 Q3 20 Skechers USA CBRE CBRE

3388 S Cactus Ave San Bernardino 615,310 Q1 20 Amazon - JLL

22150 Goldencrest Dr * Moreno Valley/Perris 613,174 Q3 20 United Natural Foods Inc. Savills -

11101 Etiwanda Ave * Airport Area 611,968 Q2 20 Allied West Paper Corp Colliers International JLL

3155 Universe Dr * Riverside 606,925 Q3 20 ACT Fulfillment, Inc Lee & Associates C… CBRE

11200 Iberia St Riverside 606,112 Q3 20 Amazon - CBRE

5331 S Carpenter Ave Airport Area 589,012 Q3 20 DHL - Cushman & Wakefield

8975 Remington Ave Chino/Chino Hills 565,925 Q4 20 Logistics Plus Foremost Commerci… Lee & Associates Com…

1590 N Tamarind Ave San Bernardino 543,400 Q1 21 Subaru - Lee & Associates Com…

22750 Cactus Ave Moreno Valley/Perris 522,772 Q3 20 Harbor Freight Newmark;Newmark… Newmark;Newmark Kni…

16380 Euclid Ave * Chino/Chino Hills 522,267 Q1 20 Dart Container Corporation - Colliers International

12050 Agua Mansa Rd San Bernardino 505,906 Q3 20 Colgate- Palmolive CBRE JLL

13133 Innovation Way * Mojave River Valley 504,274 Q1 20 United Furniture Industries The Bradco Compan… CBRE

11015 Hopkins St * Riverside 455,455 Q4 20 Olivet International, Inc. Savills -

2163 S Riverside Ave San Bernardino 447,190 Q2 20 XPO Logistics - DAUM Commercial Re…

1464 W Merrill Ave San Bernardino 436,650 Q1 20 Kuehne + Nagel Inc - Exeter Property Group

17783 Indian St Moreno Valley/Perris 436,350 Q2 20 Toolots, Inc. Kidder Mathews JLL;Lee & Associates…

20123 Harvill Ave Moreno Valley/Perris 423,665 Q3 20 American Standard JLL Lee & Associates Com…

9687 Transportation Way Airport Area 414,415 Q2 20 Fungyun, Inc. CBRE CBRE

1642 W Miro Way San Bernardino 411,330 Q4 20 - - CBRE

13479 Valley Blvd Airport Area 410,800 Q1 20 Customs Goods LLC Colliers International -

13472 Marlay Ave * Airport Area 406,800 Q4 20 Tech Data Corp - -

5885 Sierra Ave Airport Area 403,000 Q3 20 KGP Telecommunications… Lee & Associates;Le… JLL

5990 N Cajon Blvd San Bernardino 392,983 Q2 20 Shipmonk - CBRE

1920 W Baseline Rd San Bernardino 373,771 Q4 20 Ricoh USA Newmark Colliers International;Le…

5491 E Francis St Airport Area 363,000 Q3 20 - - Cushman & Wakefield

10780 Redwood Ave Airport Area 358,291 Q1 21 - - Industrial Capital Advis…

1580 Eastridge Ave * Moreno Valley/Perris 355,182 Q1 20 GEODIS Logistics - Colliers International

11296 Harrell St Riverside 353,361 Q1 20 Weber Logistics - -

6010 N Cajon Blvd San Bernardino 332,231 Q1 20 ShipMonk Foremost Commerci… CBRE *Renewal

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The metro's long-run of robust rents gains have slowed an apples-to-apples comparison, rents in the Inland to 5.6% over the past four quarters, compared to 6.8% a Empire in logistics buildings with at least 200,000 SF are year ago and 8.3% two years ago. Yet despite strong about 35% higher than they are in the nation. gains for several years, the average rent in the Inland Empire is about one-third the average rents in L.A. and Submarkets located outside of the metro's core Orange County. demonstrate some resistance towards rent escalation. These include Coachella Valley and Twentynine Palms, The market's average rent of $9.40/SF appears near the where rent growth over the past four quarters trails the National Index of $9.00/SF, but local inventory is highly metro. Meanwhile, Moreno Valley/Perris is one of the top skewed towards large logistics buildings where rents submarkets in terms of rent growth and is also the tend to be lower as a result of economies of scale. For fastest growing submarkets.

MARKET RENT GROWTH (YOY)

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MARKET RENT PER SQUARE FEET

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The Inland Empire's construction boom demonstrated Commerce Center located in the southern edge of the signs of slowing in 2020. Net deliveries total less than 16 Airport Area Submarket. Most of the buildings, which million SF for the year—the lowest amount of deliveries range in size from 41,200 SF to 1 million SF, are since 2013. And for a brief period between April and available for lease. However, Restoration Hardware August, few properties broke ground. However, leased the 1 million SF building in December 2020 and construction starts have sharply increased in the last few Wieland Metal Services leased a 133,320-SF building in months—positioning the Inland Empire for a bounce- May 2020. back year of development. As is typical for the Inland Empire in recent years—roughly 67% of space under The growth in online shopping and an increased effort to construction is available for lease. improve efficiency at the last mile of distribution help make the metro a popular location for industrial Most construction underway is concentrated in three development. About 25 million SF of industrial space submarkets: Airport Area; Moreno Valley/Perris; and San delivered annually from 2017 to 2019, and 2021 is Bernardino. One of the largest spec developments positioned to reach that same milestone. underway is the nine-building, 1.7 million SF Colony

DELIVERIES & DEMOLITIONS

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SUBMARKET CONSTRUCTION

Under Construction Inventory Average Building Size

No. Submarket Bldgs SF (000) Pre-Leased SF (000) Pre-Leased % Rank All Existing Under Constr Rank 1 Airport Area 52 9,797 5,487 56.0% 3 66,674 188,396 2 2 San Bernardino 24 4,293 401 9.3% 5 66,465 178,871 4 3 Moreno Valley/Perris 23 2,447 193 7.9% 6 157,056 106,401 5 4 Riverside 9 1,651 0 0% 8 46,253 183,428 3 5 Redlands/Loma Linda 3 1,376 1,079 78.4% 2 83,330 458,723 1 6 Corona/Eastvale 9 904 0 0% 8 31,030 100,406 6 7 Chino/Chino Hills 10 252 32 12.9% 4 54,449 25,191 10 8 South Riverside 5 142 0 0% 8 20,657 28,312 9 9 Upland/Montclair 4 140 7 5.0% 7 13,253 35,096 8 10 Coachella Valley 1 58 58 100% 1 15,792 57,678 7 All Other 0 - - - 23,337 - Totals 140 21,059 7,257 34.5% 49,373 150,421

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Properties Square Feet Percent of Inventory Preleased 139 19,980,496 3.0% 30.9%

UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner Ontario Ranch Logistics… REDA 1 1,245,049 1 Jan 2020 Sep 2021 4810 S Hellman Ave Clarion Partners 9180 Alabama St Duke Realty Corporation 2 1,079,236 - Sep 2020 Apr 2021 Duke Realty Corporation Bldg 1 - 3 1,026,000 1 Dec 2020 Jan 2022 6120 Clinker Dr - Colony Commerce Cente… CapRock Partners 4 1,000,930 1 Jun 2019 Feb 2021 5170 S Archibald Ave Ivanhoe Cambridge Link Industrial Building 2 - 5 517,903 - Oct 2019 Feb 2021 11100 Iberia St Space Center, Inc Bldg 1 Goodman North America 6 508,002 1 Jul 2018 Feb 2021 NWC Oleander and Santa… Goodman North America Building 5 - 7 453,020 1 Nov 2020 Nov 2021 NW corner of Jurupa Ave… -

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UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner Building 4 - 8 453,020 1 Nov 2020 Nov 2021 NW corner of Jurupa Ave… - 1 Ramona Expy - 9 429,202 1 Jan 2021 May 2021 Bryan Blasingame Airport Commerce Center - 10 406,710 - Sep 2020 Feb 2021 2264 E 6th St - 1070 S Waterman Ave - 11 393,704 1 Jan 2020 Feb 2021 Crow Holdings Industrial Slover Distribution Center - 12 344,360 1 Jan 2020 Feb 2021 18025 Slover Ave Trammell Crow Company 21500 Harvill Ave Rockefeller Group 13 333,572 1 Oct 2020 Aug 2021 Rockefeller Group 19416 Cajon Blvd Alere Property Group 14 321,496 1 Jan 2020 Mar 2021 Alere Property Group 10965 Banana Ave - 15 297,161 1 Apr 2020 Feb 2021 - Val Verde Logistics Center Rockefeller Group 16 289,407 1 Oct 2020 May 2021 19319 Harvill Ave Rockefeller Group 2600 Cajon Blvd - 17 277,822 1 May 2020 Feb 2021 Western Realco Bldg 1 - 18 263,665 1 Aug 2020 Jun 2021 14935 Limonite Ave The Dyt Family Trust 1645 W Renaissance Pky - 19 258,737 1 Sep 2019 Mar 2021 Dermody Properties, Inc. 2380 W Baseline Ave Pacific Industrial 20 255,152 1 Jul 2019 Feb 2021 Crow Holdings Industrial 1330 Nandina Ave - 21 251,366 - Jun 2020 Mar 2021 Black Creek Group 1648 Ashley Way - 22 225,353 1 Jan 2020 Apr 2021 Transwestern Development Com… 24665 Nandina Ave First Industrial Realty Trust 23 221,859 2 Oct 2020 Jun 2021 - 9425 Nevada Expansion - 24 215,979 1 Oct 2020 Jun 2021 9425 Nevada St - Bldg 1 - 25 212,680 1 Jul 2019 Mar 2021 NEC Heacock St & Hemlo… Xebec Development Co Building 6 - 26 212,420 1 Nov 2020 Nov 2021 NW corner of Jurupa Ave… - South Cucamonga Distri… Alere Property Group 27 210,703 1 Dec 2020 Sep 2021 1656 S Cucamonga Ave Alere Property Group 1532 S Vineyard Ave - 28 198,858 1 Oct 2020 Dec 2021 -

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A large footprint of nationally recognized tenants and an industrial property investments in recent years, although abundance of new industrial product generally drives foreign-origin buyers briefly pulled in 2019. Foreign- strong capital flows to the Inland Empire. Institutional origin buyers often pay top-dollar for industrial assets, investors largely pulled back from acquisitions from mid- one reason why price appreciation by SF averages 10% March through September 2020 as a result of economic annually since 2014 based on CoStar's Market Price. uncertainty, but activity is now rising. Unlike Los Angeles and Orange County, where industrial In contrast to recent activity, a flurry of private equity, properties can trade for their value-add potential or primarily through entity sales and portfolio trades, flooded sometimes even complete redevelopment purposes, the market in 2019 and early 2020, with sales volume most large industrial buildings trade for immediate cash growing by more than 50% from $3.8 billion in 2018 to flow. For example, Kohlberg Kravis Roberts acquired a $5.9 billion in 2019. While 2020 volume is lower, many 305,000-SF distribution building in Riverside with a 5- Inland Empire industrial properties are involved in acre lot in September for $59.2 million. The distribution Stockbridge Capital Group's $2 billion portfolio building was recently leased to Amazon. acquisition from Hillwood Development Corporation in early December. Inland Empire industrial assets are priced above the national average and on an income-capitalization basis A notable proportion of properties sold since 20Q2 were they are some of the most expensive properties in the owned by users and involve leaseback agreements. For nation. CoStar's same-store, property-level cap rate example, Kohl's sold two of their distribution center to series measures 4.7%, compared to 6.7% in the nation. Brookfield Asset Management in May for $195 million Yet most sales, as measured by transaction counts, ($126/SF). Similarly, DPI Specialty Foods sold its involve 1 & 2 Star properties, where cap rates are about 252,800-SF distribution building in Ontario to Truist for 200 basis points higher. Sales of 1 & 2 Star properties $65.3 million ($258/SF). Amrapur Overseas sold its accounted for about 15% of total transaction volume in 210,000 warehouse in Corona to for $37 million 2020, but have an overwhelming weight on the ($176/SF). At the same time, there has also been a few transaction cap rate, which is 5.7% for all sales over the large sales involving owner-users as buyers. For past 12 months. example, Locktek—a home furniture manufacturer—acquired a 361,300-SF distribution Same-store, property level price appreciation remained building in Riverside for $44.4 million ($123/SF). The high at 8.1% year-over-year in 20Q4, but prices are seller was a joint venture involving Artemis Real Estate projected to grow by just 3.8% over the next four Partners and Dedeaux Properties who developed the quarters in CoStar's Base Case Scenerio due to the building in 2019. impact that recent job losses have on vacancies and rents. The Inland Empire has become a global market for

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SALES VOLUME & MARKET SALE PRICE PER SF

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Sale Comparables Avg. Cap Rate Avg. Price/SF Avg. Vacancy At Sale 551 5.7% $148 16.8%

SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS

Sales Attributes Low Average Median High Sale Price $91,925 $6,590,105 $2,050,000 $129,061,278

Price/SF $5.59 $148 $165 $6,667

Cap Rate 3.5% 5.7% 5.3% 12.1%

Time Since Sale in Months 0.2 5.7 4.8 12.0

Property Attributes Low Average Median High Building SF 743 53,795 13,519 1,032,072

Ceiling Height 8' 20'8" 18' 42'

Docks 0 6 0 186

Vacancy Rate At Sale 0% 16.8% 0% 100%

Year Built 1920 1992 1990 2021

Star Rating 2.3

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RECENT SIGNIFICANT SALES

Property Sale

Property Name - Address Rating Yr Built Bldg SF Vacancy Sale Date Price Price/SF Cap Rate Bldg 1 1 - 2019 1,012,995 100% 2/13/2020 $129,061,278 $127 4.0% 6275 Lance Dr Gateway South Building 1 2 - 2008 970,075 0% 5/26/2020 $110,563,500 $114 - 825 E Central Ave Kohl's 3 - 2002 575,000 0% 5/26/2020 $84,437,000 $147 - 890 E Mill St Dairy Fresh 4 - 1978 252,800 0% 11/2/2020 $65,266,582 $258 - 601 Rockefeller Ave 13472 Marlay Ave 5 - 1998 406,800 0% 10/29/2020 $61,650,000 $152 -

7227 Central Ave 6 - 1977 305,000 0% 9/30/2020 $56,622,447 $186 -

10965 Banana Ave 7 - 2021 297,161 0% 1/7/2021 $54,000,000 $182 -

989 S Cucamonga Ave 8 - 2016 130,500 0% 12/16/2020 $47,408,599 $363 -

10156 Live Oak Ave 9 - 2020 236,912 100% 12/7/2020 $46,814,000 $198 -

Bldg 2 10 - 2019 361,346 100% 9/17/2020 $44,389,000 $123 - 6075 Lance Dr Bldg 1 11 - 1999 226,388 0% 11/3/2020 $44,245,438 $195 - 13379 Jurupa Ave Bldg B 12 - 2014 210,345 0% 6/3/2020 $37,017,500 $176 4.5% 1560 E 6th St Rider Distribution Center 13 - 2019 354,810 100% 7/22/2020 $31,932,900 $90 - 251 E Rider St 4039 State St 14 - 2020 139,000 0% 12/7/2020 $31,535,463 $227 -

Gateway South Building 5 15 - 2019 143,327 0% 1/21/2020 $31,500,000 $220 3.7% 945 S Sunnyside Ave 9520 Santa Anita Ave 16 - 2003 200,000 0% 6/12/2020 $30,504,000 $153 -

13232 Valley Blvd 17 - 2007 210,930 0% 9/28/2020 $30,400,000 $144 -

4600 E Wall St 18 - 2021 178,523 100% 8/24/2020 $30,253,263 $169 -

Oakmont Renaissance R… 19 - 2020 156,500 100% 12/7/2020 $29,872,553 $191 - 2520 W Baseline Rd 1901 W Center St 20 - 2020 232,578 0% 9/2/2020 $29,704,000 $128 -

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The Inland Empire is one of the largest logistics hubs in distribution facilities in the Inland Empire, as well. the United States due to its proximity to the ports in Los While the economy may recover rapidly over the short- Angeles and Long Beach and its relatively-affordable term, there are a few impediments to more pronounced land. Housing is also affordable by Southern California long-term growth, such as a slower growth in the standards and many residents commute west and south region's population and limited high-wage job to job nodes Los Angeles, Orange County, and San opportunities. Diego. The metropolitan area comprises two counties—Riverside and San Bernardino— and most The Inland Empire's population grew by 0.6% from July developed areas are in one of the 52 incorporated cities. 2019 to July 2020—per the state's department of finance, and population growth has averaged about 1% similar The coronavirus pandemic caused many businesses to growth since 2010. While the growth rate is above the shut down and lay off workers during 20Q2. The national average, the metropolitan area had population recovery has been intermittent, with recent rising growth rates of around 3% in the 1980s, 1990s, and coronavirus cases driving state mandates to further early 2000s. The structural change in population growth restrict outdoor activity. One of the industries most from decades ago to now has contributed to less impacted by the pandemic is tourism, but tourism is a development across most property types (outside of relatively small industry outside of Palm Springs, Big industrial), and the economy is no longer structured Bear, and Temecula. The unemployment rate has grown around growth-related sectors (i.e., there is a smaller to almost 8%, whereas a year ago, it reached historic proportion of construction and real estate workers and a lows under 4%. larger proportion of health care workers). The logistics sector is expected to continue to grow, There are limited opportunities for high-wage sector partly because the pandemic has increased online workers. There are no Fortune 500 companies spending. Amazon is a major employer in the Inland headquartered in the metro. Empire, and third-party logistics companies have been growing over the past year. Many retailers have

INLAND EMPIRE EMPLOYMENT BY INDUSTRY IN THOUSANDS

Current Level 12 Month Change 10 Year Change 5 Year Forecast

NAICS Industry Jobs LQ Market US Market US Market US Manufacturing 94 0.7 -6.73% -3.58% 0.96% 0.66% 1.24% 0.42% Trade, Transportation and Utilities 385 1.4 -2.09% -3.14% 3.55% 0.86% 1.61% 0.66% Retail Trade 171 1.1 -6.15% -2.75% 0.90% 0.48% 1.80% 0.64% Financial Activities 45 0.5 -0.10% -1.26% 0.97% 1.25% 0.49% 0.74% Government 246 1.1 -4.31% -4.10% 0.80% -0.24% 1.07% 0.81% Natural Resources, Mining and Construction 106 1.3 -2.43% -3.27% 5.90% 2.56% 1.76% 1.13% Education and Health Services 251 1.1 -2.21% -3.95% 4.45% 1.55% 2.57% 1.90% Professional and Business Services 149 0.7 -5.13% -4.50% 1.71% 1.88% 1.40% 1.63% Information 10 0.4 -11.52% -5.89% -2.85% 0.08% 3.33% 2.11% Leisure and Hospitality 133 1.0 -24.72% -19.67% 0.68% 0.21% 6.18% 4.60% Other Services 38 0.7 -17.86% -6.88% -0.49% 0.31% 4.18% 1.41% Total Employment 1,457 1.0 -6.16% -5.56% 2.39% 0.92% 2.15% 1.49% Source: Oxford Economics LQ = Location Quotient

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YEAR OVER YEAR JOB GROWTH

Source: Oxford Economics

DEMOGRAPHIC TRENDS

Current Level 12 Month Change 10 Year Change 5 Year Forecast

Demographic Category Metro US Metro US Metro US Metro US Population 4,723,238 330,515,344 1.1% 0.5% 1.0% 0.6% 1.2% 0.5% Households 1,405,918 123,543,391 1.1% 0.4% 1.0% 0.7% 1.1% 0.5% Median Household Income $72,443 $67,407 6.6% 5.7% 3.1% 3.0% 1.4% 2.2% Labor Force 2,063,309 161,543,594 -1.1% -1.7% 1.1% 0.5% 0.6% 0.7% Unemployment 10.5% 9.0% 6.6% 5.4% -0.3% 0% - - Source: Oxford Economics

POPULATION GROWTH LABOR FORCE GROWTH INCOME GROWTH

Source: Oxford Economics

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INLAND EMPIRE SUBMARKETS

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SUBMARKET INVENTORY

Inventory 12 Month Deliveries Under Construction

No. Submarket Bldgs SF (000) % Market Rank Bldgs SF (000) Percent Rank Bldgs SF (000) Percent Rank 1 Airport Area 3,330 222,025 32.8% 1 19 3,436 1.5% 2 52 9,797 4.4% 1 2 Beaumont/Hemet 430 11,392 1.7% 11 0 0 0% - 0 - - - 3 Chino/Chino Hills 998 54,340 8.0% 5 3 1,234 2.3% 4 10 252 0.5% 7 4 Coachella Valley 1,008 15,918 2.4% 10 1 12 0.1% 11 1 58 0.4% 10 5 Corona/Eastvale 1,135 35,219 5.2% 6 10 380 1.1% 7 9 904 2.6% 6 6 Mojave River Valley 937 22,202 3.3% 9 1 45 0.2% 10 0 - - - 7 Moreno Valley/Perris 543 85,281 12.6% 3 29 6,286 7.4% 1 23 2,447 2.9% 3 8 Redlands/Loma Linda 351 29,249 4.3% 7 1 74 0.3% 9 3 1,376 4.7% 5 9 Riverside 1,588 73,449 10.9% 4 13 1,221 1.7% 5 9 1,651 2.2% 4 10 Riverside Outlying 31 395 0.1% 13 0 0 0% - 0 - - - 11 San Bernardino 1,406 93,449 13.8% 2 13 3,001 3.2% 3 24 4,293 4.6% 2 12 San Bernardino Outlying 17 256 0% 15 0 0 0% - 0 - - - 13 South Riverside 1,117 23,074 3.4% 8 5 128 0.6% 8 5 142 0.6% 8 14 Twentynine Palms 69 388 0.1% 14 0 0 0% - 0 - - - 15 Upland/Montclair 741 9,821 1.5% 12 6 405 4.1% 6 4 140 1.4% 9

SUBMARKET RENT

Market Rent 12 Month Market Rent QTD Annualized Market Rent

No. Submarket Per SF Rank Growth Rank Growth Rank 1 Airport Area $0.82 9 5.9% 4 8.6% 4 2 Beaumont/Hemet $0.74 12 5.4% 6 4.9% 12 3 Chino/Chino Hills $0.83 7 5.8% 5 8.5% 5 4 Coachella Valley $1.18 1 4.3% 12 4.3% 13 5 Corona/Eastvale $0.90 6 4.9% 9 5.1% 11 6 Mojave River Valley $0.77 11 5.2% 8 6.7% 7 7 Moreno Valley/Perris $0.64 15 6.3% 1 8.6% 3 8 Redlands/Loma Linda $0.65 14 6.0% 2 9.1% 1 9 Riverside $0.78 10 5.3% 7 5.5% 10 10 Riverside Outlying $0.82 8 -1.2% 15 3.2% 14 11 San Bernardino $0.69 13 5.9% 3 9.1% 2 12 San Bernardino Outlying $0.96 5 4.8% 10 7.6% 6 13 South Riverside $1.01 3 3.8% 14 1.0% 15 14 Twentynine Palms $1.09 2 4.2% 13 6.5% 8 15 Upland/Montclair $1.01 4 4.4% 11 6.1% 9

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SUBMARKET VACANCY & NET ABSORPTION

Vacancy 12 Month Absorption

No. Submarket SF Percent Rank SF % of Inv Rank Construc. Ratio 1 Airport Area 7,056,243 3.2% 5 4,677,104 2.1% 3 0.3 2 Beaumont/Hemet 325,775 2.9% 3 868,573 7.6% 6 - 3 Chino/Chino Hills 641,436 1.2% 1 1,092,776 2.0% 5 0.8 4 Coachella Valley 436,763 2.7% 2 85,609 0.5% 10 0.1 5 Corona/Eastvale 1,456,122 4.1% 7 1,460,049 4.1% 4 0.3 6 Mojave River Valley 935,202 4.2% 9 298,175 1.3% 9 0.1 7 Moreno Valley/Perris 3,749,634 4.4% 10 8,517,300 10.0% 1 0.6 8 Redlands/Loma Linda 2,539,863 8.7% 14 (2,288,288) -7.8% 15 - 9 Riverside 2,130,794 2.9% 4 455,698 0.6% 7 2.5 10 Riverside Outlying 24,220 6.1% 12 14,622 3.7% 12 - 11 San Bernardino 3,733,417 4.0% 6 6,896,773 7.4% 2 0.3 12 San Bernardino Outlying - - - 15,822 6.2% 11 - 13 South Riverside 1,530,991 6.6% 13 (569,253) -2.5% 14 - 14 Twentynine Palms 20,255 5.2% 11 (11,865) -3.1% 13 - 15 Upland/Montclair 406,759 4.1% 8 361,328 3.7% 8 0.5

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OVERALL SUPPLY & DEMAND

Inventory Net Absorption

Year SF SF Growth % Growth SF % of Inv Construction Ratio 2025 767,577,888 17,575,636 2.3% 16,132,487 2.1% 1.1 2024 750,002,252 18,118,217 2.5% 16,768,722 2.2% 1.1 2023 731,884,035 18,220,115 2.6% 17,204,337 2.4% 1.1 2022 713,663,920 15,751,675 2.3% 15,952,919 2.2% 1.0 2021 697,912,245 21,751,082 3.2% 15,782,441 2.3% 1.4 YTD 676,457,601 296,438 0% 205,373 0% 1.4 2020 676,161,163 16,633,567 2.5% 23,134,979 3.4% 0.7 2019 659,527,596 25,055,512 3.9% 24,841,161 3.8% 1.0 2018 634,472,084 25,145,642 4.1% 27,111,660 4.3% 0.9 2017 609,326,442 25,197,726 4.3% 17,706,868 2.9% 1.4 2016 584,128,716 19,033,129 3.4% 24,520,064 4.2% 0.8 2015 565,095,587 21,248,067 3.9% 19,691,571 3.5% 1.1 2014 543,847,520 20,919,343 4.0% 20,385,134 3.7% 1.0 2013 522,928,177 9,988,510 1.9% 18,045,618 3.5% 0.6 2012 512,939,667 5,769,952 1.1% 6,574,103 1.3% 0.9 2011 507,169,715 2,330,924 0.5% 16,477,534 3.2% 0.1 2010 504,838,791 576,242 0.1% 11,247,048 2.2% 0.1 2009 504,262,549 8,461,819 1.7% 477,184 0.1% 17.7

SPECIALIZED INDUSTRIAL SUPPLY & DEMAND

Inventory Net Absorption

Year SF SF Growth % Growth SF % of Inv Construction Ratio 2025 102,394,483 579,879 0.6% 404,331 0.4% 1.4 2024 101,814,604 597,704 0.6% 511,564 0.5% 1.2 2023 101,216,900 601,134 0.6% 573,256 0.6% 1.0 2022 100,615,766 470,709 0.5% 433,070 0.4% 1.1 2021 100,145,057 817,251 0.8% 469,908 0.5% 1.7 YTD 99,327,806 0 0% 116,143 0.1% 0 2020 99,327,806 315,265 0.3% 978,254 1.0% 0.3 2019 99,012,541 871,332 0.9% 502,151 0.5% 1.7 2018 98,141,209 52,437 0.1% 141,540 0.1% 0.4 2017 98,088,772 397,528 0.4% (222,950) -0.2% - 2016 97,691,244 (14,422) 0% 503,842 0.5% - 2015 97,705,666 (482,632) -0.5% 138,809 0.1% - 2014 98,188,298 922,828 0.9% 926,585 0.9% 1.0 2013 97,265,470 (55,404) -0.1% 2,319,134 2.4% - 2012 97,320,874 (465,093) -0.5% 565,398 0.6% - 2011 97,785,967 (127,714) -0.1% 677,852 0.7% - 2010 97,913,681 54,291 0.1% (127,437) -0.1% - 2009 97,859,390 205,170 0.2% (1,251,053) -1.3% -

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LOGISTICS SUPPLY & DEMAND

Inventory Net Absorption

Year SF SF Growth % Growth SF % of Inv Construction Ratio 2025 650,021,583 16,995,042 2.7% 15,769,913 2.4% 1.1 2024 633,026,541 17,519,766 2.8% 16,291,257 2.6% 1.1 2023 615,506,775 17,618,228 2.9% 16,655,156 2.7% 1.1 2022 597,888,547 15,280,399 2.6% 15,582,530 2.6% 1.0 2021 582,608,148 20,933,814 3.7% 15,406,752 2.6% 1.4 YTD 561,970,772 296,438 0.1% 147,472 0% 2.0 2020 561,674,334 16,318,302 3.0% 22,105,341 3.9% 0.7 2019 545,356,032 24,187,580 4.6% 24,470,976 4.5% 1.0 2018 521,168,452 25,093,205 5.1% 26,890,672 5.2% 0.9 2017 496,075,247 24,776,810 5.3% 17,739,165 3.6% 1.4 2016 471,298,437 19,047,551 4.2% 23,870,834 5.1% 0.8 2015 452,250,886 21,730,699 5.0% 19,343,775 4.3% 1.1 2014 430,520,187 20,040,010 4.9% 19,150,931 4.4% 1.0 2013 410,480,177 9,994,628 2.5% 15,259,540 3.7% 0.7 2012 400,485,549 6,235,045 1.6% 5,637,854 1.4% 1.1 2011 394,250,504 2,458,638 0.6% 15,556,265 3.9% 0.2 2010 391,791,866 621,482 0.2% 11,356,053 2.9% 0.1 2009 391,170,384 7,994,343 2.1% 1,971,771 0.5% 4.1

FLEX SUPPLY & DEMAND

Inventory Net Absorption

Year SF SF Growth % Growth SF % of Inv Construction Ratio 2025 15,161,822 715 0% (41,757) -0.3% - 2024 15,161,107 747 0% (34,099) -0.2% - 2023 15,160,360 753 0% (24,075) -0.2% - 2022 15,159,607 567 0% (62,681) -0.4% - 2021 15,159,040 17 0% (94,219) -0.6% - YTD 15,159,023 0 0% (58,242) -0.4% - 2020 15,159,023 0 0% 51,384 0.3% 0 2019 15,159,023 (3,400) 0% (131,966) -0.9% - 2018 15,162,423 0 0% 79,448 0.5% 0 2017 15,162,423 23,388 0.2% 190,653 1.3% 0.1 2016 15,139,035 0 0% 145,388 1.0% 0 2015 15,139,035 0 0% 208,987 1.4% 0 2014 15,139,035 (43,495) -0.3% 307,618 2.0% - 2013 15,182,530 49,286 0.3% 466,944 3.1% 0.1 2012 15,133,244 0 0% 370,851 2.5% 0 2011 15,133,244 0 0% 243,417 1.6% 0 2010 15,133,244 (99,531) -0.7% 18,432 0.1% - 2009 15,232,775 262,306 1.8% (243,534) -1.6% -

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OVERALL RENT & VACANCY

Market Rent Vacancy

Year Per SF Index % Growth Vs Hist Peak SF Percent Ppts Chg 2025 $0.96 202 1.6% 23.1% 32,829,771 4.3% 0.1% 2024 $0.95 199 2.3% 21.2% 31,403,893 4.2% 0.1% 2023 $0.93 194 4.4% 18.4% 30,070,529 4.1% 0% 2022 $0.89 186 7.6% 13.4% 29,072,420 4.1% -0.1% 2021 $0.82 173 5.4% 5.4% 29,284,144 4.2% 0.5% YTD $0.79 165 0.4% 0.4% 24,987,474 3.7% 0% 2020 $0.78 164 5.5% 0% 24,896,409 3.7% -0.9% 2019 $0.74 156 7.2% -5.2% 29,890,203 4.5% -0.1% 2018 $0.69 145 8.7% -11.6% 29,677,772 4.7% -0.5% 2017 $0.64 134 9.5% -18.6% 31,643,790 5.2% 1.0% 2016 $0.58 122 10.1% -25.7% 24,499,923 4.2% -1.1% 2015 $0.53 111 9.5% -32.5% 30,193,392 5.3% 0.1% 2014 $0.48 101 8.0% -38.4% 28,636,896 5.3% -0.1% 2013 $0.45 94 5.7% -42.9% 28,102,687 5.4% -1.7% 2012 $0.42 89 2.7% -46.0% 36,159,795 7.0% -0.2% 2011 $0.41 86 -0.2% -47.4% 36,963,946 7.3% -2.8% 2010 $0.41 86 -5.0% -47.3% 51,110,556 10.1% -2.1% 2009 $0.43 91 -9.0% -44.6% 61,781,892 12.3% 1.4%

SPECIALIZED INDUSTRIAL RENT & VACANCY

Market Rent Vacancy

Year Per SF Index % Growth Vs Hist Peak SF Percent Ppts Chg 2025 $1.12 186 1.7% 22.5% 3,416,624 3.3% 0.1% 2024 $1.10 183 2.4% 20.4% 3,246,359 3.2% 0.1% 2023 $1.07 178 4.6% 17.5% 3,164,166 3.1% 0% 2022 $1.03 171 7.7% 12.4% 3,142,081 3.1% 0% 2021 $0.95 158 4.3% 4.3% 3,109,430 3.1% 0.3% YTD $0.91 151 -0.2% -0.2% 2,639,132 2.7% -0.1% 2020 $0.91 152 4.8% 0% 2,755,275 2.8% -0.7% 2019 $0.87 145 5.5% -4.6% 3,418,264 3.5% 0.3% 2018 $0.83 137 7.8% -9.5% 3,049,083 3.1% -0.1% 2017 $0.77 127 9.3% -16.1% 3,138,186 3.2% 0.6% 2016 $0.70 116 9.4% -23.2% 2,517,708 2.6% -0.5% 2015 $0.64 106 8.1% -29.9% 3,035,972 3.1% -0.6% 2014 $0.59 98 7.6% -35.1% 3,657,413 3.7% 0% 2013 $0.55 91 5.2% -39.7% 3,661,170 3.8% -2.4% 2012 $0.52 87 2.4% -42.7% 6,035,708 6.2% -1.0% 2011 $0.51 85 -0.7% -44.0% 7,066,199 7.2% -0.8% 2010 $0.51 86 -5.4% -43.6% 7,871,765 8.0% 0.2% 2009 $0.54 90 -9.6% -40.4% 7,690,037 7.9% 1.5%

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LOGISTICS RENT & VACANCY

Market Rent Vacancy

Year Per SF Index % Growth Vs Hist Peak SF Percent Ppts Chg 2025 $0.92 209 1.6% 23.3% 28,385,834 4.4% 0.1% 2024 $0.91 206 2.3% 21.4% 27,172,461 4.3% 0.1% 2023 $0.89 201 4.4% 18.6% 25,955,905 4.2% 0% 2022 $0.85 192 7.6% 13.6% 25,004,463 4.2% -0.2% 2021 $0.79 179 5.6% 5.6% 25,311,915 4.3% 0.5% YTD $0.75 170 0.5% 0.5% 21,521,541 3.8% 0% 2020 $0.75 169 5.8% 0% 21,372,575 3.8% -0.9% 2019 $0.71 160 7.8% -5.4% 25,651,996 4.7% -0.3% 2018 $0.66 149 9.0% -12.2% 25,935,392 5.0% -0.6% 2017 $0.60 136 9.7% -19.5% 27,732,859 5.6% 1.1% 2016 $0.55 124 10.4% -26.6% 21,042,205 4.5% -1.3% 2015 $0.50 113 9.9% -33.5% 26,072,022 5.8% 0.3% 2014 $0.45 102 8.3% -39.5% 23,685,098 5.5% -0.1% 2013 $0.42 95 5.9% -44.2% 22,796,019 5.6% -1.5% 2012 $0.40 89 2.9% -47.3% 28,060,931 7.0% 0% 2011 $0.38 87 0.1% -48.8% 27,463,740 7.0% -3.4% 2010 $0.38 87 -4.8% -48.8% 40,561,367 10.4% -2.8% 2009 $0.40 91 -8.9% -46.2% 51,296,468 13.1% 1.3%

FLEX RENT & VACANCY

Market Rent Vacancy

Year Per SF Index % Growth Vs Hist Peak SF Percent Ppts Chg 2025 $1.44 151 1.5% 22.3% 1,027,313 6.8% 0.3% 2024 $1.42 148 2.2% 20.5% 985,073 6.5% 0.2% 2023 $1.39 145 4.4% 17.9% 950,458 6.3% 0.2% 2022 $1.33 139 7.5% 12.9% 925,876 6.1% 0.4% 2021 $1.24 129 5.0% 5.0% 862,799 5.7% 0.6% YTD $1.18 124 0.3% 0.3% 826,801 5.5% 0.4% 2020 $1.18 123 3.0% 0% 768,559 5.1% -0.3% 2019 $1.14 120 3.5% -2.9% 819,943 5.4% 0.8% 2018 $1.10 116 5.9% -6.2% 693,297 4.6% -0.5% 2017 $1.04 109 5.8% -11.4% 772,745 5.1% -1.1% 2016 $0.99 103 7.1% -16.2% 940,010 6.2% -1.0% 2015 $0.92 96 6.1% -21.7% 1,085,398 7.2% -1.4% 2014 $0.87 91 4.9% -26.3% 1,294,385 8.5% -2.3% 2013 $0.83 87 4.2% -29.7% 1,645,498 10.8% -2.8% 2012 $0.79 83 0.6% -32.5% 2,063,156 13.6% -2.5% 2011 $0.79 83 -2.9% -33.0% 2,434,007 16.1% -1.6% 2010 $0.81 85 -6.7% -31.0% 2,677,424 17.7% -0.7% 2009 $0.87 91 -8.8% -26.0% 2,795,387 18.4% 3.1%

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OVERALL SALES

Completed Transactions (1) Market Pricing Trends (2)

Year Deals Volume Turnover Avg Price Avg Price/SF Avg Cap Rate Price/SF Price Index Cap Rate 2025 ------$202.01 277 4.5% 2024 ------$198.47 273 4.5% 2023 ------$192.77 265 4.5% 2022 ------$182.41 251 4.5% 2021 ------$164.77 226 4.6% YTD 17 $97M 0.1% $18,568,000 $163.98 4.0% $157.08 216 4.7% 2020 553 $3.1B 4.0% $6,635,001 $143.43 5.8% $154.89 213 4.8% 2019 914 $5.9B 7.5% $9,456,928 $132.32 5.7% $143.35 197 4.8% 2018 847 $4.8B 6.6% $9,634,218 $127.82 5.5% $133.36 183 4.9% 2017 1,007 $3.1B 5.2% $5,322,839 $108.83 6.1% $119.61 164 5.0% 2016 824 $2.4B 4.8% $4,495,164 $94.52 6.1% $109.57 151 5.1% 2015 920 $3B 7.6% $5,274,636 $90.69 6.0% $97.52 134 5.3% 2014 710 $1.7B 5.1% $3,720,078 $73.52 7.3% $85.88 118 5.7% 2013 786 $1.8B 6.2% $4,124,488 $71.60 7.0% $76.57 105 5.9% 2012 765 $1B 4.7% $2,776,626 $65.25 7.2% $71.45 98 6.1% 2011 584 $1.3B 4.8% $3,698,622 $62.08 6.8% $68.10 94 6.3% 2010 487 $1.3B 5.9% $4,123,635 $53.88 7.9% $65.36 90 6.5% (1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period. (2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

SPECIALIZED INDUSTRIAL SALES

Completed Transactions (1) Market Pricing Trends (2)

Year Deals Volume Turnover Avg Price Avg Price/SF Avg Cap Rate Price/SF Price Index Cap Rate 2025 ------$212.47 288 4.6% 2024 ------$208.55 283 4.6% 2023 ------$202.36 275 4.6% 2022 ------$191.25 259 4.7% 2021 ------$172.57 234 4.8% YTD 3 $3M 0% $1,240,000 $108.42 - $165.13 224 4.9% 2020 138 $456.1M 3.3% $3,616,944 $140.94 5.8% $163.24 221 4.9% 2019 188 $583.9M 5.8% $5,194,932 $119.10 7.1% $150.62 204 4.9% 2018 190 $453.7M 4.5% $4,394,379 $120.96 6.5% $137.89 187 5.0% 2017 217 $394.8M 4.0% $3,102,266 $124.85 6.0% $123.25 167 5.1% 2016 159 $314.4M 4.5% $3,029,611 $87.28 6.7% $110.72 150 5.3% 2015 207 $384.9M 4.9% $2,929,489 $101.43 6.0% $97.34 132 5.6% 2014 153 $233.7M 4.5% $2,265,464 $66.44 8.4% $85.06 115 5.9% 2013 161 $161M 3.6% $2,032,025 $68.70 7.3% $75.59 103 6.2% 2012 173 $198.4M 5.4% $2,364,597 $65.51 8.5% $69.99 95 6.5% 2011 108 $233.6M 4.7% $3,133,385 $57.02 6.5% $66.59 90 6.7% 2010 103 $184.6M 4.4% $2,559,804 $50.61 8.4% $64.62 88 6.9% (1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period. (2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

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LOGISTICS SALES

Completed Transactions (1) Market Pricing Trends (2)

Year Deals Volume Turnover Avg Price Avg Price/SF Avg Cap Rate Price/SF Price Index Cap Rate 2025 ------$197.63 276 4.5% 2024 ------$194.19 271 4.5% 2023 ------$188.64 264 4.5% 2022 ------$178.53 250 4.5% 2021 ------$161.29 225 4.6% YTD 13 $94M 0.2% $22,900,000 $166.74 4.0% $153.63 215 4.7% 2020 373 $2.6B 4.1% $8,177,224 $144.06 5.7% $151.40 212 4.7% 2019 628 $5.2B 7.8% $11,450,290 $134.53 5.6% $140.15 196 4.8% 2018 585 $4.3B 7.0% $11,862,240 $128.43 5.5% $130.80 183 4.8% 2017 693 $2.6B 5.4% $6,382,222 $106.85 6.2% $117.34 164 5.0% 2016 568 $2B 4.8% $5,279,676 $95.51 5.8% $107.96 151 5.1% 2015 608 $2.5B 8.2% $6,811,618 $89.01 5.8% $96.28 135 5.3% 2014 495 $1.5B 5.2% $4,333,956 $74.14 6.7% $84.91 119 5.6% 2013 537 $1.6B 6.9% $4,989,614 $71.68 6.9% $75.73 106 5.9% 2012 510 $806.2M 4.5% $3,055,990 $64.25 7.0% $70.77 99 6.1% 2011 403 $1.1B 4.8% $4,232,787 $63.02 7.0% $67.45 94 6.3% 2010 328 $1.1B 6.4% $5,054,909 $54.00 7.3% $64.57 90 6.5% (1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period. (2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

FLEX SALES

Completed Transactions (1) Market Pricing Trends (2)

Year Deals Volume Turnover Avg Price Avg Price/SF Avg Cap Rate Price/SF Price Index Cap Rate 2025 ------$302.23 262 5.0% 2024 ------$297.28 258 5.0% 2023 ------$289.07 250 5.0% 2022 ------$273.80 237 5.0% 2021 ------$247.96 215 5.1% YTD 1 $0.00 0% - - - $237.23 206 5.2% 2020 42 $53.8M 2.8% $2,055,610 $135.26 7.4% $234.82 203 5.2% 2019 98 $106M 7.3% $1,749,088 $110.69 5.5% $219.37 190 5.3% 2018 72 $98M 5.6% $2,509,655 $135.24 4.3% $202.33 175 5.3% 2017 97 $66.9M 7.2% $1,511,932 $105.52 5.4% $183.24 159 5.4% 2016 97 $76.1M 8.0% $1,447,502 $101.36 7.0% $164.54 143 5.6% 2015 105 $123.5M 9.6% $1,681,519 $95.74 7.2% $146.46 127 5.9% 2014 62 $52.8M 5.7% $1,666,318 $96.73 7.5% $128.94 112 6.3% 2013 88 $48M 5.3% $1,126,307 $80.35 7.2% $115.65 100 6.5% 2012 82 $36.5M 4.8% $1,227,994 $96.36 6.6% $107.68 93 6.8% 2011 73 $36.4M 4.1% $887,048 $71.17 - $103.11 89 7.0% 2010 56 $28.2M 2.5% $836,449 $81.20 8.8% $100.76 87 7.1% (1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period. (2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

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