Maryland Page 2 st 1 Q 2020 Industrial Report Greater Baltimore Industrial Overview

The Covid-19 pandemic has sent shock waves through the commercial real estateA industryverage Aandski fewng R knowent - IwhatNDU theSTR futureIAL holds. Most, however, have concluded that industrial product will remain one of the least impactedTotal Ma rassetket, D classesirect S herepace in, N MarylaNN Rend.nt Some are even hypothesizing that industrial real estate values could rise in the near term asYE investors 2016 reallocate capital previously$5.13 intended for investment in challenged categories such as office, retail or hospitality. YE 2017 $4.52 Pre-pandemic, first quarter sale and Pageleasing 2 fundamentals in the region were impressive.YE 201 The8 Maryland suburbs saw$4. 65 average asking rents climb above $8.00 NNN per square foot for the first time, with vacancyYE rates 2019 dropping to nearly 5 percent$6.07. The Maryland suburbs saw nearly a million squareGreater feet Baltimore of positive Industrial net absorption Overview over just 1stthree Q 2020months. $5.74 Institutional investors were extremely active as buyers in the greater Baltimore market in the first quarter, with four major Average Asking Rent - INDUSTRIAL Historical Vacancy Rate - INDUSTRIAL transactions occurring north of $50 million. The average price per square foot among those four sales was $116 per square foot and Total Market, Direct Space, NNN Rent Total Market all four sales transacted at a price of $95 per square foot of better. YE 2016 $5.13 YE 2016 9.4% Just a year ago, it was unfathomable thatYE 201 the7 Baltimore market would see$4.52 this kindYE of pricing.2017 In the 18 months prior 8.2to May% Page2019, 2 only two out of fourteen relevant comparableYE 201 industrial8 sales in the Baltimore$4.65 region YEtransacted 2018 over $95 per square foot8.3.% YE 2019 $6.07 YE 2019 6.2% GreaterGreater Baltimore Baltimore Industrial Overview Industrial 1st QOverview 2020 $5.74 1st Q 2020 6.3% Average Asking Rent - INDUSTRIAMarketL InventoryHistorica –l VFlataca ncy Rate - INDUSTRIAL Historic Net Absorption - INDUSTRIAL Total Market, Direct Space, NNN RConstructionent Tota lPipeline Market – Flat Total Market, Direct Space YE 2016 $5.Vacancy13 RateYE 201 – Down6 9.4% YE 2016 2,860,383 YE 2017 $4.52Net AbsorptionYE 201 –7 Up 8.2% YE 2017 2,190,839 YE 2018 $4.Average65 QuotedYE 2018 Rent – Up 8.3% YE 2018 5,361,170 YE 2019 $6.07 YE 2019 6.2% YE 2019 2,470,394 1st Q 2020 $5.74Grea ter B1stalt iQm 2020ore B y the Numbers 6.3% 1st Q 2020 2,500,657 GreaterHistorical Va cBaltimoreancy Rate - IND USTRIAL HistoriEcx Nisetitn gA Ibnsvoenrptotriyo n - ITNoDtaUl VSaTcRaInAcyL YYTeDa Nr-eTt o-Date MaArkvetra Igned Aicdavteortriss ed Total Market Total Market, Direct Space( %) Absorption Rate (NNN, Direct) ByYE 201the6 Numbers 9.4F%le x YE 2016 49,955,580 2,860,3837.6% (151,838) $11.36 YE 2017 8.2W%a rehouYEse 201 7 186,365,417 2,190,8396.3% 2,500,657 $5.74 YE 2018 8.3% YE 2018 5,361,170 Notable FYEirs t201 Qu9a rter Lease Transa2,470,394ctions YE 2019 6.2% st Trends1st Q 2020 YTD 6.3% Top1st Lease Q 2020 Transactions2,500,657 1 Q 2020 Property Tenant SF Transaction Type Submarket Historic Net Absorption - INDUSTRPIrAop8416L er tKelsoYye a Driver-To-Date MarkTeetn Ianndtic aAmazontors S508,171F New Lease BaltimoreTran Countysac tEastion Type Submarket 3501 E Biddle Street SH Bell Company 167,454 Renewal Baltimore NE Total Market, Direct Space 18797600 Lamonte Assateague Drive Avenue Kubik, Inc.Pepsi 72,800141,403 New Lease RouteNew 1 Corridor Lease BWI/Anne Arundel YE 2016 2,860,3834611 10001 Mercedes Franklin Square Drive Drive McCormickTurn Key& CompanyOffice Installations 70,13387,109 Renewal BaltimoreRenewal County East Belcamp NET ABSORPTION VACANCY RATE 5301 Nottingham Drive Velux USA 65,000 New Lease Baltiomre County East YE 2017 2,190,839 YE 2018 5,361,1704710-4732 Trident Medifast 56,182 New Lease Arbutus YE 2019 2,470,394Court Top Sale Transactions 1st Q 2020 1st Q 2020 2,500,6571500 Broening Highway Mid-Atlantic Port 62,000 Sublease Aberdeen CONSTRUCTION ASKING RATES Property Services Buyer SF Price (SF) Submarket 130-1352 Charwood Rd, 7458 New Ridge Rd 650,258 $90,500,000 ($139) Route 1/BWI Area Year-To-Date Market Indicators 7550 Perryman Court & 7659 Solley Road GLL Real Estate Partners 840,000 $90,000,000 ($107) Route 2 Corridor 70017600 Quad Assateague Avenue Drive SouthernGreenfield Glazers Partners 209,934853,503 $88,000,000 ($103) RouteNew 1 Corridor lease Baltimore County East 5300-5301 Nottingham Drive First Industrial Realty Trust 585,338 $71,650,000 ($95) Baltimore County East 7700 Conowingo Avenue The Halle Companies 220,000 $28,207,000 ($128) Route 1 Corridor MARKET INVENTORY 1901 Park 100 Drive Air Freight/Forward Air 109,700 Renewal BWI/Anne Arundel Christopher B. Kubler, CCIM Michael Royce, SIOR Principal Senior Vice President [email protected] | 443-574-1415 [email protected] | 703-268-2741 klnb.com Page 3

Suburban Maryland Industrial Overview

HistoArivce Nraegt eA Abssokripntgio Rne -n INt D- IUNSDTRUISATLRIAL TotalT Motaarlk Met,a Drkireetc, tD Sipraecet Space, NNN Rent Maryland YE 201YE6 2016 2,681,221 $7.81 Pagest 3 YE 201YE7 2017 1,287,743 $7.78 1 Q 2020 IndustrialYE 201YE8 201 Report8 414,769 $7.91 Suburban Maryland Industrial Overview YE 201YE9 2019 (197,434) $7.66 Suburban Maryland Industrial1st Q 1st2020 Q 2020Overview 961,243 $8.30 Year-To-Date Market Indicators Average Asking Rent - INDUSTRIAL Historical Vacancy Rate - INDUSTRIAL Historic Net Absorption - INDUSTRIAL Total Market, Direct Space Total Market, Direct Space, NNN RenMarkett To Inventorytal Mark e– tUp YE 2016 $7.81 ConstructionYE 201 Pipeline6 – Flat 6.3% YE 2016 2,681,221 YE 2017 $7.78Vacancy YE Rate 201 7– Up 6.2% YE 2017 1,287,743 YE 2018 $7.91 Net AbsorptionYE 2018 – Down 6.1% YE 2018 414,769 YE 2019 $7.66 AverageYE Quoted 2019 Rent – Down 6.5% YE 2019 (197,434) 1st Q 2020 $8.30 1st Q 2020 5.2% 1st Q 2020 961,243 Suburban Maryland By the Numbers Historical Vacancy Rate - INDUSTRIAL Year-To-Date Market Indicators Total Market Existing Total YTD Net Average Advertised Rate Suburban Maryland Inventory Vacancy (%) Absorption (NNN, Direct) YE 2016 6.3% Market Inventory – Up Flex 27,822,978 7.8% 152,691 $12.59 By the Numbers Construction Pipeline – Flat YE 2017 6.2% Warehouse 82,792,988 5.2% 961,243 $8.30 YE 2018 6.1% Vacancy Rate – Up YE 2019 6.5% Net Absorption – Down 1st Q 2020 Average Quoted Rent – Down Trends YTD 5.2% Top Lease Transactions 1st Q 2020 Suburban Maryland By the Numbers Property Tenant SF Transaction Type Submarket 7501 Andrews Federal Campus Goodwill 54,676 New Lease Penn Ave Corridor 3411 Pennsy Drive Floornation 46,826 New LeaseExisting Landover/Largo Total YTD Net Average Advertised Rate 1200 Claybrick Road World Central Kitchen 43,200 New Lease Landover/Largo 10549 Tucker Street Superior Distribution 43,000 New LeaseInventorBeltsvilley Vacancy (%) Absorption (NNN, Direct) NET ABSORPTION VACANCY RATE 8791 Snouffer School Road D-BAT Flex 30,228 New Lease 27,Gaithersburg822,978 7.8% 152,691 $12.59 Warehouse 82,792,988 5.2% 961,243 $8.30 Top Sale Transactions 1st Q 2020

CONSTRUCTION ASKING RATES Property Buyer SF Price (SF) Submarket 7106 Geoffrey Way The Co. 717,125 $39,675,000 ($55) Frederick County 10100 Willowdale Road Prologis 98,653 $9,083,918 ($92) Lanham 9700 Philadelphia Court HighMark Charter School 74,175 $7,875,000 ($106) Lanham 8101 Snouffer School Road Royco, Inc. 32,134 $6,312,036 ($196) Gaithersburg

MARKET INVENTORY

About KLNB KLNB is a leading provider of commercial real estate services throughout the mid-Atlantic region. An independently owned and operated commercial brokerage and real estate services firm, KLNB provides a variety of services including tenant and landlord representation, leasing, consulting, investment sales, property management, research, marketing, branding and financing services. More than 85 full-time brokerage professionals work across KLNB’s four offices strategically located throughout the , D.C. / Baltimore region. KLNB is affiliated with NAI Global – the single largest, most powerful global network of owner- operated commercial real estate brokerage firms in the world.

Christopher B. Kubler, CCIM Michael Royce, SIOR Principal Senior Vice President [email protected] | 443-574-1415 [email protected] | 703-268-2741 klnb.com