HSV Graham Report 2007.Pdf (2.78

HUNTSVILLE MARKET SURVEY OFFICE • INDUSTRIAL • RETAIL 2007 TABLE OF CONTENTS

Overall Market ...... 1 Jetplex Industrial ...... 2 Chase Industrial...... 3 Downtown Offi ce...... 4 Jetplex/Madison Offi ce ...... 5 Cummings Research Park Offi ce . . . 6 Cummings Research Park Map . . . . 8 Retail Map...... 10 Retail Market ...... 12 For Sale or Lease ...... 14 Recent Graham Activities...... 16 Offi ce & Industrial Group ...... 18 Property Management Group . . . . 19 About Graham & Company ...... 20 [MARKET TOTALS] OVERALL OFFICE 14,449,887 SF INDUSTRIAL 17,407,460 SF MARKET RETAIL 11,655,751 SF

HUNTSVILLE REAL ESTATE MARKET OVERVIEW

OFFICE: The Huntsville offi ce market remains tight with vacancies running below 7%. New offi ce construction in Cummings Research Park (CRP) has exploded with over 1.5 million sf of new product coming online in 2006 and 2007. Much of this growth is in anticipation of the recent Base Realignment and Closure (BRAC) announcement. The BRAC recommendations included the move of seven different entities to Redstone Arsenal that will add 4,714 new jobs to the market. The job growth in the public sector is fueling the new construction in CRP. CRP dictates the Huntsville offi ce market with over 9.5 million sf. The occupancy rate for CRP is 97% while the entire Huntsville offi ce market stands at 93%. The Central Business District (CBD) market and the tertiary offi ce markets remain stable.

OFFICE OCCUPIED VACANT 2006 2005 2004

Multi-Tenant 6,566,980 658,628 10.03% 11.32% 16.44%

Single Tenant 6,951,016 273,263 3.93% 3.24% 3.31%

TOTAL OFFICE MARKET 13,517,996 931,891 6.89% 7.23% 10.34%

INDUSTRIAL: Huntsville’s industrial market, dominated by the Jetplex and Chase Industrial Parks, is showing a vacancy rate of less than 5%. Most large blocks of space in the market have been leased and several new industrial developments were announced in 2006. Over 250,000 sf of industrial space is currently under construction, with several hundred thousand additional sf being planned. The majority of this growth is in the Jetplex area, and this new supply should help attract new businesses to the area.

INDUSTRIAL OCCUPIED VACANT 2006 2005 2004

Multi-Tenant 4,386,605 467,730 10.66% 8.26% 20.56%

Single Tenant 12,219,775 333,350 2.73% 5.69% 3.94%

TOTAL INDUSTRIAL MARKET 16,606,380 801,080 4.82% 6.37% 8.64%

RETAIL: Huntsville’s retail market is experiencing a period of growth. Bridge Street Town Centre, a new development in Cummings Research Park, will offer 500,000 sf of retail shopping, and many new developments have emerged in the South Huntsville/Jones Valley area as well. North and Middle Huntsville are attracting more quality retailers, and residential growth is spurring much activity in Northwest Huntsville/Madison.

RETAIL OCCUPIED VACANT 2006

TOTAL RETAIL MARKET 10,732,388 923,363 8.60%

GRAHAM & COMPANY This report includes current spaces available for sublease. HUNTSVILLE MARKET SURVEY 2007 1 JETPLEX [9.17 MILLION SF TOTAL] INDUSTRIAL SINGLE TENANT 5,911,945 SF MARKET MULTI-TENANT 3,267,388 SF

THE JETPLEX SUBMARKET IS COMPRISED OF SEVERAL SMALLER MARKETS THAT SUR-

ROUND THE HUNTSVILLE INTERNATIONAL AIRPORT AND THE INTERMODAL CENTER. Jetplex Industrial Park contains 1,700 acres and offers Foreign Trade Zone #83, U.S. Customs Port of Entry and interstate access via I-565. Lowe Industrial Park is a 900-acre park originally designed to encompass the growth of Intergraph Corporation. Jetplex South Industrial Park contains 956 acres and should be positively affected by the 12,000 foot extension to the west runway.

Recent developments in the Jetplex Market: 1) International Truck and Engine Corporation will assemble its new line of truck diesel engines at a 300,000 sf facility in Jetplex Industrial Park. The new plant will house about 175 employees. Full production is expected to begin in spring of 2008.

2) BASF completed a $5 billion acquisition of Engelhard. The Huntsville plant, which employs approximately 500 people, will be integrated into BASF.

3) Graham & Company began construction on a new 208,000 sf distribution center. Construction on an additional 208,000 sf facility will begin in 2008.

Major area tenants include: The Boeing Company, International Truck and Engine Corporation, Cinram, Kohler and Intergraph.

Huntsville CBD 20

Lowe Industrial Park BLVD. DUNLOP BLVD. MADISON HWY. HWY.

A KELLNER RD. N IA R T

- JA ME S RECORD RD. WALL Huntsville International International Intermodal

Center RD. ZIERDT Airport Jetplex – INTERNATIONAL TRUCK AND ENGINE – Industrial International announced plans for a new Park 300,000 sf facility that will be used to COUNTY LINE ROAD

BLVD assemble its new line of truck engines. G . Redstone IN BOE Arsenal

Jetplex South GRAHAM & COMPANY

. WALL - TRIANAHWY. 2 RD HUNTSVILLE MARKET SURVEY 2007 SWANCOTT [ 5.1 MILLION SF TOTAL] CHASE SINGLE TENANT 4,753,930 SF INDUSTRIAL MULTI-TENANT 330,000 SF MARKET

CHASE INDUSTRIAL PARK IS A 1,500-ACRE PARK LOCATED IN NORTHEAST HUNTSVILLE THAT

WAS DEVELOPED BY THE MADISON COUNTY COMMISSION. The park is industrial-oriented and mostly comprised of single tenant employers. Products manufactured in the park include medical instruments, DVD’s, copper and plastic products and pharmaceuticals. Qualitest Pharmaceuticals, a manufacturer of generic drugs, has over 750,000 sf of ofﬁ ce and manufacturing space in the park. Cinram, one of Huntsville’s largest employers, uses a 1.1 million sf facility to manufacture compact discs.

Transactions of note include: 1) Kömmerling USA expanded its facility by 100,000 sf. More than sixty new jobs will be added with the expansion.

2) Cinram announced plans to expand its current facility by 263,000 sf. Cooper Construction was awarded the construction project.

Major area tenants include: – KÖMMERLING – Cinram, Qualitest Pharmaceuticals, Hart & Cooley, Kömmerling expanded its Chase facility by 100,000 sf in 2006. Kömmerling, J & J South Central and PPG.

HUNTSVILLE INDUSTRIAL MARKET SF . RD R 6 TE ES CH 5.9 IN 5 MILLION W 4.8 4 MILLION

3 3.3 MILLION 2 MILLIONS MOORES MILL RD. 1 200 300 300 300

THOUSAND 100 THOUSAND THOUSAND HOMER NANCE RD. THOUSAND THOUSAND 0 Jetplex Single Jetplex Multi Chase Single Chase Multi CHA JORDAN RD. SE RD.

Total SF Vacant

Chase Industrial Park

GRAHAM & COMPANY Huntsville HUNTSVILLE MARKET SURVEY 2007 3 CBD DOWNTOWN [ 2.1 MILLION SF TOTAL] OFFICE SINGLE TENANT 429,000 SF MARKET MULTI-TENANT 1,673,676 SF

THE HUNTSVILLE DOWNTOWN OFFICE MARKET IS DOMINATED BY LEGAL, BANKING, ACCOUNTING AND BROKERAGE PROFESSIONALS. City, county and government employees also make the downtown Central Business District (CBD) their home. The 91,000 sf former Sanmina - SCI administrative building is being upgraded to serve as a multi-tenant offi ce tower. The former Huntsville Times building and several other smaller downtown offi ce buildings are undergoing similar modernization projects. The downtown offi ce market remains stable. Most Class A buildings are showing vacancies of 5% or less. New construction in the downtown

market includes the Summit at Big Spring Park. – AMSOUTH BUILDING – The AmSouth and Regions Transactions of note are as follows: merger was completed in November 2006. 1) AmSouth and Regions Bank completed their merger in November of 2006. The new bank will control 39% of the local banking market. Huntsville’s downtown ofﬁ ce market should not be negatively impacted by the consolidation.

2) The redevelopment of the 55 year-old Council Court housing project in downtown Huntsville was announced. An RFP was released to qualify bidders for the project. The project includes demolition of 196 units, building a 75 to 124-unit complex on the site, and selling the remaining available land. Money from the land sale will go back into Huntsville’s public housing project.

Major area tenants include: Regions Bank, Madison County Government, Colonial Bank, VERS UNI ITY

DR. Wachovia Bank, City of Huntsville and Bradley Arant.

C H U R C H W

A M S H E M S IN T O . G R T I O A N L

T. . S DOWNTOWN

P E O K R W N OFFICE MARKET

Y O SF

. M 2.0

. HOLMES AVE 1.5 1.7 MILLION AVE. Total SF INTON CL 1.0 Vacant IAMS VE. ILL A W MILLIONS 429 0.5 THOUSAND 245 230 THOUSAND THOUSAND 231 HUNTSVILLE 0 Single Multi

GOVERNORS DR GRAHAM & COMPANY HUNTSVILLE MARKET SURVEY 2007 4 JETPLEX/ [1.57 MILLION SF TOTAL] MADISON SINGLE TENANT 700,000 SF OFFICE MULTI-TENANT 927,660 SF MARKET

THIS MARKET IS DRIVEN BY TWO MAIN SUBMARKETS: JETPLEX AND MADISON. Jetplex area tenants tend to be industrial or logistics oriented. Boeing and Intergraph dominate the Jetplex ofﬁ ce market. The City of Madison has seen multiple banking and healthcare related buildings developed over the past couple of years. That growth, particularly in the health care industry, should remain strong. County Line Road, Hughes Road and Highway 72 look to be the areas that will experience new projects. Y. 72 HW

TUR DECA

New Developments: HUNTSVILLE 1) Intergraph Corporation announced completion of the acquisition of Intergraph by an investor group led by Hellman & Friedman and Texas Pacifi c Group. The transaction was valued at approximately $1.3 billion. BALCH RD. 2) The battle over construction rights for a Madison hospital HUGHES RD. WALL - TRIANA HWY. - TRIANA HWY. WALL continues. A fi nal decision could be reached in the spring of 2007 which will affect the medical offi ce market surrounding the new hospital. MADISON PIKE

MILL RD. Major area tenants include: Huntsville Intergraph, The Boeing Company and Northrop Grumman. Madison CBD Research Park MADISON SULLIVAN ST. ST. SULLIVAN 20

. LVD N B ISO MAD DUNLOP BLVD.

KELLNER RD.

– THE BOEING COMPANY – JAM ES Boeing is one of the area’s largest employers and R ECORD RD. has several facilities in the Jetplex market.

Huntsville International JETPLEX/MADISON Airport RD. ZIERDT LL - TRIANA HWY. LL - TRIANA HWY.

OFFICE MARKET A

SF W 1.0 JETPLEX 928 VD 0.8 COUNTY LINE ROADL . COUNTY LINE ROAD B 700 THOUSAND G THOUSAND IN BOE 0.6 Total SF 0.4 Vacant MILLIONS 150 0.2 ALL THOUSAND OCCUPIED 0 0 Single Multi D. SWANCOTT R

GRAHAM & COMPANY HWY. - TRIANA WALL HUNTSVILLE MARKET SURVEY 2007 5 CUMMINGS [ 9.8 MILLION SF TOTAL] RESEARCH PARK SINGLE TENANT 5,822,016 SF OFFICE MULTI-TENANT 3,965,644 SF MARKET

CUMMINGS RESEARCH PARK IS EXPERIENCING

A TREMENDOUS AMOUNT OF GROWTH AND

CONSTRUCTION WITH OVER 1.5 MILLION SF of new ofﬁ ce buildings under construction or completed in 2006. The engine for this growth is in anticipation of the 4,700 new BRAC jobs that are due to enter the market between 2007 and 2010. Redstone Arsenal has many large ofﬁ ce projects underway that will

accommodate a portion of this new demand; however, – HUDSON ALPHA INSTITUTE OF most of the need will be housed in CRP. BIOTECHNOLOGY – Construction began on this 260,000 sf facility. Cummings Research Park was founded in 1962 by the City of Huntsville and is now the 2nd largest research park in the United States. The park encompasses 3,843 acres and includes over 9.5 million sf of ofﬁ ce space. The second major phase was announced in 1982 with the purchase of over 800 acres known as CRP West. The park mix ranges from Fortune 500 companies to local entrepreneurial start-ups to award- winning small businesses.

Transactions of note include:

1) Verizon Wireless announced plans to build a 152,000 sf headquarters and customer service center in Thornton Research Park. The $44 million investment will bring as many as 1,300 new jobs to the area.

2) The planned Enhanced Use Leasing (EUL) project was awarded to Jim Wilson & Associates. The project calls for the developer to lease 422 acres from

J H O Redstone Arsenal for an ofﬁ ce and research park of up to two UN R TS D VI LLE . A R N D EC D million sf. AT UR L H A WY N . E

MAN K

R 3) Colsa Corporation announced plans to build a new 79,530 sf A

P 72 S UNIVERSITY DR. facility in CRP. The expansion will accommodate 350 employees, The BRAD University including 124 new jobs. FORD BLVD. of Alabama in Huntsville Cummings Research Park 4) Lockheed Martin broke ground on a new 160,000 sf ofﬁ ce West East building that is expected to be completed in October of 2007. MADISON PIKE BOB WAL LACE New Bridge Street Huntsville Turner Universal is the general contractor on the $30 million Development CBD project.

GOSS RD. 20

Redstone Arsenal

PATTON RD. PATTON GRAHAM & COMPANY HUNTSVILLE MARKET SURVEY 2007 6 RESEARCH PARK BLVD. RESEARCH PARK CUMMINGS RESEARCH PARK OFFICE MARKET

5) Sparta Incorporated completed a 97,000 sf facility in Thornton Research Park. The facility will consolidate the company’s local operations.

6) The Hudson-Alpha Institute for Biotechnology broke ground on a new 260,000 sf facility.

7) SAIC began construction on a new 4-story 100,000 sf facility on the company’s 10-acre CRP campus. Samples Properties is the developer.

– RAYTHEON – 8) Madison Research, Morgan Research and CAS were The Raytheon building was completed and is purchased by larger ﬁ rms. one of the area’s fi rst “green” facilities.

9) Bridge Street, Triad Properties and Intersouth Properties began construction on separate multi- tenant ofﬁ ce buildings.

Major area tenants include: Boeing, SAIC, Northrop Grumman, BAE, Avocent, Westar and numerous other high-tech companies.

– SAIC – SAIC’s new 100,000 sf facility will be located on the company’s CRP campus.

CUMMINGS RESEARCH PARK SF COMBINED MARKET 6 5.8 5 MILLION

4 4.0 Total SF 3 MILLION Vacant 2 MILLIONS 1 300 30 THOUSAND – COLSA – THOUSAND 0 Colsa began construction on its new 79,530 sf Single Multi facility in Cummings Research Park.

GRAHAM & COMPANY HUNTSVILLE MARKET SURVEY 2007 7 CRP WEST CRP EAST

Miltec National Scale 7 AC Scientific-Atlanta Dynetics Dynetics Technology 5 AC 6.75AC Mission Research 11.96 AC Dynetics Way se Measurement 11.92AC 11.35AC 6.89 AC 8.17 AC 26.79 AC 9 AC Specialists MTA 6.5 AC 10.23 AC Alabama 72 Enterpri 10 AC Supercomputer Madison 18 AC Square Mall Peg asu Dynetics Bldg. 2 Camber e 10.64 AC s Bldg. 1 University Driv 7.3 AC 11 AC 8.05 AC Bldg. 3 Corporate Office Park 8.75 AC 7.82 AC 10.09 AC 8.9 AC Discovery Place TARCOG 6.72 AC 24 AC Delta 6 AC Research SYColeman Corporate Drive Infinity Morton Hall 12.38 AC Camber Technology North Campus 13.26 AC Sparta Residence Hall 7.97 AC System 5 AC Corporation 5.35 AC SAIC SAIC Executive Plaza Office Park 8.56AC 11.37 AC Avocent 7.61 AC 9.67 AC Camber Studies & 10.63 AC SYColeman Faulkner 9.02 AC 7.4 AC Corporation Simulation Technology AEgis CAS University Union Grove Gallery & Spragins Hall

MagnaCom Technologies UAH Lockheed Center Bevill Meeting Hall

C d BizTech

Huntsville r Baron Martin Martin CSC Holmes

h a Foundation Conference

Utilities v

10.75 AC 6.57 AC a 15.47 AC 12 AC Brothers e Services 12.71 AC l 7.82 AC 5 AC l Center & University

l 6 AC

e 3.2 u Madison o A

n BFA Systems Colonial Center A-P-T venue Hotel Center/

5.8 AC g B Research Kottmann

6.74 AC AC KBM Radiance Roberts

e State of Ala. r CNI at Lakeside Research Administration

r e

Dept. of r Research Drive Technologies, Inc. Hall o

l 10.76 AC OMI

Revenue p 19.69 AC DESE Research

10.34 AC SDI x 10 AC Central Campus 10.6 AC E 8.47 AC BellSouth Delta Research Residence Hall 9.2 AC Colonial Center 9.2 AC 7.48 AC Titertek Instruments Nursing Lake 1 at Research Park 9.6 AC 10 AC Pesa Switching Systems Salmon Quantum RVSI Biotechnology Drive Research Research Place Wilson Hall Library Avion UAI 9.6 AC 18.0 AC 8.14 AC Primrose School West Administrative United Space Corporation 7.8 AC Hudson-Alpha Institute Alliance Fire Drive 306 Wynn Lockheed Martin Science for Biotechnology 6.17 AC Station #12 n Holmes Avenue Davidson Lockheed Martin Teledyne Wyn Intermodal Farrow Road 7.19 AC Astronautics & Solutions Amtec Lockheed Martin Tec hnologies Center/ University Premier MEADS Program Dynetics 7.7 AC 5025 Catholic Parking Fitness Columbia 7.59 AC Preschool Bradford 5 AC 51.95 AC Coleman Discovery Drive 30 AC High School Shelby Garage Center High School Research Applied AT&T Sikorsky Bradford Drive Robert “Bud” Cramer Sciences Aircraft Research Hall Fraternity/ 5 AC Sorority 8.07AC U.S. Social Toroid (NSSTC & New Century 5.64 AC ADTRAN Bradford Commons Operon Boeing Security 4975 NOAA Weather 18.35 AC Administration Place Technology Bradford Redstone SDI Forecasting Ofﬁce) 43.92 AC CSOC Avnet Federal Southeast 5 AC SRS Aviagen Stanley High School Credit Union Associates Campus 9.22 AC Technologies Lake 3 Lake 2 Intermedia Benchmark Housing Communications Madison 19.23 AC Colsa Inc. & Electronics Hall ADTRAN ARC Colsa Lakeside 5 AC Alabama Sparkman Drive Moquin Drive 6.16 AC Research Park Boulevard Credit Union Northrop Teledyne HUNTSVILLE, ALABAMA Nektar Grumman Odyssey Gilmer Drive Optics 50.0 AC Therapeutics Drive Northrop Brown Engineering 8.20 AC 35.88 AC 5.21 AC Grumman Engineering 5 AC 7 AC Future Northrop 7.35 AC Grumman Park Place Development 6.2 AC DRS Technologies 12.3 AC 18 AC SAIC Technical Ball Aerospace & Materials Science Explorer Boulevard Huntsville Micronics 76 AC 8.40 AC Biotechnology Center EXCO BellSouth Controls Technologies EDAW Westar Analytical Westar CAS 9.3 AC Services, Inc. Technology Place Teledyne Von Braun Solutions Research Hall 12.4 AC 11.3 AC 9.78 AC GSA

(Former SMDC) Physical Plant

v Johnson

6.56 AC i r Business

18.12 AC 10.41 AC r Way 11.1 AC Cummings Research Park gy Drive Olin B. King Research D Northrop

11.3 AC Tec hnolo CG² Services Center

h Grumman Technology Hall Center Receiving & 8.01AC t

a BAE Systems 4 Spacehab Shipping e 45 Years of Success

Future Voyage WLRH Radio Future 5.76 AC H Shelbie General

b 4 Siemens VDO Dynamics King Hall Preschool Station

Development Premier Pro. o 10.91 AC 3,843 acres University of Learning B 7.59 AC Automotive

Way

Lake 4

Systems Alabama in Center

4 10 AC 6.43 AC 7.19 AC 10 million square feet Huntsville 7.7 AC Digium, Inc. 7 AC Eagle Drive 4 Quest Circle Northrop 285 companies total Calhoun Advanced Systems SUMMA le Jan Davis 9.67 AC Sci-Quest Technology AEgis Grumman Technology svil 8.8 AC 4 Community (United Technologies) 20 AC Technologies 8.09 AC (Option) BAE Systems 24,500 employees College unt (Option) 10.13 AC 4 n H 8.4 AC 7.23 AC 8.7 AC BAE Systems 9,800 enrolled college students Raytheon 445 publicly held companies Downtow 8.1 AC Company SAIC InfoPro Intuitive Northrop Corp. Research Bridge Street (Option) 14.39 AC Grumman Town Centre 9.86 AC 9.51AC 8.64 AC 9.5 AC 6.8 AC 11.02 AC Old Madison Pike Technology Pointe

UAH CAS US Space & Foundation SPARTA DirecTV Rocket Center (Zoned 14.0 AC Progress Center t

Park West Research Park Ofﬁce Center s CRP West) Center e W

r 23 AC o Established in 1962, Cummings Research Park (CRP) is one of the n r Quality Circle e v largest and most-respected research parks in the world. Since its CRP WEST o BPI Lake 5 G inception CRP has grown to become the second-largest science and technology park in the U.S. and fourth-largest in the world. LAND PRICES PER ACRE

Diamond Drive Aerospace Products Catholic CINRAM CRP, as shown here, encompasses 3,843 acres and includes more than High School 10 million square feet of administration, laboratory, research and Interior Lots: $60,000 Huntsville Highland Ofﬁce Park development, classroom and manufacturing space. (Lots that do not front Park boulevards, and must be accessed Hospital 10.0 AC via non-boulevard roads) New Ofﬁce Bldg. More than 450 acres of land are available for development in CRP West, and with the primary goal of stimulating economic development Boulevard Non-Access Lots: $77,500

CUMMINGS RESEARCH PARK growth and investment, the price of land per acre in CRP is 10.0 AC 10.0 AC 20 565 (Lots that have property frontage on boulevards, but are Thornton significantly lower than adjacent property, and a leading incentive for new and expanding companies. accessed from non-boulevard roads) Research Park Verizon Wireless 25.0 AC University of Land parcels in CRP West range from five acres (minimum) to 18 Boulevard Access Lots: $82,500 acres, but may also be reconfigured to meet company requirements. Alabama in irport (Lots that have property frontage on and are directly accessible For each parcel, the City of Huntsville will complete basic site Huntsville (UAH) via boulevards) Foundation U.S. Army preparation including road access, curbing, drainage, national A Redstone Arsenal telecommunications, and utilities to the site. le Inter Lakeside Lots: $99,500 For more information contact Rick Davis, 256.535.2018, or via email at: [email protected] 0 1/4 1/2 3/4 Huntsvil NASA Marshall Space Scale in Miles Flight Center Or visit us at www.HuntsvilleAlabamaUSA.com

Chamber of Commerce of Huntsville/Madison County 35757

JOR 35810 DAN LAN MEDIAN HOUSEHOLD INCOME Madison County 35811 Limestone County

E (2000 Census)

35806 $60,000 & Over JEFF RD. WINCHESTER RD. SHIELDS RD. $50,000 - 59,999 Y 35749 KW $40,000 - 49,999 AL P

ORI NANCE RD. $30,000 - 39,999 PULASKI PIKE 255 53 MEM Less than $29,999

MASTIN LAKE RD. 72 For more information contact Ken Smith, KE 256.535.2026, or via email at: [email protected] PI ARK BLVD. RYL PROVIDENCE MAIN ST. Or visit us at www.HuntsvilleAlabamaUSA.com March 2007 SPARKMAN DR.

(Planned) RESEARCH P UNIVERSITY DR

. 72 35801 35816 Parkway Place

SLAUGHTER RD. The Fountain ANDREW JACKSON WAY

Westside Center . BALCH RD. D .

V D

L (Planned) R

HUNTSVILLE, ALABAMA L HUGHES RD.

O L I

N H A

S G

U WALL TRIANA HWY. WALL

E D T N 35758 O M

35741 GOVERNORS DR. Madison Square Mall

Valley Bend at Jones Farm BOB WALLACE OLD MADISON PIKE 35805 MILL RD. 20 (Planned) DRAKE AVE.

COUNTY LINE RD. EUL (Enhanced Use Leasing) AIRPORT RD.

RIDEOUT RD. C A R L T . J O 431 RG DR. RG N Coming Soon! U E S 231 DR LEDGES

ESB . 35756 DR.

WHIT FOU

R MILE POST RD. KWY

35808 P B

I L

E SUTTON RD. OLD 431 HWY

LILY FLAGG RD. Y

MEMORIAL MEMORIAL C

. O

D V R

E N I T R R Huntsville A D M . 35802 International Airport WEATHERLY RD. MAJOR RETAIL STORES RETAIL MAJOR Redstone Arsenal 35824 Bath & Body Works • Clarks • DSW • Fossil • Kay Jewelers • Limited Too • Lucky Brand • Reed's Jewelers • Strasburg Children • Sunglass Hut • Victoria's Secret • Westin Heavenly Spa UNTAIN O G M A P R D . 35763

O'Brien's Irish Pub • Red Robin PATTON RD. Ten Pin Alley

HOBBS RD. Chamber of Commerce of Huntsville/Madison County RETAIL MARKET

THE HUNTSVILLE MSA HAS EXCEEDED 10,000,000

SF OF RETAIL SPACE INCLUDING ENCLOSED MALLS – BRIDGE STREET – This mixed-use development is projected to IN FIVE SUBMARKET AREAS. Although the closings open August 2007 at a 90% occupancy rate. of several grocery chains softened the market, the The center will add 550,000 sf of Class A space with its lifestyle center setting. overall retail activity remained healthy in 2006. The retail market continues to grow with new upscale specialty and power centers, especially in the Jones Valley/Hampton Cove market. Redevelopments of older centers in the prime corridors are also emerging. In 2006 Gander Mountain, Fresh Market and Old Time Pottery absorbed approximately 300,000 sf of box space formerly occupied by Sam’s Club, Winn-Dixie and Kmart. Several new Class A neighborhood developments are – GANDER MOUNTAIN – emerging across the Huntsville/Madison landscape. Of Gander Mountain leased the 134,000 sf former special note is Bridge Street Towne Centre, Huntsville’s Sam’s Club in North Huntsville. largest mixed use development. Huntsville boasts one of the highest concentrations of advanced degrees in the nation and ranks 4th as the TOTAL RETAIL SF BY MARKET highest average salary level in the southeast. These South Huntsville considerations, coupled with Huntsville’s growing University Drive West population, have put Huntsville on the radar screen of 19% 31% many national retailers, including Fresh Market and Jones Valley/ 17% Gander Mountain. Hampton Cove 16% 17%

North Hwy. 72 W/ Huntsville Madison

SF RETAIL OCCUPANCY BY MARKET 4

3.4 3 MILLION

Total SF 2 2.1 Vacant 1.7 MILLION 1.8 1.8 MILLION MILLION

MILLIONS MILLION 1 318 103 THOUSAND 224 166 113 THOUSAND THOUSAND THOUSAND THOUSAND 0 North University South Jones Valley/ Highway 72W/ Huntsville Drive West Huntsville Hampton Cove Madison

GRAHAM & COMPANY HUNTSVILLE MARKET SURVEY 2007 12 RETAIL MARKET

Huntsville’s ability to attract upscale retailers has – FRESH MARKET – Fresh Market leased the 26,000 sf former led to record rental rates for Class A retail properties Winn-Dixie anchor space at the Village on in the market. Newly developed or redeveloped Whitesburg. Redevelopment of the entire center is currently underway. specialty centers are being offered for $20 to $30 psf. Record setting rental rates and increased demand for residential construction continue to fuel investors to build additional retail properties. Within Huntsville’s city limits, 5,000 permits were approved in 2006 for new residential construction. 7,000 additional proposals are awaiting approval.

New Developments: 1. A $90 million development is planned for an 80 acre – OLD TIME POTTERY – Old Time Pottery leased the 87,000 sf former site in West Huntsville. The Wal-Mart anchored center Kmart anchor space at Madison Village will feature a multi-family component and theater Shopping Center in Madison. complex.

2. Plans for a 123,000 sf Publix anchored center TOTAL RETAIL SF BY TYPE have been announced for the intersection of County

Power Center Line Road and Browns Ferry Road in Madison. This Neighborhood Anchored development is spurred by Madison’s residential growth

20% rate of 400 homes per year. 34% 3. Construction has begun on Bridge Street Town 15% Enclosed Mall Centre, the much anticipated mixed-use development 10% 21% in Cummings Research Park. The project is Huntsville’s ﬁ rst mixed-use development combining retail, ofﬁ ce, Neighborhood Large Box hotel and residential facets.

SF RETAIL OCCUPANCY BY TYPE 4

3.6 3 MILLION

Total SF 2 2.3 2.1 MILLION Vacant MILLION 1.6 MILLIONS 1 MILLION 1.1 454 MILLION 139 THOUSAND 183 95 53 THOUSAND THOUSAND THOUSAND THOUSAND 0 Neighborhood Neighborhood Power Center Enclosed Mall Large Box Anchored

GRAHAM & COMPANY 13 HUNTSVILLE MARKET SURVEY 2007 FOR SALE OR LEASE

PROVIDENCE 100 PROVIDENCE MAIN, HUNTSVILLE, AL AVAILABLE: 15,000 SF • Located in the Village of Providence • Easy ingress/egress with trafﬁ c light at Hwy 72 intersection • Divisible by 3,000 sf

Contact: Bentley Wilder • (256) 382-9010 – PROVIDENCE – [email protected]

EXECUTIVE PLAZA 555 SPARKMAN DRIVE, HUNTSVILLE, AL AVAILABLE: 18,000 SF • Convenient location in Cummings Research Park East • Flexible ofﬁ ce plans

Contact: Bentley Wilder • (256) 382-9010 [email protected] – EXECUTIVE PLAZA –

THE ATRIUM 150 WEST PARK LOOP, HUNTSVILLE, AL AVAILABLE: 15,000 SF • Convenient to Cummings Research Park • Security System

Contact: Bart Smith, CCIM, SIOR • (256) 382-9010 [email protected] – THE ATRIUM –

MADISON BUSINESS PARK SOUTH MADISON BUSINESS PARK SOUTH, HUNTSVILLE, AL AVAILABLE: 193,000 SF • Ofﬁ ce and high bay space available • Excellent access to I-565/Hwy 20 • Consists of 9 buildings totaling 571,503 sf

Contact: Jeremy Pope • (256) 382-9010 [email protected] – MADISON BUSINESS PARK SOUTH –

DUNLOP FACILITY DUNLOP BOULEVARD, HUNTSVILLE, AL AVAILABLE: 40,000 SF • Divisible to 30,000 sf • Excellent interstate and rail access • Total building sf is 1.2 million

Contact: Jeremy Pope • (256) 382-9010 – DUNLOP FACILITY – [email protected]

GRAHAM & COMPANY HUNTSVILLE MARKET SURVEY 2007 14 FOR SALE OR LEASE

AIRPORT DISTRIBUTION CENTER 255 SHORT PIKE ROAD, HUNTSVILLE, AL AVAILABLE: 208,000 SF • Divisible by 78,000 sf and 52,000 sf • Excellent interstate access • Controlled industrial park

Contact: Jeff Wilke, CCIM, SIOR • (256) 382-9010 – AIRPORT DISTRIBUTION CENTER – [email protected]

FUTABA BUILDING 2865 WALL TRIANA HIGHWAY, HUNTSVILLE, AL AVAILABLE: 75,266 SF • 46,756 sf of warehouse/mezzanine space and 28,510 sf of ofﬁ ce space • Concrete tilt-up construction • Situated on 10.38 acres; built in 2000

Contact: Jeff Wilke, CCIM, SIOR • (256) 382-9010 [email protected] – FUTABA BUILDING –

MADISON RESEARCH PARK MADISON, AL AVAILABLE: 40,000 SF • Suites available from 2,500 sf to 40,000 sf • New modern design within an established business park • Available Fall 2007

Contact: Jeff Wilke, CCIM, SIOR • (256) 382-9010 – MADISON RESEARCH PARK – [email protected]

HIGHWAY 72 WEST RETAIL CENTER MADISON, AL AVAILABLE: 17,000 SF • Vanilla shell build-out included • Accessible from Hwy 72 and Nance Road

Contact: Marshanne Castro, CPM • (256) 382-9010 [email protected] – HWY 72 WEST RETAIL CENTER –

CROSSROADS CENTER 2900 TRIANA BOULEVARD, HUNTSVILLE, AL AVAILABLE: 42,000 SF • Convenient to downtown Huntsville and I-565 • Located at the heavily traveled intersection of Triana Blvd & Bob Wallace Ave

Contact: Bart Smith, CCIM, SIOR • (256) 382-9010 – CROSSROADS CENTER – [email protected]

GRAHAM & COMPANY 15 HUNTSVILLE MARKET SURVEY 2007 RECENT GRAHAM ACTIVITIES

LEASED LEASED

– EXECUTIVE PLAZA – – MADISON VILLAGE SHOPPING CENTER –

15,737 SF – Executive Plaza 87,000 SF – 9076 Madison Boulevard Represented landlord is leasing over 15,000 sf Represented landlord in leasing this 87,000 sf of this ofﬁ ce complex. anchor space to Old Time Pottery. Agent: Bentley Wilder Agent: Marshanne Castro, CPM

SOLD SOLD

– 1600 HULACO ROAD, ARAB, AL – – MADISON RESEARCH PARK –

137,000 SF – Arab, AL 133,748 SF – Madison Research Park Represented Sanmina-SCI in the disposition Represented owner in the disposition of this of this industrial facility. multi-tenant ofﬁ ce property. Agents: Bart Smith, CCIM, SIOR • Jeremy Pope Agent: Jeff Wilke, CCIM, SIOR

LEASED SOLD

– SPACEGATE INDUSTRIAL PARK – – THORNTON RESEARCH PARK –

70,000 SF – Dan Tibbs Road 300,000 SF – 300 Diamond Drive Represented tenant in leasing over 70,000 sf in Represented Sanmina-SCI in the disposition Spacegate Industrial Park. of this industrial facility. Agent: Jeremy Pope Agent: Bart Smith, CCIM, SIOR

GRAHAM & COMPANY HUNTSVILLE MARKET SURVEY 2007 16 RECENT GRAHAM ACTIVITIES

SOLD SOLD

– 124 JETPLEX CIRCLE – – 450 11TH STREET, ARAB, AL –

60,000 SF – 124 Jetplex Circle 103,428 SF – 450 11th Street, Arab, AL Represented seller in the disposition of this Represented seller in the disposition of this ofﬁ ce building. industrial facility. Agents: Bart Smith, CCIM, SIOR • Jeff Wilke, CCIM, SIOR Agent: Jeremy Pope

SOLD LEASED

– JETPLEX INDUSTRIAL PARK – – MADISON BUSINESS PARK SOUTH –

359,000 SF – 1000 James Record Road 100,000 SF – Madison Business Park South Represented seller in disposition of this Over 100,000 sf leased at this campus. industrial facility. Agent: Jeff Wilke, CCIM, SIOR Agent: Jeremy Pope

SOLD LEASED

– GOOSEPOND INDUSTRIAL PARK – – THE ATRIUM –

139,961 SF – Scottsboro, AL 15,500 SF – 150 West Park Loop Represented seller in disposition of this multi-building Represented landlord in leasing the 3rd ﬂ oor of this industrial facility situated on 250 acres. ofﬁ ce building. Agent: Jeremy Pope Agent: Bart Smith, CCIM, SIOR

GRAHAM & COMPANY HUNTSVILLE MARKET SURVEY 2007 17 OFFICE & INDUSTRIAL GROUP

BART SMITH, CCIM, SIOR JEREMY POPE MANAGING BROKER VICE PRESIDENT [email protected] [email protected]

JOINED GRAHAM & COMPANY: 2002 JOINED GRAHAM & COMPANY: 2000

AFFILIATIONS/HONORS: AFFILIATIONS/HONORS: • Certifi ed Commercial Investment • Candidate for the Certifi ed Member (CCIM) Designation Commercial Investment Member • Society of Offi ce & Industrial (CCIM) Designation Realtors (SIOR) Designation • Member of National Association of Industrial & Offi ce Properties (NAIOP) CLIENTS INCLUDE: • University of Alabama in Huntsville Alumni Association • Sanmina-SCI Board Member • Northrop Grumman • Cisco CLIENTS INCLUDE: • DirecTV • Tyco • Ivan Allen • Owens Corning • Wachovia • Intergraph • Texas Instruments • International Truck & Engine • AmeriMortgage • Wolseley • Arrow Electronics • Ferguson • DirectBuy • Alabama Department of Transportation JEFF WILKE, CCIM, SIOR • GE VICE PRESIDENT • NexAir [email protected]

JOINED GRAHAM & COMPANY: 2000 BENTLEY WILDER [email protected] AFFILIATIONS/HONORS: • Certifi ed Commercial Investment JOINED GRAHAM & COMPANY: 2005 Member (CCIM) Designation • Society of Offi ce & Industrial AFFILIATIONS/HONORS: Realtors (SIOR) Designation • Candidate for the Certifi ed Commercial Investment Member • Member of Economic Development Association of Alabama (CCIM) Designation (EDAA) • Member of the University of CLIENTS INCLUDE: Alabama Alumni, Madison • Cinram County Chapter • US Army • Member of National Association of Industrial & Offi ce • Kohler Properties (NAIOP) • UPS • The Boeing Company CLIENTS INCLUDE: • AT&T • VACCO Industries • Sonoco Products Company • MEADS, LLC • Makino • Rite-Aid • Red Hat • Gleason Research • Sherwin-Williams • American Financial Realty Trust • RJ Young • Aggreko

GRAHAM & COMPANY HUNTSVILLE MARKET SURVEY 2007 18 PROPERTY MANAGERS

MARSHANNE JASON DUGGER, RPA, FMA CASTRO, CPM [email protected] [email protected] JOINED GRAHAM & COMPANY: 2000 JOINED GRAHAM & COMPANY: 2003 AFFILIATIONS/HONORS: AFFILIATIONS/HONORS: • Member of Building Owners • Member of Institute of Real and Managers Association Estate Management (IREM) International (BOMA) • Member of Huntsville Board of • Real Property Administrator Realtors (RPA) Designation • Member of International Council of Shopping • Facilities Management Administrator (FMA) Centers (ICSC) Designation • Certiﬁ ed Property Manager (CPM) Designation AREAS OF EXPERTISE:

AREAS OF EXPERTISE: • Environmental Health and Safety • Ofﬁ ce and Retail Property Management • Facilities Planning and Project Management • Client Retention • Design and Operations of Building Systems • Tenant Construction • Finish Selection • Community Relations

BUILDING ENGINEERS

FROM LEFT TO RIGHT: GENE SCRUGGS, RODNEY REID, BRIAN EASON, EDDIE COUCH, CHRIS NICHOLS

Graham & Company’s building engineering staff promptly addresses tenant needs with a “solutions-oriented” approach, offering professional and reliable service.

GRAHAM & COMPANY HUNTSVILLE MARKET SURVEY 2007 19 ABOUT GRAHAM & COMPANY

HUNTSVILLE REAL ESTATE MARKET HUNTSVILLE LAND LEASE RATES PER SF COST PER ACRE $ OFFICE INDUSTRIAL RETAIL $ 30 300 ± 800 25 250 Minimum Maximum

20 200

15 150

10 100 THOUSANDS

5 50

0 0 Class A Class B Class A Class B Class A Class B Cummings Jetplex North Chase Retail Research Industrial Huntsville Industrial Land Minimum Maximum Park Park Industrial Park Park

ABOUT GRAHAM & COMPANY

Founded in 1978, Graham & Company is a full-service commercial real estate ﬁ rm based in Birmingham. With ofﬁ ces in Birmingham and Huntsville, Alabama and Jacksonville, Florida, the company offers professional services including sales, leasing, property management, appraisal, consulting, investment and development. In response to client demand, Graham & Company has systematically extended its range of services and geographic reach, now serving clients throughout Alabama and several surrounding states.

AFFILIATIONS

CORFAC International–Corporate Facility Advisors SIOR–Society of Industrial & Offi ce Realtors Counselors of Real Estate–CRE NAIOP–National Association of Industrial & Offi ce Properties Certifi ed Commercial Investment Member–CCIM IREM–Institute of Real Estate Management Building Owners and Managers Association–BOMA Appraisal Institute Huntsville Board of Realtors

GRAHAM & COMPANY SOUTHEAST, LLC 200 Westside Square, Suite 800 Huntsville, Alabama 35801

TEL 256.382.9010 - FAX 256.382.9011 www.GrahamCompany.com

“GRAHAM & COMPANY HAS PLAYED AN INTEGRAL ROLE IN THE SUCCESS OF OUR PROPERTY.

Executive Plaza Office Park’s occupancy rate was below 70%

when Graham took the leasing assignment – the 270,000 square foot

complex is now more than 90% leased.”

- Tom Corcoran -

PRESIDENT, CORCORAN-MADDOX COMPANIES

“GRAHAM & COMPANY HAS BEEN INSTRUMENTAL IN THE LEASING OF OUR PROPERTY

located at Madison Business Park South. Graham succeeded in finding

an appropriate tenant mix for a large portion of the unique space we had

to offer. I look forward to working with them on future endeavors.”

- John Owens -

EXECUTIVE MANAGER, INTERGRAPH CORPORATION HUNTSVILLE, AL Graham & Company Southeast, LLC www.GrahamCompany.com 200 Westside Square, Suite 800 Huntsville, Alabama 35801 Phone (256) 382-9010 Fax (256) 382-9011

GRAHAM & COMPANY PERSONNEL – HUNTSVILLE

PRINCIPALS OFFICE & INDUSTRIAL Steve Graham, MAI, CRE Bart Smith, CCIM, SIOR Mike Graham, CPM, SIOR Jeff Wilke, CCIM, SIOR Gardner Lee, CPM, SIOR Jeremy Pope Bentley Wilder MANAGING BROKER Bart Smith, CCIM, SIOR REAL ESTATE ASST. Erika Harless PROPERTY MANAGEMENT ADMINISTRATIVE ASST. Marshanne Castro, CPM Vickie Akers Jason Dugger, RPA, FMA Strelitzia Smith FACILITIES Eddie Couch RETAIL Brian Eason Marshanne Castro, CPM Chris Nichols Rodney Reid Gene Scruggs

BIRMINGHAM, AL JACKSONVILLE, FL Graham & Company, Inc. Graham & Company 2200 Woodcrest Place, Suite 210 Southeast, LLC Birmingham, Alabama 35209 4500 Salisbury Road, Suite 180 Phone (205) 871-7100 Jacksonville, FL 32216 Fax (205) 871-3331 Phone (904) 281-0003 Fax (904) 281-0849

INDIVIDUAL INDIVIDUAL MEMBERSHIPS MEMBERSHIPS