Market Insights Dallas/Fort Worth 2Q 2020 - INDUSTRIAL

Bradford Commercial Real Estate Services 3100 McKinnon Street, Suite 400 Dallas, Texas 75201

DALLAS-FORT WORTH INDUSTRIAL MARKET INSIGHTS 4Q2019 Table of Contents

BRADFORD DALLAS-FORT WORTH INDUSTRIAL TEAM 1

DALLAS - FORT WORTH OVERALL MARKET INSIGHT 2

SUBMARKET EXPERTISE • DFW Airport • East Dallas • Great Southwest 3 • North Fort Worth • Northeast Dallas • South Dallas • Stemmons Freeway • Northwest Dallas

• Bradford Corporate Office

• Bradford Field Offices

2 BinformedINDUSTRIAL MARKET EXPERTS

Brian Pafford, CCIM Michael W Spain Nick Talley Michael T Grant Executive Vice President Executive Vice President Executive Vice President Senior Vice President Managing Partner Managing Partner Managing Partner Managing Partner Stemmons Corridor Great Southwest Tarrant County Northeast Corridor 972.389.9002 972.337.9325 817.921.8177 972.776.7062

Brock Wilson Joe Santaularia Susan Singer, CCIM Jim Ferris Senior Vice President First Vice President Executive Vice President Vice President Managing Partner DFW Airport Brokerage Services Great Southwest DFW Airport 972.337.9336 972.776.7043 972.337.9334 972.776.7081

Erik Blais Shane Benner Jason Finch Josh Meraz Vice President Vice President Market Director Senior Associate Greater Fort Worth Greater Fort Worth Stemmons Corridor Great Southwest 817.921.8179 817.921.8174 972.389.9006 972.776.7037

Brandon Alexander Katherine Graham Noah Dodge Broker Associate Broker Associate Broker Associate Greater Fort Worth Greater Fort Worth Northeast Corridor 817.921.8180 817.921.8178 972.776.7101

3 INDUSTRIAL OVERALL MARKET INSIGHTS

DFW Industrial Markets (Flex, Shallow-Bay, Bulk) Binformed

Existing Inventory Vacancy Delivered Inventory Under Construction Net Leasing Period Under # Bldgs Total RBA Vacant SF Vacant % Absorption # Bldg Delivered # Bldgs Activity Overall DFW Industrial Vacancy Overall DFW Industrial Net Absorption Construction 2017 Q1 10,056 804,556,021 56,151,210 7.0% 5,466,822 48 11,540,956 90 24,086,910 13,449,919 7.2% 9,000,000 2017 Q2 10,078 810,394,842 55,689,286 6.9% 6,272,349 26 6,783,839 93 23,715,283 17,338,186 7.0% 8,000,000 2017 Q3 10,093 815,488,425 55,757,245 6.8% 4,967,624 19 5,230,995 102 27,195,293 14,352,719 7,000,000 2017 Q4 10,123 822,956,834 55,060,566 6.7% 7,302,654 32 6,893,143 100 26,394,036 12,245,519 6.8% 6,000,000 2018 Q1 10,130 820,231,242 51,406,844 6.3% 766,546 22 2,369,728 104 28,409,130 17,094,200 DFW6.6% Industrial Markets (Flex, Shallow-Bay, Bulk) 2018 Q2 10,156 828,052,811 53,341,580 6.4% 5,809,475 27 7,881,757 103 28,382,820 13,236,178 5,000,000 2018 Q3 10,189 835,970,625 55,415,807 6.6% 5,843,587 37 8,339,073 96 28,292,760 19,758,007 6.4% 4,000,000 2018 Q4 10,221 841,477,321 54,494,573 6.5% 6,056,640 28 5,157,017 108 32,550,859 14,584,764 Existing Inventory Vacancy3,000,000 Delivered Inventory Under Construction 6.2% Net Leasing 2019 Q1 10,244 848,015,202 55,702,351 6.6% 5,382,948 28 6,759,699 121 36,565,852 15,828,674 Period 2,000,000 Under 2019 Q2 10,263 855,019,185 55,978,169 6.5% 6,649,125 24 7,190,582 128 36,308,976 13,564,750 6.0% # Bldgs Total RBA Vacant SF Vacant1,000,000 % Absorption # Bldg Delivered # Bldgs Activity Overall DFW Industrial Vacancy Overall DFW Industrial Net Absorption Construction 2019 Q3 10,287 857,687,640 54,741,234 6.4% 3,942,474 24 2,668,455 133 38,331,434 16,706,990 0 5.8% 7.2% 2019 Q4 10,326 868,953,836 57,236,328 6.6% 8,739,746 40 11,331,661 121 33,705,929 18,519,677 2017 Q1 10,056 804,556,021 56,151,210 7.0% 20175,466,8222017 2017 2017 2018 2018482018 2018 201911,540,9562019 2019 2019 2020 202090 24,086,910 13,449,919 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 9,000,000 2020 Q1 10,355 876,313,979 55,748,270 6.4% 8,848,201 31 7,414,509 133 36,801,810 14,925,643 2017Q1 Q2Q2 Q3 Q4 Q1 10,078Q2 Q3 Q4 810,394,842Q1 Q2 Q3 Q455,689,286Q1 Q2 6.9% 6,272,349 26 6,783,839 93 23,715,283 17,338,186 2020 Q2 10,388 887,563,612 60,765,787 6.8% 6,232,116 33 11,249,633 119 28,267,806 14,557,064 7.0% 8,000,000 2017 Q3 10,093 815,488,425 55,757,245 6.8% 4,967,624 19 5,230,995 102 27,195,293 14,352,719 7,000,000 2017 OverallQ4 DFW 10,123Industrial Leasing822,956,834 Activity55,060,566 6.7% Overall7,302,654 DFW Industrial32 Construction6,893,143 100 26,394,036 12,245,519 6.8% DFW Industrial Statistics by Market 6,000,000 25,000,0002018 Q1 10,130 820,231,242 51,406,844 6.3% 766,546 22 2,369,728 104 28,409,130 17,094,200 Existing Inventory Vacancy Net Under Leasing 40,000,000 6.6% Market Deliveries 5,000,000 # Blds Total RBA Direct SF Vac % Absorption Const SF Activity 2018 Q2 10,156 828,052,811 53,341,580 6.4%35,000,000 5,809,475 27 7,881,757 103 28,382,820 13,236,178 20,000,000 30,000,000 DFW Airport Ind 646 82,194,812 7,006,191 8.5% 375,714 1,696,609 5,568,533 2,290,190 2018 Q3 10,189 835,970,625 55,415,807 6.6%25,000,000 5,843,587 37 8,339,073 96 28,292,760 19,758,007 6.4% 4,000,000 East Dallas Ind 619 48,434,738 3,216,778 6.6% 1,247,030 1,200,000 944,106 202,661 15,000,000 20,000,000 GSW/Arlington Ind 6.2% 2018 Q4 10,221 841,477,321 54,494,573 6.5% 6,056,640 28 5,157,017 108 32,550,859 14,584,764 3,000,000 1,145 117,025,556 7,292,798 (671,145) 401,557 576,123 1,457,221 15,000,000 6.2% North Ft Worth Ind 746 109,427,109 11,741,115 10.7% 1,244,139 4,604,642 7,850,240 1,559,757 10,000,0002019 Q1 10,244 848,015,202 55,702,351 6.6%10,000,000 5,382,948 28 6,759,699 121 36,565,852 15,828,674 2,000,000 Northeast Dallas Ind 1,545 113,213,166 7,842,343 6.9% 1,120,555 604,044 3,805,361 1,072,751 5,000,000 2019 Q2 10,263 855,019,185 55,978,169 6.5% 6,649,125 24 7,190,582 128 36,308,976 13,564,750 6.0% NW Dallas Ind 1,382 111,736,067 6,028,074 5.4% 20,967 47,483 2,699,985 1,433,048 5,000,000 0 1,000,000 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 NW Dallas Outly Ind 50 3,668,911 142,014 3.9% 39,344 0 86,000 21,700 2019 Q3 10,287 857,687,640 54,741,234 6.4% Q13,942,474Q2 Q3 Q4 Q1 Q224Q3 Q4 Q12,668,455Q2 Q3 Q4 Q1 Q2133 38,331,434 16,706,990 0 South Dallas Ind 702 104,296,003 8,531,174 8.2% (250,445) 0 2,435,240 3,585,951 0 5.8% 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 20192017 Q42017 2017 2017 10,3262018 2018 2018 2018868,953,8362019 2019 2019 201957,236,3282020 2020 6.6% 8,739,746 40 11,331,661 121 33,705,929 18,519,677 South Ft Worth Ind 1,469 82,461,019 3,330,405 4.0% 287,096 51,668 3,328,776 1,289,996 Delivered Under Construction 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 South Stemmons Ind 2,084 115,106,231 5,634,895 4.9% 2,818,280 2,643,630 973,442 1,643,789 2020 Q1 10,355 876,313,979 55,748,270 6.4% 8,848,201 31 7,414,509 133 36,801,810 14,925,643 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Totals 10,388 887,563,612 60,765,787 65.3% 6,231,535 11,249,633 28,267,806 14,557,064 2020 Q2 10,388 887,563,612 60,765,787 6.8% 6,232,116 33 11,249,633 119 28,267,806 14,557,064

Overall DFW Industrial Leasing Activity Overall DFW Industrial Construction *** NW Dallas Outly & Henderson and there isn't a tab DFW Industrial Statistics by Market 25,000,000 Existing Inventory Vacancy Net Under Leasing 40,000,000 Market Deliveries # Blds Total RBA Direct SF Vac % Absorption Const SF Activity 35,000,000 20,000,000 30,000,000 DFW Airport Ind 646 82,194,812 7,006,191 8.5% 375,714 1,696,609 5,568,533 2,290,190 25,000,000 East Dallas Ind 619 48,434,738 3,216,778 6.6% 1,247,030 1,200,000 944,106 202,661 15,000,000 20,000,000 GSW/Arlington Ind 6.2% 1,145 117,025,556 7,292,798 (671,145) 401,557 576,123 1,457,221 15,000,000 North Ft Worth Ind 746 109,427,109 11,741,115 10.7% 1,244,139 4,604,642 7,850,240 1,559,757 10,000,000 10,000,000 Northeast Dallas Ind 1,545 113,213,166 7,842,343 6.9% 1,120,555 604,044 3,805,361 1,072,751 5,000,000 NW Dallas Ind 1,382 111,736,067 6,028,074 5.4% 20,967 47,483 2,699,985 1,433,048 5,000,000 0 NW Dallas Outly Ind 3.9% 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 50 3,668,911 142,014 39,344 0 86,000 21,700 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 South Dallas Ind 702 104,296,003 8,531,174 8.2% (250,445) 0 2,435,240 3,585,951 0 South Ft Worth Ind 1,469 82,461,019 3,330,405 4.0% 287,096 51,668 3,328,776 1,289,996 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 Delivered Under Construction Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 South Stemmons Ind 2,084 115,106,231 5,634,895 4.9% 2,818,280 2,643,630 973,442 1,643,789 Totals 10,388 887,563,612 60,765,787 65.3% 6,231,535 11,249,633 28,267,806 14,557,064

*** NW Dallas Outly & Henderson and there isn't a tab

DFW Overall Industrial Existing Inventory Vacancy Delivered Inventory Under Construction Leasing Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity East Dallas Industrial Vacancy East Dallas Industrial Net Absorption Construction 8.0% 2016 Q4 607 44,163,036 2,516,665 5.7% 24,603 0 0 1 351,874 547,655 1,400,000 2017 Q1 607 44,163,036 2,550,282 5.8% (33,617) 0 0 1 351,874 194,838 7.0% 1,200,000 2017 Q2 607 44,163,036 2,325,128 5.3% 225,154 0 0 1 351,874 684,308 Existing Inventory Vacancy Delivered Inventory Under Construction 6.0% 1,000,000 Leasing 2017Period Q3 608 44,514,910 2,470,243 5.5%Net Absorption206,759 1 351,874 Under0 0 165,450 # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity East Dallas Industrial Vacancy East Dallas Industrial800,000 Net Absorption 2017 Q4 608 44,514,910 2,310,197 5.2% 160,046 0 0 Construction2 943,790 202,134 5.0% 2016 Q4 607 44,163,036 2,516,665 5.7% 24,603 0 0 1 351,874 547,655 8.0% 600,000 2018 Q1 608 44,514,910 2,356,066 5.3% (46,058) 0 0 3 1,430,990 531,119 4.0% 1,400,000 2017 Q1 607 44,163,036 2,550,282 5.8% (33,617) 0 0 1 351,874 194,838 2018 Q2 608 44,514,910 2,088,139 4.7% 268,116 0 0 6 2,408,929 964,0087.0% 1,200,000 400,000 2017 Q2 607 44,163,036 2,325,128 5.3% 225,154 0 0 1 351,874 684,308 3.0% 2018 Q3 610 45,068,670 2,056,341 4.6% 585,558 2 553,760 5 1,888,635 779,0486.0% 1,000,000 200,000 EAST2017 Q3DALLAS608 44,514,910 2,470,243 5.5% 206,759 1 351,874 0 0 165,450 2.0% 800,000 0 20172018 Q4 Q4 608611 44,514,91045,102,1362,310,1972,470,8985.2% 5.5%160,046 (381,091)0 01 33,4662 943,7904 202,1341,855,169 380,3925.0% 600,000 INDUSTRIAL OVERALL MARKET INSIGHTS SUBMARKET20182019 Q1 Q1 608612 44,514,91045,979,3662,356,0662,059,8475.3% 4.5% (46,058) 1,288,2810 01 877,2303 1,430,9904 531,1191,215,412 607,8794.0% 1.0% (200,000) 20182019 Q2 Q2 608613 44,514,91046,124,3262,088,1392,476,1354.7% 5.4%268,116 (271,328)0 01 144,9606 2,408,9294 964,0082,270,452 589,271 400,000 (400,000) 3.0% 0.0% 2018 Q3 610 45,068,670 2,056,341 4.6% 585,558 2 553,760 5 1,888,635 779,048 200,000 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2019 Q3 614 46,373,216 2,739,192 5.9% (14,167) 1 248,890 3 2,021,562 820,138 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2.0% 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 20182019 Q4 Q4 611616 45,102,13647,194,7782,470,8983,574,3595.5% 7.6%(381,091) (13,605)1 33,4662 821,5624 1,855,1691 380,3921,200,000 787,587 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 DFW Industrial Markets (Flex, Shallow-Bay, Bulk) Binformed 2019 Q1 612 45,979,366 2,059,847 4.5% 1,288,281 1 877,230 4 1,215,412 607,879 (200,000) 2020 Q1 616 47,194,778 3,263,308 6.9% 311,051 0 0 4 1,945,997 425,7471.0% 2019 Q2 613 46,124,326 2,476,135 5.4% (271,328) 1 144,960 4 2,270,452 589,271 (400,000) 0.0% Existing Inventory Vacancy Delivered Inventory Under Construction East Dallas Overview 2019 Q3 614 46,373,216 2,739,192 5.9% (14,167) 1 248,890 3 2,021,562 820,138 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 Net Leasing 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Period Under The East Dallas/Mesquite submarket is a Q4 Q1 Q2 Q3 Q4 Q1 Q2EastQ3 DallasQ4 Q1 Q2IndustrialQ3 Q4 Q1Leasing Activity East Dallas Industrial Construction # Bldgs Total RBA Vacant SF Vacant % Absorption # Bldg Delivered # Bldgs Activity Overall DFW Industrial Vacancy Overall DFW Industrial Net Absorption 2019 Q4 616 47,194,778 3,574,359 7.6% (13,605) 2 821,562 1 1,200,000 787,587 Construction longstanding transportation center and is home to 2017 Q1 10,056 804,556,021 56,151,210 7.0% 5,466,822 48 11,540,956 90 24,086,910 13,449,919 7.2% 2020 Q1Absorption616 47,194,778vs Previous3,263,308 Qtr 6.9% vs311,051 12 Months Ago 0 0 4 1,945,997 425,747 1,200,000 9,000,000 one of Dallas-Fort Worth’s major intermodal hubs. 40,000,000 2017 Q2 10,078 810,394,842 55,689,286 6.9% 6,272,349 26 6,783,839 93 23,715,283 17,338,186 311,051 -13,605 1,288,281 7.0% 8,000,000 Vacancies in East Dallas/Mesquite have remained East Dallas Industrial Leasing Activity East Dallas Industrial Construction 2017 Q3 10,093 815,488,425 55,757,245 6.8% 4,967,624 19 5,230,995 102 27,195,293 14,352,719 Vacancy 35,000,000 7,000,000 above the rest of the metroplex this over the last vs Previous Qtr vs 12 Months Ago 1,000,000 2017 Q4 10,123 822,956,834 55,060,566 6.7% 7,302,654 32 6,893,143 100 26,394,036 12,245,519 6.8% Absorption vs Previous Qtr vs 12 Months Ago 1,200,000 6,000,000 decade. In terms of construction, a large portion 6.9% 7.6% 4.5% 40,000,000 2018 Q1 10,130 820,231,242 51,406,844 6.3% 766,546 22 2,369,728 104 28,409,130 17,094,200 30,000,000 6.6% of recent new builds were build-to-suits, including 311,051 -13,605 1,288,281 5,000,000 U/C SF 2018 Q2 10,156 828,052,811 53,341,580 6.4% 5,809,475 27 7,881,757 103 28,382,820 13,236,178 vs Previous Qtr vs 12 Months Ago 35,000,000 a 352,000-SF facility for FedEx Ground and an Vacancy vs Previous Qtr vs 12 Months Ago 1,000,000 800,000 25,000,000 2018 Q3 10,189 835,970,625 55,415,807 6.6% 5,843,587 37 8,339,073 96 28,292,760 19,758,007 6.4% 4,000,000 877,000-SF facility for Ashley Furniture. Exeter 1,945,9976.9% 7.6%1,200,000 4.5% 1,215,412 2018 Q4 10,221 841,477,321 54,494,573 6.5% 6,056,640 28 5,157,017 108 32,550,859 14,584,764 3,000,000 30,000,000 6.2% Property Group broke ground and added a four- DeliveredU/C SF SF vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 Ago Months Ago 20,000,000 2019 Q1 10,244 848,015,202 55,702,351 6.6% 5,382,948 28 6,759,699 121 36,565,852 15,828,674 2,000,000 800,000 600,000 25,000,000 building industrial park just west of the intermodal, 1,945,9970 1,200,000821,562 1,215,412 877,230 2019 Q2 10,263 855,019,185 55,978,169 6.5% 6,649,125 24 7,190,582 128 36,308,976 13,564,750 6.0% 1,000,000 15,000,000 totaling more than 1 million SF. Delivered SF vs Previous Qtr vs 12 Months Ago 20,000,000 2019 Q3 10,287 857,687,640 54,741,234 6.4% 3,942,474 24 2,668,455 133 38,331,434 16,706,990 0 Leasing Activity vs Previous Qtr vs 12 Months Ago 5.8% 600,000 2019 Q4 10,326 868,953,836 57,236,328 6.6% 8,739,746 40 11,331,661 121 33,705,929 18,519,677 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 0 821,562 877,230 400,000 10,000,000 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 The submarket centers on Union Pacific Railroad’s 425,747 787,587 607,879 15,000,000 2020 Q1 10,355 876,313,979 55,748,270 6.4% 8,848,201 31 7,414,509 133 36,801,810 14,925,643 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Leasing Activity vs Previous Qtr vs 12 Months Ago intermodal hub in Mesquite. After mainly ignoring 5,000,000 2020 Q2 10,388 887,563,612 60,765,787 6.8% 6,232,116 33 11,249,633 119 28,267,806 14,557,064 425,747 787,587 607,879 400,000 10,000,000 East Dallas/Mesquite in the ‘90s, developers East Dallas Vital Statistics 200,000 ramped up construction in the early 2000s, when 5,000,000 0 Overall DFW Industrial Leasing Activity Overall DFW Industrial Construction the intermodal was being constructed. Nearly half East Dallas Vital Statistics 200,000 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 1,400,000 8.0% 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 DFW Industrial Statistics by Market of the total inventory here delivered since 2000, 0 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 25,000,000 40,000,000 1,400,0001,200,000 8.0% 7.0% Existing Inventory Vacancy Net Under Leasing 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019Q4 Q12019Q22020Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Market Deliveries though almost all of that came over the last decade. 1,200,0001,000,000 0 # Blds Total RBA Direct SF Vac % Absorption Const SF Activity 35,000,000 7.0% 6.0% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Delivered Under Construction 20,000,000 30,000,000 1,000,000800,000 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 DFW Airport Ind 646 82,194,812 7,006,191 8.5% 375,714 1,696,609 5,568,533 2,290,190 6.0% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Delivered Under Construction 25,000,000 800,000 5.0% East Dallas Ind 619 48,434,738 3,216,778 6.6% 1,247,030 1,200,000 944,106 202,661 Leasing 600,000 15,000,000 20,000,000 600,000 5.0% GSW/Arlington Ind 6.2% East Dallas/Mesquite is one of four submarkets 400,000 4.0% 1,145 117,025,556 7,292,798 (671,145) 401,557 576,123 1,457,221 15,000,000 400,000 4.0% North Ft Worth Ind 746 109,427,109 11,741,115 10.7% 1,244,139 4,604,642 7,850,240 1,559,757 containing an intermodal terminal in the Dallas- 200,000 3.0% 10,000,000 10,000,000 200,000 3.0% Northeast Dallas Ind 1,545 113,213,166 7,842,343 6.9% 1,120,555 604,044 3,805,361 1,072,751 5,000,000 Fort Worth metroplex. Unsurprisingly, the majority 0 0 2.0% 2.0% NW Dallas Ind 1,382 111,736,067 6,028,074 5.4% 20,967 47,483 2,699,985 1,433,048 5,000,000 0 of the submarket’s inventory is clustered around (200,000)(200,000) NW Dallas Outly Ind 3.9% 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 the intermodal. Due to the presence of freight 1.0% 1.0% 50 3,668,911 142,014 39,344 0 86,000 21,700 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 (400,000)(400,000) South Dallas Ind 702 104,296,003 8,531,174 8.2% (250,445) 0 2,435,240 3,585,951 0 rail, and the vast amount of light industrial and (600,000)(600,000) 0.0% 0.0% South Ft Worth Ind 1,469 82,461,019 3,330,405 4.0% 287,096 51,668 3,328,776 1,289,996 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 Delivered Under Construction manufacturing space here and in the surrounding 2016201620172017201720172017 20172017 2018201720182018201820182018201820192018201920192019 2019 20202019 2019 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 South Stemmons Ind 2,084 115,106,231 5,634,895 4.9% 2,818,280 2,643,630 973,442 1,643,789 area, a large portion of the tenant base consists Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 of 3PLs and manufacturing parts suppliers. IDI Net Absorption Delivered Vacant % Totals 10,388 887,563,612 60,765,787 65.3% 6,231,535 11,249,633 28,267,806 14,557,064 Net Absorption Delivered Vacant % Logistics completed the 487,000-SF Building D at Skyline Trade Center in March 2018, and the building was leased by Elements International in September 2018. *** NW Dallas Outly & Henderson and there isn't a tab Vacancies in East Dallas/Mesquite have trended above the metro average over the past few years. More recently, with a series of speculative supply completing in late 2019, vacancy rates rose sharply. Until those buildings fill up, vacancies could remain elevated over the next few quarters. However, the submarket will likely feel the impact of the coronavirus pandemic over the next few months, though the full scope of any potential downturn is uncertain at this point.

Most tenant movement involves relatively smaller spaces. However, FedEx moved into its new 352,000-SF facility in September 2017, and Elements International took 487,000 SF at the Skyline Trade Center in 18Q3. Ashley Furniture opened an 877,000 SF distribution hub in 19Q1. In terms of move-outs, Shippers Warehouse vacated 420,000 SF at the Eastpoint Business Center in early 2018 for a new facility in the SE Dallas/I-45 Submarket (which also contains a Union Pacific intermodal facility).

Movers & Shakers Largest Vacancies: Tenant SF Building 3000 Skyline Drive – 753,000 sf Tricon Precast 98,259 5200 Grand Avenue 4624 Clover Haven St – 584,089 sf Bingham Manufacturing 20,000 2000 Airport Rd 5151 Samuell Blvd – 442,035 sf

East Dallas

East Dallas Existing Inventory Vacancy Delivered Inventory Under Construction Leasing Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity DFW Airport Industrial Vacancy DFW Airport Industrial Net Absorption Construction 9.0% 2017 Q1 608 71,756,303 4,512,247 6.3% 361,908 12 1,169,831 7 1,922,581 3,019,734 2,500,000 2017 Q2 610 72,292,666 5,381,328 7.4% (332,718) 2 536363 8 1,770,472 1,826,378 8.0% 2,000,000 2017 Q3 Existing611 Inventory72,372,942 4,325,918Vacancy 6.0% 1,077,686Delivered Inventory1 Under80,276 Construction11 2,836,992 2,041,458 7.0% Leasing 1,500,000 2017Period Q4 615 74,605,830 3,952,523 5.3%Net Absorption1,769,249 4 1,290,304 Under10 1,765,623 1,154,060 # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity DFW6.0% Airport Industrial Vacancy DFW Airport Industrial Net Absorption 2018 Q1 618 75,005,722 5,364,670 7.2% -1,002,830 3 399,892Construction16 3,110,110 1,956,173 1,000,000 2017 Q1 608 71,756,303 4,512,247 6.3% 361,908 12 1,169,831 7 1,922,581 3,019,734 9.0% 5.0% 2018 Q2 619 75,505,722 5,149,464 6.8% 715,206 1 500,000 17 3,215,500 1,892,511 2,500,000 2017 Q2 610 72,292,666 5,381,328 7.4% (332,718) 2 536363 8 1,770,472 1,826,378 8.0% 500,000 2018 Q3 625 76,163,642 5,258,855 6.9% 548,529 6 657,920 12 4,094,100 3,924,135 4.0% 2,000,000 2017 Q3 611 72,372,942 4,325,918 6.0% 1,077,686 1 80,276 11 2,836,992 2,041,458 7.0% 0 20172018 Q4 Q4 615629 74,605,83076,986,4553,952,5235,560,8725.3% 7.2%1,769,249 520,7964 1,290,3044 822,81310 1,765,6238 1,154,0603,271,287 2,523,509 3.0% 1,500,000 6.0% (500,000) DFW 20182019AIRPORT Q1 Q1 618633 75,005,72277,865,5205,364,6706,114,3627.2% 7.9%-1,002,830 325,5753 399,8924 879,06516 3,110,1109 1,956,173DFW4,730,690 2,315,527 AIRPORT 1,000,000 2.0% 5.0% 20182019 Q2 Q2 619637 75,505,72280,257,7425,149,4646,493,3536.8% 8.1%715,206 2,013,2311 500,0004 2,392,22217 3,215,5008 1,892,5112,980,209 2,137,595 (1,000,000) 1.0% 500,000 2018 Q3 625 76,163,642 5,258,855 6.9% 548,529 6 657,920 12 4,094,100 3,924,135 4.0% SUBMARKET2019 Q3 637 80,257,742 5,878,417 7.3% 614,936 0 0 16 4,750,974 2,074,274 0 (1,500,000) 2018 Q4 629 76,986,455 5,560,872 7.2% 520,796 4 822,813 8 3,271,287 2,523,509 3.0% 0.0% 2019 Q4 637 80,257,742 5,633,874 7.0% 244,543 0 0 18 5,213,002 2,076,891 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2019 Q1 633 77,865,520 6,114,362 7.9% 325,575 4 879,065 9 4,730,690 2,315,527 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019(500,000)2019 2019 2020 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 Q1 639 80,498,203 5,685,296 7.1% 189,039 2 240,461 22 6,994,142 2,947,8132.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 Q2 637 80,257,742 6,493,353 8.1% 2,013,231 4 2,392,222 8 2,980,209 2,137,595 (1,000,000) 2020 Q2 1.0% 2019 Q3 637646 80,257,74282,194,8125,878,4177,006,1917.3% 8.5% 614,936 375,7140 07 1,696,60916 4,750,97418 2,074,2745,568,533 2,290,190 (1,500,000) 0.0% 2019 Q4 637 80,257,742 5,633,874 7.0% 244,543 0 0 18 5,213,002 2,076,891 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 DFW Airport Overview 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 Q1 639 80,498,203 5,685,296 7.1% 189,039 2 240,461 22 6,994,142 2,947,813 Q1 Q2 Q3 Q4 Q1 Q2 Q3 DFWQ4 Q1 AirportQ2 Q3 IndustrialQ4 Q1 Q2 Leasing Activity DFW Airport Industrial Construction Despite ranking among the most supply- 2020 Q2Absorption646 82,194,812vs Previous7,006,191 Qtr 8.5% vs375,714 12 Months Ago 7 1,696,609 18 5,568,533 2,290,190 4,500,000 heavy submarkets in the metroplex over the 40,000,000 last decade, with 30% of the total inventory 375,714 189,039 2,013,231 DFW 4,000,000Airport Industrial Leasing Activity DFW Airport Industrial Construction being added since 2010, fundamentals in Vacancy vs Previous Qtr vs 12 Months Ago 35,000,000 Absorption vs Previous Qtr vs 12 Months Ago 4,500,000 East DFW Airport/Las Colinas have remained 8.5% 7.1% 8.1% 3,500,000 40,000,000 375,714 189,039 2,013,231 30,000,000 healthy. Due to land constraints, virtually 4,000,000 VacancyU/C SF vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 Ago Months Ago 35,000,000 all current and future construction will take 3,000,000 25,000,000 5,568,533 6,994,142 2,980,209 place on land owned by the Dallas/Fort Worth 8.5% 7.1% 8.1% 3,500,000 30,000,000 DeliveredU/C SF SF vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 Ago Months Ago 2,500,000 20,000,000 International Airport. Rent growth continues 3,000,000 25,000,000 to move in the right direction, and with 5,568,5331,696,609 6,994,142240,461 2,980,209 2,392,222 Delivered SF vs Previous Qtr vs 12 Months Ago 2,500,000 2,000,000 15,000,000 vacancies at 9.8%, growth is uncertain due Leasing Activity vs Previous Qtr vs 12 Months Ago 20,000,000 1,696,609 240,461 2,392,222 to possible impacts of the pandemic. This is 2,290,190 2,947,813 2,137,595 2,000,000 1,500,000 15,000,000 10,000,000 Leasing Activity also one of the more liquid submarkets in the vs Previous Qtr vs 12 Months Ago 1,500,000 10,000,000 5,000,000 metro, and national and institutional firms are 2,290,190 2,947,813 2,137,595 1,000,000 DFW Airport Vital Statistics 1,000,000 5,000,000 active here. 500,000 0 DFW Airport Vital Statistics 0 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 3,000,000 9.0% 500,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 West DFW Airport/Grapevine has performed 0 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 3,000,0002,500,000 9.0% 8.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 0 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 well for several quarters now. Steady 2,500,000 8.0% 2,000,000 7.0% 2017 2017 2017 2017 2018 2018Q12018Q22018Q32019 Q42019 2019Q1 2019Q2 2020Q32020Q4 Q1 Q2 Q3 Q4 Q1 Q2 Delivered Under Construction absorption in existing inventory and robust 2,000,000 7.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Delivered Under Construction 1,500,000 6.0% leasing for new speculative projects have 1,500,000 6.0% enabled vacancies to remain low, for now. 1,000,0001,000,000 5.0% 5.0% Vacancy rates will face greater pressure as 500,000500,000 4.0% 4.0% several projects are expected to deliver over 0 0 3.0% 3.0% the coming quarters. While there is a higher (500,000)(500,000) 2.0% 2.0% premium on rents compared to nearby (1,000,000)(1,000,000) 1.0% 1.0% submarkets, rent growth remains well above (1,500,000)(1,500,000) 0.0% 0.0% historical norms. 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 Q12017Q22017Q3 2017Q4 2017Q1 2018Q2 Q32018Q42018Q12018Q22019Q3 2019Q4 2019Q1 2019Q2 2020 2020 Q1Net AbsorptionQ2 Q3 Q4 Q1 Q2DeliveredQ3 Q4 Q1 Q2VacantQ3 % Q4 Q1 Q2 Dallas/Fort Worth International Airport Net Absorption Delivered Vacant % is the primary driver of demand for this submarket. The airport is not only one of the busiest in the U.S. for passenger travel, but it ranks as one of the largest cargo airports in the country, and roughly one-third of the submarket’s inventory is within its boundaries. Though most major airport-related distribution facilities and tenants are in the neighboring East DFW Airport/Las Colinas Submarket, many large tenants in West DFW Airport/Grapevine are dependent on air transportation and the logistics industry. The submarket’s location also gives tenants access to major arteries, including Highway 360, Highway 114, Highway 121, and Highway 183/I-820. Due to its central location, virtually anywhere in the metroplex can be reached within one hour, even in heavy traffic.

Leasing Facilities in the East DFW Airport/Las Colinas Submarket are well-positioned to take full advantage of the superb population growth in North Texas. The submarket runs the gamut in terms of building quality and type, ranging from smaller warehouse/ distribution facilities to massive. East DFW Airport/Las Colinas holds its fair share of third-party logistics tenants, as well as companies involved in air cargo logistics. Notably, part of the submarket is designated as a Triple Freeport tax exemption zone.

In February, Amazon announced it would be creating 1,000 jobs at its new distribution center in Irving. The 1,000,000 SF fulfillment center at the DFW Commerce Center is anticipated to open in late 2020. A few key leases came in late 2019. Aviation training company Avenger Flight Group has signed a 116,000 SF lease at Valley View at DFW Airport. Meanwhile, Waterlogic signed a 111,102 SF lease with Prologis Freeport Corp. Center. Both companies are expected to move into their new spaces in mid- 2020. DFW Airport

Vacancies typically trend below the metro average, as well as neighboring submarkets like East DFW Airport/Las Colinas and

DFW Airport

Existing Inventory Vacancy Delivered Inventory Under Construction Leasing Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity North Fort Worth Industrial Vacancy North Fort Worth Industrial Net Absorption Construction 9.0% 2016 Q4 658 85,808,255 7,083,476 8.3% 1,597,475 7 1,278,827 14 4,888,368 1,507,567 2,500,000 2017 Q1 664 87,721,167 7,191,750 8.2% 1,804,638 6 1,912,912 15 5,757,345 2,946,635 8.0% 2017 Q2 666 88,299,376 6,023,557 6.8% 1,746,402 2 578,209 23 5,905,248 2,329,834 7.0% 2,000,000 2017 Q3 671 89,719,761 5,361,897 6.0% 2,082,045 5 1,420,385 21 4,742,613 515,067 6.0% 1,500,000 2017 Q4 674 90,290,535 4,782,865 5.3% 1,149,406 3 570,774 24 5,839,872 1,743,538 5.0% 2018 Q1 678 90,401,235 3,822,639 4.2% 1,070,926 4 110,700 25 6,399,672 2,076,086 1,000,000 2018 Q2 684 91,419,811 3,996,202 4.4% 845,013 6 1,018,576 25 8,160,118 674,719 4.0% 2018 Q3 693 93,583,779 6,254,347 6.7% (94,177) 9 2,163,968 20 6,573,120 895,078 3.0% 500,000 2018 Q4 701 95,961,233 7,610,544 7.9% 699,427 6 2,055,624 18 5,845,496 667,821 2.0% 0 2019 Q1 705 97,754,259 8,010,941 8.2% 1,392,629 4 1,793,026 22 8,500,812 2,197,766 1.0% 2019 Q2 709 98,237,259 7,617,823 7.8% 865,212 4 483,000 34 12,093,689 774,713 (500,000) 0.0% 2019 Q3 711 98,286,754 5,959,547 6.1% 1,707,771 2 49,495 38 13,040,421 1,999,623 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 Q4 721 101,960,636 7,574,004 7.4% 2,059,425 10 3,673,882 36 12,226,628 804,818 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 Q1 733 104,692,923 8,353,712 8.0% 1,952,579 12 2,732,287 34 11,530,371 3,006,476 North Fort Worth Industrial Leasing Activity North Fort Worth Industrial Construction Absorption vs Previous Qtr vs 12 Months Ago 3,500,000 40,000,000 1,952,579 2,059,425 1,392,629 Vacancy vs Previous Qtr vs 12 Months Ago 3,000,000 35,000,000 8.0% 7.4% 8.2% 30,000,000 U/C SF vs Previous Qtr vs 12 Months Ago 2,500,000 25,000,000 11,530,371 12,226,628 8,500,812 2,000,000 Delivered SF vs Previous Qtr vs 12 Months Ago 20,000,000 2,732,287 3,673,882 1,793,026 1,500,000 15,000,000 Leasing Activity vs Previous Qtr vs 12 Months Ago 3,006,476 804,818 2,197,766 10,000,000 1,000,000 5,000,000 North Fort Worth Vital Statistics 500,000 0 4,000,000 9.0% 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 3,500,000 8.0% 0 3,000,000 7.0% 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Delivered Under Construction 2,500,000 6.0% 2,000,000 5.0% 1,500,000 4.0% 1,000,000 3.0% 500,000 2.0% 0 1.0% (500,000) 0.0% Upper Great Southwest. Increased development activity will place supply-side pressure on vacancy rates in the short term. 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 The main drawback to this submarket is the price—rents are significantly higher than nearby submarkets since the majority Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 of industrial zoned land here falls within the boundaries of the Dallas/Fort Worth International Airport itself. One of the largest Net Absorption Delivered Vacant % leases signed as of the first half of 2020 was Ameripac signed a 401,000 SF lease in Prologis DFW Mustang Park.

Movers & Shakers Largest Vacancies: Tenant SF Building DFW Commerce Center Bldg I – 1,000,584 sf Amazon 1,000,584 2601 S Airfield Drive Passport Logistics Center – 988,000 sf Tempur Sealy 585,910 2650 Rental Car Dr 2700 Market Street – 374,812 sf CFM Materials 112,340 3051 W Airfield Rd DFW Distribution Center- 252,400 sf Furniture of America 100,398 2601 W Airport Freeway 801 Industrial Blvd – 204,556 sf Ameripac 401,280 951 Mustang Drive Havertys Furniture 394,000 770 Gateway Blvd Union Supply Group 313,723 2500 Regent Blvd Legendzway Distribution 267,254 2600 Market Street

North Fort Worth Existing Inventory Vacancy Delivered Inventory Under Construction Leasing Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity Great Southwest Industrial Vacancy Great Southwest Industrial Net Absorption Construction 103,437,765 10.0% 2017 Q1 1,103 8,774,051 8.5% 540,463 8 2,206,940 15 5,527,773 2,509,226 2,500,000 2017 Q2 1,109 106,456,337 9,359,970 8.8% 2,432,653 6 3,018,572 12 3,930,649 3,185,386 9.0% 2017 Q3 1,111 107,261,877 9,714,965 9.1% 450,545 2 805,540 14 5,053,685 2,463,255 8.0% 2,000,000 Existing Inventory Vacancy Delivered Inventory Under Construction 108,736,078 Leasing 2017Period Q4 1,118 9,942,500 9.1%Net Absorption1,246,666 8 1,759,201 Under6 3,294,484 2,954,112 7.0% 1,500,000 # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity Great Southwest Industrial Vacancy Great Southwest Industrial Net Absorption 2018 Q1 1,119 108,876,660 9,480,796 8.7% 430,166 1 25,536 Construction10 4,345,764 4,354,736 6.0% 2017 Q1 1,103 103,437,765 8,774,051 8.5% 540,463 8 2,206,940 15 5,527,773 2,509,226 10.0% 1,000,000 2018 Q2 1,121 109,945,608 8,343,937 7.6% 2,205,807 2 1,068,948 8 3,276,816 2,655,448 5.0% 2,500,000 2017 Q2 1,109 106,456,337 9,359,970 8.8% 2,432,653 6 3,018,572 12 3,930,649 3,185,386 9.0% 2018 Q3 1,121 109,945,608 6,854,927 6.2% 1,489,010 0 0 13 4,466,371 2,790,724 500,000 2017 Q3 1,111 107,261,877 9,714,965 9.1% 450,545 2 805,540 14 5,053,685 2,463,255 8.0% 4.0% 2,000,000 2018 Q4 1,122 110,056,076 5,425,493 4.9% 1,539,902 1 110,468 20 6,662,635 3,058,816 GREAT SOUTHWEST2017 Q4 1,118 108,736,078 9,942,500 9.1% 1,246,666 8 1,759,201 6 GREAT3,294,484 2,954,112 SOUTHWEST7.0% 3.0% 1,500,000 0 2019 Q1 1,127 111,820,867 4,847,230 4.3% 2,343,054 5 1,764,791 17 5,049,264 2,034,195 2018 Q1 1,119 108,876,660 9,480,796 8.7% 430,166 1 25,536 10 4,345,764 4,354,736 6.0% 2.0% 1,000,000 (500,000) 20182019 Q2 Q2 1,1211,131 109,945,608113,021,3318,343,9375,451,8447.6% 4.8% 2,205,807 595,850 2 1,068,9484 1,200,4648 3,276,81614 2,655,4484,004,225 1,033,373 5.0% 1.0% SUBMARKET20182019 Q3 Q3 1,1211,137 109,945,608113,441,2796,854,9276,684,8566.2% 5.9% 1,489,010 (813,064)0 60 419,94813 4,466,3718 2,790,7243,584,277 2,058,687 500,000 (1,000,000) 4.0% 0.0% 20182019 Q4 Q4 1,1221,140 110,056,076114,555,7745,425,4936,177,7644.9% 5.4% 1,539,9021,621,587 1 110,4683 1,114,49520 6,662,6356 3,058,8163,045,905 2,644,231 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 3.0% 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 20190 2020 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 Q1 1,127 111,820,867 4,847,230 4.3% 2,343,054 5 1,764,791 17 5,049,264 2,034,195 2020 Q1 1,144 116,623,999 6,220,096 5.3% 2,025,893 4 2,068,225 2 977,680 1,605,7592.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 Q2 1,131 113,021,331 5,451,844 4.8% 595,850 4 1,200,464 14 4,004,225 1,033,373 (500,000) 2020 Q2 1,145 117,025,556 7,292,798 6.2% (671,145) 1 401,557 1 576,123 1,457,2211.0% 2019 Q3 1,137 113,441,279 6,684,856 5.9% (813,064) 6 419,948 8 3,584,277 2,058,687 (1,000,000) 0.0% Great Southwest Overview 2019 Q4 1,140 114,555,774 6,177,764 5.4% 1,621,587 3 1,114,495 6 3,045,905 2,644,231 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2017 2017 2017 2017 2018Great2018 2018 Southwest2018 2019 2019 2019 Industrial2019 2020 2020 Leasing Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3GreatQ4 Q1 SouthwestQ2 Q3 Q4 Q1 IndustrialQ2 Construction The Arlington Submarket is a secondary 2020 Q1 1,144 116,623,999 6,220,096 5.3% 2,025,893 4 2,068,225 2 977,680 1,605,759 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 distribution node between Fort Worth and Dallas. 2020 Q2Absorption1,145 117,025,556vs Previous7,292,798 Qtr 6.2% vs (671,145)12 Months Ago 1 401,557 1 576,123 1,457,221 5,000,000 40,000,000 Over the current development cycle, most new (671,145) 2,025,893 595,850 4,500,000 product rests along the intersection of 360 and Vacancy vs Previous Qtr vs 12 Months Ago Great Southwest Industrial Leasing Activity Great Southwest35,000,000 Industrial Construction I-20. Vacancy levels spiked due to a series of Absorption vs Previous Qtr vs 12 Months Ago 5,000,000 4,000,000 6.2% 5.3% 4.8% 40,000,000 30,000,000 large deliveries in late 2019. Of note, 400,000 SF (671,145) 2,025,893 595,850 entered the market at Cooper and I-20. U/C SF vs Previous Qtr vs 12 Months Ago 4,500,000 3,500,000 Vacancy vs Previous Qtr vs 12 Months Ago 35,000,000 25,000,000 acancies in Lower Great Southwest have 576,123 977,680 4,004,225 6.2% 5.3% 4.8% 4,000,000 3,000,000 decreased significantly throughout the last Delivered SF vs Previous Qtr vs 12 Months Ago 30,000,000 20,000,000 U/C SF vs Previous Qtr vs 12 Months Ago 3,500,000 decade and have leveled off in recent years, 2,500,000 25,000,000 576,123401,557 977,6802,068,225 4,004,2251,200,464 settling in at 3.9%. The submarket hasn’t seen as 3,000,000 15,000,000 Leasing Activity 2,000,000 much new supply as neighboring Upper Great Delivered SF vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 AgoMonths Ago 20,000,000 2,500,000 401,5571,457,221 2,068,2251,605,759 1,200,4641,033,373 10,000,000 Southwest, but deliveries have ticked up in 2019. 1,500,000 15,000,000 Over the last twelve months1.7 million square Leasing Activity vs Previous Qtr vs 12 Months Ago 2,000,000 5,000,000 1,000,000 10,000,000 feet has delivered, there is currently 0 square 1,457,221 Great1,605,759 Southwest Vital1,033,373 Statistics 1,500,000 feet under construction. Asking rents land below 5,000,000 0 500,000 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 3,500,000 10.0% 1,000,000 the metro average, but rent growth has trended Great Southwest Vital Statistics Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 0 0 higher at almost 6% annually. 3,000,000 9.0% 500,000 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 3,500,000 10.0% 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2,500,000 8.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 DeliveredQ4 Q1 Q2 Under Construction 3,000,000 9.0% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Upper Great Southwest is one of the largest 2,000,000 7.0% 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2,500,000 8.0% industrial submarkets in the metroplex and is Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Delivered Under Construction 2,000,0001,500,000 7.0% 6.0% a common hot spot for speculative projects. 1,500,0001,000,000 6.0% 5.0% Occupancies have recovered from the most 1,000,000500,000 5.0% 4.0% recent supply wave, and occupancy is trending 500,000 0 4.0% 3.0% below the metro average after the most recent (500,000)0 3.0% 2.0% supply wave. However, with more than 1.4 (1,000,000)(500,000) 2.0% 1.0% million SF underway, much of which is spec, (1,000,000) 1.0% (1,500,000) 0.0% (1,500,000) 0.0% leasing dynamics are expected to take another hit 20172017201720172018201820182018201920192019201920202020 in the short term. Annual rent growth is robust 20172017201720172018201820182018201920192019201920202020 Q1Q1Q2Q2Q3 Q3Q4 Q4Q1 Q1Q2 Q3Q2 Q4Q3 Q1Q4Q2Q1Q3 Q2Q4 Q3Q1 Q4Q2 Q1 Q2 4.4%, ranking among the top submarkets in the Net Absorption Delivered Vacant % metroplex. Net Absorption Delivered Vacant %

Leasing After record levels of speculative supply caused fundamentals to weaken in 2016 and 2017, leasing on new assets has picked up. Absorption was boosted by 3PLs like UPS, which moved into more than 1 million SF at the Arlington Commerce Center in 2017, and FedEx, which took 365,000 SF at Liberty Park GSW South in 2018. Also, telecom logistics firm Tellworks Communications took 723,000 SF at a newly built facility at Park 20/360 in 18Q1, and Rent the Runway signed on for 320,000 SF at a new build in Cooper I-20 in 18Q2. Supply and absorption have moderated in recent quarters, compared to the supply wave in 2016 and 2017. A handful of spec projects completed in 2019, though these buildings have smaller footprints, so the impact to vacancy is less dramatic.

With 42.5 million SF, Lower Great Southwest is one of the largest industrial submarkets in the metroplex. But despite its location and transportation advantages, the submarket was historically plagued with structurally high vacancies and low asking rents. The last decade has been different, though, as demand for space with access to both sides of the metroplex and to Dallas/Fort Worth International Airport has helped vacancies compress to unprecedented lows. Occupancies took a hit in early 2018 when Restoration Hardware moved out of 858,000 SF at the 161 Pioneer Distribution Center. However, the building didn’t remain on the market for long, as Living Spaces agreed to take the entire facility in 18Q3. In early 2020, NorthPoint Development completed a 1.5 million square foot facility for Home Depot. Vacancies have been moving in the right direction, currently sitting at 3.9%.

Similar to those in the D-FW metro as a whole, construction in Upper Great Southwest has ramped up in recent years. With about 12.8 million SF of space delivering since 2014, accounting for about 20% of the total inventory, making this submarket one Great Southwest of the most active in terms of new construction. Unlike submarkets in South Dallas and North Fort Worth, where massive single- tenant facilities make up the bulk of new supply, new construction in Upper Great Southwest generally consists of multi-tenant properties that target tenants seeking 100,000–300,000 SF. In fact, of the roughly 40 assets that have come to market in the last Great Southwest decade, more than two-thirds are multi-tenant facilities.

Existing Inventory Vacancy Delivered Inventory Under Construction Leasing Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity Great Southwest Industrial Vacancy Great Southwest Industrial Net Absorption Construction 2017 Q1 103,437,765 10.0% 1,103 8,774,051 8.5% 540,463 8 2,206,940 15 5,527,773 2,509,226 2,500,000 2017 Q2 1,109 106,456,337 9,359,970 8.8% 2,432,653 6 3,018,572 12 3,930,649 3,185,386 9.0% 2017 Q3 1,111 107,261,877 9,714,965 9.1% 450,545 2 805,540 14 5,053,685 2,463,255 8.0% 2,000,000 2017 Q4 1,118 108,736,078 9,942,500 9.1% 1,246,666 8 1,759,201 6 3,294,484 2,954,112 7.0% 1,500,000 2018 Q1 1,119 108,876,660 9,480,796 8.7% 430,166 1 25,536 10 4,345,764 4,354,736 6.0% 1,000,000 2018 Q2 1,121 109,945,608 8,343,937 7.6% 2,205,807 2 1,068,948 8 3,276,816 2,655,448 5.0% 500,000 2018 Q3 1,121 109,945,608 6,854,927 6.2% 1,489,010 0 0 13 4,466,371 2,790,724 4.0% 2018 Q4 1,122 110,056,076 5,425,493 4.9% 1,539,902 1 110,468 20 6,662,635 3,058,816 3.0% 0 2019 Q1 1,127 111,820,867 4,847,230 4.3% 2,343,054 5 1,764,791 17 5,049,264 2,034,195 2.0% 2019 Q2 1,131 113,021,331 5,451,844 4.8% 595,850 4 1,200,464 14 4,004,225 1,033,373 (500,000) 1.0% 2019 Q3 1,137 113,441,279 6,684,856 5.9% (813,064) 6 419,948 8 3,584,277 2,058,687 (1,000,000) 0.0% 2019 Q4 1,140 114,555,774 6,177,764 5.4% 1,621,587 3 1,114,495 6 3,045,905 2,644,231 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 Q1 1,144 116,623,999 6,220,096 5.3% 2,025,893 4 2,068,225 2 977,680 1,605,759 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 Q2 1,145 117,025,556 7,292,798 6.2% (671,145) 1 401,557 1 576,123 1,457,221 Great Southwest Industrial Leasing Activity Great Southwest Industrial Construction Absorption vs Previous Qtr vs 12 Months Ago 5,000,000 40,000,000 (671,145) 2,025,893 595,850 4,500,000 Vacancy vs Previous Qtr vs 12 Months Ago 35,000,000 4,000,000 6.2% 5.3% 4.8% 30,000,000 U/C SF vs Previous Qtr vs 12 Months Ago 3,500,000 25,000,000 576,123 977,680 4,004,225 3,000,000 Delivered SF vs Previous Qtr vs 12 Months Ago 20,000,000 2,500,000 401,557 2,068,225 1,200,464 15,000,000 Leasing Activity vs Previous Qtr vs 12 Months Ago 2,000,000 10,000,000 1,457,221 1,605,759 1,033,373 1,500,000 5,000,000 1,000,000 Great Southwest Vital Statistics 0 500,000 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 3,500,000 10.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 3,000,000 9.0% 0 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2,500,000 8.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Delivered Under Construction 2,000,000 7.0% 1,500,000 6.0% 1,000,000 5.0% 500,000 4.0% 0 3.0% (500,000) 2.0% (1,000,000) 1.0% (1,500,000) 0.0% 20172017201720172018201820182018201920192019201920202020 Movers & Shakers Largest Vacancies: Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Oakdale Logistics Center – 401,557 sf Net Absorption Delivered Vacant % Tenant SF Building ACME Furniture Inc 103,662 15124 Grand River Centreport Distribution Centre – 310,000 sf Structural Technologies 72,640 15600 Trinity Blvd 3254 W Trinity Blvd – 305,000 sf Miller Electric Mfg Co 55,000 15000 Grand River Blvd 2911 S GSW Parkway – 271,794 sf Rustic & Western Imports 51,000 2920 N State Highway 360 First Arlington Commerce II – 234,100 sf Pace Runners Inc 46,800 600 109th Street 2400 Centennial Drive – 186,344 sf Amazon 322,824 1102 State Highway 161 Covetrus 120,000 14800 FAA Blvd Rugby Architectural Building Products 99,510 900-1000 West Freeway

Great Southwest

The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 9 Existing Inventory Vacancy Delivered Inventory Under Construction Leasing Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity North Fort Worth Industrial Vacancy North Fort Worth Industrial Net Absorption Construction 2017 Q1 12.0% 668 87,916,601 7,193,250 8.2% 1,805,738 6 1,912,912 15 5,757,345 2,946,635 2,500,000 2017 Q2 670 88,494,810 6,054,226 6.8% 1,717,233 2 578,209 23 5,905,248 2,329,834 10.0% 2017 Q3 674 89,886,426 5,364,997 6.0% 2,080,845 5 1,420,385 21 4,742,613 515,067 2,000,000 Existing Inventory Vacancy Delivered Inventory Under Construction 2017 Q4 677 90,457,200 4,817,565 5.3% 1,117,806 3 570,774 24 Leasing5,839,872 1,743,538 Period Net Absorption Under 8.0% # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity North Fort Worth Industrial Vacancy North Fort Worth Industrial1,500,000 Net Absorption 2018 Q1 680 90,535,900 3,827,339 4.2% 1,068,926 4 110,700 Construction25 6,399,672 2,076,086 2017 Q1 668 87,916,601 7,193,250 8.2% 1,805,738 6 1,912,912 15 5,757,345 2,946,635 12.0% 2018 Q2 686 91,554,476 4,041,423 4.4% 804,492 6 1,018,576 25 8,160,118 674,719 6.0% 2,500,000 1,000,000 2017 Q2 670 88,494,810 6,054,226 6.8% 1,717,233 2 578,209 23 5,905,248 2,329,834 2018 Q3 694 93,677,323 6,254,347 6.7% (90,077) 9 2,163,968 20 6,573,120 895,07810.0% 2017 Q3 674 89,886,426 5,364,997 6.0% 2,080,845 5 1,420,385 21 4,742,613 515,067 2,000,000 2018 Q4 702 96,054,777 7,613,544 7.9% 696,427 6 2,055,624 18 5,845,496 667,821 4.0% 500,000 2017 Q4 677 90,457,200 4,817,565 5.3% 1,117,806 3 570,774 24 5,839,872 1,743,538 NORTH FORT2019 Q1 706 97,847,803WORTH8,013,241 8.2% 1,393,329 4 1,793,026NORTH22 9,300,276 2,197,766 8.0%FORT WORTH 1,500,000 2018 Q1 680 90,535,900 3,827,339 4.2% 1,068,926 4 110,700 25 6,399,672 2,076,086 0 2019 Q2 710 98,330,803 7,619,423 7.7% 865,912 4 483,000 32 12,058,245 774,713 2.0% 2018 Q2 686 91,554,476 4,041,423 4.4% 804,492 6 1,018,576 25 8,160,118 674,719 6.0% 1,000,000 SUBMARKET20182019 Q3 Q3 694712 93,677,32398,380,2986,254,3475,962,3476.7% 6.1% (90,077) 1,706,5719 2,163,9682 2049,495 6,573,12038 895,07813,064,977 1,999,623 (500,000) 0.0% 20182019 Q4 Q4 702722 96,054,777102,054,1807,613,5447,576,9047.9% 7.4%696,427 2,059,3256 2,055,62410 3,673,88218 5,845,49637 667,82113,062,092 804,8184.0% 500,000 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 20192020 Q1 Q1 706735 97,847,803104,822,4678,013,2418,380,6128.2% 8.0%1,393,329 1,964,5794 1,793,02613 2,768,28722 9,300,27634 2,197,76612,329,835 3,006,476 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2.0% 0 20192020 Q2 Q2 710746 98,330,803109,427,1097,619,42311,741,1157.7% 10.7%865,912 1,244,1394 483,00011 4,604,64232 12,058,24525 774,7137,850,240 1,559,757 2019 Q3 712 98,380,298 5,962,347 6.1% 1,706,571 2 49,495 38 13,064,977 1,999,623 (500,000) 0.0% 2019 Q4 722 102,054,180 7,576,904 7.4% 2,059,325 10 3,673,882 37 13,062,092 804,818 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2017 2017 2017 2017 2018 2018North2018 2018 Fort2019 Worth2019 2019 Industrial2019 2020 2020 Leasing ActivityQ1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 NorthQ1 Q2 FortQ3 Q4 WorthQ1 Q2 Industrial Construction North Fort Worth Overview 2020 Q1 735 104,822,467 8,380,612 8.0% 1,964,579 13 2,768,287 34 12,329,835 3,006,476 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 The NE Tarrant/Alliance Submarket is dominated 2020 Q2Absorption746 109,427,109vs Previous11,741,115 Qtr 10.7% vs1,244,139 12 Months Ago11 4,604,642 25 7,850,240 1,559,757 3,500,000 40,000,000 by Hillwood’s 26,000-acre, master-planned 1,244,139 1,964,579 865,912 AllianceTexas development. Alliance has emerged Vacancy North Fort Worth Industrial Leasing Activity North Fort Worth Industrial35,000,000 Construction as one of Dallas-Fort Worth’s primary industrial vs Previous Qtr vs 12 Months Ago 3,000,000 Absorption vs Previous Qtr vs 12 Months Ago 3,500,000 nodes, featuring some of North Texas’s newest, 10.7% 8.0% 7.7% 40,000,000 30,000,000 1,244,139 1,964,579 865,912 most-efficient warehouse product. The submarket U/C SF vs Previous Qtr vs 12 Months Ago 2,500,000 is also home to Fort Worth Alliance Airport, which Vacancy vs Previous Qtr vs 12 Months Ago 3,000,000 35,000,000 25,000,000 7,850,240 12,329,835 12,058,245 is dedicated exclusively to air cargo. The success 10.7% 8.0% 7.7% Delivered SF 2,000,000 30,000,000 of the airport spurred an expansion of its runway, U/C SF vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 Ago Months Ago 2,500,000 20,000,000 25,000,000 which was completed in early 2018. The extension 7,850,2404,604,642 12,329,8352,768,287 12,058,245 483,000 enables long-haul flights to take off fully fueled 1,500,000 15,000,000 LeasingDelivered Activity SF vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 Ago Months Ago 2,000,000 20,000,000 under almost any weather conditions, increasing 4,604,6421,559,757 2,768,2873,006,476 483,000 774,713 10,000,000 air cargo capacity at the airport. Not far from the 1,500,000 15,000,000 Leasing Activity vs Previous Qtr vs 12 Months Ago 1,000,000 airport is another primary demand driver, the 5,000,000 1,559,757 3,006,476 774,713 10,000,000 Alliance Global Logistics Hub (built around the North Fort Worth Vital Statistics 1,000,000 BNSF Alliance Intermodal Facility), which serves as 500,000 5,000,000 0 one of the nation’s premier inland ports. 5,000,000 North Fort Worth Vital Statistics 12.0% 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 500,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 5,000,000 12.0% 0 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 The submarket has been one of the most active in 4,000,000 10.0% 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019Q1 Q22020Q32020Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 0 Delivered Under Construction the metroplex in terms of new supply this cycle. 4,000,000 10.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 3,000,000 8.0% 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 Since 2010, the area has added over 17.7 million SF Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Delivered Under Construction of new space, encompassing 14% of the industrial 3,000,000 8.0% 2,000,000 6.0% construction in the market during this period. With 2,000,000 6.0% 10.5 million SF of development currently underway, 1,000,000 4.0% the area is showing no signs of slowing down 1,000,000 4.0% anytime soon. 0 0 2.0% 2.0%

Meacham Field/Fossil Creek is a large, dynamic (1,000,000)(1,000,000) 0.0% 0.0% industrial submarket north of Fort Worth. A series 2017201720172017201720172017201720182018201820182018201820182019201820192019201920192019202020192020201920202020 of supply spikes in the submarket continue to place Q1Q1Q2 Q2Q3 Q3Q4 Q1Q4 Q2Q1 Q3Q2Q4Q3Q1Q4Q2 Q1Q3 Q2Q4 Q1Q3 Q2Q4 Q1 Q2 pressure on fundamentals. At 8.5% vacancies are Net NetAbsorption Absorption DeliveredDelivered Vacant % Vacant % trending near the rest of the metroplex. Meacham Field/Fossil Creek is one of the more liquid submarkets in the metroplex, as roughly 10% of the submarket’s inventory has changed hands on average annually in recent years.

Leasing NE Tarrant/Alliance serves as a significant super-regional distribution hub in the northwestern part of Dallas-Fort Worth. While other developers are active in the submarket, it is dominated by Hillwood, which owns and continues to develop a substantial portion of the land here. Over the years, Hillwood has transformed this former prairie into a bustling mixed-use development, including residential, retail, office, and industrial components. Despite substantial supply entering the market, robust demand from major tenants has kept vacancy levels in check.

Meacham Field/Fossil Creek is located between in-town Fort Worth and Alliance, a geographic advantage that has enabled vacancy rates to trend below the metro norm for three years. Recent deliveries have put upward pressure on vacancies in early 2020. The area has1.2 million SF under construction.

Amazon moved into 465,000 SF of space in early 2020. Walmart also took 213,000 square feet of space as well. Overall, the submarket has been experiencing substantial rental rate increases after a wave of speculative supply that came to the area in 2016 and 2017. Over the last twelve months the area has experienced 3.9% of rental growth.

North Fort Worth

Existing Inventory Vacancy Delivered Inventory Under Construction Leasing Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity North Fort Worth Industrial Vacancy North Fort Worth Industrial Net Absorption Construction 2017 Q1 12.0% 668 87,916,601 7,193,250 8.2% 1,805,738 6 1,912,912 15 5,757,345 2,946,635 2,500,000 2017 Q2 670 88,494,810 6,054,226 6.8% 1,717,233 2 578,209 23 5,905,248 2,329,834 10.0% 2017 Q3 674 89,886,426 5,364,997 6.0% 2,080,845 5 1,420,385 21 4,742,613 515,067 2,000,000 2017 Q4 677 90,457,200 4,817,565 5.3% 1,117,806 3 570,774 24 5,839,872 1,743,538 8.0% 1,500,000 2018 Q1 680 90,535,900 3,827,339 4.2% 1,068,926 4 110,700 25 6,399,672 2,076,086 2018 Q2 686 91,554,476 4,041,423 4.4% 804,492 6 1,018,576 25 8,160,118 674,719 6.0% 1,000,000 2018 Q3 694 93,677,323 6,254,347 6.7% (90,077) 9 2,163,968 20 6,573,120 895,078 2018 Q4 702 96,054,777 7,613,544 7.9% 696,427 6 2,055,624 18 5,845,496 667,821 4.0% 500,000 2019 Q1 706 97,847,803 8,013,241 8.2% 1,393,329 4 1,793,026 22 9,300,276 2,197,766 0 2019 Q2 710 98,330,803 7,619,423 7.7% 865,912 4 483,000 32 12,058,245 774,713 2.0% 2019 Q3 712 98,380,298 5,962,347 6.1% 1,706,571 2 49,495 38 13,064,977 1,999,623 (500,000) 0.0% 2019 Q4 722 102,054,180 7,576,904 7.4% 2,059,325 10 3,673,882 37 13,062,092 804,818 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 Q1 735 104,822,467 8,380,612 8.0% 1,964,579 13 2,768,287 34 12,329,835 3,006,476 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 Q2 746 109,427,109 11,741,115 10.7% 1,244,139 11 4,604,642 25 7,850,240 1,559,757 North Fort Worth Industrial Leasing Activity North Fort Worth Industrial Construction Absorption vs Previous Qtr vs 12 Months Ago 3,500,000 40,000,000 1,244,139 1,964,579 865,912 Vacancy vs Previous Qtr vs 12 Months Ago 3,000,000 35,000,000 10.7% 8.0% 7.7% 30,000,000 U/C SF vs Previous Qtr vs 12 Months Ago 2,500,000 25,000,000 7,850,240 12,329,835 12,058,245 Delivered SF vs Previous Qtr vs 12 Months Ago 2,000,000 20,000,000 4,604,642 2,768,287 483,000 1,500,000 15,000,000 Leasing Activity vs Previous Qtr vs 12 Months Ago 1,559,757 3,006,476 774,713 10,000,000 1,000,000 5,000,000 North Fort Worth Vital Statistics 500,000 0 5,000,000 12.0% 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 0 4,000,000 10.0% 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Delivered Under Construction 3,000,000 8.0%

2,000,000 6.0%

1,000,000 4.0%

0 2.0%

(1,000,000) 0.0% 20172017201720172018201820182018201920192019201920202020 Movers & Shakers Largest Vacancies: Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Tenant SF Building Westport 11 – 2,000,000 sf Net Absorption Delivered Vacant % National Distribution Centers 472,500 4798-4800 Henrietta Creek 15245 Heritage Parkway – 1,089,642 sf Amazon 465,450 1511 NE Loop 820 1511 NE Loop 820 – 1,023,488 sf General Mills Inc 856,278 4901 Henrietta Creek Rd 2 Haslet County Rd – 1,007,000 sf AmerCareRoyal 390,000 2401 Petty Place Sunset Trade Center 2 – 677,429 sf Wesco Aircraft Holdings 299,810 400 E Industrial Ave Mark IV Commerce Park 1 – 581,000 sf

North Fort Worth

The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 11 Existing Inventory Vacancy Delivered Inventory Under Construction Leasing Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity Northeast Dallas Industrial Vacancy Northeast Dalllas Industrial Net Absorption Construction 9.0% 2016 Q4 1,482 105,401,495 6,432,407 6.1% 341,674 3 478,146 22 2,487,427 1,755,329 1,400,000 2017 Q1 1,491 106,639,030 7,162,134 6.7% 507,808 9 1,237,535 19 1,701,218 1,489,193 8.0% 1,200,000 Existing Inventory107,081,360 Vacancy Delivered Inventory Under Construction 2017 Q2 1,497 7,226,293 6.7% 378,171 6 442,330 13 Leasing1,258,888 2,000,084 7.0% 1,000,000 Period Net Absorption Under Northeast Dalllas Industrial Net Absorption 2017 Q3 # Bldgs1,498 Total107,351,376 RBA Vacant7,403,341 SF Vacant % 6.9% 92,968# Bldg Delivered1 # 270,016Bldgs 16 Activity1,777,859 1,497,244 Northeast Dallas Industrial Vacancy 800,000 Construction 6.0% 2017 Q4 1,504 105,401,495108,064,922 7,142,100 6.6% 974,787 6 713,546 17 2,132,139 2,251,1229.0% 600,000 2016 Q4 1,482 6,432,407 6.1% 341,674 3 478,146 22 2,487,427 1,755,329 5.0% 1,400,000 2018 Q1 1,510 108,314,509 6,545,628 6.0% 846,059 6 249,587 12 1,957,552 1,511,913 2017 Q1 1,491 106,639,030 7,162,134 6.7% 507,808 9 1,237,535 19 1,701,218 1,489,193 8.0% 1,200,000 400,000 108,364,835 4.0% NORTHEAST20182017 Q2Q2 1,4971,511 107,081,360DALLAS7,226,2936,612,6586.7% 6.1% 378,171 (16,704)6 442,3301 50,32613 1,258,88814 2,000,0842,593,042 2,581,6627.0% 1,000,000 200,000 2017 Q3 1,498 107,351,376 7,403,341 6.9% 92,968 1 270,016 16 1,777,859 1,497,244 2018 Q3 1,517 109,389,143 6,347,881 5.8% 1,289,085 6 1,024,308 15 2,467,860 2,036,9016.0% 3.0% 800,000 0 2017 Q4 1,504 108,064,922110,290,4617,142,100 6.6% 974,787 6 713,546 17 2,132,139 2,251,122 600,000 2018 Q4 1,523 6,528,882 5.9% 720,317 6 901,318 20 2,484,771 1,092,4105.0% 2.0% (200,000) 2018 Q1 1,510 108,314,509 6,545,628 6.0% 846,059 6 249,587 12 1,957,552 1,511,913 SUBMARKET2019 Q1 1,531 111,222,782 7,355,004 6.6% 159,044 8 932,321 19 2,244,460 1,506,575 400,000 (400,000) 2018 Q2 1,511 108,364,835 6,612,658 6.1% (16,704) 1 50,326 14 2,593,042 2,581,662 4.0% 1.0% 2019 Q2 1,536 112,011,608 7,358,567 6.6% 754,213 4 757,776 18 2,008,975 1,313,035 200,000 (600,000) 2018 Q3 1,517 109,389,143 6,347,881 5.8% 1,289,085 6 1,024,308 15 2,467,860 2,036,901 3.0% 0.0% 0 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2019 Q3 1,540 112,282,529 8,066,029 7.2% (436,541) 4 270,921 16 2,093,125 2,402,662 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2018 Q4 1,523 110,290,461 6,528,882 5.9% 720,317 6 901,318 20 2,484,771 1,092,410 2.0% (200,000) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 Q4 1,543 112,563,029 8,613,846 7.7% (267,317) 3 280,500 15 1,989,479 2,489,561 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 Q1 1,531 111,222,782 7,355,004 6.6% 159,044 8 932,321 19 2,244,460 1,506,575 1.0% (400,000) 20202019 Q2Q1 1,5361,544 112,011,608112,800,0297,358,5678,449,0856.6% 7.5% 754,213 401,761 4 757,7761 237,00018 2,008,97517 1,313,0352,232,463 1,027,244 (600,000) 0.0% 2019 Q3 1,540 112,282,529 8,066,029 7.2% (436,541) 4 270,921 16 2,093,125 2,402,662 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 Northeast Dallas Overview 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 Q4 112,563,029 Q4 Q1 Q2 Q3 Q4 Q1NortheastQ2 Q3 Q4 DalllasQ1 Q2 IndustrialQ3 Q4 Q1 Leasing Activity Northeast Dalllas Industrial Construction As one of Dallas’ major industrial nodes, NE 1,543 8,613,846 7.7% (267,317) 3 280,500 15 1,989,479 2,489,561 2020 Q1Absorption1,544 112,800,029vs Previous8,449,085 Qtr 7.5% vs 401,76112 Months Ago 1 237,000 17 2,232,463 1,027,244 3,000,000 Dallas/Garland contains a wide variety of 40,000,000 inventory. The submarket comprises a mix of ‘80s- 401,761 -267,317 159,044 Northeast Dalllas Industrial Leasing Activity Northeast Dalllas Industrial Construction and ‘90s-built multi-tenant product, in addition to Vacancy vs Previous Qtr vs 12 Months Ago 35,000,000 Absorption vs Previous Qtr vs 12 Months Ago 3,000,000 2,500,000 newer, single-tenant buildings with clear heights 7.5% 7.7% 6.6% 40,000,000 401,761 -267,317 159,044 30,000,000 and dock configurations suitable for modern VacancyU/C SF vs Previous Qtr vs 12 Months Ago 35,000,000 vs Previous Qtr vs 12 Months Ago 2,500,000 2,000,000 25,000,000 distribution. 2,232,463 1,989,479 2,244,460 7.5% 7.7% 6.6% 30,000,000 DeliveredU/C SF SF vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 Ago Months Ago 20,000,000 Fundamentals in NE Dallas/Garland are on 2,000,000 1,500,000 25,000,000 2,232,463237,000 1,989,479280,500 2,244,460 932,321 firm footing, with a vacancy rate of 5.5% and 15,000,000 LeasingDelivered Activity SF vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 Ago Months Ago 20,000,000 1,500,000 trending below the submarket’s average over the 237,000 280,500 932,321 1,027,244 2,489,561 1,506,575 1,000,000 15,000,000 10,000,000 last decade. Despite near-record supply levels Leasing Activity vs Previous Qtr vs 12 Months Ago 5,000,000 over the past few years, vacancies have hardly 1,027,244 2,489,561 1,506,575 1,000,000 10,000,000 Northeast Dallas Vital Statistics 500,000 budged. Furthermore, leasing on new and under- 5,000,000 0 construction inventory has been strong, which 1,400,000 Northeast Dallas Vital Statistics 9.0% 500,000 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 should keep vacancies in check in the near term. 1,200,0001,400,000 9.0% 8.0% 0 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019Q4 Q12019Q22020Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1,000,0001,200,000 8.0% 7.0% 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Delivered Under Construction 1,000,000800,000 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 Richardson, home to the Telecom Corridor, serves 7.0% 6.0% Delivered Under Construction 600,000800,000 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 as a primary suburban office submarket in Dallas. 6.0% 5.0% 600,000 While the submarket is not much of a warehouse/ 400,000 5.0% 400,000 4.0% distribution node, it does contain an abundance of 200,000 4.0% 200,0000 3.0% specialized industrial and flex space. Most of the 0 3.0% (200,000) 2.0% (200,000) 2.0% submarket’s industrial inventory is centered near (400,000) 1.0% Arapaho Road and the North Central Expressway. (400,000) 1.0% (600,000)(600,000) 0.0% 0.0% 20162016201720172017201720172017201720172018 2018 2018201820182018201920182019201920192019201920192020 2019 2020 Plano is not often thought of as an industrial Q4Q4 Q1Q1Q2Q2Q3 Q3Q4 Q4Q1 Q2Q1 Q3Q2 Q4Q3Q1Q4Q2 Q1Q3 Q2Q4 Q3Q1 Q4 Q1 hub, as most of the growth in the area is NetNet Absorption Absorption DeliveredDelivered Vacant % Vacant % concentrated in the office, retail, and residential sectors. However, this submarket does contain significant industrial inventory, most of which is in the northeast corner of the North Central Expressway and President George Bush Turnpike. Plano’s location in the heart of the affluent northern Dallas suburbs also makes it ideal for tenants seeking space for last-mile distribution. Leasing activity in Plano remains strong, with vacancies hovering around the metro average for the past few years. Due to rising land costs, rents are some of the highest in the metro, and rent growth has performed well this cycle. Plano industrial has been heavily traded this cycle, with inventory turnover routinely eclipsing 10% annually.

Leasing The tenant base in NE Dallas/Garland is made up of a mix of consumer packaged goods firms, manufacturers, and 3PLs. Virtually the entire big box inventory in NE Dallas/Garland is located just north of the LBJ Freeway (I-635) and west of Shiloh Road. This location gives tenants access to Kansas City Southern’s Zacha Junction, which reopened in 2016 after a temporary closure (KCS opened a new intermodal facility in Wylie in the interim). The intermodal offers nearly 10,000 feet of track space within the terminal and 80 acres of outside storage.

Leasing dynamics in Richardson have strengthened in recent years. The submarket underperformed the metro benchmark for years, but aside from a recent supply-driven spike, vacancies have roughly matched the metro average since early 2016. Large- scale speculative construction in Richardson is non-existent, but there are a handful of smaller spec deals that opened in early 2019, causing vacancies to rise. Four facilities, ranging from 88,000 to 136,000 SF, were delivered completely vacant at Jackson- Shaw’s Parc NorthEast. As of early 2020, the project was about 70% vacant; we anticipate that to decrease as several recently signed tenants begin to fill in their space. Mygrant Glass, a family-owned auto glass wholesaler, leased 93,079 SF of space, taking up the entirety of Building 4.

Northeast Dallas

Northeast Dallas NORTHEAST DALLAS SUBMARKET

Existing Inventory Vacancy Delivered Inventory Under Construction Leasing Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity Northeast Dallas Industrial Vacancy Northeast Dalllas Industrial Net Absorption Construction 9.0% 2016 Q4 1,482 105,401,495 6,432,407 6.1% 341,674 3 478,146 22 2,487,427 1,755,329 1,400,000 2017 Q1 1,491 106,639,030 7,162,134 6.7% 507,808 9 1,237,535 19 1,701,218 1,489,193 8.0% 1,200,000 2017 Q2 1,497 107,081,360 7,226,293 6.7% 378,171 6 442,330 13 1,258,888 2,000,084 7.0% 1,000,000 2017 Q3 1,498 107,351,376 7,403,341 6.9% 92,968 1 270,016 16 1,777,859 1,497,244 6.0% 800,000 2017 Q4 1,504 108,064,922 7,142,100 6.6% 974,787 6 713,546 17 2,132,139 2,251,122 600,000 5.0% 2018 Q1 1,510 108,314,509 6,545,628 6.0% 846,059 6 249,587 12 1,957,552 1,511,913 400,000 4.0% 2018 Q2 1,511 108,364,835 6,612,658 6.1% (16,704) 1 50,326 14 2,593,042 2,581,662 200,000 2018 Q3 1,517 109,389,143 6,347,881 5.8% 1,289,085 6 1,024,308 15 2,467,860 2,036,901 3.0% 0 2018 Q4 1,523 110,290,461 6,528,882 5.9% 720,317 6 901,318 20 2,484,771 1,092,410 2.0% (200,000) 2019 Q1 1,531 111,222,782 7,355,004 6.6% 159,044 8 932,321 19 2,244,460 1,506,575 1.0% (400,000) 2019 Q2 1,536 112,011,608 7,358,567 6.6% 754,213 4 757,776 18 2,008,975 1,313,035 (600,000) 0.0% 2019 Q3 1,540 112,282,529 8,066,029 7.2% (436,541) 4 270,921 16 2,093,125 2,402,662 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 Q4 1,543 112,563,029 8,613,846 7.7% (267,317) 3 280,500 15 1,989,479 2,489,561 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 Q1 1,544 112,800,029 8,449,085 7.5% 401,761 1 237,000 17 2,232,463 1,027,244 Northeast Dalllas Industrial Leasing Activity Northeast Dalllas Industrial Construction Absorption vs Previous Qtr vs 12 Months Ago 3,000,000 40,000,000 401,761 -267,317 159,044 35,000,000 Vacancy vs Previous Qtr vs 12 Months Ago 2,500,000 7.5% 7.7% 6.6% 30,000,000 U/C SF vs Previous Qtr vs 12 Months Ago 2,000,000 25,000,000 2,232,463 1,989,479 2,244,460 Delivered SF vs Previous Qtr vs 12 Months Ago 20,000,000 1,500,000 237,000 280,500 932,321 15,000,000 Leasing Activity vs Previous Qtr vs 12 Months Ago 1,027,244 2,489,561 1,506,575 1,000,000 10,000,000 5,000,000 Northeast Dallas Vital Statistics 500,000 0 1,400,000 9.0% 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1,200,000 8.0% 0 1,000,000 7.0% 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Delivered Under Construction 800,000 6.0% 600,000 5.0% 400,000 4.0% 200,000 0 3.0% (200,000) 2.0% (400,000) 1.0% Due to strong demand and a lack of speculative supply, vacancies have compressed and now sit close to the metro average. In (600,000) 0.0% the long run, the Plano Submarket stands to benefit from the continuing emergence of e-commerce and, more specifically, last- 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 mile distribution operations because due to its close proximity to some of the most affluent and fastest-growing suburbs in the Net Absorption Delivered Vacant % metroplex.

Movers & Shakers Largest Vacancies: Tenant SF Building 3800 Leon Rd – 412,215 sf Amazon 201,477 S Airport Drive 3000 W Kingsley Rd – 341,840 sf Synnex 117,206 1601 S Shiloh Rd 2722 S Jupiter Rd – 300,000 sf Aston Global Inc 62,600 902 Nicholason Rd Garland Logistics Center – 183,124 sf Genmega 50,452 11011 Regency Crest Dr The Rock at Frisco Park 25 – 187,108 sf Vitro Chemicals 125,000 2182 Airport Road Star Commerce Center II – 141,000 sf Southwest Nutrition Packaging 94,145 1100 Professional Drive

Northeast Dallas Existing Inventory Vacancy Delivered Inventory Under Construction Leasing Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity South Dallas Industrial Vacancy South Dallas Industrial Net Absorption Construction 16.0% 2017 Q1 666 86,724,579 8,807,249 10.2% 1,010,318 5 2,730,819 12 5,621,060 390,231 3,500,000 2017 Q2 668 88,019,721 9,636,237 10.9% 466,154 2 1,295,142 13 6,900,395 3,001,525 14.0% 3,000,000 2017 Q3 674 90,162,393 10,668,362 11.8% 1,110,547 6 2,142,672 15 8,752,516 3,852,598 Existing Inventory Vacancy Delivered Inventory Under Construction 12.0% 2017 Q4 676 91,267,259 9,506,902 10.4% 2,266,326 2 1,104,866 16 Leasing9,021,894 647,448 2,500,000 Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity South10.0% Dallas Industrial Vacancy South Dallas Industrial Net Absorption 2018 Q1 678 92,351,639 10,676,824 11.6% (85,542) 3 1,114,380 Construction14 8,157,514 2,233,289 2,000,000 16.0% 20182017 Q2Q1 666683 86,724,57995,810,8508,807,24912,990,86810.2% 13.6%1,010,3181,145,1675 2,730,8195 3,459,21112 5,621,06011 390,2315,811,631 220,647 8.0% 3,500,000 1,500,000 2017 Q2 668 88,019,721 9,636,237 10.9% 466,154 2 1,295,142 13 6,900,395 3,001,525 14.0% 2018 Q3 687 98,962,812 14,041,189 14.2% 2,101,641 5 3,195,425 8 4,025,055 2,904,188 3,000,000 2017 Q3 674 90,162,393 10,668,362 11.8% 1,110,547 6 2,142,672 15 8,752,516 3,852,598 6.0% 1,000,000 2018 Q4 689 99,462,490 13,192,271 13.3% 1,348,596 2 499,678 7 3,595,377 1,003,19112.0% 2,500,000 2017 Q4 676 91,267,259 9,506,902 10.4% 2,266,326 2 1,104,866 16 9,021,894 647,448 500,000 SOUTH2019 Q1 DALLAS689 99,462,490 13,086,117 13.2% 106,154 0 0 11 SOUTH4,450,513 2,307,873 DALLAS4.0% 2018 Q1 678 92,351,639 10,676,824 11.6% (85,542) 3 1,114,380 14 8,157,514 2,233,289 10.0% 2,000,000 2019 Q2 691 100,619,865 13,055,521 13.0% 1,187,971 2 1,157,375 13 4,010,138 2,476,705 0 2018 Q2 683 95,810,850 12,990,868 13.6% 1,145,167 5 3,459,211 11 5,811,631 220,647 8.0% 2.0% 1,500,000 SUBMARKET20192018 Q3 687693 98,962,812100,939,86514,041,18910,827,80414.2% 10.7%2,101,6412,547,7175 3,195,4252 320,0008 4,025,05511 2,904,1883,690,138 1,288,757 (500,000) 6.0% 0.0% 1,000,000 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 20192018 Q4 689697 99,462,490102,599,91513,192,2719,998,20213.3% 9.7% 1,348,5962,489,6522 499,6784 1,660,0507 3,595,37712 1,003,1913,219,631 1,779,361 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 500,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 20202019 Q1 689702 99,462,490104,296,00313,086,1178,280,72913.2% 7.9% 106,154 3,413,5610 50 1,696,08811 4,450,5139 2,307,8732,435,240 1,980,7944.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 0 20202019 Q2 691702 100,619,865104,296,00313,055,5218,531,17413.0% 8.2% 1,187,971 (250,445)2 1,157,3750 130 4,010,1389 2,476,7052,435,240 3,585,9512.0% 2019 Q3 693 100,939,865 10,827,804 10.7% 2,547,717 2 320,000 11 3,690,138 1,288,757 (500,000) 0.0% 2019 Q4 697 102,599,915 9,998,202 9.7% 2,489,652 4 1,660,050 12 3,219,631 1,779,361 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 South Dallas Overview 2017 2017 2017 2017 2018 2018 South2018 2018 Dallas2019 2019 2019Industrial2019 2020 2020Leasing ActivityQ1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1SouthQ2 Q3 DallasQ4 Q1 IndustrialQ2 Construction 2020 Q1 702 104,296,003 8,280,729 7.9% 3,413,561 5 1,696,088 9 2,435,240 1,980,794 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Several interstates bisect the submarket: I-20 2020 AbsorptionQ2 702 104,296,003vs Previous8,531,174 Qtr 8.2% vs 12(250,445) Months Ago 0 0 9 2,435,240 3,585,951 4,500,000 runs east-west, and I-35E, I-45, and Texas 40,000,000 (250,445) 3,413,561 1,187,971 State Highway 175 all connect the Dallas South Dallas4,000,000 Industrial Leasing Activity South Dallas Industrial Construction CBD to southern portions of the metroplex. Vacancy vs Previous Qtr vs 12 Months Ago 35,000,000 Absorption vs Previous Qtr vs 12 Months Ago 4,500,000 These highways provide access to both 8.2% 7.9% 13.0% 3,500,000 40,000,000 30,000,000 (250,445) 3,413,561 1,187,971 coasts, Mexico and the Port of Houston. U/C SF vs Previous Qtr vs 12 Months Ago 4,000,000 Vacancy vs Previous Qtr vs 12 Months Ago 3,000,000 35,000,000 25,000,000 Highlighting this submarket’s importance 2,435,240 2,435,240 4,010,138 8.2% 7.9% 13.0% 3,500,000 30,000,000 as a super-regional distribution hub, a large Delivered SF vs Previous Qtr vs 12 Months Ago 2,500,000 20,000,000 portion of the most recent development has U/C SF vs Previous Qtr vs 12 Months Ago 0 1,696,088 1,157,375 3,000,000 25,000,000 clustered around the Union Pacific Intermodal 2,435,240 2,435,240 4,010,138 2,000,000 15,000,000 LeasingDelivered Activity SF in Wilmer. vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 AgoMonths Ago 2,500,000 20,000,000 0 1,696,088 1,157,375 1,500,000 10,000,000 3,585,951 1,980,794 2,476,705 2,000,000 15,000,000 Leasing Activity vs Previous Qtr vs 12 Months Ago The SE Dallas/I-45 Submarket has received 5,000,000 1,500,000 1,000,000 10,000,000 an incredible amount of supply over the past 3,585,951 South1,980,794 Dallas Vital Statistics2,476,705 few years, more than doubling its inventory 1,000,000 500,000 5,000,000 0 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 since 2013, reaching 45.2 million SF. As a 4,000,000 South Dallas Vital Statistics 16.0% 500,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 result, vacancies spiked in 2018. Vacancy rates 3,500,0004,000,000 16.0% 14.0% 0 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 3,000,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 continue to trend above the market norm, but 3,500,000 14.0% 12.0% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Delivered Under Construction 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2,500,0003,000,000 Delivered Under Construction are working to normalize as the immediate 12.0% 10.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2,500,000 threat from supply has subsided. A large 2,000,000 10.0% 2,000,000 8.0% portion of construction and recently delivered 1,500,000 8.0% projects have been speculative, which raises 1,500,000 6.0% 1,000,000 6.0% the threat of keeping vacancy rates elevated. 1,000,000 4.0% 500,000500,000 4.0% 0 2.0% The SW Dallas/US 67 Submarket, like other 0 2.0% South Dallas submarkets, has demonstrated (500,000)(500,000) 0.0% 0.0% 2017201720172017201720172017201720182018201820182018 20182018201920182019201920192019201920192020201920202020 2020 impressive growth in the past few years, as Q1Q1 Q2Q2Q3Q3Q4 Q4Q1 Q1Q2 Q2Q3 Q4Q3 Q1Q4 Q2Q1Q3Q2Q4 Q3Q1 Q4Q2 Q1 Q2 the area has emerged as a super-regional NetNet Absorption Absorption DeliveredDelivered Vacant % Vacant % distribution hub. This submarket has two primary industrial nodes: One is along I-20, between US Route 67 and I-35E, and the other is along I-35E in Waxahachie. The lion’s share of large-scale construction over the last decade has taken place near I-20, and most of the projects in the pipeline are located in this corridor as well.

Leasing The SE Dallas/I-45 submarket has received an incredible amount of supply this decade, with inventory more than doubling since 2013. In turn, there’s been a healthy response for new space. The submarket has seen more than 19 million SF of net absorption in that period. Vacancy rates have stabilized at 11.9% after rising to 20% after a wave of new buildings completed in 2018. Despite the high vacancies, development is likely to remain robust here and in other South Dallas submarkets, like SW Dallas/US 67. The Southlink Logistics Center received a bit of a shake-up in mid-2020, Amazon announced it was taking the distribution center that was planned for California-based food industry service firm Zume. The more than $41 million project is set to start in July. Stantec is designing the new warehouse space.

SW Dallas/US 67 offers all of the advantages of a South Dallas submarket: great highway access east/west via I-20, as well as north/south from I-35E; an abundance of inexpensive, flat, buildable land; and a robust tenant base including many national retailers and distributors. Most of the available space is clustered in the northeast corner of the submarket. Vacancies in this cluster are well above the submarket average.

South Dallas

Existing Inventory Vacancy Delivered Inventory Under Construction Leasing Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity South Dallas Industrial Vacancy South Dallas Industrial Net Absorption Construction 16.0% 2017 Q1 666 86,724,579 8,807,249 10.2% 1,010,318 5 2,730,819 12 5,621,060 390,231 3,500,000 2017 Q2 668 88,019,721 9,636,237 10.9% 466,154 2 1,295,142 13 6,900,395 3,001,525 14.0% 3,000,000 2017 Q3 674 90,162,393 10,668,362 11.8% 1,110,547 6 2,142,672 15 8,752,516 3,852,598 12.0% 2017 Q4 676 91,267,259 9,506,902 10.4% 2,266,326 2 1,104,866 16 9,021,894 647,448 2,500,000 2018 Q1 678 92,351,639 10,676,824 11.6% (85,542) 3 1,114,380 14 8,157,514 2,233,289 10.0% 2,000,000 2018 Q2 683 95,810,850 12,990,868 13.6% 1,145,167 5 3,459,211 11 5,811,631 220,647 8.0% 1,500,000 2018 Q3 687 98,962,812 14,041,189 14.2% 2,101,641 5 3,195,425 8 4,025,055 2,904,188 6.0% 1,000,000 2018 Q4 689 99,462,490 13,192,271 13.3% 1,348,596 2 499,678 7 3,595,377 1,003,191 500,000 2019 Q1 689 99,462,490 13,086,117 13.2% 106,154 0 0 11 4,450,513 2,307,873 4.0% 2019 Q2 691 100,619,865 13,055,521 13.0% 1,187,971 2 1,157,375 13 4,010,138 2,476,705 2.0% 0 2019 Q3 693 100,939,865 10,827,804 10.7% 2,547,717 2 320,000 11 3,690,138 1,288,757 (500,000) 0.0% 2019 Q4 697 102,599,915 9,998,202 9.7% 2,489,652 4 1,660,050 12 3,219,631 1,779,361 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 Q1 702 104,296,003 8,280,729 7.9% 3,413,561 5 1,696,088 9 2,435,240 1,980,794 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 Q2 702 104,296,003 8,531,174 8.2% (250,445) 0 0 9 2,435,240 3,585,951 South Dallas Industrial Leasing Activity South Dallas Industrial Construction Absorption vs Previous Qtr vs 12 Months Ago 4,500,000 40,000,000 (250,445) 3,413,561 1,187,971 4,000,000 Vacancy vs Previous Qtr vs 12 Months Ago 35,000,000 8.2% 7.9% 13.0% 3,500,000 30,000,000 U/C SF vs Previous Qtr vs 12 Months Ago 3,000,000 25,000,000 2,435,240 2,435,240 4,010,138 Delivered SF vs Previous Qtr vs 12 Months Ago 2,500,000 20,000,000 0 1,696,088 1,157,375 2,000,000 15,000,000 Leasing Activity vs Previous Qtr vs 12 Months Ago 3,585,951 1,980,794 2,476,705 1,500,000 10,000,000

1,000,000 5,000,000 South Dallas Vital Statistics 500,000 0 4,000,000 16.0% 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 3,500,000 14.0% 0 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 3,000,000 12.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Delivered Under Construction 2,500,000 10.0% 2,000,000 8.0% 1,500,000 6.0% 1,000,000 500,000 4.0% 0 2.0% Movers & Shakers Largest Vacancies: (500,000) 0.0% Tenant SF Building I-20 Commerce Center – 900,043 SF 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Eatery Essentials 399,971 2425 W Danieldale Rd Cedardale Rd – 776,630 SF Net Absorption Delivered Vacant % Geodis 336,000 101 Sunridge Blvd Southpointe 20/35 – Blgd 2 – 660,312 SF Geodis 280,000 5450 W Kiest Blvd 9890 Bonnie View Rd – 626,439 sf Sunrider International 1,100,000 2499 Miller Road 2801 N Houston School Road – 610,806 sf FedEx 776.630 3800 Cedardale Road Crossroads Trade Center Bldg 3 – 458,588 sf NFI Industries, Inc 653,582 1901 Danieldale Rd Crossroads Trade Center Bldg 1 – 350,150 sf Mars Petcare 610,806 2801 N Houston School Road Eaton Corporation 358,238 9890 Bonnie View Rd

South Dallas

The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 15 Existing Inventory Vacancy Delivered Inventory Under Construction Leasing Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity South Stemmons Industrial Vacancy South Stemmons Industrial Net Absorption Construction 114,728,874 8.0% 2017 Q1 2,096 8,061,210 7.0% (76,886) 1 518,241 1 215,000 1,000,767 3,000,000 2017 Q2 2,096 114,395,874 7,096,106 6.2% 603,708 1 215,000 4 713,933 1,250,471 7.0% 2,500,000 2017 Q3 2,095 114,367,478 7,695,745 6.7% (628,035) 0 0 5 1,093,933 1,404,375 Existing Inventory Vacancy Delivered Inventory Under Construction 6.0% 2017 Q4 2,096 114,382,478 8,403,575 7.3% (692,830) 1 15,000 4 Leasing1,078,933 1,157,386 2,000,000 Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity South Stemmons Industrial Vacancy South Stemmons Industrial Net Absorption 2018 Q1 2,086 109,631,330 3,874,458 3.5% (222,031) 2 376,718 Construction2 702,215 1,161,794 5.0% 1,500,000 2017 Q1 2,096 114,728,874 8,061,210 7.0% (76,886) 1 518,241 1 215,000 1,000,767 8.0% 2018 Q2 2,087 110,317,662 5,007,547 4.5% (446,757) 2 702,215 1 193,000 1,828,502 4.0% 3,000,000 1,000,000 2017 Q2 2,096 114,395,874 7,096,106 6.2% 603,708 1 215,000 4 713,933 1,250,471 7.0% 2018 Q3 2,086 110,230,587 5,409,292 4.9% (488,820) 0 0 3 1,474,714 2,116,541 2,500,000 2017 Q3 2,095 114,367,478 7,695,745 6.7% (628,035) 0 0 5 1,093,933 1,404,375 3.0% 500,000 2018 Q4 2,085 110,201,276 5,299,990 4.8% 191,991 0 0 5 4,574,714 2,009,0516.0% 2017 Q4 2,096 114,382,478 8,403,575 7.3% (692,830) 1 15,000 4 1,078,933 1,157,386 2,000,000 2.0% 0 STEMMONS2019 Q1 2,082 FREEWAY110,116,366 5,829,257 5.3% (614,177) 0 NORTHWEST0 6 4,871,394 1,422,5515.0% DALLAS 2018 Q1 2,086 109,631,330 3,874,458 3.5% (222,031) 2 376,718 2 702,215 1,161,794 1,500,000 2019 Q2 2,077 109,914,217 5,150,947 4.7% 476,161 0 0 8 5,260,216 1,660,510 (500,000) 2018 Q2 2,087 110,317,662 5,007,547 4.5% (446,757) 2 702,215 1 193,000 1,828,502 4.0% 1.0% 1,000,000 SUBMARKET20192018 Q3 Q3 2,0862,078 110,230,587110,107,2175,409,2925,492,6674.9% 5.0% (488,820) (148,720)0 01 193,0003 1,474,7148 2,116,5415,211,776 2,377,770 (1,000,000) 3.0% 0.0% 500,000 20192018 Q4 Q4 2,0852,082 110,201,276112,485,6115,299,9905,897,2664.8% 5.2% 191,991 1,973,7950 04 2,378,3945 4,574,7144 2,009,0512,833,382 3,334,915 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 02019 2020 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 20202019 Q1 Q1 2,0822,081 110,116,366112,462,6015,829,2575,809,5455.3% 5.2% (614,177) 64,711 0 0 6 0 4,871,3946 1,422,5513,617,072 695,5112.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 (500,000) 20202019 Q2 Q2 2,0772,084 109,914,217115,106,2315,150,9475,634,8954.7% 4.9% 476,161 2,818,2800 03 2,643,6308 5,260,2163 1,660,510973,442 1,643,7891.0% 2019 Q3 2,078 110,107,217 5,492,667 5.0% (148,720) 1 193,000 8 5,211,776 2,377,770 (1,000,000) 0.0% 2019 Q4 2,082 112,485,611 5,897,266 5.2% 1,973,795 4 2,378,394 4 2,833,382 3,334,915 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2017 2017 2017 2017 2018 2018South2018 2018 Stemmons2019 2019 2019 2019Industrial2020 2020 Leasing ActivityQ1 Q2 Q3 Q4 Q1 Q2 Q3 Q4SouthQ1 Q2 StemmonsQ3 Q4 Q1 Q2 Industrial Construction Stemmons Freeway Overview 2020 Q1 2,081 112,462,601 5,809,545 5.2% 64,711 0 0 6 3,617,072 695,511 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Vacancies in West Brookhollow are tight due to a 2020 Q2Absorption2,084 115,106,231vs Previous5,634,895 Qtr 4.9% vs2,818,280 12 Months Ago 3 2,643,630 3 973,442 1,643,789 4,000,000 40,000,000 complete lack of new supply coupled with steady 2,818,280 64,711 476,161 3,500,000 South Stemmons Industrial Construction demand this cycle. The supply outlook is bare Vacancy vs Previous Qtr vs 12 Months Ago South Stemmons Industrial Leasing Activity 35,000,000 as the submarket is largely built-out, and there Absorption4.9% vs Previous5.2% Qtr vs 12 Months Ago4.7% 4,000,000 3,000,000 40,000,000 30,000,000 are still plenty of developable sites in nearby 2,818,280U/C SF 64,711 476,161 vs Previous Qtr vs 12 Months Ago 3,500,000 submarkets, making it unnecessary to redevelop Vacancy vs Previous Qtr vs 12 Months Ago 35,000,000 25,000,000 973,442 3,617,072 5,260,216 2,500,000 existing assets here. Due to ultra-low vacancies, 4.9% 5.2% 4.7% Delivered SF 3,000,000 30,000,000 rent growth will likely continue to outperform the U/C SF vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 Ago Months Ago 20,000,000 2,000,000 historical average over the next few years. 2,643,630 0 0 25,000,000 973,442 3,617,072 5,260,216 2,500,000 15,000,000 LeasingDelivered Activity SF vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 Ago Months Ago 20,000,000 2,000,000 1,500,000 East Brookhollow is a small, in-town industrial 2,643,630 0 0 10,000,000 1,643,789 695,511 1,660,510 15,000,000 submarket adjacent to Dallas Love Field Airport. Leasing Activity vs Previous Qtr vs 12 Months Ago 1,500,000 1,000,000 5,000,000 Most of the submarket’s inventory consists of 10,000,000 1,643,789 South695,511 Stemmons Vital1,660,510 Statistics smaller industrial space, and only about 20 assets 1,000,000 500,000 5,000,000 0 are larger than 100,000 SF. Virtually all inventory South Stemmons Vital Statistics 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 3,000,000 8.0% 500,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 in the submarket is occupied, and its historical 0 2,500,000 7.0% 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 average vacancy rate is one of the lowest in the 3,000,000 8.0% 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019Q1 Q22020Q32020Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Delivered Under Construction metro. Due to the high concentration of flex space 2,500,0002,000,000 7.0% 6.0% 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 Delivered Under Construction and close proximity to downtown the submarket 2,000,0001,500,000 6.0% 5.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 boasts some of the highest rents in the market. 1,500,0001,000,000 5.0% 4.0% 1,000,000 4.0% 500,000 3.0% East Hines North is an in-town industrial 500,000 3.0% 0 2.0% submarket totaling 22.2 million SF of inventory. 0 2.0% The bulk of it is comprised of older industrial (500,000) 1.0% 1.0% facilities smaller than 100,000 SF. Virtually the (1,000,000) 0.0% 0.0% entire industrial inventory in the submarket 20172017201720172017201720172017201820182018201820182018201920182019201920192019201920192020 20202019 2020 2020 runs along Harry Hines Boulevard and the North Q1Q1Q2Q2Q3 Q3Q4 Q4Q1 Q1Q2 Q3Q2 Q4Q3 Q1Q4Q2Q1Q3 Q2Q4 Q3Q1 Q2Q4 Q1 Q2 Stemmons Freeway (I-35), giving tenants access NetNet Absorption Absorption DeliveredDelivered Vacant % Vacant % to many of the major population centers in Dallas.

West Hines North is a small industrial submarket, located east of Las Colinas and the Trinity River and west of I-35 E. The submarket holds very little institutional-quality inventory: Only about a dozen assets are 100,000 SF or larger and nothing of significance has delivered in the past decade. The submarket has not seen much in new construction until recently. Stream Realty Partners recently broke ground on 390,000-SF split between two phases. The first phase completed in April 2020, adding 199,070 SF. The second phase is expected to deliver in May 2020.

Leasing Fundamentals in this older industrial node are strong. Vacancies have trended below the metro average for the entire cycle, and considering the lack of developable land in the submarket, supply should be minimal. Most of the tenant movement in West Brookhollow involves manufacturers, wholesale retailers, home fabrication firms and auto parts distributors. The submarket’s lack of new space limits its upside in terms of attracting major distributors, 3PL’s, and e-commerce firms.

Due to steady absorption and a complete lack of deliveries in the last decade, vacancies in East Hines North are tight. The submarket has outperformed the metro average for years: Its vacancy rate has trended below the metro average since the early 2000s, with the delta ranging from 300-400 basis points since 2014. Underlying the tight vacancy rate in the submarket is the lack of large availabilities here. As of 20Q1, there were no buildings with more than 100,000 SF of contiguous availability.

Movers & Shakers Largest Vacancies: South Stemmons Tenant SF Building 1330 Regal Row – 250,700 sf Geodis 616,875 3700 Pinnacle Point Drive Core Logistics Center Bldg B – 199,070 iGPS 121,766 3940 Pipestone Rd 8801 Ambassador Row – 183,443 sf Adept International Inc 52,084 304-308 W Mockingbird Lane 2007 Royal Lane – 121,997 sf South Stemmons CKS Packaging Inc 50,560 2829 Merrell Rd

The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. 16 The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. Existing Inventory Vacancy Delivered Inventory Under Construction Leasing Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity Northwest Dallas Industrial Vacancy Northwest Dallas Industrial Net Absorption Construction 2017 Q1 105,894,770 7.0% 1,334 6,188,701 5.8% 1,797,104 5 1,718,678 13 2,026,888 1,376,293 2,000,000 2017 Q2 106,237,993 1,338 5,954,550 5.6% 577,374 4 343,223 11 1,841,471 2,044,671 6.0% 2017 Q3 1,340 106,379,225 5,430,554 5.1% 665,228 2 141,232 10 1,821,427 1,891,353 Existing Inventory Vacancy Delivered Inventory Under Construction 1,500,000 Leasing 5.0% 2017Period Q4 1,343 107,062,113 4,920,823 4.6%Net Absorption1,192,619 3 682,888 Under12 1,613,823 1,292,261 # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity Northwest Dallas Industrial Vacancy Northwest Dallas Industrial Net Absorption 2018 Q1 1,343 107,062,113 5,150,265 4.8% (229,442) 0 0 Construction13 1,636,473 2,076,432 1,000,000 2017 Q1 105,894,770 7.0% 4.0% 2018 Q2 1,3341,350 107,622,4446,188,7015,049,2925.8% 4.7%1,797,104 661,3045 1,718,6787 560,33113 2,026,88811 1,376,2932,174,846 1,820,734 2,000,000 2017 Q2 1,338 106,237,993 5,954,550 5.6% 577,374 4 343,223 11 1,841,471 2,044,671 2018 Q3 1,355 108,062,262 5,317,845 4.9% 171,265 6 689,418 8 1,880,904 3,023,4106.0% 3.0% 2017 Q3 1,340 106,379,225 5,430,554 5.1% 665,228 2 141,232 10 1,821,427 1,891,353 500,000 2018 Q4 1,361 108,664,006 5,214,121 4.8% 544,008 3 544,584 12 2,475,540 2,995,746 1,500,000 2017 Q4 1,343 107,062,113 4,920,823 4.6% 1,192,619 3 682,888 12 1,613,823 1,292,261 5.0% 2.0% 2019 Q1NORTHWEST1,362 108,735,182 5,153,377 4.7% 131,920 DALLAS2 175,476 18 3,374,259 2,554,205 2018 Q1 1,343 107,062,113 5,150,265 4.8% (229,442) 0 0 13 1,636,473 2,076,432 0 4.0% 1,000,000 20182019 Q2 Q2 1,3501,363 107,622,444109,369,7465,049,2924,851,7004.7% 4.4%661,304 899,1577 560,3311 634,56411 2,174,84619 1,820,7342,788,655 3,042,052 1.0% 20182019 Q3 Q3 1,3551,366 108,062,262110,086,1645,317,8455,029,1634.9% SUBMARKET4.6%171,265 576,0396 689,4183 716,4188 1,880,90416 3,023,4102,060,303 2,764,0073.0% 500,000 (500,000) 0.0% 2018 Q4 1,361 108,664,006111,284,1365,214,121 4.8% 544,008 3 544,584 12 2,475,540 2,995,746 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2019 Q4 1,374 5,574,709 5.0% 652,426 8 1,197,972 13 1,358,074 2,214,1532.0% 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2019 Q1 1,362 108,735,182 5,153,377 4.7% 131,920 2 175,476 18 3,374,259 2,554,205 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 Q1 1,380 111,688,584 6,001,558 5.4% (22,401) 6 404,448 18 2,747,468 1,763,019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 0 Q4 Q1 Q2 2019 Q2 1,363 109,369,746 4,851,700 4.4% 899,157 1 634,564 19 2,788,655 3,042,052 1.0% 2020 Q2 1,382 111,736,067 6,028,074 5.4% 20,967 2 47,483 16 2,699,985 1,433,048 2019 Q3 1,366 110,086,164 5,029,163 4.6% 576,039 3 716,418 16 2,060,303 2,764,007 (500,000) 0.0% 2019 Q4 1,374 111,284,136 5,574,709 5.0% 652,426 8 1,197,972 13 1,358,074 2,214,153 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 Q1 1,380 111,688,584 6,001,558 5.4% (22,401) 6 404,448Northwest18 Dallas2,747,468 Overview1,763,019 Q1 Q2 Q3 Q4 Q1 Q2NorthwestQ3 Q4 Q1 DallasQ2 Q3 IndustrialQ4 Q1 Q2 Leasing Activity Northwest Dallas Industrial Construction 2020 Q2Absorption1,382 111,736,067vs Previous6,028,074 Qtr 5.4% vs 20,96712 Months Ago 2 47,483Healthy leasing16 activity2,699,985 in North1,433,048 Stemmons/ 3,500,000 Valwood has enabled vacancies to run well-below 40,000,000 20,967 -22,401 899,157 metro norms over recent years. However, the Northwest Dallas Industrial Leasing Activity Northwest Dallas Industrial Construction Vacancy vs Previous Qtr vs 12 Months Ago submarket has been adding about 1 million SF 3,000,000 35,000,000 Absorption vs Previous Qtr vs 12 Months Ago 3,500,000 5.4% 5.4% 4.4% of inventory a year since 2017. The construction 40,000,000 20,967 -22,401 899,157 30,000,000 U/C SF pipeline is still stable, with 410,000 SF of new 2,500,000 Vacancy vs Previous Qtr vs 12 Months Ago 3,000,000 35,000,000 vs Previous Qtr vs 12 Months Ago space currently underway. Despite a string of new 25,000,000 2,699,9855.4% 5.4%2,747,468 4.4% 2,788,655 completions, demand has been able to keep pace. 2,000,000 30,000,000 DeliveredU/C SF SF vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 Ago Months Ago In turn, this trend should keep vacancies in check 2,500,000 20,000,000 25,000,000 2,699,98547,483 2,747,468404,448 2,788,655 634,564 in the near term. 2,000,000 1,500,000 15,000,000 LeasingDelivered Activity SF vs Previous Qtr vs 12 Months Ago The Metropolitan/Addison Submarket has a 20,000,000 vs Previous Qtr vs 12 Months Ago dense concentration of both office and industrial 47,483 404,448 634,564 10,000,000 1,433,048 1,763,019 3,042,052 product. Its location near many of Dallas’s 1,500,000 15,000,000 Leasing Activity 1,000,000 vs Previous Qtr vs 12 Months Ago population nodes makes it an attractive option 1,433,048 1,763,019 3,042,052 10,000,000 5,000,000 Northwest Dallas Vital Statistics for industrial tenants seeking access to some of 1,000,000 the most affluent and fastest-growing suburbs of 500,000 5,000,000 0 2,000,000 Northwest Dallas Vital Statistics 7.0%Dallas. 500,000 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2,000,000 7.0% 0 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 6.0%In the past 12 months, the submarket experienced 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019Q1 Q22020Q32020Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1,500,000 0 Delivered Under Construction 6.0% 170,000 SF of net absorption, and most of the 2017 2017 2017 2017 2018 2018Q12018Q22018Q32019 Q42019 2019Q1 2019Q2 2020Q32020Q4 Q1 Q2 Q3 Q4 Q1 Q2 1,500,000 5.0% Delivered Under Construction 5.0% activity was leases ranging from 50,000-70,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1,000,000 SF. This is a reflection of the type and size of stock 1,000,000 4.0% 4.0% found in the area. For example, Sourcing Partners 3.0% 500,000500,000 3.0% took 76,800 SF of warehouse space in mid-2019 at 14325 Gills Road. The property is located in 2.0% 2.0% 0 0 a cluster of older warehouse distribution space 1.0% 1.0%north of 635 and west of the Dallas North Tollway. At $9.20, the submarket boasts some of the (500,000)(500,000) 0.0% 0.0% highest rents in the metroplex, slightly below the 201720172017201720172017201720172018 2018201820182018201820182019201820192019201920192019 20192020 20202019 2020 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 tech-heavy corridors of Plano and Richardson, Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net Absorption Delivered Vacant % which are both north of $10/SF. Net Absorption Delivered Vacant % Leasing Vacancies in North Stemmons/Valwood trended above the metro average through much of its history. That’s changed over the last decade, as the submarket has coupled strong demand with a lack of supply, leading to impressive vacancy compression the last few years. This trend was most apparent in big-box spaces: Vacancies on assets larger than 200,000 SF peaked north of 20% in 2009, but after years of steady absorption, they have hovered near 3% since the start of 2017. Currently, the submarket is experiencing strong positive net absorption and has topped the levels of 2018. Two examples are 1001 W. Crosby Road and 2325 E. Beltline, both of which recently announced companies occupying space for a combined total of 254,000 SF. Annual rent growth has been positive at 3.6%. Over the last 12 months, the submarket absorbed 430,000 SF.

Even among other older, inner-ring suburbs of Dallas, Metropolitan/Addison stands out for having delivered hardly any industrial space since 2010. Areas such as East Brookhollow, West Brookhollow, and Central East Dallas haven’t seen much supply, either. The total lack of supply, coupled with steady absorption, caused vacancies to fall well below the submarket’s historical average mark.

Movers & Shakers Largest Vacancies: Tenant SF Building 1910 N Josey Lane – 259,900 sf HD Supply 525,641 550 Lakeside Parkway 3401 Gardenbrook – 133,200 sf Kuehne & Nagel 267,902 1800 Waters Ridge Dr 2040 McKenzie Drive – 129,611 sf United Laboratories 131,840 1270 Champion Circle 1700 Columbian Club Dr – 114,910 sf Duralast 90,000 2940 Eisenhower Street 14325 Gillis Rd – 98,500 sf Largest Vacancies: BrightStar Care 274,994 350 Lakeside Pkwy Northwest Dallas 1330 Regal Row – 250,700 sf Teltech Communications 198,854 1901 Lakeside Parkway Core Logistics Center Bldg B – 199,070 CTDI 185,364 1001 Lakeside Parkway 8801 Ambassador Row – 183,443 sf 2007 Royal Lane – 121,997 sf Northwest Dallas