INDUSTRIAL MARKET REVIEW Chip Worley Bainbridge Patrick Mumey, SIOR - PDF document

INDUSTRIAL MARKET REVIEW INDUSTRIAL MARKET REVIEW Industrial Reporters Ron Biesecker & Christine Kaempfe – Greenbrier INDUSTRIAL MARKET REVIEW Chip Worley – Bainbridge Patrick Mumey, SIOR – Cavalier Worth Remick – Norfolk Commerce Park/Central Norfolk Charles Dickinson – Norfolk Industrial Park Billy King, SIOR – West Side/Midtown Norfolk and Isle of Wight Brian Baker – Lynnhaven Bobby Beasley – Greenwich/Cleveland and Airport Industrial Park Abe Ellis, SIOR – Portsmouth Bill Throne, CCIM – Suffolk Robert L. “Bobby” Phillips, Jr. Clay Culbreth, CCIM, SIOR & Stephanie Sanker, CCIM – First Vice President Copeland/Lower Peninsula Industrial Brokerage Bobby Phillips – Oyster Point/ Middle Peninsula & Williamsburg Extended Global Supply Chain Solutions Trip Ferguson – Oakland/Upper Peninsula March 12, 2008 INDUSTRIAL MARKET REVIEW INDUSTRIAL MARKET REVIEW US Population Density Most of the nation’s Port of Virginia population and consumer demand is still heavily located in the eastern- half of the country. INDUSTRIAL MARKET REVIEW INDUSTRIAL MARKET REVIEW http://www.transportationfortomor row.org/final_report/ 1

INDUSTRIAL MARKET REVIEW INDUSTRIAL MARKET REVIEW Panama vs. Suez Canal Panama vs. Suez Canal Projected Coastal Freight Growth Port of Virginia Hong Kong, China Suez Canal Panama Canal Via Panama Canal Via Suez Canal Distance: 11,021 nautical miles Distance: 11,705 nautical miles INDUSTRIAL MARKET REVIEW INDUSTRIAL MARKET REVIEW Modern Terminals Modern Terminals Newport News Virginia Inland Port (VIP) Marine Terminal (NNMT) Front Royal, VA Newport News, VA Norfolk International Terminals (NIT) Norfolk, VA APM Terminal Portsmouth, VA Future Craney Island Terminal Portsmouth Marine Terminal (PMT) Portsmouth, VA Portsmouth, VA INDUSTRIAL MARKET REVIEW INDUSTRIAL MARKET REVIEW Future Craney Island APM/Maersk Terminal in Portsmouth June 2007 Phase 1 – – June 2017 June 2017 Phase 2 – Phase 2 – June 2032 June 2032 Phase 1 Future Craney Island Marine Terminal Phase 1 - complete 2007 Phase 2 - as volume dictates Total Acreage: 600 Total Acreage: 220 Pier Length: 8000 ft. Pier Length: 3000 ft. Total Acreage: 291 Total Acreage: 230 Marine Terminal Depth: 52 ft. Pier Length: 4000 ft. Depth: 52 ft. Pier Length: 3200 ft. Depth: 55 ft. Cranes: 15 Cranes: 6 Depth: 55 ft. Cranes: 12 Capacity: 5M TEUs Capacity: 1.5M TEUs Cranes: 6 Capacity: 2.2 Million TEUs Cost: $1.06B Cost: $1.2B Capacity: 1 Million TEUs Cost: $250 Million Cost: $500 Million 2

INDUSTRIAL MARKET REVIEW INDUSTRIAL MARKET REVIEW Distribution Facilities in Virginia Ferguson Enterprises 460,000 Home Depot Kohl’s Corp. 750,000 425,000 Rite Aid Family Dollar AmeriServ Food Corp. 970,000 Distribution 265,000 216,000 Banta Books Von Holtzbrinck 260,000 Publishing Svcs. CVS 630,000 550,000 Best Buy, Inc. 66 McLane Foods 1,000,000 81 364,000 Wal-Mart 880,000 Country Vintner Value City Furniture Target 120,000 Ericsson, Inc. 350,000 Stores 107,000 1,600,000 95 Richfood Bausch & Lomb Holdings, Inc. 40,000 1,300,000 64 Hew lett Packard J. Crew 1,440,000 292,5000 64 Advance Auto Parts 64 DSC Logistics 442,000 700,000 Orvis Co. 340,000 Wal-Mart, Inc. Hanover 3,000,000 Direct Home Shopping 550,000 Netw ork 255,000 85 95 Volvo New port New s, 1,000,000 Dollar Inc. 378,800 Tree, Inc. 81 QVC 476,000 Ace Netw ork, Lillian Vernon, Camrett Hardw are Inc. Target Inc. 800,000 Jones Apparel Logistics 800,000 1,200,000 Stores Group, Inc. 345,000 1,800,000 900,000 Nautica Hooker 525,000 CONTAINER VOLUME Sysco Food Furniture Diversified 1 - 1,000 Wal-Mart Systems Corp. Inc. Distribution Inc. Mid 1,200,000 285,000 1,001 - 2,500 580,000 400,000 Mountain 2,501 - 7,500 Foods KB Toys 7,501 - 15,000 1,000,000 435,000 15,001 - 55,000 INDUSTRIAL MARKET REVIEW INDUSTRIAL MARKET REVIEW Hampton Roads Industrial Sub-Markets Wal-Mart Distribution Facility – James City County INDUSTRIAL MARKET REVIEW INDUSTRIAL MARKET REVIEW Endeavor Center • James City County AAFES Dan Daniels Distribution Center • Oakland Industrial Park, Newport News � 70,000 SF Multi-Tenant Warehouse/Distribution � 35,000 SF leased to Freemont Die � 35,000 SF Available � Divisible to 10,000 SF 3

INDUSTRIAL MARKET REVIEW INDUSTRIAL MARKET REVIEW West Park 2 - Hampton West Park 1 & 3 - Hampton � High Street Equity Advisors � Gateway Warehouses � 180,000 SF Warehouse/Distribution remain available for sublease � Completed 2007 � 515,000 SF in 2 � Divisible to 12,000 SF buildings INDUSTRIAL MARKET REVIEW INDUSTRIAL MARKET REVIEW 2000 Enterprise Parkway - Hampton Enterchange at Hampton � Building 1 – 243,219 SF; 211,119 SF Available � Building 2 – 470,244 SF; 109,497 SF Available � Devon USA – Richmond, VA � Copeland Industrial Park � 135,000 SF Guardian Storage Lease (2007) � First Potomac Realty Trust INDUSTRIAL MARKET REVIEW INDUSTRIAL MARKET REVIEW Bridgeway Commerce Center • Suffolk Bridgeway Business Center � Ashley Capital � Liberty Property Trust � 750,000 SF multi-tenant Warehouse/Distribution � Three Warehouse/Distribution � Completed 81,204 modern renovation 2007 buildings totaling 424,000 SF � Dixie Group Lease – 81,204 SF plus 3 acre “wareyard” � Building I – 130,000 SF, fully leased � Building III – 168,000 SF � Building II – Pad ready, 126,000 SF 4

INDUSTRIAL MARKET REVIEW INDUSTRIAL MARKET REVIEW Cavalier Industrial Park • Bay Warehouses • Chesapeake Cavalier Industrial Park • Johnson Controls Facility Sale � Newly completed 94,330 SF Multi-tenant Warehouse/Distribution � Divisible to 15,835 SF � First Potomac Realty Trust � December 2007 � $6.4 million � Sold to USUI International INDUSTRIAL MARKET REVIEW INDUSTRIAL MARKET REVIEW Hampton Roads – Industrial Market Vacancy Rate (as of the first month of the year) Cavalier Industrial Park • 3800 Cook Boulevard 14.50% 12.50% � Modern renovation and re-tenanting through 2007 10.51% 10.50% � Sold to Exeter Property Group - 2007 7.50% 8.50% 7.40% 6.13% 7.55% 5.99% � 64,000 SF Available 6.50% 5.20% 4.50% 2.50% 2002 2003 2004 2005 2006 2007 2008 Source: ODU Real Estate Market Review 2008 INDUSTRIAL MARKET REVIEW INDUSTRIAL MARKET REVIEW 2007 ODU Hampton Roads Industrial Survey 2007 ODU Hampton Roads Industrial Survey Submarket Totals Submarket Totals Bldgs Bldgs Submarket City Surveyed Reporter Total Sq Ft Vacancy Sq Ft Vacancy % Submarket City Surveyed Reporter Total Sq Ft Vacancy Sq Ft Vacancy % Greenbrier Area Chesapeake 274 Biesecker/Kaempfe 8,342,696 308,286 3.70% Greenbrier Area Chesapeake 274 Biesecker/Kaempfe 8,342,696 308,286 3.70% Bainbridge/S. Elizabeth River Area Chesapeake 133 Worley 5,464,312 385,783 7.06% Bainbridge/S. Elizabeth River Area Chesapeake 133 Worley 5,464,312 385,783 7.06% Cavalier Industrial Park Area Chesapeake 178 Mumey 5,781,645 596,380 10.32% Cavalier Industrial Park Area Chesapeake 178 Mumey 5,781,645 596,380 10.32% Norfolk Commerce Park/ Norfolk 142 Remick 7,076,668 2,609,090 36.87% Norfolk Commerce Park/ Norfolk 142 Remick 7,076,668 2,609,090 36.87% Central Norfolk Area Central Norfolk Area Norfolk Industrial Park Area Norfolk 339 King 10,196,798 655,962 6.43% Norfolk Industrial Park Area Norfolk 339 King 10,196,798 655,962 6.43% West Side/Midtown Norfolk Area Norfolk 261 Dickinson 6,441,519 290,845 4.52% West Side/Midtown Norfolk Area Norfolk 261 Dickinson 6,441,519 290,845 4.52% Lynnhaven Area Virginia Beach 253 Baker 7,449,758 730,961 9.81% Lynnhaven Area Virginia Beach 253 Baker 7,449,758 730,961 9.81% Greenwich/Cleveland Streets Area Virginia Beach 127 Beasley 3,141,006 60,102 1.91% Greenwich/Cleveland Streets Area Virginia Beach 127 Beasley 3,141,006 60,102 1.91% Airport Industrial Park Area Virginia Beach 70 Beasley 3,684,329 330,881 8.98% Airport Industrial Park Area Virginia Beach 70 Beasley 3,684,329 330,881 8.98% City of Portsmouth Portsmouth 154 Ellis 4,004,464 297,805 7.44% City of Portsmouth Portsmouth 154 Ellis 4,004,464 297,805 7.44% City of Suffolk Suffolk 115 Throne 11,535,116 1,477,357 12.81% City of Suffolk Suffolk 115 Throne 11,535,116 1,477,357 12.81% Isle of Wight Isle of Wight 27 King 2,788,716 355,766 12.76% Isle of Wight Isle of Wight 27 King 2,788,716 355,766 12.76% Southside Totals 2,073 75,907,027 8,099,218 10.67% Southside Totals 2,073 75,907,027 8,099,218 10.67% Copeland/Lower Peninsula Area Peninsula 363 Culbreth/Sanker 9,983,484 2,103,397 21.07% Copeland/Lower Peninsula Area Peninsula 363 Culbreth/Sanker 9,983,484 2,103,397 21.07% Oyster Point/Middle Peninsula Area Peninsula 149 Phillips 4,109,297 67,657 1.65% Oyster Point/Middle Peninsula Area Peninsula 149 Phillips 4,109,297 67,657 1.65% Oakland/Upper Peninsula Area Peninsula 97 Ferguson 4,611,983 254,733 5.52% Oakland/Upper Peninsula Area Peninsula 97 Ferguson 4,611,983 254,733 5.52% Williamsburg Extended Area Peninsula 60 Phillips 9,005,095 381,602 4.24% Williamsburg Extended Area Peninsula 60 Phillips 9,005,095 381,602 4.24% Peninsula Totals 669 27,709,859 2,807,389 10.13% Peninsula Totals 669 27,709,859 2,807,389 10.13% Totals 2,742 Sanker 103,616,886 10,906,607 10.53% Totals 2,742 Sanker 103,616,886 10,906,607 10.53% 5