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Industrial Market Snapshot

Economic Indicators

Q2 12 Q2 13St. LouisEmployment

1310.4 1319.8

St. LouisUnemployment

7.30% 7.00%

U.S. CCI 65.4 81.4

U.S. Unemployment 8.20% 7.60%

Vacancy Rate

ST. LOUIS INDUSTRIAL

Market Tracker Vacancy8.2%*Arrows = Current Qtr Trend

Net Absorption639,164 SF

Deliveries0 SF

Effective Ren$4.07 NNN

Following a strong frst quarter, the industrial market realized additional occupancygrowth in the second quarter o 2013. A total o 639,000 square eet o positiveabsorption was realized in the quarter as the vacancy rate held at 8.2%. The growth orthe industrial sector marks the ourth consecutive quarter o positive absorption withover 2,100,000 square eet absorbed over that time.

The 639,000 square eet o positive absorption included 479,000 square eet o newlyconstructed space at the Westway I building in Edwardsville. Contegra ConstructionCompany doubled the distribution center or Procter & Gamble, which expanded intothe new space. This expansion represented the only new construction brought to markein the second quarter. GM announced that they will continue to expand in Wentzvillewith the addition o a 114,000 square oot stamping plant. The stamping plant will beconstructed at the same location where they are building a 500,000 square oot bodyshop. Construction on the stamping plant will begin in July 2013 and GM expects thepress to be operational by early 2015.

Modern Bulk continued to perorm well in the second quarter, realizing 719,000 squareeet o positive absorption, though this was partially driven by the build-to-suit or Procte& Gamble at Westway I. Other signifcant transactions in the modern bulk space in thequarter included TAGG Logistics relocating and expanding rom 147,000 square eet oofce and bulk warehouse space in Maryland Heights to 203,000 square eet omodern bulk space at Hazelwood Logistics Center I and Cord Moving and Storageswapping 55,000 square eet o bulk warehouse space at Earth City Industrial Center 3or 55,000 square eet o modern bulk space on Rider Trail in Earth City. Servicecenters, bulk warehouses, and ofce warehouses all took a step back in the secondquarter, losing 62,000 square eet, 72,000 square eet, and 127,000 square eet,

respectively.

Geographically, occupancy growth was realized in the Metro East, South County, St.Charles County, and North County, while losses were experienced in the City, Mid-County, and West County. The Metro East had the strongest perormance o any o theSt. Louis area markets with 510,000 square eet o absorption, primarily driven by theProcter & Gamble expansion. North County realized 296,000 square eet o positiveabsorption in the quarter, which was primarily driven by the previously discussed moveby TAGG Logistics. St. Charles County realized 207,000 square eet o absorption, whichwas partially the result o ALMO Distribution occupying 129,000 square eet o modernbulk space at Fountain Lakes II.

The worst perorming market in the quarter was the City, which realized 215,000 squareeet o negative absorption, which pushed the vacancy rate to 8.4%. This loss waslargely driven by Sigma Aldrich vacating 127,000 square eet at St. Louis CommerceCenter II and LaBarge Properties vacating 103,000 square eet o space at 3400Morganord Rd. The City and Mid-County are the only two markets which have notimproved since the signifcant losses experienced in the industrial market in 2009.

Net Absorption

Another Quarter of Strong Growth for the Industrial Market

5%

6%

7%

8%

9%

10%

2008 2009 2010 2011 2012 2013

SquareFeet(Millions)

201320122011201020092008

-2

-1.5

-1

-.5

0

.5

1

1.5

St. Louis Second Quarter 2013

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Tim Walsh

Managing Principal

7700 Forsyth Boulevard

9th Floor

St. Louis, Missouri 63105

Tel: 314.746.0326

Fax: 314.862.1648

Email: tim.walsh@cassidyturley.com

The inormation contained within this report is

gathered rom multiple sources considered to be

reliable. The inormation may contain errors or

omissions and is presented without any warranty

or representations as to its accuracy.

Copyright 2013 Cassidy Turley.

All rights reserved.

Cassidy Turley Industrial Market SnapshotSt. Louis, Missouri Second Quarter 2013

About Cassidy Turley

Cassidy Turley is a leading commercial real estate services provider with more than 3,800 proessionals in

more than 60 ofces nationwide. Based in Washington, DC, the company represents a wide range o clients

rom small businesses to Fortune 500 companies, rom local non-profts to major institutions. The frm

completed transactions valued at $22 billion in 2012, manages approximately 400 million square eet on

behal o institutional, corporate and private clients and supports more than 23,000 domestic corporate

services locations. Cassidy Turley serves owners, investors and tenants with a ull spectrum o integrated

commercial real estate servicesincluding capital markets, tenant representation, corporate services, project

leasing, property management, project and development services, and research and consulting. Cassidy

Turley enhances its global service delivery outside North America through a partnership with GVA, giving

clients access to commercial real estate proessionals in 65 international markets. Please visit

www.cassidyturley.com or more inormation about Cassidy Turley.

Key Lease Transactions 2Q 13

Key Sales Transactions 2Q 13

PROPERTY SF TENANT TRANSACTION TYPE SUBMARKET

5620 Inner Park Dr. 1,262,648 Conopco Inc. (UniLever) Renewal Edwardsville

372 Hazelwood Logistics Center Dr. 202,613 TAGG Logistics New Hazelwood

5415-5463 Phantom Dr. 126,642 USPS Renewal Hazelwood

12949-12955 Enterprise Way 88,425 Store Supply New Hazelwood

160-184 Corporate Woods Ct. 63,728 Keystone Automotive Renewal Earth City

2392 Grissom Dr. 61,293 Mary Elle Fashions d/b/a Meridian Renewal & Expansion West Port

4238-4240 N. Rider Trail, Ste 55,049 Cord Moving & Storage New Earth City

PROPERTY SF BUYER SELLER SUBMARKET

17 Cermak Blvd. 202,352 Modineer Co. Wainwright Properties Ltd St. Charles County

9711-9719 Green Park Ind 80,000 Burdrovich Real Estate WestCore/DRA Kirkwood South

183-189 McDonnell Blvd. 70,703 WJL Services Trustco, LLC Hazelwood

5202-5240 S. Thirty-eighth 57,055 Hayes Dev LLC Bill Austin City South

4500 Swan Ave. 51,500 JGDD SWAN LLC SSLJ LLC City South

Industrial SubmarketsSt. Louis, Missouri

SUBMARKETTOTAL

BLDGSINVENTORY

SUBLET

VACANT

DIRECT

VACANT

VACANCY

RATE

CURRENT NET

ABSORPTION

YTD NET

ABSORPTION

UNDER

CONSTRUCT

City 1,574 66,500,462 224,192 5,371,959 8.4% (215,408) (344,696) -

Metro East 288 27,288,023 - 1,304,493 4.8% 510,451 545,338 -

Mid-County 732 24,856,752 43,656 2,168,148 8.9% (105,785) (121,063) -

North County 588 47,087,727 84,224 5,044,327 10.9% 295,568 516,586 227,50

South County 559 20,423,678 164,500 1,658,383 8.9% 110,597 235,729 -

St. Charles County 559 26,006,255 20,000 1,039,958 4.1% 206,708 223,282 140,87

West County 600 22,753,172 27,500 2,011,943 9.0% (162,967) 58,316 -

By Property Type

Modern Bulk 86 30,685,101 153,845 3,271,595 11.2% 719,131 744,262 227,50

Traditional Bulk 267 34,293,586 205,925 4,540,058 13.8% (71,575) 78,271 -

Ofce/Warehouse 3,610 99,405,220 157,952 6,513,152 6.7% (127,079) 240,898 140,87

Manuacturing 511 55,057,999 26,350 2,787,970 5.1% 124,694 124,367

Service Centers 319 12,806,105 20,000 1,387,330 11.0% (62,145) (129,318) -

Other 107 2,668,058 - 99,106 3.7% 56,138 54,648

ST. LOUIS TOTAL 4,900 234,916,069 564,072 18,599,211 8.2% 639,164 1,113,492 368,370

1. St. Charles County2. North County3. West County4. Mid County

5. St. Louis City6. Metro East7. South County

1

3

7

4

2

5

1

3

7

4

2

5

64

4455

70

270

170

255

mailto:tim.walsh@cassidyturley.comhttp://www.cassidyturley.com/http://www.cassidyturley.com/mailto:tim.walsh@cassidyturley.com