Q4 2009 Industrial Market Data

Radius Commercial is pleased to provide our 2009 Q4 Industrial Market Report for your review. The firm provides tenant representation services to tenants and users throughout the Denver Metropolitan area. Please visit our website for additional information at www.radiuscre.com.

Radius Industrial Market Outlook

With the falling value of the US dollar and industrial production showing signs of improvement in Asia Pacific countries, US companies involved in global markets could see increased demand in 2010 as US exports reached bottom and began to climb in late 2009. The Purchasing Managers Index turned positive for the last five months of 2009. The last positive numbers reported were in November 2007. Finally, new orders for durable goods as of last November appear to have bottomed out in 2009, showing a slight increase to $166.9B.

Q4 2009 Denver Metro Industrial Market Overview

• Industrial Vacancy Rate 8.6%, down from 8.7% at end of Q3.

• Overall Net Absorption for Denver Industrial was positive 485,645 SF;

   • Flex: -19.618 SF

   • Warehouse:+505,263 SF

• Overall Average Quoted Industrial lease rates were up 0.7% to $6.10/SF

• Average Quoted Flex lease rates increases slightly to $9.38/SF from $9.36/SF

• Average Quoted Warehouse rates dropped to $5.02/SF from $5.08/SF

• Vacant Sublease Space increased 0.5% to 795,088 SF

   • Warehouse 533,504 SF up from Q3’s 506,620 SF

   • Flex 261,584 SF down from Q3’s 284,813 SF

Construction Deliveries

• Construction of 1 Building totaling 28,947 SF delivered in Q4 2009.

• There were 687,600 SF of Industrial Space under construction at the end of Q4 2009.

• 5 year Cumulative Employment Growth of 0.0% and Inventory Growth at 4.0% create an oversupply of 4.0%

Sales Activity

2009 sales activity was down compared to the previous year. During the first nine months of 2009 there were 43 industrial sales transactions with a total volume of $136,151,140. The price per square foot has averaged $52.65, compared with the same period sales in 2008 on 116 transactions totaling $427,099,556 at an average sale price of $61.51/SF.

Source: CoStar

The Past Decade

Given the chance to look over our shoulder, the following data reflects the past ten years for the Denver Metro Region Industrial market.

Denver Industrial Market 2000-2009 Historical Absorption, Deliveries & Vacancy

Denver Industrial Market 2000-2009 Direct, Sublet & Average Rental Rates

For more information on this report or on the overall Industrial Market, please CONTACT:

• Tim Callahan tcallahan@radiuscre.com

• Jason Krawiecki jasonk@radiuscre.com