City of Barstow Commercial Real Estate Mid-Year Review June 2, 2014 Presented by Donald P. Brown President/Broker

Barstow Commercial Market

Geographic Location Population 41,704 Households 13,990 Average Household Income $56,532 Medium Household Income $45,941 Per Capita $20,202 Total Specified Consumer Spending $347,084

BARSTOW… “A Unique Market" Small business with “OWNERSHIP” has serviced area for basic needs Market changing due to transportation need and Air Quality Management Issue’s Community needs vs. the needs of the big box user Future challenges, Government Regulation, Energy Requirements (AB-1103) and ADA Requirement (CASP)

Barstow Market Statistics   Period # Bldgs Total RBA Total Vacant SF Total Vacant % Total Net Absorption RBA Under Const. Industrial 2014 Q1 77 1,235,567 156,720 12.7% 3,500 Retail 339 2,832,226 503,028 17.8% 17,654 Office 136 565,686 50,315 8.9% 5,860 Total Commercial Inventory 552 4,633,479 710,163 13.14% 27,014

Barstow Industrial

Industrial Period # Bldgs Total RBA Total Vacant SF Total Vacant Avail % Total Net Absorption RBA Under Const Total Average Rate 2013 4Q 77 1,235,567 159,635 12.9% 126,738 $0.37/nnn 2014 1Q 98,614 8% 64,106 $0.35/nnn

Barstow Retail

Retail Period # Bldgs Total RBA Total Vacant SF Total Vacant Avail % Total Net Absorption RBA Under Const Total Average Rate 2013 4Q 339 2,832,226 510,158 18% 8,015 $1.01/nnn 2014 1Q 499,780 17.6% 3,248 $0.98/nnn

Destination Retail (Spanish Trails) Barstow’s Future Service Commercial Development (Main St.; Replacing Aging Inventory) Warehousing/Distribution/Logistics/ECommerce (Barstow Industrial Park) Destination Retail (Spanish Trails) Hospitality/Gaming? (Lynwood Submarket) Manufacturing? (Scuderia and Affiliated Business’s)

Conclusion Barstow Commercial Real Estate market has stabilized with: Declining Absorption Rate - Positive Stabilized Lease Rate - Positive Vacancy Factor

Business Located in Barstow by Lee & Associates

Always Remember…. Business is a sensitive thing. It goes where it is invited, Stays where it is cared for, And grows where it’s cultivated.

Lee & Associates has 50 offices Nationwide with over 900 agents to serve you. Industrial, Office & Retail Property Sales/Leasing Tenant Representation & Relocation Real Estate Investment Property & Portfolio Management Property Acquisition & Disposition Market Research 14369 PARK AVENUE, SUITE 200, VICTORVILLE, CA 92392 685 N. 1st. AVENUE SUITE 207, BARSTOW, CA 760.241.5211 WWW.LEE-ASSOCIATES.COM Corporate ID# 01328146