Industrial Panel Jeff Forsberg, CCIM Principal - NAI Puget Sound Properties

Kent Valley BELLEVU E SEATTLE

Vacancy % Vacant w/ Sublease Submarket 2017 Total SF Vacant SF % Vac 3Q, 2017 Sublease SF Total Vacant Space RENTON 9,125,387 251,748 2.76% 1,375 253,123 2.77% SEATAC 3,744,615 43,076 1.15% 17,114 60,190 1.61% TUKWILA 11,836,049 279,185 2.36% 52,881 332,066 2.81% KENT 48,953,663 1,848,944 3.78% 126,914 1,975,858 4.04% AUBURN 21,337,612 382,377 1.79% 84,176 466,553 2.19% SUMNER 17,463,759 548,289 3.14% - KENT TOTAL 112,461,085 3,353,619 2.98% 282,460 3,636,079 3.23%

Vacancy Chart Historical Vacancy Rates Historical Vacancy Rates 10.00% 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 2009 2010 2011 2012 2013 2014 2015 2016 2017 Years Vacancy Rate

Lease Comparable Van Doren’s - ProLogis #3 5530 S 226th Street, Kent, WA 98032 TENANT Washington Shoe Company BUILDING SIZE 58,217 SF OFFICE 9,624 SF SHELL RATE $0.57 OFFICE ADD-ON $0.85 EST. NNN $0.17 CLEAR HEIGHT 26’ DOORS 11 DH, 1 GL LEASE TERM 63 Months

50,000 - 100,000 SF Class A & B Class A Class B Shell Rate Average Years Free Rent Free Rent Ratio 2008 $0.396 3.93 2.60 0.66 2009 $0.315 3.99 4.50 1.13 2010 $0.324 5.84 4.25 0.73 2011 $0.334 5.95 4.80 0.81 2012 $0.336 5.18 4.05 0.78 2013 $0.352 6.67 2.83 0.42 2014 $0.375 6.28 3.67 0.58 2015 $0.418 6.73 3.90 2016 $0.468 6.03 2.76 0.46 2017 $0.498 6.01 2.23 0.37 Shell Rate Average Years Free Rent Free Rent Ratio 2008 $0.373 5.08 1.00 0.20 2009 $0.339 3.28 1.33 0.41 2010 $0.290 6.20 1.89 0.30 2011 $0.278 5.89 3.00 0.51 2012 $0.309 5.01 3.38 0.67 2013 $0.358 4.77 3.44 0.72 2014 $0.345 6.65 3.33 0.50 2015 6.55 3.80 0.58 2016 $0.433 5.37 1.56 0.29 2017 $0.477 6.43 1.86

50,000 - 100,000 SF Class A & B Shell Rates $0.55 $0.50 $0.45 $0.40 $0.35 $0.30 $0.25 $0.20 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Class A Class B

Sale Comparable Van Doren’s 228th - Patterson Bldg 6419 S 228th Street, Kent, WA 98032 SELLER Patterson Investment Company BUYER Hill Investment Co. SALE PRICE $12,500,000 BUILDING SIZE 80,619 SF OFFICE 7,497 SF CAP RATE 4.93% CLEARANCE 25’-29’ DOORS 15 DH, 2 GL

Sale Comparison # Average Investor Owner/User CAP Rate 2008 31 $94.44 14 17 6.65% 2009 19 $67.80 9 10 8.92% 2010 20 $69.06 13 7 7.73% 2011 21 $76.27 7.54% 2012 40 $74.87 26 6.52% 2013 33 $84.79 16 6.22% 2014 35 $92.92 30 5 5.96% 2015 24 $106.61 15 5.88% 2016 37 $111.92 11 4.79% 2017 28 $143.12 18 4.96%

Sale Comparison Average Price Per SF $160.00 $140.00 $120.00 $100.00 $80.00 $60.00 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Sale Comparison Size Shell Rate CAP Rate Price 2009 - CLASS A 100,000 $0.328 8.92% $4,412,556 2015 - CLASS A $0.394 5.88% $8,040,816 2017 - CLASS A $0.498 4.50% $13,280,000