2012 Gulf Coast Real Estate Summit Industrial Market Overview Mobile/Baldwin County Jeremy B. Milling, CCIM White-Spunner & Associates, Inc. Industrial Market Overview Mobile/Baldwin County Jeremy B. Milling, CCIM White-Spunner & Associates, Inc.

Mobile County-Higher Concentration of Industrial Space Mobile River Industrial Park (Jacintoport) I-65/Beltline Service Road (East and West) Highway 43 Corridor Brookley Aeroplex Lakeside Drive/Halls Mill Road Corridor Rangeline Road/Highway 90/Bellingrath Road Mobile County-Higher Concentration of Industrial Space Mobile River Industrial Park (Jacintoport) I-65/Beltline Service Road (East and West) Highway 43 Corridor Brookley Aeroplex Lakeside Drive/Halls Mill Road Corridor Rangeline Road/Highway 90/Bellingrath Road

More segmented within the individual municipalities Bay Minette-Industrial Park Loxley- North of I-10 along Highway 59 and CR 43 Robertsdale-Industrial Park Fairhope-Industrial Park Foley-Industrial Park Gulf Shores-Industrial Park More segmented within the individual municipalities Bay Minette-Industrial Park Loxley-North of I-10 along Highway 59 and CR 43 Robertsdale-Industrial Park Fairhope-Industrial Park Foley-Industrial Park Gulf Shores-Industrial Park

Office-Warehouse (±) 5,000 square feet up to +/-50,000 square feet Minimal office space (10-50%) depending on building size and use (±) 14-+/-30 eave height with average of (±) Masonry or metal construction-primarily metal in our market Rental Rate Range: ( ±) $4.50-$8.50 p.s.f. (±) 5,000 square feet up to ( ±) 50,000 square feet Minimal office space (10-50%) depending on building size and use (±) 14- ( ±) 30 eave height with average of (±) Masonry or metal construction-primarily metal in our market Rental Rate Range: ( ±) $4.50-$8.50 p.s.f.

Office-Warehouse (example)

Bulk Warehouse/Distribution (±) 50,000 square feet up to (±) 350,000 square feet (±) 10% or less of office area Eave height of 20 plus 50 column spacing Tilt up or metal construction Rental Rate Range: (±) $1.50-$3.50 p.s.f. (±) 50,000 square feet up to (±) 350,000 square feet (±) 10% or less of office area Eave height of 20 plus 50 column spacing Tilt up or metal construction Rental Rate Range: (±) $1.50-$3.50 p.s.f.

Bulk Warehouse/Distribution-Johnson Development Building

Bulk Warehouse/Distribution-Keyport Warehousing (Baldwin County)

Flex Space Greater amount of office space with minimal warehouse Typically masonry construction Located along higher traffic arteries within the City Two examples: Dauphin Center, Gateway Center West Rental Rate Range: ( ±) $13.00 p.s.f. Greater amount of office space with minimal warehouse Typically masonry construction Located along higher traffic arteries within the city Two examples: Dauphin Center, Gateway Center West Rental Rate Range: ( ±) $10 - $13 p.s.f.

Flex Space-Gateway Center West

Industrial Product Types Gateway Center West (Rear View)

Industrial Land Inland Sites Typically ( ±) 1 acre and greater Prices range from ( ±) $20,000 per acre up to ( ±) $200,000 per acre ($4/s.f.) Waterfront Sites Deep water: located along the Mobile River or Theodore Industrial Canal Barge Sites: located along small rivers or bayous with average maintained depths of ( ±) 12 Inland Sites Typically ( ±) 1 acre and greater Prices range from ( ±) $20,000 per acre up to ( ±) $200,000 per acre ($4/s.f.) Waterfront Sites Deep water: located along the Mobile River or Theodore Industrial Canal Barge Sites: located along small rivers or bayous with average maintained depths of ( ±) 12

Overview ( ±) 15,000,000 square feet ( ±) 3,000,000 square feet available ( ±) 18% vacancy rate Overview ( ±) 15,000,000 square feet ( ±) 2,750,000 square feet available ( ±) 18% vacancy rate

Overview (contd) Office Warehouse Space Average Asking Price: ( ±) $5.50 per s.f. Average Lease Price: ( ±) $4.80-$5.00 per s.f. Bulk Warehouse/Distribution Space Average Asking Price: ( ±) $2.50-$3.50 per s.f. Average Lease Price: ( ±) $1.50-$3.00 per s.f. Flex Space Average Asking Price: ( ±) $11.50 per s.f. Average Lease Price: ( ±) $10.00 per s.f. Overview (contd) Office Warehouse Space Average Asking Price: ( ±) $5.50 per s.f. Average Lease Price: ( ±) $4.80-$5.00 per s.f. Bulk Warehouse/Distribution Space Average Asking Price: ( ±) $2.50-$3.50 per s.f. Average Lease Price: ( ±) $1.50-$3.00 per s.f. Flex Space Average Asking Price: ( ±) $11.50 per s.f. Average Lease Price: ( ±) $10.00 per s.f.

Unknowns Employment Election Year Effect Financing Unknowns Employment Election Year Effect Financing

Probable, but slight, uptick in activity Continued bargains in the market Probable, but slight, uptick in activity Continued bargains in the market

Existing Industries

Industrial Future in our Market Influence of the Port and Mobile Container Terminal Industrial Future in our Market Influence of the Port and Mobile Container Terminal

Additional Economic Development Tools Advantage Sites-Virginia Station Additional Economic Development Tools Advantage Sites-Virginia Station

Expansion of the Panama Canal Benefits to our Region Expansion of the Panama Canal Benefits to our Region

Parting Comments 2011: Larger space faired better than smaller office-warehouse product 2012: Continued trend of 2011 with possible increase in activity EADS Shipbuilding in Mobile on the Rise 2014 Prediction Panama Canal Expansion Intermodal Yard Completion Parting Comments 2011: Larger space faired better than smaller office-warehouse product 2012: Continued trend of 2011 with possible increase in activity EADS Shipbuilding in Mobile on the Rise 2014 Prediction Panama Canal Expansion Intermodal Yard Completion

Special Thanks To The Following Lorrie Gaillard, Baldwin Transfer Company, Inc. Mac Taul, Merchants Transfer Company, Inc. Jimmy Lyons, Alabama State Port Authority Brian Harold, Mobile Container Terminal LLC Troy Wayman, Mobile Area Chamber of Commerce Josh Thornton, Baldwin County Economic Development Alliance Andy Halligan, Johnson Development Special Thanks To The Following Lorrie Gaillard, Baldwin Transfer Company, Inc. Mac Taul, Merchants Transfer Company, Inc. Jimmy Lyons, Alabama State Port Authority Brian Harold, Mobile Container Terminal, LLC Troy Wayman, Mobile Area Chamber of Commerce Josh Thornton, Baldwin County Economic Development Alliance Andy Halligan, Johnson Development