WCAI Industrial Real Estate Update Brian S. Parrish, MBA Vice President November 11, 2010

Presentation Overview Noteworthy Transactions Updates New Construction Proposed Construction Analyzing Flex & Warehouse Today 2011 Forecast & Beyond

Noteworthy Transactions Oakwood Crossings Business Center 100 W. Oakwood Drive, Oak Creek Building Size: 139,726 Sq. Ft. Sale Price: $8,664,000 ($61.96/SF) on 6/29/10 CAP Rate: Mid 8%s Seller: Opus North Corp. Buyer: CenterPoint Properties Trust Inc. Tenant: Yaskawa Electric

Noteworthy Transactions 529 N. River Road, West Bend Building Size: 105,000 Sq. Ft. Sale Price: $1,750,000 ($16.67/SF) on 9/2010 Seller: Milliken Millwork Buyer: Heartland Woodcraft Largest transaction in Washington County to date Vacancy rate dropped from 7.9% (Q2) to 7.3% (Q3) Another large deal is pending

Building Size: 323,610 Sq. Ft. Seller: HSA Commercial Real Estate Buyer (user): Seda International Packaging Group SpA of Naples, Italy Sale Date: November 2010 (Price N/A) 189 new jobs Packaging for ice cream, beverages and fast food containers. Noteworthy Transactions Seda Purchase in Mount Pleasant

85 Acres Demolition almost complete Updates Delphi, Oak Creek

2,200,000 SF on 86 acres $3.5 mm acquisition & $34.6 mm redevelopment To be demolished – 60 acre business park and retail/multi-family Talgo leasing 133,600 Sq. Ft., $2.59/SF, 2 years with extensions Updates Century City Tower Automotive, City of Milwaukee

OTHER UPDATES Post Office in Oak Creek Oak Creek Water Park Chrysler Engine Plant, Kenosha –109 Acres, 1,900,000 SF, years old –Vacant & available – City could take over in 2011 –Not part of industrial property base Updates

1,100,000 Sq. Ft. on 20 Acres Occupancy Q Corporate relocation from Illinois New Construction Uline Corporate Campus Pleasant Prairie, WI

Building Size: 83,000 Sq. Ft. CAP Rate: 9 cap-ish Landlord: CenterPoint Properties Trust Inc. Tenant: Crothall Laundry Services Inc. Delivery Date: Late February 2011 Occupancy: Late May 2011 Notes: Relocation from South Milwaukee New Construction Build-To-Suit, Oak Creek

Occupancy Q ,000 Sq. Ft. Office Building 175,480 Sq. Ft. Warehouse + 135,000 Sq. Ft. Expansion. Irgens Development developed and leased office building. Former space is vacant in Glendale. New Construction Actuant Campus Westbrook Corporate Center, 124 th Street & Westbrook Crossing, Menomonee Falls

Construction finishing Q ,000 Sq. Ft. on 8 Acres $17.5 million factory Developer: MSI General Makes generators for wind turbines Only 12 acres remain in the Industrial Center New Construction Ingeteam Menomonee Valley, Milwaukee, WI

100,000 Sq. Ft. production area Expansion underway Original 135,000 Sq. Ft. built in 2006 New Construction Palermo Villa Inc. Menomonee Valley, Milwaukee, WI

Analyzing Flex & Warehouse Dickman Lease Comps Vs. CoStar Asking Lease Rates Assumptions: 3 years, Excluding Outliers, NNNs $1.50 when leases were gross. Trend: More transactions, more concessions, lower rental rates. Renewals will be a key factor.

Analyzing Flex & Warehouse Landlord/Buyer should be examined: –Ability to consummate lease transactions –Concessions – free rent, TIs –Structure of deal – Cash flow So, what is the CAP rate? KorpaczSE Wisconsin Institutional8.38 %8.0 – 10.0 % Non-Institutional10.63 %10.0 – %

Market Considerations TIFs & Development –Liberty Corporate Preserve (Oak Creek) received construction extension from 2011 to –West Bend – facilitating a purchase Receiverships Refinancing difficulties Short-sales Financing –Creative Sales: Seller notes, land contracts, trades –Continued difficulty in 2011

2011 Forecast & Beyond Uncertainty from elections & high-speed rail will settle Example: The announcement won't mean immediate layoffs, but casts a pall over the future of the [Talgo] plant on the former Tower Automotive property. –Talgo Rep. Speculative development will remain flat –Upcoming large deals will cause supply shortfall in some areas of Racine & Kenosha Counties Positive Absorption will occur Vacancy Rate: Will remain stable during 2011 – 9% benchmark.

2011 Forecast & Beyond Sales: Increasing volume of sales, prices will slowly rise from depressed levels in –Users –Bargain-hunters Leases: Rates will slowly rise from depressed levels in 2011 –Landlord concessions to remain

Contact Information Brian S. Parrish, MBA Vice President The Dickman Company/CORFAC International E. Wisconsin Avenue, Suite 1020 Milwaukee, WI (414)