Atlanta Industrial Market Second Quarter 2004 Atlanta Industrial Market Second Quarter 2004

The Atlanta Industrial Market PinPoint sm TechnologyPinPoint sm Technology –12 market areas –16,482 users –9,898 buildings –438 million sq. ft. of distribution PinPoint sm TechnologyPinPoint sm Technology –12 market areas –16,482 users –9,898 buildings –438 million sq. ft. of distribution

Behind KIR Team Twenty four years PinPoint Database –Custom designed –Inventory every quarter –Shared information by everyone Atlanta’s industrial experts –3,428 transactions since 1995 –48.9 million sq. ft. of Leases and Sales –3,601 acres of land Twenty four years PinPoint Database –Custom designed –Inventory every quarter –Shared information by everyone Atlanta’s industrial experts –3,428 transactions since 1995 –48.9 million sq. ft. of Leases and Sales –3,601 acres of land

Defining Terms Availability –Vacant or available space Activity –Square feet of signed leases Net Absorption –Net results of activity (calculated by spaces vacated and spaces leased) Deals –Actual number of transactions Availability –Vacant or available space Activity –Square feet of signed leases Net Absorption –Net results of activity (calculated by spaces vacated and spaces leased) Deals –Actual number of transactions

Market Inventory: Total Inventory 11.9% 18.6% Vacancy In Millions

Numbers total 4 quarters to end of current quarter Absorption and Activity Activity Absorption In Millions

Total Used Space New Space New/Used Space Availability

Numbers total 4 quarters to end of current quarter New Construction: New Construction Build-to-Suit In Millions

Deals Completed Under 19,999 SF 20, ,999 SF 40, ,999 SF 60, ,999 SF 80, ,999 SF 100,000 & Up Numbers total 4 quarters to end of current quarter

Square Feet Leased Under 19,999 SF 20, ,999 SF 40, ,999 SF 60, ,999 SF 80, ,999 SF 100,000 & Up Numbers total 4 quarters to end of current quarter

Distribution Hot Markets Absorption 17.1%17.1% 17.7%17.7% 42.2%42.2% Percentage of the market's positive net absorption Numbers total 4 quarters to end of current quarter

Distribution Hot Markets Absorption 42.2%42.2% 17.7%17.7% 17.1%17.1% Activity 22.4%22.4% 13.1%13.1% 21.0%21.0% Numbers total 4 quarters to end of current quarter

Distribution Hot Markets Absorption 17.1%17.1% 42.2%42.2% 17.7%17.7% Activity 23.2%23.2% 13.1%13.1% 21.0%21.0% Available Used 18.8%18.8%10.9%10.9%19.2%19.2%

Distribution Hot Markets Absorption 42.2%42.2% 17.7%17.7% 17.1% 17.1% Activity 23.3% 23.3% 13.1%13.1% 21.0%21.0% Available Used 18.8%18.8% 19.2%19.2% 10.9%10.9% 24.5% Available New 19.5% 19.6%

Transportation By Sea: 50 carriers/160 companies By Rail:5,200 miles of rail By Road:2,285 miles of interstate By Air:27 air cargo carriers With Data:14 fiber optic networks Intellectual Capital By Sea: 50 carriers/160 companies By Rail:5,200 miles of rail By Road:2,285 miles of interstate By Air:27 air cargo carriers With Data:14 fiber optic networks Intellectual Capital

Atlanta: Center of Distribution Source: U. S. Census Under 1 Million 1- 5 Million 5-10 Million Million 21 Million & Up Under 1 Million 1- 5 Million 5-10 Million Million 21 Million & Up Population Atlanta

Regional Distribution Centers Source: U. S. Census Under 1 Million 1- 5 Million 5-10 Million Million 21 Million & Up Under 1 Million 1- 5 Million 5-10 Million Million 21 Million & Up Atlanta E. Pennsylvania Population

Regional Distribution Centers Source: U. S. Census Under 1 Million 1- 5 Million 5-10 Million Million 21 Million & Up Under 1 Million 1- 5 Million 5-10 Million Million 21 Million & Up Atlanta Chicago E. Pennsylvania Population

Regional Distribution Centers Source: U. S. Census Under 1 Million 1- 5 Million 5-10 Million Million 21 Million & Up Under 1 Million 1- 5 Million 5-10 Million Million 21 Million & Up Atlanta Dallas Chicago E. Pennsylvania Population

Regional Distribution Centers Source: U. S. Census Under 1 Million 1- 5 Million 5-10 Million Million 21 Million & Up Under 1 Million 1- 5 Million 5-10 Million Million 21 Million & Up Atlanta Dallas Los Angeles Chicago E. Pennsylvania Population

Developments Impacting Distribution Facilities Governmental Regulations - Trucking regulations - Fire code issues Technological changes -RFID tracking device -Supply-chain management systems Governmental Regulations - Trucking regulations - Fire code issues Technological changes -RFID tracking device -Supply-chain management systems

Conclusion Transportation infrastructure Largest industrial inventory in southeast Trends - Population Growth - Growth in Intermodal Hubs - Governmental changes - Technological advances Transportation infrastructure Largest industrial inventory in southeast Trends - Population Growth - Growth in Intermodal Hubs - Governmental changes - Technological advances

Q & A