OVERVIEW Year-EndingGDP % ChangeYE UnemploymentVacancy Average Lease Rate SF Delivered to Market Full Year Net Absorption Under Construction Charlotte %7.50%6.40%$ ,3272,037,500678,956 Charlotte – %5.40%6.03%$5.401,842,9942,255,4861,428, %-28.00%-5.78%7.57%107.70%10.70%110.37% National – %6.70%11.30%$5.7466,100,000233,000,00085,000,000 National %5.60%10.30%$ ,200,000225,800,000140,000, %-16.42%-8.85%4.80%77.31%-3.09%64.71% *Special thanks to Anne Johnson and David Hartzell of CBRE for providing these statistics.

PAST PROBLEMS

PRESENT “GOOD TIMES” FOCUS ON NEW SUB-MARKETS – CABARRUS AND YORK COUNTIES ARE EXPERIENCING SPECULATIVE DEVELOPMENT CONSTRUCTION LEVELS ARE BELOW HISTORICAL NORMS DUE TO: PRICE RELATIVE TO RENT RATES, LACK OF AVAILABLE/ ENTITLED SITES, CONSTRUCTION FINANCING, AND “MEDIOCRE” DEMAND THEME OF “BIGGER IS BETTER” FOR THE BULK OF NEW SPECULATIVE CONSTRUCTION HOWEVER, 2014 NET ABSORPTION WAS COMPRISED MAINLY OF SMALL-TO-MEDIUM SIZED DEALS RENT RATES INCREASED 15% IN CHARLOTTE OVER THE 24 MONTH PERIOD FROM 1/1/2013 TO 12/31/2014 FROTHY INVESTMENT SALES ENVIRONMENT FAVORS SELLERS OVER BUYERS KEYED BY EXTENDED LOW INTEREST RATES TRIGGERED THROUGH THE WORLD-WIDE FAD OF QUANTITATIVE EASING LOW RETURN ENVIRONMENTS ARE DRIVING MORE CAPITAL TO RE IN THE US, WHICH HAS TRICKLED DOWN FROM 1 ST TIER MARKETS TO CHARLOTTE’S 2 ND TIER MARKET STATUS

FUTURE TRENDS?