Industrial Market Vacancy Rate YearYear End Vacancy % % % % Source: Karnes Industrial Report

Warehouse Completions YearSquare Feet , , , ,189,000 (* 1,265,000 under construction) Source: Karnes Industrial Report

Industrial Net Absorption YearSquare Feet 2003(448,000) 20041,610, , ,329,622 Source: Karnes Industrial Report

2007 Investment Sale Activity Very active market in 2006 New players in market  Carlson Real Estate  EastGroup Properties  Greenstein  DCT Industrial Trust and more CAP rates at historic lows (below 7 in some cases)

2007 Industrial Forecast Predictions Continued user demand  Organic  New to market Flat CAP rates More development outside of Mecklenburg county  Land more difficult to find Vacancy rates rising slightly Still a disconnect between rising construction cost versus rental rates