1. Industrial Panel Jeff Forsberg, CCIM
Principal - NAI Puget Sound Properties

2. Kent Valley
BELLEVU E
SEATTLE

3. Vacancy % Vacant w/ Sublease Submarket 2017 Total SF Vacant SF
% Vac 3Q, 2017 Sublease SF Total Vacant Space
RENTON
9,125,387
251,748
2.76%
1,375
253,123
2.77%
SEATAC
3,744,615
43,076
1.15%
17,114
60,190
1.61%
TUKWILA
11,836,049
279,185
2.36%
52,881
332,066
2.81%
KENT
48,953,663
1,848,944
3.78%
126,914
1,975,858
4.04%
AUBURN
21,337,612
382,377
1.79%
84,176
466,553
2.19%
SUMNER
17,463,759
548,289
3.14% -
KENT TOTAL
112,461,085
3,353,619
2.98%
282,460
3,636,079
3.23%

4. Vacancy Chart Historical Vacancy Rates Historical Vacancy Rates
10.00%
9.00%
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
Years
Vacancy Rate

5. Lease Comparable Van Doren’s - ProLogis #3
5530 S 226th Street, Kent, WA 98032
TENANT
Washington Shoe Company
BUILDING SIZE
58,217 SF
OFFICE
9,624 SF
SHELL RATE
$0.57
OFFICE ADD-ON
$0.85
EST. NNN
$0.17
CLEAR HEIGHT
26’
DOORS
11 DH, 1 GL
LEASE TERM
63 Months

6. 50,000 - 100,000 SF Class A & B Class A Class B Shell Rate
Average Years
Free Rent
Free Rent Ratio
2008
$0.396
3.93
2.60
0.66
2009
$0.315
3.99
4.50
1.13
2010
$0.324
5.84
4.25
0.73
2011
$0.334
5.95
4.80
0.81
2012
$0.336
5.18
4.05
0.78
2013
$0.352
6.67
2.83
0.42
2014
$0.375
6.28
3.67
0.58
2015
$0.418
6.73
3.90
2016
$0.468
6.03
2.76
0.46
2017
$0.498
6.01
2.23
0.37
Shell Rate
Average Years
Free Rent
Free Rent Ratio
2008
$0.373
5.08
1.00
0.20
2009
$0.339
3.28
1.33
0.41
2010
$0.290
6.20
1.89
0.30
2011
$0.278
5.89
3.00
0.51
2012
$0.309
5.01
3.38
0.67
2013
$0.358
4.77
3.44
0.72
2014
$0.345
6.65
3.33
0.50
2015
6.55
3.80
0.58
2016
$0.433
5.37
1.56
0.29
2017
$0.477
6.43
1.86

7. 50,000 - 100,000 SF Class A & B Shell Rates $0.55 $0.50 $0.45 $0.40
$0.35
$0.30
$0.25
$0.20
Class A Class B

8. Sale Comparable
Van Doren’s 228th - Patterson Bldg S 228th Street, Kent, WA
SELLER
Patterson Investment Company
BUYER
Hill Investment Co.
SALE PRICE
$12,500,000
BUILDING SIZE
80,619 SF
OFFICE
7,497 SF
CAP RATE
4.93%
CLEARANCE
25’-29’
DOORS
15 DH, 2 GL

9. Sale Comparison # Average Investor Owner/User CAP Rate 2008 31 $94.4414 17
6.65%
2009 19
$67.80 9 10
8.92%
2010 20
$69.06 13 7
7.73%
2011 21
$76.27
7.54%
2012 40
$74.87 26
6.52%
2013 33
$84.79 16
6.22%
2014 35
$92.92 30 5
5.96%
2015 24
$106.61 15
5.88%
2016 37
$111.92 11
4.79%
2017 28
$143.12 18
4.96%

10. Sale Comparison Average Price Per SF $160.00 $140.00 $120.00 $100.00
$80.00
$60.00

11. Sale Comparison Size Shell Rate CAP Rate Price 2009 - CLASS A 100,000
$0.328
8.92%
$4,412,556
CLASS A
$0.394
5.88%
$8,040,816
CLASS A
$0.498
4.50%
$13,280,000