1. Atlanta Industrial Market Second Quarter 2004 Atlanta Industrial Market Second Quarter 2004

2. 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

3. 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

4. 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

5. Market Inventory: 1995-2004 296 438 Total Inventory 11.9% 18.6% Vacancy In Millions

6. Numbers total 4 quarters to end of current quarter Absorption and Activity Activity 39.0 15.3 Absorption 4.0 34.2 In Millions

7. 26.6 69.8 Total Used Space 8.8 11.7 New Space New/Used Space Availability

8. Numbers total 4 quarters to end of current quarter New Construction: 1995-2004 13.2 7.2 New Construction Build-to-Suit 3.4 4.0 In Millions

9. Deals Completed 45 98 208 37 20 1425 Under 19,999 SF 20,000 - 39,999 SF 40,000 - 59,999 SF 60,000 - 79,999 SF 80,000 - 99,999 SF 100,000 & Up Numbers total 4 quarters to end of current quarter

10. 1.8 5.7 4.7 2.4 12.8 9.6 Square Feet Leased Under 19,999 SF 20,000 - 39,999 SF 40,000 - 59,999 SF 60,000 - 79,999 SF 80,000 - 99,999 SF 100,000 & Up Numbers total 4 quarters to end of current quarter

11. 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

12. 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

13. 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%

14. 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%

15. 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

16. Atlanta: Center of Distribution Source: U. S. Census Under 1 Million 1- 5 Million 5-10 Million 10-20 Million 21 Million & Up Under 1 Million 1- 5 Million 5-10 Million 10-20 Million 21 Million & Up Population Atlanta

17. Regional Distribution Centers Source: U. S. Census Under 1 Million 1- 5 Million 5-10 Million 10-20 Million 21 Million & Up Under 1 Million 1- 5 Million 5-10 Million 10-20 Million 21 Million & Up Atlanta E. Pennsylvania Population

18. Regional Distribution Centers Source: U. S. Census Under 1 Million 1- 5 Million 5-10 Million 10-20 Million 21 Million & Up Under 1 Million 1- 5 Million 5-10 Million 10-20 Million 21 Million & Up Atlanta Chicago E. Pennsylvania Population

19. Regional Distribution Centers Source: U. S. Census Under 1 Million 1- 5 Million 5-10 Million 10-20 Million 21 Million & Up Under 1 Million 1- 5 Million 5-10 Million 10-20 Million 21 Million & Up Atlanta Dallas Chicago E. Pennsylvania Population

20. Regional Distribution Centers Source: U. S. Census Under 1 Million 1- 5 Million 5-10 Million 10-20 Million 21 Million & Up Under 1 Million 1- 5 Million 5-10 Million 10-20 Million 21 Million & Up Atlanta Dallas Los Angeles Chicago E. Pennsylvania Population

21. 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

22. 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

23. Q & A