Fall 2008 Market Update

Current Market: The short version is: The dull national economy continues to influence our local market with vacancy is at an all time high at 12.75%, leasing activity is down and new speculative construction has ground to a halt. While asking rates on new space have maintained level, firms moving into the area are finding excellent deals when developers have competed for solid, credit worthy tenants. Some submarkets have extremely high vacancy rates while others are more in balance. The I-80 east corridor, for example has a 25% vacancy, while the Stead submarket is slightly over 12%. Either of these markets provide excellent buying opportunities for big box tenants. There is decent big box market activity currently, with firms committing to space at very attractive pricing. The industrial portfolio investors are patient and we are not anticipating market pricing dipping any lower than they already are now.