Columbia Corridor Association

April 25, 2007

Columbia Corridor Association

April 25, 2007

•Don Ossey, SIORCapacity Commercial Group

•Mark Childs, SIORIntegrated Corporate Property Services

•Paul Breuer, SIORColliers International

•Don Ossey, SIORCapacity Commercial Group

•Mark Childs, SIORIntegrated Corporate Property Services

•Paul Breuer, SIORColliers International

Market ConditionsMarket Conditions

2007 Columbia Corridor Market:

Total Inventory: 33,310,200 SF

Vacancy: 2,221,122 SF

Absorption: 351,706 SF

Construction Starts: 956,842 SF

2007 Columbia Corridor Market:

Total Inventory: 33,310,200 SF

Vacancy: 2,221,122 SF

Absorption: 351,706 SF

Construction Starts: 956,842 SF

Vacancy RatesVacancy Rates

Absorption RatesAbsorption Rates

Construction StartsConstruction Starts

Construction CostsConstruction Costs

Construction CostsConstruction Costs

Land SalesLand Sales

Year Buyer Address Size Price/SF

2004 Miller Paint 12715 NE Marx 2.09 AC $4.12

2004 Oregon Transfer 7828 N. Leadbetter 13.52 AC $4.75

2005 Navistar NE 223rd 10.00 AC $5.37

2006 Knight Trans. NE 230th & Sandy 6.64 AC $5.49

2007 Redside NE 201st & San Rafael 16.00 AC $5.25

2007 DPI NE 185th & Portal 13.60 AC $5.75

Year Buyer Address Size Price/SF

2004 Miller Paint 12715 NE Marx 2.09 AC $4.12

2004 Oregon Transfer 7828 N. Leadbetter 13.52 AC $4.75

2005 Navistar NE 223rd 10.00 AC $5.37

2006 Knight Trans. NE 230th & Sandy 6.64 AC $5.49

2007 Redside NE 201st & San Rafael 16.00 AC $5.25

2007 DPI NE 185th & Portal 13.60 AC $5.75

Land SalesLand Sales

2.09

AC

13.5

2 A

C

10.0

0 A

C

6.64

AC

8.15

AC

16.0

0 A

C

13.6

0 A

C

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

Pri

ce P

er S

qu

are

Fo

ot

2004 2004 2005 2005 2006 2007 2007

Land SalesLand Sales

Development CostsDevelopment Costs

Development CostsDevelopment Costs

Significant Lease TransactionSignificant Lease TransactionBybee Lake Logistics Center, Phase I7828 N. Leadbetter

Tenant: Moran Foods

Landlord: Capstone Partners

Size: 182,000 SF

Bybee Lake Logistics Center, Phase I7828 N. Leadbetter

Tenant: Moran Foods

Landlord: Capstone Partners

Size: 182,000 SF

Significant Lease TransactionSignificant Lease TransactionRiverside Parkway North18225 NE Riverside Parkway

Tenant: Nautilus

Landlord: Panattoni

Size: 250,100 SF

Riverside Parkway North18225 NE Riverside Parkway

Tenant: Nautilus

Landlord: Panattoni

Size: 250,100 SF

Significant Lease TransactionSignificant Lease TransactionTownsend Business ParkNE Sandy Boulevard

Tenant: Navistar

Landlord: Panattoni

Size: 210,000 SF

Townsend Business ParkNE Sandy Boulevard

Tenant: Navistar

Landlord: Panattoni

Size: 210,000 SF

Transactions in ProgressTransactions in Progress

Estimated Shell Rates:

Rivergate: 136,000 SF$0.36/SF

Gresham: 131,000 SF$0.40/SF

Rivergate / Airport Way: 300,000 SF $0.35/SF

Estimated Shell Rates:

Rivergate: 136,000 SF$0.36/SF

Gresham: 131,000 SF$0.40/SF

Rivergate / Airport Way: 300,000 SF $0.35/SF

New DevelopmentNew DevelopmentProject Planned SF Expected SF

CalWest Industrial Properties 409,500 409,500

DP Partners 262,640 262,640

Weston 366,000 66,000

ProLogis 329,305 83,077

Trammell / Kennedy 2,600,000 570,000

McMorgan & Company 502,000 259,000

ING/Trammell Crow 279,282 279,282

OPUS Development 303,000 303,000

Birtcher Development 397,905 397,905

5,449,632 2,630,404

Project Planned SF Expected SF

CalWest Industrial Properties 409,500 409,500

DP Partners 262,640 262,640

Weston 366,000 66,000

ProLogis 329,305 83,077

Trammell / Kennedy 2,600,000 570,000

McMorgan & Company 502,000 259,000

ING/Trammell Crow 279,282 279,282

OPUS Development 303,000 303,000

Birtcher Development 397,905 397,905

5,449,632 2,630,404

New DevelopmentNew Development

Historical Deliveries

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2004 2005 2006

Other

Columbia Corridor

New DevelopmentNew Development

Historical & Expected Deliveries

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

2004 2005 2006 2007

Other

Columbia Corridor

ProjectionsProjections

Economic ConditionsEconomic Conditions

Factors Impacting Future:

Interest Rates

Global Economy

Energy

Consumer Demand

Factors Impacting Future:

Interest Rates

Global Economy

Energy

Consumer Demand

Political EnvironmentPolitical Environment

Factors Impacting Future:

Attitude Toward Business

Investment in Infrastructure

Factors Impacting Future:

Attitude Toward Business

Investment in Infrastructure

Window of OpportunityWindow of Opportunity

Current Vacancy: 2,221,122 SF

Expected 2007 Construction: 2,630,404 SF

Potential Development: 3,000,000 SF

Total 7,851,526 SF

At a projected absorption rate of approximately 2,000,000 SF per year, it is estimated that a 4-5 year supply of land and buildings currently exists.

Current Vacancy: 2,221,122 SF

Expected 2007 Construction: 2,630,404 SF

Potential Development: 3,000,000 SF

Total 7,851,526 SF

At a projected absorption rate of approximately 2,000,000 SF per year, it is estimated that a 4-5 year supply of land and buildings currently exists.

Thank youThank you

•Don Ossey, SIORCapacity Commercial Group

•Mark Childs, SIORIntegrated Corporate Property Services

•Paul Breuer, SIORColliers International

•Don Ossey, SIORCapacity Commercial Group

•Mark Childs, SIORIntegrated Corporate Property Services

•Paul Breuer, SIORColliers International