JUSTIN LAMONTAGNE, CCIM 10 Dana Street Portland, ME 04101 207?773-7100 IThe Dunham Group Commercial Real Estate Services, Worldwide. Welcome & Thanks Presentation Outline  A Look Back at 2015  Trends & Anecdotes  Significant Transactions  Current Conditions  2016 Industrial Market Survey  National & Regional Report  Report Card: 2015 Forecast  Forecast 2016  Significant Vacancies  Predictions & Analysis of Data A Look Back at 2015 I The Dunham Group Commercial Real Estate Services, Worldwide. A Look Back at 2015… Local Trends & Anecdotes How Low Can They Go?  2014’s “stunning lack of inventory” and vacancy rates shrink further  Conversion to retail/showroom strains industrial zones (Bayside) Local & Organic Growth Continue to Drive Sector  Breweries remain active  Medical Marijuana continued impact & future?  Small-medium sized businesses & deals (5-10K SF) Tight Inventory Inhibits Growth  Safelite Auto Glass, Commercial Delivery Services, PODS Local Trends & Anecdotes Have We “Recovered”? YES    Multiple offer situations National data and resources say “yes” Record setting pricing Speculative Buying…not Building      60 Anthony Avenue, Augusta 17 Westfield Street, Portland 235 Presumpscot Street, Portland 216 Riverside Industrial Parkway, Portland 416 Warren Avenue, Portland (spec building) Local Trends & Anecdotes Land Interest & Sales Continue     Saco’s Millbrook Park HSE Gould search Digital Drive, Biddeford Numerous “build-to-suit” options today Investment Properties in High Demand      28 Pond View Drive, Scarborough 26 Parkway Drive, Scarborough 55 Hutcherson Drive, Gorham 84 Warren Avenue, Westbrook 135 Walton Street, Portland A Look Back at 2015… Significant Sale Transactions 7 Alewive Park Road, Kennebunk - $3,500,000 88,120 SF, Purchased by Kennebunk Savings Bank Owner/User 250 Canco Road, Portland - $2,700,000 68,000± SF, Purchased by City of Portland Owner/User 60 Industrial Park Road, Saco - $1,200,000 23,125± SF, Purchased by John F. Murphy Homes Inc. Owner/User A Look Back at 2015… Significant Sale Transactions 600 County Road - $1,700,000 28,580± SF, Purchased by Lake Creek Properties, LLC (SIGCO) Owner/User Lincoln Mill, Biddeford - $2,500,000 233,001 SF, Purchased by Atlantic Holdings, LLC Hotel Redevelopment X2! 474 Riverside Industrial Parkway, Portland – 11,900± SF Purchased by Albus Properties, LLC $570,000, Investment Purchased by Billdotcom Properties, LLC $650,000, Owner/User A Look Back at 2015… Significant Lease Transactions 80 Anthony Avenue, Augusta – 33,560 SF Leased by Harvey Industries 167 Rumery Road, South Portland – 30,000 SF Leased by Eimskip Logistics Inc. 90 Spencer Drive, Wells – 300,000± SF Renewals Two Lease Renewals by Village Candle & Wasco Products A Look Back at 2015… Significant Lease Transactions 55 Logistics Drive, Auburn – 47,000 SF Leased by CEVA Logistics (FMC) 39 Eisenhower Drive, Westbrook – 23,004 SF Leased by Independent Delivery Service 84 - 86 Industrial Park Road, Saco – 25,340 SF Leased by Cape Seafood Current Conditions I The Dunham Group Commercial Real Estate Services, Worldwide. Greater Portland Industrial Market Survey (see Appendix for detailed breakdown) Total Number of Buildings: 545 Total Market Size: 17,849,282± SF1 Direct Vacancy: 604,266± SF2 Total Vacancy Rate: 3.38% 1 Totals 2 as of December 2015 per NAI The Dunham Group Industrial Market Survey Totals as of December 2015 per New England Commercial Property Exchange The 2016 Industrial Market Survey Greater Portland Vacancy Rates by CityVACANCY RATE BY U1 ?8 Scarborough Saco Westbrook South Portland Portland Biddeford Gorham I The Dunham Group Commercial Real Estate Services, Worldwide. The 2016 Industrial Market Survey Greater Portland Vacancy Rates by Parks Clusters 10County Jetport Riverside Walter Alfrede liveStar Presurnp- Statingi Evergreen Pleasant Sa