INDUSTRIAL MARKET REPORT. 4th Quarter Central Los Angeles Mid-Counties LOCAL EXPERTISE. NATIONAL REACH. WORLD CLASS.

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1 INDUSTRIAL MARKET REPORT 4th Quarter 24 Central Los Angeles Mid-Counties LOCAL EXPERTISE. NATIONAL REACH. WORLD CLASS.

2 4TH QUARTER 24 CENTRAL-LOS ANGELES MID-COUNTIES Annual Review and Prospectus 24 was an outstanding year for industrial real estate. With GDP growing at.% in the third quarter and at 2.6% annually, only now can the national economy reasonably be said to be recovering. Yet, the sector of the economy which has been stealthily roaring with vitality for some time now is commercial real estate. The industrial market of Los Angeles is a case in point. In the fourth quarter, over 3. million square feet of gross absorption was recorded, and over.69 million square feet for the year overall in the Central market alone. Likewise, vacancy levels are now at sub-threepercent-levels from 3.29% in Q3 to 2.48 in Q4, i.e., almost at pre-recessionary levels. For perspective, remember that as measured from 2 to the present, the historical average for vacancy for the Central market is.3%. Tenants, as a result, witnessed less tenant concessions further pressure to the market was the fact that new development was in sparse supply. Combined, a mere 7, 3 thousand square feet was added in the Central and Mid-Counties market. Constricting supply, too, was the unabated trend of older industrial properties being spaces. Unfortunately, this trend was most pronounced in Downtown Los Angeles, as density increased on account of new zoning regulations. Interestingly, and bespeaking the strength of the industrial sector, even as lending standards remained strict, life insurance million range as opposed to their past practice of only to maintain that the US will remain a low interest rate environment till 26 contrary to speculation otherwise. in 2, especially as industrial properties outperformed there is increasing demand for more modern industrial buildings, with distribution buildings outperforming other types (i.e., Flex, R&D, etc.), and as capital is starting construction in 2. The Mid-Counties and Central market maintained their status as the strongest markets nationally. Relative to Q3 24, both submarkets had similar trends with respect to both vacancy and availability: both decreasing. That is, compared to Q3, both the Mid-Counties and Central markets saw decreasing rates of vacancy, from.6% to.% for the Mid-Counties and from 3.29% to 2.48% for the Central market, and decreasing rates of availability from 8.34% to 7.6% for the Mid-Counties and from 6.72% to.6% for the Central Market. 3 \\

3 Market Snapshot LEE & ASSOCIATES \\ INDUSTRIAL MARKET REPORT CENTRAL LOS ANGELES MID COUNTIES RATES AVERAGE LEASE RATES ABSORPTION Vacancy Rates Avg Lease Rates ,2,996 BASE () 3,88,66 % VACANT Q-4 Q2-4 Q3-4 Q4-4 GROSS/ Q-4 Q2-4 Q3-4 Q (%). Downtown LA Commerce Area Vernon Area Mid Counties Downtown LA Commerce Area Vernon Area Mid Counties.6 (%) 7.6,2,34 SALE ACTIVITY () 2,4,89,99 LEASE ACTIVITY () 2,42,33 Q-4 Q2-4 Q3-4 Q4-4 Downtown LA Commerce Area Vernon Area Mid-Counties Q-4 Q2-4 Q3-4 Q4-4 Downtown LA Commerce Area Vernon Area Mid-Counties Vacancy vs Availability CENTRAL BASE Commerce,27,98 Los Angeles 8,673,733 9 Montebello,28, Pico Rivera,299, Vernon 7,34, SELECT STATS (K AND UP) MID-COUNTIES SELECT STATS (K AND UP) SAN GABRIEL VALLEY SELECT STATS (K AND UP) BASE Buena Park 3,933, Cerritos 2,863, La Mirada 2,32, Norwalk 3,237, Santa Fe Springs,93, BASE Azusa 4,98, 8 97 Baldwin Park 3,62,47 83 Covina 2,26, Diamond Bar 2, Duarte,92, El Monte 8,88, Industry 79,362, TERMINOLOGY RATE: The percentage of all space being marketed for sale or lease at a period of time in a given area. RATE: The percentage of all unoccupied space being marketed for sale or lease at a period of time in a given area. GROSS LEASE (GRS): A lease agreement in which the stated rent being paid to the landlord includes property taxes and property insurance. GROSS ABSORPTION: Total number of properties leased or sold for occupancy at a period of time in a given area. TRIPLE NET LEASE (NNN): A lease agreement whereby the tenant is obligated to pay for all the operating expenses, i.e. property taxes, property insurance, and facility maintenance. BASE : Square footage of existing and under construction industrial buildings. Irwindale 2,4, Monrovia 2,83, Pomona 8,, South El Monte 7,47, Walnut 3,672, \\

4 Completed Transactions 6,649 LEASED 4 ARDMORE AV SOUTH GATE Jack Cline and Chuck Campbell have leased this 6,64 industrial building on Ardmore Ave in the city of South Gate. The lessor was 4 Ardmore Ave LLC, and the lessee was Meredith Baer Home. LEE & ASSOCIATES \\ INDUSTRIAL MARKET REPORT Availabilities Visit us at to see our complete list of available properties FOR SALE Address Available Listing Agent Malt Ave, Commerce 4,9 J. Bethel 69 S Alameda St, Huntington Park, D. Brandt & J Rinkov,2 SOLD Total Consideration: $,7, 24 DAVIE AVE COMMERCE Tony Naples has sold this,2 industrial building on Davie Ave In Commerce. The seller was and the buyer was. 47,94 SOLD Total Consideration: $6,49, S ANDERSON ST LOS ANGELES Mike Smith and James Halferty have sold this 47,94 industrial building on South Anderson St. in Los Angeles. The seller was Tai Wei Chen and Su-Jone Chen and the buyer was Rexford. 43,8 SOLD Total Consideration: $,, 4-4 TELEGRAPH RD COMMERCE Mollie Dietsch has sold this 43,8 industrial building on Telegraph Rd in Comemrce. The seller was David and Edith Ostrove and the buyer was Slauson Ave, Pico Rivera 96,827 P. Bacci E Slauson Ave, Commerce 9, T. O Loughlin 68 Alcoa Ave, Vernon 6,98 J. Cline Stanford Ave, Los Angeles 48,84 R. Young E st St, Vernon 43,2 D. Cline 242 S Eastern Ave, Commerce 4, J. Rinkov FOR LEASE Address Available Listing Agent 69 Malt Ave, Commerce 4,9 J. Bethel 24 Yates Ave, Commerce 92,32 A. Artukovich & M. Dietsch 43 E Valley Blvd, Los Angeles 8,232 J. Halferty & M. Smith 69 S Alameda St, Huntington Park 7, D. Brandt & J. Rinkov S Greenwood Ave, Montebello 7, P. Bacci 68 Alcoa Ave, Vernon 6,98 J. Cline 84 Slauson Ave, Pico Rivera 6,737 P. Bacci 3-33 Yukov Ave, Hawthorne 2,2 J. Bethel 23 E 7th St, Los Angeles 49,2 M. Smith & R. Young 7 S San Perdo St, Los Angeles 46,778 A. Kazaryan 78 Gage Rd, Montebello 43, P. Bacci & J. Bethel 242 S Eastern Ave, Commerce 4, T. O Loughlin & J. Rinkov \\

5 LEE & ASSOCIATES \\ INDUSTRIAL MARKET REPORT Economic Indicators Lease And Sale Activity * Data through 4th Quarter 24 DOWNTOWN LA,, 4,, 3,, 2,,,, Downtown LA Lease () Sale () * LEASE SALE 3,67,4 3,49,9 3,6,7 2,73, 2,26, COMMERCE AREA Commerce Area 6,, 4,, 2,, Lease () Sale () * 2,739,3,4,33 3,76,428 3,38,99 4,6,968 DOW JONES INDUSTRIAL AVERAGE 2, 8, 6, 4, 2,, 8, 6, 4, 2, Dow Jones Ind. Avg CRUDE OIL PRICES (USD/BBL) Crude Oil Prices (usd/bbl) ,428 2,77 2 2, , 23 6, , ,942,333 2,9,99 3,7,92 4,734,63 2,4,77 9,77 637,64 2,,977,3,33,8,864 U.S. YR TREASURY RATES VERNON AREA 4,, 3,, 2,,,, Vernon Area Lease () Sale () ,38,983 2,3,84 2,86,96 2,48,,489,263,8,82,86,68,66,863 72,69 736,994 MID-COUNTIES Mid-Counties 8,, 6,, 4,, 2,, Lease () Sale () ,6,8 6,29,44 4,89,427 7,92,9 7,66,39,48,84 2,2,88 2,444,94 2,2,28 2,77, U.S. UNEMPLOYMENT RATE U.S. yr Treasury Rates US Unemployment Rate \\

6 LOCAL EXPERTISE. NATIONAL REACH. WORLD CLASS. LEE & ASSOCIATES - COMMERCE Citadel Drive Suite 4 City of Commerce, CA 94 P: F: Corporate ID# Agents COMMERCE Anita Artukovich Matt Artukovich Peter Bacci David Brandt Chuck Campbell Doug Cline Jack Cline Tim Cronin Mollie Shea Dietsch Jim Halferty Jeff Hubbard Armen Kazaryan Jim Kinetz Edward Lee Hovik Mirzoyan Tony Naples Tom O Loughlin Craig Phillips Jeffrey Rinkov Mike Smith Michael Tsaparian Leo Vusich Tim Wetzel Ron Young LEE & ASSOCIATES - INDUSTRY 38 Crossroads Pkwy North Suite 3 City of Industry, CA 9746 P: F: Corporate ID# 2429 INDUSTRY Travis Allan Jeff Bethel Patrick Bogan Chris Bonney Michael Brent Kevin Ching Steve Coulter Marc DiGennaro Adam Dzierzynski Kent Ebinger John Espinosa Henry Hong Jeff Huberman Scott Kroman Chris Larimore Michael Lee Stacy Martin Vincent Molitor Tai Ngo Jason Woods Justin Chiang MARKET MAP Central LA Mid-Counties Office Locations P a c i f i c San Gabriel Valley O c e a n N Hollywood Burbank Downtown LA Torrance LEE & ASSOCIATES LOCATIONS Vernon INDUSTRY COMMERCE 6 7 Santa Hacienda Heights Fe Springs 7 Brea La Mirada Inglewood Huntington Park Long Beach Norwalk Duarte El Monte 39 Glendora Pomona Diamond Bar 9 3 Claremont Rancho Cucamonga CALIFORNIA Anaheim, Antelope Valley, Calabasas, Carlsbad, City of Industry, City of Commerce, Irvine, Long Beach, Los Angeles, Murrieta, Newport Beach, Oakland, Ontario, Orange, Palmdale, Palm Desert, Pleasanton, Riverside, San Diego, San Luis Obispo, Santa Barbara, Santa Maria, Santa Monica, Sherman Oaks, Stockton, Temecula, Victorville OTHER LOCATIONS Cleveland, OH Long Island-Queens, NY Chesapeake Region, MD Charleston-Dwntn, SC Edison, NJ Orlando, FL Charleston, SC Fort Myers, FL Kansas City, KS Manhattan, NY Greenville, SC Atlanta, GA Greenwood, IN Indianapolis, IN Elmwood Park, NJ Boise, ID Dallas, TX Madison, WI Reno, The information contained herein has been furnished from sources which we deem reliable, but for which we assume no for use by Lee & Associates clients and professionals and all right to the material are reserved and cannot be reproduced without prior written permission of Lee & Associates. Ontario