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1 NAI Furman,NAME LLC NAIEarle MEMBER Industrial Report Fourth Office Report First QuarterQuarter

2 Upstate Market TRENDS: Vacancy Rate Slight decrease Net Absorption Construction Asking Rents Slight decrease STATISTICS: Number of Buildings...4,54 Market Size (SF)...183,563,742 Overall Vacancy Space (SF)...17,455,253 Overall Vacancy (%)...9.5% Direct Vacancy (SF)...17,159,63 Sublease Vacancy (SF)...295,65 Net Absorption...179,161 Average Asking Rental Rate ($/SF/YR)...$3.1 Fourth Quarter MARKET OVERVIEW By: John Staunton Industrial Division Click here to contact John Staunton The Greenville/Spartanburg Industrial market ended the fourth quarter 211 with a vacancy rate of 9.5%, the lowest vacancy rate since the third quarter of 28. The net absorption total was a positive 179,161 square feet in the fourth quarter. Vacant sublease space remained unchanged in the fourth quarter, ending at 295,65 square feet. Rental rates ended the fourth quarter at $3.1, a slight decrease over the previous quarter. There was 95, square feet (ZF Group) still under construction at the end of the quarter. 11.% 1.5% 1.% 9.5% 9.% $4. $3.5 $3. $2.5 Overall Vacancy (%) 3Q1 4Q1 1Q11 2Q11 3Q11 4Q11 Average Asking Rental Rate 3Q1 4Q1 1Q11 2Q11 3Q11 4Q11 As 212 begins, we are optimistic about the Greenville/Spartanburg Industrial market. Expectations are that market conditions will continue to stabilize and regain some normalcy over the course of the year. We find more national and international businesses are discovering Upstate South Carolina and its business-friendly climate, quality infrastructure and skilled workforce. Top Lease Transactions *NAI Earle Furman transaction Tenant: Address/Building: Size (SF): Submarket: N/A S. Hwy 14 Distribtution Center 8, Highway 14 *Innegra Technologies 1312 Old Stage Road 6, Greenville I-85 *Dare Foods Inc. Commonwealth Distribution Center 65,645 Spartanburg *A&E Engineering, Inc. 85 Suburban Park Drive 4,25 Spartanburg Top Sale Transactions Tenant: Address/Building: Size (SF): Submarket: Price: Graceway Church 917 Asheville Hwy 45,257 Spartanburg $2,6, Image Investments 129 Ridge Road 63,6 Greenville I-85 $2,125, Investor 35 W. Phillips Road 24,25 Highway 14 $1,45, Nemato Composites USA LP 545 N. Blackstock 54, Spartanburg $1,2, NAI Earle Furman, LLC 11 East Washington Street, Suite 4 Greenville SC

3 NAI Earle Furman, LLC Industrial Report Fourth Quarter 211 SUBMARKET/ # BLDGS. TOTAL RBA TOTAL AVAIL. TOTAL VACANT TOTAL NET TOTAL AVERAGE UNDER CLASS (SF) (SF) AVAIL (%) Absorption (SF) RATE ($/SF/YR) CONSTRUCTION (SF) Greenville I ,155,593 2,892, % (31,2) $3.72 Class A 1 771,8 26, % $5.11 Class B ,555,729 1,524,22 6.% 74,476 $3.49 Class C 314 7,841,549 1,162, % (15,676) $3.73 Greenville I ,751,893 2,746, % 65,7 $3.6 Class A 4 1,164,722 78, 67.% $3.95 Class B 81 5,645, , % 65,7 $3.5 Class C 16 4,774,139 1,275, % $3.1 Pelham Road/ 28 5,326,9 93, % (1,55) $4.88 Hwy. 14 Class A 2 3, 7,5 2.% (1,5) $6.43 Class B 6 2,187, , % (1,8) $4.85 Class C 134 2,98, , % (1,8) $4.85 Rt. 29/ Rutherford Rd. 29 7,8,348 1,372, % 15,455 $3.2 Class A 3 14,5 % N/A Class B 44 2,526,28 699, % $3.3 Class C 156 4,982,35 673, % 15,455 $2.97 Travelers Rest 87 3,57, , % 5,2 $2.29 Class A 1 22,8 % N/A Class B 24 1,52,142 67,6.3% $7.5 Class C 53 1,78,26 27, % 5,2 $2.19 West Greenville 51 14,649,545 2,322, % (13,635) $2.94 Class A 4 582, , % N/A Class B 14 4,46,62 472, % 12, $2.58 Class C 394 9,684,538 1,411, % 1,365 $3.47 Anderson/Pickens ,646,133 2,64,812 6.% 88 $2.79 Class A 7 476,16 3,8.8% $4.21 Class B 14 7,882,361 1,139, % (1,1) $2.78 Class C ,62,884 1,461,15 3.4% 338 $2.71 Spartanburg 1,379 7,891,959 1,547, % 136,67 $2.84 Class A 24 5,231,84 362, % 2, $3.44 Class B ,657,291 5,239,15 7.% (3,544) $3.4 Class C ,186,82 4,941, % 12,151 $2.41 Cherokee 74 5,21,68 1,52, % (64,752) $2.69 Class A 4 1,6, , 47.3% $2.83 Class B 41 3,62, , % (43,9) $2.64 Class C 28 1,49, , % (2,852) $2.56 Laurens 61 5,32,81 1,14, % $ , Class A 3 831, , % N/A Class B Class C ,719,278 1,368,23 323, ,324.2% 15.% $2.81 $ ,

4 NAI Earle Furman, LLC Methodology / Definitions / Submarket Map Absorption (Net) The change in occupied space in a given time period. Available Square Footage Net rentable area considered available for lease; excludes sublease space. Average Asking Rental Rate Rental rate as quoted from each building s owner/ management company, For office space, a full service rate was requested; for retail, a triple net rate requested; for industrial, a triple net basis. Travelers Rest Greenville CBD Uptown 15.3 million SF vacant 4.13% vacancy rate Rt. 29/Rutherford Rd. $54.14 SF/YR avg. rental Spartanburg Building Class Class A product is office space of steel and concrete construction, built after 198, quality tenants, excellent amenities & premium rates. Class B product is office space built after 198, fair to good finishes & wide range of tenants. Direct Vacancy Space currently available for lease directly with the landlord or building owner. Market Size Includes all existing and under construction office buildings (office, office condo, office loft, office medical, all classes and all sizes, both multi-tenant and singletenant, including owner-occupied buildings) within each market. Overall Vacancy All unoccupied lease space, either direct or sublease. SF/PSF Square foot/per square foot, used as a unit of measurement. West Greenville Anderson/ Pickens Midtown 4.88 million SF vacant Greenville 4.7% vacancy I-385 rate $37.53 SF/YR avg. rental Greenville I-85 Anderson Downtown 11.3 million SF vacant 4.o% vacancy rate $42.3 SF/YR avg. rental Pelham Rd/Hwy 14 Sublease Arrangement in which a tenant leases rental property to another, and the tenant becomes the landlord to the subtenant. Sublease Space Total square footage being marketed for lease by the tenant. Sublease space is not considered in the overall occupancy or absorption numbers - only direct leases are included. Sublease Vacancy Space currently available in the market for sublease with an existing tenant within a building acting as the landlord. Some of the data in this report has been gathered from third party sources including CoStar Group, Inc. and has not been independently verified by NAI Earle Furman, LLC. NAI Earle Furman, LLC makes no warranties or representations as to the completeness or accuracy thereof. All rents are per SF/per YR unless otherwise noted. Construction is defined as total RBA under construction. The Upstate Market is defined by: Greenville, Anderson, Spartanburg, Cherokee and Pickens counties. All Industrial building types are included, including warehouse, flex / research & development, distribution, manufacturing, industrial showroom, and service buildings, in both single-tenant and multi-tenant buildings, including owner-occupied buildings. NAI Earle Furman, LLC 11 E. Washington Street, Suite 4 Greenville SC

5 Upstate in the News BMW to build new model in Spartanburg County By Liz Segrist Published Jan. 12, 212 BMW said today it plans to hire 3 people in 212 and up to 7 more by 214 as it adds production of a new X4 sports activity vehicle at its Spartanburg County plant. Frank-Peter Arndt, BMW Group board member responsible for production, said the company plans to invest $9 million to prepare the 4 million-square-foot facility for the new model. A timeline for production of the X4 model hasn t been released. BMW Manufacturing Co. President Josef Kerscher said it would take two years to prepare the facility for the new model. No product details could be discussed at this time. This is one reaction to the rising global demand for our BMX X Models, Arndt said. The X4 sports activity vehicle will be the fourth model built at the growing Upstate factory, joining the X3, X5 and X6. Kerscher said the workforce, infrastructure and the Port of Charleston play a major role in the company s continued expansion in the Upstate. BMW is the largest automotive exporter to the non-nafta countries. BMW exports 7% of its products. S.C. State Ports Authority CEO Jim Newsome said he only expects that to continue when the X4 production begins. BMW opened a new assembly line in Spartanburg in 21, leading to dramatic production growth last year from 15, annually to more than 276, vehicles in 211. Additionally, BMW became the top-selling luxury brand in the U.S. last year, as sales of the SAV models built in Spartanburg increased substantially. The X4 is expected to push production at the plant to around 35, annually. In the nearer term, annual production could reach 3, as BMW hires 3 people. BMW has now produced 2 million vehicles in Spartanburg County since launching U.S. production in The automaker drove the 2 millionth vehicle into a crowded room during the news conference today to commemorate the production milestone. Since 1994, the plant has undergone four major expansions and produced six different BMW models and their variants: 318i, Z3, Z4, X5, X6 and X3. Employment has grown from 5 in 1994 to more than 7, today. The plant will employ nearly 7,5 by the end of the year. NAI Earle Furman, LLC 11 E. Washington Street, Suite 4 Greenville SC

6 Upstate in the News Bosch Rexroth Announces Expansion in Greenville County SCCommerce.com Nov 14, 211 Investment expected to create 16 new jobs COLUMBIA, S.C. November 14, 211 Bosch Rexroth Corporation today announced plans to expand its existing hydraulics manufacturing operations in Greenville County. The $8 million investment is expected to generate 16 new jobs over the next five years. We are very pleased to announce this expansion in our Fountain Inn operations, said Berend Bracht, regional president - Americas Bosch Rexroth Corporation. With this investment, our expanded manufacturing campus here will become Bosch Rexroth s primary facility for mobile hydraulics and the business s largest manufacturing facility in the Americas. We will be able to strengthen our business, invest in our facility and associates, and meet the growing demands of our customers due in large part to partnership with our colleagues in the state of South Carolina and Greenville County. Bosch Rexroth will expand its manufacturing operations in Fountain Inn with the addition of a new building and land. The company has purchased the former GlaxoSmithKline building near its current facility, creating a manufacturing campus for its operations in Greenville County. The additions will also create room for the company to grow in the future. We celebrate a great South Carolina partner Bosch Rexroth expanding and creating 16 new jobs in our state. We look forward to a continued successful relationship with this great company, said Gov. Nikki Haley. Since the beginning of the year, South Carolina has recruited more than $3.3 billion in investment and more than 11, new jobs in the manufacturing sector. Our state s manufacturing sector continues to grow, as today s announcement shows. South Carolina has long had a reputation for making things for manufacturing, and Bosch Rexroth s decision to expand in Greenville County builds on that reputation, said Bobby Hitt, Secretary of Commerce. The current operations manufacture a many types of hydraulic pumps and motors used in construction, agriculture, mining, material handling, and oil and gas exploration. The new building will allow them to manufacture higher volumes and eventually different types of hydraulic pumps and motors. In addition to the new building and land, a bridge will be built to connect the two sites. A ravine currently separates the two properties and the bridge will enable the two facilities to operate more efficiently. It says a lot about a community when a respected international company such as Bosch Rexroth decides to make yet another major investment here, commented Butch Kirven, Greenville Area Development Corporation Board director and chairman of Greenville County Council. Greenville County provides the skilled workforce, business-friendly environment and all other necessary attributes to support Bosch s advanced manufacturing initiatives. We re proud to be home to Bosch Rexroth and its approximately 6 associates who work here. The Coordinating Council for Economic Development approved the company for job development credits, which will be available when hiring targets are met. The S.C. Technical College System will provide pre-employment training. The company will begin hiring for the new positions by year end and will receive help in the hiring process from ReadySC. Anyone interested in job opportunities with the company should contact Human Technologies Inc. (HTI) at Bosch Rexroth AG is one of the world s leading specialists in the field of drive and control technologies. Under the brand name of Rexroth the company supplies more than 5, customers with tailored solutions for driving, controlling and moving machinery used in industrial and factory automation as well as in mobile applications. Visit for more information. NAI Earle Furman, LLC 11 E. Washington Street, Suite 4 Greenville SC

7 Upstate in the News Kongsberg Automotive Announces Expansion in Pickens County SCCommerce.com Nov 8, 211 Investment expected to create 3 new jobs COLUMBIA, S.C. November 8, 211 Kongsberg Automotive, a maker of automotive components, today announced plans to expand its existing operation in Pickens County. The $7.3 million investment is expected to generate 3 new jobs. This expansion will help our plant remain competitive and meet increasing customer demand. Pickens County has provided us with an excellent business environment in which to operate. We greatly appreciate the support from state and local officials, said Plant Manager Matt McKinnon. Kongsberg Automotive will manufacture precision parts for the aerospace, truck and automotive industry at its expanded plant in Pickens County. The plant became part of the company through a recent acquisition. The expansion is begin in early 212 and expected to be completed within five years. Today s announcement is a big win for South Carolina and Pickens County in particular, and we celebrate the 3 new jobs Kongsberg will create. Announcements like this show that we are doing the right things to encourage economic development in South Carolina, said Gov. Nikki Haley. This is Pickens County s fifth and largest economic development announcement since June. Kongsberg Automotive was incorporated in Pickens County 1989 as Tevis Machine Products by Earl Tevis, a Pickens County entrepreneur. Tevis sold the company in 1999 to Teleflex. Kongsberg Automotive acquired the Pickens operation in 27. The Palmetto State continues to be a big player in the automotive club. Manufacturing remains an important part of South Carolina s economy and is the greatest source of wealth and job creation. We appreciate Kongsberg Automotive s investment in the Palmetto State, said Bobby Hitt, Secretary of Commerce. Automotive continues to be a leading sector in South Carolina. Commerce has been involved in recruiting more than $2 billion in investment and more than 4, jobs in the automotive-related sector since the beginning of the year. Due to current and projected rapid growth, Kongsberg needed to double the current plant capacity. Given the fact that there was not an appropriate, large enough existing manufacturing facility in Pickens County, Kongsberg considered other locations in both the U.S. and Mexico. However with Confluence Watersports vacating the Bill Masters facility in Easley, county officials moved quickly to introduce Kongsberg to the facility. Kongsberg chose to stay, winning the 3 job expansion in Pickens County. The expansion of Kongsberg Automotive and the creation of new jobs is fantastic news! The skilled workforce, the training available through Tri-County Technical College, the business-friendly community, and many other assets in Pickens County made the decision simple for Kongsberg Automotive. Pickens County is proud to celebrate this announcement looks forward to watching the success of Kongsberg Automotive for many years to come, stated Pickens County Council Chairwoman Jennifer Willis. Kongsberg has been an important part of Pickens County, stated Dr. Ronnie L. Booth, chairman of Alliance Pickens and president of Tri- County Technical College. This announcement is the result of Kongsberg s positioning itself to take advantage of new opportunities in the world-wide market for their products. Most new jobs are created by existing industry and we see yet another example of that today. We have a wide variety of challenging and rewarding positions that will become available in the near future. We look forward to partnering with the people of Pickens County to get those jobs filled, said Kongsberg Human Resources Manager Candace Moore. The company will begin hiring for the new positions in January 212. Anyone interested in job opportunities with the company should contact Liberty One Stop at that time. Kongsberg Automotive develops, manufactures and markets systems for gearshift, clutch actuation, seat comfort, stabilizing rods, couplings and components. For more information about Kongsberg Automotive, please visit NAI Earle Furman, LLC 11 E. Washington Street, Suite 4 Greenville SC

8 Contact Us For more information on the Upstate Industrial market please contact one of our specialists: John Baldwin, CCIM Glenn Batson Ford Borders, SIOR Principal & J. Earle Furman, Jr., SIOR Chairman & -in-charge Hunter Garrett, CCIM, SIOR Principal & Jon Good, SIOR CEO & Michael Greer, CCIM, SIOR Grice Hunt John Powell, CCIM John Staunton NAI Earle Furman, LLC 11 E. Washington Street, Suite 4 Greenville SC

9 Additional Resources Complete listings of NAI Earle Furman s available properties The Greenville Area Development Corporation (GADC) is dedicated to the growth and prosperity of Greenville County, SC. Since its founding in 21, GADC efforts have resulted in the creation of nearly 1, new jobs and more than $2 billion in capital investment in Greenville County. The organization s continued successes are demonstrated by the innovative, dynamic, and inviting nature of our community. Formed in 2, the Upstate South Carolina Alliance is a public/private regional economic development organization designed to market the dynamic 1-county Upstate region to the world. The 1 counties of the Alliance represent the commerce-rich northwestern corner of South Carolina - The Greater Greenville Chamber at its core is dedicated to promoting quality development of Upstate South Carolina through managed growth, service to members and the public, and a community-wide approach to issues shaping the region's future. - Provides information on trade, grants, rural development, and recycling. Includes databases of community profiles, labor market information, etc South Carolina's Information Highway is the largest directory of South Carolina information on the Internet. - The South Carolina Power Team promotes industrial sites & industrial buildings in South Carolina and the state's unique advantages for industry. - Official website of the City of Greenville Official website of Spartanburg County government Official website of Greenville County government - Official website of Anderson county government - Official website of Cherokee county government NAI Earle Furman, LLC 11 E. Washington Street, Suite 4 Greenville SC

12.0% 11.5% 11.0% 10.5% 10.0% 9.5% 9.0% $15.00 $14.50 $14.00 $13.50 $13.00

12.0% 11.5% 11.0% 10.5% 10.0% 9.5% 9.0% $15.00 $14.50 $14.00 $13.50 $13.00 Mid 2012 UPSTATE, SOUTH CAROLINA OFFICE MARKET REPORT LOCAL UPSTATE ECONOMY Population...1,375,759 Households...537,556 Median Age......38.3 Labor Force...640,411 Unemployed...57,015 Unemployment Rate...8.9%