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2015-2016 Annual Market Study

Published by jkitchens, 2016-07-06 11:33:18

Description: The Bradley Company Annual Commercial Real Estate Market Study! Learn valuable insights in changing markets and make informed commercial real estate decisions with the highest quality information available.

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23RD COMMERCIAL REAL ESTATE2015-2016 MARKET STUDY CENTRAL INDIANA NORTH CENTRAL INDIANA NORTHEAST INDIANA NORTHWEST INDIANA WEST MICHIGAN

CECNENTRTARLALININDDIAINANA A MoMntocnatlcmalmNNOORTRHTHCECNENTRTARLALININDDIAINANA ANNOORTRHTEHAESATSTININDDIAINANA A MuMskuesgkoengon KeKntent OtOtatwtaawa IonIioaniaNNOORTRHTWHWESETSTININDDIAINANA A AllAegllaengan BaBrrayrry EaEtoantonWWESETSTMMICIHCIHGIAGNAN VaVnaBnuBreunren CaClhaolhuonun KaKlaamlaamzoaozoo BrBanrcahnch LaLkaeke MiMchicighiagnan CaCssass St.SJt.oJseopsehph BeBrreirernien LaLPaoPrtoerte St.SJt.oJseopsehph ElkEhlkahrtart LaLGarGanragnege SteSutebuebnen PoPrtoerrter NoNboleble DeDKeaKlbalb LaLkaeke MaMrsahrashllall StaSrtkaerke KoKscoisucsikuosko PuPlauslkaiski FuFltuolnton WWhithleityley AlAlelnlenNeNwetowntonJasJpaesrper HunHtuinngttinongton WhWitheite CaCssass WaWbasbhash AdAadmasms WWellsells BeBnteonnton CaCrraorlrloll MiMamiaimi HoHwoawrdard GrGanrtant BlaBcklafocrkdford WaWrraernren TipTpipecpaencoaenoe JayJay CliCnltionnton TipTtiopnton DeDlaewlaawreare RaRndanoldpohlph MaMdiasdoinson FoFunoutanitnaiMn oMntognotmgoemryery BoBoonoene HaHmaimltoilntonVermillion HeHnreynry WaWynaeyne Vermillion PaPrkaerke HeHndenridcrkiscksMaMriaornionHaHnacnockock VigVoigo PuPtnuatmnam RuRshush FaFyeatytetteUnUionnion ClaCylay MoMrgoargnanJoJhonhsonnsonShSehlbeylby OwOewn en FraFnrkanliknlin DeDcaetcuartur BaBrtahrotlhoomloemwew BrBowronwn MoMnrooneroe/co/cmopmapnayn/byr/abdraledyle-cyo-cmopmapnayny @@brabdraledyle_yc_ocmopmapnayny /br/abdraledylceoycmopmapnaynCyRCERE @@brabdraledylceoycmopmapnayny

TABLE OF CONTENTS PRESIDENT’S LETTER CENTRAL INDIANA02 04 NORTH CENTRAL INDIANA NORTHEAST INDIANA14 38 NORTHWEST INDIANA WEST MICHIGAN58 74 SERVICES & PROFESSIONALS94 RESEARCH | ANALYSIS LAYOUT | DESIGN STEVEN HEATHERLY JONATHAN KITCHENS [email protected] [email protected] GAGE HUDAK MICHELLE STOLLER [email protected] [email protected] MARY KORSON [email protected]

PRESIDENT’S LETTER With growth comes opportunity. In 2015, the Bradley team strengthened our ability to innovate and evolve by coupling an expanded geographic footprint with a depth of new talent. Collectively, these new resources further establish Bradley Company ȱȱȱȱȱȱȱȱȱ ǯȱȱȱȱ ȱȱĴȱ create value for our clients as we service the full spectrum of their real estate needs. ȱȱ¡ȱȱŘŖŗśȱȱȱȱȱȱȱĜȱȱ ȱ as the addition of senior leadership talent in the commercial real estate industry. These professionals bring a wealth of local to global corporate real estate expertise to further leverage the Bradley platform through every phase of the real estate investment or occupancy cycle.ȱȱȱȱěȱȱ¢ȱȱ ȱȱ¢ǰȱȱ ȱȱȱȱȱȱȱestatecommunity and our sponsors who are recognized herein, we are pleased to present our 23rd annual Market Study. In thepages to follow, we will share our in-depth assessment of the past year, as well as our forecast of how local and regionalcommercial real estate may perform through the remainder of 2016.ȱȱ¢ȱȱȱȱȱȱ¢ȱȱȱȱȱěȱȱȱȱǯȱȱȱȱȱȱȱȱȱǰȱěȱȱȱ¢ȱȱ¢ȱȱȱ ȱbusiness opportunities, benchmark and evaluate success, as well as pinpoint challenges that our clients face. We believethis study has become an increasingly valuable resource within our region over the past 23 years as many of our clientsnow make decisions based on the data we present in this body of work.In the past year, we strengthened our commitment to our clients and regional partners by undertaking a marketȱȱȱȱ¢ȱęȱȱȱ ȱǯȱ¢ȱȱǰȱ ȱȱȱȱȱȱȱregions we cover which will provide an even more thorough analysis on real estate econometrics. This project is as¡ȱȱȱȱȱȱ ȱȱȱȱȱȱȬ¢ȱěǯȱȱȱǰȱȱ¢ȱȱȱȱ ȱȱȱȱȱȱȱĚ ȱȱcommercial real estate investment product, while at the same time elevating certain classes and categories of investmentproduct as well as smaller metropolitan markets. In December 2015 the Federal Reserve Board made the long overduedecision, in our opinion, to increase interest rates by 25 basis points. More recently, the reality of a protracted low interestrate environment is beginning to set in. Owners of long term real estate are moving to lock in these low rates for longerȱ ȱȱȱȱȱȱęȱ ȱȱ ȱĚȱǯNationally, consumer sentiment peaked over a year ago and has been waning. As the marketplace continues to growȱȱȱǰȱ ȱȱȱȱȱȱȱęǰȱȱ¢ȱȱactivity across all core lines of business. Across many of the regions we cover, the industrial landscape continues to grow,with some segments outpacing others, driving falling vacancy rates with increased absorption and new developmentannouncements by both existing and new companies. This trend has led to industrial activity in newer buildingsȱȱȱǯȱȱȱȱȱȱ¢ȱȱȱȱęȱȱȱ ȱmanufacturing and warehouse companies as well as companies who are interested in locating within our markets.2

PRESIDENT’S LETTERWith an ever-evolving retail landscape, our region continues to see national retailers both enter and exit the marketplaceas concepts evolve or fade, where much of the change is seen in smaller footprints and more urban oriented formats.On a national scale, the brick and mortar retail marketplace has seen challenged year over year sales growth whileE-Commerce continues to gain more traction each year. Despite indications from the national retail landscape, ourmarkets have seen steady retail investment and new construction announcements as Midwestern secondary andtertiary markets lag the coasts and major metros. Across all regions we serve, new retail projects have been proposedȱȱ ¢ǯȱ¢ǰȱȱȱȱȱȱ¢ǰȱȱȱȱĜȱǰȱȱȱȱȱȱȱȱęȱȱȱ¢ȱȱȱȱǯȱȱȱ·ȱȱ ȱȱȱȱȱrepositioning of stronger brick and mortar retailers for competitive purposes has contributed to the need for new retailconstruction.Overall, real estate markets continue to gain traction as the economy slowly stabilizes. In North Central Indiana, leadingsectors of manufacturing business such as the RV industry continue to pave the way for economic growth. Other newhigh tech service and manufacturing opportunities, such as the pending opening of the Notre Dame turbomachineryfacility, demonstrate great potential for future economic development. In Northwest Indiana, industrial expansionsand announcements are continuing to grow at an accelerated rate as businesses continue to move over the state line.Northeast Indiana has emerged from the recovery phase into a stable growth mode which caused over 2.8 million squarefeet of industrial space to be built in 2015. West Michigan is seeing businesses make large capital investments. The $5ȱȱȱȱ ȱȱŜŖŖǰŖŖŖȱȱȱȱĜȱȱȱȱȱȱȱǯȱ ¢ǰȱȱȱ ȱȱȱ ȱȱȱȱȱ¢ȱȱȱ¢ȱĴȱȱȱȱȱȱȱ¢ǯȱȱęȱȱ¢ȱ ȱęȱȱŘřȱȱȱȱȱ¢ȱȱȱȱ¢ȱȱȱȱǯȱȱyou wish to further engage on any of the data and information contained herein, please do not hesitate to reach out to ourteam of professionals. We look forward to a prosperous year for all!Bradley J. Toothaker, CPM, SIORPresident & CEO 3

CENTRAL INDIANACentral Indiana is formed around the Indianapolis Metropolitan Statistical Area (MSA). The Indianapolis MSA iscomprised of 9 counties totaling 3,513.8 square miles. The City of Indianapolis is the twelfth-largest city in the UnitedStates and makes up over 44 percent of the population in Central Indiana. Indianapolis’ central location continues tobe an important transportation and distribution centersince the nineteenth century. Over the past few decades,Indianapolis has established itself as a sporting center by Clinton Tiptonconstructing major athletic and visitor facilities, and is home Delawareto the famous Indianapolis 500 motor race. Madison Montgomery Boone Hamilton Henry Hendricks Marion Hancock Putnam Shelby Rush Owen Decatur Morgan Johnson Brown Bartholomew Monroe DEMOGRAPHICS BY COUNTY **2015 *2014 *Feb. 2016 Labor Unemployment Population Households Median Household Force 1,967,168 Income Rate 969,398Indianapolis MSA 761,769 $51,452 4.9% *STATS Indiana **ESRI BAO > Montage on Mass > Opus Group4

Activity in modern bulk warehouse/distribution space continues to be an important factor in the industrial market for Indianapolis.CENTRALINDIANA | INDUSTRIALINDIANAPOLISThe Indianapolis MSA industrial inventory is ȱȱȱęȱȱȱȬȱȱapproximately 318 million square feet. Modern bulk park with over 4.5 million square feet of commerce anddistribution is the primary driver of the industrial market bulk distribution space. Major tenants include Amazon,and makes up one-third of the Indianapolis inventory. ǰȱĵǰȱǰȱȱǰȱȱȱ¢ǯȱIndianapolis is home to the world’s second largest FedExhub, with 4,000 employees and 2 million square feet of real Vacancy Ratesestate. ¢ȱęȱ ȱȱȱȱ¢ȱǰȱ¢ȱPark 100, located on the northwest side of Indianapolis due to modern bulk warehouse space and speculativenear Interstate 465 at 71st Street, is the premier business development being absorbed. With the vacancy rate aroundpark in Indianapolis. The park consists of over 11 million 7.3 percent, we expect to see a reduction in the amount ofsquare feet of rentable space and houses major tenants like new speculative development throughout 2016.Person Education Inc., Federal-Mogul Corp., andBaker & Taylor Marketing. Asking Rates> Fashion Mall at Keystone AmeriPlex at Indianapolis is a Indianapolis asking rates for industrial space were slightly 1,500-acre business park located down in 2015 in comparison to previous years. Part of the ȱȱȱĴȱȱȱȱȱȱȱ 10 minutes from downtown ȱĚ¡ȱȱȱǯȱȱȱȱȱ warehouse space is around $3.28/square foot, triple-net Indianapolis. The Purdue (NNN). Flex space rates are asking $8.74/square foot NNN, while manufacturing space is around $5.25 NNN. Research Park and World Connect are two major parks that exist within AmeriPlex. The Purdue Research Park provides businesses with the latest in advanced infrastructure, housing 70 to75 companies. Major tenants include TerraSite Development, Scale Computing, CoreTech Revolution, and Matrix Sigma. WorldConnect at AmeriPlex is situated on 205 acresand contains over 3 million square feet ofmodern logistics facilities. Major tenants includePilot Air Freight, Sentry Logistics, and NewEgg. 5

CENTRAL INDIANA | INDUSTRIALNotable TransactionsSale CITY ȱ ȱ Ȧ ȱ Indianapolis 128,000 $10,304,000 $80.50 Q2 109,900 $5,000,000 $45.50 Q3 7950 Alison Ave. Plainfield 147,000 $4,882,687 $33.22 Q1 1570 Perry Rd. Indianapolis 90,314 $2,700,000 $29.90 Q4 8180 W. 10th St. Indianapolis 1940 W. Oliver Ave.Lease CITY ȱ ȱ ȱ ȱ Plainfield 450,738 450,738 Q2 Integrated 9431 AllPoints Pkwy. Plainfield 450,000 450,000 Distribution Q1 Plainfield 316,800 853,296 Q2 2450 Stanley Rd. Indianapolis 262,640 262,640 Services Q3 250 Airtech Pkwy. Ozburn-Hessey 4350 Sam Jones Expwy. Logistics Hanzo Logistics International PaperGrowth & DevelopmentBecknell Industrial LLC constructed two new industrial The Opus Groupȱȱȱȱȱȱbuildings at 4750 Indianapolis Road in the Eagle Creek speculative warehouse building near the IndianapolisȱǯȱȱęȱřŘřǰŖŖŖȬȬȱȱ ȱǯȱȱŚřřǰŖŖŖȬȬȱ¢ǰȱȱȱ¢ȱŘŖŗŜǯȱȱǯȱ¢ȱȱ ȱȱřşŖŗȱȱȱȱȱȱȱŗŝŗǰŖŖŖȱȱȱȱȱȱ ȱȱȱȱ ǰȱȱ¢ȱǞŗŗȱȱȱǯȱȱȱȱȱȱǯȱȱȱȱȱŗśŜǰŖŖŖȱ ěȱřŘȂȱȱǰȱŚŖȱȱǰȱȱȱȬȱȱȱȱ ȱȱȱȱȱŘŖŗŜǯ ȱ ȱȱ¢ȱȱȱȱȱȬ tenant occupancy.VanTrust Real Estate LLC is currently constructingȱśŘşǰŘŖŖȬȬȱ¢ȱȱŘŞǯŚŘȱȱȱŚŞŜśȱǯȱȱǯȱȱ¢ȱ ȱȱřŜȂȱȱȱǰȱśŖȂ¡śŖȂȱȱǰȱȱŗŘŘȱȱȱǻ¡ȱȱŗśŖƸǼǯȱȱȱȱ¡ȱȱȱȱȱ¢ȱŘŖŗŜǯȱMerchandise WarehouseǰȱȱȬȱ ȱȱ¢ȱȱȱǰȱ¢ǰȱȱȱȱ¢ȱǰȱȱȱȱǞŗŗǯŝȱȱ¡ȱȱȱȱȱ ȱ¢ȱȱŗŚŗŚȱȱȱǯȱȱȱȱ¡ȱȱȱŜśȱ ȱ¢ȱŘŖŘŖǯ > The Opus Group, Indianapolis6

Revitalization of outdated buildings in the downtown area might increase the demand for a variety of users to locate there.CENTRALINDIANA | OFFICEINDIANAPOLISȱȱ¢ȱȱȱȱĜȱȱ ȱȱȱȱȱȱȱȱȱȱȱȱřśȱȱȱǯȱ¢ȱȱȱȱ ȱǰȱ¢ȱǰȱȱ ǰȱȱȱȱȱȱǯȱȱȱȱȱŗŝȱȱ ȱŜşȦǯȱȱȱȱȱȱȱȱȱřǯśȱȱȱȱȱȱȱǯȱ ȱȱȱȱĜȱȱ ¢ȱ ¢ȱȱ¡ȱȱȱȱȱȱȱȱȱȱǰȱȱȬȬ ȱȱŘŖŗŜǯȱȱǱȱȱȱȱ¢ǰȱȱȱȱȱ ȱȱȱȱȱ ȱ ȱȱǰȱ¢ȱ¢ȱǰȱȱ¢ȱȱȱȱȱȱȱȱȱǯȱȱ Ĵȱȱǯȱȱȱ ȱȱȱȱȱŘŖśǰŝśŖȱȂȱȱȱȱȱ¡ȱȱȱǯȱ ȱȱȱȱǯȱAvailability Rates Asking Ratesȱȱȱȱȱ¢ȱȱȱȱȱȱ ȱȱȱ ȱĴ¢ȱȱȱȱȱȱȱȱ ȱȱȱ£ȱȱȱ ǰȱ ȱ ȱȱȱǞŗŞǯŖŖȦȱȱȱȱȱ ȱǯȱȱȱȱȱ ȱȱȱȱȱȱǞŗŝǯśŖȦȱǯȱĴȱȱ ȬȬȱęȱȱȬęȱ ȱȱȱȱ¢ȱȱȱǰȱ ȱǯȱȱȱȱȱǰȱȱǰȱȱ ȱȱȱȱȱȱȱǞŘŖǯŖŖȦȱ ȱȱȱ ȱ Ȃȱȱ ȱǰȱ ȱȱȱȱȱȱȱǞŗŜǯŖŖȱȱȱ£ȱȱǰȱ ȱȱ¢ȱ ȱ ǞŗřǯśŖǰȱ¢ǯȱȱȱȱȱȱȱȱȱȱȱȱȱ¢ȱȱǯ ȱ¢ȬȬ¢ȱ ȱȱ¡ȱȱȱȱ ȱȱŘŖŗŜȱȱȱ¢ǯ 7

CENTRAL INDIANA | OFFICENotable TransactionsSale CITY SIZE SF SALE PRICE P R I C E /S F OFF MARKET Indianapolis 130,500 $10,700,000 $81.99 Q4 ADDRESS Indianapolis 119,000 $8,600,000 $72.26 Q4 8604-8606 Allisonville Rd. Indianapolis 68,000 $4,788,000 $70.41 Q4 8925 N. Meridian St. 8450 Westfield Blvd.Lease CITY COMP SF BUILDING SF TENANT OFF MARKET Westfield 76,238 300,000 Q4 ADDRESS Indianapolis 75,558 264,357 Carrington 19845 US Hwy 31 North* Indianapolis 68,000 115,648 Mortgage Q1 2016 8425 Woodfield Crossing Q4 Indianapolis 60,452 106,722 Sallie Mae 500 N. Meridian Q3 Hall, Render, Landmark Center Killian, Heath and Lyman, P.C.* Expansion Coordinated CareGrowth & Development> Lakeside Business Center, Carmel Duke Realty Corp.ȱȱȱȱȱȱȬęȱ Ĝȱȱȱȱȱǯȱ ȱǰȱConstruction is underway at Lakeside Green Business ȱǰȱȱȱȱȱȱCenterȱȱȱȱȱ¢ǯȱȱ¢ȱ ȱěȱ ȱȱȱȱȱȱȱǯȱȱȱĜȱŜŗǰŖŖŖȱȱȱȱĜȱǯȱȱ ȱȱȱ ȱȱȱşŜȱȱȱȱ¢ȱȱȱȱȱřśȬȱ¡Ȭȱǯȱȱ ȱȱȱ for nearly 2.4 million square feet of space.ęȱȱȱĜȱȱȱǰȱǰȱȱŘŖŖşǯȱȱȱȱȱȱ ȱȱȱȱ The Switchȱ ȱȱȱȱȱȱȱȱ¡ȱȱȱǯȱ¡ȱȱ ȱŘŖŗśǯȱȱǞřŖȱȱ¡Ȭȱǰȱȱmid-2016. ǰȱǰȱȱĜǰȱȱȱȱ ȱ ǯȱȱǰȱȱǰȱ ȱ¢ȱ8 ȱȱ¢ȱȱȱȱ¡£ȱȱȱȱȱȱ ǰȱȱȱ£ǰȱȱǰȱȱȱȱ ǯȱȱǞŗŞǯśȱȱȱȱǞşǯśȱȱȱ ȱ¢ȱȱ¡Ȭȱęǯ Allied Solutions LLCȱȱȱȱȱȱȱŜŖŖȱ ȱȱȱ¡ȱǯȱȱ¢ȱȱȬ ȱȱȱ ȱ ȱȱȱȱ ȱǞřřȱ million company headquarters in Carmel’s Midtown ǯȱȱȱȱ ȱȱȱȱȱ Ȃȱ ȱȱȱǯȱȱȱȱȱ ȱ¢ȱŘŖŗŜǯȱ

Many factors, such as job growth and low unemployment rates, are creating a healthy retail market for Indianapolis.CENTRALINDIANA | RETAILINDIANAPOLISThe Indianapolis MSA retail market consists of 122 There are several major retail corridors in the area.million square feet. Shopping centers are the primary ĴȱȱȱȱęȬȱȱȱȱdriver of the retail market, making up one-third of the boutiques, restaurants, theaters, and art galleries inIndianapolis inventory. As the largest retail market in the downtown Indianapolis. Broad Ripple, on the northernstate, Indianapolis is home to some of the largest malls and side of Indianapolis, is home to many locally owned shopspower centers in the Midwest. and nightlife. The Fountain Square neighborhood, just ȱȱ ǰȱěȱȱȱǰȱȱȱCastleton Square Mall, located near the Interstate theater, and many food and drink options.69 and Interstate 465 exchange on the northeast sideof Indianapolis, is the largest and busiest mall in Other major shopping centers in the Indianapolis MSAIndiana. The mall is home to over 130 retail stores include Greenwood Park Mall in Greenwood, Metropolistotaling 1.2 million square feet. Anchor tenants include ȱęǰȱȱȱȱ ȱǰȱa 300,000-square-foot Macy’s and a 200,000-square-foot Clay Terrace in Carmel, and The Fashion Mall at KeystoneSears. in Indianapolis.Availability Rates Asking RatesThe local economy continued its steady recovery With interest rates on the move, the record activity andthroughout 2015 with an unemployment claim reduction historically low CAP rates seen in the single-tenant triple-of 17 percent over the previous year and unemployment net market may begin to inch in the opposite direction.rates dropping to 3.8 percent. This bodes well for the However, the change should be modest and predictable asIndianapolis retail real estate market as disposable income well-located assets with strong lease fundamentals willincreases in the market place and transaction activity ȱȱĴȱȱȱȱȱȱcontinues to pick up steam. investors alike. 9

CENTRAL INDIANA | RETAIL Notable TransactionsSale CITY SIZE SF SALE PRICE P R I C E /S F OFF MARKET Indianapolis 52,000 $3,660,000 $70.38 Q1 ADDRESS Noblesville 35,428 $2,500,000 $70.57 Q3 5500 N. Keystone Ave. Noblesville 36,418 $2,100,000 $57.66 Q1 845 Westfield Blvd. 3477 Conner St. CITY COMP SF BUILDING SF TENANT OFF MARKET Indianapolis 23,000 193,846 Q3Lease Indianapolis 22,938 22,938 TJ Maxx Q2 Indianapolis 19,807 19,807 Q4 ADDRESS Masters Group 8811 Harrdegan St. Auto Center 5303 Pike Plaza Rd. 1275 W. 86th St. Sadhana USA Growth & DevelopmentIkea, the Swedish-based furniture retailer, plans toconstruct a new 269,000-square-foot store on 35 acressoutheast of Interstate 69 and E. 116th Street. Constructionon the $40 million project is expected to begin in thespring of 2016. The company will hire about 250 employeesbefore the store is scheduled to open in the fall of 2017.Kroger Marketplace opened a new 124,000-square-foot > Ikea, Fishersstore at 8745 South Emerson Drive in September of 2015.ȱȱěȱȱȱŘŖǰŖŖŖȱ ȱǰȱȱ A new Costco Wholesale will be opening on an 11-acreclothing, toys, kitchen appliances, and home décor. The site near County Line Road and Emerson Avenue innew store required the addition of 300 new employees. Greenwood. Costco is constructing a 148,000-square-footKroger invested $21 million in the project as part of their warehouse, gas station, and tire center.$465 million plan in investments for the Indianapolis areabetween 2014 and 2017. The Shops at Perry Crossing, formerly Metropolis Lifestyle Center, reopened in November 2015 followingCabela’s, an outdoor enthusiast store, opened a new the completion of its $11.1 million redevelopment andlocation in the fall of 2015. Located in the Saxony rebranding. Renovations at the 600,000-square-footdevelopment at 13725 Cabela Parkway in Noblesville, the ȱȱȱȱęȱȱȱ80,000-square-foot retail store created 170 jobs. Described lighting, parking, and outdoor amenities.as a “next-generation” location, this store will sell an¡ȱ¢ȱȱǰȱęǰȱȱȱǰȱȱwell as clothing and outdoor furniture.10

Downtown Indianapolis has seen an increase in the construction of “amenity-rich apartments” over the last year.CENTRALINDIANA | MULTI-HOUSINGINDIANAPOLISLivability.com ranks downtown Indianapolis as the Rent & Occupancythird best downtown in the United States. Downtownȱěȱȱȱȱȱȱȱ ȱȱȱȱȱȱȱǭȱǰȱȱȱȱȱȱȱǯȱȱȱȱ ȱȱȱ ȱȱȱȱȱȱȱȱ¡ȱȱȱ ȱȱȱ£ǯȱ ¢ȱę¢ȱȱǯȱȱȱȱȱȱęȱȱȱȱȱȱȱDowntown Indy, 30,000 ȱȱŘŖŗŘǰȱȱŜǯŚȱȱȱŘŖŗśȱȱŜǯŞȱȱȱȱȱ ȱȱȱ ȱȱ¢ȱ ¢ȱŘŖŗŜǯȱȱȱ Ȃȱ¢ȱȱȱ2020. In comparison, 2010 had approximately 18,300 ȱȱȱǰȱȱ¢ȱ ȱȱȱȱȱǯȱȱȱȱŜŚȱȱȱȱ ȱȱ¡ȱȱȱ¢ǯ10 years.ȱȱȱȱȱȱȱ¢ȱǰȱȱȱȱ¢ȱȱȱȃ¢ȬȱǯȄȱȱ¢ȱȱȱȱȱ ȱ¢ǰȱȬȱǰȱȱȱ ȱȱȱ ȱǯȱNotable TransactionsCOMPLEX ADDRESS ȱ SALE PRICE Ȧ Regency Park $13,400,000 $44,079Oak Park Apartments 5524 Rue Royale, Indianapolis 304 $6,600,000 $40,491 2100 E. Stop 12 Rd., Indianapolis 163 11

CENTRAL INDIANA | MULTI-HOUSINGGrowth & DevelopmentConstruction is underway for the $121 million 360 Market TWG Development, LLC, completed construction for theSquare Apartments in downtown Indianapolis. The new Lockerbie Lofts in the historic Lockerbie District.28-story, mixed-use development will feature 292 luxury The four-story, 215-unit development includes 7,800one, two, and three bedroom apartments, a 40,000-square- ȱȱȱȱĚȱȱȱȱȱŘŚŚȬǰȱfoot Whole Foods Market, an additional 2,500 square feet below-grade parking garage. The project cost an estimatedof retail and a 525-space parking garage. The development $26 million to construct.sits on top of the former iconic Market Square Arena.Flaherty & Collins Properties expects an opening date for ȱȱȱ ȱȱȱȱȱȱęȱȱJune 2017. of the Pulliam Square Apartments on the corner of New York and Delaware Streets in downtown Indianapolis. TheThe Buckingham Cos. is constructing a $110 million ęȱȱȱŗŚśȱǰȱ ȱȱ ȱsecond phase at its CityWay project in downtown $1,100 and $2,700 per month. Phase two of Pulliam SquareIndianapolis. The second phase will include seven new is scheduled to commence in April and consist of addingbuildings, including a nine-story apartment tower, when an additional 335 apartments. The total project is expectedcombined will add up to 450 apartments, the largest to cost $63 million.single-phase addition of downtown apartments since 1987.The project will also consist of 19,500 square feet of retail Ĵȱȱȱ ȱȱspace and a 220-space parking garage. Construction is has seen a sudden change, most notably with the newexpected to be complete in 2018. proposed Montage on Mass development. Construction has yet to begin on the $50 million development, but the project is expected to bring 236 apartments and 37,000 ȱȱȱȱśŖŖȱȱȱĴǯȱȱ hope to have the project completed by 2018.> Montage on Mass, Indianapolis12

CENTRAL INDIANA | SUMMARYCENTRALINDIANA | SUMMARYIndianapolis is located in the heart of the Midwest, making INDIANAPOLIS QUICK FACTSit one of the most highly sought after industrial marketsin the country. The initiatives taken to develop a vibrant • Top 50ȱȱȱȱȱȱdowntown community has created a positive outlook New York Times, 2014ȱȱĜǰȱȱȱȬȱǯȱȱȱȱęȱȱȱȱȱȱȱȱȱ • Top 10ȱ ȱȱȱȱȱȱȱŘŖŗśȱ¢ȱǰȱ ȱ¡ȱȱȱȱ Kiplinger, 2013investments happening in the Indianapolis area for yearsto come. • #4 ¢ȱȱȱȱȱȱȱ¢ȱȱ Forbes, 2013 • #1 for rail and highway connectivity Areadevelopment.comLucas Oil Stadium, Indianapolis Circle Centre, Indianapolis> Indianapolis Skyline > > 13

NORTH CENTRAL INDIANAThe North Central Indiana Region is comprised of four counties, totaling approximately1,928 square miles. Approximately 597,715 people reside within the four counties, with mostof them being in St. Joseph and Elkhart County. The region’s foundation was built uponthe manufacturing industry, but has recently seen aninitiative in establishing a “Regional Innovation DistrictNetwork.” St. Joseph Elkhart LaGrange Kosciusko Noble LaPorte Whitley Porter Marshall Starke Jasper Pulaski Fulton White Cass Wabash Huntington Miami DEMOGRAPHICS BY COUNTYSt. Joseph Population 2015 Median Household 2014 Feb. 2016Elkhart Income Labor UnemploymentKosciusko 267,674 Households $43,045 ForceMarshall 203,560 128,906 Rate 78,669 103,788 $45,172 5.4% 47,812 72,145 102,117 29,921 $52,090 4.2% 17,767 40,312 $45,553 4.6% 23,669 4.7% < GrandView < Aloft, South Bend14

Industrial market emerges from Great Recession through diverse activity and signiﬁcant new construction projects.NORTH CENTRALINDIANA | INDUSTRIALST. JOSEPH COUNTY RV ShipmentsThe St. Joseph County industrial market totals 400Kapproximately 37.6 million square feet and is broken down 350KȱŗŘȱěȱȱȱȱȱŘŖȱȱparks.ȱȱȱȱȱȱȂȱ 300Knorthwest side remains the main industrial submarket ȱȱ¢ǯȱȱȱȱȱ 250Kȱȱȱȱȱȱȱȱǰȱȱȱȱȱȱȱȱȱ 200Kȱȱǰȱ¡ȱȱȬŞŖȦşŖǰȱȱȱȱǰȱȱȱȱȱ¢ȱǯȱȱȱȱŘŖŗŚȱȱȱȱȱ 150K ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16*ȱ¢ȱ¡ȱǰȱȱȱȱȱȱ SOURCE: RVIA * PROJECTEDȃȄȱȱȱȱ¢ȱǰȱȱ< Ignition Park ¢ȱǰȱ¡ȱǰȱ ȱ¢ȱȱȱ ȱȱȱȱ ȱȱǯȱȱȱ¡ȱ ǰȱ¡¢ȱśřǰŝŖśǰȱȱ¢ȱȱȱ¢ȱ ȱȱŘŗȱȱȱȱȱȱȱȱǻǯǯȱ ȱ¢ȱȱȱȃȄȱȱ ȱȱǰȱ¢ȱŘşȱŘŖŗśǼǯ ȱȱȱȱ ȱȱȱ¢ȱȱȱȱȱ ȱ ǰȱȱȱȱȱęȱ¢ȱȱȱ ȱȱȱ¢ȱȱȱȃȄȱ ǯȱȱȱ¢ȱȱęȱȱȱȱȱŜŝśȱ ǯȱ ȱȱȱ¢ȱǯ ¢ȱȱȱ ȱȱ¢ȱȱȱ ELKHART COUNTY ¡ȱȱǰȱȱȱȱǰȱ ¢ȱȱǰȱ ȱȱȱǰȱ ȱ¢ȱȱȱȱ ȱȱ ȱȱǰȱȱȱǰȱ ȱȃȱȱȱȱǰȄȱ ȱŞŖȱȱȱ ¢ȱǰȱ¢ȱȱȱǰȱȱȱ ȱȱȂȱȱȱȱȱ ȱȱǯȱ ȱ¢ǯȱȱȱȱȱŘŖŗśǰȱȱ ȱȱȱ¢ȱ ȱȱȱȱȱŘŖŖŜǯ 15

NORTH CENTRAL INDIANA | INDUSTRIALKOSCIUSKO COUNTY MARSHALL COUNTYKnown as the “Orthopedic Manufacturing Capital of the The main industrial submarket within Marshall CountyWorld,” the orthopedic industry remains the foundation is the 88-acre site of PIDCO – Commerce Industrial Park,of the Kosciusko County industrial market, providing located near Pioneer Drive and Commerce Street ina stable workforce and economy. Over 30 life science/ Plymouth. Located in the Commerce Industrial Park is theorthopedic companies are situated within Kosciusko recently completed Commerce Building, a 45,000-square-County, and make up nearly one-third of the $38 billion foot, expandable to 135,000 square feet, manufacturingglobal orthopedic industry. shell building.ȱ ȱ ȱ¢ȱȱĜ¢ȱȱȱ¢ǯȱ Other industrial areas within the county include VanStarting with a 63,000-square-foot shell building, the tech Vactor Park, a 77-acre site located along Pine Road andpark will eventually total roughly 1.2 million square feet of U.S. Highway 30 in Plymouth, the 74-acre Argos 17th Roadspace for manufacturing and research and development. Industrial Site, Towerview Industrial Park, Pioneer Drive & CFE Railroad, and Heritage Park. The Tech Farm, a 40-acre technology park located at the intersection of U.S. Highway 30 and Pine Road, remains one of the major components of Marshall County’s economic development strategy to target technology life sciences, light industrial and agriculture-oriented technology businesses.> Commerce Shell Building, Plymouth Available Square Feet ǯȱȱ¢ȱĴȱȱȱȱȱ ȱ¢ȱ ȱȱŚŖŖǰŖŖŖȱȱȱȱěȱȱ2015 Available Square Footage market since the beginning of the year. Since 2012, the amount of square footage marketed decreased for St.3M ȱȱȱ¢ǯȱ ' ' ' (' Availability rates are expected to remain consistent looking into 2016 as well. Despite new product coming2M ȱȱǰȱ¢ȱ ȱȱȱę¢ȱ ěȱȱȱȱȱȱ¡ȱȱȱȱ upon delivery.1M Kosciusko County experienced an uptick in availability rates following some consolidation activity amongst0 Elkhart Kosciusko Marshall companies in the orthopedic industry, which led to vacated St. Joseph ȱȱȱȱȱĜȱǯȱȱȱ¡ȱȱ the market will recover from this and remain steady overAvailability rates throughout the region remained stable time, with the possibility of build-to-suit activity in theȱŘŖŗśǯȱȱȱ¢ȱĴȱȱȱȱȱ ¢ȱȱ ȱȱȱȱěȱȱȱinventory that has been on the market over the past several the international presence in the area. Conversely, asyears. ȱ¢ȱȱȱȱȱęȱȱȱ industry tenants, the low inventory and turnover of space in the area yields low availability in that market.16

NORTH CENTRAL INDIANA | INDUSTRIALAvailable Square Footage Availability Rates10M 12%8M 10%6M 8% 6%4M 4%2M 2%0 2011 2012 2013 2014 2015 0% 2011 2012 2013 2014 2015 2010 2010 '(& )( & #$%& '(& )( &#$%& Asking RatesWhile still under the average industrial asking rates for ȱȱȱ¡ȱȱȱȱthe state, industrial asking rates remained fairly consistent throughout the year, though ended the year with a strongbetween 2013 and 2015, with a slight decrease in 2015. We increase in the fourth quarter, bringing the annual averageanticipate that rates will begin to trend upwards in the to $3.10.coming year as newer, higher quality inventory comes ontothe market. 2015 Average Asking Rates (PSF NNN)Asking rates for manufacturing space ranged from $2.50 St. Joseph County MFG FLEX WHSEȱǞŚǯŖŖȦȱǰȱȬȱǻǼǯȱȱĚ¡ȱȱ Elkhart Countyranged from $3.95 to $5.50/square foot, NNN. Warehouse/ Kosciusko County $2.78 $4.66 $3.10Distribution space ranged from $2.50 to $4.25/square foot, Marshall County $2.76 $3.95 $3.14ǯȱȱȱĚ¡ȱȱȱȱ ȱȱ $3.81 $4.25 $2.80from 2014, averaging the same $4.66/square foot rate as the $3.50 $4.15 $2.94previous year.Asking Rates (PSF NNN) Asking Rates (PSF NNN)St. Joseph County Elkhart County$6 $6$4 $4$2 $2$0 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 $0 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q12 4Q12 2Q12 17

NORTH CENTRAL INDIANA | INDUSTRIAL Notable TransactionsSale CITY SF SALE PRICE P R I C E /S F OFF MARKET South Bend 204,104 $1,810,000 $8.86 Q1 ADDRESS South Bend 85,954 $1,635,000 $19.02 Q4 1827 N. Bendix 128,018 $1,325,000 $10.35 Q1 1217 E. 7th St. Elkhart 230,633 $1,325,000 $5.75 Q1 2040 Industrial Pkwy. Warsaw 65,638 $1,315,000 $20.03 Q2 3454 Detroit South Bend 3707 Lathrop St.Lease CITY COMP SF BUILDING SF TENANT OFF MARKET Elkhart 142,920 ADDRESS Elkhart 136,350 447,700 MJB Wood Group Q1 1601 Fieldhouse Ave. South Bend 115,000 136,350 Inc. Q2 Mishawaka 73,775 28812 Phillips St. Elkhart 60,000 W.W. Williams 701 W. Chippewa Rd. Warsaw 33,716 Logistics, LLC 520 S. Byrkit Ave. 2701 Ada Dr. 1,400,000 Nyloncraft, Inc. Q3 2094 N. Boeing Rd. 80,375 Absolute Q3 Innovations 138,900 Wesco Distribution Q3 33,716 Zimmer Biomet Q4Investment & Other Notable SalesThere were multiple large and/or investment sales in theNorth Central region in 2015. In the Blackthorn Area inSouth Bend, 1827 N. Bendix Drive and 4135 Meghan BeelerDrive sold as investments to buyers and, in the case of theMeghan Beeler property, sold at an 11 percent cap.In Elkhart County, the property located at 2400 SterlingAvenue sold for $1.7 million and an 11 cap to NelsonDevelopment Company. While not for an investmentsale, the October sale of 402 N. Sheridan Road in SouthBend was nonetheless notable because it represented theexpansion of a local company, signaling the strength andĴȱȱȱȱȱǯ > 2400 Sterling Ave., Elkhart18

NORTH CENTRAL INDIANA | INDUSTRIAL New Construction, Addition & Remodel ActivityBuilding Permit Total Value St. Joseph County experienced a 200 percent increase in construction projects year-over-year, largely due to$80M '( ' ') multiple large new construction projects in the northwest$60M area of South Bend, totaling nearly $19 million.$40M Overall, for the North Central Indiana region, the industrial building permit values for 2015 totaled $85.9$20M million with the average industrial building permit value for 2015 around $429,000 for the region. St. Joseph$0 Elkhart Kosciusko and Elkhart Counties made up nearly 95 percent of the St. Joseph industrial projects in the North Central Indiana region for 2015.After a record increase in industrial projects in 2014, thetotal value of industrial building permits issued for North Looking at the year-over-year comparison, St. JosephCentral Indiana in 2015 decreased 19 percent from 2014 to ¢ȱ¡ȱȱȱęȱȱȱ2015. Still, 69 percent of activity in the region for the year industrial building permit values from 2014 to 2015.was due to new construction projects. After a record year in 2014, Elkhart County saw a ȱȱȱȱȱȱęȱȱŘŖŗśǯȱ Kosciusko County saw a slight increase from 2014 to 2015 indicating stable market activity. Growth & DevelopmentST. JOSEPH COUNTY Work on developing an Innovation District at the southern end of downtown South Bend is moving along. TheToyota Group and Ares Private Equity Group are Innovation District includes Ignition Park, Union Stationpartnering to build a $500 million natural gas power plant Technology Center, and multiple buildings formerly usednear New Carlisle. The two companies will operate as for Studebaker assemblage. Plans for one of the buildingsSt. Joseph Energy Center, LLC. Ground broke in March includes the renovation of an 800,000-square-foot formerwith expectations to be operational in June 2018. The Studebaker assembly plant, now known as Renaissanceproject will create around 500 construction jobs and when District. When completed, the Renaissance District willcompleted, will employ roughly 20 people in high-skilled ȱĜǰȱȱȱǰȱȦȱoperator and technician jobs. space, and residential condos. > St. Joseph Energy Center Rendering, New Carlisle > Renaissance District, South Bend 19

NORTH CENTRAL INDIANA | INDUSTRIAL>>Four projects worth at least $31 million in investment and ELKHART COUNTY about 600,000 SF of industrial space are underway for the AmeriPlex at Interstate 80/90 in South Bend. FedEx Kessington Machine Products, an aerospace Ground constructed a $15 million, 215,000-square-foot ȱęǰȱȱȱȱǞŗŝǯŘŝȱȱ distribution center at 5115 Dylan Dr. Holladay Properties expansion. The expansion will create 121 jobs by the end spent $2.2 million to add 60,000 square feet of space near of 2017, doubling its operation in the area. The company Hubbell Electricals distribution center at 5231 Dylan Dr. is expected to be a “major supplier” to GE Aviation’s new Chase Plastics broke ground on a $5.8 million distribution ǞŗŖŖȱȱȱȱ¢Ĵǯȱȱȱ¢ȱȱ center at 5233 Dylan Dr. The 125,000-square-foot facility is approved the formation of an economic revitalization zone scheduled to open in the fall. Lastly, Great Lakes Capital and a property tax break for the project. (GLC) is building an $8 million, 210,000-square-foot speculative building, expandable to 378,000 square feet, at The Elkhart RV industry had a robust 2015. Jayco, one of the southeast corner of Adams Rd. and Dylan Dr. the county’s largest RV manufacturers, unveiled a new General Sheet Metal broke ground on their new $22.7 production facility on its Middlebury campus this month. million state-of-the-art facility in South Bend. The The 185,000-square-foot facility produces Jayco’s line of 188,000-square-foot building is scheduled to be ready for ¡¢ȱǰȱȱǯȱȱ ȱȱ occupancy in September 2016. facility could create up to 150 jobs. Keystone RV Company opened its new 119,000-square-foot travel trailer production South Bend Distribution Center I Renderingg ¢ǯȱȱśŝǰȱȱȱřŚŘśȱȱǰȱȱȱ June 2016 than $5 million to construct and employs 70 people, with another 150 expected to be added as production increases. Meanwhile, Talon Products, an RV parts manufacturer, announced plans to create 120 new jobs by 2018 and invest $13.5 million to construct a new 120,000-square-foot ȱȱȱȱȱȱȱ ȱȱǯȱȱȱ¡ȱȱȱȱ¢ȱ summer 2016. Also, Grand Design RV began construction ȱȱŘŗŖǰŖŖŖȬȬȱȱȱȱ¢ȱȱ 2 complex in Middlebury. The expansion is expected to create 35 new jobs, bringing the plant’s total employment to about 670, with completion set for the fall of 2016. ȱȱȱUniversal Trailer’s new state-of- the-art manufacturing facility in Bristol. The new building ȱȱȱęȱȱȱȱȱȱȱȱ industry. The expected 200,000-square-foot facility is to be built on 43 acres and will cost an estimated $21.3 million. The project will add 35 new employees in addition to keeping 137 jobs. KOSCIUSKO COUNTY The new Warsaw Technology ParkȱĜ¢ȱȱȱ July. Starting with a 63,000-square-foot shell building, the tech park will eventually total roughly 1.2 million square feet of space for manufacturing, research and development. Syracuse-based Poly-Wood Inc. opened its new manufacturing and warehouse facility at 813 W. Brooklyn Street. The manufacturer of outdoor furniture invested $23.275 million to construct and equip a new 230,000-square-foot manufacturing and warehouse facility. The expansion is expected to create up to 250 new jobs by 2018.20

The healthcare industry continues to play a dominant role in theoffice market. Medical users continue to vie for space proximal toSaint Joseph Regional Medical Center and Memorial Hospital as aconvenience for both themselves and their patients.NORTH CENTRALINDIANA | OFFICEST. JOSEPH COUNTY > Mishawaka Medical Center, MishawakaSouth Bend’s Central Business District and Mishawaka’sEdison Lakes Corporate Park remain two of the primaryĜȱȱ ȱǯȱȱ¢ǯȱȱȱȱśǯŚȱȱȱȱȱȱȱȱȱȱǻȱśśȱǼȱĜȱȱȱȱ ȱȱ ȱǯBlackthorn Corporate Park, located on the northwestside of South Bend, and Foundation Center, located nearȱ¢ȱȱȱȱǰȱȱȱȱȱȱȱȱĜȱǯȱ£ȱȱȱȱȱ ȱȱĜȱȱȱȱȱȱĜȱȱȱȱȱǰȱȱȱȱ ȱȱ¢ȱȱ¢ǰȱȱȱ£ȱȱȱȱǯELKHART COUNTY > Memorial Children’s Hospital Rendering, South Bendȱ¢ȂȱřǯŘȱȬȬȱĜȱȱȱ¢ȱȱȱȱȱǯȱȱȱȱȱȱǰȱȱȱ ȱȱĜȱǯȱǰȱȱĜȱȱȱ¢ȱȱȱ ȬȱĜȱǰȱȱȱ ȱȱĴȱȱȱǰȱȱȱȱȱȱ¢ȱǯȱȱ 21

NORTH CENTRAL INDIANA | OFFICEKOSCIUSKO COUNTY MARSHALL COUNTYȱȱ¢ȱĜȱȱȱ¢ȱȱ ȱȱ¢ȱĜȱȱȱȱȱ¢ȱȱȱ¢ǰȱȱȱȱĜȱ ȱȱȱȱȱ¢ǰȱ ȱȱȱȱȱǯȱȱȱȱȱĜȱ ¢ȱ¢ȱȬȱȱ Ȭ¢ȱĜȱǯȱȱȱȱȱ¢ȱǰȱȱ ¡ȱĜȱȱȱȱȱĜȱȱȱȱȱȱǯȱ ȱĜȱȱȱ ȱǯǯȱ ¢ȱřŖǯȱȱȱȱŗřŘǰŖŖŖȬȬȱ¢ȱȱȱ ȱ ȱ ȱ¡¢ȱȱ ȱȱȱ¢ȱȱĜȱȱȱȱĜȱȱȱǯ ȱȱǰȱ ȱ¢ȱǰȱ¡ȱ ȱȱǰȱ¢ȱǯǰȱȱȱȱ ȱȱǯȱȱ Available Square Feet2015 Available Square Footage by County ȱ¢ȱȱȱȱȱ ȱȱȱ Ĝȱ¢ȱǰȱȱȱȱŘŖȱȱ1.2M ' ' ' (' ȱȱ¢ǯȱȱ¢ȱ¡ȱȱ 1M ȱȱȱĜȱ¢ǰȱŗŗǯŖŚȱȱ ȱȱȱȱȱȱǰȱȱȱȱȱȱ800K ȱȱȱȱȱȱȱ ȱ¡ȱǯȱȱȱȱęȱ¢ǰȱȱ¢ȱ600K ȱȱřȱȱ¢ȱ ȱĴȬȬȱ ȱ ȱȱǯȱȱȱȱȱ400K ȱěȱȱǰȱȱȱȱȱ ȱȱȱ ȱȱ ȱȱǰȱǯȱȱ¢ȱ200K ¡ȱȱȱȱĜȱ¢ȱȱȱ ȱ ȱȱȱȱ¢ȱȱȱȱ¢ǰȱȱŗŖǯŚŞȱ 0 Elkhart Kosciusko Marshall ȱȱŘŖŗŚȱȱŝǯŚŗȱȱȱŘŖŗśǯ St. Joseph ¢ȱęȱ ȱȱȱ¢ȱȱȱĜȱǰȱ Availability Rates ȱȱȱ¡ȱ¢ǯȱȱȱȱȱȱ ȱȱȱȱȱȱ 20%ŘŖŗśǰȱȱęȱȱȱȱǯȱȱ 15%ȱ¢ǰȱȱǰȱȱ¢ȱȱȱȱ¢ȱȱȱȱȱȱ¢ǰȱȱ¢ȱȱȱȱěȱȱȱȱȱȱȱȱȱ¢ȱȱȱȱȱȱ¢ǯȱȱȱĜȱ¢ȱȱȱȱȱȱ 10% 2011 2012 2013 2014 2015ȱȱȱȱȱŘŖŗśǰȱȱȱȱȱȱȱŗŘȱǯȱȱȱ 5% '(& )( &¢ȱȱȱĜȱȱȱȱȱ¢ȱȱŗȱȱȱŚȱǰȱȱȱȱ 0%ȱȱȱȱȱ¢¢ȱȱȱȱ 2010ȱŗŘǯşŗȱǰȱȱĴȱȱȱ ȱȱȱȱȱŘŖŗŚȂȱȱȱŗŖǯŜřȱǯȱ #$%&22

NORTH CENTRAL INDIANA | OFFICE Asking RatesWhile we have seen demand for the service sector begin to > South Bend Central Business DistrictǰȱȱĜȱȱȱȱȱȱȱmore with less. Class A CBD asking rates for the regionǰȱȱǰȱȱǞŗśǯŖŖȱȱǞŘŘǯŖŖȦȱǰȱgross. Class B CBD asking rates for the region ranged, onǰȱȱǞŗŖǯŖŖȱȱǞŗŝǯŝśȦȱǰȱǯȱȱȱȱȱȱȱȱĜȱȱȱȱȱȱȱǞŗśǯŖśȱȱǞŘŖǯŖŖȦȱȱǰȱȱȱȱȱȱȱĜȱȱȱȱǞŝǯŖŖȱȱǞŗřǯŞŞȦȱǰȱǯȱȱȱȱȱȱ¢ǰȱĜȱȱȱȱ¢ȱǞŗǯŖŖȬŗǯśŖȦȱȱȱ¢ǰȱǯȱȱ¢ȱěȱ¢ȱȱȱȱǯȱȱ¢ǰȱ ȱŘŖŗśȱ ȱȱȱȱ¡ȱǰȱȱȱȱǰȱ ȱȱȱȱȱȱȱȱȱȱȱěȱȱȱȱ¢ǯȱȱȱȱȱȱȱĜȱȱȱ ȱȱȱȱȱȱcoming to bear on asking rates.Class A Asking Rates Comparison (Gross)$24$22 Photo Credit: DTSB$20 ȱȱȱ ȱ¢ȬȬ¢ȱȱǯȱȱ ¢Ȃȱ ȱȱȱȱȱȱȮȱȱȱȱ$18 ȱȱȱȱȱȱǯȱȱȱ ǰȱȱȱȱȱȱǞŗşǯşśȱȱȱȱ$16 ȱŘŖŗŚȱȱǞŘŗǯŘřȱȱȱȱȱŘŖŗśǯȱȱȱȱȱ ȂȱȱȱȱǰȱȱȱȬǞŗşȱǰȱ$14 ¢ȬȬ¢ǯȱȱȱ¡ȱȱȱȱ ȱȱȱȱ ȱȱȱȱȱ¡ȱ ȱ¢ȱȱ ¢ȱȱ$12 ȱȱȱȱȱǯ 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 #$%&'&( )'*2015 Class A & B Average Office Lease 2015 Class A & B Average Office LeaseAsking Rates (GROSS) Asking Rates (NNN)St. Joseph County ȱȱ St. Joseph County ȱȱ Elkhart County District (CBD) Elkhart County District (CBD)Kosciusko County $15.48 $14.06 Kosciusko County $11.54 $13.09Marshall County $14.54 Marshall County $9.78 $12.77 $12.69 $7.90 $11.51 N/A $11.01 $13.70 $8.00 $17.14 N/A 23

NORTH CENTRAL INDIANA | OFFICE New Construction, Addition & Remodel Activity Ignition Park Rendering, South Bend Catalyst One, Ignition Park>> Catalyst Two, Ignition Park >New construction, addition, and remodel projects in the ȱ¡ȱȱȱȱ¢ȱȱȱǯȱȱȱȱȱĜȱȱȱŘŖŗśȱȱǞřŖǯŝȱ ¢ȱȱȱȱȱȱȱȱȱȱȱȱǰȱǞśǯşȱȱȱȱŘŖŗŚǰȱ ȱȱȱ ȱȱěȱȱȱȱȱȱ¢ȱȱȱĜȱȱȱȱȱȱȱȱǞŘřŗǰŖŖŖǯȱ ȱǯȱȱȱȱȱ¢ȱȱ¢ǰȱ ȱ¡ȱȱ ȱȱȱ ȱȱ¡ȱȱȱ ȱęȱȱȱȱȱȱȱȱ ȱǯ ȂȱǞřǯŜȱȱ ȱȱȱȱȱȱȱȱȱȱȱȱȱǰȱȱ Building Permit Total ValueǞřǯşȱȱ ȱȱȱȱȱ¢ȱşŗŗȱȱȱȱ ǰȱȱȱȂȱ ȱ $20Mȱȱȱ ǰȱȱȱȱȱǞŜȱǯ $15Mǯȱȱ¢ȱ¡ȱȱȱȱȱȱ $10MȱȱĜȱȱȱȱŘŖŗśȱ ȱǞŗǯŝȱȱ $5MȱȱŘŖŗŚǯȱȱ¢ȱȱȱȱ¢ȱȱ¢ȬȬ¢ǰȱ ȱȱ¢ȱ ȱȱȱȱ $0ȱ¢ȱȱȱǰȱȱȱĴȱȱǞŜǯŞȱǯȱ St. Joseph Elkhart Kosciusko24

NORTH CENTRAL INDIANA | OFFICENotable TransactionsSale CITY SF SALE PRICE PRICE PSF OFF MARKET South Bend 100,019 $2,099,000 $20.99 Q4 ADDRESS South Bend 89,233 $1,725,000 $19.33 Q1 100 E Wayne St. 26,766 $825,000 $30.82 Q4 401 E. Colfax Goshen 11,400 $425,000 $37.28 Q3 1101 Eisenhower South Bend 5,516 $265,000 $48.04 Q3 3620 Deahl Ct. 9,340 $250,000 $26.77 Q2 322 S. Buffalo Warsaw 11590 McKinley Hwy. OsceolaLease CITY COMP SF BUILDING SF TENANT OFF MARKET Warsaw 6,832 ADDRESS Plymouth 6,521 8,552 Nextrimity Q1 210-212 N. Buffalo Ct. South Bend 5,992 6,521 Solution, Inc. Q3 Mishawaka 5,885 78,790 Q4 1550 Pidco Dr. Lighthouse Autism Center 3575 Moreau Court 435 Park Place Circle Total Quality Logistics 6,000 Smart Temps Q2 > 100 E. Wayne St., South Bend > 3575 Moreau Ct., South Bend 25

NORTH CENTRAL INDIANA | OFFICEGrowth & DevelopmentST. JOSEPH COUNTYThe One Michiana Square building in downtown South ȱŗŝǰŖŖŖȬȬ Ironworks building in downtownBend was purchased by Wayne Street Associates, LLC, in ȱȱ ȱ¢ȱǯȱȱȱȱȱǯȱȱ ȱ ȱȱȱȱȱęȬĚǰȱ ȱ¢ǰȱȱȱęȱȱȱȱȱśǰŞŖŖȬȬŗŖŖǰŖŖŖȬȬȱǰȱȱȱȱȱȱǯȱ ȱęȱĚȱǯȱȱȱ ȱȱȱȱȱ ȱęȱȱȱȱǞŝȱȱȱ scheduled to begin construction in spring 2016 and willǯȱȱ ȱȱȱȱǰȱ ȱȱȱȱȱȱȱ¡ȱǯȱȱAdvanced Centers for Cancer Care, a newly established ȱ ȱȱȱ¡ȱȱȱęȱĚȱhealthcare services company, announced plans to locate ǰȱȱĚȱĜȱȱȱ¡¢ȱȱȱȱȱȱǯȱȱȱ ȱȱȱ¢ȱ ȱȱĚǯȱȱŗŗŖȱ ȱȬ¢ȱȱȱȱ¡ȱęȱ¢ǯȱȱ¢ȱȱ¡ȱȱȱǞŝȱȱȱȱȱ ȱǰ Beacon Health Systems and Memorial Healthimprove their new space. South Bend’s Redevelopment Systemsȱȱȱȱȱȱ ȱǞŗśȱȱȱȱ ȱȱȱǞşŖŖǰŖŖŖȱ ȱȱ ȱȱǭȱ¢ȱȱȱȱ ¢ȱrenovation. ȱ ǯȱȱ Ȭ¢ȱ¢ȱ ȱȱȱȱȱ ŚŝȬȱȱȱ¢ȱŜŝǰŖŖŖȱȱȱȱǯȱȱHealy Groupȱȱȱȱ ȱŗŘǰřŖŖȬȬȱ ¢ȱȱ¡ȱȱȱȱȱȱȱŘŖŗŜǯȱȱȱȱȱȱȱȱȱȱȱȱȱ September, Memorial Health System began constructionGenerations Drives. Healy Group, which specializes in risk ȱȱ ȱǞśŖȱȱMemorial Children’s Hospitalȱȱęȱǰȱȱ¡¢ȱ in downtown South Bend, with Beacon Health SystemǞŘǯŚȱȱȱȱȱęȂȱȱ£ǯȱȱ ȱȱǯȱȱŗŖŖǰŖŖŖȬȬȱ¡ȱȱȱȱȱȱȱȱŘŖŗŚǯ ¡ȱȱȱȱŘŖŗŝǯȱ> Ironworks, Mishawaka > Memorial Health & Lifestyle Center Rendering, Mishawaka26

NORTH CENTRAL INDIANA | OFFICEELKHART COUNTY KOSCIUSKO COUNTYThe healthcare industry saw multiple openings and In August, Banner Medical ȱȱȱȱannouncements of new construction in the 2015 year. ǞŜǯřȱȱȱȱȱŚřǰŖŖŖȬȬǰȱȬȬThe Maple City Health Care Center opened in Goshen’s Ȭȱȱȱȱȱȱ ȱęȱȱȱȱ¢ǯȱȱ ȱěȱȱ ¢ȱǯȱȱ ȱ¢ȱȱȱȱclinic was a unique, $2.2 million project that included ǰȱȱȱȱȱȱȱŘŖŗŜǯȱȱȱȱa 4,000-square-foot addition to the original structure. ¡ȱȱȱȱȱŝŜȱȱ¢ȱŘŖŗşǯȱȱȱ ȱȱThat same month, IU Health Goshen broke ground on ȱ¡ȱȱȱŗŗŖǰŖŖŖȱȱǯa 10,000-square-foot clinic located at 2824 Elkhart Road.ȱȱĜ¢ȱȱȱȱŘŖŗŜǯȱȱȱ¢ǰȱ ȱȱȱȱ ȱǞŘŖȱȱȱ¡ȱSt. Joseph Health System’s Plymouth Medical Center in Warsaw. Parkview Warsaw ěȱ¢ȱǰȱopened its new 8,000-square-foot Emergency Department. outpatient specialty medicine, outpatient rehab and 24/7The new addition increased SJRMC’s capacity by more ¢ȱȱǯȱȱ ȱŞŜǰŖŖŖȬȬȱȱŜŖȱǯȱȱŘȱȱȱȱȂȱȱ ¡ȱȱ¡ȱȱȱȱŗŖŖȱǯȱȱęȱȱȱǯȱȱȱȱ¢ǰȱElkhartGeneral Hospital celebrated the opening of its $74 million,ŗŜŖǰŖŖŖȬȬȱ¡ȱȱȱȱǯȱ> American Trust Place, South Bend > Banner Medical Rendering, Warsaw“ The St. Joseph office market saw a narrowing of inventory with the JMS Building and former Chase Tower taken offline. Future plans show only limited office spacereturning to the market after the JMS renovations, while all Chase Tower office spacewill be converted to residential. As the region continues to invest in development ofa quality of place, and there is an increased interest in moving to the urban core, wedo expect forces to converge to support the development of more attractive office 27space in the urban centers of the region.”BRAD TOOTHAKER – PRESIDENT & CEO, BRADLEY COMPANY

The region is seeing an increase in retail activity, and with newdevelopments happening throughout the region, this momentumis expected to continue. The rise in mixed-use projects is creatingmore opportunities for new retailers to enter the market.NORTH CENTRALINDIANA | RETAILST. JOSEPH COUNTY > Toscana Park, GrangerThe University Park Retail Trade area, located alongGrape Road and Main Street in Mishawaka, continuesȱȱȱȱȱǰȱĴȱȱfrom throughout the 11-county Michiana region. The areais anchored by the 923,000-square-foot super-regionalSimon-owned University Park Mall, which underwenta $3.5 million renovation in 2014. Anchor stores includeJCPenney, Macy’s and Sears plus over 120 specialty shops.Located near the mall is Toscana Park and HeritageSquare, a 180,000-square-foot open-air lifestyle center.Toscana Park and Heritage Square, both located onGumwood Road in Mishawaka, generate interest withinthe area. Toscana Park is currently operating at close to fullcapacity, with only a few vacant suites. Current tenants tothe development include Tony Sacco’s Pizza, Golf Club ofGranger and Smoothie King.Eddy Street Commons, adjacent to the University of NotreDame, features 90,000 square feet of retail space, whichis over 90 percent leased. Eddy Street Commons tenantsinclude the 20,000-square-foot Notre Dame Hammesȱȱ·ǰȱȱęĴǰȱǰȱȱBar & Grill, Five Guys Burgers & Fries, Kilwin’s Chocolates& Ice Cream, McAlister’s Deli, O’Rourke’s Public House,TIAA-CREF, and many more. The mixed-use project alsoȱȱŜŝȬȱęȱȱǭȱǰȱȱ ȱȱȱȱof residential options for lease or purchase including lofts,apartments, condos, townhomes, and single family homes. > University Park Mall, Mishawaka28

NORTH CENTRAL INDIANA | RETAILThe south side of South Bend is another regional trade KOSCIUSKO COUNTYarea that draws much interest. Composed of four separatesub-areas, including East Ireland, Erskine Hills, South The major retail submarkets of Kosciusko County areGateway, and the Michigan & Main Street Commercial concentrated within the City of Warsaw. The State RoadCorridor, the trade area encompasses over 1.4 million ŗśȱȱǯǯȱ ¢ȱřŖȱȱȱȱĴȱsquare feet of commercial development. Improvements to a large majority of the retail growth within the area,U.S. Highway 31 as well as series of street improvements with tenants such as Super Walmart, Lowe’s and Kohl’s.ȱ ȱĴȱĚ ȱȱĜȱȱȱȬ Other submarkets include those along U.S. Highway 30and-coming trade area. and Parker Street, with tenants including Menards and Martin’s Super Market, and along U.S. Highway 30 EastELKHART COUNTY with three separate shopping plazas: Market Place of Warsaw featuring Carson’s, Lake Village featuring K-Mart,Elkhart’s biggest retail development in the past 20 years, and Woodland Plaza: Big R and Staples.the Shoppes on Six, completed construction and openedfor business in 2015. The 78,000-square-foot, $13.5 million New retail development Warsaw Commons has created adevelopment is anchored by Ross Dress for Less, Shoe new retail pocket on the north side of Warsaw. The plaza isCarnival and PetSmart. Additional tenants include Rue21, located at State Road 15 and County Road 300 and includesCJ Banks, Maurices, and more. major tenants such as Kohl’s, T.J. Maxx, Shoe Carnival, PetSmart, Dollar Tree, Kay Jewelers, Maurices, and UltaElkhart County’s Dunlap area, located along U.S. Beauty.Highway 33 on the north side of Goshen, experiencedmarket entry and growth by several national and regional MARSHALL COUNTYretailers. Concord Mall recently announced plans for a$50 million renovation, and Walmart is planning a new Marshall County retail is centered near Oak Road, State189,000-square-foot store to replace its existing store at Road 17 and U.S. Highway 30 in Plymouth, with severalElkhart Market Centre. Retail developments are planned national and local tenants occupying space in shoppingon four outlots in Market Centre, contingent upon centers such as Pine Creek Plaza, Plymouth Centre, andWalmart’s expansion. Pilgrim Plaza. Major tenants include Walmart, K-Mart, Sears, Applebee’s, and Bob Evans.> Shoppes on Six, ElkhartPhoto Credit: Thompson Thrift Development 29

NORTH CENTRAL INDIANA | RETAIL Available Square FeetThe average retail availability rate for the North Central 2015 Available Square Footage ' ' ' ('Indiana region increased slightly from 2014 to 2015, ȱȱȱȱȱ¢ȱȱȱȱęȱǯȱǯȱ 1.5Mǰȱǰȱȱȱȱ¡ȱȱȱȱȱȱȱ¢ȱȱȱȱ 1Mȱȱ¢ǰȱ ȱȱ¢ȱ ȱȱǯȱȱȱȱȱ¢ǰȱȱȱȱ 500K¢Ȃȱ¢ȱȱȱ ȱȱ¢ǯȱHowever, both counties saw availability increases of more 0 Elkhart Kosciusko MarshallȱŘȱȱȱȱȱŘŖŗśȱ¢ȱǰȱȱȱȱȱ St. Josephȱ¢ǰȱȱȱȱȱȱ ȱȱȬȱȱȱ ȱȱȱȱȱȱȱȱ¢ǯȱ Overall, the region saw increased activity in 2015, andȱȱ ȱȱȱȱěȱȱȱ ȱȱ¡ȱȱȱ¢ȱȱ ȱȱȱ¢ȱȱ¢Ȃȱǯȱȱȱȱ¢ǰȱȱ¢ȱ ȱȱ¡ȱ ȱ¢ǯȱȱȱȱȱȱȱ ȱȱȱ¢ȱǯȱȱȱ showing a greater interest in the area and with new retailȱȱȱȱ¢ȱȱȱ ȱȱȱȱȱ¢ȱȱǰȱǰȱȱȱȱȱȱȱȱ ȱȱȱȱȱȱ¢ȱȱǯȱ¢ȱȱȱȱ ȱǯȱAvailable Square Footage Availability Rates 10%1.2M 8% 1M 6%800K600K 4%400K200K 2% 0 2012 2013 2014 2015 2009 2010 2011 2012 2013 2014 2015 2011 '(& )( & #$%& '(& )( & #$%&> Downtown South Bend River Lights30

NORTH CENTRAL INDIANA | RETAILAsking RatesAverage retail lease asking rates for the region have Retail asking rates in general have been slowly risingremained stable over the past few years, with 2015 seeing over the past few years, with market averages remainingrates trending upwards across all property types and positive and steady. Similar to 2014, retail spaces arecounties by an average $2.50. Regionally, average asking transacting at higher values in some areas, but manyrates for new construction space ranged from $18.50 to ȱȱĚǯȱȱȱ¡Ȭȱȱjust over $27.00/square foot, triple-net (NNN). Average ȱȱȱǰȱěȱȱȱȱǰȱasking rates for second generation retail spaces under ten asking rates for the region may slightly increase in thethousand square feet ranged from $7 to $18/square foot, coming years. The large retail tertiary market in NorthNNN. Second generation space above ten thousand square Central Indiana, South Bend/Mishawaka, experiences thefeet ranged on average from $5 to $12.00/square foot, ěȱȱ¢ȱȱȬȱȱ ȱȱȱNNN. As the area continues to see steady amounts of new larger, primary or secondary markets.ǰȱȱȱȱȱĜȱȱĴȱinto the market, it is expected that asking rates for retail 2015 Average Asking Rates (PSF NNN)space will continue to see gradual increases throughoutthe next few years. $25Elkhart County saw a considerable uptick in new $20construction asking rates this year, from $13.10 in 2014 to$22.10 in 2015, mostly due to the opening of the Shoppes $15on Six. St. Joseph County also saw a four dollar increase inaverage asking rate, from $15.92 to $19.97. Overall, demand $10for retail space has increased in St. Joseph County, due¢ȱȱȱĴȱȱ ȱȱ $5such as Toscana Park and Heritage Square, as well asproperty being marketed at the River Rock development in $0 Elkhart Kosciusko MarshallMishawaka and the ground-level retail at the LaSalle Hotel St. Josephin South Bend. !> Smart Street Program, Downtown South Bend In South Bend, the retail market should see some positive impact occur following the completion of the Smart Street ǯȱȱȱȱęȱȱȱȱȱ ȱ take place in 2016, after its 2014 start, converting the main corridors of the Central Business District from one-way to two-way streets. The initiative is meant to improve safety and encourage economic development through changes in ȱ ¢ȱȱȱĚ ȱȱȱȱ ȱ South Bend. “ There is potentially $200 million in investment in downtown that is waiting in the wings for the street conversion project to be done and/or is contingent upon that ”project going forward. SCOTT FORD – EXECUTIVE VICE PRESIDENT, OPERATIONS & FINANCE, BRADLEY COMPANY 31

NORTH CENTRAL INDIANA | RETAIL Notable TransactionsSale CITY SF SALE PRICE P R I C E /S F OFF MARKET South Bend 31,035 $1,750,000 $56.39 Q3 ADDRESS 13,000 $850,000 $65.38 Q1 1801 South Bend Ave. Elkhart 4,000 $285,000 $71.25 Q1 2200 S. Main St. Elkhart 2311 Toledo Rd.Lease CITY COMP SF BUILDING SF TENANT OFF MARKET South Bend 29,619 ADDRESS Mishawaka 13,450 88,618 Fresh Thyme Market Q1 5514 N. Grape Rd. 13,450 Q1 3717 Grape Rd. Warsaw 12,000 12,000 DriveTime Car Sales Q4 Warsaw 6,000 184,000 Company Q2 3970 E. Corridor Dr. Elkhart 4,550 US 30 & Center St. Ste. 15 Airworx Construction 4536 Elkhart Rd. Ste. 1100 Equipment & Supply Workout Anytime 37,382 Panera Bread Q2 New Construction, Addition & Remodel ActivityOverall, for the North Central Indiana region, the retail Building Permit Total Valuebuilding permit values for 2015 totaled $58.3 million, $11million more than 2014, with the average retail building $50Mpermit value around $204,811 for the region. $40Męȱȱȱȱȱȱȱȱ$1.45 million remodel permits for the new Fresh Thyme $30MFarmer’s Market in Mishawaka, Martin Supermarket’s$1.23 million interior remodel permit for their store at $20MCollege Avenue in Goshen, Belle Tire’s $1.63 million newbuilding on Grape Road in Mishawaka, and the $1.5 $10Mȱ ȱȱȱȱȱ ȱěȱȱȱȱȱǯ $0 Elkhart Kosciusko St. Josephǯȱȱ¢ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ ȱȱȱ¢ȬȬ¢ȱǰȱǯȱȱ2015. Of the $58.3 million spent throughout the region, $45 ¢ȱ¡ȱȱȱęȱȱǻŘŚȱȱȱȱǯȱȱ¢ǯȱȱ¢Ȃȱ ǼȱȱȱȱȱȱȱŘŖŗŚȱȱȱȱ ȱǞşǯŞȱǰȱ ȱȱ¢ȱ ȱ ŘŖŗśǰȱ¢ȱȱȱȱǞŗřȱȱȱȦǞřǯŘȱȱ ȱȱȱȱȱŘŖŗśǯȱ ȱęȱ¢ȱȱ ǯȱȱ¢ȱ ȱȱǞŗȱȱȱȱŘŖŗŚȱȱȱ¢ȱ ¡ȱȱǞŞŖŖǰŖŖŖȱȱȱŘŖŗŚǯ32

NORTH CENTRAL INDIANA | RETAILGrowth & DevelopmentST. JOSEPH COUNTYMishawaka’s Wilshire Plaza had some new life breathed This year saw a lot of movement in the automotiveinto it in late 2015. The former home of Room Place is industry.now home to a new Fresh Thyme Farmers Market. TheChicago-based specialty grocer signed a long-term lease Basney BMW dealership on Indiana 933 in South Bendto occupy approximately 30,000 square feet. Just around completed a $1.7 million renovation in the fall.the corner, Sky Zone an indoor trampoline park, is nowopen in the 25,000-square-foot space facing Douglas Road. Best-One Tire moved into the 35,000-square-foot formerSky Zone features a main court freestyle area, foam zone, RV Indoor Showroom building at 2503 Cassopolis Street.basketball hoops and dodgeball courts. Belle Tire constructed a 10,000-square-foot facility at 2624Toscana Parkȱȱ ȱȱȱęȱȱ Cassopolis Street in Elkhart.of construction, after starting 10 years ago. Great LakesCapital completed two multi-tenant buildings along Belle Tire also expanded into South Bend. Belle Tire ȱȱȱȱȱȱȱȱęȱǯȱ ȱȱęȱȱȱȱȱǰȱȱAlong with the multi-tenant buildings, a four-story, 91- 10,000-square-foot full service center and warehouse onroom Holiday Inn Express is currently under construction. a Meijer out lot on Portage Road. Two other locations alsoThe entire development could be completed by mid- opened in this area, one on S. Michigan Street in Southsummer 2016. Bend and another on Grape Road in Mishawaka.Construction on phase two of Eddy Street Commons is Gurley Leep Honda is planning to spend $5 million toexpected to begin in 2016. Phase two will extend south on develop a 7-acre plot at 2345 Cassopolis Street in Elkhart.Eddy Street from Napolean Blvd. toward Indiana 23. Phase Construction on the 27,000-square-foot building could startone is nearly complete after Embassy Suites announced next spring, with an opening around late 2016 or 2017.that they will build a full-service hotel in the spring on theȱȱ ȱȂȱȱȱȱęȱȱ DriveTime Car Sales took tenancy in the former& Suites on Angela Blvd. Walgreens location at the corner of Grape and Edison Roads in Mishawaka. The 13,450-square-foot building is located at one of the busiest corners in St. Joseph County.> Eddy Street Commons, South Bend > Belle Tire, Mishawaka 33

With the region’s larger population base and abundance of universities and colleges, the region has seen a high level of interest from local and national investors looking to own and/or construct multi-housing properties in the region. NORTH CENTRAL INDIANA | MULTI-HOUSING> The Residences at Toscana Park, Granger Similar to previous years, St. Joseph County experienced a steady amount of new construction, remodel and investment activity in the multi-housing sector. With the region’s larger population base and abundance of universities and colleges, the region has seen a high level of interest from local and national investors looking to own and/or construct multi-housing properties in the region. As St. Joseph and Elkhart County continue to see high occupancy rates and increasing rental rates, investors will ȱȱȱȱȱȱĴȱȱ opportunities. As cap rates continue to compress and ȱȱȱęȱȱȱ¢ȱǰȱȱ ȱȱȱęȱȱȱȱ¢ȱ and tertiary markets will heat up. As the demand for higher-end apartment complexes continue to outpace ȱ¢ǰȱȱȱȱĴȱȱȱ become prime opportunities for investors.Conventional Multi-Housing 2015 StatisticsSt. Joseph # of Total Avg. Avg. Occ. Smallest Largest Earliest Latest Avg. YearCounty Properties Units Units Rate Property Property Year Built Year Built Built 12,386 45 275 96.4% 39 1,134 1911 2013 1975 5,430Elkhart County 31 175 96.7% 32 707 1963 2001 1982*Reporting on properties 30 units and above*Properties under construction as of 1/1/2016 were not included in the average occupancy rate and average year built calculations for St. Joseph County34

NORTH CENTRAL INDIANA | MULTI-HOUSING Rent & OccupancyOccupancy rates continue their steady increase year over Average Occupancy Rates \"#$%& '()&year throughout Elkhart and St. Joseph County. Despitenewer product like The Residences at Toscana Park in 100%Mishawaka coming online in 2013, St. Joseph County has 98%been able to maintain an occupancy rate of over 91 percent 96%ȱȱȱęȱ¢ǯȱWith a number of renovation projects and some new 94%construction projects happening in the region, we do not 92%expect occupancy rates to decrease, since there is such a 90%strong interest in these types of spaces.Rental rates in St. Joseph and Elkhart County for each unit 88% 2011 2012 2013 2014 2015type increased from the previous year. St. Joseph County 2010ȱȱȱęȱȱȱȱĴȱȱtwo and three bedroom units. Rental rates for those unit 2015 Average Rent by Unit Typetypes have increased over 30 percent since 2011. Some ofthis increase, while due to strong occupancy and supply $1,600– demand fundamentals, is also due to high end product $1,400coming online like the Residences at Toscana Park and the $1,200Foundry, which both have substantially higher rates. $1,000Even though rental rates in Elkhart County have remained $800fairly consistent year over year, we expect that they will $600increase in the coming years due to new developments $400such as Flaherty and Collins luxury apartments $200development in downtown Elkhart. $0 Studio 1 Bedroom 2 Bedroom 3 Bedroom \"#$%& '()&St. Joseph County – Rental Rates Elkhart County – Rental Rates$1,600 $800$1,400 $700$1,200 $600$1,000 $500$800$600 $400 $300$400 $0$200 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 \"!# ! \"!# \"!# \"!#! \"!# \"!# 35

NORTH CENTRAL INDIANA | MULTI-HOUSINGNotable TransactionsComplex Address Total Units Sale Price Price/UnitCastle Point Apartments 18011 Cleveland Rd., South Bend 740 $37,500,000 $50,676Park Jefferson 3001 E. Jefferson Blvd., South Bend 758 $32,000,000 $42,216The Pointe 307 E. LaSalle Ave., South Bend 202 $15,000,000 $74,257New Construction, Addition & Remodel ActivitySt. Joseph County continues to see the most activity in Building Permit Total Valuemulti-housing projects for the region. Since 2013, the totalvalue of multi-housing building permits issued increased $30Mover $25 million. In 2015 alone, $25.7 million worth wasissued. The majority of the $25.7 million comes from two $20Mprojects, Barak River Rocks new apartment complex indowntown Mishawaka, and the renovation work at LaSalle $10MHotel, worth $10.8 million and $8.3 million respectively.With several other new construction projects announced $0 2013 2014 2015for the region, like Grandview Flats and Townhomes,as well as Flaherty and Collins new downtown Elkhart \"#$%& '()&luxury apartments, we expect the total value to increasethroughout the region in 2016. ELKHART MARKET DISTRICT One of the 39 projects described in Northern Indiana’s Regional Cities Initiative is the development of Elkhart’s Market District near downtown Elkhart. The $127 million project includes relocating a shopping center, developing hundreds of new residential units, building a new community health facility, and establishing of a sports ȱȱȱȱȱęǯȱ > Proposed Elkhart Market District36

NORTH CENTRAL INDIANA | MULTI-HOUSINGGrowth & DevelopmentST. JOSEPH COUNTYCity of South Bend joined Great Lakes Capital in a public- Over $50 million worth of development is happeningprivate partnership to fund major renovations at the ȱ ȱ ȂȱĴȱǯȱȱ ȱhistoric JMS Building in downtown South Bend. The announced plans to construct condominiums, apartments$7.6 million project will transform the nearly-vacant, and a hotel/conference center on the vacant parcels near ȱȱȱŚŜȱǰȱ ȱȱĚȱ ȱǯȱȱǯȱȱȱȱȱǰȱȱȱȱȱĚȱȱȱĜȱǯ ȱ¡Ȭ¢ȱȱ ȱȱȱȱęȱĚǯȱȱ ęȱȱȱ¡ȱȱȱȱ¢ȱȱȱȱŘŖŗŝǯȱWork on the former LaSalle Hotel in downtown South Concurrently, Barak Group is managing another projectȱȱȱȱȱŘŖŗśǯȱȱȱȱ near downtown Mishawaka, Barak River Rock. The $15and Management is investing $7.5 million into the million project will include two buildings with an elevatedrenovation of the 81-year-old building. The former hotel is courtyard tucked between the two. The 73- unit luxurybeing converted into 67 market-rate apartment units – 51 complex, which work began on in January 2015, is expectedone bedroom apartments and 16 two-bedroom units – and to be complete by summer 2016.its ground and mezzanine levels repurposed into 8,000square feet of commercial space. Completion is expected in Construction began on Great Lakes Capital’s $100 millionNovember 2016. GrandView development in Mishawaka. The clubhouse for GrandView Flats and Townhomes is expected to ȱȱǰȱ ȱȱęȱȱȱȱȱ¢ǯȱ ȱȱȱȱ¡ȱȱȱȱȱ 180,000 square feet of retail and restaurant space, bringing ǰȱȬȬȱȱȱȱ¢ȱȱ ȱǯȱȱȱŚŜȬȱ ȱȱȱ expected to be completed by 2020.> GrandView, Granger 37

NORTHEAST INDIANAWhile the larger Northeast Indiana Region consists of several St. Joseph LaGrange Steubencounties, Allen County is the regional economic hub with the MarshallCity of Fort Wayne driving much of the regional economy. Allen ElkhartCounty covers approximately 660 square miles and is home to Kosciuskoover 14,000 businesses. The City of Fort Wayne is the secondlargest city in Indiana. Noble DeKalb Fulton Whitley Allen Wabash Huntington Wells Adams Miami Grant Blackford Jay DEMOGRAPHICS BY COUNTY 2015 2014 Feb. 2016 Population Households Median Household Labor Unemployment Income Force Rate 5.2%Allen 365,836 142,094 $50,273 175,530 4.5%Surrounding Counties 298,192 110,449 $49,402 148,139*Surrounding Counties: LaGrange, Steuben, Noble, DeKalb, Whitley, Huntington, Wells, Adams > Skyline Tower > Hagerman Group38

The Northeast Indiana region is positioning itself as a highly sought after location in the Midwest. The recent boom of new construction projects shows the need for quality space as new companies consider moving to the area.NORTHEASTINDIANA | INDUSTRIALALLEN COUNTY NOBLE COUNTYManufacturing in Allen County accounts for 19 percent North Ridge Industrial Park (65-acres), Ligonier Industrialof the current workforce and is home to prominent Park (107 acres), and Kendallville East Industrial Parkcompanies such as General Motors, Steel Dynamics, Vera (36 acres) are three properties that total over 200 acresBradley, BAE Systems, Fort Wayne Metals Research, and ȱȃęȱȱ¢ȄȱȱȱȱȱBF Goodrich. development.Located along Interstates 69 and 469 and U.S. Highways Manufacturing in Noble County accounts for over 5424, 30, 33 and 27, Fort Wayne is the transportation hub of percent of employment, with transportation equipmentNortheast Indiana. Combined, Vera Bradley, Sweetwater ȱȱȱȱĴȱȱȱ¢ȱȱSound, and Norfolk Southern employ over 1,500 people in ȱȱȱȱ¢ǯthe distribution and transportation industry for the City ofFort Wayne. STEUBEN COUNTYOther industrial sites in the county include Summit I & II Fremont Industrial Site (150 acres), Lone Hickory (316 acres), and the Samuels Property (114 acres) collectivelyIndustrial Park, Interstate Industrial Park, comprise over 580 acres of development-ready sites within Steuben County that have excellent access to InterstateWoodburn Industrial Park, Stonewall Industrial Park, 80/90.> Embassy Theatre Huguenard Industrial Park, Logistical network, solid infrastructure, interstate, Edgewood Industrial Park, railroad, and airport access for Steuben County are valuable assets for the strong and diverse manufacturing Congressional Park, and Freedom ȱȱȱȱŗŖŖȱȱęȱȱ ȱȱ county. Commercial/Industrial Park. ADAMS, WELLS, AND HUNTINGTON COUNTY LAGRANGE COUNTY ęȱȱȱȱěȬȱȱ The Fawn River Crossing Industrial Park Site and Ossian Industrial Park North and South in Wells ȱ ȱȱȱŗŗŚȱȱȃęȱ County, Decatur Industrial Park and Monroe Business Shovel Ready” site primed for future Park in Adams County, and Brickley I & II in Huntington industrial development. Sites within the park County. are set up with utilities and an access road, and are within close proximity to Interstate 80/90, Interstate 69, as well as a rail spur withconnectivity to the Norfolk-Southern Railyard. 39

NORTHEAST INDIANA | INDUSTRIALWHITLEY COUNTY “We see more spec buildings happening inGateway Industrial Park, Park 30 Business Center, and the region in the near future. In 2008-2009,Rail Connect Business Park are major industrial pocketslocated within Whitley County that are primed for future we recognized that we had little qualifieddevelopment. inventory buildings, so we started first withDEKALB COUNTY certified sites, and now we have 15 certified sites. It’s not about the quantity, it’s aboutȱ¢ȱěȱȱȃęȱȱ¢Ȅȱ the presence. Something we as a region haveindustrial sites, two rail lines, a Foreign Trade Zone endorsed, is that we have to move further outGeneral Designation, a HUB Zone designation, and easyȱȱ¡ȱȱ ¢ȱȱȱǯǯȱ ¢ǯȱȱExcellent infrastructures, low operating costs, and in the risk continuum if we’re going to be anabundant land are logistical advantages for DeKalbCounty. ”active market for your client and others. JOHN SAMPSON – PRESIDENT AND CEO NORTHEAST INDIANA REGIONAL PARTNERSHIP Available Square Feet2015 Available Square Footage Allen County saw a 4 percent decrease in availability % % %& % rates from the beginning of 2014 to the end of 2015.6M The surrounding counties’ availability rate maintained4M a steady rate of just below 4 percent. As suspected in 2014, due to the shortage of industrial inventory and2M an increased demand for industrial space in Northeast Indiana, 2015 saw an uptick in the amount of speculative/ build-to-suit opportunities throughout the region. We see this trend continuing throughout 2016.0 Surrounding Counties Allen CountyThe average amount of available industrial space in Allen Availability Rates \" # $ \" County during 2015 was approximately 4.9 million squarefeet, 900,000 square feet less than 2014. At the beginning 14%of 2015, Allen County had over 5.6 million square feet ofindustrial space on the market. Throughout the year, that 12%number decreased by 26 percent and ended the year justabove 3.8 million square feet. The remaining counties in 10%the Northeast Indiana region averaged 2.19 million squarefeet, 290,000 square feet more than 2014. Noble County 8%averaged the most marketed space for the surroundingcounties with 522,563 square feet. As a region, the amount 6%of space on the market decreased from the beginning of2015 to the end of the year. 4% 2% 0% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q1540

NORTHEAST INDIANA | INDUSTRIAL Asking RatesOver the past two years, asking rates for Allen County As the industrial space continues to tighten, and theȱ¢ȱ ȱǞŖǯŝŘȱȱŘŖŗŚȂȱęȱȱȱȱ ȱȱǰȱ¢ȱśŖǰŖŖŖȱȱŘŖŖǰŖŖŖȱȱǞŚǯŖŞȦȱǰȱȬȱǻǼǯȱȱ ȱȱȱ feet, continues to increase, we expect lease rates to increasedecrease in rates at the beginning of 2015, largely due to in the coming years. Landlords and sellers will havethe former Zollner Corporation complex, where multiple ȱȱȱȱ¢ǰȱȱěǰȱȱȱȱȱŘŜŞǰŖśŖȱȱȱ ȱȱǞŗǯśŖȦ market into a “landlord’s market,” where landlords canȱǰȱǯȱȱȱ¢ȱȱěȱȱ stay strong with their asking rental rates.ȱȱŚȱǰȱȱȱȱȱǰȱȱŘŖŗśȱȱǞŚǯŖśȦȱǰȱǯȱȱȱcounties maintained consistent asking rates, stayingȱǞřǯŖŖȦȱǰȱǯȱȱAsking Rates (PSF NNN) 2015 Average Asking Rates (PSF NNN)$5 \"# $\" MFG FLEX $4 Allen County $3.05 $3.32 $4.33$3 LaGrange County - - -$2 Steuben County -$1 Noble County $2.23 $3.06$0 DeKalb County $2.45 $3.81 $2.65 Whitley County $3 .58 $1.76 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Adams, Wells, - $5.17 $3.58 Huntington County $1.31 - $3.03 $1.88 > Park 30 Spec Building Rendering, Columbia City > Rail Connect Spec Building, Columbia City 41

NORTHEAST INDIANA | INDUSTRIAL Notable TransactionsSale CITY SIZE SF SALE PRICE P R I C E /S F OFF MARKET Fort Wayne 862,450 $18,040,000 $20.92 Q2 ADDRESS Fort Wayne 414,113 $14,000,000 $33.81 Q3 3405 Meyer Rd. 347,517 $13,894,633 $39.98 Q1 1320 Production Rd. Howe 108,168 $6,365,000 $58.84 Q1 8055 N. SR 9 Fort Wayne 239,950 $5,500,000 $22.92 Q1 7614 Opportunity Dr. Fort Wayne 90,622 $4,580,000 $50.54 Q2 1919 W. Cook Rd. Fort Wayne 72,900 $3,800,000 $52.13 Q3 6509 Moeller Rd. Hamilton 51,844 $2,150,000 $41.47 Q4 2855 E. Bellefountaine Rd. 1400 W. Wiley Bluffton COMP SF BUILDING SF TENANT OFF MARKET 764,177Lease CITY 60,444 764,177 AM General LLC Q4 Fort Wayne 54,141 ADDRESS Fort Wayne 1,400,000 Berne Apparel Q2 2909 Pleasant Center Rd. Fort Wayne Company 2701 Coliseum Blvd. 3619 Centennial Dr. 54,141 MJC Acquisitions Q2 New Construction, Addition & Remodel ActivityThe total value of industrial building permits issued Building Permit Total Valuefor Northeast Indiana increased 77 percent from 2014 to2015. This is largely due to the General Motors expansion $70Min Fort Wayne, where $335 million of the $382 million $60Mwas designated. Steuben County saw an uptick in their $50Mȱǰȱ¢ȱĴȱȱȱǱȱȱȱ $40Mbuilding expansion for FedEx ($4.9 million), an addition $30Mfor Midway Products ($4.4 million), and a storage/cooler $20Maddition for Miller Poultry ($1.8 million). $10M $0 2015 2014 $\" \"#42

NORTHEAST INDIANA | INDUSTRIALGrowth & DevelopmentALLEN COUNTYGeneral Motors is investing $1.2 billion to upgrade and Transpoint Intermodal, LLC is constructing a $17 million¡ȱȱȱ¢ȱ¢ȱȱȱŗŘŘŖŖȱ¢Ĵȱ “intermodal” facility on 62 acres of land on Fort Wayne’sCenter Road in Roanoke. Plans include a 1.5 million- east side. Transpoint purchased the land on Adams Centersquare-foot expansion, more than doubling the plant’s Road from the Fort Wayne Redevelopment Commission incurrent size, as well as a new pre-treatment facility and July. The facility is expected to be operational by June 2016,an expanded body shop, all while reducing the plant’s creating approximately 20 new jobs.ȱȱȱȱ¢ȱĜ¢ǯȱȱȱȱupgrades began in June 2015 and will take several years to Construction is nearing completion for the Persistencecomplete. Park Spec Building II at 2677 Persistence Drive. The 60,000-square-foot, expandable to 130,000 square feet,In September, BAE Systems unveiled their new $39 million industrial building will have 31.5 to 34 foot clear ceilingstate-of-the-art production facility in Fort Wayne. BAE heights. The building will be available second quarter 2016.Systems broke ground on the 334,000-square-foot facility,located on Airport Expressway, in May 2014. BAE Systemswas able to retain over 1,000 jobs at its Fort Wayne facility.Connecticut-based XPO Logistics Worldwide isconstructing a 400,000-square-foot warehouse/distributionfacility in southwest Allen County. XPO is investing$26.3 million in the 24-acre site, located just north of theGeneral Mills 1.5 million-square-foot distribution center.Construction is expected to be completed by third quarterŘŖŗŜǰȱȱęȱȱȱ¢ȱȱȱ¡ȱȱbe completed until 2019.The Hagerman Group is in the process of constructing > Persistence Park Spec Building II, Fort Waynea shell building on 15.7 acres of land they own on thenorthwest corner of the intersection of Airport Expressway DEKALB COUNTYand Avionics Drive. Working collaboratively with FortWayne’s Community Development Division, the shell Door manufacturer Therma-Tru Corp. is looking tobuilding’s initial footprint will be approximately 67,000 expand its operations into the City of Butler. The Ohio-ȱǰȱ ȱĜȱǻŗȱĚǼǰȱȦ based company announced plans for a $20 millionprocessing, and logistic uses, with at least 30 foot clear expansion that could result in more than 100 additionalheights. The overall size of the building could expand jobs to the area.to approximately 330,000 square feet. Construction isscheduled to be completed by the end of calendar 2016. STEUBEN COUNTY Carver Non-Woven Technologies is undergoing renovations to its new production facility at the former 143,580-square-foot Amcast Automotive plant in Fremont. A subsidiary of R3 Composites Corp., Carver is investing $17.1 million in equipment and renovations, with plans to employ up to 65 people by 2018. Production is expected to be underway by second quarter 2016. > Hagerman Group, Fort Wayne 43

NORTHEAST INDIANA | INDUSTRIALWHITLEY COUNTYDeveloper 30 Spec Realty, LLC constructed a The Town of Avilla has begun the process of annexing16,000-square-foot industrial shell building in the Whitley and doing prep work for an 81-acre plot of land east ofCounty’s Park 30 Business Center. The “shovel ready” ȱȱřȱ¢ȱȱȱŘŖŗśǯȱȱȱȱȱęȱȱȱȱȱȱȱȱȱȱ an industrial park with the land. The town is consideringU.S. Highway 30. The shell building, which sits on 2.36 ȱȱ ¢ȱȱȱĴȱȱȱȱacres, is the fourth shell building to be developed at Park to the property as possible.30 Business Center since its inception in 1996. HUNTINGTON COUNTYGround was broken for Restoration Medical PolymersLLC’s new corporate headquarters and manufacturing Novae Corporation opened their new 73,000-square-footfacility in Whitley County. The company is investing up manufacturing facility at the Markle Industrial Park into $7.1 million to construct a 36,000-square-foot facility. ȱŘŖŗśǯȱǰȱȱȂȱȱȱ¢ȱOccupancy of the new facility is expected for late 2016, trailer manufacturer, invested approximately $5.9 millionwith production starting in early 2017. into their new facility. Novae employs more than 350 people in northern Indiana, and the new facility is Novae’sConstruction for the Rail Connect Spec Building in 4th facility in northeastern Indiana since 2005.Columbia City is complete. The 75,000-square-foot specbuilding spans across 14.77 acres, allowing for the building LAGRANGE COUNTYto be expandable to 199,500 square feet. The buildingfeatures a 27’ clear ceiling height, 4 docks, 2 overhead Snax in Pax, a producer of gourmet caramel corn anddoors, and ample parking. fudge, invested $3.8 million to construct and equip a 27,000-square-foot addition to its Topeka facility. Due toNOBLE COUNTY the expansion, 21 new jobs are expected to be created by 2017.Hendrickson USA, a manufacturer of suspension partsand systems for the heavy truck and bus industry, ADAMS COUNTYcompleted the construction of a 57,600-square-footaddition to their facility at 220 S. Progress Drive West FCC (Adams) LLC is investing $128.59 million to expandin Kendallville. Hendrickson invested $11.3 million to and equip its 295,000-square-foot facility in Berne. FCCconstruct the addition, as well as the installation of new ǻǼȱȱȱŗŚŖǰŖŖŖȱȱȱȱȱȱequipment in their second plant at 101 S. Progress Drive facility. Due to the expansion, the automotive componentsWest in Kendallville’s East Industrial Park. The move is manufacturer is expected to create up to 73 new jobs.expected to create up to 41 new jobs by 2019.> Rail Connect Spec Building, Columbia City44

The office sector throughout Allen County is slowly gainingmore and more traction as new companies begin to reside in thearea. New projects such as Ash Brokerage and Skyline Plaza areincreasing the momentum in the downtown area.NORTHEASTINDIANA | OFFICECITY OF FORT WAYNE ęȱĜȱȱȱȱȱ ǭȱȱǰȱȱȱĜȱǰȱȱȱȱȱ¢ȱĜȱȱȱȱ¡¢ȱ ĜȱǰȱȱȱȱĜȱǰȱȱŗŘǯşȱȱȱȱȱǯȱȱ¢ȱȱ¢ȱ ȱĜȱǰȱ ȱȱȱǭȱȱ¢ȱȱ¢ȱǱȱǰȱ ȱĜȱǰȱȱȱǰȱ¡ȱ ǰȱǰȱ ǰȱȱ ȱ ȱ ǰȱ¡ȱ¢ȱȱǰȱȱřŖŖŖǰȱȱǯȱȱȱȱȱĜȱȱȱȱȱ¢ȱ ȱǯȱȱȱȱȱĜȱȱȱȱǯȱȱȱ¢ȱȱȱȱȱȱȱȱȱĜȱȱȱȱȱǯȱęȱĜȱȱȱȱȱȱȱǰȱ ȱǰȱȱȱ ǰȱȱȱȱȱǻǼǰȱȱǰȱȱǰȱȱ¢ǰȱȱǰȱȱ¢ǰȱȱǰȱ¢ȱ¢ǰȱǯǰȱȱȱ¢ǯ Available Square Feet ȱȱȱȱĜȱȱȱȱ¢ȱȱȱ ¢ȱȱŘŖŗśȱ ȱ¡¢ȱřŞřǰŘŘŘȱȱǯȱ2015 Available Square Footage ȱȱŘŖŗŚǰȱȱȱȱŗŘǰŖŖŖȱȱȱ ȱ ȱȱȱŘŖŗśȱȱȱŘŖŗŚǯȱȱ ȱȱ600K ȱȱȱȱȱȱȱȱŘŖŗśȱ ȱ śŖŞǰŚŜşȱȱǰȱ ȱȱȱȱȱ400K ȱȱȱ ȱŗŖŚǰŖŘŜȱȱǯȱȱȱȱȱ200K ȱŘŖŗŚǰȱȱ¢ȱȱȱĜȱȱȱ ȱȱ¢ȱȱȱǰȱȱ 0 ŘŖŗśȱȱȱȱŗŘȱǯȱȱ¢ȱȱȱ CBD Northeast Northwest Southeast Southwest ȱȱȱȱȱȱ¢ǰȱ ¢ȱȱȱȱȱȱȱŗŝŖŖȱ¡ȱ % % %& % ¢ȱ¢ȱȱȱȱȱȱ¢ȱȱ ǯȱȱȱ 45

NORTHEAST INDIANA | OFFICEAvailability rates are continuing their overall nominal Fort Wayne Quadrant Mapdescent, with slowly increasing rental rates and lengthierȱǯȱȱȱȱȱęȱ NWcontinues to moderate and local companies start to hireȱ¢ǰȱȱȱ¡ȱȱĜȱȱ ȱȱȱȱȱ ȱȱĚȱȱŘŖŗŜǯȱȱ¢ǰȱ ǰȱȱěȱ¢ȱȱ ȱĜȱȱȱȱ ȱȱǻȱProject) and the vacancy of the former ITT space in thenorthwest quadrant. NEAvailability Rates CBD16% SW SE14%12%10% 8% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 !\" #$% Asking Rates 2015 Average Lease Asking Rates (FSG) - Class Aȱǰȱȱȱȱȱȱȱȱȱ¢ȱ Q1 Q2 Q3 Q4hovered around $15.93/square foot, full service gross,¢ȱȱǞŖǯŝŝȱȱȱŘŖŗŚǯȱȱȱȱȱȱ Central Business District $15.90 $16.00 $15.41 $16.05ȱȱȱ¢ȱȱ¢ȱȱŘŖŗŚȂȱȱ Quadrants $15.65 $15.62 $16.39 $16.46ȱǞŗŘǯśŗȱȱŘŖŗśȂȱȱȱǞŗŘǯŖŝȦȱǰȱȱȱǯȱȱȱȱȱȱȱȱȱȱ 2015 Average Lease Asking Rates (FSG) - Class Bin 2015 was lower than 2014, asking rates ended the year atǞŗŘǯŚŝǰȱ ȱȱȱȱȱȱǞŗřǯŘřǯGoing forward, with the recent activity and interest in Central Business District Q1 Q2 Q3 Q4ȱ ȱȱ¢ȱǰȱ ȱȱȱ Suburban $12.64 $12.66 $12.83 $13.23 ȱȱȱȱȱȱŘŖŗŜǯȱȱȱ ȱ $11.12 $11.57 $10.84 $11.72Ĝȱȱȱȱȱǰȱȱ ȱcontinued slow-but-steady absorption may also help pusha trend for increased asking rates.46

NORTHEAST INDIANA | OFFICELease Asking Rates (FSG) - Class A Lease Asking Rates (FSG) - Class B$18 $18$16 $16$14 $14$12 $12$10 $10$8 $8 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15!\" #$% !\" #$%Notable TransactionsSale SIZE SF SALE PRICE P R I C E /S F QUADRANT OFF MARKET 67,640 $3,850,000 $56.92 ADDRESS 24,789 $1,300,000 $52.44 NW Q3 5,500 $525,000 $95.45 9910 Dupont Circle Dr. E. 7,833 $416,000 $53.11 CBD Q4 Fort Wayne NW Q1 130 W. Main St., Fort Wayne NE Q1 9925 Coldwater Rd. Fort Wayne 6008 Brandy Chase CV. Fort WayneLease COMP SF BUILDING SF TENANT QUADRANT OFF MARKET 70,747 355,012 SW Q1 ADDRESS 231,211 Revenue Cycle 28,856 16,000 Service Center, CBD Q3 1700 Magnavox Way, 16,000 NW Q2 Fort Wayne 10,124 LLC 6,729 9602-9604 Coldwater Rd. Faegre Baker Fort Wayne Daniels 110 W. Berry St., Fort Wayne Tri State Medical Group 6619 Brotherhood Way, Fort Wayne 27,800 Attero Tech, LLC NW Q3 1315 Directors Row, Fort Wayne 25,143 Indiana Tax NW Q3 Advisory Group 47

NORTHEAST INDIANA | OFFICE New Construction, Addition & Remodel ActivityȱȱȱȱĜȱȱȱȱȱ Building Permit Total Value \"#$%# &\"ȱȱȱȱǞŗŘȱȱȱŘŖŗŚȱȱŘŖŗśǯȱȱȱ¢ȱȱȱȱȱ¢ȱ£ȱȱ $80M ȱȱ¢ǰȱ ȱȱȱȱŘŖŗśȱȱȱĜȱȱȱȱ¡Ȭȱǯȱȱ $60M¢ǰȱȱşŖȱȱȱĜȱȱȱȱȱȱȱ ȱȱ ȱȱ¢ȱȱȱ $40M¢ǯȱȱęȱȱȱȱŘŖŗśȱ ȱȱȱǞŜȱȱ ȱȱȱȱȱȱ $20Mȱȱ ȱȱȱȱŗŗŖȱǯȱ¢ȱȱȱ ȱȱ¢ǯȱ $0 2015 2014 Growth & DevelopmentALLEN COUNTYRecently announced, Great Lakes Capital will be Construction is nearing completion for Ash Brokerage’sconstructing a 12-story, $40 million residential, retail and ȱȱȱ ȱȱ¢ǯȱĜȱȱȱ ȱȱ ȱȱSkyline Towerǯȱȱ ȱȱȱŞȬ¢ǰȱşśǰŖŖŖȬȬȱȱ¡Ȭȱȱ ȱȱȱȱ¢ȱ ¢ȱ£ȱȱȱȱȱŘŖŗŚǯȱȱǰȱ ȱ£ȱȱ¢ȱ ȱǯȱ ȱȱȱȱ ȱȱǞŘşȱȱȱȱǰȱ ȱ¢ȱȱĜȱ¢ȱ¢ȱȱȱȱȱȱ ȱȱȱĚǯȱȱ ȱȱȱȱĜȱȱŗŗŗȱǯȱ ȱǰȱȱȱȱĚȱĜȱ ȱǰȱȱ¢ȱȱȱ¢ȱȱǞřşȱȱȱǰȱȱ¢ȱŝŖȱȱȱȱȱ¢ǯȱ ȱȱŗǰŖŝŝȬȱȱǰȱȱ ȱȱȱȱǰȱ¢ȱ ȱ ȱȱ¡¢ȱ ȱǰȱȱȱǰȱȱȱȱǯȱȱŗŝŖǰŖŖŖȱȱȱȱȱȱ¢ȱȱŜŖȱ ȱǯ ȱȱ¡ȱȱ¢ȱȱȱŘŖŖȱȱȱ ȱȱȱȱȱȱ ȱǯȱ “ This project is the quintessential model of a public-private partnership with businesses and the community coming together to create a project that truly moves the needle for the region as it elevates the landscape of Fort Wayne’s ”downtown. BRAD TOOTHAKER – PRESIDENT & CEO BRADLEY COMPANY> Skyline Tower, Fort Wayne48

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2015-2016 Annual Market Study

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2015-2016 Annual Market Study

Description: The Bradley Company Annual Commercial Real Estate Market Study! Learn valuable insights in changing markets and make informed commercial real estate decisions with the highest quality information available.

Keywords: Commercial Real Estate

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