2020 Industrial Market Report PALM BEACH 2Q 2020

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2020 Market Data Report PALM BEACH COUNTY INDUSTRIAL

Market experts

TABLE OF CONTENTS

Christopher Thomson, SIOR Executive Director +1 561 227 2020 christopher.thomson@cushwake.com Cushman & Wakefield Tenure: 20 years

Chris Metzger, SIOR Executive Director +1 954 938 2608 chris.metzger@cushwake.com Cushman & Wakefield Tenure: 35 years

AT THE CENTEROF WHAT’S NEXT

DRIVERS 5

Rick Etner, SIOR Executive Director +1 954 938 2607 rick.etner@cushwake.com Cushman & Wakefield Tenure: 30 years

KEY INDUSTRIAL

Matthew McAllister Director +1 561 227 2018

PALM BEACH COUNTY MARKET OVERVIEW 9

matthew.mcallister@cushwake.com Cushman & Wakefield Tenure: 5 years Industry Experience: 14 years

Merritt Etner Senior Associate +1 954 377 0480 merritt.etner@cushwake.com Cushman & Wakefield Tenure: 5 years

HISTORICAL ABSORPTION 12

Alex VanDresser Associate +1 561 227 2067 alex.vandresser@cushwake.com

SALES 18 LAND SALES 20

BUILDING

Team support

Julie Miller Senior Brokerage Coordinator +1 954 377 0461 julie.miller@cushwake.com Cushman & Wakefield Tenure: 7 years Industry Experience: 19 years

Uilani Kauhi Brokerage Coordinator +1 954 377 0484 uilani.kauhi@cushwake.com Cushman & Wakefield Tenure: 20 years

2 | PALM BEACH COUNTY

INDUSTRIAL MARKET REPORT | 3

2019 KEY INDUSTRIAL DRIVERS

ECONOMICS Palm Beach County continued to see solid job growth numbers, expansion by existing tenants and attract new tenants to the market throughout 2019.

eCOMMERCE Expectations are high that additional sites will be taken down by eCommerce companies looking for “Last Touch” facilities close to end customers.

QUALITY Demand by tenants for larger bay options and efficient options provides incentives for new construction.

LAND Large parcels of land were available in Palm Beach County throughout 2019, but location was key to buyers and tenants for site selection.

INVESTOR SALE activity for industrial product in Palm Beach County reached a 10-year high in 2019 with over 1.8 msf sold. Warehouse/Distribution product accounted for most sales with approximately 1.5 msf sold, or 81% of all sales. The West Palm Beach submarket had the most activity with over 1.0 msf sold in 2019.

DEMAND Overall net absoption trended upward with over 288,000 SF absorbed in 2019, a 121.2% increase YOY.

CAP RATES Cap rates have increased slightly in 2019 from historic lows recorded in 2018 on significant increases in new construction.

4 | PALM BEACH COUNTY

INDUSTRIAL MARKET REPORT | 5

Q2 2020 CUSHMAN & WAKEFIELD MARKETBEAT The arrival of the COVID-19 pandemic has created an economic shock that has likely pushed the global economy and the U.S. into recession. Policies initiated to “flatten the curve” of potential infection include the voluntary and mandated shutdown of large sectors and regions of the economy. Retail establishments, restaurants, passenger transportation, schools and leisure activities have almost all grinded to a halt while customers self-quarantine and practice social distancing.

PALM BEACH COUNTY MARKET OVERVIEW

Employment PalmBeach County, part of the South Florida region, had an unemployment rate of 14.1% in May 2020, down 10 basis points (bps) from the previous month but up 1,100 bps higher than one year ago. Nonagricultural employment was 569,900, a decrease of 71,300 jobs,or 11.1%, over the year. Every major employment sector forfeited jobs. Over 40%were lost in the Leisure & Hospitality sector, at 45,500 jobs gone. Construction and Manufacturing sectors lost 700 and 600 jobs respectively. The COVID-19 pandemic struck the U.S. in March 2020, late in the quarter but with enough time to have a significant impact on first quarter market fundamentals. In the second quarter of 2020, the U.S. economy felt its effects more fully, as government- mandatedshutdowns along with shelter-in-place ordinances pushed the country deeper into recession. The situation remains very fluid. To view our latest perspective on the coronavirus and its potential impact on CRE and the economy, access Cushman &Wakefield’s COVID-19 resource page. Market Supply The PalmBeach County industrial market remained tight as overall vacancy ended the second quarter at 3.2%, a slight decreaseof20 bps from a year ago. Overall vacancy in warehouse/distribution fell by 10 bps year-over-year (YOY) to 3.5%. Only one building

Market Pricing Overall rental rates slightly decreased as demand slowed in the second quarter. Triple net asking rents for the industrial market decreased by less than 1.0% YOY to $10.66 per square foot (psf). Rental rates in warehouse/distribution experienced a drop of 1.8% to $9.74 psfin the last 12 months. The Boca Raton and West Palm Beach submarkets were the only submarkets where rates increased YOY with theWest Palm Beach submarket escalating the most to $10.64 psf, or an 11.1% increase. Market Demand Second quarter new leasing activity reached 86,000 square feet (sf), the lowest amount for a quarter in the last 3 years. Demandsaw a significant decline in the second quarter as it accounted for only 12% of the total YTD. The Boca Raton submarket had the most activity out of any submarket in the quarter with 43,000 sf signed, or 50% of total activity. Niagara Bottling had the largest transaction YTD, signing for 114,000 sf in the Jupiter submarket. Tenant move-ins, specifically in warehouse/distribution during the second quarter, added to positive absorption levels in the first six months with over 186,000 sf YTD.

totaling 161,000 sf delivered year-to-date (YTD) in theWest PalmBeach submarket that was 100% preleased by SWI Solutions. Another 1.0msfwas under construction with 0% preleased. Vacant sublease space remained very low, significantly less than 1.0% of overall inventory.

6 | PALM BEACH COUNTY

INDUSTRIAL MARKET REPORT | 7

PALM BEACH COUNTY MARKET OVERVIEW

Port of PalmBeach The Port of Palm Beach is a full-service, diversified landlord port that provides services through its private-sector partners and is responsible for facilitating economic development within Palm Beach County, the region, and the state of Florida. The 162-acre port is located 80 miles north of the city of Miami and has a 300-foot wide inlet channel, with no aerial obstructions. The port has three slips, seventeen berths, and four roll on/roll off ramps for 6,500 linear feet of berthing space to accommodate vessels up to 700 feet long and 100 feet wide. The port’s berthing is 20 minutes from the first sea buoy to anchorage, with operating drafts of minus 33 feet mean low water (MLW). The non-union labor force and easy access to I-95 and Florida’s Turnpike allow for seamless, cost-effective cargo handling. The Port of Palm Beach is an important distribution center for commodities being shipped all over the world, and especially the Caribbean Basin. Operations include containerized, dry bulk, liquid bulk, break bulk, roll on/roll off and heavy-lift/ project cargoes. Palm Beach is the only port in South Florida with on-dock rail today. Florida East Coast Railway provides twice-daily service to the port’s rail interchange. The port owns and operates a locomotive and five miles of track. The industrial switching operation is capable of handling box, hopper and double-stack rail cars, with 24/7 operations. Rail operations accommodate 20-axle rail cars, with 450-ton capacity. EMPLOYMENT The Port of Palm Beach and its tenants combine to be one of the larger employers in Palm Beach County and is an economic engine for the county. Approximately 2,800 people are employed directly because of the port, which contributes $260 million in business revenue and $12 million in state and federal taxes. An additional 6,000 jobs are associated with the importers and exporters that use the port to ship cargo. Over $7 billion worth of commodities moves through the port each year. PORT OPERATIONS The Port of Palm Beach is the fourth busiest container port of Florida’s 14 deepwater ports and is the 18th busiest container port in the United States. In financial year 2018, the port moved over 292,304 20-foot container equivalent units. EXPORTS The port also handles diesel fuel, molasses, liquid asphalt, and other bulk commodities. There is also substantial tonnage involved in the movement of heavy lift and project cargos. All of this happens in a port that has only 156 acres of land. Unlike most ports in the United States, the Port of Palm Beach is an export port, with approximately 80% of its cargo being exported, with the subsequent improvement in the balance of trade. The majority of the exported cargo goes toward supporting the island nations of the Caribbean. The Port of Palm Beach supplies 60% of everything consumed in the Bahamas and is the essential lifeline to the rest of the Caribbean. 100% of the exported raw sugar that is produced in the Glades area, almost 900,000 tons, is shipped through the Port of Palm Beach.

6.5 MILES Rail

121 Cargo Vessels

2,567,393 Cargo Short Tons

20,048 Rail Cars

27,705 Recyclable Steel Short Tons

462,533 Cruise Ship Passangers

282,304 TEU’s

118,191 Liquid Asphalt Short Tons

Source: portofpalmbeach.com 2018 Fact Sheet

The majority of the market went sub 3% vacancy in the 1st quarter of 2020. Due to the pandemic hitting the 2nd quarter, market activity was soft in April and May. Activity has picked up in June with deal velocity to increase as we go into the fall to finish out the year strong.

- Christopher Thomson

Source: portofpalmbeach.com

8 | PALM BEACH COUNTY

INDUSTRIAL MARKET REPORT | 9

6.7M Domestic & International Passengers

2.3B Visitor Spending

48,000 Airport Jobs

183,500 Aircraft Operations

PalmBeach International Airport Palm Beach International Airport, centrally located in West Palm Beach, is one of the largest medium-hub airports in the United States. PBIA underwent a major $150 million expansion in 1988, with a new state of the art terminal building dedicated as a truly superb example of a user friendly, congestion free, modern airport, and including the construction of a new 560,000-square-foot terminal with 28 gates and the potential for 24 more in the future. The 560,000 square foot terminal includes a concession mall which runs the length of the building. Other features include three passenger concourses and holding areas. A new beautifully landscaped roadway system leads to separate levels at the terminal for arriving and departing passengers. Palm Beach International Airport is conveniently located to serve the air trade area of Palm Beach County and the four surrounding counties. The airport is located 2.5 miles west of downtown West Palm Beach and just 3.5 miles west of Palm Beach. PBIA is situated adjacent to I-95 and is accessible from anywhere in Palm Beach County. Boca Raton is approximately 20 miles south and Jupiter is only 15 miles north. Palm Beach international Airport has 1,100 short term parking spaces and 5,500 long term spaces and over 3,000 Park and Ride spaces. A major new feature is the Customs and Immigration facility which is capable of handling 300 passengers per hour and aircraft up to the size of B747-400, private aircraft maintenance, air cargo and international air. Twenty airlines currently offer scheduled flights from PBIA to destinations throughout the continental United States, and direct international flights are available to the Bahamas and Canada. On average, more than 6 million people a year pass through PBIA. Commercial airlines, including commuter aircraft, fly in and out of the airport about 70,000 times a year. General aviation, freight and other flights average nearly 113,500 a year, Approximately 19,000 tons of cargo pass through PBIA annually. Palm Beach County also offers three local commercial/executive airports: • Glades Airport is Palm Beach County’s designated recreational airport, located three miles southwest of Pahokee and 35 miles west of West Palm Beach. It is popular for flight training for both fixed wing and helicopters. Glades Airport is also designated to support FAR 105 Parachute Operation. • Palm Beach County Park Airport (LNA) is located in Lantana and is six miles south of PBIA. LNA is a reliever airport focusing on the general aviation reciprocating and turbine driven aircraft. LNA is a busy airport with a mix of both fixed-wing and helicopters, and six runways. • North County General Aviation Airport (F45) is set on 1,832 acres, with over 1,100 being dedicated to environmental preserves that surround the airport. It is a designated reliever for PBIA and serves both reciprocating engine and jet aircraft.

$6B Economic Impact

19,000 Cargo Tons

Source: pbia.org

The Industrial market was stagnant for March and April. Covid 19 caused many companies to hit the pause button on their expansion

needs. Toward the end of May, prospects started peeking out from under their blanket. In June, we started to see a good pick up in property showings, request for proposals, and lease negotiations. We feel the pent demand for space will explode once we get past the initial fear of the virus and the economy fully opens back up. - Chris Metzger

10 | PALM BEACH COUNTY

INDUSTRIAL MARKET REPORT | 11

HISTORICAL ABSORPTION

VACANCY & RATES • The overall industrial vacancy rate decreased by 10 bps YOY to 3.4% at the end of the first quarter of 2020. • Overall asking rental rates increased 7.0% YOY to $10.74 per square foot (psf).

HISTORICAL ABSORPTION PAST 5 YEARS • Industrial net absorption from 2015 to 1Q20 in Palm Beach County reaches over 3.4 msf • YTD overall net absorption totals 163,700 sf

Manufacturing 7,413,625

ENE OF YEAR TOTAL NET SF ABSORBED 2010 501,994 SF 2011 181,179 SF 2012 139,716 SF 2013 493,767 SF 2014 192,477 SF 2015 1,015,304 SF 2016 707,815 SF 2017 559,636 SF 2018 148,661 SF 2019 106,613 SF 1Q 2020 198,653 SF

Palm Beach Co. Overall Market Breakdown

Office Services 6,300,625

Warehouse/ Distribution 28,573,899

12 | PALM BEACH COUNTY

INDUSTRIAL MARKET REPORT | 13

LAND USE MAP

SPECULATIVE DEVELOPMENT SNAPSHOT

Martin County Palm Beach County

Tequesta

Jupiter InletColony

IndiantownRd

Bee LineHwy

SUsHighway 1

Jupiter MilitaryTrl

AlexanderRun

JupiterFarmsRd AlexanderRun

JupiterFarmsRd

PrattWhitneyRd

SAlternateA1a

y 44 1

SAlternateA1a

y 44 1

N Interstate 95

JunoBeach

g h w a

JunoBeach

g h w a

Lake Okeechobee

U s H i

Lake Okeechobee

d R

U s H i

d R

PalmBeachGardens

PgaBlvd

A l t e r n

PgaBlvd

A l t e r n

t e

A 1 a

ConnersHwy

NorthPalmBeach

ConnersHwy

NorthPalmBeach

SFloridasTpke

Pahokee

MuckCityRd

NorthlakeBlvd

MuckCityRd

NorthlakeBlvd

LakePark

WAREHOUSE & DISTRIBUTION 4.9 MILLION TOTAL SF DELIVERED SINCE 2015

UNDER CONSTRUCTION 990,000 TOTAL SF TO BE DELIVERED THROUGH 2020

TempleBlvd

CoconutBlvd

RivieraBeach

OrangeBlvd

PalmBeachShores RivieraBeach

OrangeBlvd

PalmBeachShores

HattonHwy

N JogRd

HattonHwy

N JogRd

60thStN

45thSt

MangoniaPark

Westlake

WestPalm Beach

o ad 1 5

Broadway

WSycamoreDr

Broadway

B l vd

WSycamoreDr

B l vd

RoyalPalmBeachBlvd

o g

e s B lvd Vill a ge

o g

Vill a

t e

t a

BeachL a

e s B lvd

StateRoad 80

t a

BeachL a

StateRoad 80

BanyanBlvd m

BanyanBlvd

NCountyRd

Pal

StateRoad 715

Pal

StateRoad 715

LoxahatcheeGroves OkeechobeeBlvd

Royal PalmBeach

WestgateAve

PalmBeach

WestgateAve

NHaverhillRd

PalmBeach

NHaverhillRd

ParkPl

s High

ParkPl

s High

GatorBlvd

y 2

GatorBlvd

y 2

Bel ve dereRd

Haverhill

DrexelRd

BelleGlade

Haverhill

DrexelRd

BelleGlade

SeminolePrattWhitneyRd

SouthernBlvd

GunClubRd SouthernBlvd

CountyRoad 880

GunClubRd

Cloud Lake

SamSenterRd

GlenRidge

i g B l

GlenRidge

i g B l

SummitBlvd

u e

ParkerAve

u e

KirkRd

ParkerAve

SouthBay

KirkRd

T r

SouthBay

T r

SOliveAve

r est Hil lBlvd

c e

LyonsRd

Fo LyonsRd

SOliveAve

r est Hil lBlvd

c e

PurdyLn

LakeClarkeShores

PurdyLn

Wellington

v d

n bria r

LakeClarkeShores

Wellington

v d

n bria r

Gre e

Str i

PiersonRd

gW a y

PiersonRd

gW a y

PalmSprings

DudaRd

10thAveN

DudaRd

S JogRd

10thAveN

S JogRd

Greenacres

Atlantic Ocean

LakeWorthBeach

CountyRoad 827a

L ak e Worth R d

Atlantic Ocean

LakeWorthBeach

Hendry County

CountyRoad 827a

L ak e Worth R d

DavisRd

Palm Beach County Hendry County

DavisRd

6thAveS

o ad827

6thAveS

C o unty

o ad827

C o unty

Palm Beach County

PalmBeach

Atlantis

LyonsRd

LantanaRd

SouthPalmBeach

LantanaRd

SouthPalmBeach

Lantana

NFloridasTpke

HypoluxoRd NFloridasTpke

HypoluxoRd

BrownsFarmRd

Manalapan Hypoluxo

S Inter s t a t e9 5

L e

S Inter s t a t e9 5

Chale t

L e

Chale t

e wa y

Blv d

G at

e wa y

Blv d

G at

NCongressAve

OceanRidge NCongressAve BoyntonBeach

BoyntonBeachBlvd

BoyntonBeach BoyntonBeachBlvd

OceanRidge

PROPOSED 870,00

S JogRd

BrinyBreezes

S M ilitaryTr l

Golf

S M ilitaryTr l

Golf

E l C l a irRanchRd

HagenRanchRd

Gulf Stream

SCongressAve

Gulf Stream

SCongressAve

SStateRoad 7

L akeI

Ne 2ndAve

TOTAL SF PROPOSED AND PLANNED TO BE DELIVERED AFTER 2020

c A ve

l ant

c A ve

l ant

AtlanticAve

DelrayBeach SimsRd

AtlanticAve

SimsRd

DelrayBeach

Se 6thAve

WLintonBlvd

Se 6thAve

Lint o n Bl v d

WLintonBlvd

Lint o n Bl v d

SUsHighway 27

ClintMooreRd

HighlandBeach

ClintMooreRd

HighlandBeach

YamatoRd

WYamatoRd

YamatoRd

WYamatoRd

KimberlyBlvd

o to

BocaRaton

la d

GladesRd

NDixieHwy la d e s R

s R

GladesRd

NDixieHwy

Nw 2 n d Ave

P o

Nw 2 n d Ave

P o

n d

r n d

Po w e rline R d kR d L y o n

Po w e rline R d

m et t

kR d

o P a

Pal

r o s

m et t

o P a

Pal

r o s

Palm Beach County

R ea

W Camino

a D r

R ea

W Camino

a D r

L y o n

BocaRioRd

Sw 18thSt

s R d

BocaRioRd

Sw18thSt

s R d

Broward County

PALM BEACH COUNTY - OFFICIAL ZONING MAP COMMERCIAL (CC,CG, CHO,CLO,CN, CRE,CS, CSH, IR,LCC,LO,MUPD, MXPD,TMD) INDUSTRIAL (IG, IL, PIPD) MIXED USE (TND,TTD,SD, UC,UI) PRESERVATION/CONSERVATION (PC) PALM BEACH COUNTY - OFFICIAL ZONING MAP COMMERCIAL (CC,CG, CHO,CLO,CN, CRE,CS, CSH, IR,LCC,LO,MUPD, MXPD,TMD) INDUSTRIAL (IG, IL, PIPD) MIXED USE (TND,TTD,SD, UC,UI) PRESERVATION/CONSERVATION (PC)

1.5

4.5

1.5

4.5

Miles

AGRICULTURAL (AGR,SA)

RESIDENTIAL (AR,MHPD, PUD, RE,RH,RM,RS, RSER, RT,RTS, RTU, RVPD)

AGRICULTURAL (AGR,SA)

RESIDENTIAL (AR,MHPD, PUD, RE,RH,RM,RS, RSER, RT,RTS, RTU, RVPD)

Disclaimer:

“Legal: Palm Beach County is providing this data “as is,” and Palm Beach County disclaims any and all warranties, whether expressed or implied, including (without limitation) any implied warranties of merchantability or fitness for a particular purpose. In no event will Palm Beach County be liable to you or any third party for any direct, indirect, incidental, consequential, special, or exemplarydamages or lost profits resulting from any use or misuse of this data.”

MUNICIPAL AREAS

AGR-PUD

MUNICIPAL AREAS

AGR-PUD

Post-covid19 the industrial market remains a strong hold in the South Florida market. With the shifting in consumer spending, we are seeing 3PLs, large fulfillment companies and cold storage users taking down large blocks of bulk industrial space. We expect these trends to continue through 2020. - MatthewMcAllister

PALM BEACH COUNTY GIS Service Bureau July 05, 2019

(PO) PUBLIC OWNERSHIP

AGRICULTURAL PRODUCTION (AP)

INSTITUTIONAL (IPF)

(PO) PUBLIC OWNERSHIP

AGRICULTURAL PRODUCTION (AP)

INSTITUTIONAL (IPF)

Date: July 05, 2019

Filename: S:\Work\skubber\Projects\Zoning\general_zoning_map.mxd

Date: July 05, 2019

Filename: S:\Work\skubber\Projects\Zoning\general_zoning_map.mxd

14 | PALM BEACH COUNTY

INDUSTRIAL MARKET REPORT | 15

2019-2020 LEASE COMPARABLES

Signing Date Comments

Tenant/Landlord/ Location

Total SF Rental Rate

Tenant/Landlord/ Location

Total SF Rental Rate

Term: 86 Months Escalations: 3% Free Rent: 2 months TI: $1.25 PSF Renewal Term: 62 Months Escalations: 3% Free Rent: 2 months TI: None New

Term: 100 Months Escalations: 3% Free Rent: 3 months TI: $12.00 PSF New Term: 61 Months Escalations: 3% Free Rent: 1 month TI: $2.00 PSF New

Millwork Sales / Thomson Logistics 700 103rd Avenue Royal Palm Beach

Marvin Windows / Duke Realty 6729 Belvedere Road West Palm Beach

152,390 SF

$7.65 NNN

2Q20

18,297 SF $7.75 NNN 4Q19

Deutz Corp / Cabot Turnpike Business Center 475 N Cleary Road West Palm Beach

Savannah Trims / Silverman 1500 Avenue R Riviera Beach

15,010 SF $8.95 NNN 1Q20

22,961 SF $7.00 NNN 3Q19

Term: 12 Months Escalations: 3% Free Rent: None

Term: 60 Months Escalations: 3% Free Rent: None

Amarr Company / DRA Advisors 1301 W 13th Street Riviera Beach

Suncrest Supply / Donner Properties 1701 & 2001 Australian Ave Riviera Beach

69,500 SF 13,500 SF $6.20 NNN 3Q19

23,471 SF $6.39 NNN 1Q20

TI: None Renewal

Term: 84 Months Escalations: 3% Free Rent: None TI: Turnkey New Term: 60 Months Escalations: 3% Free Rent: None TI: None Renewal/Expansion Term: 87 Months Escalations: 3% Free Rent: 3 months TI: $10.00 PSF New Term: 135 Months Escalations: 3% Free Rent: 3 months TI: $18.82 PSF New Term: 64 Months Escalations: 3% Free Rent: 4 months TI: $7.00 PSF New

Term: 60 Months Escalations: 3% Free Rent: None TI: None Renewal & Expansion

Amazon / Brookfield 700 Banyan Trail Boca Raton

Torque Classic Cars . EastGroup Properties 7891 Central Industrial Drive Riviera Beach

175,625 SF on 10.89 AC $8.00 NNN 1Q20

11,667 SF $8.50 NNN 2Q19

Term: 60 Months Escalations: 3% Free Rent: None TI: $5.00 PSF New Term: 84 Months Escalations: 3% Free Rent: None TI: 10% office New

Trane US / Cabot 6965 Vista Parkway N West Palm Beach

Sorinex Exercise Equipment / DRA Advisors 1301 W. 13th Court Riviera Beach

63,117 SF $10.03 NNN 1Q20

23,471 SF $8.32 NNN 2Q19

Spartan Motors / TPA Group 15335 Park of Commerce Blvd Jupiter

SIW Solutions / Duke Realty 6717 Belvedere Road West Palm Beach

34,950 SF 2.15 AC

$7.09 NNN 1Q20

161,725 SF $7.25 NNN 2Q19

Term: 62 Months Escalations: 3% Free Rent: 2 months TI: None New

Fun Sweets / Easton & Assoc 501 103rd Avenue Royal Palm Beach

LVI Intermediate Holdings / EastGroup 7880 Central Industrial Drive Riviera Beach

51,840 SF $9.20 NNN 1Q20

15,000 SF $7.75 NNN 2Q19

Term: 25 Months Escalations: 3% Free Rent: None TI: None New

NiagaraBottling / TPA Group 15335 Park of Commerce Blvd Jupiter

SC Cabinets / CJJS Holdings 3821 Fiscal Court Riviera Beach

114,536 SF $7.10 NNN 1Q20

10,500 SF $10.44 Gross 2Q19

Term: 60 Months Escalations: 3% Free Rent: None TI: $10.00 PSF New Term: 60 Months Escalations: 3% Free Rent: None TI: $10.00 PSF New

Term: 63 Months Escalations: 3% Free Rent: 3 Months TI: $5.50 PSF New Term: 60 Months Escalations: 3% Free Rent: None TI: $2.00 PSF Renewal

Parts Authority / Cabot 2211 Vista Parkway West Palm Beach

VPX Pharmaceuticals / EastGroup 7950 Central Industrial Drive Riviera Beach

32,120 SF $7.75 NNN 1Q20

20,000 SF $7.75 NNN 2Q19

Anton Paar Quantachrome / Boynton Commerce Center, LLC 1900 Corporate Drive Boynton Beach

Service Partners / Cabot 2213 Vista Parkway West Palm Beach

17,603 SF $7.95 NNN 1Q20

52,505 SF $8.02 NNN 1Q19

Term: 126 Months Escalations: 3% Free Rent: 6 months TI: $10.00 PSF New Term: 85 Months Escalations: 3% Free Rent: 1 month TI: $15.00 PSF New

Term: 86 months Escalations: 3% Free Rent: None TI: Undisclosed; includes addl. land for parking New

Amzazon / Duke Realty 6711 Belvedere Road West Palm Beach

Palm Beach County Food Bank / The Silverman Group 701A Boutwell Road Lake Worth

27,960 SF $7.75 NNN 4Q19

96,759 SF $10.18 NNN 1Q19

Term: 36 Months Escalations: 3% Free Rent: None

Kiosoft / Duke Realty 1137 Gateway Boulevard Boynton Beach

S&C Electric Company / The Realty Associates 1501 Northpoint Parkway West Palm Beach

14,978 SF $8.50 NNN 4Q19

12,016 SF $8.33 NNN 1Q19

TI: None Renewal

Term: 60 Months Escalations: 3% Free Rent: None TI: $10.00 PSF New

Term: 60 Months Escalations: 3% Free Rent: None TI: $2.00 PSF New Term: 60 Months Escalations: 3% Free Rent: None TI: $3.00 PSF Expansion/Renewal

Confidential Freight Company / Duke Realty 6729 Belvedere Road West Palm Beach

Laticrete / Duke Realty 5786 Premier Park Drive West Palm Beach

18,433 SF $8.65 NNN 4Q19

43,880 SF $6.85 NNN 1Q19

Term: 90 Months Escalations: 3% Free Rent: 6 months TI: $5.00 PSF New

Cheney Brothers / Liberty Equities 1101 Northpoint Parkway West Palm Beach

Paradise Exteriors / Boynton Commerce Center, LLC 1916 Corporate Drive Boynton Beach

36,599 SF $7.75 NNN 4Q19

15,000 SF $8.03 NNN 1Q19

16 | PALM BEACH COUNTY

INDUSTRIAL MARKET REPORT | 17

2019-CURRENT BUILDING SALES BUILDING SALES Buyer Location Bldg SF /

Acrage Sales Price Closing Date

$15,500,000 ($179.40 PSF)

Cabot Properties

501 103rd Avenue, Royal Palm Beach

86,400 SF

07/2020

$25,500,000 ($107.79 PSF)

2 Dalfen Industrial

3774 Interstate Park Road, Riviera Beach

236,553 SF

06/2020

18 19

$18,350,000 ($122.00 PSF)

3 Dalfen Industrial

1177 W. Blue Heron Boulevard, Riviera Beach

150,852 SF

06/2020

$31,400,000 ($178.79 PSF)

4 Brookfield Asset Management

700 Banyan Trail Boca Raton

175,625 SF

02/2020

$9,507,967 ($104.89 PSF)

5 Elion Partners

1200 SW 35th Ave Boynton Beach

90,643 SF

01/2020

$8,361,210 ($118.19 PSF)

6 Prologis, Inc.

951 Clint Moore Rd Boca Raton

70,744 SF

01/2020

$9,811,199 ($180.95 PSF)

7 Elion Partners

1210 SW 35th Ave Boynton Beach

56,160 SF

01/2020

$6,530,833 ($117.47 PSF)

8 Elion Partners

1220 SW 35th Ave Boynton Beach

55,594 SF

01/2020

$2,800,000 ($112.00 PSF)

9 Spottswood PB, LLC

6780 White Drive Riviera Beach

25,000 SF

08/2019

$7,600,000 ($105.56 PSF)

10 Spottswood PB, LLC

2900 High Ridge Road Boynton Beach

72,000 SF

06/2019

$13,500,000 ($128.57 PSF)

POC Realty, LLC

15132 Park of Commerce Blvd Jupiter

105,000 SF

06/2019

$5,024,247 SF ($101.20 PSF)

12 Investicore Property Co 5, LLC

1077 Blue Heron Blvd W Riviera Beach

49,646 SF

05/2019

13 Alliance Partners HSP, LLC

1601 Hill Avenue West Palm Beach

220,625 SF $8,700,000 ($39.43 PSF)

04/2019

$3,450,000 ($45.05 PSF)

14 FLF Real Estate

1800 Avenue P Riviera Beach

76,578 SF

03/2019

$2,010,000 ($107.50 PSF)

15 Dominic & Joan Revocable Trust Mallory Improvement Corp

2225 Idlewild Road Palm Beach Gardens

18,697 SF

03/2019

$7,800,000 ($133.91 PSF)

03/2019

16 Collier Enterprises Realty Group

777 S Congress Avenue Delray Beach

58,250 SF

11,700,000 ($124.86 PSF)

17 Harry Spitzer

3541 Martin Luther King Jr Blvd Riviera Beach

93,702 SF

03/2019

$3,225,000 ($87.83 PSF)

18 David Felton

3705 Shares Place Riviera Beach

36,720 SF

02/2019

$3,680,000 ($83.42 PSF)

19 Alexander Redfearn

3661 Blue Heron Blvd Riviera Beach

44,112 SF

02/2019

$6,650,000 ($140.00 PSF)

20 KVA Congress, LLC

3600 S Congress Avenue Boynton Beach

47,626 SF

02/2019

1220 Tangelo Terrace, 1240 Tangelo Terrace, Delray Beach

33,410 SF 32,700 SF 23,808 SF 4,451 SF 5,801 SF 5,351 SF 15,125 SF 54,536 SF

$9,000,000 ($136.00 PSF)

Linton Industrial Center LLC David Kahn

01/2019

1817-1831 Church Street , 1839-1853 Church Street, 1861-1875 Church Street, 1883-1897 Church Street, 1720-1748 Donna Road, West Palm Beach

$2,075,000 ($38.05 PSF)

22 YS Investments

01/2019

18 | PALM BEACH COUNTY

2019 - CURRENT LAND SALES Buyer / Location

Acreage

Sale Price

Sale Date

Duke Realty / Brown Land Holding, Inc 849 N Benoist Farms Road Royal Palm Beach

$6,000,000 ($13.78 PSF)

9.99 AC

03/2020

Florida Land Fund, LLC / IDI Logistics Group, LLC Okeechobee Rd & FL Turnpike Ft Pierce

$3,515,000 ($0.61 PSF)

132.41 AC

11/2019

3 RCA Medical Owners, LLC / Amara Temple Holding Corp, Inc

$8,250,000 ($18.94 PSF)

3650 RCA Boulevard Palm Beach Gardens

10 AC

10/2019

4 Butters Acquisitions, LLC / Dizengoff-Boca Raton, LLC 900 Peninsula Corporate Circle Boca Raton

$3,750,000 ($22.90 PSF)

3.759 AC

09/2019

Arturo Scroggie / Areal Investments, Inc 1939 7th Avenue N Lake Worth

$2,100,000 ($8.79 PSF)

5.48 AC

04/2019

Cleveland Clinic Florida / Diocese of Palm Beach 8765 Lake Worth Road Lake Worth

$9,250,000 ($6.06 PSF)

35 AC

01/2019

20 | PALM BEACH COUNTY

AT THE CENTEROF WHAT’S NEXT IN INDUSTRIAL

Our industrial experts provide market expertise, company resources and tailored solutions to drive value for your business. Tailored Solutions to Retain Tenants and Maximize Value If you want to effectively attract and retain credit-worthy tenants, minimize downtime and maximize your return on investment, look no further than Cushman & Wakefield’s industrial brokers. Our team approach is unique; we have local and industry expertise, and we partner with you to understand your objectives to develop a comprehensive property plan using market intelligence and our industry leading research.

22 | PALM BEACH COUNTY

INDUSTRIAL MARKET REPORT | 23

Prepared by: CHRIS METZGER, SIOR Executive Director +1 954 938 2608 chris.metzger@cushwake.com RICK ETNER, SIOR Executive Director +1 954 938 2607 rick.etner@cushwake.com

CUSHMAN & WAKEFIELD

CHRISTOPHER THOMSON, SIOR Executive Director +1 561 227 2020 christopher.thomson@cushwake.com MATTHEW MCALLISTER Director +1 561 227 2018 matthew.mcallister@cushwake.com

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About Cushman & Wakefield Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 53,000 employees in 400 offices and 60 countries. In 2019, the firm had revenue of $8.8 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.

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©2020 Cushman & Wakefield. The material in this presentation has been prepared solely for information purposes, and is strictly confidential. Any disclosure, use, copying or circulation of this presentation (or the information contained within it) is strictly prohibited, unless you have obtained Cushman & Wakefield’s prior written consent. The views expressed in this presentation are the views of the author and do not necessarily reflect the views of Cushman & Wakefield. Neither this presentation nor any part of it shall form the basis of, or be relied upon in connection with any offer, or act as an inducement to enter into any contract or commitment whatsoever. NO REPRESENTATION OR WARRANTY IS GIVEN, EXPRESS OR IMPLIED, AS TO THE ACCURACY OF THE INFORMATION CONTAINED WITHIN THIS PRESENTATION, AND CUSHMAN & WAKEFIELD IS UNDER NO OBLIGATION TO SUBSEQUENTLY CORRECT IT IN THE EVENT OF ERRORS.

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