Prologis Mesquite Presentation

MARKET OVERVIEW OVERALL DFW MARKET SNAPSHOT

OBSERVATIONS & TRENDS

OVERALL VACANCY

NEW SUPPLY

35

9.0%

Historical Average = 12.2 MSF

Historical Average = 8.4%

30

• DFW Industrial Market is one of the strongest in the US as a top four choice for national logistics distribution • DFW #1 in US job growth and #2 in US population growth • Despite the record-high 27.4 MSF of new inventory delivered in 2017, the vacancy remains low at 7.0% • Overall demand remained elevated with over 26 MSF absorbed in 2017 • Average asking rates should increase throughout 2018, due to high demand and the abundance of new, well- equipped, premium construction stock

8.0%

25

20

7.0%

15

Millions

10

6.0%

5

0

5.0%

2003

2006

2009

2012

2015

2018 YTD

Q1 2013

Q1 2014

Q1 2015

Q1 2016

Q1 2017

Q1 2018

Delivered

Historical Average

Overall Vacancy Rate

Historical Average

MARKET STATS

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Q1 2018

INVENTORY

579.2 MSF 602.1 MSF 613.4 MSF 614.9 MSF 616.9 MSF 619.0 MSF 626.4 MSF 643.5 MSF 663.1 MSF 684.3 MSF 713.5 MSF 717.4 MSF

OVERALL NET ABSORPTION

16.6 MSF 10.4 MSF -2.7 MSF

2.9 MSF

12.5 MSF

12.1 MSF

17.4 MSF

15.6 MSF 20.2 MSF 25.2 MSF 23.7 MSF

3.2 MSF

OVERALL VACANCY

8.5%

10.3%

12.4%

12.1%

10.4%

8.7%

7.0%

7.1%

6.8%

6.0%

6.5%

6.4%

COMPLETIONS

12.8 MSF 22.9 MSF

11.3 MSF

1.5 MSF

2.0 MSF

2.1 MSF

7.4 MSF

17.1 MSF

19.6 MSF

21.2 MSF 29.2 MSF

3.1 MSF

UNDER CONSTRUCTION

19.7 MSF

10.9 MSF

1.5 MSF

1.4 MSF

2.0 MSF

4.0 MSF

13.9 MSF

16.6 MSF 20.3 MSF 26.6 MSF 19.3 MSF 20.2 MSF

NOTE: Beginning in 2014, Cushman &Wakefield Research includes Fort Worth Industrial Market Data.

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