SoMi Industrial Portfolio OM

SOUTH MIAMI INDUSTRIAL PORTFOLIO | MARKET OVERVIEW

EXPLOS I VE GROWTH I N SOUTH FLOR I DA SH I PP I NG

South Florida is also making tremendous investments in infrastructure, with $6.7 billion recently completed or planned for the next several years:

Completed in late 2013, Miami Intermodal Center, located in the Hialeah Railyards at the northwest corner of the Miami International Airport, is designed to accommodate and provide connections to various forms of transportation, including car rental, Tri-Rail, Metrorail, AMTRAK and future high-speed rail service. The station will also include service for bus, private vehicle parking, Metrobus, taxis and shuttle buses now serving the airport. The US Dept. of Transportation awarded the Port of Miami with a grant to restore rail service between the Port and the Florida East Coast Rail Yard in Hialeah, reintroducing on-port freight rail service providing direct cargo access to the national rail system. The Port of Miami Tunnel project is a $1.2 billion, 5-year project that commenced in 2010 and was recently completed in Q2 2014. The project allows trucks from the Port of Miami to connect directly to I-595 and I-95 and to bypass the highly congested downtown area, essentially doubling truck movement capacity between the harbor and mainland. In order to coincide with the completion of the expansion of the Panama Canal in 2015, and to support the much larger ships that can pass through, the Port of Miami is undergoing a $77 million Deep Dredge Project, a massive initiative to deepen the channel to minus 50’. “Panamax” and “New Panamax” are the terms reserved to describe the size limits and requirements of the old and new lock chambers, respectively, at the Panama Canal. While the former can handle 5,000 TEU vessels, the latter’s expanded dimensions will be able to accommodate the world’s largest vessels, with capacities up to 13,000 TEUs – a 160% increase. While three east-coast US cities (New York, Norfolk & Miami) vie to capture “New Panamax” traffic, the Port of Miami’s new depth will enable it to be the first port of call along the United States’ eastern seaboard for fully-laden ships coming from the newly expanded Panama Canal. The Port estimates that annual cargo throughput will grow between 5.0% and 7.0% over the next 10 years, from 7,389,165 million cargo tons (847,249 TEUs) in 2010 to approximately 14,778,330 million cargo tons (1,695,355 TEUs) in 2020.

• $2.3 billion - FLL airport and runway expansion

• $2.0 billion - Miami Intermodal Center (MIC)

• $1.3 billion - Port of Miami Tunnel and Dredging Project

• $560 million - Miami’s Intelligent Transportation System (ITS) Program

• $320 Million - Port Everglades Deepening & Widening

• $58.5 million - MIA NW 25th Street Viaduct

• $54 Million - Renovation of Cruise Terminals 2, 19, 21 and 26

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• $53 Million - Port Everglades Intermodal Container Transfer Facility

• $42.5 million - Port Everglades Eller Drive Overpass

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