MARKETING & RESEARCHPersonalized. Strategic. Successful.

Colliers International | Minneapolis-St. Paul is one of the only Twin Cities commercial real estate firms with its own in-house marketing and research team. Our unique perspective and ability to think beyond the four walls of a building enables us to provide targeted, strategic, and personalized campaigns for our clients.

MEET THE TEAMWith each team member bringing a specific expertise and focus to the table, our collaborative approach provides you with the creativity and experience needed to develop a timely and effective marketing plan.

In addition to our local team, we have access to a global network of marketing and research resources, enabling us to scale our projects to fit companies of any size and location.

Lisa BergersonDirector of Marketing & Communications

> Defines strategy and oversees implementation

Maura CarlandResearch Manager

> Provides clients with specialized market insight

Jennifer SchraderSenior Marketing Strategist

> Creates compelling content and positive public perception

Luke NiethammerMarketing Specialist

> Implements persuasive campaigns and monitors analytics across many media types

Kara ChernakMarketing Specialist

> Implements persuasive campaigns and monitors analytics across many media types

Krystle Gamrak Senior Graphic Designer

> Combines art and technology to communicate ideas through effective design

MARKETING RESEARCH

> Creates state-of-the-art real estate maps for multiple platforms

Matt RathlisbergerResearch and Mapping Specialist

› Create content › Develop marketing collateral › Build web presence › Leverage online commercial platforms › Target brokers and tenants › Share with media contacts › Implement digital and social tactics › Utilize demographic and amenity mapping › Evaluate co-marketing partnerships

› Reporting tools › Analyze results › Optimize efforts › New idea generation › Nurture and engage leads

› Identity › Offering › Value and features › Data mining › Collect visual asset

We will partner with you to identify your objectives, and then customize your positioning and rollout strategy to fulfill those needs by creating engaging collateral and implementing creative tactics.

INTEGRATED MARKETING PLATFORM

CREATE A MULTI-CHANNEL MARKETING CAMPAIGN

DEVELOP BRANDING & POSITIONING

GENERATE RESULTS

TELLING YOUR STORY

Monitoring, analyzing, and refining our marketing performance is key to maximizing its effectiveness and efficiency.

Our marketing and research departments collaborate to offer a variety of targeted marketing capabilities that can be tailored to fit your specific and unique business needs.

� Reach beyond traditional “outbound” marketing tactics to engage prospects

� Engage in “inbound” techniques of content marketing � Produce relevant, knowledge-driven content to

encourage dialogue with interested prospects

� Colliers database of tenants in the market � Local and national listing services � Broker open house and event planning � Leverage vast network of local and national

brokerages

� iPad and mobile phone applications for opportunity exposure

� Responsive design templates and marketing collateral

� QR Codes

� More than 300,000 monthly impressions generated through in-house media relations

� Placement in local, regional, national and trade publications

� Customized brochure showcasing buildings � Market and demographic information � Property photos, site plans, and floor plans � Maps and aerials � Highlight local amenities

� Targeted e-campaigns � Digital collateral � Customized website � Interactive property tours

� Leverage valuable LinkedIn, Facebook and Twitter distribution channels

� Direct marketing to prospective tenants and the brokerage community

� Custom reporting to measure campaign performance � Insight on highly engaged prospects � Use data to refine marketing strategy � Email reports � Google analytics � Lead activity

OUTBOUND & INBOUND MARKETING PRINT MEDIA

BROKER/REFERRAL MARKETING

MOBILE MARKETING

PUBLIC/MEDIA RELATIONS

DIGITAL MEDIA

SOCIAL MEDIA

ANALYTICS

RESEARCH CAPABILITIES The Minneapolis-St. Paul office of Colliers International’s commitment to market research is demonstrated by our ongoing efforts to keep cutting edge tools of the trade and technology available to our staff. We believe that reliable, up-to-date information gives us the advantage in today’s marketplace; therefore, we are constantly evaluating new products and processes in order to offer the widest array of resources. Our research capabilities enable us to provide our staff with accurate, up-to-date information at their fingertips, thereby increasing their effectiveness to the ultimate benefit of our clients. We fully leverage the national research capabilities available to us through Colliers International, including strong relationships with researchers across the country and access to Colliers’ world-class mapping services.

demandIndustrial demand was positive for the ninth

quarter in a row as the region reported 233,700

SF of positive net absorption. tightening market

conditions are limiting new industrial absorption

as quality buildings are leasing quickly. Sales and leasing activity was up at 2,930,300

SF, the highest level of sales and leasing activity

since 2007. the majority of this activity was in

the largest size segment (100,000 SF+) which

had 1.9 million SF of industrial activity this

quarter. the largest lease of the quarter was aNr Logistics

renewing into 274,000 SF of space in Buena

park. In addition, total transportation Industry

occupied 135,100 SF of space in La mirada, and

United Way International moved into 52,200 SF

of space in Santa Fe Springs. other deals include

Mayflower Distributing Inc. taking 58,100 SF of

space in Cerritos. the largest sale of the quarter was an investment

transaction. Duke realty purchased a 497,600 SF

multi-tenant industrial building in La mirada that

was fully leased at the time of sale for $63.2

million or $127 pSF. Class a properties still command a price premium,

but the scarcity of quaity buildings has also

pushed up prices for Class B space. as market conditions continue to tighten, sales

and lease rates should increase as continued

industrial demand outpaces existing supply.

Data on the local economy indicates gradually

improving employment conditions, with cautious

optimism moving forward. over the past 12

months, nonfarm employment in Los angeles

County actually increased by 38,000 (+1.0%)

although the unemployment rate remains

stubbornly high at 11.8%1. this is well above the

national unemployment rate of 8.1% and on par

with the California unemployment rate of 11.0%.other indicators of industrial activity indicate

industrial conditions may be slowing. port volume

for Los angeles / Long Beach for may has been

flat over the past 12 months and the PMI was

49.7 in June, its lowest level since 2009, indicating

a slowdown in manufacturing in future quarters.

constructionthis quarter, panattoni started construction of a

328,400 SF industrial building in Santa Fe

Springs. this will be a Class a cross-dock

facility.

1Source: California Employment Development Department, May 2012.

industriaL overviewmid counties industrial marketQ2 2012EXistinG PrOPErtiEs

VaCanCYaVailaBilitY aCtiVitY

aBsOrPtiOnCOnstruCtiOn

rEnts PriCEs

submarket/ Building sizetotal inventory sF

direct 1 Vacancy rate

sublease Vacancy rate

total 2 Vacancy rate

total 2 Vacancy

rate Prior Qtr

total 3 available rate

sales & leasing activity sF

net 4 absorption Current Qtr sF

net 4 absorption Ytd sF

Completions5 Current Qtr sF

under Construction/ renovation sF

Planned 6

sFWeighted 7 avg asking lease rate

average 8 sale Price

10,000 - 19,999 8,361,500 3.4% 0.0% 3.4% 4.5%5.9%

162,100 6,100 (63,800)0

0 0 $0.47 $106

20,000 - 39,999 15,152,000 2.5% 0.0% 2.5% 3.8%4.5%

323,200 121,600 241,500 0

0 74,700 $0.49 $84

40,000 - 69,999 17,938,000 2.9% 0.0% 2.9% 3.8%4.1%

340,400 114,500 78,900 0

0 93,900 $0.46 $75

70,000 - 99,999 12,143,900 3.9% 0.0% 3.9% 3.4%5.0%

192,200 (104,600) (112,300)0

0 0 $0.46 $74

100,000+50,004,200 4.8% 0.0% 4.8% 4.0%

7.0%1,912,400 96,100 541,500

0 633,700 0 $0.46 $91

subtotal103,599,600 3.9% 0.0% 3.9% 3.9%

5.8%2,930,300 233,700 685,800 0

633,700 168,600 $0.47 $88

QuartErlY COMParisOn and tOtals

Q2 2012103,599,600 3.9% 0.0% 3.9% 3.9%

5.8%2,930,300 233,700 685,800 0

633,700 168,600 $0.47 $88

Q1 2012103,599,600 3.9% 0.0% 3.9% 4.2%

6.5%2,145,500 452,100 452,100

0 305,400 497,000 $0.45 $86

Q4 2011103,599,600 4.2% 0.0% 4.2% 4.5%

6.9%1,063,400 272,700 1,432,900 106,100

0 437,300 $0.43 $82

Q3 2011103,493,500 4.3% 0.2% 4.5% 5.1%

6.5%2,429,500 304,300 1,160,200 0

106,100 437,300 $0.42 $80

Q2 2011103,493,500 4.8% 0.3% 5.1% 5.7%

6.8%1,984,900 281,900 855,900

0 106,100 148,500 $0.42 $80

1Existing space that is vacant and immediately available for direct lease or for purchase. 2Existing space that is vacant and immediately available for direct lease, sublease or for purchase. 3All space that is

being marketed for occupancy, this may include space that is under construction or that is currently occupied. 4Calculations based on total vacancy. 5SF completed via new construction plus return-to-market of

renovated space, less space demolished or taken off-market. 6All announced space (even projects without entitlements or funding). Not all this space will necessarily be built. 7Weighted by vacant direct lease SF.

Per SF per Month. Triple Net (NNN). 8Weighted average based on actual sales transactions. Per SF.

Los anGeLes countYdemoGraPhicspopULatIoN: ›

9,860,300 (2012 estimate) 9,983,300 (2017 projection) 1.3% (Growth 2012-2017) HoUSeHoLD INCome: ›

$74,900 (average) $52,100 (median) JoB GroWtH: ›

+1.0% (past 12 months) UNempLoymeNt rate: ›

11.4% (as of may 2012)

P. 2 | coLLiers internationaL

MarkEt rEPOrt | Q2 2012 | industrial | mid counties

OFFICE MARKET REPORTMINNEAPOLIS-ST. PAUL

www.colliers.com/msp

Minneapolis-St. Paul Office Market Stalls During the Fourth Quarter

VACANCY AND ABSORPTION TRENDS

After absorbing almost one million square feet in 2012, and 604,467 square feet through the

third quarter of 2013, there was negative absorption of 100,711 square feet in the fourth

quarter. This brings 2013’s absorption total to just over 500,000 square feet. After absorbing

221,108 square feet and 263,792 square feet during the first and second quarters, respectively,

absorption slowed to 119,567 in the third quarter before turning negative for Quarter Four.

Vacancy inched upward to 15.6 percent from 15.4 percent.

Landlords at Class A properties along the 394 corridor and along Nicollet Mall in the

Minneapolis CBD are pushing their quoted rental rates upward, and holding to these rates in

negotiations. At the other end of the spectrum, there is still strong competition among

landlords for any tenants looking at Class B and C buildings, in particularly those with inferior

locations, dated common areas, and limited amenities.

In addition to stalling absorption, the number of users in the market has tapered considerably

since the beginning of the year, and companies continue to decrease their overall footprints.

This reduction is not always reflective of decreasing employee counts, but rather it involves

the effort to reduce their real estate occupancy levels and costs, create more collaborative

spaces, and respond to changing work styles. While there are select examples of companies

that are expanding, the majority are reducing occupancy levels as they renew or relocate.

An example of expanding companies are businesses that provide flexible, lower-cost shared

office space for workers. Often called co-working space, it includes necessary business

accessories and services such as printing, scanning, and wi-fi, and offers both individual

workstations and shared gathering spaces. Café, Inc. opened its first such alternative

workspace at the Edina Gateway building. Other companies in this market include Regus,

Workspring, and LiquidSpace, the company behind CoCo. Users of these services range from

individual entrepreneurs to large corporate consulting companies that send staff into the field

and away from home offices.

As we look into 2014, we expect a continued stark contrast in demand and rental rates

between premier, well-located properties and struggling Class B and C properties.

Development has been limited to build-to-suit activity for large users and redevelopment of

existing properties. The lack of speculative development combined with tenant demand for

custom spaces could spur additional build-to-suit development, most likely along the 394

Corridor in the West submarket.

Q4 2013 | OFFICE

MARKET INDICATORSQ4 2013

VACANCY —

NET ABSORPTION

RENTAL RATE —

VACANCY25%

20%

15%

10%

5%

2005 2006 2007 2008 2009 2010 2011 2012 2013

NET ABSORPTION2,000,0001,500,0001,000,000

500,0000

(500,000)(1,000,000)(1,500,000)(2,000,000)

17.4%16.3%

15.2% 14.9%16.8% 17.2% 16.7%

966,371

253,779

(1,661,963)

(312,099)

2005 2006 2007 2008 2009 2010 2011 2012 2013

929,16911,453,291

Perc

ent V

acan

tSF

Abs

orbe

d

16.1%

585,965981,934

15.6%

503,756

TOOLS TO MAKE SOUND REAL ESTATE DECISIONSEvery sound business decision starts with good research, and your company’s real estate is no exception. Our combination of local, in-depth knowledge and a global network of resources enables us to provide the very best information on the market.

RESOURCES> In-house proprietary property database> Minnesota Commercial Association of Realtors (MNCAR) online database> CoStar> Loopnet> Tenant lists> Demographic data> InfoUSA> ESRI Geographic Information Systems (GIS)> ArcGIS Online

RAPID CONNECTION TECHNOLOGY � Colliers’ leading-edge technology platform

enhances collaboration, efficiency, and transparency � Custom web-based tool, Colliershub, manages

our vast knowledge base, increases cross-market communication among Colliers International and Investment professionals, and exposes existing relationships across our deep bench of local market experts

� Seamless integration of Colliershub, client relationship management (CRM), enterprise resource planning (ERP) systems, and Outlook allow for substantial increases in exposure and productivity levels

IN-DEPTH RESEARCH � Valuable market intelligence supportive of

business decisions � Multilevel support across all property types, from

data collection to comprehensive market analysis � Expansive databases housing detailed information

on properties nationwide and globally � Quarterly reports produced on market/economic

conditions in virtually every major market � Combined market knowledge and forward-thinking

expertise to plan for the future

MAPPING SERVICES (GIS) � Comparative market analysis � Market trends � Market segmentation � Demographics � Employment and transportation analysis

REPORTING � Calculations of replacement costs, investments,

and owner occupant values in individual spreadsheets

� Comprehensive reports on recent comparable property sales and leases, giving us the most up-to-date and accurate picture of sale prices in the area

� Analysis of current market inventory to determine an appropriate strategy for the pricing and sale or lease of your property

We recognize the importance of providing our clients with the most comprehensive picture of the Twin Cities market.

Colliers International | Minneapolis-St. Paul4350 Baker Road, Suite 400Minnetonka, MN 55343

www.colliers.com/msp

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