1. Q4 2011 | INDUSTRIAL
CINCINNATI, OH
THE KNOWLEDGE REPORT
STRONG FINISH ENDS THE YEAR ON A
POSITIVE NOTE
EXECUTIVE SUMMARY
The Greater Cincinnati industrial market finished the year on a strong note and produced more than
1.1 million square feet of positive absorption in the fourth quarter. This was just enough to send the
total year-to-date absorption into positive territory at 120,511 square feet. Most of the absorption
came from general industrial properties, not distribution space or flex/R&D properties. This means
MARKET INDICATORS that several midsize deals were completed, as opposed to one large deal accounting for all of the
positive absorption.
Q4 11 Q1 12*
VACANCY For the fourth quarter, the overall vacancy rate was 9.3% and the overall weighted asking rate for
industrial properties was $3.53 per square foot. Flex/R&D space slightly increased to $6.17 per
NET ABSORPTION
square foot, while distribution space came in at $2.88 per square foot. Comparatively, general
CONSTRUCTION — — industrial space was recorded at $3.70 per square foot.
RENTAL RATE — —
NORTHERN KENTUCKY
*Projected Change to Following Quarter The Northern Kentucky submarkets were down slightly in the fourth quarter, as all markets combined
for 43,373 square feet of negative net absorption. For 2011 as a whole, the southern side of the river
posted 72,458 square feet of total year-to-date absorption and ended on a positive note.
Several lease signings and lease renewals were witnessed in the fourth quarter, including Valassis
Inc.’s 140,000 square foot renewal at 10176 Dixie Highway, Johnson Controls’ 135,550 square foot
OVERALL VACANCY RATE
lease at 7575 Empire Drive and Packaging Unlimited’s 48,176 square foot lease at 7130 New
Buffington Road.
9.5%
9.0%
SUBURBAN OHIO SUBMARKETS
8.5% On the northern side of the river, the I-275 East Corridor submarket led the way in the fourth quarter
8.0% of 2011. This submarket posted 526,137 square feet of positive absorption, and a large portion of this
growth was fueled by Global Scrap Management’s takeover of part of the former Ford Transmission
7.5%
Plant in Batavia. The Blue Ash submarket also chipped in to help the cause, and added 267,319
4Q 09
1Q 10
2Q 10
3Q 10
4Q 10
1Q 11
2Q 11
3Q 11
4Q 11
square feet of positive absorption.
Quarterly Net Absorption
*Vacancy Rate increased in 4Q 11 due to a
1,500,000
historical correction.
1,000,000
500,000
865,230 SF
www.colliers.com/cincinnati
0
-500,000
-1,000,000
1 000 000

2. THE KNOWLEDGE REPORT | Q4 2011 | INDUSTRIAL | CINCINNATI
CONSTRUCTION FORECAST
On the construction side, one large speculative building The strong finish of 2011 was great news for the
is under contract and several smaller build-to-suit Greater Cincinnati industrial market. Having 1.1 million
projects are underway. The speculative building is in square feet of positive net absorption is just what the
Monroe, as IDI continues construction on its 553,338 market needed in its economic recovery. Although we
square foot distribution center at 1100 Logistics Way. saw a flurry of activity during the past three months,
This building is expected to be completed in May of we expect this activity to slow down for most of 2012.
2012. USUI International is still on track to finish their There is slight concern with the Tri-County/Union
127,000 square foot facility in Sharonville. Links Centre submarket, as over 2 million square feet has
Liz Claiborne Facility Unlimited is working on a 60,000 square foot facility in already surfaced and will become vacant next year.
Norwood; Eurostampa is completing a 75,000 square This includes Avon Products on Progress Place, CEVA
foot facility in Roselawn; and Z.F. Steering Systems Logistics on Windisch Road and the Liz Claiborne
has two buildings under construction in Florence. Facility on Jacquemin Drive. We are hopeful that
industrial companies will continue to expand to help
Additional construction of speculative industrial space offset this expected negative absorption, making 2012
is not anticipated anytime soon, but we will continue an overall good year.
to see build-to-suit projects hit our market as
manufacturing continues to improve.
UPDATE Recent Transactions
FOURTH QUARTER ACTIVITY
PROPERTY SUBMARKET TENANT/BUYER LANDLORD/SELLER SIZE TYPE
5121 Fishwick Drive Central/Midtown The State of Ohio on Behalf of UC Quality Associates Inc. 210,000 Sale
West Chester Commerce Park Bldg II Tri-County/Un. Ctr. ING Clarion Partners ProLogis 205,920 Sale
9842 International Blvd Tri-County/Un. Ctr. Quality Associates RREEF Americas 204,800 Sale
9756 International Blvd Tri-County/Un. Ctr. Netrada North America RREEF Americas 192,000 Lease
10176 Dixie Highway Florence/Walton Valassis Inc. Paul Hemmer Companies 140,000 Lease Renewal
7575 Empire Drive Florence/Walton Johnson Controls Brendamour Group Realtors 135,550 Lease
1441 Western Avenue Central/Midtown Berman Printing Dyment Co. 101,920 Lease Renewal
10121 Princeton Glendale Road Tri-County/Un. Ctr. ING Clarion Partners ProLogis 90,640 Sale
3997 McMann East Woeste Investments 3M Company 83,000 Sale
7697 Innovation Way I-71 North Malhotra Family LLC Neyer Holdings 52,500 Sale
7130 New Buffington Road Florence/Walton Packaging Unlimited DCT Industrial Trust 48,176 Lease
ProLogis Park Sharonville #2 Tri-County/Un. Ctr. Ferguson Enterprises Inc. ProLogis 44,800 Lease
Corporate Woods Center Blue Ash Construction Software Tamarkin Co. 43,000 Lease
2909-2929 E. Crescentville Road Tri-County/Un. Ctr. Baldor Motors ProLogis 38,400 Lease Renewal
7107 Industrial Row I-71 North Healthwarehouse.com DCT Industrial Trust 34,106 Lease Expansion
419 Northland Blvd Tri-County/Un. Ctr. USA Lamp & Ballast Recycling, Inc. Haueter Properties, Inc. 32,970 Sale
7300 Industrial Road I-71 North M&M Logistics Oldcastle, Inc. 30,000 Sale
100 Commerce Blvd I-71 North Amp Electric Vehicles 100 Commerce Boulevard LLC 24,500 Lease
3143 Western Row Road I-71 North Good Health Properties Singer Contract Group 23,000 Lease
10557 Medallion Drive Lockland/Evendale Scherzinger Pest Control The National Realty Ground, Inc. 22,772 Sale
3965 Virginia Avenue Central/Midtown Tire Discounters Anchor Fluid Power 20,000 Lease
11658 Baen Road I-71 North Cahill Company Agnone-Kelly Properties LLC 17,800 Sale
Union Enterprise Center Tri-County/Un. Ctr. H&Y Cabinet & Granite Depot Neyer Holdings 12,500 Lease
2647 Morgan Lane Hamilton ADPI System Marsh Larry L & Patti A 12,090 Lease
Transactions are believed to be accurate but not guaranteed.
P. 2 | COLLIERS INTERNATIONAL

3. THE KNOWLEDGE REPORT | Q4 2011 | INDUSTRIAL | CINCINNATI
SUBMARKET DATA
SUBMARKET Total Inventory Total Vacant Vacancy Rate Quarterly YTD Avg. Rate
SF Absorption Absorption
275 East Corridor 7,914,976 2,213,297 28.0% 526,137 496,743 $3.59
Airport 27,928,875 2,931,474 10.5% (163,305) 42,769 $3.37
Blue Ash 13,912,070 1,212,923 8.7% 267,319 (293,760) $5.20
Campbell County 4,193,730 16,000 0.4% 0 0 N/A
Central/Midtown 55,319,876 3,592,647 6.5% 21,098 (688,274) $3.60
Covington 4,902,449 266,716 5.4% (32,716) (131,716) $3.64
Eastern Outlying 3,993,267 722,076 18.1% 173,629 29,705 $4.83
Florence/Walton 20,736,944 1,107,166 5.3% 152,648 161,405 $3.17
Hamilton
9.5% 7,321,859 264,300 3.6% (600) 115,400 $3.53
9.0%
I-71 North Corridor 10,114,916 1,501,734 14.8% 79,677 (66,899) $3.73
8.5%
Lockland/Evendale
8.0%
19,178,561 798,530 4.2% (50,067) (235,856) $3.44
7.5%
4Q 09
1Q 10
2Q 10
3Q 10
4Q 10
1Q 11
2Q 11
3Q 11
4Q 11
Monroe/Middletown 11,076,364 1,302,880 11.8% (328,149) (98,649) $2.92
Quarterly Net Absorption
Outside Metro Area
1,500,000
315,000 40,000 12.7% 0 0 $4.50
1,000,000
Tri-County/Union Centre 64,771,194 7,644,217 11.8% 189,650 619,734 $3.41
500,000
865,230 SF
Western Outlying
0 6,433,297 289,300 4.5% 329,909 169,909 $3.52
-500,000
MARKET TOTALS 258,113,378 23,903,260 9.3% 1,165,230 120,511 $3.53
-1,000,000
1 000 000
4Q 09
1Q 10
2Q 10
3Q 10
4Q 10
1Q 11
2Q 11
3Q 11
4Q 11
AVG. ASKING RATES (PER SF-FULL SERVICE GROSS) QUARTERLY NET ABSORPTION
General Flex Distribution
Quarterly Net Absorption
$8 1,500,000 The Cincinnati Industrial
Market’s vacancy rate
$7
1,000,000
stands at 9.3%, year-to-date
net absorption totaled
Square Feet
$6
(120,511) SF.
$5 500,000
$
$4
0
$3
$2 -500,000
4Q 09
1Q 10
2Q 10
3Q 10
4Q 10
1Q 11
2Q 11
3Q 11
4Q 11
-1,000,000
4Q 09
1Q 10
2Q 10
3Q 10
4Q 10
1Q 11
2Q 11
3Q 11
4Q 11
COLLIERS INTERNATIONAL | P. 3

4. THE KNOWLEDGE REPORT | Q4 2011 | INDUSTRIAL | CINCINNATI
I-75 NORTH
512 offices in
HAMILTON
61 countries on
6 continents
TRI-COUNTY/
UNION CENTRE United States: 125
Canada: 38
I-71 NORTH Latin America: 18
LOCKLAND/ BLUE Asia Pacific: 214
WESTERN EVENDALE ASH
CORRIDOR EMEA: 117
• $1.5 billion in annual revenue
CENTRAL/ EASTERN • 979 billion square feet under
MIDTOWN CORRIDOR management
COVINGTON • Over 12,000 professionals
INT’L
AIRPORT
CEO | PRINCIPAL:
AIRPORT Shenan P. Murphy, CCIM
+1 513 721 4200
KENTON Colliers International | Greater Cincinnati
FLORENCE CAMPBELL 425 Walnut Street, Suite 1200
COUNTY Cincinnati, OH 45202
Colliers International statistics are audited annually
Industrial Services Greater Cincinnati
|
and may result in revisions to previously reported
quarterly and final year-end figures
Chuck A. Ackerman, CCIM, SIOR Erin M. Casey, GA-C, MICP™ Michael E. Daly, SIOR
Brokerage Senior Vice President Senior Brokerage Associate Brokerage Senior Vice President
chuck.ackerman@colliers.com erin.casey@colliers.com Principal | Cincinnati
DIR +1 513 562 2266 DIR +1 513 562 2225 mike.daly@colliers.com
DIR +1 513 562 2206
John B. Gartner, III, SIOR William K. Keefer, SIOR Steve R. Miller
Brokerage Senior Vice President Brokerage Senior Vice President Brokerage Vice President
Principal | Cincinnati Principal | Cincinnati steve.miller@colliers.com
john.gartner@colliers.com bill.keefer@colliers.com DIR +1 513 562 2252
DIR +1 513 562 2207 DIR +1 513 562 2235
www.colliers.com/cincinnati