Key Takeaways Industrial Charleston

CharlestonVacancy Rate7.81%Key TakeawaysIndustrial E-commerce is boosting industrial demand Charleston has 18.69 million square feet of industrialbuildings either under construction or proposed to bebuilt21Q2 New construction will push rental rates up and vacancyrates downUnderConstructionYOYYOYNet Absorption612K SFQ3 FORECAST6.2M SFQ3 FORECASTOverall MarketNNN RentYOY 6.41/SFQ3 FORECASTYOYQ3 FORECASTE-commerce is still boosting industrial constructionE-commerce sales are predicted to increase by 13.7% during 2021 with e-commerce growth driving industrialdemand. Existing warehousing cannot accommodate a typical fulfillment and e-commerce user which is themajority of the industrial demand. Traditionally, warehouses in Charleston are rear load, 32’ ceiling height, 190’or below truck court which can accommodate an average manufacturing or industrial user. Fulfillment ande-commerce users generally need a cross dock facility with at least 40’ ceilings, stronger ESFR sprinkler heads,additional trailer parking and laydown yards for empty containers.Local Market Indicators14.4%UnemploymentRate1.420%GDP - Quarterly% Change Yr/YrTotal Inventory*(in Millions of SF)New Supply(in 00Q2Q3Q4Q1Q22018Net Absorption(in SF)545.9K440.6K612.3KOverall Vacancy10.4%8.6%7.8%Under Construction(in Millions of SF)1.53.26.2Overall NNNLease Rates (in /SF) 5.73 6.70 6.41* Total inventory based on buildings 20K SF or largerVacancy RateHistoric Comparison14.0%2,000,000U.S. 10 YearTreasury NoteAbsorption & New Supply3.59%Absorption, New Supply& Vacancy TrendsQ3Q4Q12019AbsorptionQ2Q3Q42020New SupplyQ1Q22021Total VacancyDespite overall vacancy rate fluctuations over the past twoyears, steady industrial demand drove it back down below 8%during the second quarter of 2021. Absorption is outpacingnew construction deliveries and is expected to continue to doso because overall industrial demand continues to increase.Recent TransactionsSaleNavy Yard at NoisetteN. Charleston 78K SFSaleCrowfield Corp. CenterGoose Creek 35.5K SFLease410 TradeportS.ville 247.8K SFLease1301 Chs. Reg. PkwyBerkeley Co. 115K S SFLease300 Trade ZoneS.ville 198.6K SFLease320-324 DemingS.ville 148.9K SFSources: Colliers, CoStar

CharlestonIndustrial21Q2E-commerce is still boosting industrial constructionSince online spending is growing rapidly, these users are scrambling to find the space, but are having to wait tobuild it. This leads to increased shipping rates, longer delivery times to consumer, and many other bottlenecks inthe supply chain. Therefore, new industrial construction will be necessary in the next few years to keep pace withshipping, storage and logistics needs. Charleston currently has 6.2 million square feet of industrial buildings underconstruction, and another 12.49 million square feet proposed to be built.The need for new construction will push rental rates up and vacancy rates down despite new deliveries becausetenants are competing for space. A construction boom will also create jobs and attract new residents to the area,thereby fueling demand for other types of industrial space.Charleston Capital InvestmentsJanuary 2021 - June 2021DateCompanyInvestment / JobsCountyIndustryApr-21M.C. Dean, Inc. 7.3M / 126CharlestonServiceApr-21Bourne Group 3.7M / 43CharlestonManufacturingMay-21ADMA Biologies- / 50CharlestonManufacturing - MedicalJun-21Robert Bosch 80M / 430CharlestonManufacturingJun-21Charleston Coffee Roasters 2.2M / 28CharlestonManufacturing - CoffeeJun-21Cummins Turbo Tech10.7M / 252CharlestonManufacturingJun-21Polestar Cars 118M / -CharlestonManufacturing- AutoJun-21Century Aluminum 60M / 100BerkeleyManufacturingDevelopment PipelineCharlestonSilverman FTZTotal to be Delivered:20211.33M SF2022 4.83M SFAMQ3 2021537,680 SFSilverman GroupJJACrosspoint Bldg. 2Charleston TradeQ3 2021Q4 2021182,000 SF1.02M SFChildress KleinKeith CorporationSONDJF20222021TriadBarkley Palmetto Comm.Q3 2021Wal-martPkwy46,950 SFDistributionQ3 2021Hardy WorldQ1 202280,350 SF3.0M SFMilton ThomasColliers South Carolina Charleston Q2 2021 Industrial ReportM

CharlestonIndustrial21Q2Coastal Port TonnageThe South Carolina Ports Authority is a dominanteconomic driver for South Carolina; it creates one in tenjobs within the State and approximately 63 billion inannual economic activity. The South Carolina Ports postedrecord cargo volume during the consecutive months ofMarch - June, 2021. Loaded imports were up 46.5% yearover-year during May of 2021 due to home goods andretail purchases. According to the South Carolina PortsAuthority, a capital spending plan of 349.4 million wasapproved for 2022 to enhance terminals, equipment, andthe information technology infrastructure, which will vastlyboost TEU volume in 2022. Also, the opening of the Hugh K.Leatherman terminal has greatly increased the overall portcapacity.Port of CharlestonAnnual Twenty-foot Equivalent Unit Volume(in Thousands)EMPTYIMPORTEXPORT373412936849Fiscal Year416 549 507 8201920202021Source: South Carolina Ports AuthorityInland Port TonnageSouth Carolina Ports Authority reported its strongest fiscalyear for both rail moves and cargo volumes at inland portsduring 2021. The two inland terminals both set cargorecords, rail moves were up 11.7% from one year ago.Inland Port Greer, located in the Upstate, reported 157,842rail moves in fiscal year 2021, a year-over-year increase of12.6%. Inland Port Dillon reported 35,002 rail moves in fiscalyear 2021, up 7.9%.Inland Port Greer & Inland Port DillonAnnual Twenty-foot Equivalent Unit Volume(in Thousands)03/21: 19,68804/21:16,24405/21: 13,598FY 20: 172,608FY 21: 192,844MONTHLYFISCAL YEARSource: South Carolina Ports AuthorityInfrastructure ImprovementsSouth CarolinaProject NameProject TypeDescriptionStatusEstimatedCompletion DateHugh K. LeathermanPortAdditional North Charleston containerterminalOpenQ1 2021Charleston InternationalAirportAirportAdding a third concourseConstruction to beginQ4 2021Q4 2023I-26 WideningRoadI-26 widening from four to six lanesfrom mile marker 85 to 101Under construction2024I-85 WideningRoadI-85 expansion in Spartanburg andCherokee CountiesUnder construction2021I-20 WideningRoadI-20 widening from four to six lanesfrom mile marker 49 to 60Under constructionQ3 2021Carolina CrossroadsI-26/I-20/I-126RoadI-26 from Exit 101 to Exit 107, I-20 fromExit 61 to Exit 65 & I-126 from Exit 107to Colonial Life BoulevardRight of waypurchase2030Colliers South Carolina Charleston Q2 2021 Industrial ReportSource: SCDOT, South Carolina Ports Authority

Charleston Q2 2021 Industrial Market SummaryMarketBuildingsInventory (SF)DirectVacant (SF)SubleaseVacant (SF)TotalVacant (SF)Total VacancyRate (%)NetAbsorption (SF)Average AskingRental Rate (SF/YR)Berkeley CountyFlex/R&D148,00024,000-24,00050,00%- ,676,468189,418-189,41811.30%247,830-Berkeley County Total91,724,468213,418-213,41812.38%247,830 12.00Flex/R&D9301,883135,083-135,08344.75%-8,176 10.36Manufacturing9462,737---0.00%--Clements 60395,9639.50%67,245 11.56Clements Ferry Total514,934,608421,786109,260531,04610.76%59,069 10.48Goose Creek / Moncks 1---0.00%--Goose Creek/MoncksCorner Total375,758,459---0.00%--Hanahan / North 3305,423-305,42341.36%- 00-Hanahan / North RhettTotal364,529,393305,423-305,4236.74%104,000 nufacturing392,675,32143,617-43,6171.63%- ,0001,527,68710.19%120,644 6.52North Charleston ,694 6.55North geville 011.26%35,500 00 0%--Summerville TotalOther ion221,069,061293,222-293,22227.43%-28,910 5.45Other ,749 5.45Charleston Overall 5 %35,000 9,2603,514,8909.50%546,309 6.20Market 2,344 6.41Colliers South Carolina Charleston Q2 2021 Industrial Report

CharlestonIndustrial21Q2Submarket Map4152BerkeleyCountyRidgevilleALT17Goose Creek /Moncks Corner785241SummervilleHanahan /North RhettALT1717NorthCharlestonClementsFerry17Colliers South Carolina Charleston Q2 2021 Industrial Report17

396 offices in68 countries on6 continentsUnited States: 153Canada: 29Latin America: 24Asia Pacific: 79EMEA: 111 3.3BMarket President:James R. (Jim) Garrett, Jr., MCRMarket President Charleston 1 843 723 1202James.Garrett@colliers.comMarketing & Research:Liz H. McCaryVice President of Marketing South Carolina 1 803 401 4269Liz.McCary@colliers.comCrystal Baker, CPRCResearch Coordinator South Carolina 1 803 401 4230Crystal.Baker@colliers.comContributors:in revenueMark Erickson, SIORVice PresidentCharleston2BMatt PickardBrokerage AssociateCharlestonsquare feet under management17,000 Chloe HeiligensteinBrokerage AssociateCharlestonprofessionals and staffIn January 2021, Colliers benchmarked its industrial data set statewide. The newstandard for collection is all industrial buildings 20,000 square feet or larger thatcan be readily adapted to an alternative industrial use. All properties were placedinto a revised set of markets and submarkets and divided into three categories.Warehouse/Distribution, a facility primarily used for the storage or distribution orboth of materials, goods and merchandise. Manufacturing, a facility used for theconversion, fabrication or assembly of raw or partly wrought materials into productsor goods. Flex/R&D, a building designed to be used in a variety of ways with at least30% of the rentable building area used as office. It is usually located in an industrialpark setting. Specialized flex buildings can include service centers, showrooms,offices, warehouses and more. Due to the adjustments of the building inventory,comparison of data included in previously published market reports should beavoided.About Colliers South CarolinaColliers South Carolina has over 150 staff members, including 62 licensedreal estate professionals, covering the entire state with locations in Charleston,Columbia, Greenville and Spartanburg. Total 2020 brokerage volume exceeded 533 million, which included over 456 sales and leasing transactions. In additionto traditional commercial real estate representation services for our clients, thecompany is actively engaged in Corporate Solutions and Healthcare Services. Colliersis an Accredited Management Organization (AMO) through the Institute of RealEstate Management (IREM) and is the largest manager of commercial real estateproperties in South Carolina, with a portfolio of over 16 million square feet of office,industrial, retail and healthcare properties. Colliers International’s staff hold 49professional designations, the most of any firm in South Carolina. Colliers SouthCarolina’s partner, LCK, provides project management services for new facilities andrenovations across South Carolina.40 Calhoun Street, #460Charleston SC 29304 1 863 723 1202colliers.com

Navy Yard at Noisette N. Charleston 78K SF Lease 320-324 Deming S.ville 148.9K SF Lease 300 Trade Zone S.ville 198.6K SF Lease 1301 Chs. Reg. Pkwy Berkeley Co. 115K S SF Lease 410 Tradeport S.ville 247.8K SF Sale Crowfield Corp. Center Goose Creek 35.5K SF Sou