Commercial Investment Real Estate May/June 2017

MARKET TRENDS Momentum Still Strong for Retail Bargain Hunters Top 10 U.S. Cities Lowest Industrial Vacancy Rates 2015 “With the growth of e-commerce, consumers have become increas- ingly price-aware and are now accustomed to the convenience and immediacy of online shopping, and brick-and-mortar retailers have been challenged to ﬁ nd ways to get those cus- tomers out of the comfort of their computer chairs and back into the store. Off-price retailers such as Nordstrom Rack and TJX Companies have proven to be somewhat immune to the threat of e-commerce because they offer customers a rapidly changing inventory of designer-quality products at signiﬁ cant discounts that can- not be easily found online, which gives these price-savvy customers the reward of a successful bargain hunt.” — Bob Smietana, CEO of HSA Commercial 2016 2017 2017* Philadelphia 6.8% Washington, D.C. 6.9% Hartford, Conn. 7.0% Sacramento, Calif. 7.2% Greenville, S.C. 7.3% Boston 7.9% Charleston, S.C. 8.5% Atlanta 9.0% Reno, Nev. 9.5% Phoenix 10.1% 0% 2% 4% 6% 8% 10% *Forecast for 2017 Source: Avison Young Five Major Trends Affecting CRE Cities becoming more powerful and inﬂ uential Cities taking the lead in tackling environmental concerns Technology having deep impacts on city dynamics City mayors and governors enlarging their roles Political upheavals threatening globally connected cities Source: JLL City Momentum Index 6 May | June 2017 COMMERCIAL INVESTMENT REAL ESTATE

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