Greater Toronto Area Industrial Market Report $ % $ msf. 4 th Quarter Partnership. Performance. MARKE T FAC TS.

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1 Greater Toronto Area Industrial Report th Quarter 1 Overview GTA Central GTA East GTA Nor th GTA West The Greater Toronto Area (GTA), Canada s largest (and North America s third largest) industrial market, had an active 1 with strong leasing velocity driven by consolidations and several large transactions. Despite this, availability and rental rates vary across the region and have not fully returned to pre-recessionary levels. The transition from a manufacturing to a distributioncentre and logistics market continues, with a number of modern build-to-suit and speculative facilities recently completed or under construction in the hopes of attracting one of the many U.S.-based corporations that continue to show interest in the GTA. After a strong start to 1, the GTA industrial market finished the year with some positive trends, and is poised for a busy 13. While the GTA East experienced a modest rise in availability, the remaining districts were either down or flat from the previous quarter. Deal momentum continued into the fourth quarter as a number of mid-size leases were finalized across the region, Partnership. Performance. $6.19 Average asking net rental rate psf in GTA North 3. msf Volume of industrial buildings under construction in the GTA West MARKE T FAC TS.% GTA industrial availability rate $.7 Average asking net rental rate psf in Mississauga notching down the overall availability rate by 1 basis points (bps) to finish 1 at an even %. The average asking net rental rate in the GTA climbed from $. per square foot (psf) in the third quarter to $. psf at year-end. GTA West, the largest industrial district with roughly of the GTA s inventory, remains active on the development and transaction fronts. Notable leases during the final quarter of 1 included Seydaco Packaging committing to over 1, square feet (sf) at 1 Courtneypark Drive East and Technicolour leasing over 13, sf at 79 Kennedy Road, both in Mississauga, while Hi-Tech Express negotiated over 11, sf at 1 Woodslea Road in Brampton. The market also welcomed Target Canada s new distribution facility comprising 1.3 million square feet (msf) at 8 Boston Church Road in Milton. Construction also started on a 9,-sf, 3-foot clear height speculative project at 3 Pendant Drive in Mississauga. In total, approximately 3. msf of industrial development was underway in the GTA West at the conclusion of 1. The availability rate fell 1 bps to close the year at.6%. Average asking net rental rates continue to improve, edging up to $.6 psf. The GTA Central market had a very strong showing in the final quarter of 1 with the largest decline in availability ( bps) to close the year at.%. One of the stronger-performing nodes in the GTA Central during the final three months was Scarborough, where availability declined by bps to end the year at.%. This was primarily due to availability decreasing by bps to.% in the Tapscott Business Park Scarborough s largest industrial park. There is currently a significant amount of available space in the Scarborough Highway 1 Corridor, largely due to the fully unoccupied space at 1 Metropolitan Road (Zellers former distribution centre). As the smallest industrial market, GTA East saw a marginal increase (+1 bps) in availability between quarters to end 1 at %. The uptick in availability was largely due to approximately, sf being marketed for lease in the Brock Industrial Park in Pickering. This prompted availability rates in the Brock Industrial Park (1.7%) and City of Pickering (9.) to move higher as 1 drew to a close. Average asking net rental rates for the GTA East industrial market remained relatively static quarter-over-quarter, finishing 1 at approximately $. psf. Despite having the second lowest availability rate (.6%) in the GTA, the GTA North industrial market still commands the highest rents among the major industrial districts, with an average asking net rental rate of $6.19 psf, an increase of $.17 psf over the previous quarter and $.6 psf above the GTA average of $. psf. Aside from the GTA West, the GTA North is the only other industrial region with an active development pipeline, including Home Depot s new national distribution centre in Vaughan. On the transaction front, Pareto Corp. inked a lease for 161, sf, consolidating three locations into 66 Leek Crescent in Richmond Hill.

2 GTA Industrial Report th Quarter 1 GTA O verall GTA - Industrial Trends GTA - Occupancy Cost Trends Total Area (, sf) 6% % % 1 % Q 11 Q1 1 Q 1 Q3 1 Q 1 Direct Area Sublet Area $1. $9. $8. $7. $6. $. $. $3. $. $1. $. Q 11 Q1 1 Q 1 Q3 1 Q 1 Asking Net Rent (Avg. $psf) Additional Cost (Avg. $psf) GTA - Space by Clear Height GTA - Large Block Availability >3 ft 8-3 ft -7 ft 18-3 ft <18 ft >, sf 1, - 9,999 sf, - 99,999 sf GTA MARKET SUMMARY GTA Central 6.% $.3 GTA East 7.% $. GTA North 17.6% $6.19 GTA West 36.6% $.6 GTA Total 89.% $.

3 GTA Industrial Report th Quarter 1 GTA Central GTA Central - Industrial Trends GTA Central - Occupancy Cost Trends Total Area (, sf) % % $1. % $. Q 11 Q1 1 Q 1 Q3 1 Q 1 Q 11 Q1 1 Q 1 Q3 1 Q 1 $9. $8. $7. $6. $. $. $3. $. Direct Area Sublet Area Asking Net Rent (Avg. $psf) Additional Cost (Avg. $psf) GTA Central - Space by Clear Height GTA Central - Large Block Availability >3 ft 8-3 ft -7 ft 18-3 ft <18 ft >, > sq. sf ft. 1, - 9,999 sq. ft. sf, -- 99,999 sq. ft. sf GTA CENTRAL - SUBMARKET SUMMARY East York 9. $. Etobicoke 7.7% $.1 North York 7. $.91 Scarborough 6.% $.7 Toronto 3 1. $8.33 GTA Central* 6.% $.3 * Total figures for the GTA Central include additional submarkets not listed above, ie York.

4 GTA Industrial Report th Quarter 1 GTA East GTA East - Industrial Trends GTA East - Occupancy Cost Trends Total Area (, sf) 3 1 $1. 6% $9. % $8. $7. $6. $. $. % $3. $. $1. % $. Q 11 Q1 1 Q 1 Q3 1 Q 1 Q 11 Q1 1 Q 1 Q3 1 Q 1 Direct Area Sublet Area Asking Net Rent (Avg. $psf) Additional Cost (Avg. $psf) GTA East - Space by Clear Height GTA East - Large Block Availability >3 ft 8-3 ft -7 ft 18-3 ft <18 ft >, sf 1, - 9,999 sf, - 99,999 sf GTA EAST - SUBMARKET SUMMARY Ajax 7 3.% $.83 Oshawa 1 3. $.86 Pickering 1 9. $. Whitby 1 6. $.6 GTA East* 7.% $. * Total figures for the GTA East include additional submarkets not listed above, ie Brock, Clarington, Scugog, and Uxbridge.

5 GTA Industrial Report th Quarter 1 GTA Nor th GTA North - Industrial Trends GTA North - Occupancy Cost Trends 1 6% $1. Total Area (, sf) 8 6 % % $1. $8. $6. $. $. % $. Q 11 Q1 1 Q 1 Q3 1 Q 1 Q 11 Q1 1 Q 1 Q3 1 Q 1 Direct Area Sublet Area Asking Net Rent (Avg. $psf) Additional Cost (Avg. $psf) GTA North - Space by Clear Height GTA North - Large Block Availability >3 > ft 8-3 ft -7 ft 18-3 ft <18 < ft >, sf 1, - 9,999 sf, - 99,999 sf GTA NORTH - SUBMARKET SUMMARY Aurora 6.6% $.7 Markham 6.% $6.76 Newmarket 9. $.63 Richmond Hill 1 7.% $6.6 Vaughan 1. $.7 GTA North* 17.6% $6.19 * Total figures for the GTA North include additional submarkets not listed above, ie East Gwillimbury, Georgina, King, and Whitchurch-Stouffville.

6 GTA Industrial Report th Quarter 1 GTA West Total Area (, sf) 1 1 GTA West - Industrial Trends Q 11 Q1 1 Q 1 Q3 1 Q 1 7% 6% % % % $1. $9. $8. $7. $6. $. $. $3. $. $1. $. GTA West - Occupancy Cost Trends Q 11 Q1 1 Q 1 Q3 1 Q 1 Direct Area Sublet Area Asking Net Rent (Avg. $psf) Additional Cost (Avg. $psf) GTA West - Space by Clear Height GTA West - Large Block Availability >3 ft 8-3 ft -7 ft 18-3 ft <18 ft >, sf 1, - 9,999 sf, - 99,999 sf GTA WEST - SUBMARKET SUMMARY Brampton 9.6% $.18 Burlington 6.% $.8 Caledon % $.3 Halton Hills 6. $.79 Milton 17.% $6.11 Mississauga $.7 Oakville 9 3. $6. GTA West 36.6% $.6

7 GTA Industrial Report th Quarter 1 GTA MARKET - SUMMARY OF TENANT OPTIONS Number of Buildings with Space with More Than, sf with 1, to 9,999 sf with, to 1, sf with, to, sf with Less Than, sf East York Etobicoke North York Scarborough Toronto 8 1 GTA Central Ajax Oshawa Pickering Whitby GTA East Aurora 1 Markham Newmarket Richmond Hill Vaughan GTA North Brampton Burlington Caledon 1 Halton Hills Milton Mississauga Oakville 9 18 GTA West

8 GTA Industrial Report th Quarter 1 GTA Central GTA East GTA Nor th GTA West SIGNIFICANT INDUSTRIAL LEASE TRANSACTIONS Address Tenant Size 86 Pillsworth Rd., Caledon Best Buy 68, sf 66 Leek Cres., Richmond Hill Pareto Corp 161, sf 1 Woodslea Rd., Brampton Hi-Tech Express 11, sf 1 Courtneypark Dr. E., Mississauga Seydaco Packaging Corp 13, sf 79 Kennedy Rd., Mississauga Technicolor 13, sf GTA INDUSTRIAL MAP For more information on this report, please contact: Avison Young Across Canada & the U.S. For a list of offices, please visit us at: Bill Argeropoulos Vice President & Director of Research Canada Anthony Hong Senior Research Analyst Avison Young 77 City Centre Drive, Suite 31 Mississauga, ON LB 1M T F Acknowledgement: Data for graphs, charts, and tables used in this report are sourced from Avison Young and Altus InSite Real Estate Information Systems Inc. 13 Avison Young Commercial Real Estate (Ontario) Inc., Brokerage. Some of the data in this report has been gathered from third party sources and has not been independently verified by Avison Young. Avison Young makes no warranties or representations as to the completeness or accuracy thereof.