Brokerage Outlook: Vermont

• Greater Burlington Retail

• Greater Burlington Industrial

• Greater Burlington Office

Greater Burlington Retail Submitted by Nick Grimley, commercial real estate agent with the Williston, Vermont, office of J.L. Davis Realty. Posted 3-21-06. What area is your expertise? • the greater Burlington, Vermont, area What trends do you see presently in retail development in your area? • The market is growing for retail space in the 1,000- to 5,000-square-foot range, along with freestanding sites that measure 1.5 acres. What type of retail product is doing well in your area? • 1,200- to 5,000-square-foot spaces located in larger, heavily trafficked centers What retailers are new to your area? • Starbucks Coffee, Verizon Wireless, Moe's Southwest Grill, Men's Wearhouse and Supercuts Who are the active retail developers in your area? • J.L. Davis Inc., The Inland Real Estate Group of Companies and S.D. Ireland Companies Please name one or two significant retail developments in your area. What impact will these projects have on the market? • Two major retail developments are: Taft Corners Park, a regional power center located in Williston. The owner is Taft Corners Associates, and the developer was J.L. Davis Inc. Tenants include Wal-Mart, The Home Depot, Circuit City and Bed Bath & Beyond. The second major development is Maple Tree Place, a retail and office development located in Williston. The center is owned by The Inland Real Estate Group of Companies and was developed by Starwood Ceruzzi. Tenants include Staples, Dick's Clothing and Sporting Goods, Best Buy, and Christmas Tree Shops. Where is the majority of development taking place? Why is this area doing well? • Williston, because of its access to Interstate 89, Exit 12. What area do you expect to be the next big retail development market? Why? • Williston, Colchester and the redevelopment of Essex will see the most development because of their central locations and proximity to residential developments. Please describe the retail leasing activity in your area. • currently very active for spaces in the 1,200- to 5,000-square-foot range What major leases have been closed recently? Starbucks Coffee, 1,800 square feet, Williston Road, South Burlington. Men's Wearhouse, 6,000 square feet, Route 2A, Williston. Please give a measure of retail vacancy rates. Please give a measure of available sublease space. • The vacancy rate in Chittenden County is currently 6.8 percent What types of retailers should look into your market in the coming year? What type of retail is needed? • Restaurants and service- and convenience-oriented retailers seem to be the most active in recent months. The area is in need of home products retailers, along with the types of retailers mentioned above.

Greater Burlington Industrial Submitted by Rick Harrison, commercial real estate broker with the Williston, Vermont, office of NAI/J.L. Davis Realty. Posted 3-23-06. What area is your expertise? • the greater Burlington, Vermont, area What trends do you see presently in industrial development in your area? • stable to strengthening in the smaller square foot ranges (5,000-20,000 square feet) What type of industrial product is doing well in your area? • 5,000- to 10,000-square-foot spaces Who are the active industrial developers in your area? • REM Development, LNP and Allen Brook Development Please name one or two significant industrial developments in your area. What impact will these projects have on the market? • The planned redevelopment of the former Specialty Filaments property on Pine Street in Burlington by Redstone Commercial (approximately 120,000 square feet) Where is the majority of development taking place? Why is this area doing well? • The majority of recent industrial development has been in Williston due to the close proximity to Interstate 89, Exit 12. What area do you expect to be the next big industrial development market? Why? • the Milton area because of available land and proximity to Interstate 89, Exit 17/18. Please describe the industrial leasing activity in your area. • stable Please describe the industrial sales activity in your area. • A minimum number of properties are currently for sale. Please give a measure of industrial vacancy rates. • Vacancy rates in the greater Burlington area are at 10.4 percent.

Greater Burlington Office Submitted by Rick Harrison, commercial real estate broker with the Williston, Vermont, office of NAI/J.L. Davis Realty. Posted 3-22-06. What area is your expertise? • the greater Burlington, Vermont, area What trends do you see presently in office development in your area? • The market is currently stable. Who are the active office developers in your area? • Investors Corporation of Vermont and Pizzagalli Construction Company Please name one or two significant office developments in your area. What impact will these projects have on the market? • Main Street Landing in Burlington. The owners/developers are Melinda Moulton and Lisa Steele. The project includes 64,000 square feet of office space. Where is the majority of development taking place? Why is this area doing well? • Burlington and South Burlington, Vermont, are doing well because of their proximity to Interstate 89, Exit 14 and the Burlington International Airport. What area do you expect to be the next big development market? Why? • We're not expecting major office development in the near future. What areas are doing well in terms of office leasing? Which areas are struggling with office leasing? • The market in this entire area is relatively stable. The areas that are struggling are suburban office spaces in the 1,000- to 4,000-square-foot range. Please give a measure of office vacancy rates. • 6.3 percent vacancy rate What is the status of job growth/(un)employment rates and what bearing will it have on the office market? • Relatively low unemployment rate of 3.3 percent. We won't see any effect on the office market unless unemployment starts rising. Right now it's stabilized at a low level.