EFTA01388634.pdf

Exhibit 8. Vacancy and Rent Trends by Building Size Market vacancy by building size - Largo-bay had a better cycle. nd-bay coming back Large-bay led recovery, but now smaller stock is better strongly and Smaller buildings slower to recover 13% 12% 11% 6% 5% 0.8 2006 2007 2009 2011 2012 2014 2016 2006 2007 2009 2011 2012 2014 2016 E•klgs 400K. SF —01dgs 100K•300K SF 400K• SF —Sidgs 1001c4OCK SF Elk1gs <100K SF SIdgs <100K SF Mmkets AIL. ALM. BALT DOS CHAR. CHI, ON, COL. DFW. DEN OAK. NW. Wickets ATL. AUS. BALT. SOS. CHAR. CHI. CIR, COL. OFW, DEN. OW HOU INDY. IE- KC. LA, MEM. LISP. NASH. NNJ. OC, ORL, PHIL. PHX, FOX SLC. SO. INDY, IE. KC, LA. MEM. ESP, NASH, NW. OC. ORL. PHIL. Pt% PDX SLC. SO, SEA Si. SO FLA STL. WOG SEA SJ, SO.FLA STL. MCIC ‘144.-ce Deut6O., And ,lonterxre:nt iLealytc. . n 0 Mach ?71.3 — Class A Bilk Warehouse: Prices for large stabilized Class A bulk warehouse properties have increased markedly in recent years. in some cases surpassing replacement cost. These assets, leased long-term to credit tenants, can provide stable cash flow, but are generally underwritten to lower total returns. Target Class A assets in core submarkets where in-place rents are below current market levels. — Leasing-up I Development: In the context of healthy fundamentals, build-to-core should provide solid returns and a way to access scarce modern assets. Supply risks are rising in Dallas and Atlanta, but conditions are more favorable in New York/New Jersey, South Florida, Southern California, San Francisco Bay Area, Denver, Austin, Seattle and Portland. — National Distribution Hubs: The major national distribution hubs, many of which have strong finks to international trade (e.g., Atlanta, Riverside. Los Angeles. Chicago, New York, and Northern New Jersey) remain investment targets. While pricing is competitive and these markets are receiving a disproportionate share of new supply, they are expected to continue to post strong demand growth. — Underperforming Markets: The current development pipeline in Dallas could outpace demand, causing vacancy to rise and rent growth to taper amid leasing competition. Additionally. we would generally avoid markets where local demand drivers are impaired and vacancy rates are high, specifically in Baltimore and Washington D.C. Notably, Houston has experienced availability rate increases in the past few quarters and fundamentals are expected to weaken further in the near term, — Non-Warehouse: We maintain an underweight to high-finish industrial property, including light industriat/tlex, office/service, manufacturing and smaller business parks. Although conditions stand to improve in this growth cycle, over the longer term. they are tied to weaker segments of the economy and tend to be more expensive to lease and maintain than warehouses. We are highly selective in targeting research & development (R&D)/Office in only a few high-barrier markets that have good growth dynamics and/or tech drivers, such as San Jose. Oakland, Seattle, Orange County and Miami. U.S. Real Estate Strategic Outlook I Fiept4;r0Hr 7DI,S 13 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0092299 CONFIDENTIAL SDNY_GM_00238483 EFTA01388634