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First Industrial Realty Trust's CEO Hosts Analyst Day - Conference Call Transcript

And again as I look out and think about the industrial space, what we love about it is that has something that the other asset class doesn’t, which is user buyers. That is, we can sell our properties when a user wants space, they come and buy it, they don’t buy on the same basis that a industry does, much better pricing and that’s one of the focuses we've been selling the assets to sell to users.

Secondly, industry is very financeable; it’s always about the underweighted cash with most vendors. We had good experience with it, it spikes high in terms of – so there is many more finance companies and insurance companies are growing on it. In terms of our investment and asset management strategy, again owning and operating industrial real estate is our business. We’re looking to do this on a long-term, we’re looking for long-term NOI growth and we’re looking to constantly upgrade the portfolio and again, that’s the key.

This chart to me it says a lot, in terms of its showing the supply at United States over the last 20 years of industrial space and what it shows, is that the average over the last 20 years, the 164 million square feet of space per year. What you are seeing again in 2009, 2010 year-to-date 2011, construction is falling off significantly i.e. over the last five quarters, there has only been 26 million square feet of new space. That’s a great thing for real estate.

In my experience, the best thing you can have with when supply starts, good things happen and you’re seeing that right now because what you had over the last five quarters, you had positive, you know 133 million square feet of absorption and so you’re going to be stopping up the vacancy in the cities around the country and (inaudible) are stabilizing and starting to go up and you’re going to see that it discontinues.

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