Oklahoma City Mid-Year Retail Market Summary

Transcription

1 Oklahoma City Retail Market Summary

2 TABLE OF CONTENTS Retail Market Summary 1-2 Sales Summary 3 Planned Development 3 North Submarket 4-5 Northwest Submarket 6-7 South Submarket 8-9 Edmond Submarket West-Central Submarket Moore / Norman Submarket Eastern OK County Submarket ICSC Article Back Cover The information contained herein has been obtained from reasonably reliable sources. Price Edwards & Company makes no guarantee, either express or implied, as to the accuracy of such information. All data contained herein is subject to errors, omissions and changes. Reproduction in whole or in part, without prior written consent is prohibited.

3 Oklahoma City Retail Market Summary The Economy & the Retail Market Here is the progression: 2008 was a shock, 2009 was depressing, 2010 is a year of hope; and, perhaps, 2011 will be a year of action. Virtually everyone owners, retailers, brokers (okay, maybe not bankers) feels better about the economy and where the retail market is today. No doubt, part of this hope is fueled by the belief that 2009 saw the bottom of the recession and the retail market. We ve pulled back from the precipice and adjusted to the realities of the marketplace. Nationally there has been some good news: GDP growth is up slightly, unemployment is down slightly, corporate earnings have generally been pretty good. Consumers are gradually starting to think good thoughts (see the ICSC consumer survey results on the back cover). National retailers have gotten lean and generated better operating numbers by reducing inventory, downsizing staffs, closing unproductive stores. National and regional retailers are dusting off expansion plans and beginning to look forward. This is confirmed by the significant increase in interest we ve seen from the retailers we represent as well as the activity at properties we lease. Most of the interest is cautious and in preliminary stages at this point, but it s a good sign retailers are talking and beginning to look for space. Our sense is that if retailers begin looking now, it will be for deals in 2011 and 2012 although a few may get done this year. Our hope is tempered by a lingering sluggishness in the general economy. Despite the positive economic trends, the amount of national debt, state government funding problems, stubbornly high unemployment, and the continued shake-up of large parts of our economy health care, environmental regulation, financial regulation continues to create uncertainty. As we ve discussed in prior reports, uncertainty acts as a drag on consumer spending. Consequently, we see a period over the next 18 months of good news and progress intermixed with setbacks. Two steps forward and one step back if you will. It just won t feel like we ve made great strides but at the end of 2011 we ll look back and see that the market improved markedly and that we are poised for significant growth. In this interim period, let s review a few trends taking place in the retail market. Restaurants and discounters have been the most active retailers over the past year; expect this trend to continue. Many second tier retailers are realizing that they can, because of vacancies and lower rates, acquire locations that they could never have had access to in a strong market. This window is closing and these retailers will need to act. Large box vacancies being taken off the market are generally leased at rates 30 to 50 percent lower than the previous tenant and to tenants that are a lower quality credit. Additionally, most national and regional tenants are not exercising renewal options which contain increases but are negotiating new deals to stay at existing or reduced rates. This window is closing as well, but slowly. As a result, 2011 may be the worst year yet for owners given the cumulative effects of the closures over the past two years, lower current lease rates and the hard bargains tenants are driving on renewals. It takes a couple of years for the full effects of a downturn to be felt by owners. (millions of square feet) (millions of square feet) % 12% 9% 6% 3% 0% OKC Total Retail Market Inventory 2006 OKC Total Retail Market Vacancy GLA SF Freestanding SF OKC Total Retail Market Absorption In addition to the sluggish economy making retailers cautious about expansion plans, most have cut inventories and staffs over the past two years. Gearing up will take some time. Many retailers have also changed their ideal store size Staples, Walmart, Old Navy, Bed, Bath & Beyond among others have reduced their footprint. 1

4 Existing deals are being cut with owners to reduce current spaces. Overall, this will create new vacancies, and in some cases, owners will get back oddsized or difficult to lease space. New space requirements will be less. Constrained capital markets make it harder for owners to fund new deals or the tenant improvements for downsizing tenants. Lack of capital also limits retailers ability to fund their expansions both in terms of real estate and inventory. As a result, owners with deep pockets and retailers with strong balance sheets will be in a favorable position. Survey Summary Note: Heritage Park Mall has been closed as a retail mall and we do not anticipate it re-opening as retail. Consequently, we are taking the Mall out of our survey and re-classifying the still open Sears store as a freestanding building. Crossroads Mall, which is 75% vacant and for sale, remains in the survey for now. This survey evaluates the occupancy of 230 retail centers (in excess of 25,000 s.f.) containing approximately 28.2 million square feet. In addition, we will be looking at the overall market, including freestanding properties that are not part of a shopping center. We have surveyed 235 freestanding buildings containing in excess of 12.3 million square feet; at mid-year, approximately 4% of this space was vacant. With these two types of properties combined, we have about 40.5 million square feet of space available for retail use (excluding strip centers with less than 25,000 s.f.). Market vacancy equaled 14.0% at midyear. For comparison purposes, adding back in the Heritage Park vacancy puts the market vacancy at 14.8%, the same as year-end. If you take both Heritage Park Mall and Crossroads Mall out of the survey, the market vacancy stands at 10.9 percent, unchanged from year-end. Clearly there has been some activity in the market, but mostly tenants moving or upgrading locations. And, any space taken by new tenants to the market or expansions has been roughly equaled by closures or newly built space added to inventory. There continues to be a significant number of smaller strip centers in the market (under 25,000 s.f. in size). We would estimate there are easily 3 million square feet of these properties in the market. Many of these centers are struggling in the current recessionary market. Classen Curve - OKC Town Center - Midwest City OKC Retail Market Totals GLA SF Vacant SF Vacant % 28,205,766 3,953, % 2

5 Sales Summary The sales market is still sputtering. In May, the Whittaker Foods anchored May Ten Trade Center sold for $1.2 million (41,325 s.f.); otherwise, there have been no other sales of over 25,000 s.f. A lack of financing and a continuing gap between the expectations of buyers and sellers are keeping any transactions at bay. We often get asked about capitalization rates; with no sales, any discussion of cap rates is somewhat academic. Nonetheless, we believe that current rates would most likely be between 9 percent and 11 percent depending upon asset quality and occupancy. Existing property values would then be 25 to 30 percent lower than at the height of the market in Most owners have seen only modest declines in operating income and have, to this point, been unwilling to accept offers that reflect such a decline. There are a number of buyers are in the market, but they are generally looking for acquisitions based on real numbers at the higher cap rates. Planned Development As noted in previous reports, the continuing national recession combined with constricted capital markets has shut down virtually all new development. However, a few projects are either underway or about to break ground: Crest is building a new 80,000 s.f. store at SW 104th and May in Oklahoma City with 16,000 s.f. of small shop space along 104th street. The Crest store is expected to open in the third quarter. Whole Foods announced that they will open a 35,000 s.f. store on Classen & Grand in Chesapeake Energy worked hard to attract the upscale grocery to their site which is a coup for Oklahoma City retail. Target has purchased land at Fritts Farm to build a new store along 149th street; construction is expected to start in the upcoming weeks. This will be one of only 10 new Target stores opened in the country this year. The lack of available capital, which has been a problem, may get worse before it gets better. Regulators are hammering banks about their bad loans and their exposure to real estate in particular. And, the financial regulation now before Congress would raise bank capital requirements and reduce their lending concentrations. Securitized loans remain a problem around the country, by most counts, approximately 8 percent are delinquent and the rate is expected to rise to 12 percent by year-end. For the next year, we see a modest increase in transactions on opposite ends of the spectrum: sales of distressed properties and a few high-end projects as institutional owners re-align portfolios. But, until capital markets thaw and the expectation gap closes somewhat, transactional volume will remain at historically low levels. As to new development, joint ventures with life companies and other institutional owners may be one of the only initial options for developers as these types of investors can provide the level of equity now demanded by lenders. The Horizon Outlet Mall along I-40 on the old AT&T land is reportedly over 75% pre-leased and still on track though financing difficulties have delayed the project. It is still expected to break ground yet this year. We anticipate all of these projects being successful. Crest will help meet the grocery demand in an underserved south market. Whole Foods is the first upscale grocer to our market whose arrival is highly anticipated. The new Target store will serve the growing south Oklahoma City and Moore markets that now either have to drive to Norman or go to 44th and Western. And, the Horizon Outlet Mall will bring a number of retailers to our market that are not currently here. It s no coincidence that these types of projects will be the first out of the ground as we begin to see retail improvement, proven retailers in good locations meeting a specific demand. S ales Summar y & Upcoming Development s There are five classes of shopping centers being evaluated. A centers are super regional centers containing in excess of 900,000 square feet. B centers are regional centers containing from 300,000 to 900,000 square feet. Class C centers are those community shopping centers with 100,000 to 300,000 square feet. Class D centers contain 30,000 to 100,000 square feet and are classified as neighborhood strip centers. E centers are strip centers with 25,000 square feet to 30,000 square feet. You will be able to see how each of the classes of centers in each sector are performing. 3

6 Oklahoma City Retail Market Summary North Submarket Nor th Survey Summary The Memorial Corridor lies at the heart of this submarket, contains nearly 3 million square feet and is arguably Oklahoma City s most desirable retail location. All the major national retailers that are in our market have locations here. Quail Springs Mall is a solid anchor; its owner, General Growth is expected to emerge from bankruptcy by year-end. The Belle Isle area with Oklahoma s best performing Mall, Penn Square, highlights the south end of the submarket. With a predominance of national retailers, the submarket as a whole has a few holes from closures but has remained relatively strong. The vacancies for the area continued to increase, reaching 8.9 percent at mid-year compared to a year-end vacancy rate of 7.8 percent and 5.5 at year-end Outlook The increase was generally across the board in neighborhood centers, suggesting that local tenants are hurting as the recession drags on. We also moved Classen Curve and Highland Park Center to the survey after listing them as under construction last year. Overall, this submarket is probably reflective of the market as a whole: a number of vacant big box spaces that has been vacant for some time with few desirable replacement options and a growing concern for small tenants the longer the economy wanders sideways. (thousands of square feet) 10% 8% 6% 4% 2% 0% North OKC Submarket Retail Vacancy 2006 North OKC Submarket Retail Absorption 2010 Year-End Classen Curve

7 Oklahoma City Retail Market Summary North Submarket Center Class Year Built Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenant(s) 50 Penn Place C 1973/85/00 CBRE/Oklahoma 141,075 43, % $12.00 $0.00 Bank of Oklahoma NW 50th St & N Pennsylvania Ave Inman/Graham 6900 Place D 1981/91/92 Levy Beffort 49,502 19, % $8.00 $10.50 Ted's Cafe 6900 N May Ave Jim Rose Blockbuster Belle Isle Station B 2000 Price Edwards & Co. 433,333 42, % $18.00 $23.00 Wal-Mart Super Center NW Expressway & N Classen Blvd Susan Brinkley, Laci Jackson, Karleen Krywucki, Ev Ernst Old Navy Britton Plaza Shopping Center E Gerald Gamble Co. 27,340 5, % $8.00 $8.00 Johnnies' Charcoal Broiler 2648 W Britton Rd Gerald Gamble Britton Square D 1983 Coury Properties 27,326 8, % $10.50 $0.00 Beauty Alliance 9415 N May Ave Gourmet Yarn Company Camelot Square C 1984 Blanton Property Co. 107,799 3, % $0.00 $0.00 Cox Communications NW 122nd St & N Pennsylvania Ave Jeff Bolding Casady Square C 1953/83/95 Price Edwards & Co. 159,396 31, % $7.00 $12.00 CVS Pharmacy W Britton Rd & N Pennsylvania Ave Laci Jackson, Susan Brinkley, Ev Ernst Walmart Neighbor Mkt Centennial Plaza B 1993 CBRE/Oklahoma 233,794 2, % $10.00 $14.00 Best Buy NW 58th St & N May Ave Mark Inman Home Depot Charter At May D 1963/88/96 The Boettcher Companies 99,757 1, % $11.00 $6.50 Luby's Cafeteria 9494 N May Ave Fred Boettcher Mill Creek Classen Curve C 2008 Blanton Properties 72,400 38, % $18.00 $ Degrees NW Grand Blvd & N Classen Blvd Balliet's Colonial Plaza C Sperry Van Ness 122, % $0.00 $0.00 Homeland 9225 N May Ave Tim Strange Cato Colonnade D 1984 Brady's Properties 78,000 1, % $9.00 $0.00 Party Bazaar 9600 N May Ave Ali Ghaniabadi Boca Boca Country Club Corner D 1959/96 JAH Realty, LP 53,477 28, % $11.00 $0.00 Half Price Books 6410 N May Ave Jeff Norman, Ethan Slavin Hollywood Video Country Club Village D 1970/92/03 NAI Sullivan Group 38,436 5, % $12.00 $12.00 Fitness Together 2800 W Country Club Dr David Harnack Edward Jones, Heritage Trust Cross Rock Plaza E 2001 Dan Ward Companies 25,060 1, % $18.00 $20.00 ME/CU Credit Union W Memoral Rd Chris Bruel Fenwick Plaza D 2009 Lease Space OKC 35,304 26, % $13.00 $ N Pennsylvania Ave Gretchen Bybee French Market Mall C 1985 CBRE/Oklahoma 244,742 6, % $8.00 $18.00 Bed Bath & Beyond 2850 NW 63rd St Mark Inman Staples Highland Park Retail Center D 2009 Steve Walters 26,369 13, % $17.00 $0.00 Louie's W 189th St & N Western Ave Steve Walters Lapels Dry Cleaners Lakehurst Plaza D 32,637 7, % $12.00 $ N May Ave Jason Little Lakeside Shops Shopping Center D 1950/99/07 Pippin Properties 67,000 13, % $15.00 $12.00 Firestone 7500 N May Ave Phil Pippin Freddie Frozen Custard Lakewood Shopping Center D The Pilchner Group 55,247 2, % $8.50 $0.00 Mazzio's 6901 N May Ave Gaby Villarreal Cokesbury Bookstore Mayfair Place D 1978 Price Edwards & Co. 95,000 10, % $10.00 $0.00 Akin's Health Foods 2900 NW 63rd St Karleen Krywucki PetsMart, Big Lots Memorial Square C CBRE/Oklahoma 225,000 37, % $8.00 $18.00 Super Target W Memorial Rd & N Pennsylvania Ave Inman, Graham PF Changs Midland Center C 1961 Price Edwards & Co. 54,272 3, % $0.00 $0.00 Conn's NW Expressway Susan Brinkley, Ev Ernst, Laci Jackson Panera Bread Nichols Hills Plaza C 1963 Chesapeake Energy 130,000 3, % $12.00 $16.00 Crescent Market 6501 Avondale Dr Steve Barwick Starbucks North Penn Plaza D 1970/71 Steve Hetherington 32, % $0.00 $0.00 Koslow's 5601 N Pennsylvania Ave Steve Hetherington Commercial Federal Bank Northpark Mall C 1971/81 Morris Enterprises 200,000 40, % $0.00 $0.00 Shogun Steak House N May Ave Kevyn Colburn B.C. Clark Penn Square Mall A 1960/88 Simon Property 1,100,000 5, % $0.00 $0.00 JC Penney 1901 NW Expressway Simon Property Macy's Penn-Hefner Plaza D 1973/77 Haydel Associates 69, % $12.00 $14.00 Buy For Less 2121 W Hefner Rd Aimee Dial Parrish Beauty World Quail Plaza C 1965/89/91 Morris Enterprises 144,335 30, % $10.00 $15.00 USA Baby N May Ave Kevyn Colburn Goodyear Tire Quail Springs Mall A 1980/98/99 General Growth Mgmt.,Inc. 1,124,482 16, % $0.00 $0.00 Macy's W Memorial Rd & N Pennsylvania Ave Kelly Waswo JC Penney Quail Springs MarketPlace B Centro Properties Group 450,000 6, % $0.00 $0.00 Ultimate Electronics W Memorial Rd & N Pennsylvania Ave Marcia Minton Lowe's Quail Springs Village E 1983 JAH Realty, L.P. 26,500 5, % $16.00 $20.00 RadioShack N Pennsylvania Ave Ethan Slavin Pier 1 Imports Quail Village D 2007 Grubb Ellis/Levy Beffort 49,845 13, % $18.50 $20.00 Tan & Tone N May Ave Jim Rose Edwards Jones Shoppes at North Pointe D 2002 Mazaheri, Investments 37, % $15.00 $0.00 Chase Bank W Memorial Rd & N May Ave Fred Mazaheri Jimmy's Egg Shops at the Veranda B 2006 Grubb Ellis/Levy Beffort 30,650 29, % $19.00 $ th St & N Western Ave Michael Almaraz Sportsmen''s Warhouse Center E 2005 Hawkins Companies 66,662 44, % $9.00 $18.00 AT&T Flagship Store 2301 W Memorial Rd Ryan Manteuffel Spring Creek North D 1981 Price Edwards & Co. 89,006 2, % $11.00 $0.00 CVS Pharmacy N May Ave Laci Jackson, Susan Brinkley, Ev Ernst Homeland The Plaza at Quail Springs E 2005 JAH Realty, L.P. 104, % $14.00 $0.00 Fabrics Unlimited 2221 NW 138th St Ethan Slavin Dollar Tree Town & Country Village D 1982/92 Brady's Properties 43, % $12.00 $0.00 Cocina De Mino N May Ave Ali Ghaniabadi Subway Village at Quail Springs C 2004 Inland Companies 100, % $0.00 $0.00 Gordmans 2201 W Memorial Rd Laurie Long Best Buy Village Park* E 1972 CBRE/Oklahoma 25,000 13, % $6.00 $10.00 Hi Performance Scuba N May Ave Alaina McGlothlin, Ryan Storer Audio Dimension Village Park* North E Coldwell Banker 16, % $0.00 $ N May Ave Lee Bollinger Village Plaza (Waverly Crossing) D 1964/73/89 Legacy Properties 49,133 2, % $9.50 $0.00 Westlake Hardware 1505 W Britton Rd Sheryl Redwine Dollar General Wilshire Village E 1986 Dr. Scott Samara,M.D. 27, % $11.00 $12.00 Dodson Art Gallery W Wilshire Blvd & N Western Ave Dana Makeup Bar North Totals 6,419, , % Nor th 5

8 Oklahoma City Retail Market Summary Northwest Submarket Nor thwest Survey Summary The northwest market saw an increase in vacancy to 14.7 percent from 12.9 percent in December. The vacancy is spread across the market with a few of the larger projects seeing some junior anchor space becoming vacant. There has been no development in this submarket. The market is dominated by neighborhood centers along Northwest Highway. Eight of the 30 centers surveyed have over 30,000 square feet of vacancy. Clearly, some tenants have struggled in this market, but restaurant sales in much of the submarket have been quite strong. Age, accumulated deferred maintenance and outdated design hurt several centers in this market. Outlook Given the performance of restaurants in the submarket, a number of restaurants are actively looking for space. And, there are deals pending on a couple of the larger vacancies. This submarket could very well see an improvement in occupancy over the next several months. No new development is in the works to our knowledge. As previously noted, once the retail market rebounds, the focus of retailers could very well be along the Memorial corridor to the north, creating issues for the Northwest Highway corridor. (thousands of square feet) Northwest OKC Submarket Retail Vacancy 15% 12% 9% 6% 3% 0% Northwest OKC Submarket Retail Absorption Silver Springs Pointe

9 Oklahoma City Retail Market Summary Northwest Submarket Center Class Year Built Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenant(s) 122nd & MacArthur D 1985 Grubb Ellis/Levy Beffort 42, % $7.00 $10.00 Wall's NW 122nd St & N MacArthur Blvd John Cohlmia Pizza Hut Delivery Brixton Square C 1985 GBR Properties, Inc. 89,607 8, % $10.00 $13.00 Clear Sight 7101 NW Expressway Bob Parker Party Galaxy Circuit City Center D CBRE/Oklahoma 49,339 31, % $8.50 $0.00 Century 21 Lake Hefner Pkwy & NW Expy Inman, Graham Casual Male Cornerstone Plaza D 58/78/2003 NAI Sullivan Group 141,049 1, % $10.00 $5.00 Jackson Hewitt NW 39th St & N MacArthur Blvd David Hartnack Ocean Dental Council Crossing C 1986/92/03 NAI Sullivan Group 142,197 34, % $10.00 $12.00 Buy For Less 8101 NW Expressway David Harnack Chelino's Courtyard Plaza D 1984 Levy Beffort 38,998 9, % $12.00 $14.00 Blockbuster 6401 NW Expressway Jim Rose At The Beach Lakeshore Shopping Center C 2002 The Pilcher Group 139,447 28, % $8.50 $8.00 Academy Sporting Goods 4200 NW Expressway Gaby Villarreal Jason's Deli Lakeshore Shops D 1998 Charles Shadid 33,140 3, % $5.00 $8.00 Bangkok Restaurant 7930 N MacArthur Blvd Charles Shadid Al's Bicycles MacArthur Shops E 1983 CBRE/Oklahoma 25,630 4, % $12.00 $14.00 SRO Dance Studio W Britton Rd & N MacArthur Blvd Ryan Storer Market Place OKC C 1985 Grubb Ellis/Levy Beffort 178,854 42, % $12.00 $ NW Expressway Louis Almaraz Market Plaza C 1981/82 Levy Beffort 151,439 37, % $8.00 $11.00 Tuesday Morning 7001 NW Expressway Jim Rose Westlake Hardware MayFair Village C 1948/90 Price Edwards & Co. 174,911 43, % $14.00 $10.00 Michael's NW 50th St & N May Ave Susan Brinkley, Ev Ernst, Laci Jackson Steinmart Newport E 1972 Charles Shadid 25,740 4, % $5.00 $6.00 Seven-Eleven 9120 N MacArthur Blvd Charles Shadid Sunshine Laundry Oklahoma City Market Square C 1983/00 Price Edwards & Co. 143,579 17, % $7.00 $9.00 Family Leisure 8400 NW Expressway Susan Brinkley, Laci Jackson, Ev Ernst Dress Barn Peppertree Square D 1984 Grubb Ellis/Levy Beffort 77,938 19, % $8.00 $8.00 Tan & Tone America 6444 NW Expressway Jim Rose Portland Plaza C 1994 JAH Realty, L.P. 103,312 21, % $12.00 $7.00 Locke Supply NW 39th St & N Portland Ave Ethan Slavin Quailbrook Center D 1987 Levy Beffort 90,389 1, % $12.50 $0.00 Panera Bread 4401 W Memorial Rd John Cohlmia, Louis Almaraz Mercy Health System Rock Center E 1982 Grubb & Ellis Levy Beffort 29, % $10.50 $0.00 Avis 6710 NW Expressway John Colimia H&R Block, Avis Rockwell Crossing E CBRE/Oklahoma 30,200 7, % $14.00 $12.00 First Class Learning N Rockwell Ave Stuart Graham, Brian Donahue Rockwell Northwest C 1984/99 JAH Realty, L.P. 163,000 16, % $10.00 $14.00 Hobby Lobby 7000 NW Expressway Ethan Slavin Chick-Fil-A Rockwell Plaza B Medallion Real Estate 414,507 46, % $12.00 $18.00 Target 8375 N Rockwell Ave Chris Bruehl Ross Dress for Less, Petsmart Silver Springs B 2000 CBRE/Oklahoma 700,000 38, % $8.00 $15.00 Wal-Mart 7600 NW Expressway Stuart Graham Home Depot Springbrook D 1968 First Commercial Mgmt, Inc. 50,000 2, % $7.50 $0.00 All American Fitness 6207 NW Expressway John W. Meek, RPA Springdale C 61/86/93/99 Grace Commercial 126,000 22, % $7.00 $5.00 Rent Way NW 50th St & N Meridian Ave Mary R. Grace, Larry Emmer Dollar General Walnut Village D 1986/00 Howard Properties 53,850 3, % $10.50 $0.00 Lady Of America NW 122nd St & N Rockwell Ave Bill Howard Warr Acres D 1950/94 Ken Park 34,400 2, % $10.00 $0.00 Big Red Shop NW 50th St & N MacArthur Blvd Ken Park Taj Grocers Warwick D 1985 Ta Enterprises 69, % $8.00 $0.00 Crest N Rockwell Ave Moon Ta Dollar General Warwick Crossing D 1995 NAI Sullivan Group 31,804 8, % $9.75 $0.00 Westside Batting Cages W Hefner Rd & N Rockwell Ave David Hartnack FX Salon Warwick Plaza D 1978/84 Grubb Ellis/Levy Beffort 45, % $8.00 $0.00 State Farm Insurance NW 122nd St & N MacArthur Blvd John Cohlmia Wall's West Park Mall C 1972 GBR Properties, Inc. 130,155 59, % $16.00 $0.00 US Post Office NW 63rd St & N MacArthur Blvd Randy Valencourt Homeland Northwest Totals 3,525, , % Nor thwest 7

10 Oklahoma City Retail Market Summary South Submarket South Survey Summary Big box vacancies in this submarket remain a problem: the original Walmart building, both the new and old Circuit City buildings, and the original Burlington Coat location along I-240. It appears that 240 Penn Park is close to a deal to fill their vacant Circuit City, albeit at a significant reduction in rate. Pier One has closed, but is to be backfilled by Half Price Books. This is another sector that also has a significant amount of older product, although a number of older centers in and around Capitol Hill are doing very well focusing on the growing Hispanic market and we are seeing some upgrading as a result. Crossroads Mall is 75 percent vacant and being marketed for sale. It remains to be seen whether the Mall will remain retail upon a sale. If you take Crossroads Mall out of the calculation, the overall submarket vacancy is 16 percent, unchanged from year-end. South Shields Plaza and Almonte Square account for a third of the remaining vacancy. Outlook The I-35 corridor in Moore and Norman continues to hurt this submarket. The new Crest on 104th and May will be a welcome addition to this market; a third quarter opening is expected. Hobby Lobby has announced the closing of their store at 89th and Western; the store may be relocated or closed altogether. Demographically, the southwestern portion of the south submarket is strong but it is not of sufficient density to drive development. The Hispanic market to the north is viewed as a specialty market by most retailers. Consequently, it may be several years before any significant new development occurs. (thousands of square feet) 35% 30% 25% 20% 15% 10% 5% 0% South OKC Submarket Retail Vacancy South OKC Submarket Retail Absorption Chatney Square

11 Oklahoma City Retail Market Summary South Submarket Center Class Year Built Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenant(s) Crest Center C 2010 Grubb Ellis/Levy Beffort 96,000 12, % $20.00 $0.00 Crest Foods SW 104th & S May Ave John Cohlmia North Construction Totals 26,369 13, % Center Class Year Built Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenant(s) 119th Street & Market Place E JR Fulton 27,480 14, % $0.00 $0.00 Lemon Grass SW 119th St & S Western Ave Brad Worster Papa Murphys 29th & Kentucky Shops D 1970 L & S Real Estate 32,500 1, % $4.00 $0.00 Family Dollar SW 29th St & S Kentucky Ave Young Shin New Century Food 74 South Centre D 1973/77/06 Paul B. Odom Construction 50,000 1,500 3% $12.00 $14.00 Pancho's Mexican Rest. SW 74th St & S Pennsylvania Ave Linda Brown At the Beach 89'er Plaza E 1984 Robert Jenks 30,000 7,500 25% $4.00 $0.00 Body Beautiful SW 89th St & S Walker Ave Robert Jenks Sharp Cleaners Airline C 1999 Charles Shadid 121,368 9, % $3.00 $5.00 Tom's Tires 3400 SW 29th St Charles Shadid El Rodeo Carnecaria Almonte Square C 1963 Blanton Property Co. 107,676 74, % $0.00 $0.00 Almonte Bingo 6100 S May Ave Jeff Bolding Brookwood North I & II D 1998 Charles Shadid 58,249 6, % $5.00 $7.00 China Wok Restaurant SW 89th St & S Western Ave Charles Shadid Chelino's Restaurant Brookwood Shopping Center C 1979/97 Precor Ruffin, LLC 129,772 27, % $9.00 $14.00 Hobby Lobby SW 89th St & S Western Ave Rick Pritchett Centre 8400 E 1984 Precor Ruffin, LLC 29,355 1, % $9.25 $0.00 H&R Block 8400 S Western Ave Rick Pritchett Johnnie's Bakery Chatenay Square C PB Odom, III 114,115 4, % $16.50 $0.00 Homeland SW 104th St & S Pennsylvania Ave PB Odom, III Panera Bread Country Park Shopping Center D 1978 NAI Sullivan 30,000 4,500 15% $4.00 $0.00 Value Thrift SW 59th St & S Agnew Ave James Durocher Diaper Outlet Crossroads Mall A 1974/92 Price Edwards & Co. 1,267, , % $10.00 $30.00 Bath & Body 7000 Crossroads Blvd Jim Swenson Victoria's Secret Crossroads Shopping Center D 1987 AMCON Resources 31, % $13.00 $0.00 Heritage College 7100 S. I-35 Service Rd. Allen Gann Subway Economy Square C 1963/98 Economy Square Inc. 203, % $0.00 $0.00 Buy For Less SW 29th St & S May Ave Charles Oppenheim Walgreens Grant Square C 1958/91/92 Price Edwards & Co. 103,810 25, % $8.00 $5.00 Family Dollar SW 44th St & S Pennsylvania Ave Susan Brinkley, Laci Jackson, Ev Ernst Blockbuster Video Greenway Plaza D 1985 Levy Beffort 73,240 7, % $11.00 $0.00 Westlake Hardware SW 119th St & S Western Ave Jim Rose Tuesday Morning Hillcrest Shopping Center D N/A Blanton Property Co. 50,000 25,000 50% $0.00 $0.00 Dollar General 2100 SW 59th St Jeff Bolding Rent-A-Center I-240 Penn Park Phase I C 2005 CBRE/Oklahoma 239,743 42, % $8.00 $17.50 Marshalls I-240 & S Pennylvania Ave Mark Inman Pets Mart Lightning Creek D 1985 Lightning Creek Complex 48, % $9.00 $ S Western Ave Tammie Knight Mayridge Shopping Center D 1956 Shadid Properties 38,000 8, % $3.00 $4.00 Dollar General SW 44th St & N May Ave Buddy Shadid Palagio Shops on So. Western C 2005 Paul B. Odom Construction 43,003 4, % $16.50 $0.00 Pizza Hut SW 104th St & S Western Ave Paul Odom III Jump Zone Reding Shopping Center D 1972 JAH Realty, L.P. 69,344 7, % $12.00 $7.00 El Chico Grand Blvd & S Western Ave Ethan Slavin Little Caesars South 240 Plaza 1988 Brady Properties 25,000 1, % $10.00 $0.00 US Cellular 7800 S Western Ave Ali Ghiaiabadi South Meridian Plaza D 1983 John Gholami 36,000 6, % $10.00 $12.00 Waffle House 1100 S Meridian Ave John Gholami Judy Neal Quizno's South Park D 1975 South Park 86, % $0.00 $0.00 Dept. of Corrections 4500 S May Ave Mary Dolan Thomas Messiah Church Ministries South Penn Plaza D 1984 Commercial OKC 90,000 3,600 4% $10.00 $0.00 Family Dollar 1620 SW 89th St Marc Weinmeister State Farm Insurance South Shields Plaza C 72/85/92/05 CBRE/Oklahoma 224,527 92, % $3.00 $12.00 Langston's Western Wear SW 74th & S Shields Blvd Mark Inman, Brian Donahue Burlington Southeast Plaza C Grubb Ellis/Levy Beffort 185,266 34, % $4.00 $8.50 Buy For less SE 44th St & S High Ave Jim Rose Family Dollar Southern Hills C 1964/89/90 Phillips Edison & Co. 210,419 72, % $18.00 $8.00 Payless SW 74th St & S Pennsylvania Ave Pat Kelly Tan & Tone Southwestern Plaza C 1962/87 Southern Properties 117,846 3, % $9.00 $0.00 Cocina de Mino Restaurant SW 59th St & S Western Ave Steve Cupit, Amanda Family Dollar Stonebriar Shopping Center E 2005 Brady's Properties 30,000 2, % $11.00 $0.00 Rusty's Custard S Western Ave Ali Ghianiabadi Country Wide Insurance Summit Point D 2008 steve Hetherington 30,000 12, % $16.00 $0.00 Louie's SW 89th St & S Western Ave Hunter Miller Towne South Center C 5/4/2010 Jackson Development LLC 130,000 12, % $15.00 $15.00 Sam's Optical SW 74th St & S Walker Ave Fred Mazheri Primo's Walker Square C 1983 Precor Ruffin, LLC 100,430 7, % $14.00 $0.00 El Mariachi Super Marcado SW 59th St & S Walker Ave Rick Pritchett MetroTech Beauty School Walnut Square C 1985 Price Edwards & Co. 294,500 12, % $9.00 $12.00 Big Lots 2209 SW 74th St Laci Jackson, Susan Brinkley, Ev Ernst Conn's Westernview Center C 1958/78 Grubb Ellis/Levy Beffort 104,000 8, % $11.00 $12.00 Taste of China I-240 & S Western Ave Jim rose Westminster Village D 1986 Brady's Properties 79, % $9.00 $0.00 Westminster Executive Suite S Western Ave Ali Ghaniabadi South Totals 4,642,426 1,498, % S outh 9

12 Oklahoma City Retail Market Summary Edmond Submarket Edmond Survey Summary The Edmond market, like much of the metro area, has seen a shift in retailers between projects, but the overall vacancy rate remains relatively unchanged at 12.6 percent. Three centers, Edmond Market Place, Eagle Crest and Kelly Plaza contain 43 percent of the market vacancy; these each have some big box vacancy. The next three most vacant properties make up another 20 percent. Overall, Edmond demographics remain a draw though and continues to make this a desirable market for retailers. 2nd Street and Bryant remains ground zero for Edmond retail and the centers at this intersection are strong performers. A mile south, Spring Creek Plaza and Spring Creek Village are seeing their more upscale tenants do well during the downturn. Outlook It is anticipated that Edmond occupancy will continue to hold up fairly well. No new construction in the near term should allow the most vacant properties to begin addressing their holes. While we anticipate retailers negotiating hard on renewals, there are fewer options in Edmond given that most of the market is 93 percent plus occupied. So, while rents will trend downward, it will be less pronounced than other submarkets. No development is currently underway in the submarket; there is talk of reviving the 15th street and I-35 project. Edmond should be one of the first markets to attract new projects once we turn the corner with regard to the overall economy and financing. Now is the time for existing project owners to address upcoming renewals and solidify tenancy prior to the start of any new projects that will compete for their tenants. (thousands of square feet) 15% 12% 9% 6% 3% 0% Edmond Submarket Retail Vacancy Edmond Submarket Retail Absorption Alta Mesa

13 Oklahoma City Retail Market Summary Edmond Submarket Center Class Year Built Leasing Agent GLA Vacant Vac. & Rate 1 Rate 2 Anchor Tenant(s) 33rd & Boulevard D 1982 Lee Segal 49, % $7.00 $0.00 Mardel's E 33rd St & S Boulevard St Lee Segal Family Dollar Alta Mesa D 2008 JAH Realty, L.P. 31,061 7, % $20.00 $13.00 Qdoba 301 S Bryant Ave Ethan Slavin At the Beach Berkshire Plaza D 2002 Price Edwards & Co. 35,612 1, % $13.00 $15.00 Office Depot W 15th St & S Broadway Laci Jackson, Susan Brinkley, Ev Ernst Mr. Goodcents Boulevard Village D 1985 Irish Realty 36,604 7, % $0.00 $0.00 Radio Shack S Boulevard St Misty Doney Pizza Hut Broadway South D 1977 Levy Beffort 61,524 1, % $15.00 $0.00 Edmond Music 3320 S Broadway John Cohlmia Broadway Square C Land Run Commercial 98, % $13.00 $14.50 City Bites 3601 S Broadway Jeremy Foraker Morrison Group Bryant Square C 1973/92 Price Edwards & Co. 274,930 1, % $7.00 $12.00 Petco E 2nd St& N Bryant Ave Susan Brinkley, Laci Jackson, Ev Ernst Steinmart Danforth Plaza D 2003 CBRE/Oklahoma 30,000 7, % $13.00 $13.00 Cato W Danforth Rd & S Sante Fe Ave Mark Inman H&R Block Danforth Square C 1999 Gianos 108,000 3, % $12.00 $0.00 Athletic Village W Danforth Rd & S Kelly Ave Gianos Domino's Pizza Eagle Crest D 1983 CBRE/Oklahoma 51,000 32, % $5.00 $10.00 Blockbuster Video 3000 E Memorial Rd Stuart Graham Edmond Crossing C 1995 Commercial Assets 159,600 24, % $16.00 $16.00 Homeland 24 E 33rd St Brenda Cobb TJ Maxx Edmond Exchange B 2003 JAH Realty, L.P. 71,243 20, % $12.00 $16.00 On the Border 3233 S Broadway Ethan Slavin Coach's Edmond Market Place D 1981/82/90 Price Edwards & Co. 96,112 77, % $6.50 $14.00 Delta Café 3301 S Boulevard Susan Brinkley, Ev Ernst, Laci Jackson Traditions Edmond Plaza C 1964/89/05 Price Edwards & Co. 158,373 22, % $8.00 $14.00 Westlake Hardware E 15th St & Broadway Ext. Susan Brinkley, Laci Jackson, Ev Ernst Conn's Edmond Trails E CBRE/Oklahoma 25,215 7, % $0.00 $16.00 YMCA of Edmond 289 S Santa Fe Ave Stuart Graham Game X Change Homestead Plaza D 2003 JAH Realty, LP 39,000 9, % $15.00 $0.00 US Cellular W Danforth Rd & N Santa Fe Ave Charlene Wilson Buffalo Wild Wings Kelly Centre Shopping Center D 2003 CBRE/Oklahoma 43,769 7, % $10.00 $14.00 Nichols Hills Bank 610 S Kelly Ave Ryan Storer Kelly Plaza D 1984 Grace Commercial 85,639 32, % $4.50 $7.50 Colortyme W Edmond Rd & S Kelly Ave Larry Emmer Sherwin Williams Kickingbird Square C 83/88 Grubb Ellis/Levy Beffort 110, % $13.90 $0.00 Regal Cinema 1323 W Danforth Rd Jim Rose Interurban North Oaks D 1983/89 Price Edwards & Co. 70,672 15, % $12.00 $8.00 Westlake Hardware 821 W Danforth Rd Brandy Rundel Dollar General Oak Brook D 1982/91/92 Wiggin Properties 43,006 5, % $10.00 $0.00 Hunan 218 S Santa Fe Ave Don Faulkner Dollar General Oxford Pointe Shops E 1986 Price Edwards & Co. 26, % $9.00 $10.00 The Archives E 2nd St & S Bryant Ave Susan Brinkley The Vision Center Pebble Creek D 2001 Walter Morris & Associates 62, % $18.00 $0.00 Kohl's W Danforth Rd & N Santa Fe Ave Andy Boyd Dollar Tree Shoppes On Broadway C 2008 Price Edwards & Co 160,000 9, % $16.00 $22.00 Hobby Lobby E 33rd St & S Boulevard Susan Brinkley, Karleen Krywucki, Ev Ernst, Laci Jackson IO Metro Signal Ridge D 1986 Fotis Bargeliotes 35,000 1, % $8.00 $0.00 Conoco 1700 S Kelly Ave Fotis Bargeliotes Daylight Donuts Spring Creek Plaza D 2000 Zerby Interests 63,000 14, % $20.00 $14.00 Talbot's E 15th St & S Bryant Ave Shawn Driver Panera Bread Spring Creek Village of Edmond D 2005 Charles Ballenger 62,000 5, % $18.00 $26.00 Legacy Bank E 15th St & S Bryan Ave Charles Ballenger Ballengers University Village B 2000 Sooner Development 400,000 2, % $18.00 $22.00 Target Super Center E 2nd St & S Bryant Ave Brad Goodwin Lowe's University Village 2 B 2000/2004 Sooner Investment 76,500 1, % $20.00 $20.00 Wal-Mart Neighborhood Mkt. E 2nd St & S Bryant Ave Brad Goodwin Blockbuster Willow Creek E ,000 8, % $11.50 $10.00 Oasis Church E 2nd St & N Santa Fe Ave Lisa Brandes Vernon Millspaugh Edmond Submarket Totals 2,595, , % Edmond 11

14 Oklahoma City Retail Market Summary West-Central Submarket West- Central Survey Summary The I-40 & Garth Brooks Blvd intersection is a major retail draw as is Westgate Marketplace on MacArthur & I-40. Together, these areas contain over 2 million square feet of space. Aside from these newer developments, the submarket is primarily comprised of neighborhood centers, most of which are unanchored. The Asian district along Classen is a unique market within a market that tends to do well and stand on its own. The I-40 and Portland area remains the major retail furniture and design center for the community and the state. By our count, there are 33 stores, containing over 1.6 million square feet, operating in this area that specializes in furniture and accessories. This district is further fragmented as it includes the growing Mustang market on one hand and the established 23rd street market on the other. Vacancy was virtually unchanged from year-end at 8.1 percent. Windsor Hills leased their vacant theater to a boutique theater operator. This was offset by some big box vacancy. Apart from larger spaces, there was modest improvement in occupancy across the submarket. Outlook The small shop space just north of the new Target on Garth Brooks filled up quickly which speaks well of the demand for retail in Yukon, particularly south of I-40. The Horizon outlet development on the land in front of the old ATT building appears to be on track provided the developer can get his financing finalized. Oklahoma City has contributed sales tax rebates to this project which has helped get this project done (almost done anyway) in a difficult market. The unique nature of this project, with a number of tenants that will be new to our market, should lead it to be successful without cannibalizing existing projects. As the now mature Westgate Marketplace proved, the West Central submarket has historically been an underserved retail market and the markets strong occupancy in a down market suggests that it could support additional retail. (thousands of square feet) West-Central OKC Submarket Retail Vacancy 10% 8% 6% 4% 2% 0% West-Central OKC Submarket Retail Absorption Target Center

15 Oklahoma City Retail Market Summary West-Central Submarket Center / Address Class Year Built Leasing Agent / Co. GLA Vacant Vac. % Rate1 Rate 2 Anchor Tenant(s) 16th & Indiana D 2002 Charles Shadid 41, % $3.00 $5.00 Discount Dollar Store NW 16th St & N Indiana Ave Charles Shadid Bad Granny's 36th & May Center C 1986 B.D. Eddie Enterprises 97,500 1, % $8.00 $0.00 Pole Position Raceway SW 36th St & S May Ave Terry McGuire Ann Arbor Terrace E 1971 Grubb Ellis/Levy Beffort 30, % $8.00 $0.00 Family Dollar 4913 NW 23 St Jim Rose Arvest Plaza D 1986/00 J. S. Ferguson 32,600 2, % $9.00 $0.00 Arvest Bank S Cornwell Dr JS Ferguson Chisholm C 1979/82 CBRE/Oklahoma 232,510 71, % $3.00 $16.00 CiCi's I-40 & Garth Brooks Blvd Ryan Storer Big Lots DeVille C 1964/92/94 Grubb Ellis/Levy Beffort 125,377 21, % $3.00 $3.00 Buy For Less NW 23rd St & N Council Rd Jim Rose Heart & Hand Thrift Glen Oaks D 1968/98 JAH Realty, L.P. 49,161 13, % $15.00 $7.00 Westlake Hardware NW 23rd St & N Rockwell Ave Ethan Slavin Blockbuster Video MacArthur Court D CBRE/Oklahoma 35,228 8, % $10.00 $ N MacArthur Blvd Brian Donahue MacArthur Park D 1997 Charles Shadid 55, % $5.00 $6.50 Community Thrift Store 2300 N MacArthur Blvd Charles Shadid Queen of Sheba Restaurant Meridian Plaza D 1959 Grubb Ellis/Levy Beffort 90,590 19, % $5.00 $4.00 James Lighting NW 16th St & N Meridian Ave Jim Rose Dollar General Mustang Shopping Center D 2004 CBRE/Oklahoma 35,846 3, % $16.00 $0.00 CATO 216 N Mustang Mall Terr Stuart Graham DOLLAR TREE Mustang Trade Center C 1983 LandRun Commercial 106,850 36, % $9.00 $9.00 Dollar General Hwy 152 & S Mustang Rd. Jeremy Foracre Factory Connection Old Mill D NA National Properties 82,730 2, % $6.00 $0.00 Locke Supply 301 Elm Ave Ray Wright Penn Crossing D 1994 CBRE/Oklahoma 133,356 2, % $17.00 $6.00 Walmart Neighborhood Mkt. NW 23rd St & N Pennsylvania Ave Stuart Graham FedEx Office Portland Square D 1958/87 Charles Johnson, DDS 38,000 10, % $4.00 $0.00 Sam's Wholesale Liquor NW 23rd St & N Portland Ave Chuck Johnson Rock Glen Center E 1994 NAI Sullivan Group 25,308 2, % $3.64 $0.00 Coleman's Pawn 1500 N Rockwell Ave David Hartnack Labor Ready Shartel Plaza D 1965 Pro Realty 40,736 1, % $12.50 $0.00 CVS 5225 N Shartel Ave Greg Downs Silver City Center D 1974/94 NAI Sullivan Group 88,851 30, % $8.00 $0.00 Tractor Supply 101 N Mustang Rd David Hartnack Curves for Women Target Center C , % $20.00 $16.00 Target NA Ten-M D 1958/88/91 Joe LaBar 33, % $7.00 $0.00 Summit Business System NW 10th St & N Meridian Ave Joe LaBar Apple Tree Antique Mall Walnut Creek D 1974 Charles Shadid 52,822 12, % $3.00 $ N MacArthur Blvd Charles Shadid West End Pointe B 2001 CBRE/Oklahoma 507,500 10, % $16.00 $16.00 Lowe's I-40 & Garth Brooks Blvd Mark Inman Kohl's West Pointe Shoppes E 2006 Grubb & Ellis Levy Beffort 25,000 13,000 52% $16.00 $18.00 Biff's Around the Clock W Reno Ave & N Mustang Rd Michael Almaraz Human Performance Centers Westgate Marketplace A 2000 Zerby Interests 1,000,000 7, % $23.00 $0.00 Wal-Mart I-40 & S MacArthur Blvd Shawn Driver Home Depot West Oaks Village D 1964/74/82 Baker - First 91, % $4.00 $0.00 Family Dollar NW 10th St & N Rockwell Ave Anna Conrady Cabinet Outlet Will Rogers C 1982 Charles Shadid 160,000 38, % $4.00 $6.00 Oriental Imports 3000 N Portland Ave Charles Shadid McSalty's Pizza Windsor Hills C 1960/98 Phillips Edison Co. 235,561 14, % $6.50 $12.00 Crest Foods 4601 NW 23rd St Brenda Canada Big Lots Windsor Park E 1982 Grubb Ellis/Levy Beffort 26, % $12.00 $10.00 Ci Ci's Pizza 2500 N Meridian Ave Jim Rose Yukon Hills C 1978 JAH Realty, L.P. 127,200 7, % $6.00 $9.00 Cross Trainers Fitness S Cornwell Dr & E Vandament Ave Ethan Slavin Buy For Less Yukon Shopping Center D 2005 CBRE/Oklahoma 231,500 2, % $14.00 $0.00 Dollar Tree I-40 & Garth Brooks Blvd Mark Inman/Stuart Graham Cato West-Central Totals 4,104, , % West- Central 13

16 Oklahoma City Retail Market Summary Moore-Norman Submarket Moore-Norman Survey Summary The I-35 Moore-Norman corridor vacancy is one of the metro areas lowest coming in at 7.5 percent at mid-year, a slight improvement from the 8.1 percent at year-end. Hobby Lobby opened at the Shops at Moore and Target has announced plans to construct a store immediately to the west of Home Depot at Fritts Farm, further cementing the 149th street and I-35 intersection as a major center for retail in the market. Sooner Mall continues to be welloccupied and appears to be a survivor in the enclosed Mall wars. Centers in this market, with few exceptions, have been able to maintain solid occupancy. A number of smaller than 25,000 s.f. strip centers have been built over the past 18 months and most are struggling to get full. Outlook Shoppes at Moore added some small shop space at the north end of their development; otherwise, there is no current development in this submarket. University Town Center has added Academy and is working on pre-leasing some planned small-shop space. By all accounts, tenant sales at the project remain good, but the lifestyle portion of the project remains on hold. Existing properties should remain fairly stable. However, properties with national tenants in this market will see a downward trend in rents on both renewals and new leases. (thousands of square feet) Moore-Norman Submarket Retail Vacancy 10% 8% 6% 4% 2% 0% Moore-Norman Submarket Retail Absorption Campus Corner

17 Oklahoma City Retail Market Summary Moore-Norman Submarket Center Class Year Built Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenant(s) Alameda Square D 1984 Equity Commercial Realty, LLC 85,420 20, % $14.00 $10.00 Ace Hardware 12th Ave SE & E Alameda St Eric Fleske Dollar Tree Anatole D 1985 Equity Commercial Realty 64,555 2, % $12.00 $20.00 Harbor Freight Tools 12th Ave SE & E Alameda St Gayla Artman Sherwin Williams Broadway Plaza D Equity Realty 31,588 16, % $11.00 $0.00 Home Creation 2200 N Broadway St Eric Fleske Brookhaven Village C 1985 Price Edwards & Co. 154,272 13, % $0.00 $0.00 Chico's 36th Ave NW & W Robinson St Lee Chancellor Talbots Camden Plaza E 2006 Equity Commercial Realty, LLC 31, % $16.50 $ SW 19th St Eric Fleske Campus Corner Shops C 1911/93 Equity Commercial Realty, LLC 225,000 18,000 8% $12.50 $19.00 OU Authentic 301 W Boyd St Rainey Powell Louie's Rest.Lucca Carriage Plaza E 1983 Gus Gianos Family Partnership 25, % $0.00 $0.00 The Webb 2001 W Main St Peter Gianos Cayman's Center on Main (Downtown Center) C 1965 Retail Investors, Inc. 107, % $7.50 $0.00 Firestone 500 Main St Perry Trout Colonial Estates C Ren Equity Commercial Realty, LLC 104, % $10.00 $12.00 Value Foods 12th Ave SE & E Lindsey St Robert Finley East Moore Shopping Center D 2006 Grace Commercial 24,484 2, % $8.00 $8.00 Dollar General 406 S Eastern Ave Mary Grace, Larry Emmer Cleveland Co. Health Dept. Heisman Square D 1999 Price Edwards & Co. 93,000 7, % $14.00 $14.00 Homeland 12th Ave SE & E Alameda St Susan Brinkley, Laci Jackson, Ev Ernst At the Beach Hobby Lobby Bldg. D CBRE/Oklahoma 47, % $10.00 $10.00 Wine Store 555 W Main St Mark Inman University of Oklahoma Hollywood Center C 1964 Foreman Properties 127, % $0.00 $0.00 Homeland 1600 W Lindsey St Lynn Foreman Hancock Fabric Malibu Shopping Center E 2005 Gerald Gamble Co. 27,000 11, % $8.00 $0.00 Advance America Cash 824 NW 12th St Gerald Gamble Merkle Creek D 1985 Equity Commercial Realty, LLC 32,000 1, % $13.00 $0.00 Play It Again Sports 2203 W Main St Gayla Artman Tan & Tone America Moore Towne Center D 2005 Domain Commercial, LLC 35,000 4, % $15.00 $17.00 McAlester's I-35 & SW 19th St Micah Alcorn Mazzios Pizza, Ross New City Center C 1963/98 Precor Ruffin, LLC 181,894 51, % $6.00 $9.00 Family Dollar 605 N Moore Ave. Rick Pritchett Subway Normandy Creek C 1974 Dillard Group 107,366 9, % $10.00 $0.00 Hastings Books 2200 W Main St Steve Williams, Sandy Taylor Furr's Cafeteria Park On Main D 1982 Huettner Properties 68,045 2, % $8.00 $12.00 POM Executive Suites 36th Ave SW & W Main St Debby Busking Moto Photo Parkway Plaza B 1996 Zamias Services, Inc. 375,000 7, % $12.00 $15.00 Barnes & Noble Ed Noble Parkway Carolyn Kellogg Bed Bath & Beyond Riverwalk Centre E 2000 Grubb Ellis/Levy Beffort 159, % $16.00 $0.00 Kohl's I-35 & SW 19th St Ryan Storer Gordman's Riverwalk Plaza E 2000 Price Edwards & Co. 26, % $13.00 $14.00 Midwest Regional Hospital Riverwalk Dr Susan Brinkley Integris Physical Therapy Riverwalk Shops D 2006 EquityCommercial Realty, LLC 34,000 5, % $15.50 $16.50 Alfredo's Service Rd Robert Finley Robinson Crossing C 1986/89 Brady's Properties 118,000 1, % $12.00 $14.00 Dollar six movie 1300 N Interstate Dr Ali Ghaniabadi Papa Murphy's Pizza Moore Power Center C 2007 CBRE/Oklahoma 900,000 54, % $18.00 $24.00 Office Depot I-35 & SE 19th St Mark Inman Best Buy Silver Leaf D 1985 Sun Lee 88, % $0.00 $0.00 SilverLeaf Furniture SE 12th St & S Eastern Ave Sun Lee Family Dollar Sooner Mall B 1976/88/99 General Growth Properties 503,851 38, % $0.00 $0.00 Dillard's I-35 & W Main St Sears Sooner Shopping Center D 1966 Ultra-Thin 50,000 3,000 6% $5.00 $0.00 Moore Rexall Drugs NW 5th St & N Broadway St Joe Bryant Moore Tag Agency Sooner West Plaza D 1981 Equity Commercial Realty, LLC 64,500 1, % $15.00 $15.00 Wright's IGA 36th Ave SW & W Main St Gayla Artman Tuesday Morning Stubbeman Village E 1972 Equity Commercial Realty, LLC 33, % $17.00 $0.00 Mr. Bill's Elm Ave & Elmwood Dr Judy Hatfield Ratcliff's Bookstore The Main Center D 2005 HEW Marketing, Inc. 106, % $9.00 $9.00 Hobby Lobby N Flood Ave & W Main St Heather Warrington Rent A Center University North Park B Price Edwards & Company 539,705 70, % $17.00 $22.00 I-35 & W Robinson St Brandy Rundel West Port Shopping Center D N/A City Properties 40,898 3, % $0.00 $0.00 Moore Family Clinic 1200 N Santa Fe Ave Jennifer/Amy GFF Foods Moore-Norman Totals 4,611, , % Moore - Norman 15

18 Oklahoma City Retail Market Summary Eastern OK County Submarket Eastern OK Count y Survey Summary As noted in the summary, Heritage Park Mall has been removed from our survey. The Mall has been closed and it is not expected to reopen as a retail facility. We will continue to track the Sears building as a freestanding building. As a result, the market vacancy for the Eastern Oklahoma County submarket ended June at 15.6 percent. Heritage Plaza, Choctaw Plaza, Northeast Shopping Center and Uptown Plaza account for 55 percent of the total submarket vacancy. Uptown Plaza has undergone a renovation and has leases pending that will significantly improve their numbers. A number of the other centers in the market are older and finding a harder time attracting tenants. Most of the newer, welllocated properties in the market are well above 90 percent occupancy. Outlook By all reports, Town Center has become the center of this submarket s big box retail and it continues to draw strong traffic and generate good sales for retailers. No significant movement, either positive or negative, is expected in the rest of the market for the remainder of the year. This submarket is very much driven by small shop space and local retailers. These types of tenants have proven to be more stable with regard to rent. Consequently, we see rents staying relatively flat for the year. No new development is expected in the next six months to a year although you could argue that this market remains underserved given the Town Center results. (thousands of square feet) Eastern OK County Submarket Retail Vacancy 30% 25% 20% 15% 10% 5% 0% Eastern OK County Submarket Retail Absorption Town Center