City 2013 Mid-Year Office Market Summary TABLE OF CONTENTS

Office Market Summary 1

Central Business District Submarket 2–3

Northwest Submarket 4–6

North Submarket 7–9

Midtown Submarket 10

West Submarket 11

Suburban Submarket 12

Medical Office Submarket 13

Submarket Map

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. 2013 Mid-Year Office Market Summary

The Oklahoma City office market held steady during the anchor tenant for what is reported to be an at least OKC Total O ce Market Vacancy 35% the first half of 2013. Overall, the city’s vacancy rate 20-story tall tower. It is likely that the construction Market Vacancy CBD Vacancy Suburban Vacancy rose from 16.2% to 16.5%. The market’s vacancy of such a building will create offsetting vacancy the 30% stood at 16.4% a year ago. In general, all submarkets anchor tenant leaves behind as we do not believe, and 25% performed fairly well except for the North submarket it certainly has not been reported, that the tenant is 20% which had negative absorption of just over 90,000 new to the market. 15% square feet. That anomaly resulted in total negative absorption of nearly 47,000 square feet. The North The overall suburban vacancy rate ticked upward from 10% submarket experienced some general softening partly 11.8% to 12.4% which was primarily attributable to the 5% due to a reduction of Chesapeake’s leased space previously mentioned changes in the North submarket. 0% '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 outside its own campus and some more accurate The Northwest submarket, which is the city’s largest, reporting at the Class C Lincoln Plaza which is now remained level at 7.7% vacant. Class A buildings in OKC Total O ce Market Inventory in receivership after languishing for the past two to the Northwest showed continued tightening with 20 three years under previous ownership. vacancies falling from 4.8% to 3.7%. Larger Class Occupied SF Vacant SF A users currently have very few space alternatives The Central Business District’s vacancy rate decreased in this popular submarket and with Class A rental 15 from 24.6% to 24.3%. However, the CBD should take a rates climbing to $21.80 per square foot, some new hit in the second half of the year when Devon Energy’s construction is inevitable in the next few years. If not 10 lease of approximately 225,000 square feet at First for developers’ fears about the future of Chesapeake

National Center expires. The most impressive aspect Energy and the amount of space that would be added feet) (millions of square 5 of the downtown market is the dwindling supply of to inventory, new construction would have likely been

Class A space. Class A vacancy shrunk from 4.0% to added to the market by now. As it stands, most of 0 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 2.3% which is likely an all-time low. Consequently, the better quality space that Chesapeake has vacated Class A rental rates increased from $18.36 to $19.55 has been quickly absorbed by the pent-up demand of OKC OFFICE MARKET RENTAL RATES per square foot, which is an all-time high. The impact tenants in need of quality space. Approximately 80% $20.00 Northwest North Suburban of Devon’s vacation of it space at the Class C First of the approximately 100,000 square feet Chesapeake CBD Midtown West National Center will definitely impact the downtown vacated at the Class A IBC Center was leased within market, but not the bellwether Class A buildings. Class six months of it being placed on the market and at C vacancies will likely increase to an all-time high higher rental rates than Chesapeake was paying. We $15.00 of over 65% in the second half of the year. As we expect that similar results will be seen at the Class A have stated before, many of these buildings are faced Valliance Tower where Chesapeake recently vacated with functional obsolescence and it remains to be approximately 25,000 square feet. seen what becomes of them. Given the increase in $10.00 demand for downtown housing, we suspect a few The Memorial Road corridor of the Northwest 2009 2010 2011 2012 2013 may be converted to that or other alternative uses. submarket is particularly strong as Class A space in

If these older obsolete buildings were removed from that area is virtually non-existent. In fact, 8 of the 9 OKC TOTAL OFFICE MARKET ABSORPTION the market, the CBD’s vacancy is realistically closer Class buildings in that corridor report full occupancy. 200000 to a reasonably healthy rate of 13.5%. Parking woes 150000 continue to be an issue for the CBD, but help is on the In general, we expect the market to remain healthy 100000 way with the construction of an 830-space garage on for the next few years. There will be fits and starts 50000 the west side of downtown. Several other new garages as corporate relocations within the market create 0 and garage expansions are still in the planning stages, inventory and opportunities for other large users. So -50000 but further relief is anticipated. long as the local and national economies continue to -100000 improve and remain healthy and new construction is The biggest news for the CBD is the recent report that undertaken at a moderate rate, the local office market -150000 -200000 a new office tower is on tap for the land currently should remain in a reasonable balance. 2009 2010 2011 2012 2013 occupied by the Stage Center which is catty-corner to the Devon Tower. Speculation is rampant regarding

RSF Vacant SF Vacant % Rate 2013 Mid-Year OKC Office Market Totals 14,963,868 2,472,968 16.5% $16.48

1 2013 Mid-Year Oklahoma City Office Market Summary Central Business District Submarket

HISTORICAL CBD VACANCY 2013 Mid-year CENTRAL BUSINESS DISTRICT REVIEW 25% • Aggregate vacancy rates decreased from 24.6% to 24.3% 20%

15% • Class A vacancy decreased from 4.0% to 2.3%

10% • Class B vacancy increased from 22.7%to 23.4% 5%

0% • Class C vacancy remained flat at 51.7% 2009 2010 2011 2012 2013

• Aggregate rental rates increased from $15.49 per SF to $16.47 per SF

HISTORICAL CBD RENTAL RATES BY CLASS • Class A rates increased from $18.36 per SF to $19.55 per SF Class B $21.00 Class A Class C

$18.00 • Class B rates increased from $14.74 per SF to $16.20 per SF

$16.00 • Class C rates increased from $13.13 per SF to $13.19

$13.00 • The CBD experienced positive absorption of 15,000 SF during the first half of 2013 $11.00 CT

I $9.00 2009 2010 2011 2012 2013 2013 CENTRAL BUSINESS DISTRICT FORECAST STR

I • Vacancy rates will continue to increase as more Devon space hits the market in 2013. CBD OCCUPANCY BY CLASS

100% SS D

80% INE S 60% U

40% AL B

20% TR

EN 0% Class A Class B Class C C

HISTORICAL CBD ABSORPTION

120000 100000 80000 60000 40000 20000 0 -20000 -40000 -60000 -80000 -100000 2009 2010 2011' 2012' 2013

2 Downtown Oklahoma City 2013 Mid-Year Oklahoma City Office Market Summary Central Business District Submarket

CBD Year Built Floors RSF Vacant SF Vacant % Rate CAF 100 Park Ave Building 1923/64 12 99,752 23,991 24% $15.00 12% 100 Park Ave 101 Park Avenue Building 1936 14 197,042 61,253 31% $14.50 16.34% 101 Park Ave. 20 N. Broadway 1981 19 307,388 0 0% $16.00 20% 20 N Broadway Bank of Oklahoma Plaza 1972 16 233,808 25,109 11% $14.50 20% 201 Robert S. Kerr 1971 36 514,317 202,009 39% $17.00 15% 100 N. Broadway City Place 1931/85 33 251,449 70,715 28% $14.50 14% 204 N. Robinson Corporate Tower 1980 14 277,849 13,462 5% $17.00 17.6% 101 N. Robinson Court Plaza 1923/79 10 78,381 38,668 493% $12.00 14% 228 Robert S. Kerr 1926 20 205,000 205,000 100% $14.00 15% 134 Robert S. Kerr First National Center 1931 32 972,267 478,027 49% $13.00 18.9% 120 N. Robinson Hightower Building 1929 10 107,152 21,371 20% $15.00 15% 105 N. Hudson 1984 21 735,514 15,050 25% $20.00 20% 211 N. Robinson

Oklahoma Tower 1982 31 568,960 24,477 4% $20.00 20% Cen 210 Park Ave.

One North Hudson 1927 11 73,000 0 0% $12.00 12% tr 401 W. Sheridan Robinson Plaza 1992 10 195,702 35,833 18% $22.00 17.8% Bu al 55 N. Robinson Robinson Renaissance 1927/88 12 174,840 39,382 23% $13.50 25% 119 N. Robinson s ine Sonic Building 2003 4 100,654 0 0% $24.50 8%

300 Johnny Bench Drive Di ss The Reserve 1922/97 4 71,616 0 0% $16.00 20% 226 Dean A. McGee Avenue str Totals 5,164,691 1,254,347 24.3% $16.47 i ct

3 2013 Mid-Year Oklahoma City Office Market Summary NORTHWEST Submarket

HISTORICAL NORTHWEST VACANCY 2013 Mid-year Northwest submarkeT REVIEW 15% • Aggregate vacancy rates remained at 7.7% 12%

9% • Class A vacancy decreased from 4.8% to 3.7%

6% • Class B vacancy increased from 6.0% to 6.7% 3%

0% • Class C vacancy increased from 15.8% to 17.9% 2009 2010 2011 2012 2013

• Aggregate rental rates increased from $17.20 per SF to $17.31 per SF

HISTORICAL NORTHWEST RENTAL RATES BY CLASS

$25.00 Class A Class B Class C • Class A rental rates increased from $21.33 per SF to $21.80 per SF

• Class B rental rates remained level at $16.35 per SF $20.00

• Class C rental rates decreased from $13.52 per SF to $13.47 per SF

$15.00 • The Northwest Oklahoma City submarket had zero net absorption.

$10.00 2009 2010 2011 2012 2013 2013 northwest submarket FORECAST

NORTHWEST OCCUPANCY BY CLASS • Vacancy rates rise as owner-occupied buildings are made available for multi-tenant 100% occupancy. 80% hwe st • Quoted rates will increase as landlords enjoy a healthy market with no new 60% construction underway.

Nort 40%

20%

0% Class A Class B Class C

HISTORICAL NORTHWEST ABSORPTION

250000

200000

150000

100000

50000

0 2009 2010 2011 2012 2013

4 IBC Center 2013 Mid-Year Oklahoma City Office Market Summary NORTHWEST Submarket

Northwest Year Built Floors RSF Vacant SF Vacant % Rate CAF 2525 Expressway 1974 6 62,410 11,589 19% $13.00 15% 2525 Northwest Expressway 4100 Perimeter Center 1982 3 47,317 8,070 17% $13.00 15% 4100 Perimeter Center Dr. 4101 Perimeter Center 1982 3 47,317 1,256 3% $13.00 15% 4101 Perimeter Center Dr. 4141 Northwest Expressway 1982 3 46,464 0 0% $14.00 16% 4141 Northwest Expressway 4200 Perimeter Center 1982 2 61,327 4,160 7% $13.00 15% 4200 Perimeter Center Dr. 4700 Gaillardia 2007 2 42,970 0 0% $22.00 15% 4700 Gaillardia Parkway 4727 Gaillardia 2009 2 37,624 0 0% $23.00 18% 4727 Gaillardia Parkway 4747 Gaillardia 2009 2 26,016 0 0% $23.00 18% 4747 Gaillardia Parkway 4801 Gaillardia 2000 3 74,432 0 0% $24.00 18.4% 4801 Gaillardia Parkway 4811 Gaillardia 2008 3 41,450 0 0% $21.00 15% 4811 Gaillardia Parkway 5100 Brookline 1974 10 107,496 0 0% $16.00 15% 5100 Brookline 5909 NW 1982 7 101,146 9,061 9% $14.50 15% 5909 Northwest Expressway AAA Operations Center 2009 3 145,635 0 0% $20.00 0% 3100 Quail Springs Parkway American Cancer Society 2001 1 45,000 0 0% $17.50 0% N

8400 Silver Crossing orthwest Atrium Towers 1980 6 156,106 0 0% $16.00 15% 3501-3503 N.W. 63rd Avaya Building 1998 1 57,000 0 0% $20.00 0% 14400 Hertz Quail Springs Parkway Bradley Square 1984 1 30,000 0 0% $14.00 0% 2932 N.W. 122nd Brookline Offices 1972 1 40,009 10,810 27% $12.00 0% 6051 N. Brookline Caliber Park One & Two 2007 2 81,520 0 0% $21.00 17.2% 14201-14301 Caliber Drive Center 3000 1972 2 115,800 36,263 31% $12.00 12% 3000 United Founders Blvd. Building 1976 4 54,793 19,368 35% $15.50 15% 6303 N Portland Ave Chase Park 1981 2 30,281 2,317 8% $13.50 16.5% 4323 NW 63rd St Commerce Center South 1982 3 65,857 0 0% $14.00 11% 9520 N. May Coppertree Centre 1982 3 26,928 0 0% $13.00 10% 3727 N.W. 63rd Cross Rock Place 1992 2 60,049 0 0% $22.00 12% 3595 W Memorial Rd Cross Rock Plaza I 1984 3 61,289 0 0% $22.00 15% 13801 Wireless Way Dobson Communications 2001 3 144,420 0 0% $22.50 16% 14101-14201 Wireless Way Enterprise Plaza 1981 3 92,180 0 0% $16.00 15% 5600 N. May FBI Building 1999 1 110,000 0 0% $24.00 0% 3301 W. Memorial Fifty-Six Expressway Place 1982 3 58,340 14,277 25% $12.50 0% 5601 N.W. 72nd Five Corporate Plaza 1980 3 49,486 0 0% $16.00 15% 3625 N.W. 56th Grand Centre 1979 5 101,217 6,953 7% $17.00 15% 5400 N.W. Grand Blvd. Hartford Insurance 1999 1 100,000 0 0% $18.00 0% 7800 N.W. 85th Terrace

5 2013 Mid-Year Oklahoma City Office Market Summary NORTHWEST Submarket

IBC Center 1983 10 278,843 8,367 3% $22.00 15% 3817 Northwest Expressway Jamestown Office Park 1972/79 2 74,000 11,930 16% $13.00 10% 3037 N.W 63rd Lake Park Tower 1983 6 103,084 10,121 10% $15.00 15% 6525 N. Meridian Lakepointe Towers 1981 6 177,746 61,407 35% $15.00 15% 4005-4013 Northwest Expressway Lakepointe West 1982 6 85,246 7,559 9% $14.50 15% 4045 N.W. 64th Lakeshore Tower 1982 3 33,900 3,889 11% $13.00 15% 4301 N.W. 63rd Landmark Towers 1969/72 10 306,960 23,375 8% $15.00 12% 3535-3545-3555 NW 58th Mercury Insurance Building 1986 2 100,103 0 0% $12.50 12.5% 7301 Northwest Expressway Mutual Assurance Building 1999 2 40,000 3,147 8% $18.00 12% 3121 Quail Springs Parkway North Shore Office Plaza 2001 5 56,418 0 0% $23.00 16% 10900 Hefner Drive Northwest Office Center 1973 2 85,833 22,838 27% $13.50 15% 4334 Northwest Expressway Oil Center 1973/1994 12 249,657 30,235 12% $16.00 13% 2601 Northwest Expressway One Corporate Plaza 1979 1 63,011 8,124 13% $15.50 15% 3525 NW. 56th Parkway Commons 2003 2 40,729 0 0% $20.00 15% 13900 N. Portland Portland Plaza 1969 3 35,425 9,037 26% $12.00 14% 5700 N. Portland Quail Commerce Center 1998 1 128,500 0 0% $18.50 0% 3201 Quail Springs Parkway

hwe st Quail Creek North 1973 2 36,124 6,198 17% $12.50 15% 11032 Quail Creek Rd. Quail Ridge Tower 1975 4 46,950 20,395 43% $13.00 16.5%

Nort 11212 N. May Quail Springs Parkway Plaza I & II 1986 6 298,610 24,406 8% $22.00 14% 14000 Quail Springs Parkway Rees Plaza at East Wharf 2002 3 40,998 0 0% $25.00 16.8% 9211 Lake Hefner Parkway Sprint PCS Building 1999 1 89,132 0 0% $15.00 0% 8525 Silver Crossing St. Martins Building 1990 2 59,712 2,671 4% $16.50 13% 9020 N. May The Summit Building 1975 5 50,000 0 0% $12.00 13% 5929 N. May Three Corporate Plaza 1980 3 49,920 6,677 13% $15.50 15% 3613 NW. 56th Two Corporate Plaza 1982 3 85,551 0 0% $15.00 14% 5555 NW. Grand Blvd. 1982 18 248,802 17,817 7% $19.50 14% 3030 Northwest Expressway Williams Sonoma 1998 1 35,862 0 0% $17.50 0% 7720 NW 84th St Totals 5,222,995 402,317 7.7% $17.31

6 2013 Mid-Year Oklahoma City Office Market Summary NORTH Submarket

IBC Center 1983 10 278,843 8,367 3% $22.00 15% HISTORICAL NORTH VACANCY 2013 Mid-Year North submarket REVIEW 3817 Northwest Expressway 20% Jamestown Office Park 1972/79 2 74,000 11,930 16% $13.00 10% 3037 N.W 63rd • Aggregate vacancy rates increased from 15.6% to 18.5% Lake Park Tower 1983 6 103,084 10,121 10% $15.00 15% 15% 6525 N. Meridian • Class A vacancy increased from 2.9% to 7.4% Lakepointe Towers 1981 6 177,746 61,407 35% $15.00 15% 10% 4005-4013 Northwest Expressway • Class B vacancy increased from 12.0% to 12.1% Lakepointe West 1982 6 85,246 7,559 9% $14.50 15% 5% 4045 N.W. 64th Lakeshore Tower 1982 3 33,900 3,889 11% $13.00 15% 0% • Class C vacancy increased from 49.5% from 61.3% 4301 N.W. 63rd 2009 2010: 2011 2012 2013 Landmark Towers 1969/72 10 306,960 23,375 8% $15.00 12% 3535-3545-3555 NW 58th • Aggregate rental rates increased from $16.95 per SF to $17.10 per SF Mercury Insurance Building 1986 2 100,103 0 0% $12.50 12.5% HISTORICAL NORTH RENTAL RATES BY CLASS 7301 Northwest Expressway Class A Class B • Class A rental rates remained flat at $21.75 per SF Mutual Assurance Building 1999 2 40,000 3,147 8% $18.00 12% $25.00 Class C 3121 Quail Springs Parkway North Shore Office Plaza 2001 5 56,418 0 0% $23.00 16% • Class B rental rates increased from $16.35 per SF to $16.40 per SF 10900 Hefner Drive $20.00 Northwest Office Center 1973 2 85,833 22,838 27% $13.50 15% • Class C rental rates increased from $12.49 per SF to $12.76 per SF 4334 Northwest Expressway Oil Center 1973/1994 12 249,657 30,235 12% $16.00 13% $15.00 2601 Northwest Expressway • The Oklahoma City North submarket experienced negative absorption of 91,000 SF One Corporate Plaza 1979 1 63,011 8,124 13% $15.50 15% during the first half of 2013. $10.00 3525 NW. 56th 2009 2010 2011 2012 2013 Parkway Commons 2003 2 40,729 0 0% $20.00 15% 13900 N. Portland 2013 north submarket fORECAST Portland Plaza 1969 3 35,425 9,037 26% $12.00 14% NORTH OCCUPANCY BY CLASS 5700 N. Portland • Vacancy rates could begin to shrink as space placed in the market by Chesapeake 100% Quail Commerce Center 1998 1 128,500 0 0% $18.50 0% Energy is absorbed. Nort 3201 Quail Springs Parkway 80% Quail Creek North 1973 2 36,124 6,198 17% $12.50 15%

• Rental rates will remain near current levels h 11032 Quail Creek Rd. 60% Quail Ridge Tower 1975 4 46,950 20,395 43% $13.00 16.5% 11212 N. May 40% Quail Springs Parkway Plaza I & II 1986 6 298,610 24,406 8% $22.00 14% 14000 Quail Springs Parkway 20% Rees Plaza at East Wharf 2002 3 40,998 0 0% $25.00 16.8% 0% 9211 Lake Hefner Parkway Class A Class B Class C Sprint PCS Building 1999 1 89,132 0 0% $15.00 0% 8525 Silver Crossing

St. Martins Building 1990 2 59,712 2,671 4% $16.50 13% HISTORICAL NORTH ABSORPTION 9020 N. May The Summit Building 1975 5 50,000 0 0% $12.00 13% 20000 5929 N. May 0

Three Corporate Plaza 1980 3 49,920 6,677 13% $15.50 15% -20000 3613 NW. 56th Two Corporate Plaza 1982 3 85,551 0 0% $15.00 14% -40000 5555 NW. Grand Blvd. -60000

Union Plaza 1982 18 248,802 17,817 7% $19.50 14% -80000 3030 Northwest Expressway -100000 Williams Sonoma 1998 1 35,862 0 0% $17.50 0% -120000 7720 NW 84th St 2009 2010 2011 2012 2013 Totals 5,222,995 402,317 7.7% $17.31

The Waterford 7 2013 Mid-Year Oklahoma City Office Market Summary NORTH Submarket

North Year Built Floors RSF Vacant SF Vacant % Rate CAF 1001 Wilshire 2003 4 43,316 0 0% $20.00 13% 1001 W Wilshire Ave 1973 16 178,315 27,198 15% $16.50 12% 5100 N. 5100 Circle Building 1981 6 74,799 0 0% $14.00 14% 5100 N. Classen Blvd. 7 & 9 Broadway Executive Park 1979 1 30,505 0 0% $16.00 0% 200 NW 66th Broadway North 1974 2 25,703 5,384 21% $15.00 13% 7301 N. Broadway Broadway Plaza 2003 3 50,726 0 0% $12.00 13% 16 NW 63rd Broadway Sixty-Eight 1979 3 40,000 4,934 12% $14.50 14% 6801 N. Broadway Central Park One 1982 6 113,134 0 0% $16.50 14% 525 Central Park Dr. Central Park Two 1984 6 124,463 0 0% $16.50 14% 515 Central Park Dr. Chase Bank Building 1981 4 39,367 2,500 6% $15.00 9% 1200 NW 63rd St Columbus Square 1982 3 36,559 0 0% $16.00 15% 1001 NW 63rd Five North Broadway 1972 3 44,805 0 0% $16.00 15% 6601 N. Broadway Harvey Parkway 1982 6 97,912 82,000 84% $17.00 17% 301 NW 63rd Lincoln Plaza Office Park 1968 2 243,423 222,664 91% $12.00 12% 4545 Lincoln Blvd. Market Center I 2008 2 46,368 0 0% $22.75 0% 701 Market Dr h Market Center II 2009 2 50,000 0 0% $22.75 12% 713 Market Dr Nichols Hills Executive Center 1979 2 52,426 5,879 11% $16.50 0% Nort 1000 W. Wilshire Nichols Hills Tower 1975 4 30,759 19,274 63% $15.00 11% 6410 Avondale Dr One Benham Place 1984 8 152,959 2,360 2% $18.50 15% 9400 N. Broadway One Broadway Center 1980 3 34,984 0 0% $14.00 9% 100 NW 63rd One Broadway Executive Park 1979 3 58,832 1,077 2% $15.50 12% 201 NW 63rd One Western Plaza 1989 2 50,948 10,000 20% $16.00 16.5% 5500 N. Western Paragon Building 1981 5 110,791 4,189 4% $16.00 15% 5801 N. Broadway Pavilion Building 1974 3 39,895 4,000 10% $12.50 12% 6701 N. Broadway Penn Park 1974 3 78,643 26,910 34% $13.50 13% 5001-5005-5009-5015 N. Penn Registry 1980 2 93,167 6,868 7% $14.00 15% 2200 NW 50th Richmond Square 1982 2 27,606 7,983 29% $15.50 12% 4900 Richmond Square Santa Fe North 1981 4 44,000 0 0% $14.50 14% 6 NE. 63rd The Commons on Broadway 2009 3 50,188 0 0% $21.75 18% 11600 Broadway Extension Three Broadway Executive Park 1977 3 45,256 16,868 37% $15.50 10% 6501 N. Broadway Two Broadway Executive Park 1980 3 52,205 13,247 25% $15.50 11% 205 NW 63rd Valliance Tower 1983 22 299,137 35,833 12% $22.00 17.8% 1601 Northwest Expressway Waterford A 1983 4 150,048 6,371 4% $21.50 16% 6301 Waterford Blvd.

8 2013 Mid-Year Oklahoma City Office Market Summary NORTH Submarket

Waterford B 1983 2 35,468 4,538 12.79% $21.50 16% 6303 Waterford Blvd. Waterford C 1983 4 81,575 1,646 2.02% $21.50 16% 6305 Waterford Blvd. Waterford D 1983 2 34,087 0 0% $21.50 16% 6307 Waterford Blvd. Totals 2,762,369 511,723 18.5% $17.10 Nort

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9 2013 Mid-Year Oklahoma City Office Market Summary MIDTOWN Submarket

HISTORICAL MIDTOWN VACANCY 2013 mid-year midtown submarkeT REVIEW 15% • Aggregate vacancy rates increased from 12.6% to 14% 12%

9% • Class B vacancy rates increased from 13.3% to 14.7%

6% • Class C vacancy rates increased from 5.0% to 6.3% 3%

0% • Aggregate rental rates stayed at $13.76 per SF 2009 2010 2011 2012 2013

• Class B rental rates were flat at $13.96 per SF

HISTORICAL MIDTOWN RENTAL RATES • Class C rental rates remained flat at $11.71 per SF $15.00 Class B Class C

• The Midtown Submarket experienced negative absorption of 19,000 SF during the first half of the year.

$12.00 2013 midtown submarket FORECAST

• Vacancy rates will likely increase.

$9.00 2009 2010 2011 2012 2013 • Rental rates will remain at or near current levels.

MIDTOWN OCCUPANCY HISTORICAL MIDTOWN ABSORPTION

100% 200000

150000 80% dto wn

100000 Mi 60%

50000 40% 0

20% -50000

0% -100000 Class B Class C 2009 2010 2011 2012 2013

2013 Mid-Year Oklahoma City Office Market Summary MIDTOWN Submarket

Midtown Year Built Floors RSF Vacant SF Vacant % Rate CAF 2000 Classen Center 1965 6 318,605 0 0% $14.00 10% 2000 N Classen Blvd 4801 Classen Building 1974 2 33,151 7,226 22% $11.00 0% 4801 N Classen Blvd Cameron Building 1955/57 5 81,493 0 0% $12.00 10% 2901 Classen Blvd Classen Park I 1982 3 52,800 3,625 7% $12.00 13% 3800 N Classen Blvd Classen Park II 1980 2 52,800 0 0% $12.00 13% 3700 N Classen Blvd Santa Fe Building 1954/82 4 55,203 2,000 4% $10.50 10% 3814 N. Santa Fe Ave. Shepherd Mall Office Complex 1964/95 2 709,000 169,495 24% $14.50 0% 2401 NW 23rd Street Totals 1,303,052 182,346 14% $13.76

10 The Cameron Building 2013 Mid-Year Oklahoma City Office Market Summary WEST Submarket

2013 mid-year West submarkeT REVIEW HISTORICAL WEST VACANCY 40%

• Aggregate vacancy rates decreased from to 34.1% to 24.3% 35%

30% • Class B vacancy totals decreased from 29.8% to 17.6% 25% 20% • Class C vacancy totals decreased from 40.3% to 34.1% 15% 10%

5% • Aggregate rental rates increased from $11.85 per SF tp $12.22 per SF 0% 2009 2010 2011 2012 2013 • Class B rental rates increased from $11.73 per SF to $12.35 per SF

HISTORICAL WEST RENTAL RATES BY CLASS • Class C rental rates remained flat at $12.02 per SF $15.00 Class B Class C

• The West Oklahoma City Office Market experienced positive absorption of 49,000 SF during the first half of 2012.

$12.00 2013 West submarket FORECAST

• Vacancy rates should improve slightly

$9.00 2009 2010 2011 2012 2013 • Rental rates in the submarket should remain flat

WEST OCCUPANCY BY CLASS

HISTORICAL WEST ABSORPTION 100% W e 60000 80% 40000 st

20000 60%

0 40% -20000

-40000 20% -60000

0% -80000 Class B Class C

-100000 2009 2010 2011 2012 2013

2013 Mid-Year Oklahoma City Office Market Summary WEST Submarket

West Year Built Floors RSF Vacant SF Vacant % Rate CAF 300 Meridian Place 1982 2 78,650 37,205 47% $12.00 11% 300 N Meridian Ave Bank 2 Tower 1975 7 65,520 0 0% $13.00 12% 909 S. Meridian Metro Office Park 1981 3 60,750 32,631 54% $11.00 0% 4300 Highline Blvd. Sovereign Office Park 1983 1 42,260 33,808 80% $10.00 0% 1220 Sovereign Row The Parkway 1982 6 96,960 13,683 14% $14.00 15% 1300 S. Meridian West Park Office Center 1986 1 58,786 0 0% $12.75 0% 715 Metropolitan Will Rogers Office Park 1 1984 1 52,779 4,908 9% $11.50 16% 4400 Will Rogers Parkway Will Rogers Office Park 2 1985 1 46,748 0 0% $11.50 10% 4350 Will Rogers Parkway Totals 502,453 122,235 24.3% $12.22 11 2013 Mid-Year Oklahoma City Office Market Summary SUBURBAN Submarket

HISTORICAL SUBURBAN RENTAL RATES BY CLASS 2013 mid-year Suburban submarkeT REVIEW $25.00 Class A Class B Class C • Aggregate vacancy rates increased from 11.8% to 12.4%

$20.00 • Class A vacancy increased from 4.2% to 4.9%

$15.00 • Class B vacancy remained flat at 10.2%

• Class C vacancy increased from 27.4% to 30.6% $10.00 2009 2010 2011 2012 2013

• Aggregate rental rates increased from $16.40 per SF to $16.51 per SF

• Class A rental rates increased from $21.46 per SF to $21.78 per SF HISTORICAL SUBURBAN ABSORPTION

150000 • Class B rental rates increased from $15.67 per SF to $15.71 per SF

100000

50000 • Class C rental rates increased from $12.92 per SF to $12.97 per SF

0

-50000 • Suburban Oklahoma City experienced negative absorption of 61,000 SF during the

-100000 first half of 2013.

-150000

-200000 2013 SUburban submarket FORECAST 2009 2010 2011 2012 2013

an • Suburban rental rates should continue to trend upward

u rb • Suburban vacancy rates should rise during the second half of the year as multi- b

u tenant buildings are added. s

• New speculative construction is probably still a year or so away.

Suburban Submarket Totals 9,799,177 1,218,621 12.4% $16.48

Quail Springs Parkway Plaza 12 2013 Mid-Year Oklahoma City Office Market Summary MEDICAL OFFICE Submarket

Medical Year Built Floors RSF Vacant SF Vacant % Rate CAF Deaconess Medical North 1996 3 55,209 9,643 17% $19.00 0% 5701 N Portland Ave Deaconess Medical South 1991 6 119,726 1,644 1% $19.00 0% 5401 N Portland Ave McAuley Physician Offices 1986 4 42,246 1,099 3% $17.00 0% 4205 McAuley Blvd NeuroScience Institute 1998 3 54,558 1,638 3% $19.00 0% 4120 W Memorial Rd Northwest Medical Center 1981 6 82,664 0 0% $16.00 13.4% 3330 NW 56th St Parkway Commons Medical Center 2008 2 27,000 0 0% $20.00 15% 14100 Parkway Commons Dr Parkway Medical Center 1980 2 44,983 0 0% $19.00 10% 3500 NW 56th St Pasteur Medical Building 1959 5 83,858 14,833 18% $16.50 15% 1111 N. Lee Ave. Physicians & Surgeons Bldg 1962 11 75,000 3,700 5% $15.00 0% 1211 N Shartel Ave Physicians Bldg - A 1970 9 68,349 825 1% $16.00 14% 3435 NW 56th St Physicians Bldg - B 1986 9 128,030 4,368 3% $19.50 14% 3433 NW 56th St Physicians Bldg - C 1975 8 75,158 1,137 2% $16.00 14% 3400 NW Expressway Physicians Bldg - D 1994 8 120,813 1,280 1% $18.00 14% 3366 NW Expressway Plaza Physician Offices 1992 7 70,050 2,999 4% $18.00 0% 4140 W Memorial Rd Presbyterian Professional Bldg 1995 4 91,122 0 0% $14.00 15% m

711 Stanton L Young e d Quail Brook Medical 2008 3 34,222 8,425 25% $20.00 15% i

13901 McAuley Blvd c Saints Medical Plaza 2008 5 82,010 4,160 5% $15.66 16.9% al NW 9th St & N Walker Ave SMC Medical Office Bldg 1967 3 29,054 3,170 11% $13.50 0% 4200 S Douglas Ave SMC Medical Plaza 1994 5 58,648 688 1% $16.50 0% 4221 S Western Ave St. Anthony ASC 1998 2 36,551 3,400 9% $19.80 14% 6205 N Santa Fe Ave St. Anthony Healthplex East 2012 3 45,000 14,058 31% $26.00 12% 3400 S. Douglas Blvd. St. Anthony Healthplex South 2011 3 45,000 10,545 23% $26.00 12% 13500 S. Tulsa Ave St. Anthony North POB 1990 2 28,281 3,689 13% $17.50 19.4% 6201 N Santa Fe Ave St. Anthony Prof. Bldg 1987 6 83,898 7,689 9% $18.21 11% 608 NW 9th St Tower Physician Offices 1986 11 93,639 3,622 4% $16.00 0% 4200 W Memorial Rd Total 1,675,069 102,612 6.1% $17.74

St. Anthony’s Healthplex 13 Price Edwards & Company Technology Market Data As a forward thinking company, Price Edwards & Company strives Price Edwards & Company has been the top source for Oklahoma to stay on the cutting edge of business technology. We maintain a City commercial real estate data for over twenty years. Our popular five-member, full-time Information Technology staff, which allows semi-annual market summaries have now been taken interactive. us to custom develop and provide products and services to help our Price Edwards launched okcmarketdata.com in 2008. This web app clients achieve their real estate goals. version of our market summaries allows the user to “slice and dice” the Oklahoma City commercial real estate market by asset type, priceedwards.com lease rates, submarket, and sales date. Properties represented Hundreds of tenant prospect, buyer, and seller leads originate from by Price Edwards have extended information including available our primary Internet presence: priceedwards.com. Through the suites, floor plans, and photos. website, we maintain a comprehensive listing of all the properties we represent. Our website also houses staff bios, press releases, market Email Marketing studies, and functions as a gateway to our various other online tools. Our email marketing program is second to none. We maintain a Search engine optimization is a priority for priceedwards.com and list of thousands of investor and real estate professional contacts, ensures that our listings rank among the top of Internet searches. and use that information to market an asset to a target audience, Price Edwards deployed a mobile version of priceedwards.com that assuring maximum exposure. Our strategy encourages a potential uses the GPS in smartphones to help located nearby properties and client to follow up via priceedwards.com and allows us to track the quickly put clients in contact with brokers. response of a particular message.

Work Order System Mobile Apps We have created our own work order system to service our tenants. Price Edwards & Company developed its own native iPhone and iPad Building engineers are instantly notified on their phones via text applications, now available in the Apple App Store. The products allow message. The real power of our system is found in its ability to users, free of charge, to review property data on office buildings, report on the status of a work order. Price Edwards can report on shopping centers, industrial projects, and apartment communities all open work orders by property, by engineer, or by status. Using across the Oklahoma City metro area. Information includes: lease our system allows us to identify trends or problems early. This rates, occupancy, sales history, performance relative to the market information can be included in monthly reports delivered via email and other useful tools for property owners and investors. The iPad on a schedule providing a higher level of transparency. app also features content from Price Edwards’ commercial real estate market summaries. Development is underway to port the Client Reporting apps to run on Google’s Android platform. Price Edwards is the The Price Edwards & Company Extranet uses Microsoft SharePoint to only firm to provide apps specific to the Oklahoma City commercial deliver unparalleled client reporting. Through our secure website, real estate market. clients can instantly receive all monthly reports. In addition, clients have access to all historical reports, copies of lease files, and contract information with profiles of all the Price Edwards staff assigned to their asset.

Price Edwards & Company | 210 Park Avenue, Suite 1000, Oklahoma City, OK 73102 | Phone (405) 843–7474 | Fax (405) 236–1849 www.priceedwards.com