Oklahoma City

Year-End 2007 Retail Market Summary TABLE OF CONTENTS

Retail Market Summary 1-2

Retail Submarket Map 3

North Submarket 4-5

Northwest Submarket 6-7

South Submarket 8-9

Edmond Submarket 10-11

West-Central Submarket 12-13

Moore / Norman Submarket 14-15

Eastern OK County Submarket 16-17

Year-End 2007 Sales Summary 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. Oklahoma City Year-End 2007 Retail Market Summary

elcome to the Year-End 2007 Retail Market Summary prepared by This survey evaluates the OKC Total Retail Market Vacancy Price Edwards & Company. occupancy of 215 retail centers W 15% Year-End 2007 (in excess of 25,000 s.f.) containing approximately 12%

26 million square feet. In 9% addition, we will be looking at the overall market including 6% freestanding properties which 3% are not part of a shopping 0% center. We have surveyed '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 231 free standing buildings containing in excess of 12 million square feet. With these two types of properties combined, we have about 3.3 million square feet of space available for retail use (excluding strip centers with less than 25,000 s.f.). During the past six months since our last retail market survey, our overall shopping center occupancy has declined slightly. Our vacancy rate is 11.16% which is slightly more than the last survey (10.95%). We have reduced our survey totals by a net 440,000 square feet. The cause of this reduction in square footage are a couple of centers that are being renovated and have been taken off our list of operating centers until the renovations have been completed, plus a center that has been taken out There are some clouds on the horizon that could affect our hot retail sector. of retail use. These reductions have been offset by three centers that have been completed and added to the survey. Vacant space in shopping centers Reports of numerous cutbacks in new stores by national and regional totals 2.9 million s.f. which is approximately 88,000 s.f. higher than it was retailers are being heard from every direction. Even though Oklahoma City’s at the time of the last survey. In addition, there is another 379,000 s.f. of economy is quite strong, we believe that there could be some fallout from free standing space that is available for occupancy. We continue to express retailer problems in other parts of the country. caution about the large number of strip centers (under 25,000 s.f. in size) which have small spaces vacant. We would estimate that there are easily At the same time, financing issues related to “subprime” home loans in 2.5 million square feet of these properties in the market which are not being other parts of the country could affect the loans that buyers and developers surveyed. Many of these have some vacancy, and they must be considered are able to arrange. This situation may dampen our sales closings and new when evaluating our retail market. We do still consider our overall retail project development. market to be healthy.

In addition, we are concerned about the consumer debt situation. Many OKC Total Retail Market Absorption New construction continues. questions have been raised about whether the consumer will be able to 1.5 Year-End 2007 We have identified 14 sizable continue to buy as he has for (over 25,000 s.f.) centers with the past few years. While 1.0 over 3 million feet under OKC Total Retail Market Inventory 50 Year-End 2007 we don’t know how our 0.5 construction. In addition, market will be affected by there are several other large GLA SF Freestanding SF 40 the tightening of consumer 0.0 developments on the drawing credit, our local tenants’ sales board. It remains to be seen if 30 feet) (millions of square -0.5 could drop. these planned centers come 20 -1.0 '99 '00 '01 '02 '03 '04 '05 '06 '07 to fruition. While most of the

(millions of square feet) (millions of square While all of these issues could larger centers are significantly 10 affect our retail real estate preleased, they all have some

0 market, we are fortunate shop space, and we cannot help but wonder if there is an adequate number '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 that we do not have a large of small tenants that can pay the higher occupancy costs demanded by number of speculative centers newly constructed centers to fill these spaces. under construction. Also, our economy is quite healthy, and we believe that our retailers are doing reasonably well. There is, however, a need to be The new construction has stemmed in part from a number of new tenants and cautious until the national economy stabilizes. prototypes entering the market. Not only are several mall anchors moving

1 to open-air stores, we are also attracting some tenants that heretofore have not been part of our market. The sizable new centers have a power center component, and most will have a lifestyle component as well. In addition, these new developments generally have significant excess land for future phases which offer the opportunity for the successful centers to become major shopping locations in the future. It is our feeling that some of the centers planned to be developed could be deferred or scrapped altogether as anchor tenants’ plans change due to the national economic picture.

We continue to see multiple tiers of lease rates. In the new centers that are dominated by national credit tenants, rental rates between $18 and $35 per s.f. are the norm. In the centers that are primarily considered neighborhood and older community centers, where most of the local tenants are located, rental rates are significantly lower—generally between and $7 and $15 per s.f. Likewise, the national tenants are receiving higher tenant finish allowances than the local tenants with some of the new centers providing $25 to $50 per s.f. allowances compared to the local tenants’ allowances of $5 to $10 per s.f. above white box finish levels. However, in some of the Downtown continues to be a major focus of our city’s leaders. The goal is to older centers, many tenant prospects desire different space configurations develop more housing and hotels in order to create demand for significant than have been utilized in the past, and as a result, large retrofit costs are retail development to go with the entertainment venues that are in place at becoming more and more prevalent. this time. Seven hotels with over 1,200 new rooms have been completed or will be completed within the next year. Several significant housing projects During 2007, demand for retail properties by local and national acquisition are underway. They include rental units and condominiums for purchase groups remained quite high. We have monitored 13 centers ranging from with price ranges between $150,000 and $750,000. More than 1,000 approximately 35,000 s.f. to over 260,000 s.f. being sold. The 2007 sales residential units should be completed within the next couple of years. At total over $230 million and averaged $98.17 per s.f. the present time, we are showing one free-standing retail building, Bass Pro, and one multi-use center in our survey. The multi-use center includes The North Oklahoma City market, the West Central Oklahoma City market, the Harkins Theater, two strip centers in front of it, and a mixed use building the Moore/Norman market all have occupancy rates in excess of 90% along the canal just west and north of these facilities. There are numerous and continue to be doing quite well overall. The East Oklahoma County restaurants and clubs located throughout Bricktown, but all are located in submarket and the South submarket each have a vacancy in excess of 15%. buildings that cannot be classified as retail facilities. The City has publicly advertised the need for a downtown grocer of some type and significant efforts are being made to attract a specialty grocery store. There is also planning underway for a potential retail development area in the Core to Shore plans which addresses a potential expansion of downtown to the south as I-40 is moved towards the Oklahoma River. These developments lie five to ten years in the future, and as a result, there is no effect on the present retail market.

The survey has been divided into seven submarkets and five classes within each submarket. Even though these submarkets are generally healthy, there are pockets of vacancy caused by loss of an anchor than can skew the actual results in a small area of a submarket. Detailed study of all the markets is suggested before a firm decision about investing in a specific submarket is made.

Price Edwards & Company is pleased to provide you with this survey. Hopefully, it will help you better understand the Oklahoma City and the metropolitan area’s retail markets. Please do not hesitate to contact us if we can be of service.

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.

2 Retail Submarket Map

GLA SF Vacant SF Vac. % OKC Retail Market Totals 26,931,518 2,904,160 11.2%

3 2007 Year-End Oklahoma City Retail Market Summary North Submarket

There are two major centers of retail in this sector—the Penn Square area at the confluence of Pennsylvania and Northwest Highway and the Quail Springs area located along the Kilpatrick Turnpike between Pennsylvania and May. These two areas are anchored by strong regional malls. Penn Square with 1,100,000 square feet and Quail Springs with 1,124,000 square feet already draw significant retail sales dollars. These two centers of retail development attract shoppers from all the western, southern, and central parts of the state as well as from the entire metropolitan area. Significant development in each of these areas further solidify their strong hold on retail sales in the area.

The Quail Springs area now boasts over 2.25 million square feet of retail space and virtually every major retailer and restaurant are represented in the area. While most of the land on the east, south, and west has been developed into retail stores, a recent start of the mixed use development to the north of Quail Springs called Quail Springs Village signals continued development in the area. An IMAX theater has been announced to kickoff development, but construction has not started.

North OKC Submarket Retail Inventory 10 Year-End 2007 The Belle Isle area has well over 1.6 million square feet of retail space including Penn Square, Belle Isle

GLA SF Freestanding SF Station, and 50 Penn Place. 50 Penn Place has converted one floor that was previously leased as retail 8 space to office use. A recent announcement of a sales contract being terminated has thrown this 6 property into a marketing conundrum with a present owner that is reluctant to spend important tenant

4 finish money and no buyer to step into its shoes. Penn Square continues to prosper. It is unknown if any (millions of square feet) (millions of square

North expansion of this retail giant will be able to be put together. Belle Isle Station is leading a development 2 rush to the area east of Penn Square. Chesapeake Land Company, the major land owner in the area, 0 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 has announced that a mixed use development (office and retail) called Classen Curve between Grand and NW 56th Street will be its first development of to be leased property. Pearl’s, a well respected local seafood restaurant recently opened in this area in a small office park, and it is reported to be doing very well. This area continues to improve with new development.

North OKC Submarket Retail Vacancy There are other excellent shopping centers in this submarket. May Avenue from Northwest Highway 10% Year-End 2007 to the Kilpatrick Turnpike has long been a great retail corridor. While a number of centers on May

8% are still doing quite well, there are some vacancies emerging due to increased competition and some old-line tenants moving out. An announcement of a redevelopment of the Albertson’s at Britton 6% and May coupled with a neighborhood center on the land to the north has been made, but no dirt has 4% been turned except for a community bank. The City of the Village continues to work very hard with

2% developers and retailers to increase retail sales in their community. Some upgrading of centers in the May Avenue corridor is underway which will no doubt spur competition in this mature retail area. 0% '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 Chesapeake Land Company, a subsidiary of Chesapeake Energy, the dynamic corporation headquartered in the area, has begun to be involved in public hearings about the redevelopment of Nichols Hills Plaza which has long been one of the centers for local shopping in this submarket. When this redevelopment gets underway, there will be lots of excitement as Chesapeake has announced that it wants to bring North OKC Submarket Retail Absorption tenants to this property that have not located in Oklahoma City before. While we do not know the 2007 Year-End 300 timing of Chesapeake’s redevelopment of Nichols Hills Plaza and the surrounding area, we are certain 250 that it will be done with the same great quality and taste that they have shown with the development 200

150 of their headquarters property.

100 50 Price Edwards & Company surveyed 40 shopping centers totaling 6,232,040 square feet. Occupancy is 0 over 93.82% which is slightly lower than it was at the time of the last survey. This area remains a very -50 healthy submarket. We estimate that there are 13 freestanding retailers in this submarket with over -100 '99 '00 '01 '02 '03 '04 '05 '06 '07 715,810 square feet of space in operation. There are no vacancies reported at this time.

4 2007 Year-End Oklahoma City Retail Market Summary North Submarket

Center Class Year Built Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenant(s) Shops at the Veranda B 2006 Price Edwards & Co. 30,650 29,712 96.9% 25.00 0.00 NW 150th St & N Western Ave, OKC Karleen Krywucki/S Brinkley/Ev Ernst North Construction Totals 30,650 29,712 96.9%

Center Class Year Built Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenant(s) 2201 Memorial C 2004 Blanton Properties 101,128 0 0.0% Best Buy 2201 W Memorial Rd, OKC Tom Blanton Gordman’s 50 Penn Place C 1973/85/00 Higgins Property 141,279 14,235 10.1% $18.00 $12.00 Harold’s NW 50th St & N Pennsylvania Ave, OKC Pamela Higgins Balliet’s 6900 Place D 1981/91/92 Levy/Brooks 49,263 14,500 29.4% $7.50 $10.50 Ted’s Café 6900 N May Ave, OKC Michael Almaraz Blockbuster Belle Isle Station B 2000 Price Edwards & Co. 433,333 9,471 2.2% $18.00 $23.00 Wal-Mart Super Center NW Highway & N Classen Blvd, OKC Pat Barnes/Susan Brinkley/Ev Ernst Old Navy Britton Plaza Shopping Center E Gerald Gamble Co. 27,340 5,000 18.3% $8.00 $8.00 Johnnie’s Charcoal Broiler 2652 W Britton Rd, OKC Gerald Gamble Britton Square D 1983 Coury properties, Inc. 27,326 0 0.0% $10.50 9415 N May Ave, OKC Michael Murray Camelot Square C 1984 Blanton Property Co. 107,799 3,895 3.6% Cox Communications NW 122nd St & N Pennsylvania Ave, OKC Jeff Bolding Casady Square C 1953/83/95 Price Edwards & Co. 158,764 10,145 6.4% $7.00 $12.00 Wal-Mart Neiborhood Market W Britton Rd & N Pennsylvania Ave, OKC Pat Barnes/Susan Brinkley/Ev Ernst New Leaf Florist Centennial Plaza B 1993 CBRE/Okla. 233,794 8,800 3.8% $10.00 $15.00 Best Buy NW 58th St & N May Ave, OKC Mark Inman Home Depot Charter At May D 1963/88/96 Grace Commercial 99,757 31,000 31.1% $11.00 $6.50 Luby’s Cafeteria 9494 N May Ave, OKC Mary R. Grace/Larry Emmer Mill Creek Colonial Plaza C 1970/03 Sperry Van Ness 122,000 15,000 12.3% $8.00 Homeland 9225 N May Ave, OKC Sami Musallam Cato Colonnade D 1984 Bradys Properties 45,000 1,850 4.1% $9.00 Party Bazaar 9600 N May Ave, OKC Ali Ghaniabadi Boca Boca Café Pranzo Country Club Corner D 1959/96 JAH Realty, LP 53,477 38,472 71.9% $14.00 CompUSA 6410 N May Ave, OKC Jeff Norman/Ethan Slavin AutoZone Country Club Village D 1970/92/03 Levy/Beffort 56,000 4,000 7.1% $12.00 Computer Nerdz 2800 W Country Club Dr, OKC Mike Webb Edward Jones Cross Rock Plaza 2001 CBRE 25,060 6,150 24.5% $20.00 $0.00 3521-3561 W Memoral Rd, OKC Mark Inman French Market Mall C 1985 CRBE/Oklahoma 245,244 16,787 6.9% $12.00 $22.00 Staples 2850 NW 63rd St, OKC Mark Inman Bed Bath & Beyond Lakehurst Plaza D 2002 Sperry Van Ness 32,637 6,417 19.7% $13.00 $0.00 N Style Salon

8025 N May Ave Jason Little - Sami Musallum Gulfport Seafood Market North Lakeside Shops Shopping Center D 1950/99 Pippin Properties 67,000 21,500 32.1% $14.00 $16.00 Firestone 7300 N May Ave, OKC Phil Pippin Freddie’s Frozen Custard Lakewood Shopping Center D 1996 Price Edwards & Company 55,247 28,735 52.0% $9.25 $10.00 Gentle Dental 6901 N May Ave, OKC Karleen Krywucki Xpedx Mayfair Place D 1978 Price Edwards & Co. 95,000 10,591 11.2% $10.00 Akin’s Health Foods 2900 NW 63rd St, OKC Karleen Krywucki PetsMart Memorial Square C 37377 Blanton Property Co. 225,000 0 0.0% $0.00 $0.00 Super Target W Memorial Rd & N Pennsylvania Ave, OKC Tom Blanton PF Changs Midland Center C 1961 CBRE/Okla. 54,272 6,237 11.5% $15.00 Conn’s NW Expressway & N Independence Ave, OKC Alaina Mcglothlihn, Brian Donahue Panera Bread Nichols Hills Plaza C 1963 Price Edwards & Co. 130,000 6,741 5.2% $12.00 $16.00 Crescent Market 6501 Avondale Dr, OKC Susan Brinkley/Pat Barnes/Ev Ernst Starbucks North Penn Plaza D 1970/71 Steve Hetherington 32,000 0 0.0% Koslow’s 5601 N Pennsylvania Ave, OKC Steve Hetherington Commercial Federal Bank Northpark Mall C 1971/81 Morris Enterprises 200,000 20,665 10.3% Shogun Steak House 12100 N May Ave, OKC Kevyn Colburn B.C. Clark Penn Square Mall A 1960/88 Simon Property 1,100,000 5,000 0.5% Dillard’s 1901 NW Expressway, OKC [email protected] JC Penny Penn-Hefner Plaza D 1973/77 Haydel Associates 69,392 3,600 5.2% $12.00 $14.00 Buy For Less 2121 W Hefner Rd, OKC Aimee Dial Parrish Rent-A-Center Quail Plaza C 1965/89/91 Morris Enterprises 144,335 35,000 24.3% $10.00 $15.00 Tuesday Morning 10950 N May Ave, OKC Kevyn Colburn Goodyear Tire Quail Springs Mall A 1980/98/99 General Growth Mgmt.,Inc. 1,124,482 16,550 1.5% Dillard’s W Memorial Rd & N Pennsylvania Ave, OKC Kelly Waswo Macy’s Quail Springs MarketPlace B 1997/01 Blanton Property Co. 450,000 2,004 0.5% Ultimate Electronics W Memorial Rd & N Pennsylvania Ave, OKC Tom Blanton Old Navy Quail Springs Village E 1983 JAH Realty, L.P. 26,500 1,680 6.3% $18.00 RadioShack 13801 N Pennsylvania Ave, OKC Ethan Slavin Pier 1 Imports Quail Village D 2007 Levy Brooks 56,000 33,496 59.8% $20.00 $18.00 Louis Almarez Shoppes at North Pointe D 2002 Mazaheri, Investments 37,400 0 0.0% $17.00 $18.00 Jimmy’s Egg W Memorial Rd & N May Ave, OKC Fred Mazaheri City Bites Sportsmen’s Warhouse Center 0 $0.00 $0.00

Spring Creek North D 1981 Price Edwards & Co. 89,006 5,005 5.6% $12.00 Blockbuster Video 12200 N May Ave, OKC Pat Barnes/Susan Brinkley/Ev Ernst Homeland The Plaza at Quail Springs E 2005 JAH Realty, L.P. 104,001 2,580 2.5% $18.00 $0.00 Fabrics Unlimited 2221 NW 138th St, OKC Ethan Slavin Dollar Tree Town & Country Village D 1982/92 Bradys Properties 43,500 0 0.0% $12.00 Cocina De Mino 12335 N May Ave, OKC Ali Ghaniabadi Subway Village Park E 1972 Johnson Investment Co. 23,000 0 0.0% $9.00 Hi Performance Scuba 10405 N May Ave, OKC Raymond Johnson Audio Dimension Village Park North E 1972 Coldwell Banker 16,400 0 0.0% $0.00 $0.00 10405 N May Ave, OKC Lee Bollinger Village Plaza D 1964/73/89 Herndon & Kelley 49,133 0 0.0% $6.00 $6.00 Westlake Hardware 1505 W Britton Rd, OKC Jay Crabb Dollar General Wilshire Village E 1986 Dr. Scott Samara,M.D. 27,000 0 0.0% $11.00 $12.00 Dodson Art Gallery W Wilshire Ave & N Western Ave, OKC Dana Wild Garden North Submarket Totals 6,232,040 385,106 6.2%

5 2007 Year-End Oklahoma City Retail Market Summary Northwest Submarket

This submarket is bounded on the east by Pennsylvania (south of Northwest Highway) and Hefner Parkway (north of Northwest Highway) and 39th Expressway on the south. Northwest Highway continues to be a major artery funneling over 125,000 people into the City on a daily basis. The population base is largely middle class income and professional.

Northwest Highway has historically been one of the strongest shopping areas in the metropolitan area and continues to collect some of the highest rents. However, there continues to be fairly significant vacancy in some of the smaller centers on this major thoroughfare and in centers where there are empty anchor spaces. Competition among centers for tenants is strong. There is probably more lateral movement of tenants in this submarket than any other. This is the only submarket with no new construction underway.

Development of housing in the northwest portion of this submarket, spurred to some degree by the extension of the Kilpatrick Turnpike to County Line Road on the west and to I-40 on south, leads us to believe that new retail development could occur in these areas over the

Northwest OKC Submarket Retail Inventory next few years. The rapid growth of Gaillardia and its surrounding areas with its strong 6 Year-End 2007 demographic profile has created an opportunity for some new development in the Kilpatrick

5 GLA SF Freestanding SF Turnpike area between Portland and Rockwell. Rumors of new developments in the Rockwell

4 area have surfaced.

3 Price Edwards & Company surveyed 30 shopping centers containing 3,473,504 s.f. with an occupancy 2

(millions of square feet) (millions of square of 85.71%, which is approximately the same occupancy as in the last survey. Northwest 1

0 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 The long term health of this sector is somewhat of a concern as most national retailers seem to be looking to newer centers in higher growth areas. Contributing to these concerns is the previously mentioned lack of new construction and lagging demographics.

We estimate that there are 18 freestanding retailers operating in this submarket with over 639,465

Northwest OKC Submarket Retail Vacancy square feet of space with no vacancy. 20% Year-End 2007

15%

10%

5%

0% '98 '99 '00 '01 '02 '03 '04 '05 '06 '07

Northwest OKC Submarket Retail Absorption 350 2007 Year-End 300 250 200 150 100 50 0 -50 -100 '99 '00 '01 '02 '03 '04 '05 '06 '07

6 2007 Year-End 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 Levy/Beffort 42,200 0 0.0% $7.00 $10.00 Wall’s NW 122nd St & N MacArthur Blvd, OKC John Cohlmia Pizza Hut Delivery Brixton Square C 1985 GBR Properties, Inc. 122,253 44,119 36.1% $8.00 $10.00 Hollywood Theatre 7101 NW Expressway, OKC Bob Parker Party Galaxy Circuit City Center D 49,339 0 0.0% $13.00 $0.00 Circuit City NW Highway, OKC Casual Male Cornerstone Plaza D 58/78/03 NAI Sullivan Group 65,748 5,850 8.9% $7.00 $8.00 Redwing Shoes NW 39th St & N MacArthur Blvd, OKC David Hartnack Jackson Hewitt Council Crossing C 1986/92/03 142,197 44,547 31.3% $7.00 $10.00 Buy For Less 8101 NW Expressway, OKC Dollar General Courtyard Plaza D 1984 Levy/Beffort 38,846 3,799 9.8% $10.50 Blockbuster Video 6401 NW Expressway, OKC Michael Almaraz At the Beach Lakeshore Shopping Center C 2002 Price Edwards & Co. 139,447 28,735 20.6% $8.50 $8.00 Academy Sporting Goods 4200 NW Expressway, OKC Karleen Krywucki Buffalo Wild Wings Lakeshore Shops D 1998 Charles Shadid 33,140 7,400 22.3% $6.00 $8.00 Home Consignment 7930 N MacArthur Blvd, OKC Charles Shadid Al’s Bicycles MacArthur Shops E 1983 Centennial Property Mgmt. 25,630 3,425 13.4% $9.00 $9.00 SRO Dance Studio W Britton Rd & N MacArthur Blvd, OKC Jim Sanders Dillard’s, Steve & Barry’s Market Place OKC C 1992 Price Edwards & Co. 178,854 36,508 20.4% $11.00 $6.50 Hemisphere 5501 NW Expressway, OKC Susan Brinkley/Pat Barnes/Ev Ernst Market Plaza C 1981/82 Levy/Beffort 151,439 29,666 19.6% $6.00 $12.00 Petco 7001 NW Expressway, OKC Leah Oliver Aldi MayFair Village C 1948/90 CBRE/Okla. 174,911 34,991 20.0% $14.00 $10.00 Michael’s Arts & Crafts NW 50th St & N May Ave, OKC Brian Donahue Steinmart

Newport E 1972 Charles Shadid 25,740 5,000 19.4% $5.00 $6.00 Seven-Eleven Northwest 9120 N MacArthur Charles Shadid Sunshine Laundry Oklahoma City Market Square C 1983/00 Price Edwards & Co. 143,579 17,198 12.0% $7.00 $9.00 Watson’s Pools 8400 NW Expressway, OKC Susan Brinkley/Pat Barnes/Ev Ernst Dress Barn Peppertree Square D 1984 Levy/Beffort 77,171 51,192 66.3% $7.00 Tan & Tone America 6444 NW Expressway, OKC Leah Oliver Portland Plaza C JAH Realty, L.P. 103,312 8,259 8.0% $12.00 $10.00 Locke Supply NW 39th St & N Portland Ave, OKC Ethan Slavin Outdoor Outfitters Quailbrook Center D 1987 Levy/Beffort 90,389 1,941 2.1% $12.50 Panera Bread 4401 W Memorial Rd, OKC John Cohlmia Mercy Health System Rock Center E 1982 Levy/Beffort 29,000 4,900 16.9% $10.50 Avis 6700 NW Expressway, OKC John Cohlmia Rockwell Northwest C 1984/99 JAH Realty, L.P. 163,000 12,775 7.8% $10.00 $14.00 Hobby Lobby 7000 NW Expressway, OKC Ethan Slavin FedEx Kinkos Rockwell Plaza B 1978/83/98/01 CBRE/Okla. 406,000 19,000 4.7% $12.00 $18.00 Target 8375 N Rockwell Ave, OKC Mark Inman Famous Footwear Silver Springs B 2000 CBRE/Okla. 700,000 1,500 0.2% $15.00 $20.00 Wal-Mart 7600 NW Expressway, OKC Stuart Graham Home Depot Springbrook D 1968 First Commercial Mgmt, Inc. 50,000 0 0.0% $9.00 All American Fitness 6207 NW Expressway, OKC John W. Meek, RPA Hollywood Video Springdale C 1961/86/93/99 Grace Commercial 126,000 26,000 20.6% $7.00 $4.50 Rent Way NW 50th St & N Meridian Ave, OKC Mary R. Grace/Larry Emmer Dollar General Walnut Village D 1986/00 Howard Properties 53,850 2,800 5.2% $10.00 $11.00 Lady of America 122nd & Rockwell Bill Howard Warr Acres D 1950/94 Ken Park 34,400 0 0.0% $6.00 $10.00 Big Red Shop NW 50th St & N MacArthur Blvd, OKC Ken Park Taj Grocers Warwick D 1985 Ta Enterprises 69,500 0 0.0% $8.00 Crest 11122 N Rockwell Ave, OKC Thung Ta Dollar General Warwick Crossing D 1995 NAI Sullivan Group 31,804 10,019 31.5% $12.00 $0.00 Remax W Hefner Rd & N Rockwell Ave, OKC Bob Sullivan Athletic Village Warwick North Village D 1978/84 Griffin Law Offices 30,000 5,000 16.7% $12.00 SuperCuts NW 122nd St & N Rockwell Ave, OKC Brian Griffin Edward Jones Warwick Plaza D 1978-84 Levy/Brooks 45,600 2,750 6.0% $8.00 State Farm Insurance NW 122nd St & N MacArthur Blvd, OKC John Cohlmia Wall’s West Park Mall C 1972 Saul Centers,Inc. 130,155 88,881 68.3% $5.00 $12.00 Homeland NW 63rd St & N MacArthur Blvd, OKC Allen Gersh US Post Office Northwest Submarket Totals 3,473,504 496,255 14.3%

7 2007 Year-End Oklahoma City Retail Market Summary South Submarket

This submarket includes an area generally bounded by I-40 on the north, Moore on the south, I-35 on the east, and Will Rogers International Airport on the west. It is anchored by Crossroads Mall, a 1,111,000 square foot regional shopping center located at the intersection of Interstate 35 and Interstate 240. Crossroads Mall’s dominance in this sector of Oklahoma City continues to decline as Macy’s has now announced that they will be leaving the mall. This will make the third anchor to depart with only one being replaced to date. The Interstate 240 corridor which runs west from Crossroads Mall has been one of the strongest retail areas in all of Oklahoma City. Although some business has been lost to the Moore area and to new centers located south of this corridor, it is still quite important to retail in the metropolitan area. A new center, I-240 Penn Park (242,000 s.f.) has been completed, leased up, and sold for a very high price showing that there is still significant interest from tenants and buyers in the I-240 corridor. Its key tenants are Marshalls, Ross, Michaels, and Mardels. As the City has grown to the west and to the south, other areas of this submarket are showing signs of development.

South OKC Submarket Retail Inventory Price Edwards and Company surveyed 34 shopping centers with 4,494,312 s.f. Occupancy is 83.5%. 10 Year-End 2007 Significant vacancies continue in the older centers located north of the I-240 corridor. In addition,

GLA SF Freestanding SF there is over 110,000 s.f. of vacancy at the intersection of I-240 and South Pennsylvania where some 8 tenants moved to I-240 Penn Park, the new center in the area. On the other hand, the new 240 6 Penn Park center has added good quality space and drawn excellent national tenants to this sector,

4 and it has breathed some fresh life into this important intersection. Reports indicate new anchors have (millions of square feet) (millions of square

South surfaced for Walnut Square and Southern Hills and announcements will be made in the near future. 2 Crossroads Mall shows over 240,000 s.f. of vacancy which makes up over one-third of the vacancy 0 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 in this submarket.

We estimate that there are 43 freestanding retailers in operation in the south submarket with a total square footage of 2,193,417 square feet. We estimate that there are two buildings with 53,000 square feet vacant.

South OKC Submarket Retail Vacancy 20% Year-End 2007 Rumors continue that Wal-Mart and Target are both working on potential development sites in the west side of this submarket. However, local residents are fighting these infill developments due to 15% traffic concerns. Tri-City which is located at the intersection of I-44 and Highway 37 has been removed

10% from the survey because it is no longer being utilized as retail space.

5%

0% '98 '99 '00 '01 '02 '03 '04 '05 '06 '07

South OKC Submarket Retail Absorption 350 2007 Year-End 300 250 200 150 100 50 0 -50 -100 -150 '99 '00 '01 '02 '03 '04 '05 '06 '07

8 2007 Year-End Oklahoma City Retail Market Summary South Submarket

Center Class Year Built Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenant(s) 92nd & South Western D 2008 30,000 26,000 86.7% $0.00 $0.00

Towne South Center C 1977/88/05 NAI Sullivan 130,000 3,000 2.3% $12.00 $16.00 Chuck E. Cheese SW 74th St & S Walker Ave, OKC On The Border South Construction Totals 160,000 29,000 18.1%

Center Class Year Built Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenant(s) 29th & Kentucky Shops D 1970 L & S Real Estate 32,500 2,500 7.7% $4.00 Family Dollar SW 29th St & S Kentucky Ave, OKC Young Shin New Century Food 74 South D 1973/77/06 Paul B. Odom Construction 50,000 0 0.0% $10.00 $12.00 Pancho’s Mexican Restaurant SW 74th St & S Pennsylvania Ave, OKC Linda Brown At the Beach 89’er Plaza E 1984 Robert Jenks 30,000 7,500 25.0% $4.00 Body Beautiful SW 89th ST & S Walker Ave, OKC Robert Jenks Sharp Cleaning Airline C 1999 Charles Shadid 121,368 10,000 8.2% $3.00 $5.00 Tom’s Tires 3400 SW 29th St, OKC Charles Shadid El Rodeo Carnecaria Almonte Square C 1963 Blanton Property Co. 107,676 74,745 69.4% Almonte Bingo 6100 S May Ave, OKC Jeff Bolding Brookwood North I & II D 1998 Charles Shadid 58,249 1,200 2.1% $5.00 $7.00 China Wok Restaurant SW 89th St & S Western Ave, OKC Charles Shadid Chelino’s Restaurant Brookwood Shopping Center C 1979/97 Precor Realty Advisors, Inc. 129,772 20,500 15.8% $8.00 $14.00 Hobby Lobby SW 89th St & S Western Ave, OKC Rick Pritchard Centre 8400 E 1983/05 Precor Realty 29,355 0 0.0% $9.00 $8.00 Dan’s Old Time Hamburger 8400 S Western Ave, OKC Rick Pritchett Johnnie’s Bakery Chatenay Square C 2000/06 PB Odom, III 114,115 1,600 1.4% $15.50 Homeland SW 104th St & S Pennsylvania Ave, OKC PB Odom, III Panera Bread Country Park Mall D 1978 Concept Companies 30,000 4,500 15.0% $4.00 Value Thrift SW 59th St & S Agnew Ave, OKC Sam Gotez Diaper Outlet Crossroads Mall A 1974/92 Crossroads 1,266,462 243,000 19.2% $10.00 $50.00 Macy’s 7000 Crossroads Blvd, OKC Jeff Probasbo Steve & Barry’s Crossroads Shopping Center D 1987 AMCON Resources 31,269 1,400 4.5% $14.00 Men’s Wearhouse 7100 S I-35 Service Rd, OKC Allen Gann Subway Economy Square C 1963/98 Economy Square Inc. 203,451 30,000 14.7% Blockbuster Video SW 29th St & S May Ave Ave, OKC Charles Oppenheim Walgreens South Grant Square C 1958/91/92 Coldwell Banker Hocker Assoc. 103,810 4,000 3.9% $9.00 $6.00 Family Dollar SW 44th St & S Pennsylvania Ave, OKC Aaron Rents Greenway Plaza D 1985 Levy/Beffort 73,240 1,400 1.9% $11.00 Westlake Hardware SW 119th St & S Western Ave, OKC Leah Oliver Tuesday Morning Hillcrest Shopping Center D Blanton Property Co. 50,000 25,000 50.0% Dollar General 2100 SW 59th St, OKC Jeff Bolding Rent-A-Center I-240 Penn Park C 2005 CBRE/Okla. 242,076 0 0.0% $10.00 $20.00 Old Navy I-240 & S Pennsylvania Ave OKC Mark Inman PetsMart Lightning Creek D 1985 Lightning Creek Complex 48,005 2,000 4.2% $6.00 $6.50 8100 S Western Ave, OKC Tammie Knight Mayridge Shopping Center D 1956 Shadid Properties 38,000 0 0.0% $3.00 $4.00 Dollar General Store SW 44th St & S May Ave, OKC Buddy Shadid Palagio Shops on S Western C 2005 PB Odom, III 44,852 2,125 4.7% $15.50 Marble Slab SW 104th St & S Western Ave, OKC PB Odom, III Pizza Hut Reding Shopping Center D 1972 JAH Realty, L.P. 69,344 36,822 53.1% $9.00 $5.00 El Chico Grand Blvd & S Western Ave, OKC Ethan Slavin Dollar General South Meridian Plaza D 1983 John Gholami 36,000 2,000 5.6% $11.00 $13.00 Waffle House 1100 S Meridian Ave, OKC John Gholami or Judy Neal Quizno’s South Park D 1975 South Park 86,848 0 0.0% Dept. of Corrections 4500 S May Ave, OKC Mary Dolan Thomas Messiah Church Ministries South Penn Plaza D 1984 Commercial OKC 90,000 3,600 4.0% $6.00 Family Dollar 1620 SW 89th St, OKC Mark Weinmeister State Farm Insurance South Shields Plaza C 1972/85/92/05 CBREs/Okla. 200,820 59,874 29.8% $6.00 $18.00 Langston’s Western Wear SE 74th St & S Shields Blvd, OKC Mark Inman/Brian Donahue Burlingon Coat Factory Southeast Plaza C 1972/91 Levy/Beffort 185,266 68,132 36.8% $4.00 $8.50 Starbuck’s SE 44th St & S High Ave, OKC Leah Oliver Joe’s Crab Shack Southern Hills C 1964/89/90 Phillips Edison & Co. 210,419 63,089 30.0% $18.00 $8.00 Dollar Tree SW 74th St & S Pennsylvania Ave, OKC Chris Corbin Tan & Tone American Southwestern Plaza C 1962/87 Southern Properties 117,846 8,000 6.8% $6.00 $10.00 Cocina de Mino SW 59th S & S Western Ave, OKC Steve Cupit Family Dollar Stonebriar Shopping Center E 2005 Brady Properties 30,000 5,200 17.3% $12.00 $0.00 Rusty’s Custard 13400 S Western Ave, OKC Ali Ghianiabadi Valley Brook Shops E 1998 Charles Shadid 25,500 0 0.0% $8.00 $12.00 Corner Quick Stop 1500 SE 59th St, OKC Charles Shadid Cover Girls Walker Square C 1983 Precor Realty Advisors 136,000 0 0.0% $6.00 $8.00 El Mariachi Super Mercado SW 59th St & S Walker Ave, OKC Rick Pritchett MetroTech Beauty School Walnut Square C 1985 Price Edwards & Co. 294,500 56,095 19.0% $9.00 $12.00 Big Lots 2209 SW 74th St, OKC Pat Barnes/Susan Brinkley/Ev Ernst Health Food Center Westernview Center C 1958/78 Levy Beffort 104,000 18,934 18.2% $12.00 $12.00 Taste of China I-240 & S Western Ave, OKC Leah Oliver Howard Brothers Florist Westminster Village D 1986 Brady’s Properties 79,500 12,600 15.8% $10.00 Bowling Green II 10625 S Western Ave, OKC Ali Ghaniabadi APAC Markeing South Totals 4,494,312 740,942 16.5%

9 2007 Year-End Oklahoma City Retail Market Summary Edmond Submarket

Edmond is a fast growing community located 15 miles north of downtown Oklahoma City. It has a population of over 75,000 plus a student population of 22,540 at the University of Central Oklahoma and Oklahoma Christian University of Science and Arts. It has a very desirable school system, which serves areas of north Oklahoma City as well as Edmond. Demographics for this community are considered to be quite strong with average household income in excess of $70,000 and growing.

Price Edwards & Company surveyed 24 shopping centers with 2,168,376 square feet of space. Vacancy is 10.76% and is approximately the same as shown on the mid-year 2007 summary. While there was little change in vacancy totals, there were several major changes in this submarket. Edmond Market Place located at 33rd & Boulevard is losing Hobby Lobby, its long time anchor, to The Shoppes on Broadway which is the Tom Parker redevelopment of the Wal-Mart site that is underway at 33rd & Broadway. On the other hand, Spring Creek Village, located at the northwest corner of 15th and Bryant leased all 41,700 s.f. of vacancy that was shown on the last survey and is now 100% leased. Several other centers had occupancy changes during the

Edmond Submarket Retail Inventory past six months. University Plaza leased up 14,000 of its vacant square footage, and Edmond Plaza lost 5 Year-End 2007 approximately 16,000 s.f. feet of occupancy. Ashling Square located at the southwest corner of 2nd

GLA SF Freestanding SF and Bryant is undergoing a total renovation and was moved to the under construction portion of the 4 survey. In addition, there are 21 free standing retailers with 1,289,425 s.f. There is one partial vacancy 3 of 23,000 s.f. (Academy Sporting Goods building on Broadway). Overall, this submarket continues

2 to be quite healthy. (millions of square feet) (millions of square 1 Edmond New construction continues to be the primary news item for this submarket. The two major 0 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 developments along I-35 at Covell and 15th Street respectively have not progressed significantly since the last survey. The 15th Street project is still actively working with the City of Edmond on it development plan and budget. The Covell owners lost its development partner, Simon Properties Group, and it is unknown if they have a new arrangement put together. There is a 120,000 s.f. Lowe’s under construction at Covell and Kelly. This retailer will join Walgreen’s which is open at the

Edmond Submarket Retail Vacancy hard corner. It is unknown if the rest of this large retail development will start in the near future. As 15% Year-End 2007 mentioned in our last survey, a second phase of Spring Creek Plaza at 15th and Bryant (called the

12% Bridges at Spring Creek) has been announced, but at this time, no work is underway. Foxfire Plaza, which is scheduled to be developed next to the Wal-Mart SuperCenter at 15th and I-35, continues to 9% be marketed, but there are still no reports of any leasing at this location. In addition, there are several 6% small strip centers underway throughout this thriving community.

3%

0% '98 '99 '00 '01 '02 '03 '04 '05 '06 '07

Edmond Submarket Retail Absorption 80 2007 Year-End 60 40 20 0 -20 -40 -60 -80 -100 '99 '00 '01 '02 '03 '04 '05 '06 '07

10 2007 Year-End Oklahoma City Retail Market Summary Edmond Submarket

Center Class Year Built Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenant(s) University Village B 2000/2004 Sooner Investment 76,804 3,000 3.9% $20.00 $23.00 Wal-Mart Neighborhood Market E 2nd St & N Bryant Ave, Edmond Brandy Tice Blockbuster Video Shoppes On Broadway C 2006 Jackson Development 160,000 25,000 15.6% $14.00 $22.00 Starbucks E 33rd S & S Boulevard St, Edmond Tom Parker Hobby Lobby Ashling Square D 1979/2007 JAH Realty, L.P. 31,061 16,256 52.3% $20.00 $0.00 Panda Express 301 S Bryant Ave, Edmond Ethan Slavin At the Beach Edmond Construction Totals 267,865 44,256 16.5%

Center Class Year Built Leasing Agent GLA Vacant Vac. & Rate 1 Rate 2 Anchor Tenant(s) 33rd & Boulevard D 1982 Lee Segal 49,400 0 0.0% $7.00 $0.00 Mardel's E 33rd St & S Boulevard St, Edmond Lee Segal CVS Berkshire Plaza D 2002 Mazaheri Investments, LLC 39,000 1,800 4.6% $12.00 Office Depot E 15th St & S Broadway St, Edmond Pat Barnes/Susan Brinkley/Ev Ernst Mr. Goodcents Boulevard Village D 1985 Maloy Properties,LLC 36,604 9,804 26.8% $6.50 $9.50 Radio Shack 3404-3456 S Boulevard St, Edmond Joy Maloy Pizza Hut Broadway South D 1977 Levy/Beffort 61,524 0 0.0% $15.00 Edmond Music 3320 S Broadway St, Edmond John Cohlmia Bryant Square C 1973/1992 Price Edwards & Co. 282,000 6,343 2.3% $7.00 $12.00 Old Navy E 2nd St & N Bryant Ave, Edmond Susan Brinkley/Pat Barnes/Ev Ernst Bed Bath & Beyond Danforth Square C 1999 Grisson Investments 108,000 2,000 1.9% $12.00 $14.00 Hobby Lobby W Danforth Rd & N Kelly Ave, Edmond Jim Grissom Athletic Village Eagle Crest D 1983 CBRE/Okla. 51,000 7,790 15.3% $11.00 Blockbuster Video 3000 E Memorial Rd, OKC Stuart Graham Edmond Crossing C 1995 Price Edwards & Co. 159,600 10,000 6.8% $12.00 $12.00 Homeland 24 E 33rd St, Edmond Susan Brinkley, Pat Barnes, Ev Ernst TJ Maxx Edmond Edmond Exchange B 2003 JAH Realty, L.P. 71,243 9,395 13.2% $13.00 $18.00 On the Border 3233 S Broadway, Edmond Ethan Slavin Coach's Edmond Market Place D 1981/82/90 CB Richard Ellis/OKLA 96,112 63,079 65.6% $6.00 $12.00 Delta Café Alaina Mcglothlihn, Brian 3301 S Boulevard St, Edmond Donahue Edmond Plaza C 1964/89/05 Keller/ Williams NW Office 158,373 28,468 18.0% $9.00 $16.00 Westlake Hardware E 15th St & Broadway Ext, Edmond Herb Forrester Albertson's Edmond Trails E 25993 CBRE/Okla. 25,215 2,000 7.9% $12.00 $15.00 YMCA of Edmond 289 S Santa Fe Ave, Edmond Stuart Graham Game X Change Homestead Plaza D 2003 Paradign Realty 39,000 12,000 30.8% $15.00 Oasis Pool W Danforth Rd & S Santa Fe Ave, Edmond Charlene Wilson Buffalo Wild Wings Kelly Plaza D 1984 CB Richard Ellis/Okla. 85,639 34,929 40.8% $5.00 $12.00 Colortyme E 2nd St & N Kelly Ave, Edmond Mark Inman Sherwin Williams Kickingbird C 1983/88 Levy/Beffort 110,000 2,050 1.9% $13.00 Kickingbird Regal Cinema 1323 W Danforth, Edmond Jim Rose Interurban North Oaks D 1983/89 CB Richard Ellis/Okla. 72,560 11,000 15.2% $12.00 Ace Hardware 821 W Danforth Rd, Edmond Mark Inman, Brian Donahue Dollar General Oak Brook D 1982/91/92 Wiggin Properties 43,006 6,396 14.9% $10.00 Tan & Tone America 218 S Santa Fe Ave, Edmond David Huffman Hunan Oxford Pointe Shops E 1986 Price Edwards & Co. 26,600 2,800 10.5% $9.00 $10.00 The Vision Center W 2nd St & N Santa Fe Ave, Edmond Susan Brinkley Pebblecreek D 2001 Levy/Brooks 62,500 0 0.0% $18.00 Kohl's W Danforth Rd & S Santa Fe Ave, Edmond John Cohlmia Dollar Tree Signal Ridge D 1986 Fotis Bargeliotes 35,000 0 0.0% $6.00 $7.00 Conoco 1700 S Kelly Ave, Edmond Fotis Bargeliotes Daylight Donuts Spring Creek Plaza D 2000 Zerby Interests 63,000 12,759 20.3% $19.00 $16.50 Talbot's E 15th St & S Bryant Ave, Edmond Caleb Hill Panera Bread Spring Creek Village of Edmond D 2005 CB Richard Ellis/Okla. 62,000 0 0.0% $24.00 $26.00 Ballengers Furniture E 15th St & S Bryant Ave, Edmond Mark Inman Legacy Bank University Plaza B 2000 Sooner Investment 400,000 6,000 1.5% $18.00 $22.00 Target Super Center E 2nd St & N Bryant Ave, Edmond Brandy Tice Lowe's Home Improvement Willow Creek E 1985 Coury Properties 31,000 4,800 15.5% $10.00 $10.00 Randy's M & M W 2nd St & N Santa Fe Ave, Edmond Mike Murray Daylight Donuts Edmond Submarket Totals 2,168,376 233,413 10.8%

11 2007 Year-End Oklahoma City Retail Market Summary West-Central Submarket

This submarket includes all the shopping center properties south of 39th Expressway, north of Interstate 40, west of Lincoln, plus Yukon and Mustang. The major development growth in this submarket is in the Yukon and Mustang areas where strong residential expansion has been underway for several years.

Westgate Marketplace at MacArthur and I-40 remains the most significant retail development in this sector. It includes over 1,000,000 square feet of major retail stores which includes Wal-Mart Supercenter, Hobby Lobby, Office Depot, Home Depot, Ross Dress for Less, Best Buy, and many other national and regional retailers.

There is significant new development underway in Yukon along I-40. Target has purchased their site just south of I-40 on the west side of Garth Brooks, and is well underway. We are told that 273,000 s.f. of space which is made up of Super Target, J.C. Penney, a 20,000 s.f. junior anchor, and 27,000 s.f. of shops will be built. Phase II of West End Pointe is underway with the 8-screen Dickinson theater having opened and approximately 40,000 s.f. of shops under construction.

West-Central OKC Submarket Retail Inventory 10 Year-End 2007 Yukon has significant existing retail space, particularly in the area of Garth Brooks and I-40. West

GLA SF Freestanding SF End Pointe anchored by Lowes and Kohls, Chisholm West, a Wal-Mart Super-Center and several 8 smaller neighborhood and strip centers provide over 1 million s.f. of retail within a one half mile radius 6 of this intersection.

4

(millions of square feet) (millions of square The I-40 and Portland area continues to expand as the major retail furniture and design center for the 2 community and the state. By our count, there are 33 stores, containing over 1.6 million square feet,

West-Central 0 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 operating in this area that specializes in furniture and accessories. A number of the stores have moved from operating shopping centers in other parts of the city which have negatively affected the tenant mix and, in some cases, the occupancy of those centers.

In the 23rd and Classen area of this submarket, our Asian business center continues to grow and

West-Central OKC Submarket Retail Vacancy prosper. Anchored by its major grocery store, Cao Nguyen Supermarket, specializing in ethnic foods, 25% Year-End 2007 more buildings are being renovated to provide shopping for this fast growing part of the community.

20% National anchors in the area are primarily drug stores with CVS and Walgreen’s being represented at the 23rd and Classen intersection. Older strip centers are being renovated and converted to ethnic use 15% along Classen Boulevard. These efforts are definitely improving this section of the market.

10%

5% The 39th Expressway retail area which has been suffering deterioration for a number of years is showing some signs of rebirth as some centers are being renovated and retenanted. There has been 0% '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 a push by the City of Warr Acres to spur some retail development in this area in order to increase this bedroom community’s sales taxes.

Price Edwards and Company surveyed 30 shopping centers totaling 3,708,897 s.f. Occupancy is 91.71%, which is approximately the same occupancy that we had at the last survey. There are 66 free West-Central OKC Submarket Retail Absorption standing retailers (including furniture users) in this submarket. There are 3,619,990 s.f. of space of 2007 Year-End 350 which 132,201 s.f. of vacant space in 5 properties. 300

250

200

150

100

50

0

-50 '99 '00 '01 '02 '03 '04 '05 '06 '07

12 2007 Year-End 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) West Pointe II C 100,000 40,000 40.0% $0.00 $0.00

Target Center C 273,000 27,000 9.9% $0.00 $0.00

West-Central Construction Totals 373,000 67,000 18.0%

Center / Address Class Year Built Leasing Agent / Co. GLA Vacant Vac. % Rate1 Rate 2 Anchor Tenant(s) 16th & Indiana D 2002 Charles Shadid 41,079 0 0.0% $3.00 $5.00 Discount Dollar Store NW 16th St & N Indiana Ave, OKC Charles Shadid Super Ahorro Latino 36th & May Center C 1986 B.D. Eddie Enterprises 97,500 1,250 1.3% $7.00 $0.00 Pole Position Raceway NW 36th St & N May Ave, OKC Terry McGuire Ann Arbor Terrace E 1971 Levy/Brooks 30,000 3,000 10.0% $8.00 Family Dollar 4913 NW 23rd St, Yukon Jim Rose Arvest Plaza D 1986/2000 J. S. Ferguson 32,600 1,200 3.7% $9.00 Arvest Bank 915-917 S Cornwell Dr, Yukon J.S. Ferguson Chisholm West C 1979/82 Lev/Beffort 232,510 34,771 15.0% $5.00 $13.00 Big Lots 1100 S.11th St, OKC Michael Almaraz DeVille C 1964/92/94 Levy/Beffort 125,377 29,036 23.2% $6.00 $6.00 Buy For Less NW 23rd St & N Council Rd, OKC Leah Oliver Heart & Hand Thrift Glen Oaks D 1968/98 JAH Realty, L.P. 49,161 1,800 3.7% $15.00 $7.00 Westlake Hardware NW 23rd St & N Rockwell Ave, OKC Ethan Slavin Blockbuster Video MacArthur Court D 1985 CPG Properties 35,228 15,000 42.6% $8.00 $8.50 SW Dental Lab 3820 N Mac Arthur Blvd, OKC John Gholami Concina de Mino MacArthur Park D 1997 Charles Shadid 55,506 0 0.0% $5.00 $6.50 Community Thrift Store 2300 N MacArthur Ave, OKC Charles Shadid Queen of Sheeba Restaurant Meridian Plaza D 1959 Baker First 90,590 14,582 16.1% $5.00 $4.00 James Lighting NW 16th St & N Meridian Ave, OKC Judy Crews Dollar General Store

Mustang Creek Plaza D 2001 Mustang Development, LLC 33,000 0 0.0% $9.50 $0.00 Marilyn Pryor Realty West-Central 821 S Mustang Rd, Mustang Gretchen Bybee Island Tan Mustang Shopping Center D 2004 CBRE/Okla. 30,700 1,600 5.2% $16.00 $14.00 Dollar Tree 216 N Mustang Mall Terr, Mustang Stuart Graham Cato Mustang Trade Center C 1983 LandRun Commercial 106,850 1,200 1.1% $8.50 Wal-Mart Hwy 152 & N Mustang Rd, Mustang Jon Russell Homeland Old Mill D 1964/78 National Properties 82,730 8,400 10.2% $4.00 $6.00 Locke Supply 301 Elm Ave, Yukon Ray Wright Penn Crossing D 1994 CBRE\Okla. 144,128 48,000 33.3% $6.00 $18.50 Wal-Mart Neighborhood Market NW 23rd St & N Pennsylvania Ave, OKC Stuart Graham FedEx Kinkos Portland Square D 1958/87 Bob Thorpe 38,000 10,000 26.3% $4.00 Sam’s Wholesale Liquor NW 23rd St & N Portland Ave, OKC Chuck Johnson Rock Glen Center E 1994 NAI Sullivan Group 25,308 7,340 29.0% $6.00 Coleman’s Pawn 1500 N Rockwell Ave, OKC Labor Ready Shartel Plaza D 1965 Pro Realty 70,000 5,600 8.0% $10.50 CVS 5225 N Shartel Ave, OKC Greg Downs Adobe Grill Silver City Center D 1974/94 Sperry Van Ness 88,000 23,200 26.4% $7.00 $4.00 Tractor Supply 101 N Mustang Rd, Mustang Sami Musallam Curves for Women Ten-M D 1958/88/91 Joe LaBar 33,000 0 0.0% $7.00 Summit Business System NW 10th St & N Meridian Ave, OKC Joe LaBar Apple Tree Antique Mall Walnut Creek D 1974 Charles Shadid 62,822 0 0.0% $3.00 $4.00 Thermo Roll Shutters 1110 N MacArthur Blvd, OKC Charles Shadid Affordable Furniture West End Pointe B 2001 Grace Company 507,500 1,710 0.3% $16.00 $20.00 Lowe’s I-40 & Garth Brooks Blvd, Yukon Mary Grace/Larry Emmer Kohl’s West Point Shoppes E 2006 Price Edwards & Co. 25,000 17,290 69.2% $14.00 $16.00 W Reno Ave & N Mustang Rd, Yukon Susan Brinkley/Ev Ernst Westgate Marketplace A 2000 Zerby Interests 1,000,000 26,000 2.6% $23.00 Wal-Mart I-40 & N MacArthur Blvd, OKC Caleb Hill Home Depot Westoaks Village D 1964/74/82 Baker - First 91,347 2,000 2.2% $4.00 Family Dollar NW 10th St & N Rockwell Ave, OKC Anna Conrady Cabinet Outlet Will Rogers C 1982 Charles Shadid 160,000 8,600 5.4% $4.00 $6.00 Oriental Imports 3000 N Portland Ave, OKC Charles Shadid McSalty’s Pizza Windsor Hills C 1960/1998 Phillips Edison Co. 235,561 46,000 19.5% $6.50 $12.00 Crest Foods 4601 NW 23rd St, OKC Chris Corbin Big Lots Windsor Park E 1982 Freeman Companies 26,700 0 0.0% $12.00 $10.00 CiCi’s Pizza 2500 N Meridian Ave, OKC Tom Freeman Yukon Hills C 1978 JAH Realty, L.P. 127,200 0 0.0% $6.00 $9.00 Cross Trainers Fitness W Vandament Ave & S Cornwell Dr, Yukon Ethan Slavin Buy for Less Yukon Shopping Center D 2005 CBRE/Okla. 31,500 0 0.0% $16.00 $18.00 Dollar Tree I-40 & Garth Brooks Blvd, Yukon Stuart Graham Cato West-Central Totals 3,708,897 307,579 8.3%

13 2007 Year-End Oklahoma City Retail Market Summary Moore-Norman Submarket

Moore is a bedroom community located in the south part of the Oklahoma City metropolitan area. It is bisected by Interstate 35, a major interstate highway that runs from the Mexican border through Dallas north to Minnesota. Moore’s population has grown to 51,000 from its year 2000 population of 45,000. Moore is enjoying a significant increase in retail traffic and is drawing numerous shoppers from outside of its city limits. The fast growing area west of this community has significantly strong demographics, and these Oklahoma City residents are doing lots of shopping in Moore.

New development activity in the south quadrant of Moore in the vicinity of the Wal-Mart Supercenter at south 19th and I-35 continues. The Warren Theatre development located just north of the Wal-Mart is about to open, and the attached Harley Davidson store is under construction. These new additions plus the Lowe’s store have been joined by several pad site developments. The Shoppes at Moore which is anchored by J.C. Penney’s continues to attract significant interest from tenants including Best Buy and Bed Bath and Beyond. This projected 450,000 s.f. center is still in the construction stage and has not been added to

Moore-Norman Submarket Retail Inventory our operating center survey yet. Well over 1.5 million s.f. of retail footage is operating within a one- 8 Year-End 2007 half mile radius of the 19th and I-35 intersection. It has truly become a retail shopping destination 7 GLA SF Freestanding SF that competes with Norman and Oklahoma City for the retail consumer and the all important sales 6 tax dollars that all of our communities desperately need. In addition, there continue to be discussions 5 about further development southwest of the Wal-Mart Supercenter. 4

3

(millions of square feet) (millions of square 2 Norman is a growth market located 17 miles south of Oklahoma City along Interstate 35. Its population 1 continues to grow and is estimated to be over 100,000 and is the home of the University of Oklahoma 0 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 with over 30,000 students. Moore-Norman

West Norman continues to be the strongest area of retail sales for the community. Led by Parkway Plaza, Sooner Mall, Brookhaven Village, plus the first phase of University Town Center which is still under construction (comprising over 1.5 million square feet), this area of the community draws from

Moore-Norman Submarket Retail Vacancy the surrounding area and continues to prosper. 8% Year-End 2007 7% East Norman continues to grow and has attracted several major national tenants and is benefiting from 6% some upgrading of existing centers in this area of the community. A new mixed use center known as 5%

4% East Village with retail and residential is being developed at S.E.12th & Lindsay. There is a CVS plus a

3% four story building made up of one floor of retail and three floors of residential.

2% 1% Phase I of Town Center at University North Park, the multi-phase retail, entertainment, and hotel 0% '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 development on 275 acres located north and east of the I-35 and Robinson interchange, is mostly open. Super Target opened in October of 2006 with sales significantly above projections. While the national slowdown in retail expansions has slowed this development somewhat, there are still well over 300,000 s.f. open with another 400,000 s.f. of stores in various stages of development as part of Phase II. Reports of a life style center with a 2010 or 2011 opening continue to surface. The John Moore-Norman Submarket Retail Absorption Q. Hammons-developed Embassy Suite hotel coupled with a convention center servicing the City of 2007 Year-End 200 Norman will open before the end of 2008. 150

100 Price Edwards & Company surveyed 31 shopping centers totaling 3,137,073 s.f. in the Moore/Norman

50 submarket. Occupancy is a healthy 94.33%. By our estimate, there are presently 36 freestanding

0 retail stores in this submarket with 1,793,626 s.f. of space. The only vacancy is a vacant CVS drug store (thousands of square feet) (thousands of square -50 in Moore.

-100 '99 '00 '01 '02 '03 '04 '05 '06 '07

14 2007 Year-End Oklahoma City Retail Market Summary Moore-Norman Submarket

Center Class Year Built Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenant(s) East Village Shopping Center E 2006 Equity Realty 30,000 19,000 63.3% $15.35 $0.00 Maggie Moos E Lindsey St & 12th Ave SE, Norman Judy Hatfield/Equity Realty Thunderbird Liquor Madison Square D 2008 50,000 $20.00 $0.00 Moore Penlen Plaza D 2005 CBRE/Okla. 30,000 30,000 100.0% $16.00 SW 134th St & S Western Ave, OKC Mark Inman/Brian Donahue/Alania McGlothin Shops @ Moore Power Center C 2007 CBRE/Okla. 384,720 109,169 28.4% $10.00 $25.00 Office Depot I-35 & SE 19th St, Moore Mark Inman JC Penny University North Park B 2006 Sooner Investment 750,000 14,000 1.9% $25.00 $0.00 Super Target I-35 & W Robinson St, Norman Brandy Tice Moore-Norman Construction Totals 1,244,720 172,169 13.8%

Center Class Year Built Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenant(s) Alameda Square D 1984 Equity Realty 85,420 20,447 23.9% $14.00 Ace Hardware E Alameda St & 12th Ave NE, Norman Eric Fleske Dollar Tree Anatole D 1985 Domain Commercial, LLC 64,555 14,028 2170.0% $7.50 Harbor Freight Tools E Alameda St & 12th Ave NE, Norman Micah Alcorn Brookhaven Village C 1985 Price Edwards & Co. 154,272 17,284 11.2% Chico’s W Robinson St & 36th Ave NW, Norman Lee Chancellor Talbots Camden Plaza E 2006 Equity Realty 30,000 1,300 4.3% $16.00 1003-1035 SW 19th, Moore Eric Fleske Campus Corner Shops C 1911/93 Equity Realty 210,000 20,763 9.9% $12.50 $18.00 OU Authentic 301 W Boyd St, Norman Rainey Powell Harrold’s Carriage Plaza E 1983 Gus Gianos Family Partnership 25,500 0 0.0% The Webb 2001 W Main St, Norman Peter Gianos Cayman’s Colonial Estates C Ren. 1988 Equity Commercial Realty 104,051 0 0.0% $10.00 $12.00 Value Foods E Lindsey St & 12th Ave SE, Norman Robert Finley Langston’s Downtown Center C 1965 Retail Investors, Inc. 107,000 0 0.0% $7.50 Mardels 700 W Main St, Norman Perry Trout Moore-Norman East Moore Shopping Center D 1981 Grace Commercial 52,000 3,080 5.9% $10.00 $12.00 Dollar General 406 S Eastern Ave, Moore Mary R. Grace/Larry Emmer Heisman Square D 1999 Equity Realty 93,000 2,250 2.4% $15.00 $15.50 Albertson’s E Alameda St & 12th Ave NE, Norman Eric Fleske/Equity Realty Hollywood Video Hobby Lobby Building D CB Richard Ellis/Okla. 47,000 15,000 31.9% $10.00 $0.00 Wine Store 555 W Main St, Norman Mark Inman Hollywood Center C 1964 Foreman Properties 127,600 0 0.0% Homeland 1600 W Lindsey St, Norman Lynn Foreman Hancock Fabric Malibu Shopping Center E 2006 Gerald Gamble Co. 27,000 12,250 45.4% $9.00 Advance America Cash 824 NW 12th St, Moore Gerald Gamble Merkle Creek D 1985 Equity Realty 32,000 1,265 4.0% $13.00 $14.65 lay It Again Sports 2203 W Main St, Norman Gayla Artman Tan & Tone America Moore Towne Center D 2005 Domain Commercial, LLC 35,000 4,868 13.9% $18.00 $18.00 McAlester’s I-35 & 19th St, Moore Micah Alcorn Mazzios Pizza New City Center C 1963/98 Precor/ruffin Realty 181,894 9,956 5.5% $10.00 $16.00 Family Dollar 605 N Moore Ave, Moore Rick Pritchett Ace Hardware Normandy Creek C 1974 Dillard Group 107,366 14,700 13.7% $9.00 $10.00 Hastings Books 2200 W Main St, Norman Steve Williams/Sandy Taylor Furr’s Cafeteria Park On Main D 1982 Huettner Properties 68,045 0 0.0% $9.00 $15.00 POM Executive Suites W Main St & 36th Ave NW, Norman Debby Busking Moto Photo Parkway Plaza B 1996 Gemni Realty Advisors 375,000 16,848 4.5% $12.00 Barnes & Noble Ed Noble Parkway, Norman Zina Teresa Bed Bath & Beyond Riverwalk D 2006 DJ Development 34,000 10,200 30.0% $16.00 Alfredo’s Restaurant 192713 Service Rd, Moore Lisa Shipman Riverwalk Centre E 2000 Grubb Ellis Levy/Beffort 159,127 2,080 1.3% $16.00 $0.00 Khol’s 2800 S Telephone Rd, Moore Leah Oliver Gordman’s Riverwalk Plaza E 2000 Price Edwards & Co. 26,939 0 0.0% $14.00 Rickey’s Café 2109-2139 Riverwalk Dr, Moore Susan Brinkley, Pat Barnes, Ev Ernst Integris Physical Therapy Robinson Crossing C 1986/89 Brady’s Properties 108,000 1,750 1.6% $12.00 Audio Demision 1300 N Interstate Dr, Norman Ali Ghaniabadi University of Phoenix Silver Leaf D 1985 Sun Lee 88,097 1,500 1.7% SilverLeaf Furniture NE 12th St & N Eastern Ave, Moore Sun Lee Family Dollar Sooner Mall B 1976/88/99 General Growth Properties 503,851 3,135 0.6% Dillard’s, I-35 & W Main St, Norman Steve Hughes/Lynn Palmerton Sears Sooner Shopping Center D 1966 Ultra-Thin 50,000 4,000 8.0% $6.00 Moore Rexal Drugs NW 5th St & N Broadway Ave, Moore Joe Bryant Moore Tag Agency Sooner West Plaza D 1981 Samples Management 64,500 0 0.0% $9.00 $13.00 Wright’s IGA W Main St & 36th Ave NW, Norman Tuesday Morning Stubbeman Village E 1972 Kathi White & Associates 28,451 3,235 11.4% $12.00 Mr. Bill’s W Lindsey St & Elm Ave, Norman Kathi White Ratcliff Bookstore The Main Center D 2005 HEW Marketing, Inc. 106,307 5,600 5.3% $9.00 $9.00 Hobby Lobby W Main St & N Flood Ave, Norman Heather Warrington Rent-A-Center West Port Shopping Center D City Properties 40,898 0 0.0% $8.50 Church’s Chicken 1200 N Santa Fe Ave, Moore Jennifer/Amy Little Ceasears Moore-Norman Totals 3,137,073 177,939 5.7%

15 2007 Year-End Oklahoma City Retail Market Summary Eastern OK County Submarket

Eastern Oklahoma County, which includes Midwest City and Del City as well as Choctaw, Harrah, Spencer, and other small communities, combine a trade area of approximately 65,000. Average household income is over $42,000. The largest employer is Tinker Air Force Base, but there are numerous other employers in this area. Tinker remains Oklahoma City’s largest employer. Additionally, the new maintenance mall (MROTC) located across Douglass to the east of Tinker has opened its first maintenance facility. Construction is being planned for other facilities. In addition, reports indicate that the closed General Motors plant is, hopefully, going to be purchased by the county and Tinker will be able to utilize it. All of these improvements in the Tinker area are being rewarded with excellent, high-paying jobs.

Midwest City and Sooner Investment’s Town Center development is completed and has been added to our survey as an operating center. Super Target, Lowe’s, Kohl’s, J.C. Penney’s and numerous other stores are open. Shopping patterns for this submarket are changing as a result. Several centers and freestanding buildings in other areas of this submarket have lost tenants

Eastern OK County Submarket Retail Inventory and are having to remarket themselves to attract users for the vacant spaces. On the other hand, Town 5 Year-End 2007 Center is attracting shoppers from areas outside of Midwest City, and it will no doubt spur efforts by surrounding municipalities to create new opportunities for sales tax increases which are so important 4 GLA SF Freestanding SF to each of the cities’ budgets. 3

2 Price Edwards & Company surveyed 25 shopping centers with 2,728,758 square feet of inventory.

(millions of square feet) (millions of square Occupancy is 79.37 which is slightly lower than it was at the time of the last survey. The major portion 1 of this vacancy is tied to Heritage Park Mall which is still undergoing a transition and has over 320,000 0 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 s.f. of vacancy. If Heritage Park Mall is taken out of the survey (which might eventually happen if the space is converted to non-retail use), the overall occupancy for this submarket is over 88.5%. The Eastern OKEastern County Uptown Center is going through a substantial renovation, and we have taken if off the operating center survey until it is completed. There are 33 freestanding retailers in operation with over 1,733,644 s.f. of which 160,500 s.f. in five buildings is vacant. This vacancy is primarily centered in the former

Eastern OK County Submarket Retail Vacancy Wal-Mart and Albertson buildings in the area of 7500 East Reno. We have removed from the survey 25% Year-End 2007 the Target building at this location due to it being purchased by a medical center with a conversion to

20% a use other than retail as the most likely scenario.

15%

10%

5%

0% '98 '99 '00 '01 '02 '03 '04 '05 '06 '07

Eastern OK County Submarket Retail Absorption 600 2007 Year-End

500

400

300

200

100

0 (thousands of square feet) (thousands of square -100

-200 '99 '00 '01 '02 '03 '04 '05 '06 '07

16 2007 Year-End Oklahoma City Retail Market Summary Eastern OK County Submarket

Center Class Year Built Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenant(s) Uptown C 1958/72/06 Atkinson Prop. & Invest. 242,000 100,000 41.3% $10.00 $15.00 Dollar General 7430 SE 15th St, MWC Joe Atkinson Michael’s Crafts Eastern OK County Construction Totals 242,000 100,000 41.3%

Center Class Year Built Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenant(s) 23 Post Plaza D 1986 Nancy Brewer 35,000 0 0.0% $7.00 Spencer’s Smokehouse NE 23rd St & N Post Rd, MWC Nancy Brewer Farmer’s Insurance Boulevard Market Place D 1983 Weingarten Realty 35,500 4,490 12.7% $7.70 $9.00 Factory Direct 101 N Douglas Blvd, MWC Daniel Goldware Subway Choctaw Plaza C 1974/84 Levy Beffort 130,765 19,130 14.6% $3.95 $6.95 Super H Discount Foods 14407 NE 23rd St, Choctaw Michael Almaraz Blockbuster Video Decker Center D 1982 Bradys Properties 33,500 11,400 34.0% $6.00 $8.00 Supercut’s 1200 S Air Depot Blvd, MWC Ali Ghaniabadi FedEx Kinko’s Del Crest Shops D 1957/90 Del City Shops 78,150 2,000 2.6% $5.00 $6.00 Ace Hardware SE 15th St & S Sunnylane Rd, Del City Linda Crosby Dollar General Dixon Plaza D 1978/80 Joe Leon 34,900 0 0.0% $8.00 Buy for Less SE 15th St & S Post Rd, MWC Joe Leon Farmer’s Insurance Eastgate Shopping Center D 1965 Interwest Realty Co. 51,052 20,379 39.9% $6.00 Family Dollar 1100 Midwest Blvd, MWC George Huffman Gateway Plaza C 1985 Clinton Greenhaw 100,000 0 0.0% $10.00 $12.00 Chase Bank SE 15th St & S Air Depot Blvd, MWC Charles Greenhaw Hobby Lobby Eastern OK CountyEastern OK Greenhaw D 1960 Law Offices 33,000 0 0.0% $6.00 Dollar General NE 10th St & N Lee Ave, OKC Edward Lee Hartsdel D 1995 Charles Shadid 50,000 0 0.0% $4.00 $5.00 Highlander Laundry SE 44th St & S Bryant Ave, MWC Charles Shadid Beauty Supply Heritage Park Mall B 1978/93 Grubb Ellis/Levy Beffort 590,661 322,616 54.6% $12.00 $8.00 Bath & Body Works E Reno Ave & N Air Depot Blvd, MWC Louis Almarez/Michael Almarez Sears Heritage Plaza D 1987 GBR Properties,Inc. 75,071 39,918 53.2% $7.50 $10.00 Weight Watchers 351 N Air Depot Blvd, MWC Bob Parker Ron’s Hamburger Holiday Square D 1974 Pelfriz Investments 85,000 4,200 4.9% $6.00 $10.00 Furr’s Cafeteria 1100 S Air Depot Blvd, MWC Sheila Hoppis Karen’s Kids North East Shopping Center D Charles Shadid 100,000 40,000 40.0% $3.00 $5.00 Options Unlimited 1124 NE 36th St, OKC Charles Shadid Scoame Street Day Care Park Estates D 1952 Shapard Properties,Inc. 38,000 4,000 10.5% $4.50 Scott Cleaners 36th St & Kelly Ave, OKC Bill Shapard Dollar General Park Plaza D 1993 Charles Shadid 38,268 18,000 47.0% $3.00 $4.00 Diva Beauty Supply 3700 Springlake Dr, OKC Charles Shadid Whirlwind Cleaners Sooner Market Place D 1995 Charles Shadid 63,013 12,000 19.0% $5.00 $7.00 Chelino’s E Reno Ave & S Sooner Rd, Del City Charles Shadid Speed Mart Spencer’s Center D Ren. 2000 Charles Shadid 40,000 10,000 25.0% $3.00 $5.00 Conoco NE 23rd St & N Spencer Rd, Spencer Charles Shadid Discount Beauty Supply Sunnylane Plaza D 1979 Hayes Brokerage 86,078 0 0.0% $6.00 Radio Shack SE 44th St & S Sunnylane Rd, Del City Don Hayes Advance America Tan & Tone America Center E 2005 Price Edwards & Co. 25,300 3,000 11.9% $12.00 $15.00 Tan & Tone America 1900 S Air Depot Blvd, MWC Susan Brinkley The Village D 1968 Micheal Biddinger Real Estate 32,000 3,600 11.3% $7.25 Rent-A-Center SE 29th St & S Vicki Ave, Del City Casey Wyatt Town & Country C 1966/89 Weingarten Realty 138,000 9,636 7.0% $10.00 $12.00 Office Depot E Reno Ave & N Air Depot Blvd, MWC Blane O’Banion Big Lots Town Center Midwest City B 2005 Sooner Investment 750,000 30,000 4.0% $18.00 $22.00 Target SE 29th St, MWC Brandy Tice Lowe’s Home Improvement Village Oak E 1981 Bradys Properties 27,500 1,500 5.5% $8.00 Oklahoma Blood Institute 1000 S Douglas Blvd, MWC Ali Ghaniabadi Lupe’s Resturant Westminster Shopping Center D 1963 V. C. Davidson 58,000 5,000 8.6% $4.00 Angle’s Furniture NE 23rd St & N Westminster Ave, Nicoma Park Davidson K & B Surplus Eastern OK County Totals 2,728,758 562,926 20.6%

17 Oklahoma City Year-End 2007 Retail Market Sales Summary

Price Edwards & Company has identified 13 sales of retail properties in excess of 25,000 s.f. totaling $231,012,495. These sales comprised 2,336,461 s.f. so the average sales price per s.f. was $98.17. These totals compare favorably to the dollar value of 2006 sales of over $158 million. There were more sales in 2006 as 24 separate transactions, closed. The highest per s.f. price was $277.74 for the recently renovated Memorial Square Shopping Center located at the northeast corner of Pennsylvania and the Kilpatrick Turnpike. At the other end of the spectrum, there were several centers in the range of $21 per s.f. to $51 per s.f. Reported cap rates have ranged between 7.5% and 11% depending upon the potential for upside perceived by the buyer. The properties that sold have ranged between 35,000 s.f. and 950,362 s.f.

As was the case during the first half of the year, most of the buyers have come to Oklahoma City from other parts of the country. We know that several reits, large funds, and TIC groups have been among the companies purchasing or trying to purchase retail properties.

There are still properties in our market that can be bought. As has been well publicized, the financing parameters for commercial mortgages have tightened somewhat, but a well capitalized acquisition can still receive very attractive mortgage terms from not only local, but institutional lenders as well. Price Edwards & Company’s sales representatives are very optimistic about the balance of 2007 and 2008.

Price Edwards & Company • 210 Park Avenue, Suite 1000, Oklahoma City, OK 73102 • P (405) 843-7474 • F (405) 236-1849 www.priceedwards.com