OklahomaOklahoma CityCity Office Market Summary Year End 2004 OklahomaOklahoOklahomama CityCCityity Office Market Summary

Contents During 2004 the Oklahoma City offi ce market continued to rebound and actually showed marked improvement in key suburban submarkets. Overall, Offi ce Market Summary ...... 2-3 the market’s vacancy rate dropped from 21.7% to 19.9%. That would be Offi ce Submarket Map ...... 3 considered a good year in any year, but given the slowly improving, yet still Central Business District ...... 4-5 unsettled national economy that was negatively affected by both an ongoing Northwest ...... 6-9 war and a presidential election, 2004 would have to be considered a very North ...... 10-12 good year. Midtown ...... 13 West ...... 14-15 Although the Central Business District’s vacancy increased from 30.6% to Suburban Analysis ...... 15 31.7%, the suburban markets fared much better, particularly in the higher- end properties. The overall suburban vacancy rate fell from 16.5% to 12.9% and Class A suburban space experienced a dramatic 14-point decrease from 23.6% to 9.7%. In just the past two years, the Class A suburban vacancy rate has fallen 25 points from its recent high of 34.6% at the end of 2002. Major gains were made at virtually every suburban Class A building. Waterford absorbed approximately 47,000 square feet of vacancy, Quails Springs Parkway Plaza absorbed approximately 60,000 square feet and Hertz Financial Center absorbed approximately 91,000 square feet. Of course, Hertz largely benefited from Dell Computer’s temporary lease of approximately 60,000 square feet while their permanent facility is constructed. Still, this progress is signifi cant.

Just like last year, this improvement in the Class A sector of the outlying submarkets is really the story for 2004. The Class A sector has historically driven the rest of the market. As Class A occupancies increase, so do the rental rates of not only the Class A buildings, but other market classifi cations as well. Quoted Class A suburban rates increased an average of $1 per square foot during 2004. Actual rates, which are much harder to track, The information contained herein has been obtained from reasonably reliable sources. Price Edwards & probably increased as much as $2 per square foot as landlord’s reduced the Company makes no guarantee, either express or implied, as to the accuracy of such information. All amount of rental concessions granted to tenants. With the increase in Class data contained herein is subject to errors, omissions and changes. Reproduction in whole or in part, without A suburban occupancies and rental rates, Class B and C offi ce users should prior written consent is prohibited. also expect to see marked increases in quoted rental rates for 2005, as the high tide raises all boats. 2 Oklahoma City Offi ce Submarket Map

The Central Business District held fairly steady during 2004. The approximate one point increase in vacancy was felt across the board in each building classifi cation. 2005 should be a better year for the downtown market as the parking situation begins to improve with the completion of Phase I of the expansion of the Galleria parking lot and the addition of the new county parking facility. Parking will always be a critical issue for CBD tenants and landlords. Hopefully, the additional spaces coming on line in 2005 and 2006 will entice local tenants to consider the CBD as a more viable alternative. Most CBD buildings that either have on-site parking or have negotiated long-term parking arrangements for the benefi t of their tenants, have actually faired rather well and should continue to do so. It should also be noted that as in past years, more than 62% of the CBD’s available space lies within its older, less functional, Class C buildings. The Class A vacancy rate is actually only 16.9% and the Class B vacancy rate is 20.2%.

2005 should prove to be another positive year for the local office market. The national economy is experiencing a steady recovery and leasing activity is defi nitely accelerating. Existing tenants are expanding more than contracting and more new companies are opening offi ces in Oklahoma City. It should also be noted that no new construction completions are scheduled for 2005. A static inventory of available buildings will positively affect the market’s ability to absorb available space. 3 OklahomaOklahoma CityCity Central Business District

2004 OKLAHOMA CITY CENTRAL BUSINESS DISTRICT REVIEW • Aggregate vacancy rates increased from 30.6% to 31.7%. • Class A vacancy increased from 15.5% to 16.9%. • Class B vacancy increased from 18.3% to 20.2% • Class C vacancy increased from 58.6% to 60.7%. • Aggregate rental rates increased from $12.31 to $12.77 per SF. • Class A rates increased from $15.50 to $15.93 per SF. • Class B rates increased from$11.96 per SF to $12.06 per SF. • Class C rates increased from $9.71 per SF to $10.44 per SF. • The Oklahoma City Central Business District had negative absorption of 56,000 square feet during 2004.

2005 OKLAHOMA CITY CENTRAL BUSINESS DISTRICT FORECAST • Vacancy rates may should remain near current levels throughout 2005. • Rental rates will also remain near current levels.

4 Central Business District RENTABLE SQ. FT. PERCENT COMMON BUILDING YEAR BUILT FLOORS SQ. FT. VACANT VACANT RATE AREA FACTOR

100 PARK AVENUE BUILDING 1923/1964 12 99,752 3,400 6% $10.50 12% 100 Park Ave. 2,500 (S)

101 PARK AVENUE BUILDING 1936/1974 14 189,090 99,498 53% $11.50 14% 101 Park Ave.

BANCFIRST BUILDING 1921/1970 11 105,840 0 0% $12.50 12.50% 101 N. Broadway

BANK OF OKLAHOMA PLAZA 1972 16 233,808 30,361 13% $13.50 20% 201 Robert S. Kerr

BANK ONE CENTER 1971 36 514,642 20,662 4% $12.50 15% 100 N. Broadway

CITY PLACE 1931/1985 33 292,304 116,971 40% $10.00 14% 204 N. Robinson

COLCORD BUILDING 1909 14 109,729 35,473 32% $10.00 8% 15 N. Robinson

CORPORATE TOWER 1980 14 277,849 101,396 36% $14.00 17% 101 N. Robinson

COURT PLAZA 1923/1979 10 78,381 31,930 41% $9.00 14% 228 Robert S. Kerr

DOWELL CENTER 1926 20 190,000 175,000 92% $9.50 15% 134 Robert S. Kerr

FIRST NATIONAL CENTER 1931`/1974 28 975,025 663,365 68% $11.00 16.50% 120 N. Robinson

HIGHTOWER BUILDING 1929 10 107,152 28,655 27% $12.00 15% 105 N. Hudson

LEADERSHIP SQUARE 1984 21N/16S 735,514 100,695 15% $16.00 19% 211 N. Robinson 11,777 (S)

MID-AMERICA TOWER 1981 19 307,388 0 0% $14.00 20% 20 N. Broadway

OKLAHOMA TOWER 1982 31 568,960 149,569 27% $16.00 20% 210 Park Ave. 5,254 (S)

ONE NORTH HUDSON 1931/1981 11 73,000 5,428 7% $10.00 12% 401 W. Sheridan

PARK HARVEY BUILDING 1957 17 173,000 95,820 55% $8.50 10% 200 N. Harvey

ROBINSON PLAZA 1992 10 183,000 0 0% $11.00 0% 50 N. Robinson

ROBINSON RENAISSANCE 1927/1987 12 174,840 43,477 25% $11.50 25% 119 N. Robinson

SONIC BUILDING 2003 4 100,654 21,543 21% $21.00 8.57% 300 Johnny bench Drive

SUBMARKET TOTAL 5,489,928 1,742,774 31.7% $12.77

5 OklahomaOklahoma CityCity Northwest Submarket

2004 NORTHWEST OKLAHOMA CITY SUBMARKET REVIEW • Aggregate vacancy rates decreased from 17.4% to 13.9%. • Class A vacancy decreased from 24.4% to 7.3%. • Class B vacancy decreased from 16.6% to 13.7%. • Class C vacancy increased from 16.6% to 22.1%. • Aggregate rental rates increased from $14.23 to $14.50 per SF. • Class A rental rates increased from $17.76 to $18.76 per SF. • Class B rental rates decreased from $13.90 to 13.87 per SF. • Class C rental rates increased from $11.16 to $11.34 per SF. • The Northwest Oklahoma City Submarket experienced absorption of 193,000 SF during 2004.

2005 NORTHWEST OKLAHOMA CITY SUBMARKET FORECAST • Vacancy rates should increase as this submarket continues to improve. • Quoted rates will rise due to a small amount of available Class A Space. Class B rates could move upward as much as $1 per SF in 2005.

6 Northwest Submarket RENTABLE SQ. FT. PERCENT COMMON BUILDING YEAR BUILT FLOORS SQ. FT. VACANT VACANT RATE AREA FACTOR

4100 PERIMETER CENTER 1982 3 47,317 0 0% $11.00 15% 4100 Perimeter Center Dr.

4101 PERIMETER CENTER 1982 3 47,317 0 0% $11.00 15% 4101 Perimeter Center Dr.

4141 NORTHWEST EXPRESSWAY 1982 3 46,464 1,800 4% $11.00 15% 4141 Northwest Expressway

4200 PERIMETER CENTER 1981 2 61,327 14,797 24% $11.00 15% 4200 Perimeter Center Dr.

5100 BROOKLINE 1974 10 107,496 11,502 11% $12.50 15% 5100 Brookline

AMERICAN CANCER SOCIETY 2001 1 45,000 0 0% $16.50 0% 8400 Silver Crossing

ATRIUM TOWERS 1980 6 156,106 34,327 22% $12.50 16% 3501-3503 N.W. 63rd

AVAYA BUILDING 1998 1 57,000 1,966 3% $15.00 0% 14400 Hertz Quail Springs Parkway

BRADLEY SQUARE 1984 1 30,000 1,800 6% $12.50 10% 2932 N.W. 122nd

BROOKLINE OFFICES 1971 1 40,920 13,228 32% $10.00 0% 6051 N. Brookline

CENTER 3000 1972 3 100,942 32,914 33% $9.00 12% 3000 United Founders Blvd.

CHASE PARK 1981 2 30,281 3,864 13% $12.00 15% 4323 N.W. 63rd

COMMERCE CENTER SOUTH 1982 3 65,857 0 0% $14.00 11% 9520 N. May

COPPERTREE CENTRE 1982 3 26,928 0 0% $14.00 10% 3727 N.W. 63rd

CROSS ROCK OFFICE PLAZA-I 1984 3 52,090 0 0% $18.00 0% 13801 Continental Dr.

CROSS ROCK OFFICE PLAZA-II 1992 2 52,000 52,000 100% $16.00 10% 3600 NW. 128th

DOBSON COMMUNICATIONS 2001 3 144,420 0 0% $22.50 16% 14101-14201 Wireless Way

ENTERPRISE PLAZA 1981 3 92,542 14,632 16% $13.00 14% 5600 N. May

FBI BUILDING 1999 1 73,380 0 0% $17.00 0% 3301 W. Memorial

FIFTY-SIX EXPRESSWAY PLACE 1982 3 54,592 14,127 26% $11.50 11% 5601 N.W. 72nd

FIVE CORPORATE PLAZA 1980 3 49,486 0 0% $13.00 15% 3625 N.W. 56th

FOUNDERS TOWER 1964 20 178,532 84,552 47% $12.00 13% 5900 Mosteller Dr.

GAILLARDIA 2000 3 71,867 0 0% $21.50 15% 4801 Gaillardia Parkway

7 Northwest Submarket (continued) RENTABLE SQ. FT. PERCENT COMMON BUILDING YEAR BUILT FLOORS SQ. FT. VACANT VACANT RATE AREA FACTOR

GRAND CENTRE 1982 5 101,217 18,751 19% $15.50 15% 5400 N.W. Grand Blvd.

HARTFORD INSURANCE 1999 1 100,000 0 0% $16.00 0% 7800 N.W. 85th Terrace

HERTZ FINANCIAL CENTER 1983 10 276,246 0 0% $18.50 15% 3817 Northwest Expressway

JAMESTOWN OFFICE PARK 1972/1979 2 78,283 200 0% $12.50 10% 3037 N.W 63rd

LAKEPARK TOWER 1983 6 103,084 15,788 15% $13.50 13% 6525 N. Meridian

LAKEPOINTE TOWERS 1981 6 177,746 52,777 30% $13.50 10% 4005-4013 Northwest Expressway

LAKEPOINTE WEST 1982 6 85,286 20,233 24% $12.00 12.2% 4045 N.W. 64th

LAKESHORE TOWER 1982 3 29,761 1,659 6% $11.00 15% 4301 N.W. 63rd

LANDMARK TOWERS 1969/1972 10 290,000 34,723 12% $11.50 12% 3535-3545-3555 NW 58th

MARATHON OIL BUILDING 1986 2 100,941 36,337 36% $12.50 12.5% 7301 Northwest Expressway

MUTUAL ASSURANCE BUILDING 1999 2 40,000 3,147 8% $18.00 15% 3121 Quail Springs Parkway

NORTH SHORE OFFICE PLAZA 2001 5 55,570 0 0% $20.50 15% 10900 Hefner Drive

NORTHWEST OFFICE CENTER 1973 2 85,833 20,354 24% $12.00 13% 4334 Northwest Expressway

OIL CENTER 1973/1978 13 249,654 39,634 20% $13.50 13% 2601 Northwest Expressway 9,103 (S)

ONE CORPORATE PLAZA 1979 1 63,011 3,088 5% $14.00 15% 3525 NW. 56th

PORTLAND PLAZA 1969 3 35,425 2,392 7% $11.00 14% 5700 N. Portland

QUAIL CREEK COMMERCE CENTER 1998 1 128,500 0 0% $15.50 0% 3201 Quail Springs Parkway

QUAIL CREEK NORTH 1973 2 34,780 750 2% $10.00 15% 11032 Quail Creek Rd.

QUAIL SPRINGS PARKWAY PLAZA I & II 1986 6 321,312 14,313 4% $18.50 14% 14000 Quail Springs Parkway

QUAIL SPRINGS PROFESSIONAL BUILDING 2002 2 25,420 0 0% $17.50 16% 14313 N. May Avenue

QUAILRIDGE TOWER 1975 4 49,000 15,835 32% $12.00 14% 11212 N. May

REES PLAZA AT EAST WHARF 2003 3 42,000 2,125 5% $19.00 15.3% 9211 Lake Hefner Parkway

ROCKWELL OFFICE CENTER 1982 2 30,000 6,231 21% $12.00 13% 8621 N. Rockwell

8 Northwest Submarket (continued) RENTABLE SQ. FT. PERCENT COMMON BUILDING YEAR BUILT FLOORS SQ. FT. VACANT VACANT RATE AREA FACTOR

SIGNATURE PLACE 1982 7 101,146 13,973 14% $12.00 13% 5909 Northwest Expressway

SPRINT PCS BUILDING 1999 1 90,000 0 0% $18.00 0% 8525 Silver Crossing

ST. MARTINS BUILDING 1990 2 59,712 0 0% $14.50 13% 9020 N. May

SUMMIT EXECUTIVE BUILDING 1975 5 50,000 8,000 16% $10.50 10% 5929 N. May

THE EXPRESSWAYS 1974 6 65,737 10,000 15% $12.00 13% 2525 Northwest Expressway

THREE CORPORATE PLAZA 1980 3 49,920 6,216 12% $14.00 10% 3613 NW. 56th

TWO CORPORATE PLAZA 1982 3 85,551 0 0% $14.00 14.5% 5555 NW. Grand Blvd.

UNION PLAZA 1982 18 247,379 68,367 28% $16.00 14% 3030 Northwest Expressway

WILLIAMS SONOMA 1998 1 36,000 0 0% $16.00 0% 7720 NW. 4th St.

SUBMARKET TOTAL 4,920,378 685,505 13.9% $14.50

9 OklahomaOklahoma CityCity North Submarket

2004 NORTH OKLAHOMA CITY SUBMARKET REVIEW • Aggregate vacancy rates decreased from 14.3% to 12.4%. • Class A vacancy decreased from 22.1% to 14.2%. • Class B vacancy remained flat at 10.6%. • Class C vacancy decreased from 20.3% to 17.2%. • Aggregate rental rates increased from $13.74 to $14.33 per SF. • Class A rental rates increased from $17.25 to $18.25 per SF. • Class B rental rates increased from $13.63 to $14.07 per SF. • Class C rental rates increased from $10.35 to $10.96 per SF. • The Oklahoma City North Submarket absorbed 41,000 square feet during 2004.

2005 NORTH OKLAHOMA CITY SUBMARKET FORECAST • Vacancy rates should continue to drop as this market continues to improve. • Rental rates will show a slight increase particularly in the Class B segment of this submarket.

10 North Submarket RENTABLE SQ. FT. PERCENT COMMON BUILDING YEAR BUILT FLOORS SQ. FT. VACANT VACANT RATE AREA FACTOR

1001 WILSHIRE 2003 4 43,316 20,367 47% $19.50 13% 1001 West Wilshire

50 PENN PLACE 1973 16 175,619 34,807 20% $14.50 10% 5100 N. Pennsylvania

5101 CIRCLE BUILDING 1982 6 75,216 2,306 3% $14.00 14% 5101 N. Classen Blvd.

7 & 9 BROADWAY EXECUTIVE PARK 1979 1 29,201 9,053 31% $13.00 0% NW. 63rd and Broadway

BANK ONE BUILDING 1981 4 41,943 0 0% $12.00 15% 6303 N. Portland

BROADWAY PLAZA 1982 3 38,726 4,592 12% $13.50 13% 16 N.W. 63rd

BROADWAY SIXTY-EIGHT 1979 3 40,000 9,270 23% $13.50 14% 6801 N. Broadway

CENTRAL PARK ONE 1982 6 113,134 16,997 15% $14.50 14% 525 Central Park Dr.

CENTRAL PARK TWO 1984 6 124,463 13,119 11% $14.50 14% 515 Central Park Dr.

COLUMBUS SQUARE 1982 3 36,559 0 0% $14.50 10% 1001 N.W. 63rd

FIVE NORTH BROADWAY 1972 3 44,805 0 0% $16.00 15% 6601 N. Broadway

GLENBROOK CENTRE EAST 1970 3 63,254 6,677 11% $13.00 14% 1120 N.W. 63rd

GLENBROOK CENTRE WEST 1972 5 47,500 6,200 13% $12.00 10% 1140 N.W. 63rd

HARVEY PARKWAY 1982 6 98,807 14,632 15% $13.00 14% 301 N.W. 63rd

LINCOLN PLAZA OFFICE PARK 1970 2 238,032 27,148 11% $10.00 10% 4545 Lincoln Blvd.

MIDFIRST PLAZA 1982 6 95,043 0 0% $13.00 12% 501 Northwest Expressway

NICHOLS HILLS EXECUTIVE CENTER 1981 2 53,996 2,460 5% $14.00 14% 1000 W. Wilshire

NORTHGATE 1974 2 48,704 13,000 27% $10.00 0% 4010-4020-4024-4030 Lincoln Blvd.

ONE BENHAM PLACE 1983 8 152,959 13,803 9% $16.50 13% 9400 N. Broadway

ONE BROADWAY CENTER 1980 3 34,984 0 0% $13.00 9% 100 N.W. 63rd

ONE BROADWAY EXECUTIVE PARK 1979 3 58,832 1,270 2% $14.00 12.32% 201 NW. 63rd

ONE GRAND PARK 1982 6 100,694 20,364 20% $13.00 14% 777 NW. Grand Blvd.

ONE WESTERN PLAZA 1972 2 53,800 11,579 22% $12.00 13% 5500 N. Western 11 North Submarket (continued) RENTABLE SQ. FT. PERCENT COMMON BUILDING YEAR BUILT FLOORS SQ. FT. VACANT VACANT RATE AREA FACTOR

PARAGON BUILDING 1981 5 110,791 15,600 14% $15.00 15% 5801 N. Broadway

PAVILION BUILDING 1974 3 39,895 2,929 7% $11.00 15% 6701 N. Broadway

PENN PARK 1973 2 78,643 26,822 34% $11.50 13% 5001-5005-5009-5015 N. Penn

REGENCY CENTER 1982 5 67,031 0 0% $15.00 15% 701 NW. 63rd

REGISTRY 1980 2 93,493 22,790 24% $12.00 15% 2200 NW. 50th

RICHMOND SQUARE 1982 2 27,241 10,521 39% $12.00 12% 4900 Richmond Square

SANTA FE NORTH 1981 4 44,000 0 0% $13.50 11% 6 NE. 63rd

SIX BROADWAY EXECUTIVE PARK 1981 3 50,347 0 0% $14.00 12% 6600 N. Harvey

THE TOWER 1984 22 297,573 62,257 21% $18.50 17% 1601 Northwest Expressway

THREE BROADWAY EXECUTIVE PARK 1977 3 45,256 1,791 4% $14.00 11.72% 6501 N. Broadway

THREE GRAND PARK 1985 6 100,813 0 0% $14.00 13% 999 NW. Grand Blvd.

TWO BROADWAY EXECUTIVE PARK 1980 3 52,205 3,832 7% $14.00 11.42% 205 NW. 63rd

TWO GRAND PARK 1982 4 97,102 0 0% $13.00 17% 5701 N. Shartel

WATERFORD A 1983 4 147,000 3,600 2% $18.50 16% 6301 Waterford Blvd.

WATERFORD B 1983 2 35,468 0 0% $17.50 16% 6303 Waterford Blvd.

WATERFORD C 1984 2 81,575 3,704 5% $17.50 16% 6305 Waterford Blvd.

WATERFORD D 1984 2 34,087 6,151 44% $17.50 16% 6307 Waterford Blvd. 9000 (S)

SUBMARKET TOTAL 3,212,107 396,641 12.4% $14.33

12 2004 MIDTOWN OKLAHOMA OklahomaOklahoma CityCity CITY SUBMARKET REVIEW Midtown Submarket • Aggregate vacancy rates increased from 4.23% to 10.1%. • Class B vacancy rates increased from 6.0% to 11.6%. • Class C vacancy rates decreased to 4.1%. • Aggregate rental rates increased to $11.45 per SF. • Class B rental rates average $11.66. • Class C rental rates average $10.57. • Due to Citizens Tower’s conversion to residential apartments, it was removed from this report in 2004. • The Midtown Submarket expe- rienced negative absorption of 22,000 SF during 2004 after adjusting for the removal of Citizens Tower. 2005 MIDTOWN OKLAHOMA CITY SUBMARKET FORECAST • Vacancy rates will remain low as more users recognize Midtown as the most economical submarket. • Rental rates will remain at or near current levels.

RENTABLE SQ. FT. PERCENT COMMON BUILDING YEAR BUILT FLOORS SQ. FT. VACANT VACANT RATE AREA FACTOR

2000 CLASSEN CENTER 1966/1976 6 318,321 33,249 10% $12.50 10% 2000 Classen Blvd.

3700 CLASSEN BUILDING 1980 2 52,800 14,500 27% $10.50 13% 3700 Classen Blvd.

3800 CLASSEN BUILDING 1982 3 52,800 5,500 10% $10.50 13% 3800 Classen Blvd.

4801 CLASSEN BUILDING 1974 2 33,151 2,072 6% $9.50 0% 4801 Classen Blvd.

CAMERON BUILDING 1955/1957 5 81,493 2,580 3% $11.00 10% 2901 Classen Blvd.

SANTA FE BUILDING 1954/1982 4 55,203 2,128 4% $9.00 10% 3814 N. Santa Fe Ave.

SUBMARKET TOTAL 593,768 60,029 10.1% $11.45

13 OklahomaOklahoma CityCity West Submarket

2004 WEST OKLAHOMA CITY SUBMARKET REVIEW • Aggregate vacancy rates increased from 10.5% to 10.9%. • Class B vacancy totals decreased from 9.5% to 9.2%. • Class C vacancy totals increased from 12.7% to 14.7%. • Aggregate rental rates increased from $11.49 to $11.58 per SF. • Class B rental rates remained at $11.91 per SF. • Class C rental rates increased from $10.54 per SF to $10.84 per SF. • The West Oklahoma City Office Market experienced negative absorption of 2,500 SF during 2004.

2005 WEST OKLAHOMA CITY SUBMARKET FORECAST • Vacancy rates will remain low due to this submarket’s position as a lower- cost alternative. • Rental rates in the Oklahoma City West Submarket will stay near current levels.

14 West Submarket RENTABLE SQ. FT. PERCENT COMMON BUILDING YEAR BUILT FLOORS SQ. FT. VACANT VACANT RATE AREA FACTOR

300 MERIDIAN PLACE 1982 2 77,559 1,437 2% $11.00 11% 300 N. Meridian

BANK 2 TOWER 1975 7 58,598 10,468 18% $12.00 11% 909 S. Meridian

CORPORATE WEST ONE 1980 3 38,031 19,724 52% $10.25 10% 5208 W. Reno

CORPORATE WEST TWO 1983 3 39,000 0 0% $9.00 8% 309 S. Ann Arbor

METRO OFFICE PARK 1981 3 60,750 17,000 28% $9.50 0% 4300 Highline Blvd.

SOVEREIGN OFFICE PARK 1983 1 42,260 8,000 19% $10.00 0% 1300 Sovereign Row

THE PARKWAY 1982 6 96,960 7,469 8% $13.00 15% 1300 S. Meridian

TINKER FEDERAL CREDIT UNION 1986 2 69,229 0 0% $12.00 12% 4140 West I-40

WESTPARK OFFICE CENTER 1986 1 58,786 0 0% $15.00 0% 715 Metropolitan

WILL ROGERS OFFICE PARK 1 1984 1 54,170 5,657 10% $12.00 16% 4400 Will Rogers Parkway

WILL ROGERS OFFICE PARK 2 1985 1 46,748 0 0% $11.00 10% 4350 Will Rogers Parkway

SUBMARKET TOTAL 642,091 69,755 10.9% $11.58

OklahomaOklahoma CityCity 2004 SUBURBAN OKLAHOMA CITY OFFICE MARKET REVIEW Suburban Submarket • Aggregate vacancy rates decreased from 16.5% to 12.9%. • Class A vacancy decreased from 23.6% to 9.7%. • Class B vacancy decreased from 13.1% to 12.1%. • Class C vacancy decreased from 20.1% to 18.8%. • Aggregate rental rates increased from $13.66 to $14.05 per SF. • Class A rental rates increased from $17.58 to $18.59 per SF. • Class B rental rates increased from $13.47 to $13.61 per SF. • Class C rental rates increased from $10.78 to $11.13 per SF. • Suburban Oklahoma City experienced absorption of 210,000 SF during 2004.

2005 SUBURBAN OKLAHOMA CITY OFFICE MARKET FORECAST • Suburban rental rates will continue to climb. • Suburban vacancy rates will decrease particularly in Class B projects. • Class A space vacancies should also continue to decline.

Suburban Oklahoma City Market Total 9,368,344 1,211,930 12.9% $14.05

Oklahoma City Market Grand Total 14,858,272 2,954,704 19.9% $13.57 15 OklahomaOklahoma CityCity 2004 Office Market Sales Summary

The Oklahoma City office market in 2004 experienced its highest level of investment activity since 1998. A total of 14 office properties changed hands, within a broad range of pricing. The Triad Building, on May Avenue just north of Memorial Road, recorded a price of just over $154 per square foot. This represents a new high for the Oklahoma City office market, eclipsing the previous high of $120 per square foot set by the Gaillardia Office Building sale in December 2003.

The 515,000 square foot Bank One Tower, sold to out-of-town investor James Cotter for just under $28 million. This was his second major office investment in Oklahoma City in the last two years, and a major vote of confidence in the long term viability of downtown’s reemergence. Bank One Tower One other notable transaction was the sale of 50 Penn Place to Dallas based Rainier Capital for almost $20 million. This transaction represents the first major “TIC” buyer, or tenants-in-common, reflecting the new tax law for 1031 tax deferred exchange investors. Major markets across the country have been inundated with these buyers who have been bidding up prices to record levels, and therefore accepting investment yields well below historical norms for this asset class. It is expected the investment activity by these types of buyers will increase in 2005. For the first time in many years, an office building was converted to an alternative use. The 500 Main Plaza building in Downtown was acquired by local developer Dick Tannenbaum in 2003. In 2004 the successful conversion to high end apartments was completed. This same approach is intended for Citizens Tower at 23rd & Classen. Other office properties, particularly in the Downtown and Bricktown areas, continue to be evaluated for residential conversion. This would represent a healthy process for the office market by removing older, functionally obsolescent assets not able to compete for tenants, but which currently add to the overall vacancy calculations.

It is expected the office market for well located, well maintained properties will continue to improve in 2005, and thus the interest of buyers from both local and out of state investors will accelerate. Given Oklahoma City’s exceptionally low cost of doing business, relative market stability, aggressive economic development activities, and continued historically low interest rates, the acquisition of quality assets should yield competitive returns for those investors looking for current returns and reasonable asset appreciation. 50 Penn Place

MEMBER 210 Park Avenue • Suite 1000 • Oklahoma City, Oklahoma 73102 • (405) 843-7474 • www.priceedwards.com Dallas Regional Office • 5952 Royal Lane • Suite 120 • Dallas, Texas 75230 • (214) 922-9003