Oklahoma City 2012 Mid–Year Market Summary TABLE OF CONTENTS

Retail Market Summary 1-2

Questions/Issues of Interest 1-2

Sales Summary 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

Special Report: Allison Barta Bailey 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 2012 Mid–Year Retail Market Summary

The Retail Market

After several periods of improvement, the name a few. Equally exciting are the new OKC TOTAL RETAIL MARKET INVENTORY vacancy for the first half of 2012 ticked up ever concepts being introduced by some existing 50 so slightly, to 9.9 percent from 9.8 percent tenants. Mathis Brothers is rolling out their GLA SF Freestanding SF at year-end. There remains a lot of positive Sleep Center concept, Buy for Less opened 40 news: national tenants are becoming more their Uptown Grocer in Edmond, and the new 30 active; a number of new tenants are looking Crest Market at 104th and south May is an for space in our market, newer centers are upgrade from the traditional Crest Store. 20 routinely full, a number of additions to existing (millions of square feet) (millions of square centers are underway, and developers are In addition, several existing grocery retailers 10 dusting off plans for new projects. So, why are in the process of adding a number of new 0 the lack of improvement in the numbers? A locations, including Sam’s Club, , Save- 2008 2009 2010 2011 2012 number of the larger vacancies have already A-Lot, and Neighborhood Market. been absorbed, leaving less room for big OKC TOTAL RETAIL MARKET VACANCY box gains. But, the primary reason for the What new retailers are coming? Several 15% increase is a slight softening in the local tenants are on their way. Dick’s Sporting tenant market. The local tenant market is Goods has four stores under construction: 12% always more volatile and many have been Fritts Farm, Westgate Marketplace, Midwest 9% stretched over the last three years in a very City Town Center, and Shops at Quail Springs price competitive retail environment. Allison on north Pennsylvania. Outlet Shoppes of 6% Barta Bailey refers to some of these pressures Oklahoma is adding 28,000 square feet of and some possible ways out in her article on space and bringing Columbia Sports, Ann 3% the back cover. Taylor LOFT, Waterford, Kenneth Cole, and 0% Lucky Brand among others. LA Fitness has 2008 2009 2010 2011 2012 Despite our concerns about this sector of inked a couple of deals and plans to open , we believe it is a pause and the four or five stores. Soma is about to open OKC TOTAL RETAIL MARKET ABSORPTION overall market will continue to improve over at Springcreek. Other tenants are close to 0.2 the rest of the year. The positives significantly finalizing deals, including Aspen Dental, Home 0.1 outweigh the negatives as reflected in the Goods, Nordstrom Rack. 0.0 performance of most submarkets. Four of -0.1 -0.2 the submarkets, North, West Central, South Who might Come? There are a number of -0.3 & Eastern Oklahoma County actually saw a tenants who have looked in our market and -0.4 small improvement in occupancies. Moore/ may or may not come depending on whether -0.5 (millions of square feet) (millions of square Norman had a modest decline. The most or not they can find the right location and the -0.6 significant negative changes occurred in right co-tenancy. The highest profile of this -0.7 -0.8 Edmond and Northwest; we’ll review those group is ; they’ve hired local brokers 2008 2009 2010 2011 2012 submarkets in more detail later in this report. and are actively seeking locations. Costco has done this previously and not pulled the trigger but seem more serious this time. We’ll before we see most of them. Having said that, Questions/Issues of Interest see. Others include the Container Store, we firmly believe that Oklahoma City could Trader Joe’s, Lululemon, Fresh Market and support a more upscale shopping center; we What new retailers and concepts are Von Mauer Department Store. have the incomes equal to or greater than here? A testament to the good things many of our competitive cities, our challenge going on in our market is the number of new Who probably isn’t coming anytime being that our higher income households tend tenants, including Anthropologie, Whole soon? Let’s put Ikea at the top of this list. to be scattered throughout the city. It will take Foods, Sunflower Market (recently bought Crate & Barrel, Lifetime Fitness, Nordstrom, a developer and retailers who understand by Sprouts), the Meat House, Monarch and pretty much any tenant from Italy or that we’ll drive further and spend more than Dental, Gold’s Gym, Natural Grocers, Nothing France. Oklahoma City’s problem attracting their typical formulas suggest. If Wichita and Bundt Cakes, Ideal Image, Torrid and lots these higher end tenants comes down to Little Rock have lifestyle centers, why not us? of restaurants – Smashburger, Freebirds, demographics; we do not have the incomes Genghis Grill, Chuy’s, 5 Guys Burgers – to or density they require. So it will be a while

1 square foot expansion of the Outlet Shoppes It will be interesting to follow the development of Oklahoma is underway along with some of these strategies and their effect on sales. restaurant outparcels. Outlook for 2012 and Beyond – The We are getting closer to new development. market will continue to improve with the An announcement is expected soon on a addition of new retailers and the expansion large tenant/tenants to kick off the Shoppes of existing retailers as noted above. We at Fox Lake at 15th and I-35 in Edmond. best foresee the announcement of two or three guess, a new Sam’s Club. The Covell & I-35 new developments in the near term. The project in Edmond is being marketed. A softness in the local tenant sector bears project or two along the Memorial corridor watching although we anticipate recovery could be announced later in the year. And, over the next year to 18 months. The overall the 89,000 square foot Shops at North market improvement will remain measured Village is being pre-leased. More are in the given the uncertainties in the national works and, while some will not happen, the economy and the sluggish natural gas momentum is building for new development. market. Concern about the issues swirling around Chesapeake could affect the market What are retailers doing to address if energy employment declines significantly. Submarket Map internet sales and social media But, market fundamentals are moving in the marketing? Strategies vary greatly among right direction and we are positive about the retailers. Many are beefing up their own future for Oklahoma City retail. What new construction is underway? web offerings and making their web sites A number of existing centers are expanding more like their stores. Some have bought and/or adding freestanding buildings. We small online retailers to gain their internet Survey Footnote: referenced the Dick’s Sporting Goods expertise. Walmart is adding stations at their buildings, three of which are expansions stores where you can pick up online orders Our survey tracks 27.4 million square feet of existing successful centers. The fourth (at the back of course so you’ll shop while in 233 buildings of over 25,000 square feet Dick’s at the Shops at Quail Springs will you are there). Target is asking suppliers and 12.4 million square feet of stand-alone include some junior anchor space and to provide them with proprietary products buildings for a total market of 39.8 million restaurant outparcels. University North that can’t be purchased over the internet. square feet. Park is pre-leasing a second small strip Target has also rolled out the use of Shopkick outparcel; the Mathis Brothers’ Sleep Center nationwide to enhance its social marketing. There continues to be a significant number is nearly complete. There will be a similar Recently, 18 national retailers announced of smaller strip centers in the market (under 16,000 s.f. strip in front of the Dick’s at that they would accept Paypal for payment 25,000 s.f. in size). We would estimate there Fritts Farm and GBR is working on a strip at their stores. Retailers have awakened to are easily 3 million square feet of these center just across 19th street. The 28,000 the opportunities and threats of the internet. properties in the market.

149th in Moore

GLA SF Vacant SF Vacant % OKC Retail Market Totals 27,422,348 2,724,751 9.94%

2 Shoppes on Memorial S ales

Sales Summary Su mma

Property Address Year Built City SF Sales Price Price/SF ry Mustang Trade Center 345 N Trade Center Terrace 1984 Mustang 36,324 $2,217,000 $61.03

May Ten Trade Center 2927 NW 10th St 1970 OKC 41,325 $1,462,000 $35.38

Southpointe 8003 S Western 1981 OKC 22,600 $1,300,000 $57.52

Walnut Village 12301 N Rockwell 1986 OKC 53,800 $4,850,000 $90.15

Sears Quail Springs Mall 1980 OKC 182,000 $8,000,000 $43.96

Lightning Creek 8113 S. Western 1984 OKC 48,005 $3,850,000 Mixed -use

It’s starting to sound like a broken record, but investment sales remain the weakest part of the retail market, both locally and nationally. While there were 6 sales during the first half of the year, 4 were smallish strip centers; one was the one-off sale of the Sears store to Quail Springs Mall; and the most recent was the mixed-use Lightning Creek. Very few traditional neighborhood centers are on the market. We attribute much of this to a general lack of financing (at least at terms favorable to the mainstream real estate investor) and the inability of sellers to replace their existing returns in the market.

More strip centers will be sold over the course of the year; two or three are currently under contact. And, Inland is expected to close on the Shops at Moore which is currently in bankruptcy. We anticipate the trend of smaller properties and distressed property sales to continue. The full recovery of the investment sales market will likely take another 18 to 24 months coinciding with the national recovery and the gradual loosening of credit. Silver Springs Pointe There will be significant pent up demand once the market turns the corner and we anticipate cap rate compression over that time period. This is already being seen in high quality product both here and in major markets across the country.

There are five classes of shopping centers being evaluated. “A” centers are super regional centers containing in excess of 900,000 square feet. “B” centers are regional centers containing from 300,000 to 900,000 square feet. Class “C” centers are those community shopping centers with 100,000 to 300,000 square feet. Class “D” centers contain 30,000 to 100,000 square feet and are classified as neighborhood strip centers. “E” centers are strip centers with 25,000 square feet to 30,000 square feet. You will be able to see how each of the classes of centers in each sector are performing.

3 2012 Mid–Year Oklahoma City Retail Market Summary North Submarket

SUBMARKET Summary NORTH OKC SUBMARKET VACANCY 8%

The North submarket is the leading retail area of Oklahoma City; one of the areas that 7%

all national retailers want to be. Vacancy declined yet again, reaching 7.1 percent at 6%

mid-year compared to 7.7 percent at year-end. Smaller centers and older centers in the 5%

market reflect a higher vacancy, typically 12 to 15 percent, but the larger centers and 4%

malls are highly occupied and drive the submarket vacancy down. 3%

2%

The submarket is seeing significant activity. The former Books a Million building has 1% been demised and filled with small shop tenants. Deals are pending to fill the former 0% 2008 2009 2010 2011 2012 Linens ‘N Things space at Belle Isle and the former Ultimate Electronics at Quail Springs Marketplace. Interest in the submarket is driving new construction, including the Shops at Quail Springs that will be home to Dick’s Sporting Goods and the Shops at North Village which is currently pre-leasing. Several retailers and developers are working on NORTH OKC SUBMARKET ABSORPTION deals along the Memorial corridor: this could very well be the site of the first Costco if 50

they come, another LA Fitness, and perhaps a new large-scale development. All signs 40 of the strength and drawing power of the area. There remains talk of possibly expanding 30 Penn Square Mall which is in the processing of adding Forever 21 and maintaining its 20 dominant position. The purchase of the Sears building at Quail Springs by General 10 Growth will give them to opportunity to upgrade the Mall although Sears is anticipated to occupy the space for another two years. A lot of good news at the top end of the Market. 0 (thousands of square feet) (thousands of square -10

-20 2008 2009 2010 2011 2012 t h r o N

4 Quail Springs Mall - Sears 2012 Mid–Year Oklahoma City Retail Market Summary North Submarket Construction North Class Built/Updated Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenants Shops at Quail Springs 2012 Blanton Properties 87,000 37,000 42.53% $0.00 $0.00 Dick’s Sporting Goods NW 146th & Pennsylvania Small Shops, Outparsels Construction North Totals 87,000 37,000 42.53%

Built/Up- Anchor Tenant(s) North Class dated Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 50 Penn Place C 1973/1985/00 Collier’s International 86,082 65,774 76.41% $12.00 $0.00 Full Circle Bookstore NW 50th St & N Pennsylvania Ave Gary Gregory 6900 Place D 1981/91/92 CBRE 49,502 14,500 29.29% $8.00 $10.00 Ted’s Cafe, Cricket 6900 N May Ave Ryan Storer Subway, At the Beach, Belle Isle Station B 2000 Price Edwards & Co. 433,333 8,320 1.92% $18.00 $23.00 Wal-Mart Super Center NW Expressway & N Classen Blvd Laci Jackson/ Karleen Krywucki/Susan Brinkley/Ev Ernst Old Navy Britton Plaza Shopping Center E 1955/2000 Gerald Gamble Co. 27,340 5,050 18.47% $8.00 $8.00 Johnnies’ Charcoal Broiler 2648 W Britton Rd Gerald Gamble Britton Square D 1983 Levy/Beffort 27,326 5,189 18.99% $9.00 $0.00 Beauty Alliance 9415 N May Ave Jim Rose Gourmet Yarn Company Camelot Square C 1984 Blanton Property Co. 107,799 4,000 3.71% $0.00 $0.00 Cox Communications NW 122nd St & N Pennsylvania Ave Jeff Bolding Casady Square C 1953/83/95 Price Edwards & Co. 158,764 24,111 15.19% $10.00 $14.00 CVS Pharmacy W Britton Rd & N Pennsylvania Ave Laci Jackson//Susan Brinkley/Ev Ernst Walmart Neighbor Mkt Centennial Plaza B 1993 CBRE 233,794 12,000 5.13% $10.00 $14.00 Best Buy NW 58th St & N May Ave Mark Inman Home Depot Charter At May D 1963/88/96 The Boettcher Companies 99,757 1,400 1.40% $11.00 $6.50 Luby’s Cafeteria 9494 N May Ave Fred Boettcher Mill Creek Classen Curve C 2008 Blanton Properties 141,066 28,991 20.55% $20.00 $24.00 Balliet’s, Republic, Whole Foods NW Grand Blvd & N Classen Blvd Tom Blanton Cafe 501 Colonial Plaza C 2003 Eric Roberts 122,000 0 0% $0.00 $0.00 9225 N May Ave Eric Roberts Cato Colonnade D 1984 Brady’s Properties 78,000 2,119 2.72% $8.00 $13.00 Party Bazaar 9600 N May Ave Ali Ghaniabadi Boca Boca Country Club Corner D 1959/96 JAH Realty, LP 53,477 0 0% $16.00 $0.00 6410 N May Ave Jeff Norman/Ethan Slavin Half Price Books Country Club Plaza D 1970/92/03 NAI Sullivan Group 38,436 1,200 3.12% $12.00 $12.00 Fitness Together 2800 W Country Club Dr Susan Davis Jordan Edward Jones, Heritage Trust Cross Rock Shops E 2001 Dan Ward Companies 25,060 1,375 5.49% $18.00 $20.00 ME/CU Credit Union 3521-3561 W Memoral Rd Chris Bruel AAA, McAlister’s Deli Fenwick Plaza D 2009 Lease Space OKC 35,304 8,999 25.49% $10.00 $13.00 Local Tenants 16524 N Pennsylvania Ave Gretchen Bybee French Market Mall C 1985 CBRE 244,724 13,750 5.62% $8.00 $25.00 Bed Bath & Beyond 2850 NW 63rd St Mark Inman Staples Gold’s Gym Center E 2008 Hawkins Companies 66,662 0 0% $12.00 $18.00 ATT Flagship Store N 2301 W Memorial Rd Ryan Manteuffel Gold’s Gym o Highland Park Retail Center D 2009 CBRE 26,369 6,007 22.78% $17.00 $0.00 Louie’s r W 189th St & N Western Ave Stuart Graham Lapels Dry Cleaners t h Lakehurst Plaza D CBRE 32,637 4,800 14.71% $12.00 $0.00 Gulfport Sea Food 8025 N May Ave Jason Little Movement Inovations Dance Lakeside Shops Shopping Center D 1950/99/07 Pippin Properties 67,000 16,129 24.07% $9.00 $12.00 Firestone 7500 N May Ave Julie Shelton Freddy’s Frozen Custard Lakewood Shopping Center D 1980 The Pilchner Group 55,247 2,500 4.53% $9.00 $0.00 Mazzio’s 6901 N May Ave Gaby Villarreal Cokesbury Bookstore Mayfair Place D 1978 Price Edwards & Co. 95,000 10,177 10.71% $10.00 $0.00 Akin’s Health Foods 2900 NW 63rd St Karleen Krywucki PetsMart, Big Lots Memorial Square C 2006 CBRE 225,000 7,785 3.46% $20.00 $20.00 Super Target W Memorial Rd & N Pennsylvania Ave Inman/Graham PF Changs Midland Center C 1961 Price Edwards & Co 54,272 3,503 6.45% $0.00 $0.00 Conn’s NW Expressway Susan Brinkley, Ev Ernst, Laci Jackson Panera Bread Nichols Hills Plaza C 1963 Chesapeake Energy 130,000 6,036 4.64% $14.00 $16.00 Starbucks 6501 Avondale Dr Rena Owen North Penn Plaza D 1970/71 Steve Hetherington 32,000 0 0% $0.00 $0.00 Koslow’s 5601 N Pennsylvania Ave Steve Hetherington Commercial Federal Bank Northpark Mall C 1971/81 Morris Enterprises 200,000 39,000 19.50% $13.00 $0.00 Shogun Steak House 12100 N May Ave Kevyn Colburn B.C. Clark, Rococco’s Penn Square Mall A 1960/88 Simon Property 1,100,000 0 0% $0.00 $0.00 Apple Store 1901 NW Expressway Simon Property Macy’s, Dillards Penn-Hefner Plaza D 1973/77 Haydel Associates 69,392 8,600 12.39% $12.00 $12.00 Buy For Less 2121 W Hefner Rd Aimee Dial Parrish Beauty World Quail Plaza C 1965/89/91 Morris Enterprises 144,335 39,000 27.02% $12.00 $15.00 USA Baby 10950 N May Ave Kevyn Colburn Goodyear Tire Quail Springs Mall A 1980/98/99 General Growth Mgmt.,Inc. 1,140,038 14,820 1.30% $0.00 $0.00 Macy’s W Memorial Rd & N Pennsylvania Ave Kelly Waswo JC Penney Quail Springs MarketPlace B 1998 Bayer Properties 450,000 57,227 12.72% $0.00 $0.00 Old Navy, Ross W Memorial Rd & N Pennsylvania Ave Mary Beyerzell Lowe’s Quail Springs Village E 1983 JAH Realty, L.P. 26,500 0 0% $16.00 $20.00 RadioShack 13801 N Pennsylvania Ave Ethan Slavin Pier 1 Imports Quail Village D 2007 Levy Beffort 49,845 3,000 6.02% $18.50 $18.50 Cafe 7 14101 N May Ave John Cohlmia Shoppes at North Pointe D 2002 Price Edwards & Co 37,684 0 0% $15.00 $0.00 Chase Bank W Memorial Rd & N May Ave Phillip Mazaheri Jimmys Egg Shops at the Veranda B 2006 Mueller Capital 30,650 15,328 50.01% $17.00 $0.00 Holder Brothers Beef 150th St & N Western Ave David Mueller Spring Creek North D 1981 JAH Realty, L.P. 89,006 10,265 11.53% $14.00 $12.00 CVS Pharmacy 12200 N May Ave Ethan Slavin Homeland The Plaza at Quail Springs E 2005 JAH Realty, L.P. 104,001 1,550 1.49% $14.00 $0.00 Fabrics Unlimited 2221 NW 138th St Ethan Slavin Dollar Tree Town & Country Village D 1982/92 Brady’s Properties 43,500 0 0% $10.00 $0.00 Cocina De Mino 12335 N May Ave Ali Ghaniabadi Subway, At the Beach Village at Quail Springs C 2004 Inland Companies 100,404 0 0% $0.00 $0.00 Gordmans 2201 W Memorial Rd Jason Kasal Best Buy Village Park E 1972 CBRE 32,574 9,995 30.68% $8.00 $0.00 Magnolia Hair Salon 10405 N May Ave Ryan Storer Village Plaza (Waverly Crossing) D 1964/73/89 NAI Sullivan 49,133 5,000 10.18% $8.00 $0.00 Westlake Hardware 1505 W Britton Rd David Hartnack Dollar General Wilshire Village E 1986 Dr. Scott Samara,M.D. 27,000 0 0% $11.00 $12.00 Dodson Art Gallery W Wilshire Blvd & N Western Ave Dana Makeup Bar North Totals 6,440,013 457,500 7.10% 5 2012 Mid–Year Oklahoma City Retail Market Summary NorthWEST Submarket

SUBMARKET Summary NORTHWEST OKC SUBMARKET VACANCY 20% The northwest submarket saw the most significant deterioration over the first half of

the year. Market vacancy increased to 18.4 percent from 16.0 percent. Nearly two- 15% thirds of this increase is attributable to additional vacancy at West Park Mall with the

closure of the post office and a few small tenants. There are a number of properties in 10% this submarket with substantial vacancy. Most of the retail is established neighborhood

shopping centers with little new product. For many retailers, this market is their second 5% or third choice. This is reflective of the area demographics and the distressed condition

of some of these properties: the northwest submarket is characterized by established 0% 2008 2009 2010 2011 2012 neighborhoods with limited population growth and relatively unchanged demographics.

There is a sizable gap in performance between these older, poorly maintained and often ill-configured centers and the newer, well-positioned centers like Silver Springs NORTHWEST OKC SUBMARKET ABSORPTION Crossing, Rockwell Plaza, etc. The outlook for this submarket is more of the same 60

with no significant improvement in the overall numbers but the current high-performers 30 continuing to do well. No new development is anticipated anytime soon. 0

-30

-60

-90 (thousands of square feet) (thousands of square -120

-150 2008 2009 2010 2011 2012 hWEST t o r N

6 West Park Mall 2012 Mid–Year Oklahoma City Retail Market Summary NorthWEST Submarket

Northwest Class Built/Updated Leasing Agent GLA Vacant Vacant Rate 1 Rate 2 Anchor Tenant(s) 122nd & MacArthur D 1985 Levy\Beffort 34,000 3,000 8.82% $4.00 $10.00 Dollar General NW 122nd St & N MacArthur Blvd John Cohlima Brixton Square C 1985 GBR Properties, Inc. 89,607 4,414 4.93% $10.00 $13.00 Clear Sight 7101 NW Expressway Bob Parker Party Galaxy Gold’s Gym D 1992 CBRE 49,339 3,842 7.79% $18.00 $0.00 Century 21 Lake Hefner Pkwy & NW Expy Mark Inman, Stuart Graham Gold’s Gym Cornerstone Plaza D 58/78/2003 NAI Sullivan 65,285 3,450 5.28% $5.76 $6.00 Family Dollar, City Bites NW 39th St & N MacArthur Blvd David Hartnack Ocean Dental Council Crossing C 1986/92/03 NAI Sullivan Group 142,197 78,458 55.18% $12.00 $10.00 Little Caesar’s 8101 NW Expressway David Harnack Chelino’s Courtyard Plaza D 1984 CBRE 38,998 6,836 17.53% $14.00 $14.00 Blockbuster 6401 NW Expressway Ryan Storer At The Beach Lakeshore Shopping Center C 2002 The Pilcher Group 139,447 30,540 21.90% $9.00 $8.00 Academy Sporting Goods 4200 NW Expressway Gaby Villarreal Jason’s Deli Lakeshore Shops D 1998 Charles Shadid 33,140 0 0% $5.00 $8.00 Bangkok Restaurant 7930 N MacArthur Blvd Charles Shadid Al’s Bicycles MacArthur Shops E 1983 Collier’s International 25,630 3,650 14.24% $8.00 $0.00 VitaCare Home Health W Britton Rd & N MacArthur Blvd Jim Sanders Market Place OKC C 1985 Levy\Beffort 178,854 27,763 15.52% $12.00 $10.00 Vatterott College 5501 NW Expressway Louis Almaraz Hideaway Pizza Market Plaza C 1981/82 CBRE 151,439 36,347 24% $7.00 $8.00 Tuesday Morning 7001 NW Expressway Mark Inman/Ryan Storer Westlake Hardware MayFair Village C 1948/90 Price Edwards & Co 174,911 53,508 30.59% $14.00 $10.00 Michael’s NW 50th St & N May Ave Susan Brinkley, Ev Ernst, Laci Jackson Steinmart Newport E 1972 Charles Shadid 25,740 5,400 20.98% $5.00 $6.00 7-Eleven 9120 N MacArthur Blvd Charles Shadid Sunshine Laundry OKC Market Square C 1983/00 Price Edwards & Co. 143,579 17,198 11.98% $7.00 $9.00 Family Leisure 8400 NW Expressway Susan Brinkley/Laci Jackson/Ev Ernst Dress Barn Peppertree Square D 1984 Levy\Beffort 77,938 26,822 34.41% $8.00 $10.00 Tan & Tone America 6444 NW Expressway Jim Rose

Portland Plaza C 1994 JAH Realty, L.P. 103,312 37,991 36.77% $12.00 $7.00 Locke Supply N o r NW 39th St & N Portland Ave Ethan Slavin Quailbrook Center D 1987 Price Edwards & Co 90,389 0 0% $15.00 $0.00 Panera Bread t

4401 W Memorial Rd Phillip Mazaheri Mercy Health System hWEST Rock Center E 1984 Levy\Beffort 29,000 4,000 13.79% $10.00 $10.00 Little Mikes 6710 NW Expressway John Colimia Express Tag Agency Rockwell Crossing E 1986 CBRE 30,200 5,250 17.38% $14.00 $12.00 First Class Learning 12000 N Rockwell Stuart Graham Rockwell Northwest C 1984/99 JAH Realty, L.P. 163,000 15,309 9.39% $18.00 $10.00 Hobby Lobby 7000 NW Expressway Ethan Slavin Chick-Fil-A Rockwell Plaza B 1981/20001981 Medallion Real Estate 414,507 29,098 7.02% $10.00 $18.00 Target 8375 N Rockwell Ave Whitney Ward Ross Dress for Less, Petsmart Silver Springs B 2000 CBRE 700,000 4,332 0.62% $15.00 $0.00 Wal-Mart 7600 NW Expressway Stuart Graham Home Depot Springbrook D 1968 First Commercial Management, Inc. 50,000 1,236 2.47% $7.50 $0.00 All American Fitness 6207 NW Expressway John W. Meek, RPA China Super Buffet Springdale C 1961/86/93/99 Grace Commercial 126,000 14,438 11.46% $7.50 $7.50 Dollar General NW 50th St & N Meridian Ave Mary R. Grace/Larry Emmer Rent A Center Walnut Village D 1986/00 Howard Properties 53,850 5,000 9.29% $12.00 $0.00 Lady Of America NW 122nd St & N Rockwell Ave Bill Howard Warr Acres D 1950/94 Inovex 34,400 1,000 2.91% $10.00 $0.00 Big Red Shop NW 50th St & N MacArthur Blvd Ken Park Taj Grocers Warwick D 1985 Ta Enterprises 69,433 30,400 43.78% $8.00 $0.00 Crest 11122 N Rockwell Ave Moon Ta Dollar General, Eden Salon & Spa Warwick Crossing D 1995 NAI Sullivan Group 31,804 10,004 31.46% $9.75 $0.00 Westside Batting Cages W Hefner Rd & N Rockwell Ave David Hartnack FX Salon Warwick Plaza D 1984 Levy\Beffort 69,433 62,650 90.23% $8.00 $8.00 Subway NW 122nd St & N MacArthur Blvd John Cohlmia Eden Salon West Park Mall C 1972 GBR Properties, Inc. 130,155 117,155 90.01% $16.00 $0.00 Family Dollar NW 63rd St & N MacArthur Blvd Randy Valencourt Church Northwest Totals 3,465,587 639,091 18.44%

7 2012 Mid–Year Oklahoma City Retail Market Summary SOUTH Submarket

SUBMARKET Summary SOUTH OKC SUBMARKET VACANCY 35%

The south submarket is somewhat unique in that its retail is predominantly neighborhood 30% centers and stand-alone buildings. The submarket vacancy saw improvement over the 25% first half of the year, decreasing to 13.3 percent from 15.0 percent at year-end. Much 20% of this improvement is due to the lease-up of space at Brookwood Shopping Center 15% following a renovation of the north half of the center. In addition to this renovation, planned improvements to South Shields Plaza should help address significant vacancy 10% there as well. These two centers accounted for nearly 1/3rd of the submarket vacancy 5%

at year-end. A local developer recently purchased the vacant Homeland building at May 0% 2008 2009 2010 2011 2012 and I-240; Heritage College will occupy the former Best Buy building, and it is anticipated that the former Ultimate Electronics building will be occupied shortly as well. LA Fitness is expected to build a new building along the I-240 corridor. All of which is very positive for a submarket that has struggled to gain traction over the last few years. SOUTH OKC SUBMARKET ABSORPTION 100 It continues to be worth noting that the northern half of this submarket is heavily 0 Hispanic and a high growth area. Many small retailers cater to this market and centers in the area are generally well-occupied. The Hispanic market will continue to grow south -100

and become a more predominant part of this submarket -200

-300 (thousands of square feet) (thousands of square -400

-500 2008 2009 2010 2011 2012 H T U SO

8 Brookwood Shopping Center 2012 Mid–Year Oklahoma City Retail Market Summary SOUTH Submarket

South Class Built/Updated Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenants 29th & Kentucky Shops D 1970 L & S Real Estate 32,500 0 0% $4.00 $0.00 Family Dollar SW 29th St & S Kentucky Ave Young Shin New Century Food 74 South Centre D 1973/77/06 Paul B. Odom Construction 50,000 1,500 3% $12.00 $14.00 Pancho’s Mexican Rest. SW 74th St & S Pennsylvania Ave Linda Brown At the Beach 89’er Plaza E 1984 Robert Jenks 30,000 5,500 18.33% $4.00 $0.00 Body Beautiful SW 89th St & S Walker Ave Robert Jenks Sharp Cleaners Airline C 1999 Charles Shadid 121,368 19,000 15.65% $3.00 $5.00 Tom’s Tires 3400 SW 29th St Charles Shadid Ell Rodeo Carnecaria Almonte Square C 1963 Blanton Property Co. 107,676 74,745 69.42% $0.00 $0.00 Almonte Bingo 6100 S May Ave Jeff Bolding Brookwood North I & II D 1998 Charles Shadid 58,249 9,700 16.65% $5.00 $7.00 China Wok Restaurant SW 89th St & S Western Ave Charles Shadid Chelino’s Restaurant Brookwood Shopping Center C 1972/2011 Precor Ruffin, LLC 110,087 45,385 41.23% $10.00 $15.00 Boomerang SW 89th St & S Western Ave Rick Pritchett Leslie’s Pool Centre 8400 E 1984 Precor Ruffin, LLC 29,355 1,560 5.31% $9.00 $9.00 H&R Block 8400 S Western Ave Rick Pritchett Johnnie’s Bakery Chatenay Square C 2001 PB Odom, III 114,115 5,300 4.64% $16.50 $0.00 Homeland SW 104th St & S Pennsylvania Ave PB Odom, III Panera Bread Country Park Shopping Center D 1978 Yumare Folkloric 30,000 4,950 16.50% $5.76 $6.00 Value Thrift SW 59th St & S Agnew Ave Yumare Folkloric Agnew Quick Trip Crest Center C 2010 Levy\Beffort 96,000 8,877 9.25% $20.00 $10.00 Crest Grocery SW/C SW 104th & S. May John Cohlmia Economy Square C 1963/98 Levy\Beffort 203,451 23,265 11.44% $8.00 $12.00 Buy For Less SW 29th St & S May Ave Michael Almaraz Walgreens Grant Square C 1958/91/92 Price Edwards & Co. 103,810 14,003 13.49% $8.00 $5.00 Family Dollar SW 44th St & S Pennsylvania Ave Susan Brinkley/Laci Jackson/Ev Ernst Blockbuster Video Greenway Plaza D 1985 Levy\Beffort 73,240 10,422 14.23% $11.00 $0.00 Westlake Hardware SW 119th St & S Western Ave Jim Rose Tuesday Morning Hillcrest Shopping Center D N/A Blanton Property Co. 50,000 25,000 50% $0.00 $0.00 Dollar General 2100 SW 59th St Jeff Bolding Rent-A-Center I-240 Penn Park Phase C 2005 CBRE 239,743 9,625 4.01% $17.00 $0.00 Marshalls I-240 & S Pennylvania Ave Mark Inman Pets Mart

Lightning Creek D 1985 Lightning Creek Complex 48,005 800 1.67% $8.00 $0.00 Costume Shop SO 8100 S Western Ave Tammie Knight Market Place E 2009 Equity Realty 27,480 12,938 47.08% $0.00 $0.00 Lemon Grass U T SW 119th St & S Western Ave Mark Hyde Papa Murphys H Mayridge Shopping Center D 1956 Shadid Properties 38,000 0 0% $3.00 $4.00 Dollar General SW 44th St & N May Ave Buddy Shadid Palagio Shops on So. Western C 2005 Paul B. Odom Construction 49,003 6,800 13.88% $16.50 $0.00 Pizza Hut,Marble Slab SW 104th St & S Western Ave Paul Odom III Fitness 19 Reding Shopping Center D 1972 JAH Realty, L.P. 69,344 10,000 14.42% $12.00 $7.00 El Chico Grand Blvd & S Western Ave Ethan Slavin Little Caesars South 240 Plaza 1988 Brady Properties 25,000 4,800 19.20% $8.00 $0.00 US Cellular 7800 S Western Ave Ali Ghiaiabadi Hewitt Packer Tax Service South Meridian Plaza D 1983 CPG LLC 36,000 4,000 11.11% $14.00 $0.00 Waffle House 1100 S Meridian Ave John Gholami Quizno’s South Park D 1975 South Park 86,848 0 0% $0.00 $0.00 Dept. of Corrections 4500 S May Ave Henry Messiah Church Ministries South Penn Plaza D 1984 Commercial OKC 90,000 6,550 4% $10.00 $0.00 Family Dollar 1620 SW 89th St Marc Weinmeister City Gym South Shields Plaza C 1972/85/92/05 Zerby Interests 224,527 79,748 35.52% $3.00 $12.00 Langston’s Western Wear SW 74th & S Shields Blvd Caleb Hill Burlington Southeast Plaza C 1964 HGM Inv. 185,266 7,000 3.78% $4.50 $4.50 Buy For less SE 44th St & S High Ave Russell Hunt, Jr. Family Dollar Southern Hills C 1964/89/90 Phillips Edison & Co. 210,419 584 0.28% $18.00 $8.00 Payless SW 74th St & S Pennsylvania Ave Jeff Valiquett Mill Creek Southwestern Plaza C 1962/87 Southern Properties 117,846 2,800 2.38% $9.00 $0.00 Cocina de Mino Restaurant SW 59th St & S Western Ave Steve Cupit/Amanda Family Dollar Stonebriar Shopping Center E 2005 Brady’s Properties 30,000 2,600 8.67% $10.00 $0.00 Rusty’s Custard 13400 S Western Ave Ali Ghianiabadi Country Wide Insurance Summit Point D 2008 Equity Commercial Realty 30,414 13,116 43.12% $13.00 $0.00 Louie’s SW 89th St & S Western Ave Judy Hatfield Towne South Center C 5/4/2010 Price Edwards & Co. 130,000 0 0% $15.00 $15.00 On The Border SW 74th St & S Walker Ave Phillip Mazaheri Chuck E Cheese Walker Square C 1983 Precor Ruffin, LLC 100,430 13,928 13.87% $9.00 $14.00 El Mariachi Super Marcado SW 59th St & S Walker Ave Rick Pritchett Metro Tech Walnut Square C 1985 Price Edwards & Co. 294,500 15,850 5.38% $9.00 $12.00 Big Lots, Hobby Lobby 2209 SW 74th St Laci Jackson/Susan Brinkley/Ev Ernst Conn’s Westernview Center C 1958/78 Levy\Beffort 104,000 14,920 14.35% $8.00 $16.00 Taste of China I-240 & S Western Ave Jim rose Howard Brothers Florist Westminster Village D 1986 Brady’s Properties 79,500 0 0% $8.00 $0.00 Westminster Executive Suite 10601 S Western Ave Ali Ghaniabadi South Totals 3,426,176 455,266 13.29%

9 2012 Mid–Year Oklahoma City Retail Market Summary EDMOND Submarket

SUBMARKET Summary EDMOND SUBMARKET VACANCY 15% After seeing significant improvement the past two years, the Edmond Submarket vacancy 12% increased to 12.0 percent from 9.7 percent at year-end. Nearly a third of the increase is new

space to the market that has not yet been absorbed, including the 23,000 s.f. of small shop 9% space that is part of the Uptown Grocery Center. The remainder is a broader rise in vacancy among small shop space, particularly local tenants. This is reflective of a trend we’ve seen 6% in several submarkets. 3%

There remain a handful of centers with vacancy issues that distort the overall submarket 0% 2008 2009 2010 2011 2012 numbers: Eagle Crest (65% vacant) and Edmond Market Place (85% vacant) are the two most significant. Newer, well-located centers in the submarket are generally well-occupied. The Edmond market is healthier than the rise in vacancy suggests. As a result, a handful of developers are working on launching new projects. As noted, an announcement of a large EDMOND SUBMARKET ABSORPTION tenant to kick off Shoppes at Fox Lake is expected at any time. The development of I-35 80 & Covell is back on the table. LA Fitness has reportedly identified a site for a store in the 60 market. So, the higher end of the market is doing well; and, we expect the rise in small shop 40 vacancy to be a short-term issue. 20 0 -20 -40

(thousands of square feet) (thousands of square -60 -80 -100 2008 2009 2010 2011 2012 EDMOND EDMOND

10 Uptown Grocery Center 2012 Mid–Year Oklahoma City Retail Market Summary EDMOND Submarket

Edmond Class Built/Updated Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenants 33rd & Boulevard D 1982 Lee Segal 49,400 0 0% $7.00 $0.00 Mardel’s E 33rd St & S Boulevard St Lee Segal Family Dollar Alta Mesa D 2008 JAH Realty, L.P. 31,061 6,249 20.12% $20.00 $13.00 Qdoba, Edwards Jones 301 S Bryant Ave Ethan Slavin At the Beach Berkshire Plaza D 2002 Price Edwards & Co. 35,612 1,800 5.05% $13.00 $15.00 Office Depot W 15th St & S Broadway Laci Jackson//Susan Brinkley/Ev Ernst Boulevard Village D 1985 Maloy Properties, LLC 36,604 5,200 14.21% $0.00 $0.00 Radio Shack 3404-3456 S Boulevard St Kaye Maloy Pizza Hut Broadway South D 1977 Levy\Beffort 61,524 3,398 5.52% $15.00 $0.00 Edmond Music 3320 S Broadway John Cohlmia Courtyard Antiques Broadway Square C 1968/94 Land Run Commercial 98,000 0 0% $13.00 $14.50 City Bites 3601 S Broadway Jeremy Foraker Morrison Group Bryant Square C 1973/92 Price Edwards & Company 274,930 3,333 1.21% $8.00 $16.00 Bed Bath & Beyond E 2nd St& N Bryant Ave Susan Brinkley/Laci Jackson/Ev Ernst Steinmart Danforth Plaza D 2003 Levy\Beffort 30,000 9,037 30.12% $8.00 $0.00 Payless, Sally’s Beauty W Danfort Rd & S Sante Fe Ave Jim Rose H & R Block Danforth Square C 1999 Land Run Commercial 108,000 4,788 4.43% $12.00 $0.00 Athletic Village W Danforth Rd & S Kelly Ave Jeremy Foraker Domino’s Pizza Eagle Crest D 1983 CBRE 51,000 33,240 65.18% $5.00 $10.00 3000 E Memorial Rd Stuart Graham Edmond Crossing C 1995 Collier’s International 159,600 9,950 6.23% $10.00 $16.00 Homeland 24 E 33rd St Gary Gregory TJ Maxx Edmond Exchange B 2003 JAH Realty, L.P. 71,243 9,950 13.97% $10.00 $16.00 On the Border 3233 S Broadway Ethan Slavin Coach’s Edmond Market Place D 1981/82/90 Price Edwards & Company 96,112 80,747 84.01% $6.50 $14.00 Delta Cafe’ 3301 S Boulevard Susan Brinkley, Ev Ernst, Laci Jackson Traditions Edmond Plaza C 1964/89/05 Price Edwards & Co 158,373 3,850 2.43% $8.00 $14.00 Westlake Hardware E 15th St & Broadway Ext. Susan Brinkley/Laci Jackson/Ev Ernst Fitness 19, Staples Edmond Trails E 2007 25,215 0 0% $14.00 $12.00 YMCA of Edmond 289 S Santa Fe Ave Brandy Rundel Spinal Wellness Center Homestead Plaza D 2003 Paradigm Real Estate 39,000 13,837 35.48% $15.00 $0.00 US Cellular W Danforth Rd & N Santa Fe Ave Charlene Wilson Buffalo Wild Wings Kelly Centre Shopping Center D 2003 Matrix 43,769 9,925 22.68% $10.00 $14.00 Nichols Hills Bank EDMOND 610 S Kelly Ave David Lide Kelly Plaza D 1984 Levy\Beffort 87,503 22,934 26.21% $8.50 $10.50 Colortyme W Edmond Rd & S Kelly Ave Carl Archiniaco/Jim Rose Sherwin Williams Kickingbird Square C 1983/88 Lev\/Beffort 110,000 0 0% $13.90 $0.00 Regal Cinema

EDMOND 1323 W Danforth Rd Jim Rose Interurban Market Depot B 1965 Rick Allen Properties 63,335 3,903 6.16% $0.00 $0.00 Charleston’s 3409 S. Broadway Rick Allen Sears North Oaks D 1983/89 Price Edwards & Company 70,672 15,077 21.33% $14.00 $10.00 Westlake Hardware 821 W Danforth Rd Karleen Krywucki, Susan Brinkley, Laci Jackson, Ev Ernst Dollar General Oak Brook D 1982/91/92 Wiggin Properties 43,006 13,497 31.38% $10.00 $0.00 Hunan 218 S Santa Fe Ave Don Faulkner Dollar General Oxford Pointe Shops E 1986 Price Edwards & Co. 26,600 3,060 11.50% $9.00 $10.00 The Archives E 2nd St & S Bryant Ave Susan Brinkley The Vision Center Pebble Creek D 2001 Walter Morris & Associates 62,500 0 0% $18.00 $0.00 Kohl’s W Danforth Rd & N Santa Fe Ave Andy Boyd Dollar Tree Shoppes On Broadway C 2008 Price Edwards & Co 160,000 17,980 11.24% $20.00 $22.00 Hobby Lobby E 33rd St & S Broadway Susan Brinkley, Karleen Krywucki, Ev Ernst, Laci Jackson IO Metro Signal Shops LLC D 1986 Fotis Bargeliotes 35,000 3,600 10.29% $9.00 $10.00 Conoco 1700 S Kelly Ave Fotis Bargeliotes Daylight Donuts Spring Creek Plaza D 2000 Zerby Interests 63,000 2,750 4.37% $20.00 $23.00 Talbot’s, Ann Taylor Loft E 15th St & S Bryant Ave Shawn Driver Panera Bread, Coldwater Creek Spring Creek Village of Edmond D 2007 Chales Ballenger 70,000 1,500 2.14% $18.00 $26.00 Legacy Bank E 15th St & S Bryan Ave Charles Ballenger Louie’s University Plaza 3 B 2000 Sooner Development 400,000 8,850 2.21% $14.00 $0.00 Target Super Center E 2nd St & S Bryant Ave Brad Goodwin Lowe’s University Village II B 2000 Sooner Investment 76,500 4,426 5.79% $18.00 $22.00 Wal Mart Neighborhood Market E 2nd St & S Bryant Ave Melanie Goeders Half Price Books Uptown Grocery Center 2011 Esperanza Real Estate Investments 73,350 23,000 31.36% $20.00 $18.00 Uptown Grocery 1230 W. Covell Susan Binkoski Willow Creek E 1985 Levy\Beffort 31,000 12,000 38.71% $13.00 $10.00 Oasis Church E 2nd St & N Santa Fe Ave Jim Rose Vernon Millspaugh Edmond Totals 2,741,909 327,881 11.96%

11 2012 Mid–Year Oklahoma City Retail Market Summary West–Central Submarket

SUBMARKET Summary

After improving significantly last year, the West Central submarket vacancy was relatively WEST−CENTRAL SUBMARKET VACANCY unchanged over this reporting period, ending June at 7.3 percent compared to 7.4 percent at 10% year-end. This is another market that is seeing retail space added to existing developments, 8% most of which is either pre-leased or build-to-suit. Westgate Marketplace has added a stand-

alone Panera with a drive-thru and is building a new Dick’s Sporting Goods. Outlet Shoppes 6% of Oklahoma is adding 28,000 square feet of new shops that will be full upon opening. In addition, several new restaurants are planned on pad sites around the Outlet Shoppes. 4%

2% As noted in previous surveys, the submarket is really the aggregation of several separate

markets, most of which are doing well. The new development along I-40 is expanding as noted 0% 2008 2009 2010 2011 2012 above. The Asian district along Classen continues to maintain a high occupancy. The I-40 and Portland area, home to 32 stores, containing over 1.6 million square feet that specialize in furniture and accessories, remains the hub of furniture sales for the City. As is typical in our market, much of the submarket vacancy is concentrated in older neighborhood centers WEST−CENTRAL SUBMARKET ABSORPTION in this market; these properties have been relatively stable over the past few years and no 50

significant change is anticipated in the near-term either positively or negatively. 0

-50

-100

-150

-200 AL AL -250 (thousands of square feet) (thousands of square -300

-350 2008 2009 2010 2011 2012 –CENT R est R WEST-CENT W

MacArthur Court 12 2012 Mid–Year Oklahoma City Retail Market Summary West–Central Submarket

Construction West-Central Class Built/Updated Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenants Outlet Shops of Oklahoma - Expansion 2012 Horizon / CBL 28,000 28,000 100% $0.00 $0.00 Ann Taylor Loft Columbia Sportswear Westgate - Expansion 2012 Zerby Interests 45,000 45,000 100% $0.00 $0.00 Dick’s Sporting Goods Construction West-Central Totals 73,000 73,000 100%

West-Central Class Buit/Updated Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenants 16th & Indiana D 2002 Charles Shadid 41,079 0 0% $3.00 $5.00 Discount Dollar Store NW 16th St & N Indiana Ave Charles Shadid Bad Granny’s 36th & May Center C 1986 B.D. Eddie Enterprises 97,500 1,250 1.28% $8.00 $0.00 Pole Position Raceway SW 36th St & S May Ave Terry McGuire Ann Arbor Terrace E 1971 30,000 4,500 15% $8.00 $0.00 Family Dollar 4913 NW 23 St Arvest Plaza D 1986/00 J. S. Ferguson 32,600 2,800 8.59% $9.00 $0.00 Arvest Bank 915-917 S Cornwell Dr JS Ferguson Chisholm C 1979/82 CBRE 232,510 41,735 17.95% $3.00 $16.00 CiCi’s I-40 & Garth Brooks Blvd Ryan Storer Big Lots DeVille Shopping Center 1962/92/94 CBRE 125,377 5,270 4.20% $8.00 $8.00 Buy For Less 2408 N. Council Road Ryan Storer Heart & Hand Thrift Glen Oaks D 1968/98 JAH Realty, L.P. 49,161 9,220 18.75% $15.00 $7.00 Westlake Hardware NW 23rd St & N Rockwell Ave Ethan Slavin Blockbuster Video MacArthur Court D 1985 Levy Beffort Grubb Ellis 35,228 0 0% $10.00 $15.00 Jersey Mikes 3820 N MacArthur Blvd Michael Almaraz Verizon MacArthur Park D 1997 Charles Shadid 55,506 2,400 4.32% $5.00 $6.50 Community Thrift Store 2300 N MacArthur Blvd Charles Shadid Queen of Sheba Restaurant Meridian Plaza D 1959 Levy Beffort 90,590 22,670 25.02% $6.00 $0.00 James Lighting NW 16th St & N Meridian Ave Jim Rose Dollar General Mustang Shopping Center D 2004 CBRE 35,846 0 0% $16.00 $0.00 CATO 216 N Mustang Mall Terr Stuart Graham DOLLAR TREE Mustang Trade Center C 1983 LandRun Commercial 106,850 1,800 1.68% $9.00 $10.00 Dollar General Hwy 152 & S Mustang Rd. Jeremy Foracre Factory Connection Old Mill D 1974 National Properties 82,730 2,300 2.78% $6.00 $0.00 Locke Supply 301 Elm Ave Ray Wright Outlet Shops of Oklahoma A 2010 Horizon Development 348,000 0 0% $0.00 $0.00 Nike, Brooks Brothers WEST-CENT R NE C of 1-40 & Council Rd Curt Hammontree Coach Outlet

AL Penn Crossing D 1994 Sooner Investment Company 133,356 22,000 16.50% $9.00 $14.00 Walmart Neighborhood NW 23rd St & N Pennsylvania Ave Brad Goodwin Market, FedEx Office Plaza DeVille C 1970 BakerFirst 26,892 7,441 27.67% $8.00 $8.00 Oma’s Pantry 2411 N. Council Road Ben Schmidt ARW, Inc. Portland Square D 1958/87 Charles Johnson, DDS 38,000 10,000 26.32% $4.00 $0.00 Sam’s Wholesale Liquor NW 23rd St & N Portland Ave Chuck Johnson OK Family Thrift –CENT R Rock Glen Center E 1994 Rebublic Commercial 25,308 1,400 5.53% $3.64 $0.00 Coleman’s Pawn 1500 N Rockwell Ave Trayce Miller Labor Ready Shartel Plaza D 1965 Pro Realty 40,736 0 0% $14.00 $0.00 CVS AL est 5225 N Shartel Ave Greg Downs W Silver City Town Center D 1974/94 Price Edwards & Co 88,851 23,221 26.13% $8.00 $0.00 Tractor Supply 101 N Mustang Rd Susan Brinkley, Ev Ernst Salvation Army Laci Jackson Ten-M D 1958/88/91 Joe LaBar 33,000 0 0% $7.00 $0.00 Summit Business System NW 10th St & N Meridian Ave Joe LaBar Apple Tree Antique Mall Walnut Creek D 1974 Charles Shadid 52,822 3,882 7.35% $3.00 $4.00 Thermo Roll Shutters 1110 N MacArthur Blvd Charles Shadid West End Pointe B 2001 CBRE 507,500 10,600 2.09% $16.00 $16.00 Lowe’s I-40 & Garth Brooks Blvd Mark Inman Kohl’s West Pointe Shoppes E 2006 CBRE 25,000 17,192 68.77% $16.00 $18.00 Human Performance W Reno Ave & N Mustang Rd Centers Westgate Marketplace A 2000 Zerby Interests 720,406 3,000 0.42% $23.00 $0.00 Wal-Mart, Panera I-40 & S MacArthur Blvd Caleb Hill Best Buy, Ulta Westoaks Village D 1964 Baker - First 93,270 2,000 2.14% $3.90 $3.90 Family Dollar NW 10th St & N Rockwell Ave Ben Schmidt Will Rogers C 1982 Charles Shadid 160,000 29,000 18.13% $4.00 $6.00 Oriental Imports 3000 N Portland Ave Charles Shadid McSalty’s Pizza Windsor Hills C 1960/98 Phillips Edison Co. 235,561 61,420 26.07% $6.50 $12.00 Crest Foods, Cato 4601 NW 23rd St Jeff Valiquett Big Lots, Fitness 19 Windsor Park E 1982 Levy/Beffort 26,700 1,215 4.55% $10.00 $10.00 Ci Ci’s Pizza 2500 N Meridian Ave Jim Rose Yukon Hills C 1978 JAH Realty, L.P. 127,200 15,600 12.26% $6.00 $9.00 Cross Trainers Fitness S Cornwell Dr & E Vandament Ave Ethan Slavin Buy For Less Yukon Shopping Center D 2005 CBRE/OKLA 231,500 2,040 0.88% $14.00 $0.00 Dollar Tree I-40 & Garth Brooks Blvd Ryan Storer/Stuart Graham Cato Yukon Village C 2009 Gulf Coast Commercial Group 275,000 1,807 0.66% $0.00 $0.00 Target I-40 & Garth Brooks Blvd Danny Miller PetsMart West-Central Totals 4,204,079 305,763 7.27%

13 2012 Mid–Year Oklahoma City Retail Market Summary Moore–Norman Submarket

SUBMARKET Summary MOORE−NORMAN SUBMARKET Construction Moore-Norman Class Built/Updated Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenants VACANCY Fritt’s Farm - Expansion 2012 Direct Development 45,000 0 0% $0.00 $0.00 Dick’s Sporting Goods 10% The Moore-Norman submarket remains a shining star with vacancy of only 5.5 percent. University Northpark - Expansion 2012 Sooner Development 104,000 12,000 11.54% $0.00 $0.00 Crest, Sleep Center 8% Up slightly from year-end, but the lowest of all submarkets and still the focus of many Construction Moore-Norman Totals 149,000 12,000 8.05%

national retailers. Fritts Farm is adding Dick’s Sporting Goods and another small shop 6% strip; GBR is adding a strip across the street and a stand-alone Fitness One. University Northpark is pre-leasing another small strip outparcel, finishing up the Sleep Center 4% and Discount Tire and beginning construction on a Crest Market. For the first time in 2% several years, there is the possibility that University North Park will start Phase 2 of the

development, a mini lifestyle center. Several restaurants and other smaller developments, 0% 2008 2009 2010 2011 2012 below the 25,000 s.f. threshold tracked in our survey, are either underway or planned in this market. Older product in the submarket remains generally well-occupied as well.

We see nothing to keep this market from continued strong performance. With available MOORE−NORMAN SUBMARKET ABSORPTION land for expansion available at most of the newer projects, it is expected that space will 350 continue to be added to these developments incrementally. A number of retailers want 300 250 to add stores in the Moore-Norman submarket; expect additional announcements over 200 the second half of the year. 150 100 50 0 -50 -100 (thousands of square feet) (thousands of square

-150 W

-200 est -250 2008 2009 2010 2011 2012 r man r man R –CENT no - r e R E–N o AL oo M MOO

14 Fritt’s Farm at 149th 2012 Mid–Year Oklahoma City Retail Market Summary MOORE-NORMAN SUBMARKET

Construction Moore-Norman Class Built/Updated Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenants

Fritt’s Farm - Expansion 2012 Direct Development 45,000 0 0% $0.00 $0.00 Dick’s Sporting Goods

University Northpark - Expansion 2012 Sooner Development 104,000 12,000 11.54% $0.00 $0.00 Crest, Sleep Center

Construction Moore-Norman Totals 149,000 12,000 8.05%

Moore-Norman Class Built/Updated Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenants Alameda Square D 1984 Price Edwards & Co 94,256 15,007 15.92% $14.00 $10.00 Gold’s Gym 12th Ave SE & E Alameda St Ev Ernst, Laci Jackson, Susan Brinkley Dollar Tree Anatole D 1985 Equity Commercial Realty 64,555 0 0% $18.00 $19.55 Harbor Freight Tools 12th Ave SE & E Alameda St Gayla Artman Sherwin Williams Broadway Plaza D 2004 Price Edwards & Co 31,588 14,481 45.84% $11.00 $0.00 Home Creation 2200 N Broadway St Susan Brinklley Brookhaven Village C 1985 Price Edwards & Co. 153,889 34,167 22.20% $0.00 $0.00 Chico’s 36th Ave NW & W Robinson St Brandy Rundel The Health Club Camden Plaza E 2006 Equity Commercial Realty, LLC 31,100 5,200 16.72% $17.00 $0.00 Dan McGuinness Pub 1003-1035 SW 19th St Eric Fleske H&R Block Campus Corner Shops C 1911/93 Equity Commercial Realty, LLC 225,000 0 0% $15.00 $0.00 OU Authentic 301 W Boyd St Judy Hatfield Louie’s Rest, Lucca Carriage Plaza E 1983 Gus Gianos Family Partnership 25,500 0 0% $0.00 $0.00 The Webb 2001 W Main St Peter Gianos Cayman’s Center on Main (Downtown Center) C 1965 Retail Investors, Inc. 107,000 0 0% $7.50 $0.00 Firestone 500 Main St Perry Trout Sunflower Market Colonial Estates C Ren. 1988 Equity Commercial Realty, LLC 104,051 23,000 22.10% $9.00 $12.00 Value Foods 12th Ave SE & E Lindsey St Mark Hyde East Moore Shopping Center D 2006 Grace Commercial 24,484 0 0% $8.50 $0.00 Dollar General 406 S Eastern Ave Mary Grace/Larry Emmer Cleveland Co. Health Dept. Empire Plaza D 2006 DGM Real Estate Services 30,000 5,960 19.87% $12.00 $14.00 Subway Norman Dana L. Hare Acapulco Mexican Restaurant Fritts Farm A 2011 TBP LLC Development 293,550 0 0% $24.00 $26.00 Home Depot

2119 Riverwalk Drive Terry Fritts Target M W Heisman Square D 1999 CBRE 93,000 7,150 7.69% $13.00 $15.00 Homeland oo est 12th Ave SE & E Alameda St Stuart Graham At the Beach

Hollywood Center C 1964 Foreman Properties 127,600 1,500 1.18% $0.00 $0.00 Homeland r e r man

R –CENT 1600 W Lindsey St Lynn Foreman Hancock Fabric

Malibu Shopping Center E 2005 Gerald Gamble Co. 27,000 3,700 13.70% $8.00 $8.00 Advance America Cash o -N 824 NW 12th St Gerald Gamble Armstrong McCall Merkle Creek D 1985 Equity Commercial Realty, LLC 32,000 3,500 10.94% $13.50 $15.55 Play It Again Sports r man

R E–N o 2203 W Main St Gayla Artman Tan & Tone America

AL Moore Towne Center D 2005 Domain Commercial, LLC 35,000 2,434 6.95% $17.00 $0.00 McAlester’s I-35 & SW 19th St Micah Alcorn Mazzios Pizza New City Center C 1963/98 Precor Ruffin, LLC 181,170 17,343 9.57% $7.00 $11.00 Supermercados Morelos MOO 605 N Moore Ave. Rick Pritchett Hyatt Normandy Creek C 1974 Raptor Properties 107,366 10,718 9.98% $10.00 $0.00 Hastings Books 2200 W Main St Heidi Vanlandingham Party Galaxy Park On Main D 1982 Huettner Properties 68,045 2,000 2.94% $8.00 $12.00 POM Executive Suites 36th Ave SW & W Main St Debby Busking Moto Photo Parkway Plaza B 1996 Zamias Services, Inc. 375,000 16,484 4.40% $12.00 $15.00 Barnes & Noble Ed Noble Parkway Carolyn Kellogg Bed Bath & Beyond Riverwalk Centre E 2000 CBRE 159,127 0 0% $16.00 $0.00 Kohl’s I-35 & SW 19th St Ryan Storer Gordman’s Riverwalk Plaza E 2000 Precor Ruffin, LLC 26,939 1,326 4.92% $15.00 $15.00 Midwest Regional Hospital 2109-2139 Riverwalk Dr Rick Pritchett Integris Physical Therapy Riverwalk Shops D 2006 EquityCommercial Realty, LLC 34,000 3,000 8.82% $0.00 $16.50 Alfredo’s 192713 Service Rd Mark Hyde Robinson Crossing C 1986/89 Brady’s Properties 118,000 27,240 23.08% $12.00 $14.00 Robinson Crossing Theatre 6 1300 N Interstate Dr Ali Ghaniabadi Papa Murphy’s Pizza Shops @ Moore Power Center C 2007 CBRE 568,679 52,108 9.16% $18.00 $24.00 Office Depot I-35 & SE 19th St Mark Inman Best Buy Silver Leaf D 1985 Bright Star Realty 88,097 6,000 6.81% $0.00 $0.00 Silver Leaf Furniture SE 12th St & S Eastern Ave Sun Lee Family Dollar Sooner Fashion Mall B 1976/88/99 General Growth Properties 503,851 0 0% $0.00 $0.00 Dillard’s I-35 & W Main St Steve Hughes Sears Sooner Shopping Center D 1966 Ultra-Thin 50,000 3,000 6% $5.00 $0.00 Moore Rexall Drugs NW 5th St & N Broadway St Joe Bryant Moore Tag Agency Sooner West Plaza D 1981 Equity Commercial Realty, LLC 64,500 1,500 2.33% $16.50 $18.50 Wright’s IGA 36th Ave SW & W Main St Gayla Artman Tuesday Morning Stubbeman Village E 1972 Equity Commercial Realty, LLC 33,475 3,471 10.37% $17.00 $0.00 Mr. Bill’s Elm Ave & Elmwood Dr Judy Hatfield Ratcliff’s Bookstore The Main Center D 2005 HEW Marketing, Inc. 106,307 0 0% $9.00 $9.00 Hobby Lobby N Flood Ave & W Main St Heather Warrington Mardel’s University North Park B 2008 Price Edwards & Company 813,617 7,910 0.97% $17.00 $22.00 Kohl’s, Target I-35 & W Robinson St Ev Ernst, Laci Jackson Academy West Port Shopping Center D 1980 City Properties 40,898 0 0% $10.50 $14.50 Moore Family Clinic 1200 N Santa Fe Ave C J See GFF Foods/Abuelitas Mexican Restaurant Moore-Norman Totals 4,838,644 268,199 5.54%

15 2012 Mid–Year Oklahoma City Retail Market Summary EASTERN OK COUNTY Submarket

SUBMARKET Summary EASTERN OK COUNTY SUBMARKET VACANCY 30% The Eastern Oklahoma County submarket continues to show steady improvement; 25% this study marks the fifth consecutive report that shows a reduction in vacancy. The submarket’s mid-year vacancy stands at 11.8 percent, down from 12.5 percent at year- 20%

end. The newer product in this submarket, led by Town Center Plaza, is doing quite well. 15% Town Center is expanding to add Dick’s Sporting Goods, and retailers there appear to 10% be performing quite well. Market vacancy is as high as it is because of the amount of older somewhat obsolete properties in the submarket that carry high vacancies. Five 5%

properties comprising nearly one-fifth of the market are over 30 percent vacant and 0% 2008 2009 2010 2011 2012 several more are over 20 percent vacant. Much of the improvement in market vacancy came from improvements at these older properties, such as the Gold’s Gym at Del Crest. Although, we don’t anticipate significant additional gains without at least some of these properties being repositioned. EASTERN OK COUNTY SUBMARKET ABSORPTION 40

Other than the expansion of Town Center Plaza, no significant new development is 20 foreseen in this submarket in the near term, although, given the success of the project, 0 developers are exploring possible sites. We believe the Eastern Oklahoma County -20 submarket could support additional new product if done correctly. -40

-60 y MOO (thousands of square feet) (thousands of square -80 nt

u -100

2008 2009 2010 2011 2012 o R E–N k co r man n o r easte

16 Boulevard Marketplace 2012 Mid–Year Oklahoma City Retail Market Summary EASTERN OK COUNTY Submarket

Construction Eastern OK County Class Built/Updated Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenants Town Center - Expansion 2012 Sooner Development 45,000 0 0% $0.00 $0.00 Dick’s Sporting Goods Construction Eastern OK County Totals 45,000 0 0%

Eastern OK County Class Built/Updated Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenants 23 Post Plaza D 1986 Nancy Brewer 35,000 2,000 5.71% $7.00 $0.00 Spencer’s Smokehouse NE 23rd St & N Post Rd Nancy Brewer Farmer’s Insurance Boulevard Market Place D 1983 Weingarten Realty 36,148 2,000 5.53% $0.00 $0.00 Subway 101 N Douglas Ave Andrew Clifton Papa Murphy Choctaw Plaza C 1974/84 Levy\Beffort 130,765 41,684 31.88% $5.59 $5.95 Williams Food 14407 NE 23rd St Michael Almaraz Chase Bank Decker Center D 1982 Brady’s Properties 33,500 2,108 6.29% $5.00 $8.00 Allied Medical 1200 S Air Depot Blvd Ali Ghaniabadi FedEx Office Del Crest Shops 1957/90 NAI Sullivan 78,150 28,900 36.98% $4.50 $0.00 Uptown Thrift SE 15th & Sunnylane Bob Sullivan Ace Hardware Dixon Plaza D 1978/80 Joe Leon 34,900 0 0% $8.00 $0.00 Shapes Gym SE 15th St & S Post Rd Joe Leon Farmer’s Insurance Eastgate Shopping Center D 1965 North Star 51,052 25,399 49.75% $4.00 $0.00 Family Dollar 1100 N Midwest Blvd Joseph Atkinson Gateway Plaza C 1985 Olde Town Properties 100,000 0 0% $10.00 $10.00 Dollar Tree SE 15th St & S Air Depot Blvd Karen King Hobby Lobby Greenhaw D 1960 Law Offices 33,000 0 0% $6.00 $0.00 Dollar General NE 10th & N Lee Ave Edward Lee Hartsdel D 1995 Charles Shadid 50,000 22,700 45.40% $3.00 $5.00 Highlander Laundry SE 44th St & S Bryant Ave Charles Shadid Beauty Supply Heritage Plaza D 1987 GBR Properties,Inc. 75,071 14,185 18.90% $9.75 $12.16 People’s Church, Edwards Jones 351 N Air Depot Blvd Bob Parker Ron’s Hamburgers Holiday Square D 1974 Pelfriz Investments 85,000 4,400 5.18% $4.00 $0.00 Dinner Club, Los Vaqueros 1100 S Air Depot Blvd Ray Pelfriz Karen’s Kids North East Shopping Center D 1970 Charles Shadid 100,000 31,200 31.20% $3.00 $5.00 Options Unlimited easte 1124 NE 36th St Charles Shadid Jackson Hewitt MOO Park Estates D 1952 Sheperd Properties,Inc. 38,000 10,250 26.97% $3.00 $0.00 Scott Cleaners NE 36th & N Kelly Ave Bill Sheperd Dollar General Park Plaza D 1993 Charles Shadid 38,268 0 0% $3.00 $4.00 Diva Beauty Supply r o R E–N 3700 Springlake Dr Charles Shadid Whirlwind Cleaners n o Sooner Market Place D 1995 Charles Shadid 63,013 14,400 22.85% $5.00 $7.00 Chelino’s E Reno Ave & N Sooner Rd Charles Shadid Speed Mart k co Spencer’s Center D 2000 Charles Shadid 40,000 5,100 12.75% $3.00 $5.00 Conoco r man NE 23rd St & N Spencer Rd Charles Shadid Discount Beauty Supply Sunnylane Plaza D 1979 Ken Park 84,888 2,000 2.36% $8.50 $9.00 Family Dollar u SE44th St & S Sunnylane Rd Ken Park Advance America nt Tan & Tone America Center E 2005 Ta Enterprises 25,300 2,000 7.91% $12.00 $15.00 Tan & Tone Tone America 1900 S Air Depot Blvd Moon Ta Pro Cuts, Gentle Dental y The Village D 1968 Michael Biddinger Real Estate 32,353 2,000 6.18% $6.00 $0.00 Rent A Center SE 29th St & S Vicki Ave Meagan Hall Town & Country C 1966/89 Weingarten Realty 138,000 4,500 3.26% $10.00 $0.00 Office Depot, City Trends E Reno Ave & N Air Depot Ave Daniel Goldware Big Lots, Ace Hardware Town Center Plaza B 2005 Sooner Investment 750,000 1,350 0.18% $24.00 $0.00 Target, J C Penney SE 29th St & S Air Depot Blvd Brad Goodwin Lowe’s, Kohl’s Uptown Plaza C 1958/72/06 Tice Realty 168,032 40,275 23.97% $10.00 $11.00 Langston’s, 7430 SE15th St Brandy Rundel Michael’s, Tuesday Morning Village Oak E 1981 Levy\Beffort 27,500 3,500 12.73% $6.00 $8.00 Lupe’s Restaurant 1000 S Douglas Blvd Carl Archinaco Papa John Pizza Westminster Shopping Center D 1963 V. C. Davidson 58,000 11,000 18.97% $3.00 $0.00 Angle’s Furniture NE 23rd St & S Westminster Rd Davidson B & B Surplus Eastern OK County Totals 2,305,940 270,951 11.75%

17 2012 Mid–Year Oklahoma City Retail Market Summary DOWNTOWN OKLAHOMA CITY RETAIL

experience. Future value will be in developing quality communi- Changing the ties that will continue to attract customers for the experience that they own in a space, rather than the extreme couponing that was Conversation accomplished. Creating an atmosphere where customers foster to Community a relationship each time they visit will be vital. Residential space paired with commercial spaces will continue to see increased By Allison Barta Bailey importance as customers make decisions about consumption by weighing heavily on their relationships with specific retail districts, communities and businesses. The last two years of retail market- ing have been a death spiral of sales The success of the Complete Street and Better Block concepts, tactics. Through the recession, retailers both nationally and in Oklahoma City, reassures me that the public continued to dig deep holes in their pricing in an effort to attract is ready to use their time and money in a modern retail environ- the little cash left in their customers’ very shallow pockets. Thank- ment. I’m even more encouraged when I view The Plaza District’s fully, these unsustainable practices are ending for modern minded recent Popularize profiles for two vacant properties in their retailers. Even retailers like JC Penney are attempting to —al- district. Popularize (popularize.com), a website that inserts public though somewhat unsuccessfully — abandon the constant cycle input into the development process, allows anyone (with a free of extreme discounts that large retailers have become known for. Popularize account) to contribute new ideas, comment or encour- With a massive marketing effort, they’ve overhauled of their pric- age posted ideas with the click of a Build-It button. Oklahoma City ing structure twice during the past year. is one of only three cities in the United States currently using this innovative platform. More than 40 business concepts were submit- Creative national retailers like J Crew are shifting emphasis to ted for these two buildings in less than a week. product storylines and social connections with design-minded shoppers and away from a cost-conscious conversation. Anthro- Whether designing new or reevaluating an existing space, think pologie is upping the game on their store atmosphere, including deeply about the experience the customer will have with your envi- regular blogger-focused events for shoppers loyal to specific store ronment. How are you consciously creating an emotional connec- locations and partnerships with like-minded small businesses. The tion with your customers? location in The Grove in Los Angeles recently hosted an Artist-in- Resident project with artist Rebecca Rebouche. She painted and created in a pop up art studio in their front window for two weeks this summer. Rebecca discussed her experience on her blog and Anthropologie found excellent content for their social media ac- counts during the event.

Popularize.com

These relationships will breed powerful customer loyalty and a competitive advantage.

Allison Barta Bailey is a retail consultant in Oklahoma City focus- ing on independent retailers and districts. She also manages a Artist Rebecca Rebouche (rebeccarebouche.com) local shopping directory, Shopcrawlr.com that recognizes creative local shops. More information on her consulting services can be This spring, Target launched their Shops concept, a set of shops found at www.BartaBailey.com. within the Target store showcasing curated collections from six in- dependent boutiques across the country. Although not as success- ful as their Missoni installation last year, The Shops created buzz without desperately waving a red tag. It also attempted to connect with local-business-loving shoppers who are prevalent now more than ever — a good move for Target.

I am hopeful that these campaigns, among many others, are an indication that the tide is turning permanently and the shop- ping experience will return to what I’ve always enjoyed it as… an

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