Oklahoma City

2008 Mid-Year Office Market Summary TABLE OF CONTENTS

Office Market Summary 1

Central Business District Submarket 2-3

Northwest Submarket 4-6

North Submarket 7-9

Midtown Submarket 10-11

West Submarket 12-13

Suburban Submarket 13

Medical Office Submarket 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 2008 Mid-Year Office Market Summary

The first half of 2008 provides ample evidence that the Oklahoma City vacancy rate in this area of town is 14.1%. Class A rental rates now stand office market remains robust despite a deteriorating national economy. at $21.17 per square foot, with the better buildings achieving rental rates in However, the healthy nature of the market could be tested in the coming the mid $20’s. months as national companies will inevitably curtail expansion plans for new and existing locations. Much of the local economy’s good health can be The North submarket also OKC Total Office Market Inventory attributed to the financial strength of local energy companies. However, that 20 experienced very positive results strength could actually work against the market as Devon Energy has recently Occupied SF Vacant SF despite having very little room left to announced that it will construct a 1.9 million square foot headquarters in the 15 improve. The submarket absorbed Central Business District. 20,000 square feet and its aggregate

10 vacancy rate fell from 5.6% to OKC Total Office Market Vacancy While that is great news for the 4.4%. The North submarket’s Class

35% city in general, there is downside feet) (millions of square A buildings are currently only 0.4% Market Vacancy CBD Vacancy Suburban Vacancy 5 30% risk for the market if it is unable vacant and the Class B buildings are to absorb the 800,000 square feet only 3.3% vacant, making better 25% 0 or so Devon leaves behind in other '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 quality space in this area of town 20% downtown buildings. Fortunately, almost impossible to find. As you 15% the market has a 4-year head- might expect, rental rates in this submarket are on the rise. The average 10% start to deal with that problem, rental rate rose from $16.07 to $16.44 per square foot as landlords continue 5% but the market’s total absorption to feel more bullish and push rates upward. Class A space in this submarket

0% over the past 4 years has only been currently rents for $22.75 per square foot on average. '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 800,000 square feet and most of that absorption has occurred in the Moving forward into the remainder OKC Total Office Market Absorption north and northwest submarkets, not downtown. During that same four- of 2008, we anticipate the overall 500,000 year period the CBD has only absorbed 30,000 SF and that number would market will experience modest actually be negative if not for Devon’s own absorption of downtown space. improvement, but the national 400,000 It should be noted though that there has been other CBD absorption that is economy will temper the market’s 300,000 not reflected in our numbers because we only track multi-tenant properties potential growth. As noted earlier, 200,000 and not owner-occupied properties. In just the past twelve months the CBD the uncertainty of the global and received more good news when Sandridge Energy acquired the nearly half national economies will hinder 100,000 million square foot building that was formerly Kerr-McGee’s headquarters. the organic growth of national 0

That building has never been a part of our market report, but if it had sold companies with Oklahoma City -100,000 to investors whose goal was to lease it on a multi-tenant basis, it would have offices and all but put a stop to the 2004 2005 2006 2007 2008 had a crippling effect on the CBD submarket. opening of any new offices in our market. While we are experiencing economic conditions that are certainly an If our economy remains strong aberration compared to most areas, we are not completely insulated from OKC Total Office Rental Rates and the downtown area continues $20.00 Northwest North Suburban cutbacks by those companies that are not locally based. to grow as a place to live and not CBD West Midtown Suburban just work, the chances are good West for continued absorption in the Midtown downtown office market. So while $15.00 the market continues to be healthy North and the Devon announcement is, Northwest in general, great news for our city, CBD there’s a cautionary tale that bears $10.00 hearing and market indicators that 2004 2005 2006 2007 2008 bear watching as the 20th tallest building in the country rises outside our company’s windows.

During the first half of 2008 the total vacancy rate dropped from 14.9% to 14.6%; it’s lowest level since 1996. The Central Business District’s vacancy rate decreased from 25.8% to 24.9%, while the suburban market remained level at 9.2%.

The Northwest submarket, which is the largest in the suburbs, actually experienced a small degree of negative absorption (-18,000 SF) due to a new 42,000 SF building in the Gaillardia development being added to inventory. This submarket continues to remain strong however, as gains at other properties nearly offset the addition of new inventory. The Class A

Oklahoma City Metro area submarket map 1 2008 Mid-Year Oklahoma City Office Market Summary Central Business District Submarket

2008 Mid-Year CBD Vacancy 2008 mid-year CENTRAL BUSINESS DISTRICT REVIEW 35% • Aggregate vacancy rates decreased from 25.8% to 24.9% 30%

25% • Class A vacancy increased from 12.2% to 12.3% 20% • Class B vacancy decreased from 14.3% to 13.4% 15%

10% • Class C vacancy decreased from 58.6% to 56.6% 5% • Aggregate rental rates decreased from $14.61 per SF to $14.26 per SF 0% 2004 2005 2006 2007 2008 • Class A rates held steady at $17.08 per SF • Class B rates increased from $13.66 per SF to $13.71 per SF 2008 Mid-Year CBD Rental Rates by Class $19.00 Class A Class B Class C • Class C rates decreased from $13.00 per SF to $11.63 per SF

$17.00 • The CBD absorbed 44,000 SF in the first half of 2008

$15.00

$13.00

$11.00 2008 Year-End CENTRAL BUSINESS DISTRICT FORECAST

$9.00 2004 2005 2006 2007 2008 • Vacancy rates should continue to decrease in the remainder of 2008 • Rental rates will remain near current levels

2008 Mid-Year CBD Occupancy by Class 100%

80% Central Business District Business Central

60%

40%

20%

0% Class A Class B Class C

2008 Mid-Year CBD Absorption 100000

62000

24000

-14000

-52000

-90000 2004 2005 2006 2007 2008

2 Downtown Oklahoma City 2008 Mid-Year Oklahoma City Office Market Summary Central Business District Submarket

CBD Year Built Floors RSF Vacant SF Vacant % Rate CAF 100 Park Avenue Building 1923/64 12 99,752 7,882 8% $12.00 12% 100 Park Ave 101 Park Avenue Building 1936/74 14 197,042 71,604 36% $14.00 16.4% 101 Park Ave 20 N. Broadway 1981 19 307,388 0 0% $16.00 20% 20 N Broadway Bank of Oklahoma Plaza 1972 16 233,808 15,636 7% $14.50 20% 201 Robert S Kerr Ave Chase Tower 1971 36 517,454 16,500 3% $14.25 15% 100 N Broadway City Place 1931/85 33 292,304 67,387 23% $12.00 14% 204 N Robinson Ave Corporate Tower 1980 14 277,849 7,095 3% $16.00 17.6% 101 N Robinson Ave Court Plaza 1923/79 10 78,381 29,030 37% $10.50 14% 228 Robert S Kerr Ave Dowell Center 1926 20 190,000 190,000 100% $9.50 15% 134 Robert S Kerr Ave First National Center 1931/74 28 972,267 553,073 57% $12.00 14% 120 N Robinson Ave Central Business District Hightower Building 1929 10 107,152 15,000 14% $14.00 15% 105 N Hudson Ave Leadership Square 1984 21N/16S 735,514 157,281 21% $17.00 20% 211 N Robinson Ave Oklahoma Tower 1982 31 568,960 52,405 9% $17.00 20% 210 Park Ave One North Hudson 1931/81 11 73,000 17,065 23% $10.00 12% 401 W Sheridan Ave Robinson Plaza 1992 10 183,000 43,000 23% $11.00 0% 50 N Robinson Ave Robinson Renaissance 1927/87 12 174,840 29,467 17% $13.00 25% 119 N Robinson Ave Sonic Building 2003 4 100,654 953 1% $21.50 8.6% 300 Johnny Bench Dr The Reserve 1922/97 2 59,284 14,631 25% $16.00 20% 226 Dean A McGee Ave CBD Totals 5,168,649 1,288,009 24.9% $14.26

3 2008 Mid-Year Oklahoma City Office Market Summary Northwest Submarket

2008 Mid-Year Northwest Vacancy 2008 mid-year Northwest submarkeT REVIEW 15% • Aggregate vacancy rates increased from 9.5% to 10.4% 12% • Class A vacancy decreased from 16.1% to 14.1% 9% • Class B vacancy increased from 6.9% to 9.2% 6% • Class C vacancy increased from 8.4% to 8.5% 3% • Aggregate rental rates increased from $15.95 per SF to $16.54 per SF 0% 2004 2005 2006 2007 2008 • Class A rental rates increased from $20.49 per SF to $21.17 per SF • Class B rental rates increased from $14.99 per SF to $15.38 per SF 2008 Mid-Year Northwest Rental Rates by Class $25.00 Class A Class B Class C • Class C rental rates increased from $12.31 per SF to $12.98 per SF • The Northwest Oklahoma City Submarket experienced negative

$20.00 absorption of 18,000 the first half of 2008

$15.00 2008 year-end northwest submarket FORECAST • Vacancy rates should drop slightly in the second half of the year as $10.00 2004 2005 2006 2007 2008 this submarket remains strong but also deals with the addition of approximately 30,000 SF of new construction Northwest 2008 Mid-Year Northwest Occupancy by Class • Quoted rates will rise due to such a small amount of available 100% Class A and B space and the cost of new construction

80%

60%

40%

20%

0% Class A Class B Class C

2008 Mid-Year Northwest Absorption 200,000

150,000

100,000

50,000

0

-50,000 2004 2005 2006 2007 2008

4 The Caliber Center 2008 Mid-Year Oklahoma City Office Market Summary Northwest Submarket

Northwest Submarket Year Built Floors RSF Vacant SF Vacant % Rate CAF 14201-14301 Caliber Drive 2007 2 81,520 0 0% $23.00 17.2% 14201-14301 Caliber Drive 2525 Expressway 1974 6 82,110 6,280 8% $12.00 12.6% 2525 NW Expressway 4100 Perimeter Center 1982 3 47,317 3,406 7% $13.00 15% 4100 Perimeter Center Dr 4101 Perimeter Center 1982 3 47,317 4,726 10% $13.00 15% 4101 Perimeter Center Dr 4141 Northwest Expressway 1982 3 46,464 0 0% $11.00 16% 4141 Northwest Expressway 4200 Perimeter Center 1981 2 61,327 1,432 2% $13.00 15% 4200 Perimeter Center Dr 4801 Gaillardia 2000 3 71,867 0 0% $24.00 15% 4801 Gaillardia Parkway 4811 Gaillardia 2008 3 41,451 41,451 100% $25.00 15% 4811 Gaillardia Parkway 5100 Brookline 1974 10 107,496 2,991 3% $16.00 15% 5100 N Brookline Ave 5909 NW 1982 7 101,146 19,919 20% $14.00 13% 5909 NW Expressway American Cancer Society 2001 1 45,000 0 0% $16.50 0% 8400 Silver Crossing Atrium Towers 1980 6 156,106 8,471 5% $15.00 15% 3501-3503 NW 63rd ST

Avaya Building 1998 1 57,000 0 0% $15.00 0% Northwest 14400 Hertz Qual Springs Parkway Bradley Square 1984 1 30,000 900 3% $15.00 10% 2932 NW 122nd St Brookline Offices 1971 1 40,920 13,228 32% $10.00 0% 6051 N Brookline Ave Center 3000 1972 3 104,500 12,894 12% $13.25 12% 3000 United Founders Blvd Chase Bank Building 1981 4 41,943 17,654 42% $15.50 15% 6303 N Portland Ave Chase Park 1981 2 30,281 8,269 27% $13.50 12% 4323 NW 63rd St Commerce Center South 1982 3 65,857 0 0% $13.50 11% 9520 N May Ave Coppertree Centre 1982 3 26,928 1,405 5% $15.00 10% 3727 NW 63rd St Cross Rock Place 1992 2 50,500 9,824 19% $22.00 12% 3595 W Memorial Rd Cross Rock Plaza 1 1984 3 52,090 0 0% $18.00 11% 13801 Wireless Way Dobson Communications 2001 3 144,420 0 0% $24.00 16% 14101-14201 Wireless Way Enterprise Plaza 1981 3 92,542 0 0% $16.00 15% 5600 N May Ave FBI Building 1999 1 73,380 0 0% $17.00 0% 3301 W Memorial Ave Fifty-Six Expressway Place 1982 3 58,340 8,737 15% $12.50 11% 5601 NW 72nd St Five Corporate Plaza 1980 3 49,486 41,856 85% $15.00 15% 3625 N.W. 56th Foundation Medical Center 2005 2 51,849 19,214 37% $20.00 12% 14000 N. Portland Gaillardia II 2007 2 42,970 8,745 20% $22.00 17% 4701 Gaillardia Parkway Grand Centre 1982 5 101,217 5,540 5% $16.50 15% 5400 NW Grand Blvd Hartford Insurance 1999 1 100,000 0 0% $16.00 0% 7800 NW 85th Terr IBC Bank Building 1980 3 69,376 0 0% $15.00 12% 3601 NW 63rd St

5 2008 Mid-Year Oklahoma City Office Market Summary Northwest Submarket

Northwest Submarket con’t. Year Built Floors RSF Vacant SF Vacant % Rate CAF Jamestown Office Park 1972/79 2 78,283 650 1% $12.50 10% 3037 NW 63rd St Lakepark Tower 1983 6 103,084 40,000 39% $14.00 15% 6525 N Meridian Ave Lakepointe Towers 1981 6 177,746 18,555 10% $14.50 13% 4005-4013 NW Expressway Lakepointe West 1982 6 85,246 7,146 8% $14.00 12.6% 4045 NW 64th St Lakeshore Tower 1982 3 29,761 1,265 4% $13.00 15% 4301 NW 63rd St Landmark Towers 1969/72 10 290,000 12,509 4% $14.00 12% 3535-3545-3555 NW 58th St Mercury Insurance Building 1986 2 100,103 0 0% $12.50 12.5% 7301 NW Expressway Mutual Assurance Building 1999 2 40,000 3,147 8% $18.00 12% 3121 Quail Springs Parkway Nichols Hills Tower 1976/82 4 28,604 1,304 5% $18.00 11% 6512 Avondale Dr North Shore Office Plaza 2001 5 55,570 0 0% $20.50 15% 10900 Hefner Dr Oil Center 1973/78 13 249,654 24,522 10% $16.00 13% 2601 NW Expressway One Corporate Plaza 1979 1 63,011 0 0% $15.50 15% 3525 NW 56th St Portland Plaza 1969 3 35,425 4,418 12% $13.00 14% 5700 N Portland Ave Quail Creek Commerce Center 1998 1 128,500 0 0% $17.50 0% 3201 Quail Springs Parkway Quail Creek North 1973 2 34,780 258 1% $12.00 15% 11032 Quail Creek Rd Quail Ridge Tower 1975 4 46,950 11,621 25% $13.00 16.5%

Northwest 11212 N May Ave Quail Springs Parkway Plaza I & II 1986 6 321,312 12,174 4% $21.00 14% 14000 Quail Springs Parkway Quail Springs Professional Building 2002 2 25,420 0 0% $17.50 16% 14313 N May Ave Rees Plaza at East Wharf 2002 3 42,000 0 0% $21.00 15.3% 9211 Lake Hefner Parkway Rockwell Office Center 1982 2 30,000 6,231 21% $12.00 13% 8621 N Rockwell Ave Sprint PCS Building 1999 1 90,000 0 0% $18.00 0% 8525 Silver Crossing St. Martins Building 1990 2 59,712 2,700 5% $15.00 13% 9020 N May Ave Summit Executive Building 1975 5 50,000 2,868 6% $12.00 13% 5929 N May Ave The Caliber Center 1983 10 276,246 107,491 39% $20.00 15% 3817 NW Expressway Three Corporate Plaza 1980 3 49,920 10,577 21% $15.00 15% 3613 NW 56th St Two Corporate Plaza 1982 3 85,551 0 0% $15.50 14.5% 5555 NW Grand Blvd Union Plaza 1982 18 247,379 17,519 7% $19.00 14% 3030 NW Expressway Williams Sonoma 1998 1 36,000 0 0% $16.00 0% 7720 NW 84th St Northwest Submarket Totals 5,032,977 521,897 10.4% $16.54

Northwest Construction Year Built Floors RSF Vacant SF Vacant % Rate CAF 4727 Gaillardia Dec 2008 3 30,000 30,000 100% $27.00 n/a 4727 Gaillardia Parkway Northwest Construction Totals 30,000 30,000 100% $27.00

6 2008 Mid-Year Oklahoma City Office Market Summary North Submarket

2008 Mid-Year North Vacancy 2008 mid-year North submarket REVIEW 15% • Aggregate vacancy rates decreased from 5.6% to 4.4% 12% • Class A vacancy remained at 0.4% 9% • Class B vacancy decreased from 3.9% to 3.3% 6% • Class C vacancy decreased from 17.5% to 14% 3% • Aggregate rental rates increased from $16.07 per SF to $16.44 per SF 0% 2004 2005 2006 2007 2008 • Class A rental rates remained at $21.75 per SF • Class B rental rates increased from $15.34 per SF to $15.87 per SF 2008 Mid-Year North Rental Rates by Class $25.00 Class A Class B Class C • Class C rental rates decreased from $12.36 per SF to $12.12 per SF • The Oklahoma City North Submarket experienced absorption of 20,000

$20.00 SF during the first half of 2008

$15.00 2008 year-end north submarket fORECAST

• Vacancy rates should continue to drop as local energy companies North $10.00 2004 2005 2006 2007 2008 continue to acquire space and buildings • Rental rates will show a slight increase

2008 Mid-Year North Occupancy by Class 100%

80%

60%

40%

20%

0% Class A Class B Class C

2008 Mid-Year North Absorption 200,000

150,000

100,000

50,000

0

-50,000 2004 2005 2006 2007 2008

7 The Waterford 2008 Mid-Year Oklahoma City Office Market Summary North Submarket

North Submarket Year Built Floors RSF Vacant SF Vacant % Rate CAF 1001 Wilshire 2003 4 43,316 0 0% $19.50 13% 1001 W Wilshire Ave 50 Penn Place 1973 16 178,315 11,091 10% $17.00 12% 5100 N Pennsylvania Ave 6,319 (S) 5100 Circle Building 1982 6 74,799 1,984 3% $14.00 14% 5100 N Classen Blvd 7 & 9 Broadway Executive Park 1979 1 29,201 0 0% $15.50 0% NW 63rd St and Broadway Broadway Plaza 1982 3 38,726 0 0% $13.50 13% 16 NW 63rd St Broadway Sixty-Eight 1979 3 40,000 0 0% $14.00 14% 6801 N Broadway Central Park One 1982 6 113,134 0 0% $17.00 14% 525 Central Park Dr Central Park Two 1984 6 124,463 0 0% $17.00 14% 515 Central Park Dr Chase Bank Building 1970 5 39,367 2,531 6% $15.00 9% 1200 NW 63rd St Columbus Square 1982 3 36,559 0 13% $15.00 10% 1001 NW 63rd St 4,784 (S) Five North Broadway 1972 3 44,805 0 0% $16.00 15% 6601 N Broadway Glenbrook Centre West 1972 5 52,905 8,725 16% $15.00 10% 1140 NW 63rd St Harvey Parkway 1982 6 98,807 9,017 9% $16.00 17% 301 NW 63rd St Lincoln Plaza Office Park 1970 2 238,300 22,206 9% $11.00 12%

North 4545 N Lincoln Blvd Market Center-Indian Health Services 2008 2 46,368 0 0% $26.75 6% 701 Market Dr MidFirst Plaza 1982 6 95,043 0 0% $13.00 12% 501 NW Expressway Nichols Hills Executive Center 1981 2 53,996 0 0% $18.50 14% 1000 W Wilshire Ave Northgate 1974 2 48,704 13,000 27% $10.00 0% 4010-4020-4024-4030 N Lincoln Blvd One Benham Place 1983 8 152,959 4,557 3% $17.50 15% 9400 N Broadway One Broadway Center 1980 3 34,984 0 0% $14.00 9% 100 NW 63rd ST One Broadway Executive Park 1979 3 58,832 2,682 5% $15.50 12.3% 201 NW 63rd St One Grand Park 1982 6 100,694 0 0% $15.00 14% 777 NW Grand Blvd One Western Plaza 1972 2 50,948 9,968 20% $15.00 16.5% 5500 N Western Ave Paragon Building 1981 5 110,791 7,769 7% $15.50 15% 5801 N Broadway Pavilion Building 1974 3 39,895 3,035 8% $12.50 12% 6701 N Broadway Penn Park 1973 2 78,643 11,921 15% $13.00 13% 5001-5005-5009-5015 N Pennsylvania Ave Regency Center 1982 5 67,272 0 0% $15.00 12% 701 NW 63rd St Registry 1980 2 93,176 5,871 6% $14.00 15% 2200 NW 50th St Richmond Square 1982 2 27,606 2,676 10% $15.00 12% 4900 Richmond Square

8 2008 Mid-Year Oklahoma City Office Market Summary North Submarket

North Submarket con’t. Year Built Floors RSF Vacant SF Vacant % Rate CAF Santa Fe North 1981 4 44,000 0 0% $14.50 14% 6 NE 63rd St The Tower 1984 22 299,137 1,098 0% $22.00 18% 1601 NW Expressway Three Broadway Executive Park 1977 3 45,256 1,802 4% $15.50 10% 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 1,837 4% $15.50 11.4% 205 NW 63rd St Waterford A 1983 4 147,000 0 0% $21.50 16% 6301 Waterford Blvd Waterford B 1983 2 35,468 1,463 4% $21.50 16% 6303 Waterford Blvd Waterford C 1984 2 81,575 0 0% $21.50 16% 6305 Waterford Blvd Waterford D 1984 2 34,087 0 0% $21.50 16% 6307 Waterford Blvd North Totals 3,052,149 134,336 4.4% $16.44

North Construction Year Built Floors RSF Vacant SF Vacant % Rate CAF The Commons on Broadway Q1 2009 3 50,188 50,188 100% $23.00 n/a 11600 Broadway Ext

North Construction Totals 50,188 50,188 100% $23.00 North

9 2008 Mid-Year Oklahoma City Office Market Summary West Submarket

2008 Mid-Year West Vacancy 2008 mid-year West submarkeT REVIEW 20% • Aggregate vacancy rates increased from 17.2% to 18.7% 15% • Class B vacancy totals increased from 14.2% to 17.9%

10% • Class C vacancy totals decreased from 23.0% to 20.3%

5% • Aggregate rental rates decreased from $11.87 per SF to $11.82 per SF • Class B rental rates remained at $11.94 per SF 0% 2004 2005 2006 2007 2008 • Class C rental rates increased from $11.72 per SF to $11.57 per SF • The West Oklahoma City Office Market experienced negative 2008 Mid-Year West Rental Rates by Class absorption of 9,000 SF in the first half of 2008 $13.00 Class B Class C

$12.00 2008 year-end West submarket FORECAST • Vacancy rates should remain near current levels in the second half of 2008

$11.00 • Rental rates in the will also stay near current levels

$10.00 2004 2005 2006 2007 2008 West

2008 Mid-Year West Occupancy by Class 100%

80%

60%

40%

20%

0% Class B Class C

2008 Mid-Year West Absorption 15,000

5,000

-5,000

-15,000

-25,000 2004 2005 2006 2007 2008

10 The Parkway 2008 Mid-Year Oklahoma City Office Market Summary West Submarket

West Year Built Floors RSF Vacant SF Vacant % Rate CAF 300 Meridian Place 1982 2 77,559 4,160 21% $12.50 11% 300 N Meridian Ave 12,400 (S) Bank 2 Tower 1975 7 58,598 5,358 9% $12.50 12% 909 S Meridian Ave Corporate West One 1980 3 37,978 12,645 33% $12.00 10% 5208 W Reno Ave Corporate West Two 1983 3 39,000 0 0% $9.00 8% 309 S Ann Arbor Ave Metro Office Park 1981 3 60,750 18,000 30% $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 16,405 17% $13.50 15% 1300 S Meridian Ave Westpark Office Center 1986 1 73,607 5,865 8% $12.00 0% 715 S Metropolitan Ave Will Rogers Office Park 1 1984 1 54,170 27,158 50% $13.50 16% 4400 Will Rogers Parkway Will Rogers Office Park 2 1985 1 46,748 0 0% $11.00 10% 4350 Will Rogers Parkway West Totals 587,630 109,991 18.7% $11.82 West

11 2008 Mid-Year Oklahoma City Office Market Summary Midtown Submarket

2008 Mid-Town Midtown Vacancy 2008 mid-year midtown submarkeT REVIEW 15% • Aggregate vacancy rates decreased from 13.1% to 11.6% 12% • Class B vacancy rates decreased from 14.1% to 12.6 % 9% • Class C vacancy rates decreased from 2.9% to 1.4% 6% • Aggregate rental rates increased from $12.88 per SF to $12.93 per SF 3% • Class B rental rates remained at $13.04 per SF 0% 2004 2005 2006 2007 2008 • Class C rental rates increased from $11.35 per SF to $11.78 per SF • The Midtown Submarket experienced absorption of 19,000 SF 2008 Mid-Year Midtown Rental Rates by Class during the second half of 2008 $14.00 Class B Class C Class C

Class B $13.00 2008 year-end midtown submarket FORECAST

$12.00 • Vacancy rates will remain low as more users recognize Midtown as the most economical submarket $11.00 • Rental rates will remain at or near current levels $10.00 2004 2005 2006 2007 2008 Midtown 2008 Mid-Year Midtown Occupancy by Class 100%

80%

60%

40%

20%

0% Class B Class C

2008 Mid-Year Midtown Absorption 60,000

40,000

20,000

0

-20,000

-40,000 2004 2005 2006 2007 2008

12 The Cameron Building 2008 Mid-Year Oklahoma City Office Market Summary Midtown Submarket

Midtown Submarket Year Built Floors RSF Vacant SF Vacant % Rate CAF 2000 Classen Center 1966/76 6 318,605 22,000 7% $13.50 10% 2000 N Classen Blvd 3700 Classen Building 1980 2 52,800 7,000 13% $11.00 13% 3700 N Classen Blvd 3800 Classen Building 1982 3 52,800 4,300 8% $11.00 13% 3800 N Classen Blvd 4801 Classen Building 1974 2 33,151 1,554 5% $11.25 0% 4801 N Classen Blvd Cameron Building 1955/57 5 81,493 0 0% $12.00 10% 2901 Classen Blvd. Santa Fe Building 1954/82 4 55,203 0 0% $9.00 10% 3814 N Santa Fe Ave Shepherd Mall Office Complex 1964/95 2 640,000 28,000 17% $13.50 0% 2401 NW 23rd St 80,000 (S) Midtown Totals 1,234,052 142,854 11.6% $12.93

2008 Mid-Year Oklahoma City Office Market Summary Suburban Submarket Midtown - Suburban

2008 Mid-Year Suburban Rental Rates by Class 2008 mid-year Suburban submarkeT REVIEW $18.00 Northwest North West Midtown • Aggregate vacancy rates remained at 9.2% $16.00 • Class A vacancy decreased from 11.1% to 9.9%

$14.00 • Class B vacancy increased from 7.7% to 8.5%

$12.00 • Class C vacancy decreased from 2.6% to 11.1% • Aggregate rental rates increased from $15.36 per SF to $15.78 per SF $10.00 2004 2005 2006 2007 2008 • Class A rental rates increased from $20.89 per SF to $21.35 per SF • Class B rental rates increased from $14.56 per SF to $14.91 per SF • Class C rental rates increased from $12.19 per SF to $12.45 per SF 2008 Mid-Year Suburban Absorption 400,000 • Suburban Oklahoma City experienced absorption of 12,000 SF during the first half of 2008

300,000

200,000 2008 year-end SUburban submarket FORECAST

100,000 • Suburban rental rates will continue to climb • Suburban vacancy rates will decrease 0 2004 2005 2006 2007 2008 • Some new construction will add approximately 30,000 SF during the second half of 2008

Suburban Submarket Totals 9,906,808 909,078 9.2% $15.78

OKC Office Market Totals 15,075,457 2,197,087 14.57% $15.26

13 2008 Mid-Year Oklahoma City Office Market Summary Medical Office Submarket

In our company’s ongoing effort to provide the most complete and accurate market information available, we have expanded our report to include medical office buildings in excess of 25,000 square feet. The medical office market is currently more dynamic than ever with numerous projects that have been completed in the past few years and many more either under construction or on the drawing board. It is our intent to track this sector as closely as we do the general office market so that we can provide our clients with both current and historical data as we go forward. We hope you appreciate this additional service and find it useful.

Medical Office Submarket Year Built Floors RSF Vacant SF Vacant % Rate CAF Deaconess Medical North 1996 3 55,209 5,956 11% $19.00 0% 5701 N Portland Ave Deaconess Medical South 1991 6 119,726 4,347 4% $19.00 0% 5401 N Portland Ave McAuley Physician Office 1986 4 42,246 0 0% $17.00 0% 4205 McAuley Blvd NeuroScience Institute 1998 3 54,558 0 0% $19.00 0% 4120 W Memorial Rd Northwest Medical Center 1981 6 82,664 7,178 9% $16.00 13.8% 3330 NW 56th St Parkway Medical Center 2008 2 27,000 2,500 9% $19.00 15% 14100 Parkway Commons Dr Parkway Medical Center 1980 2 44,419 0 0% $19.00 10% 3500 NW 56th St Physicians & Surgeons Bldg 1962 11 75,000 6,000 8% $13.00 0% 1211 N Shartel Ave Physicians Bldg - A 1970 9 68,349 0 0% $15.50 14% 3435 NW 56th St Physicians Bldg - B 1986 9 128,030 3,786 3% $18.00 14% 3433 NW 56th St Physicians Bldg - C 1975 8 64,918 278 0% $15.50 14% 3400 NW Expressway Physicians Bldg - D 1994 8 116,108 963 1% $18.00 14% 3366 NW Expressway Plaza Physician Offices 1992 6 100,082 1,853 2% $18.00 0% 4140 W Memorial Rd Presbyterian Professional Bldg 1995 4 78,554 0 0% $18.00 15% 711 Stanton L Young Quailbrook Medical 2008 3 36,000 19,000 53% $20.00 15% 13901 McAuley Blvd SMC Medical Office Bldg 1967 3 29,054 773 3% $13.00 0% 4200 S Douglas Ave SMC Medical Plaza 1994 5 58,648 0 0% $16.00 0% 4221 S Western Ave St. Anthony ASC 1998 2 36,551 0 0% $19.25 19.3% 6205 N Santa Fe Ave St. Anthony MOB 2008 5 78,089 8,769 11% $21.50 16.9% NW 9th St & N Dewey Ave St. Anthony North POB 1990 2 28,281 0 0% $16.50 14% 6201 N Santa Fe Ave St. Anthony Prof Bldg 1987 6 83,898 0 0% $17.00 11% 608 NW 9th St Tower Physicians Offices 1974 10 117,136 2,551 2% $16.00 0% 4200 W Memorial Rd Medical Office Totals 1,524,520 63,954 4.2% $17.44

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