Oklahoma City 2017 Mid-Year Retail Market Summary TABLE of CONTENTS

Oklahoma City 2017 Mid-Year Retail Market Summary TABLE OF CONTENTS

Retail Market Summary 1-2

Submarket Map 3

Quick Hits 4-5

North Submarket 6-7

Northwest Submarket 8-9

South Submarket 10-11

Edmond Submarket 12-13

West-Central Submarket 14-15

Moore / Norman Submarket 16-17

Eastern OK County Submarket 18-19

Retail Sales Summary 20

Walkable Retail 21

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 2017 Mid-Year Retail Market Summary

THE RETAIL MARKET

Numbers matter in real estate; this influences in the retail market: One, survey is built on the premise that retailers are forgetting how to retail. The numbers matter. But, in this instance, best retailers have always been good at the numbers do not begin to convey the staying in contact with their customers. scale of change in the retail industry nor A big part of which is understanding do they reveal the anxiety that underlies them well enough to know what they the market. want in terms of merchandise and how to best sell it to them. In today’s Overall market vacancy improved world of big data, that should be easy during the first six months of the year enough, but many of the problem to 9.8 percent from 10.6 percent at year- retailers have failed their customers. end. That implies a relatively healthy Does anyone think Gordman’s, Radio and improving market. And there is Shack or Payless has done a good job a lot out there to be pleased about. of this? Two, competition from the The general economy is still holding internet is real and unremitting – which up even with continued low energy really means that Amazon is coming for prices. There are a lot of tenants you. But, as we’ve discussed before, has been growing rapidly since the expanding; most space that has been this is much more nuanced than internet 2009 – 2010 recession. Rents and vacated to date has been backfilled. versus brick & mortar. The two are occupancies are up and there has been The market saw positive absorption morphing together…Amazon and other significant new construction. It is time of nearly 600,000 square feet. Rents, internet retailers are opening brick & for a correction. A correction always particularly for new space, are at all time mortar stores (and need them to reach involves store closures and reduced highs. If only we could stop there. The more customers and raise margins) tenant activity; the amount of leveraged good news has a dark backdrop. Over while, at the same time, brick & mortar buyouts over the last 10 years has 5,000 stores closed so far nationally in stores are racing to enhance their web exacerbated this problem by limiting 2017 and more on the way. Negligible presence both in terms of sales and retailers margin of error in a downturn. income growth locally. Local tenant marketing. This dynamic is changing struggles. Fierce competition from the way people shop. Virtually everyone You add these three major influences internet retailers. browses on the internet, regardless of together and you can begin to where they end up buying a product. understand the level of disruption we So, where does that leave us. Are we in Convenience and price have increased are seeing today. We believe it will a normal cycle or is it the end of retail as importance; the experience is more most likely take another 2 – 3 years to we know it? The truth, as it often does, important. Three, we are in the middle sort out and somewhat normalize the lies in between. We see three broad of a normal real estate cycle. Retail retail market. In the meantime, the

OKC TOTAL RETAIL MARKET VACANCY OKC TOTAL RETAIL MARKET INVENTORY

12% 50 GLA SF Freestanding SF 10% 40

8% 30 6% 20 4% (millions of square feet) (millions of square 10 2%

0% 0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

1 market will be very uneven with some last 5 to 7 years, particularly with new saw the results of this with Homeland retailers doing well and others struggling development, out-parcels in front of big & Buy for Less each closing two stores or going out of business. Clear winners boxes and mixed use developments. in 2016. We expect to see fewer new in the interim will be value-oriented Rents for small shop space in these stores this year as the market adjusts tenants, health/personal fitness tenants, developments range from $25 to $35 but the pressure will be on the weaker and tenants who figure out how to per square foot with some rents pushing chains. enhance the shopping experience. $40 per square foot. This often prices Tenants that are expected to struggle out local tenants. It also raises the Movies include fashion tenants, boutiques, and question whether or not national tenants The movie business is about to change department stores. Then there will be can generate the sales to justify these in a big way in Oklahoma City primarily certain classes of tenants – service & rents over time. Our sense is that from the change in state statute allowing grocery for example – that will see less they can but it is probably a pretty thin the sale of liquor in theaters. Warren, of an effect from current changes. Here segment of the market. It will also test who sold their existing Moore theater to is a look at how we expect a few specific our market when some of these spaces Regal, has announced a north Eastern sectors of the market will fare in this come back to the market as second and a Midwest City location. Flix is environment: generation space. poised to enter our market. Expect Alamo Draft House or similar concepts Locals Development to follow. This will put pressure on many One group of tenants getting caught Two significant new developments of the existing theaters to upgrade. All- in the retail crossfire is local tenants. came on line in 2016, The Market at in-all, the next few years should be a This group is always prone to greater Czech Hall anchored by Ross and boon to movie-goers and a source of swings in performance given consumer Academy and Sooner Rose in Midwest growth for retail. sentiment, changes in disposable City anchored by Academy and Hobby income, etc. All the current bad news Lobby. Expect the uncertainty in the Survey Footnote: (you don’t hear much of the good news) market to put most larger development Our survey tracks 29.8 million square has created an environment where on hold for now. There will continue to feet in 255 buildings of over 25,000 many are being more conservative be some strip center development and square feet and 15.3 million square and shoppers are more value driven. the expansion of existing centers, but feet of stand-alone buildings for a total Most local tenants have less flexibility limited large-scale construction. market of 45.1 million square feet. in this environment with staffing, inventory management and marketing. Grocery There continues to be a significant Add higher rents, particularly in infill Oklahoma City has seen nearly 1.5 number of smaller strip centers in the locations, and many local tenants are million square feet of grocery added market (under 25,000 s.f. in size). We getting squeezed. in the last three years led by Walmart, would estimate there are close to 5.7 but also Aldi, Natural Grocers, and million square feet of these properties Rents Sprouts. Add four new 90,000 square in the market. Oklahoma City has historically had foot Winco’s to that equation and a some of the lower retail rents in the new Edmond Crest and that’s a lot of country. That has changed in the additional grocery square footage. We

OKC TOTAL RETAIL MARKET ABSORPTION

0.6

0.5

0.4

0.3

0.2 (millions of square feet) (millions of square

0.1

0.0 2013 2014 2015 2016 2017

GLA SF Vacant SF Vacant % OKC Retail Market Totals 29,758,040 2,908,569 9.8% RETAIL SUBMARKET MAP

3 National Market Vacancy rose to 10% in 2nd Quarter from 9.9%

4 National Market Vacancy rose to Oklahoma City Quick Hits 10% in 2nd Quarter from 9.9% Thredup, a second-hand e-commerce site is opening its first store

The National Retail Federation projects retail sales growth for 2017 of 3.7% - 4.2%

The Energy sector accounts for roughly 3% of OKC’s employment and 10% of earnings

Walmart.com sales increased 63%in the 1st Quarter

Expected Sales Growth by Segment Online 12.6% Department Stores <7.6%> Health/Personal Care 6.7%

5 2017 Mid-Year Oklahoma City Retail Market Summary NORTH SUBMARKET

The North Oklahoma City submarket leads the market both in the total retail square footage and in retail demand. Out of the 6.9 million square feet of space in the submarket, nearly half is along the Memorial Road corridor. Vacancy declined to 6.2 percent at mid-year from 8.9 percent at year-end. Much of this improvement was the sale of the vacant Quail Springs Macy’s to Lifetime Fitness who plans to tear it down and build a stand-alone facility. Chisholm Creek will open a new stand-alone Starbucks and small strip center along Pennsylvania this year and has broken ground on The Pointe which will be 5 restaurants and more retail around a small lake. Shoppes at Quail Springs is now 82 percent leased. And, as is prevalent across the metro, several smaller centers have been opened in the submarket. The Chickasaw Nation has announced that they plan to build a Warren Theater at the southeast corner of Eastern and the Kilpatrick Turnpike that will have additional land for development. OKC Talk reported Costco is finalizing plans to buy a parcel of land just south of Memorial on Western.

The area around Penn Square Mall, Oklahoma’s leading mall, is probably even more highly desired among retailers, but there is limited availability of land for development. Simon is building a 23,000 square foot Container Store on their north parking lot. It is expected that the lawsuit that held up Washington Prime’s proposed mixed-use development at 63rd and Grand Avenue will be resolved soon; its uncertain if/when the development will be started. In the meantime, Classen Curve has added some name national boutique tenants, including Athleta & Cos Bar, to a new building under construction. Whole Foods bears watching now that it is owned by Amazon; the OKC location has done exceedingly well by all accounts. The former Salvation Army building on the southwest corner of Northwest Expressway and Pennsylvania has been demolished in preparation for a potentially larger mixed-use development in this prime location. Overall interest in both the Memorial Corridor and the Penn Square Mall area remains strong.

NORTH

NORTH OKC SUBMARKET ABSORPTION 400 350 300 250 200 150 100 50

(thousands of square feet) (thousands of square 0 -50 -100 2013 2014 2015 2016 2017

NORTH OKC SUBMARKET VACANCY 10%

0% 2013 2014 2015 2016 2017

6 2017 Mid-Year Oklahoma City Retail Market Summary NORTH SUBMARKET

Total Available North Built/Updated Leasing Agent Space Space Vacant Rate 1 Rate 2 Anchor Tenants 50 Penn Place 1973/1985/2000 Price Edwards & Company 86,802 35,682 41.11% $15.00 $15.00 Full Circle Books NW 50th St & N Pennsylvania Ave Karleen Krywucki/George Williams Belle Isle Brewery 6900 Place 1981/1991/1992 CBRE/OKLA 49,502 8,491 17.15% $10.00 $12.00 Ted's Cafe Escondito 6900 N May Ave Ryan Storer/Stuart Graham Four Star Fitness Belle Isle Station 2000 CBRE/OKLA 433,333 4,853 1.12% $20.00 $28.00 WalMart SuperCenter NW Expressway & N Classen Blvd Mark Inman/Stuart Graham Old Navy, Nordstrom Rack Britton Plaza Shopping Center 1975 Gerald Gamble Co. 27,340 2,550 9.33% $10.00 $10.00 Johnny's, A to Z Outlet 2648 W Britton Rd Gerald Gamble Britton Square 1983 Box Real Estate 27,326 0 0% $9.50 $0.00 Kim Wah Restaurant N May Ave & NW Britton Rd Tommy Garrison Gourmet Yarn Company Camelot Square 1984 Blanton Properties 107,799 0 0% $14.00 $0.00 Cox Communications NW 122nd St & N Pennsylvania Ave Jeff Bolding Casa Perico's Casady Square 1953/1983/1995 Price Edwards & Company 158,764 24,073 15.16% $12.00 $16.00 CVS Pharmacy, Walgreens W Britton Rd & N Pennsylvania Ave Susan Brinkley/Ev Ernst/George Williams Wal Mart Neighborhood Market Centennial Plaza 1993 CBRE/OKLA 233,794 50,000 21.39% $12.00 $16.00 Best Buy 5801 N May Ave Mark Inman Home Depot Charter At May 1963/1988/1996 The Boettcher Companies 99,757 9,275 9.30% $12.50 $20.00 Luby's Cafeteria Bank of America, Tuesday 9494 N May Ave Fred Boettcher Morning Chisholm Creek 2016 Medallion Group 196,600 10,396 5.29% $39.00 $35.00 Top Golf Memorial & Pawnee Drive Whitney Rainbolt Cabela's Classen Curve 2008 Blanton Properties 93,970 3,032 3.23% $0.00 $0.00 Balliet's, Republic 5820 NW Grand Blvd Tom Blanton/Laci Jackson Ravina Red Coyote, lululemon Collonade Shopping Center 1984 Brady Properties 59,000 2,768 4.69% $10.00 $14.00 The Runner 9600 N May Ave Ali Ghaniabadi Cafe Pranzo Colonial Plaza 2003 Eric Roberts 141,456 0 0% $8.00 $0.00 Homeland 9225 N May Ave Eric Roberts Cato Country Club Corner 1959/1996 JAH Realty, LP 53,477 0 0% $16.00 $25.00 Sprouts 6410 N May Ave Jeff Norman/Ethan Slavin Half Price Books Country Club Village 1970/1992/2003 CBRE/OKLA 30,846 14,776 47.90% $21.00 $14.00 Fitness Together 2800 W Country Club Dr Susan Davis Jordan/Kelsey Gilbert Edward Jones, Beau's Wine Bin Cross Rock Shops 2001 Medallion Management 24,578 2,750 11.19% $19.00 $20.00 ME/CU Credit Union 3521-3561 W Memoral Rd Whitney Rainbolt McAlister's Deli Fenwick Plaza 2009/2015 Westbrook Properties 41,804 3,691 8.83% $13.08 $20.64 Allstate 16524 N Pennsylvania Ave Gretchen Bybee Fenwick Liquor French Market Mall 1985 CBRE/OKLA 244,724 3,750 1.53% $8.00 $25.00 Bed Bath & Beyond 2836 NW 63rd St Mark Inman Staples, Petco Gold's Gym Center 1982/2008 Hawkins Companies 66,662 0 0% $12.00 $18.00 ATT Flagship Store 2301 W. Memorial Ryan Manteuffel Gold's Gym Golden Court 2010 CBRE/OKLA 26,000 2,750 10.58% $12.00 $16.00 T-Mobile 1121 NW 23rd St Ryan Storer Rent-A-Center Highland Park Retail Center 2009 CBRE/OKLA 42,428 11,025 25.99% $19.00 $19.00 Louie's, Upper Crust Pizza W 178th St & N Western Ave Stuart Graham The Sushi Bar Lakehurst Plaza 1978/1990 Graystone Properties 32,637 0 0% $11.00 $12.00 Gulfport Fish Market 8025 N May Ave David Rush Movement Innovations Dance Lakeside Shops Shopping Center 1964/2013 Pippin Properties 68,179 3,799 5.57% $14.00 $14.00 Firestone/Bridgestone NORTH 7500 N May Ave Linette Roberts Freddy's Frozen Custard Lakewood Shopping Center 1980/2015 Oxford Group 64,937 0 0% $10.00 $12.00 Natural Grocers 6901 N May Ave Gabby Villareal Stork Land & Kids Too Mathis Brothers Village 2016 owner managed 80,000 0 0% $0.00 $0.00 Mathis Brothers Sleep Center 3400 W Memorial Rd Ashley Furniture Mayfair Place 1978 Price Edwards & Company 95,000 7,091 7.46% $12.00 $15.00 Akin's Health Foods 2900 NW 63rd St Karleen Krywucki PetsMart, Big Lots Memorial Square 2006 CBRE/OKLA 225,000 23,247 10.33% $23.00 $26.50 Super Target, Marshalls 13730 N Pennsylvania Mark Inman/Stuart Graham DSW, Golf Galaxy Midland Center 1961 Price Edwards & Company 54,272 3,503 6.45% $0.00 $0.00 Conn's NW Expressway & Independence Susan Brinkley/Ev Ernst/George Williams Panera Bread Nichols Hills Plaza 1963 Blanton Properties 125,712 12,466 9.92% $0.00 $0.00 CK & Company, Trader Joes 6501 Avondale Dr Tom Blanton/Laci Jackson Ravina Starbucks, Provision Kitchen North Penn Plaza 1970/71 Steve Hetherington 32,000 0 0% $0.00 $0.00 Koslow's Furs 5601 N Pennsylvania Ave Steve Hetherington Bank of The West Northpark Mall 1971/1981 Morris Enterprises 202,106 42,178 20.87% $12.00 $18.00 B.C. Clark 12100 N May Ave Kevyn Colburn Norwalk Furniture Penn Square Mall 1960/1988 Simon Property Group 1,057,000 0 0% $0.00 $0.00 Apple, Dillards 1901 NW Expressway Macy's Penn-Hefner Plaza 1973/1977 Haydel Associates 69,392 42,000 60.53% $14.00 $14.00 Beauty World 2121 W Hefner Rd Aimee Parrish Beauty World Quail Plaza 1965/1989/1991 Morris Enterprises 141,421 29,494 20.86% $12.00 $17.00 Old School Bagel 10950 N May Ave Kevyn Colburn Goodyear Tire Quail Springs Mall 1980/1999 General Growth Mgmt.,Inc. 1,150,627 30,700 2.67% $0.00 $0.00 Dillard's, LIfetime Fitness W Memorial Rd & N Pennsylvania Ave Kelly Waswo Von Maur Quail Springs MarketPlace 1998 Bayer Properties 410,613 5,288 1.29% $15.00 $30.00 Old Navy, Michaels W Memorial Rd & N Pennsylvania Ave Mary Beyer Lell Office Depot, Ulta Quail Springs Village 1983 JAH Realty, L.P. 26,350 0 0% $30.00 $20.00 Pier 1 Imports 13801 N Pennsylvania Ave Ethan Slavin Quail Village 2007 Newmark Grubb Levy, Beffort 49,845 6,322 12.68% $20.00 $20.00 Cafe 7, Lush, Cool Greens 14101 N May Ave John Cohlmia/Louis Almaraz/Michael Almaraz Shoppes at Quail Springs 2016 Price Edwards & Company 73,000 13,000 17.81% $28.00 $25.00 Salons By JC 13601 N May Avenue George Williams Salata Salad Shoppes at the Veranda 2006 Irish Realty 29,712 4,300 14.47% $0.00 $0.00 Perfect Tan 150th St & N Western Ave Shannon Foreman All Fur Paws Spring Creek North 1981 JAH Realty, L.P. 89,006 2,490 2.80% $14.00 $12.00 Chase Bank 12200 N May Ave Ethan Slavin Salon Service Group The Plaza at Quail Springs 2005 JAH Realty, L.P. 105,299 0 0% $14.00 $0.00 Hobby Lobby 2221 NW 138th St Ethan Slavin Dollar Tree The Rise 1920/2014 Land Run Commercial 37,186 3,603 9.69% $22.00 $18.00 Anytime Fitness 511 NW 23rd St Troy Humphrey Cox Cable, Interior Gilt The Shoppes at North Pointe 2002 Price Edwards & Company 37,684 895 2.38% $15.00 $15.00 Chase Bank W Memorial Rd & N May Ave George Williams/Phillip Mazaheri Jimmy's Egg The Shops @ Quail Springs 2012 Blanton Properties 90,856 0 0% $0.00 $0.00 Dick's Sporting Goods NW 146th & Pennsylvania Tom Blanton/Laci Jackson Ravina Petco The Triangle @ Classen Curve 2009 Blanton Properties 66,862 0 0% $0.00 $0.00 Whole Foods, West Elm 6001 N Western Tom Blanton/Laci Jackson Ravina Anthropologie Town & Country Village Shopping Center 1982/1992 CBRE/OKLA 43,491 1,750 4.02% $10.00 $12.00 Backwoods 12325 N May Ave Mark Inman/Ryan Store/Stuart Graham Subway, At the Beach Village at Quail Springs 2004 Lincoln Property Company 100,404 0 0% $0.00 $0.00 Best Buy 2201 W Memorial Rd Village Park South 1972/2016 NAI Sullivan 42,573 3,250 7.63% $10.00 $10.00 Relax the Back 10405 N May Ave David Hartnack/SamSwanson/Nathan Wilson Fedex Village Plaza 1964/1973/1989 NAI Sullivan Group 47,580 2,600 5.46% $8.00 $10.00 Westlake Ace Hardware 1501 - 1529 W Britton Rd David Hartnack / Sam Swanson Dollar General Wilshire Village 1986 Scott Samara,M.D. 27,000 0 0% $11.00 $12.00 Sherwin Williams W Wilshire Blvd & N Western Ave Dana Makeup Bar North Totals 6,921,706 427,838 6.18%

7 2017 Mid-Year Oklahoma City Retail Market Summary NORTHWEST SUBMARKET

Total Available Northwest Built/Updated Leasing Agent Space Space Vacant Rate 1 Rate 2 Anchor Tenants The overall Northwest submarket has seen limited activity when compared to the Memorial Road corridor 2016 NW 39th St 1973 Newmark Grubb Knight Frank 33,408 9,920 29.69% $8.00 $8.00 Goodwill to the north and the Interstate 40 corridor to the south; it is one of the more mature areas in the city. For 2016 NW 39th St Michael Rapella/Jay Cohlmia/Danny Ojeda many retailers, this market is their second or third choice. This is reflective of the area demographics and the Brixton Square 1985 GBR Properties 122,042 14,689 12.04% $8.50 $12.00 Panera Bread 7101 NW Expressway Randy Vaillancourt Party Galaxy distressed condition of some of these properties: the northwest submarket is characterized by established Cornerstone Plaza 1958/1978/2007 Price Edwards & Company 65,285 14,250 21.83% $8.00 $10.00 Family Dollar, City Bites neighborhoods with limited population growth and relatively unchanged demographics. Having said that, NW 39th St & N MacAr- thur Blvd George Williams/Phillip Mazaheri Ocean Dental occupancy has held relatively firm albeit at a lower level. Occupancy at mid-year was 83.3 percent. Zerby Council Crossing 1986/1992/2003 JAH Realty, L.P. 141,112 80,553 57.08% $12.50 $3.75 Goodwill Interests’ Oak Grove project was the first quality development in the area for some time and continues its 8101 NW Expressway Ethan Slavin CrossFit lease up, anchored by Sprouts. Winco will build one of its stores at 39th & Portland, although it will probably Jersey Mike,s, Billy Sims Courtyard Plaza 1984 CBRE/OKLA 38,998 5,759 14.77% $14.00 $16.00 BBQ be the last of the four completed. Like much of the retail product in Oklahoma City, a significant amount of 6401 NW Expressway Ryan Storer/Stuart Graham/Mark Inman Gentle Dental the submarket vacancy is in older centers. Lakeshore Shopping Center 2002 Oxford Group 139,447 22,383 16.05% $0.00 $0.00 Academy Sporting Goods 4200 NW Expressway Gaby Villarreal Planet Fitness Lakeshore Shops 1998 Charles Shadid 33,140 1,300 3.92% $5.00 $8.00 Freedom Pawn 7930 N MacArthur Blvd Charles Shadid Al's Bicycles MacArthur Shops 1983 Price Edwards & Company 23,645 5,050 21.36% $9.00 $0.00 State Farm W Britton Rd & N MacArthur Blvd Rosha Wood Spotted Zebra Vatterott College, Hideaway Market Place OKC 1985 Newmark Grubb Levy, Beffort 178,854 29,617 16.56% $12.00 $13.00 Pizza 5501 NW Expressway Louis Almaraz/Michael Almaraz Donna's Hallmark Market Plaza 1981/1982 CBRE/OKLA 152,726 55,625 36.42% $6.00 $35.00 ALDI, PetCo 7001 NW Expressway Ryan Storer/Stuart Graham/Mark Inman Westlake Hardware Mayfair Village 1948/1990 Price Edwards & Company 174,911 34,272 19.59% $12.00 $10.00 Michael's, ALDI NW 50th St & N May Ave Susan Brinkley/Ev Ernst/George Williams Steinmart Newport 1972 Charles Shadid 25,740 0 0% $5.00 $7.00 7-Eleven 9120 N MacArthur Blvd Charles Shadid Sunshine Laundry Oak Grove Plaza 2015 Zerby Interests 70,249 26,211 37.31% $25.00 $20.00 Sprouts NW 122nd & MacArthur Caleb Hill OKC Market Square 1983/2000 Marquett Realty Investments 143,579 14,213 9.90% $10.00 $12.00 Family Leisure, TJ Maxx 8400 NW Expressway John D Thomas Central State Beauty Olympia Plaza 1990/98 Core Real Estate 34,640 0 0% $10.00 $12.00 Dynamo Gymnastics 7202 W Hefner Rd Jim Sanders Let's Do Greek Restaurant Peppertree Square 1984 Newmark Grubb Levy, Beffort 77,938 24,419 31.33% $5.00 $9.00 Allstate, My Dentist

NORTHWEST 6444 NW Expressway Jim Rose Portland Plaza 1966 JAH Realty, L.P. 103,312 13,715 13.28% $0.00 $0.00 Locke Supply NW 39th St & N Port- land Ave Ethan Slavin Dollar General Quailbrook Plaza 1987 Price Edwards & Company 90,389 2,300 2.54% $15.00 $12.00 Phycon, Key's Financial 4401 W Memorial Rd George Williams/Phillip Mazaheri Mercy Health System Rock Center 1982 Newmark Grubb Levy, Beffort 29,000 1,750 6.03% $14.00 $14.00 H&R Block 6714 NW Expressway John Cohlmia Rockwell Crossing 1986 NAI Sullivan Group 30,200 7,700 25.50% $12.00 $8.00 YMCA 12100 N Rockwell Ave David Hartnack/Sam Swanson Pizza Hut Rockwell Northwest 1985/1999 JAH Realty, L.P. 154,944 8,596 5.55% $24.00 $15.00 Hobby Lobby 7000 NW Expressway Ethan Slavin Fedex, Chick fil A Rockwell Plaza 1981/2000 CBRE/OKLA 414,507 19,291 4.65% $0.00 $0.00 Target Ross Dress for Less, 7104 NW Expressway Mark Inman PetSmart Silver Springs Pointe 2000 CBRE/OKLA 700,000 13,114 1.87% $15.00 $20.00 Wal-Mart , Mattress Firm 7640 NW Expressway Stuart Graham/Ryan Storer Home Depot Springbrook Shopping Center 1968 Newmark Grubb Levy, Beffort 50,000 10,000 20% $10.00 $12.00 10 Gym Fitness 6207 NW Expressway Louis Almaraz/Michael Almaraz NORTHWEST OKC SUBMARKET NORTHWEST OKC SUBMARKET Springdale Shops 1962/2014 Price Edwards & Company 126,000 24,479 19.43% $10.00 $10.00 Dollar General ABSORPTION VACANCY NW 50th St & N Merid- George Williams/Phillip Mazaheri Super Mercado 100 20% ian Ave Walnut Village 1986/2000 Newmark Grubb Levy, Beffort 53,088 7,821 14.73% $15.00 $0.00 Nhinja Sushi 80 12301 N Rockwell Ave Michael Almaraz Leslie's Pool Supplies 15% Warr Acres Shops 1960/1994 Core Real Estate 34,400 17,400 50.58% $6.00 $10.00 Goodwill 60 NW 50th St & N MacArthur Jim Sanders Big Red Shop 40 Warwick Crossing 1995 Interwest Realty 31,804 9,881 31.07% $11.00 $11.01 Flexible Fitness 10% 6909 W Hefner Rd George Huffman/Brad Hoffman Watch Me Grow Childcare 20 Warwick Plaza 1985 Newmark Grubb Levy Strange Beffort 60,433 1,500 2.48% $4.00 $11.00 Dollar General NW 122nd St & N Jim Rose Subway, Eden Salon 0 MacArthur Blvd 5% (thousands of square feet) (thousands of square Northwest Totals 3,333,791 475,808 14.27% -20

-40 0% 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

8 NORTHWEST 9 Central State Beauty State Central Let's Do Greek Restaurant Greek Do Let's Dentist My Allstate, Locke Supply Ross Dress for Less, for Dress Ross PetSmart Home Depot Fitness Gym 10 Sunshine Laundry Sprouts Maxx TJ Leisure, Family Dynamo Gymnastics Dynamo Watch Me Grow Childcare Gentle Dental Gentle Fedex, Chick fil A Target Subway, Eden Salon Planet Fitness Planet Wal-Mart Mattress Firm , Al's Bicycles General Dollar Spotted Zebra Spotted Donna's Hallmark Donna's Westlake Hardware Westlake Steinmart 7-Eleven Mercy Health System Health Mercy Block H&R Big Red Shop Fitness Flexible CrossFit Jersey Mike,s, Billy Sims BBQ Pizza Hut Lobby Hobby General Dollar Academy SportingAcademy Goods Freedom Pawn Freedom State Farm Vatterott College, Hideaway Hideaway College, Vatterott Pizza ALDI, PetCo Michael's, ALDI Anchor Tenants Anchor Super MercadoSuper Dollar General Dollar Phycon, Key's Financial Supplies Pool Leslie's Goodwill Ocean Dental Goodwill YMCA Nhinja Sushi Nhinja Goodwill Party Galaxy Party City Bites Dollar, Family Panera Bread Panera $9.00 $0.00 $12.00 $20.00 $12.00 $12.00 $0.00 $20.00 $10.00 $7.00 $14.00 $11.01 $16.00 $15.00 $11.00 $0.00 $8.00 $0.00 $13.00 $35.00 $10.00 Rate 2 Rate $12.00 $10.00 $3.75 $8.00 $0.00 $8.00 $10.00 $12.00 $5.00 $0.00 $10.00 $25.00 $10.00 $10.00 $0.00 $15.00 $10.00 $5.00 $14.00 $11.00 $14.00 $24.00 $4.00 $0.00 $5.00 $9.00 $12.00 $6.00 $12.00 Rate 1 Rate $15.00 $6.00 $12.50 $12.00 $15.00 $8.00 $8.00 $8.50 NORTHWEST SUBMARKET NORTHWEST 31.33% 13.28% 20% 37.31% 9.90% 0% 4.65% 1.87% 19.43% 0% 6.03% 31.07% 14.77% 5.55% 2.48% 16.05% 3.92% 21.36% 16.56% 36.42% 19.59% 14.27% Vacant 2.54% 50.58% 57.08% 25.50% 14.73% 29.69% 21.83% 12.04% 24,419 13,715 10,000 26,211 14,213 0 19,291 13,114 24,479 0 1,750 9,881 5,759 8,596 1,500 22,383 1,300 5,050 29,617 55,625 34,272 2,300 17,400 80,553 7,700 475,808 Available Available Space 7,821 9,920 14,250 14,689 77,938 103,312 50,000 70,249 143,579 34,640 414,507 700,000 126,000 25,740 29,000 31,804 38,998 154,944 60,433 139,447 33,140 23,645 178,854 152,726 174,911 90,389 34,400 141,112 30,200 3,333,791 Total Space 53,088 33,408 65,285 122,042 2017 Mid-Year Oklahoma City Retail Market Summary Market City Retail Oklahoma Mid-Year 2017 Newmark Grubb Levy, Beffort Rose Jim JAH Realty, L.P. Newmark Grubb Levy, Beffort Almaraz/MichaelLouis Almaraz Zerby Interests Zerby Hill Caleb Investments Realty Marquett Thomas D John Core Real Estate Jim Sanders CBRE/OKLA Inman Mark CBRE/OKLA Stuart Graham/Ryan Storer Price Edwards & Company Charles ShadidCharles Charles ShadidCharles Newmark Grubb Levy, Beffort Cohlmia John Interwest Realty Huffman/Brad HoffmanGeorge CBRE/OKLA Graham/Mark Inman Storer/Stuart Ryan JAH Realty, L.P. Ethan Slavin Newmark Grubb Levy Strange Beffort Rose Jim Oxford Group Oxford Villarreal Gaby Charles ShadidCharles ShadidCharles Price Edwards & Company Wood Rosha Newmark Grubb Levy, Beffort Almaraz/MichaelLouis Almaraz CBRE/OKLA Graham/Mark Inman Storer/Stuart Ryan PriceEdwards & Company Susan Brinkley/Ev Ernst/George Williams PriceEdwards & Company Williams/PhillipGeorge Mazaheri Core Real Estate Jim Sanders JAH Realty, L.P. Ethan Slavin Group Sullivan NAI Hartnack/SamDavid Swanson George Williams/PhillipGeorge Mazaheri Ethan Slavin Newmark Grubb Levy, Beffort Michael Almaraz George Williams/PhillipGeorge Mazaheri Leasing Agent Michael Rapella/Jay Cohlmia/DannyMichael Rapella/Jay Ojeda Newmark Grubb Knight Frank Price Edwards & Company GBR PropertiesGBR Vaillancourt Randy 2015 1972 1973 1987 1982 1984 1995 1985 1985 1986 1998 1966 1984 1983 1968 1985 2002 2000 1990/98 1981/1982 1962/2014 1981/2000 1985/1999 1960/1994 1948/1990 1983/2000 1986/2000 1958/1978/2007 1986/1992/2003 Built/Updated - - - Olympia Plaza Peppertree Square 6444 Expressway NW Portland Plaza NW 39th St & N Port Silver Springs Pointe Springbrook Shopping Shopping Springbrook Center Expressway NW 6207 Shops Springdale OakGrove Plaza NW 122nd & MacArthur Square Market OKC 8400 Expressway NW 7202 W Hefner Rd Warwick Plaza Warwick Lakeshore Shopping Shopping Lakeshore Center Rockwell Plaza Expressway NW 7104 Lakeshore ShopsLakeshore Expressway NW 7640 MacArthur Shops NW 50th St & N Merid Market Place OKC Market Plaza Mayfair VillageMayfair Newport N MacArthur9120 Blvd Rock Center Rock Expressway NW 6714 Rockwell Crossing CrossingWarwick 6909 W Hefner Rd Courtyard Plaza Expressway NW 6401 Rockwell Northwest Expressway 7000 NW NW 122nd St & N MacArthur Blvd 4200 NW Expressway 4200 NW 7930 N MacArthur Blvd W Britton Rd & N MacArthur Blvd 5501 NW Expressway NW 5501 7001 NW Expressway NW 7001 NW 50th St & N May Ave Walnut Village Walnut Quailbrook Plaza Quailbrook 4401 W Memorial Rd Warr Acres Shops NW 50th St & N MacArthur Council Crossing Council Expressway NW 8101 N Rockwell12100 Ave Northwest Totals Northwest ian Ave 12301 N Rockwell Ave land Ave thur Blvd Northwest NW2016 39th St 2016 NW2016 39th St Brixton Square Cornerstone Plaza NW 39th St & N MacAr 7101 NW Expressway NW 7101 2017 Mid-Year Oklahoma City Retail Market Summary SOUTH SUBMARKET

The South Oklahoma City occupancy improved modestly, ending the first half of the year at 85.6, compared to 85 percent at year-end. As noted in our last report, the closure of two large trade schools, Wrights and Heritage College, created significant vacancy as did the Hancock Fabric closure. Emerson South has leased most of the Wrights vacancy and the Heritage College building is expected to be sold and occupied soon. These gains have been offset by miscellaneous vacancy at some of the submarket’s larger centers, Southern Hills, Walnut Square, Shields Plaza and some older product such as Almonte Square. The planned re-positioning and expansion of Shields Plaza is not on the immediate horizon. Access at the east end of Interstate 240 is an issue with the ongoing multi-year remodel of the Interstate 35, Interstate 240 interchange. The northern half of this submarket is heavily reliant on the Hispanic shopper and is largely characterized by smaller centers.

SOUTH OKC SUBMARKET VACANCY 20%

15%

10%

0% 2013 2014 2015 2016 2017

SOUTH OKC SUBMARKET SOUTH ABSORPTION 100

-20 (thousands of square feet) (thousands of square -40

-60 2013 2014 2015 2016 2017

10 2017 Mid-Year Oklahoma City Retail Market Summary SOUTH SUBMARKET

Available South Built/Updated Leasing Agent Total Space Space Vacant Rate 1 Rate 2 Anchor Tenants 240 Penn Park 2005 CBRE/OKLA 317,023 30,300 9.56% $12.00 $12.00 Ross, Michaels 1409 W I-240 Mark Inman/Stuart Graham PetSmart 74 South Centre 1973/2006 Paul B. Odom Construction 50,000 2,230 4.46% $14.00 $16.00 At the Beach SW 74th St & S Pennsylva- nia Ave Paul Odom 89'er Plaza 1984 Lauren Weyhe 30,000 0 0% $6.00 $7.00 Plane Eagle Coin SW 89th St & S Walker Ave Lauren Weyhe Sharp's Cleaners Airline 1999 Charles Shadid 121,368 6,250 5.15% $3.00 $4.00 Tom's Tires 3400 SW 29th St Charles Shadid El Rodeo Carnecaria Oklahoma Metropolitan Almonte Square 1963/2014 Price Edwards & Company 107,676 55,928 51.94% $0.00 $0.00 Library Family Dollar, Planet 6100 S May Ave Everest Ernst Fitness Brookwood North I & II 1998 Charles Shadid 58,249 0 0% $5.00 $8.00 China Wok Restaurant SW 89th St & S Western Ave Charles Shadid Chelino's Restaurant Brookwood Shopping Center 1984/2012 Precor Ruffin 80,615 8,026 9.96% $12.00 $22.00 Planet Fitness SW 89th St & S Western Ave Rick Pritchett Goodwill Centre 8400 1984 Precor Ruffin, LLC 29,355 7,995 27.24% $10.00 $10.00 H&R Block 8400 S Western Ave Rick Pritchett Subway Chatenay Square 2000 PB Odom, III 114,115 3,300 2.89% $17.50 $0.00 Homeland SW 104th St & Pennsylvania Ave PB Odom, III Panera Bread County Park Shopping Center 1978 Land Run Commercial 24,360 8,000 32.84% $5.45 $7.71 Value Thrift 5906 S Agnew Ave Andrew Hwang Crest Center 2012 Newmark Grubb Levy, Beffort 96,000 8,877 9.25% $17.50 $20.00 Crest Foods 3000 SW 104th John Cohlmia Cox Cable Crossroads Shopping Center 1987 Precor Ruffin 31,282 10,000 31.97% $10.00 $0.00 Concentra Medical Ctr 7100 S. I-35 Service Rd. Rick Pritchett Economy Square 1963/98 Newmark Grubb Levy, Beffort 203,451 19,800 9.73% $9.00 $18.00 Best Buy Grocery SW 29th St & S May Ave Michael Almaraz/Louis Almaraz Walgreens Grant Square 1958/1992 By Owner 103,810 9,620 9.27% $8.00 $5.00 Aaron Rents SW 44th St & S Pennsylva- nia Ave Subway Greenway Plaza 1985 Newmark Grubb Levy, Beffort 117,251 5,200 4.43% $11.00 $11.00 Westlake Hardware SW 119th St & S Western Ave Jim Rose Tuesday Morning Hillcrest Shopping Center 1971 Blanton Properties 50,000 35,000 70% $8.00 $8.00 Athena Greek 2100 SW 59th St Jeff Bolding I-240 Plaza 1988 Brady Properties 27,120 0 0% $10.00 $10.00 Pro Nails 7800 S Western Ali Ghaniabadi Jackson Hewitt Kentucky Shops 1970 L & S Real Estate 32,500 0 0% $4.00 $0.00 Family Dollar SW 29th St & S Kentucky Ave Young Shin SOUTH Lightning Creek 1985 Lightning Creek Complex 48,005 800 1.67% $8.00 $0.00 Costume Shop, Allstate 8100 S Western Ave Debra Gutierrez State Farm, Jewel Box Mayridge Shopping Center 1956 38,000 0 0% $5.00 $5.00 Dollar General SW 44th St & May Ave Buddy Shadid Palagio Shops 2005 Newmark Grubb Knight Frank 47,547 5,875 12.36% $17.50 $0.00 Pizza Hut, Jump Zone McAlisters Deli, Sports SW 104th St & S Western Ave Danny Ojeda/John Cohlmia/Jay Cohlmia Clips Buy For Less, Super Reding Shopping Center 1972 JAH Realty, L.P. 77,488 5,355 6.91% $12.00 $7.00 Mercardo Grand Blvd & S Western Ave Ethan Slavin El Chico Langston's Western Shields Plaza 1972/2011 Zerby Interests 170,000 15,585 9.17% $10.00 $17.00 Wear SW 74th & S Shields Blvd Michael Rapella Burlington, Fallas South Meridian Plaza 1983 Price Edwards & Company 36,100 6,000 16.62% $12.00 $17.00 Billy Sims BBQ 1025 S Meridian Ave George Williams Cowboy Cleaners Ziggy, Turimex Bus South Park 1975 South Park 86,848 14,395 16.57% $10.00 $0.00 Service 4500 S May Ave Henry South Penn Plaza 1984 Emersons Commercial Real Estate 90,000 16,525 18.36% $7.00 $12.00 Saigon Taipei Market 1620 SW 89th St Terry Watson Smart Saver, Plaza Southeast Plaza 1964 By Owner 195,266 9,500 4.87% $4.50 $6.00 Latina SE 44th St & S High Ave Amilcar De Leon - Star One, LLC Family Dollar Southern Hills 1964/1990 CBRE/OKLA 202,247 76,605 37.88% $8.00 $18.00 Northern Tool, Dollar Tree SW 74th St & S Pennsylva- nia Ave Ryan Storer/Stuart Graham Joe's Crab Shack Southwestern Plaza 1962/1987 Coldwell Banker Commercial 122,527 17,600 14.36% $7.00 $7.20 SW 59th St & S Western Ave Jerry Hocker/Jack James Stonebriar Shopping Center 2005 Brady Properties 30,000 0 0% $10.00 $12.00 Studio Art Photography Allied Medical, Adams 13316 S Western Ave Ali Ghaniabadi Chiropractic Summit Pointe Plaza 2008 Price Edwards & Company 30,414 3,600 11.84% $16.00 $16.00 Louie's SW 89th St & S Western Ave George Williams Slim Chickens SW 119th Street Marketplace 2009 Price Edwards & Company 28,676 12,870 44.88% $14.00 $16.00 Lemon Grass 801 SW 119th St Susan Brinklety Papa Murphys Towne South Center 2004/2005/2010 Price Edwards & Company 130,000 2,582 1.99% $20.00 $15.00 Heartland Dental SW 74th St & S Walker Ave George Williams/Phillip Mazaheri Chuck E Cheese Buy For Less Supermer- Walker Square 1983 Precor Ruffin 100,430 27,793 27.67% $9.00 $14.00 cado SW 59th St & S Walker Ave Rick Pritchett Walnut Square 1985 Price Edwards & Company 314,299 53,013 16.87% $12.00 $18.00 Big Lots, Hobby Lobby Susan Brinkley/Ev Ernst/George Wil- 2209 SW 74th St liams Green Acres Market Westernview Center 1958/78 CBRE/OKLA 104,000 14,563 14% $6.00 $17.00 Taste of China 7107 S Western Ave Ryan Storer Dollar General Westminster Executive Westminster Village 1986 Brady's Properties 79,500 15,026 18.90% $7.00 $10.00 Suite 10601 S Western Ave Ali Ghaniabadi South Totals 3,525,522 508,213 14.42%

11 2017 Mid-Year Oklahoma City Retail Market Summary EDMOND SUBMARKET

Edmond saw continued improvement in occupancy, ending June at 90.5 percent, up from 89.2 percent at year-end and 88.8 a year ago. Bryant Square continues its re-positioning and has added Zoe’s, Ulta, and 5 Below among other tenants. Crest formally announced plans to open a store at Sooner & Covell. There have also been a number of smaller strip centers built in the market. The fallout from store closures has, to date, had limited effect on the Edmond market in general but has negatively impacted a few centers. The one major casualty of the market and Edmond politics appears to be Poag Shopping Center’s lifestyle center on the Bridges at Springcreek site. This would have been a first to Oklahoma City type of project but market conditions and a city-wide vote to not allow the multi-family component has stalled and perhaps killed the project. Virtually all multi-store retailers want to be in the market given Edmond’s demographics, particularly incomes and disposable spending. Incremental development should continue and demand should be sufficient to backfill most larger vacancies from national tenant closures.

EDMOND SUBMARKET VACANCY 12%

10%

0% 2013 2014 2015 2016 2017 EDMOND EDMOND SUBMARKET ABSORPTION 120

100

20 (thousands of square feet) (thousands of square 0

-20 2013 2014 2015 2016 2017

12 2017 Mid-Year Oklahoma City Retail Market Summary EDMOND SUBMARKET

Available Edmond Built/Updated Leasing Agent Total Space Space Vacant Rate 1 Rate 2 Anchor Tenants 33rd & Boulevard 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 2008 JAH Realty, L.P. 30,858 1,490 4.83% $26.00 $0.00 Qdoba, Edward Jones 301 S Bryant Ave Ethan Slavin Panda Express Berkshire Plaza 2002 Foraker Co 35,612 1,600 4.49% $14.00 $0.00 Office Depot W 15th St & S Broadway Jeremy Foraker Nhinja Sushi & Wok Boulevard Village 1985 Price Edwards & Company 36,173 7,915 21.88% $10.00 $12.00 Pizza Hut 3404-3456 S Boulevard St George Williams McBride Clinic Broadway South 1977 NaifCo Realty Co 61,524 7,500 12.19% $15.00 $0.00 Edmond Music 3320 S Broadway Blair Naifeh Courtyard Antiques Broadway Square 1968/1994 Land Run Commercial 93,488 4,001 4.28% $8.00 $14.50 City Bites 3601 S Broadway Anna Fresonke/Ian Duty Duncan Bros Salon Bryant Square 1973/1992 CBRE/OKLA 310,000 36,705 11.84% $0.00 $0.00 Bed Bath & Beyond Mark Inman/Stuart Graham/ E 2nd St& N Bryant Ave Ryan Storer Old Navy, Petco Danforth Plaza 2003 Price Edwards & Company 30,282 4,050 13.37% $10.00 $14.00 Papa Murphy’s 2000 W Danforth Rd George Williams State Farm Herndon & Kelly Commercial Danforth Square 1999 Real Estate 108,000 0 0% $14.00 $12.00 Hobby Lobby W Danforth Rd & S Kelly Ave Todd Herndon Athletic Village Edmond Crossing 1995 Price Edwards & Company 151,664 4,000 2.64% $12.00 $16.00 Tuesday Morning 24 E 33rd St Ev Ernst/George Williams TJ Maxx Edmond Exchange 2003 JAH Realty, L.P. 71,218 12,030 16.89% $0.00 $0.00 On the Border 3233 S Broadway Ethan Slavin Edmond Market Place 1980/2014 CBRE/OKLA 99,148 51,231 51.67% $11.00 $21.00 Natural Grocers Mark Inman/Stuart Graham/ 3301 S Boulevard Ryan Storer Traditions Edmond Plaza 1964/2005 Price Edwards & Company 158,373 5,785 3.65% $9.00 $14.00 Westlake Hardware Susan Brinkley/Ev Ernst/ E 15th St & Broadway Ext. George Williams Big Lots Edmond Trails 2007 Sooner Investment 25,215 0 0% $14.00 $15.00 YMCA of Edmond 289 S Santa Fe Ave Brad Goodwin Spinal Wellness Center Hampton Village 2010 The Palmer Company 22,958 6,160 26.83% $20.00 $25.00 Chipotle 1529 - 1601 S Broadway Chris Palmer Anytime Fitness, Kobe Homestead Center 2003 Price Edwards & Company 39,000 2,026 5.19% $15.00 $0.00 Sushi W Danforth Rd & N Santa EDMOND Fe Ave Susan Brinkley Buffalo Wild Wings Kelly Centre Shopping Center 2003 Matrix 43,763 14,350 32.79% $10.50 $10.50 Dance Makers 610 S Kelly Ave David Lide State Farm Kelly Plaza 1984 Price Edwards & Company 87,503 4,800 5.49% $7.50 $10.50 10 Gym, Family Dollar W Edmond Rd & S Kelly Ave Rosha Wood/susan Brinkley Elephant's Trunk Kickingbird Square 1983/88 Newmark Grubb Levy, Beffort 110,000 1,750 1.59% $14.00 $10.00 Interurban 1323 W Danforth Rd Jim Rose Little Caesars Market Depot 1965/2004 Westminster Real Estate 82,325 17,544 21.31% $12.00 $18.00 Charleston's Sears Home Town 3409 S. Broadway Rick Allen/Randy Allen Store North Oaks 1983/1989 Hayes Brokerage 70,672 18,750 26.53% $10.00 $12.00 Westlake Hardware Dollar General, My 821 W Danforth Rd Don Hayes Dentist Oak Brook 2016 Wiggin Properties 86,711 12,904 14.88% $12.50 $0.00 Hidalgo, Planet Fitness 2113 W Edmond Rd Don Faulkner Thrify Pharmacy Oxford Pointe Shops 1986 Price Edwards & Company 26,600 0 0% $12.00 $12.00 The Archives E 2nd St & S Bryant Ave Susan Brinkley The Vision Center Pebble Creek 2001 Key Investments 107,944 0 0% $18.00 $0.00 Kohl's, LA Fitness W Danforth Rd & N Santa Fe Ave Dollar Tree Shoppes at Edmond Uni- Wal Mart Neighbor- versity 2000 Price Edwards & Company 77,543 1,600 2.06% $22.00 $22.00 hood Market George Williams/Phillip Pei Wei, Half Price E 2nd St & S Bryant Ave Mazaheri Books Shoppes at Fox Lake 2016 Price Edwards & Company 27,300 9,702 35.54% $24.00 $22.00 Ortho Plus 941 W. I-35 Frontage Road George Williams Great Clips Shoppes On Broadway 2008 Price Edwards & Company 160,000 21,401 13.38% $18.00 $22.00 Hobby Lobby Susan Brinkley/Everest Ernst/ Bella Strada Spa & E 33rd St & S Broadway George Williams Salon Signal Shops 1986 Fotis Bargeliotes 35,000 0 0% $9.00 $10.00 Physician's PM 1700 S Kelly Ave Fotis Bargeliotes Daylight Donuts Spring Creek Plaza 2001 Ward Construction 64,000 0 0% $30.00 $30.00 Loft, New Balanace E 15th St & S Bryant Ave Amanda Ward, Kent Ward Panera Bread Spring Creek Village of Edmond 2007 Price Edwards & Company 72,273 23,176 32.07% $22.00 $28.00 Legacy Bank Susan Brinkley/Everest Ernst/ E 15th St & S Bryant Ave George Williams Starbucks, Lucca University Plaza 3 2000 Brady Properties 400,000 0 0% $16.00 $18.00 Target Super Center E 2nd St & S Bryant Ave Ali Ghaniabadi Lowe's Esperanza Real Estate Invest- Uptown Grocery Center 2011 ments 73,350 3,300 4.50% $24.00 $28.00 Uptown Grocery 1230 W. Covell Susan Binkoski Juice Blendz Cafe Willow Creek 1985 Coury Properties 31,200 0 0% $9.50 $0.00 Edward Jones E 2nd St & N Santa Fe Ave Tina Newton Family Dentistry Edmond Totals 2,879,097 273,770 9.51%

13 2017 Mid-Year Oklahoma City Retail Market Summary WEST–CENTRAL SUBMARKET

The West Central submarket continues to perform well, ending June 7.1 percent vacant, unchanged from a year earlier. Outlet Shoppes, now OKC Outlets, was purchased by TORG, and, along with Westgate Marketplace, anchor the retail along the Interstate 40 corridor. This corridor has seen one of the larger new developments this past year with the completion of The Market at Czech Hall which is anchored by Academy, Ross, & Ulta. There’s additional land for development south of The Market at Czech Hall that was to be part of the development, but this will be developed separately and not immediately. A planned grocer for the site has not materialized. The newer projects along Interstate 40, most of which are well-occupied, dominate the retail in this submarket. Westgate Marketplace, Yukon Village, and West End Pointe and the OKC Shoppes comprise nearly half the total product in the submarket. Westgate will at some point expand to the south side of Interstate 40. The corridor draws not only from the I-40 traffic but from a large swath of homes north of Interstate 40 that have limited access to retail, particularly new retail.

The Interstate 40 and Portland area, home to 38 stores, containing over 2.3 million square feet that specialize in furniture and accessories, remains the hub of furniture sales for the City. Mathis Brothers, after opening its new distribution center, is in progress of a major remodel of its flagship store at the corner of Interstate 44 & Interstate 40. WEST–CENTRAL

WEST−CENTRAL SUBMARKET WEST−CENTRAL SUBMARKET ABSORPTION VACANCY 200 10%

8% 150

6% 100 4%

50 (thousands of square feet) (thousands of square 2%

0 0% 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 14 2017 Mid-Year Oklahoma City Retail Market Summary WEST–CENTRAL SUBMARKET

Built/ Total Available West-Central Updated Leasing Agent Space Space Vacant Rate 1 Rate 2 Anchor Tenants 36th & May Center 1986 B.D. Eddie Enterprises 97,500 2,500 2.56% $10.00 $0.00 Pole Position Raceway SW 36th St & S May Ave Terry McGuire Ann Arbor Terrace 1971 By Owner 30,000 0 0% $6.00 $0.00 Feria Latina Super Market 4913 NW 23 St Ultimate Thrift Store Bethany Shopping Center 2016 Newmark Grubb Knight Frank 28,250 5,815 20.58% $15.00 $17.00 Sears Home Appliance 8000 NW 39th Michael Almaraz Chisholm Shopping Center 1972/2007 CBRE/OKLA 227,630 22,192 9.75% $12.00 $16.00 Planet Fitness, Hibbet Sports I-40 & Garth Brooks Blvd Ryan Storer/Stuart Graham Tuesday Morning, Sprouts DeVille Shopping Center 1962/1992/1994 Love Management 125,407 11,000 8.77% $5.00 $6.00 Buy For Less 2408 N. Council Road Heart & Hand Thrift Glen Oaks 1968/98 JAH Realty, L.P. 49,161 10,080 20.50% $18.00 $6.00 Westlake Hardware NW 23rd St & N Rockwell Ave Ethan Slavin Anytime Fitness Indiana Center 2002 By Owner 26,000 0 0% $5.00 $9.00 Discount Dollar Store 1708 N Indiana Ave Bad Granny's MacArthur Court 1985 CPG, LLC 51,198 31,400 61.33% $8.00 $12.00 Bank of Oklahoma 3804 N MacArthur Blvd John Gholami Red River Credit MacArthur Park 1997 Charles Shadid 55,506 0 0% $5.00 $8.00 Community Thrift Store 2300 N MacArthur Blvd Charles Shadid Queen of Sheba Restaurant Meridian Plaza 1959 Baker First Commercial Real Estate 84,402 19,082 22.61% $4.95 $6.99 James Lighting, Dollar General 4546 NW 16th St Rod Baker/Bill Reid H&R Block Morgan Creek Plaza 1988 Westbrook Properties 35,930 3,040 8.46% $10.05 $10.08 State Farm 1701 S Morgan Rd Gretchen Bybee Mustang Shopping Center 2004 Schostak Brothers & Company 35,846 3,200 8.93% $12.50 $0.00 Check'N Go, Anytime Fitness 216 N Mustang Mall Terr Rebecca Dragin Cato, Dollar Tree Mustang Trade Center 2015 Land Run Commercial 133,678 3,025 2.26% $19.00 $19.00 Dollar General, Subway Hwy 152 & S Mustang Rd. Troy Humphrey Yukon National Bank Old Mill 1974 National Properties 82,730 0 0% $8.00 $4.00 Locke Supply 301 Elm Ave Ray Wright OKC Outlets 2010 Horizon Group 430,835 14,000 3.25% $0.00 $0.00 Nike, The North Face NEC of 1-40 & Council Rd Mall Manager Coach Outlet, Gap Outlet Penn Crossing 1994 Price Edwards & Company 133,356 3,500 2.62% $8.00 $0.00 Wal Mart Neighborhood Market NW 23rd St & N Pennsyl- vania Ave George Williams Dollar Tree, Mazzio's, Westlake WEST–CENTRAL Plaza DeVille 1970/2012 Charles Shadid 26,892 6,470 24.06% $4.00 $8.00 Ingrid's Pantry 2409 N Council Road Charles Shadid Plaza Shoppes of Turtle Creek 1986/2000 Ferguson Company 32,600 10,223 31.36% $9.50 $10.00 Taco Bell Jim Ferguson/Lee Spivey/Debbie 915-951 S Cornwell Dr Servati Turtle Creek Wine & Liquor Portland Square 1958/1987 Charles Johnson, DDS 38,000 0 0% $4.00 $0.00 Sam's Wholesale Liquor NW 23rd St & N Portland Ave Chuck Johnson OK Family Thrift Rockglen Retail Center 1994 By Owner 25,308 7,800 30.82% $3.50 $0.00 Well Club 1500 N Rockwell Ave Shartel Plaza 1965 Pro Realty 40,736 0 0% $14.00 $16.00 CVS, Shartel Cafe 5225 N Shartel Ave Greg Downs Silver City Town Center 1974/1994 By Owner - Fields Investments 88,851 32,221 36.26% $6.00 $9.75 Tractor Supply 101 N Mustang Rd Salvation Army Ten-M 1958/1991 Corsair Estate 33,100 7,687 23.22% $8.28 $11.00 Beauty World NW 10th St & N Merid- ian Ave The Market at Czech Hall 2017 GBT 161,636 7,600 4.70% $12.00 $25.00 Academy, Ross NW 10th & Interstate 40 Ulta The Plaza at Stone Mill 2015 Price Edwards & Company 36,000 27,000 75% $15.00 $18.00 Pie 5 Pizza 1348 S Yukon Parkway George Williams Walnut Creek 1974 Charles Shadid 62,822 4,400 7% $3.00 $5.00 Thermo Roll Shutters 1110 N MacArthur Blvd Charles Shadid West End Pointe 2015 McGee Commercial Real Estate 522,500 3,500 0.67% $24.00 $24.00 Lowe's, Staples I-40 & Garth Brooks Blvd Chris Reed Kohl's, Gold's Gym West Pointe Shoppes 2006 By Owner 27,004 1,500 5.55% $10.00 $15.00 Ultimate Vision 300 S Mustang Rd SuperCuts West Pointe Shoppes Phase II 2008 Baker First Commercial Real Estate 27,004 2,700 10% $13.00 $13.00 State Farm, VIP Dental 700-742 S Mustang Rd Rod Baker Oklahoma Allergy & Asthma Wal Mart, Panera Bread, Home Westgate Marketplace 2000/2014 Zerby Interests 900,500 14,050 1.56% $16.00 $28.00 Depot Best Buy, Ulta, Dick's Sporting I-40 & S MacArthur Blvd Caleb Hill/Michael Rapella Goods Westoaks Village 1964 Baker First Commercial Real Estate 93,270 0 0% $3.90 $3.90 Family Dollar NW 10th St & N Rockwell Ave Lori Petit Cabinet Outlet Westpoint Plaza 2000 Newmark Grubb Levy Strange Beffort 25,680 0 0% $10.00 $12.00 Subway 320 S Mustang Rd Danny Ojeda Hunan Express Will Rogers 1982 Charles Shadid 160,000 6,000 3.75% $4.00 $6.00 Oriental Imports 3000 N Portland Ave Charles Shadid McSalty's Pizza Windsor Hills 1960/1998 Newmark Grubb Levy Strange Beffort 256,250 38,797 15.14% $7.00 $12.00 Crest Foods, Ross 4601 NW 23rd St Danny Ojeda DD's Discount Ci Ci's Pizza; Windsor Park Windsor Park 1982 Newmark Grubb Levy, Beffort 26,000 1,200 4.62% $14.00 $14.00 Pharmacy 2532 N Meridian Ave Michael Almaraz Jackson Hewitt Yukon Hills 1975 JAH Realty, L.P. 125,465 28,403 22.64% $15.00 $8.00 Dollar General S Cornwell Dr & E Vanda- ment Ave Ethan Slavin Buy For Less Yukon Shopping Center 2005 Schostak Brothers & Company 211,500 3,200 1.51% $14.00 $16.00 Dollar Tree I-40 & Garth Brooks Blvd Rebecca Dragin Cato Yukon Village 2009 Chase Properties 332,571 14,552 4.38% $0.00 $0.00 Target, Hobby Lobby I-40 & Garth Brooks Blvd John Barrett Big Lots, Petsmart West-Central Totals 4,881,118 346,137 7.09% 15 2017 Mid-Year Oklahoma City Retail Market Summary MOORE–NORMAN SUBMARKET

Over the past 10 years, the Moore-Norman market has been one of the most active markets for development and tenant activity. Occupancy over that period has remained consistently high, at mid-year it was 92.6 percent, down slightly from year-end. Parkway Plaza in Norman remains in receivership and has significant vacancy. The vacated Gordman’s at Riverwalk has also added vacancy to this submarket. No major new development was started in the first half of the year and none is expected in the near term. However, existing developments, like University Northpark, continue to add buildings, a significant number of 10 to 15,000 sf strip centers have been built, and stand-alone build-to-suit buildings have been added. The most high profile being the recently opened Winco on 19th Street. Overall, this submarket is a highly desirable location for retailers – incomes are good and housing density is high. MOORE–NORMAN

MOORE−NORMAN SUBMARKET MOORE−NORMAN SUBMARKET VACANCY ABSORPTION 8% 200

7% 150 6%

5% 100 4%

3% 50

2% (thousands of square feet) (thousands of square 0 1%

0% -50 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

16 2017 Mid-Year Oklahoma City Retail Market Summary MOORE–NORMAN SUBMARKET Available Moore-Norman Built/Updated Leasing Agent Total Space Space Vacant Rate 1 Rate 2 Anchor Tenants 550 24th Ave NW 1984/2011 Equity Commercial Realty 31,558 0 0% $13.00 $13.00 Sooner Bowling Center 550 24th Ave NW Judy Hatfield Remax/Elite Alameda Square 1984 Price Edwards & Company 93,858 12,139 12.93% $16.00 $10.00 Gold's Gym 12th Ave SE & E Alameda St Brandy Rundel Dollar Tree Anatole 1985 Equity Commercial Realty 64,555 11,978 18.55% $8.50 $14.00 Harbor Freight Tools 12th Ave SE & E Alameda St Gayla Artman Broadway Plaza 2004 Home Creations 34,000 7,000 20.59% $15.00 $15.00 Home Creations 2200 N Broadway St Mo Chico's, White House Black Brookhaven Village 1985 Price Edwards & Company 155,016 30,747 19.83% $0.00 $0.00 Market 36th Ave NW & W Robinson St Brandy Rundel The Health Club, The Loft Camden Village 2006/2014 Price Edwards & Company 31,100 3,900 12.54% $20.00 $0.00 Cheers, 1907 1003-1035 SW 19th St Rosha Wood Campus Corner Shops 1911/1993 Equity Commercial Realty, LLC 225,000 10,000 4.44% $16.00 $18.00 747, CVS 301 W Boyd St Judy Hatfield Louie's, Lucca Carriage Plaza 1983 Land Run Commercial 25,500 1,335 5.24% $16.00 $16.00 Silhouette Bridal 2001 W Main St Troy Humphrey Caymans, City Bites Center on Main 1965 Heather O'Connell 60,000 0 0% $0.00 $0.00 Firestone 500 Main St Heather O'Connell n/a Colonial Estates Ren. 1988 CBRE/OKLA 104,225 12,340 11.84% $9.00 $0.00 Cititrends, Smart Saver 12th Ave SE & E Lindsey St Ryan Storer/Stuart Graham Dollar General Cross Timber Retail Center 2016 CBRE/OKLA 24,331 5,600 23.02% $22.00 $22.00 Pub W Stuart Graham/Ryan Storer/Mark 10740 S May Avenue Inman SuperCuts Downtown Shopping Center 1974/2009 Brady Properties 50,000 0 0% $8.00 $8.00 Sprouts 555 W Main Street Ali Ghaniabadi Cellar Wine and Spirits Newmark Grubb Levy Strange Eastmoore Shopping Center 2006 Beffort 24,484 2,200 8.99% $12.00 $12.00 Dollar General, Subway Cleveland County Health 811 SE 4th Daniel Ojeda/Jay Cohlmia Dept. Empire Plaza 2006 Dillard Group 30,000 1,490 4.97% $15.00 $15.00 Subway 3040- 3058 Classen Blvd Scott Heiple Athletic Loft Fritts Farm 2006/2012 Direct Development 453,550 0 0% $24.00 $26.00 Home Depot,Hemisphere's SW 19th Street & Telephone Target; Dick's Sporting Rd Melanie Dickenson Goods Heisman Square 1999 CBRE/OKLA 93,000 0 0% $13.00 $15.00 Homeland, Ace Hardware 12th Ave SE & E Alameda St Stuart Graham/Ryan Storer At the Beach

Hollywood Center 1964 Capital Realty 127,600 0 0% $0.00 $0.00 Homeland MOORE–NORMAN 1600 W Lindsey St Wendy Foreman Hancock Fabric Madison Square Shopping Center 2014 Price Edwards & Company 45,070 20,846 46.25% $18.00 $22.00 BA Fitness, Sherwin Williams 480 24th NW Rosha Wood Float OKC Malibu Shopping Center Gerald Gamble Co. 21,000 0 0% $12.00 $0.00 Armstrong McCall 824 NW 12th St Gerald Gamble Rent-A-Center Merkle Creek 1985 Equity Commercial Realty, LLC 33,753 2,239 6.63% $15.00 $15.00 Red Horse Grill 2203 W Main St Gayla Artman Play It Again Sports Moore Towne Center 2005 Baker First Commercial Real Estate 35,000 4,895 13.99% $18.50 $18.50 McAlester's I-35 & SW 19th St Rod Baker Mazzios Pizza Aarons, Supermercados New City Center 1963/1998 Precor Ruffin, LLC 181,894 11,219 6.17% $9.00 $9.00 Morelos 605 N Moore Ave. Rick Pritchett Family Dollar Normandy Creek 1990 Raptor Properties 69,558 11,200 16.10% $13.00 $15.00 Hastings, Party Galaxy 2200 W Main St Heidi Vanlandingham Panera Bread North Park Center 1960 Owner managed 37,000 12,000 32.43% $8.00 $10.00 Liquor Market 1024 N Flood Orthopedic-Spine & Sports Oklahoma Business Center 2005 Price Edwards & Company 50,964 6,480 12.71% $15.00 $15.00 PT 1700 - 1704 S Broadway Susan Brinkley Parkway Plaza 1996 Gemini Real Estate Advisors 375,000 48,466 12.92% $19.00 $19.00 Barnes & Noble 520 - 700 Ed Noble Parkway Nancy Thomas Bed Bath & Beyond Redbud Plaza 2016 Equity Commercial Realty 23,473 5,322 22.67% $17.00 $17.50 Gymboree, Gaberino's 239 & 247 34th Ave SW Gayla Artman Juan Del Fruego's Riverwalk Centre 2000 CBRE/OKLA 165,665 64,427 38.89% $18.00 $12.00 Maurice's Ryan Storer/Stuart Graham/Mark I-35 & SW 19th St Inman Kohls Riverwalk Plaza 2000 Precor Ruffin, LLC 26,939 2,853 10.59% $12.00 $18.00 Midwest Regional Hospital 2109-2139 Riverwalk Dr Rick Pritchett Integris Physical Therapy Riverwalk Shops 2006 CBRE/OKLA 33,166 6,000 18.09% $18.50 $20.00 Alfredo's 2713 S I-35 Service Rd Ryan Storer/Stuart Graham Cox Communications Robinson Crossing 1986/1989 Brady's Properties 116,400 23,717 20.38% $12.00 $6.00 Dominos Pizza 1300 N Interstate Dr Ali Ghaniabadi Royal Rock 2010-2015 Various 45,500 0 0% $25.00 $18.00 T-Mobile, H&R Block 19th & Fritts Blvd. Schlotzsky's Newmark Grubb Levy Strange 39,204 6,475 16.52% $18.50 $18.50 Wal Mart Neighborhood Shoppes At Crimson Park 2005 Beffort Market 2627 N Classen Blvd John Cohlmia Shops at Moore Power Center 2007/2014 Kite Realty 568,679 0 0% $16.50 $23.00 Ross, Bed Bath & Beyond 2650 S I-35 Rd Karly Kilroy/Jeff Wright Best Buy, Hobby Lobby Silver Leaf 1985 Bright Star Realty 110,740 7,500 6.77% $8.50 $15.00 Silverleaf Furniture NE 12th St & N Eastern Ave Sun Lee Family Dollar Sooner Mall 1976/1999 General Growth Properties 511,569 8,000 1.56% $0.00 $0.00 Dillard's I-35 & W Main St Luke Kim Sears Sooner Shopping Center 1966 Buchanan Realty 50,000 4,417 8.83% $0.00 $0.00 Genesis Church NW 5th St & N Broadway St Steve Buchanan,Debbie Butler Sooner West Plaza 1981 Equity Commercial Realty, LLC 68,440 35,500 51.87% $17.00 $18.00 Tuesday Morning 36th Ave SW & W Main St Gayla Artman Stubbeman Village 1972 University of Oklahoma 33,475 0 0% $0.00 $0.00 Chapala Mexican Grill Elm Ave & Elmwood Dr Ratcliffe's Bookstore The Main Center 2005 HEW Marketing, Inc. 106,307 0 0% $0.00 $9.00 Hobby Lobby 24th & Main St Heather Warrington Mardel's University Town Center 2008 CBRE/OKLA 1,097,119 29,000 2.64% $14.00 $31.00 Kohl's, Target, Crest 1500 24th Ave NW Mark Inman/Stuart Graham Academy, HomeGoods West Port Shopping Center 1980 NAI Sullivan 40,898 0 0% $8.00 $14.50 Moore Family Clinic 1200 N Santa Fe Ave David Hartnack GFF Foods Moore-Norman Totals 5,514,590 409,285 7.42% 17 2017 Mid-Year Oklahoma City Retail Market Summary EASTERN OK COUNTY SUBMARKET

Both the 2016 major new developments in the submarket, Sooner Rose at 15th and Sooner Road and, the renovation of Northeast Town Center on 36th Street and Lottie have shown progress. In addition to Academy & Hobby Lobby, Sooner Rose has announced the addition of a Warren Theater (with the help of significant city assistance) and some phase 2 junior anchor/small shop space. Northeast Town Center has secured Save-A-Lot grocer as its anchor. Winco is under construction at the former Target site at 7601 East Reno. Overall, new retail in this submarket continues to perform well while there remains a significant amount of product that is older, several of which have significant deferred maintenance or difficult configurations. Five centers in this submarket remain over 30 percent vacant.

As a result, the submarket vacancy rate is the highest in the metropolitan area, 16.1 percent at mid-year. While still high, this is an improvement from 17.5 percent at mid-year 2016. The improvement comes primarily from the addition of the new fully leased projects and the high occupancy rate of newer product.

EASTERN OK COUNTY SUBMARKET VACANCY 20% EASTERN OKLAHOMA COUNTY

15%

10%

0% 2013 2014 2015 2016 2017

EASTERN OK COUNTY SUBMARKET ABSORPTION 250

200

150

100

-50 (thousands of square feet) (thousands of square -100

-150 2013 2014 2015 2016 2017

18 2017 Mid-Year Oklahoma City Retail Market Summary EASTERN OK COUNTY SUBMARKET

Total Available Eastern OK County Built/Updated Leasing Agent Space Space Vacant Rate 1 Rate 2 Anchor Tenants 23 Post Plaza 1986 Nancy Brewer 35,000 0 0% $7.00 $0.00 Spencer's Smokehouse NE 23rd St & N Post Rd Nancy Brewer Farmer's Insurance Boulevard Marketplace 1984 Benchmark Opportunity Partners 35,765 8,845 24.73% $16.00 $18.00 Crest Grocery 101 N Douglas Ave Seth Grubstein/Randy Twist Dollar Tree Williams Discount Foods, Choctaw Plaza 1974/1984 Newmark Grubb Knight Frank 131,000 44,334 33.84% $6.95 $6.95 Chase Bank 14407 NE 23rd St Michael Almaraz Dollar General Decker Center 1982 Brady's Properties 33,500 3,400 10.15% $12.00 $6.00 Cool Smile 1200 S Air Depot Blvd Ali Ghaniabadi FedEx Gold's Gym, Family Del Crest Center 1957/2016 Price Edwards & Company 95,563 4,900 5.13% $0.00 $0.00 Dollar SE 15th & I-40 Brandy Rundel Harbor Freight Del Crest Shops 1957/2016 Price Edwards & Company 57,770 20,826 36.05% $0.00 $0.00 Save-A-Lot SE 15th & Sunnylane Karleen Krywucki/Ev Ernst Dixon Plaza 1978/1980 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 1965 North Star 51,052 0 0% $0.00 $0.00 Family Dollar 1100 N Midwest Blvd Joseph Atkinson Gateway Plaza 1985 CBRE/OKLA 87,512 55,012 62.86% $10.00 $12.50 Dollar Tree SE 15th St & S Air Depot Blvd Stuart Graham Sally Beauty Supply Hartsdel 1995 Charles Shadid 50,000 12,687 25.37% $4.00 $7.00 Family Dollar SE 44th St & S Bryant Ave Charles Shadid Beauty Supply Heritage Plaza 1987 GBR Properties,Inc. 75,071 27,577 36.73% $7.00 $11.00 Edward Jones 351 N Air Depot Blvd Randy Vaillancourt Economy Hearing Aid

Holiday Square 1974 Equity Commercial Realty 86,652 22,000 25.39% $8.00 $13.60 The Dance Department COUNTY OKLAHOMA EASTERN 1100 S Air Depot Blvd Mark Hyde Los Vacqueros Northeast Town Center 1970/2017 Price Edwards & Company 96,000 60,225 62.73% $8.00 $12.00 Save-A-Lot, ICE Susan Brinkley/Ev Ernst/George 1124 NE 36th St Williams Oakcliff Shopping Center 1966 Charles Shadid 51,000 7,600 14.90% $5.00 $5.00 Tom's Tires 3102 SE 44th Street Charles Shadid Karen's Treasures Park Estates 1952 Shapard Properties,Inc. 38,000 10,500 27.63% $0.00 $0.00 Ron's Cleaners NE 36th & N Kelly Ave Bill Shapard Park Plaza 1993 Charles Shadid 38,268 19,900 52% $3.00 $4.00 Diva Beauty Supply 3700 Springlake Dr Charles Shadid Leo's Supper Club Shops at Del City 2012 CBRE/OKLA 28,160 0 0% $0.00 $0.00 Ted's Cafe Escondido The Garage, Volcano I-40 & Sooner Rd Stuart Graham/Ryan Storer Sushi Sooner Market Place 1995 Charles Shadid 63,013 9,780 15.52% $4.00 $7.50 Chelino's E Reno Ave & N Sooner Rd Charles Shadid Speed Mart Sooner Rose 2016 Price Edwards & Company 190,000 0 0% $12.00 $25.00 Hobby Lobby SE 15th & Sooner Road Brandy Rundel Academy Spencer's Center 2000 Charles Shadid 40,000 7,500 18.75% $3.00 $5.00 Conoco NE 23rd St & N Spencer Rd Charles Shadid Discount Beauty Supply Cricket, Advance Sunnylane Plaza 1979 Owner managed 84,888 40,000 47.12% $6.00 $5.00 America SE44th St & S Sunnylane Rd Tan & Tone America Center 2005 Ta Real Estate 25,300 0 0% $7.00 $12.00 Super Cuts 1900 S Air Depot Blvd My Dentist Tenth Street Plaza 1960 Owner managed 33,000 0 0% $6.00 $0.00 Dollar General 9207 NE 10th St The Village Shopping Center 1973 Michael Biddinger Real Estate 32,353 2,350 7.26% $7.00 $7.00 Rent-A-Center Akropolis Greek Res- 4720 - 4754 SE 29th St Meagan Royer taurant Town & Country Center 1966/2015 Price Edwards & Company 133,916 12,096 9.00% $9.50 $16.00 Ross, Big Lots, CityGear Rosha Wood/Ev Ernst/George Ace Hardware, Aarons, E Reno Ave & N Air Depot Ave Williams CitiTrends Town Center Plaza 2005 Sooner Investment 795,000 2,415 0.30% $24.00 $0.00 Target, J C Penney SE 29th St & S Air Depot Blvd Brad Goodwin Lowe's, Kohl's Uptown Plaza 1958/2006 Price Edwards & Company 194,033 55,371 28.54% $15.00 $22.00 Langston's, Family Dollar Tuesday Morning, Locke 7430 SE15th St Brandy Rundel/George Williams Supply Village Oak Plaza 1981 Brady Properties 27,500 6,200 22.55% $6.00 $8.00 Lupe's Restaurant 1000 S Douglas Blvd Ali Ghaniabadi Papa John Pizza Angel's Furniture, 23rd Westminster Shopping Center 1963 Owner managed 58,000 900 1.55% $5.00 $6.00 Street Auction NE 23rd St & S Westminster Rd Miles Millwork Eastern OK County Totals 2,702,216 434,418 16.13%

19 RETAIL MARKET SALES SUMMARY

Retail Investment Sales

The January purchase of 240 Penn Park by RCG Ventures and the May purchase of OKC Outlets by TORG together totaled $157.7 million of the total sales for the first half of the year of $173.5 million. This is both buyers’ first Oklahoma purchase. Both of these transactions were unique in that 240 Penn Park was included in a package that included a Colorado property; and, OKC Outlets is a specialty use property. Otherwise, the uncertainty that characterizes the broader retail economy appears to have also effected investment sales. The remaining four property sales totaled only 219,000 square feet and $15.8 million. There remain significantly more buyers in the market than sellers. As part of a countrywide trend, one group of buyers, the larger institutional real estate firms, have generally not bid on the last couple of institutional grade retail properties in our market, resulting in an at least 100 basis point increase in capitalization rates for class A properties. This trend may open the door for more local and regional investors to buy up in quality. Expect the current turbulence retailers are experiencing to create opportunities for these retail investors.

2017 Shopping Center Sales

Property Address Square Feet Sales Price Price PSF Sale Date

240 Penn Park Shopping Center 1453 I-240 Service Road 231,585 $29,050,000 $125.44 1/31/17 Oklahoma City, OK Penn-Hefner Plaza 2121 W Hefner Road 67,805 $2,800,000 $41.29 1/18/17 Oklahoma City, OK Silverleaf Shopping Cneter 1254 N Eastern 66,943 $4,974,000 $74.30 2/16/17 Walnut Village 12305 N Rockwell 53,088 $5,850,000 $110.19 3/29/17 Willow Creek Shopping Center 322 S Santa Fe Ave 31,200 $2,175,000 $69.71 5/1/17 OKC Outlet Mall 7638 W Reno 388,079 $128,625,000 $331.44 5/2/17

Totals 838,700 $173,474,000 WalkableRetail Urban areas still doing well nationwide

by ALLISON BARTA BAILEY Retail Broker | Price Edwards & Company

Amidst the resetting of the market and minimizing of s restaurants have emerged as the anchors for our notable chains via bankruptcies and store closings this urban districts and as retailers continue to find their year, walkable commercial districts have survived rela- niche with Amazon nipping at their heels, local shops tively well nationwide. have experienced growing pains. A recent blog article from Collected Thread in the Plaza District* is worth Locally, we’ve seen the opening of a decent amount reading if local shops play a role in your real estate of retail and restaurant operators in the urban core. endeavors. Owner Lindsay Zodrow shares the struggle Including: Hall’s Pizza Kitchen, Baker Street Escapes, that 2017 has been for her local shop and many of her 405 Yoga, Beyond Studios, OK Runner, The Manhat- colleagues. I fear that we may see a few closures from tan, Jones Assembly, Twisted Spike Brewery (late urban core shops in the upcoming year. 2016), Insomnia Cookies, Brown Interiors, Common- place Books, Urbun, Bunker Club, Aurora and Easy E. One thing that we can do is support these local busi- nesses (pioneers) in our urban core - not only from Several notable projects that contain retail are also un- a real estate perspective, but also as customers. As derway: First National Center, 1212 Hudson, two proj- our downtown continues to be established for retail- ects on 8th street between Broadway and Oklahoma, ers, every dollar spent at these small shops adds to Steelyard, West Village and 23rd & Hudson. We hope their viability in the area. Yes, you can order a book to see the Spaghetti Warehouse building added to that through Amazon in a few minutes, but you can’t get list sometime in the next year as well. the experience of thumbing through nice paper covers while sniffing a signature candle scent after discuss- Our commercial districts, or as Garrick Brown of Cush- ing curated recommendations from the owner at Com- man Wakefield calls “cool streets,” offer an urban ex- monplace Books. perience in addition to a purchasing opportunity and are largely populated with local, independent operators. The vacancy in established buildings in these dis- * To View the Collected Thread article, visit: tricts has remained relatively low, but new retail space https://collectedthread.com/blogs/news/fight-for-us at higher rent rates has been slower to absorb.

21 5.1 MILLION square feet of office and industrial space

3.9 MILLION square feet of retail space

3,600 multifamily units

$5 BILLION in closed transactions

OKLAHOMA’S LEADING COMMERCIAL REAL ESTATE FIRM

Price Edwards & Company | 210 Park Avenue, Suite 700, Oklahoma City, OK 73102 | Phone (405) 843-7474 | Fax (405) 236-1849 www.priceedwards.com