Retail Analysis INTRODUCTION ...... 1 Figure 1: City Centre Retail ...... 1 Executive Summary ...... 1 Figure 2: Southfield City Centre District Aerial ...... 2 Table 1: Supportable Retail Summary ...... 3 Background ...... 3 Figure 3: Southfield City Centre District Map ...... 4 Figure 4: Primary Trade Area Map ...... 5 Methodology ...... 5 Figure 5: Southfield City Centre District Photos ...... 6 Study Assumptions ...... 6 Figure 6: Southfield City Centre District Quick Service Dining Establishments...... 7 Key Definitions ...... 7 Limits of Study ...... 8 Trade Area ...... 9 Figure 7: Primary and Total Trade Area Map ...... 10 Demographic Characteristics ...... 11 Table 2: Demographic Comparison Table...... 11 Tapestry Lifestyles...... 12 Table 3: Tapestry Lifestyles ...... 12 Tapestry Lifestyles Segmentation ...... 14 Figure 8: Tapestry Lifestyles Segmentation Chart ...... 14 Employment Base ...... 15 Table 4: Employment by Sector ...... 15 Table 5: Office Worker Employment by Sector ...... 16 Table 6: Office Worker Expenditure ...... 17 Figure 9: The City Centre‘s primary trade area ...... 18

TRADE AREA CHARACTERISTICS ...... 18 Location ...... 18 Figure 10: Lawrence Technological University and Residential Photos ...... 19 Access ...... 19 Table 7: Traffic Counts ...... 20 Other Shopping Areas ...... 20 Table 8: Existing Neighborhood and Community Centers ...... 21 Table 9: Existing Regional and Lifestyle Centers ...... 22 Figure 11: Neighborhood and Community Retail Location Map ...... 22 Figure 12: Community Retail Location Map, Southern Portion ...... 23 Figure 13: Kroger Anchors the Mid-Eleven Mall Photo ...... 23 Figure 14: Supermarket Trade Area Location Map ...... 24 Figure 15: Regional and Lifestyle Retail Location Map ...... 25 Figure 16: Birmingham, a Walkable Urban Center Photo ...... 26 Northland Center Mall ...... 26 Figure 17: Northland Center Photos ...... 26 Figure 18: Tel-Twelve Mall Photos...... 27 Tel-Twelve Mall ...... 27 Gateway and Hunter‘s Square ...... 27 Figure 19: Orchard Lake Road Shopping Corridor Photos ...... 27

Figure 20: Orchard Lake Road Upscale Shopping Photos ...... 28 Orchard Lake Road ...... 28 Midtown Square ...... 28 Figure 21: Midtown Square Photos ...... 28 Figure 22: Fairlane Town Center Photos ...... 29 Fairlane Town Center ...... 29 Figure 23: Fairlane Green Photos ...... 29 Fairlane Green ...... 30 Figure 24: Downtown Shopping Districts Location Map ...... 30 Figure 25: Downtown Birmingham Photos...... 31 Birmingham ...... 31 Figure 26: Downtown Royal Oak and Ferndale Photos ...... 31 Downtown Royal Oak and Ferndale ...... 32 Figure 27: Mixed-use Town Centers: The Glen Town Center ...... 32

SUMMARY OF FINDINGS ...... 32 Figure 28: City Centre Retail Examples ...... 33 Supportable 2011 Retail and Potential Tenants ...... 33 Figure 29: Beaumont Hospital Photo ...... 35 Rationale...... 35

APPENDIX Exhibit A: Recommended Supportable Retail Table ...... 37 Exhibit B: Community and Regional Competition Table ...... 38 Exhibit C: Business-Facts: WorkPlace and Employment Summary ...... 43 Exhibit D: Employment by Industry ...... 45 Exhibit E: Full Employment Table ...... 47 Exhibit F: Market Profile Table ...... 49 Exhibit G: Population by Age Table ...... 57 Exhibit H: Income Profile Table ...... 63 Exhibit I: Demographic and Income Table ...... 64 Exhibit J: Primary Tapestry Lifestyles Table ...... 66 Exhibit K: Tapestry Lifestyle Segment Descriptions ...... 68 Exhibit L: Housing Profile Table ...... 78

INTRODUCTION

Figure 1: The City Centre area can support up to an additional 645,000 square feet of new retailers generating up to $252 million in gross sales revenues by 2016.

Executive Summary This study finds that the Southfield City Centre District can presently support an additional 645,000 square feet (sf) of retail and restaurant development, generating up to $240.7 million in gross sales revenues, growing to $252 million by 2016. The demand could partially be absorbed by the expansion of existing businesses, and the development of neighborhood, community, lifestyle and/or regional centers that include two department stores and 60-85 new restaurants and retailers. This existing commercial void exists for non-market factors such as the lack of modern shopping centers and coordinated leasing and development activities.

While numerous shopping centers and downtowns ring the subject site, its considerable residential and daytime employment base is under-served with most retail categories including: apparel, department stores, home furnishings, groceries and restaurants. As a result, its consumer base must drive a considerable distance for many of the commercial businesses and brands that they need and desire. The area‘s market demand, employment base and adjacent civic center, combined with the lack of a walkable, mixed-use main street-type center such as the Village of Rochester Hills, creates a unique opportunity to develop a town center with a broad appeal to many leading retailers.

The city is located in southeast Michigan, directly adjacent to Detroit‘s northwest Eight Mile Road border. The Southfield City Centre District [Figures 1 & 3] is the roughly triangular area defined by Evergreen Road, Interstate 696 and the Lodge Freeway (M- 10). The District‘s boundary extends outward from this triangle in two places to include Southfield‘s Municipal Complex and Lawrence Technological University. The existing

Southfield Retail Analysis 1. Gibbs Planning Group, Inc. 4 January 2012

retail in the District is mostly limited to small convenience stores, bank branch offices and full- and limited-service restaurants, but exceptional freeway and local artery access, along with significant consumer expenditure leakage from the trade areas, offers potential to expand the scale to include a wide range of local, regional and national regional retailers.

Figure 2: The Southfield City Centre District, looking north (inside the yellow lines). Interstate 696 runs from left to right along the top of the photograph while the Lodge Freeway (M-10) extends from top left to bottom right. The District includes the Southfield Municipal Complex (right center), Lawrence Technological University (bottom left corner, and a concentration of high-rise office buildings, along with additional low-rise office and residential development (Bing Maps).

For the third quarter of 2011, retail vacancy rates in the south Oakland County submarket for both neighborhood and community centers are lower in this submarket than in the Detroit market as a whole (13.3 and 10 percent, respectively, for the submarket, as compared with 13.8 and 10.7 percent, respectively, for the Detroit market). Average asking retail lease rates, at $13.47 per sf triple net for neighborhood centers and $12.18 for community-sized centers, have experienced virtually no change from one year ago; however, they have recovered from their 2009 and 2010 low points and continued to make overall positive improvement throughout 2011.

This study further finds that the City Centre District has a primary trade area population of nearly 500,000 persons, decreasing slightly to 483,000 persons by 2015. Southfield enjoys easy access from most of the surrounding Oakland and Wayne Counties. Oakland County, one of the wealthiest in the U.S., has average household incomes of $69,000 in the primary trade area, slightly higher than the state average and slightly lower than the national average. The area‘s per capita income ($27,000) is only slightly greater than the state and national levels. The primary trade area has a labor base of 187,000 employees, with 65 percent holding white-collar positions.

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Table 1: 2011 Supportable Retail Summary

Retail Category SF Number of Stores per Category

Apparel & Shoes 68,000 sf 25-30 Stores

Department Stores 263,500 sf 2-4 Stores

Electronics 27,000 sf 4-5 Stores

Grocery Stores-Markets 72,500 sf 4-5 Stores

Hardware & Lawn Care 5,000 sf 1-2 Stores

Home Furnishings Stores 38,000 sf 10-12 Stores

Misc. Stores 19,000 sf 15-20 Stores Office Supply, Stationery/Card 16,000 sf 3-6 Stores & Gift Stores Pharmacy/Drug Stores 14,000 sf 1-2 Stores

Restaurants 99,000 sf 20-25 Restaurants

Sporting Goods/Books 23,000 sf 4-6 Stores

Total 645,000 sf 90-120 Restaurants and Stores

Background Gibbs Planning Group Inc. (GPG) has been retained by the City of Southfield, City Centre Advisory Board to conduct a retail feasibility analysis for the Southfield City Centre District, which includes the area immediately surrounding the Municipal Complex and Lawrence Technological University. The City Centre District consists of what can be considered the central business district of this major suburban city, and is located at the cross roads of Southeast Michigan, between Evergreen Road, the Lodge Freeway (M-10) and Interstate 696.

The area comprising the City Centre District remained undeveloped until the 1950s, when Lawrence Technological University relocated to the area. In 1960, development of the Municipal Complex commenced to serve a newly incorporated city facing rapid postwar growth. The region‘s first regional shopping mall, Northland, opened in 1954 just two miles southeast of the district in 1954. The area soon after attained an agglomeration of modern high-rise office, hotel and residential development known as Southfield Town Center, constructed in phases from the mid-1970s to the late-1980s. Although the City Centre District is a major node of commercial activity, major retail development has never occurred; retail is limited to convenience-oriented establishments, serving the daytime office worker, and the student and visitor population in the Southfield Town Center and Municipal Complex, as well as Lawrence Technological University.

Although the consumer base in Southfield, Michigan is stable, strong and sustainable, retail growth will be difficult until the local unemployment level (13.0 percent) drops to the state (10.6 percent) or national (8.6 percent) levels.

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10 Mile Road

Figure 3: I-696, the Lodge Freeway (M-10) and Evergreen Road form the border of the Southfield City Centre District, with additions made to the south and east incorporating the Southfield Municipal Complex and Lawrence Technological University.

The following issues are addressed in this study:

What is the existing and planned retail market development in the City Centre District and its trade areas?

What are the primary and secondary trade areas for the City Centre District?

What are the population, demographic and lifestyle characteristics in the trade areas, currently and projected for 2015?

What is the current and projected growth for retail expenditures, now and for the next five years?

How much additional market rate retail square footage is supportable in the City Centre District and what retail uses should be encouraged? What sales volumes can new retail development achieve in or near the District?

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Figure 4: Consumers in the primary trade area account for 70 to 80 percent of the business generated in the City Centre District.

Methodology To address the above issues, GPG conducted a detailed evaluation of most major existing shopping centers and retail concentrations in and surrounding the City Centre District, including the primary and secondary trade areas. The evaluation was conducted in November and December 2011. During this evaluation, GPG visited and evaluated most of the major and planned retail concentrations in the area.

GPG visited the area during the daytime, as well as the evening, to gain a qualitative understanding of the retail gravitational patterns and traffic patterns throughout the area. GPG then defined a trade area that would serve the retail in the City Centre District, based on the field evaluation, geographical and topographical considerations, traffic access/flow in the area, relative retail strengths and weaknesses of the competition, concentrations of daytime employment, and the retail gravitation in the market, as well as our experience defining trade areas for similar markets. Population, consumer expenditure and demographic characteristics of trade area residents by census tracts were collected from the US Bureau of the Census, US Bureau of Labor Statistics, InfoUSA, and ESRI, and updated based on information gathered from local planning sources.

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Finally, based on the projected consumer expenditure capture (demand), in the estimated City Centre District trade areas, of the gross consumer expenditure by retail category less the current existing retail sales (supply) by retail category, GPG projects the potential net consumer expenditure (gap) available to support new development. The projected net consumer expenditure capture is based on household expenditure and demographic characteristics of the primary and secondary trade areas, existing and planned retail competition, traffic and retail gravitational patterns, and GPG‘s qualitative assessment of the District. Net potential captured consumer expenditure (gap) is equated to potential retail development square footage with the help of retail sales per square foot data provided by Dollars and Cents of Shopping Centers (Urban Land Institute and International Council of Shopping Centers), qualitatively adjusted to fit the urbanism of the District study area.

Figure 5: The City Centre District contains a mix of office towers, residential units and civic institutions.

Study Assumptions For the purposes of this study, GPG has assumed the following:

Other major community retail centers may be planned or proposed, but only the existing retail is considered for this study. The quality of the existing retail trade located within the defined trade areas in the Southfield City Centre District is projected to remain constant. Gains in future average retail sales per sf reflect higher sales per sf in newly developed retail and selected increases in sales per sf by individual retail categories.

No major regional retail centers will be developed within the trade areas defined by this study through 2016.

The City Centre District area is properly zoned to support infill and redevelopment projects with current and innovative standards, and the existing infrastructure (water, sewer, arterial roadways, etc.) can support additional commercial development.

Annual population growth for the primary trade area is estimated to be six-tenths of one percent (-0.61 percent) throughout the five-year period of this study.

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Employment distribution is projected to remain constant, without a spike or decline in employment by NAICS categories.

The projected lease and vacancy rate model is based on our proprietary econometric model of the relationship between changes in employment and changes in vacancy and lease rates. Data were gathered from the US Census Bureau, ESRI, CBRE, LOOPNET, REIS, and local brokerage services.

The region‘s economy will continue at normal or above normal ranges of employment, inflation, retail demand, and growth.

Any new construction in the City Centre District will be planned, designed, built, and managed to the best practices of The American Institute of Architects, The American Planning Association, The Congress for the New Urbanism, The International Council of Shopping Centers, and The Urban Land Institute.

Parking for new development projects or businesses will meet or exceed the industry standards. GPG has noted that the existing parking is apparently adequate for present amounts of commercial, but that additional parking may be necessary if the existing vacancies become occupied or new higher sales businesses deploy in the City Centre.

Visibility of any new retail is assumed very good, with signage as required to assure easy visibility of the retailers.

Infill or redevelopment projects in the District will open with sustainable amounts of retail and anchor tenants, at planned intervals and per industry standards.

Figure 6: The large concentration of office workers, students, and other employees in the Southfield City Centre District results in high lunchtime traffic, both at the limited number of quick service restaurants within the District (right) and in other nearby convenience centers, such as Cloverleaf Plaza (left), located at Telegraph and 12 Mile Roads, one mile to the northwest.

Key Definitions This study utilizes the shopping center typologies defined by the International Council of Shopping Centers (ICSC) as follows:

Convenience Centers: Convenience centers are 30,000 square feet or less, unanchored, and generally will service a trade area of up to one mile. These centers include: banking, carryout foods, florists, mail centers, small restaurants, small food markets, and professional services such as real estate and financial consulting. The centers typically include six to eight businesses.

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Neighborhood Centers: Neighborhood centers are anchored with a full-sized supermarket and typically range from 60,000 to 100, 000 square feet. They service a trade area of two to three miles and can include apparel, banks, carryout food, hardware, mail centers, restaurants, sporting goods, and professional services such as financial consulting and real estate.

Community Centers: Community centers typically range from 150,000 to 300,000 square feet and are almost always anchored with a full-sized department store. They also include junior anchor retailers selling books, crafts, shoes, and sporting goods. Community centers often include large home improvement stores and medium-sized discount apparel stores. Their service area is typically five to seven miles in suburban locations.

Lifestyle Centers: Lifestyle centers average 150,000 to 200,000 square feet and feature popular apparel, book, and home furnishing stores, as well as cinemas and a wide selection of themed restaurants. The centers are frequently planned as walkable areas with main streets. Recently, lifestyle centers have included large anchors such as department stores, public libraries, and supermarkets. These centers typically have a trade area of four to six miles when developed in suburban settings. Lifestyle centers that include civic, employment, and residential buildings along with the retail land use are defined as ‗town centers.‘

Regional Centers: Regional centers average trade areas of eight to 12 miles and are anchored with multiple department stores. The centers can range from 800,000 to 1,500,000 square feet, and often include cinemas along with 200,000 square feet of national brand fashion.

This study also utilizes the trade area typologies as defined by MapInfo and listed below:

Primary Trade Area: The primary trade area (PTA) refers to that area from which the retail offerings at the site will draw approximately 70 to 75 percent of their business, and includes a population base that will make the area a primary shopping destination by typically shopping there on a weekly basis.

Secondary Trade Area: The secondary trade area (STA) represents that area from which the site will draw an additional 10 to 15 percent of its business. Those residents who live in the STA, but not within the PTA, will shop the retail zone frequently (one to two times a month), but the area will not be their primary shopping destination.

Tertiary Trade Area: The tertiary trade area accounts for additional retail expenditures that the area derives from more distant communities that may not shop at the subject retail zone on a regular basis in, but will consistently account for some percentage of sales.

Limits of Study The findings of this study represent GPG‘s best estimates for the amounts and types of retail projects that should be supportable in the Southfield City Centre District. Every reasonable effort has been made to ensure that the data contained in this study reflect the most accurate and timely information possible and are believed to be reliable. This study is based on estimates, assumptions, and other information developed by GPG‘s 8. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

independent research effort, general knowledge of the industry, and consultations with the client and its representatives. This study is designed as objective third party research and GPG does not recommend that any or all of the supportable retail be developed in the District.

No responsibility is assumed for inaccuracies in reporting by the client, its agent and representatives, or in any other data source used in preparing or presenting this study. This report is based on information that was current as of December 20, 2011, and GPG has not undertaken any update of its research effort since such date.

This report may contain prospective financial information, estimates, or opinions that represent GPG‘s view of reasonable expectations at a particular time, but such information, estimates, or opinions are not offered as predictions or assurances that a particular level of income or profit will be achieved, that particular events will occur, or that a particular price will be offered or accepted.

This study should not be the sole basis for programming, planning, designing, financing, or development of any commercial center. This study is for the use of the City of Southfield, City Centre Advisory Board for general planning purposes only, and is void for other site locations, retailers or real estate developers.

Trade Area Based on GPG‘s field evaluation, the existing retail hubs, population clusters, highway access, and the retail gravitation in the market, as well as our experience defining trade areas for similar communities throughout the United States, GPG determined that consumers in the Southfield trade area generate demand to support a wide variety of additional neighborhood, community, lifestyle and regional scale retailers (see Key Definitions above). This potential will continue to grow over the next five years despite a slight decrease in population; this can be attributed to a large proportion of stable white- collar employment and students in the City Centre District.

The primary trade area is the consumer market where the District study area has a significant competitive advantage because of access, design, lack of competition, and traffic and commute patterns. This competitive advantage equates to a potential domination of the capture of consumer expenditure by the retailers in the District. The secondary trade area is the consumer market, which provides some capture of consumer expenditure, but the City Centre District does not hold the position of supremacy in this market as it does in the primary trade area.

GPG defined a primary trade area by topography, vehicular access, strength of retail competition, and residential growth patterns instead of standardized ―drive-times‖. Consumers inside of the primary trade area will account for 70 to 80 percent of the total sales captured by retailers in the District. Due to the strong retail gravitational pull of the Novi, Troy and Dearborn shopping districts, the concentration of employment in the District and its environs, and the relatively limited extent of retail development directly surrounding the District, GPG finds that the primary trade area is centered on a point to

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the southeast of the District, while not extending north or west of the 14 Mile and Merriman Road corridors, nor south of Interstate 96. Residents and workers living south of the latter corridor will likely patronize the City Centre District on a business-by- business basis, and are in the total trade area demand demographic model.

Figure 7: The City Centre District‘s primary trade area is inside the green line, while the blue line delineates the total trade area.

The following borders approximately delineate the primary trade area:

The 14 Mile Road corridor to the north; The Woodward Avenue (M-1), 11 Mile Road and Interstate 75 corridors to the east, including residential areas that are east of Woodward Avenue and north of Interstate 696; The Oakman Boulevard and Interstate 96 corridors to the south; The Telegraph Road (US-24), Grand River Avenue (M-5), and Merriman Road corridors to the west. 10. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

Furthermore, to aid in evaluating the feasibility of supermarket development in the District, GPG defined a third, supermarket trade area, taking into account patterns of residential development and existing full-service supermarket competition within the primary trade area. This smaller trade area encompasses approximately 15 square miles, and is bounded by 12 Mile Road to the north, Greenfield Road to the east, 7 Mile Road to the south, and Lahser Road to the west.

Demographic Characteristics Using data from ESRI (Environmental Systems Research Institute), GPG obtained the population and demographic characteristics, present (2010) and projected for 2015, for the defined trade areas as well as national and statewide statistics.

Table 2: Demographic Comparisons

Primary Characteristics Michigan U.S. Trade Area

2010 Population 497,500 10,105,000 311,213,000

2015 Population 483,000 10,039,000 323,209,000

2010-2015 Projected Annual Growth Rate -0.61% -0.13% 0.76%

Persons Per Household 2010 2.52 2.53 2.59

2010 Median Household Income $54,500 $54,700 $54,400

2010 Per Capita Income $27,000 $26,300 $26,700

% Households w. incomes $75,000 or higher 33.8% 30.6% 32.9%

Median Age 37.6 37.8 37.0

% White-Collar Employed 64.8% 59.6% 61.6%

Table 2: This side-by-side table compares and contrasts primary trade area demographic statistics with those of Michigan and the United States.

The Southfield primary trade area‘s estimated 2010 population is 497,500 persons, which will shrink to 483,000 by 2015, a 2.9 percent projected decrease over the total five-year period (2010-2015). This rate of population loss is in contrast to the slight loss at the state level of 0.7 percent and increase in the national level of 3.9 percent.

The number of households in the primary trade area is estimated at 195,000 holding 2.55 persons-per-household, and is projected to decrease to 189,500 by 2015, a 2.8 percent total decrease over the five-year period of 2010-2015. Persons-per-household is projected to remain virtually unchanged, decreasing from 2.55 to 2.52 over the next five years, which is the cause of the relative balance between the percent loss of population and that of households. Approximately 57 percent of households are owner-occupied, a number that will decrease by one percent in 2015. A decline in owner-occupied and rental housing is causing the projected vacant housing units statistic to increase from 12.3 percent in 2010 to 14.6 percent in 2015.

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As shown in Table 1, the median household income ($54,500) in the trade area is slightly lower than the Michigan level, and almost even with the national level.The median age of 37.6 years mirrors the state (37.8) level, but is higher than the national (37.0) level. This median age statistic has increased by 2.9 years since the 2000 Census. The statistic is projected to continue to rise to 38.1 years by 2015.

The Southfield primary trade area employment base [Table 4] is concentrated in the Services (52.1 percent), and Retail Trade (15.4 percent) industries. White-collar employment (64.8 percent) is greater than both the state (59.6 percent) and national (61.6 percent) levels. Employment in the FIRE (Finance, Insurance and Real Estate) sector of the primary trade area (11.4 percent) is much higher than the Michigan level of 5.7 percent, reflecting the concentration of office employment in the City Centre and its environs.

Tapestry Lifestyles ESRI has developed Tapestry Lifestyles, which is an attempt to create 65 classifications, or lifestyle segments, that help determine purchasing patterns. These segments are broken down to the U.S. Census Block Group level throughout the United States and used by many national retailers to help determine future potential locations.

The trade area‘s most common tapestry lifestyle group is ―Family Foundations‖, representing 22.4 percent of all households. Family Foundations households are located in metropolitan areas in the Midwest and South. Older, single-family dwellings are the dominant household structure in these neighborhoods. The average family size in these communities is 3.3 persons. This larger family size is due to Family Foundations‘ households comprising a mix of generations and family types; grandparents, older and younger married couples, single parents and children are all represented. Racial diversity is not present, as 84 percent of the population is black.

The following Table 3 details the top Tapestry Lifestyles found in the primary trade area:

Table 3: Tapestry Lifestyles

Trade Area Lifestyle Short Description Statistics

Population Family is the cornerstone of life in these 121,700 neighborhoods that are a mix of married couples, single parents, grandparents, and young and adult Median HH Income children. The average family size is 3.3. The $47,000 median age is 39.4 years, slightly older than the 22.4% Southfield US median; 7 in 10 are aged 45 or older. Trade Area Market Share These small urban communities are located in Family Foundations large metropolitan areas, primarily in the South 0.8% National and Midwest. Because these residents tend to Market Share stay put, very little household growth has occurred since 2000. More than 75 percent own their homes; the median home value is $91,154. Most of their houses are single-family, built before 1970.

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Trade Area Lifestyle Short Description Statistics

Population Married couples, single parents, and 67,200 multigenerational families are the household types found in Metro City Edge neighborhoods. Median HH Income Grandparents are caregivers in 4 percent of $33,000 these households, twice the US rate. The 11.7% Southfield median age of this segment is 29.4 years because of the children, including adult children Trade Area Market Share who still live at home. The average family size of Metro City Edge 3.5 is slightly higher than the US average. 0.9% National Market Share Metro City Edge residents live in older suburban neighborhoods of large metropolitan cities, primarily in the Midwest and South. Sixty-eight percent live in single-family homes; 14 percent live in buildings with two to four units. The home ownership rate is 53 percent; the median home value is $70,892. Although home prices are relatively inexpensive, many families are young, unsettled, and still renting. Seventy percent of the housing units were built before 1970.

Population Cozy and Comfortable residents are middle-aged 45,700 married couples who are comfortably settled in their single-family homes in older neighborhoods. Median HH Income Their median age is 42.3 years, five years older $65,500 than the US median. The labor force participation 9.1% Southfield rate is 65.7 percent; employed residents work in Trade Area Market professional, managerial, and service occupations Share in a variety of industry sectors. Income for 80 Cozy & Comfortable percent of the households is earned from wages 2.8% National and salaries, and forty-six percent of households Market Share receive investment income. Their median net worth is $181,850.Single-family structures make up 88 percent of the household inventory. The median home value is $154,868. Sixty-two percent of the housing units were built before 1970. Home ownership is at 85 percent.

Population Eighty-three percent of the residents in Modest 27,489 Income Homes neighborhoods are black. Single- person and single parent household types are Median HH Income predominant; however, a higher-than-average $21,400 proportion of other family households is also

4.6% Southfield present. The median age of 36 years is a year Trade Area Market younger than the national median of 37. Many Share adult children still live at home. More than one- Modest Income fourth are aged 65 years or older and have retired. Homes 1.0% National Many are caregivers for their grandchildren, Market Share demonstrating strong family ties in these neighborhoods.

Table 3: The top Tapestry Lifestyle groups profiled above portray a range of family types and income levels.

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The larger average household size of Family Foundations residents, combined with a median household income slightly below the national average ($47,000), results in a greater discretion in consumer expenditures. These residents avoid eating out, while doing most of their shopping at discount retailers such as Wal-Mart, K-Mart and Target. Groceries are purchased at membership club discount stores such as Sam‘s Club and Costco. They spend their discretionary income on family activities in the community and on their homes, which are owned by more than three quarters of the households. The higher median age of Family Foundations residents is 39.4 years, and 70 percent are over the age of 45. With an increased presence of retirees, the group sees 33 percent of its members on Social Security or some other form of public assistance.

Tapestry Lifestyles Segmentation Church plays a large part in the lives of Family Foundations residents: not only do they attend, they are very active in fundraising and serving on boards and committees. Participation in civic activities is also high. Television is a staple in these households, as they own multiple sets and subscribe to cable at a rate matching the national average. Their high viewership comes in the form of sports, courtroom and news programs.

Figure 8: This pie chart shows the relative proportions of the top ten Tapestry Lifestyle segments found in the Southfield City Centre District‘s primary trade area.

Basketball is the predominant sport viewed, and is also played by many residents. Discretionary income is spent on attending local and professional games. Family Foundations residents can be reached through radio as well, preferring to listen to stations specializing in urban, gospel and jazz formats. Newspapers, entertainment and news magazines are read by these residents.

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Employment Base The employment picture found in the City Centre‘s primary trade area reflects a services foundation, with additional elevated levels in retail trade and finance, insurance and real estate (FIRE). The services sector accounts for 52.1 percent of employment found in the trade area.

As shown in Table 4 below, Southfield‘s role as a regional hub for professional services accounts for the great overrepresentation of this sector in the trade area. Consequent under-representation in the agriculture and mining, transportation, communication and utilities segments of the economy explains the higher levels of white-collar employment found in the trade area.

Table 4: Employment in the Primary Trade Area by Sector

Primary Trade Sector Michigan U.S. Area Agriculture and Mining 1.1% 1.3% 1.5% Construction 2.9% 3.7% 4.5% Manufacturing 6.0% 14.3% 9.7% Transportation 1.2% 2.3% 3.0% Communication 1.1% 0.5% 0.9% Utility 0.3% 0.5% 0.6% Wholesale Trade 6.0% 5.0% 5.4% Retail Trade 15.4% 20.2% 19.8% Finance, Insurance & Real Estate 11.4% 5.7% 7.0% Services 52.1% 40.7% 40.4% Government 2.3% 5.5% 6.7% Other 0.3% 0.4% 0.4%

Table 4: Finance, Insurance and Real Estate, along with Services sector employment in the Southfield primary trade area, is greater than state or national levels.

Daytime employment plays a large role in supporting local retail. The City Centre District, an area of less than one square mile in size, is estimated to have over 13,000 employees. Furthermore, 45,000 employees work within a five-minute drive time from the District. The mix of employees in the District is heavily weighted toward the professional, scientific and technical services and FIRE sectors, specifically in the areas of legal and insurance services. Together, the two sectors comprise slightly more than half of total District employment. The employment concentration in these sectors within the District is made more apparent when viewed relative to their concentration in the trade area as a whole, in which they comprise less than one quarter of total employment. The healthcare and administrative support categories each comprise six percent of total employment in the District, reflecting a stratification of white-collar professions. Fewer than 1,000 employees currently work in the retail trade, hospitality and restaurant industries, while public administration accounts for four percent of total employment in the District.

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Employment located within a five-minute drive time of the study area shows that professional services lose their dominance, falling from 54 to 38 percent of total employment. The void is filled by the healthcare and wholesale trade sectors, which double their combined market share, increasing from 11 to 22 percent of employment in this expanded five-minute drive time zone, centered on the Southfield Municipal Complex. Retail, hospitality and restaurant categories expand to 11 percent of total employment within this expanded zone, although these areas remain underrepresented relative to their share of employment in the trade area.

Table 5: Office Worker Employment by Industry Sector

City District City Office Southfield Centre 5-minute Centre Employ- City District drivetime Sector District ment Centre Office Office 5-minute by District Employ- Employ- drivetime Sector ment ment TOTAL EMPLOYMENT 13,277 44,754 7,720 21,567

Agriculture, Forestry, Fishing & Hunting 0 3 0.0% 0 0 Mining 0 0 0.0% 0 0 Utilities 0 2 5.0% 0 0 Construction 166 976 5.0% 8 49 Manufacturing 716 1,614 5.0% 36 81 Wholesale Trade 577 3,424 10.0% 58 342 Retail Trade 463 2,928 10.0% 46 293 Transportation & Warehousing 82 375 0.0% 0 0 Information 433 1,552 95.0% 411 1,474 Finance & Insurance 2,675 6,183 90.0% 2,408 5,565 Real Estate, Rental & Leasing 540 1,558 25.0% 135 390 Professional, Scientific & Technical 3,886 9,033 90.0% 3,497 8,130 Services Management of Companies & 3 8 90.0% 3 7 Enterprises Administrative, Support & Waste 850 1,880 30.0% 255 564 Management and Remediation Services Educational Services 119 1,884 5.0% 6 94 Health Care and Social Assistance 817 6,273 50.0% 409 3,137 Arts, Entertainment & Recreation 161 834 10.0% 16 83 Accommodation & Food Services 462 2,007 0.0% 0 0 Other Services (except Public 647 2,305 20.0% 129 461 Administration) Public Administration 585 1,764 50.0% 293 882 Unclassified Establishments 95 151 10.0% 10 15

Table 5: Office Workers make up nearly all of the top two employment sectors in the Southfield City Centre District.The percent of office-based jobs for each NAICS category estimated by GPG is based on the profile of professions within each sector.

Consumer expenditure from daytime employment compliments that captured in the evenings and on weekends by households in the trade area.Office Worker Spending Patterns, published by the International Council of Shopping Centers in 2004, provides insight into the impact of local employment. Weekly office worker expenditure, adjusted for 2011 dollars, is estimated at $157. The study found that 62 percent of office workers shop either during the workday, over the lunch hour (31 percent of those who shop) or after work (47 percent). Twenty percent of office workers reported shopping multiple times per day. On average, 23 sf of retail space and 7 sf of restaurant space can be

16. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

supported by each office worker; for the City Centre District‘s estimated 7,700 office workers, this translates into over 230,000 sf of restaurant and retail space that can be supported solely by this employment base.

Table 6: Southfield City Centre District Worker Expenditure

District District Non- Total District Office Office Worker Worker Weekly Annual District Worker Retail Category Expenditure Expenditure Expenditure Expenditure Capture Expenditure (5,557 (13,277 (7,720 Workers) Workers) Workers) Prepared Food & Beverage Limited & Full $25 $1,300 70.0% $7,025,000 $1,870,000 $8,895,000 Service Restaurants Drinking Places $16 $832 15.0% $960,000 $255,000 $1,215,000 Retail Goods General Merchandise, Apparel, $68 $3,536 10.0% $2,730,000 $730,000 $3,460,000 Home Furnishings, Electronics Grocery $29 $1,508 15.0% $1,745,000 $465,000 $2,210,000 Convenience Items $19 $988 33.0% $2,520,000 $670,000 $3,190,000

TOTAL $157 $8,164 $14,980,000 $3,990,000 $18,970,000

Table 6: Employees in the Southfield City Centre District expend nearly $19 million annually.

Weekly non-office worker expenditure, in 2011 dollars, is estimated at 37 percent of that of office workers. Non-office workers are estimated to have slightly less disposable income, to have multiple work locations including at home, and typically are on the road more during their workweek. Retail purchases (general merchandise, apparel, home furnishings, electronics, grocery, and convenience items) make up the majority of the office worker dollars, at $116 per week.

Restaurant expenditures (full service, limited service, and drinking places) account for the balance at $41 per week. Adjusted for 2011 dollars, the ICSC survey found that the average office worker spends $8.60 per lunch, eating outside of the office three out of five days each week. Forty-four percent of office workers purchased lunch outside of the office either four or five days of the week. Annualized, each office worker expends $8,164 before, during, and after work.

Much of this potential expenditure can be captured within the District through adjustments to parking policy, as well as ensuring that new retail and restaurants can be easily accessed by the majority of area office workers on foot. When consumption takes place during the limited time constraints of a lunch hour, those establishments located beyond the range of a five-minute walking time (about one quarter mile) will not be patronized. GPG noted that while the City Centre District is small, traversing the area on foot is often unpleasant due to its heavily auto-oriented design and scale.

The annual impact of the 13,300 workers in the City Centre District is:

Southfield Retail Analysis 17. Gibbs Planning Group, Inc. 4 January 2012

$10.1 million in Prepared Food and Beverage establishments, $ 3.5 million in Retail Goods sales, $2.2 million in Grocery purchases, $3.2 million in Convenience Items, totaling $19 million in captured consumer expenditure. Detailed results are found in Table 6.

Further research, including focus groups, is recommended to fully understand the existing policies and physical conditions that are limiting daytime worker shopping and dining.

Figure 9: The City Centre‘s primary trade area is shown above, inside of the green lines.

TRADE AREA CHARACTERISTICS

Location The City Centre‘s primary trade area transitions from older urban development in its southern reaches to postwar suburban development, interspersed with older traditional town centers in the northern portion. Retail competition is strongest in the shopping concentrations located along the Orchard Lake Road and Telegraph Road (US-24) corridors, as well as in the town centers of Birmingham, Royal Oak and Ferndale. The northern boundary is defined by14 Mile Road, which angles southeastward along the Amtrak railroad corridor to 11 Mile Road, bisecting the city of Royal Oak. The eastern boundary follows Interstate 75 (Chrysler Freeway) southward from 11 Mile Road into the city of Detroit, to McNichols Road.

The southern boundary roughly follows the Oakman Boulevard corridor, bisecting the enclave city of Highland Park, and Interstate 96 (Jeffries Freeway). The western trade area boundary is comprised of portions of the Telegraph Road, Grand River Avenue 18. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

(M-5) and Orchard Lake Road corridors. The portions of Detroit and Highland Park covered in the trade area are neighborhoods of single-family homes developed from the 1920s through the early-postwar era; this character extends north of 8 Mile Road (M-102) to early suburbs such as Ferndale, Oak Park, and Pleasant Ridge. In the northwestern portion of the trade area, cities such as Southfield and Farmington Hills contain contemporary suburban housing developments.

Figure 10: Lawrence Technological University (left), located in the Southfield City Centre District, hosts over 3,000 full-time undergraduate students, 85 percent of whom commute to campus. The 5000 Town Center residential tower (right) contains over 200 condominium units and is the tallest such structure in Michigan.

Access Regional linkage to the City Centre District is excellent, bounded by two major freeways. Interstate 696 forms the northern interstate bypass for the city of Detroit, providing a direct connection west to the Michigan state capitol city of Lansing, and eastward to connect to the international border crossing at Port Huron via Interstate 94.

The Lodge Freeway (M-10) enters Detroit to the southeast of the District, providing a direct route to that city‘s central business district (CBD) and the two international border crossings at the Detroit River. Furthermore, Telegraph Road (US-24) is a major north- south surface artery, which intersects the two freeways approximately one mile to the northwest of the District. Together, these routes fluidly access all portions of the trade area and southeast Michigan region via an extensive network of freeways and surface arteries.

High traffic volumes seen in the following Table 7 depict the impact of a large commuter population in the City Centre District and its environs. The six-figure traffic counts on the two freeways bordering the District reflect their importance within the regional network of highways. While this traffic is dispersed on the gridiron network of arterial surface roads, significantly higher counts are found on the arterial roads bounding the District. The traffic counts in the area are provided by the Southeast Michigan Council of Governments (SEMCOG) and the Michigan Department of Transportation, and measured in terms of Average Daily Traffic Volume (two-way).

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Table 7: Traffic Counts

Location Traffic Count, AADT Year

Interstate 696west of Lahser Road 170,000 2010

Interstate 696 at Evergreen Road 147,000 2010

Interstate 696 west of Greenfield Road 159,000 2009

M-10 between Lahser Road and Southfield Fwy. (M-39) 124,700 2009

Southfield Road, between 10 Mile and 11 Mile Roads 37,300 2011

Evergreen Road, between 10 Mile and 11 Mile Roads 26,600 2011

Lahser Road, between 11 Mile and 12 Mile Roads 24,600 2010

12 Mile Road, between Evergreen and Southfield Roads 22,500 2011

Lahser Road, between Civic Center Drive and M-10 21,600 2010

Evergreen Road, at 12 Mile Road 19,700 2011

12 Mile Road, between Lahser and Evergreen Roads 16,100 2010

10 Mile Road, between Telegraph and Lahser Roads 13,800 2010

11 Mile Road at Lahser Road 13,800 2010

10 Mile Road, between Greenfield and Southfield Roads 13,600 2010

10 Mile Road, between Lahser and Evergreen Roads 12,000 2010

Table 7: The traffic chart shows heavy traffic directed into and through the City Centre District on freeways, with circulation dispersed on surface arterial roads. Circulation is heavier on those arterial roads bounding the District, due to the heavy flows of commuter ingress and egress.

Other Shopping Areas As part of GPG‘s field evaluation, neighborhood, community, and regional shopping centers near the City Centre District area were visited to assess their retail appeal, strength of tenant mix, general maintenance, and accessibility. In addition to the onsite inspection of the most significant competing shopping concentrations to the District, GPG used information from the Directory of Major Malls, Inc., as well as individual developers and management companies.

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Table 8: Existing Neighborhood and Community Centers

Map Map Designation Retail Center Name Designation Retail Center Name (see Figures (see Figures 10 - 11) 10 - 11)

1 Gateway Shopping Center 18 Bloomfield Commons

2 Hunter‘s Square 19 Orchard-12 Shopping Center

3 Midtown Square 20 Merchants Marketplace

4 Tel-Twelve Mall 21 Mid-Eleven Center

5 Southfield Plaza 22 Evergreen Plaza

6 Lincoln Shopping Center 23 The Corners Shopping Center

7 West River 24 Northwood Shopping Center

8 Livonia Marketplace 25 Parkwoods Plaza

9 Universal Center 26 United Center

Redford-Oaks Shopping 10 Fairlane North 27 Center

11 Fairlane Green 28 Seven-Evergreen Plaza

Lincoln Park Shopping 12 29 Cornerstone Plaza Center Orchard Mall Shopping 13 30 Oak Park Shopping Center Center

14 The Shops at Old Orchard 31 Park Place Shopping Center

Royal Towne Shopping 15 The Boardwalk 32 Center

16 Bloomfield Plaza 33 College Park Commons

17 Village Knoll 34 Grandland Shopping Center

Table 8: There are thirty-four neighborhood and community shopping concentrations competing with the Southfield trade area. Community centers are numbered 1 through 12, and neighborhood centers are numbered 13 through 34 in the table.

Southfield Retail Analysis 21. Gibbs Planning Group, Inc. 4 January 2012

Table 9: Existing Regional and Lifestyle Centers

Map Map Designation Retail Center Name Designation Retail Center Name (see Figure 14) (see Figure 14) A Great Lakes Crossing Outlets K Westland Center B Lakeside Mall L Fairlane Town Center C The Somerset Collection M Briarwood Mall D Oakland Mall N Southland Center Mall E Macomb Mall P The Village of Rochester Hills F Twelve Oaks Mall Q The Mall at Partridge Creek G Northland Center R Green Oak Village Place Twelve Mile Crossing at H Eastland Center S Fountain Walk J Laurel Park Place

Table 9: The Detroit metropolitan area contains seventeen regional and lifestyle centers; Northland Center is located in the primary trade area, and Fairlane Town Center is located in the total trade area.

Figure 11: Community and Neighborhood Center Location Map

Figure 11: The City Centre District‘s area is surrounded to the west, north and east by community centers, indicated by green circles. Neighborhood centers, indicated by gold circles, appear in clusters throughout the trade area, and are the dominant form of retail in the city of Detroit to the south, as well as in the older suburban cities of Oak Park, Hazel Park and Ferndale. 22. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

Figure 12: Three additional community centers are located in the southern portion of the Southfield total trade area.

Figure 13: The City Centre District area is ringed with busy grocery stores, some anchoring neighborhood centers. This Kroger store at Middlebelt and 11 Mile Roads anchors the Mid-Eleven Plaza.

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Figure 14: Supermarket Trade Area Location Map

Figure 14: The Southfield City Centre District is ringed with full-service grocery stores; national and regional operators dominate in the northern portion of the trade area (delineated by the blue box), while locally owned stores take up the slack in the southern portion. The area immediately surrounding the City Centre District, a 1.5 -mile radius shown in red, is underserved in this category.

Strong retail competition to the City Centre District area lies to the northwest, in an area along the Orchard Lake Road shopping corridor, and to the south, where an agglomeration of regional and community centers in the Dearborn-Allen Park area exists along the Southfield Freeway (M-39) corridor. Orchard Lake Road consists of community and neighborhood-scale retail concentrations focused on the terminus of Northwestern Highway (M-10), a major arterial which transitions into the Lodge Freeway one mile northwest of the District. This traditionally suburban assemblage of shopping is anchored by the Gateway and Hunter‘s Square shopping centers at the major intersection of Orchard Lake and 14 Mile Roads with Northwestern Highway. The aforementioned community centers are complemented with several stand-alone big box retail outlets at this intersection, including K-Mart, Best Buy and Sam‘s Club. This shopping district extends one mile north along Orchard Lake Road, comprising several neighborhood shopping centers between 14 Mile and Maple Roads.

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Figure 15: Regional and Lifestyle Retail Location Map

Figure 15: The City Centre District is centrally located in a region served by thirteen regional malls and four lifestyle centers, indicated by gold circles. Cities and towns in the region are indicated by green circles. The majority of regional mall development has occurred in the suburbs to the north, northeast, and southwest of the District. One regional mall is within the primary trade area; an additional regional mall is within the total trade area. The region‘s four lifestyle centers opened between 2002 and 2007, and are sited far to the north and west of the total trade area boundary.

Retail growth has clustered in the southern portion of the District‘s total trade area along the Southfield Freeway (M-39), including the regional Fairlane Town Center and several community centers. One such center is Fairlane Green, comprising over 1.3 million sf of gross leasable area (GLA). Along with its many outparcels and several community centers which have developed nearby, Fairlane Green offers a dense collection of full and limited service restaurants in addition to the full spectrum of retail.

Another area of strong competition to the City Centre District exists in the traditionally urban contexts of several nearby downtown districts. The older Detroit suburbs of Birmingham, Ferndale and Royal Oak have each seen new retail development on and around their main streets occur within the last two decades. Between them, the three communities host a variety of retail and dining options, ranging from unique locally owned businesses to upscale national chains. Southfield Retail Analysis 25. Gibbs Planning Group, Inc. 4 January 2012

The area immediately surrounding the City Centre District furthermore contains several community centers, including Tel-Twelve Mall and, in the northeast corner of the total trade area, Midtown Square—the latter containing a residential component. Northland Center, situated approximately one mile to the southeast of the District, is a regional center with a storied history, yet poses little competition due to higher than average vacancy rates and the loss of three fifths of its anchor tenants.

Figure 16: The city of Birmingham, located five miles to the northeast of the Southfield City Centre District, is one of the region‘s leading walkable urban centers.

Northland Center Northland Center first opened two miles to the southeast of the City Centre District in 1954, and was the Detroit area‘s first regional shopping center; it was also the largest such center in the United States at the time of its completion. Originally an open-air center designed by Victor Gruen, it was designed as a collection of stores surrounding a J.L. Hudson department store; this original anchor tenant remains today, bearing the Macy‘s nameplate due to successive consolidations in the industry. Northland was enclosed in the 1970s, and at its peak supported five anchor tenants. Today, Target and Macy‘s anchor the 1.7 million sf center, which hosts 130 in-line retailers. Northland was purchased by Ashkenazy Acquisition Corporation in 2008, at which time the center‘s occupancy rate was 70 percent, with inline spaces filled mostly by smaller independent retailers.

Figure 17: Northland Center once hosted five anchor tenants. Today, Macy‘s and Target remain.

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Figure 18: Tel-Twelve Mall converted from an enclosed regional center to an outdoor community center in response to industry trends. The property contains a mix of big box retail and quick service dining.

Tel-Twelve Mall Tel-Twelve Mall, located one mile northwest of the City Centre District, opened in 1968 as a smaller enclosed regional center of 600,000 sf. Responding to changes in the marketplace, the old center was demolished and redeveloped by Ramco-Gershenson as a 523,000 sf outdoor community center in stages between 2000 and 2006. Anchors include Best Buy, Lowe‘s Home Improvement and Meijer, complemented by DSW Shoe Warehouse, PetSmart, Office Depot, Pier 1 Imports and Michael‘s Crafts. Two outparcels fronting Telegraph Road total 25,000 sf and are devoted to convenience retail and dining, with tenants including Cosi and Quizno‘s. Situated directly north of the massive interchange between Telegraph Road, Interstate 696 and the Lodge Freeway/Northwestern Highway (M-10), Tel-Twelve is surrounded by several separate convenience centers whose tenants include additional quick service restaurants.

Gateway & Hunter‘s Square The Gateway and Hunter‘s Square community centers are located at the terminus of Northwestern Highway, seven miles to the northwest of the City Centre District. These community centers anchor a shopping agglomeration stretching northward along Orchard Lake Road in the city of West Bloomfield. Anchors in the community centers include Gap, Whole Foods Market, Kohl‘s, Loehmann‘s, Bed Bath & Beyond, Marshall‘s and Old Navy. The neighborhood centers extending one mile north toward Maple Road host a unique variety of convenience and upscale retail, including Chico‘s, Stage Deli and Plum Market.

Figure 19: The Orchard Lake Road corridor contains a selection of retail, from budget to upscale, between several community and neighborhood centers, such as Hunter‘s Square (left) and Orchard Mall (right). Southfield Retail Analysis 27. Gibbs Planning Group, Inc. 4 January 2012

Figure 20: Upscale neighborhood centers located along Orchard Lake Road include the Boardwalk (left) and The Shops at Old Orchard (right), where Plum Market is one of several specialty grocery stores in the area.

Orchard Lake Road The Orchard Lake Road shopping corridor contains strong grocery competition, hosting Trader Joe‘s, Whole Foods, Plum Market, Hiller‘s and Sam‘s Club. Casual dining options along the corridor include California Pizza Kitchen, Max & Erma‘s, Olga‘s Kitchen and Outback Steakhouse. Specialty retail is concentrated in the corridor‘s northern anchor, the Orchard Mall neighborhood center. The 140,000 sf center contains a furrier, several salons, two bridal boutiques, a yoga studio and a massage parlor. Upscale regional grocery chain Hiller‘s anchors the plaza.

Midtown Square Located in the northeastern corner of the total trade area in the city of Troy, Midtown Square is an outdoor community center with over 600,000 sf of retail space, as well as 285 residential townhome units. The 77-acre site, a former Ford tractor plant which closed in 1994, was redeveloped by Grand/Sakwa Properties between 1998 and 2001; today the center includes Home Depot, Kohl‘s, Kroger, Old Navy and Target Greatland as anchors. Outparcels contain a variety of neighborhood retail, including Panera Bread, Game Stop and Five Guys Burgers. The townhome units are clustered at the northern portion of the site. Meijer and Whole Foods have locations adjacent to the Midtown Square center, which is located one mile west of downtown Birmingham. An Amtrak railroad line which runs from Pontiac to Chicago is located on the site‘s southwestern boundary.

Figure 21: The Midtown Square community center in Troy features big box and convenience retail with adjacent residential townhomes.

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Figure 22: Fairlane Town Center in Dearborn is a regional mall located in the southern portion of the Southfield total trade area. It features a 21-screen theater and a unique grouping of casual dining restaurants, in addition to three anchor stores.

Fairlane Town Center Fairlane Town Center is a 1.4 million sf regional mall located in the southern portion of the Southfield total trade area in the city of Dearborn. Approximately 13 miles from the City Centre District, it anchors a corridor of major retail developments located along the Southfield Freeway (M-39) stretching from Dearborn into the city of Allen Park. This area is directly accessible from the City Centre via the Lodge (M-10) and Southfield Freeways.

Developed by Taubman Centers and opened in 1976, Fairlane was built on a portion of the land once in possession of Henry Ford, whose mansion remains in situ directly to the west of the mall. Anchor tenants are JC Penney, Macy‘s and Sears, but Fairlane once hosted five anchors; a former Saks Off Fifth space was rebuilt into a unique ―lifestyle section‖ with an outdoor promenade containing several casual dining restaurants, including BRAVO! Cuccina Italiana and P.F. Chang‘s Bistro. A former Lord & Taylor anchor space remains unoccupied.

The regional center includes the largest H&M store in Michigan, and continues to host a variety of national fashion retailers inline. A 21-screen theater was built to replace the center‘s original multiplex in the early 2000s. Fairlane has a history of experimenting with unique features; the center originally included an elevated monorail connecting it to the 773-room Hyatt Regency hotel to its southwest. The monorail was decommissioned in the late-1980s to facilitate expansion of the mall‘s center court.

Figure 23: The Fairlane Green community center anchors a cluster of developments encompassing over one million sf of retail.

Southfield Retail Analysis 29. Gibbs Planning Group, Inc. 4 January 2012

Fairlane Green Fairlane Green is located further south along the Southfield Freeway (M-39) corridor in the city of Allen Park, in the southern portion of the Southfield total trade area. The center, developed by Ford Land Development, was built on a remediated brownfield site - a former Ford company landfill - and includes 43 acres of parkland with over three miles of trails. The first phase of the center opened in 2006, with 408,000 sf of space, and includes Target, Bed Bath & Beyond, Barnes & Noble, and Old Navy as anchors. Numerous outparcels include casual dining chains (Chili‘s, Lonestar Grill, On The Border) and neighborhood-scale retail (Rue 21, Great Clips). The second phase, opened in 2008, added an additional 600,000 sf to the center with Meijer, Best Buy and Home Depot. The site immediately to the south of Fairlane Green, a former veteran‘s hospital, was redeveloped as Independence Marketplace in 2004. This 345,000 sf community center is anchored by Lowe‘s, Staples and Guitar Center, with a wide variety of neighborhood-scale retail.

Figure 24: Three traditional downtown districts are located within approximately five miles of the Southfield City Centre District. The cities of Birmingham (1), Royal Oak (2) and Ferndale (3) offer different mixes of retail, dining and entertainment, competing for consumers‘ dollars.

30. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

In addition to all of the shapes and sizes of shopping centers that trade area consumers have to choose from, three neighborhood shopping districts exist in Detroit‘s older suburban communities, in close proximity to the Southfield City Centre. Retail and dining agglomerations in the cities of Birmingham, Royal Oak and Ferndale span a range of formats, from unique, locally owned retail and restaurants with authentic appeal to trendy, upscale bistros and national retailers.

Figure 25: The City of Birmingham offers a wide range of restaurants, entertainment and shopping in a historical urban setting. Although located only five miles north of the City Centre District, Birmingham is difficult to access and parking is challenging and not a direct competitor with the District‘s new retail development.

Birmingham Straddling the northern border of the Southfield total trade area, downtown Birmingham has attracted a mix of upscale specialty and traditional retail and dining, centered on the intersection of Old Woodward Avenue and Maple Road. Retail names include Anthropologie, Ethan Allen Design Center and Jos. A. Bank Clothiers, among many other independent galleries, antique and jewelry stores. Dining options range from casual café and quick service restaurants to upscale bistro and full service establishments. The city enjoys expanded streetside dining during warmer months when business owners may rent street parking to provide outdoor seating. Downtown Birmingham additionally contains 20 movie screens between two theaters, one of which was constructed in 1927, and later restored and expanded to eight screens in the 1990s.

Figure 26: Downtown Royal Oak (above left) has a mixture of independent and national retail, dining and entertainment. The Ferndale downtown district (above right) is an organic mix of galleries, specialty retail and nightspots with a trendy, authentic flavor.

Southfield Retail Analysis 31. Gibbs Planning Group, Inc. 4 January 2012

Royal Oak & Ferndale Situated northeast of the intersection of Interstate 696 and Woodward Avenue, downtown Royal Oak hosts a trendy mix of local, regional and national retailers. American Apparel and Barnes & Noble have locations in the downtown district, centered on Main Street, 4th Street, and Washington Avenue. Eight coffee houses operate in the area, with Starbucks and Caribou Coffee competing against local merchants, many of whom offer live entertainment. Casual upscale bistros and wine bars coexist with a full range of quick service and casual dining restaurants, including bd‘s Mongolian Grill, Noodles & Co., and Qdoba Mexican Grill. A 10-screen first-run theater and 16-lane bowling alley opened in 2011, complementing a long-standing art theater on Main Street. An additional former theater building now plays host to off-Broadway productions and live music. The retail, dining and entertainment shares space with more than 10 independent bars, clubs and cocktail lounges.

Ferndale‘s downtown district is centered on Woodward Avenue and 9 Mile Road. Although the retail here is not composed of national tenants with stratospheric sales per square foot numbers, the authentic antique and book stores, coffee shops, and custom retail make it a destination for neighborhood, community, and tourism retail. Downtown businesses include art galleries, a comic book store, retro-themed antique, clothing and candy stores, health foods, a record store, and several independent bookstores. Dining includes many small, ethnically-themed restaurants, and several full-service bar and grilles. Unique cocktail lounges are in abundance in lieu of traditional bars.

Figure 27: Southfield has an opportunity to implement a moderately focused mixed-use town center that could have a community or regional draw. Shown: The Glen Town Center, Glenview, Illinois.

SUMMARY OF FINDINGS The Southfield City Centre District has a unique opportunity to create a state of the art walkable mixed-use town center that could significantly expand its retail and restaurant goods and services. This study finds that up to 645,000 sf of additional retail space is presently supportable in the City Centre District, potentially generating $252 million of consumer expenditure that is presently occurring elsewhere, by 2016. This center could include a wide range of leading retailers, restaurants and department stores, which if

32. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

carefully planned and implemented could become one of the region‘s primary destinations to dine and shop, as well as live and work.

The demographics of the primary trade area shows a population base of 497,500, which will decrease slightly to 483,000 by 2015, an annual rate of decrease of six-tenths of one percent. The persons-per-household is 2.52, and median age is 37.6 years old; 37.5 percent hold some level of a college degree.

Many residents (64.8 percent) are white-collar employed in Health Care (21.2 percent) and Professional and Educational Services (12.1 percent) positions. There are over 13,000 employees in the City Centre District, 65 percent of whom are concentrated in the Professional Services and Finance, Insurance and Real Estate (FIRE) sectors. These daytime consumers expend nearly $19 million annually, with the restaurant sector leading at almost $9 million per year.

Tapestry lifestyles in the market reflect a majority base of ―Family Foundations‖ households. As the group name implies, family is central to Family Foundations neighborhoods. Their households are multigenerational, and have a larger-than-average median size of 3.3. Married-couple families, single-parent families and retirees are mixed throughout these households. The comparatively high median age of 39.4 years reflects the fact that 70 percent are over the age of 45. Approximately 84 percent of these residents are Black. Home ownership and church attendance are at high levels within this community, suggesting these residents‘ close ties to their neighborhoods.

Figure 28: The City Centre District site can support a wide range of leading local, regional and national retailers and restaurants including: apparel, grocery, home furnishings, sporting goods and department stores. The location has a unique opportunity to create a walkable mixed-use town center that can encompass the adjacent civic, employment, residential and university uses.

Supportable 2011 Retail and Potential Tenants

263,500 sf Department & Discount Department Stores: Discount Department Stores make up approximately 50 percent of the new growth in this category in the United States. Discount Department Stores differ from Department Stores by having a single bank of cash registers near the entrance/exit of the store, instead of cash registers on the sales floor in each department. Potential retailers include Target, Kohl‘s and K-Mart in the discount category, and JC Penney, Sears, and Lord & Taylor in the traditional category. Southfield Retail Analysis 33. Gibbs Planning Group, Inc. 4 January 2012

99,000 sf of Food & Restaurant: The potential expenditure capture in this category is split between the Full Service and Limited Service Restaurant groups. Full service restaurants differ from limited service restaurants by the consumption of alcohol on premise. Both types of establishments would thrive with the large number of office workers in the area, and should ideally be located within easy walking distance of office concentrations. There is an oversupply of drinking-only establishments in the trade area.

72,500 sf of Food & Beverage Stores: Most of this supportable square footage is concentrated in the Grocery Store class. A traditional supermarket would work well, in a format amenable to those who live and/or work in the City Centre District, as well as those who arrive by car. Possible retailers include Busch‘s, Hiller‘s, Kroger, Trader Joe‘s, or Whole Foods Market.

68,000 sf of Apparel, Shoes & Accessories: A broad mix of apparel, favoring women‘s apparel. Possible apparel retail includes Calypso, Rainbow Apparel, Anne Fountaine, Betsey Johnson, Urban Outfitters, Buffalo Exchange, American Eagle Outfitters, Charming Charlie‘s, Forever 21, Great Outdoor Clothing, Gymboree, Jarrod‘s, Kay Jewelers, Men‘s Wearhouse, The Gap and The Limited. Potential shoe stores are Bakers Footwear, Boot Barn, Brown‘s Shoe Fit Company, Famous Footwear, Foot Locker, Naturalizer, Red Wing Shoes, Sports 4 U, Surefoot, or World Class Footwear.

38,000 sf of Home Furnishings: There is demand to support a full size furniture store. Potential retailers include Art Van, Arizona Leather Company, Bellini Furniture, Direct Buy, Home Consignment Center, Jennifer Convertibles, Ortho Mattress, Room & Board, or Urban Home.

27,000 sf of Electronics, Appliances, & Computer retail: The majority of the supportable retail square footage in this category is found in the General Electronics retail sector. Potential retailers include ABC Warehouse, Appliance Recycling Centers of America, Howard‘s Appliances, Aaron‘s, Sears, Al & Ed‘s Autosound, Car Toys, Computer Renaissance, Fry‘s Electronics, Micro Electronics, Radio Shack, Storables, or The Container Store.

23,000 sf of Sporting Goods, Hobby, Books, & Music Stores: This retail group is spearheaded by the Sporting Goods, Hobby & Musical Instruments subcategory; Arts & Crafts make up the remainder of the retail potential. Prospective retailers include: Dick‘s Sporting Goods, Dunham‘s, MC Sports, Michael‘s, Hobby People, Beverly Fabrics, or Utrecht Art Supplies.

19,000 sf of Miscellaneous Retail: The Florists subcategory spearheads this group. In addition,miscellaneous retail includes antique stores, video stores, pet supplies, and tobacco supplies. Possible retailers are Best Friend Pet Care, Centinela Pet Supplies, Smoker Friendly International, PetSmart, The Cigarette Store, Tinder Box International, Wild Birds Unlimited, Hollywood Entertainment, or a kiosk video vendor.

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16,000 sf of Office Supply, Stationery/Card & Gift Stores: Feasible tenants are Hallmark Gold Crown, FedEx Office, Office Depot, Office Max, Staples, or UPS Stores.

14,000 sf of Health Care & Personal Services: Drug Stores make up this class of retail potential. Possible retailers include CVS, Walgreen‘s and Rite Aid. Pharmacies now require drive thru windows, so it is likely that this space will need new development.

5,000 sf of Hardware, Lawn & Garden Store: The potential demand in this retail group focuses on a Lawn & Garden Store. Possible retailers include: ACE Hardware, English Gardens, or True Value Hardware.

A detailed examination of the supportable sf of retail uses is found in the Appendix: Exhibit A.

Figure 29: The Healthcare sector is a large source of employment in the Southfield primary trade area. Beaumont Hospital is located in the northeast corner of the Southfield total trade area.

Rationale Please find below the rationale for the findings of this study:

. District infrastructure: Southfield has transformed itself in the last half-century from a rural township to a fully-developed major suburb, with few remaining greenfield sites. The City Centre District has become an office space- concentrated area with an impressive skyline, but surface parking dominates the interior of the triangular site. Space and services exist within the District to develop new retail that is accessible on foot and by car through reconfiguration of existing parking and street frontage. Adding a further mix of uses and transportation modes to the District will additionally add vibrancy and a sense of place to the area for employees, visitors and residents. Although there is limited retail now, the access, parking, daytime employment, and consumer base exists to support new, conversion, or infill retail development.

Southfield Retail Analysis 35. Gibbs Planning Group, Inc. 4 January 2012

. Strong daytime employment base: The City Centre District has over 13,000 employees, and an additional 32,000 within a five-minute drive. These daytime consumers form a stable consumer foundation with $19 million in annual expenditure. Southfield‘s strength as a center of professional, health care and education services provides an established base of white-collar employment. The District area alone has an estimated 7,700 office workers, 62 percent of whom are shown to go shopping during the workday. Studies show that the average office worker eats lunch at a restaurant three out of five days each week, spending $8.60 per meal; on average, each office worker can support a combined 30 sf of retail and restaurant space. Furthermore, Lawrence Technological University has an enrollment of over 4,000 students, 85 percent of whom live off-campus, providing further support to a stable day and evening population in the District.

. Tourist and visitor spending potential: The City Centre District supports over 1,500 hotel rooms within a three-mile radius, 40,000 sf of conference and meeting space, and is located within a twenty-minute drive of the Detroit CBD, as well as major national attractions such as the Henry Ford in Dearborn. Lodging occupancy rates in the Southfield total trade area have rebounded from the low point of 48 percent in 2009, with overall demand increasing by 13 percent during 2010. Year-to-date occupancy rates for 2011 stood at over 60 percent at the end of September, gains which were realized due to increases in both business and leisure travel. Centrally located in the region, the District can gain additional capture of trade area visitors with an increased retail component.

In the most recent profile of Michigan tourists, 38 percent of visitors to the Southfield total trade area cited shopping and dining as their primary activity, with the average traveling party spending $600 on shopping over the course of their trip.

Overall, sixty percent of domestic tourists, and 89 percent of international tourists, shop while they are on vacation. Domestic tourists spend one third of their total trip expenditures on shopping and dining, with an average of $333 spent during each trip. These tourists cite shopping as a primary or secondary reason for traveling. Tourists‘ shopping dollars are currently being leaked out of the City Centre District and spent elsewhere in the region.

. Single site critical mass development: The City Centre District‘s potential availability of a large single site development, assembled by private developers through market transactions or with help from the City‘s eminent domain police powers, could attract new retailers to the market.

. Location at a critical regional node: The District is located at the nexus of three major highways critical to regional transportation. Convenience to surrounding neighborhoods, cities and towns will appeal to numerous modern retailers.

-- END OF ANALYSIS --

36. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

Retailers such Retailersas such ABC Warehouse, Best Buy, Fry's Electronics, H.H. Gregg, GamePlay, GamePlay, H.H. Gregg, Electronics, Warehouse,ABC Fry's Buy, Best GameStop, RadioShack Plum Spices, Market, WholePenzey's Foods Market Wines,Elie's Wagon Red Wine Shoppe Walgreen's, Pharmacy, CVS Office, FedEx Centers, Nutrition General Binson's Ashley Outfitters, AmericanLane, Apricot Eagle Fontaine, Anne Aeropostale, Buckle,Carter's Wear, Children's Avenue, Stewart, Charming Catherine's, Dress Express, delia's, Barn, 8, Crazy Claire's, Place, Children's Charlie's, The JosBank,Bryant, A The Lane 21, Topic,Forever Hot Gap, Jimmy Jazz, Limited, Loft, Wearhouse, Men's Torrid, Co, YorkVictoria's & Versona, New Secret Baker's,Aerosoles, Champs Famous Encore, Line, Sports, Finish Footwear, RackPogo's, ShoeSource, Payless Mr. Alan's, Locker,Foot Journey's, Carnival Shoe Dept., Shoe Shoes, Forever Luggage, Charming Edwards Charlie's, Company, Leather Arizona Diamonds, Zale's, Mastercraft, MJ Jewelers, Helzberg Jarrod's,21, Kay Diamonds Dick's MC Center, Guitar Goods, Dunham's, Sporting Mountain, Gander Sports Target, Meijer, Kohl's, Marshall's/TJ Maxx Nordstrom, Sears Macy's, Parisian, JC Penney, Works, Ford Body GNC, & Henry Bath Below, Five Massage Envy, Aveda, Sephora, Lenscrafters, Salons, Regis Optimeyes, PetSMART, Lids, Things Hut, Smokers Remembered, Sunglass Wild Only, Unlimited Birds Pizza California Bravo, Bonefish, Andiamo, Brewhouse, BJ's and Restaurant SteakMax & House, Longhorn Crust Pizza, Chili's, Diablo's, Cantina Kitchen, Robin, Red Cantina, Sagebrush Chang's, PF Cantina, Erma's, Monterrey Sacco's Tony Tuesday, Rojo,Ruby Kalamata Cosi, Greek, Olga's Dave's, Kitchen, Co., & Bagger Noodles Zoup! Shop, Sandwich Potbelly Kalamata Cosi, Greek, Olga's Dave's, Kitchen Co., & Bagger Noodles Zoup! Shop, Sandwich Potbelly Buffalo Wild World Louie, Bar Wings, Brewery, of Beers City Granite Art Van, Ashley Furniture, I.O. Metro, Parmida I.O. Metro, Furniture, Home Ashley Van, Art One Imports, Pier Barn, Kirkland's, Select Pottery IKEA, Allen, Ethan Comfort Bordine's Gardens, Gro GardenSupply, More English Mkt Mkt, Holiday TraderBusch's, Kroger, Joe's, Hiller's, Hollywood HalfBooks Price FYE, Books-A-Million, Noble, Barnes & HallmarkOffice Crown, Office Gold Depot, Staples Max, Florist Thrifty $238,645 $238,645 ($911,115) $1,645,530 $1,645,530 $1,426,522 $2,621,642 $6,435,686 $1,708,656 $1,087,916 $3,777,230 $3,777,230 $8,398,298 $7,786,768 $2,270,839 $72,580,851 $72,580,851 $41,991,402 $79,738,654 $12,331,334 $12,331,334 $26,895,299 $34,297,923 $33,482,800 $21,242,341 $31,903,939 $18,354,816 $14,687,387 $11,836,044 $32,319,492 ($1,217,216) ($2,316,600) Sales $112,569,372 $112,569,372 $106,777,740 $367,776,302 Estimated Total Estimated Total $458 $453 $693 $686 $355 $397 $572 $183 $132 $158 $178 $199 $713 $179 $423 $301 $471 $430 $555 $489 $430 $563 $439 $240 $178 $428 $297 $451 2016 $415 Estimated Sales per per Sales S/F 648 $368 3,596 3,146 3,785 9,376 4,818 2,742 21,116 21,116 19,841 40,957 57,088 18,129 61,758 68,500 49,456 56,704 76,402 12,769 34,342 39,852 71,592 (2,128) (3,250) (2,076) (S/F) Supportable Supportable Retail Space Retail Space $220,968 $220,968 ($876,072) $1,582,240 $1,582,240 $1,371,656 $2,520,810 $6,188,160 $1,642,938 $1,046,073 $3,631,952 $3,631,952 $8,075,287 $7,487,277 $2,183,499 $69,789,280 $69,789,280 $40,376,348 396,530 317,924 $76,671,783 448,373 $11,857,052 $11,857,052 $25,860,864 $32,978,772 $32,195,000 $20,425,328 $30,676,864 $17,648,862 $13,599,432 $10,959,300 $29,925,456 ($1,170,400) ($2,145,000) Sales $108,239,781 $108,239,781 714,454 $102,670,904 537,544 $352,480,081 1,571,495 Southfield, Michigan Study Area Study Southfield, Michigan Estimated Total Estimated Total EXHIBIT A: Supportable Retail Table EXHIBIT A: $440 $436 $666 $660 $341 $382 $550 $422 $176 $127 $152 $171 $191 $660 $172 $407 $290 $453 $413 $534 $470 $413 $541 $231 $171 $396 $275 $418 2011 $397 Estimated Sales per per Sales S/F 648 $341 3,596 3,146 3,785 9,376 4,818 2,742 21,116 21,116 19,841 40,957 57,088 18,129 61,758 68,500 49,456 56,704 76,402 12,769 34,342 39,852 71,592 (2,128) (2,076) (3,250) 396,530 396,530 317,924 714,454 448,373 537,544 1,571,495 (S/F) Supportable Supportable Retail Space Retail Space Retail Category Furniture Furniture Stores Stores Furnishings Home Stores Total Furnishings Home Total Stores Electronics Appliance & Total &Supplies Lawn &Garden Equipment Grocery Stores Stores Food Specialty Beer, Wine, Liquorand Stores Stores Beverage & Total Food Total Stores & Personal Care Health Stores Clothing Stores Shoe Luggage, Jewelry, Leather and Goods Stores Total Stores Clothing Clothing Accessories and Instruments Stores Sporting Goods/Hobby/Musical Stores Music and Book, Periodical, Total Music, Goods, Sporting Hobby, Books Stores General Merchandise Department Stores Total General Stores Merchandise Office GiftStationary/Cards, Supplies, Stores Florists Store Retailers Other Miscellaneous Total Miscellaneous RetailersStore Restaurants Full-Service Eating Places Limited-Service Services Food Special Beverages Drinking Places-Alcoholic & Drinking Places Services Total Food IdentifiedGrand Total Retail Expenditure

Southfield Retail Analysis 37. Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT B: Study Area Regional & Community Shopping Centers

Map # Retail Location Name and Address Center Type

1 Gateway Shopping Center Community NW Corner of 14 Mile & Orchard Lake Rds. Center West Bloomfield, MI 48322 273,371 sf Anchors: DSW Shoe Warehouse, Dunham's Sports, Kohl's, PetSmart, Whole Foods 2 Hunter's Square Community SW Corner 14 Mile & Orchard Lake Rds. Center Farmington Hills, MI 48334 355,740 sf Anchor: Bed Bath & Beyond, Buy Buy Baby, Gap Kids, Loehmann's, Marshall's, T.J. Maxx 3 Midtown Square Community SW Corner of Coolidge Hwy. & Maple Rd. Center Troy, MI 48084 580,000 sf Anchors: Home Depot, Kohl's, Kroger, Old Navy, Target Greatland 4 Tel-Tewlve Mall Community SE Corner Telegraph & 12 Mile Rd. Center Southfield, MI 48034 523,411 sf Anchors: Best Buy, Lowe's, Meijer, Michael's, Office Depot, PetSmart 5 Southfield Plaza Community E. Side of Southfield Rd., between 12 Mile & 13 Mile Rds. Center Southfield, MI 48076 165,999 sf Anchors: Big Lots!, Burlington Coat Factory, Marshall's

6 Lincoln Shopping Center Community E. Side of Greenfield Rd., between 10 Mile & 11 Mile Rds. Center Oak Park, MI 48237 300,000 sf Anchor: K-Mart

7 West River Centre Community S. Side of 9 Mile Rd., between Middlebelt & Orchard Lk. Rds. Center Farmington Hills, MI 48336 291,333 sf Anchors: Dunham's Sports, Kohl's, Office Max, Target, West River Theatre 8 Livonia Marketplace Community NW Corner Middlebelt & 7 Mile Rds. Center Livonia, MI 48152 310,136 sf Anchors: Kohl's (under construction), Sears, Walmart

9 Universal Center Community SE Corner Dequindre & 12 Mile Rds. Center Warren MI, 48092 618,000 sf Anchors: Burlington Coat Factory, Cinemark Theatres, Kroger, Target

38. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT B: Study Area Regional & Community Shopping Centers

Map # Retail Location Name and Address Center Type

10 Fairlane North Community NE Corner Southfield Fwy. & Ford Rd. Center Dearborn, MI 48126 600,000 sf Anchors: Home Depot, Sports Authority, Super Walmart 11 Fairlane Green/Independence Marketplace Community SE Corner Southfield Fwy. & Oakwood Blvd. Center Allen Park, MI 48101 1,350,000 sf Anchors: Barnes & Noble, Bed Bath & Beyond, Best Buy, Home Depot, Lowe's, Meijer, Old Navy, Target 12 Lincoln Park Shopping Center Community NW Corner of Southfield Rd. & Dix Hwy. Center Lincoln Park, MI 48146 295,937 sf Anchor: Sears A Great Lakes Crossing Regional SE Corner Interstate 75 & Baldwin Rd. Center Lake Angelus, MI 48326 1,353,000 sf Anchors: Bass Pro Outdoor World, Burlington Coat Factory, Bed Bath & Beyond, Saks Off Fifth B Lakeside Mall Regional SE Corner Hall & Schoenherr Rds. Center Sterling Heights, MI 48313 1,530,000 sf Anchors: JC Penney, Lord & Taylor, Macy's, Sears C The Somerset Collection Regional Corner of Big Beaver Rd. & Coolidge Hwy. Center Troy, MI 48084 1,440,000 sf Anchors: Macy's, Neiman-Marcus, Nordstrom, Saks Fifth Avenue D Oakland Mall Regional NE Corner Interstate 75 & 14 Mile Rd. Center Troy, MI 48083 1,500,000 sf Anchors: JC Penney, Macy's, Sears E Macomb Mall Regional Gratiot Ave., S. of 13 Mile Rd. Center Roseville, MI 48066 933,000 sf Anchors: Old Navy, Kohl's, Sears F Twelve Oaks Mall Regional NE Corner Interstate 96 & Novi Rd. Center Novi, MI 48377 1,454,000 sf Anchors: JC Penney, Lord & Taylor, Macy's, Nordstrom, Sears G Northland Center Regional NW Corner Lodge Fwy. & Greenfield Rd. Center Southfield, MI 48075 1,400,000 sf Anchors: Macy's, Target

Southfield Retail Analysis 39. Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT B: Study Area Regional & Community Shopping Centers

Map # Retail Location Name and Address Center Type

H Eastland Center Regional SE Corner 8 Mile & Kelly Rds. Center Harper Woods, MI 48225 1,415,557 sf Anchors: Macy's, Sears, Target J Laurel Park Place Regional NW Corner Newburgh & 6 Mile Rds. Center Livonia, MI 48152 506,685 sf Anchors: Parisian, Von Maur K Westland Center Regional NW Corner Warren & Wayne Rds. Center Westland, MI 48185 1,056,696 sf Anchors: JC Penney, Kohl's, Macy's, Sears L Fairlane Town Center Regional NW Corner Southfield Fwy. & Michigan Ave. Center Dearborn, MI 48126 1,465,000 sf Anchors:JC Penney, Macy's, Sears M Briarwood Mall Regional NW Corner Interstate 94 & State St. Center Ann Arbor, MI 48108 983,000 sf Anchors: JC Penney, Macy's, Sears, Von Maur N Southland Center Mall Regional NE Corner of Eureka & Pardee Rds. Center Taylor, MI 48180 920,000 sf Anchors: Best Buy, JC Penney, Macy's P The Village of Rochester Hills Outdoor NE Corner of Walton Blvd. & Adams Rd. Lifestyle Rochester Hills, MI 48309 Center Anchors: Parisian, Whole Foods 375,000 sf Q The Mall at Partridge Creek Outdoor SE Corner Hall & Garfield Rds. Lifestyle Clinton Township, MI 48038 Center Anchors: Nordstrom, Parisian 640,000 sf R Green Oak Village Place Outdoor NE Corner of US-23 & Lee Rds. Lifestyle Brighton Township, MI 48116 Center Anchors: Barnes & Noble, DSW Shoe Warehouse 550,000 sf JC Penney, Old Navy S Twelve Mile Crossing at Fountain Walk Outdoor NW Corner of Interstate 96 & Novi Rd. Lifestyle Novi, MI 48377 Center Anchors: Dick's Sporting Goods, Emagine Theatres, 737,000 sf The Great Indoors

40. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT B (Cont’d) : Community Shopping Center Location Map

Southfield Retail Analysis 41. Gibbs Planning Group, Inc. 4 January 2012

District Cities and Towns Regional Centers Regional Towns and Cities District EXHIBIT B (Cont’d): Regional Shopping Center Location Map Location Center Shopping Regional (Cont’d): B EXHIBIT Map Key: Southfield City Centre Centre City Southfield Key: Map

42. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT C: Business-Facts:WorkPlace& Employment Summary SIC Codes

Southfield, MI Primary Trade Area Prepared by Gibbs Planning

Total Businesses: 20,967 Total Employees: 198,618 Total Residential Population: 497,501 Employee/Residential Population Ratio: 0.40 Group BUSINESSES EMPLOYEES Number Percent Number Percent

Agriculture & Mining 240 1.1% 2,141 1.1% Construction 1,115 5.3% 5,696 2.9% Manufacturing 683 3.3% 11,854 6.0% Transportation 400 1.9% 2,330 1.2% Communication 253 1.2% 2,192 1.1% Utility 35 0.2% 628 0.3% Wholesale Trade 940 4.5% 11,875 6.0% Retail Trade Summary 3,945 18.8% 30,664 15.4% Home Improvement 178 0.8% 1,789 0.9% General Merchandise Stores 112 0.5% 1,577 0.8% Food Stores 357 1.7% 2,999 1.5% Auto Dealers, Gas Stations, Auto Aftermarket 383 1.8% 3,372 1.7% Apparel & Accessory Stores 431 2.1% 1,409 0.7% Furniture & Home Furnishings 359 1.7% 2,623 1.3% Eating & Drinking Places 1,010 4.8% 12,056 6.1% Miscellaneous Retail 1,115 5.3% 4,839 2.4%

Finance, Insurance, Real Estate Summary 2,567 12.2% 22,654 11.4% Banks, Savings & Lending Institutions 536 2.6% 4,918 2.5% Securities Brokers 401 1.9% 2,488 1.3% Insurance Carriers & Agents 539 2.6% 8,007 4.0% Real Estate, Holding, Other Investment Offices 1,091 5.2% 7,241 3.6%

Services Summary 9,961 47.5% 103,507 52.1% Hotels & Lodging 52 0.2% 936 0.5% Automotive Services 581 2.8% 2,494 1.3% Motion Pictures & Amusements 393 1.9% 3,556 1.8% Health Services 1,423 6.8% 35,469 17.9% Legal Services 841 4.0% 6,593 3.3% Education Institutions & Libraries 465 2.2% 11,827 6.0% Other Services 6,206 29.6% 42,632 21.5% Government 254 1.2% 4,481 2.3% Other 575 2.7% 596 0.3%

Totals 20,968 100.0% 198,618 100.0%

Southfield Retail Analysis 43. Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT C (Cont‘d): Business-Facts: WorkPlace& Employment Summary NAICS Codes

Southfield, MI Primary Trade Area Prepared by Gibbs Planning Group

BUSINESSES EMPLOYEES

Number Percent Number Percent Agriculture, Forestry, Fishing and Hunting 25 0.1% 69 0.0% Mining 6 0.0% 4 0.0% Utilities 11 0.1% 559 0.3% Construction 1,313 6.3% 6,820 3.4% Manufacturing 699 3.3% 11,628 5.9% Wholesale Trade 902 4.3% 11,629 5.9% Retail Trade 2,820 13.5% 18,028 9.1% Motor Vehicle and Parts Dealers 210 1.0% 2,741 1.4% Furniture and Home Furnishings Stores 109 0.5% 897 0.5% Electronics and Appliance Stores 215 1.0% 1,607 0.8% Building Material and Garden Equipment and Supplies 177 0.8% 1,787 0.9% Food and Beverage Stores 392 1.9% 2,923 1.5% Health and Personal Care Stores 261 1.2% 1,748 0.9% Gasoline Stations 173 0.8% 631 0.3% Clothing and Clothing Accessories Stores 547 2.6% 1,677 0.8% Sporting Goods, Hobby, Book, and Music Stores 158 0.8% 799 0.4% General Merchandise Stores 112 0.5% 1,577 0.8% Miscellaneous Store Retailers 417 2.0% 1,430 0.7% Nonstore Retailers 49 0.2% 211 0.1% Transportation and Warehousing 341 1.6% 1,786 0.9% Information 542 2.6% 5,240 2.6% Finance and Insurance 1507 7.2% 16,165 8.1% Central Bank; Credit Intermediation and Related Activities 542 2.6% 4,920 2.5% Securities, Commodity Contracts, and Other Financial Investments and Related Activities 415 2.0% 2,991 1.5% Insurance Carriers and Related Activities; Funds, Trusts, and 551 2.6% 8,253 4.2% Real Other Estate Financial and Rental Vehicles and Leasing 1,105 5.3% 6,597 3.3% Professional, Scientific, and Technical Services 2,789 13.3% 24,702 12.4% Legal Services 906 4.3% 7,033 3.5% Management of Companies and Enterprises 10 0.0% 21 0.0% Administrative and Support and Waste Management and Remediation Services 1,057 5.0% 7,670 3.9% Educational Services 522 2.5% 11,753 5.9% Health Care and Social Assistance 2,137 10.2% 42,110 21.2% Arts, Entertainment, and Recreation 270 1.3% 2,892 1.5% Accommodation and Food Services 1,093 5.2% 13,249 6.7% Accommodation 52 0.2% 936 0.5% Food Services and Drinking Places 1040 5.0% 12,314 6.2% Other Services (except Public Administration) 2,961 14.1% 12,331 6.2% Automotive Repair and Maintenance 449 2.1% 1,788 0.9% Public Administration 261 1.2% 4,671 2.4% Unclassified Establishments 594 2.8% 694 0.3%

Totals 20,965 100.0% 198,618 100.0%

44. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT D: Employment by Industry, Southfield City Centre

District– SIC Codes

Southfield Study Area Area: 0.86 Square miles

Total Businesses: 808 Total Employees: 13,275 Total Residential Population: 2,425 Employee/Residential Population Ratio: 5.47 BUSINESSES EMPLOYEES Number Percent Number Percent Agriculture & Mining 4 0.5% 0 0.0% Construction 20 2.5% 129 1.0% Manufacturing 24 3.0% 781 5.9% Transportation 11 1.4% 190 1.4% Communication 20 2.5% 158 1.2% Utility 0 0.0% 0 0.0% Wholesale Trade 35 4.3% 577 4.3%

Retail Trade Summary 73 9.0% 757 5.7% Home Improvement 0 0.0% 0 0.0% General Merchandise Stores 3 0.4% 12 0.1% Food Stores 2 0.2% 23 0.2% Auto Dealers, Gas Stations, Auto Aftermarket 4 0.5% 36 0.3% Apparel & Accessory Stores 2 0.2% 1 0.0% Furniture & Home Furnishings 20 2.5% 337 2.5% Eating & Drinking Places 28 3.5% 281 2.1% Miscellaneous Retail 14 1.7% 67 0.5%

Finance, Insurance, Real Estate Summary 174 21.6% 3,243 24.4% Banks, Savings & Lending Institutions 36 4.5% 143 1.1% Securities Brokers 42 5.2% 446 3.4% Insurance Carriers & Agents 42 5.2% 1,984 14.9% Real Estate, Holding, Other Investment 54 6.7% 670 5.0% Offices

Services Summary 369 45.7% 6,713 50.6% Hotels & Lodging 4 0.5% 168 1.3% Automotive Services 4 0.5% 19 0.1% Motion Pictures & Amusements 18 2.2% 247 1.9% Health Services 34 4.2% 647 4.9% Legal Services 81 10.0% 1,071 8.1% Education Institutions & Libraries 16 2.0% 168 1.3% Other Services 212 26.3% 4,393 33.1% Government 17 2.1% 585 4.4% Other 60 7.4% 142 1.1%

Totals 807 100.0% 13,275 100.0%

Southfield Retail Analysis 45. Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT D: Employment by Industry, Southfield City Centre District – NAICS Codes

Southfield Study Area Area: 0.86 Square miles Total Businesses: 808 Total Employees: 13,275 Total Residential Population: 2,425 Employee/Residential Population Ratio: 5.47 BUSINESSES EMPLOYEES Number Percent Number Percent Agriculture, Forestry, Fishing & Hunting 0 0.0% 0 0.0% Mining 0 0.0% 0 0.0% Utilities 0 0.0% 0 0.0% Construction 24 3.0% 166 1.3% Manufacturing 18 2.2% 716 5.4% Wholesale Trade 35 4.3% 577 4.3% Retail Trade 44 5.4% 463 3.5% Motor Vehicle & Parts Dealers 3 0.4% 14 0.1% Furniture & Home Furnishings Stores 1 0.1% 0 0.0% Electronics & Appliance Stores 20 2.5% 366 2.8% Building Material & Garden Equipment & Supplies Dealers 0 0.0% 0 0.0% Food and Beverage Stores 2 0.2% 11 0.1% Health & Personal Care Stores 1 0.1% 3 0.0% Gasoline Stations 1 0.1% 23 0.2% Clothing and Clothing Accessories Stores 3 0.4% 4 0.0% Sporting Goods, Hobby, Book, & Music Stores 3 0.4% 2 0.0% General Merchandise Stores 3 0.4% 12 0.1% Miscellaneous Store Retailers 7 0.9% 21 0.2% Nonstore Retailers 1 0.1% 7 0.1% Transportation & Warehousing 5 0.6% 82 0.6% Information 41 5.1% 433 3.3% Finance and Insurance 123 15.2% 2,675 20.1% Central Bank; Credit Intermediation & Related Activities 36 4.4% 143 1.1% Securities, Commodity Contracts, & Other Financial 44 5.4% 497 3.7% Investments & Related Activities Insurance Carriers and Related Activities; Funds, Trusts, 43 5.3% 2,034 15.3% & Other Financial Vehicles Real Estate & Rental & Leasing 44 5.4% 540 4.1% Professional, Scientific, & Technical Services 194 24.0% 3,886 29.3% Legal Services 85 10.5% 1,121 8.4% Management of Companies & Enterprises 4 0.5% 3 0.0% Administrative and Support & Waste Management & 54 6.7% 850 6.4% Remediation Services Educational Services 16 2.0% 119 0.9% Health Care & Social Assistance 51 6.3% 817 6.2% Arts, Entertainment, & Recreation 12 1.5% 161 1.2% Accommodation & Food Services 33 4.1% 462 3.5% Accommodation 4 0.5% 168 1.3% Food Services & Drinking Places 29 3.6% 294 2.2% Other Services (except Public Administration) 35 4.3% 647 4.9% Automotive Repair and Maintenance 4 0.5% 19 0.1% Public Administration 17 2.1% 585 4.4% Unclassified Establishments 59 7.3% 95 0.7% Totals 809 100.0% 13,277 100.0%

46. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

SIC SIC Codes

– EXHIBIT E: Employment by Industry, Southfield Study Area and Surrounding Area Area andSurrounding Area Study Southfield Industry, by Employment E: EXHIBIT

Southfield Retail Analysis 47. Gibbs Planning Group, Inc. 4 January 2012

NAICS Codes NAICS

Area Surrounding and Area Study Southfield Industry, by Employment (Cont‘d): E EXHIBIT

48. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT F: Market Profile Table

Southfield Retail Analysis 49. Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT F (Cont’d): Market Profile Table

50. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT F (Cont’d): Market Profile Table

Southfield Retail Analysis 51. Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT F (Cont’d): Market Profile Table

52. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT F (Cont’d): Market Profile Table

Southfield Retail Analysis 53. Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT F(Cont’d):Market Profile Table

54. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT F(Cont’d):Market Profile Table

Southfield Retail Analysis 55. Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT F(Cont’d):Market Profile Table

56. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

Exhibit G: Population Age Table

Southfield Retail Analysis 57. Gibbs Planning Group, Inc. 4 January 2012

Exhibit G (Cont’d): Population Age Table

58. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

Exhibit G (Cont’d): Population Age Table

Southfield Retail Analysis 59. Gibbs Planning Group, Inc. 4 January 2012

Exhibit G (Cont’d): Population Age Table

60. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

Exhibit G (Cont’d): Population Age Table

Southfield Retail Analysis 61. Gibbs Planning Group, Inc. 4 January 2012

Exhibit G (Cont’d): Population Age Table

62. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

Exhibit H: Income Profile Table

Southfield Retail Analysis 63. Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT I: Demographic and Income Table

64. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT I (Cont’d): Demographic and Income Table

Southfield Retail Analysis 65. Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT J: Primary Tapestry Lifestyle Table

66. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT J (Cont’d): Primary Tapestry Lifestyle Table

Exurbanites Rustbelt 3.2% Traditions 3.5% Retirement Communities 3.7% Old and Newcomers 3.8% Family Foundations 22.4%

Main Street, USA 4.3%

Modest Income Homes 4.6%

Metropolitans 6.3%

Metro City Edge 11.7%

Cozy and Comfortable 9.1%

Southfield Retail Analysis 67. Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT K: Tapestry Lifestyle Segment Descriptions

Demographic Family is the cornerstone of life in these neighborhoods that are a mix of married couples, single parents, grandparents, and young and adult children. The average family size is 3.3. The median age is 39.4 years, slightly older than the US median; 7 in 10 are aged 45 or older. Diversity is low; 84 percent of the population is black.

Socioeconomic The median household income is $46,990. Because workers are beginning to retire, the 58.1 percent labor force participation is below average. More than 20 percent of the employed residents work for the government. Approximately one-third of the households are on Social Security or public assistance. Their median net worth is $81,495. Although education attainment levels are below the US level, a slightly higher proportion of residents aged 25 or older have graduated from high school.

Residential These small urban communities are located in large metropolitan areas, primarily in the South and Midwest. Because these residents tend to stay put, very little household growth has occurred since 2000. More than 75 percent own their homes; the median home value is $91,154. Most of their houses are single-family, built before 1970.

Preferences Active in their communities, Family Foundations residents attend church, serve on church boards, help with fundraising projects, and participate in civic activities. They spend money on their families and home maintenance projects. Careful consumers, they watch their budgets. They eat at home, shop at discount stores such as Marshalls and T.J. Maxx, and take advantage of savings at Sam‘s Club. They‘re big TV fans; they watch courtroom shows, sports, and news programs. Viewership rates are very high; cable subscriptions are near the US level. Many households own multiple sets so they won‘t miss anything. They listen to gospel, urban, and jazz radio and read newspapers, Entertainment Weekly, and general editorial and newsmagazines. Basketball is a favorite sport; they play, attend professional games, watch games on TV, and listen to games on the radio.

68. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT K (Cont‘d): Tapestry Lifestyle Segment Descriptions

Demographic Married couples, single parents, and multigenerational families are the household types found in Metro City Edge neighborhoods. Grandparents are caregivers in 4 percent of these households, twice the US rate. The median age of this segment is 29.4 years because of the children, including adult children who still live at home. The average family size of 3.5 is slightly higher than the US average. Seventy-two percent of the residents are black; 17.3 percent are white; and 4 percent are American Indian—four times the US level.

Socioeconomic The median household income for this segment is $33,018; the median net worth is $14,773. Although 78 percent of households derive income from wages and salaries, 9 percent receive public assistance and 9 percent receive Supplemental Security Income. Nearly half of employed residents work in service industries. Unemployment is more than double the US level. One in ten residents aged 25 years or older have a bachelor‘s or graduate degree; four in ten have attended college.

Residential Metro City Edge residents live in older suburban neighborhoods of large metropolitan cities, primarily in the Midwest and South. Sixty-eight percent live in single-family homes; 14 percent live in buildings with two to four units. The home ownership rate is 53 percent; the median home value is $70,892. Although home prices are relatively inexpensive, many families are young, unsettled, and still renting. Seventy percent of the housing units were built before 1970.

Preferences Metro City Edge residents must spend their money wisely to ensure the welfare of their children. They tend to shop for groceries at Piggly Wiggly, Kroger, and Aldi but will go to superstores and wholesalers for bulk purchases of household and children‘s items. Some will have their vehicles serviced at auto parts chains. They eat at fast-food or family-style restaurants such as Old Country Buffet or Ryan‘s. They watch sitcoms, movies, news programs, courtroom shows, and sports such as pro wrestling on TV. Accessing the Internet at home isn‘t important. They go to the movies and professional football games and play basketball. They read music and baby magazines and listen to urban and contemporary hit radio.

Southfield Retail Analysis 69. Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT K (Cont‘d): Tapestry Lifestyle Segment Descriptions

Demographic Cozy and Comfortable residents are middle-aged married couples who are comfortably settled in their single-family homes in older neighborhoods. The median age of 42.3 years is five years older than the US median of 37 years. Most residents are married without children or married couples with school-aged or adult children. With 8.7 million people, this is a relatively large segment that is growing moderately by 0.48 percent annually since 2000. Most of these residents are white.

Socioeconomic Although the labor force is older, they are in no hurry to retire. The labor force participation rate is 65.7 percent; the unemployment figure is 9.3 percent. Employed residents work in professional, managerial, and service occupations in a variety of industry sectors. Occupation distributions are similar to US values. The median household income is $65,665. Income for 80 percent of the households is earned from wages and salaries. Forty-six percent of households receive investment income. Their median net worth is $181,850.

Residential Cozy and Comfortable neighborhoods are located in suburban areas, primarily in the Midwest, Northeast, and South. Many residents are still living in the homes in which they raised their children. Single-family structures make up 88 percent of the household inventory. The median home value is $154,868. Sixty-two percent of the housing units were built before 1970. Home ownership is at 85 percent.

Preferences Cozy and Comfortable residents prefer to own certificates of deposit and consult a financial planner. They typically hold a second mortgage, a new car loan, a home equity line of credit, and a universal life insurance policy. Home improvement and remodeling projects are important to them. Although they will contract for some work, they attempt many projects, especially painting and lawn care. Depending on the season, they play golf or ice skate for exercise. They attend ice hockey games, watch science fiction movies on DVD, and take domestic vacations. They eat at family restaurants such as Friendly‘s, Bob Evans Farms, and Big Boy. Going online isn‘t a priority, so they own older home computers. Television is very important; many households own four or more sets so they won‘t miss any of their favorite shows. They watch sports, particularly football, and news programs. Reading the Sunday newspaper is part of the routine for many.

70. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT K (Cont‘d): Tapestry Lifestyle Segment Descriptions

Demographic Residents of Metropolitans communities prefer to live in older city neighborhoods. Approximately half of these households are singles who live alone or with others; 40 percent are married-couple families. One in four of the residents is aged 20–34 years; the median age is 37.7 years. Diversity is low; most of the population is white.

Socioeconomic The labor force participation rate of 67.2 percent is well above average; the unemployment rate is 8.3 percent. Half of the residents who are employed work in professional or managerial positions. More than 75 percent of the population aged 25 years and older have attended college or completed a degree program. Thirty percent have earned a bachelor‘s degree, and 23 percent hold a graduate degree. The median household income is $60,191; the median net worth is $102,460. Nearly half of the households earn extra income from interest, dividends, and rental properties.

Residential Distributed throughout the country, residents of Metropolitans neighborhoods live in an eclectic mix of single-family homes and multiunit buildings. Sixty percent of the housing units were built before 1960. These neighborhoods change slowly; since 2000, the annual household growth is 0.28 percent. The home ownership rate is 60 percent, and the median home value is $192,372.

Preferences Metropolitans residents are no different from other owners of older homes who incur costs for maintenance and remodeling. They will contract for lawn maintenance and professional housecleaning services. Many will own or lease a station wagon. Planning for the future, residents own shares in investment funds, contribute to IRA savings accounts, and hold large life insurance policies. These residents pursue an active, urbane lifestyle. They travel frequently for business and pleasure. They listen to jazz, classical, public, and alternative music radio. They go to rock concerts, watch foreign films on DVD, read women‘s fashion magazines, and play a musical instrument. They also practice yoga and go kayaking, hiking/backpacking, and water and snow skiing. Active members of their communities, Metropolitans residents join civic clubs, volunteer for environmental causes, address public meetings, and work for a political party or candidate. They also belong to business clubs and contribute to PBS. They prefer to own and use a laptop computer, preferably an Apple. They go online daily to download music and buy books, airline tickets, CDs, and clothes. They also order merchandise by mail or over the phone.

Southfield Retail Analysis 71. Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT K (Cont‘d): Tapestry Lifestyle Segment Descriptions

Demographic Eighty-three percent of the residents in Modest Income Homes neighborhoods are black. Single-person and single-parent household types are predominant; however, a higher- than-average proportion of other family households is also present. The median age of 36 years is a year younger than the national median of 37. Many adult children still live at home. More than one-fourth are aged 65 years or older and have retired. Many are caregivers for their grandchildren, demonstrating strong family ties in these neighborhoods.

Socioeconomic Most of the retirees in Modest Income Homes rely on Social Security benefits for support. Slightly more employed residents work part-time than full-time, mainly in service and blue-collar occupations. The median house-hold income is $21,444; the median net worth is $12,922. The unemployment rate is 23.2 percent. Thirteen percent of households receive Supplemental Security Income, and 10 percent receive public assistance. With little savings, home equity contributes the lion‘s share to a household‘s net worth in these neighborhoods. More than 60 percent of residents aged 25 years and older have graduated from high school. Eight percent hold a bachelor‘s or graduate degree, and 28 percent have attended college.

Residential Most Modest Income Homes neighborhoods are in older suburbs of Southern metropolitan areas, with a smaller concentration in the Midwest. More than two-thirds of the housing is single-family dwellings; 15 percent are duplexes. Homeowners and renters are almost evenly divided. Seventy-one percent of the households own at least one vehicle. Because demand for housing is low, home prices are very moderate; the median home value is $53,529.

Preferences Residents are big fans of daytime and primetime TV. They go to the movies occasionally and also like to watch movies on TV channels such as the Lifetime Movie Network and The Movie Channel. They also watch football and basketball games on TV. They listen to urban radio. The Internet is the least effective way to reach these folks. To save money, they shop at discount stores, limit their long-distance telephone calls, and restrict nonessential services such as Internet access and fitness center memberships. When they participate in physical activities, they might play basketball. Most drive used domestic sedans.

72. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT K (Cont‘d): Tapestry Lifestyle Segment Descriptions

Demographic Main Street, USA neighborhoods are a mix of household types, similar to the US distribution. Approximately half of the households are composed of married- couple families, nearly one-third are single-person or shared households, and the rest are single-parent or other family households. The median age of 36.8 years nearly matches the US median. These residents are less diverse than the US population.

Socioeconomic The median household income is $57,196, derived from wages, interest, dividends, or rental property. Their median net worth is $84,763. More than one in five residents aged 25 years and older hold a bachelor‘s or graduate degree; half of the residents have attended college. Occupation and industry distributions are similar to those of the United States.

Residential A mix of single-family homes and multiunit buildings, these neighborhoods are located in the suburbs of smaller cities in the Northeast, West, and Midwest. Nearly two-thirds of the housing was built before 1970. The home ownership rate is 63; the median home value is $174,970.

Preferences Family-oriented and frugal, these residents may occasionally go to the movies or eat out at a family restaurant, such as Friendly‘s or Red Robin, but are most likely to stay home and watch a rental movie or play games with their children. They own pet cats. They play baseball and basketball and go swimming. They listen to classic hits and rock radio and watch cartoons and courtroom shows on TV. They go to the beach and theme parks or take domestic vacations to visit with family or see national parks. They go online periodically to look for jobs, research real estate, and play games and are beginning to shop online. Those who do not have Internet access at home will go online at school or the public library. They use the Yellow Pages to find veterinarians or stores. They will invest in small home improvement and remodeling projects, usually doing the work themselves instead of hiring a contractor. They buy the tools and supplies for these projects from Home Depot or Ace Hardware. They keep up their lawns and gardens by planting bulbs, fertilizing, and applying lawn care products regularly. Southfield Retail Analysis 73. Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT K (Cont‘d): Tapestry Lifestyle Segment Descriptions

Demographic Residents of these transitional neighborhoods are either beginning their careers or retiring. They range in age from their 20s to 75 and older. Their median age of 37.2 years splits this disparity. There are more singles and shared households than families in these neighborhoods. Most of the residents are white; however, the diversity closely resembles that of the United States.

Socioeconomic Sixty-four percent are in the labor force; the unemployment rate is 10.6 percent. The median household income of $44,601 and the median net worth of $23,498 are below the US medians. Educational attainment, college, and graduate school enrollment are above average. The distribution of employees by occupation is similar to that of the United States.

Residential Spread throughout metropolitan areas of the United States, Old and Newcomers neighborhoods sustain a lot of transition. More than half the population aged five years and older has moved in the last five years. More than 60 percent rent; approximately half in mid- or high-rise buildings, with nearly 14 percent in two- to four-unit buildings. Six in ten housing units were built between 1969 and 1989. The average gross rent in these neighborhoods is similar to the US average. The median home value is $149,772.

Preferences Their purchases reflect the unencumbered lifestyles of singles and renters. They spend less at the grocery store than larger households. A domestic subcompact or compact car serves them well. They arrange their vacations to keep in touch with out-of-town relatives and friends. They read fiction and nonfiction, newspapers, and magazines. They watch TV, listen to contemporary hits radio, go to the movies, and rent DVDs to view at home. Their leisure activities are as varied as their ages. They exercise by walking, swimming, and going bowling. They also cook at home.

74. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT K (Cont‘d): Tapestry Lifestyle Segment Descriptions

Demographic Most of the households in Retirement Communities neighborhoods are single seniors who live alone; a fourth is married couples with no children living at home. This older market has a median age of 52.6 years. One-third of the residents and 44 percent of householders are aged 65 years or older. Twenty-three percent of the population and 31 percent of householders are aged 75 years or older. Most of the residents are white.

Socioeconomic The median household income for Retirement Communities is $49,174, slightly below the US median, but the median net worth of $99,494 is much higher than the US value. Nearly half of the households earn income from interest, dividends, and rental properties; 45 percent receive Social Security benefits; and 26 percent receive retirement income. Most of those still working are employed in white-collar occupations. Retirement Communities residents are an educated group: 14 percent of the residents aged 25 years and older hold a graduate degree, 35 percent have a bachelor‘s degree, and more than 60 percent have attended college.

Residential Retirement Communities neighborhoods are found mostly in cities scattered across the United States. Most housing was built after 1959. Congregate housing with meals and other services included in the rent is a feature of these neighborhoods. Fifty-seven percent of the households live in multiunit buildings; however, 34 percent of the housing is single-family structures, and 8 percent is townhouses. The home ownership rate is 54 percent; the median home value is $183,328.

Preferences With more time to spend on leisure activities and hobbies, residents play musical instruments, paint or draw, work crosswords, play bingo, or attend adult education classes. They also visit museums, attend the theater, go dancing, practice yoga, go canoeing, and play golf. They will travel to gamble in Atlantic City or to visit Disney World. They attend sports events such as golf tournaments, tennis matches, and baseball games. They spend time with their grandchildren and spoil them with toys. Politically active, these residents are ―joiners‖ and belong to civic clubs and charitable organizations. They own stocks and bank online. They prefer to own or lease a domestic vehicle. These residents describe themselves as moderate or frequent viewers of daytime and primetime TV. They watch news programs and baseball games, tennis matches, and golf tournaments. Cable channel favorites are Bravo, truTV, ESPN news, and Travel Channel. They listen to classical and public radio. Avid readers, they regularly read daily newspapers. Southfield Retail Analysis 75. Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT K (Cont‘d): Tapestry Lifestyle Segment Descriptions

Demographic These neighborhoods are primarily a mix of married-couple families, single parents, and singles who live alone. With a population of 8.4 million, this segment is one of Tapestry Segmentation‘s largest. The median age is 36.7 years, just below the US median. There is little diversity in these communities.

Socioeconomic The median household income is $51,378, slightly below that of the US median. Half of the employed residents work in white-collar jobs. For years, these residents sustained the manufacturing industry that drove local economies. Now, the service industry predominates, followed by manufacturing and retail trade. The median net worth is $82,469. Their education attainment is improving; more than 84 percent of residents aged 25 years and older have graduated from high school, 15 percent hold a bachelor‘s or graduate degree, and 44 percent have attended college.

Residential The backbone of older industrial cities in the Great Lakes border states, residents of these neighborhoods live in modest, single-family homes. Home ownership is 72 percent. The relatively low median home value of $94,696 is because nearly two-thirds of the housing was built before 1960.

Preferences These residents stick close to home; for years, they‘ve lived, worked, shopped, and played in the same area. Not tempted by fads, they stick to familiar products and services. They drive domestic cars. They will spend money on their families, yard maintenance, and home improvements. They will hire contractors for special projects such as the installation of roofing, carpet, and flooring. These financially conservative residents prefer to bank at a credit union and have personal savings. They might carry a personal loan and hold low-value life and homeowner‘s insurance policies. They‘re frugal and shop for bargains at Sam‘s Club, JCPenney, and Kmart. They go online weekly to play games and shop. They go bowling, fishing, and hunting and attend car races, country music shows, and ice hockey games. They‘re big TV fans; they watch sitcoms and sports events. They also subscribe to cable and watch it regularly. Favorite channels are truTV, the Game Show Network, and the Disney Channel.

76. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT K (Cont‘d): Tapestry Lifestyle Segment Descriptions

Demographic Exurbanites residents prefer an affluent lifestyle in open spaces beyond the urban fringe. Although 40 percent are empty nesters, another 32 percent are married couples with children still living at home. Half of the householders are aged between 45 and 64 years. They may be part of the ―sandwich generation,‖ because their median age of 45.5 years places them directly between paying for children‘s college expenses and caring for elderly parents. To understand this segment, the lifestage is as important as the lifestyle. There is little ethnic diversity; most residents are white.

Socioeconomic The 65.2 percent labor force participation rate is slightly higher than the US rate of 62.4 percent. Approximately half work in substantive professional or management positions. These residents are educated; more than 40 percent of the population aged 25 years and older hold a bachelor‘s or graduate degree; approximately three in four have attended college. The median net worth is $368,532, approximately four times the national figure. The median household income is $84,522. More than 20 percent earn retirement income; another 57 percent receive additional income from investments.

Residential Although Exurbanites neighborhoods are growing by 1.61 percent annually, they are not the newest areas. Recent construction comprises only 22 percent of the housing. Seventy percent of the housing units were built after 1969. Most are single-family homes. The median home value is $248,490, more than one-and-one-half times the national median. Because Exurbanites cannot take advantage of public transportation, nearly 80 percent of the households own at least two vehicles. Their average commute time to work is comparable to the US average.

Preferences Because of their lifestage, Exurbanites residents focus on financial security. They consult with financial planners; have IRA accounts; own shares in money market funds, mutual funds, and tax- exempt funds; own common stock; and track their investments online. Between long-term care insurance and substantial life insurance policies, they are well insured. Many have home equity lines of credit. To improve their properties, Exurbanites residents work on their homes, lawns, and gardens. They buy lawn and garden care products, shrubs, and plants. Although they will also work on home improvements such as interior and exterior painting, they hire contractors for more complicated projects. To help them complete their projects, they own all kinds of home improvement tools such as saws, sanders, and wallpaper strippers. They are very physically active; they lift weights, practice yoga, and jog to stay fit. They also go boating, hiking, and kayaking; and take photos. When vacationing in the United States, they hike, downhill ski, play golf, attend live theater, and see the sights. This is the top market for watching college basketball and professional football games. They listen to public and news/talk radio and contribute to PBS. They participate in civic activities, serve on committees of local organizations, address public meetings, and help with fundraising. Many are members of charitable organizations.

Southfield Retail Analysis 77. Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT L: Housing Profile Table

78. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT L (Cont’d): Housing Profile Table

Southfield Retail Analysis 79. Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT L (Cont’d): Housing Profile Table

80. Southfield Retail Analysis Gibbs Planning Group, Inc. 4 January 2012

TABLE OF CONTENTS

Hotel Market Analysis Figure 1: City Centre District Can Support a New Hotel Photo ...... 1 Executive Summary ...... 1 Figure 2: Easton and Legacy Town Centers ...... 2 Michigan Tourism Trends ...... 2 Figure 3: Michigan Tourism Volumes Graph ...... 3 Figure 4: Lodging Occupancy Comparisons Graph ...... 3 Figure 5: Michigan Tourism Expenditure Graph ...... 4 Figure 6: Michigan Tourism Destinations by Region Chart...... 4 Figure 7: Tourism Expenditure per Day by Category & Region Graph ...... 5 Southfield/Northwest Lodging Market Conditions ...... 5 Table 1: Annual Lodging Statistics ...... 6 Table 2: Southfield/Northwest Industry Measures ...... 6 Table 3: Lodging Facilities by Classification ...... 7 Figure 8: Southfield/Northwest Number of Rooms by Class Graph ...... 8 Southfield Lodging Demand ...... 8 Existing Southfield/Northwest Lodging Locations ...... 9 Figure 9: Southfield/Northwest Lodging Submarket Properties ...... 9 Figure 10: The Townsend and Westin Hotels ...... 10 Figure 11: The Marriot and Embassy Suites Hotels ...... 10 Figure 12: The Hilton Garden Inn and Springhill Suites ...... 11

SUMMARY OF FINDINGS ...... 12 Study Assumptions ...... 12 Limits of Study ...... 12

APPENDIX Exhibit A: Data by Measure ...... 14 Exhibit B: Percent Change from Previous Year – Detail by Measure ...... 16 Exhibit C: Percent Change from Previous Year – Detail by Year ...... 18 Exhibit D: Twelve Month Moving Average ...... 20 Exhibit E: Day of Week Analysis ...... 22 Exhibit F: Classic Data ...... 23 Exhibit G: Methodology and Glossary (Exhibits A-F) ...... 26 Exhibit H: Supply Summary ...... 27 Exhibit I: Pipeline by Brand Summary ...... 28 Exhibit J: Changes to Existing Supply by Brand ...... 29 Exhibit K: Data by Property ...... 31 Exhibit L: Construction Pipeline ...... 33 Exhibit M: Glossary (Exhibits H-L) ...... 33

City of Southfield Hotel/Hospitality Market Analysis Gibbs Planning Group 4 January 2012

Figure 1: The Southfield City Centre District can support a new 190 room hotel such as a Doubletree, Hyatt or Marriott.

Executive Summary This study finds that the Southfield City Centre District can statistically support an additional 190 room 3.5 star hotel by 2016. Numerous independent hospitality groups as well as many national brands including Doubletree, Embassy Suites, Hilton Suites, Hyatt, Marriott, Radisson and Sheraton are among the hotels that meet the industry’s 3.5 star rating. However, while Southfield has the potential for a new hotel, present tight credit and severe financing restrictions may make it challenging to implement with conventional development methods.

Although the region suffered a near collapse in the lodging industry during 2008-2009, the market has self-corrected since 2008 by: reducing the supply of room nights available by 28 percent, increasing occupancy by nearly 30 percent, converting product type towards the upper midscale classification by downscaling from upper levels, and moving up from the economy group. The City Centre District has the opportunity to capture demand from increased levels of tourism, generated by both the leisure and business segments.

Future lodging products should attempt to establish access to offsite attractions in the immediate walkable vicinity, and offer at least the minimum amenities associated with a 3.5 star business-class hotel. To earn the hospitality industry’s 3.5 star hotel rating level, the upper midscale-class rooms must include most of the following amenities: large Southfield Hotel/Hospitality Analysis 1. Gibbs Planning Group, Inc 4 January 2012

room desks with comfortable workstations, chairs, TVs housed in armoires, larger bathrooms, quality bedding, incandescent lighting and stone countertops. On-site hotel amenities must include most of the following: multiple restaurants, upscale lobby and decor including live plants, attractive pool areas, spa/massage facilities, and uniformed bell staff.

Gibbs Planning Group’s (GPG) findings are based on the following conservative parameters: a stable occupancy rate of between 50 percent and 55 percent, an annualized room demand growth rate in the range of 1.0 to 1.1 percent, an average daily room rate hovering around $83.50, and existing or improved economic conditions.

The opportunity to support a 4-5 star hotel is hindered by limited walkable off-site amenities for guests in the City Centre District such as shopping, restaurants, and personal services, like those found near Birmingham’s Townsend Hotel, the submarket’s only 5 star luxury hotel. Leading hotels have found a large demand for lodging in mixed- use walkable town centers such as Legacy Town Center in Plano, Texas; Phillips Place in Charlotte, Virginia, and Easton Town Center in Columbus, Ohio, where guests can walk to a selection of dining and shopping venues.

Figure 2: Hotels have proven very successful with locating in carefully planned mixed-use town centers where they appeal to both business and vacation travelers. (Easton Town Center, Columbus, Ohio above left, and Legacy Town Center, Plano, Texas, above right. Image source: Marriott website).

Michigan Tourism Trends In 2006, Michigan kicked off its award-winning tourism campaign titled “Pure Michigan.” The $6.3 million dollar budget (approximately twice the previous year’s marketing effort), made 2006 the recent peak in terms of tourism volume at 109.1 million visitors. Michigan’s travel industry creates 200,000 jobs and expenditures of $18.8 billion.

Unfortunately, the momentum gained by this effort was exhausted over the next couple of years by gasoline prices hitting all-time highs, domestic and international terrorism events at Virginia Tech and Mumbai, and the national economic crisis which began in the fourth quarter of 2008.

2. Southfield Hotel/Hospitality Analysis Gibbs Planning Group, Inc. 4 January 2012

Michigan Tourism Volumes

85 80 75 70 65 60 55 50 45 40 35 30 25 20 15 10 5 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 Numberof Travelers (millions)

Leisure Travelers Business Travelers

Figure 3: Volume of leisure and business tourists visiting Michigan. (Source: Michigan Economic Development Corp.)

The tourism slump felt by Michigan in 2009 saw a reduction in tourism expenditure from $16.3 billion to $15.1 billion, business and leisure trip volume to 93.4 million travelers, hotel occupancy to a rate of 46.85 percent, hotel revenue per available room down to $36.50, and local travel industry jobs to 142,400. Business travel declined by 9.1 percent from 2008, while leisure travel only fell by 2.1 percent. Business travel expenditure weakened by 9.5 percent in 2009, but leisure expenditure only sank by 6.6 percent. The out-of-state visitor-days level tumbled by 8.5 percent, while in-state visitors declined by just 6.3 percent.

As the economy and auto industry began to recover in 2010, so did tourism in Michigan. The number of vacationers visiting Michigan in 2010 increased to a level of 94.5 million, a 1.18 percent improvement over 2009. Expenditures rose 13.9 percent in 2010 to $17.2 million. The upward trend has continued into 2011 with three percent gains projected by the Department of Community, Agriculture, Recreation & Resource Studies of Michigan State University, an expert in Michigan travel industry statistics.

Lodging Occupancy Comparisons

75.0%

70.0%

65.0% percentage

60.0%

55.0%

Occupancy 50.0%

45.0% US Michigan Metro Detroit Southfield Aug 2011 Occupancy Aug 2010 Occupancy 2011 Ytd Occupancy 2010 Ytd Occupancy

Figure 4: Year-to-year and year-to-date occupancy comparisons show significant improvement in Michigan’s hospitality industry. (Source: Michigan Economic Development Corp.)

Southfield Hotel/Hospitality Analysis 3. Gibbs Planning Group, Inc 4 January 2012

Michigan Tourism Expenditure

$18.5 $17.5 $16.5 $15.5 $14.5 $13.5 $12.5 $11.5 $10.5 $9.5 $8.5 $7.5 Expenditure(billions) $6.5 $5.5 $4.5 $3.5 2002 2003 2004 2005 2006 2007 2008 2009 2010

Total Travel Expenditure Leisure Expenditure Business Expenditure

Figure 5: Tourism Expenditure (not adjusted for inflation). (Source: Michigan Economic Development Corp.)

Michiganders generated 61.1 percent of travel days within the state. Illinois accounted for the next highest percentage of travel to Michigan, at 6.0 percent. In descending order: Ohio, Indiana, Florida, Wisconsin, Georgia, Tennessee, California, and New York constituted an additional 25.7 percent of tourism. The most popular reasons for domestic leisure visitors coming to Michigan include: visiting relatives, beaches/waterfront, fishing/hunting, sightseeing, dining, shopping, and gambling.

Michigan Tourism Destinations by Region

Southeast 40%

Upper Peninsula 10% Southwest Northeast 20% 14%

Northwest 16%

Figure 6: Southeast Michigan, including the Metro Detroit area, is the most popular tourist destination in the state. (Source: D. K Shifflet & Associates, Ltd., 2010.) 4. Southfield Hotel/Hospitality Analysis Gibbs Planning Group, Inc. 4 January 2012

The typical Michigan leisure travel party consists of 2.45 persons, compared to the southeast region’s 2.23 persons. The main purpose of their travel is visiting friends and relatives. Two-thirds of the groups are comprised of families and couples. The representative visitor spent $75 per day, with the largest proportion allocated towards transportation. Food, shopping, entertainment, and miscellaneous expenses account for the balance of daily expenditures.

Total trip spending is at the $364 level, with the Upper Peninsula topping out at $500, because of longer average stays. Average length of stay is 1.19 days, with the Upper Peninsula skewing the average upward with 1.76 day. Four out of five sightseers traveled by auto. Peak vacation season is during the months of June, July, and August. Michigan trails national travel expenditure by almost 30 percent, at $75 per day. The southeast and southwest regions lead at $80 and $79 per day, respectively. The northeast section of Michigan lags behind the other areas at a daily rate of $65.

Tourism Expenditure per day by Category and Region

$15

$3 $3 $4 $16 $11 $12 Miscellaneous $11 $4 $4 $4 $8 $14 $14 Entertainment $14 $13 $10 $14 $7 $9 $19 Shopping $8 $11 $8 $23 $10 Food & Drink $18 $8 $6 $20 $18 $15 Accommodation $17 $15 Transportation $26 $27 $21 $23 $18 $14 $17

Figure 7: Michigan, and its’ five sub-regions lag behind national daily tourism expenditure in all satellite account categories. (Source: D. K Shifflet & Associates, Ltd., 2010.)

Southfield/Northwest Lodging Market Conditions The Metropolitan Detroit lodging market contains eight submarkets. In clockwise order the sub-regions consist of: Auburn Hills/Madison Heights, Warren/Northeast, Windsor, Detroit/Dearborn, Romulus/Airport, Ann Arbor/Jackson, Livonia/West, and Southfield/ Northwest. The Southfield/Northwest area contains Southfield, Birmingham, Waterford, Clarkston, Commerce, and Farmington Hills.

Southfield Hotel/Hospitality Analysis 5. Gibbs Planning Group, Inc 4 January 2012

Table 1: Annual Lodging Statistics

Room Ave. Daily Room Nights Year Occupancy Rev-Par Nights Rate Sold Available 2005 52.8% $82.44 $43.57 1,042,845 1,975,495 2006 52.4% $88.10 $46.12 1,036,809 1,979,739 2007 55.2% $87.71 $48.36 1,062,781 1,926,966 2008 55.2% $87.79 $48.60 1,034,681 1,870,022 2009 46.9% $77.93 $36.50 825,815 1,764,395 2010 53.4% $72.53 $38.78 907,181 1,697,615 2011 60.5% $73.88 $44.74 814,954 1,349,132

Table 1: Year-to-year and year-to-date occupancy comparisons show significant improvement in Michigan’s hospitality industry categories: 2011 numbers for occupancy, average daily rate, revenue per available room, demand, and supply are through 10/31/11. (Source: Smith Travel Research, 2011)

Similar to the Michigan and national levels, this submarket bottomed out in 2009 at 46.8 percent occupancy, $36.50 revenue per available room, and only 907,000 nights sold. Figure 8 depicts current and recent levels of occupancy, average daily rate, revenue per available room, room nights sold, and room nights available.

At the beginning of November 2011, this submarket contained 38 operating properties, composed of 4,386 rooms and 64,000 square feet (sf) of meeting space. There is one luxury facility containing 150 rooms, three upper upscale properties holding 852 rooms, four upscale having 626, ten upper midscale maintaining 1,051 rooms, four midscale hotels comprised of 495 rooms, six economy with 696 rooms, and ten independent operators managing 516 rooms. The average age of all buildings is 24 years old, with midscale establishments averaging only 18 years old, and independents at 30 years.

Table 2: Southfield/Northwest Industry Measures

2011 Industry Measure 6 Year Average Change Year To Date

Occupancy 60.5% 52.7% 14.80% Average Daily Rate $73.88 $82.75 -10.72%

Revenue per Available Room $44.74 $43.66 2.47%

Room Supply 139,900 144,100 -2.91% Room Demand 87,700 81,268 7.91% Revenue $72,369,000 $81,942,000 -11.68%

Table 2: The Southfield/Northwest Detroit lodging submarket is currently recovering from the lows hit in 2009. (Source: Smith Travel Research, Inc. 2011)

6. Southfield Hotel/Hospitality Analysis Gibbs Planning Group, Inc. 4 January 2012

Table 3: Lodging Facilities by Classification

Rooms Rooms Net Meeting Removed Number Average Added to Change Property Number of Space from of Age Class in Class Class Properties (square Class Rooms (years) (past 60 (past 60 feet) (past 60 months) months) months)

Luxury 1 150 8,758 23

Upper 3 852 24,697 24 -194 -194 Upscale Upscale 4 626 9,916 21 -144 194 50 Upper 10 1,051 17,993 19 -416 226 -190 Midscale Midscale 4 495 1,612 18 -105 249 144 Economy 6 696 200 20 -168 -168

Independent 10 516 650 30 -1,520 882 -638 Totals 38 4,386 63,826 24 -2,547 1,551 -996

Table 3: The Southfield/Northwest hospitality market has seen a net loss of almost 1,000 rooms over the last five years. (Source: Smith Travel Research, 2011)

There are currently two projects planned in this Southfield submarket, an upscale Staybridge Suites in Southfield at the final planning stage pending financing, and an upper midscale Comfort Inn & Suites at the pre-planning level, to be located in Clarkston. The most recent lodging construction occurred in 2005, the opening of a Hampton Inn on Loop Road in Commerce Township. Before that, in 2003, both the upscale Springhill Suites and upper midscale Comfort Suites opened in the city of Southfield.

Since Michigan’s recession began in 2005, it is not surprising that there hasn’t been any new lodging construction during the last 60 months. There have been a number of properties repositioning themselves in the market: Hilton converted its 194-unit upper upscale facility to a Hilton Garden Inn at the upscale level, and the upscale Residence Inn containing 144 rooms downgraded two levels to midscale Hawthorn Suites by Wyndham.

During the last 60 months, the Southfield/Northwest market suffered a net loss of - 996 rooms, most of which came from the independent class which lost -638 rooms. The upper upscale room count declined by -194, the upper midscale dropped -190 units, and the economy classification decreased by -168. Only the midscale and upscale categories saw net gains of +144 and +50 respectively. Independent operators have been hit hardest by this recession, losing five hotels but having two branded hotels convert. The upper upscale class lost a property while the upscale hotels netted no change, upper midscale expanded by one, midscale grew by one building, and the economy category shed two.

Southfield Hotel/Hospitality Analysis 7. Gibbs Planning Group, Inc 4 January 2012

Figure 8: The independent class of inns in the Southfield/Northwest area was hit the hardest by the recession, suffering more than a 50 percent loss of rooms since 2006. (Source: Smith Travel Research, 2011)

Southfield Lodging Demand Although tourism is not running at recent peak levels, it has stabilized from the collapse of 2008-2009. Southfield is well positioned to capture growth in both the leisure and business traveler markets. Business travelers are attracted by the 27 million sf of office space, which is more than Detroit’s CBD, as well as the seven million sf of other commercial space. Southfield’s broad employment base includes significant employment levels in the areas of healthcare, communications, automotive, and education. Leisure travelers are attracted because of its prime position as a first ring community, a population base of nearly 78,000, and the Metropolitan area’s best arterial links via I- 696, M-10, M-39, and Telegraph Road. The easy access to the surrounding communities, near and far, accommodates the number one motivation for travelers coming to this region: visiting friend and relatives.

The City of Southfield presently has 2,574 lodging rooms, which is 41.3 percent of the Southfield/Northwest region’s inventory. At just over 37,000 sf, the city accounts for 58.7 percent of the attached meeting space associated with the hotels. Although it is projected to lose 1.2 percent of its population by 2015, the entire lodging region is projected to gain 2.6 percent during the same period.

The number of room nights sold climbed 9.3 percent from the market bottom of 2009 to 2010. Although the pace of year-to-date growth has slowed somewhat to 6.6 percent from 2010 to 2011, a growth rate of 1.02 percent will be used, representing the historical 15-year trend of growth in Michigan hotel room demand.

8. Southfield Hotel/Hospitality Analysis Gibbs Planning Group, Inc. 4 January 2012

Existing Southfield/Northwest Lodging Locations

Upscale/Luxury Independent Midscale Economy Planned Closed

Figure 9: The Southfield/Northwest lodging submarket has 38 operating properties stretching from Southfield to Clarkston. Most are clustered in a 5-mile radius from the intersection of Telegraph and 12 Mile roads, as shown above.

Southfield’s hotel product dominates the upper upscale and upscale classes of the Southfield/Northwest submarket in Metro Detroit. All of the upper upscale and three of four of the upscale class buildings are located in the City. This concentration of 1,277 rooms is almost half of its total number of rooms. While about 50 percent of the rooms are upscale or better, only 601 are in the economy or independent classification. The remaining 696 units are in the midscale range.

There are no luxury category hotels in the city of Southfield, although there is one located in the Southfield/Northwest submarket. The Townsend Hotel, owned by the Preferred Hotel Group, is located in downtown Birmingham. This 150-room building takes advantage of its proximity to walkable attractions and amenities found nearby. The boutique property, constructed in 1988, remains one of the preeminent and desirable lodging destinations in Metro Detroit.

Southfield Hotel/Hospitality Analysis 9. Gibbs Planning Group, Inc 4 January 2012

Figure 10: The Townsend Hotel (left) and the Westin Hotel (right) represent some of the finest lodging available in the Southfield/Northwest submarket. Both facilities take advantage of walkable off-site amenities, including shopping, restaurants, and personal services (Image on the right from the Townsend web site).

The Westin Southfield Detroit, the largest lodging property in the Southfield-Northwest area at 388 rooms, is located in the heart of the Southfield Town Center complex. Opening in 1987, it contains 15,000 sf of meeting space, and is linked to the 1000, 2000, 3000, and 4000 Town Center office buildings

The Detroit Marriott Southfield, located on Northwestern Highway, is a six-story, 225- room upper upscale property. This facility has great vehicular access to the surrounding conveniences, but there are a limited number of destinations in a walkable area. The Marriott has 4,300 sf of meeting rooms on site, an indoor pool, business and fitness centers, and an onsite restaurant.

The third upper upscale hotel in Southfield is the Embassy Suites, a Hilton property, located on Franklin Road. The 239-room inn also has 6,300 sf of meeting space. Built in 1987, it has great freeway access, but limited access to walkable offsite comforts. Onsite facilities include a restaurant, room service, business and fitness centers, airline and concierge desk, and indoor pool.

Figures 11: The Marriot (left) and Embassy Suites (right) are the other two upper upscale properties in the Southfield/Northwest region, but lack access to walkable amenities.

10. Southfield Hotel/Hospitality Analysis Gibbs Planning Group, Inc. 4 January 2012

Figures 12: The Hilton Garden Inn (left) was converted from an upper upscale brand Hilton to their upscale brand Garden Inn in 2007. The SpringHill Suites property is the other upscale property in Southfield, west of Telegraph Road.

Southfield’s three upscale class sites are located within a one-mile radius of the Telegraph Road/I-696 junction. The 852 rooms found in this category among the three buildings make the upscale classification the largest in the Southfield/Northwest region. One of the properties, the Hilton Garden Inn, was renovated and economized from the upper upscale designation in 2007, reflecting market conditions.

The Hilton Garden Inn on American Drive is a 194-room upscale hotel, built in 1998, and renovated in 2007. This location has excellent arterial access, but limited walkable commercial destinations. It has 4,300 sf of meeting space, complementing its business & fitness centers, pool, restaurant, and concierge service.

The upscale SpringHill Suites by Marriott on Northwestern Highway is the second youngest lodging property in the Southfield/Northwest region, having opened in June of 2003. This small 84-room facility has a single 300 sf meeting room. Positioned to be convenient for both Southfield’s office space concentration, and Farmington Hills office corridor along the northern portion of Northwestern Highway, it is an efficient, modern, and accessible site.

The Courtyard Detroit Southfield, located east of Telegraph Road on Northwestern Highway, is a 147-room upscale hotel built in 1988. The three-floor building has 1,250 sf of meeting space, business & fitness centers, on-site parking, and a restaurant. This property is immediately next to the upper upscale Marriott, and has the same issues with good vehicular access, but limited walkability to desirable destinations.

Southfield has limited representation in the upper midscale and midscale classifications. There are only three properties in each of these categories, with 326 rooms in the former, and 370 in the latter grouping. These classes account for most of the conversion activity over the last 60 months. The upper midscale grouping has seen 415 rooms converted out over the last 60 months, and 202 rooms converted into it for a net loss of - 213. The midscale classification has gained 249 rooms in conversions, and lost 105, for a net total of +144. This activity comes from room migration from both upscale and economy product.

The economy and independent classes make up only 23.3 percent, or 601 rooms, of the total Southfield market. This limited representation in the marketplace is due to the net

Southfield Hotel/Hospitality Analysis 11. Gibbs Planning Group, Inc 4 January 2012

loss of 168 rooms of economy lodging and 638 rooms of independent lodging during the last 60 months. This trend was exacerbated by the 2008 downturn, losing 106 and 263 net units during the October 2010 to October 2011 period. Although this finding of a declining market share for low end products during a recession is counterintuitive, the explanation may lie in Southfield having a competitive disadvantage for economy class lodging because of higher fixed costs. Surrounding markets have lower costs, such as property taxes, labor rates, and utilities, which allow for a much lower room rate floor.

SUMMARY OF FINDINGS GPG concludes that lodging demand in the City Centre District can support 190 new lodging units by 2016. Although the Southfield market is operating near recent lows, the worst is likely over. The combination of repositioning existing product, aging hotel stock, and the elimination of nearly 1,000 rooms over the last 60 months were the adjustments needed to take advantage of demand created by increasing employment and population in the southeast Michigan region.

Study Assumptions The findings of this study are based on the following assumptions:

The Southfield-Northwest market will continue to support a 1.02 percent annualized growth in room demand through 2016.

Lodging occupancy rate will remain at 53.7 percent or higher through 2016 (Note, the 2011 occupancy rate was 60.5 percent and the 6-year average is 52.7 percent).

The 2016 Lodging Potential Gross Revenue for Southfield/Northwest Submarket is $85,300,000.

In 2016, GPG projects a $14.2 million annual gap or unmet lodging supply and demand for new hospitality sales.

The existing room inventory will remain unchanged through 2016. The opening of new hotels or the closing of existing rooms would alter the demand.

The regional, state and national economy will return to normal or at least remain at present levels of growth, unemployment and consumer demand.

Southfield could out-perform its existing lodging market demand with a strong brand located within a state-of-the-art walkable mixed-use development such as Easton Town Center in Columbus, Ohio or Legacy Town Center in Plano, Texas.

Limits of Study Every reasonable effort has been made to ensure that the data contained in this study reflect the most accurate and timely information possible and are believed to be reliable. This study is based on estimates, assumptions, and other information developed by GPG independent research effort, Smith Travel Research reporting, general knowledge of the industry, and consultations with the client and its representatives.

12. Southfield Hotel/Hospitality Analysis Gibbs Planning Group, Inc. 4 January 2012

The proprietary room demand estimate produced by GPG relies on the growth and trend rates of: U.S. Gross Domestic Product, number of Michigan visitors, Southfield/ Northwest submarket room demand, occupancy rate, average daily rate, and a proportional capture rate for the Southfield study area.

No responsibility is assumed for inaccuracies in reporting by the client, its agent and representatives or in any other data source used in preparing or presenting this study. This report is based on information that was current as of December 10, 2011, and GPG has not undertaken any update of its research effort since such date.

This report may contain prospective financial information, estimates, or opinions that represent GPG’s view of reasonable expectations at a particular time, but such information, estimates, or opinions are not offered as predictions or assurances that a particular level of income or profit will be achieved, that particular events will occur, or that a particular price will be offered or accepted.

Actual results achieved during the period covered by our prospective financial analysis may vary from those described in our report, and the variations may be material. Therefore, no warranty or representation is made by GPG that any of the projected values or results contained in this study will be achieved. This study should not be the sole basis for programming, planning, purchasing, financing, or development of any commercial project. This study is for the use of the client for general market analysis purposes only and is void for other site locations or developers.

- END OF STUDY -

Southfield Hotel/Hospitality Analysis 13. Gibbs Planning Group, Inc 4 January 2012

60.4 74.00 44.70 52.852.455.255.3 53.9 46.8 54.0 53.4 56.4 57.4 52.7 47.2 54.1 54.7 Exhibit A: by Measure Data Exhibit 45.3 49.2 51.4 53.1 54.7 60.5 59.5 61.7 56.1 55.8 50.0 43.3 44.245.946.750.4 46.738.4 54.043.0 48.548.3 52.7 50.4 51.9 44.8 51.7 47.5 56.3 52.8 52.7 51.6 44.3 50.9 49.8 58.2 54.7 56.7 47.0 56.0 52.2 55.8 55.6 59.0 57.3 59.0 45.3 64.2 53.3 58.5 62.7 61.0 57.2 52.8 61.7 59.9 65.0 58.1 66.6 48.7 57.8 59.5 65.5 66.5 69.6 54.7 50.5 53.5 62.5 59.0 68.6 54.4 54.7 51.1 52.9 56.6 60.1 64.2 52.5 51.7 50.0 47.4 56.4 52.9 64.5 46.8 42.8 47.4 41.3 53.7 45.2 42.3 41.8 46.8 86.8097.7291.83 80.0896.37 115.9682.83 86.6472.37 78.48 89.43 82.6073.83 78.6186.77 88.32 80.97 72.17 85.92 84.03 70.71 78.40 88.90 85.93 72.47 82.43 90.43 84.51 73.11 88.0838.38 80.25 87.35 72.73 84.5944.87 88.49 83.09 71.9042.87 77.81 82.75 86.19 37.3748.58 72.29 83.23 88.06 82.81 62.6331.82 75.33 80.43 41.9931.09 81.64 84.29 41.34 73.32 45.04 82.2835.65 85.40 42.88 83.75 75.66 35.2439.31 77.21 45.70 81.93 45.60 34.26 86.75 72.20 45.40 43.38 37.28 93.29 83.16 73.67 34.74 85.94 45.26 42.29 78.29 80.19 36.09 45.12 52.63 74.32 89.28 41.43 47.30 41.42 75.37 87.97 84.04 41.23 48.74 89.37 37.96 82.57 49.88 76.75 50.69 39.97 49.00 74.50 88.37 35.23 43.95 55.34 74.88 85.95 38.51 48.73 82.57 55.20 85.47 82.07 73.35 45.97 47.37 42.51 72.38 44.68 52.01 87.73 43.90 47.79 74.37 55.55 81.06 80.66 50.35 48.39 81.49 81.95 37.63 72.29 49.56 56.83 42.96 71.66 86.92 64.93 45.46 49.01 81.09 39.53 45.97 47.72 80.46 82.48 71.08 46.43 87.87 52.70 69.96 51.68 47.87 45.95 87.64 50.99 39.23 47.27 88.09 78.87 82.62 42.14 53.10 88.53 77.97 48.05 45.14 42.72 72.60 87.68 46.02 36.69 40.55 89.15 40.80 46.43 83.19 79.11 47.99 37.91 34.51 72.92 45.43 34.23 33.84 38.45 39.30 82.42 34.31 40.21 43.54 29.73 46.02 32.76 48.33 48.74 34.18 44.55 36.50 47.78 38.80 49.42 51.19 43.84 37.37 39.45 45.10 January February March April May JuneJanuary February July March August September April October November May December JuneJanuary TotalYear February Oct YTD July March August September April October November May December June TotalYear Oct YTD July August September October November December TotalYear Oct YTD Avg Avg Avg 2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011 Tract - Southfield/Northwest, All Properties, starting in 2005 ADR ($) ADR ($) RevPAR Occupancy (%) Occupancy

14. Southfield Hotel/Hospitality Analysis Gibbs Planning Group, Inc. 4 January 2012

814,954 1,349,132 60,307,275 Exhibit A (Con't): Data by Measure Exhibit 72,089 70,741 80,576 80,596 85,809 91,232 92,731 95,367 83,368 85,400 75,477 67,806 985,019 837,910 77,09277,50278,242 73,50381,109 82,33659,135 73,362 87,56761,930 73,183 87,63069,615 62,328 86,723 90,610 61,823 85,012 84,333 68,652 68,218 82,561 90,992 71,810 90,611 94,482 77,073 70,065 93,512 94,866 72,828 92,165 96,326 73,167 69,708 99,974 97,339 76,810 97,597 96,556 82,996 78,732 99,275 96,564 104,654 83,543 97,523 105,400 87,587 75,030 111,984 85,792 87,950 90,474 86,357 72,798 91,912 90,070 82,703 90,903 93,231 88,255 71,309 96,663 80,850 78,920 83,236 84,423 76,605 72,123 82,410 69,669 81,268 72,223 87,736 68,904 66,070 72,747 65,144 74,869 1,042,845 1,036,809 1,062,781 60,299 1,034,681 887,386 67,518 891,300 907,624 899,868 825,815 907,181 699,446 764,794 January February March April May JuneJanuary February July March August September April October November May December JuneJanuary TotalYear February Oct YTD July March August September April October November May December June TotalYear Oct YTD July August September October November December TotalYear Oct YTD 174,375168,795 157,500167,586 152,460160,890 166,253 151,368153,946 168,795 145,320144,181 160,890 167,586 139,048144,181 163,350 160,890 166,253 130,228159,136 162,180 153,946 168,795 130,228 155,700 160,890 144,181 167,586 143,736 148,980 163,350 135,997 160,890 166,253 139,530 155,700 156,807 153,946 168,795 131,610 155,700 166,253 144,181 160,890 151,749 148,980 168,795 135,997 160,890 139,530 160,890 156,807 153,946 160,890 131,610 160,890 144,181 161,460 150,823 144,181 135,997 155,700 166,253 144,181 155,850 151,980 166,842 135,966 139,530 160,890 160,890 154,451 139,530 153,946 161,460 131,580 144,181 155,700 168,795 148,667 144,181 148,980 166,842 135,966 139,530 160,890 153,180 1,975,495 139,530 153,946 1,979,739 144,181 1,645,810 1,926,966 151,015 144,181 1,651,437 1,870,022 1,610,376 1,764,395 156,473 1,567,096 1,697,615 1,480,684 1,413,904 1,869,039 1,531,206 6,691,7307,573,504 5,886,0457,184,665 6,872,383 9,548,0697,816,340 7,336,878 7,237,882 6,355,8404,898,064 7,086,813 7,500,809 7,659,338 6,545,0904,482,139 8,024,965 7,339,690 7,984,373 7,304,259 4,899,7715,139,886 8,101,651 8,003,890 8,193,876 8,168,274 5,348,372 4,461,7366,255,190 7,995,683 7,945,366 8,616,921 6,171,040 8,155,993 5,204,163 4,854,299 8,367,884 8,167,191 8,594,106 5,296,532 5,424,045 5,634,529 6,078,693 7,314,196 8,937,894 9,143,233 6,332,438 5,260,747 5,552,898 6,465,847 7,421,750 5,793,298 6,125,270 6,669,368 6,252,175 ######## 7,639,215 8,206,043 6,194,033 5,699,382 6,626,790 7,005,510 7,887,072 7,275,468 6,872,438 6,665,174 6,694,225 7,474,911 8,542,588 5,473,084 6,547,564 7,436,517 7,026,429 6,948,699 5,825,435 5,879,264 7,229,557 7,874,725 5,290,245 5,646,589 6,321,996 5,647,469 5,881,911 86,011,111 6,323,037 6,841,686 4,776,042 6,525,250 91,100,380 5,282,466 73,313,238 5,364,870 6,959,283 93,137,070 4,286,164 78,906,227 91,148,906 4,723,530 79,584,476 6,072,990 64,391,945 80,218,971 65,860,571 5,347,870 55,329,739 55,772,171 81,941,664 69,061,728 Avg Avg Avg 2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011 Tract - Southfield/Northwest, All Properties, starting in 2005 Supply Demand ($) Revenue

Southfield Hotel/Hospitality Analysis 15. Gibbs Planning Group, Inc 4 January 2012

1.5 1.0 0.1 11.7 13.3 5.3 4.4 0.7 2.5 6.5 7.2 5.75.00.8 7.3 6.3 3.4 3.6 5.6 0.3 1.9 0.5 1.7 -0.3 -1.0 -1.5 -0.8 -6.9-2.3 -7.8 -1.6 14.2 14.5 -15.4 -17.7 -11.5 -11.3 -25.1 -27.0 9.5 2.1 1.6 6.1 -1.9 -0.3 -3.5 -6.4 -1.2 -6.7 -1.6 -2.6 2.6 1.3 -5.1 -1.3 -1.1 3.1 3.4 1.2 0.5 2.8 1.1 2.9 7.41.7 11.2 1.7 12.3 10.2 3.33.9 6.3 3.5 -9.2 -15.0 -18.4 -12.7 -2.2-7.8 -3.3-6.1 -12.6 -4.8 -8.3 -11.6 -1.5-2.9 -2.7-1.6 -1.3 -7.6 -1.8 -0.9 -2.6 1.2 1.8 6.8 14.3 5.4 6.2 -2.3 -0.5 8.9 7.9 13.4 10.4 13.6 11.6 -1.8-0.3 -2.8 -2.4 -1.8 -0.5 4.2 3.2 2.04.8 1.4 9.31.7 3.3 1.0 14.2 1.6 17.5 3.8 2.3 0.0 1.7 1.3 2.2 1.3 7.5 -1.1 -4.9 -8.4 -1.4 16.3 4.0 6.9 5.80.9 3.4 3.7 1.86.6 3.6 4.33.9 3.0 12.9 9.8 17.5 14.7 12.3 14.5 16.1 -0.7 -1.4 -8.3 -2.7 -1.0 -1.6 -1.3 -1.7 -1.9 -1.1 0.1 -2.0 -10.3 -0.3 -1.4 -0.3 3.91.7 8.0 15.7 3.92.3 2.1 2.6 14.3 1.7 2.7 4.9 0.52.0 3.2 2.6 2.5 3.3 4.2 0.6 4.4 0.8 -6.0 -25.3 -2.2 -4.4-2.3 -33.0 -2.8 11.812.4 5.9 11.0 12.4 13.812.6 11.0 6.5 17.7 44.8 14.6 13.3 11.1 5.2 22.1 11.8 3.8 23.7 2.5 16.9 9.813.3 10.7 67.6 13.4 12.714.7 7.3 3.7 14.5 13.3 8.8 14.8 12.0 5.3 19.4 14.7 14.1 11.3 14.0 17.6 -23.8 -11.0 -16.1 -19.2 -21.0 -15.7-14.1 -25.1-12.6 -12.1 -27.5 -8.2 -8.8 -7.6 -2.6 -17.4 -12.1 -7.1-34.5 -8.7 -8.8 -9.6 -21.8 -6.5 -23.5 -16.1 -21.3 -5.1 -30.5 -12.8 -23.0 -14.7 -32.3 -10.8 -39.1 -12.3 -18.1 -18.7 -9.7 -13.4 January February March April May June JulyJanuary August February September March October November April December May TotalYear June Oct YTD JulyJanuary August February September March October November April December May TotalYear June Oct YTD July August September October November December TotalYear Oct YTD Exhibit B: Percent Change fromby Year -Measure B: Previous Detail Percent Change Exhibit Avg Avg Avg 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Tract - Southfield/Northwest, All Properties, starting in 2005 Occupancy ADR RevPAR

16. Southfield Hotel/Hospitality Analysis Gibbs Planning Group, Inc. 4 January 2012

0.4 6.6 0.8 8.1 -4.6 0.2 0.3 9.9 9.3 5.92.2 7.6 2.3 0.9 0.8 2.5 1.8 -2.6 -0.9 -2.7-3.0-5.6-3.8 -2.5 -2.7 -5.5 -4.5 -0.6 -2.2 -0.8 -2.1 -3.0 -3.2 -4.2 -2.1 -20.2 -22.3 -29.4 -31.0 0.0 5.6 -1.2 -3.6 -4.3 -6.3 -4.6 -7.4 -1.0 -3.1 -3.1 -3.2 -1.5 -4.7 0.0 7.5 10.9 0.4 0.40.0 0.4 0.0 0.0 7.0 8.0 1.5 3.2 7.4 11.2 12.3 10.2 6.4 9.5 7.6 -1.8 -2.9 -8.0 -3.6-2.4-8.2 -3.6 -4.3-5.7 -6.3 -3.6 -5.7 -4.3 -6.3 -0.3 -3.2 -3.3 -2.8 -1.5 -1.5 -3.9 -10.0 -16.4 -15.5 -10.5 -11.3 -18.7 -21.9 -16.5 1.0 0.0 1.3 2.8 1.0 5.4 6.2 6.9 17.5 6.8 14.3 -0.8 0.0 0.0 0.0 3.8 2.8 8.1 -0.3 -1.3 -3.3 3.8 1.5 6.4 2.4 -1.4 -2.4 -0.2 -0.3 12.6 8.2 7.6 5.0 9.8 -6.9 -3.4 -0.7 11.6 1.5 1.5 1.5 1.5 1.5 1.5 5.3 3.9 10.2 6.15.8 14.3 3.6 23.7 2.3 7.7 10.7 4.7 12.7 12.0 13.3 10.6 12.0 8.3 10.4 12.0 -5.7 -5.7 -5.7 -5.7 -5.7 -5.7 -4.6 -2.4 -4.6 -1.7 -2.4 -1.8 1.1 -0.2-0.8 -2.0 -10.9 -1.0 -2.1 -1.0 0.0 0.0 0.51.0 3.7 12.04.7 0.1 8.8 3.0 -3.2-0.7-4.0-4.3 -3.2 -6.3 -0.7 -4.0 -4.3 -0.7 -6.3 -4.0 -4.3 -0.7 -6.3 -4.0 -4.3 -0.7 -6.3 -4.0 -4.3 -4.7 -6.3 -4.3 -4.7 -6.3 -4.3 -6.3 -4.7 -10.4 -5.1-8.5 -33.4 -8.9 -2.7 -14.2 -3.1 -3.1 -3.3 -3.3 -3.3-0.8 -3.2 -0.6 -3.2 -1.7 -3.2 -2.9 -0.8-2.4 -0.9 -0.2 12.4 11.0 7.313.2 0.5 62.2 8.114.7 5.3 4.8 8.8 5.5 8.3 3.5 -27.1 -14.8 -19.8 -22.7 -24.4 -19.3-37.3 -28.3 -25.1 -35.0 -26.8 -24.7 -13.8 -33.5 -10.8 -26.3 -35.2 -5.2 -45.4 -24.8 -23.9 -15.4 -18.9 January February March April May June JulyJanuary August February September March October November April December May TotalYear June Oct YTD JulyJanuary August February September March October November April December May TotalYear June Oct YTD July August September October November December TotalYear Oct YTD Exhibit B (Con't): Percent Change fromby B (Con't):Year -Measure Percent Previous Detail Change Exhibit Avg Avg Avg 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Tract - Southfield/Northwest, All Properties, starting in 2005 Supply Demand Revenue

Southfield Hotel/Hospitality Analysis 17. Gibbs Planning Group, Inc 4 January 2012

0.1 0.4 0.8 6.55.7 7.2 5.9 7.3 7.6 5.35.0 4.4 2.5 3.4 1.8 0.30.50.8 1.9 1.7 3.6 0.2 0.3 2.2 0.9 -0.8 -0.6 -0.3 -1.0 -3.0-2.6-2.1 -2.7 -0.9 -2.7 -2.5 -5.6 -5.5 -15.4-11.5-25.1 -17.7 -11.3 -20.2 -27.0 -29.4 -22.3 -31.0 -1.2 -1.2 2.6 6.1 1.3 -5.1 -1.9 -4.7 -3.1 -1.1 -1.8 -2.9 -8.0 -4.6 -7.8-1.5-9.2 -12.6-2.4 -2.7 -11.6 -15.0 -4.3 -7.6 -18.4 -6.4 -4.3 -12.7 -6.7 -4.3 -11.3 -18.7 -21.9 -16.5 -10.0 -16.4 -15.5 -10.5 1.81.2 3.31.0 1.12.8 6.3 1.5 2.9 3.5 3.2 1.6 5.46.8 6.2 14.3 6.8 14.3 5.4 6.2 -2.3 -0.5-0.8 -2.2 -3.3 -8.3 -3.5 8.9 7.93.8 13.4 2.8 10.4 8.1 13.6 11.6 6.40.0 9.5 0.0 9.5 7.6 0.0 5.6 -1.8-1.8 -0.5 -2.8 -0.3 -1.3 -2.4 -0.3 2.34.8 0.0 3.86.4 1.5 -0.2 -0.3 -1.4 -2.4 1.7 1.39.8 2.2 1.3 7.5 -4.9 -6.9 -3.4 16.3 4.0 11.6 6.96.6 5.8 4.3 3.4 3.0 3.7 12.9 1.8 9.8 3.6 17.5 14.7 3.9 12.3 14.5 16.1 1.5 1.5 1.5 1.5 1.55.8 1.5 3.6 0.4 2.3 0.4 7.7 0.4 4.7 12.0 10.6 8.3 10.4 12.0 -1.4 -8.3 -2.7 -0.7 -4.6 -0.2 -2.0 -10.3 -0.3-10.9 -1.4 -1.0 -0.3 -2.1 -1.0 3.9 15.7 0.5 12.01.7 0.1 1.0 8.04.9 3.93.7 3.2 8.8 2.1 3.0 14.3 2.7 -6.0-4.4 -25.3 -33.0 -3.2 -3.2 -0.7-5.1 -0.7 -33.4 -0.7 -0.7-4.0 -0.7 -4.0 -4.7 -4.0 -4.7 -4.0 -4.7-4.3 -4.0 -3.6 -4.3 -3.6 -4.3 -3.6 -4.3 -3.6 -4.3 -4.3 -4.3 -10.4 -8.2 -6.3 -6.3 -6.3 12.616.9 44.8 67.6 5.2 3.7 3.8 2.5 13.3 7.3 13.2 62.2 5.3 -23.8-14.1-34.5 -11.0 -12.1-27.1 -21.8 -16.1-37.3 -8.8 -14.8 -23.5 -19.2 -25.1 -19.8 -2.6 -21.3 -21.0 -26.8 -12.1 -22.7 -30.5 -15.7 -24.7 -25.1 -24.4 -23.0 -8.7 -33.5 -27.5 -32.3 -19.3 -9.6 -26.3 -39.1 -28.3 -6.1 -16.1 -35.2 -18.1 -35.0 -12.8 -4.8 -45.4 -13.8 -18.7 -24.8 -14.7 -10.8 -9.7 -10.8 -23.9 -13.4 -5.2 -12.3 -15.4 -7.4 -18.9 Jan 06Jan 06 Feb Mar 06 06 Apr 06 May 06 Jun Jul 06 06 Aug 06 Sep 07Jan Oct 06 07 Feb 06 Nov 06 Dec Mar 07 07 Apr Year Total 07 May Oct YTD 07 Jun Jul 07 07 Aug 07 Sep 08Jan Oct 07 08 Feb 07 Nov 07 Dec Mar 08 08 Apr Year Total 08 May Oct YTD 08 Jun Jul 08 08 Aug 08 Sep 09Jan Oct 08 09 Feb 08 Nov 08 Dec Mar 09 09 Apr Year Total 09 May Oct YTD 09 Jun Jul 09 09 Aug 09 Sep Oct 09 09 Nov 09 Dec Year Total Oct YTD Exhibit C: Percent Change fromby Year -Year C: Previous Detail Percent Change Exhibit Occ Occ Occ Occ ADR ADR ADR ADR Supply Supply Supply Supply RevPAR RevPAR RevPAR RevPAR Demand Demand Demand Demand Revenue Revenue Revenue Revenue

Tract - Southfield/Northwest, All Properties, starting in 2005

18. Southfield Hotel/Hospitality Analysis Gibbs Planning Group, Inc. 4 January 2012

6.6 8.1 1.5 -4.6 11.7 13.3 2.3 0.8 6.39.9 5.6 9.3 -3.8 -4.5 -6.9 -7.8 14.2 14.5 0.0 0.0 0.0 0.0 0.0 6.9 17.5 7.4 11.2 12.3 10.2 -3.3 2.4 9.3 3.3 14.2 17.5 7.4 11.2 12.3 10.2 4.2 3.2 2.0 1.4 0.5 2.8 12.6 8.2 7.6 5.0 7.5 10.9 -8.4 -0.7 -1.1 3.9 5.3 3.9 10.2 6.1 14.3 23.7 10.7 12.7 13.3 12.0 0.9 -5.7 -5.7 -5.7 -5.7 -5.7 -5.7 -5.7 -5.7 -0.8 -2.0 4.7 0.0 0.0 2.0 -2.3-6.3 -2.8 -8.5 -6.3 -8.9 -6.3 -2.7 -6.3 -14.2 -6.3 -6.3 -6.3 14.7 8.8 14.8 5.3 19.4 14.7 14.1 11.3 14.0 17.6 11.8 5.9 12.4 11.012.4 17.7 11.0 13.312.414.7 13.8 22.1 11.0 8.8 23.7 6.5 7.3 10.7 14.6 8.3 0.5 12.7 11.1 13.3 11.8 8.1 12.0 9.8 4.8 13.4 5.5 14.5 3.5 7.0 8.0 -12.6 -8.2 -7.6 -17.4 -7.1 -8.8 -6.5 -5.1 -2.9 -1.3 -0.9 -1.6 Jan 10Jan 10 Feb Mar 10 10 Apr 10 May 10 Jun Jul 10 10 Aug 10 Sep 11Jan Oct 10 11 Feb 10 Nov Mar10 Dec 11 11 Apr Year Total 11 May Oct YTD 11 Jun Jul 11 11 Aug 11 Sep Oct 11 11 Nov 11 Dec Year Total Oct YTD Occ Occ ADR ADR Supply Supply RevPAR RevPAR Demand Demand Revenue Revenue Exhibit C (Con't): Percent Change fromby C (Con't):Year -Year Percent Previous Detail Change Exhibit

Tract - Southfield/Northwest, All Properties, starting in 2005

Southfield Hotel/Hospitality Analysis 19. Gibbs Planning Group, Inc 4 January 2012

46.8 46.8 46.8 1,632,843 53.252.356.450.5 53.149.6 52.756.3 56.7 49.0 53.1 50.5 53.3 56.9 57.0 47.3 53.0 51.5 53.7 57.3 56.6 47.0 52.8 52.0 54.3 57.9 56.0 52.5 52.5 54.8 58.6 55.5 52.4 53.0 55.2 55.3 53.4 72.85 73.07 73.2136.49 73.31 36.57 73.36 37.02 73.53 37.60 37.84 38.19 38.54 38.80 72.58 36.21 EXHIBIT D: Twelve MonthAverage Moving D: Twelve EXHIBIT 53.052.455.554.4 53.547.2 52.053.9 55.7 54.0 53.5 47.4 52.0 54.3 55.8 53.3 53.1 47.9 51.9 54.9 56.4 52.3 53.2 48.3 51.9 55.1 56.5 51.3 49.0 55.8 83.2987.4387.9987.12 86.0777.21 85.0972.71 88.18 86.43 86.41 76.73 85.57 72.60 87.99 85.91 86.6944.11 76.22 85.9745.85 72.65 88.1348.83 85.65 86.8747.36 46.09 74.92 86.2336.46 44.26 88.2339.18 49.08 84.79 86.73 46.63 46.21 74.44 86.52 36.39 44.50 88.40 39.41 49.07 86.69 84.07 45.75 46.03 86.65 73.77 36.52 44.65 88.49 39.86 49.69 83.34 86.82 44.82 46.21 73.32 86.93 44.77 89.16 40.03 49.86 81.60 87.06 43.50 73.01 46.15 87.22 45.26 89.06 40.64 49.84 87.51 80.57 46.03 42.42 87.15 72.84 45.63 88.88 50.14 41.13 79.42 87.76 40.86 46.09 72.75 87.31 46.32 88.45 41.62 50.83 78.72 38.61 87.87 46.13 72.70 87.64 46.86 42.03 88.09 50.44 77.97 46.24 37.87 72.60 47.34 49.78 42.50 37.15 46.06 47.83 43.11 49.12 36.86 46.02 48.33 48.74 36.50 January February March AprilJanuary May February March June April JulyJanuary August May February September October March June November December April JulyJanuary August May February September October March June November December April July August May September October June November December July August September October November December 1,969,9151,978,530 1,964,8751,920,270 1,977,4381,863,078 1,967,417 1,914,2221,754,630 1,976,229 1,856,806 1,969,8771,697,615 1,907,526 1,745,810 1,975,059 1,849,862 1,972,419 1,697,615 1,901,046 1,736,045 1,973,850 1,843,142 1,689,431 1,894,350 1,974,879 1,726,595 1,836,198 1,966,200 1,977,421 1,681,511 1,716,830 1,894,350 1,958,295 1,979,963 1,673,327 1,829,478 1,894,350 1,950,390 1,707,380 1,822,534 1,980,533 1,894,350 1,665,407 1,697,615 1,944,630 1,805,825 1,981,122 1,657,223 1,890,630 1,697,615 1,938,678 1,793,375 1,649,008 1,981,692 1,883,686 1,697,615 1,932,918 1,783,610 1,641,058 1,979,739 1,876,966 1,697,615 1,926,966 1,774,160 1,870,022 1,697,615 1,764,395 1,697,615 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Tract - Southfield/Northwest, All Properties, starting in 2005 Occupancy (%) Occupancy ($) ADR ($) RevPAR Supply

20. Southfield Hotel/Hospitality Analysis Gibbs Planning Group, Inc. 4 January 2012

825,815 62,841,688 63,836,531 64,242,711 64,834,377 65,423,205 65,860,571 62,440,953 Low value is boxed and italicized. and boxed is value Low EXHIBIT D (Con't): Twelve MonthAverage D (Con't): Moving Twelve EXHIBIT January February March AprilJanuary May February March June April July August May September October June November December July August September October November December 828,610914,866 828,105 921,695 831,697 926,958 834,460 927,297 841,562 933,483 846,373 937,527 857,135 942,209 874,407 945,370 882,018 950,873 891,163 957,341 899,962 907,181 1,043,2551,037,549 1,052,0881,065,648 1,028,5751,012,707 1,052,151 1,065,469 1,027,668 1,001,852 1,045,874 1,063,758 1,025,896 1,049,364 1,071,808 985,058 1,024,926 1,070,461 1,050,824 964,512 1,028,574 1,050,041 1,068,084 1,031,293 1,051,000 942,055 1,073,463 1,039,170 1,049,407 1,080,047 923,190 1,044,725 1,046,759 1,070,838 1,053,133 893,566 1,040,128 1,055,025 1,058,938 854,380 1,036,809 1,042,284 1,062,781 1,034,681 842,986 834,259 830,660 86,892,88590,711,541 90,554,90993,768,745 87,519,312 90,920,40888,230,630 93,957,995 87,940,768 90,670,34363,976,020 86,585,311 93,602,916 88,193,645 91,153,90766,518,318 63,537,985 84,629,424 94,457,102 88,377,546 66,910,881 91,132,832 63,393,776 82,606,588 94,444,821 91,026,864 88,990,577 67,341,247 62,519,268 79,874,640 89,362,778 91,248,689 94,422,006 67,305,462 62,648,121 94,992,016 90,338,820 77,612,972 68,004,739 91,356,243 74,468,376 96,296,029 91,604,100 91,123,113 69,720,512 68,506,259 91,778,629 95,365,454 91,279,226 68,977,400 93,771,565 67,918,128 92,460,622 69,309,604 91,100,380 66,259,674 92,189,477 93,137,070 69,752,336 65,388,247 91,148,906 70,395,675 64,391,945 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 High value is boxed. is value High Tract - Southfield/Northwest, All Properties, starting in 2005 Demand ($) Revenue

Southfield Hotel/Hospitality Analysis 21. Gibbs Planning Group, Inc 4 January 2012

EXHIBIT E: Day of Week Analysis Tract - Southfield/Northwest, All Properties, starting in 2005 Occupancy (%) Sun Mon Tue Wed Thu Fri Sat Total Month Nov - 10 38.5 51.7 57.6 59.2 55.6 55.5 56.9 53.7 Dec - 10 37.4 46.7 50.9 51.2 43.4 48.8 48.7 46.8 Jan - 11 35.4 49.0 58.2 57.8 48.3 44.8 47.7 48.3 Feb - 11 40.3 53.4 60.7 58.9 50.2 48.7 56.8 52.7 Mar - 11 40.5 56.7 64.6 63.0 53.1 54.7 61.4 56.7 Apr - 11 39.5 55.8 62.8 62.4 52.5 55.7 59.3 55.6 May - 11 46.3 56.1 66.3 68.6 58.6 63.9 71.0 61.0 Jun - 11 49.8 66.9 76.1 72.1 61.7 67.1 71.8 66.6 Jul - 11 54.1 62.6 71.0 71.3 67.2 66.9 73.8 66.5 Aug - 11 53.0 66.3 73.7 72.2 65.0 71.0 77.1 68.6 Sep - 11 51.8 59.9 69.7 70.5 60.3 64.2 73.6 64.2 Oct - 11 46.5 64.3 74.8 73.1 62.9 61.4 71.5 64.5 Total Year 44.4 57.3 65.4 64.8 56.3 58.4 63.8 58.6

Three Year Occupancy (%) Sun Mon Tue Wed Thu Fri Sat Total Year Nov 08 - Oct 09 34.8 47.1 53.4 53.4 44.7 45.4 48.5 46.8 Nov 09 - Oct 10 39.3 51.4 58.3 58.2 51.5 52.7 56.4 52.5 Nov 10 - Oct 11 44.4 57.3 65.4 64.8 56.3 58.4 63.8 58.6 Total 3 Yr 39.4 51.8 58.9 58.6 50.6 52.0 56.0 52.5

ADR Sun Mon Tue Wed Thu Fri Sat Total Month Nov - 10 61.44 74.54 78.01 77.23 72.41 65.22 67.01 71.66 Dec - 10 63.01 70.28 73.41 74.10 69.40 70.71 65.62 69.96 Jan - 11 66.12 76.68 82.28 80.13 73.72 66.61 67.79 73.83 Feb - 11 63.09 74.61 77.12 76.36 72.09 62.66 65.46 70.71 Mar - 11 62.67 75.52 79.96 80.02 72.72 65.49 67.09 73.11 Apr - 11 63.73 75.24 79.41 79.68 70.14 66.47 67.18 71.90 May - 11 68.76 76.99 80.99 80.79 74.48 70.38 72.33 75.33 Jun - 11 69.48 78.89 80.63 79.70 73.63 71.80 72.39 75.66 Jul - 11 67.37 76.19 79.12 78.70 73.77 70.22 71.54 73.67 Aug - 11 68.29 77.51 80.02 78.15 73.48 72.01 73.81 75.37 Sep - 11 68.58 76.07 80.65 80.70 74.01 70.84 72.64 74.88 Oct - 11 65.21 76.71 82.12 81.22 75.51 67.96 69.76 74.37 Total Year 65.98 75.97 79.63 78.95 73.04 68.68 69.69 73.53

Three Year ADR Sun Mon Tue Wed Thu Fri Sat Total Year Nov 08 - Oct 0972.48 83.47 85.71 85.53 78.95 72.10 74.21 79.42 Nov 09 - Oct 1065.32 75.65 79.33 78.69 72.72 66.57 68.28 72.75 Nov 10 - Oct 1165.98 75.97 79.63 78.95 73.04 68.68 69.69 73.53 Total 3 Yr 67.75 78.23 81.45 80.95 74.75 69.01 70.60 75.11

RevPAR Sun Mon Tue Wed Thu Fri Sat Total Month Nov - 10 23.68 38.57 44.94 45.70 40.29 36.17 38.16 38.45 Dec - 10 23.54 32.82 37.37 37.97 30.09 34.49 31.98 32.76 Jan - 11 23.42 37.60 47.88 46.32 35.58 29.83 32.32 35.65 Feb - 11 25.44 39.86 46.80 44.99 36.19 30.51 37.17 37.28 Mar - 11 25.36 42.82 51.68 50.39 38.60 35.85 41.22 41.43 Apr - 11 25.19 42.00 49.89 49.75 36.83 37.05 39.85 39.97 May - 11 31.84 43.20 53.68 55.42 43.68 44.98 51.32 45.97 Jun - 11 34.58 52.81 61.38 57.50 45.46 48.16 52.01 50.35 Jul - 11 36.42 47.70 56.17 56.14 49.58 46.99 52.77 49.01 Aug - 11 36.22 51.42 58.97 56.42 47.74 51.11 56.94 51.68 Sep - 11 35.53 45.55 56.20 56.91 44.62 45.51 53.48 48.05 Oct - 11 30.33 49.30 61.42 59.40 47.47 41.75 49.89 47.99 Total Year 29.28 43.55 52.05 51.19 41.10 40.12 44.49 43.11

Three Year RevPAR Sun Mon Tue Wed Thu Fri Sat Total Year Nov 08 - Oct 0925.23 39.32 45.79 45.69 35.31 32.73 36.00 37.15 Nov 09 - Oct 1025.67 38.88 46.24 45.78 37.41 35.08 38.52 38.19 Nov 10 - Oct 1129.28 43.55 52.05 51.19 41.10 40.12 44.49 43.11 Total 3 Yr 26.66 40.54 47.94 47.48 37.86 35.87 39.52 39.40

22. Southfield Hotel/Hospitality Analysis Gibbs Planning Group, Inc. 4 January 2012

72.7 72.7 72.7 72.7 75.5 78.6 78.6 78.6 76.5 76.5 83.1 83.1 83.1 81.4 81.5 83.7 84.4 84.4 81.3 82.5 83.7 84.4 84.4 84.4 89.2 86.6 86.6 81.0 81.0 85.9 85.9 83.4 83.4 83.4 83.4 83.4 83.3 89.2 Participants % Rooms STAR STAR Rooms % 5,190 5,190 5,190 5,190 5,406 5,190 5,190 5,190 5,190 5,190 5,406 5,406 5,406 5,382 5,406 5,382 5,445 5,445 5,445 5,382 5,382 5,445 5,445 5,445 5,445 5,625 5,625 5,363 5,363 5,363 5,363 5,363 5,363 5,363 5,363 5,363 5,445 5,445 Rooms Census Census Census & Sample& Census % 41 41 41 41 42 41 41 41 41 41 42 42 42 42 42 42 43 43 43 42 42 43 43 43 43 43 43 42 42 42 42 42 42 42 42 42 43 43 Props Census Census Revenue 6,691,730 5,886,045 6,872,383 7,336,878 7,500,809 8,024,965 8,101,651 7,945,366 7,314,196 7,639,215 6,872,438 5,825,435 73,313,238 Demand 73,503 87,567 90,610 90,992 83,236 72,223 77,092 94,866 97,339 96,564 87,950 90,903 887,386 1,042,845 86,011,111 Supply 157,500 166,253 160,890 166,253 160,890 168,795 174,375 160,890 166,253 166,253 160,890 166,253 1,645,810 1,975,495 EXHIBIT F: Classic Data F: Classic EXHIBIT % Chg% Year This Chg % Year This Chg % Year This Chg % RevPar This This Year 37.37 41.34 45.60 45.12 42.72 34.51 38.38 49.88 48.73 47.79 45.46 45.95 44.55 43.54 % Chg % ADR This This Year 80.97 80.08 78.48 82.43 82.57 80.66 86.80 84.59 83.23 84.04 82.62 82.28 83.16 82.48 % Chg % Occupancy 50.4 3.9 89.43 3.2 45.04 7.3 145,320 -4.0 73,183 -0.2 6,545,090 3.0 50.4 8.0 96.37 4.9 48.58 13.3 160,890 -4.0 81,109 3.7 7,816,340 8.8 45.2 9.5 86.92 6.1 39.30 16.1 160,890 -3.6 72,747 5.6 6,323,037 12.0 52.9 11.6 87.73 2.6 46.43 14.5 155,700 -3.6 82,410 7.6 7,229,557 10.4 64.261.7 8.9 7.9 86.1960.1 84.29 3.7 13.6 1.8 55.34 88.37 52.01 12.9 -1.1 155,700 9.8 53.10 160,890 -4.7 12.3 -4.7 160,890 99,974 99,275 -3.6 3.8 96,663 8,616,921 2.8 8,367,884 7.7 9.5 4.7 8,542,588 8.3 65.559.0 13.4 10.4 86.75 89.28 3.6 3.9 56.83 52.70 17.5 14.7 160,890 155,700 -4.7 -3.6 105,400 91,912 8.1 9,143,233 6.4 8,206,043 12.0 10.6 55.8 -0.3 87.35 3.4 48.74 3.0 167,586 -0.7 93,512 -1.0 8,168,274 2.3 50.9 -1.4 88.90 5.8 45.26 4.3 162,180 -0.7 82,561 -2.1 7,339,690 3.6 51.7 -0.3 88.32 6.9 45.70 6.6 167,586 -0.7 86,723 -1.0 7,659,338 5.8 48.5 -10.3 86.64 -25.3 41.99 -33.0 151,368 -0.7 73,362 -10.9 6,355,840 -33.4 46.7 1.7 91.83 -6.0 42.87 -4.4 167,586 -0.7 78,242 1.0 7,184,665 -5.1 41.3 -3.5 81.95 1.6 33.84 -1.9 166,842 -1.2 68,904 -4.6 5,646,589 -3.1 47.4 -8.3 85.47 3.5 40.55 -5.1 161,460 0.4 76,605 -8.0 6,547,564 -4.7 57.2 -2.352.9 82.81 -3.3 -0.5 89.37 47.37 -2.8 6.3 168,795 47.27 1.5 2.9 166,842 96,556 0.4 -0.8 7,995,683 88,255 -1.3 -2.9 7,887,072 3.2 57.853.5 -0.5 -2.2 83.75 85.94 1.8 3.3 48.39 45.97 1.2 1.1 168,795 161,460 1.5 0.4 97,523 86,357 1.0 -1.8 8,167,191 7,421,750 2.8 1.5 59.0 0.0 83.09 -1.8 49.00 -1.8 163,350 1.5 96,326 1.5 8,003,890 -0.3 56.0 2.3 84.51 2.5 47.30 4.8 168,795 1.5 94,482 3.8 7,984,373 6.4 51.6 -8.3 84.03 3.8 43.38 -4.9 163,350 1.5 84,333 -6.9 7,086,813 -3.4 51.9 -1.4 82.60 5.2 42.88 3.7 168,795 1.5 87,630 0.1 7,237,882 5.3 56.3 46.7 52.7 54.7 51.7 42.8 54.0 15.7 115.96 44.8 62.63 67.6 152,460 -3.2 82,336 12.0 9,548,069 62.2 44.2 59.0 58.5 54.7 58.1 54.7 45.9 3.9 97.72 12.6 44.87 16.9 168,795 -3.2 77,502 0.5 7,573,504 13.2 This This Year Jul 07 Jul 06 Jul 05 Oct 07 Oct Oct 06 Oct Oct 05 Oct Apr 07 Apr Apr 06 Apr Apr 05 Apr Jan 08 Jun Jun 07 Jan 07 Jun Jun 06 Jan 05 Jun 05 Jan 06 Feb 08 Dec 07 Nov 07 Nov Mar 07 Feb 07 Dec 06 Nov 06 Nov Mar 06 Feb 05 Mar 05 05 Nov Dec 05 Feb 06 Aug Aug 07 Sep 07 Aug Aug 06 Sep 06 Aug Aug 05 Sep 05 May 07 May 06 May 05 Date Total 2007Total 55.2 5.3 87.64 -0.3 48.33 5.0 1,926,966 -2.7 1,062,781 2.5 93,137,070 2.2 Total 2006Total 52.4 -0.8 87.87 6.5 46.02 5.7 1,979,739 0.2 1,036,809 -0.6 91,100,380 5.9 Total 2005Total 52.8 Oct 2007 YTD 56.4 4.4 87.68 -1.0 49.42 3.4 1,610,376 -2.5 907,624 1.8 79,584,476 0.9 Oct 2006 YTD 54.0 0.1 88.53 7.2 47.78 7.3 1,651,437 0.3 891,300 0.4 78,906,227 7.6 Oct 2005 YTD 53.9 Tract - Southfield/Northwest, All Properties, starting in 2005 in starting Properties, All Southfield/Northwest, - Tract

Southfield Hotel/Hospitality Analysis 23. Gibbs Planning Group, Inc 4 January 2012

% Rooms % STAR Participants Census Rooms Census & Sample % Census & Sample 39 4,651 87.7 4141 5,19041 5,190 5,19040 72.7 4040 72.7 5,06640 74.9 4,966 4,966 4,96640 80.5 40 82.2 40 82.2 4,96640 82.2 4,96640 4,96640 4,96640 82.2 4,96639 82.2 4,96639 82.2 4,96639 82.2 4,65139 82.2 4,65139 82.2 4,651 82.2 4,651 87.7 4,651 87.7 39 87.7 39 87.7 39 87.7 4,651 4,65139 4,651 87.7 4,651 87.7 85.4 87.7 Census Props -8.5 -4.6 -0.2 -0.3 -2.1 -8.9 -2.7 -3.3 -29.4 -11.3 -18.7 -21.9 -16.5 -37.3 -25.1 -26.8 -24.7 -33.5 -26.3 -35.2 -45.4 -24.8 -23.9 -15.4 -18.9 -31.0 -14.2 Revenue 7,304,259 7,275,468 6,948,699 5,647,469 5,282,466 4,898,064 4,899,771 5,348,372 6,171,040 5,424,045 6,332,438 5,793,298 5,699,382 5,473,084 5,290,245 4,776,042 4,286,164 4,461,736 6,545,090 3.08,155,993 8,594,106 41 5,190 72.7 64,391,945 80,218,971 0.8 55,329,739 91,148,906 -2.0 -0.9 -5.2 -7.4 -0.8 -0.2 -1.4 -2.4 -2.6 -20.2 -10.0 -16.4 -15.5 -10.5 -27.1 -14.8 -19.8 -22.7 -24.4 -19.3 -28.3 -35.0 -13.8 -10.8 -22.3 Demand 85,012 82,703 80,850 69,669 65,144 59,135 62,328 68,218 70,065 69,708 78,732 75,030 72,798 71,309 72,123 66,070 60,299 61,93061,823 4.772,828 4,482,139 3.9 5,296,532 81,10973,183 3.790,611 7,816,34092,165 9.8 8.8 8,193,876 11.6 41 41 5,190 5,190 72.7 72.7 71,810 5.376,81083,543 5,204,163 10.285,792 5,552,898 6.1 14.3 6,125,270 2.4 6,194,033 6.9 39 39 4,651 4,651 87.7 85.5 825,815 699,446 907,181 9.9 65,860,571 2.3 899,868 764,794 9.3 55,772,171 0.8 1,034,681 -5.6 -4.0 -2.4 -4.3 -4.3 -4.3 -4.3 -4.3 -4.3 -4.3 -4.3 -4.3 -4.3 -8.2 -6.3 -6.3 -6.3 -5.5 -6.3 -6.3 -6.3 -3.8 -4.0 -4.0 -4.0 -4.0 -2.7 -3.0 -6.3 -6.3 -6.3 -6.3 -4.5 -10.4 Supply 160,890 151,980 153,946 148,980 153,946 153,946 139,048 153,946 148,980 153,946 148,980 153,946 144,181 139,530 144,181 139,530 144,181 144,181 130,228 139,530 155,700 0.0 97,597 1,764,395 1,480,684 Exhibit F (Con't): Classic F (Con't): Exhibit -0.7 -9.2 -9.7 -2.3 -2.8 -8.4 -0.3 -25.1 -15.0 -18.4 -12.7 -34.5 -21.8 -23.5 -21.3 -30.5 -23.0 -32.3 -39.1 -18.1 -18.7 -13.4 -27.0 RevPar 36.50 38.80 6.3 1,697,615 45.40 47.87 45.14 37.91 34.31 31.82 35.24 34.74 41.42 35.23 42.51 37.63 39.53 39.23 36.69 34.23 29.73 37.37 31.09 34.26 36.0937.96 3.938.5143.90 144,181 9.342.96 3.346.43 14.2 144,181 42.14 17.5 139,530 40.80 144,181 7.438.45 144,181 11.232.76 12.3 139,530 0.039.45 144,181 10.2 139,530 0.0 0.0 5.6 144,181 90,070 0.0 1,413,904 23.7 78,920 0.0 81,268 6,694,225 10.7 74,869 12.7 67,518 17.5 5,879,264 13.3 5,881,911 12.0 5,364,870 7.4 11.2 4,723,530 12.3 39 10.2 39 39 4,651 39 39 4,651 4,651 4,651 86.4 4,651 86.4 86.4 86.4 86.4 -6.9 -2.7 -1.5 -2.7 -7.6 -6.7 -8.8 -2.6 -8.7 -9.6 -8.2 -7.6 -7.1 -8.8 -6.5 -5.1 -2.9 -1.3 -0.9 -1.6 -7.8 -11.5 -14.1 -12.1 -12.1 -16.1 -12.8 -14.7 -10.8 -12.3 -11.3 -12.6 -17.4 77.97 88.06 2.287.97 55.20 85.95 81.06 81.09 82.83 78.61 78.40 88.08 77.81 80.43 77.21 78.29 76.75 73.35 71.08 79.11 -2.4 -7.8 -6.4 -6.1 -4.8 -1.2 -15.4 -12.6 -11.6 -23.8 -11.0 -16.1 -19.2 -21.0 -15.7 -25.1 -27.5 -17.7 46.8 55.3 0.3 88.09 0.5 48.74 0.8 1,870,022 53.4 14.2 72.60 50.450.4 8.052.8 3.958.2 96.37 2.157.3 14.3 89.4362.7 4.9 85.92 2.765.0 90.43 3.269.6 48.58 88.49 5.454.4 1.7 45.04 6.2 13.352.5 1.3 85.4046.8 52.63 7.3 160,890 93.2942.3 16.3 50.69 1.3 145,320 57.4 7.5 155,700 4.0 55.55 1.938.4 64.93 160,890 44.8 6.8 89.15 14.344.3 160,89047.0 1.7 160,89045.3 0.052.8 0.0 51.1948.7 104,65450.5 111,984 3.651.1 1,567,096 5.4 6.250.0 8,937,894 10,447,24647.441.8 14.3 6.8 1.347.2 72.29 43.0 4147.5 41 11.849.8 5.952.2 72.37 12.4 5,19053.3 5,190 11.0 72.17 59.9 72.47 17.759.5 72.73 13.362.5 72.29 22.1 78.6 78.6 56.6 73.32 23.756.4 72.20 10.753.7 74.32 12.746.8 74.50 13.354.1 72.38 12.0 71.66 14.5 69.96 72.92 Occupancy ADR ThisYear Chg % ThisYear Chg % ThisYear Chg % ThisYear Chg % ThisYear Chg % ThisYear Chg % Jul 08 Jul 09 Jul 10 Oct 08 Oct 09 Oct 10 Apr 08 Apr 09 Apr 10 Apr Jan 08 Jan 09 Jan 10 Jan Feb 08 Jun 08 Feb 09 Jun 09 Feb 10 Jun 10 Mar 08 Mar 09 Mar 10 Sep 08 Sep 08 Dec 09 Sep 09 Dec 10 Sep 10 Dec Nov 08 Nov 09 Nov 10 Aug 08 Aug 09 Aug 10 Aug May 08 May 09 May 10 Date Total 2009 Total 2008 Total 2010 Oct 2008 YTD Oct 2009 YTD Oct 2010 YTD Tract - Southfield/Northwest, All Properties, starting in 2005

24. Southfield Hotel/Hospitality Analysis Gibbs Planning Group, Inc. 4 January 2012

% Rooms % STAR Participants Census Rooms Census & Sample % Census & Sample 38 4,387 91.6 Census Props -0.7 Revenue Demand 77,073 7.382,99687,587 5,634,529 8.190,474 4.8 8.393,231 6,252,175 5.584,423 6,626,790 12.6 3.587,736 6,665,174 7.0 8.2 7,026,429 38 8.0 7.6 6,321,996 5.0 38 6,525,250 7.5 4,387 10.9 38 38 4,387 38 4,387 38 38 91.6 4,387 4,386 91.6 4,386 4,386 91.6 91.6 89.2 89.2 89.2 73,167 0.5 5,260,747 814,954 6.6 60,307,275 8.1 -5.7 -5.7 -5.7 -5.7 -5.7 -5.7 -5.7 -4.6 -5.7 Supply Exhibit F (Con't): Classic F (Con't): Exhibit RevPar 37.28 8.839.97 130,228 5.3 0.0 131,610 68,652 11.0 4,854,299 8.8 39 4,651 86.4 -2.0 -1.1 64.5 14.5 74.37 2.8 47.99 17.6 135,966 48.352.7 12.456.7 11.055.6 73.83 13.861.0 70.71 6.566.6 2.0 73.11 14.666.5 11.1 71.90 68.6 35.65 0.9 75.33 11.864.2 75.66 14.7 9.8 41.43 4.2 73.67 13.460.4 3.2 144,181 14.8 75.37 45.97 2.0 74.88 11.7 0.0 50.35 135,997 19.4 1.4 49.01 0.5 74.00 14.7 135,997 69,615 14.1 51.68 48.05 1.5 131,610 12.4 11.3 135,997 14.0 5,139,886 44.70 135,966 131,580 14.7 13.3 1,349,132 39 4,651 86.4 Occupancy ADR ThisYear Chg % ThisYear Chg % ThisYear Chg % ThisYear Chg % ThisYear Chg % ThisYear Chg % Jul 11 Oct 11 Apr 11 Apr Jan 11 Jan Feb 11 Jun 11 Mar 11 Sep 11 Sep Aug 11 Aug May 11 Date Oct 2011 YTD Tract - Southfield/Northwest, All Properties, starting in 2005

Southfield Hotel/Hospitality Analysis 25. Gibbs Planning Group, Inc 4 January 2012

EXHIBIT G: Glossary

ADR (Average Daily Rate) Open Date Room revenue divided by rooms sold, displayed as the Date the property opened as a lodging establishment. average rental rate for a single room. Percent Change Affiliation Date Amount of growth, up, flat, or down from the same period Date the property affiliated with current chain/flag last year (month, ytd, three months, twelve months). Calculated as ((TY-LY)/LY) * "100". Census (Properties and Rooms) The number of properties and rooms that exist within the Revenue (Room Revenue) selected property set or segment. Total room revenue generated from the sale or rental of rooms. Change in Rooms Indicator of whether or not an individual hotel has added RevPAR (Revenue Per Available Room) or removed rooms from their inventory. Room revenue divided by rooms available

Exchange Rate Sample % (Rooms) The factor used to convert revenue from U.S. Dollars to The % of rooms from which STR receives data. the local currency. Calculated as (Sample Rooms/Census Rooms) * "100". The exchange rate data is obtained from Oanda.com. Any aggregated number in the report (YTD, Running 3 Standard Historical Trend month, Running 12 month) uses the exchange rate of Data on selected properties or segments starting in each relative month when calculating the data. 2005.

Extended Historical Trend STR Code Data on selected properties or segments starting in Smith Travel Research's proprietary numbering system. 2000. Each hotel in the lodging census has a unique STR code. Demand (Rooms Sold) The number of rooms sold (excludes complimentary Supply (Rooms Available) rooms). The number of rooms times the number of days in the period. Full Historical Trend Data on selected properties or segments starting in Twelve Month Moving Average 1987. The value of any given month is computed by taking the value of that month and the values of the eleven Occupancy preceding months, adding them together and dividing by Rooms sold divided by rooms available. Occupancy is twelve. always displayed as a percentage of rooms occupied. Year to Date Average or sum of values starting January 1 of the given year.

Exhibits A-G Source and Copyright: Smith Travel Research

26. Southfield Hotel/Hospitality Analysis Gibbs Planning Group, Inc. 4 January 2012

1 1 84 84

- - 1 1 93 93 Pipeline Projects Pipeline Projects

- - In Constr. FinalPlanning Planning Planning Pre In Constr. FinalPlanning Planning Planning Pre

1 3 4 4 6 38 10 10 150 852 626 495 696 516 4,386 1,051 Oct-11 Oct-11

1 3 4 3 7 39 10 11 150 852 626 390 802 779 4,651 1,052 Independent Oct-10 Oct-10

1 3 4 4 8 9 39 10 150 852 626 495 864 612 4,651 1,052 Economy Oct-09 Oct-09

1 3 4 4 8 40 10 10 Pre Planning Pre 150 852 626 495 864 927 4,966 1,052 Exhibit H: Supply Summary H: Supply Exhibit Midscale Historic Supply Historic Supply Oct-08 Oct-08 Planning

1 4 4 9 3 8 41 12 150 576 941 351 864 1,046 5,190 1,262 Final Planning Final Upper Midscale Upper Oct-07 Oct-07

1 4 4 9 3 8 In Construction In 42 13 Current Room Supply Room Current Supply and Pipeline 150 576 351 864 1,046 5,382 1,241 1,154 Upscale Existing Oct-06 Oct-06

Upper Upscale Upper Luxury Luxury Total Luxury Upscale Upper Upscale Total Upper Upscale Upper Upscale Midscale Upper Midscale Upper Midscale Midscale Economy Independent Economy Independent 0 800 600 400 200 1,200 1,000 Location: Southfield/Northwest Tract Southfield/Northwest Location: Hotels Rooms

Southfield Hotel/Hospitality Analysis 27. Gibbs Planning Group, Inc 4 January 2012

- - - - - 84 84 Pre-

Planning ------Planning - - - - - 93 93 Pipeline Projects Final

Rooms In ------Opened Constr. Planning Recently 81 90 84 150 239 348 626 246 235 516 246 150 225 388 852 194 259 137 238 144 105 495 134 106 221 696

Total Existing SupplyExisting *

- - - - - 1 1 1,051 Pre-

Planning - Planning ------

1 1 Final Pipeline Projects

Hotels In EXHIBIT I: PipelineI: by Brand Summary EXHIBIT ------Opened Constr. Planning Recently 1 1 1 1 1 2 1 1 1 3 1 4 1 3 1 4 1 2 6

10 10 Total Existing SupplyExisting *

1 1 1 2 2 2 2

UpperMidscale UpperUpscale Upscale Midscale Economy Independents Luxury Comfort Inn Comfort Embassy Suites Courtyard Suites Candlewood Extended Stay America Independent Location: Southfield/Northwest Tract Location: Southfield/Northwest Luxury Total Marriott Inn Hilton Garden Suites Comfort Inn Fairfield Inn Hampton Suites byHawthorn Wyndham Homestead Westin Upper Upscale Total SuitesSpringhill Staybridge Suites Upscale Total Inn Holiday Express Inn Holiday Upper Midscale Total Quality Inn Midscale Total Motel 6 Inn Roof Red TotalEconomy Preferred

28. Southfield Hotel/Hospitality Analysis Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT J: Changes to Existing Supply by Brand Location: Southfield/Northwest Tract

12 Month Change Oct-10 Add Removed Net Oct-11 Existing New Room Converted Rooms Gain/ Existing Converted Closed Supply Build In Additions Out Removed Loss Supply Luxury Preferred 150 - 150 Luxury Total 150 ------150

Upper Upscale Embassy Suites 239 - 239 Hilton - Marriott 225 - 225 Westin 388 - 388 Upper Upscale Total 852 ------852

Upscale Courtyard 348 - 348 Hilton Garden Inn 194 - 194 Residence Inn - Springhill Suites 84 - 84 Upscale Total 626 ------626

Upper Midscale Comfort Inn 246 - 246 Comfort Suites 81 - 81 Fairfield Inn 90 - 90 Hampton Inn 260 (1) (1) 259 Holiday Inn 137 - 137 Holiday Inn Express - Upper Midscale Total 814 - - -- - (1) (1) 813

Midscale Best Western - Candlewood Suites 246 - 246 Hawthorn Suites by Wyndham 144 - 144 Quality Inn 105 105 105 Midscale Total 390 - 105 -- -- 105 495

Economy Days Inn - Extended Stay America 235 - 235 Homestead 134 - 134 Knights Inn 106 (106) (106) Motel 6 106 - 106 Red Roof Inn 221 - 221 Economy Total 802 - - - - (106) - (106) 696

Independents Independent 779 106 (264) (105) (263) 516

Southfield Hotel/Hospitality Analysis 29. Gibbs Planning Group, Inc 4 January 2012

EXHIBIT J (Con't): Changes to Existing Supply by Brand Location: Southfield/Northwest Tract

60 Month Change Oct-06 Add Removed Net Oct-11 Existing New Room Converted Rooms Gain/ Existing Closed Supply Build Converted In Additions Out Removed Loss Supply Luxury Preferred 150 - 150 Luxury Total 150 ------150

Upper Upscale Embassy Suites 239 - 239 Hilton 194 (194) (194) Marriott 225 - 225 Westin 388 - 388 Upper Upscale Total 1,046 - - - - (194) - (194) 852

Upscale Courtyard 348 - 348 Hilton Garden Inn 194 194 194 Residence Inn 144 (144) (144) Springhill Suites 84 - 84 Upscale Total 576 - 194 - - (144) - 50 626

Upper Midscale Comfort Inn 135 111 111 246 Comfort Suites 81 - 81 Fairfield Inn 90 - 90 Hampton Inn 236 24 (1) 23 259 Holiday Inn 552 (415) (415) 137 Holiday Inn Express 91 91 Upper Midscale Total 1,094 - 202 24 - (415) (1) (190) 813

Midscale Best Western 105 (105) (105) Candlewood Suites 246 - 246 Hawthorn Suites by Wyndham 144 144 144 Quality Inn 105 105 105 Midscale Total 351 - 249 - - (105) - 144 495

Economy Days Inn 62 (62) (62) Extended Stay America 235 - 235 Homestead 134 - 134 Knights Inn 106 (106) (106) Motel 6 106 - 106 Red Roof Inn 221 - 221 Economy Total 864 - - - - (168) - (168) 696

Independents Independent 1,154 882 (919) (501) (100) (638) 516

30. Southfield Hotel/Hospitality Analysis Gibbs Planning Group, Inc. 4 January 2012

Phone Code Calling Country Country 11 442-9800 (248) 1 624-8100 (248) 477-7800 (248) 1 945-0010 (248) 1 Address 8 Mile Rd & Telegraph Rd, Southfield, MI 48034 MI Southfield, Telegraph Rd, & Rd 8 Mile Farmington 48334-3861 MI Hills, Blvd, Stansbury 27777 Farmington 48335-2879 MI Ave, Hills, Grand River 37529 Clarkston, Rd, 48348 MI Sashabaw 6874 169 Loop Rd, Commerce Township, MI 48390-3946 Date Dec-9348034 MI Southfield, Telegraph Rd, 28225 Closed Jul-64 Nov-99 48302-0163 MI Bloomfield Telegraph Rd, Hills, S 1801 1 Jul-8648034-6235MI Southfield, Hwy, Northwestern 27027 1Jul-91 358-1222 (248) Waterford, Rd, Highland 7076 48327-1500 MI 1 666-8555 (248) Oct-0248075-1068MI Southfield, Hwy, Northwestern 25100 1 350-2400 (248) Oct-8948034-6235MI Southfield, Hwy, Northwestern 27033 1 356-7400 (248) Jan-0348076-2202MI Southfield, Hwy, Northwestern 24977 1 357-9990 (248) Jun-8748076-4100MI Southfield, Park Central Blvd, 26700 1 352-8900 (248) Jun-86 W 30715 48334-3815 Farmington MI Rd, Hills, Mile 12 1 471-9220 (248) Jun-67 Woodward 35270 Birmingham, Ave, 48009-0935 MI 1 642-6200 (248) Jun-0348034-1824MI Southfield, Hwy, Northwestern 28555 1 352-6100 (248) Jun-00 Tech Hills Dr, Farmington 48331-5705 37555 MI Hills, 1 324-0540 (248) Mar-8648034-4763MI Southfield, Hwy, Northwestern 27500 1 356-5500 (248) Mar-8748034-5501MI Franklin Southfield, Rd, 28100 1 350-2000 (248) Mar-98 Sep-8748075-1141MI Dr, Southfield, Town Center 1500 1Sep-88 827-4000 (248) 48034-6170MI American 26000 Dr, Southfield, 1 357-1100 (248) Nov-87 Dec-88 Birmingham, St, Townsend 100 48009-6068 MI 1 642-7900 (248) Dec-9748076-3727 MI Dr, Southfield, 1 Corporate Dec-05 May-8648033-5315MI Southfield, Telegraph Rd, 26111 1 368-6130 (248) May-86 W 31525 48334-4403 Farmington MI Rd, Hills, Mile 12 1 553-0000 (248) May-02 Lake Waterford, Pontiac Rd, 4350 48328-1264 MI 1 674-3434 (248) Open Date (Anticipated) 600 391 625 800 750 500 294 4,512 2,800 1,300 1,100 Space Meeting

SF Largest SF Largest 600 750 500 294 3,400 1,250 1,900 1,612 1,100 SF Space Meeting

1,430 3,318 1,296 93 81 91 84 90 83 64 84 239 6,297 3,072 111 3,830 3,100 150 8,758 4,920 201 4,000 3,034 121 388 194 154 137 144 143 225 147 135 105 247 105 125

15,000 4,372 1,111 5,344 2,858 Rooms EXHIBIT K : Data by Property EXHIBIT K by : Data Embassy Suites Embassy Comfort Inn Preferred Marriott Westin Courtyard Courtyard Inn Garden Hilton Suites Springhill Suites Staybridge Comfort Inn Comfort Suites Hampton Inn Express Inn Holiday Comfort Inn Wyndham by Suites Hawthorn Inn Quality Ramada Brand Embassy Suites Detroit Southfield Detroit Suites Embassy Comfort Waterford Inn Southfield Detroit Suites Candlewood Suites Candlewood Preferred Townsend Hotel Southfield Detroit Marriott Westin Detroit Southfield Farmington Detroit Hills Courtyard Southfield Detroit Courtyard Southfield Detroit Inn Garden Hilton Southfield Detroit Suites Springhill Southfield Detroit Suites Staybridge Comfort Farmington Inn Hills Comfort Southfield Detroit Suites Farmington Detroit Hills Suites & Inn Fairfield Inn Fairfield Hampton Southfield Detroit Inn Road Mile 14 @ Hampton Novi Detroit Inn Novi Farmington Suites Hill Inn Holiday Hampton Inn Waterford Express Inn Suites & Holiday Detroit Southfield Express Inn Suites & Holiday Inn Holiday Express Inn Holiday Express Inn Birmingham Detroit Holiday Comfort Clarkston Suites & Inn Express Inn Holiday Farmington Detroit Hills Suites Candlewood Suites Candlewood Wyndham Southfield by Detroit Suites Hawthorn Southfield Inn Quality Bloomfield Hills Inn Inn Quality Closed RamadaClosed Southfield Inn Quality 1446 7767 27206 23596 26160 19568 48295 23160 42506 35998 22479 53878 21592 44735 46601 13741 39943 23633 26873 26182 21712 35214 21242 23975 STR ID Hotel Name Pre-Planning Open Open Open Open Open Open Open Open Open Open Open Open Final Planning Open Open Open Open Open Open Open Open Open Open Closed Closed Upper Upscale Upper Midscale Upper Midscale Upscale Luxury

Southfield Hotel/Hospitality Analysis 31. Gibbs Planning Group, Inc 4 January 2012

Phone Code Calling Country Country 1 473-4000 (248) 1 471-0590 (248) 11 474-8590 (248) 477-3200 (248) 11 338-4061 (248) 1 474-1324 (248) 623-0300 (248) 1 Address 27775 Stansbury Blvd, Farmington 48334-3861 MI Hills, Blvd, Stansbury 27775 Farmington 48335-1514 MI Ave, Hills, Grand River 38300 Farmington 48336-5920 MI Ave, Hills, Grand River 28051 Farmington 48335-2879 MI Ave, Hills, Grand River 37527 Farmington 48336-4316 MI Ave, Hills, Grand River 30691 Farmington 48336-5964 MI Ave, Hills, Grand River 28000 22305 Telegraph Rd, Southfield, MI 48033-4208MI Southfield, Telegraph Rd, 22305 1 Waterford, Hwy, Dixie 2201 48328-1809 MI 356-4264 (248) White Rd, Highland 8230 Lake, 48386-2013MI 1 666-1900 (248) Date Jun-99 Aug-9448075-1098MI Southfield, Hwy, Northwestern 25100 1 Dec-8648033-2495MI Southfield, Telegraph Rd, 26555 1 Dec-8648033-2495MI Southfield, Telegraph Rd, 26555 1 Closed Jul-9948034-1802MI Southfield, Hwy, Northwestern 28500 1 213-4500 (248) Jul-71 Mar-05 W 38123 48335-2803 Farmington MI Rd, Hills, Mile 10 1 Jun-6748033-4120MI Southfield, Rd, Telegraph 23300 1 358-1800 (248) Jun-58 Sep-08 Woodward 34952 Birmingham, Ave, 48009-0930 MI 1 Jun-85 Jun-59 Jan-88 Jun-68 Waterford, Telegraph Rd, S 120 48328-3864 MI Jan-54 1 Clarkston, 48346-3393 MI Hwy, Dixie 5835 682-5100 (248) Jun-84 Sep-0648033-4217MI Southfield, Telegraph Rd, 21360 1 Jun-97 Jun-8348034-4702MI Southfield, Hwy, Northwestern 27650 1 353-6777 (248) Jun-72 Jun-07 W 17017 48075-4501MI Southfield, Rd, Mile 9 Jun-74 Mar-1148075-4875MI Dr,Hudson Southfield, J L 16400 1 1 Mar-79 48335-1621 Farmington MI Ct, Hills, Sinacola 24300 1 478-8640 (248) Nov-66 Aug-0948033-2495MI Southfield, Telegraph Rd, 26555 1 Dec-8648034-4702MI Southfield, Hwy, Northwestern 27660 1 353-7200 (248) Nov-0248034-6610MI American 26250 Dr, Southfield, 1 355-2115 (248) Open Date (Anticipated) 200 150 3,572 9,600 9,000 Space Meeting

SF Largest SF Largest 200 150 4,876 SF 20,000 16,650 Space Meeting

3,680

- - 60 62 50 20 65 24 41 26 17 63 113 110 500 500 134 113 315 103 124 122 106 108 106 262 216 264

7,740 Rooms EXHIBIT K (Con't) : Data by Property EXHIBIT K by : (Con't) Data Homestead RoofRed Inn Brand Extended Stay America Farmington Hills Stay Extended America Southfield Detroit Stay Extended America Stay Extended Homestead Southfield Detroit America Stay Extended NWDetroit 6 Motel Farmington Hills Southfield Roof Detroit Red Inn FarmingtonRoof Detroit Red Hills Inn 6 Motel Roof Red Inn Inn Garden Marvin`s Bahama Inn Rest Motel Ee Ez Farmington Inn Hills Southfield Hotel Victory A McGuires Inn Motor Motel Highlander Park Motel Lakeside Motel Pontiac Inn Mill Olde Resort Hotel Holiday Closed PremierClosed Hotel Inn Evergreen Closed Center Conv & Hotel Southfield - Independent Closed Inn The Barclay - Independent Closed Conf & Center Hotel Plaza - Independent Closed BotsfordClosed Inn Motel Bird Blue Closed Southfield Closed Southfield Closed 9039 6674 1449 1450 4385 9811 46483 38696 10461 13790 19395 26714 26887 26889 26898 46625 49350 55582 13740 13782 13792 26875 58744 59156 34893 10265 STR ID Hotel Name Open Open Open Open Open Open Open Open Open Open Open Open Open Open Open Open Closed Closed Closed Closed Closed Closed Closed Closed Closed Closed Independents Economy

32. Southfield Hotel/Hospitality Analysis Gibbs Planning Group, Inc. 4 January 2012

EXHIBIT L: Construction Pipeline Location: Southfield/Northwest Tract

Project ID: 10538428 Location Owner/Developer Final Planning Chain: Staybridge Suites Intercontinental Hotels & Resorts Projected opening: Rooms: 93 Staybridge Suites Detroit Southfield Atlanta, GA 30346-2118 Market: Detroit, MI 8 Mile Rd & Telegraph Rd Phone: 770-604-2000 Sub-Market: Southfield/Northwest Southfield, MI 48034 Fax: 770-604-5403 Notes: 1) Franchisee seeking financing - Site adaption plans complete - GC to be negotiated - Construction possible 2012 pending financing 2) 93 rooms

Project ID: RTHR258692 Location Owner/Developer Pre-Planning Chain: Comfort Inn Projected opening: Rooms: 84 Comfort Inn & Suites Clarkston Market: Detroit, MI 6874 Sashabaw Rd Sub-Market: Southfield/Northwest Clarkston, MI 48348

EXHIBIT M: Glossary

Affiliation Date Pre-Planning Date the property affiliated with current chain/flag No architect has been selected

Census (Properties and Rooms) Recently Opened The number of properties and rooms that exist Opened in the last 12 months (universe)

Change in Rooms Room Additions Indicator of whether or not an individual hotel has Rooms that were added to an existing property had added or deleted rooms.

Converted In / Converted Out Rooms Removed Rooms that converted or reflagged into or out of a Rooms that were removed from an existing property brand or chain scale

Existing Supply Sample % (Rooms) All hotels opened and operating, including those The % of rooms STR receives data from. Calculated as opened in the last 12 months (Sample Rooms/Census Rooms) * "100".

Final Planning STR Code The project will go out for bids, or construction will start within 4 months Smith Travel Research's proprietary numbering system. Each hotel in the lodging census has a unique STR code.

In Construction Supply (Rooms Available) Ground has been broken or the owner is finalizing The number of rooms times the number of days in the bids on the prime (general) contract period.

New Build Twelve Month Moving Average New hotel inventory (does not include additions to The value of any given month is computed by taking the existing properties) value of that month and the values of the eleven preceding months, adding them together and dividing by twelve. Open Date Date the property opened Year to date Average or sum of values starting Jan. 1 of the given year. Planning An architect or engineer has been selected for the project and plans are underway. Initial approvals have usually been granted

Exhibits H-M Source and Copyright: Smith Travel Research / McGraw-Hill Construction Dodge Southfield Hotel/Hospitality Analysis 33. Gibbs Planning Group, Inc 4 January 2012

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