Oklahoma City

2010 Mid-Year Retail Market Summary

TABLE OF CONTENTS

Retail Market Summary 1-2

Sales Summary 3

Planned Development 3

North Submarket 4-5

Northwest Submarket 6-7

South Submarket 8-9

Edmond Submarket 10-11

West-Central Submarket 12-13

Moore / Norman Submarket 14-15

Eastern OK County Submarket 16-17

ICSC Article Back Cover

The information contained herein has been obtained from reasonably reliable sources. Price Edwards & Company makes no guarantee, either express or implied, as to the accuracy of such information.All data contained herein is subject to errors, omissions and changes. Reproduction in whole or in part, without prior written consent is prohibited.

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OKC Total Retail Market Vacancy2010 Mid-Year

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OKC Total Retail Market Inventory2010 Mid-Year

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OKC Total Retail Market Absorption2010 Mid-Year

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1

The Economy & the Retail Market

Here is the progression: 2008 was a shock, 2009 was depressing, 2010 is a year of hope; and, perhaps, 2011 will be a year of action. Virtually everyone – owners, retailers, brokers (okay, maybe not bankers) – feels better about the economy and where the retail market is today. No doubt, part of this hope is fueled by the belief that 2009 saw the bottom of the recession and the retail market. We’ve pulled back from the precipice and adjusted to the realities of the marketplace. Nationally there has been some good news: GDP growth is up slightly, unemployment is down slightly, corporate earnings have generally been pretty good. Consumers are gradually starting to think good thoughts (see the ICSC consumer survey results on the back cover). National retailers have gotten lean and generated better operating numbers by reducing inventory, downsizing staffs, closing unproductive stores.

National and regional retailers are dusting off expansion plans and beginning to look forward. This is confirmed by the significant increase in interest we’ve seen from the retailers we represent as well as the activity at properties we lease. Most of the interest is cautious and in preliminary stages at this point, but it’s a good sign retailers are talking and beginning to look for space. Our sense is that if retailers begin looking now, it will be for deals in 2011 and 2012 although a few may get done this year.

Our hope is tempered by a lingering sluggishness in the general economy. Despite the positive economic trends, the amount of national debt, state government funding problems, stubbornly high unemployment, and

the continued shake-up of large parts of our economy – health care, environmental regulation, financial regulation – continues to create uncertainty. As we’ve discussed in prior reports, uncertainty acts as a drag on consumer spending. Consequently, we see a period over the next 18 months of good news and progress intermixed with setbacks. Two steps forward and one step back if you will. It just won’t feel like we’ve made great strides but at the end of 2011 we’ll look back and see that the market improved markedly and that we are poised for significant growth.

In this interim period, let’s review a few trends taking place in the retail market. Restaurants and discounters have been the most active retailers over the past year; expect this trend to continue. Many second tier retailers are realizing that they can, because of vacancies and lower rates, acquire locations that they could never have had access to in a strong market. This window is closing and these retailers will need to act. Large box vacancies being taken off the market are generally leased at rates 30 to 50 percent lower than the previous tenant and to tenants that are a lower quality credit. Additionally, most national and regional tenants are not exercising renewal options which contain increases but are negotiating new deals to stay at existing or reduced rates. This window is closing as well, but slowly. As a result, 2011 may be the worst year yet for owners given the cumulative effects of the closures over the past two years, lower current lease rates and the hard bargains tenants are driving on renewals. It takes a couple of years for the full effects of a downturn to be felt by owners.

In addition to the sluggish economy making retailers cautious about expansion plans, most have cut inventories and staffs over the past two years. Gearing up will take some time. Many retailers have also changed their ideal store size – Staples, Walmart, Old Navy, Bed, Bath & Beyond among others have reduced their footprint.

Oklahoma City2010 Mid-Year Retail Market Summary

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Existing deals are being cut with owners to reduce current spaces. Overall, this will create new vacancies, and in some cases, owners will get back odd-sized or difficult to lease space. New space requirements will be less.

Constrained capital markets make it harder for owners to fund new deals or the tenant improvements for downsizing tenants. Lack of capital also limits retailers’ ability to fund their expansions both in terms of real estate and inventory. As a result, owners with deep pockets and retailers with strong balance sheets will be in a favorable position.

Survey Summary

Note: Heritage Park Mall has been closed as a retail mall and we do not anticipate it re-opening as retail. Consequently, we are taking the Mall out of our survey and

re-classifying the still open Sears store as a freestanding building. Crossroads Mall, which is 75% vacant and for sale, remains in the survey for now.

This survey evaluates the occupancy of 230 retail centers (in excess of 25,000 s.f.) containing approximately 28.2 million square feet. In addition, we will be looking at the overall market, including freestanding properties that are not part of a shopping center. We have surveyed 235 freestanding buildings containing in excess of 12.3 million square feet; at mid-year, approximately 4% of this space was vacant. With these two types of properties combined, we have about 40.5 million square feet of space available for retail use (excluding strip centers with less than 25,000 s.f.).

Market vacancy equaled 14.0% at mid-year. For comparison purposes, adding

back in the Heritage Park vacancy puts the market vacancy at 14.8%, the same as year-end. If you take both Heritage Park Mall and Crossroads Mall out of the survey, the market vacancy stands at 10.9 percent, unchanged from year-end.

Clearly there has been some activity in the market, but mostly tenants moving or upgrading locations. And, any space taken by new tenants to the market or expansions has been roughly equaled by closures or newly built space added to inventory. There continues to be a significant number of smaller strip centers in the market (under 25,000 s.f. in size). We would estimate there are easily 3 million square feet of these properties in the market. Many of these centers are struggling in the current recessionary market.

OKC Retail Market TotalsGLA SF Vacant SF Vacant %

28,205,766 3,953,589 14.02%

Classen Curve - OKC

Town Center - Midwest City

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Sales Summ

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

The sales market is still sputtering. In May, the Whittaker Foods anchored May Ten Trade Center sold for $1.2 million (41,325 s.f.); otherwise, there have been no other sales of over 25,000 s.f. A lack of financing and a continuing gap between the expectations of buyers and sellers are keeping any transactions at bay.

We often get asked about capitalization rates; with no sales, any discussion of cap rates is somewhat academic. Nonetheless, we believe that current rates would most likely be between 9 percent and 11 percent depending upon asset quality and occupancy. Existing property values would then be 25 to 30 percent lower than at the height of the market in 2007. Most owners have seen only modest declines in operating income and have, to this point, been unwilling to accept offers that reflect such a decline. There are a number of buyers are in the market, but they are generally looking for acquisitions based on real numbers at the higher cap rates.

The lack of available capital, which has been a problem, may get worse before it gets better. Regulators are hammering banks about their bad loans and their exposure to real estate in particular. And, the financial regulation now before Congress would raise bank capital requirements and reduce their lending concentrations. Securitized loans remain a problem around the country, by most counts, approximately 8 percent are delinquent and the rate is expected to rise to 12 percent by year-end.

For the next year, we see a modest increase in transactions on opposite ends of the spectrum: sales of distressed properties and a few high-end projects as institutional owners re-align portfolios. But, until capital markets thaw and the expectation gap closes somewhat, transactional volume will remain at historically low levels. As to new development, joint ventures with life companies and other institutional owners may be one of the only initial options for developers as these types of investors can provide the level of equity now demanded by lenders.

Sales Summary

As noted in previous reports, the continuing national recession combined with constricted capital markets has shut down virtually all new development. However, a few projects are either underway or about to break ground:

• Crest is building a new 80,000 s.f. store at SW 104th and May in Oklahoma City with 16,000 s.f. of small shop space along 104th street. The Crest store is expected to open in the third quarter.

• Whole Foods announced that they will open a 35,000 s.f. store on Classen & Grand in 2011. Chesapeake Energy worked hard to attract the upscale grocery to their site which is a coup for Oklahoma City retail.

• Target has purchased land at Fritts Farm to build a new store along 149th street; construction is expected to start in the upcoming weeks. This will be one of only 10 new Target stores opened in the country this year.

• The Horizon Outlet Mall along I-40 on the old AT&T land is reportedly over 75% pre-leased and still on track though financing difficulties have delayed the project. It is still expected to break ground yet this year.

We anticipate all of these projects being successful. Crest will help meet the grocery demand in an underserved south market. Whole Foods is the first upscale grocer to our market whose arrival is highly anticipated. The new Target store will serve the growing south Oklahoma City and Moore markets that now either have to drive to Norman or go to 44th and Western. And, the Horizon Outlet Mall will bring a number of retailers to our market that are not currently here. It’s no coincidence that these types of projects will be the first out of the ground as we begin to see retail improvement, proven retailers in good locations meeting a specific demand.

Planned Development

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2010 Mid-Year Oklahoma City Retail Market SummaryNorth Submarket

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Survey Summary

The Memorial Corridor lies at the heart of this submarket, contains nearly 3 million square feet and is arguably Oklahoma City’s most desirable retail location. All the major national retailers that are in our market have locations here. Quail Springs Mall is a solid anchor; its owner, General Growth is expected to emerge from bankruptcy by year-end. The Belle Isle area with Oklahoma’s best performing Mall, Penn Square, highlights the south end of the submarket. With a predominance of national retailers, the submarket as a whole has a few holes from closures but has remained relatively strong. The vacancies for the area continued to increase, reaching 8.9 percent at mid-year compared to a year-end vacancy rate of 7.8 percent and 5.5 at year-end 2009.

Classen Curve

Outlook

The increase was generally across the board in neighborhood centers, suggesting that local tenants are hurting as the recession drags on. We also moved Classen Curve and Highland Park Center to the survey after listing them as under construction last year. Overall, this submarket is probably reflective of the market as a whole: a number of vacant big box spaces that has been vacant for some time with few desirable replacement options and a growing concern for small tenants the longer the economy wanders sideways.

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2010 Mid-Year Oklahoma City Retail Market SummaryNorth Submarket

North

Center Class Year Built Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenant(s)50 Penn Place C 1973/85/00 CBRE/Oklahoma 141,075 43,073 30.53% $12.00 $0.00 Bank of OklahomaNW 50th St & N Pennsylvania Ave Inman/Graham6900 Place D 1981/91/92 Levy Beffort 49,502 19,543 39.48% $8.00 $10.50 Ted's Cafe6900 N May Ave Jim Rose BlockbusterBelle Isle Station B 2000 Price Edwards & Co. 433,333 42,979 9.92% $18.00 $23.00 Wal-Mart Super CenterNW Expressway & N Classen Blvd Susan Brinkley, Laci Jackson, Karleen Krywucki, Ev Ernst Old NavyBritton Plaza Shopping Center E Gerald Gamble Co. 27,340 5,050 18.47% $8.00 $8.00 Johnnies' Charcoal Broiler2648 W Britton Rd Gerald GambleBritton Square D 1983 Coury Properties 27,326 8,066 29.52% $10.50 $0.00 Beauty Alliance9415 N May Ave Gourmet Yarn CompanyCamelot Square C 1984 Blanton Property Co. 107,799 3,895 3.61% $0.00 $0.00 Cox CommunicationsNW 122nd St & N Pennsylvania Ave Jeff BoldingCasady Square C 1953/83/95 Price Edwards & Co. 159,396 31,620 19.84% $7.00 $12.00 CVS PharmacyW Britton Rd & N Pennsylvania Ave Laci Jackson, Susan Brinkley, Ev Ernst Walmart Neighbor MktCentennial Plaza B 1993 CBRE/Oklahoma 233,794 2,450 1.05% $10.00 $14.00 Best BuyNW 58th St & N May Ave Mark Inman Home DepotCharter At May D 1963/88/96 The Boettcher Companies 99,757 1,400 1.40% $11.00 $6.50 Luby's Cafeteria9494 N May Ave Fred Boettcher Mill CreekClassen Curve C 2008 Blanton Properties 72,400 38,000 52.49% $18.00 $22.00 105 DegreesNW Grand Blvd & N Classen Blvd Balliet'sColonial Plaza C Sperry Van Ness 122,000 0 0% $0.00 $0.00 Homeland9225 N May Ave Tim Strange CatoColonnade D 1984 Brady's Properties 78,000 1,300 1.67% $9.00 $0.00 Party Bazaar9600 N May Ave Ali Ghaniabadi Boca BocaCountry Club Corner D 1959/96 JAH Realty, LP 53,477 28,672 53.62% $11.00 $0.00 Half Price Books6410 N May Ave Jeff Norman, Ethan Slavin Hollywood VideoCountry Club Village D 1970/92/03 NAI Sullivan Group 38,436 5,700 14.83% $12.00 $12.00 Fitness Together2800 W Country Club Dr David Harnack Edward Jones, Heritage TrustCross Rock Plaza E 2001 Dan Ward Companies 25,060 1,375 5.49% $18.00 $20.00 ME/CU Credit Union3521-3561 W Memoral Rd Chris BruelFenwick Plaza D 2009 Lease Space OKC 35,304 26,301 74.50% $13.00 $15.00 16524 N Pennsylvania Ave Gretchen BybeeFrench Market Mall C 1985 CBRE/Oklahoma 244,742 6,134 2.51% $8.00 $18.00 Bed Bath & Beyond2850 NW 63rd St Mark Inman StaplesHighland Park Retail Center D 2009 Steve Walters 26,369 13,000 49.30% $17.00 $0.00 Louie'sW 189th St & N Western Ave Steve Walters Lapels Dry CleanersLakehurst Plaza D 32,637 7,500 22.98% $12.00 $0.00 8025 N May Ave Jason LittleLakeside Shops Shopping Center D 1950/99/07 Pippin Properties 67,000 13,699 20.45% $15.00 $12.00 Firestone7500 N May Ave Phil Pippin Freddie Frozen CustardLakewood Shopping Center D The Pilchner Group 55,247 2,500 4.53% $8.50 $0.00 Mazzio's6901 N May Ave Gaby Villarreal Cokesbury BookstoreMayfair Place D 1978 Price Edwards & Co. 95,000 10,838 11.41% $10.00 $0.00 Akin's Health Foods2900 NW 63rd St Karleen Krywucki PetsMart, Big LotsMemorial Square C CBRE/Oklahoma 225,000 37,631 16.72% $8.00 $18.00 Super TargetW Memorial Rd & N Pennsylvania Ave Inman, Graham PF ChangsMidland Center C 1961 Price Edwards & Co. 54,272 3,503 6.45% $0.00 $0.00 Conn'sNW Expressway Susan Brinkley, Ev Ernst, Laci Jackson Panera BreadNichols Hills Plaza C 1963 Chesapeake Energy 130,000 3,122 2.40% $12.00 $16.00 Crescent Market6501 Avondale Dr Steve Barwick StarbucksNorth Penn Plaza D 1970/71 Steve Hetherington 32,000 0 0% $0.00 $0.00 Koslow's5601 N Pennsylvania Ave Steve Hetherington Commercial Federal BankNorthpark Mall C 1971/81 Morris Enterprises 200,000 40,509 20.25% $0.00 $0.00 Shogun Steak House12100 N May Ave Kevyn Colburn B.C. ClarkPenn Square Mall A 1960/88 Simon Property 1,100,000 5,000 0.45% $0.00 $0.00 JC Penney1901 NW Expressway Simon Property Macy'sPenn-Hefner Plaza D 1973/77 Haydel Associates 69,392 0 0% $12.00 $14.00 Buy For Less2121 W Hefner Rd Aimee Dial Parrish Beauty WorldQuail Plaza C 1965/89/91 Morris Enterprises 144,335 30,000 20.78% $10.00 $15.00 USA Baby10950 N May Ave Kevyn Colburn Goodyear TireQuail Springs Mall A 1980/98/99 General Growth Mgmt.,Inc. 1,124,482 16,550 1.47% $0.00 $0.00 Macy'sW Memorial Rd & N Pennsylvania Ave Kelly Waswo JC PenneyQuail Springs MarketPlace B Centro Properties Group 450,000 6,962 1.55% $0.00 $0.00 Ultimate ElectronicsW Memorial Rd & N Pennsylvania Ave Marcia Minton Lowe'sQuail Springs Village E 1983 JAH Realty, L.P. 26,500 5,600 21.13% $16.00 $20.00 RadioShack13801 N Pennsylvania Ave Ethan Slavin Pier 1 ImportsQuail Village D 2007 Grubb Ellis/Levy Beffort 49,845 13,822 27.73% $18.50 $20.00 Tan & Tone14101 N May Ave Jim Rose Edwards JonesShoppes at North Pointe D 2002 Mazaheri, Investments 37,400 945 2.53% $15.00 $0.00 Chase BankW Memorial Rd & N May Ave Fred Mazaheri Jimmy's EggShops at the Veranda B 2006 Grubb Ellis/Levy Beffort 30,650 29,712 96.94% $19.00 $0.00 150th St & N Western Ave Michael AlmarazSportsmen''s Warhouse Center E 2005 Hawkins Companies 66,662 44,360 66.54% $9.00 $18.00 AT&T Flagship Store2301 W Memorial Rd Ryan ManteuffelSpring Creek North D 1981 Price Edwards & Co. 89,006 2,888 3.24% $11.00 $0.00 CVS Pharmacy12200 N May Ave Laci Jackson, Susan Brinkley, Ev Ernst HomelandThe Plaza at Quail Springs E 2005 JAH Realty, L.P. 104,001 0 0% $14.00 $0.00 Fabrics Unlimited2221 NW 138th St Ethan Slavin Dollar TreeTown & Country Village D 1982/92 Brady's Properties 43,500 0 0% $12.00 $0.00 Cocina De Mino12335 N May Ave Ali Ghaniabadi SubwayVillage at Quail Springs C 2004 Inland Companies 100,404 0 0% $0.00 $0.00 Gordmans2201 W Memorial Rd Laurie Long Best BuyVillage Park* E 1972 CBRE/Oklahoma 25,000 13,200 52.80% $6.00 $10.00 Hi Performance Scuba10405 N May Ave Alaina McGlothlin, Ryan Storer Audio DimensionVillage Park* North E Coldwell Banker 16,400 0 0% $0.00 $0.00 10405 N May Ave Lee BollingerVillage Plaza (Waverly Crossing) D 1964/73/89 Legacy Properties 49,133 2,000 4.07% $9.50 $0.00 Westlake Hardware1505 W Britton Rd Sheryl Redwine Dollar GeneralWilshire Village E 1986 Dr. Scott Samara,M.D. 27,000 0 0% $11.00 $12.00 Dodson Art GalleryW Wilshire Blvd & N Western Ave Dana Makeup Bar

North Totals 6,419,976 568,899 8.86%

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2010 Mid-Year Oklahoma City Retail Market SummaryNorthwest Submarket

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Silver Springs Pointe

Survey Summary

The northwest market saw an increase in vacancy to 14.7 percent from 12.9 percent in December. The vacancy is spread across the market with a few of the larger projects seeing some junior anchor space becoming vacant. There has been no development in this submarket. The market is dominated by neighborhood centers along Northwest Highway. Eight of the 30 centers surveyed have over 30,000 square feet of vacancy. Clearly, some tenants have struggled in this market, but restaurant sales in much of the submarket have been quite strong. Age, accumulated deferred maintenance and outdated design hurt several centers in this market.

Outlook

Given the performance of restaurants in the submarket, a number of restaurants are actively looking for space. And, there are deals pending on a couple of the larger vacancies. This submarket could very well see an improvement in occupancy over the next several months. No new development is in the works to our knowledge. As previously noted, once the retail market rebounds, the focus of retailers could very well be along the Memorial corridor to the north, creating issues for the Northwest Highway corridor.

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2010 Mid-Year Oklahoma City Retail Market SummaryNorthwest Submarket

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Center Class Year Built Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenant(s)122nd & MacArthur D 1985 Grubb Ellis/Levy Beffort 42,200 0 0% $7.00 $10.00 Wall'sNW 122nd St & N MacArthur Blvd John Cohlmia Pizza Hut DeliveryBrixton Square C 1985 GBR Properties, Inc. 89,607 8,234 9.19% $10.00 $13.00 Clear Sight7101 NW Expressway Bob Parker Party GalaxyCircuit City Center D CBRE/Oklahoma 49,339 31,864 64.58% $8.50 $0.00 Century 21Lake Hefner Pkwy & NW Expy Inman, Graham Casual MaleCornerstone Plaza D 58/78/2003 NAI Sullivan Group 141,049 1,250 0.89% $10.00 $5.00 Jackson HewittNW 39th St & N MacArthur Blvd David Hartnack Ocean DentalCouncil Crossing C 1986/92/03 NAI Sullivan Group 142,197 34,932 24.57% $10.00 $12.00 Buy For Less8101 NW Expressway David Harnack Chelino'sCourtyard Plaza D 1984 Levy Beffort 38,998 9,400 24.10% $12.00 $14.00 Blockbuster6401 NW Expressway Jim Rose At The BeachLakeshore Shopping Center C 2002 The Pilcher Group 139,447 28,735 20.61% $8.50 $8.00 Academy Sporting Goods4200 NW Expressway Gaby Villarreal Jason's DeliLakeshore Shops D 1998 Charles Shadid 33,140 3,300 9.96% $5.00 $8.00 Bangkok Restaurant7930 N MacArthur Blvd Charles Shadid Al's BicyclesMacArthur Shops E 1983 CBRE/Oklahoma 25,630 4,269 16.66% $12.00 $14.00 SRO Dance StudioW Britton Rd & N MacArthur Blvd Ryan StorerMarket Place OKC C 1985 Grubb Ellis/Levy Beffort 178,854 42,831 23.95% $12.00 $10.00 5501 NW Expressway Louis AlmarazMarket Plaza C 1981/82 Levy Beffort 151,439 37,096 24.50% $8.00 $11.00 Tuesday Morning7001 NW Expressway Jim Rose Westlake HardwareMayFair Village C 1948/90 Price Edwards & Co. 174,911 43,612 24.93% $14.00 $10.00 Michael'sNW 50th St & N May Ave Susan Brinkley, Ev Ernst, Laci Jackson SteinmartNewport E 1972 Charles Shadid 25,740 4,200 16.32% $5.00 $6.00 Seven-Eleven9120 N MacArthur Blvd Charles Shadid Sunshine LaundryOklahoma City Market Square C 1983/00 Price Edwards & Co. 143,579 17,198 11.98% $7.00 $9.00 Family Leisure8400 NW Expressway Susan Brinkley, Laci Jackson, Ev Ernst Dress BarnPeppertree Square D 1984 Grubb Ellis/Levy Beffort 77,938 19,651 25.21% $8.00 $8.00 Tan & Tone America6444 NW Expressway Jim RosePortland Plaza C 1994 JAH Realty, L.P. 103,312 21,310 20.63% $12.00 $7.00 Locke SupplyNW 39th St & N Portland Ave Ethan SlavinQuailbrook Center D 1987 Levy Beffort 90,389 1,958 2.17% $12.50 $0.00 Panera Bread4401 W Memorial Rd John Cohlmia, Louis Almaraz Mercy Health SystemRock Center E 1982 Grubb & Ellis Levy Beffort 29,000 0 0% $10.50 $0.00 Avis6710 NW Expressway John Colimia H&R Block, AvisRockwell Crossing E CBRE/Oklahoma 30,200 7,125 23.59% $14.00 $12.00 First Class Learning12100 N Rockwell Ave Stuart Graham, Brian DonahueRockwell Northwest C 1984/99 JAH Realty, L.P. 163,000 16,353 10.03% $10.00 $14.00 Hobby Lobby7000 NW Expressway Ethan Slavin Chick-Fil-ARockwell Plaza B Medallion Real Estate 414,507 46,966 11.33% $12.00 $18.00 Target8375 N Rockwell Ave Chris Bruehl Ross Dress for Less, PetsmartSilver Springs B 2000 CBRE/Oklahoma 700,000 38,004 5.43% $8.00 $15.00 Wal-Mart7600 NW Expressway Stuart Graham Home DepotSpringbrook D 1968 First Commercial Mgmt, Inc. 50,000 2,832 5.66% $7.50 $0.00 All American Fitness6207 NW Expressway John W. Meek, RPASpringdale C 61/86/93/99 Grace Commercial 126,000 22,575 17.92% $7.00 $5.00 Rent WayNW 50th St & N Meridian Ave Mary R. Grace, Larry Emmer Dollar GeneralWalnut Village D 1986/00 Howard Properties 53,850 3,500 6.50% $10.50 $0.00 Lady Of AmericaNW 122nd St & N Rockwell Ave Bill HowardWarr Acres D 1950/94 Ken Park 34,400 2,000 5.81% $10.00 $0.00 Big Red ShopNW 50th St & N MacArthur Blvd Ken Park Taj GrocersWarwick D 1985 Ta Enterprises 69,500 0 0% $8.00 $0.00 Crest11122 N Rockwell Ave Moon Ta Dollar GeneralWarwick Crossing D 1995 NAI Sullivan Group 31,804 8,828 27.76% $9.75 $0.00 Westside Batting CagesW Hefner Rd & N Rockwell Ave David Hartnack FX SalonWarwick Plaza D 1978/84 Grubb Ellis/Levy Beffort 45,600 0 0% $8.00 $0.00 State Farm InsuranceNW 122nd St & N MacArthur Blvd John Cohlmia Wall'sWest Park Mall C 1972 GBR Properties, Inc. 130,155 59,845 45.98% $16.00 $0.00 US Post OfficeNW 63rd St & N MacArthur Blvd Randy Valencourt Homeland

Northwest Totals 3,525,785 517,868 14.69%

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2010 Mid-Year Oklahoma City Retail Market SummarySouth Submarket

Chatney Square

Survey Summary

Big box vacancies in this submarket remain a problem: the original Wal-mart building, both the new and old Circuit City buildings, and the original Burlington Coat location along I-240. It appears that 240 Penn Park is close to a deal to fill their vacant Circuit City, albeit at a significant reduction in rate. Pier One has closed, but is to be backfilled by Half Price Books. This is another sector that also has a significant amount of older product, although a number of older centers in and around Capitol Hill are doing very well focusing on the growing Hispanic market and we are seeing some upgrading as a result.

Crossroads Mall is 75 percent vacant and being marketed for sale. It remains to be seen whether the Mall will remain retail upon a sale. If you take Crossroads Mall out of the calculation, the overall submarket

vacancy is 16 percent, unchanged from year-end. South Shields Plaza and Almonte Square account for a third of the remaining vacancy.

Outlook

The I-35 corridor in Moore and Norman continues to hurt this submarket. The new Crest on 104th and May will be a welcome addition to this market; a third quarter opening is expected. Hobby Lobby has announced the closing of their store at 89th and Western; the store may be relocated or closed altogether. Demographically, the southwestern portion of the south submarket is strong but it is not of sufficient density to drive development. The Hispanic market to the north is viewed as a specialty market by most retailers. Consequently, it may be several years before any significant new development occurs.

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2010 Mid-Year Oklahoma City Retail Market SummarySouth Submarket

South

Center Class Year Built Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenant(s)119th Street & Market Place E JR Fulton 27,480 14,938 54.36% $0.00 $0.00 Lemon GrassSW 119th St & S Western Ave Brad Worster Papa Murphys29th & Kentucky Shops D 1970 L & S Real Estate 32,500 1,200 3.69% $4.00 $0.00 Family DollarSW 29th St & S Kentucky Ave Young Shin New Century Food74 South Centre D 1973/77/06 Paul B. Odom Construction 50,000 1,500 3% $12.00 $14.00 Pancho's Mexican Rest.SW 74th St & S Pennsylvania Ave Linda Brown At the Beach89'er Plaza E 1984 Robert Jenks 30,000 7,500 25% $4.00 $0.00 Body BeautifulSW 89th St & S Walker Ave Robert Jenks Sharp CleanersAirline C 1999 Charles Shadid 121,368 9,000 7.42% $3.00 $5.00 Tom's Tires3400 SW 29th St Charles Shadid El Rodeo CarnecariaAlmonte Square C 1963 Blanton Property Co. 107,676 74,745 69.42% $0.00 $0.00 Almonte Bingo6100 S May Ave Jeff BoldingBrookwood North I & II D 1998 Charles Shadid 58,249 6,500 11.16% $5.00 $7.00 China Wok RestaurantSW 89th St & S Western Ave Charles Shadid Chelino's RestaurantBrookwood Shopping Center C 1979/97 Precor Ruffin, LLC 129,772 27,850 21.46% $9.00 $14.00 Hobby LobbySW 89th St & S Western Ave Rick PritchettCentre 8400 E 1984 Precor Ruffin, LLC 29,355 1,560 5.31% $9.25 $0.00 H&R Block8400 S Western Ave Rick Pritchett Johnnie's BakeryChatenay Square C PB Odom, III 114,115 4,600 4.03% $16.50 $0.00 HomelandSW 104th St & S Pennsylvania Ave PB Odom, III Panera BreadCountry Park Shopping Center D 1978 NAI Sullivan 30,000 4,500 15% $4.00 $0.00 Value ThriftSW 59th St & S Agnew Ave James Durocher Diaper OutletCrossroads Mall A 1974/92 Price Edwards & Co. 1,267,710 953,834 75.24% $10.00 $30.00 Bath & Body7000 Crossroads Blvd Jim Swenson Victoria's SecretCrossroads Shopping Center D 1987 AMCON Resources 31,269 0 0% $13.00 $0.00 Heritage College7100 S. I-35 Service Rd. Allen Gann SubwayEconomy Square C 1963/98 Economy Square Inc. 203,451 0 0% $0.00 $0.00 Buy For LessSW 29th St & S May Ave Charles Oppenheim WalgreensGrant Square C 1958/91/92 Price Edwards & Co. 103,810 25,703 24.76% $8.00 $5.00 Family DollarSW 44th St & S Pennsylvania Ave Susan Brinkley, Laci Jackson, Ev Ernst Blockbuster VideoGreenway Plaza D 1985 Levy Beffort 73,240 7,342 10.02% $11.00 $0.00 Westlake HardwareSW 119th St & S Western Ave Jim Rose Tuesday MorningHillcrest Shopping Center D N/A Blanton Property Co. 50,000 25,000 50% $0.00 $0.00 Dollar General2100 SW 59th St Jeff Bolding Rent-A-CenterI-240 Penn Park Phase I C 2005 CBRE/Oklahoma 239,743 42,903 17.90% $8.00 $17.50 MarshallsI-240 & S Pennylvania Ave Mark Inman Pets MartLightning Creek D 1985 Lightning Creek Complex 48,005 0 0% $9.00 $9.00 8100 S Western Ave Tammie KnightMayridge Shopping Center D 1956 Shadid Properties 38,000 8,500 22.37% $3.00 $4.00 Dollar GeneralSW 44th St & N May Ave Buddy ShadidPalagio Shops on So. Western C 2005 Paul B. Odom Construction 43,003 4,675 10.87% $16.50 $0.00 Pizza HutSW 104th St & S Western Ave Paul Odom III Jump ZoneReding Shopping Center D 1972 JAH Realty, L.P. 69,344 7,700 11.10% $12.00 $7.00 El ChicoGrand Blvd & S Western Ave Ethan Slavin Little CaesarsSouth 240 Plaza 1988 Brady Properties 25,000 1,200 4.80% $10.00 $0.00 US Cellular7800 S Western Ave Ali GhiaiabadiSouth Meridian Plaza D 1983 John Gholami 36,000 6,000 16.67% $10.00 $12.00 Waffle House1100 S Meridian Ave John Gholami Judy Neal Quizno'sSouth Park D 1975 South Park 86,848 0 0% $0.00 $0.00 Dept. of Corrections4500 S May Ave Mary Dolan Thomas Messiah Church MinistriesSouth Penn Plaza D 1984 Commercial OKC 90,000 3,600 4% $10.00 $0.00 Family Dollar1620 SW 89th St Marc Weinmeister State Farm InsuranceSouth Shields Plaza C 72/85/92/05 CBRE/Oklahoma 224,527 92,766 41.32% $3.00 $12.00 Langston's Western WearSW 74th & S Shields Blvd Mark Inman, Brian Donahue BurlingtonSoutheast Plaza C Grubb Ellis/Levy Beffort 185,266 34,700 18.73% $4.00 $8.50 Buy For lessSE 44th St & S High Ave Jim Rose Family DollarSouthern Hills C 1964/89/90 Phillips Edison & Co. 210,419 72,015 34.22% $18.00 $8.00 PaylessSW 74th St & S Pennsylvania Ave Pat Kelly Tan & ToneSouthwestern Plaza C 1962/87 Southern Properties 117,846 3,800 3.22% $9.00 $0.00 Cocina de Mino RestaurantSW 59th St & S Western Ave Steve Cupit, Amanda Family DollarStonebriar Shopping Center E 2005 Brady's Properties 30,000 2,050 6.83% $11.00 $0.00 Rusty's Custard13400 S Western Ave Ali Ghianiabadi Country Wide InsuranceSummit Point D 2008 steve Hetherington 30,000 12,500 41.67% $16.00 $0.00 Louie'sSW 89th St & S Western Ave Hunter MillerTowne South Center C 5/4/2010 Jackson Development LLC 130,000 12,000 9.23% $15.00 $15.00 Sam's OpticalSW 74th St & S Walker Ave Fred Mazheri Primo's Walker Square C 1983 Precor Ruffin, LLC 100,430 7,488 7.46% $14.00 $0.00 El Mariachi Super MarcadoSW 59th St & S Walker Ave Rick Pritchett MetroTech Beauty SchoolWalnut Square C 1985 Price Edwards & Co. 294,500 12,720 4.32% $9.00 $12.00 Big Lots2209 SW 74th St Laci Jackson, Susan Brinkley, Ev Ernst Conn'sWesternview Center C 1958/78 Grubb Ellis/Levy Beffort 104,000 8,496 8.17% $11.00 $12.00 Taste of ChinaI-240 & S Western Ave Jim roseWestminster Village D 1986 Brady's Properties 79,500 0 0% $9.00 $0.00 Westminster Executive Suite10601 S Western Ave Ali Ghaniabadi

South Totals 4,642,426 1,498,885 32.29%

Center Class Year Built Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenant(s)Crest Center C 2010 Grubb Ellis/Levy Beffort 96,000 12,000 12.50% $20.00 $0.00 Crest FoodsSW 104th & S May Ave John CohlmiaNorth Construction Totals 26,369 13,000 49.30%

0%

3%

6%

9%

12%

15%

20102009200820072006

Edmond Submarket Retail Vacancy2010 Mid-Year

-100

-80

-60

-40

-20

0

20

40

60

80

20102009200820072006

Edmond Submarket Retail Absorption2010 Mid-Year

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2010 Mid-Year Oklahoma City Retail Market SummaryEdmond Submarket

Edm

ond

Alta Mesa

Survey Summary

The Edmond market, like much of the metro area, has seen a shift in retailers between projects, but the overall vacancy rate remains relatively unchanged at 12.6 percent. Three centers, Edmond Market Place, Eagle Crest and Kelly Plaza contain 43 percent of the market vacancy; these each have some big box vacancy. The next three most vacant properties make up another 20 percent. Overall, Edmond demographics remain a draw though and continues to make this a desirable market for retailers. 2nd Street and Bryant remains ground zero for Edmond retail and the centers at this intersection are strong performers. A mile south, Spring Creek Plaza and Spring Creek Village are seeing their more upscale tenants do well during the downturn.

Outlook

It is anticipated that Edmond occupancy will continue to hold up fairly well. No new construction in the near term should allow the most vacant properties to begin addressing their holes. While we anticipate retailers negotiating hard on renewals, there are fewer options in Edmond given that most of the market is 93 percent plus occupied. So, while rents will trend downward, it will be less pronounced than other submarkets.

No development is currently underway in the submarket; there is talk of reviving the 15th street and I-35 project. Edmond should be one of the first markets to attract new projects once we turn the corner with regard to the overall economy and financing. Now is the time for existing project owners to address upcoming renewals and solidify tenancy prior to the start of any new projects that will compete for their tenants.

11

2010 Mid-Year Oklahoma City Retail Market SummaryEdmond Submarket

Edmond

Center Class Year Built Leasing Agent GLA Vacant Vac. & Rate 1 Rate 2 Anchor Tenant(s)33rd & Boulevard D 1982 Lee Segal 49,400 0 0% $7.00 $0.00 Mardel'sE 33rd St & S Boulevard St Lee Segal Family DollarAlta Mesa D 2008 JAH Realty, L.P. 31,061 7,409 23.85% $20.00 $13.00 Qdoba301 S Bryant Ave Ethan Slavin At the BeachBerkshire Plaza D 2002 Price Edwards & Co. 35,612 1,800 5.05% $13.00 $15.00 Office DepotW 15th St & S Broadway Laci Jackson, Susan Brinkley, Ev Ernst Mr. GoodcentsBoulevard Village D 1985 Irish Realty 36,604 7,200 19.67% $0.00 $0.00 Radio Shack3404-3456 S Boulevard St Misty Doney Pizza HutBroadway South D 1977 Levy Beffort 61,524 1,968 3.20% $15.00 $0.00 Edmond Music3320 S Broadway John CohlmiaBroadway Square C Land Run Commercial 98,000 0 0% $13.00 $14.50 City Bites3601 S Broadway Jeremy Foraker Morrison GroupBryant Square C 1973/92 Price Edwards & Co. 274,930 1,679 0.61% $7.00 $12.00 PetcoE 2nd St& N Bryant Ave Susan Brinkley, Laci Jackson, Ev Ernst SteinmartDanforth Plaza D 2003 CBRE/Oklahoma 30,000 7,124 23.75% $13.00 $13.00 CatoW Danforth Rd & S Sante Fe Ave Mark Inman H&R BlockDanforth Square C 1999 Gianos 108,000 3,600 3.33% $12.00 $0.00 Athletic VillageW Danforth Rd & S Kelly Ave Gianos Domino's PizzaEagle Crest D 1983 CBRE/Oklahoma 51,000 32,240 63.22% $5.00 $10.00 Blockbuster Video3000 E Memorial Rd Stuart GrahamEdmond Crossing C 1995 Commercial Assets 159,600 24,000 2.51% $16.00 $16.00 Homeland24 E 33rd St Brenda Cobb TJ MaxxEdmond Exchange B 2003 JAH Realty, L.P. 71,243 20,137 28.27% $12.00 $16.00 On the Border3233 S Broadway Ethan Slavin Coach'sEdmond Market Place D 1981/82/90 Price Edwards & Co. 96,112 77,147 80.27% $6.50 $14.00 Delta Café3301 S Boulevard Susan Brinkley, Ev Ernst, Laci Jackson TraditionsEdmond Plaza C 1964/89/05 Price Edwards & Co. 158,373 22,107 13.96% $8.00 $14.00 Westlake HardwareE 15th St & Broadway Ext. Susan Brinkley, Laci Jackson, Ev Ernst Conn'sEdmond Trails E 25993 CBRE/Oklahoma 25,215 7,500 29.74% $0.00 $16.00 YMCA of Edmond289 S Santa Fe Ave Stuart Graham Game X ChangeHomestead Plaza D 2003 JAH Realty, LP 39,000 9,906 25.40% $15.00 $0.00 US CellularW Danforth Rd & N Santa Fe Ave Charlene Wilson Buffalo Wild WingsKelly Centre Shopping Center D 2003 CBRE/Oklahoma 43,769 7,700 17.59% $10.00 $14.00 Nichols Hills Bank610 S Kelly Ave Ryan StorerKelly Plaza D 1984 Grace Commercial 85,639 32,050 37.42% $4.50 $7.50 ColortymeW Edmond Rd & S Kelly Ave Larry Emmer Sherwin WilliamsKickingbird Square C 83/88 Grubb Ellis/Levy Beffort 110,000 0 0% $13.90 $0.00 Regal Cinema1323 W Danforth Rd Jim Rose InterurbanNorth Oaks D 1983/89 Price Edwards & Co. 70,672 15,077 21.33% $12.00 $8.00 Westlake Hardware821 W Danforth Rd Brandy Rundel Dollar GeneralOak Brook D 1982/91/92 Wiggin Properties 43,006 5,279 12.28% $10.00 $0.00 Hunan218 S Santa Fe Ave Don Faulkner Dollar GeneralOxford Pointe Shops E 1986 Price Edwards & Co. 26,600 0 0% $9.00 $10.00 The ArchivesE 2nd St & S Bryant Ave Susan Brinkley The Vision CenterPebble Creek D 2001 Walter Morris & Associates 62,500 0 0% $18.00 $0.00 Kohl'sW Danforth Rd & N Santa Fe Ave Andy Boyd Dollar TreeShoppes On Broadway C 2008 Price Edwards & Co 160,000 9,275 5.80% $16.00 $22.00 Hobby LobbyE 33rd St & S Boulevard Susan Brinkley, Karleen Krywucki, Ev Ernst, Laci Jackson IO MetroSignal Ridge D 1986 Fotis Bargeliotes 35,000 1,800 5.14% $8.00 $0.00 Conoco1700 S Kelly Ave Fotis Bargeliotes Daylight DonutsSpring Creek Plaza D 2000 Zerby Interests 63,000 14,022 22.26% $20.00 $14.00 Talbot'sE 15th St & S Bryant Ave Shawn Driver Panera BreadSpring Creek Village of Edmond D 2005 Charles Ballenger 62,000 5,366 8.65% $18.00 $26.00 Legacy BankE 15th St & S Bryan Ave Charles Ballenger BallengersUniversity Village B 2000 Sooner Development 400,000 2,800 0.70% $18.00 $22.00 Target Super CenterE 2nd St & S Bryant Ave Brad Goodwin Lowe'sUniversity Village 2 B 2000/2004 Sooner Investment 76,500 1,890 2.47% $20.00 $20.00 Wal-Mart Neighborhood Mkt.E 2nd St & S Bryant Ave Brad Goodwin BlockbusterWillow Creek E 1985 31,000 8,400 27.10% $11.50 $10.00 Oasis ChurchE 2nd St & N Santa Fe Ave Lisa Brandes Vernon Millspaugh

Edmond Submarket Totals 2,595,360 327,476 12.62%

-100

-60

-20

20

60

100

140

20102009200820072006

West-Central OKC Submarket Retail Absorption2010 Mid-Year

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0%

2%

4%

6%

8%

10%

20102009200820072006

West-Central OKC Submarket Retail Vacancy2010 Mid-Year

12

2010 Mid-Year Oklahoma City Retail Market SummaryWest-Central Submarket

Wes

t-C

entr

al

Target Center

Survey Summary

The I-40 & Garth Brooks Blvd intersection is a major retail draw as is Westgate Marketplace on MacArthur & I-40. Together, these areas contain over 2 million square feet of space. Aside from these newer developments, the submarket is primarily comprised of neighborhood centers, most of which are unanchored. The Asian district along Classen is a unique market within a market that tends to do well and stand on its own. The I-40 and Portland area remains the major retail furniture and design center for the community and the state. By our count, there are 33 stores, containing over 1.6 million square feet, operating in this area that specializes in furniture and accessories. This district is further fragmented as it includes the growing Mustang market on one hand and the established 23rd street market on the other.

Vacancy was virtually unchanged from year-end at 8.1 percent. Windsor Hills leased their vacant theater to a boutique theater operator. This was offset by some big box vacancy. Apart from larger spaces, there was modest improvement in occupancy across the submarket.

Outlook

The small shop space just north of the new Target on Garth Brooks filled up quickly which speaks well of the demand for retail in Yukon, particularly south of I-40. The Horizon outlet development on the land in front of the old ATT building appears to be on track provided the developer can get his financing finalized. Oklahoma City has contributed sales tax rebates to this project which has helped get this project done (almost done anyway) in a difficult market. The unique nature of this project, with a number of tenants that will be new to our market, should lead it to be successful without cannibalizing existing projects. As the now mature Westgate Marketplace proved, the West Central submarket has historically been an underserved retail market and the markets strong occupancy in a down market suggests that it could support additional retail.

13

2010 Mid-Year Oklahoma City Retail Market SummaryWest-Central Submarket

West-C

entral

Center / Address Class Year Built Leasing Agent / Co. GLA Vacant Vac. % Rate1 Rate 2 Anchor Tenant(s)16th & Indiana D 2002 Charles Shadid 41,079 0 0% $3.00 $5.00 Discount Dollar StoreNW 16th St & N Indiana Ave Charles Shadid Bad Granny's36th & May Center C 1986 B.D. Eddie Enterprises 97,500 1,250 1.28% $8.00 $0.00 Pole Position RacewaySW 36th St & S May Ave Terry McGuireAnn Arbor Terrace E 1971 Grubb Ellis/Levy Beffort 30,000 0 0% $8.00 $0.00 Family Dollar4913 NW 23 St Jim RoseArvest Plaza D 1986/00 J. S. Ferguson 32,600 2,800 8.59% $9.00 $0.00 Arvest Bank915-917 S Cornwell Dr JS FergusonChisholm C 1979/82 CBRE/Oklahoma 232,510 71,588 30.79% $3.00 $16.00 CiCi'sI-40 & Garth Brooks Blvd Ryan Storer Big LotsDeVille C 1964/92/94 Grubb Ellis/Levy Beffort 125,377 21,459 17.12% $3.00 $3.00 Buy For LessNW 23rd St & N Council Rd Jim Rose Heart & Hand ThriftGlen Oaks D 1968/98 JAH Realty, L.P. 49,161 13,020 26.48% $15.00 $7.00 Westlake HardwareNW 23rd St & N Rockwell Ave Ethan Slavin Blockbuster VideoMacArthur Court D CBRE/Oklahoma 35,228 8,697 24.69% $10.00 $15.00 3820 N MacArthur Blvd Brian DonahueMacArthur Park D 1997 Charles Shadid 55,506 0 0% $5.00 $6.50 Community Thrift Store2300 N MacArthur Blvd Charles Shadid Queen of Sheba RestaurantMeridian Plaza D 1959 Grubb Ellis/Levy Beffort 90,590 19,082 21.06% $5.00 $4.00 James LightingNW 16th St & N Meridian Ave Jim Rose Dollar GeneralMustang Shopping Center D 2004 CBRE/Oklahoma 35,846 3,600 10.04% $16.00 $0.00 CATO216 N Mustang Mall Terr Stuart Graham DOLLAR TREEMustang Trade Center C 1983 LandRun Commercial 106,850 36,700 1.12% $9.00 $9.00 Dollar GeneralHwy 152 & S Mustang Rd. Jeremy Foracre Factory ConnectionOld Mill D NA National Properties 82,730 2,300 2.78% $6.00 $0.00 Locke Supply301 Elm Ave Ray WrightPenn Crossing D 1994 CBRE/Oklahoma 133,356 2,450 1.84% $17.00 $6.00 Walmart Neighborhood Mkt.NW 23rd St & N Pennsylvania Ave Stuart Graham FedEx OfficePortland Square D 1958/87 Charles Johnson, DDS 38,000 10,000 26.32% $4.00 $0.00 Sam's Wholesale LiquorNW 23rd St & N Portland Ave Chuck JohnsonRock Glen Center E 1994 NAI Sullivan Group 25,308 2,800 11.06% $3.64 $0.00 Coleman's Pawn1500 N Rockwell Ave David Hartnack Labor ReadyShartel Plaza D 1965 Pro Realty 40,736 1,200 2.95% $12.50 $0.00 CVS5225 N Shartel Ave Greg DownsSilver City Center D 1974/94 NAI Sullivan Group 88,851 30,221 34.01% $8.00 $0.00 Tractor Supply101 N Mustang Rd David Hartnack Curves for WomenTarget Center C 2009 273,000 0 0% $20.00 $16.00 TargetNATen-M D 1958/88/91 Joe LaBar 33,000 0 0% $7.00 $0.00 Summit Business SystemNW 10th St & N Meridian Ave Joe LaBar Apple Tree Antique MallWalnut Creek D 1974 Charles Shadid 52,822 12,000 22.72% $3.00 $4.00 1110 N MacArthur Blvd Charles ShadidWest End Pointe B 2001 CBRE/Oklahoma 507,500 10,600 2.09% $16.00 $16.00 Lowe'sI-40 & Garth Brooks Blvd Mark Inman Kohl'sWest Pointe Shoppes E 2006 Grubb & Ellis Levy Beffort 25,000 13,000 52% $16.00 $18.00 Biff's Around the ClockW Reno Ave & N Mustang Rd Michael Almaraz Human Performance CentersWestgate Marketplace A 2000 Zerby Interests 1,000,000 7,000 0.70% $23.00 $0.00 Wal-MartI-40 & S MacArthur Blvd Shawn Driver Home DepotWest Oaks Village D 1964/74/82 Baker - First 91,347 0 0% $4.00 $0.00 Family DollarNW 10th St & N Rockwell Ave Anna Conrady Cabinet OutletWill Rogers C 1982 Charles Shadid 160,000 38,700 24.19% $4.00 $6.00 Oriental Imports3000 N Portland Ave Charles Shadid McSalty's PizzaWindsor Hills C 1960/98 Phillips Edison Co. 235,561 14,600 6.20% $6.50 $12.00 Crest Foods4601 NW 23rd St Brenda Canada Big LotsWindsor Park E 1982 Grubb Ellis/Levy Beffort 26,700 0 0% $12.00 $10.00 Ci Ci's Pizza2500 N Meridian Ave Jim RoseYukon Hills C 1978 JAH Realty, L.P. 127,200 7,500 5.90% $6.00 $9.00 Cross Trainers FitnessS Cornwell Dr & E Vandament Ave Ethan Slavin Buy For LessYukon Shopping Center D 2005 CBRE/Oklahoma 231,500 2,040 0.88% $14.00 $0.00 Dollar TreeI-40 & Garth Brooks Blvd Mark Inman/Stuart Graham Cato

West-Central Totals 4,104,858 332,607 8.10%

0%

2%

4%

6%

8%

10%

20102009200820072006

Moore-Norman Submarket Retail Vacancy2010 Mid-Year

-250

-200

-150

-100

-50

0

50

100

150

200

20102009200820072006

Moore-Norman Submarket Retail Absorption2010 Mid-Year

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2010 Mid-Year Oklahoma City Retail Market SummaryMoore-Norman Submarket

Mo

ore-

Nor

man

Campus Corner

Survey Summary

The I-35 Moore-Norman corridor vacancy is one of the metro areas lowest coming in at 7.5 percent at mid-year, a slight improvement from the 8.1 percent at year-end. Hobby Lobby opened at the Shops at Moore and Target has announced plans to construct a store immediately to the west of Home Depot at Fritts Farm, further cementing the 149th street and I-35 intersection as a major center for retail in the market. Sooner Mall continues to be well-occupied and appears to be a survivor in the enclosed Mall wars. Centers in this market, with few exceptions, have been able to maintain solid occupancy. A number of smaller than 25,000 s.f. strip centers have been built over the past 18 months and most are struggling to get full.

Outlook

Shoppes at Moore added some small shop space at the north end of their development; otherwise, there is no current development in this submarket. University Town Center has added Academy and is working on pre-leasing some planned small-shop space. By all accounts, tenant sales at the project remain good, but the lifestyle portion of the project remains on hold. Existing properties should remain fairly stable. However, properties with national tenants in this market will see a downward trend in rents on both renewals and new leases.

15

2010 Mid-Year Oklahoma City Retail Market SummaryMoore-Norman Submarket

Mo

ore-Norm

an

Center Class Year Built Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenant(s)Alameda Square D 1984 Equity Commercial Realty, LLC 85,420 20,447 23.94% $14.00 $10.00 Ace Hardware12th Ave SE & E Alameda St Eric Fleske Dollar TreeAnatole D 1985 Equity Commercial Realty 64,555 2,900 4.49% $12.00 $20.00 Harbor Freight Tools12th Ave SE & E Alameda St Gayla Artman Sherwin WilliamsBroadway Plaza D Equity Realty 31,588 16,881 53.44% $11.00 $0.00 Home Creation2200 N Broadway St Eric FleskeBrookhaven Village C 1985 Price Edwards & Co. 154,272 13,353 8.66% $0.00 $0.00 Chico's36th Ave NW & W Robinson St Lee Chancellor TalbotsCamden Plaza E 2006 Equity Commercial Realty, LLC 31,100 0 0% $16.50 $0.00 1003-1035 SW 19th St Eric FleskeCampus Corner Shops C 1911/93 Equity Commercial Realty, LLC 225,000 18,000 8% $12.50 $19.00 OU Authentic301 W Boyd St Rainey Powell Louie's Rest.LuccaCarriage Plaza E 1983 Gus Gianos Family Partnership 25,500 0 0% $0.00 $0.00 The Webb2001 W Main St Peter Gianos Cayman'sCenter on Main (Downtown Center) C 1965 Retail Investors, Inc. 107,000 0 0% $7.50 $0.00 Firestone500 Main St Perry TroutColonial Estates C Ren. 1988 Equity Commercial Realty, LLC 104,051 0 0% $10.00 $12.00 Value Foods12th Ave SE & E Lindsey St Robert FinleyEast Moore Shopping Center D 2006 Grace Commercial 24,484 2,000 8.17% $8.00 $8.00 Dollar General406 S Eastern Ave Mary Grace, Larry Emmer Cleveland Co. Health Dept.Heisman Square D 1999 Price Edwards & Co. 93,000 7,400 7.96% $14.00 $14.00 Homeland12th Ave SE & E Alameda St Susan Brinkley, Laci Jackson, Ev Ernst At the BeachHobby Lobby Bldg. D CBRE/Oklahoma 47,000 0 0% $10.00 $10.00 Wine Store555 W Main St Mark Inman University of OklahomaHollywood Center C 1964 Foreman Properties 127,600 0 0% $0.00 $0.00 Homeland1600 W Lindsey St Lynn Foreman Hancock FabricMalibu Shopping Center E 2005 Gerald Gamble Co. 27,000 11,250 41.67% $8.00 $0.00 Advance America Cash824 NW 12th St Gerald GambleMerkle Creek D 1985 Equity Commercial Realty, LLC 32,000 1,640 5.13% $13.00 $0.00 Play It Again Sports2203 W Main St Gayla Artman Tan & Tone AmericaMoore Towne Center D 2005 Domain Commercial, LLC 35,000 4,868 13.91% $15.00 $17.00 McAlester'sI-35 & SW 19th St Micah Alcorn Mazzios Pizza, RossNew City Center C 1963/98 Precor Ruffin, LLC 181,894 51,625 6.39% $6.00 $9.00 Family Dollar605 N Moore Ave. Rick Pritchett SubwayNormandy Creek C 1974 Dillard Group 107,366 9,980 9.30% $10.00 $0.00 Hastings Books2200 W Main St Steve Williams, Sandy Taylor Furr's CafeteriaPark On Main D 1982 Huettner Properties 68,045 2,000 2.94% $8.00 $12.00 POM Executive Suites36th Ave SW & W Main St Debby Busking Moto PhotoParkway Plaza B 1996 Zamias Services, Inc. 375,000 7,400 1.97% $12.00 $15.00 Barnes & NobleEd Noble Parkway Carolyn Kellogg Bed Bath & BeyondRiverwalk Centre E 2000 Grubb Ellis/Levy Beffort 159,127 0 0% $16.00 $0.00 Kohl'sI-35 & SW 19th St Ryan Storer Gordman'sRiverwalk Plaza E 2000 Price Edwards & Co. 26,939 0 0% $13.00 $14.00 Midwest Regional Hospital2109-2139 Riverwalk Dr Susan Brinkley Integris Physical TherapyRiverwalk Shops D 2006 EquityCommercial Realty, LLC 34,000 5,250 15.44% $15.50 $16.50 Alfredo's192713 Service Rd Robert FinleyRobinson Crossing C 1986/89 Brady's Properties 118,000 1,750 1.48% $12.00 $14.00 Dollar six movie1300 N Interstate Dr Ali Ghaniabadi Papa Murphy's PizzaShops @ Moore Power Center C 2007 CBRE/Oklahoma 900,000 54,211 6.02% $18.00 $24.00 Office DepotI-35 & SE 19th St Mark Inman Best BuySilver Leaf D 1985 Sun Lee 88,097 0 0% $0.00 $0.00 SilverLeaf FurnitureSE 12th St & S Eastern Ave Sun Lee Family DollarSooner Mall B 1976/88/99 General Growth Properties 503,851 38,722 7.69% $0.00 $0.00 Dillard'sI-35 & W Main St SearsSooner Shopping Center D 1966 Ultra-Thin 50,000 3,000 6% $5.00 $0.00 Moore Rexall DrugsNW 5th St & N Broadway St Joe Bryant Moore Tag AgencySooner West Plaza D 1981 Equity Commercial Realty, LLC 64,500 1,500 2.33% $15.00 $15.00 Wright's IGA36th Ave SW & W Main St Gayla Artman Tuesday MorningStubbeman Village E 1972 Equity Commercial Realty, LLC 33,475 0 0% $17.00 $0.00 Mr. Bill'sElm Ave & Elmwood Dr Judy Hatfield Ratcliff's BookstoreThe Main Center D 2005 HEW Marketing, Inc. 106,307 0 0% $9.00 $9.00 Hobby LobbyN Flood Ave & W Main St Heather Warrington Rent A CenterUniversity North Park B Price Edwards & Company 539,705 70,447 13.05% $17.00 $22.00 I-35 & W Robinson St Brandy RundelWest Port Shopping Center D N/A City Properties 40,898 3,200 7.82% $0.00 $0.00 Moore Family Clinic1200 N Santa Fe Ave Jennifer/Amy GFF Foods

Moore-Norman Totals 4,611,774 347,824 7.54%

0%

5%

10%

15%

20%

25%

30%

20102009200820072006

Eastern OK County Submarket Retail Vacancy2010 Mid-Year

-100

0

100

200

300

400

500

600

20102009200820072006

Eastern OK County Submarket Retail Absorption2010 Mid-Year

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2010 Mid-Year Oklahoma City Retail Market SummaryEastern OK County Submarket

East

ern

OK

Cou

nty

Town Center

Survey Summary

As noted in the summary, Heritage Park Mall has been removed from our survey. The Mall has been closed and it is not expected to reopen as a retail facility. We will continue to track the Sears building as a freestanding building. As a result, the market vacancy for the Eastern Oklahoma County submarket ended June at 15.6 percent. Heritage Plaza, Choctaw Plaza, Northeast Shopping Center and Uptown Plaza account for 55 percent of the total submarket vacancy. Uptown Plaza has undergone a renovation and has leases pending that will significantly improve their numbers. A number of the other centers in the market are older and finding a harder time attracting tenants. Most of the newer, well-located properties in the market are well above 90 percent occupancy.

Outlook

By all reports, Town Center has become the center of this submarket’s big box retail and it continues to draw strong traffic and generate good sales for retailers. No significant movement, either positive or negative, is expected in the rest of the market for the remainder of the year. This submarket is very much driven by small shop space and local retailers. These types of tenants have proven to be more stable with regard to rent. Consequently, we see rents staying relatively flat for the year. No new development is expected in the next six months to a year although you could argue that this market remains underserved given the Town Center results.

17

2010 Mid-Year Oklahoma City Retail Market SummaryEastern OK County Submarket

Eastern OK C

ounty

Center Class Year Built Leasing Agent GLA Vacant Vac. % Rate 1 Rate 2 Anchor Tenant(s)23 Post Plaza D 1986 Nancy Brewer 35,000 0 0% $7.00 $0.00 Spencer's SmokehouseNE 23rd St & N Post Rd Nancy Brewer Farmer's InsuranceBoulevard Market Place D 1983 Weingarten Realty 36,148 7,534 20.84% $0.00 $0.00 Factory Direct101 N Douglas Ave Andrew Clifton Papa Murphy'sChoctaw Plaza C 1974/84 Levy Beffort 130,765 65,270 49.91% $7.95 $4.95 Williams Food14407 NE 23rd St Michael Almaraz Chase BankDecker Center D 1982 Brady's Properties 33,500 10,850 32.39% $5.00 $8.00 Allied Medical1200 S Air Depot Blvd Ali Ghaniabadi FedEx OfficeDel Crest Shops D 1957/90 NAI Sullivan Group 78,150 20,000 25.59% $4.00 $6.00 AllstateSE 15th St & S Sunnylane Rd Robin O'Grady Dollar GeneralDixon Plaza D 1978/80 Joe Leon 34,900 0 0% $8.00 $0.00 Shapes GymSE 15th St & S Post Rd Joe Leon Farmer's InsuranceEastgate Shopping Center D 1965 North Star 51,052 25,399 49.75% $4.00 $0.00 Family Dollar1100 N Midwest Blvd Joseph AtkinsonGateway Plaza C 1985 Grubb Ellis/Levy Beffort 100,000 0 0% $10.00 $10.00 Dollar TreeSE 15th St & S Air Depot Blvd Jim Rose Hobby LobbyGreenhaw D 1960 Law Offices 33,000 0 0% $6.00 $0.00 Dollar GeneralNE 10th & N Lee Ave Edward LeeHartsdel D 1995 Charles Shadid 50,000 22,700 45.40% $3.00 $5.00 Highlander LaundrySE 44th St & S Bryant Ave Charles Shadid Beauty SupplyHeritage Plaza D 1987 GBR Properties,Inc. 75,071 35,481 47.26% $5.00 $10.00 Weight Watchers351 N Air Depot Blvd Bob Parker Ron's HamburgersHoliday Square D 1974 Pelfriz Investments 85,000 8,000 9.41% $4.00 $0.00 Dinner Club1100 S Air Depot Blvd Ray Pelfriz Karen's KidsNorth East Shopping Center D Charles Shadid 100,000 34,300 34.30% $3.00 $5.00 Options Unlimited1124 NE 36th St Charles Shadid Jackson HewittPark Estates D 1952 Shapard Properties,Inc. 38,000 8,000 21.05% $3.00 $0.00 Scott CleanersSE 36th & S Kelly Ave Bill Shapard Dollar GeneralPark Plaza D 1993 Charles Shadid 38,268 18,500 48.34% $3.00 $4.00 Diva Beauty Supply3700 Springlake Dr Charles Shadid Whirlwind CleanersSooner Market Place D 1995 Charles Shadid 63,013 7,000 11.11% $5.00 $7.00 Chelino'sE Reno Ave & N Sooner Rd Charles Shadid Speed MartSpencer's Center D 2000 Charles Shadid 40,000 7,500 18.75% $3.00 $5.00 ConocoNE 23rd St & N Spencer Rd Charles Shadid Discount Beauty SupplySunnylane Plaza D 1979 NAI Sullivan Group 84,888 13,540 15.95% $4.66 $0.00 Family DollarSE44th St & S Sunnylane Rd Bob Sullivan Advance AmericaTan & Tone America Center E 2005 Ta Enterprises 25,300 1,800 7.11% $12.00 $15.00 Tan & Tone America1900 S Air Depot Blvd Moon Ta Buffalo Wild WingsThe Village D 1968 Michael Biddinger Real Estate 32,000 1,600 5% $6.00 $0.00 Rent A CenterSE 29th St & S Vicki Ave Morgan HallTown & Country C 1966/89 Weingarten Realty 138,000 0 0% $10.00 $0.00 Office DepotE Reno Ave & N Air Depot Ave Daniel Goldware Big LotsTown Center Midwest City B 2005 Sooner Investment 750,000 0 0% $20.00 $0.00 TargetSE 29th St & S Air Depot Blvd Brad Goodwin Lowe'sUptown Plaza C 1958/72/06 NAI Sullivan 168,032 61,356 36.51% $10.00 $11.00 Langston's7430 SE15th St Bob Sullivan Michael'sVillage Oak E 1981 Brady's Properties 27,500 2,200 8% $8.00 $6.00 Lupe's Resturant1000 S Douglas Blvd Ali Ghaniabadi Papa John PizzaWestminster Shopping Center D 1963 V. C. Davidson 58,000 9,000 15.52% $4.00 $0.00 Angle's FurnitureNE 23rd St & S Westminster Rd Davidson B & B Surplus

Eastern OK County Totals 2,305,587 360,030 15.62%

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

2010 Mid-Year Oklahoma City Retail Market SummaryConsumer Survey – How Consumer Behavior has Changed During the Recession

The ICSC Research Department recently completed a study of over 2,500 consumers. The key findings of the survey follow:

BACKGROUNDBoth consumers and businesses have dealt with a great deal of uncertainty in 2009. Most of this year has been marked by consumers reigning in discretionary spending, while retailers and shopping center owners want to know what it will take to get consumers shopping again.Some of the key questions the industry stakeholders have are: When the economy improves will consumers return to theirold shopping habits and haunts or have their spending patterns been irreversibly altered by the recession? After the recession,where will the consumer want to shop? And what factors will influence their buying decisions?

KEY FINDINGSFinancial Situation & Perceptions• While the majority of consumers

rated their current financial situation as good (35%), fair (40%) or excellent (7%) – only 18% rated their financial situation as poor.

• Consumers are somewhat optimistic regarding the next 12 months. Over 40% believe their financial situation will improve over the next 12 months, while 47% believe it will stay the same and only 11% say their situation will get worse.

• Residents of the Midwest and South regions tend to report a weaker financial position, while West residents are most optimistic.

• Consumers age 18-44 tend to be more optimistic than those age 45+.

Shopping Habits• Over three-fourths of the shoppers

report that they have cut back

in some way over the past 12 months. Over half reported cutting back on fine dining, casual dining, movie theater attendance and salon/spa services. Between 40%-50%reported cutting back in most retail categories. The categories least likely to be affected were visits to discount stores and grocery stores, and purchases of necessities.

• Shoppers were somewhat more likely to attribute their change in shopping behavior to precautionary measures and concerns in general, than to economic reasons (such as a job loss or wage reduction).

• Shoppers’ perception of their financial situation had a bigger impact on their shopping behaviors than did their income. Among those who rated their financial situation as excellent – only half reported cutting back in the last 12 months. In comparison, 75% of those with incomes of $100,000+ reported cutting back.

• There were also significant differences based on gender. Although men and women have similar financial perceptions and expectations, women were much more likely to report that they had cut back on their shopping. This may be due to the fact that women are typically responsible for a larger share of the household shopping.

• While 80% of consumers reported cutting back over the last 12 months, only 40% report that they expect to increase their shopping behavior when the economy improves. The areas with the greatest likelihood of increased use were shopping trips in general, department store visits and purchase of discretionary goods.

Loyalty Programs• About half of the shoppers report

that they belong to a loyalty or rewards program for a retailer or shopping center.

• Grocery programs are by far the most popular type of retailer program (37%), followed drug store (19%), department store (17%), discounter (14%), dining/restaurant (14%) and book store (12%). Only 2% reported that they belong to a mall or shopping center program.

• The main reason for belonging to a reward program is because of the special/extra discounts given to reward members or the rewards earned based on purchases. Gifts, freebies, advanced notice of sales and special access for members are far less important.

Special Events• Forty percent of shoppers report

they have attended a special event or activity at a shopping center within the past 12 months. An additional 25% indicate that although they did not attend a special event during the past 12 months, they are interested in these types of activities and would like their shopping center to offer more options.

• The most widely attended/popular types of events are farmers markets, craft fairs, and music events/concerts.

• Over half of the event attendees report that they also shopped or made a food purchase in the mall when they attended their last special event (58%).