Oklahoma City2013 Mid-Year

Retail Market Summary

The Outlet Shoppes at Oklahoma City

TABLE OF CONTENTS

Retail Market Summary 1-2

Sales Summary 3

Quick Hits 4-5

North Submarket 6-7

Northwest Submarket 8-9

South Submarket 10-11

Edmond Submarket 12-13

West-Central Submarket 14-15

Moore / Norman Submarket 16-17

Eastern OK County Submarket 18-19

The E-Commerce Imperative 20-21

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

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OKC TOTAL RETAIL MARKET VACANCY

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The strength of the Oklahoma City retail market

was reflected in the mid-year numbers. Overall

vacancy declined to 9.0 percent from 10.2

percent at year-end 2012. Positive absorption

was nearly 200,000 square feet and six of the

seven submarkets we track showed higher

occupancy. A number of factors worked

together to bring about this level of improvement.

First and foremost, our economy remains good

with unemployment under 5 percent, and good

income growth, these are the bread and butter

of retailers. As a result, retailers, particularly

national retailers, were actively expanding and/

or locating stores here. Newer centers tend to

be full, over 95 percent occupancy for centers

built since 2000, and our overhang of big box

space is in essence gone. Consequently, a

number of recent expansions, Dick’s Sporting

Goods for example, have built new buildings,

adding occupied space to the market. During

the first half of the year, four centers - Eagle

Crest in Edmond , West Park Mall, and two

smaller properties in the Moore-Norman

submarket – have been either torn down or

changed use, thereby taking significant vacancy

off the market.

As is always the case, some older obsolete

centers with poorly configured space or owners

with limited resources have higher vacancy. This

is the reason for the stubbornly high vacancy in

the Eastern Oklahoma County submarket. In

addition, we are seeing some vacancy in historic

retail corridors that still have good traffic and

demographics but have suffered as retailers

are being drawn to the newer retail nodes along

interstate highways. May Avenue and Northwest

Highway being two examples.

We believe the market is in a good position to

maintain and build on its current strength over

the next few years. Expect new development

both in additions to existing projects and the

first larger scale development in a number of

years, most likely along Memorial Road. Keep

in mind that one of our markets strengths is

that our highs never get too high and our lows

never get too low (at least since the 80’s oil

bust), so activity should be positive but not

aggressive. The fact that the national retail

market is recovering will also temper our growth

as many retailers will focus their attention on

the larger, more dynamic markets. And, we

should never overlook the risk inherent in our

energy market; an extended lull in the market

or a downturn of any length will take the air out

of our retail growth.

ISSuES OF INTErEST

New & Expanding retailers

The number of national and regional retailers

either new to our market or expanding continues

to grow. The most high profile are probably

Nordstrom Rack to Belle Isle, Hemispheres

expanding to Fritts Farm and the Quail Springs

area, and the previously announced and now

open Dick’s Sporting Goods. LA Fitness plans

facilities in 3 or 4 metro locations and should

start construction soon. Gold’s continues its

growth with the construction of a Gold’s Express

in Yukon. Mathis Brothers is adding more Sleep

Studio stores and will soon announce Oklahoma

City locations for its Ashley Furniture stores.

Marshall’s is adding stores. The previously

announced Von Maur department store remains

on track to replace Sears once they vacate at

Quail Springs Mall. Other additions include

Tilley’s, The Tile Store, Versona, Fallis, Charming

Charlies, and HomeGoods, the first of which

will open at University Northpark. The wave of

retail dental locations continues with Aspen,

Heartland, Dental Depot and others. Other

expanding categories include yogurt (again),

discounters in several different formats,

electronic cigarette stores, and a variety of

restaurant concepts, particularly focusing

on quality, quick serve like 5 Guys Burgers,

Freebirds, etc. Medical and emergency medical

are also expanding into retail locations.

Grocery expansion continues but at a

slower pace. Walmart, the dominant player

in the market continues its growth with new

Neighborhood Markets in Norman and West

Oklahoma City, Sam’s Club in Edmond and

Moore with more sites under consideration.

Crest is under construction at University North

Park and is considering other sites. Aldi is

actively looking for additional sites. Fresh

Market and Reasors remain interested in our

market and at least one other national chain

has explored expansion here.

As previously reported, Costco, Cabellas,

Ruth’s Chris and Main Event are among retailers

exploring our market. And, there are several

more that are not prepared at this time to

announce their intentions. Nevertheless, the

level of activity is the most we’ve seen in the

last 10 years.

Oklahoma City2013 Mid-Year Retail Market Summary

ThE rETAIL MArkET

Belle Isle Station

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New Development

One of the good problems we have is that there

is limited existing space for many of the above

retailers; consequently, several are building

new stores from the ground up like Dick’s, LA

Fitness, and Hemispheres. But, it appears the

demand exists for new larger developments and

a handful are in the works. Most are either along

the Memorial Corridor or expansions of existing

developments. University Northpark is under

construction on a second phase that includes

HomeGoods, Michaels, and DSW along with

some more outparcels. University Northpark is

also actively pre-leasing the lifestyle portion of

their project which would add a more upscale

component to the overall development. Fritts

Farm is adding Hemisphere’s, LA Fitness, and

small shop space. Westgate Marketplace

has added a number of outparcels, but the

more interesting talk is of the development

moving to the land owned on the south side of

Interstate-40. The Outlet Shoppes of Oklahoma

just announced a 30,385 square foot expansion.

These expansions speak to the high occupancy

and strong sales of these existing developments.

Most of the proposed new projects are along the

Memorial Corridor which makes sense given the

concentration of retail there and the favorable

demographics. The most prominent is Chisholm

Creek, a large mixed-use development being

marketed by Medallion on Memorial between

Western and Pennsylvania. Memorial Plaza is

preleasing a two story retail/office project at the

southwest corner of May and Memorial. Dirt

work is underway on the Shops at North Village

on the southwest corner of 150th and May.

And, at least two other potential projects along

Memorial road are in some stage of development

but haven’t been announced.

In Edmond, Sam’s club in under construction at

Fox Lake, a development that will include some

small shop space. Raptor is marketing their

large mixed-use project at Interstate-35 & Covell.

Sam’s Club is also planning a Moore location.

Developers are also looking at land in Yukon

to add a large-scale development. The former

Target building on east Reno in Midwest City is

set to be re-positioned as a smaller mixed-use

development. While not all of these projects

will move forward, a number will in response

to demand from retailers for more space,

particularly along interstate corridors which is

the preferred location for many national tenants.

Plaza Mayor

Plaza Mayor at the Crossroads is Raptor’s

redevelopment of the 1 million square foot

Crossroads Mall. The Mall has partnered with

the Legaspi Co. to transform the mall into a

Hispanic oriented shopping and entertainment

center, tapping into the large and growing OKC

Hispanic market. Virtually all of Oklahoma City’s

growth identified in the last census came from

our Hispanic community, and, most assume the

census totals are understated. The Hispanic

market appears to be underserved by retail and,

as the broader market is now coming to realize,

the Hispanic shopper is quality conscience,

loyal, and has significant disposable income.

Plaza Mayor is poised to fill this market need

with service, shops and entertainment. Once

this re-positioning is in full swing, we’ll add the

project back to our survey. Currently, the mall is

preleasing and reporting good success.

OkC retail Market TotalsGLA SF Vacant SF Vacant %

27,526,513 2,463,299 8.95%

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University Northpark

Shopping Centers Larger Than 25,000 SF

Center Name Address Square Feet Price Price / PSF Buyer

Edmond Market Place 3319 S Boulevard, Edmond , OK 96,118 $4,400,000.00 $45.78 Local

Penn Crossing Shopping Center 2101 NW 23rd, OKC, OK 107,119 $9,000,000.00 $84.02 Local

Almonte Shopping Center 2938 SW 59th, OKC, OK 115,225 $1,500,000.00 $13.02 Local

Freestanding retail Larger Than 15,000 SF

Building Name Address Square Feet Price Price / PSF Buyer

Former Dillards 7000 S Crossroads, OKC, OK 193,538 $900,000.00 $4.65 Local

Petsmart 1921 S Broadway, Edmond , OK 25,280 $4,100,000.00 $162.18 Out of State

Office Depot 2724 NW Expressway, OKC, OK 19,312 $3,200,000.00 $165.70 Out of State

Garden Ridge 701 S MacArthur, OKC, OK 142,041 $9,790,000.00 $68.92 Out of State

Significant Shopping Center Sales over 12,000 SF

Building Name Address Square Feet Price Price / PSF Buyer

Santa Fe Strip Center 14501 N Santa Fe, OKC, OK 12,000 $1,245,000.00 $103.75 Local

Quail Springs Shoppes 2528 W Memorial Road, OKC, OK 17,372 $4,368,620.00 $251.47 Out of State

Sales volume was limited in the first half of the year with only three sales of Centers of over 25,000 square feet; two of which, Edmond Market

Place & Almonte, were distressed. All went to local buyers. We attribute the lack of sales to two primary factors: one, the continued inability

of sellers to replace returns; and, two, bank underwriting remains conservative, especially for deals with any risk. There are many more buyers

in the market than sellers. We’ve listed some of the significant big box and smaller strip center sales as those markets have been more active.

We anticipate continued sluggish sales for the remainder of the year with the recent run-up in interest rates also being a contributing factor.

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• Downtown retail growth remains limited and focused mainly on new restaurants, although 200 Park for Her, Native Roots, and the interest of Joseph A Bank are positives. Growth will continue to be incremental.

• A lot of attention has been given to new stores along 23rd street. To date, most of the growth has been local and restaurants. The Rise, just under development, should help solidify this new micro-market.

• Expect a significant sales tax bump in the second half of the year from storm related purchases.

• Most believe that a national tax on internet sales will be enacted this year in one form or another; this should help traditional retailers.

• Will Rogers World Airport has plans for a 400,000 to 600,000 square foot retail hub at southwest 74th and Portland, Lariet Landing. Nice plan, tough sell.

• The new Black Friday law should benefit Oklahoma consumers, allowing retailers to price products below their cost for up to 15 days in a row 10 times per year, these types of discounts are currently prohibited by Oklahoma law.

Oklahoma CityQuick Hits

OKCRetail MarketVacancy down to 8.95%

Submarket Map

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• US consumer confidence hit a 5-year high in May 2013.

• Restaurants are expected to account for 40 percent of all new retail tenancy in 2013 nationally.

• The best performing retailers are discounters and luxury goods – for the national market to fully recover, we’ll need to see the return of the middle market retailer.

• Per Chainlinks, national shopping center vacancy (all types) ended 2012 at 10.8 percent and should fall to the low 10 percent range this year. Expect rents to grow 5 percent or more.

• Chesapeake is marketing Nichols Hills Plaza for sale, perhaps to be closed by year-end. Classen Curve will most likely follow.

• Dean Mickey Hepner, UCO, sees potential ‘dark clouds’ on the Oklahoma economic horizon….citing stagnating sales tax collections and overall State general revenue being down.

• Costco is Lucy to OKC’s Charlie Brown. They keep looking for sites, but have yet to connect.

95% Occupancy in Centers Built Since

2000

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2013 Mid-Year Oklahoma City Retail Market SummaryNOrTh SuBMArkET

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Overall vacancy in this submarket ended June at a fairly strong 7.2 percent. Smaller centers and older centers in the market reflect a higher vacancy, typically 12 to 15 percent, but the larger centers and malls are highly occupied and drive the vacancy down. Much of the submarket vacancy is along May Avenue, the traditional shopping area of the submarket. Due to age of centers, changing demographics, and national retailers desire to locate along major highways, activity has gradually shifted away from areas like May Avenue.

National retailers first choice is generally ‘in or near Penn Square Mall’, but given its in-fill location, available space nearby is limited. Penn Square Mall is the leading mall in the state in terms of per square foot sales. Quail Springs Mall remains a good anchor to the Memorial Road Corridor and will be strengthened with the addition of Von Maur who will replace Sears when Sears vacates in the upcoming year. The two Chesapeake owned centers in this submarket, Nichols Hills Plaza & Classen Curve, are being marketed for sale, probably to a local buyer.

As noted in the Development section of our summary, most of the proposed new development of any size, whether in the pre-leasing or planning stages, is in this submarket along the Memorial Road Corridor. All national retailers want to be here, as evidenced by the 6.5 million square feet of space in the submarket. A number of small shop buildings are being added in this corridor, typically in front of large national retailers – these spaces are getting rents in the $27 to $32 per square foot range, very aggressive for our market. As the vacancy numbers suggest, there is little available space and we see sufficient demand to support a larger project or two. If you look at projects built in the last 15 years, occupancy is above 95 percent. It will be interesting to see which of the currently planned projects gain traction and become reality.

SuBMArkET SuMMAry

Construction North Leasing Agent Total Space Available Space Vacant Rate 1 Rate 2 Anchor TenantsRose Briar Center 100,000 50,000 50% $0.00 $0.00 Hemispheres

NW 140th & Pennsylvania Hobby Lobby

Construction North Totals 100,000 50,000 50%

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2013 Mid-Year Oklahoma City Retail Market SummaryNOrTh SuBMArkET

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North Class year Built Leasing Agent GLA Vacant Vac. % rate rate 2 Anchor Tenant50 Penn Place C 1973/1985/00 Newmark Grubb Levy Strange Beffort 86,802 67,391 77.64% $13.00 $0.00 Full Circle Books

NW 50th St & N Pennsylvania Ave Tim Strange Belle Isle Brewery

6900 Place D 1981/91/92 CBRE 49,263 16,250 32.99% $10.00 $15.00 Ted’s Cafe

6900 N May Ave Ryan Storer Subway

Belle Isle Station B 2000 Price Edwards & Company 433,333 4,927 1.14% $18.00 $24.00 Wal Mart Super Center

NW Expressway & N Classen Blvd Karleen Krywucki/Susan Brinkley/Laci Jackson/Ev Ernst

Old Navy, Nordstrom Rack

Britton Plaza Shopping Center E 1955/2000 Gerald Gamble Co. 27,340 2,550 9.33% $8.00 $8.00 Johnnies’ Charcoal Broiler

2648 W Britton Rd Gerald Gamble

Britton Square D 1983 Coury Properties 27,326 6,189 22.65% $10.00 $0.00 Kim Wah Restaurant

N May Ave & NW Britton Rd Steve Dodson Gourmet Yarn Company

Camelot Square C 1984 Blanton Property Co. 107,799 4,000 3.71% $0.00 $0.00 Cox Communications

NW 122nd St & N Pennsylvania Ave Jeff Bolding

Casady Square C 1953/83/95 Price Edwards & Company 158,764 20,377 12.83% $10.00 $14.00 CVS Pharmacy

W Britton Rd & N Pennsylvania Ave Laci Jackson/Susan Brinkley/Ev Ernst Wal Mart Neighborhood Market

Centennial Plaza B 1993 CBRE 233,794 0 0% $12.00 $16.00 Best Buy

NW 58th St & N May Ave Mark Inman Home Depot

Charter At May D 1963/88/96 The Boettcher Companies 99,757 14,433 14.47% $12.00 $15.50 Luby’s Cafeteria, Interior Fabrics

9494 N May Ave Fred Boettcher Bank of America, Tuesday Morning

Classen Curve C 2008 Blanton Properties 160,842 31,526 19.60% $0.00 $0.00 Balliet’s, Republic, Whole Foods

NW Grand Blvd & N Classen Blvd Tom Blanton Cafe 501, Anthropologie

Collonade Shops D 1984 Newmark Grubb Levy Strange Beffort 59,000 3,700 6.27% $12.00 $0.00 The Runner

9600 N May Ave Michael Almaraz Cafe Pranzo

Colonial Plaza C 2003 Eric Roberts 141,456 15,000 10.60% $8.00 $0.00 Homeland

9225 N May Ave Eric Roberts Cato

Country Club Corner D 1959/96 JAH Realty, LP 53,477 0 0% $16.00 $0.00 Sprouts

6410 N May Ave Jeff Norman/Ethan Slavin Half Price Books

Country Club Plaza D 1970/92/03 NAI Sullivan Group 38,436 2,000 5.20% $12.00 $12.00 Fitness Together

2800 W Country Club Dr Susan Davis Jordan Edward Jones, Heritage Trust

Cross Rock Shops E 2001 Medallion Management 24,578 3,355 13.65% $20.00 $20.00 ME/CU Credit Union

3521-3561 W Memoral Rd Whitney Ward McAlister’s Deli

Fenwick Plaza D 2009 Lease Space OKC 35,304 3,479 9.85% $12.00 $12.00

16524 N Pennsylvania Ave Gretchen Bybee

French Market Mall C 1985 CBRE 244,724 33,905 13.85% $0.00 $0.00 Bed Bath & Beyond

2850 NW 63rd St Mark Inman Staples

Gold’s Gym Center 1982/2008 Hawkins Companies 66,662 0 0% $12.00 $18.00 ATT Flagship Store

2301 W. Memorial Ryan Manteuffel Gold’s Gym

Highland Park Retail Center D 2009 CBRE 35,228 3,607 10.24% $18.00 $0.00 Louie’s

W 178th St & N Western Ave Stuart Graham The Sushi Bar

Lakehurst Plaza D 1978/95 CBRE 32,637 1,600 4.90% $10.50 $0.00 Gulfport Sea Food

8025 N May Ave Daniel Morris Movement Innovations Dance

Lakeside Shops Shopping Center D 1950/99/07 Pippin Properties 68,220 11,899 17.44% $10.00 $12.00 Firestone

7500 N May Ave Shirley Prophet Freddy’s Frozen Custard

Lakewood Shopping Center D 1980 Price Edwards & Company 55,247 21,986 39.80% $0.00 $0.00 Bernina Sewing Center

6901 N May Ave Karleen Krywucki Stork Land & Kids Too

Mayfair Place D 1978 Price Edwards & Company 95,000 10,177 10.71% $10.00 $12.00 Akin’s Health Foods

2900 NW 63rd St Karleen Krywucki PetsMart, Big Lots

Memorial Square C 2006 CBRE 225,000 4,000 1.78% $20.00 $20.00 Super Target

13730 N Pennsylvania Mark Inman/Stuart Graham PF Chang’s

Midland Center C 1961 Price Edwards & Company 54,272 3,503 6.45% $0.00 $0.00 Conn’s

NW Expressway & Independence Susan Brinkley/Ev Ernst/Laci Jackson Panera Bread

Nichols Hills Plaza C 1963 Chesapeake Energy 130,000 1,451 1.12% $14.00 $16.00 Saturn Grill, CK & Company

6501 Avondale Dr Jeff Anderson Starbucks

North Penn Plaza D 1970/71 Steve Hetherington 32,000 0 0% $0.00 $0.00 Koslow’s Furs

5601 N Pennsylvania Ave Steve Hetherington Bank of The West

North Pointe Shoppes D 2002 Price Edwards & Company 37,684 0 0% $15.00 $0.00 Chase Bank

W Memorial Rd & N May Ave Phillip Mazaheri Jimmys Egg

Northpark Mall C 1971/81 Morris Enterprises 200,000 35,000 17.50% $13.00 $0.00 B.C. Clark

12100 N May Ave Kevyn Colburn Rococco’s

Penn Square Mall A 1960/88 Simon Property Group 1,057,000 0 0% $0.00 $0.00 Apple

1901 NW Expressway Jeff Dozier Macy’s

Penn-Hefner Plaza D 1973/77 69,392 0 0% $12.00 $12.00 Buy For Less

2121 W Hefner Rd Hank Binkowski Beauty World

Quail Plaza C 1965/89/91 Morris Enterprises 144,335 45,000 31.18% $10.00 $13.00 Old School Bagel

10950 N May Ave Kevyn Colburn Goodyear Tire

Quail Springs Mall A 1980/98/99 General Growth Mgmt.,Inc. 1,140,038 24,000 2.11% $0.00 $0.00 Macy’s

W Memorial Rd & N Pennsylvania Ave Kelly Waswo JC Penney

Quail Springs MarketPlace B 1998 Bayer Properties 410,613 1,900 0.46% $20.00 $0.00 Old Navy, Ross, Michaels

W Memorial Rd & N Pennsylvania Ave Mary Beyer Lell Office Depot, Ulta

Quail Springs Village E 1983 JAH Realty, L.P. 26,350 0 0% $16.00 $20.00 RadioShack

13801 N Pennsylvania Ave Ethan Slavin Pier 1 Imports

Quail Village D 1983 Newmark Grubb Levy Strange Beffort 49,845 5,421 10.88% $18.50 $20.00 Cafe 7

14101 N May Ave John Cohlmia Coolgreens

Shops at Quail Springs 2012 Blanton Properties 87,282 8,755 10.03% $28.00 $0.00 Dick’s Sporting Goods

NW 146th & Pennsylvania Tom Blanton Petco

Shops at the Veranda B 2006 Irish Realty 30,650 18,000 58.73% $17.00 $18.00 Walgreens

150th St & N Western Ave Shannon Foreman

Spring Creek North D 1981 JAH Realty, L.P. 89,006 8,960 10.07% $14.00 $12.00 CVS Pharmacy

12200 N May Ave Ethan Slavin Homeland

The Plaza at Quail Springs E 2005 JAH Realty, L.P. 104,001 0 0% $14.00 $0.00 Fabrics Unlimited

2221 NW 138th St Ethan Slavin Dollar Tree

Town & Country Shopping Center D 1982/92 CBRE 43,491 1,750 4.02% $10.00 $12.00 Backwoods

12335 N May Ave Mark Inman/Ryan Storer/Stuart Graham Subway, At the Beach

Village at Quail Springs C 2004 Inland Companies 100,404 0 0% $0.00 $0.00 Gordmans

2201 W Memorial Rd Jason Kasal Best Buy

Village Park South E 1972 NAI Sullivan 22,573 1,600 7.09% $7.00 $10.00 Relax the Back

10405 N May Ave Lee Bolinger Fedex

Village Plaza D 1964/73/89 NAI Sullivan 47,580 2,400 5.04% $8.00 $0.00 Westlake Hardware

1501 - 1529 W Britton Rd David Hartnack Dollar General

Wilshire Village E 1986 Dr. Scott Samara,M.D. 27,000 25,890 95.89% $11.00 $12.00 Dodson Art Gallery

W Wilshire Blvd & N Western Ave Dana Makeup Bar

North Totals 6,463,505 465,981 7.21%

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Northwest Oklahoma City saw significant improvement with the demolition of the mostly vacant West Park Mall; Tapp Development is building a Walmart Neighborhood Market on the site. This change led vacancy to drop to 14.7 from 17.2 at year-end 2012. Most of the retail product is established neighborhood shopping centers with little new product. For many retailers, this market is their second or third choice. This is reflective of the area demographics and the distressed condition of some of these properties: the northwest submarket is characterized by established neighborhoods with limited population growth and relatively unchanged demographics.

There is a sizable gap in performance between these older, poorly maintained and often ill-configured centers and the newer, well-positioned centers like Silver Springs Crossing and Rockwell Plaza. The outlook for this submarket is more of the same with no significant improvement in the overall numbers but the current high-performers continuing to do well. No significant new development is anticipated anytime soon.

2013 Mid-Year Oklahoma City Retail Market SummaryNOrThWEST SuBMArkET

Former West Park Mall Site

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2013 Mid-Year Oklahoma City Retail Market SummaryNOrThWEST SuBMArkET

Northwest Class Year Built Leasing Agent GLA Vacant Vac % Rate Rate 2 Anchor Tenant122nd & MacArthur D 1985 Newmark Grubb Levy Strange Beffort 34,000 3,100 9.12% $5.00 $10.00 Dollar GeneralNW 122nd St & N MacArthur Blvd John CohlmiaBrixton Square C 1985 GBR Properties, Inc. 122,042 4,414 3.62% $10.00 $13.00 Clear Sight7101 NW Expressway Bob Parker Party GalaxyCornerstone Plaza D 58/78/2003 NAI Sullivan Group 65,285 3,450 5.28% $5.76 $10.56 Family Dollar, City BitesNW 39th St & N MacArthur Blvd David Hartnack Ocean Dental Council Crossing C 1986/92/03 NAI Sullivan Group 141,049 59,513 42.19% $12.50 $3.75 Goodwill8101 NW Expressway David Harnack Chelino’sCourtyard Plaza D 1984 CBRE 38,998 7,710 19.77% $14.00 $15.00 Knockouts Haircuts6401 NW Expressway Ryan Storer At The BeachLakeshore Shopping Center C 2002 Oxford Group 139,447 28,245 20.26% $0.00 $0.00 Academy Sporting Goods4200 NW Expressway Gaby Villarreal Planet FitnessLakeshore Shops D 1998 Charles Shadid 33,140 3,000 9.05% $5.00 $8.00 Freedom Pawn7930 N MacArthur Blvd Charles Shadid Al’s BicyclesMacArthur Shops E 1983 Core Real Estate 23,645 2,800 11.84% $9.00 $0.00 MacArthur Dental W Britton Rd & N MacArthur Blvd Jim Sanders Farmers InsuranceMarket Place OKC C 1985 Newmark Grubb Levy Strange Beffort 178,854 36,044 20.15% $12.00 $10.00 Bike One, Vatterott College5501 NW Expressway Louis Almaraz SubwayMarket Plaza C 1981/82 CBRE 151,439 42,347 27.96% $7.00 $11.50 Tuesday Morning, ALDI7001 NW Expressway Mark Inman/Ryan Storer Westlake HardwareMayFair Village C 1948/90 Price Edwards & Company 174,911 58,080 33.21% $14.00 $10.00 Michael’sNW 50th St & N May Ave Susan Brinkley/Ev Ernst/Laci Jackson SteinmartNewport E 1972 Charles Shadid 25,740 1,800 6.99% $5.00 $6.00 7-Eleven9120 N MacArthur Blvd Charles Shadid Sunshine LaundryOKC Market Square C 1983/00 Price Edwards & Company 143,579 24,588 17.13% $7.00 $9.00 Family Leisure8400 NW Expressway Susan Brinkley/Laci Jackson/Ev Ernst TJ MaxxPeppertree Square D 1984 Newmark Grubb Levy Strange Beffort 77,938 23,714 30.43% $7.00 $9.00 Allstate6444 NW Expressway Jim RosePortland Plaza C 1994 JAH Realty, L.P. 103,312 52,713 51.02% $15.00 $8.00 Locke SupplyNW 39th St & N Portland Ave Ethan SlavinQuailbrook Center D 1987 Price Edwards & Company 90,389 0 0% $15.00 $0.00 Panera Bread4401 W Memorial Rd Phillip Mazaheri Mercy Health SystemRock Center E 1984 Newmark Grubb Levy Strange Beffort 29,000 6,000 20.69% $10.00 $10.50 H&R Block6710 NW Expressway John Colimia Express Tag AgencyRockwell Crossing E 1986 CBRE 30,200 5,250 17.38% $14.00 $12.00 First Class Learning12200 N. Rockwell Stuart Graham Pizza HutRockwell Northwest C 1984/99 JAH Realty, L.P. 163,000 22,337 13.70% $20.00 $12.00 Hobby Lobby7000 NW Expressway Ethan Slavin Chick-Fil-ARockwell Plaza B 1981/2000 Inland Companies 414,507 9,428 2.27% $10.00 $18.00 Target8375 N Rockwell Ave Phillip Menolascina Ross Dress for Less, PetsmartSilver Springs Pointe B 2000 CBRE 700,000 5,500 0.79% $15.00 $0.00 Wal Mart 7640 NW Expressway Stuart Graham/Ryan Storer Home DepotSpringbrook D 1968 Newmark Grubb Levy Strange Beffort 50,000 20,000 40% $12.00 $8.00 10 Gym Fitness6207 NW Expressway Louis AlmarazSpringdale C 1961/86/93/99 Grace Commercial 126,000 14,438 11.46% $7.50 $7.50 Supermercado MoralesNW 50th St & N Meridian Ave Mary R. Grace/Larry Emmer Dollar GeneralWalnut Village D 1986/00 Newmark Grubb Levy Strange Beffort 53,850 8,850 16.43% $15.00 $0.00 Fortune ChineseNW 122nd St & N Rockwell Ave Michael Almaraz ReMaxWarr Acres Shops D 1950/94 William Choi 34,400 0 0% $7.00 $0.00 Big Red ShopNW 50th St & N MacArthur Blvd William ChoiWarwick D 1985 Ta Enterprises 69,433 30,400 43.78% $8.00 $0.00 Crest 11122 N Rockwell Ave Moon Ta Dollar GeneralWarwick Crossing D 1995 NAI Sullivan Group 31,804 13,764 43.28% $7.00 $0.00 SWAT Batting CagesW Hefner Rd & N Rockwell Ave David Hartnack FX SalonWarwick Plaza D 1984 Newmark Grubb Levy Strange Beffort 69,433 1,500 2.16% $11.00 $11.00 SubwayNW 122nd St & N MacArthur Blvd Jim Rose Eden SalonNorthwest Totals 3,315,395 488,985 14.75%

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SOUTH OKC SUBMARKETVACANCY

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The South Oklahoma City submarket saw significant improvement during the first half of the year, vacancy declined to 9.7 percent from 13.0 percent. The improvement was fairly broad-based but the magnitude of the gain was primarily due to the improved occupancy of Shields Plaza and Almonte Shopping Center. The Almonte gain, an older, long-vacant center on 59th street, was due to the library system leasing space in the center. The south submarket is comprised of predominantly neighborhood centers and stand-alone buildings. This submarket saw a significant number of big box vacancies, most of which have been filled at this point. Much attention has been paid to the I-240 corridor with the Envision 240 efforts, Will Rogers Airport’s Lariet Landing plans, and the re-positioning of Crossroads Mall as Plaza Mayor. Retailers along this corridor tend to do quite well which is not always the perception since the corridor is somewhat fragmented among uses and is not the most shopper friendly (or attractive) area. The long-term success of the Envision 240 effort to perhaps create a Business Improvement District to clean, beautify and make the area more appealing is important to the long-term growth of the area.

Plaza Mayor, briefly profiled in the summary, has the potential to transform the east end of this corridor and be a retail force for years to come. So, while we do not see any major new projects in this submarket in the near-term, the planned improvements, incremental growth and Plaza Mayor should further strengthen the area.

2013 Mid-Year Oklahoma City Retail Market SummarySOuTh SuBMArkET

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2013 Mid-Year Oklahoma City Retail Market SummarySOuTh SuBMArkET

South Class year Built Leasing Agent GLA Vacant Vac % rate 1 rate 2 Anchor Tenants

29th & Kentucky Shops D 1970 L & S Real Estate 32,500 0 0% $4.00 $0.00 Family Dollar

SW 29th St & S Kentucky Ave Young Shin New Century Food

74 South Centre D 1973/77/06 Paul B. Odom Construction 50,000 1,400 2.80% $12.00 $14.00 Pancho’s Mexican Restaurant

SW 74th St & S Pennsylvania Ave Linda Brown At the Beach

89’er Plaza E 1984 Robert Jenks 30,000 5,500 18.33% $4.00 $0.00 Body Beautiful

SW 89th St & S Walker Ave Robert Jenks Sharp Cleaners

Airline C 1999 Charles Shadid 121,368 7,000 5.77% $3.00 $5.00 Tom’s Tires

3400 SW 29th St Charles Shadid El Rodeo Carnecaria

Almonte Square C 1963 Blanton Property Co. 107,676 43,785 40.66% $0.00 $0.00 Oklahoma Metropolitan Library

6100 S May Ave Jeff Bolding

Brookwood North I & II D 1998 Charles Shadid 58,249 1,700 2.92% $5.00 $7.00 China Wok Restaurant

SW 89th St & S Western Ave Charles Shadid Chelino’s Restaurant

Brookwood Shopping Center C 1972/2011 Precor Ruffin, LLC 110,087 26,926 24.46% $12.00 $16.00 Planet Fitness

SW 89th St & S Western Ave Rick Pritchett Leslie’s Pool

Centre 8400 E 1984 Precor Ruffin, LLC 29,355 1,560 5.31% $9.00 $9.00 H&R Block

8400 S Western Ave Rick Pritchett Citi Financial

Chatenay Square C 2001 PB Odom, III 114,115 5,300 4.64% $16.50 $0.00 Homeland

SW 104th St & Pennsylvania Ave PB Odom, III Panera Bread

Country Park Shopping Center D 1978 Jireh Properties 24,360 19,900 81.69% $6.00 $6.00 Value Thrift

5906 S Agnew Ave Jess Hwang Agnew Quick Trip

Crest Center C 2010 Newmark Grubb Levy Strange Beffort 96,000 5,214 5.43% $17.50 $20.00 Crest Foods

SW/C SW 104th & S. May John Cohlmia

Economy Square C 1963/98 Newmark Grubb Levy Strange Beffort 203,451 3,606 1.77% $18.00 $18.00 Buy For Less

SW 29th St & S May Ave Michael Almaraz/Louis Almaraz Walgreens

Grant Square C 1958/91/92 Price Edwards & Company 103,810 14,003 13.49% $8.00 $5.00 Family Dollar

SW 44th St & S Pennsylvania Ave Susan Brinkley/Laci Jackson/Ev Ernst Aaron Rents

Greenway Plaza D 1985 Newmark Grubb Levy Strange Beffort 117,251 11,622 9.91% $11.00 $0.00 Westlake Hardware

SW 119th St & S Western Ave Jim Rose Tuesday Morning

Hillcrest Shopping Center D N/A Blanton Property Co. 50,000 25,000 50% $0.00 $0.00 Dollar General

2100 SW 59th St Jeff Bolding Rent-A-Center

I-240 Penn Park C 2005 CBRE 242,023 9,625 3.98% $18.00 $0.00 Marshalls

1409 W I-240 Mark Inman PetsMart

Lightning Creek D 1985 Lightning Creek Complex 48,005 0 0% $8.00 $0.00 Costume Shop

8100 S Western Ave Debra Gutierrez

Marketplace E 2009 CBRE 28,676 0 0% $14.00 $17.50 Lemon Grass

SW 119th St & S Western Ave Ryan Storer Papa Murphys

Mayridge Shopping Center D 1956 Haydel Associates 38,000 0 0% $3.00 $4.00 Dollar General

SW 44th St & May Ave Buddy Haydel

Palagio Shops C 2005 Paul B. Odom Construction 49,003 2,550 5.20% $16.50 $0.00 Pizza Hut, Marble Slab

SW 104th St & S Western Ave Paul Odom III Fitness 19

Reding Shopping Center D 1972 JAH Realty, L.P. 69,488 10,000 14.39% $12.00 $7.00 El Chico

Grand Blvd & S Western Ave Ethan Slavin Little Caesars

Shields Plaza C 1972/85/9205/11 Zerby Interests 224,758 37,907 16.87% $6.00 $15.00 Langston’s Western Wear

SW 74th & S Shields Blvd Caleb Hill Burlington

South 240 1988 Newmark Grubb Levy Strange Beffort 25,000 0 0% $8.00 $0.00 Mediteranean Grill

7800 S Western Ave Jim Rose/Carl Archiniaco Rawson Music

South Meridian Plaza D 1983 Newmark Grubb Levy Strange Beffort 36,000 8,000 22.22% $12.00 $0.00 Waffle House

1100 S Meridian Ave Michael Almaraz

South Park D 1975 South Park 86,848 0 0% $0.00 $0.00 Dept. of Corrections

4500 S May Ave Henry Messiah Church Ministries

South Penn Plaza D 1984 Commercial OKC 90,000 15,875 17.64% $7.00 $12.00 Family Dollar

1620 SW 89th St Marc Weinmeister State Farm

Southeast Plaza C 1964 HGM Inv. 185,266 7,000 3.78% $4.50 $4.50 Buy For less

SE 44th St & S High Ave Russell Hunt, Jr. Family Dollar

Southern Hills C 1964/89/90 CBRE 202,247 5,729 2.83% $20.00 $18.00 Northern Tool

SW 74th St & S Pennsylvania Ave Ryan Storer/Stuart Graham Joe’s Crab Shack

Southwestern Plaza C 1962/87 Coldwell Banker 122,527 11,400 9.30% $7.00 $0.00 Cocina De Mino Restaurant

SW 59th St & S Western Ave Jack James Family Dollar

Stonebriar Shopping Center E 2005 Newmark Grubb Levy Strange Beffort 27,432 3,400 12.39% $14.00 $0.00 Studio Art Photography

13316 S Western Ave Jim Rose/Carl Archiniaco Allied Medical, Adams Chiropractic

Summit Pointe Plaza D 2008 Equity Commercial Realty 30,414 9,619 31.63% $13.00 $0.00 Louie’s

SW 89th St & S Western Ave Judy Hatfield

Towne South Center C 5/3/2006 Price Edwards & Company 130,000 0 0% $15.00 $15.00 On The Border

SW 74th St & S Walker Ave Phillip Mazaheri Chuck E Cheese

Walker Square C 1983 Precor Ruffin, LLC 100,430 14,978 14.91% $9.00 $14.00 El Mariachi Super Marcado

SW 59th St & S Walker Ave Rick Pritchett

Walnut Square C 1985 Price Edwards & Company 294,500 11,625 3.95% $9.00 $12.00 Big Lots, Hobby Lobby

2209 SW 74th St Laci Jackson/Susan Brinkley/Ev Ernst Conn’s

Westernview Center C 1958/78 Newmark Grubb Levy Strange Beffort 104,000 15,576 14.98% $8.00 $16.00 Taste of China

I-240 & S Western Ave Jim Rose

Westminster Village D 1986 Brady’s Properties 79,500 0 0% $8.00 $0.00 Westminster Executive Suite

10601 S Western Ave Ali Ghaniabadi

South Totals 3,462,339 335,800 9.70%

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The Edmond market vacancy improved to 10.1 percent at mid-year from 12.8 percent at year-end. Much of the improvement was due to Eagle Crest being purchased by an investor with the intent of re-developing the property into an office development. Consequently, we’ve taken it off our survey. The other Edmond property with significant vacancy, Edmond Marketplace (84 percent vacancy) has been purchased by a local investment group and is being remodeled, significant occupancy gains are expected in the next year. The overall Edmond vacancy drops to 7.3 percent without Edmond Marketplace. The majority of newer centers are less than 5 percent vacant.

Tight vacancy plus strong demographics are leading retailers and developers to the Edmond market, although some of the larger national developers believe they can service the Edmond market through their Memorial Corridor locations. Sam’s Club is nearing completion of its Fox Lake store; this site is set to add some small shop space on the north end. LA Fitness is preparing to break ground on its Danforth Road location. Potential larger developments appear to be gravitating toward north Interstate-35 as the population (and incomes) of Edmond move to the east. As noted in the general summary, Raptor is marketing its mixed-use development at Interstate-35 & Covell that will be next to the planned convention center & hotel complex. There’s been discussion of reviving the Interstate-35 and 15th street project but there is no activity at the moment. Overall, the outlook for Edmond is positive and modest gains in both occupancy and rents are anticipated over the next year.

2013 Mid-Year Oklahoma City Retail Market SummaryEDMOND SuBMArkET

Edmond Market Place

SuBMArkET SuMMAry

Edmond Class yar Built Leasing Agents GLA Vacant Vac % rate 1 rate 2 Anchor Tenants33rd & Boulevard D 1982 Lee Segal 49,400 0 0% $7.00 $0.00 Mardel’s

E 33rd St & S Boulevard St Lee Segal Family Dollar

Alta Mesa D 2008 JAH Realty, L.P. 30,908 0 0% $26.00 $0.00 Qdoba, Edward Jones

301 S Bryant Ave Ethan Slavin At the Beach

Berkshire Plaza D 2002 Cambridge Commercial 35,612 1,800 5.05% $13.00 $15.00 Office Depot

W 15th St & S Broadway Ed Martin Nhinja Sushi & Wok

Boulevard Village D 1985 Irish Realty 36,604 1,200 3.28% $8.00 $10.00 Pizza Hut

3404-3456 S Boulevard St Misty Doney Radio Shack

Broadway South D 1977 Newmark Grubb Levy Strange Beffort 61,524 0 0% $15.00 $0.00 Edmond Music

3320 S Broadway John Cohlmia Courtyard Antiques

Broadway Square C 1968/94 Land Run Commercial 93,488 3,179 3.40% $12.00 $14.50 City Bites

3601 S Broadway Jeremy Foraker

Bryant Square C 1973/92 Price Edwards & Company 274,930 13,490 4.91% $8.00 $16.00 Bed Bath & Beyond

E 2nd St& N Bryant Ave Susan Brinkley/Laci Jackson/Ev Ernst Steinmart

Danforth Plaza D 2003 Newmark Grubb Levy Strange Beffort 30,000 6,300 21% $8.00 $12.00 Payless Shoe Source

W Danforth Rd & S Sante Fe Ave Jim Rose/Carl Archiniaco

Danforth Square C 1999 Land Run Commercial 108,000 4,788 4.43% $12.00 $0.00 Twid’s

W Danforth Rd & S Kelly Ave Jeremy Foraker Star Steps

Edmond Crossing C 1995 Newmark Grubb Levy Strange Beffort 159,600 11,915 7.47% $12.00 $16.00 Homeland

24 E 33rd St Michael Almaraz TJ Maxx

Edmond Exchange B 2003 JAH Realty, L.P. 71,243 7,780 10.92% $16.00 $12.00 On the Border

3233 S Broadway Ethan Slavin Edible Arrangements

Edmond Market Place D 1981/82/90 Price Edwards & Company 96,112 80,747 84.01% $8.50 $16.00 Delta Cafe’

3301 S Boulevard Susan Brinkley Traditions

Edmond Plaza C 1964/89/05 Price Edwards & Company 158,373 1,350 0.85% $8.00 $14.00 Westlake Hardware

E 15th St & Broadway Ext. Susan Brinkley/Laci Jackson/Ev Ernst Fitness 19, Staples

Edmond Trails E 2007 Sooner Investment 25,215 0 0% $14.00 $12.00 YMCA of Edmond

289 S Santa Fe Ave Brad Goodwin Spinal Wellness Center

Homestead Plaza D 2003 Price Edwards & Company 39,000 5,979 15.33% $15.00 $0.00 Anytime Fitness

W Danforth Rd & N Santa Fe Ave Susan Brinkley Buffalo Wild Wings

Kelly Centre Shopping Center D 2003 Matrix 43,769 6,125 13.99% $12.00 $12.00 RCB Bank

610 S Kelly Ave David Lide Bell Tone Hearing Center

Kelly Plaza D 1984 Newmark Grubb Levy Strange Beffort 87,503 25,719 29.39% $10.50 $10.50 Colortyme

W Edmond Rd & S Kelly Ave Carl Archiniaco/Jim Rose Thrift Elite Store

Kickingbird Square C 1983/88 Newmark Grubb Levy Strange Beffort 110,000 1,165 1.06% $13.00 $0.00 Regal Cinema

1323 W Danforth Rd Jim Rose Interurban

Market Depot B 1965 Rick Allen PropertiesWestminster Real Estate/MIDCO

82,325 9,074 11.02% $0.00 $0.00 Charleston’s

3409 S. Broadway Rick Allen Sears

North Oaks D 1983/89 CBRE 70,672 20,797 29.43% $12.00 $10.00 Westlake Hardware

821 W Danforth Rd Mark Inman/Ryan Storer Dollar General

Oak Brook D 1982/92 Wiggin Properties 43,006 12,230 28.44% $10.00 $0.00 Homeland

218 S Santa Fe Ave Don Faulkner

Oxford Pointe Shops E 1986 Price Edwards & Company 26,600 1,750 6.58% $9.00 $10.00 The Archives

E 2nd St & S Bryant Ave Susan Brinkley The Vision Center

Pebble Creek D 2001 62,500 0 0% $18.00 $0.00 Kohl’s

W Danforth Rd & N Santa Fe Ave Dollar Tree

Shoppes On Broadway C 2008 Price Edwards & Company 160,000 17,275 10.80% $20.00 $22.00 Hobby Lobby

E 33rd St & S Broadway Susan Brinkley/Karleen Krywucki/Ev Ernst/Laci Jackson

IO Metro

Signal Shops LLC D 1986 Fotis Bargeliotes 35,000 1,800 5.14% $9.00 $10.00 Physician’s PM

1700 S Kelly Ave Fotis Bargeliotes Daylight Donuts

Spring Creek Plaza D 2000 Zerby Interests 63,000 3,200 5.08% $20.00 $23.00 Talbot’s, Ann Taylor Loft

E 15th St & S Bryant Ave Caleb Hill Panera Bread, Coldwater Creek

Spring Creek Village of Edmond D 2007 Prime Company 70,199 1,816 2.59% $20.00 $26.00 Legacy Bank

E 15th St & S Bryant Ave Paul Iser Louie’s

University Plaza 3 B 2000 Sooner Investment 400,000 1,200 0.30% $18.00 $0.00 Target Super Center

E 2nd St & S Bryant Ave Brad Goodwin Lowe’s

University Village II B 2000 Sooner Investment 76,500 2,800 3.66% $18.00 $22.00 Wal Mart Neighborhood Market

E 2nd St & S Bryant Ave Brad Goodwin Half Price Books

Uptown Grocery Center 2011 Esperanza Real Estate Investments 73,350 17,990 24.53% $20.00 $18.00 Uptown Grocery

1230 W. Covell Susan Binkoski

Willow Creek E 1985 Coury Properties 31,000 12,000 38.71% $13.00 $10.00 Edward Jones

E 2nd St & N Santa Fe Ave Steve Dodson Family Dentistry

Edmond Totals 2,705,433 273,469 10.11%

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2013 Mid-Year Oklahoma City Retail Market SummaryEDMOND SuBMArkET

Edmond Class yar Built Leasing Agents GLA Vacant Vac % rate 1 rate 2 Anchor Tenants33rd & Boulevard D 1982 Lee Segal 49,400 0 0% $7.00 $0.00 Mardel’s

E 33rd St & S Boulevard St Lee Segal Family Dollar

Alta Mesa D 2008 JAH Realty, L.P. 30,908 0 0% $26.00 $0.00 Qdoba, Edward Jones

301 S Bryant Ave Ethan Slavin At the Beach

Berkshire Plaza D 2002 Cambridge Commercial 35,612 1,800 5.05% $13.00 $15.00 Office Depot

W 15th St & S Broadway Ed Martin Nhinja Sushi & Wok

Boulevard Village D 1985 Irish Realty 36,604 1,200 3.28% $8.00 $10.00 Pizza Hut

3404-3456 S Boulevard St Misty Doney Radio Shack

Broadway South D 1977 Newmark Grubb Levy Strange Beffort 61,524 0 0% $15.00 $0.00 Edmond Music

3320 S Broadway John Cohlmia Courtyard Antiques

Broadway Square C 1968/94 Land Run Commercial 93,488 3,179 3.40% $12.00 $14.50 City Bites

3601 S Broadway Jeremy Foraker

Bryant Square C 1973/92 Price Edwards & Company 274,930 13,490 4.91% $8.00 $16.00 Bed Bath & Beyond

E 2nd St& N Bryant Ave Susan Brinkley/Laci Jackson/Ev Ernst Steinmart

Danforth Plaza D 2003 Newmark Grubb Levy Strange Beffort 30,000 6,300 21% $8.00 $12.00 Payless Shoe Source

W Danforth Rd & S Sante Fe Ave Jim Rose/Carl Archiniaco

Danforth Square C 1999 Land Run Commercial 108,000 4,788 4.43% $12.00 $0.00 Twid’s

W Danforth Rd & S Kelly Ave Jeremy Foraker Star Steps

Edmond Crossing C 1995 Newmark Grubb Levy Strange Beffort 159,600 11,915 7.47% $12.00 $16.00 Homeland

24 E 33rd St Michael Almaraz TJ Maxx

Edmond Exchange B 2003 JAH Realty, L.P. 71,243 7,780 10.92% $16.00 $12.00 On the Border

3233 S Broadway Ethan Slavin Edible Arrangements

Edmond Market Place D 1981/82/90 Price Edwards & Company 96,112 80,747 84.01% $8.50 $16.00 Delta Cafe’

3301 S Boulevard Susan Brinkley Traditions

Edmond Plaza C 1964/89/05 Price Edwards & Company 158,373 1,350 0.85% $8.00 $14.00 Westlake Hardware

E 15th St & Broadway Ext. Susan Brinkley/Laci Jackson/Ev Ernst Fitness 19, Staples

Edmond Trails E 2007 Sooner Investment 25,215 0 0% $14.00 $12.00 YMCA of Edmond

289 S Santa Fe Ave Brad Goodwin Spinal Wellness Center

Homestead Plaza D 2003 Price Edwards & Company 39,000 5,979 15.33% $15.00 $0.00 Anytime Fitness

W Danforth Rd & N Santa Fe Ave Susan Brinkley Buffalo Wild Wings

Kelly Centre Shopping Center D 2003 Matrix 43,769 6,125 13.99% $12.00 $12.00 RCB Bank

610 S Kelly Ave David Lide Bell Tone Hearing Center

Kelly Plaza D 1984 Newmark Grubb Levy Strange Beffort 87,503 25,719 29.39% $10.50 $10.50 Colortyme

W Edmond Rd & S Kelly Ave Carl Archiniaco/Jim Rose Thrift Elite Store

Kickingbird Square C 1983/88 Newmark Grubb Levy Strange Beffort 110,000 1,165 1.06% $13.00 $0.00 Regal Cinema

1323 W Danforth Rd Jim Rose Interurban

Market Depot B 1965 Rick Allen PropertiesWestminster Real Estate/MIDCO

82,325 9,074 11.02% $0.00 $0.00 Charleston’s

3409 S. Broadway Rick Allen Sears

North Oaks D 1983/89 CBRE 70,672 20,797 29.43% $12.00 $10.00 Westlake Hardware

821 W Danforth Rd Mark Inman/Ryan Storer Dollar General

Oak Brook D 1982/92 Wiggin Properties 43,006 12,230 28.44% $10.00 $0.00 Homeland

218 S Santa Fe Ave Don Faulkner

Oxford Pointe Shops E 1986 Price Edwards & Company 26,600 1,750 6.58% $9.00 $10.00 The Archives

E 2nd St & S Bryant Ave Susan Brinkley The Vision Center

Pebble Creek D 2001 62,500 0 0% $18.00 $0.00 Kohl’s

W Danforth Rd & N Santa Fe Ave Dollar Tree

Shoppes On Broadway C 2008 Price Edwards & Company 160,000 17,275 10.80% $20.00 $22.00 Hobby Lobby

E 33rd St & S Broadway Susan Brinkley/Karleen Krywucki/Ev Ernst/Laci Jackson

IO Metro

Signal Shops LLC D 1986 Fotis Bargeliotes 35,000 1,800 5.14% $9.00 $10.00 Physician’s PM

1700 S Kelly Ave Fotis Bargeliotes Daylight Donuts

Spring Creek Plaza D 2000 Zerby Interests 63,000 3,200 5.08% $20.00 $23.00 Talbot’s, Ann Taylor Loft

E 15th St & S Bryant Ave Caleb Hill Panera Bread, Coldwater Creek

Spring Creek Village of Edmond D 2007 Prime Company 70,199 1,816 2.59% $20.00 $26.00 Legacy Bank

E 15th St & S Bryant Ave Paul Iser Louie’s

University Plaza 3 B 2000 Sooner Investment 400,000 1,200 0.30% $18.00 $0.00 Target Super Center

E 2nd St & S Bryant Ave Brad Goodwin Lowe’s

University Village II B 2000 Sooner Investment 76,500 2,800 3.66% $18.00 $22.00 Wal Mart Neighborhood Market

E 2nd St & S Bryant Ave Brad Goodwin Half Price Books

Uptown Grocery Center 2011 Esperanza Real Estate Investments 73,350 17,990 24.53% $20.00 $18.00 Uptown Grocery

1230 W. Covell Susan Binkoski

Willow Creek E 1985 Coury Properties 31,000 12,000 38.71% $13.00 $10.00 Edward Jones

E 2nd St & N Santa Fe Ave Steve Dodson Family Dentistry

Edmond Totals 2,705,433 273,469 10.11%

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2013 Mid-Year Oklahoma City Retail Market SummaryWEST–CENTrAL SuBMArkET

Yukon Hills

The West Central submarket saw modest improvement in occupancy during the first half of the year; vacancy declined to 7.4 percent from 8.0 percent. Most of the improvement was occupied square footage added at Westgate Marketplace, primarily pad site buildings. Over the past 10 years, retail in the West Central submarket, particularly newer retail, has moved the retail center of the submarket to the Interstate-40 corridor. Westgate Marketplace, Yukon Village, West End Pointe and the Outlet Shops of Oklahoma comprise nearly half the total product in the submarket and an even higher percentage of sales. The corridor draws not only from the Interstate-40 traffic but from a large swath of homes north of Interstate-40 that have limited access to retail, particularly new retail. Incomes of the area aren’t great, but density is high. It is anticipated that this trend will continue with Westgate Marketplace expanding to the south side of Interstate-40. Developers are also exploring the feasibility of another project at the Garth Brooks and Interstate-40 intersection.

The Asian district along Classen continues to maintain a high occupancy; several smaller retail strip centers in the area have been remodeled over the past couple of years. The Interstate-40 and Portland area, home to 33 stores, containing over 1.6 million square feet that specialize in furniture and accessories, remains the hub of furniture sales for the City. For the first time in a long time, there is expansion in the furniture market, led by Mathis Brothers’ Sleep Studio concept and their Ashley Furniture stores. This expansion bears watching in relation to the performance of this traditional furniture market. As is typical in our market, much of the submarket vacancy is concentrated in older neighborhood centers in this market; these properties have been relatively stable over the past few years.

SuBMArkET SuMMAry

Construction West-Central Leasing Agent Total Space Available Space Vacant Rate 1 Rate 2 Anchor TenantsWest Pointe - Expansion 15,000 15,000 0% $0.00 $0.00 Gold’s Gym Express

W. Reno Ave. & N. Mustang Rd.

Construction West-Central Totals 15,000 0 0%

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2013 Mid-Year Oklahoma City Retail Market SummaryWEST–CENTrAL SuBMArkET

West-Central Class yar Built Leasing Agents GLA Vacant Vac % rate 1 rate 2 Anchor TEnants16th & Indiana D 2002 Charles Shadid 41,079 0 0% $3.00 $5.00 Discount Dollar Store

NW 16th St & N Indiana Ave Charles Shadid Bad Granny’s

36th & May Center C 1986 B.D. Eddie Enterprises 97,500 1,250 1.28% $9.00 $0.00 Pole Position Raceway

SW 36th St & S May Ave Terry McGuire

Ann Arbor Terrace E 1971 Newmark Grubb Levy Strange Beffort

30,000 10,740 35.80% $8.00 $0.00 Feria Latina Super Market

4913 NW 23 St Jim Rose Ultimate Thrift Store

Arvest Plaza D 1986/00 Ferguson Company 32,600 0 0% $10.00 $0.00 Arvest Bank

915-917 S Cornwell Dr Jim Ferguson

Chisholm C 1979/82 CBRE 232,510 41,735 17.95% $3.00 $16.00 CiCi’s

I-40 & Garth Brooks Blvd Ryan Storer/Stuart Graham Big Lots

DeVille Shopping Center 1962/92/94 CBRE 125,377 24,004 19.15% $3.00 $4.00 Buy For Less

2408 N. Council Road Ryan Storer Heart & Hand Thrift

Glen Oaks D 1968/98 JAH Realty, L.P. 49,161 8,270 16.82% $18.00 $6.00 Westlake Hardware

NW 23rd St & N Rockwell Ave Ethan Slavin Anytime Fitness

MacArthur Court D 1985 Newmark Grubb Levy Strange Beffort

51,283 21,300 41.53% $10.00 $13.50 Jersey Mikes

3804 N MacArthur Blvd Michael Almaraz Verizon

MacArthur Park D 1997 Charles Shadid 55,506 0 0% $5.00 $6.50 Community Thrift Store

2300 N MacArthur Blvd Charles Shadid Queen of Sheba Restaurant

Meridian Plaza D 1959 Newmark Grubb Levy Strange Beffort

89,656 13,669 15.25% $6.00 $0.00 James Lighting

NW 16th St & N Meridian Ave Jim Rose Dollar General

Mustang Shopping Center D 2004 CBRE 35,846 0 0% $16.00 $0.00 CATO

216 N Mustang Mall Terr Stuart Graham Dollar Tree

Mustang Trade Center C 1983 LandRun Commercial 106,850 0 0% $9.00 $7.00 Dollar General

Hwy 152 & S Mustang Rd. Jeremy Foracre Factory Connection

Old Mill D 1974 National Properties 82,730 1,200 1.45% $8.00 $0.00 Locke Supply

301 Elm Ave. Ray Wright

Outlet Shops of Oklahoma A 2010 Horizon Development 376,000 0 0% $0.00 $0.00 Nike, Brooks Brothers

NE C of 1-40 & Council Rd Curt Hammontree Coach Outlet, Anne Taylor Loft

Penn Crossing D 1994 Brady Properties 133,356 3,000 2.25% $9.00 $14.00 Wal Mart Neighborhood Market

NW 23rd St & N Pennsylvania Ave Ali Ghaniabadi FedEx Office

Plaza DeVille C 1970 Land Run Commercial 26,892 12,989 48.30% $7.00 $7.00 Allstate

2411 N. Council Road Chad Elmore Economy Dentures

Portland Square D 1958/87 Charles Johnson, DDS 38,000 0 0% $4.00 $0.00 Sam’s Wholesale Liquor

NW 23rd St & N Portland Ave Chuck Johnson OK Family Thrift

Rock Glen Center E 1994 Republic Commercial 25,308 1,200 4.74% $5.50 $0.00 Samaritan Services

1500 N Rockwell Ave Trayce Miller

Shartel Plaza D 1965 Pro Realty 40,736 0 0% $14.00 $0.00 CVS

5225 N Shartel Ave Greg Downs

Silver City Town Center D 1974/94 Price Edwards & Co 88,851 15,221 17.13% $10.00 $7.00 Tractor Supply

101 N Mustang Rd Susan Brinkley/Ev Ernst/Laci Jackson

Salvation Army

Ten-M D 1958/88/91 Joe LaBar 33,000 0 0% $7.00 $0.00 Summit Business System

NW 10th St & N Meridian Ave Joe LaBar Apple Tree Antique Mall

Walnut Creek D 1974 Charles Shadid 52,822 2,400 4.54% $3.00 $4.00 Thermo Roll Shutters

1110 N MacArthur Blvd Charles Shadid

West End Pointe B 2001 CBRE/OKLA 507,500 44,000 8.67% $20.00 $9.00 Lowe’s

I-40 & Garth Brooks Blvd Stuart Graham/RyanStorer Kohl’s

West Pointe Shoppes E 2006 McGee Investments 25,000 8,000 32% $16.00 $18.00 Human Performance Centers

W Reno Ave & N Mustang Rd Chris Reed

Westgate Marketplace A 2000 Zerby Interests 835,406 2,500 0.30% $28.00 $0.00 Wal Mart, Panera BreadHome Depot, Ulta

I-40 & S MacArthur Blvd Caleb Hill Dick’s Sporting Goods

Westoaks Village D 1964 Baker - First 93,270 0 0% $3.90 $3.90 Family Dollar

NW 10th St & N Rockwell Ave Cathy Riley

Will Rogers C 1982 Charles Shadid 160,000 25,250 15.78% $4.00 $6.00 Oriental Imports

3000 N Portland Ave Charles Shadid McSalty’s Pizza

Windsor Hills C 1960/98 Phillips Edison Co. 256,250 68,856 26.87% $6.50 $12.00 Crest Foods, Cato

4601 NW 23rd St Greg Clough Fitness 19

Windsor Park E 1982 Newmark Grubb Levy Strange Beffort

26,700 1,215 4.55% $10.00 $10.00 Ci Ci’s Pizza

2500 N Meridian Ave Jim Rose

Yukon Hills C 1978 JAH Realty, L.P. 127,200 11,800 9.28% $15.00 $8.00 Cross Trainers Fitness

S Cornwell Dr & E Vandament Ave Ethan Slavin Buy For Less

Yukon Shopping Center D 2005 Schostak Brothers & Company 211,500 1,600 0.76% $14.00 $0.00 Dollar Tree

I-40 & Garth Brooks Blvd Rebecca Dragin Cato

Yukon Village C 2009 Gulf Coast Commercial Group 275,000 1,807 0.66% $0.00 $0.00 Target

I-40 & Garth Brooks Blvd Danny Miller PetsMart

West-Central Totals 4,362,889 322,006 7.38%

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20132012201120102009

MOORE−NORMAN SUBMARKET VACANCY

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Brookhaven

Construction Moore / Normanl Leasing Agent Total Space Available Space Vacant Rate 1 Rate 2 Anchor TenantsFritt’s Farm - Expansion 100,000 0 0% $0.00 $0.00 Hemisphere’s, LA Fitness

W. Reno Ave. & N. Mustang Rd. Small Shop Space

University Northpark - Expansion Sooner Development 160,000 10,000 6.25% $0.00 $0.00 Home Goods, Crest, DSW

NA Michael’s, Zoie’s Kitchen, Chuck-E-Cheese

Construction West-Central Totals 260,000 10,000 3.85%

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2013 Mid-Year Oklahoma City Retail Market SummaryMOOrE–NOrMAN SuBMArkET

Moore and Norman both continue to be areas retailers want to be and that is reflected in our survey numbers. The mid-year vacancy of the submarket was a strong 5.4 percent. While all sizes of projects typically do well in these markets, the driving force of activity are University North Park in Norman and the 149th and Interstate-35 intersection in Moore. University North Park developers, after selling the original development to Inland last year, are under construction with a new phase that includes HomeGoods first store in the metro, DSW, and Michaels. The Crest store is under construction as well. It is believed that progress is being made on the pre-leasing for the delayed lifestyle portion of UNP that could include a department store and more upscale tenants. Sooner Mall is virtually full and continues to generate good sales. Brookhaven Village has added White House/Black Market and Charming Charlies to their line-up. Parkway Plaza has had a vacant junior anchor space for some time, but there is little weakness in the market.

Moore is seeing more expansion as well, with Hemisphere’s under construction at Fritts Farm and LA Fitness to follow. On the opposite side of the same intersection, Sam’s Club is expected to demolish an existing call center and start construction soon. There have been a number of new strip centers and outparcels that have garnered top of the market rents. Camden Plaza on 149th was significantly damaged by the recent Moore tornado and we’ve taken it off the survey until it is re-built.

The strong performance should continue; most of the space being added is already pre-leased. As previously noted, there is the possibility of a new larger development in this submarket but the rapid expansion of existing projects will most likely preclude any such addition for now.

SuBMArkET SuMMAry Moore-Norman Class year Built Leasing Agent GLA Vacant Vac % rate 1 rate 2 Anchor Tenants1024 N Flood D 1960 NAI Sullivan Group 37,000 27,000 72.97% $8.00 $0.00

1024 N Flood David Hartnack

Alameda Square D 1984 Price Edwards & Company 93,858 18,291 19.49% $14.00 $10.00 Gold’s Gym

12th Ave SE & E Alameda St Brandy Rundel Dollar Tree

Anatole D 1985 Equity Commercial Realty 64,555 0 0% $0.00 $0.00 Harbor Freight Tools

12th Ave SE & E Alameda St Gayla Artman Sherwin Williams

Broadway Plaza D 2004 Price Edwards & Company 31,588 6,397 20.25% $11.00 $0.00 Home Creation

2200 N Broadway St Susan Brinkley

Brookhaven Village C 1985 Price Edwards & Company 153,277 28,782 18.78% $0.00 $0.00 Chico’s, White House/Black Market

36th Ave NW & W Robinson St Brandy Rundel The Health Club, Charming Charlie’s

Campus Corner Shops C 1911/93 Equity Commercial Realty, LLC 225,000 7,800 3.47% $18.00 $18.00 OU Authentic

301 W Boyd St Judy Hatfield Louie’s, Lucca

Carriage Plaza E 1983 Gus Gianos Family Partnership 25,500 0 0% $0.00 $0.00 The Webb

2001 W Main St Peter Gianos Cayman’s

Center on Main C 1965 Heather O’Connell 107,000 0 0% $0.00 $0.00 Firestone

500 Main St Heather O’Connell Sprouts

Colonial Estates C Ren. 1988 CBRE/OKLA 104,225 20,340 19.52% $9.00 $0.00 Buy for Less

12th Ave SE & E Lindsey St Ryan Storer/Stuart Graham Dollar General

East Moore Shopping Center D 2006 Grace Commercial 24,484 0 0% $8.50 $0.00 Dollar General

406 S Eastern Ave Mary Grace/Larry Emmer Cleveland Co. Health Dept.

Empire Plaza D 2006 DGM Real Estate Services 30,000 4,470 14.90% $12.00 $14.00 Subway

3040- 3058 Classen Blvd Dana L. Hare Athletic Loft

Fritts Farm A 2006/12 TBP LLC Development 353,550 0 0% $24.00 $26.00 Home Depot

SW 19th Street & Telephone Rd Terry Fritts Target; Dick’s Sporting Goods

Heisman Square D 1999 CBRE 93,000 7,150 7.69% $13.00 $15.00 Homeland

12th Ave SE & E Alameda St Stuart Graham At the Beach

Hollywood Center C 1964 Capitol Realty 127,600 0 0% $0.00 $0.00 Homeland

1600 W Lindsey St Hancock Fabric

Malibu Shopping Center E 2005 Gerald Gamble Co. 21,500 5,075 23.60% $9.00 $9.00 Advance America Cash

824 NW 12th St Gerald Gamble Armstrong McCall

Merkle Creek D 1985 Equity Commercial Realty, LLC 33,753 10,860 32.17% $9.00 $13.50 Play It Again Sports

2203 W Main St Gayla Artman World Acceptance Corporation

Moore Towne Center D 2005 Domain Commercial, LLC 35,000 1,295 3.70% $22.00 $0.00 McAlester’s

I-35 & SW 19th St Micah Alcorn Mazzios Pizza

New City Center C 1963/98 Precor Ruffin, LLC 181,170 28,382 15.67% $7.00 $10.00 Supermercados Morelos

605 N Moore Ave. Rick Pritchett Hymalaya’s

Normandy Creek C 1974 Raptor Properties 107,366 10,714 9.98% $10.00 $12.00 Hastings Books

2200 W Main St Heidi Vanlandingham Party Galaxy

Parkway Plaza B 1996 Equity Commercial Realty 375,000 21,934 5.85% $19.00 $19.00 Barnes & Noble

Ed Noble Parkway Judy Hatfield Bed Bath & Beyond

Riverwalk Centre E 2000 American Asset Management 159,127 0 0% $16.00 $0.00 Maurice’s

I-35 & SW 19th St Jon Hattis Gordman’s

Riverwalk Plaza E 2000 Precor Ruffin, LLC 26,939 1,373 5.10% $15.00 $15.00 Midwest Regional Hospital

2109-2139 Riverwalk Dr Rick Pritchett Integris Physical Therapy

Riverwalk Shops D 2006 CBRE 34,200 2,280 6.67% $20.00 $20.00 Alfredo’s

2713 Service Rd Ryan Storer/Stuart Graham

Robinson Crossing C 1986/89 Brady’s Properties 118,000 11,991 10.16% $10.00 $12.00 Dollar Six Movies

1300 N Interstate Dr Ali Ghaniabadi Papa Murphy’s

Silver Leaf D 1985 Bright Star Realty 88,097 0 0% $0.00 $0.00 Silver Leaf Furniture

NE 12th St & N Eastern Ave Sun Lee Family Dollar

Sooner Mall B 1976/88/99 General Growth Properties 503,851 0 0% $0.00 $0.00 Dillard’s

I-35 & W Main St Steve Hughes Sears

Sooner Shopping Center D 1966 Buchanan Realty 50,000 849 1.70% $8.48 $0.00 Moore Tag Agency

NW 5th St & N Broadway St Steve Buchanan

Sooner West Plaza D 1981 Equity Commercial Realty, LLC 64,500 6,000 9.30% $16.50 $18.50 Wright’s IGA

36th Ave SW & W Main St Gayla Artman Tuesday Morning

Stubbeman Village E 1972 Equity Commercial Realty, LLC 33,475 0 0% $15.50 $0.00 Chapala Mexican Grill

Elm Ave & Elmwood Dr Judy Hatfield Ratcliff’s Bookstore

The Main Center D 2005 HEW Marketing, Inc. 106,307 0 0% $9.00 $9.00 Hobby Lobby

N Flood Ave & W Main St Heather Warrington Mardel’s

The Shops At Moore C 2007 CBRE 568,679 29,531 5.19% $18.00 $24.00 Office Depot, JC Penney

I-35 & SE 19th St Mark Inman Best Buy

University North Park B 2008 CBRE/OKLA 849,617 9,300 1.09% $17.00 $22.00 Kohl’s, Target

I-35 & W Robinson St Mark Inman Academy

West Port Shopping Center D 1980 40,898 3,600 8.80% $10.50 $14.50 Moore Family Clinic

1200 N Santa Fe Ave GFF Foods

Moore-Norman Totals 4,868,116 263,414 5.41%

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Moore-Norman Class year Built Leasing Agent GLA Vacant Vac % rate 1 rate 2 Anchor Tenants1024 N Flood D 1960 NAI Sullivan Group 37,000 27,000 72.97% $8.00 $0.00

1024 N Flood David Hartnack

Alameda Square D 1984 Price Edwards & Company 93,858 18,291 19.49% $14.00 $10.00 Gold’s Gym

12th Ave SE & E Alameda St Brandy Rundel Dollar Tree

Anatole D 1985 Equity Commercial Realty 64,555 0 0% $0.00 $0.00 Harbor Freight Tools

12th Ave SE & E Alameda St Gayla Artman Sherwin Williams

Broadway Plaza D 2004 Price Edwards & Company 31,588 6,397 20.25% $11.00 $0.00 Home Creation

2200 N Broadway St Susan Brinkley

Brookhaven Village C 1985 Price Edwards & Company 153,277 28,782 18.78% $0.00 $0.00 Chico’s, White House/Black Market

36th Ave NW & W Robinson St Brandy Rundel The Health Club, Charming Charlie’s

Campus Corner Shops C 1911/93 Equity Commercial Realty, LLC 225,000 7,800 3.47% $18.00 $18.00 OU Authentic

301 W Boyd St Judy Hatfield Louie’s, Lucca

Carriage Plaza E 1983 Gus Gianos Family Partnership 25,500 0 0% $0.00 $0.00 The Webb

2001 W Main St Peter Gianos Cayman’s

Center on Main C 1965 Heather O’Connell 107,000 0 0% $0.00 $0.00 Firestone

500 Main St Heather O’Connell Sprouts

Colonial Estates C Ren. 1988 CBRE/OKLA 104,225 20,340 19.52% $9.00 $0.00 Buy for Less

12th Ave SE & E Lindsey St Ryan Storer/Stuart Graham Dollar General

East Moore Shopping Center D 2006 Grace Commercial 24,484 0 0% $8.50 $0.00 Dollar General

406 S Eastern Ave Mary Grace/Larry Emmer Cleveland Co. Health Dept.

Empire Plaza D 2006 DGM Real Estate Services 30,000 4,470 14.90% $12.00 $14.00 Subway

3040- 3058 Classen Blvd Dana L. Hare Athletic Loft

Fritts Farm A 2006/12 TBP LLC Development 353,550 0 0% $24.00 $26.00 Home Depot

SW 19th Street & Telephone Rd Terry Fritts Target; Dick’s Sporting Goods

Heisman Square D 1999 CBRE 93,000 7,150 7.69% $13.00 $15.00 Homeland

12th Ave SE & E Alameda St Stuart Graham At the Beach

Hollywood Center C 1964 Capitol Realty 127,600 0 0% $0.00 $0.00 Homeland

1600 W Lindsey St Hancock Fabric

Malibu Shopping Center E 2005 Gerald Gamble Co. 21,500 5,075 23.60% $9.00 $9.00 Advance America Cash

824 NW 12th St Gerald Gamble Armstrong McCall

Merkle Creek D 1985 Equity Commercial Realty, LLC 33,753 10,860 32.17% $9.00 $13.50 Play It Again Sports

2203 W Main St Gayla Artman World Acceptance Corporation

Moore Towne Center D 2005 Domain Commercial, LLC 35,000 1,295 3.70% $22.00 $0.00 McAlester’s

I-35 & SW 19th St Micah Alcorn Mazzios Pizza

New City Center C 1963/98 Precor Ruffin, LLC 181,170 28,382 15.67% $7.00 $10.00 Supermercados Morelos

605 N Moore Ave. Rick Pritchett Hymalaya’s

Normandy Creek C 1974 Raptor Properties 107,366 10,714 9.98% $10.00 $12.00 Hastings Books

2200 W Main St Heidi Vanlandingham Party Galaxy

Parkway Plaza B 1996 Equity Commercial Realty 375,000 21,934 5.85% $19.00 $19.00 Barnes & Noble

Ed Noble Parkway Judy Hatfield Bed Bath & Beyond

Riverwalk Centre E 2000 American Asset Management 159,127 0 0% $16.00 $0.00 Maurice’s

I-35 & SW 19th St Jon Hattis Gordman’s

Riverwalk Plaza E 2000 Precor Ruffin, LLC 26,939 1,373 5.10% $15.00 $15.00 Midwest Regional Hospital

2109-2139 Riverwalk Dr Rick Pritchett Integris Physical Therapy

Riverwalk Shops D 2006 CBRE 34,200 2,280 6.67% $20.00 $20.00 Alfredo’s

2713 Service Rd Ryan Storer/Stuart Graham

Robinson Crossing C 1986/89 Brady’s Properties 118,000 11,991 10.16% $10.00 $12.00 Dollar Six Movies

1300 N Interstate Dr Ali Ghaniabadi Papa Murphy’s

Silver Leaf D 1985 Bright Star Realty 88,097 0 0% $0.00 $0.00 Silver Leaf Furniture

NE 12th St & N Eastern Ave Sun Lee Family Dollar

Sooner Mall B 1976/88/99 General Growth Properties 503,851 0 0% $0.00 $0.00 Dillard’s

I-35 & W Main St Steve Hughes Sears

Sooner Shopping Center D 1966 Buchanan Realty 50,000 849 1.70% $8.48 $0.00 Moore Tag Agency

NW 5th St & N Broadway St Steve Buchanan

Sooner West Plaza D 1981 Equity Commercial Realty, LLC 64,500 6,000 9.30% $16.50 $18.50 Wright’s IGA

36th Ave SW & W Main St Gayla Artman Tuesday Morning

Stubbeman Village E 1972 Equity Commercial Realty, LLC 33,475 0 0% $15.50 $0.00 Chapala Mexican Grill

Elm Ave & Elmwood Dr Judy Hatfield Ratcliff’s Bookstore

The Main Center D 2005 HEW Marketing, Inc. 106,307 0 0% $9.00 $9.00 Hobby Lobby

N Flood Ave & W Main St Heather Warrington Mardel’s

The Shops At Moore C 2007 CBRE 568,679 29,531 5.19% $18.00 $24.00 Office Depot, JC Penney

I-35 & SE 19th St Mark Inman Best Buy

University North Park B 2008 CBRE/OKLA 849,617 9,300 1.09% $17.00 $22.00 Kohl’s, Target

I-35 & W Robinson St Mark Inman Academy

West Port Shopping Center D 1980 40,898 3,600 8.80% $10.50 $14.50 Moore Family Clinic

1200 N Santa Fe Ave GFF Foods

Moore-Norman Totals 4,868,116 263,414 5.41%

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20132012201120102009

EASTERN OK COUNTY SUBMARKET VACANCY

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2013 Mid-Year Oklahoma City Retail Market SummaryEASTErN Ok COuNTy SuBMArkET

Greenhaw Plaza

Eastern Oklahoma County is the only submarket that showed decreased occupancy over the first half of the year. Vacancy increased to 13.3 percent from 12.6 percent. As has been pointed out in previous reports, much of the Eastern Oklahoma County product is older, several centers have significant deferred maintenance or difficult configurations. Ten centers are over 25 percent vacant, five of which are over 35 percent vacant. Ultimately, for the submarket to show significant improvement, these centers will need to be re-modeled, re-purposed, or just torn down. This is happening in other submarkets, albeit slowly.

Town Center Plaza, started in 2005 and expanded over the years (including Dick’s Sporting Goods last year), has remained a strong performer and is, in our opinion, indicative of the demand for newer product in the area. Although, the mixed demographics and overall vacancy of the area can make it a hard sell for some retailers and developers. We see growth in the submarket limited to primarily pad sites and smaller strip development over the near term. The planned re-development of the former Target store into a mixed use medical/retail/restaurant project would be an example. Developers have explored the area, primarily Midwest City, for larger projects, but none have been able to put together a deal yet.

SuBMArkET SuMMAry

Eastern Ok County Class year Built Leasing Agent GLA Vacant Vac % rate 1 rate 2 Anchor Tenant23 Post Plaza D 1986 Nancy Brewer 35,000 2,000 5.71% $7.00 $0.00 Spencer’s Smokehouse

NE 23rd St & N Post Rd Nancy Brewer Farmer’s Insurance

Boulevard Marketplace D 1983 Twist Realty 35,765 3,746 10.47% $15.00 $0.00 Crest Foods, Edward Jones

101 N Douglas Ave Seth Grubstein Rent First, Midwest Dental

Choctaw Plaza C 1974/84 Newmark Grubb Levy Strange Beffort 130,765 32,188 24.62% $8.95 $12.95 Williams Food

14407 NE 23rd St Michael Almaraz Chase Bank

Decker Center D 1982 Brady’s Properties 33,500 0 0% $0.00 $0.00 Cool Smile

1200 S Air Depot Blvd Ali Ghaniabadi FedEx

Del Crest Shops D 1957/90 NAI Sullivan Group 78,150 29,250 37.43% $4.50 $0.00 Dynasty Care Services

SE 15th & Sunnylane David Hartnack Ace Hardware

Dixon Plaza D 1978/80 Joe Leon 34,900 0 0% $8.00 $0.00 Shapes Gym

SE 15th St & S Post Rd Joe Leon Farmer’s Insurance

Eastgate Shopping Center D 1965 North Star 51,052 25,399 49.75% $4.00 $0.00 Family Dollar

1100 N Midwest Blvd Joseph Atkinson

Gateway Plaza C 1985 Newmark Grubb Levy Strange Beffort 98,947 1,968 1.99% $0.00 $0.00 Dollar Tree

SE 15th St & S Air Depot Blvd Michael Almaraz Hobby Lobby

Greenhaw D 1960 Law Offices 33,000 7,000 21.21% $6.00 $0.00 Dollar General

9207 NE 10th St Henry Tien Nguyen

Hartsdel D 1995 Charles Shadid 50,000 22,700 45.40% $3.00 $5.00 Highlander Laundry

SE 44th St & S Bryant Ave Charles Shadid Beauty Supply

Heritage Plaza D 1987 GBR Properties,Inc. 75,071 20,497 27.30% $9.75 $12.16 People’s Church, Edwards Jones

351 N Air Depot Blvd Bob Parker Economy Hearing Aid Center

Holiday Square D 1974 Pelfrey Investments 85,000 0 0% $5.00 $0.00 TLC

1100 S Air Depot Blvd Ray Pelfrey Lucky Bingo

North East Shopping Center D 1970 Charles Shadid 100,000 34,500 34.50% $3.00 $5.00 Options Unlimited

1124 NE 36th St Charles Shadid Jackson Hewitt

Park Estates D 1952 Shapard Properties,Inc. 38,000 10,250 26.97% $3.00 $0.00 Scott Cleaners

NE 36th & N Kelly Ave Bill Shapard Dollar General

Park Plaza D 1993 Charles Shadid 38,268 18,500 48.34% $3.00 $4.00 Diva Beauty Supply

3700 Springlake Dr Charles Shadid Whirlwind Cleaners

Sooner Market Place D 1995 Charles Shadid 63,013 1,200 1.90% $5.00 $7.00 Chelino’s

E Reno Ave & N Sooner Rd Charles Shadid Speed Mart

Spencer’s Center D 2000 Charles Shadid 40,000 10,000 25% $3.00 $5.00 Conoco

NE 23rd St & N Spencer Rd Charles Shadid Discount Beauty Supply

Sunnylane Plaza D 1979 William Choi 84,888 2,000 2.36% $8.50 $9.00 Family Dollar

SE44th St & S Sunnylane Rd William Choi Advance America

Tan & Tone America Center E 2005 25,300 10,576 41.80% $12.00 $15.00 Super Cuts

1900 S Air Depot Blvd My Dentist

The Village D 1973 Michael Biddinger Real Estate 32,353 2,000 6.18% $7.00 $7.00 Rent A Center

SE 29th St & S Vicki Ave Meagan Hall Akropolis Greek Restaurant

Town & Country C 1966/89 Weingarten Realty 138,000 30,135 21.84% $0.00 $0.00 Office Depot, Citi Trends

E Reno Ave & N Air Depot Ave Daniel Goldware Big Lots, Ace Hardware

Town Center Plaza B 2005 Sooner Investment 795,000 0 0% $24.00 $0.00 Target, J C Penney

SE 29th St & S Air Depot Blvd Brad Goodwin Lowe’s, Kohl’s

Uptown Plaza C 1958/72/06 Northstar Properties 168,032 30,775 18.31% $10.00 $12.50 Langston’s, Family Dollar

7430 SE15th St Joseph Atkinson Michael’s, Tuesday Morning

Village Oak E 1981 Newmark Grubb Levy Strange Beffort 26,832 7,900 29.44% $8.00 $12.00 Lupe’s Restaurant

1000 S Douglas Blvd Jim Rose / Carl Archiniaco Papa John Pizza

Westminster Shopping Center D 1963 V. C. Davidson 58,000 11,000 18.97% $3.00 $0.00 Angel’s Furniture

NE 23rd St & S Westminster Rd Davidson Miles Millwork

Eastern Ok County Totals 2,348,836 313,584 13.35%

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Eastern Ok County Class year Built Leasing Agent GLA Vacant Vac % rate 1 rate 2 Anchor Tenant23 Post Plaza D 1986 Nancy Brewer 35,000 2,000 5.71% $7.00 $0.00 Spencer’s Smokehouse

NE 23rd St & N Post Rd Nancy Brewer Farmer’s Insurance

Boulevard Marketplace D 1983 Twist Realty 35,765 3,746 10.47% $15.00 $0.00 Crest Foods, Edward Jones

101 N Douglas Ave Seth Grubstein Rent First, Midwest Dental

Choctaw Plaza C 1974/84 Newmark Grubb Levy Strange Beffort 130,765 32,188 24.62% $8.95 $12.95 Williams Food

14407 NE 23rd St Michael Almaraz Chase Bank

Decker Center D 1982 Brady’s Properties 33,500 0 0% $0.00 $0.00 Cool Smile

1200 S Air Depot Blvd Ali Ghaniabadi FedEx

Del Crest Shops D 1957/90 NAI Sullivan Group 78,150 29,250 37.43% $4.50 $0.00 Dynasty Care Services

SE 15th & Sunnylane David Hartnack Ace Hardware

Dixon Plaza D 1978/80 Joe Leon 34,900 0 0% $8.00 $0.00 Shapes Gym

SE 15th St & S Post Rd Joe Leon Farmer’s Insurance

Eastgate Shopping Center D 1965 North Star 51,052 25,399 49.75% $4.00 $0.00 Family Dollar

1100 N Midwest Blvd Joseph Atkinson

Gateway Plaza C 1985 Newmark Grubb Levy Strange Beffort 98,947 1,968 1.99% $0.00 $0.00 Dollar Tree

SE 15th St & S Air Depot Blvd Michael Almaraz Hobby Lobby

Greenhaw D 1960 Law Offices 33,000 7,000 21.21% $6.00 $0.00 Dollar General

9207 NE 10th St Henry Tien Nguyen

Hartsdel D 1995 Charles Shadid 50,000 22,700 45.40% $3.00 $5.00 Highlander Laundry

SE 44th St & S Bryant Ave Charles Shadid Beauty Supply

Heritage Plaza D 1987 GBR Properties,Inc. 75,071 20,497 27.30% $9.75 $12.16 People’s Church, Edwards Jones

351 N Air Depot Blvd Bob Parker Economy Hearing Aid Center

Holiday Square D 1974 Pelfrey Investments 85,000 0 0% $5.00 $0.00 TLC

1100 S Air Depot Blvd Ray Pelfrey Lucky Bingo

North East Shopping Center D 1970 Charles Shadid 100,000 34,500 34.50% $3.00 $5.00 Options Unlimited

1124 NE 36th St Charles Shadid Jackson Hewitt

Park Estates D 1952 Shapard Properties,Inc. 38,000 10,250 26.97% $3.00 $0.00 Scott Cleaners

NE 36th & N Kelly Ave Bill Shapard Dollar General

Park Plaza D 1993 Charles Shadid 38,268 18,500 48.34% $3.00 $4.00 Diva Beauty Supply

3700 Springlake Dr Charles Shadid Whirlwind Cleaners

Sooner Market Place D 1995 Charles Shadid 63,013 1,200 1.90% $5.00 $7.00 Chelino’s

E Reno Ave & N Sooner Rd Charles Shadid Speed Mart

Spencer’s Center D 2000 Charles Shadid 40,000 10,000 25% $3.00 $5.00 Conoco

NE 23rd St & N Spencer Rd Charles Shadid Discount Beauty Supply

Sunnylane Plaza D 1979 William Choi 84,888 2,000 2.36% $8.50 $9.00 Family Dollar

SE44th St & S Sunnylane Rd William Choi Advance America

Tan & Tone America Center E 2005 25,300 10,576 41.80% $12.00 $15.00 Super Cuts

1900 S Air Depot Blvd My Dentist

The Village D 1973 Michael Biddinger Real Estate 32,353 2,000 6.18% $7.00 $7.00 Rent A Center

SE 29th St & S Vicki Ave Meagan Hall Akropolis Greek Restaurant

Town & Country C 1966/89 Weingarten Realty 138,000 30,135 21.84% $0.00 $0.00 Office Depot, Citi Trends

E Reno Ave & N Air Depot Ave Daniel Goldware Big Lots, Ace Hardware

Town Center Plaza B 2005 Sooner Investment 795,000 0 0% $24.00 $0.00 Target, J C Penney

SE 29th St & S Air Depot Blvd Brad Goodwin Lowe’s, Kohl’s

Uptown Plaza C 1958/72/06 Northstar Properties 168,032 30,775 18.31% $10.00 $12.50 Langston’s, Family Dollar

7430 SE15th St Joseph Atkinson Michael’s, Tuesday Morning

Village Oak E 1981 Newmark Grubb Levy Strange Beffort 26,832 7,900 29.44% $8.00 $12.00 Lupe’s Restaurant

1000 S Douglas Blvd Jim Rose / Carl Archiniaco Papa John Pizza

Westminster Shopping Center D 1963 V. C. Davidson 58,000 11,000 18.97% $3.00 $0.00 Angel’s Furniture

NE 23rd St & S Westminster Rd Davidson Miles Millwork

Eastern Ok County Totals 2,348,836 313,584 13.35%

The E-Commerce Imperative: Impact on Industrial & Retail Real Estate

Published by Cassidy Turley/Commercial Real Estate Services

The road Ahead

Retail routinely goes through seismic shifts; the rise of the suburban shopping mall; the ebb and flow of the department store

sector; the emergence of the category killers; the ascent (and now the shrinking) of the big boxes. Consumer tastes evolve, the pendulum swings back and forth and the marketplace adapts. E-commerce is nothing new, but its growth has finally reached a tipping point and we are in the midst of one of those seismic shifts. As challenging as this may seem, those retailers who see this as an opportunity will be the ones that end up on top. And, no, the traditional shopping center will never go away. But retail landlords who don’t understand the nature of these changes and react to them properly will face a bumpy road ahead. Meanwhile, owners of industrial properties also need to understand the nature of the beast if they want to capitalize on the current wave of demand from mega-distribution users. Sound real estate strategies are critical across the board. In conclusion, we would like to leave you with a brief outline that summarizes both the challenges and opportunities that lay ahead.

• Shopping center vacancies will continue to fall at a modest rate as overall retailer growth plans are up, however, there has been a massive shift in terms of who is expanding.

• There are two forces currently impacting retail demand in the United States; the economy and the impact of e-commerce.

• Continued weak recovery has meant strong growth from dollar stores, discounters and off-price retailers. Luxury shoppers are back and high-end chains are also in growth mode (though these numbers are always small and mostly limited to high street retail and trophy shopping center locations). With the middle class consumer still in frugality mode, mid-priced concepts are in extremely conservative growth mode at best, or in contraction.

• The rise of e-commerce has meant stiff competition for mid-priced hard goods retailers. Most are focusing their immediate efforts on building their e-commerce platforms and are streamlining their bricks and mortar presence.

• Concepts that don’t, or only minimally compete, with e-commerce is where we are seeing some of the strongest bricks and mortar growth. Restaurants lead the way, grocery stores are hot (new smaller concepts are expanding though many traditional players are contracting) and service related retailers are the strongest sectors.

• Big box users are mostly shrinking their footprints, particularly in those sectors most impacted by e-commerce (consumer electronics, office supplies, etc.).

• The tenant mixes for shopping center landlords are radically shifting away from hard goods. Experiential retail means creating a shopping environment that builds around dining and entertainment options.

• The current trend is of the strongest shopping centers getting stronger and the weak getting weaker. Class A in nearly every U.S. market has improved, but there has not been enough demand to spill over to Class B projects outside of a few of the strongest markets. Class C struggles everywhere

• After years in which there was virtually no retail development outside of Texas (with the exception of outlet centers), retail developers are slowly returning. Mixed-use urban development (and redevelopment) is hot but suburban is not. This may begin to change by 2014 when the return of housing development may begin to provide new suburban rooftops for retailers to follow.

• New mall and lifestyle projects are focused on beefing up dining and entertainment options, but the trophies still

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see hard goods growth. Power centers are increasingly looking to grocery retailers to fill empty big boxes and shift tenant mixes. Neighborhood centers are seeing the least change.

• Going forward, the return of the housing market will bring GDP back to “normal levels” by 2014. The return of housing values will mean the return of the middle-class consumer by 2016 and an increase in retail demand from the long MIA mom-and-pop sector—most of these startups use home equity loans as their initial line of funding.

• While the economy will continue to exert less downward pressure on bricks and mortar retail demand, the impact of e-commerce will continue to exert more pressure.

• Most major hard goods retailers will continue to focus the lion’s share of their growth efforts on building their e-commerce platforms and distribution chains over the next three to four years.

• In terms of net absorption, industrial has led all other commercial real estate product types since the end of the recession. The majority of this growth has been driven by demand for mega distribution centers.

• Demand for mega bulk distribution centers will only be on the increase over the next couple of years. But most of the existing vacancy that exists in the market does not meet the criteria of what these users need.• Build-to-suits have served most of the larger (500,000+ square feet) distribution center requirements over the past three years and will likely continue to do so.

• We are seeing an increase in speculative development—savvy developers are creating divisible mega bulk warehouses in order to hedge their bets with more traditional distribution center users should they struggle to find a mega-user.

• Though some owners of existing older properties may prove to be successful in landing new mega-tenants, the majority of the space in the market that is more than just a few years old is obsolete to many of these users, Upgrades might be an option for some, however, these can sometimes be almost as costly as just erecting a new building.

• Even with a slight uptick in development, our study of supply and demand trends indicates that there will continue to be a shortage of this type of space over the next three years. Both sales and lease pricing is likely to increase during this period.

Tanda Francis, Managing Broker(918) 394 - 10008242 South Harvard, Suite ITulsa, OK 74137www.priceedwards.com

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