Oklahoma CityOklahoma CityRetail Market Summary

Year End 2004

ContentsRetail Market Summary ................................ 2-3

Retail Submarket Map ..................................... 3

North ........................................................... 4-5

Northwest ..................................................... 6-7

South ........................................................... 8-9

Edmond ................................................... 10-11

West-Central ............................................. 12-13

Moore-Norman ......................................... 14-15

Eastern Oklahoma County ......................... 16-17

Market Sales Summary .................................. 18

Oklahoma CityOklahoma CityRetail Market Summary

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.

2

Welcome to the Year-End 2004 Retail Market Survey prepared by Price Edwards & Company. This survey evaluates the occupancy of 190 retail centers in excess of 25,000 s.f. containing over 23.1 million square feet. In addition, we will be looking at the overall market including freestanding properties which are not part of a shopping center. We have surveyed 230 buildings containing in excess of 11 million square feet. With these two types of properties combined, we have over 34.7 million square feet of space available for retail use. During the past six months since our last Retail Market Survey, our overall shopping center occupancy has improved. This past six-month period has seen an increase in occupancy from 88.52% to 91.57%. Vacant space in shopping centers has decreased by almost 500,000 s.f. to 2.182 million s.f. In addition, we have pinpointed approximately 800,000 s.f. of freestanding space that is presently vacant and available for lease. Overall, our retail market remains healthy, and we are excited about the prospects for 2005.

The big news in this survey is the large amount of new or redeveloping centers under construction. We have identifi ed nine different centers in excess of 25,000 s.f. that are under construction, expansion, or redevelopment. These centers, which have total rentable square footage of over 3.3 million s.f. range from the old Towne South center located at I-240 and Walker which has been almost totally razed to the major Sooner Investment development in Midwest City which will have more than 800,000 s.f. Many of these developments are pre-leased with national tenants that are expanding in this market, or in a few cases, with tenants new to the market. We also have reports of at least four major centers that are planned but have not broken ground at this point. These centers will increase the market by a sizable amount, and since most, if not all, are being developed by experienced retail developers, it is felt that quality properties

will be the result. It is interesting to note that several of these new developments are in the South and the Moore/Norman submarkets. This area of the metropolitan area has shown great growth and the demographics are quite strong. Edmond is another submarket that continues to have excellent developments underway. It is our opinion that these developments should be reasonably successful. In addition to these larger centers, there continue to be a large number of new strip centers being built and leased. Excluding the smaller centers, the new construction is going to increase our overall market by over 10% without consideration to the announced but as yet undeveloped centers.

Of signifi cance, insofar as construction is concerned, Memorial Square at the northeast corner of Memorial and north Pennsylvania has opened P.F. Chang’s and Circuit City. There are other new stores and restaurants under construction. Additionally, Home Depot has begun construction on a new store just west and north of Memorial

Square on the west side of Pennsylvania. Construction has also begun on the Sooner Investment/Midwest City development. Even though a court ruling set the development timetable back somewhat, reports are that progress has been made and that certain anchors are about to begin their construction. The 240 Penn Park center located at the northeast corner of South Pennsylvania and I-240 has begun construction. Reports indicate that a new space for Mardels and a new Marshalls store will be involved.

The North Oklahoma City market and the Moore/Norman market continue to be the strongest submarkets with approximately 95% occupancy. The Edmond submarket, which has been quite strong in the past surveys, still has fi ve centers with over 15,000 square feet of vacancy. A couple of these centers are relatively new and should lease up over the next several months. We still consider Edmond a very strong submarket. Likewise, Eastern Oklahoma

County is showing a vacancy of less than 10%. While it is not a large submarket insofar as retail square footage is involved, it does cover a great deal of territory. This submarket has continued to be quietly successful. At the same time, it could change dramatically as the new Sooner Investment/City of Midwest City joint venture takes shape. Reports that Heritage Park Mall which was acquired by local investors at year end will be repositioned to be a more attractive retail draw which could also help Eastern Oklahoma County keep its retail sales tax dollars there instead of being lost to other areas of the metropolitan area.

A major focus on the downtown and Bricktown area for housing and retail is underway by the leaders of Oklahoma City. With the success of the Deep Deuce apartments and the Bass Pro opening in the fall of 2003, the stage has been set for more retail to come to Bricktown. Phoenix-based Harkins Theaters has opened their 16-screen facility just west of the 123,000

s.f. Bass Pro. There are a couple of retail strips tied into it. Earl’s Rib Palace, Sonic, Nothing but Noodles, and Marble Slab Creamery have opened. Additionally, well-respected restaurant and shop owner, Avis Scaramucci, is scheduled to open her high-end restaurant and gift shop in the heart of Bricktown by the middle of February. There continue to be rumors of additional retail development just north of Bass Pro. Several other Oklahoma City real estate players are also working on a master plan for mixed use which will include substantial retail space to be located in the Flat Iron area (now being called the Triangle) which is located between Bricktown and 10th Street just west of the Centennial Expressway.

Wal-Mart continues to expand in the Oklahoma City market. The company has recently announced new SuperCenters in far north Midwest City at NE 23rd and Douglas and in Edmond on I-35. Based on our calculations, the addition of these stores takes the square footage of Wal-Mart-related retail operations to over 4.7 million square feet. Recent reports indicate that Wal-Mart has in excess of 40% of the grocery market in the state.

The malls in this market place continue to have positive and negative reports. Penn Square, Quail Springs, and Sooner Fashion Mall are all reported to be doing quite well. As mentioned above, Heritage Park Mall in Midwest City has changed hands and reports indicate a redevelopment. Crossroads Mall has picked up a new anchor--Steve and Barry’s which is an athletic apparel retailer—occupying 160,000 s.f. of the former Montgomery Wards. Just as the national market reports, well-located and well-anchored malls are still doing well while those that have lost anchors and may have transitioning locations seem to be struggling. There are discussions about mall tenants taking positions in open air lifestyle centers in future developments in the metropolitan area.

With regard to the drug store segment of the market, CVS has taken over operation of the Eckerd portfolio. Signage has been changed, but several Eckerd locations are being closed and the space has been made available for sublease. There are also reports that several sites where Eckerd’s had planned new stores have been shelved or deals cancelled. Walgreen’s continues its expansion with several recent announcements.

Occupancies of centers surveyed have improved since our last survey. The market continues to perform in a healthy way. There is not a signifi cant amount of vacant blocks of space. We are pleased with the national retailers who are starting to look at our market for new entry or expansion of existing coverage. There will be some announcements in the near future from several national retailers opening new stores here. On the other hand, the signifi cance of Wal-Mart’s presence is possibly having some effect on the number of local tenant expansions and start-ups. Rents in the newer, national tenant dominated centers are reaching levels in excess of $20 per s.f. Local tenant rental rates are signifi cantly lower, and there is a question as to how far these rates can be increased before signifi cant local tenant fallout occurs. Even

though a signifi cant amount of new space will be coming on the market over the next couple of years, there has been little or no concern raised about overbuilding. Our opinion is that the local tenant market could also be affected due to new strip centers that are not on our survey being completed and placed in service without signifi cant pre-leasing.

The survey has been divided into seven submarkets and fi ve classes within each submarket. Some of these submarkets have higher vacancy than at year end, but in these cases, the increase is caused by a single center losing a major tenant. Even though these submarkets are generally healthy, there are pockets of vacancy caused by loss of an anchor than can skew the actual results. Detailed study of all the markets is suggested before a fi rm decision on the retail health of a specifi c submarket is made.

Price Edwards & Company is pleased to provide you with this survey. Hopefully, it will help you better understand the Oklahoma City and the metropolitan area’s retail markets. Please do not hesitate to contact us if we can be of service.

Total Market Absorption1996 - 2004

-2.5 -2.0 -1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0Millions of Square Feet

2002

199619971998199920002001

20032004

Total Market Inventory1995 - 2004

0

5

10

15

20

25

30

35

Mill

ions

of S

quar

e Fe

et

Includes additional freestanding retail space03 0495 96 97 98 99 00 01 02

Total Market Vacancy1995 - 2004

0%

3%

6%

9%

12%

15%

03 0495 96 97 98 99 00 01 02

OKLAHOMA CITY RETAIL SUBMARKET MAP

3

Oklahoma CityOklahoma CityOklahoma CityNorth Submarket

NORTH SUBMARKET BY CLASSClass Centers GLA VacantClass A 2 2,224,482 47,178Class B 3 1,117,127 31,182Class C 9 1,430,306 132,254Class D 17 1,002,746 81,562Class E 4 92,900 0

4

North Historical Vacancy1995 - 2004

0%

2%

4%

6%

8%

10%Pe

rcen

t Vac

ant

03 0495 96 97 98 99 00 01 02

North Submarket Historical Inventory1995 - 2004

0

2

4

6

8

Mill

ions

of S

quar

e Fe

et

Includes additional freestanding retail space03 0495 96 97 98 99 00 01 02

North Submarket Absorption1996 - 2004

-100 -50 0 50 100 150Thousands of Square Feet

2002

199619971998199920002001

20032004

YEAR END 2004 REVIEW

There are two major centers of retail in this sector—the Penn Square area at the confl uence of Pennsylvania and Northwest Highway and the Quail Springs area located along the Kilpatrick Turnpike between Pennsylvania and May. These two areas are anchored by strong regional malls. Penn Square with 1,100,000 square feet and Quail Springs with 1,117,366 square feet already draw signifi cant retail sales dollars. New developments in each of these areas further solidify their strong hold on retail sales in the area. The 450,000 square foot Quail Springs Market Place has been joined by Sam’s Warehouse and Wal-Mart Supercenter with over 400,000 square at the southeast corner of the Kilpatrick Turnpike and Pennsylvania and 226,000 square foot Super Target at the northeast corner of this intersection. With these additions, the Quail Springs area now boasts over 2.25 million square feet of retail space. Memorial Square located across Pennsylvania from Quail Springs is under redevelopment and PF Chang’s and Circuit City have already opened. Home Depot has recently begun construction of a store in this area, and there are reports of new development north of Quail Springs. The Belle Isle area has well over 1.6 million square feet of retail space including Penn Square, Belle Isle Station, and 50 Penn Place. The Quail Springs and Belle Isle areas draw shoppers from all the western, southern, and central parts of the state as well as from all over the metropolitan area. 50 Penn Place recently changed ownership, and there is hope that this important retail center will be rejuvenated. Olive Garden is building a new store on the east parking lot of 50 Penn Place.

There are other excellent shopping centers in this submarket. May Avenue from Northwest Highway to the Kilpatrick Turnpike has long been a great retail corridor. While a number of centers on May are still doing quite well, there are some vacancies emerging due to increased competition and some old-line tenants moving out.

Shopping centers adjacent to Nichols Hills and Quail Creek, both high income areas, are generally doing well. Vacancies are quite low and rents are stable. The retail developments on Western between I-44 and Wilshire continue to be successful with little real tenant turnover. The Village, located just north of Nichols Hills, continues to aggressively attempt to attract new retail to its community in order to spur sales tax revenues. Reports of a possible development on the west side of May between Britton and Hefner have surfaced, but the retenanting of the vacant Albertson’s at Britton and May has not materialized as of this date and could affect new development.

Price Edwards & Company surveyed 33 shopping centers totaling 5,831,260 square feet. Occupancy is 95.33% vs. 95.03% at the time of the last survey.

We estimate that there are 13 freestanding retailers in this submarket with over 642,810 square feet of space in operation. This square footage is less than the last survey due to the old Target that is now occupied by Gordman’s and Best Buy being moved to an operating center due to its remaining vacancy being leased. There are no only freestanding vacancies in this submarket.

Signifi cant restaurant development continues in the Quail Springs area. Smoky Bones Bar BQ, a Darden restaurant concept, recently announced a new operation in this area. Other retail has been developed in the area as well with this space being targeted to local tenants who have little chance of breaking into the Quail Springs major centers. Also, development of multiple properties in the vicinity of the Wal-Mart Supercenter at Kilpatrick and Pennsylvania have added additional retail space to this sector. It has been reported that some of the highest rents in the metro area are being asked and received at this intersection.

FORECAST FOR 2005

Memorial Square redevelopment will continue, and a number of tenant prospects will be available for the space.

Look for the possibility of new retail development in the areas of major single family development north and west of Quail Springs.

Big box vacancies are not likely to increase.

Since several properties in this submarket have been sold to more aggressive landlords, positive absorption from new leasing will be realized.

Center & Address Class Built/Updated Leasing Agent GLA Vacant % Vacant Rate 1 Rate 2 Anchor Tenant(s)

5

2201 Memorial C Blanton Properties 101,128 0 0.00% Nego. - Gordmans, Best Buy2201 West Memorial Tom Blanton50 Penn Place C 1973/1985/00 Trammell Crow Co. 198,004 10,823 5.47% $12.00 $14.00 Harold’s, Balliet’s50th & Pennsylvania Randy Vaillancourt6900 Place D 1981/91/92 Price Edwards & Co. 49,263 7,570 15.37% $7.50 $10.50 Moto Photo, Blockbuster6900 N. May Ave Susan Brinkley/Pat Barnes/Chad CochellBelle Isle Station B 2000 Blanton Property Co. 433,333 20,140 4.65% Nego. - Wal-Mart Super Center, Old NavyNW Highway and Classen Tom BlantonBritton Square D 1983 Corey Properties 93,126 2,400 2.58% $8.00 - Cunningham Interiors, 9401 N. May Ave. Mike MurrayCamelot Square C 1984 Blanton Property Co. 107,799 3,950 3.66% Nego. - Cox Communications, N.W. 122nd & Penn Jeff BoldingCasady Square C 1953/83/95 Price Edwards & Co. 158,764 5,100 3.21% $10.00 $15.00 CVS Drugg, New Leaf FloralBritton & N. Pennsylvania Pat Barnes/Susan Brinkley/Chad Cochell Walmart Neighbor MarketCentennial Plaza B 1993 CB Richard Ellis 233,794 6,500 2.78% $9.00 $15.00 Best Buy, Gordman’s58th & May Mark Inman Home Depot, Guitar CenterCharter At May D 1963/88/96 Land Run Comm. R.E. 99,745 30,132 30.21% $12.00 $12.00 Luby’s Cafeteria, Mill Creek9494 N. May Johnathan RussellCollonade D 1984 Coyle Enterprises 45,000 3,700 8.22% $10.00 - Party Bazaar, Boca Boca Café Pranzo9600 N. May Ave Nolan CoyleColonial Square C 1970/2003 Colonial Companies 174,000 20,000 11.49% Nego. - Albertson’s, 9225 N. May Ave Eric RobertsCountry Club Corner D 1959/96 John A. Henry & Co. 53,477 0 0.00% $14.00 - CompUSA, Hollywood Video6410 N. May Jeff Norman/Ethan SlavinCountry Club Village D 1970/92/03 Levy/Beffort 56,000 5,800 10.36% $9.00 $11.00 Herritage Trust Co.2800 W. Country Club Mike Webb National Bank of CommerceFrench Market Mall C 1985 Saul Centers,Inc. 217,000 15,860 7.31% $12.00 $20.00 Bed Bath & Beyond/Lake Shore Learning Ctr.2850 N.W. 63rd Alan Gersh Staples, Burlington Coat,Brides MartLakehurst Center D 2002 Price Edwards & Co. 31,432 4,140 13.17% $11.00 - N Style Salon, 8025 N. May Avenue Susan BrinkleyLakeside Shops Shopping Center D 1950/1999 Pippin Properties 67,000 5,400 8.06% $9.00 $11.00 Firestone, Name Brand Clothing7300 N. May Phil PippinLakewood D 1996 Oxford Group 55,247 2,500 4.53% $8.50 - Mazzio’s, Storkland & Kids6901 N. May Rhonda Martin Cokesbury BookstoreMayfair Place D 1978 CB Richard Ellis 95,000 11,000 11.58% $8.50 - Akin’s Health Foods, PetsMart, Big Lots2900 N.W. 63rd Jebb BlacketerNichols Hills Plaza C 1963 Coyle Enterprises 130,000 0 0.00% $12.00 - Crescent Market, Starbucks6501 Avondale Nolan CoyleNorth Penn Plaza D 1970/71 Steve Hetherington 32,000 0 0.00% Nego. - Koslow’s, Comm. Federal Bank5601 N.Pennsylvania Northpark Mall C 1971/81 Morris Enterprises 200,000 43,000 21.50% Nego. - Tommy’s Italian Grill, B.C. Clark12100 N. May Ave Kevyn ColburnPenn Square Mall A 1960/88 Simon Property 1,100,000 12,000 1.09% $35.00 $45.00 Dillard’s, Foley’s1901 N.W. Expressway blanddec@simon.comPenn-Hefner Plaza D 1973/77 Haydel Associates 69,392 0 0.00% $12.00 $14.00 Buy For Less, Rent A Center2121 W. Hefner Buddy HaydelQuail Plaza C 1965/89/91 Morris Enterprises 144,335 35,000 24.25% $10.00 $15.00 Tuesday Morning, Goodyear Tire10950 N. May Kevyn ColburnQuail Springs Mall A 1980/98/99 General Grwth Mgmt.,Inc. 1,124,482 24,464 2.18% Nego. - Dillard’s,Foley’s, SearsMemorial & N. Penn Kelly Waswo AMC Quail 24 Theaters, J.C. PenneyQuail Springs MarketPlace B 1997/2001 Blanton Property Co. 450,000 3,500 0.78% Nego. - Ultimate Electronics, Old NavyMemorial & Penn Tom BlantonQuail Springs Village E 1983 John A. Henry & Co. 26,500 0 0.00% $14.00 - Fabric Unlimited, Pier 1 Imports13801 N. Penn Jeff Norman/Ethan SlavinShoppes at North Pointe D 2002 Jackson Development 37,400 1,200 3.21% $16.00 $17.00 Bank One, Heavenly Hams, Jimmy’s EggMay Ave. & Memorial Rd. Tom Parker DK SalonsSpring Creek North D 1981 Price Edwards & Co. 39,006 2,050 5.26% $9.00 $12.00 Blockbuster Video, Homeland (ST)12200 N. May Pat Barnes/Susan Brinkley/Chad CochellTown & Country Village D 1982/92 Bradys Properties 43,500 1,650 3.79% $10.00 - Cocina De Mino, JJ Kelly, Subway12335 N. May Ali GhaniabadiVillage Park* E 1972 Raymond Johnson 23,000 0 0.00% $9.00 - Hi Performance Scuba, Audio Dimension10405 N May Raymond JohnsonVillage Park* North E 1972 Coldwell Banker 16,400 0 0.00% $0.00 $0.00 , 10405 N May Lee BollingerVillage Plaza D 1964/73/89 Herndon & Kelley 49,133 0 0.00% $6.00 $6.00 Westlake Hardware, Dollar General1505 W. Britton Rd. Jay CrabbWilshire Village E 1986 Dr. Scott Samara,M.D. 27,000 0 0.00% $10.00 - Dodson Art Gallery, Learning TreeWilshire & Western Dana

North Totals 5,781,260 277,879 4.81%North ConstructionMemorial Square, Memorial & Penn C 1984/01 Blanton Property Co. 216,000 0 0.00% $0.00 $0.00 Super Target, PF Changs

Oklahoma CityOklahoma CityOklahoma CityNorthwest Submarket

NORTHWEST SUBMARKET BY CLASSClass Centers GLA VacantClass A 0 0 0Class B 2 1,060,000 109,500Class C 11 1,582,557 367,151Class D 13 661,140 109,378Class E 3 80,370 11,900

6

Northwest Submarket Absorption1996 - 2004

-100 -50 0 50 100 150 200 250 300 350Thousands of Square Feet

2002

199619971998199920002001

20032004

Northwest Historical Vacancy1995 - 2004

0%

5%

10%

15%

20%

25%Pe

rcen

t Vac

ant

03 0495 96 97 98 99 00 01 02

Northwest Submarket Historical Inventory1995 - 2004

0

1

2

3

4

5

Mill

ions

of S

quar

e Fe

et

Includes additional freestanding retail space03 0495 96 97 98 99 00 01 02

YEAR END 2004 REVIEW

This submarket is bounded on the east by Pennsylvania (south of Northwest Highway) and Hefner Parkway (north of Northwest Highway) and 39th Expressway on the south. The Northwest Highway continues to be a major artery funneling over 125,000 people into the City on a daily basis. The population base is largely upper middle class income and professional.

Northwest Highway continues to have several of the strongest shopping centers in the metropolitan area and continues to collect some of the highest rents. However, for the fi rst time in many years, there is some continuing vacancy on this major thoroughfare. Other centers in this submarket are generally neighborhood type with a good draw around their area.

The extension of the Kilpatrick Turnpike to County Line Road on the west and the rapid development of Gaillardia on the north end of this submarket has increased the likelihood of retail developments along the turnpike.

Price Edwards & Company surveyed 29 shopping centers containing 3,385,631 s.f. with an occupancy of 86.45%. The same centers were 82.33% occupied in the last survey. No one center caused this reduction in vacancy, but a number of centers had nice increases in occupancy; all of which contributed to the improved submarket results.

We estimate that there are 19 freestanding retailers operating in this submarket with over 665,465 square feet of space with slightly over 37,900 square feet being vacant. This is a reduction of 62,100 square feet of vacancy. The reason for the reduced square footage is the recently announced Imperial Pizza taking the Wal-Mart building on Northwest Highway just east of MacArthur.

FORECAST FOR 2005

Some new leasing of larger spaces as some national tenants return to this sector of the market in the vicinity of Northwest Highway and Rockwell. Competition for good tenants wanting to locate in this submarket will be keen.

There is some speculation that some additional redevelopment of freestanding buildings could occur, but there is not much chance of additional speculative construction occurring on Northwest Highway. On the other hand, there could be some strip center development and possibly some freestanding development in the north part of the submarket especially at strong corner locations.

Center & Address Class Built/Updated Leasing Agent GLA Vacant % Vacant Rate 1 Rate 2 Anchor Tenant(s)

7

122nd & MacArthur D 1985 Shdeed Law Offi ce 42,200 0 0.00% $8.00 $10.00 Best Cleaners, Pizza Hut Delivery122nd & MacArthur Bill ShdeedBrixton Square C 1985 GBR Properties, Inc. 122,253 16,500 13.50% $7.50 $10.00 Hollywood Theaters, Party Galaxy7101 N.W. Expressway Bob ReppeCornerstone Plaza D 1958/78/2003 Salt Creek LP 65,748 4,950 7.53% $7.00 $8.00 Family Dollar, Rent-A-Center39th & MacArthur Crystal LodenCouncil Crossing C 1986/92/03 Price Edwards & Co. 142,197 44,547 31.33% $7.00 $10.00 Buy For Less, Dollar General8101 N.W. Expressway Susan Brinkley/Pat Barnes/Chad CochellCourtyard Plaza D 1984 Price Edwards & Co. 38,846 4,598 11.84% $10.00 $13.00 Blockbuster Video, At the Beach6401 N.W.Expressway Pat Barnes/Susan Brinkley/Chad CochellLakeshore Shopping Center C 2002 Oxford Group 139,447 5,140 3.69% $13.00 - Academy Sporting Goods, JoAnn Fabrics4200 N.W.Expressway Rhonda MartinLakeshore Shops D 1998 Gene Voth 33,140 8,700 26.25% $6.00 $8.00 Home Consignment, Al’s Bicycles7930 N. MacArthur Gene VothMacArthur Shops E 1983 Centennial Property Mgmt. 25,630 2,250 8.78% $8.00 $8.00 SRO Dance Studio, MacArthur & Britton Jim SandersMarket Place C 1992 Price Edwards & Co. 178,854 7,200 4.03% $6.50 $13.00 Hemisphere, David’s Bridal5501 N.W. Expressway Chad CochellMarket Plaza C 1981/82 Price Edwards & Co. 150,513 31,820 21.14% $5.00 $11.00 Tuesday Morning/Petco7001 N.W.Expressway Pat Barnes/Susan Brinkley/Chad Cochell Westlake Hardware, AldiMayfair Village C 1948/90 Price Edwards & Co. 183,247 8,294 4.53% $9.00 $12.00 Michael’s Arts & Crafts, Steinmart50th & N. May Ave Susan Brinkley/Pat Barnes/Chad CochellNewport E 1972 Gene Voth 25,740 2,400 9.32% $5.00 $6.00 Seven-Eleven, Sunshine Laundry9120 North MacArthur Gene VothOklahoma City Market Square C 1983/2000 Price Edwards & Co. 143,579 29,000 20.20% $8.00 $10.00 TJ Maxx, Famous Footwear8400 N.W. Expressway Susan Brinkley/Pat Barnes/Chad CochellPeppertree Square D 1984 Levy/Beffort 77,531 11,700 15.09% $8.00 - Tan & Tone America, Golden Rice, Auto Zone6444 N.W. Expressway Jim RosePortland Plaza C 1965/93/97 John A. Henry & Co. 103,312 20,833 20.17% $7.00 $10.00 Outdoor Outfi tters/Lock Supply, Locke SupplyN.W. 39th & Portland Jeff Norman/Ethan SlavinQuail Brook D 1987 90,389 1,941 2.15% $12.50 - Panera Bread, Mercy Health System4401 W. Memorial John CohlmiaRock Center E 1982 Levy/Beffort 29,000 6,000 20.69% $10.50 - Avis6700 N.W. Expressway John CohlmiaRockwell Northwest C 1984/99 John A. Henry & Co. 163,000 21,615 13.26% $10.00 $12.00 Hobby Lobby, Kinkos7000 N.W. Expressway Jeff Norman/Ethan SlavinRockwell Plaza B 78/83/98/01 Medallion Mgmt. Inc. 360,000 99,000 27.50% $10.00 $16.00 Target, Aspen Athletic Club8375 N Rockwell Wayne StoneSilver Springs B 2000 Trammell Crow Co. 700,000 10,500 1.50% $15.00 $20.00 Wal-Mart (220,000)(ST), Home DepotN.W. Highway & Council Stuart Graham Sam’s, Kohl’sSpringbrook D 1968 First Commercial Mgmt., Inc. 50,000 2,832 5.66% $7.50 - All American Fitness, Hollywood Video6207 N.W. Expressway John W. Meek, RPASpringdale C 1961/86/93/98 Grace Comm. R.E. 126,000 23,200 18.41% $6.00 $8.00 Rent Way, Dollar General50th & Meridian Mary GraceWalnut Village D 1986-2000 Howard Properties 53,850 2,450 4.55% $9.00 $10.00 Godfather’s Pizza, Lady Of America122nd & Rockwell Bill HowardWarr Acres D 1950/94 Ken Park 34,400 2,000 5.81% $6.00 $7.00 Big Red Shop, Taj Grocers50th & MacArthur Warwick Crossing D 1995 Metheny Concrete 31,500 8,850 28.10% $10.00 $0.00 Remax, Athletic VillageHefner & Rockwell Rick MethenyWarwick Crossing D 1995 Thung Ta 69,500 1,500 2.16% $8.00 - Homeland(36,000 ST), Dollar General11122 North Rockwell Thung Ta ask for Moon Ta Steve’s WineWarwick North Village D 1978/1984 Griffi n Law Offi ces 30,000 7,000 23.33% $4.00 - SuperCuts, Edward JonesN.W. 122nd & Rockwell Brian Griffi n First Class LearningWarwick Plaza D 1978-84 Centennial Property Mgmt. 45,600 0 0.00% $6.00 $8.00 State Farm Insurance, N.W. 122nd & MacArthur Jim SandersWest Park Mall C 1972 Saul Centers,Inc. 130,155 73,881 56.76% $5.00 $12.00 US Post Offi ce, Family Dollar, Buyers Market63rd & N. MacArthur Allen Gersh

Northwest Total 3,385,631 458,701 13.55%

Oklahoma CityOklahoma CityOklahoma CitySouth Submarket

SOUTH SUBMARKET BY CLASSClass Centers GLA VacantClass A 1 1,266,462 61,432Class B 0 0 0Class C 14 2,154,188 516,683Class D 15 821,823 152,526Class E 2 59,355 10,060

8

South Submarket Absorption1996 - 2004

-150 -100 -50 0 50 100 150 200 250 300Thousands of Square Feet

2002

199619971998199920002001

20032004

South Historical Vacancy1995 - 2004

0%

5%

10%

15%

20%

Perc

ent V

acan

t

03 0495 96 97 98 99 00 01 02

South Submarket Historical Inventory1995 - 2004

0

2

4

6

8

Mill

ions

of S

quar

e Fe

et

Includes additional freestanding retail space03 0495 96 97 98 99 00 01 02

YEAR END 2004 REVIEW

This submarket includes an area generally bounded by I-40 on the north, Moore on the south, I-35 on the east, and Will Rogers International Airport on the west. It is anchored by Crossroads Mall, a 1,111,000 square foot regional shopping center located at the intersection of Interstate 35 and Interstate 240. Questions continue to be raised about how well Crossroads is doing, but with the addition of a new anchor to take a large portion of the vacated Montgomery Ward space, there is new enthusiasm. The Interstate 240 corridor which runs west from Crossroads Mall has been one of the strongest retail areas in all of Oklahoma City. Although some business has been lost to the Moore area and to new centers located south of this corridor, it is still quite important to retail in the metropolitan area. One signifi cant new center is under construction and two are under redevelopment in this corridor. Additionally, the strong demographics of the area south of I-240 has triggered some announcements of new development.

Price Edwards & Company surveyed 31 shopping centers with 4,184,690 s.f. Occupancy is 84.48%. The same centers were 82.78% occupied in the last survey. Walnut Square Shopping Center located at I-240 and Pennsylvania has completed redevelopment of a 96,000 square foot Service Merchandise space with the opening of a new Big Lots store and a 20,000 s.f. Health Food Center. Signifi cant vacancies continue in centers located north of the I-240 corridor, and some new vacancies surfaced in other centers when some anchors closed. South Shields Plaza with over 140,000 square feet of vacancy is reported to be under redevelopment with a new anchor tenant. If this redevelopment takes place, it will reduce the vacancy factor by almost 20%.

We estimate that there are 44 freestanding retailers in operation in the south submarket with a total square footage of 2,353,417 square feet. We estimate that there are 365,000 square feet vacant. There has been no real change in square footage leased since the last survey. With the start of construction of 240 Penn Park located at the northeast corner of Pennsylvania and I-240, one of the major vacant freestanding buildings is being razed.

A Wal-Mart SuperCenter has opened at the intersection of I-44 and Hwy 37 on the west side of this submarket. This store has caused a large vacancy at the Tri City Shopping Center located across the street from this development, but it has kicked of some new development in the area. Also, the bedroom communities of Newcastle and Blanchard are beginning to enjoy some development of smaller strip centers.

FORECAST FOR 2005

We continue to feel that there could be some new commercial development in the west sector of this submarket where little retail development has occurred to date. Also, expect some new development along 134th Street.

New development i n B l a n c h a rd and Newcastle c o u l d o f f e r oppo r t un i t i e s for retailers who desire to serve these fast growing markets.

Center & Address Class Built/Updated Leasing Agent GLA Vacant % Vacant Rate 1 Rate 2 Anchor Tenant(s)

11

33rd & Boulevard D 1982 Lee Segal 49,400 0 0.00% $7.00 $0.00 Mardel’s, 36,000 SF Eckerd Drug33rd & Blvd. Lee SegalBerkshire Plaza D 2002 Price Edwards & Co. 39,000 1,800 4.62% $15.00 $16.00 Offi ce Depot, Mr. Goodcents15th Street & Broadway Pat Barnes/Susan Brinkley/Chad CochellBoulevard Village D 1985 Maloy Properties,LLC 36,604 0 0.00% $6.50 $9.50 Radio Shack, Pizza Hut3404-3456 S. Boulevard Richard & Kaye MaloyBroadway South D 1977 61,524 0 0.00% $15.00 - Edmond Music, 3320 S. Broadway John CohlmiaBryant Square C 1973/1992 Weingarten Realty 278,752 37,281 13.37% $6.00 $15.00 Eckerds, Dollar Tree, Steinmart2nd & Bryant Brooke Harvey Bed Bath & BeyondDanforth Square C 1999 Grisson Investments 108,000 0 0.00% $12.00 $14.00 Hobby Lobby, Athletic VillageDanforth and Kelly Jim GrissomEagle Crest D 1983 Trammell Crow Company 51,000 34,800 68.24% $11.00 $6.00 Eagle Crest Market, Blockbuster Video3000 E. Memorial Rd, Oklahoma City Stuart GrahamEdmond Crossing C 1995 Trammell Crow Company 159,600 14,000 8.77% $12.00 $12.00 Homeland, TJ Maxx, Edmond Furniture24 S.E. 33rd Stuart GrahamEdmond Exchange B 2003 John A. Henry & Co. 71,243 38,281 53.73% $13.00 $18.00 On the Border, Coach’s3233 S Broadway John Henry & Jeff NormanEdmond Plaza C 1964/89 C.B./Hocker & Assoc. 157,658 22,500 14.27% $11.00 $16.00 Westlake Hardware, Albertson’s (55,000) (ST)1600 S. Broadway Marty ColemanEdmond Trails E 1971/03 Trammell Crow Company 25,215 4,000 15.86% $12.00 $15.00 YMCA of Edmond, Game X Change289 S. Santa Fe Stuart GrahamHomestead Plaza D 2003 CB Richard Ellis 39,000 26,988 69.20% $15.00 $16.00 US Cellular/Great Clips, Tower Dental,Danforth and Santa Fe Brian Donahue Eileen’s Cookies, Buffalo Wild WingsKelly Plaza D 1984 Price Edwards & Co. 85,464 7,986 9.34% $8.00 $13.00 Big Lots, Sherwin Williams2nd Street & Kelly Chad CochellKickingbird Square C 1983/88 Levy/Brooks 110,000 1,000 0.91% $12.00 - Kickingbird Regal Cinema, Interurban1323 W. Danforth Jim RoseMarket Place D 1981/82/90 Price Edwards & Co. 96,118 1,200 1.25% $9.00 $12.00 Hobby Lobby, Delta Café3301 S. Boulevard Pat Barnes/Susan Brinkley/Chad CochellNorth Oaks D 1983/89 Hayes Brokerage 70,600 0 0.00% $12.00 - Westlake Hardware, Dollar General821 W. Danforth Don HayesOak Brook D 1982/91/92 Wiggin Properties 43,006 18,776 43.66% $12.00 - , 218 S. Santa Fe Don Faulkner/StephanieOxford Point Shops E 1986 Price Edwards & Co. 26,600 1,750 6.58% $9.00 $10.00 Alta Mere, The Vision CenterBryant & 2nd Susan BrinkleyPebblecreek D 2001 CB Richard Ellis 62,500 2,200 3.52% $18.00 - Kohl’s, Dollar TreeDanforth & Santa Fe Jeb BlacketerSignal Ridge D 1986 Fotis Bargeliotes 35,000 0 0.00% $6.00 $7.00 Conoco, Daylight Donuts1700 S. Kelly Fotis BargeliotesSpring Creek Plaza D 2000 Zerby Interests 63,000 1,617 2.57% $23.00 - Talbot’s, Panera Bread15th & Bryant Caleb HillUniversity Plaza C 2000 Sooner Investment 400,000 8,000 2.00% $16.00 - Target Super Center, 2nd & Bryant Brandy Tice Lowe’s Home ImprovementWillow Creek E 1985 Davis Commercial Properties 31,000 0 0.00% Nego. - Randy’s M & M, 2nd & Santa Fe Jim Davis

Edmond Totals 2,100,284 222,179 10.58%

Spring Creek Village of Edmond D 2005 CBRE 62,000 62,000 100.00% $18.00 $20.00 , NWC 15th & Bryant Mark InmanUniversity Village D 2000/2004 Sooner Investment 61,300 9,800 15.99% $18.00 $23.00 Wal-Mart Neighborhood Mkt., Blockbuster2nd & Bryant Brandy Tice Party America

Edmond Construction Total 123,300 71,800 58.23%

Oklahoma CityOklahoma CityOklahoma CityWest-Central Submarket

WEST-CENTRAL SUBMARKETBY CLASS

Class Centers GLA VacantClass A 0 0 0Class B 1 507,500 1,700Class C 7 1,055,889 256,207Class D 15 914,047 111,149Class E 3 81,980 5,200

12

West-Central Submarket Historical Inventory1995 - 2004

0

1

2

3

4

5

6

7

Mill

ions

of S

quar

e Fe

et

Includes additional freestanding retail space03 0495 96 97 98 99 00 01 02

West-Central Submarket Absorption1996 - 2004

-50 0 50 100 150 200 250 300Thousands of Square Feet

2002

199619971998199920002001

20032004

West-Central Historical Vacancy1995 - 2004

0

5

10

15

20

25

30

Perc

ent V

acan

t

03 0495 96 97 98 99 00 01 02

YEAR END 2004 REVIEW

This submarket includes all the shopping center properties south of 39th Expressway, north of Interstate 40, west of Lincoln, plus Yukon and Mustang.

Westgate Shopping Center at MacArthur and I-40 remains the most signifi cant new retail development in this sector. It includes 1,000,000 square feet of major retail stores which includes Wal-Mart Supercenter, Hobby Lobby, Offi ce Depot, Home Depot, and Ross Dress for Less. There is some pad development underway at this time, but a major new phase of development has not begun at the present time.

Kilpatrick Turnpike is completed to the north edge of Mustang, and the bridge across the Canadian River on the south side of Mustang has opened. These two developments provide easy access to shopping in Yukon and Mustang for the substantial number of people living south of the river and west of I-44 as well as shoppers from other parts of the community. West End Pointe, located at Garth Brooks and I-40, has completed its fi rst couple of phases with a Lowe’s, a Staples, and a Kohl’s as anchor tenants. Shop space has been developed as a subsequent phase. Wal-Mart has opened a SuperCenter at Highway 152 & Sara Road in Mustang, and free-standing CVS and Walgreen’s are open at Highway 152 and Mustang Road. New strip centers have been developed in the vicinity of the Wal-Mart SuperCenter and are generally leasing very well with national and regional tenants not previously in the area.

A new medium-sized strip center has been announced in west Yukon, but it remains to be seen if the center will actually get started.

The I-40 and Portland area continues to go through a transition to a major retail furniture and design center for the community and the state. By our count, there are 32 stores, containing almost 1.5 million square feet, operating in this area that specialize in furniture and accessories. A number of the stores have moved from operating shopping centers in other parts of the city which have negatively affected the tenant mix and, in some cases, the occupancy of those centers.

In the 23rd and Classen area of this submarket, a major grocery store, Cao Nguyen Supermarket, specializing in ethnic foods is anchoring the Asian community’s vibrant shopping area. A new Walgreen’s is underway on the southwest corner of the intersection. Penn Crossing located at NW 23rd and North Pennsylvania has attracted a replacement anchor in a Wal-Mart Neighborhood Market, and a signifi cant second phase is in pre-leasing at the present time. Further west, Crest Foods has taken over the grocery anchored position at Windsor Hills making this location their fi rst one in the west Oklahoma City market. Crest remains one of only a few grocery operations that has managed to compete successfully with Wal-Mart SuperCenters.

The 39th Expressway retail area which has been suffering deterioration for a number of years is showing some signs of rebirth as some centers are being renovated and retenanted.

Price Edwards & Company surveyed 26 shopping centers totaling 2,606,678 s.f. Occupancy is 87.92%. The last survey showed an occupancy of 85.38% for this sector.

Including the above mentioned furniture area in the vicinity of Reno and Portland, we estimate that there are 66 freestanding retailers in operation in this submarket with over 3,407,306 square feet of space. We have identifi ed approximately 184,000 square feet of vacant space. This is an increase of approximately 84,000 square feet tied exclusively to three buildings in the furniture area being vacated during the past six months.

Center & Address Class Built/Updated Leasing Agent GLA Vacant % Vacant Rate 1 Rate 2 Anchor Tenant(s)

13

16th & Indiana D 2002 Gene Voth 41,079 0 0.00% $3.00 $5.00 Discount Dollar Store, Guate Imports16th & Indiana Gene Voth36th & May Center C 1986 B.D. Eddie Enterprises 97,500 81,250 83.33% $7.00 $0.00 36th & May Terry McGuireAnn Arbor Terrace E 1971 Levy/Brooks 30,000 19,000 63.33% $6.00 $7.00 Family Dollar, 4913 NW 23 Jim RoseArvest Plaza D 1986/2000 J. S. Ferguson 32,600 3,330 10.21% $9.00 - Arvest Bank, 915-917 S. Cornwell, Yukon JS FergusonChisholm West C 1979/82 Price Edwards & Co. 206,510 54,478 26.38% $5.00 $13.00 Hastings, Big Lots1100 S. 11th Street, Yukon Pat Barnes/Susan Brinkley/Chad CochellDeVille C 1964/92/94 Price Edwards & Co. 122,268 18,110 14.81% $5.00 $6.00 Buy For Less, Heart & Hand ThriftN.W. 23 and Council Susan Brinkley/Pat Barnes/Chad CochellGlen Oaks D 1968/98 John A. Henry & Co. 49,161 0 0.00% $8.00 - Westlake Hardware, Blockbuster VideoN.W. 23rd & Rockwell Jeff Norman/Ethan SlavinMacArthur Court D 1985 Baker First 35,228 1,700 4.83% $8.00 $8.50 Computer Tech.3820 N. Mac Arthur Anna CondradyMacArthur Park D 1997 Gene Voth 55,506 0 0.00% $5.00 $6.50 Community Thrift Store, Pizza & More2300 N. MacArthur Gene VothMeridian Plaza D 1959 Price Edwards & Company 92,690 9,500 10.25% $4.00 $5.00 James Lighting, Dollar General StoreN.W. 16th & Meridian Chad Cochell, Pat Barnes, Susan BrinkleyMustang Creek Plaza D 2001 Mustang Development, LLC 33,000 1,000 3.03% $9.50 $0.00 Marilyn Pryor Realty, 821 S. Mustang Rd, Mustang Gretchen BybeeMustang Trade Center C 1983 LandRun Commercial 106,850 4,580 4.29% $7.50 - Wal-Mart (35,000)(ST), Homeland (35,000)(ST)Hwy. 152 & Mustang Rd., Mustang Jon Russell Dollar GeneralOld Mill (previously Town Plaza) D 1964/78 National Properties 82,730 9,400 11.36% $4.00 $6.00 Locke Supply301 Elm, Yukon Ray WrightPenn Crossing D 1994 Trammell Crow Company 144,128 0 0.00% $12.00 $17.00 Walmart Neighborhood Mkt., Kinko’s23rd & Pennsylvania Stuart Graham Mazzio’s, Westlake HardwarePortland Square D 1958/87 Bob Thorpe 38,000 13,098 34.47% $4.00 - Hancock Fabrics, Sam’s Wholesale Liquor23rd & N. Portland Bob ThorpeRock Glen Center E 1994 Spirit Company 25,280 800 3.16% $6.00 - Coleman’s Pawn, Labor Ready1500 N. Rockwell Joe RamseyShartel Plaza D 1965 Pro Realty 84,050 22,694 27.00% $12.00 - Eckerd Drug, Draper’s IGA5225 N. Shartel Greg DownsSilver Shopping Center D 1974/84 Centennial Property Mgmt. 86,096 32,000 37.17% $3.00 $6.00 Mustang Bowl, Hwy 152 & Mustang Rd, Mustang Jim SandersTen-M D 1958/88/91 Joe LaBar 33,000 0 0.00% $7.00 - Summit Business SystemN.W.10th & Meridian Joe LaBar Apple Tree Antique MallWalnut Creek D 1974 Gene Voth 62,822 3,800 6.05% $3.00 $4.00 Thermo Roll Shutters, Affordable Furniture1110 N. MacArthur Gene VothWest End Pointe B 2001 Trammell Crow Company 507,500 0 0.00% $16.00 $20.00 Lowe’s (150,000) ST, Kohl’sI-40 & Garth Brooks Blvd., Yukon Stuart GrahamWestoaks Village D 1964/74/82 Baker - First 91,347 3,800 4.16% $4.00 - Family Dollar, Cabinet OutletN.W. 10th & Rockwell Anna ConradyWill Rogers C 1982 Gene Voth 160,000 1,600 1.00% $4.00 $6.00 Oriental Imports, McSalty’s Pizza3000 N. Portland Gene VothWindsor Hills C 1960/1998 Weingarten Realty 235,561 2,016 0.86% $4.00 $13.00 Crest Foods, Big Lots4601 N.W. 23rd Brooke HarveyWindsor Park E 1982 Levy/Brooks 26,700 1,200 4.49% $9.50 - CiCi’s Pizza, 2500 N. Meridian Jim RoseYukon Hills C 1978 John A. Henry & Co. 127,200 31,746 24.96% $6.00 $9.00 Cross Trainers Fitness, Buy For Le$$Vandament & Cornwell, Yukon Ethan Slavin/Jeff Norman

West-Central Total 2,606,806 315,102 12.09%

Westgate Marketplace B 2000 Zerby Interests 1,000,000 12,000 1.20% $23.00 - Wal-Mart (120,000)(ST), Home DepotI-40 & MacArthur Caleb Hill

West-Central Construction Total 1,000,000 12,000 1.20%

FORECAST FOR 2005

A new strip center with approximately 60,000 s.f. of space will be started in Yukon.

The area around the Cao Nguyen Supermarket at 25th and Military will continue to rejuvenate with new retail stores. These stores will mostly be local and ethnic tenants. Redevelopment of the “golden dome” is underway and the old Citizens Tower, recently renamed the Classen Tower is being converted to residential condominiums. These developments will add some retail space to the area.

A possible expansion of Westgate Plaza could occur this year.

Oklahoma CityOklahoma CityOklahoma CityMoore-Norman

Submarket

MOORE-NORMAN SUBMARKETBY CLASS

Class Centers GLA VacantClass A 0 0 0Class B 2 878,851 19,983Class C 9 1,276,458 49,889Class D 9 606,515 53,842Class E 4 112,890 4,025

14

Moore-Norman Submarket Absorption1996 - 2004

-100 -80 -60 -40 -20 0 20 40 60 80 100Thousands of Square Feet

2002

199619971998199920002001

20032004

Moore-Norman Submarket Historical Vacancy1995 - 2004

0%

2%

4%

6%

8%

10%

12%

Perc

ent V

acan

t

03 0495 96 97 98 99 00 01 02

Moore-Norman Submarket Historical Inventory1995 - 2004

0

1

2

3

4

5

Mill

ions

of S

quar

e Fe

et

Includes additional freestanding retail space03 0495 96 97 98 99 00 01 02

YEAR-END 2004 REVIEW

Moore is a bedroom community located in the south part of the Oklahoma City metropolitan area. It is bisected by Interstate 35, a major interstate highway that runs from the Mexican border through Dallas north to Minnesota. Moore’s year 2000 population is close to 45,000. Moore is enjoying a signifi cant increase in retail traffi c and is drawing numerous shoppers from outside of its city limits.

New development activity in the southwest quadrant of Moore in the vicinity of the Wal-Mart SuperCenter at South 19th and I-35 continues to be signifi cant. In addition to Kohl’s, Tractor Supply, Shoe Carnival and several strip centers, there are several freestanding restaurants and banks located in the area. Gordman’s has opened and is connected to the Kohl’s store by shop space. This area of Moore has become the center for retail activity for the area. The Wal-Mart SuperCenter is considered to be a “Top 5%” location, and the Kohl’s is highly ranked among other of its stores in the region. A redevelopment of the old Sam’s center and surrounding stores located across I-35 from this hot retail area has been announced.

Commercial development on the east side of town has slowed down, but a number of developments are being planned for the west side of Moore.

Norman is a growth market located 17 miles south of Oklahoma City along Interstate 35. Its year 2000 population was estimated to be 97,000 and is the home of the University of Oklahoma with over 30,000 students.

Norman has a strong local image, and Norman shoppers are very supportive of their retailers preferring to spend money locally rather than driving to Oklahoma City.

Major retail development has occurred over the past 10 years on the west side of Norman. Parkway Plaza, a 375,000 s.f. power center, has joined Sooner Fashion Mall, a 503,000 s.f. enclosed mall, as major anchors to this area. Home Depot, PetsMart, Offi ce Max, Toys R’Us, Ross, Barnes & Noble, Pier 1, and Border’s Books are all operating in this area. A Wal-Mart SuperCenter, Lowe’s, and Best Buy have opened on the east side of I-35, but in the same general shopping area as the above mentioned centers. A Sam’s Club has recently opened on the site of the old Wal-Mart in this west area of Norman. Brookhaven Village, which was acquired by a local investor in mid-2004, is a 155,000 square foot retail and offi ce center located at the southwest corner of 36th and Robinson. This center continues to have strong tenancy with good local drawing power and has recently attracted Starbucks, Talbot’s, and Joseph A Banks along with some other new tenants. There are several other healthy neighborhood centers in our survey located in the area.

East Norman, long overlooked as a retail growth area, has new retailers entering the submarket. A Wal-Mart SuperCenter, an Albertson’s, and a Walgreen’s are operating in the area. In addition, Westlake Hardware has located at Alameda Plaza and Langston’s Western Wear has opened in this east Norman sector as well.

Downtown Norman has long enjoyed a strong retail following and led by Hobby Lobby continues to be a force in the market place. The Campus Corner redevelopment continues to enjoy success as several new tenants have located there.

The OU Foundation land which contains 550 acres of development property is presently in predevelopment. Reports indicate a major retail project could kick off the development.

Price Edwards & Company surveyed 25 shopping centers totaling 2,937,839 square feet. Occupancy is a healthy 94.97% which is slightly less than our last survey’s occupancy of 95.56%. As reported previously, there are a number of strip centers that are below our 25,000 square foot cut off point in Norman. They look to be reasonably well occupied adding to the stability of the submarket.

By our estimate, there are presently 37 freestanding retail stores in this submarket with 2,033,676 square feet of space. We estimate that there are four stores with 247,000 square feet of space that are vacant. This is the same amount that was vacant in the last survey.

Center & Address Class Built/Updated Leasing Agent GLA Vacant % Vacant Rate 1 Rate 2 Anchor Tenant(s)

15

FORECAST FOR 2005

Norman occupancies should remain stable with some increase in rents in centers that are strong and well anchored. There will be signifi cant tenant interest if the development of the retail space at the OU Foundation land located at I-35 and Robinson.

Moore’s retail market is booming, and the retail areas along I-35 in the vicinity of the Wal-Mart SuperCenter lead the pack. Look for more big box users to locate in this area. There will also be additional development of strip centers in this area. Rents are expected to increase. Redevelopment of the Shops at Moore (old Sam’s center on the east side of I-35 in vicinity of 19th Street) will begin.

With the addition of Crest, Neighborhood Market, Walgreen’s, and Eckerd’s, the east side of Moore has stabilized, but there has been a slow down in new development activity. The west side of Norman continues to grow to the north, and it is only a matter of time until local retail development follows.

Alameda Square D 1984 Equity Realty 85,420 1,250 1.46% $10.00 $20.00 Ace Hardware, Eckerd/Dollar Tree12th & Alameda Eric FleskeAnatole D 1985 Equity Realty 64,555 0 0.00% $12.00 - GOLDEN CHEF, Sherwin Williams12th & Alameda Gayla ARTMANBrookhaven Village C 1985 Price Edwards & Co. 154,547 0 0.00% $12.00 - Chico’s, Starbucks/The Health Club,Robinson & 36th Lee Chancellor Talbots/Jos. A BankCampus Corner Shops C 1911/93 Equity Realty 210,000 3,000 1.43% $11.00 $12.00 OU Authentic/Antiqued Goodem301 W. Boyd Eric Fleske Harrold’s, Louie’s RestaurantCarriage Plaza E 1983 Gus Gianos Family Prtnrshp. 25,500 0 0.00% Nego. - The Webb, Cayman’s2001 W. Main Peter GianosColonial Estates C Ren. 1988 CommercialOKC 104,051 12,030 11.56% $7.50 $8.50 Valu Foods, Langston’sLindsey & 12th Marc WeinmeisterDowntown Center C 1965 Hobby Lobby 107,000 2,750 2.57% $7.00 - Hobby Lobby, Mardel700 Main Bill Darrow/CarlaEastmore Shopping Center D 1981 Levy/Beffort 52,000 26,000 50.00% $5.00 $8.00 Radio Shack, Dollar General406 S. Eastern, Moore Louis AlmarazHeisman Square D 1999 Raptor Properties 93,000 2,250 2.42% $12.00 - Albertson’s, Hollywood Video12th & Alameda Heidi VanlandinghamHollywood Center C 1964 Foreman Properties 127,600 0 0.00% $2.00 $3.00 Homeland, Hancock Fabric1600 W. Lindsey Lynn ForemanMerkel Creek E 1985 Equity Realty 32,000 0 0.00% $12.00 - Top Dog Classic Coney/Citi Finance, Top Dog 2203 W. Main Street Gayla Artman Classic Coney, Shogun’sNew City Center C 1963/98 Levy/Brooks 181,894 19,800 10.89% $8.00 - Family Dollar, Stage, Ace Hardware605 N. Moore Ave., Moore Jim RoseNormandy Creek C 1974 Dillard Group 107,366 1,307 1.22% $9.50 $14.00 Hastings Books (36,000)(ST)220 Block West Main Steve Williams/Sandy Taylor Furr’s Cafeteria, BrookMays MusicPark On Main D 1982 Huettner Properties 68,045 0 0.00% $8.00 $13.00 POM Executive Suites, Moto Photo36th & Main Debby BuskingParkway Plaza B 1996 Kimco Realty Co. 375,000 16,848 4.49% $16.00 - Toy’s ‘R Us, Ross, Barnes & Noble, Ed Noble Parkway Jennifer Reynolds Home Depot (120,000)(ST),Bed Bath & BeyondRiverwalk Plaza E 2000 Price Edwards & Co. 26,939 0 0.00% $12.50 $0.00 Berkleys, Cingular Wireless2109-2139 Riverwalk Drive Susan BrinkleyRobinson Crossing C 1986/89 Brady’s Properties 108,000 0 0.00% $10.00 - Domino’s, PC Computer, Pizza Hut, Interstate1300 N Interstate Dr. Ali Ghaniabadi Theaters, Audio Dimension, Univ of PhoenixRoss Dress For Less C 1984 Gumberg Asset Mgt. 176,000 0 0.00% Nego. - Ross Dress for Less, Southern AntiqueSouth 19th & I-35, Moore Dave SiegelSilver Leaf D 1985 Pratts 88,097 41,000 46.54% Nego. - , 12th & Eastern, Moore Larry HarrisSooner Mall B 1976/88/99 General Growth Properties 503,851 3,135 0.62% Nego. - Dillard’s, JC Penney, SteinmartMain & I-35 Steve Hughes/Lynn Palmerton Sears, Old NavySooner Shopping Center D 1966 Ultra-Thin 50,000 13,000 26.00% $6.00 - Moore Rexal Drugs, Moore Tag AgencyN.W. 5th Broadway, Moore Joe Bryant/Mike PayneSooner West Plaza D 1981 Heiple Law Offi ces 64,500 0 0.00% $9.00 $13.00 Wright’s IGA, Tuesday MorningMain & 36th Harold HeipleStubbeman Village E 1972 Kathi White & Associates 28,451 2,600 9.14% Nego. $10.00 Mr. Bill’s, Ratcliff BookstoreElm & Lindsey Kathi WhiteThe Main Center D 2005 CB Richard Ellis 63,125 2,750 4.36% $0.00 $0.00 , 540 W. Main Mark InmanWest Port Shopping Center D N/A Steve Craig 40,898 0 0.00% $8.50 - Fleming Co/CFF Grocery1200 North Santa Fe, Moore Church’s Chicken/Little Ceasears

Moore-Norman Total 2,937,839 147,720 5.03%CONSTRUCTIONShops @ Moore B 2005 CB Richard Ellis 450,000 450,000 100.00% $12.00 $18.00 RossSE I-35 & 19th Street, Moore Mark Inman

Oklahoma CityOklahoma CityOklahoma CityEastern OklahomaCounty Submarket

EASTERN OKLAHOMA COUNTY SUBMARKET BY CLASS

Class Centers GLA VacantClass A 0 0 0Class B 1 588,615 100,000Class C 4 610,149 56,140Class D 18 918,109 62,847Class E 1 27,500 2,700

16

Eastern Oklahoma County Submarket Absorption1996 - 2004

-200 -150 -100 -50 0 50 100Thousands of Square Feet

2002

199619971998199920002001

20032004

Eastern Oklahoma County Historical Vacancy1995 - 2004

0%

5%

10%

15%

20%

Perc

ent V

acan

t

03 0495 96 97 98 99 00 01 02

Eastern Oklahoma County Historical Inventory1995 - 2004

Mill

ions

of S

quar

e Fe

et

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Includes additional freestanding retail space03 0495 96 97 98 99 00 01 02

YEAR-END 2004 REVIEW

Eastern Oklahoma County, which includes Midwest City and Del City as well as Choctaw, Harrah, Spencer, and other small communities, combine a trade area of approximately 60,000. Average household income is over $42,000. The largest employers are Tinker Air Force Base and General Motors, but there are numerous other employers in this area. Tinker remains Oklahoma City’s largest employer, and with the new maintenance mall rapidly becoming a reality, there should be additional high paying jobs in the future.

Midwest City and Sooner Investments have begun work on the development of its commercial frontage along I-40 across from Tinker Air Force Base. Announcements have been made that Super Target and Lowe’s will be the fi rst anchors. A Wal-Mart SuperCenter has been announced in Midwest Center at the intersection of NE 23rd Street and Douglas.

Price Edwards & Company surveyed 23 shopping centers with 2,095,419 square feet of inventory. Occupancy is 90.43% which is slightly better than our year-end survey’s occupancy of 89.66% occupancy.

We estimate that there are 31 freestanding retailers in operation with over 1,300,000 square feet. During the past six months, the former K-Mart located at Reno and Sooner has been leased, and this reduces the vacancy in freestanding buildings from 176,500 square feet to approximately 65,000 square feet.

FORECAST FOR 2005

The Sooner Investment/Midwest City redevelopment will continue even though there has been a court ruling that has caused some concern about the development. Target and Lowe’s will begin construction.

The recent change of ownership of Heritage Park Mall will signal a repositioning of this property.

Other than the Sooner Investment’s redevelopment, no signifi cant construction of retail is expected in the Midwest City area, but some development of smaller strip centers could be announced in the surrounding communities. Because of the lower vacancy, rents will begin to trend upward.

Center & Address Class Built/Updated Leasing Agent GLA Vacant % Vacant Rate 1 Rate 2 Anchor Tenant(s)

17

23 Post Plaza D 1986 Nancy Brewer 35,000 6,000 17.14% $7.00 - Spencer’s Smokehouse, N.E. 23rd & Post Nancy BrewerBoulevard Market Place D 1983 Weingarten Realty 35,500 5,297 14.92% $8.00 $11.00 Blockbuster Video, 101 N. Douglas Brooke HarveyChoctaw Plaza C 1974/84 Grubb & Ellis 130,765 55,140 42.17% $7.00 - Super H Discount, Bank One14400 N.E 23rd, Choctaw Russell Pace Blockbuster, Dollar GeneralDecker Center D 1982 Bradys Properties 33,500 3,300 9.85% $8.00 - Supercut’s, Customer Choice, Kinko’s1200 S. Air Depot Ali GhaniabadiDel Crest Shops D 1957/90 Del City Shops 78,150 2,500 3.20% $5.00 $6.00 Ace Hardware, Dollar GeneralS.E. 15th & Sunnylane, Del City Linda CrosbyDixon Plaza D 1978/80 Joe Leon 34,900 0 0.00% $8.00 - Buy for Less(26,000)(ST), Farmer’s InsuranceS.E. 15th & Post, Midwest City Eastgate Center D 1965 Atkinson Prop. & Invest. 52,000 17,500 33.65% $5.00 $6.00 Family Dollar, 1100 Midwest Blvd Joe AtkinsonGateway Plaza C 1985 Clinton Greenhaw 100,000 0 0.00% $8.00 $10.00 Bank One, Hobby LobbyAir Depot & S.E. 15th Charles GreenhawGreenhaw D 1960 Law Offi ces 33,000 0 0.00% $6.00 - Dollar General, N.E. 10th & Lee, Oklahoma City Edward LeeHartsdel D 1995 Gene Voth 50,000 0 0.00% $3.00 $5.00 Highlander Laundry, Discount Beauty SupplyS.E. 44th & Bryant, Del City Gene VothHeritage Park Mall B 1978/93 Sperry Van Ness 590,661 72,312 12.24% Nego. - Dillards, SearsE. Reno & Air Depot Jason LittleHeritage Plaza D 1987 GBR Properties,Inc. 74,700 17,000 22.76% $7.00 $8.00 Hollywood Theaters, CiCi Pizza351 N. Air Depot Bob ReppeHoliday Square D 1974 Pelfriz Investments 85,000 4,200 4.94% $6.00 $10.00 Furr’s Cafeteria, Karen’s Kids1100 S. Air Depot Sheila HoppisPark Estates D 1952 Shapard Properties,Inc. 38,000 6,500 17.11% $4.50 - Scott Cleaners, Dollar General36th & Kelly, Oklahoma City Bill ShapardPark Plaza D 1993 Gene Voth 38,268 3,000 7.84% $3.00 $4.00 Diva Beauty Supply, Whirlwind Cleaners3700 Springlake Dr, Oklahoma City Gene VothSooner Market Place D 1995 Gene Voth 63,013 800 1.27% $4.00 $7.00 Chelino’s, Speed MartSooner & Reno, Del City Gene VothSpencer’s Center D Ren. 2000 Gene Voth 40,000 0 0.00% $3.00 $5.00 Conoco, Discount Beauty Supply23rd & Spencer, Spencer Gene VothSunnylane Plaza D 1979 Hayes Brokerage 86,078 0 0.00% $6.00 - Homeland, Family DollarS.E.44th & Sunnylane, Del City Don HayesThe Village D 1968 Micheal Biddinger R.E. 32,000 0 0.00% $6.00 - BeautyCo, Rent A CenterS.E.29th & Vicki, Del City Sue JonesTown & Country C 1966/89 Weingarten Realty 137,384 4,500 3.28% $3.50 $12.00 Offi ce Depot,Sight & SoundReno & Air Depot Brooke Harvey Big Lots, WestLake HardwareUptown C 1958/72 Atkinson Prop. & Invest. 242,000 0 0.00% $7.00 - Dollar General, Michael’s Crafts, Langston’s7430 S.E. 15th Joe AtkinsonVillage Oak E 1981 Bradys Properties 27,500 0 0.00% $9.00 $6.00 Oklahoma Blood Institute1000 S Douglas Boulevard Ali Ghaniabadi Shape Fitness, Lupe’s ResturantWestminster D 1963 V. C. Davidson 58,000 2,500 4.31% $4.00 - Angle’s Furniture, K & B SurplusN.E. 23rd & Westminster, Nicoma Park

Eastern OK County Total 2,095,419 200,549 9.57%

CONSTRUCTIONMidwest City Development B Sooner Investment 800,000 800,000 100% City of Midwest City

ABBREVIATIONS USED IN DATAGLA - Gross Leasable Area (ST) - Shadow TenantRent 1 - Lowest Rental Rate Rent 2 - Highest Rental RateThere are fi ve 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 classifi ed 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.

210 Park Avenue, Suite 1000Oklahoma City, Oklahoma 73102405-843-7474 • 405-236-1849 FAXwww. priceedwards. com

Oklahoma CityOklahoma CityRetail Sales Summary

Year End 2004

There have been thirteen sales of retail properties containing over 25,000

square feet during 2004. These sales totaled $43.99 million with the

largest, by far, being the sale of Brookhaven Village in Norman to Allen

Gann’s interests. Cap rates for these multi-tenant centers have ranged

between 9% and 12.5%. Prices per S.F. have averaged $43.87 per S.F.

and have ranged from a low of $18 per S.F. to $112 per S.F. The size of

these centers have ranged from 29,772 to 211,000 S.F. There have also

been several sales of smaller strip centers in the 10,000 to 24,000 square foot range. Prices on a cap rate basis for these sales

are very diffi cult to track, but sales per square foot have ranged from a low of $12.79 per S.F. to a high of $83.40 per S.F.

There are still very low cap rates being quoted on credit tenant occupied buildings throughout the country. Many quotes are in the

6% to 7% range. We understand that the cap rate range on deals actually being closed in this market is between 7.0% and 8.25%

depending on the remaining lease term and credit quality of the tenant.

As previously reported, the Brookhaven sale was notable in that an institutional owner chose to sell the property to local interests.

The center, which was constructed in 1985 and has almost 155,000 square feet, had recently undergone a conversion of theater

space into retail space. Starbucks has recently opened in a portion of this renovated space, and Talbot’s, Joseph A. Banks, and

several other tenants have signed leases during the past six months since this property sold. The price per square foot was $67.95

and a cap rate of under 10% was reported.

Heritage Park Mall which sold just before the end of the year for approximately $19 per S.F. was likewise sold by a national fi rm to a

local investor. Reports are that preliminary plans are to open up the mall and reposition it to take advantage of the large population

within the area.

The Towne South Center was sold with the intent of the buyer razing most, if

not all, of the center and rebuilding a more modern retail project. This action

could be a harbinger of action plans in the future as more and more centers

become functionally obsolete, but their land is worth redeveloping.

There continues to be an abundance of demand, but not much product on

the market. This demand continues to be fueled by low interest rates and

buyers who wish to diversify their investment portfolios. Retail centers

continue to be the hot property type not only in this market place but

throughout the country as well.