NAI MEMBER NAME. NAI Earle Furman, LLC

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1 NAI MEMBER NAME NAI Earle Furman, LLC Retail Office Report Second First Quarter Quarter

2 Upstate Market TRENDS: Vacancy Rate Net Absorption UPSTATE STATISTICS: Number of Buildings...7,443 Market Size (SF)...72,248,361 Overall Vacancy Space (SF)...5,275,688 Overall Vacancy (%)...7.3% Direct Vacancy (SF)...5,010,333 Sublease Vacancy (SF) ,355 Net Absorption...(79,836) Average Asking Rental Rate ($/SF/YR)...$ % 7.5% 7.0% 6.5% 6.0% $11.00 Overall Vacancy (%) 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Average Asking Rental Rate OVERVIEW: $10.50 Construction Asking Rents The Upstate retail market continued to see rising vacancy and decreasing rental rates this quarter. The amount of vacant sublease space also continued to increase with approximately 265,355 square feet in the market. However, the Upstate also saw signs of positive activity this quarter including Hibachi Grill and Supreme Buffett leasing 10,800 square feet to open a new restaurant in the former Ryan s Steakhouse building in Spartanburg. In June, Downtown Greenville welcomed Guadalajara Mexican Restaurant. This North Main location marks the chain s third Upstate restaurant. There have also been expansions in the retail sector this quarter such as The Pink Monogram opening a second location on Haywood Road. Their first location is off Augusta Road on Sevier Street. $ Q08 2Q08 3Q08 4Q08 1Q09 2Q09 NEW RETAIL PROJECTS: Century BMW and Century Mini broke ground on a new 35,693 square foot facility on Laurens Road. Also under construction is a 5,445 square foot multi-tenant center on South Blackstock Road in Spartanburg and a new Bojangles location on Augusta Road. Major Lease Transactions Tenant: Property Type: Size (SF): Submarket: Hibachi Grill and Supreme Buffet Restaurant 10,800 SF East Side Spartanburg W K & B Manufacturing Neighborhood Center 8,000 SF Lower Spartanburg Fabric Emporium Community Center 7,520 SF East Side Spartanburg The Galleries of Brian Brigham Freestanding 6,877 SF Haywood Road Guadalajara Storefront 2,541 SF Greenville CBD The Pink Monogram Neighborhood Center 2,000 SF Haywood Road Some of the data in this report has been gathered from third party sources including CoStar Group, Inc. and has not been independently verified by NAI Earle Furman, LLC. NAI Earle Furman, LLC makes no warranties or representations as to the completeness or accuracy thereof. All rents are per SF/per YR unless otherwise noted. Construction is defined as total RBA under construction. The Upstate Market is defined by: Greenville, Anderson, Spartanburg, Cherokee and Pickens counties. NAI Earle Furman, LLC 101 East Washington Street, Suite 400 Greenville SC 29601

3 NAI Earle Furman, LLC Retail Report Second Quarter 2009 SUBMARKET/ # BLDGS. TOTAL RBA TOTAL AVAIL. TOTAL VACANT TOTAL NET TOTAL AVERAGE UNDER CLASS (SF) (SF) AVAIL (%) Absorption (SF) RATE ($/SF/YR) CONSTRUCTION (SF) Anderson ,149, , % 15,089 $ Greenville 3,219 31,523,547 2,279, % (71,237) $ ,551 Travelers Rest/ 365 3,079, , % (41,700) $ Cherrydale Wade Hampton 403 3,957, , % 4,296 $ West Greenville 468 3,351, , % 1,600 $ Pelham Rd ,471, , % (14,486) $ ,000 I-385/Woodruff Rd ,353, , % (14,212) $ ,269 Mauldin 181 1,540,521 41, % (4,000) $ ,693 Fairview Rd ,310, , % (5,080) $ ,000 South Greenville 197 1,192,011 70, % 900 $ Stone Ave/ ,581 65, % (8,900) $ E. North St. Greenville CBD ,153 39, % 337 $ Pleasantburg Dr ,189, , % 420 $ Augusta Rd ,552, , % (10,091) $ ,589 Haywood/Congaree 406 7,055, , % 19,679 $ & Woodruff Corridor Spartanburg 2,778 23,751,100 1,666, % (45,171) $ ,445 Upper Spartanburg 706 4,291, , % (12,604) $ East Side & Hwy 9 1,102 9,078, , % (21,686) $ ,000 West Side 582 7,791, , % (33,134) $ ,445 Lower Spartanburg 388 2,590, , % 22,253 $8.16 0

4 NAI Earle Furman, LLC Methodology / Definitions / Submarket Map Absorption (Net) The change in occupied space in a given time period. Available Square Footage Net rentable area considered available for lease; excludes sublease space. Average Asking Rental Rate Rental rate as quoted from each building s owner/ management company, For office space, a full service rate was requested; for retail, a triple net rate requested; for industrial, a triple net basis. Building Class Class A Product is office Space of steel and concrete construction, built after 1980, quality tenants, excellent amenities & premium rates. Class B product is office space built after 1980, fair to good finishes & wide range of tenants. Direct Vacancy Space currently available for lease directly with the landlord or building owner. Market Size Includes all existing and under construction office buildings (office, office condo, office loft, office medical, all classes and all sizes, both multi-tenant and singletenant, including owner-occupied buildings) within each market. Overall Vacancy All unoccupied lease space, either direct or sublease. SF/PSF Square foot/per square foot, used as a unit of measurement. West Greenville Travelers Rest/Cherrydale Midtown Uptown 15.3 million SF vacant 4.13% vacancy East rate Side & Hwy 9 $54.14 SF/YR avg. rental Wade Hampton Pelham Rd 4.88 million SF vacant Mauldin 4.7% vacancy rate Fairview Road $37.53 SF/YR avg. rental S. Greenville I-385/ Woodruff Rd Anderson Downtown 11.3 million SF vacant 4.o% vacancy rate $42.03 SF/YR avg. rental Upper Spartanburg West Side Greenville CBD Augusta Road Lower Spartanburg Stone Ave/E. North St. S. Pleasantburg Road N. Pleasantburg Road Haywood/ Congaree & Woodruff Rd. Corridor Sublease Arrangement in which a tenant leases rental property to another, and the tenant becomes the landlord to the subtenant. Sublease Space Total square footage being marketed for lease by the tenant. Sublease space is not considered in the overall occupancy or absorption numbers - only direct leases are included. Sublease Vacancy Space currently available in the market for sublease with an existing tenant within a building acting as the landlord.

5 Upstate in the News Theater could anchor more retail - Economy the wild card in development impact Tribune Times By Nathaniel Cary As construction crews clear trees from the site of Simpsonville's future movie theater complex on South Street, landowners of nearby property salivate over the development boost the theater could bring. Those prospects helped secure the land purchase for Aliance Entertainment, a New Albany, Indiana-based company that will build its 25th Great Escape Theater on nine acres on South Street midway between Fairview Road and West Georgia Road. The theater's ability to draw development close by excited Tommy Moore, developer of Cotton Mill Place, a condo and retail development midway between the theater site and downtown Simpsonville. He's already used the theater as a tool to market space to customers. We make sure that with every prospect, we emphasize that the theater is coming, Moore said. The theater is just a piece of the overall puzzle planned for the South Street site. The first notch, the upscale Garden District Apartments, opened in 2008, and Vision Capital Investors owns another 22 acres surrounding the theater that is zoned commercial. Original plans for the site call for 800,000 square feet of commercial space between Industrial Drive and South Street that would connect the theater with the rest of the development. That land adds to the total acreage prime for development surrounding the theater property. CB Richard Ellis, commercial real estate broker based in Columbia, has listed the 9.55-acre former Simpsonville Chevrolet site on South Street for sale at $3.5 million and called it prime for redevelopment as a retail site. We'd love to sell it to another dealership, but the dealership business isn't as great as it once was, said Tony Hanna, retail specialist with CBRE. So hopefully we can play off the theater coming in and create some retail sites. A movie theater can function as an anchor for retail developments but usually works best as one of several anchors with big box or junior-box stores, said Matt Covington, vice president of retail development with The Furman Co. increase in large retail and restaurant-type developments that would come to that area. page 1 of 2 Copyright (c) Tribune Times. All rights reserved.

6 Upstate in the News Theater could anchor more retail - Economy the wild card in development impact It's always good to have soft goods retailers, restaurants, entertainment to co-locate with a movie theater, Covington said. The development could build out more slowly with the slow economy, as most junior-box retailers have eliminated new store developments, even in strong markets with above-average income like Simpsonville, he said. Theaters have been talked about in Simpsonville for some time, so it's not surprising even in this economy that they made a commitment to open a theater, Covington said. It is going to be difficult to get the synergy of retail to go along with it. Conventional wisdom says that the theater would quickly draw retail and restaurants to the area, said Simpsonville Planning Director David Dyrhaug. But who knows what's conventional right now? he said. Common logic would suggest that there would be an increase in large retail and restaurant-type developments that would come to that area. Dyrhaug said there hasn't been any action yet on further projects and couldn't say with the economy whether it would be six months or two years before developers look at the nearby sites. Jim Marcus, vice president of development for Aliance Entertainment, said they may have gotten a better deal on their property purchase because of the market, but weren't worried about the long-term effects of the recession. Instead, they studied the area's growth potential and income range when making their decision to bring a theater to the city. It's a great town, Marcus said. We want to grow with it. page 2 of 2 Copyright (c) Tribune Times. All rights reserved.

7 Upstate in the News Master plan for Haywood Road includes amphitheater, new sidewalks The Greenville News - April 24, 2009 By Rudolph Bell, STAFF WRITER An amphitheater for family entertainment that could seat thousands is among the ideas a consultant has put forward for improving the Haywood Road area. Design firm Clark Patterson Lee studied ways of sprucing up Haywood Road on behalf of the city of Greenville and a group of businessmen and property owners concerned about keeping the commercial corridor vibrant in the wake of newer retail development along Woodruff Road. Other ideas in a draft master plan unveiled Thursday night include branding the area as "Uptown Greenville" in new signage and making it more pedestrian-friendly with new sidewalks and crosswalks. The study also suggests turning Haywood and Mall Connector roads into tree-lined boulevards with sidewalks. The amphitheater could be used for outdoor concerts, high school graduation ceremonies and smaller events such as weddings, said Kevin McOmber, a vice president with Clark Patterson Lee. A possible site for the amphitheater is 25 acres near Fluor Corp.'s campus where Charlotte developer Merrifield Partners was planning a mix of shopping, offices, housing and a hotel before the economy turned sour. The acreage near Haywood Mall runs along Old Airport Road between Woods Crossing Road and Timmons Drive and includes a lake. McOmber said his firm has been talking with Merrifield Partners about incorporating a public amphitheater into its plans and the developer is "encouraged" by the idea. The study also suggests improving the exterior of Haywood Mall, a possibility that city officials want to discuss further with mall owner Simon Property Group, said Nancy Whitworth, the city's economic development director. McOmber said his firm will put finishing touches on the plan by May for consideration by the city's Planning Commission and then City Council. The only money now available is $68,000 that could be used for signage, said Greg Strait, an economic development analyst for the city. Copyright (c) The Greenville News. All rights reserved.

8 Contact Us For more information on the Upstate Retail market please contact one of our specialists: Jimmy Wright Principal and Renee Dunlap Ted Lyerly, CCIM Tim Roller Bill Sims Jake Van Gieson

9 Additional Resources Complete listings of NAI Earle Furman s available properties Greenville Economic Development s goal is to promote and enhance the economic growth of Greenville County by serving as the single source contact for economic development in the greater Greenville area. Upstate Alliance is a public/private regional economic development organization designed to market the dynamic 10-county Upstate region to the world. - The Greater Greenville Chamber at its core is dedicated to promoting quality development of Upstate South Carolina through managed growth, service to members and the public, and a community-wide approach to issues shaping the region's future. Official website of Spartanburg County government Official website of Greenville County government - Officical website of Anderson county government - Provides information on trade, grants, rural development, and recycling. Includes databases of community profiles, labor market information, etc South Carolina's Information Highway is the largest directory of South Carolina information on the Internet.