Oklahoma City 2015 Mid-Year Office Market Summary

Transcription

1 Oklahoma City Mid-Year Office Market Summary

2 TABLE OF CONTENTS Office Market Summary 1 Central Business District Submarket 2 3 Northwest Submarket 4-7 North Submarket 8-10 Medical Office Submarket 10 Midtown Submarket 11 West Submarket Suburban Submarket 13 Submarket Map 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.

3 Oklahoma City Mid-Year Office Market Summary Despite slumping energy prices the Oklahoma City office market continues to achieve healthy vacancy rates and historically high rental rates. However, dark clouds are on the horizon as energy prices are not expected to markedly improve in the second half of the year and vacancy rates are expected to moderately increase. An increased inventory of space brought about by a handful of new projects will also test the market s health. Overall, the city s vacancy rate increased from 15.2% to 15.8%. However, average rental rates across the market continue to rise. The first six months of brought an increase from $17.46 per square foot to $17.89 per square foot. The Central Business District s vacancy rate increased from 20.7% to 22.. Although the CBD s Class A vacancy increased from 0.7% to 3. it is still next to impossible for larger Class A tenants to find any downtown space options. Consequently, average Class A rental rates continue to climb. The average Class A rate now stands at $23.30 per square foot, up from $21.75 per square foot at the end of and $19.62 per square foot just a year ago. The true test of the CBD s health will be measured in the next two years as new construction and building renovations add a significant amount of space to the Class A inventory and at rates significantly above the Class A average. Demolition is currently underway at the site of what will become 499 Sheridan Avenue, an approximately 663,000 SF tower that has preleased approximately half of its space to Devon Energy. Another large tenant is rumored to be close to executing a lease for over 100,000 SF, but that could still leave roughly 200,000 square feet to be leased to others in a market that is fighting an uncertain local economy. Additionally, Devon will be vacating approximately 250,000 SF in other CBD buildings when the building is completed. The market faced a similar challenge 3 years ago when Devon moved into its 1.7 million square foot headquarters and performed admirably; never really missing a beat as it rose to record levels of Class A occupancy and rental rates. Sandridge Energy, one of downtown s largest stakeholders, has placed its entire 650,000 square foot campus on the market for sale, but how that impacts the market remains to be seen. The 85,000 SF Braniff Building is 10 occupied by other users and the 76,000 SF Parkside building has never been occupied nor marketed to outside users. The approximately half million square foot Sandridge Tower is being offered on a sale leaseback basis. This entire transaction bears watching as it should provide a barometer for the market as well as the company as both fight to overcome a depressed energy market. The overall suburban vacancy rate ticked slightly upward from 12.5% to 12.7% and rental rates rose from $17.46 to $17.54 per square foot. The Northwest submarket, which is the city s largest, saw a slight vacancy increase from 8.5% to 8.9%. Rental rates rose from $17.95 to $18.15 per square foot. Long the bell cow of the suburban market, the Northwest submarket continues to have very little quality space available, with Class A vacancies currently at 2.2%. That number could increase dramatically as over 250,000 square feet is expected to be vacated by three large tenants in the next 12 months. However several large tenants are currently searching for space so any spike in the vacancy rate could be short-lived as this existing space can be leased at rental rates well below those of new construction. We expect the market to take quite a few hits in the next months but to weather the storm without too much of a spike in vacancies as the Oklahoma City economy remains relatively strong and diversified. We have frankly been a bit surprised the market has fared as well as it has in the face of $50 per barrel oil, but if prices remain low some fallout will occur as several companies have already announced significant layoffs and those companies will be looking to shed excess space either through sublease offerings or reduced footprints at lease renewal. Additionally the market will be dealing with new inventories of space brought about by new construction. If energy commodity pricing remains near current levels for another 12 months or more, we would not be surprised to see overall vacancy rates move up by as much as three percentage points during that period. (millions of square feet) 3 25% 15% 1 5% $20.00 $15.00 $ '06 '06 OKC Total Office Market Vacancy Market Vacancy '07 '07 '08 '08 '09 '09 CBD Vacancy '10 '10 '11 '11 '12 '12 Suburban Vacancy '13 '13 '14 OKC Total Office Market Inventory Occupied SF CBD Midtown Vacant SF OKC OFFICE MARKET RENTAL RATES Northwest North '14 West Suburban OKC TOTAL OFFICE MARKET ABSORPTION '15 '15 Mid-Year OKC Office Market Totals RSF 15,493,760 Vacant SF 2,444,242 Vacant % 15.8% Rate $

4 Mid-Year Oklahoma City Office Market Summary CENTRAL BUSINESS DISTRICT SUBMARKET 25% HISTORICAL CBD VACANCY MID-YEAR CENTRAL BUSINESS DISTRICT REVIEW Aggregate vacancy rates increased from 20.7% to % Class A vacancy increased from 0.7% to % Class B vacancy increased from 17.3% to 18.8% vacancy decreased from to 55.5% to 55.1% Aggregate rental rates increased from $18.15 per SF to $18.58 per SF HISTORICAL CBD RENTAL RATES BY CLASS Class A Class B $25.00 Class A rates increased from $21.75 per SF to $23.30 $22.00 $19.00 $16.00 $13.00 Class B rates decreased from $18.07 per SF to $17.60 per SF rates increased from $13.19 per SF to $13.31 per SF The CBD experienced absorption of 13,000 SF $10.00 CENTRAL BUSINESS DISTRICT FORECAST CENTRAL BUSINESS DISTRICT CBD OCCUPANCY BY CLASS Class A Class B Vacancy rates will remain near current levels until new buildings hit the market. Rental rates will only increase slightly as low energy prices weigh on the market. HISTORICAL CBD ABSORPTION Downtown Oklahoma City

5 Mid-Year Oklahoma City Office Market Summary CENTRAL BUSINESS DISTRICT SUBMARKET CBD Year Built Floors RSF Vacant SF Vacant % Rate CAF 100 Park Ave Building 1923/ ,752 21,329 21% $ % 100 Park Ave 101 Park Avenue Building ,042 68,445 34% $ % 101 Park Ave. 20 N. Broadway ,388 0 $ N Broadway Bank of Oklahoma Plaza ,816 5,119 2% $ Robert S. Kerr Braniff Building 10 90,000 0 $ N. Robinson Century Center Building 2 98,000 12,290 12% $ W Main Chase Tower (Cotter Ranch Tower) , ,818 4 $ % 100 N. Broadway City Place 1931/ ,449 23,602 9% $ % 204 N. Robinson Corporate Tower ,849 3,897 1% $ % 101 N. Robinson Court Plaza 1923/ ,381 18,757 23% $ % 228 Robert S. Kerr First National Center , ,079 67% $ % 120 N. Robinson Hightower Building ,152 4,581 4% $ % 105 N. Hudson Leadership Square ,514 48,845 6% $ N. Robinson Oklahoma Tower ,960 4,524 1% $ Park Ave. One North Hudson ,000 0 $ % 401 W. Sheridan Robinson Plaza ,702 0 $ N. Robinson Robinson Renaissance 1927/ ,840 48,107 27% $ % 119 N. Robinson Sonic Building ,654 0 $ % 300 Johnny Bench Drive The Reserve 1922/ ,616 0 $ Dean A. McGee Avenue 5,135,373 1,129,393 22% $18.58 CENTRAL BUSINESS DISTRICT CBD Construction Year Built Floors RSF Vacant SF Vacant % Rate CAF Journal Record Building 1923/ ,000 73,267 73% $ N. Robinson Totals 100,000 73,267 73% $

6 Mid-Year Oklahoma City Office Market Summary NORTHWEST SUBMARKET 1 8% HISTORICAL NORTHWEST VACANCY MID-YEAR NORTHWEST SUBMARKET REVIEW Aggregate vacancy rates increased from 8.5% to 8.8% 6% Class A vacancy decreased from 3.1% to 2.2% 4% 2% Class B vacancy increased from 9.2% to 10.4% vacancy decreased from 14.7% to 13.7% Aggregate rental rates increased from $17.95 per SF to $18.15 per SF HISTORICAL NORTHWEST RENTAL RATES BY CLASS Class A Class B $25.00 Class A rental rates increased from $22.37 per SF to $22.85 per SF $20.00 Class B rental rates increased from $17.15 per SF to $17.20 per SF rental rates increased from $13.65 per SF to $14.08 per SF $15.00 $10.00 The Northwest Oklahoma City submarket experienced negative absorption of 6,000 SF during. NORTHWEST SUBMARKET FORECAST NORTHWEST OCCUPANCY BY CLASS NORTHWEST Although demand remains strong, vacancy rates will continue to increase amid lower oil and gas prices. Over 300,000 SF of Class A space will hit this submarket in the next 12 months. Quoted rates will hold steady as landlords brace for potential cutbacks in the energy industry, which is heavily weighted toward this submarket. Class A Class B HISTORICAL NORTHWEST ABSORPTION IBC Center

7 Mid-Year Oklahoma City Office Market Summary NORTHWEST SUBMARKET NORTHWEST Quail Springs Parkway Plaza Northwest Year Built Floors RSF Vacant SF Vacant % Rate CAF Wireless Way ,852 0 $ % Wireless Way 2525 Expressway ,960 16,799 23% $ % 2525 Northwest Expressway 4100 Perimeter Center ,317 0 $ % 4100 Perimeter Center Dr Perimeter Center ,317 0 $ % 4101 Perimeter Center Dr Northwest Expressway ,464 0 $ % 4141 Northwest Expressway 4200 Perimeter Center ,327 5,013 8% $ % 4200 Perimeter Center Dr Gaillardia ,970 0 $ % 4700 Gaillardia Parkway 4727 Gaillardia ,624 0 $ % 4727 Gaillardia Parkway 4747 Gaillardia ,016 0 $ % 4747 Gaillardia Parkway 4801 Gaillardia ,432 0 $ % 4801 Gaillardia Parkway 4811 Gaillardia ,450 0 $ % 4811 Gaillardia Parkway 5100 Brookline ,496 4,888 4% $ % 5100 Brookline 5909 NW ,146 20,993 $ % 5909 Northwest Expressway 5

8 Mid-Year Oklahoma City Office Market Summary NORTHWEST SUBMARKET NORTHWEST Northwest Year Built Floors RSF Vacant SF Vacant % Rate CAF AAA Operations Center ,635 0 $ Quail Springs Parkway American Cancer Society ,000 0 $ Silver Crossing Atrium Towers ,106 0 $ % N.W. 63rd Avaya Building ,000 12,740 22% $ Hertz Quail Springs Parkway Bradley Square ,000 1,800 6% $ N.W. 122nd Brookline Offices ,009 1,397 3% $ N. Brookline Caliber Park One & Two ,208 0 $ % Caliber Drive Center ,800 24,476 21% $ % 3000 United Founders Blvd. Chase Bank Building ,793 3,829 7% $ % 6303 N Portland Ave Chase Park ,281 3,277 1 $ % 4323 NW 63rd St Commerce Center South ,857 0 $ % 9520 N. May Coppertree Centre ,928 1,200 4% $ N.W. 63rd Cross Rock Place ,049 0 $ % 3595 W Memorial Rd Cross Rock Plaza I ,289 0 $ % Wireless Way Enterprise Plaza ,180 1,345 1% $ % 5600 N. May FBI Building ,000 0 $ W. Memorial Fifty-Six Expressway Place ,340 19,258 33% $ N.W. 72nd Five Corporate Plaza ,486 0 $ % 3625 N.W. 56th Grand Centre ,217 13,938 13% $ % 5400 N.W. Grand Blvd. Hartford Insurance ,000 0 $ N.W. 85th Terrace HealthSmart Building ,000 0 $ % 3121 Quail Springs Parkway IBC Center ,843 3,549 1% $ % 3817 Northwest Expressway Jamestown Office Park 1972/ ,000 5,582 7% $ N.W 63rd Lake Park Tower ,036 71,828 68% $ % 6525 N. Meridian Lakepointe Towers ,600 58, % $ % Northwest Expressway Lakepointe West ,246 11,883 13% $ % 4045 N.W. 64th Lakeshore Tower ,900 3,310 9% $ % 4301 N.W. 63rd Landmark Towers 1969/ ,960 51,728 16% $ % NW 58th Mercury Insurance Building ,103 14,514 14% $ % 7301 Northwest Expressway North Shore Office Plaza ,418 0 $ % Hefner Drive Northwest Office Center ,833 4,414 5% $ % 4334 Northwest Expressway Oil Center 1973/ ,657 46,772 18% $ % 2601 Northwest Expressway One Corporate Plaza ,011 2,845 4% $ % 3525 NW. 56th 6

9 Mid-Year Oklahoma City Office Market Summary NORTHWEST SUBMARKET Northwest Year Built Floors RSF Vacant SF Vacant % Rate CAF Parkway Commons ,729 0 $ % N. Portland Portland Plaza ,425 0 $ % 5700 N. Portland Quail Commerce Center ,500 0 $ Quail Springs Parkway Quail Creek North ,124 1,970 5% $ % Quail Creek Rd. Quail Ridge Tower ,600 8,684 17% $ % N. May Quail Springs Parkway Plaza I & II ,610 1,271 1% $ % Quail Springs Parkway Rees Plaza at East Wharf ,998 0 $ % 9211 Lake Hefner Parkway Sprint PCS Building ,132 0 $ Silver Crossing St. Martins Building ,712 0 $ % 9020 N. May The Parkway Building ,619 15,157 21% $ % 3401 NW 63rd Street The Summit Building ,000 3,238 6% $ % 5929 N. May Three Corporate Plaza ,920 6,287 12% $ % 3613 NW. 56th Two Corporate Plaza ,551 0 $ % 5555 NW. Grand Blvd. Union Plaza ,802 25,046 1 $ % 3030 Northwest Expressway Williams Sonoma ,862 0 $ NW 84th St Totals 5,320, , % $18.15 Northwest Construction Year Built Floors RSF Vacant SF Vacant % Rate CAF 3250 Parkway Center 2 37,871 12,000 32% $ % 3250 Quail Springs Parkway Totals 37,871 12,000 32% $24.00 NORTHWEST 4801 Gaillardia 7

10 Mid-Year Oklahoma City Office Market Summary NORTH SUBMARKET HISTORICAL NORTH VACANCY MID-YEAR NORTH SUBMARKET REVIEW Aggregate vacancy rates decreased from 14.6% to 14.1% 15% Class A vacancy decreased from 7.5% to 4.6% 1 Class B vacancy increased from 6.9% to 7.2% 5% vacancy decreased from 61.3% to 61.1% Aggregate rental rates increased from $17.50 per SF to $17.87 per SF HISTORICAL NORTH RENTAL RATES BY CLASS Class A Class B $25.00 Class A rental rates remained $21.85 per SF Class B rental rates increased from $17.14 per SF to $17.72 per SF $20.00 rental rates held steady at $12.52 per SF $15.00 The Oklahoma City North submarket experienced positive absorption of 9,000 SF $10.00 NORTH SUBMARKET FORECAST NORTH OCCUPANCY BY CLASS Vacancy rates should contine to trend downward 10 Rental rates will remain near current levels. 8 NORTH 6 4 Class A Class B HISTORICAL NORTH ABSORPTION North Year Built Floors RSF Vacant SF Vacant % Rate CAF 1001 Wilshire ,316 0 $ % 1001 W Wilshire Ave 4345 N. Lincoln 3 160,000 0 $ N. Lincoln 50 Penn Place ,315 13,303 7% $ % 5100 N. Pennsylvania 5100 Circle Building ,799 0 $ % 5100 N. Classen Blvd. 8 The Waterford

11 Mid-Year Oklahoma City Office Market Summary NORTH SUBMARKET North Year Built Floors RSF Vacant SF Vacant % Rate CAF 5701 N. Shartel ,102 0 $ % 5701 N. Shartel 7 & 9 Broadway Executive Park ,505 0 $ NW 66th Broadway North ,703 4,259 16% $ % 7301 N. Broadway Broadway Plaza ,726 0 $ % 16 NW 63rd Broadway Sixty-Eight ,000 0 $ % 6801 N. Broadway Central Park One ,134 0 $ % 525 Central Park Dr. Central Park Two ,463 0 $ % 515 Central Park Dr. Chase Bank Building ,701 2,500 7% $ % 1200 NW 63rd St Columbus Square ,559 0 $ % 1001 NW 63rd Five North Broadway ,805 15,971 35% $ % 6601 N. Broadway Harvey Parkway ,912 0 $ % 301 NW 63rd Kemper Insurance Buidling ,830 0 $ E. Britton Lincoln Plaza Office Park , ,093 92% $ % 4545 Lincoln Blvd. Market Center I ,368 0 $ Market Dr Market Center II ,000 0 $ % 713 Market Dr Nichols Hills Executive Center ,426 0 $ W. Wilshire Nichols Hills Tower ,101 9,309 31% $ % 6410 Avondale Dr One Benham Place ,959 33,347 21% $ % 9400 N. Broadway One Broadway Center ,984 0 $ % 100 NW 63rd One Broadway Executive Park ,832 0 $ % 201 NW 63rd One Western Plaza ,948 14,546 28% $ % 5500 N. Western Paragon Building ,791 8,907 8% $ % 5801 N. Broadway Pavilion Building ,895 0 $ % 6701 N. Broadway Penn Park ,643 18,310 23% $ % N. Penn Registry ,167 18,860 $ % 2200 NW 50th Richmond Square ,606 4,709 17% $ % 4900 Richmond Square Santa Fe North ,000 2,038 4% $ % 6 NE. 63rd The Commons on Broadway ,188 1,686 3% $ % Broadway Extension Three Broadway Executive Park ,256 21,354 47% $ N. Broadway Two Broadway Executive Park ,205 9,047 17% $ % 205 NW 63rd Valliance Tower ,137 3,532 1% $ % 1601 Northwest Expressway Waterford A ,048 6,268 4% $ % 6301 Waterford Blvd. Waterford B ,468 7,889 22% $ % 6303 Waterford Blvd. Waterford C ,575 7,606 9% $ % 6305 Waterford Blvd. Waterford D ,087 3,227 9% $ % 6307 Waterford Blvd. Totals 3,061, , % $17.87 NORTH 9

12 Mid-Year Oklahoma City Office Market Summary MEDICAL OFFICE SUBMARKET NORTH Medical Year Built Floors RSF Vacant SF Vacant % Rate CAF Deaconess Medical North ,209 4,159 7% $ N Portland Ave Deaconess Medical South ,726 4,477 3% $ N Portland Ave McAuley Physician Offices ,246 0 $ McAuley Blvd NeuroScience Institute ,558 1,254 2% $ W Memorial Rd Northwest Medical Center ,664 0 $ % 3330 NW 56th St Parkway Commons Medical Center ,000 0 $ % Parkway Commons Dr Parkway Medical Center ,983 0 $ NW 56th St Pasteur Medical Building ,858 5,852 6% $ % 1111 N. Lee Ave. Physicians & Surgeons Bldg ,000 14,947 19% $ N Shartel Ave Physicians Bldg - A ,349 4,440 6% $ % 3435 NW 56th St Physicians Bldg - B ,030 7,136 5% $ % 3433 NW 56th St Physicians Bldg - C ,158 0 $ % 3400 NW Expressway Physicians Bldg - D ,813 2,518 2% $ % 3366 NW Expressway Plaza Physician Offices ,050 6,572 9% $ W Memorial Rd Presbyterian Professional Bldg ,122 0 $ % 711 Stanton L Young Quail Brook Medical ,222 2,462 7% $ % McAuley Blvd Saints Medical Plaza ,010 0 $ % NW 9th St & N Walker Ave SMC Medical Office Bldg ,054 3,215 11% $ S Douglas Ave SMC Medical Plaza ,648 0 $ S Western Ave St. Anthony ASC ,551 2,897 7% $ % 6205 N Santa Fe Ave St. Anthony Healthplex East 3 52,675 6,454 12% $ % 3400 S. Douglas Blvd. St. Anthony Healthplex North 4 96,422 2,240 2% $ N. Western St. Anthony Healthplex South 3 52,675 9,093 17% $ % S. Tulsa Ave St. Anthony North POB ,281 2,197 7% $ % 6201 N Santa Fe Ave St. Anthony Prof. Bldg ,898 3,922 4.% $ % 608 NW 9th St Tower Physicians Offices ,639 2,571 2% $ W Memorial Rd Totals 1,786,841 86, % $ St. Anthony Healthplex

13 Mid-Year Oklahoma City Office Market Summary MIDTOWN SUBMARKET 15% 1 HISTORICAL MIDTOWN VACANCY MID-YEAR MIDTOWN SUBMARKET REVIEW Aggregate vacancy rates increased from 16.4% to 16.7% Class B vacancy rates increased from 17.3% to 17.8% 5% vacancy rates decreased from 7.2% to 5.4% Aggregate rental rates increased from $14.69 per SF to $15.98 per SF $18.00 $16.00 HISTORICAL MIDTOWN RENTAL RATES $20.00 Class B Class B rental rates increased from $14.99 per SF to $16.41 per SF rental rates remained level at $11.57 per SF The Midtown Submarket experienced negative absorption of 3,000 SF $14.00 MIDTOWN SUBMARKET FORECAST $12.00 Vacancy rates will likely remain near current levels for the remainder of the year. $10.00 Rental rates will remain at or near current levels. MIDTOWN OCCUPANCY MIDTOWN Class B HISTORICAL MIDTOWN ABSORPTION Mid-Year Oklahoma City Office Market Summary MIDTOWN SUBMARKET Midtown Year Built Floors RSF Vacant SF Vacant % Rate CAF 2000 Classen Center ,605 0 $ % 2000 N Classen Blvd 4801 Classen Building ,151 6,216 18% $ N Classen Blvd Cameron Building 1955/ ,493 0 $ Classen Blvd Classen Park I ,800 3,700 7% $ % 3700 N Classen Blvd Classen Park II ,800 0 $ % 3800 N Classen Blvd Santa Fe Building 1954/ ,203 7,491 13% $ N. Santa Fe Ave. Shepherd Mall Office Complex 1964/ , ,981 28% $ NW 23rd Street Totals 1,303, , % $15.98 The Cameron Building 11

14 Mid-Year Oklahoma City Office Market Summary WEST SUBMARKET 4 35% 3 25% 15% 1 HISTORICAL WEST VACANCY MID-YEAR WEST SUBMARKET REVIEW Aggregate vacancy rates decreased from 31.8%to 29.2% Class B vacancy totals increased from 30.3% to 31.5% vacancy totals decreased from 34.1% to 24.1% 5% Aggregate rental rates increased from $12.45 per SF to $14.21 per SF Class B rental rates increased from $12.63 per SF to $14.77 per SF HISTORICAL WEST RENTAL RATES BY CLASS $15.00 Class B rental rates increased from $12.18 per SF to $12.92 per SF The West Oklahoma City Office Market experienced positive absorption of 132,000 SF due to the inclusion of the OKC Works Building 20 into our market report. $12.00 WEST SUBMARKET FORECAST Vacancy rates should improve slightly $9.00 Rental rates in the submarket should remain flat for the rest of the year WEST OCCUPANCY BY CLASS 8 7 WEST Class B HISTORICAL WEST ABSORPTION West Construction Year Built Floors RSF Vacant SF Vacant % Rate CAF Westgate One 5 200, , $ % West Reno Totals 200, , $ The Parkway

15 Mid-Year Oklahoma City Office Market Summary WEST SUBMARKET West Year Built Floors RSF Vacant SF Vacant % Rate CAF 300 Meridian Place ,650 11,292 14% $ % 300 N Meridian Ave Bank 2 Tower ,520 22,904 34% $ % 909 S. Meridian Metro Office Park ,750 15,157 24% $ Highline Blvd. OKCWorks - OKC ,165 75,000 44% $ % 7725 W. Reno Avenue Sovereign Office Park ,260 17,600 41% $ Sovereign Row The Parkway ,960 54,723 56% $ % 1300 S. Meridian West Park Office Center ,786 0 $ Metropolitan Will Rogers Office Park ,779 0 $ % 4400 Will Rogers Parkway Will Rogers Office Park ,748 0 $ Will Rogers Parkway Totals 672, , % $14.21 SUBURBAN OCCUPANCY BY CLASS Mid-Year Oklahoma City Office Market Summary SUBURBAN SUBMARKET WEST 4 MID-YEAR SUBURBAN SUBMARKET REVIEW Aggregate vacancy rates increased from 12.5% to 12.7% Class A Class B Class A vacancy decreased from 4.5% to 3. HISTORICAL SUBURBAN RENTAL RATES BY CLASS $25.00 Class A Class B Class B vacancy increased from 11. to 12.2% $20.00 vacancy decreased from 29. to 26.9% Aggregate rental rates increased from $17.46 per SF to $17.54 per SF $15.00 Class A rental rates increased from $22.20 per SF to $22.53 per SF $10.00 Class B rental rates increased from $16.55 per SF to $17.04 per SF HISTORICAL SUBURBAN ABSORPTION rental increased from $13.04 per SF to $13.34 per SF Suburban Oklahoma City experienced positive absorption of 146,000 SF during the first half of SUBURBAN SUBMARKET FORECAST Suburban rental rates should near current levels Suburban vacancy rates should increase slightly until oil prices stabilize and improve Suburban Submarket Totals 10,358,387 1,314, % $

16 Price Edwards & Company Technology As a forward thinking company, Price Edwards & Company strives to stay on the cutting edge of business technology. We maintain a five-member, full-time Information Technology staff, which allows us to custom develop and provide products and services to help our clients achieve their real estate goals. priceedwards.com Hundreds of tenant prospect, buyer, and seller leads originate from our primary Internet presence: priceedwards.com. Through the website, we maintain a comprehensive listing of all the properties we represent. Our website also houses staff bios, press releases, market studies, and functions as a gateway to our various other online tools. Search engine optimization is a priority for priceedwards.com and ensures that our listings rank among the top of Internet searches. Price Edwards deployed a mobile version of priceedwards. com that uses the GPS in smartphones to help located nearby properties and quickly put clients in contact with brokers. Work Order System We have created our own work order system to service our tenants. Building engineers are instantly notified on their phones via text message. The real power of our system is found in its ability to report on the status of a work order. Price Edwards can report on all open work orders by property, by engineer, or by status. Using our system allows us to identify trends or problems early. This information can be included in monthly reports delivered via on a schedule providing a higher level of transparency. Client Reporting The Price Edwards & Company Extranet uses Microsoft SharePoint to deliver unparalleled client reporting. Through our secure website, clients can instantly receive all monthly reports. In addition, clients have access to all historical reports, copies of lease files, and contract information with profiles of all the Price Edwards staff assigned to their asset. Market Data Price Edwards & Company has been the top source for Oklahoma City commercial real estate data for over twenty years. Our popular semi-annual market summaries have now been taken interactive. Price Edwards launched okcmarketdata.com in This web app version of our market summaries allows the user to slice and dice the Oklahoma City commercial real estate market by asset type, lease rates, submarket, and sales date. Properties represented by Price Edwards have extended information including available suites, floor plans, and photos. Marketing Our marketing program is second to none. We maintain a list of thousands of investor and real estate professional contacts, and use that information to market an asset to a target audience, assuring maximum exposure. Our strategy encourages a potential client to follow up via priceedwards. com and allows us to track the response of a particular message. Mobile Apps Price Edwards & Company developed its own native iphone and ipad applications, now available in the Apple App Store. The products allow users, free of charge, to review property data on office buildings, shopping centers, industrial projects, and apartment communities across the Oklahoma City metro area. Information includes: lease rates, occupancy, sales history, performance relative to the market and other useful tools for property owners and investors. The ipad app also features content from Price Edwards commercial real estate market summaries. Development is underway to port the apps to run on Google s Android platform. Price Edwards is the only firm to provide apps specific to the Oklahoma City commercial real estate market. Price Edwards & Company 210 Park Avenue, Suite 1000, Oklahoma City, OK Phone (405) Fax (405)