The CoStar Retail Report

Transcription

1 The CoStar Retail Report Y E A R - E N D

2 YEAR-END 2011 KANSAS CITY Table of Contents Table of Contents A Methodology B Terms & Definitions C Market Highlights & Overview CoStar Markets & Submarkets Inventory & Development Analysis Construction Activity Map Inventory & Development Analysis Select Top Deliveries Select Top Under Construction Properties Figures at a Glance Figures at a Glance by Building Type & Market Figures at a Glance by Building Type & Submarket Historical Figures at a Glance Leasing Activity Analysis Leasing Activity Map Leasing Activity Analysis Select Top Lease Transactions Sales Activity Analysis Sales Activity Analysis Select Top Sales Transactions Select Same Building Sales Select Land Sales Analysis of Individual CoStar Markets Downtown Market East Jackson County Market Kansas City KS Market Midtown Market North Johnson County Market North of the River Market South Johnson County Market South KC Market Southeast Jackson County Market 2012 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT A

3 KANSAS CITY YEAR-END 2011 Methodology The CoStar Retail Report calculates Retail statistics using CoStar Group's base of existing, under construction and under renovation Retail buildings in each given metropolitan area. All Retail building types are included, including Community Center, Freestanding Retail, Neighborhood Center, Power Center, Regional Mall, Specialty Center and Unanchored Strip Center, in both single-tenant and multitenant buildings, including owner-occupied buildings. CoStar Group's national database includes approximately 80.7 billion square feet of coverage in 3.5 million properties. All rental rates reported in the CoStar Retail Report are calculated using Triple Net (NNN) rental rates. For information on subscribing to CoStar s other products and services, please contact us at COSTAR, or visit our web site at Copyright 2012 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of the information contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness or completeness of the information. The publication is provided as is and CoStar expressly disclaims any guarantees, representations or warranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. CoStar Group, Inc. 2 Bethesda Metro Center Bethesda, MD USA (800) NASDAQ: CSGP B THE COSTAR RETAIL REPORT 2012 COSTAR GROUP, INC.

4 YEAR-END 2011 KANSAS CITY Terms & Definitions Anchor Tenant: A large national or regional retailer that serves as a primary draw for a shopping center; a store strategically located in a retail property in order to enhance, bring attention to, or increase traffic at the property. Sometimes called a destination tenant, usually these tenants lease at least 25,000 SF. Availability Rate: The ratio of available space to total rentable space, calculated by dividing the total available square feet by the total rentable square feet. Available Space: The total amount of space that is currently being marketed as available for lease in a given time period. It includes any space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date. Buyer: The individual, group, company, or entity that has purchased a commercial real estate asset. Cap Rate: Short for capitalization rate. The Cap Rate is a calculation that reflects the relationship between one year s net operating income and the current market value of a particular property. The Cap Rate is calculated by dividing the annual net operating income by the sales price (or asking sales price). Community Center: A shopping center development that has a total square footage between 100, ,000 SF. Generally will have 2-3 large anchored tenants, but not department store anchors. Community Center typically offers a wider range of apparel and other soft goods than the Neighborhood Center. Among the more common anchors are supermarkets and super drugstores. Community Center tenants sometime contain retailers selling such items as apparel, home improvement/furnishings, toys, electronics or sporting goods. The center is usually configured as a strip, in a straight line, or an L or U shape. Construction Starts: Buildings that began construction during a specific period of time. (See also: Deliveries) Deliveries: Buildings that complete construction during a specified period of time. In order for space to be considered delivered, a certificate of occupancy must have been issued for the property. Delivery Date: The date a building completes construction and receives a certificate of occupancy. Developer: The company, entity or individual that transforms raw land to improved property by use of labor, capital and entrepreneurial efforts. Direct Space: Space that is being offered for lease directly from the landlord or owner of a building, as opposed to space being offered in a building by another tenant (or broker of a tenant) trying to sublet a space that has already been leased. : The square footage of buildings that have received a certificate of occupancy and are able to be occupied by tenants. It does not include space in buildings that are either planned, under construction or under renovation. Freestanding Retail: Single tenant building with a retail tenant. Examples include video stores, fast food restaurant, etc. Full Service Rental Rate: Rental rates that include all operating expenses such as utilities, electricity, janitorial services, taxes and insurance. General Retail: Typically are single tenant freestanding generalpurpose commercial buildings with parking. Many single retail buildings fall into this use code, especially when they don t meet any of the more detailed use code descriptions. Growth in Inventory: The change in size of the existing square footage in a given area over a given period of time, generally due to the construction of new buildings. Landlord Rep: (Landlord Representative) In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the owner/landlord is referred to as the Landlord Rep. Leased Space: All the space that has a financial lease obligation. It includes all leased space, regardless of whether the space is currently occupied by a tenant. Leased space also includes space being offered for sublease. Leasing Activity: The volume of square footage that is committed to and signed under a lease obligation for a specific building or market in a given period of time. It includes direct leases, subleases and renewals of existing leases. It also includes any pre-leasing activity in planned, under construction, or under renovation buildings. Lifestyle Center: An upscale, specialty retail, main street concept shopping center. An open center, usually without anchors, about 300,000 SF GLA or larger, located near affluent neighborhoods, includes upscale retail, trendy restaurants and entertainment retail. Nicely landscaped with convenient parking located close to the stores. Mall: The combined retail center types of Lifestyle Center, Regional Mall and Super Regional Mall. Market: Geographic boundaries that serve to delineate core areas that are competitive with each other and constitute a generally accepted primary competitive set of areas. Markets are buildingtype specific, and are non-overlapping contiguous geographic designations having a cumulative sum that matches the boundaries of the entire Region (See also: Region). Markets can be further subdivided into Submarkets. (See also: Submarkets) Multi-Tenant: Buildings that house more than one tenant at a given time. Usually, multi-tenant buildings were designed and built to accommodate many different floor plans and designs for different tenant needs. (See also: Tenancy). Neighborhood Center: Provides for the sales of convenience goods (food, drugs, etc.) and personal services (laundry, dry cleaning, etc.) for day-to-day living needs of the immediate neighborhood with a supermarket being the principal tenant. In theory, the typical GLA is 50,000 square feet. In practice, the GLA may range from 30,000 to 100,000 square feet. Net Absorption: The net change in occupied space over a given period of time. Unless otherwise noted Net Absorption includes direct and sublease space. New Space: Sometimes called first generation space, refers to space that has never been occupied and/or leased by a tenant. Occupied Space: Space that is physically occupied by a tenant. It does not include leased space that is not currently occupied by a tenant. Outlet Center: Usually located in a rural or occasionally in a tourist location, an Outlet Center consists of manufacturer s outlet stores selling their own brands at a discount. 50, ,000 SF. An Outlet Center does not have to be anchored. A strip configuration is most common, although some are enclosed malls and others can be arranged in a village cluster. Owner: The company, entity, or individual that holds title on a given building or property. Planned/Proposed: The status of a building that has been announced for future development but not yet started construction. Power Center: The center typically consists of several freestanding (unconnected) anchors and only a minimum amount of small specialty tenants. 250, ,000 SF. A Power Center is dominated by several large anchors, including discount department stores, off-price stores, warehouse clubs, or "category killers," i.e., 2012 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT C

5 KANSAS CITY YEAR-END 2011 stores that offer tremendous selection in a particular merchandise category at low prices. Preleased Space: The amount of space in a building that has been leased prior to its construction completion date, or certificate of occupancy date. Price/SF: Calculated by dividing the price of a building (either sales price or asking sales price) by the Rentable Building Area (RBA). Quoted Rental Rate: The asking rate per square foot for a particular building or unit of space by a broker or property owner. Quoted rental rates may differ from the actual rates paid by tenants following the negotiation of all terms and conditions in a specific lease. RBA: Abbreviation for Rentable Building Area. (See also: Rentable Building Area) Region: Core areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Regions are further divided into market areas, called Markets. (See also: Markets) Regional Mall: Provides shopping goods, general merchandise, apparel, and furniture, and home furnishings in full depth and variety. It is built around the full-line department store with a minimum GLA of 100,000 square feet, as the major drawing power. For even greater comparative shopping, two, three, or more department stores may be included. In theory a regional center has a GLA of 400,000 square feet, and may range from 300,000 to more than 1,000,000 square feet. Regional centers in excess of 750,000 square feet GLA with three or more department stores are considered Super Regional. (See also: Super Regional Mall). Relet Space: Sometimes called second generation or direct space, refers to existing space that has previously been occupied by another tenant. Rentable Building Area: (RBA) The total square footage of a building that can be occupied by, or assigned to a tenant for the purpose of determining a tenant s rental obligation. Generally RBA includes a percentage of common areas including all hallways, main lobbies, bathrooms, and telephone closets. Rental Rates: The annual costs of occupancy for a particular space quoted on a per square foot basis. Sales Price: The total dollar amount paid for a particular property at a particular point in time. Sales Volume: The sum of sales prices for a given group of buildings in a given time period. Seller: The individual, group, company, or entity that sells a particular commercial real estate asset. SF: Abbreviation for Square Feet. Shopping Center: The combined retail center types of Community Center, Neighborhood Center and Strip Center. Single-Tenant: Buildings that are occupied, or intended to be occupied by a single tenant. (See also: Build-to-suit and Tenancy) Specialty Center: The combined retail center types of Airport Retail, Outlet Center and Theme/Festival Center. Sports & Entertainment: A facility suited for recreational activities, including: Amusement Facility, Aquatic Facility/Swimming Pool, Bowling Alley, Casino/Gaming Facility, Equestrian Center/ Stable, Fitness, Court and Spa Facility, Golf Related, Racetrack, Skating Rink, Ski Resort, Sports Arena/Stadium, and Theatre/ Performing Art Facility. Strip Center: A strip center is an attached row of stores or service outlets managed as a coherent retail entity, with on-site parking usually located in front of the stores. Open canopies may connect the storefronts, but a strip center does not have enclosed walkways linking the stores. A strip center may be configured in a straight line, or have an "L" or "U" shape. Sublease Space: Space that has been leased by a tenant and is being offered for lease back to the market by the tenant with the lease obligation. Sublease space is sometimes referred to as sublet space. Submarkets: Specific geographic boundaries that serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted primary competitive set, or peer group. Submarkets are building type specific (office, industrial, retail, etc.), with distinct boundaries dependent on different factors relevant to each building type. Submarkets are non-overlapping, contiguous geographic designations having a cumulative sum that matches the boundaries of the Market they are located within (See also: Market). Super Regional Mall: Similar to a regional mall, but because of its larger size, a super regional mall has more anchors, a deeper selection of merchandise, and draws from a larger population base. As with regional malls, the typical configuration is as an enclosed mall, frequently with multiple levels (See also: Regional Mall). Tenancy: A term used to indicate whether or not a building is occupied by multiple tenants (See also: Multi-tenant) or a single tenant. (See also: Single-tenant) Tenant Rep: Tenant Rep stands for Tenant Representative. In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the tenant is referred to as a Tenant Rep. Theme/Festival Center: These centers typically employ a unifying theme that is carried out by the individual shops in their architectural design and, to an extent, in their merchandise. Sometimes the biggest appeal of these centers is to tourists; they can be anchored by restaurants and entertainment facilities. These centers, generally located in urban areas, tend to be adapted from older, sometimes historic, buildings, and can be part of mixed-use projects. 80, ,000 SF. Under Construction: The status of a building that is in the process of being developed, assembled, built or constructed. A building is considered to be under construction after it has begun construction and until it receives a certificate of occupancy. Rate: A measurement expressed as a percentage of the total amount of physically vacant space divided by the total amount of existing inventory. Under construction space generally is not included in vacancy calculations. Vacant Space: Space that is not currently occupied by a tenant, regardless of any lease obligation that may be on the space. Vacant space could be space that is either available or not available. For example, sublease space that is currently being paid for by a tenant but not occupied by that tenant, would be considered vacant space. Likewise, space that has been leased but not yet occupied because of finish work being done, would also be considered vacant space. Weighted Average Rental Rate: Rental rates that are calculated by factoring in, or weighting, the square footage associated with each particular rental rate. This has the effect of causing rental rates on larger spaces to affect the average more than that of smaller spaces. The weighted average rental rate is calculated by taking the ratio of the square footage associated with the rental rate on each individual available space to the square footage associated with rental rates on all available spaces, multiplying the rental rate by that ratio, and then adding together all the resulting numbers. Unless specifically specified otherwise, rental rate averages include both Direct and Sublet available spaces. Year Built: The year in which a building completed construction and was issued a certificate of occupancy. YTD: Abbreviation for Year-to-Date. Describes statistics that are cumulative from the beginning of a calendar year through whatever time period is being studied. D THE COSTAR RETAIL REPORT 2012 COSTAR GROUP, INC.

6 OVERVIEW YEAR-END 2011 KANSAS CITY Kansas City s Stays at 9.5% Net Absorption Positive 6,800 SF in the Quarter The Kansas City retail market did not experience much change in market conditions in the fourth quarter The vacancy rate went from 9.5% in the previous quarter to 9.5% in the current quarter. Net absorption was positive 6,800 square feet, and vacant sublease space decreased by (556) square feet. Quoted rental rates decreased from third quarter 2011 levels, ending at $12.39 per square foot per year. A total of five retail buildings with 32,601 square feet of retail space were delivered to the market in the quarter, with 79,548 square feet still under construction at the end of the quarter. Net Absorption Retail net absorption was basically flat in Kansas City fourth quarter 2011, with positive 6,800 square feet absorbed in the quarter. In third quarter 2011, net absorption was positive 414,280 square feet, while in second quarter 2011, absorption came in at positive 148,264 square feet. In first quarter 2011, positive 119,500 square feet was absorbed in the market. Some of the notable move-out s occurring in 2011 includes borders closing stored in Kansas City and Overland Park as well as Bassett Furniture vacating 20,500 square feet at Olathe Station. Some of the notable move-in s of 2011 include: Hyvee opening stores of 86,267 square feet at 109 N Blue Jay Drive and 70,357 square feet at 5300 NW 64th st, Dick s sporting Good s moving into 45,000 square feet at W college; and Nordstrom Rack moving into 34,925 square feet at 9510 Quivira Rd. Kansas City s retail vacancy rate changed in the fourth quarter 2011, ending the quarter at 9.5%. Over the past four quarters, the market has seen an overall decrease in the vacancy rate, with the rate going from 9.9% in the first quarter 2011, to 9.8% at the end of the second quarter 2011, 9.5% at the end of the third quarter 2011, to 9.5% in the current quarter. The amount of vacant sublease space in the Kansas City market has trended up over the past four quarters. At the end of the first quarter 2011, there were 458,741 square feet of vacant sublease space. Currently, there are 501,868 square feet vacant in the market. Notable Lease Signings Some of the notable lease signings occurring in 2011 included: the 45,000 square foot deal signed by Dick s Sporting Goods at Liberty Triangle, the 34,925-square-foot-deal signed by Nordstrom Rack at 9510 Quivira Rd; the 33,166-square-footlease signed by Bed Bath & Beyond at The Pavillions At Hartman Heritage Center; and the 33,000-square foot lease signed by Legoland Discovery Center at Crown Center. Rental Rates Average quoted asking rental rates in the Kansas City retail market are down over previous quarter levels, and unchanged from their levels four quarters ago. Quoted rents ended the fourth quarter 2011 at $12.39 per square foot per year. That compares to $12.52 per square foot in the third quarter 2011, and $12.39 per square foot at the end of the first quarter Rates by Building Type Power Center Specialty Center General Retail Shopping Center Mall Total Market 43% 38% 33% 28% 23% 18% 13% 8% 3% q q q q q q q q q q q q 2012 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 1

7 KANSAS CITY YEAR-END 2011 OVERVIEW This represents a 1.0% decrease in rental rates in the current quarter, and a 0.00% from four quarters ago. Inventory & Construction During the fourth quarter 2011, five buildings totaling 32,601 square feet were completed in the Kansas City retail market. Over the past four quarters, a total of 317,647 square feet of retail space has been built in Kansas City. In addition to the current quarter, four buildings with 131,093 square feet were completed in third quarter 2011, three buildings totaling 13,447 square feet completed in second quarter 2011, and 140,506 square feet in seven buildings completed in first quarter There were 79,548 square feet of retail space under construction at the end of the fourth quarter Some of the notable 2011 deliveries include: 109 N Blue Jay Dr, an 86,267-square-foot facility that delivered in first quarter 2011 and is now 100% occupied, and 5330 NW 64th St, a 70,357-square-foot building that delivered in third quarter 2011 and is now 100% occupied. Total retail inventory in the Kansas City market area amounted to 105,702,270 square feet in 6,637 buildings and 715 centers as of the end of the fourth quarter Shopping Center The Shopping Center market in Kansas City currently consists of 673 projects with 38,743,428 square feet of retail space in 1,541 buildings. In this report the Shopping Center market is comprised of all Community Center, Neighborhood Center, and Strip Centers. After absorbing 53,358 square feet and delivering 6,500 square feet in the current quarter, the Shopping Center sector saw the vacancy rate go from 14.3% at the end of the third quarter 2011 to 14.2% this quarter. Over the past four quarters, the Shopping Center vacancy rate has gone from 14.6% at the end of the first quarter 2011, & Rent Past 10 Quarters Price in Dollars per Unit $13 $13 $13 $13 $12 $12 $ Average Rental Rate Rate q 2q 4q 2q 4q 10.4% 10.2% 10.0% 9.8% 9.6% 9.4% 9.2% 9.0% Rate Percentage to 14.7% at the end of the second quarter 2011, to 14.3% at the end of the third quarter 2011, and finally to 14.2% at the end of the current quarter. Rental rates ended the fourth quarter 2011 at $12.06 per square foot, down from the $12.20 they were at the end of third quarter Rental rates have trended up over the past year, going from $12.04 per square foot a year ago to their current levels. Net absorption in the Shopping Center sector has totaled 210,664 square feet over the past four quarters. In addition to the positive 53,358 square feet absorbed this quarter, positive 171,398 square feet was absorbed in the third quarter 2011, negative (4,527) square feet was absorbed in the second quarter 2011, and negative (9,565) square feet was absorbed in the first quarter Power Centers The Power Center average vacancy rate was 6.9% in the fourth quarter With negative (5,443) square feet of net absorption and no new deliveries, the vacancy rate went from 6.8% at the end of last quarter to 6.9% at the end of the fourth quarter. In the third quarter 2011, Power Centers absorbed positive 65,592 square feet, delivered no new space, and the vacancy rate went from 7.6% to 6.8% over the course of the quarter. Rental rates started the quarter at $16.93 per square foot and ended the quarter at $17.52 per square foot. A year ago, in fourth quarter 2010, the vacancy rate was 7.1%. Over the past four quarters, Power Centers have absorbed a cumulative 25,549 square feet of space and delivered cumulative 6,195 square feet of space. Vacant sublease space has gone from 28,500 square feet to 0 square feet over that time period, and rental rates have gone from $16.16 to $ At the end of the fourth quarter 2011, there was no space under construction in the Kansas City market. The total stock of Power Center space in Kansas City currently sits at 8,376,520 square feet in 20 centers comprised of 170 buildings. No space was under construction at the end of the fourth quarter General Retail Properties The General Retail sector of the market, which includes all freestanding retail buildings, except those contained within a center, reported a vacancy rate of 7.1% at the end of fourth quarter There was a total of 3,103,327 square feet vacant at that time. The General Retail sector in Kansas City currently has average rental rates of $11.10 per square foot per year. There are 64,961 square feet of space under construction in this sector, with 10,416 square feet having been completed in the fourth quarter. In all, there are a total of 4,684 buildings with 43,824,324 square feet of General Retail space in Kansas City. Source: CoStar Property 2 THE COSTAR RETAIL REPORT 2012 COSTAR GROUP, INC.

8 Specialty Centers There are currently four Specialty Centers in the Kansas City market, making up 948,206 square feet of retail space. In this report the Specialty Center market is comprised of Outlet Center, Airport Retail and Theme/Festival Centers. Specialty Centers in the Kansas City market have experienced negative (1,045) square feet of net absorption in The vacancy rate currently stands at 15.4%, and rental rates average $7.95 per square foot. Malls Malls recorded net absorption of positive 22,668 square feet in the fourth quarter This net absorption number, combined with the 15,685 square feet that was built in the quarter, caused the vacancy rate to go from 5.6% a quarter ago to 5.5% at the end of the fourth quarter Rental rates went from $24.32 per square foot to $23.29 per square foot during that time. In this report the Mall market is comprised of 18 Lifestyle Center, Regional Mall and Super Regional Malls. Sales Activity Tallying retail building sales of 15,000 square feet or larger, Kansas City retail sales figures fell during the third quarter 2011 in terms of dollar volume compared to the second quarter of In the third quarter, two retail transactions closed with a total volume of $3,100,000. The two buildings totaled 63,388 square feet and the average price per square foot equated to $48.91 per square foot. That compares to 11 transactions totaling $44,330,191 in the second quarter The total square footage in the second quarter was 448,009 square feet for an average price per square foot of $ OVERVIEW Absorption & Deliveries Past 10 Quarters (0.1) (0.2) (0.3) (0.4) Source: CoStar Property (0.30) YEAR-END 2011 KANSAS CITY q Net Absorption q Total retail center sales activity in 2011 was up compared to In the first nine months of 2011, the market saw 16 retail sales transactions with a total volume of $54,425,191. The price per square foot averaged $ In the same first nine months of 2010, the market posted 14 transactions with a total volume of $42,779,322. The price per square foot averaged $ Cap rates have been higher in 2011, averaging 9.19% compared to the same period in 2010 when they averaged 8.13%. One of the largest transactions that has occurred within the last four quarters in the Kansas City market is the sale of the Price Chopper in Lenexa. This 76,784 square foot retail center sold for $12,500,000, or $ per square foot. The property sold on 12/23/2010, at a 8.35% cap rate q 2011 Deliveries q Reports compiled by: John Kneisly CoStar Research Manager q 2012 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 3

9 KANSAS CITY YEAR-END 2011 MARKETS CoStar Markets & Submarkets In analyzing metropolitan areas in the U.S., CoStar has developed geographic designations to help group properties together, called Regions, Markets and Submarkets. Regions are the equivalent of metropolitan areas, or areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Regions are then divided into Markets, which are core areas within a metropolitan area that are known to be competitive with each other in terms of attracting and keeping tenants. Markets are then further subdivided into smaller units called Submarkets, which serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted competitive set, or peer group. Markets Downtown East Jackson County Kansas City KS Midtown North Johnson County North of the River South Johnson County South KC Southeast Jackson County Submarkets CBD Crown Center Freight House District West Bottoms East Jackson County Kansas City MO Downtown Kansas KC KS Kansas City KS Brookside Country Club Plaza Midtown Northeast Johnson County Northwest Johnson County I-29 Corridor I-35 Corridor College Blvd South Johnson County South Kansas City MO Ward Parkway Southeast Jackson County 4 THE COSTAR RETAIL REPORT 2012 COSTAR GROUP, INC.

10 INVENTORY & DEVELOPMENT YEAR-END 2011 KANSAS CITY Construction Highlights in Select CoStar Markets Color Coded by Under Construction Square Footage as a Percentage of 2012 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 5

11 KANSAS CITY YEAR-END 2011 INVENTORY & DEVELOPMENT Historical Deliveries Deliveries Average Delivered SF Millions of SF * Future deliveries based on current under construction buildings. Construction Activity Markets Ranked by Under Construction Square Footage Under Construction Inventory Average Bldg Size Market # Bldgs Total GLA Preleased SF Preleased % All Existing U/C North Johnson County 2 45,000 40, % 19,443 22,500 South Johnson County 2 15, % 20,665 7,520 East Jackson County 1 14,587 8, % 12,344 14,587 North of the River 1 4,921 4, % 18,947 4,921 Southeast Jackson County % 15,921 0 Kansas City KS % 12,165 0 Downtown % 19,991 0 South KC % 17,911 0 Midtown % 10,146 0 Totals 6 79,548 53, % 15,926 13,258 Recent Deliveries Leased & Un-Leased SF in Deliveries Since 2007 Future Deliveries Preleased & Un-Leased SF in Properties Scheduled to Deliver 3.0 Leased Un-Leased 45 Preleased Un-Leased Millions of SF Thousands of SF T q 6 THE COSTAR RETAIL REPORT 2012 COSTAR GROUP, INC.

12 INVENTORY & DEVELOPMENT YEAR-END 2011 KANSAS CITY Historical Construction Starts & Deliveries Square Footage Per Quarter Starting and Completing Construction Construction Starts Deliveries Millions of SF q q q q q q q q Recent Deliveries by Project Size of Year-to-Date Development Building Size # Bldgs GLA SF Leased % Leased Avg Rate Single-Tenant Multi-Tenant < 50,000 SF , , % $ ,978 56,045 50,000 SF - 99,999 SF 2 156, , % $ , ,000 SF - 249,999 SF % $ ,000 SF - 499,999 SF % $ >= 500,000 SF % $ Recent Development by Tenancy Based on GLA Developed for Single & Multi Tenant Use 2011 Deliveries Currently Under Construction Comparison Based on Total GLA General Retail 33% Shopping Center 38% 62% Mall 67% Power Center Specialty Center Multi Single Multi Single Millions of Square 0Feet COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 7

13 KANSAS CITY YEAR-END 2011 INVENTORY & DEVELOPMENT 8 THE COSTAR RETAIL REPORT 2012 COSTAR GROUP, INC.

14 INVENTORY & DEVELOPMENT YEAR-END 2011 KANSAS CITY 2012 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 9

15 KANSAS CITY YEAR-END 2011 FIGURES AT A GLANCE General Retail Market Statistics Year-End 2011 YTD Net YTD Under Quoted Market # Blds Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Downtown 363 6,962, , , % 18, $12.85 East Jackson County 1,189 7,426, , , % 3, $8.10 Kansas City KS 715 5,799, , , % (32,517) 22,000 0 $11.72 Midtown 541 4,494, , , % 3, $12.77 North Johnson County 525 5,556, , , % 38, ,000 $11.75 North of the River 486 4,664, , , % 213, ,009 4,921 $11.16 South Johnson County 385 5,119, , , % 64,156 8,000 15,040 $14.63 South KC 269 2,092, , , % 68,128 5,770 0 $10.83 Southeast Jackson County 211 1,709, , , % (44,151) 1,760 0 $15.33 Totals 4,684 43,824,324 3,083,217 3,103, % 333, ,851 64,961 $11.10 Mall Market Statistics Year-End 2011 YTD Net YTD Under Quoted Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Downtown 1 412, % $0.00 East Jackson County 3 2,028,121 49,471 49, % 24,360 40,161 14,587 $30.00 Kansas City KS 2 2,070, , , % 23, $23.86 Midtown 1 863,598 7,284 7, % 6, $40.00 North Johnson County 2 2,278,079 30,736 30, % 24, $12.50 North of the River 3 2,369,990 17, , % 8,190 6,940 0 $13.00 South Johnson County 4 2,595,146 81,680 81, % 1, $27.00 South KC % $0.00 Southeast Jackson County 2 1,192,242 46,863 46, % 31, $28.92 Totals 18 13,809, , , % 119,892 47,101 14,587 $23.29 Power Center Market Statistics Year-End 2011 YTD Net YTD Under Quoted Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Downtown % $0.00 East Jackson County 6 2,227, , , % 49,689 6,195 0 $16.37 Kansas City KS % $0.00 Midtown 1 291, % $0.00 North Johnson County 3 1,200,436 60,168 60, % 2, $16.15 North of the River 4 1,950, , , % 2, $19.92 South Johnson County 3 1,230, , , % (38,815) 0 0 $15.88 South KC 3 1,476, , , % 9, $18.43 Southeast Jackson County % $0.00 Totals 20 8,376, , , % 25,549 6,195 0 $17.46 Shopping Center Market Statistics Year-End 2011 YTD Net YTD Under Quoted Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Downtown 4 382,640 44,203 44, % (16,670) 0 0 $0.00 East Jackson County 151 7,266,329 1,065,166 1,075, % 25, $9.54 Kansas City KS 44 2,116, , , % 55, $7.99 Midtown , , , % 6, $13.56 North Johnson County 126 7,957,616 1,047,618 1,199, % 27, $12.65 North of the River 119 7,107, , , % (3,171) 45,000 0 $12.67 South Johnson County 124 8,490,150 1,073,046 1,074, % 61,500 6,500 0 $15.06 South KC 51 2,922, , , % 34, $10.53 Southeast Jackson County 38 2,051, , , % 19, $11.12 Totals ,743,428 5,174,266 5,495, % 210,664 51,500 0 $ THE COSTAR RETAIL REPORT 2012 COSTAR GROUP, INC.

16 FIGURES AT A GLANCE YEAR-END 2011 KANSAS CITY Specialty Center Market Statistics Year-End 2011 YTD Net YTD Under Quoted Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Downtown % $0.00 East Jackson County % $0.00 Kansas City KS % $0.00 Midtown % $0.00 North Johnson County % $0.00 North of the River 1 50, % $0.00 South Johnson County 1 233,542 6,750 16, % (1,045) 0 0 $8.00 South KC 1 602, , , % $7.85 Southeast Jackson County 1 62,478 17,000 17, % $20.00 Totals 4 948, , , % (1,045) 0 0 $7.95 Total Retail Market Statistics Year-End 2011 YTD Net YTD Under Quoted Market # Blds Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Downtown 388 7,756, , , % 1, $12.85 East Jackson County 1,535 18,948,260 2,061,155 2,083, % 102,998 46,668 14,587 $9.70 Kansas City KS 821 9,987, , , % 46,169 22,000 0 $10.50 Midtown 601 6,097, , , % 16, $14.48 North Johnson County ,992,747 1,415,149 1,574, % 93, ,000 $12.68 North of the River ,142,680 1,313,998 1,484, % 221, ,949 4,921 $12.71 South Johnson County ,668,777 1,473,061 1,484, % 87,251 14,500 15,040 $15.02 South KC 396 7,092, ,083 1,110, % 112,342 5,770 0 $11.62 Southeast Jackson County 315 5,015, , , % 6,952 1,760 0 $13.87 Totals 6, ,702,270 9,587,700 10,089, % 688, ,647 79,548 $ COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 11

17 KANSAS CITY YEAR-END 2011 FIGURES AT A GLANCE General Retail Submarket Statistics Year-End 2011 YTD Net YTD Under Quoted Market # Blds Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Brookside ,467 25,522 25, % (12,469) 0 0 $15.29 CBD 135 4,647, , , % 13, $20.49 College Blvd ,299 57,018 57, % 16, $26.59 Country Club Plaza ,296 48,491 48, % (9,355) 0 0 $11.93 Crown Center ,485 18,400 18, % 2, $6.99 Downtown Kansas KC KS ,231 86,251 86, % (24,003) 0 0 $5.99 East Jackson County 727 4,863, , , % (29,038) 0 0 $8.45 Freight House District ,293 73,199 73, % 2, $10.24 I-29 Corridor 105 1,157, , , % 80,723 70,357 4,921 $12.47 I-35 Corridor 381 3,507, , , % 133, ,652 0 $10.44 Kansas City KS 573 4,962, , , % (8,514) 22,000 0 $14.37 Kansas City MO 462 2,562, , , % 32, $6.92 Midtown 391 3,419, , , % 25, $11.98 Northeast Johnson County 288 2,628, , , % 20, $12.12 Northwest Johnson County 237 2,928, , , % 18, ,000 $11.43 South Johnson County 328 4,130, , , % 47,554 8,000 15,040 $12.94 South Kansas City MO 177 1,316, , , % 44, $10.68 Southeast Jackson County 211 1,709, , , % (44,151) 1,760 0 $15.33 Ward Parkway ,684 90,934 90, % 23,152 5,770 0 $11.09 West Bottoms ,172 6,535 6, % (435) 0 0 $11.15 Totals 4,684 43,824,324 3,083,217 3,103, % 333, ,851 64,961 $11.10 Mall Submarket Statistics Year-End 2011 YTD Net YTD Under Quoted Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Brookside % $0.00 CBD 1 412, % $0.00 College Blvd 2 1,439,100 46,417 46, % (461) 0 0 $0.00 Country Club Plaza 1 863,598 7,284 7, % 6, $40.00 Crown Center % $0.00 Downtown Kansas KC KS % $0.00 East Jackson County 3 2,028,121 49,471 49, % 24,360 40,161 14,587 $30.00 Freight House District % $0.00 I-29 Corridor 1 758,598 15,489 15, % 10,490 6,940 0 $13.00 I-35 Corridor 2 1,611,392 2, , % (2,300) 0 0 $0.00 Kansas City KS 2 2,070, , , % 23, $23.86 Kansas City MO % $0.00 Midtown % $0.00 Northeast Johnson County 1 734,400 30,000 30, % $12.50 Northwest Johnson County 1 1,543, % 24, $0.00 South Johnson County 2 1,156,046 35,263 35, % 1, $27.00 South Kansas City MO % $0.00 Southeast Jackson County 2 1,192,242 46,863 46, % 31, $28.92 Ward Parkway % $0.00 West Bottoms % $0.00 Totals 18 13,809, , , % 119,892 47,101 14,587 $ THE COSTAR RETAIL REPORT 2012 COSTAR GROUP, INC.

18 FIGURES AT A GLANCE YEAR-END 2011 KANSAS CITY Power Center Submarket Statistics Year-End 2011 YTD Net YTD Under Quoted Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Brookside % $0.00 CBD % $0.00 College Blvd 1 243,702 30,490 30, % (15,862) 0 0 $15.34 Country Club Plaza % $0.00 Crown Center % $0.00 Downtown Kansas KC KS % $0.00 East Jackson County 6 2,227, , , % 49,689 6,195 0 $16.37 Freight House District % $0.00 I-29 Corridor 3 1,455,931 71,116 71, % 9, $20.11 I-35 Corridor 1 494,645 72,568 72, % (6,471) 0 0 $19.00 Kansas City KS % $0.00 Kansas City MO % $0.00 Midtown 1 291, % $0.00 Northeast Johnson County 1 466,545 5,530 5, % (1,415) 0 0 $0.00 Northwest Johnson County 2 733,891 54,638 54, % 3, $16.15 South Johnson County 2 986,354 69,548 69, % (22,953) 0 0 $16.00 South Kansas City MO 2 728,218 22,722 22, % 9, $16.04 Southeast Jackson County % $0.00 Ward Parkway 1 747, , , % $19.03 West Bottoms % $0.00 Totals 20 8,376, , , % 25,549 6,195 0 $17.46 Shopping Center Submarket Statistics Year-End 2011 YTD Net YTD Under Quoted Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Brookside 1 9, % $0.00 CBD 2 114,038 14,203 14, % 4, $0.00 College Blvd 23 1,795, , , % (11,466) 0 0 $13.55 Country Club Plaza 3 43,139 1,025 1, % (1,025) 0 0 $0.00 Crown Center 1 260,000 30,000 30, % (21,051) 0 0 $0.00 Downtown Kansas KC KS 2 16, % $0.00 East Jackson County 137 6,377, , , % 7, $9.68 Freight House District % $0.00 I-29 Corridor 31 1,621, , , % (3,036) 0 0 $14.59 I-35 Corridor 88 5,486, , , % (135) 45,000 0 $11.48 Kansas City KS 42 2,100, , , % 55, $7.99 Kansas City MO , , , % 18, $8.55 Midtown ,800 99,849 99, % 7, $13.56 Northeast Johnson County 63 4,178, , , % (12,773) 0 0 $14.06 Northwest Johnson County 63 3,778, , , % 40, $11.54 South Johnson County 101 6,694, , , % 72,966 6,500 0 $15.35 South Kansas City MO 35 2,488, , , % 30, $10.11 Southeast Jackson County 38 2,051, , , % 19, $11.12 Ward Parkway ,908 21,402 21, % 3, $15.31 West Bottoms 1 8, % $0.00 Totals ,743,428 5,174,266 5,495, % 210,664 51,500 0 $ COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 13

19 KANSAS CITY YEAR-END 2011 FIGURES AT A GLANCE Specialty Center Submarket Statistics Year-End 2011 YTD Net YTD Under Quoted Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Brookside % $0.00 CBD % $0.00 College Blvd % $0.00 Country Club Plaza % $0.00 Crown Center % $0.00 Downtown Kansas KC KS % $0.00 East Jackson County % $0.00 Freight House District % $0.00 I-29 Corridor 1 50, % $0.00 I-35 Corridor % $0.00 Kansas City KS % $0.00 Kansas City MO % $0.00 Midtown % $0.00 Northeast Johnson County % $0.00 Northwest Johnson County % $0.00 South Johnson County 1 233,542 6,750 16, % (1,045) 0 0 $8.00 South Kansas City MO 1 602, , , % $7.85 Southeast Jackson County 1 62,478 17,000 17, % $20.00 Ward Parkway % $0.00 West Bottoms % $0.00 Totals 4 948, , , % (1,045) 0 0 $7.95 Total Retail Submarket Statistics Year-End 2011 YTD Net YTD Under Quoted Market # Blds Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Brookside ,147 25,522 25, % (12,469) 0 0 $15.29 CBD 158 5,173, , , % 17, $20.49 College Blvd 174 4,467, , , % (11,187) 0 0 $15.33 Country Club Plaza 160 1,791,033 56,800 56, % (3,848) 0 0 $17.41 Crown Center 34 1,161,485 48,400 48, % (18,076) 0 0 $6.99 Downtown Kansas KC KS ,414 86,251 86, % (24,003) 0 0 $5.99 East Jackson County 1,050 15,497,337 1,716,979 1,739, % 52,091 46,356 14,587 $10.03 Freight House District ,293 73,199 73, % 2, $10.24 I-29 Corridor 254 5,043, , , % 97,183 77,297 4,921 $14.70 I-35 Corridor ,099, ,589 1,041, % 124, ,652 0 $11.29 Kansas City KS 677 9,133, , , % 70,172 22,000 0 $10.81 Kansas City MO 485 3,450, , , % 50, $7.72 Midtown 415 4,106, , , % 33, $12.76 Northeast Johnson County 467 8,008, , , % 6, $13.72 Northwest Johnson County 407 8,984, , , % 86, ,000 $11.87 South Johnson County ,201,216 1,191,482 1,202, % 98,438 14,500 15,040 $14.96 South Kansas City MO 279 5,135, , , % 85, $10.05 Southeast Jackson County 315 5,015, , , % 6,952 1,760 0 $13.87 Ward Parkway 117 1,957, , , % 26,974 5,770 0 $16.69 West Bottoms ,774 6,535 6, % (435) 0 0 $11.15 Totals 6, ,702,270 9,587,700 10,089, % 688, ,647 79,548 $ THE COSTAR RETAIL REPORT 2012 COSTAR GROUP, INC.

20 FIGURES AT A GLANCE YEAR-END 2011 KANSAS CITY General Retail Market Statistics Year-End 2011 Net Deliveries UC Inventory Period # Blds Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates q 4,684 43,824,324 3,083,217 3,103, % (63,783) 2 10, ,961 $ ,682 43,813,908 3,007,159 3,029, % 156, , ,377 $ q 4,680 43,741,791 3,087,554 3,113, % 153, ,494 $ ,680 43,747,479 3,247,639 3,271, % 88, , ,350 $ q 4,675 43,617,473 3,201,714 3,230, % 20, , ,675 $ ,674 43,550,595 3,154,037 3,183, % 45, ,977 $ q 4,674 43,550,595 3,199,876 3,229, % 90, , ,707 $ ,672 43,543,123 3,283,385 3,313, % (144,069) 3 8, ,152 $ q 4,669 43,535,117 3,110,410 3,161, % (71,274) 1 12, ,478 $ ,669 43,564,217 3,063,131 3,119, % (41,149) 5 56, ,906 $ q 4,664 43,507,557 2,940,522 3,021, % 223, , ,560 $ ,660 43,427,801 3,038,859 3,164, % (45,216) 9 81, ,416 $ q 4,652 43,353,076 2,963,918 3,044, % 71, , ,775 $ ,646 43,399,593 3,074,529 3,162, % (86,289) 4 17, ,544 $ q 4,644 43,566,080 3,159,227 3,243, % 109, , ,567 $ ,637 43,261,082 2,966,170 3,047, % 224, , ,771 $11.58 Quoted Mall Market Statistics Year-End 2011 Net Deliveries Period # Ctrs Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates q 18 13,809, , , % 22, , ,587 $ ,794, , , % 21, , ,272 $ q 18 13,780, , , % 47, , ,248 $ ,773, , , % 29, , ,188 $ q 18 13,762, , , % 68, ,688 $ ,762, , , % 157, , ,748 $ q 18 13,638, , , % (24,074) ,113 $ ,638, , , % 38, , ,113 $ q 18 13,589, , , % 114, , ,268 $ ,509, , , % 266, , ,362 $ q 18 13,122, , , % 1, ,600 $ ,122, , , % (11,310) 1 7, ,600 $ q 18 13,114, , , % (53,807) 3 131, ,210 $ ,983, , , % 532, , ,235 $ q 17 12,442, , , % 29, , ,127,142 $ ,389, , , % ,152,028 $20.47 UC Inventory Quoted Power Center Market Statistics Year-End 2011 Net Deliveries UC Inventory Period # Ctrs Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates q 20 8,376, , , % (5,443) $ ,376, , , % 65, $ q 20 8,376, , , % (40,528) 1 6, $ ,370, , , % 5, ,195 $ q 20 8,370, , , % 14, ,195 $ ,370, , , % 51, $ q 20 8,370, , , % 49, $ ,370, , , % (11,146) $ q 20 8,370, , , % (9,066) $ ,370, , , % (43,252) 1 7, $ q 20 8,363, , , % (97,530) ,142 $ ,363, , , % (26,773) ,142 $ q 20 8,363, , , % 41, , $ ,230, , , % 7, , ,528 $ q 20 8,134, , , % 511, , ,833 $ ,611, , , % 33, , ,612 $18.67 Quoted 2012 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 15

21 KANSAS CITY YEAR-END 2011 FIGURES AT A GLANCE Shopping Center Market Statistics Year-End 2011 Net Deliveries UC Inventory Period # Ctrs Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates q ,743,428 5,174,266 5,495, % 53, , $ ,736,928 5,222,427 5,542, % 171, , ,500 $ q ,691,928 5,375,613 5,668, % (4,527) ,500 $ ,691,928 5,418,858 5,664, % (9,565) ,000 $ q ,691,928 5,420,701 5,654, % 11, , $ ,687,679 5,428,362 5,662, % (113,622) 1 6, ,249 $ q ,681,555 5,304,168 5,542, % 115, , ,373 $ ,667,505 5,398,334 5,644, % 186, , ,174 $ q ,543,483 5,476,965 5,706, % (328,202) 1 14, ,072 $ ,528,663 5,117,317 5,363, % 233, , ,930 $ q ,440,376 5,219,368 5,509, % (22,533) 6 130, ,217 $ ,310,359 5,119,491 5,356, % (48,716) 3 66, ,124 $ q ,243,499 5,013,343 5,241, % (59,612) 9 204, ,464 $ ,038,966 4,776,565 4,976, % 266, , ,946 $ q ,829,927 4,843,319 5,034, % (156,981) 4 65, ,307 $ ,764,777 4,577,166 4,812, % (278,712) 12 95, ,852 $13.30 Quoted Specialty Center Market Statistics Year-End 2011 Net Deliveries Period # Ctrs Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates q 4 948, , , % $ , , , % $ q 4 948, , , % (6,750) $ , , , % 5, $ q 4 948, , , % $ , , , % $ q 4 948, , , % 8, $ , , , % $ q 4 948, , , % (6,378) $ , , , % (10,000) $ q 4 948, , , % $ , , , % $ q 4 948, , , % $ , , , % 51, $ q 4 948, , , % 2, $ , , , % 15, , $6.84 UC Inventory Quoted Total Retail Market Statistics Year-End 2011 Net Deliveries UC Inventory Period # Blds Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates q 6, ,702,270 9,587,700 10,089, % 6, , ,548 $ , ,669,669 9,561,343 10,063, % 414, , ,149 $ q 6, ,538,576 9,867,591 10,346, % 148, , ,242 $ , ,531,129 10,029,030 10,487, % 119, , ,733 $ q 6, ,390,623 10,015,232 10,466, % 115, , ,558 $ , ,319,496 10,208,462 10,510, % 142, , ,974 $ q 6, ,189,507 10,216,145 10,523, % 240, , ,193 $ , ,167,985 10,427,939 10,742, % 70, , ,439 $ q 6, ,986,802 10,312,590 10,631, % (300,411) 3 107, ,818 $ , ,921,082 9,915,560 10,265, % 405, , ,198 $ q 6, ,381,755 9,723,589 10,131, % 104, , ,519 $ , ,171,982 9,530,610 10,026, % (132,015) , ,282 $ q 6, ,022,412 9,291,786 9,745, % (461) , ,449 $ , ,600,843 8,957,356 9,322, % 772, , ,254,253 $ q 6, ,921,079 9,091,538 9,415, % 495, , ,940,849 $ , ,975,196 8,599,565 8,965, % (4,690) , ,637,263 $13.07 Quoted 16 THE COSTAR RETAIL REPORT 2012 COSTAR GROUP, INC.

22 LEASING ACTIVITY YEAR-END 2011 KANSAS CITY Leasing Highlights in Select CoStar Markets Color Coded by Rate 2012 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 17

23 KANSAS CITY YEAR-END 2011 LEASING ACTIVITY Historical Rental Rates Based on NNN Rental Rates Power Center Specialty Center General Retail Shopping Center Mall Total Market $26.00 Dollars/SF/Year $21.00 $16.00 $11.00 $ q q q q q q q q q q q q by Available Space Type Percent of All Vacant Space in Direct vs. Sublet by Building Type Percent of All Vacant Space by Building Type 5% Shopping Center General Retail Mall Power Center 95% Specialty Center Direct Sublet 0% 10% 20% 30% 40% 50% 60% GLA By Building Type Ratio of Total GLA by Building Type Future Space Available Space Scheduled to be Available for Occupancy* General Retail Shopping Center Mall Power Center Millions Specialty Center Millions of Square 0Feet q q q * Includes Under Construction Spaces 18 THE COSTAR RETAIL REPORT 2012 COSTAR GROUP, INC.

24 LEASING ACTIVITY YEAR-END 2011 KANSAS CITY Select Top Retail Leases Based on Leased Square Footage For Deals Signed in 2011 Building Submarket SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company W College St I-35 Corridor 45,000 2nd Dicks Sporting Goods N/A CBRE Quivira Rd Northwest Johnson County 34,925 1st Nordstrom Rack Northwest Retail Partners RED Brokerage LLC 3 The Pavillions At Hartman Heritage Center East Jackson County 33,166 1st Bed Bath & Beyond Legend Retail Group LaSala-Sonnenberg Commercial Realty 4 Crown Center Shops Crown Center 33,000 2nd Legoland Discovery Center Colliers International Kessinger/Hunter & Company, L.C Metcalf Ave South Johnson County 30,010 2nd Buy Buy Baby N/A LANE4 Property Group 6 Crown Center Shops Crown Center 30,000 1st Merlin Entertainments Group Colliers International Kessinger/Hunter & Company, L.C NW Woods Chapel Rd East Jackson County 28,668 1st Just for Cakes N/A Colliers International E Valley View Pky East Jackson County 28,500 3rd Strikerz Entertainment Direct Deal LaSala-Sonnenberg Commercial Realty 9 The Pavillions At Hartman Heritage Center East Jackson County 28,470 1st Buy Buy Baby Legend Retail Group LaSala-Sonnenberg Commercial Realty 10 Marketplace Shopping Center East Jackson County 25,070 2nd PETCO N/A Phillips Edison & Company S Parker St South Johnson County 22,726 1st N/A N/A Direct Deal 12 75th & Metcalf Northeast Johnson County 22,501 2nd N/A N/A The R.H. Johnson Company El Monte St College Blvd 22,500 1st Rusty s LLC Direct Deal Kessinger/Hunter & Company, L.C. 14 Valencia Retail Country Club Plaza 22,000 3rd H&M N/A Highwoods Properties, Inc 15 John s Apple Market South Kansas City MO 20,300 2nd N/A N/A The R.H. Johnson Company 16 Center 63 South East Jackson County 16,258 2nd Save-A-Lot N/A Kessinger/Hunter & Company, L.C E 39th St East Jackson County 15,770 4th N/A N/A Velocity Retail Group S Noland Rd East Jackson County 15,637 1st Social Security Administration CB Richard Ellis Realty Executives of Kansas City E Highway 40 East Jackson County 15,155 2nd FYE N/A National Retail Properties, Inc. 20 One Nineteen - Building 4 South Johnson County 15,000 1st Trader Joes N/A N/A 21 The Shops on Blue Parkway Kansas City MO 14,753 4th State of Missouri N/A Greg Patterson & Associates, Inc N Oak Tfwy* I-35 Corridor 14,500 4th DAV Thrift Direct Deal LS Commercial Real Estate E 39th St East Jackson County 13,800 2nd Kansas Sampler N/A Velocity Retail Group Blue Ridge Blvd South Kansas City MO 13,056 4th Charity Thrift Mart Block & Company, Inc. Block & Company, Inc S Parker St South Johnson County 12,642 1st Antique Mall N/A Direct Deal 26 Trailridge Shopping Center Northwest Johnson County 12,515 3rd New City Church Direct Deal Varnum-Armstrong-Deeter, L.L.C Metcalf Ave* South Johnson County 12,500 3rd Old Navy N/A Block Real Estate Services, LLC Minnesota Ave Downtown Kansas KC KS 12,200 2nd Thrift Store Direct Deal RED Brokerage LLC 29 Dulux Paint Center South Kansas City MO 12,000 1st Aaron s Rentals LaSala-Sonnenberg Commercial Realty Dembs-Roth Group 30 Dynamic Auto Services East Bottoms KC Ind 11,850 3rd N/A N/A Mika & Sons Inc 31 Home Furnishing Center Northwest Johnson County 10,886 3rd KC Shooting Sports GS Bates Realty Goehausen & Company Metcalf Ave Northeast Johnson County 10,680 4th Ida s Bridal LaSala-Sonnenberg Commercial Realty Block & Company, Inc. 33 Landing Mall Kansas City MO 10,448 1st Smart Pawn Direct Deal Block & Company, Inc. 34 Adams Dairy Landing - Building F-G East Jackson County 10,400 1st Ulta N/A RED Brokerage LLC NW Englewood Rd I-35 Corridor 10,000 3rd N/A N/A Colliers International 36 Holiday Hills Shopping Center I-35 Corridor 10,000 4th Bing Boing Bounce Direct Deal Block Real Estate Services, LLC 37 Olathe Station Shopping Center - Building BB South Johnson County 9,965 1st Leaping Lizards Realty Executives of Kansas City Kessinger/Hunter & Company, L.C Troost Ave Midtown 9,500 2nd Connections to Success, Inc. Direct Deal Greg Patterson & Associates, Inc. 39 Valencia Retail* Country Club Plaza 9,413 1st Financial Councelors INC N/A Kessinger/Hunter & Company, L.C NE 91st St* I-35 Corridor 9,398 1st Complete Home Concepts N/A Kessinger/Hunter & Company, L.C. * Renewal 2012 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 19

25 KANSAS CITY YEAR-END 2011 SALES ACTIVITY The Optimist Sales Index Average of Two Highest Price/SF's and Two Lowest Cap Rates 12.0% Cap Rate Price/SF $ % $350 Cap Rate Percentage 8.0% 6.0% 4.0% $300 $250 $200 $150 $100 Dollars/SF 2.0% $50 0.0% q q q q q q 2011 $0 Source: CoStar COMPS Sales Volume & Price Sales Analysis by Building Size Based on Retail Building Sales of 15,000 SF and Larger Based on Retail Building Sales From Oct Sept Sales Volume Price/SF Bldg Size # RBA $ Volume Price/SF Cap Rate $60 $200 Millions of Sales Volume Dollars $50 $40 $30 $20 $10 $180 $160 $140 $120 $100 $80 $60 $40 $20 Price/SF < 25,000 SF ,499 $ 52,767,930 $ % 25K-99K SF ,922 $ 65,503,000 $ % 100K-249K SF 3 533,096 $ 27,310,000 $ % $ $0 >250K SF $ - - Source: CoStar COMPS Source: CoStar COMPS U.S. Price/SF Comparison Based on Retail Building Sales of 15,000 SF and Larger U.S. Cap Rate Comparison Based on Retail Building Sales of 15,000 SF and Larger $210 Kansas City US 11.0% Kansas City US $ % Dollars per SF $170 $150 $130 $110 $90 $70 Cap Rate Percentage 9.0% 8.0% 7.0% 6.0% 5.0% $50 4.0% $ % Source: CoStar COMPS Source: CoStar COMPS 20 THE COSTAR RETAIL REPORT 2012 COSTAR GROUP, INC.

26 SALES ACTIVITY YEAR-END 2011 KANSAS CITY 2012 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 21

27 KANSAS CITY YEAR-END 2011 SALES ACTIVITY Select Land Sales Based on Commercially Zoned Land Sales Occurring From Oct Dec Sterling Ave, Kansas City 8285 W 179th St, Overland Park 950 SE Broadway, Lees Summit Sale Price: $7,650,000 Sale Price: $1,510,000 Sale Price: $1,361,399 Acres: Acres: Acres: 6.50 Price/SF: $13.21 Price/SF: $0.48 Price/SF: $4.81 Closing Date: 08/18/2011 Closing Date: 09/30/2011 Closing Date: 12/15/2010 Zoning: Unknown Zoning: Unknown Zoning: CP-2 Intended Use: Garden Center Intended Use: Commercial Intended Use: Commercial Buyer: Yates Family Partnership Buyer: The Midwest Trust Company Buyer: Bill Roberts Chevrolet Pontiac Buick Seller: MBS Mall Investor-98, LLC Seller: Girl Scouts of NE Kansas and NW Missour Seller: Gary Pipes E Bannister Rd, Kansas City 9089 W 135th St, Overland Park Sale Price: $900,000 Sale Price: $747,193 Acres: Acres: 0.93 Price/SF: $0.45 Price/SF: $18.50 Closing Date: 10/19/2011 Closing Date: 03/30/2011 Zoning: URD Zoning: CP-2 Intended Use: Hold for Investment Intended Use: Retail Buyer: Sarai LLC Buyer: Coach's Bar & Grill Seller: Commerce Bankshares, Inc. Seller: Coldwell Banker Commercial Fishman & Co. Source: CoStar COMPS 22 THE COSTAR RETAIL REPORT 2012 COSTAR GROUP, INC.