The CoStar Retail Report

Transcription

1 The CoStar Retail Report F I R S T Q U A R T E R

2 FIRST QUARTER 2011 BROWARD COUNTY Table of Contents Table of Contents A Methodology B Terms & Definitions C Market Highlights & Overview CoStar Markets Inventory & Development Analysis Construction Activity Map Inventory & Development Analysis Select Top Under Construction Properties Select Top Deliveries Figures at a Glance Figures at a Glance by Building Type & Market 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 Commercial Blvd Market Cypress Creek Market Downtown Fort Lauderdale Market Fort Lauderdale Market Hallandale Market Hollywood Market NW Broward/Coral Springs Market Outlying Broward County Market Plantation Market Pompano Beach Market Sawgrass Park Market Southwest Broward Market 2011 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT A

3 BROWARD COUNTY FIRST QUARTER 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 71.7 billion square feet of coverage in 3 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 2010 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 L ST NW Washington, DC USA (800) NASDAQ: CSGP B THE COSTAR RETAIL REPORT 2011 COSTAR GROUP, INC.

4 FIRST QUARTER 2011 BROWARD COUNTY 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., 2011 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT C

5 BROWARD COUNTY FIRST QUARTER 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). Rental Rate: The asking rate per square foot for a particular building or unit of space by a broker or property owner. 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 2011 COSTAR GROUP, INC.

6 OVERVIEW FIRST QUARTER 2011 BROWARD COUNTY Broward County s Decreases to 8.1% Net Absorption Positive 74,959 SF in the Quarter The Broward County retail market did not experience much change in market conditions in the first quarter The vacancy rate went from 8.2% in the previous quarter to 8.1% in the current quarter. Net absorption was positive 74,959 square feet, and vacant sublease space decreased by (10,936) square feet. rental rates decreased from fourth quarter 2010 levels, ending at $17.57 per square foot per year. A total of five retail buildings with 36,449 square feet of retail space were delivered to the market in the quarter, with 50,910 square feet still under construction at the end of the quarter. Net Absorption Retail net absorption was slightly positive in Broward County first quarter 2011, with positive 74,959 square feet absorbed in the quarter. In fourth quarter 2010, net absorption was negative (266,249) square feet, while in third quarter 2010, absorption came in at positive 155,737 square feet. In second quarter 2010, positive 49,609 square feet was absorbed in the market. Tenants moving into large blocks of space in 2011 include: Burlington Coat Factory moving into 67,899 square feet at Lauderdale Lakes Mall and Buy Buy Baby moving into 31,006 square feet at Colonial Shoppes Pines Plaza and Broward County s retail vacancy rate decreased in the first quarter 2011, ending the quarter at 8.1%. Over the past four quarters, the market has seen an overall increase in the vacancy rate, with the rate going from 8.0% in the second quarter 2010, to 7.9% at the end of the third quarter 2010, 8.2% at the end of the fourth quarter 2010, to 8.1% in the current quarter. The amount of vacant sublease space in the Broward County market has trended down over the past four quarters. At the end of the second quarter 2010, there were 225,692 square feet of vacant sublease space. Currently, there are 207,816 square feet vacant in the market. Largest Lease Signings The largest lease signings occurring in 2011 included: the 86,156-square-foot-lease signed by Burlington Coat Factory at Pine Island Plaza; the 51,282-square-foot-deal signed by Winn Dixie at Westfork Plaza; and the 10,000-square-foot-lease signed by Kiddie City Early Education Center at Pasadena Plaza. Rental Rates Average quoted asking rental rates in the Broward County retail market are down over previous quarter levels, and down from their levels four quarters ago. rents ended the first quarter 2011 at $17.57 per square foot per year. That compares to $17.61 per square foot in the fourth quarter 2010, and $17.84 per square foot at the end of the second quarter This represents a 0.2% decrease in rental rates in the current quarter, and a 1.54% decrease from four quarters ago. Inventory & Construction During the first quarter 2011, five buildings totaling 36,449 square feet were completed in the Broward County retail market. Over the past four quarters, a total of 102,269 square feet of retail space has been built in Broward County. In addition to the current quarter, three buildings with 28,095 square feet were completed in fourth quarter 2010, three buildings totaling 21,455 Rates by Building Type Power Center Specialty Center General Retail Shopping Center Mall Total Market 21% 19% 17% 15% 13% 11% 9% 7% 5% 3% 1% q q q q q q q q q q COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 1

7 BROWARD COUNTY FIRST QUARTER 2011 OVERVIEW square feet completed in third quarter 2010, and 16,270 square feet in one building completed in second quarter There were 50,910 square feet of retail space under construction at the end of the first quarter Some of the notable 2011 deliveries include: Pet Supermarket, a 10,793-square-foot facility that delivered in first quarter 2011 and is now 100% occupied, and Walgreens N Powerline Rd, a 10,456-square-foot building that delivered in first quarter 2011 and is now 100% occupied. Total retail inventory in the Broward County market area amounted to 108,422,350 square feet in 7,175 buildings and 1114 centers as of the end of the first quarter Shopping Center The Shopping Center market in Broward County currently consists of 1085 projects with 48,363,171 square feet of retail space in 1,839 buildings. In this report the Shopping Center market is comprised of all Community Center, Neighborhood Center, and Strip Centers. After absorbing (84,391) square feet and delivering no new space in the current quarter, the Shopping Center sector saw the vacancy rate go from 10.8% at the end of the fourth quarter 2010 to 11.0% this quarter. Over the past four quarters, the Shopping Center vacancy rate has gone from 10.7% at the end of the second quarter 2010, to 10.5% at the end of the third quarter 2010, to 10.8% at the end of the fourth quarter 2010, and finally to 11.0% at the end of the current quarter. Rental rates ended the first quarter 2011 at $17.34 per square foot, down from the $17.38 they were at the end of fourth quarter Rental rates have trended down over the past year, going from $17.77 per square foot a year ago to their current levels. Net absorption in the Shopping Center sector has totaled 17,385 square feet over the past four quarters. In addition to & Rent Past 7 Quarters Price in Dollars per Unit $20 $19 $19 $18 $18 $17 $ q Average Rental Rate q 2010 Rate q % 8.2% 8.1% 8.0% 7.9% 7.8% 7.7% 7.6% 7.5% Rate Percentage the negative (84,391) square feet absorbed this quarter, negative (137,655) square feet was absorbed in the fourth quarter 2010, positive 115,346 square feet was absorbed in the third quarter 2010, and positive 124,085 square feet was absorbed in the second quarter Power Centers The Power Center average vacancy rate was 6.3% in the first quarter With positive 129,120 square feet of net absorption and 3,960 square feet in new deliveries, the vacancy rate went from 8.8% at the end of last quarter to 6.3% at the end of the first quarter. In the fourth quarter 2010, Power Centers absorbed negative (69,176) square feet, delivered no new space, and the vacancy rate went from 7.4% to 8.8% over the course of the quarter. Rental started the quarter at $19.12 per square foot and ended the quarter at $19.75 per square foot. A year ago, in first quarter 2010, the vacancy rate was 7.7%. Over the past four quarters, Power Centers have absorbed a cumulative 73,656 square feet of space and delivered cumulative 3,960 square feet of space. Vacant sublease space has gone from 3,114 square feet to 3,114 square feet over that time period, and rental rates have gone from $18.95 to $ At the end of the first quarter 2011, there was no space under construction in the Broward County market. The total stock of Power Center space in Broward County currently sits at 5,079,130 square feet in 12 centers comprised of 83 buildings. No space was under construction at the end of the first 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 3.3% at the end of first quarter There was a total of 1,460,795 square feet vacant at that time. The General Retail sector in Broward County currently has average rental rates of $18.62 per square foot per year. There are 50,910 square feet of space under construction in this sector, with 32,489 square feet having been completed in the first quarter. In all, there are a total of 5,186 buildings with 44,157,812 square feet of General Retail space in Broward County. Specialty Centers There are currently three Specialty Centers in the Broward County market, making up 365,040 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 Broward County market have experienced negative (1,400) square feet of net absorption in The vacancy rate currently stands at 19.4%, and rental rates average $12.00 per square foot. Source: CoStar Property 2 THE COSTAR RETAIL REPORT 2011 COSTAR GROUP, INC.

8 OVERVIEW FIRST QUARTER 2011 BROWARD COUNTY Malls Malls recorded net absorption of negative (13,952) square feet in the first quarter This net absorption number, combined with no new space that was built in the quarter, caused the vacancy rate to go from 15.7% a quarter ago to 15.9% at the end of the first quarter Rental rates went from $16.21 per square foot to $16.41 per square foot during that time. In this report the Mall market is comprised of 14 Lifestyle Center, Regional Mall and Super Regional Malls. Sales Activity Tallying retail building sales of 15,000 square feet or larger, Broward County retail sales figures rose during the fourth quarter 2010 in terms of dollar volume compared to the third quarter of In the fourth quarter, nine retail transactions closed with a total volume of $51,507,297. The nine buildings totaled 913,505 square feet and the average price per square foot equated to $56.38 per square foot. That compares to five transactions totaling $29,487,303 in the third quarter The total square footage in the third quarter was 240,823 square feet for an average price per square foot of $ Total retail center sales activity in 2010 was up compared to In the twelve months of 2010, the market saw 25 retail sales transactions with a total volume of $183,971,055. The price per square foot averaged $ In the same twelve months of 2009, the market posted 12 transactions with a total volume of $59,662,000. The price per square foot averaged $ Absorption & Deliveries Past 7 Quarters (0.1) (0.2) (0.3) (0.4) (0.27) 0.27 Source: CoStar Property (0.15) Net Absorption 0.02 Cap rates have been higher in 2010, averaging 7.78% compared to the same period in 2009 when they averaged 7.57%. One of the largest transactions that has occurred within the last four quarters in the Broward County market is the sale of 8655 Pines Blvd in Pembroke Pines. This 154,964 square foot retail center sold for $24,050,000, or $ per square foot. The property sold on 6/18/2010. Reports compiled by: Matt Burdette, CoStar Research Manager Deliveries (0.27) q 2011 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 3

9 BROWARD COUNTY FIRST QUARTER 2011 MARKETS CoStar Markets 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 Commercial Blvd Cypress Creek Downtown Fort Lauderdale Fort Lauderdale Hallandale Hollywood NW Broward/Coral Springs Plantation Pompano Beach Sawgrass Park Southwest Broward Outlying Broward County 4 THE COSTAR RETAIL REPORT 2011 COSTAR GROUP, INC.

10 INVENTORY & DEVELOPMENT FIRST QUARTER 2011 BROWARD COUNTY Construction Highlights in Select CoStar Markets Color Coded by Under Construction Square Footage as a Percentage of 2011 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 5

11 BROWARD COUNTY FIRST QUARTER 2011 INVENTORY & DEVELOPMENT Historical Deliveries Deliveries 4.4 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 Fort Lauderdale 4 46,758 46, % 9,380 11,689 Cypress Creek 1 4,152 4, % 12,543 4,152 Southwest Broward % 29,023 0 Downtown Fort Lauderdale % 13,517 0 Commercial Blvd % 17,410 0 Hallandale % 8,504 0 Hollywood % 11,008 0 NW Broward/Coral Springs % 21,621 0 Outlying Broward County % 22,139 0 Plantation % 23,487 0 All Other % 18,495 0 Totals 5 50,910 50, % 15,111 10,182 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 35 Preleased Un-Leased Millions of SF Thousands of SF T q THE COSTAR RETAIL REPORT 2011 COSTAR GROUP, INC.

12 INVENTORY & DEVELOPMENT FIRST QUARTER 2011 BROWARD COUNTY Historical Construction Starts & Deliveries Square Footage Per Quarter Starting and Completing Construction 1.4 Construction Starts Deliveries Millions of SF 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 5 36,449 36, % $ , ,000 SF - 99,999 SF % $ ,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 No 2011 Deliveries Currently Under Construction Comparison Based on Total GLA Shopping Center 0% General Retail Mall 100% Power Center Specialty Center Multi Single Millions of Square 0Feet COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 7

13 BROWARD COUNTY FIRST QUARTER 2011 INVENTORY & DEVELOPMENT 8 THE COSTAR RETAIL REPORT 2011 COSTAR GROUP, INC.

14 FIGURES AT A GLANCE FIRST QUARTER 2011 BROWARD COUNTY General Retail Market Statistics First Quarter 2011 YTD Net YTD Under Market # Blds Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Commercial Blvd ,757 29,518 29, % $13.00 Cypress Creek 163 1,319,764 35,404 35, % (4,300) 0 4,152 $19.30 Downtown Fort Lauderdale 382 3,312, , , % (28,303) 0 0 $23.36 Fort Lauderdale 1,651 11,626, , , % 8,430 10,793 46,758 $18.36 Hallandale 390 1,837,765 46,400 46, % 15, $18.60 Hollywood 868 5,353, , , % 15, $19.99 NW Broward/Coral Springs 292 3,182, , , % 16, $19.68 Outlying Broward County ,957 4,400 4, % 8,159 6,359 0 $20.00 Plantation 300 3,091, , , % 2, $16.80 Pompano Beach 727 7,444, , , % 18,125 15,337 0 $15.98 Sawgrass Park , % $16.84 Southwest Broward 262 4,915,934 49,014 59, % (6,915) 0 0 $15.94 Totals 5,186 44,157,812 1,419,062 1,460, % 45,582 32,489 50,910 $18.62 Mall Market Statistics First Quarter 2011 YTD Net YTD Under Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Commercial Blvd % $0.00 Cypress Creek % $0.00 Downtown Fort Lauderdale 2 1,301, , , % $0.00 Fort Lauderdale 1 608, , , % $13.52 Hallandale 1 420, , , % $0.00 Hollywood 1 163,179 76,770 76, % (5,639) 0 0 $16.00 NW Broward/Coral Springs 1 1,037,203 12,600 12, % $30.00 Outlying Broward County % $0.00 Plantation 2 2,095, , , % (2,400) 0 0 $0.00 Pompano Beach 2 1,107,653 72,814 72, % (5,913) 0 0 $28.52 Sawgrass Park 1 2,252, % $0.00 Southwest Broward 3 1,471,706 24,826 24, % $23.83 Totals 14 10,457,197 1,659,991 1,659, % (13,952) 0 0 $16.41 Power Center Market Statistics First Quarter 2011 YTD Net YTD Under Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Commercial Blvd 1 248,718 2,800 2, % 67, $25.00 Cypress Creek % $0.00 Downtown Fort Lauderdale % $0.00 Fort Lauderdale 1 427,455 2,205 2, % $22.30 Hallandale 1 339,000 13,500 13, % $0.00 Hollywood 4 2,221,152 60,008 63, % 16,331 3,960 0 $22.77 NW Broward/Coral Springs % $0.00 Outlying Broward County % $0.00 Plantation 1 488,721 32,178 32, % 43, $0.00 Pompano Beach 1 259,340 15,850 15, % (2,100) 0 0 $19.24 Sawgrass Park % $0.00 Southwest Broward 3 1,094, , , % 3, $17.75 Totals 12 5,079, , , % 129,120 3,960 0 $ COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 9

15 BROWARD COUNTY FIRST QUARTER 2011 FIGURES AT A GLANCE Shopping Center Market Statistics First Quarter 2011 YTD Net YTD Under Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Commercial Blvd 17 1,010,184 63,478 63, % 3, $6.22 Cypress Creek 37 1,364, , , % $12.17 Downtown Fort Lauderdale 24 1,076,253 37,819 37, % (2,480) 0 0 $22.66 Fort Lauderdale 217 5,649, , , % (5,976) 0 0 $19.46 Hallandale 89 1,518, , , % 15, $15.39 Hollywood 153 4,326, , , % 14, $17.73 NW Broward/Coral Springs 125 7,283,316 1,028,380 1,061, % 1, $15.54 Outlying Broward County 26 2,159, , , % (6,658) 0 0 $19.27 Plantation 107 7,148,543 1,022,626 1,038, % (93,090) 0 0 $15.42 Pompano Beach 176 8,012, , , % (55,094) 0 0 $18.06 Sawgrass Park 14 1,291,500 84,934 90, % 1, $14.45 Southwest Broward 100 7,522, , , % 41, $21.31 Totals 1,085 48,363,171 5,145,689 5,308, % (84,391) 0 0 $17.34 Specialty Center Market Statistics First Quarter 2011 YTD Net YTD Under Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Commercial Blvd % $0.00 Cypress Creek % $0.00 Downtown Fort Lauderdale % $0.00 Fort Lauderdale 1 167,180 2,855 2, % $0.00 Hallandale 1 60, % $0.00 Hollywood % $0.00 NW Broward/Coral Springs % $0.00 Outlying Broward County % $0.00 Plantation % $0.00 Pompano Beach 1 137,860 67,918 67, % (1,400) 0 0 $12.00 Sawgrass Park % $0.00 Southwest Broward % $0.00 Totals 3 365,040 70,773 70, % (1,400) 0 0 $12.00 Total Retail Market Statistics First Quarter 2011 YTD Net YTD Under Market # Blds Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Commercial Blvd 109 1,897,659 95,796 95, % 71, $7.58 Cypress Creek 214 2,684, , , % (3,609) 0 4,152 $13.59 Downtown Fort Lauderdale 421 5,690, , , % (30,783) 0 0 $23.02 Fort Lauderdale 1,970 18,478,887 1,153,902 1,215, % 2,454 10,793 46,758 $17.79 Hallandale 491 4,175, , , % 30, $16.52 Hollywood 1,096 12,064, , , % 40,781 3,960 0 $18.50 NW Broward/Coral Springs ,502,535 1,142,798 1,182, % 18, $16.07 Outlying Broward County 122 2,700, , , % 1,501 6,359 0 $19.29 Plantation ,823,770 1,824,471 1,840, % (49,145) 0 0 $15.48 Pompano Beach 1,082 16,961,789 1,167,656 1,195, % (46,382) 15,337 0 $18.06 Sawgrass Park 75 4,436,887 84,934 90, % 1, $15.19 Southwest Broward ,004, , , % 38, $20.38 Totals 7, ,422,350 8,612,254 8,820, % 74,959 36,449 50,910 $ THE COSTAR RETAIL REPORT 2011 COSTAR GROUP, INC.

16 FIGURES AT A GLANCE FIRST QUARTER 2011 BROWARD COUNTY General Retail Market Statistics First Quarter 2011 Net Deliveries UC Inventory Period # Blds Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates ,186 44,157,812 1,419,062 1,460, % 45, , ,910 $ q 5,182 44,125,323 1,434,555 1,473, % (14,790) 2 20, ,425 $ ,180 44,104,328 1,398,770 1,438, % 17, , ,420 $ q 5,179 44,103,855 1,413,096 1,454, % (73,157) 1 16, ,086 $ ,178 44,087,585 1,323,819 1,365, % 69, , ,905 $ q 5,176 44,077,248 1,404,605 1,424, % (100,044) 1 4, ,607 $ ,175 44,073,048 1,286,526 1,320, % (78,828) 5 111, ,537 $ q 5,170 43,961,109 1,084,476 1,129, % (40,870) 1 5, ,139 $ ,169 43,956,109 1,027,539 1,083, % 87, , ,939 $ q 5,163 43,854,266 1,013,092 1,069, % 2, , ,474 $ ,159 43,745, , , % 16, , ,063 $ q 5,157 43,737, , , % (64,186) 6 80, ,845 $ ,152 43,661, , , % 404, , ,384 $ q 5,147 43,308, , , % (12,122) 5 84, ,905 $ ,144 43,232, , , % 357, , ,308 $ q 5,141 42,973, , , % 189, , ,672 $23.93 Mall Market Statistics First Quarter 2011 Net Deliveries Period # Ctrs Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates ,457,197 1,659,991 1,659, % (13,952) $ q 14 10,457,197 1,646,039 1,646, % 10, $ ,457,197 1,656,959 1,656, % 4, $ q 14 10,457,197 1,661,304 1,661, % (7,070) $ ,457,197 1,654,234 1,654, % 20, , $ q 14 10,057,197 1,274,685 1,274, % 35, , ,000 $ ,037,197 1,290,168 1,290, % 76, , ,000 $ q 13 9,923,991 1,249,592 1,253, % (178,580) ,206 $ ,923,991 1,071,012 1,074, % (6,839) ,206 $ q 13 9,923,991 1,067,788 1,067, % 94, , ,146 $ ,603, , , % (9,880) ,125 $ q 12 9,603, , , % (534,997) ,125 $ ,603, , , % (148,922) 1 7, ,125 $ q 11 9,596, , , % 1, ,611 $ ,596, , , % (19,452) ,838 $ q 11 9,596, , , % ,352 $17.55 UC Inventory Power Center Market Statistics First Quarter 2011 Net Deliveries UC Inventory Period # Ctrs Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates ,079, , , % 129, , $ q 12 5,075, , , % (69,176) ,960 $ ,075, , , % 18, ,960 $ q 12 5,075, , , % (5,135) $ ,075, , , % (13,001) $ q 12 5,075, , , % 12, $ ,075, , , % (70,435) $ q 12 5,075, , , % 2, $ ,075, , , % (156,262) $ q 12 5,075, , , % 6, $ ,075, , , % (775) $ q 12 5,075, , , % 48, $ ,075, , , % 31, , $ q 12 5,057, , , % 26, ,040 $ ,057, , , % (85,676) ,040 $ q 12 5,057, , , % (46,358) $ COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 11

17 BROWARD COUNTY FIRST QUARTER 2011 FIGURES AT A GLANCE Shopping Center Market Statistics First Quarter 2011 Net Deliveries UC Inventory Period # Ctrs Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates ,085 48,363,171 5,145,689 5,308, % (84,391) $ q 1,085 48,363,171 5,047,962 5,224, % (137,655) 1 7, $ ,085 48,356,071 4,900,055 5,079, % 115, , ,100 $ q 1,085 48,341,251 4,999,193 5,180, % 124, ,920 $ ,085 48,341,251 5,135,194 5,304, % 122, , ,920 $ q 1,084 48,332,951 5,164,300 5,417, % (106,213) ,300 $ ,084 48,332,951 5,050,349 5,311, % (197,232) 3 44, ,300 $ q 1,083 48,288,782 4,818,434 5,070, % (568,876) 2 45, ,469 $ ,082 48,243,603 4,242,561 4,456, % (418,540) 2 19, ,648 $ q 1,081 48,223,623 3,901,003 4,017, % (49,396) , ,459 $ ,079 47,744,001 3,401,728 3,488, % (2,470) , ,902 $ q 1,074 47,322,318 2,984,940 3,064, % 92, , ,156 $ ,073 47,128,634 2,891,085 2,963, % 175, , ,884 $ q 1,069 46,348,195 2,334,843 2,358, % 614, , ,377,146 $ ,067 45,713,016 2,265,311 2,337, % 399, , ,731,803 $ q 1,062 45,265,944 2,228,473 2,290, % (119,349) 6 68, ,927,198 $19.55 Specialty Center Market Statistics First Quarter 2011 Net Deliveries Period # Ctrs Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates ,040 70,773 70, % (1,400) $ q 3 365,040 69,373 69, % (55,548) $ ,040 13,825 13, % $ q 3 365,040 13,825 13, % 10, $ ,040 24,711 24, % 14, $ q 3 365,040 39,361 39, % 11, $ ,040 50,760 50, % $ q 3 365,040 50,760 50, % 12, $ ,040 63,367 63, % (10,939) $ q 3 365,040 52,428 52, % (23,984) $ ,040 28,444 28, % (369) $ q 3 365,040 28,075 28, % (7,900) $ ,040 20,175 20, % (6,675) $ q 3 365,040 13,500 13, % (1,600) $ ,040 11,900 11, % 1, $ q 3 365,040 13,500 13, % 2, $10.00 UC Inventory Total Retail Market Statistics First Quarter 2011 Net Deliveries UC Inventory Period # Blds Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates , ,422,350 8,612,254 8,820, % 74, , ,910 $ q 7, ,385,901 8,639,828 8,858, % (266,249) 3 28, ,385 $ , ,357,806 8,342,332 8,564, % 155, , ,480 $ q 7, ,342,513 8,478,988 8,704, % 49, , ,006 $ , ,326,243 8,524,393 8,738, % 213, , ,825 $ q 7, ,907,606 8,256,385 8,533, % (146,511) 2 24, ,907 $ , ,883,406 8,064,101 8,362, % (270,250) , ,837 $ q 7, ,614,092 7,519,125 7,822, % (773,331) 3 50, ,814 $ , ,563,913 6,687,681 6,999, % (505,094) 8 121, ,793 $ q 7, ,442,090 6,174,235 6,372, % 29, , ,079 $ , ,533,754 5,357,594 5,493, % 3, , ,507,090 $ q 7, ,103,665 4,947,303 5,066, % (466,517) 9 274, ,644,126 $ , ,834,032 4,181,714 4,330, % 455, ,178, ,778,393 $ q 7, ,675,664 3,527,666 3,627, % 628, , ,588,702 $ , ,963,621 3,370,066 3,544, % 654, , ,444,989 $ q 7, ,258,152 3,367,799 3,492, % 26, , ,803,222 $ THE COSTAR RETAIL REPORT 2011 COSTAR GROUP, INC.

18 LEASING ACTIVITY FIRST QUARTER 2011 BROWARD COUNTY Leasing Highlights in Select CoStar Markets Color Coded by Rate 2011 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 13

19 BROWARD COUNTY FIRST QUARTER 2011 LEASING ACTIVITY Historical Rental Rates Based on NNN Rental Rates Power Center Specialty Center General Retail Shopping Center Mall Total Market $25.00 $23.00 $21.00 Dollars/SF/Year $19.00 $17.00 $15.00 $13.00 $11.00 $ q q q q q q q q q q 2011 by Available Space Type Percent of All Vacant Space in Direct vs. Sublet by Building Type Percent of All Vacant Space by Building Type 2% Shopping Center Mall General Retail Power Center 98% Specialty Center Direct Sublet 0% 10% 20% 30% 40% 50% 60% 70% GLA By Building Type Ratio of Total GLA by Building Type Future Space Available Space Scheduled to be Available for Occupancy* Shopping Center General Retail Mall Power Center Specialty Center Millions of Square 0Feet Millions q q q 2012 * Includes Under Construction Spaces 14 THE COSTAR RETAIL REPORT 2011 COSTAR GROUP, INC.

20 LEASING ACTIVITY FIRST QUARTER 2011 BROWARD COUNTY 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 1 Pine Island Plaza Plantation 86,156 1st Burlington Coat Factory The Rotella Group, Inc. Equity One, Inc. 2 Westfork Plaza Southwest Broward 51,282 1st Winn Dixie N/A Terranova Corporation N Andrews Ave Fort Lauderdale 13,336 1st N/A N/A Atlantic Commercial Group 4 Pasadena Plaza Hollywood 10,000 1st Kiddie City Early Education Center Direct Deal Neal Realty & Investments, Inc., 5 Bal Harbor Square Fort Lauderdale 9,450 1st N/A N/A Retail Property Group, Inc. 6 Westfork Plaza Southwest Broward 7,636 1st N/A N/A Terranova Corporation 7 Miramar Square Bldg 1 Southwest Broward 7,037 1st The Beauty Mall N/A Woolbright Development, Inc N State Road 7 NW Broward/Coral Springs 7,000 1st N/A N/A Wiz Realty, Inc N University Hollywood 6,000 1st N/A N/A Weingarten Realty Investors 10 Mercede American Plaza Plantation 5,300 1st N/A Direct Deal Bilu Realty S 30th Ave Hallandale 5,000 1st N/A N/A Don Bailey Carpets, Inc E Oakland Park Blvd Fort Lauderdale 4,350 1st N/A N/A Atid Investments Llc 13 The Fountains* Plantation 4,200 1st Karate America N/A Developers Diversified Realty 14 Coral Landings III - Phase I NW Broward/Coral Springs 4,092 1st N/A N/A Stiles Realty Company 15 Deerfield Pompano Beach 4,070 1st Panera Bread N/A Select Strategies Realty 16 El Dorado Plaza Pompano Beach 4,000 1st N/A Direct Deal Continental Real Estate Companies 17 Bal Harbor Square Fort Lauderdale 3,920 1st N/A N/A Retail Property Group, Inc. 18 Boulevard Square Southwest Broward 3,913 1st Denny s N/A Select Strategies Realty Cleary Blvd Plantation 3,839 1st N/A N/A CB Richard Ellis SW 160th Ave Southwest Broward 3,700 1st Confusio Express N/A William S. Lebo & Company 21 Jacaranda Square Plantation 3,590 1st N/A N/A Gator Investments N University Hollywood 3,546 1st N/A N/A Weingarten Realty Investors 23 Deerfield Pompano Beach 3,500 1st Time 2 Play N/A Select Strategies Realty 24 Post-Haste Plaza Hollywood 3,400 1st Memorial Regional Hospital RW Banks Real Estate Inc. Sara David Realty, Inc. 25 Pompano Citi Centre Pompano Beach 3,394 1st N/A Direct Deal Berger Commercial Realty Corp N State Road 7 NW Broward/Coral Springs 3,300 1st N/A N/A Wiz Realty, Inc. 27 Harbour Auto Mall Plantation 3,175 1st N/A N/A The Fitzgerald Group W Sunrise Blvd Plantation 3,010 1st Simply Fashion N/A N/A S University Dr Plantation 3,000 1st N/A Direct Deal Wiz Realty, Inc. 30 Plaza 76 Hollywood 3,000 1st N/A N/A ZLES Management Group Inc N University Hollywood 3,000 1st N/A N/A Weingarten Realty Investors Davie Blvd Fort Lauderdale 3,000 1st N/A N/A M. A. Haroon 33 The Stirling Town Center Southwest Broward 2,834 1st N/A N/A David & Joan Tepper 34 Lauderdale Lakes Mall Commercial Blvd 2,800 1st N/A N/A CB Richard Ellis 35 Sheridan Shops Southwest Broward 2,800 1st N/A N/A Suchman Retail Group, Inc. 36 The Shoppes of Oakland Forest Commercial Blvd 2,800 1st N/A N/A William S. Lebo & Company N Federal Hwy Pompano Beach 2,800 1st Mattress Firm Atlantic Retail Properties Trion Ventures I, Inc N Federal Hwy Fort Lauderdale 2,726 1st N/A N/A Retail Property Group, Inc. 39 Carolina Springs Plaza NW Broward/Coral Springs 2,700 1st N/A N/A Commercial Property Group, Inc. 40 The Promenade at Bay Colony Fort Lauderdale 2,500 1st N/A Direct Deal N.E.G. Property Services, Inc. * Renewal 2011 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 15

21 BROWARD COUNTY FIRST QUARTER 2011 SALES ACTIVITY The Optimist Sales Index Average of Two Highest Price/SF's and Two Lowest Cap Rates 10.0% Cap Rate Price/SF $ % 8.0% $600 Cap Rate Percentage 7.0% 6.0% 5.0% 4.0% 3.0% $500 $400 $300 $200 Dollars/SF 2.0% 1.0% $ % q q q q q q $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 Jan Dec Sales Volume Price/SF Bldg Size # RBA $ Volume Price/SF Cap Rate $300 $250 Millions of Sales Volume Dollars $250 $200 $150 $100 $50 $200 $150 $100 $50 Price/SF < 25,000 SF ,943 $ 156,260,101 $ % 25K-99K SF ,739 $ 66,431,117 $ % 100K-249K SF 5 686,389 $ 72,150,000 $ % $ $0 >250K SF 1 410,771 $ 7,970,000 $ 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 $280 Broward County US 10.0% Broward County US Dollars per SF $230 $180 $130 $80 Cap Rate Percentage 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% $ % Source: CoStar COMPS Source: CoStar COMPS 16 THE COSTAR RETAIL REPORT 2011 COSTAR GROUP, INC.

22 SALES ACTIVITY FIRST QUARTER 2011 BROWARD COUNTY 2011 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 17

23 BROWARD COUNTY FIRST QUARTER 2011 SALES ACTIVITY Select Land Sales Based on Commercially Zoned Land Sales Occurring From Jan March NE 7th Ave, Dania 1401 S Federal Hwy, Deerfield Beach University Dr, Davie Sale Price: $4,600,000 Sale Price: $4,250,000 Sale Price: $2,925,000 Acres: Acres: 3.73 Acres: 1.90 Price/SF: $4.72 Price/SF: $26.16 Price/SF: $35.42 Closing Date: 01/15/2010 Closing Date: 03/31/2010 Closing Date: 11/30/2010 Zoning: PEDD,Dania Zoning: B-2, Deerfield Beach Zoning: B-2, Davie Intended Use: Parking Lot Intended Use: Parking Lot Intended Use: Retail Buyer: BV FLL LLC Buyer: Van Tuyl Group Buyer: Southern Construction Systems, Inc. Seller: Park N Fly Inc Seller: Apolllon One Corp Seller: General Energy Corporation Miramar Pky, Hollywood Sale Price: $2,800,000 Acres: 2.73 Price/SF: $23.58 Closing Date: 06/11/2010 Zoning: Commercial Intended Use: Retail Buyer: Bokamper's Seller: Ross Realty Investments, Inc. Source: CoStar COMPS 18 THE COSTAR RETAIL REPORT 2011 COSTAR GROUP, INC.