Oklahoma City 2015 Mid-Year Office Market Summary

Oklahoma City Mid-Year Office Market Summary

TABLE OF CONTENTS Office Market Summary 1 Central Business District Submarket 2 3 Northwest Submarket 4-7 North Submarket 8-10 Medical Office Submarket 10 Midtown Submarket 11 West Submarket 12 13 Suburban Submarket 13 Submarket Map The information contained herein has been obtained from reasonably reliable sources. Price Edwards & Company makes no guarantee, either express or implied, as to the accuracy of such information. All data contained herein is subject to errors, omissions and changes. Reproduction in whole or in part, without prior written consent is prohibited.

Oklahoma City Mid-Year Office Market Summary Despite slumping energy prices the Oklahoma City office market continues to achieve healthy vacancy rates and historically high rental rates. However, dark clouds are on the horizon as energy prices are not expected to markedly improve in the second half of the year and vacancy rates are expected to moderately increase. An increased inventory of space brought about by a handful of new projects will also test the market s health. Overall, the city s vacancy rate increased from 15.2% to 15.8%. However, average rental rates across the market continue to rise. The first six months of brought an increase from $17.46 per square foot to $17.89 per square foot. The Central Business District s vacancy rate increased from 20.7% to 22.. Although the CBD s Class A vacancy increased from 0.7% to 3. it is still next to impossible for larger Class A tenants to find any downtown space options. Consequently, average Class A rental rates continue to climb. The average Class A rate now stands at $23.30 per square foot, up from $21.75 per square foot at the end of and $19.62 per square foot just a year ago. The true test of the CBD s health will be measured in the next two years as new construction and building renovations add a significant amount of space to the Class A inventory and at rates significantly above the Class A average. Demolition is currently underway at the site of what will become 499 Sheridan Avenue, an approximately 663,000 SF tower that has preleased approximately half of its space to Devon Energy. Another large tenant is rumored to be close to executing a lease for over 100,000 SF, but that could still leave roughly 200,000 square feet to be leased to others in a market that is fighting an uncertain local economy. Additionally, Devon will be vacating approximately 250,000 SF in other CBD buildings when the building is completed. The market faced a similar challenge 3 years ago when Devon moved into its 1.7 million square foot headquarters and performed admirably; never really missing a beat as it rose to record levels of Class A occupancy and rental rates. Sandridge Energy, one of downtown s largest stakeholders, has placed its entire 650,000 square foot campus on the market for sale, but how that impacts the market remains to be seen. The 85,000 SF Braniff Building is 10 occupied by other users and the 76,000 SF Parkside building has never been occupied nor marketed to outside users. The approximately half million square foot Sandridge Tower is being offered on a sale leaseback basis. This entire transaction bears watching as it should provide a barometer for the market as well as the company as both fight to overcome a depressed energy market. The overall suburban vacancy rate ticked slightly upward from 12.5% to 12.7% and rental rates rose from $17.46 to $17.54 per square foot. The Northwest submarket, which is the city s largest, saw a slight vacancy increase from 8.5% to 8.9%. Rental rates rose from $17.95 to $18.15 per square foot. Long the bell cow of the suburban market, the Northwest submarket continues to have very little quality space available, with Class A vacancies currently at 2.2%. That number could increase dramatically as over 250,000 square feet is expected to be vacated by three large tenants in the next 12 months. However several large tenants are currently searching for space so any spike in the vacancy rate could be short-lived as this existing space can be leased at rental rates well below those of new construction. We expect the market to take quite a few hits in the next 12-24 months but to weather the storm without too much of a spike in vacancies as the Oklahoma City economy remains relatively strong and diversified. We have frankly been a bit surprised the market has fared as well as it has in the face of $50 per barrel oil, but if prices remain low some fallout will occur as several companies have already announced significant layoffs and those companies will be looking to shed excess space either through sublease offerings or reduced footprints at lease renewal. Additionally the market will be dealing with new inventories of space brought about by new construction. If energy commodity pricing remains near current levels for another 12 months or more, we would not be surprised to see overall vacancy rates move up by as much as three percentage points during that period. (millions of square feet) 3 25% 15% 1 5% 20 15 10 5 0 $20.00 $15.00 $10.00 300000 250000 200000 150000 100000 50000 0-50000 -100000-150000 '06 '06 OKC Total Office Market Vacancy Market Vacancy '07 '07 '08 '08 '09 '09 CBD Vacancy '10 '10 '11 '11 '12 '12 Suburban Vacancy '13 '13 '14 OKC Total Office Market Inventory Occupied SF CBD Midtown Vacant SF OKC OFFICE MARKET RENTAL RATES Northwest North '14 West Suburban OKC TOTAL OFFICE MARKET ABSORPTION '15 '15 Mid-Year OKC Office Market Totals RSF 15,493,760 Vacant SF 2,444,242 Vacant % 15.8% Rate $17.89 1

Mid-Year Oklahoma City Office Market Summary CENTRAL BUSINESS DISTRICT SUBMARKET 25% HISTORICAL CBD VACANCY MID-YEAR CENTRAL BUSINESS DISTRICT REVIEW Aggregate vacancy rates increased from 20.7% to 22. 15% Class A vacancy increased from 0.7% to 3. 1 5% Class B vacancy increased from 17.3% to 18.8% vacancy decreased from to 55.5% to 55.1% Aggregate rental rates increased from $18.15 per SF to $18.58 per SF HISTORICAL CBD RENTAL RATES BY CLASS Class A Class B $25.00 Class A rates increased from $21.75 per SF to $23.30 $22.00 $19.00 $16.00 $13.00 Class B rates decreased from $18.07 per SF to $17.60 per SF rates increased from $13.19 per SF to $13.31 per SF The CBD experienced absorption of 13,000 SF $10.00 CENTRAL BUSINESS DISTRICT FORECAST CENTRAL BUSINESS DISTRICT 10 8 6 4 CBD OCCUPANCY BY CLASS Class A Class B Vacancy rates will remain near current levels until new buildings hit the market. Rental rates will only increase slightly as low energy prices weigh on the market. HISTORICAL CBD ABSORPTION 150000 100000 50000 0-50000 -100000-150000 -200000 2 Downtown Oklahoma City

Mid-Year Oklahoma City Office Market Summary CENTRAL BUSINESS DISTRICT SUBMARKET CBD Year Built Floors RSF Vacant SF Vacant % Rate CAF 100 Park Ave Building 1923/64 12 99,752 21,329 21% $14.50 12% 100 Park Ave 101 Park Avenue Building 1936 14 197,042 68,445 34% $14.50 16.34% 101 Park Ave. 20 N. Broadway 1981 19 307,388 0 $20.00 20 N Broadway Bank of Oklahoma Plaza 1972 16 212,816 5,119 2% $17.50 201 Robert S. Kerr Braniff Building 10 90,000 0 $23.00 324 N. Robinson Century Center Building 2 98,000 12,290 12% $20.00 100 W Main Chase Tower (Cotter Ranch Tower) 1971 36 514,317 209,818 4 $18.00 15% 100 N. Broadway City Place 1931/85 33 251,449 23,602 9% $18.00 14% 204 N. Robinson Corporate Tower 1980 14 277,849 3,897 1% $20.00 17.59% 101 N. Robinson Court Plaza 1923/79 10 78,381 18,757 23% $12.00 14% 228 Robert S. Kerr First National Center 1931 32 980,941 660,079 67% $13.00 19% 120 N. Robinson Hightower Building 1929 10 107,152 4,581 4% $18.00 15% 105 N. Hudson Leadership Square 1984 21 735,514 48,845 6% $24.00 211 N. Robinson Oklahoma Tower 1982 31 568,960 4,524 1% $24.00 210 Park Ave. One North Hudson 1927 11 73,000 0 $12.00 12% 401 W. Sheridan Robinson Plaza 1992 10 195,702 0 $17.00 17.8 55 N. Robinson Robinson Renaissance 1927/88 12 174,840 48,107 27% $18.00 25% 119 N. Robinson Sonic Building 2003 4 100,654 0 $24.50 8% 300 Johnny Bench Drive The Reserve 1922/97 4 71,616 0 $16.00 226 Dean A. McGee Avenue 5,135,373 1,129,393 22% $18.58 CENTRAL BUSINESS DISTRICT CBD Construction Year Built Floors RSF Vacant SF Vacant % Rate CAF Journal Record Building 1923/2016 6 100,000 73,267 73% $25.00 1 621 N. Robinson Totals 100,000 73,267 73% $25.00 3

Mid-Year Oklahoma City Office Market Summary NORTHWEST SUBMARKET 1 8% HISTORICAL NORTHWEST VACANCY MID-YEAR NORTHWEST SUBMARKET REVIEW Aggregate vacancy rates increased from 8.5% to 8.8% 6% Class A vacancy decreased from 3.1% to 2.2% 4% 2% Class B vacancy increased from 9.2% to 10.4% vacancy decreased from 14.7% to 13.7% Aggregate rental rates increased from $17.95 per SF to $18.15 per SF HISTORICAL NORTHWEST RENTAL RATES BY CLASS Class A Class B $25.00 Class A rental rates increased from $22.37 per SF to $22.85 per SF $20.00 Class B rental rates increased from $17.15 per SF to $17.20 per SF rental rates increased from $13.65 per SF to $14.08 per SF $15.00 $10.00 The Northwest Oklahoma City submarket experienced negative absorption of 6,000 SF during. NORTHWEST SUBMARKET FORECAST NORTHWEST OCCUPANCY BY CLASS NORTHWEST 10 8 6 4 Although demand remains strong, vacancy rates will continue to increase amid lower oil and gas prices. Over 300,000 SF of Class A space will hit this submarket in the next 12 months. Quoted rates will hold steady as landlords brace for potential cutbacks in the energy industry, which is heavily weighted toward this submarket. Class A Class B HISTORICAL NORTHWEST ABSORPTION 120000 100000 80000 60000 40000 20000 0-20000 -40000-60000 -80000 4 IBC Center

Mid-Year Oklahoma City Office Market Summary NORTHWEST SUBMARKET NORTHWEST Quail Springs Parkway Plaza Northwest Year Built Floors RSF Vacant SF Vacant % Rate CAF 14101-14201 Wireless Way 2001 3 147,852 0 $22.50 16% 14101-14201 Wireless Way 2525 Expressway 1974 6 72,960 16,799 23% $13.50 15% 2525 Northwest Expressway 4100 Perimeter Center 1982 3 47,317 0 $13.00 15% 4100 Perimeter Center Dr. 4101 Perimeter Center 1982 3 47,317 0 $13.00 15% 4101 Perimeter Center Dr. 4141 Northwest Expressway 1982 3 46,464 0 $16.00 16% 4141 Northwest Expressway 4200 Perimeter Center 1982 2 61,327 5,013 8% $13.00 15% 4200 Perimeter Center Dr. 4700 Gaillardia 2007 2 42,970 0 $25.00 15% 4700 Gaillardia Parkway 4727 Gaillardia 2009 2 37,624 0 $25.00 18% 4727 Gaillardia Parkway 4747 Gaillardia 2009 2 26,016 0 $25.00 18% 4747 Gaillardia Parkway 4801 Gaillardia 2000 3 74,432 0 $25.00 18.4% 4801 Gaillardia Parkway 4811 Gaillardia 2008 3 41,450 0 $24.00 15% 4811 Gaillardia Parkway 5100 Brookline 1974 10 107,496 4,888 4% $17.00 15% 5100 Brookline 5909 NW 1982 7 101,146 20,993 $15.00 15% 5909 Northwest Expressway 5

Mid-Year Oklahoma City Office Market Summary NORTHWEST SUBMARKET NORTHWEST Northwest Year Built Floors RSF Vacant SF Vacant % Rate CAF AAA Operations Center 2009 3 145,635 0 $20.00 3100 Quail Springs Parkway American Cancer Society 2001 1 45,000 0 $17.50 8400 Silver Crossing Atrium Towers 1980 6 156,106 0 $19.50 15% 3501-3503 N.W. 63rd Avaya Building 1998 1 57,000 12,740 22% $19.50 14400 Hertz Quail Springs Parkway Bradley Square 1984 1 30,000 1,800 6% $16.50 2932 N.W. 122nd Brookline Offices 1972 1 40,009 1,397 3% $12.00 6051 N. Brookline Caliber Park One & Two 2007 6 83,208 0 $23.00 17.2% 14201-14301 Caliber Drive Center 3000 1972 2 115,800 24,476 21% $13.00 12% 3000 United Founders Blvd. Chase Bank Building 1976 4 54,793 3,829 7% $17.50 15% 6303 N Portland Ave Chase Park 1981 2 30,281 3,277 1 $13.50 16.5% 4323 NW 63rd St Commerce Center South 1982 3 65,857 0 $16.00 11% 9520 N. May Coppertree Centre 1982 3 26,928 1,200 4% $13.00 1 3727 N.W. 63rd Cross Rock Place 1992 2 60,049 0 $22.00 12% 3595 W Memorial Rd Cross Rock Plaza I 1984 3 61,289 0 $22.00 15% 13801 Wireless Way Enterprise Plaza 1981 3 92,180 1,345 1% $17.00 15% 5600 N. May FBI Building 1999 1 110,000 0 $24.00 3301 W. Memorial Fifty-Six Expressway Place 1982 3 58,340 19,258 33% $12.50 5601 N.W. 72nd Five Corporate Plaza 1980 3 49,486 0 $17.50 15% 3625 N.W. 56th Grand Centre 1979 5 101,217 13,938 13% $18.00 15% 5400 N.W. Grand Blvd. Hartford Insurance 1999 1 100,000 0 $18.00 7800 N.W. 85th Terrace HealthSmart Building 1999 2 40,000 0 $20.00 12% 3121 Quail Springs Parkway IBC Center 1983 10 278,843 3,549 1% $23.00 15% 3817 Northwest Expressway Jamestown Office Park 1972/79 2 74,000 5,582 7% $13.00 1 3037 N.W 63rd Lake Park Tower 1983 6 105,036 71,828 68% $15.00 15% 6525 N. Meridian Lakepointe Towers 1981 6 183,600 58,993 32.% $16.00 15% 4005-4013 Northwest Expressway Lakepointe West 1982 6 85,246 11,883 13% $16.00 15% 4045 N.W. 64th Lakeshore Tower 1982 3 33,900 3,310 9% $13.00 15% 4301 N.W. 63rd Landmark Towers 1969/72 10 306,960 51,728 16% $16.00 12% 3535-3545-3555 NW 58th Mercury Insurance Building 1986 2 100,103 14,514 14% $15.00 12.5% 7301 Northwest Expressway North Shore Office Plaza 2001 5 56,418 0 $23.00 16% 10900 Hefner Drive Northwest Office Center 1973 2 85,833 4,414 5% $14.00 15% 4334 Northwest Expressway Oil Center 1973/1994 12 249,657 46,772 18% $17.00 13% 2601 Northwest Expressway One Corporate Plaza 1979 1 63,011 2,845 4% $17.50 15% 3525 NW. 56th 6

Mid-Year Oklahoma City Office Market Summary NORTHWEST SUBMARKET Northwest Year Built Floors RSF Vacant SF Vacant % Rate CAF Parkway Commons 2003 2 40,729 0 $20.00 15% 13900 N. Portland Portland Plaza 1969 3 35,425 0 $13.00 14% 5700 N. Portland Quail Commerce Center 1998 1 128,500 0 $18.50 3201 Quail Springs Parkway Quail Creek North 1973 2 36,124 1,970 5% $12.50 15% 11032 Quail Creek Rd. Quail Ridge Tower 1975 4 49,600 8,684 17% $12.50 16.5% 11212 N. May Quail Springs Parkway Plaza I & II 1986 6 298,610 1,271 1% $23.00 14% 14000 Quail Springs Parkway Rees Plaza at East Wharf 2002 3 40,998 0 $28.00 16.8% 9211 Lake Hefner Parkway Sprint PCS Building 1999 1 89,132 0 $15.00 8525 Silver Crossing St. Martins Building 1990 2 59,712 0 $16.50 13% 9020 N. May The Parkway Building 1977 6 71,619 15,157 21% $18.50 15% 3401 NW 63rd Street The Summit Building 1975 5 50,000 3,238 6% $12.50 13% 5929 N. May Three Corporate Plaza 1980 3 49,920 6,287 12% $17.50 15% 3613 NW. 56th Two Corporate Plaza 1982 3 85,551 0 $15.00 14% 5555 NW. Grand Blvd. Union Plaza 1982 18 248,802 25,046 1 $20.00 14% 3030 Northwest Expressway Williams Sonoma 1998 1 35,862 0 $17.50 7720 NW 84th St Totals 5,320,740 468,024 8.8% $18.15 Northwest Construction Year Built Floors RSF Vacant SF Vacant % Rate CAF 3250 Parkway Center 2 37,871 12,000 32% $24.00 15% 3250 Quail Springs Parkway Totals 37,871 12,000 32% $24.00 NORTHWEST 4801 Gaillardia 7

Mid-Year Oklahoma City Office Market Summary NORTH SUBMARKET HISTORICAL NORTH VACANCY MID-YEAR NORTH SUBMARKET REVIEW Aggregate vacancy rates decreased from 14.6% to 14.1% 15% Class A vacancy decreased from 7.5% to 4.6% 1 Class B vacancy increased from 6.9% to 7.2% 5% vacancy decreased from 61.3% to 61.1% Aggregate rental rates increased from $17.50 per SF to $17.87 per SF HISTORICAL NORTH RENTAL RATES BY CLASS Class A Class B $25.00 Class A rental rates remained $21.85 per SF Class B rental rates increased from $17.14 per SF to $17.72 per SF $20.00 rental rates held steady at $12.52 per SF $15.00 The Oklahoma City North submarket experienced positive absorption of 9,000 SF $10.00 NORTH SUBMARKET FORECAST NORTH OCCUPANCY BY CLASS Vacancy rates should contine to trend downward 10 Rental rates will remain near current levels. 8 NORTH 6 4 Class A Class B HISTORICAL NORTH ABSORPTION 300000 250000 200000 150000 100000 50000 0-50000 -100000-150000 North Year Built Floors RSF Vacant SF Vacant % Rate CAF 1001 Wilshire 2003 4 43,316 0 $20.00 13% 1001 W Wilshire Ave 4345 N. Lincoln 3 160,000 0 $15.00 4335 N. Lincoln 50 Penn Place 1973 16 178,315 13,303 7% $17.50 12% 5100 N. Pennsylvania 5100 Circle Building 1981 6 74,799 0 $17.50 14% 5100 N. Classen Blvd. 8 The Waterford

Mid-Year Oklahoma City Office Market Summary NORTH SUBMARKET North Year Built Floors RSF Vacant SF Vacant % Rate CAF 5701 N. Shartel 1982 4 97,102 0 $18.00 13% 5701 N. Shartel 7 & 9 Broadway Executive Park 1979 1 30,505 0 $18.00 200 NW 66th Broadway North 1974 2 25,703 4,259 16% $16.00 13% 7301 N. Broadway Broadway Plaza 2003 3 50,726 0 $12.00 13% 16 NW 63rd Broadway Sixty-Eight 1979 3 40,000 0 $14.50 14% 6801 N. Broadway Central Park One 1982 6 113,134 0 $18.00 14% 525 Central Park Dr. Central Park Two 1984 6 124,463 0 $18.00 14% 515 Central Park Dr. Chase Bank Building 1981 4 34,701 2,500 7% $20.00 15% 1200 NW 63rd St Columbus Square 1982 3 36,559 0 $17.00 15% 1001 NW 63rd Five North Broadway 1972 3 44,805 15,971 35% $16.00 15% 6601 N. Broadway Harvey Parkway 1982 6 97,912 0 $20.00 17% 301 NW 63rd Kemper Insurance Buidling 2009 3 48,830 0 $27.50 601 E. Britton Lincoln Plaza Office Park 1968 2 243,423 226,093 92% $12.00 12% 4545 Lincoln Blvd. Market Center I 2008 2 46,368 0 $22.75 701 Market Dr Market Center II 2009 2 50,000 0 $22.75 12% 713 Market Dr Nichols Hills Executive Center 1979 2 52,426 0 $18.00 1000 W. Wilshire Nichols Hills Tower 1975 4 29,101 9,309 31% $15.00 11% 6410 Avondale Dr One Benham Place 1984 8 152,959 33,347 21% $18.50 15% 9400 N. Broadway One Broadway Center 1980 3 34,984 0 $14.00 9% 100 NW 63rd One Broadway Executive Park 1979 3 58,832 0 $17.00 12% 201 NW 63rd One Western Plaza 1989 2 50,948 14,546 28% $14.00 16.5% 5500 N. Western Paragon Building 1981 5 110,791 8,907 8% $18.00 15% 5801 N. Broadway Pavilion Building 1974 3 39,895 0 $15.00 12% 6701 N. Broadway Penn Park 1974 3 78,643 18,310 23% $13.50 13% 5001-5005-5009-5015 N. Penn Registry 1980 2 93,167 18,860 $14.00 15% 2200 NW 50th Richmond Square 1982 2 27,606 4,709 17% $15.50 12% 4900 Richmond Square Santa Fe North 1981 4 44,000 2,038 4% $17.00 14% 6 NE. 63rd The Commons on Broadway 2009 3 50,188 1,686 3% $23.00 18% 11600 Broadway Extension Three Broadway Executive Park 1977 3 45,256 21,354 47% $17.00 1 6501 N. Broadway Two Broadway Executive Park 1980 3 52,205 9,047 17% $17.00 11% 205 NW 63rd Valliance Tower 1983 22 299,137 3,532 1% $22.00 17.8% 1601 Northwest Expressway Waterford A 1983 4 150,048 6,268 4% $21.50 16% 6301 Waterford Blvd. Waterford B 1983 2 35,468 7,889 22% $21.50 16% 6303 Waterford Blvd. Waterford C 1983 4 81,575 7,606 9% $21.50 16% 6305 Waterford Blvd. Waterford D 1983 2 34,087 3,227 9% $21.50 16% 6307 Waterford Blvd. Totals 3,061,977 432,761 14.1% $17.87 NORTH 9

Mid-Year Oklahoma City Office Market Summary MEDICAL OFFICE SUBMARKET NORTH Medical Year Built Floors RSF Vacant SF Vacant % Rate CAF Deaconess Medical North 1996 3 55,209 4,159 7% $21.00 5701 N Portland Ave Deaconess Medical South 1991 6 119,726 4,477 3% $21.00 5401 N Portland Ave McAuley Physician Offices 1986 4 42,246 0 $17.00 4205 McAuley Blvd NeuroScience Institute 1998 3 54,558 1,254 2% $19.00 4120 W Memorial Rd Northwest Medical Center 1981 6 82,664 0 $17.00 13.4% 3330 NW 56th St Parkway Commons Medical Center 2008 2 27,000 0 $20.00 15% 14100 Parkway Commons Dr Parkway Medical Center 1980 2 44,983 0 $19.00 1 3500 NW 56th St Pasteur Medical Building 1959 5 83,858 5,852 6% $16.50 15% 1111 N. Lee Ave. Physicians & Surgeons Bldg 1962 11 75,000 14,947 19% $15.00 1211 N Shartel Ave Physicians Bldg - A 1970 9 68,349 4,440 6% $16.50 14% 3435 NW 56th St Physicians Bldg - B 1986 9 128,030 7,136 5% $20.00 14% 3433 NW 56th St Physicians Bldg - C 1975 8 75,158 0 $16.50 14% 3400 NW Expressway Physicians Bldg - D 1994 8 120,813 2,518 2% $18.50 14% 3366 NW Expressway Plaza Physician Offices 1992 7 70,050 6,572 9% $18.00 4140 W Memorial Rd Presbyterian Professional Bldg 1995 4 91,122 0 $14.00 15% 711 Stanton L Young Quail Brook Medical 2008 3 34,222 2,462 7% $21.50 15% 13901 McAuley Blvd Saints Medical Plaza 2008 5 82,010 0 $24.36 16.9% NW 9th St & N Walker Ave SMC Medical Office Bldg 1967 3 29,054 3,215 11% $14.00 4200 S Douglas Ave SMC Medical Plaza 1994 5 58,648 0 $17.00 4221 S Western Ave St. Anthony ASC 1998 2 36,551 2,897 7% $18.00 14% 6205 N Santa Fe Ave St. Anthony Healthplex East 3 52,675 6,454 12% $26.00 12% 3400 S. Douglas Blvd. St. Anthony Healthplex North 4 96,422 2,240 2% $26.00 13401 N. Western St. Anthony Healthplex South 3 52,675 9,093 17% $26.00 12% 13500 S. Tulsa Ave St. Anthony North POB 1990 2 28,281 2,197 7% $18.00 19.4% 6201 N Santa Fe Ave St. Anthony Prof. Bldg 1987 6 83,898 3,922 4.% $18.00 11% 608 NW 9th St Tower Physicians Offices 1986 11 93,639 2,571 2% $16.00 4200 W Memorial Rd Totals 1,786,841 86,406 4.8% $19.03 10 St. Anthony Healthplex

Mid-Year Oklahoma City Office Market Summary MIDTOWN SUBMARKET 15% 1 HISTORICAL MIDTOWN VACANCY MID-YEAR MIDTOWN SUBMARKET REVIEW Aggregate vacancy rates increased from 16.4% to 16.7% Class B vacancy rates increased from 17.3% to 17.8% 5% vacancy rates decreased from 7.2% to 5.4% Aggregate rental rates increased from $14.69 per SF to $15.98 per SF $18.00 $16.00 HISTORICAL MIDTOWN RENTAL RATES $20.00 Class B Class B rental rates increased from $14.99 per SF to $16.41 per SF rental rates remained level at $11.57 per SF The Midtown Submarket experienced negative absorption of 3,000 SF $14.00 MIDTOWN SUBMARKET FORECAST $12.00 Vacancy rates will likely remain near current levels for the remainder of the year. $10.00 Rental rates will remain at or near current levels. MIDTOWN OCCUPANCY 10 8 6 4 MIDTOWN Class B HISTORICAL MIDTOWN ABSORPTION 200000 150000 100000 50000 0-50000 -100000-150000 Mid-Year Oklahoma City Office Market Summary MIDTOWN SUBMARKET Midtown Year Built Floors RSF Vacant SF Vacant % Rate CAF 2000 Classen Center 1965 10 318,605 0 $17.50 13% 2000 N Classen Blvd 4801 Classen Building 1974 2 33,151 6,216 18% $10.50 4801 N Classen Blvd Cameron Building 1955/57 5 81,493 0 $12.00 1 2901 Classen Blvd Classen Park I 1980 2 52,800 3,700 7% $12.00 13% 3700 N Classen Blvd Classen Park II 1982 3 52,800 0 $12.00 13% 3800 N Classen Blvd Santa Fe Building 1954/82 4 55,203 7,491 13% $11.00 1 3814 N. Santa Fe Ave. Shepherd Mall Office Complex 1964/95 2 709,000 199,981 28% $17.00 2401 NW 23rd Street Totals 1,303,052 217,388 16.7% $15.98 The Cameron Building 11

Mid-Year Oklahoma City Office Market Summary WEST SUBMARKET 4 35% 3 25% 15% 1 HISTORICAL WEST VACANCY MID-YEAR WEST SUBMARKET REVIEW Aggregate vacancy rates decreased from 31.8%to 29.2% Class B vacancy totals increased from 30.3% to 31.5% vacancy totals decreased from 34.1% to 24.1% 5% Aggregate rental rates increased from $12.45 per SF to $14.21 per SF Class B rental rates increased from $12.63 per SF to $14.77 per SF HISTORICAL WEST RENTAL RATES BY CLASS $15.00 Class B rental rates increased from $12.18 per SF to $12.92 per SF The West Oklahoma City Office Market experienced positive absorption of 132,000 SF due to the inclusion of the OKC Works Building 20 into our market report. $12.00 WEST SUBMARKET FORECAST Vacancy rates should improve slightly $9.00 Rental rates in the submarket should remain flat for the rest of the year WEST OCCUPANCY BY CLASS 8 7 WEST 6 5 4 3 1 Class B HISTORICAL WEST ABSORPTION 150000 120000 90000 60000 30000 0-30000 -60000 West Construction Year Built Floors RSF Vacant SF Vacant % Rate CAF Westgate One 5 200,000 200,000 10 $18.50 15% 10401 West Reno Totals 200,000 200,000 10 $18.50 12 The Parkway

Mid-Year Oklahoma City Office Market Summary WEST SUBMARKET West Year Built Floors RSF Vacant SF Vacant % Rate CAF 300 Meridian Place 1982 2 78,650 11,292 14% $12.00 11% 300 N Meridian Ave Bank 2 Tower 1975 7 65,520 22,904 34% $13.50 12% 909 S. Meridian Metro Office Park 1981 3 60,750 15,157 24% $13.50 4300 Highline Blvd. OKCWorks - OKC20 1963 4 170,165 75,000 44% $18.50 15% 7725 W. Reno Avenue Sovereign Office Park 1983 1 42,260 17,600 41% $12.00 1300 Sovereign Row The Parkway 1982 6 96,960 54,723 56% $14.00 15% 1300 S. Meridian West Park Office Center 1986 1 58,786 0 $12.75 715 Metropolitan Will Rogers Office Park 1 1984 1 52,779 0 $11.50 16% 4400 Will Rogers Parkway Will Rogers Office Park 2 1985 1 46,748 0 $11.50 1 4350 Will Rogers Parkway Totals 672,618 196,676 29.2% $14.21 SUBURBAN OCCUPANCY BY CLASS 10 8 6 Mid-Year Oklahoma City Office Market Summary SUBURBAN SUBMARKET WEST 4 MID-YEAR SUBURBAN SUBMARKET REVIEW Aggregate vacancy rates increased from 12.5% to 12.7% Class A Class B Class A vacancy decreased from 4.5% to 3. HISTORICAL SUBURBAN RENTAL RATES BY CLASS $25.00 Class A Class B Class B vacancy increased from 11. to 12.2% $20.00 vacancy decreased from 29. to 26.9% Aggregate rental rates increased from $17.46 per SF to $17.54 per SF $15.00 Class A rental rates increased from $22.20 per SF to $22.53 per SF $10.00 Class B rental rates increased from $16.55 per SF to $17.04 per SF 250000 200000 HISTORICAL SUBURBAN ABSORPTION rental increased from $13.04 per SF to $13.34 per SF Suburban Oklahoma City experienced positive absorption of 146,000 SF during the first 150000 half of. 100000 50000 SUBURBAN SUBMARKET FORECAST 0 2010 Suburban rental rates should near current levels Suburban vacancy rates should increase slightly until oil prices stabilize and improve Suburban Submarket Totals 10,358,387 1,314,849 12.7% $17.54 13

Price Edwards & Company Technology As a forward thinking company, Price Edwards & Company strives to stay on the cutting edge of business technology. We maintain a five-member, full-time Information Technology staff, which allows us to custom develop and provide products and services to help our clients achieve their real estate goals. priceedwards.com Hundreds of tenant prospect, buyer, and seller leads originate from our primary Internet presence: priceedwards.com. Through the website, we maintain a comprehensive listing of all the properties we represent. Our website also houses staff bios, press releases, market studies, and functions as a gateway to our various other online tools. Search engine optimization is a priority for priceedwards.com and ensures that our listings rank among the top of Internet searches. Price Edwards deployed a mobile version of priceedwards. com that uses the GPS in smartphones to help located nearby properties and quickly put clients in contact with brokers. Work Order System We have created our own work order system to service our tenants. Building engineers are instantly notified on their phones via text message. The real power of our system is found in its ability to report on the status of a work order. Price Edwards can report on all open work orders by property, by engineer, or by status. Using our system allows us to identify trends or problems early. This information can be included in monthly reports delivered via email on a schedule providing a higher level of transparency. Client Reporting The Price Edwards & Company Extranet uses Microsoft SharePoint to deliver unparalleled client reporting. Through our secure website, clients can instantly receive all monthly reports. In addition, clients have access to all historical reports, copies of lease files, and contract information with profiles of all the Price Edwards staff assigned to their asset. Market Data Price Edwards & Company has been the top source for Oklahoma City commercial real estate data for over twenty years. Our popular semi-annual market summaries have now been taken interactive. Price Edwards launched okcmarketdata.com in 2008. This web app version of our market summaries allows the user to slice and dice the Oklahoma City commercial real estate market by asset type, lease rates, submarket, and sales date. Properties represented by Price Edwards have extended information including available suites, floor plans, and photos. Email Marketing Our email marketing program is second to none. We maintain a list of thousands of investor and real estate professional contacts, and use that information to market an asset to a target audience, assuring maximum exposure. Our strategy encourages a potential client to follow up via priceedwards. com and allows us to track the response of a particular message. Mobile Apps Price Edwards & Company developed its own native iphone and ipad applications, now available in the Apple App Store. The products allow users, free of charge, to review property data on office buildings, shopping centers, industrial projects, and apartment communities across the Oklahoma City metro area. Information includes: lease rates, occupancy, sales history, performance relative to the market and other useful tools for property owners and investors. The ipad app also features content from Price Edwards commercial real estate market summaries. Development is underway to port the apps to run on Google s Android platform. Price Edwards is the only firm to provide apps specific to the Oklahoma City commercial real estate market. Price Edwards & Company 210 Park Avenue, Suite 1000, Oklahoma City, OK 73102 Phone (405) 843 7474 Fax (405) 236 1849 www.priceedwards.com