The CoStar Retail Report

The CoStar Retail Report T H I R D Q U A R T E R 2 0 1 1 Kansas City Retail Market

Kansas City Retail Market THIRD QUARTER 2011 KANSAS CITY Table of Contents Table of Contents.................................................................... A Methodology........................................................................ B Terms & Definitions.................................................................. C Market Highlights & Overview......................................................... 1 CoStar Markets & Submarkets......................................................... 4 Inventory & Development Analysis...................................................... 5 Construction Activity Map Inventory & Development Analysis Select Top Deliveries Select Top Under Construction Properties Figures at a Glance.................................................................. 10 Figures at a Glance by Building Type & Market Figures at a Glance by Building Type & Submarket Historical Figures at a Glance Leasing Activity Analysis............................................................. 17 Leasing Activity Map Leasing Activity Analysis Select Top Lease Transactions Sales Activity Analysis............................................................... 20 Sales Activity Analysis Select Top Sales Transactions Select Land Sales Analysis of Individual CoStar Markets.................................................. 23 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 2011 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT A

KANSAS CITY THIRD QUARTER 2011 Kansas City Retail Market 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 1-877-7COSTAR, or visit our web site at www.costar.com Copyright 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. 1331 L ST NW Washington, DC USA 20005 (800) 204-5960 www.costar.com NASDAQ: CSGP B THE COSTAR RETAIL REPORT 2011 COSTAR GROUP, INC.

Kansas City Retail Market THIRD QUARTER 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 100,000 350,000 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. 50,000 500,000 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. 250,000 600,000 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

KANSAS CITY THIRD QUARTER 2011 Kansas City Retail Market 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. 80,000 250,000 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.

Kansas City Retail Market OVERVIEW THIRD QUARTER 2011 KANSAS CITY Kansas City s Decreases to 9.4% Net Absorption Positive 408,520 SF in the Quarter The Kansas City retail market experienced a slight improvement in market conditions in the third quarter 2011. The vacancy rate went from 9.7% in the previous quarter to 9.4% in the current quarter. Net absorption was positive 408,520 square feet, and vacant sublease space increased by 23,061 square feet. Quoted rental rates decreased from second quarter 2011 levels, ending at $12.52 per square foot per year. A total of four retail buildings with 131,093 square feet of retail space were delivered to the market in the quarter, with 55,249 square feet still under construction at the end of the quarter. Net Absorption Retail net absorption was strong in Kansas City third quarter 2011, with positive 408,520 square feet absorbed in the quarter. In second quarter 2011, net absorption was positive 149,540 square feet, while in first quarter 2011, absorption came in at positive 115,106 square feet. In fourth quarter, positive 115,707 square feet was absorbed in the market. Some of the notable move-outs of 2011 include Borders closing stores in Kansas City and Overland Park as well as Bassett Furniture vacating 20,500 square feet at Olathe Station. Some of the notable move-ins occurring 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 Goods moving into 45,000 square feet at 18900 W College; and Nordstrom Rack moving into 34,925 square feet at 9510 Quivira Rd. Kansas City s retail vacancy rate decreased in the third quarter 2011, ending the quarter at 9.4%. Over the past four quarters, the market has seen an overall decrease in the vacancy rate, with the rate going from 9.8% in the fourth quarter, to 9.9% at the end of the first quarter 2011, 9.7% at the end of the second quarter 2011, to 9.4% 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 fourth quarter, there were 451,533 square feet of vacant sublease space. Currently, there are 502,424 square feet vacant in the market. Notable Lease Signings Some of the notable lease signings occurring in 2011 included: the 100,000-square-foot-lease signed by Merlin Entertainments Group at Crown Center Shops; the 34,925- square-foot-deal signed by Nordstrom Rack at 9510 Quivira Rd; and the 33,166-square-foot-lease signed by Bed Bath & Beyond at The Pavilions At Hartman Heritage Center. Rental Rates Average quoted asking rental rates in the Kansas City retail market are down over previous quarter levels, and down from their levels four quarters ago. Quoted rents ended the third quarter 2011 at $12.52 per square foot per year. That compares to $12.53 per square foot in the second quarter 2011, and $12.57 per square foot at the end of the fourth quarter. This represents a 0.1% decrease in rental rates in the current quarter, and a 0.40% decrease from four quarters ago. Inventory & Construction During the third quarter 2011, four buildings totaling Rates by Building Type 2006-2011 Power Center Specialty Center General Retail Shopping Center Mall Total Market 23% 21% 19% 17% 15% 13% 11% 9% 7% 5% 3% 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 2011 2011 2011 2011 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 1

KANSAS CITY THIRD QUARTER 2011 Kansas City Retail Market OVERVIEW 131,093 square feet were completed in the Kansas City retail market. Over the past four quarters, a total of 366,735 square feet of retail space has been built in Kansas City. In addition to the current quarter, three buildings with 13,447 square feet were completed in second quarter 2011, seven buildings totaling 140,506 square feet completed in first quarter 2011, and 81,689 square feet in three buildings completed in fourth quarter. There were 55,249 square feet of retail space under construction at the end of the third quarter 2011. 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 105,720,474 square feet in 6,552 buildings and 712 centers as of the end of the third quarter 2011. Shopping Center The Shopping Center market in Kansas City currently consists of 671 projects with 39,045,899 square feet of retail space in 1,546 buildings. In this report the Shopping Center market is comprised of all Community Center, Neighborhood Center, and Strip Centers. After absorbing 169,742 square feet and delivering 45,000 square feet in the current quarter, the Shopping Center sector saw the vacancy rate go from 14.3% at the end of the second quarter 2011 to 14.0% this quarter. Over the past four quarters, the Shopping Center vacancy rate has gone from 14.3% at the end of the fourth quarter, to 14.3% at the end of the first quarter 2011, to 14.3% at the end of the second quarter 2011, and finally to 14.0% at the end of the current quarter. Rental rates ended the third quarter 2011 at $12.18 per square foot, up from the $12.16 they were at the end of second & Rent Past 9 Quarters Price in Dollars per Unit $13 $13 $13 $13 $12 $12 $12 Average Rental Rate 2011 Rate 2011 2011 10.4% 10.2% 10.0% 9.8% 9.6% 9.4% 9.2% 9.0% Rate Percentage quarter 2011. Rental rates have trended up over the past year, going from $12.17 per square foot a year ago to their current levels. Net absorption in the Shopping Center sector has totaled 173,338 square feet over the past four quarters. In addition to the positive 169,742 square feet absorbed this quarter, negative (4,127) square feet was absorbed in the second quarter 2011, negative (8,465) square feet was absorbed in the first quarter 2011, and positive 16,188 square feet was absorbed in the fourth quarter. Power Centers The Power Center average vacancy rate was 6.5% in the third quarter 2011. With positive 62,792 square feet of net absorption and 13,976 square feet in new deliveries, the vacancy rate went from 7.0% at the end of last quarter to 6.5% at the end of the third quarter. In the second quarter 2011, Power Centers absorbed negative (40,428) square feet, delivered 6,195 square feet, and the vacancy rate went from 6.5% to 7.0% over the course of the quarter. Rental rates started the quarter at $16.65 per square foot and ended the quarter at $16.93 per square foot. A year ago, in third quarter, the vacancy rate was 6.7%. Over the past four quarters, Power Centers have absorbed a cumulative 42,479 square feet of space and delivered cumulative 23,171 square feet of space. Vacant sublease space has gone from 28,500 square feet to none over that time period, and rental rates have gone from $16.00 to $17.52. At the end of the third quarter 2011, there were 33,272 square feet under construction in the Kansas City market. The total stock of Power Center space in Kansas City currently sits at 9,190,917 square feet in 21 centers comprised of 186 buildings. A total of 33,272 square feet of space was under construction at the end of the third quarter 2011. 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 7.0% at the end of third quarter 2011. There was a total of 3,037,949 square feet vacant at that time. The General Retail sector in Kansas City currently has average rental rates of $11.03 per square foot per year. There are 21,977 square feet of space under construction in this sector, with 72,117 square feet having been completed in the third quarter. In all, there are a total of 4,611 buildings with 43,687,668 square feet of General Retail space in Kansas City. Specialty Centers There are currently five Specialty Centers in the Kansas City market, making up 1,733,809 square feet of retail space. In this report the Specialty Center market is comprised of Outlet Center, Airport Retail and Theme/Festival Centers. Source: CoStar Property 2 THE COSTAR RETAIL REPORT 2011 COSTAR GROUP, INC.

Kansas City Retail Market OVERVIEW THIRD QUARTER 2011 KANSAS CITY Specialty Centers in the Kansas City market have experienced positive 5,020 square feet of net absorption in 2011. The vacancy rate currently stands at 8.9%, and rental rates average $8.36 per square foot. Malls Malls recorded net absorption of positive 23,851 square feet in the third quarter 2011. This net absorption number, combined with no new space that was built in the quarter, caused the vacancy rate to go from 6.4% a quarter ago to 6.2% at the end of the third quarter 2011. Rental rates went from $24.72 per square foot to $24.27 per square foot during that time. In this report the Mall market is comprised of 15 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 rose during the second quarter 2011 in terms of dollar volume compared to the first quarter of 2011. In the second quarter, nine retail transactions closed with a total volume of $39,517,250. The nine buildings totaled 413,889 square feet and the average price per square foot equated to $95.48 per square foot. That compares to two transactions totaling $5,995,000 in the first quarter 2011. The total square footage in the first quarter was 76,231 square feet for an average price per square foot of $78.64. Total retail center sales activity in 2011 was up compared to. In the first six months of 2011, the market saw 11 retail sales transactions with a total volume of $45,512,250. The price per square foot averaged $92.86. In the same first six months of Absorption & Deliveries Past 9 Quarters 0.6 0.5 0.4 0.3 0.2 0.1 0.0 (0.1) (0.2) (0.3) (0.4) 0.40 0.54 Source: CoStar Property (0.30) 0.11 Net Absorption 0.09 0.18 0.28 0.15 0.13 0.12 0.14 0.12 0.15 0.08 0.02 0.01, the market posted 10 transactions with a total volume of $30,416,822. The price per square foot averaged $57.15. Cap rates have been higher in 2011, averaging 9.29% compared to the same period in when they averaged 7.63%. One of the largest transactions that has occurred within the last four quarters in the Kansas City market is the sale of Price Chopper in Lenexa. This 76,784-square-foot retail center sold for $12,500,000, or $162.79 per square foot. The property sold on 12/23/, at an 8.35% cap rate. Deliveries 2011 2011 Reports compiled by: John Kneisly CoStar Research Manager and Raven Shaneybrook CoStar Research Associate. 0.41 0.13 2011 2011 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 3

KANSAS CITY THIRD QUARTER 2011 Kansas City Retail Market 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 2011 COSTAR GROUP, INC.

Kansas City Retail Market INVENTORY & DEVELOPMENT THIRD QUARTER 2011 KANSAS CITY 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

KANSAS CITY THIRD QUARTER 2011 Kansas City Retail Market INVENTORY & DEVELOPMENT Historical Deliveries 1982-2011 3.5 3.3 Deliveries Average Delivered SF 3.0 2.5 2.6 2.8 2.6 2.7 2.5 3.1 2.7 2.9 2.7 Millions of SF 2.0 1.5 1.7 1.5 1.9 1.4 1.7 2.0 1.4 1.2 2.1 1.7 1.2 1.0 1.0 0.5 0.6 0.4 0.4 0.7 0.6 0.7 0.4 0.3 0.0 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2011 * Future deliveries based on current under construction buildings. Construction Activity Markets Ranked by Under Construction Square Footage Market Under Construction Inventory Average Bldg Size # Bldgs Total GLA Preleased SF Preleased % All Existing U/C East Jackson County 4 33,272 19,375 58.2% 12,375 8,318 South Johnson County 2 14,640 0 0.0% 20,727 7,320 North of the River 2 7,337 7,337 100.0% 19,275 3,668 Southeast Jackson County 0 0 0 0.0% 16,291 0 Kansas City KS 0 0 0 0.0% 12,377 0 South KC 0 0 0 0.0% 18,197 0 Downtown 0 0 0 0.0% 20,411 0 North Johnson County 0 0 0 0.0% 19,877 0 Midtown 0 0 0 0.0% 10,182 0 Totals 8 55,249 26,712 48.3% 16,136 6,906 Recent Deliveries Leased & Un-Leased SF in Deliveries Since 2007 3.0 Leased Un-Leased 2.5 Millions of SF 2.0 1.5 1.0 0.5 0.0 2007 2008 2011 6 THE COSTAR RETAIL REPORT 2011 COSTAR GROUP, INC.

Kansas City Retail Market INVENTORY & DEVELOPMENT THIRD QUARTER 2011 KANSAS CITY Historical Construction Starts & Deliveries Square Footage Per Quarter Starting and Completing Construction 1.0 0.95 Construction Starts Deliveries 0.9 0.86 0.8 0.7 Millions of SF 0.6 0.5 0.4 0.3 0.2 0.1 0.0 0.55 0.53 0.54 0.36 0.25 0.21 0.21 0.18 0.19 0.18 0.16 0.13 0.13 0.11 0.08 0.09 0.01 0.02 0.13 0.090.08 0.04 0.14 0.13 0.05 0.020.01 0.00 2008 2008 2008 2008 2011 2011 2011 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 12 128,422 93,779 73.0% $0.00 100,751 27,671 50,000 SF - 99,999 SF 2 156,624 156,624 100.0% $0.00 0 156,624 100,000 SF - 249,999 SF 0 0 0 0.0% $0.00 0 0 250,000 SF - 499,999 SF 0 0 0 0.0% $0.00 0 0 >= 500,000 SF 0 0 0 0.0% $0.00 0 0 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 35% 17% Shopping Center Mall 65% 83% Power Center Specialty Center Multi Single Multi Single Millions of Square 0Feet 10 20 30 40 50 2011 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 7

KANSAS CITY THIRD QUARTER 2011 Kansas City Retail Market INVENTORY & DEVELOPMENT 8 THE COSTAR RETAIL REPORT 2011 COSTAR GROUP, INC.

Kansas City Retail Market INVENTORY & DEVELOPMENT THIRD QUARTER 2011 KANSAS CITY 2011 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 9

KANSAS CITY THIRD QUARTER 2011 Kansas City Retail Market FIGURES AT A GLANCE General Retail Market Statistics Third Quarter 2011 YTD Net YTD Under Quoted Market # Blds Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Downtown 364 7,145,242 389,303 389,303 5.4% 2,974 0 0 $13.66 East Jackson County 1,183 7,377,784 789,548 801,798 10.9% 17,162 312 0 $8.07 Kansas City KS 692 5,698,367 293,800 293,800 5.2% 13,617 22,000 0 $12.03 Midtown 534 4,444,055 284,581 286,440 6.4% 52,215 0 0 $13.26 North Johnson County 516 5,487,987 275,699 283,559 5.2% 35,054 0 0 $11.27 North of the River 467 4,555,711 350,233 350,233 7.7% 193,078 172,593 7,337 $11.16 South Johnson County 393 5,261,906 282,892 282,892 5.4% 24,211 0 14,640 $13.71 South KC 260 2,037,398 232,927 232,927 11.4% 79,000 5,770 0 $10.80 Southeast Jackson County 202 1,679,218 116,997 116,997 7.0% (28,466) 1,760 0 $13.99 Totals 4,611 43,687,668 3,015,980 3,037,949 7.0% 388,845 202,435 21,977 $11.03 Mall Market Statistics Third Quarter 2011 YTD Net YTD Under Quoted Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Downtown 0 0 0 0 0.0% 0 0 0 $0.00 East Jackson County 2 1,270,575 22,970 22,970 1.8% 17,300 7,500 0 $0.00 Kansas City KS 2 2,062,462 381,775 381,775 18.5% 23,217 0 0 $23.86 Midtown 1 863,598 6,203 6,203 0.7% 7,613 0 0 $40.00 North Johnson County 2 2,493,230 30,562 30,562 1.2% 24,724 0 0 $12.50 North of the River 3 2,369,990 15,489 165,867 7.0% 10,490 6,940 0 $13.00 South Johnson County 4 2,595,146 80,469 80,469 3.1% 2,666 0 0 $22.52 South KC 0 0 0 0 0.0% 0 0 0 $0.00 Southeast Jackson County 1 407,180 56,372 56,372 13.8% 7,949 0 0 $28.86 Totals 15 12,062,181 593,840 744,218 6.2% 93,959 14,440 0 $24.27 Power Center Market Statistics Third Quarter 2011 YTD Net YTD Under Quoted Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Downtown 0 0 0 0 0.0% 0 0 0 $0.00 East Jackson County 7 2,969,665 140,415 140,415 4.7% 54,880 23,171 33,272 $16.49 Kansas City KS 0 0 0 0 0.0% 0 0 0 $0.00 Midtown 1 291,582 0 0 0.0% 0 0 0 $0.00 North Johnson County 3 1,272,972 60,168 60,168 4.7% 2,240 0 0 $16.02 North of the River 4 1,950,576 140,424 140,424 7.2% 5,795 0 0 $20.16 South Johnson County 3 1,230,056 94,902 94,902 7.7% (33,679) 0 0 $15.87 South KC 3 1,476,066 158,128 158,128 10.7% (1,044) 0 0 $18.43 Southeast Jackson County 0 0 0 0 0.0% 0 0 0 $0.00 Totals 21 9,190,917 594,037 594,037 6.5% 28,192 23,171 33,272 $17.52 Shopping Center Market Statistics Third Quarter 2011 YTD Net YTD Under Quoted Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Downtown 5 794,646 44,203 44,203 5.6% (16,670) 0 0 $16.00 East Jackson County 150 7,265,902 1,045,463 1,055,793 14.5% 44,630 0 0 $9.54 Kansas City KS 44 2,115,979 262,451 262,451 12.4% 56,042 0 0 $8.43 Midtown 16 448,619 72,994 72,994 16.3% 4,498 0 0 $13.26 North Johnson County 125 7,919,561 1,059,366 1,210,883 15.3% 14,427 0 0 $12.67 North of the River 120 7,148,996 843,573 862,573 12.1% (34,274) 45,000 0 $12.77 South Johnson County 122 8,337,952 1,046,831 1,048,061 12.6% 43,503 0 0 $15.32 South KC 51 2,963,048 482,929 620,929 21.0% 42,470 0 0 $10.94 Southeast Jackson County 38 2,051,196 270,186 270,186 13.2% 2,524 0 0 $11.30 Totals 671 39,045,899 5,127,996 5,448,073 14.0% 157,150 45,000 0 $12.18 10 THE COSTAR RETAIL REPORT 2011 COSTAR GROUP, INC.

Kansas City Retail Market FIGURES AT A GLANCE THIRD QUARTER 2011 KANSAS CITY Specialty Center Market Statistics Third Quarter 2011 YTD Net YTD Under Quoted Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Downtown 0 0 0 0 0.0% 0 0 0 $0.00 East Jackson County 0 0 0 0 0.0% 0 0 0 $0.00 Kansas City KS 0 0 0 0 0.0% 0 0 0 $0.00 Midtown 0 0 0 0 0.0% 0 0 0 $0.00 North Johnson County 0 0 0 0 0.0% 0 0 0 $0.00 North of the River 1 50,000 0 0 0.0% 0 0 0 $0.00 South Johnson County 1 234,083 6,750 16,750 7.2% (1,045) 0 0 $8.00 South KC 1 602,186 112,065 112,065 18.6% 0 0 0 $7.85 Southeast Jackson County 2 847,540 25,065 25,065 3.0% 6,065 0 0 $25.71 Totals 5 1,733,809 143,880 153,880 8.9% 5,020 0 0 $8.36 Total Retail Market Statistics Third Quarter 2011 YTD Net YTD Under Quoted Market # Blds Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Downtown 389 7,939,888 433,506 433,506 5.5% (13,696) 0 0 $13.68 East Jackson County 1,526 18,883,926 1,998,396 2,020,976 10.7% 133,972 30,983 33,272 $9.68 Kansas City KS 798 9,876,808 938,026 938,026 9.5% 92,876 22,000 0 $10.55 Midtown 594 6,047,854 363,778 365,637 6.0% 64,326 0 0 $16.04 North Johnson County 864 17,173,750 1,425,795 1,585,172 9.2% 76,445 0 0 $12.61 North of the River 834 16,075,273 1,349,719 1,519,097 9.4% 175,089 224,533 7,337 $12.80 South Johnson County 852 17,659,143 1,511,844 1,523,074 8.6% 35,656 0 14,640 $15.06 South KC 389 7,078,698 986,049 1,124,049 15.9% 120,426 5,770 0 $11.84 Southeast Jackson County 306 4,985,134 468,620 468,620 9.4% (11,928) 1,760 0 $14.04 Totals 6,552 105,720,474 9,475,733 9,978,157 9.4% 673,166 285,046 55,249 $12.52 2011 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 11

KANSAS CITY THIRD QUARTER 2011 Kansas City Retail Market FIGURES AT A GLANCE General Retail Submarket Statistics Third Quarter 2011 YTD Net YTD Under Quoted Market # Blds Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Brookside 22 161,487 23,127 23,127 14.3% (12,374) 0 0 $16.49 CBD 136 4,665,351 274,238 274,238 5.9% 14,882 0 0 $21.80 College Blvd 54 949,396 28,142 28,142 3.0% 44,778 0 0 $16.28 Country Club Plaza 123 872,198 34,024 35,883 4.1% 2,453 0 0 $9.20 Crown Center 34 1,085,301 24,160 24,160 2.2% (2,785) 0 0 $6.00 Downtown Kansas KC KS 140 826,529 65,861 65,861 8.0% (4,113) 0 0 $5.75 East Jackson County 728 4,876,478 558,112 570,362 11.7% (8,654) 0 0 $8.31 Freight House District 120 882,418 84,805 84,805 9.6% (9,123) 0 0 $9.41 I-29 Corridor 99 1,168,949 110,869 110,869 9.5% 86,297 70,357 4,921 $12.51 I-35 Corridor 368 3,386,762 239,364 239,364 7.1% 106,781 102,236 2,416 $10.41 Kansas City KS 552 4,871,838 227,939 227,939 4.7% 17,730 22,000 0 $15.07 Kansas City MO 455 2,501,306 231,436 231,436 9.3% 25,816 312 0 $7.13 Midtown 389 3,410,370 227,430 227,430 6.7% 62,136 0 0 $13.86 Northeast Johnson County 289 2,628,618 133,215 141,075 5.4% 20,241 0 0 $12.29 Northwest Johnson County 227 2,859,369 142,484 142,484 5.0% 14,813 0 0 $10.26 South Johnson County 339 4,312,510 254,750 254,750 5.9% (20,567) 0 14,640 $13.16 South Kansas City MO 170 1,278,872 155,318 155,318 12.1% 42,523 0 0 $10.71 Southeast Jackson County 202 1,679,218 116,997 116,997 7.0% (28,466) 1,760 0 $13.99 Ward Parkway 90 758,526 77,609 77,609 10.2% 36,477 5,770 0 $11.02 West Bottoms 74 512,172 6,100 6,100 1.2% 0 0 0 $11.15 Totals 4,611 43,687,668 3,015,980 3,037,949 7.0% 388,845 202,435 21,977 $11.03 Mall Submarket Statistics Third Quarter 2011 YTD Net YTD Under Quoted Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Brookside 0 0 0 0 0.0% 0 0 0 $0.00 CBD 0 0 0 0 0.0% 0 0 0 $0.00 College Blvd 2 1,439,100 43,290 43,290 3.0% 2,666 0 0 $19.00 Country Club Plaza 1 863,598 6,203 6,203 0.7% 7,613 0 0 $40.00 Crown Center 0 0 0 0 0.0% 0 0 0 $0.00 Downtown Kansas KC KS 0 0 0 0 0.0% 0 0 0 $0.00 East Jackson County 2 1,270,575 22,970 22,970 1.8% 17,300 7,500 0 $0.00 Freight House District 0 0 0 0 0.0% 0 0 0 $0.00 I-29 Corridor 1 758,598 15,489 15,489 2.0% 10,490 6,940 0 $13.00 I-35 Corridor 2 1,611,392 0 150,378 9.3% 0 0 0 $0.00 Kansas City KS 2 2,062,462 381,775 381,775 18.5% 23,217 0 0 $23.86 Kansas City MO 0 0 0 0 0.0% 0 0 0 $0.00 Midtown 0 0 0 0 0.0% 0 0 0 $0.00 Northeast Johnson County 1 734,400 30,000 30,000 4.1% 0 0 0 $12.50 Northwest Johnson County 1 1,758,830 562 562 0.0% 24,724 0 0 $0.00 South Johnson County 2 1,156,046 37,179 37,179 3.2% 0 0 0 $27.00 South Kansas City MO 0 0 0 0 0.0% 0 0 0 $0.00 Southeast Jackson County 1 407,180 56,372 56,372 13.8% 7,949 0 0 $28.86 Ward Parkway 0 0 0 0 0.0% 0 0 0 $0.00 West Bottoms 0 0 0 0 0.0% 0 0 0 $0.00 Totals 15 12,062,181 593,840 744,218 6.2% 93,959 14,440 0 $24.27 12 THE COSTAR RETAIL REPORT 2011 COSTAR GROUP, INC.

Kansas City Retail Market FIGURES AT A GLANCE THIRD QUARTER 2011 KANSAS CITY Power Center Submarket Statistics Third Quarter 2011 YTD Net YTD Under Quoted Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Brookside 0 0 0 0 0.0% 0 0 0 $0.00 CBD 0 0 0 0 0.0% 0 0 0 $0.00 College Blvd 1 243,702 28,740 28,740 11.8% (14,112) 0 0 $15.34 Country Club Plaza 0 0 0 0 0.0% 0 0 0 $0.00 Crown Center 0 0 0 0 0.0% 0 0 0 $0.00 Downtown Kansas KC KS 0 0 0 0 0.0% 0 0 0 $0.00 East Jackson County 7 2,969,665 140,415 140,415 4.7% 54,880 23,171 33,272 $16.49 Freight House District 0 0 0 0 0.0% 0 0 0 $0.00 I-29 Corridor 3 1,455,931 67,856 67,856 4.7% 12,266 0 0 $20.39 I-35 Corridor 1 494,645 72,568 72,568 14.7% (6,471) 0 0 $19.00 Kansas City KS 0 0 0 0 0.0% 0 0 0 $0.00 Kansas City MO 0 0 0 0 0.0% 0 0 0 $0.00 Midtown 1 291,582 0 0 0.0% 0 0 0 $0.00 Northeast Johnson County 1 466,545 5,530 5,530 1.2% (1,415) 0 0 $0.00 Northwest Johnson County 2 806,427 54,638 54,638 6.8% 3,655 0 0 $16.02 South Johnson County 2 986,354 66,162 66,162 6.7% (19,567) 0 0 $16.00 South Kansas City MO 2 728,218 33,666 33,666 4.6% (1,044) 0 0 $15.86 Southeast Jackson County 0 0 0 0 0.0% 0 0 0 $0.00 Ward Parkway 1 747,848 124,462 124,462 16.6% 0 0 0 $19.03 West Bottoms 0 0 0 0 0.0% 0 0 0 $0.00 Totals 21 9,190,917 594,037 594,037 6.5% 28,192 23,171 33,272 $17.52 Shopping Center Submarket Statistics Third Quarter 2011 YTD Net YTD Under Quoted Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Brookside 1 9,680 0 0 0.0% 0 0 0 $0.00 CBD 3 526,044 14,203 14,203 2.7% 4,381 0 0 $0.00 College Blvd 23 1,795,460 150,891 150,891 8.4% (14,703) 0 0 $13.82 Country Club Plaza 3 43,139 1,025 1,025 2.4% (1,025) 0 0 $0.00 Crown Center 1 260,000 30,000 30,000 11.5% (21,051) 0 0 $16.00 Downtown Kansas KC KS 2 16,183 0 0 0.0% 0 0 0 $0.00 East Jackson County 137 6,382,436 932,954 943,284 14.8% 35,508 0 0 $9.62 Freight House District 0 0 0 0 0.0% 0 0 0 $0.00 I-29 Corridor 30 1,602,828 232,463 251,463 15.7% (16,888) 0 0 $14.49 I-35 Corridor 90 5,546,168 611,110 611,110 11.0% (17,386) 45,000 0 $11.68 Kansas City KS 42 2,099,796 262,451 262,451 12.5% 56,042 0 0 $8.43 Kansas City MO 13 883,466 112,509 112,509 12.7% 9,122 0 0 $8.69 Midtown 12 395,800 71,969 71,969 18.2% 5,523 0 0 $13.26 Northeast Johnson County 63 4,148,777 574,947 581,110 14.0% (17,667) 0 0 $14.02 Northwest Johnson County 62 3,770,784 484,419 629,773 16.7% 32,094 0 0 $11.61 South Johnson County 99 6,542,492 895,940 897,170 13.7% 58,206 0 0 $15.61 South Kansas City MO 35 2,529,140 459,122 597,122 23.6% 41,053 0 0 $10.50 Southeast Jackson County 38 2,051,196 270,186 270,186 13.2% 2,524 0 0 $11.30 Ward Parkway 16 433,908 23,807 23,807 5.5% 1,417 0 0 $15.42 West Bottoms 1 8,602 0 0 0.0% 0 0 0 $0.00 Totals 671 39,045,899 5,127,996 5,448,073 14.0% 157,150 45,000 0 $12.18 2011 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 13

KANSAS CITY THIRD QUARTER 2011 Kansas City Retail Market FIGURES AT A GLANCE Specialty Center Submarket Statistics Third Quarter 2011 YTD Net YTD Under Quoted Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Brookside 0 0 0 0 0.0% 0 0 0 $0.00 CBD 0 0 0 0 0.0% 0 0 0 $0.00 College Blvd 0 0 0 0 0.0% 0 0 0 $0.00 Country Club Plaza 0 0 0 0 0.0% 0 0 0 $0.00 Crown Center 0 0 0 0 0.0% 0 0 0 $0.00 Downtown Kansas KC KS 0 0 0 0 0.0% 0 0 0 $0.00 East Jackson County 0 0 0 0 0.0% 0 0 0 $0.00 Freight House District 0 0 0 0 0.0% 0 0 0 $0.00 I-29 Corridor 1 50,000 0 0 0.0% 0 0 0 $0.00 I-35 Corridor 0 0 0 0 0.0% 0 0 0 $0.00 Kansas City KS 0 0 0 0 0.0% 0 0 0 $0.00 Kansas City MO 0 0 0 0 0.0% 0 0 0 $0.00 Midtown 0 0 0 0 0.0% 0 0 0 $0.00 Northeast Johnson County 0 0 0 0 0.0% 0 0 0 $0.00 Northwest Johnson County 0 0 0 0 0.0% 0 0 0 $0.00 South Johnson County 1 234,083 6,750 16,750 7.2% (1,045) 0 0 $8.00 South Kansas City MO 1 602,186 112,065 112,065 18.6% 0 0 0 $7.85 Southeast Jackson County 2 847,540 25,065 25,065 3.0% 6,065 0 0 $25.71 Ward Parkway 0 0 0 0 0.0% 0 0 0 $0.00 West Bottoms 0 0 0 0 0.0% 0 0 0 $0.00 Totals 5 1,733,809 143,880 153,880 8.9% 5,020 0 0 $8.36 Total Retail Submarket Statistics Third Quarter 2011 YTD Net YTD Under Quoted Market # Blds Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Brookside 23 171,167 23,127 23,127 13.5% (12,374) 0 0 $16.49 CBD 159 5,191,395 288,441 288,441 5.6% 19,263 0 0 $21.80 College Blvd 171 4,427,658 251,063 251,063 5.7% 18,629 0 0 $14.55 Country Club Plaza 158 1,778,935 41,252 43,111 2.4% 9,041 0 0 $22.31 Crown Center 35 1,345,301 54,160 54,160 4.0% (23,836) 0 0 $6.60 Downtown Kansas KC KS 142 842,712 65,861 65,861 7.8% (4,113) 0 0 $5.75 East Jackson County 1,049 15,499,154 1,654,451 1,677,031 10.8% 99,034 30,671 33,272 $9.93 Freight House District 120 882,418 84,805 84,805 9.6% (9,123) 0 0 $9.41 I-29 Corridor 246 5,036,306 426,677 445,677 8.8% 92,165 77,297 4,921 $14.72 I-35 Corridor 588 11,038,967 923,042 1,073,420 9.7% 82,924 147,236 2,416 $11.41 Kansas City KS 656 9,034,096 872,165 872,165 9.7% 96,989 22,000 0 $10.84 Kansas City MO 477 3,384,772 343,945 343,945 10.2% 34,938 312 0 $7.82 Midtown 413 4,097,752 299,399 299,399 7.3% 67,659 0 0 $13.65 Northeast Johnson County 468 7,978,340 743,692 757,715 9.5% 1,159 0 0 $13.68 Northwest Johnson County 396 9,195,410 682,103 827,457 9.0% 75,286 0 0 $11.76 South Johnson County 681 13,231,485 1,260,781 1,272,011 9.6% 17,027 0 14,640 $15.17 South Kansas City MO 274 5,138,416 760,171 898,171 17.5% 82,532 0 0 $10.29 Southeast Jackson County 306 4,985,134 468,620 468,620 9.4% (11,928) 1,760 0 $14.04 Ward Parkway 115 1,940,282 225,878 225,878 11.6% 37,894 5,770 0 $16.99 West Bottoms 75 520,774 6,100 6,100 1.2% 0 0 0 $11.15 Totals 6,552 105,720,474 9,475,733 9,978,157 9.4% 673,166 285,046 55,249 $12.52 14 THE COSTAR RETAIL REPORT 2011 COSTAR GROUP, INC.

Kansas City Retail Market FIGURES AT A GLANCE THIRD QUARTER 2011 KANSAS CITY General Retail Market Statistics Third Quarter 2011 Net Deliveries UC Inventory Period # Blds Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates 2011 4,611 43,687,668 3,015,980 3,037,949 7.0% 152,135 2 72,117 4 21,977 $11.03 2011 4,609 43,615,551 3,092,271 3,117,967 7.1% 153,923 1 312 6 94,094 $11.03 2011 4,609 43,621,239 3,253,232 3,277,578 7.5% 82,787 5 130,006 4 77,350 $10.98 4,604 43,491,233 3,201,813 3,230,359 7.4% 16,651 2 77,440 7 200,675 $11.15 4,603 43,424,355 3,150,227 3,180,132 7.3% 53,699 0 0 6 198,977 $11.40 4,603 43,424,355 3,203,926 3,233,831 7.4% 91,141 2 7,472 3 163,707 $11.53 4,601 43,416,883 3,287,595 3,317,500 7.6% (133,909) 3 8,006 3 83,152 $11.60 4,598 43,408,877 3,124,780 3,175,585 7.3% (67,074) 1 12,900 5 15,478 $11.47 4,598 43,437,977 3,081,701 3,137,611 7.2% (50,349) 5 56,660 4 20,906 $11.46 4,593 43,381,317 2,949,892 3,030,602 7.0% 225,193 4 79,756 6 69,560 $12.08 4,589 43,301,561 3,050,329 3,176,039 7.3% (45,116) 9 81,019 9 136,416 $12.34 2008 4,581 43,226,836 2,975,488 3,056,198 7.1% 69,267 7 65,515 13 160,775 $12.16 2008 4,575 43,273,353 3,083,659 3,171,982 7.3% (82,989) 4 17,030 16 167,544 $12.78 2008 4,573 43,439,840 3,171,657 3,255,480 7.5% 106,288 8 309,033 12 100,567 $12.25 2008 4,566 43,134,842 2,975,681 3,056,770 7.1% 221,795 8 251,645 15 349,771 $11.51 2007 4,558 42,883,197 2,951,356 3,026,920 7.1% 698,054 21 283,395 16 545,678 $12.01 Quoted Mall Market Statistics Third Quarter 2011 Net Deliveries Period # Ctrs Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates 2011 15 12,062,181 593,840 744,218 6.2% 23,851 0 0 0 0 $24.27 2011 15 12,062,181 617,691 768,069 6.4% 40,857 1 6,940 0 0 $24.72 2011 15 12,055,241 651,608 801,986 6.7% 29,251 1 7,500 1 6,940 $25.00 15 12,047,741 673,359 823,737 6.8% 68,581 0 0 2 14,440 $28.32 15 12,047,741 892,318 892,318 7.4% 33,499 0 0 1 7,500 $28.19 15 12,047,741 925,817 925,817 7.7% (18,109) 0 0 0 0 $27.61 15 12,047,741 907,708 907,708 7.5% 20,952 1 30,041 0 0 $27.20 15 12,017,700 898,619 898,619 7.5% 103,009 1 80,000 1 30,041 $25.03 15 11,937,700 913,928 921,628 7.7% 267,044 7 380,863 1 80,000 $22.39 15 11,556,837 800,109 807,809 7.0% (1,725) 0 0 8 460,863 $19.63 15 11,556,837 770,367 806,084 7.0% (16,210) 1 7,985 7 380,863 $20.13 2008 15 11,548,852 744,835 781,889 6.8% (75,614) 2 102,955 8 388,848 $19.85 2008 14 11,445,897 566,266 603,320 5.3% (20,798) 0 0 10 491,803 $19.22 2008 14 11,445,897 578,972 582,522 5.1% 3,876 2 18,332 10 491,803 $18.58 2008 13 11,427,565 564,516 568,066 5.0% (466) 0 0 12 510,135 $20.47 2007 13 11,427,565 564,050 567,600 5.0% 142,476 2 28,986 10 407,180 $20.44 UC Inventory Quoted Power Center Market Statistics Third Quarter 2011 Net Deliveries UC Inventory Period # Ctrs Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates 2011 21 9,190,917 594,037 594,037 6.5% 62,792 1 13,976 4 33,272 $17.52 2011 21 9,176,941 642,853 642,853 7.0% (40,428) 1 6,195 5 47,248 $16.93 2011 21 9,170,746 567,730 596,230 6.5% 5,828 1 3,000 6 53,443 $16.65 21 9,167,746 570,558 599,058 6.5% 14,287 0 0 7 56,443 $16.16 21 9,167,746 584,845 613,345 6.7% 176,404 1 123,865 6 50,248 $16.00 21 9,043,881 637,384 665,884 7.4% 49,749 0 0 7 174,113 $16.05 21 9,043,881 687,133 715,633 7.9% 6,868 2 19,114 7 174,113 $16.21 21 9,024,767 675,217 703,387 7.8% 2,434 0 0 9 193,227 $15.78 21 9,024,767 676,183 705,821 7.8% (37,577) 2 13,517 8 69,362 $15.92 21 9,011,250 625,089 654,727 7.3% (93,861) 0 0 10 82,879 $14.49 21 9,011,250 463,382 560,866 6.2% (21,873) 0 0 10 82,879 $15.74 2008 21 9,011,250 441,179 538,993 6.0% 36,553 2 132,528 8 69,362 $16.44 2008 21 8,878,722 413,050 443,018 5.0% 542,964 8 637,212 10 201,890 $16.11 2008 21 8,241,510 313,204 348,770 4.2% 536,610 8 557,403 18 839,102 $16.16 2008 19 7,684,107 291,761 327,977 4.3% 33,953 1 2,650 26 1,396,505 $18.67 2007 19 7,681,457 325,464 359,280 4.7% 326,334 2 205,480 22 1,170,322 $19.11 Quoted 2011 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 15

KANSAS CITY THIRD QUARTER 2011 Kansas City Retail Market FIGURES AT A GLANCE Shopping Center Market Statistics Third Quarter 2011 Net Deliveries UC Inventory Period # Ctrs Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates 2011 671 39,045,899 5,127,996 5,448,073 14.0% 169,742 1 45,000 0 0 $12.18 2011 671 39,000,899 5,279,526 5,572,815 14.3% (4,127) 0 0 1 45,000 $12.16 2011 671 39,000,899 5,323,171 5,568,688 14.3% (8,465) 0 0 1 45,000 $12.00 671 39,000,899 5,326,114 5,560,223 14.3% 16,188 1 4,249 0 0 $12.03 671 38,996,650 5,338,053 5,572,162 14.3% (114,322) 1 6,124 1 4,249 $12.17 671 38,990,526 5,213,159 5,451,716 14.0% 157,277 1 14,050 2 10,373 $12.31 670 38,976,476 5,349,032 5,594,943 14.4% 192,350 2 124,022 2 20,174 $12.41 669 38,852,454 5,433,603 5,663,271 14.6% (328,102) 1 14,820 3 138,072 $12.50 669 38,837,634 5,074,055 5,320,349 13.7% 234,802 7 88,287 2 126,930 $13.11 668 38,749,347 5,177,106 5,466,864 14.1% (20,833) 6 130,017 9 215,217 $12.93 668 38,619,330 5,078,929 5,316,014 13.8% (48,916) 3 66,860 13 231,124 $13.23 2008 667 38,552,470 4,972,581 5,200,238 13.5% (38,321) 10 230,684 11 235,464 $13.21 2008 662 38,321,786 4,730,943 4,931,233 12.9% 283,612 8 209,039 16 394,097 $13.34 2008 660 38,112,747 4,814,697 5,005,806 13.1% (153,121) 4 65,150 20 510,458 $13.28 2008 658 38,047,597 4,552,404 4,787,535 12.6% (249,012) 12 95,259 17 383,852 $13.30 2007 658 37,952,338 4,201,993 4,443,264 11.7% 624,027 45 721,520 22 320,514 $12.86 Quoted Specialty Center Market Statistics Third Quarter 2011 Net Deliveries Period # Ctrs Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates 2011 5 1,733,809 143,880 153,880 8.9% 0 0 0 0 0 $8.36 2011 5 1,733,809 143,880 153,880 8.9% (685) 0 0 0 0 $8.36 2011 5 1,733,809 143,195 153,195 8.8% 5,705 0 0 0 0 $8.16 5 1,733,809 148,900 158,900 9.2% 0 0 0 0 0 $7.34 5 1,733,809 148,900 158,900 9.2% 0 0 0 0 0 $7.34 5 1,733,809 148,900 158,900 9.2% 2,479 0 0 0 0 $7.34 5 1,733,809 151,379 161,379 9.3% 0 0 0 0 0 $7.36 5 1,733,809 151,379 161,379 9.3% (6,378) 0 0 0 0 $7.14 5 1,733,809 145,001 155,001 8.9% (16,500) 0 0 0 0 $6.86 5 1,733,809 138,501 138,501 8.0% 10 0 0 0 0 $6.68 5 1,733,809 138,511 138,511 8.0% 0 0 0 0 0 $6.68 2008 5 1,733,809 128,511 138,511 8.0% (1,565) 0 0 0 0 $6.68 2008 5 1,733,809 126,946 136,946 7.9% 51,770 0 0 0 0 $6.84 2008 5 1,733,809 178,716 188,716 10.9% 2,936 0 0 0 0 $6.84 2008 5 1,733,809 181,652 191,652 11.1% 15,600 1 12,900 0 0 $6.84 2007 5 1,720,909 184,352 194,352 11.3% 36,361 1 5,903 1 12,900 $7.80 UC Inventory Quoted Total Retail Market Statistics Third Quarter 2011 Net Deliveries UC Inventory Period # Blds Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates 2011 6,552 105,720,474 9,475,733 9,978,157 9.4% 408,520 4 131,093 8 55,249 $12.52 2011 6,548 105,589,381 9,776,221 10,255,584 9.7% 149,540 3 13,447 12 186,342 $12.53 2011 6,546 105,581,934 9,938,936 10,397,677 9.8% 115,106 7 140,506 12 182,733 $12.39 6,539 105,441,428 9,920,744 10,372,277 9.8% 115,707 3 81,689 16 271,558 $12.57 6,537 105,370,301 10,114,343 10,416,857 9.9% 149,280 2 129,989 14 260,974 $12.82 6,535 105,240,312 10,129,186 10,436,148 9.9% 282,537 3 21,522 12 348,193 $12.97 6,532 105,218,790 10,382,847 10,697,163 10.2% 86,261 8 181,183 12 277,439 $13.00 6,524 105,037,607 10,283,598 10,602,241 10.1% (296,111) 3 107,720 18 376,818 $12.92 6,522 104,971,887 9,890,868 10,240,410 9.8% 397,420 21 539,327 15 297,198 $13.13 6,501 104,432,560 9,690,697 10,098,503 9.7% 108,784 10 209,773 33 828,519 $12.92 6,491 104,222,787 9,501,518 9,997,514 9.6% (132,115) 13 155,864 39 831,282 $13.25 2008 6,479 104,073,217 9,262,594 9,715,829 9.3% (9,680) 21 531,682 40 854,449 $13.20 2008 6,459 103,653,567 8,920,864 9,286,499 9.0% 774,559 20 863,281 52 1,255,334 $13.30 2008 6,441 102,973,803 9,057,246 9,381,294 9.1% 496,589 22 949,918 60 1,941,930 $13.15 2008 6,420 102,027,920 8,566,014 8,932,000 8.8% 21,870 22 362,454 70 2,640,263 $13.06 2007 6,398 101,665,466 8,227,215 8,591,416 8.5% 1,827,252 71 1,245,284 71 2,456,594 $13.00 Quoted 16 THE COSTAR RETAIL REPORT 2011 COSTAR GROUP, INC.

Kansas City Retail Market LEASING ACTIVITY THIRD QUARTER 2011 KANSAS CITY Leasing Highlights in Select CoStar Markets Color Coded by Rate 2011 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 17

KANSAS CITY THIRD QUARTER 2011 Kansas City Retail Market 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 $6.00 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 2011 2011 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 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 0.2 0.2 0.2 0.1 0.18 Mall Power Center Specialty Center Millions of Square 0Feet 10 20 30 40 50 Millions 0.1 0.1 0.1 0.1 0.0 0.0 0.0 0.05 0.00 0.00 0.00 0.00 2011 2012 2012 2012 2012 2013 * Includes Under Construction Spaces 18 THE COSTAR RETAIL REPORT 2011 COSTAR GROUP, INC.

Kansas City Retail Market LEASING ACTIVITY THIRD QUARTER 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 1 Crown Center Shops Crown Center 100,000 1st Merlin Entertainments Group Colliers International Kessinger/Hunter & Company, L.C. 2 9510 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 12035 Metcalf Ave South Johnson County 30,010 2nd Buy Buy Baby N/A LANE4 Property Group 5 Crown Center Shops Crown Center 30,000 2nd Legoland Discovery Center Colliers International Kessinger/Hunter & Company, L.C. 6 1110 NW Woods Chapel Rd East Jackson County 28,668 1st Just for Cakes N/A Colliers International 7 18900 E Valley View Pky East Jackson County 28,500 3rd N/A N/A CEAH Realtors 8 The Pavillions At Hartman Heritage Center East Jackson County 28,470 1st Buy Buy Baby Legend Retail Group LaSala-Sonnenberg Commercial Realty 9 Marketplace Shopping Center East Jackson County 25,070 2nd Petco N/A Phillips Edison & Company 10 875 S Parker St South Johnson County 22,726 1st N/A N/A Direct Deal 11 75th & Metcalf Northeast Johnson County 22,501 2nd N/A N/A The R.H. Johnson Company 12 Valencia Retail Country Club Plaza 22,000 3rd H&M N/A Highwoods Properties, Inc 13 John s Apple Market South Kansas City MO 20,300 2nd N/A N/A The R.H. Johnson Company 14 Center 63 South East Jackson County 16,258 2nd Save-A-Lot N/A Kessinger/Hunter & Company, L.C. 15 3520 S Noland Rd East Jackson County 15,637 1st Social Security Administration CB Richard Ellis Realty Executives of Kansas City 16 13907 E Highway 40 East Jackson County 15,155 2nd N/A N/A National Retail Properties, Inc. 17 One Nineteen South Johnson County 15,000 1st Trader Joes N/A N/A 18 18701 E 39th St East Jackson County 13,800 2nd Kansas Sampler N/A Velocity Retail Group 19 875 S Parker St South Johnson County 12,642 1st Antique Mall N/A Direct Deal 20 Trailridge Shopping Center Northwest Johnson County 12,515 3rd New City Church Direct Deal Varnum-Armstrong-Deeter, L.L.C. 21 12061 Metcalf Ave* South Johnson County 12,500 3rd Old Navy N/A Block Real Estate Services, LLC 22 947 Minnesota Ave Downtown Kansas KC KS 12,200 2nd Thrift Store Direct Deal RED Brokerage LLC 23 Dulux Paint Center South Kansas City MO 12,000 1st Aaron s Rentals Conway Partnership Dembs-Roth Group 24 Home Furnishing Center Northwest Johnson County 10,886 3rd KC Shooting Sports GS Bates Realty Goehausen & Company 25 Landing Mall Kansas City MO 10,448 1st Smart Pawn Direct Deal Block & Company, Inc. 26 Adams Dairy Landing East Jackson County 10,400 1st Ulta N/A RED Brokerage LLC 27 428 NW Englewood Rd I-35 Corridor 10,000 3rd N/A N/A Colliers International 28 Olathe Station Shopping Center South Johnson County 9,965 1st Leaping Lizards Realty Executives of Kansas City Kessinger/Hunter & Company, L.C. 29 3120 Troost Ave Midtown 9,500 2nd Connections to Success, Inc. Direct Deal Greg Patterson & Associates, Inc. 30 Valencia Retail* Country Club Plaza 9,413 1st Financial Councelors INC N/A Kessinger/Hunter & Company, L.C. 31 101 NE 91st St* I-35 Corridor 9,398 1st Complete Home Concepts N/A Kessinger/Hunter & Company, L.C. 32 13013 Shawnee Mission Pky* Northwest Johnson County 9,210 3rd Sherwin-Williams The R.H. Johnson Company Kemper Dumay Real Estate.,LLC 33 Quivira Crossing South Johnson County 9,200 1st Sports Cave N/A Kessinger/Hunter & Company, L.C. 34 Country Club Shops East Jackson County 8,625 3rd Labor Ready Victor Ross & Co Realtors Gilchrist & Associates 35 15405 S Rogers Rd South Johnson County 8,516 1st Church of the Rock N/A Coldwell Banker Commercial Fishman 36 Adams Dairy Landing East Jackson County 8,007 3rd Charming Charlie N/A RED Brokerage LLC 37 520 NE Barry Rd I-35 Corridor 8,000 2nd Dollar Tree N/A MD Realty 38 7933 Marty Ln Northeast Johnson County 7,860 1st CVS Caremark N/A The R.H. Johnson Company 39 Zona Rosa Shopping Center I-29 Corridor 6,940 1st Buffalo Wild Wings Colliers International Copaken Brooks 40 Southridge Shopping Center East Jackson County 6,825 1st Petland N/A Kessinger/Hunter & Company, L.C. * Renewal 2011 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 19

KANSAS CITY THIRD QUARTER 2011 Kansas City Retail Market SALES ACTIVITY The Optimist Sales Index Average of Two Highest Price/SF's and Two Lowest Cap Rates 12.0% Cap Rate Price/SF $400 10.0% $350 Cap Rate Percentage 8.0% 6.0% 4.0% $300 $250 $200 $150 $100 Dollars/SF 2.0% $50 0.0% 2008 2008 2011 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 July - June 2011 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 40 336,758 $ 54,654,489 $ 162.30 8.55% 25K-99K SF 16 739,548 $ 70,756,000 $ 95.67 9.59% 100K-249K SF 3 533,096 $ 27,310,000 $ 51.23 10.84% $0 2008 2008 2011 $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 $190 10.0% 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% $30 2008 2008 2008 2008 2011 2011 3.0% 2008 2008 2008 2008 2011 2011 Source: CoStar COMPS Source: CoStar COMPS 20 THE COSTAR RETAIL REPORT 2011 COSTAR GROUP, INC.

Kansas City Retail Market SALES ACTIVITY THIRD QUARTER 2011 KANSAS CITY 2011 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 21