Oklahoma City 2012 Year-End Office Market Summary

Oklahoma City Year-End Office Market Summary

TABLE OF CONTENTS Office Market Summary 1 Central Business District Submarket 2 3 Northwest Submarket 4 6 North Submarket 7 9 Midtown Submarket 10 11 Medical Office Submarket 11 West Submarket 12 13 Suburban Submarket 13 Office Sales Back Cover 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 Year-End Office Market Summary Despite an uptick in the second half of the year, the Oklahoma City Office Market ended with a drop in its vacancy rate from 16.4% to 16.2%. Perhaps what is most impressive is the market s stability. Despite 500,000 square feet of space hitting the market in from Devon s phased relocation to its new downtown corporate headquarters, the market seemed to just shrug that off with solid absorption of that vacancy and another strong performance by the Northwest submarket where the overall vacancy rate is now under 1. In fact, the Central Business District recorded negative absorption of only 91,000 square feet during the year. Most impressively, Class A vacancies in the CBD fell from 8% to 4%. That low vacancy should lead to at least two new small Class A redevelopments in the CBD in the coming year or two at the long vacant Century Center and the old Journal Record Building which has been vacant since the bombing of the Alfred P. Murrah Federal Building in 1995. In fact, the Century Center has recently announced that the Oklahoma Publishing Company (OPUBCO) will anchor approximately 65,000 square feet in its redevelopment. Those two projects could add approximately 200,000 square feet of much needed premium office space to the CBD. Other new projects are rumored, but not yet confirmed. Despite improvement in its better buildings the Central Business District experienced an increase in its vacancy rate from 22.8% to 24.6% during. Offsetting the Devon vacancy will certainly be an ongoing challenge for downtown landlords, as the remaining Devon space is located in Class B and Class C buildings. While the downtown market was admirably fighting through the task of replacing its largest user of leased space, the suburban markets continued the stable improvement of the past 3 years. Although it should be noted that the second half of the year saw negative absorption in all submarkets except the Northwest, which once again retained its position as the market s strongest with only a 7.7% vacancy rate. Class A vacancy in the suburbs is virtually non-existent with the vacancy rate for better buildings falling to just 4.2%. Correspondingly, Class A rental rates rose from $20.85 to $21.46 per square foot during the year. The suburban markets are not without their challenges in the coming year. With increasing rental rates and such low vacancy rates one could normally expect construction of new projects to ramp up, but no new space is currently under construction. The biggest reason for that seems to be developers uncertainty regarding Chesapeake Energy s space needs. Chesapeake has been the suburban markets best friend over the past several years by acquiring several hundred thousand square feet of space either by purchase of entire buildings or the leasing of significant blocks of space. With its disposition of several billion dollars in assets, Chesapeake s employee count is shrinking and with it, it s appetite for space. Several buildings that were already under construction on its main campus at NW 63rd and Western are still being completed which will further reduce the company s need for off-campus space. How well the market absorbs that off-campus space will be the true test of the suburban markets strength in the next few years. Another significant move that will occur in 2013 will be American Fidelity s relocation from its longtime home at 2000 Classen Center to the OPUBCO building on Broadway Extension and Britton Road. That move will effectively create an approximately 300,000 square foot hole in the Midtown market which is comprised of older Class B and C properties. The OPUBCO building was never tracked in our report because it was an owner-occupied building. For the local market to perform as well as it did in is a testament to the city s strong local economy reflected in the country s lowest unemployment rate of only 4.5 %. The city also ranks at or near the top of all US cities in terms of personal income and job growth. Much of the challenge facing the local office market is due to the financial strength of local companies relocating to more modern facilities, but there is also the possibility of some companies reducing their space needs. However, we see more positive than negative going forward and we are very optimistic about the prospects for the local office market. OKC Total Office Market Vacancy 35% Market Vacancy CBD Vacancy Suburban Vacancy 3 25% 2 15% 1 5% '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 OKC Total Office Market Inventory (millions of square feet) 20 Occupied SF 15 10 5 0 '03 '04 '05 '06 '07 Vacant SF '08 '09 '10 '11 '12 OKC OFFICE MARKET RENTAL RATES $20.00 Northwest North Suburban CBD Midtown West $15.00 $10.00 OKC TOTAL OFFICE MARKET ABSORPTION 200000 150000 100000 50000 0-50000 -100000-150000 -200000 Year End OKC Office Market Totals RSF 14,986,290 Vacant SF 2,433,308 Vacant % 16.2% Rate $16.09 1

Year-End Oklahoma City Office Market Summary Central Business District Submarket 25% 2 HISTORICAL CBD VACANCY Year-End CENTRAL BUSINESS DISTRICT REVIEW Aggregate vacancy rates increased from 22.8% to 24.6% 15% Class A vacancy decreased from 8. to 4. 1 5% Class B vacancy increased from 14.9% to 22.7% Class C vacancy remained flat at 51.7% Aggregate rental rates increased from $15.28 per SF to $15.49 per SF HISTORICAL CBD RENTAL RATES BY CLASS $19.00 Class A Class B Class C Class A rates increased from $18.02 per SF to $18.36 per SF $17.00 $15.00 $13.00 $11.00 Class B rates increased from $14.56 per SF to $14.74 per SF Class C rates increased from $13.03 per SF to $13.13 per SF The CBD experienced negative absorption of 91,000 SF during CENTRAL BUSINESS DISTRICT $9.00 10 8 6 4 2 CBD OCCUPANCY BY CLASS Class A Class B Class C 2013 CENTRAL BUSINESS DISTRICT FORECAST Vacancy rates will continue to increase as more Devon space hits the market in 2013. HISTORICAL CBD ABSORPTION 150000 120000 90000 60000 30000 0-30000 -60000-90000 -120000 2 Downtown Oklahoma City

Year-End 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 14,741 15% $15.00 12% 100 Park Ave 101 Park Avenue Building 1936 14 197,042 56,603 29% $14.00 16.34% 101 Park Ave. 20 N. Broadway 1981 19 307,388 0 $16.00 2 20 N Broadway Bank of Oklahoma Plaza 1972 16 233,808 24,509 1 $14.50 2 201 Robert S. Kerr Chase Tower 1971 36 514,317 210,363 41% $14.50 15% 100 N. Broadway City Place 1931/85 33 251,449 70,715 28% $14.50 14% 204 N. Robinson Corporate Tower 1980 14 277,849 11,412 4% $17.00 17.59% 101 N. Robinson Court Plaza 1923/79 10 78,381 38,055 49% $11.00 14% 228 Robert S. Kerr Dowell Center 1926 20 205,000 205,000 10 $14.00 15% 134 Robert S. Kerr First National Center 1931 32 972,267 478,027 49% $13.00 16.5 120 N. Robinson Hightower Building 1929 10 107,152 21,371 2 $15.00 15% 105 N. Hudson Leadership Square 1984 21 735,514 28,920 4% $18.00 2 211 N. Robinson Oklahoma Tower 1982 31 568,960 38,556 7% $19.00 2 210 Park Ave. One North Hudson 1927 11 73,000 0 $12.00 12% 401 W. Sheridan Robinson Plaza 1992 10 195,702 30,000 15% $14.00 55 N. Robinson Robinson Renaissance 1927/88 12 174,840 39,382 23% $13.50 25% 119 N. Robinson Sonic Building 2003 4 100,654 1,278 1% $24.50 8% 300 Johnny Bench Drive The Reserve 1922/97 4 71,616 0 $16.00 2 226 Dean A. McGee Avenue 5,164,691 1,268,932 24.6% $15.49 Central Business District 3

Year-End Oklahoma City Office Market Summary NORTHWEST Submarket 15% 12% HISTORICAL NORTHWEST VACANCY Year-End Northwest submarket REVIEW Aggregate vacancy rates decreased from 9.9% to 7.7% 9% Class A vacancy decreased from 8.9% to 4.8% 6% 3% Class B vacancy decreased from 10.1% to 6. Class C vacancy increased from 10.9% to 15.8% Aggregate rental rates increased from $16.78 per SF to $17.20 per SF HISTORICAL NORTHWEST RENTAL RATES BY CLASS $25.00 Class A Class B Class C Class A rental rates increased from $20.68 per SF to $21.33 per SF $20.00 Class B rental rates increased from $15.95 per SF to $16.35 per SF Class C rental rates increased from $13.43 per SF to $13.52 per SF $15.00 $10.00 The Northwest Oklahoma City submarket experienced positive absorption of 106,000 SF during. 2013 northwest submarket FORECAST Northwest NORTHWEST OCCUPANCY BY CLASS 10 8 6 4 Vacancy rates should continue to drop as this submarket remains the market s strongest. Quoted rates will increase as landlords enjoy a healthy market with no new construction underway. 2 Class A Class B Class C HISTORICAL NORTHWEST ABSORPTION 250000 200000 150000 100000 50000 0-50000 -100000-150000 4 The Caliber Center

Year-End Oklahoma City Office Market Summary NORTHWEST Submarket Northwest Year Built Floors RSF Vacant SF Vacant % Rate CAF 2525 Expressway 1974 6 62,410 9,968 16% $13.00 15% 2525 Northwest Expressway 4100 Perimeter Center 1982 3 47,317 6,198 13% $13.00 12% 4100 Perimeter Center Dr. 4101 Perimeter Center 1982 3 47,317 4,405 9% $13.00 12% 4101 Perimeter Center Dr. 4141 Northwest Expressway 1982 3 46,464 0 $14.00 16% 4141 Northwest Expressway 4200 Perimeter Center 1982 2 61,327 3,432 6% $13.00 15% 4200 Perimeter Center Dr. 4700 Gaillardia 2007 2 42,970 0 $22.00 15% 4700 Gaillardia Parkway 4727 Gaillardia 2 37,624 0 $22.00 15% 4727 Gaillardia Parkway 4747 Gaillardia 2 26,016 0 $22.00 15% 4747 Gaillardia Parkway 4801 Gaillardia 2000 3 74,432 1,348 2% $24.00 18.4% 4801 Gaillardia Parkway 4811 Gaillardia 3 41,450 3,873 9% $21.00 15% 4811 Gaillardia Parkway 5100 Brookline 1974 10 107,496 1,489 1% $16.00 15% 5100 Brookline 5909 NW 1982 7 101,146 15,599 15% $14.50 15% 5909 Northwest Expressway AAA Operations Center 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 $16.00 15% 3501-3503 N.W. 63rd Avaya Building 1998 1 57,000 0 $20.00 14400 Hertz Quail Springs Parkway Bradley Square 1984 1 30,000 1,000 3% $13.50 2932 N.W. 122nd Brookline Offices 1972 1 40,009 9,162 23% $12.00 6051 N. Brookline Caliber Park One & Two 2007 2 81,520 0 $21.00 17.2% 14201-14301 Caliber Drive Center 3000 1972 2 115,800 28,950 25% $12.00 12% 3000 United Founders Blvd. Chase Bank Building 1976 4 54,793 12,160 22% $15.50 15% 6303 N Portland Ave Chase Park 1981 2 30,281 3,479 11% $13.50 16.5% 4323 NW 63rd St Commerce Center South 1982 3 65,857 0 $14.00 11% 9520 N. May Coppertree Centre 1982 3 26,928 3,876 14% $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 1 1984 3 61,289 0 $22.00 15% 13801 Wireless Way Dobson Communications 2001 3 144,420 0 $22.50 16% 14101-14201 Wireless Way Enterprise Plaza 1981 3 92,180 0 $16.00 15% 5600 N. May FBI Building 1999 1 110,000 0 $24.00 3301 W. Memorial Fifty-Six Expressway Place 1982 3 58,340 14,277 24% $12.50 5601 N.W. 72nd Five Corporate Plaza 1980 3 49,486 0 $16.00 15% 3625 N.W. 56th Northwest 5

Year-End Oklahoma City Office Market Summary NORTHWEST Submarket Northwest Northwest Year Built Floors RSF Vacant SF Vacant % Rate CAF Grand Centre 1979 5 101,217 6,953 7% $17.00 15% 5400 N.W. Grand Blvd. Hartford Insurance 1999 1 100,000 0 $18.00 7800 N.W. 85th Terrace IBC Bank Center 1983 10 278,843 7,751 11% $20.00 15% 3817 Northwest Expressway 15,424 (s) Jamestown Office Park 1972/79 2 74,000 11,602 16% $13.00 1 3037 N.W 63rd Lake Park Tower 1983 6 103,084 19,098 19% $15.00 15% 6525 N. Meridian Lakepointe Towers 1981 6 177,746 28,273 16% $15.00 15% 4005-4013 Northwest Expressway Lakepointe West 1982 6 85,246 6,602 8% $14.50 15% 4045 N.W. 64th Lakeshore Tower 1982 3 33,900 3,500 1 $13.50 15% 4301 N.W. 63rd Landmark Towers 1969/72 10 306,960 23,375 8% $15.00 12% 3535-3545-3555 NW 58th Mercury Insurance Building 1986 2 100,103 0 $12.50 12.5% 7301 Northwest Expressway Mutual Assurance Building 1999 2 40,000 3,147 8% $18.00 12% 3121 Quail Springs Parkway North Shore Office Plaza 2001 5 56,418 0 $23.00 16% 10900 Hefner Drive Northwest Office Center 1973 2 85,833 17,362 2 $14.00 15% 4334 Northwest Expressway Oil Center 1973/1994 12 249,657 29,879 12% $16.00 13% 2601 Northwest Expressway One Corporate Plaza 1979 1 63,011 5,667 9% $15.50 15% 3525 NW. 56th Parkway Commons 2003 2 40,729 0 $20.00 15% 13900 N. Portland Portland Plaza 1969 3 35,425 3,122 9% $12.00 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 10,638 29% $12.50 15% 11032 Quail Creek Rd. Quail Ridge Tower 1975 4 46,950 20,395 43% $13.00 16.5% 11212 N. May Quail Springs Parkway Plaza I & II 1986 6 298,610 25,656 9% $21.00 14% 14000 Quail Springs Parkway Rees Plaza at East Wharf 2002 3 40,998 0 $25.00 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 2,671 4% $16.50 13% 9020 N. May The Summit Building 1975 5 50,000 0 $12.00 13% 5929 N. May Three Corporate Plaza 1980 3 49,920 6,677 13% $15.50 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 34,322 14% $19.50 14% 3030 Northwest Expressway Williams Sonoma 1998 1 35,862 0 $17.50 7720 NW 84th St 5,222,995 401,330 7.7% $17.10 (s) Sublease space 6

Year-End Oklahoma City Office Market Summary NORTH Submarket 2 15% 1 HISTORICAL NORTH VACANCY Year-end North submarket REVIEW Aggregate vacancy rates decreased from 17.9% to 15.6% Class A vacancy decreased from 8.8% to 2.9% 5% Class B vacancy increased from 9.5% to 12. : Class C vacancy decreased from 53.9% to 49.5% Aggregate rental rates increased from $16.58 per SF to $16.95 per SF HISTORICAL NORTH RENTAL RATES BY CLASS $25.00 Class A Class B Class C Class A rental rates increased from $21.21 per SF to $21.75 per SF $20.00 Class B rental rates increased from $16.11 per SF to $16.35 per SF Class C rental rates decreased from $12.51 per SF to $12.49 per SF $15.00 The Oklahoma City North submarket experienced positive absorption of 4,000 SF $10.00. 2013 north submarket forecast 10 NORTH OCCUPANCY BY CLASS Vacancy rates could climb 8 6 Rental rates will remain near current levels North 4 2 Class A Class B Class C HISTORICAL NORTH ABSORPTION 20000 0-20000 -40000-60000 -80000-100000 -120000 The Waterford 7

Year-End Oklahoma City Office Market Summary NORTH Submarket North North Year Built Floors RSF Vacant SF Vacant % Rate CAF 1001 Wilshire 2003 4 43,316 0 $20.00 13% 1001 W Wilshire Ave 50 Penn Place 1973 16 178,315 33,334 19% $16.50 12% 5100 N. Pennsylvania 5100 Circle Building 1981 6 74,799 0 $14.00 14% 5100 N. Classen Blvd. 7 & 9 Broadway Executive Park 1979 1 30,505 2,874 9% $15.00 200 NW 66th Broadway North 1974 2 25,703 3,586 14% $15.50 13% 7301 N. Broadway Broadway Plaza 2003 3 50,726 0 $12.00 13% 16 NW 63rd Broadway Sixty-Eight 1979 3 40,000 4,934 12% $14.50 14% 6801 N. Broadway Central Park One 1982 6 113,134 0 $16.50 14% 525 Central Park Dr. Central Park Two 1984 6 124,463 0 $16.50 14% 515 Central Park Dr. Chase Bank Building 1981 4 39,367 2,500 6% $15.00 9% 1200 NW 63rd St Columbus Square 1982 3 36,559 0 $16.00 15% 1001 NW 63rd Five North Broadway 1972 3 44,805 0 $16.00 15% 6601 N. Broadway Harvey Parkway 1982 6 97,912 82,000 84% $17.00 17% 301 NW 63rd Lincoln Plaza Office Park 1970 2 268,000 200,000 75% $12.00 12% 4545 Lincoln Blvd. Market Center I 2 46,368 0 $22.75 701 Market Dr Market Center II 2 50,000 0 $22.75 713 Market Dr Nichols Hills Executive Center 1979 2 52,426 5,576 11% $16.50 1000 W. Wilshire Nichols Hills Tower 1975 4 28,604 10,759 38% $15.00 11% 6410 Avondale Dr One Benham Place 1984 8 152,959 2,360 2% $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 1,077 2% $15.50 12% 201 NW 63rd One Western Plaza 1989 2 50,948 8,000 16% $14.00 16.5% 5500 N. Western Paragon Building 1981 5 110,791 2,659 2% $15.50 15% 5801 N. Broadway Pavilion Building 1974 3 39,895 4,000 1 $12.50 12% 6701 N. Broadway Penn Park 1974 3 78,643 14,036 18% $13.50 13% 5001-5005-5009-5015 N. Penn Registry 1980 2 93,167 11,526 12% $14.00 15% 2200 NW 50th Richmond Square 1982 2 27,606 5,268 19% $15.00 12% 4900 Richmond Square Santa Fe North 1981 4 44,000 0 $14.50 14% 6 NE 63rd The Commons on Broadway 3 50,188 0 $21.75 18% 11600 Broadway Ext 8

Year-End Oklahoma City Office Market Summary NORTH Submarket North Year Built Floors RSF Vacant SF Vacant % Rate CAF Three Broadway Executive Park 1977 3 45,256 16,868 37% $15.50 1 6501 N. Broadway Two Broadway Executive Park 1980 3 52,205 13,247 25% $15.50 11% 205 NW. 63rd Valliance Tower 1983 22 299,137 12,237 4% $22.00 17.8% 1601 Northwest Expressway Waterford A 1983 4 150,048 6,772 5% $21.50 16% 6301 Waterford Blvd. Waterford B 1983 2 35,468 0 $21.50 16% 6303 Waterford Blvd. Waterford C 1983 4 81,575 0 $21.50 16% 6305 Waterford Blvd. Waterford D 1983 2 34,087 0 $21.50 16% 6307 Waterford Blvd. 2,784,791 443,613 15.9% $16.99 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. Market Data Price Edwards & Company has been the top source for Oklahoma City commercial real estate data for over twenty years. Our popular semi-annual market summaries have now been taken interactive. Price Edwards launched okcmarketdata.com in. This web app version of our market summaries allows the user to slice and dice the Oklahoma City commercial real estate market by asset type, lease rates, submarket, and sales date. Properties represented by Price Edwards have extended information including available suites, floor plans, and photos. 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. North 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. 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. 9

Year-End Oklahoma City Office Market Summary MIDTOWN Submarket 15% 12% HISTORICAL MIDTOWN VACANCY Year-end midtown submarket REVIEW Aggregate vacancy rates increased from 5.4% to 12.6% 9% Class B vacancy rates increased from 5.6% to 13.3% 6% 3% Class C vacancy rates increased from 3.9% to 5. Aggregate rental rates increased from $13.22 per SF to $13.76 per SF Class B rental rates increased from $13.36 per SF to $13.96 per SF HISTORICAL MIDTOWN RENTAL RATES $15.00 Class B Class C Class C rental rates remained flat at $11.71 per SF $12.00 The Midtown Submarket experienced negative absorption of 93,000 SF during. 2013 midtown submarket FORECAST $9.00 Vacancy rates will likely increase dramatically as two major tenants are expected to relocate in. MIDTOWN OCCUPANCY Rental rates will remain at or near current levels. Midtown 10 8 6 4 2 Class B Class C HISTORICAL MIDTOWN ABSORPTION 200000 150000 100000 50000 0-50000 -100000 10 The Cameron Building

Year-End Oklahoma City Office Market Summary MIDTOWN Submarket Midtown Year Built Floors RSF Vacant SF Vacant % Rate CAF 2000 Classen Center 1965 6 318,605 0 $14.00 1 2000 N Classen Blvd 4801 Classen Building 1974 2 33,151 5,726 17% $11.00 4801 Classen Blvd. Cameron Building 1955/57 5 81,493 0 $12.00 1 2901 Classen Blvd. Classen Park I 1982 3 52,800 3,625 7% $12.00 13% 3800 N Classen Blvd Classen Park II 1980 2 52,800 0 $12.00 13% 3700 N Classen Blvd Santa Fe Building 1954/82 4 55,203 2,000 4% $10.50 1 3814 N. Santa Fe Ave. Shepherd Mall Office Complex 1964/95 2 709,000 152,220 21% $14.50 2401 NW 23rd Street 1,303,052 163,571 12.55% $13.76 Year-End Oklahoma City Office Market Summary MEDICAL OFFICE Submarket Medical Year Built Floors RSF Vacant SF Vacant % Rate CAF Deaconess Medical North 1996 3 55,209 9,643 17% $19.00 5701 N Portland Ave Deaconess Medical South 1991 6 119,726 1,644 1% $19.00 5401 N Portland Ave McAuley Physician Offices 1986 4 42,246 0 $17.00 4205 McAuley Blvd NeuroScience Institute 1998 3 54,558 0 $19.00 4120 W Memorial Rd Northwest Medical Center 1981 6 82,664 8,652 1 $16.00 13.4% 3330 NW 56th St Parkway Commons Medical Center 1980 2 44,983 0 $19.00 1 3500 NW 56th St Parkway Medical Center 2 27,000 0 $20.00 15% 14100 Parkway Commons Dr Pasteur Medical Building 1959 5 83,858 15,610 19% $16.50 15% 1111 N. Lee Ave. Physicians & Surgeons Bldg 1962 11 75,000 3,700 5% $15.00 1211 N Shartel Ave Physicians Bldg - A 1970 9 68,349 1,322 2% $15.50 14% 3435 NW 56th St Physicians Bldg - B 1986 9 128,030 5,752 4% $19.50 14% 3433 NW 56th St Physicians Bldg - C 1975 8 75,158 4,362 6% $16.00 14% 3400 NW Expressway Physicians Bldg - D 1994 8 120,813 1,280 1% $18.00 14% 3366 NW Expressway Plaza Physician Offices 1992 7 70,050 1,462 2% $18.00 4140 W Memorial Rd Presbyterian Professional Bldg 1995 4 91,122 0 $14.00 15% 711 Stanton L Young Quail Brook Medical 3 34,222 8,608 25% $20.00 15% 13901 McAuley Blvd Saints Medical Plaza 5 82,010 10,107 12% $15.66 16.9% NW 9th St & N Walker Ave SMC Medical Office Bldg 1967 3 29,054 4,094 14% $13.50 4200 S Douglas Ave SMC Medical Plaza 1994 5 58,648 688 1% $16.50 4221 S Western Ave St. Anthony ASC 1998 2 36,551 2,700 7% $19.80 14% 6205 N Santa Fe Ave St. Anthony North POB 1990 2 28,281 3,689 13% $17.50 19.4% 6201 N Santa Fe Ave St. Anthony Prof. Bldg 1987 6 83,898 4,195 5% $18.00 11% 608 NW 9th St Tower Physician Offices 1986 11 93,639 3,478 4% $16.00 4200 W Memorial Rd 1,585,069 90,986 5.7% $17.24 Midtown Suburban 11

Year-End Oklahoma City Office Market Summary WEST Submarket 4 35% 3 25% 2 15% 1 HISTORICAL WEST VACANCY Year-End West submarket REVIEW Aggregate vacancy rates decreased from 36.4% to 34.1% Class B vacancy totals decreased from 36.5% to 29.8% Class C vacancy totals increased from 36.3% to 40.3% 5% Aggregate rental rates decreased from $11.95 per SF to $11.85 per SF Class B rental rates decreased from $11.91 per SF to $11.73 per SF HISTORICAL WEST RENTAL RATES BY CLASS $15.00 Class B Class C Class C rental rates remained flat at $12.02 per SF The West Oklahoma City Office Market experienced negative absorption of 12,000 SF during the first half of. $12.00 2013 West submarket FORECAST Vacancy rates should improve slightly $9.00 Rental rates in the submarket should remain flat WEST OCCUPANCY BY CLASS 8 West 7 6 5 4 3 2 1 Class B Class C HISTORICAL WEST ABSORPTION 0-20000 -40000-60000 -80000-100000 12 The Parkway

Year-End Oklahoma City Office Market Summary WEST Submarket West Year Built Floors RSF Vacant SF Vacant % Rate 1 CAF 300 Meridian Place 1982 2 78,650 49,927 63% $12.00 11% 300 N Meridian Ave Bank 2 Tower 1975 7 65,520 0 $13.00 12% 909 S. Meridian Metro Office Park 1981 3 60,750 32,631 54% $11.00 4300 Highline Blvd. Sovereign Office Park 1983 1 42,260 33,808 8 $10.00 1220 Sovereign Row The Parkway 1982 6 96,960 23,012 24% $14.00 15% 1300 S. Meridian West Park Office Center 1986 1 58,786 27,000 46% $12.75 715 Metropolitan Will Rogers Office Park 1 1984 1 52,779 4,908 9% $8.00 16% 4400 Will Rogers Parkway Will Rogers Office Park 2 1985 1 46,748 0 $11.50 1 4350 Will Rogers Parkway 502,453 171,286 34.1% $11.85 Year-End Oklahoma City Office Market Summary SUBURBAN Submarket HISTORICAL SUBURBAN RENTAL RATES BY CLASS Year-end Suburban submarket REVIEW West $25.00 Class A Class B Class C Aggregate vacancy rates decreased from 13.1% to 11.8% $20.00 Class A vacancy decreased from 8.8% to 4.2% $15.00 Class B vacancy decreased from 10.9% to 10.2% $10.00 Class C vacancy decreased from 29. to 27.4% Aggregate rental rates increased from $15.99 per SF to $16.40 per SF Class A rental rates increased from $20.85 per SF to $21.46 per SF 150000 HISTORICAL SUBURBAN ABSORPTION Class B rental rates increased from $15.28 per SF to $15.67 per SF 100000 50000 Class C rental rates increased from $12.85 per SF to $12.92 per SF 0-50000 Suburban Oklahoma City experienced absorption of only 5,000 SF during. -100000-150000 -200000 2013 SUburban submarket FORECAST Suburban rental rates should continue to trend upward Suburban vacancy rates should remain near current levels except in Midtown where vacancies are expected to climb. New speculative construction is probably still a year or so away Suburban Submarket Totals 9,821,599 1,157,551 11.8% $16.40 13

Year-End Oklahoma City Office Market Summary Oklahoma City saw another very active year of office building sales activity in. Although Price Edwards & Company tracks all office building and medical office buildings sales, this particular report is limited to general office building sales of those properties containing a minimum of 25,000 square feet. Using those parameters, there were a total of 15 transactions containing approximately 2,443,000 square feet and having an aggregate sales value of just over $138 million. Typically, the suburbs experience the most sales activity, and was no exception with 10 of the 15 transactions involving suburban assets. Those 10 transactions comprised roughly 1.1 million square feet and $118 million of value. Included in these sales figures is OPUBCO selling its corporate headquarters office tower and adjacent parking garage for $40 million to an entity affiliated with American Fidelity Insurance, which will occupy most of the tower; the almost $35 million of additional consideration paid for the printing facility and approximately 100 acres of surrounding land is not included in our figures. Another notable transaction was the sale in December of the 280,000 square foot, Class A, Caliber Center at NW Expressway and Portland by Chesapeake Energy. IBC Bank, which occupies roughly 50,000 square feet, purchased the facility for $32.5 million. The energy firm also sold in December the Harvey Parkway building to a local investor group which will ultimately occupy a portion of the building. OPUBCO Tower In the aggregate, Class A suburban assets continue to maintain an average value well north of $100 per square foot. Pricing for Class B assets has crept up over the last several years, due to increased occupancies and rising effective rental rates, where they are now approaching values of $100 per square foot, a level not seen in many years. Although the CBD and adjacent areas did not see as many transactions, many were very interesting in terms of Oklahoma City s continued redevelopment progress and evolution. First, American Farmers & Ranchers Insurance sold its 177,000 square foot facility to the OCU Law School for $10 million. This conversion from general office space to a use more closely associated with its old Central High School heritage, represents an outstanding opportunity for a number of law school students and professors to soon become a part of the downtown and near downtown community fabric. The Caliber Center The Osler building at 1200 North Walker, a long vacant office property, is also being converted, in this instance for hotel use by Coury Properties of Tulsa; this is the same firm which redeveloped the Colcord office building for hotel use before selling it to Devon Energy. This will add to the incredibly successful metamorphosis of the midtown area, led by Midtown Renaissance, LLC which has made tremendous progress the last several years in redeveloping vacant properties into vibrant offices, retail shops and residential units. Coury s boutique hotel will be one more tremendous addition to the area. Another conversion worth noting is the Century Center Mall. Sold to an investor group led by Steve Hurst, this almost totally vacant property will soon see new life with the relocation of OPUBCO, which will occupy roughly 67,000 square feet. With the addition of 400 additional parking spaces on top of the property, and new retail and restaurants on the first floor, Century Center Mall is poised to become a vibrant addition to the heart of the CBD. The other significant CBD transaction involved the long suffering First National Center. The almost 1 million square foot facility was sold, after repeated delays by the federal bankruptcy court, for $5.3 million to a California investor. The future of the property continues to remain unclear as no new redevelopment plans have been announced, nor have any visible construction improvements have been made. Given Oklahoma City s economic performance relative to the rest of the country, it is expected 2013 will see another very active year in the office sector. We expect the number of value-add opportunities will continue to be scarce, other than the potential divestiture of assets by Chesapeake. Owners of well leased, well located and well maintained assets housing solid credit tenants will have ample opportunity to take some chips off the table with an ever increasing population of both local and out-of-state buyers looking to invest in the Oklahoma City market. Price Edwards & Company 210 Park Avenue, Suite 1000, Oklahoma City, OK 73102 Phone (405) 843 7474 Fax (405) 236 1849 www.priceedwards.com