Costar Denver Retail Report

8/9/2019 Costar Denver Retail Report

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Denver Retail MarketY E A R - E N D 2 0 0 9

The CoStar

Retail Report


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Denver Retail Market

2010 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT A

YEAR-END 2009 DENVER

Table of Contents

Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A

Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B

Terms & Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CMarket Highlights & Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

CoStar Markets & Submarkets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Inventory & Development AnalysisSelect Top DeliveriesSelect Top Under Construction Properties

Figures at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Figures at a Glance by Building Type & MarketFigures at a Glance by Building Type & SubmarketHistorical Figures at a GlanceLeasing Activity AnalysisSelect Top Lease Transactions

Sales Activity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Sales Activity AnalysisSelect Top Sales TransactionsSelect Land SalesSelect Same Building Sales

Analysis of Individual CoStar Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Aurora MarketBoulder MarketBroomfield MarketCentral Business District MarketClear Creek County MarketColorado Blvd/Glendale Market

Elbert County MarketFort Collins/Loveland MarketGilpin County MarketLongmont MarketMidtown MarketNorth Denver MarketNortheast Denver MarketNorthwest Denver MarketPark County MarketParker/Castle Rock MarketSoutheast Denver MarketSouthwest Denver Market

Weld County MarketWest Denver Market


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B THE COSTAR RETAIL REPORT 2010 COSTAR GROUP, INC.

DENVER YEAR-END 2009

Methodology

The CoStar Retail Report calculates Retail statistics using CoStar Group's base of existing, underconstruction and under renovation Retail buildings in each given metropolitan area. All Retail buildingtypes are included, including Community Center, Freestanding Retail, Neighborhood Center, PowerCenter, Regional Mall, Specialty Center and Unanchored Strip Center, in both single-tenant and multi-tenant buildings, including owner-occupied buildings. CoStar Group's national database includesapproximately 69.1 billion square feet of coverage in 2.8 million properties. All rental rates reported inthe CoStar Retail Report are calculated using Triple Net (NNN) rental rates.

Copyright 2010 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of theinformation contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness orcompleteness of the information. The publication is provided as is and CoStar expressly disclaims any guarantees, representations orwarranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

CoStar Group, Inc.

2 Bethesda Metro Center Bethesda, MD USA 20814 (800) 204-5960 www.costar.com NASDAQ: CSGP

For information on subscribing to CoStars other products and services, please contact us at

1-877-7COSTAR, or visit our web site at www.costar.com


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2010 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT C


Terms & Definitions

Anchor Tenant: A large national or regional retailer that serves asa primary draw for a shopping center; a store strategically locatedin a retail property in order to enhance, bring attention to, or

increase traffic at the property. Sometimes called a destinationtenant, usually these tenants lease at least 25,000 SF.

Availability Rate: The ratio of available space to total rentablespace, calculated by dividing the total available square feet by thetotal rentable square feet.

Available Space: The total amount of space that is currentlybeing marketed as available for lease in a given time period. Itincludes any space that is available, regardless of whether thespace is vacant, occupied, available for sublease, or available ata future date.

Buyer: The individual, group, company, or entity that has pur-chased a commercial real estate asset.

Cap Rate: Short for capitalization rate. The Cap Rate is a calcula-tion that reflects the relationship between one years net operatingincome and the current market value of a particular property.

The Cap Rate is calculated by dividing the annual net operatingincome by the sales price (or asking sales price).

Community Center: A shopping center development that has atotal square footage between 100,000 350,000 SF. Generallywill have 2-3 large anchored tenants, but not department storeanchors. Community Center typically offers a wider range ofapparel and other soft goods than the Neighborhood Center.Among the more common anchors are supermarkets and superdrugstores. Community Center tenants sometime contain retail-ers selling such items as apparel, home improvement/furnishings,toys, electronics or sporting goods. The center is usually config-ured as a strip, in a straight line, or an L or U shape.

Construction Starts: Buildings that began construction during aspecific period of time. (See also: Deliveries)

Deliveries:Buildings that complete construction during a specifiedperiod of time. In order for space to be considered delivered, acertificate of occupancy must have been issued for the property.

Delivery Date: The date a building completes construction andreceives a certificate of occupancy.

Developer: The company, entity or individual that transforms rawland to improved property by use of labor, capital and entrepre-neurial efforts.

Direct Space: Space that is being offered for lease directly fromthe landlord or owner of a building, as opposed to space beingoffered in a building by another tenant (or broker of a tenant)trying to sublet a space that has already been leased.

Existing Inventory: The square footage of buildings that havereceived a certificate of occupancy and are able to be occupiedby tenants. It does not include space in buildings that are eitherplanned, 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 operatingexpenses such as utilities, electricity, janitorial services, taxes andinsurance.

General Retail: Typically are single tenant freestanding general-purpose commercial buildings with parking. Many single retailbuildings fall into this use code, especially when they dont meetany of the more detailed use code descriptions.

Growth in Inventory: The change in size of the existing squarefootage in a given area over a given period of time, generally dueto the construction of new buildings.

Landlord Rep: (Landlord Representative) In a typical lease trans-

action between an owner/landlord and tenant, the broker thatrepresents the interests of the owner/landlord is referred to as theLandlord Rep.

Leased Space: All the space that has a financial lease obligation.It includes all leased space, regardless of whether the space iscurrently occupied by a tenant. Leased space also includes spacebeing offered for sublease.

Leasing Activity: The volume of square footage that is commit-ted to and signed under a lease obligation for a specific buildingor market in a given period of time. It includes direct leases,subleases and renewals of existing leases. It also includes anypre-leasing activity in planned, under construction, or underrenovation buildings.

Lifestyle Center: An upscale, specialty retail, main street conceptshopping center. An open center, usually without anchors, about300,000 SF GLA or larger, located near affluent neighborhoods,includes upscale retail, trendy restaurants and entertainmentretail. Nicely landscaped with convenient parking located closeto 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 areasthat are competitive with each other and constitute a generallyaccepted primary competitive set of areas. Markets are building-type specific, and are non-overlapping contiguous geographicdesignations having a cumulative sum that matches the boundar-ies of the entire Region (See also: Region). Markets can be furthersubdivided into Submarkets. (See also: Submarkets)

Multi-Tenant: Buildings that house more than one tenant at agiven time. Usually, multi-tenant buildings were designed andbuilt to accommodate many different floor plans and designs fordifferent tenant needs. (See also: Tenancy).

Neighborhood Center: Provides for the sales of conveniencegoods (food, drugs, etc.) and personal services (laundry, drycleaning, etc.) for day-to-day living needs of the immediate neigh-borhood with a supermarket being the principal tenant. In theory,the typical GLA is 50,000 square feet. In practice, the GLA mayrange from 30,000 to 100,000 square feet.

Net Absorption: The net change in occupied space over a givenperiod of time. Unless otherwise noted Net Absorption includesdirect and sublease space.

New Space: Sometimes called first generation space, refers tospace 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 occupiedby a tenant.

Outlet Center: Usually located in a rural or occasionally in a tour-ist location, an Outlet Center consists of manufacturers outletstores selling their own brands at a discount. 50,000 500,000SF. An Outlet Center does not have to be anchored. A strip con-figuration is most common, although some are enclosed mallsand others can be arranged in a village cluster.

Owner: The company, entity, or individual that holds title on agiven building or property.

Planned/Proposed: The status of a building that has beenannounced for future development but not yet startedconstruction.

Power Center: The center typically consists of several freestand-ing (unconnected) anchors and only a minimum amount of smallspecialty tenants. 250,000 600,000 SF. A Power Center is dom-inated by several large anchors, including discount departmentstores, off-price stores, warehouse clubs, or "category killers," i.e.,


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D THE COSTAR RETAIL REPORT 2010 COSTAR GROUP, INC.


stores that offer tremendous selection in a particular merchandisecategory at low prices.

Preleased Space: The amount of space in a building that has beenleased prior to its construction completion date, or certificate ofoccupancy 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 par-ticular building or unit of space by a broker or property owner.Quoted rental rates may differ from the actual rates paid bytenants following the negotiation of all terms and conditions ina specific lease.

RBA: Abbreviation for Rentable Building Area. (See also:Rentable Building Area)

Region: Core areas containing a large population nucleus, thattogether with adjacent communities have a high degree of eco-nomic and social integration. Regions are further divided intomarket 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 aminimum GLA of 100,000 square feet, as the major drawingpower. For even greater comparative shopping, two, three, ormore department stores may be included. In theory a regionalcenter has a GLA of 400,000 square feet, and may range from300,000 to more than 1,000,000 square feet. Regional centers inexcess of 750,000 square feet GLA with three or more depart-ment stores are considered Super Regional. (See also: SuperRegional Mall).

Relet Space: Sometimes called second generation or direct space,refers to existing space that has previously been occupied byanother tenant.

Rentable Building Area: (RBA) The total square footage of abuilding that can be occupied by, or assigned to a tenant for thepurpose of determining a tenants rental obligation. GenerallyRBA includes a percentage of common areas including all hall-ways, main lobbies, bathrooms, and telephone closets.

Rental Rates: The annual costs of occupancy for a particularspace quoted on a per square foot basis.

Sales Price: The total dollar amount paid for a particular propertyat a particular point in time.

Sales Volume: The sum of sales prices for a given group of build-ings in a given time period.

Seller: The individual, group, company, or entity that sells a par-ticular commercial real estate asset.

SF: Abbreviation for Square Feet.

Shopping Center: The combined retail center types of CommunityCenter, 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 AirportRetail, Outlet Center and Theme/Festival Center.

Sports & Entertainment: A facility suited for recreational activi-ties, including: Amusement Facility, Aquatic Facility/SwimmingPool, 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 serviceoutlets managed as a coherent retail entity, with on-site parkingusually located in front of the stores. Open canopies may con-nect the storefronts, but a strip center does not have enclosedwalkways 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 isbeing offered for lease back to the market by the tenant withthe lease obligation. Sublease space is sometimes referred to assublet space.

Submarkets: Specific geographic boundaries that serve to delin-

eate a core group of buildings that are competitive with eachother and constitute a generally accepted primary competitiveset, or peer group. Submarkets are building type specific (office,industrial, retail, etc.), with distinct boundaries dependent ondifferent factors relevant to each building type. Submarkets arenon-overlapping, contiguous geographic designations having acumulative sum that matches the boundaries of the Market theyare located within (See also: Market).

Super Regional Mall: Similar to a regional mall, but because of itslarger size, a super regional mall has more anchors, a deeper selec-tion of merchandise, and draws from a larger population base.As with regional malls, the typical configuration is as an enclosedmall, frequently with multiple levels (See also: Regional Mall).

Tenancy: A term used to indicate whether or not a building isoccupied by multiple tenants (See also: Multi-tenant) or a singletenant. (See also: Single-tenant)

Tenant Rep: Tenant Rep stands for Tenant Representative. In atypical lease transaction between an owner/landlord and tenant,the broker that represents the interests of the tenant is referred toas a Tenant Rep.

Theme/Festival Center: These centers typically employ a unify-ing theme that is carried out by the individual shops in theirarchitectural design and, to an extent, in their merchandise.Sometimes the biggest appeal of these centers is to tourists; theycan be anchored by restaurants and entertainment facilities. Thesecenters, generally located in urban areas, tend to be adapted fromolder, sometimes historic, buildings, and can be part of mixed-useprojects. 80,000 250,000 SF.

Under Construction: The status of a building that is in the processof being developed, assembled, built or constructed. A building isconsidered to be under construction after it has begun construc-

tion and until it receives a certificate of occupancy.

Vacancy Rate: A measurement expressed as a percentage of thetotal amount of physically vacant space divided by the totalamount of existing inventory. Under construction space generallyis 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 avail-able. For example, sublease space that is currently being paid forby a tenant but not occupied by that tenant, would be consideredvacant space. Likewise, space that has been leased but not yetoccupied because of finish work being done, would also be con-sidered vacant space.

Weighted Average Rental Rate: Rental rates that are calculated byfactoring in, or weighting, the square footage associated with each

particular rental rate. This has the effect of causing rental rateson larger spaces to affect the average more than that of smallerspaces. The weighted average rental rate is calculated by takingthe ratio of the square footage associated with the rental rate oneach individual available space to the square footage associatedwith rental rates on all available spaces, multiplying the rental rateby that ratio, and then adding together all the resulting numbers.Unless specifically specified otherwise, rental rate averages includeboth Direct and Sublet available spaces.

Year Built: The year in which a building completed constructionand was issued a certificate of occupancy.

YTD: Abbreviation for Year-to-Date. Describes statistics that arecumulative from the beginning of a calendar year through what-ever time period is being studied.


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2010 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 1

OVERVIEW

Denvers Vacancy Remains Unchanged at 9.1%Net Absorption Positive 197,423 SF in the Quarter

The Denver retail market did not experience much change

in market conditions in the fourth quarter 2009. Thevacancy rate went from 9.1% in the previous quarter

to 9.1% in the current quarter. Net absorption was positive197,423 square feet, and vacant sublease space increased by12,627 square feet. Quoted rental rates decreased from thirdquarter 2009 levels, ending at $15.94 per square foot per year. Atotal of nine retail buildings with 51,228 square feet of retail spacewere delivered to the market in the quarter, with 699,925 squarefeet still under construction at the end of the quarter.

Net AbsorptionRetail net absorption was slightly positive in Denver fourth

quarter 2009, with positive 197,423 square feet absorbed inthe quarter. In third quarter 2009, net absorption was positive292,773 square feet, while in second quarter 2009, absorptioncame in at positive 266,546 square feet. In first quarter 2009,negative (288,095) square feet was absorbed in the market.

Tenants moving out of large blocks of space in 2009 include:Macys moving out of 180,000 square feet at Westminster Mall;and Toyota moving out of 131,290 square feet at MountainStates Toyota.

Tenants moving into large blocks of space in 2009 include:Target moving into 175,000 square feet at River Point atSheridan; King Soopers moving into 99,844 square feet at Shopsat Quail Creek; and JC Penney moving into 97,990 square feet at

955 S. Hoover St.

VacancyDenvers retail vacancy rate changed in the fourth quarter

2009, ending the quarter at 9.1%. Over the past four quarters,

the market has seen an overall increase in the vacancy rate, with

the rate going from 8.9% in the first quarter 2009, to 9.0% atthe end of the second quarter 2009, 9.1% at the end of the thirdquarter 2009, to 9.1% in the current quarter.

The amount of vacant sublease space in the Denver markethas trended down over the past four quarters. At the end ofthe first quarter 2009, there were 906,818 square feet of vacantsublease space. Currently, there are 747,173 square feet vacantin the market.

Largest Lease SigningsThe largest lease signings occurring in 2009 included: the

99,844-square-foot-lease signed by King Soopers at Shops atQuail Creek; the 70,000-square-foot-deal signed by Lowes atAlameda Square Shopping Center; and the 39,564-square-foot-lease signed by Nordstrom Rack at 1505 S Colorado Blvd.

Rental RatesAverage quoted asking rental rates in the Denver retail mar-

ket are down over previous quarter levels, and down from theirlevels four quarters ago. Quoted rents ended the fourth quarter2009 at $15.94 per square foot per year. That compares to$16.13 per square foot in the third quarter 2009, and $16.39 persquare foot at the end of the first quarter 2009. This represents a1.2% decrease in rental rates in the current quarter, and a 2.82%decrease from four quarters ago.

Inventory & ConstructionDuring the fourth quarter 2009, nine buildings totaling

51,228 square feet were completed in the Denver retail marketOver the past four quarters, a total of 1,945,907 square feet ofretail space has been built in Denver. In addition to the current

Vacancy Rates by Building Type 2006-2009

Source: CoStar Property

0%

2%

4%

6%

8%

10%

12%

14%

2006 1q 2006 2q 2006 3q 2006 4q 2007 1q 2007 2q 2007 3q 2007 4q 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Power Center Specialty Center General Retail Shopping Center Mall Total Market


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2 THE COSTAR RETAIL REPORT 2010 COSTAR GROUP, INC.


Denver Retail MarketOVERVIEW

quarter, 28 buildings with 717,306 square feet were completedin third quarter 2009, 12 buildings totaling 379,161 square feetcompleted in second quarter 2009, and 798,212 square feet in 34buildings completed in first quarter 2009.

There were 699,925 square feet of retail space under con-

struction at the end of the fourth quarter 2009.Some of the notable 2009 deliveries include: River Point

at Sheridan, a 233,057-square-foot facility that delivered in firstquarter 2009 and is now 75% occupied, and Southglenn Block 8,a 121,461-square-foot building that delivered in second quarter2009 and is now 100% occupied.

Total retail inventory in the Denver market area amountedto 174,988,129 square feet in 9,818 buildings and 1359 centersas of the end of the fourth quarter 2009.

Shopping CenterThe Shopping Center market in Denver currently consists

of 1289 projects with 67,317,412 square feet of retail space in2,443 buildings. In this report the Shopping Center market iscomprised of all Community Center, Neighborhood Center, andStrip Centers.

After absorbing 54,853 square feet and delivering 1,411square feet in the current quarter, the Shopping Center sector sawthe vacancy rate go from 11.0% at the end of the third quarter2009 to 10.9% this quarter.

Over the past four quarters, the Shopping Center vacancyrate has gone from 10.7% at the end of the first quarter 2009,to 10.7% at the end of the second quarter 2009, to 11.0% at theend of the third quarter 2009, and finally to 10.9% at the end ofthe current quarter.

Rental rates ended the fourth quarter 2009 at $15.05 persquare foot, down from the $15.43 they were at the end of thirdquarter 2009. Rental rates have trended down over the past year,going from $15.87 per square foot a year ago to their currentlevels.

Net absorption in the Shopping Center sector has totaled

(232,402) square feet over the past four quarters. In additionto the positive 54,853 square feet absorbed this quarter, negative(205,790) square feet was absorbed in the third quarter 2009positive 91,715 square feet was absorbed in the second quarter2009, and negative (173,180) square feet was absorbed in the

first quarter 2009.

Power CentersThe Power Center average vacancy rate was 13.2% in the

fourth quarter 2009. With negative (85,200) square feet of neabsorption and 8,412 square feet in new deliveries, the vacancyrate went from 12.7% at the end of last quarter to 13.2% at theend of the fourth quarter.

In the third quarter 2009, Power Centers absorbed positive91,765 square feet, delivered 84,715 square feet, and the vacancyrate went from 12.8% to 12.7% over the course of the quarterRental started the quarter at $23.34 per square foot and ended the

quarter at $22.77 per square foot.A year ago, in fourth quarter 2008, the vacancy ratewas 12.0%. Over the past four quarters, Power Centers haveabsorbed a cumulative 258,761 square feet of space and deliveredcumulative 550,309 square feet of space. Vacant sublease spacehas gone from 101,014 square feet to 79,317 square feet over thattime period, and rental rates have gone from $24.24 to $22.83.

At the end of the fourth quarter 2009, there was no spaceunder construction in the Denver market. The total stock oPower Center space in Denver currently sits at 17,816,299 squarefeet in 42 centers comprised of 350 buildings.

No space was under construction at the end of the fourthquarter 2009.

General Retail PropertiesThe General Retail sector of the market, which includes al

freestanding retail buildings, except those contained within a center, reported a vacancy rate of 7.2% at the end of fourth quarter2009. There was a total of 5,015,763 square feet vacant at thatime. The General Retail sector in Denver currently has averagerental rates of $14.06 per square foot per year. There are 479,753square feet of space under construction in this sector, with 34,449square feet having been completed in the fourth quarter. In allthere are a total of 6,832 buildings with 69,529,628 square feetof General Retail space in Denver.

Specialty CentersThere are currently seven Specialty Centers in the Denver

market, making up 1,645,164 square feet of retail space. In thisreport the Specialty Center market is comprised of Outlet CenterAirport Retail and Theme/Festival Centers.

Specialty Centers in the Denver market have experiencednegative (13,536) square feet of net absorption in 2009. Thevacancy rate currently stands at 7.5%, and rental rates average$28.49 per square foot.

U.S. Vacancy ComparisonPast 10 Quarters


$15

$15

$16

$16

$16

$16

$16

$17

$17

$17

2007

3q

2007

4q

2008

1q

2008

2q

2008

3q

2008

4q

2009

1q

2009

2q

2009

3q

2009

4q

Pricein

DollarsperUnit

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

VacancyRatePercentage

Average Rental Rate Vacancy Rate


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OVERVIEW

MallsMalls recorded net absorption of positive 58,100 square

feet in the fourth quarter 2009. This net absorption number,combined with the 6,956 square feet that was built in the quarter,caused the vacancy rate to go from 5.7% a quarter ago to 5.4%

at the end of the fourth quarter 2009. Rental rates went from$24.76 per square foot to $23.88 per square foot during thattime. In this report the Mall market is comprised of 21 LifestyleCenter, Regional Mall and Super Regional Malls.

Sales ActivityTallying retail building sales of 15,000 square feet or larger,

Denver retail sales figures rose during the third quarter 2009 interms of dollar volume compared to the second quarter of 2009.

In the third quarter, four retail transactions closed with atotal volume of $32,850,000. The four buildings totaled 275,990square feet and the average price per square foot equated to

$119.03 per square foot. That compares to nine transactionstotaling $32,565,000 in the second quarter 2009. The totalsquare footage in the second quarter was 421,244 square feet foran average price per square foot of $77.31.

Total retail center sales activity in 2009 was down comparedto 2008. In the first nine months of 2009, the market saw 18 retailsales transactions with a total volume of $74,740,000. The priceper square foot averaged $89.57. In the same first nine months of2008, the market posted 50 transactions with a total volume of$342,102,700. The price per square foot averaged $152.06.

Cap rates have been higher in 2009, averaging 7.94% compared to the same period in 2008 when they averaged 7.60%.One of the largest transactions that has occurred within the

last four quarters in the Denver market is the sale of Market atSouthpark in Littleton. This 190,095 square foot retail center soldfor $22,000,000, or $115.73 per square foot. The property soldon 8/11/2009.

Reports compiled by: Ethan Reed and Krystal Thomas CoStar Research

Manager.

Absorption & DeliveriesPast 10 Quarters


0.91

(0.38)

0.30

0.97

0.41

(0.42)(0.29)

0.27 0.290.20

0.84 0.85

0.37

1.84

0.99

0.58

0.80

0.38

0.72

0.05

(1.0)

(0.5)

0.0

0.5

1.0

1.5

2.0

2007

3q

2007

4q

2008

1q

2008

2q

2008

3q

2008

4q

2009

1q

2009

2q

2009

3q

2009

4q

MillionsSF

Net Absorption Deliveries


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CoStar Markets & Submarkets

In analyzing metropolitan areas in the U.S., CoStar has developed geographic designations to help group properties together, calledRegions, 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 intoMarkets, which are core areas within a metropolitan area that are known to be competitive with each other in terms of attractingand keeping tenants. Markets are then further subdivided into smaller units called Submarkets, which serve to delineate a core groupof buildings that are competitive with each other and constitute a generally accepted competitive set, or peer group.

MARKETS

Markets Submarkets

Aurora Aurora

Boulder Boulder Boulder County

Central Business District Central Business District LoDo

Colorado Blvd/Glendale Cherry Creek Colorado Blvd/I-25 Glendale

Fort Collins/Loveland Fort Collins/Loveland

Longmont Longmont

Midtown Capitol Hill Platte River South MidtownBroomfield Broomfield County

Parker/Castle Rock Parker/Castle Rock

Weld County Weld County

North Denver North Denver

Northeast Denver East I-70/Montbello Northeast Denver

Northwest Denver Northwest Denver

Southeast Denver Arapahoe Rd Centennial Denver Tech Center East HampdenGreenwood Village Highlands Ranch Inverness MeridianPanorama/Highland Park

Southwest Denver Southwest Denver

Clear Creek County Clear Creek County

West Denver West Denver

Elbert County Elbert County

Gilpin County Gilpin County

Park County Park County


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Historical Deliveries 1982 - 2009

Source: CoStar Property * Future deliveries based on current under construction buildings.

Construction Activity Markets Ranked by Under Construction Square Footage

# Bldgs Preleased SF Preleased % All Existing U/C

Broomfield 1 208,752 100.0% 23,490 208,752

Parker/Castle Rock 4 50,166 31.5% 20,995 39,853

Fort Collins/Loveland 4 124,624 87.7% 19,388 35,535

Southwest Denver 1 0 0.0% 20,607 75,000

Southeast Denver 2 58,278 100.0% 24,548 29,139

Aurora 2 30,324 100.0% 19,456 15,162

North Denver 1 0 0.0% 21,589 11,420

Boulder 1 0 0.0% 18,218 8,100

Weld County 1 0 0.0% 13,862 6,500Colorado Blvd/Glendale 0 0 0.0% 13,019 0

All Other 0 0 0.0% 15,299 0

Totals 17 472,144 67.5% 17,823 41,172


Recent Deliveries Future DeliveriesLeased & Un-Leased SF in Deliveries Since 2005 Preleased & Un-Leased SF in Properties Scheduled to Deliver

Source: CoStar Property Source: CoStar Property

8,100

6,5000

Market

Under Construction Inventory Average Bldg Size

Total GLA

0

208,752

699,925

159,412

142,139

75,000

58,278

30,324

11,420

2.5

3.5 3.7

6.9

4.8

2.5

1.3

2.1

3.5

0.7

1.9

2.52.9 2.9

5.0

3.43.7

4.6

6.1

3.8

6.2

4.6

5.5

6.1

4.2

3.43.8

1.9

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

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 2009

MillionsofSF

Deliveries Average Delivered SF

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2005 2006 2007 2008 2009

MillionsofSF

Leased Un-Leased

0

100

200

300

400

500

600

2010 1q 2010 2q 2011 2q

ThousandsofSF

Preleased Un-Leased

INVENTORY & DEVELOPMENT


11/49




Historical Construction Starts & DeliveriesSquare Footage Per Quarter Starting and Completing Construction


Recent Deliveries by Project Size of Year-to-Date DevelopmentBuilding Size # Bldgs GLA SF Leased % Leased Avg Rate Single-Tenant Multi-Tenant

< 50,000 SF 69 753,649 494,813 65.7% $25.54 55,051 698,598

50,000 SF - 99,999 SF 11 730,791 634,800 86.9% $25.09 142,304 588,487

100,000 SF - 249,999 SF 3 461,467 403,203 87.4% $0.00 0 461,467

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 Existing Inventory ComparisonBased on GLA Developed for Single & Multi Tenant Use Based on Total GLA

2009 Deliveries


Currently Under Construction

0.00

1.41

0.72

0.89 0.88

0.480.55

1.04 1.06

0.33

0.70

0.33

0.22 0.23

0.38

0.17

1.53

0.650.74

1.251.20

0.53

0.84 0.85

0.37

1.84

0.99

0.58

0.80

0.38

0.72

0.05

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0


MillionsofSF

Construction Starts Deliveries

46%54%

Multi Single

10%

90%

Multi Single 0 10 20 30 40 50 60 70 80

Specialty Center

Power Center

Mall

Shopping Center

General Retail

Millions of Square Feet



12/49






13/49



Denver Retail MarketINVENTORY & DEVELOPMENT


14/49




General Retail Market Statistics Year-End 2009YTD Net YTD Under Quoted

Market # Blds Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

Aurora 530 6,088,184 237,989 278,329 4.6% (51,504) 0 30,324 $12.54

Boulder 333 4,063,431 211,786 224,671 5.5% 19,694 9,112 8,100 $17.83

Broomfield 112 823,132 11,296 11,296 1.4% 13,008 0 0 $11.74

Central Business District 84 1,785,668 100,677 100,677 5.6% 49,498 63,332 0 $26.11

Clear Creek County 26 246,226 11,215 11,215 4.6% (11,215) 0 0 $19.23

Colorado Blvd/Glendale 581 4,421,179 268,778 308,342 7.0% 485 79,237 0 $18.49

Elbert County 14 246,043 7,000 7,000 2.8% (7,000) 0 0 $0.00

Fort Collins/Loveland 585 6,709,034 500,628 532,323 7.9% (92,948) 6,535 142,139 $11.81

Gilpin County 4 12,611 0 0 0.0% 0 0 0 $0.00

Longmont 238 2,485,840 196,198 197,423 7.9% 10,315 0 0 $11.88

Midtown 559 4,447,537 339,430 339,430 7.6% (41,509) 19,100 0 $15.17

North Denver 266 3,546,928 220,254 220,254 6.2% 22,346 12,476 0 $11.59

Northeast Denver 402 3,189,880 152,684 152,684 4.8% 56,823 22,270 0 $14.70

Northwest Denver 672 6,187,964 418,950 551,177 8.9% 72 17,136 0 $10.57

Park County 22 85,238 6,184 6,184 7.3% (6,184) 0 0 $0.00

Parker/Castle Rock 212 2,704,128 188,701 191,687 7.1% (8,223) 9,130 159,412 $23.19

Southeast Denver 468 7,202,386 433,185 438,238 6.1% 56,647 130,027 58,278 $14.28

Southwest Denver 612 5,740,730 241,965 293,026 5.1% (65,953) 15,876 75,000 $14.42

Weld County 513 4,819,954 505,756 672,209 13.9% 21,283 144,834 6,500 $10.60

West Denver 599 4,723,535 466,098 479,598 10.2% (149,112) 5,602 0 $12.97

Totals 6,832 69,529,628 4,518,774 5,015,763 7.2% (183,477) 534,667 479,753 $14.06


Mall Market Statistics Year-End 2009YTD Net YTD Under Quoted

Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

Aurora 1 1,084,483 0 0 0.0% 0 0 0 $0.00

Boulder 1 792,007 35,579 35,579 4.5% (2,794) 0 0 $31.93

Broomfield 2 1,830,117 48,005 48,005 2.6% 207,580 0 0 $28.00

Central Business District 0 0 0 0 0.0% 0 0 0 $0.00

Clear Creek County 0 0 0 0 0.0% 0 0 0 $0.00

Colorado Blvd/Glendale 3 1,327,532 8,831 8,831 0.7% (6,410) 0 0 $0.00

Elbert County 0 0 0 0 0.0% 0 0 0 $0.00

Fort Collins/Loveland 3 2,881,890 121,792 121,792 4.2% 58,965 36,166 0 $20.25

Gilpin County 0 0 0 0 0.0% 0 0 0 $0.00

Longmont 1 462,653 81,886 81,886 17.7% 0 0 0 $0.00

Midtown 0 0 0 0 0.0% 0 0 0 $0.00

North Denver 1 656,084 122,650 122,650 18.7% 35,750 27,000 0 $0.00

Northeast Denver 0 0 0 0 0.0% 0 0 0 $0.00

Northwest Denver 2 2,105,538 3 74,311 374,311 17.8% (139,605) 0 0 $17.00

Park County 0 0 0 0 0.0% 0 0 0 $0.00

Parker/Castle Rock 1 202,683 5,688 5,688 2.8% 5,113 0 0 $19.58

Southeast Denver 2 2,781,659 128,527 128,527 4.6% 480,702 577,033 0 $32.00

Southwest Denver 2 2,814,816 75,994 75,994 2.7% 0 0 0 $11.00

Weld County 1 637,172 0 0 0.0% 0 0 0 $0.00

West Denver 1 1,102,992 12,500 12,500 1.1% 0 0 0 $0.00

Totals 21 18,679,626 1,015,763 1,015,763 5.4% 639,301 640,199 0 $23.88


Existing Inventory Vacancy


FIGURES AT A GLANCE


15/49




Power Center Market Statistics Year-End 2009YTD Net YTD Under Quoted


Aurora 3 927,533 185,489 191,639 20.7% 76,501 254,320 0 $19.37

Boulder 1 532,922 29,104 29,104 5.5% (10,022) 0 0 $0.00

Broomfield 1 390,598 71,923 76,037 19.5% (10,203) 0 0 $15.27



Colorado Blvd/Glendale 1 85,431 0 0 0.0% 0 0 0 $0.00

Elbert County 0 0 0 0 0.0% 0 0 0 $0.00

Fort Coll ins/Loveland 4 1,405,703 57,052 57,052 4.1% (12,723) 0 0 $23.92

Gilpin County 0 0 0 0 0.0% 0 0 0 $0.00

Longmont 1 656,999 68,252 68,252 10.4% 6,955 8,412 0 $27.02

Midtown 0 0 0 0 0.0% 0 0 0 $0.00

North Denver 5 2,007,371 205,234 207,824 10.4% (19,985) 0 0 $16.23

Northeast Denver 4 3,646,234 967,333 967,333 26.5% (28,865) 0 0 $28.91

Northwest Denver 3 1,341,095 175,080 175,080 13.1% (9,518) 0 0 $13.12

Park County 0 0 0 0 0.0% 0 0 0 $0.00

Parker/Castle Rock 3 700,563 58,096 58,096 8.3% (1,716) 0 0 $16.01

Southeast Denver 3 1,280,736 143,516 175,198 13.7% (16,263) 0 0 $21.76

Southwest Denver 7 3,124,347 261,777 296,558 9.5% 267,032 287,577 0 $17.11

Weld County 3 610,383 17,025 17,025 2.8% 21,191 0 0 $18.00

West Denver 3 1,106,384 36,109 36,109 3.3% (3,623) 0 0 $15.69

Totals 42 17,816,299 2,275,990 2,355,307 13.2% 258,761 550,309 0 $22.83


Shopping Center Market Statistics Year-End 2009YTD Net YTD Under Quoted


Aurora 138 8,340,474 1,223,475 1,245,468 14.9% 20,778 6,387 0 $12.69

Boulder 67 3,038,049 248,847 281,976 9.3% (15,011) 0 0 $16.26

Broomfield 21 1,983,045 1 75,131 1 82,631 9.2% 58,992 1 04,791 2 08,752 $18.27

Central Business District 9 604,496 136,911 136,911 22.6% (21,275) 0 0 $22.45


Colorado Blvd/Glendale 89 3,773,924 288,821 288,821 7.7% 22,532 0 0 $23.63

Elbert County 2 135,394 11,335 11,335 8.4% (11,335) 0 0 $11.28

Fort Collins/Loveland 93 4,611,668 473,133 473,133 10.3% (76,332) 0 0 $14.55

Gilpin County 0 0 0 0 0.0% 0 0 0 $0.00

Longmont 45 1,952,067 146,717 146,717 7.5% 7,223 0 0 $14.93

Midtown 35 449,201 52,482 52,482 11.7% 31 0 0 $16.82

North Denver 72 3,936,338 390,876 395,572 10.0% (15,398) 0 11,420 $12.12

Northeast Denver 56 2,174,781 266,286 271,188 12.5% (30,357) 0 0 $16.65

Northwest Denver 149 7,877,391 888,587 905,874 11.5% (26,367) 19,154 0 $13.51

Park County 0 0 0 0 0.0% 0 0 0 $0.00

Parker/Castle Rock 72 4,345,219 372,834 377,574 8.7% 1,341 34,632 0 $17.91

Southeast Denver 107 7,289,978 816,441 841,242 11.5% (69,340) 0 0 $16.64

Southwest Denver 152 7,962,772 807,359 823,395 10.3% 42,296 0 0 $14.24

Weld County 59 2,665,727 2 61,028 261,028 9.8% (40,957) 3,768 0 $13.64

West Denver 123 6,176,888 642,191 647,564 10.5% (79,223) 52,000 0 $15.56

Totals 1,289 67,317,412 7,202,454 7,342,911 10.9% (232,402) 220,732 220,172 $15.05




FIGURES AT A GLANCE


16/49




Specialty Center Market Statistics Year-End 2009YTD Net YTD Under Quoted


Aurora 0 0 0 0 0.0% 0 0 0 $0.00

Boulder 1 81,559 27,161 52,981 65.0% (110) 0 0 $23.58

Broomfield 0 0 0 0 0.0% 0 0 0 $0.00

Central Business Distr ict 1 421,877 40,913 40,913 9.7% 10,549 0 0 $39.81


Colorado Blvd/Glendale 0 0 0 0 0.0% 0 0 0 $0.00

Elbert County 0 0 0 0 0.0% 0 0 0 $0.00

Fort Collins/Loveland 1 328,824 5,500 5,500 1.7% 0 0 0 $15.00

Gilpin County 0 0 0 0 0.0% 0 0 0 $0.00

Longmont 1 12,550 0 0 0.0% 0 0 0 $0.00

Midtown 0 0 0 0 0.0% 0 0 0 $0.00

North Denver 0 0 0 0 0.0% 0 0 0 $0.00


Northwest Denver 0 0 0 0 0.0% 0 0 0 $0.00

Park County 0 0 0 0 0.0% 0 0 0 $0.00


Southeast Denver 1 28,325 10,000 14,590 51.5% (14,590) 0 0 $21.00

Southwest Denver 1 284,666 0 0 0.0% 615 0 0 $12.00

Weld County 0 0 0 0 0.0% 0 0 0 $0.00

West Denver 0 0 0 0 0.0% 0 0 0 $0.00

Totals 7 1,645,164 93,574 123,984 7.5% (13,536) 0 0 $28.49


Total Retail Market Statistics Year-End 2009YTD Net YTD Under Quoted


Aurora 845 16,440,674 1,646,953 1,715,436 10.4% 45,775 260,707 30,324 $13.36

Boulder 467 8,507,968 552,477 624,311 7.3% (8,243) 9,112 8,100 $17.35

Broomfield 214 5,026,892 306,355 317,969 6.3% 269,377 104,791 208,752 $17.58



Colorado Blvd/Glendale 738 9,608,066 566,430 605,994 6.3% 16,607 79,237 0 $20.60

Elbert County 16 381,437 18,335 18,335 4.8% (18,335) 0 0 $11.28

Fort Collins/Loveland 822 15,937,119 1,158,105 1,189,800 7.5% (123,038) 42,701 142,139 $14.00

Gilpin County 4 12,611 0 0 0.0% 0 0 0 $0.00

Longmont 327 5,570,109 493,053 494,278 8.9% 24,493 8,412 0 $14.36

Midtown 597 4,896,738 391,912 391,912 8.0% (41,478) 19,100 0 $15.50

North Denver 470 10,146,721 939,014 946,300 9.3% 22,713 39,476 11,420 $12.48

Northeast Denver 569 9,010,895 1,386,303 1,391,205 15.4% (2,399) 22,270 0 $24.43

Northwest Denver 1,001 17,511,988 1,856,928 2,006,442 11.5% (175,418) 36,290 0 $12.75

Park County 22 85,238 6,184 6,184 7.3% (6,184) 0 0 $0.00


Southeast Denver 757 18,583,084 1,531,669 1,597,795 8.6% 437,156 707,060 58,278 $17.19

Southwest Denver 967 19,927,331 1,387,095 1,488,973 7.5% 243,990 303,453 75,000 $14.66

Weld County 630 8,733,236 783,809 950,262 10.9% 1,517 148,602 6,500 $11.92

West Denver 847 13,109,799 1,156,898 1,175,771 9.0% (231,958) 57,602 0 $14.55

Totals 9,818 174,988,129 15,106,555 15,853,728 9.1% 468,647 1,945,907 699,925 $15.94




FIGURES AT A GLANCE


17/49



Denver Retail MarketFIGURES AT A GLANCE

General Retail Submarket Statistics Year-End 2009YTD Net YTD Under Quoted


Arapahoe Rd 79 1,064,422 100,704 100,704 9.5% (85,379) 4,125 0 $9.95

Aurora 530 6,088,184 237,989 278,329 4.6% (51,504) 0 30,324 $12.54

Boulder 245 2,638,813 138,807 144,807 5.5% 17,264 9,112 8,100 $19.42

Boulder County 88 1,424,618 72,979 79,864 5.6% 2,430 0 0 $12.60

Broomfield County 112 823,132 11,296 11,296 1.4% 13,008 0 0 $11.74

Capitol Hill 166 1,398,966 131,272 131,272 9.4% (40,924) 0 0 $15.63

Centennial 29 460,289 48,523 48,523 10.5% (15,555) 0 12,778 $20.90


Cherry Creek 129 878,184 84,373 84,373 9.6% (2,882) 19,000 0 $25.87


Colorado Blvd/I-25 316 2,155,523 68,574 108,138 5.0% 14,218 21,469 0 $17.05

Denver Tech Center 54 1,130,278 52,407 52,407 4.6% 8,955 24,715 0 $19.00

East Hampden 102 1,018,676 46,336 46,336 4.5% 32,847 9,547 0 $12.33

East I-70/Montbello 179 1,423,460 55,545 55,545 3.9% 56,231 12,700 0 $15.02

Elbert County 14 246,043 7,000 7,000 2.8% (7,000) 0 0 $0.00

Fort Collins/Loveland 585 6,709,034 500,628 532,323 7.9% (92,948) 6,535 142,139 $11.81

Gilpin County 4 12,611 0 0 0.0% 0 0 0 $0.00

Glendale 136 1,387,472 115,831 115,831 8.3% (10,851) 38,768 0 $14.27

Greenwood Village 36 382,278 3,100 3,100 0.8% 1,800 0 0 $10.00

Highlands Ranch 102 1,854,670 68,877 73,930 4.0% (19,620) 0 45,500 $17.06

Inverness 6 81,224 21,427 21,427 26.4% 4,484 0 0 $20.50

LoDo 28 605,470 0 0 0.0% 8,500 0 0 $17.18

Longmont 238 2,485,840 196,198 197,423 7.9% 10,315 0 0 $11.88

Meridian 44 808,660 12,400 12,400 1.5% 87,815 91,640 0 $20.59

North Denver 266 3,546,928 220,254 220,254 6.2% 22,346 12,476 0 $11.59

Northeast Denver 223 1,766,420 97,139 97,139 5.5% 592 9,570 0 $13.56

Northwest Denver 672 6,187,964 418,950 551,177 8.9% 72 17,136 0 $10.57

Panorama/Highland Park 16 401,889 79,411 79,411 19.8% 41,300 0 0 $10.38

Park County 22 85,238 6,184 6,184 7.3% (6,184) 0 0 $0.00


Platte River 130 863,356 74,515 74,515 8.6% 13,901 19,100 0 $16.22

South Midtown 263 2,185,215 133,643 133,643 6.1% (14,486) 0 0 $14.26

Southwest Denver 612 5,740,730 241,965 293,026 5.1% (65,953) 15,876 75,000 $14.42

Weld County 513 4,819,954 505,756 672,209 13.9% 21,283 144,834 6,500 $10.60

West Denver 599 4,723,535 466,098 479,598 10.2% (149,112) 5,602 0 $12.97

Totals 6,832 69,529,628 4,518,774 5,015,763 7.2% (183,477) 534,667 479,753 $14.06




18/49




FIGURES AT A GLANCE

Mall Submarket Statistics Year-End 2009YTD Net YTD Under Quoted


Arapahoe Rd 1 1,149,451 80,248 80,248 7.0% 496,785 577,033 0 $32.00

Aurora 1 1,084,483 0 0 0.0% 0 0 0 $0.00

Boulder 1 792,007 35,579 35,579 4.5% (2,794) 0 0 $31.93

Boulder County 0 0 0 0 0.0% 0 0 0 $0.00

Broomfield County 2 1,830,117 48,005 48,005 2.6% 207,580 0 0 $28.00

Capitol Hill 0 0 0 0 0.0% 0 0 0 $0.00

Centennial 0 0 0 0 0.0% 0 0 0 $0.00


Cherry Creek 3 1,327,532 8,831 8,831 0.7% (6,410) 0 0 $0.00


Colorado Blvd/I-25 0 0 0 0 0.0% 0 0 0 $0.00

Denver Tech Center 0 0 0 0 0.0% 0 0 0 $0.00

East Hampden 0 0 0 0 0.0% 0 0 0 $0.00

East I-70/Montbello 0 0 0 0 0.0% 0 0 0 $0.00

Elbert County 0 0 0 0 0.0% 0 0 0 $0.00

Fort Collins/Loveland 3 2,881,890 121,792 121,792 4.2% 58,965 36,166 0 $20.25

Gilpin County 0 0 0 0 0.0% 0 0 0 $0.00

Glendale 0 0 0 0 0.0% 0 0 0 $0.00

Greenwood Village 0 0 0 0 0.0% 0 0 0 $0.00

Highlands Ranch 1 1,632,208 48,279 48,279 3.0% (16,083) 0 0 $0.00

Inverness 0 0 0 0 0.0% 0 0 0 $0.00

LoDo 0 0 0 0 0.0% 0 0 0 $0.00

Longmont 1 462,653 81,886 81,886 17.7% 0 0 0 $0.00

Meridian 0 0 0 0 0.0% 0 0 0 $0.00

North Denver 1 656,084 122,650 122,650 18.7% 35,750 27,000 0 $0.00



Panorama/Highland Park 0 0 0 0 0.0% 0 0 0 $0.00

Park County 0 0 0 0 0.0% 0 0 0 $0.00

Parker/Castle Rock 1 202,683 5,688 5,688 2.8% 5,113 0 0 $19.58

Platte River 0 0 0 0 0.0% 0 0 0 $0.00

South Midtown 0 0 0 0 0.0% 0 0 0 $0.00

Southwest Denver 2 2,814,816 75,994 75,994 2.7% 0 0 0 $11.00

Weld County 1 637,172 0 0 0.0% 0 0 0 $0.00

West Denver 1 1,102,992 12,500 12,500 1.1% 0 0 0 $0.00

Totals 21 18,679,626 1,015,763 1,015,763 5.4% 639,301 640,199 0 $23.88




19/49




Power Center Submarket Statistics Year-End 2009YTD Net YTD Under Quoted


Arapahoe Rd 0 0 0 0 0.0% 0 0 0 $0.00

Aurora 3 927,533 185,489 191,639 20.7% 76,501 254,320 0 $19.37

Boulder 0 0 0 0 0.0% 0 0 0 $0.00

Boulder County 1 532,922 29,104 29,104 5.5% (10,022) 0 0 $0.00

Broomfield County 1 390,598 71,923 76,037 19.5% (10,203) 0 0 $15.27

Capitol Hill 0 0 0 0 0.0% 0 0 0 $0.00

Centennial 0 0 0 0 0.0% 0 0 0 $0.00


Cherry Creek 0 0 0 0 0.0% 0 0 0 $0.00


Colorado Blvd/I-25 1 85,431 0 0 0.0% 0 0 0 $0.00


East Hampden 0 36,220 0 0 0.0% 0 0 0 $0.00

East I-70/Montbello 3 2,325,354 217,333 217,333 9.3% (34,165) 0 0 $22.24

Elbert County 0 0 0 0 0.0% 0 0 0 $0.00


Gilpin County 0 0 0 0 0.0% 0 0 0 $0.00

Glendale 0 0 0 0 0.0% 0 0 0 $0.00

Greenwood Village 1 209,210 24,216 24,216 11.6% (1,200) 0 0 $29.50

Highlands Ranch 1 363,560 71,363 71,363 19.6% 13,500 0 0 $17.93

Inverness 0 0 0 0 0.0% 0 0 0 $0.00

LoDo 0 0 0 0 0.0% 0 0 0 $0.00

Longmont 1 656,999 68,252 68,252 10.4% 6,955 8,412 0 $27.02

Meridian 0 0 0 0 0.0% 0 0 0 $0.00

North Denver 5 2,007,371 205,234 207,824 10.4% (19,985) 0 0 $16.23

Northeast Denver 1 1,320,880 750,000 750,000 56.8% 5,300 0 0 $30.00


Panorama/Highland Park 1 671,746 47,937 79,619 11.9% (28,563) 0 0 $23.29

Park County 0 0 0 0 0.0% 0 0 0 $0.00


Platte River 0 0 0 0 0.0% 0 0 0 $0.00

South Midtown 0 0 0 0 0.0% 0 0 0 $0.00

Southwest Denver 7 3,124,347 261,777 296,558 9.5% 267,032 287,577 0 $17.11

Weld County 3 610,383 17,025 17,025 2.8% 21,191 0 0 $18.00

West Denver 3 1,106,384 36,109 36,109 3.3% (3,623) 0 0 $15.69

Totals 42 17,816,299 2,275,990 2,355,307 13.2% 258,761 550,309 0 $22.83




20/49




FIGURES AT A GLANCE

Shopping Center Submarket Statistics Year-End 2009YTD Net YTD Under Quoted


Arapahoe Rd 22 1,973,691 208,170 208,170 10.5% (20,807) 0 0 $16.75

Aurora 138 8,340,474 1,223,475 1,245,468 14.9% 20,778 6,387 0 $12.69

Boulder 55 2,670,556 219,824 252,953 9.5% (30,166) 0 0 $15.98

Boulder County 12 367,493 29,023 29,023 7.9% 15,155 0 0 $18.61

Broomfield County 21 1,983,045 175,131 182,631 9.2% 58,992 104,791 208,752 $18.27

Capitol Hill 19 208,107 14,312 14,312 6.9% 3,000 0 0 $16.02

Centennial 3 67,350 32,518 32,518 48.3% 0 0 0 $29.07

Central Business District 7 292,659 136,911 136,911 46.8% (21,275) 0 0 $22.45

Cherry Creek 15 378,540 48,249 48,249 12.7% (8,165) 0 0 $28.10


Colorado Blvd/I-25 37 1,748,305 161,614 161,614 9.2% 33,956 0 0 $23.39

Denver Tech Center 16 873,756 160,005 160,005 18.3% 8,896 0 0 $12.44

East Hampden 22 1,381,999 133,176 157,977 11.4% (45,784) 0 0 $11.35

East I-70/Montbello 32 1,315,015 157,774 161,269 12.3% (24,590) 0 0 $18.23

Elbert County 2 135,394 11,335 11,335 8.4% (11,335) 0 0 $11.28


Gilpin County 0 0 0 0 0.0% 0 0 0 $0.00

Glendale 37 1,647,079 78,958 78,958 4.8% (3,259) 0 0 $19.11

Greenwood Village 6 362,179 78,219 78,219 21.6% (4,876) 0 0 $29.86

Highlands Ranch 22 1,775,821 92,809 92,809 5.2% 27,834 0 0 $15.67

Inverness 1 256,504 68,548 68,548 26.7% (15,711) 0 0 $17.00

LoDo 2 311,837 0 0 0.0% 0 0 0 $0.00

Longmont 45 1,952,067 146,717 146,717 7.5% 7,223 0 0 $14.93

Meridian 10 202,561 20,123 20,123 9.9% (9,412) 0 0 $25.67

North Denver 72 3,936,338 390,876 395,572 10.0% (15,398) 0 11,420 $12.12

Northeast Denver 24 859,766 108,512 109,919 12.8% (5,767) 0 0 $13.61

Northwest Denver 149 7,877,391 888,587 905,874 11.5% (26,367) 19,154 0 $13.51

Panorama/Highland Park 5 396,117 22,873 22,873 5.8% (9,480) 0 0 $16.54

Park County 0 0 0 0 0.0% 0 0 0 $0.00

Parker/Castle Rock 72 4,345,219 372,834 377,574 8.7% 1,341 34,632 0 $17.91

Platte River 7 99,371 13,088 13,088 13.2% (4,192) 0 0 $17.91

South Midtown 9 141,723 25,082 25,082 17.7% 1,223 0 0 $16.96

Southwest Denver 152 7,962,772 807,359 823,395 10.3% 42,296 0 0 $14.24

Weld County 59 2,665,727 261,028 261,028 9.8% ( 40,957) 3,768 0 $13.64

West Denver 123 6,176,888 642,191 647,564 10.5% (79,223) 52,000 0 $15.56

Totals 1,289 67,317,412 7,202,454 7,342,911 10.9% (232,402) 220,732 220,172 $15.05




21/49




Specialty Center Submarket Statistics Year-End 2009YTD Net YTD Under Quoted


Arapahoe Rd 0 0 0 0 0.0% 0 0 0 $0.00

Aurora 0 0 0 0 0.0% 0 0 0 $0.00

Boulder 1 81,559 27,161 52,981 65.0% (110) 0 0 $23.58

Boulder County 0 0 0 0 0.0% 0 0 0 $0.00

Broomfield County 0 0 0 0 0.0% 0 0 0 $0.00

Capitol Hill 0 0 0 0 0.0% 0 0 0 $0.00

Centennial 0 0 0 0 0.0% 0 0 0 $0.00

Central Business District 1 421,877 40,913 40,913 9.7% 10,549 0 0 $39.81

Cherry Creek 0 0 0 0 0.0% 0 0 0 $0.00


Colorado Blvd/I-25 0 0 0 0 0.0% 0 0 0 $0.00


East Hampden 0 0 0 0 0.0% 0 0 0 $0.00

East I-70/Montbello 0 0 0 0 0.0% 0 0 0 $0.00

Elbert County 0 0 0 0 0.0% 0 0 0 $0.00

Fort Col lins/Loveland 1 328,824 5,500 5,500 1.7% 0 0 0 $15.00

Gilpin County 0 0 0 0 0.0% 0 0 0 $0.00

Glendale 0 0 0 0 0.0% 0 0 0 $0.00

Greenwood Village 0 0 0 0 0.0% 0 0 0 $0.00

Highlands Ranch 0 0 0 0 0.0% 0 0 0 $0.00

Inverness 0 0 0 0 0.0% 0 0 0 $0.00

LoDo 0 0 0 0 0.0% 0 0 0 $0.00

Longmont 1 12,550 0 0 0.0% 0 0 0 $0.00

Meridian 1 28,325 10,000 14,590 51.5% (14,590) 0 0 $21.00

North Denver 0 0 0 0 0.0% 0 0 0 $0.00


Northwest Denver 0 0 0 0 0.0% 0 0 0 $0.00

Panorama/Highland Park 0 0 0 0 0.0% 0 0 0 $0.00

Park County 0 0 0 0 0.0% 0 0 0 $0.00


Platte River 0 0 0 0 0.0% 0 0 0 $0.00

South Midtown 0 0 0 0 0.0% 0 0 0 $0.00

Southwest Denver 1 284,666 0 0 0.0% 615 0 0 $12.00

Weld County 0 0 0 0 0.0% 0 0 0 $0.00

West Denver 0 0 0 0 0.0% 0 0 0 $0.00

Totals 7 1,645,164 93,574 123,984 7.5% (13,536) 0 0 $28.49




22/49




FIGURES AT A GLANCE

Total Retail Submarket Statistics Year-End 2009YTD Net YTD Under Quoted


Arapahoe Rd 152 4,187,564 389,122 389,122 9.3% 390,599 5 81,158 0 $18.13

Aurora 845 16,440,674 1,646,953 1,715,436 10.4% 45,775 2 60,707 30,324 $13.36

Boulder 343 6,182,935 421,371 486,320 7.9% (15,806) 9,112 8,100 $17.73

Boulder County 124 2,325,033 131,106 137,991 5.9% 7,563 0 0 $15.14

Broomfield County 214 5,026,892 306,355 317,969 6.3% 269,377 104,791 208,752 $17.58

Capitol Hill 185 1,607,073 145,584 145,584 9.1% (37,924) 0 0 $15.72

Centennial 33 527,639 81,041 81,041 15.4% (15,555) 0 12,778 $25.41


Cherry Creek 157 2,584,256 141,453 141,453 5.5% (17,457) 19,000 0 $26.89


Colorado Blvd/I-25 384 3,989,259 230,188 269,752 6.8% 48,174 21,469 0 $19.48

Denver Tech Center 77 2,004,034 212,412 212,412 10.6% 17,851 24,715 0 $13.51

East Hampden 144 2,436,895 179,512 204,313 8.4% (12,937) 9,547 0 $11.58

East I-70/Montbello 297 5,063,829 430,652 434,147 8.6% (2,524) 12,700 0 $18.49

Elbert County 16 381,437 18,335 18,335 4.8% (18,335) 0 0 $11.28

Fort Collins/Loveland 822 15,937,119 1,158,105 1,189,800 7.5% (123,038) 42,701 142,139 $14.00

Gilpin County 4 12,611 0 0 0.0% 0 0 0 $0.00

Glendale 197 3,034,551 194,789 194,789 6.4% (14,110) 38,768 0 $16.28

Greenwood Vil lage 63 953,667 105,535 105,535 11.1% (4,276) 0 0 $26.92

Highlands Ranch 177 5,626,259 281,328 286,381 5.1% 5,631 0 45,500 $16.66

Inverness 14 337,728 89,975 89,975 26.6% (11,227) 0 0 $18.32

LoDo 30 917,307 0 0 0.0% 8,500 0 0 $17.18

Longmont 327 5,570,109 493,053 494,278 8.9% 24,493 8,412 0 $14.36

Meridian 57 1,039,546 42,523 47,113 4.5% 63,813 91,640 0 $22.50

North Denver 470 10,146,721 939,014 946,300 9.3% 22,713 39,476 11,420 $12.48

Northeast Denver 272 3,947,066 955,651 957,058 24.2% 125 9,570 0 $27.41

Northwest Denver 1,001 17,511,988 1,856,928 2,006,442 11.5% (175,418) 36,290 0 $12.75

Panorama/Highland Park 40 1,469,752 150,221 181,903 12.4% 3,257 0 0 $15.44

Park County 22 85,238 6,184 6,184 7.3% (6,184) 0 0 $0.00


Platte River 139 962,727 87,603 87,603 9.1% 9,709 19,100 0 $16.59

South Midtown 273 2,326,938 158,725 158,725 6.8% (13,263) 0 0 $14.73

Southwest Denver 967 19,927,331 1,387,095 1,488,973 7.5% 243,990 303,453 75,000 $14.66

Weld County 630 8,733,236 783,809 950,262 10.9% 1,517 148,602 6,500 $11.92

West Denver 847 13,109,799 1,156,898 1,175,771 9.0% (231,958) 57,602 0 $14.55

Totals 9,818 174,988,129 15,106,555 15,853,728 9.1% 468,647 1,945,907 699,925 $15.94




23/49




General Retail Market Statistics Year-End 2009Net Quoted

Period # Blds Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates

2009 4q 6,832 69,529,628 4,518,774 5,015,763 7.2% 175,112 5 34,449 15 479,753 $14.06

2009 3q 6,828 69,495,691 4,627,584 5,156,938 7.4% 100,495 12 255,944 13 341,000 $14.25

2009 2q 6,817 69,248,695 4,413,636 5,010,437 7.2% (236,812) 4 26,978 21 446,913 $14.172009 1q 6,813 69,221,717 4,143,090 4,746,647 6.9% (222,272) 17 217,296 17 292,922 $13.98

2008 4q 6,796 69,004,421 3,918,311 4,307,079 6.2% 91,968 24 464,011 28 470,693 $14.56

2008 3q 6,774 68,553,715 3,585,413 3,948,341 5.8% (43,110) 20 245,870 43 763,427 $14.41

2008 2q 6,756 68,318,943 3,492,973 3,670,459 5.4% 360,630 17 275,328 54 911,984 $15.10

2008 1q 6,739 68,043,615 3,616,722 3,755,761 5.5% 191,256 17 206,742 54 1,045,050 $14.92

2007 4q 6,727 68,551,075 4,306,454 4,454,477 6.5% (465,043) 12 340,402 47 774,260 $15.09

2007 3q 6,718 68,253,976 3,545,410 3,692,335 5.4% 645,983 24 612,702 42 876,165 $15.46

2007 2q 6,697 67,757,475 3,677,194 3,841,817 5.7% 464,204 14 229,443 51 1,243,827 $15.65

2007 1q 6,684 67,531,644 3,914,512 4,080,190 6.0% 814,507 29 625,127 49 1,220,574 $16.07

2006 4q 6,659 66,967,294 4,162,046 4,330,347 6.5% 742,884 25 602,568 47 1,234,117 $16.11

2006 3q 6,636 66,398,526 4,345,800 4,504,463 6.8% 430,569 24 505,403 61 1,400,207 $15.85

2006 2q 6,613 65,894,414 4,276,979 4,430,920 6.7% 395,784 15 279,987 59 1,534,530 $15.29

2006 1q 6,599 65,624,994 4,409,518 4,557,284 6.9% 430,228 31 681,282 47 1,151,934 $14.67


Mall Market Statistics Year-End 2009Net Quoted

Period # Ctrs Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates

2009 4q 21 18,679,626 1,015,763 1,015,763 5.4% 58,100 1 6,956 0 0 $23.88

2009 3q 21 18,672,670 1,066,907 1,066,907 5.7% 318,593 12 372,879 1 6,956 $24.76

2009 2q 21 18,299,791 1,008,288 1,012,621 5.5% 379,925 2 204,154 12 372,879 $25.12

2009 1q 21 18,095,637 1,181,923 1,188,392 6.6% (117,317) 2 56,210 12 563,092 $25.24

2008 4q 21 18,039,427 1,011,195 1,014,865 5.6% (12,382) 1 14,331 9 509,559 $24.66

2008 3q 21 18,025,096 986,016 988,152 5.5% 339,796 8 480,349 10 523,890 $27.12

2008 2q 20 17,544,747 845,463 847,599 4.8% 386,146 19 489,533 11 534,777 $24.71

2008 1q 20 17,055,214 744,212 744,212 4.4% 19,526 1 2,689 29 997,310 $24.50

2007 4q 20 17,052,525 761,049 761,049 4.5% (52,826) 1 15,000 24 853,431 $24.50

2007 3q 20 17,037,525 693,223 693,223 4.1% 51,949 0 0 11 367,695 $26.89

2007 2q 20 17,037,525 733,788 745,172 4.4% 33,362 3 129,098 7 116,647 $26.19

2007 1q 20 16,908,427 644,778 649,436 3.8% 110,290 2 61,470 6 168,985 $25.37

2006 4q 20 16,846,957 693,598 698,256 4.1% 68,948 4 227,922 8 230,455 $26.53

2006 3q 20 16,619,035 534,624 539,282 3.2% 17,760 1 4,907 8 359,959 $27.66

2006 2q 20 16,614,128 548,270 552,135 3.3% 62,690 3 171,756 7 296,173 $27.56

2006 1q 20 16,442,372 439,204 443,069 2.7% (19,846) 1 243,976 7 396,490 $27.99


Power Center Market Statistics Year-End 2009Net Quoted


2009 4q 42 17,816,299 2,275,990 2,355,307 13.2% (85,200) 2 8,412 0 0 $22.83

2009 3q 42 17,807,887 2,216,652 2,261,695 12.7% 91,765 3 84,715 2 8,412 $22.77

2009 2q 42 17,723,172 2,227,261 2,268,745 12.8% 22,901 3 27,793 5 93,127 $23.34

2009 1q 42 17,695,379 2,192,218 2,263,853 12.8% 229,295 9 429,389 6 90,725 $23.56

2008 4q 42 17,265,990 1,962,745 2,063,759 12.0% (303,746) 3 25,289 12 457,182 $24.24

2008 3q 42 17,240,701 1,664,363 1,734,724 10.1% 217,290 7 188,249 12 454,678 $24.60

2008 2q 42 17,052,452 1,645,263 1,763,765 10.3% 126,335 3 919,874 13 588,899 $24.28

2008 1q 42 16,132,578 854,974 970,226 6.0% (3,370) 0 0 12 1,433,295 $19.71

2007 4q 42 16,132,578 866,974 966,856 6.0% 154,552 2 96,462 4 1,071,874 $19.64

2007 3q 42 16,036,116 924,902 1,024,946 6.4% 341,953 4 152,842 3 996,462 $20.03

2007 2q 42 15,883,274 1,110,690 1,214,057 7.6% 224,627 1 20,390 7 1,149,304 $19.93

2007 1q 42 15,862,884 1,316,075 1,418,294 8.9% 222,812 2 282,470 7 1,161,232 $20.52

2006 4q 42 15,580,414 1,279,094 1,358,636 8.7% 497,851 8 327,394 7 1,352,902 $20.16

2006 3q 42 15,253,020 1,445,555 1,529,093 10.0% (223,254) 1 1,794 11 1,509,864 $20.20

2006 2q 42 15,251,226 1,221,947 1,304,045 8.6% 17,735 2 66,680 10 1,484,076 $20.13

2006 1q 42 15,184,546 1,176,502 1,255,100 8.3% 89,451 8 290,534 6 1,149,442 $19.14


Existing Inventory Vacancy Deliveries UC Inventory




24/49




FIGURES AT A GLANCE

Shopping Center Market Statistics Year-End 2009Net Quoted


2009 4q 1,289 67,317,412 7,202,454 7,342,911 10.9% 54,853 1 1,411 2 220,172 $15.05

2009 3q 1,289 67,316,001 7,267,229 7,396,353 11.0% (205,790) 1 3,768 3 221,583 $15.43

2009 2q 1,289 67,312,233 7,069,753 7,186,795 10.7% 91,715 3 120,236 2 5,179 $15.522009 1q 1,288 67,191,997 6,985,114 7,158,274 10.7% (173,180) 6 95,317 5 125,415 $15.61

2008 4q 1,286 67,096,680 6,698,451 6,889,777 10.3% (173,004) 10 72,728 10 216,964 $15.87

2008 3q 1,285 67,023,952 6,497,294 6,644,045 9.9% (56,548) 12 78,987 16 157,502 $15.86

2008 2q 1,281 66,944,965 6,370,025 6,508,510 9.7% 96,984 7 158,287 24 155,596 $15.73

2008 1q 1,277 66,786,678 6,309,398 6,447,207 9.7% 94,541 14 161,801 19 232,461 $15.60

2007 4q 1,271 66,624,877 6,244,335 6,379,947 9.6% (15,266) 12 398,229 22 317,999 $15.48

2007 3q 1,266 66,226,648 5,833,512 5,966,452 9.0% (125,668) 7 73,339 29 590,534 $15.61

2007 2q 1,264 66,153,309 5,672,580 5,767,445 8.7% 349,349 9 151,556 28 607,531 $15.72

2007 1q 1,261 66,001,753 5,804,462 5,965,238 9.0% (52,260) 13 234,024 27 621,661 $15.53

2006 4q 1,258 65,767,729 5,523,093 5,678,954 8.6% 267,758 11 88,842 33 679,993 $14.96

2006 3q 1,254 65,678,887 5,758,196 5,857,870 8.9% 110,725 8 231,033 37 587,794 $14.90

2006 2q 1,251 65,447,854 5,650,752 5,737,562 8.8% (98,338) 13 133,100 27 564,306 $14.76

2006 1q 1,247 65,314,754 5,446,225 5,506,124 8.4% (121,022) 23 309,822 25 418,287 $14.56


Specialty Center Market Statistics Year-End 2009Net Quoted


2009 4q 7 1,645,164 93,574 123,984 7.5% (5,442) 0 0 0 0 $28.49

2009 3q 7 1,645,164 87,517 118,542 7.2% (12,290) 0 0 0 0 $20.03

2009 2q 7 1,645,164 79,817 106,252 6.5% 8,817 0 0 0 0 $20.01

2009 1q 7 1,645,164 63,072 115,069 7.0% (4,621) 0 0 0 0 $18.90

2008 4q 7 1,645,164 57,462 110,448 6.7% (24,051) 0 0 0 0 $18.91

2008 3q 7 1,645,164 51,462 86,397 5.3% (45,967) 0 0 0 0 $18.17

2008 2q 7 1,645,164 6,110 40,430 2.5% 118 0 0 0 0 $18.21

2008 1q 7 1,645,164 9,228 40,548 2.5% (3,118) 0 0 0 0 $18.21

2007 4q 7 1,645,164 6,110 37,430 2.3% 1,695 0 0 0 0 $18.21

2007 3q 7 1,645,164 7,805 39,125 2.4% 0 0 0 0 0 $18.21

2007 2q 7 1,645,164 7,805 39,125 2.4% (10) 0 0 0 0 $18.21

2007 1q 7 1,645,164 7,795 39,115 2.4% (10,869) 0 0 0 0 $17.202006 4q 7 1,645,164 22,746 28,246 1.7% 0 0 0 0 0 $17.20

2006 3q 7 1,645,164 22,746 28,246 1.7% (17,021) 0 0 0 0 $17.20

2006 2q 7 1,645,164 1,695 11,225 0.7% 1,005 0 0 0 0 $17.20

2006 1q 7 1,645,164 2,700 12,230 0.7% (1,005) 0 0 0 0 $16.35


Total Retail Market Statistics Year-End 2009Net Quoted

Period # Blds Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates

2009 4q 9,818 174,988,129 15,106,555 15,853,728 9.1% 197,423 9 51,228 17 699,925 $15.94

2009 3q 9,810 174,937,413 15,265,889 16,000,435 9.1% 292,773 28 717,306 19 577,951 $16.13

2009 2q 9,783 174,229,055 14,798,755 15,584,850 8.9% 266,546 12 379,161 40 918,098 $16.35

2009 1q 9,771 173,849,894 14,565,417 15,472,235 8.9% (288,095) 34 798,212 40 1,072,154 $16.39

2008 4q 9,737 173,051,682 13,648,164 14,385,928 8.3% (421,215) 38 576,359 59 1,654,398 $16.80

2008 3q 9,701 172,488,628 12,784,548 13,401,659 7.8% 411,461 47 993,455 81 1,899,497 $16.75

2008 2q 9,656 171,506,271 12,359,834 12,830,763 7.5% 970,213 46 1,843,022 102 2,191,256 $16.80

2008 1q 9,610 169,663,249 11,534,534 11,957,954 7.0% 298,835 32 371,232 114 3,708,116 $15.81

2007 4q 9,583 170,006,219 12,184,922 12,599,759 7.4% (376,888) 27 850,093 97 3,017,564 $15.75

2007 3q 9,559 169,199,429 11,004,852 11,416,081 6.7% 914,217 35 838,883 85 2,830,856 $15.96

2007 2q 9,527 168,476,747 11,202,057 11,607,616 6.9% 1,071,532 27 530,487 93 3,117,309 $16.08

2007 1q 9,501 167,949,872 11,687,622 12,152,273 7.2% 1,084,480 46 1,203,091 89 3,172,452 $16.14

2006 4q 9,459 166,807,558 11,680,577 12,094,439 7.3% 1,577,441 48 1,246,726 95 3,497,467 $15.78

2006 3q 9,413 165,594,632 12,106,921 12,458,954 7.5% 318,779 34 743,137 117 3,857,824 $15.70

2006 2q 9,380 164,852,786 11,699,643 12,035,887 7.3% 378,876 33 651,523 103 3,879,085 $15.47

2006 1q 9,348 164,211,830 11,474,149 11,773,807 7.2% 377,806 63 1,525,614 85 3,116,153 $15.10






25/49




Historical Rental RatesBased on NNN Rental Rates


Vacancy by Available Space Type Vacancy by Building TypePercent of All Vacant Space in Direct vs. Sublet Percent of All Vacant Space by Building Type


GLA By Building Type Future Space AvailableRatio of Total GLA by Building Type Space Scheduled to be Available for Occupancy*

Source: CoStar Property * Includes Under Construction Spaces Source: CoStar Property

$13.00

$15.00

$17.00

$19.00

$21.00

$23.00

$25.00

$27.00

$29.00


Dollars/SF/Year

Power Center Specialty Center General Retail Shopping Center Mall Total Market

0 10 20 30 40 50 60 70 80

Specialty Center

Power Center

Mall

Shopping Center

General Retail

Millions of Square Feet

5%

95%

Direct Sublet 0% 10% 20% 30% 40% 50%

Specialty Center

Mall

Power Center

General Retail

Shopping Center

0.18

0.03

0.15

0.00 0.00 0.00

0.0

0.0

0.0

0.1

0.1

0.1

0.1

0.1

0.2

0.2

0.2

2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q

Millions

LEASING ACTIVITY


26/49




LEASING ACTIVITY


* Renewal

Building Submarket SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company

1 Shops at Quail Creek Broomeld County 99,844 1st King Soopers N/A Regency Centers

2 Alameda Square Shopping Center Southwest Denver 70,000 2nd Lowes Direct Deal Brighton Corporation

3 1505 S Colorado Blvd Colorado Blvd/I-25 39,564 3rd Nordstrom Rack David Hicks & Lampert Brokerage Inc KP Properties of Colorado LLC

4 Lord & Taylor (former) Broomeld County 30,391 2nd Ultimate Electronics N/A The Macerich Company

5 Belmar Southwest Denver 29,026 1st N/A N/A Continuum Partners LLC

6 Centennial Promenade Panorama/Highland Park 28,123 4th N/A Direct Deal SullivanHayes Brokerage

7 Sprouts Farmers Market Aurora 26,000 4th Sprouts Farmers Market N/A Miller Weingarten Realty, LLC

8 Havana Plaza Aurora 25,593 4th Addis Ababa Restaurant Direct Deal N/A

9 Belleview Shores Shopping Center Southwest Denver 25,216 1st American Furniture Warehouse Direct Deal Jordon Perlmutter & Co.

10 Sprouts Parker/Castle Rock 25,158 3rd Parker Payless Wine & Spirits Fuller Real Estate Fuller Real Estate

11 Huron Plaza Bldgs A-C Northwest Denver 24,928 2nd Savage Elite Sportsplex Direct Deal Summit Real Estate Management

12 Williams Village Shopping Center Boulder 23,837 2nd Sprouts Farmers Market SullivanHayes Brokerage Gibbons-White, Inc.

13 Bowles Crossing Southwest Denver 22,000 1st Sports Authority N/A CB Richard Ellis

14 5816 S College Ave Fort Collins/Loveland 18,000 1st N/A N/A Realtec Commercial Real Estate Serv

15 Dollar Tree East I-70/Montbello 17,500 1st Dollar Tree Stores Inc N/A Shames-Makovsky Realty Company

16 Brittany Hill North Denver 17,241 2nd Brittany Hill, LLC Direct Deal Leino & Company LLC

17 Ultimate Electronics Fort Collins/Loveland 16,200 3rd Spotlight Music N/A SullivanHayes Brokerage

18 Gardens on Havana B1-B2 Aurora 15,000 3rd PETCO Legend Retail Group Miller Weingarten Realty, LLC

19 Walgreens Southwest Denver 14,820 1st Walgreens N/A N/A

20 Harmony School Shops Fort Collins/Loveland 14,000 1st Direct Buy N/A SullivanHayes Brokerage

21 ACE Hardware Boulder 13,989 4th N/A N/A Gibbons-White, Inc.

22 Fiesta Plaza Southwest Denver 12,911 1st Family Dollar Stores of Colorado N/A Fuller Real Estate

23 Aurora Mall Plaza West* Aurora 11,500 4th Winners Bingo Direct Deal Dunton Commercial Real Estate Co.

24 1401 Ogden St Capitol Hill 11,000 1st Celebrationworks N/A Emerson Block, LLC

25 1230 Park St Parker/Castle Rock 10,800 1st N/A N/A Larry W Davidson & George A Evans

26 Dry Creek Center Arapahoe Rd 10,800 4th Dollar Tree N/A J&B Building Company

27 Pier One Imports Parker/Castle Rock 10,800 4th Vitamin Shoppe Legend Retail Group Legend Retail Group

28 7171 W Alaska Dr Southwest Denver 10,171 2nd N/A N/A Cushman & Wakeeld of Colorado

29 Cherry Creek Shopping Center Cherry Creek 9,200 2nd Brio Tuscan Grille N/A Cherry Creek Shopping Center

30 5816 S College Ave Fort Collins/Loveland 9,068 1st N/A N/A Realtec Commercial Real Estate Serv

31 Villa South Southwest Denver 9,042 4th N/A N/A Sperry Properties, Inc.

32 Chambers Point Aurora 8,900 1st N/A N/A Western Centers, Inc.

33 3550 Arapahoe Ave Boulder 8,897 2nd Napa Auto Parts Gibbons-White, Inc. Gibbons-White, Inc.

34 Sherman Station Longmont 8,500 3rd N/A N/A Nova Realty & Investments Inc.

35 Chambers Square Aurora 8,500 1st House of Rentals Direct Deal Freund & Company

36 3120 Vista Village Dr East I-70/Montbello 8,400 4th Super Dollar Store Mitchlen Properties LLC Mitchlen Properties LLC

37 9230 Sheridan Blvd Northwest Denver 8,397 2nd Musicians Superstore N/A Centro Properties Group

38 Fairways Plaza - Bldg B Arapahoe Rd 8,385 3rd Colorado Casual Direct Deal Fuller Real Estate

39 Tabor Center - Retail Central Business District 8,314 3rd Tilted Kilt N/A CB Richard Ellis

40 227 S College Ave Fort Collins/Loveland 8,288 3rd N/A N/A Realtec Commercial Real Estate Serv

Select Top Retail Leases Based on Leased Square Footage For Deals Signed in 2009


27/49



Denver Retail MarketSALES ACTIVITY

The Optimist Sales Index Average of Two Highest Price/SF's and Two Lowest Cap Rates

Source: CoStar COMPS

Sales Volume & Price Sales Analysis by Building SizeBased on Retail Building Sales of 15,000 SF and Larger Based on Retail Building Sales From Oct. 2008 - Sept. 2009Bldg Size # RBA $ Volume Price/SF Cap Rate

< 25,000 SF 164 1,103,987 215,101,299$ 194.84$ 8.05%

25K-99K SF 14 625,745 51,889,850$ 82.92$ 7.81%

100K-249K SF 3 451,362 37,100,000$ 82.20$ 8.33%

>250K SF - - - -$ -

Source: CoStar COMPS Source: CoStar COMPS

U.S. Price/SF Comparison U.S. Cap Rate ComparisonBased on Retail Building Sales of 15,000 SF and Larger Based on Retail Building Sales of 15,000 SF and Larger

Source: CoStar COMPS Source: CoStar COMPS

$30

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$150$170

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DollarsperSF

Denver US

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M

illionsofSalesVolumeDollars

$0

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Price/SF

Sales Volume Price/SF

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2006 4q 2007 1q 2007 2q 2007 3q 2007 4q 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q

CapRatePercentage

$0

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Dollars/SF

Cap Rate Price/SF

3.0%

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2004

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2005

2q

2005

4q

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2q

2006

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CapRatePercentage

Denver US


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SALES ACTIVITY


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SALES ACTIVITY

Select Land Sales Based on Commercially Zoned Land Sales Occurring From Oct. 2008 - Dec. 2009

7950 S Dayton St, Centennial 1265 Opie Dr, Littleton 2870 28th St, Boulder

Sale Price: $10,250,000 Sale Price: $6,185,000 Sale Price: $3,999,805Acres: 13.65 Acres: 14.21 Acres: 0.64Price/SF: $17.24 Price/SF: $9.99 Price/SF: $142.85C osing Date: 12/23/2008 C osing Date: 10/21/2008 C osing Date: 08/14/2009Zoning: PUD Zoning: TC Zoning: UnknownIntended Use: General Freestanding Intended Use: General Freestanding Intended Use: Hold for DevelopmentBuyer: I ea Property Inc Buyer: Target Corporation Buyer: Wa greens Co.

Seller: Miller Global Properties LLC Seller: Denver Technological Center Seller: Pedersen Development Company LLC

9200 W Colfax Ave, Lakewood S Lima St, Centennial 24400 E Smoky Hill Rd, Aurora

Sale Price: $3,150,000 Sale Price: $1,500,000 Sale Price: $1,436,700Acres: 4.44 Acres: 3.40 Acres: 1.13Price/SF: 16.29 Price/SF: 10.13 Price/SF: 29.19Closing Date: 03/18/2009 Closing Date: 05/27/2009 Closing Date: 07/28/2009Zoning: C-2, Denver Zoning: PD Zoning: PD, AuroraIntended Use: Bank Intended Use: Retail Intended Use: Fast FoodBuyer: Garrison Station Development Buyer: CEBFA Storage I LLC Buyer: Gaube AlbrechtSe er: Mic e son Properties LLC Se er: Asset Rea ty A visors Se er: ServiceStar Deve opment Company, L

Source: CoStar COMPS


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MARKET HIGHLIGHTS CLASS A, B & CA U R O R A M A R K E T

Deliveries, Absorption & Vacancy Historical Analysis, All Classes


Vacant Space Quoted Rental RatesHistorical Analysis, All Classes Historical Analysis, All Classes


Net Quoted

Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates

2009 4q 845 16,440,674 1,715,436 10.4% (29,539) 2 5,606 2 30,324 $13.36

2009 3q 843 16,435,068 1,680,291 10.2% 35,191 1 26,000 3 27,606 $13.93

2009 2q 842 16,409,068 1,689,482 10.3% 930 3 27,793 3 31,606 $14.14

2009 1q 839 16,381,275 1,662,619 10.1% 39,193 9 201,308 4 29,204 $13.05

2008 4q 830 16,179,967 1,500,504 9.3% 96,749 3 18,567 13 230,512 $13.13

2008 3q 827 16,161,400 1,578,686 9.8% 37,141 2 9,418 13 221,286 $12.94

Costar Denver Retail Report

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Transcript of Costar Denver Retail Report