The 2012 ICSC West Florida Spring Retail Report by ridwanrreyza

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									        The 2012 ICSC
 Florida Spring Retail Report




                   February 16–17
                   Tampa Convention Center
West Florida       Tampa, FL
Conference 2012
                            Keynote Presentation
      Friday, February 17, 2012 10:45am - 11:30am
     A panel of leading industry executives will be speaking about the most significant
    trends in today’s market. The executives will discuss macro trends that are at play
     both nationally and in Florida as well as factors that are impacting the market in
                              various regions across the state.




                       John Crossman                        David Conn
                       Crossman & Company                      CBRE




      Eric Zimmermann                       Mitchell Rice                Jonathan Levy
          Eastdil Secured               RMC Property Group            Redstone Investments




                              rePort Coordinator
                                      Melissa Grether
                                     Crossman & Company
                                   mgrether@crossmanco.com



2
                                     Table oF ConTenTs
Economic overview ..................................................................................................4
Capital Markets Overview.........................................................................................8
The Capital and Deal Markets: Fueled For Growth..............................................10
2012: A Year of Optimism? .................................................................................. ....12
UF Survey of Emerging Conditions........................................................................14
The future of mixed-use development ..................................................................16



The Panhandle.........................................................................................................17
Tallahassee...............................................................................................................18
Jacksonville...................................................................... ........................................20
Ocala / Gainesville..................................................................................................22
The Villages..................................................................................................... .........23
Daytona Beach / Volusia ........................................................................................24
Orlando...................................................................................................................25
Pasco / Hernando......................................................................................... ...........28
Lakeland / Polk.................................................................. ......................................29
Tampa / St. Petersburg............................................................................................30
Sarasota / Bradenton.............................................................................................32
Martin / St. Lucie.....................................................................................................33
Fort Myers / Cape Coral...................................................................................... ....34
Naples / Collier........................................................................................................36
Palm Beach...............................................................................................................38
Broward / Ft. Lauderdale.......................................................................................40
Miami........................................................................................................................42




Written Report Authors.......................................................................... ...............44
Additional Contributors........................................................................................45


                                                                                                                                  3
                                                  Economic Overview
                                                  19.1 Million People (2011 Census Bureau)
                                                  Over 432 Million SF of Shopping Centers



$15.29
average rental rate

falling from the peak of
over $19 in 2008



89.54%
occupancy
steady since early 2010
                                                                                                 “While our industry continues to
                                                                                                 face challenges related to economic
                                                                                                 weakness, the recovery (positive GDP
10.0%
unemployment
                                                                                                 growth), virtually no new supply,
                                                                                                 and a growing population appear
                                                                                                 to be more than offsetting these
                                                                                                 challenges and we are seeing real
                                                                                                 improvements in rents, occupancy,
                               unEMpLOyMEnt RatE: uS vs FLORiDa                                  and leasing spreads. A recent RBC
                                 14.5
                                                                                                 analysis is particularly encouraging
                                 12.5                                                            as it reports that its research base
                                                    Florida     US                               of 2,200 retailers plan a total of
                                 10.5
                                                                                                 approximately 72,000 new store
                                  8.5                                                            openings over the next 24 months”
                                  6.5                                                                                       - David Henry
                                  4.5
                                                                                                             ICSC Chairman & Kimco Realty

                                  2.5




                               Source: US Department of Labor




    StatEwiDE HiStORiCaL REnt & OCCupanCy
     95%
     94%                                                                                $19.00
                                                                          Occupancy
     93%                                                                  Rental Rate   $18.00
     92%
     91%                                                                                $17.00
     90%
     89%                                                                                $16.00
     88%
                                                                                        $15.00
     87%
     86%                                                                                $14.00


    Source: Power Center & Shopping Center Statistics from CoStar Property Report



4
                            SOutH FLORiDa GROCER MaRkEt SHaRE

                                            Retailer                       % Mkt.
                                                                                                               wESt/CEntRaL FLORiDa GROCER MaRkEt SHaRE
                           1    Publix                                     54.50%
                           2    Winn-Dixie                                 14.10%
                           3    Walmart                                    11.40%                                                    Retailer                        % Mkt.
                                                                                                               1      Publix                                         42.60%
                           4    AG Florida                                  7.10%
                                                                                                               2      Walmart                                        25.80%
                           5    Sedano's                                    2.60%
                                                                                                              3       Winn-Dixie                                      9.60%
                           6    Super Target                                2.30%
                                                                                                              4       Sweetbay                                        7.20%
                           7    Whole Foods                                 2.30%
                                                                                                              5       Super Target                                    2.70%
                           8    Southeast Wholesale                         2.00%
                          Source: The Mulitcultural Economy 2010
                                                                                                              6       Costco                                          4.14%
                          Includes: Miami, Ft. Lauderdale, West Palm Beach MSA's                              7       Super Target                                    2.91%
                                                                                                              8       Save-A-Lot                                      2.60%
                                                                                                              9       AG Florida                                      1.05%
                                                                                                              10      Aldi                                            1.00%
                                                                                                             Source: The Multicultural Economy 2010
                                                                                                             Includes: Tampa, Orlando, Ft. Myers, Saint Lucie MSA's




                                                                                                  nORtH FLORiDa GROCER MaRkEt SHaRE

                                                                                                                       Retailer                             % Mkt.
                                                                                                  1    Walmart                                              29.30%
                                                                                                  2    Publix                                               28.60%
                                                                                                  3    Winn-Dixie                                           17.40%
                                                                                                  4    Food Lion                                             8.00%
                                                                                                  5    SUPERVALU                                             2.10%
                                                                                                  6    Save-A-Lot                                            1.60%
                                                                                                  7    Super Target                                          1.40%
                                                                                                  8    Ira Higdon                                            1.00%
                                                                                               Source: The Multicultural Economy 2010
                                                                                               Includes: Jacksonville, Daytona Beach, Tallahassee, Albany,
                                                                                               Brunswick MSA's




“As the ICSC State Director for Florida, I’m happy to say, the
reports of retail’s death were greatly exaggerated.

Although business is not where we would like for it                                StatEwiDE REtaiL FunDaMEntaLS
to be, there are certainly some very positive signs of
improvement. The ICSC Deal Making conferences are                                  96%                                                                                $24.00
showing a 10-20% attendance increase, indicated people
                                                                                                                  Occupancy

                                                                                   94%                            Rental Rate                                         $21.00
are getting much more active.
                                                                                   92%                                                                                $18.00
It has been several years since any new product has come                           90%                                                                                $15.00
on line and this is starting to slowly develop a pent-up
demand for new space. A number of projects that were                               88%                                                                                $12.00
put on hold several years back are being taken off the shelf                       86%                                                                                $9.00
and dusted off with many being reconfigured and shown
with a different tenant line-up”                                                   84%                                                                                $6.00

                                                         - Dale Scott
                           ICSC Florida Director, Sikon Construction               Source: Power Center & Shopping Center Statistics from CoStar Property Report




                                                                                                                                                                               5
                                                                                                “There is continuing evidence, with both Mom &
                                                                                                Pop and national retailers, those that are offering
                                                                                                ‘value’ in their category, or catering to their core
                                                                                                demographics/customer, are showing signs that
                                                                                                business is improving, albeit, in modest and
                                                                                                reasonable measurements. Those with financial
                                                                                                resources are pro-actively looking for and taking
                                                                                                advantage of expansion and growth opportunities”

                                                                                                                                                   - Daniel Taub
                                                                                                                                           DLC Management Corp




    RECEnt SHOppinG CEntER SaLES
    Property Name                            City                   Anchor                                  SF    Sale Date   Buyer                             Seller
    Grand Oaks Village                       Orlando                Fresh Market                           86,321 Nov-11      Kimco Realty Corp.                Private Seller
    South Wind Plaza                         West Palm Beach        Foodtown Supermarket, Family Dollar   123,953 Nov-11      Private Buyer                     LNR Property Corporation
    The Center at Sawgrass                   Plantation             hhGregg                                57,003 Nov-11      Dacar Management                  Starpoint Commercial Properties
    Jacaranda Plaza                          Fort Lauderdale        Publix, Stein Mart, Party City        173,024 Nov-11      Ram Real Estate                   Cohen Commercial Properties
    Publix at Brooker Creek                  Palm Harbor            Publix                                 77,596 Oct-11      Publix Supermarkets               DDR JV TIAA-CREF
    Point Plaza                              Port Richey            Beall's , Bealls Outlet, TJ Maxx      209,714 Oct-11      RCG Ventures                      DDR
    Riverstone Shoppes                       Parkland               Bassett Furniture                      61,698 Oct-11      Private Buyer                     Private Seller
    Pines Plaza                              Hollywood              Office Depot, buybuy Baby, Aldi        68,170 Oct-11      The Morris Companies              Wachovia
    Aventura Square                          Miami                  Old Navy, Bed Bath & Beyond, DSW      113,450 Oct-11      Equity One                        Turnberry Associates
    Broadway Promenade                       Sarasota               Publix                                 53,375 Oct-11      Stoltz Properties                 JV RAM Realty & RMC Property
    Towne Center Plaza                       Orlando                Jo-Ann Superstore, Books-A-Million     82,098 Oct-11      Private Buyer                      Edens & Avant / JP Morgan
    Osceola Village Shopping Center          Kissimmee              Publix, hhGregg                       116,645 Oct-11      Thompson National Properties      JPM Chase Bank
    Island Estates Plaza                     Clearwater Beach       Publix                                 50,046 Oct-11      Publix Supermarkets               DAM Properties
    Intracoastal Mall                        North Miami Beach      Winn-Dixie, TJ Maxx, Theater          234,000 Sep-11      Canyon Capital / Debartalo        Bank of America
    Union Planters Plaza                     Fort Lauderdale        Whole Foods Market, Dick's            155,771 Sep-11      Edens & Avant                     Wharton Realty
    Parkhill Plaza                           Miami                  Winn-Dixie, McDonald's, Dollar Tree   120,101 Sep-11      Kimco Realty Corp.                Private Seller
    Uptown Station                           Fort Walton Beach      Winn-Dixie, Ross, Party City          300,194 Aug-11      Victory Real Estate Investments   Private Seller
    Sample Plaza                             Pompano Beach          Save A Lot, Dollar General             66,613 Aug-11      Private Buyer                     Kimco Realty Corp.
    Shenandoah Square                        Fort Lauderdale        Publix, Walgreens, Dollar Tree        123,646 Aug-11      Global Fund Investments           Ramco-Gershenson Properties
    Sunshine Plaza                           Fort Lauderdale        Publix, Old Time Pottery              237,026 Aug-11      Global Fund Investments           Ramco-Gershenson Properties
    Kings Ridge Shopping Center              Clermont               Publix                                 78,979 Aug-11      Prudential RE Investors (PREI)    Ezon Inc
    Summerlin Crossings                      Fort Myers             Publix                                 89,321 Aug-11      Prudential RE Investors (PREI)    Ezon Inc
    Shops at North Cape                      Cape Coral             Publix                                 79,253 Aug-11      Prudential RE Investors (PREI)    Ezon Inc
    Santa Barbara Center                     Cape Coral             Publix                                103,259 Aug-11      Prudential RE Investors (PREI)    Ezon Inc
    Harbour Village                          Jacksonville           Stein Mart, The Fresh Market          112,821 Aug-11      Global Fund JV MMG Equity         Private Seller
    Crystal Lake Plaza                       Orlando                Winn-Dixie                             51,920 Aug-11      Private Buyer                     Orange Bank of Florida
    Sea Plum Town Center                     Jupiter                Publix, Starbucks                      61,112 Aug-11      Taggart Realty                    Monroe's Prestige Group
    Source: Real Capital Analytics, HFF, L.P., and Crossman & Company Proprietary Research




6
uS RESiDEntiaL HOuSinG StaRtS (thousands)                                                         uS ExiStinG HOME SaLES
           600
                                                                                                   6.50                                                          Existing Home Sales    $224,000
                                                                                                                                                                 (Millions)
           500
                                                                                                   6.00                                                          Median Sale Price      $212,500
           400                                                                                     5.50                                                                                 $201,000

           300                                                                                     5.00                                                                                 $189,500
                                                                                                   4.50                                                                                 $178,000
           200
                                                                                                   4.00                                                                                 $166,500
           100
                                                                                                   3.50                                                                                 $155,000


Source: US Census Bureau                                                                          Source: National Association of Realtors




                                                                                    Capital has been chasing deals in the Big 6 ma-
                                                                                    jor markets and has bid prices up to pre-crash
                                                                                    levels. Good news for us in the SE, equity and
                                                                                    debt sources are now pursuing deals in the sec-
                                                                                    ondary and tertiary markets. Where we can see
                                                                                    positive population growth, positive job growth,
                                                                                    we will be active lenders in 2012. CMBS lenders
                                                                                    are becoming very active again and the Industry
                                                                                    projects to close $50 Billion of securitized loans in
                                                                                    2012. Life Companies will be looking to close at
                                                                                    least $50 Billion in 2012 and we see more banks
                                                                                    venturing back into new construction loans, on a
                                                                                                                  conservative basis.
                                                   COnSuMER COnFiDEnCE: uS vs FLORiDa
                                                                                                                                                                                 - Kieran Quinn
                                                   90
                                                                                                                                                                           Guggenheim Partners
                                                   85                                   US
                                                                                        Florida
                                                   80
                                                   75

“Consumers continue to be cautious                 70
and pessimistic about their own                    65
spending, which is also affecting the
                                                   60
rate of fundamental improvement”
                                                   55
                                  - Tim Becker
                           University of Florida
                                                   US Data Source: University of Michigan Survey of Consumers / Florida Dada Source: University of Florida


                                                                                                  HiStORiC GaS pRiCES: uS vs FLORiDa
                                                                                                      $4.50
tOtaL uS nEw autOMObiLE SaLES
                                                                                                                                       US
             215,000
                                                                                                      $4.00
                                                                                                                                       Florida

             205,000                                                                                  $3.50
             195,000
             185,000                                                                                  $3.00
             175,000
                                                                                                      $2.50
Millions




             165,000
             155,000                                                                                  $2.00
             145,000
                                                                                                      $1.50
             135,000
             125,000

                                                                                                  Source: US Department of Energy - US Energy Information Administration

Source: US Census Bureau

                                                                                                                                                                                                  7
Courtesy of HFF, L.P. (Holliday Fenoglio Fowler,                     will rise leading to a corresponding rise in cap rates, REITs
L.P.) Retail Capital Markets Team                                    looking to ‘recycle’ capital or prune their portfolios.

Capital Markets trends                                                natiOnwiDE CapitaL MaRkEtS tREnDS
The U.S. commercial real estate equity market increased its              $60.0                                                   8.25%
appetite for retail considerably in 2011 vs. 2010 with $42.4
                                                                                                  Rolling 12-Mo Volume
                                                                                                  (In Billions)
                                                                         $50.0
billion in sales of significant retail properties. This volume                                    Average Cap Rate
                                                                                                                                 7.75%
was a 91% increase over 2010, demonstrating the largest gain             $40.0
among all property types including Hotel, Office, Industrial             $30.0                                                   7.25%
and Multifamily. Nearly 3,400 properties traded with a
greater percentage of portfolio transactions than any year               $20.0
                                                                                                                                 6.75%
in the last ten years. Portfolio trades totaled $17.1 billion or         $10.0
nearly 40% of the total volume highlighted by the nearly $9.4
billion Centro acquisition by Blackstone, as well as, interests           $0.0                                                   6.25%

in large regional mall portfolios.
                                                                       Source: Real Capital Analytics

Capital is still primarily focused on opportunities at either end
of the risk spectrum—core or distressed—creating a ‘bar-bell’        who are the buyers?
effect on demand. A scarcity of desirable product combined           Broker-dealer funds, private REITS for core product that
with an abundance of uncommitted capital has created a               are flush with cash, foreign investors for trophy quality
highly competitive investment market for both stabilized             assets in major seaboard markets, High Net Worth private
and quality distressed assets. In addition to fund allocation        investors, public REITs with capital from successful offerings
requirements, demand is also being driven by investors that          in 2011 and right-sized balance sheets, as well as institutional
are using real estate as a hedge against inflation or by investors   investors have largely dominated the investment landscape.
that are taking advantage of reduced pricing as in many cases;       Opportunistic funds are also plentiful and ready to pounce on
CRE values have dropped nearly 30% from peak pricing. The            distressed assets. The top 5 buyers by dollar volume in 2011
increased data points of comparable transactions have made           in the Retail sector were Blackstone, followed by non-traded
buyers, sellers, and debt providers feel more comfortable in         REITs Inland Real Estate and Cole Real Estate Investments. The
their valuations leading to the narrowing of bid vs. ask spread      next five largest were all listed REIT’s.
and eventually to more closings.
                                                                     StatEwiDE CapitaL MaRkEtS tREnDS
Despite economic concerns, both in the U.S and abroad,                  $4.5                                                    9.0%
the debt markets have shown new life in the beginning of                                              Rolling 12-Mo Volume
                                                                                                      (In Billions)             8.5%
2012 after hesitation in the second half of 2011 with new                                             Average Cap Rate

and existing capital sources desiring to compete for strong             $3.0                                                    8.0%
sponsorship and prime real estate. Banks and life insurance                                                                     7.5%
companies have been increasing their leverage levels,
tightening spreads and starting to provide interest only on             $1.5                                                    7.0%
partial or full term for the ‘best of the best’ deals.                                                                          6.5%

Concerns moving forward still revolve around job growth                 $0.0                                                    6.0%

– one of the most important factors to commercial real
estate success - although good news did come in the form of          Source: Real Capital Analytics

breaking the 10% unemployment rate in Florida which now
stands at 9.9%. The fear of inflation, rising energy/oil prices,     what is Current Equity pricing?
regulatory changes, fears regarding rising costs in health care      REITs raised a record $51 billion of equity and debt in 2011
could and pending presidential election could hamper the             according to NAREIT and outperformed the benchmark stock
positive momentum if shown to be true.                               indices for 2011. Investors are still seeking ‘best in class’ assets
                                                                     but have more pricing clarity due to increased data points in
who are the sellers?                                                 the market for sales of comparable assets and competition for
Banks and Servicers thru note sales and REO, Pension Funds           limited product in the market for sale. Health ratios on tenants
adjusting allocations, JV Partnerships that are dissolving or        with above market rents, delinquent balances, or near-term
need a liquidity event, Institutional Funds at the end their hold    rollover are still being critically analyzed, but adjustments are
periods, merchant builders particularly groups with maturing         being made on a tenant-by-tenant basis rather than a very-
construction loans, private owners that believe interest rates       conservative broad-brush approach.

8
Cap rates are being driven by positive leverage which is helped                what is next?
by lower interest rates providing solid yields. Institutional                  Fundamentals have continued to stabilize from an occupancy
investors are focused on a combination of the current cash-                    and rental rate perspective. Transaction volume will likely
on-cash yields and internal rates of return (IRR). Private client              continue as an upward trend pending the availability of
investors are being driven by cash-on-cash yields, discount to                 financing from the debt markets. Cap rates have compressed
replacement costs and ‘price per pound.’ For most investors                    considerably and for some retail asset classes have fallen to
running IRR metrics, reversionary cap rates are being set at 50                the aggressive leverage-fueled levels of 2006 and 2007 for
to 75 bps above the going-in cap rate.                                         Tier I markets on Core product. This will eventually lead to
                                                                               yield-driven investors being priced out of Tier I markets and
Current unleveraged / leveraged discount rates are                             turning to secondary markets as an opportunity for greater
approximately:                                                                 returns.
     •     Core: 6.5% - 7.5% / 7.5% - 9.0%                                     On the distressed side, the demand is very strong pricing the
     •     Value Add: 8.0% - 10.0% / 10.0% - 16.0%                             ‘opportunity’ out of many of the deals due to competition.
     •     Opportunistic: 12.0+% / 16.0+%                                      Many properties are producing positive cash flow again after
                                                                               several years of fighting for occupancy and increased rental
who are the Lenders?                                                           rates. Distressed retail is now over 50% worked out according
For core stabilized assets, Life Companies, Banks, and CMBS                    to RCA which should only increase pricing as demand remains
lenders have returned to the Florida market. According to                      strong for a limited amount of product.
CoStar, the second quarter of 2011 saw commercial mortgage
loan originations that were 107% higher than second                            Development financing options have returned for select
quarter 2010 and the prevailing thought is that the first half                 multifamily deals, however, has remained scarce for other
of 2012 will be even more robust. CMBS lending totaled                         commercial product types such as retail. Will development
approximately $30-$35 billion in 2011, many predict CMBS                       debt/equity become more prevalent in 2012? It is unlikely
to execute north of $50-$60 billion in 2012. A CMBX index                      that the volumes will be robust in the near term but unique
of ‘CMBS 2.0’ will help issuers and investors hedge their risk.                product in strong markets could find their way off the drawing
For assets that require a turnaround or are not stabilized at                  board.
market occupancy, balance sheet lenders such as banks and
debt funds are the primary sources for this type capital.

what is Current Debt pricing?
Best-in-class sponsorship and reliability of tenancy/income
is paramount to obtaining aggressive financing. Real-time
current lender underwriting parameters for permanent
financing include:

                         Life Companies              CMBS                                        Debt Funds                              Banks
Description:                           CMBS shops are very active and
                     The vast majority of Life                                          Mortgage REITs, and private        Nationals/regionals most active;
                                            issuing quotes to fill up
                Companies have increased their                                         equity funds are providing debt       some local banks re-entering
                                        securitization buckets that are
                 allocations for 2012 by +/-20%                                           as senior, mezz and note              competitively. Several
                            over 2011. scheduled for late first quarter                           financing               nationals/regionals offering non-
 CuRREnt DEbt CapitaL SOuRCES anD pRiCinG Underwriting metrics that
                                      2012.                                                                               recourse financing for very select
                                          retreated in late 2011 have                                                       assets with strong sponsorship
                                            returned to begin 2012.                                                         and low leverage. Considering
                                                                                                                          development for 'special' projects

Max LTV:                   70% LTV                     80% LTV (w/ mezzanine)                     85% LTV                             65% LTV
                                                          65%-70% (without)
All-In-Rates:          3.40 - 5.25% (fixed)               4.90 -5.75% (fixed)            6.25 - 8.00% (fixed/floating)     3.00 - 5.50% (floating or fixed)
Fees:                      Mostly PAR                         Mostly PAR                            Varies                               NA
Debt Yields:                  9 - 10%                            9-11%                              Varies                               NA
Term/Amort:     5-10 year terms; amortization of   5-10 year terms; amortization of    2-5 year terms; interest-only or   3-5 years; amortization of 25-30
                  30 years. Some interest-only     30 years. Full-term interest-only       amortization of 30 years                    years
                   periods available for lower        periods available for lower
                     leverage loan requests             leverage loan requests
Loan Size        $5-$300 MM; most fall under        $10 MM; no upper limit (some          $10 MM; no upper limit            $1-$30 MM without need to
Preference:               $100 million                will consider $5 MM min.)                                               syndicate; no limit with
                                                                                                                                    syndication

                                                                                                                                                              9
              university of Central Florida
              58,000 Students
              Home of the Dr. P. Phillips School of Real Estate




                                                             UCF is now the 2nd largest
                                                             university in the United States
                                                             by enrollment.



           The Capital and Deal Markets:
           Fueled for Growth
           Randy Anderson, Ph.D., CRE
           Howard Phillips Eminent Scholar Chair and Professor of Real Estate
           University of Central Florida

           Joshua Harris, MBA, CAIA
           Director and Ph.D. Candidate, Dr. P. Phillips School of Real Estate
           University of Central Florida

           We start off the New Year with many reasons to be optimistic about the economy and real
           estate markets. Job growth as actually began to sustain in many private sector industries;
           further, business leaders are becoming more optimistic according the Conference Board.
           Perhaps most telling, retail sales set record highs this December despite consumer confidence
           remaining relatively low. Many are perplexed by this given the still high rate of unemployment
           (8.5% according to the Bureau of Labor Statistics at the time of writing). Exhibit 1 shows that
           disposable income is at an all-time high; yes higher than before the recession, according to the
           Bureau of Economic Analysis. Thus, the reality is that in aggregate we are earning more and
                                               spending more; much of this likely the result of powerful
     UCF’s real estate department was          demographic trends such as a growing population and
     founded in 2005 with the help and         increased immigration.
     funding of the Dr. Phillips Foundation
     and the Central Florida NAIOP Chapter.
     They now have both undergraduate
     and Masters degrees in real estate
     available.

10
10 yEaR tREaSuRy RatE SitS at HiStORiC LOwS
 7%                                                                                                    DiSpOSabLE inCOME at aLL tiME HiGHS
 6%                                                                                                                 $12
                                                                                                                    $12
 5%
                                                                                                                    $11
 4%                                                                                                                 $11
                                                                                                                    $10
 3%




                                                                                                        Trillions
                                                                                                                    $10
 2%                                                                                                                  $9
                                                                                                                     $9
 1%
                                                                                                                     $8
             '00     '01      '02      '03     '04      '05     '06   '07   '08   '09   '10     '11                  $8

Source: U.S. Board of Governors of the Federal Reserve System                           Exhibit 2
                                                                                                                     $7

                                                                                                                          '00     '01      '02     '03   '04   '05   '06   '07   '08   '09    '10
              Investors appeared to believe this economic
              assessment as it is estimated that over $200                                              Source: U.S. Bureau of Economic Analysis                                             Exhibit 1

              billion dollars of transaction volume was                                               allowing them to remain in “extend and
              completed in commercial real estate during                                              pretend” limbo for protracted periods of time.
              2011 according to Real Capital Analytics; this                                          Lenders feel more comfortable disposing
              is projected to grow to over $300 billion in                                            assets because the recovery in fundamental
              2012, which is roughly a 50% year over year                                             rental rates and occupancy levels as combined
              increase. The increase in transaction volume                                            with low cap rates have actually caused real
              is due to multiple factors. First, the stabilized                                       estate prices to recover significantly for
              economy has alleviated most fears of a double                                           many stabilized properties. Thus, the banks
              dip recession occurring anytime soon. Second,                                           are liquidating at far less of a discount than
              yields on bonds and other fixed income                                                  previously thought possible.
              securities have remained shockingly low. In
              fact, the yield on ten year treasuries is sitting at                                    In conclusion, we expect 2012 to be a better
              historic lows and may remain as such for much                                           year than 2011 (which was not bad) on almost
              of 2012 (See Exhibit 2); this alone is making                                           all fronts. Still Europe is the big unknown as
              debt on real estate very cheap when available.                                          is the fate of our domestic political system;
              Third, global investors are seeing the U.S. as a                                        at least we will have some clarity come
              good investment location, relative to Europe                                            November in this matter. The biggest risk
              at least. Finally, lenders who have taken back                                          for the long term is cap rate decompression
              a significant volume of distressed assets are                                           if interest rates rise significantly; investors
              beginning to actually sell these assets versus                                          should factor this into their analyses.




                                                                                                                                                                                                         11
                          Florida State university
                          41,000 Students
                          Home of the Center for Real Estate Education & Research




                FSU’s real estate program was named #2 in
                the world for their research by the Journal
                of Real Estate Finance and Economics.
                                                              “We know that by traditional
                                                            measures the great recession is
                                                            over, yet consumer confidence is
                                                            low and the unemployment rate
     2012: A Year of Optimism?                              remains high”

     Dean Gatzlaff
     Mark Bane Professor and Center Director, Center for Real Estate Education & Research, Florida State
     University

     It is a presidential election year, and these years (with of course the exception of 2008) have often
     been good for the markets. So let’s look at the major market trends. By traditional measures the
     great recession is over and it appears that a double dip feared in 2011 has been avoided. Still,
     real estate markets have been sluggish this past year. On average, house prices rose about 0.2%
     nationally in 2011 (S&P Case-Shiller), while commercial property prices (Moody’s/REAL) ended the
     year (through Nov.) down -1.5% after trending up during the second half (Fig. 1). Thus, recovery in
     the real estate market continues to be “anemic.” Consistent with the real estate market, annual
     price changes in the stock (S&P 500) and REIT markets were relatively small at 1.9% and 4.3%,
     respectively. Both markets experienced moderate price increases during the first half of 2011
     followed by price declines in the second half (Fig. 1).

     Still, there are good reasons to be optimistic about 2012. While the national unemployment rate
     remains high (8.5%) it has persistently trended down from its high point of 10.1% in October of
     2009 and is currently at its lowest level in nearly three years. This trend is also seen in Florida,
     where the unemployment rate in Dec. (yet to be reported as of this writing) will possibly drop
     below 10.0%, after seeing rates at 12.0% just one year ago. Most economists expect increases in
     hiring and decreases in unemployment to continue, barring any unforeseen economic surprises.

12
REaL EStatE pRiCE inDiCES

                                                                                                 tREnDS in COnSuMER SEntiMEnt & SpEnDinG
                          3.00



                                 US COMMERCIAL (Moodys/REAL)
                          2.50
                                 Equity REITs                                                    140.00                                               10.00%
Index Level (2000=1.00)




                                 HOUSING (S&P Case-Shiller)
                                 S&P500                                                                                                               8.00%
                          2.00                                                                   120.00


                                                                                                                                                      6.00%
                                                                                                 100.00
                          1.50
                                                                                                                                                      4.00%
                                                                                                  80.00
                          1.00                                                                                                                        2.00%
                                                                                                          Consumer Sentiment (left axis)
                                                                                                  60.00
                                                                                                                                                      0.00%
                          0.50                                                                            Year-to-Year Chg in Consumer Spending
                                                                                                          (right axis)
                                                                                                  40.00
                                                                                                                                                      -2.00%


                                                                                                  20.00                                               -4.00%
                                                                                     Figure 1


                                                                                                                                                  Figure 2




                                 “Households      have      been
                                 very successful at ridding
                                 themselves of debt and their
                                 balance sheets, as a whole,
                                 have     been     substantially
                                 strengthened.       Household
                                 debt is at pre-recession levels.            Perhaps fueled by the small gains in employment, consumer
                                 There have been gains in                    sentiment and spending have trended upward more recently
                                 household wealth, particularly              (Fig. 2). Households and firms continue to rid themselves of debt
                                 for those above the median                  and their balance sheets, as a whole, have been substantially
                                 income level”                               strengthened over the past year. And while the share of
                                                                             households with mortgages in distress and foreclosure remains
                                                      high, the share of households entering distress or foreclosure continues to drop.
                                                      Finally, while price volatility in gas and food prices will likely continue, economists
                                                      anticipate “core” inflation to rise at a modest annual rate of 1.5% to 2.5% in 2012.
                                                      All of this bodes well for the coming economic year; however, there are also good
                                                      reasons to be concerned. The combined federal deficit and debt is unsustainable; the
                                                      economy remains susceptible to oil price shocks; and financial issues with possible
                                                      U.S. contagion effects continue within the European community.




                                                                                                                                                         13
                            university of Florida
                            52,000 Students
                            Home of the Bergstrom Center for Real Estate Studies




                                                                                   UF’s real estate program was
                                                                                   named #3 in the world for their
                                                                                   research by the Journal of Real
                                                                                   Estate Finance and Economics.
     UF Survey of Emerging Market Conditions:
     Q4, 2011
     Dr. Wayne Archer
     Executive Director and Professor of Real Estate, Bergstrom Center for Real Estate Studies
     University of Florida

     Retail Summary & Conclusions
     Retail occupancy expectations declined for three of the four retail sectors this quarter with only free-
     standing retail improving. Respondents continue to believe however that occupancies will remain
     stable at current levels for all sectors. The expectations for rental rates followed a similar pattern to
     the occupancy outlook. Respondents continue to believe that rental rates will lag inflation in the near
     term. Cap rates continue to stabilize across retail property types with the exception of strip centers
     which increased this quarter. Expectations for future cap rates continue moving toward a declining cap
     rate environment. The investment outlook in retail remained positive for all sectors but large retail with
     declined to a mixed time to buy.

     Expected Occupancy
     Improvements in employment and consumer confidence are providing a boost to the retail sector.
     Respondents continue to say that quality national retailers are looking for prime locations to expand. The
     expansion plans may be a year or two away but they are looking to lock in locations early. This is showing
     up in the expectations for occupancy as all four segments of the retail sector improved. Expectations for
     Neighborhood Center occupancy reached a survey high with others approaching their survey high.

     Yields
     Required yields decreased this quarter for neighborhood centers and free standing retail. Neighborhood
     center yields dropped 80bps to 9.5%. Free standing yield dropped 30 bps to 9.5%. Large centers and strip
     centers saw their yields increase to 9.6% and 12% respectively. Expectations for future yields continue
     to indicate there will be little to no change in future yields across all property types.



14
OutLOOk FOR OCCupanCy: REtaiL
                                                                                                                                                                  Expected Rental Rates
Expecting
 Increase




              0.4                                                                     Large Centers
                                                                                      Neighborhood Centers                                                        Expectations for rental rates continued to
              0.2
                                                                                      Strip Centers
                                                                                                                                                                  improve this quarter as respondents are gradually
                                                                                                                                                                  starting to believe that rental rates will rise at
                                                                                      Free Standing
 Expecting
No Change




                0                                                                                                                                                 the rate of inflation for all property types in the
                         Q3 2007


                                        Q1 2008


                                                          Q3 2008


                                                                         Q1 2009


                                                                                             Q3 2009


                                                                                                         Q1 2010


                                                                                                                       Q3 2010


                                                                                                                                          Q1 2011


                                                                                                                                                       Q3 2011
              -0.2                                                                                                                                                retail sector. Core, quality properties continue
                                                                                                                                                                  to benefit from increased demand and lower
              -0.4                                                                                                                                                rents over the past several years have attracted
Decrease
Expecting




              -0.6
                                                                                                                                                                  retailers to move up. Respondents indicate that
                                                                                                                                                                  leasing activity has grown tremendously over the
              -0.8                                                                                                                                                past year and expect that trend to continue as
 4Q 2011 University of Florida, Bergstrom Center for Real Estate Studies Survey of Emerging Market Conditions
                                                                                                                                                                  long as the economy and employment situation
                                                                                                                                                                  continue to improve.
OutLOOk FOR REntaL RatES: REtaiL
                                                                                                                                                                  Investment Outlook
 Expecting
  Increase




                     0
                              Q3 2007


                                            Q1 2008


                                                             Q3 2008


                                                                           Q1 2009


                                                                                              Q2 2009


                                                                                                         Q1 2010


                                                                                                                       Q3 2010


                                                                                                                                         Q1 2011


                                                                                                                                                     Q3 2011      Despite an improving outlook for occupancy
              -0.25

                                                                                                                                                                  and rental rates, respondents’ views on the
  Expecting
 No Change




                -0.5
                                                                                                                                                                  investment outlook declined across all four
              -0.75
                                                                                                                                                                  property types with neighborhood centers
                 -1                                                                                                                                               dropping the most. The drop in neighborhood
 Expecting
 Decrease




              -1.25
                                                                                                                                                                  centers indicates the lack of supply for quality
                                                                                                                                   Large Centers
                                                                                                                                                                  core assets. Grocery anchored centers have
                                                                                                                                                                  been a favored asset along with apartments for
                                                                                                                                   Neighborhood Centers
                -1.5                                                                                                               Strip Centers


                                                                                                                                                                  the investor. Regardless of economic conditions,
                                                                                                                                   Free Standing

              -1.75
 4Q 2011 University of Florida, Bergstrom Center for Real Estate Studies Survey of Emerging Market Conditions                                                     necessary spending on groceries helps keep
                                                                                                                                                                  these centers a float. Free standing retail is now
OutLOOk FOR invEStMEnt: REtaiL                                                                                                                                    the favored retail asset for investment with most
                1.2
                                                                                                                                                                  respondents believing this is a good time to buy.
                                                  Large Centers
                     1
                                                                                                                                                                  Retail Cap Rates
                                                  Neighborhood Centers
Good Time
  to Buy




                                                  Strip Centers
                0.8                               Free Standing

                0.6
                                                                                                                                                                  Cap rates increased slightly for neighborhood
                0.4
                                                                                                                                                                  centers and large centers, with both moving to
Mixed Time




                0.2
                                                                                                                                                                  8%. Rates for strip centers and free standing retail
  to Buy




                     0
                                                                                                                                                                  dropped going below 9% and 8% respectively.
                              Q3 2007


                                            Q1 2008


                                                              Q3 2008


                                                                            Q1 2009


                                                                                               Q2 2009


                                                                                                             Q1 2010


                                                                                                                         Q3 2010


                                                                                                                                           Q1 2011


                                                                                                                                                        Q3 2011




               -0.2                                                                                                                                               Slow continued improvement in the economy
Bad Time




                                                                                                                                                                  will keep cap rates at current levels over the next
 to Buy




               -0.4
               -0.6                                                                                                                                               year.
               -0.8
 4Q 2011 University of Florida, Bergstrom Center for Real Estate Studies Survey of Emerging Market Conditions




                                                                                                                                                                                                                         15
            the Future oF Mixed use develoPMent
                                By: toM harMer, senior viCe President, Pizzuti - naioP Board MeMeBer

Recognizing that its members were involved in many diverse             communities, living proximate to work, easy and close access to
types of commercial developments, in 2009 NAIOP expanded its           primary retail services (groceries, dining, etc.), and clustering of
focus from office and industrial real estate to include the retail     more density into key development areas.
sector as well as medical office and mixed use projects.               Expanding retailers continue to be selective so a mixed use site
                                                                       has to not only meet the locational requirements but also readily
Mixed use development typically combines multiple land                 meet other criteria that may include signage and branding, drive
uses, such as retail and office or retail and multifamily, into a      throughs, and other components that are standard on many
single project, and might include retail, office, medical office,      stand-alone outparcels but are challenging in a mixed use
and multifamily. Mixed use developments are favored in some            environment.
communities and can be encouraged through planning efforts,
but real estate fundamentals and the current market will dictate       Since the office market is likely to continue to see isolated
their long term success.                                               growth, many of the shorter term opportunities will be related
                                                                       to single-tenant build-to-suit projects, multifamily development,
Many types of projects could be classified as mixed use. The mix       and potentially some specific opportunities related to medical
of uses may be vertically integrated or be spread out horizontally     office. In the case of medical office there can be some demand
or a combination of both within an overall development site.           for some limited retail or medical related retail to serve the
                                                                       tenants and their patients and complement the office use, such
Vertical mixed use projects tend to be the most complicated.           as a pharmacy, or medical equipment storefront, etc.
The different market demands across sectors can be a challenge
for lease up and have varying absorption rates. As a result,           As we look to 2012 and beyond, opportunities for mixed use
developers may find it challenging to match the demand of              projects may be supported in certain key areas. Those areas
the different uses into a single product. There can also be            will include sites adjacent to strong employment centers, those
natural conflicts between uses and significant differences in site     with access to transit systems, and in a limited way, in select core
requirements such as parking ratios.                                   downtown environments. In central Florida opportunities are
                                                                       likely on sites adjacent to the planned Sunrail stations.
 In a tight credit market the more complicated a project is the
harder it is to attract capital. In a vertical mixed use development   In addition, in Florida, due to changes in transportation and
there also can often be a construction cost premium that               growth patterns we have a number of examples of older retail
increases the lease rates necessary to underwrite the project,         properties that are prime for redevelopment. Developers
which may make them less competitive.                                  should consider mixed use projects as an infill or redevelopment
                                                                       opportunity on strategic sites where there may be an aged single
As a general rule these projects will have to stand on their own,      use property.
proforma wise, based on their predominant use and the retail
component will have to be supportive and/or complementary.             As developers, we don’t want to bypass a good opportunity for a
For example, an office or multifamily development project may          mixed use project, but we have to do the work up front to make
need certain retail amenities for the tenants and there may be         sure we match the project to the market.
a desire to activate the street in front of the project, but the
office or residential demand may need to carry the financial
                                                                            Join Us for the Upcoming Legislative Event:
performance of the project.
                                                                                     NAIOP Legislative Update
                                                                                        March 22nd 11:30AM
In limited cases there may be a larger retail anchor that can help
                                                                                         Downtown Sheraton,
drive the project, the SODO Target in South Orlando for example,
                                                                                             Orlando, FL
but for the most part the retail portion will not be the project’s
driving force.

Though mixed use developments can be challenging, we can
continue to expect continued demand and interest in these
projects. The concept of mixed use development is consistent
with sustainable planning concepts, i.e. the goal of walkable
                                                                          For more information, visit NAIOP’s webiste at:
                                                                                     http://www.naiopcfl.org

16
                             the panhandle
                                                                pEnSaCOLa HiStORiCaL REnt & OCCupanCy
                                                                  94%                                                                                     $16.00
                                                                                                                                         Occupancy
                                                                  93%                                                                    Rental Rate
                                                                                                                                                          $15.00
                                                                  92%
                                                                  91%                                                                                     $14.00

                                                                  90%                                                                                     $13.00
                                                                  89%
                                                                                                                                                          $12.00
                                                                  88%
                                                                  87%                                                                                     $11.00


                                                                 Power Center & Shopping Center Statistics From CoStar Property Report




                                                                                 panaMa City EMpLOyMEnt Data
                                                                                                                     MY11                YE11          Change
                                                                                Workforce Size                       93,944              99,796        5.86%
                                                                                Unemployment Rate                     9.5%               10.0%         0.50%
                                                                                Source: Florida Research and Economic Database



                                                                                                pEnSaCOLa MSa EMpLOyMEnt Data
Market Overview                                                                                                                      MY11              YE11     Change
The Panama City/ Lynn Haven/ Panama City Beach MSA possess a year Workforce Size                                 214,922       206,851 -3.90%
round population of 170,000 and attracts over six million visitors annually. Unemployment Rate                    10.2%         9.6%   -0.60%
                                                                                Source: Florida Research and Economic Database
The region experienced one of the best years on record for tourism this
past year. Visitors returned to vacation on the sugary white sand beaches
after a disappointing 2010 that was marred by the BP Deepwater Horizon oil spill. Additionally, the area has become easier
to access since the opening of Northwest Florida Beaches International Airport (ECP) in May, 2010. ECP’s opening also
marked the arrival of Southwest Airlines which began service to the area. In the first year of operation ECP has experienced
tremendous increases in both passenger counts and market share.

Panama City’s major retail corridor, 23rd Street, has softened in recent years lead by Wal-Mart’s exit to develop a Super
Center in neighboring Lynn Haven but the area has recently received positive news with the announcement Wal-Mart will
return to their former location and expand in addition to several national retailers back filling vacant spaces. Occupancy rates
are on the rise. The enclosed Panama City Mall remains reasonably healthy and recently gained momentum by attracting
Bed, Bath & Beyond to relocate from another center in the area. The majority of retail development has been focused
at Simon’s lifestyle center, Pier Park, which opened on Panama City Beach in 2008. Pier Park’s success has attracted an
additional retail development to the west end of the beach. Glimcher has announced they will be developing Pier Park North
along Panama City Beach Parkway. Upon completion this development will add nearly 400,000 SF of additional retail to the
area. Dicks Sporting Goods, Bed, Bath & Beyond, Michael’s and Rooms to Go Furniture have been announced as anchors for
Pier Park North. The residential condo market on Panama City Beach remains very soft and has yet to find a bottom. A large
shadow inventory of residential condos remains and will continue to deflate values well into 2012 and beyond. The silver
lining is that it will supplement the beach rental market and allow tourism to remain strong.

The Destin and Fort Walton Beach markets have softened like much of the state. There are not any significant vacancies
localized in any one property. The Destin Commons lifestyle center and the ever popular Silver Sands Outlet Center in
Sandestin remain as the premier shopping destination of northwest Florida. Eglin Air Force Base continues to gain missions
while other military bases face downsizing or closure. The Army’s 7th Special Forces Airborne Group is locating its training
and operations center to Eglin and the Air Force’s new F-35 will be based out of Eglin with 59 planes and crews. This is
expected to increase the overall population by more than 8,000 people.

                                                                                                                                                                    17
                        tallahassee
                        370,021 People
                        7.3 Million SF of Shopping Centers




$11.05
average rental rate
down 4.4% since
mid-year 2011



90.6%
occupancy

A 1.6% increase since
mid-year 2011




8.2%
unemployment                                                                    taLLaHaSSEE COunty EMpLOyMEnt Data
                                                                                                                  MY11           YE11      Change
                                                                                Workforce Size                    193,290        193,327   0.02%
                                                                                Unemployment Rate                  8.6%           8.2%      -0.4%
                                                                                Source: Florida Research and Economic Database

                        Market Overview
                        Demand has remained strong, in and around campus areas for developers and retailers. With
                        1,000+ beds either under construction or planned, retailers are aggressively looking for space.
                        The Luxe on West Call & Conradi Street, a 15,000sf Retail/392 bed development is planning to
                        start construction in 2012 and College Town at the intersection of Woodward and Madison Street
                        is still planning delivery some time in 2013. Chick-Fil-A has contracted on the Ruby Tuesday site
                        on West Tennessee Street. University Square the new 24,000sf Retail development is in the “lease
                        up” stage and should deliver space to tenants in the fall of 2013 at the “gateway of FSU” on the
                        corner of W. Tennessee Street and Stadium Drive.

                        Market rents in the downtown area have been holding strong over the last 12 months and demand
                        seems to be picking up for smaller space. 111 Monroe Street recently sold to an investor who
                        intends to rehab the property and deliver 18,000sf of class “A” office space downtown.

                        The Midtown area of Tallahassee has seen an increase of leasing and re-development activity
                        from 2011 into 2012. Vintage, formerly Café Cabernet, a 9,000sf restaurant and bar, recently sold
                        to a group who is planning to convert the space into a collection of smaller themed spaces. The
                        former 15,000sf, American Homepatient building is planning a demise of the space into a similar
                        concept which will allow for multiple entertainment/bars to provide tenancy. All of which will
                        support the vision of Tallahassee becoming an 18 hour community.



18
        North Tallahassee retail market has seen the entry of new tenants. Gordos has recently signed a lease in Market
        Square, expanding their footprint in Tallahassee, which had their first location near FSU campus. Jersey Mikes
        signed a lease and opened 2011 in the Verandas on Market Square. Gulf Coast Dermatology and Jimmy Johns will
        open in the first quarter of 2012 and Genghis Grill is scheduled to be open mid-year.

        Tallahassee always has a strong retail market, with current vacancies hovering around 4.5%. The city hosts 70,000+
        college students from its three major colleges and universities. The state capital brings a highly-educated and
        active workforce that makes up a significant portion of the 320,304 person MSA population. Because of the low
        vacancies and high purchasing power, the growth of retail-related developments around the university, downtown,
        and highway-corridor areas are expected to grow significantly over the next five years. The average rental rate for
        available retail space is around $12 NNN; however, the desirable University, Downtown, and Highway corridors
        spaces fetch above a $22 NNN average.


   taLLaHaSSEE HiStORiCaL REntS & OCCupanCy
     94%                                                                                  $14.50
     93%
                                                                            Occupancy
                                                                                          $14.00
                                                                            Rental Rate

     92%                                                                                  $13.50
                                                                                          $13.00
     91%
                                                                                          $12.50
     90%
                                                                                          $12.00
     89%                                                                                  $11.50
     88%                                                                                  $11.00
     87%                                                                                  $10.50


    Power Center & Shopping Center Statistics From CoStar Property Report




taLLaHaSSEE REtaiL LEaSinG Data
       Submarket Name                                                Inventory                Occupancy Rate               Rental Rate
                                                                                            MY11   YE11     Change    MY11    YE11     Change
Downtown Tallahassee                                                    79,108               $0.98    98.1%   0.0%    $12.00   $0.00    -100.00%
East Tallahassee                                                      1,334,238              $0.90    90.3%   0.0%     $9.87   $9.30      -5.78%
Gadsden County                                                         293,967               $0.78    80.7%   2.8%     $6.48   $5.64     -12.96%
Jefferson County                                                        10,183               $1.00   100.0%   0.0%     $0.00   $0.00      0.00%
NE Tallahassee                                                         472,877              $0.89    89.0%    0.0%    $14.11   $13.02     -7.73%
Northeast Leon County                                                 1,764,110              $0.88   90.7%    3.1%    $14.59   $14.31     -1.92%
Northwest Leon County                                                  396,008               $0.81   81.2%    -0.2%    $9.35    $8.66     -7.38%
NW Tallahassee                                                         371,138               $0.97   96.2%    -0.5%   $13.64   $13.64     0.00%
SE Tallahassee                                                         477,138              $0.86    88.3%    2.7%    $8.97    $9.23      2.90%
Southeast Leon County                                                   760,001              $0.87   86.9%    0.0%    $11.73   $11.73     0.00%
Southwest Leon County                                                   126,788              $0.82   81.1%    -0.6%    $9.00    $9.00     0.00%
SW Tallahassee                                                           35,145              $0.86   85.5%    0.0%     $0.00    $0.00     0.00%
Wakulla County                                                          155,291              $0.95   94.3%    -0.9%   $10.34    $9.07    -12.28%
West Tallahassee                                                      1,000,294             $0.91    92.6%    1.5%    $14.35   $13.93     -2.93%
Tallahassee Market Total                                              7,276,286              $0.89   90.6%    1.6%    $11.53   $11.05     -4.37%
Power Center & Shopping Center Market Statistics From CoStar Property




                                                                                                                                                   19
              Jacksonville
              1.3 Million People
              38.6 Million SF of Shopping Centers


$13.52
average rental rate

down 2.1% since
mid-year 2011




87.4%
occupancy

relatively stable since
mid-year 2011



9.5%
unemployment
                                                                           JaCkSOnviLLE EMpLOyMEnt Data
                                                                                                             MY11          YE11      Change
                                                                          Workforce Size                    695,538        686,319   -1.34%
                                                                          Unemployment Rate                  10.3%          9.5%     -0.80%
                                                                          Source: Florida Research and Economic Database


        Market Overview
        This year, the National Retail Federation expected $469 billion in holiday sales. Green Monday on-line spending was $1.13
        billion dollars and there were a total of 81 million shoppers on Black Friday. Costar reports $46 million in investment
        sales in 2011, as compared to $99 million in 2010. These investment sales consisted largely of small tenant developments
        such as Verizon Wireless, AT&T, Family Dollar and Dollar General. Overall shopping center vacancy, as depicted in the
        Jacksonville Retail Market Overview is about 11.8%, with average lease rates of approximately $13.08 psf.

        Under construction at the world-famous St. Johns Town Center in the Southeast quadrant of the city, the rush is on for the
        opening of BJ’s Brewhouse at Butler Boulevard and Gate Parkway and Season’s 52 across between Capital Grill and Butler
        Boulevard. Over in the Orange Park market, look for Buffalo Wild Wings to open in the former Johnny Carino’s space and
        Logan’s Roadhouse Grill at River City Marketplace on the Northside of town.

        Unemployment in Jacksonville is now below 10% at an estimated 9.5%. That was, until a simple announcement in January
        by Del Haize that they were closing all of their stores in the Florida Market. This amounts to 20 stores and 900 employees.
        Additionally–– the Sears announcement of the closing of the Kmart at Blanding and Kingsley in Orange Park. This coupled
        with the existing vacancies created by large retailers who pulled out of the market several years ago, Circuit City, Linens
        and Things and still more vacancies left by retailers who repositioned themselves with the market (Wal Mart, Marshalls,
        Fresh Market, Sound Advice) leaves Jacksonville looking at close to 2 million square feet of vacant anchor space.

        On the bright side, some of this space has been absorbed by the recent announcement of 4 new LA Fitness centers and
        several Planet Fitness locations. Season’s 52 and BJ’s Brewhouse, both opened in the St. Johns Town Center area, along
        with a new Pei Wei, which is currently under construction. Smash Burger, M Shack and Logan’s Roadhouse grill also
        opened. Under construction and to be delivered in 2012 is Sleiman Development’s Villages of Amelia, anchored by Publix,
        Kohl’s and TJMaxx and Phase 2 of The Fountains at Atlantic and Kernan, anchored by LA Fitness.

        Globally we are not as good as the best markets nor are we as bad as the really bad markets.


20
JaCkSOnviLLE CapitaL MaRkEtS tREnDS
  $0.60                                                                          9.0%

  $0.50
                                 Rolling 12-Mo Volume
                                 (In Billions)                                   8.5%            JaCkSOnviLLE HiStORiCaL REnt & OCCupanCy
                                 Average Cap Rate
  $0.40                                                                          8.0%            94.0%                                                                                     $16.00
                                                                                                                                                                                           $15.50
                                                                                                                                                                         Occupancy
                                                                                                 92.0%
  $0.30                                                                          7.5%                                                                                    Rental Rate

                                                                                                                                                                                           $15.00
                                                                                                 90.0%
  $0.20                                                                          7.0%
                                                                                                                                                                                           $14.50
                                                                                                 88.0%
  $0.10                                                                          6.5%                                                                                                      $14.00
                                                                                                 86.0%
  $0.00                                                                          6.0%                                                                                                      $13.50
                                                                                                 84.0%                                                                                     $13.00
Source: Real Capital Analytics                                                                   82.0%                                                                                     $12.50


                                                                                                 Power Center & Shopping Center Statistics From CoStar Property Report




  “The overall shopping
  center     fundamentals
  in Florida continue to                       “Aggressive retailers are acting with                         Market Makers
  show recovery, but a                         renewed interest in backfiling locations
  much prettier picture                                                                                      parkway Shops
                                               that ensure their growth plans are met for                    Ramco-Gershenson - Northside
  is being painted by                          2010 and 2011. As demand for retail real
  Shopping Centers in                                                                                        89,240 SF - Dick’s and Marshalls
                                               estate continues to increase, and without                     Under Construction - Opening March 2013
  well located growth                          new supply coming on line, we expect this
  areas where demand,                          trend to accelerate”                                          the Fountains
  rent, and occupancy are                                                                                    Sleiman Enterprises/Weingarten - West Intracoastal
  approaching or in some                                                           - David Dieterle          400,000 SF - Academy Sports + Outdoors, LA Fitness
  cases exceeding peak                                                Developers Diversified Realty
  levels from the previous                                                                                   villages of amelia
  decade.                                                                                                    Sleiman Enterprises - Yulee
                                                                                                             400,000 SF - Publix, Kohl’s, TJ Maxx
                       - JJ Bujalski                                                                         Opening 1Q12
                Ramco-Gershenson




     JaCkSOnviLLE REtaiL LEaSinG Data
            Submarket Name                                      Inventory                 Occupancy Rate                                                Rental Rate
                                                                                        MY11    YE11     Change                            MY11            YE11     Change
    Arlington                                                    2,579,577              81.5%         80.9%              -0.6%            $11.99             $12.29                     2.5%
    Baker County                                                  523,548               99.7%         99.7%              0.0%             $10.72             $10.16                     -5.2%
    Beaches                                                      3,378,453              86.7%         86.6%              -0.1%            $16.84             $16.57                     -1.6%
    Butler / Baymeadows                                          1,794,244              90.6%         90.6%              0.0%             $16.70             $14.15                    -15.3%
    Downtown Northbank                                           1,396,884              87.8%         87.7%              0.0%             $10.16             $10.16                     0.0%
    Downtown Southbank                                             61,205               65.4%         62.6%              -2.8%            $23.00             $23.00                      N/A
    Mandarin                                                     3,326,091              89.7%         90.5%              0.8%             $15.54             $14.92                     -4.0%
    Northeast Jacksonville                                       1,169,690              86.0%         86.6%               0.6%            $11.06             $11.33                     2.4%
    Northwest Jacksonville                                       1,657,677              80.0%         79.7%              -0.2%             $6.88              $6.88                      0.0%
    Orange Park / Clay County                                    5,347,799              85.7%         87.0%               1.3%            $13.36             $12.96                     -3.0%
    Riverside                                                    5,087,763              92.3%         92.3%               0.0%            $12.29             $12.29                      0.0%
    San Marco                                                    1,003,156              74.9%         75.3%               0.4%            $13.27             $13.25                     -0.2%
    Southside                                                    7,787,557              87.1%         86.7%              -0.4%            $14.36             $14.30                     -0.4%
    St Johns County                                              3,443,048              91.8%         90.8%              -1.0%            $16.65             $16.44                     -1.3%
     Jacksonville Market Total                                  38,556,692              87.2%         87.5%              0.3%            $13.80             $13.52                     -2.1%
    Power Center & Shopping Center Market Statistics From CoStar Property

                                                                                                                                                                                                21
       Ocala / Gainesville
       579,082 People                                                                GainSEviLLE EMpLOyMEnt Data
                                                                                                                       MY11            YE11      Change
                                                                                     Workforce Size                   138,290          137,427   -0.63%
                                                                                     Unemployment Rate                  8.3%            7.7%     -0.60%
                                                                                      Source: Florida Research and Economic Database



                                                                                      OCaLa EMpLOyMEnt Data
                                                                                                                        MY11            YE11     Change
                                                                                     Workforce Size                    133,035         131,250    -1.36%
                                                                                     Unemployment Rate                  12.6%           11.6%     -1.00%
                                                                                     Source: Florida Research and Economic Database




                                                                           “Activity continues to increase with
                                                                           local and national players. It’s really
                                                                           exciting to see local entrepreneurs
                                                                           taking the initative to re-engage the
                                                                           economy”

                                                                                                       - Bartow McDonald
                                                                                                           Sperry Van Ness

      Market Overview
      The bad news: While office space in Gainesville has seemed to stabilize, both in terms of number of spaces and lease rates, retail
      still hasn’t gotten a consistent stable footing. For retail, we added 65,000 SF of space in the 1st Quarter, then we added 29,000
      SF in the 2nd Quarter, then another 38,000 SF in the 3rd Quarter, and now we’ve added an additional 51,000 SF. Rates have
      gone up and down during 2011 from $15.54/SF at the start of the year to the current $15.13/SF. While this is down from last
      quarter, rates have general stayed in this price range since the 2nd Quarter of 2010. Restaurant leasing is the most active but
      still not happening at a fast pace by any means. Retail leasing under 1,000 SF is more prevalent while anything over 2,500 SF sits
      for long periods of time. With an average days on the market of almost 1.5 years, it is essential to price it right and make sure
      the properties aesthetics are in tip top shape. It isn’t uncommon for tenants to receive up to $8/SF in tenant improvements for
      second generation space or as much as 6 months of free rent on the front end.

      The good news: Leasing is way up! When you look at year over year volume, far more leases are getting done now then a year
      ago. The problem is space is hitting the market at a faster pace than the leasing. Retail construction has come to a halt, which
      is a good thing while inventories are leased up. Positive absorption days are nearing but it is happening very slowly. Grocery
      anchored centers are averaging roughly 95% occupancy. It is the non—anchored centers, strip centers, neighborhood centers
      that reach the 15—20% vacancy factor.

     “As an area developer in Orlando,             The Innovation Gainesville movement still dominates the media and is picking up
     Gainesville, and Tallahassee, I am finding    traction around the world. Innovation Square is a development site located between
     that the soft commercial real estate          the University of Florida and downtown Gainesville that is serving as the poster child
     market is allowing for unprecedented          for this movement. The master idea is to become a community where large technical
     opportuities for the franchise prospects      and innovation type companies want to locate their business to by offering incentives,
     we are working with. The availability         sites, and a high quality of living for their employees and owners. On the same note,
     of tenant improvement monies, free            Progress Corporate Park, the original innovation type development, is also working
     rent and attractive leasing terms have        diligently to bring in high quality companies and minds from around the world to their
     allowed us to continue our aggressive         state of the art facilities and beautiful grounds. A REIT has purchased over 50 acres
     growth in Florida in the right locations      of various parcels in anticipation of doing build to suits with these companies as well
     at the right price”
                                                   as placing them in move in ready buildings currently available. Lastly, Shands and UF
                               - Samuel Osborne
                                                   continue to be major economic drivers, building medical facilities on the east side and
                               Tropical Smoothie   along the interstate in an effort to spur further development in those areas.

22
         the villages
Market Makers
brownwood
The Villages
350,000 SF Town Center
Construction Jul-11

Colony plaza
The Villages
130,515 SF - Publix Anchored

La plaza Grande
The Villages
326,150 SF - Belk, Publix

Lake Sumter Landing
The Villages
510,555 SF Town Center - Barnes & Noble,
Coldwater Creek, Starbucks, Panera, Jos A Bank

Spanish Springs
The Villages
375,455 SF Town Center - Chicos,
Ruby Tuesday, Panera Bread

village Crossroads
The Benchmark Group - Lady Lake
160,000 SF - Best Buy, JoAnn, PetsMart, BB&B




    Market Overview
    The Villages is the largest single site residential development in the United States, spanning over 26,000 acres in adjoining
    Sumter, Lake and Marion counties. Home to more than 86,000 residents, The Villages has a projected build out of more
    than 105,000 residents by the year 2017.

    The Villages retail market is stable and growing. Net retail absorption has been steadily increasing and occupancy rates
    within the boundaries of The Villages development are near 98%. Development of Phase I of Brownwood, the third town
    center inside The Villages, is under construction. Brownwood is one part of a massive 300+ acre mixed use regional
    commercial development which will serve both the southwestern section of The Villages and the surrounding area.

    The primary economic drivers for the community are discretionary time and income of the area’s retired residents,
    The Villages Health System, and the professional and service support economy created by the nearly four million
    SF of commercial space in the area. Additionally, Moffitt Cancer Center opened in October 2011 as part of a 55,000 square
    foot addition to The Villages medical campus.

    Residential growth in 2011 surpassed 2010 and is showing no signs of slowing down in the coming year. Locating within
    The Villages borders offers many unique competitive advantages over sites in the surrounding area. Most of the retailers
    located inside The Villages accessible to its residents via golf cart, which is their primary means of transportation, are
    reaping the benefits with increased comparable sales year over year.


                                                                                                                                    23
     Daytona beach / volusia
     1,040,584 People


                                                                                  DaytOna MSa EMpLOyMEnt Data
                                                                                                                    MY11          YE11      Change
                                                                                 Workforce Size                    254,896        251,540   -1.33%
                                                                                 Unemployment Rate                  11.0%         10.1%     -0.90%
                                                                                 Source: Florida Research and Economic Database




                                                                                Market Makers
                                                                                the pavilion
                                                                                CBL - Port Orange
                                                                                Over 550,000SF Outdoor open air shopping
                                                                                center - Ulta, Party City, Petco, Marshalls/
                                                                                HomeGoods, Michael’s, Olive Garden, Five
                                                                                Guys, Red Robin




     Market Overview
     The Daytona Beach / Deltona market will see the first phase of SunRail under construction in 2012! The northernmost stops on the
     transit line will be DeLand and DeBary, finally making a rail connection between Volusia County and metro Orlando. This project
     should facilitate development around the two Volusia County stations.

     Daytona Beach continues to drive tourism with nearly 9 million annual visitors. The Ocean Center’s expansion in 2009 has already
     generated increased traffic from major national conventions and has brought in popular musical talent. Directly across from the
     Ocean Center and surrounded by 2,000 hotel rooms including the Wyndham Ocean Walk Resort and the Hilton Daytona Beach,
     Ocean Walk Village hosts over 2 million visitors annually. These projects lie in the heart of Daytona Beach’s proposed “E-Zone”
     development, which will include additional hotels, shops, and restaurants as well as a multi-million dollar renovation of the world-
     famous Daytona Beach Pier, which is planned to include a new Joe’s Crab Shack restaurant which will be their 12th location in
     Florida.

     Beach Street Riverfront will continue to be a family-friendly destination, complete with new retail and residential projects, bike
     paths, and parks. One notable community project which broke ground in early 2012, is a public plaza which will enhance the area
     with an outdoor garden and seating areas. The Saturday Farmer’s Market brings critical mass to the area each weekend which
     has helped the retail development along Beach Street. Several new businesses have opened including the widely popular Three
     Brothers Boards. They hand make wooden stand up paddle boards and ship them world wide, in addition to giving paddle board
     lessons and eco tours along the Halifax River. Bruce Rossmeyer’s “Original” Daytona Harley-Davidson dealership on Beach Street
     was recently converted into a year round attraction to preserve the histroy of the motorcyle industry.

                                             Daytona Beach will experience growth surrounding Florida Hospital’s 135-acre Memorial
 “From its bold, geometric shapes            Medical Center as the project’s renovation in 2009 opened the trade area to additional
 and electrifying colors , to its
                                             medical, industrial, and residential projects. Much of the surrounding land, including the
 picturesque setting at the heart of
 Daytona Beach, The Ocean Walk               prestigious LPGA International and its surrounding neighborhoods, is owned by Consolidated-
 Shoppes & Movies offer visitors             Tomoka Land Co. International Speedway Corporation continues to drive significant
 one of the most unique shopping             economic development, seeing strong fan turnout for the signature races and experiencing a
 and entertainment experiences on            record-breaking turnout for the 50th annual Rolex 24 Hour at Daytona race in January 2012.
 Florida’s east coast.                       International Speedway Boulevard is thriving as a retail corridor, seeing declining vacancy
                               - Kim Ellis   rates and a new BJ’s Brewhouse, Applebee’s, and Buffalo Wild Wings.
            Ocean Walk Shoppes & Movies


24
         Orlando
         2.2 Million People
                                                                                                      “It is interesting how resilient a
                                                                                                      market can be when the basic
                                                                                                      commercial real estate fundamentals
                                                                                                      are right. We are working on an urban
         71.5 Million SF of Shopping Centers                                                          infill mixed use development called
                                                                                                      Mills Park. The site has established
                                                                                                      permanent and daytime population
                                                                                                      bases and traffic patterns. It is a

$14.39
                                                                                                      boutique grocery anchored site with
                                                                                                      opportunity for a few restaurants and
average rental rate                                                                                   small shops. Asking low $30s, with
                                                                                                      estimated NNN’s to be around $8/SF,
down 3.7%                                                                                             we have seen a heavy demand from
since mid-year 2011                                                                                   strong national users and have been
                                                                                                      collecting unsolicited offers at asking
                                                                                                      price. I think that was the problem in

89.0 %
occupancy
                                                                                                      the boom years…we overlooked the
                                                                                                      basics”

A 0.5% increase since                                                                                                                      - Jill Rose
                                                                                                                     Pelloni Development Corporation
mid-year 2011



9.4%
unemployment                                                                        ORLanDO MSa EMpLOyMEnt Data
                                                                                                                      MY11           YE11       Change
                                                                                   Workforce Size                   1,125,342       1,148,415   2.01%
                                                                                   Unemployment Rate                  10.4%           9.4%      -1.00%
                                                                                   Source: Florida Research and Economic Database


             Market Overview
             Orlando is experiencing some encouraging signs as the economy swings back to the positive side of the pendulum, with
             the expansion of some of its major healthcare systems. Florida Hospital’s Health Village continues to grow the 172-acre,
             mixed-use project that will include a 200-unit apartment complex, hotel, meeting and medical space and 120,000 SF
             of retail at their Florida Hospital Orlando campus. Having already completed one medical-office building that will hold
             over 10,000 SF of retail on the first floor, plans to break ground on additional buildings housing retail will begin in late
             2012. Meanwhile, Orlando Health announced plans to expand their downtown Orlando Regional Medical Center campus
             starting in 2012 with a 90,000 SF expansion of the emergency department as well as adding a new 345,000 SF tower. Both
             of these hospital locations will be stops along the 61-mile SunRail commuter rail transit system. Construction for Phase
             I is expected to begin at the end of January 2012, with projections for 4,300 daily passengers being brought into these
             areas when it begins operation in 2014.

                                                           Landlords are still in a tenant-friendly economy and therefore are finding
  “After a multi-year slumber, the bank debt markets       ways to get more creative in order to get the “out-of-the-box” deals done.
  are stirring with activity as the strong independent     Often this includes tenant improvement dollars, free rent, shorter terms or a
  and regional banks have aggressive loan growth           combination of these. Restaurants have taken a bigger percentage of leased
  goals. The most sought after projects will be            deals with the food and entertainment combo of Dave & Busters opening
  the highest quality retail properties with strong
                                                           on I-Drive, followed shortly by Fogo de Chao’s churrascaria-style restaurant.
  locations, functional designs and a reliable stream
  of cashflow from well-established tenants. Credit        Winter Park-based company 4Rivers Smokehouse added two additional
  tenant lease income streams can again command            locations in 2011 with plans to move their flagship location down the street
  LTV ratios in the 75% range. Speculative projects        and expand from 1,350 SF to 7,000 SF. Buffalo Wild Wings and Five Guys
  or projects relying on the sale of outparcels will be    Burgers & Fries continue to press on in Central Florida opening up multiple
  tougher to finance”                                      franchised locations in 2011 with plans for more in 2012.

                                           - Steve Cohen
                                 American Mometum Bank


                                                                                                                                                         25
 ORLanDO CapitaL MaRkEtS tREnDS
     $0.70                                                                              9.5%                      “The Orlando market continues to
                                                                                                                  improve. With essentially no new
     $0.60                        Rolling 12-Mo Volume
                                  (In Billions)
                                                                                        9.0%                      construction, vacancy rates are
     $0.50                        Average Cap Rate                                      8.5%                      dropping.
     $0.40                                                                              8.0%
                                                                                                                  There is strong demand / competition
     $0.30                                                                              7.5%                      for key restaurant locations as
     $0.20                                                                              7.0%                      expansion sites for brands already
                                                                                                                  established in this market as well as
     $0.10                                                                              6.5%
                                                                                                                  from new concepts to Orlando.
     $0.00                                                                              6.0%

                                                                                                                                            - Christie Alexander
 Source: Real Capital Analytics
                                                                                                                                                    NAI Realvest


 ORLanDO HiStORiCaL REnt & OCCupanCy
     94%                                                                               $19.00       “Although the market dynamics based on job growth
                                                                         Occupancy                  and household formation have not generally been
     93%                                                                               $18.00
                                                                         Rental Rate
                                                                                                    conducive for significant new retail development in
                                                                                       $17.00       Central Florida, there are some signs of life in certain
     92%
                                                                                       $16.00       areas. In the tourist corridor, the Orlando Premium
     91%                                                                                            Outlets has expansion plans, Unicorp’s I-Walk project
                                                                                       $15.00
     90%                                                                                            is moving through the approval process featuring
                                                                                       $14.00
                                                                                                    attractions like a rotating observation tower,
     89%                                                                               $13.00       Madame Tussaud’s wax museum, and 200,000 SF
     88%                                                                               $12.00       other retail. Tourism visitation has increased since
                                                                                                    about mid-year 2010, resulting in positive year over
                                                                                                    year comparisons in both hotel occupancies and
 Power Center & Shopping Center Statistics From CoStar Property Report                              average room rates, yielding some optimism”

                                                                                                                                 - Dave Darsey & Owen Beitsch
                                                                                                                               Real Estate Research Consultants


                    “We saw a substantial increase in activity in 4th quarter
                    of 2011, including some refinancings. It seems like
                    banks are cautiously returning. The deals have lower
                    LTV and higher equity than pre-crash but there is finally
                    some activity”

                                                                 - Terry Delahunty, Esq., LEED AP
                                                                              GrayRobinson, P.A.




 “Tenants are still difficult to come by for
 vacant space. We are seeing a lot more
 leasing activity in the third quarter of the
 year compared to 1st and 2nd quarters.
 However, most qualified leads have come
 through a strategic plan - traditional
 cold calling and canvassing and not just
 relying on answering the phone.”

                                              - Willow Shambeck
                                               Cursor Realty Corp



26
Market Makers
Stadium Corners                                                                   Lake nona planned Development
Windcrest Development by Crossman & Company - Viera                               Tavistock - Lake Nona
Publix Super Markets - 69,518 SF                                                  7 Million SF Commercial Entitlements
Opening Q1 2012                                                                   Nearly $2 Billion Invested in New Construction
Casselberry Commons
Developers Diversified Realty - Casselberry
215,135 SF Redevelopment - Publix, TJ Maxx, Ross, Stein Mart                      Orlando premium Outlets
                                                                                  Simon - Orlando
black Lake village                                                                80,000 SF Expansion Planned, Construction ‘12
Equinox Development Properties - Orlando
6 acres - Joe’s Crab Shack, Texas Roadhouse                                       Saxon Crossings
                                                                                  Michael Collard Properties by Forness Properties - Orange City
Current at Lee vista                                                              Hobby Lobby - 50,000 SF
Developers Diversified Realty - Orlando
682,000 SF - Target                                                               university plaza
                                                                                  North American Development Group - Winter Park
Eagle Creek town Center                                                           77,918 SF Redevelopment - Publix, Chase Bank
Emerson International - Lake Nona                                                 Completion Apr-11
200,000 SF - Grocery Anchored
Construction planned 1Q12                                                         winter park village
                                                                                  Casto - Winter Park
i-Drive pad Sites                                                                 New leases: Taps, Lime Fresh, Ginger, Soccer Locker, Music Lab,
Equinox Development Properties - Orlando                                          Mon Creperie, The Bar Method Fitness Studio, Sprint
9 acres for 6 outparcels - Walgreens, WaWa, Taco Bell

  ORLanDO MSa REtaiL LEaSinG Data
        Submarket Name                                       Inventory      Occupancy Rate                             Rental Rate
                                                                          MY11    YE11     Change             MY11        YE11     Change
 436 Corridor                                                5,062,188    93.7%       94.1%        0.4%      $18.20       $18.48        1.5%
 Altamonte / Douglas                                         2,386,682    89.0%       89.4%        0.4%      $12.68       $12.49        -1.5%
 Brevard County                                              12,900,780   87.2%       86.5%        -0.7%     $11.66       $11.66        0.0%
 Casselberry                                                  3,595,867   86.4%       90.2%        3.8%      $14.03       $15.31        9.1%
 Downtown                                                      34,734     98.7%       100.0%       1.3%      $16.00        $0.00      -100.0%
 Kissimmee                                                    3,217,888   89.9%        90.8%       0.9%      $16.00       $15.65        -2.2%
 Lake County                                                  6,312,552   89.7%        89.3%       -0.4%     $17.06       $15.04       -11.8%
 Lake Mary                                                    2,151,041   91.6%        92.5%       0.9%      $17.72       $18.31        3.3%
 Lee Road                                                      473,047    91.6%        91.1%       -0.5%     $15.36       $14.98        -2.5%
 Longwood                                                     1,037,645   88.1%        87.1%       -1.0%     $12.73       $12.81         0.6%
 Maitland                                                      672,918    84.2%        84.0%       -0.2%     $15.18       $15.60         2.8%
 Maitland Center                                              1,534,478   87.1%        87.1%        0.0%     $20.16       $19.57        -2.9%
 Metro West                                                   1,237,098   88.7%        86.1%       -2.6%     $15.31       $15.87         3.7%
 North Orlando Outlier                                         724,445    83.7%        86.5%        2.8%     $13.86       $13.24        -4.5%
 Orlando Airport                                                94,937    76.6%        75.8%       -0.8%     $15.70       $16.85         7.3%
 Orlando Central Park                                         3,560,221   82.0%        85.8%        3.7%     $12.22       $12.58         2.9%
 Sanford                                                      1,989,627   89.1%        87.5%       -1.6%     $17.30       $15.89        -8.1%
 South Orange                                                  901,634    86.1%        90.4%        4.3%     $16.19       $16.11        -0.5%
 South Orlando Outlier                                        7,254,485   90.2%        90.9%        0.7%     $19.47       $18.78        -3.5%
 Tourist Corridor                                             5,617,842   86.8%        88.2%        1.4%     $20.35       $19.81        -2.7%
 University                                                    352,667    94.5%        95.5%        1.0%     $20.41       $20.04        -1.8%
 University Research                                           222,758    91.3%        90.0%       -1.3%     $18.19       $17.68        -2.8%
 West Colonial                                                6,276,994   87.2%        87.2%        0.0%     $13.22       $13.22         0.0%
 West Outlier                                                 1,488,106   89.9%        89.7%         N/A     1357.0%      $13.79          N/A
 West University                                              1,267,165   87.5%        84.4%       -3.1%      $17.81      $17.57        -1.3%
 Winter Park                                                  1,109,503   94.5%        94.2%       -0.3%      $18.12      $18.25         0.7%
 Orlando Market Total                                        71,477,302   88.5%       89.0%        0.5%      $15.39      $14.85        -3.7%
 Power Center & Shopping Center Market Statistics From CoStar Property

                                                                                                                                                    27
                      pasco / Hernando
                      639,611 People
                      16.2 Million SF of Shopping Centers

$14.50
pasco
average rental rate      Market Overview

$11.64
hernando
                         Pasco County continues to be an area of growth in the greater Tampa Bay area. New residential development
                         is once again occurring, especially along SR 54 from Wesley Chapel in the east to Trinity in the west.

average rental rate      SR 54 widening east of Bruce B. Downs Blvd. to Curley Road in Wesley Chapel was completed at end of 2011,
                         resulting in new businesses looking to locate in the area toward Zephyrhills.

                         After completing the Publix-anchored Shoppes at Sunlake Centre, Amprop Development is starting up its
87.0%
pasco
                         project across SR 54 at Sunlake Blvd. Long Lake Ranch will be a mixed-use development anchored by the
                         450,000 sf T. Rowe Price office campus, with entitlements for 527,000 sf of retail plus offices, multi-family
occupancy                and a hotel.


89.5%
hernando
                         The mostly vacant Trinity Town Center at the NEC of Trinity Blvd. and Little Road is once again offering space
                         for lease, after having been on hold for several years.
occupancy
                         The proposed 1.3 million square feet Cypress Creek Town Center on SR 56 by I-75 has suffered through
                         permitting delays since it was first announced in 2004, due to environmental litigation problems. Word has
                         it that the site now appears to be a likely possibility for a Simon Outlet Mall, as the company is researching

11.2%
pasco
                         sites in the Tampa area.

                         The Pennsylvania-based Wawa gas/convenience store chain will break ground for its first Pasco locations
unemployment
                         this spring at Ridge Road & Little Road and at US 19 & Ridge Road in Port Richey.

12.7%
hernando
                         Hernando County is experiencing growth with a 32% population increase between 2000 and 2010. The
                         majority of its 173,078 residents are found in the Spring Hill and SW Hernando areas. Retail centers along
unemployment
                         US Hwy 19, Spring Hill Drive and Cortez Blvd. (SR 50) house major retail chains as well as local tenants, while
                         Suncoast Crossing and the Shoppes of Avalon serve the residents by the Suncoast Parkway.

                         The Airport Industrial and Corporate Parks are home to over one hundred aviation, manufacturing and
                         distribution businesses. The 1.6 M square foot Walmart Distribution Center is the largest in the U.S. and is
                         one of the largest employers in the area. The recently completed expansion at HCA Oak Hill Hospital and
                         the New Pasco-Hernando Community College add to employment opportunities in this area.

                                                                                         paSCO COunty EMpLOyMEnt Data
                                                                                                                           MY11          YE11      Change
     Market Makers                                                                      Workforce Size                    196,015        196,884   0.44%
                                                                                        Unemployment Rate                  12.0%         11.2%     -0.80%
     Hays towne Center                        Suncoast Crosssings                       Source: Florida Research and Economic Database
     Dunphy Properties - Land O’Lakes         Regency Centers - Brooksville
     105,000 SF - Publix Anchored             McDonalds - Opened Early-11
     Opened 2Q11                                                                         HERnanDO COunty EMpLOyMEnt Data
                                                                                                                           MY11          YE11      Change
     Zephyr Commons (phase i)                 terra bella                               Workforce Size                     62,854        62,895    0.07%
     North American Development Group         Boyd Development - Land O’Lakes           Unemployment Rate                  13.8%         12.7%     -1.10%
     - Zephyrhills                            8 acres Retail in Mixed Use               Source: Florida Research and Economic Database
     105,743 SF - Publix, Staples             Opened ‘11


28
Lakeland / polk
604,792 People
                                                                                                                                       $13.05
                                                                                                                                       average rental rate

12.1 Million SF of Shopping Centers                                                                                                            down since
                                                              LakELanD EMpLOyMEnt Data                                                      year-end 2010
                                                                                                MY11           YE11     Change
                                                             Workforce Size                    272,201        269,551    -0.98%


                                                                                                                                         90.2%
                                                             Unemployment Rate                  11.7%          10.7%     -1.00%
                                                             Source: Florida Research and Economic Database


                                                                                                                                               occupancy

                                                                                                                                     above the statewide
                                                                                                                                     average this quarter




                                                                                                                                         10.7%
                                                                                                                                           unemployment




                                                                                                              “Polk County may be the most exciting
                                                                                                              market in Florida at this time. The
                                                                                                              opening of Legoland, the CSX Integrated
                                                                                                              Logistics Center, USF Poly Tech, and
                                                                                                              expanded facilities at the Heart of Florida
                                                                                                              Medical Center will establish a solid
                                                                                                              and diversified economic foundation in
                                                                                                              education, transportation, healthcare,
   Market Overview                                                                                            and tourism. New jobs will need housing
   The Lakeland/ Polk County market has seen a consistent increase in activity                                and new households will need retail and
   throughout the year in 2011. Tenants are continuing to take advantage of                                   commercial development”
   reduced rents and the mass of opportunities available to them. Both housing and
   unemployment continues to trend downward for the fourth consecutive quarter,                                                                - Bill Owen
                                                                                                                                     W.H. Owen Consulting
   but they still remain high leaving the overall economic outlook uncertain.

   The number of Tenants asking for rent relief continues to steadily decrease which
   could be a sign of coming stability. The existing Tenants who have weathered the                           Market Makers
   downturn up to this point have reworked their operations and learned how to stay                           City Centre at posner park
   profitable in such a challenging market. Those same Tenants continue to progress                           Trammell Crow Company - Davenport
   while many of their competitors are not adapting and closing, creating a greater                           450,000 SF - Under Construction
   market share and potential opportunity for expansion.
                                                                                                              Gresham village
                                                                                                              Watkins Retail Group - Lakeland
   There has, however been a great cause for optimism since the opening of the                                89,831 SF - Publix Anchored, Planned
   Legoland theme park in Winter Haven last October. Just six weeks after its official
   grand opening, Legoland Florida announced its first expansion - Legoland Water                             Lakeland park Center
   Park, which is scheduled to open in summer 2012. This will keep creating more                              Ramco-Gershenson - Lakeland
   job opportunities, and will attract millions of visitors to the area giving the market                     237,405 SF
                                                                                                              Planned Development - Spring 2014
   a substantial economic boost. This will likely increase the overall speed of the
   recovery.




                                                                                                                                                         29
                              tampa / St. petersburg
                              2.8 Million People
                              97.0 Million SF of Shopping Centers


$13.67
average rental rate
                                                                                      taMpa MSa EMpLOyMEnt Data
                                                                                                                        MY11          YE11      Change
up from a downhill fall                                                              Workforce Size                   1,301,000       599,437   -117.04%
                                                                                     Unemployment Rate                  11.1%          9.5%      -1.60%
since 2008                                                                           Source: Florida Research and Economic Database




89.7%
occupancy
                                                                                       “We have seen an uptick in small, free
                                                                                       standing single tenant retail stores.
down 0.4% since                                                                        Larger centers built some years ago are
mid-year 2011                                                                          being updated along with the conversion
                                                                                       of large, single tenant dark boxes
                                                                                       into multiple tenant retail. Talking to
                                                                                       Architects and Engineers involved with

9.5%
                                                                                       retail construction, we expect 2012 will
                                                                                       be better than 2011. Some of these firms
unemployment                                                                           report that in the last few months more
                                                                                       and more owners are contacting them
                                                                                       about projects that have been on the
                                                                                       shelf for some time. That’s the best news
                                                                                       we have had in years. We are cautiously
                                                                                       optimistic for 2012.”
                                                                                                                                    - Earl Cooper
                                                                                                                            Hawkins Construction


             Market Overview
             The Tampa Bay’s MSA of Hillsborough, Pasco, Pinellas and Hernando counties makes it the 19th largest MSA in the
             United States. The Tampa Bay area is a progressive, dynamic and growing region. The retail market is showing signs
             of a slow-moving recovery and will continue through 2012. There is great optimism with the anticipation of the
             Republican National Convention and with the completion of projects like the Tampa Riverwalk.

      “Leasing activity, although slower     Tampa will be the host of the 2012 Republican National Convention which is an
      than we would like, has increased      opportunity for Tampa Bay to showcase the city and will benefit local business
      somewhat in Pinellas and               owners. The event will be held at the Tampa Bay Times Forum in August with nearly
      Hillsborough. Rent levels are still    50,000 visitors from all over the globe expected to come to the Tampa Bay area.
      lower than 2 years ago, but well-
                                             Tampa will receive global attention and coverage from each television network with
      located space is getting hard to
      find. We see serious competition       approximately 15,000 journalists in attendance.
      for prime spaces between the new
      hamburger, self-serve yogurt, and      The next link to the Tampa Riverwalk is slated to start construction in 2012 and
      health/fitness concepts”               be completed in early February 2013. The pedestrian waterfront walkway along
                                             the Hillsbourgh River is proposed to extend around the CapTrust building, between
                           - Cary Anderson   MacDill Park and the Brownstone segment of the Riverwalk. The total project cost
                           Regency Centers
                                             is $1.44 million.




30
 taMpa HiStORiCaL REnt & OCCupanCy                                                                       taMpa CapitaL MaRkEtS tREnDS
  94%                                                                                   $17.00              $1.0                                                                           12.0%
                                                                         Occupancy
                                                                                        $16.50                                            Rolling 12-Mo Volume
  93%                                                                    Rental Rate                                                      (In Billions)                                    11.0%
                                                                                        $16.00              $0.8
                                                                                                                                          Average Cap Rate
  92%                                                                                                                                                                                      10.0%
                                                                                        $15.50
                                                                                                            $0.6                                                                           9.0%
  91%                                                                                   $15.00
                                                                                        $14.50              $0.4                                                                           8.0%
  90%
                                                                                        $14.00                                                                                             7.0%
  89%                                                                                                       $0.2
                                                                                        $13.50
                                                                                                                                                                                           6.0%
  88%                                                                                   $13.00
                                                                                                            $0.0                                                                           5.0%


 Power Center & Shopping Center Statistics From CoStar Property Report                                   Source: Real Capital Analytics



Market Makers                                                                                                                      “With the pending completion of the Riverwalk
                                                                                                                                   in Downtown Tampa and the need for more
Caladesi Shopping Center                                                 university plaza                                          hospitality and service type businesses, we
Publix Super Markets, Inc.- Dunedin                                      The Sembler Company - Tampa
76,869 SF - Publix Anchored                                              12,019 SF - CitiTrends                                    are seeing the redevelopment of several
Re-opening 3Q 2012                                                                                                                 projects that will have new restaurants, retail,
                                                                         valrico Commons                                           and service based concepts popping up.
town Shoppes of bay isles                                                North American Development -
Publix Super Markets, Inc. - Longboat Key                                Tampa                                                     Tampa/St. Pete has yet to get a major
61,233 SF - Publix Anchored                                              125,000 SF - Publix                                       discount retailer center dedicated solely to
Re-opening 4Q 2012                                                       Opened Fall 2011                                          discount or outlet shopping. It’s a void that
                                                                                                                                   we need to fill to help drive retail sales in our
Metwest international                                                    Crossroads                                                marketplace”
MetLife by Florida Retail Partners - Tampa                               The Sembler Company - St.
Price Waterhouse Coopers - 250,000 SF                                    Petersburg                                                                                             - Jason Donald
New Tower Opening Apr-’13                                                27,712 SF - West Marine                                                                   Cushman & Wakefield (Tampa)


     taMpa MSa REtaiL LEaSinG Data
           Submarket Name                                                  Inventory               Occupancy Rate                                                 Rental Rate
                                                                                                 MY11    YE11     Change                                  MY11       MY11     Change
     Bayside                                                               1,201,134             91.2%        92.4%                0.0%                  $12.47      $12.36        -0.9%
     Clearwater CBD                                                          530,465             95.3%        94.8%                -0.5%                 $12.76      $12.16        -4.7%
     East Tampa                                                            5,941,699             92.2%        92.5%                0.3%                  $14.75      $15.25        3.4%
     Gateway                                                               1,617,488             91.8%        92.1%                0.3%                  $17.55      $16.48        -6.1%
     Hernando County                                                       4,362,327             90.5%        89.5%                -1.0%                 $12.02      $11.64        -3.2%
     Manatee                                                               7,442,354             87.0%        87.9%                0.9%                  $12.42      $13.10        5.5%
     Manatee Outlying                                                        587,588             90.0%        90.4%                0.4%                  $15.92      $15.72        -1.3%
     Mid-Pinellas                                                          6,191,335             89.5%        89.3%                -0.3%                 $12.79      $12.04        -5.9%
     North Pinellas                                                        7,732,689             89.1%        90.7%                 1.6%                 $14.47      $15.37         6.2%
     Northeast Tampa                                                       5,424,554             91.2%        91.2%                 0.0%                 $13.50      $13.67         1.3%
     Northwest Tampa                                                       9,570,044             91.0%        92.3%                 1.3%                 $15.84      $15.57        -1.7%
     Pasco County                                                          11,814,245            87.0%        87.0%                 0.0%                 $12.23      $14.50        18.6%
     Polk County                                                           11,939,519            89.6%        90.2%                 0.5%                 $13.38      $13.05        -2.5%
     Sarasota                                                               8,453,047            88.3%        88.1%                -0.3%                 $16.06      $15.79        -1.6%
     Sarasota Outlying                                                      2,505,996            81.4%        80.4%                -1.0%                 $11.37      $11.37         0.0%
     South Pinellas                                                         7,329,242            90.3%        91.4%                 1.1%                 $11.58      $11.52        -0.6%
     South Tampa                                                            1,451,464            93.3%        92.3%                -1.0%                 $13.43      $14.84        10.5%
     St Petersburg CBD                                                       232,801             85.4%        85.4%                 0.0%                  $8.40       $8.41         0.1%
     Tampa CBD                                                               299,734             62.6%        63.8%                 1.2%                  $0.00       $0.00         0.0%
     Westshore                                                              2,312,952            89.7%        89.2%                -0.5%                 $15.15      $14.71        -2.9%
     Tampa Market Total                                                   96,940,677         89.3%            89.7%               -0.1%                 $13.39      $13.67         2.0%
     Power Center & Shopping Center Market Statistics From CoStar Property

                                                                                                                                                                                                 31
     Sarasota / bradenton
     707,224 People
     19.0 Million SF of Shopping Centers

      SaRaSOta MSa REtaiL LEaSinG Data
             Submarket Name                                       Inventory            Occupancy Rate                                            Rental Rate
                                                                                     MY11    YE11     Change                        MY11            MY11     Change
      Manatee                                                      7,442,354         87.0%       87.9%             0.9%             $12.42          $13.10         5.5%
      Manatee Outlying                                              587,588          90.0%       90.4%             0.4%             $15.92          $15.72         -1.3%
      Sarasota                                                     8,453,047         88.3%       88.1%             -0.3%            $16.06          $15.79         -1.6%
      Sarasota Outlying                                            2,505,996         81.4%       80.4%             -1.0%            $11.37          $11.37         0.0%
      Sarasota Market Total                                       18,988,985        86.9%        87.1%             0.1%            $14.01           $14.15         1.0%
      Power Center & Shopping Center Market Statistics From CoStar Property




                                                                                                                                     “Since 2007, our industry, tenants,
     Market Makers                                                                                                                   vendors and customers have
                                                                                                                                     adjusted to significant changes in
     Cortez Commons                                                                                                                  the Florida economy. State and
     MLG Commercial by LandQwest Commercial - Bradenton                                                                              local governments must now make
     Big Lots - 39,795 SF                                                                                                            similar, significant adjustments for
     Completion Mid ‘11                                                                                                              permanent recovery to occur”
     Jacaranda Commons                                                                                                                                            - Seth Layton
     North American Development Group - Venice                                                                                                            The Sembler Company
     94,700 SF - Publix, CVS
                                                                               Market Overview
     plaza venezia
     Michael Collard Properties - Venice                                       Sarasota and Manatee counties follow a lineal form of development
     80,000 SF - Publix Anchored                                               through the county.
     Opening 4Q12
                                                                               The original and more mature area through this region is the US-41
     Siesta promenade                                                          corridor. This was the focus of activity with its access to the beaches
     Benderson Development - Sarasota
     261,600 SF Office/Retail                                                  and resorts. This attracted people and development close by the airport
                                                                               and the university. Both of the existing Westfield malls are on the US-41
     university Groves                                                         corridor.
     W. G. Mills - Sarasota
     180,000 SF                                                                New growth in the county is now along I-75 and its intersection running
     Opened Fall ‘11
                                                                               north and south on the eastern border of the two county area. The
     university park Center                                                    majority of growth has been at the intersections. The southern Sarasota
     Benderson Development - Sarasota                                          county area (Bee Ridge & Clark Road) is mature and mostly built out, while
     Kohl’s, Fresh Market                                                      the north end (SR 64/SR 70) is newer and less developed. The proposed
                                                                               development of the mall on University Parkway has caused it to become
     university parkway Shopping Center
     Heritage Development Company - Sarasota                                   the epicenter of retail in the eastern core.
     Walmart Supercenter, Walgreens
     Opened Winter ‘11                                                         For a non-metro market area, Sarasota/Bradenton has had significant
                                                                               expansion of big boxes based on the projected Benderson mall plans for
     university town Center phase ii                                           eastern county (University Parkway and I-75). This has attracted tenants
     Benderson Development - Sarasota
     1.8 Million SF Mixed-Use - Nordstrom, Muvico                              such as Super Wal-Mart, Stein Mart, Ross, Guitar Center, and Home Depot.

     uS-41 & wood Street publix                                                                ManatEE-SaRaSOta EMpLOyMEnt Data
     Shagbark Properties - Sarasota                                                                                             MY11            YE11      Change
     46,000 SF free-standing Publix                                                           Workforce Size                   301,928          299,254   -0.89%
     Opened Fall’11                                                                           Unemployment Rate                 10.9%            9.8%     -1.10%
                                                                                               Source: Florida Research and Economic Database

32
                                   Martin / St. Lucie
                                   426,385 People
                                                                                                             pORt St. LuCiE EMpLOyMEnt Data
                                   10.5 Million SF of Shopping Centers                                                                           MY11                YE11        Change
                                                                                                            Workforce Size                      187,038             186,135      -0.49%
                                                                                                            Unemployment Rate                    12.5%               11.2%       -1.30%
                                       Market Overview                                                      Source: Florida Research and Economic Database



$16.35
average rental rate
                                       Martin & St. Lucie Counties are located along the eastern
                                       coast of Florida, known as the Treasure Coast. Some would suggest the Treasure Coast is making
                                       its way to becoming the “Research Coast,” and with good reason.
down 9% since
year-end 2010                          WHERE’S THE RETAIL? WHERE THE JOBS ARE!

                                       Research bio-tech companies like Torrey Pines and Vaccine and Gene Therapy Institute Florida
                                       (VGTI) are set to create an estimated 420 jobs by 2013. In addition, Digital Domain’s 150,000 SF
89.3%
occupancy
                                       corporate office and production studio will soon be completed with plans to hire an estimated
                                       500 people by 2014. Job creation continues to drive retail markets along the Treasure Coast. St.
                                       Lucie West and Tradition are a good example of this.
higher than statewide
average this quarter                   Rent ranges from $12.00 PSF - $25.00 PSF NNN. Market rental rates have remained constant
                                       over the past 6 months, however occupancy continues to decrease. It has been indicated that
                                       the increase in vacancy levels is due in large part to many retailers unable to pay their rent due

12.5%
                                       to overall poor economic conditions.

unemployment                           Due to lack of pre-leasing activity in the market, many proposed retail centers have either
                                       pushed back construction dates, or remain “on-hold” indefinitely.

                                       Most of the retail leasing transactions are occurring in the St. Lucie West Blvd corridor, Jensen
                                       Beach Blvd/US1 corridor (includes the St. LuCiE HiStORiCaL REnt & OCCupanCy
                                       Jensen Beach Mall) and the Monterey
                                                                                    95%                                                                                          $21.00
                                       Road/US1 corridor in Stuart.                                                              Occupancy
                                                                                        94%                                                                    Rental Rate
                                                                                                                                                                                 $20.00
  Market Makers                                                                         93%
                                                                                        92%                                                                                      $19.00
  Harbor point                                       Ocean breeze plaza                 91%
                                                     Century Retail                                                                                                              $18.00
  North American Development                                                            90%
  Group & Michael Collard                            Redevelopment - Publix             89%                                                                                      $17.00
  Properties - Vero Beach                                                               88%
  92,000 SF - Publix Anchored                        Rivergate plaza                                                                                                             $16.00
                                                                                        87%
  Opening Fall-12                                    The Sembler Company
                                                                                        86%                                                                                      $15.00
                                                     Port St. Lucie
  Jensen beach Retail                                89,400 SF Redevelopment
  DeBartolo - Jensen Beach                           Publix Anchored
                                                                                       Power Center & Shopping Center Statistics From CoStar Property Report
  50,000 SF Retail - Planned

     MaRtin/St. LuCiE REtaiL LEaSinG Data
                  Submarket Name                                 Inventory      Occupancy Rate                                                Rental Rate
                                                                              MY11    YE11     Change                             MY11           YE11     Change
     Fort Pierce                                                  1,840,351   83.7%        83.8%                0.1%             $13.46               13.30                  -1.19%
     Martin                                                       2,294,907    92.4%        89.8%              -2.7%             $16.80            $20.51                    22.08%
     Martin Inland                                                 52,206     100.0%       100.0%               0.0%              0.0%              0.0%                      0.00%
     Port St Lucie                                                4,819,184    89.2%        89.3%               0.1%             $15.31            $16.11                     5.26%
     St Lucie Coastal                                              88,313      90.1%        87.6%              -2.5%             $16.19            $16.19                     0.00%
     St Lucie Inland                                              1,445,854    92.0%        92.7%               0.7%             $20.70            $20.05                    -3.11%
     St. Lucie Market Total                                      10,540,815   89.8%         89.3%              -0.5%            $15.03             $16.35                     8.82%
     Power Center & Shopping Center Market Statistics From CoStar Property

                                                                                                                                                                                      33
                Fort Myers / Cape Coral
                625,310 People
                26.6 Million SF of Shopping Centers
                                                                                      Ft. MyERS / CapE CORaL EMpLOyMEnt
                                                                                                                        MY11              YE11      Change

$14.03
average rental rate
                                                                                     Workforce Size
                                                                                     Unemployment Rate
                                                                                                                    `
                                                                                                                        269,450
                                                                                                                        11.6%
                                                                                     Source: Florida Research and Economic Database   `
                                                                                                                                          271,425
                                                                                                                                          10.2%
                                                                                                                                                    0.73%
                                                                                                                                                    -1.40%


down from a peak of over
$20 in 2006




87.1%
occupancy

relatively stable for the
eight consecutive quarter




10.2%
unemployment

                       Market Overview
                       Over the second half of 2011 we saw continued improvement in the Southwest Florida economy overall. Jobs were
                       added, home prices were up, sales were up, and permit volumes increased for new residential and commercial
                       development. Improvements in the housing market have led to increased interest in land for new residential
                       development. Interest is coming from existing builders and developers in the Southwest Florida marketplace,
                       as well as new entrants. Some of the new entrants include Centerline Homes and Neal Communities, which all
                       have large residential development operations in other areas of Florida. This resurgence of interest in residential
                       development will likely lead to further improvements in the retail sector over the next 12-24 months because the
                       retail sector has closely followed behind residential development.

                      Headwinds remaining include the steady stream of bank REO properties continuing to hit the market, slow job
                      creation, and high commodity prices. The steady stream of bank REO is putting continued downward pressure
                                       on pricing, which is hampering new development. This is likely to continue for another 12-18
                                       months. As the slow job creation continues, it negatively affects primary housing demand and
  “The renaissance of The              can cause an imbalance in the housing market. Further improvements in job creation; however,
  Downtown River District has
                                       are expected over the next 12 months. Lastly, high oil and other commodity prices continue to
  been a powerful, tangible
  example of how modern                hamper businesses’ ability to hire additional employees. The high prices are likely to remain
  infrastructure,      outstanding     until the Federal Reserve raises interest rates, which is not likely to happen until 2014 or later.
  design and The Arts and Culture
  can drive economy in a city.         Notable new retail buildings and developments are being constructed along the Ben Hill Griffin
  The best is yet to come. As any      Parkway corridor. These new developments include the addition of an Olive Garden Restaurant
  downtown goes, so goes the           and Connors Steakhouse on outparcels located at the Gulf Coast Town Center. Other notable
  rest of the city”                    retail developments in the area include two new Publix anchored shopping centers located on
                                       Bayshore Road and at the SE corner of US 41 and Del Prado Blvd.
             - Mayor Randy Henderson
                     City of Fort Myers
                                        The Collier County, Southern Lee County (Bonita Springs & Estero), and Cape Coral submarkets
                                        are starting to see improvements in vacancy rates as well as rental rates. These improvements
                       have yet to be seen in the Central Fort Myers and Lehigh Acres, where there was a heavy concentration of
                       overbuilding of retail space during the 2005-2007 years.
34
     Market Makers
                                                                                         “Florida continues to be a priority state for Beall’s
     Shoppes at Delprado                                                                 Outlet. ‘Right sizing’ our stores is a major focus. We
     North American Development Group                                                    recently completed relocations and expansions in
     & Paradise Ventures - North Ft. Myers                                               Lehigh Acres, Melbourne, Marianna and Bartow. Seven
     66,560 Publix, Walgreens                                                            more projects are slated for October 2011 openings
     Opening 3Q12                                                                        in Fort Myers, Ocala, Tampa, Stuart, Lake City, Marco
                                                                                         Island and Poinciana. In the last 2 months, we also
     university plaza
     Jacobs Group - Fort Myers                                                           completed remodels in Pensacola (2), St. Cloud, St.
     Opening Mid ‘12                                                                     Augustine and Clermont. Our prototypical ‘sweet spot’
                                                                                         is 25,000 SF.”
     Estero Crossings
     The Wilder Companies - Estero                                                                                                   - Jim Simpson
     310,000 SF Open-Air Retail                                                                                                       Bealls Outlet

     publix at Eagle Landing
     Halvorsen - Ft. Myers
     70,000 SF Publix Anchored
     Opened Late ‘11                                                                                                            “In general, we’ve seen
                                                                                                                                activity       significantly
     patriot plaza                                                                                                              increase at our better
     Grubb & Ellis - Cape Coral                                                                                                 properties     while     we
     225,000 SF Veteran’s Medical Facility                                                                                      still struggle with those
     Opened 2Q11                                                                                                                located in less desirable
                                                                                                                                areas or on the fringe
                      SOutHwESt FLORiDa HiStORiCaL REnt & OCCupanCy                                                             of the major retail
                                                                                                                                corridors. We are working
                         96%                                                                                  $21.00
                                                                                               Occupancy
                                                                                                                                with multiple national
                         94%                                                                   Rental Rate
                                                                                                              $20.00            restaurant chains that are
                                                                                                              $19.00            new to the area which is a
                         92%
                                                                                                              $18.00
                                                                                                                                positive sign”
                         90%
                                                                                                              $17.00                    - Matthew Yaniglos, SCDP
                         88%                                                                                                              LandQwest Commercial
                                                                                                              $16.00
                         86%                                                                                  $15.00
                         84%                                                                                  $14.00


                       Power Center & Shopping Center Statistics From CoStar Property Report




FORt MyERS REtaiL LEaSinG Data
       Submarket Name                                            Inventory                       Occupancy Rate                          Rental Rate
                                                                                               MY11    YE11     Change         MY11         YE11     Change
Bonita Springs                                                    2,457,017                    79.9%         81.1%     1.2%    $13.90        $13.88          -0.1%
Cape Coral                                                        4,784,572                    85.5%         86.9%     1.4%    $13.88        $13.96          0.6%
Charlotte County                                                  4,676,145                    90.3%         91.1%     0.8%    $13.72        $13.86          1.0%
City of Ft Myers                                                  2,604,121                    86.8%         86.2%     -0.5%   $11.83        $11.16          -5.7%
Estero                                                             720,121                     83.6%         86.1%     2.5%    $13.33        $13.91          4.4%
Lehigh                                                             729,502                     91.1%         91.9%     0.8%    $16.20        $16.42          1.4%
North Ft Myers                                                    1,325,081                    87.3%         86.2%     -1.1%    $9.94        $10.46          5.2%
South Ft Myers / San Carlos                                       8,849,036                    85.4%         86.2%     0.8%    $14.91        $14.06          -5.7%
The Islands                                                        502,645                     98.7%         98.2%     -0.5%   $37.45        $37.45           0.0%
Ft Myers Market Total                                           26,648,240                     86.4%         87.1%     0.7%    $14.26        $14.03         -1.6%
Power Center & Shopping Center Market Statistics From CoStar Property




                                                                                                                                                                     35
                                      naples / Collier
                                      343,0236 People
                                      11.6 Million SF of Shopping Centers
$16.63
average rental rate

the third highest
statewide this quarter




90.5%
occupancy

the second highest
statewide this quarter



9.5%
                                                                                      napLES EMpLOyMEnt Data
                                                                                                                        MY11          YE11      Change
unemployment                                                                         Workforce Size                    138,631        143,164   3.17%
                                                                                     Unemployment Rate                  11.3%          9.5%     -1.80%
                                                                                     Source: Florida Research and Economic Database
                      Market Overview
                      The economy is gradually warming up in Collier County, as it is in many of Florida’s retirement and vacation
                      hotspots. The County, which blossomed to 333,000 residents over the past two decades, has now slowed down its
                      projections to 400,000 residents by 2020. (Florida Demographic Database, August 2010). Collier County remains
                      attractive for residential and retail growth given its quality of life, beautiful beaches, and upscale environment.

                      Future growth is largely dependent upon job creation and snowbird relocations. Collier County is actively working
                      on holding and expanding Arthrex, an international medical equipment company headquartered in North Naples.
                      Arthrex plans to construct a 198,699-square-foot building on 50 acres in Ave Maria to grow its facilities for over
                      1,500 employees. This is good news for the county where the December unemployment rate was 9.5%.

                      2011 showed signs of promise in both the housing and tourism markets. Though the median price of a residential
                      unit ($175,000) is down 4% from 2010, the number of sales in May 2011 was 94% better than May 2007, and
                      available inventory is down to 7,541 residential units.

                      Most importantly, taxable sales in Collier County rose 6% for the year (March 2010-March 2011) according to the
                      Florida Department of Revenue, and this bodes well for retailers looking forward.

                      One of the hotspots for retail continues to be The Mercato which recently added Chipotle Mexican Grill, Sperry
                      Topsider, Rocky Patel Burn Cigar Lounge, Yogurbella, Charming Charlies, and Bio NY apparel. Pikolino’s, an
                      international shoe store from Spain, is planning its first U.S. location in Naples at Mercato.

                      Fifth Avenue South is a growth hot spot in central downtown Naples with the formation of its new Business
                      Improvement District and the expansion of several existing businesses. These include The Inn on Fifth, which will
                      redevelop the property across from its existing location with a Chase Bank and additional boutique hotel rooms,
                      and Fifth Avenue Design Gallery.

                      New development in East Naples is being proposed on US 41 and 951 and starting with a Chase Bank. A 170,000 sq.
                      ft. retail development project is also proposed on 40 acres at Wilson and Golden Gate Blvd. in Golden Gate Estates.


36
                                                                                              “The well performing anchored
SOutHwESt FLORiDa CapitaL MaRkEtS tREnDS                                                      properties are seeing some small
                                                                                              shop absorption. However, rents
  $0.60                                                                      8.0%
                                                                                              continue to remain down 20%-
                                                                             7.5%             30% from their peak”
  $0.45
                                         Rolling 12-Mo Volume                7.0%                                     - Ryan Joyce
                                         (In Billions)

                                         Average Cap Rate
                                                                                                                Kite Realty Group
  $0.30                                                                      6.5%
                                                                                                                      “There is a light at the end of
                                                                             6.0%
  $0.15                                                                                                               the tunnel, but the market in the
                                                                             5.5%                                     southeast region is still unsteady.
                                                                                                                      Retailers such as Dick’s Sporting
  $0.00                                                                      5.0%                                     Goods and HH Gregg are now
                                                                                                                      making their way into South
Source: Real Capital Analytics                                                                                        Florida for the first time. They
                                                                                                                      are taking advantage of the
                                                                                                                      more desirable spaces that are
                                                                                                                      now being leased at lower rates.
                                                                                                                      When the market does bounce
                                                                                                                      back, we will have a whole
                                                                                                                      new list of clientele in the area
                                                                                                                      and more retail options for the
                                                                                                                      consumer”

                                                                                                                                              - Terry Salzman
                                                                                                                                     SRS Real Estate Partners




                       Market Makers
                       promenade at naples
                       GLL Real Estate by The Sembler
                       Company - Naples
                       Golfsmith - 35,000 SF
                       Jo-Ann Fabrics - 25,000 SF

    napLES REtaiL LEaSinG Data
            Submarket Name                                      Inventory             Occupancy Rate                         Rental Rate
                                                                                    MY11    YE11     Change        MY11         YE11     Change
    East Naples                                                  2,232,111          85.7%   89.8%      4.1%       $15.06         $12.95      -14.0%
    Golden Gate                                                   712,964           92.9%   91.4%      -1.5%      $15.78         $14.88       -5.7%
    Lely                                                          534,034           58.5%   73.0%      14.5%      $14.55         $16.61      14.2%
    Marco Island                                                  777,865           94.6%   95.5%       0.9%      $18.82         $19.39       3.0%
    Naples                                                        522,581           93.3%   96.7%       3.4%      $16.08         $16.95       5.4%
    North Naples                                                 6,469,008          90.7%   91.3%       0.6%      $18.18         $17.98       -1.1%
    Outlying Collier County                                       319,130           93.0%   83.6%      -9.4%      $11.93         $11.79       -1.2%
    Naples Market Total                                         11,567,693          89.2%   90.5%      1.2%      $16.93          $16.63       -1.8%
    Power Center & Shopping Center Market Statistics From CoStar Property


                                                                                                                                                            37
                                      palm beach
                                      1.33 Million People
                                      38.8 Million SF of Shopping Centers



$17.24
average rental rate

the third highest
statewide this quarter




90.0%
occupancy

steadily increasing for
the past five quarters




9.7%
unemployment
                                                                                     paLM bEaCH EMpLOyMEnt Data
                                                                                                                      MY11            YE11      Change
                                                                                    Workforce Size                   620,316          618,909   -0.23%
                                                                                    Unemployment Rate                 11.0%            9.7%     -1.30%
                                                                                     Source: Florida Research and Economic Database

                      Market Overview
                      The Palm Beach County market is continuing to show minor improvements through the end of 2011 and the
                      beginning of 2012. With the down economy and upcoming presidential election, there is still some uncertainty
                      of job creation. Though vacancy rates remain high, new businesses are becoming optimistic about expanding. A
                      decrease in new construction will ultimately help the high but stable vacancy rates slowly begin to recover in 2012.

                    Occupancy has slightly increased with activity in the large transactions market and big box space. Palm Beach
                    County’s vacancy rate has decreased 1.5%, along with an increase in rent of about 1% in the fourth quarter of 2011
                    compared to 2010. Some users that are beginning to take over vacant Winn-Dixie boxes, and seek new locations
                                              include fitness centers (Youfit), grocers (Aldi, Publix), HHGreg, and Wal-Mart.
  “Values for core properties have
  rebounded, perhaps at a rate that           Available end-cap and out-parcel spaces once occupied by Blockbuster are starting to
  is faster than anticipated. Overall         become occupied by small restaurants (Chipotle, Dunkin Donuts, frozen yogurt) and
  yields on a relative basis are, however,    banks (Bank United, Wells Fargo and Chase). Other developing businesses include
  attractive to the institutional investor.   Batteries Plus and discount retailers (Dollar Tree, Family Dollar). Palm Beach County
  Despite the improved core valuations,
                                              has also seen a significant arrival of casual dining restaurants (Brio Tuscan Grill, Corner
  there continues to be a significant
  volume of distressed investment             Bakery Café, and Burger Bar by Chef Allen).
  opportunities for transistional assets.
  This level of activity should continue to      Population growth and a boost in visitors during the winter months prove to be benefiting
  increase through the end of the year”          the Palm Beach retail market, especially in downtown West Palm Beach. Also, an increase
                                                 in spending during the holiday season has helped local retailers become optimistic for a
                             - Casey Cummings    promising 2012.
                           RAM Realty Services

38
 paLM bEaCH HiStORiCaL REnt & OCCupanCy
  93%                                                                                       $22.00
  93%
                                                                                            $21.00
                                                                          Occupancy
  92%                                                                     Rental Rate                        paLM bEaCH CapitaL MaRkEtS tREnDS
  92%                                                                                       $20.00
  91%                                                                                                          $0.75                                                                   9.0%
  91%                                                                                       $19.00
                                                                                                                                                Rolling 12-Mo Volume
                                                                                                                                                (In Billions)                          8.5%
  90%                                                                                                          $0.60                            Average Cap Rate
  90%                                                                                       $18.00                                                                                     8.0%
  89%                                                                                       $17.00
                                                                                                               $0.45                                                                   7.5%
  89%
  88%                                                                                       $16.00             $0.30                                                                   7.0%

                                                                                                                                                                                       6.5%
                                                                                                               $0.15
 Power Center & Shopping Center Statistics From CoStar Property Report                                                                                                                 6.0%

                                                                                                               $0.00                                                                   5.5%


                                                                                                             Source: Real Capital Analytics

Market Makers
palm beach Mall                                                                         Shoppes at woolbright
new England Development - west palm beach                                               Woolbright Development - Boynton Beach
Redevelopment - palm beach Fashion Outlets                                              156,814 SF - Publix Anchored
Opening 2013
                                                                                        whitworth Farms
Legacy place                                                                            Monroe’s Prestige Group - Boynton Beach
GLL Real Estate by The Sembler Company -                                                112,375 SF - Publix Anchored
Palm Beach Gardens
Shoe Carnival - 11,633 SF, Opening 1Q12                                                                                                   “Capital markets in the
                                                                                                                                          Southeast continue trends we
publix at Lake worth                                                                                                                      have witnessed since the start
Brandon Partners - Lake Worth                                                                                                             of 2010, as core properties
28,000 SF free-standing Publix                                       “The last three years have been extremely                            receive the majority of
Opened Apr-’11                                                       difficult for Florida’s shopping center                              attention from investors and
                                                                     industry.     Nevertheless, all of us at                             lenders, and cap rates maintain
publix at palm beach plaza                                           Woolbright Development are strong                                    a steady decline since their
T.L. Pittman - West Palm Beach                                       believers in the long-term growth outlook                            peak in November of 2009”
Redevelopment, Publix - 45,000 SF                                    for Florida’s future. The worst of this crisis
                                                                     is behind us and our best days are ahead                                                    - Whitney Knoll
publix at Riviera beach                                              of us”                                                                                 Newmark Knight Frank
Brandon Partners - Riviera Beach
28,000 SF free-standing Publix
                                                                                                                 - Duane Stiller
Opened Late ‘11
                                                                                                       Woolbright Development


   paLM bEaCH REtaiL LEaSinG Data
          Submarket Name                                                 Inventory                 Occupancy Rate                                            Rental Rate
                                                                                                 MY 11   YE 11    Change                               MY 11   YE 11     Change
  Boca Raton                                                             5,058,642                   90.8%         92.2%                1.4%          $24.11           $21.36      -11.4%
  Boynton / Lantana                                                      6,093,274                   86.7%         87.7%                1.0%          $18.08           $17.29       -4.4%
  Delray Beach                                                           4,036,040                   88.0%         89.3%                1.3%          $16.14           $16.19       0.3%
  Jupiter                                                                2,898,132                   93.0%         92.8%                -0.2%         $20.83           $19.24       -7.6%
  North Palm Beach                                                       4,547,010                   87.9%         88.6%                0.7%          $16.08           $15.27       -5.0%
  Palm Beach                                                             2,825,442                   89.8%         91.3%                1.5%          $19.78           $20.12       1.7%
  Palm Springs / Lake Worth                                              1,109,636                   92.7%         89.8%                -2.9%         $12.90           $12.79       -0.9%
  Royal Palm Beach / Wellington                                          4,888,760                   91.1%         91.3%                0.2%          $18.03           $16.95       -6.0%
  West Palm Beach                                                        7,372,132                   87.8%         88.9%                1.1%          $15.63           $15.77        0.9%
  Palm Beach Market Total                                                38,829,068              89.2%             90.0%                0.8%          $18.00           $17.24      -4.5%
  Power Center & Shopping Center Market Statistics From CoStar Property



                                                                                                                                                                                              39
                                    broward / Ft. Lauderdale
                                    1.75 Million People
                                    52.6 Million SF of Shopping Centers



$17.67
average rental rate

the 2nd highest
statewide this quarter




90.4%
occupancy

relatively stable since
year end 2009




8.6%
unemployment
                                                                          bROwaRD COunty EMpLOyMEnt Data
                                                                                                             MY11           YE11      Change
                                                                          Workforce Size                    987,898         978,951   -0.91%
                                                                          Unemployment Rate                  9.5%            8.6%     -0.90%
                                                                           Source: Florida Research and Economic Database
                             Market Overview
                             Broward County, with a stabilized population of over 1.7 million, continues to play an integral role in the
                             South Florida regional economy. The Atlantic Ocean to the east and the Everglades system to the west
                             create natural boundaries for the region, which is largely built-out, so future growth will increasingly take
                             the form of urban infill development and redevelopment.

                             Port Everglades remains one of South Florida’s strongest economic engines with annual operating revenues
                             of more than $66 million. More than 5,300 ships call at Port Everglades in a year forming the basis of a
                             diverse maritime operation that includes a thriving cruise industry and a reputation as the “world’s best
                             cruise port.”

                             Nova Southeastern University is the nation’s seventh largest, not-for-profit, independent university, with
                             more than 28,000 students and 103,000 alumni on a sprawling, 300-acre Fort Lauderdale-Davie campus.

                             Retail development in Broward County is still very limited with less than a handful of smaller retail projects
                             and banks coming out of the ground. Kohls, Aldi, Dicks Sporting Goods, and HH Gregg aggressively
                             pushed into South Florida during 2010 and 2011 but have focused on second generation space. These
                                                 retailers are pumping new life into some older, very well located centers that are
                                                 being redeveloped to accommodate them. Michaels, Pet Supermarket, Ross, Toys R
  “Capital is available again for retail. Debt
  and equity are readily available for the right Us/Babies R Us and Winn Dixie have also been active in various submarkets.
  project and the right sponsor.”

                                    - James Fried
                                     Aztec Group


40
 bROwaRD CapitaL MaRkEtS tREnDS
    $0.8                                                                             9.0%      bROwaRD HiStORiCaL REnt & OCCupanCy
                                  Rolling 12-Mo Volume
    $0.7                                                                                         96%                                                                                    $20.00
                                  (In Billions)                                      8.5%
    $0.6                          Average Cap Rate                                                                                                                      Occupancy
                                                                                                 95%                                                                                    $19.50
                                                                                     8.0%                                                                               Rental Rate
    $0.5
                                                                                                 94%                                                                                    $19.00
    $0.4                                                                             7.5%
                                                                                                 93%                                                                                    $18.50
    $0.3
                                                                                     7.0%        92%                                                                                    $18.00
    $0.2
                                                                                     6.5%        91%                                                                                    $17.50
    $0.1
                                                                                                 90%                                                                                    $17.00
    $0.0                                                                             6.0%
                                                                                                 89%                                                                                    $16.50
 Source: Real Capital Analytics

                                                                                                Power Center & Shopping Center Statistics From CoStar Property Report

Market Makers
Sunshine plaza                                                  the Fountains
Global Fund Investments - Tamarac                               Developers Diversified Realty - Plantation
Marshalls - 27,720 SF, Opening Late ‘12                         477,000 SF Redevelopment
                                                                Completed - Kohl’s, Marshalls/
pompano beach publix                                            HomeGoods                                                     “With the slow but steady absorption of
Brandon Partners - Pompano Beach                                Dick’s Sporting Goods, Jo-Ann Fabrics                         vacancy grocery stores and well located
Redevelopment, Publix - 54,000 SF                                                                                             vacant boxes in existing centers our anchor
Opening ‘12                                                     pembroke Crossing                                             tenant market is beginning to stabilize. The
                                                                Prudential - Pembroke Pines
                                                                289,000 SF Redevelopment - Old Navy,                          new Borders vacancies will create more
bal Harbour Square
Ramco Gershenson - Ft. Lauderdale                               Babies R Us, Dick’s, PetSmart, ULTA                           vacancy but most are well positioned and
147,483 SF Redevelopment - Michael’s,                           Opened Summer ‘11                                             will be reconfigured to accommodate new
PetSmart, ULTA, Chase Bank, Chipotle,                                                                                         tenants to our market as we as some of
Pei Wei Asian Diner                                             Regions bank plaza                                            the more established rertailrs that have
Opened Fall ‘11                                                 Ft. Lauderdale                                                been in theis market for decades. There
                                                                Former Winn-Dixie Redevelopment -                             is an actual shortage of opportunites in
Coral Landings iii                                              Dick’s                                                        some submarkets for many of the smaller
Stiles - Coral Springs                                                                                                        national shop merchants, resteraunts, and
155,000 SF Redevelopment                                        the publix at Galleria                                        banks.
Aldi, Opened 4Q11                                               Ft. Lauderdale
                                                                                                                                                                        - Alan Karrh
                                                                Publix - 28,000 SF, Opened Aug-’11
                                                                                                                                                                          Stiles
Coral Square Mall
941,000 SF
Kohl’s - 99,000 SF, Opened ‘11

           bROwaRD REtaiL LEaSinG Data
                 Submarket Name                                         Inventory             Occupancy Rate                                                Rental Rate
                                                                                            MY11    YE11     Change                            MY11            YE11     Change
           Commercial Blvd                                              1,348,384           94.7%         94.9%              0.2%             $14.25             $14.68               3.0%
           Cypress Creek                                                1,460,217           88.2%         89.7%              1.5%             $12.67             $12.89               1.7%
           Downtown Fort Lauderdale                                     1,038,463           96.4%         94.7%              -1.7%            $23.01             $25.21               9.6%
           Fort Lauderdale                                              6,305,448           91.4%         91.1%              -0.3%            $20.23             $18.30               -9.5%
           Hallandale                                                   1,922,040           92.1%         93.0%              0.9%             $15.51             $16.59               7.0%
           Hollywood                                                    5,729,284           91.9%         92.9%              1.0%             $18.58             $19.85               6.8%
           NW Broward / Coral Springs                                   6,663,462           86.5%         86.1%              -0.4%            $15.67             $16.13               2.9%
           Outlying Broward                                             2,469,769           90.3%         91.6%              1.3%             $19.97             $20.62               3.3%
           Plantation                                                   7,658,771           86.1%         88.7%              2.6%             $15.47             $15.58               0.7%
           Pompano Beach                                                8,109,563           88.9%         89.8%               1.0%            $17.13             $16.02               -6.5%
           Sawgrass Park                                                1,278,861           93.8%         96.2%               2.4%            $15.28             $19.67               28.7%
           Southwest Broward                                            8,604,941           90.0%         90.8%               0.7%            $21.93             $21.37               -2.6%
           Broward Market Total                                        52,589,203           89.6%         90.4%              0.9%             $17.69             $17.67               -0.1%
             Power Center & Shopping Center Market Statistics From CoStar Property

                                                                                                                                                                                              41
                                          Miami
                                          2.52 Million People
                                          48.2 Million SF of Shopping Centers
                                                                                                  MiaMi EMpLOyMEnt Data
                                                                                                                                    MY11           YE11       Change
                                                                                                 Workforce Size                   1,311,825       1,311,175   -0.05%
                                                                                                 Unemployment Rate                  13.9%          10.3%      -3.60%


$21.55
                                                                                                 Source: Florida Research and Economic Database




average rental rate
decreased 1% from the                                                                                                  “Retailers are realizing that it
third quarter                                                                                                          is far better to take advantage
                                                                                                                       of the ‘urban factor’ by being
                                                                                                                       out on the street instead of in
                                                                                                                       the mall. It is also true that
                                                                                                                       retail demand, to an extent
94.7%
occupancy
                                                                                                                       never seen before, is being
                                                                                                                       driven by the international
                                                                                                                       consumer        interested   in
the highest statewide                                                                                                  shopping in an urbanized and
this quarter                                                                                                           diverse community”

                                                                                                                                     - Bernard Zyscovich, FAIA
                                                                                                                                          Zyscovich Architects


10.3%
unemployment
                               Market Overview
                               Retail in Miami-Date has the lowest vacancy in the state and with little new supply it’s likely to remain stable
                               through 2012. Additionally, Miami-Dade county’s unique ties to Latin America create a more globally linked
                               economy. ``It’s a story of Miami got hit harder, but it seems to be recovering at a better rate than the rest of
                               the country,’’ said Chris Macke, Costar’s senior real estate strategist. ``With international trade ramping up,
                                              that’s going to disproportionately help Miami.’’

 “When you get into 2012 and 2013,                The Genting Group’s purchase of the Omni Center represents the first step of development
 Miami should be one of the top                   for Resorts World Miami, a proposed project that has yet to receive approval. The acquisition
 performers”                                      of the Omni Center includes the 527-room Hilton Hotel, 2,500-space garage, 300,000 square
                                                  feet of offices, and 600,000 square feet of retail space. Along with this project would come
                              -Chris Lafakis
                                  Moody’s
                                                  many changes to the downtown Miami retail landscape.

                                                  Miami-based architecture and planning firm Arquitectonica designed the 30-acre Resorts
 “With sales continuing to grow
                                               World Miami. Plans include four new hotels with more than 5,000 rooms; two residential towers
 in South Florida, Tijuana Flats
 is committed to expanding                     with up to 1,000 units; a luxury retail galleria; a 3.6-acre rooftop lagoon and natural sand beach;
 into Dade County. It has been                 more than 50 restaurants, lounges, bars and nightclubs; a high-tech multimedia entertainment
 tough to find the premium sites               area showcasing the music and culture of Florida and South America; and 700,000 square feet of
 with such low vacancy in all the              convention and meeting space.
 major markets. We are looking
 forward to opening locations                  Genting is working with local property owners and officials to help re-envision the 3-mile
 within the next 12 months.                    baywalk that, in part, runs along its property, next to Adrienne Arsht Center for the Performing
 This market has been on our                   Arts in downtown Miami. Genting wants to transform the baywalk into a 150-acre leisure and
 radar for years and we are                    entertainment area beginning at the Miami River and running north to Margaret Pace Park. The
 excited to dive into it full force”           contiguous baywalk would link various properties including Bayfront Park, Bayside Marketplace,
                                               the American Airlines Arena and Museum Park, including the under-construction Miami Art
                 - Matthew Livingston
              Tijuana Flats Burrito Co.        Museum and Miami Science Museum, currently under design.


42
 MiaMi CapitaL MaRkEtS tREnDS                                                        MiaMi HiStORiCaL REnt & OCCupanCy
    $1.2                                                                  8.5%        98%                                                                                  $29.00
                                  Rolling 12-Mo Volume
                                                                                      97%                                                                                  $28.00
                                                                                                                                                             Occupancy
                                  (In Billions)
    $1.0                                                                  8.0%                                                                               Rental Rate
                                  Average Cap Rate
                                                                                      96%                                                                                  $27.00
                                                                          7.5%
    $0.8                                                                              95%                                                                                  $26.00
                                                                          7.0%
    $0.6                                                                              94%                                                                                  $25.00
                                                                          6.5%        93%                                                                                  $24.00
    $0.4
                                                                          6.0%        92%                                                                                  $23.00
    $0.2                                                                  5.5%        91%                                                                                  $22.00
                                                                                      90%                                                                                  $21.00
    $0.0                                                                  5.0%


 Source: Real Capital Analytics                                                      Power Center & Shopping Center Statistics From CoStar Property Report



Market Makers
                                                                                   the palms town & Country
Miami airport village                                                              Flagler Development Group - Kendall
Courtelis Company & The Easton Group - Miami                                       700,000 SF - Publix, Kohl’s, Nordstrom Rack
500,000 SF Mixed Use                                                               Phase I Open, Phase II Under Construction
Opening ‘12
                                                                                   the westchester
publix at Hialeah                                                                  Midwood Investment & Development - Westchester
Boos Development / Publix Owned - Hialeah                                          200,000 SF - Publix, TJ Maxx, Home Depot
Publix - 39,000 SF, Open                                                           Under Construction

publix at plaza De Leon                                                            vicenza plaza
Global Fund Investments / Publix Owned - Miami                                     Courtelis Company - Hialeah Gardens
Publix - 47,000 SF, Open                                                           74,000 SF - Wal-Mart Neighborhood Market, Chase Bank
                                                                                   Opening Summer-12
Retail Redevelopment
Courtelis Company - Palmetto Bay                                                   Shore Square
17,000 SF - Fuddruckers Restaurant, Preschool                                      56,000 SF - CVS Pharmacy, Family Dollar, Little Caesars
                                                                                   Under Construction


  MiaMi MSa REtaiL LEaSinG Data
        Submarket Name                                       Inventory      Occupancy Rate                                            Rental Rate
                                                                          MY11    YE11     Change                         MY11           YE11     Change
 Aventura                                                     2,336,160   96.6%      97.5%              0.9%             $31.53             $33.96                7.7%
 Biscayne Corridor                                             291,373    81.3%      79.0%              -2.3%            $22.12             $16.43               -25.7%
 Brickell                                                      106,419    100.0%     100.0%             0.0%             $45.00              $0.00              -100.0%
 Coconut Grove                                                 489,256     97.7%      96.6%             -1.1%            $27.74             $28.73                3.6%
 Coral Gables                                                  415,026     92.3%      94.7%             2.4%             $33.36             $35.12                5.3%
 Coral Way                                                     778,405     93.4%      94.6%             1.2%             $28.35             $28.06                -1.0%
 Downtown Miami                                                276,988     58.6%      58.6%             0.0%             $15.00             $15.00                0.0%
 Kendall                                                      9,045,378    92.8%      94.7%             1.9%             $25.90             $25.86                -0.2%
 Medley / Hialeah                                             5,736,685    95.8%      95.4%             -0.4%            $19.91             $20.55                3.2%
 Miami                                                        2,195,718    94.5%      94.9%              0.4%            $13.70             $13.92                1.6%
 Miami Airport                                                5,709,759    93.1%      93.5%              0.4%            $19.07             $18.91                -0.8%
 Miami Beach                                                  1,029,878    95.5%      96.0%              0.6%            $45.64             $45.64                0.0%
 Miami Lakes                                                  2,523,586    93.8%      93.9%              0.1%            $20.53             $19.76                -3.8%
 Miami-Dade Central County                                    1,244,688    93.0%      93.0%              0.0%            $15.51             $15.71                 1.3%
 Northeast Dade                                               5,459,396    94.5%      95.0%              0.5%            $20.34             $20.13                -1.0%
 Outlying Miami-Dade County                                    240,907     88.2%      87.6%             -0.6%            $22.68             $23.40                 3.2%
 South Dade                                                   6,136,372    93.0%      93.9%              0.9%            $19.04             $19.04                 0.0%
 West Miami                                                   4,152,642    97.2%      97.0%             -0.2%            $26.13             $24.95                -4.5%
 Miami-Dade Market Total                                     48,168,636   94.1%      94.7%              0.7%            $21.84             $21.55                 -1.3%
 Power Center & Shopping Center Market Statistics From CoStar Property


                                                                                                                                                                                43
                                  Written rePort authors

             Miami                                  broward                            palm beach
        Ashley Thornburg                           Alan Karrh                          Bryan Cohen
         Crossman & Company                             Stiles                       Cohen Commercial
     athornburg@crossmanco.com                 alan.karrh@stiles.com         bryancohen@cohencommercial.com


         naples / Collier                 Fort Myers / Cape Coral                   Martin / St. Lucie
           Rod Castan                   Carl Barraco & Doug Meschko                 Janine Landolina
          Courtelis Company                   Land Solutions, Inc.            Treasure Coast Commercial RE, Inc.
        rcastan@courtelis.com             cbarraco@landsolutions.net                 ileaseit@gmail.com


      Sarasota / bradenton                 tampa / St. petersburg                    Lakeland / polk
Paul Rutledge & Barbara Carnes                Tracy Harrison                         Craig Katterfield
                Casto                         Crossman & Company                    Crossman & Company
         prutledge@castolp.com             tharrison@crossmanco.com             ckatterfield@crossmanco.com



        pasco / Hernando                            Orlando                  Daytona beach / volusia
           Lill Hanson                           Katherine Rush            Whitaker Leonhardt & Kim Ellis
 American Intl Commercial Realty                Crossman & Company                 Crossman & Company
  lhanson@amicor-realty.com                    krush@crossmanco.com            wleonhardt@crossmanco.com



           the villages                        Ocala / Gainesville                    Jacksonville
           Geno Jarquin                            Beau Beery                       Geneva Henderson
              The Villages                     AMJ, Inc. of Gainesville            Lat Purser & Associates
     Geno.Jarquin@thevillages.com               beau@amjinc.com               geneva.henderson@latpurser.com


                                 tallahassee                        the panhandle
                                   J.R. Long              Kevin Wattenbarger & Franciz Rentz
                     Structure Commercial Real Estate            CCIM / Southland Commerical
                            jr@structureiq.net                       KevinW@CCIM.net




44
                    additional ContriButors

 American Intl Commercial Realty                     Kimco Realty
    American Momentum Bank                        Kite Realty Group
       AMJ Inc. of Gainesville                LandQwest Commercial
   Asset Advisors and Managers                   Land Solutions, Inc.
             Aztec Group                       Lat Purser & Associates
 Bealls Outlet / Bealls Dept Stores         Michael Collard Properties
    Beacon Hill Property Group                       NAI Realvest
                 Casto                                  NAIOP
        City of Daytona Beach                  Newmark Knight Frank
          City of Fort Myers           North American Development Group
          Cohen Commercial                 Ocean Walk Shoppes & Movies
       Colliers International                        Office Depot
         Cursor Realty Corp              Pelloni Development Corporation
   Cushman & Wakefield (Tampa)                  Publix Super Markets
         Courtelis Company                         RAM Real Estate
        Crossman & Company                       Ramco-Gershenson
         Darden Restaurants              Real Estate Research Consultants
   Developers Diversified Realty                   Regency Centers
           DLC Management                     S.A. Casey Construction
Douglas Property and Development                The Sembler Company
 East Coast Retail Investment Team               Sikon Construction
       Emerson International           Sperry Van Ness / Skye Commercial RE
 Equinox Development Properties               SRS Real Estate Partners
              Equity One                                Stiles
       Florida Retail Partners           Structure Commercial Real Estate
      Florida State University                 Terranova Corporation
         Forness Properties                   Tijuana Flats Burrito Co.
     Global Fund Investments            Treasure Coast Commercial RE, Inc.
          GrayRobinson, P.A.                      Tropical Smoothie
      Grubb & Ellis Landauer               University of Central Florida
        Guggenheim Partners                     University of Florida
       Hawkins Construction                          The Villages
HFF (Holliday Fenoglio Fowler, L.P.)           W. H. Owen Consulting
                  ICSC                       Woolbright Development




                                                                              45
                                              www.crossmanco.com




                                                    www.hfflp.com




                For questions, comments or to request additional copies of the report please
                 contact Melissa Grether at mgrether@crossmanco.com or 407-581-6223.



The information in this report, including all charts, graphs, photos and data is believed to be accurate and complete and is not
               warranted by HFF, L.P., Crossman & Company, any of the contributors, or any of their affiliates.

								
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