The CoStar Retail Report Y E A R - E N D 2 0 0 9
YEAR-END 2009 SALT LAKE CITY Table of Contents Table of Contents.................................................................... A Methodology........................................................................ B Terms & Definitions.................................................................. C Market Highlights & Overview......................................................... 1 CoStar Markets & Submarkets......................................................... 4 Inventory & Development Analysis...................................................... 5 Inventory & Development Analysis Select Top Deliveries Select Top Under Construction Properties Figures at a Glance................................................................... 9 Figures at a Glance by Building Type & Market Figures at a Glance by Building Type & Submarket Historical Figures at a Glance Leasing Activity Analysis Select Top Lease Transactions Analysis of Individual CoStar Markets.................................................. 18 Cache County Market CBD Market Central Valley Market Central Valley East Market Davis/Weber Counties Market East Valley Market Juab County Market Morgan County Market South Valley Market Summit County Market Tooele County Market Utah County Market West Valley Market 2010 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT A
SALT LAKE CITY YEAR-END 2009 Methodology The CoStar Retail Report calculates Retail statistics using CoStar Group's base of existing, under construction and under renovation Retail buildings in each given metropolitan area. All Retail building types are included, including Community Center, Freestanding Retail, Neighborhood Center, Power Center, Regional Mall, Specialty Center and Unanchored Strip Center, in both single-tenant and multitenant buildings, including owner-occupied buildings. CoStar Group's national database includes approximately 69.1 billion square feet of coverage in 2.8 million properties. All rental rates reported in the CoStar Retail Report are calculated using Triple Net (NNN) rental rates. For information on subscribing to CoStar s other products and services, please contact us at 1-877-7COSTAR, or visit our web site at www.costar.com Copyright 2010 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of the information contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness or completeness of the information. The publication is provided as is and CoStar expressly disclaims any guarantees, representations or warranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. CoStar Group, Inc. 2 Bethesda Metro Center Bethesda, MD USA 20814 (800) 204-5960 www.costar.com NASDAQ: CSGP B THE COSTAR RETAIL REPORT 2010 COSTAR GROUP, INC.
YEAR-END 2009 SALT LAKE CITY Terms & Definitions Anchor Tenant: A large national or regional retailer that serves as a primary draw for a shopping center; a store strategically located in a retail property in order to enhance, bring attention to, or increase traffic at the property. Sometimes called a destination tenant, usually these tenants lease at least 25,000 SF. Availability Rate: The ratio of available space to total rentable space, calculated by dividing the total available square feet by the total rentable square feet. Available Space: The total amount of space that is currently being marketed as available for lease in a given time period. It includes any space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date. Buyer: The individual, group, company, or entity that has purchased a commercial real estate asset. Cap Rate: Short for capitalization rate. The Cap Rate is a calculation that reflects the relationship between one year s net operating income and the current market value of a particular property. The Cap Rate is calculated by dividing the annual net operating income by the sales price (or asking sales price). Community Center: A shopping center development that has a total square footage between 100,000 350,000 SF. Generally will have 2-3 large anchored tenants, but not department store anchors. Community Center typically offers a wider range of apparel and other soft goods than the Neighborhood Center. Among the more common anchors are supermarkets and super drugstores. Community Center tenants sometime contain retailers selling such items as apparel, home improvement/furnishings, toys, electronics or sporting goods. The center is usually configured as a strip, in a straight line, or an L or U shape. Construction Starts: Buildings that began construction during a specific period of time. (See also: Deliveries) Deliveries: Buildings that complete construction during a specified period of time. In order for space to be considered delivered, a certificate of occupancy must have been issued for the property. Delivery Date: The date a building completes construction and receives a certificate of occupancy. Developer: The company, entity or individual that transforms raw land to improved property by use of labor, capital and entrepreneurial efforts. Direct Space: Space that is being offered for lease directly from the landlord or owner of a building, as opposed to space being offered in a building by another tenant (or broker of a tenant) trying to sublet a space that has already been leased. : The square footage of buildings that have received a certificate of occupancy and are able to be occupied by tenants. It does not include space in buildings that are either planned, under construction or under renovation. Freestanding Retail: Single tenant building with a retail tenant. Examples include video stores, fast food restaurant, etc. Full Service Rental Rate: Rental rates that include all operating expenses such as utilities, electricity, janitorial services, taxes and insurance. General Retail: Typically are single tenant freestanding generalpurpose commercial buildings with parking. Many single retail buildings fall into this use code, especially when they don t meet any of the more detailed use code descriptions. Growth in Inventory: The change in size of the existing square footage in a given area over a given period of time, generally due to the construction of new buildings. Landlord Rep: (Landlord Representative) In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the owner/landlord is referred to as the Landlord Rep. Leased Space: All the space that has a financial lease obligation. It includes all leased space, regardless of whether the space is currently occupied by a tenant. Leased space also includes space being offered for sublease. Leasing Activity: The volume of square footage that is committed to and signed under a lease obligation for a specific building or market in a given period of time. It includes direct leases, subleases and renewals of existing leases. It also includes any pre-leasing activity in planned, under construction, or under renovation buildings. Lifestyle Center: An upscale, specialty retail, main street concept shopping center. An open center, usually without anchors, about 300,000 SF GLA or larger, located near affluent neighborhoods, includes upscale retail, trendy restaurants and entertainment retail. Nicely landscaped with convenient parking located close to the stores. Mall: The combined retail center types of Lifestyle Center, Regional Mall and Super Regional Mall. Market: Geographic boundaries that serve to delineate core areas that are competitive with each other and constitute a generally accepted primary competitive set of areas. Markets are buildingtype specific, and are non-overlapping contiguous geographic designations having a cumulative sum that matches the boundaries of the entire Region (See also: Region). Markets can be further subdivided into Submarkets. (See also: Submarkets) Multi-Tenant: Buildings that house more than one tenant at a given time. Usually, multi-tenant buildings were designed and built to accommodate many different floor plans and designs for different tenant needs. (See also: Tenancy). Neighborhood Center: Provides for the sales of convenience goods (food, drugs, etc.) and personal services (laundry, dry cleaning, etc.) for day-to-day living needs of the immediate neighborhood with a supermarket being the principal tenant. In theory, the typical GLA is 50,000 square feet. In practice, the GLA may range from 30,000 to 100,000 square feet. Net Absorption: The net change in occupied space over a given period of time. Unless otherwise noted Net Absorption includes direct and sublease space. New Space: Sometimes called first generation space, refers to space that has never been occupied and/or leased by a tenant. Occupied Space: Space that is physically occupied by a tenant. It does not include leased space that is not currently occupied by a tenant. Outlet Center: Usually located in a rural or occasionally in a tourist location, an Outlet Center consists of manufacturer s outlet stores selling their own brands at a discount. 50,000 500,000 SF. An Outlet Center does not have to be anchored. A strip configuration is most common, although some are enclosed malls and others can be arranged in a village cluster. Owner: The company, entity, or individual that holds title on a given building or property. Planned/Proposed: The status of a building that has been announced for future development but not yet started construction. Power Center: The center typically consists of several freestanding (unconnected) anchors and only a minimum amount of small specialty tenants. 250,000 600,000 SF. A Power Center is dominated by several large anchors, including discount department stores, off-price stores, warehouse clubs, or "category killers," i.e., 2010 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT C
SALT LAKE CITY YEAR-END 2009 stores that offer tremendous selection in a particular merchandise category at low prices. Preleased Space: The amount of space in a building that has been leased prior to its construction completion date, or certificate of occupancy date. Price/SF: Calculated by dividing the price of a building (either sales price or asking sales price) by the Rentable Building Area (RBA). Rental Rate: The asking rate per square foot for a particular building or unit of space by a broker or property owner. rental rates may differ from the actual rates paid by tenants following the negotiation of all terms and conditions in a specific lease. RBA: Abbreviation for Rentable Building Area. (See also: Rentable Building Area) Region: Core areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Regions are further divided into market areas, called Markets. (See also: Markets) Regional Mall: Provides shopping goods, general merchandise, apparel, and furniture, and home furnishings in full depth and variety. It is built around the full-line department store with a minimum GLA of 100,000 square feet, as the major drawing power. For even greater comparative shopping, two, three, or more department stores may be included. In theory a regional center has a GLA of 400,000 square feet, and may range from 300,000 to more than 1,000,000 square feet. Regional centers in excess of 750,000 square feet GLA with three or more department stores are considered Super Regional. (See also: Super Regional Mall). Relet Space: Sometimes called second generation or direct space, refers to existing space that has previously been occupied by another tenant. Rentable Building Area: (RBA) The total square footage of a building that can be occupied by, or assigned to a tenant for the purpose of determining a tenant s rental obligation. Generally RBA includes a percentage of common areas including all hallways, main lobbies, bathrooms, and telephone closets. Rental Rates: The annual costs of occupancy for a particular space quoted on a per square foot basis. Sales Price: The total dollar amount paid for a particular property at a particular point in time. Sales Volume: The sum of sales prices for a given group of buildings in a given time period. Seller: The individual, group, company, or entity that sells a particular commercial real estate asset. SF: Abbreviation for Square Feet. Shopping Center: The combined retail center types of Community Center, Neighborhood Center and Strip Center. Single-Tenant: Buildings that are occupied, or intended to be occupied by a single tenant. (See also: Build-to-suit and Tenancy) Specialty Center: The combined retail center types of Airport Retail, Outlet Center and Theme/Festival Center. Sports & Entertainment: A facility suited for recreational activities, including: Amusement Facility, Aquatic Facility/Swimming Pool, Bowling Alley, Casino/Gaming Facility, Equestrian Center/ Stable, Fitness, Court and Spa Facility, Golf Related, Racetrack, Skating Rink, Ski Resort, Sports Arena/Stadium, and Theatre/ Performing Art Facility. Strip Center: A strip center is an attached row of stores or service outlets managed as a coherent retail entity, with on-site parking usually located in front of the stores. Open canopies may connect the storefronts, but a strip center does not have enclosed walkways linking the stores. A strip center may be configured in a straight line, or have an "L" or "U" shape. Sublease Space: Space that has been leased by a tenant and is being offered for lease back to the market by the tenant with the lease obligation. Sublease space is sometimes referred to as sublet space. Submarkets: Specific geographic boundaries that serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted primary competitive set, or peer group. Submarkets are building type specific (office, industrial, retail, etc.), with distinct boundaries dependent on different factors relevant to each building type. Submarkets are non-overlapping, contiguous geographic designations having a cumulative sum that matches the boundaries of the Market they are located within (See also: Market). Super Regional Mall: Similar to a regional mall, but because of its larger size, a super regional mall has more anchors, a deeper selection of merchandise, and draws from a larger population base. As with regional malls, the typical configuration is as an enclosed mall, frequently with multiple levels (See also: Regional Mall). Tenancy: A term used to indicate whether or not a building is occupied by multiple tenants (See also: Multi-tenant) or a single tenant. (See also: Single-tenant) Tenant Rep: Tenant Rep stands for Tenant Representative. In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the tenant is referred to as a Tenant Rep. Theme/Festival Center: These centers typically employ a unifying theme that is carried out by the individual shops in their architectural design and, to an extent, in their merchandise. Sometimes the biggest appeal of these centers is to tourists; they can be anchored by restaurants and entertainment facilities. These centers, generally located in urban areas, tend to be adapted from older, sometimes historic, buildings, and can be part of mixed-use projects. 80,000 250,000 SF. Under Construction: The status of a building that is in the process of being developed, assembled, built or constructed. A building is considered to be under construction after it has begun construction and until it receives a certificate of occupancy. Rate: A measurement expressed as a percentage of the total amount of physically vacant space divided by the total amount of existing inventory. Under construction space generally is not included in vacancy calculations. Vacant Space: Space that is not currently occupied by a tenant, regardless of any lease obligation that may be on the space. Vacant space could be space that is either available or not available. For example, sublease space that is currently being paid for by a tenant but not occupied by that tenant, would be considered vacant space. Likewise, space that has been leased but not yet occupied because of finish work being done, would also be considered vacant space. Weighted Average Rental Rate: Rental rates that are calculated by factoring in, or weighting, the square footage associated with each particular rental rate. This has the effect of causing rental rates on larger spaces to affect the average more than that of smaller spaces. The weighted average rental rate is calculated by taking the ratio of the square footage associated with the rental rate on each individual available space to the square footage associated with rental rates on all available spaces, multiplying the rental rate by that ratio, and then adding together all the resulting numbers. Unless specifically specified otherwise, rental rate averages include both Direct and Sublet available spaces. Year Built: The year in which a building completed construction and was issued a certificate of occupancy. YTD: Abbreviation for Year-to-Date. Describes statistics that are cumulative from the beginning of a calendar year through whatever time period is being studied. D THE COSTAR RETAIL REPORT 2010 COSTAR GROUP, INC.
OVERVIEW YEAR-END 2009 SALT LAKE CITY Salt Lake City s Decreases to 6.2% Net Absorption Positive 345,067 SF in the Quarter The Salt Lake City retail market did not experience much change in market conditions in the fourth quarter 2009. The vacancy rate went from 6.3% in the previous quarter to 6.2% in the current quarter. Net absorption was positive 345,067 square feet, and vacant sublease space decreased by (48,338) square feet. rental rates decreased from third quarter 2009 levels, ending at $14.70 per square foot per year. A total of nine retail buildings with 174,099 square feet of retail space were delivered to the market in the quarter, with 330,459 square feet still under construction at the end of the quarter. Net Absorption Retail net absorption was strong in Salt Lake City fourth quarter 2009, with positive 345,067 square feet absorbed in the quarter. In third quarter 2009, net absorption was negative (286,464) square feet, while in second quarter 2009, absorption came in at negative (355,349) square feet. In first quarter 2009, positive 305,919 square feet was absorbed in the market. Tenants moving out of large blocks of space in 2009 include: Nordstrom moving out of 205,252 square feet at Fashion Place Mall; Kmart moving out of 90,256 square feet and Albertson s moving out of 59,754 square feet at Draper Plaza. Tenants moving into large blocks of space in 2009 include: Nordstrom moving into 138,000 square feet at Fashion Place Mall - Phase II; Wal-Mart Supercenter moving into 134,000 square feet at Wal-Mart Supercenter; and Kohl s moving into 87,000 square feet at Riverton Depot. Salt Lake City s retail vacancy rate decreased in the fourth quarter 2009, ending the quarter at 6.2%. Over the past four quarters, the market has seen an overall increase in the vacancy rate, with the rate going from 5.6% in the first quarter 2009, to 6.0% at the end of the second quarter 2009, 6.3% at the end of the third quarter 2009, to 6.2% in the current quarter. The amount of vacant sublease space in the Salt Lake City market has trended up over the past four quarters. At the end of the first quarter 2009, there were 362,028 square feet of vacant sublease space. Currently, there are 368,558 square feet vacant in the market. Largest Lease Signings The largest lease signings occurring in 2009 included: the 87,000-square-foot-lease signed by Kohl s at Riverton Depot ; the 28,800-square-foot-deal signed by Autosource Motors, L.C. at 2023 S 625 W; and the 25,000-square-foot-lease signed by Tenochtitlan Produce & Meat Market at Midvale Plaza. Rental Rates Average quoted asking rental rates in the Salt Lake City retail market are down over previous quarter levels, and down from their levels four quarters ago. rents ended the fourth quarter 2009 at $14.70 per square foot per year. That compares to $14.71 per square foot in the third quarter 2009, and $15.10 per square foot at the end of the first quarter 2009. This represents a 0.1% decrease in rental rates in the current quarter, and a 2.72% decrease from four quarters ago. Inventory & Construction During the fourth quarter 2009, nine buildings totaling 174,099 square feet were completed in the Salt Lake City retail Rates by Building Type 2005-2009 Power Center Specialty Center General Retail Shopping Center Mall Total Market 12% 10% 8% 6% 4% 2% 0% 2005 4q 2006 1q 2006 2q 2006 3q 2006 4q 2007 1q 2007 2q 2007 3q 2007 4q Absorption & Deliveries U.S. Comparison 2010 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 1 Past 10 Quarters Past 10 Quarters
SALT LAKE CITY YEAR-END 2009 OVERVIEW market. Over the past four quarters, a total of 1,267,507 square feet of retail space has been built in Salt Lake City. In addition to the current quarter, 13 buildings with 157,244 square feet were completed in third quarter 2009, 12 buildings totaling 187,235 square feet completed in second quarter 2009, and 748,929 square feet in 21 buildings completed in first quarter 2009. There were 330,459 square feet of retail space under construction at the end of the fourth quarter 2009. Some of the notable 2009 deliveries include: Fashion Place Mall - Phase II, a 144,000-square-foot facility that delivered in first quarter 2009 and is now 100% occupied, and Wal-Mart Supercenter - Saratoga West Gate, a 134,000-square-foot building that delivered in first quarter 2009 and is now 100% occupied. Total retail inventory in the Salt Lake City market area amounted to 121,809,473 square feet in 9,660 buildings and 925 centers as of the end of the fourth quarter 2009. 05-2009 Shopping Center The Shopping Center market in Salt Lake City currently General Retail Shopping Center Mall Total Market consists of 885 projects with 41,523,691 square feet of retail space in 1,807 buildings. In this report the Shopping Center market is comprised of all Community Center, Neighborhood Center, and Strip Centers. After absorbing (23,428) square feet and delivering 4,300 square feet in the current quarter, the Shopping Center sector saw the vacancy rate go from 9.5% at the end of the third quarter 2009 to 9.5% this quarter. Over the past four quarters, the Shopping Center vacancy rate has gone from 8.7% at the end of the first quarter 2009, to 9.2% at the end of the second quarter 2009, to 9.5% at the end of the third quarter 2009, and finally to 9.5% at the end of the current quarter. Rental rates ended the fourth quarter 2009 at $14.72 per 3q 2007 4q square foot, up from the $14.69 they were at the end of third quarter 2009. Rental rates have trended down over the past year, U.S. Comparison Past 10 Quarters Price in Dollars per Unit $17 $16 $16 $15 $15 $14 2007 3q 2007 4q Average Rental Rate 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q Rate 2009 2q 2009 2009 3q 4q 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Rate Percentage going from $15.54 per square foot a year ago to their current levels. Net absorption in the Shopping Center sector has totaled 209,532 square feet over the past four quarters. In addition to the negative (23,428) square feet absorbed this quarter, negative (74,229) square feet was absorbed in the third quarter 2009, negative (194,035) square feet was absorbed in the second quarter 2009, and positive 501,224 square feet was absorbed in the first quarter 2009. Power Centers The Power Center average vacancy rate was 6.9% in the fourth quarter 2009. With positive 56,191 square feet of net absorption and 97,796 square feet in new deliveries, the vacancy rate went from 6.4% at the end of last quarter to 6.9% at the end of the fourth quarter. In the third quarter 2009, Power Centers absorbed negative (14,362) square feet, delivered no new space, and the vacancy rate went from 6.2% to 6.4% over the course of the quarter. Rental started the quarter at $19.66 per square foot and ended the quarter at $19.68 per square foot. A year ago, in fourth quarter 2008, the vacancy rate was 5.1%. Over the past four quarters, Power Centers have absorbed a cumulative (27,852) square feet of space and delivered cumulative 97,796 square feet of space. Vacant sublease space has gone from 9,473 square feet to 33,846 square feet over that time period, and rental rates have gone from $25.04 to $18.46. At the end of the fourth quarter 2009, there was no space under construction in the Salt Lake City market. The total stock of Power Center space in Salt Lake City currently sits at 6,652,987 square feet in 19 centers comprised of 175 buildings. General Retail Properties The General Retail sector of the market, which includes all freestanding retail buildings, except those contained within a center, reported a vacancy rate of 3.8% at the end of fourth quarter 2009. There was a total of 2,438,059 square feet vacant at that time. The General Retail sector in Salt Lake City currently has average rental rates of $13.14 per square foot per year. There are 106,459 square feet of space under construction in this sector, with 50,503 square feet having been completed in the fourth quarter. In all, there are a total of 7,551 buildings with 63,669,220 square feet of General Retail space in Salt Lake City. Specialty Centers There are currently six Specialty Centers in the Salt Lake City market, making up 621,493 square feet of retail space. In this report the Specialty Center market is comprised of Outlet Center, Airport Retail and Theme/Festival Centers. Specialty Centers in the Salt Lake City market have experienced no net absorption in 2009. The vacancy rate currently stands at 1.6%, and rental rates average $14.00 per square foot. Source: CoStar Property 2 THE COSTAR RETAIL REPORT 2010 COSTAR GROUP, INC.
0% OVERVIEW 2% YEAR-END 2009 SALT LAKE CITY 2005 4q 2006 1q 2006 2q 2006 3q 2006 4q 2007 1q 2007 2q 2007 3q 20 Malls Malls recorded net absorption of positive 27,248 square feet in the fourth quarter 2009. This net absorption number, combined with the 21,500 square feet that was built in the quarter, caused the vacancy rate to go from 7.2% a quarter ago to 7.1% at the end of the fourth quarter 2009. Rental rates went from $19.61 per square foot to $21.70 per square foot during that time. In this report the Mall market is comprised of 15 Lifestyle Center, Regional Mall and Super Regional Malls. Reports compiled by: Ethan Reed CoStar Research Manager. Absorption & Deliveries Past 10 Quarters 2.0 1.5 1.0 0.5 0.0 Net Absorption Deliveries 1.48 0.74 0.66 0.68 0.75 0.47 0.43 0.37 0.32 0.31 0.35 0.25 0.30 0.20 0.15 0.19 0.16 0.17 (0.5) 2007 3q 2007 4q 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q (0.36) 2009 2q (0.29) 2009 3q 2009 4q Source: CoStar Property 2010 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 3
SALT LAKE CITY YEAR-END 2009 MARKETS CoStar Markets & Submarkets In analyzing metropolitan areas in the U.S., CoStar has developed geographic designations to help group properties together, called Regions, Markets and Submarkets. Regions are the equivalent of metropolitan areas, or areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Regions are then divided into Markets, which are core areas within a metropolitan area that are known to be competitive with each other in terms of attracting and keeping tenants. Markets are then further subdivided into smaller units called Submarkets, which serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted competitive set, or peer group. Markets CBD East Valley Summit County Cache County Davis/Weber Counties Juab County Morgan County Central Valley East Central Valley South Valley West Valley Tooele County Utah County Submarkets CBD CBD/Periphery Northeast Avenues Foothill Corridor Interchange Research Park Sugarhouse Summit County Cache County Davis/Weber Counties Juab County Morgan County Central Valley East Cottonwood Union Park District Central Valley West Central Valley Draper Sandy South Towne Southeast Valley Southwest Valley Airport/International Ctr West Valley/Lake Park Tooele County Utah County 4 THE COSTAR RETAIL REPORT 2010 COSTAR GROUP, INC.
INVENTORY & DEVELOPMENT YEAR-END 2009 SALT LAKE CITY Historical Deliveries 1982-2009 4.5 Deliveries Average Delivered SF 4.0 3.8 Millions of SF 3.5 3.0 2.5 2.0 1.5 1.0 1.0 0.8 1.5 1.9 1.6 2.4 2.2 1.2 3.2 1.1 0.9 0.8 1.9 2.9 2.0 1.4 2.7 1.1 2.3 3.0 1.7 3.2 1.7 2.3 3.2 1.6 1.3 0.5 0.0 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 * Future deliveries based on current under construction buildings. Construction Activity Markets Ranked by Under Construction Square Footage Under Construction Inventory Average Bldg Size Market # Bldgs Total GLA Preleased SF Preleased % All Existing U/C CBD 1 124,000 124,000 100.0% 10,065 124,000 Utah County 3 109,229 56,994 52.2% 12,322 36,410 South Valley 1 91,678 91,678 100.0% 15,783 91,678 West Valley 1 5,552 5,552 100.0% 11,662 5,552 Davis/Weber Counties 0 0 0 0.0% 11,913 0 Cache County 0 0 0 0.0% 15,726 0 Central Valley East 0 0 0 0.0% 12,149 0 Central Valley 0 0 0 0.0% 18,520 0 East Valley 0 0 0 0.0% 9,983 0 Juab County 0 0 0 0.0% 5,870 0 All Other 0 0 0 0.0% 15,986 0 Totals 6 330,459 278,224 84.2% 12,610 55,076 Recent Deliveries Leased & Un-Leased SF in Deliveries Since 2005 Future Deliveries Preleased & Un-Leased SF in Properties Scheduled to Deliver 3.5 Leased Un-Leased 250 Preleased Un-Leased 3.0 200 2.5 T Millions of SF 2.0 1.5 1.0 Thousands of SF 150 100 0.5 50 0.0 2005 2006 2007 2008 2009 0 2010 1q 2010 2q 2011 1q 2010 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 5
SALT LAKE CITY YEAR-END 2009 INVENTORY & DEVELOPMENT Historical Construction Starts & Deliveries Square Footage Per Quarter Starting and Completing Construction 1.6 1.4 Construction Starts 1.45 Deliveries 1.2 1.07 Millions of SF 1.0 0.8 0.6 0.4 0.2 0.68 0.91 0.87 0.17 0.67 0.25 0.56 0.51 0.30 0.60 0.47 0.39 0.16 0.66 0.77 0.32 0.62 0.25 0.30 0.15 0.13 0.68 0.26 0.75 0.07 0.19 0.24 0.16 0.17 0.10 0.0 2006 1q 2006 2q 2006 3q 2006 4q 2007 1q 2007 2q 2007 3q 2007 4q Recent Deliveries by Project Size of Year-to-Date Development Building Size # Bldgs GLA SF Leased % Leased Avg Rate Single-Tenant Multi-Tenant < 50,000 SF 49 608,160 390,681 64.2% $21.87 113,656 494,504 50,000 SF - 99,999 SF 3 254,174 185,269 72.9% $15.80 87,000 167,174 100,000 SF - 249,999 SF 3 405,173 405,173 100.0% $ 271,173 134,000 250,000 SF - 499,999 SF 0 0 0 0.0% $ 0 0 >= 500,000 SF 0 0 0 0.0% $ 0 0 Recent Development by Tenancy Based on GLA Developed for Single & Multi Tenant Use 2009 Deliveries Currently Under Construction Comparison Based on Total GLA General Retail Shopping Center 37% 34% Mall 63% 66% Power Center Specialty Center Multi Single Multi Single Millions of Square 0Feet 10 20 30 40 50 60 70 6 THE COSTAR RETAIL REPORT 2010 COSTAR GROUP, INC.
INVENTORY & DEVELOPMENT YEAR-END 2009 SALT LAKE CITY 2010 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 7
SALT LAKE CITY YEAR-END 2009 INVENTORY & DEVELOPMENT 8 THE COSTAR RETAIL REPORT 2010 COSTAR GROUP, INC.
FIGURES AT A GLANCE YEAR-END 2009 SALT LAKE CITY General Retail Market Statistics Year-End 2009 YTD Net YTD Under Market # Blds Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Cache County 184 1,929,130 27,546 27,546 1.4% 36,054 0 0 $25.60 CBD 825 6,377,730 198,148 198,148 3.1% 11,199 0 0 $14.02 Central Valley 264 2,555,708 209,153 214,483 8.4% 14,621 4,958 0 $14.30 Central Valley East 994 7,891,201 272,321 274,634 3.5% (26,418) 27,837 0 $11.72 Davis/Weber Counties 1,749 13,996,993 528,195 528,195 3.8% 240,296 89,702 0 $12.85 East Valley 676 5,579,410 162,707 206,607 3.7% (67,406) 8,877 0 $13.00 Juab County 22 129,130 6,726 6,726 5.2% (6,726) 0 0 $8.60 Morgan County 13 48,901 5,100 5,100 10.4% (5,100) 0 0 $4.68 South Valley 703 6,733,680 301,040 314,779 4.7% (28,918) 73,248 91,678 $13.53 Summit County 114 1,537,570 40,679 47,459 3.1% 12,157 0 0 $23.66 Tooele County 57 859,744 12,752 39,657 4.6% (36,928) 2,729 0 $10.85 Utah County 1,505 12,265,599 518,065 518,065 4.2% (73,273) 56,992 9,229 $10.72 West Valley 445 3,764,424 44,160 56,660 1.5% 32,006 0 5,552 $11.03 Totals 7,551 63,669,220 2,326,592 2,438,059 3.8% 101,564 264,343 106,459 $13.14 Mall Market Statistics Year-End 2009 YTD Net YTD Under Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Cache County 0 0 0 0 0.0% 0 0 0 $ CBD 2 1,456,125 9,853 9,853 0.7% (8,705) 0 124,000 $18.00 Central Valley 1 771,800 110,180 110,180 14.3% (74,880) 7,500 0 $9.00 Central Valley East 2 1,213,383 140,845 140,845 11.6% 15,010 144,000 0 $18.51 Davis/Weber Counties 4 2,147,850 113,720 113,720 5.3% (76,051) 0 0 $12.28 East Valley 0 173,147 173,147 173,147 100.0% (173,147) 0 0 $33.00 Juab County 0 0 0 0 0.0% 0 0 0 $ Morgan County 0 0 0 0 0.0% 0 0 0 $ South Valley 1 1,271,969 23,477 23,477 1.8% (6,363) 0 0 $ Summit County 1 161,358 73,925 73,925 45.8% 51,138 123,763 0 $26.05 Tooele County 0 0 0 0 0.0% 0 0 0 $ Utah County 4 2,146,450 17,828 17,828 0.8% (1,073) 0 0 $24.95 West Valley 0 0 0 0 0.0% 0 0 0 $ Totals 15 9,342,082 662,975 662,975 7.1% (274,071) 275,263 124,000 $21.70 Power Center Market Statistics Year-End 2009 YTD Net YTD Under Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Cache County 0 0 0 0 0.0% 0 0 0 $ CBD 1 183,785 3,600 3,600 2.0% 23,253 0 0 $26.33 Central Valley 1 1,621,401 16,298 50,144 3.1% (28,667) 3,154 0 $16.90 Central Valley East 7 1,271,212 74,462 74,462 5.9% 111,562 94,642 0 $13.12 Davis/Weber Counties 2 1,233,248 214,192 214,192 17.4% (50,752) 0 0 $ East Valley 0 0 0 0 0.0% 0 0 0 $ Juab County 0 0 0 0 0.0% 0 0 0 $ Morgan County 0 0 0 0 0.0% 0 0 0 $ South Valley 2 846,569 50,400 50,400 6.0% (39,000) 0 0 $29.00 Summit County 0 0 0 0 0.0% 0 0 0 $ Tooele County 0 0 0 0 0.0% 0 0 0 $ Utah County 6 1,496,772 67,225 67,225 4.5% (44,248) 0 0 $21.64 West Valley 0 0 0 0 0.0% 0 0 0 $ Totals 19 6,652,987 426,177 460,023 6.9% (27,852) 97,796 0 $18.46 2010 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 9
SALT LAKE CITY YEAR-END 2009 FIGURES AT A GLANCE Shopping Center Market Statistics Year-End 2009 YTD Net YTD Under Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Cache County 29 1,876,642 159,437 159,437 8.5% (8,859) 0 0 $15.96 CBD 28 859,909 93,316 93,316 10.9% (12,391) 0 0 $17.68 Central Valley 53 3,401,210 326,507 377,276 11.1% (54,454) 11,840 0 $12.16 Central Valley East 108 4,980,800 412,310 426,060 8.6% 42,329 0 0 $14.26 Davis/Weber Counties 233 9,391,022 1,078,937 1,098,450 11.7% 36,155 202,628 0 $13.21 East Valley 68 2,124,603 203,399 266,024 12.5% (25,644) 0 0 $15.46 Juab County 0 0 0 0 0.0% 0 0 0 $ Morgan County 2 20,315 2,858 2,858 14.1% (2,858) 0 0 $9.00 South Valley 128 8,078,694 813,868 822,196 10.2% 163,322 77,632 0 $15.59 Summit County 10 832,892 16,796 44,796 5.4% (12,520) 0 0 $17.73 Tooele County 11 297,056 62,163 62,163 20.9% (62,163) 0 0 $11.80 Utah County 146 7,071,963 482,116 522,376 7.4% 141,189 338,005 100,000 $16.62 West Valley 69 2,588,585 85,033 85,033 3.3% 5,426 0 0 $18.05 Totals 885 41,523,691 3,736,740 3,959,985 9.5% 209,532 630,105 100,000 $14.72 Specialty Center Market Statistics Year-End 2009 YTD Net YTD Under Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Cache County 0 0 0 0 0.0% 0 0 0 $ CBD 1 20,032 0 0 0.0% 0 0 0 $ Central Valley 1 20,809 0 0 0.0% 0 0 0 $ Central Valley East 0 0 0 0 0.0% 0 0 0 $ Davis/Weber Counties 0 0 0 0 0.0% 0 0 0 $ East Valley 1 49,301 9,900 9,900 20.1% 0 0 0 $14.00 Juab County 0 0 0 0 0.0% 0 0 0 $ Morgan County 0 0 0 0 0.0% 0 0 0 $ South Valley 1 67,125 0 0 0.0% 0 0 0 $ Summit County 1 286,563 0 0 0.0% 0 0 0 $ Tooele County 0 0 0 0 0.0% 0 0 0 $ Utah County 0 0 0 0 0.0% 0 0 0 $ West Valley 1 177,663 0 0 0.0% 0 0 0 $ Totals 6 621,493 9,900 9,900 1.6% 0 0 0 $14.00 Total Retail Market Statistics Year-End 2009 YTD Net YTD Under Market # Blds Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Cache County 242 3,805,772 186,983 186,983 4.9% 27,195 0 0 $17.83 CBD 884 8,897,581 304,917 304,917 3.4% 13,356 0 124,000 $16.39 Central Valley 452 8,370,928 662,138 752,083 9.0% (143,380) 27,452 0 $12.72 Central Valley East 1,264 15,356,596 899,938 916,001 6.0% 142,483 266,479 0 $13.47 Davis/Weber Counties 2,247 26,769,113 1,935,044 1,954,557 7.3% 149,648 292,330 0 $13.07 East Valley 794 7,926,461 549,153 655,678 8.3% (266,197) 8,877 0 $18.96 Juab County 22 129,130 6,726 6,726 5.2% (6,726) 0 0 $8.60 Morgan County 15 69,216 7,958 7,958 11.5% (7,958) 0 0 $6.23 South Valley 1,077 16,998,037 1,188,785 1,210,852 7.1% 89,041 150,880 91,678 $15.08 Summit County 159 2,818,383 131,400 166,180 5.9% 50,775 123,763 0 $22.94 Tooele County 79 1,156,800 74,915 101,820 8.8% (99,091) 2,729 0 $11.58 Utah County 1,865 22,980,784 1,085,234 1,125,494 4.9% 22,595 394,997 109,229 $14.36 West Valley 560 6,530,672 129,193 141,693 2.2% 37,432 0 5,552 $16.44 Totals 9,660 121,809,473 7,162,384 7,530,942 6.2% 9,173 1,267,507 330,459 $14.70 10 THE COSTAR RETAIL REPORT 2010 COSTAR GROUP, INC.
FIGURES AT A GLANCE YEAR-END 2009 SALT LAKE CITY General Retail Submarket Statistics Year-End 2009 YTD Net YTD Under Market # Blds Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Airport/International Ctr 68 395,940 27,612 27,612 7.0% 6,940 0 0 $9.40 Cache County 184 1,929,130 27,546 27,546 1.4% 36,054 0 0 $25.60 CBD 89 1,523,814 61,409 61,409 4.0% 40,334 0 0 $13.77 CBD/Periphery 712 4,762,356 136,739 136,739 2.9% (31,690) 0 0 $14.10 Central Valley 63 826,961 156,475 156,475 18.9% 13,246 0 0 $12.47 Central Valley East 642 5,324,385 131,999 133,322 2.5% 25,058 10,000 0 $12.85 Central Valley West 201 1,728,747 52,678 58,008 3.4% 1,375 4,958 0 $14.68 Cottonwood 79 449,774 8,150 8,150 1.8% 7,330 0 0 $17.70 Davis/Weber Counties 1,749 13,996,993 528,195 528,195 3.8% 240,296 89,702 0 $12.85 Draper 112 1,439,860 9,725 9,725 0.7% 52,457 20,056 0 $25.06 Foothill Corridor 99 729,074 41,324 41,324 5.7% (3,208) 8,877 0 $12.33 Interchange 328 3,037,337 62,198 62,198 2.0% (20,044) 0 0 $13.84 Juab County 22 129,130 6,726 6,726 5.2% (6,726) 0 0 $8.60 Morgan County 13 48,901 5,100 5,100 10.4% (5,100) 0 0 $4.68 Northeast Avenues 24 91,560 0 0 0.0% 2,555 0 0 $ Research Park 26 386,899 0 0 0.0% 0 0 0 $ Sandy South Towne 212 2,210,146 24,748 38,487 1.7% (15,701) 0 0 $16.53 Southeast Valley 106 679,620 3,960 3,960 0.6% 2,265 0 0 $14.35 Southwest Valley 273 2,404,054 262,607 262,607 10.9% (67,939) 53,192 91,678 $11.47 Sugarhouse 223 1,426,100 59,185 103,085 7.2% (44,154) 0 0 $12.83 Summit County 114 1,537,570 40,679 47,459 3.1% 12,157 0 0 $23.66 Tooele County 57 859,744 12,752 39,657 4.6% (36,928) 2,729 0 $10.85 Union Park District 273 2,117,042 132,172 133,162 6.3% (58,806) 17,837 0 $9.60 Utah County 1,505 12,265,599 518,065 518,065 4.2% (73,273) 56,992 9,229 $10.72 West Valley/Lake Park 377 3,368,484 16,548 29,048 0.9% 25,066 0 5,552 $12.66 Totals 7,551 63,669,220 2,326,592 2,438,059 3.8% 101,564 264,343 106,459 $13.14 Mall Submarket Statistics Year-End 2009 YTD Net YTD Under Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Airport/International Ctr 0 0 0 0 0.0% 0 0 0 $ Cache County 0 0 0 0 0.0% 0 0 0 $ CBD 1 676,000 0 0 0.0% 0 0 124,000 $ CBD/Periphery 1 780,125 9,853 9,853 1.3% (8,705) 0 0 $18.00 Central Valley 0 0 0 0 0.0% 0 0 0 $ Central Valley East 1 220,954 6,600 6,600 3.0% (6,600) 0 0 $ Central Valley West 1 771,800 110,180 110,180 14.3% (74,880) 7,500 0 $9.00 Cottonwood 0 0 0 0 0.0% 0 0 0 $ Davis/Weber Counties 4 2,147,850 113,720 113,720 5.3% (76,051) 0 0 $12.28 Draper 0 0 0 0 0.0% 0 0 0 $ Foothill Corridor 0 0 0 0 0.0% 0 0 0 $ Interchange 0 0 0 0 0.0% 0 0 0 $ Juab County 0 0 0 0 0.0% 0 0 0 $ Morgan County 0 0 0 0 0.0% 0 0 0 $ Northeast Avenues 0 0 0 0 0.0% 0 0 0 $ Research Park 0 0 0 0 0.0% 0 0 0 $ Sandy South Towne 1 1,271,969 23,477 23,477 1.8% (6,363) 0 0 $ Southeast Valley 0 0 0 0 0.0% 0 0 0 $ Southwest Valley 0 0 0 0 0.0% 0 0 0 $ Sugarhouse 0 173,147 173,147 173,147 100.0% (173,147) 0 0 $33.00 Summit County 1 161,358 73,925 73,925 45.8% 51,138 123,763 0 $26.05 Tooele County 0 0 0 0 0.0% 0 0 0 $ Union Park District 1 992,429 134,245 134,245 13.5% 21,610 144,000 0 $18.51 Utah County 4 2,146,450 17,828 17,828 0.8% (1,073) 0 0 $24.95 West Valley/Lake Park 0 0 0 0 0.0% 0 0 0 $ Totals 15 9,342,082 662,975 662,975 7.1% (274,071) 275,263 124,000 $21.70 2010 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 11
SALT LAKE CITY YEAR-END 2009 FIGURES AT A GLANCE Power Center Submarket Statistics Year-End 2009 YTD Net YTD Under Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Airport/International Ctr 0 0 0 0 0.0% 0 0 0 $ Cache County 0 0 0 0 0.0% 0 0 0 $ CBD 0 0 0 0 0.0% 0 0 0 $ CBD/Periphery 1 183,785 3,600 3,600 2.0% 23,253 0 0 $26.33 Central Valley 0 0 0 0 0.0% 0 0 0 $ Central Valley East 1 217,621 2,000 2,000 0.9% (2,000) 0 0 $25.00 Central Valley West 1 1,621,401 16,298 50,144 3.1% (28,667) 3,154 0 $16.90 Cottonwood 0 119,718 6,650 6,650 5.6% 0 0 0 $2 Davis/Weber Counties 2 1,233,248 214,192 214,192 17.4% (50,752) 0 0 $ Draper 0 0 0 0 0.0% 0 0 0 $ Foothill Corridor 0 0 0 0 0.0% 0 0 0 $ Interchange 0 0 0 0 0.0% 0 0 0 $ Juab County 0 0 0 0 0.0% 0 0 0 $ Morgan County 0 0 0 0 0.0% 0 0 0 $ Northeast Avenues 0 0 0 0 0.0% 0 0 0 $ Research Park 0 0 0 0 0.0% 0 0 0 $ Sandy South Towne 0 0 0 0 0.0% 0 0 0 $ Southeast Valley 1 107,806 0 0 0.0% 0 0 0 $ Southwest Valley 1 738,763 50,400 50,400 6.8% (39,000) 0 0 $29.00 Sugarhouse 0 0 0 0 0.0% 0 0 0 $ Summit County 0 0 0 0 0.0% 0 0 0 $ Tooele County 0 0 0 0 0.0% 0 0 0 $ Union Park District 6 933,873 65,812 65,812 7.0% 113,562 94,642 0 $11.74 Utah County 6 1,496,772 67,225 67,225 4.5% (44,248) 0 0 $21.64 West Valley/Lake Park 0 0 0 0 0.0% 0 0 0 $ Totals 19 6,652,987 426,177 460,023 6.9% (27,852) 97,796 0 $18.46 Shopping Center Submarket Statistics Year-End 2009 YTD Net YTD Under Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Airport/International Ctr 8 157,955 19,267 19,267 12.2% (17,667) 0 0 $17.39 Cache County 29 1,876,642 159,437 159,437 8.5% (8,859) 0 0 $15.96 CBD 1 8,389 4,219 4,219 50.3% (4,219) 0 0 $10.50 CBD/Periphery 27 851,520 89,097 89,097 10.5% (8,172) 0 0 $18.57 Central Valley 3 230,854 7,051 7,051 3.1% 1,700 0 0 $13.50 Central Valley East 67 2,731,114 211,738 211,738 7.8% 52,030 0 0 $12.35 Central Valley West 50 3,170,356 319,456 370,225 11.7% (56,154) 11,840 0 $12.10 Cottonwood 10 1,047,275 118,525 118,525 11.3% (47,152) 0 0 $17.56 Davis/Weber Counties 233 9,391,022 1,078,937 1,098,450 11.7% 36,155 202,628 0 $13.21 Draper 21 1,316,553 171,168 171,168 13.0% (49,989) 25,000 0 $21.65 Foothill Corridor 18 472,574 32,169 94,794 20.1% (3,837) 0 0 $14.70 Interchange 29 670,816 87,135 87,135 13.0% (12,300) 0 0 $16.78 Juab County 0 0 0 0 0.0% 0 0 0 $ Morgan County 2 20,315 2,858 2,858 14.1% (2,858) 0 0 $9.00 Northeast Avenues 0 0 0 0 0.0% 0 0 0 $ Research Park 2 303,891 35,765 35,765 11.8% 1,625 0 0 $12.28 Sandy South Towne 22 1,510,784 211,033 211,033 14.0% 42,740 19,032 0 $11.08 Southeast Valley 23 2,413,857 280,501 280,501 11.6% 44,088 0 0 $12.17 Southwest Valley 62 2,837,500 151,166 159,494 5.6% 126,483 33,600 0 $17.57 Sugarhouse 19 677,322 48,330 48,330 7.1% (11,132) 0 0 $17.81 Summit County 10 832,892 16,796 44,796 5.4% (12,520) 0 0 $17.73 Tooele County 11 297,056 62,163 62,163 20.9% (62,163) 0 0 $11.80 Union Park District 31 1,202,411 82,047 95,797 8.0% 37,451 0 0 $14.78 Utah County 146 7,071,963 482,116 522,376 7.4% 141,189 338,005 100,000 $16.62 West Valley/Lake Park 61 2,430,630 65,766 65,766 2.7% 23,093 0 0 $18.18 Totals 885 41,523,691 3,736,740 3,959,985 9.5% 209,532 630,105 100,000 $14.72 12 THE COSTAR RETAIL REPORT 2010 COSTAR GROUP, INC.
FIGURES AT A GLANCE YEAR-END 2009 SALT LAKE CITY Specialty Center Submarket Statistics Year-End 2009 YTD Net YTD Under Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Airport/International Ctr 1 177,663 0 0 0.0% 0 0 0 $ Cache County 0 0 0 0 0.0% 0 0 0 $ CBD 0 0 0 0 0.0% 0 0 0 $ CBD/Periphery 1 20,032 0 0 0.0% 0 0 0 $ Central Valley 0 0 0 0 0.0% 0 0 0 $ Central Valley East 0 0 0 0 0.0% 0 0 0 $ Central Valley West 1 20,809 0 0 0.0% 0 0 0 $ Cottonwood 0 0 0 0 0.0% 0 0 0 $ Davis/Weber Counties 0 0 0 0 0.0% 0 0 0 $ Draper 0 0 0 0 0.0% 0 0 0 $ Foothill Corridor 0 0 0 0 0.0% 0 0 0 $ Interchange 1 49,301 9,900 9,900 20.1% 0 0 0 $14.00 Juab County 0 0 0 0 0.0% 0 0 0 $ Morgan County 0 0 0 0 0.0% 0 0 0 $ Northeast Avenues 0 0 0 0 0.0% 0 0 0 $ Research Park 0 0 0 0 0.0% 0 0 0 $ Sandy South Towne 0 0 0 0 0.0% 0 0 0 $ Southeast Valley 0 0 0 0 0.0% 0 0 0 $ Southwest Valley 1 67,125 0 0 0.0% 0 0 0 $ Sugarhouse 0 0 0 0 0.0% 0 0 0 $ Summit County 1 286,563 0 0 0.0% 0 0 0 $ Tooele County 0 0 0 0 0.0% 0 0 0 $ Union Park District 0 0 0 0 0.0% 0 0 0 $ Utah County 0 0 0 0 0.0% 0 0 0 $ West Valley/Lake Park 0 0 0 0 0.0% 0 0 0 $ Totals 6 621,493 9,900 9,900 1.6% 0 0 0 $14.00 Total Retail Submarket Statistics Year-End 2009 YTD Net YTD Under Market # Blds Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Airport/International Ctr 79 731,558 46,879 46,879 6.4% (10,727) 0 0 $13.54 Cache County 242 3,805,772 186,983 186,983 4.9% 27,195 0 0 $17.83 CBD 92 2,208,203 65,628 65,628 3.0% 36,115 0 124,000 $13.15 CBD/Periphery 768 6,597,818 239,289 239,289 3.6% (25,314) 0 0 $17.04 Central Valley 70 1,057,815 163,526 163,526 15.5% 14,946 0 0 $12.80 Central Valley East 768 8,494,074 352,337 353,660 4.2% 68,488 10,000 0 $12.61 Central Valley West 382 7,313,113 498,612 588,557 8.0% (158,326) 27,452 0 $12.71 Cottonwood 117 1,616,767 133,325 133,325 8.2% (39,822) 0 0 $17.67 Davis/Weber Counties 2,247 26,769,113 1,935,044 1,954,557 7.3% 149,648 292,330 0 $13.07 Draper 172 2,756,413 180,893 180,893 6.6% 2,468 45,056 0 $21.95 Foothill Corridor 126 1,201,648 73,493 136,118 11.3% (7,045) 8,877 0 $13.65 Interchange 369 3,757,454 159,233 159,233 4.2% (32,344) 0 0 $15.47 Juab County 22 129,130 6,726 6,726 5.2% (6,726) 0 0 $8.60 Morgan County 15 69,216 7,958 7,958 11.5% (7,958) 0 0 $6.23 Northeast Avenues 24 91,560 0 0 0.0% 2,555 0 0 $ Research Park 29 690,790 35,765 35,765 5.2% 1,625 0 0 $12.28 Sandy South Towne 266 4,992,899 259,258 272,997 5.5% 20,676 19,032 0 $12.72 Southeast Valley 216 3,201,283 284,461 284,461 8.9% 46,353 0 0 $12.26 Southwest Valley 423 6,047,442 464,173 472,501 7.8% 19,544 86,792 91,678 $14.59 Sugarhouse 270 2,276,569 280,662 324,562 14.3% (228,433) 0 0 $24.35 Summit County 159 2,818,383 131,400 166,180 5.9% 50,775 123,763 0 $22.94 Tooele County 79 1,156,800 74,915 101,820 8.8% (99,091) 2,729 0 $11.58 Union Park District 379 5,245,755 414,276 429,016 8.2% 113,817 256,479 0 $13.00 Utah County 1,865 22,980,784 1,085,234 1,125,494 4.9% 22,595 394,997 109,229 $14.36 West Valley/Lake Park 481 5,799,114 82,314 94,814 1.6% 48,159 0 5,552 $17.34 Totals 9,660 121,809,473 7,162,384 7,530,942 6.2% 9,173 1,267,507 330,459 $14.70 2010 COSTAR GROUP, INC. THE COSTAR RETAIL REPORT 13
SALT LAKE CITY YEAR-END 2009 FIGURES AT A GLANCE General Retail Market Statistics Year-End 2009 Net Deliveries UC Inventory Period # Blds Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates 2009 4q 7,551 63,669,220 2,326,592 2,438,059 3.8% 281,092 5 50,503 4 106,459 $13.14 2009 3q 7,547 63,626,769 2,562,063 2,676,700 4.2% 39,711 8 92,614 7 59,732 $13.33 2009 2q 7,539 63,534,155 2,557,294 2,623,797 4.1% (141,580) 7 75,839 12 134,240 $13.80 2009 1q 7,534 63,510,241 2,380,411 2,458,303 3.9% (77,659) 7 45,387 15 168,453 $14.00 2008 4q 7,530 63,474,745 2,327,579 2,345,148 3.7% (281,767) 8 104,718 14 121,226 $13.46 2008 3q 7,523 63,379,027 1,948,517 1,967,663 3.1% (44,976) 5 56,544 16 193,074 $13.43 2008 2q 7,521 63,373,400 1,888,375 1,917,060 3.0% 142,666 4 165,531 15 156,218 $13.43 2008 1q 7,520 63,316,924 1,980,579 2,003,250 3.2% 149,238 10 166,905 10 230,590 $13.48 2007 4q 7,511 63,154,859 1,961,071 1,990,423 3.2% 83,700 4 28,037 13 317,616 $13.50 2007 3q 7,507 63,126,822 2,006,963 2,046,086 3.2% 429,018 5 298,754 16 343,853 $14.02 2007 2q 7,503 62,829,668 2,131,802 2,177,950 3.5% 392,657 7 454,880 11 447,891 $13.97 2007 1q 7,496 62,374,788 2,075,730 2,115,727 3.4% 513,497 18 435,792 14 780,084 $13.68 2006 4q 7,480 61,948,514 2,163,796 2,202,950 3.6% 82,789 7 52,620 27 1,108,823 $13.66 2006 3q 7,473 61,895,894 2,201,373 2,233,119 3.6% 306,802 5 34,046 27 1,099,682 $13.42 2006 2q 7,469 61,867,080 2,499,129 2,511,107 4.1% (29,291) 3 27,133 14 543,519 $12.65 2006 1q 7,469 61,852,151 2,453,262 2,466,887 4.0% (432,033) 15 173,796 8 61,179 $11.86 Mall Market Statistics Year-End 2009 Net Deliveries UC Inventory Period # Ctrs Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates 2009 4q 15 9,342,082 662,975 662,975 7.1% 27,248 1 21,500 1 124,000 $21.70 2009 3q 15 9,320,582 668,723 668,723 7.2% (241,284) 3 28,030 2 145,500 $19.61 2009 2q 15 9,292,552 378,388 399,409 4.3% (288) 2 74,233 4 49,530 $17.76 2009 1q 15 9,218,319 324,888 324,888 3.5% (59,747) 2 151,500 5 102,263 $17.54 2008 4q 15 9,066,819 113,641 113,641 1.3% (9,646) 2 18,300 4 225,733 $24.61 2008 3q 15 9,048,519 83,195 85,695 0.9% 16,257 2 14,000 3 162,300 $23.34 2008 2q 15 9,034,519 87,952 87,952 1.0% 50,857 0 0 5 176,300 $20.42 2008 1q 15 9,034,519 138,809 138,809 1.5% 8,011 0 0 2 14,000 $26.91 2007 4q 15 9,034,519 146,820 146,820 1.6% 385,213 0 0 0 0 $26.41 2007 3q 15 9,034,519 532,033 532,033 5.9% 8,025 0 0 0 0 $21.20 2007 2q 15 9,034,519 540,058 540,058 6.0% (416,154) 0 0 0 0 $25.29 2007 1q 15 9,034,519 111,904 123,904 1.4% (28,907) 0 0 0 0 $27.11 2006 4q 15 9,034,519 82,997 94,997 1.1% 8,227 0 0 0 0 $27.64 2006 3q 15 9,034,519 91,224 103,224 1.1% 27,110 0 0 0 0 $24.86 2006 2q 15 9,034,519 121,571 130,334 1.4% (23,927) 1 8,960 0 0 $24.79 2006 1q 15 9,025,559 80,176 97,447 1.1% (41,868) 2 23,137 1 8,960 $21.56 Power Center Market Statistics Year-End 2009 Net Deliveries UC Inventory Period # Ctrs Total GLA Direct SF Total SF Vac % Absorption # Blds Total GLA # Blds Total GLA Rates 2009 4q 19 6,652,987 426,177 460,023 6.9% 56,191 2 97,796 0 0 $18.46 2009 3q 18 6,555,191 380,858 418,418 6.4% (14,362) 0 0 2 97,796 $19.68 2009 2q 18 6,555,191 363,996 404,056 6.2% (19,446) 0 0 2 97,796 $19.66 2009 1q 18 6,555,191 344,550 384,610 5.9% (50,235) 0 0 1 94,642 $19.50 2008 4q 18 6,555,191 324,902 334,375 5.1% 8,641 1 4,195 0 0 $25.04 2008 3q 18 6,550,996 327,104 338,821 5.2% (24,245) 0 0 1 4,195 $24.66 2008 2q 18 6,550,996 302,859 314,576 4.8% 45,004 0 0 1 4,195 $24.68 2008 1q 18 6,550,996 349,607 359,580 5.5% (159,774) 0 0 0 0 $26.50 2007 4q 18 6,550,996 196,806 199,806 3.1% 321,612 2 156,354 0 0 $26.50 2007 3q 18 6,394,642 337,064 365,064 5.7% 12,568 1 20,400 2 156,354 $27.10 2007 2q 18 6,374,242 327,282 357,232 5.6% (42,222) 0 0 3 176,754 $26.64 2007 1q 18 6,374,242 311,997 315,010 4.9% 70,608 1 5,400 3 176,754 $27.37 2006 4q 18 6,368,842 377,218 380,218 6.0% 12,385 0 0 3 161,754 $25.97 2006 3q 18 6,368,842 389,603 392,603 6.2% 360,120 1 268,538 2 156,954 $26.01 2006 2q 18 6,100,304 481,185 484,185 7.9% 152,197 0 0 1 268,538 $14.60 2006 1q 18 6,100,304 636,382 636,382 10.4% (36,441) 4 409,047 1 268,538 $14.10 14 THE COSTAR RETAIL REPORT 2010 COSTAR GROUP, INC.