Director of Brokerage Services Rio Ranch Retail Market Commercial Real Estate & Retail Leakage This is ABQ Uptown, the metro area’s first outdoor lifestyle center. It’s been an outstanding success and has exceeded the retailers’ expectations in sales per square foot generated. My wife is a great help! August 19, 2010 Ken L. Schaefer Director of Brokerage Services

Retail Leakage Methodology Calculate NM Per Capita Retail Spending Total NM Gross Receipts / NM Pop. Calculate Rio Rancho’s Per Capita Retail Spending Total RR Gross Receipts / RR Pop. If Rio Rancho is Less than NM Leakage Exists

Retail Per Capita Spending Comparison State of NM $13,353 $7,795 $9,597 $16,141

Retail Submarket Overview 2009 Population*** Retail SF** Retail Space per Capita (SF) Northeast Heights 91,972 4,257,339 46 Cottonwood 15,420 4,070,851 264 Far Northeast Heights 109,141 3,887,636 36 North I-25 23,074 3,200,883 139 Southeast Heights 58,790 2,757,869 47 West Mesa 105,293 2,087,767 20 Uptown 6,247 1,952,699 313 Rio Rancho* 88,293 1,790,271 University 34,295 1,018,295 30 South Valley 110,913 1,017,346 9 North Valley 42,590 968,540 23 Downtown 21,728 552,038 25   Total 707,756 27,561,534 39 The retail market has the most property types. Neighborhood & Community centers are anchored by grocery stores. Free-standing centers have increased their share with the incredible growth of Super Wal-Marts and Walgreens on almost every corner. U.S.: 40 *Rio Rancho Comprises 6.5% of Total Market **Grubb & Ellis Research / 10,000+SF ***Source ESRI/Claritas 2009 Estimates

Historical Rio Rancho Retail Leakage

Strategies to Minimize the “Leakage” Identify & Target Missing Retail Categories eg. Consumer Electronics Increase Awareness of GRIP to Commercial Real Estate Agents Feed the City Centre Retail Hunger Impact Fee Waivers Increase Awareness of “Retail Leakage” to Rio Ranchoans PR Campaign

Thank You! Ken L. Schaefer Ken.Schaefer@Grubb-Ellis.com 505.880.7012