Client Logo The State of the Retail Market Southeastern Wisconsin

CB Richard Ellis | Page 2 Client Logo The State of the Retail Market  US Retail Sales Trends  Southeastern Wisconsin Shopping Center Statistics  Active Retailers – SE Wisconsin  Active Submarkets – SE Wisconsin  2010 Summary  What will happen in 2011?

CB Richard Ellis | Page 3 Client Logo The State of the Retail Market

CB Richard Ellis | Page 4 Client Logo The State of the Retail Market

CB Richard Ellis | Page 5 Client Logo The State of the Retail Market Southeastern Wisconsin – Market Statistics (1)Footnotes go here. Arial 8pt (2)Footnotes go here. (3)Footnotes go here. (4)Footnotes go here.

CB Richard Ellis | Page 6 Client Logo The State of the Retail Market  Grocers Aldi: Grafton, Wauwatosa, proposed for Pewaukee Pick n’ Save: new stores in Brookfield (Metro Market), Greenfield, Menomonee Falls (100,000), Mequon, West Bend (north & south) Sendiks: Opened a 46,000 sf store in October at New Berlin Plaza Woodman’s: Opened a new 248,000 sf store in Menomonee Falls. Costco: Proposed 148,000 sf store on Highway 164 in the Village of Pewaukee Piggly Wiggly: Opened Capitol Dr. near Midtown, East Capitol Drive, and Kenosha. Southeastern Wisconsin – Active Retailers

CB Richard Ellis | Page 7 Client Logo The State of the Retail Market  Other Active Major Retailers Ultimate Electronics: leased 45,564 sf former Circuit City near Southridge Wal-Mart: new supercenters in Muskego & Waukesha, new Supercenter planned in Greenfield A new 135,000 sf Target store is proposed for Brookfield. AJ Wright opened in Milwaukee & Racine Citi Trends opened stores in Milwaukee, West Allis, Racine, & Kenosha Southeastern Wisconsin – Active Retailers

CB Richard Ellis | Page 8 Client Logo The State of the Retail Market  Bluemound Road Corridor – Brookfield Buy Buy Baby leased the former Circuit City (40,000 sf) Golfsmith opened 1 st Wisconsin Store – leased 24,583 sf – former La Z Boy space CVS Pharmacy took over 13,000 sf of the former V Richards space  Waukesha South Shoppes at Fox River – Target/ Pick ‘n Save anchored development – Phase I almost 100% leased Walmart Supercenter opened last week – 176,000 sf Southeastern Wisconsin – Active Submarkets

CB Richard Ellis | Page 9 Client Logo The State of the Retail Market  Miller Park Way Corridor GFS MarketPlace & Firestone – end user pad sales Cermak Fresh Market – adjacent to Target  East Capitol Drive Former Jewel store converted to a 3 tenant building for Piggly Wiggly, CitiTrends, & AJ Wright  West Allis Towne Center CitiTrends – 11,885 sf; Anna’s Linens – 8,200 sf; Fitness 19 – 6,000 sf  Bayshore Sports Authority – 44,000 sf, Buffalo Wild Wings, Orvis Southeastern Wisconsin – Active Submarkets

CB Richard Ellis | Page 10 Client Logo The State of the Retail Market  Market recovery underway  Mid-boxes returned to the market  Discount retailers are thriving  Attractive rental rates brings new activity  Most market activity involved infill sites & existing shopping center space  Grocery category continues to evolve in SE WI  Lack of new development  Land deals limited to end user buyers  Lack of financing for spec development and land purchases Southeastern Wisconsin – 2010 Summary

CB Richard Ellis | Page 11 Client Logo The State of the Retail Market  ICSC predicts a 3% to 3.5% holiday sales increase over 2009 – largest since 2009  Look for occupancy rates to continue to recover  Rental rates will improve as available space tightens  The big box discount/ grocery chains will continue to drive new development in the market  Retailers will continue to look to existing vacant space to satisfy their expansion requirements  The “next generation” of national retail concepts will start to expand in the market Southeastern Wisconsin – Outlook for 2011