The State of the Retail Market Southeastern Wisconsin

The State of the Retail Market Southeastern Wisconsin 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? Client Logo CB Richard Ellis | Page 2

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

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

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

The State of the Retail Market Southeastern Wisconsin – Active Retailers § 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. Client Logo CB Richard Ellis | Page 6

The State of the Retail Market Southeastern Wisconsin – Active Retailers § 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 Client Logo CB Richard Ellis | Page 7

The State of the Retail Market Southeastern Wisconsin – Active Submarkets § Bluemound Road Corridor – Brookfield • 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 Client Logo CB Richard Ellis | Page 8

The State of the Retail Market Southeastern Wisconsin – Active Submarkets § Miller Park Way Corridor • GFS Market. Place & 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, Citi. Trends, & AJ Wright § West Allis Towne Center • Citi. Trends – 11, 885 sf; Anna’s Linens – 8, 200 sf; Fitness 19 – 6, 000 sf § Bayshore • Sports Authority – 44, 000 sf, Buffalo Wild Wings, Orvis Client Logo CB Richard Ellis | Page 9

The State of the Retail Market Southeastern Wisconsin – 2010 Summary § 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 Client Logo CB Richard Ellis | Page 10

The State of the Retail Market Southeastern Wisconsin – Outlook for 2011 § 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 Client Logo CB Richard Ellis | Page 11