James | Bitton Retail Team Investment Services

Market Knowledge Q1 2014 | RETAIL GION GREATER COLUMBUS RE RETAIL TRENDS REPORT r E-Commerce Paves Way Fo New Retail Scene EW z chains are finding their e-bi products online, most big ations. U.S. retailers now selling e-focused warehouse oper With about 92 percent of conventional stor itional locations alongside at the end of 2011, and that arms outgrowing their trad a nearly $200 billion business NAIOP, e-commerce was as many have According to a report by the region are following suit ss . Big box retail stores acro est 32,065 square feet of is expected to double by 2016 number s in particular, saw a mod nt opportunities. Columbu d. The vacancy rate become prime redevelopme in a row of this upward tren quarter, the eighth quarter ar Tree first e signed this quarter by Doll positive absorption in the wer percent. Significant leases tly and remains stable at 9.3 at Graceland Shopping feet dropped sligh pping Center (9,150 square bury Plaza), Graceland Sho (9,059 square feet at Sun sing Shopping Center). 00 square feet at Powell Cros Plus (9,0 Center), and Pets Supplies TIONS , over 1.34 million square FORECASTS AND REFLEC sign for retailers. Currently increase, which is a good fourth quarter. Two • Construction continues to square feet more than the in Central Ohio, over 212,000 feet), and Polaris feet is under construction The Lane (67,500 square as pleted in the first quarter e ground significant projects were com rs. Several projects have brok ume re feet) are now open to cons e-foot Giant Eagle at of Commerce (13,913 squa Centers y include the 94,340-squar Significant projects underwa ket St. and Main over the past three months. hood center located at Mar 24,338-square-foot neighbor p’s w. on Parkway, Daimler Grou on Fifth project in Grandvie Britt re-foot The View ve Real Estate’s 23,000-squa in St. in New Albany, and Solo e investment opportunities begin to look for prim inues to blossom, buyers will ble sales • As the retail market cont well performing assets. Nota rs will look to dispose of their (18,353 SF), and this asset class, just as selle 097 SF), Mill Valley Plaza de Cleveland-Innis Plaza (42, ng 3700 Fishinger ions for first quarter inclu transact the Kroger Company selli SF). Big Box sales included 3575 W. Dublin Strawberry Plaza (12,432 ington Coat Factory selling ert Weiler Company, and Burl levard (100,000 SF) to Rob 2) Bou s Activity on Page to Devonshire REIT. (See Sale RENTAL RATES Granville Road (90,700 SF) RVI COLUMBUS REGION OVE Q1 Q2 2014 2014* VACANCY NET ABSORPTION CONSTRUCTION RENTAL RATES — wing quarter *Projected change to follo PLETIONS AND VACANCY RATE OVER COM GE, BIG BOX BACK RENTAL RATES CONVER Asking Rates s $11.04 $10.91 $10.67 $12.00 $10.00 $8.00 $5.99 $6.00 Q3 13 Q4 13 Q1 14 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Big Box Community Neighborhood Anchored Strip bus Completions and Ansorption $14.00 www.colliers.com/colum 14.0% 900,000 $16.00 $4.00 ABSORPTIONS 12.0% 700,000 10.0% 9.3% 500,000 8.0% 300,000 100,000 (100,000) (300,000) 6.0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 12 12 12 13 13 13 13 14 10 10 10 11 11 11 11 12 08 08 08 09 09 09 09 10 (500,000) (700,000) 4.0% 2.0% 0.0% Completions Absorption Vacancy Rate Vacancy Rate MARKET INDICATORS The average asking rental rates for Big Box has seen a slight increase to $5.99, from its previous low of $5.92. Anchored and strip neighborhood centers rates have met around the $11.00 region The mark. posted positive results during the first quarter in 2014, with vacancy rates remaining stable at 9.3 percent.

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