The CoStar Retail Report

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Westchester/Southern Connecticut Retail Market

M I D - Y E A R 2 0 1 0

The CoStar

Retail Report

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Table of Contents . . . A Methodology. . . C Terms & Definitions. . . D Market Highlights & Overview. . . 1 CoStar Markets. . . 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

Historical Figures at a Glance Leasing Activity Analysis Select Top Lease Transactions

Sales Activity Analysis . . . 19 Sales Activity Analysis

Select Top Sales Transactions

Analysis of Individual CoStar Markets . . . 21 Select Same Building Sales

Select Land Sales Ansonia Market Bethel Market Branford Market Brewster Market Bridgeport Market Bronx Market Brookfield Market Carmel Market Cheshire Market Danbury Market Darien Market East Haven Market

East I-287 Corridor Market Fairfield Market

Fishkill Market

Greenwich Market

Guilford Market

Hamden Market

Meriden Market

Middlebury Market

Milford Market

Monroe Market

Naugatuck Market

New Canaan Market

New Haven Market

Newtown Market

North Market

North Haven Market

Northeast Market

Northwest Market

Norwalk Market

Orange Market

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Table of Contents (Continued)

Ridgefield Market Seymour Market Shelton Market Southbury Market Southeast Market Southwest Market Stamford Market Stratford Market Trumbull Market Wallingford Market Waterbury Market West Haven Market

West I-287 Corridor Market Westport Market

White Plains CBD Market Wilton Market

Woodbridge Market

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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 multi- tenant buildings, including owner-occupied buildings. CoStar Group's national database includes approximately 71.7 billion square feet of coverage in 3 million properties. All rental rates reported in the CoStar Retail Report are calculated using Triple Net (NNN) rental rates.

© 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 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

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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 pur- chased a commercial real estate asset.

Cap Rate: Short for capitalization rate. The Cap Rate is a calcula- tion 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 retail- ers selling such items as apparel, home improvement/furnishings, toys, electronics or sporting goods. The center is usually config- ured 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 entrepre- neurial 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.

Existing Inventory: 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 general- purpose 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 trans-

action 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 commit- ted 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 building- type specific, and are non-overlapping contiguous geographic designations having a cumulative sum that matches the boundar- ies 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 neigh- borhood 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 tour- ist 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 con- figuration 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 freestand-

ing (unconnected) anchors and only a minimum amount of small

specialty tenants. 250,000 – 600,000 SF. A Power Center is dom-

inated by several large anchors, including discount department

stores, off-price stores, warehouse clubs, or "category killers," i.e.,

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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).

Quoted Rental Rate: The asking rate per square foot for a par- ticular building or unit of space by a broker or property owner.

Quoted 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 eco- nomic 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 depart- ment 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 hall- ways, 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 build- ings in a given time period.

Seller: The individual, group, company, or entity that sells a par- ticular 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 activi- ties, 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 con- nect 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 delin- eate 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 selec- tion 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 unify- ing 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 construc- tion and until it receives a certificate of occupancy.

Vacancy 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 avail- able. 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 con- sidered 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 what-

ever time period is being studied.

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Westchester’s Vacancy Decreases to 5.6%

Net Absorption Positive 309,566 SF in the Quarter

T he Westchester retail market did not experience much change in market conditions in the second quarter 2010.

The vacancy rate went from 5.7% in the previous quar- ter to 5.6% in the current quarter. Net absorption was positive 309,566 square feet, and vacant sublease space increased by 3,898 square feet. Quoted rental rates decreased from first quar- ter 2010 levels, ending at $21.59 per square foot per year. A total of two retail buildings with 88,800 square feet of retail space were delivered to the market in the quarter, with 2,092,706 square feet still under construction at the end of the quarter.

Net Absorption

Retail net absorption was moderate in Westchester second quarter 2010, with positive 309,566 square feet absorbed in the quarter. In first quarter 2010, net absorption was positive 422,458 square feet, while in fourth quarter 2009, absorption came in at positive 565,739 square feet. In third quarter 2009, positive 2,186,081 square feet was absorbed in the market.

Tenants moving out of large blocks of space in 2010 include:

CUNY/Health & Hospital Workers Union moving out of 52,000 square feet at Two Fordham Square; Raymour & Flanigan Furniture moving out of 50,000 square feet at The Crossings at Wappingers Falls and New York Sports Club moving out of 28,000 square feet at Putnam Plaza.

Tenants moving into large blocks of space in 2010 include:

Fairway Market moving into 80,000 square feet at Fairway Market; ShopRite moving into 70,000 square feet at 8 Joyce Rd and Fairway Market moving into 70,000 square feet at Post Road Plaza.

Vacancy

Westchester’s retail vacancy rate decreased in the second quarter 2010, ending the quarter at 5.6%. Over the past four quarters, the market has seen an overall decrease in the vacancy rate, with the rate going from 6.2% in the third quarter 2009, to 5.9% at the end of the fourth quarter 2009, 5.7% at the end of the first quarter 2010, to 5.6% in the current quarter.

The amount of vacant sublease space in the Westchester market has trended up over the past four quarters. At the end of the third quarter 2009, there were 200,936 square feet of vacant sublease space. Currently, there are 238,131 square feet vacant in the market.

Largest Lease Signings

The largest lease signings occurring in 2010 included:

the 35,438-square-foot-lease signed by Bed Bath & Beyond at Danbury Landing; the 34,512-square-foot-deal signed by Red White & Blue Thrift Store at 95 Thomaston Ave; and the 24,634- square-foot-lease signed by Big Lots at Turnpike Square.

Rental Rates

Average quoted asking rental rates in the Westchester retail market are down over previous quarter levels, and down from their levels four quarters ago. Quoted rents ended the second quarter 2010 at $21.59 per square foot per year. That compares to $21.89 per square foot in the first quarter 2010, and $22.64 per square foot at the end of the third quarter 2009. This repre- sents a 1.4% decrease in rental rates in the current quarter, and a 4.86% decrease from four quarters ago.

Vacancy Rates by Building Type ^2006-2010

Source: CoStar Property®

Absorption & Deliveries U.S. Vacancy Comparison

Past 8 Quarters Past 8 Quarters

0%

5%

10%

15%

20%

25%

2006 1q 2006 2q 2006 3q 2006 4q 2007 1q 2007 2q 2007 3q 2007 4q 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q Power Center Specialty Center General Retail Shopping Center Mall Total Market

0.89

0.46 0.41

(0.14) 2.19

0.57

0.42 0.31

0.63 0.44

0.79

0.15 1.47

0.04

0.18 0.09

(0.5) 0.0 0.5 1.0 1.5 2.0 2.5

Millions SF

Net Absorption Deliveries

$20

$21

$22

$23

$24

$25

2008 2008 2009 2009 2009 2009 2010 2010

Price in Dollars per Unit

5.0%

5.2%

5.4%

5.6%

5.8%

6.0%

6.2%

6.4%

6.6%

6.8%

Vacancy Rate Percentage

Average Rental Rate Vacancy Rate

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OVERVIEW

Inventory & Construction

During the second quarter 2010, two buildings totaling 88,800 square feet were completed in the Westchester retail market. Over the past four quarters, a total of 1,771,392 square feet of retail space has been built in Westchester. In addition to the current quarter, eight buildings with 179,614 square feet were completed in first quarter 2010, five buildings totaling 37,273 square feet completed in fourth quarter 2009, and 1,465,705 square feet in 12 buildings completed in third quarter 2009.

There were 2,092,706 square feet of retail space under con- struction at the end of the second quarter 2010.

Some of the notable 2010 deliveries include: Fairway Market, an 80,000-square-foot facility that delivered in second quarter 2010 and is now 100% occupied, and 2366 Elton Ave, a 71,164-square-foot building that delivered in first quarter 2010 and is now 100% occupied.

Total retail inventory in the Westchester market area amounted to 178,892,947 square feet in 14,311 buildings and 1044 centers as of the end of the second quarter 2010.

Shopping Center

The Shopping Center market in Westchester currently con- sists of 1012 projects with 52,904,689 square feet of retail space in 1,357 buildings. In this report the Shopping Center market is comprised of all Community Center, Neighborhood Center, and Strip Centers.

After absorbing 199,945 square feet and delivering 80,000 square feet in the current quarter, the Shopping Center sector saw the vacancy rate go from 6.6% at the end of the first quarter 2010 to 6.4% this quarter.

Over the past four quarters, the Shopping Center vacancy rate has gone from 7.2% at the end of the third quarter 2009, to 6.7% at the end of the fourth quarter 2009, to 6.6% at the end of the first quarter 2010, and finally to 6.4% at the end of the current quarter.

Rental rates ended the second quarter 2010 at $19.68 per square foot, down from the $20.07 they were at the end of first quarter 2010. Rental rates have trended down over the past year, going from $21.54 per square foot a year ago to their current levels.

Net absorption in the Shopping Center sector has totaled 717,951 square feet over the past four quarters. In addition to the positive 199,945 square feet absorbed this quarter, posi- tive 61,606 square feet was absorbed in the first quarter 2010, positive 228,904 square feet was absorbed in the fourth quarter 2009, and positive 227,496 square feet was absorbed in the third quarter 2009.

Power Centers

The Power Center average vacancy rate was 6.3% in the sec- ond quarter 2010. With positive 4,401 square feet of net absorp- tion and no new deliveries, the vacancy rate went from 6.4% at the end of last quarter to 6.3% at the end of the second quarter.

In the first quarter 2010, Power Centers absorbed positive 1,960 square feet, delivered no new space, and the vacancy rate went from 6.4% to 6.4% over the course of the quarter. Rental started the quarter at $41.65 per square foot and ended the quar- ter at $41.87 per square foot.

A year ago, in second quarter 2009, the vacancy rate was 7.0%. Over the past four quarters, Power Centers have absorbed a cumulative 177,757 square feet of space and delivered cumula- tive 147,268 square feet of space. Vacant sublease space has gone from 5,900 square feet to 0 square feet over that time period, and rental rates have gone from $30.18 to $42.69.

At the end of the second quarter 2010, there was no space under construction in the Westchester market. The total stock of Power Center space in Westchester currently sits at 5,524,718 square feet in 12 centers comprised of 48 buildings.

No space was under construction at the end of the second quarter 2010.

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 5.0% at the end of second quarter 2010. There was a total of 5,285,499 square feet vacant at that time. The General Retail sector in Westchester currently has average rental rates of $22.08 per square foot per year. There are 218,206 square feet of space under construction in this sector, with 8,800 square feet having been completed in the second quar- ter. In all, there are a total of 12,845 buildings with 105,114,575 square feet of General Retail space in Westchester.

Specialty Centers

There are currently two Specialty Centers in the Westchester market, making up 675,363 square feet of retail space. In this report the Specialty Center market is comprised of Outlet Center, Airport Retail and Theme/Festival Centers.

Vacancy Rates by Building Type ^2006-2010

Absorption & Deliveries U.S. Vacancy Comparison

Past 8 Quarters Past 8 Quarters

Source: CoStar Property• Source: CoStar Property•

0%

5%

10%

15%

20%

25%

2006 1q 2006 2q 2006 3q 2006 4q 2007 1q 2007 2q 2007 3q 2007 4q 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q Power Center Specialty Center General Retail Shopping Center Mall Total Market

0.89

0.46 0.41

(0.14) 2.19

0.57

0.42 0.31

0.63 0.44

0.79

0.15 1.47

0.04 0.18

0.09

(0.5) 0.0 0.5 1.0 1.5 2.0 2.5

2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q

Millions SF

$20

$21

$22

$23

$24

$25

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

2009 4q

2010 1q

2010 2q

5.0%

5.2%

5.4%

5.6%

5.8%

6.0%

6.2%

6.4%

6.6%

6.8%

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WESTCHESTER/SOUTHERN CONNECTICUT – MID-YEAR 2010

Westchester/Southern Connecticut Retail Market

MID-YEAR 2010 – WESTCHESTER/SOUTHERN CONNECTICUT

Westchester/Southern Connecticut Retail Market

OVERVIEW

Specialty Centers in the Westchester market have experi- enced negative (2,700) square feet of net absorption in 2010. The vacancy rate currently stands at 22.3%, and rental rates average

$24.74 per square foot.

Malls

Malls recorded net absorption of negative (2,329) square feet in the second quarter 2010. This net absorption number, combined with no new space that was built in the quarter, caused the vacancy rate to go from 5.6% a quarter ago to 5.6% at the end of the second quarter 2010. Rental rates went from $29.07 per square foot to $31.62 per square foot during that time. In this report the Mall market is comprised of 18 Lifestyle Center, Regional Mall and Super Regional Malls.

Sales Activity

Tallying retail building sales of 15,000 square feet or larger, Westchester/So Connecticut retail sales figures fell during the first quarter 2010 in terms of dollar volume compared to the fourth quarter of 2009.

In the first quarter, four retail transactions closed with a total volume of $41,760,000. The four buildings totaled 243,681 square feet and the average price per square foot equated to

$171.37 per square foot. That compares to 13 transactions total- ing $51,803,000 in the fourth quarter 2009. The total square footage in the fourth quarter was 364,280 square feet for an average price per square foot of $142.21.

Total retail center sales activity in 2010 was down compared to 2009. In the first three months of 2010, the market saw four retail sales transactions with a total volume of $41,760,000. The price per square foot averaged $171.37. In the same first three

months of 2009, the market posted five transactions with a total volume of $87,295,347. The price per square foot averaged

$114.43.

Cap rates have been lower in 2010, averaging 7.45% com- pared to the same period in 2009 when they averaged 8.97%.

One of the largest transactions that has occurred within the last four quarters in the Westchester/So Connecticut market is the sale of Copps Hill Plaza in Ridgefield. This 160,059 square foot retail center sold for $33,400,000, or $208.67 per square foot.

The property sold on 3/31/2010.

Reports compiled by: Deb Fochios CoStar Research Manager and Sharon Koutroumpis CoStar Research Associate.

Absorption & Deliveries U.S. Vacancy Comparison

Past 8 Quarters Past 8 Quarters

Source: CoStar Property• Source: CoStar Property•

0%

5%

10%

15%

20%

25%

2006 1q 2006 2q 2006 3q 2006 4q 2007 1q 2007 2q 2007 3q 2007 4q 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q

0.89

0.46 0.41

(0.14) 2.19

0.57

0.42 0.31

0.63 0.44

0.79

0.15 1.47

0.04

0.18 0.09

(0.5) 0.0 0.5 1.0 1.5 2.0 2.5

2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q

Millions SF

$20

$21

$22

$23

$24

$25

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

2009 4q

2010 1q

2010 2q

5.0% 5.2% 5.4% 5.6% 5.8% 6.0% 6.2% 6.4% 6.6% 6.8%

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CoStar Markets

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

Markets

Ansonia North

Bethel North Haven

Branford Northeast

Brewster Northwest

Bridgeport Norwalk

Bronx Orange

Brookfield Ridgefield

Carmel Seymour

Cheshire Shelton

Danbury Southbury

Darien Southeast

East Haven Southwest

East I-287 Corridor Stamford

Fairfield Stratford

Fishkill Trumbull

Greenwich Wallingford

Guilford Waterbury

Hamden West Haven

Meriden West I-287 Corridor

Middlebury Westport

Milford White Plains CBD

Monroe Wilton

Naugatuck Woodbridge

New Canaan New Haven Newtown

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Historical Deliveries 1982 - 2010

Source: CoStar Property® * Future deliveries based on current under construction buildings.

Construction Activity Markets Ranked by Under Construction Square Footage

# Bldgs Preleased SF Preleased % All Existing U/C

Southwest 2 968,840 80.1% 11,926 604,420

Cheshire 1 587,880 92.0% 10,858 639,000

Bronx 11 13,928 10.6% 11,169 11,953

Newtown 3 21,760 48.9% 38,318 14,833

Stratford 1 10,050 67.0% 13,029 15,000

Westport 4 0 0.0% 9,332 3,330

Stamford 1 780 6.0% 11,776 13,000

Northwest 1 11,062 100.0% 12,173 11,062

Waterbury 1 0 0.0% 14,265 10,500

North 1 0 0.0% 14,322 6,000

All Other 0 0 0.0% 12,719 0

Totals 26 1,614,300 77.1% 12,500 80,489

Recent Deliveries Future Deliveries

Leased & Un-Leased SF in Deliveries Since 2006 Preleased & Un-Leased SF in Properties Scheduled to Deliver

Source: CoStar Property® Source: CoStar Property®

0 1,208,840

2,092,706 639,000 131,484 44,500 15,000 13,320 13,000 11,062 10,500 6,000 Market

Under Construction Inventory Average Bldg Size

Total GLA 1.9

1.4

1.1 1.6

3.2

2.6

2.0 2.2 2.6

1.5

1.0

1.3 1.4 1.6

2.1 3.3

1.6 2.9

1.8

1.3

0.8 1.7

2.6

1.4 1.6

1.9 1.6

2.4 2.3

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5

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 2010

Millions of SF

Deliveries Average Delivered SF

0.0 0.5 1.0 1.5 2.0 2.5 3.0

2006 2007 2008 2009 2010

Millions of SF

Leased Un-Leased

0 200 400 600 800 1,000 1,200 1,400

2010 3q 2010 4q 2011 1q 2011 2q

T

Thousands of SF

Preleased Un-Leased

INVENTORY & DEVELOPMENT

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Historical Construction Starts & Deliveries

Square Footage Per Quarter Starting and Completing Construction

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 7 60,535 38,203 63.1% $36.22 0 60,535

50,000 SF - 99,999 SF 3 207,879 207,879 100.0% $0.00 207,879 0

100,000 SF - 249,999 SF 0 0 0 0.0% $0.00 0 0

250,000 SF - 499,999 SF 0 0 0 0.0% $0.00 0 0

>= 500,000 SF 0 0 0 0.0% $0.00 0 0

Recent Development by Tenancy Existing Inventory Comparison

Based on GLA Developed for Single & Multi Tenant Use Based on Total GLA

2010 Deliveries

Source: CoStar Property® Source: CoStar Property®

Currently Under Construction

0.25 0.24 0.22

1.52

0.81

0.07

1.19

0.48

0.09

0.36

0.04 0.02 0.09

0.02 0.88

0.34

0.12

0.53

0.28 0.20

0.63

0.44

0.79

0.15

1.47

0.04

0.18

0.09

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6

2007 1q 2007 2q 2007 3q 2007 4q 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q

Millions of SF

Construction Starts Deliveries

99%

1%

Multi Single

77%

23%

Multi Single 0 20 40 60 80 100 120

Specialty Center Power Center Mall Shopping Center General Retail

Millions of Square Feet INVENTORY & DEVELOPMENT

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(15)

General Retail Market Statistics

Mid-Year 2010

YTD Net YTD Under Quoted

Market # Blds Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

Ansonia 79 586,325 43,614 43,614 7.4% 4,800 0 0 $8.16

Bethel 45 267,005 10,627 10,627 4.0% 0 0 0 $14.74

Branford 160 1,149,212 41,676 41,676 3.6% 12,535 0 0 $12.72

Brewster 77 572,819 19,539 19,539 3.4% (1,039) 0 0 $11.75

Bridgeport 332 3,207,615 197,065 197,065 6.1% 35,847 0 0 $16.82

Bronx 2,119 19,399,356 850,772 854,872 4.4% 262,608 127,879 131,484 $23.96

Brookfield 81 885,066 81,526 87,234 9.9% 4,640 0 0 $17.32

Carmel 118 624,990 19,927 28,291 4.5% (1,427) 0 0 $19.00

Cheshire 89 608,229 28,048 28,898 4.8% 8,475 0 0 $20.44

Danbury 259 2,411,974 458,006 458,006 19.0% 16,577 0 0 $17.67

Darien 123 680,800 23,777 23,777 3.5% 6,963 0 0 $35.53

East Haven 66 546,713 4,704 4,704 0.9% 606 0 0 $10.37

East I-287 Corridor 601 3,801,025 69,281 71,206 1.9% 9,883 0 0 $30.59

Fairfield 160 1,376,048 40,935 40,935 3.0% 13,793 0 0 $35.52

Fishkill 931 8,557,516 608,838 624,640 7.3% 47,764 8,335 0 $14.16

Greenwich 459 3,310,044 128,306 136,987 4.1% 95 16,200 0 $80.99

Guilford 137 867,561 18,230 18,230 2.1% (3,762) 0 0 $15.57

Hamden 158 1,238,093 40,774 40,774 3.3% (10,388) 0 0 $15.15

Meriden 225 1,274,399 36,533 55,833 4.4% 5,868 0 0 $11.34

Middlebury 13 63,227 2,820 2,820 4.5% 3,000 0 0 $11.03

Milford 389 2,805,352 161,710 161,710 5.8% (24,920) 0 0 $14.52

Monroe 56 409,073 23,112 23,112 5.6% 5,133 0 0 $18.41

Naugatuck 85 592,114 30,297 30,297 5.1% 6,158 0 0 $9.47

New Canaan 70 519,782 32,726 33,104 6.4% (4,081) 0 0 $38.45

New Haven 375 3,076,761 141,960 142,960 4.6% 19,282 0 0 $18.52

Newtown 47 1,813,568 16,341 16,341 0.9% 2,560 0 22,000 $25.00

North 242 1,818,293 97,410 104,610 5.8% (12,334) 0 6,000 $25.89

North Haven 99 834,167 25,858 27,562 3.3% (4,776) 0 0 $15.55

Northeast 22 160,327 3,427 5,227 3.3% 4,680 0 0 $31.02

Northwest 294 1,697,575 115,241 115,241 6.8% 611 0 11,062 $19.55

Norwalk 373 3,727,675 222,776 239,928 6.4% 63,938 4,500 0 $24.21

Orange 102 1,174,215 125,307 126,227 10.7% (18,820) 0 0 $13.32

Ridgefield 76 441,061 12,792 12,792 2.9% 2,267 0 0 $22.09

Seymour 39 218,333 4,130 4,130 1.9% 3,220 0 0 $11.68

Shelton 67 769,052 28,704 28,704 3.7% (704) 0 0 $15.64

Southbury 30 204,220 8,791 8,791 4.3% 5,837 9,300 0 $17.68

Southeast 858 7,004,314 385,417 385,417 5.5% 7,780 8,800 0 $29.61

Southwest 693 5,699,860 218,055 219,655 3.9% (36,743) 0 8,840 $27.14

Stamford 650 5,543,146 190,839 190,839 3.4% 1,330 0 0 $23.75

Stratford 128 902,007 42,103 42,103 4.7% 9,100 0 15,000 $13.91

Trumbull 26 134,816 4,765 4,765 3.5% 0 0 0 $36.00

Wallingford 160 1,645,441 97,913 97,913 6.0% 15,520 0 0 $12.48

Waterbury 380 2,687,359 104,529 105,640 3.9% 10,663 0 10,500 $11.24

West Haven 337 1,979,010 48,783 48,783 2.5% 10,458 0 0 $11.81

West I-287 Corridor 536 3,472,615 45,295 45,295 1.3% 4,328 0 0 $21.42

Westport 201 1,378,337 159,149 171,015 12.4% (39,923) 0 13,320 $52.33

White Plains CBD 200 2,436,506 54,908 57,605 2.4% (2,242) 0 0 $24.10

Wilton 53 389,934 22,561 22,561 5.8% 16,291 0 0 $27.96

Woodbridge 25 151,645 23,444 23,444 15.5% 440 0 0 $17.05

Totals 12,845 105,114,575 5,173,341 5,285,499 5.0% 461,891 175,014 218,206 $22.08

Existing Inventory Vacancy

FIGURES AT A GLANCE

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Mall Market Statistics

Mid-Year 2010

Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

Ansonia 0 0 0 0 0.0% 0 0 0 $0.00

Bethel 0 0 0 0 0.0% 0 0 0 $0.00

Branford 0 0 0 0 0.0% 0 0 0 $0.00

Brewster 0 0 0 0 0.0% 0 0 0 $0.00

Bridgeport 0 0 0 0 0.0% 0 0 0 $0.00

Bronx 1 930,000 125,000 125,000 13.4% 0 0 0 $0.00

Brookfield 0 0 0 0 0.0% 0 0 0 $0.00

Carmel 0 0 0 0 0.0% 0 0 0 $0.00

Cheshire 0 0 0 0 0.0% 0 0 639,000 $0.00

Danbury 1 1,467,086 178,792 178,792 12.2% 2,547 0 0 $0.00

Darien 0 0 0 0 0.0% 0 0 0 $0.00

East Haven 0 0 0 0 0.0% 0 0 0 $0.00

East I-287 Corridor 0 0 0 0 0.0% 0 0 0 $0.00

Fairfield 0 0 0 0 0.0% 0 0 0 $0.00

Fishkill 2 1,569,607 127,231 127,231 8.1% 0 0 0 $0.00

Greenwich 0 0 0 0 0.0% 0 0 0 $0.00

Guilford 0 0 0 0 0.0% 0 0 0 $0.00

Hamden 0 0 0 0 0.0% 0 0 0 $0.00

Meriden 1 897,121 4,650 4,650 0.5% 11,550 0 0 $0.00

Middlebury 0 0 0 0 0.0% 0 0 0 $0.00

Milford 2 1,477,672 10,710 15,857 1.1% (3,460) 0 0 $31.81

Monroe 0 0 0 0 0.0% 0 0 0 $0.00

Naugatuck 0 0 0 0 0.0% 0 0 0 $0.00

New Canaan 0 0 0 0 0.0% 0 0 0 $0.00

New Haven 0 0 0 0 0.0% 0 0 0 $0.00

Newtown 0 0 0 0 0.0% 0 0 0 $0.00

North 1 588,083 29,210 29,210 5.0% 0 0 0 $0.00

North Haven 0 0 0 0 0.0% 0 0 0 $0.00

Northeast 0 0 0 0 0.0% 0 0 0 $0.00

Northwest 1 429,576 27,543 27,543 6.4% 0 0 0 $24.79

Norwalk 0 0 0 0 0.0% 0 0 0 $0.00

Orange 0 0 0 0 0.0% 0 0 0 $0.00

Ridgefield 0 0 0 0 0.0% 0 0 0 $0.00

Seymour 0 0 0 0 0.0% 0 0 0 $0.00

Shelton 0 0 0 0 0.0% 0 0 0 $0.00

Southbury 0 0 0 0 0.0% 0 0 0 $0.00

Southeast 0 0 0 0 0.0% 0 0 0 $0.00

Southwest 2 1,372,755 4,300 4,300 0.3% (1,075) 0 1,200,000 $56.84

Stamford 1 1,071,000 0 0 0.0% 0 0 0 $0.00

Stratford 0 0 0 0 0.0% 0 0 0 $0.00

Trumbull 1 1,346,555 39,129 39,129 2.9% 0 0 0 $27.00

Wallingford 0 0 0 0 0.0% 0 0 0 $0.00

Waterbury 1 999,163 53,773 53,773 5.4% (4,641) 0 0 $21.81

West Haven 0 0 0 0 0.0% 0 0 0 $0.00

West I-287 Corridor 0 0 0 0 0.0% 0 0 0 $0.00

Westport 0 0 0 0 0.0% 0 0 0 $0.00

White Plains CBD 4 2,524,984 213,692 213,692 8.5% 0 0 0 $31.71

Wilton 0 0 0 0 0.0% 0 0 0 $0.00

Woodbridge 0 0 0 0 0.0% 0 0 0 $0.00

Totals 18 14,673,602 814,030 819,177 5.6% 4,921 0 1,839,000 $31.62

FIGURES AT A GLANCE

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Power Center Market Statistics

Mid-Year 2010

Market # Ctrs Total GLA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

Ansonia 0 0 0 0 0.0% 0 0 0 $0.00

Bethel 0 0 0 0 0.0% 0 0 0 $0.00

Branford 0 0 0 0 0.0% 0 0 0 $0.00

Brewster 1 492,951 37,500 37,500 7.6% 0 0 0 $0.00

Bridgeport 0 0 0 0 0.0% 0 0 0 $0.00

Bronx 2 1,120,655 64,450 64,450 5.8% 0 0 0 $93.89

Brookfield 0 0 0 0 0.0% 0 0 0 $0.00

Carmel 0 0 0 0 0.0% 0 0 0 $0.00

Cheshire 0 0 0 0 0.0% 0 0 0 $0.00

Danbury 0 0 0 0 0.0% 0 0 0 $0.00

Darien 0 0 0 0 0.0% 0 0 0 $0.00

East Haven 0 0 0 0 0.0% 0 0 0 $0.00

East I-287 Corridor 0 0 0 0 0.0% 0 0 0 $0.00

Fairfield 0 0 0 0 0.0% 0 0 0 $0.00

Fishkill 1 924,400 124,400 124,400 13.5% 0 0 0 $0.00

Greenwich 0 0 0 0 0.0% 0 0 0 $0.00

Guilford 0 0 0 0 0.0% 0 0 0 $0.00

Hamden 1 376,616 32,502 32,502 8.6% 0 0 0 $15.31

Meriden 0 0 0 0 0.0% 0 0 0 $0.00

Middlebury 0 0 0 0 0.0% 0 0 0 $0.00

Milford 0 0 0 0 0.0% 0 0 0 $0.00

Monroe 0 0 0 0 0.0% 0 0 0 $0.00

Naugatuck 0 0 0 0 0.0% 0 0 0 $0.00

New Canaan 0 0 0 0 0.0% 0 0 0 $0.00

New Haven 0 0 0 0 0.0% 0 0 0 $0.00

Newtown 0 0 0 0 0.0% 0 0 0 $0.00

North 0 0 0 0 0.0% 0 0 0 $0.00

North Haven 3 870,443 48,260 48,260 5.5% 6,361 0 0 $30.00

Northeast 0 0 0 0 0.0% 0 0 0 $0.00

Northwest 1 777,492 40,200 40,200 5.2% 0 0 0 $0.00

Norwalk 0 0 0 0 0.0% 0 0 0 $0.00

Orange 0 0 0 0 0.0% 0 0 0 $0.00

Ridgefield 0 0 0 0 0.0% 0 0 0 $0.00

Seymour 0 0 0 0 0.0% 0 0 0 $0.00

Shelton 0 0 0 0 0.0% 0 0 0 $0.00

Southbury 0 0 0 0 0.0% 0 0 0 $0.00

Southeast 1 300,000 0 0 0.0% 0 0 0 $0.00

Southwest 0 0 0 0 0.0% 0 0 0 $0.00

Stamford 1 342,161 0 0 0.0% 0 0 0 $50.00

Stratford 1 320,000 0 0 0.0% 0 0 0 $0.00

Trumbull 0 0 0 0 0.0% 0 0 0 $0.00

Wallingford 0 0 0 0 0.0% 0 0 0 $0.00

Waterbury 0 0 0 0 0.0% 0 0 0 $0.00

West Haven 0 0 0 0 0.0% 0 0 0 $0.00

West I-287 Corridor 0 0 0 0 0.0% 0 0 0 $0.00

Westport 0 0 0 0 0.0% 0 0 0 $0.00

White Plains CBD 0 0 0 0 0.0% 0 0 0 $0.00

Wilton 0 0 0 0 0.0% 0 0 0 $0.00

Woodbridge 0 0 0 0 0.0% 0 0 0 $0.00

Totals 12 5,524,718 347,312 347,312 6.3% 6,361 0 0 $42.69

FIGURES AT A GLANCE