2012 FORT WAYNE, INDIANA RETAIL MARKET SURVEY

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1 2012 FORT WAYNE, INDIANA RETAIL MARKET SURVEY The Zacher Company/CORFAC International 444 E. Main Street, Suite 203 Fort Wayne, IN / Prepared with the assistance of: Steven K. Zacher SIOR, CCIM Alfred J. Zacher SIOR John M. Adams CCIM Fletcher Moppert Brent L. Overholt MAI Brian G. Bean Dan Reese Joy Neuenschwander

2 Quadrant Fort Wayne, IN Retail Total Sq. Ft Retail Vacant Sq. Ft. 2012% Retail Vacancy 2011 Retail Vacant Sq. Ft. 2011% Retail Vacancy Percent Change Northwest 3,209, , % 295, % 0.48% Northeast 6,349,963 1,419, % 1,654, % -4.06% Southwest 3,121, , % 375, % -1.32% Southeast 1,133, , % 366, % -4.31% TOTALS 13,814,258 2,382, % 2,692, % -2.29% Type of Center Size (Sq. Ft.) # of Available Spaces Neighborhood Strip Grocery Anchored Average Rental Rates 1,000-2, $ $ ,500-5, $ $ ,000-20, $ $ , $ $ ,000-2, $ $ ,500-5,000 6 $ $ ,000-20, $ $ , Power 1,000-2, $ $ ,500-5,000 9 $ $ ,000-20,000 9 $ $ , $ $15.00 Regional Mall 1,000-2,500 2 n/a 2,500-5,000 2 n/a 5,000-20,000 0 n/a 20, n/a Stand Alone 25 $ $28.00

3 Market Overview: 2012 Review: Vacancy rates and rents remain generally flat or improved only marginally. Costco announced their consideration to build a 150,000 sq. ft. warehouse club on 14.5 acres, in the SW Quadrant of I-69 (Exit 311) and Lima Rd./State Rd. 3. Kroger opened its second 125,000 sq. ft. marketplace store in October at the Village of Coventry, I-69, exit 302, and West Jefferson Blvd./State Rd. 37, US 24. In October, 2012, there were 18 vacant big boxes of 20,000 sq. ft. or greater totaling 992,830 sq. ft. Landlords have increasingly turned to creative uses for their vacant space by adapting non-traditional retail uses, such as medical and educational. For example, the former Kroger at State Blvd. and Spy Run Ave. is being converted to a climatecontrolled self storage facility. Retail space is returning to downtown Fort Wayne with the availability of first floor space at the Anthony Wayne Building and The Harrison development adjacent to Parkview Field. Planet Fitness will be opening two locations - Covington Plaza in the SW quadrant and Stellhorn Village (Maplecrest Rd.& Stellhorn Rd.) in the NE quadrant. DSW Shoes opened a 12,878 sq. ft. store in the former World Market location at Coldwater Rd. and Coliseum Blvd. A new retail strip center at the NW corner of Illinois Rd. & Thomas Rd. in front of Orchard Crossing Shopping Center will have Verizon Wireless, Noodles, Kay Jewelers and Comfort Mattress. Sapporo Japanese Steakhouse is building a 9,000 sq. ft. restaurant on Lima Rd. across from Meijer and Home Depot Forecast: Retail leasing activity will be limited to the most popular shopping centers and attractive high traffic and high visibility sites. Lease rates will exceed $30.00 per square foot for high traffic and high visibility corner locations. However, lease rates will fall for inline space in Class B centers in secondary locations. Second generation users will pay significantly less than the original tenant.

4 Major Retail Transactions 2012 Retailer Type Fort Wayne Location Size Kroger Marketplace Grocery Superstore Village of Coventry DSW Shoes Shoe Store Coldwater Rd. at Coliseum Blvd. across from Coliseum Blvd. Planet Fitness (2) Fitness Center Covington Plaza Stellhorn Village 125,000 Sq. Ft. 12,878 Sq. Ft. 18,000 Sq. Ft. 24,000 Sq. Ft. Max Fitness Fitness Center Dupont Rd. & Lima Rd. New Store 20,000 Sq. Ft. Max Fitness (Rebranding of former Cardinal Fitness location) Max Fitness (Rebranding of former Cardinal Fitness location and expansion) Sapporo Steakhouse Culver s Fitness Center 7245 Maplecrest 8,800 Sq. Ft. Fitness Center 9914 Illinois Rd. 9,600 Sq. Ft., expanding to 12,800 Sq. Ft. Oriental Steakhouse and Sushi Fast Casual Restaurant Lima Rd. Washington Center Rd. 9,000 Sq. Ft. 5,000 Sq. Ft. Fort Wayne School of Dance Dance Studio Chapel Ridge 4,000 Sq. Ft. Verizon Wireless (2) Cellular Phone Store Lima Rd. & Dupont Rd., Bluffton Rd. & Lower Huntington Rd. 800 Degrees Pizza Restaurant Illinois Rd. Undetermined Undetermined Disc Replay CD Store Coldwater Crossing 13,481 Sq. Ft. DSW Shoes Shoe Store Coldwater Rd. at Coliseum Blvd. across from Coliseum Blvd. 12,878 Sq. Ft. Lone Star Steakhouse Restaurant Lima Rd. Closed O Charlie s Restaurant Restaurant Lima Rd. Closed

5 Survey Areas: NW Area Includes Zip Codes: 46818, NE Area Includes Zip Codes: 46805, 46815, 46825, 46835, SW Area Includes Zip Codes: 46804, SE Area Includes Zip Codes: 46803, 46806, 46807l, 46816, Methodology: The Zacher Company/CORFAC International reports are a compilation of data from many sources. It is reviewed annually and adjusted due to circumstances in the market, such as new construction, re-positioning of existing buildings to another type of use, and demolition. The vacancy square footage is compiled from a combination of online data from multiple major listing services, broker s listing information from their websites and their mailings, and industry knowledge. Several brokers in our office are involved in the creation of this report to provide the most accurate information possible. We cannot be responsible, however, for errors, omissions, prior sale or lease or withdrawal from the market. Date Published: 11/5/12