Indianapolis Retail Construction Report

Second Quarter 2008

2008 Estimated Completions Market Facts

Metro U.S.
Population 1,682,815 301,825,750
Total Households 667,391 113,136,906
Median Age 35.5 36.7
Median HH Income $57,794 $51,680
Retail Vacancy* 12.8% 10.2%
Avg. Asking Rent/Sq. Ft.* $15.09 $20.04
* Year-end 2008 Forecast

Construction Pipeline
Projects Sq. Ft.

Est. 2Q 08 Completions 12 1,526,000

Est. 1H 08 Completions 21 1,823,000
Est. 2H 08 Completions 13 960,000
Est. 08 Completions 34 2,783,000
Planned 20 1,469,000

Planned Retail Construction Construction Highlights

Retail supply growth in the Indianapolis market

will be robust in 2008, with 2.7 million square feet
forecast to be completed this year, a 55 percent
increase from 2007. The majority of deliveries
scheduled for 2008, came online during the first half
of the year.
Unlike other metros in the Midwest, Indianapolis
has been relatively unaffected by the downturn in
the residential market due to the metro’s highly
affordable housing. As such, residents in the area
have more disposable income for retail goods and
services. Supply will likely exceed demand in 2008,
as builders are slated to add 3 percent to area stock
this year. The increase in deliveries is expected to
create an uptick in vacancy and may curtail revenue
growth.
The largest project under way is Simon Property
Group’s final two phases of the 950,000-square foot
Hamilton Town Center. This open-air mall is
scheduled to be complete in the second quarter and
will include national-credit tenants such as Dick’s
Sporting Goods, Bed Bath & Beyond, as well as a 16-
screen cinema and IMAX theater.

Phillip Richardson 1 © Marcus & Millichap 2008

Research Associate, Research Services www.MarcusMillichap.com
Sources: Marcus & Millichap Research Services, Reis, TWR, US Census Bureau
The information contained herein was obtained from sources deemed reliable. Every effort was made to obtain complete and accurate information; however, no representation, warranty or guarantee to the accuracy, express or implied, is made.
 Indianapolis Retail Construction Report
Second Quarter 2008

Indianapolis Retail Submarket Map Indianapolis Submarkets

Northeast
Northwest
Southeast
Southwest

Construction Pipeline by Submarket

Projects Square Feet
Under Under Projects Planned
Submarket Construction Construction Planned Square Feet

Southeast 2 193,000 - -

Northeast 3 175,000 2 124,000

Southwest - - 6 322,000

Northwest - - 3 98,000

Nondefined Areas 18 2,001,000 9 925,000

Phillip Richardson 2 © Marcus & Millichap 2008

Research Associate, Research Services www.MarcusMillichap.com
Sources: Marcus & Millichap Research Services, Reis, TWR, US Census Bureau
The information contained herein was obtained from sources deemed reliable. Every effort was made to obtain complete and accurate information; however, no representation, warranty or guarantee to the accuracy, express or implied, is made.
 Indianapolis Retail Construction Report
Second Quarter 2008

Under Construction
Submarket Project Title Primary Address City Sq. Ft. (000's) Owner/Developer Name Target Completion
Northeast Nordstrom's 8702 Keystone Crossing Indianapolis 130 Nordstrom Inc. 3Q 2008
Northeast The Fresh Market 5415 College Avenue Indianapolis 28 The Fresh Market 2Q 2008
Northeast Aldi Food Store 10325 Pendelton Pike Lawrence 17 Aldi Inc. 3Q 2008
Southeast Wal-Mart Supercenter I-65 & County Line Road Indianapolis 180 Wal-Mart Stores Inc. 3Q 2008
Southeast CVS Pharmacy Brookville & Franklin roads Indianapolis 13 Cedarwood Development Co. 3Q 2008
Nondefined Areas Hamilton Town Center I-69 & 146th Street Noblesville 950 Simon Property Group Inc. 2Q 2008
Nondefined Areas Medco Automated Pharmacy CR 450 & CR 500 Whitestown 402 Medco Health Solutions, Inc. 4Q 2008
Nondefined Areas Wal-Mart Supercenter 8191 Upland Way Camby 207 Wal-Mart Stores Inc. 2Q 2008
Nondefined Areas Kohl's U.S. 31 & Mallory Parkway Franklin 90 Kohl's Department Stores 3Q 2008
Nondefined Areas Hobby Lobby Store N Road 500 W & W Road 225 N Avon 58 Hobby Lobby Stores Inc. 2Q 2008
Nondefined Areas Dick's Sporting Goods 13157 Norell Lane Noblesville 48 Dick's Clothing & Sporting Goods 2Q 2008
Nondefined Areas LA Fitness Center & Indoor Pool 10574 Workout Way Carmel 46 LA Fitness International LLC 2Q 2008
Nondefined Areas Life Style Family Fitness Center 116th Street & Fishers Corner Fishers 32 Magnum Development 4Q 2008
Nondefined Areas Fishers Crossing Elipse Parkway & Farley Drive Fishers 24 Capitol Construction 2Q 2008
Nondefined Areas Ace Hardware 2101 Independence Drive Greenwood 23 Kovacs Enterprises 4Q 2008
Nondefined Areas Arbor Village 11401 116th Street Fishers 18 HDG Mansur Capital Group LLC 2Q 2008
Nondefined Areas Cicero Town Center Peru & Brinton streets Cicero 18 A. J. Armstrong Inc. 3Q 2008
Nondefined Areas South Grove Landing Shoppes U.S. Highway 36 & N Road 900 E Bargersville 16 Welbourne Companies 2Q 2008
Nondefined Areas Aldi Food Store 9831 SR 36 Avon 16 Aldi (Indiana) Inc. 2Q 2008
Nondefined Areas CVS Pharmacy Westfield & Hazel Dell roads Noblesville 15 CVS Inc. 3Q 2008
Nondefined Areas CVS Pharmacy 146th Street & Corporate Parkway Noblesville 14 Gershman Brown & Associates 3Q 2008
Nondefined Areas CVS Pharmacy Johnson & Woodsonia drives Bargersville 13 Cedarwood Development Co. 3Q 2008
Nondefined Areas CVS Pharmacy SR 135 & SR 252 Trafalgar 13 Cedarwood Development Co. 3Q 2008
Total Under Construction 2,369

Planned Construction
Submarket Project Title Primary Address City Sq. Ft. (000's) Owner/Developer Name Target Start
Northeast Kroger Store 71st & Binford streets Indianapolis 73 The Kroger Co. 3Q 2008
Northeast Whole Foods Market 3000 86th Street Indianapolis 51 Whole Foods Market N/A
Northwest Kroger Store TBA Nora 74 The Kroger Co. N/A
Northwest NAPA Auto Parts TBA Indianapolis 12 NAPA Genuine Auto Parts N/A
Northwest Discount Tire 8570 Northwest Boulevard Indianapolis 12 Discount Tire Corp. N/A
Southeast Wal-Mart Supercenter SR 37 & Southport Road Southport 190 Wal-Mart Stores Inc. 2Q 2008
Southeast Restaurant 3660 East Street Indianapolis 21 Yum! Brand N/A
Southeast Retail Development Building 239 Meridian Street Indianapolis 12 Sideline Properties LLC N/A
Southeast Gateway of Fall Creek 2201 Delaware Street Indianapolis 12 Mansur Development & Construction Services Corp N/A
Southwest LA Fitness Center 9030 Rockville Road Indianapolis 45 LA Fitness International LLC N/A
Southwest LA Fitness Center 9186 Rockville Road Indianapolis 42 Raceway Market LLC N/A
Nondefined Areas Lantern Commons 161st Street & U.S. 31 Westfield 430 Pine Tree Commercial Realty, LLC 2Q 2008
Nondefined Areas Wal-Mart Supercenter CR 300 & Highway 39 Lebanon 190 Wal-Mart Stores Inc. 2Q 2008
Nondefined Areas Lowe's Home Center TBA Martinsville 138 Lowe's Companies Inc. N/A

Phillip Richardson 3 © Marcus & Millichap 2008

Research Associate, Research Services www.MarcusMillichap.com
Sources: Marcus & Millichap Research Services, BOC, Reis, TWR
The information contained herein was obtained from sources deemed reliable. Every effort was made to obtain complete and accurate information; however, no representation, warranty or guarantee to the accuracy, express or implied, is made.
 Indianapolis Retail Construction Report
Second Quarter 2008

Planned Construction (continued)

Submarket Project Title Primary Address City Sq. Ft. (000's) Owner/Developer Name Target Start
Nondefined Areas LA Fitness Center U.S. 31 & 146th Street Westfield 45 LA Fitness International LLC N/A
Nondefined Areas Wal-Mart Supercenter 111th Street & Allisonville Road Fishers 42 Wal-Mart Stores Inc. 2Q 2008
Nondefined Areas Gables of Avon Retail Center (Phase II) 9831 U.S. 36 Avon 22 Allen Commercial Group N/A
Nondefined Areas Menards Home Improvement Store 10555 U.S. 36 Avon 22 Menards 3Q 2008
Nondefined Areas PetSmart Store 10697 U.S. 36 Avon 20 Maysville Pointe Development N/A
Nondefined Areas Ace Hardware Store 1099 SR 267 Avon 16 Avon Corner Investments LLC 2Q 2008
Total Planned Construction 1,469 N/A: No Start Date Available

Phillip Richardson 4 © Marcus & Millichap 2008

Research Associate, Research Services www.MarcusMillichap.com
Sources: Marcus & Millichap Research Services, BOC, Reis, TWR
The information contained herein was obtained from sources deemed reliable. Every effort was made to obtain complete and accurate information; however, no representation, warranty or guarantee to the accuracy, express or implied, is made.