Milwaukee

2008 Estimated Completions

Retail Construction Report
Second Quarter 2008

Market Facts
Metro Population Total Households Median Age Median HH Income Retail Vacancy* Avg. Asking Rent/Sq. Ft.*
* Year-end 2008 Forecast

U.S. 301,825,750 113,136,906 36.7 $51,680 10.2% $20.04

1,519,871 611,551 37.5 $56,066 11.7% $15.31

Construction Pipeline
Projects Est. 2Q 08 Completions Est. 1H 08 Completions Est. 2H 08 Completions Est. 08 Completions Planned 10 16 1 17 13 Sq. Ft. 669,000 986,000 11,000 997,000 308,000

Planned Retail Construction

Construction Highlights
After healthy performance last year, Milwaukee retail development is expected to soften in 2008. Builders have been busy during the second quarter of 2008, with an estimated 669,000 square feet of space coming online, or roughly 67 percent of total completions in 2008. The uncertainty in the housing market and current economic concerns will slow retail sales in the near future, leading to many retailers and developers to postpone expansion plans. The largest under way project is a Woodman’s Food Market, located at 6354 W. Beloit Road in Oak Creek. The development is set to add 237,000 square feet by the end of the second quarter. Continental Properties has halted construction on all three stages of its 480,000-square foot retail complex in Menomonee Falls. The 1.5 millionsquare foot Pabst Farm Town Center Shopping Mall has also been pushed back, as redevelopment plans have not yet been solidified.

Phillip Richardson
Research Associate, Research Services

1

© Marcus & Millichap 2008
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.

Milwaukee
Milwaukee Retail Submarket Map

Retail Construction Report
Second Quarter 2008

Milwaukee Submarkets
North Milwaukee/Ozaukee South Milwaukee County Waukesha County

Construction Pipeline by Submarket
Projects Under Construction 2 4 2 2 Square Feet Under Construction 110,000 454,000 46,000 72,000 Projects Planned 5 2 5 1 Planned Square Feet 144,000 43,000 121,000 12,000

Submarket North Milwaukee/Ozaukee South Milwaukee County Waukesha County Nondefined Areas

Phillip Richardson
Research Associate, Research Services

2

© Marcus & Millichap 2008
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.

Milwaukee
Under Construction
Submarket North Milwaukee/Ozaukee North Milwaukee/Ozaukee South Milwaukee County South Milwaukee County South Milwaukee County South Milwaukee County Waukesha County Waukesha County Nondefined Areas Nondefined Areas Project Title Grafton Commons McCormick & Schmick's Seafood Restaurant Woodman's Food Supermarket Target Department Store Six-Points Apartment Miller Park Shoppes Summit Village Sunny Slope Retail Building Ashley Furniture Store Carpetland Store Total Under Construction Primary Address 1050 N. Port Washington Road 2500 N. Mayfair Road 6354 W. Beloit Road St. Paul Avenue & Fourth Street 2100 Miller Park Way Rockway Lane & North Avenue 3333 S. Sunnyslope Road Cabela Way & Pioneer Road Appleton Avenue & Maple Road City Grafton Wauwatosa Oak Creek West Allis Milwaukee Brookfield New Berlin Polk Germantown S. Lovers Lane Road & W. Drexel Avenue Franklin

Retail Construction Report
Second Quarter 2008
Sq. Ft. (000's) Owner/Developer Name 98 12 237 125 80 12 35 11 57 14 680 Continental Properties McCormick & Schmick Seafood Restaurants Woodman's Target Stores Headquarters Toldt Development Inc. Heartland Development Group Ltd. Frontier Development Brian Kliesmet Ashley Furniture Industries Carpetland USA Target Completion 2Q 2008 2Q 2008 2Q 2008 2Q 2008 2Q 2008 2Q 2008 2Q 2008 3Q 2008 2Q 2008 2Q 2008

Planned Construction
Submarket North Milwaukee/Ozaukee North Milwaukee/Ozaukee North Milwaukee/Ozaukee North Milwaukee/Ozaukee North Milwaukee/Ozaukee South Milwaukee County South Milwaukee County Waukesha County Waukesha County Waukesha County Waukesha County Waukesha County Nondefined Areas Project Title Pick 'n Save Grocery Store Grafton Commons Pleasant Street Market (Phase II) Walgreens Drug Store Endeavor Retail Office Max Store Walgreen's Drug Store German American Restaurant & Bar Elliot's Ace Hardware Store Aldi's Food Store City Center Retail Blue Ribbon Shoppes Retail Center NAPA Auto Parts Store Total Planned Construction Primary Address Delaware Avenue & Arrowhead Road Highway 60 & Port Washington Road E. Pleasant & N. Commerce streets Bradley Road & 66th Street 2300 Washington Street S. 76th Street & W. Rawson Avenue 6001 W. Greenfield Avenue 14750 Silver Spring Drive 1268 Capitol Drive State Highway 83 & Arrowhead Drive 15233 W. National Avenue 1730 Summit Avenue Site to be determined City Grafton Grafton Milwaukee Brown Deer Grafton Franklin West Allis Menomonee Falls Pewaukee Mukwonago New Berlin Oconomowoc Milwaukee Sq. Ft. (000's) Owner/Developer Name 72 24 21 15 12 29 15 40 22 17 16 14 12 308 MSI General Corp. Continental Properties The Brewery Works Inc. Walgreens Co. Endeavour Development Inc. The Crown Group SIDCOR Real Estate United Donauschwaben of Milwaukee Elliott's Ace Hardware Aldi Inc. Realcap Richard Shovick NAPA Genuine Auto Parts National Headquarters Target Start N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A: No Start Date Available

Phillip Richardson
Research Associate, Research Services

3

© Marcus & Millichap 2008
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.