redbud physical therapy portfolio -...

DISCLAIMER

CBRE © 2015 All Rights Reserved. All information included in this letter/proposal pertaining to CBRE—including but not limited to its operations, employees, technology and clients—are proprietary and confidential, and are supplied with the understanding that they will be held in confidence and not disclosed to third parties without the prior written consent of CBRE. This letter/proposal is intended solely as a preliminary expression of general intentions and is to be used for discussion purposes only. The parties intend that neither shall have any contractual obligations to the other with respect to the matters referred herein unless and until a definitive agreement has been fully executed and delivered by the parties. The parties agree that this letter/proposal is not intended to create any agreement or obligation by either party to negotiate a definitive lease/purchase and sale agreement and imposes no duty whatsoever on either party to continue negotiations, including without limitation any obligation to negotiate in good faith or in any way other than at arm’s length. Prior to delivery of a definitive executed agreement, and without any liability to the other party, either party may (1) propose different terms from those summarized herein, (2) enter into negotiations with other parties and/or (3) unilaterally terminate all negotiations with the other party hereto.

This valuation analysis or broker opinion of value is not an appraisal and has not been performed in accordance with the Uniform Standards of Professional Appraisal Practice. Neither you, nor any third parties, may rely on this analysis for any tax purposes, estate work, litigation, lending or any other matter other than your direct use in connection with a contemplated transaction.

01EXECUTIVE SUMMARY

02TEAM OVERVIEW

03ASSET OVERVIEW

AFFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENT

CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

Your receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior

written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and

information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

ASSET OVERVIEW

4 | REDBUD PHYSICAL THERAPY PORTFOLIO© 2017 CBRE Limited. Data © TeleAtlas, Google, AerialExpress, DigitalGlobe, Landiscor, USGS, i-cubed. The information contained herein (the “Information”) is intended for informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified byeither CBRE Limited or any of its affiliates (CBRE Limited and its affiliates are collectively referred to herein as “CBRE”). CBRE neither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy, correctness, completeness, or suitability of, or decisions based upon or in connection with, the Information. The recipient of the Information should take such stepsas the recipient may deem appropriate with respect to using the Information. The Information may change and any property described herein may be withdrawn from the market at any time without notice or obligation of any kind on the part of CBRE. The Information is protected by copyright and shall be fully enforced.

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Glenpool

REDBUD PHYSICAL THERAPY PORTFOLIO MAP

REDBUD PHYSICAL THERAPY PORTFOLIO | 5

INVESTMENT SUMMARY

The Redbud Physical Therapy Portfolio (“RPTP”) consists of five properties located within 35 miles of the Tulsa MSA. These consist of three single tenant triple net medical office buildings and two multi-tenant office/retail properties. The improvements total ±27,320 SF situated on ±2.76 acres of land. Redbud PT is the major tenant in all buildings, a wholly owned subsidiary of Confluent Health Care. The single tenant buildings are currently 100% occupied with the multi-tenant buildings being 48% and 82% leased. The portfolio currently has eight leased spaces and three vacancies.

INVESTMENT HIGHLIGHTS

• CASH FLOW: With the property at 82% occupancy, the asset provides investors with in-place cash flow as well as potential for yearly NOI growth. The portfolio also provides redevelopment opportunities and cash flow improvement.

• FUTURE INCOME GROWTH: Below market lease rates offer investor upside through potential income growth while serving as a hedge against inflation.

• VARIABLE LOCATIONS: The main facility is conveniently situated in Tulsa with four properties located within 35 miles of the Tulsa MSA.

• REPLACEMENT COST: At $121 psf, well below replacement costs.

• RENOVATION & EXPANSION POTENTIAL: The multi-tenant properties in Skiatook and Pryor provide an opportunity to renovate and increase cash flow.

$/SFPRO FORMA NNN NOI

CAP

CONTRACT PRICE

$3,305,000 $121.00 $265,000.00 8.00%

PROPERTY OVERVIEW

Location Tenant Size (SF) Year Built Site Area Parking Zoning

Tulsa

4812 East 33rd Street Redbud Physical Therapy 5,460 1976 0.52 35 High Density Commercial

Tulsa, OK 74135

1486 - 1496 South Elliott Redbud Physical Therapy 3,220 1979 0.87 45 Office

Pryor, OK 74361 KeeWes 500

Complete Home Health 1,850

Michelle Hickox 750

Office 2,180

Total 8,500

209 East Rogers Blvd Redbud Physical Therapy 2,600 1923 0.18 5 High Density Commercial

Skiatook, OK 74070 Storage 1,860

Apartment 1,000

Total 5,460

817 West Cherokee Redbud Physical Therapy 4,900 1986 0.39 16 Commercial

Wagoner, OK 74467

500 East 141st Street Redbud Physical Therapy 3,000 1982 0.80 17 General Commercial

Glenpool, OK 74033

TOTALS 27,320 2.76

REDBUD PHYSICAL THERAPY PORTFOLIO PROPERTY OVERVIEW

Pryor

Glenpool

Wagoner

Skiatook

6 | REDBUD PHYSICAL THERAPY PORTFOLIO

PROPOSED LOAN TERMS:

ACQUISITION $3,305,000 Contract Price

REDEVELOPMENT $127,000 Skiatook & Pryor

TOTAL $3,432,000

BANK FINANCING

JANUARY 1, 2018

LTV: 80%

LOAN: $2,745,600

EQUITY: $686,400

AMORTIZATION: 20 years

TERM: 10 years

INTEREST RATE 5% or less

TENANT INFORMATION

REDBUD PHYSICAL THERAPY

• Redbud Physical Therapy is a wholly owned subsidiary of Confluent Health. Confluent Health is a Louisville, Kentucky-based holding company focused on creating a healthcare system that recognizes physical and occupational therapy providers as the Best First Choice® for preventing and managing musculoskeletal and movement disorders.

• Confluent Health offers the following shared management services – evidence-based practice, patient loyalty, regulatory assurance, marketing and branding, clinic operations, hiring and retention, strategy, accounting and finance, and customer service – to Texas Physical Therapy Specialists (TexPTS), Evidence In Motion (EIM), BreakThrough Physical Therapy (BTPT), ProRehab Physical Therapy (Louisville), ProRehab-PC (Evansville), Physical Therapy Central (PT Central) and Fit For Work (FFW). Together, these companies share a common ownership team and are committed to developing a learning, purpose, and coaching culture.


TULSA,OK4812 EAST 33RD STREETOVERVIEW

• Single Tenant Office Building

SIZE

• 5,460 Building SF

TENANT

• Redbud Physical Therapy

SITE AREA

• 0.52 Acre Site

ZONING

• High Density Commercial District (CH)

CONSTRUCTION

• Metal Building with Brick Veneer Storefront

• Metal Gable Roof

AGE

• 1976

FINISHES

• Carpet

• Acoustic Tile - 2x4

• Florescent Lighting

• Kitchen - VCT (Vinyl Tile)

• 2 ADA Restrooms - VCT (Vinyl Tile)

PARKING

• 35 Asphalt Parking Spaces

Aerial

Photo

Floor Plan


TULSA

Tulsa has a population of 403,090 and is the 2nd largest city in the state. Located in the northeast corner of Oklahoma, Tulsa sits along the Arkansas River and at the foothills of the Ozark Mountains in a region known as “Green Country”. Once dependent on the oil industry, Tulsa now has a diverse economy with strong footings in the energy, finance, aviation, telecommunications, and technology sectors. Tulsa is also considered the cultural and arts center of Oklahoma.


PRYOR,OK1486/1496 SOUTH ELLIOTTOVERVIEW

• Multi-Tenant Office Building

SIZE


TENANTS


• KeeWes

• Complete Home Health

• Michelle Hickox

SITE AREA

• 0.87 Acre Site

ZONING

• Office

CONSTRUCTION

• Brick Exterior

• Standing Seam Metal Roof/Gable

• Glass Storefront

• Non-Sprinklered

AGE

• 1979

FINISHES

• Carpet

• Drop Ceiling



• CMU Separation Walls


• Restroom - VCT (Vinyl Tile)

• Interior Above Ground Interior Therapy Pool - 20’x20’

PARKING

• 45 Concrete Parking Spaces

Floor Plan

Photo

Aerial


PRYOR

Pryor lies about 45 miles northeast of Tulsa along OK-20 and has a population of approximately 9,520. Pryor is home to MidAmerica Industrial Park where Google has a $600 million internet data center facility. The city is the seventh largest manufacturing center in the state and the main industries it serves are: machinery, metals, electronics and transportation equipment.


SKIATOOK,OK209 EAST ROGERS BOULEVARDOVERVIEW

• Historic Downtown 2 Story Building

• Mixed Use with Office, Retail and Apartment

SIZE


TENANTS

• Redbud Physial Therapy

• Vacant Retail

• Vacant Apartment

SITE AREA

• 0.18 Acre Site

ZONING

• High Density Commercial District (CH)

CONSTRUCTION

• Brick Veneer with Concrete Accents

• Built up Roof / Composition Shingle

• Unfinished Apartment Upstairs

AGE

• 1923

FINISHES

• Carpet



• Kitchen

• Restroom - VCT (Vinyl Tile)

• ADA Ramp

• HVAC RTU

PARKING


RETAIL UNIT

• Concrete Floor

• Brick

• Wood Deck

• Insulation - Painted

Floor Plan

Photo

Aerial


SKIATOOK

Skiatook lies about 20 miles north of Tulsa just east of US-75 and has a population of approximately 7,908. Skiatook is home to Skiatook Lake, a 10,500-acre man-made lake with 160 miles of shoreline. Skiatook serves primarily as a suburb of Tulsa.


WAGONER,OK817 WEST CHEROKEE STREETOVERVIEW

• Single Tenant Medical Office Building

SIZE


TENANT


SITE AREA

• 0.39 Acres

ZONING

• Commercial

CONSTRUCTION

• Metal with Brick Veneer Storefront

• Metal Roof

AGE

• 1986

FINISHES

• Carpet



• Interior Inground Therapy Pool - 30x30


• 2 ADA Restrooms - VCT (Vinyl Tile)

• Shower - Ceramic Tile

PARKING

• 16 Asphalt Parking Spaces

Floor Plan

Photo

Aerial


WAGONER

Wagoner lies about 40 miles southeast of Tulsa along OK-51 and directly east of Fort Gibson Lake. The city has an approximate population of 8,846. The completion of Fort Gibson Lake in 1950 stimulated the economy and turned Wagoner into a sports and retirement center. Wagoner primarily serves as a bedroom community to Tulsa and Muskogee.


GLENPOOL,OK500 EAST 141ST STREETOVERVIEW

• Single Tenant Medical Office Building

• Former Post Office

SIZE


TENANT


SITE AREA

• 0.80 Acre Site

ZONING

• General Commercial District (CG)

CONSTRUCTION

• Concrete Block with Brick Veneer

• Mansard Metal Vestibule

AGE

• 1982

FINISHES

• Carpet




• 2 Restrooms - VCT (Vinyl Tile)

• Interior Above Ground Therapy Pool - 20’x20’

PARKING


Floor Plan

Photo

Aerial


GLENPOOL

Glenpool lies about 15 miles south of Tulsa along US-75 and has a population of approximately 13,479. In 1905, oil was discovered in Glenpool and propelled Tulsa’s growth. Glenpool now serves primarily as a commuter town for Tulsa.

MARKET OVERVIEW

18 | REDBUD PHYSICAL THERAPY PORTFOLIO PLATT COLLEGE | 18

$14.36 PSFAVERAGE ASKING RATES

30,479,389 SF TOTAL OFFICE MARKET

POPULATION

419,4942017 POPULATION

CITY OF TULSA | MARKET OVERVIEW

OFFICE MARKET

Source: CBRE RESEARCH

48.9%MALE

51.1%FEMALE

36AVERAGE

AGE

20.8%BACHELORS

$44,101MEDIAN HH

INCOME

14.0%AVERAGE VACANCY


TULSA MARKET OVERVIEW

The Tulsa MSA comprises seven counties: Creek, Okmulgee, Osage, Pawnee, Rogers, Tulsa and Wagoner, whose aggregate population is estimated to be 961,561 or 25% of the population of the state of Oklahoma. The gross product or value of all goods and services produced in the seven-county MSA is estimated to be $42.6 billion (constant dollars in 2010), or 30.4% of the Oklahoma economy. Tulsa is centrally located in the United States and its transportation system makes it remarkably connected to the rest of the world. Some of the nation’s largest companies in key industry sectors including aerospace, energy, healthcare, technology, manufacturing and transportation make their home in Tulsa because of its location, pro-business environment and insulation from many effects of the recent national recession.

Tulsa’s major industries are aerospace, including aerospace manufacturing and aviation; healthcare; energy; machinery and electrical equipment manufacturing: transportation, distribution and logistics. With over 70 aerospace companies employing more than 14,000, Tulsa is considered a leader in the aerospace industry. The American Airlines Maintenance Repair and Overhaul Division has called Tulsa home for over 70 years and is Tulsa’s largest employer. American Airlines’ 3.3 million-square-foot Maintenance & Engineering Center is one of the largest of its kind in the world. Besides maintaining its own fleet, American solicits third-party aircraft maintenance and recently completed construction on a new $9.8 million, 81,400 square-foot, wide-body aircraft hangar at Tulsa International Airport. NORDAM is another large employer whose aerospace firm has been headquartered in Tulsa since 1969. This leader in aircraft component manufacturing and repair services clients worldwide with facilities also in Singapore and the United Kingdom.

Oil and gas exploration continues to be a major industry in Oklahoma as well. ONEOK, a Fortune 500 company headquartered in Tulsa, is a leader in gathering, processing, storage and transportation of natural gas in the U.S. They are also one of the nation’s largest distributors of natural gas serving more than two million customers in the Midwest. Highlights of recent growth in Tulsa/Northeast Oklahoma include the establishment of Word Industries and Borets-Weatherford’s North American headquarters, plus expansions of Midstates Petroleum, Baker Hughes and Cimarex. Other growing energy companies

include Williams, Helmerich & Payne, Samson Investment Co., ConocoPhillips and HollyFrontier Corporation. Examples of Tulsa’s growing alternative energy sector include Blue Energy Fuels, a designer/builder of CNG fueling stations. With over 400 large and small companies in the area these companies add an additional 10,000 plus jobs to the economy.

The region is home to headquartered companies and regional offices including ConocoPhillips, FlightSafety, QuikTrip Corporation, US Cellular, Verizon, The Bama Companies and Williams Companies. For the 12th straight year, convenience store giant QuikTrip once again captured a spot on Fortune magazine’s 2014 list of the “100 Best Companies to Work For.” QuikTrip employs nearly 12,000 people nationwide.

In addition, healthcare has become one of Tulsa’s major growth sectors with more than nine major medical facilities providing state-of-the-art services for northeast Oklahoma as well as portions of surrounding states. Tulsa is also home to two medical schools – The University of Oklahoma’s College of Medicine and The Oklahoma State University College of Osteopathic Medicine.

Tulsa’s affluent history gives the city a luxurious culture in the arts. From the downtown skyline rich in Art Deco buildings to the historic Philbrook Museum, Tulsa offers a wealth of beauty, culture and entertainment. Music lovers can enjoy a concert at the historical Cain’s ballroom or the newly built, award-winning, 565,000 square foot BOK Center, which has recently been noted as one of the top revenue producing arenas in the world.

The metropolitan area provides residents and visitors with one-of-a-kind shopping experiences. Its luxurious shopping centers and districts each offer unique experiences and wide varieties of retailers. For the sports enthusiast, Tulsa is home to multiple professional and semi-professional sporting franchises. Tulsa sports fans can enjoy a wide variety of sporting events all year long. Tulsa offers a big-city economic climate with the quality of life only a smaller community can provide. In addition, Tulsa’s workers benefit from the second shortest commute time in the nation with a cost of living 12% below the national average. There’s never been a better time to do business in Tulsa.


SIGNIFICANT TULSA EMPLOYERS

COMPANY # EMPLOYEES

Aaon 1,178

AEP/PSO 1,200

American Airlines Maint. Base 6,750

AT&T 2,600

Baker Hughes 1,738

Bank of Oklahoma 3,250

Blue Cross/Blue Shield 1,250

Broken Arrow Public Schools 2,500

City of Tulsa 4,200

DirecTV 1,500

Dollar Thrifty Automotive 1,000

Farmers Insurance Group 1,750

Girling Health Care Inc. 1,500

Hard Rock Hotel & Casino 1,000

Hillcrest Healthcare System 4,250

HP Enterprise Services 1,000

IBM 1,250

Jenks Public Schools 1,750

Mazzio’s 2,250

Nordam Group 1,437

ONEOK* 4,077

COMPANY # EMPLOYEES

OSU Medical Center 1,250

Owasso Public Schools 1,250

QuikTrip 1,500

Reasor’s 2,500

River Spirit Casino 1,000

Saint Francis Health System 5,500

Spirit AeroSystems 1,750

St. John Medical Center 6,250

State Farm 1,300

Triad Hospitals, SouthCrest 1,100

Tulsa Community College 2,500

Tulsa County 2,000

Tulsa Public Schools 6,250

U.S. Postal Service 9,000

Union Public Schools 2,250

University of Tulsa 1,200

WalMart/Sam’s Club 1,000

Warehouse Market 1,000

Warren Clinic 1,000

Whirlpool Corporation 1,100

Williams Companies 1,250

TULSA MARKET OVERVIEW


PO

PU

LAT

ION

2017 POPULATION - CURRENT YEAR ESTIMATE 419,494

2022 POPULATION - FIVE YEAR PROJECTION 440,480

2010 POPULATION - CENSUS 391,900

2000 POPULATION - CENSUS 392,752

2010-2017 ANNUAL POPULATION GROWTH RATE 0.94%

2017-2022 ANNUAL POPULATION GROWTH RATE 0.98%

HO

US

EH

OLD

S

2017 HOUSEHOLDS - CURRENT YEAR ESTIMATE 173,071

2022 HOUSEHOLDS - FIVE YEAR PROJECTION 180,971

2010 HOUSEHOLDS - CENSUS 163,973

2000 HOUSEHOLDS - CENSUS 165,667

2010-2017 ANNUAL HOUSEHOLD GROWTH RATE 0.75%

2017-2022 ANNUAL HOUSEHOLD GROWTH RATE 0.90%

2017 AVERAGE HOUSEHOLD SIZE 2.38

INC

OM

E

2017 AVERAGE HOUSEHOLD INCOME $69,784

2022 AVERAGE HOUSEHOLD INCOME $77,723

2017 MEDIAN HOUSEHOLD INCOME $44,101

2022 MEDIAN HOUSEHOLD INCOME $47,728

2017 PER CAPITA INCOME $29,214

2022 PER CAPITA INCOME $32,334

HO

US

ING

2017 HOUSING UNITS 194,568

2017 VACANT HOUSING UNITS 21,497

2017 OCCUPIED HOUSING UNITS 173,071

2017 OWNER OCCUPIED HOUSING UNITS 88,896

2017 RENTER OCCUPIED HOUSING UNITS 84,175

TULSA DEMOGRAPHICS


TULSA OFFICE MARKETVIEW

TULSA’S ECONOMY CONTINUES TO MAKE STRIDESUnemployment rates dropped to 4.6% in the first half of the year. The rates were pushed lower by employment gains in manufacturing and business/professional services. The rebound in manufacturing is expected to be bolstered by demand from aerospace and energy through the remainder of the year. Moody’s Analytics projects unemployment to reach 4.3% by year-end; if accurate, it will be the strongest rate since the pre-financial crash of 2008. Although gross metro product (GMP) is expected to face slight contraction in 2017 with a negatie 0.6% change year-over-year, forecasts indicate steady growth ahead from 2018-2022.

CONSTRUCTION HALTSFor the first time since H2 2012, there is no office building construction activity. Slowed development has helped keep the market on its feet while weathering the energy slump.

ENERGY FIRMS TIP SCALE TO THE REDThe CBD and South submarkets experienced an increase in vacancy in H1 2017, primarily due to the downsizing of energy firms. The CBD contributed the majority of negative net absorption with 104,234 sq. ft. returned to the market. Samson Resources relocated within the CBD to First Place Tower and reduced their footprint to 60,000 sq. ft., which is one third of their previously occupied space in Williams Center Tower II. The South submarket has also been impacted by the energy crunch with either space reductions or vacancies from Houston Interests, SEM Group, and Murphy Energy. However, even as oil and gas companies continue to be in flux, the expectation is that they have “right sized” and will not continue to oershadow the positive gross absorption Tulsa has experienced. As this happens, the momentum will shift back to the black.

115,584 SFNET ABSORPTION

14.0%VACANCY RATE

$14.36/SF AVGASKNG RATE

0 SFCONSTRUCTION

TULSA OFFICEHIGHLIGHTS


MARKETVIEW

Tailwinds approach as energy

firms keep a thumb on the scale

Tulsa Office, H1 2017

H1 2017 CBRE Research © 2017 CBRE, Inc. | 1

(115,584) SF 14.0% 0 SF$14.36 PSF

11.0

11.5

12.0

12.5

13.0

13.5

14.0

14.5

(150)

(100)

(50)

0

50

100

150

200

H1 2015 H2 2015 H1 2016 H2 2016 H1 2017

Vacancy Rate (%)Net Absorption (000s SF)

Net Absorption Vacancy Rate

Figure 1: Historical Net Absorption and Overall Vacancy

Source: CBRE Research, H1 2017.

*Arrows indicate trend from previous half-year.

TULSA’S ECONOMY CONTINUES TO MAKE STRIDES

CONSTRUCTION HALTS

ENERGY FIRMS TIP SCALE TO THE RED

MARKETVIEW

11.5

12.0

12.5

13.0

13.5

14.0

14.5

H1 20

15

H2 20

15

H1 20

16

H2 20

16

H1 20

17

(%)

H1 2017 CBRE Research © 2017 CBRE, Inc. | 2

TULSA OFFICE

0

10

20

30

40

50

60

70

H1 20

15

H2 20

15

H1 20

16

H2 20

16

H1 20

17

($) Millions

Figure 6: Historical Investment Sales Volume

Source: CBRE Research, Real Capital Analytics, H1 2017.

0

50

100

150

200

250

300

350

400

H1 20

15

H2 20

15

H1 20

16

H2 20

16

H1 20

17

(000s) SF

Figure 5: Historical Under Construction

Source: CBRE Research, H1 2017.

Figure 3: Historical Vacancy

Source: CBRE Research, Xceligent, H1 2017.

13.00

13.50

14.00

14.50

15.00

H1 20

15

H2 20

15

H1 20

16

H2 20

16

H1 20

17($) SF

Figure 4: Historical Asking Rates


Figure 2: Market Statistics


MarketH1 2017 Total

Leasable (SF)

H1 2017 Total Vacant

(SF)

H1 2017 Vacancy

(%)

H1 2017 Asking Rate Gross Avg. Annual

($/SF)

H1 2017 Net Absorption

(SF)

H1 2017 Under Construction

(SF)

CBD 11,112,397 1,488,587 13.4 14.41 (104,234) -

Uptown 1,368,879 35,593 2.6 16.52 11,937 -

Midtown 2,506,392 168,168 6.7 14.41 8,422 -

East 4,169,667 544,951 13.1 10.73 8,761 -

North 1,267,372 406,952 32.1 10.01 4,909 -

Southwest 572,009 39,259 6.9 17.82 0 -

South 9,482,673 1,588,233 16.7 15.94 (45,379) -

Total Market 30,479,389 4,271,743 14.0 14.36 (115,584) -

TULSA OFFICE MARKETVIEW CONTINUED

CA

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PREPARED BY

BOB PIELSTICKER, SIORFirst Vice President+1 918 392 [email protected]

MATT REESE, CCIMSenior Associate+1 918 392 [email protected]

JEFFREY METCALF, MBAAssociate+1 918 392 [email protected]

© 2017 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.

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