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AMARILLO, TEXAS
RETAIL MARKET SURVEY
JANUARY, 2011

Introduction:
This is the twenty-fifth annual survey of multiple-tenant retail properties 10,000 square feet or larger conducted by Coldwell Banker Commercial First Equity, Realtors. This survey is for use by real estate professionals including brokers, appraisers, lenders, property managers, property owners, and investors in their evaluation of the Amarillo retail market. It is not intended for consumer use and, therefore, contains no consumer-related disclosures and/or disclaimers. Careful attention has been paid to methods of collection and verification of the data contained in this survey and the comments and conclusions drawn thereon. However, Justin Kite, and Coldwell Banker Commercial First Equity, Realtors makes no representations and/or warranties with respect to the data, comments, or projections contained in the survey. All of the data collected for this survey is subject to change without notice.

Scope:
The survey was conducted during December 2010 and January 2011. Justin Kite, retail specialist, with Coldwell Banker Commercial First Equity, Realtors contacted owners, leasing agents, and property management companies directly, in person or by telephone. All of the properties were personally inspected in order to verify occupancy. Qualifications for inclusion in the survey were considered during 2010 and it was decided that properties occupied with greater than 50% non-retail tenants would be excluded from the survey. This adjustment results in a decrease of 389,092 square feet of total retail square footage in Amarillo as compared to the 2010 Retail Market Survey. In light of the above mentioned inventory adjustment to the survey, occupancy calculations were made with the previous year’s inventory as well as with the adjusted inventory, and the results were nearly identical, thus preserving a basis of comparison with prior surveys.

Findings: Occupancy
The overall retail occupancy rate in Amarillo increased from 92% to a 93%, recovering half of its 2% drop in 2010. The total vacant square footage totals 311,067 at the beginning of 2011. Vacant square footage fell market-wide based on both adjusted and non-adjusted inventories. Vacant space in Open Air Centers totaled 265,002 square feet and only 46,065 square feet of vacancies were reported by the two mall properties. Total vacant square footage in the retail market is very near its 2006 low.

Findings: Rental Rates
Because of the diversity of condition, age, location, and management of the retail property inventory, it is difficult to quantify a precise percentage of change in retail rental rates. With the slight uptick in occupancies, rental rates remained at 2010 levels for the most part. Out of 43 total retail shopping centers surveyed, eight (8) reported slight rate increases and two (2) reported slight decreases.

2011 Outlook:
As we enter 2011, national and regional tenants are expressing interest in the Amarillo market. Most of the interest is limited to fast food and fast casual restaurant tenants. However, early-stage “big box” activity is another positive sign for recovery and momentum in the Amarillo retail market. Additionally, there is renewed interest from local tenants, both new start-ups and second locations.

Finally, regional and national interest in surrounding communities is surfacing, namely, Borger, Dumas, and Hereford.
Overall, the 2011 retail market is off to a good start with steady interest from a variety of tenants. The first half of 2010 retail sales tax collections were up 5.76%. Second half numbers are not available at this writing, but are also expected to exceed the second half of 2009, providing encouragement for local retailers and landlords.

Summary

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