Research & Forecast Report AUSTIN | OFFICE Q4 2019

The decade ends with even more construction in Austin’s office market

Kaitlin Holm Research and Marketing Coordinator | Austin

Boots On The Ground Commentary by Ally Dorris Future Forecast

Our “Boots on the Ground” viewpoint is the voice of our experts, who While the loudest buzz is in downtown, Austin’s periphery is in the have broken down the market data and compared it to what they are growth path as well. Amazon has proposed an extraordinary 3.8 seeing for themselves. This is their take on what the numbers actually million square foot distribution center in Pflugerville. On top of that, mean for the Austin office market. an additional 120 acres is rezoned for a mixed-use development in Pflugerville, deemed NorthPointe. Williamson County’s popularity As anticipated, based on the last five years’ worth of quarterly has sky-rocketed thanks to new developments on the horizon reports, the Austin commercial market closed out the decade firing like the one billion dollar Apple campus. According to the Texas on all cylinders. Q4 of 2019 was the cherry on top of another year Demographic Center, the population of the North Austin/Round of growth and development in the Texas capitol city. As venture Rock metro will top 1.6 million by 2050, which would quadruple the capital funding hit a record high of $2.2 billion, construction number at the start of the decade, which was 422,679. continues and more cranes pop up all over the city, there is no sign of slowing down in this tech hub as we enter into the new age- 20’s. By The Numbers - Austin’s Office Market

This last quarter unveiled a lot of what is to come in the next cycle TOTAL INVENTORY TOTAL VACANCY of developments, especially in downtown. Avid, local developer, Endeavor, acquired more prominent land near the CBD that is ripe 59.3M SF 11.9% for redevelopment. Purchases include a high-profile retail center at 6th Street and Lamar Boulevard that houses the well-known Q4 NET ABSORPTION YTD NET ABSORPTION record store, Waterloo Records and one of ELM Restaurant Group’s popular eateries, 24 Diner, also included is the land that sits under -315,567 SF -595,543 SF Aussie’s and Zax Restaurant, both of which are in the heart of TOTAL UNDER the South Central Waterfront. Cielo also made another splash in TOTAL PRE-LEASED CONSTRUCTION Austin’s development pool with the purchase of a 0.81-acre tract 2.38M SF at 5th and Brazos. The tract, improved with 39 condominium units, 7.15M SF was reportedly purchased for $55,000,000. Cielo’s press release AVERAGE CBD CLASS A indicated it could be built up to about 885,000 square feet. SUBURBAN CLASS A RATE/SF $60.61 As the acquisitions of Austin’s limited land continues, construction $35.84 as tracked by Colliers $38.10 marches on with more ground breaking ceremonies taking place, Rates inclusive of estimated operating expenses. Average rates include including 701 Rio, the 120,000 SF office building that sits one block sublease rates, which are much lower than direct rates. from the West 6th Entertainment District, as well as Aquila’s new east side project known as Eastlake at Tillery. Construction also began on the University of Texas’s highly anticipated Moody Center, a 10,000-seat arena which will be the new home for Longhorn basketball games and other major events. Austin Office Overview

In the fourth quarter of 2019, Austin’s office market reported ANNUAL ABSORPTION, NEW SUPPLY, AND VACANCY 315,567 SF of negative net absorption. A large amount of the negative absorption occurred in Class B buildings with a total Net Absorption New Supply Vacancy 1,200,000 16.0 of 229,982 SF of negative net absorption. Class A buildings in Austin posted 59,537 SF of negative net absorption, while Class C 1,000,000 14.0 properties recorded 26,048 SF of negative net absorption. 800,000 12.0 600,000 10.0 Currently, 7,159,195 SF of office space is under construction and 400,000 8.0 2,386,911 SF of that is pre-leased. The first quarter of 2020 is 200,000 6.0 expected to record 2,155,243 SF of deliveries and 1,248,873 SF of that is pre-leased. One of the buildings set to deliver in the first 0 4.0 quarter of 2020 is Domain 10. The entire 299,673 SF building is -200,000 2.0 100% leased with Amazon taking at least 252,267 SF. -400,000 0.0

Rollingwood Town Center III in the Southwest submarket was the largest building to deliver in the fourth quarter. This 128,000 SF building delivered in December and is 100% leased. One of the tenants that pre-leased at the newest Rollingwood building is Greystar, leasing 18,328 SF. The first quarter of 2020 is expected to see sixteen new buildings come online. Market Indicators Annual Quarterly Quarterly The citywide average rental rate increased over the quarter from Relative to prior period Change Change Forecast* $35.51 per SF in Q3 2019 to $35.84 per SF in Q4 2019. Class A VACANCY rental rates in Austin’s CBD increased by 7.8% over the quarter to $53.33 per SF up from $49.47 per SF in the third quarter of NET ABSORPTION 2019. The overall suburban Class A rental rate also increased, from NEW CONSTRUCTION $37.83 per SF to $38.10 per SF, over the quarter. UNDER CONSTRUCTION In December, CompTIA announced that Austin has been ranked the number one Tech Town, moving up from number three in 2018. *Projected CompTIA’s index looks at tech job postings, wages, cost of living, projected job growth, etc to create the ranking. The report stated, “Austin’s reputation for ‘weirdness’ is among the many reasons newbie tech companies are choosing it as their home base, with the Summary Statistics hope that the city’s progressive culture and out-of-the-box thinking Austin Office Market Q4 2018 Q3 2019 Q4 2019 will inspire innovation”. Austin ranked first in front of Raleigh (NC), Vacancy Rate 9.9% 11.2% 11.9% San Jose (CA), Seattle (WA) and San Francisco (CA). Net Absorption .642 -.989 -.315 Vacancy & Availability (Million Square Feet) New Construction Austin’s citywide vacancy rate increased from 11.2% in the third (Million Square Feet) 1.45 .781 1.88 quarter of 2019 to 11.9% in the fourth quarter of 2019. The North/ Under Construction Domain submarket’s Class C vacancy rate had the largest jump in (Million Square Feet) 4.26 5.74 7.15 vacancy moving from 0% in Q3 2019 to 34.3% in Q4 2019. This was caused entirely by 15,363 SF being vacated at the Epoch Class A Vacancy Rate CBD 5.9% 6.2% 7.1% Building (2404 Rutland Drive). Suburban 11.2% 14.9% 15.3% The largest decline in vacancy happened in the Class B Far Gross Asking Rents Northeast submarket, where the rate decreased from 22.5% to Per Square Foot Per Year 15.7%, which is due to 23,770 SF at Tower of the Hills (13809 Average $35.98 $35.51 $35.84 Research Boulevard) being taken off the market. CBD Class A $51.85 $49.47 $53.33 Overall suburban vacancy increased quarter over quarter from Suburban Class A $37.91 $37.83 $38.10 12.5% in Q3 2019 to 13.2% in Q4 2019, and the CBD’s vacancy rate also rose over the quarter from 5.9% to 6.8%.

2 Austin Research & Forecast Report | Q4 2019 | Office | Colliers International .

QUARTERLY ABSORPTION, NEW SUPPLY, AND VACANCY Job Growth & Unemployment Net Absorption New Supply Vacancy (not seasonally adjusted) 1,200,000 14.0% UNEMPLOYMENT 12/18 12/19 1,000,000 12.0%

800,000 10.0% AUSTIN 2.7% 2.4% 600,000 8.0% TEXAS 3.6% 3.3% 400,000 6.0% 3.7% 3.4% 200,000 U.S. 4.0% 0

-200,000 2.0% Annual # of Jobs JOB GROWTH Change Added -400,000 0.0% AUSTIN 3.5% 38K

Absorption & Demand TEXAS 2.7% 344K

Austin’s office market posted 315,567 SF of negative netabsorption U.S. 1.4% 2.1M in Q4 2019. Only five submarkets experienced positive absorption over the quarter, including Central, East, Far Northeast, South and Southwest. CBD vs. Suburban A large amount of the negative net absorption over the quarter occurred in the Class A Northwest submarket, totaling 454,460 CLASS A OFFICE VACANCY SF of negative absorption. In December, Nokia put 39,117 SF of 18.0% it’s space at Cisco Systems Office Park (12515 Research Blvd) 16.0% on the market for sublease. An additional 22,292 SF was put on the sublease market at Stonebridge Plaza I (9606 N MoPac 14.0% Expressway. In all, 249,699 SF became available in the Class A 12.0% Northwest submarket. 10.0% The Southwest submarket helped bring the absorption number 8.0% closer to zero with 129,470 SF of positive net absorption. The 6.0% majority of the absorption in the Southwest submarket happened 4.0% in Class A space and can be partially attributed to Advanced Micro Devices moving into its 25,938 SF space at 7171 Southwest 2.0% Parkway (Building 3). 0.0%

The Austin market recorded thirty-seven leases over 10,000 SF each in the fourth quarter with a large renewal leading the way. CBD Vacancy Suburban Vacancy Farm Credit Bank of Texas signed a renewal for their 103,453 SF space at the Plaza on the Lake II (4801 Plaza on the Lake CLASS A OFFICE RENTS Drive), while the State of Texas inked a new deal for 48,079 SF in Promontory Point B (2420 Ridgepoint Drive). $50.00

Rental Rates $40.00

According to CoStar, our data provider, Austin’s citywide average $30.00 rental rate increased 0.93% over the quarter from $35.51 per SF to

$35.84 per SF. $20.00 The highest rental rates across the Austin office market in the fourth quarter were in CBD Class A buildings where net rental rates $10.00 average $53.33 per SF. Rental rates were also high in the South submarket where Class A rental rates reached $46.17 per SF. $0.00

Citywide Class B rental rates rose marginally in Q4 2019 to $32.09 per SF from $31.30 per SF in Q3 2019. CBD Class B rental rates CBD Rents Suburban Rents increased by 2.6% over the quarter from $49.33 per SF to $50.61 per SF in Q4 2019.

3 Austin Research & Forecast Report | Q4 2019 | Office | Colliers International Leasing Activity

Austin’s office market recorded 836,056 SF of leasing activity in Q4 2019. Major transactions this quarter included Farm Credit Bank of Texas’s lease renewal for 103,453 SF at 4801 Plaza on the Lake Drive and the State of Texas leasing 48,079 SF at Promintory Point B (2420 Ridgepoint Drive).

Q4 2019 Top Office Lease Transactions BUILDING ADDRESS SUBMARKET SF LEASE DATE 4801 Plaza On The Lake Dr1 Southwest 103,453 Oct-19 2500 Bee Caves Rd Southwest 62,079 Nov-19 12301 Research Blvd2 Northwest 49,312 Dec-19 2420 Ridgepoint Dr Northeast 48,079 Nov-19 2500 Ridgepoint Dr2 Northeast 46,893 Nov-19 13620 Briarwick Dr Far Northwest 44,634 Dec-19 13609 N IH-35 Northeast 35,000 Oct-19 1600 E 4th St East 33,291 Nov-19 10801 N MoPac Expy North/Domain 29,220 Dec-19 1221 S Congress Ave South 26,951 Nov-19 7600 Capital Of Texas Hwy N Northwest 23,262 Nov-19 8310 N Capital Of Texas Hwy Northwest 19,832 Oct-19 2525 Brockton Dr North/Domain 19,163 Dec-19 1009 S Congress Ave South 18,903 Oct-19 300 W 6th St CBD 17,738 Nov-19 9430 Research Blvd Northwest 16,607 Oct-19 303 Colorado St CBD 14,700 Dec-19 1250 S Capital Of Texas Hwy Southwest 14,450 Dec-19 515 Congress Ave CBD 13,989 Oct-19 201 W 5th St2 CBD 12,421 Nov-19 9600 N MoPac Expy Northwest 11,938 Oct-19 3305 Steck Ave Central 11,764 Oct-19 1 Renewal 2 Sublease

Sales Activity

Austin’s office investment sales activity in Q4 consisted of three building transactions, including one portfolio transaction. In October, CIM Group purchased 618 Tillery Street, along with two other creative office buildings in the East submarket, from Peter Barlin. 618 Tillery Street was the largest building in the portfolio at 187,155 SF. In November, Karlin Real Estate purchased 712 Huntland Drive East for $14,000,000, or $134.86 per SF. Karlin Real Estate purchased the 103,808 SF building from Southwestern Bell Telecommunications, Inc.

Q4 2019 Significant Sales Transactions – (100,000 SF or greater)

BUILDING ADDRESS SUBMARKET RBA (SF) YEAR BUILT BUYER SELLER SALE PRICE $/SF CLOSED

618 Tillery St 1 East 187,155 1973 CIM Group LP Peter E Barlin Undisclosed N/A Oct-19

Southwestern Bell 712 Huntland Dr E Central 103,808 1972 Karlin Real Estate Telecommunications, $14,000,000 $134.86 Nov-19 Inc OP 8200 Mopac 8200 N Mopac Expy Northwest 133,568 1981 David M Nordeen Undisclosed N/A Dec-19 Property LLC Sources: CoStar and Real Capital Analytics 1 Part of a portfolio

4 Austin Research & Forecast Report | Q4 2019 | Office | Colliers International AustinThis is placeholder Office text.Market Place Summary your text here.(CBD, Suburban, & Overall)

SUBLEASE NET ABSORPTION RENTAL INVENTORY DIRECT VACANCY VACANCY VACANCY RATE (%) VACANCY (SF) RATE

# OF RATE RATE TOTAL AVG ($/ CLASS TOTAL (SF) (SF) (SF) Q4-2019 Q3-2019 Q4-2019 Q3-2019 BLDGS (%) (%) (SF) SF) CBD A 32 8,150,669 400,887 4.9% 178,632 2.2% 579,519 7.1% 6.2% -72,128 -23,792 $53.33 B 34 2,703,609 160,968 6.0% 24,591 0.9% 185,559 6.9% 5.9% -25,266 -10,714 $50.61 C 10 631,980 10,555 1.7% 4,537 0.7% 15,092 2.4% 1.5% -5,390 18,596 $25.35 Total 76 11,486,258 572,410 5.0% 207,760 1.8% 780,170 6.8% 5.9% -102,784 -15,910 $51.58 SUBURBAN A 206 23,685,397 3,232,679 13.6% 382,573 1.6% 3,615,252 15.3% 14.9% 12,591 -1,120,479 $38.10 B 415 21,560,352 2,120,286 9.8% 355,573 1.6% 2,475,859 11.5% 10.5% -204,716 151,139 $30.54 C 60 2,574,708 209,895 8.2% 2,100 0.1% 211,995 8.2% 7.4% -20,658 -4,580 $26.66 Total 681 47,820,457 5,562,860 11.6% 740,246 1.5% 6,303,106 13.2% 12.5% -212,783 -973,920 $34.15 OVERALL A 238 31,836,066 3,633,566 11.4% 561,205 1.8% 4,194,771 13.2% 12.6% -59,537 -1,144,271 $39.88 B 449 24,263,961 2,281,254 9.4% 380,164 1.6% 2,661,418 11.0% 10.0% -229,982 140,425 $32.09 C 70 3,206,688 220,450 6.9% 6,637 0.2% 227,087 7.1% 6.3% -26,048 14,016 $26.58 Total 757 59,306,715 6,135,270 10.3% 948,006 1.6% 7,083,276 11.9% 11.2% -315,567 -989,830 $35.84

Austin Suburban Office Market Summary

DIRECT SUBLEASE RENTAL INVENTORY VACANCY VACANCY RATE (%) NET ABSORPTION (SF) VACANCY VACANCY RATE

# OF RATE RATE TOTAL AVG ($/ CLASS TOTAL (SF) (SF) (SF) Q4-2019 Q3-2019 Q4-2019 Q3-2019 BLDGS (%) (%) (SF) SF) CEDAR PARK

A 6 555,222 69,515 12.5% 5,000 0.9% 74,515 13.4% 12.5% -5,000 0 $29.98 B 8 348,822 18,625 5.3% 9,405 2.7% 28,030 8.0% 8.6% 1,938 36 $27.11 ChartTotal Title–One14 Line 904,044 88,140 9.7% 14,405 1.6% 102,545 11.3% 11.0% -3,062 36 $27.82 CENTRAL . Chart Title A 6 640,288 21,805 3.4% 37,960 5.9% 59,765 9.3% 6.4% -18,644 -4,188 $42.21 B SUBHEAD41 1 2,198,429 206,902 9.4%SUBHEAD 1 0 0.0% 206,902 SUBHEAD9.4% 1 11.5% 45,224 SUBHEAD-14,885 1 $32.12 CBody 13 737,133 19,332 2.6% 900 0.1% 20,232 2.7% 2.8% 228 -6,071 $23.52 Total 60 3,575,850 248,039 6.9% 38,860 1.1% 286,899 8.0% 8.8% 26,808 -25,144 $32.23 EAST A 6 431,301 9,875 2.3% 0 0.0% 9,875 2.3% 6.4% 17,933 96,865 $41.69 B 16 902,658 59,184 6.6% 4,960 0.5% 64,144 7.1% 8.4% 11,801 6,281 $40.47 C 7 271,235 11,924 4.4% 1,200 0.4% 13,124 4.8% 7.4% 7,057 -6,118 $36.35 Total 29 1,605,194 80,983 5.0% 6,160 0.4% 87,143 5.4% 7.7% 36,791 97,028 $38.64 FAR NORTHEAST B 3 94,996 14,923 15.7% 0 0.0% 14,923 15.7% 22.5% 6,473 -2,666 $27.38 Total 3 94,996 14,923 15.7% 0 0.0% 14,923 15.7% 22.5% 6,473 -2,666 $27.38 FAR NORTHWEST A 13 1,889,243 270,898 14.3% 27,900 1.5% 298,798 15.8% 13.7% -40,240 15,969 $33.61 B 13 1,242,501 36,551 2.9% 55,291 4.4% 91,842 7.4% 5.0% -30,174 3,506 $27.19 C 2 77,864 1,180 1.5% 0 0.0% 1,180 1.5% 1.5% 0 0 $22.48 Total 28 3,209,608 308,629 9.6% 83,191 2.6% 391,820 12.2% 10.0% -70,414 19,475 $32.54

5 Austin Research & Forecast Report | Q4 2019 | Office | Colliers International Austin Suburban Office Market Summary - Continued

SUBLEASE NET ABSORPTION RENTAL INVENTORY DIRECT VACANCY VACANCY VACANCY RATE (%) VACANCY (SF) RATE

# OF RATE RATE TOTAL AVG ($/ CLASS TOTAL (SF) (SF) (SF) Q4-2019 Q3-2019 Q4-2019 Q3-2019 BLDGS (%) (%) (SF) SF) NORTH/DOMAIN A 18 2,697,190 88,754 3.3% 1,927 0.1% 90,681 3.4% 4.0% 18,338 -43,953 $39.23 B 46 2,530,745 296,335 11.7% 20,363 0.8% 316,698 12.5% 11.9% -16,597 22,250 $28.36 C 2 44,759 15,363 34.3% 0 0.0% 15,363 34.3% 0.0% -15,363 0 $27.98 Total 66 5,272,694 400,452 7.6% 22,290 0.4% 422,742 8.0% 7.8% -13,622 -21,703 $33.55 NORTHEAST A 4 353,065 30,993 8.8% 47,090 13.3% 78,083 22.1% 0.7% -75,564 2,710 $24.07 B 20 1,296,663 122,344 9.4% 174,535 13.5% 296,879 22.9% 23.1% 3,112 68,130 $22.63 C 6 226,421 78,799 34.8% 0 0.0% 78,799 34.8% 34.8% 0 0 $22.70 Total 30 1,876,149 232,136 12.4% 221,625 11.8% 453,761 24.2% 20.3% -72,452 70,840 $22.78 NORTHWEST A 71 7,895,277 1,949,188 24.7% 130,608 1.7% 2,079,796 26.3% 25.8% -45,460 -1,197,860 $37.87 B 111 5,027,676 588,883 11.7% 48,638 1.0% 637,521 12.7% 10.8% -95,094 90,614 $31.66 C 5 115,405 2,976 2.6% 0 0.0% 2,976 2.6% 2.1% -516 3,642 $28.33 Total 187 13,038,358 2,541,047 19.5% 179,246 1.4% 2,720,293 20.9% 19.8% -141,070 -1,103,604 $34.72 ROUND ROCK A 10 886,438 124,376 14.0% 7,597 0.9% 131,973 14.9% 17.2% 20,346 -975 $33.13 B 20 827,829 83,016 10.0% 9,855 1.2% 92,871 11.2% 7.4% -31,640 -9,414 $26.18 C 6 219,274 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 $24.00 Total 36 1,933,541 207,392 10.7% 17,452 0.9% 224,844 11.6% 11.0% -11,294 -10,389 $30.95 SOUTH A 6 485,993 5,764 1.2% 0 0.0% 5,764 1.2% 1.0% -1,069 14,057 $46.17 B 29 1,352,772 57,473 4.2% 0 0.0% 57,473 4.2% 5.1% 11,997 -266 $32.58 C 10 554,985 19,570 3.5% 0 0.0% 19,570 3.5% 2.3% -6,541 3,339 $27.30 Total 45 2,393,750 82,807 3.5% 0 0.0% 82,807 3.5% 3.6% 4,387 17,130 $36.74 SOUTHEAST A 4 623,789 181,895 29.2% 0 0.0% 181,895 29.2% 31.6% 15,156 -40,000 $31.05 B 20 2,141,486 360,088 16.8% 0 0.0% 360,088 16.8% 12.0% -102,462 -7,236 $26.39 C 5 184,362 49,914 27.1% 0 0.0% 49,914 27.1% 24.1% -5,523 511 $28.74 Total 29 2,949,637 591,897 20.1% 0 0.0% 591,897 20.1% 16.9% -92,829 -46,725 $29.90 SOUTHWEST A 57 6,637,141 450,528 6.8% 89,379 1.3% 539,907 8.1% 8.4% 133,330 66,876 $42.74 B 79 3,040,849 236,848 7.8% 32,526 1.1% 269,374 8.9% 8.7% -3,860 -4,063 $33.73 C 3 93,138 6,278 6.7% 0 0.0% 6,278 6.7% 6.7% 0 0 $30.36 Total 139 9,771,128 693,654 7.1% 121,905 1.2% 815,559 8.3% 8.5% 129,470 62,813 $39.72 WEST CENTRAL A 5 590,450 29,088 4.9% 35,112 5.9% 64,200 10.9% 9.8% -6,535 -29,980 $43.91 B 9 554,926 39,114 7.0% 0 0.0% 39,114 7.0% 6.1% -5,434 -1,148 $37.34 C 1 50,132 4,559 9.1% 0 0.0% 4,559 9.1% 9.1% 0 117 - Total 15 1,195,508 72,761 6.1% 35,112 2.9% 107,873 9.0% 8.0% -11,969 -31,011 $38.78

6 Austin Research & Forecast Report | Q4 2019 | Office | Colliers International Office Development Pipeline

7,159,195 SF of office space was under construction during Q4 2019. Eight buildings delivered in Q4, with the largest being Rollingwood Town Center III. This 128,000 SF building was 100% leased at delivery and two floors, approximately 50,000 square feet, will be occupied by Gartner. 33% of all space under construction is already pre-leased and over 2,000,000 SF is set to deliver in Q1 2020.

PRE- EST. BUILDING NAME ADDRESS SUBMARKET SF DEVELOPER LEASED DELIVERY Offices At Saltillo 901 E 5th St East 150,000 100.0% Endeavor Real Estate Group Jan-20 Building 3 1009 S Congress Ave South 30,468 100.0% Endeavor Real Estate Group Jan-20 Domain 12 11800 Alterra Pky North/Domain 320,102 100.0% TIER REIT, Inc. Jan-20 Junior League of Austin 5334 Bluffstone Ln Northwest 48,000 100.0% Unknown Jan-20 Domain 10 11815 Alterra Pky North/Domain 299,673 100.0% Endeavor Real Estate Group Jan-20 Parmer 4.1 Parmer 4.1 Northeast 196,000 3.6% Trammell Crow Company Jan-20 618 Tillery St 618 Tillery St East 187,155 0.7% Unknown Jan-20 The Grove - Block 1 4301 Bull Creek Rd West Central 134,114 0.0% Castletop Capital Jan-20 Parmer Sector 4.2 Parmer 4.2 Northeast 118,000 4.5% Trammell Crow Company Jan-20 Domain W4 11600 Rock Rose Ave North/Domain 16,327 65.0% Endeavor Real Estate Group Jan-20 Highland 3 523 E Highland Blvd Central 250,000 100.0% Unknown Feb-20 Paloma Ridge Building C 13620 Ranch Road 620 N Far Northwest 165,714 16.5% Unknown Feb-20 The Grove - Block 2 2117 Perseverance Dr West Central 134,114 65.0% Castletop Capital Feb-20 WestPark Professional Building 2 120 S Lakeline Blvd Cedar Park 10,902 0.0% Unknown Feb-20 1141 Shady Ln 1141 Shady Ln East 64,674 18.2% Bercy Chen Studio LP Mar-20 10029 Manchaca Rd 10029 Manchaca Rd South 30,000 0.0% Unknown Mar-20 Highland 2 523 E Highland Blvd Central 300,000 1.3% Redleaf Properties, LLC Apr-20 Penn Field - Building E 3601 S Congress Ave South 42,500 0.0% Unknown Apr-20 Building 3 9225 Bee Caves Rd Southwest 30,077 100.0% Unknown Apr-20 WestPark Professional- Building 4 120 S Lakeline Blvd Cedar Park 11,182 0.0% Unknown Apr-20 WestPark Professional Building 3 120 S Lakeline Blvd Cedar Park 11,182 0.0% Unknown Apr-20 Creekside at the Hills 4609 Bee Caves Rd Southwest 31,460 58.5% Bogle Family Realty LLLP May-20 Building III 7717 Southwest Pky Southwest 20,858 59.3% Unknown May-20 Bouldin Creek 2043 S Lamar Blvd South 161,310 11.7% Unknown Jun-20 Foundry II 1600 E 4th St East 161,436 23.7% Cielo Property Group Jul-20 Seven Oaks East 8701 FM 2244 Southwest 153,405 0.0% Unknown Jul-20 1221 S Congress Ave 1221 S Congress Ave South 103,000 47.0% Endeavor Real Estate Group Aug-20 1306 W Oltorf St 1306 W Oltorf St South 18,835 29.4% Unknown Aug-20 1306 W Oltorf St 1306 W Oltorf St South 18,807 26.6% Unknown Aug-20 1205 Nueces at Capitol West 1205 Nueces St CBD 11,297 0.0% Texas Association Of Counties Sep-20 405 Colorado 405 Colorado St CBD 197,056 38.3% Brandywine Realty Trust Oct-20 826 Houston St 826 Houston St Central 22,909 0.0% Central Austin Management Group Oct-20 The Overlook at Lakeway 2909 Flintrock Trce Southwest 42,404 3.2% Unknown Nov-20 1320 Arrow Point Dr 1320 Arrow Point Dr Cedar Park 15,300 0.0% Unknown Dec-20 The Quincy 93 Red River St CBD 103,948 25.2% Endeavor Real Estate Group Dec-20 Building 2 3212 E Cesar Chavez St East 96,467 0.0% Cypress Real Estate Advisors, Inc. Dec-20 Building 1 3212 E Cesar Chavez St East 75,956 0.0% Cypress Real Estate Advisors, Inc. Dec-20 1320 Arrow Point Dr 1320 Arrow Point Dr Cedar Park 15,300 0.0% Unknown Dec-20 300 Colorado St 300 Colorado St CBD 357,000 87.6% Cousins Properties Incorporated Jan-21 Saint Elmo Plaza 4223 S Congress Ave South 105,000 4.8% Maker Bros Jan-21 1204 San Antonio at Capitol West 1204 San Antonio St CBD 41,698 0.0% Unknown Jan-21

7 Austin Research & Forecast Report | Q4 2019 | Office | Colliers International QUOTED GROSS RENTAL RATES FOR EXISTING TOP PERFORMING OFFICE BUILDINGS YEAR % AVAIL. RENT BUILDING NAME ADDRESS SUBMARKET RBA (SF) OWNER BUILT LEASED SF ($/SF) Frost Bank Tower 401 Congress Ave CBD 546,000 2003 98.87 46,061 $70.62 CalSTRS 7700 Parmer B 7700 W Parmer Ln Far Northwest 335,138 1999 98.40 5,373 $43.10 Accesso Partners One Eleven Congress 111 Congress Ave CBD 518,385 1985 97.80 109,016 $69.19 Cousins Properties Incorporated Chase Tower 221 W 6th St CBD 389,503 1974 96.96 11,858 $67.51 CIM Group LP Four Barton Skyway 1301 S Mo Pac Expy S Southwest 222,580 2001 96.90 22,751 $51.37 Brandywine Realty Trust Austin Centre 701 Brazos St CBD 326,335 1986 96.74 14,363 $59.41 Sidra Real Estate, Inc. 7700 Parmer C 7700 W Parmer Ln Far Northwest 300,274 1999 96.64 10,101 $42.98 Accesso Partners San Jacinto Center 98 San Jacinto Blvd CBD 410,248 1987 96.39 92,044 $68.61 Cousins Properties Incorporated University of Texas System 210 W 7th St CBD 342,000 2017 95.40 15,715 $60.48 Board of Regents of The University of Texas System University Park 3300 N Interstate 35 Central 206,657 2009 94.68 39,967 $45.17 Hermes Real Estate Investment Management Ltd Note: Avail. SF includes direct and sublet space as well as any future available space listed. Source: CoStar Property

Q4 2019 Austin Office Highlights

FOR MORE INFORMATION Kaitlin Holm Research and Marketing Coordinator | Austin +1 512 539 3021 [email protected]

Colliers International | Market Colliers000 Address, International Suite # | Austin 111000 Congress Address, Avenue, Suite # Suite 750 +1 000 000 0000 Copyright © 20152020 ColliersColliers International.International. Austin, Texas 78701 The information contained herein has been obtained from sources deemed reliable. While +1colliers.com/<> 512 539 3000 every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No colliers.com/austin responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional8 advisorsNorth priorAmerican to acting onResearch any of the material & Forecast contained Report in this report. | Q4 2014 | Office Market Outlook | Colliers International ADVANTAGE HOSP ELS & ITALITY HOT SE RV ICE Colliers International (NASDAQ, TSX: CIGI) is a leading global real estate services RE S A IONING REA C OSIT L ES Y P G IN TAT H RT ETIN VEST E I T PE ARK ME N and investment management company. With operations in 68 countries, our 14,000 L RO M NT D A P & U E S H T enterprising people work collaboratively to provide expert advice and services to R I E V A T A A S A L L S R N U O D A maximize the value of property for real estate occupiers, owners and investors. For R O I V T P T I S IO E R U O O L N T R C O & S Y L N more than 20 years, our experienced leadership team, owning more than 40% of our A E N C D

A equity, have delivered industry-leading investment returns for shareholders. In 2018, T

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A Colliers professionals think dierently, share great ideas and oer thoughtful and & I C M & E E C U H N P innovative advice to accelerate the success of its clients. Colliers has been ranked R C E S L M E R G I T A A A E L N L I S L F A E E E G S T among the top 100 global outsourcing rms by the International Association of A R T N E A T I M M T E L E E K N I I N R IO L T A T A Y A T Outsourcing Professionals for 13 consecutive years, more than any other real estate M C S O E E L R R V L services rm. Colliers is ranked the number one property manager in the world by R AN T N IC EP DLO NAN IO E RES RD TE TAT E S ENT SEN IC ATION REPRE F Commercial Property Executive for two years in a row. OF M A RIN SE A, L OUR EISURE & GOLF C COMMERCIAL REAL ESTATE SECTORS REPRESENTED L E Y Our philosophy I C A I TE L AN D T F

O revolves around the fact L E F TRIA L AMI L H R F S O I THCAR E T L that the best $127B TRANSACTION VALUE A E IND U MU L H possible results come from linking our global enterprise with local advisors who 2B understand your SF UNDER MANAGEMENT business, your market, and how to integrate real estate $3.3B into a successful IN REVENUE business strategy.

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17,300 PROFESSIONALS

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COLLIERS INTERNATIONAL GLOB AL LOCATIONS 68 COUNTRIES