REAL ESTATE OUTLOOK AUSTIN OFFICE MARKET WATCH JUNE 2017

Recent Office Leases OFFICE LEASE STATISTICS :: VACANCY & RENTAL RATE

25.0% $36.00  Northwest :: Hays Software (renew) 25.0% GROSS RENT PSF ($) VACANCY (%) $36.00 11,110 SF at Riata Gateway 20.0%20.0% $32.00$32.00

 Northwest :: Fathom Water Mgmt (subls) 15.0%15.0% $28.00 14,053 SF at Riata Corporate Park 7 $28.00

10.0%10.0%

 CBD :: Dykema Gosset $24.00 5.0% $24.00 10,891 SF at One Eleven Congress 5.0%

0.0% $20.00 0.0% QTD $20.00 10 11 12 13 14 15 16 17  Central :: Cobb Fendley & Assoc. 16,444 SF at Centennial Towers All office buildings larger than 25,000 SF excluding government, medical, user campuses and office condos.

Office Sales Statistics Recent Office Sales AUSTIN AUSTIN U.S. TRAILING AUSTIN QUARTER TRAILING U.S. 12 MO. Q1 2017 TO DATE 12 MO. Q1 2017  Southwest :: Capital Ridge 320 S. Capital of Texas Highway Volume ($ Mil) $2,842.3 $539.9 $123.5 $139,691 $28,758.5 217,000 SF 7 story Class A office building No. of Properties 77 14 5 5,769 1,428 Buyer: GLL Real Estate Partners Total SF 9,849,227 2,036,349 354,064 583,995,689 124,764,923 Seller: Miller Global JV Riverside Resources Average Price/SF $299 $341 $382 $253 $246

Average Cap Rate (Yield) 6.3% 5.4% N/A 6.6% 6.7%

SOURCE: Real Capital Analytics Monthly Office Lease Statistics By Submarket NO. OF YTD NET YTD LEASING DIRECT TOTAL CLASS A CLASS B CLASS C AVE NET SUBMARKET BLDGS INVENTORY ABSORPTION ACTIVITY OCCUP. OCCUP. NET RENT NET RENT NET RENT RENT

CBD 85 13,012,400 428,149 362,145 92.9% 91.7% $41.32 $28.82 $29.28 $36.85 Central & West Central 79 5,433,337 106 114,446 95.0% 94.5% $30.83 $19.86 $19.59 $22.65 North 67 7,046,571 315,923 104,676 93.6% 92.4% $29.03 $19.71 $14.92 $22.64 Northeast & East 72 5,790,570 314,829 297,979 87.0% 86.9% $25.99 $17.81 $15.83 $18.96 Northwest & Far NW 216 16,936,745 (143,272) 414,232 91.9% 89.7% $23.44 $19.18 $17.24 $21.52 Round Rock & Cedar Park 47 3,044,111 88,748 67,560 88.4% 87.9% $21.70 $19.61 $14.82 $19.97 South 41 2,835,600 (1,649) 84,415 93.6% 92.8% $23.00 $20.58 $14.66 $19.80 Southeast 21 2,365,372 (5,464) 562,657 90.2% 90.1% $17.50 $16.51 $15.65 $15.47 Southwest 134 11,274,737 429,276 409,129 91.1% 89.6% $25.35 $20.59 $17.54 $24.00 AUSTIN 762 67,739,443 1,426,646 2,417,239 91.8% 90.5% $29.58 $20.17 $18.36 $24.52

SOURCE: Transwestern, CoStar AUSTIN OFFICE MARKET WATCH JUNE 2017

About Transwestern

Transwestern is a privately held, SSAE 16 compliant commercial real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Based in Houston, Transwestern has 34 U.S. offices and assists clients through more than 180 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. For more information, please visit transwestern.com/austin and follow us on Twitter: @TranswesternATX.

SEATTLE

MINNEAPOLIS BOSTON DETROIT MILWAUKEE GREENWICH NEW YORK CHICAGO NEW JERSEY SAN FRANCISCO WALNUT CREEK SALT LAKE SILICON CITY BETHESDA BALTIMORE DENVER VALLEY WASHINGTON DC NORTHERN ST. LOUIS VIRGINIA

LOS ANGELES OKLAHOMA ORANGE COUNTY CITY SAN DIEGO PHOENIX TRANSWESTERN ATLANTA FORT DALLAS WORTH LOCATIONS

HOUSTON AUSTIN SAN ANTONIO NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE Austin Team Members

Ty Puckett, Executive Vice President Development & Investment Sales (512) 314.3572 [email protected] Hale Umstattd, Executive Managing Director Investment Sales & Corp. Services (512) 314.3551 [email protected] Scott Myers, Managing Director Investment Sales (512) 314.3571 [email protected] Jeff Rogers, Managing Director Investment Sales - Multifamily (512) 314.5207 [email protected] Chris Stutzman, Managing Director Investment Sales - Multifamily (512) 314.5203 [email protected] Mike Brown, Senior Vice President Agency Leasing & Business Development (512) 314.3552 [email protected] Britt Reed, Senior Vice President Tenant Advisory (512) 314.3577 [email protected] Greg Johnson, Vice President Agency Leasing (512) 314.3570 [email protected] Luke Wheeler, Vice President Agency Leasing & Tenant Advisory (512) 314.3553 [email protected] Will Stewart, Vice President Agency Leasing & Tenant Advisory (512) 314.3574 [email protected] Brandon Lester, Vice President Agency Leasing & Tenant Advisory (512) 314.3576 [email protected] Stayton Wright, Vice President Tenant Advisory (512) 314.5205 [email protected] Josh Delk, Vice President Development & Investment Sales (512) 314.3557 [email protected] Nash Frisbie, Senior Associate Agency Leasing & Tenant Advisory (512) 314.5204 [email protected] Robert Gaston, Executive Vice President Southwest | Regional Leader (512) 314.3554 [email protected] Karen Judson, Vice President Marketing & Research (512) 314.3560 [email protected]

CONTACT METHODOLOGY Karen Judson The information in this report is the result of a compilation of information on office properties located Vice President in the Austin metropolitan area. This report includes single-tenant and multi-tenant properties 25,000 512.328.5600 SF and larger, excluding condo and medical office facilities and those properties owned and occupied [email protected] by a government agency. Unless otherwise stated, the statistics in this report are monthly, meaning they reflect a ‘snapshot in time’ and are not cumulative.Net Absorption refers to the change in vacant space. Gross Leasing Activity refers to the change in available space, including renewals, new leases, expansions and subleases.

901 S MoPac Expressway, Suite 4-250 T 512.328.5600 F 512.328.9309 Austin, Texas 78746 www.transwestern.com/austin

Copyright © 2017 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein. REAL ESTATE OUTLOOK AUSTIN OFFICE MARKET WATCH MAY 2017

Recent Office Leases OFFICE LEASE STATISTICS :: VACANCY & RENTAL RATE

25.0% $36.00  Northwest :: Indeed.com (renew) 25.0% GROSS RENT PSF ($) VACANCY (%) $36.00 75,000 SF at Reserve at Bull Creek 20.0%20.0% $32.00$32.00

 CBD :: LogicMonitor 15.0%15.0% $28.00 10,135 SF at 500 West 2nd $28.00

10.0%10.0%

 Southwest :: Northwestern Mutual $24.00 5.0% $24.00 16,000 SF at 3700 San Clemente 5.0%

0.0% $20.00 0.0% QTD $20.00 10 11 12 13 14 15 16 17  Southwest :: NSS Labs 23,000 SF at The Park on Barton Creek All office buildings larger than 25,000 SF excluding government, medical, user campuses and office condos.

Office Sales Statistics Recent Office Sales AUSTIN AUSTIN U.S. TRAILING AUSTIN QUARTER TRAILING U.S. 12 MO. Q1 2017 TO DATE 12 MO. Q1 2017  Northeast :: Strictly Pediatrics 1301 Barbara Jordan Blvd Volume ($ Mil) $2,842.3 $539.9 $123.5 $139,913.8 $28,692.7 4-story medical office building 127,338 SF No. of Properties 77 14 5 5,754 1,419 Buyer: Physicians Realty Trust Total SF 9,849,227 2,036,349 354,064 583,207,693 123,910,656 Seller: Strictly Pedicatrics Land Co., LLC Average Price/SF $299 $341 $382 $254 $248

Average Cap Rate (Yield) 6.3% 5.4% N/A 6.6% 6.7%

SOURCE: Real Capital Analytics Monthly Office Lease Statistics By Submarket NO. OF YTD NET YTD LEASING DIRECT TOTAL CLASS A CLASS B CLASS C AVE NET SUBMARKET BLDGS INVENTORY ABSORPTION ACTIVITY OCCUP. OCCUP. NET RENT NET RENT NET RENT RENT

CBD 83 12,707,222 119,180 324,454 92.7% 91.8% $41.32 $28.48 $26.66 $36.57 Central & West Central 79 5,433,337 (61,833) 102,157 93.9% 93.4% $30.68 $20.21 $19.58 $22.79 North 67 7,046,571 350,253 100,177 93.9% 92.9% $28.89 $19.99 $14.50 $22.76 Northeast & East 72 5,790,570 292,044 291,444 87.2% 86.5% $25.99 $17.51 $15.78 $18.74 Northwest & Far NW 216 16,936,745 (88,930) 366,226 91.8% 90.0% $23.45 $19.17 $17.47 $21.53 Round Rock & Cedar Park 46 3,014,111 24,656 46,770 87.2% 86.7% $21.50 $19.96 $14.55 $20.06 South 41 2,835,600 5,037 46,800 93.5% 93.0% $23.91 $19.24 $14.40 $19.29 Southeast 21 2,365,372 (11,921) 562,657 90.0% 89.8% $17.50 $16.51 $15.18 $15.35 Southwest 133 11,246,950 392,319 369,186 91.3% 89.5% $25.29 $20.22 $17.02 $23.86 AUSTIN 758 67,376,478 1,020,805 2,209,871 91.7% 90.5% $29.45 $20.08 $17.88 $24.38

SOURCE: Transwestern, CoStar AUSTIN OFFICE MARKET WATCH MAY 2017

About Transwestern

Transwestern is a privately held, SSAE 16 compliant commercial real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Based in Houston, Transwestern has 34 U.S. offices and assists clients through more than 180 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. For more information, please visit transwestern.com/austin and follow us on Twitter: @TranswesternATX.

SEATTLE

MINNEAPOLIS BOSTON DETROIT MILWAUKEE GREENWICH NEW YORK CHICAGO NEW JERSEY SAN FRANCISCO WALNUT CREEK SALT LAKE SILICON CITY BETHESDA BALTIMORE DENVER VALLEY WASHINGTON DC NORTHERN ST. LOUIS VIRGINIA

LOS ANGELES OKLAHOMA ORANGE COUNTY CITY SAN DIEGO PHOENIX TRANSWESTERN ATLANTA FORT DALLAS WORTH LOCATIONS

HOUSTON AUSTIN SAN ANTONIO NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE Austin Team Members

Ty Puckett, Executive Vice President Development & Investment Sales (512) 314.3572 [email protected] Hale Umstattd, Executive Managing Director Investment Sales & Corp. Services (512) 314.3551 [email protected] Scott Myers, Managing Director Investment Sales (512) 314.3571 [email protected] Jeff Rogers, Managing Director Investment Sales - Multifamily (512) 314.5207 [email protected] Chris Stutzman, Managing Director Investment Sales - Multifamily (512) 314.5203 [email protected] Mike Brown, Senior Vice President Agency Leasing & Business Development (512) 314.3552 [email protected] Britt Reed, Senior Vice President Tenant Advisory (512) 314.3577 [email protected] Greg Johnson, Vice President Agency Leasing (512) 314.3570 [email protected] Luke Wheeler, Vice President Agency Leasing & Tenant Advisory (512) 314.3553 [email protected] Will Stewart, Vice President Agency Leasing & Tenant Advisory (512) 314.3574 [email protected] Brandon Lester, Vice President Agency Leasing & Tenant Advisory (512) 314.3576 [email protected] Stayton Wright, Vice President Tenant Advisory (512) 314.5205 [email protected] Josh Delk, Vice President Development & Investment Sales (512) 314.3557 [email protected] Robert Gaston, Executive Vice President Southwest | Regional Leader (512) 314.3554 [email protected] Karen Judson, Vice President Marketing & Research (512) 314.3560 [email protected]

CONTACT METHODOLOGY Karen Judson The information in this report is the result of a compilation of information on office properties located Vice President in the Austin metropolitan area. This report includes single-tenant and multi-tenant properties 25,000 512.328.5600 SF and larger, excluding condo and medical office facilities and those properties owned and occupied [email protected] by a government agency. Unless otherwise stated, the statistics in this report are monthly, meaning they reflect a ‘snapshot in time’ and are not cumulative.Net Absorption refers to the change in vacant space. Gross Leasing Activity refers to the change in available space, including renewals, new leases, expansions and subleases.

901 S MoPac Expressway, Suite 4-250 T 512.328.5600 F 512.328.9309 Austin, Texas 78746 www.transwestern.com/austin

Copyright © 2017 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein. REAL ESTATE OUTLOOK AUSTIN OFFICE MARKET WATCH APRIL 2017

Recent Office Leases OFFICE LEASE STATISTICS :: VACANCY & RENTAL RATE

25.0% $36.00  Northwest :: Lithium Technologies 25.0% GROSS RENT PSF ($) VACANCY (%) $36.00 12,069 SF at Northpoint Center II 20.0%20.0% $32.00$32.00

 Northeast :: Austin Regional Clinic (renew) 15.0%15.0% $28.00 70,215 SF at American Founders Bldg. $28.00

10.0%10.0%

 Far Northwest :: Fathom Technologies $24.00 5.0% $24.00 14,053 SF at Riata Corp Park 7 (sublease) 5.0%

0.0% $20.00 0.0% QTD $20.00 10 11 12 13 14 15 16 17  CBD :: Firmspace 33,932 SF at 500 West 2nd Street All office buildings larger than 25,000 SF excluding government, medical, user campuses and office condos.

Office Sales Statistics Recent Office Sales AUSTIN AUSTIN U.S. TRAILING AUSTIN QUARTER TRAILING U.S. 12 MO. Q1 2017 TO DATE 12 MO. Q1 2017  CBD :: 100 Congress 100 Congress Avenue Volume ($ Mil) $2,699.7 $393.8 $0 $138,055.5 $26,941.8 33-story office building totaling 411,536 SF No. of Properties 72 10 0 5,453 1,279 Buyer: Invesco / Mass. Mutual Life Ins. Total SF 9,131,711 1,326,187 0 570,136,405 114,578,354 Seller: MetLife Average Price/SF $289 $302 N/A $256 $250

Average Cap Rate (Yield) 6.4% 6.4% N/A 6.6% 6.7%

SOURCE: Real Capital Analytics Monthly Office Lease Statistics By Submarket NO. OF YTD NET YTD LEASING DIRECT TOTAL CLASS A CLASS B CLASS C AVE NET SUBMARKET BLDGS INVENTORY ABSORPTION ACTIVITY OCCUP. OCCUP. NET RENT NET RENT NET RENT RENT

CBD 83 12,202,222 (127,052) 190,971 94.4% 93.6% $40.46 $28.76 $27.92 $36.19 Central & West Central 79 5,433,097 2,286 52,003 95.2% 94.6% $29.78 $20.47 $20.40 $22.88 North 67 7,046,571 377,929 66,529 94.1% 93.3% $28.09 $19.87 $13.20 $22.38 Northeast & East 72 5,819,232 226,852 290,554 86.1% 85.5% $25.99 $17.32 $14.16 $18.41 Northwest & Far NW 214 16,768,907 (189,629) 249,439 92.0% 89.9% $23.43 $19.22 $16.79 $21.49 Round Rock & Cedar Park 47 3,126,049 25,705 44,487 84.3% 83.8% $22.24 $20.07 $15.25 $20.46 South 41 2,835,600 (15,789) 39,680 92.7% 92.3% $23.57 $19.50 $18.07 $20.21 Southeast 21 2,365,372 (5,955) 556,200 90.2% 90.1% $17.50 $16.53 $15.01 $15.32 Southwest 131 11,097,886 265,150 214,947 91.3% 89.5% $26.19 $20.74 $17.54 $24.65 AUSTIN 755 66,694,936 559,497 1,704,810 91.9% 90.7% $29.14 $20.22 $18.32 $24.33

SOURCE: Transwestern, CoStar AUSTIN OFFICE MARKET WATCH APRIL 2017

About Transwestern

Transwestern is a privately held, SSAE 16 compliant commercial real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Based in Houston, Transwestern has 34 U.S. offices and assists clients through more than 180 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. For more information, please visit transwestern.com/austin and follow us on Twitter: @TranswesternATX.

SEATTLE

MINNEAPOLIS BOSTON DETROIT MILWAUKEE GREENWICH NEW YORK CHICAGO NEW JERSEY SAN FRANCISCO WALNUT CREEK SALT LAKE SILICON CITY BETHESDA BALTIMORE DENVER VALLEY WASHINGTON DC NORTHERN ST. LOUIS VIRGINIA

LOS ANGELES OKLAHOMA ORANGE COUNTY CITY SAN DIEGO PHOENIX TRANSWESTERN ATLANTA FORT DALLAS WORTH LOCATIONS

HOUSTON AUSTIN SAN ANTONIO NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE Austin Team Members

Ty Puckett, Executive Vice President Development & Investment Sales (512) 314.3572 [email protected] Hale Umstattd, Executive Managing Director Investment Sales & Corp. Services (512) 314.3551 [email protected] Leah Gallagher, Managing Director Investment Sales (512) 314.3571 [email protected] Jeff Rogers, Managing Director Investment Sales - Multifamily (512) 314.5207 [email protected] Chris Stutzman, Managing Director Investment Sales - Multifamily (512) 314.5203 [email protected] Mike Brown, Senior Vice President Agency Leasing & Business Development (512) 314.3552 [email protected] Britt Reed, Senior Vice President Tenant Advisory (512) 314.3577 [email protected] Greg Johnson, Vice President Agency Leasing (512) 314.3570 [email protected] Luke Wheeler, Vice President Agency Leasing & Tenant Advisory (512) 314.3553 [email protected] Will Stewart, Vice President Agency Leasing & Tenant Advisory (512) 314.3574 [email protected] Brandon Lester, Vice President Agency Leasing & Tenant Advisory (512) 314.3576 [email protected] Stayton Wright, Vice President Tenant Advisory (512) 314.5205 [email protected] Josh Delk, Vice President Development & Investment Sales (512) 314.3557 [email protected] Tracy Fike, Associate Tenant Advisory & Agency Leasing (512) 314.5215 [email protected] Robert Gaston, Executive Vice President Southwest | Regional Leader (512) 314.3554 [email protected] Karen Judson, Vice President Marketing & Research (512) 314.3560 [email protected]

CONTACT METHODOLOGY Karen Judson The information in this report is the result of a compilation of information on office properties located Vice President in the Austin metropolitan area. This report includes single-tenant and multi-tenant properties 25,000 512.328.5600 SF and larger, excluding condo and medical office facilities and those properties owned and occupied [email protected] by a government agency. Unless otherwise stated, the statistics in this report are monthly, meaning they reflect a ‘snapshot in time’ and are not cumulative.Net Absorption refers to the change in vacant space. Gross Leasing Activity refers to the change in available space, including renewals, new leases, expansions and subleases.

901 S MoPac Expressway, Suite 4-250 T 512.328.5600 F 512.328.9309 Austin, Texas 78746 www.transwestern.com/austin

Copyright © 2017 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein. REAL ESTATE OUTLOOK AUSTIN OFFICE MARKET WATCH FEBRUARY 2017

Recent Office Leases OFFICE LEASE STATISTICS :: VACANCY & RENTAL RATE

25.0% $36.00  Northwest :: CDK Global (renew) 25.0% GROSS RENT PSF ($) VACANCY (%) $36.00 24,218 SF at Park Centre 20.0%20.0% $32.00 $32.00

 Far Northwest :: Oracle, Inc. 15.0%15.0% $28.00 60,562 SF at Amber Oaks F $28.00

10.0%10.0%

 $24.00 Northwest :: Regus (renew) 5.0% $24.00 21,265 SF at Great Hills Plaza 5.0%

0.0% $20.00 0.0% QTD $20.00 10 11 12 13 14 15 16  North :: Sachem Inc. (renew) 12,238 SF at Austin Oaks - Travis Building All office buildings larger than 25,000 SF excluding government, medical, user campuses and office condos.

Office Sales Statistics Recent Office Sales AUSTIN AUSTIN U.S. TRAILING AUSTIN QUARTER TRAILING U.S. 12 MO. Q4 2016 TO DATE 12 MO. Q4 2016  Far Northwest :: Riata Crossing 1-4 12535-12555 Riata Vista Circle Volume ($ Mil) $2,363.8 $1,012.1 $120.0 $140,661.9 $39,970.5 4 value office buildings totaling 324,963 SF No. of Properties 73 22 4 5,321 1,408 Buyer: DivcoWest Real Estate Total SF 8,153,947 3,341,597 441,405 575,222,774 159,926,722 Seller: Karlin Real Estate Average Price/SF $278 $219 N/A $257 $267

Average Cap Rate (Yield) 6.5% 6.7% N/A 6.6% 6.7%

SOURCE: Real Capital Analytics Monthly Office Lease Statistics By Submarket NO. OF YTD NET YTD LEASING DIRECT TOTAL CLASS A CLASS B CLASS C AVE NET SUBMARKET BLDGS INVENTORY ABSORPTION ACTIVITY OCCUP. OCCUP. NET RENT NET RENT NET RENT RENT

CBD 83 12,225,163 (155,821) 72,159 94.0% 93.3% $34.77 $28.01 $26.16 $32.21 Central & West Central 78 5,380,677 43,591 25,443 95.6% 95.3% $30.68 $21.28 $20.08 $23.46 North 66 6,747,957 (13,719) 8,514 92.2% 91.5% $27.19 $19.56 $13.50 $21.90 Northeast & East 71 6,050,151 242,952 2,163 87.5% 87.4% $25.99 $16.45 $13.28 $17.69 Northwest & Far NW 214 16,787,701 (106,166) 61,740 92.2% 90.8% $23.30 $19.80 $17.73 $21.69 Round Rock & Cedar Park 44 2,888,292 (6,808) 5,547 83.6% 83.5% $21.27 $18.29 $14.69 $19.10 South 41 2,821,097 (66,979) 8,596 92.3% 92.0% $22.73 $19.40 $17.74 $19.86 Southeast 20 2,271,626 (885) 553,278 90.0% 89.9% N/A $16.53 $14.58 $16.04 Southwest 130 11,010,738 90,629 128,492 92.0% 88.6% $25.31 $20.94 $18.00 $24.07 AUSTIN 747 66,183,402 26,794 865,932 91.9% 90.7% $27.47 $20.10 $18.04 $23.45

SOURCE: Transwestern, CoStar AUSTIN OFFICE MARKET WATCH FEBRUARY 2017

About Transwestern

Transwestern is a privately held, SSAE 16 compliant commercial real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Based in Houston, Transwestern has 34 U.S. offices and assists clients through more than 180 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. For more information, please visit transwestern.com/austin and follow us on Twitter: @TranswesternATX.

SEATTLE

MINNEAPOLIS BOSTON DETROIT MILWAUKEE GREENWICH NEW YORK CHICAGO NEW JERSEY SAN FRANCISCO WALNUT CREEK SALT LAKE SILICON CITY BETHESDA BALTIMORE DENVER VALLEY WASHINGTON DC NORTHERN ST. LOUIS VIRGINIA

LOS ANGELES OKLAHOMA ORANGE COUNTY CITY SAN DIEGO PHOENIX TRANSWESTERN ATLANTA FORT DALLAS WORTH LOCATIONS

HOUSTON AUSTIN SAN ANTONIO NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE Austin Team Members

Ty Puckett, Executive Vice President Development & Investment Sales (512) 314.3572 [email protected] Hale Umstattd, Executive Managing Director Investment Sales & Corp. Services (512) 314.3551 [email protected] Leah Gallagher, Managing Director Investment Sales (512) 314.3571 [email protected] Jeff Rogers, Managing Director Investment Sales - Multifamily (512) 314.5207 [email protected] Chris Stutzman, Managing Director Investment Sales - Multifamily (512) 314.5203 [email protected] Mike Brown, Senior Vice President Agency Leasing & Business Development (512) 314.3552 [email protected] Britt Reed, Senior Vice President Tenant Advisory (512) 314.3577 [email protected] Greg Johnson, Vice President Agency Leasing (512) 314.3570 [email protected] Luke Wheeler, Vice President Agency Leasing & Tenant Advisory (512) 314.3553 [email protected] Will Stewart, Vice President Agency Leasing & Tenant Advisory (512) 314.3574 [email protected] Brandon Lester, Vice President Agency Leasing & Tenant Advisory (512) 314.3576 [email protected] Stayton Wright, Vice President Tenant Advisory (512) 314.5205 [email protected] Josh Delk, Vice President Development & Investment Sales (512) 314.3557 [email protected] Tracy Fike, Associate Tenant Advisory & Agency Leasing (512) 314.5215 [email protected] Robert Gaston, Executive Vice President Southwest | Regional Leader (512) 314.3554 [email protected] Karen Judson, Vice President Marketing & Research (512) 314.3560 [email protected]

CONTACT METHODOLOGY Karen Judson The information in this report is the result of a compilation of information on office properties located Vice President in the Austin metropolitan area. This report includes single-tenant and multi-tenant properties 25,000 512.328.5600 SF and larger, excluding condo and medical office facilities and those properties owned and occupied [email protected] by a government agency. Unless otherwise stated, the statistics in this report are monthly, meaning they reflect a ‘snapshot in time’ and are not cumulative.Net Absorption refers to the change in vacant space. Gross Leasing Activity refers to the change in available space, including renewals, new leases, expansions and subleases.

901 S MoPac Expressway, Suite 4-250 T 512.328.5600 F 512.328.9309 Austin, Texas 78746 www.transwestern.com/austin

Copyright © 2017 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein. REAL ESTATE OUTLOOK AUSTIN OFFICE MARKET WATCH JANUARY 2017

Recent Office Leases OFFICE LEASE STATISTICS :: VACANCY & RENTAL RATE

25.0% $36.00  Cedar Park :: Informatica 25.0% GROSS RENT PSF ($) VACANCY (%) $36.00 42,996 SF at Paloma Ridge B 20.0%20.0% $32.00 $32.00

 Northwest :: Rodriguez Transportation Group 15.0%15.0% $28.00 10,231 SF at Canyon Hills Office Center $28.00

10.0%10.0%

 $24.00 Far Northwest :: 360 Mortgage (renew) 5.0% $24.00 21,765 SF at Four Points Centre 5.0%

0.0% $20.00 0.0% QTD $20.00 10 11 12 13 14 15 16  Southwest :: Aeglea BioTherapeutics (exp) 11,000 SF at Barton Creek Plaza I All office buildings larger than 25,000 SF excluding government, medical, user campuses and office condos.

Office Sales Statistics Recent Office Sales AUSTIN AUSTIN U.S. TRAILING AUSTIN QUARTER TRAILING U.S. 12 MO. Q4 2016 TO DATE 12 MO. Q4 2016  North :: Exchange Park 7800 Shoal Creek Blvd. Volume ($ Mil) $2,376.2 $1,024.5 $0 $139,474.6 $38,908.1 151,917 Class B Office Building No. of Properties 71 20 0 5,249 1,349 Buyer: Seamless Capital Total SF 8,116,593 3,304,243 0 569,056,824 154,790,648 Seller: Equity Commonwealth Average Price/SF $278 $217 $0 $258 $270

Average Cap Rate (Yield) 6.5% 6.7% N/A 6.6% 6.8%

SOURCE: Real Capital Analytics Monthly Office Lease Statistics By Submarket NO. OF YTD NET YTD LEASING DIRECT TOTAL CLASS A CLASS B CLASS C AVE NET SUBMARKET BLDGS INVENTORY ABSORPTION ACTIVITY OCCUP. OCCUP. NET RENT NET RENT NET RENT RENT

CBD 83 12,284,893 (49,885) 32,603 94.8% 94.2% $34.82 $27.86 $22.00 $31.90 Central & West Central 78 5,380,677 46,863 0 95.6% 95.4% $27.44 $20.67 $19.83 $22.25 North 67 6,816,357 28,437 5,005 92.7% 92.2% $27.10 $19.49 $12.60 $21.79 Northeast & East 71 6,050,151 193,576 0 86.7% 86.6% $24.99 $15.59 $12.76 $16.85 Northwest & Far NW 214 16,800,419 (32,641) 33,368 92.6% 90.9% $23.22 $19.80 $15.86 $21.51 Round Rock & Cedar Park 44 2,888,292 (3,781) 0 83.7% 83.6% $20.02 $18.68 $14.99 $18.86 South 41 2,821,097 (55,224) 0 92.7% 92.4% $24.11 $18.76 $17.01 $19.72 Southeast 20 2,271,626 (10,205) 2,528 89.6% 89.5% N/A $16.53 $14.87 $16.12 Southwest 130 11,010,738 74,884 19,543 91.7% 88.5% $25.41 $21.37 $18.00 $24.25 AUSTIN 748 66,324,250 192,024 93,047 92.1% 90.9% $27.30 $19.92 $16.87 $23.19

SOURCE: Transwestern, CoStar AUSTIN OFFICE MARKET WATCH JANUARY 2017

About Transwestern

Transwestern is a privately held, SSAE 16 compliant commercial real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Based in Houston, Transwestern has 34 U.S. offices and assists clients through more than 180 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. For more information, please visit transwestern.com/austin and follow us on Twitter: @TranswesternATX.

SEATTLE

MINNEAPOLIS BOSTON DETROIT MILWAUKEE GREENWICH NEW YORK CHICAGO NEW JERSEY SAN FRANCISCO WALNUT CREEK SALT LAKE SILICON CITY BETHESDA BALTIMORE DENVER VALLEY WASHINGTON DC NORTHERN ST. LOUIS VIRGINIA

LOS ANGELES OKLAHOMA ORANGE COUNTY CITY SAN DIEGO PHOENIX TRANSWESTERN ATLANTA FORT DALLAS WORTH LOCATIONS

HOUSTON AUSTIN SAN ANTONIO NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE Austin Team Members

Ty Puckett, Executive Vice President Development & Investment Sales (512) 314.3572 [email protected] Hale Umstattd, Executive Managing Director Investment Sales & Corp. Services (512) 314.3551 [email protected] Leah Gallagher, Managing Director Investment Sales (512) 314.3571 [email protected] Jeff Rogers, Managing Director Investment Sales - Multifamily (512) 314.5207 [email protected] Chris Stutzman, Managing Director Investment Sales - Multifamily (512) 314.5203 [email protected] Mike Brown, Senior Vice President Agency Leasing & Business Development (512) 314.3552 [email protected] Britt Reed, Senior Vice President Tenant Advisory (512) 314.3577 [email protected] Greg Johnson, Vice President Agency Leasing (512) 314.3570 [email protected] Luke Wheeler, Vice President Agency Leasing & Tenant Advisory (512) 314.3553 [email protected] Will Stewart, Vice President Agency Leasing & Tenant Advisory (512) 314.3574 [email protected] Brandon Lester, Vice President Agency Leasing & Tenant Advisory (512) 314.3576 [email protected] Stayton Wright, Vice President Tenant Advisory (512) 314.5205 [email protected] Josh Delk, Vice President Development & Investment Sales (512) 314.3557 [email protected] Tracy Fike, Associate Tenant Advisory & Agency Leasing (512) 314.5215 [email protected] Robert Gaston, Executive Vice President Southwest | Regional Leader (512) 314.3554 [email protected] Karen Judson, Vice President Marketing & Research (512) 314.3560 [email protected]

CONTACT METHODOLOGY Karen Judson The information in this report is the result of a compilation of information on office properties located Vice President in the Austin metropolitan area. This report includes single-tenant and multi-tenant properties 25,000 512.328.5600 SF and larger, excluding condo and medical office facilities and those properties owned and occupied [email protected] by a government agency. Unless otherwise stated, the statistics in this report are monthly, meaning they reflect a ‘snapshot in time’ and are not cumulative.Net Absorption refers to the change in vacant space. Gross Leasing Activity refers to the change in available space, including renewals, new leases, expansions and subleases.

901 S MoPac Expressway, Suite 4-250 T 512.328.5600 F 512.328.9309 Austin, Texas 78746 www.transwestern.com/austin

Copyright © 2017 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein. REAL ESTATE OUTLOOK AUSTIN OFFICE MARKET WATCH OCTOBER 2016

Recent Office Leases OFFICE LEASE STATISTICS :: VACANCY & RENTAL RATE

25.0% $36.00  Southwest :: Austin Energy (renew) 25.0% GROSS RENT PSF ($) VACANCY (%) $36.00 71,920 SF at 811 Barton 20.0%20.0% $32.00 $32.00

 North :: Aristocrat Technologies Inc. 15.0%15.0% $28.00 24,916 SF at Domain 1 $28.00

10.0%10.0%

 $24.00 Northeast :: TruSource Labs 5.0% $24.00 35,565 SF at Parmer 3.2 5.0%

0.0% $20.00 0.0% QTD $20.00 10 11 12 13 14 15 16  Northwest :: Park University (renew) 11,336 SF at the Campus @ Arboretum II All office buildings larger than 25,000 SF excluding government, medical, user campuses and office condos.

Office Sales Statistics AUSTIN AUSTIN U.S. TRAILING AUSTIN QUARTER TRAILING U.S. Recent Office Sales 12 MO. Q3 2016 TO DATE 12 MO. Q3 2016  Far Northwest :: Aspen Lake 2 Volume ($ Mil) $2,076.3 $693.3 $408.4 $141,528.1 $33,857.0 10124 Lake Creek Parkway No. of Properties 63 20 3 5,398 1,256 128,990 SF Single-Tenant Value Office Building Total SF 7,426,684 2,235,761 1,363,865 587,996,602 142,381,403 Buyer: Azrieli Group Average Price/SF $309 $355 N/A $252 $235

Seller: Crimson Corp (Patrinely) Average Cap Rate (Yield) 6.6% 6.8% N/A 6.6% 6.44%

SOURCE: Real Capital Analytics Monthly Office Lease Statistics By Submarket NO. OF YTD NET YTD LEASING DIRECT TOTAL CLASS A CLASS B CLASS C AVE NET SUBMARKET BLDGS INVENTORY ABSORPTION ACTIVITY OCCUP. OCCUP. NET RENT NET RENT NET RENT RENT

CBD 82 12,242,925 131,314 615,384 94.5% 94.0% $34.98 $27.92 $23.19 $32.11 Central & West Central 78 5,380,677 249,216 393,338 94.6% 94.3% $27.15 $19.18 $16.10 $20.57 North 67 6,882,912 (108,245) 623,207 90.4% 89.7% $28.04 $19.21 $13.00 $21.94 Northeast & East 69 5,819,237 100,103 286,868 85.2% 85.2% $20.66 $16.08 $12.76 $16.46 Northwest & Far NW 214 16,810,721 316,701 1,159,914 92.6% 91.8% $23.00 $19.78 $15.95 $21.38 Round Rock & Cedar Park 42 2,823,239 161,226 101,606 84.6% 84.1% $19.41 $18.44 $14.18 $18.43 South 41 2,821,097 (87,283) 112,872 95.1% 94.6% $25.88 $18.27 $14.49 $19.33 Southeast 20 2,271,626 (13,452) 242,211 80.2% 80.2% N/A $16.52 $12.78 $15.59 Southwest 130 11,017,221 8,690 680,116 90.0% 87.7% $25.88 $20.53 $18.48 $24.39 AUSTIN 743 66,069,655 758,270 4,215,516 91.1% 90.3% $27.38 $19.67 $15.81 $23.02

SOURCE: Transwestern, CoStar AUSTIN OFFICE MARKET WATCH OCTOBER 2016

About Transwestern

Transwestern is a privately held, SSAE 16 compliant commercial real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 181 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. For more information, please visit transwestern.com/austin and follow us on Twitter: @TranswesternATX.

SEATTLE

MINNEAPOLIS BOSTON DETROIT MILWAUKEE GREENWICH NEW YORK CHICAGO NEW JERSEY SAN FRANCISCO WALNUT CREEK SALT LAKE SILICON CITY BETHESDA BALTIMORE DENVER VALLEY WASHINGTON DC NORTHERN ST. LOUIS VIRGINIA

LOS ANGELES OKLAHOMA ORANGE COUNTY CITY SAN DIEGO PHOENIX TRANSWESTERN ATLANTA FORT DALLAS WORTH LOCATIONS

HOUSTON AUSTIN SAN ANTONIO NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE Austin Team Members

Ty Puckett, Executive Vice President Development & Investment Sales (512) 314.3572 [email protected] Hale Umstattd, Executive Managing Director Investment Sales & Corp. Services (512) 314.3551 [email protected] Leah Gallagher, Managing Director Investment Sales (512) 314.3571 [email protected] Jeff Rogers, Managing Director Investment Sales - Multifamily (512) 314.5207 [email protected] Chris Stutzman, Managing Director Investment Sales - Multifamily (512) 314.5203 [email protected] Mike Brown, Senior Vice President Agency Leasing & Business Development (512) 314.3552 [email protected] Britt Reed, Senior Vice President Tenant Advisory (512) 314.3577 [email protected] Greg Johnson, Vice President Agency Leasing (512) 314.3570 [email protected] Luke Wheeler, Vice President Agency Leasing & Tenant Advisory (512) 314.3553 [email protected] Will Stewart, Vice President Agency Leasing & Tenant Advisory (512) 314.3574 [email protected] Brandon Lester, Vice President Agency Leasing & Tenant Advisory (512) 314.3576 [email protected] Stayton Wright, Vice President Tenant Advisory (512) 314.5205 [email protected] Josh Delk, Vice President Development & Investment Sales (512) 314.3557 [email protected] Tracy Fike, Associate Tenant Advisory & Agency Leasing (512) 314.5215 [email protected] Robert Gaston, Executive Vice President Southwest | Regional Leader (512) 314.3554 [email protected] Karen Judson, Vice President Marketing & Research (512) 314.3560 [email protected]

CONTACT METHODOLOGY Karen Judson The information in this report is the result of a compilation of information on office properties located Vice President in the Austin metropolitan area. This report includes single-tenant and multi-tenant properties 25,000 512.328.5600 SF and larger, excluding condo and medical office facilities and those properties owned and occupied [email protected] by a government agency. Unless otherwise stated, the statistics in this report are monthly, meaning they reflect a ‘snapshot in time’ and are not cumulative.Net Absorption refers to the change in vacant space. Gross Leasing Activity refers to the change in available space, including renewals, new leases, expansions and subleases.

901 S MoPac Expressway, Suite 4-250 T 512.328.5600 F 512.328.9309 Austin, Texas 78746 www.transwestern.com/austin

Copyright © 2016 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein. REAL ESTATE OUTLOOK AUSTIN OFFICE MARKET WATCH SEPTEMBER 2016

Recent Office Leases OFFICE LEASE STATISTICS :: VACANCY & RENTAL RATE

25.0% $34.00  Northwest :: Bankers Toolbox (exp) 25.0% GROSS RENT PSF ($) VACANCY (%) $34.00 31,715 SF at Riata Corporate Park 20.0%20.0% $30.00 $30.00

 Northwest :: SecuritiesNational Mortgage 15.0%15.0% $26.00 19,891 SF at Arboretum Atrium $26.00

10.0%10.0%

 $22.00 North :: Cantillo & Bennett (renew) 5.0% $22.00 21,132 SF at Offices at the Domain I 5.0%

0.0% $18.00 0.0% QTD $18.00 10 11 12 13 14 15 16  Northwest :: SureTec (exp/renew) 17,524 SF at Arboretum Atrium All office buildings larger than 25,000 SF excluding government, medical, user campuses and office condos.

Office Sales Statistics AUSTIN AUSTIN U.S. TRAILING AUSTIN QUARTER TRAILING U.S. Recent Office Sales 12 MO. Q2 2016 TO DATE 12 MO. Q2 2016  Northwest :: Stonebridge Plaza I & II Volume ($ Mil) $1,725.7 $462.2 $440.0 $142,018.5 $33,408.4 9600 / 9606 North MoPac Expressway No. of Properties 57 17 10 5,664 1,233 Two Class A office bldgs totaling 384,000 SF Total SF 6,475,772 1,645,454 1,562,180 615,227,523 132,810,794 Buyer: KBS Average Price/SF $310 $326 N/A $254 $276

Seller: Heitman Average Cap Rate (Yield) 6.5% 6.5% N/A 6.7% 6.6%

SOURCE: Real Capital Analytics Monthly Office Lease Statistics By Submarket NO. OF YTD NET YTD LEASING DIRECT TOTAL CLASS A CLASS B CLASS C AVE NET SUBMARKET BLDGS INVENTORY ABSORPTION ACTIVITY OCCUP. OCCUP. NET RENT NET RENT NET RENT RENT

CBD 81 12,185,062 137,383 589,612 94.6% 94.2% $33.87 $27.91 $23.29 $31.40 Central & West Central 78 5,474,000 255,041 378,101 94.8% 94.5% $27.13 $18.50 $16.46 $20.30 North 67 6,813,902 (61,673) 299,440 90.7% 90.3% $28.15 $19.24 $13.00 $21.99 Northeast & East 68 5,509,029 (46,996) 89,209 82.8% 82.7% $20.66 $16.43 $12.95 $16.73 Northwest & Far NW 214 16,801,868 351,877 1,608,299 92.7% 92.0% $22.99 $19.77 $16.09 $21.38 Round Rock & Cedar Park 42 2,806,135 157,275 97,798 84.3% 83.8% $19.60 $18.38 $14.88 $18.53 South 41 2,821,097 (96,175) 92,997 94.7% 94.3% $23.81 $18.52 $14.50 $18.93 Southeast 20 2,271,626 (11,568) 237,774 80.3% 80.3% N/A $16.52 $12.50 $15.52 Southwest 131 11,055,490 41,400 655,365 90.5% 88.0% $25.37 $21.50 $19.01 $24.28 AUSTIN 742 65,738,209 726,564 4,048,595 91.1% 90.3% $27.02 $19.71 $16.01 $22.89

SOURCE: Transwestern, CoStar AUSTIN OFFICE MARKET WATCH SEPTEMBER 2016

About Transwestern

Transwestern is a privately held, SSAE 16 compliant commercial real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 181 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. For more information, please visit transwestern.com/austin and follow us on Twitter: @TranswesternATX.

SEATTLE

MINNEAPOLIS BOSTON DETROIT MILWAUKEE GREENWICH NEW YORK CHICAGO NEW JERSEY SAN FRANCISCO WALNUT CREEK SALT LAKE SILICON CITY BETHESDA BALTIMORE DENVER VALLEY WASHINGTON DC NORTHERN ST. LOUIS VIRGINIA

LOS ANGELES OKLAHOMA ORANGE COUNTY CITY SAN DIEGO PHOENIX TRANSWESTERN ATLANTA FORT DALLAS WORTH LOCATIONS

HOUSTON AUSTIN SAN ANTONIO NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE Austin Team Members

Ty Puckett, Executive Vice President Development & Investment Sales (512) 314.3572 [email protected] Hale Umstattd, Executive Managing Director Investment Sales & Corp. Services (512) 314.3551 [email protected] Leah Gallagher, Managing Director Investment Sales (512) 314.3571 [email protected] Jeff Rogers, Managing Director Investment Sales - Multifamily (512) 314.5207 [email protected] Chris Stutzman, Managing Director Investment Sales - Multifamily (512) 314.5203 [email protected] Mike Brown, Senior Vice President Agency Leasing & Business Development (512) 314.3552 [email protected] Britt Reed, Senior Vice President Tenant Advisory (512) 314.3577 [email protected] Greg Johnson, Vice President Agency Leasing (512) 314.3570 [email protected] Luke Wheeler, Vice President Agency Leasing & Tenant Advisory (512) 314.3553 [email protected] Will Stewart, Vice President Agency Leasing & Tenant Advisory (512) 314.3574 [email protected] Brandon Lester, Vice President Agency Leasing & Tenant Advisory (512) 314.3576 [email protected] Stayton Wright, Vice President Tenant Advisory (512) 314.5205 [email protected] Josh Delk, Vice President Development & Investment Sales (512) 314.3557 [email protected] Tracy Fike, Associate Tenant Advisory & Agency Leasing (512) 314.5215 [email protected] Robert Gaston, Executive Vice President Southwest | Regional Leader (512) 314.3554 [email protected] Karen Judson, Vice President Marketing & Research (512) 314.3560 [email protected]

CONTACT METHODOLOGY Karen Judson The information in this report is the result of a compilation of information on office properties located Vice President in the Austin metropolitan area. This report includes single-tenant and multi-tenant properties 25,000 512.328.5600 SF and larger, excluding condo and medical office facilities and those properties owned and occupied [email protected] by a government agency. Unless otherwise stated, the statistics in this report are monthly, meaning they reflect a ‘snapshot in time’ and are not cumulative.Net Absorption refers to the change in vacant space. Gross Leasing Activity refers to the change in available space, including renewals, new leases, expansions and subleases.

901 S MoPac Expressway, Suite 4-250 T 512.328.5600 F 512.328.9309 Austin, Texas 78746 www.transwestern.com/austin

Copyright © 2016 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein. REAL ESTATE OUTLOOK AUSTIN OFFICE MARKET WATCH AUGUST 2016

Recent Office Leases OFFICE LEASE STATISTICS :: VACANCY & RENTAL RATE

25.0% $34.00  Southeast :: Stalwart Films 25.0% GROSS RENT PSF ($) VACANCY (%) $34.00 92,294 SF at Bergstrom Tech Center 310 20.0%20.0% $30.00 $30.00

 Northwest :: E2Open (renew/exp) 15.0%15.0% $26.00 22,637 SF at Great Hills Plaza $26.00

10.0%10.0%

 $22.00 North :: Accruent 5.0% $22.00 104,448 SF at Domain 4 5.0%

0.0% $18.00 0.0% QTD $18.00 10 11 12 13 14 15 16  Northwest :: Worldpay USA (renew) 13,938 SF at Riata Corporate Park All office buildings larger than 25,000 SF excluding government, medical, user campuses and office condos.

Office Sales Statistics AUSTIN AUSTIN U.S. TRAILING AUSTIN QUARTER TRAILING U.S. Recent Office Sales 12 MO. Q2 2016 TO DATE 12 MO. Q2 2016  East :: Eastside Village Volume ($ Mil) $1,718.9 $455.4 $260.1 $141,369.2 $33,104.7 1645 East 6th Street No. of Properties 55 15 3 5,604 1,177 96,000 SF creative office building Total SF 6,456,402 1,626,084 904,018 612,439,248 130,154,993 Buyer: CIM Group Average Price/SF $310 $326 N/A $254 $281

Seller: Transwestern Average Cap Rate (Yield) 6.5% 6.5% N/A 6.7% 6.6%

SOURCE: Real Capital Analytics Monthly Office Lease Statistics By Submarket NO. OF YTD NET YTD LEASING DIRECT TOTAL CLASS A CLASS B CLASS C AVE NET SUBMARKET BLDGS INVENTORY ABSORPTION ACTIVITY OCCUP. OCCUP. NET RENT NET RENT NET RENT RENT

CBD 81 12,185,062 83,222 488,935 94.3% 93.7% $34.55 $27.89 $22.42 $31.77 Central & West Central 77 5,440,651 184,575 320,816 94.2% 94.1% $24.03 $18.63 $14.88 $19.21 North 67 6,817,987 (111,781) 227,225 90.5% 89.5% $27.33 $20.02 $13.00 $22.22 Northeast & East 68 5,504,389 72,551 79,026 85.1% 85.0% $20.07 $13.82 $13.05 $14.79 Northwest & Far NW 213 16,825,924 262,336 927,455 92.5% 91.5% $22.08 $19.58 $17.29 $20.87 Round Rock & Cedar Park 41 2,772,033 134,788 83,776 84.4% 84.0% $19.60 $18.89 $14.88 $18.80 South 41 2,821,097 (72,351) 70,205 95.2% 95.2% $23.51 $20.29 $14.50 $19.74 Southeast 20 2,271,626 (13,169) 236,173 80.2% 80.2% N/A $18.04 $12.50 $16.66 Southwest 131 11,161,392 146,221 603,898 91.1% 88.9% $25.32 $20.68 $19.01 $24.03 AUSTIN 739 65,800,161 686,392 3,037,509 91.2% 90.4% $26.70 $19.56 $15.78 $22.65

SOURCE: Transwestern, CoStar AUSTIN OFFICE MARKET WATCH AUGUST 2016

About Transwestern

Transwestern is a privately held, SSAE 16 compliant commercial real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 181 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. For more information, please visit transwestern.com/austin and follow us on Twitter: @TranswesternATX.

SEATTLE

MINNEAPOLIS BOSTON DETROIT MILWAUKEE GREENWICH NEW YORK CHICAGO NEW JERSEY SAN FRANCISCO WALNUT CREEK SALT LAKE SILICON CITY BETHESDA BALTIMORE DENVER VALLEY WASHINGTON DC NORTHERN ST. LOUIS VIRGINIA

LOS ANGELES OKLAHOMA ORANGE COUNTY CITY SAN DIEGO PHOENIX TRANSWESTERN ATLANTA FORT DALLAS WORTH LOCATIONS

HOUSTON AUSTIN SAN ANTONIO NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE Austin Team Members

Ty Puckett, Executive Vice President Development & Investment Sales (512) 314.3572 [email protected] Hale Umstattd, Executive Managing Director Investment Sales & Corp. Services (512) 314.3551 [email protected] Leah Gallagher, Managing Director Investment Sales (512) 314.3571 [email protected] Jeff Rogers, Managing Director Investment Sales - Multifamily (512) 314.5207 [email protected] Chris Stutzman, Managing Director Investment Sales - Multifamily (512) 314.5203 [email protected] Mike Brown, Senior Vice President Agency Leasing & Business Development (512) 314.3552 [email protected] Britt Reed, Senior Vice President Tenant Advisory (512) 314.3577 [email protected] Greg Johnson, Vice President Agency Leasing (512) 314.3570 [email protected] Luke Wheeler, Vice President Agency Leasing & Tenant Advisory (512) 314.3553 [email protected] Will Stewart, Vice President Agency Leasing & Tenant Advisory (512) 314.3574 [email protected] Brandon Lester, Vice President Agency Leasing & Tenant Advisory (512) 314.3576 [email protected] Stayton Wright, Vice President Tenant Advisory (512) 314.5205 [email protected] Josh Delk, Vice President Development & Investment Sales (512) 314.3557 [email protected] Tracy Fike, Associate Tenant Advisory & Agency Leasing (512) 314.5215 [email protected] Robert Gaston, Executive Vice President Southwest | Regional Leader (512) 314.3554 [email protected] Karen Judson, Vice President Marketing & Research (512) 314.3560 [email protected]

CONTACT METHODOLOGY Karen Judson The information in this report is the result of a compilation of information on office properties located Vice President in the Austin metropolitan area. This report includes single-tenant and multi-tenant properties 25,000 512.328.5600 SF and larger, excluding condo and medical office facilities and those properties owned and occupied [email protected] by a government agency. Unless otherwise stated, the statistics in this report are monthly, meaning they reflect a ‘snapshot in time’ and are not cumulative.Net Absorption refers to the change in vacant space. Gross Leasing Activity refers to the change in available space, including renewals, new leases, expansions and subleases.

901 S MoPac Expressway, Suite 4-250 T 512.328.5600 F 512.328.9309 Austin, Texas 78746 www.transwestern.com/austin

Copyright © 2016 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein. REAL ESTATE OUTLOOK AUSTIN OFFICE MARKET WATCH JULY 2016

Recent Office Leases OFFICE LEASE STATISTICS :: VACANCY & RENTAL RATE

25.0% $34.00  Southwest :: Samsung 25.0% GROSS RENT PSF ($) VACANCY (%) $34.00 101,596 SF at 3900 San Clemente 20.0%20.0% $30.00 $30.00

 Far Northwest :: MobileIron (expansion) 15.0%15.0% $26.00 15,018 SF at Riata Corporate Park $26.00

10.0%10.0%

 CBD :: Indeed.com $22.00 5.0% $22.00 38,174 SF at 5th + Colorado 5.0%

0.0% $18.00 0.0% QTD $18.00 10 11 12 13 14 15 16  Cedar Park :: Austin Regional Clinic 20,287 SF at Cedar Park Medical Plaza C All office buildings larger than 25,000 SF excluding government, medical, user campuses and office condos.

Office Sales Statistics AUSTIN AUSTIN U.S. TRAILING AUSTIN QUARTER TRAILING U.S. Recent Office Sales 12 MO. Q2 2016 TO DATE 12 MO. Q2 2016  Northwest :: Champion Office Park I & II Volume ($ Mil) $1,578.4 $315.0 $0 $133,138.7 $25,086.0 2 Class A office buildings totaling 221,136 SF No. of Properties 51 11 0 5,223 799 Buyer: Menlo Capital Total SF 6,062,520 1,232,202 0 571,233,956 89,176,245 Seller: Granite Properties Average Price/SF $312 $353 N/A $257 $311

Average Cap Rate (Yield) 6.4% 6.5% N/A 6.7% 6.5%

SOURCE: Real Capital Analytics Monthly Office Lease Statistics By Submarket NO. OF YTD NET YTD LEASING DIRECT TOTAL CLASS A CLASS B CLASS C AVE NET SUBMARKET BLDGS INVENTORY ABSORPTION ACTIVITY OCCUP. OCCUP. NET RENT NET RENT NET RENT RENT

CBD 82 12,285,062 (61,719) 381,735 93.2% 92.6% $34.14 $27.54 $20.96 $31.30 Central & West Central 76 5,385,288 182,927 313,369 94.1% 94.0% $24.29 $18.84 $15.39 $19.50 North 67 6,822,144 (263,553) 224,909 88.3% 87.3% $27.33 $20.23 $13.00 $22.36 Northeast & East 68 5,503,889 29,848 45,286 84.3% 84.3% $20.07 $14.32 $13.75 $15.23 Northwest & Far NW 212 16,787,502 243,028 789,289 92.3% 91.3% $22.12 $19.52 $17.29 $20.87 Round Rock & Cedar Park 41 2,772,033 128,100 79,928 84.5% 83.8% $19.62 $18.50 $14.53 $18.57 South 41 2,821,097 (32,824) 47,793 96.6% 96.6% $22.92 $20.45 $14.00 $19.55 Southeast 20 2,267,598 (13,675) 225,439 80.1% 80.1% N/A $18.00 $12.96 $16.74 Southwest 130 11,126,545 100,469 403,875 91.0% 88.7% $25.00 $20.05 $19.79 $23.66 AUSTIN 737 65,771,158 312,601 2,511,623 90.7% 89.9% $26.56 $19.55 $15.74 $22.57

SOURCE: Transwestern, CoStar AUSTIN OFFICE MARKET WATCH JULY 2016

About Transwestern

Transwestern is a privately held, SSAE 16 compliant commercial real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 181 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. For more information, please visit transwestern.com/austin and follow us on Twitter: @TranswesternATX.

SEATTLE

MINNEAPOLIS BOSTON DETROIT MILWAUKEE GREENWICH NEW YORK CHICAGO NEW JERSEY SAN FRANCISCO WALNUT CREEK SALT LAKE SILICON CITY BETHESDA BALTIMORE DENVER VALLEY WASHINGTON DC NORTHERN ST. LOUIS VIRGINIA

LOS ANGELES OKLAHOMA ORANGE COUNTY CITY SAN DIEGO PHOENIX TRANSWESTERN ATLANTA FORT DALLAS WORTH LOCATIONS

HOUSTON AUSTIN SAN ANTONIO NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE Austin Team Members

Ty Puckett, Executive Vice President Development & Investment Sales (512) 314.3572 [email protected] Hale Umstattd, Executive Managing Director Investment Sales & Corp. Services (512) 314.3551 [email protected] Leah Gallagher, Managing Director Investment Sales (512) 314.3571 [email protected] Jeff Rogers, Managing Director Investment Sales - Multifamily (512) 314.5207 [email protected] Chris Stutzman, Managing Director Investment Sales - Multifamily (512) 314.5203 [email protected] Mike Brown, Senior Vice President Agency Leasing & Business Development (512) 314.3552 [email protected] Britt Reed, Senior Vice President Tenant Advisory (512) 314.3577 [email protected] Greg Johnson, Vice President Agency Leasing (512) 314.3570 [email protected] Luke Wheeler, Vice President Agency Leasing & Tenant Advisory (512) 314.3553 [email protected] Will Stewart, Vice President Agency Leasing & Tenant Advisory (512) 314.3574 [email protected] Brandon Lester, Vice President Agency Leasing & Tenant Advisory (512) 314.3576 [email protected] Stayton Wright, Vice President Tenant Advisory (512) 314.5205 [email protected] Tracy Fike, Associate Tenant Advisory & Agency Leasing (512) 314.5215 [email protected] Josh Delk, Associate Vice President Development & Investment Sales (512) 314.3557 [email protected] Robert Gaston, Executive Vice President Southwest | Regional Leader (512) 314.3554 [email protected] Karen Judson, Vice President Marketing & Research (512) 314.3560 [email protected]

CONTACT METHODOLOGY Karen Judson The information in this report is the result of a compilation of information on office properties located Vice President in the Austin metropolitan area. This report includes single-tenant and multi-tenant properties 25,000 512.328.5600 SF and larger, excluding condo and medical office facilities and those properties owned and occupied [email protected] by a government agency. Unless otherwise stated, the statistics in this report are monthly, meaning they reflect a ‘snapshot in time’ and are not cumulative.Net Absorption refers to the change in vacant space. Gross Leasing Activity refers to the change in available space, including renewals, new leases, expansions and subleases.

901 S MoPac Expressway, Suite 4-250 T 512.328.5600 F 512.328.9309 Austin, Texas 78746 www.transwestern.com/austin

Copyright © 2016 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein. REAL ESTATE OUTLOOK AUSTIN OFFICE MARKET WATCH JUNE 2016

Recent Office Leases OFFICE LEASE STATISTICS :: VACANCY & RENTAL RATE

25.0% $34.00  Southeast :: Stalwart Films 25.0% GROSS RENT PSF ($) VACANCY (%) $34.00 92,294 SF at Bergstrom Tech Center 310 20.0%20.0% $30.00 $30.00

 Northwest :: Stewart Title Company 15.0%15.0% $26.00 15,893 SF at Atrium Office Center $26.00

10.0%10.0%

 Cedar Park :: CalAtlantic Homes $22.00 5.0% $22.00 22,285 SF at Paloma Ridge 5.0%

0.0% $18.00 0.0% QTD $18.00 10 11 12 13 14 15 16  East :: Conde Nast 10,655 SF at 1645 E. 6th @ The Arnold All office buildings larger than 25,000 SF excluding government, medical, user campuses and office condos.

Office Sales Statistics AUSTIN AUSTIN U.S. TRAILING AUSTIN QUARTER TRAILING U.S. Recent Office Sales 12 MO. Q1 2016 TO DATE 12 MO. Q1 2016  North :: Lakewood on the Park B & C Volume ($ Mil) $1,970.5 $195.6 $135.5 $143,319.2 $30,825.9 2 Class B office buildings totaling 180,558 SF No. of Properties 57 13 6 5,870 1,240 Buyer: CapRidge Partners Total SF 8,087,893 865,154 578,869 632,636,872 123,275,843 Seller: Equity Commonwealth Average Price/SF $283 $209 N/A $245 $264

Average Cap Rate (Yield) 6.6% 6.5% N/A 6.7% 6.6%

SOURCE: Real Capital Analytics Monthly Office Lease Statistics By Submarket NO. OF YTD NET YTD LEASING DIRECT TOTAL CLASS A CLASS B CLASS C AVE NET SUBMARKET BLDGS INVENTORY ABSORPTION ACTIVITY OCCUP. OCCUP. NET RENT NET RENT NET RENT RENT

CBD 82 12,285,062 (102,049) 292,863 92.8% 92.3% $34.91 $27.80 $21.37 $31.90 Central & West Central 76 5,385,288 162,474 282,410 93.9% 93.6% $24.27 $18.81 $15.39 $19.48 North 66 6,618,934 (250,070) 200,920 88.1% 87.1% $27.29 $20.29 $13.00 $22.38 Northeast & East 68 5,503,889 40,709 29,791 84.4% 84.3% $17.58 $13.76 $11.09 $14.09 Northwest & Far NW 212 16,787,502 150,548 650,021 91.9% 90.7% $22.03 $19.50 $16.53 $20.76 Round Rock & Cedar Park 41 2,834,329 33,539 69,355 81.5% 80.8% $19.65 $18.22 $14.93 $18.47 South 41 2,821,097 (30,637) 42,728 96.6% 96.6% $21.37 $20.10 $14.00 $18.98 Southeast 20 2,267,598 (12,775) 6,015 80.2% 80.2% N/A $18.00 $13.01 $16.75 Southwest 129 11,087,568 (56,652) 351,372 91.4% 89.5% $25.63 $20.85 $20.00 $24.32 AUSTIN 735 65,591,267 (64,913) 1,925,475 90.5% 89.6% $26.79 $19.53 $15.42 $22.64

SOURCE: Transwestern, CoStar AUSTIN OFFICE MARKET WATCH JUNE 2016

About Transwestern

Transwestern is a privately held, SSAE 16 compliant commercial real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 181 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. For more information, please visit transwestern.com/austin and follow us on Twitter: @TranswesternATX.

SEATTLE

MINNEAPOLIS BOSTON DETROIT MILWAUKEE GREENWICH NEW YORK CHICAGO NEW JERSEY SAN FRANCISCO WALNUT CREEK SALT LAKE SILICON CITY BETHESDA BALTIMORE DENVER VALLEY WASHINGTON DC NORTHERN ST. LOUIS VIRGINIA

LOS ANGELES OKLAHOMA ORANGE COUNTY CITY SAN DIEGO PHOENIX TRANSWESTERN ATLANTA FORT DALLAS WORTH LOCATIONS

HOUSTON AUSTIN SAN ANTONIO NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE Austin Team Members

Ty Puckett, Executive Vice President Development & Investment Sales (512) 314.3572 [email protected] Hale Umstattd, Executive Managing Director Investment Sales & Corp. Services (512) 314.3551 [email protected] Leah Gallagher, Managing Director Investment Sales (512) 314.3571 [email protected] Jeff Rogers, Managing Director Investment Sales - Multifamily (512) 314.5207 [email protected] Chris Stutzman, Managing Director Investment Sales - Multifamily (512) 314.5203 [email protected] Mike Brown, Senior Vice President Agency Leasing & Business Development (512) 314.3552 [email protected] Britt Reed, Senior Vice President Tenant Advisory (512) 314.3577 [email protected] Greg Johnson, Vice President Agency Leasing (512) 314.3570 [email protected] Luke Wheeler, Vice President Agency Leasing & Tenant Advisory (512) 314.3553 [email protected] Will Stewart, Vice President Agency Leasing & Tenant Advisory (512) 314.3574 [email protected] Brandon Lester, Vice President Agency Leasing & Tenant Advisory (512) 314.3576 [email protected] Tracy Fike, Associate Tenant Advisory & Agency Leasing (512) 314.5215 [email protected] Josh Delk, Associate Vice President Development & Investment Sales (512) 314.3557 [email protected] Tim Ryan, Development Associate Development & Investment Sales (512) 314.3961 [email protected] Robert Gaston, Executive Vice President Southwest | City Leader (512) 314.3554 [email protected] Karen Judson, Vice President Marketing & Research (512) 314.3560 [email protected]

CONTACT METHODOLOGY Karen Judson The information in this report is the result of a compilation of information on office properties located Vice President in the Austin metropolitan area. This report includes single-tenant and multi-tenant properties 25,000 512.328.5600 SF and larger, excluding condo and medical office facilities and those properties owned and occupied [email protected] by a government agency. Unless otherwise stated, the statistics in this report are monthly, meaning they reflect a ‘snapshot in time’ and are not cumulative.Net Absorption refers to the change in vacant space. Gross Leasing Activity refers to the change in available space, including renewals, new leases, expansions and subleases.

901 S MoPac Expressway, Suite 4-250 T 512.328.5600 F 512.328.9309 Austin, Texas 78746 www.transwestern.com/austin

Copyright © 2016 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein. REAL ESTATE OUTLOOK AUSTIN OFFICE MARKET WATCH MARCH 2016

Recent Office Leases OFFICE LEASE STATISTICS :: VACANCY & RENTAL RATE

25.0% $34.00  East :: Kohana Coffee, Inc. 25.0% GROSS RENT PSF ($) VACANCY (%) $34.00 19,770 SF at 1645 East 6th 20.0%20.0% $30.00 $30.00

 Round Rock :: Regus Round Rock 15.0%15.0% $26.00 13,575 SF at Old Towne Square $26.00

10.0%10.0%

 Central :: NetSpend $22.00 5.0% $22.00 75,735 SF at 5800 Airport 5.0%

0.0% QTD $18.00 0.0% $18.00 10 11 12 13 14 15  Southwest :: Padgett Stratemann (renew) 18,217 SF at 811 Barton All office buildings larger than 25,000 SF excluding government, medical, user campuses and office condos.

Office Sales Statistics AUSTIN AUSTIN U.S. TRAILING AUSTIN QUARTER TRAILING U.S. Recent Office Sales 12 MO. Q4 2015 TO DATE 12 MO. Q4 2015  CBD :: 301 Congress Volume ($ Mil) $2,119.3 $710.2 $40.1 $148,202.3 $41,507.0 Class A office highrise totaling 418,338 SF No. of Properties 59 12 7 5,954 1,566 Seller: CalPERS JV Commonwealth Ptnrs Total SF 8,650,678 2,614,334 253,793 649,228,690 180,560,980 Buyer: Prudential Real Estate Average Price/SF $288 $302 N/A $248 $238

Average Cap Rate (Yield) 6.6% 6.5% N/A 6.7% 6.7%

SOURCE: Real Capital Analytics Monthly Office Lease Statistics By Submarket NO. OF YTD NET YTD LEASING DIRECT TOTAL CLASS A CLASS B CLASS C AVE NET SUBMARKET BLDGS INVENTORY ABSORPTION ACTIVITY OCCUP. OCCUP. NET RENT NET RENT NET RENT RENT

CBD 80 12,005,216 5,217 109,283 94.8% 94.5% $33.95 $27.27 $19.00 $30.86 Central & West Central 76 5,384,762 70,677 223,100 91.9% 91.9% $25.98 $17.38 $16.50 $19.43 North 65 6,549,244 73,005 16,785 94.0% 93.1% $27.24 $19.46 $13.89 $21.89 Northeast & East 65 5,325,660 104,013 17,532 83.8% 83.8% $19.00 $13.85 $8.34 $14.04 Northwest & Far NW 213 16,869,259 146,806 346,681 91.6% 90.7% $22.01 $19.00 $16.86 $20.60 Round Rock & Cedar Park 41 2,699,388 (53,281) 26,363 80.8% 80.3% $19.09 $18.10 $14.00 $18.09 South 41 2,821,097 (7,824) 28,130 97.5% 97.5% $22.50 $18.50 $14.56 $18.59 Southeast 20 2,267,598 (1,296) 0 80.7% 80.7% N/A $15.94 $12.50 $14.33 Southwest 128 10,953,855 (35,637) 145,846 91.4% 89.3% $25.22 $21.23 $18.50 $24.08 AUSTIN 729 64,876,079 301,680 913,720 91.2% 90.5% $25.95 $19.04 $15.18 $22.01

SOURCE: Transwestern, CoStar AUSTIN OFFICE MARKET WATCH MARCH 2016

About Transwestern

Transwestern is a privately held, SSAE 16 compliant commercial real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 181 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. For more information, please visit transwestern.com/austin and follow us on Twitter: @TranswesternATX.

SEATTLE

MINNEAPOLIS BOSTON DETROIT MILWAUKEE GREENWICH NEW YORK CHICAGO NEW JERSEY SAN FRANCISCO WALNUT CREEK SALT LAKE SILICON CITY BETHESDA BALTIMORE DENVER VALLEY WASHINGTON DC NORTHERN ST. LOUIS VIRGINIA

LOS ANGELES OKLAHOMA ORANGE COUNTY CITY SAN DIEGO PHOENIX TRANSWESTERN ATLANTA FORT DALLAS WORTH LOCATIONS

HOUSTON AUSTIN SAN ANTONIO NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE Austin Team Members

Ty Puckett, Executive Vice President Development & Investment Sales (512) 314.3572 [email protected] Hale Umstattd, Executive Managing Director Investment Sales & Corp. Services (512) 314.3551 [email protected] Leah Gallagher, Managing Director Investment Sales (512) 314.3571 [email protected] Jeff Rogers, Managing Director Investment Sales - Multifamily (512) 314.5207 [email protected] Chris Stutzman, Managing Director Investment Sales - Multifamily (512) 314.5203 [email protected] Mike Brown, Senior Vice President Agency Leasing & Business Development (512) 314.3552 [email protected] Britt Reed, Senior Vice President Tenant Advisory (512) 314.3577 [email protected] Greg Johnson, Vice President Agency Leasing (512) 314.3570 [email protected] Luke Wheeler, Vice President Agency Leasing & Tenant Advisory (512) 314.3553 [email protected] Will Stewart, Vice President Agency Leasing & Tenant Advisory (512) 314.3574 [email protected] Brandon Lester, Vice President Agency Leasing & Tenant Advisory (512) 314.3576 [email protected] Tracy Fike, Associate Tenant Advisory & Agency Leasing (512) 314.5215 [email protected] Josh Delk, Associate Vice President Development & Investment Sales (512) 314.3557 [email protected] Tim Ryan, Development Associate Development & Investment Sales (512) 314.3961 [email protected] Robert Gaston, Executive Vice President Southwest | City Leader (512) 314.3554 [email protected] Karen Judson, Vice President Marketing & Research (512) 314.3560 [email protected]

CONTACT METHODOLOGY Karen Judson The information in this report is the result of a compilation of information on office properties located Vice President in the Austin metropolitan area. This report includes single-tenant and multi-tenant properties 25,000 512.328.5600 SF and larger, excluding condo and medical office facilities and those properties owned and occupied [email protected] by a government agency. Unless otherwise stated, the statistics in this report are monthly, meaning they reflect a ‘snapshot in time’ and are not cumulative.Net Absorption refers to the change in vacant space. Gross Leasing Activity refers to the change in available space, including renewals, new leases, expansions and subleases.

901 S MoPac Expressway, Suite 4-250 T 512.328.5600 F 512.328.9309 Austin, Texas 78746 www.transwestern.com/austin

Copyright © 2016 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein. REAL ESTATE OUTLOOK AUSTIN OFFICE MARKET WATCH FEBRUARY 2016

Recent Office Leases OFFICE LEASE STATISTICS :: VACANCY & RENTAL RATE

25.0% $34.00  Southwest :: Innography Inc. 25.0% GROSS RENT PSF ($) VACANCY (%) $34.00 22,936 SF at 3900 San Clemente 20.0%20.0% $30.00 $30.00

 Central :: Projekt202 (renew) 15.0%15.0% $26.00 13,859 SF at 1300 Guadalupe $26.00

10.0%10.0%

 CBD :: Pillsbury Winthrop Shaw Pittman $22.00 5.0% $22.00 14,000 SF at Frost Bank Tower 5.0%

0.0% QTD $18.00 0.0% $18.00 10 11 12 13 14 15  Southwest :: J&J Worldwide 13,084 SF at 7710 Rialto B All office buildings larger than 25,000 SF excluding government, medical, user campuses and office condos.

Office Sales Statistics AUSTIN AUSTIN U.S. TRAILING AUSTIN QUARTER TRAILING U.S. Recent Office Sales 12 MO. Q4 2015 TO DATE 12 MO. Q4 2015  Far Northwest :: Parmer Business Park A-F Volume ($ Mil) $2,113.3 $704.2 $16.7 $147,610.5 $40,904.8 6 value office buildings totaling 256,737 SF No. of Properties 58 11 3 5,917 1,534 Seller: RREEF Total SF 8,600,116 2,563,772 82,520 646,056,062 177,268,650 Buyer: Intercontinental JV Eurus Capital Average Price/SF $289 $306 N/A $249 $239

Average Cap Rate (Yield) 6.6% 6.5% N/A 6.7% 6.6%

SOURCE: Real Capital Analytics Monthly Office Lease Statistics By Submarket NO. OF YTD NET YTD LEASING DIRECT TOTAL CLASS A CLASS B CLASS C AVE NET SUBMARKET BLDGS INVENTORY ABSORPTION ACTIVITY OCCUP. OCCUP. NET RENT NET RENT NET RENT RENT

CBD 81 12,076,852 10,942 33,610 94.8% 94.6% $33.39 $25.18 $16.75 $29.73 Central & West Central 77 5,472,059 14,362 62,752 90.8% 90.5% $26.74 $17.25 $16.40 $19.54 North 67 6,743,268 69,115 285 94.3% 93.2% $27.18 $19.55 $13.89 $21.93 Northeast & East 66 6,284,617 14,506 5,422 84.9% 84.9% $18.98 $13.85 $8.34 $14.04 Northwest & Far NW 213 16,879,504 56,414 123,539 91.1% 90.2% $22.07 $18.81 $16.80 $20.57 Round Rock & Cedar Park 41 2,705,016 (56,480) 4,078 80.5% 80.0% $19.09 $18.10 $14.00 $18.09 South 42 2,841,270 17,868 23,576 97.5% 97.3% $22.50 $17.53 $14.56 $18.10 Southeast 20 2,267,598 (8,872) 0 80.4% 80.4% N/A $15.94 $12.50 $14.33 Southwest 126 10,828,559 (8,559) 52,882 91.4% 89.5% $24.72 $20.18 $17.99 $23.44 AUSTIN 733 66,098,743 109,296 306,144 91.0% 90.2% $25.74 $18.59 $14.78 $21.67

SOURCE: Transwestern, CoStar AUSTIN OFFICE MARKET WATCH FEBRUARY 2016

About Transwestern

Transwestern is a privately held, SSAE 16 compliant commercial real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 181 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. For more information, please visit transwestern.com/austin and follow us on Twitter: @TranswesternATX.

SEATTLE

MINNEAPOLIS BOSTON DETROIT MILWAUKEE GREENWICH NEW YORK CHICAGO NEW JERSEY SAN FRANCISCO WALNUT CREEK SALT LAKE SILICON CITY BETHESDA BALTIMORE DENVER VALLEY WASHINGTON DC NORTHERN ST. LOUIS VIRGINIA

LOS ANGELES OKLAHOMA ORANGE COUNTY CITY SAN DIEGO PHOENIX TRANSWESTERN ATLANTA FORT DALLAS WORTH LOCATIONS

HOUSTON AUSTIN SAN ANTONIO NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE Austin Team Members

Ty Puckett, Executive Vice President Development & Investment Sales (512) 314.3572 [email protected] Hale Umstattd, Executive Managing Director Investment Sales & Corp. Services (512) 314.3551 [email protected] Leah Gallagher, Managing Director Investment Sales (512) 314.3571 [email protected] Jeff Rogers, Managing Director Investment Sales - Multifamily (512) 314.5207 [email protected] Chris Stutzman, Managing Director Investment Sales - Multifamily (512) 314.5203 [email protected] Mike Brown, Senior Vice President Agency Leasing & Business Development (512) 314.3552 [email protected] Britt Reed, Senior Vice President Tenant Advisory (512) 314.3577 [email protected] Greg Johnson, Vice President Agency Leasing (512) 314.3570 [email protected] Luke Wheeler, Vice President Agency Leasing & Tenant Advisory (512) 314.3553 [email protected] Will Stewart, Vice President Agency Leasing & Tenant Advisory (512) 314.3574 [email protected] Brandon Lester, Vice President Agency Leasing & Tenant Advisory (512) 314.3576 [email protected] Tracy Fike, Associate Tenant Advisory & Agency Leasing (512) 314.5215 [email protected] Josh Delk, Associate Vice President Development & Investment Sales (512) 314.3557 [email protected] Tim Ryan, Development Associate Development & Investment Sales (512) 314.3961 [email protected] Robert Gaston, Executive Vice President Southwest | City Leader (512) 314.3554 [email protected] Karen Judson, Vice President Marketing & Research (512) 314.3560 [email protected]

CONTACT METHODOLOGY Karen Judson The information in this report is the result of a compilation of information on office properties located Vice President in the Austin metropolitan area. This report includes single-tenant and multi-tenant properties 25,000 512.328.5600 SF and larger, excluding condo and medical office facilities and those properties owned and occupied [email protected] by a government agency. Unless otherwise stated, the statistics in this report are monthly, meaning they reflect a ‘snapshot in time’ and are not cumulative.Net Absorption refers to the change in vacant space. Gross Leasing Activity refers to the change in available space, including renewals, new leases, expansions and subleases.

901 S MoPac Expressway, Suite 4-250 T 512.328.5600 F 512.328.9309 Austin, Texas 78746 www.transwestern.com/austin

Copyright © 2016 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein. REAL ESTATE OUTLOOK AUSTIN OFFICE MARKET WATCH DECEMBER 2015

Recent Office Leases OFFICE LEASE STATISTICS :: VACANCY & RENTAL RATE

25.0% $34.00  CBD :: Insurance Zebra 25.0% GROSS RENT PSF ($) VACANCY (%) $34.00 11,645 SF at San Jacinto Center 20.0%20.0% $30.00 $30.00

 Far Northwest :: Superior Access Ins. (renew) 15.0%15.0% $26.00 13,245 SF at River Place Corporate Park $26.00

10.0%10.0%

 North :: St. David’s Healthcare (renew) $22.00 5.0% $22.00 14,638 SF at Exchange Park 5.0%

0.0% QTD $18.00 0.0% $18.00 10 11 12 13 14 15  CBD :: AllClear ID Inc. 33,720 SF at 816 Congress All office buildings larger than 25,000 SF excluding government, medical, user campuses and office condos.

Office Sales Statistics AUSTIN AUSTIN U.S. TRAILING AUSTIN QUARTER TRAILING U.S. Recent Office Sales 12 MO. Q3 2015 TO DATE 12 MO. Q3 2015  Far Northwest :: 7700 Parmer A-D Volume ($ Mil) $2,551.6 $325.0 $691.0 $148,251.6 $36,232.1 4 Class A Office Buildings totaling 950,102 SF No. of Properties 79 12 9 5,942 1,517 Seller: Spear Street Total SF 11,765,460 1,177,607 2,364,495 631,953,147 161,593,212 Buyer: Accesso Partners Average Price/SF $282 $359 N/A $245 $245

Average Cap Rate (Yield) 6.5% 6.5% N/A 6.8% 6.7%

SOURCE: Real Capital Analytics Office Lease Statistics By Submarket NO. OF YTD NET YTD LEASING DIRECT TOTAL CLASS A CLASS B CLASS C AVE NET SUBMARKET BLDGS INVENTORY ABSORPTION ACTIVITY OCCUP. OCCUP. NET RENT NET RENT NET RENT RENT

CBD 82 12,098,572 773,727 1,443,253 94.9% 94.4% $33,57 $25.76 $16.00 $29.96 Central & West Central 77 5,472,059 127,289 352,485 90.4% 90.1% $22.46 $17.20 $15.29 $18.14 North 66 6,601,630 401,396 495,330 95.4% 93.8% $27.13 $14.93 $13.98 $18.94 Northeast & East 66 6,582,440 56,083 170,414 80.8% 80.7% $18.50 $12.71 $9.33 $13.27 Northwest & Far NW 213 16,691,518 874,761 2,217,291 91.8% 90.5% $22.17 $18.78 $16.80 $20.62 Round Rock & Cedar Park 42 2,813,729 34,189 147,983 83.0% 82.6% $18.90 $17.86 $14.00 $17.89 South 42 2,841,270 65,246 155,079 97.0% 96.8$ $22.50 $16.44 $11.90 $16.91 Southeast 22 2,594,234 43,669 49,892 81.0% 81.0% N/A $17.00 $10.35 $14.71 Southwest 126 10,828,559 817,192 1,165,208 91.2% 90.3% $24.73 $20.90 $18.92 $23.64 AUSTIN 736 66,524,011 3,193,552 6,196,935 90.8% 90.1% $25,59 $17.85 $14.12 $21.23

SOURCE: Transwestern, CoStar AUSTIN OFFICE MARKET WATCH DECEMBER 2015

About Transwestern

Transwestern is a privately held, SSAE 16 compliant commercial real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 181 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. For more information, please visit transwestern.com/austin and follow us on Twitter: @TranswesternATX.

SEATTLE

MINNEAPOLIS BOSTON DETROIT MILWAUKEE GREENWICH NEW YORK CHICAGO NEW JERSEY SAN FRANCISCO WALNUT CREEK SALT LAKE SILICON CITY BETHESDA BALTIMORE DENVER VALLEY WASHINGTON DC NORTHERN ST. LOUIS VIRGINIA

LOS ANGELES OKLAHOMA ORANGE COUNTY CITY SAN DIEGO PHOENIX TRANSWESTERN ATLANTA FORT DALLAS WORTH LOCATIONS

HOUSTON AUSTIN SAN ANTONIO NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE Austin Team Members

Ty Puckett, Executive Vice President Development & Investment Sales (512) 314.3572 [email protected] Hale Umstattd, Executive Managing Director Investment Sales & Corp. Services (512) 314.3551 [email protected] Leah Gallagher, Managing Director Investment Sales (512) 314.3571 [email protected] Jeff Rogers, Managing Director Investment Sales - Multifamily (512) 314.5207 [email protected] Chris Stutzman, Managing Director Investment Sales - Multifamily (512) 314.5203 [email protected] Mike Brown, Senior Vice President Agency Leasing & Business Development (512) 314.3552 [email protected] Britt Reed, Senior Vice President Tenant Advisory (512) 314.3577 [email protected] Greg Johnson, Vice President Agency Leasing (512) 314.3570 [email protected] Luke Wheeler, Vice President Agency Leasing & Tenant Advisory (512) 314.3553 [email protected] Will Stewart, Vice President Agency Leasing & Tenant Advisory (512) 314.3574 [email protected] Brandon Lester, Associate Vice President Agency Leasing & Tenant Advisory (512) 314.3576 [email protected] Josh Delk, Associate Vice President Development & Investment Sales (512) 314.3557 [email protected] Will Stewart, Vice President Agency Leasing & Tenant Advisory (512) 314.3574 [email protected] George Jalil, Financial Analyst Investment Sales (512) 314.5206 [email protected] Tim Ryan, Development Associate Development & Investment Sales (512) 314.3961 [email protected] Robert Gaston, Executive Vice President Southwest | City Leader (512) 314.3554 [email protected] Karen Judson, Vice President Marketing & Research (512) 314.3560 [email protected]

CONTACT METHODOLOGY Karen Judson The information in this report is the result of a compilation of information on office Vice President properties located in the Austin metropolitan area. This report includes single-tenant and 512.328.5600 multi-tenant properties 25,000 SF and larger, excluding condo and medical office facilities [email protected] and those properties owned and occupied by a government agency. Net Absorption refers to the change in vacant space. Gross Leasing Activity refers to the change in available space, including renewals, new leases, expansions and subleases.

901 S MoPac Expressway, Suite 4-250 T 512.328.5600 F 512.328.9309 Austin, Texas 78746 www.transwestern.com/austin

Copyright © 2015 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein. REAL ESTATE OUTLOOK AUSTIN OFFICE MARKET WATCH NOVEMBER 2015

Recent Office Leases OFFICE LEASE STATISTICS :: VACANCY & RENTAL RATE

25.0% $34.00  Southwest :: Ketra (renew) 25.0% GROSS RENT PSF ($) VACANCY (%) $34.00 12,550 SF at Barton Creek Plaza III 20.0%20.0% $30.00 $30.00

 Far Northwest :: LDR Spine (renew) 15.0%15.0% $26.00 89,208 SF at Aspen Lake One $26.00

10.0%10.0%

 CBD :: Pivot 3 $22.00 5.0% $22.00 11,102 SF at Chase Bank Tower 5.0%

0.0% QTD $18.00 0.0% $18.00 10 11 12 13 14 15  North :: Regus North Lamar 18,000 SF at Lamar Central All office buildings larger than 25,000 SF excluding government, medical, user campuses and office condos.

Office Sales Statistics AUSTIN AUSTIN U.S. TRAILING AUSTIN QUARTER TRAILING U.S. Recent Office Sales 12 MO. Q3 2015 TO DATE 12 MO. Q3 2015  Northwest :: Enterprise Plaza Volume ($ Mil) $2,552.1 $325.5 $19.8 $147,955.9 $35,908.5 Class B Office Building totaling 50,393 SF No. of Properties 79 12 3 5,917 1,492 Seller: Opre Ent Property LLC Total SF 11,766,170 1,178,317 109,674 629,753,881 159,417,174 Buyer: ASC Management Average Price/SF $282 $360 N/A $245 $245

Average Cap Rate (Yield) 6.5% 6.5% N/A 6.8% 6.7%

SOURCE: Real Capital Analytics Office Lease Statistics By Submarket NO. OF YTD NET YTD LEASING DIRECT TOTAL CLASS A CLASS B CLASS C AVE NET SUBMARKET BLDGS INVENTORY ABSORPTION ACTIVITY OCCUP. OCCUP. NET RENT NET RENT NET RENT RENT

CBD 82 12,098,572 728,356 1,415,345 94.5% 94.1% $33.32 $25.53 $16.00 $29.73 Central & West Central 77 5,472,059 129,216 321,957 90.5% 90.1% $22.22 $17.20 $14.29 $17.86 North 66 6,596,339 379,171 488,894 95.2% 93.5% $27.08 $15.05 $13.98 $19.00 Northeast & East 66 6,582,440 33,394 170,414 80.3% 80.3% $19.50 $12.97 $9.75 $13.67 Northwest & Far NW 210 16,399,984 603,026 2,174,868 91.6% 90.3% $22.01 $18.70 $16.36 $20.46 Round Rock & Cedar Park 40 2,601,239 24,169 147,983 89.4% 88.9% $18.90 $17.83 $14.00 $17.88 South 42 2,841,270 66,614 149,889 97.1% 96.9% $22.50 $16.44 $11.90 $16.91 Southeast 22 2,594,234 44,194 49,892 81.0% 81.0% N/A $17.00 $10.35 $14.71 Southwest 126 10,825,515 761,902 1,138,991 90.8% 89.8% $24.75 $20.39 $17.82 $23.51 AUSTIN 731 66,011,742 2,770,042 6,058,233 90.9% 90.1% $25.51 $17.81 $13.84 $21.14

SOURCE: Transwestern, CoStar AUSTIN OFFICE MARKET WATCH NOVEMBER 2015

About Transwestern

Transwestern is a privately held, SSAE 16 compliant commercial real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 181 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. For more information, please visit transwestern.com/austin and follow us on Twitter: @TranswesternATX.

SEATTLE

MINNEAPOLIS BOSTON DETROIT MILWAUKEE GREENWICH NEW YORK CHICAGO NEW JERSEY SAN FRANCISCO WALNUT CREEK SALT LAKE SILICON CITY BETHESDA BALTIMORE DENVER VALLEY WASHINGTON DC NORTHERN ST. LOUIS VIRGINIA

LOS ANGELES OKLAHOMA ORANGE COUNTY CITY SAN DIEGO PHOENIX TRANSWESTERN ATLANTA FORT DALLAS WORTH LOCATIONS

HOUSTON AUSTIN SAN ANTONIO NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE Austin Team Members

Ty Puckett, Executive Vice President Development & Investment Sales (512) 314.3572 [email protected] Hale Umstattd, Executive Managing Director Investment Sales & Corp. Services (512) 314.3551 [email protected] Leah Gallagher, Managing Director Investment Sales (512) 314.3571 [email protected] Jeff Rogers, Managing Director Investment Sales - Multifamily (512) 314.5207 [email protected] Chris Stutzman, Managing Director Investment Sales - Multifamily (512) 314.5203 [email protected] Mike Brown, Senior Vice President Agency Leasing & Business Development (512) 314.3552 [email protected] Britt Reed, Senior Vice President Tenant Advisory (512) 314.3577 [email protected] Greg Johnson, Vice President Agency Leasing (512) 314.3570 [email protected] Luke Wheeler, Vice President Agency Leasing & Tenant Advisory (512) 314.3553 [email protected] Will Stewart, Vice President Agency Leasing & Tenant Advisory (512) 314.3574 [email protected] Brandon Lester, Associate Vice President Agency Leasing & Tenant Advisory (512) 314.3576 [email protected] Josh Delk, Associate Vice President Development & Investment Sales (512) 314.3557 [email protected] Will Stewart, Vice President Agency Leasing & Tenant Advisory (512) 314.3574 [email protected] George Jalil, Financial Analyst Investment Sales (512) 314.5206 [email protected] Tim Ryan, Development Associate Development & Investment Sales (512) 314.3961 [email protected] Robert Gaston, Executive Vice President Southwest | City Leader (512) 314.3554 [email protected] Karen Judson, Vice President Marketing & Research (512) 314.3560 [email protected]

CONTACT METHODOLOGY Karen Judson The information in this report is the result of a compilation of information on office Vice President properties located in the Austin metropolitan area. This report includes single-tenant and 512.328.5600 multi-tenant properties 25,000 SF and larger, excluding condo and medical office facilities [email protected] and those properties owned and occupied by a government agency. Net Absorption refers to the change in vacant space. Gross Leasing Activity refers to the change in available space, including renewals, new leases, expansions and subleases.

901 S MoPac Expressway, Suite 4-250 T 512.328.5600 F 512.328.9309 Austin, Texas 78746 www.transwestern.com/austin

Copyright © 2015 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein. REAL ESTATE OUTLOOK AUSTIN OFFICE MARKET WATCH OCTOBER 2015

Recent Office Leases OFFICE LEASE STATISTICS :: VACANCY & GROSS RENTAL RATE

25.0% $32.00  North :: Fidelity Brokerage Services 25.0% GROSS RENT PSF ($) VACANCY (%) $32.00 14,517 SF at Domain 7 20.0%20.0% $28.00 $28.00

 Far Northwest :: EA Sports (renew) 15.0%15.0% $24.00 173,381 SF at 7700 Parmer C $24.00

10.0%10.0%

 CBD :: RetailMeNot (renew) $20.00 5.0% $20.00 95,537 SF at 301 Congress 5.0%

0.0% QTD $16.00 0.0% $16.00 09 10 11 12 13 14 15  CBD :: St. Davids Healthcare 20,000 SF at San Jacinto Center All office buildings larger than 25,000 SF excluding government, medical, user campuses and office condos.

Office Sales Statistics AUSTIN AUSTIN U.S. TRAILING AUSTIN QUARTER TRAILING U.S. Recent Office Sales 12 MO. Q3 2015 TO DATE 12 MO. Q3 2015  Southwest :: Westlake Place Volume ($ Mil) $2,598.9 $372.3 $11.6 $141,656.3 $30,107.4 Class B Office Building totaling 61,308 SF No. of Properties 78 11 1 5,572 1,162 Seller: Austin Southwest Office Partners Total SF 11,754,990 1,167,137 54,000 597,716,545 128,598,772 Buyer: Moore & Associates Average Price/SF $278 $253 N/A $249 $262

Average Cap Rate (Yield) 6.4% 6.6% N/A 6.7% 6.4%

SOURCE: Real Capital Analytics Office Lease Statistics By Submarket NO. OF YTD NET YTD LEASING DIRECT TOTAL CLASS A CLASS B CLASS C AVE NET SUBMARKET BLDGS INVENTORY ABSORPTION ACTIVITY OCCUP. OCCUP. NET RENT NET RENT NET RENT RENT

CBD 82 12,098,572 700,802 1,228,377 94.1% 93.8% $33.34 $24.63 $16.00 $27.72 Central & West Central 67 5,303,307 76,686 300,380 92.9% 92.0% $26.19 $15.03 $11.65 $21.42 North 66 6,952,930 343,922 343,922 94.7% 93.4% $25.00 $15.13 $13.50 $22.86 Northeast & East 66 6,547,080 33,185 46,432 80.2% 80.1% $17.50 $19.97 $11.97 $13.58 Northwest & Far NW 210 16,341,657 598,355 1,824,819 91.8% 90.4% $21.97 $18.75 $14.50 $20.84 Round Rock & Cedar Park 40 2,601,329 10,380 42,478 88.7% 88.4% $18.88 $16.00 $14.73 $17.73 South 42 2,841,270 62,496 125,305 97.1% 96.7% $22.58 $14.18 $10.59 $14.71 Southeast 22 2,594,234 29,402 41,267 80.4% 80.4% N/A $18.72 $7.50 $15.35 Southwest 125 10,665,199 480,922 1,049,839 90.1% 88.6% $24.73 $19.39 $17.01 $21.82 AUSTIN 720 65,945,578 2,339,322 5,002,819 90.9% 90.0% $25.40 $16.60 $11.96 $22.27

SOURCE: Transwestern, CoStar AUSTIN OFFICE MARKET WATCH OCTOBER 2015

About Transwestern

Transwestern is a privately held, SSAE 16 compliant commercial real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 181 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. For more information, please visit transwestern.com/austin and follow us on Twitter: @TranswesternATX.

SEATTLE

MINNEAPOLIS BOSTON DETROIT MILWAUKEE GREENWICH NEW YORK CHICAGO NEW JERSEY SAN FRANCISCO WALNUT CREEK SALT LAKE SILICON CITY BETHESDA BALTIMORE DENVER VALLEY WASHINGTON DC NORTHERN ST. LOUIS VIRGINIA

LOS ANGELES OKLAHOMA ORANGE COUNTY CITY SAN DIEGO PHOENIX TRANSWESTERN ATLANTA FORT DALLAS WORTH LOCATIONS

HOUSTON AUSTIN SAN ANTONIO NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE Austin Team Members

Ty Puckett, Executive Vice President Development & Investment Sales (512) 314.3572 [email protected] Hale Umstattd, Executive Managing Director Investment Sales & Corp. Services (512) 314.3551 [email protected] Leah Gallagher, Managing Director Investment Sales (512) 314.3571 [email protected] Jeff Rogers, Managing Director Investment Sales - Multifamily (512) 314.5207 [email protected] Chris Stutzman, Managing Director Investment Sales - Multifamily (512) 314.5203 [email protected] Mike Brown, Senior Vice President Agency Leasing & Business Development (512) 314.3552 [email protected] Britt Reed, Senior Vice President Tenant Advisory (512) 314.3577 [email protected] Greg Johnson, Vice President Agency Leasing (512) 314.3570 [email protected] Luke Wheeler, Vice President Agency Leasing & Tenant Advisory (512) 314.3553 [email protected] Will Stewart, Vice President Agency Leasing & Tenant Advisory (512) 314.3574 [email protected] Brandon Lester, Associate Vice President Agency Leasing & Tenant Advisory (512) 314.3576 [email protected] Josh Delk, Associate Vice President Development & Investment Sales (512) 314.3557 [email protected] Will Stewart, Vice President Agency Leasing & Tenant Advisory (512) 314.3574 [email protected] George Jalil, Financial Analyst Investment Sales (512) 314.5206 [email protected] Tim Ryan, Development Associate Development & Investment Sales (512) 314.3961 [email protected] Robert Gaston, Executive Vice President Southwest | City Leader (512) 314.3554 [email protected] Karen Judson, Vice President Marketing & Research (512) 314.3560 [email protected]

CONTACT METHODOLOGY Karen Judson The information in this report is the result of a compilation of information on office Vice President properties located in the Austin metropolitan area. This report includes single-tenant and 512.328.5600 multi-tenant properties 25,000 SF and larger, excluding condo and medical office facilities [email protected] and those properties owned and occupied by a government agency. Net Absorption refers to the change in vacant space. Gross Leasing Activity refers to the change in available space, including renewals, new leases, expansions and subleases.

901 S MoPac Expressway, Suite 4-250 T 512.328.5600 F 512.328.9309 Austin, Texas 78746 www.transwestern.com/austin

Copyright © 2015 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein. REAL ESTATE OUTLOOK AUSTIN OFFICE MARKET WATCH SEPTEMBER 2015

Recent Office Leases OFFICE LEASE STATISTICS :: VACANCY & GROSS RENTAL RATE

25.0% $32.00  CBD :: Cirrus Logic (prelease) 25.0% GROSS RENT PSF ($) VACANCY (%) $32.00 84,872 SF at Shoal Creek Walk 20.0%20.0% $28.00 $28.00

 Southwest :: Logitech (renew) 15.0%15.0% $24.00 99,047 SF at Two Barton Skwyay $24.00

10.0%10.0%

 CBD :: TechSpace $20.00 5.0% $20.00 28,000 SF at San Jacinto Center 5.0%

0.0% QTD $16.00 0.0% $16.00 09 10 11 12 13 14 1515  Northwest :: Protect America (renew) 46,200 SF at Travesia Corporate Park All office buildings larger than 25,000 SF excluding government, medical, user campuses and office condos.

Office Sales Statistics Recent Office Sales AUSTIN AUSTIN U.S. TRAILING AUSTIN QUARTER TRAILING U.S. 12 MO. Q2 2015 TO DATE 12 MO. Q2 2015  CBD :: 515 & 501 Congress 2 buildings totaling 380,866 SF Volume ($ Mil) $2,885.2 $754.5 $375.1 $144,302.4 $36,182.1 Seller: Wanxiang Corp JV Stream Realty No. of Properties 86 20 9 5,722 1,462 Buyer 515: KBS REIT III Total SF 13,600,017 3,456,051 1,174,940 612,792,962 157,132,621 Buyer 501: AFIAA Average Price/SF $263 $246 N/A $245 $239

Average Cap Rate (Yield) 6.7% 6.6% N/A 6.8% 6.8%

SOURCE: Real Capital Analytics Office Lease Statistics By Submarket NO. OF YTD NET YTD LEASING DIRECT TOTAL CLASS A CLASS B CLASS C AVE NET SUBMARKET BLDGS INVENTORY ABSORPTION ACTIVITY OCCUP. OCCUP. NET RENT NET RENT NET RENT RENT

CBD 82 12,098,572 570,867 1,175,902 93.1% 92.8% $31.85 $24.23 $17.00 $27.92 Central & West Central 76 5,303,307 31,869 266,945 92.6% 91.1% $26.42 $17.06 $11.65 $21.41 North 67 6,619,977 353,155 346,846 94.1% 92.7% $25.00 $15.09 $7.65 $20.15 Northeast & East 65 5,588,123 (29,274) 19,999 75.6% 75.6% $16.89 $12.98 $11.97 $13.54 Northwest & Far NW 210 16,341,657 717,336 1,756,629 89.0% 88.7% $21.95 $18.72 $14.50 $19.99 Round Rock & Cedar Park 40 2,601,329 16,555 42,478 89.0% 88.7% $18.86 $16.00 $14.73 $16.98 South 42 2,841,270 66.918 115.284 97.3% 96.9% $22.50 $14.18 $10.59 $14.82 Southeast 22 2,594,234 33,788 38,566 80.6% 80.6% N/A $15.00 $7.50 $14.80 Southwest 125 10,655,149 360,360 843,724 88.4% 87.5% $24.73 $20.34 $16.94 $22.38 AUSTIN 729 64,653,618 2,121,574 4,606,373 90.2% 89.4% $25.26 $16.46 $11.96 $22.09

SOURCE: Transwestern, CoStar AUSTIN OFFICE MARKET WATCH SEPTEMBER 2015

About Transwestern

Transwestern is a privately held, SSAE 16 compliant commercial real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 181 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. For more information, please visit transwestern.com/austin and follow us on Twitter: @TranswesternATX.

SEATTLE

MINNEAPOLIS BOSTON DETROIT MILWAUKEE GREENWICH NEW YORK CHICAGO NEW JERSEY SAN FRANCISCO WALNUT CREEK SALT LAKE SILICON CITY BETHESDA BALTIMORE DENVER VALLEY WASHINGTON DC NORTHERN ST. LOUIS VIRGINIA

LOS ANGELES OKLAHOMA ORANGE COUNTY CITY SAN DIEGO PHOENIX TRANSWESTERN ATLANTA FORT DALLAS WORTH LOCATIONS

HOUSTON AUSTIN SAN ANTONIO NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE Austin Team Members

Ty Puckett, Executive Vice President Development & Investment Sales (512) 314.3572 [email protected] Hale Umstattd, Executive Managing Director Investment Sales & Corp. Services (512) 314.3551 [email protected] Leah Gallagher, Managing Director Investment Sales (512) 314.3571 [email protected] Jeff Rogers, Managing Director Investment Sales - Multifamily (512) 314.5207 [email protected] Chris Stutzman, Managing Director Investment Sales - Multifamily (512) 314.5203 [email protected] Mike Brown, Senior Vice President Agency Leasing & Business Development (512) 314.3552 [email protected] Britt Reed, Senior Vice President Tenant Advisory (512) 314.3577 [email protected] Greg Johnson, Vice President Agency Leasing (512) 314.3570 [email protected] Luke Wheeler, Vice President Agency Leasing & Tenant Advisory (512) 314.3553 [email protected] Will Stewart, Vice President Agency Leasing & Tenant Advisory (512) 314.3574 [email protected] Brandon Lester, Associate Vice President Agency Leasing & Tenant Advisory (512) 314.3576 [email protected] Josh Delk, Associate Vice President Development & Investment Sales (512) 314.3557 [email protected] Will Stewart, Vice President Agency Leasing & Tenant Advisory (512) 314.3574 [email protected] George Jalil, Financial Analyst Investment Sales (512) 314.5206 [email protected] Tim Ryan, Development Associate Development & Investment Sales (512) 314.3961 [email protected] Robert Gaston, Executive Vice President Southwest | City Leader (512) 314.3554 [email protected] Karen Judson, Vice President Marketing & Research (512) 314.3560 [email protected]

CONTACT METHODOLOGY Karen Judson The information in this report is the result of a compilation of information on office Vice President properties located in the Austin metropolitan area. This report includes single-tenant and 512.328.5600 multi-tenant properties 25,000 SF and larger, excluding condo and medical office facilities [email protected] and those properties owned and occupied by a government agency. Net Absorption refers to the change in vacant space. Gross Leasing Activity refers to the change in available space, including renewals, new leases, expansions and subleases.

901 S MoPac Expressway, Suite 4-250 T 512.328.5600 F 512.328.9309 Austin, Texas 78746 www.transwestern.com/austin

Copyright © 2015 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein. REAL ESTATE OUTLOOK AUSTIN OFFICE MARKET WATCH AUGUST 2015

Recent Office Leases OFFICE LEASE STATISTICS :: VACANCY & GROSS RENTAL RATE

 CBD :: Gerson Lehrman Group (expansion) 25.0% $32.00 25.0% $32.00 41,803 SF at 301 Congress GROSS RENT PSF ($) VACANCY (%)

20.0%20.0% $28.00 $28.00  Northwest :: Blackbaud (expansion) 20,041 SF at Domain 3 15.0%15.0% $24.00 $24.00

10.0%10.0%  CBD :: Galvanize $20.00 5.0% $20.00 23,592 SF at Northshore (under construction) 5.0%

0.0% QTD $16.00 0.0% $16.00  CBD :: Facebook (expansion) 09 10 11 12 13 14 1515

58,970 SF at 300 West 6th All office buildings larger than 25,000 SF excluding government, medical, user campuses and office condos.

Office Sales Statistics AUSTIN AUSTIN U.S. Recent Office Sales TRAILING AUSTIN QUARTER TRAILING U.S. 12 MO. Q2 2015 TO DATE 12 MO. Q2 2015  Northwest :: IBM Broadmoor Campus Volume ($ Mil) $2,285.4 $618.7 $335.0 $143,380.6 $35,802.4 7-Building office campus totaling 1,112,236 SF No. of Properties 81 17 7 5,695 1,438 Buyer: Brandywine Realty Trust Seller: IBM / Brandywine JV Total SF 10,592,834 2,211,320 1,079,657 608,612,550 154,406,884 Buyout of IBM’s 50% interest in the JV Average Price/SF $269 $300 N/A $245 $241 Average Cap Rate (Yield) 6.7% 6.8% N/A 6.8% 6.8%

SOURCE: Real Capital Analytics Office Lease Statistics By Submarket NO. OF YTD NET YTD LEASING DIRECT TOTAL CLASS A CLASS B CLASS C AVE NET SUBMARKET BLDGS INVENTORY ABSORPTION ACTIVITY OCCUP. OCCUP. NET RENT NET RENT NET RENT RENT

CBD 72 11,213,792 739,117 753,304 92.4% 92.0% $28.69 $23.73 $17.98 $27.03 Central & West Central 55 3,502,425 (27,401) 148,182 92.3% 89.2% $25.34 $17.36 $11.65 $20.89 North 68 6,818,758 260,267 378,623 93.2% 91.6% $23.79 $15.79 $7.65 $20.16 Northeast & East 60 5,013,686 (62,286) 17,309 72.7% 72.6% N/A $12.97 $11.97 $12.58 Northwest & Far NW 204 16,080,046 252,239 1,235,466 89.5% 88.1% $21.71 $18.66 $14.50 $19.85 Round Rock & Cedar Park 24 1,692,728 46,575 33,854 89.5% 88.1% $21.00 $15.63 N/A $17.10 South 32 2,182,456 14,425 53,797 97.9% 97.5% $22.50 $14.18 $10.59 $14.82 Southeast 16 1,815,168 31,689 27,789 72.1% 72.1% N/A $15.00 $7.50 $14.80 Southwest 114 9,171,399 265,851 698,919 88.3% 87.3% $24.22 $20.09 $12.15 $22.68 AUSTIN 645 57,490,458 1,520,476 3,347,243 88.8% 87.7% $23.53 $16.28 $11.96 $20.42

SOURCE: Transwestern, CoStar AUSTIN OFFICE MARKET WATCH AUGUST 2015

About Transwestern

Transwestern is a privately held, SSAE 16 compliant commercial real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 181 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. For more information, please visit transwestern.com/austin and follow us on Twitter: @TranswesternATX.

SEATTLE

MINNEAPOLIS BOSTON DETROIT MILWAUKEE GREENWICH NEW YORK CHICAGO NEW JERSEY SAN FRANCISCO WALNUT CREEK SALT LAKE SILICON CITY BETHESDA BALTIMORE DENVER VALLEY WASHINGTON DC NORTHERN ST. LOUIS VIRGINIA

LOS ANGELES OKLAHOMA ORANGE COUNTY CITY SAN DIEGO PHOENIX TRANSWESTERN ATLANTA FORT DALLAS WORTH LOCATIONS

HOUSTON AUSTIN SAN ANTONIO NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE Austin Team Members

Ty Puckett, Executive Vice President Development & Investment Sales (512) 314.3572 [email protected] Hale Umstattd, Executive Managing Director Investment Sales & Corp. Services (512) 314.3551 [email protected] Leah Gallagher, Managing Director Investment Sales (512) 314.3571 [email protected] Jeff Rogers, Managing Director Investment Sales - Multifamily (512) 314.5207 [email protected] Chris Stutzman, Managing Director Investment Sales - Multifamily (512) 314.5203 [email protected] Mike Brown, Senior Vice President Agency Leasing & Business Development (512) 314.3552 [email protected] Britt Reed, Senior Vice President Tenant Advisory (512) 314.3577 [email protected] Greg Johnson, Vice President Agency Leasing (512) 314.3570 [email protected] Luke Wheeler, Vice President Agency Leasing & Tenant Advisory (512) 314.3553 [email protected] Will Stewart, Vice President Agency Leasing & Tenant Advisory (512) 314.3574 [email protected] Brandon Lester, Associate Vice President Agency Leasing & Tenant Advisory (512) 314.3576 [email protected] Josh Delk, Associate Vice President Development & Investment Sales (512) 314.3557 [email protected] Will Stewart, Vice President Agency Leasing & Tenant Advisory (512) 314.3574 [email protected] George Jalil, Financial Analyst Investment Sales (512) 314.5206 [email protected] Tim Ryan, Development Associate Development & Investment Sales (512) 314.3961 [email protected] Robert Gaston, Executive Vice President Southwest | City Leader (512) 314.3554 [email protected] Karen Judson, Vice President Marketing & Research (512) 314.3560 [email protected]

CONTACT METHODOLOGY Karen Judson The information in this report is the result of a compilation of information on office Vice President properties located in the Austin metropolitan area. This report includes single-tenant and 512.328.5600 multi-tenant properties 25,000 SF and larger, excluding condo and medical office facilities [email protected] and those properties owned and occupied by a government agency. Net Absorption refers to the change in vacant space. Gross Leasing Activity refers to the change in available space, including renewals, new leases, expansions and subleases.

901 S MoPac Expressway, Suite 4-250 T 512.328.5600 F 512.328.9309 Austin, Texas 78746 www.transwestern.com/austin

Copyright © 2015 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein. REAL ESTATE OUTLOOK AUSTIN OFFICE MARKET WATCH FEBRUARY 2015

Recent Office Leases OFFICE LEASE STATISTICS :: VACANCY & GROSS RENTAL RATE

 Northwest :: Indeed.com 25.0% $32.00 25.0% $32.00 213,196 SF at Champion Office Park GROSS RENT PSF ($) VACANCY (%)

20.0%20.0% $28.00 $28.00  CBD :: U.S. Capital Advisors 12,782 SF at 300 West Sixth 15.0%15.0% $24.00 $24.00

10.0%10.0%  Northwest :: ARA Diagnostics $20.00 5.0% $20.00 30,578 SF at Quarry Oaks Atrium I 5.0%

0.0% QTD $16.00 0.0% $16.00  North :: Educare Community Living 09 10 11 12 13 14

12,782 SF at Chase Park All office buildings larger than 25,000 SF excluding government, medical, user campuses and office condos.

Office Sales Statistics Recent Office Sales AUSTIN AUSTIN U.S. TRAILING AUSTIN QUARTER TRAILING U.S.  CBD :: Lavaca Plaza 12 MO. Q4 2014 TO DATE 12 MO. Q4 2014

Class B office building totaling 118,643 SF Volume ($ Mil) $1,822.2 $818.7 $170.8 $117,698.6 $35,775.7 Buyer: Unico No. of Properties 80 28 8 4,482 1,345 Seller: Brickman Associates Total SF 13,571,988 4,639,132 708,457 530,258,812 159,204,510 Average Price/SF $258 $277 N/A $237 $226

Average Cap Rate (Yield) 6.4% 5.8% N/A 6.8% 6.7%

SOURCE: Real Capital Analytics Office Lease Statistics By Submarket NO. OF YTD NET YTD LEASING DIRECT TOTAL CLASS A CLASS B CLASS C AVE NET SUBMARKET BLDGS INVENTORY ABSORPTION ACTIVITY OCCUP. OCCUP. NET RENT NET RENT NET RENT RENT

CBD 66 10,424,742 49,965 81,217 93.3% 92.9% $27.31 $23.98 $18.00 $26.96 Central & West Central 55 3,602,553 18,242 12,802 91.8% 90.6% $24.57 $19.09 $13.29 $20.74 North 66 6,318,544 (349) 67,232 91.5% 89.7% $24.26 $15.91 N/A $19.94 Northeast & East 54 3,875,151 (21,505) 3,723 84.3% 84.3% N/A $15.74 $10.50 $12.58 Northwest & Far NW 204 16.083,201 73,796 202,966 89.3% 87.6% $20.85 $19.04 $16.69 $19.95 Round Rock & Cedar Park 22 1,586,807 (8,813) 3,371 91.3% 88.8% $19.14 $15.34 N/A $16.18 South 32 2,172,103 (3,495) 480 96.7% 96.6% $21.50 $14.18 $9.46 $16.50 Southeast 17 1,749,304 (2,523) 8,206 69.1% 69.1% N/A $15.50 N/A $15.50 Southwest 107 8,380,475 (29,377) 14,087 94.0% 92.3% $24.48 $19.62 $18.00 $22.46 AUSTIN 624 54,192,880 75,941 394,084 90.6% 89.4% $23.34 $17.26 $9.71 $20.46

SOURCE: Transwestern, CoStar AUSTIN OFFICE MARKET WATCH FEBRUARY 2015

About Transwestern

Transwestern is a privately held, SSAE 16 compliant commercial real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 181 offices in 40 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate. For more information, please visit transwestern.com/austin and follow us on Twitter: @TranswesternATX.

SEATTLE

MINNEAPOLIS BOSTON DETROIT MILWAUKEE GREENWICH NEW YORK CHICAGO NEW JERSEY SAN FRANCISCO WALNUT CREEK SALT LAKE SILICON CITY BETHESDA BALTIMORE DENVER VALLEY WASHINGTON DC NORTHERN ST. LOUIS VIRGINIA

LOS ANGELES OKLAHOMA ORANGE COUNTY CITY SAN DIEGO PHOENIX TRANSWESTERN ATLANTA FORT DALLAS WORTH LOCATIONS

HOUSTON AUSTIN SAN ANTONIO NEW ORLEANS ORLANDO FORT LAUDERDALE MIAMI-DADE Austin Team Members

Ty Puckett, Executive Vice President Development & Investment Sales (512) 314.3572 [email protected] Hale Umstattd, Executive Managing Director Investment Sales & Corp. Services (512) 314.3551 [email protected] Leah Gallagher, Managing Director Investment Sales (512) 314.3571 [email protected] Jeff Rogers, Managing Director Investment Sales - Multifamily (512) 314.5207 [email protected] Chris Stutzman, Managing Director Investment Sales - Multifamily (512) 314.5203 [email protected] Mike Brown, Senior Vice President Agency Leasing & Business Development (512) 314.3552 [email protected] Britt Reed, Senior Vice President Tenant Advisory (512) 314.3577 [email protected] Greg Johnson, Vice President Agency Leasing (512) 314.3570 [email protected] Luke Wheeler, Vice President Agency Leasing & Tenant Advisory (512) 314.3553 [email protected] Brandon Lester, Associate Vice President Agency Leasing & Tenant Advisory (512) 314.3576 [email protected] Josh Delk, Associate Vice President Development & Investment Sales (512) 314.3557 [email protected] Will Stewart, Associate Vice President Agency Leasing & Tenant Advisory (512) 314.3574 [email protected] Tim Ryan, Development Associate Development & Investment Sales (512) 314.3961 [email protected] Robert Gaston, Executive Vice President Southwest | City Leader (512) 314.3554 [email protected] Karen Judson, Vice President Marketing & Research (512) 314.3560 [email protected]

CONTACT METHODOLOGY Karen Judson The information in this report is the result of a compilation of information on office Vice President properties located in the Austin metropolitan area. This report includes single-tenant and 512.328.5600 multi-tenant properties 25,000 SF and larger, excluding condo and medical office facilities [email protected] and those properties owned and occupied by a government agency. Net Absorption refers to the change in vacant space. Gross Leasing Activity refers to the change in available space, including renewals, new leases, expansions and subleases.

901 S MoPac Expressway, Suite 4-250 T 512.328.5600 F 512.328.9309 Austin, Texas 78746 www.transwestern.com/austin

Copyright © 2015 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein. REAL ESTATE OUTLOOK AUSTIN OFFICE MARKET WATCH OCTOBER 2014

Recent Office Leases OFFICE LEASE STATISTICS :: VACANCY & GROSS RENTAL RATE

 Southwest :: Coherent Logix (renew) 25.0% $32.00 25.0% $32.00 18,586 SF at Cityview 3 GROSS RENT PSF ($) VACANCY (%)

20.0%20.0% $28.00 $28.00  Northwest :: E2Open (expansion) 17,147 SF at Great Hills Plaza 15.0%15.0% $24.00 $24.00

10.0%10.0%  Northwest :: TaxTiger $20.00 5.0% $20.00 16,063 SF at Canyon Hills Office Center 5.0%

0.0% QTD $16.00 0.0% $16.00  CBD :: Whole Foods Corporation 09 10 11 12 13 14

40,971 SF at Offices at the Bowie All office buildings larger than 25,000 SF excluding government, medical, user campuses and office condos.

Office Sales Statistics Recent Office Sales AUSTIN AUSTIN U.S. TRAILING AUSTIN QUARTER TRAILING U.S.  North :: Centennial Towers 12 MO. Q3 2014 TO DATE 12 MO. Q3 2014

Class B office building totaling 155,604 SF Volume ($ Mil) $1,586.0 $347.6 $0 $115,907.6 $25,591.2 Buyer: Taurus Investment Holdings No. of Properties 67 15 0 4,062 853 Seller: Braun Enterprises Total SF 11,529,326 1,633,168 0 532,452,962 105,311,276 Average Price/SF $259 $274 N/A $240 $251

Average Cap Rate (Yield) 6.5% N/A N/A 6.9% 6.7%

SOURCE: Real Capital Analytics Office Lease Statistics By Submarket NO. OF YTD NET YTD LEASING DIRECT TOTAL CLASS A CLASS B CLASS C AVE NET SUBMARKET BLDGS INVENTORY ABSORPTION ACTIVITY OCCUP. OCCUP. NET RENT NET RENT NET RENT RENT

CBD 64 10,098,584 319,574 1,083,801 92.1% 91.5% $27.40 $19.64 $18.00 $26.99 Central & West Central 55 3,544,255 166,470 221,793 90.7% 89.7% $24.50 $18.79 $11.25 $20.24 North 65 6,172,666 157,135 234,070 91.3% 89.6% $23.55 $15.32 N/A $19.27 Northeast & East 53 3,815,151 163,391 97.058 85.0% 85.0% N/A $12.99 $11.43 $12.60 Northwest & Far NW 203 15,907,557 142,625 1,008,285 89.5% 88.2% $20.36 $17.95 $12.00 $17.78 Round Rock & Cedar Park 22 1,586,807 57,437 34,768 91.3% 90.6% $19.00 $16.21 N/A $16.96 South 34 2,198,343 15,407 56,712 96.6% 96.6% $12.50 $14.18 $12.00 $16.50 Southeast 17 1,749,304 57,273 36,234 69.5% 69.4% N/A $16.75 $15.50 $15.94 Southwest 105 8,287,232 346,060 632,736 93.6% 91.0% $24.23 $19.18 N/A $22.60 AUSTIN 617 53,359,939 1,425,372 3,405,457 90.3% 89.1% $23.16 $16.45 $9.89 $20.66

SOURCE: Transwestern, CoStar REAL ESTATE OUTLOOK AUSTIN OFFICE MARKET WATCH JULY 2014

Recent Office Leases OFFICE LEASE STATISTICS :: VACANCY & GROSS RENTAL RATE

 CBD :: Main Street Hub 25.0% $32.00 25.0% $32.00 32,674 SF at One American Center GROSS RENT PSF ($) VACANCY (%)

20.0%20.0% $28.00 $28.00  Northwest :: Triple Crown 10,326 SF at Avallon IV 15.0%15.0% $24.00 $24.00

10.0%10.0%  Southwest :: Teradyne Inc. (renew) $20.00 5.0% $20.00 13,454 SF at Monterey Oaks Corp Center 5.0%

0.0% QTD $16.00 0.0% $16.00  Southwest :: VMWare (renew) 09 10 11 12 13 14

15,528 SF at 3900 San Clemente All office buildings larger than 25,000 SF excluding government, medical, user campuses and office condos.

Office Sales Statistics Recent Office Sales AUSTIN AUSTIN U.S. TRAILING AUSTIN QUARTER TRAILING U.S.  Southwest :: Barton Creek Plaza I 12 MO. Q2 2014 TO DATE 12 MO. Q2 2014

A value office building totaling 74,505 SF Volume ($ Mil) $1,762.7 $99.4 $0 $108,065.8 $20,551.5 Buyer: TA Associates No. of Properties 64 8 0 3,854 713 Seller: Barton Creek Plaza LTD. Total SF 12,340,007 510,707 0 511,944,725 85,514,817 Average Price/SF $240 N/A N/A $238 $263

Average Cap Rate (Yield) 6.5% N/A N/A 6.9% 6.7%

SOURCE: Real Capital Analytics Office Lease Statistics By Submarket NO. OF YTD NET YTD LEASING DIRECT TOTAL CLASS A CLASS B CLASS C AVE NET SUBMARKET BLDGS INVENTORY ABSORPTION ACTIVITY OCCUP. OCCUP. NET RENT NET RENT NET RENT RENT

CBD 64 10,096,625 195,215 476,714 90.5% 89.9% $26.79 $21.58 $13.00 $26.03 Central & West Central 54 3,324,924 72,606 128,771 89.2% 88.1% $23.59 $19.10 $11.55 $20.68 North 59 5,485,809 54,079 213,138 90.1% 88.3% $20.68 $15.36 N/A $19.16 Northeast & East 48 3,217,059 18,658 78,835 79.8% 79.8% N/A $12.82 $11.43 $12.49 Northwest & Far NW 204 15,916,320 161,666 598,038 89.8% 88.8% $20.12 $17.12 $12.00 $19.37 Round Rock & Cedar Park 22 1,586,807 15,962 13,565 88.8% 87.9% $19.00 $14.02 N/A $15.15 South 34 2,230,392 15,036 38,055 96.6% 96.5% $21.50 $14.18 $12.00 $16.50 Southeast 16 1,486,072 7,334 26,512 62.4% 62.4% N/A $16.75 $15.50 $15.94 Southwest 108 8,472,925 72,188 372,705 92.1% 89.7% $23.99 $18.14 $18.00 $21.83 AUSTIN 609 51,816,933 612,744 1,946,333 89.1% 88.1% $22.62 $15.92 $10.28 $20.11

SOURCE: Transwestern, CoStar REAL ESTATE OUTLOOK AUSTIN OFFICE MARKET WATCH JUNE 2014

Recent Office Leases OFFICE LEASE STATISTICS :: VACANCY & GROSS RENTAL RATE

 CBD :: SpareFoot 25.0% $32.00 25.0% $32.00 24,667 SF at Perry Brooks Tower GROSS RENT PSF ($) VACANCY (%)

20.0%20.0% $28.00 $28.00  Southeast :: PPD (renew) 224,979 SF at MetCenter 10 15.0%15.0% $24.00 $24.00

10.0%10.0%  Northwest :: IXIA (renew) $20.00 5.0% $20.00 62,752 SF at Prominent Pointe II 5.0%

0.0% QTD $16.00 0.0% $16.00  Central :: Google Inc. 09 10 11 12 13 14

49,953 SF at University Park All office buildings larger than 25,000 SF excluding government, medical, user campuses and office condos.

Office Sales Statistics Recent Office Sales AUSTIN AUSTIN U.S. TRAILING AUSTIN QUARTER TRAILING U.S.  Far Northwest :: Crossings at Lakeline I-II 12 MO. Q1 2014 TO DATE 12 MO. Q1 2014

2 value office buildings totaling 232,274 SF Volume ($ Mil) $2,059.2 $269.2 $90.2 $109,432.8 $23,346.9 Buyer: Brandywine Realty Trust No. of Properties 72 14 6 3,941 944 Seller: O’Connor Capital / Simmons Vedder Total SF 13,917,480 3,575,341 467,497 529,250,258 117,548,249 Average Price/SF $221 $234 N/A $230 $231

Average Cap Rate (Yield) 6.5% 6.3% N/A 6.9% 6.8%

SOURCE: Real Capital Analytics Office Lease Statistics By Submarket NO. OF YTD NET YTD LEASING DIRECT TOTAL CLASS A CLASS B CLASS C AVE NET SUBMARKET BLDGS INVENTORY ABSORPTION ACTIVITY OCCUP. OCCUP. NET RENT NET RENT NET RENT RENT

CBD 64 10,080,357 175,628 460,966 90.4% 89.9% $26.41 $21.64 $13.00 $25.95 Central & West Central 55 3,571,793 82,031 110,832 89.4% 88.4% $23.43 $18.98 $12.13 $20.67 North 56 5,217,308 (22,485) 86,446 90.4% 88.5% $18.45 $14.52 N/A $15.49 Northeast & East 50 3,568,107 49,109 44,604 81.8% 81.8% N/A $12.82 $10.97 $12.39 Northwest & Far NW 204 15,890,175 261,205 467,772 89.9% 88.9% $20.03 $17.03 $12.00 $19.21 Round Rock & Cedar Park 21 1,500,807 (2,562) 8,546 92.7% 91.8% $19.00 $13.00 N/A $15.10 South 33 2,204,103 15,036 36,973 96.5% 96.4% $21.50 $14.35 $11.05 $21.05 Southeast 17 1,641,011 (198,038) 20,143 65.4% 65.4% N/A $15.50 N/A $15.50 Southwest 106 8,337,105 58,826 319,425 91.5% 89.1% $23.66 $17.87 $13.00 $21.60 AUSTIN 606 52,010,767 418,750 1,555,707 89.3% 88.2% $22.46 $15.75 $10.05 $20.03

SOURCE: Transwestern, CoStar Industrial MARKETWATCH

______MARKETWATCH

Oce MARKETWATCH

Multifamily AUSTIN OFFICE MARKETWA3.2014TCH

Retail RECENT OFFICE LEASES OFFICE LEASE STATISTICS

 North :: Pape Dawson (renew/expansion) 25.0% $32.00 MARKEVacancyTW (%) ATCH 13,432 sf at Exchange Park Gross Rent PSF ($) 20.0% ______ Southwest :: Cloud Emperium Games (sublease) $28.00 14,293 sf at Hill Country Galleria 15.0%

 North :: SaleAMP $24.00 13,711 sf at Chase Northcross 10.0% MARKETWATCH  Southwest :: American Assoc. of Nurse Practitioners 13,969 sf at Barton Oaks Plaza I $20.00 Economy 5.0%

RECENT OFFICE SALES 0.0% $16.00  Far Northwest :: Aspen Lake & Tower of the Hills MARKETWATCH 1 Class A/1 Class B Office Bldg totaling 380,742 square feet Buyer: Fortis / Seller: Crimson Real Estate Fund/USAA All Austin Office Buildings larger than 25,000 SF excluding government buildings, medical and user campuses.

OFFICE LEASE STATISTICS BY SUBMARKET YTD Gross No. of Total Direct Direct Total Total YTD Net* Net (NNN) Quoted Rent PSF Submarket Leasing Buildings SF Vacant (SF) Occupancy Vacant (SF) Occupancy Absorption Activity* Class A Class B Class C Average CBD 64 10,080,357 1,098,732 89.1% 1,188,189 88.2% 6,566 268,955 $26.17 $19.94 $13.28 $25.52 Central & West Central 55 3,571,780 436,801 87.8% 472,390 86.8% 24,990 16,829 $23.21 $18.40 $11.37 $20.66 North 47 4,654,202 429,390 90.8% 481,891 89.6% 37,013 26,534 $18.94 $14.72 N/A $16.00 Northeast & East 48 3,446,780 650,192 81.1% 668,415 80.6% 26,132 9,913 N/A $14.05 $11.51 $13.47 Northwest & Far Northwest 199 15,538,426 1,893,398 87.8% 2,058,795 86.8% (304,997) 180,082 $19.74 $16.40 $14.00 $18.69 Round Rock & Cedar Park 21 1,500,807 107,532 92.8% 121,401 91.9% (239) 0 $18.50 $13.38 N/A $14.17 South 33 2,202,563 73,913 96.6% 85,786 96.1% (1,371) 7,115 $21.00 $20.73 $11.13 $20.87 Southeast 17 1,784,606 746,233 58.2% 746,233 58.2% (210,649) 5,609 N/A $17.53 N/A $17.53 Southwest 106 8,333,625 791,199 90.5% 883,627 89.4% 80,396 68,128 $20.50 $17.24 $13.00 $19.41 TOTAL 590 51,113,146 6,227,390 87.8% 6,706,727 86.9% (342,159) 583,165 $21.85 $15.98 $12.13 $19.87 Survey includes Austin Office Buildings larger than 25,000 SF and excludes government buildings, medical office and user campuses. * Net Absorption refers to the change in vacant space. Gross Leasing Activity refers to the change in available space, including renewals, leases & subleases. 1431 Austin Submarkets RR

CP 45 734

OFFICE SALES STATISTICS FNW 130 1 Austin MSA United States 1825 685

Trailing 12 Last Quarter Quarter-To- Trailing 12 Last Quarter Lake 183 Travis 620 290 Months (4Q13) Date Months (4Q13) 2222 NW NE Volume ($ Mil) $2,218.1 $917.3 $265.8 $101,897.8 $37,410.9 N

290 No. of Properties 66 25 14 3,681 1,173 360 2244 WC E Total SF 12,026,639 5,422,196 3,575,341 483,508,045 168,206,942 L1 C 183 969 SW CBD

71 Average Price/SF $215 $232 N/A $227 $238 130 290 71 SE 973 290 1826

275 Average Cap Rate (Yield) 6.6% 6.4% N/A 6.9% 6.9% 183 S 71 45 Source: Real Capital Analytics

1826

45

967 1327 Industrial MARKETWATCH

______MARKETWATCH

Oce MARKETWATCH

Multifamily AUSTIN OFFICE MARKETWA1.2014TCH

Retail RECENT OFFICE LEASES OFFICE LEASE STATISTICS

 North :: Jacobs Engineering 25.0% $32.00 MARKETWVacancyA (%)TCH 27,775 sf at Chase Park Gross Rent PSF ($) 20.0% ______ Southwest :: Reddwerks Corporation $28.00 19,105 sf at Cityview Center 15.0%

 Far Northwest :: Bankers Toolbox $24.00 22,963 sf at Riata Corporate Park 3 10.0% MARKETWATCH  Southwest :: Three Rivers 21,070 sf at The Overwatch Building $20.00 Economy 5.0%

RECENT OFFICE SALES 0.0% $16.00  Far Northwest :: Four Points Centre MARKETWATCH 2 Class A Office Buildings totaling 192,000 square feet Buyer: Brandywine Realty / Seller: Parkway Properties All Austin Office Buildings larger than 25,000 SF excluding government buildings, medical and user campuses.

OFFICE LEASE STATISTICS BY SUBMARKET 4Q13 Gross No. of Total Direct Direct Total Total 4Q13 Net* Net (NNN) Quoted Rent PSF Submarket Leasing Buildings SF Vacant (SF) Occupancy Vacant (SF) Occupancy Absorption Activity* Class A Class B Class C Average CBD 63 9,965,357 1,059,601 89.4% 1,112,747 88.8% 47,574 945,765 $26.20 $19.27 $13.04 $25.52 Central & West Central 55 3,571,150 458,649 87.2% 498,748 86.0% (23,475) 353,410 $23.20 $17.38 $11.37 $20.51 North 47 4,650,435 477,539 89.7% 535,910 88.5% 125,896 575,183 $19.03 $14.43 N/A $15.83 Northeast & East 47 3,424,009 658,213 80.8% 721,997 78.9% (32,444) 215,796 N/A $11.81 $9.95 $11.50 Northwest & Far Northwest 198 15,514,673 1,995,168 87.1% 2,084,799 86.6% 557,999 2,110,844 $19.21 $16.99 $15.00 $18.52 Round Rock & Cedar Park 20 1,473,219 106,435 92.8% 120,304 91.8% 260,452 270,820 $15.23 $13.58 N/A $14.32 South 33 2,233,303 77,266 96.5% 88,939 96.0% 58,977 150,496 $21.00 $18.00 $10.18 $16.50 Southeast 17 1,780,993 756,533 57.5% 756,533 57.5% 20,870 130,789 N/A $17.43 N/A $17.43 Southwest 107 8,361,446 969,691 88.4% 1,026,728 87.7% 68,207 1,131,890 $20.60 $16.86 $13.00 $19.39 TOTAL 587 50,974,585 6,559,095 87.1% 6,946,705 86.4% 1,084,056 5,884,993 $21.67 $15.38 $10.79 $19.54 Survey includes Austin Office Buildings larger than 25,000 SF and excludes government buildings, medical office and user campuses. * Net Absorption refers to the change in vacant space. Gross Leasing Activity refers to the change in available space, including renewals, leases & subleases. 1431 Austin Submarkets RR

CP 45 734

OFFICE SALES STATISTICS FNW 130 1 Austin MSA United States 1825 685

Trailing 12 Last Quarter Quarter-To- Trailing 12 Last Quarter Lake 183 Travis 620 290 Months (4Q13) Date Months (4Q13) 2222 NW NE Volume ($ Mil) $2,005.2 $729.7 $0.0 $93,759.4 $29,363.8 N

290 No. of Properties 56 17 0 3,342 859 360 2244 WC E Total SF 11,074,069 4,588,126 0 445,189,153 133,611,046 L1 C 183 969 SW CBD

71 Average Price/SF $212 $239 N/A $229 $252 130 290 71 SE 973 290 1826

275 Average Cap Rate (Yield) N/A N/A N/A 6.9% 6.5% 183 S 71 45 Source: Real Capital Analytics

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967 1327 Industrial MARKETWATCH

______MARKETWATCH

Oce MARKETWATCH

Multifamily AUSTIN OFFICE MARKETWA03.2013TCH

Retail RECENT OFFICE LEASES OFFICE LEASE STATISTICS

 CBD :: Tableau Software 25.0% $32.00 MARKETWVacancyA (%)TCH 18,080 sf at One American Center Gross Rent PSF ($) 20.0% ______ Southwest :: Bluepoint Games $28.00 11,800 sf at Plaza on the Lake 15.0%

 CBD :: LIN Media $24.00 23,931 sf at Austin Centre 10.0% MARKETWATCH  Far Northwest :: BigCommerce.com 32,957 sf at Four Points Centre $20.00 Economy 5.0%

RECENT OFFICE SALES 0.0% $16.00  Southwest :: Barton Oaks Plaza I MARKETWATCH 99,583 sf Class A Office Building Buyer: MIG Real Estate / Seller: GID All Austin Office Buildings larger than 25,000 SF excluding government buildings, medical and user campuses.

OFFICE LEASE STATISTICS BY SUBMARKET YTD Gross No. of Total Direct Direct Total Total YTD Net* Net (NNN) Quoted Rent PSF Submarket Leasing Buildings SF Vacant (SF) Occupancy Vacant (SF) Occupancy Absorption Activity* Class A Class B Class C Average CBD 61 10,047,206 1,118,169 88.9% 1,198,725 88.1% (118,280) 251,161 $26.29 $19.73 $18.95 $25.52 Central & West Central 57 3,528,884 423,674 88.0% 442,592 87.5% (30,687) 44,385 $20.41 $14.45 $10.99 $17.51 North 47 4,704,607 562,729 88.0% 509,723 89.2% 40,600 249,345 $19.44 $13.42 N/A $15.01 Northeast & East 46 3,276,654 618,109 81.1% 626,109 80.9% 2,926 7,431 N/A $14.15 $8.96 $11.17 Northwest & Far Northwest 200 16,025,336 2,222,177 86.1% 2,276,373 85.8% 1,533 538,519 $18.48 $16.23 N/A $17.90 Round Rock & Cedar Park 17 1,234,993 224,657 81.8% 232,551 81.2% 63,805 78,471 $16.50 $13.51 N/A $14.23 South 32 2,067,162 112,224 94.6% 117,912 94.3% 18,920 33,668 N/A $18.99 $14.50 $17.11 Southeast 13 1,070,278 281,732 73.7% 281,732 73.7% 7,647 7,647 N/A $13.00 N/A $13.00 Southwest 108 8,364,820 858,945 89.7% 865,659 89.7% 74,109 353,995 $20.74 $15.23 $9.88 $19.11 TOTAL 581 50,319,940 6,422,416 87.2% 6,551,376 87.0% 60,573 1,564,622 $20.91 $15.23 $9.88 $19.11 Survey includes Austin Office Buildings larger than 25,000 SF and excludes government buildings, medical office and user campuses. * Net Absorption refers to the change in vacant space. Gross Leasing Activity refers to the change in available space, including renewals, leases & subleases. 1431 Austin Submarkets RR

CP 45 734

OFFICE SALES STATISTICS FNW 130 1 Austin MSA United States 1825 685

Trailing 12 Last Quarter Quarter-To Trailing 12 Last Quarter Lake 183 Travis 620 290 Months (4Q12) -Date Months (4Q12) 2222 NW NE Volume ($ Mil) $1,545.3 $267.8 $198.2 $78,997.2 $30,055.1 N

290 No. of Properties 56 19 6 3,170 1,099 360 2244 WC E Total SF 8,535,310 1,658,677 1,230,605 409,841,043 153,515,254 L1 C 183 969 SW CBD

71 Average Price/SF $192 $232 N/A $216 $231 130 290 71 SE 973 290 1826

275 Average Cap Rate (Yield) 7.1% N/A N/A 7.1% 7.0% 183 S 71 45 Source: Real Capital Analytics

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967 1327 ABOUT TRANSWESTERN

Transwestern is one of the largest privately-held, SSAE16 compliant commercial real estate firms in the United States. A diversified operating company, Transwestern is active in the real estate service, development and investment management businesses. We create value for clients through innovation, penetrating market intelligence and legendary service delivered by teams of local market experts. The firm has product specialties including office, industrial, retail, multifamily, data centers and healthcare. Through our strategic alliance with BNP Paribas Real Estate, Transwestern has extended its global reach to serve clients in Europe, the Middle East, Africa and India. Transwestern leads the industry in sustainability and has received multiple ENERGY STAR© awards from the Environmental Protection Agency (EPA).

The Austin office of Transwestern was established in 1984 to provide a broad spectrum of real estate services for assets in Central Texas. We are a market leader in Austin, currently providing real estate services for a multitude of office, industrial, retail and multifamily properties representing approximately 8 million square feet of leasing, management, development, acquisition and investment sales. Transwestern has seasoned veterans in every area of expertise with the integrity, experience and creativity to be the best partner for its clients. Transwestern’s Austin office currently employs over 75 team members and has been an innovator in the Austin market for 29 years.

Transwestern offers a complete range of services SEATTLE to our clients including management, leasing, tenant representation, development, accounting,

investment sales and market research. Within each MINNEAPOLIS line of service there is proven market leadership, DETROIT MILWAUKEE GREENWICH NEW YORK seasoned, knowledgeable professionals and an CHICAGO NEW JERSEY SAN unparalleled international platform that, as a FRANCISCO WALNUT SALT LAKE BETHESDA CREEK CITY BALTIMORE private company, offers stability and consistency DENVER WASHINGTON DC NORTHERN ST. LOUIS for our clients and customers. The combination VIRGINIA of a local focus and national resources allows LOS ANGELES OKLAHOMA ORANGE COUNTY CITY Transwestern to offer the most comprehensive SAN DIEGO PHOENIX ATLANTA package of services under one roof, and provides FORT DALLAS the greatest flexibility for our clients. WORTH HOUSTON AUSTIN SAN ANTONIO NEW ORLEANS ORLANDO Visit our website www.transwestern.net/austin to FORT LAUDERDALE learn more about Transwestern and the services MIAMI-DADE we provide.

AUSTIN TEAM MEMBERS

Ty Puckett, Executive Vice President Chris Stutzman, Managing Director Josh Delk, Associate Vice President Development & Investment Sales Investment Sales - Multifamily Development & Investment Sales 512.314.3572 512.314.5203 512.314.3557 [email protected] [email protected] [email protected]

Hale Umstattd, SVP | Managing Director Britt Reed, Senior Vice President Will Stewart, Senior Associate Investment Sales & Agency Leasing Tenant Advisory & Agency Leasing Agency Leasing & Tenant Advisory 512.314.3551 512.314.3577 512.314.3574 [email protected] [email protected] [email protected]

Craig Hutchens, Senior Vice President Greg Johnson, Vice President Ron Losefsky, Senior Associate Structured Finance & Capital Markets Agency Leasing Investment Sales & Tenant Advisory 512.314.3555 512.314.3570 512.314.5215 [email protected] [email protected] [email protected]

Leah Gallagher, Managing Director Luke Wheeler, Vice President Robert Gaston, Exec. Vice President Investment Sales Agency Leasing & Tenant Advisory Central Texas 512.314.3571 512.314.3553 512.314.3554 [email protected] [email protected] [email protected]

Jeff Rogers, Managing Director Brandon Lester, Associate Vice President Karen Judson, Vice President Investment Sales - Multifamily Agency Leasing & Tenant Advisory Marketing & Research 512.314.5207 512.314.3576 512.314.3560 [email protected] [email protected] [email protected]

The Austin Office MARKETWATCH report is a monthly report prepared by Transwestern that tracks market statistics for the Austin MSA. Transwestern is pleased to provide this information to our clients and customers. If you would like to be added to the distribution list for this report, please contact Karen Judson at the phone number or email address above. The information contained herein was gathered from sources deemed to be reliable including the CoStar Group and Real Capital Analytics, however no warranty or representation, either express or implied, can be made by Transwestern as to the accuracy or completeness of this information. Copyright © 2013.

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