Northwest Austin

Spring :: 1Q 2013 Austin Publication Date: April 2013 Office Market Overview

The Austin Office Market Overview is a quarterly publication prepared by Transwestern Austin for our clients. If you would like receive copies of this publication on a quarterly basis, please contact any of our senior team members below, or send an email request to [email protected].

Transwestern Austin  901 South MoPac Expressway  Building 4, Suite 250  Austin, Texas 78746  512.328.5600  www.transwestern.net/austin

Transwestern Austin Kevin Roberts, President | Southwest (713) 270.3347 [email protected] Robert Gaston, Executive Vice President | Central Texas (512) 314.3554 [email protected] Becky Doolin, CPA, Senior Vice President | Financial Services (512) 314.3575 [email protected]

Agency Leasing and Tenant Advisory Mike Brown, Senior Vice President (512) 314.3552 [email protected] Britt Reed, Senior Vice President (512) 314.3577 [email protected] Greg Johnson, Vice President (512) 314.3570 [email protected] Luke Wheeler, Vice President (512) 314.3553 [email protected] Brandon Lester, Associate Vice President (512) 314.3576 [email protected] Will Stewart, Senior Associate (512) 314.3574 [email protected]

Central Texas Multifamily Services Jeff Rogers, Managing Director (512) 314.5207 [email protected] Chris Stutzman, Managing Director (512) 314.5203 [email protected]

Development Services Ty Puckett, Executive Vice President (512) 314.3572 [email protected] John Langton, LEED©-AP, Vice President (512) 328.5600 [email protected] Josh Delk, Associate Vice President (512) 314.3557 [email protected]

Investment Services Hale Umstattd, Senior Vice President | Managing Director (512) 314.3551 [email protected] Leah Gallagher, Managing Director (512) 314.3571 [email protected]

Structured Finance Craig Hutchens, Senior Vice President (512) 314.3555 [email protected]

Marketing & Research Karen Judson, Vice President (512) 314.3560 [email protected]

Property and Facilities Management Karisa Johnson, Vice President, RPA, CPM© (512) 314.3558 [email protected] Heidi Kelley, General Manager (512) 314.3559 [email protected] Kathryn Swift, RPA, General Manager (512) 314.3999 [email protected] Stephanie Vasquez, Property Manager (512) 314.5202 [email protected] Jenny Wheeler, Property Manager (512) 314.3960 [email protected] Sari Baker, Property Manager (512) 452.1636 [email protected] Barry Peterson, SMA, LEED©-AP, Senior Chief Engineer (512) 771.4355 [email protected]

901 South MoPac Expressway, Building 4, Suite 250, Austin, Texas 78746 | 512.328.5600 | www.transwestern.net/austin Table of Contents

Section I :: Austin Office Overview Austin 1Q13 Office Market Summary Economic Indicators Notable Office Lease and Sales Transactions Large Contiguous Office Vacancy Survey - 20,000 sf or Greater Historical Office Rental Rates Green Building Statistics :: LEED© & ENERGY STAR© Historical Absorption, Vacancy and Population Growth

Section II :: Office Development & Recent Deliveries Austin Office Deliveries & Development Summary Map & Survey - Select Austin Office Deliveries & Development Map & Survey - Potential Office Development Tracking: CBD / NW / SW

Section III :: Central Business District Overview Austin Central Business District Summary Austin Central Business District Aerial Austin Central Business District Competitive Building Survey CoStar Survey: CBD-C-WC Submarkets Buildings 30K SF or Larger

Section IV :: Northwest & Far Northwest Submarket Overview Northwest & Far Northwest Austin Summary Northwest & Far Northwest Austin Aerial Northwest & Far Northwest Austin Competitive Building Survey CoStar Survey: CP-E-FNW-N-NE-NW-RR Submarkets Buildings 30K SF or Larger

Section V :: Southwest Submarket Overview Southwest Austin Summary Southwest Austin Aerial Southwest Austin Competitive Building Survey CoStar Survey: S-SE-SW Submarkets Buildings 30K SF or Larger

Section VI :: Office Market Reports 1Q13 Office Market Report Comparison Summary What Is Up With These Market Reports? CB Richard Ellis 1Q13 MarketView Office Report Cushman & Wakefield 1Q13 MarketBeat Office Report Jones Lang LaSalle 1Q13 /Pulse/ Office Report NAI REOC 1Q13 Office Report Newmark Grubb Knight Frank 1Q13 Office Report Transwestern 1Q13 MarketWatch Office Report Xceligent 1Q13 Market Trends Office Report CoStar 1Q13 Office Report

Please note that office lease and sales comparables will no longer be included as part of the quarterly Austin Office Market Overview. If you would like to discuss current lease or sales comps, please contact a Transwestern Austin team member at (512) 328.5600. Thank you. 901 South MoPac Expressway, Building 4, Suite 250, Austin, Texas 78746 | 512.328.5600 | www.transwestern.net/austin Section I :: Austin Office Overview Austin 1Q13 Office Market Summary Economic Indicators Notable Office Lease and Sales Transactions Large Contiguous Office Vacancy Survey - 20,000 sf or Greater Historical Office Rental Rates Green Building Statistics :: LEED© & ENERGY STAR© Historical Absorption, Vacancy and Population Growth 901 South MoPac Expressway, Building 4, Suite 250, Austin, Texas 78746 | 512.328.5600 | www.transwestern.net/austin Austin Office Market Snapshot Spring :: 1Q 2013

Vacancy Austin Office Market Rental Rates Vacancy & Class A Rental Rates

30% $40 $35 25% $30

20% $25 15% $20

% Vacant % $15 10%

$10 Gross Rental Rate 5% $5 0% $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD 2013

Sources:. Transwestern MarketWatch, CoStar, CBRE MarketView, Cushman & Wakefield MarketBeat Sources: Transwestern MarketWatch, CoStar, CBRE MarketView, Cushman & Wakefield MarketBeat, Buls Sublease Report

. Sources:Sources: Transwestern Transwestern MarketWatch, MarketWatch, CoStar, CoStar, CBRE CBRE MarketView, MarketView, Cushman Cushman & Wakefield & Wakefield MarketBeat MarketBeat, Buls Sublease Report

Absorption Austin Office Market Vacancy Absorption and Vacancy

2000 30%

1500 25%

1000 20% Absorption Absorption

(In Thousands)(In 500 15% % Vacant %

0 10% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD (500) 2013 5%

(1000) 0%

. Sources:Sources: Transwestern Transwestern MarketWatch, MarketWatch, CoStar, CoStar, CBRE CBRE MarketView, MarketView, Cushman Cushman & Wakefield & Wakefield MarketBeat MarketBeat, Buls Sublease Report

Economic Indicators Spring:: 1Q 2013

Unemployment. Austin’s job market continues to outpace the state and national averages. Austin’s unadjusted unemployment rate was 5.4% as of February 2013, which is out-performing Texas’s unadjusted unemployment rate of 6.5% and the U.S. unadjusted unemployment rate of 8.1% for the same period.

Health care hiring helps nudge Austin jobless rate lower [partial excerpt, Austin American-Statesman, March 29, 2013] Austin - Round Rock - San Marcos MSA February 2013 The rapid, ongoing (Bastrop, Caldwell,expansion Hays, of Travis, health Williamson) care jobs in Central Texas surged in February, supplementingIndustry modest Composition job growth in other industries and helpingMining, Logging, nudge and Construction the area’s joblessWages rate by Industry (in millions) 5% 3rd Quarter 2012 lower, according to data released Friday 6%by the Texas WorkforceManufacturing Commission. Unemployment $561.9 20% $1,097.7 in the Austin metro area dropped to 5.4 percent in February, downTrade, Transportation, from 5.8 and Utilitiespercent the prior $1,920.2 month, the commission said. The number of employed workers increased slightly faster than the Information average January-to-February increase over the18% past dozen years, and the number of unemployed $273.8 Financial Activities $1,667.5 workers dropped at4% a significantly faster-than-average rate, the commission data showed. Austin employers added 10,000 jobs during February, an increase of 1.2Professional percent and Business from Services the prior month, $444.4 the commission said. Education and Health Services 11% 3% Leisure and Hospitality $1,050.3 6% $394.1 Texas employers added a seasonally adjusted 80,600 jobs in February,Other Services more than any other state, according to the U.S.12% Bureau of Labor Statistics. (Unadjusted, the state added 118,000 $795.8 jobs, according to the Texas Workforce15% Commission.) “When lookingGovernment at Austin, I think that it is $1,875.8 impressive thatEmployment about 10 by percent Industry of the state’s employment gains came from a metro areaIndustry that Size Class September 2012 holds just 5 percent of its population,” said Michael Hennig,Monthly economic Change developmentAnnual Change programSize Employees Number Employment % Total Class per firm of Firms in Size Class Employment manager at the Capital Area Council ofFeb-13 Governments. Jan-13 Feb-12 “This isActual even more% impressive Actual considering% Total Nonfarm 840,100 830,100 807,900 10,000 1.2% 32,200 4.0% 9 1000+ 79 246,290 30.2% all the hiringMining, taking Logging, place and Construction in West Texas43,600 and the 42,900 Eagle 40,000 Ford shale 700 right1.6% now.” 3,600In fact, 9.0%few of the8 500-999 107 72,294 8.9% metro areasManufacturing around the country can match50,700 Austin’s 50,700 recovery 50,200 since0 the0.0% recession,500 according1.0% to7 250-499 236 79,727 9.8% an analysisTrade, released Transportation, Thursday and Utilities by the149,700 Brookings 150,600 Institution. 142,900 From -900 the worst-0.6% point6,800 of its4.8% recession 6 100-249 723 110,414 13.5% to the end Informationof last year, only New Orleans22,100 has 22,100seen employment 21,400 recover0 0.0% at a faster700 rate3.3% than the5 50-99 1,175 82,261 10.1% Austin has Financialfrom its Activities trough, the Brookings45,400 analysis 44,400 showed. 45,100 [Read 1,000 the rest2.3% of this300 article0.7% at www.statesman.com4 20-49 3,112] 94,652 11.6% Professional and Business Services 127,300 126,000 120,900 1,300 1.0% 6,400 5.3% 3 10-19 4,030 54,359 6.7% Education and Health Services 101,600 97,300 95,700 4,300 4.4% 5,900 6.2% 2 5-9 5,827 38,518 4.7% Leisure and Hospitality 93,900 93,200 89,400 700 0.8% 4,500 5.0% 1 1-4 18,817 36,450 4.5% Other Austin Services - Round Rock - 35,700San Marcos 35,300 MSA 34,100 400 1.1% 1,600 4.7% 0 0 4,223February 0 20130.0% Government (Bastrop, Caldwell, Hays, Travis,170,100 Williamson) 167,600 168,200 2,500 1.5% 1,900 1.1% Total 38,329 814,965 100.0% AnnualIndustry Growth Composition Rate for Total Nonagricultural EmploymentMining, Logging, and Construction Wages by Industry (in millions) 5% 3rd Quarter 2012 7.0% 6% Manufacturing $561.9 6.0% 20% $1,097.7 5.0% Trade, Transportation, and Utilities $1,920.2 4.0% 3.0% Information 2.0% 18% $273.8 Financial Activities $1,667.5 1.0% 4% 0.0% Professional and Business Services $444.4 -1.0% -2.0% Education and Health Services -3.0% 11% 3% -4.0% Leisure and Hospitality $1,050.3 6% $394.1 Other Services Feb-03 Feb-04 Feb-05 Feb-06 Feb-07 Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Nov-03 Nov-04 Nov-05 Nov-06 Nov-07 Nov-08 Nov-09 Nov-10 Nov-11 Nov-12 Aug-03 Aug-04 Aug-05 Aug-06 Aug-07 Aug-08 Aug-09 Aug-10 Aug-11 Aug-12 May-03 12% May-04 May-05 May-06 May-07 May-08 May-09 May-10 May-11 $795.8 May-12 15% Government $1,875.8 UnemploymentEmployment by InformationIndustry (all estimates in thousands) Industry Size Class September 2012 Austin - Round Rock - San Marcos MSA Monthly ChangeTexas (Actual)Annual Change Size EmployeesUnited Number States Employment (Actual) % Total C.L.F. Emp. Unemp.Feb-13 Jan-13Rate Feb-12 C.L.F.Actual Emp.% Unemp. Actual Rate% Class perC.L.F. firm of FirmsEmp.in Unemp.Size Class EmploymentRate TotalFeb-13 Nonfarm 978.5 925.9840,100 52.6 830,1005.4 807,90012,662.6 10,000 11,845.61.2% 32,200 817.0 4.0%6.5 9 154,727.01000+ 142,228.079 246,29012,500.0 30.2%8.1 Mining,Jan-13 Logging, and 974.4 Construction 918.043,600 56.4 42,9005.8 40,00012,655.1 700 11,782.51.6% 3,600 872.6 9.0%6.9 8 154,794.0500-999 141,614.0 107 13,181.0 72,294 8.9%8.5 ManufacturingFeb-12 955.1 896.250,700 58.9 50,7006.2 50,200 12,520.80 11,613.10.0% 907.7500 1.0%7.2 7 154,114.0250-499 140,684.0 236 13,430.0 79,727 9.8%8.7 Trade, Historical Transportation, Unemployment and Utilities 149,700 Rates 150,600 142,900 -900 -0.6% 6,800 4.8% 6 100-249 723 110,414 13.5% Information 22,100 22,100 21,400 0 0.0% 700 3.3% 5 50-99 1,175 82,261 10.1% 12.0% Financial Activities Austin - Round Rock45,400 - San Marcos MSA 44,400 45,100 1,000 2.3% 300 0.7% 4 20-49 3,112 94,652 11.6% Professional10.0% and BusinessTexas Services 127,300 126,000 120,900 1,300 1.0% 6,400 5.3% 3 10-19 4,030 54,359 6.7% U.S. Education and Health Services 101,600 97,300 95,700 4,300 4.4% 5,900 6.2% 2 5-9 5,827 38,518 4.7% 8.0% Leisure and Hospitality 93,900 93,200 89,400 700 0.8% 4,500 5.0% 1 1-4 18,817 36,450 4.5% Other6.0% Services 35,700 35,300 34,100 400 1.1% 1,600 4.7% 0 0 4,223 0 0.0% Government 170,100 167,600 168,200 2,500 1.5% 1,900 1.1% Total 38,329 814,965 100.0% 4.0% Annual Growth Rate for Total Nonagricultural Employment 2.0% 7.0% 6.0% 0.0% 5.0% 4.0% Feb-03 Feb-04 Feb-05 Feb-06 Feb-07 Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Nov-03 Nov-04 Nov-05 Nov-06 Nov-07 Nov-09 Nov-10 Nov-11 Nov-12 Nov-08 Aug-08 Aug-03 Aug-04 Aug-05 Aug-06 Aug-07 Aug-09 Aug-10 Aug-11 Aug-12 May-03 May-04 May-05 May-06 May-07 May-08 3.0% May-09 May-10 May-11 May-12 2.0% 1.0% Available at http://www.tracer2.com 0.0% -1.0% -2.0% -3.0% -4.0% Feb-03 Feb-04 Feb-05 Feb-06 Feb-07 Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Nov-03 Nov-04 Nov-05 Nov-06 Nov-07 Nov-08 Nov-09 Nov-10 Nov-11 Nov-12 Aug-03 Aug-04 Aug-05 Aug-06 Aug-07 Aug-08 Aug-09 Aug-10 Aug-11 Aug-12 May-03 May-04 May-05 May-06 May-07 May-08 May-09 May-10 May-11 May-12

Unemployment Information (all estimates in thousands) Austin - Round Rock - San Marcos MSA Texas (Actual) United States (Actual) C.L.F. Emp. Unemp. Rate C.L.F. Emp. Unemp. Rate C.L.F. Emp. Unemp. Rate Feb-13 978.5 925.9 52.6 5.4 12,662.6 11,845.6 817.0 6.5 154,727.0 142,228.0 12,500.0 8.1 Jan-13 974.4 918.0 56.4 5.8 12,655.1 11,782.5 872.6 6.9 154,794.0 141,614.0 13,181.0 8.5 Feb-12 955.1 896.2 58.9 6.2 12,520.8 11,613.1 907.7 7.2 154,114.0 140,684.0 13,430.0 8.7 Historical Unemployment Rates 12.0% Austin - Round Rock - San Marcos MSA 10.0% Texas U.S. 8.0%

6.0%

4.0%

2.0%

0.0% Feb-03 Feb-04 Feb-05 Feb-06 Feb-07 Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Nov-03 Nov-04 Nov-05 Nov-06 Nov-07 Nov-08 Nov-09 Nov-10 Nov-11 Nov-12 Aug-03 Aug-04 Aug-05 Aug-06 Aug-07 Aug-08 Aug-09 Aug-10 Aug-11 Aug-12 May-03 May-04 May-05 May-06 May-07 May-08 May-09 May-10 May-11 May-12

Available at http://www.tracer2.com Housing Prices. As of February 2013, Austin’s average home price was $262,404, which is above the Texas average of $202,200 and the National average of $221,700. Austin has 2.6 months of inventory supply of homes verses the Texas average of 4.3 months and the National average of 4.7 months.

Austin and U.S. Average & Median Housing Prices $290,000 Austin Average Price Austin Median Price U.S. Average Price U.S. Median Price $280,000

$270,000

$260,000

$250,000

$240,000

$230,000

$220,000

$210,000

$200,000

$190,000

$180,000

$170,000

$160,000

$150,000

Source: National Association of Realtors

Venture Capital. During the quarter, Austin added 4,600 jobs, had 32 companies relocate and expand here and saw $102.5 million in capital invested, according to the Austin Chamber of Commerce. The venture and startup funding is down slightly from last year, but that may be in part because of the large amount invested in 2012.

Annual Percentage Change in Venture Capital Investment

80%

Austin MSA United States 69% 68%

60%

40% 36%

26% 20% 18% 17% 16% 14% 10% 11%

0% 2% -2% -6% -11% -11%

-20%

-32%

-40% -38% -46% -45% -49%

-58% -60% -61%

-80% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source: Austin Chamber of Commerce Notable Austin Office Lease and Sales Transactions Spring :: 1Q 2013

Office Leases. Office leaving velocity increased over the quarter, and is expected to continue this trend throughout 2013. Rental rates are picking up and concessions are being minimized as occupancy increases.

Select Large Office Lease Transactions (10,000 SF or Greater) Quarter Tenant Name Property Square Feet Submarket 2Q13 AMD (sale/leaseback) 7171 Southwest Parkway 812,350 Southwest 2Q13 Amnherst Securities Plaza on the Lake I 20,379 Southwest 2Q13 CD Adapco (renewal) Pecan Park I (DR Horton) 10,492 Far Northwest 2Q13 CSC Crossings at Lakeline I 26,363 Far Northwest 2Q13 Premiere Global Services (renewal) Frost Bank Tower 16,765 CBD 2Q13 QualComm (expansion) Stonebridge Plaza II 22,356 Northwest 2Q13 Zenoss Four Points Center 40,000 Far Northwest 1Q13 Fiserv (renewal) Barton Oaks Plaza III 25,384 Southwest 1Q13 HomeAway Research Park Plaza IV 30,606 Far Northwest 1Q13 Independence Title Company (renewal) Arboretum Plaza II 17,599 Northwest 1Q13 Invenio Solutions Donley Plaza 40,000 Northeast 1Q13 Meyertons Hood Kivlin Kowert & Goetzel (renew) Cityview 2 22,541 Southwest 1Q13 Office Depot (expansion) AmberOaks H 24,724 Far Northwest 1Q13 Schlotzsky's Stores LLC Offices at the Domain I 13,505 North 1Q13 SecureNet Riata Corporate Park 6 13,938 Far Northwest 1Q13 Yeti Coolers (sublease) Overwatch Building 26,000 Southwest 1Q13 Cirrus Logic (expansion) 300 West 6th Street 18,438 CBD 1Q13 CLEAResult Consulting (renew & expansion) The Escalade 48,904 Southwest 1Q13 Great American Life Company Crossings at Lakeline II 18,730 Far Northwest 1Q13 HNTB Corp (renew) Austin Centre 14,051 CBD 1Q13 Reliance Energy Terrace VII 12,054 Southwest 1Q13 Tableau Software One American Center 18,080 CBD 1Q13 Texas Nurses Association Reunion Park 16,142 North 1Q13 Veracyte Riata Corporate Park 5 20,728 Far Northwest 1Q13 Wieshart Springer & Hayes (renew/expansion) The Offices at The W 21,978 CBD 1Q13 Accruent Braker Pointe II 26,516 North 1Q13 AEP Wells Fargo Tower 17,090 CBD 1Q13 American Federation of Teachers (renew) Fountain Park Plaza 10,100 South 1Q13 Comerica Bank (renew) 300 West 6th Street 10,888 CBD 1Q13 Eye Physicians Inc. 5000 Plaza on the Lake 10,227 Southwest 1Q13 Flextronics (office portion only) renewal 12455 Research (2 of 4 bldgs) 782,247 Far Northwest 1Q13 LDR Spine (expansion) Aspen Lake 14,504 Far Northwest 1Q13 LIN Media Austin Centre 23,931 CBD 1Q13 Moak Casey & Associates Wells Fargo Tower 11,144 CBD 1Q13 Somnio Solutions Four Points Center 18,000 Far Northwest 1Q13 Western Solutions (renew) Mira Vista 13,185 Southwest 4Q12 Adometry Lakewood Center 17,000 Northwest 4Q12 Field Asset Services Frontera Crossing 38,800 Round Rock 4Q12 HotSchedules.com (renew & expand) The Millennium Building 19,028 Far Northwest 4Q12 Marsh USA Crossings at Lakeline 1 31,011 Far Northwest 4Q12 Mass Relevance Inc. Brazos Place 11,178 CBD 4Q12 Miratech Holdings Plaza on the Lake II 18,781 Southwest 4Q12 Page Southerland Page (renew) 400 West Cesar Chavez 36,277 CBD 4Q12 Q2ebanking Aspen Lake 86,000 Far Northwest 4Q12 Seton Healthcare Chase Park 16,237 North 4Q12 SHI Government Solutions (expansion) One Barton Skyway 50,737 Southwest 4Q12 Thompson & Knight San Jacinto Tower 20,198 CBD 4Q12 Visa Resesarch Park Plaza III 173,530 Far Northwest 4Q12 VMWare Inc. River Place Corp Park 54,838 Far Northwest 4Q12 Whaleshark Media 301 Congress 95,000 CBD 3Q12 Alcatel/Motive (renew) Research Park 5 74,064 Far Northwest 3Q12 Apollo Endosurgery The Setting 18,388 Southwest 3Q12 Business Suites (renew) Barton Oaks Plaza I 20,174 Southwest 3Q12 CA, Inc. Plaza on the Lake 34,786 Southwest 3Q12 Cintra US/Ferrovial Great Hills Plaza 14,025 Northwest 3Q12 Drilling Info (renew & expansion) Terrace 6 68,968 Southwest 3Q12 Farm Credit Bank (extension) Plaza on the Lake II 111,548 Southwest 3Q12 General Motors (GM) Parmer @ Techridge 320,596 Northeast 3Q12 Harte Hanks Response Managmentq Arboretum Plaza I 10,175 North 3Q12 HQ Global Workplace (renew) Littlefield Building 11,306 CBD 3Q12 Legal Zoom Research Park Plaza IV 23,711 Far Northwest 3Q12 Rackspace USA, Inc. Northview Business Center 87,884 Northeast 3Q12 Relativity Holdings (sublease) Rialto 2 36,421 Southwest 3Q12 RGN Midwest LLC Aspen Lake 14,614 Far Northwest 3Q12 Samsung Semiconductor (Expansion) Ladera Bend 1 14,081 Far Northwest 3Q12 ShoreTel (expansion) River Place Corp Park 12,000 Far Northwest 3Q12 Superior Access Stratum Executive Center 13,246 Far Northwest 3Q12 Sutherland Asbill & Brennan One American Center 13,705 CBD 3Q12 Tek Systems River Place Corp Park 13,138 Far Northwest 3Q12 Texas Capital Bank San Jacinto Tower 19,730 CBD 3Q12 Weaver & Tidwell LLP Barton Skyway IV 12,000 Southwest 3Q12 Zenith Insurance Company Las Cimas 11,568 Southwest 3Q12 Zilliant Perry Brooks Tower 24,200 CBD 2Q12 ACFE (sublease) 1300 Guadalupe 19,469 CBD 2Q12 ACS (renew & downsize) Riata Corporate Park 6 & 9 170,653 Northwest 2Q12 Advantage Sales & Marketing 4401 Westgate 24,938 Southwest 2Q12 American Electric Power (AEP) (renew) Wells Fargo Tower 15,424 CBD 2Q12 Apple HighFLEX Tech Center 27,361 Far Northwest 2Q12 BazaarVoice (renew) 3900 San Clemente 76,804 Southwest 2Q12 Boundless Networks Hannig Row 11,702 CBD 2Q12 Calxeda, Inc. (renew & expansion) Plaza 7000 21,080 North 2Q12 Convio (renewal & downize) Domain 5 12,018 North 2Q12 Cox & Smith PC (renewal & expansion) One Congress Plaza 13,482 CBD 2Q12 Demand Media (renew) The Terrace 200 Academy Drive 21,639 Southwest 2Q12 Duggins Wren PC One American Center 23,571 CBD 2Q12 Endo Pharmaceuticals Amber Oaks G 14,461 Far Northwest 2Q12 Gaston Manor Partnership Texas Real Estate Commisson 24,617 Northeast 2Q12 Hissey, Kientz & Herron (renew) Arboretum Plaza I 14,999 Northwest 2Q12 Intel (downsize & renew) One Barton Skyway 46,712 Southwest 2Q12 Invenio Marketing Solutions Donely Plaza 12,453 North 2Q12 Locke Lord PC One American Center 23,571 CBD 2Q12 Main Street Hub, Inc. Perry Brooks Tower 16,800 CBD 2Q12 New York Life Insurance (renew) Bridgepoint Square 38,000 Northwest 2Q12 Novogradac Stratum Executive Center 13,098 Far Northwest 2Q12 NSS Labs Inc. Wild Basin I 18,646 Southwest 2Q12 O'Connell Robertson & Associates (renew) 811 Barton 10,016 Southwest 2Q12 Qualcomm (renew & expansion) Stonebridge Plaza II 55,634 Northwest 2Q12 Rapid 7 Stonebridge Plaza I 14,607 Northwest 2Q12 Regus Aspen Lake 14,614 Far Northwest 2Q12 Segal McAmbridge 100 Congress 20,000 CBD 2Q12 SHI Government Solutions (renew) Four Barton Skyway 65,479 Southwest 2Q12 Texas Cmsn on Environmental Quality (renew) Colonnade Office Center 201,575 North 2Q12 Texas Department of Transportation (renew) Bevington Reed Building 55,952 South 2Q12 Wells Fargo Bank (renew) Stratum Executive Center 10,864 Far Northwest 2Q12 Winstead PC Frost Bank Tower 52,000 CBD 1Q12 401K (renew) San Jacinto Tower 40,082 CBD 1Q12 Austin Ventures (renew) 300 West 6th Street 33,390 CBD 1Q12 Brown McCarroll PC (renew & downsize) 111 Congress 46,000 CBD 1Q12 Cirrus Logic 300 West 6th Street 29,602 CBD 1Q12 Clear Channel (renew) Penn Field 28,700 South 1Q12 Coats Rose Barton Oaks Plaza I 12,290 Southwest 1Q12 CWS Capital Partners Stonebridge Plaza I 19,469 Northwest 1Q12 DeVry University (Renew) Stratum Executive Center 13,266 Northwest 1Q12 Electronic Arts (renew) 7700 Parmer 49,500 Far Northwest 1Q12 Emergency Service Partners (expansion) La Costa Centre 21,590 Northeast 1Q12 Green Mountain Energy (renew & expansion) 300 West 6th Street 51,282 CBD 1Q12 I-69 Texas Mobility Partners Chase Park 13,572 North 1Q12 Lloyd Gosslink PC (renew) 816 Congress 35,824 CBD 1Q12 Lumeris Inc. Great Hills Corp Center 11,861 Northwest 1Q12 Motion Computing (renew) Park Centre II 34,958 Far Northwest 1Q12 NextIO 8303 North MoPac 38,401 North 1Q12 Ratliff Law Firm One American Center 11,566 CBD 1Q12 Razorfish (renew) 300 West 6th Street 21,200 CBD 1Q12 RGB Networks Avallon IV 10,269 Northwest 1Q12 ShoreTel (renew) River Place Corp Park 12,043 Far Northwest 1Q12 Siemans Real Estate 9225 Bee Caves Road 34,272 Southwest 1Q12 Software Advice The Terrace 200 Academy Drive 12,194 South 1Q12 Spiceworks (expansion) Ladera Bend 3 28,216 Far Northwest 1Q12 Spire Realty Chase Tower 10,600 CBD 1Q12 Sprint (renew) Stratum Executive Center 13,257 Far Northwest 1Q12 Texas Windstorm Insurance Assoc. (renew) Monterey Oaks 52,650 Southwest 1Q12 Union Pacific Las Cimas II 10,852 Southwest 1Q12 Whole Foods Las Cimas 54,433 Southwest Office Sales. The combination of an improving economy, loosening credit, and lenders ready to let go of recently foreclosed properties has fueled investor interest and activity. In addition, Austin has gained attention nationally as a highly desirable secondary market for investment. The following is a list of recent sales transactions:

Select Office Sale/Foreclosure Transactions

Date Property Seller Buyer Square Feet Submarket U/C Briarcroft & Continental Buildings Kennedy Wilson Haverwood 122,525 North U/C La Costa Centre Rosemont Realty Undisclosed 81,675 Northeast U/C Chase Park I-V Prime Financial Undisclosed 285,000 North U/C Austin Centre Thomas Properties Lincoln Property Company 343,665 CBD 4/13 6th & Congress (Bank of America Tower) T. Stacy/Walton Street Stream/Heitman/Wanxiang 400,352 CBD 4/13 816 Congress Thomas Properties Cousins Properties 433,024 CBD 4/13 Bridgepoint Plaza I & II Alaska Pension Fund TA Associates 117,971 Northwest 4/13 Wereldhave Portfolio - Austin Portion Wereldhave USA Lone Star Funds 423,009 (2.2M) NW/SW 4/13 AMD Longhorn Campus (Sale/Leaseback) AMD Spear Street/HPI Real Estate 865,832 Southwest 3/13 7000 West @ Lantana I & II Equity Office Properties Undisclosed 138,366 Southwest 3/13 Barton Oaks Plaza I GID Mirage Investment Group 99,404 Southwest 3/13 Great Hills Plaza, Park Centre I-III, Westech360 1-4 Thomas Properties KBS Capital Advisors 520,118 Northwest 2/13 Plaza 35 A & B Stream Realty Karlin Real Estate 185,485 Northeast 1/13 9900 Spectrum Dr. David Winn/eMD LegalZoom.com 206,336 Far Northwest 1/13 Pecan Park I Trammell Crow CapRidge Investments 136,444 Far Northwest 12/12 Hoover's Building HDG Mansur RRRTI Breadmakers LP/AMS 80,735 North 12/12 Ladera Bend I-III Sarofim/HPI Partnership Rovira Inc./Presidio Group 161,163 Far Northwest 12/12 Travis Oaks at Southwest Parkway Lincoln Propety Company CREA Travis Oaks LLC 123,532 Southwest 11/12 Balcones Center PRE/Commons at Cliff Creek LP Austin Telco FCU (user) 75,422 Northwest 11/12 Grant Plaza (Tx Lottery Cmsn) Spire Realty Lynx Grant LLC/Sonia Lee Inv 89,063 Central 11/12 Lavaca Plaza PCCP, LLC Brickman Associates 118,643 CBD 9/12 Lehman/Thomas Portfolio (8 Projects) Lehman (sold 50% interest) Thomas Prop./CalSTRS 2,968,913 CBD/Northwest 8/12 Littlefield Bldg / Scarbrough Bldg Heitman DivcoWest Real Estate 240,568 CBD Office7/12 BuildingsParmer For BusinessSale/Under Park A-F Contract. IncreasingDivcoWest office sales velocityRREEF and the rising sales256,737 prices that Northwest go along with7/12 it has spurredResearch more Park building Plaza I & II owners to putThomas their Properties properties Group on the market.Spear Street Austin is considered271,889 a desirable Northwest 7/12 Stonebridge Plaza II Thomas Properties Group Heitman 192,864 Northwest secondary7/12 marketCrystal and Mt I-III sales& Lakepointe prices Center areII increasingReceivership due (Alshulter to the Co.) increased nationalSteve Herron interest in Austin.97,462 ExpectSouthwest to see more6/12 properties comeEscalade to market A & B over the next severalChase Merritt quarters. TA Associates 115,039 Southwest 6/12 Parmer @ Techridge Dell, Inc. Karlin Real Estate 320,587 Northeast 6/12 Pecan Park II Trammell Crow D.R. Horton (user) 136,643 Far Northwest 6/12 SelectVista Office Ridge II BuildingsBogel For Family Sale/OnPartnership the Market/UnderJMA Interests 54,849Contract Southwest 5/12 Parkway at Oaks Hill I & II Wells Value Add Fund I Presidio/Rorasa Inc. 145,788 Southwest Submarket4/12 BuildingOne Name La Costa Building AddressOne La Costa AssociatesBuilding NRA (SF) A+ Fed.Type Credit Union (user)Current Status* 60,798Asking PriceNortheast Listing Brokerage 3/12 Brazos Place (Office Portion) Walton Street Capital Commercial 95,757 $4.7M CBD Northeast 1212 East Anderson Lane 1212 East Anderson Lane 54,050 Class B- Office On The Market Kennedy Wilson 3/12 Capitol Tower Stream Realty Partnership CommonWealth REIT 172,200($87 psf) CBD 3/12 Chase Park I-V Chase Merritt Prime Lending (Foreclosure) 286,935 North Northwest3/12 RialtoArboretum I & II (Lantana Point Corp. Center) 9505 ArboretumStratus Properties150,033 LincolnClass A PropertyOffice CompanyOn The Market 155,378Unpriced SouthwestCBRE 3/12 Stonegate Medical Center Stonegate Prof. Properties Carter Validus M-C REIT 27,519 Southwest Executive Center Drive at North Austin Oaks (12-building office park) 445,322 Class B Office On The Market Unpriced CBRE 2/12 5900-2 Shepherd Mountain Cove Woodhollow DriveLehtonen Investments Independence Title (user) 44,808 Northwest 2/12 8303 North MoPac Aspen Properties University FCU (user) 246,869 North Briarcroft Building & 12710 Research Blvd & 63,825 sf & $16.07M North2/12 Prominent Pointe I & II Aspen Properties ClassDivcoWest B Office Real EstateUnder Contract 254,690 NorthwestCBRE Continental Building 9101 Burnet Road 58,700 sf ($131 psf) 1/12 Centennial Towers Capmark Bank Braun Enterprises 159,972 Northeast Chevy Chase Drive North Chase Park I - V 285,000 Class B Office Under Contract Unpriced Oxford Commercial @ Anderson Lane $8.05M North Executive Plaza 14205 Burnet Road 64,158 Class B Office On The Market Aquila Commercial ($125 psf)

Northeast La Costa Center 6300 La Calma Drive 81,675 Class B Office Under Contract Unpriced Transwestern

Northeast Northview Business Center 9001 IH-35 262,067 Class B Office Under Contract Unpriced Transwestern

Northeast Parmer @ Techridge 701 Parmer Lane 320,597 Class B Office On The Market Unpriced CBRE

Regency Office Center Southeast 2100 South IH-35 102,590 Class B Office On The Market Unpriced CBRE (XO Communications Bldg)

Northwest Research Park Plaza III & IV 12301 Research Blvd. 361,042 Class A Office Coming To Market Unpriced Easdil Secured

North StoneCreek Park 3300 Duvall Road 77,173 Class B Office Coming To Market Unpriced CBRE

Round Rock Summit at La Frontera 810 Hesters Crossing 87,186 Class B Office On The Market Unpriced CBRE

West Central West End Center 1214 West 6th Street 50,132 Office/Retail On The Market Unpriced CBRE

* Current Status refers to the status of the property at the close of the quarter. Sales move quickly, especially in Austin, Texas. Please contact Transwestern's Central Texas Investment & Capital Markets Team for current updates on these properties or to discuss the investment sales market.

Sources: Transwestern, CoStar, Real Capital Analytics Large Contiguous Office Vacancy Survey :: 20,000 SF or Greater

Year Bldg Building >20K SF Contiguous Space Submarket Building Name Building Address Built Class Size (SF) Direct (SF) Sublet (SF) CBD 100 Congress Ave 100 Congress Ave 1987 A 411,536 42,934 0 CBD 300 West Sixth 300 W 6th St 2001 A 459,085 29,049 21,889 CBD Frost Bank Tower 401 Congress Ave 2003 A 560,674 21,992 0 CBD James H. Robertson 416 Congress Ave N 1893 B 21,056 21,056 0 CBD Lavaca Plaza 504 Lavaca St 1983 A 190,000 37,000 0 CBD One American Center 600 Congress Ave 1984 A 748,000 30,208 0 CBD One Congress Plaza 111 Congress Ave 1987 A 518,385 22,961 0 CBD San Jacinto Center 98 San Jacinto Blvd 1987 A 404,098 31,583 0 CBD SUBTOTAL: 236,783 21,889 Central Reunion Park 8501 MoPac Expy N 1979 B 123,280 27,569 0 Central University Park 3300 N IH-35 2009 A 206,657 134,687 0 CENTRAL SUBTOTAL: 162,256 0 East Freescale - South Campus C 3501 Ed Bluestein Blvd B 61,244 61,244 0 East Freescale - South Campus D 3501 Ed Bluestein Blvd B 167,243 167,243 0 East Freescale - South Campus V 3501 Ed Bluestein Blvd B 24,292 24,292 0 East Tracor 1 6500 Tracor Ln 1965 B 88,836 88,836 0 EAST SUBTOTAL: 341,615 0 Far Northwest 7700 Parmer A 7700 W Parmer Ln 1999 A 250,000 62,000 0 Far Northwest 7700 Parmer B 7700 W Parmer Ln 1999 A 350,000 340,000 0 Far Northwest 7700 Parmer C 7700 W Parmer Ln 1999 A 282,000 50,000 0 Far Northwest 7700 Parmer D 7700 W Parmer Ln 1999 A 140,000 66,000 0 Far Northwest Amber Oaks H 9501 Amberglen Blvd 2007 B 101,045 26,212 0 Far Northwest Four Points Centre 1 11305 Four Points Dr 2008 A 96,005 45,627 0 FAR NORTHWEST SUBTOTAL: 589,839 0 North Frontera Crossing 101 W Louis Henna Blvd 1984 B 165,000 36,620 0 North Park Central I 12345 N Lamar Blvd 2008 B 114,091 64,137 0 North Travesia Corporate Park III 3800 Quick Hill Rd 2009 A 67,500 33,555 0 North Waterford Centre D 9211 Waterford Center Blvd 1998 B 49,656 29,444 0 NORTH SUBTOTAL: 163,756 0 Northeast 8100 Cameron A 8100 Cameron Rd 1984 B 58,474 58,474 0 Northeast Northview Business Center 9001 I-35 N 1971 B 254,705 100,009 0 Northeast Texas Real Estate Commission 1101 Camino La Costa 1981 B 50,644 25,322 0 NORTHEAST SUBTOTAL: 183,805 0 Northwest Great Hills Plaza 9600 Great Hills Trl 1984 A 135,333 30,322 0 Northwest Parmer Business Park F 5301 Riata Park Ct 2001 B 36,435 0 36,435 Northwest Quarry Oaks Atrium A 10900 S Stonelake Blvd 1998 A 168,000 89,712 0 Northwest Research Park Number Five 12515 Research Blvd 2001 A 113,302 39,237 0 Northwest Research Park Place, Building 8 12515 Research Blvd 2007 A 135,000 105,067 0 Northwest Research Park Plaza I 12401 Research Blvd 1999 A 136,076 32,013 0 Northwest Riata Corporate Park 3 12331-A Riata Trace 1999 A 63,849 59,220 0 Northwest Riata Crossing 5 12554 Riata Vista Cir 2000 A 50,494 50,494 0 Northwest River Place Corporate Park III 6500 River Place Blvd 2001 A 113,528 89,236 0 Northwest StoneCliff 7801 Capital Of Texas Hwy N 2002 A 66,027 35,957 0 Northwest Tech Center 2 12515-2 Research Blvd 2000 B 58,500 22,295 0 Northwest The Avallon I 10415 Morado Cir 1986 A 58,143 21,700 0 Northwest The Avallon V 10431 Morado Cir 1997 A 107,002 107,002 0 Northwest The Park 8300 N MoPac Expy 1999 A 93,312 23,253 0 NORTHWEST SUBTOTAL: 705,508 36,435 South PPD Building B 706 W Ben White Blvd 1979 B 70,000 27,470 0 SOUTH SUBTOTAL: 27,470 0 Southeast Bergstrom Park 312 6800 Burleson Rd 1986 B 204,346 204,346 0 Southeast Met Center Phase II, Bldg 4 7100 Metropolis Dr 2012 A 172,800 172,800 0 Southeast Southpark Office Center 5015 S IH-35 2007 B 122,916 29,981 0 SOUTHEAST SUBTOTAL: 407,127 0 Southwest Barton Creek Plaza III 3815 Capital Of Texas Hwy S 1999 A 64,597 29,431 0 Southwest Barton Skyway II 1601 S MoPac Expy 2000 A 196,000 47,583 0 Southwest CityView Center 1122 Capital Of Texas Hwy S 2000 A 137,763 134,511 0 Southwest Hill Country Galleria R 12600 Hill Country Blvd 2008 B 73,686 23,892 0 Southwest Lake Pointe Center II 11612 Bee Caves Rd 1998 B 43,922 32,645 0 Southwest Overwatch Campus 5301 Southwest Pky 2007 A 160,000 0 84,360 Southwest Plaza on the Lake I 5001 Plaza on the Lake Dr 1998 A 122,530 35,387 0 Southwest Rialto II 7500 Rialto Blvd 2006 A 77,506 36,339 27,965 Southwest Spyglass Point 1801 S Mopac Expy 1999 A 58,576 21,112 0 Southwest Terrace VI 2901 Via Fortuna Dr 2002 A 196,717 73,353 0 SOUTHWEST SUBTOTAL: 434,253 112,325 Source: CoStar GRAND TOTAL: 3,252,412 170,649 Historic Class A Office Rental Rates (Gross) :: By Submarket Historical Austin Office Rates - Class A Buildings Submarket: CBD Northwest North Central Round Rock East South Southwest Citywide No. of Buildings 62 229 58 35 27 32 151 594 Market Size (SF) 9,045,086 16,434,386 2,905,950 620,894 1,855,273 1,746,355 9,514,959 42,122,903 Vacancy 11.9% 14.4% 27.6% 20.0% 12.7% 21.7% 7.8% 13.6% Quarter Class A Gross Rental Rates 1Q2005 $24.10 $20.04 $18.17 N/A $16.69 $16.96 $21.25 $21.10 2Q2005 $24.16 $20.92 $21.00 N/A $17.00 $17.70 $21.59 $21.99 3Q2005 $23.92 $21.33 $20.70 N/A $17.00 $19.48 $22.15 $22.47 4Q2005 $25.54 $22.46 $21.00 N/A $17.00 $19.82 $23.73 $23.88 1Q2006 $25.65 $23.11 $21.81 N/A $17.00 $20.12 $23.94 $24.23 2Q2006 $26.11 $24.20 $21.50 N/A $17.00 $20.40 $25.15 $25.04 3Q2006 $27.91 $24.52 $21.50 N/A $17.00 $20.86 $25.36 $25.89 4Q2006 $29.10 $25.19 $22.00 N/A $15.75 $22.54 $27.45 $26.91 1Q2007 $31.53 $26.89 $24.45 N/A $15.00 $22.48 $28.48 $28.72 2Q2007 $34.29 $28.95 N/A $24.45 N/A $22.19 $29.88 $31.03 3Q2007 $35.78 $29.37 N/A $26.25 N/A $22.21 $29.72 $31.15 4Q2007 $35.76 $28.93 N/A $26.50 N/A $22.66 $31.23 $31.28 1Q2008 $35.66 $29.07 $29.75 N/A N/A $23.32 $31.70 $31.31 2Q2008 $36.99 $29.13 $29.75 N/A N/A $22.73 $31.62 $31.57 3Q2008 $38.75 $29.29 $29.75 N/A N/A $22.78 $31.03 $31.39 4Q2008 $37.76 $29.26 $29.72 $28.50 N/A $22.00 $30.76 $30.77 1Q2009 $38.40 $28.46 $28.47 $28.50 N/A $24.18 $30.00 $30.18 2Q2009 $37.91 $28.08 $26.86 $28.50 N/A $24.24 $29.63 $29.91 3Q2009 $37.32 $27.64 $26.88 $28.50 N/A $24.65 $29.50 $29.70 4Q2009 $37.38 $27.55 $27.82 $28.50 N/A $25.95 $29.43 $29.70 1Q2010 $37.62 $27.25 $28.06 $28.50 N/A $25.89 $29.35 $29.60 2Q2010 $37.46 $26.89 $27.99 $25.00 N/A $22.00 $29.30 $29.05 3Q2010 $36.88 $26.23 $26.81 $26.50 N/A $22.00 $28.70 $28.65 4Q2010 $37.30 $26.17 $26.64 $26.50 N/A $22.00 $28.17 $28.74 1Q2011 $37.25 $25.89 $26.55 $26.41 N/A $22.00 $27.48 $28.64 2Q2011 $37.94 $26.02 $25.27 N/A N/A $13.04 $27.57 $28.09 3Q2011 $37.76 $26.18 $25.27 N/A N/A $13.02 $27.31 $27.90 4Q2011 $37.68 $26.54 $28.53 N/A N/A $22.00 $28.38 $29.31 1Q2012 $38.18 $26.70 $28.76 N/A N/A $22.00 $28.77 $29.75 2Q2012 $38.41 $26.83 $28.89 N/A N/A $23.00 $29.27 $30.26 3Q2012 $38.66 $26.88 $28.69 N/A N/A $23.00 $29.96 $30.33 4Q2012 $38.87 $27.40 $28.74 N/A N/A $21.62 $29.81 $31.15 1Q2013 $40.50 $28.21 $28.84 N/A N/A $25.42 $31.50 $31.84

Source: CBRE Econometrics. Note that CBRE combines submarkets. For example, South includes S and SE, Northwest includes NW and Far NW, East includes E and NE

$44.00 Historic Gross Rental $42.00 Rates $40.00 Austin, Texas $38.00 $36.00

$34.00 $32.00 $30.00 $28.00 $26.00 $24.00 Northwest Gross Rental Rate Rental Gross $22.00 Southwest $20.00 CBD $18.00 $16.00 1Q2005 2Q2005 3Q2005 4Q2005 1Q2006 2Q2006 3Q2006 4Q2006 1Q2007 2Q2007 3Q2007 4Q2007 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 Green Building Statistics :: LEED© & ENERGY STAR© Spring :: 1Q 2013

Commercial real estate has two standardized national rating systems for “green” buildings, both of which include measuring and certifying environmentally responsible new construction, as well as the operation of existing buildings in an environmentally and economically effective way. These two rating systems are the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED©) program, and the Environmental Protection Agency’s ENERGY STAR© Certified Buildings & Plants program.

LEED© and ENERGY STAR© certified buildings must meet strict performance standards set by the USGBC and EPA. These standards include using less energy and water, utilizing sustainable materials and processes, and causing fewer greenhouse gas emissions - thus minimizing the building’s negative impact on the environment.

AUSTINAustin MSA MSA:: ENERGY :: ENERGY STAR© STAR CERTIFIED© Certified OFFICE Office BUILDINGSBuildings IncludesIncludes Austin-Area Austin-Area Office Office and &Medical Medical Office Office Projects Projects Only Only

as of 4/1/2013 Square No. of % of Total % of No. of Submarket Feet Buildings Square Feet Buildings CBD 5,313,056 16 41.7% 20.5% Far Northwest (FNW) 76,365 3 0.6% 3.8% North (N) 378,570 3 3.0% 3.8% Northeast (NE) 255,784 3 2.0% 3.8% Northwest (NW) 1,712,399 15 13.4% 19.2% Round Rock (RR) 373,866 3 2.9% 3.8% South & Southwest (SW) 4,637,641 35 36.4% 44.9% Citywide: 12,747,681 78 100.0% 100.0%

Source: ENERGY STAR © Certified Buildings & Plants Website, CoStar

ENERGY STAR© Office Building SF By Submarket

SW 31% CBD 41%

NW RR 15% 2.9% N 4% FNW NE 0.6% 2.0% AUSTINAustin MSA MSA :: LEED© :: LEED CERTIFIED© Certified & REGISTERED & Registered OFFICE BUILDINGS Office Buildings Includes Austin-Area Office and Medical Office Projects Only Includes Austin-Area Office & Medical Office Projects Only

as of 4/1/2013 Total Square % of Total Number of LEED© Designation :: No. of Office Projects By Category Feet (Office) Sq. Feet Office Projects Certified Platinum Gold Silver Registered* LEED© CS (Core & Shell): 5,035,201 24.0% 29 0 0 4 2 23 LEED© NC (New Construction): 5,578,974 26.6% 50 6 0 8 3 33 LEED© EB (Existing Building): 10,326,897 49.3% 33 1 0 8 0 24 TOTALS: 20,941,072 100% 112 7 0 20 5 80

All Certified Platinum Gold Silver Registered* % of Total No. of Projects (By Category): 100% 6.3% 0.0% 17.9% 4.5% 71.4% Total Square Feet (By Category): 20,941,072 425,373 0 5,122,419 332,724 15,060,556 % of Total Square Feet (By Category): 100% 2.0% 0.0% 24.5% 1.6% 71.9%

*Registered projects are those that have submitted applications to the USGBC for LEED© certification but have not yet completed certification. Source: U.S. Green Building Council (USGBC) - LEED © Project Directory.

LEED© Office Composition LEED© Office Composition 2.0% 0.0% By Certification By Category

17.5% LEED© LEED© EB CS 42.9% 39.3% 77.8% LEED© 1.6% NC 17.8%

Certified 2.0% Platinum 0% Gold 24.5% Silver 1.6% Registered 71.9%

Austin MSAAUSTIN :: MSA LEED :: LEED©© & &ENERGY ENERGY STAR© STAR OFFICE© Office MARKET Building COMPARISON Comparison IncludesIncludes Austin-Area Austin-Area Office Office and & MedicalMedical Office Office Projects ProjectsOnly Only

as of 4/1/2013

Full (Macro) Citywide Multi-Tenant Citywide LEED© Certified Office ENERGY STAR© Office Market Office Market Buildings Only** Office Buildings Only

Total Square Feet 83,112,253 42,122,903 6,072,046 12,747,681 Total No. Of Buildings 3,703 594 36 78 Total Available SF 8,360,729 5,726,957 689,003 1,474,955 1Q13 Vacancy 10.1% 13.6% 10.9% 10.4% 1Q13 Absorption (YTD) 197,928 198,379 70,872 74,353 1Q13 Average Gross Rent* $26.36 $27.20 $24.96 $22.78

* Rent numbers reflect only the "for lease" office buildings within each category. There are office campuses and owner-occupied office buildings included in the Macro, LEED © and ENERGY STAR © square foot totals and those buildings are not included in the average rental rate calculation.

** All of the LEED © numbers above only include the Certified (Platinum, Gold, Silver, Certified) buildings, and not the Registered buildings.

Sources: CoStar; ENERGY STAR © Certified Buildings & Plants; USGBC - LEED © Project Directory; CBRE Econometrics Historic Office Absorption :: Market Report Comparison Historical Office Absorption by Submarket - Comparison of Market Reports

Oxford Commercial (Cushman & Wakefield) MarketBeat Submarket CBD Central Far NW North Cen Northeast Northwest South Cen Southeast Southwest Round Rock Citywide Mkt Size (SF) 8,612,657 998,679 12,413,074 2,485,635 1,994,845 3,950,337 2,103,594 992,420 8,132,772 1,112,135 42,796,148 Year-End Vacancy 11.5% 16.1% 15.7% 16.8% 12.0% 11.6% 5.4% 24.4% 10.7% 16.9% 13.2% Absorption Prior to 2007, Oxford/Cushman Year-End 1998 153,831 N/A 558,947 N/A N/A N/A(aka N/A Colliers) did not N/Abreak 336,746 N/A 1,021,461 Year-End 1999 78,141 N/A 457,938 N/A N/A 358,281 downN/A their absorption numbers N/A 1,185,849 N/A 2,159,801 by submarket in their quarterly Year-End 2000 79,127 N/A 981,843 N/A N/A 160,286 marketN/A reports - however N/A they 434,883 N/A 1,793,611 Year-End 2001 (394,377) N/A 54,333 N/A N/A (450,000) didN/A single out the CBD, N/A FNW, 42,176 N/A (612,321) NW and SW submarkets, which Year-End 2002 (346,620) N/A (323,607) N/A N/A (43,438) areN/A included here. Therefore N/A 40,718 N/A (920,841) Year-End 2003 (271,126) N/A (301,505) N/A N/A (90,164) theseN/A will not total to the N/A Year- (256,994) N/A (1,196,803) End Citywide Absorption Year-End 2004 53,571 N/A 553,405 N/A N/A 212,153 NumbersN/A in the far right N/Acolumn. 216,197 N/A 1,169,181 Year-End 2005 159,313 N/A 725,200 N/A N/A (97,792) N/A N/A 82,714 N/A 1,214,853 Year-End 2006 24,758 N/A 570,899 N/A N/A 136,837 N/A N/A 117,515 N/A 789,531 Year-End 2007 126,083 14,171 94,437 124,246 78,290 (14,090) (45,480) 6,023 12,738 (13,787) 382,631 Year-End 2008 166,679 7,059 (137,759) 109,724 (41,459) (90,316) 27,347 (229,459) 489,540 67,353 368,709 Year-End 2009 (141,610) 142,052 (315,319) (67,321) 82,845 (120,859) (70,180) 2,678 (10,877) 16,231 (482,360) Year-End 2010 26,183 45,671 53,911 69,486 (8,082) (66,300) (10,023) 70,106 459,068 23,066 663,086 Year-End 2011 201,470 25,631 580,172 (32,617) 30,124 48,501 95,761 4,533 (16,361) 284,846 1,222,060 Year-End 2012 268,746 17,084 587,538 14,298 172,197 190,511 144,647 30,472 131,835 253,061 1,810,389

CBRE Econometrics Differing Methodologies Submarket CBD Northwest North Cen Round Rock East South Southwest Citywide No. of Buildings 62 225 57 35 27 32 145 583 Oxford/Cushman tracks physical Mkt Size (SF) 9,024,912 15,733,995 3,050,129 620,894 1,855,273 1,746,355 8,629,538 40,661,096 vacancy and occupancy, while Year-End Vacancy 12.0% 15.3% 23.0% 19.3% 12.7% 21.0% 9.9% 14.2% CBRE and Capitol Market Absorption Research track lease-up and availability. The difference is that Year-End 1996 131,304 193,112 N/A N/A 83,748 35,596 38,301 482,061 Oxford counts absorption at the Year-End 1997 430,203 517,284 N/A N/A 142,477 59,235 9,646 1,158,845 time of physical occupancy, rather Year-End 1998 166,427 609,657 (37,602) N/A (386) 65,383 662,459 1,465,938 than at the time of lease Year-End 1999 144,247 449,825 157,327 N/A 159,515 61,931 725,169 1,698,014 execution. CBRE and Capitol Year-End 2000 94,586 576,553 73,050 N/A (17,904) 63,589 254,169 1,044,043 Market Research count space as Year-End 2001 (165,357) (353,966) 25,407 NA 16,051 (15,189) 116,036 (377,018) absorbed when it is leased, aka no longer on the market. This means Year-End 2002 (10,671) (303,440) (23,445) N/A (20,921) (186,833) 232,984 (312,326) 2002 that if a lease is signed in January Year-End 2003 (206,555) 199,848 26,001 N/A (30,651) (255,420) (119,366) (386,143) 2003(Q1) but the tenant occupies in Year-End 2004 (15,677) 588,810 265,545 N/A (134,633) 11,868 350,992 1,066,905 2004April (Q2), Oxford will count the Year-End 2005 (7,223) 772,465 98,570 N/A (13,543) 63,185 178,924 1,092,378 2005absorption in April (Q2), whereas Year-End 2006 383,490 546,497 60,760 N/A (48,904) 14,921 312,429 1,269,193 2006CBRE and Capitol Market Year-End 2007 188,838 192,639 110,045 4,245 175,484 23,925 (16,144) 679,032 2007Research will count the absorption Year-End 2008 226,255 (167,643) 167,595 (2,682) (135,780) 73,430 307,854 469,029 Year-End 2009 (249,634) (569,424) 147,966 (15,900) 49,718 60,520 (166,825) (743,579) Year-End 2010 190,764 14,469 122,855 (7,999) (26,865) 31,047 295,845 620,116 Year-End 2011 167,794 1,169,660 103,556 37,083 (32,154) 52,136 367,752 1,865,827 Year-End 2012 177,023 677,714 (10,917) 8,592 387,386 83,355 205,677 1,528,830

* Note: CBRE combines submarkets. For example, South includes S and SE, Northwest includes NW and Far NW, East includes E and NE Capitol Market Research Austin Office Market Survey Submarket CBD Central North Cen Northwest Far NW Northeast Southeast South Cen Southwest Round Rock Citywide No. of Buildings 55 18 37 115 118 55 7 26 129 17 577 Mkt Size (SF) 8,546,786 1,087,478 1,927,472 5,792,583 9,260,820 2,944,180 433,321 1,144,540 7,821,090 684,264 39,642,534 Year-End Vacancy 9.5% 16.2% 29.2% 11.8% 16.4% 20.2% 5.8% 10.8% 7.8% 12.3% 13.1% Absorption Year-End 1991 (118,434) (19,063) 35,713 42,721 74,955 (19,866) (5,466) 52,746 168,743 N/A 212,049 Year-End 1992 78,477 (2,748) 91,576 179,394 47,889 (49,333) (7,101) 14,438 19,300 N/A 371,892 Year-End 1993 112,311 20,208 21,628 35,309 164,750 268,453 4,973 2,667 36,967 12,019 679,339 Year-End 1994 64,034 4,721 37,523 53,076 39,544 200,683 7,808 (13,903) 2,322 32,092 427,899 Year-End 1995 (26,668) 2,859 30,082 67,270 62,164 (10,128) 15,219 (7,235) 18,404 4,021 155,987 Year-End 1996 168,508 (22,846) 10,355 (93,878) 197,406 93,832 13,576 25,229 65,033 (1,337) 455,878 Year-End 1997 (12,737) 29,785 32,589 42,338 84,933 (4,778) (35,700) 302,999 57,496 (7,483) 489,442 Year-End 1998 193,968 (11,378) (9,990) (27,825) 253,204 (89,363) (118) 7,375 145,451 6,185 467,509 Year-End 1999 137,358 29,429 31,144 550,433 (53,414) 100,169 (201) 17,214 667,000 15,003 1,494,135 Year-End 2000 (70,609) (2,779) 189,804 (55,914) 733,200 96,648 9,076 (23,379) 395,706 28,699 1,300,452 Year-End 2001 (240,572) (761) 327,996 (80,584) (98,594) (55,423) (9,016) (17,789) 388,244 (15,030) 198,471 Year-End 2002 (122,594) (8,096) 29,291 28,121 2,323 34,139 (30,635) 18,062 191,177 9,251 151,039 Year-End 2003 (112,013) (4,019) 87,598 (17,071) (298,359) 12,356 (32,117) (130,911) 146,401 (7,843) (355,978) Year-End 2004 151,444 56,250 (2,463) 213,059 547,275 (277,930) 7,724 21,475 128,525 23,866 869,225 Year-End 2005 191,425 623 (12,438) (31,214) 302,686 (8,499) 7,147 187,309 264,161 (4,844) 896,356 Year-End 2006 138,359 12,210 37,860 257,921 240,443 127,200 3,983 12,613 180,808 8,875 1,020,272 Year-End 2007 175,495 15,220 51,588 (17,616) 43,146 122,005 (37,854) (15,549) 8,241 (3,536) 341,140 Year-End 2008 44,301 (7,855) 47,151 27,918 40,032 50,596 19,578 24,152 171,979 (20,391) 397,461 Year-End 2009 (119,220) 175,822 22,421 9,411 (324,471) (223,482) 30,977 (25,856) (175,713) (6,476) (636,587) Year-End 2010 146,565 17,851 (82,676) (93,808) 351,975 (88,931) 15,968 (15,360) 112,056 3,778 367,418 Year-End 2011 50,267 19,420 84,191 26,280 474,720 (46,277) (8,362) (8,340) 258,188 244,406 1,094,493 Year-End 2012 204,530 28,228 (76,437) 107,847 264,514 105,594 14,078 (2,629) 12,396 (2,913) 655,208 HistoricalHistoric Austin Office Office AbsorptionAbsorption - Comparison :: Market ofReport Market GraphReports

2500000

Oxford 2000000 CBRE CMR 1500000

1000000

500000

Absorption (Total SF) 0 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12

-500000

-1000000

YEAR-END -1500000

Annual Absorption for Austin's Office Market, By Market Report

Year- Oxford Commercial CBRE Capitol Market Research End (Cushman & Wakefield) Econometrics (CMR) 1991 212,049 1992 371,892 1993 679,339 1994 427,899 1995 155,987 1996 482,061 455,878 1997 1,158,845 489,442 1998 1,021,461 1,465,938 467,509 1999 2,159,801 1,698,014 1,494,135 2000 1,793,611 1,044,043 1,300,452 2001 (612,321) (377,018) 198,471 2002 (920,841) (312,326) 151,039 2003 (1,196,803) (386,143) (355,978) 2004 1,169,181 1,066,905 869,225 2005 1,214,853 1,092,378 896,356 2006 789,531 1,269,193 1,020,272 2007 382,631 679,032 341,140 2008 368,709 469,029 397,461 2009 (396,462) (764,926) (604,939) 2010 663,086 620,116 367,418 2011 1,222,060 1,865,827 1,094,494 2012 1,810,389 1,528,830 655,208

Sources: Cushman & Wakefield (Oxford Commercial) MarketBeat, CBRE Econometrics, Capital Market Research Year-End Report Historic AbsorptionHistorical Economic &Indicators Population vs. Office and Growth Industrial Absorption :: Austin MSA Austin MSA (Bastrop, Caldwell, Hays, Travis & Williamson Counties), Texas 1/21/2013 14:21 As Of Office Space Industrial Space Austin MSA Job Unemployment Single Family Multifamily Year End Absorption [SF] Absorption [SF] Population Growth Rate Housing Permits Permits [Units] 1997 489,442 1,515,942 1,111,264 3.2% 3.1% 8,456 5,161 1998 467,509 1,895,561 1,155,578 4.2% 2.7% 10,805 5,618 1999 1,494,135 2,116,030 1,205,898 5.0% 2.3% 11,704 8,193 2000 1,300,452 2,486,932 1,249,763 2.9% 3.0% 13,045 8,844 2001 198,471 (361,172) 1,319,797 0.4% 4.3% 9,115 8,699 2002 151,039 (1,230,950) 1,347,464 0.0% 5.9% 11,072 6,160 2003 (355,978) 85,483 1,376,008 1.0% 6.0% 12,116 3,214 2004 869,225 769,020 1,411,483 3.1% 5.1% 14,309 3,706 2005 896,356 1,026,464 1,454,706 3.6% 4.5% 17,346 5,895 2006 1,020,272 1,100,161 1,513,565 3.1% 4.1% 17,615 8,481 2007 679,062 1,170,134 1,598,161 3.2% 3.5% 12,120 6,902 2008 469,020 8,671 1,652,602 2.5% 5.2% 7,710 3,812 2009 (743,579) (597,206) 1,712,647 0.3% 6.9% 6,180 2,061 2010 620,116 723,354 1,716,289 2.0% 6.8% 6,200 2,290 2011 1,865,827 1,114,287 1,783,519 2.2% 6.3% 6,242 3,944 2012 1,528,830 2,020,382 1,870,000 4.3% 5.0% 7,533 9,765

Chart: Absorption, Population Growth & Job Growth Comparision

3,000,000 Office Absorption 6.0% Industrial Absorption

2,500,000 Population Growth 5.0% Job Growth

2,000,000 4.0%

1,500,000 3.0%

1,000,000 2.0%

500,000 1.0%

0 0.0% Absorption / Population 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (Percent) Unemployment

(500,000) -1.0%

(1,000,000) -2.0%

(1,500,000) -3.0%

Sources: Transwestern, The Real Estate Center at Texas A&M University, NAI REOC Austin, Austin Chamber of Commerce, CBRE Econometrics Historic Changes In Inventory, Vacancy & Absorption: 1980-2012 Austin Multi-Tenant Office Space - Historical Numbers 1/29/13 Year Total Number of Vacant Percent New SF Added To Asking Rental Rate PSF (GROSS) Under End NRA Buildings Square Feet Vacant Mkt (From Prior Yr) Class A Class B Class C Average Absorption Construction 1980 5,900,000 N/A 331,624 5.6% N/A N/A N/A N/A N/A N/A N/A 1981 7,100,000 N/A 1,060,000 14.9% 1,200,000 N/A N/A N/A N/A 592,260 N/A 1982 7,500,000 N/A 1,092,030 14.6% 400,000 N/A N/A N/A N/A 613,200 N/A 1983 8,700,000 N/A 1,280,750 14.7% 1,200,000 N/A N/A N/A N/A 1,011,280 N/A 1984 11,500,000 N/A 1,834,023 15.9% 2,800,000 N/A N/A N/A N/A 2,246,727 N/A 1985 15,500,000 N/A 3,887,637 25.1% 4,000,000 N/A N/A N/A N/A 2,064,791 N/A 1986 18,900,000 N/A 6,392,771 33.8% 3,400,000 N/A N/A N/A N/A 1,416,212 N/A 1987 20,116,599 N/A 7,565,948 37.6% 1,216,599 N/A N/A N/A N/A 438,010 N/A 1988 20,279,436 N/A 6,977,076 34.4% 162,837 N/A N/A N/A N/A 871,869 N/A 1989 20,628,254 N/A 6,242,339 30.3% 348,818 N/A N/A N/A N/A 930,781 N/A 1990 22,021,444 260 5,440,819 24.7% 1,393,190 $15.25 $9.73 $8.22 $11.26 1,329,195 26,000 1991 21,010,788 251 4,418,537 21.0% (1,010,656) $16.14 $10.70 $10.04 $12.12 212,029 0 1992 20,783,333 245 3,471,051 16.7% (227,455) $15.03 $11.88 $10.33 $12.37 371,892 0 1993 20,979,552 256 2,805,400 13.4% 196,219 $15.52 $12.59 $9.74 $12.84 679,339 70,000 1994 21,237,702 258 2,406,950 11.3% 258,150 $15.44 $13.09 $11.53 $13.72 427,899 0 1995 21,343,917 254 2,113,510 9.9% 106,215 $18.09 $13.45 $11.13 $14.85 155,987 371,200 1996 22,351,191 261 1,889,243 8.5% 1,007,274 $19.36 $15.34 $11.31 $16.25 138,148 405,342 1997 23,390,021 273 1,611,132 6.9% 1,038,830 $22.38 $16.51 $12.66 $17.89 374,450 1,000,000 1998 24,659,563 287 1,453,442 5.9% 1,269,542 $24.93 $19.04 $14.99 $19.88 467,488 1,870,232 1999 26,841,892 310 1,680,297 6.3% 2,182,329 $25.75 $19.91 $13.68 $21.89 1,491,904 1,257,184 2000 28,524,537 328 1,280,715 4.5% 1,682,645 $32.53 $24.15 $18.25 $26.70 1,300,452 2,576,072 2001 31,162,686 348 3,679,160 11.8% 2,638,149 $28.31 $21.92 $16.87 $24.48 232,041 2,142,984 2002 33,198,203 371 5,254,368 15.8% 2,035,517 $23.05 $18.30 $15.33 $20.71 26,341 608,668 2003 33,125,064 374 6,776,811 20.5% (73,139) $20.49 $16.59 $14.24 $18.35 (355,976) 553,686 2004 34,529,701 537 5,841,129 16.9% 1,404,637 $21.79 $16.53 $12.01 $18.88 869,225 0 2005 34,607,839 540 4,933,564 14.3% 78,138 $23.61 $17.82 $14.17 $20.08 896,355 301,277 2006 34,513,174 540 3,846,267 11.1% (94,665) $26.62 $18.87 $15.08 $21.96 1,020,272 1,594,966 2007 35,630,721 548 4,890,664 13.7% 1,117,547 $29.69 $20.70 $15.58 $25.47 341,113 2,070,902 2008 38,445,479 572 6,521,587 17.0% 2,814,758 $30.16 $23.43 $15.48 $27.41 397,462 735,596 2009 39,677,836 581 8,102,549 20.4% 1,232,357 $29.29 $23.07 $15.07 $26.31 (604,939) 35,000 2010 39,343,649 579 8,963,997 22.8% (334,187) $28.58 $21.80 $13.06 $25.13 367,418 0 2011 39,358,387 575 6,035,388 15.3% 14,738 $28.76 $20.97 $11.76 $24.19 1,094,494 63,299 2012 39,555,890 577 5,170,631 13.1% 197,503 $30.14 $22.13 $12.04 $25.41 655,208 69,453

Sources: Transwestern, Capital Market Research (1990-Present), NAI REOC Austin (1980-1989), CoStar

* Note: Negative changes in total market SF generally mean that multi-tenant building(s) were sold to a user or removed from the sample set. 901 South MoPac Expressway, Building 4, Suite 250, Austin, Texas 78746 | (512).328.5600 | www.transwestern.net/austin Section II :: Office Development & Recent Deliveries Austin Office Deliveries & Development Summary Map & Survey - Select Austin Office Deliveries & Development Map & Survey - Potential Office Development Tracking: CBD / NW / SW 901 South MoPac Expressway, Building 4, Suite 250, Austin, Texas 78746 | 512.328.5600 | www.transwestern.net/austin Austin Office Development Overview Spring :: 1Q 2013 Recent Deliveries & Construction

Development is starting to slowly pick up as the market has improved. Currently, medical office buildings, apartment complexes and of course hotels are the first developments out of the gate, but we anticipate that as occupancy improves, more product types will begin to break ground including an increase in office, value office and industrial development.

 2011 New Construction/Deliveries: Approximately 163,146 sf of new shell office construction was completed in 2011. As of this quarter approximately 114,682 sf of that total is leased, or 70.3% of the total deliveries.

 2012 New Construction/Deliveries: Approximately 427,243 sf of new shell office construction was completed in 2012. As of this quarter approximately 366,770 sf of that total is leased, or 85.8% of the total deliveries.

 2013 New Construction/Deliveries: Approximately 535,880 sf of new shell office construction was completed or is underway or completed in 2013. As of this quarter approximately 266,887 sf of that total is leased, or 49.8% of the total deliveries.

If you add together the 2011, 2012 and 2013 construction, the total is 1,126,269 sf of recently delivered or under construction shell office product in Austin. As of this quarter approximately 748,339 sf of that total is leased, or 66.4% of the total under construction/deliveries for 2011-2013.

Notable Construction-Related News

While we are not yet seeing a rush to develop, a surprising number of projects are in various stages of planning, preleasing or construction in Austin. Listed below are office development projects that made news this quarter:

 Paloma Ridge. In April, Remington Ltd. and Koontz McCombs announced plans for a 350,850 square foot office park on a 36-acre site along SH-45 between Lake Creek Parkway and West Parmer Lane. The developers are requesting a zoning change for the land in order to build the office park. No further details are available.

 Champion Office Park. Also in April, Endeavor Real Estate and Granite Properties announced plans to begin construction on Champion Office Park speculatively. The project is a two, 4-story office buildings containing 220,600 square feet to be located at the Northwest corner of FM 2222 and Loop 360. They did not announce a start date but plan to deliver the project in September 2014.

 Shoal Creek Walk. Schlosser Development announced in April that Shoal Creek Walk, the proposed office building behind Whole Foods headquarters on West 5th Street was back on track. The 17-story project had been delayed several times. Shoal Creek Walk will have 430,400 square feet of office space and 44,613 square feet of retail. It is anticipated that Whole Foods will expand their headquarters by leasing a significant portion of the building. There are also rumors that Cirrus Logic has committed to lease a large block of space in the building as well. With significant preleasing in place, the project could start as soon as the City and Schlosser Development come to an agreement on the restrictive covenants regarding green space for the project.

 HPI Real Estate Services - 3700 San Clemente and Research Research Park Park Building 6. Although there are no plans to start these Building 6 buildings speculatively, HPI began actively marketing 3700 San Clemente and Research Park Building 6 for preleasing in 1Q13. 3700 San Clemente will be a Class A office building containing 250,500 square feet with structured parking and will be located in the San Clemente @ Davenport office park on Loop 360 near the Pennybacker bridge. Research Park Building 6 is a proposed value office building adjacent to the Motive Building in the Research Park area of Austin off of Hwy 183 at Riata Trace Parkway. Building 6 will contain 117,314 square feet in 3-stories of tilt-wall office with surface parking. 3700 San Clemente

 Silverado Trail. Riverside Resources announced Silverado Trail, a 285,000 square foot, 3-building value office park on Parmer Lane in Cedar Park, north of SH-45. The buildings are 2-story tilt wall construction with surface parking, and the site will include 3 restaurant pad sites. No start date has been announced.

SILVERADO TRAIL

 Parmer. Karlin Real Estate and CBRE are marketing Parmer, a proposed 300-acre mixed use lifestyle center in Northeast Austin between Parmer and Howard Lane. Phase I covers 50 acres and includes up to 1.5M square feet of office space in 11 buildings, along with multifamily and retail. No start date has been set.

PARMER Austin Office Development Through The Years

Includes all Austin office buildings 10,000 square feet or larger delivered during the designated year or interval, including multi-tenant, single-tenant and owner occupied. As of 9/2012, Austin’s macro-market (includes all buildings) is approximately 75M SF. Austin’s multi-tenant market (only includes ‘for lease’ buildings) is approximately 45M SF. Due to Austin’s current size, only buildings 10,000 SF or larger were surveyed. During the early decades of Austin’s office development, office buildings were small single- to three-story buildings. Many of these early buildings were less than 10,000 SF and therefore are not included in this survey.

CBD New Construction Suburban New Construction Austin New Construction Five (Total Completed per Interval) (Total Completed per Interval) (Total Completed per Interval) Year No. of No. of No. of Intervals Square Feet Square Feet Square Feet Buildings Buildings Buildings 1855 to 1880 61,409 4 0 0 61,409 4 1881 to 1885 0 0 0 0 0 0 1886 to 1890 49,780 3 0 0 49,780 3 1891 to 1895 21,056 1 0 0 21,056 1 1896 to 1900 42,422 1 27,165 2 69,587 3 1901 to 1905 0 0 0 0 0 0 1906 to 1910 259,926 3 0 0 259,926 3 1911 to 1915 11,452 1 65,868 1 77,320 2 1916 to 1920 28,931 2 49,040 2 77,971 4 1921 to 1925 112,148 2 24,709 2 136,857 4 1926 to 1930 142,962 3 0 0 142,962 3 1931 to 1935 94,371 2 0 0 94,371 2 1936 to 1940 12,068 1 0 0 12,068 1 1941 to 1945 68,252 2 17,328 1 85,580 3 1946 to 1950 189,558 4 111,623 6 301,181 10 1951 to 1955 418,181 7 114,854 5 533,035 12 1956 to 1960 149,002 6 302,881 7 451,883 13 1961 to 1965 604,819 8 906,760 15 1,511,579 23 1966 to 1970 109,667 4 2,034,254 37 2,143,921 41 1971 to 1975 1,890,340 16 3,783,882 81 5,674,222 97 1976 to 1980 560,873 8 3,969,194 71 4,530,067 79 1981 to 1985 2,205,400 17 12,263,316 320 14,468,716 337 1986 to 1990 1,918,682 8 6,610,082 127 8,528,764 135 1991 to 1995 538,338 2 2,442,804 28 2,981,142 30 1996 to 2000 242,677 5 12,303,086 172 12,545,763 177 2001 to 2005 2,017,144 12 6,545,571 131 8,562,715 143 2006 to 2010 168,370 5 8,701,152 150 8,869,522 155 2011 to Present 135,000 1 336,482 9 471,482 10

Sources: CoStar Group, Travis County Tax Records

Square Feet 5,500,000

5,000,000 Run-up to the Run-up to the 1986 Savings 2007-2009 Run-up to 4,500,000 & Loan Crisis Housing Crisis the 2001 4,000,000 Tech Crash 3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD'12 Austin Office Deliveries █ - Class A Office █ - Under Construction F █ - Value Office █ - Medical Office

Select North/NW/East Austin 2011-2013 Deliveries A. Discovery Point II – 23,043 sf value office (2012) E B. Cedar Bend Professional Center – 70,200 sf MOB/Office (2012) C. Medical Oaks Phase III - 110,000 sf MOB (2011) D. Plaza North – 36,000 sf MOB (2011) E. Spicewood Center – 19,000 sf MOB (2011) F. Vista 620 Professional Center 35,000 sf value office/MOB (2012) J G. Midtown Medical Center – 62,000 sf MOB (2012) H. 2021 East 5th – 30,248 sf Class A (U/C 2013) B C J. Apple Campus Phase I – 176,000 sf Value Office (U/C 2013) A D

2

Select CBD/Southwest Austin 2011-2013 Deliveries 1. Cirrus Logic Headquarters – 135,000 sf Class A (2012) 2. Lakeway Medical Office - 80,000 sf MOB (2012) 3. IBC Bank Tower – 195,378 sf Class A (U/C 2013) 5 4. Hill Country Galleria Bldg Q – 53,453 sf Value Office (U/C 2013) 5. 9225 Bee Caves D & E – 63,301 sf Value Office (U/C 2013) G

4 3 GRAND TOTALS (ALL SUBMARKETS) 1 H TOTAL AUSTIN OFFICE DELIVERING OR U/C IN 2013: 535,800 rsf* TOTAL AUSTIN OFFICE DELIVERED IN 2012: 427,243 rsf* TOTAL AUSTIN OFFICE DELIVERED IN 2011: 163,146 rsf*

GRAND TOTAL ALL U/C & DELIVERIES: 1,126,269 rsf*

66.4% leased as of 4/2013

*See attached spreadsheet for the complete list of all Austin office buildings larger than 30,000 rsf under construction or delivered in 2010 - 2013, including Class A and Value Office deliveries in all submarkets.

AUSTIN OFFICE DEVELOPMENT AND COMPLETED CONSTRUCTION As of 4/1/2013

Project Project Start Delivery Total Leased Percent Brokerage / Name Address Sector Date Date Square Feet Square Feet Leased Contact Developer-Owner Comments

OFFICE CONSTRUCTION STARTED IN 2010 & 2011 / DELIVERED IN 2011 Plaza North Office Building 12319 N. MoPac NW Jan-11 4Q11 36,000 28,404 78.9% Scott Taylor Land Creek Develop Multi-tenant medical office building, 3 stories Spicewood Center 13642 North Hwy 183 NW Jun-11 4Q11 17,146 6,278 36.6% Cheryl Smith Kucera Company 2-story multi-tenant medical office building Medical Oaks Phase III 12221 Renfert Way NW Dec-10 4Q11 110,000 80,000 72.7% Theresa Ellington HCFD Corp Multi-tenant medical office building, 3 stories N/NW/FNW/RR Subtotal: 163,146 114,682 70.3% TOTAL DELIVERED IN 2011 163,146 114,682 70.3%

OFFICE CONSTRUCTION STARTED IN 2011 & 2012 / DELIVERED IN 2012 Cirrus Logic Headquarters 800 West 6th Street CBD Mar-11 2Q12 135,000 135,000 100.0% Jon Childers Jones Lang LaSalle Headquarters for Cirrus Logic, possible retail ground floor 34th @ West 720 West 34th Street C Oct-11 3Q12 22,000 13,090 59.5% Ryan Bandy Live Oak - Gottesman Multi-tenant medical office building Midtown Medical Tower 38th & Lamar C Aug-12 4Q12 62,000 33,480 54.0% Kevin Hunter HTH Capital Group Multi-tenant medical office building, 4 stories C/CBD Subtotal: 219,000 181,570 82.9% Cedar Bend Professional Center 12301 N. MoPac Exp NW Nov-11 3Q12 70,200 70,200 100.0% Anne Swift Live Oak - Gottesman Multitenant office and medical office bldg Vista 620 Professional Center 1850 Round Rock Avenue RR Jan-12 4Q12 35,000 35,000 100.0% Ron Evans Huffman Multitenant office and medical office bldg Discovery Park II 2591 RR 620 FNW Jun-11 2Q12 23,043 0 0.0% Gayle Berkbigler Land Bishop Realty Multitenant garden office building N/NW/FNW/RR Subtotal: 128,243 105,200 82.0% Lakeway Medical Office Plaza FM 620 & Flintrock SW Jun-11 2Q12 80,000 80,000 100.0% Ryan Frey AmeriMed Partners Multi-tenant medical office building, 4 stories SE/SW Subtotal: 80,000 80,000 100.0% TOTAL DELIVERED IN 2012: 427,243 366,770 85.8%

OFFICE CONSTRUCTION STARTED IN 2012 & 2013 / DELIVERING IN 2013+ IBC Bank Tower 500 West 5th CBD 2Q13 4Q14 195,378 16,412 8.4% Travis Dunaway Endeavor 13 story tower, IBC bank to occupy 16K sf 405 North Lamar 405 North Lamar CBD 1Q13 4Q13 17,500 0 0.0% Dan Morton Schlosser Development Office/Retail building similar to West Elm C/CBD Subtotal: 212,878 16,412 7.7% 2021 East 5th 2021 East 5th Street E 1Q13 4Q13 30,248 21,022 69.5% Travis Dunaway Endeavor Creative Office w/dog park, garden, electric car charging station Apple Campus - Phase I 5204/5205 Riata Park Court FNW 4Q12 4Q13 176,000 176,000 100.0% Joe Llamas McShane Phase I of a 2M sf office campus N/E/NW/FNW/RR Subtotal: 206,248 197,022 95.5% 9225 Bee Caves Bldg D & E 9225 Bee Caves Road SW 4Q12 4Q13 63,301 0 0.0% David Stojanik Kucera Company Phase II of a 4-building office park in SW Austin Hill Country Galleria Bldg Q 12700 Hill Country Road SW 4Q12 3Q13 53,453 53,453 0.0% Kevin Granger Peloton Real Estate Office building w/in the Hill Country Galleria Mixed Use Center SE/SW Subtotal: 116,754 53,453 45.8% TOTAL UNDER CONSTRUCTION OR DELIVERING IN 2012: 535,880 266,887 49.8%

Total SF Leased SF % Leased GRAND TOTAL: 2011 - 2013 Under Construction and Deliveries: 1,126,269 748,339 66.4% DOWNTOWN AUSTIN NEW OFFICE DEVELOPMENT

1. 3 Eleven Bowie 2. 3rd @ Colorado 3. 721 Congress 4. 804 Congress Building 5. Capitol Commons 6. Cirrus Logic Phase II 7. Episcopal Church Site 8. Green Water Redevelopment 35 9. IBC Bank Plaza 5 10. Mexic-Arte Building 11. Seaholm Redevelopment 12. Shoal Creek Walk (Whole Foods) 13. TCCC Civil & Family Courthouse 14. Third & Brazos 15. The Whitley 16. Unnamed Novare Tower 17. UT Office Complex 18. West 5th & Colorado Site

6 12 4 17 7 1 15 3 9 16 17 13 18 10 35 2 11 8 14 DOWNTOWN AUSTIN (CBD) NEW OFFICE DEVELOPMENT as of 4/2013

Map Total Project Size: Office When Start Complete Image Name of Site or Project Owner/Developer Contact Use Comments No. Size (SF) Only (SF) Annoc. Date Date

36-story tower, including 358 apartments, 11K 3 Eleven Bowie Jamil Alam Office / sf of retail & 42K sf will be office. Endeavor will 1 400,000 42,586 2Q11 4Q12 Sep-13 309-311-315 Bowie St. LYND Company/Endeavor Apartments relocate to the property, occupying approx 10K sf.

3rd @ Colorado Tim Hendricks 30-story tower including 12 stories of parking, 2 Office 396,052 390,052 1Q12 TBD TBD Colorado at 3rd Street Cousins Properties 6K sf of retail on 1st floor

Planned redevelopment of 721 Congress, 8- 721 Congress Lucian Morehead stories with 7K sf of retail and up to 50K sf of 3 Office/Retail 57,000 50,000 4Q11 TBD TBD 721 Congress Ave Asterra Properties office. Marketing but no plans to start until JV partner is found.

804 Congress Building David Kahn 29-story tower with 200 rooms, 100K sf office 4 Office/Hotel 265,000 100,000 3Q11 TBD TBD 804 Congress Avenue Private Investors and 6K sf retail.

Capitol Commons Rick DuPont 8-story office condo building, with some retail at 5 Office Condos 103,200 100,000 4Q10 TBD TBD 401 West 13th Street The DuPont Group street level.

Cirrus submitted a zoning change application & site development permit application to build a 7 Cirrus Logic - Phase II Not Officially 6 Cirrus Logic Office Unknown Unknown TBD TBD story building on the lot adjacent to their 702 & 704 West Avenue Announced headquarters, to be used as office space and possibly be connected to their new HQ building.

5 stories, mix of National Archives and office Episcopal Church Site Office / space, some of which will be offered for lease to 7 The Episcopal Church 70,000 30,000 2009 TBD TBD Trinity & 7th Street Archives 3rd parties until needed by the EC. 2/3 of site is restricted by the Capital View Corridor.

Page 1 of 3 Map Total Project Size: Office When Start Complete Image Name of Site or Project Owner/Developer Contact Use Comments No. Size (SF) Only (SF) Annoc. Date Date

Green Water Treatment Adam Nims 28-story office tower w/456K sf of office & 82K 8 Plant Redevelopment Trammell Crow Mixed Use 1,750,000 456,459 3Q11 2013 2015 sf of retail, a 17-story hotel, and two 30-story West Cesar Chavez Development apartment towers w/826 units.

IBC Bank Plaza 13 stories. 11K sf of street-level retail and 165K Jamil Alam Office / Retail / 9 (Block 51) 195,000 165,000 2Q12 4Q12 2Q14 sf of office above. IBC will occupy 19K sf. IBC is Endeavor / IBC Bank Bank 500 West 5th Street financing the project.

6-story "concept" building with 50% occupied by Mexic-Arte Building John Hogg Office / Mexic-Arte and the remainder multitenant office. 10 54,000 27,000 2Q12 TBD TBD Congress at 5th Mexic-Arte Museum Museum Requesting a bond from the City to help pay for the $30M project.

28-story tower, plus restored Seaholm power Seaholm Redevelopment John Rosatto plant & low-rise retail. 294 apartments, 50K sf 11 3rd Street @ Cesar Southwest Strategies Group Mixed Use 900,000 148,000 3Q11 1Q13 2015 of retail & 148K of office. Rumored to have Chavezz / City of Austin WeWork.com as a 100K tenant. Stream is leasing.

Shoal Creek Walk 17-story office tower directly behind the Whole Brad Schlosser Foods on 5th & Lamar. Rumored to have 12 (Behind Whole Foods) Office 475,013 430,400 4Q11 4Q13 4Q15 Schlosser Development signed LOI with Cirrus Logic for 60K sf, and West 5th @ Bowie St. Whole Foods expansion.

TCCC Civil & Family Sam Bisco TCCC is seeking a public-private partnership to Office / Up to build the project. Will contain 500K sf of 13 Courthouse Complex Travis County 1,100,000 4Q10 TBD On Hold Government 600,000 government/courthouse and 600K sf of West 4th at Guadalupe Commissioners Court mulitenant office space.

The Whitley Jeremey Smitheal Office / 16-story apartment building w/10K sf of office 14 ±150,000 10,000 3Q11 4Q11 1Q13 301 Brazos Street Riverside Resources Apartments on ground floor. 277 apartments.

3 stories with 8,500 sf of retail on ground floor, Third & Lamar Brad Schlosser topped by 2 floors of office space. Similar to 15 Office / Retail 25,000 16,500 2Q11 4Q12 4Q13 405 North Lamar Schlosser Development Schlosser's West Elm building where HomeAway is located.

Page 2 of 3 Map Total Project Size: Office When Start Complete Image Name of Site or Project Owner/Developer Contact Use Comments No. Size (SF) Only (SF) Annoc. Date Date

Unnamed Novare Tower Taylor Andrews Site purchased 5/12. Plans have not been Up to 16 (Block 52) Novare / Andrews Urban / Mixed Use TBD 2Q12 TBD TBD finalized but Andrews said options include 600,000 6th at Guadalupe Endeavor "office, residential, retail and/or hotel".

UT Office Complex 15-story office building to replace UT's existing Scott Kelley, Executive Vice CBD office space at Claudia Taylor Johnson 1/2 Block located North 17 Chancellor Office 258,500 258,500 4Q12 TBD On Hold Hall and O'Henry Hall. Will lease out excess of West 7th & East of University of Texas space in the new building and grow into it. ON Lavaca HOLD.

West 5th & Colorado Sites Originally proposed for a 275-room, 17 story Jeff Coddington Office / Mixed Starwood Hotel to be developed by Woodbine 18 201 West 5th Street & TBD TBD 3Q09 TBD TBD Oxford Commercial Use Development. Zoned CBD-CURE. Can 401 Colorado accommodate office. Currently for sale.

Totals: 5,790,265 1,965,997 The information contained here in is from sources deemed to be reliable, however no warranty or representation, either express or implied, can be made by Transwestern as to the accuracy or completeness of this information.

Page 3 of 3 18 NORTHWEST AUSTIN Select Development Sites 1

1. 600 Mays 127,176 sf 2. AmberOaks Sites (3 sites) 520,000 sf 3. Aspen Lake Phase II 200,000 sf 4. Capella at Lake Travis 125,000 sf 5. Champion Office Park I & II 230,000 sf 6. Crossings at Lakeline Phase II 230,000 sf 7. Domain 7 221,973 sf 8. Domain I & II 280,000 sf 15 9. Four Points 3 75,000 sf 10. Park Central II 114,900 sf 6 19 11. Quarry Oaks Atrium III & IV 250,000 sf 12. Research Park Plaza V 173,530 sf 16 13. Research Park Bldg 6 117,000 sf 2 13. Research Park Tract II 117,000 sf 3 14. Riata Crossing 6 49,716 sf 15. Summit II 82,141 sf 16. Travesia Corp. Park IV 80,000 sf 17. Parmer 1,500,000 sf 18. Silverado Trail (Parmer Tract) 285,000 sf 19. Paloma Ridge 350,850 sf

See attached survey for a breakdown of the individual development sites. 13 14 12

17 9 11 8 7 10 4

5 NORTHWEST AUSTIN, TEXAS :: FUTURE OFFICE DEVELOPMENT As of 4/2013

Map Delivery Total (Office) Bldg. Developer/Leasing Project Name & Address Comments No. Date Square Feet Class Contact

600 Mays Value Jim Boles 3-story office property with ground floor retail, surface parking 1 TBD 127,176 600 North Mays Street Office Summitt Commercial 4/1000. Round rock.

12.82 acres, can build up to 150,000 sf office or TBD AmberOaks 13 Acre Site Value Ty Puckett 2 TBD 150,000 multifamily on site. Adjacent to State Farm Headquarters. SWC AmberGlen @ Briarwick Drive Office Transwestern Surface parking 5/1000. Land for sale. 20 acres, can build up to 270,000 sf office on site. Plans for 2- AmberOaks 20 Acre Site Value Ty Puckett bldg, 200,000 sf development in prelim stages. Surface 2 TBD 270,000 SEC Amberglen @ Briarwick Drive Office Transwestern parking 4.8/1000. Adjacent to AmberOaks Corp Ctr. Land for sale. 6.8 acres, can build up to 100,000 sf office or TBD multifamily AmberOaks 7 Acre Site Value Ty Puckett 2 TBD 100,000 on site.Adjacent to Lifetime Fitness & AmberOaks Corporate SEC SH-45 @ Briarwick Drive Office Transwestern Center Land for sale.

David Weaver Aspen Lake Phase II (Bldgs 1 & 2) Two 3-story, 100,000 sf buildings adjacent to Aspen Lake. 3 TBD 200,000 Class A Crimson Fund 13785 Highway 183 Structured & surface parking 5/1000. (Patrinely Group)

Capella at Lake Travis TBD Todd Dailey 3-story office property adjacent to River Place Corporate 4 125,000 Class A 10815 FM 2222 @ River Place Blvd (preleasing) Capella Commercial Park, 4/1000 surface & covered parking.

Travis Dunaway Announced they would build spec in 2013. Two 4-story, Champion Office Park I & II TBD 5 230,000 Class A Endeavor 115,000 sf buildings with structured parking. Quoting $22.50 6500 N. Capital of Texas Highway (preleasing) (RREEF) Net. 4/1000 parking. A

Davis Arnow Two 4-story, 115,000 sf buildings with surface parking at Crossings at Lakeline Phase II Value 6 TBD 230,000 Simmons Vedder 4/1000. Adjacent to Crossings at Lakeline I & II. Part of 11001 Lakeline Blvd. Office Partners master planned 1.2M sf mixed use park.

Page 1 of 3 Map Delivery Total (Office) Bldg. Developer/Leasing Project Name & Address Comments No. Date Square Feet Class Contact

Travis Dunaway Under construction. 6-story office building with structured Domain 7 Spring 7 221,973 Class A Endeavor parking. 3.8/1000 parking ratio. Adjacent to Domain 11510 Burnet Road 2014 (RREEF) Gateway.

Travis Dunaway Two 5-story, 140,000 sf buildings with structured parking. Domain I & II 8 TBD 280,000 Class A Endeavor Quoting $24.00 Net. 4/1000 parking. Not actively marketing, 11800 Domain Blvd @ Rock Rose (RREEF) however Domain 7 is U/C (below)

3-story LEED C&S property w/permit in place, part of existing Four Points Centre 3 TBD Mark Greiner 9 75,000 Class A Four Points Office Park. Structured parking, 4/1000. Quoting 11040 Four Points Drive (preleasing) Oxford Commercial $23.50 Net.

Park Central II Value Marshall Davidson 3-story property with surface parking, 4/1000. Adjacent to 10 TBD 114,900 12345 North Lamar Office KMD Studley Park Central I. Land is for sale.

Quarry Oaks Atrium III & IV Jeremey Smitheal Two 3-story, 125,000 sf office buildings wth structured 11 TBD 250,000 Class A Braker Lane @ Stonelake Blvd. Riverside Resources parking, 4/1000. Quoting $23.00 Net.

4-story office property with structured parking 4/1000. Research Park Plaza V TBD Mike Brown 12 173,530 Class A Quoting $24.00 net. Part of Research Park Plaza I-IV office 12301 Research Blvd. (preleasing) Cousins Properties park.

3-story property between Cisco & Flextronics. Surface Research Park Tract I Value Sam Houston 13 TBD 117,000 parking 4/1000. Permit in place. Part of Research Park office 12501 Research @ Oak Knoll Office HPI Texas group (Research Park Place 7 & 8, Research Park 5).

3-story property with surface parking between Motive Research Park Building 6 TBD Value Sam Houston 13 117,000 (Research Park 5) and Flextronics, Currently preleasing. Will 12501 Research @ Oak Knoll (preleasing) Office HPI Texas take some of Motive's parking if built.

Riata Crossing 6 Value Peter Kahn 2-story value office property adjacent to the Apple Campus in 14 TBD 49,716 12544 Riata Vista Circle Office Spear Street Riata Crossing. Permit in place. Surface parking 5/1000.

Page 2 of 3 Map Delivery Total (Office) Bldg. Developer/Leasing Project Name & Address Comments No. Date Square Feet Class Contact

Summit II @ La Frontera Value Marshall Davidson 2-story value office building site adjacent to Summit I, surface 15 TBD 82,141 810 Hesters Crossing Office KMD Studley parking at 4.8/1000. Land is for sale.

Single-story flex property to be built as 100% office, similar to Travesia Corporate Park IV Class B / David Blackbird 16 TBD 80,000 Travesia I-III. 5/1000 surface parking. Competes with value 4200 Grand Avenue Parkway Flex/Off Stream Realty office but is inferior.

Parmer Class A 300-acre mixed use development. Phase I will have up to 11 TBD Mark Emerick 17 Parmer Lane between Harris Ridge & 1,500,000 Office office buildings totaling 1.5M sf plus retail and multifamily. (preleasing) CBRE McCallum Pass Road (MXD) East of I35 near the old Dell Manufacturing Bldgs.

Silverado Trail (Parmer Tract) Value Jeremey Smitheal Three two-story office builldings and 3 pad sites with surface 18 TBD 285,000 Parmer Lane at Ranch Trails Office Riverside Resources parking.

Paloma Ridge 36 acre site, Koontz McCombs is currently requesting a Value Marshall Davidson 19 SH45 Betweeen Lake Creek Parkway TBD 350,850 change in zoning to accommodate office. Partner is Office KMD Studley & Parmer Lane Remington Ltd.

TOTAL: 5,129,286

Page 3 of 3 SOUTHWEST AUSTIN Select Class A Development Sites

1. Capitol Ridge 186,871 sf 4 2. Encino Trace I & II 321,698 sf 3. Rollingwood Town Center I-II 214,587 sf 4. San Clemente 3700/3800 350,500 sf 5. Terrace IV, V, VII 707,602 sf 6. Lantana Land Sites 1,130,544 sf

See attached survey for a breakdown of the individual development sites. 1

3

6 5

2 SOUTHWEST AUSTIN, TEXAS :: FUTURE CLASS A OFFICE DEVELOPMENT As of 4/2013

Map Delivery Total (Office) Bldg. Project Name & Address Developer Contact Comments No. Date Square Feet Class

A 6-story bldg & parking garage on 31 acres. Capitol Ridge Jeremey Smitheal 1 TBD 186,871 A Preleasing, but will not start w/o leasing or the start of Loop 360, S of Bee Cave Riverside Resources the adjacent hotel.

Encino Trace Park I & II Kevin Kimbrough Two 4-story bldgs of 160K sf each, structured parking, 2 TBD 321,698 A 5707 Southwest Parkway Oxford Commercial 54 acres. Preleasing.

2 bldgs - 4- & 2-stories w/parking garage, 4.2/1000. Rollingwood Center I-III Travis Dunaway 3 TBD 214,587 A Preleasing. Chasing build-to-suits. No start date until Corner of S MoPac/Bee Cave Endeavor lease is signed.

Phase C includes 2 bldgs, 3-stories each, structured San Clemente at Davenport C Sam Houston 4 TBD 350,500 A parking. 3700 San Clemente is preleasing and will likely 3700/3800 San Clemente HPI Real Estate start in 2013/14

Terrace III David Putman 9 stories, 32K floorplates, structured parking, 1704 5 TBD 203,130 A Via Fortuna at South MoPac Aquila Commercial Grandfathered

Terrace IV David Putman 9 stories, 32K floorplates, structured parking, 1704 5 TBD 285,663 A Via Fortuna at South MoPac Aquila Commercial Grandfathered

Terrace V (frmrly VI) David Putman 7 stories, 32K floorplates, structured parking, 1704 5 TBD 218,809 A Via Fortuna at South MoPac Aquila Commercial Grandfathered

8 entitled tracts that can have up to 1.1M sf of office Lantana Land Sites John Poston 6 TBD 1,130,544 A constructed in 17 bldgs, some structured parking. 1704 Southwest Parkway at Wm Cannon Lincoln Property Co. Grandfathered. Land sites are for sale.

TOTAL: 2,911,802 901 South MoPac Expressway, Building 4, Suite 250, Austin, Texas 78746 | (512).328.5600 | www.transwestern.net/austin Section III :: Central Business District Overview Austin Central Business District Summary Austin Central Business District Aerial Austin Central Business District Competitive Building Survey CoStar Survey: CBD-C-WC Submarkets Buildings 30K SF or Larger 901 South MoPac Expressway, Building 4, Suite 250, Austin, Texas 78746 | 512.328.5600 | www.transwestern.net/austin Central Business District Overview Spring :: 1Q 2013 CBD Statistics At A Glance

The Central Business District (CBD) Submarket contains approximately 9 million square feet of existing multi-tenant office space.

 CBD Direct Vacancy as of 1Q13 is 11.5%, up 0.2% from 11.3% in 4Q12.

 CBD Direct and Sublet Vacancy as of 1Q13 is 11.9%, down (0.1%) from 12.0% in 4Q12

 CBD Direct and Sublet YTD Absorption as of 1Q13 is positive 24,653 sf. Total city-wide YTD direct and sublet absorption as of 1Q13 for Austin is positive 198,379 sf. CBD CBD & Austin Annual Absorption & Vacancy Year-End Absorption Year-End Vacancy Date CBD Austin CBD Austin YE-2012 177,023 1,528,830 12.00% 13.70% YE-2011 167,794 1,650,766 13.30% 17.30% YE-2010 190,764 620,116 15.90% 23.10% YE-2009 (249,634) (743,579) 18.18% 24.88% YE-2008 226,255 469,029 12.46% 19.72% YE-2007 188,838 679,062 15.37% 15.74%

YE-2006 383,490 1,269,123 18.33% 14.48% Source: CBRE Econometrics, CoStar

 Average asking rent for the CBD submarket for Class A space is $40.50 psf gross, or approximately $25.50 NW/FNW psf NNN as of 1Q13 (assumes $15.00 psf average Class A operating expenses for 2013, however some buildings have operating expenses as high as $16.00-$17.00 psf). Year-End Absorption Year-End Vacancy CBD Large ContiguousDate Block NW/FNW Direct Vacancies Austin NW/FNW Austin YE-2012 677,714 1,528,830 15.30% 13.70% There are 8 large blocks of contiguous square footage greater than 20,000 square feet currently available in the CBD submarket for directYE-2011 lease totaling954,599 236,783 square 1,650,766 feet, none of which 19.80% are larger 17.30%than 100,000 square feet.

YE-2010 14,469 620,116 27.60% 23.10% CBD Large Contiguous Block Sublease Space YE-2009 (569,424) (743,579) 28.16% 24.88% In addition to the directYE-2008 available space(167,643) above, there 469,029are currently 1 large 21.56% contiguous 19.72%block of sublease space (greater than 20,000 sf) available in the CBD submarket, totaling 21,889 square feet. Combined with the large block YE-2007 192,639 679,062 12.47% 15.74% direct available space, the CBD submarket contains 9 large contiguous blocks of available space greater than 20,000 square feet each,YE-2006 totaling 258,672546,497 square feet. 1,269,123 See “Large Contiguous 11.13% Office 14.48% Vacancy Survey” in Section I for a complete list ofSource: the large CBRE blockEconometrics, availability. CoStar

Sources: Transwestern, CoStar, CBRE Market View, Cushman & Wakefield MarketWatch, Buls-Hodge Sublease Report SW

. Year-End Absorption Year-End Vacancy Sources: Transwestern MarketWatch, CoStar, DateCBRE MarketView, CushmanSW & Wakefield MarketBeat, BulsAustin Sublease Report SW Austin

YE-2012 205,677 1,528,830 9.90% 13.70% YE-2011 367,752 1,650,766 12.30% 17.30% YE-2010 295,845 620,116 16.00% 23.10% YE-2009 (166,825) (743,579) 19.59% 24.88% YE-2008 307,854 469,029 17.07% 19.72% YE-2007 (16,144) 679,062 15.87% 15.74% YE-2006 312,429 1,269,123 7.12% 14.48% Source: CBRE Econometrics, CoStar Austin Submarkets

CBD Central Business District RR C Central E East FNW Far Northwest

FNW Dessau Rd N North P McNeil Drive a rm er Lane NE Northeast N NW Northwest RR Round Rock NW Burnet Rd NE S South SE Southeast C Lamar Blvd SW Southwest 45th St

51st St SW 35th St Note that for Austin in general, MLK E the majority of Office space is CBD concentrated in the Northwest, Far Northwest, CBD and Southwest Lamar Blvd.

Ben White submarkets - mostly west of IH-35. Industrial space is generally located in William CannonS Brodie Lane the Southeast, Northeast, North and SE Austin-Bergstrom International Airport Round Rock submarkets, and for the most part is east of IH-35. Slaughter Ln

AUSTIN SUBMARKETS S. Congress

Long Center & 100 Parmer Events Center AUSTIN CENTRAL BUSINESS DISTRICT Congress Guadalupe Bridge Lamar San 111 Jacinto Congress Lake Ladybird Center SLAB 2 SLAB 1 301 Colorado St. Congress Amli Apts Hilton Frost Bank Chase Tower Bank 300 Brazos St. Bank TowerLavaca W. 6th of Plaza America Scarbrough One Bldg American Littlefield Center 700 Bldg Norwood Lavaca 5th Street Tower Stephen F. Austin Hotel 816 Perry Congress Austin Brooks Centre Tower 9th Street Brazos 823 Place Congress

Capital Capitol Center

San Jacinto St. Tower 10th Street

1005 Congress Congress Ave. Westgate Tower 11th Street

10th Street

Trinity Street

11th Street State Capitol Austin Central Business District Competitive Office Market Survey First Quarter 2013 (As Of April 1, 2013)

Building Name Bldg Year Square Feet % Direct Lease Asking Type Est. 2013 T.I. Parking Ratio Address Class/ Built/ Total Blg Direct Sublease Occup Add-On Term Rental of Oper. Allow. Parking Type Leasing Contact Type # Flrs NRA Available Available (No Subls) Factor (%) (Mo.s) Rate(s) Escalation Expenses PSF Cost (U/R) 100 Congress 1987 2.6/1000 100 Congress Avenue A 411,536 56,654 13,767 86.2% 16.00% 36-120 $29.00 Net $16.19 Neg. garage CB Richard Ellis - Troy Holme 22 $135/$250 512-499-4900 [email protected] 1005 Congress 1982 2/1000 1005 Congress Avenue A 95,412 7,250 4,568 92.4% 16.00% 36-120 $28.00 Gross $13.49 Neg. garage Congress Holdings Group - Jeff Henley 10 $43.00 for $175/$225 512-478-1005 [email protected] view side 300 West 6th 2002 Office: Office: 3.1/1000 300 W. 6th Street A 446,391 48,334 21,889 89.2% 18.35% 36-60 $30.00 Net $16.37 Neg. garage Thomas Properties - Mark Miller 23 Retail: Retail: $125/$200 512-536-8400 [email protected] 3,886 $34.00 301 Congress 1986 1.6/1000 301 Congress Avenue A 418,338 4,039 0 99.0% 17.40% 36-84 $25.50 Net $15.28 Neg. garage Aquila Commercial - Bart Matheney 22 $135/$200 512-684-3800 [email protected] 816 Congress 1983 2/1000 816 Congress Avenue A 433,024 94,784 6,551 78.1% 17.50% 36-84 $23.00 Net $12.98 Neg. garage Cousins Properties - Tim Hendricks 20 to $29.50 $140/$230 512-477-3434 [email protected] 823 Congress 1970 Office: Office: 1.3/1000 823 Congress Avenue B 181,381 2,803 0 98.5% 18.00% Neg. $18.00 Net $14.75 Neg. garage T. Stacy & Associates - Robert Paine 15 Retail: Retail: $135 512-476-9999 [email protected] 17,000 $17.00 900 Congress 1965 4/1000 900 Congress Avenue B 64,644 0 0 100.0% 17.00% Neg. $22.00 Gross $11.37 Neg. garage Investmt Prop. Mngt - Rose Ann Smith 5 $115/$145 512-474-9955 [email protected] Austin Centre 1986 2/1000 701 Brazos Street A 326,335 91,373 6,523 72.0% 16.00% 36-84 $23.00 Net $14.52 Neg. garage Thomas Properties - Mark Miller 16 $150/$250 512-536-8400 [email protected] Bank of America 1975 1.5/1000 515 Congress Avenue A 279,618 23,615 0 91.6% 16.30% 36-120 $25.50 Net $14.81 Neg. garage T. Stacy & Associates - Robert Paine 26 $135 512-476-9999 [email protected] Block 21 Office Space (W Hotel) 2011 Office: Office: 2.1/1000 212 Lavaca Street A 55,000 6,197 0 88.7% 18.00% 60-120 $35.00 Net $15.00 Neg. garage Stratus Properties - Matthew Green Lower (Excludes Retail: Retail: $150/$300 512-478-5788 [email protected] 5 Hotel Space) 2,500 $35.00 Brazos Building 1956 3.3/1000 815 Brazos Street B 53,508 3,151 0 94.1% 18.00% 36-120 $24.00 Gross $10.57 Neg. surface Equitable Com. Realty - Matt Levin/Patrick Ley 11 Free 512-505-0000 [email protected]

CBD Survey - Page 1 of 3 4/28/2013 Austin Central Business District Competitive Office Market Survey First Quarter 2013 (As Of April 1, 2013)

Building Name Bldg Year Square Feet % Direct Lease Asking Type Est. 2013 T.I. Parking Ratio Address Class/ Built/ Total Blg Direct Sublease Occup Add-On Term Rental of Oper. Allow. Parking Type Leasing Contact Type # Flrs NRA Available Available (No Subls) Factor (%) (Mo.s) Rate(s) Escalation Expenses PSF Cost (U/R) Brazos Place 1949 Office: Office: 1/1000 800 Brazos Street B 171,877 31,498 0 80.2% 17.50% 36-120 $18.00 Net $9.09 Neg. garage Equitable Com. Realty- Matt Levin/Jason Steinberg 14 Retail: Retail: $125 512-476-3400 [email protected] 2,471 $20.00 Net N/A Capitol Center 1984 1.3/1000 919 Congress Avenue A 164,044 10,867 0 93.4% 19.61% 36-120 $21.00 Net $15.43 Neg. garage Moore & Associates - Julia Finney 15 to $24.00 $120/$180 512-476-0919 [email protected] Capitol Tower 1986 4.3/1000 206 East 9th Street B 172,337 0 7,070 100.0% 16.50% 36-120 $20.00 Net $15.23 Neg. garage Peloton CRE - Matt Frizzell/Brian Liverman 20 $125/$200 512-814-3400 [email protected] Chase Tower 1974 1.9/1000 221 West 6th Street A 389,503 12,050 11,989 96.9% 17.90% 36-120 $26.00 Net $16.40 Neg. garage Peloton CRE - Kevin Granger/Matt Frizzell 21 Single-7% $135/$175 512-814-3400 [email protected] Frost Bank Tower 2003 Office: Office: 2.5/1000 401 Congress Avenue A 530,533 20,841 21,086 96.1% 18.56% 60-120 $33-$35 Net $16.25 Neg. garage Thomas Properties - Mark Miller 33 Retail: Retail: $135/$200 512-536-8400 [email protected] 0 $36 Lavaca Plaza 1975 3/1000 504 Lavaca Street B 118,257 29,175 0 75.3% 18.00% 36-60 $21.00 Net $15.00 Neg. garage Equitable Com. Realty- Matt Levin/Jason Steinberg 4 to $23.00 $125/$190 512-476-3400 [email protected] Littlefield Building 1910 Office: Office: 2.5/1000 106 East 6th Street A 108,676 9,204 0 91.5% 18.00% 36-120 $24.00 Net $12.01 Neg. offsite garage CB Richard Ellis - Katie Ekstrom 9 Retail: Retail: $135/$225 512-499-4900 [email protected] 0 $36.00 Net $9.00 Norwood Tower 1929 1.33/1000 114 West 7th Street A 118,786 0 0 100.0% 17.50% 36-60 $33.00 Full Svs $9.92 Neg. offsite garage Oxford Commercial - Brett Arabie 15 $125 512-474-2400 [email protected] One American Center 1984 1.72/1000 600 Congress Ave. A 523,106 134,102 11,527 74.4% 19.44% 36-60 $26.00 Net $14.10 Neg. garage Thomas Properties - Mark Miller 32 to $28.00 $150/$250 512-536-8400 [email protected] One Congress Plaza 1987 1.6/1000 111 Congress Avenue A 517,849 94,151 7,834 81.8% 19.61% 36-60 $27.00 Net $15.38 Neg. garage Thomas Properties - Mark Miller 30 to $30.00 $150/$250 512-536-8400 [email protected] Perry Brooks Building 1954 Office: Office: 2.75/1000 720 Brazos Street B 136,585 13,287 0 89.5% 17.00% 36-60 $22.00 Net $13.83 Neg. garage Transwestern - Luke Wheeler/Brandon Lester 12 Retail: Retail: $125/$195 512-328-5600 [email protected] 1,050 $22.00 $6.25

CBD Survey - Page 2 of 3 4/28/2013 Austin Central Business District Competitive Office Market Survey First Quarter 2013 (As Of April 1, 2013)

Building Name Bldg Year Square Feet % Direct Lease Asking Type Est. 2013 T.I. Parking Ratio Address Class/ Built/ Total Blg Direct Sublease Occup Add-On Term Rental of Oper. Allow. Parking Type Leasing Contact Type # Flrs NRA Available Available (No Subls) Factor (%) (Mo.s) Rate(s) Escalation Expenses PSF Cost (U/R) San Jacinto Center 1987 1.5/1000 98 San Jacinto Blvd. A 403,329 63,435 0 84.3% 19.03% 36-60 $25.00 Net $14.75 Neg. garage Thomas Properties - Mark Miller 21 to $28.00 $150/$250 512-536-8400 [email protected] Scarborough Building 1910 Office: Office: 3/1000 522 Congress Ave. B 130,789 8,725 0 93.3% 18.50% 36-120 $24.00 Net $10.62 Neg. offsite garage CB Richard Ellis - Katie Ekstrom 9 Retail: Retail: $135/$225 512-499-4900 [email protected] 0 $38.00 N/A Silicon Labs (CSC Buildings 1 & 2) 2001 4/1000 200 and 400 West Cesar Chavez A 441,828 27,971 0 93.7% 19.00% 36-120 $25.00 Net $15.95 Neg. garage Oxford Commercial - Mark Greiner 6 $175 512-474-2400 [email protected] Wells Fargo Tower 1981 Office: Office: 3/1000 400 West 15th Street A 281,196 26,051 0 90.7% 18.00% 36-120 $21 - $22 Net $13.00 Neg. garage Stream Realty - Brad Philp/Edvin Beasley 17 Retail: Retail: $120/$195 512-481-3000 [email protected] 12,868 $26.50

Including Direct Space Sublease Only TOTALS - THIS QUARTER 6,973,882 859,332 112,804 86.1% 87.7% TOTALS FROM LAST QUARTER 6,973,202 877,028 110,537 85.8% 87.4% DIFFERENCE 680 (17,696) 2,267 -0.2% -0.3%

NEW DEVELOPMENT PRELEASING Building Name Bldg Year Square Feet % Direct Lease Asking Type Est. 2012 T.I. Parking Ratio Address Class/ Built/ Total Blg Direct Sublease Occup Add-On Term Rental of Oper. Allow. Parking Type Leasing Contact Type # Flrs NRA Available Available (No Subls) Factor (%) (Mo.s) Rate(s) Escalation Expenses PSF Cost (U/R) 3rd @ Colorado 2014-15 2.75/1000 303 Colorado Street A 396,052 396,052 0 0.0% 18.00% 60-120 $30.00 Net TBD Neg. garage Cousins Properties - Tim Hendricks 30 $ TBD 512-477-3434 [email protected] Green Water Redevelopment 2014-15 3/1000 West 2nd at San Antonio Street A 456,535 456,435 0 0.0% 18.00% 60-120 $33.00 to Net $15.00 Neg. garage CBRE - Troy Holme/Casey Ford 27 $35.00 Est. $ TBD 512-499-4900 [email protected] IBC Bank Plaza 2014-15 Office: 2.6/1000 500 West 5th Street A 195,378 165,871 0 15.1% 18.00% 60-120 $28.00 Net $13.49 Neg. garage Endeavor - Travis Dunaway/Jonathan Tate 13 Retail: $ TBD 512-682-5570 [email protected] 11,040 Seaholm Redevelopment 2014-15 3/1000 3rd & West Avenue @ Cesar Chavez A 115,000 115,000 0 0.0% 18.00% 60-120 $28.00 Net TBD Neg. garage Stream Realty - Brad Philp/Edvin Beasley 4 (office only) $ TBD 512-481-3000 [email protected]

CBD Survey - Page 3 of 3 4/28/2013 Office Buildings Larger Than 30,000 SF - CBD / C / WC Submarkets 4/27/2013 Year No. of Total Bldg Direct Sublet % Quoted Parking Submarket Building Name Building Address Class Built Stories RBA (SF) Available SF Available SF Leased Rent Ratio CBD 100 Congress Ave 100 Congress Ave 1987 A 22 411,536 56,654 16,267 86.23 $29.00 2.6 CBD 1005 Congress Ave 1005 Congress Ave 1982 B 10 95,412 7,250 0 99.72 $34.35 2 CBD 1010 Lavaca 1010 Lavaca 1959 C 4 47,292 100 - CBD 1105 N Lamar Blvd 1105 N Lamar Blvd 1943 C 2 33,252 100 - CBD 1300 Guadalupe St 1300 Guadalupe St 1964 B 4 59,912 8,966 0 100 $25.50 CBD 1711 San Jacinto 1711 San Jacinto B 4 75,000 100 - CBD 1801 North Lamar 1801 Lamar Blvd N 1952 B 2 30,560 100 - CBD 201 E 2nd St 201 E 2nd St 1987 B 11 31,088 100 - CBD 300 E 8th St 300 E 8th St C 11 66,630 100 - CBD 300 West Sixth 300 W 6th St 2001 A 23 459,085 141,589 21,889 88.63 $30.11 3.01 CBD 301 Congress Ave 301 Congress Ave 1991 A 22 418,338 36,303 0 99.03 $25.50 1.6 CBD 314 W 11th St 314 W 11th St 1953 C 5 108,841 100 - CBD 327 Congress Ave 327 Congress Ave 1984 B 6 35,966 3,663 0 100 $20.00 1.43 CBD 411 W 13th St 411 W 13th St 1973 C 10 107,703 100 - CBD 501 E 8th St 501 E 8th St 1971 B 3 56,730 100 - CBD 700 Lavaca 700 Lavaca St 1981 A 15 315,000 0 300 100 Withheld 2 CBD 812 San Antonio 812 San Antonio St 1974 B 7 58,506 20,499 0 74.85 $12.87 3.33 CBD 816 Congress 816 Congress Ave 1984 A 20 433,024 0 6,551 100 $18.00 1.5 CBD 823 Congress Ave 823 Congress Ave 1971 B 16 181,381 21,268 0 88.27 $18.23 1.33 CBD 900 Congress 900 Congress Ave 1965 B 5 64,644 100 - 4 CBD 915 Lavaca Street 915 Colorado St B 8 115,386 100 - CBD 920 Colorado St 920 Colorado St B 11 88,160 100 - CBD Austin Centre 701 Brazos St 1986 A 16 382,896 100 - 3 CBD Bank Of America Center 515 Congress Ave 1975 A 26 279,618 23,615 0 91.55 $25.50 1.55 CBD Brazos Building 815 Brazos St 1956 B 11 53,508 5,001 0 100 $24.00 CBD Brazos Lofts 201 Brazos St 1967 B 2 73,990 100 - CBD Brazos Place- Office/Retail Portion 800 Brazos St 1949 B 11 97,002 33,969 0 65.76 $17.50 CBD Cambridge Tower Condominiums 1801 Lavaca St 1965 B 15 240,000 1,391 691 99.42 $23.00 1.54 CBD Capitol Center 919 Congress Ave 1984 A 15 164,044 10,867 0 93.38 $22.81 1.33 CBD Capitol Tower 206 E 9th St 1986 A 20 172,200 0 7,070 100 $18.10 4.3 CBD Chase Tower 221 W 6th St 1974 A 21 389,503 16,306 10,241 95.81 $25.43 1.93 CBD Cleat Bldg 400 W 14th St 1985 B 2 30,000 100 - 1.5 CBD Frost Bank Tower 401 Congress Ave 2003 A 33 560,674 42,833 4,321 96.28 $32.24 2.5 CBD Grant Plaza 611 E 6th St 1981 B 4 74,415 100 - 2 CBD GSD & M 828-830 W 6th St 1996 B 2 135,409 100 - CBD KTBC TV 119 E 10th St 1945 C 5 35,000 100 - CBD Lavaca Plaza 504 Lavaca St 1983 A 11 190,000 68,398 0 86.93 $22.02 3 CBD Littlefield Building 106 E 6th St 1910 A 9 109,779 9,204 1,000 91.62 $25.00 3 CBD Meridian Executive Plaza 1601 Rio Grande St 1985 B 5 56,219 3,820 0 93.21 $14.00 3.06 CBD Nalle Office Bldg 201-203 Colorado St 1974 B 2 54,828 100 - 1.09 CBD NHP Building 1609 Shoal Creek Blvd 1961 C 3 34,513 100 - 3.33 CBD Norwood Tower 114 W 7th St 1929 A 15 114,486 1,767 0 100 $30.02 1.33 CBD Old Bank Of America Center 501 Congress Ave 1961 B 5 90,044 100 - 1.43 CBD One American Center 600 Congress Ave 1984 A 32 748,000 134,102 11,527 82.07 $25.43 1.72 CBD One Congress Plaza 111 Congress Ave 1987 A 30 518,385 128,511 12,834 81.56 $26.99 1.67 CBD Perry Brooks 720 Brazos St 1954 B 12 133,699 14,337 0 93.98 $22.00 2.75 CBD San Jacinto Bldg 814 San Jacinto Blvd 1965 C 4 36,434 12,153 0 86 $19.20 5 CBD San Jacinto Center 98 San Jacinto Blvd 1987 A 21 404,098 63,435 0 89.34 $26.69 1.54

Page 1 of 3 Office Buildings Larger Than 30,000 SF - CBD / C / WC Submarkets 4/27/2013 Year No. of Total Bldg Direct Sublet % Quoted Parking Submarket Building Name Building Address Class Built Stories RBA (SF) Available SF Available SF Leased Rent Ratio CBD Scarbrough Building 101 W 6th St 1910 A 10 130,789 8,725 725 97.84 $24.44 3 CBD Silicon Labs 1 200 W Cesar Chavez St 2001 A 6 219,828 27,971 0 87.28 $25.00 3 CBD Silicon Labs 2 400 W Cesar Chavez St 2001 A 6 221,000 100 - 3.82 CBD Southwest Tower 211 E 7th St 1973 B 13 220,372 100 - 2.58 CBD Southwestern Bell 120 W 9th St 1980 C 6 269,771 100 - CBD Texas Ass'n of Realtors Bldg 1115 San Jacinto Blvd 1989 B 2 42,425 100 - 3.33 CBD Texas Association Of Broadcasters 502 11th St E 1998 B 4 32,652 100 - CBD Texas Association of Counties HQ 1210 San Antonio St 2003 A 8 83,843 100 - 3.08 CBD Texas Automobile Association 1108 Lavaca St 2008 B 9 83,720 3,594 5,524 95.71 $18.30 CBD Texas Law Center 1414 Colorado St B 6 150,000 100 - CBD Texas Medical Assoc. Bldg 401 W 15th St 1991 B 10 120,000 1,257 0 100 $20.50 4 CBD Texas Restaurant Association 1400 Lavaca St 1971 B 2 34,000 100 - CBD Texas State Teachers Association 316 12th St W 1950 B 6 71,636 100 - CBD Texas Trial Lawyers Association 1220 Colorado St 2000 A 6 32,000 0 840 100 $50.00 2.85 CBD The Bosche-Hogg Building 804 Congress Ave 1897 B 6 41,422 14,382 0 100 $30.00 CBD The Colorado Bldg 702 Colorado St 1935 C 6 76,871 100 - 1.33 CBD The Starr Building 121 W 6th St 1952 B 5 74,262 12,158 0 83.63 $26.78 CBD Travis Bldg 205-209 W 9th St 1925 C 8 86,148 40,531 0 52.95 $20.36 CBD Trinity Center 313 12th St E 2004 B 4 60,000 2,219 0 96.3 $20.00 1.2 CBD TWC Headquarters 101 E 15th St 1959 B 171,399 100 - CBD University of Texas Offices 1616 Guadalupe St 1973 C 7 240,138 100 - CBD Vaughn Building 807 Brazos St 1965 C 10 60,000 1,101 0 98.17 $21.25 1 CBD VFW Building 1011 San Jacinto Blvd 1955 B 6 41,258 9,009 0 78.16 $24.00 3.33 CBD W Austin Hotel & Residence 212 Lavaca St 2011 A 35 55,000 8,697 0 84.19 $35.00 2.1 CBD Wells Fargo Tower 400 W 15th St 1981 A 17 281,196 57,016 0 86.16 $22.63 3 CBD Westgate Tower 1122 Colorado St 1977 B 25 211,024 19,577 0 90.72 Withheld CBD Whole Foods Market 550 Bowie St 2005 B 8 214,982 100 - 3.21 CBD SUBTOTAL: 11,797,926 1,072,138 99,780 90.1% Central 1103 24th W 1103 24th W 1962 C 3 37,052 100 - Central 2400 Pearl St 2400 Pearl St 1960 C 2 32,200 0 - Central 500 W Martin Luther King Blvd 500 W Martin Luther King Blvd 2008 B 5 72,688 100 - Central 800 W 34th St 800 W 34th St 1968 C 2 38,914 2,880 0 92.6 $5.00 Central 801 Medical Plaza 801 W 38th St 2004 B 4 33,622 100 - 5 Central 801 W 34th St 801 W 34th St 1968 C 2 30,862 12,540 0 59.37 $14.00 5.38 Central Austin Groups for the Elderly 3710 Cedar St 1970 C 2 31,400 100 - 8.6 Central Central Park Medical Office 900 W 38th St 1999 B 4 55,229 2,251 0 95.92 $24.00 Central Gabriel's Court 2905 San Gabriel St 1986 B 3 44,285 8,429 0 84.41 $18.00 Central KXAN-TV 906-910 W Martin Luther King Jr Blvd 1964 C 2 35,000 100 - Central Midtown Medical I 901 W 38th St 2004 A 4 82,000 6,520 0 92.05 $24.80 4.75 Central Park At Red River 3200 Red River St 1985 B 3 47,108 1,538 0 98.26 $25.87 3.58 Central Park Terrace 1301 W 25th St 1986 B 5 36,738 100 - 3.33 Central Plaza St David 1015 32nd St E 1990 B 5 87,297 100 - Central University of Texas Offices 2500 Guadalupe St C 4 56,322 100 - Central University Park 3300 N IH-35 2009 A 8 206,657 134,687 0 34.83 $22.00 3.75 CENTRAL SUBTOTAL: 927,374 168,845 0 81.8% West Central 1011 W 5th St 1011 W 5th St 2009 A 4 86,000 100 - West Central Austin Medical Plaza 3705 Medical Pky 1986 B 5 84,410 10,635 7,647 96.73 $27.98 West Central Bailey Square 1111 34th St W 1972 B 4 70,505 2,244 8,440 100 $23.00

Page 2 of 3 Office Buildings Larger Than 30,000 SF - CBD / C / WC Submarkets 4/27/2013 Year No. of Total Bldg Direct Sublet % Quoted Parking Submarket Building Name Building Address Class Built Stories RBA (SF) Available SF Available SF Leased Rent Ratio West Central Capstar Plaza 1703 W 5th St 2009 A 8 115,975 100 - West Central Franklin Square 3724 Jefferson St 1971 B 3 36,735 3,930 0 89.3 $22.00 3.33 West Central Hartland Plaza 1717 W 6th St 1987 A 4 167,303 10,780 0 93.56 $22.51 3.3 West Central Lakeway Medical Plaza 200 Medical Pky 2012 B 3 51,000 11,600 0 77.25 $26.00 5 West Central Medical Park Tower 1301 38th St W 1968 B 7 147,708 6,594 0 95.54 $26.75 4.53 West Central Shoal Creek Professional Center 1500 38th St W 1973 C 5 42,767 617 2,326 98.56 $25.42 5 West Central The Jefferson 1600 W 38th St 1972 B 4 97,552 20,248 0 83.42 $17.00 4 West Central Treaty Oak Office Bldg 1111 W 6th St 1987 A 5 128,000 100 - West Central UT Lake Austin Centre 3001 Lake Austin Blvd 1983 B 4 61,092 100 - 3 West Central West End Center 1214 W 6th St 1960 C 2 50,132 2,811 0 94.39 $24.00 1.5 WEST CENTRAL SUBTOTAL: 1,139,179 69,459 18,413 92.3% Source: CoStar GRAND TOTAL: 13,864,479 1,310,442 118,193 89.7% The information contained herein was obtained from CoStar, therefore no warranty or representation as to the accuracy or completeness of this information can be made by Transwestern.

Page 3 of 3 901 South MoPac Expressway, Building 4, Suite 250, Austin, Texas 78746 | (512).328.5600 | www.transwestern.net/austin Section IV :: Northwest & Far Northwest Submarket Overview Northwest & Far Northwest Austin Summary Northwest & Far Northwest Austin Aerial Northwest & Far Northwest Austin Competitive Building Survey CoStar Survey: CP-E-FNW-N-NE-NW-RR Submarkets Buildings 30K SF or Larger 901 South MoPac Expressway, Building 4, Suite 250, Austin, Texas 78746 | 512.328.5600 | www.transwestern.net/austin Northwest & Far Northwest Austin Overview Spring :: 1Q 2013 CBD

NW/FNW Statistics At A GlanceYear-End Absorption Year-End Vacancy Date CBD Austin CBD Austin The Northwest & FarYE-2012 Northwest (NW/FNW)177,023 Submarket 1,528,830 contains approximately 12.00% 16 million 13.70% square feet of existing multi-tenant office YE-2011space. 167,794 1,650,766 13.30% 17.30% YE-2010 190,764 620,116 15.90% 23.10% YE-2009 (249,634) (743,579) 18.18% 24.88% YE-2008 226,255 469,029 12.46% 19.72% YE-2007 188,838 679,062 15.37% 15.74%  NW/FNW Direct Vacancy as of 1Q13 is 14.3%, down (0.9%) from 15.2% in 4Q12. YE-2006 383,490 1,269,123 18.33% 14.48%  NW/FNW DirectSource: CBREand Sublet Econometrics, Vacancy CoStar as of 1Q13 is 14.4%, down (0.9%) from 15.3% in 4Q12.

 NW/FNW Direct and Sublet YTD Absorption as of 1Q13 is positive 64,001 sf. Total city-wide direct and sublet YTD absorption as of 1Q13 for Austin is positive 198,379 sf. NW/FNW NW/FNW Austin Annual Absorption & Vacancy Year-End Absorption Year-End Vacancy Date NW/FNW Austin NW/FNW Austin YE-2012 677,714 1,528,830 15.30% 13.70% YE-2011 954,599 1,650,766 19.80% 17.30% YE-2010 14,469 620,116 27.60% 23.10% YE-2009 (569,424) (743,579) 28.16% 24.88% YE-2008 (167,643) 469,029 21.56% 19.72% YE-2007 192,639 679,062 12.47% 15.74% YE-2006 546,497 1,269,123 11.13% 14.48% Source: CBRE Econometrics, CoStar

 Average asking rent for the NW/FNW submarket for Class A space is $28.21 psf gross, or approximately $15.71 psf NNN,SW as of 1Q13 (assumes $12.50 psf average Class A operating expenses for 2013, however . Sources: Transwesternsome MarketWatch, buildings CoStar, CBRE have MarketView, operating Cushman &expenses Wakefield MarketB aseat high, Buls Sublease as $15.00). Report Year-End Absorption Year-End Vacancy Date SW Austin SW Austin NW/FNW LargeYE-2012 Contiguous205,677 Block Direct 1,528,830 Vacancies 9.90% 13.70%

As of 1Q12, there areYE-2011 18 contiguous367,752 blocks of space 1,650,766larger than 20,000 12.30% square feet available 17.30% for direct lease in the NW/FNW SubmarketsYE-2010 totaling 1,295,347295,845 square feet. 620,116 Of these, 16 are 16.00% between 20,000 23.10% and 99,000 square feet, and 3 are larger than 100,000 square feet. The larger blocks include the following: YE-2009 (166,825) (743,579) 19.59% 24.88%  7700 ParmerYE-2008 B - 340,000 sf 307,854available 469,029 17.07% 19.72%  Research Park Place II (Building 8) - 105,067 sf available  The AvallonYE-2007 V - 107,002 sf available(16,144) 679,062 15.87% 15.74% YE-2006 312,429 1,269,123 7.12% 14.48% Source: CBRE Econometrics, CoStar continued NW/FNW Large Contiguous Block Sublease Space

There is 1 large block of contiguous sublease space available in the NW/FNW submarkets totaling 36,435 square feet. Combined with the large block direct available space, the NW/FNW submarkets contain 19 large contiguous blocks of available space greater than 20,000 square feet each, totaling 1,331,782 square feet. See “Large Contiguous Office Vacancy Survey” in Section I for a complete list of the large block availability.

Austin Submarkets

CBD Central Business District RR C Central E East FNW Far Northwest

FNW Dessau Rd N North P McNeil Drive a rm er Lane NE Northeast N NW Northwest RR Round Rock NW Burnet Rd NE S South SE Southeast C Lamar Blvd SW Southwest 45th St

51st St SW 35th St Note that for Austin in general, MLK E the majority of Office space is CBD concentrated in the Northwest, Far Northwest, CBD and Southwest Lamar Blvd.

Ben White submarkets - mostly west of IH-35. Industrial space is generally located in William CannonS Brodie Lane the Southeast, Northeast, North and SE Austin-Bergstrom International Airport Round Rock submarkets, and for the most part is east of IH-35. Slaughter Ln

AUSTIN SUBMARKETS

Sources: Transwestern, CoStar, CBRE Market View, Cushman & Wakefield MarketWatch, Buls-Hodge Sublease Report Highi way 183 Parmer Lane Avery Ranch Rd Dell La Headquarters Emerson Frontera TOLL NORTHWEST AUSTIN Lakeline Davis (Frontera Vista) Spring 45 TOLL Frontera SUBMARKET Crossings at 45 Lakeline Crossing

TOLL 45 State FM 1325 Lakeline Amber Farm Austin White Travesia Mall Oaks Corp. Park 35 Lime Company McNeil Pecan Park Aspen Tower of Lake LOOP the Hills 7700 Parmer 1 (frmly Freescale) Highi way 183 Anderson Mill Parmer Lane

Highi way 6200 McNeil Howard Abbott Labs Research Blvd

Flextronics Highflex 35 (frmr Solectron) Parmer Apple Biz Park Research Riata Corp. Howard Park Park Riata Gateway 3M Techridge Highi way & 6200 The Parmer Lane Pavillions Highi way Dell 183 Domain LOOP at (Closed) Gateway 1 Techridge Barton Creek Nat’l Canyonlands Preserve Instruments Braker Park Stratum Pointe Central Dell Quarry Four Lake/Oaks IBM (Closed) Points Domain The Braker Avallon Shops at Arboretum 3M River Great Hills Stonebridge Place JJ Pickle Prominent Research 22222222 Point Arboretum Center Westech Gateway LOOP 360 Park 22 Lakewood 360 on the Park 35 StoneCliff

Ladera Reserve at Highi way Bend Bull Creek 8303 MoPac 183 LOOP 360 LOOP 1 Northwest & Far Northwest Austin Competitive Office Market Survey First Quarter 2013 (As of April 1, 2013)

Building Name Bldg Year Square Feet % Occup Core Lease Asking Escal- Est. 2013 T.I. Parking Address Class or Built/ Total Direct Sublease (Excluding Factor Term Rental ation Oper. Allowance Type, Ratio, Owner/Contact Type # Flrs NRA Available Available Sublse) (%) (Mo.s) Rate(s) Provision Exp. PSF Charges 3307 Northland (Balcones Office Park) 1983 3.33/1000 3307 Northland B 98,888 1,789 0 98% 16.00% 36-120 $22.00 Gross/BY $9.24 Neg. Surface Kucera Co. - Jeff Henley 5 512/346-0292 [email protected] 5806 Mesa 1985 3.33/1000 5806 Mesa Drive B 69,477 0 0 100% 18.00% 36-120 $24.00 Gross/BY $9.24 Neg. Surface/Covered Kucera Co. - Jeff Henley 3 512/346-0292 [email protected] 8303 Mopac 1987 3.80/1000 8303 Mopac Expressway, N. A 246,869 13,107 0 95% 18.00% 36-120 $17.50 Net $11.50 Neg. Covered AQUILA Commercial - Bethany Perez/Mike Murphy 4 512/684-3800 [email protected] 9130 Jollyville 1985 3.93/1000 9130 Jollyville B 61,949 0 0 100% 15.00% 36-120 $14.00 Net $10.87 Neg. Surface Wes Walters Realty - Matt Stanley 3 512/345-2060 [email protected] 9500 Arboretum 1987 4.00/1000 9500 Arboretum Blvd. A 182,331 3,807 0 98% 15.72% 36-120 $22.00 Net $11.75 Neg. Covered AQUILA Commercial - Ben Tolsen/Chad Barrett 6 512/684-3800 [email protected] Amber Oaks A 1999 5.0/1000 13640 Briarwick Drive B 78,164 14,572 0 81% 15.00% 60-120 $17.00 Net $10.59 Neg. Surface CBRE - Casey Ford/Troy Holme 2 512/482-5570 [email protected] Amber Oaks B 1999 5.0/1000 13640 Briarwick Drive B 44,184 0 0 100% 12.00% 60-120 $17.00 Net $8.61 Neg. Surface CBRE - Casey Ford/Troy Holme 2 512/482-5570 [email protected] Amber Oaks C 1999 5.0/1000 13640 Briarwick Drive B 44,184 0 0 100% 12.00% 60-120 $17.00 Net $8.84 Neg. Surface CBRE - Casey Ford/Troy Holme 1 512/482-5570 [email protected] Amber Oaks D 1999 5.0/1000 13640 Briarwick Drive B 28,733 0 0 100% 12.00% 60-120 $17.00 Net $9.44 Neg. Surface CBRE - Casey Ford/Troy Holme 1 512/482-5570 [email protected] Amber Oaks E 2001 5.0/1000 13640 Briarwick Drive B 63,111 0 0 100% 12.00% 36-120 $17.00 Net $8.54 Neg. Surface CBRE - Casey Ford/Troy Holme 2 512/482-5570 [email protected] Amber Oaks F 2001 5.0/1000 13640 Briarwick Drive B 78,164 0 0 100% 12.00% 60-120 $17.00 Net $6.98 Neg. Surface CBRE - Casey Ford/Troy Holme 2 512/482-5570 [email protected] Amber Oaks G 2001 5.0/1000 13640 Briarwick Drive B 101,045 16,645 0 84% 12.00% 36-120 $17.00 Net $10.02 Neg. Surface CBRE - Casey Ford/Troy Holme 2 512/482-5570 [email protected] Amber Oaks H 2007 5.0/1000 9501 Amberglen Drive B 101,045 49,468 0 51% 15.00% 60-120 $17.00 Net $9.50 Neg. Surface CBRE - Casey Ford/Troy Holme 2 512/482-5570 [email protected]

NW Austin Office Survey - Pg 1 of 11 4/28/2013 Northwest & Far Northwest Austin Competitive Office Market Survey First Quarter 2013 (As of April 1, 2013)

Building Name Bldg Year Square Feet % Occup Core Lease Asking Escal- Est. 2013 T.I. Parking Address Class or Built/ Total Direct Sublease (Excluding Factor Term Rental ation Oper. Allowance Type, Ratio, Owner/Contact Type # Flrs NRA Available Available Sublse) (%) (Mo.s) Rate(s) Provision Exp. PSF Charges Amber Oaks I 2007 5.0/1000 9401 Amberglen Drive B 50,223 10,828 0 78% 0.00% 60-120 $17.00 Net $8.84 Neg. Surface CBRE - Casey Ford/Troy Holme 1 512/482-5570 [email protected] Amber Oaks J 2002 5.0/1000 13640 Briarwick Drive B 50,233 5,765 0 89% 12.00% 60-120 $17.00 Net $11.86 Neg. Surface CBRE - Casey Ford/Troy Holme 1 512/482-5570 [email protected] Arboretum Atrium 1984 3.5/1000 9737 Great Hills Trail A 90,280 0 0 100% 18.00% 36-120 $18.00 Net $12.86 Neg. Surface Moore & Associates - Julia Finney 3 512/476-0919 [email protected] Arboretum Plaza One 1984 3.60/1000 9442 Capital Of Texas Hwy., N. A 146,347 13,372 0 91% 14.97% 36-120 $21.00 Net $12.89 Neg. Covered CBRE - Casey Ford 9 512/482-5570 [email protected] Arboretum Plaza Two 1984 3.60/1000 9442 Capital Of Texas Hwy., N. A 98,828 0 0 100% 14.97% 36-120 $21.00 Net $12.89 Neg. Covered CBRE - Casey Ford 6 512/482-5570 [email protected] Arboretum Point 1987 4.00/1000 9505 Arboretum Blvd. A 150,033 0 0 100% 15.20% 36-120 $20.00 Net $11.00 Neg. Covered Transwestern - Greg Johnson 9 512/328-5600 [email protected] Aspen Lake 2007 4.00/1000 13809 Highway 183 A 204,940 0 0 100% 17.00% 60-120 $18.50 Net $10.44 Neg. Covered AQUILA Commercial - Bart Matheney/Ben Tolson 4 512/684-3800 [email protected] Atrium Office Centre 1983 4.00/1000 8701 North MoPac B 119,858 31,268 0 74% 17.00% 36-60 $11.50 Net $8.27 Neg. Surface Kucera Co. - Doug Rauls 4 512/346-0025 [email protected] Austin Oaks (12 Bldg Office Park) '73 to '85 4/1000 Executive Center Drive & Woodhollow Drive B 445,545 26,900 0 94% 18.00% 24-60 $15.00 Net $8.60 to Neg. Surface Riverside Resources - Sam Laine/Win Smith 2 to 4 $8.95 512/476-7806 [email protected] Avallon - Building 1 1986 4/1000 10415 Morado Circle B 60,059 1,700 0 97% 16.00% 36-120 $17.50 to Net $10.98 Neg. Covered Younger Partners - Lauren Spaeth/Bo Beacham 3 $18.50 512/415-7745 [email protected] Avallon - Building 2 1986 4/1000 10415 Morado Circle B 33,135 8,786 0 73% 16.00% 36-120 $17.50 to Net $10.98 Neg. Covered Younger Partners - Lauren Spaeth/Bo Beacham 3 $18.50 512/415-7745 [email protected] Avallon - Building 3 1986 4/1000 10415 Morado Circle B 32,765 16,525 0 50% 16.00% 36-120 $17.50 to Net $10.98 Neg. Covered Younger Partners - Lauren Spaeth/Bo Beacham 3 $18.50 512/415-7745 [email protected] Avallon - Building 4 2001 4/1000 10415 Morado Circle B 85,916 14,574 0 83% 16.00% 36-120 $17.50 to Net $10.98 Neg. Surface Younger Partners - Lauren Spaeth/Bo Beacham 3 $18.50 512/415-7745 [email protected]

NW Austin Office Survey - Pg 2 of 11 4/28/2013 Northwest & Far Northwest Austin Competitive Office Market Survey First Quarter 2013 (As of April 1, 2013)

Building Name Bldg Year Square Feet % Occup Core Lease Asking Escal- Est. 2013 T.I. Parking Address Class or Built/ Total Direct Sublease (Excluding Factor Term Rental ation Oper. Allowance Type, Ratio, Owner/Contact Type # Flrs NRA Available Available Sublse) (%) (Mo.s) Rate(s) Provision Exp. PSF Charges Avallon - Building 5 1997 4/1000 10415 Morado Circle B 105,000 0 0 100% 16.00% 36-120 $17.50 to Net $10.98 Neg. Surface Younger Partners - Lauren Spaeth/Bo Beacham 3 $18.50 512/415-7745 [email protected] Balcones Center 1985 3.5/1000 11149 Research B 74,876 6,643 0 91% 15.00% 36-120 $22.00 Gross/BY $9.23 Neg. Covered Goodwin Partners - Stan Malachowski 4 512/502-7520 [email protected] Braker Pointe I 2002 4.00/1000 10801-1 N. Mopac Expressway A 77,454 11,200 4,072 86% 14.00% 36-120 $17.00 Net $11.81 Neg. Surface AQUILA Commercial - Bart Matheney/Chad Barrett 3 15% Covered 512/684-3800 [email protected] Braker Pointe II 2002 4.00/1000 10801-2 N. Mopac Expressway A 103,114 7,048 7,946 93% 14.00% 36-120 $17.00 Net $11.28 Neg. Surface AQUILA Commercial - Bart Matheney/Chad Barrett 4 15% Covered 512/684-3800 [email protected] Bridgepointe Plaza I 1985 5918 W Courtyard Dr. B 102,424 0 0 100% 17.00% 12-60 $20.00 Net $11.03 Neg. 3.33/1000 Peloton CRE - Matt Frizzell/Brian Liverman 5 Covered 512/814-3400 [email protected] Bridgepointe Plaza II 1992 5918 W Courtyard Dr. B 71,076 13,248 0 81% 17.00% 12-60 $20.00 Net $11.03 Neg. 3.33/1000 Peloton CRE - Matt Frizzell/Brian Liverman 4 Covered 512/814-3400 [email protected] Bridgepoint Square I 1984 3.50/1000 6300 Bridgeoint Pkwy. A 84,692 12,003 0 86% 15.00% 36-120 $18.50 Net $10.99 Neg. Covered Oxford Commercial - Kevin Kimbrough/Brent Powdrill 5 512/474-2400 [email protected] Bridgepoint Square II 1997 4.17/1000 6300 Bridgepoint Pkwy. A 92,459 1,589 0 98% 15.00% 36-120 $18.50 Net $10.99 Neg. Covered Oxford Commercial - Kevin Kimbrough/Brent Powdrill 5 512/474-2400 [email protected] Bridgepoint Square III 1997 3.5/1000 6300 Bridgepoint Pkwy. A 78,352 15,558 0 80% 15.00% 36-120 $18.50 Net $10.99 Neg. Covered Oxford Commercial - Kevin Kimbrough/Brent Powdrill 5 512/474-2400 [email protected] Bridgepoint Square IV 1997 4.15/1000 6300 Bridgepoint Pkwy. A 109,175 4,343 0 96% 15.00% 60-120 $18.50 Net $10.99 Neg. Covered Oxford Commercial - Kevin Kimbrough/Brent Powdrill 5 512/474-2400 [email protected] Bridgepoint Square V 1997 3.3/1000 6300 Bridgepoint Pkwy. A 76,793 4,103 0 95% 15.0% 60-120 $18.50 Net $10.99 Neg. Covered Oxford Commercial - Kevin Kimbrough/Brent Powdrill 4 512/474-2400 [email protected] Chancellor Centre 1985 3.33/1000 8627 North MoPac B 46,413 2,806 3,822 94% 15.0% 36-60 $21.50 Gross/BY $9.06 Neg. Surface Kucera Co. - Jeff Henley 4 512/346-0292 [email protected] Colina West 1985 3.3/1000 8834 Cap. Of Tx. Hwy B 69,299 15,845 1,896 77% 18.00% 36-60 $15.75 Net $10.65 Neg. Covered/Surface Equitable Comm. Realty - Matt Levin 3 512/505/0001 [email protected]

NW Austin Office Survey - Pg 3 of 11 4/28/2013 Northwest & Far Northwest Austin Competitive Office Market Survey First Quarter 2013 (As of April 1, 2013)

Building Name Bldg Year Square Feet % Occup Core Lease Asking Escal- Est. 2013 T.I. Parking Address Class or Built/ Total Direct Sublease (Excluding Factor Term Rental ation Oper. Allowance Type, Ratio, Owner/Contact Type # Flrs NRA Available Available Sublse) (%) (Mo.s) Rate(s) Provision Exp. PSF Charges Crossings at Lakeline I 2008 4.0/1000 11001 Lakeline Boulevard A 114,726 19,994 0 83% 16.20% 36-120 $16.50 Net $9.50 Neg. Surface Jones Lang LaSalle - Jeff Pace 3 512/225-2700 [email protected] Crossings at Lakeline II 2008 4.0/1000 11001 Lakeline Boulevard A 117,548 13,148 0 89% 16.20% 36-120 $16.50 Net $9.50 Neg. Surface Jones Lang LaSalle - Jeff Pace 3 512/225-2700 [email protected] Courtyard Atrium 1982 3.33/1000 5910 Courtyard Drive B 32,426 7,347 0 77% 20.84% 36-120 $22.50 Gross/BY $9.73 Neg. Surface/Covered Kucera Co. - Doug Rauls/Cheryl Smith 3 512/346-0025 [email protected] Domain 2 2000 4/1000 11400 Burnet Road A 152,012 0 0 100% 16.50% 36-120 $20.00 Net $8.24 + Neg. Surface Endeavor - Jonathan Tate/Travis Dunaway 3 Util. 512/682-5570 [email protected] Domain 5 2000 4/1000 11400 Burnet Road A 179,006 11,207 0 94% 16.50% 36-120 $21.00 Net $8.24 + $25.00 Surface/Covered Endeavor - Jonathan Tate/Travis Dunaway 3 Util. 512/682-5570 [email protected] Domain Gateway 2009 4/1000 2900 Esperanza A 173,962 0 0 100% 13.70% 36-120 $22.00 Net $9.00 $31.00 Surface/Covered Transwestern - Greg Johnson 5 512/328-5600 [email protected] Echelon III & IV 1982 & 84 3.3/1000 9420-9430 Research Blvd B 135,058 22,541 18,950 83% 15% - 16% 36-120 $23.50 Gross/BY $8.31 Neg. Surface Congress Holdings - Joel Sher/Jeff Henley 4 512/478-1005 [email protected] Four Points Centre I & II 2008 4/1000 11305 Four Points Drive A 192,061 51,909 0 73% 17.10% 36-120 $17.00 Net $10.11 $35.00 Covered/Surface Oxford Commercial - Mark Greiner/Brett Arabie 3 512/474-2400 [email protected] Great Hills Corporate Center I 1984 3.6/1000 9020 Capital of Texas Hwy., N. A 56,200 4,918 0 91% 16.50% 24-36 $25.00 Gross/BY $9.96 $2/SF/YR Surface Kucera Co. - Jeff Henley 3 512/346-0292 [email protected] Great Hills Corporate Center II 1986 3.56/1000 9020 Capital of Texas Hwy., N. A 57,988 21,097 0 64% 16.50% 24-36 $25.00 Gross/BY $9.96 $2/SF/YR Covered Kucera Co. - Jeff Henley 3 512/346-0292 [email protected] Great Hills Corporate Center III 1988 3.57/1000 9020 Capital of Texas Hwy., N. A 85,061 25,324 0 70% 16.50%-17.6% 24-36 $25.00 Gross/BY $9.96 $2/SF/YR Surface Kucera Co. - Jeff Henley 3 512/346-0292 [email protected] Great Hills Plaza 1984 3.5/1000 9600 Great Hills Trail B 139,252 6,135 2,500 96% 15.99% 36-120 $18.00 Net $11.09 Neg. Surface Transwestern - Mike Brown/Brandon Lester 3 512/328-5600 [email protected] Greystone Plaza 1985 3.6/1000 7200 N. Mopac A 78,248 4,918 0 94% 18.00% 36-120 $27.00 Gross/BY $9.88 Neg. Surface/Covered Kucera Co. - Doug Rauls/Jeff Henley 4 512/346-0292 [email protected]

NW Austin Office Survey - Pg 4 of 11 4/28/2013 Northwest & Far Northwest Austin Competitive Office Market Survey First Quarter 2013 (As of April 1, 2013)

Building Name Bldg Year Square Feet % Occup Core Lease Asking Escal- Est. 2013 T.I. Parking Address Class or Built/ Total Direct Sublease (Excluding Factor Term Rental ation Oper. Allowance Type, Ratio, Owner/Contact Type # Flrs NRA Available Available Sublse) (%) (Mo.s) Rate(s) Provision Exp. PSF Charges Heritage Plaza 1986 3.33/1000 7800 North MoPac A 74,736 7,260 0 90% 18.30% 36-60 $26.00 Gross/BY $10.81 Neg. Surface Intco Properties - Mary Ann Loga 3 40% Covered 512/794-8663 [email protected] Kaleido I & II 1984 3.3/1000 9390 Research Blvd. B 73,149 8,417 0 88% 22.73% 36-120 $22.50 Gross/BY $8.77 Neg. Surface Kucera Co. - Doug Rauls/Cheryl Smith 4 512/346-0025 [email protected] Ladera Bend 1 2008 3.5/1000 7300 FM 2222 A 56,466 0 0 100% 16.00% 60-120 $18.50 Net $9.70 Neg. Surface / Covered HPI Real Estate - Richard Paddock/Adri Baker 2 512/835-4455 [email protected] Ladera Bend 2 2008 3.5/1000 7300 FM 2222 A 45,732 3,930 0 91% 16.00% 60-120 $18.50 Net $9.83 Neg. Surface / Covered HPI Real Estate - Richard Paddock/Adri Baker 2 512/835-4455 [email protected] Ladera Bend 3 2008 3.5/1000 7300 FM 2222 A 56,196 0 0 100% 16.00% 60-120 $18.50 Net $9.81 Neg. Surface / Covered HPI Real Estate - Richard Paddock/Adri Baker 2 512/835-4455 [email protected] Lakeview Plaza 1999 4.18/1000 4516 Seton Center Parkway B 120,956 17,946 0 85% 16.50% 36-120 $14.00 Net $10.27 Neg. Surface Kucera Co. - Doug Rauls 3 512/346-0025 [email protected] Lakewood in the Park A 1996 4/1000 7600 N. Capital of Texas Hwy. B 30,000 0 0 100% 15.00% 36-120 $14.75 Net $8.46 non Neg. Surface Oxford Commercial - Kevin Kimbrough/Brent Powdrill 2 medical 512/474-2400 [email protected] Lakewood in the Park B 1998 4/1000 7600 N. Capital of Texas Hwy. B 102,086 15,819 0 85% 14.00% 36-120 $15.50 Net $9.28 Neg. Surface Oxford Commercial - Kevin Kimbrough/Brent Powdrill 3 512/474-2400 [email protected] Lakewood in the Park C 1998 4.34/1000 7600 N. Capital of Texas Hwy. B 78,596 1,819 0 98% 15.00% 36-120 $15.50 Net $9.52 Neg. Surface Oxford Commercial - Kevin Kimbrough/Brent Powdrill 2 512/474-2400 [email protected] Lakewood Center I 1999 3.8/1000 6801 N. Capital of Texa Hwy A 45,020 0 0 100% 16.00% 36-120 $17.00 Net $11.50 Neg. Surface CBRE - Troy Holme/Katie Ekstrom 2 512/499-4900 [email protected] Lakewood Center II 2000 3.7/1000 6801 N. Capital of Texa Hwy A 44,672 13,236 0 70% 16.00% 36-120 $17.00 Net $11.50 Neg. Surface CBRE - Troy Holme/Katie Ekstrom 2 512/499-4900 [email protected] Millennium Building 1986 3.5/1000 6504 Bridge Point Parkway A 125,612 0 0 100% 15.00% 36-60 $18.50 Net $10.22 Neg. Surface/Covered Transwestern - Hale Umstattd 5 512/328-5600 [email protected] Northpoint Centre I & II 1985 3.7/1000 6836 Austin Center Blvd. A 149,730 2,443 0 98% 15.00% 36-120 $18.00 Net $10.39 Neg. Surface/Covered Kucera Co. - David Stojanik 3 512/346-0025 [email protected]

NW Austin Office Survey - Pg 5 of 11 4/28/2013 Northwest & Far Northwest Austin Competitive Office Market Survey First Quarter 2013 (As of April 1, 2013)

Building Name Bldg Year Square Feet % Occup Core Lease Asking Escal- Est. 2013 T.I. Parking Address Class or Built/ Total Direct Sublease (Excluding Factor Term Rental ation Oper. Allowance Type, Ratio, Owner/Contact Type # Flrs NRA Available Available Sublse) (%) (Mo.s) Rate(s) Provision Exp. PSF Charges Oak Creek Plaza 2009 4/1000 3107 Oak Creek Drive A 50,000 6,647 0 87% 13.00% 36-120 $18.00 Net $8.18 Neg. Surface/Covered Oxford Commercial - Kevin Kimbrough/Brent Powdrill 2 512/474-2400 [email protected] Oakpointe 1985 3.33/1000 9111 Jollyville Road B 66,814 5,813 0 91% 20.00% 24-60 $19.50 Gross/BY $7.92 Neg. Surface Kucera Co. - Jeff Henley 2 512/346-0292 [email protected] Offices at the Domain - Phase I 2006 3.8/1000 11401 Century Oaks Terrace A 92,955 3,397 0 96% 18.00% 36-120 $19.50 Net $12.74 $30.00 Covered Transwestern - Greg Johnson 4 below ceiling 512/328-5600 [email protected] Offices at the Domain - Phase II 2009 4/1000 10910 Domain Drive A 75,509 0 0 100% 18.00% 36-120 $19.50 Net $11.55 Neg. Covered Transwestern - Greg Johnson 3 512/328-5600 [email protected] One Far Wet 1983 3.57/1000 3410 Far West Blvd. B 70,642 276 0 100% 15.00% 36-60 $25.00 Gross/BY $9.38 Neg. Surface/Covered Kucera Co. - Jeff Henley 3 512/346-0292 [email protected] The Park at 8300 N. MoPac 1999 4.5/1000 8300 North MoPac A 93,317 23,163 0 75% 15.00% 36-120 $18.00 Net $12.58 Neg. Surface/Covered CBRE - Troy Holme/Katie Ekstrom 3 512/499-4900 [email protected] Park Centre Bldg. 1 2000 4.0/1000 8601 Ranch Road 2222 A 89,822 21,952 0 76% 17.87% 36-120 $17.00 Net $10.83 Neg. Surface/Covered Transwestern - Mike Brown/Brandon Lester 4 512/328-5600 [email protected] Park Centre Bldg. 2 2000 4.0/1000 8601 Ranch Road 2222 A 35,095 0 0 100% 17.87% 36-120 $17.00 Net $10.83 Neg. Surface/Covered Transwestern - Mike Brown/Brandon Lester 2 512/328-5600 [email protected] Park Centre Bldg. 3 2000 4.0/1000 8601 Ranch Road 2222 A 78,270 24,538 0 69% 17.87% 36-120 $17.00 Net $10.83 Neg. Surface/Covered Transwestern - Mike Brown/Brandon Lester 4 512/328-5600 [email protected] Park Central I 2007 4.64/1000 12345 N. Lamar Boulevard A 114,091 64,137 0 44% 12.00% 36-120 $16.00 Net $10.09 Neg. Surface/Covered Peloton CRE - Kevin Granger/Matt Frizzell 3 512/814-3400 [email protected] Park Forest A & B 2002 4/1000 4201 West Parmer Lane B 59,422 6,422 0 89% 18.00% 36-60 $13.00 Net + E $6.15 Neg. Surface Oxford Commercial - Brent Powdrill 2 + E 512/474-2400 [email protected] Park North I & II 1981 3.5/1000 8200 & 8240 North MoPac B 133,568 10,791 0 92% 15.00% 12-120 $14.50 Net $11.50 Neg. Surface Haverwood Management LLC - Luke Wood 3 512/241-0017 [email protected] Parkline 2008 5.15/1000 11200 Lakeline Blvd. B 90,000 9,504 0 89% 0.00% 36-60 $15.00 Net $4.86 Neg Surface Asterra Prop. - Lucian Morehead 1 512/744-9156 [email protected]

NW Austin Office Survey - Pg 6 of 11 4/28/2013 Northwest & Far Northwest Austin Competitive Office Market Survey First Quarter 2013 (As of April 1, 2013)

Building Name Bldg Year Square Feet % Occup Core Lease Asking Escal- Est. 2013 T.I. Parking Address Class or Built/ Total Direct Sublease (Excluding Factor Term Rental ation Oper. Allowance Type, Ratio, Owner/Contact Type # Flrs NRA Available Available Sublse) (%) (Mo.s) Rate(s) Provision Exp. PSF Charges Parmer Business Park A(7), B(8), C(9) 1999 5.0/1000 5300 Riata Park Ct. B 123,731 0 0 100% 0.00% 60-120 $16.00 Net $4.60 + $24.00 Surface Endeavor - Jonathan Tate/Travis Dunaway 1 E&J 512/582-5500 [email protected] Parmer Business Park D, E, F 2001 5.0/1000 5301 Riata Park Ct. B 107,283 0 36,435 100% 0.00% 60-120 $16.00 Net $4.60 + $24.00 Surface Endeavor - Jonathan Tate/Travis Dunaway 1 E&J 512/582-5500 [email protected] Pecan Park I 2008 5.0/1000 10700 Pecan Park Boulevard A 136,643 38,117 0 72% 17.00% 36-120 $17.50 Net $9.45 Neg. Surface T. Stacy & Assoc. - Robert Paine 4 512/476-9999 [email protected] Pecan Park II 2008 5.0/1000 10700 Pecan Park Boulevard A 136,245 43,381 0 68% 17.00% 36-120 $16.50 Net $9.45 Neg. Surface DR Horton (Mark Winter) c/o CBRE-Jerry Frey/Casey Ford 4 512/499-4900 [email protected] Plaza 7000 1999 4.00/1000 7000 Mopac Expressway, N. A 155,076 2,275 3,064 99% 17.97% 36-120 $20.00 Net $10.25 $20.00-$22.00 Surface/Covered Kucera Co. - Jeff Henley/Doug Rauls 4 512/346-0025 [email protected] Prominent Point I 1986 4/1000 8310 Capital of Texas Highway B 151,092 12,669 0 92% 18.00% 36-120 $20.00 Net $11.47 Neg Surface/Covered AQUILA Commercial - Chad Barrett/Bethany Perez 4 512/684-3800 [email protected] Prominent Point II 2007 4/1000 8310 Capital of Texas Highway A 105,830 0 0 100% 17.00% 36-120 $21.00 Net $11.91 Neg Surface/Covered AQUILA Commercial - Chad Barrett/Bethany Perez 3 512/684-3800 [email protected] Quarry Lake Business Center 1996 5.23/1000 4515 Seton Center Parkway B 117,512 18,138 0 85% 15.00% 36-120 $20.00 Net $8.51 Neg Surface/Covered Kucera Co. - Doug Rauls 3 512/346-0025 [email protected] Quarry Oaks Atrium I 1999 5/1000 10901 Stonelake Blvd. A 165,435 0 0 100% 14.57% 36-120 $22.00 Net $10.50 Neg Covered Riverside Resources - Jeremy Smitheal/Sam Laine 3 512/476-7806 [email protected] Quarry Oaks Atrium II 2008 4/1000 10901 Stonelake Blvd A 126,000 2,500 0 98% 20.00% 60-120 $22.00 Net $9.50 Neg Covered/Surface Riverside Resources - Jeremy Smitheal/Sam Laine 3 512/476-7806 [email protected] Research Park Building 5 (The Motive Bldg) 2001 4/1000 12515-5 Research Blvd B 117,314 39,237 0 67% 17.00% 36-120 $16.50 Net $10.09 Neg. Surface/Covered Endeavor - Jonathan Tate/Travis Dunaway 3 512/682-5570 [email protected] Research Park Place 7 (Bldg 1) 2007 4/1000 12515 - 7 Research A 125,701 20,338 0 84% 17.00% 36-120 $17.00 Net $10.41 Neg. Surface AQUILA Commercial - Chad Barrett/Bethany Perez 4 512/684-3800 [email protected] Research Park Place 8 (Bldg 2) 2007 4/1000 12515 - 8 Research A 125,700 105,065 0 16% 17.00% 36-120 $17.00 Net $10.41 Neg. Surface AQUILA Commercial - Chad Barrett/Bethany Perez 4 512/684-3800 [email protected]

NW Austin Office Survey - Pg 7 of 11 4/28/2013 Northwest & Far Northwest Austin Competitive Office Market Survey First Quarter 2013 (As of April 1, 2013)

Building Name Bldg Year Square Feet % Occup Core Lease Asking Escal- Est. 2013 T.I. Parking Address Class or Built/ Total Direct Sublease (Excluding Factor Term Rental ation Oper. Allowance Type, Ratio, Owner/Contact Type # Flrs NRA Available Available Sublse) (%) (Mo.s) Rate(s) Provision Exp. PSF Charges Research Park Plaza I 1999 4/1000 12401 Research A 136,068 32,422 0 76% 15.00% 36-120 $19.50 Net $10.65 Neg. Covered HPI Real Estate - Richard Paddock/Adri Baker 4 512/835-4455 [email protected] Research Park Plaza II 1999 4/1000 12401 Research A 135,813 0 0 100% 17.44% 36-120 $19.50 Net $10.65 Neg. Covered HPI Real Estate - Richard Paddock/Adri Baker 4 512/835-4455 [email protected] Research Park Plaza III 2001 4/1000 12301 Research A 173,530 0 0 100% 15.42% 36-120 $21.00 Net $10.52 Neg. Covered CBRE - Casey Ford/Troy Holme 4 512/499-4900 [email protected] Research Park Plaza IV 2001 4/1000 12301 Research A 184,159 7,443 0 96% 12.93% 36-120 $21.00 Net $11.32 Neg. Covered CBRE - Casey Ford/Troy Holme 4 512/499-4900 [email protected] Reserve at Bull Creek A 2000 3.81/1000 7501 N. Capital of Texas Hwy. B 43,782 11,179 0 74% 18.00% 36-120 $14.50 Net $10.01 Neg. Surface Oxford Commercial - Kevin Kimbrough/Brent Powdrill 2 512/474-2400 [email protected] Reserve at Bull Creek B 2000 3.81/1000 7501 N. Capital of Texas Hwy. B 43,713 0 0 100% 18.00% 36-120 $14.50 Net $10.01 Neg. Surface Oxford Commercial - Kevin Kimbrough/Brent Powdrill 2 512/474-2400 [email protected] Reserve at Bull Creek C 2000 3.81/1000 7501 N. Capital of Texas Hwy. B 43,695 9,146 0 79% 18.00% 36-120 $14.50 Net $10.01 Neg. Surface Oxford Commercial - Kevin Kimbrough/Brent Powdrill 2 512/474-2400 [email protected] Reunion Park 1979 3.7/1000 8501 North MoPac B 118,142 27,569 0 77% 15.00% 36-120 $15.50 Net $9.40 Neg. Surface CBRE - Katie Ekstrom/Troy Holme 4 512/499-4900 [email protected] Riata Corporate Park Bldg 2 1999 4.00/1000 12301-B Riata Trace Parkway A 63,372 0 0 100% 18.00% 36-120 $18.50 Net $10.50 Neg. Surface HPI Real Estate - Richard Paddock/Adri Baker 3 512/835-4455 [email protected] Riata Corporate Park Bldg 3 1999 4.00/1000 12331-A Riata Trace Parkway A 63,849 55,614 0 13% 16.00% 36-120 $18.50 Net $10.50 Neg. Surface HPI Real Estate - Richard Paddock/Adri Baker 3 512/835-4455 [email protected] Riata Corporate Park Bldg 4 1999 4.00/1000 12331-B Riata Trace Parkway A 93,737 0 0 100% 16.00% 36-120 $18.50 Net $10.50 Neg. Surface HPI Real Estate - Richard Paddock/Adri Baker 3 512/835-4455 [email protected] Riata Corporate Park Bldg 5 1999 4.00/1000 12357-A Riata Trace Parkway A 93,828 30,926 0 67% 16.00% 36-120 $18.50 Net $10.50 Neg. Surface HPI Real Estate - Richard Paddock/Adri Baker 3 512/835-4455 [email protected] Riata Corporate Park Bldg 6 2000 4.00/1000 12357-B Riata Trace Parkway A 93,835 0 0 100% 16.00% 36-120 $18.50 Net $10.50 Neg. Surface HPI Real Estate - Richard Paddock/Adri Baker 3 512/835-4455 [email protected]

NW Austin Office Survey - Pg 8 of 11 4/28/2013 Northwest & Far Northwest Austin Competitive Office Market Survey First Quarter 2013 (As of April 1, 2013)

Building Name Bldg Year Square Feet % Occup Core Lease Asking Escal- Est. 2013 T.I. Parking Address Class or Built/ Total Direct Sublease (Excluding Factor Term Rental ation Oper. Allowance Type, Ratio, Owner/Contact Type # Flrs NRA Available Available Sublse) (%) (Mo.s) Rate(s) Provision Exp. PSF Charges Riata Corporate Park Bldg 7 2000 4.00/1000 12357-C Riata Trace Parkway A 92,719 0 0 100% 16.00% 36-120 $18.50 Net $10.50 Neg. Surface HPI Real Estate - Richard Paddock/Adri Baker 3 512/835-4455 [email protected] Riata Corporate Park Bldg 8 1999 4.00/1000 12365-B Riata Trace Parkway A 93,718 0 14,610 100% 16.00% 36-120 $18.50 Net $10.50 Neg. Surface HPI Real Estate - Richard Paddock/Adri Baker 3 512/835-4455 [email protected] Riata Corporate Park Bldg 9 1999 4.00/1000 12365-A Riata Trace Parkway A 92,973 0 0 100% 16.00% 36-120 $18.50 Net $10.50 Neg. Surface HPI Real Estate - Richard Paddock/Adri Baker 3 512/835-4455 [email protected] Riata Crossing Bldg 1 1999 12545 Riata Vista Circle B 81,775 0 0 100% 16.00% 36-120 $17.50 + J&E $5.91 Neg. 5/1000 HPI Real Estate - Richard Paddock/Adri Baker 2 Surface 512/835-4455 [email protected] Riata Crossing Bldg 2 1999 12545 Riata Vista Circle B 114,906 0 0 100% 16.00% 36-120 $17.50 + J&E $5.91 Neg. 5/1000 HPI Real Estate - Richard Paddock/Adri Baker 2 Surface 512/835-4455 [email protected] Riata Crossing Bldg 3 1999 12545 Riata Vista Circle B 81,229 0 0 100% 16.00% 36-120 $17.50 + J&E $5.91 Neg. 5/1000 HPI Real Estate - Richard Paddock/Adri Baker 2 Surface 512/835-4455 [email protected] Riata Crossing Bdg 4 2008 12565 Riata Vista Circle B 79,465 0 0 100% 16.00% 36-120 $17.50 + J&E $5.91 Neg. 5/1000 HPI Real Estate - Richard Paddock/Adri Baker 2 Surface 512/835-4455 [email protected] Riata Crossing Bldg 5 1999 12554 Riata Vista Circle B 50,494 50,494 0 0% 16.00% 36-120 $17.75 Net $10.65 Neg. 5/1000 HPI Real Estate - Richard Paddock/Adri Baker 2 Surface 512/835-4455 [email protected] River Place Corp Park Bldg 1 2000 6500 River Place Blvd. A 76,143 25,288 0 67% 16.90% 36-120 $18.00 Net $11.59 Neg. 4/1000 CBRE - Casey Ford/Troy Holme 3 Covered 512/499-4900 [email protected] River Place Corp Park Bldg 2 2000 6500 River Place Blvd. A 112,782 39,396 0 65% 16.90% 36-120 $18.00 Net $11.33 Neg. 4/1000 CBRE - Casey Ford/Troy Holme 3 Covered 512/499-4900 [email protected] River Place Corp Park Bldg 3 2001 6500 River Place Blvd. A 114,903 89,236 0 22% 16.90% 36-120 $18.00 Net $11.45 Neg. 4/1000 CBRE - Casey Ford/Troy Holme 4 Covered 512/499-4900 [email protected] River Place Corp Park Bldg 4 2001 6500 River Place Blvd. A 86,863 6,406 0 93% 16.90% 36-120 $18.00 Net $11.18 Neg. 4/1000 CBRE - Casey Ford/Troy Holme 3 Covered 512/499-4900 [email protected] River Place Corp Park Bldg 5 2002 6500 River Place Blvd. A 66,951 15,628 0 77% 16.90% 36-120 $18.00 Net $11.85 Neg. 4/1000 CBRE - Casey Ford/Troy Holme 3 Covered 512/499-4900 [email protected]

NW Austin Office Survey - Pg 9 of 11 4/28/2013 Northwest & Far Northwest Austin Competitive Office Market Survey First Quarter 2013 (As of April 1, 2013)

Building Name Bldg Year Square Feet % Occup Core Lease Asking Escal- Est. 2013 T.I. Parking Address Class or Built/ Total Direct Sublease (Excluding Factor Term Rental ation Oper. Allowance Type, Ratio, Owner/Contact Type # Flrs NRA Available Available Sublse) (%) (Mo.s) Rate(s) Provision Exp. PSF Charges River Place Corp Park Bldg 6 2002 6500 River Place Blvd. A 62,038 7,200 0 88% 16.90% 36-120 $18.00 Net $12.06 Neg. 4/1000 CBRE - Casey Ford/Troy Holme 3 Covered 512/499-4900 [email protected] River Place Corp Park Bldg 7 2002 6500 River Place Blvd. A 66,951 22,216 0 67% 16.90% 36-120 $18.00 Net $11.61 Neg. 4/1000 CBRE - Casey Ford/Troy Holme 3 Covered 512/499-4900 [email protected] Shepherd Mountain Plaza 1986 3.30/1000 6034 W. Courtyard Drive A 100,937 2,032 0 98% 17.96% 36-60 $27.00 Gross/BY $10.67 Neg. 75% Covered Intco Properties - Mary Ann Loga 3 512/794-8663 [email protected] Stone Cliff 2002 4.00/1000 7801 Capital Of Texas Hwy., N. A 66,027 19,013 0 71% 17.00% 36-120 $26.50 Gross/BY $10.35 Neg. Covered/Surface Kucera Co. - Doug Rauls/Jeff Henley 3 512/346-0025 [email protected] Stonebridge Plaza I 1999 4.22/1000 9606 Mopac Expressway, N. A 193,200 3,816 12,322 98% 16.00% 60-120 $23.00 Net $13.41 Neg. Covered Stream Realty -Brad Philp/Edvin Beasley 9 512/481-3000 [email protected] Stonebridge Plaza II 2001 4.00/1000 9600 Mopac Expressway, N. A 192,864 26,438 0 86% 16.1% 60-120 $23.00 Net $13.07 Neg. Covered Stream Realty -Brad Philp/Edvin Beasley 9 512/481-3000 [email protected] StoneCreek Park 2000 4.5/1000 3300 Duval Road A 77,185 0 0 100% 15.00% 36-120 $17.50 Net $10.85 Neg. Covered/Surface Transwestern - Greg Johnson 2 512/328-5600 [email protected] Stone Creek II 1999 4.5/1000 11921 N. Mopac A 159,492 10,560 0 93% 17.00% 36-120 $21.00 Net $11.38 Neg. Covered Kucera Co. - David Stojanik 4 512/346-0025 [email protected] Stratum Exec Center - A 1986 4.00/1000 11044 Research Blvd. A 61,000 5,490 0 91% 16.70% 36-60 $26.00 Gross/BY $11.85 Neg. Covered Stream Realty - Brad Philp 5 512/481-3008 [email protected] Stratum Exec Center - B 1986 4.00/1000 11044 Research Blvd. A 61,000 16,594 0 73% 16.70% 36-60 $26.00 Gross/BY $11.85 Neg. Covered Stream Realty - Brad Philp 5 512/481-3000 [email protected] Stratum Exec Center - C 1986 4.00/1000 11044 Research Blvd. A 61,000 4,406 0 93% 16.70% 36-60 $26.00 Gross/BY $11.85 Neg. Covered Stream Realty - Brad Philp 5 512/481-3000 [email protected] Stratum Exec Center - D 1986 4.00/1000 11044 Research Blvd. A 61,000 0 0 100% 16.70% 36-60 $26.00 Gross/BY $11.85 Neg. Covered Stream Realty - Brad Philp 5 512/481-3008 [email protected] Synergy I & II 1995 3.3/1000 11940 Jollyville B 60,000 7,703 0 86% 16.0% 12-120 $20.00 Gross $10.50 Neg. Surface Kucera companies - Jay Theisen/Max Appling 3 512-346-0025 [email protected]

NW Austin Office Survey - Pg 10 of 11 4/28/2013 Northwest & Far Northwest Austin Competitive Office Market Survey First Quarter 2013 (As of April 1, 2013)

Building Name Bldg Year Square Feet % Occup Core Lease Asking Escal- Est. 2013 T.I. Parking Address Class or Built/ Total Direct Sublease (Excluding Factor Term Rental ation Oper. Allowance Type, Ratio, Owner/Contact Type # Flrs NRA Available Available Sublse) (%) (Mo.s) Rate(s) Provision Exp. PSF Charges Tower of the Hills/Tower Point 1986 4.2/1000 13809 Research Blvd. A 175,802 28,765 0 84% 15.65% 36-60 $11.50 Net $10.61 Neg. Covered/Surface AQUILA Commercial - Ben Tolson/Bethany Perez 10 to $16.75 to $10.83 512/684-3800 [email protected] Travesia Corporate Park 1-3 2008 5.0/1000 3600 Quick Hill Road B 175,950 33,555 0 81% 0% 60-120 $13.00 Net $2.19 + Neg Surface Stream Realty - Will Nicols/Sam Owen 1 E&J 512/481/3000 [email protected] Westpark Office 1-4 1981 3.33/1000 8140 North MoPac Expressway B 97,034 6,943 0 93% 16.0% - 17.0% 36-60 $23.50 Gross/BY $8.46 Neg. Surface Congress Holdings - Joel Sher/Jeff Henley 2 512/478-1005 [email protected] Westech 360 Bldgs 1-4 1986 3.64/1000 8911 Captial of Texas Hwy., N. A 175,529 84,769 0 52% 17.41% 36-120 $18.00 Net $10.62 Neg. Covered Transwestern - Mike Brown/Brandon Lester 3 512/328-5600 [email protected]

Occupancy Including Direct Space Sublease Only TOTALS - THIS QUARTER 13,396,452 1,721,507 105,617 86.4% 87.1% TOTALS FROM LAST QUARTER 13,396,452 2,015,266 67,891 84.4% 85.0% DIFFERENCE 0 (293,759) 37,726 1.9% 2.2%

NW Austin Office Survey - Pg 11 of 11 4/28/2013 Office Buildings Larger Than 30,000 SF - CP / E / FNW / N / NE / NW / RR Submarkets 4/27/2013 Year No. of Total Bldg Direct Sublet % Quoted Parking Submarket Building Name Building Address Class Built Stories RBA (SF) Available SF Available SF Leased Rent Ratio Cedar Park 1890 Ranch 1401 E Medical Pky 2008 B 4 83,393 100 - Cedar Park 500 W Whitestone Blvd 500 W Whitestone Blvd 1999 B 2 30,622 15,311 0 50 $17.00 4.5 Cedar Park Cypress Creek Medical Plaza 351 Cypress Creek Rd 2007 B 2 31,625 100 - Cedar Park LISD Support Services 1900 Cougar Country Dr 2000 B 1 30,000 100 - Cedar Park Parkline 11200 Lakeline Blvd 2008 B 1 90,000 9,405 0 100 $15.00 5 Cedar Park The Crossings at Lakeline Bldg 1 11001 Lakeline Blvd 2008 A 3 114,726 19,994 0 82.57 $16.50 4 Cedar Park The Crossings at Lakeline Bldg 2 11001 Lakeline Blvd 2008 A 3 117,548 13,148 0 88.81 $16.50 4 CEDAR PARK SUBTOTAL: 497,914 57,858 0 88.4% East BAE Systems 6500 Tracor Ln C 1 40,024 100 - East BAE Systems Austin - Building 28 6500 Tracor Ln 1985 B 2 139,250 100 - East Capital Plaza Office Building 5407 IH 35 N 1974 B 4 44,985 5,969 390 86.73 Withheld 4.5 East Central Health 25 Waller St C 5 50,000 100 - East Dell Pediatric Research Institute 1400 Barbara Jordan Blvd 2009 A 3 150,000 100 - East Freescale - South Campus C 3501 Ed Bluestein Blvd B 1 61,244 61,244 0 0 Withheld East Freescale - South Campus D 3501 Ed Bluestein Blvd B 1 167,243 167,243 0 0 Withheld East Freescale - South Campus Q 3501 Ed Bluestein Blvd B 2 40,914 100 - East Pharmaco Office Building 2901 IH_35 N 1982 B 4 37,101 100 - East Plaza 290 6633 Hwy 290 E 1985 C 3 45,981 100 - 3.33 East Region XIII 5701 Springdale Rd 2004 A 3 74,370 100 - 5 East Seton Office Building at Mueller 4700 James Wheat St 2008 B 4 137,896 100 - East Strictly Pediatrics 1301 Barbara Jordan Blvd 2007 B 4 156,000 100 - East Texas Hospital Assoc 6225 E Highway 290 E 1972 C 2 53,740 100 - East Tracor 1 6500 Tracor Ln 1965 B 2 88,836 88,836 0 0 Withheld 2.65 East Twin Towers 1106 Clayton Ln 1974 B 5 190,570 31,160 0 92.87 $17.75 3.7 EAST SUBTOTAL: 1,478,154 354,452 390 76.0% Far Northwest 12800 Angel Side Dr 12800 Angel Side Dr 1997 B 1 31,810 100 - Far Northwest 6801 River Place Blvd 6801 River Place Blvd B 3 57,511 100 - Far Northwest 7700 Parmer A 7700 W Parmer Ln 1999 A 2 250,000 62,000 0 100 $19.50 3.8 Far Northwest 7700 Parmer B 7700 W Parmer Ln 1999 A 3 350,000 340,000 0 64.29 $19.50 Far Northwest 7700 Parmer C 7700 W Parmer Ln 1999 A 3 282,000 50,000 0 82.27 $19.50 Far Northwest 7700 Parmer D 7700 W Parmer Ln 1999 A 3 140,000 66,000 0 52.86 $19.50 4 Far Northwest Amber Oaks A 13640 Briarwick Dr 1999 A 2 78,182 14,572 0 81.36 $17.00 5 Far Northwest Amber Oaks B 13630 Briarwick Dr 1999 B 1 43,022 100 - 5 Far Northwest Amber Oaks C 13620 Briarwick Dr 1999 B 1 43,022 100 - 5 Far Northwest Amber Oaks D 9400 Amberglen Blvd 1999 A 1 63,111 100 - Far Northwest Amber Oaks F 9500 Amberglen Blvd 2000 A 2 80,820 100 - 1 Far Northwest Amber Oaks G 9601 Amberglen Blvd 2001 A 2 101,223 16,645 0 83.56 $17.00 5 Far Northwest Amber Oaks H 9501 Amberglen Blvd 2007 B 2 101,045 26,212 0 74.06 $17.00 5 Far Northwest Amber Oaks I 9401 Amberglen Blvd 2007 B 1 50,233 10,828 0 78.44 $17.00 5 Far Northwest Amber Oaks J 9301 Amberglen Blvd 2001 A 1 50,111 5,765 0 88.5 $17.00 6 Far Northwest Aspen Lake One 13785 Highway 183 2008 A 4 205,071 0 1,500 100 Withheld 4.2 Far Northwest Austin 620 Reserve C 8311 N FM 620 1986 B 2 55,890 100 - Far Northwest Austin 620 Reserve D 8311 N FM 620 1986 B 2 58,016 100 - Far Northwest First Care Office Bldg 12940 Research Blvd 1986 B 3 52,827 100 - 4.2 Far Northwest Four Points Centre 1 11305 Four Points Dr 2008 A 3 96,005 45,627 0 52.47 $17.00 4 Far Northwest Four Points Centre 2 11305 Four Points Dr 2008 A 3 96,055 6,282 0 93.46 $17.00 4 Far Northwest Hunter's Point Center, Bldg A 13091 Pond Springs Rd 1986 C 1 30,984 18,220 0 100 $14.00 Far Northwest Pecan Park 10700 Pecan Park Blvd 2009 A 4 136,245 43,381 0 68.16 $16.50 5

Page 1 of 8 Office Buildings Larger Than 30,000 SF - CP / E / FNW / N / NE / NW / RR Submarkets 4/27/2013 Year No. of Total Bldg Direct Sublet % Quoted Parking Submarket Building Name Building Address Class Built Stories RBA (SF) Available SF Available SF Leased Rent Ratio Far Northwest Pecan Park 10800 Pecan Park Blvd 2009 A 4 136,444 38,177 0 72.02 $17.50 5 Far Northwest S A S Institute 11920 Wilson Parke Ave 1989 B 3 61,944 100 - Far Northwest State Farm 8900 Amberglen Blvd 1994 B 3 462,000 100 - Far Northwest Summit Executive Centre 13706 Research Blvd 1985 B 3 33,300 5,939 0 82.17 $18.71 3.45 Far Northwest Tower of the Hills 13809 Research Blvd 1986 A 10 178,000 34,955 2,021 81.08 $14.66 4 FAR NORTHWEST SUBTOTAL: 3,324,871 784,603 3,521 76.3% North 1010 W 40th St 1010 W 40th St 2008 B 5 40,008 100 - North 10409 Burnet Rd 10409 Burnet Rd C 2 38,700 100 - North 12124 N Interstate 35 12124 N Interstate 35 B 3 68,469 100 - North 12124 N Interstate 35 12124 N Interstate 35 B 2 43,342 100 - North 12200 Renfert Way 12200 Renfert Way 1994 A 3 360,000 3,900 0 98.92 $36.00 North 12500 N Interstate 35 Dr 12500 N Interstate 35 Dr B 2 43,885 100 - North 300 Highland Mall 300 Highland Mall Blvd 1986 B 4 37,167 100 - 3.33 North 3200 Steck Ave 3200 Steck Ave 1981 B 3 32,505 100 - North 3305 Steck Ave 3305 Steck Ave 1994 B 3 33,000 11,000 0 66.67 Withheld 3.79 North 4920 Interstate 35 N 4920 Interstate 35 N 1971 C 2 30,000 100 - 3.33 North 5501 Airport Blvd 5501 Airport Blvd 1960 C 1 93,525 100 - North 5800 Airport Blvd 5800 Airport Blvd 1958 B 1 80,735 100 - 4.97 North 5805-6121 N Lamar Blvd 5805-6121 N Lamar Blvd C 3 290,701 100 - North 7701 N Lamar Blvd 7701 N Lamar Blvd 1971 C 5 54,560 100 - North 8303 Mopac 8303 N MoPac Expy 1987 A 4 246,869 22,310 0 90.96 $17.63 4 North 8500 Shoal Creek Bldg 1 8500 Shoal Creek Blvd 1979 B 2 47,335 12,673 0 100 Withheld North 8500 Shoal Creek Bldg 4 8500 Shoal Creek Blvd 1972 C 2 47,335 17,784 0 64.23 $15.51 North 8610 Shoal Creek Blvd 8610 Shoal Creek Blvd 1973 B 2 34,138 100 - North 8610 Shoal Creek Blvd 8610 Shoal Creek Blvd 1973 B 2 82,817 100 - 4.17 North Airport Center 6415-6505 Airport Blvd 1980 C 1 86,099 100 - 7 North Anderson Square I & II 7950-8000 Anderson Sq 1981 C 1 68,157 4,544 0 93.33 $10.37 4.52 North Atrium Office Centre 8701 MoPac Expy N 1983 B 4 119,858 31,268 0 73.91 $11.50 4 North Baker Center 3908 Avenue B A 1 65,868 100 - North Braker Pointe I 10801 MoPac Expy N 2002 A 3 76,797 19,572 0 85.42 $16.50 4 North Braker Pointe II 10801 MoPac Expy N 2003 A 4 106,543 7,048 7,946 93.38 $19.41 4 North Braker Pointe III (Harcourt) 10801 N MoPac Expy 2001 B 7 195,230 100 - 4.14 North Cedar Bend Professional Center 12309 N MoPac Expy 2012 A 3 70,200 0 3,675 100 $26.00 5 North Centennial Towers 505 E Huntland Dr 1986 B 6 156,293 32,840 0 83.37 $19.00 4 North Chancellor Centre 8627 MoPac Expy N 1985 B 4 46,411 6,628 0 100 Withheld 3.33 North Chase Northcross 7600 Burnet Rd 1984 B 5 82,909 19,696 0 79.04 $23.00 4.3 North Chase Park I 7700 Chevy Chase Dr 1972 B 5 62,890 41,261 0 51.59 $18.75 4 North Chase Park II 7600 Chevy Chase Dr 1970 B 5 65,265 12,173 0 81.35 $18.75 4 North Chase Park III 313 E Anderson Ln 1973 B 3 50,341 30,845 0 74.22 $18.75 4 North Chase Park IV 7715 Chevy Chase Dr 1974 B 2 50,393 100 - 4 North Chase Park V 7745 Chevy Chase Dr 1975 B 3 60,000 10,169 0 83.05 $18.75 5 North Citizens Plaza 400 E Anderson Ln 1973 C 6 78,166 26,600 0 65.97 $17.00 3.33 North Colonnade Office Center 12015 Park Thirty Five Cir 1986 A 5 195,946 0 4,079 100 $13.00 4.17 North Compass Bank Bldg 10711 Burnet Rd 1981 B 3 48,560 23,097 0 52.44 $15.50 3.33 North Domain 3110 Esperanza Crossing 1975 B 1 152,012 100 - 4 North Domain 45 11400 Burnet Rd 1979 B 2 481,050 100 - 3.33 North Domain 5 11501 Domain Dr 1974 B 2 177,843 11,207 8,000 93.7 $21.42 4 North Donley Plaza 2201 Donley Dr 1983 B 3 67,000 100 - 4

Page 2 of 8 Office Buildings Larger Than 30,000 SF - CP / E / FNW / N / NE / NW / RR Submarkets 4/27/2013 Year No. of Total Bldg Direct Sublet % Quoted Parking Submarket Building Name Building Address Class Built Stories RBA (SF) Available SF Available SF Leased Rent Ratio North Enterprise Plaza 13915 Burnet Rd 1986 B 4 45,341 22,299 2,194 55.43 $19.39 3.6 North Exchange Park 7800 Shoal Creek Blvd 1974 B 2 151,395 71,139 0 54.35 $12.00 4.44 North Executive Office Terrace 111 W Anderson Ln 1972 C 1 75,435 11,923 0 87.83 $12.52 4 North Executive Plaza 14205 Burnet Rd 1986 B 6 64,521 27,840 0 56.85 $11.00 3.46 North Frontera Crossing 101 W Louis Henna Blvd 1984 B 4 165,000 36,620 0 77.81 $16.50 6 North Highland Place 5930 Middle Fiskville Rd 1985 B 6 98,520 100 - North Huntland Building 305 E Huntland Dr 1978 B 5 58,806 100 - 5 North IBM Corp 11501 Burnet Rd 1990 B 5 1,145,460 100 - North IBM Tivoli Systems Building 1 11301 Burnet Rd 2002 B 5 200,000 100 - North KVUE 3201 Steck Ave 1982 B 1 35,637 100 - North Lamar Towers 7703 N Lamar Blvd 1972 B 5 55,000 1,731 1,265 96.85 $19.00 3.3 North Medical Oaks Pavilion 1 12201 Renfert Way 2000 B 3 110,000 100 - North Medical Oaks Pavilion 2 12201 Renfert Way 2000 B 3 40,914 100 - North Medical Oaks Pavilion 3 12221 Renfert Way 2011 A 3 110,000 30,000 0 72.73 $23.00 North Midtown Commons Building 1 7020 Easy Wind Dr 2009 B 2 60,322 12,701 0 78.94 $18.00 6 North Midtown Commons Building 2 7010 Easy Wind Dr 2009 B 2 60,322 17,007 0 71.81 $18.00 6 North North Lamar Office Campus 7620 Guadalupe St 1987 B 3 51,277 51,255 0 0.04 $20.00 3.6 North Offices at the Domain Building 1 11401 Century Oaks Ter 2007 A 4 145,073 5,228 0 96.4 $19.50 3.7 North Offices at the Domain Building 2 10910 Domain Dr 2009 A 3 113,509 100 - 3.63 North One Highland Center 314 E Highland Mall Blvd 1971 B 5 68,292 5,918 0 96.45 $14.50 4.76 North Park 35 - TCEQ 12100 Park Thirty Five Cir 1986 B 3 98,668 100 - North Park 35 Tech - Bldg D 12118 N I-35 1986 B 2 75,000 100 - North Park 35 Tech - Bldg E 12118 N I-35 1986 B 3 55,000 100 - North Park Central I 12345 N Lamar Blvd 2008 B 3 114,091 64,137 0 43.78 Withheld 4.65 North Plaza North 12319 Mo-pac Expy 2012 B 3 36,000 7,613 0 78.85 $26.35 North Post Oak Centre North 1 2200 Park Bend Dr 2007 B 4 33,000 100 - 5 North Red Roof Inn 8200 Interstate 35 C 1 48,400 100 - North Reunion Park 8501 MoPac Expy N 1979 B 4 123,280 27,569 0 77.64 $15.50 4 North Shoal Creek West 8712 Shoal Creek Blvd 1985 B 2 51,314 100 - 3.7 North Southwestern Bell 712 Huntland Dr E 1972 C 4 101,048 100 - North St. Francis School 300 Huntland Dr E 1985 B 2 30,263 100 - North Steck Executive Plaza II 8217 Shoal Creek Blvd 1985 B 3 31,591 11,000 10,478 100 $16.61 3.34 North Stonecreek I 11902 Burnet Rd 1984 B 4 76,860 100 - 3.33 North StoneCreek II 11921 MoPac Expy N 2000 A 4 162,959 34,104 0 88.73 $21.00 4.3 North The Centre Business Park A 7801 N Lamar Blvd 1980 B 1 35,541 1,000 0 97.19 $12.60 3.33 North The Centre Business Park D 7801 N Lamar Blvd C 1 40,418 3,000 0 92.58 $11.67 North The Centre Business Park E 7801 N Lamar Blvd C 1 31,537 6,400 0 79.71 $11.00 North The Centre Business Park F 7801 N Lamar Blvd C 1 40,135 4,750 0 88.16 $11.42 North The Continental Building 9101 Burnet Rd 1984 B 2 58,700 9,374 0 84.03 $20.00 3.53 North The Domain Gateway 2900 Esperanza Crossing 2009 A 5 173,962 100 - 4 North The Exchange 10205 N Lamar Blvd 1985 B 3 61,568 6,418 0 89.58 $21.00 3.33 North Travesia Corporate Park Bldg I 3800 Quick Hill Rd 2008 B 1 46,200 100 - 6 North Travesia Corporate Park Bldg II 3800 Quick Hill Rd 2009 A 1 62,250 100 - 6 North Travesia Corporate Park Bldg III 3800 Quick Hill Rd 2009 A 1 67,500 33,555 0 50.29 $14.00 5 North Waterford C 9229 Waterford Centre Blvd 1998 B 1 57,165 100 - 4 North Waterford Centre D 9211 Waterford Center Blvd 1998 B 2 49,656 29,444 0 90.7 $13.50 5 North Webhosting Facility 11400 N Lamar Blvd 2001 B 1 131,350 100 - North Wells Fargo Plaza-North 9800 N Lamar Blvd 1980 B 3 49,198 20,973 0 57.37 $13.50 3.33

Page 3 of 8 Office Buildings Larger Than 30,000 SF - CP / E / FNW / N / NE / NW / RR Submarkets 4/27/2013 Year No. of Total Bldg Direct Sublet % Quoted Parking Submarket Building Name Building Address Class Built Stories RBA (SF) Available SF Available SF Leased Rent Ratio NORTH SUBTOTAL: 9,066,400 897,613 37,637 89.7% Northeast 1200 Anderson Lane East 1200 E Anderson Ln 1982 B 3 76,879 100 - 4.26 Northeast 1212 E Anderson Ln 1212 E Anderson Ln 1981 C 2 54,050 4,800 0 91.12 $12.00 4.4 Northeast 1505 Ferguson Ln 1505 Ferguson Ln 2009 B 1 35,802 100 - Northeast 1520 Rutherford Ln 1520 Rutherford Ln 1985 B 2 31,634 100 - Northeast 1609 Centre Creek Dr 1609 Centre Creek Dr 1982 B 2 50,294 100 - 5 Northeast 8000 Centre Park Dr 8000 Centre Park Dr 1985 B 3 63,659 15,873 0 75.07 $10.50 3.7 Northeast 8100 Cameron A 8100 Cameron Rd 1984 B 2 58,474 58,474 0 0.81 $15.00 4.25 Northeast 8100 Cameron B 8100 Cameron Rd 1984 A 2 40,683 100 - 8 Northeast 817 Howard Bldg A 817 W Howard Ln 1983 C 2 39,337 100 - Northeast 9708 Giles Rd 9708 Giles Rd 1983 C 1 31,752 6,675 0 78.98 $18.00 Northeast A+ Federal Credit Union 6420 Hwy 290 E 1994 B 2 33,120 100 - Northeast American Founders Bldg 6937 IH 35 N 1972 B 5 65,575 100 - 4.02 Northeast Anderson Campus C 1300 E Anderson Ln 1980 C 2 62,784 62,784 0 0 $10.00 3.2 Northeast Centre Creek Plaza 1812 Centre Creek Dr 1986 B 3 57,796 20,893 0 63.85 $18.00 3.89 Northeast Cross Park Center 8317 Cross Park Dr 1985 B 4 91,684 100 - 8 Northeast Dell Austin Parmer Campus PS2 701 E Parmer Ln B 4 200,000 100 - Northeast Dell Austin Parmer Campus PS4 701 E Parmer Ln B 2 107,383 100 - Northeast Exchange Bldg 8407 Wall St 1985 B 4 109,315 100 - 3.57 Northeast Farm Credit Bank Bldg 6210 Hwy 290 E 1984 B 4 157,000 100 - 2.39 Northeast Goodwill Bldg 1015 Norwood Park Blvd 1985 C 2 91,000 100 - Northeast Headway I 1616 Headway Cir 1982 C 2 31,000 100 - 5 Northeast ITT Technical Institute Building 6330 Hwy 290 E 1987 B 3 89,455 1,430 0 98.4 $17.50 6.45 Northeast La Costa Centre 6300 La Calma Dr 1982 A 5 87,900 6,548 0 92.55 $16.00 4.03 Northeast La Costa Green 1033 La Posada Dr 1983 B 3 76,115 541 0 99.29 $17.00 3.9 Northeast Minco Technology Laboratories 1805 Rutherford Ln 1980 C 2 31,164 0 8,000 100 $14.00 Northeast Natl Western Life 850 Anderson Ln E 1975 C 4 72,720 100 - Northeast Northview Business Center 9001 I-35 N 1971 B 1 254,705 100,009 0 71.66 $18.50 7 Northeast One Cameron Place I 7901 Cameron Rd 1986 C 2 36,418 100 - 3.27 Northeast One Cameron Place II 7901 Cameron Rd 1986 B 3 48,500 54,554 1,291 20.85 $13.30 8.72 Northeast One Cameron Place III 7901 Cameron Rd 1986 B 3 58,500 58,500 194 56.72 $12.00 4 Northeast One La Costa 1016 La Posada Dr 1981 A 2 60,798 10,935 0 84.04 $17.00 3.65 Northeast Parmer @ Tech Ridge 717 E Parmer Ln 2000 B 4 320,596 100 - 5.53 Northeast Promontory Point D 2632 Ridgepoint Dr 1984 C 1 38,241 38,241 0 0 $10.20 4.37 Northeast Promontory Point G 2433 Ridgepoint Dr 1985 C 2 61,041 100 - Northeast Rutherford Plaza 1821 Rutherford Ln 1983 C 3 108,122 100 - Northeast Sungard Building 8025 N Interstate 35 1995 B 1 62,237 100 - 4.82 Northeast Texas Real Estate Commission 1101 Camino La Costa 1981 B 2 50,644 25,322 0 50 $16.50 3.7 Northeast Yager Technology Center A 1006 Yager Ln E 1985 C 1 40,650 1,400 0 96.56 $12.00 6.72 NORTHEAST SUBTOTAL: 2,987,027 466,979 9,485 84.0% Northwest 11950 Jollyville Rd 11950 Jollyville Rd 1976 B 1 36,437 100 - 3.77 Northwest 3305 Northland Dr 3305 Northland Dr 1981 B 5 58,650 3,571 0 93.91 $21.50 4.44 Northwest 5300 Riata Park Ct 5300 Riata Park Ct 2000 B 1 232,114 100 - Northwest 5806 Mesa Dr 5806 Mesa Dr 1985 B 3 69,477 5,872 0 100 $24.00 Northwest 5900-2 Shepherd Mountain Cv 5900-2 Shepherd Mountain Cv 2003 B 2 44,808 100 - 3.5 Northwest 9130 Jollyville 9130 Jollyville Rd 1985 B 3 61,949 100 - 3.93 Northwest 9500 Arboretum Blvd 9500 Arboretum Blvd 1987 A 6 182,311 3,807 0 97.91 $20.00 4 Northwest Arboretum Atrium 9737 Great Hills Trl 1984 A 3 95,280 4,240 0 100 $18.00 3.67

Page 4 of 8 Office Buildings Larger Than 30,000 SF - CP / E / FNW / N / NE / NW / RR Submarkets 4/27/2013 Year No. of Total Bldg Direct Sublet % Quoted Parking Submarket Building Name Building Address Class Built Stories RBA (SF) Available SF Available SF Leased Rent Ratio Northwest Arboretum Plaza I 9442 Capital Of Texas Hwy N 1984 A 9 127,890 12,940 300 95.27 $21.00 4.22 Northwest Arboretum Plaza II 9442 Capital Of Texas Hwy N 1985 A 6 103,032 100 - 4 Northwest Arboretum Point 9505 Arboretum Blvd N 1985 A 9 150,039 100 - 4.4 Northwest Austin Oaks-Benbrook 3737 Executive Center Dr 1981 B 2 31,329 1,287 0 95.89 $15.00 4.08 Northwest Austin Oaks-Bridgeport 3701 Executive Center Dr 1982 B 2 31,834 1,096 0 96.56 $15.00 4.08 Northwest Austin Oaks-Colorado 3636 Executive Center Dr 1979 B 3 38,057 756 0 98.01 $15.00 4.08 Northwest Austin Oaks-Cross 7718 Wood Hollow Dr 1987 B 3 43,742 1,990 0 95.45 $15.00 4.08 Northwest Austin Oaks-Hubbard 3429 Executive Center Dr 1973 B 2 30,699 100 - 4.08 Northwest Austin Oaks-Livingston 3420 Executive Center Dr 1985 B 4 51,652 7,757 0 84.98 $15.00 4.08 Northwest Austin Oaks-Meredith 3721 Executive Center Dr 1982 B 2 42,768 2,955 0 96.61 $15.00 4.08 Northwest Austin Oaks-Proctor 3724 Executive Center Dr 1980 B 3 39,449 3,064 0 100 $15.00 4.08 Northwest Austin Oaks-Travis 3520 Executive Center Dr 1985 B 4 50,558 6,680 0 100 $15.00 4.08 Northwest Austin Regional Clin 6835 Austin Center Blvd 1981 B 2 45,541 100 - 2.31 Northwest Austin Surgical Plaza 6818 Austin Center Blvd 1994 B 2 78,789 100 - 5.13 Northwest Balcones Centre 11149 Research Blvd 1985 B 4 75,422 6,643 0 98.32 $22.00 3.5 Northwest Balcones North 8920 Business Park Dr 1980 B 3 53,984 3,480 2,805 93.55 $20.05 3.33 Northwest Bank Of America Bldg 3301 Northland Dr 1975 B 5 52,910 3,522 0 94.82 $21.50 4.44 Northwest Briarcroft Building 12710 Research Blvd 1984 B 3 63,825 4,734 0 92.58 $20.00 2.72 Northwest Bridgepoint Plaza I 5914 Courtyard Dr W 1986 A 5 104,575 100 - 3.3 Northwest Bridgepoint Plaza II 5918 Courtyard Dr W 1992 A 4 72,640 23,476 0 75.7 $19.25 3.3 Northwest Bridgepoint Square 1 6300 Bridgepoint Pky 1986 A 5 84,765 17,117 0 85.84 $18.50 3.55 Northwest Bridgepoint Square 2 6300 Bridgepoint Pky 1997 A 5 91,844 1,589 0 98.27 $18.50 4.17 Northwest Bridgepoint Square 3 6300 Bridgepoint Pky 1996 A 5 78,741 15,558 0 100 Withheld 1.28 Northwest Bridgepoint Square 4 6200 Bridgepoint Pky 1996 B 5 109,175 100 - 4.17 Northwest Bridgepoint Square 5 6011 W Courtyard Dr 1997 A 4 75,131 4,103 0 94.54 $12.00 3.33 Northwest Canyon Hills Office Center 11211 Taylor Draper Ln 1998 B 3 68,533 16,063 8,303 76.56 $20.15 3 Northwest Capital of Texas Plaza-Austin 9009 Mountain Ridge Dr 1986 B 3 38,741 9,229 0 76.18 $23.25 3.51 Northwest Capital of Texas Plaza-Houston 9015 Mountain Ridge Dr 1986 B 3 34,432 1,822 0 94.71 $13.00 3.46 Northwest Colina West 8834 Capital Of Texas Hwy N 1985 A 3 69,299 15,845 0 85 $15.75 3.33 Northwest Courtyard Atrium 5910 Courtyard Dr W 1982 B 3 32,426 7,347 0 93.47 $22.50 3.33 Northwest Echelon I 9430 Research Blvd 1983 B 4 63,299 62,192 0 1.75 $18.75 3.33 Northwest Echelon II 9430 Research Blvd 1984 B 3 36,924 5,804 0 84.28 $23.25 3.33 Northwest Echelon III 9420 Research Blvd 1982 B 4 73,260 6,498 0 96.09 $23.50 3.33 Northwest Echelon IV 9430 Research Blvd 1982 B 4 68,942 17,825 18,950 100 $20.24 3.33 Northwest Far West Medical Tower 6811 Austin Center Blvd 2009 B 5 46,970 100 - 9.71 Northwest Far West Plaza Two 3508 Far West Blvd 1984 B 3 48,080 100 - 4.1 Northwest Flextronics Bldg G 12501 Research Blvd C 2 294,856 100 - Northwest Flextronics Bldg H 12501 Research Blvd C 2 46,620 100 - Northwest Flextronics Bldgs A-F, K, M-O 12455 Research Blvd C 2 520,635 100 - Northwest Flextronics Bldgs P, Q, R, S 12455 Research Blvd C 2 261,612 100 - Northwest Gateway Center 5929 Balcones Dr 1981 B 3 30,786 2,065 0 93.29 $22.00 3.33 Northwest Great Hills Corporate Center I 9020 Capital Of Texas Hwy N 1985 A 3 59,228 4,918 0 91.7 Withheld 3.6 Northwest Great Hills Corporate Center II 9020 Capital Of Texas Hwy N 1985 A 3 60,429 21,097 0 84.32 $25.00 3.57 Northwest Great Hills Corporate Center III 9050 Capital Of Texas Hwy N 1986 A 3 56,422 25,324 0 55.12 $25.00 3.57 Northwest Great Hills Plaza 9600 Great Hills Trl 1984 A 3 135,333 30,322 5,000 95.47 $17.50 3.33 Northwest Greystone II 7320 MoPac Expy N 1981 B 4 47,318 9,123 0 95.49 $23.50 3.36 Northwest Greystone Plaza 7200 MoPac Expy N 1985 A 4 78,248 4,918 0 93.71 $27.00 3.6 Northwest Heritage Plaza 7800 MoPac Expy N 1986 A 3 74,735 7,260 0 90.29 $27.00 3.33

Page 5 of 8 Office Buildings Larger Than 30,000 SF - CP / E / FNW / N / NE / NW / RR Submarkets 4/27/2013 Year No. of Total Bldg Direct Sublet % Quoted Parking Submarket Building Name Building Address Class Built Stories RBA (SF) Available SF Available SF Leased Rent Ratio Northwest HighFLEX Technology Center I 12708 Riata Vista Cir 2000 A 1 70,406 16,472 0 76.6 $14.00 Northwest Kaleido I 9390 Research Blvd 1984 B 4 33,174 6,428 0 88.67 $22.50 3.33 Northwest Kaleido II 9390 Research Blvd 1984 B 4 39,974 8,652 0 95.02 $22.50 3.33 Northwest Kingstones Bldg 11675 Jollyville Rd 1985 B 3 30,041 2,775 0 90.76 $19.75 3.26 Northwest Ladera Bend One 7300 FM 2222 2008 B 2 57,815 100 - 4 Northwest Ladera Bend Three 7300 FM 2222 2008 B 2 57,815 100 - 4 Northwest Ladera Bend Two 7300 FM 2222 2008 B 2 45,533 100 - 4 Northwest Lakeview Plaza 4516 Seton Center Pky 1998 A 3 120,956 19,916 0 85.16 $14.00 4.18 Northwest Lakewood Center I 6801 Capital Of Texas Hwy N 1999 B 2 46,562 100 - 4 Northwest Lakewood Center II 6801 Capital Of Texas Hwy N 1999 B 2 46,344 7,562 0 83.68 $17.00 4 Northwest Lakewood On The Park A 7600 Capital Of Texas Hwy N 1998 B 2 31,002 100 - 3.33 Northwest Lakewood On The Park B 7600 Capital Of Texas Hwy N 1997 B 3 102,056 15,819 4,558 84.5 $14.83 1.25 Northwest Lakewood On The Park C 7600 Capital Of Texas Hwy N 1997 B 3 78,596 1,819 0 97.69 $15.50 3.95 Northwest McNeil Research Park B 12675 Research Blvd 1970 B 1 32,700 100 - 4.35 Northwest Millennium Bldg 6504 Bridgepoint Pky 1985 A 5 136,000 5,045 0 96.29 $18.50 3.5 Northwest National Instruments - A 11500 MoPac Expy N 2001 A 5 232,000 100 - Northwest National Instruments - B 11500 MoPac Expy N 2001 B 2 140,000 100 - Northwest National Instruments - C 11500 MoPac Expy N 2001 A 8 380,000 100 - Northwest Northland Office Bldg 3307 Northland Dr 1983 B 5 98,888 2,751 0 98.19 $22.00 4.02 Northwest Northpoint Center I 6836 Austin Center Blvd 1985 A 3 76,794 2,443 0 96.82 $16.00 3.33 Northwest Northpoint Center II 6850 Austin Center Blvd 1985 B 3 74,322 1,842 0 97.52 $14.50 3.33 Northwest Oak Creek Plaza 3107 Oak Creek Dr 2009 A 2 50,000 6,647 0 86.71 $18.00 4 Northwest Oakpointe Office Bldg 9111 Jollyville Rd 1985 B 2 66,815 5,813 660 91.3 $21.00 Northwest One Far West Plaza 3410 Far West Blvd 1983 B 3 70,642 0 2,500 100 $23.44 3.57 Northwest One Steck Plaza 3921-3933 Steck Ave 1980 B 1 42,833 100 - 4 Northwest Park Centre - Building I 8601 Ranch Road 2222 2000 B 4 92,252 18,608 0 79.83 $16.50 4 Northwest Park Centre - Building II 8601 Ranch Road 2222 1999 B 2 34,958 100 - 4 Northwest Park Centre - Building III 8601 Ranch Road 2222 2000 B 4 78,371 23,724 0 69.73 $16.50 3.83 Northwest Park North 1 8200 MoPac Expy N 1981 B 3 66,784 10,147 0 84.81 $14.50 3.5 Northwest Park North 2 8240 MoPac Expy 1981 B 3 66,784 6,439 0 90.36 $14.50 3.5 Northwest Parkcrest Center Bldg B 5508 Parkcrest Dr 1985 B 3 42,719 100 - 3.2 Northwest Parmer @ Mopac Office Centre 3600 W Parmer Ln 2000 B 2 55,355 8,470 0 84.7 $22.00 5.07 Northwest Parmer Business Park 7 5300 Riata Park Ct 1999 B 1 43,000 100 - 5 Northwest Parmer Business Park 8 5300 Riata Park Ct 1999 B 1 53,387 100 - 5 Northwest Parmer Business Park 9 5300 Riata Park Ct 1999 B 1 52,224 100 - 5 Northwest Parmer Business Park E 5301 Riata Park Ct 2001 B 1 42,537 100 - 5 Northwest Parmer Business Park F 5301 Riata Park Ct 2001 B 1 36,435 0 36,435 100 $18.00 5 Northwest Plaza 7000 7000 MoPac Expy N 1999 A 4 155,076 2,275 500 98.64 $21.20 4 Northwest Presidio 6907 Capital Of Texas Hwy N 1984 B 2 60,970 100 - 3.33 Northwest Prominent Pointe I 8310 N Capital Of Texas Hwy 1986 A 4 151,092 21,253 1,900 91.62 $19.51 3.45 Northwest Prominent Pointe II 8310 N Capital of Texas Hwy 2008 A 3 105,830 100 - 4 Northwest Prudential Texas Realty Bldg 3303 Northland Dr 1979 B 3 34,500 2,913 0 91.56 $21.50 4.44 Northwest Quarry Lake Business Center 4515 Seton Center Pky 1997 A 3 117,200 8,305 0 92.91 $20.00 5.24 Northwest Quarry Lake III 4700 Seton Center Park 2001 B 2 42,700 100 - 5 Northwest Quarry Oaks Atrium Bldg A 10900 S Stonelake Blvd 1998 A 3 168,000 89,712 0 100 $22.00 5.5 Northwest Quarry Oaks Atrium Bldg II 10900 Stonelake Blvd 2008 A 3 125,000 6,000 0 95.2 $22.00 4 Northwest Research Park Number Five 12515 Research Blvd 2001 A 3 113,302 39,237 0 65.37 $16.50 4 Northwest Research Park Place, Building 7 12515 Research Blvd 2007 A 4 125,701 19,824 0 84.23 $17.00 4.14

Page 6 of 8 Office Buildings Larger Than 30,000 SF - CP / E / FNW / N / NE / NW / RR Submarkets 4/27/2013 Year No. of Total Bldg Direct Sublet % Quoted Parking Submarket Building Name Building Address Class Built Stories RBA (SF) Available SF Available SF Leased Rent Ratio Northwest Research Park Place, Building 8 12515 Research Blvd 2007 A 4 135,000 105,067 0 22.17 $17.00 4.14 Northwest Research Park Plaza Bldg I 12401 Research Blvd 1999 A 4 136,076 32,013 0 76.47 $19.50 3.7 Northwest Research Park Plaza Bldg II 12401 Research Blvd 1999 A 4 135,813 100 - 3.7 Northwest Research Park Plaza Bldg III 12301 Research Blvd 2001 A 4 176,883 100 - 4.88 Northwest Research Park Plaza Bldg IV 12301 Research Blvd 2001 A 4 184,159 7,443 0 95.96 $21.00 4.88 Northwest Reserve at Bull Creek A 7501 Capital Of Texas Hwy N 1998 B 2 43,782 11,179 0 74.47 $14.50 3.82 Northwest Reserve at Bull Creek B 7501 Capital Of Texas Hwy N 1999 B 2 43,713 100 - 3.82 Northwest Reserve at Bull Creek C 7501 Capital Of Texas Hwy N 2000 B 2 43,959 9,146 0 79.19 $14.50 3.82 Northwest Riata Corporate Park 2 12301-B Riata Trace 1999 A 3 61,675 9,970 0 100 $18.50 4 Northwest Riata Corporate Park 3 12331-A Riata Trace 1999 A 3 63,849 59,220 0 21.53 $18.50 4 Northwest Riata Corporate Park 4 12331-B Riata Trace 1999 A 3 100,827 100 - 4 Northwest Riata Corporate Park 5 12357-A Riata Trace Pky 1999 A 3 91,500 30,926 0 66.2 $18.50 5 Northwest Riata Corporate Park 6 12357-B Riata Trace Pky 2000 A 3 93,835 100 - 4 Northwest Riata Corporate Park 7 12357-C Riata Trace Pky 2000 A 3 92,719 100 - 4 Northwest Riata Corporate Park 8 12365-B Riata Trace 1998 A 3 93,717 100 - 5 Northwest Riata Corporate Park 9 12365-A Riata Trace 1998 A 3 91,541 100 - 4 Northwest Riata Crossing 1 12535 Riata Vista Cir 1998 A 2 82,144 100 - 5 Northwest Riata Crossing 2 12545 Riata Vista Cir 1998 A 2 110,522 100 - 5 Northwest Riata Crossing 3 12555 Riata Vista Cir 1998 A 2 81,688 100 - 5 Northwest Riata Crossing 4 12565 Riata Vista Cir 2008 B 2 80,000 100 - 5 Northwest Riata Crossing 5 12554 Riata Vista Cir 2000 A 2 50,494 50,494 0 0 $17.75 5 Northwest Riata Gateway 12007 Research Blvd 2006 A 3 148,000 7,621 5,489 100 $17.12 3.4 Northwest River Place Corporate Park I 6500 River Place Blvd 2000 A 4 69,329 25,288 0 63.52 $18.00 4 Northwest River Place Corporate Park II 6500 River Place Blvd 1999 A 4 80,002 32,496 0 59.38 $18.00 4 Northwest River Place Corporate Park III 6500 River Place Blvd 2001 A 4 113,528 89,236 0 21.4 $18.00 3.97 Northwest River Place Corporate Park IV 6500 River Place Blvd 2001 A 3 86,863 6,344 0 92.7 $18.00 3.97 Northwest River Place Corporate Park V 6500 River Place Blvd 2002 A 3 68,788 15,628 0 77.28 $18.00 3.97 Northwest River Place Corporate Park VI 6500 River Place Blvd 2002 A 3 62,038 9,518 0 100 $18.00 3.97 Northwest River Place Corporate Park VII 6500 River Place Blvd 2002 A 3 67,687 10,426 0 84.6 $18.00 3.97 Northwest Seton Northwest Health Plaza 11111 Research Blvd 1987 B 4 103,750 8,290 0 92.01 $23.50 1.93 Northwest Shepherd Mountain Plaza 6034 Courtyard Dr W 1985 A 3 100,937 2,032 0 97.99 $27.00 3.33 Northwest Spicewood Business Center 4412 Spicewood Springs Rd 1982 B 2 57,233 9,050 0 84.19 $16.28 0.8 Northwest Spicewood Center- Bldg C 8108 Mesa Dr 1978 B 2 31,745 7,250 0 77.16 $15.86 3 Northwest Spicewood Forest 4131 Spicewood Springs Rd 1986 B 2 43,384 715 0 0 $20.14 3.33 Northwest Stonebridge Plaza I 9606 N MoPac Expy 1999 A 9 193,200 12,486 0 94.87 $23.00 4.22 Northwest Stonebridge Plaza II 9600 N MoPac Expy 2001 A 9 192,864 4,082 0 97.88 $23.00 4.22 Northwest StoneCliff 7801 Capital Of Texas Hwy N 2002 A 3 66,027 35,957 0 71.2 $26.50 3.71 Northwest StoneCreek Park 3300 Duval Rd 2000 A 2 77,185 100 - 4.5 Northwest Stratum Executive Center Bldg A 11044 Research Blvd 1986 A 5 61,943 13,144 0 91.14 $26.00 4 Northwest Stratum Executive Center Bldg B 11044 Research Blvd 1986 A 5 61,901 16,594 0 73.19 $26.00 4 Northwest Stratum Executive Center Bldg C 11044 Research Blvd 1987 A 5 61,497 4,406 0 92.84 $26.00 4 Northwest Stratum Executive Center Bldg D 11044 Research Blvd 1986 A 5 63,750 100 - 4 Northwest Tech Center 2 12515-2 Research Blvd 2000 B 2 58,500 22,295 0 61.89 $14.00 Northwest The Avallon Bldg I 10415 Morado Cir 1986 A 3 58,143 21,700 0 97.08 $17.75 4 Northwest The Avallon Bldg II 10415 Morado Cir 1986 A 3 32,910 8,786 0 73.3 $17.75 4 Northwest The Avallon Bldg III 10415 Morado Cir 1986 A 3 32,878 16,525 0 49.74 $17.75 4 Northwest The Avallon Bldg IV 10814 Jollyville Rd 2001 A 3 86,947 14,574 0 83.24 $17.75 4 Northwest The Avallon Bldg V 10431 Morado Cir 1997 A 3 107,002 107,002 0 100 $18.50 4

Page 7 of 8 Office Buildings Larger Than 30,000 SF - CP / E / FNW / N / NE / NW / RR Submarkets 4/27/2013 Year No. of Total Bldg Direct Sublet % Quoted Parking Submarket Building Name Building Address Class Built Stories RBA (SF) Available SF Available SF Leased Rent Ratio Northwest The Bluffs 5900-1 Shepherd Mountain Cv 2001 B 2 33,364 100 - 1.59 Northwest The Citadel 6805 Capital Of Texas Hwy N 1993 B 3 70,726 16,833 0 76.2 $13.75 4.17 Northwest The Park 8300 N MoPac Expy 1999 A 3 93,312 23,253 0 75.08 $18.50 4.5 Northwest West Pickle Research 3925 W Braker Ln 1985 B 4 198,461 100 - Northwest Westech 360 Bldg I 8911 N Capital Of Texas Hwy 1986 B 3 44,676 41,949 0 6.1 $17.50 3.6 Northwest Westech 360 Bldg II 8911 N Capital Of Texas Hwy 1986 B 3 48,000 20,201 0 64.58 $17.50 2.81 Northwest Westech 360 Bldg III 8911 N Capital Of Texas Hwy 1986 B 3 44,736 9,535 0 78.69 $17.50 3.6 Northwest Westech 360 Bldg IV 8911 N Capital Of Texas Hwy 1986 B 3 44,394 13,033 0 70.64 $17.50 3.6 Northwest Wind River Office Park 11615 Angus Rd 1986 B 2 52,400 8,522 0 83.74 $20.68 3.33 NORTHWEST SUBTOTAL: 13,593,986 1,695,009 87,400 86.9% Round Rock 301 Sundance Parkway at La Frontera 301 Sundance Pky 2001 A 3 195,721 100 - 4.65 Round Rock 4112 Links Ln 4112 Links Ln 2009 B 2 39,009 0 6,078 100 $21.30 Round Rock 425 University Blvd 425 University Blvd 2009 A 5 135,000 28,154 0 79.15 $23.00 5 Round Rock 7200 Wyoming Springs Rd 7200 Wyoming Springs Rd 2000 B 1 63,029 6,137 0 90.26 $27.00 Round Rock Chase Bank Round Rock 1111 N Interstate 35 1980 B 2 30,767 7,530 0 75.53 $17.44 3.33 Round Rock Crystal Park Plaza 101 E Old Settlers Blvd 1998 B 2 58,145 23,999 0 58.73 $14.00 4.38 Round Rock Dell 1 1 Dell Way 1996 A 2 350,000 100 - Round Rock Dell 2 2 Dell Way 1996 A 3 100,000 100 - Round Rock Dell 3 3 Dell Way 1999 A 2 64,000 100 - Round Rock Dell 5 5 Dell Way 1999 A 3 360,000 100 - Round Rock Dell 7 7 Dell Way 1999 A 3 426,600 100 - Round Rock Dell 8 8 Dell Way 1999 A 3 194,400 100 - Round Rock DuPont Photomasks 131 Old Settlers Blvd E 1997 B 2 53,000 100 - Round Rock Former Round Rock Police HQ 615 E Palm Valley Blvd 1986 C 2 46,754 100 - Round Rock Frontera Vista I 1100 Louis Henna Blvd 2008 A 5 133,937 100 - 4 Round Rock Frontera Vista II 1100 Louis Henna Blvd 2008 A 5 133,937 100 - Round Rock HCFD Round Rock 2410 Round Rock 1998 B 2 34,797 100 - Round Rock Oak Valley Medical Center 16030 Park Valley Dr 2012 B 2 33,136 6,100 0 81.59 $21.00 5 Round Rock Oakwood Medical Plaza 511 Oakwood Blvd 1989 B 3 35,120 9,200 0 73.8 $23.50 Round Rock Old Town Square 1 1 Chisholm Trail Rd 1987 B 4 107,000 18,911 3,993 82.33 $13.22 4.1 Round Rock Round Rock Physicians' Plaza 2300 Round Rock Ave 1983 C 2 30,000 100 - Round Rock Round Rock Professional Building 2000 Mays St S 1984 B 3 31,374 9,640 0 73.4 $17.00 5.9 Round Rock Sears Teleserv 1300 Louis Henna Blvd 1998 B 1 138,400 100 - Round Rock Spectrum Crystal Park 2300 Greenhill Dr 2007 C 2 80,712 100 - Round Rock The Summit At La Frontera 810 Hester's Crossing 2001 A 2 87,000 2,121 1,816 97.56 $18.31 4.5 Round Rock Toppan 400 Texas Ave 1987 C 2 31,185 100 - Round Rock Williamson Medical Plaza I 301 Seton Pky 2008 A 4 120,000 23,288 0 80.59 $22.45 5.3 ROUND ROCK SUBTOTAL: 3,113,023 135,080 11,887 95.3% Source: CoStar GRAND TOTAL: 34,061,375 4,391,594 150,320 86.7% The information contained herein was obtained from CoStar, therefore no warranty or representation as to the accuracy or completeness of this information can be made by Transwestern.

Page 8 of 8 Section V :: Southwest Submarket Overview Southwest Austin Summary Southwest Austin Aerial Southwest Austin Competitive Building Survey CoStar Survey: S-SE-SW Submarkets Buildings 30K SF or Larger 901 South MoPac Expressway, Building 4, Suite 250, Austin, Texas 78746 | 512.328.5600 | www.transwestern.net/austin CBD

Year-End Absorption Year-End Vacancy Date CBD Austin CBD Austin YE-2012 177,023 1,528,830 12.00% 13.70% YE-2011 167,794 1,650,766 13.30% 17.30% YE-2010 190,764 620,116 15.90% 23.10% YE-2009 (249,634) (743,579) 18.18% 24.88% YE-2008 226,255 469,029 12.46% 19.72% YE-2007 188,838 679,062 15.37% 15.74% YE-2006 383,490 1,269,123 18.33% 14.48% Source: CBRE Econometrics, CoStar

Southwest Austin Overview NW/FNW Spring :: 1Q 2013

Year-End Absorption Year-End Vacancy SW Statistics AtDate A Glance NW/FNW Austin NW/FNW Austin YE-2012 677,714 1,528,830 15.30% 13.70% The Southwest Submarket (SW) contains approximately 9 million square feet of existing multi-tenant office space. YE-2011 954,599 1,650,766 19.80% 17.30% YE-2010 14,469 620,116 27.60% 23.10% YE-2009 (569,424) (743,579) 28.16% 24.88% YE-2008 (167,643) 469,029 21.56% 19.72%

 SW Direct VacancyYE-2007 as of 1Q13192,639 is 7.8%, down 679,062(1.4%) compared 12.47%to 9.2% in 4Q12. 15.74% YE-2006 546,497 1,269,123 11.13% 14.48%  SW Direct Source:and Sublet CBRE VacancyEconometrics, as of CoStar 1Q13 is 7.8%, down (2.1%) from 9.9% in 4Q12.

 SW Direct and Sublet YTD Absorption as of 1Q13 is positive 117,416 sf. Total city-wide direct and sublet YTD absorption as of 1Q13 for Austin is positive 198,379 sf. SW SW Austin Annual Absorption & Vacancy Year-End Absorption Year-End Vacancy Date SW Austin SW Austin YE-2012 205,677 1,528,830 9.90% 13.70% YE-2011 367,752 1,650,766 12.30% 17.30% YE-2010 295,845 620,116 16.00% 23.10% YE-2009 (166,825) (743,579) 19.59% 24.88% YE-2008 307,854 469,029 17.07% 19.72% YE-2007 (16,144) 679,062 15.87% 15.74%

YE-2006 312,429 1,269,123 7.12% 14.48% Source: CBRE Econometrics, CoStar Absorption Austin Office Market  Average askingVacancy rent for the SW submarket for Class A space is $31.50 psf gross, or approximately $18.50 psf NNN as of 1Q13 (assumes $13.00 Absorptionpsf average Class andA operating Vacancy expenses for 2013, however some buildings have operating expenses as high as $16.00).

2000 30% SW Large Contiguous Block Direct Vacancies 1500 25%

As of 1Q13, there are 9 contiguous blocks of space larger than 20,000 square feet available for direct lease in the SW Submarket1000 totaling 434,253 square feet. Of these, 8 are between 20,000 and 99,000 square feet, and 120% is larger

than 100,000Absorption square feet. The larger blocks include the following: (In Thousands)(In 500 15%  CityView Center - 134,511 sf available Vacant % 0 10% SW Large Contiguous2002 2003 Block2004 Sublease2005 2006 Space2007 2008 2009 2010 2011 2012 YTD (500) 2013 5% In addition to the direct available space above, there are 2 large blocks of contiguous sublease space available (greater than (1000)20,000 sf) in the SW submarket totaling 112,325 square feet. Combined with the large block direct0% available space, the SW submarket contains 11 large blocks of contiguous available space greater than 20,000 contiguous square feet each, totaling 546,578 square feet. See “Large Contiguous Office Vacancy Survey” in Section I for a complete list of the large block availability.

. Sources: Transwestern MarketWatch, CoStar, CBRE MarketView, Cushman & Wakefield MarketBeat, Buls Sublease Report

Austin Submarkets

CBD Central Business District RR C Central E East FNW Far Northwest

FNW Dessau Rd N North P McNeil Drive a rm er Lane NE Northeast N NW Northwest RR Round Rock NW Burnet Rd NE S South SE Southeast C Lamar Blvd SW Southwest 45th St

51st St SW 35th St Note that for Austin in general, MLK E the majority of Office space is CBD concentrated in the Northwest, Far Northwest, CBD and Southwest Lamar Blvd.

Ben White submarkets - mostly west of IH-35. Industrial space is generally located in William CannonS Brodie Lane the Southeast, Northeast, North and SE Austin-Bergstrom International Airport Round Rock submarkets, and for the most part is east of IH-35. Slaughter Ln

AUSTIN SUBMARKETS

Sources: Transwestern, CoStar, CBRE Market View, Cushman & Wakefield MarketWatch, Buls-Hodge Sublease Report LOOP Plaza on 1 The Lake Austin LOOP Country AUSTIN SOUTHWEST 360 Club SUBMARKET Lake Austin San Westlake Drive Emma Long Clemente Metropolitan Park

Camp Mabry LOOP 360 22444 Wild Basin Wild Basin Wilderness

Preserve LOOP 1 Palisades West Esprit Enfield Barton Creek Blvd Wastewater Las Treatment Lions Muni Barton Creek Cimas Capitol Plant Golf Course UT Country Club Vista Ridge Center 15th St. Lost Creek Point Cityview & The Setting Escalade Cielo 2244 Hartland Plaza & Center Capstar at Compass LOOP Plaza Barton Springs AUSTIN Westlake Mira 1 Lady Bird Lake Barton Creek Place Vista CBD LOOP 360 Intel Barton Oaks Plaza Long Ctr & Palmer Auditorium Barton Barton Skyway & 811 Barton Creek Spyglass Lantana Mall Point Corp. Center Southwest Pkwy The AMD Terrace

7000 W Overlook Park on Barton @Gaines Barton Travis Oaks Creek S. Lamar South 1st & Overwatch Ranch Creek Plaza Parkway @ Oakhill Freescale Highi way Brodie Oaks Highi way (Motorola MOS 11) 290 71 Shopping Ctr Sunset Valley Burger 35 Shopping Center Center Highi way 71 LOOP 1 Walmart IRS Southfield

Brodie Lane Southpark William Cannon One

Stassney Southwest Austin Competitive Office Market Survey First Quarter 2012 (As of April 1, 2013)

Building Name Bldg Year Square Feet % Occup Core Lease Asking Escal- Est. 2013 T.I. Parking Address Class or Built/ Total Direct Sublease (Excluding Factor Term Rental ation Oper. Allowance Type, Ratio, Owner/Contact Type # Flrs NRA Available Available Sublse) (%) (Mo.s) Rate(s) Provision Exp. PSF Charges 3001 Bee Cave Road 1985 3001 Bee Cave Road B 53,321 22,177 0 58% 18.00% 36-120 $15.50 Net $10.00 Neg. 3.7/1000 AQUILA Commercial - Bethany Perez 3 to $18.00 Surface 684-3800 [email protected] 4401 Westgate Blvd (AT&T Bldg) 2002 4401 Westgate Boulevard A 95,500 3,550 0 96% 17.00% 36-120 $17.50 Net $12.50 Neg. 5/1000 Equitable Commercial Realty- Matt Levin/Jason Steinberg 4 Surface/Covered 476-3400 [email protected] 7000 West I 1999 7000 West William Cannon Drive A 68,337 0 0 100% 17.00% 36-120 $16.00 Net $9.95 Neg. 4.4/1000 Brandywine - Ralph Bistline 2 Surface/Covered 304-1994 [email protected] 7000 West II 2000 7000 West William Cannon Drive A 67,989 0 0 100% 17.00% 36-120 $16.00 Net $9.95 Neg. 4.4/1000 Brandywine - Ralph Bistline 2 Surface/Covered 304-1994 [email protected] 811 Barton 1986 811 Barton Springs Road A 143,183 0 0 100% 16.00% 36-120 $21.00 Net $12.39 Neg. 3/1000 Transwestern - Brandon Lester 9 Covered 328-5600 [email protected] 9225 Bee Caves Bldg B (frmly TRI Office Ctr) 2010 9225 Bee Caves Rd. B 51,000 0 0 32% 15% 60-120 $17.00 Net $8.00 Neg. 4.0/1000 The Kucera Co. - David Stojanik 2 Surface 346-0025 [email protected] Barton Creek Plaza I 1984 3755 S. Capital of Texas Highway B 72,974 3,609 0 95% 17.00% 36-120 $17.50 Net $12.50 Neg. 3.8/1000 Live Oak-Gottesman - Anne Swift 3 Surface 472-5000 [email protected] Barton Creek Plaza II 1999 3801 S. Capital of Texas Highway A 64,677 0 4,600 100% 17.00% 36-120 $19.50 Net $10.32 Neg. 3/1000 CBRE - Katie Ekstrom 3 Surface 499-4900 [email protected] Barton Creek Plaza III 1999 3815 S. Capital of Texas Highway A 64,597 29,431 0 54% 17.00% 36-120 $19.50 Net $11.27 Neg. 3/1000 CBRE - Katie Ekstrom 3 Surface 499-4900 [email protected] Barton Oaks Plaza I 1985 901 South MoPac Expressway A 98,995 4,377 0 96% 16.00% 60-120 $19.00 Net $11.82 Neg. 3.3/1000 Stream Realty - Brad Philp 5 Surface/Covered 481-3000 [email protected] Barton Oaks Plaza II 1987 901 South MoPac Expressway A 116,368 11,481 10,000 90% 16.00% 60-120 $21.00 Net $12.83 Neg. 2.85/1000 HPI Real Estate - Richard Paddock/Adri Baker 5 to $22.00 Surface/Covered 853-4455 [email protected] Barton Oaks Plaza III 1998 901 South MoPac Expressway A 121,467 7,007 0 94% 16.00% 60-120 $21.00 Net $12.30 Neg. 3.6/1000 HPI Real Estate - Richard Paddock/Adri Baker 5 to $22.00 Surface/Covered 853-4455 [email protected]

SW Austin Office Survey - Pg 1 of 6 4/28/2013 Southwest Austin Competitive Office Market Survey First Quarter 2012 (As of April 1, 2013)

Building Name Bldg Year Square Feet % Occup Core Lease Asking Escal- Est. 2013 T.I. Parking Address Class or Built/ Total Direct Sublease (Excluding Factor Term Rental ation Oper. Allowance Type, Ratio, Owner/Contact Type # Flrs NRA Available Available Sublse) (%) (Mo.s) Rate(s) Provision Exp. PSF Charges Barton Oaks Plaza IV 1995 901 South MoPac Expressway A 112,000 0 0 100% 15.00% 36-120 $33.00 Gross/BY $12.32 Neg. 3.5/1000 TIG Real Estate Services - David Alsmeyer 5 Surface/Covered 723-0400 [email protected] Barton Oaks Plaza V 1997 901 South MoPac Expressway A 119,549 0 0 100% 16.00% 36-120 $22.00 Net $11.67 Neg. 4.0/1000 TIG Real Estate Services - David Alsmeyer 5 Surface/Covered 723-0400 [email protected] Barton Skyway I 1998 1501 South MoPac Expressway A 195,324 12,950 0 93% 17.00% 36-120 $22.00 Net $12.81 Neg. 4.0/1000 Brandywine - Ralph Bistline 4 Surface/Covered 306-1994 [email protected] Barton Skyway II 1999 1601 South MoPac Expressway A 195,639 47,583 0 76% 17.00% 36-120 $22.00 Net $13.02 Neg. 4.0/1000 Brandywine - Ralph Bistline 4 Surface/Covered 306-1994 [email protected] Barton Skyway III 2001 1221 South MoPac Expressway A 173,302 7,050 0 96% 17.00% 36-120 $22.00 Net $12.75 Neg. 4.0/1000 Brandywine - Ralph Bistline 4.5 Surface/Covered 306-1994 [email protected] Barton Skyway IV 2001 1301 South MoPac Expressway A 222,567 0 0 100% 17.00% 36-120 $22.00 Net $12.07 Neg. 4.0/1000 Brandywine - Ralph Bistline 5 Surface/Covered 306-1994 [email protected] Canyon at Wild Basin 1999 115 South Wild Basin Road A 74,580 19,868 848 73% 17.00% 36-120 $15.00 Net $10.51 Neg. 4.0/1000 The Kucera Co. - David Stojanik 3 Surface/Covered 346-0025 [email protected] Capital View Center 1984 1301 Cap of Texas Hwy South B 50,997 17,670 0 65% 16.00% 36-120 $13.50 Net $9.37 Neg. 3.33/1000 HPI Real Estate - Adri Baker 3 Surface/Covered 835-4455 [email protected] Centre I 1987 3103 Bee Caves Road B 39,903 6,838 0 83% 15.00% 36-60 $14.00 Net $11.00 Neg. 4.0/1000 Commercial Property Svs - Kyle Gillman 2 Surface 454-9800 [email protected] Centre II 1986 3101 Bee Caves Road B 56,410 10,154 0 82% 17.00% 36-120 $17.00 Net $10.54 Neg. 3.4/1000 CBRE - Casey Ford 3 Surface 499-4900 [email protected] Cielo Center 1985 1250 S. Capital of Texas Highway A 270,711 0 0 100% 15.00% 36-120 $16.00 Net $12.45 Neg. 3.57/1000 Brandywine - Ralph Bistline 6 Surface/Covered 306-1994 [email protected] CityView Center 1997 1120 S. Capital of Texas Highway A 137,763 66,031 0 52% 17.00% 36-120 $19.50 Net $10.75 Neg. 3.75/1000 Transwestern - Luke Wheeler/Will Stewart 3 Surface/Covered 328-5600 [email protected]

SW Austin Office Survey - Pg 2 of 6 4/28/2013 Southwest Austin Competitive Office Market Survey First Quarter 2012 (As of April 1, 2013)

Building Name Bldg Year Square Feet % Occup Core Lease Asking Escal- Est. 2013 T.I. Parking Address Class or Built/ Total Direct Sublease (Excluding Factor Term Rental ation Oper. Allowance Type, Ratio, Owner/Contact Type # Flrs NRA Available Available Sublse) (%) (Mo.s) Rate(s) Provision Exp. PSF Charges CityView 1 (frmly The Setting 1) 1985 1120 S. Capital of Texas Highway A 46,702 0 0 100% 17.00% 36-120 $16.50 Net $9.66 Neg. 3.75/1000 Transwestern - Luke Wheeler/Will Stewart 3 Surface/Covered 328-5600 [email protected] CityView 2 (frmly The Setting 2) 1985 1120 S. Capital of Texas Highway A 47,809 9,106 0 81% 17.00% 36-120 $16.50 Net $9.66 Neg. 3.75/1000 Transwestern - Luke Wheeler/Will Stewart 3 Surface/Covered 328-5600 [email protected] CityView 3 (frmly The Setting 3) 1985 1120 S. Capital of Texas Highway A 48,044 0 0 100% 15.00% 36-120 $16.50 Net $9.66 Neg. 3.75/1000 Transwestern - Luke Wheeler/Will Stewart 3 Surface/Covered 328-5600 [email protected] Crystal Mountain 1, 2 & 3 1997 9433 Bee Caves Road B 56,507 17,344 0 69% 15.00% 36-120 $23.00 Gross/BY $9.41 Neg. 3.7/1000 Equitable Commercial Realty - Matt Levin 2 Surface 476-3400 [email protected] Escalade Bldg A 1985 4301 Westbank Drive A 56,701 0 0 100% 18.00% 36-120 $16.50 Net $11.00 Neg. 3.3/1000 HPI Real Estate - Richard Paddock/Adri Baker 3 Surface 835-4455 [email protected] Escalade Bldg B 1985 4301 Westbank Drive A 56,701 18,279 0 68% 18.00% 36-120 $16.50 Net $11.00 Neg. 3.3/1000 HPI Real Estate - Richard Paddock/Adri Baker 3 Surface 835-4455 [email protected] Hill Country Galleria (Office) Bldgs A, F, R & T 2008 12700 Hill Country Blvd A 147,000 12,446 0 92% 17.00% 36-120 $20.00 Net $11.57 Neg. 4/1000 Peloton CRE - Kevin Granger/Matt Frizzell 2 Surface/Covered 814-3400 [email protected] Lake Pointe Center 2 1998 11612 Bee Caves Road A 42,933 33,347 0 22% 15.00% 36-120 $24.00 Gross/BY $7.71 Neg. 4.0/1000 Equitable Commercial Realty - Matt Levin 2 Surface 476-3400 [email protected] Las Cimas I 1998 804 Las Cimas Parkway A 85,000 3,062 0 96% 17.00% 36-120 $18.00 Net $12.69 Neg. 4.0/1000 Moore & Associates - Julia Finney 3 Surface/Covered 512/476-0919 [email protected] Las Cimas II 2000 807 Las Cimas Parkway A 156,682 0 0 100% 17.00% 36-120 $24.00 Net $11.41 Neg. 4.0/1000 Peloton CRE - Kevin Granger/Brian Liverman 4 Surface/Covered 814-3400 [email protected] Las Cimas III 2001 805 Las Cimas Parkway A 156,682 20,811 0 87% 17.00% 36-120 $24.00 Net $11.41 Neg. 4.0/1000 Peloton CRE - Kevin Granger/Brian Liverman 4 Surface/Covered 814-3400 [email protected] Las Cimas IV 2008 900 South Capital of Texas Highway A 138,008 8,500 0 94% 15.80% 36-120 $21.00 Net $12.64 Neg. 4.0/1000 CBRE - Troy Holme/Katie Ekstrom 5 Surface/Covered 499-4900 [email protected]

SW Austin Office Survey - Pg 3 of 6 4/28/2013 Southwest Austin Competitive Office Market Survey First Quarter 2012 (As of April 1, 2013)

Building Name Bldg Year Square Feet % Occup Core Lease Asking Escal- Est. 2013 T.I. Parking Address Class or Built/ Total Direct Sublease (Excluding Factor Term Rental ation Oper. Allowance Type, Ratio, Owner/Contact Type # Flrs NRA Available Available Sublse) (%) (Mo.s) Rate(s) Provision Exp. PSF Charges Los Arboles at Barton Creek 1985 7004 Bee Caves Road B 50,000 10,820 0 78% 18.00% 12-120 $14.00 Net $10.56 Neg. 4.3/1000 Asterra-Lucian Morehead/Hudson Properties-Paul Hudson 3 to $15.00 Surface/Covered 328-8744 [email protected]/[email protected] Lost Creek Point 1984 1114 Lost Creek Blvd. B 73,026 15,246 0 79% 15.00% 36-120 $22.00 Full Svs $11.53 Neg. 3.25/1000 Capstone Commercial Mgmt/Lsg - Sam Shannon 6 to $24.00 Surface 646-6715 [email protected] Mira Vista 2002 2705 Bee Caves Road A 121,147 0 0 100% 18.00% 36-120 $23.00 Net $12.44 Neg. 4.9/1000 Live Oak-Gottesman - Anne Swift 3 Surface/Covered 472-5000 [email protected] One West Hills 1999 3901 South Lamar A 58,458 8,911 0 85% 14.00% 36-120 $14.50 Net $11.00 Neg. 3.3/1,000 Live Oak-Gottesman - Anne Swift 2 Surface 472-5000 [email protected] Overlook at Gaines Ranch 1999 4330 South MoPac Expressway A 50,725 0 0 100% 14.00% 36-120 $20.00 Net $12.91 Neg. 4.2/1000 Live Oak-Gottesman - Anne Swift 2 Surface/Covered 472-5000 [email protected] Palisades West I 2008 6300 Bee Caves Road A 220,000 0 0 100% 17.00% 36-120 $21.00 Net $11.62 Neg. 4/1000 Cousins Properties - Tim Hendricks 7 Surface/Covered 477-3434 [email protected] Palisades West II 2008 6300 Bee Caves Road A 156,000 0 0 100% 17.00% 36-120 $21.00 Net $11.62 Neg. 4/1000 Cousins Properties - Tim Hendricks 5 Surface/Covered 477-3434 [email protected] Parkway at Oak Hill I & II 2007 4801 Southwest Parkway A 145,475 0 0 100% 17.00% 36-120 $20.00 Net $8.77 Neg. 4.3/1000 Presidio Group - Tony Eugenio 2 Surface/Covered 210-826-9000 [email protected] Penn Field (Office) Bldgs B, C, D, G, J & K 1923/2000 3601 S. Congress Avenue A 101,796 11,591 0 89% 15.00% 36-120 $23.00 Net $7.71 Neg. 3/1000 Stream Realty - Brad Philp/Edvin Beasley 1 to $25.00 +E&J Surface/Covered 481-3000 [email protected] Plaza 290 1985 5316 Highway 290 West B 63,163 6,638 0 89% 15.00% 36-120 $16.50 Net $10.60 Neg. 4.33/1000 HPI Real Estate - Adri Baker 5 Surface/Covered 835-4455 [email protected] 5000 Plaza on the Lake 1987 5000 Plaza on the Lake Drive A 118,063 9,980 0 92% 18.00% 36-120 $22.00 Net $12.49 Neg. 3.3/1000 Endeavor - Jonathan Tate/Travis Dunaway 3 Surface/Covered 512/682-5570 [email protected] Plaza on the Lake I 1998 5001 Plaza on the Lake Drive A 122,530 36,190 0 70% 16.00% 36-120 $21.00 Net $11.52 Neg. 4.0/1000 CBRE - Troy Holme/Katie Ekstrom 3 Surface/Covered 499-4900 [email protected]

SW Austin Office Survey - Pg 4 of 6 4/28/2013 Southwest Austin Competitive Office Market Survey First Quarter 2012 (As of April 1, 2013)

Building Name Bldg Year Square Feet % Occup Core Lease Asking Escal- Est. 2013 T.I. Parking Address Class or Built/ Total Direct Sublease (Excluding Factor Term Rental ation Oper. Allowance Type, Ratio, Owner/Contact Type # Flrs NRA Available Available Sublse) (%) (Mo.s) Rate(s) Provision Exp. PSF Charges Plaza on the Lake II 1998 4801 Plaza on the Lake Drive A 111,166 0 0 100% 17.00% 36-120 $21.00 Net $12.22 Neg. 4.0/1000 CBRE - Troy Holme/Katie Ekstrom 3 Surface/Covered 499-4900 [email protected] Rialto I (Lantana Corp Ctr) 2001 7500 Rialto Blvd A 77,872 12,386 0 84% 17.00% 36-120 $18.00 Net $10.99 Neg. 4.33/1000 Lincoln Property Co. - Marshall Wilson 2 Surface/Covered 322-3206 [email protected] Rialto II (Lantana Corp Ctr) 2007 7500 Rialto Blvd A 77,508 0 0 100% 17.00% 60-120 $18.00 Net $10.10 Neg. 4.33/1000 Lincoln Property Co. - Marshall Wilson 2 Surface/Covered 322-3206 [email protected] 3600-B San Clemente 2001 3600 San Clemente A 90,267 0 0 100% 16.00% 36-120 $22.00 Net $12.10 Neg. 4/1000 HPI Real Estate - Richard Paddock/Adri Baker 3 Surface/Covered 835-4455 [email protected] 3900 San Clemente 2008 3900 San Clemente A 251,146 0 15,528 100% 19.20% 36-120 $22.00 Net $11.79 Neg. 4/1000 HPI Real Estate - Richard Paddock/Adri Baker 3 Surface/Covered 835-4455 [email protected] Spyglass Point 1999 1801 South MoPac Expressway A 58,576 25,531 0 56% 17.00% 36-120 $21.00 Net $12.99 Neg. 4.0/1000 Transwestern - Britt Reed 3 Surface/Covered 328-5600 [email protected] The Enclave 1987 301-307 Camp Craft Road B 44,704 2,767 0 94% 17.00% 36-120 $16.00 Net $8.06 Neg. 4.0/1000 Oxford Commercial - Kevin Kimbrough 2 + Elec Surface 370-2400 [email protected] The Park on Barton Creek 1 & 2 2007 3711 South MoPac Expressway A 211,000 0 0 100% 17.00% 60-120 $22.00 Net $12.13 $20.00 4.0/1000 Brandywine - Ralph Bistline 5 and $12.62 Covered 306-1994 [email protected] The Terrace 1 1997 2600 Via Fortuna A 115,460 0 0 100% 19.10% 36-120 $21.50 Net $12.76 Neg. 4.0/1000 AQUILA Commercial - David Putman/Ben Tolsen 5 Covered 684-3800 [email protected] The Terrace 2 1998 2700 Via Fortuna A 114,635 17,103 0 85% 19.40% 36-120 $21.50 Net $12.50 Neg. 4.0/1000 AQUILA Commercial - David Putman/Ben Tolsen 5 Covered 684-3800 [email protected] The Terrace 6 (formerly 5) 2002 2901 Via Fortuna A 196,717 80,839 0 59% 19.00% 36-120 $23.50 Net $12.31 Neg. 4.00/1000 AQUILA Commercial - David Putman/Ben Tolsen 6 Covered 684-3800 [email protected] The Terrace 7 2002 2801 Via Fortuna A 196,215 0 0 100% 17.54% 36-120 $22.50 Net $13.14 Neg. 4.0/1000 AQUILA Commercial - David Putman/Ben Tolsen 6 Covered 684-3800 [email protected]

SW Austin Office Survey - Pg 5 of 6 4/28/2013 Southwest Austin Competitive Office Market Survey First Quarter 2012 (As of April 1, 2013)

Building Name Bldg Year Square Feet % Occup Core Lease Asking Escal- Est. 2013 T.I. Parking Address Class or Built/ Total Direct Sublease (Excluding Factor Term Rental ation Oper. Allowance Type, Ratio, Owner/Contact Type # Flrs NRA Available Available Sublse) (%) (Mo.s) Rate(s) Provision Exp. PSF Charges Travis Oaks 2002 5113 Southwest Parkway A 123,434 3,324 0 97% 15.00% 36-120 $18.50 Net $10.94 Neg. 4.0/1000 Transwestern - Greg Johnson 3 Surface/Covered 328-5600 [email protected] Vista Ridge I 1985 912 S. Capital of Texas Highway B 75,131 13,581 0 82% 17.00% 36-120 $12.00 Net $8.82 Neg. 3.3/1000 Oxford Commercial - Kevin Kimbrough/Brent Powdrill 4 Surface 474-2400 [email protected] Vista Ridge II 1985 916 S. Capital of Texas Highway B 54,000 0 0 100% 18.00% 36-120 $24.00 Gross/BY $10.00 Neg. 3.3/1000 Asterra Prop. - Lucian Morehead 2 Surface 705-2504 [email protected] Westlake Place 1981 1515 S. Capital of Texas Highway B 61,184 0 0 100% 17.00% 36-120 $17.25 Net $8.80 Neg. 4.0/1000 Berns Commercial - Richard Berns 5 Surface 328-7774 [email protected] Wild Basin I 1985 110 Wild Basin Road A 60,498 9,035 1,900 85% 18.00% 36-120 $15.50 Net $11.16 Neg. 3.5/1000 HPI Real Estate - Richard Paddock/Adri Baker 3 Surface/Covered 835-4455 [email protected] Wild Basin II 1986 108 Wild Basin Road A 74,626 13,090 0 82% 18.00% 36-120 $15.50 Net $11.00 Neg. 3.5/1000 HPI Real Estate - Richard Paddock/Adri Baker 3 Surface/Covered 835-4455 [email protected] Wild Basin Atrim Park 1986 206 N. Wild Basin Road B 67,500 6,541 0 90% 17.00% 36-120 $10.50 Net $8.02 Neg. 3.3/1000 Stream Realty - Brad Philp/Edvin Beasley 3 to $12.00 Surface 481-3000 [email protected]

Occupancy Including Direct Space TOTALS WITH THE NEW BUILDING ADDED Sublease Only TOTALS - THIS QUARTER 7,047,944 676,244 32,876 89.9% 90.4% TOTALS FROM LAST QUARTER 6,989,486 669,666 16,569 90.2% 90.4% DIFFERENCE 58,458 6,578 16,307 -0.2% 0.0%

Occupancy Including Direct Space TOTALS WITHOUT THE NEW BUILDING ADDED Sublease Only TOTALS - THIS QUARTER 6,989,486 667,333 32,876 90.0% 90.5% TOTALS FROM LAST QUARTER 6,989,486 669,666 16,569 90.2% 90.4% DIFFERENCE 0 (2,333) 16,307 -0.2% 0.0%

SW Austin Office Survey - Pg 6 of 6 4/28/2013 Office Buildings Larger Than 30,000 SF - S / SE / SW Submarkets 4/27/2013 Year No. of Total Bldg Direct Sublet % Quoted Parking Submarket Building Name Building Address Class Built Stories RBA (SF) Available SF Available SF Leased Rent Ratio South 118 East Riverside 118-158 Riverside Dr E 1977 C 2 142,428 100 - South 1400 S Congress Ave 1400 S Congress Ave 2007 B 3 42,176 1,226 0 97.09 $26.00 South 150 E Riverside Dr 150 Riverside Dr E 1974 C 5 130,473 100 - 3 South 1524 Office Building 1524 I-35 S 1980 C 3 74,879 26,038 1,723 70.28 $17.81 3.33 South 4007 James Case Bldg C 4007 James Casey St 1983 C 2 30,000 0 5,020 100 $24.00 South 4401 Westgate Blvd 4401 Westgate Blvd 2002 A 4 100,000 3,350 3,350 96.65 $24.00 5 South 706 Ben White B 706 W Ben White Blvd 1979 B 2 70,000 27,470 0 96.47 $18.03 South Austin Diagnostic Clinic South 4315 James Casey St 1993 B 3 31,827 100 - South Austin Housing Authority 1124 I-35 S 1978 B 3 113,161 100 - 6 South Barton Ridge 4544 Lamar Blvd S 1986 B 1 108,000 9,393 0 91.3 $17.00 5 South Bevington Reed Bldg 200 Riverside Dr E 1973 C 2 74,125 100 - 3.37 South Brodie Oaks Professional Plaza 4029 S Capital Of Texas Hwy 1984 B 2 36,595 13,704 0 93.88 $21.00 5.19 South Congress Square 510 Congress Ave S 1971 C 5 41,511 1,017 0 100 $19.20 3.33 South Congress Square II 611 S Congress Ave 1971 B 5 51,254 100 - 3.57 South Fountain Park Plaza I 3000 S IH-35 1973 B 4 76,000 3,613 0 95.25 $17.00 3.33 South Fountain Park Plaza III 2800 S IH-35 1974 B 2 56,463 15,232 0 73.02 $17.00 4 South Lakeshore Tower 210 Barton Springs Rd 1974 B 5 74,637 10,194 0 86.34 $25.17 4 South Medical Center South Condos 4207 James Casey St 1986 B 3 34,170 3,040 3,964 91.1 $22.96 South Medical Oaks Park 4101 James Casey St 1996 B 3 48,000 100 - 5 South One Texas Center 505 Barton Springs Rd 1983 A 13 213,862 100 - 4 South One West Hills 3901 S Lamar Blvd 1985 C 4 58,458 8,911 0 84.76 $14.50 3.3 South Penn Field H 3601 S Congress Ave 1918 B 1 49,040 3,068 0 93.74 $25.00 5 South PPD Bldg A 706 Ben White Blvd W 1985 B 2 30,637 30,637 0 0 $18.00 South Regency Office Park (XO Comm) 2100 I-35 S 1963 B 2 102,590 100 - 4.97 South Salvation Army Admin 4216 S Congress Ave 1991 B 2 47,351 100 - South Southfield Office Building 4000 I-35 S 1986 A 9 141,768 100 - 4.74 South Southwestern Bell 701 South Center St 1977 C 1 39,448 100 - South Stonegate Office Condominiums 2501 W William Cannon Dr 2006 B 1 48,760 100 - 5 South The BeAwareHouse 3800 S Congress Ave 1949 C 2 32,000 100 - 0.9 South The Corners Office Bldg 3001 S Lamar Blvd 1984 B 3 31,598 0 1,455 100 $8.00 4.15 South The Robert T. Chapa, Sr. Building 1430 Collier St B 2 32,578 100 - South The Terrace 200 Academy Dr 1954 B 2 48,080 100 - 4 South Two Park Place 4009 Banister Ln 1985 B 4 36,690 3,328 3,135 90.93 $17.09 SOUTH SUBTOTAL: 2,248,559 160,221 18,647 92.0% Southeast 1615 Woodward St 1615 Woodward St 1967 B 3 445,071 100 - Southeast 2021 Woodward St 2021 Woodward St B 1 83,279 100 - Southeast 2801 IH-35 S 2801 IH-35 S 1970 B 1 41,856 4,253 0 89.84 $17.00 8 Southeast 5800 Ben White Blvd 5800 Ben White Blvd 1985 C 2 46,240 100 - Southeast Austin IRS SPB 3651 S IH 35 1964 B 2 471,757 100 - Southeast Bergstrom Park Bldg 312 6800 Burleson Rd 1986 B 2 204,346 204,346 0 0 Withheld 4.02 Southeast Forum Park Office Bldg 2211 IH-35 S 1981 B 4 43,897 17,466 0 78.77 $16.00 3.7 Southeast IRS Compliance Center 1821 Directors Blvd 1985 B 2 206,418 100 - 2.25 Southeast Met Center 4 7401 E Ben White Blvd 1999 B 1 203,768 100 - Southeast Met Center 9 7401 E Ben White Blvd 2000 B 1 103,235 100 - 4 Southeast Met Center Phase II - 4 7100 Metropolis Dr 2012 A 1 172,800 172,800 0 0 Withheld 6 Southeast Semicon Business Park 6101 E Oltorf St 1995 B 2 184,000 100 - Southeast Skyline Building 1949 S I-35 1985 C 3 33,437 100 - 3.33 Southeast South Austin Market Place 2023-2119 E Ben White Blvd 1979 B 1 40,000 100 -

Page 1 of 4 Office Buildings Larger Than 30,000 SF - S / SE / SW Submarkets 4/27/2013 Year No. of Total Bldg Direct Sublet % Quoted Parking Submarket Building Name Building Address Class Built Stories RBA (SF) Available SF Available SF Leased Rent Ratio Southeast Southcliff Bldg 2015 I-35 S 1980 B 3 55,284 7,103 0 87.15 $15.50 4 Southeast Southgate Bldg 2101 I-35 S 1971 C 5 52,265 13,933 0 98.21 $16.37 4 Southeast Southpark E 2100 Saint Elmo Rd E 1982 C 1 49,966 100 - 3.66 Southeast Southpark Office Center 5015 S IH-35 2007 B 1 122,916 29,981 0 75.61 $13.00 5.3 Southeast Southpark One 1701 Directors Blvd 1984 A 10 154,939 28,866 0 84.95 $24.00 4 Southeast Tokyo Electron America 2400 Grove Blvd 1995 B 3 145,788 100 - Southeast Transactive Bldg 1713 I-35 S 1984 C 2 39,425 100 - 4.16 Southeast Wells Fargo Bank Bldg 2028 E Ben White Blvd 1985 B 5 54,867 1,479 0 97.3 $19.00 3.33 SOUTHEAST SUBTOTAL: 2,955,554 480,227 0 83.8% Southwest 290 West Bldg 5508 W Hwy 290 1985 B 3 74,485 2,307 0 96.9 $23.00 4.44 Southwest 3001 Bee Cave Rd 3001 Bee Caves Rd 1985 B 3 53,321 22,177 0 86.92 Withheld 3.77 Southwest 3003 Bee Caves Rd 3003 Bee Caves Rd 1997 B 1 61,192 100 - Southwest 3600-B San Clemente 3600 N Capital Of Texas Hwy, 2006 B 3 90,267 7,238 15,258 100 $18.61 4 Southwest 3900 San Clemente 3900 N Capital Of Texas Hwy 2008 A 5 251,495 100 - 4 Southwest 4201 Bee Cave Rd 4201 Bee Cave Rd 1986 C 2 58,058 100 - Southwest 5000 Plaza on the Lake 5000 Plaza On The Lake Dr 1987 A 3 119,087 31,084 1,084 91.62 $21.81 3.56 Southwest 609 Bldg - Wells Fargo Bank 609 Castle Ridge Rd 1985 B 4 44,808 7,418 0 83.44 $25.00 3 Southwest 6207 Bee Caves Rd 6207 Bee Caves Rd 2000 B 3 42,249 2,675 0 93.67 $23.00 3.34 Southwest 7000 West at Lantana 1 7000 William Cannon Dr W 1999 A 2 68,086 100 - 4 Southwest 7000 West at Lantana 2 7000 William Cannon Dr W 1999 A 2 67,989 100 - 4 Southwest 721 Barton Springs Rd 721 Barton Springs Rd B 5 115,985 100 - Southwest 811 Barton Bldg 811 Barton Springs Rd 1986 A 9 142,444 7,836 0 94.5 $21.00 3 Southwest 8825 Bee Caves Rd 8825 Bee Caves Rd 2010 B 3 55,000 17,000 0 69.09 $23.00 4 Southwest 9225 Bee Cave Rd 9225 Bee Cave Rd 2009 C 47,590 100 - Southwest 9225 Bee Caves B 9225 Bee Caves Rd B 2 54,000 100 - Southwest AMD Campus 1 7171 Southwest Pky 2006 A 4 98,920 100 - Southwest AMD Campus 2 7171 Southwest Pky 2006 A 4 209,184 100 - Southwest AMD Campus 3 7171 Southwest Pky 2006 A 4 202,728 100 - Southwest AMD Campus 4 7171 Southwest Pky 2006 A 4 209,359 100 - Southwest AMD Campus 5 7171 Southwest Pky 2006 A 2 92,159 100 - Southwest Barton Creek Plaza I 3755 Capital Of Texas Hwy S 1984 B 3 72,974 4,315 0 94.09 $17.08 3.8 Southwest Barton Creek Plaza II 3801 Capital Of Texas Hwy S 1999 A 3 64,717 2,798 0 95.68 $19.50 3.8 Southwest Barton Creek Plaza III 3815 Capital Of Texas Hwy S 1999 A 3 64,597 29,431 0 100 $19.50 3.8 Southwest Barton Oaks Plaza I 901 MoPac Expy S 1985 A 5 99,404 0 200 100 Withheld 3.33 Southwest Barton Oaks Plaza II 901 MoPac Expy S 1987 A 5 116,368 17,199 0 90.13 $21.00 2.86 Southwest Barton Oaks Plaza III 901 MoPac Expy S 1998 A 5 121,467 23,180 0 94.23 $21.00 3.64 Southwest Barton Oaks Plaza IV 901 MoPac Expy S 1995 A 5 112,000 100 - 3.5 Southwest Barton Oaks Plaza V 901 MoPac Expy S 1997 A 5 105,653 11,006 0 93.55 Withheld 4.72 Southwest Barton Skyway I 1501 S Mopac Expy 1999 A 4 195,324 12,950 0 93.37 $22.00 3.87 Southwest Barton Skyway II 1601 S MoPac Expy 2000 A 4 196,000 47,583 10,178 100 $20.77 4 Southwest Barton Skyway III 1221 MoPac Expy S 2001 A 4 173,302 7,050 0 95.93 $22.00 4 Southwest Barton Skyway IV 1301 MoPac Expy S 2001 A 5 222,580 100 - 4 Southwest Bee Caves Office Condos 3345 Bee Caves Rd 1985 B 2 32,356 100 - 3.37 Southwest Canyon At Wild Basin 115 S Wild Basin Rd 1999 A 3 74,580 25,889 848 73.36 $14.97 4 Southwest Capital View Center A 1301 Capital Of Texas Hwy S 1984 B 3 35,333 100 - Southwest Capital View Center B 1301 Capital Of Texas Hwy S 1984 B 3 52,000 3,251 0 93.75 Withheld 4 Southwest Capital View Center C 1301 Capital Of Texas Hwy S 1984 B 4 47,384 17,670 0 62.71 $14.00 3.33 Southwest Centre I 3103 Bee Caves Rd 1987 B 2 40,644 6,838 0 83.18 $14.00 3.74

Page 2 of 4 Office Buildings Larger Than 30,000 SF - S / SE / SW Submarkets 4/27/2013 Year No. of Total Bldg Direct Sublet % Quoted Parking Submarket Building Name Building Address Class Built Stories RBA (SF) Available SF Available SF Leased Rent Ratio Southwest Centre II 3101 Bee Caves Rd 1986 B 3 54,610 13,247 1,873 81.41 $16.81 3.4 Southwest Cielo Center 1250 Capital Of Texas Hwy S 1984 A 6 270,711 0 1,374 100 $22.50 3.5 Southwest CityView 1 1120 Capital Of Texas Hwy S 1985 B 3 57,000 100 - 3.7 Southwest CityView 2 1120 Capital Of Texas Hwy S 1985 B 3 48,818 5,825 0 100 $16.50 3.7 Southwest CityView 3 1120 Capital Of Texas Hwy S 1985 B 3 48,817 9,106 270 81.35 $16.50 3.7 Southwest CityView Center 1122 Capital Of Texas Hwy S 2000 A 3 137,763 134,511 0 52.07 $19.50 3.75 Southwest Escalade Bldg A 4301 Westbank Dr 1985 B 3 57,216 100 - 3.33 Southwest Escalade Bldg B 4301 Westbank Dr 1984 B 3 56,875 18,279 0 67.86 $16.50 3.33 Southwest Hill Country Galleria F 12912 Hill Country Blvd 2007 B 2 43,780 7,092 0 83.8 $20.00 0.57 Southwest Hill Country Galleria R 12600 Hill Country Blvd 2008 B 2 73,686 23,892 10,000 67.58 Withheld 4.17 Southwest Hills Office Park 4611 Bee Caves Rd 1985 B 3 33,000 210 0 100 Withheld 3.33 Southwest Lake Pointe Center II 11612 Bee Caves Rd 1998 B 2 43,922 32,645 0 25.68 Withheld 4 Southwest Las Cimas I 804 Las Cimas Pky 1998 A 3 83,714 100 - 4 Southwest Las Cimas II 805 Las Cimas Pky 2000 A 4 156,682 9,500 0 100 $23.50 4 Southwest Las Cimas III 807 Las Cimas Pky 2001 A 4 156,682 20,781 0 91.18 $23.50 4 Southwest Las Cimas IV 900 S Capital Of Texas Hwy 2008 A 5 138,008 10,851 10,851 100 $18.25 4 Southwest Lost Creek Point 1114 Lost Creek Blvd 1984 B 5 76,372 21,072 1,380 80.04 $22.29 3.25 Southwest McArdle Business Park 317 Ranch Road 620 S 1985 B 3 36,000 100 - Southwest Mira Vista 2705 Bee Caves Rd 2002 A 3 124,291 100 - 4.7 Southwest Monterey Oaks Corp Park A 5700 MoPac Expy S 1999 B 1 52,650 100 - 8 Southwest Monterey Oaks Corp Park E 5700 MoPac Expy S 1999 B 1 37,800 100 - Southwest One Westlake Plaza 1705 Capital Of Texas Hwy S 1982 B 5 35,400 6,171 0 82.57 $24.35 3.33 Southwest Overlook At Rob Roy 6836 Bee Caves Rd 2002 B 4 50,000 100 - 3.3 Southwest Overwatch Campus 5301 Southwest Pky 2007 A 4 160,000 0 84,360 100 Withheld 4 Southwest Palisades 3006 Bee Caves Rd 1985 B 3 54,000 2,732 700 94.94 Withheld 2.7 Southwest Palisades West I 6300 Bee Caves Rd 2008 A 7 216,000 100 - Southwest Palisades West II 6300 Bee Caves Rd 2008 A 5 157,000 100 - 4 Southwest Parkstone Office Centre 4101 Parkstone Heights Dr 2003 B 3 48,000 100 - Southwest Parkway at Oak Hill One 4801 Southwest Pky 2007 A 2 59,376 100 - 1.82 Southwest Parkway at Oak Hill Two 4801 Southwest Pky 2007 A 2 86,413 100 - 0.6 Southwest Plaza 290 5316 Hwy 290 W 1985 B 5 63,163 9,706 0 84.63 $16.50 4.33 Southwest Plaza on the Lake I 5001 Plaza on the Lake Dr 1998 A 3 122,530 35,387 0 71.12 $22.00 4 Southwest Plaza on the Lake II 4801 Plaza On The Lake Dr 1998 A 3 114,261 100 - 4.35 Southwest Raintree Office Park 3530 Bee Caves Rd 1981 B 2 33,300 100 - 3.33 Southwest Rialto I 7500 Rialto Blvd 2001 A 2 77,922 12,386 0 84.1 $18.00 4.33 Southwest Rialto II 7500 Rialto Blvd 2006 A 2 77,506 36,339 27,965 53.11 $16.70 4.33 Southwest Rob Roy on the Creek 248 Addie Roy Rd 1998 B 3 36,000 2,644 0 100 Withheld Southwest Seton Southwest Health Plaza II 7900 FM 1826 2009 B 2 41,184 13,384 0 67.5 $22.90 Southwest Spyglass Point 1801 S Mopac Expy 1999 A 3 58,576 21,112 0 63.96 $21.00 4.27 Southwest Temple-Inland 1300 S MoPac Expy 1995 A 5 388,430 100 - 3.84 Southwest Terrace I 2600 Via Fortuna 1997 A 5 115,460 10,031 0 91.31 $21.00 4 Southwest Terrace II 2700 Via Fortuna Drive 1998 A 5 114,635 8,669 0 92.44 $21.00 4 Southwest Terrace VI 2901 Via Fortuna Dr 2002 A 6 196,717 73,353 0 62.71 $23.50 1.25 Southwest Terrace VII 2801 Via Fortuna 2002 A 6 192,000 100 - 1.56 Southwest The Hills Professional Offices 4613 Bee Caves Rd 2006 B 2 30,000 1,000 0 96.67 $22.00 5 Southwest The Overlook at Gaines Ranch 4330 Gaines Ranch Loop 1998 A 2 53,333 100 - 4.2 Southwest The Park At Barton Creek 1 3711 S MoPac Expy 2007 A 5 105,150 100 - 4.1 Southwest The Park At Barton Creek 2 3711 S MoPac Expy 2007 A 5 102,224 100 - 4.09

Page 3 of 4 Office Buildings Larger Than 30,000 SF - S / SE / SW Submarkets 4/27/2013 Year No. of Total Bldg Direct Sublet % Quoted Parking Submarket Building Name Building Address Class Built Stories RBA (SF) Available SF Available SF Leased Rent Ratio Southwest The Schoolyard 4201 Bee Caves Rd 1986 C 2 55,184 325 2,114 99.41 $20.00 4.2 Southwest The Y @ 71 Professional Building 7700 W Highway 71 2008 A 3 30,000 14,275 0 52.42 $22.00 4 Southwest Towers of Lakeway II 1919 Lohmans Crossing Rd 2008 B 2 30,060 100 - 5.13 Southwest Travis Oaks at Southwest Parkway 5113 Southwest Pky 2002 A 3 123,513 3,324 0 97.31 $18.50 5 Southwest Vista Ridge I 912 Capital Of Texas Hwy S 1985 B 4 74,506 13,581 0 81.77 $12.00 3.52 Southwest Westlake Hills Office Condos 3355 Bee Caves Rd 1983 B 2 47,156 100 - 3.33 Southwest Westlake Medical Center I 5656 Bee Caves Rd 2001 B 2 70,000 100 - Southwest Westlake Medical Center II - J 5656 Bee Caves Rd 2004 B 2 74,670 100 - 4 Southwest Westlake Place 1515 Capital Of Texas Hwy S 1981 B 5 61,184 3,495 0 94.29 $17.25 3.44 Southwest Westland Office Park J 5524 Bee Caves Rd 1984 C 2 49,000 100 - 3 Southwest Wild Basin Atrium B 206 Wild Basin Rd S 2001 B 4 51,410 100 - Southwest Wild Basin Atrium I 206 N Wild Basin Rd 1986 B 2 67,048 6,541 300 93.35 $11.57 3.33 Southwest Wild Basin I 110 Wild Basin Rd S 1985 A 3 60,498 13,917 1,900 98.34 $16.16 3.5 Southwest Wild Basin II 108 Wild Basin Rd 1986 A 3 74,626 13,090 0 82.46 $15.50 3.5 SOUTHWEST SUBTOTAL: 9,430,921 915,368 170,655 88.5% Source: CoStar GRAND TOTAL: 14,635,034 1,555,816 189,302 88.1% The information contained herein was obtained from CoStar, therefore no warranty or representation as to the accuracy or completeness of this information can be made by Transwestern.

Page 4 of 4 901 South MoPac Expressway, Building 4, Suite 250, Austin, Texas 78746 | (512).328.5600 | www.transwestern.net/austin Section VI :: Office Market Reports

1Q13 Office Market Report Comparison Summary What Is Up With These Market Reports? CB Richard Ellis 1Q13 MarketView Office Report Cushman & Wakefield 1Q13 MarketBeat Office Report Jones Lang LaSalle 1Q13 /Pulse/ Office Report NAI REOC 1Q13 Office Report Newmark Grubb Knight Frank 1Q13 Office Report Transwestern 1Q13 MarketWatch Office Report Xceligent 1Q13 Market Trends Office Report CoStar 1Q13 Office Report 901 South MoPac Expressway, Building 4, Suite 250, Austin, Texas 78746 | 512.328.5600 | www.transwestern.net/austin Spring (1Q13) Office Market Report Comparison Spring (1Q 2013) - Austin Office Market Report Comparison 4/24/2013

FULL MARKET REPORTS: CoStar tracks the full Austin office market. This means that in addition to counting the approximately 45M square foot multi-tenant (aka "for lease") office market, this report also tracks single-tenant buildings, owner- occupied buildings, medical office buildings and office condos. This "macro" view helps highlight correlations between job growth, occupancy and inventory that may not be apparent when analyzing only the multi-tenant office market.

CoStar - Quarterly Office Market Report Total Available % Y-T-D Submarket RSF SF Vacant Absorption Bastrop County (BC) 393,541 28,222 7.2% 12,597 Caldwell County (CC) 57,586 3,688 6.4% 536 CBD 13,730,874 1,209,351 8.8% (15,751) Cedar Park (CP) 1,299,686 142,961 11.0% 41,138 Central (C) 6,144,531 756,057 12.3% (56,820) East (E) 2,640,131 400,396 15.2% (22,103) Far Northeast (FNE) Far Northwest (FNW) 4,388,049 653,292 14.9% 63,231 Gerogetown (GT) Hays County (HC) North (N or NC) 6,649,792 481,811 7.2% 73,433 Northeast (NE) 3,697,081 435,148 11.8% (9,413) Northwest (NW) 16,253,632 1,844,626 11.3% 6,479 Round Rock (RR) 4,919,353 436,524 8.9% 7,378 South (S or SC) 7,155,380 451,811 6.3% 226,333 Southeast (SE) 3,455,283 487,363 14.1% 2,015 Southwest (SW) 10,271,497 922,999 9.0% (129,715) West Central (WC) 2,055,847 106,480 5.2% (11,410) 83,112,263 8,360,729 10.1% 187,928

MULTI-TENANT MARKET REPORTS: These reports track only multi-tenant office space, and exclude single tenant, owner-occupied and medical office space. These reports generally include buildings that are 10,000 square feet or greater in size. This "micro" view tracks specific changes in multi-tenant space and rental rates across and between the submarkets that may be obscured under the macro view of the Full Market Reports, above.

CB Richard Ellis - Office MarketView Cushman & Wakefield (Oxford) - Office MarketBeat Total Available % Quarterly Total Available % Y-T-D Submarket RSF SF Vacant Absorption RSF SF Vacant Absorption CBD 9,045,086 1,077,173 11.9% 24,653 8,630,127 975,204 11.3% 19,811 Cedar Park (CP) Central (C) 998,679 171,773 17.2% (11,421) East (E) 1,855,273 234,846 12.7% (51) Far Northeast (FNE) Far Northwest (FNW) 12,413,074 1,911,613 15.4% 56,840 Gerogetown (GT) Hays County (HC) North (N or NC) 2,905,950 802,332 27.6% 4,323 2,485,635 432,500 17.4% (15,473) Northeast (NE) 1,994,845 229,407 11.5% 10,537 Northwest (NW) 16,434,386 2,365,224 14.4% 64,001 3,950,337 505,643 12.8% (23,620) Round Rock (RR) 620,894 124,226 20.0% (4,265) 1,112,135 131,232 11.8% 56,042 South (S or SC) 1,746,355 379,799 21.7% (7,698) 2,103,594 103,076 4.9% 10,377 Southeast (SE) 992,420 249,097 25.1% (236) Southwest (SW) 9,514,959 743,357 7.8% 117,416 8,998,604 755,883 8.4% 114,888 West Central (WC) 42,122,903 5,726,957 13.6% 198,379 43,679,450 5,465,430 12.9% 217,745

Jones Lang LaSalle - Office /Pulse/ Report NAI REOC Austin - Office Market Report Total Available % Y-T-D Total Available % Quarterly Submarket RSF SF Vacant Absorption RSF SF Vacant Absorption CBD 9,329,516 961,807 10.3% (48,853) Cedar Park (CP) 399,096 75,460 18.9% 45,103 Central (C) 2,972,372 589,493 19.8% (61,324) East (E) 741,260 281,921 38.0% (22,950) Far Northeast (FNE) Not available at time Far Northwest (FNW) 2,685,347 490,146 18.3% 50,611 of publication Gerogetown (GT) Hays County (HC) 164,760 45,201 27.4% 10,181 North (N or NC) 3,065,312 325,988 10.6% 32,924 Northeast (NE) 1,961,631 352,049 17.9% 8,479 Northwest (NW) 11,742,551 1,476,202 12.6% 22,503 Round Rock (RR) 445,739 117,809 26.4% (212) South (S or SC) 3,823,733 336,900 8.8% 216,210 Southeast (SE) 1,530,232 298,694 19.5% 6,482 Southwest (SW) 5,647,552 642,164 11.4% (115,064) West Central (WC) 44,509,101 5,993,834 13.5% 144,090 0 0 0.0% 0

Page 1 of 2 Spring (1Q 2013) - Austin Office Market Report Comparison 4/24/2013

Newmark Grubb Knight Frank - Office Market Report Transwestern - Office MarketWatch Total Available % Y-T-D Total Available % Y-T-D Submarket RSF SF Vacant Absorption RSF SF Vacant Absorption CBD 10,398,856 1,164,672 11.2% (31,289) 10,187,117 1,109,020 10.9% (19,918) Cedar Park (CP) Central (C) 4,165,983 637,395 15.3% (59,980) 3,579,441 469,395 13.1% (57,490) East (E) 1,507,548 352,766 23.4% (22,950) Far Northeast (FNE) Far Northwest (FNW) Gerogetown (GT) Hays County (HC) North (N or NC) 4,343,092 421,280 9.7% 70,475 4,652,599 557,977 12.0% 27,181 Northeast (NE) 2,554,811 408,770 16.0% (1,177) 3,308,406 636,381 19.2% (7,346) Northwest (NW) 16,891,791 2,381,743 14.1% 92,144 15,881,748 2,256,602 14.2% 89,249 Round Rock (RR) 1,234,882 233,329 18.9% 67,987 South (S or SC) 4,952,960 361,566 7.3% 215,001 2,067,162 136,273 6.6% 3,728 Southeast (SE) 2,532,635 466,005 18.4% 6,694 1,243,078 455,485 36.6% 6,694 Southwest (SW) 7,403,702 747,774 10.1% (145,214) 8,395,552 867,896 10.3% 91,343 West Central (WC) 1,014,344 62,889 6.2% (6,476) 55,765,722 7,004,860 12.5% 117,228 50,549,985 6,722,358 13.3% 201,428

Xceligent - Office Market Trends Total Available % Y-T-D Submarket RSF SF Vacant Absorption CBD 8,189,844 918,639 11.2% (2,280) Cedar Park (CP) Central (C) 2,230,593 358,989 16.1% (2,736) East (E) Far Northeast (FNE) Far Northwest (FNW) 3,807,226 730,940 19.2% 13,631 Gerogetown (GT) Hays County (HC) North (N or NC) 1,063,227 370,756 34.9% 20,355 Northeast (NE) 1,866,972 288,702 15.5% 2,886 Northwest (NW) 12,824,184 1,457,180 11.4% 60,222 Round Rock (RR) 702,139 134,482 19.2% (2,155) South (S or SC) 1,533,096 104,008 6.8% (15,608) Southeast (SE) 1,039,950 168,087 16.2% (6,628) Southwest (SW) 8,190,160 755,307 9.2% 155,966 West Central (WC) 41,447,391 5,287,090 12.8% 223,653

Sources: CoStar, CB Richard Ellis, Cushman & Wakefield (Oxford Commercial), Jones Lang LaSalle, NAI REOC Austin, NGKF, Transwestern and Xceligent

Page 2 of 2 “What is up with these market reports?”

Anyone who tracks Austin office or industrial space has asked themselves this question. Why? Because Austin has a multitude of market reports available, and none of them can agree how big Austin’s office or industrial market is, much less how much absorption or vacancy we have.

What’s the problem? You’d think that it is just simple math - count the number of buildings and their vacancy, add it up, put it in your report. But the real issue is how you define the market. On one end you have CoStar, which counts every building - multi-tenant, single tenant, owner occupied, user buildings, medical office, office condos and private campuses like Dell, Samsung and Apple – regardless of size, to come up with the Austin office and industrial markets totaling over 80 million square feet. On the other end, you have the various commercial brokerage reports which count only the multi-tenant (i.e. “for lease”) buildings larger than 10,000 square feet, so they have the Austin office and industrial markets at approximately 40-50 million square feet. That’s a huge variance. So who’s right?

The simple answer? Everyone is right. There isn’t just one way to look at the data. Austin’s office and industrial markets are relatively small compared to Dallas or Houston. In fact, several of Dallas’ submarkets are larger than Austin’s entire multi-tenant office or industrial market. Our smaller size allows for a greater breath and depth of market intelligence. The various market reports each look at the Austin market from a slightly different angle, but they generally fall into two categories:

• Full (“Macro”) Market Reports - Delta Associates, Marcus & Millichap and CoStar track the macro-market, which includes all multi-tenant, single tenant, owner occupied, corporate headquarters, private campuses, user buildings, and in CoStar’s case office condos and medical office, regardless of the total building size. This all-inclusive perspective is more focused on how changes in the economy affect commercial real estate. For example, Apple’s 1M square foot headquarters campus in Northwest Austin is not a multi-tenant property and does not have lease space available, but if Apple vacated it would have a major impact on the Northwest multi-tenant office market, just like Dell closing its laptop manufacturing facility on Howard Lane had a huge impact on the surrounding multi-tenant industrial properties, including TechRidge. Due in part to the larger sample size of these macro reports, changes in occupancy and absorption are slightly flatter than the multi-tenant view, but the overall economic influences are taken into account in the reporting.

• Multi-Tenant Market Reports - Capital Market Research, CBRE, Cushman & Wakefield (Oxford Commercial), Newmark Grubb Knight Frank, Jones Lang LaSalle, NAI REOC, Xceligent and Transwestern’s MarketWatch, among others, track only the multi-tenant commercial real estate markets. Although each report has differing criteria, in general they include multi-tenant commercial buildings larger than 10,000 square feet in their sample set, and exclude owner occupied, private campuses, government buildings and the like. Changes in occupancy and absorption can be more dramatic from quarter to quarter for this smaller sample size, but changes in rental rates and shifts in occupancies between and within submarkets are much easier to track in these reports. Which report is the best?

It depends on what you need. We will provide all the market reports - both macro and multi-tenant – even those of our competitors, so that our clients can review the data and choose the type of reporting that best suits their needs. As we have learned over the years, the more information you have the better able you are to manage your assets and investments. The value-add to this equation is that Transwestern team members also provide strategic analysis, experience and market insight to help you evaluate the vast amount of data you receive. We team with our clients to give you the most in-depth and comprehensive view of the commercial real estate markets, both locally and nationally. Feel free to call any of our team members to discuss the enclosed materials. Contact information for each of Transwestern Austin’s senior team members is included on the inside front and back covers of this book. Or, visit our website at www.transwestern.net/austin or call 512.328.5600 and ask to speak to a team member if you have any questions or would like to discuss the information included in this Austin Office Market Overview. Austin Office MarketView

Q1 2013 CBRE Global Research and Consulting

VACANCY ASKING RATE ABSORPTION UNEMPLOYMENT 13.6% $27.20 PSF 198,379 SF 5.4%

VACANCY REACHES TWELVE-YEAR LOW, ASKING RATES AT FOUR-YEAR HIGH

Total Vacancy and Direct Asking Rate Quick Stats 26% $28.00 Change from last 24% $27.50 Q1 2013 QoQ YoY $27.00 22% Vacancy 13.6%   $26.50 20% Asking Rates $27.20   $26.00 18% Net Absorption 198,379 SF   $25.50 16% Under Construction 98,985 SF   $25.00 14% Delivered Construction 0   $24.50 12% $24.00 Hot Topics AMD Lonestar campus sells to investor, 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 bringing 860,000 SF of leased space to the Average Lease Rate PSF Total Vacancy Austin inventory. Citywide asking rates jump $0.96. Source: CBRE Research, 2013.

• Austin is the Fastest Growing City in America The Austin Office Market Office Market absorbed 198,379 SF in Q1, FORBES - JANUARY 2013 continues to prove its resiliency, as vacancy extending the streak of consecutive quarters of reaches a twelve-year low. Falling 60 basis positive absorption to nine. • Austin atop the list of “Best Cities for Job points, quarter-over-quarter (QoQ), citywide Seekers” vacancy is at 13.6%, which translates to 5.7 Backfilling all the space Cirrus Logic left NERDWALLET.COM - JANUARY 2013 million square feet (MSF) of vacant space. The at The Terrace, the Southwest Submarket last time vacancy was this low the market was contributed the bulk of the citywide absorption • #1 Destination on the Rise in the United two thirds the size it is today. for the quarter. As a part of this activity, States Bowman and Brooke vacated One American TRIPADVISOR.COM - JANUARY 2013 Eight of the last nine quarters have seen falling Center in the CBD for space at the Terrace,

vacancy - the only exception being Q3 2012, while Locke Lord vacated 100 Congress to • Austin ranks as the Best City for Small backfill the space at One American. Business THE BUSINESS JOURNALS when Cirrus Logic and Intel vacated space - FEBRUARY 2013 in the Southwest Submarket for their own buildings. Contributing to the falling vacancy Asking rates experienced the most dramatic • Austin is the #1 City for Young Entrepreneurs and growing inventory is the addition of the spike in six years, QoQ, due in large part to UNDER30CEO - MARCH 2013 recently sold 857,000 SF AMD campus in increased taxes and augmented operating southwest Austin. expenses for 2013. Marking the sixth • Austin is the 2nd Best Performing Large City consecutive quarter of increased asking rates, MILKEN’S INSTITUTE - JANUARY 2013 With the fiscal cliff averted and sequestration the citywide average is $27.20 full service, per now realized, businesses can begin to square foot (PSF). This also marks the highest • #3 City for Good Jobs strategically approach growth opportunities, average since Q4 2008, when the citywide FORBES - FEBRUARY 2013 as can be demonstrated by the significant average asking rate was $27.30. Concessions number of new deals and expansions inked in have all but dried up in most submarkets, yet • #6 in Private Tech Company Acquisitions free rent still serves to help mitigate moving PRIVCO - FEBRUARY 2013 the first quarter. costs and attract new tenants. Though absorption was relatively low, compared to the previous quarter, the Austin

© 2013, CBRE, Inc.

$19.41 $17.06 $14.57 $23.47 $24.80 $28.71 $22.40 $21.01 Class B © 2013, CBRE, Inc. N/A N/A $25.42 $31.50 $28.21 $28.84 $31.84 $40.50 Lease Rates $/SF/YR Class A Average Direct Asking

0 0 0 0 0

SF 40,985 58,000 58,000 98,985

Under Construction

0 0 0 0 0 0 0 0 SF Delivered Drilling Info expanding at The VI Terrace for 65,000 SF. Bowman and Brooke commenced on 24,000 SF at The VI; vacated Terrace 30,000 SF at One American Center. Broadcomm commenced on 24,000 SF at The Terrace VI. Locke Lord commenced on 32,000 SF at One American Center; vacated 43,000 SF at 100 Congress. Construction

• • • • MARKET DEMAND Citywide SF for absorption reached 198,379 activity the majority the of however quarter, the was isolated the to Southwest, Northwest, and CBD Submarkets. The Southwest Submarket was responsible for most the of absorption this quarter, SF commencing at The the Terrace. with 113,052 Northwest Submarket thanks absorbed 62,000 SF, expansion severalto deals at including Oracle’s ParmerBusiness Park. And the CBD saw several tenants shuffle betweenand buildings, saw many commencements. deals for 2013 inked Major deals Q4 of 2012:

(51) 4,323 1Q13 SF

Net 24,653 (7,698) 64,001 (4,265) 117,416 198,379 4Q12

25% 23% 21% 19% 17% 15% 13%

Absorption 3Q12

2Q12

1Q12 4Q11

7.8% 11.9% 3Q11 27.6% 14.4% 21.7% 12.7% 20.0% 13.6%

Rate

Vacancy 2Q11

1Q11

4Q10 3Q10

Q2 Q4 Vacancy Rate 2Q10 1Q10 Overall Net Absorption SF

124,226 379,799 379,799 743,357 234,846 234,846 802,332

1,077,173 4Q09 Vacant

2,365,224 2,365,224

5,726,957 5,726,957

3Q09

2Q09

1Q09 4Q08

Class B

3Q08 Area 2Q08 620,894

9,514,959 1,746,355 1,746,355 1,855,273

9,045,086

2,905,950 Rentable

16,434,386 16,434,386 1Q08 42,122,903 42,122,903

4Q07 3Q07

Class A 2Q07

Q1 Q3 Total Annual Net Absorption 2006 2007 2008 2009 2010 2011 2012 2013 1Q07 0

SF 600,000 200,000

North Central Round Rock Round Northwest East South Southwest CBD

800,000 600,000 400,000 200,000

(200,000) (600,000) 2,200,000 1,800,000 1,400,000 1,000,000 SF Absorption Net (200,000) (400,000) (600,000) (800,000) 1,000,000 Market Statistics Totals (1,000,000) Market (1,000,000) Source: CBRE Research, 2013.

Source: CBRE Research, 2013.

OFFICE FIRST QUARTER FIRST OFFICE MARKETVIEW ABSORPTION AND VACANCY RATE

Q1 2013 Austin Office | MarketView 2 © 2013, CBRE, Inc.

OFFICE RENTSOFFICE The citywide QoQ, average to asking ratejumped $0.96, representing a 3.65% change. The last time Austin $27.20, experienced this kind rent of growth was between Q3 2006 when rates $26.24, to jumped from $22.02 and Q2 2007, increases per quarter. averaging $1.41 The Northwest and CBD Submarkets saw the greatest increase operating in expenses buildings - many increasing a dollar perover square foot (PSF) - with places 301 like Congress each recording and Chase two Tower over dollars In some rates buildings, increasedPSF. more than three quarter. the over dollars This kind rapid of rent growth and unrelenting demand have caused some wonder to if Austin price will itself out the of future. near the in market national PRODUCT OFFICE Given that there 3 MSF over is demand of the in market at and a citywide occupancythe Austin 86.4%, of close Q1, of poisedis for new development. Some large campus users, as such Apple and National Instruments, have already begun construction on expansions or have plans build before to there Currently, the are two end the of year. projects under construction, just totaling under 100,000 SF for non-owner- occupied buildings. With the market tightening and no significantsupply in the with terms longer considering are tenants pipeline, near-term flexibilitybuilt-in (ie - termination to hedge rights, etc.) against rental rate inflation. UNEMPLOYMENT Employment the in Austin-Round Rock-San Marcos MSA continues outperform to both state and national figures, though the gap may closing. be The Austinarea in unemployment February, in jumped from 5.4% to 4.9% November According last of the to year. Austin American Stateman, can this be spike attributed retailers to cutting expenses after the busy holiday season. senior Hope Dave Porter, on is the horizon, however. vice president for economic development at the Greater Austin Chamber Commerce, of recently “We said, have had double of a spike or triple the normal of amount (business relocation) activity since the November election Californiain [when Proposition that 30, a bill increased income and sales tax, was approved].” according the Home sales were 33% up January, in YoY, Austin Board Realtors, of with almost 40% new of listings under days. contract within 14 Deliveries Market Average Austin - Round Rock - San Marcos MSA Marcos - San Rock - Round Austin Class B Under Construction Texas Class A US 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 1Q13 2007 2008 2009 2010 2011 2012 2013 0

9% 8% 7% 6% 5% 4% 3% 2% 500,000 $32 $30 $28 $26 $24 $22 $20 $18 Source: Bureau U.S. of Labor Statistics, 2013. Unemployment Construction, SF Gross Annual Average Asking Rates, PSF Asking Rates, Average Gross Annual 10% 1,000,000 2,000,000 1,500,000 2,500,000 3,000,000

OFFICE FIRST QUARTER FIRST OFFICE STATISTICS MARKET Source: CBRE Research, 2013.

Q1 2013 Austin Office | MarketView 3 © 2013, CBRE, Inc. , we FACEBOOK GOOGLE+ TWITTER

+FOLLOW US +FOLLOW [email protected] CONTACTS this Austin Office information about For more please contact: MarketView, TEXAS RESEARCH Lynn Cirillo TX/OK Manager, Research Americas Research CBRE 2800 Post Oak, Suite 2300 Houston, TX 77056 e: [email protected] Trey Low Research Coordinator Austin Research CBRE Congress100 Avenue, Suite 500 Austin, TX 78701 4939 499 512 t: +1 e:

have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and have not verified it and make no guarantee, warranty or representation about it. It is your responsibility and all rights to the material are reserved and cannot be completeness. This information is presented exclusively for use by CBRE clients and professionals reproduced without prior written permission of the CBRE Global Chief Economist. DISCLAIMER RESEARCH AND CONSULTING GLOBAL and Consulting – a Global Research which forms part of CBRE Team Research This report was prepared by the CBRE U.S. real estate market research, econometric network of preeminent researchers and consultants who collaborate to provide the globe. forecasting and consulting solutions to real estate investors and occupiers around to be reliable. While we do not doubt its accuracy Information contained herein, including projections, has been obtained from sources believed

Q1 2013 Austin Office | MarketView 4

MARKETBEAT OFFICE SNAPSHOT

AUSTIN, TX Q1 2013 A Cushman & Wakefield Alliance Research Publication

ECONOMIC OVERVIEW through one deal alone, due to the sale/leaseback of the AMD Lone A record setting year for the Austin market in Star Campus. 2012 has generated a considerable amount of OUTLOOK excitement as we move into 2013. The city of The Austin office market is the strongest we have seen in years. Austin is continuing to gain national recognition Absorption had been positive for the past nine quarters and shows no due to our chart topping job growth and sign of retreating. Rental rates are poised to hold this upward trend renowned cultural attractions like the South by Southwest (SXSW) as the office market continues to tighten. Rumors about new, major music, film and interactive festival. For the third year in a row, Austin office projects have quickly moved into the realm of reality as more took the top spot on Forbes’s list of “America’s 20 Fastest Growing deals are set to break ground. We expect to see some substantial Cities.” Due to a high-performing business economy coupled with a movement in the construction pipeline in the forthcoming quarters. talented workforce, Austin’s unemployment numbers have remained low. The capital city saw the highest percentage of job growth in the STATS ON THE GO nation since the recession, according to Governor Rick Perry’s office. Q1 2012 Q1 2013 Y-O-Y 12 MONTH The Bureau of Labor Statistics reports the unemployment rate in the CHANGE FORECAST Austin area at 5.4%, which remains lower than the state and national Overall Vacancy 15.9% 12.5% -3.37 pp averages of 6.4% and 7.6%, respectively. Direct Asking Rents (psf/yr) $25.54 $27.54 7.8% MARKET OVERVIEW YTD Absorption (sf) 512,682 210,722 -58.9% For the ninth consecutive quarter, the Austin office market has experienced positive absorption with a total of 210,722 square feet (sf) of direct absorption for the first quarter of 2013. The Southwest DIRECT RENTAL VS. VACANCY RATES submarket experienced the highest level of absorption this quarter with a total of 123,611 sf of direct absorption. Although absorption $28.00 25.0% $27.50 totals are lower than the start of 2012, slower starts are typical for $27.00 20.0% $26.50 the first of the year. Expect to see absorption numbers rise again as 15.0% large leases are set to commence in the second and third quarters of $26.00 psf/yr $25.50 10.0% 2013. $25.00 $24.50 5.0% The overall vacancy rate in the Austin office market has continued to $24.00 trend down since 2009. Overall vacancy for Austin stands at 12.5%, $23.50 0.0% 2009 2010 2011 2012 Q1 2013 which is 3.4 percentage points less than the first quarter of 2012. Overall vacancy in the Far Northwest has dropped 21% since the first DIRECT GROSS RENTAL RATE DIRECT VACANCY RATE quarter of 2012 to 15.4%. The Central Business District overall vacancy has dropped for the seventh consecutive quarter to 11.3%. Expect vacancy to continue to plunge in the Austin office market as DIRECT ABSORPTION the demand for space stays healthy. 2.0 As vacancy rates continue to fall, it is not surprising that rental rates 1.5 1.49 in the Austin office market have increased across the board. For the 1.01 1.0 first quarter of 2013 the average full service asking rental rate for the msf

0.5 0.21 Austin office market stands at $27.54 per square foot (psf), up 7.8% 0.24 since the first quarter of 2012. The average full service asking rental 0.0 rate for class A space downtown has increased by 8.1% since the start -0.5 -0.04 of 2012 to a lofty $42.16 psf. As the Austin office market continues 2009 2010 2011 2012 Q1 2013 to tighten, expect rental rates to continue this upward trend. DIRECT ABSORPTION We saw a considerable number of buildings trade hands this quarter. The Southwest submarket gained 865,832 sf of class A inventory,

The market terms and definitions in this report are based on NAIOP standards. No Oxford Commercial For more information, contact: warranty or representation, express or implied, is made to the accuracy or completeness 1 200 W. Cesar Chavez, Suite 250 Holliday Hinckley, Research Director of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special Austin, TX 78701 512 637 5512 listing conditions imposed by our principals. www.oxfordcommercial.com [email protected] © 2013 Cushman & Wakefield, Inc. All rights reserved.

AUSTIN, TX SUBMARKET INVENTORY OVERALL DIRECT YTD LEASING UNDER YTD YTD DIRECT YTD OVERALL OVERALL WTD. AVG DIRECT WTD. AVG. VACANCY VACANCY ACTIVITY CONSTRUCTION CONSTRUCTION NET ABSORPTION NET ABSORPTION ALL CLASSES GROSS CLASS A GROSS RATE COMPLETIONS RATE RENTAL RATE* RENTAL RATE* CBD 8,630,127 11.3% 11.0% N/A 40,985 17,470 3,497 19,811 $38.50 $42.16

Central 998,679 17.2% 16.6% N/A 0 0 (4,567) (11,421) $31.52 $32.54 Far Northwest 12,413,074 15.4% 15.3% N/A 0 0 50,554 56,840 $27.42 $27.97 North Central 2,485,635 17.4% 17.4% N/A 0 0 (15,473) (15,473) $20.58 $24.82 Northeast 1,994,845 11.5% 11.5% N/A 0 0 10,537 10,537 $17.43 N/A Northwest 3,950,337 12.8% 12.8% N/A 0 0 (23,620) (23,620) $23.14 $27.95 South Central 2,103,594 4.9% 4.9% N/A 0 0 10,377 10,377 $22.11 N/A Southeast 992,420 25.1% 25.1% N/A 0 0 (236) (236) $14.20 $23.94 Southwest 8,998,604 8.4% 7.8% N/A 86,677 0 123,611 114,888 $29.38 $31.14 Round Rock 1,112,135 11.8% 11.7% N/A 0 0 56,042 56,042 $20.12 $21.86 Suburbs 35,049,323 12.8% 12.6% N/A 86,677 0 207,225 197,934 $25.15 $28.54 TOTALS 43,679,450 12.5% 12.3% N/A 127,662 17,470 210,722 217,745 $27.54 $31.14 * RENTAL RATES REFLECT ASKING $PSF/YEAR

MARKET HIGHLIGHTS Significant Q1 2013 Lease Transactions SUBMARKET TENANT BUILDING CLASS SQUARE FEET Research Park Plaza IV FNW HomeAway A 30,606

Amber Oaks H FNW Office Depot (expansion) A 24,724 Austin Centre CBD LIN Media A 23,931

Significant Q1 2013 Sale Transactions SUBMARKET BUYER PURCHASE PRICE / $PSF SQUARE FEET AMD Lone Star Campus SW Spear Street Capital $164,000,000/ $189 865,832 Thomas Properties Group Suburban Portfolio NW KBS $75,900,000 / $145 523,493 Wereldhave Austin Office Portfolio NW/SW Lone Star Funds $88,840,000/ $211 420,218

Significant Q1 2013 Construction Completions SUBMARKET MAJOR TENANT COMPLETION DATE BUILDING SQUARE FEET 405 N. Lamar CBD N/A Q1 2013 17,470

Significant Projects Under Construction SUBMARKET MAJOR TENANT COMPLETION DATE BUILDING SQUARE FEET Hill Country Galleria Bldg. Q SW N/A Q3 2013 53,453 311 Bowie CBD N/A Q1 2015 40,985 9225 Bee Caves Bldg. E SW N/A Q3 2013 33,224

* RENEWAL- NOT INCLUDED IN LEASING ACTIVITY STATISTICS * BUILDING SQUARE FOOTAGE INDICATES OFFICE SQUARE FOOTAGE ONLY

The market terms and definitions in this report are based on NAIOP standards. No Oxford Commercial For more information, contact: warranty or representation, express or implied, is made to the accuracy or completeness 2 200 W. Cesar Chavez, Suite 250 Holliday Hinckley, Research Director of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special Austin, TX 78701 512 637 5512 listing conditions imposed by our principals. www.oxfordcommercial.com [email protected] © 2013 Cushman & Wakefield, Inc. All rights reserved.

Industrial MARKETWATCH

______MARKETWATCH

Oce MARKETWATCH

Multifamily AUSTIN OFFICE MARKE1st QUARTER.2013TWATCH

Retail RECENT OFFICE LEASES OFFICE LEASE STATISTICS

 CBD :: Cirrus Logic (Expansion) 25.0% $32.00 MARKETWVacancyATCH (%) 18,438 sf at 300 West Sixth Street Gross Rent PSF ($) 20.0% ______ Southwest :: Fiserv $28.00 25,384 sf at Barton Oaks Plaza III 15.0%

 North :: Schlotzsky’s Inc. $24.00 13,505 sf at Offices at the Domain 10.0% MARKETWATCH  Far Northwest :: Meyertons, Hood, Kivlin, et. al. 22,541 sf at Cityview 2 $20.00 Economy 5.0%

RECENT OFFICE SALES 0.0% $16.00  Southwest :: 7000 West @ Lantana I & II MARKETWATCH Two Value Office Buildings Totaling 138,336 sf Buyer: Brandywine Realty / Seller: Blackstone/EOP All Austin Office Buildings larger than 25,000 SF excluding government buildings, medical and user campuses.

OFFICE LEASE STATISTICS BY SUBMARKET 1Q13 Gross No. of Total Direct Direct Total Total 1Q13 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 10,187,117 1,048,111 89.7% 1,109,020 89.1% (19,918) 278,432 $26.54 $19.68 N/A $25.59 Central & West Central 58 3,579,441 450,477 87.4% 469,395 86.9% (57,490) 47,930 $22.04 $16.43 $11.09 $19.67 North 46 4,652,599 550,223 88.2% 557,977 88.0% 27,181 205,199 $19.43 $13.38 N/A $14.70 Northeast & East 47 3,308,406 628,381 81.0% 636,381 80.8% (7,346) 7,431 N/A $14.03 $8.96 $11.16 Northwest & Far Northwest 200 15,881,748 2,172,767 86.3% 2,256,602 85.8% 89,249 572,982 $18.65 $16.26 N/A $18.04 Round Rock & Cedar Park 17 1,234,882 226,553 81.7% 233,329 81.1% 67,987 80,287 $16.50 $13.71 N/A $14.39 South 32 2,067,162 130,585 93.7% 136,273 93.4% 3,728 23,260 N/A $17.82 $14.50 $17.10 Southeast 14 1,243,078 455,485 63.4% 455,485 63.4% 6,694 8,173 N/A $13.00 N/A $13.00 Southwest 108 8,395,552 843,611 90.0% 867,896 89.7% 91,343 364,943 $20.73 $16.32 $10.00 $19.13 TOTAL 583 50,549,985 6,506,193 87.1% 6,722,358 86.7% 201,428 1,588,637 $21.26 $15.41 $9.91 $19.43 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 Trailing 12 Last Quarter Lake 183 Travis 620 1Q13 290 Months (4Q12) Months (4Q12) 2222 NW NE Volume ($ Mil) $1,554.5 $277.0 $295.8 $79,951.4 $30,818.0 N

290 No. of Properties 57 20 10 3,211 1,135 360 2244 WC E Total SF 8,658,590 1,781,957 1,796,098 414,684,804 157,694,293 L1 C 183 969 SW CBD

71 Average Price/SF $188 $216 N/A $217 $232 130 290 71 SE 973 290 1826

275 Average Cap Rate (Yield) N/A N/A N/A 7.2% 7.0% 183 S 71 45 Source: Real Capital Analytics

1826

45

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 Brandon Lester, Assoc. Vice President Development & Investment Sales Investment Sales - Multifamily Agency Leasing & Tenant Advisory 512.314.3572 512.314.5203 512.314.3576 [email protected] [email protected] [email protected]

Hale Umstattd, SVP | Managing Director Mike Brown, Senior Vice President Josh Delk, Associate Vice President Investment Sales & Agency Leasing Agency Leasing Development & Investment Sales 512.314.3551 512.314.3552 512.314.3557 [email protected] [email protected] [email protected]

Craig Hutchens, Senior Vice President Britt Reed, Senior Vice President Will Stewart, Senior Associate Structured Finance & Capital Markets Tenant Advisory & Agency Leasing Agency Leasing & Tenant Advisory 512.314.3555 512.314.3577 512.314.3574 [email protected] [email protected] [email protected]

Leah Gallagher, Managing Director Greg Johnson, Vice President Robert Gaston, Exec. Vice President Investment Sales Agency Leasing Central Texas 512.314.3571 512.314.3570 512.314.3554 [email protected] [email protected] [email protected]

Jeff Rogers, Managing Director Luke Wheeler, Vice President Karen Judson, Vice President Investment Sales - Multifamily Agency Leasing & Tenant Advisory Marketing & Research 512.314.5207 512.314.3553 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.

901 S. MoPac Expwy  Suite 4-250  Austin, Texas 78746  512.328.5600  www.transwestern.net/austin

1st Quarter 2013 OFFICE $250 Market Highlights

 The Austin Office Market has continued to grow showing 223,653 sf of positive absorption for the first quarter 2013.  The first quarter survey of approximately 41.4 million square feet of multi-tenant office space revealed that the citywide direct vacancy rate decreased to 12.6% - down slightly compared to 13.1% last quarter.  Leasing activity continued to be strong as several deals signed in the first quarter will commence in the second or third quarter 2013.  The majority of the leasing activity took place in Class A & B buildings in the Northwest, Southwest & CBD sub- markets.

Direct Available Quarterly Net YTD Net # of Total Available Total Vacant Total Direct Vacant Inventory (SF) Vacancy Sublease Absorption Absorption Bldgs (SF) (SF) Vacancy (SF) Rate (%) (SF) (SF) (SF)

A 178 22,256,689 3,824,417 2,872,156 12.9% 2,806,413 12.6% 209,196 103,630 103,630 B 397 17,264,519 2,887,017 2,163,228 12.5% 2,145,895 12.4% 66,733 114,176 114,176 C 83 1,926,183 284,203 251,706 13.1% 251,706 13.1% 0 5,847 5,847 Grand Total 658 41,447,391 6,995,637 5,287,090 12.8% 5,204,014 12.6% 275,929 223,653 223,653

Historical Vacancy & Net Absorption 800,000 16.0% 700,000 15.0% 600,000 500,000 14.0% 400,000 300,000 13.0% 200,000 12.0% 100,000 Vacancy Rate (%) Vacancy

Net Absorption (SF) Absorption Net 0 11.0% -100,000 -200,000 10.0% 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1

1Q 2013 Market Trends © 2013 by Xceligent, Inc. All Rights Reserved

Market Snapshot

Total Direct Available Quarterly Net YTD Net # of Inventory Total Total Direct Available Vacancy Sublease Absorption Absorption Bldgs (SF) Vacant (SF) Vacancy Vacant (SF) (SF) Rate (%) (SF) (SF) (SF) Northeast 27 1,866,972 295,891 288,702 15.5% 288,702 15.5% 0 2,886 2,886 A 1 320,597 0 0 0.0% 0 0.0% 0 0 0 B 22 1,385,033 247,775 240,586 17.4% 240,586 17.4% 0 (1,914) (1,914) C 4 161,342 48,116 48,116 29.8% 48,116 29.8% 0 4,800 4,800 Northwest 203 12,824,184 1,895,580 1,457,180 11.4% 1,445,718 11.3% 75,741 60,222 60,222

A 84 8,027,897 1,253,140 968,015 12.1% 959,358 12.0% 52,174 16,564 16,564 B 111 4,550,594 624,234 470,959 10.3% 468,154 10.3% 23,567 35,237 35,237 C 8 245,693 18,206 18,206 7.4% 18,206 7.4% 0 8,421 8,421 Southeast 15 1,039,950 202,305 168,087 16.2% 163,188 15.7% 4,899 (6,628) (6,628) A 2 320,877 128,040 122,496 38.2% 117,597 36.6% 4,899 (14,551) (14,551) B 11 633,126 59,791 44,113 7.0% 44,113 7.0% 0 7,557 7,557 C 2 85,947 14,474 1,478 1.7% 1,478 1.7% 0 366 366 Southwest 160 8,190,160 1,017,932 755,307 9.2% 701,820 8.6% 74,127 155,966 155,966 A 47 5,224,132 615,709 425,000 8.1% 382,820 7.3% 60,706 87,215 87,215 B 106 2,869,374 370,322 315,666 11.0% 304,359 10.6% 13,421 72,695 72,695 C 7 96,654 31,901 14,641 15.1% 14,641 15.1% 0 (3,944) (3,944) Central 39 2,230,593 415,609 358,989 16.1% 358,989 16.1% 17,332 (2,736) (2,736) A 7 856,605 154,724 143,427 16.7% 143,427 16.7% 6,854 17,800 17,800 B 29 1,283,059 257,793 212,470 16.6% 212,470 16.6% 10,478 (20,536) (20,536) C 3 90,929 3,092 3,092 3.4% 3,092 3.4% 0 0 0 CBD 55 8,189,844 1,342,469 918,639 11.2% 907,227 11.1% 88,763 (2,280) (2,280) A 13 4,759,484 876,642 545,037 11.5% 535,030 11.2% 84,563 (32,962) (32,962) B 24 2,736,696 370,606 278,341 10.2% 276,936 10.1% 4,200 34,575 34,575 C 18 693,664 95,221 95,261 13.7% 95,261 13.7% 0 (3,893) (3,893) South 32 1,533,096 122,741 104,008 6.8% 104,008 6.8% 7,744 (15,608) (15,608) A 2 238,483 7,836 0 0.0% 0 0.0% 0 0 0 B 18 944,787 97,580 86,683 9.2% 86,683 9.2% 7,744 (15,056) (15,056) C 12 349,826 17,325 17,325 5.0% 17,325 5.0% 0 (552) (552) Far 69 3,807,226 1,205,732 730,940 19.2% 730,940 19.2% 0 13,631 13,631 Northwest A 20 2,301,568 719,059 598,914 26.0% 598,914 26.0% 0 14,526 14,526 B 24 1,368,401 459,529 107,163 7.8% 107,163 7.8% 0 (895) (895) C 25 137,257 27,144 24,863 18.1% 24,863 18.1% 0 0 0 North 18 1,063,227 347,212 370,756 34.9% 370,756 34.9% 0 20,355 20,355 A 2 207,046 69,267 69,267 33.5% 69,267 33.5% 0 15,038 15,038 B 14 821,422 249,727 273,271 33.3% 273,271 33.3% 0 4,162 4,162 C 2 34,759 28,218 28,218 81.2% 28,218 81.2% 0 1,155 1,155 Round 40 702,139 150,166 134,482 19.2% 132,666 18.9% 7,323 (2,155) (2,155) Rock B 38 672,027 149,660 133,976 19.9% 132,160 19.7% 7,323 (1,649) (1,649) C 2 30,112 506 506 1.7% 506 1.7% 0 (506) (506)

Grand Total 658 41,447,391 6,995,637 5,287,090 12.8% 5,204,014 12.6% 275,929 223,653 223,653

1Q 2013 Market Trends © 2013 by Xceligent, Inc. All Rights Reserved

Historical Snapshot

Direct Vacancy Rate % Asking Direct Lease Rate (FSG) 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 CBD 14.1% 12.8% 12.2% 11.0% 11.1% $29.58 $30.43 $31.04 $31.63 $32.60 A 13.8% 12.8% 12.4% 10.5% 11.2% $37.41 $38.06 $38.78 $39.73 $40.18 B 13.3% 11.3% 11.5% 11.2% 10.1% $29.07 $29.61 $29.91 $30.15 $31.00 C 17.9% 17.3% 14.1% 13.2% 13.7% $18.42 $20.52 $21.56 $22.07 $22.44 Central 14.9% 15.3% 14.6% 16.0% 16.1% $22.02 $21.51 $21.24 $22.51 $22.56 A 20.7% 19.0% 18.9% 18.8% 16.7% $29.91 $27.58 $29.28 $27.83 $28.60 B 11.7% 13.5% 12.7% 15.0% 16.6% $21.16 $20.70 $20.10 $21.55 $21.65 C 5.4% 4.5% 1.7% 3.4% 3.4% $16.25 $16.25 $16.50 $16.50 $16.50 Far Northwest 26.8% 26.3% 22.0% 19.2% 19.2% $21.96 $21.35 $21.08 $22.32 $23.44 A 38.1% 37.5% 30.5% 26.1% 26.0% $25.98 $25.96 $26.09 $26.20 $27.22 B 8.9% 8.1% 8.1% 7.8% 7.8% $18.70 $18.74 $18.61 $19.55 $20.45 C 15.8% 18.7% 19.6% 18.1% 18.1% $12.67 $12.98 $12.98 $13.19 $13.19 North 27.1% 28.5% 29.5% 36.8% 34.9% $19.37 $19.17 $17.70 $17.27 $19.22 A 35.4% 35.4% 41.5% 40.7% 33.5% $28.40 $28.40 $31.24 $32.24 $32.24 B 26.0% 27.8% 27.1% 33.8% 33.3% $17.84 $17.91 $17.62 $16.85 $18.96 C 4.5% 4.5% 13.3% 84.5% 81.2% $12.00 $12.00 $11.25 $11.25 $13.50 Northeast 17.1% 20.9% 20.1% 15.6% 15.5% $15.82 $15.37 $16.13 $15.50 $15.69 A 0.0% 0.0% 0.0% 0.0% 0.0% $0.00 $0.00 $24.00 $0.00 $0.00 B 15.6% 19.8% 23.3% 17.2% 17.4% $16.30 $15.89 $16.12 $16.09 $16.00 C 32.8% 32.8% 32.8% 32.8% 29.8% $12.25 $12.25 $12.25 $12.25 $12.50 Northwest 13.2% 13.7% 12.3% 11.7% 11.3% $23.58 $23.84 $24.06 $24.26 $24.77 A 12.9% 13.9% 12.7% 12.2% 12.0% $26.80 $26.95 $27.43 $27.91 $28.30 B 13.9% 13.5% 11.7% 10.8% 10.3% $21.49 $21.60 $21.85 $21.87 $22.29 C 8.0% 11.1% 11.5% 10.8% 7.4% $18.30 $19.30 $18.71 $18.71 $18.95 Round Rock 16.9% 17.2% 19.1% 18.8% 18.9% $20.00 $20.14 $19.95 $20.37 $20.70 A 0.0% 0.0% 0.0% 0.0% 0.0% $0.00 $0.00 $0.00 $0.00 $0.00 B 17.7% 18.0% 20.0% 19.7% 19.7% $20.00 $20.14 $19.95 $20.37 $20.78 C 0.0% 0.0% 0.0% 0.0% 1.7% $0.00 $0.00 $0.00 $0.00 $19.00 South 8.4% 8.3% 6.7% 5.8% 6.8% $21.14 $21.51 $21.78 $22.56 $21.95 A 10.5% 10.5% 0.0% 0.0% 0.0% $28.56 $28.56 $0.00 $32.31 $33.39 B 8.5% 8.3% 9.1% 7.6% 9.2% $22.10 $22.00 $23.06 $23.18 $22.43 C 6.8% 6.7% 4.8% 4.8% 5.0% $17.83 $19.12 $19.24 $19.24 $19.23 Southeast 17.7% 16.9% 15.2% 15.1% 15.7% $17.48 $17.72 $18.50 $16.12 $14.96 A 37.0% 36.8% 33.7% 32.1% 36.6% $20.25 $20.75 $23.00 $23.00 $23.00 B 9.0% 8.2% 7.7% 8.2% 7.0% $17.15 $17.57 $18.40 $15.37 $13.44 C 9.6% 6.2% 1.5% 2.1% 1.7% $14.50 $15.25 $14.50 $14.50 $14.50 Southwest 10.3% 10.4% 12.6% 10.6% 8.6% $23.78 $24.35 $25.10 $25.43 $25.59 A 6.8% 7.0% 10.4% 9.1% 7.3% $28.35 $28.75 $29.98 $30.17 $30.77 B 16.5% 16.6% 16.6% 13.3% 10.6% $22.85 $23.23 $23.44 $23.75 $23.76 C 14.0% 11.9% 11.9% 11.1% 15.1% $14.70 $12.52 $14.51 $16.81 $17.51 Grand Total 14.7% 14.8% 14.1% 13.1% 12.6% $22.98 $23.25 $23.56 $23.86 $24.31

1Q 2013 Market Trends © 2013 by Xceligent, Inc. All Rights Reserved

Lease Rates

Asking Lease Rate Range by Class (FSG) $60.00

$50.00 $50.25

$40.00 $39.84

$30.00 $29.79 $29.00

$22.22 $20.00 $21.00 $18.11 Asking Asking Lease Rate (FSG) $10.00 $7.80 $7.55

$0.00 A B C

Largest Changes in Occupancy

SF Occupied Building Property Name Company Name Market or Vacated Class

Broadcomm, Drilling Info, Bowman The Terrace VI 83425 Southwest A & Brook

Research Park Plaza III 29980 Visa Northwest A

SHW Group, Agile Assets, Dr. Var- 3001 Bee Caves Rd 27101 Southwest B ga

Wild Basin Atrium Bldg A 17759 NSS Labs Southwest B

University Park 15691 CTRMA Central A

Hance Scarborough LLP, Fish & One Congress Plaza -27912 CBD A Richardson

7500 Rialto Blvd Bldg 2 -36339 NXP Semi-Conductors Southwest A

Research Tech Center Bldg 5 -39237 Motive (downsized) Northwest A

100 Congress Ave -42934 Locke Lord CBD A

1Q 2013 Market Trends © 2013 by Xceligent, Inc. All Rights Reserved

Available Space by Size

Largest Blocks of Available Space

14 12 10 8 6 4 2 0

100K+ 50-100K 25-50K

Available Space Historical Comparisons Quarter 100K+ 50-100K 25-50K 2012 Q1 11 23 45

2012 Q2 14 18 51

2012 Q3 13 18 47

2012 Q4 11 19 44

2013 Q1 11 17 45

Notable Transactions

SF Leased Building Lease/ Property Name Company Name Market or Sold Class Sale

The Terrace VI 31425 Bowman & Brook Southwest A Lease

Research Park Plaza III 29980 Visa Northwest A Lease

The Terrace VI 27000 Drilling Info (Exp) Southwest A Lease

The Terrace VI 25000 Broadcom Southwest A Lease

Wild Basin Atrium Bldg A 17759 NSS Labs Southwest B Lease

University Park 15691 CTRMA Central A Lease

Offices at the Domain Bldg 1 15038 Shlotszky's North A Lease

Aspen Lake 14327 Regus Far Northwest A Lease

1Q 2013 Market Trends © 2013 by Xceligent, Inc. All Rights Reserved Market

Terminology Total Building SF—All single & multi tenant office buildings above 20,000 SF excluding medical, government and owner occupied

Class A—Most prestigious buildings competing for premier office users with rents above average for the area. Buildings have high quality standard finishes, state of the art systems, exceptional accessibility and a definite market presence.

Class B—Buildings competing for a wide range of users with average rents. Building finishes are fair to good for the area. Building finishes are fair to good for the area and systems are adequate but the building does not compete with Class A at the same price.

Class C—Buildings competing for tenants requiring functional space at rents below the average for the area.

Available SF—Space currently being marketed for lease or sublease Vacant SF—Space currently unoccupied in the market for lease either directly with the landlord or via a sublease

Qtr Absorption—The net change in physically occupied space between the current quarter and previous quarter

Non Weighted Average Direct Lease Rate— The strict average of all direct lease rates expressed as a full service number. Non full service rates (such as NNN) have been calculated up to reflect the full service rate

1Q 2013 Market Trends © 2013 by Xceligent, Inc. All Rights Reserved

Vacancy & Absorption Trends

Vacancy Rate by Class Net Absorption by Class 13.2% 120,000 114,176 13.1% 13.1% 103,630 100,000 13.0% 12.9% 12.9% 80,000 12.8% 12.7% 60,000 12.6% 12.5% 12.5% 40,000 Vacancy (%) Rate Vacancy

12.4% (SF) Absorption Net 20,000 12.3% 5,847 12.2% 0 A B C A B C

Vacancy Rate by Quarter Net Absorption by Quarter 17% 800,000 16% 15.1% 15.3% 696,774 15% 14.4% 700,000 13.3% 14% 12.8% 600,000 13% 12% 500,000 442,485 11% 10% 400,000 9% 8% 300,000 220,426 223,653 7% 200,000 6% 5% 100,000 4% Vacancy (%) Rate Vacancy 0 3% (SF) Absorption Net 2% -100,000 1% 0% -200,000 -112,711 2012 2012 2012 2012 2013 2012 2012 2012 2012 2013 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1

1Q 2013 Market Trends © 2013 by Xceligent, Inc. All Rights Reserved

Vacancy & Absorption Trends

Vacancy Rate by Class 16% 13.3% 13.7% 14% 13.0% 12.7% 12% 11.5% 10.2% 10% 8% 6% 4% Vacancy Vacancy Rate (%) 2% 0% A B C CBD Suburban

Net Absorption by Class 160,000 136,592 140,000 120,000 100,000 79,601 80,000 60,000 34,575 40,000 9,740 20,000 - (20,000) (3,893) Net Absorption Net Absorption (SF) (40,000) (32,962) (60,000) A B C CBD Suburban

This information has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy For more information, please contact Doug Swanson at 210-288-0218 or [email protected].

1Q 2013 Market Trends © 2013 by Xceligent, Inc. All Rights Reserved The CoStar Office Report FIRST QUARTER 2013 Austin Office Market FIRST QUARTER 2013 – AUSTIN Austin Office Market

Table of Contents

Table of Contents ...... A Methodology...... B Terms & Definitions...... C Market Highlights & Overview...... 1 CoStar Markets...... 4 Inventory & Development Analysis...... 5 Inventory & Development Analysis Select Top Under Construction Properties Select Top Deliveries Figures at a Glance ...... 8 Figures at a Glance by Class & Market Figures at a Glance Grouped by CBD vs Suburban Historical Figures at a Glance Leasing Activity Analysis ...... 12 Select Top Lease Transactions Sales Activity Analysis ...... 14 Sales Activity Analysis Select Top Sales Transactions Analysis of Individual CoStar Submarket Clusters ...... 16 Bastrop County Market Caldwell County Market CBD Market Cedar Park Market Central Market East Market Far Northwest Market North Market Northeast Market Northwest Market Round Rock Market South Market Southeast Market Southwest Market West Central Market

©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT A AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market

Methodology

The CoStar Office Report, unless specifically stated otherwise, calculates office statistics using CoStar Group’s entire database of existing and under construction office buildings in each metropolitan area. Included are office, office condominium, office loft, office medical, all classes and all sizes, and both multi-tenant and single-tenant buildings, including owner-occupied buildings. CoStar Group's national database includes approximately 80.7 billion square feet of coverage in 3.5 million properties. All rental rates reported in the CoStar Office Report have been converted to a Full Service equivalent rental rate.

For information on subscribing to CoStar’s other products and services, please contact us at 1-877-7COSTAR, or visit our web site at www.costar.com

© Copyright 2013 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of the information contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness or completeness of the information. The publication is provided ‘as is’ and CoStar expressly disclaims any guarantees, representations or warranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

CoStar Group, Inc. 1331 L ST NW • Washington, DC 20005• (800) 204-5960 • www.costar.com • NASDAQ: CSGP

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Terms & Definitions

Availability Rate: The ratio of available space to total rentable Deliveries: Buildings that complete construction during a specified space, calculated by dividing the total available square feet by the period of time. In order for space to be considered delivered, a total rentable square feet. certificate of occupancy must have been issued for the property. Available Space: The total amount of space that is currently Delivery Date: The date a building completes construction and being marketed as available for lease in a given time period. It receives a certificate of occupancy. includes any space that is available, regardless of whether the Developer: The company, entity or individual that transforms raw space is vacant, occupied, available for sublease, or available at land to improved property by use of labor, capital and entrepre- a future date. neurial efforts. Build-to-Suit: A term describing a particular property, developed Direct Space: Space that is being offered for lease directly from specifically for a certain tenant to occupy, with structural features, the landlord or owner of a building, as opposed to space being systems, or improvement work designed specifically for the needs offered in a building by another tenant (or broker of a tenant) of that tenant. A build-to-suit can be leased or owned by the ten- trying to sublet a space that has already been leased. ant. In a leased build-to-suit, a tenant will usually have a long term lease on the space. Existing Inventory: The square footage of buildings that have received a certificate of occupancy and are able to be occupied Buyer: The individual, group, company, or entity that has pur- by tenants. It does not include space in buildings that are either chased a commercial real estate asset. planned, under construction or under renovation. Cap Rate: Short for capitalization rate. The Cap Rate is a calcula- Flex Building: A type of building designed to be versatile, which tion that reflects the relationship between one year’s net operating may be used in combination with office (corporate headquarters), income and the current market value of a particular property. research and development, quasi-retail sales, and including but The Cap Rate is calculated by dividing the annual net operating not limited to industrial, warehouse, and distribution uses. A typi- income by the sales price (or asking sales price). cal flex building will be one or two stories with at least half of the CBD: Abbreviation for Central Business District. (See also: rentable area being used as office space, have ceiling heights of 16 Central Business District) feet or less, and have some type of drive-in door, even though the door may be glassed in or sealed off. Central Business District: The designations of Central Business District (CBD) and Suburban refer to a particular geographic area Full Service Rental Rate: Rental rates that include all operating within a metropolitan statistical area (MSA) describing the level expenses such as utilities, electricity, janitorial services, taxes and of real estate development found there. The CBD is characterized insurance. by a high density, well organized core within the largest city of a Gross Absorption: The total change in occupied space over a given MSA. given period of time, counting space that is occupied but not Class A: A classification used to describe buildings that generally space that is vacated by tenants. Gross absorption differs from qualify as extremely desirable investment-grade properties and leasing Activity, which is the sum of all space leased over a certain command the highest rents or sale prices compared to other period of time. Unless otherwise noted Gross Absorption includes buildings in the same market. Such buildings are well located direct and sublease space. and provide efficient tenant layouts as well as high quality, and in Growth in Inventory: The change in size of the existing square some buildings, one-of-a-kind floor plans. They can be an archi- footage in a given area over a given period of time, generally due tectural or historical landmark designed by prominent architects. to the construction of new buildings. These buildings contain a modern mechanical system, and have above-average maintenance and management as well as the best Industrial Building: A type of building adapted for such uses as quality materials and workmanship in their trim and interior fit- the assemblage, processing, and/or manufacturing of products tings. They are generally the most attractive and eagerly sought from raw materials or fabricated parts. Additional uses include by investors willing to pay a premium for quality. warehousing, distribution, and maintenance facilities. The pri- mary purpose of the space is for storing, producing, assembling, Class B: A classification used to describe buildings that generally or distributing product. qualify as a more speculative investment, and as such, command lower rents or sale prices compared to Class A properties. Such Landlord Rep: (Landlord Representative) In a typical lease trans- buildings offer utilitarian space without special attractions, and action between an owner/landlord and tenant, the broker that have ordinary design, if new or fairly new; good to excellent represents the interests of the owner/landlord is referred to as the design if an older non-landmark building. These buildings typical- Landlord Rep. ly have average to good maintenance, management and tenants. Leased Space: All the space that has a financial lease obligation. They are less appealing to tenants than Class A properties, and It includes all leased space, regardless of whether the space is may be deficient in a number of respects including floor plans, currently occupied by a tenant. Leased space also includes space condition and facilities. They lack prestige and must depend being offered for sublease. chiefly on a lower price to attract tenants and investors. Leasing Activity: The volume of square footage that is commit- Class C: A classification used to describe buildings that gener- ted to and signed under a lease obligation for a specific building ally qualify as no-frills, older buildings that offer basic space and or market in a given period of time. It includes direct leases, command lower rents or sale prices compared to other buildings subleases and renewals of existing leases. It also includes any in the same market. Such buildings typically have below-average pre-leasing activity in planned, under construction, or under maintenance and management, and could have mixed or low renovation buildings. tenant prestige, inferior elevators, and/or mechanical/electrical systems. These buildings lack prestige and must depend chiefly Market: Geographic boundaries that serve to delineate core areas on a lower price to attract tenants and investors. that are competitive with each other and constitute a generally accepted primary competitive set of areas. Markets are building- Construction Starts: Buildings that began construction during a type specific, and are non-overlapping contiguous geographic specific period of time. (See also: Deliveries) designations having a cumulative sum that matches the boundar- Contiguous Blocks of Space: Space within a building that is, or is ies of the entire Region (See also: Region). Markets can be further able to be joined together into a single contiguous space. subdivided into Submarkets. (See also: Submarkets)

B THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT C AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market

Multi-Tenant: Buildings that house more than one tenant at a Seller: The individual, group, company, or entity that sells a par- given time. Usually, multi-tenant buildings were designed and ticular commercial real estate asset. built to accommodate many different floor plans and designs for SF: Abbreviation for Square Feet. different tenant needs. (See also: Tenancy). Single-Tenant: Buildings that are occupied, or intended to be Net Absorption: The net change in occupied space over a given occupied by a single tenant. (See also: Build-to-suit and Tenancy) period of time. Unless otherwise noted Net Absorption includes direct and sublease space. Sublease Space: Space that has been leased by a tenant and is being offered for lease back to the market by the tenant with Net Rental Rate: A rental rate that excludes certain expenses that the lease obligation. Sublease space is sometimes referred to as a tenant could incur in occupying office space. Such expenses sublet space. are expected to be paid directly by the tenant and may include janitorial costs, electricity, utilities, taxes, insurance and other Submarkets: Specific geographic boundaries that serve to delin- related costs. eate a core group of buildings that are competitive with each other and constitute a generally accepted primary competitive New Space: Sometimes called first generation space, refers to set, or peer group. Submarkets are building type specific (office, space that has never been occupied and/or leased by a tenant. industrial, retail, etc.), with distinct boundaries dependent on Occupied Space: Space that is physically occupied by a tenant. different factors relevant to each building type. Submarkets are It does not include leased space that is not currently occupied non-overlapping, contiguous geographic designations having a by a tenant. cumulative sum that matches the boundaries of the Market they are located within (See also: Market). Office Building: A type of commercial building used exclusively or primarily for office use (business), as opposed to manufactur- Suburban: The Suburban and Central Business District (CBD) ing, warehousing, or other uses. Office buildings may sometimes designations refer to a particular geographic area within a metro- have other associated uses within part of the building, i.e., retail politan statistical area (MSA). Suburban is defined as including all sales, financial, or restaurant, usually on the ground floor. office inventory not located in the CBD. (See also: CBD) Owner: The company, entity, or individual that holds title on a Tenancy: A term used to indicate whether or not a building is given building or property. occupied by multiple tenants (See also: Multi-tenant) or a single tenant. (See also: Single-tenant) Planned/Proposed: The status of a building that has been announced for future development but not yet started Tenant Rep: Tenant Rep stands for Tenant Representative. In a construction. typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the tenant is referred to Preleased Space: The amount of space in a building that has been as a Tenant Rep. leased prior to its construction completion date, or certificate of occupancy date. Time On Market: A measure of how long a currently available space has been marketed for lease, regardless of whether it is Price/SF: Calculated by dividing the price of a building (either vacant or occupied. sales price or asking sales price) by the Rentable Building Area (RBA). Under Construction: The status of a building that is in the process of being developed, assembled, built or constructed. A building is Property Manager: The company and/or person responsible for considered to be under construction after it has begun construc- the day-to-day operations of a building, such as cleaning, trash tion and until it receives a certificate of occupancy. removal, etc. The property manager also makes sure that the vari- ous systems within the building, such as the elevators, HVAC, and Vacancy Rate: A measurement expressed as a percentage of the electrical systems, are functioning properly. total amount of physically vacant space divided by the total amount of existing inventory. Under construction space generally Quoted Rental Rate: The asking rate per square foot for a par- is not included in vacancy calculations. ticular building or unit of space by a broker or property owner. Quoted rental rates may differ from the actual rates paid by Vacant Space: Space that is not currently occupied by a tenant, tenants following the negotiation of all terms and conditions in regardless of any lease obligation that may be on the space. a specific lease. Vacant space could be space that is either available or not avail- able. For example, sublease space that is currently being paid for RBA: Abbreviation for Rentable Building Area. (See also: by a tenant but not occupied by that tenant, would be considered Rentable Building Area) vacant space. Likewise, space that has been leased but not yet Region: Core areas containing a large population nucleus, that occupied because of finish work being done, would also be con- together with adjacent communities have a high degree of eco- sidered vacant space. nomic and social integration. Regions are further divided into Weighted Average Rental Rate: Rental rates that are calculated by market areas, called Markets. (See also: Markets) factoring in, or weighting, the square footage associated with each Relet Space: Sometimes called second generation or direct space, particular rental rate. This has the effect of causing rental rates refers to existing space that has previously been occupied by on larger spaces to affect the average more than that of smaller another tenant. spaces. The weighted average rental rate is calculated by taking Rentable Building Area: (RBA) The total square footage of a the ratio of the square footage associated with the rental rate on building that can be occupied by, or assigned to a tenant for the each individual available space to the square footage associated purpose of determining a tenant’s rental obligation. Generally with rental rates on all available spaces, multiplying the rental rate RBA includes a percentage of common areas including all hall- by that ratio, and then adding together all the resulting numbers. ways, main lobbies, bathrooms, and telephone closets. Unless specifically specified otherwise, rental rate averages include both Direct and Sublet available spaces. Rental Rates: The annual costs of occupancy for a particular space quoted on a per square foot basis. Year Built: The year in which a building completed construction and was issued a certificate of occupancy. Sales Price: The total dollar amount paid for a particular property at a particular point in time. YTD: Abbreviation for Year-to-Date. Describes statistics that are cumulative from the beginning of a calendar year through what- Sales Volume: The sum of sales prices for a given group of build- ever time period is being studied. ings in a given time period.

D THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 1 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market OVERVIEW Austin’s Vacancy Decreases to 10.1% Net Absorption Positive 187,928 SF in the Quarter

he Austin Office market ended the first quarter 2013 with positive 282,579 square feet in the fourth quarter 2012, negative a vacancy rate of 10.1%. The vacancy rate was down (63,303) in the third quarter 2012, and positive 114,672 in the T over the previous quarter, with net absorption totaling second quarter 2012. positive 187,928 square feet in the first quarter. Vacant sublease The Class-B office market recorded net absorption of space increased in the quarter, ending the quarter at 248,735 positive 39,445 square feet in the first quarter 2013, compared to square feet. Rental rates ended the first quarter at $26.36, an positive 618,798 square feet in the fourth quarter 2012, positive increase over the previous quarter. A total of three buildings 17,891 in the third quarter 2012, and positive 190,666 in the delivered to the market in the quarter totaling 21,129 square feet, second quarter 2012. with 394,721 square feet still under construction at the end of The Class-C office market recorded net absorption of the quarter. positive 52,167 square feet in the first quarter 2013 compared to negative (33,073) square feet in the fourth quarter 2012, negative Absorption (112,426) in the third quarter 2012, and positive 9,311 in the Net absorption for the overall Austin office market was pos- second quarter 2012. itive 187,928 square feet in the first quarter 2013. That compares Net absorption for Austin’s central business district was to positive 868,304 square feet in the fourth quarter 2012, nega- negative (15,751) square feet in the first quarter 2013. That com- tive (157,838) square feet in the third quarter 2012, and positive pares to positive 11,806 square feet in the fourth quarter 2012, 314,649 square feet in the second quarter 2012. positive 91,106 in the third quarter 2012, and positive 37,984 in Tenants moving out of large blocks of space in 2013 the second quarter 2012. include: Computer Sciences Corporation moving out of 35,977 Net absorption for the suburban markets was positive square feet at 200 W Cesar Chavez St; Vigil Games moving out 203,679 square feet in the first quarter 2013. That compares of 33,000 square feet at Four Points Centre Bldg 1; and Locke to positive 856,498 square feet in fourth quarter 2012, negative Lord Bissell & Liddell LLP moving out of 27,500 square feet at (248,944) in the third quarter 2012, and positive 276,665 in the 100 Congress Ave. second quarter 2012. Tenants moving into large blocks of space in 2013 include: Drilling Info, Inc. moving into 65,106 square feet at The Terrace Vacancy VI; SHI International Corp moving into 50,737 square feet at The office vacancy rate in the Austin market area decreased Barton Skyway I; and Bowman & Brooke moving into 24,000 to 10.1% at the end of the first quarter 2013. The vacancy rate square feet at The Terrace VI. was 10.3% at the end of the fourth quarter 2012, 11.2% at the The Class-A office market recorded net absorption of end of the third quarter 2012, and 10.9% at the end of the second positive 96,316 square feet in the first quarter 2013, compared to quarter 2012.

Vacancy Rates by Class 2000-2013

A B C Total Market

30%

25%

20%

15% VacancyRate 10%

5%

0% 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q

Source: CoStar Property®

D THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013Absorption COSTAR GROUP, INC. & Deliveries THE COSTAR OFFICE REPORTU.S. Vacancy Comparison 1 Past 7 Quarters Past 7 Quarters

Net Absorption Deliveries Austin United States 1.0 14.0% 0.87

0.8 0.71 0.72 12.0%

0.6 0.52 10.0%

0.4 0.31 8.0% 0.24 0.19 0.14 0.2 0.10 6.0% Millions SF

0.01 0.03 0.01 0.02 VacancyRate 0.0 4.0%

(0.2) 2.0% (0.16)

(0.4) 0.0% 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property• Source: CoStar Property• AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market OVERVIEW

Class-A projects reported a vacancy rate of 12.4% at the end third quarter 2012 and 315,666 square feet at the end of the of the first quarter 2013, 12.7% at the end of the fourth quarter second quarter 2012. 2012, 13.1% at the end of the third quarter 2012, and 12.7% at Austin’s Class-A projects reported vacant sublease space of the end of the second quarter 2012. 118,709 square feet at the end of first quarter 2013, up from the Class-B projects reported a vacancy rate of 10.0% at the end 62,843 square feet reported at the end of the fourth quarter 2012. of the first quarter 2013, 10.0% at the end of the fourth quarter There were 113,469 square feet of sublease space vacant at the 2012, 11.5% at the end of the third quarter 2012, and 11.5% at end of the third quarter 2012, and 175,860 square feet at the end the end of the second quarter 2012. of the second quarter 2012. Class-C projects reported a vacancy rate of 5.3% at the end Class-B projects reported vacant sublease space of 108,270 of the first quarter 2013, 5.7% at the end of fourth quarter 2012, square feet at the end of the first quarter 2013, up from the 6.4% at the end of the third quarter 2012, and 5.6% at the end 66,615 square feet reported at the end of the fourth quarter of the second quarter 2012. 2012. At the end of the third quarter 2012 there were 136,498 The overall vacancy rate in Austin’s central business dis- square feet, and at the end of the second quarter 2012 there were trict at the end of the first quarter 2013 increased to 8.8%. The 128,259 square feet vacant. vacancy rate was 8.7% at the end of the fourth quarter 2012, Class-C projects reported increased vacant sublease space 8.8% at the end of the third quarter 2012, and 9.4% at the end from the fourth quarter 2012 to the first quarter 2013. Sublease of the second quarter 2012. vacancy went from 12,413 square feet to 21,756 square feet dur- Vacancy Rates by Class 2000-2013 The vacancy rate in the suburban markets decreased to ing that time. There was 11,756 square feet at the end of the third

A B C10.3%Total in Marketthe first quarter 2013. The vacancy rate was 10.6% at quarter 2012, and 11,547 square feet at the end of the second the end of the fourth quarter 2012, 11.7% at the end of the third quarter 2012. 30% quarter 2012, and 11.2% at the end of the second quarter 2012. Sublease vacancy in Austin’s central business district stood at 61,185 square feet at the end of the first quarter 2013. It was 25% Largest Lease Signings 52,808 square feet at the end of the fourth quarter 2012, 52,733 The largest lease signings occurring in 2013 included: the square feet at the end of the third quarter 2012, and 72,437 20% 295,815-square-foot lease signed by Flextronics Global Services square feet at the end of the second quarter 2012. Texas at Buildings A, B, C, D, E, F, K, M, N, O in the Northwest Sublease vacancy in the suburban markets ended the first 15% market; the 23,931-square-foot deal signed by LIN Media at quarter 2013 at 187,550 square feet. At the end of the fourth

VacancyRate Austin Centre in the CBD market; and the 18,438-square-foot 10% quarter 2012 sublease vacancy was 89,063 square feet, was lease signed by Cirrus Logic Inc at 300 West Sixth in the CBD 208,990 square feet at the end of the third quarter 2012, and was market. 5% 243,229 square feet at the end of the second quarter 2012. Sublease Vacancy 0% Rental Rates The amount of vacant sublease space in the Austin market 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 The average quoted asking rental rate for available office 4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q increased2q 4q to2q 248,7354q 2q square4q feet2q by4q the2q end4q of the2q first4q quarter space, all classes, was $26.36 per square foot per year at the end 2013, from 141,871 square feet at the end of the fourth quarter Source: CoStar Property® of the first quarter 2013 in the Austin market area. This repre- 2012. There was 261,723 square feet vacant at the end of the sented a 2.5% increase in quoted rental rates from the end of Absorption & Deliveries U.S. Vacancy Comparison the fourth quarter 2012, when rents were reported at $25.72 per square foot. Past 7 Quarters Past 7 Quarters The average quoted rate within the Class-A sector was Net Absorption Deliveries Austin United States $31.62 at the end of the first quarter 2013, while Class-B rates 1.0 14.0% 0.87 stood at $22.15, and Class-C rates at $18.10. At the end of the 0.8 0.71 0.72 12.0% fourth quarter 2012, Class-A rates were $30.45 per square foot,

0.6 0.52 10.0% Class-B rates were $22.11, and Class-C rates were $18.51. The average quoted asking rental rate in Austin’s CBD was 0.4 0.31 8.0% $36.49 at the end of the first quarter 2013, and $24.49 in the 0.24 0.19 0.14 suburban markets. In the fourth quarter 2012, quoted rates were 0.2 0.10 6.0% Millions SF

0.01 0.03 0.01 0.02 VacancyRate $34.72 in the CBD and $24.23 in the suburbs. 0.0 4.0% Deliveries and Construction (0.2) 2.0% (0.16) During the first quarter 2013, three buildings totaling

(0.4) 0.0% 21,129 square feet were completed in the Austin market area. 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q This compares to six buildings totaling 239,816 square feet that

Source: CoStar Property• Source: CoStar Property•

2 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 3 Vacancy Rates by Class 2000-2013

A B C Total Market

30%

25%

20%

15% VacancyRate 10%

5%

AUSTIN – FIRST QUARTER 2013 0% FIRST QUARTER 2013 – AUSTIN 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 Austin Office Market Austin Office Market4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q OVERVIEW Source: CoStar Property®

were completed in the fourth quarter 2012, three buildings total- Absorption & Deliveries U.S. Vacancy Comparison ing 95,950 square feet completed in the third quarter 2012, and Past 7 Quarters Past 7 Quarters 139,493 square feet in nine buildings completed in the second Net Absorption Deliveries Austin United States quarter 2012. 1.0 14.0% There were 394,721 square feet of office space under con- 0.87 struction at the end of the first quarter 2013. 0.8 0.71 0.72 12.0%

Some of the notable 2013 deliveries include: River Place 0.6 0.52 10.0% Medical I, a 15,000-square-foot facility that delivered in first quarter 2013 and is now 70% occupied, and Lake Line Office 0.4 0.31 8.0% 0.24 0.19 Condos - Building 6, a 3,629-square-foot building that delivered 0.14 0.2 0.10 6.0% Millions SF

in first quarter 2013. 0.01 0.03 0.01 0.02 VacancyRate The largest projects underway at the end of first quarter 0.0 4.0%

2013 were Apple Campus - Phase I, an 88,000-square-foot build- (0.2) 2.0% (0.16) ing with 100% of its space pre-leased. (0.4) 0.0% Inventory 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Total office inventory in the Austin market area amounted to Source: CoStar Property• Source: CoStar Property• 83,112,263 square feet in 3,703 buildings as of the end of the first Total office building sales activity in 2012 was up compared quarter 2013. The Class-A office sector consisted of 30,294,839 to 2011. In the twelve months of 2012, the market saw 30 square feet in 210 projects. There were 1,610 Class-B buildings office sales transactions with a total volume of $1,644,526,804. totaling 38,485,995 square feet, and the Class-C sector consisted The price per square foot averaged $220.28. In the same twelve of 14,331,429 square feet in 1,883 buildings. Within the Office months of 2011, the market posted 15 transactions with a total market there were 165 owner-occupied buildings accounting for volume of $312,715,605. The price per square foot averaged 8,150,224 square feet of office space. $143.23. Cap rates have been lower in 2012, averaging 7.10% com- Sales Activity pared to the same period in 2011 when they averaged 7.77%. Tallying office building sales of 15,000 square feet or larger, One of the largest transactions that has occurred within the Austin office sales figures fell during the fourth quarter 2012 in last four quarters in the Austin market is the portfolio sale of eight terms of dollar volume compared to the third quarter of 2012. buildings in Austin. They totaled 3,212,962-square-feet in office In the fourth quarter, nine office transactions closed with space and sold for $859,000,000, or $267.35 per square foot. a total volume of $172,400,000. The nine buildings totaled The properties sold on 9/18/2012. 1,084,341 square feet and the average price per square foot equated to $158.99 per square foot. That compares to eight trans- actions totaling $1,142,841,804 in the third quarter 2012. The Reports compiled by: Jim Filler, CoStar Research Manager total square footage in the third quarter was 4,757,408 square feet for an average price per square foot of $240.22.

2 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 3 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market MARKETS

CoStar Submarkets

In analyzing metropolitan areas, CoStar has developed geographic designations to help group properties together, called Markets, Submarket Clusters and Submarkets. Markets are the equivalent of metropolitan areas, or areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Markets are then divided into Submarket Clusters, which are core areas within a metropolitan area that are known to be competitive with each other in terms of attracting and keeping tenants. Markets are then further subdivided into smaller units called Submarkets, which serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted competitive set, or peer group.

Submarket Clusters Bastrop County Caldwell County CBD* Cedar Park Central East Far Northwest North Northeast Northwest Round Rock South Southeast Southwest West Central

* Submarkets comprising the CBD. For statistics reference the CBD vs Suburban Figures at a Glance Page.

4 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 5 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market INVENTORY & DEVELOPMENT

Historical Deliveries 1982 - 2013

Deliveries Average Delivered SF 6.0 5.4 5.2 5.0 5.1 5.0 4.6

4.0 3.7 3.2 2.8 3.0 2.3 2.2 2.1

Millions of SF 1.9 2.0 1.7 1.6 1.5 1.4 1.2 1.2 1.0 1.0 0.9 1.0 0.6 0.6 0.7 0.5 0.4 0.2 0.2 0.1 0.2 0.1 0.2 0.0 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: CoStar Property® * Future deliveries based on current under construction buildings.

Construction Activity Markets Ranked by Under Construction Square Footage Under Construction Inventory Average Bldg Size Market # Bldgs Total RBA Preleased SF Preleased % All Existing U/C Northwest 2 176,000 176,000 100.0% 37,365 88,000 Central 2 82,455 61,995 75.2% 15,516 41,227 Southwest 2 77,330 240 0.3% 23,558 38,665 Round Rock 3 29,836 3,960 13.3% 14,511 9,945 West Central 1 15,000 15,000 100.0% 9,474 15,000 CBD 1 11,100 0 0.0% 31,136 11,100 South 1 3,000 0 0.0% 16,189 3,000 Caldwell County 0 0 0 0.0% 3,199 0 North 0 0 0 0.0% 39,819 0 Bastrop County 0 0 0 0.0% 5,045 0 All Other 0 0 0 0.0% 21,090 0 Totals 12 394,721 257,195 65.2% 22,445 32,893

Source: CoStar Property® Recent Deliveries Future Deliveries Leased & Un-Leased SF in Deliveries Since 2009 Preleased & Un-Leased SF in Properties Scheduled to Deliver

Leased Un-Leased Preleased Un-Leased 2.5 300

250

2.0 200 T 1.5

150

1.0 Millions of SF 100 Thousands of SF

0.5 50

0.0 0 2009 2010 2011 2012 2013 2013 2q 2013 3q 2014 4q

Source: CoStar Property® Source: CoStar Property®

4 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 5 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market INVENTORY & DEVELOPMENT

Historical Construction Starts & Deliveries Square Footage Per Quarter Starting and Completing Construction

Construction Starts Deliveries 0.3

0.3 0.24 0.22

0.2 0.19

0.2 0.14 0.14 0.11 0.10

Millions of SF 0.09 0.10 0.1 0.08 0.07 0.07 0.06 0.06 0.05 0.05 0.04 0.1 0.03 0.03 0.030.02 0.01 0.01 0.00 0.01 0.01 0.0 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property®

Recent Deliveries by Project Size Breakdown of Year-to-Date Development Based on RBA of Project

Building Size # Bldgs RBA SF Leased % Leased Avg Rate Single-Tenant Multi-Tenant

< 50,000 SF 3 21,129 12,040 57.0% $20.30 0 21,129

50,000 SF - 99,999 SF 0 0 0 0.0% $0.00 0 0

100,000 SF - 249,999 SF 0 0 0 0.0% $0.00 0 0

250,000 SF - 499,999 SF 0 0 0 0.0% $0.00 0 0

>= 500,000 SF 0 0 0 0.0% $0.00 0 0

Source: CoStar Property®

Recent Development by Tenancy Existing Inventory Comparison Based on RBA Developed for Single & Multi Tenant Use Based on Total RBA 2013 Deliveries Currently Under Construction By Class By Space Type

17% 0% 22%

45% 55% 47% 36% 78% 100%

Multi Single Multi Single Multi Single Class A Class B Class C

Source: CoStar Property® Source: CoStar Property®

6 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 7 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market INVENTORY & DEVELOPMENT

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6 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 7

������������������������ AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market FIGURES AT A GLANCE

Class A Market Statistics First Quarter 2013 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

Bastrop County 1 35,000 10,000 10,000 28.6% 0 0 0 $28.02

Caldwell County 0 0 0 0 0.0% 0 0 0 $0.00

CBD 24 7,094,322 842,498 897,192 12.6% (114,117) 0 0 $39.84

Cedar Park 2 232,274 59,505 59,505 25.6% 43,740 0 0 $26.10

Central 6 644,156 206,866 206,866 32.1% (17,961) 0 62,000 $32.82

East 2 224,370 0 0 0.0% 0 0 0 $0.00

Far Northwest 15 2,243,267 478,901 478,901 21.3% 50,611 0 0 $28.15

North 12 1,644,739 126,073 133,827 8.1% 48,707 0 0 $23.79

Northeast 3 189,381 15,385 15,385 8.1% 2,464 0 0 $16.59

Northwest 73 7,600,393 1,068,075 1,106,394 14.6% (43,030) 0 176,000 $29.14

Round Rock 12 2,300,595 83,273 85,089 3.7% 28,077 0 0 $30.56

South 22 2,954,248 205,518 217,846 7.4% 208,425 0 0 $33.64

Southeast 2 327,739 198,070 198,070 60.4% 6,582 0 0 $24.00

Southwest 32 4,307,077 324,346 328,144 7.6% (113,878) 0 53,330 $29.20

West Central 4 497,278 16,645 16,645 3.3% (3,304) 0 0 $34.51

Totals 210 30,294,839 3,635,155 3,753,864 12.4% 96,316 0 291,330 $31.62

Source: CoStar Property®

Class B Market Statistics First Quarter 2013 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

Bastrop County 28 175,781 16,222 16,222 9.2% 9,775 0 0 $11.54

Caldwell County 9 29,757 0 0 0.0% 1,692 0 0 $0.00

CBD 139 4,287,950 181,538 188,029 4.4% 81,523 0 11,100 $28.71

Cedar Park 97 931,642 73,403 78,030 8.4% 1,074 3,629 0 $22.47

Central 108 2,951,839 392,306 403,930 13.7% (37,083) 0 20,455 $20.08

East 60 1,553,837 366,755 366,755 23.6% (21,264) 0 0 $18.86

Far Northwest 90 1,724,975 153,207 153,207 8.9% 4,721 0 0 $21.16

North 64 4,386,107 281,453 281,453 6.4% (2,721) 0 0 $19.55

Northeast 47 2,391,001 283,335 283,335 11.9% (5,577) 0 0 $15.76

Northwest 237 6,872,817 664,998 714,514 10.4% 50,116 15,000 0 $23.79

Round Rock 196 1,928,318 292,342 301,504 15.6% (22,710) 2,500 29,836 $21.30

South 146 2,447,560 127,186 132,605 5.4% 20,665 0 3,000 $20.64

Southeast 44 2,756,105 278,456 278,456 10.1% (79) 0 0 $20.44

Southwest 275 5,054,432 559,326 568,977 11.3% (30,091) 0 24,000 $24.86

West Central 70 993,874 64,541 76,321 7.7% (10,596) 0 15,000 $29.01

Totals 1,610 38,485,995 3,735,068 3,843,338 10.0% 39,445 21,129 103,391 $22.15

Source: CoStar Property®

8 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 9 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market FIGURES AT A GLANCE

Class C Market Statistics First Quarter 2013 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

Bastrop County 49 182,760 2,000 2,000 1.1% 2,822 0 0 $11.34

Caldwell County 9 27,829 3,688 3,688 13.3% (1,156) 0 0 $15.94

CBD 278 2,348,602 124,130 124,130 5.3% 16,843 0 0 $22.89

Cedar Park 43 135,770 750 5,426 4.0% (3,676) 0 0 $23.90

Central 282 2,548,536 143,763 145,261 5.7% (1,776) 0 0 $17.84

East 165 861,924 33,641 33,641 3.9% (839) 0 0 $13.73

Far Northwest 77 419,807 21,184 21,184 5.0% 7,899 0 0 $16.81

North 91 618,946 66,531 66,531 10.7% 27,447 0 0 $15.78

Northeast 56 1,116,699 128,428 136,428 12.2% (6,300) 0 0 $12.11

Northwest 125 1,780,422 23,718 23,718 1.3% (607) 0 0 $22.57

Round Rock 131 690,440 49,571 49,931 7.2% 2,011 0 0 $17.60

South 274 1,753,572 97,127 101,360 5.8% (2,757) 0 0 $20.03

Southeast 31 371,439 9,962 10,837 2.9% (4,488) 0 0 $16.66

Southwest 129 909,988 23,764 25,878 2.8% 14,254 0 0 $21.09

West Central 143 564,695 13,514 13,514 2.4% 2,490 0 0 $25.28

Totals 1,883 14,331,429 741,771 763,527 5.3% 52,167 0 0 $18.10

Source: CoStar Property®

Total Office Market Statistics First Quarter 2013 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

Bastrop County 78 393,541 28,222 28,222 7.2% 12,597 0 0 $13.65

Caldwell County 18 57,586 3,688 3,688 6.4% 536 0 0 $15.94

CBD 441 13,730,874 1,148,166 1,209,351 8.8% (15,751) 0 11,100 $36.49

Cedar Park 142 1,299,686 133,658 142,961 11.0% 41,138 3,629 0 $23.77

Central 396 6,144,531 742,935 756,057 12.3% (56,820) 0 82,455 $22.85

East 227 2,640,131 400,396 400,396 15.2% (22,103) 0 0 $15.77

Far Northwest 182 4,388,049 653,292 653,292 14.9% 63,231 0 0 $26.54

North 167 6,649,792 474,057 481,811 7.2% 73,433 0 0 $20.37

Northeast 106 3,697,081 427,148 435,148 11.8% (9,413) 0 0 $14.97

Northwest 435 16,253,632 1,756,791 1,844,626 11.3% 6,479 15,000 176,000 $27.02

Round Rock 339 4,919,353 425,186 436,524 8.9% 7,378 2,500 29,836 $21.98

South 442 7,155,380 429,831 451,811 6.3% 226,333 0 3,000 $25.86

Southeast 77 3,455,283 486,488 487,363 14.1% 2,015 0 0 $20.50

Southwest 436 10,271,497 907,436 922,999 9.0% (129,715) 0 77,330 $26.51

West Central 217 2,055,847 94,700 106,480 5.2% (11,410) 0 15,000 $29.32

Totals 3,703 83,112,263 8,111,994 8,360,729 10.1% 187,928 21,129 394,721 $26.36

Source: CoStar Property®

8 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 9 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market FIGURES AT A GLANCE

Class A Market Statistics First Quarter 2013 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

CBD 24 7,094,322 842,498 897,192 12.6% (114,117) 0 0 $39.84

Suburban 186 23,200,517 2,792,657 2,856,672 12.3% 210,433 0 291,330 $29.05

Totals 210 30,294,839 3,635,155 3,753,864 12.4% 96,316 0 291,330 $31.62 Source: CoStar Property®

Class B Market Statistics First Quarter 2013 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

CBD 139 4,287,950 181,538 188,029 4.4% 81,523 0 11,100 $28.71

Suburban 1,471 34,198,045 3,553,530 3,655,309 10.7% (42,078) 21,129 92,291 $21.73

Totals 1,610 38,485,995 3,735,068 3,843,338 10.0% 39,445 21,129 103,391 $22.15 Source: CoStar Property®

Class C Market Statistics First Quarter 2013 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

CBD 278 2,348,602 124,130 124,130 5.3% 16,843 0 0 $22.89

Suburban 1,605 11,982,827 617,641 639,397 5.3% 35,324 0 0 $17.30

Totals 1,883 14,331,429 741,771 763,527 5.3% 52,167 0 0 $18.10 Source: CoStar Property®

Class A & B Market Statistics First Quarter 2013 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

CBD 163 11,382,272 1,024,036 1,085,221 9.5% (32,594) 0 11,100 $37.88

Suburban 1,657 57,398,562 6,346,187 6,511,981 11.3% 168,355 21,129 383,621 $25.31

Totals 1,820 68,780,834 7,370,223 7,597,202 11.0% 135,761 21,129 394,721 $27.28 Source: CoStar Property®

Total Office Market Statistics First Quarter 2013 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

CBD 441 13,730,874 1,148,166 1,209,351 8.8% (15,751) 0 11,100 $36.49

Suburban 3,262 69,381,389 6,963,828 7,151,378 10.3% 203,679 21,129 383,621 $24.49

Totals 3,703 83,112,263 8,111,994 8,360,729 10.1% 187,928 21,129 394,721 $26.36 Source: CoStar Property®

10 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 11 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market FIGURES AT A GLANCE

Class A Market Statistics First Quarter 2013 Existing Inventory Vacancy Net Deliveries UC Inventory Quoted Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates 2013 1q 210 30,294,839 3,635,155 3,753,864 12.4% 96,316 0 0 4 291,330 $31.62 2012 4q 210 30,294,839 3,787,337 3,850,180 12.7% 282,579 1 172,800 4 291,330 $30.45 2012 3q 209 30,122,039 3,846,490 3,959,959 13.1% (63,303) 2 92,200 3 288,130 $30.17 2012 2q 207 30,029,839 3,628,596 3,804,456 12.7% 114,672 0 0 4 327,000 $29.87 2012 1q 207 30,029,839 3,739,194 3,919,128 13.1% 380,144 0 0 3 265,000 $29.35 2011 207 30,029,839 4,076,296 4,299,272 14.3% 977,509 2 165,000 1 70,200 $29.13 2010 205 29,864,839 4,785,323 5,111,781 17.1% 632,510 0 0 2 165,000 $28.89 2009 205 29,864,839 5,321,273 5,744,291 19.2% 382,693 12 1,433,542 2 165,000 $28.26 2008 193 28,431,297 4,398,426 4,693,442 16.5% 859,827 15 2,040,612 14 1,598,542 $28.76 2007 178 26,390,685 3,207,463 3,512,657 13.3% 34,185 9 958,637 20 2,638,083 $29.33 2006 169 25,432,048 2,224,254 2,588,205 10.2% 2,426,975 6 964,099 11 1,415,203 $26.29 2005 163 24,467,949 3,432,262 4,051,081 16.6% 579,802 0 0 6 964,099 $22.09 2004 163 24,467,949 3,861,879 4,630,883 18.9% 1,634,679 2 156,370 2 413,341 $20.66 2003 161 24,311,579 4,987,616 6,109,192 25.1% 918,055 3 751,060 2 156,370 $19.80 2002 158 23,560,519 3,690,928 6,276,187 26.6% (860,922) 10 1,077,858 4 833,060 $21.73 2001 148 22,482,661 2,403,262 4,337,407 19.3% 477,140 20 3,531,000 12 1,268,244 $26.58

Source: CoStar Property®

Class B Market Statistics First Quarter 2013 Existing Inventory Vacancy Net Deliveries UC Inventory Quoted Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates 2013 1q 1,610 38,485,995 3,735,068 3,843,338 10.0% 39,445 3 21,129 8 103,391 $22.15 2012 4q 1,607 38,464,866 3,795,039 3,861,654 10.0% 618,798 5 67,016 9 97,520 $22.11 2012 3q 1,602 38,397,850 4,276,938 4,413,436 11.5% 17,891 1 3,750 13 152,536 $21.99 2012 2q 1,601 38,394,100 4,299,318 4,427,577 11.5% 190,666 9 139,493 13 145,186 $22.01 2012 1q 1,592 38,254,607 4,388,720 4,478,750 11.7% 304,788 3 7,500 18 253,210 $21.38 2011 1,589 38,247,107 4,712,386 4,776,038 12.5% 460,965 9 66,474 18 231,059 $21.46 2010 1,580 38,180,633 5,031,194 5,170,529 13.5% 359,126 20 224,898 11 71,288 $22.10 2009 1,560 37,955,735 5,075,457 5,304,757 14.0% 20,456 27 459,845 13 174,120 $21.86 2008 1,533 37,495,890 4,706,916 4,865,368 13.0% 1,050,331 93 1,692,955 28 468,137 $22.50 2007 1,441 35,810,935 4,026,745 4,230,744 11.8% 723,897 61 1,048,656 70 1,451,805 $21.99 2006 1,380 34,762,279 3,638,213 3,905,985 11.2% 1,025,305 50 573,564 55 1,408,070 $19.59 2005 1,331 34,633,715 4,604,902 4,802,726 13.9% 505,069 47 639,377 46 496,828 $17.35 2004 1,284 33,994,338 4,487,028 4,668,418 13.7% 405,855 24 386,719 39 535,149 $16.86 2003 1,261 33,711,539 4,337,457 4,791,474 14.2% (57,734) 34 409,002 20 547,498 $16.47 2002 1,227 33,302,537 3,676,534 4,324,738 13.0% (363,504) 34 561,836 31 338,480 $19.23 2001 1,194 32,784,446 2,790,625 3,443,143 10.5% (358,918) 62 1,429,794 35 575,716 $21.70

Source: CoStar Property®

Total Office Market Statistics First Quarter 2013 Existing Inventory Vacancy Net Deliveries UC Inventory Quoted Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates 2013 1q 3,703 83,112,263 8,111,994 8,360,729 10.1% 187,928 3 21,129 12 394,721 $26.36 2012 4q 3,700 83,091,134 8,385,657 8,527,528 10.3% 868,304 6 239,816 13 388,850 $25.72 2012 3q 3,695 82,988,695 9,031,670 9,293,393 11.2% (157,838) 3 95,950 16 440,666 $25.52 2012 2q 3,692 82,892,745 8,723,939 9,039,605 10.9% 314,649 9 139,493 17 472,186 $25.26 2012 1q 3,683 82,753,252 8,933,599 9,214,761 11.1% 717,027 3 7,500 21 518,210 $24.79 2011 3,680 82,745,752 9,600,158 9,924,288 12.0% 1,540,517 11 231,474 19 301,259 $24.81 2010 3,669 82,514,278 10,760,662 11,233,331 13.6% 1,011,615 20 224,898 13 236,288 $25.03 2009 3,649 82,289,380 11,349,670 12,020,048 14.6% 468,075 41 1,944,714 15 339,120 $24.85 2008 3,608 80,344,666 10,077,443 10,543,409 13.1% 1,916,409 111 3,737,942 44 2,118,006 $25.16 2007 3,498 76,614,724 8,211,056 8,729,876 11.4% 898,835 76 2,110,852 93 4,094,263 $25.26 2006 3,423 74,508,628 6,872,754 7,522,615 10.1% 3,587,635 63 1,579,331 68 2,906,071 $22.28 2005 3,362 73,392,297 9,169,369 9,993,919 13.6% 1,177,406 52 657,907 57 1,485,966 $19.50 2004 3,312 72,788,521 9,590,382 10,567,549 14.5% 2,163,318 34 587,876 46 965,440 $18.47 2003 3,281 72,320,545 10,664,147 12,262,891 17.0% 597,466 42 1,179,728 31 758,994 $18.23 2002 3,239 71,140,817 8,387,151 11,680,629 16.4% (1,418,276) 51 1,684,272 40 1,195,545 $20.49 2001 3,191 69,513,441 5,963,565 8,634,977 12.4% (45,857) 94 5,055,491 53 1,879,557 $24.67

Source: CoStar Property®

10 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 11 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market LEASING ACTIVITY

Historical Rental Rates Based on Full-Service Equivalent Rental Rates

A B C Total Market

$35.00

$30.00

$25.00

$20.00

$15.00

Dollars/SF/Year $10.00

$5.00

$0.00

4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q 2q 4q 0 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9 0 0 1 1 2 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

Source: CoStar Property®

Vacancy by Available Space Type Vacancy by Class Percent of All Vacant Space in Direct vs. Sublet Percent of All Vacant Space by Class Austin United States Austin United States

3% 4% 9% 17%

46% 34% 49% 45%

97% 96%

Direct Sublet Direct Sublet Class A Class B Class C Class A Class B Class C

Source: CoStar Property® Source: CoStar Property®

U.S. Rental Rate Comparison Future Space Available Based on Full-Service Equivalent Rental Rates Space Scheduled to be Available for Occupancy*

Austin United States 0.7 0.65 $30.00 0.6 $25.00 0.5 $20.00 0.41 0.4

$15.00 0.3 Millions 0.21 $10.00 Dollars/SF/Year 0.2

$5.00 0.1 0.07 0.00 0.00 $0.00 0.0 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Source: CoStar Property® * Includes Under Construction Spaces Source: CoStar Property®

12 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 13 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market LEASING ACTIVITY

Select Top Office Leases Based on Leased Square Footage For Deals Signed in 2013 Building Submarket SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company

1 Buildings A, B, C, D, E, F, K, M, N, O* Northwest 295,815 1st Flextronics Global Services Texas N/A REIT Management & Research LLC

2 Research Park Plaza Bldg III Northwest 173,530 1st N/A N/A CBRE

3 Amber Oaks H Far Northwest 24,724 1st N/A N/A CBRE

4 3rd & Colorado CBD 24,500 1st N/A N/A Cousins Properties Incorporated

5 Austin Centre CBD 23,931 1st LIN Media CBRE Thomas Properties Group

6 Plaza on the Lake I Southwest 20,379 1st N/A N/A CBRE

7 200 W Cesar Chavez St CBD 18,572 1st N/A N/A Oxford Commercial

8 300 West Sixth CBD 18,438 1st Cirrus Logic Inc Jones Lang LaSalle Thomas Properties Group

9 Echelon IV Northwest 18,335 1st N/A N/A Congress Holdings Group

10 One American Center CBD 18,080 1st Tableau Software Cresa Thomas Properties Group

11 Arboretum Plaza II* Northwest 17,599 1st Independence Title Company N/A CBRE

12 Wells Fargo Tower CBD 17,090 1st AEP Swearingen Realty Group, L.L.C. Stream Realty Partners, L.P.

13 Escalade Bldg A Southwest 16,307 1st N/A N/A HPI Real Estate, Inc.

14 Amber Oaks I Far Northwest 15,844 1st N/A N/A CBRE

15 University Park Central 15,691 1st N/A N/A Stream Realty Partners, L.P.

16 Offices at the Domain Building 1 North 15,038 1st N/A N/A Transwestern

17 Research Park Plaza Bldg IV Northwest 14,839 1st N/A N/A CBRE

18 Aspen Lake One Far Northwest 14,504 1st LDR Spine Expansion N/A AQUILA Commercial

19 Austin Centre CBD 14,051 1st HNTB Corp AQUILA Commercial Thomas Properties Group

20 Monterey Oaks Corp Park - Bldg C Southwest 13,350 1st N/A N/A AQUILA Commercial

21 Travis Bldg CBD 13,125 1st N/A N/A Travis Properties/Vaughn Building

22 Stonebridge Plaza I Northwest 12,322 1st N/A N/A CBRE

23 Mira Vista* Southwest 11,824 1st N/A N/A Live Oak-Gottesman

24 River Place Corporate Park Building VII Northwest 11,790 1st N/A N/A CBRE

25 Lakewood Center II Northwest 11,365 1st N/A N/A CBRE

26 Research Park Plaza Bldg IV Northwest 11,342 1st N/A N/A CBRE

27 Las Cimas III Southwest 11,329 1st N/A N/A Peloton Commercial Real Estate

28 300 West Sixth CBD 10,888 1st Comerica Bank CBRE Thomas Properties Group

29 100 Congress Ave CBD 10,799 1st N/A N/A CBRE

30 The Terrace VI South 10,514 1st N/A N/A AQUILA Commercial

31 5011 Burnet Rd Central 10,227 1st Eyes Physicians N/A N/A

32 5000 Plaza on the Lake Southwest 9,859 1st N/A N/A Endeavor Real Estate Group

33 Monterey Oaks Corp Park - Bldg D Southwest 9,496 1st N/A N/A AQUILA Commercial

34 8303 Mopac Central 9,071 1st N/A N/A AQUILA Commercial

35 Tower Point Far Northwest 8,749 1st N/A N/A AQUILA Commercial

36 Research Interchange C North 8,600 1st N/A N/A The Gaston Co.

37 Centennial Towers Central 8,544 1st N/A N/A ECR

38 Wells Fargo Tower CBD 8,472 1st N/A N/A Stream Realty Partners, L.P.

39 Colina West Northwest 8,310 1st N/A N/A ECR

40 Four Points Centre Bldg 1 Far Northwest 8,283 1st Consilience Software Commercial Texas, LLC Oxford Commercial

Source: CoStar Property® * Renewal

12 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 13 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market SALES ACTIVITY

The Optimist Sales Index Average of Two Highest Price/SF's and Two Lowest Cap Rates Per Quarter

Cap Rate Price/SF 10.0% $350

9.0% $300 8.0%

7.0% $250 Dollars/SF 6.0% $200 5.0% $150 4.0%

3.0% $100 Cap Rate PercentageRate Cap 2.0% $50 1.0%

0.0% $0 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q

Source: CoStar COMPS®

Sales Volume & Price Sales Analysis by Building Size Based on Office Building Sales of 15,000 SF and Larger Based on Office Building Sales From Jan. 2012 - Dec. 2012

Sales Volume Price/SF Bldg Size # RBA $ Volume Price/SF Cap Rate $1,200 $300

< 50,000 SF 35 360,129 $ 65,603,311 182.17$ 10.05% $1,000 $250

$800 $200

Price/SF 50K-249K SF 18 2,547,428 $ 477,201,804 187.33$ 6.93% $600 $150

$400 $100 250K-499K SF 5 1,546,130 $ 272,250,000 176.08$ 6.89%

Millions of Sales Volume Dollars $200 $50

$0 $0 >500K SF 1 3,212,962 $ 859,000,000 267.35$ - 2009 1q 2009 4q 2010 2q 2010 4q 2011 2q 2011 4q 2012 2q 2012 4q

Source: CoStar COMPS® Source: CoStar COMPS®

U.S. Price/SF Comparison U.S. Cap Rate Comparison Based on Office Building Sales of 15,000 SF and Larger Based on Office Building Sales of 15,000 SF and Larger

Austin US Austin US $270 10.0%

9.0% $220 8.0%

$170 7.0%

6.0% $120

Dollars perSF Dollars 5.0% Cap Rate PercentageRate Cap $70 4.0%

$20 3.0% 2009 2009 2010 2010 2011 2011 2012 2012 2009 2009 2010 2010 2011 2011 2012 2012 1q 4q 2q 4q 2q 4q 2q 4q 1q 4q 2q 4q 2q 4q 2q 4q

Source: CoStar COMPS® Source: CoStar COMPS®

14 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 15 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market SALES ACTIVITY

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14 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 15 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market BASTROP COUNTY MARKET MARKET HIGHLIGHTS – CLASS “A, B & C” MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.025 25.0%

0.020 20.0% 0.015 Percent Percent Vacant 0.010 15.0%

0.005

Millions SF 10.0% 0.000

(0.005) 5.0% (0.010)

(0.015) 0.0% 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $25.00 0.07

0.06 $20.00

0.05 $15.00 0.04

0.03 $10.00 Millions SF Dollars/SF/Year 0.02 $5.00 0.01

0.00 $0.00 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2013 1q 78 393,541 28,222 7.2% 12,597 0 0 0 0 $13.65 2012 4q 78 393,541 40,819 10.4% 1,499 0 0 0 0 $16.08 2012 3q 78 393,541 42,318 10.8% 10,226 0 0 0 0 $15.07 2012 2q 78 393,541 52,544 13.4% 8,876 0 0 0 0 $19.21 2012 1q 78 393,541 61,420 15.6% (9,425) 0 0 0 0 $19.12 2011 4q 78 393,541 51,995 13.2% 14,550 1 12,000 0 0 $17.34 2011 3q 77 381,541 54,545 14.3% 1,640 0 0 1 12,000 $14.33 2011 2q 77 381,541 56,185 14.7% 10,668 1 2,526 1 12,000 $14.59 2011 1q 76 379,015 64,327 17.0% 20,441 3 19,425 2 14,526 $15.55 2010 4q 73 359,590 65,343 18.2% 8,502 2 8,200 4 21,951 $21.43 2010 3q 71 351,390 65,645 18.7% 403 0 0 6 30,151 $21.10 2010 2q 71 351,390 66,048 18.8% 8,717 1 4,713 5 27,625 $18.37 2010 1q 70 346,677 70,052 20.2% 752 0 0 3 12,913 $18.33 2009 4q 70 346,677 70,804 20.4% 11,579 1 8,028 1 4,713 $17.38 2009 3q 69 338,649 74,355 22.0% (44,455) 1 5,400 2 12,741 $15.64 2009 2q 68 333,249 24,500 7.4% 0 0 0 2 13,428 $0.00

Source: CoStar Property®

16 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 17 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market CALDWELL COUNTY MARKET MARKET HIGHLIGHTS – CLASS “A, B & C” MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.004 9.0%

0.003 8.0%

0.002 7.0%

0.001 6.0% Percent Vacant

0.000 5.0%

(0.001) 4.0% Millions SF (0.002) 3.0%

(0.003) 2.0%

(0.004) 1.0%

(0.005) 0.0% 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $18.00 0.01 $16.00 0.00

0.00 $14.00

0.00 $12.00

0.00 $10.00 0.00 $8.00

Millions SF 0.00

Dollars/SF/Year $6.00 0.00 $4.00 0.00 $2.00 0.00

0.00 $0.00 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2013 1q 18 57,586 3,688 6.4% 536 0 0 0 0 $15.94 2012 4q 18 57,586 4,224 7.3% (1,692) 0 0 0 0 $11.53 2012 3q 18 57,586 2,532 4.4% 2,020 0 0 0 0 $11.53 2012 2q 18 57,586 4,552 7.9% (4,076) 0 0 0 0 $10.57 2012 1q 18 57,586 476 0.8% 0 0 0 0 0 $13.34 2011 4q 18 57,586 476 0.8% 0 0 0 0 0 $13.34 2011 3q 18 57,586 476 0.8% 3,165 0 0 0 0 $13.31 2011 2q 18 57,586 3,641 6.3% (964) 0 0 0 0 $13.31 2011 1q 18 57,586 2,677 4.6% 0 0 0 0 0 $11.61 2010 4q 18 57,586 2,677 4.6% 1,034 0 0 0 0 $17.33 2010 3q 18 57,586 3,711 6.4% (1,510) 0 0 0 0 $17.09 2010 2q 18 57,586 2,201 3.8% (1,901) 0 0 0 0 $17.88 2010 1q 18 57,586 300 0.5% 3,500 0 0 0 0 $22.20 2009 4q 18 57,586 3,800 6.6% 0 0 0 0 0 $22.20 2009 3q 18 57,586 3,800 6.6% (3,800) 0 0 0 0 $22.55 2009 2q 18 57,586 0 0.0% 0 0 0 0 0 $0.00

Source: CoStar Property®

16 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 17 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market C B D M A R K E T MARKET HIGHLIGHTS – CLASS “A, B & C” MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.300 12.0%

0.250 10.0% 0.200

8.0% Percent Vacant 0.150

0.100 6.0% Millions SF 0.050 4.0% 0.000 2.0% (0.050)

(0.100) 0.0% 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $37.00 1.35 $36.50

1.30 $36.00

1.25 $35.50 $35.00 1.20 $34.50

1.15 $34.00 Millions SF

Dollars/SF/Year $33.50 1.10 $33.00 1.05 $32.50

1.00 $32.00 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2013 1q 441 13,730,874 1,209,351 8.8% (15,751) 0 0 1 11,100 $36.49 2012 4q 441 13,730,874 1,193,600 8.7% 11,806 0 0 1 11,100 $34.72 2012 3q 441 13,730,874 1,205,406 8.8% 91,106 0 0 1 11,100 $34.44 2012 2q 441 13,730,874 1,296,512 9.4% 37,984 0 0 0 0 $33.82 2012 1q 441 13,730,874 1,334,496 9.7% (42,771) 0 0 0 0 $33.63 2011 4q 441 13,730,874 1,291,725 9.4% 25,078 0 0 0 0 $33.25 2011 3q 441 13,730,874 1,316,803 9.6% 87,817 0 0 0 0 $32.75 2011 2q 441 13,730,874 1,404,620 10.2% 2,934 0 0 0 0 $32.74 2011 1q 441 13,730,874 1,407,554 10.3% 33,039 1 55,000 0 0 $32.69 2010 4q 440 13,675,874 1,385,593 10.1% (42,162) 0 0 1 55,000 $32.56 2010 3q 440 13,675,874 1,343,431 9.8% (17,264) 1 16,532 1 55,000 $32.29 2010 2q 439 13,659,342 1,309,635 9.6% 244,349 0 0 2 71,532 $31.60 2010 1q 439 13,659,342 1,553,984 11.4% (24,095) 0 0 2 71,532 $31.74 2009 4q 439 13,659,342 1,529,889 11.2% (26,456) 0 0 2 71,532 $31.66 2009 3q 439 13,659,342 1,503,433 11.0% (77,289) 0 0 1 55,000 $31.65 2009 2q 439 13,659,342 1,426,144 10.4% (78,003) 0 0 1 55,000 $31.91

Source: CoStar Property®

18 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 19 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market CEDAR PARK MARKET MARKET HIGHLIGHTS – CLASS “A, B & C” MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.070 35.0%

0.060 30.0% 0.050 25.0%

0.040 Percent Vacant

0.030 20.0% 0.020 15.0% Millions SF 0.010

0.000 10.0% (0.010) 5.0% (0.020)

(0.030) 0.0% 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $23.80 0.25

$23.70 0.20

$23.60

0.15 $23.50

Millions SF 0.10

Dollars/SF/Year $23.40

0.05 $23.30

0.00 $23.20 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2013 1q 142 1,299,686 142,961 11.0% 41,138 1 3,629 0 0 $23.77 2012 4q 141 1,296,057 180,470 13.9% 11,208 0 0 1 3,629 $23.40 2012 3q 141 1,296,057 191,678 14.8% (20,082) 0 0 1 3,629 $23.50 2012 2q 141 1,296,057 171,596 13.2% 10,656 1 4,180 1 3,629 $23.54 2012 1q 140 1,291,877 178,072 13.8% 64,161 0 0 1 4,180 $23.61 2011 4q 140 1,291,877 242,233 18.8% 13,335 0 0 0 0 $23.22 2011 3q 140 1,291,877 255,568 19.8% 23,995 1 6,162 0 0 $23.20 2011 2q 139 1,285,715 273,401 21.3% 5,109 0 0 1 6,162 $23.25 2011 1q 139 1,285,715 278,510 21.7% 51,725 0 0 1 6,162 $23.35 2010 4q 139 1,285,715 330,235 25.7% 13,220 0 0 1 6,162 $24.29 2010 3q 139 1,285,715 343,455 26.7% 28,590 0 0 0 0 $24.18 2010 2q 139 1,285,715 372,045 28.9% 49,296 0 0 0 0 $23.96 2010 1q 139 1,285,715 421,341 32.8% (17,907) 0 0 0 0 $24.26 2009 4q 139 1,285,715 403,434 31.4% 2,734 0 0 0 0 $24.32 2009 3q 139 1,285,715 406,168 31.6% 20,285 0 0 0 0 $24.39 2009 2q 139 1,285,715 426,453 33.2% 15,711 1 3,876 0 0 $25.11

Source: CoStar Property®

18 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 19 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market CENTRAL MARKET MARKET HIGHLIGHTS – CLASS “A, B & C” MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.080 16.0%

0.060 14.0%

0.040 12.0% Percent Percent Vacant 0.020 10.0%

0.000 8.0% Millions SF (0.020) 6.0%

(0.040) 4.0%

(0.060) 2.0%

(0.080) 0.0% 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $23.00 0.78

$22.80 0.76

$22.60 0.74

$22.40 0.72

$22.20 0.70 Millions SF Dollars/SF/Year 0.68 $22.00

0.66 $21.80

0.64 $21.60 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2013 1q 396 6,144,531 756,057 12.3% (56,820) 0 0 2 82,455 $22.85 2012 4q 396 6,144,531 699,237 11.4% 38,131 0 0 2 82,455 $22.26 2012 3q 396 6,144,531 737,368 12.0% (1,195) 1 22,000 2 82,455 $22.12 2012 2q 395 6,122,531 714,173 11.7% (12,051) 0 0 3 104,455 $22.63 2012 1q 395 6,122,531 702,122 11.5% 25,658 0 0 2 42,455 $22.29 2011 4q 395 6,122,531 727,780 11.9% 630 0 0 0 0 $22.17 2011 3q 395 6,122,531 728,410 11.9% 51,930 0 0 0 0 $22.08 2011 2q 395 6,122,531 780,340 12.7% (294) 0 0 0 0 $20.43 2011 1q 395 6,122,531 780,046 12.7% 63,893 0 0 0 0 $20.19 2010 4q 395 6,122,531 843,939 13.8% 2,590 0 0 0 0 $20.29 2010 3q 395 6,122,531 846,529 13.8% (59,276) 0 0 0 0 $20.41 2010 2q 395 6,122,531 787,253 12.9% 72,362 0 0 0 0 $20.40 2010 1q 395 6,122,531 859,615 14.0% 48,591 0 0 0 0 $19.45 2009 4q 395 6,122,531 908,206 14.8% (58,371) 0 0 0 0 $19.83 2009 3q 395 6,122,531 849,835 13.9% 96,984 3 327,301 0 0 $20.13 2009 2q 392 5,795,230 619,518 10.7% (9,099) 1 13,000 3 327,301 $20.46

Source: CoStar Property®

20 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 21 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market EAST MARKET MARKET HIGHLIGHTS – CLASS “A, B & C” MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.100 20.0%

18.0%

0.050 16.0%

14.0% Percent Vacant

0.000 12.0%

10.0%

Millions SF (0.050) 8.0%

6.0%

(0.100) 4.0%

2.0%

(0.150) 0.0% 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $19.00 0.60 $18.50

0.50 $18.00

$17.50 0.40 $17.00

$16.50 0.30 $16.00 Millions SF

0.20 Dollars/SF/Year $15.50

$15.00 0.10 $14.50

0.00 $14.00 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2013 1q 227 2,640,131 400,396 15.2% (22,103) 0 0 0 0 $15.77 2012 4q 227 2,640,131 378,293 14.3% 1,367 0 0 0 0 $17.21 2012 3q 228 2,777,508 517,037 18.6% (107,283) 0 0 0 0 $17.46 2012 2q 228 2,777,508 409,754 14.8% (27) 0 0 0 0 $17.39 2012 1q 228 2,777,508 409,727 14.8% 12,606 0 0 0 0 $18.65 2011 4q 228 2,777,508 422,333 15.2% 9,927 0 0 0 0 $18.58 2011 3q 228 2,777,508 432,260 15.6% 50,692 0 0 0 0 $17.93 2011 2q 228 2,777,508 482,952 17.4% (13,103) 0 0 0 0 $18.27 2011 1q 228 2,777,508 469,849 16.9% 7,142 0 0 0 0 $17.82 2010 4q 228 2,777,508 476,991 17.2% (923) 0 0 0 0 $18.09 2010 3q 228 2,777,508 476,068 17.1% (6,873) 0 0 0 0 $17.97 2010 2q 228 2,777,508 469,195 16.9% 7,211 0 0 0 0 $18.06 2010 1q 228 2,777,508 476,406 17.2% 83,275 1 10,000 0 0 $18.04 2009 4q 227 2,767,508 549,681 19.9% (24,540) 0 0 1 10,000 $17.78 2009 3q 227 2,767,508 525,141 19.0% 26,606 0 0 1 10,000 $18.44 2009 2q 227 2,767,508 551,747 19.9% 8,779 0 0 1 10,000 $18.35

Source: CoStar Property®

20 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 21 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market FAR NORTHWEST MARKET MARKET HIGHLIGHTS – CLASS “A, B & C” MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.250 35.0%

30.0% 0.200

25.0% 0.150 Percent Vacant

20.0% 0.100 15.0% Millions SF 0.050 10.0%

0.000 5.0%

(0.050) 0.0% 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $27.00 0.90 $26.50 0.80 $26.00 0.70 $25.50 0.60 $25.00 0.50 $24.50 0.40 Millions SF

0.30 Dollars/SF/Year $24.00

0.20 $23.50

0.10 $23.00

0.00 $22.50 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2013 1q 182 4,388,049 653,292 14.9% 63,231 0 0 0 0 $26.54 2012 4q 182 4,388,049 716,523 16.3% 35,151 0 0 0 0 $25.78 2012 3q 182 4,388,049 751,674 17.1% 17,804 0 0 0 0 $23.91 2012 2q 182 4,388,049 769,478 17.5% 16,697 0 0 0 0 $24.41 2012 1q 182 4,388,049 786,175 17.9% 172,811 0 0 0 0 $25.03 2011 4q 182 4,388,049 958,986 21.9% 134,143 1 17,146 0 0 $24.95 2011 3q 181 4,370,903 1,075,983 24.6% 191,668 0 0 1 17,146 $25.58 2011 2q 181 4,370,903 1,267,651 29.0% 14,182 0 0 1 17,146 $24.86 2011 1q 181 4,370,903 1,281,833 29.3% 27,919 0 0 1 17,146 $24.73 2010 4q 181 4,370,903 1,309,752 30.0% 9,731 0 0 0 0 $24.18 2010 3q 181 4,370,903 1,319,483 30.2% 1,675 0 0 0 0 $24.95 2010 2q 181 4,370,903 1,321,158 30.2% 19,658 0 0 0 0 $24.08 2010 1q 181 4,370,903 1,340,816 30.7% (15,217) 0 0 0 0 $24.16 2009 4q 181 4,370,903 1,325,599 30.3% 18,485 0 0 0 0 $24.49 2009 3q 181 4,370,903 1,344,084 30.8% 17,888 0 0 0 0 $24.87 2009 2q 181 4,370,903 1,361,972 31.2% (398,464) 0 0 0 0 $25.21

Source: CoStar Property®

22 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 23 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market NORTH MARKET MARKET HIGHLIGHTS – CLASS “A, B & C” MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.120 14.0%

0.100 12.0% 0.080 10.0% 0.060 Percent Vacant

0.040 8.0%

0.020 6.0% Millions SF 0.000 4.0% (0.020) 2.0% (0.040)

(0.060) 0.0% 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $21.40 0.58 $21.20 0.56

0.54 $21.00

0.52 $20.80

0.50 $20.60 0.48

Millions SF $20.40

0.46 Dollars/SF/Year $20.20 0.44 $20.00 0.42

0.40 $19.80 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2013 1q 167 6,649,792 481,811 7.2% 73,433 0 0 0 0 $20.37 2012 4q 167 6,649,792 555,244 8.3% (10,018) 0 0 0 0 $20.38 2012 3q 167 6,649,792 545,226 8.2% 34,731 1 70,200 0 0 $20.40 2012 2q 166 6,579,592 509,757 7.7% 26,276 1 36,000 1 70,200 $21.25 2012 1q 165 6,543,592 500,033 7.6% 88,078 0 0 2 106,200 $20.60 2011 4q 165 6,543,592 588,111 9.0% 71,591 0 0 2 106,200 $19.70 2011 3q 165 6,543,592 659,702 10.1% 24,791 0 0 1 36,000 $20.51 2011 2q 165 6,543,592 684,493 10.5% 52,058 1 110,000 1 36,000 $22.98 2011 1q 164 6,433,592 626,551 9.7% 12,629 0 0 1 110,000 $19.49 2010 4q 164 6,433,592 639,180 9.9% 68,821 1 8,000 1 110,000 $20.31 2010 3q 163 6,425,592 700,001 10.9% 89,062 0 0 2 118,000 $20.23 2010 2q 163 6,425,592 789,063 12.3% 49,528 0 0 2 118,000 $21.79 2010 1q 163 6,425,592 838,591 13.1% (33,685) 0 0 2 118,000 $22.97 2009 4q 163 6,425,592 804,906 12.5% 50,653 0 0 1 110,000 $22.93 2009 3q 163 6,425,592 855,559 13.3% 205,923 0 0 1 110,000 $22.93 2009 2q 163 6,425,592 1,061,482 16.5% 20,997 1 173,962 1 110,000 $22.80

Source: CoStar Property®

22 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 23 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market NORTHEAST MARKET MARKET HIGHLIGHTS – CLASS “A, B & C” MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.500 25.0%

0.400

0.300 20.0%

0.200 Percent Vacant 15.0% 0.100

0.000

Millions SF 10.0% (0.100)

(0.200) 5.0% (0.300)

(0.400) 0.0% 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $17.00 0.90

0.80 $16.50 0.70 $16.00 0.60

0.50 $15.50 0.40 Millions SF

0.30 Dollars/SF/Year $15.00

0.20 $14.50 0.10

0.00 $14.00 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2013 1q 106 3,697,081 435,148 11.8% (9,413) 0 0 0 0 $14.97 2012 4q 106 3,697,081 425,735 11.5% 377,400 0 0 0 0 $16.08 2012 3q 106 3,697,081 803,135 21.7% (22,162) 0 0 0 0 $16.53 2012 2q 106 3,697,081 780,973 21.1% (451) 0 0 0 0 $16.04 2012 1q 106 3,697,081 780,522 21.1% (22,595) 0 0 0 0 $15.80 2011 4q 106 3,697,081 757,927 20.5% 27,324 0 0 0 0 $15.88 2011 3q 106 3,697,081 785,251 21.2% (84,475) 1 5,179 0 0 $15.75 2011 2q 105 3,691,902 695,597 18.8% 156,654 0 0 1 5,179 $15.83 2011 1q 105 3,691,902 852,251 23.1% (317,920) 0 0 1 5,179 $16.14 2010 4q 105 3,691,902 534,331 14.5% (3,496) 0 0 1 5,179 $16.35 2010 3q 105 3,691,902 530,835 14.4% 64,765 0 0 1 5,179 $16.40 2010 2q 105 3,691,902 595,600 16.1% 5,151 0 0 1 5,179 $16.59 2010 1q 105 3,691,902 600,751 16.3% (60,654) 0 0 0 0 $17.00 2009 4q 105 3,691,902 540,097 14.6% (14,307) 0 0 0 0 $17.57 2009 3q 105 3,691,902 525,790 14.2% 26,154 1 13,589 0 0 $17.60 2009 2q 104 3,678,313 538,355 14.6% (22,012) 0 0 1 13,589 $17.71

Source: CoStar Property®

24 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 25 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market NORTHWEST MARKET MARKET HIGHLIGHTS – CLASS “A, B & C” MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.250 18.0%

0.200 16.0%

14.0% 0.150

12.0% Percent Vacant 0.100 10.0% 0.050 8.0% Millions SF 0.000 6.0% (0.050) 4.0%

(0.100) 2.0%

(0.150) 0.0% 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $27.50 2.20

2.10 $27.00

2.00 $26.50

1.90 $26.00

1.80 Millions SF

Dollars/SF/Year $25.50 1.70

$25.00 1.60

1.50 $24.50 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2013 1q 435 16,253,632 1,844,626 11.3% 6,479 1 15,000 2 176,000 $27.02 2012 4q 434 16,238,632 1,836,105 11.3% 202,904 0 0 3 191,000 $26.15 2012 3q 434 16,238,632 2,039,009 12.6% 41,814 0 0 1 15,000 $26.38 2012 2q 434 16,238,632 2,080,823 12.8% (4,258) 0 0 1 15,000 $26.19 2012 1q 434 16,238,632 2,076,565 12.8% 135,157 0 0 1 15,000 $25.56 2011 4q 434 16,238,632 2,211,722 13.6% 51,093 0 0 1 15,000 $25.71 2011 3q 434 16,238,632 2,262,815 13.9% 48,980 0 0 1 15,000 $25.51 2011 2q 434 16,238,632 2,311,795 14.2% 50,512 0 0 0 0 $25.21 2011 1q 434 16,238,632 2,362,307 14.5% 47,827 0 0 0 0 $25.33 2010 4q 434 16,238,632 2,410,134 14.8% 73,771 0 0 0 0 $25.69 2010 3q 434 16,238,632 2,483,905 15.3% 11,177 0 0 0 0 $25.58 2010 2q 434 16,238,632 2,495,082 15.4% (88,000) 0 0 0 0 $25.41 2010 1q 434 16,238,632 2,407,082 14.8% 27,417 0 0 0 0 $25.33 2009 4q 434 16,238,632 2,434,499 15.0% 30,509 0 0 0 0 $25.73 2009 3q 434 16,238,632 2,465,008 15.2% 58,907 1 50,000 0 0 $25.89 2009 2q 433 16,188,632 2,473,915 15.3% (316,428) 1 46,970 1 50,000 $26.70

Source: CoStar Property®

24 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 25 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market ROUND ROCK MARKET MARKET HIGHLIGHTS – CLASS “A, B & C” MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.350 18.0%

0.300 16.0%

0.250 14.0%

0.200 12.0% Percent Vacant

0.150 10.0%

0.100 8.0% Millions SF 0.050 6.0%

0.000 4.0%

(0.050) 2.0%

(0.100) 0.0% 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $24.00 0.45

0.44 $23.50 0.43 $23.00 0.42

0.41 $22.50 0.40 Millions SF

0.39 Dollars/SF/Year $22.00

0.38 $21.50 0.37

0.36 $21.00 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2013 1q 339 4,919,353 436,524 8.9% 7,378 1 2,500 3 29,836 $21.98 2012 4q 338 4,916,853 441,402 9.0% 4,742 1 5,016 4 32,336 $22.65 2012 3q 337 4,911,837 441,128 9.0% (34,954) 1 3,750 4 25,352 $22.51 2012 2q 336 4,908,087 402,424 8.2% 55,569 4 54,913 5 29,102 $22.33 2012 1q 332 4,853,174 403,080 8.3% 316,912 3 7,500 7 71,175 $23.75 2011 4q 329 4,845,674 712,492 14.7% 33,702 1 4,036 9 73,659 $23.82 2011 3q 328 4,841,638 742,158 15.3% 1,384 0 0 9 73,945 $23.91 2011 2q 328 4,841,638 743,542 15.4% 31,785 0 0 4 14,996 $23.83 2011 1q 328 4,841,638 775,327 16.0% 7,163 0 0 4 14,996 $24.18 2010 4q 328 4,841,638 782,490 16.2% 32,505 1 19,086 4 14,996 $24.29 2010 3q 327 4,822,552 795,909 16.5% (10,663) 2 9,381 5 34,082 $23.77 2010 2q 325 4,813,171 775,865 16.1% 40,692 0 0 7 43,463 $24.47 2010 1q 325 4,813,171 816,557 17.0% 91,856 3 26,276 4 35,963 $25.03 2009 4q 322 4,786,895 882,137 18.4% (22,764) 0 0 5 35,657 $25.94 2009 3q 322 4,786,895 859,373 18.0% 30,059 2 142,413 3 26,276 $25.95 2009 2q 320 4,644,482 747,019 16.1% 18,584 0 0 5 168,689 $25.51

Source: CoStar Property®

26 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 27 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market SOUTH MARKET MARKET HIGHLIGHTS – CLASS “A, B & C” MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.300 12.0%

0.200 10.0%

0.100 8.0% Percent Vacant

0.000 6.0% Millions SF (0.100) 4.0%

(0.200) 2.0%

(0.300) 0.0% 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $27.00 0.80

0.70 $26.00

0.60 $25.00 0.50 $24.00 0.40

Millions SF 0.30

Dollars/SF/Year $23.00

0.20 $22.00 0.10

0.00 $21.00 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2013 1q 442 7,155,380 451,811 6.3% 226,333 0 0 1 3,000 $25.86 2012 4q 442 7,155,380 678,144 9.5% 28,222 0 0 0 0 $26.62 2012 3q 442 7,155,380 706,366 9.9% (252,582) 0 0 0 0 $26.54 2012 2q 442 7,155,380 453,784 6.3% 31,883 1 15,000 0 0 $23.39 2012 1q 441 7,140,380 470,667 6.6% (32,873) 0 0 1 15,000 $23.13 2011 4q 441 7,140,380 437,794 6.1% 83,072 0 0 1 15,000 $22.48 2011 3q 441 7,140,380 520,866 7.3% 53,934 0 0 1 15,000 $22.53 2011 2q 441 7,140,380 574,800 8.0% (73,351) 0 0 1 15,000 $23.05 2011 1q 441 7,140,380 501,449 7.0% 63,199 0 0 0 0 $22.93 2010 4q 441 7,140,380 564,648 7.9% (55,173) 2 12,137 0 0 $23.81 2010 3q 439 7,128,243 497,338 7.0% 54,557 1 8,955 2 12,137 $24.17 2010 2q 438 7,119,288 542,940 7.6% 74,164 0 0 3 21,092 $24.02 2010 1q 438 7,119,288 617,104 8.7% (27,303) 1 12,509 3 21,092 $24.41 2009 4q 437 7,106,779 577,292 8.1% (63,344) 0 0 2 21,464 $24.06 2009 3q 437 7,106,779 513,948 7.2% (7,911) 0 0 2 21,464 $24.44 2009 2q 437 7,106,779 506,037 7.1% 14,496 0 0 1 12,509 $25.26

Source: CoStar Property®

26 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 27 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market SOUTHEAST MARKET MARKET HIGHLIGHTS – CLASS “A, B & C” MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.200 16.0%

14.0% 0.150 12.0% Percent Percent Vacant 10.0% 0.100

8.0%

Millions SF 0.050 6.0%

4.0% 0.000 2.0%

(0.050) 0.0% 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $25.00 0.60

0.50 $20.00

0.40 $15.00

0.30 $10.00 Millions SF

0.20 Dollars/SF/Year

$5.00 0.10

0.00 $0.00 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2013 1q 77 3,455,283 487,363 14.1% 2,015 0 0 0 0 $20.50 2012 4q 77 3,455,283 489,378 14.2% (16,919) 4 183,800 0 0 $19.84 2012 3q 73 3,271,483 288,659 8.8% 13,411 0 0 4 183,800 $19.95 2012 2q 73 3,271,483 302,070 9.2% 403 0 0 4 183,800 $19.87 2012 1q 73 3,271,483 302,473 9.2% (3,902) 0 0 4 183,800 $15.49 2011 4q 73 3,271,483 298,571 9.1% (11,393) 0 0 3 11,000 $14.52 2011 3q 73 3,271,483 287,178 8.8% 8,258 0 0 0 0 $14.78 2011 2q 73 3,271,483 295,436 9.0% 36,905 0 0 0 0 $14.83 2011 1q 73 3,271,483 332,341 10.2% 39,328 0 0 0 0 $15.25 2010 4q 73 3,271,483 371,669 11.4% 10,054 0 0 0 0 $17.06 2010 3q 73 3,271,483 381,723 11.7% 13,261 0 0 0 0 $17.75 2010 2q 73 3,271,483 394,984 12.1% 26,330 0 0 0 0 $16.74 2010 1q 73 3,271,483 421,314 12.9% (21,464) 0 0 0 0 $16.56 2009 4q 73 3,271,483 399,850 12.2% (24,302) 0 0 0 0 $17.25 2009 3q 73 3,271,483 375,548 11.5% 79,052 0 0 0 0 $16.83 2009 2q 73 3,271,483 454,600 13.9% 54,426 0 0 0 0 $16.85

Source: CoStar Property®

28 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 29 AUSTIN – FIRST QUARTER 2013 FIRST QUARTER 2013 – AUSTIN Austin Office Market Austin Office Market SOUTHWEST MARKET MARKET HIGHLIGHTS – CLASS “A, B & C” MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.300 18.0%

0.250 16.0%

0.200 14.0%

0.150 Percent Vacant 12.0% 0.100 10.0% 0.050 8.0%

Millions SF 0.000 6.0% (0.050)

(0.100) 4.0%

(0.150) 2.0%

(0.200) 0.0% 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $27.00 1.20

$26.50 1.00

$26.00 0.80

$25.50 0.60 Millions SF

0.40 Dollars/SF/Year $25.00

0.20 $24.50

0.00 $24.00 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2013 1q 436 10,271,497 922,999 9.0% (129,715) 0 0 2 77,330 $26.51 2012 4q 436 10,271,497 793,284 7.7% 93,095 0 0 1 53,330 $25.66 2012 3q 436 10,271,497 886,379 8.6% 76,715 0 0 1 53,330 $24.89 2012 2q 436 10,271,497 963,094 9.4% 139,079 2 29,400 0 0 $24.85 2012 1q 434 10,242,097 1,072,773 10.5% 28,482 0 0 2 29,400 $25.00 2011 4q 434 10,242,097 1,101,255 10.8% 50,840 0 0 2 29,400 $25.75 2011 3q 434 10,242,097 1,152,095 11.2% 254,500 0 0 2 29,400 $25.66 2011 2q 434 10,242,097 1,406,595 13.7% 99,213 0 0 1 23,000 $25.49 2011 1q 434 10,242,097 1,505,808 14.7% (131,115) 0 0 1 23,000 $25.34 2010 4q 434 10,242,097 1,374,693 13.4% 213,488 1 55,000 1 23,000 $26.26 2010 3q 433 10,187,097 1,533,181 15.1% 140,650 1 3,355 2 78,000 $25.22 2010 2q 432 10,183,742 1,670,476 16.4% (56,102) 1 8,320 3 81,355 $24.88 2010 1q 431 10,175,422 1,606,054 15.8% (157,524) 1 22,434 2 63,320 $24.99 2009 4q 430 10,152,988 1,426,096 14.0% 110,380 0 0 3 85,754 $24.75 2009 3q 430 10,152,988 1,536,476 15.1% 113,175 2 57,888 2 30,754 $25.43 2009 2q 428 10,095,100 1,591,763 15.8% 10,973 1 41,184 4 88,642 $24.97

Source: CoStar Property®

28 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. ©2013 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 29 AUSTIN – FIRST QUARTER 2013 Austin Office Market WEST CENTRAL MARKET MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.100 9.0%

8.0% 0.080 7.0% 0.060 6.0% Percent Vacant

0.040 5.0%

0.020 4.0% Millions SF 3.0% 0.000 2.0% (0.020) 1.0%

(0.040) 0.0% 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $31.00 0.16 $30.50 0.14 $30.00 0.12 $29.50 0.10 $29.00 0.08

Millions SF 0.06 $28.50 Dollars/SF/Year

0.04 $28.00

0.02 $27.50

0.00 $27.00 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2013 1q 217 2,055,847 106,480 5.2% (11,410) 0 0 1 15,000 $29.32 2012 4q 217 2,055,847 95,070 4.6% 91,408 1 51,000 1 15,000 $29.26 2012 3q 216 2,004,847 135,478 6.8% (7,407) 0 0 2 66,000 $28.44 2012 2q 216 2,004,847 128,071 6.4% 8,089 0 0 2 66,000 $28.99 2012 1q 216 2,004,847 136,160 6.8% (15,272) 0 0 1 51,000 $30.77 2011 4q 216 2,004,847 120,888 6.0% 13,460 0 0 1 51,000 $31.07 2011 3q 216 2,004,847 134,348 6.7% (6,006) 0 0 0 0 $29.31 2011 2q 216 2,004,847 128,342 6.4% (12,857) 0 0 0 0 $28.37 2011 1q 216 2,004,847 115,485 5.8% 26,171 0 0 0 0 $28.40 2010 4q 216 2,004,847 141,656 7.1% 3,178 0 0 0 0 $25.59 2010 3q 216 2,004,847 144,834 7.2% (23,529) 0 0 0 0 $27.49 2010 2q 216 2,004,847 121,305 6.1% 31,591 0 0 0 0 $25.70 2010 1q 216 2,004,847 152,896 7.6% 10,862 0 0 0 0 $25.08 2009 4q 216 2,004,847 163,758 8.2% 2,704 0 0 0 0 $25.35 2009 3q 216 2,004,847 166,462 8.3% 173,219 2 201,975 0 0 $25.88 2009 2q 214 1,802,872 137,706 7.6% (6,061) 0 0 2 201,975 $25.75

Source: CoStar Property®

30 THE COSTAR OFFICE REPORT ©2013 COSTAR GROUP, INC. Spring :: 1Q 2013 Austin Publication Date: April 2013 Office Market Overview

The Austin Office Market Overview is a quarterly publication prepared by Transwestern Austin for our clients. If you would like receive copies of this publication on a quarterly basis, please contact any of our senior team members below, or send an email request to [email protected].

Transwestern Austin  901 South MoPac Expressway  Building 4, Suite 250  Austin, Texas 78746  512.328.5600  www.transwestern.net/austin

Transwestern Austin Kevin Roberts, President | Southwest (713) 270.3347 [email protected] Robert Gaston, Executive Vice President | Central Texas (512) 314.3554 [email protected] Becky Doolin, CPA, Senior Vice President | Financial Services (512) 314.3575 [email protected]

Agency Leasing and Tenant Advisory Mike Brown, Senior Vice President (512) 314.3552 [email protected] Britt Reed, Senior Vice President (512) 314.3577 [email protected] Greg Johnson, Vice President (512) 314.3570 [email protected] Luke Wheeler, Vice President (512) 314.3553 [email protected] Brandon Lester, Associate Vice President (512) 314.3576 [email protected] Will Stewart, Senior Associate (512) 314.3574 [email protected]

Central Texas Multifamily Services Jeff Rogers, Managing Director (512) 314.5207 [email protected] Chris Stutzman, Managing Director (512) 314.5203 [email protected]

Development Services Ty Puckett, Executive Vice President (512) 314.3572 [email protected] John Langton, LEED©-AP, Vice President (512) 328.5600 [email protected] Josh Delk, Associate Vice President (512) 314.3557 [email protected]

Investment Services Hale Umstattd, Senior Vice President | Managing Director (512) 314.3551 [email protected] Leah Gallagher, Managing Director (512) 314.3571 [email protected]

Structured Finance Craig Hutchens, Senior Vice President (512) 314.3555 [email protected]

Marketing & Research Karen Judson, Vice President (512) 314.3560 [email protected]

Property and Facilities Management Karisa Johnson, Vice President, RPA, CPM© (512) 314.3558 [email protected] Heidi Kelley, General Manager (512) 314.3559 [email protected] Kathryn Swift, RPA, General Manager (512) 314.3999 [email protected] Stephanie Vasquez, Property Manager (512) 314.5202 [email protected] Jenny Wheeler, Property Manager (512) 314.3960 [email protected] Sari Baker, Property Manager (512) 452.1636 [email protected] Barry Peterson, SMA, LEED©-AP, Senior Chief Engineer (512) 771.4355 [email protected]

901 South MoPac Expressway, Building 4, Suite 250, Austin, Texas 78746 | 512.328.5600 | www.transwestern.net/austin 901 South MoPac Expressway, Building 4, Suite 250, Austin, Texas 78746 | 512.328.5600 | www.transwestern.net/austin Transwestern Austin  901 South MoPac Expressway  Building 4, Suite 250  Austin, Texas 78746  512.328.5600  www.transwestern.net/austin