Market Insights Dallas/Fort Worth 1Q 2021 - OFFICE Bradford Commercial Real Estate Services 3100 McKinnon Street, Suite 400 Dallas, Texas 75201 DALLAS-FORT WORTH OFFICE MARKET INSIGHTS 4Q2019 Table of Contents BRADFORD DALLAS-FORT WORTH OFFICE TEAM 1 DALLAS - FORT WORTH OVERALL MARKET INSIGHT 2 SUBMARKET EXPERTISE • Central Expressway • Dallas CBD • Fort Worth CBD 3 • Far North Dallas • White Rock/East Dallas • Las Colinas • LBJ Freeway • Mid Cities • Preston Center • Stemmons • Richardson/Plano • Uptown-Turtle Creek The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 1 DFW OFFICE COVERAGE BinformedOFFICE MARKET EXPERTS Melanie Hughes Richmond Collinsworth Erik Blais Jared Laake Senior Vice President First Vice President First Vice President Vice President 972.776.7046 972.776.7041 817.921.8179 972.776.7045 Dallas Dallas Fort Worth Dallas Susan Singer, CCIM Paul Richter Shane Benner Executive Vice President Vice President Vice President Brokerage Services 972.776.7036 817.921.8174 972.776.7043 Dallas Fort Worth Dallas • Bradford Corporate Office • Bradford Field Offices Bret Cooper Elizabeth Robertson Kyle Espie Market Director Market Director Senior Associate 972.776.7035 972.776.7199 972.776.7070 Dallas Dallas Dallas 2 3 Existing Inventory Vacancy Delivered Inventory Under Construction Quoted Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Rates Central Expressway Office Vacancy Central Expressway Office Net Absorption Construction 25.0% 2017 Q4 95 11,715,997 1,460,232 12.5% (62,474) 0 0 0 0 $23.80 150,000 2018 Q1 95 11,715,997 1,691,523 14.4% (231,291) 0 0 0 0 $24.62 100,000 2018 Q2 95 11,715,997 1,636,233 14.0% 55,290 0 0 0 0 $24.21 20.0% Existing Inventory Vacancy Delivered Inventory Under Construction 50,000 2018 Q3 95 11,715,997 1,747,191 14.9% (110,958) 0 0 0 Quoted 0 $24.64 Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Rates Central Expressway Office Vacancy Central Expressway Office0 Net Absorption 2018 Q4 95 11,715,997 1,752,961 15.0% (5,770) 0 0 Construction0 0 $24.56 15.0% 25.0% (50,000) 20172019 Q4 Q1 9595 11,715,99711,715,9971,460,2321,611,02912.5% 13.8%(62,474) 141,932 0 0 0 0 0 0 $23.80 0 $24.19 150,000 2018 Q1 95 11,715,997 1,691,523 14.4% (231,291) 0 0 0 0 $24.62 (100,000) 2019 Q2 95 11,715,997 1,644,301 14.0% (33,272) 0 0 0 0 $24.87 10.0% 100,000 2018 Q2 95 11,715,997 1,636,233 14.0% 55,290 0 0 0 0 $24.21 20.0% 2019 Q3 95 11,715,997 1,718,370 14.7% (74,069) 0 0 0 0 $25.28 50,000 (150,000) CENTRAL EXPRESSWAY2018 Q3 95 11,715,997 1,747,191 14.9% (110,958) 0 0 0 0 $24.64 2019 Q4 95 11,715,997 1,735,143 14.8% (16,773) 0 0 1 30,000 $25.28 0 (200,000) 2018 Q4 95 11,715,997 1,752,961 15.0% (5,770) 0 0 0 0 $24.56 15.0% 5.0% (50,000) OFFICE OVERALL MARKET INSIGHTS 20192020 Q1 Q1 9595 11,715,99711,715,9971,611,0291,800,25613.8% 15.4%141,932 (65,113)0 0 0 0 0 1 $24.1930,000 $25.05 (250,000) SUBMARKET20192020 Q2 Q2 9595 11,715,99711,715,9971,644,3011,881,59814.0% 16.1%(33,272) (81,342)0 0 0 0 0 2 $24.87143,600 $24.70 (100,000) (300,000) 10.0% 0.0% 20192020 Q3 Q3 9595 11,715,99711,715,9971,718,3702,157,50814.7% 18.4%(74,069) (275,910)0 0 0 0 0 2 $25.28143,600 $24.60 (150,000) 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 (same criterias as prior market reports) 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 Q4 95 11,715,997 1,735,143 14.8% (16,773) 0 0 1 30,000 $25.28 (200,000) DFW Office Markets (A, B, C) Binformed 2020 Q4 95 11,715,997 2,220,066 18.9% (62,558) 0 0 2 143,600 $24.645.0% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 (250,000) 20202021 Q1 Q1 9596 11,715,99711,829,5971,800,2562,334,25415.4% 19.7%(65,113) (588) 0 01 113,6001 30,0001 $25.0530,000 $24.39 Existing Inventory Vacancy Delivered Inventory Under Construction 2020 Q2 95 11,715,997 1,881,598 16.1% (81,342) 0 0 2 143,600 $24.70 (300,000) Net Quoted 0.0% 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 Period Under Overall DFW Office Vacancy Overall DFW Office Net Absorption 2020 Q3 95 11,715,997 2,157,508 18.4% (275,910) 0 0 2 143,600 $24.60 # Bldgs Total RBA Vacant SF Vacant % Absorption # Bldg Delivered # Bldgs Rates 2017 2018 2018 2018 2018 2019Central2019 2019 2019Expressway2020 2020 2020 2020Office2021 Quoted RatesQ4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4CentralQ1 Q2 Q3ExpresswayQ4 Q1 Office Construction Construction Central Expressway Overview 2020 Q4 95 11,715,997 2,220,066 18.9% (62,558) 0 0 2 143,600 $24.64 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 Q4 2,743 265,365,495 49,625,540 18.7% 504,227 16 1,680,864 36 7,541,195 $20.89 25.0% 2,000,000 The Central Expressway Submarket 2021 Q1Absorption96 11,829,597vs Previous2,334,254 Qtr 19.7% vs 12(588) Months Ago 1 113,600 1 30,000 $24.39 $25.50 2018 Q1 2,752 267,411,514 49,960,740 18.7% 1,725,459 9 2,046,019 31 6,035,401 $20.98 1,500,000 stretches along the North Central 8,000,000 2018 Q2 2,763 269,106,205 51,545,880 19.2% (456,842) 9 1,622,598 26 4,784,048 $21.01 20.0% (588) -62,558 -65,113 1,000,000 Expressway, with its southernmost Central Expressway Office Quoted Rates Central Expressway Office Construction 2018 Q3 2,771 270,100,982 52,026,878 19.3% 517,035 8 994,777 22 4,077,594 $21.21 500,000 Vacancy vs Previous Qtr vs 12 Months Ago 7,000,000 2018 Q4 2,773 270,556,439 52,471,367 19.4% 10,968 2 455,457 24 3,979,708 $21.25 15.0% 0 point starting at the Dallas CBD and its Absorption vs Previous Qtr vs 12 Months Ago $25.50 $25.00 19.7% 18.9% 15.4% 8,000,000 6,000,000 2019 Q1 2,781 271,723,094 52,178,338 19.2% 1,459,684 8 1,166,655 22 3,239,436 $21.23 northernmost point ending at the LBJ (588) -62,558 -65,113 (500,000) U/C SF vs Previous Qtr vs 12 Months Ago 2019 Q2 2,787 272,082,227 51,794,656 19.0% 737,755 6 359,133 23 3,276,378 $21.37 Vacancy 7,000,000 10.0% (same criterias as prior market reports) (1,000,000) Freeway. Virtually all of the submarket’s vs Previous Qtr vs 12 Months Ago 5,000,000 2019 Q3 2,791 272,594,030 53,303,123 19.6% (996,664) 4 511,803 25 3,446,466 $21.55 (1,500,000) 30,000 143,600 30,000 $25.00 inventory runs along US 75. The submarket 19.7% 18.9% 15.4% $24.50 6,000,000 2019 Q4 2,796 274,041,548 53,643,123 19.6% 1,107,518 5 1,447,518 23 2,566,562 $21.38 Delivered SF 5.0% DFW Office Markets (A, B, C) (2,000,000) U/C SF vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 Ago Months Ago 4,000,000 2020 Q1 2,800 274,162,899 54,491,670 19.9% (727,196) 4 121,351 21 2,675,359 $21.68 has a heavy concentration of financial 5,000,000 (2,500,000) 30,000113,600 143,600 0 30,000 0 2020 Q2 2,802 274,584,857 55,815,912 20.3% (902,284) 2 421,958 25 2,772,526 $21.66 (3,000,000) services, telecom, and tech firms. As $24.50 3,000,000 0.0% Existing Inventory Vacancy 2017 2018 2018 2018 2018Delivered2019 2019 2019 Inventory2019 2020 2020 2020 2020Under2021 Construction DeliveredQuoted Rates SF vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 Ago Months Ago $24.00 4,000,000 2020 Q3 2,810 275,205,248 59,027,571 21.4% (2,591,268) 8 620,391 18 2,173,735 $21.74 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 Net a whole,Quoted it offers a large amount of Period Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Under Overall DFW113,600 Office Vacancy 0 0 Overall DFW Office Net Absorption 2,000,000 2020 Q4 2,814 275,389,315 60,280,294 21.9% (1,068,656) 4 184,067 14 1,989,668 $21.95 # Bldgs Total RBA Vacant SF Vacant % Absorption # Bldg Delivered # Bldgs investment-gradeRates property—about half of 24 25 25 3,000,000 Quoted Rates $24.00 2021 Q1 2,817 275,587,536 63,343,362 23.0% (2,864,847) 3 198,221 15 2,438,449 $21.94 Construction vs Previous Qtr vs 12 Months Ago the submarket’s RBA is rated25.0% as 4 & 5 Star.