Austin’s office market seems to be leveling out

Research & Forecast Report

AUSTIN | OFFICEQ4 2016

Kaitlin Holm Research and Marketing Coordinator | Austin

Boots On The Ground Commentary by David Bremer

Our “Boots on the Ground” view point is the voice of our experts, who have broken down the market data and compared it to what they are seeing for themselves. This is their take on what the numbers actually mean for the Austin office market.

While Austin is still very much a Landlord’s market, it’s not the same feeding frenzy it was 6-12 months ago. Base rental rates stayed largely flat, while building operating expenses continued to increase (primarily due to increasing property taxes). Our team has seen a number of large office building transactions over the last few years at historically high prices per square foot. As long as this activity continues, Austin will continue to see higher property tax valuations.

Our local experts have also seen a great number of new subleases flooding the market in the past few months, with a majority of these opportunities being on or near the 360 corridor. These include some of the traditional “we don’t need the space” or “we outgrew our space” scenarios, but we’re also seeing a flight to areas that have less traffic or more walkability.

Subleases will continue to become more prevalent based on the new co-working phenomenon and a changing workforce that has millennials seeking “live, work, play” locations. In years past, short term subleases filled quickly with startups looking for furnished spaces and short lease terms. Now, with the influx of co-working options in Austin (short term, furnished, and also having the cool-factor), subleases face increased competition and are likely to sit on the market for a longer period.

TOTAL INVENTORY

49.8M SFTOTAL VACANCY

11.1%

Q4 NET ABSOPTION

401,539 SFYTD NET ABSORPTION

1.06M SFTOTAL UNDER

CONSTRUCTION

2.19M SFTOTAL PRELEASED

1.44M SFCBD CLASS A

$51.02SUBURBAN CLASS A

$34.25

AVERAGE RATE/SF

$33.18

-200,000

-100,000

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000Net Absorption New Supply Vacancy

*Rates inclusive of estimated operating expenses.

Future Forecast

Colliers believes that the current flattening of absorption and rates are likely to remain constant for the next 12 months barring either (i) Unexpected leasing activity from large international firms (examples include: Apple, Google, Facebook, and Indeed) or (ii) A significant slowdown in the national technology segment trickling down to Austin. Either would likely take 12-18 months to have a significant impact on leasing conditions.

Our local experts don’t see a major price correction on the horizon for hot submarkets like the Domain, East Austin, and the CBD. These markets suffer from lack of product, and new product will only be constructed if rates continue to justify the high construction costs for developers. There is a significant amount of new office space under construction, however over half of that space is preleased. While we might see some softness in office rates for these areas in the next 12-24 months, we don’t expect it to be significant.

Suburban markets will likely provide better value in the coming year, and market-wide, landlords are likely to be a little bit more “tenant friendly” on second generation space as it relates to lease terms, construction dollars, and concessions.

ANNUAL ABSORPTION, NEW SUPPLY, AND VACANCY

2

Austin Office Overview Austin’s office market is leveling out after a year of ups and downs. The net absorption was as low as negative 104,579 SF and as high as 111,087 SF. The average rent and vacancy has stayed about the same throughout 2016, but construction has slowed down. There is currently 2,190,618 SF of office space under construction and 1,108,431 SF of that is set to deliver in Q1 2017.

Two buildings totaling 214,409 SF delivered in the fourth quarter, and 201,679 SF of that was preleased. The largest building that delivered was the 189,000 SF, 100% preleased, Parmer 3.1, located in the Northeast submarket.

The citywide average rental rate decreased over the quarter by 2.1%, from $33.90 per SF to $33.18 per SF in the fourth quarter. Class A rental rates in Austin’s CBD increased by 0.2% over the quarter to $51.02 per SF from $50.90 per SF in the thrid quarter. Overall suburban Class A rental rates decreased, from $35.18 per SF to $34.25, over the quarter.

According to KDH (Kinghorn, Driver, Hough), Austin had the largest percentage increase of jobs in large Texas metros with a 4.2% increase, beating Dallas/Fort Worth by 1.1%. Austin added a total of 43,923 jobs in 2016, while Houston added 10,200, and San Antonio added 4,900. Austin was also named the second best performing large city in America, for 2016, by the Milken Institute. San Jose MSA was at the top of the list, while the Provo-Orem MSA was tied with Austin in the second spot. Austin was followed by San Francisco and then Dallas.

Vacancy & Availability

Austin’s citywide vacancy rate decreased marginally between quarters from 11.8% to 11.1%. The CBD Class A vacancy rate also decreased over the past two quarters from 6.9% in Q3 to 6.0% in Q4. The suburban Class A vacancy rate followed the trend and dropped quarter over quarter from 13.6% to 12.7%.

Overall suburban vacancy decreased over the quarter to 12.3%. Submarkets that saw a decrease in vacancy over the quarter include Cedar Park, Central, East, North/Domain, Northeast, Round Rock, and Southeast. The Southeast submarket saw the largest decrease in vacancy, falling from 32.6% to 16.1% over the quarter, which was due to Cenpatico moving into their 219,424 SF space at 5900 East Ben White Boulevard.

2 Austin Research & Forecast Report | Q4 2016 | Office | Colliers International

Market IndicatorsRelative to prior period

AnnualChange

Quarterly Change

Quarterly Forecast*

VACANCY

NET ABSORPTION

NEW CONSTRUCTION

UNDER CONSTRUCTION

*Projected

Summary Statistics Austin Office Market Q4 2015 Q3 2016 Q4 2016

Vacancy Rate 11.8% 11.8% 11.1%

Net Absorption (Million Square Feet) .429 .218 .401

New Construction (Million Square Feet) .321 1.322 .103

Under Construction (Million Square Feet) .818 1.151 2.190

Class A Vacancy Rate CBD Suburban

7.5%14.5%

6.9%13.6%

6.0%12.7%

Gross Asking Rents Per Square Foot Per Year

Average $31.14 $33.90 $38.18

CBD Class A $44.75 $50.90 $51.02

Suburban Class A $33.12 $35.18 $34.25

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

CBD Rents Suburban Rents

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

CBD Vacancy Suburban Vacancy

-200,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Net Absorption New Supply Vacancy

Absorption & Demand

Austin’s office market posted 401,539 square feet of positive net absorption in Q4 2016, which makes the total net absorption for 2016 1,067,018 square feet. The three submarkets that experienced the largest positive net absorption during 2016, include Southeast, Far Northwest, and Round Rock. A majority of the positive net absorption in the fourth quarter happened in the Southeast submarket, totalling 221,602 square feet of positive net absorption.

The second highest positive net absorption occurred in Class A space in the Northeast submarket, with 75,427 square feet absorbed in the fourth quarter. This can be attributed to a 184,500 square feet lease at Parmer 3.1.

The CBD submarket had the most tenants that moved into spaces 10,000 square feet or larger. The total square feet of leases signed in Q4 in the CBD was 180,282. The submarket with the most square feet leased in Q4 was North/Domain with 302,388 square feet. One of the tenants that entered the North/Domain submarket was Facebook, who signed the lease for their 102,438 square foot space at Domain 8, which is set to deliver in Q1 2017.

Rental Rates

According to CoStar, our data provider, Austin’s citywide average rental rate decreased slightly over the quarter from $33.90 per SF to $33.18. As expected, the highest rates across the Austin market in the second quarter were in CBD Class A buildings, where rental rates reached $51.02 per SF. Rental rates were also high in the West Central submarket and Central submarket where Class A rental rates reached $39.91 per SF and $40.15 per SF respectively.

Citywide Class B rental rates rose in Q4 to $28.12 per square foot from $27.70 in Q3. Class B rates in the CBD decreased by 4.8% over the quarter from $39.51 per square foot to $41.39 per square foot.

Citywide, Class B space saw 103,414 square feet of positive net absorption in the fourth quarter. Positive net absorption in Class B space occurred in the East, Far Northwest, Round Rock, South, and the Southeast submarkets.

3 Austin Research & Forecast Report | Q4 2016 | Office | Colliers International

UNEMPLOYMENT 11/15 11/16

AUSTIN 3.0% 3.2%

TEXAS 4.4% 4.2%

U.S. 4.8% 4.4%

JOB GROWTHAnnual Change

# of Jobs Added

AUSTIN 2.0% 19.5K

TEXAS 1.8% 212.6K

U.S. 1.6% 2.3M

CBD vs. SuburbanCLASS A OFFICE VACANCY

CLASS A OFFICE RENTS

Job Growth & Unemployment(not seasonally adjusted)

QUARTERLY ABSORPTION, NEW SUPPLY, AND VACANCY

44 Austin Research & Forecast Report | Q4 2016 | Office | Colliers International

Q4 2016 Top Office Lease TransactionsBUILDING NAME/ADDRESS SUBMARKET SF TENANT LEASE DATE

Parmer 3.1 Northeast 184,500 Home Depot Oct-16

11601 Alterra Pky North/Domain 136,584 Amazon4 Oct-16

11601 Alterra Pky North/Domain 102,438 Facebook4 Oct-16

9500 Amberglen Blvd Far Northwest 60,561 Oracle Oct-16

701 Brazos St CBD 56,702 Capital Factory1 Nov-16

12301 Research Blvd Northwest 49,312 HomeAway3 Dec-16

13620 Ranch Road 620 N Cedar Park 42,996 Unknown Dec-16

5707 Southwest Pky Southwest 42,671 Unknown Nov-16

11601 Alterra Pky North/Domain 34,146 Unknown Nov-16

500 W 2nd CBD 31,051 Unknown Nov-16

10801 N MoPac Expy North/Domain 29,220 Unknown Nov-16

500 W 2nd CBD 21,688 CBRE Nov-16

6500 River Place Blvd Northwest 21,497 Unknown Nov-16

3711 S MoPac Expy Southwest 21,262 Unknown Nov-16

835 W 6th CBD 21,218 Cirrus Logic Nov-16

3711 S MoPac Expy Southwest 20,190 MongoDB12 Nov-16

3711 S MoPac Expy Southwest 18,549 Unknown Nov-16

200 W Cesar Chavez St CBD 17,405 Unknown3 Oct-16

11055 N IH-35 Northeast 14,770 Unknown1 Oct-16

6500 River Place Blvd Northwest 12,401 Ambiq Micro Nov-16

Leasing ActivityAustin’s office leasing activity recorded 1,006,984 SF in Q4 2016. Major transactions this quarter included a new lease for Oracle at 9500 Amberglen Boulevard and a renewal for Capital Factory.

1 Renewal 2 Expansion3 Sublease4 Pre-lease/proposed or under construction

Q4 2016 Significant Sales Transactions – (100,000 SF or greater)BUILDING NAME SUBMARKET RBA (SF) YEAR BUILT BUYER SELLER SALE PRICE $/SF CLOSED

823 Congress Ave CBD 181,381 1970 Brickman Cielo Realty Partners $63,000,000.00 $347.34 Oct-16

11501 Alterra Pky* North/Domain 221,973 2014 TIER REIT, Inc. Shorenstein Properties, LLC $49,453,642.00 $445.58 Dec-16

10801 N MoPac Expy North/Domain 196,380 2001 Unknown Piedmont Office Realty Trust, Inc. $49,250,000.00 $250.79 Dec-16

10800 Pecan Park Blvd Far Northwest 136,444 2009 Mark IV Capital, Inc. Equus Capital Partners, Ltd $35,500,000.00 $260.18 Nov-16

7800 Shoal Creek Blvd Central 151,395 1974 Seamless Capital, LP Equity Commonwealth Management, LLC. $29,200,000.00 $192.87 Oct-16

11800 Domain Blvd* North/Domain 114,665 2014 TIER REIT, Inc. Shorenstein Properties, LLC $25,546,358.00 $445.58 Dec-16

Sales ActivityAustin’s office investment sales activity included ten sales transactions (including two portfolio sales) with an average sale price of $302 per SF.

Sources: CoStar and Real Capital Analytics*Part of a portfolio

5 Austin Research & Forecast Report | Q4 2016 | Office | Colliers International

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Chart Title–One Line

Chart TitleSUBHEAD 1 SUBHEAD 1 SUBHEAD 1 SUBHEAD 1

Body

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

(SF)RENTAL

RATE

CLASS # OF BLDGS TOTAL (SF) (SF) RATE

(%) (SF) RATE (%)

TOTAL (SF) Q4-2016 Q3-2016 Q4-2016 Q3-2016 AVG ($/

SF)

CBD

A 28 6,987,104 397,818 5.7% 22,392 0.3% 420,210 6.0% 6.9% 62,170 166,673 $51.02

B 34 2,849,450 206,869 7.3% 12,532 0.4% 219,392 7.7% 6.5% -32,824 -12,879 $41.39

C 10 605,277 4,998 0.8% 14,800 2.4% 19,798 3.3% 5.9% 15,978 1,447 $24.59

Total 73 10,441,831 609,685 5.8% 49,715 0.5% 659,400 6.3% 6.7% 45,324 155,241 $48.18

SUBURBAN

A 176 19,742,368 2,094,054 10.6% 406,892 2.1% 2,500,946 12.7% 13.6% 204,586 48,692 $34.25

B 326 16,621,467 1,989,664 12.0% 150,406 0.9% 2,140,070 12.9% 13.7% 136,238 99,123 $26.77

C 60 3,060,124 223,336 7.3% 3,252 0.1% 226,588 7.4% 7.9% 15,391 -84,820 $20.59

Total 562 39,423,959 4,307,054 10.9% 560,550 1.4% 4,867,604 12.3% 13.2% 356,215 62,995 $30.49

OVERALL

A 204 26,729,472 2,491,872 9.3% 429,284 1.6% 2,921,156 10.9% 11.8% 266,756 215,365 $37.58

B 361 19,470,917 2,196,533 11.3% 162,929 0.8% 2,359,462 12.1% 12.6% 103,414 86,244 $28.12

C 70 3,665,401 228,334 6.2% 18,052 0.5% 246,386 6.7% 7.6% 31,369 -83,373 $20.89

Total 635 49,865,790 4,916,739 9.9% 610,265 1.2% 5,527,004 11.1% 11.8% 401,539 218,236 $33.18

INVENTORY DIRECT VACANCY

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

RATE

CLASS # OF BLDGS. TOTAL (SF) (SF) RATE

(%) (SF) RATE (%)

TOTAL (SF) Q4-2016 Q3-2016 Q4-2016 Q3-2016 AVG

($/SF)

CEDAR PARK

A 4 459,160 192,474 42.2% 0 0.0% 192,474 42.2% 42.2% 3,754 6,113 $26.60

B 2 112,000 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 -

Total 6 568,150 192,474 33.9% 0 0.0% 192,474 33.9% 34.5% 3,754 6,113 $26.60

CENTRAL

A 4 520,288 28,613 5.5% 4,317 0.8% 32,930 6.3% 6.3% -411 64,467 $40.15

B 33 1,869,181 183,309 9.8% 5,540 0.3% 188,849 10.1% 10.0% -2,549 -11,185 $26.20

C 16 939,288 9,356 1.0% 0 0.0% 9,356 1.0% 1.4% 4,106 -5,703 $20.19

Total 53 3,328,757 221,278 6.6% 9,857 0.3% 231,135 6.9% 7.0% 1,146 47,579 $26.27

EAST

A 2 104,821 6,933 6.6% 0 0.0% 6,933 6.6% 14.8% 8,562 -10,958 $33.97

B 15 1,385,953 453,031 32.7% 0 0.0% 453,031 32.7% 33.9% 17,145 103,280 $33.13

C 5 202,765 29,050 14.3% 0 0.0% 29,050 14.3% 14.3% 0 0 $19.98

Total 22 1,693,539 489,014 28.9% 0 0.0% 489,014 28.9% 30.4% 25,707 92,322 $31.71

FAR NORTHEAST

B 1 23,408 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 -

Total 1 23,408 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 -

FAR NORTHWEST

A 13 1,997,783 162,244 8.1% 73,151 3.7% 235,395 11.8% 9.4% -47,433 4,923 $32.56

B 9 347,418 23,780 6.8% 132 0.0% 23,912 6.9% 7.2% 962 -1,814 $25.97

C 1 21,964 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 $15.00

Total 23 2,367,165 186,024 7.9% 73,283 3.1% 259,307 11.0% 9.0% -46,471 3,109 $31.02

Austin Suburban Office Market Summary

Austin Office Market Summary (CBD, Suburban, & Overall)

6 Austin Research & Forecast Report | Q4 2016 | Office | Colliers International

Austin Suburban Office Market Summary - Continued

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

(SF)RENTAL

RATE

CLASS # OF BLDGS. TOTAL (SF) (SF) RATE

(%) (SF) RATE (%)

TOTAL (SF) Q4-2016 Q3-2016 Q4-2016 Q3-2016 AVG

($/SF)

NORTH/DOMAINA 14 1,886,748 260,598 13.8% 1,927 0.1% 262,525 13.9% 22.0% -74,434 152,645 $33.81B 30 1,715,335 128,010 7.5% 35,887 2.1% 163,897 9.6% 8.3% -21,200 -16,884 $27.28C 1 24,759 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 -Total 45 3,626,842 388,608 10.7% 37,814 1.0% 426,422 11.8% 15.4% 131,445 -91,318 $31.22NORTHEASTA 5 414,546 41,913 10.1% 0 0.0% 41,913 10.1% 28.3% 75,427 -5,566 $25.00B 19 1,347,629 99,480 7.4% 14,167 1.1% 113,647 8.4% 5.5% -39,325 72,055 $21.36C 8 276,413 104,739 37.9% 0 0.0% 104,739 37.9% 43.6% 15,780 -62,299 $19.11Total 32 2,038,602 246,132 12.1% 14,167 0.7% 260,299 12.8% 15.3% 51,822 4,190 $22.02NORTHWESTA 73 6,950,824 492,870 7.1% 129,665 1.9% 622,535 9.0% 7.9% -76,273 135,773 $34.73B 96 4,205,563 499,049 11.9% 52,559 1.2% 551,608 13.1% 12.2% -36,964 -57,092 $28.57C 5 428,563 5,960 1.4% 0 0.0% 5,960 1.4% 1.1% -1,143 -3,217 $25.73Total 174 11,584,950 997,879 8.6% 182,224 1.6% 1,180,103 10.2% 9.6% -114,380 75,464 $31.88ROUND ROCKA 3 308,130 37,305 12.1% 0 0.0% 37,305 12.1% 9.0% 13,678 3,108 $31.50B 12 428,289 30,727 7.2% 2,743 0.6% 33,470 7.8% 11.1% 14,220 108,157 $26.77C 3 147,466 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 -Total 18 883,885 68,032 7.7% 2,743 0.3% 70,775 8.0% 8.5% 27,898 111,265 $28.32SOUTHA 5 395,493 29,678 7.5% 8,929 2.3% 38,607 9.8% 10.2% 1,779 -17,517 $35.14B 23 1,131,499 82,840 7.3% 0 0.0% 82,840 7.3% 7.6% 3,342 -36,216 $25.53C 13 712,703 52,739 7.4% 3,252 0.5% 55,991 7.9% 7.0% -6,234 -22,315 $24.66Total 41 2,239,695 165,257 7.4% 12,181 0.5% 177,438 7.9% 7.9% -1,113 -76,048 $26.70SOUTHEAST

B 10 1,177,037 215,602 18.3% 0 0.0% 215,602 18.3% 36.8% 217,740 1,720 $23.26C 4 161,933 0 0.0% 0 0.0% 0 0.0% 2.2% 3,629 1,371 $20.00Total 14 1,338,970 215,602 16.1% 0 0.0% 215,602 16.1% 32.6% 221,369 3,091 $23.14SOUTHWESTA 49 6,169,555 820,050 13.3% 188,903 3.1% 1,008,953 16.4% 17.5% 72,858 -86,805 $37.72B 72 2,695,441 256,112 9.5% 37,283 1.4% 293,395 10.9% 10.5% -9,955 -61,921 $29.55C 3 94,138 20,214 21.5% 0 0.0% 20,214 21.5% 22.0% 531 -90 $26.11Total 124 8,959,134 1,096,376 12.2% 226,186 2.5% 1,322,562 14.8% 14.5% 63,434 -148,816 $35.49WEST CENTRALA 4 538,030 21,376 4.0% 0 0.0% 21,376 4.0% 4.0% 0 29,588 $39.91B 4 182,700 17,724 9.7% 2095 1.1% 19,819 10.8% 6.9% -7,178 -977 $30.09C 1 50,132 1,278 2.5% 0 0.0% 1,278 2.5% 0.0% -1,278 7,433 -Total 9 770,862 40,378 5.2% 2,095 0.3% 42,473 5.5% 4.4% -8,456 36,044 $37.80

7 Austin Research & Forecast Report | Q4 2016 | Office | Colliers International

Office Development Pipeline2,190,618 square feet of office space was under construction during Q4 2016. Two buildings totaling 214,409 square feet delivered in Q4 including Parmer 3.1, a 100% leased 189,000 square foot building in the Northeast submarket. Two proposed buildings were given the green light to begin construction this quarter.

BUILDING NAME ADDRESS SUBMARKET SF PRE-LEASED DEVELOPER EST.

DELIVERY

3114 S Congress Ave 3114 S Congress Ave South 32,000 100.0% Unknown Jan-17

500 W 2nd St 500 W 2nd St CBD 500,512 55.3% Trammel Crow Co Jan-17

Building 1 7601 Southwest Pky Southwest 87,500 66.7% Lincoln Property Company Feb-17

Building 2 7601 Southwest Pky Southwest 87,500 100.0% Lincoln Property Company Feb-17

305 Denali Pass 305 Denali Pass Cedar Park 12,500 100.0% Unknown Feb-17

Domain 8 11601 Alterra Parkway North/Domain 291,058 82.1% Endeavor Real Estate Group Feb-17

Diamond Building Aldrich St & Simond Ave East 57,761 35.6% Catellus Development Corporation

Mar-17

uShip 205 E Riverside Dr South 39,600 100.0% Chioco Designs Mar-17

Galleria Oaks I 3297 Ranch Road 620 S Southwest 74,532 51.4% Unknown May-17

Galleria Oaks II 3297 Ranch Road 620 S Southwest 74,532 51.4% Unknown May-17

9811 Vikki 9811 Vikki Ter Southwest 22,000 64.1% Unknown May-17

2301 E Riverside Dr 2301 E Riverside Dr Southeast 29,205 0.0% Unknown Jun-17

University of Texas Systems 702 Colorado St CBD 342,000 100.0% Unknown Jul-17

Shoal Creek Walk 835 W 6th St CBD 218,180 63.4% Schlosser Development Jul-17

Overlook at Barton Creek 317 Grace Ln Southwest 53,091 0.0% Unknown Jul-17

Building 2 5100 W US HWY 290 SVRD WB

Southwest 27,199 43.7% Unknown Aug-17

Paloma Ridge Building C 13620 Ranch Road 620 N Cedar Park 112,500 0.0% Unknown Oct-17

801 Barton Springs Rd 801 Barton Springs Rd South 90,500 100.0% Generational Commercial Properties

Dec-17

The Reserve at Oak Hill 6804 Old Bee Caves Rd Southwest 38,448 0.0% Unknown Dec-17

QUOTED GROSS RENTAL RATES FOR EXISTING TOP PERFORMING OFFICE BUILDINGS

BUILDING NAME ADDRESS SUBMARKET RBA (SF) YEAR BUILT

% LEASED

AVAIL. SF

RENT ($/SF) OWNER

Frost Bank Tower 401 Congress Ave CBD 535,078 2003 96.2% 37,299 $69.38 CalSTRS

One Eleven 111 Congress Ave CBD 518,385 1985 91.4% 72,192 $64.83 Cousins Properties Inc

One American Center 600 Congress Ave CBD 503,951 1984 98.2% 405 $53.93 CalSTRS

300 West Sixth 300 W 6th St CBD 454,225 2001 92.3% 44,887 $63.78 CalSTRS

301 Congress 301 Congress Ave CBD 446,839 1985 95.4% 94,503 $62.52 PGIM Real Estate

100 Congress 100 Congress Ave CBD 411,536 1985 95.1% 45,454 $52.61 Metlife, Inc.

816 Congress 816 Congress Ave CBD 433,024 1983 96.1% 41,057 $55.52 Cousins Properties, Inc.

Chase Tower 221 W 16th St CBD 389,503 1972 99.1% 80,749 $60.90 Spire Realty Group, LP

7700 W Parmer Ln - Bldg. B 7700 W Parmer Ln - Bldg.B Far Northwest 335,138 1999 90.6% 31,500 $34.98 Accesso Partners, LLC

Austin Centre 701 Brazos St CBD 326,335 1986 90.5% 31,146 $48.42 Sidra Real Estate, Inc.

Note: Avail. SF includes direct and sublet space as well as any future available space listed. Source: CoStar Property

8 North American Research & Forecast Report | Q4 2014 | Office Market Outlook | Colliers International

Copyright © 2015 Colliers International.The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.

Colliers International | Market000 Address, Suite # 000 Address, Suite #+1 000 000 0000colliers.com/<<market>>

8 North American Research & Forecast Report | Q4 2014 | Office Market Outlook | Colliers International

Copyright © 2015 Colliers International.The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.

Colliers International | Austin111 Congress Avenue, Suite 750 Austin, Texas 78701+1 512 539 3000colliers.com/texas/austin

FOR MORE INFORMATIONKaitlin HolmResearch and Marketing Coordinator | Austin+1 512 539 3021kaitlin.holm@colliers.com

Q4 2016 Office Highlights