costar office report - texas a&m university office market d 1the costar office report ©2015...

Houston Office MarketY e a r - E n d 2 0 1 4

The CoStarOffice Report

Houston Office Market

©2015 CoStar Group, Inc. The CoStar Office Report A

Year-End 2014 – Houston

Table of ContentsTable of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AMethodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BTerms & Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CMarket Highlights & Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1CoStar Markets & Submarkets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Inventory & Development Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Inventory & Development AnalysisSelect Top DeliveriesSelect Top Under Construction Properties

Figures at a Glance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Figures at a Glance by Class & MarketFigures at a Glance by Class & SubmarketFigures at a Glance Grouped by CBD vs SuburbanHistorical Figures at a Glance

Leasing Activity Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Select Top Lease Transactions

Sales Activity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Sales Activity AnalysisSelect Top Sales TransactionsAustin County Market

Analysis of Individual CoStar Submarket Clusters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Bellaire MarketDowntown MarketE Fort Bend Co/Sugar Land MarketFM 1960 MarketGreenway Plaza MarketGulf Freeway/Pasadena MarketI-10 East MarketKaty Freeway MarketKingwood/Humble MarketNASA/Clear Lake MarketNorth Belt MarketNortheast Near MarketNorthwest MarketRichmond/Fountainview MarketSan Felipe/Voss MarketSan Jacinto County MarketSouth MarketSouth Hwy 35 MarketSouth Main/Medical Center MarketSouthwest MarketWest Loop MarketWestchase MarketWoodlands Market


B The CoStar Office Report ©2015 CoStar Group, Inc.

Houston – Year-End 2014


©2015 CoStar Group, Inc. The CoStar Office Report C


MethodologyThe 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.

© Copyright 2015 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.

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Terms & DefinitionsAvailability Rate: The ratio of available space to total rentable space, calculated by dividing the total available square feet by the total rentable square feet.Available Space: The total amount of space that is currently being marketed as available for lease in a given time period. It includes any space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date. Build-to-Suit: A term describing a particular property, developed specifically for a certain tenant to occupy, with structural features, systems, or improvement work designed specifically for the needs of that tenant. A build-to-suit can be leased or owned by the tenant. In a leased build-to-suit, a tenant will usually have a long term lease on the space.Buyer: The individual, group, company, or entity that has purchased a commercial real estate asset.Cap Rate: Short for capitalization rate. The Cap Rate is a calculation that reflects the relationship between one year’s net operating income and the current market value of a particular property. The Cap Rate is calculated by dividing the annual net operating income by the sales price (or asking sales price).CBD: Abbreviation for Central Business District. (See also: Central Business District)Central Business District: The designations of Central Business District (CBD) and Suburban refer to a particular geographic area within a metropolitan statistical area (MSA) describing the level of real estate development found there. The CBD is characterized by a high density, well organized core within the largest city of a given MSA.Class A: A classification used to describe buildings that generally qualify as extremely desirable investment-grade properties and com-mand the highest rents or sale prices compared to other buildings in the same market. Such buildings are well located and provide efficient tenant layouts as well as high quality, and in some buildings, one-of-a-kind floor plans. They can be an architectural or historical landmark designed by prominent architects. These buildings contain a modern mechanical system, and have above-average maintenance and management as well as the best quality materials and workmanship in their trim and interior fittings. They are generally the most attractive and eagerly sought by investors willing to pay a premium for quality.Class B: A classification used to describe buildings that generally qualify as a more speculative investment, and as such, command lower rents or sale prices compared to Class A properties. Such buildings offer utilitarian space without special attractions, and have ordinary design, if new or fairly new; good to excellent design if an older non-landmark building. These buildings typically have average to good maintenance, management and tenants. They are less appealing to tenants than Class A properties, and may be deficient in a number of respects including floor plans, condition and facilities. They lack prestige and must depend chiefly on a lower price to attract tenants and investors.Class C: A classification used to describe buildings that generally qualify as no-frills, older buildings that offer basic space and command lower rents or sale prices compared to other buildings in the same market. Such buildings typically have below-average maintenance and management, and could have mixed or low tenant prestige, inferior elevators, and/or mechanical/electrical systems. These build-ings lack prestige and must depend chiefly on a lower price to attract tenants and investors.Construction Starts: Buildings that began construction during a specific period of time. (See also: Deliveries)Contiguous Blocks of Space: Space within a building that is, or is able to be joined together into a single contiguous space.Deliveries: Buildings that complete construction during a specified period of time. In order for space to be considered delivered, a certifi-

cate of occupancy must have been issued for the property.Delivery Date: The date a building completes construction and receives a certificate of occupancy.Developer: The company, entity or individual that transforms raw land to improved property by use of labor, capital and entrepreneurial efforts. Direct Space: Space that is being offered for lease directly from the landlord or owner of a building, as opposed to space being offered in a building by another tenant (or broker of a tenant) trying to sublet a space that has already been leased.Existing Inventory: The square footage of buildings that have received a certificate of occupancy and are able to be occupied by tenants. It does not include space in buildings that are either planned, under construction or under renovation.Flex Building: A type of building designed to be versatile, which may be used in combination with office (corporate headquarters), research and development, quasi-retail sales, and including but not limited to industrial, warehouse, and distribution uses. A typical flex building will be one or two stories with at least half of the rentable area being used as office space, have ceiling heights of 16 feet or less, and have some type of drive-in door, even though the door may be glassed in or sealed off.Full Service Rental Rate: Rental rates that include all operating expenses such as utilities, electricity, janitorial services, taxes and insur-ance.Gross Absorption: The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing Activity, which is the sum of all space leased over a certain period of time. Unless otherwise noted Gross Absorption includes direct and sublease space.Growth in Inventory: The change in size of the existing square footage in a given area over a given period of time, generally due to the construction of new buildings.Industrial Building: A type of building adapted for such uses as the assemblage, processing, and/or manufacturing of products from raw materials or fabricated parts. Additional uses include warehous-ing, distribution, and maintenance facilities. The primary purpose of the space is for storing, producing, assembling, or distributing product.Landlord Rep: (Landlord Representative) In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the owner/landlord is referred to as the Landlord Rep.Leased Space: All the space that has a financial lease obligation. It includes all leased space, regardless of whether the space is currently occupied by a tenant. Leased space also includes space being offered for sublease.Leasing Activity: The volume of square footage that is commit-ted to and signed under a lease obligation for a specific building or market in a given period of time. It includes direct leases, subleases and renewals of existing leases. It also includes any pre-leasing activity in planned, under construction, or under renovation buildings.Market: Geographic boundaries that serve to delineate core areas that are competitive with each other and constitute a generally accepted primary competitive set of areas. Markets are building-type specific, and are non-overlapping contiguous geographic designations having a cumulative sum that matches the boundaries of the entire Region (See also: Region). Markets can be further subdivided into Submarkets. (See also: Submarkets)Multi-Tenant: Buildings that house more than one tenant at a given time. Usually, multi-tenant buildings were designed and built to accommodate many different floor plans and designs for different


D The CoStar Office Report ©2015 CoStar Group, Inc.

Houston – Year-End 2014 Year-End 2014 – Houston


©2015 CoStar Group, Inc. The CoStar Office Report 1

tenant needs. (See also: Tenancy).Net Absorption: The net change in occupied space over a given period of time. Unless otherwise noted Net Absorption includes direct and sublease space.Net Rental Rate: A rental rate that excludes certain expenses that a tenant could incur in occupying office space. Such expenses are expected to be paid directly by the tenant and may include janitorial costs, electricity, utilities, taxes, insurance and other related costs.New Space: Sometimes called first generation space, refers to space that has never been occupied and/or leased by a tenant.Occupied Space: Space that is physically occupied by a tenant. It does not include leased space that is not currently occupied by a tenant.Office Building: A type of commercial building used exclusively or primarily for office use (business), as opposed to manufacturing, warehousing, or other uses. Office buildings may sometimes have other associated uses within part of the building, i.e., retail sales, finan-cial, or restaurant, usually on the ground floor.Owner: The company, entity, or individual that holds title on a given building or property.Planned/Proposed: The status of a building that has been announced for future development but not yet started construction.Preleased Space: The amount of space in a building that has been leased prior to its construction completion date, or certificate of occupancy date.Price/SF: Calculated by dividing the price of a building (either sales price or asking sales price) by the Rentable Building Area (RBA).Property Manager: The company and/or person responsible for the day-to-day operations of a building, such as cleaning, trash removal, etc. The property manager also makes sure that the various systems within the building, such as the elevators, HVAC, and electrical systems, are functioning properly.Quoted Rental Rate: The asking rate per square foot for a par-ticular building or unit of space by a broker or property owner. Quoted rental rates may differ from the actual rates paid by tenants following the negotiation of all terms and conditions in a specific lease. RBA: Abbreviation for Rentable Building Area. (See also: Rentable Building Area)Region: Core areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Regions are further divided into market areas, called Markets. (See also: Markets)Relet Space: Sometimes called second generation or direct space, refers to existing space that has previously been occupied by another tenant.Rentable Building Area: (RBA) The total square footage of a building that can be occupied by, or assigned to a tenant for the purpose of determining a tenant’s rental obligation. Generally RBA includes a percentage of common areas including all hallways, main lobbies, bathrooms, and telephone closets.Rental Rates: The annual costs of occupancy for a particular space quoted on a per square foot basis.Sales Price: The total dollar amount paid for a particular property at a particular point in time.Sales Volume: The sum of sales prices for a given group of buildings in a given time period.Seller: The individual, group, company, or entity that sells a particular commercial real estate asset.SF: Abbreviation for Square Feet.Single-Tenant: Buildings that are occupied, or intended to be occupied by a single tenant. (See also: Build-to-suit and Tenancy)

Sublease Space: Space that has been leased by a tenant and is being offered for lease back to the market by the tenant with the lease obligation. Sublease space is sometimes referred to as sublet space.Submarkets: Specific geographic boundaries that serve to delin-eate a core group of buildings that are competitive with each other and constitute a generally accepted primary competitive set, or peer group. Submarkets are building type specific (office, industrial, retail, etc.), with distinct boundaries dependent on different factors relevant to each building type. Submarkets are non-overlapping, contiguous geographic designations having a cumulative sum that matches the boundaries of the Market they are located within (See also: Market).Suburban: The Suburban and Central Business District (CBD) des-ignations refer to a particular geographic area within a metropolitan statistical area (MSA). Suburban is defined as including all office inven-tory not located in the CBD. (See also: CBD)Tenancy: A term used to indicate whether or not a building is occu-pied by multiple tenants (See also: Multi-tenant) or a single tenant. (See also: Single-tenant)Tenant Rep: Tenant Rep stands for Tenant Representative. In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the tenant is referred to as a Tenant Rep.Time On Market: A measure of how long a currently available space has been marketed for lease, regardless of whether it is vacant or occupied.Under Construction: Buildings in a state of construction, up until they receive their certificate of occupancy. In order for CoStar to consider a building under construction, the site must have a concrete foundation in place. Abbreviated UC.Vacancy Rate: A measurement expressed as a percentage of the total amount of physically vacant space divided by the total amount of existing inventory. Under construction space generally is not included in vacancy calculations.Vacant Space: Space that is not currently occupied by a tenant, regardless of any lease obligation that may be on the space. Vacant space could be space that is either available or not available. For example, sublease space that is currently being paid for by a tenant but not occupied by that tenant, would be considered vacant space. Likewise, space that has been leased but not yet occupied because of finish work being done, would also be considered vacant space. Weighted Average Rental Rate: Rental rates that are cal-culated by factoring in, or weighting, the square footage associated with each particular rental rate. This has the effect of causing rental rates on larger spaces to affect the average more than that of smaller spaces. The weighted average rental rate is calculated by taking the ratio of the square footage associated with the rental rate on each individual available space to the square footage associated with rental rates on all available spaces, multiplying the rental rate by that ratio, and then adding together all the resulting numbers. Unless specifically specified otherwise, rental rate averages include both Direct and Sublet available spaces.Year Built: The year in which a building completed construction and was issued a certificate of occupancy.YTD: Abbreviation for Year-to-Date. Describes statistics that are cumulative from the beginning of a calendar year through whatever time period is being studied.



Houston – Year-End 2014 Year-End 2014 – Houston



Overview

Houston’s Vacancy Decreases to 10.8% Net Absorption Positive 2,562,772 SF in the Quarter

The Houston Office market ended the fourth quarter 2014 with a vacancy rate of 10.8%. The vacancy rate was down over the previous quarter, with net absorption

totaling positive 2,562,772 square feet in the fourth quarter. Vacant sublease space decreased in the quarter, ending the quarter at 1,762,556 square feet. Rental rates ended the fourth quarter at $27.24, an increase over the previous quarter. A total of 20 buildings delivered to the market in the quarter totaling 1,783,653 square feet, with 17,902,821 square feet still under construction at the end of the quarter.

AbsorptionNet absorption for the overall Houston office market was

positive 2,562,772 square feet in the fourth quarter 2014. That compares to positive 339,597 square feet in the third quarter 2014, positive 2,391,404 square feet in the second quarter 2014, and positive 2,489,617 square feet in the first quarter 2014.

Tenants moving out of large blocks of space in 2014 include: ExxonMobil Corporation moving out of 450,244 square feet at Five Greenspoint Place and Technip USA Inc moving out of 208,264 square feet at Energy Tower I.

Tenants moving into large blocks of space in 2014 include: Technip USA, Inc. moving into 428,831 square feet at Energy Tower III; Mustang Engineering moving into 225,884 square feet at Westgate III; and Repsol Services Company moving into 200,000 square feet at Research Forest Lakeside - Building 5.

The Class-A office market recorded net absorption of pos-itive 1,747,587 square feet in the fourth quarter 2014, compared to positive 871,690 square feet in the third quarter 2014, posi-tive 1,310,897 in the second quarter 2014, and positive 2,166,156 in the first quarter 2014.

The Class-B office market recorded net absorption of positive 823,369 square feet in the fourth quarter 2014, com-pared to negative (609,964) square feet in the third quarter 2014, positive 1,002,576 in the second quarter 2014, and posi-tive 246,886 in the first quarter 2014.

The Class-C office market recorded net absorption of negative (8,184) square feet in the fourth quarter 2014 com-pared to positive 77,871 square feet in the third quarter 2014, positive 77,931 in the second quarter 2014, and positive 76,575 in the first quarter 2014.

Net absorption for Houston’s central business district was positive 437,033 square feet in the fourth quarter 2014. That compares to negative (290,383) square feet in the third quarter 2014, positive 629,520 in the second quarter 2014, and negative (204,829) in the first quarter 2014.

Net absorption for the suburban markets was positive 2,125,739 square feet in the fourth quarter 2014. That com-pares to positive 629,980 square feet in third quarter 2014, positive 1,761,884 in the second quarter 2014, and positive 2,694,446 in the first quarter 2014.

VacancyThe office vacancy rate in the Houston market area

decreased to 10.8% at the end of the fourth quarter 2014. The vacancy rate was 11.2% at the end of the third quarter 2014, 10.9% at the end of the second quarter 2014, and 11.3% at the end of the first quarter 2014.

Class-A projects reported a vacancy rate of 9.5% at the end of the fourth quarter 2014, 9.8% at the end of the third quarter 2014, 9.3% at the end of the second quarter 2014, and 9.3% at the end of the first quarter 2014.

Vacancy Rates by Class 1999-2014

Source: CoStar Property®

Absorption & Deliveries U.S. Vacancy ComparisonPast 10 Quarters Past 10 Quarters

Source: CoStar Property® Source: CoStar Property®

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Houston United States

2 The CoStar Office Report ©2015 CoStar Group, Inc.

Houston � Year-End 2014

Houston Office MarketYear-End 2014 – Houston



Overview

Class-B projects reported a vacancy rate of 12.4% at the end of the fourth quarter 2014, 13.3% at the end of the third quarter 2014, 12.6% at the end of the second quarter 2014, and 13.5% at the end of the first quarter 2014.

Class-C projects reported a vacancy rate of 9.5% at the end of the fourth quarter 2014, 9.5% at the end of third quarter 2014, 9.7% at the end of the second quarter 2014, and 10.1% at the end of the first quarter 2014.

The overall vacancy rate in Houston’s central business dis-trict at the end of the fourth quarter 2014 decreased to 8.9%. The vacancy rate was 10.4% at the end of the third quarter 2014, 9.8% at the end of the second quarter 2014, and 11.6% at the end of the first quarter 2014.

The vacancy rate in the suburban markets decreased to 11.2% in the fourth quarter 2014. The vacancy rate was 11.4% at the end of the third quarter 2014, 11.0% at the end of the second quarter 2014, and 11.2% at the end of the first quarter 2014.

Largest Lease SigningsThe largest lease signings occurring in 2014 included:

the 224,833-square-foot lease signed by American Bureau of Shipping at One Greenspoint Place in the North Belt mar-ket; the 150,000-square-foot deal signed by GE Oil & Gas at Westway Plaza in the FM 1960 market; and the 127,684-square-foot lease signed by Energy XXI Services at One City Centre in the Downtown market.

Sublease VacancyThe amount of vacant sublease space in the Houston

market decreased to 1,762,556 square feet by the end of the fourth quarter 2014, from 1,866,315 square feet at the end of the third quarter 2014. There was 1,748,364 square feet vacant at the end of the second quarter 2014 and 1,971,907 square feet at the end of the first quarter 2014.

Houston’s Class-A projects reported vacant sublease

space of 1,128,422 square feet at the end of fourth quarter 2014, down from the 1,161,247 square feet reported at the end of the third quarter 2014. There were 1,241,664 square feet of sublease space vacant at the end of the second quarter 2014, and 1,331,836 square feet at the end of the first quarter 2014.

Class-B projects reported vacant sublease space of 622,482 square feet at the end of the fourth quarter 2014, down from the 694,531 square feet reported at the end of the third quarter 2014. At the end of the second quarter 2014 there were 494,792 square feet, and at the end of the first quarter 2014 there were 626,654 square feet vacant.

Class-C projects reported increased vacant sublease space from the third quarter 2014 to the fourth quarter 2014. Sublease vacancy went from 10,537 square feet to 11,652 square feet during that time. There was 11,908 square feet at the end of the second quarter 2014, and 13,417 square feet at the end of the first quarter 2014.

Sublease vacancy in Houston’s central business district stood at 513,173 square feet at the end of the fourth quarter 2014. It was 590,982 square feet at the end of the third quarter 2014, 605,963 square feet at the end of the second quarter 2014, and 700,169 square feet at the end of the first quarter 2014.

Sublease vacancy in the suburban markets ended the fourth quarter 2014 at 1,249,383 square feet. At the end of the third quarter 2014 sublease vacancy was 1,275,333 square feet, was 1,142,401 square feet at the end of the second quar-ter 2014, and was 1,271,738 square feet at the end of the first quarter 2014.

Rental RatesThe average quoted asking rental rate for available office

space, all classes, was $27.24 per square foot per year at the end of the fourth quarter 2014 in the Houston market area. This represented a 0.3% increase in quoted rental rates from the end of the third quarter 2014, when rents were reported at $27.17 per square foot.

The average quoted rate within the Class-A sector was $34.51 at the end of the fourth quarter 2014, while Class-B rates stood at $21.35, and Class-C rates at $16.38. At the end of the third quarter 2014, Class-A rates were $34.50 per square foot, Class-B rates were $21.05, and Class-C rates were $16.22.

The average quoted asking rental rate in Houston’s CBD was $38.27 at the end of the fourth quarter 2014, and $25.43 in the suburban markets. In the third quarter 2014, quoted rates were $38.43 in the CBD and $25.36 in the suburbs.

Deliveries and ConstructionDuring the fourth quarter 2014, 20 buildings totaling

1,783,653 square feet were completed in the Houston market area. This compares to 28 buildings totaling 1,810,312 square feet that were completed in the third quarter 2014, 21 buildings





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Overview

totaling 1,482,296 square feet completed in the second quarter 2014, and 2,500,532 square feet in 34 buildings completed in the first quarter 2014.

There were 17,902,821 square feet of office space under construction at the end of the fourth quarter 2014.

Some of the notable 2014 deliveries include: ExxonMobil Campus - Phase I, a 1,000,000-square-foot facility that deliv-ered in fourth quarter 2014 and is now 100% occupied, and Anadarko Hackett Tower, a 549,260-square-foot building that delivered in first quarter 2014 and is now 100% occupied.

The largest projects underway at the end of fourth quarter 2014 were ExxonMobil Campus - Phase II, a 1,500,000-square-foot building with 100% of its space pre-leased, and 2101 Citywest Blvd - Phillips 66, a 1,100,000-square-foot facility that is 100% pre-leased.

InventoryTotal office inventory in the Houston market area

amounted to 280,416,894 square feet in 6,547 buildings as of the end of the fourth quarter 2014. The Class-A office sec-tor consisted of 119,073,675 square feet in 384 projects. There were 2,716 Class-B buildings totaling 121,467,965 square feet, and the Class-C sector consisted of 39,875,254 square feet in 3,447 buildings. Within the Office market there were 550 owner-occupied buildings accounting for 37,306,447 square feet of office space.

Sales ActivityTallying office building sales of 15,000 square feet or larger,

Houston office sales figures rose during the third quarter 2014 in terms of dollar volume compared to the second quarter of 2014.

In the third quarter, 12 office transactions closed with a total volume of $517,827,700. The 12 buildings totaled 2,886,706 square feet and the average price per square foot equated to $179.38 per square foot. That compares to 10 transactions totaling $294,540,000 in the second quarter 2014. The total

square footage in the second quarter was 1,460,466 square feet for an average price per square foot of $201.68.

Total office building sales activity in 2014 was down compared to 2013. In the first nine months of 2014, the mar-ket saw 32 office sales transactions with a total volume of $1,363,295,829. The price per square foot averaged $214.84. In the same first nine months of 2013, the market posted 41 transactions with a total volume of $1,959,916,622. The price per square foot averaged $217.70.

Cap rates have been lower in 2014, averaging 7.35% com-pared to the same period in 2013 when they averaged 8.29%.

One of the largest transactions that has occurred within the last four quarters in the Houston market is the sale of Heritage Plaza in Houston. This 1,145,938-square-foot office building sold for $425,700,000, or $371.49 per square foot. The property sold on 2/20/2014, at a 5.80% cap rate.”

Reports compiled by: CJ Dyson, CoStar Research Manager





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CoStar Submarket Clusters & SubmarketsIn 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.

Markets

Submarket Clusters Submarkets

Austin County Austin County

Bellaire Bellaire

Downtown CBD* Midtown

E Fort Bend Co/Sugar Land E Fort Bend Co/Sugar Land

FM 1960 FM 1960/Champions FM 1960/Hwy 249 FM 1960/I-45 North

Greenway Plaza Greenway Plaza

Gulf Freeway/Pasadena Gulf Freeway/Pasadena

I-10 East I-10 East

Katy Freeway Katy Freeway East Katy Freeway West

Kingwood/Humble Kingwood/Humble

NASA/Clear Lake NASA/Clear Lake

North Belt Greenspoint/IAH Greenspoint/N Belt West

Northeast Near Northeast Near

Northwest North Loop West Northwest Far Northwest Near

Richmond/Fountainview Richmond/Fountainview

San Felipe/Voss San Felipe/Voss

San Jacinto County San Jacinto County

South South

South Hwy 35 South Hwy 35

South Main/Medical Center South Main/Medical Center

Southwest Southwest Beltway 8 Southwest/Hillcroft

West Loop Galleria/Uptown Post Oak Park Riverway

Westchase Westchase

Woodlands Woodlands

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






Historical Deliveries 1982 - 2014

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

Construction Activity Markets Ranked by Under Construction Square Footage

# Bldgs Preleased SF Preleased % All Existing U/C

Katy Freeway 27 3,627,824 57.3% 55,961 234,382

Woodlands 16 3,266,523 88.3% 32,455 231,178

Downtown 3 435,086 26.7% 90,176 543,943

Westchase 2 1,545,000 100.0% 126,897 772,500

Northwest 5 778,133 57.3% 31,597 271,444

FM 1960 11 707,109 61.1% 21,820 105,290

West Loop 3 636,936 73.6% 179,098 288,275

Greenway Plaza 3 225,436 27.1% 45,688 277,758

Gulf Freeway/Pasadena 2 80,000 50.6% 12,889 79,000

E Fort Bend Co/Sugar Land 4 138,460 92.5% 27,095 37,406

All Other 4 93,100 52.4% 32,623 44,425


Recent Deliveries Future Deliveries Leased & Un-Leased SF in Deliveries Preleased & Un-Leased SF in Properties Scheduled to Deliver


833,275

158,000

149,624

177,700

1,545,000

1,357,222

1,158,194

864,826

6,328,309

Market

Under Construction Inventory Average Bldg Size

Total RBA

3,698,841

1,631,830

25.125.5

13.6

5.74.2

1.1 1.4 1.4 1.80.6

1.8 1.5 1.20.5 0.4 0.9

3.75.1 4.6

2.6

4.93.8

1.9

4.94.1

4.8

7.3 6.7

0.8

2.71.9

4.1

7.6

0.0

5.0

10.0

15.0

20.0

25.0

30.0

1982 1986 1990 1994 1998 2002 2006 2010 2014

Millions

of

SF

Deliveries Average Delivered SF

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2010 2012 2014

Millions

of

SF

Leased Un-Leased

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2015 1q 2015 3q

T

Tho

usa

nds

of

SF

Preleased Un-Leased

Inventory & development






Historical Construction Starts & DeliveriesSquare Footage Per Quarter Starting and Completing Construction


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 67 508,904 387,538 76.2% $27.16 143,139 365,765

50,000 SF - 99,999 SF 12 847,410 683,048 80.6% $32.84 306,780 540,630

100,000 SF - 249,999 SF 16 2,531,884 1,978,381 78.1% $32.14 895,000 1,636,884

250,000 SF - 499,999 SF 6 2,139,335 1,689,953 79.0% $41.13 1,178,831 960,504

>= 500,000 SF 2 1,549,260 1,549,260 100.0% $0.00 1,549,260 0


Recent Development by Tenancy Existing Inventory ComparisonBased on RBA Developed for Single & Multi Tenant Use Based on Total RBA

2014 Deliveries


Currently Under Construction By Class By Space Type

0.300.11

1.52

0.12

1.701.43

1.91

2.74

2.241.97

2.302.15

5.50

3.37

1.28

2.14

1.22

0.08

1.16

0.22

1.07

0.07

0.72

0.080.36

0.63

2.21

0.94

2.50

1.481.81 1.78

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2011 1q 2012 1q 2013 1q 2014 1q

Millions

of

SF

Construction Starts Deliveries

72%

28%

Multi Single

46%

54%

Multi Single

14%

42%

44%

Class A Class B Class C

22%

78%

Multi Single







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Class A Market Statistics Year-End 2014

YTD Net YTD Under Quoted

Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

Austin County 0 0 0 0 0.0% 0 0 0 $0.00

Bellaire 7 1,190,517 80,596 102,701 8.6% 88,558 0 0 $25.05

Downtown 39 33,047,224 2,399,162 2,881,380 8.7% 618,589 80,000 1,631,830 $41.96

E Fort Bend Co/Sugar Land 21 3,893,653 502,372 521,579 13.4% 235,910 216,595 0 $26.83

FM 1960 21 3,854,007 433,653 479,880 12.5% 122,749 55,500 1,124,000 $27.77

Greenway Plaza 16 6,224,406 427,624 445,484 7.2% 51,190 0 833,275 $36.66

Gulf Freeway/Pasadena 1 22,706 526 526 2.3% 9,117 0 0 $27.59

I-10 East 0 0 0 0 0.0% 0 0 0 $0.00

Katy Freeway 83 19,341,460 967,541 1,047,413 5.4% 2,066,078 2,615,055 6,177,505 $35.04

Kingwood/Humble 2 131,665 33,575 33,575 25.5% 13,216 0 40,000 $31.98

NASA/Clear Lake 15 2,023,551 84,900 86,211 4.3% 91,237 55,000 0 $25.06

North Belt 24 5,438,248 1,106,364 1,113,981 20.5% (565,383) 0 0 $28.43

Northeast Near 0 0 0 0 0.0% 0 0 0 $0.00

Northwest 23 4,042,573 458,958 511,819 12.7% 15,504 0 1,357,222 $25.43

Richmond/Fountainview 0 0 0 0 0.0% 0 0 0 $0.00

San Felipe/Voss 3 1,720,793 286,055 293,464 17.1% (28,965) 0 0 $35.58

San Jacinto County 0 0 0 0 0.0% 0 0 0 $0.00

South 2 250,000 5,941 5,941 2.4% (5,941) 0 100,000 $26.98

South Hwy 35 0 0 0 0 0.0% 0 0 0 $0.00

South Main/Medical Center 15 4,508,415 273,043 275,312 6.1% 44,762 50,000 0 $29.14

Southwest 9 2,058,852 293,284 293,284 14.2% 29,983 0 0 $17.03

West Loop 43 16,382,709 1,427,539 1,617,681 9.9% 444,477 164,575 864,826 $35.37

Westchase 30 8,160,813 994,113 1,129,623 13.8% 533,456 740,092 1,545,000 $37.18

Woodlands 30 6,782,083 445,652 509,466 7.5% 2,331,793 2,554,372 1,651,891 $33.90

Totals 384 119,073,675 10,220,898 11,349,320 9.5% 6,096,330 6,531,189 15,325,549 $34.51


Class B Market Statistics Year-End 2014



Austin County 5 41,075 0 0 0.0% 0 0 0 $0.00

Bellaire 32 3,019,949 138,780 149,935 5.0% 17,974 4,960 0 $25.62

Downtown 170 19,562,345 1,566,204 1,614,460 8.3% 16,769 1,930 0 $26.95

E Fort Bend Co/Sugar Land 230 4,482,179 509,170 618,715 13.8% 87,476 67,193 149,624 $23.36

FM 1960 358 8,480,482 1,333,688 1,335,632 15.7% 91,810 48,304 34,194 $17.24

Greenway Plaza 51 4,271,684 289,181 299,326 7.0% 64,133 13,782 0 $24.81

Gulf Freeway/Pasadena 151 3,363,363 443,573 450,679 13.4% (55,710) 0 158,000 $21.92

I-10 East 25 731,906 89,016 89,016 12.2% 29,924 0 0 $20.82

Katy Freeway 322 13,380,877 1,334,665 1,545,125 11.5% (186,037) 142,257 150,804 $23.29

Kingwood/Humble 69 1,586,613 104,278 104,278 6.6% 120 0 30,000 $21.47

NASA/Clear Lake 209 5,755,350 1,144,489 1,157,752 20.1% 252,810 141,035 0 $19.87

North Belt 78 6,956,876 1,044,691 1,102,054 15.8% 286,692 0 0 $15.42

Northeast Near 27 662,292 93,603 93,603 14.1% 26,824 0 0 $20.30

Northwest 163 8,598,813 1,073,947 1,133,134 13.2% 303,626 13,458 0 $19.42

Richmond/Fountainview 27 972,320 196,809 196,809 20.2% 23,189 0 0 $17.56

San Felipe/Voss 38 3,574,555 288,546 295,324 8.3% 54,736 0 0 $23.29

San Jacinto County 1 27,261 0 0 0.0% 0 0 0 $0.00

South 79 1,582,843 196,986 199,486 12.6% (14,374) 8,086 7,700 $27.49

South Hwy 35 34 358,380 17,622 17,622 4.9% (10,130) 1,410 0 $16.70

South Main/Medical Center 64 4,359,403 554,038 554,038 12.7% 20,468 0 0 $26.04

Southwest 143 7,672,891 1,864,774 1,866,024 24.3% 57,792 0 0 $15.60

West Loop 60 6,552,013 702,135 721,928 11.0% 32,351 0 0 $26.71

Westchase 73 7,888,602 887,740 922,973 11.7% (11,947) 201,700 0 $20.55

Woodlands 307 7,585,893 571,015 599,519 7.9% 374,371 401,489 2,046,950 $26.16

Totals 2,716 121,467,965 14,444,950 15,067,432 12.4% 1,462,867 1,045,604 2,577,272 $21.35


Existing Inventory Vacancy


Figures at a Glance






Class C Market Statistics Year-End 2014



Austin County 12 37,306 2,500 2,500 6.7% (2,500) 0 0 $0.00

Bellaire 42 794,464 62,791 62,791 7.9% 5,901 0 0 $18.58

Downtown 430 5,013,180 825,625 825,625 16.5% 51,135 0 0 $19.81

E Fort Bend Co/Sugar Land 96 1,026,158 53,169 56,260 5.5% (557) 0 0 $17.66

FM 1960 317 2,852,075 229,116 229,116 8.0% 44,328 0 0 $15.12

Greenway Plaza 203 1,839,570 305,771 305,771 16.6% 3,195 0 0 $18.37

Gulf Freeway/Pasadena 374 3,393,346 308,570 312,606 9.2% 18,643 0 0 $16.33

I-10 East 83 649,900 117,468 117,468 18.1% (75,538) 0 0 $15.53

Katy Freeway 243 3,540,262 138,428 141,472 4.0% 59,505 0 0 $18.16

Kingwood/Humble 95 746,908 58,200 59,111 7.9% (11,997) 0 0 $18.01

NASA/Clear Lake 244 2,220,745 215,317 215,317 9.7% (16,689) 0 0 $17.64

North Belt 80 2,024,899 381,599 381,599 18.8% (15,282) 0 0 $12.61

Northeast Near 88 814,980 41,026 41,026 5.0% 23,319 0 0 $13.11

Northwest 317 3,252,123 214,022 214,022 6.6% 57,736 0 0 $15.69

Richmond/Fountainview 88 1,219,866 136,181 136,181 11.2% 41,680 0 0 $13.42

San Felipe/Voss 8 75,542 4,000 4,000 5.3% 1,500 0 0 $15.07

San Jacinto County 1 7,500 0 0 0.0% 7,500 0 0 $0.00

South 127 831,628 120,347 120,347 14.5% 25,293 0 0 $18.28

South Hwy 35 96 374,330 22,649 22,649 6.1% (9,249) 0 0 $17.07


Southwest 162 3,494,564 269,780 269,780 7.7% 13,233 0 0 $14.23

West Loop 28 527,064 5,569 5,569 1.1% 4,143 0 0 $24.11

Westchase 31 954,847 88,812 88,812 9.3% (20,622) 0 0 $17.08

Woodlands 144 1,242,898 48,732 48,732 3.9% (12,231) 0 0 $20.64

Totals 3,447 39,875,254 3,757,292 3,768,944 9.5% 224,193 0 0 $16.38


Total Office Market Statistics Year-End 2014



Austin County 17 78,381 2,500 2,500 3.2% (2,500) 0 0 $0.00

Bellaire 81 5,004,930 282,167 315,427 6.3% 112,433 4,960 0 $25.00

Downtown 639 57,622,749 4,790,991 5,321,465 9.2% 686,493 81,930 1,631,830 $36.78

E Fort Bend Co/Sugar Land 347 9,401,990 1,064,711 1,196,554 12.7% 322,829 283,788 149,624 $24.47

FM 1960 696 15,186,564 1,996,457 2,044,628 13.5% 258,887 103,804 1,158,194 $19.76

Greenway Plaza 270 12,335,660 1,022,576 1,050,581 8.5% 118,518 13,782 833,275 $31.57


I-10 East 108 1,381,806 206,484 206,484 14.9% (45,614) 0 0 $18.07

Katy Freeway 648 36,262,599 2,440,634 2,734,010 7.5% 1,939,546 2,757,312 6,328,309 $29.86

Kingwood/Humble 166 2,465,186 196,053 196,964 8.0% 1,339 0 70,000 $21.94

NASA/Clear Lake 468 9,999,646 1,444,706 1,459,280 14.6% 327,358 196,035 0 $20.08

North Belt 182 14,420,023 2,532,654 2,597,634 18.0% (293,973) 0 0 $22.60

Northeast Near 115 1,477,272 134,629 134,629 9.1% 50,143 0 0 $17.73

Northwest 503 15,893,509 1,746,927 1,858,975 11.7% 376,866 13,458 1,357,222 $21.39


San Felipe/Voss 49 5,370,890 578,601 592,788 11.0% 27,271 0 0 $29.79


South 208 2,664,471 323,274 325,774 12.2% 4,978 8,086 107,700 $24.41

South Hwy 35 130 732,710 40,271 40,271 5.5% (19,379) 1,410 0 $16.86


Southwest 314 13,226,307 2,427,838 2,429,088 18.4% 101,008 0 0 $15.60

West Loop 131 23,461,786 2,135,243 2,345,178 10.0% 480,971 164,575 864,826 $32.93

Westchase 134 17,004,262 1,970,665 2,141,408 12.6% 500,887 941,792 1,545,000 $30.35

Woodlands 481 15,610,874 1,065,399 1,157,717 7.4% 2,693,933 2,955,861 3,698,841 $29.27

Totals 6,547 280,416,894 28,423,140 30,185,696 10.8% 7,783,390 7,576,793 17,902,821 $27.24




Figures at a Glance






Figures at a Glance

Class A Submarket Statistics Year-End 2014



Austin County 0 0 0 0 0.0% 0 0 0 $0.00

Bellaire 7 1,190,517 80,596 102,701 8.6% 88,558 0 0 $25.05

CBD 33 31,014,090 2,169,490 2,651,708 8.6% 614,858 0 1,464,268 $42.32

E Fort Bend Co/Sugar. 21 3,893,653 502,372 521,579 13.4% 235,910 216,595 0 $26.83

FM 1960/Champions 1 150,000 0 0 0.0% 0 0 0 $0.00

FM 1960/Hwy 249 19 3,499,186 433,653 479,880 13.7% 122,749 55,500 1,124,000 $27.77

FM 1960/I-45 North 1 204,821 0 0 0.0% 0 0 0 $0.00

Galleria/Uptown 31 12,351,369 896,013 1,058,563 8.6% 504,171 164,575 765,000 $36.30

Greenspoint/IAH 7 1,093,667 180,042 180,042 16.5% (63,268) 0 0 $21.56

Greenspoint/N Belt W. 17 4,344,581 926,322 933,939 21.5% (502,115) 0 0 $29.39

Greenway Plaza 16 6,224,406 427,624 445,484 7.2% 51,190 0 833,275 $36.66

Gulf Freeway/Pasaden. 1 22,706 526 526 2.3% 9,117 0 0 $27.59

I-10 East 0 0 0 0 0.0% 0 0 0 $0.00

Katy Freeway East 17 4,246,659 121,008 144,769 3.4% 123,232 0 1,299,859 $36.81

Katy Freeway West 66 15,094,801 846,533 902,644 6.0% 1,942,846 2,615,055 4,877,646 $34.73

Kingwood/Humble 2 131,665 33,575 33,575 25.5% 13,216 0 40,000 $31.98

Midtown 6 2,033,134 229,672 229,672 11.3% 3,731 80,000 167,562 $37.21

NASA/Clear Lake 15 2,023,551 84,900 86,211 4.3% 91,237 55,000 0 $25.06

North Loop West 5 1,071,361 258,092 305,803 28.5% 23,303 0 0 $26.03

Northeast Near 0 0 0 0 0.0% 0 0 0 $0.00

Northwest Far 17 2,733,828 200,866 206,016 7.5% (7,799) 0 1,357,222 $25.17

Northwest Near 1 237,384 0 0 0.0% 0 0 0 $0.00

Post Oak Park 7 2,145,527 382,162 392,527 18.3% (36,002) 0 99,826 $34.61

Richmond/Fountainvie. 0 0 0 0 0.0% 0 0 0 $0.00

Riverway 5 1,885,813 149,364 166,591 8.8% (23,692) 0 0 $30.41

San Felipe/Voss 3 1,720,793 286,055 293,464 17.1% (28,965) 0 0 $35.58


South 2 250,000 5,941 5,941 2.4% (5,941) 0 100,000 $26.98

South Hwy 35 0 0 0 0 0.0% 0 0 0 $0.00

South Main/Medical C. 15 4,508,415 273,043 275,312 6.1% 44,762 50,000 0 $29.14

Southwest Beltway 8 3 573,500 108,034 108,034 18.8% 18,180 0 0 $17.15

Southwest/Hillcroft 6 1,485,352 185,250 185,250 12.5% 11,803 0 0 $16.98

Westchase 30 8,160,813 994,113 1,129,623 13.8% 533,456 740,092 1,545,000 $37.18

Woodlands 30 6,782,083 445,652 509,466 7.5% 2,331,793 2,554,372 1,651,891 $33.90

Totals 384 119,073,675 10,220,898 11,349,320 9.5% 6,096,330 6,531,189 15,325,549 $34.51








Figures at a Glance

Class B Submarket Statistics Year-End 2014



Austin County 5 41,075 0 0 0.0% 0 0 0 $0.00

Bellaire 32 3,019,949 138,780 149,935 5.0% 17,974 4,960 0 $25.62

CBD 56 15,094,358 1,066,397 1,097,352 7.3% (71,315) 0 0 $27.94

E Fort Bend Co/Sugar. 230 4,482,179 509,170 618,715 13.8% 87,476 67,193 149,624 $23.36

FM 1960/Champions 97 2,721,451 699,663 699,663 25.7% 32,078 7,850 6,794 $14.05

FM 1960/Hwy 249 198 3,919,710 410,580 410,580 10.5% 45,822 40,454 12,400 $22.24

FM 1960/I-45 North 63 1,839,321 223,445 225,389 12.3% 13,910 0 15,000 $17.71

Galleria/Uptown 25 3,496,574 207,873 220,111 6.3% 15,711 0 0 $25.47

Greenspoint/IAH 28 2,247,870 188,197 188,197 8.4% 45,603 0 0 $17.22

Greenspoint/N Belt W. 50 4,709,006 856,494 913,857 19.4% 241,089 0 0 $15.05

Greenway Plaza 51 4,271,684 289,181 299,326 7.0% 64,133 13,782 0 $24.81

Gulf Freeway/Pasaden. 151 3,363,363 443,573 450,679 13.4% (55,710) 0 158,000 $21.92

I-10 East 25 731,906 89,016 89,016 12.2% 29,924 0 0 $20.82

Katy Freeway East 74 3,661,387 473,680 498,687 13.6% 81,320 14,700 0 $23.25

Katy Freeway West 248 9,719,490 860,985 1,046,438 10.8% (267,357) 127,557 150,804 $23.31

Kingwood/Humble 69 1,586,613 104,278 104,278 6.6% 120 0 30,000 $21.47

Midtown 114 4,467,987 499,807 517,108 11.6% 88,084 1,930 0 $25.01

NASA/Clear Lake 209 5,755,350 1,144,489 1,157,752 20.1% 252,810 141,035 0 $19.87

North Loop West 77 3,686,486 535,268 545,759 14.8% 324,573 13,458 0 $21.07

Northeast Near 27 662,292 93,603 93,603 14.1% 26,824 0 0 $20.30

Northwest Far 65 3,863,484 502,050 550,746 14.3% (58,578) 0 0 $17.89

Northwest Near 21 1,048,843 36,629 36,629 3.5% 37,631 0 0 $16.46

Post Oak Park 21 2,016,050 358,129 361,155 17.9% 28,024 0 0 $27.56

Richmond/Fountainvie. 27 972,320 196,809 196,809 20.2% 23,189 0 0 $17.56

Riverway 14 1,039,389 136,133 140,662 13.5% (11,384) 0 0 $26.71

San Felipe/Voss 38 3,574,555 288,546 295,324 8.3% 54,736 0 0 $23.29


South 79 1,582,843 196,986 199,486 12.6% (14,374) 8,086 7,700 $27.49

South Hwy 35 34 358,380 17,622 17,622 4.9% (10,130) 1,410 0 $16.70

South Main/Medical C. 64 4,359,403 554,038 554,038 12.7% 20,468 0 0 $26.04

Southwest Beltway 8 116 5,850,656 1,409,073 1,410,323 24.1% 46,451 0 0 $15.89


Westchase 73 7,888,602 887,740 922,973 11.7% (11,947) 201,700 0 $20.55

Woodlands 307 7,585,893 571,015 599,519 7.9% 374,371 401,489 2,046,950 $26.16

Totals 2,716 121,467,965 14,444,950 15,067,432 12.4% 1,462,867 1,045,604 2,577,272 $21.35








Figures at a Glance

Class C Submarket Statistics Year-End 2014



Austin County 12 37,306 2,500 2,500 6.7% (2,500) 0 0 $0.00

Bellaire 42 794,464 62,791 62,791 7.9% 5,901 0 0 $18.58

CBD 72 2,253,139 540,790 540,790 24.0% 27,798 0 0 $19.15

E Fort Bend Co/Sugar. 96 1,026,158 53,169 56,260 5.5% (557) 0 0 $17.66

FM 1960/Champions 116 1,150,728 136,103 136,103 11.8% 2,350 0 0 $14.62

FM 1960/Hwy 249 166 1,239,581 51,987 51,987 4.2% (1,631) 0 0 $15.75

FM 1960/I-45 North 35 461,766 41,026 41,026 8.9% 43,609 0 0 $16.04

Galleria/Uptown 7 132,598 0 0 0.0% 0 0 0 $0.00

Greenspoint/IAH 33 411,590 54,190 54,190 13.2% 11,620 0 0 $15.36


Greenway Plaza 203 1,839,570 305,771 305,771 16.6% 3,195 0 0 $18.37

Gulf Freeway/Pasaden. 374 3,393,346 308,570 312,606 9.2% 18,643 0 0 $16.33

I-10 East 83 649,900 117,468 117,468 18.1% (75,538) 0 0 $15.53

Katy Freeway East 146 2,569,901 91,135 92,739 3.6% 48,823 0 0 $18.20

Katy Freeway West 97 970,361 47,293 48,733 5.0% 10,682 0 0 $18.07

Kingwood/Humble 95 746,908 58,200 59,111 7.9% (11,997) 0 0 $18.01

Midtown 358 2,760,041 284,835 284,835 10.3% 23,337 0 0 $21.47

NASA/Clear Lake 244 2,220,745 215,317 215,317 9.7% (16,689) 0 0 $17.64

North Loop West 198 1,488,698 64,305 64,305 4.3% 43,686 0 0 $17.49

Northeast Near 88 814,980 41,026 41,026 5.0% 23,319 0 0 $13.11

Northwest Far 86 1,097,878 66,630 66,630 6.1% 6,166 0 0 $16.65

Northwest Near 33 665,547 83,087 83,087 12.5% 7,884 0 0 $13.55

Post Oak Park 17 235,101 3,300 3,300 1.4% 900 0 0 $28.95

Richmond/Fountainvie. 88 1,219,866 136,181 136,181 11.2% 41,680 0 0 $13.42

Riverway 4 159,365 2,269 2,269 1.4% 3,243 0 0 $20.98

San Felipe/Voss 8 75,542 4,000 4,000 5.3% 1,500 0 0 $15.07


South 127 831,628 120,347 120,347 14.5% 25,293 0 0 $18.28

South Hwy 35 96 374,330 22,649 22,649 6.1% (9,249) 0 0 $17.07


Southwest Beltway 8 90 1,510,170 87,038 87,038 5.8% 4,214 0 0 $14.90


Westchase 31 954,847 88,812 88,812 9.3% (20,622) 0 0 $17.08

Woodlands 144 1,242,898 48,732 48,732 3.9% (12,231) 0 0 $20.64

Totals 3,447 39,875,254 3,757,292 3,768,944 9.5% 224,193 0 0 $16.38








Figures at a Glance

Total Office Submarket Statistics Year-End 2014



Austin County 17 78,381 2,500 2,500 3.2% (2,500) 0 0 $0.00

Bellaire 81 5,004,930 282,167 315,427 6.3% 112,433 4,960 0 $25.00

CBD 161 48,361,587 3,776,677 4,289,850 8.9% 571,341 0 1,464,268 $38.27

E Fort Bend Co/Sugar. 347 9,401,990 1,064,711 1,196,554 12.7% 322,829 283,788 149,624 $24.47

FM 1960/Champions 214 4,022,179 835,766 835,766 20.8% 34,428 7,850 6,794 $14.15

FM 1960/Hwy 249 383 8,658,477 896,220 942,447 10.9% 166,940 95,954 1,136,400 $24.76

FM 1960/I-45 North 99 2,505,908 264,471 266,415 10.6% 57,519 0 15,000 $17.51

Galleria/Uptown 63 15,980,541 1,103,886 1,278,674 8.0% 519,882 164,575 765,000 $34.43

Greenspoint/IAH 68 3,753,127 422,429 422,429 11.3% (6,045) 0 0 $19.31

Greenspoint/N Belt W. 114 10,666,896 2,110,225 2,175,205 20.4% (287,928) 0 0 $23.12

Greenway Plaza 270 12,335,660 1,022,576 1,050,581 8.5% 118,518 13,782 833,275 $31.57


I-10 East 108 1,381,806 206,484 206,484 14.9% (45,614) 0 0 $18.07

Katy Freeway East 237 10,477,947 685,823 736,195 7.0% 253,375 14,700 1,299,859 $28.10

Katy Freeway West 411 25,784,652 1,754,811 1,997,815 7.7% 1,686,171 2,742,612 5,028,450 $30.35

Kingwood/Humble 166 2,465,186 196,053 196,964 8.0% 1,339 0 70,000 $21.94

Midtown 478 9,261,162 1,014,314 1,031,615 11.1% 115,152 81,930 167,562 $28.46

NASA/Clear Lake 468 9,999,646 1,444,706 1,459,280 14.6% 327,358 196,035 0 $20.08

North Loop West 280 6,246,545 857,665 915,867 14.7% 391,562 13,458 0 $22.27

Northeast Near 115 1,477,272 134,629 134,629 9.1% 50,143 0 0 $17.73

Northwest Far 168 7,695,190 769,546 823,392 10.7% (60,211) 0 1,357,222 $21.31

Northwest Near 55 1,951,774 119,716 119,716 6.1% 45,515 0 0 $14.32

Post Oak Park 45 4,396,678 743,591 756,982 17.2% (7,078) 0 99,826 $31.77


Riverway 23 3,084,567 287,766 309,522 10.0% (31,833) 0 0 $28.60

San Felipe/Voss 49 5,370,890 578,601 592,788 11.0% 27,271 0 0 $29.79


South 208 2,664,471 323,274 325,774 12.2% 4,978 8,086 107,700 $24.41

South Hwy 35 130 732,710 40,271 40,271 5.5% (19,379) 1,410 0 $16.86


Southwest Beltway 8 209 7,934,326 1,604,145 1,605,395 20.2% 68,845 0 0 $15.90


Westchase 134 17,004,262 1,970,665 2,141,408 12.6% 500,887 941,792 1,545,000 $30.35

Woodlands 481 15,610,874 1,065,399 1,157,717 7.4% 2,693,933 2,955,861 3,698,841 $29.27

Totals 6,547 280,416,894 28,423,140 30,185,696 10.8% 7,783,390 7,576,793 17,902,821 $27.24








Figures at a Glance




CBD 33 31,014,090 2,169,490 2,651,708 8.6% 614,858 0 1,464,268 $42.32

Suburban 351 88,059,585 8,051,408 8,697,612 9.9% 5,481,472 6,531,189 13,861,281 $32.31

Totals 384 119,073,675 10,220,898 11,349,320 9.5% 6,096,330 6,531,189 15,325,549 $34.51





CBD 56 15,094,358 1,066,397 1,097,352 7.3% (71,315) 0 0 $27.94

Suburban 2,660 106,373,607 13,378,553 13,970,080 13.1% 1,534,182 1,045,604 2,577,272 $20.87

Totals 2,716 121,467,965 14,444,950 15,067,432 12.4% 1,462,867 1,045,604 2,577,272 $21.35


Class C Market Statistics Year-End 2014



CBD 72 2,253,139 540,790 540,790 24.0% 27,798 0 0 $19.15

Suburban 3,375 37,622,115 3,216,502 3,228,154 8.6% 196,395 0 0 $16.16

Totals 3,447 39,875,254 3,757,292 3,768,944 9.5% 224,193 0 0 $16.38


Class A & B Market Statistics Year-End 2014



CBD 89 46,108,448 3,235,887 3,749,060 8.1% 543,543 0 1,464,268 $39.18

Suburban 3,011 194,433,192 21,429,961 22,667,692 11.7% 7,015,654 7,576,793 16,438,553 $26.37

Totals 3,100 240,541,640 24,665,848 26,416,752 11.0% 7,559,197 7,576,793 17,902,821 $28.26





CBD 161 48,361,587 3,776,677 4,289,850 8.9% 571,341 0 1,464,268 $38.27

Suburban 6,386 232,055,307 24,646,463 25,895,846 11.2% 7,212,049 7,576,793 16,438,553 $25.43

Totals 6,547 280,416,894 28,423,140 30,185,696 10.8% 7,783,390 7,576,793 17,902,821 $27.24












Figures at a Glance


Net Quoted

Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates

2014 4q 384 119,073,675 10,220,898 11,349,320 9.5% 1,747,587 6 1,646,089 51 15,325,549 $34.51 2014 3q 378 117,427,586 10,289,571 11,450,818 9.8% 871,690 11 1,606,400 47 15,004,930 $34.50 2014 2q 367 115,821,186 9,474,444 10,716,108 9.3% 1,310,897 9 1,411,830 51 15,451,850 $34.53 2014 1q 358 114,409,356 9,283,339 10,615,175 9.3% 2,166,156 5 1,866,870 53 13,665,693 $33.95 2013 4q 353 112,542,486 9,633,093 10,914,461 9.7% 1,359,988 4 758,346 40 10,273,096 $32.26 2013 3q 349 111,784,140 10,208,941 11,516,103 10.3% 1,945,478 9 1,947,053 33 8,931,643 $31.98 2013 2q 340 109,837,087 9,922,893 11,514,528 10.5% 422,334 2 544,163 33 8,682,261 $31.55 2013 1q 338 109,292,924 10,153,500 11,392,699 10.4% 143,002 1 100,000 30 8,025,711 $31.37 2012 337 109,192,924 10,835,606 11,435,701 10.5% 3,450,116 6 1,471,336 27 7,635,711 $31.13 2011 331 107,721,588 12,730,861 13,414,481 12.5% 2,359,466 4 2,075,237 8 2,388,170 $29.73 2010 328 106,065,838 13,490,720 14,118,197 13.3% 942,439 3 324,492 6 3,002,849 $28.97 2009 325 105,741,346 13,714,650 14,736,144 13.9% 1,936,360 23 5,194,671 7 3,071,341 $29.76 2008 302 100,546,675 10,619,677 11,477,833 11.4% 2,597,579 24 4,841,668 27 7,996,329 $29.49 2007 278 95,705,007 8,436,155 9,233,744 9.6% 4,404,450 16 2,703,445 33 8,036,885 $27.38 2006 262 93,001,562 9,779,188 10,934,749 11.8% 4,852,942 6 1,015,556 21 4,876,584 $23.48 2005 256 91,986,006 13,239,246 14,772,135 16.1% 2,479,870 11 1,566,877 8 1,614,689 $20.60



Net Quoted


2014 4q 2,716 121,467,965 14,444,950 15,067,432 12.4% 823,369 14 137,564 29 2,577,272 $21.35 2014 3q 2,704 121,734,948 15,463,253 16,157,784 13.3% (609,964) 17 203,912 33 2,538,515 $21.05 2014 2q 2,687 121,531,036 14,849,116 15,343,908 12.6% 1,002,576 12 70,466 44 2,623,331 $20.93 2014 1q 2,676 121,582,420 15,771,214 16,397,868 13.5% 246,886 29 633,662 51 2,519,242 $20.74 2013 4q 2,648 121,358,758 15,805,802 16,421,092 13.5% 456,643 13 186,500 63 2,915,890 $20.26 2013 3q 2,635 121,172,258 16,111,402 16,691,235 13.8% 2,828 13 265,233 69 3,049,614 $19.96 2013 2q 2,622 120,907,025 15,891,632 16,428,830 13.6% 198,979 8 87,262 68 3,208,833 $19.79 2013 1q 2,614 120,819,763 16,054,597 16,540,547 13.7% (195,505) 7 259,061 55 2,527,499 $19.74 2012 2,607 120,560,702 15,605,938 16,085,981 13.3% 1,422,929 31 465,688 36 1,031,728 $19.62 2011 2,580 120,517,206 17,028,961 17,465,414 14.5% 744,101 39 573,066 23 427,155 $19.04 2010 2,541 119,944,140 17,070,206 17,636,449 14.7% 241,519 46 491,985 26 416,098 $18.90 2009 2,496 119,461,058 16,544,605 17,394,886 14.6% (699,435) 97 1,509,468 43 487,471 $19.30 2008 2,399 117,951,590 14,395,676 15,185,983 12.9% 1,022,235 144 2,348,858 83 1,333,169 $20.12 2007 2,256 115,667,005 13,334,717 13,923,633 12.0% 2,475,918 132 2,065,897 130 2,299,718 $19.27 2006 2,128 114,007,612 14,155,889 14,740,158 12.9% 3,376,339 109 2,657,454 119 1,935,797 $17.22 2005 2,021 111,489,715 14,674,375 15,598,600 14.0% 4,035,606 123 3,116,731 97 2,784,724 $16.14



Net Quoted


2014 4q 6,547 280,416,894 28,423,140 30,185,696 10.8% 2,562,772 20 1,783,653 80 17,902,821 $27.24 2014 3q 6,530 279,060,019 29,525,278 31,391,593 11.2% 339,597 28 1,810,312 80 17,543,445 $27.17 2014 2q 6,502 277,249,707 28,172,514 29,920,878 10.8% 2,391,404 21 1,482,296 95 18,075,181 $27.12 2014 1q 6,483 276,009,255 29,099,923 31,071,830 11.3% 2,489,617 34 2,500,532 104 16,184,935 $26.69 2013 4q 6,457 274,021,711 29,665,206 31,573,903 11.5% 1,762,651 17 944,846 103 13,188,986 $25.54 2013 3q 6,443 273,214,227 30,631,583 32,529,070 11.9% 1,824,860 22 2,212,286 102 11,981,257 $25.20 2013 2q 6,421 271,001,941 29,944,980 32,141,644 11.9% 651,716 10 631,425 101 11,891,094 $24.56 2013 1q 6,412 270,377,705 30,373,143 32,169,124 11.9% (136,081) 8 359,061 85 10,553,210 $24.29 2012 6,405 270,121,289 30,666,395 31,776,627 11.8% 4,687,130 37 1,937,024 63 8,667,439 $24.40 2011 6,372 268,606,457 33,769,801 34,948,925 13.0% 2,652,180 47 2,681,168 31 2,815,325 $22.95 2010 6,329 266,683,277 34,463,272 35,677,925 13.4% 1,355,848 51 820,965 36 3,451,812 $22.75 2009 6,279 265,871,215 34,345,694 36,221,711 13.6% 1,236,511 127 6,721,710 52 3,563,300 $23.64 2008 6,152 259,149,505 29,073,088 30,736,512 11.9% 3,293,983 188 7,288,801 114 9,339,466 $23.87 2007 5,968 252,069,161 25,528,314 26,950,151 10.7% 7,123,593 166 4,848,166 180 10,425,727 $22.35 2006 5,808 247,705,717 27,946,744 29,710,300 12.0% 8,455,797 137 4,063,089 157 6,889,491 $19.69 2005 5,676 243,881,235 31,845,051 34,341,615 14.1% 6,770,377 166 4,932,450 121 4,739,504 $18.02


Existing Inventory Vacancy Deliveries UC Inventory








Historical Rental RatesBased on Full-Service Equivalent Rental Rates


Vacancy by Available Space Type Vacancy by ClassPercent of All Vacant Space in Direct vs. Sublet Percent of All Vacant Space by Class


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

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

Houston United States Houston United States

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00


A B C Total Market

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

2012 3q 2013 3q 2014 3q


94%

6%

Direct Sublet

96%

4%

Direct Sublet

38%50%

12%


3.21

7.16

4.48

0.00 0.00 0.000.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2015 1q 2015 3q 2016 1q

16%

49% 35%


Leasing Activity






Leasing Activity


* Renewal

Building Submarket SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company

1 One Greenspoint Place* Greenspoint/N Belt West 224,833 1st American Bureau of Shipping James Arket & Company Colvill O�ce Properties

2 Westway Plaza FM 1960/Hwy 249 150,000 1st GE Oil & Gas CBRE Transwestern

3 One City Centre* CBD 127,684 1st Energy XXI Services Wilson Wasa� Group, LLC Transwestern

4 One Allen Center CBD 111,566 2nd Memorial Production Partners LP JLL DTZ

5 One Allen Center CBD 109,373 2nd Motiva Enterprises N/A Savills Studley

6 Energy Tower IV Katy Freeway West 103,987 3rd Technip CBRE Mac Haik Realty LLC

7 One Commerce Green Bldg Greenspoint/N Belt West 98,400 4th N/A N/A Parkway Realty Services

8 Det Norske Veritas- Phase I* Katy Freeway West 89,750 3rd Det Norske Veritas N/A Chambers Street Properties

9 Sugar Creek on the Lake E Fort Bend Co/Sugar Land 85,749 3rd N/A N/A PM Realty Group

10 Granite Briarpark Green Westchase 77,625 3rd JGC America, Inc. JLL Granite Properties

11 Wells Fargo Plaza CBD 74,100 3rd Gardere Wynne Sewell LLP N/A CBRE

12 Westway Plaza FM 1960/Hwy 249 72,490 4th N/A N/A Transwestern

13 Energy Tower I Katy Freeway West 71,624 3rd Paci�c Drilling N/A Poynter Commercial Properties Corp.

14 Greens Crossing I Greenspoint/N Belt West 68,985 2nd GSA DTZ DTZ

15 Southwest Corporate Center Southwest Beltway 8 65,000 1st Texas Children’s Hospital N/A CBRE

16 1000 Main CBD 64,978 2nd Sanchez Energy Corporation Colliers International PM Realty Group

17 Loop Central III Bellaire 64,677 2nd UniversalPegasus CBRE Transwestern

18 460 Wildwood Forest Dr Woodlands 63,259 3rd Devon Energy N/A Moody Rambin

19 5959 Corporate Dr Southwest Beltway 8 63,000 2nd Cyracom N/A CBRE

20 One Eldridge Place Katy Freeway West 61,455 1st IHI N/A JLL

21 5444 Westheimer Rd Galleria/Uptown 58,061 3rd Capital One N/A CBRE

22 Air Liquide Center- North Katy Freeway East 55,546 4th N/A N/A MetroNational Corporation

23 10255 Richmond Ave* Westchase 55,470 2nd Blinds.com United Equities, Inc. CBRE

24 Pinnacle Westchase Westchase 53,245 3rd Phillips 66 Newmark Grubb Knight Frank Savills Studley

25 8686 New Trails Dr Woodlands 52,000 3rd Emerus N/A Cushman & Wake�eld, Inc.

26 Two Hughes Landing Woodlands 51,152 2nd American Financial & Automotive Services N/A Colliers International

27 Phoenix Tower Greenway Plaza 49,018 1st HOK Architects N/A DTZ

28 Det Norske Veritas- Phase 2 Katy Freeway West 47,250 3rd Det Norske Veritas N/A Chambers Street Properties

29 2500 CityWest Westchase 47,136 1st N/A N/A Colvill O�ce Properties

30 Three Greenway Plaza Greenway Plaza 46,260 4th N/A N/A Cousins Properties Inc.

31 JPMorgan Chase CBD 45,139 1st Indigo Minerals LLC N/A Fritsche Anderson Realty Partners,

32 Galleria Tower II Galleria/Uptown 44,644 1st Hoover Slovacek, LLP N/A JLL

33 One City Centre CBD 43,532 1st Energy XXI Services N/A N/A

34 Gateway at Spring Valley Katy Freeway East 40,632 4th StollerUSA N/A CBRE

35 3737 Bu�alo Speedway Ave Greenway Plaza 40,600 1st N/A N/A PM Realty Group

36 5444 Westheimer Rd Galleria/Uptown 38,704 4th N/A N/A CBRE

37 Granite Briarpark Green Westchase 38,026 3rd Friede & Goldman Ltd Poynter Commercial Properties Corp. Granite Properties

38 20 Greenway Plz Greenway Plaza 38,006 1st RealEC Technologies DTZ CBRE

39 Clay Road Building Katy Freeway East 37,344 2nd N/A N/A Cushman & Wake�eld, Inc.

40 Pearland Medical Plaza 2 South 35,000 3rd Memorial Hermann Healthcare System N/A N/A

Select Top O�ce Leases Based on Leased Square Footage For Deals Signed in 2014






Sales Activity

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

Source: CoStar COMPS®

Sales Volume & Price Sales Analysis by Building SizeBased on Office Building Sales of 15,000 SF and Larger Based on Office Building Sales From Oct. 2013 - Sept. 2014

Bldg Size # RBA $ Volume Price/SF Cap Rate

< 50,000 SF 40 458,518 $81,513,504 177.78$ 7.40%

50K-249K SF

22 3,351,712 $503,200,058 150.13$ 7.53%

250K-499K SF

9 3,542,894 $674,150,000 190.28$ 8.57%

>500K SF 3 3,129,872 $765,149,050 244.47$ 5.75%

Source: CoStar COMPS® Source: CoStar COMPS®

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


$20

$70

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2011 1q 2012 1q 2013 1q 2014 1q

Dol

lars

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SF

Houston US

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2011 1q 2012 1q 2013 1q 2014 1q

Millions

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ollars

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2011 4q 2012 4q 2013 4q

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2011 1q 2012 1q 2013 1q 2014 1q

Cap R

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Houston Office MarketMarket Highlights – Class “A, B & C”

Sales Activity

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A u s t i n C o u n t y M a r k e t

Deliveries, Absorption & Vacancy Historical Analysis, All Classes


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


Net QuotedPeriod # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates

2014 4q 17 78,381 2,500 3.2% 0 0 0 0 0 $0.00

2014 3q 17 78,381 2,500 3.2% 0 0 0 0 0 $0.00

2014 2q 17 78,381 2,500 3.2% 1,000 0 0 0 0 $0.00

2014 1q 17 78,381 3,500 4.5% (3,500) 0 0 0 0 $0.00

2013 4q 17 78,381 0 0.0% 0 0 0 0 0 $0.00

2013 3q 17 78,381 0 0.0% 0 0 0 0 0 $0.00

2013 2q 17 78,381 0 0.0% 3,000 0 0 0 0 $0.00

2013 1q 17 78,381 3,000 3.8% 0 0 0 0 0 $0.00

2012 4q 17 78,381 3,000 3.8% 0 0 0 0 0 $0.00

2012 3q 17 78,381 3,000 3.8% 0 0 0 0 0 $0.00

2012 2q 17 78,381 3,000 3.8% 0 0 0 0 0 $0.00

2012 1q 17 78,381 3,000 3.8% 0 0 0 0 0 $0.00

2011 4q 17 78,381 3,000 3.8% 5,300 0 0 0 0 $0.00

2011 3q 17 78,381 8,300 10.6% (5,300) 0 0 0 0 $0.00

2011 2q 17 78,381 3,000 3.8% (3,000) 0 0 0 0 $0.00

2011 1q 17 78,381 0 0.0% 0 0 0 0 0 $0.00


UC InventoryDelivered InventoryExisting Inventory Vacancy

(0.006)

(0.004)

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0.002

0.004

0.006


Millions

SF

0.0%

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Perce

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Delivered SF Absorption SF Vacancy

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2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Dollars

/SF/Y

ear

0.00

0.00

0.00

0.00

0.00

0.00

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2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Millions

SF

Direct SF Sublet SF







B e l l a i r e M a r k e t






2014 4q 81 5,004,930 315,427 6.3% 23,150 0 0 0 0 $25.00

2014 3q 81 5,004,930 338,577 6.8% (2,969) 0 0 0 0 $24.11

2014 2q 81 5,004,930 335,608 6.7% 68,882 1 4,960 0 0 $24.11

2014 1q 80 4,999,970 399,530 8.0% 23,370 0 0 1 4,960 $23.98

2013 4q 80 4,999,970 422,900 8.5% 59,200 0 0 1 4,960 $22.87

2013 3q 80 4,999,970 482,100 9.6% (11,160) 0 0 1 4,960 $23.04

2013 2q 80 4,999,970 470,940 9.4% 3,053 0 0 0 0 $23.22

2013 1q 80 4,999,970 473,993 9.5% 6,219 0 0 0 0 $23.27

2012 4q 80 4,999,970 480,212 9.6% (34,342) 0 0 0 0 $22.52

2012 3q 80 4,999,970 445,870 8.9% 15,673 0 0 0 0 $22.69

2012 2q 80 4,999,970 461,543 9.2% 27,695 0 0 0 0 $22.24

2012 1q 80 4,999,970 489,238 9.8% 43,308 0 0 0 0 $21.99

2011 4q 80 4,999,970 532,546 10.7% (44,843) 0 0 0 0 $20.93

2011 3q 80 4,999,970 487,703 9.8% (15,265) 0 0 0 0 $20.48

2011 2q 80 4,999,970 472,438 9.4% (6,297) 0 0 0 0 $20.49

2011 1q 80 4,999,970 466,141 9.3% (17,840) 0 0 0 0 $20.62



(0.060)

(0.040)

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Millions

SF

0.0%

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Perce

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$21.50

$22.00

$22.50

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$23.50

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$24.50

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$25.50

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Dollars

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2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Millions

SF

Direct SF Sublet SF







D o w n t o w n M a r k e t






2014 4q 639 57,622,749 5,321,465 9.2% 484,799 1 1,930 3 1,631,830 $36.78

2014 3q 639 57,969,248 6,152,763 10.6% (242,581) 0 0 4 1,633,760 $36.83

2014 2q 639 57,969,248 5,910,182 10.2% 695,530 1 80,000 4 1,633,760 $36.71

2014 1q 640 58,131,092 6,767,556 11.6% (251,255) 0 0 5 1,713,760 $34.12

2013 4q 641 58,541,092 6,926,301 11.8% (273,479) 0 0 1 80,000 $32.14

2013 3q 641 58,541,092 6,652,822 11.4% 143,250 0 0 1 80,000 $31.49

2013 2q 641 58,541,092 6,796,072 11.6% (112,483) 0 0 1 80,000 $31.92

2013 1q 641 58,541,092 6,683,589 11.4% (63,377) 0 0 1 80,000 $31.72

2012 4q 642 58,643,737 6,722,857 11.5% 146,799 0 0 0 0 $31.99

2012 3q 642 58,643,737 6,869,656 11.7% 152,659 0 0 0 0 $31.46

2012 2q 642 58,643,737 7,022,315 12.0% (6,810) 0 0 0 0 $31.54

2012 1q 642 58,643,737 7,015,505 12.0% 207,205 0 0 0 0 $31.01

2011 4q 642 58,643,737 7,222,710 12.3% 251,497 0 0 0 0 $30.10

2011 3q 642 58,643,737 7,474,207 12.7% 386,146 1 844,763 0 0 $29.22

2011 2q 642 57,820,974 7,037,590 12.2% 113,254 0 0 1 844,763 $28.98

2011 1q 642 57,820,974 7,150,844 12.4% 286,992 2 980,574 1 844,763 $28.51



(0.400)

(0.200)

0.000

0.200

0.400

0.600

0.800

1.000

1.200


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Perce

nt V

aca

nt


$28.00

$29.00

$30.00

$31.00

$32.00

$33.00

$34.00

$35.00

$36.00

$37.00

$38.00

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Dollars

/SF/Y

ear

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Millions

SF

Direct SF Sublet SF







E F o r t B e n d C o / S u g a r L a n d M a r k e t






2014 4q 347 9,401,990 1,196,554 12.7% 51,469 1 56,595 4 149,624 $24.47

2014 3q 346 9,345,395 1,191,428 12.7% 14,371 5 40,660 3 67,395 $24.34

2014 2q 341 9,304,735 1,165,139 12.5% 237,058 1 160,000 8 108,055 $24.10

2014 1q 340 9,144,735 1,242,197 13.6% 19,931 3 26,533 7 257,255 $23.90

2013 4q 337 9,118,202 1,235,595 13.6% 202,144 1 18,500 10 283,788 $24.01

2013 3q 336 9,099,702 1,419,239 15.6% 73,244 0 0 9 221,693 $24.41

2013 2q 336 9,099,702 1,492,483 16.4% (25,652) 2 9,840 9 221,693 $24.13

2013 1q 334 9,089,862 1,456,991 16.0% 65,575 0 0 8 205,000 $24.35

2012 4q 334 9,089,862 1,522,566 16.8% 56,680 1 6,156 2 9,840 $24.24

2012 3q 333 9,083,706 1,573,090 17.3% (6,021) 1 3,553 1 6,156 $24.43

2012 2q 332 9,080,153 1,563,516 17.2% 58,712 1 10,000 1 3,553 $24.38

2012 1q 331 9,070,153 1,612,228 17.8% (23,995) 1 9,928 2 13,553 $23.49

2011 4q 330 9,060,225 1,578,305 17.4% 138,570 0 0 3 23,481 $23.60

2011 3q 330 9,060,225 1,716,875 18.9% (9,546) 0 0 2 19,928 $23.45

2011 2q 330 9,060,225 1,707,329 18.8% 24,360 0 0 1 9,928 $24.41

2011 1q 330 9,060,225 1,731,689 19.1% 4,963 0 0 0 0 $24.52



(0.050)

0.000

0.050

0.100

0.150

0.200

0.250

0.300


Millions

SF

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Perce

nt V

aca

nt


$23.60

$23.70

$23.80

$23.90

$24.00

$24.10

$24.20

$24.30

$24.40

$24.50

$24.60

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Dollars

/SF/Y

ear

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Millions

SF

Direct SF Sublet SF







F M 1 9 6 0 M a r k e t






2014 4q 696 15,186,564 2,044,628 13.5% 58,365 2 10,984 11 1,158,194 $19.76

2014 3q 694 15,175,580 2,092,009 13.8% 40,733 1 31,320 6 791,384 $19.70

2014 2q 693 15,144,260 2,101,422 13.9% 92,770 2 61,500 5 810,304 $19.44

2014 1q 691 15,082,760 2,132,692 14.1% 67,019 0 0 6 559,804 $18.73

2013 4q 691 15,082,760 2,199,711 14.6% 184,517 0 0 5 556,670 $19.06

2013 3q 691 15,082,760 2,384,228 15.8% 486,289 0 0 3 493,320 $18.64

2013 2q 691 15,082,760 2,870,517 19.0% 31,930 1 3,566 1 31,320 $18.25

2013 1q 690 15,079,194 2,898,881 19.2% 73,211 1 4,075 1 3,566 $17.94

2012 4q 689 15,075,119 2,968,017 19.7% 109,742 0 0 2 7,641 $18.83

2012 3q 689 15,075,119 3,077,759 20.4% (131,634) 0 0 2 7,641 $18.70

2012 2q 689 15,075,119 2,946,125 19.5% 153,630 1 42,478 1 4,075 $18.11

2012 1q 688 15,032,641 3,057,277 20.3% 238,414 2 73,203 1 42,478 $18.43

2011 4q 686 14,959,438 3,222,488 21.5% 80,640 0 0 3 115,681 $18.83

2011 3q 686 14,959,438 3,303,128 22.1% 60,302 3 159,837 3 115,681 $18.86

2011 2q 684 15,219,088 3,623,080 23.8% (317,187) 1 35,868 5 233,040 $18.33

2011 1q 683 15,183,220 3,270,025 21.5% 52,046 1 9,599 5 252,808 $19.51



(0.400)

(0.300)

(0.200)

(0.100)

0.000

0.100

0.200

0.300

0.400

0.500

0.600


Millions

SF

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Perce

nt V

aca

nt


$17.00

$17.50

$18.00

$18.50

$19.00

$19.50

$20.00

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Dollars

/SF/Y

ear

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Millions

SF

Direct SF Sublet SF







G r e e n w a y P l a z a M a r k e t






2014 4q 270 12,335,660 1,050,581 8.5% 64,679 1 13,782 3 833,275 $31.57

2014 3q 270 12,344,109 1,123,709 9.1% (67,994) 0 0 3 662,057 $30.68

2014 2q 270 12,344,109 1,055,715 8.6% 85,261 0 0 3 662,057 $30.61

2014 1q 270 12,344,109 1,140,976 9.2% 36,572 0 0 3 662,057 $29.24

2013 4q 275 12,424,097 1,257,536 10.1% 29,848 0 0 1 248,275 $27.72

2013 3q 275 12,424,097 1,287,384 10.4% 10,421 0 0 0 0 $26.86

2013 2q 275 12,424,097 1,297,805 10.4% (9,707) 0 0 0 0 $26.86

2013 1q 276 12,431,286 1,295,287 10.4% (92,589) 0 0 0 0 $26.04

2012 4q 276 12,431,286 1,202,698 9.7% (50,586) 0 0 0 0 $25.56

2012 3q 276 12,431,286 1,152,112 9.3% 37,000 0 0 0 0 $25.20

2012 2q 276 12,431,286 1,189,112 9.6% 127,065 0 0 0 0 $25.20

2012 1q 276 12,431,286 1,316,177 10.6% 51,349 1 34,000 0 0 $24.83

2011 4q 275 12,397,286 1,333,526 10.8% 165,862 0 0 1 34,000 $24.46

2011 3q 275 12,397,286 1,499,388 12.1% 126,076 1 28,058 1 34,000 $24.55

2011 2q 274 12,369,228 1,597,406 12.9% 14,099 0 0 2 62,058 $24.52

2011 1q 275 12,371,637 1,613,914 13.0% (86,608) 1 17,000 2 62,058 $24.77



(0.150)

(0.100)

(0.050)

0.000

0.050

0.100

0.150

0.200


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Perce

nt V

aca

nt


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Dollars

/SF/Y

ear

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Millions

SF

Direct SF Sublet SF







G u l f F r e e w a y / P a s a d e n a M a r k e t






2014 4q 526 6,779,415 763,811 11.3% (30,491) 0 0 2 158,000 $19.93

2014 3q 526 6,779,415 733,320 10.8% 207 0 0 2 158,000 $19.89

2014 2q 526 6,779,415 733,527 10.8% 18,050 0 0 1 80,000 $18.71

2014 1q 526 6,779,415 751,577 11.1% (15,716) 0 0 1 80,000 $18.69

2013 4q 526 6,779,415 735,861 10.9% 138,189 1 65,000 0 0 $18.22

2013 3q 525 6,714,415 809,050 12.0% (38,350) 0 0 1 65,000 $18.38

2013 2q 525 6,714,415 770,700 11.5% 41,583 0 0 1 65,000 $18.34

2013 1q 525 6,714,415 812,283 12.1% (13,719) 0 0 1 65,000 $18.13

2012 4q 525 6,714,415 798,564 11.9% 19,200 3 15,590 1 65,000 $17.27

2012 3q 522 6,698,825 802,174 12.0% 8,999 0 0 3 15,590 $17.18

2012 2q 522 6,698,825 811,173 12.1% (6,102) 0 0 3 15,590 $17.32

2012 1q 522 6,698,825 805,071 12.0% (10,215) 0 0 3 15,590 $17.55

2011 4q 522 6,698,825 794,856 11.9% (27,949) 0 0 0 0 $17.45

2011 3q 522 6,698,825 766,907 11.4% (56,243) 0 0 0 0 $17.72

2011 2q 522 6,698,825 710,664 10.6% 22,834 0 0 0 0 $17.40

2011 1q 522 6,698,825 733,498 10.9% 34,194 2 25,000 0 0 $17.48



(0.100)

(0.050)

0.000

0.050

0.100

0.150


Millions

SF

9.5%

10.0%

10.5%

11.0%

11.5%

12.0%

12.5%

Perce

nt V

aca

nt


$17.00

$17.50

$18.00

$18.50

$19.00

$19.50

$20.00

$20.50

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Dollars

/SF/Y

ear

0.68

0.70

0.72

0.74

0.76

0.78

0.80

0.82

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Millions

SF

Direct SF Sublet SF







I - 1 0 E a s t M a r k e t






2014 4q 108 1,381,806 206,484 14.9% 11,102 0 0 0 0 $18.07

2014 3q 108 1,381,806 217,586 15.7% (4,003) 0 0 0 0 $16.34

2014 2q 108 1,381,806 213,583 15.5% 13,284 0 0 0 0 $16.04

2014 1q 108 1,381,806 226,867 16.4% (65,997) 0 0 0 0 $16.33

2013 4q 108 1,381,806 160,870 11.6% 0 0 0 0 0 $17.31

2013 3q 108 1,381,806 160,870 11.6% (227) 0 0 0 0 $16.19

2013 2q 108 1,381,806 160,643 11.6% 13,025 0 0 0 0 $16.70

2013 1q 108 1,381,806 173,668 12.6% (5,165) 0 0 0 0 $16.88

2012 4q 108 1,381,806 168,503 12.2% 6,401 0 0 0 0 $16.59

2012 3q 108 1,381,806 174,904 12.7% (12,472) 0 0 0 0 $16.70

2012 2q 108 1,381,806 162,432 11.8% 4,593 0 0 0 0 $16.34

2012 1q 108 1,381,806 167,025 12.1% 9,522 0 0 0 0 $16.08

2011 4q 108 1,381,806 176,547 12.8% (12,161) 0 0 0 0 $16.01

2011 3q 108 1,381,806 164,386 11.9% 4,133 0 0 0 0 $15.77

2011 2q 108 1,381,806 168,519 12.2% (2,090) 0 0 0 0 $15.52

2011 1q 108 1,381,806 166,429 12.0% (1,805) 0 0 0 0 $15.45



(0.070)

(0.060)

(0.050)

(0.040)

(0.030)

(0.020)

(0.010)

0.000

0.010

0.020


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

Perce

nt V

aca

nt


$15.00

$15.50

$16.00

$16.50

$17.00

$17.50

$18.00

$18.50

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Dollars

/SF/Y

ear

0.00

0.05

0.10

0.15

0.20

0.25

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Millions

SF

Direct SF Sublet SF







K a t y F r e e w a y M a r k e t






2014 4q 648 36,262,599 2,734,010 7.5% 273,284 3 154,682 27 6,328,309 $29.86

2014 3q 645 36,107,917 2,852,612 7.9% (110,271) 4 560,622 25 5,863,222 $29.02

2014 2q 641 35,547,295 2,181,719 6.1% 515,395 3 637,109 25 5,753,001 $28.74

2014 1q 638 34,910,186 2,060,005 5.9% 1,261,138 15 1,404,899 25 5,361,248 $28.03

2013 4q 623 33,505,287 1,916,244 5.7% 845,331 4 460,695 28 5,055,838 $27.34

2013 3q 619 33,044,592 2,300,880 7.0% 814,454 9 935,389 27 4,212,104 $27.43

2013 2q 610 32,109,203 2,179,945 6.8% 150,769 2 5,356 32 4,174,581 $24.57

2013 1q 608 32,103,847 2,325,358 7.2% 226,187 3 212,091 28 3,675,643 $24.65

2012 4q 605 31,891,756 2,339,454 7.3% 163,230 2 8,098 22 3,844,245 $25.15

2012 3q 606 32,295,861 2,906,789 9.0% 490,164 3 452,924 18 2,871,064 $24.62

2012 2q 603 31,842,937 2,944,029 9.2% 310,733 0 0 12 1,765,375 $23.58

2012 1q 603 31,842,937 3,254,762 10.2% 215,255 1 4,328 9 1,054,738 $23.61

2011 4q 602 31,838,609 3,465,689 10.9% 307,785 3 10,938 4 457,252 $23.36

2011 3q 599 31,827,671 3,762,536 11.8% 93,395 1 8,669 6 466,990 $23.43

2011 2q 598 31,819,002 3,847,262 12.1% 141,577 0 0 5 23,935 $23.01

2011 1q 598 31,819,002 3,988,839 12.5% 110,637 4 33,323 4 19,607 $22.63



(0.200)

0.000

0.200

0.400

0.600

0.800

1.000

1.200

1.400

1.600


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Perce

nt V

aca

nt


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Dollars

/SF/Y

ear

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Millions

SF

Direct SF Sublet SF







K i n g w o o d / H u m b l e M a r k e t






2014 4q 166 2,465,186 196,964 8.0% (333) 0 0 2 70,000 $21.94

2014 3q 166 2,465,186 196,631 8.0% 10,617 0 0 2 70,000 $22.04

2014 2q 166 2,465,186 207,248 8.4% 6,174 0 0 1 30,000 $22.42

2014 1q 166 2,465,186 213,422 8.7% (15,119) 0 0 0 0 $21.34

2013 4q 166 2,465,186 198,303 8.0% (4,221) 0 0 0 0 $21.21

2013 3q 166 2,465,186 194,082 7.9% (16,121) 0 0 0 0 $21.30

2013 2q 166 2,465,186 177,961 7.2% (10,174) 0 0 0 0 $21.56

2013 1q 166 2,465,186 167,787 6.8% 35,762 0 0 0 0 $21.58

2012 4q 166 2,465,186 203,549 8.3% 17,351 1 45,000 0 0 $21.75

2012 3q 165 2,420,186 175,900 7.3% 36,867 0 0 1 45,000 $21.68

2012 2q 165 2,420,186 212,767 8.8% (7,238) 0 0 1 45,000 $21.53

2012 1q 165 2,420,186 205,529 8.5% 20,916 0 0 1 45,000 $21.18

2011 4q 165 2,420,186 226,445 9.4% (11,551) 0 0 0 0 $20.89

2011 3q 165 2,420,186 214,894 8.9% 50,433 0 0 0 0 $21.17

2011 2q 165 2,420,186 265,327 11.0% 30,437 1 4,030 0 0 $19.74

2011 1q 164 2,416,156 291,734 12.1% 15,222 0 0 1 4,030 $19.90



(0.020)

(0.010)

0.000

0.010

0.020

0.030

0.040

0.050

0.060


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Perce

nt V

aca

nt


$20.60

$20.80

$21.00

$21.20

$21.40

$21.60

$21.80

$22.00

$22.20

$22.40

$22.60

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Dollars

/SF/Y

ear

0.00

0.05

0.10

0.15

0.20

0.25

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Millions

SF

Direct SF Sublet SF







N A S A / C l e a r L a k e M a r k e t






2014 4q 468 9,999,646 1,459,280 14.6% 96,159 1 18,000 0 0 $20.08

2014 3q 467 9,981,646 1,537,439 15.4% 116,079 1 55,000 1 18,000 $19.46

2014 2q 466 9,926,646 1,598,518 16.1% 14,520 0 0 2 73,000 $19.19

2014 1q 466 9,926,646 1,613,038 16.2% 100,600 2 123,035 2 73,000 $19.06

2013 4q 464 9,803,611 1,590,603 16.2% 122,940 0 0 3 178,035 $18.97

2013 3q 464 9,803,611 1,713,543 17.5% (36,543) 1 4,760 2 123,035 $19.12

2013 2q 463 9,798,851 1,672,240 17.1% (71,935) 0 0 3 127,795 $19.08

2013 1q 463 9,798,851 1,600,305 16.3% (270,882) 0 0 3 127,795 $18.81

2012 4q 463 9,798,851 1,329,423 13.6% 67,836 1 4,495 2 124,760 $19.42

2012 3q 462 9,794,356 1,392,764 14.2% (82,476) 1 14,701 2 124,495 $19.51

2012 2q 461 9,779,655 1,295,587 13.2% (36,545) 0 0 3 139,196 $19.53

2012 1q 461 9,779,655 1,259,042 12.9% (142,876) 0 0 3 139,196 $19.88

2011 4q 461 9,779,655 1,116,166 11.4% 137,253 1 102,000 1 14,701 $20.34

2011 3q 460 9,677,655 1,151,419 11.9% (101,499) 0 0 1 102,000 $20.30

2011 2q 460 9,677,655 1,049,920 10.8% (257,692) 0 0 1 102,000 $20.30

2011 1q 460 9,677,655 792,228 8.2% 62,190 3 18,715 1 102,000 $20.14



(0.300)

(0.250)

(0.200)

(0.150)

(0.100)

(0.050)

0.000

0.050

0.100

0.150

0.200


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Perce

nt V

aca

nt


$18.00

$18.20

$18.40

$18.60

$18.80

$19.00

$19.20

$19.40

$19.60

$19.80

$20.00

$20.20

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Dollars

/SF/Y

ear

1.30

1.35

1.40

1.45

1.50

1.55

1.60

1.65

1.70

1.75

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Millions

SF

Direct SF Sublet SF







N o r t h B e l t M a r k e t






2014 4q 182 14,420,023 2,597,634 18.0% (288,737) 0 0 0 0 $22.60

2014 3q 182 14,420,023 2,308,897 16.0% (151,963) 0 0 0 0 $22.61

2014 2q 182 14,420,023 2,156,934 15.0% 119,298 0 0 0 0 $23.76

2014 1q 182 14,420,023 2,276,232 15.8% 27,429 0 0 0 0 $24.42

2013 4q 182 14,420,023 2,303,661 16.0% 99,435 0 0 0 0 $22.14

2013 3q 182 14,420,023 2,403,096 16.7% (292,713) 0 0 0 0 $22.36

2013 2q 182 14,420,023 2,110,383 14.6% (123,278) 0 0 0 0 $21.52

2013 1q 182 14,420,023 1,987,105 13.8% (10,183) 1 100,000 0 0 $18.54

2012 4q 181 14,320,023 1,876,922 13.1% 75,314 0 0 1 100,000 $18.27

2012 3q 181 14,320,023 1,952,236 13.6% 97,030 0 0 1 100,000 $17.72

2012 2q 181 14,320,023 2,049,266 14.3% 7,232 0 0 1 100,000 $16.84

2012 1q 181 14,320,023 2,056,498 14.4% 8,651 0 0 1 100,000 $16.86

2011 4q 182 14,330,012 2,075,138 14.5% (83,439) 1 17,000 1 100,000 $16.36

2011 3q 181 14,313,012 1,974,699 13.8% (67,903) 0 0 2 117,000 $16.04

2011 2q 181 14,313,012 1,906,796 13.3% 41,752 0 0 2 117,000 $16.20

2011 1q 181 14,313,012 1,948,548 13.6% 80,793 1 98,539 2 117,000 $15.93



(0.350)

(0.300)

(0.250)

(0.200)

(0.150)

(0.100)

(0.050)

0.000

0.050

0.100

0.150


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Perce

nt V

aca

nt


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Dollars

/SF/Y

ear

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Millions

SF

Direct SF Sublet SF







N o r t h e a s t N e a r M a r k e t






2014 4q 115 1,477,272 134,629 9.1% (1,582) 0 0 0 0 $17.73

2014 3q 115 1,477,272 133,047 9.0% 32,259 0 0 0 0 $16.81

2014 2q 115 1,477,272 165,306 11.2% 10,462 0 0 0 0 $16.83

2014 1q 115 1,477,272 175,768 11.9% 9,004 0 0 0 0 $16.89

2013 4q 115 1,477,272 184,772 12.5% 5,299 0 0 0 0 $17.46

2013 3q 115 1,477,272 190,071 12.9% (19,956) 1 6,203 0 0 $16.52

2013 2q 114 1,471,069 163,912 11.1% (11,603) 0 0 1 6,203 $16.52

2013 1q 114 1,471,069 152,309 10.4% (9,239) 0 0 1 6,203 $16.83

2012 4q 114 1,471,069 143,070 9.7% 12,552 0 0 0 0 $18.07

2012 3q 114 1,471,069 155,622 10.6% 32,448 1 30,000 0 0 $17.76

2012 2q 113 1,441,069 158,070 11.0% 4,092 0 0 1 30,000 $17.75

2012 1q 113 1,441,069 162,162 11.3% (3,617) 0 0 1 30,000 $18.24

2011 4q 113 1,441,069 158,545 11.0% (3,839) 0 0 1 30,000 $18.16

2011 3q 113 1,441,069 154,706 10.7% (1,017) 0 0 0 0 $18.30

2011 2q 113 1,441,069 153,689 10.7% 1,891 0 0 0 0 $17.63

2011 1q 113 1,441,069 155,580 10.8% (585) 0 0 0 0 $17.78



(0.030)

(0.020)

(0.010)

0.000

0.010

0.020

0.030

0.040


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Perce

nt V

aca

nt


$15.80

$16.00

$16.20

$16.40

$16.60

$16.80

$17.00

$17.20

$17.40

$17.60

$17.80

$18.00

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Dollars

/SF/Y

ear

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

0.18

0.20

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Millions

SF

Direct SF Sublet SF







N o r t h w e s t M a r k e t






2014 4q 503 15,893,509 1,858,975 11.7% 225,631 0 0 5 1,357,222 $21.39

2014 3q 503 15,893,509 2,084,606 13.1% 48,120 1 3,106 5 1,357,222 $21.42

2014 2q 502 15,890,403 2,129,620 13.4% 16,363 1 10,352 5 1,251,695 $21.85

2014 1q 501 15,880,051 2,135,631 13.4% 86,752 0 0 5 622,047 $21.28

2013 4q 503 15,903,051 2,245,383 14.1% 143,834 1 10,000 3 284,842 $20.06

2013 3q 502 15,893,051 2,379,217 15.0% 175,761 1 159,056 4 294,842 $20.11

2013 2q 501 15,733,995 2,395,922 15.2% (50,421) 0 0 4 182,514 $19.11

2013 1q 501 15,733,995 2,345,501 14.9% (140,024) 0 0 1 159,056 $19.01

2012 4q 501 15,733,995 2,205,477 14.0% 89,751 0 0 1 159,056 $18.56

2012 3q 501 15,733,995 2,295,228 14.6% 192,224 0 0 1 159,056 $18.42

2012 2q 501 15,733,995 2,487,452 15.8% 93,980 0 0 1 159,056 $18.76

2012 1q 501 15,733,995 2,581,432 16.4% 159,495 0 0 0 0 $18.66

2011 4q 501 15,733,995 2,740,927 17.4% 113,217 0 0 0 0 $17.67

2011 3q 501 15,733,995 2,854,144 18.1% 117,638 1 2,776 0 0 $17.76

2011 2q 500 15,731,219 2,969,006 18.9% (119,628) 0 0 1 2,776 $18.11

2011 1q 500 15,731,219 2,849,378 18.1% 159,265 0 0 1 2,776 $19.01



(0.200)

(0.150)

(0.100)

(0.050)

0.000

0.050

0.100

0.150

0.200

0.250


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Perce

nt V

aca

nt


$17.50

$18.00

$18.50

$19.00

$19.50

$20.00

$20.50

$21.00

$21.50

$22.00

$22.50

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Dollars

/SF/Y

ear

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Millions

SF

Direct SF Sublet SF







R i c h m o n d / F o u n t a i n v i e w M a r k e t






2014 4q 115 2,192,186 332,990 15.2% 32,784 0 0 0 0 $16.07

2014 3q 115 2,192,186 365,774 16.7% 19,740 0 0 0 0 $15.88

2014 2q 115 2,192,186 385,514 17.6% 12,864 0 0 0 0 $15.71

2014 1q 115 2,192,186 398,378 18.2% (519) 0 0 0 0 $15.56

2013 4q 115 2,192,186 397,859 18.1% (14,018) 0 0 0 0 $15.28

2013 3q 115 2,192,186 383,841 17.5% 33,952 0 0 0 0 $15.49

2013 2q 115 2,192,186 417,793 19.1% 12,191 0 0 0 0 $14.71

2013 1q 115 2,192,186 429,984 19.6% (44,487) 0 0 0 0 $14.54

2012 4q 115 2,192,186 385,497 17.6% (4,275) 0 0 0 0 $15.15

2012 3q 115 2,192,186 381,222 17.4% 11,813 0 0 0 0 $15.23

2012 2q 115 2,192,186 393,035 17.9% 253 0 0 0 0 $15.22

2012 1q 115 2,192,186 393,288 17.9% 10,360 0 0 0 0 $16.08

2011 4q 115 2,192,186 403,648 18.4% (19,544) 0 0 0 0 $15.22

2011 3q 115 2,192,186 384,104 17.5% 2,145 0 0 0 0 $15.38

2011 2q 115 2,192,186 386,249 17.6% (21,822) 0 0 0 0 $14.89

2011 1q 115 2,192,186 364,427 16.6% (10,158) 0 0 0 0 $15.06



(0.050)

(0.040)

(0.030)

(0.020)

(0.010)

0.000

0.010

0.020

0.030

0.040


Millions

SF

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Perce

nt V

aca

nt


$13.50

$14.00

$14.50

$15.00

$15.50

$16.00

$16.50

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Dollars

/SF/Y

ear

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

0.50

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Millions

SF

Direct SF Sublet SF







S a n F e l i p e / V o s s M a r k e t






2014 4q 49 5,370,890 592,788 11.0% (38,182) 0 0 0 0 $29.79

2014 3q 49 5,370,890 554,606 10.3% (4,794) 0 0 0 0 $29.60

2014 2q 49 5,370,890 549,812 10.2% 129,125 0 0 0 0 $27.08

2014 1q 49 5,370,890 678,937 12.6% (58,878) 0 0 0 0 $27.21

2013 4q 49 5,370,890 620,059 11.5% (2,612) 0 0 0 0 $26.15

2013 3q 51 5,497,252 743,809 13.5% (27,498) 0 0 0 0 $24.97

2013 2q 51 5,497,252 716,311 13.0% (55,859) 0 0 0 0 $24.65

2013 1q 51 5,497,252 660,452 12.0% 642 0 0 0 0 $24.23

2012 4q 51 5,497,252 661,094 12.0% 60,169 0 0 0 0 $24.89

2012 3q 51 5,497,252 721,263 13.1% (70,645) 0 0 0 0 $24.32

2012 2q 51 5,497,252 650,618 11.8% (28,138) 0 0 0 0 $24.63

2012 1q 51 5,497,252 622,480 11.3% 70,488 0 0 0 0 $23.94

2011 4q 51 5,497,252 692,968 12.6% (82,315) 0 0 0 0 $23.90

2011 3q 51 5,497,252 610,653 11.1% (16,481) 0 0 0 0 $24.04

2011 2q 51 5,497,252 594,172 10.8% (33,894) 0 0 0 0 $23.62

2011 1q 51 5,497,252 560,278 10.2% 40,201 0 0 0 0 $23.05



(0.100)

(0.050)

0.000

0.050

0.100

0.150


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Perce

nt V

aca

nt


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Dollars

/SF/Y

ear

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Millions

SF

Direct SF Sublet SF







S a n J a c i n t o C o u n t y M a r k e t






2014 4q 2 34,761 0 0.0% 7,500 0 0 0 0 $0.00

2014 3q 2 34,761 7,500 21.6% 0 0 0 0 0 $0.00

2014 2q 2 34,761 7,500 21.6% 0 0 0 0 0 $0.00

2014 1q 2 34,761 7,500 21.6% 0 0 0 0 0 $0.00

2013 4q 2 34,761 7,500 21.6% 0 0 0 0 0 $0.00

2013 3q 2 34,761 7,500 21.6% 0 0 0 0 0 $0.00

2013 2q 2 34,761 7,500 21.6% (7,500) 0 0 0 0 $0.00

2013 1q 2 34,761 0 0.0% 0 0 0 0 0 $0.00

2012 4q 2 34,761 0 0.0% 0 0 0 0 0 $0.00

2012 3q 2 34,761 0 0.0% 0 0 0 0 0 $0.00

2012 2q 2 34,761 0 0.0% 0 0 0 0 0 $0.00

2012 1q 2 34,761 0 0.0% 0 0 0 0 0 $0.00

2011 4q 2 34,761 0 0.0% 0 0 0 0 0 $0.00

2011 3q 2 34,761 0 0.0% 0 0 0 0 0 $0.00

2011 2q 2 34,761 0 0.0% 0 0 0 0 0 $0.00

2011 1q 2 34,761 0 0.0% 0 0 0 0 0 $0.00



(0.010)

(0.008)

(0.006)

(0.004)

(0.002)

0.000

0.002

0.004

0.006

0.008

0.010


Millions

SF

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Perce

nt V

aca

nt


$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Dollars

/SF/Y

ear

0.00

0.00

0.00

0.00

0.00

0.01

0.01

0.01

0.01

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Millions

SF

Direct SF Sublet SF







S o u t h M a r k e t






2014 4q 208 2,664,471 325,774 12.2% 20,649 0 0 2 107,700 $24.41

2014 3q 208 2,664,471 346,423 13.0% (11,811) 0 0 2 107,700 $22.86

2014 2q 208 2,664,471 334,612 12.6% (1,353) 1 8,086 1 7,700 $24.22

2014 1q 207 2,656,385 325,173 12.2% (2,507) 0 0 2 15,786 $24.09

2013 4q 207 2,656,385 322,666 12.1% (18,154) 0 0 1 8,086 $22.33

2013 3q 207 2,656,385 304,512 11.5% 231,693 3 230,489 1 8,086 $21.99

2013 2q 204 2,425,896 305,716 12.6% 10,027 0 0 3 230,489 $20.60

2013 1q 204 2,425,896 315,743 13.0% 9,804 1 3,151 3 230,489 $19.73

2012 4q 203 2,422,745 322,396 13.3% (15,030) 0 0 4 233,640 $19.97

2012 3q 203 2,422,745 307,366 12.7% 62,199 4 66,887 3 179,384 $20.38

2012 2q 199 2,355,858 302,678 12.8% 14,491 0 0 6 240,038 $20.45

2012 1q 199 2,355,858 317,169 13.5% (20,680) 1 3,331 4 66,887 $19.31

2011 4q 198 2,352,527 293,158 12.5% 32,188 1 8,067 5 70,218 $19.86

2011 3q 197 2,344,460 317,279 13.5% (4,612) 0 0 3 55,977 $19.95

2011 2q 197 2,344,460 312,667 13.3% (19,308) 0 0 2 11,398 $20.06

2011 1q 197 2,344,460 293,359 12.5% (5,943) 1 11,987 1 8,067 $19.89



(0.050)

0.000

0.050

0.100

0.150

0.200

0.250


Millions

SF

10.0%

10.5%

11.0%

11.5%

12.0%

12.5%

13.0%

13.5%

14.0%

Perce

nt V

aca

nt


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Dollars

/SF/Y

ear

0.27

0.28

0.29

0.30

0.31

0.32

0.33

0.34

0.35

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Millions

SF

Direct SF Sublet SF







S o u t h H w y 3 5 M a r k e t






2014 4q 130 732,710 40,271 5.5% (3,939) 0 0 0 0 $16.86

2014 3q 130 732,710 36,332 5.0% (16,368) 0 0 0 0 $16.89

2014 2q 130 732,710 19,964 2.7% (1,282) 0 0 0 0 $15.56

2014 1q 130 732,710 18,682 2.5% 2,210 1 1,410 0 0 $15.61

2013 4q 129 731,300 19,482 2.7% 10,725 0 0 1 1,410 $15.54

2013 3q 129 731,300 30,207 4.1% (11,560) 0 0 1 1,410 $15.44

2013 2q 129 731,300 18,647 2.5% 9,496 0 0 1 1,410 $15.53

2013 1q 129 731,300 28,143 3.8% (4,396) 0 0 1 1,410 $15.66

2012 4q 129 731,300 23,747 3.2% 2,883 0 0 0 0 $14.85

2012 3q 129 731,300 26,630 3.6% 2,675 0 0 0 0 $13.64

2012 2q 129 731,300 29,305 4.0% 4,284 0 0 0 0 $13.87

2012 1q 129 731,300 33,589 4.6% (6,000) 0 0 0 0 $14.98

2011 4q 129 731,300 27,589 3.8% 4,546 0 0 0 0 $14.98

2011 3q 129 731,300 32,135 4.4% 4,250 0 0 0 0 $14.56

2011 2q 129 731,300 36,385 5.0% (2,432) 0 0 0 0 $14.57

2011 1q 129 731,300 33,953 4.6% 2,897 0 0 0 0 $15.07



(0.020)

(0.015)

(0.010)

(0.005)

0.000

0.005

0.010

0.015


Millions

SF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Perce

nt V

aca

nt


$14.50

$15.00

$15.50

$16.00

$16.50

$17.00

$17.50

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Dollars

/SF/Y

ear

0.00

0.01

0.01

0.02

0.02

0.03

0.03

0.04

0.04

0.05

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Millions

SF

Direct SF Sublet SF







S o u t h M a i n / M e d i c a l C e n t e r M a r k e t






2014 4q 217 11,808,917 937,540 7.9% (36,445) 0 0 0 0 $26.19

2014 3q 217 11,808,917 901,095 7.6% 26,440 1 50,000 0 0 $24.67

2014 2q 216 11,758,917 877,535 7.5% 47,262 0 0 1 50,000 $24.85

2014 1q 216 11,758,917 924,797 7.9% 59,720 0 0 1 50,000 $24.79

2013 4q 216 11,758,917 984,517 8.4% 72,689 0 0 1 50,000 $24.41

2013 3q 216 11,758,917 1,057,206 9.0% (247,776) 0 0 1 50,000 $24.69

2013 2q 216 11,758,917 809,430 6.9% 20,132 0 0 1 50,000 $24.75

2013 1q 216 11,758,917 829,562 7.1% 316,099 0 0 1 50,000 $24.51

2012 4q 216 11,758,917 1,145,661 9.7% (27,509) 0 0 0 0 $24.82

2012 3q 216 11,758,917 1,118,152 9.5% 23,004 0 0 0 0 $24.75

2012 2q 216 11,758,917 1,141,156 9.7% 54,256 0 0 0 0 $24.52

2012 1q 216 11,758,917 1,195,412 10.2% 551,506 1 895,612 0 0 $25.30

2011 4q 215 10,863,305 851,306 7.8% (14,879) 0 0 1 895,612 $24.93

2011 3q 216 11,177,397 1,150,519 10.3% (363,718) 0 0 1 895,612 $24.74

2011 2q 216 11,177,397 786,801 7.0% 23,251 0 0 1 895,612 $24.94

2011 1q 216 11,177,397 810,052 7.2% 7,349 0 0 1 895,612 $23.66



(0.600)

(0.400)

(0.200)

0.000

0.200

0.400

0.600

0.800

1.000


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Perce

nt V

aca

nt


$23.50

$24.00

$24.50

$25.00

$25.50

$26.00

$26.50

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Dollars

/SF/Y

ear

0.00

0.20

0.40

0.60

0.80

1.00

1.20

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Millions

SF

Direct SF Sublet SF







S o u t h w e s t M a r k e t






2014 4q 314 13,226,307 2,429,088 18.4% 121,398 0 0 0 0 $15.60

2014 3q 314 13,226,307 2,550,486 19.3% (76,621) 0 0 0 0 $16.07

2014 2q 314 13,226,307 2,473,865 18.7% 231,030 0 0 0 0 $16.30

2014 1q 314 13,226,307 2,704,895 20.5% (174,799) 0 0 0 0 $16.34

2013 4q 314 13,226,307 2,530,096 19.1% (5,677) 0 0 0 0 $16.23

2013 3q 314 13,226,307 2,524,419 19.1% 173,371 0 0 0 0 $15.63

2013 2q 314 13,226,307 2,697,790 20.4% (28,997) 0 0 0 0 $15.54

2013 1q 314 13,226,307 2,668,793 20.2% (94,279) 0 0 0 0 $15.56

2012 4q 314 13,226,307 2,574,514 19.5% (108,954) 0 0 0 0 $15.87

2012 3q 314 13,226,307 2,465,560 18.6% (257,437) 0 0 0 0 $15.75

2012 2q 314 13,226,307 2,208,123 16.7% 41,925 0 0 0 0 $15.68

2012 1q 314 13,226,307 2,250,048 17.0% 82,689 1 4,415 0 0 $15.70

2011 4q 313 13,221,892 2,328,322 17.6% (78,654) 1 20,000 1 4,415 $15.76

2011 3q 312 13,201,892 2,229,668 16.9% (5,794) 0 0 2 24,415 $15.75

2011 2q 312 13,201,892 2,223,874 16.8% (49,946) 0 0 2 24,415 $15.77

2011 1q 312 13,201,892 2,173,928 16.5% (54,925) 0 0 0 0 $15.17



(0.300)

(0.200)

(0.100)

0.000

0.100

0.200

0.300


Millions

SF

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Perce

nt V

aca

nt


$15.00

$15.20

$15.40

$15.60

$15.80

$16.00

$16.20

$16.40

$16.60

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Dollars

/SF/Y

ear

2.25

2.30

2.35

2.40

2.45

2.50

2.55

2.60

2.65

2.70

2.75

2013 1q2013 2q2013 3q2013 4q2014 1q2014 2q2014 3q2014 4q

Millions

SF

Direct SF Sublet SF







W e s t L o o p M a r k e t






2014 4q 131 23,461,786 2,345,178 10.0% 142,901 0 0 3 864,826 $32.93

2014 3q 132 23,517,904 2,544,197 10.8% 185,665 1 83,073 2 699,826 $33.01

2014 2q 131 23,434,831 2,646,789 11.3% (89,667) 1 81,502 3 782,899 $32.57

2014 1q 130 23,353,329 2,475,620 10.6% 242,072 0 0 4 864,401 $32.15

2013 4q 130 23,353,329 2,717,692 11.6% 167,235 0 0 3 264,401 $31.58

2013 3q 130 23,353,329 2,884,927 12.4% 71,937 1 304,419 3 264,401 $30.99

2013 2q 129 23,048,910 2,652,445 11.5% 376,284 1 312,574 3 468,994 $31.15

2013 1q 128 22,736,336 2,716,155 11.9% (51,800) 0 0 4 781,568 $30.94

2012 4q 128 22,736,336 2,664,355 11.7% 2,508 0 0 4 781,568 $30.17

2012 3q 128 22,736,336 2,666,863 11.7% (54,528) 0 0 4 781,568 $29.97

2012 2q 128 22,736,336 2,612,335 11.5% 193,291 0 0 2 616,993 $29.37

2012 1q 128 22,736,336 2,805,626 12.3% (16,961) 0 0 2 616,993 $28.91

2011 4q 128 22,736,336 2,788,665 12.3% 172,206 0 0 1 312,574 $27.56

2011 3q 128 22,736,336 2,960,871 13.0% (68,053) 0 0 1 312,574 $26.98

2011 2q 128 22,736,336 2,892,818 12.7% 91,525 0 0 0 0 $25.83

2011 1q 128 22,736,336 2,984,343 13.1% 75,756 0 0 0 0 $25.39



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2014 4q 134 17,004,262 2,141,408 12.6% 124,290 1 300,000 2 1,545,000 $30.35

2014 3q 133 16,704,262 1,965,698 11.8% (54,424) 2 440,092 3 1,845,000 $31.60

2014 2q 131 16,264,170 1,471,182 9.0% 134,607 0 0 5 2,285,092 $31.33

2014 1q 131 16,264,170 1,605,789 9.9% 296,414 2 201,700 4 1,185,092 $30.93

2013 4q 129 16,062,470 1,700,503 10.6% (140,788) 1 302,551 4 834,800 $30.67

2013 3q 128 15,759,919 1,257,164 8.0% 26,511 0 0 4 837,351 $29.17

2013 2q 128 15,759,919 1,283,675 8.1% 215,677 0 0 4 837,351 $28.26

2013 1q 128 15,759,919 1,499,352 9.5% (71,492) 0 0 3 712,351 $28.53

2012 4q 128 15,759,919 1,427,860 9.1% 105,300 0 0 3 712,351 $28.69

2012 3q 128 15,759,919 1,533,160 9.7% 84,837 1 45,000 2 379,251 $27.85

2012 2q 127 15,714,919 1,572,997 10.0% 348,165 0 0 3 424,251 $25.31

2012 1q 127 15,714,919 1,921,162 12.2% 343 0 0 2 121,700 $23.14

2011 4q 127 15,714,919 1,921,505 12.2% 114,466 0 0 1 45,000 $21.73

2011 3q 127 15,714,919 2,035,971 13.0% 88,549 0 0 0 0 $22.27

2011 2q 127 15,714,919 2,124,520 13.5% (23,845) 0 0 0 0 $22.64

2011 1q 127 15,714,919 2,100,675 13.4% 249,246 0 0 0 0 $25.32



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2014 4q 481 15,610,874 1,157,717 7.4% 1,224,321 10 1,227,680 16 3,698,841 $29.27

2014 3q 471 14,383,194 1,154,358 8.0% 589,165 12 546,439 22 4,269,879 $31.04

2014 2q 459 13,836,755 1,197,084 8.7% 34,771 10 438,787 31 4,547,618 $30.63

2014 1q 449 13,397,968 793,068 5.9% 845,676 11 742,955 38 4,735,525 $30.93

2013 4q 438 12,655,013 895,789 7.1% 140,214 9 88,100 41 5,337,881 $28.60

2013 3q 430 12,577,913 958,903 7.6% 285,881 6 571,970 44 5,325,055 $29.03

2013 2q 424 12,005,943 672,814 5.6% 272,158 4 300,089 37 5,413,744 $28.13

2013 1q 420 11,705,854 644,883 5.5% 2,052 2 39,744 29 4,455,129 $25.85

2012 4q 418 11,666,110 607,191 5.2% 174,973 1 4,194 21 2,629,338 $26.81

2012 3q 417 11,661,916 777,970 6.7% 128,652 2 105,486 10 1,340,338 $25.36

2012 2q 415 11,556,430 801,136 6.9% 41,344 1 16,445 9 1,271,324 $25.14

2012 1q 414 11,539,985 826,035 7.2% 210,041 4 41,200 7 1,206,974 $25.64

2011 4q 410 11,498,785 994,876 8.7% 191,793 3 62,663 8 712,391 $23.49

2011 3q 407 11,436,122 1,124,006 9.8% 294,485 5 111,315 11 775,054 $23.30

2011 2q 402 11,324,807 1,307,176 11.5% 59,527 4 42,811 13 224,664 $23.91

2011 1q 398 11,281,996 1,323,892 11.7% 92,657 4 27,636 12 216,789 $23.84



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Houston Office MarketT h i r d Q u a r t e r 2 0 1 4

The CoStarOffice Report

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Third Quarter 2014

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©2014 CoStar Group, Inc. The CoStar Office Report A

Third Quarter 2014 – Houston

Table of ContentsTable of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AMethodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CTerms & Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DMarket Highlights & Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1CoStar Markets & Submarkets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Inventory & Development Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Inventory & Development AnalysisSelect Top DeliveriesSelect Top Under Construction Properties

Figures at a Glance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Figures at a Glance by Class & MarketFigures at a Glance by Class & SubmarketFigures at a Glance Grouped by CBD vs SuburbanHistorical Figures at a Glance

Leasing Activity Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Select Top Lease Transactions

Sales Activity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Sales Activity AnalysisSelect Top Sales TransactionsAustin County Market

Analysis of Individual CoStar Submarket Clusters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Bellaire MarketDowntown MarketE Fort Bend Co/Sugar Land MarketFM 1960 MarketGreenway Plaza MarketGulf Freeway/Pasadena MarketI-10 East MarketKaty Freeway MarketKingwood/Humble MarketNASA/Clear Lake MarketNorth Belt MarketNortheast Near MarketNorthwest MarketRichmond/Fountainview MarketSan Felipe/Voss MarketSan Jacinto County MarketSouth MarketSouth Hwy 35 MarketSouth Main/Medical Center MarketSouthwest MarketWest Loop MarketWestchase MarketWoodlands Market



Houston – Third Quarter 2014




MethodologyThe 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.

© Copyright 2012 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

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





©2014 CoStar Group, Inc. The CoStar Office Report E


Terms & DefinitionsAvailability Rate: The ratio of available space to total rentable space, calculated by dividing the total available square feet by the total rentable square feet.Available Space: The total amount of space that is currently being marketed as available for lease in a given time period. It includes any space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date. Build-to-Suit: A term describing a particular property, developed specifically for a certain tenant to occupy, with structural features, systems, or improvement work designed specifically for the needs of that tenant. A build-to-suit can be leased or owned by the tenant. In a leased build-to-suit, a tenant will usually have a long term lease on the space.Buyer: The individual, group, company, or entity that has purchased a commercial real estate asset.Cap Rate: Short for capitalization rate. The Cap Rate is a calculation that reflects the relationship between one year’s net operating income and the current market value of a particular property. The Cap Rate is calculated by dividing the annual net operating income by the sales price (or asking sales price).CBD: Abbreviation for Central Business District. (See also: Central Business District)Central Business District: The designations of Central Business District (CBD) and Suburban refer to a particular geographic area within a metropolitan statistical area (MSA) describing the level of real estate development found there. The CBD is characterized by a high density, well organized core within the largest city of a given MSA.Class A: A classification used to describe buildings that generally qualify as extremely desirable investment-grade properties and com-mand the highest rents or sale prices compared to other buildings in the same market. Such buildings are well located and provide efficient tenant layouts as well as high quality, and in some buildings, one-of-a-kind floor plans. They can be an architectural or historical landmark designed by prominent architects. These buildings contain a modern mechanical system, and have above-average maintenance and management as well as the best quality materials and workmanship in their trim and interior fittings. They are generally the most attractive and eagerly sought by investors willing to pay a premium for quality.Class B: A classification used to describe buildings that generally qualify as a more speculative investment, and as such, command lower rents or sale prices compared to Class A properties. Such buildings offer utilitarian space without special attractions, and have ordinary design, if new or fairly new; good to excellent design if an older non-landmark building. These buildings typically have average to good maintenance, management and tenants. They are less appealing to tenants than Class A properties, and may be deficient in a number of respects including floor plans, condition and facilities. They lack prestige and must depend chiefly on a lower price to attract tenants and investors.Class C: A classification used to describe buildings that generally qualify as no-frills, older buildings that offer basic space and command lower rents or sale prices compared to other buildings in the same market. Such buildings typically have below-average maintenance and management, and could have mixed or low tenant prestige, inferior elevators, and/or mechanical/electrical systems. These build-ings lack prestige and must depend chiefly on a lower price to attract tenants and investors.Construction Starts: Buildings that began construction during a specific period of time. (See also: Deliveries)Contiguous Blocks of Space: Space within a building that is, or is able to be joined together into a single contiguous space.Deliveries: Buildings that complete construction during a specified period of time. In order for space to be considered delivered, a certifi-

cate of occupancy must have been issued for the property.Delivery Date: The date a building completes construction and receives a certificate of occupancy.Developer: The company, entity or individual that transforms raw land to improved property by use of labor, capital and entrepreneurial efforts. Direct Space: Space that is being offered for lease directly from the landlord or owner of a building, as opposed to space being offered in a building by another tenant (or broker of a tenant) trying to sublet a space that has already been leased.Existing Inventory: The square footage of buildings that have received a certificate of occupancy and are able to be occupied by tenants. It does not include space in buildings that are either planned, under construction or under renovation.Flex Building: A type of building designed to be versatile, which may be used in combination with office (corporate headquarters), research and development, quasi-retail sales, and including but not limited to industrial, warehouse, and distribution uses. A typical flex building will be one or two stories with at least half of the rentable area being used as office space, have ceiling heights of 16 feet or less, and have some type of drive-in door, even though the door may be glassed in or sealed off.Full Service Rental Rate: Rental rates that include all operating expenses such as utilities, electricity, janitorial services, taxes and insur-ance.Gross Absorption: The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing Activity, which is the sum of all space leased over a certain period of time. Unless otherwise noted Gross Absorption includes direct and sublease space.Growth in Inventory: The change in size of the existing square footage in a given area over a given period of time, generally due to the construction of new buildings.Industrial Building: A type of building adapted for such uses as the assemblage, processing, and/or manufacturing of products from raw materials or fabricated parts. Additional uses include warehous-ing, distribution, and maintenance facilities. The primary purpose of the space is for storing, producing, assembling, or distributing product.Landlord Rep: (Landlord Representative) In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the owner/landlord is referred to as the Landlord Rep.Leased Space: All the space that has a financial lease obligation. It includes all leased space, regardless of whether the space is currently occupied by a tenant. Leased space also includes space being offered for sublease.Leasing Activity: The volume of square footage that is commit-ted to and signed under a lease obligation for a specific building or market in a given period of time. It includes direct leases, subleases and renewals of existing leases. It also includes any pre-leasing activity in planned, under construction, or under renovation buildings.Market: Geographic boundaries that serve to delineate core areas that are competitive with each other and constitute a generally accepted primary competitive set of areas. Markets are building-type specific, and are non-overlapping contiguous geographic designations having a cumulative sum that matches the boundaries of the entire Region (See also: Region). Markets can be further subdivided into Submarkets. (See also: Submarkets)Multi-Tenant: Buildings that house more than one tenant at a given time. Usually, multi-tenant buildings were designed and built to accommodate many different floor plans and designs for different





©2014 CoStar Group, Inc. The CoStar Office Report E


tenant needs. (See also: Tenancy).Net Absorption: The net change in occupied space over a given period of time. Unless otherwise noted Net Absorption includes direct and sublease space.Net Rental Rate: A rental rate that excludes certain expenses that a tenant could incur in occupying office space. Such expenses are expected to be paid directly by the tenant and may include janitorial costs, electricity, utilities, taxes, insurance and other related costs.New Space: Sometimes called first generation space, refers to space that has never been occupied and/or leased by a tenant.Occupied Space: Space that is physically occupied by a tenant. It does not include leased space that is not currently occupied by a tenant.Office Building: A type of commercial building used exclusively or primarily for office use (business), as opposed to manufacturing, warehousing, or other uses. Office buildings may sometimes have other associated uses within part of the building, i.e., retail sales, finan-cial, or restaurant, usually on the ground floor.Owner: The company, entity, or individual that holds title on a given building or property.Planned/Proposed: The status of a building that has been announced for future development but not yet started construction.Preleased Space: The amount of space in a building that has been leased prior to its construction completion date, or certificate of occupancy date.Price/SF: Calculated by dividing the price of a building (either sales price or asking sales price) by the Rentable Building Area (RBA).Property Manager: The company and/or person responsible for the day-to-day operations of a building, such as cleaning, trash removal, etc. The property manager also makes sure that the various systems within the building, such as the elevators, HVAC, and electrical systems, are functioning properly.Quoted Rental Rate: The asking rate per square foot for a par-ticular building or unit of space by a broker or property owner. Quoted rental rates may differ from the actual rates paid by tenants following the negotiation of all terms and conditions in a specific lease. RBA: Abbreviation for Rentable Building Area. (See also: Rentable Building Area)Region: Core areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Regions are further divided into market areas, called Markets. (See also: Markets)Relet Space: Sometimes called second generation or direct space, refers to existing space that has previously been occupied by another tenant.Rentable Building Area: (RBA) The total square footage of a building that can be occupied by, or assigned to a tenant for the purpose of determining a tenant’s rental obligation. Generally RBA includes a percentage of common areas including all hallways, main lobbies, bathrooms, and telephone closets.Rental Rates: The annual costs of occupancy for a particular space quoted on a per square foot basis.Sales Price: The total dollar amount paid for a particular property at a particular point in time.Sales Volume: The sum of sales prices for a given group of buildings in a given time period.Seller: The individual, group, company, or entity that sells a particular commercial real estate asset.SF: Abbreviation for Square Feet.Single-Tenant: Buildings that are occupied, or intended to be occupied by a single tenant. (See also: Build-to-suit and Tenancy)

Sublease Space: Space that has been leased by a tenant and is being offered for lease back to the market by the tenant with the lease obligation. Sublease space is sometimes referred to as sublet space.Submarkets: Specific geographic boundaries that serve to delin-eate a core group of buildings that are competitive with each other and constitute a generally accepted primary competitive set, or peer group. Submarkets are building type specific (office, industrial, retail, etc.), with distinct boundaries dependent on different factors relevant to each building type. Submarkets are non-overlapping, contiguous geographic designations having a cumulative sum that matches the boundaries of the Market they are located within (See also: Market).Suburban: The Suburban and Central Business District (CBD) des-ignations refer to a particular geographic area within a metropolitan statistical area (MSA). Suburban is defined as including all office inven-tory not located in the CBD. (See also: CBD)Tenancy: A term used to indicate whether or not a building is occu-pied by multiple tenants (See also: Multi-tenant) or a single tenant. (See also: Single-tenant)Tenant Rep: Tenant Rep stands for Tenant Representative. In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the tenant is referred to as a Tenant Rep.Time On Market: A measure of how long a currently available space has been marketed for lease, regardless of whether it is vacant or occupied.Under Construction: Buildings in a state of construction, up until they receive their certificate of occupancy. In order for CoStar to consider a building under construction, the site must have a concrete foundation in place. Abbreviated UC.Vacancy Rate: A measurement expressed as a percentage of the total amount of physically vacant space divided by the total amount of existing inventory. Under construction space generally is not included in vacancy calculations.Vacant Space: Space that is not currently occupied by a tenant, regardless of any lease obligation that may be on the space. Vacant space could be space that is either available or not available. For example, sublease space that is currently being paid for by a tenant but not occupied by that tenant, would be considered vacant space. Likewise, space that has been leased but not yet occupied because of finish work being done, would also be considered vacant space. Weighted Average Rental Rate: Rental rates that are cal-culated by factoring in, or weighting, the square footage associated with each particular rental rate. This has the effect of causing rental rates on larger spaces to affect the average more than that of smaller spaces. The weighted average rental rate is calculated by taking the ratio of the square footage associated with the rental rate on each individual available space to the square footage associated with rental rates on all available spaces, multiplying the rental rate by that ratio, and then adding together all the resulting numbers. Unless specifically specified otherwise, rental rate averages include both Direct and Sublet available spaces.Year Built: The year in which a building completed construction and was issued a certificate of occupancy.YTD: Abbreviation for Year-to-Date. Describes statistics that are cumulative from the beginning of a calendar year through whatever time period is being studied.




Overview

Houston’s Vacancy Increases to 11.2% Net Absorption Positive 461,557 SF in the Quarter

The Houston Office market ended the third quarter 2014 with a vacancy rate of 11.2%. The vacancy rate was up over the previous quarter, with net absorption total-

ing positive 461,557 square feet in the third quarter. Vacant sublease space increased in the quarter, ending the quarter at 1,905,415 square feet. Rental rates ended the third quarter at $27.06, an increase over the previous quarter. A total of 26 buildings delivered to the market in the quarter totaling 1,649,183 square feet, with 17,610,233 square feet still under construction at the end of the quarter.

AbsorptionNet absorption for the overall Houston office market was

positive 461,557 square feet in the third quarter 2014. That compares to positive 2,011,093 square feet in the second quar-ter 2014, positive 2,710,040 square feet in the first quarter 2014, and positive 1,791,589 square feet in the fourth quarter 2013.

Tenants moving out of large blocks of space in 2014 include: Technip USA Inc. moving out of 231,872 square feet at Energy Tower I; AMEC Paragon moving out of 167,964 square feet at Clay Road Building; and NetIQ Corporation moving out of 164,967 square feet at Park Towers North.

Tenants moving into large blocks of space in 2014 include: Technip moving into 428,831 square feet at Energy Tower III; Mustang Engineering moving into 225,884 square feet at Westgate III; and Repsol Services Company moving into 200,000 square feet at Research Forest Lakeside - Building 5 - Repsol.

The Class-A office market recorded net absorption of positive 609,895 square feet in the third quarter 2014, com-

pared to positive 1,298,945 square feet in the second quarter 2014, positive 2,166,896 in the first quarter 2014, and positive 1,282,873 in the fourth quarter 2013.

The Class-B office market recorded net absorption of negative (234,454) square feet in the third quarter 2014, com-pared to positive 643,145 square feet in the second quarter 2014, positive 462,168 in the first quarter 2014, and positive 558,301 in the fourth quarter 2013.

The Class-C office market recorded net absorption of positive 86,116 square feet in the third quarter 2014 compared to positive 69,003 square feet in the second quarter 2014, posi-tive 80,976 in the first quarter 2014, and negative (49,585) in the fourth quarter 2013.

Net absorption for Houston’s central business district was positive 58,046 square feet in the third quarter 2014. That compares to positive 281,091 square feet in the second quarter 2014, positive 16,924 in the first quarter 2014, and negative (278,631) in the fourth quarter 2013.

Net absorption for the suburban markets was positive 403,511 square feet in the third quarter 2014. That compares to positive 1,730,002 square feet in second quarter 2014, positive 2,693,116 in the first quarter 2014, and positive 2,070,220 in the fourth quarter 2013.

VacancyThe office vacancy rate in the Houston market area

increased to 11.2% at the end of the third quarter 2014. The vacancy rate was 10.8% at the end of the second quarter 2014, 11.2% at the end of the first quarter 2014, and 11.5% at the end of the fourth quarter 2013.





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Houston � Third Quarter 2014

Houston Office MarketThird Quarter 2014 – Houston



Overview

Class-A projects reported a vacancy rate of 9.8% at the end of the third quarter 2014, 9.2% at the end of the first and the second quarter 2014, and 9.7% at the end of the fourth quarter 2013.

Class-B projects reported a vacancy rate of 13.1% at the end of the third quarter 2014, 12.8% at the end of the second quarter 2014, 13.3% at the end of the first quarter 2014, and 13.5% at the end of the fourth quarter 2013.

Class-C projects reported a vacancy rate of 9.4% at the end of the third quarter 2014, 9.6% at the end of second quar-ter 2014, 10.1% at the end of the first quarter 2014, and 10.5% at the end of the fourth quarter 2013.

The overall vacancy rate in Houston’s central business district at the end of the third quarter 2014 decreased to 9.9%. The vacancy rate was 10.0% at the end of the second quarter 2014, 10.8% at the end of the first quarter 2014, and 11.6% at the end of the fourth quarter 2013.

The vacancy rate in the suburban markets increased to 11.5% in the third quarter 2014. The vacancy rate was 11.0% at the end of the second quarter 2014, 11.2% at the end of the first quarter 2014, and 11.5% at the end of the fourth quarter 2013.

Largest Lease SigningsThe largest lease signings occurring in 2014 included:

the 224,833-square-foot lease signed by American Bureau of Shipping at One Greenspoint Place in the North Belt mar-ket; the 150,000-square-foot deal signed by GE Oil & Gas at Westway Plaza in the FM 1960 market; and the 127,684-square-foot lease signed by Energy XXI Services at One City Centre in the Downtown market.

Sublease VacancyThe amount of vacant sublease space in the Houston

market increased to 1,905,415 square feet by the end of the third quarter 2014, from 1,773,464 square feet at the end of the second quarter 2014. There was 1,997,007 square feet vacant

at the end of the first quarter 2014 and 1,933,797 square feet at the end of the fourth quarter 2013.

Houston’s Class-A projects reported vacant sublease space of 1,175,247 square feet at the end of third quarter 2014, down from the 1,241,664 square feet reported at the end of the second quarter 2014. There were 1,331,836 square feet of sublease space vacant at the end of the first quarter 2014, and 1,281,368 square feet at the end of the fourth quarter 2013.

Class-B projects reported vacant sublease space of 719,631 square feet at the end of the third quarter 2014, up from the 519,892 square feet reported at the end of the second quarter 2014. At the end of the first quarter 2014 there were 651,754 square feet, and at the end of the fourth quarter 2013 there were 640,390 square feet vacant.

Class-C projects reported decreased vacant sublease space from the second quarter 2014 to the third quarter 2014. Sublease vacancy went from 11,908 square feet to 10,537 square feet during that time. There was 13,417 square feet at the end of the first quarter 2014, and 12,039 square feet at the end of the fourth quarter 2013.

Sublease vacancy in Houston’s central business district stood at 590,982 square feet at the end of the third quarter 2014. It was 605,963 square feet at the end of the second quarter 2014, 700,169 square feet at the end of the first quarter 2014, and 702,203 square feet at the end of the fourth quarter 2013.

Sublease vacancy in the suburban markets ended the third quarter 2014 at 1,314,433 square feet. At the end of the second quarter 2014 sublease vacancy was 1,167,501 square feet, was 1,296,838 square feet at the end of the first quarter 2014, and was 1,231,594 square feet at the end of the fourth quarter 2013.

Rental RatesThe average quoted asking rental rate for available office

space, all classes, was $27.06 per square foot per year at the end of the third quarter 2014 in the Houston market area. This represented a 0.2% increase in quoted rental rates from the end of the second quarter 2014, when rents were reported at $27.01 per square foot.

The average quoted rate within the Class-A sector was $34.28 at the end of the third quarter 2014, while Class-B rates stood at $21.08, and Class-C rates at $16.29. At the end of the second quarter 2014, Class-A rates were $34.29 per square foot, Class-B rates were $20.99, and Class-C rates were $16.29.

The average quoted asking rental rate in Houston’s CBD was $38.23 at the end of the third quarter 2014, and $25.23 in the suburban markets. In the second quarter 2014, quoted rates were $37.36 in the CBD and $25.22 in the suburbs.





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0.750.87

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1.82 1.79

2.71

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Overview

Deliveries and ConstructionDuring the third quarter 2014, 26 buildings totaling

1,649,183 square feet were completed in the Houston market area. This compares to 21 buildings totaling 1,482,296 square feet that were completed in the second quarter 2014, 33 build-ings totaling 2,494,819 square feet completed in the first quar-ter 2014, and 999,366 square feet in 17 buildings completed in the fourth quarter 2013.

There were 17,610,233 square feet of office space under construction at the end of the third quarter 2014.

Some of the notable 2014 deliveries include: Anadarko Tower 2, a 550,000-square-foot facility that delivered in first quarter 2014 and is now 100% occupied, and Energy Tower III, a 428,831-square-foot building that delivered in first quarter 2014 and is now 100% occupied.

The largest projects underway at the end of third quar-ter 2014 were ExxonMobil Campus, a 3,000,000-square-foot building with 100% of its space pre-leased, and 2101 Citywest Blvd - Phillips 66, a 1,100,000-square-foot facility that is 100% pre-leased.

InventoryTotal office inventory in the Houston market area

amounted to 278,279,122 square feet in 6,500 buildings as of the end of the third quarter 2014. The Class-A office sector consisted of 117,229,597 square feet in 375 projects. There were 2,688 Class-B buildings totaling 121,039,348 square feet, and the Class-C sector consisted of 40,010,177 square feet in 3,437 buildings. Within the Office market there were 546 owner-occupied buildings accounting for 35,721,213 square feet of office space.

Sales ActivityTallying office building sales of 15,000 square feet or larg-

er, Houston office sales figures fell during the second quarter 2014 in terms of dollar volume compared to the first quarter of 2014.

In the second quarter, 10 office transactions closed with a total volume of $294,540,000. The 10 buildings totaled 1,460,466 square feet and the average price per square foot equated to $201.68 per square foot. That compares to 10 trans-

actions totaling $550,928,129 in the first quarter 2014. The total square footage in the first quarter was 2,130,303 square feet for an average price per square foot of $258.61.

Total office building sales activity in 2014 was down com-pared to 2013. In the first six months of 2014, the market saw 20 office sales transactions with a total volume of $845,468,129. The price per square foot averaged $235.46. In the same first six months of 2013, the market posted 31 transactions with a total volume of $1,749,144,622. The price per square foot aver-aged $224.99.

Cap rates have been lower in 2014, averaging 6.78% com-pared to the same period in 2013 when they averaged 8.50%.

One of the largest transactions that has occurred within the last four quarters in the Houston market is the sale of Heritage Plaza in Houston. This 1,277,672-square-foot office building sold for $425,700,000, or $333.18 per square foot. The property sold on 2/20/2014, at a 5.80% cap rate.”

Reports compiled by: Alfredo Negron, CoStar Senior Research Manager; Ernest Rodriguez, Senior Research Associate, Ben Harris, CoStar Research Associate II, Claire Meyer, CoStar Research Associate II Karen Kester, CoStar Research Associate II and Bryan McCaslin, CoStar Research Associate II.





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CoStar Submarket Clusters & SubmarketsIn 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.

Markets

Submarket Clusters Submarkets

Austin County Austin County

Bellaire Bellaire

Downtown CBD* Midtown

E Fort Bend Co/Sugar Land E Fort Bend Co/Sugar Land

FM 1960 FM 1960/Champions FM 1960/Hwy 249 FM 1960/I-45 North

Greenway Plaza Greenway Plaza

Gulf Freeway/Pasadena Gulf Freeway/Pasadena

I-10 East I-10 East

Katy Freeway Katy Freeway East Katy Freeway West

Kingwood/Humble Kingwood/Humble

NASA/Clear Lake NASA/Clear Lake

North Belt Greenspoint/IAH Greenspoint/N Belt West

Northeast Near Northeast Near

Northwest North Loop West Northwest Far Northwest Near

Richmond/Fountainview Richmond/Fountainview

San Felipe/Voss San Felipe/Voss

San Jacinto County San Jacinto County

South South

South Hwy 35 South Hwy 35

South Main/Medical Center South Main/Medical Center

Southwest Southwest Beltway 8 Southwest/Hillcroft

West Loop Galleria/Uptown Post Oak Park Riverway

Westchase Westchase

Woodlands Woodlands

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






Historical Deliveries 1982 - 2014

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

Construction Activity Markets Ranked by Under Construction Square Footage

# Bldgs Preleased SF Preleased % All Existing U/C

Katy Freeway 24 3,430,179 58.8% 55,940 243,059

Woodlands 15 4,321,591 94.9% 30,436 303,476

Westchase 3 1,517,000 83.5% 125,182 605,667

Downtown 3 425,032 26.0% 91,310 543,943

Northwest 5 734,020 54.1% 31,738 271,444

FM 1960 6 633,840 78.9% 22,040 133,875

West Loop 2 636,936 91.0% 177,959 349,913

Greenway Plaza 3 192,678 29.1% 45,578 220,686

South 2 42,700 39.6% 12,817 53,850

Gulf Freeway/Pasadena 1 0 0.0% 12,983 78,000

All Other 3 62,460 92.1% 33,502 22,600


Recent Deliveries Future Deliveries Leased & Un-Leased SF in Deliveries Preleased & Un-Leased SF in Properties Scheduled to Deliver


662,057

107,700

78,000

67,800

1,631,830

1,357,222

803,250

699,826

5,833,411

Market

Under Construction Inventory Average Bldg Size

Total RBA

4,552,137

1,817,000

25.125.8

13.6

5.74.4

1.1 1.4 1.4 1.80.6

1.8 1.5 1.1 0.5 0.4 0.9

3.65.1 4.5

2.6

4.93.8

1.9

5.04.0

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7.3 6.6

0.8

2.71.9

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11.0

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Historical Construction Starts & DeliveriesSquare Footage Per Quarter Starting and Completing Construction


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 51 350,187 245,806 70.2% $26.62 93,523 256,664

50,000 SF - 99,999 SF 9 615,735 422,009 68.5% $33.68 131,700 484,035

100,000 SF - 249,999 SF 14 2,271,041 1,810,656 79.7% $33.75 851,992 1,419,049

250,000 SF - 499,999 SF 5 1,839,335 1,663,305 90.4% $40.65 750,000 1,089,335

>= 500,000 SF 1 550,000 550,000 100.0% $0.00 550,000 0


Recent Development by Tenancy Existing Inventory ComparisonBased on RBA Developed for Single & Multi Tenant Use Based on Total RBA

2014 Deliveries


Currently Under Construction By Class By Space Type

0.300.10

1.52

0.12

4.70

1.42

1.911.74

1.39 1.46

2.22 2.16

4.79

3.75

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Class A Market Statistics Third Quarter 2014



Austin County 0 0 0 0 0.0% 0 0 0 $0.00

Bellaire 7 1,203,314 102,268 122,173 10.2% 69,086 0 0 $25.51

Downtown 39 33,477,725 2,783,648 3,342,319 10.0% 157,650 80,000 1,631,830 $42.30


FM 1960 21 3,854,007 487,759 533,986 13.9% 68,643 55,500 768,000 $27.04

Greenway Plaza 16 6,224,406 479,320 485,590 7.8% 11,084 0 648,275 $35.86

Gulf Freeway/Pasadena 1 22,706 526 526 2.3% 9,117 0 0 $27.59

I-10 East 0 0 0 0 0.0% 0 0 0 $0.00

Katy Freeway 81 19,104,517 990,210 1,063,483 5.6% 1,939,165 2,504,212 5,679,708 $33.57

Kingwood/Humble 2 131,665 35,936 35,936 27.3% 10,855 0 0 $31.98

NASA/Clear Lake 15 2,023,551 103,382 104,693 5.2% 72,755 55,000 0 $24.56

North Belt 24 5,438,248 646,048 677,062 12.5% (128,464) 0 0 $28.34

Northeast Near 0 0 0 0 0.0% 0 0 0 $0.00

Northwest 23 4,030,032 467,696 548,301 13.6% (20,978) 0 1,357,222 $25.48

Richmond/Fountainview 0 0 0 0 0.0% 0 0 0 $0.00

San Felipe/Voss 3 1,720,793 202,143 204,139 11.9% 60,360 0 0 $35.15


South 2 250,000 0 7,783 3.1% (7,783) 0 100,000 $27.19

South Hwy 35 0 0 0 0 0.0% 0 0 0 $0.00


Southwest 9 2,058,852 297,095 297,095 14.4% 26,172 0 0 $17.56

West Loop 42 16,080,891 1,486,547 1,662,633 10.3% 355,443 164,575 699,826 $35.63

Westchase 29 7,805,674 1,033,776 1,087,214 13.9% 275,865 440,092 1,817,000 $37.24

Woodlands 26 5,457,743 457,845 516,543 9.5% 1,000,376 1,230,032 4,490,837 $34.11

Totals 375 117,229,597 10,358,807 11,534,054 9.8% 4,075,736 4,739,411 17,249,698 $34.28


Class B Market Statistics Third Quarter 2014



Austin County 5 41,075 0 0 0.0% 0 0 0 $0.00

Bellaire 32 3,019,949 143,876 149,910 5.0% 8,173 4,960 0 $22.45

Downtown 170 19,682,202 1,732,867 1,769,876 9.0% 192,288 0 0 $26.50


FM 1960 356 8,469,609 1,337,700 1,362,800 16.1% 78,758 37,320 35,250 $17.38

Greenway Plaza 48 4,184,214 292,593 302,738 7.2% 40,678 0 13,782 $24.87


I-10 East 25 731,906 98,006 98,006 13.4% 20,934 0 0 $16.69

Katy Freeway 316 13,203,352 1,336,246 1,629,989 12.3% (341,969) 80,789 153,703 $23.11

Kingwood/Humble 68 1,566,025 101,415 101,415 6.5% 4,399 0 0 $21.15

NASA/Clear Lake 207 5,634,378 1,126,368 1,137,982 20.2% 165,373 123,035 0 $18.99

North Belt 76 6,592,566 1,234,482 1,318,024 20.0% 137,029 0 0 $15.48

Northeast Near 27 662,292 93,603 93,603 14.1% 26,824 0 0 $19.44

Northwest 160 8,543,682 1,271,084 1,297,682 15.2% 124,970 13,458 0 $19.53

Richmond/Fountainview 26 963,566 206,805 206,805 21.5% 13,193 0 0 $17.44

San Felipe/Voss 38 3,573,869 324,841 346,467 9.7% 3,593 0 0 $22.75


South 79 1,582,843 184,587 187,087 11.8% (1,975) 8,086 7,700 $26.99

South Hwy 35 33 350,280 13,683 13,683 3.9% (6,191) 1,410 0 $16.70


Southwest 143 7,671,858 1,988,496 1,989,746 25.9% (65,930) 0 0 $16.14

West Loop 62 6,882,573 806,352 832,677 12.1% 21,802 0 0 $26.72

Westchase 73 7,888,629 885,868 922,391 11.7% (11,365) 201,700 0 $20.18

Woodlands 297 7,484,288 556,583 584,660 7.8% 335,877 348,936 61,300 $27.06

Totals 2,688 121,039,348 15,178,278 15,897,909 13.1% 870,859 886,887 360,535 $21.08




Figures at a Glance






Class C Market Statistics Third Quarter 2014



Austin County 12 37,306 2,500 2,500 6.7% (2,500) 0 0 $0.00

Bellaire 42 794,464 62,463 62,463 7.9% 6,229 0 0 $18.86

Downtown 428 5,004,479 803,251 803,251 16.1% 73,509 0 0 $19.47

E Fort Bend Co/Sugar Land 97 1,026,186 44,445 46,747 4.6% 3,661 0 0 $17.23

FM 1960 312 2,861,638 214,394 214,394 7.5% 57,050 0 0 $15.56

Greenway Plaza 207 1,942,979 298,544 298,544 15.4% 38,914 0 0 $18.12

Gulf Freeway/Pasadena 370 3,334,842 288,011 291,426 8.7% 32,423 0 0 $15.92

I-10 East 82 648,662 119,580 119,580 18.4% (77,650) 0 0 $15.65

Katy Freeway 244 3,549,398 150,440 153,484 4.3% 47,493 0 0 $18.24

Kingwood/Humble 93 772,124 57,204 57,780 7.5% (9,162) 0 0 $18.34

NASA/Clear Lake 243 2,201,473 213,646 213,646 9.7% (17,418) 0 0 $17.68

North Belt 81 2,006,288 390,145 390,145 19.4% (23,228) 0 0 $13.31

Northeast Near 87 802,980 39,444 39,444 4.9% 12,901 0 0 $14.58

Northwest 318 3,326,857 236,223 236,223 7.1% 47,043 0 0 $15.33


San Felipe/Voss 8 75,542 4,000 4,000 5.3% 1,500 0 0 $15.07

San Jacinto County 1 7,500 7,500 7,500 100.0% 0 0 0 $0.00

South 127 833,051 151,553 151,553 18.2% (5,913) 0 0 $14.82

South Hwy 35 96 374,330 22,649 22,649 6.1% (9,249) 0 0 $17.13


Southwest 161 3,509,607 263,145 263,145 7.5% 19,368 0 0 $14.19

West Loop 28 527,064 6,769 6,769 1.3% 2,943 0 0 $23.08

Westchase 31 954,847 69,492 69,492 7.3% (1,302) 0 0 $16.80

Woodlands 143 1,241,285 51,055 52,255 4.2% (15,754) 0 0 $21.19

Totals 3,437 40,010,177 3,759,014 3,769,551 9.4% 236,095 0 0 $16.29


Total Office Market Statistics Third Quarter 2014



Austin County 17 78,381 2,500 2,500 3.2% (2,500) 0 0 $0.00

Bellaire 81 5,017,727 308,607 334,546 6.7% 83,488 4,960 0 $24.11

Downtown 637 58,164,406 5,319,766 5,915,446 10.2% 423,447 80,000 1,631,830 $36.68

E Fort Bend Co/Sugar Land 347 9,345,511 1,041,874 1,211,422 13.0% 246,071 227,193 67,800 $24.34

FM 1960 689 15,185,254 2,039,853 2,111,180 13.9% 204,451 92,820 803,250 $19.66

Greenway Plaza 271 12,351,599 1,070,457 1,086,872 8.8% 90,676 0 662,057 $30.68

Gulf Freeway/Pasadena 522 6,777,116 723,305 726,720 10.7% 1,741 0 78,000 $19.89

I-10 East 107 1,380,568 217,586 217,586 15.8% (56,716) 0 0 $16.34

Katy Freeway 641 35,857,267 2,476,896 2,846,956 7.9% 1,644,689 2,585,001 5,833,411 $28.77

Kingwood/Humble 163 2,469,814 194,555 195,131 7.9% 6,092 0 0 $21.73

NASA/Clear Lake 465 9,859,402 1,443,396 1,456,321 14.8% 220,710 178,035 0 $19.57

North Belt 181 14,037,102 2,270,675 2,385,231 17.0% (14,663) 0 0 $22.61

Northeast Near 114 1,465,272 133,047 133,047 9.1% 39,725 0 0 $17.96

Northwest 501 15,900,571 1,975,003 2,082,206 13.1% 151,035 13,458 1,357,222 $21.41


San Felipe/Voss 49 5,370,204 530,984 554,606 10.3% 65,453 0 0 $29.60


South 208 2,665,894 336,140 346,423 13.0% (15,671) 8,086 107,700 $22.76

South Hwy 35 129 724,610 36,332 36,332 5.0% (15,440) 1,410 0 $16.89


Southwest 313 13,240,317 2,548,736 2,549,986 19.3% (20,390) 0 0 $16.07

West Loop 132 23,490,528 2,299,668 2,502,079 10.7% 380,188 164,575 699,826 $32.92

Westchase 133 16,649,150 1,989,136 2,079,097 12.5% 263,198 641,792 1,817,000 $31.08

Woodlands 466 14,183,316 1,065,483 1,153,458 8.1% 1,320,499 1,578,968 4,552,137 $30.17

Totals 6,500 278,279,122 29,296,099 31,201,514 11.2% 5,182,690 5,626,298 17,610,233 $27.06




Figures at a Glance






Figures at a Glance

Class A Submarket Statistics Third Quarter 2014



Austin County 0 0 0 0 0.0% 0 0 0 $0.00

Bellaire 7 1,203,314 102,268 122,173 10.2% 69,086 0 0 $25.51

CBD 33 31,444,591 2,508,041 3,066,712 9.8% 199,854 0 1,464,268 $42.78


FM 1960/Champions 1 150,000 0 0 0.0% 0 0 0 $0.00

FM 1960/Hwy 249 19 3,499,186 487,759 533,986 15.3% 68,643 55,500 768,000 $27.04

FM 1960/I-45 North 1 204,821 0 0 0.0% 0 0 0 $0.00

Galleria/Uptown 30 12,076,302 990,489 1,153,716 9.6% 364,936 164,575 600,000 $36.21

Greenspoint/IAH 7 1,093,667 138,646 162,043 14.8% (45,269) 0 0 $21.61


Greenway Plaza 16 6,224,406 479,320 485,590 7.8% 11,084 0 648,275 $35.86

Gulf Freeway/Pasaden. 1 22,706 526 526 2.3% 9,117 0 0 $27.59

I-10 East 0 0 0 0 0.0% 0 0 0 $0.00


Katy Freeway West 64 14,857,858 868,134 917,646 6.2% 1,817,001 2,504,212 4,601,956 $33.01

Kingwood/Humble 2 131,665 35,936 35,936 27.3% 10,855 0 0 $31.98

Midtown 6 2,033,134 275,607 275,607 13.6% (42,204) 80,000 167,562 $36.92

NASA/Clear Lake 15 2,023,551 103,382 104,693 5.2% 72,755 55,000 0 $24.56

North Loop West 5 1,058,820 255,541 303,252 28.6% 25,854 0 0 $26.04

Northeast Near 0 0 0 0 0.0% 0 0 0 $0.00

Northwest Far 17 2,733,828 212,155 245,049 9.0% (46,832) 0 1,357,222 $25.25

Northwest Near 1 237,384 0 0 0.0% 0 0 0 $0.00

Post Oak Park 7 2,118,776 348,906 348,906 16.5% 7,619 0 99,826 $35.17

Richmond/Fountainvie. 0 0 0 0 0.0% 0 0 0 $0.00

Riverway 5 1,885,813 147,152 160,011 8.5% (17,112) 0 0 $31.72

San Felipe/Voss 3 1,720,793 202,143 204,139 11.9% 60,360 0 0 $35.15


South 2 250,000 0 7,783 3.1% (7,783) 0 100,000 $27.19

South Hwy 35 0 0 0 0 0.0% 0 0 0 $0.00


Southwest Beltway 8 3 573,500 114,772 114,772 20.0% 11,442 0 0 $17.13


Westchase 29 7,805,674 1,033,776 1,087,214 13.9% 275,865 440,092 1,817,000 $37.24

Woodlands 26 5,457,743 457,845 516,543 9.5% 1,000,376 1,230,032 4,490,837 $34.11

Totals 375 117,229,597 10,358,807 11,534,054 9.8% 4,075,736 4,739,411 17,249,698 $34.28








Figures at a Glance

Class B Submarket Statistics Third Quarter 2014



Austin County 5 41,075 0 0 0.0% 0 0 0 $0.00

Bellaire 32 3,019,949 143,876 149,910 5.0% 8,173 4,960 0 $22.45

CBD 57 15,216,208 1,208,943 1,241,254 8.2% 117,648 0 0 $27.59


FM 1960/Champions 96 2,713,601 717,771 717,771 26.5% 6,120 0 7,850 $13.92

FM 1960/Hwy 249 197 3,916,573 396,721 421,821 10.8% 56,547 37,320 12,400 $22.22

FM 1960/I-45 North 63 1,839,435 223,208 223,208 12.1% 16,091 0 15,000 $18.08

Galleria/Uptown 26 3,769,292 281,804 300,574 8.0% (20,670) 0 0 $26.47

Greenspoint/IAH 26 1,870,897 205,080 205,080 11.0% 12,920 0 0 $17.00

Greenspoint/N Belt W. 50 4,721,669 1,029,402 1,112,944 23.6% 124,109 0 0 $15.18

Greenway Plaza 48 4,184,214 292,593 302,738 7.2% 40,678 0 13,782 $24.87


I-10 East 25 731,906 98,006 98,006 13.4% 20,934 0 0 $16.69

Katy Freeway East 72 3,569,522 519,171 582,806 16.3% (27,099) 0 15,948 $23.48

Katy Freeway West 244 9,633,830 817,075 1,047,183 10.9% (314,870) 80,789 137,755 $22.94

Kingwood/Humble 68 1,566,025 101,415 101,415 6.5% 4,399 0 0 $21.15

Midtown 113 4,465,994 523,924 528,622 11.8% 74,640 0 0 $24.10

NASA/Clear Lake 207 5,634,378 1,126,368 1,137,982 20.2% 165,373 123,035 0 $18.99

North Loop West 75 3,676,721 752,033 762,524 20.7% 105,708 13,458 0 $20.74

Northeast Near 27 662,292 93,603 93,603 14.1% 26,824 0 0 $19.44

Northwest Far 65 3,890,177 490,458 506,565 13.0% (14,397) 0 0 $18.38

Northwest Near 20 976,784 28,593 28,593 2.9% 33,659 0 0 $16.57

Post Oak Park 22 2,072,168 385,945 388,971 18.8% 56,326 0 0 $26.92

Richmond/Fountainvie. 26 963,566 206,805 206,805 21.5% 13,193 0 0 $17.44

Riverway 14 1,041,113 138,603 143,132 13.7% (13,854) 0 0 $26.65

San Felipe/Voss 38 3,573,869 324,841 346,467 9.7% 3,593 0 0 $22.75


South 79 1,582,843 184,587 187,087 11.8% (1,975) 8,086 7,700 $26.99

South Hwy 35 33 350,280 13,683 13,683 3.9% (6,191) 1,410 0 $16.70


Southwest Beltway 8 116 5,849,623 1,521,834 1,523,084 26.0% (66,310) 0 0 $16.46

Southwest/Hillcroft 27 1,822,235 466,662 466,662 25.6% 380 0 0 $14.09

Westchase 73 7,888,629 885,868 922,391 11.7% (11,365) 201,700 0 $20.18

Woodlands 297 7,484,288 556,583 584,660 7.8% 335,877 348,936 61,300 $27.06

Totals 2,688 121,039,348 15,178,278 15,897,909 13.1% 870,859 886,887 360,535 $21.08








Figures at a Glance

Class C Submarket Statistics Third Quarter 2014



Austin County 12 37,306 2,500 2,500 6.7% (2,500) 0 0 $0.00

Bellaire 42 794,464 62,463 62,463 7.9% 6,229 0 0 $18.86

CBD 72 2,253,139 530,029 530,029 23.5% 38,559 0 0 $18.91

E Fort Bend Co/Sugar. 97 1,026,186 44,445 46,747 4.6% 3,661 0 0 $17.23

FM 1960/Champions 113 1,142,621 128,317 128,317 11.2% 8,636 0 0 $14.76

FM 1960/Hwy 249 164 1,226,201 45,478 45,478 3.7% 4,878 0 0 $14.67

FM 1960/I-45 North 35 492,816 40,599 40,599 8.2% 43,536 0 0 $17.79

Galleria/Uptown 7 132,598 0 0 0.0% 0 0 0 $0.00

Greenspoint/IAH 34 413,590 54,190 54,190 13.1% 12,120 0 0 $15.36


Greenway Plaza 207 1,942,979 298,544 298,544 15.4% 38,914 0 0 $18.12

Gulf Freeway/Pasaden. 370 3,334,842 288,011 291,426 8.7% 32,423 0 0 $15.92

I-10 East 82 648,662 119,580 119,580 18.4% (77,650) 0 0 $15.65

Katy Freeway East 146 2,577,372 93,207 94,811 3.7% 46,251 0 0 $18.03

Katy Freeway West 98 972,026 57,233 58,673 6.0% 1,242 0 0 $18.57

Kingwood/Humble 93 772,124 57,204 57,780 7.5% (9,162) 0 0 $18.34

Midtown 356 2,751,340 273,222 273,222 9.9% 34,950 0 0 $20.94

NASA/Clear Lake 243 2,201,473 213,646 213,646 9.7% (17,418) 0 0 $17.68

North Loop West 197 1,486,338 63,657 63,657 4.3% 43,834 0 0 $16.26

Northeast Near 87 802,980 39,444 39,444 4.9% 12,901 0 0 $14.58

Northwest Far 87 1,103,029 72,575 72,575 6.6% 221 0 0 $16.64

Northwest Near 34 737,490 99,991 99,991 13.6% 2,988 0 0 $13.69

Post Oak Park 17 235,101 4,500 4,500 1.9% (300) 0 0 $27.13


Riverway 4 159,365 2,269 2,269 1.4% 3,243 0 0 $20.85

San Felipe/Voss 8 75,542 4,000 4,000 5.3% 1,500 0 0 $15.07


South 127 833,051 151,553 151,553 18.2% (5,913) 0 0 $14.82

South Hwy 35 96 374,330 22,649 22,649 6.1% (9,249) 0 0 $17.13


Southwest Beltway 8 89 1,525,213 79,548 79,548 5.2% 11,204 0 0 $14.56


Westchase 31 954,847 69,492 69,492 7.3% (1,302) 0 0 $16.80

Woodlands 143 1,241,285 51,055 52,255 4.2% (15,754) 0 0 $21.19

Totals 3,437 40,010,177 3,759,014 3,769,551 9.4% 236,095 0 0 $16.29








Figures at a Glance

Total Office Submarket Statistics Third Quarter 2014



Austin County 17 78,381 2,500 2,500 3.2% (2,500) 0 0 $0.00

Bellaire 81 5,017,727 308,607 334,546 6.7% 83,488 4,960 0 $24.11

CBD 162 48,913,938 4,247,013 4,837,995 9.9% 356,061 0 1,464,268 $38.23

E Fort Bend Co/Sugar. 347 9,345,511 1,041,874 1,211,422 13.0% 246,071 227,193 67,800 $24.34

FM 1960/Champions 210 4,006,222 846,088 846,088 21.1% 14,756 0 7,850 $14.08

FM 1960/Hwy 249 380 8,641,960 929,958 1,001,285 11.6% 130,068 92,820 780,400 $24.33

FM 1960/I-45 North 99 2,537,072 263,807 263,807 10.4% 59,627 0 15,000 $18.00

Galleria/Uptown 63 15,978,192 1,272,293 1,454,290 9.1% 344,266 164,575 600,000 $34.41

Greenspoint/IAH 67 3,378,154 397,916 421,313 12.5% (20,229) 0 0 $19.32

Greenspoint/N Belt W. 114 10,658,948 1,872,759 1,963,918 18.4% 5,566 0 0 $23.14

Greenway Plaza 271 12,351,599 1,070,457 1,086,872 8.8% 90,676 0 662,057 $30.68

Gulf Freeway/Pasaden. 522 6,777,116 723,305 726,720 10.7% 1,741 0 78,000 $19.89

I-10 East 107 1,380,568 217,586 217,586 15.8% (56,716) 0 0 $16.34


Katy Freeway West 406 25,463,714 1,742,442 2,023,502 7.9% 1,503,373 2,585,001 4,739,711 $29.10

Kingwood/Humble 163 2,469,814 194,555 195,131 7.9% 6,092 0 0 $21.73

Midtown 475 9,250,468 1,072,753 1,077,451 11.6% 67,386 80,000 167,562 $28.32

NASA/Clear Lake 465 9,859,402 1,443,396 1,456,321 14.8% 220,710 178,035 0 $19.57

North Loop West 277 6,221,879 1,071,231 1,129,433 18.2% 175,396 13,458 0 $21.86

Northeast Near 114 1,465,272 133,047 133,047 9.1% 39,725 0 0 $17.96

Northwest Far 169 7,727,034 775,188 824,189 10.7% (61,008) 0 1,357,222 $21.62

Northwest Near 55 1,951,658 128,584 128,584 6.6% 36,647 0 0 $14.35

Post Oak Park 46 4,426,045 739,351 742,377 16.8% 63,645 0 99,826 $31.58


Riverway 23 3,086,291 288,024 305,412 9.9% (27,723) 0 0 $28.90

San Felipe/Voss 49 5,370,204 530,984 554,606 10.3% 65,453 0 0 $29.60


South 208 2,665,894 336,140 346,423 13.0% (15,671) 8,086 107,700 $22.76

South Hwy 35 129 724,610 36,332 36,332 5.0% (15,440) 1,410 0 $16.89


Southwest Beltway 8 208 7,948,336 1,716,154 1,717,404 21.6% (43,664) 0 0 $16.37


Westchase 133 16,649,150 1,989,136 2,079,097 12.5% 263,198 641,792 1,817,000 $31.08

Woodlands 466 14,183,316 1,065,483 1,153,458 8.1% 1,320,499 1,578,968 4,552,137 $30.17

Totals 6,500 278,279,122 29,296,099 31,201,514 11.2% 5,182,690 5,626,298 17,610,233 $27.06








Figures at a Glance




CBD 33 31,444,591 2,508,041 3,066,712 9.8% 199,854 0 1,464,268 $42.78

Suburban 342 85,785,006 7,850,766 8,467,342 9.9% 3,875,882 4,739,411 15,785,430 $31.99

Totals 375 117,229,597 10,358,807 11,534,054 9.8% 4,075,736 4,739,411 17,249,698 $34.28





CBD 57 15,216,208 1,208,943 1,241,254 8.2% 117,648 0 0 $27.59

Suburban 2,631 105,823,140 13,969,335 14,656,655 13.9% 753,211 886,887 360,535 $20.58

Totals 2,688 121,039,348 15,178,278 15,897,909 13.1% 870,859 886,887 360,535 $21.08


Class C Market Statistics Third Quarter 2014



CBD 72 2,253,139 530,029 530,029 23.5% 38,559 0 0 $18.91

Suburban 3,365 37,757,038 3,228,985 3,239,522 8.6% 197,536 0 0 $16.04

Totals 3,437 40,010,177 3,759,014 3,769,551 9.4% 236,095 0 0 $16.29


Class A & B Market Statistics Third Quarter 2014



CBD 90 46,660,799 3,716,984 4,307,966 9.2% 317,502 0 1,464,268 $39.27

Suburban 2,973 191,608,146 21,820,101 23,123,997 12.1% 4,629,093 5,626,298 16,145,965 $26.16

Totals 3,063 238,268,945 25,537,085 27,431,963 11.5% 4,946,595 5,626,298 17,610,233 $28.07





CBD 162 48,913,938 4,247,013 4,837,995 9.9% 356,061 0 1,464,268 $38.23

Suburban 6,338 229,365,184 25,049,086 26,363,519 11.5% 4,826,629 5,626,298 16,145,965 $25.23

Totals 6,500 278,279,122 29,296,099 31,201,514 11.2% 5,182,690 5,626,298 17,610,233 $27.06












Figures at a Glance


Net Quoted


2014 3q 375 117,229,597 10,358,807 11,534,054 9.8% 609,895 10 1,459,971 46 17,249,698 $34.28 2014 2q 365 115,769,626 9,442,314 10,683,978 9.2% 1,298,945 9 1,411,830 51 17,840,189 $34.29 2014 1q 356 114,357,796 9,239,257 10,571,093 9.2% 2,166,896 5 1,867,610 52 15,637,032 $33.70 2013 4q 351 112,490,186 9,589,011 10,870,379 9.7% 1,282,873 4 758,346 41 12,783,178 $32.07 2013 3q 347 111,731,840 10,087,744 11,394,906 10.2% 1,960,369 9 1,945,170 34 11,430,949 $31.92 2013 2q 338 109,786,670 9,818,470 11,410,105 10.4% 465,343 2 544,163 35 11,330,010 $31.58 2013 1q 336 109,242,507 10,092,086 11,331,285 10.4% 143,002 1 100,000 32 10,673,460 $31.41 2012 335 109,142,507 10,774,192 11,374,287 10.4% 3,450,578 6 1,471,336 27 9,634,568 $31.15 2011 329 107,671,171 12,669,909 13,353,529 12.4% 2,416,306 4 2,075,237 8 2,388,910 $29.76 2010 326 106,015,421 13,486,608 14,114,085 13.3% 942,833 3 324,492 6 3,002,849 $28.98 2009 323 105,690,929 13,710,932 14,732,426 13.9% 1,845,254 22 5,104,921 7 3,071,341 $29.77 2008 301 100,586,008 10,619,677 11,472,759 11.4% 2,591,014 24 4,841,668 26 7,906,579 $29.49 2007 277 95,744,340 8,436,155 9,222,105 9.6% 4,315,701 16 2,703,445 33 8,036,885 $27.39 2006 261 93,040,895 9,678,800 10,834,361 11.6% 4,843,318 6 1,015,556 21 4,876,584 $23.48 2005 255 92,025,339 13,138,374 14,662,123 15.9% 2,483,259 11 1,566,877 8 1,614,689 $20.62 2004 244 90,458,462 13,795,857 15,578,505 17.2% (45,423) 3 407,955 12 2,108,730 $20.76



Net Quoted


2014 3q 2,688 121,039,348 15,178,278 15,897,909 13.1% (234,454) 16 189,212 21 360,535 $21.08 2014 2q 2,672 120,850,136 14,954,351 15,474,243 12.8% 643,145 12 70,466 31 425,647 $20.99 2014 1q 2,660 120,779,670 15,395,168 16,046,922 13.3% 462,168 28 627,209 40 357,358 $20.79 2013 4q 2,633 120,562,461 15,651,491 16,291,881 13.5% 558,301 13 241,020 60 912,237 $20.31 2013 3q 2,620 120,321,441 16,029,329 16,609,162 13.8% (27,013) 13 265,233 68 1,107,481 $20.03 2013 2q 2,607 120,056,208 15,779,718 16,316,916 13.6% 204,849 8 87,262 65 1,202,380 $19.85 2013 1q 2,599 119,968,946 15,948,553 16,434,503 13.7% (211,532) 6 249,317 54 1,027,546 $19.79 2012 2,593 119,719,629 15,493,611 15,973,654 13.3% 1,441,110 31 461,348 35 1,022,024 $19.61 2011 2,566 119,680,473 16,939,155 17,375,608 14.5% 778,327 38 569,036 23 422,815 $19.02 2010 2,528 119,111,437 17,018,656 17,584,899 14.8% 159,593 45 482,985 25 412,068 $18.88 2009 2,484 118,637,355 16,420,129 17,270,410 14.6% (714,094) 97 1,509,468 42 478,471 $19.26 2008 2,387 117,127,887 14,251,807 15,046,848 12.8% 910,584 141 2,324,721 83 1,333,169 $20.11 2007 2,247 114,867,439 13,096,429 13,696,984 11.9% 2,708,942 132 2,067,697 127 2,275,584 $19.25 2006 2,119 113,206,246 14,160,464 14,744,733 13.0% 3,435,167 108 2,651,222 119 1,937,597 $17.24 2005 2,013 110,694,581 14,734,870 15,668,235 14.2% 3,996,199 124 3,165,964 97 2,784,516 $16.16 2004 1,889 107,528,617 15,246,767 16,498,470 15.3% 1,741,110 79 1,328,200 119 3,574,560 $15.90



Net Quoted


2014 3q 6,500 278,279,122 29,296,099 31,201,514 11.2% 461,557 26 1,649,183 67 17,610,233 $27.06 2014 2q 6,474 276,629,939 28,240,424 30,013,888 10.8% 2,011,093 21 1,482,296 82 18,265,836 $27.01 2014 1q 6,454 275,267,637 28,665,672 30,662,679 11.1% 2,710,040 33 2,494,819 92 15,994,390 $26.60 2013 4q 6,429 273,285,806 29,457,091 31,390,888 11.5% 1,791,589 17 999,366 101 13,695,415 $25.49 2013 3q 6,415 272,423,802 30,422,986 32,320,473 11.9% 1,816,959 22 2,210,403 102 12,538,430 $25.18 2013 2q 6,393 270,213,399 29,730,365 31,927,029 11.8% 702,650 10 631,425 100 12,532,390 $24.58 2013 1q 6,383 269,581,974 30,202,273 31,998,254 11.9% (132,081) 7 349,317 86 11,701,006 $24.31 2012 6,377 269,335,302 30,509,269 31,619,501 11.7% 4,711,571 37 1,932,684 62 10,656,592 $24.41 2011 6,344 267,824,810 33,641,456 34,820,580 13.0% 2,725,734 46 2,677,138 31 2,811,725 $22.94 2010 6,302 265,905,660 34,412,511 35,627,164 13.4% 1,275,743 50 811,965 35 3,447,782 $22.75 2009 6,253 265,102,598 34,223,828 36,099,845 13.6% 1,133,642 126 6,631,960 51 3,554,300 $23.64 2008 6,127 258,470,638 28,938,103 30,601,527 11.8% 3,179,871 184 7,258,064 113 9,249,716 $23.87 2007 5,947 251,421,031 25,309,954 26,731,791 10.6% 7,265,138 166 4,849,966 176 10,394,993 $22.35 2006 5,787 247,055,787 27,868,129 29,631,685 12.0% 8,364,797 135 4,047,001 157 6,891,291 $19.69 2005 5,658 243,372,393 31,816,524 34,313,088 14.1% 6,730,166 167 4,981,603 121 4,739,296 $18.02 2004 5,494 238,523,426 33,106,357 36,194,287 15.2% 2,316,761 129 1,900,316 158 6,108,908 $17.84










Historical Rental RatesBased on Full-Service Equivalent Rental Rates


Vacancy by Available Space Type Vacancy by ClassPercent of All Vacant Space in Direct vs. Sublet Percent of All Vacant Space by Class


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

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

Houston United States Houston United States

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00


A B C Total Market

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

2012 3q 2013 3q 2014 3q


94%

6%

Direct Sublet

96%

4%

Direct Sublet

37%51%

12%


7.49

1.71

0.90

0.00 0.00 0.000.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2014 4q 2015 2q 2015 4q

16%

49% 35%


Leasing Activity






Leasing Activity


* Renewal

Building Submarket SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company

1 One Greenspoint Place* Greenspoint/N Belt West 224,833 1st American Bureau of Shipping James Arket & Company Colvill O�ce Properties

2 Westway Plaza FM 1960/Hwy 249 150,000 1st GE Oil & Gas CBRE Transwestern

3 One City Centre* CBD 127,684 1st Energy XXI Services Wilson Wasa� Group, LLC Transwestern

4 One Allen Center CBD 111,566 2nd Memorial Production Partners LP JLL Cassidy Turley

5 2550 N Loop Fwy W North Loop West 110,181 3rd N/A N/A Moody Rambin

6 One Allen Center CBD 109,373 2nd Motiva Enterprises N/A Savills Studley

7 Energy Tower IV Katy Freeway West 98,660 3rd N/A N/A Mac Haik Realty LLC

8 Fulbright Tower* CBD 96,769 2nd Key Energy Services NAI Houston N/A

9 8686 New Trails Dr Woodlands 95,640 3rd N/A N/A Cushman & Wake�eld, Inc.

10 Sugar Creek on the Lake E Fort Bend Co/Sugar Land 85,749 3rd N/A N/A PM Realty Group

11 Granite Briarpark Green Westchase 77,625 3rd JGC America, Inc. JLL Granite Properties

12 Wells Fargo Plaza CBD 74,975 3rd Gardere Wynne Sewell LLP N/A CBRE

13 Greens Crossing I Greenspoint/N Belt West 68,985 2nd GSA DTZ Cassidy Turley

14 Southwest Corporate Center Southwest Beltway 8 65,000 1st Texas Children’s Hospital N/A CBRE

15 1000 Main CBD 64,978 2nd N/A Colliers International PM Realty Group

16 Loop Central III Bellaire 64,677 2nd UPI N/A Transwestern

17 460 Wildwood Forest Dr Woodlands 63,259 3rd Devon Energy N/A Moody Rambin

18 One Eldridge Place Katy Freeway West 61,455 1st IHI N/A JLL

19 5444 Westheimer Rd Galleria/Uptown 58,061 3rd N/A N/A CBRE

20 10255 Richmond Ave* Westchase 55,470 2nd Blinds.com United Equities, Inc. CBRE

21 Pinnacle Westchase Westchase 53,245 3rd Phillips 66 Newmark Grubb Knight Frank Savills Studley

22 Two Hughes Landing Woodlands 51,152 2nd N/A N/A Colliers International

23 Phoenix Tower Greenway Plaza 49,018 1st HOK Architects N/A Cassidy Turley

24 Det Norske Veritas- Phase 2 Katy Freeway West 47,250 3rd Det Norske Veritas N/A Chambers Street Properties

25 Galleria Tower II Galleria/Uptown 44,644 1st Hoover Slovacek, LLP N/A JLL

26 One City Centre CBD 43,532 1st Energy XXI Services N/A N/A

27 Aerospace Plaza* NASA/Clear Lake 40,000 2nd Science Applications International Corp JLL CBRE

28 Granite Briarpark Green Westchase 38,026 3rd Friede & Goldman Ltd Poynter Commercial Properties Corp. Granite Properties

29 20 Greenway Plz Greenway Plaza 38,006 1st RealEC Technologies DTZ CBRE

30 Pearland Medical Plaza 2 South 35,000 3rd Memorial Hermann Healthcare System N/A N/A

31 Energy Crossing I Katy Freeway West 35,000 3rd Univeristy of Texas MD Anderson Cancer Center N/A Lincoln Property Company

32 1300 Bay Area Boulevard - Building A* NASA/Clear Lake 34,906 3rd United Way Service Center of the Bay Area Avison Young Boxer Property

33 5959 Corporate Dr Southwest Beltway 8 33,173 2nd Cyracom N/A CBRE

34 The Reserve at Greens Crossing II* Greenspoint/N Belt West 32,608 1st HAPAG-LLOYD (AMERICA) INC. Cushman & Wake�eld, Inc. Stream Realty Partners, L.P.

35 2500 Wilcrest Dr* Westchase 32,569 1st NEXT Financial Group, Inc. Stream Realty Partners, L.P. InSite Commercial Real Estate

36 12000 Aerospace Ave* NASA/Clear Lake 31,236 2nd Inspectorate America Corporation Colliers International Valuation an Rosemont Realty, LLC

37 Greenspoint Park III* Greenspoint/N Belt West 30,510 1st China Shipping N/A Transwestern

38 Bank of America Center CBD 30,124 2nd Arnold & Porter N/A Cushman & Wake�eld, Inc.

39 West Memorial Place Katy Freeway West 28,655 3rd Venari Resources JLL Skanska Commercial Development

40 Broad�eld at Park Ten Katy Freeway West 28,638 2nd William Jacob Management O�ce Space Advisors LLC Stream Realty Partners, L.P.

Select Top O�ce Leases Based on Leased Square Footage For Deals Signed in 2014






Sales Activity

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

Source: CoStar COMPS®

Sales Volume & Price Sales Analysis by Building SizeBased on Office Building Sales of 15,000 SF and Larger Based on Office Building Sales From July 2013 - June 2014

Bldg Size # RBA $ Volume Price/SF Cap Rate

< 50,000 SF 35 437,454 $70,316,629 160.74$ 7.75%

50K-249K SF

23 3,021,651 $374,644,358 123.99$ 7.05%

250K-499K SF

6 2,199,698 $496,650,000 225.78$ 7.81%

>500K SF 3 3,261,606 $765,149,050 234.59$ 5.75%


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


$20

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2011 1q 2012 1q 2013 1q 2014 1q

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2011 3q 2012 3q 2013 3q

Cap R

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2011 1q 2012 1q 2013 1q 2014 1q

Cap R

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Houston US







Sales Activity

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2014 3q 17 78,381 2,500 3.2% 0 0 0 0 0 $0.00

2014 2q 17 78,381 2,500 3.2% 1,000 0 0 0 0 $0.00

2014 1q 17 78,381 3,500 4.5% (3,500) 0 0 0 0 $0.00

2013 4q 17 78,381 0 0.0% 0 0 0 0 0 $0.00

2013 3q 17 78,381 0 0.0% 0 0 0 0 0 $0.00

2013 2q 17 78,381 0 0.0% 3,000 0 0 0 0 $0.00

2013 1q 17 78,381 3,000 3.8% 0 0 0 0 0 $0.00

2012 4q 17 78,381 3,000 3.8% 0 0 0 0 0 $0.00

2012 3q 17 78,381 3,000 3.8% 0 0 0 0 0 $0.00

2012 2q 17 78,381 3,000 3.8% 0 0 0 0 0 $0.00

2012 1q 17 78,381 3,000 3.8% 0 0 0 0 0 $0.00

2011 4q 17 78,381 3,000 3.8% 5,300 0 0 0 0 $0.00

2011 3q 17 78,381 8,300 10.6% (5,300) 0 0 0 0 $0.00

2011 2q 17 78,381 3,000 3.8% (3,000) 0 0 0 0 $0.00

2011 1q 17 78,381 0 0.0% 0 0 0 0 0 $0.00

2010 4q 17 78,381 0 0.0% 0 0 0 0 0 $0.00



(0.006)

(0.004)

(0.002)

0.000

0.002

0.004

0.006

2011 1q 2011 2q 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

Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Perce

nt V

aca

nt


$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Dollars

/SF/Y

ear

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Millions

SF

Direct SF Sublet SF







B e l l a i r e M a r k e t






2014 3q 81 5,017,727 334,546 6.7% (6,992) 0 0 0 0 $24.11

2014 2q 81 5,017,727 327,554 6.5% 68,387 1 4,960 0 0 $24.11

2014 1q 80 5,012,767 390,981 7.8% 22,093 0 0 1 4,960 $23.98

2013 4q 80 5,012,767 413,074 8.2% 59,200 0 0 1 4,960 $22.87

2013 3q 80 5,012,767 472,274 9.4% (1,334) 0 0 1 4,960 $23.04

2013 2q 80 5,012,767 470,940 9.4% 3,053 0 0 0 0 $23.22

2013 1q 80 5,012,767 473,993 9.5% 6,219 0 0 0 0 $23.27

2012 4q 80 5,012,767 480,212 9.6% (34,342) 0 0 0 0 $22.52

2012 3q 80 5,012,767 445,870 8.9% 15,673 0 0 0 0 $22.69

2012 2q 80 5,012,767 461,543 9.2% 27,695 0 0 0 0 $22.24

2012 1q 80 5,012,767 489,238 9.8% 43,308 0 0 0 0 $21.99

2011 4q 80 5,012,767 532,546 10.6% (44,843) 0 0 0 0 $20.93

2011 3q 80 5,012,767 487,703 9.7% (15,265) 0 0 0 0 $20.48

2011 2q 80 5,012,767 472,438 9.4% (6,297) 0 0 0 0 $20.49

2011 1q 80 5,012,767 466,141 9.3% (17,840) 0 0 0 0 $20.62

2010 4q 80 5,012,767 448,301 8.9% (59,462) 0 0 0 0 $20.61



(0.060)

(0.040)

(0.020)

0.000

0.020

0.040

0.060

0.080


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Perce

nt V

aca

nt


$22.20

$22.40

$22.60

$22.80

$23.00

$23.20

$23.40

$23.60

$23.80

$24.00

$24.20

$24.40

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Dollars

/SF/Y

ear

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

0.50

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Millions

SF

Direct SF Sublet SF







D o w n t o w n M a r k e t






2014 3q 637 58,164,406 5,915,446 10.2% 105,848 0 0 3 1,631,830 $36.68

2014 2q 637 58,164,406 6,021,294 10.4% 347,101 1 80,000 3 1,631,830 $36.57

2014 1q 637 58,204,400 6,408,389 11.0% (29,502) 0 0 4 1,711,830 $34.36

2013 4q 638 58,614,400 6,788,887 11.6% (273,479) 0 0 1 80,000 $32.38

2013 3q 638 58,614,400 6,515,408 11.1% 143,250 0 0 1 80,000 $31.71

2013 2q 638 58,614,400 6,658,658 11.4% (112,483) 0 0 1 80,000 $32.13

2013 1q 638 58,614,400 6,546,175 11.2% (63,377) 0 0 1 80,000 $31.94

2012 4q 639 58,717,045 6,585,443 11.2% 146,799 0 0 0 0 $32.12

2012 3q 639 58,717,045 6,732,242 11.5% 152,659 0 0 0 0 $31.57

2012 2q 639 58,717,045 6,884,901 11.7% (6,810) 0 0 0 0 $31.65

2012 1q 639 58,717,045 6,878,091 11.7% 207,205 0 0 0 0 $31.11

2011 4q 639 58,717,045 7,085,296 12.1% 251,497 0 0 0 0 $30.19

2011 3q 639 58,717,045 7,336,793 12.5% 386,146 1 844,763 0 0 $29.30

2011 2q 639 57,894,282 6,900,176 11.9% 113,254 0 0 1 844,763 $29.05

2011 1q 639 57,894,282 7,013,430 12.1% 380,420 2 980,574 1 844,763 $28.57

2010 4q 637 56,913,708 6,413,276 11.3% 78,882 0 0 3 1,825,337 $29.09



(0.400)

(0.200)

0.000

0.200

0.400

0.600

0.800

1.000

1.200


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Perce

nt V

aca

nt


$29.00

$30.00

$31.00

$32.00

$33.00

$34.00

$35.00

$36.00

$37.00

$38.00

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Dollars

/SF/Y

ear

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Millions

SF

Direct SF Sublet SF







E F o r t B e n d C o / S u g a r L a n d M a r k e t






2014 3q 347 9,345,511 1,211,422 13.0% 14,371 5 40,660 3 67,800 $24.34

2014 2q 342 9,304,851 1,185,133 12.7% 211,769 1 160,000 8 108,460 $24.10

2014 1q 341 9,144,851 1,236,902 13.5% 19,931 3 26,533 7 257,660 $23.90

2013 4q 338 9,118,318 1,230,300 13.5% 207,439 1 18,500 10 284,193 $24.01

2013 3q 337 9,099,818 1,419,239 15.6% 73,244 0 0 9 221,693 $24.41

2013 2q 337 9,099,818 1,492,483 16.4% (25,652) 2 9,840 9 221,693 $24.13

2013 1q 335 9,089,978 1,456,991 16.0% 65,575 0 0 8 205,000 $24.35

2012 4q 335 9,089,978 1,522,566 16.7% 56,680 1 6,156 2 9,840 $24.24

2012 3q 334 9,083,822 1,573,090 17.3% (6,021) 1 3,553 1 6,156 $24.43

2012 2q 333 9,080,269 1,563,516 17.2% 58,712 1 10,000 1 3,553 $24.38

2012 1q 332 9,070,269 1,612,228 17.8% (23,995) 1 9,928 2 13,553 $23.49

2011 4q 331 9,060,341 1,578,305 17.4% 138,570 0 0 3 23,481 $23.60

2011 3q 331 9,060,341 1,716,875 18.9% (9,546) 0 0 2 19,928 $23.45

2011 2q 331 9,060,341 1,707,329 18.8% 24,360 0 0 1 9,928 $24.41

2011 1q 331 9,060,341 1,731,689 19.1% 4,963 0 0 0 0 $24.52

2010 4q 331 9,060,341 1,736,652 19.2% (25,269) 0 0 0 0 $24.63



(0.050)

0.000

0.050

0.100

0.150

0.200

0.250


Millions

SF

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Perce

nt V

aca

nt


$23.60

$23.70

$23.80

$23.90

$24.00

$24.10

$24.20

$24.30

$24.40

$24.50

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Dollars

/SF/Y

ear

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Millions

SF

Direct SF Sublet SF







F M 1 9 6 0 M a r k e t






2014 3q 689 15,185,254 2,111,180 13.9% 40,733 1 31,320 6 803,250 $19.66

2014 2q 688 15,153,934 2,120,593 14.0% 96,699 2 61,500 4 807,170 $19.42

2014 1q 686 15,092,434 2,155,792 14.3% 67,019 0 0 5 556,670 $18.72

2013 4q 686 15,092,434 2,222,811 14.7% 159,417 0 0 5 556,670 $19.05

2013 3q 686 15,092,434 2,382,228 15.8% 486,189 0 0 3 493,320 $18.66

2013 2q 686 15,092,434 2,868,417 19.0% 31,830 1 3,566 1 31,320 $18.27

2013 1q 685 15,088,868 2,896,681 19.2% 73,211 1 4,075 1 3,566 $17.96

2012 4q 684 15,084,793 2,965,817 19.7% 109,842 0 0 2 7,641 $18.85

2012 3q 684 15,084,793 3,075,659 20.4% (131,534) 0 0 2 7,641 $18.71

2012 2q 684 15,084,793 2,944,125 19.5% 153,630 1 42,478 1 4,075 $18.11

2012 1q 683 15,042,315 3,055,277 20.3% 238,414 2 73,203 1 42,478 $18.43

2011 4q 681 14,969,112 3,220,488 21.5% 80,640 0 0 3 115,681 $18.83

2011 3q 681 14,969,112 3,301,128 22.1% 60,302 3 159,837 3 115,681 $18.87

2011 2q 679 15,228,762 3,621,080 23.8% (317,187) 1 35,868 5 233,040 $18.33

2011 1q 678 15,192,894 3,268,025 21.5% 52,046 1 9,599 5 252,808 $19.51

2010 4q 677 15,183,295 3,310,472 21.8% 46,401 1 2,337 5 205,304 $19.63



(0.400)

(0.300)

(0.200)

(0.100)

0.000

0.100

0.200

0.300

0.400

0.500

0.600


Millions

SF

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Perce

nt V

aca

nt


$17.00

$17.50

$18.00

$18.50

$19.00

$19.50

$20.00

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Dollars

/SF/Y

ear

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Millions

SF

Direct SF Sublet SF







G r e e n w a y P l a z a M a r k e t






2014 3q 271 12,351,599 1,086,872 8.8% (31,157) 0 0 3 662,057 $30.68

2014 2q 271 12,351,599 1,055,715 8.5% 85,261 0 0 3 662,057 $30.61

2014 1q 271 12,351,599 1,140,976 9.2% 36,572 0 0 3 662,057 $29.24

2013 4q 276 12,431,587 1,257,536 10.1% 29,848 0 0 1 248,275 $27.72

2013 3q 276 12,431,587 1,287,384 10.4% 10,421 0 0 0 0 $26.86

2013 2q 276 12,431,587 1,297,805 10.4% (9,707) 0 0 0 0 $26.86

2013 1q 276 12,431,587 1,288,098 10.4% (85,400) 0 0 0 0 $26.04

2012 4q 276 12,431,587 1,202,698 9.7% (50,586) 0 0 0 0 $25.56

2012 3q 276 12,431,587 1,152,112 9.3% 37,000 0 0 0 0 $25.20

2012 2q 276 12,431,587 1,189,112 9.6% 127,065 0 0 0 0 $25.20

2012 1q 276 12,431,587 1,316,177 10.6% 51,349 1 34,000 0 0 $24.83

2011 4q 275 12,397,587 1,333,526 10.8% 165,862 0 0 1 34,000 $24.46

2011 3q 275 12,397,587 1,499,388 12.1% 126,076 1 28,058 1 34,000 $24.55

2011 2q 274 12,369,529 1,597,406 12.9% 14,099 0 0 2 62,058 $24.52

2011 1q 275 12,371,938 1,613,914 13.0% (86,608) 1 17,000 2 62,058 $24.77

2010 4q 274 12,354,938 1,510,306 12.2% 95,017 0 0 3 79,058 $24.43



(0.100)

(0.050)

0.000

0.050

0.100

0.150

0.200


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Perce

nt V

aca

nt


$23.00

$24.00

$25.00

$26.00

$27.00

$28.00

$29.00

$30.00

$31.00

$32.00

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Dollars

/SF/Y

ear

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Millions

SF

Direct SF Sublet SF







G u l f F r e e w a y / P a s a d e n a M a r k e t






2014 3q 522 6,777,116 726,720 10.7% (393) 0 0 1 78,000 $19.89

2014 2q 522 6,777,116 726,327 10.7% 17,550 0 0 0 0 $18.71

2014 1q 522 6,777,116 743,877 11.0% (15,416) 0 0 0 0 $18.69

2013 4q 522 6,777,116 728,461 10.7% 138,189 1 65,000 0 0 $18.22

2013 3q 521 6,712,116 801,650 11.9% (38,050) 0 0 1 65,000 $18.38

2013 2q 521 6,712,116 763,600 11.4% 41,983 0 0 1 65,000 $18.34

2013 1q 521 6,712,116 805,583 12.0% (13,119) 0 0 1 65,000 $18.13

2012 4q 521 6,712,116 792,464 11.8% 19,200 3 15,590 1 65,000 $17.27

2012 3q 518 6,696,526 796,074 11.9% 8,299 0 0 3 15,590 $17.18

2012 2q 518 6,696,526 804,373 12.0% (6,602) 0 0 3 15,590 $17.32

2012 1q 518 6,696,526 797,771 11.9% (9,815) 0 0 3 15,590 $17.55

2011 4q 518 6,696,526 787,956 11.8% (27,949) 0 0 0 0 $17.45

2011 3q 518 6,696,526 760,007 11.3% (55,843) 0 0 0 0 $17.72

2011 2q 518 6,696,526 704,164 10.5% 21,934 0 0 0 0 $17.40

2011 1q 518 6,696,526 726,098 10.8% 34,394 2 25,000 0 0 $17.48

2010 4q 516 6,671,526 735,492 11.0% 33,078 1 2,049 2 25,000 $17.24



(0.100)

(0.050)

0.000

0.050

0.100

0.150


Millions

SF

9.5%

10.0%

10.5%

11.0%

11.5%

12.0%

12.5%

Perce

nt V

aca

nt


$17.00

$17.50

$18.00

$18.50

$19.00

$19.50

$20.00

$20.50

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Dollars

/SF/Y

ear

0.66

0.68

0.70

0.72

0.74

0.76

0.78

0.80

0.82

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Millions

SF

Direct SF Sublet SF







I - 1 0 E a s t M a r k e t






2014 3q 107 1,380,568 217,586 15.8% (4,003) 0 0 0 0 $16.34

2014 2q 107 1,380,568 213,583 15.5% 13,284 0 0 0 0 $16.04

2014 1q 107 1,380,568 226,867 16.4% (65,997) 0 0 0 0 $16.33

2013 4q 107 1,380,568 160,870 11.7% 0 0 0 0 0 $17.31

2013 3q 107 1,380,568 160,870 11.7% (227) 0 0 0 0 $16.19

2013 2q 107 1,380,568 160,643 11.6% 13,025 0 0 0 0 $16.70

2013 1q 107 1,380,568 173,668 12.6% (5,165) 0 0 0 0 $16.88

2012 4q 107 1,380,568 168,503 12.2% 6,401 0 0 0 0 $16.59

2012 3q 107 1,380,568 174,904 12.7% (12,472) 0 0 0 0 $16.70

2012 2q 107 1,380,568 162,432 11.8% 4,593 0 0 0 0 $16.34

2012 1q 107 1,380,568 167,025 12.1% 9,522 0 0 0 0 $16.08

2011 4q 107 1,380,568 176,547 12.8% (12,161) 0 0 0 0 $16.01

2011 3q 107 1,380,568 164,386 11.9% 4,133 0 0 0 0 $15.77

2011 2q 107 1,380,568 168,519 12.2% (2,090) 0 0 0 0 $15.52

2011 1q 107 1,380,568 166,429 12.1% (1,805) 0 0 0 0 $15.45

2010 4q 107 1,380,568 164,624 11.9% (3,372) 0 0 0 0 $14.07



(0.070)

(0.060)

(0.050)

(0.040)

(0.030)

(0.020)

(0.010)

0.000

0.010

0.020


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

Perce

nt V

aca

nt


$15.40

$15.60

$15.80

$16.00

$16.20

$16.40

$16.60

$16.80

$17.00

$17.20

$17.40

$17.60

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Dollars

/SF/Y

ear

0.00

0.05

0.10

0.15

0.20

0.25

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Millions

SF

Direct SF Sublet SF







K a t y F r e e w a y M a r k e t






2014 3q 641 35,857,267 2,846,956 7.9% (129,544) 3 549,493 24 5,833,411 $28.77

2014 2q 638 35,307,774 2,167,919 6.1% 515,295 3 637,109 24 5,722,057 $28.49

2014 1q 635 34,670,665 2,046,105 5.9% 1,258,938 14 1,398,399 24 5,330,304 $27.80

2013 4q 621 33,272,266 1,906,644 5.7% 839,731 4 460,695 30 5,149,183 $27.07

2013 3q 617 32,811,571 2,285,680 7.0% 813,854 9 935,389 28 4,215,078 $27.20

2013 2q 608 31,876,182 2,164,145 6.8% 151,469 2 5,356 31 4,168,081 $24.53

2013 1q 606 31,870,826 2,310,258 7.2% 230,887 3 212,091 28 3,675,643 $24.61

2012 4q 603 31,658,735 2,329,054 7.4% 165,430 2 8,098 22 3,844,245 $25.12

2012 3q 604 32,062,840 2,898,589 9.0% 490,264 3 452,924 18 2,871,064 $24.58

2012 2q 601 31,609,916 2,935,929 9.3% 309,433 0 0 12 1,765,375 $23.58

2012 1q 601 31,609,916 3,245,362 10.3% 216,455 1 4,328 9 1,054,738 $23.61

2011 4q 600 31,605,588 3,457,489 10.9% 308,285 3 10,938 4 457,252 $23.36

2011 3q 597 31,594,650 3,754,836 11.9% 93,095 1 8,669 6 466,990 $23.43

2011 2q 596 31,585,981 3,839,262 12.2% 97,577 0 0 5 23,935 $23.01

2011 1q 596 31,585,981 3,936,839 12.5% 110,837 4 33,323 4 19,607 $22.63

2010 4q 592 31,552,658 4,014,353 12.7% 405,349 1 220,809 5 41,992 $22.90



(0.400)

(0.200)

0.000

0.200

0.400

0.600

0.800

1.000

1.200

1.400

1.600


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Perce

nt V

aca

nt


$22.00

$23.00

$24.00

$25.00

$26.00

$27.00

$28.00

$29.00

$30.00

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Dollars

/SF/Y

ear

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Millions

SF

Direct SF Sublet SF







K i n g w o o d / H u m b l e M a r k e t






2014 3q 163 2,469,814 195,131 7.9% 10,617 0 0 0 0 $21.73

2014 2q 163 2,469,814 205,748 8.3% 8,834 0 0 0 0 $22.09

2014 1q 163 2,469,814 214,582 8.7% (13,359) 0 0 0 0 $21.38

2013 4q 163 2,469,814 201,223 8.1% (4,221) 0 0 0 0 $21.30

2013 3q 163 2,469,814 197,002 8.0% (16,121) 0 0 0 0 $21.39

2013 2q 163 2,469,814 180,881 7.3% (10,174) 0 0 0 0 $21.64

2013 1q 163 2,469,814 170,707 6.9% 35,762 0 0 0 0 $21.55

2012 4q 163 2,469,814 206,469 8.4% 17,851 1 45,000 0 0 $21.78

2012 3q 162 2,424,814 179,320 7.4% 36,867 0 0 1 45,000 $21.71

2012 2q 162 2,424,814 216,187 8.9% (7,738) 0 0 1 45,000 $21.56

2012 1q 162 2,424,814 208,449 8.6% 20,916 0 0 1 45,000 $21.21

2011 4q 162 2,424,814 229,365 9.5% (11,051) 0 0 0 0 $20.92

2011 3q 162 2,424,814 218,314 9.0% 49,933 0 0 0 0 $21.20

2011 2q 162 2,424,814 268,247 11.1% 26,907 0 0 0 0 $19.80

2011 1q 162 2,424,814 295,154 12.2% 15,222 0 0 0 0 $19.97

2010 4q 162 2,424,814 310,376 12.8% 2,399 0 0 0 0 $20.17



(0.020)

(0.010)

0.000

0.010

0.020

0.030

0.040

0.050

0.060


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Perce

nt V

aca

nt


$20.80

$21.00

$21.20

$21.40

$21.60

$21.80

$22.00

$22.20

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Dollars

/SF/Y

ear

0.00

0.05

0.10

0.15

0.20

0.25

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Millions

SF

Direct SF Sublet SF







N A S A / C l e a r L a k e M a r k e t






2014 3q 465 9,859,402 1,456,321 14.8% 108,677 1 55,000 0 0 $19.57

2014 2q 464 9,804,402 1,509,998 15.4% 12,033 0 0 1 55,000 $19.33

2014 1q 464 9,804,402 1,522,031 15.5% 100,000 2 123,035 1 55,000 $19.20

2013 4q 462 9,681,367 1,498,996 15.5% 119,631 0 0 3 178,035 $19.10

2013 3q 462 9,681,367 1,618,627 16.7% (37,132) 1 4,760 2 123,035 $19.27

2013 2q 461 9,676,607 1,576,735 16.3% (26,722) 0 0 3 127,795 $19.24

2013 1q 461 9,676,607 1,550,013 16.0% (286,722) 0 0 3 127,795 $18.97

2012 4q 461 9,676,607 1,263,291 13.1% 67,636 1 4,495 2 124,760 $19.72

2012 3q 460 9,672,112 1,326,432 13.7% (83,476) 1 14,701 2 124,495 $19.80

2012 2q 459 9,657,411 1,228,255 12.7% (7,069) 0 0 3 139,196 $19.80

2012 1q 459 9,657,411 1,221,186 12.6% (138,976) 0 0 3 139,196 $20.16

2011 4q 459 9,657,411 1,082,210 11.2% 136,353 1 102,000 1 14,701 $20.45

2011 3q 458 9,555,411 1,116,563 11.7% (100,099) 0 0 1 102,000 $20.42

2011 2q 458 9,555,411 1,016,464 10.6% (254,492) 0 0 1 102,000 $20.41

2011 1q 458 9,555,411 761,972 8.0% 82,446 3 18,715 1 102,000 $20.25

2010 4q 455 9,536,696 825,703 8.7% 49,518 0 0 3 18,715 $19.77



(0.350)

(0.300)

(0.250)

(0.200)

(0.150)

(0.100)

(0.050)

0.000

0.050

0.100

0.150

0.200


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

Perce

nt V

aca

nt


$18.60

$18.70

$18.80

$18.90

$19.00

$19.10

$19.20

$19.30

$19.40

$19.50

$19.60

$19.70

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Dollars

/SF/Y

ear

1.35

1.40

1.45

1.50

1.55

1.60

1.65

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Millions

SF

Direct SF Sublet SF







N o r t h B e l t M a r k e t






2014 3q 181 14,037,102 2,385,231 17.0% (162,690) 0 0 0 0 $22.61

2014 2q 181 14,037,102 2,222,541 15.8% 122,198 0 0 0 0 $23.76

2014 1q 181 14,037,102 2,344,739 16.7% 25,829 0 0 0 0 $24.42

2013 4q 181 14,037,102 2,370,568 16.9% 95,435 0 0 0 0 $22.14

2013 3q 181 14,037,102 2,466,003 17.6% (297,715) 0 0 0 0 $22.36

2013 2q 181 14,037,102 2,168,288 15.4% (120,478) 0 0 0 0 $21.52

2013 1q 181 14,037,102 2,047,810 14.6% (11,183) 1 100,000 0 0 $18.54

2012 4q 180 13,937,102 1,936,627 13.9% 74,914 0 0 1 100,000 $18.27

2012 3q 180 13,937,102 2,011,541 14.4% 91,530 0 0 1 100,000 $17.72

2012 2q 180 13,937,102 2,103,071 15.1% 12,232 0 0 1 100,000 $16.84

2012 1q 180 13,937,102 2,115,303 15.2% 10,851 0 0 1 100,000 $16.86

2011 4q 181 13,947,091 2,136,143 15.3% (82,739) 1 17,000 1 100,000 $16.36

2011 3q 180 13,930,091 2,036,404 14.6% (70,603) 0 0 2 117,000 $16.04

2011 2q 180 13,930,091 1,965,801 14.1% 47,352 0 0 2 117,000 $16.20

2011 1q 180 13,930,091 2,013,153 14.5% 80,593 1 98,539 2 117,000 $15.93

2010 4q 179 13,831,552 1,995,207 14.4% 54,536 0 0 2 198,539 $15.85



(0.350)

(0.300)

(0.250)

(0.200)

(0.150)

(0.100)

(0.050)

0.000

0.050

0.100

0.150


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Perce

nt V

aca

nt


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Dollars

/SF/Y

ear

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Millions

SF

Direct SF Sublet SF







N o r t h e a s t N e a r M a r k e t






2014 3q 114 1,465,272 133,047 9.1% 32,259 0 0 0 0 $17.96

2014 2q 114 1,465,272 165,306 11.3% (1,538) 0 0 0 0 $17.95

2014 1q 114 1,465,272 163,768 11.2% 9,004 0 0 0 0 $18.02

2013 4q 114 1,465,272 172,772 11.8% 5,299 0 0 0 0 $18.65

2013 3q 114 1,465,272 178,071 12.2% (19,956) 1 6,203 0 0 $17.47

2013 2q 113 1,459,069 151,912 10.4% (11,603) 0 0 1 6,203 $17.59

2013 1q 113 1,459,069 140,309 9.6% 2,761 0 0 1 6,203 $17.98

2012 4q 113 1,459,069 143,070 9.8% 12,552 0 0 0 0 $18.07

2012 3q 113 1,459,069 155,622 10.7% 32,448 1 30,000 0 0 $17.76

2012 2q 112 1,429,069 158,070 11.1% 4,092 0 0 1 30,000 $17.75

2012 1q 112 1,429,069 162,162 11.3% (3,617) 0 0 1 30,000 $18.24

2011 4q 112 1,429,069 158,545 11.1% (3,839) 0 0 1 30,000 $18.16

2011 3q 112 1,429,069 154,706 10.8% (1,017) 0 0 0 0 $18.30

2011 2q 112 1,429,069 153,689 10.8% 1,891 0 0 0 0 $17.63

2011 1q 112 1,429,069 155,580 10.9% (585) 0 0 0 0 $17.78

2010 4q 112 1,429,069 154,995 10.8% 4,147 0 0 0 0 $18.08



(0.030)

(0.020)

(0.010)

0.000

0.010

0.020

0.030

0.040


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Perce

nt V

aca

nt


$16.80

$17.00

$17.20

$17.40

$17.60

$17.80

$18.00

$18.20

$18.40

$18.60

$18.80

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Dollars

/SF/Y

ear

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

0.18

0.20

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Millions

SF

Direct SF Sublet SF







N o r t h w e s t M a r k e t






2014 3q 501 15,900,571 2,082,206 13.1% 48,120 1 3,106 5 1,357,222 $21.41

2014 2q 500 15,897,465 2,127,220 13.4% 15,863 1 10,352 5 1,251,695 $21.85

2014 1q 499 15,887,113 2,132,731 13.4% 87,052 0 0 5 622,047 $21.28

2013 4q 501 15,910,113 2,242,783 14.1% 150,966 1 10,000 3 284,842 $20.06

2013 3q 500 15,900,113 2,383,749 15.0% 168,429 1 159,056 4 294,842 $20.11

2013 2q 499 15,741,057 2,393,122 15.2% (50,821) 0 0 4 182,514 $19.11

2013 1q 499 15,741,057 2,342,301 14.9% (139,824) 0 0 1 159,056 $19.01

2012 4q 499 15,741,057 2,202,477 14.0% 89,551 0 0 1 159,056 $18.56

2012 3q 499 15,741,057 2,292,028 14.6% 192,224 0 0 1 159,056 $18.42

2012 2q 499 15,741,057 2,484,252 15.8% 93,780 0 0 1 159,056 $18.76

2012 1q 499 15,741,057 2,578,032 16.4% 159,495 0 0 0 0 $18.66

2011 4q 499 15,741,057 2,737,527 17.4% 113,417 0 0 0 0 $17.67

2011 3q 499 15,741,057 2,850,944 18.1% 117,738 1 2,776 0 0 $17.76

2011 2q 498 15,738,281 2,965,906 18.8% (119,728) 0 0 1 2,776 $18.11

2011 1q 498 15,738,281 2,846,178 18.1% 159,265 0 0 1 2,776 $19.01

2010 4q 498 15,738,281 3,005,443 19.1% (90,374) 0 0 1 2,776 $19.23



(0.200)

(0.150)

(0.100)

(0.050)

0.000

0.050

0.100

0.150

0.200

0.250


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Perce

nt V

aca

nt


$17.50

$18.00

$18.50

$19.00

$19.50

$20.00

$20.50

$21.00

$21.50

$22.00

$22.50

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Dollars

/SF/Y

ear

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Millions

SF

Direct SF Sublet SF







R i c h m o n d / F o u n t a i n v i e w M a r k e t






2014 3q 114 2,182,133 365,774 16.8% 19,740 0 0 0 0 $15.88

2014 2q 114 2,182,133 385,514 17.7% 12,864 0 0 0 0 $15.71

2014 1q 114 2,182,133 398,378 18.3% (519) 0 0 0 0 $15.56

2013 4q 114 2,182,133 397,859 18.2% (14,018) 0 0 0 0 $15.28

2013 3q 114 2,182,133 383,841 17.6% 33,952 0 0 0 0 $15.49

2013 2q 114 2,182,133 417,793 19.1% 12,191 0 0 0 0 $14.71

2013 1q 114 2,182,133 429,984 19.7% (44,487) 0 0 0 0 $14.54

2012 4q 114 2,182,133 385,497 17.7% (4,275) 0 0 0 0 $15.15

2012 3q 114 2,182,133 381,222 17.5% 11,813 0 0 0 0 $15.23

2012 2q 114 2,182,133 393,035 18.0% 253 0 0 0 0 $15.22

2012 1q 114 2,182,133 393,288 18.0% 10,360 0 0 0 0 $16.08

2011 4q 114 2,182,133 403,648 18.5% (19,544) 0 0 0 0 $15.22

2011 3q 114 2,182,133 384,104 17.6% 2,145 0 0 0 0 $15.38

2011 2q 114 2,182,133 386,249 17.7% (21,822) 0 0 0 0 $14.89

2011 1q 114 2,182,133 364,427 16.7% (10,158) 0 0 0 0 $15.06

2010 4q 114 2,182,133 354,269 16.2% (35,354) 0 0 0 0 $15.05



(0.050)

(0.040)

(0.030)

(0.020)

(0.010)

0.000

0.010

0.020

0.030

0.040


Millions

SF

15.0%

15.5%

16.0%

16.5%

17.0%

17.5%

18.0%

18.5%

19.0%

19.5%

20.0%

Perce

nt V

aca

nt


$13.50

$14.00

$14.50

$15.00

$15.50

$16.00

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Dollars

/SF/Y

ear

0.32

0.34

0.36

0.38

0.40

0.42

0.44

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Millions

SF

Direct SF Sublet SF







S a n F e l i p e / V o s s M a r k e t






2014 3q 49 5,370,204 554,606 10.3% (4,794) 0 0 0 0 $29.60

2014 2q 49 5,370,204 549,812 10.2% 129,125 0 0 0 0 $27.08

2014 1q 49 5,370,204 678,937 12.6% (58,878) 0 0 0 0 $27.21

2013 4q 49 5,370,204 620,059 11.5% (2,612) 0 0 0 0 $26.15

2013 3q 51 5,496,566 743,809 13.5% (27,498) 0 0 0 0 $24.97

2013 2q 51 5,496,566 716,311 13.0% (55,859) 0 0 0 0 $24.65

2013 1q 51 5,496,566 660,452 12.0% 642 0 0 0 0 $24.23

2012 4q 51 5,496,566 661,094 12.0% 60,169 0 0 0 0 $24.89

2012 3q 51 5,496,566 721,263 13.1% (70,645) 0 0 0 0 $24.32

2012 2q 51 5,496,566 650,618 11.8% (28,138) 0 0 0 0 $24.63

2012 1q 51 5,496,566 622,480 11.3% 70,488 0 0 0 0 $23.94

2011 4q 51 5,496,566 692,968 12.6% (82,315) 0 0 0 0 $23.90

2011 3q 51 5,496,566 610,653 11.1% (16,481) 0 0 0 0 $24.04

2011 2q 51 5,496,566 594,172 10.8% (33,894) 0 0 0 0 $23.62

2011 1q 51 5,496,566 560,278 10.2% 40,201 0 0 0 0 $23.05

2010 4q 51 5,496,566 600,479 10.9% 5,967 0 0 0 0 $23.09



(0.100)

(0.050)

0.000

0.050

0.100

0.150


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Perce

nt V

aca

nt


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Dollars

/SF/Y

ear

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Millions

SF

Direct SF Sublet SF







S a n J a c i n t o C o u n t y M a r k e t






2014 3q 2 34,761 7,500 21.6% 0 0 0 0 0 $0.00

2014 2q 2 34,761 7,500 21.6% 0 0 0 0 0 $0.00

2014 1q 2 34,761 7,500 21.6% 0 0 0 0 0 $0.00

2013 4q 2 34,761 7,500 21.6% 0 0 0 0 0 $0.00

2013 3q 2 34,761 7,500 21.6% 0 0 0 0 0 $0.00

2013 2q 2 34,761 7,500 21.6% (7,500) 0 0 0 0 $0.00

2013 1q 2 34,761 0 0.0% 0 0 0 0 0 $0.00

2012 4q 2 34,761 0 0.0% 0 0 0 0 0 $0.00

2012 3q 2 34,761 0 0.0% 0 0 0 0 0 $0.00

2012 2q 2 34,761 0 0.0% 0 0 0 0 0 $0.00

2012 1q 2 34,761 0 0.0% 0 0 0 0 0 $0.00

2011 4q 2 34,761 0 0.0% 0 0 0 0 0 $0.00

2011 3q 2 34,761 0 0.0% 0 0 0 0 0 $0.00

2011 2q 2 34,761 0 0.0% 0 0 0 0 0 $0.00

2011 1q 2 34,761 0 0.0% 0 0 0 0 0 $0.00

2010 4q 2 34,761 0 0.0% 0 0 0 0 0 $0.00



(0.008)

(0.007)

(0.006)

(0.005)

(0.004)

(0.003)

(0.002)

(0.001)

0.000


Millions

SF

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Perce

nt V

aca

nt


$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Dollars

/SF/Y

ear

0.00

0.00

0.00

0.00

0.00

0.01

0.01

0.01

0.01

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Millions

SF

Direct SF Sublet SF







S o u t h M a r k e t






2014 3q 208 2,665,894 346,423 13.0% (11,811) 0 0 2 107,700 $22.76

2014 2q 208 2,665,894 334,612 12.6% (1,353) 1 8,086 1 7,700 $24.11

2014 1q 207 2,657,808 325,173 12.2% (2,507) 0 0 2 15,786 $23.99

2013 4q 207 2,657,808 322,666 12.1% (18,154) 0 0 2 15,786 $22.23

2013 3q 207 2,657,808 304,512 11.5% 231,693 3 230,489 1 8,086 $21.88

2013 2q 204 2,427,319 305,716 12.6% 10,027 0 0 3 230,489 $20.52

2013 1q 204 2,427,319 315,743 13.0% 9,804 1 3,151 3 230,489 $19.65

2012 4q 203 2,424,168 322,396 13.3% (15,030) 0 0 4 233,640 $19.88

2012 3q 203 2,424,168 307,366 12.7% 62,199 4 66,887 3 179,384 $20.30

2012 2q 199 2,357,281 302,678 12.8% 14,491 0 0 6 240,038 $20.37

2012 1q 199 2,357,281 317,169 13.5% (20,680) 1 3,331 4 66,887 $19.23

2011 4q 198 2,353,950 293,158 12.5% 32,188 1 8,067 5 70,218 $19.77

2011 3q 197 2,345,883 317,279 13.5% (4,612) 0 0 3 55,977 $19.86

2011 2q 197 2,345,883 312,667 13.3% (19,308) 0 0 2 11,398 $20.06

2011 1q 197 2,345,883 293,359 12.5% (5,943) 1 11,987 1 8,067 $19.89

2010 4q 196 2,333,896 275,429 11.8% 86,760 0 0 1 11,987 $20.89



(0.050)

0.000

0.050

0.100

0.150

0.200

0.250


Millions

SF

10.0%

10.5%

11.0%

11.5%

12.0%

12.5%

13.0%

13.5%

14.0%

Perce

nt V

aca

nt


$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Dollars

/SF/Y

ear

0.27

0.28

0.29

0.30

0.31

0.32

0.33

0.34

0.35

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Millions

SF

Direct SF Sublet SF







S o u t h H w y 3 5 M a r k e t






2014 3q 129 724,610 36,332 5.0% (16,368) 0 0 0 0 $16.89

2014 2q 129 724,610 19,964 2.8% (1,282) 0 0 0 0 $15.56

2014 1q 129 724,610 18,682 2.6% 2,210 1 1,410 0 0 $15.61

2013 4q 128 723,200 19,482 2.7% 10,725 0 0 1 1,410 $15.54

2013 3q 128 723,200 30,207 4.2% (11,560) 0 0 1 1,410 $15.44

2013 2q 128 723,200 18,647 2.6% 9,496 0 0 1 1,410 $15.53

2013 1q 128 723,200 28,143 3.9% (4,396) 0 0 1 1,410 $15.66

2012 4q 128 723,200 23,747 3.3% 2,883 0 0 0 0 $14.85

2012 3q 128 723,200 26,630 3.7% 2,675 0 0 0 0 $13.64

2012 2q 128 723,200 29,305 4.1% 4,284 0 0 0 0 $13.87

2012 1q 128 723,200 33,589 4.6% (6,000) 0 0 0 0 $14.98

2011 4q 128 723,200 27,589 3.8% 4,546 0 0 0 0 $14.98

2011 3q 128 723,200 32,135 4.4% 4,250 0 0 0 0 $14.56

2011 2q 128 723,200 36,385 5.0% (2,432) 0 0 0 0 $14.57

2011 1q 128 723,200 33,953 4.7% 2,897 0 0 0 0 $15.07

2010 4q 128 723,200 36,850 5.1% 200 0 0 0 0 $15.16



(0.020)

(0.015)

(0.010)

(0.005)

0.000

0.005

0.010

0.015


Millions

SF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Perce

nt V

aca

nt


$14.50

$15.00

$15.50

$16.00

$16.50

$17.00

$17.50

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Dollars

/SF/Y

ear

0.00

0.01

0.01

0.02

0.02

0.03

0.03

0.04

0.04

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Millions

SF

Direct SF Sublet SF







S o u t h M a i n / M e d i c a l C e n t e r M a r k e t






2014 3q 218 11,848,219 901,095 7.6% 26,440 1 50,000 0 0 $24.67

2014 2q 217 11,798,219 877,535 7.4% 47,262 0 0 1 50,000 $24.85

2014 1q 217 11,798,219 924,797 7.8% 60,820 0 0 1 50,000 $24.79

2013 4q 217 11,798,219 985,617 8.4% 72,789 0 0 1 50,000 $24.41

2013 3q 217 11,798,219 1,058,406 9.0% (248,176) 0 0 1 50,000 $24.69

2013 2q 217 11,798,219 810,230 6.9% 20,232 0 0 1 50,000 $24.75

2013 1q 217 11,798,219 830,462 7.0% 316,099 0 0 1 50,000 $24.51

2012 4q 217 11,798,219 1,146,561 9.7% (27,609) 0 0 0 0 $24.82

2012 3q 217 11,798,219 1,118,952 9.5% 22,904 0 0 0 0 $24.75

2012 2q 217 11,798,219 1,141,856 9.7% 54,256 0 0 0 0 $24.52

2012 1q 217 11,798,219 1,196,112 10.1% 551,406 1 895,612 0 0 $25.30

2011 4q 216 10,902,607 851,906 7.8% (14,879) 0 0 1 895,612 $24.93

2011 3q 217 11,216,699 1,151,119 10.3% (363,718) 0 0 1 895,612 $24.74

2011 2q 217 11,216,699 787,401 7.0% 23,351 0 0 1 895,612 $24.94

2011 1q 217 11,216,699 810,752 7.2% 7,349 0 0 1 895,612 $23.66

2010 4q 217 11,216,699 818,101 7.3% 80,637 0 0 1 895,612 $23.65



(0.600)

(0.400)

(0.200)

0.000

0.200

0.400

0.600

0.800

1.000


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Perce

nt V

aca

nt


$24.10

$24.20

$24.30

$24.40

$24.50

$24.60

$24.70

$24.80

$24.90

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Dollars

/SF/Y

ear

0.00

0.20

0.40

0.60

0.80

1.00

1.20

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Millions

SF

Direct SF Sublet SF







S o u t h w e s t M a r k e t






2014 3q 313 13,240,317 2,549,986 19.3% (76,621) 0 0 0 0 $16.07

2014 2q 313 13,240,317 2,473,365 18.7% 231,030 0 0 0 0 $16.30

2014 1q 313 13,240,317 2,704,395 20.4% (174,799) 0 0 0 0 $16.34

2013 4q 313 13,240,317 2,529,596 19.1% (5,677) 0 0 0 0 $16.23

2013 3q 313 13,240,317 2,523,919 19.1% 175,521 0 0 0 0 $15.63

2013 2q 313 13,240,317 2,699,440 20.4% (31,147) 0 0 0 0 $15.53

2013 1q 313 13,240,317 2,668,293 20.2% (88,984) 0 0 0 0 $15.55

2012 4q 313 13,240,317 2,579,309 19.5% (114,249) 0 0 0 0 $15.87

2012 3q 313 13,240,317 2,465,060 18.6% (257,437) 0 0 0 0 $15.75

2012 2q 313 13,240,317 2,207,623 16.7% 41,925 0 0 0 0 $15.65

2012 1q 313 13,240,317 2,249,548 17.0% 82,689 1 4,415 0 0 $15.67

2011 4q 312 13,235,902 2,327,822 17.6% (70,554) 1 20,000 1 4,415 $15.72

2011 3q 311 13,215,902 2,237,268 16.9% (13,894) 0 0 2 24,415 $15.71

2011 2q 311 13,215,902 2,223,374 16.8% (49,946) 0 0 2 24,415 $15.74

2011 1q 311 13,215,902 2,173,428 16.4% (54,925) 0 0 0 0 $15.14

2010 4q 311 13,215,902 2,118,503 16.0% 11,753 0 0 0 0 $14.87



(0.300)

(0.200)

(0.100)

0.000

0.100

0.200

0.300


Millions

SF

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Perce

nt V

aca

nt


$15.00

$15.20

$15.40

$15.60

$15.80

$16.00

$16.20

$16.40

$16.60

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Dollars

/SF/Y

ear

2.35

2.40

2.45

2.50

2.55

2.60

2.65

2.70

2.75

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Millions

SF

Direct SF Sublet SF







W e s t L o o p M a r k e t






2014 3q 132 23,490,528 2,502,079 10.7% 227,783 1 83,073 2 699,826 $32.92

2014 2q 131 23,407,455 2,646,789 11.3% (89,667) 1 81,502 3 782,899 $32.43

2014 1q 130 23,325,953 2,475,620 10.6% 242,072 0 0 4 864,401 $32.03

2013 4q 130 23,325,953 2,717,692 11.7% 167,235 0 0 3 264,401 $31.45

2013 3q 130 23,325,953 2,884,927 12.4% 70,054 1 302,536 3 264,401 $30.84

2013 2q 129 23,023,417 2,652,445 11.5% 376,284 1 312,574 3 467,111 $31.15

2013 1q 128 22,710,843 2,716,155 12.0% (51,800) 0 0 4 779,685 $30.94

2012 4q 128 22,710,843 2,664,355 11.7% 2,508 0 0 4 779,685 $30.17

2012 3q 128 22,710,843 2,666,863 11.7% (54,528) 0 0 4 779,685 $29.97

2012 2q 128 22,710,843 2,612,335 11.5% 193,291 0 0 2 615,110 $29.37

2012 1q 128 22,710,843 2,805,626 12.4% (16,961) 0 0 2 615,110 $28.91

2011 4q 128 22,710,843 2,788,665 12.3% 172,206 0 0 1 312,574 $27.56

2011 3q 128 22,710,843 2,960,871 13.0% (68,053) 0 0 1 312,574 $26.98

2011 2q 128 22,710,843 2,892,818 12.7% 91,525 0 0 0 0 $25.83

2011 1q 128 22,710,843 2,984,343 13.1% 75,756 0 0 0 0 $25.39

2010 4q 128 22,710,843 3,060,099 13.5% (23,885) 0 0 0 0 $26.27



(0.200)

(0.100)

0.000

0.100

0.200

0.300

0.400


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Perce

nt V

aca

nt


$29.50

$30.00

$30.50

$31.00

$31.50

$32.00

$32.50

$33.00

$33.50

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Dollars

/SF/Y

ear

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Millions

SF

Direct SF Sublet SF







W e s t c h a s e M a r k e t






2014 3q 133 16,649,150 2,079,097 12.5% (167,823) 2 440,092 3 1,817,000 $31.08

2014 2q 131 16,209,058 1,471,182 9.1% 134,607 0 0 5 2,257,092 $30.82

2014 1q 131 16,209,058 1,605,789 9.9% 296,414 2 201,700 3 740,092 $30.45

2013 4q 129 16,007,358 1,700,503 10.6% (140,788) 1 302,551 4 834,800 $30.20

2013 3q 128 15,704,807 1,257,164 8.0% 26,511 0 0 4 837,351 $29.17

2013 2q 128 15,704,807 1,283,675 8.2% 215,677 0 0 4 837,351 $28.26

2013 1q 128 15,704,807 1,499,352 9.5% (71,492) 0 0 3 712,351 $28.53

2012 4q 128 15,704,807 1,427,860 9.1% 105,300 0 0 3 712,351 $28.69

2012 3q 128 15,704,807 1,533,160 9.8% 84,837 1 45,000 2 379,251 $27.85

2012 2q 127 15,659,807 1,572,997 10.0% 348,165 0 0 3 424,251 $25.31

2012 1q 127 15,659,807 1,921,162 12.3% 343 0 0 2 121,700 $23.14

2011 4q 127 15,659,807 1,921,505 12.3% 114,466 0 0 1 45,000 $21.73

2011 3q 127 15,659,807 2,035,971 13.0% 88,549 0 0 0 0 $22.27

2011 2q 127 15,659,807 2,124,520 13.6% (23,845) 0 0 0 0 $22.64

2011 1q 127 15,659,807 2,100,675 13.4% 249,246 0 0 0 0 $25.32

2010 4q 127 15,659,807 2,349,921 15.0% 101,252 0 0 0 0 $25.01



(0.200)

(0.100)

0.000

0.100

0.200

0.300

0.400

0.500


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Perce

nt V

aca

nt


$26.50

$27.00

$27.50

$28.00

$28.50

$29.00

$29.50

$30.00

$30.50

$31.00

$31.50

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Dollars

/SF/Y

ear

0.00

0.50

1.00

1.50

2.00

2.50

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Millions

SF

Direct SF Sublet SF




W o o d l a n d s M a r k e t






2014 3q 466 14,183,316 1,153,458 8.1% 439,165 11 396,439 15 4,552,137 $30.17

2014 2q 455 13,786,877 1,196,184 8.7% 34,771 10 438,787 24 4,929,876 $29.59

2014 1q 445 13,348,090 792,168 5.9% 846,563 11 743,742 32 5,123,583 $29.79

2013 4q 434 12,604,348 894,989 7.1% 194,634 9 142,620 36 5,742,860 $28.69

2013 3q 426 12,472,728 958,003 7.7% 281,610 6 571,970 43 5,879,254 $29.12

2013 2q 420 11,900,758 667,643 5.6% 276,529 4 300,089 37 6,063,423 $28.15

2013 1q 416 11,600,669 644,083 5.6% (7,092) 1 30,000 30 5,604,808 $25.85

2012 4q 415 11,570,669 606,991 5.2% 174,773 1 4,194 20 4,620,374 $26.81

2012 3q 414 11,566,475 777,570 6.7% 128,652 2 105,486 10 4,331,334 $25.36

2012 2q 412 11,460,989 800,736 7.0% 41,344 1 16,445 9 4,262,320 $25.14

2012 1q 411 11,444,544 825,635 7.2% 205,601 4 36,860 8 4,207,714 $25.64

2011 4q 407 11,407,684 994,376 8.7% 191,693 3 62,663 8 708,791 $23.49

2011 3q 404 11,345,021 1,123,406 9.9% 294,485 5 111,315 11 771,454 $23.30

2011 2q 399 11,233,706 1,306,576 11.6% 59,527 4 42,811 13 220,324 $23.91

2011 1q 395 11,190,895 1,323,292 11.8% 92,657 4 27,636 12 216,789 $23.84

2010 4q 391 11,163,259 1,388,313 12.4% 93,891 1 70,000 9 143,462 $24.10



(0.100)

0.000

0.100

0.200

0.300

0.400

0.500

0.600

0.700

0.800

0.900


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Perce

nt V

aca

nt


$23.00

$24.00

$25.00

$26.00

$27.00

$28.00

$29.00

$30.00

$31.00

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Dollars

/SF/Y

ear

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q

Millions

SF

Direct SF Sublet SF

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