http://www.colliers.com/markets/sugarland

Q4 2012 | SUBMARKET SNAPSHOT

Office

4Q11 4Q12

VACANCY 22.6% 21.7%

ABSORPTION 82,232 32,741

RENTAL RATE $23.68 $24.65

OFFICE MARKETThe Fort Bend Office Market posted 32,741 square feet of positive netabsorption during the fourth quarter, pushing the year-to-date netabsorption to 52,027 SF. Between quarters, the average vacancy ratedecreased from 22.2% to 21.7% and the average quoted rental ratedecreased in the fourth quarter from $24.90 to $24.65 per SF. Leasingactivity decreased significantly between quarters, dropping from124,470 square feet to 30,595 square feet. The construction pipelinehas been empty since the fourth quarter of 2009, and there are still nobuildings under construction.

MEDICAL OFFICE MARKETFort Bend's medical office average vacancy rate decreased betweenquarters by 120 basis points (bps) from 8.7% to 7.5% and the averagequoted rental rate decreased from $24.28 to $24.04 per SF. Leasingactivity decreased slightly between quarters and the submarket posted17,129 SF of positive net absorption in the fourth quarter. No buildingswere delivered during the fourth quarter and there are no medicaloffice buildings currently under construction.

INDUSTRIAL MARKETFort Bend's industrial market posted 77,289 SF of positive netabsorption in the fourth quarter, and the industrial average vacancy ratefell 50 basis points, from 8.0% to 7.5% between quarters. Year overyear however, the vacancy rate increased from 7.1% to 7.5%. Thequoted average rental rate for industrial space decreased from $5.86 to$5.38 per SF NNN between quarters. No new buildings were deliveredin the fourth quarter and there were no buildings under construction atthe close of the quarter.

RETAIL MARKETFort Bend's retail market posted 59,493 SF of positive net absorption inthe fourth quarter, pushing the year-end total to 70,787 SF. Theaverage retail vacancy rate for all product types stood at 5.8%, downfrom 6.4% the previous quarter. Fourth quarter leasing activityreached 29,735 SF and some new tenants in the market include JALBBQ, Crazy 8, Miracle Ear, and Dr. Cellphone. Currently, there are nobuildings under construction and no buildings were delivered during thefourth quarter.

SUBMARKET SNAPSHOTE. FORT BEND COMMERCIAL REAL ESTATE TRENDS

E. Fort Bend Market Indicators

Medical Office

4Q11 4Q12

VACANCY 7.1% 7.5%

ABSORPTION 29,068 17,129

RENTAL RATE $25.19 $24.04

Industrial

4Q11 4Q12

VACANCY 7.1% 7.5%

ABSORPTION 97,950 77,289

RENTAL RATE $6.07 $5.38

Retail

4Q11 4Q12

VACANCY 6.4% 5.8%

ABSORPTION 85,411 59,493

RENTAL RATE $19.20 $18.93

SUBMARKET SNAPSHOT | Q4 2012 | E FORT BEND

COLLIERS INTERNATIONAL | FORT BEND15999 City Walk, Suite 250Sugar Land, Texas 77479MAIN +1 281 494 4769www.colliers.com

COLLIERS INTERNATIONAL | P. 2

FORT BEND TEAM

Kolbe Curtice, CCIM, CLSManaging Director

REPRESENTATIVE PROPERTIES – FORT BEND

Dr. John NovakVice President

Jim PrattSenior Vice President

GILLINGHAM DISTRIBUTION CENTER1601 Gillingham Lane, Sugar Land, TX

±369,439 SF (divisible to 86,000 SF) ±30,466 SF of office space 28’ and 38.5’ clear heights 69 total overhead doors 44 dock doors with levelers/seals 2 oversized drive-in ramps Power: 2,000-amp service 315 parking spaces

HEALIX BUILDING - SUGAR CREEK PLACE II14140 Southwest Freeway, Sugar Land, TX

Four-story, 69,014-SF office building on 2.2 acres 2nd generation space available Class “A” Sugar Land building Excellent visibility with highway frontage Shared covered parking, 4/1,000 ratio 24-hour card key access Fiber optic cabling

TELFAIR COMMERCIAL TRACTSHwy 59 & University Blvd, Sugar Land, TX

Comprised of +/- 187 acres Located within Newland Communities’ new

master-planned residential development of Telfair One of the hottest markets in the Houston MSA Ideal for office, retail, hotel development,

commercial At the most active freeway location in Fort Bend

County

Land

Industrial

Retail

Corbin JanssenAssociate

Office

LEXINGTON SQUARE16525 Lexington Blvd, Sugar Land, TX

Prime retail space at high-traffic intersection Strategic location across from First Colony Mall,

near Sugar Land Town Square 2nd generation space available Exterior signage available Anchored by CVS pharmacy Easy access to Marriott, Sugar Land City Hall,

Methodist Hospital