Austin Market Report Q3 2015

A U S T I NMARKETR E P O R T

3Q 2015

AQUILAKNOWSAUSTIN

KEEPING YOU INFORMEDAQUILA Commercial is dedicated to

providing quality service to our clients.

We understand that real time market data

helps our clients make smart, informed real

estate decisions. This report is produced

and distributed quarterly. To receive our

updates, opt in at aquilacommercial.com.

DISCLAIMER This report utilizes various

real estate and economic data sources. The

information contained herein is confidential

and proprietary in nature. No warranties or

guarantees are made as to the accuracy of

the information contained herein.

Hartland Plaza; Photo by Scott Mason Photography

323 2015 AQUILA Austin Market Report

Last quarter, the Austin Market Report focused on

development in the Austin office market. This quarter

we are going to delve deeper into the underpinning of

the development, as well as the overall Austin office

real estate market, by focusing on the Austin economy.

As the following pages will illustrate, the overall Austin

office market remains very healthy. Since the beginning

of 3Q 2014, Austin has added 2,154,010 sf of net rentable

area. 2,156,761 sf were absorbed over this same period,

justifying the latest wave of deliveries. The citywide

vacancy rate is now 10.86% and the overall market

average asking Class A full service rental rate is at an

all-time high of $36.36/sf (see AQUILA’s breakdown of

average as-is full service rental rates versus full service

rates in this quarter’s Special Report on pages 5–7) .

Austin’s population growth is among the fastest in the

nation. Between 2010 and 2014, the city’s population

grew by 13.2%, far exceeding the state of Texas (7.2%)

and the U.S. (3.3%) rates1. Between 2010 and 2013, out of

the fifty major markets in the country, Austin ranked first

in net migrants as a percentage of total population with

5.8% (or 109,744 people) of the total 2013 population.

Only two other metros exceeded 4% in this category2.

Also worth noting, nearly 50% of new migrants to Austin

arrived from outside of Texas.

Austin’s residential real estate market is benefitting from

the city’s growth. Earlier this year, WalletHub created a

study comparing 25 of the largest metro areas across

ten metrics indicating the well-being of their housing

markets. Austin came in sixth overall, with two of the

highlights being: third lowest in “underwater” mortgages

and eighth highest in home equity/loan value ratio. As of

August 2015, FreddieMac’s Multi-Indicator Market Index

has Austin as the second most stable housing market in

the U.S.

VIEW FROMTHE

EAGLE’S NESTRYAN PARZICK

Market Research Director

AQUILA Commercial

[email protected]

4

According to the Austin Chamber of Commerce, the

Austin metropolitan area added 29,300 jobs between

September 2014 and September 2015, a 3.2% increase.

This percentage change ranked Austin eleventh out of

the top fifty metros in the country. Of these jobs, 10,200

were in the Professional & Business Services category,

the category within which workers are most likely to

occupy office space. Over the same time period, Austin

unemployment decreased by 26.2%, which leaves the

Capital City with a seasonally adjusted unemployment rate

of 3.2%. The 3.2% unemployment rate is the lowest rate in

the top fifty metros in the U.S.

Basing our analysis on the PricewaterhouseCoopers/

Thomson Reuters/NVCA MoneyTreeReport that tracks

venture capital nationwide, there have been 57 venture

capital deals in Austin this year through 2Q 2015. This

value is the highest for the first two quarters of a year

recorded since 2005, which is when our data began to be

broken down on a quarterly basis. These 57 deals netted

$429.64 million for local firms in two quarters, which puts

the city on pace to top the highest yearly total since 2002

($716.18 million raised in 2007).

Another indicator signaling the health of a metro area

is Gross Domestic Product (GDP). The U.S. Bureau of

Economic Analysis shows that Austin had the third highest

change of large metro areas in real GDP from 2013 to

2014, while also having the second highest change in real

GDP from 2009 to 2014.

All of the indicators analyzed above point toward Austin

having a strong underlying foundation for its commercial

real estate market to continue to expand. Our proprietary

model, which powers our AQUILA projection graphs

for each major submarket (located at the end of each

submarket section in this report), illustrates the positive

effect of the strong economy on vacancy rates and

rental rates over the next two years using scenarios of

conservative (1%) and aggressive (3%) job growth.

HISTORICAL SNAPSHOT OF AUSTIN OFFICE SPACE

Quarter Net Rentable Area Direct Available SF Net Absorption* Direct & Sublease Vacancy Rate

Average Class A Full Service Rental Rate

2013 Q4 42,444,966 4,960,873 (14,664) 12.14% $33.32

2014 Q1 42,444,966 4,815,598 167,798 11.74% $33.47

2014 Q2 42,475,999 4,647,525 6,277 11.79% $33.44

2014 Q3 42,720,370 4,373,103 377,613 11.41% $33.67

2014 Q4 42,784,115 4,068,526 420,985 10.56% $34.78

2015 Q1 43,665,210 4,612,974 383,535 11.49% $36.27

2015 Q2 44,534,490 4,795,149 585,639 11.90% $35.60

2015 Q3 44,874,380 4,650,151 766,602 10.86% $36.36

* Absorption includes sublease space. Numbers based on CBRE statistics.

1 US Census Bureau. “2014 Population Estimates Program.”01 July 2014. Web. 12 October 2015.

2 Ramser, Chris. “Central Texas Economy in Perspective.” 18 November 2014. Austin Chamber of Commerce. 12 October 2015.

ALL OF THE INDICATORS ANALYZED ABOVE POINT TOWARD AUSTIN HAVING A STRONG UNDERLYING FOUNDATION FOR ITS COMMERCIAL REAL ESTATE MARKET

TO CONTINUE TO EXPAND.

ECONOMIC INDICATORCHECK BOXES:

R Population GrowthR Healthy Housing MarketR Job ExpansionR Strong Venture Capital InvestmentR Robust Gross Domestic Product


RENTAL RATES ARE RISING...AREN'T THEY?

According to Turner Construction’s Building Cost Index, which measures costs in the non-residential building

construction market nationwide, there has been an 11.8% increase in construction costs since 1Q 2013. This

index includes labor rates and productivity, material prices, and the competitive condition of the marketplace.

The Houston market (data for Austin is not tracked) has seen a 14.3% increase in standard office space buildout

between 2013 and 2015, according to Kirksey Architecture’s Construction Cost Update. By contrast, full service

rental rate growth in Austin, TX over the same period was a comparable 13.9%. But, for a truly local analysis,

AQUILA compared face rates and effective rates over the last 24 months to better understand rate dynamics in

each of the city’s major submarkets.

METHODOLOGYOur analysis examined lease comps for our competitive set of buildings (see Appendix) in the major Austin submarkets

(CBD, NW, and SW) that commenced January 1, 2013 through the end of 2015. To make sure that leases similar in

nature were being compared, only new leases were included in this study. Excluding renewals eliminated the

variability associated with the general practice of owners signing leases with conventionally lower tenant improvement

allowances (TIs) than those offered to new tenants for a new space. A similar study we conducted, which included

renewals and expansions, netted similar results on a less dramatic scale. Considering the rising costs of construction,

which generally affects new leases more, we felt it prudent to only concentrate on the new leases in this report to show

a clearer picture. This filtering netted 333 leases used in the study (CBD: 100, NW: 125, and SW: 108).

Two calculations were made for each lease and compared to each other:

• Average Full Service (FS) Rate. This rate is the average total annual payment made by the tenant over the course

of the lease term, measured in dollars per square foot. Rent abatement and operating expenses are included.

• Average As-Is Full Service (FS) Rate. This rate prorates the TIs over the term of the lease and subtracts them

from the Average FS Rate.

Keeping the operating expenses in both calculations maintains a better “apples-to-apples” comparison while illustrating

what tenants are paying out of pocket. The two calculations for each lease were plotted on a graph at the corresponding

lease’s commencement date and a regression line was inserted to show the behavior of the rates over time.

This quarter, in light of the 14 quarters of rent growth in Austin over the last 16 quarters, the AQUILA Market Research Department set out to achieve a more holistic understanding of this growth, taking into account all factors, especially the ongoing rise in construction pricing.

6

RESULTSIn Graph 1, the trendlines show the

disparity between the rates becoming

smaller around the beginning of 2014, but

more than doubling less than two years

later. When broken down into submarkets,

the same held true to different degrees,

with the exception of the NW submarket

where the variance was roughly the same.

The gap illustrates the difference in the

Average FS Rate and the Average As-Is

FS Rate, which can be translated into the

amount an owner is providing in TIs.

There are a number of explanations that

can account for the cause of these trends:

1. Construction costs are increasing across

the board. The more it costs tenants to

build out their space, the less likely many

tenants will be able to afford to move into

nicer buildings. Owners don’t want to

lose the long term income by foregoing

upfront costs in the term of additional TIs.

2. New product in individual submarkets

come in different flavors. As noted before,

the CBD and SW submarkets followed the

trend of the majority of the overall Austin

market, whereas the NW bucked the

trend. The recent new deliveries in Austin

adhered to the traditional principles of the

$15

$20

$25

$30

$35

$40

$45

$50

$55

Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15

Rent

al R

ate

($/s

f)

Average FS Rate Average As-Is FS Rate Average FS Rate Trendline Average As-Is FS Rate Trendline

$2.99 $2.57

$5.74

Graph 1: Citywide Avg. Full-Service vs. Avg. As-Is Full-Service Rental Rates

$25

$30

$35

$40

$45

$50

$55


Rent

al R

ate

($/s

f)


$3.56

$3.48

$6.92

Graph 2: CBD Avg. Full-Service vs. Avg. As-Is Full-Service Rental Rates


submarkets. Downtown and SW buildings are superior products, whereas the NW has more traditional space. The need for higher-end

improvements drives up the tenant buildout costs. To entice users to come to these new buildings, owners have been increasing their

concessions. In the NW, owners can still increase their rental rates due to the hot market, but do not have to worry about giving as much

money for improvements for standard space. Additionally, many tenants that have been priced out of the CBD and SW submarkets tend

to do deals in the NW and will stick to a more budget-friendly rent while also forgoing pricey improvements to their space.

3. Existing product is not immune to submarket trends. Coinciding with the development tendencies, the CBD and SW submarkets have

seen more inflation with purchases of existing product than the NW submarket. Because of this higher $/sf for the purchase, landlords

need to charge higher rental rates to support recent acquisition prices. Again, to lure tenants to these expensive spaces, higher tenant

improvement allowances are a tool owners have been effectively using. For the most part, NW submarket properties have been

consistently filling up so the market is healthy, but there are significantly more “large availabilities” out there compared to the other

submarkets. This risk to investors coupled with a large number of available product in the submarket, dictates a lower $/sf on purchases.

The lower purchase price translates to

owners being able to ask for lower rental

rates than the CBD and SW in a submarket

where cost-conscious tenants are already

attracted.

WHAT DOES THIS MEAN FOR YOU?Tenants:

You should expect to keep paying more

in rent than you would have a year ago,

but you can expect a nominally larger

tenant improvement allowance. Even

with increased tenant improvement

funds, you will likely see the achievable

scope of work for your tenant finish is not

necessarily going to be any greater than it

would have been a year ago.

Landlords:

There are underlying market forces

that are pushing for more concessions

in your leases. Is it more important to

save a couple dollars per square foot in

upfront allowances or to charge more in

rent over the life of the lease? Though

revenue continues to increase, landlords

are having to pay more out of pocket to

tenants.

$15

$20

$25

$30

$35

$40

$45


Rent

al R

ate

($/s

f)


$2.63

$3.03

$2.95

Graph 3: Northwest Avg. Full-Service vs. Avg. As-Is Full-Service Rental Rates

$15

$20

$25

$30

$35

$40

$45


Rent

al R

ate

($/s

f)


$2.92$1.59

$6.33

Graph 4: Southwest Avg. Full-Service vs. Avg. As-Is Full-Service Rental Rates

8

AUSTIN CITYWIDE3Q UPDATE

766,602 SFNet Absorption

10.86% Direct & Sublease Vacancy Rate

$36.36Avg. Class A Full Service Rental Rate

3Q 2015 had another 339,890 sf of new product come

online, which is a drop from the robust additions the

previous two quarters posted (869,280 sf and 881,095 sf),

but still significant nonetheless. With a strong 766,602 sf

of positive absorption this quarter coupled with the lower

delivery number, Austin saw its total vacancy rate drop to

10.36% from last quarter’s 10.77% rate. This quarter also

saw Austin’s Class A full service asking rates increase to

$36.36, continuing the overall upward trend of higher rates

in 14 out of the last 16 quarters.

The Texas State Capitol; Photo Courtesy of: Anthony Quintano


MOVING OUTThe following large users left for

new spaces or downsized.

PEARSON EDUCATIONvacated 33,945 sf at Travesia

Corporate Park III after

determining to consolidate its four

Austin locations into one.

SCOTT, DOUGLAS, MCCONNICOleft 23,127 sf in 600 Congress and

moved into 40,303 sf in Colorado

Tower (also within the CBD).

MAJOR LEASES SIGNED Leases signed this quarter over 25,000 sf:

CBD• RetailMeNot renewed its existing 95,537 sf at 301 Congress and expanded

by another 4,518 sf.

• Cirrus Logic signed a 84,872 sf lease that helped kick off construction at Shoal Creek Walk. The company will be moving its entire office from 300 W 6th St to the new building upon delivery in 3Q 2017.

• Gerson Lehrman Group renewed and expanded at 301 Congress. They now have a total of 41,803 sf.

• AllClear ID renewed and expanded in 823 Congress to come to a total of 33,720 sf.

• TechSpace entered the Austin market by leasing 28,190 sf in San Jacinto Center.

• Spanning Cloud Apps signed a lease for 20,391 sf in 501 Congress.

SOUTHWEST• Logitech renewed and expanded in Two Barton Skyway to occupy a total

of 99,047 sf.

NORTHWEST• Electronic Arts renewed 100,787 sf at 7700 Parmer Bldg C and expanded

by another 74,681 sf within the same building.

• Dun & Bradstreet Corporation signed a 61,471 sf lease at 7700 Parmer Bldg A.

• Oracle expanded by 56,334 in 7700 Parmer Bldg B to add to their current 123,567 sf of space.

• Motion Computing signed a lease for 32,319 sf in Park Centre Building II.

SUBMARKETMAP

CBD

Central

East/Northeast

North

Northwest

Round Rock

South/Southeast

Southwest

10

SNAPSHOT:CAPITAL MARKETSMAJOR SALES TRANSACTIONSMultiple transactions involving large portfolios were on the books for 3Q 2015, with two such transactions occurring

adjacent to each other (the Domain and Broadmoor portfolios). Additionally, two downtown buildings (501 Congress and

515 Congress) were split and sold by the same owner in separate transactions.

Market CBD

Class A

Size (SF) 122,551

Buyer AFIAA Swiss Foundation

Seller Stream Realty Partners

Price $41,213,093

Price/SF $336.29

Notes Purchase of building and adjoining parking garage; total price including the parking garage was $79,100,000

501 CONGRESS SOLD515 CONGRESSSOLD

Market CBD

Class A

Size (SF) 258,176

Buyer KBS

Seller Stream Realty Partners

Price Undisclosed

Price/SF Undisclosed

CANYON HILLS OFFICE CENTER

Market NW

Class B

Size (SF) 68,604

Buyer Gemini Rosemont Commercial Real Estate

Seller Rosemont Realty

Price $11,331,389

Price/SF $165.17

SOLD CAPITAL RIDGE

Market SW

Class A

Size (SF) 216,511

Buyer Miller Global Properties

Seller Riverside Resources

Price Undisclosed

Price/SF Undisclosed

SOLDWESTLAKE PLACE

Market SW

Class B

Size (SF) 60,338

Buyer Moore & Associates

Seller Berns Commercial Properties

Price $11,900,000

Price/SF $197.22

SOLD

515 Congress


SOLD AMBER OAKS CORPORATE CENTER

Market NW

Class A

Size (SF) 644,344

Buyer Menlo Equities

Seller CBRE Global Investors

Price $116,000,000

Price/SF $180.03

BROADMOOR CAMPUS

Market NW

Class A

Size (SF) 1,095,848

Buyer Brandywine Realty Trust

Seller IBM Corp

Price $338,632,000

Price/SF $309.01

Notes Buyer bought the remaining 50% interest in this 7 building portfolio. (They already bought a 50% interest last year.) Price includes purchase of Bldgs. A-G as well as an allocated value to excess land on Bldg. F parcel. Buyer plans to develop on the excess land in the future.

SOLDDOMAIN PORTFOLIO

Market NW

Class A

Size (SF) 696,322

Buyer TIER REIT

Seller RREEF

Price $201,100,000

Price/SF Undetermined

Notes Domain 3 & 4 (179,006 sf and 152,012 sf, respectively) were purchased outright, Domain 2 & 7 (143,331 sf and 221,973 sf, respectively) were acquired at 50% ownership, and 24 acres of developable land was also in the deal.

SOLD

MAJOR PORTFOLIOS

801 BARTON SPRINGSIn August 2015, a partnership between Austin-based

Generational Commercial Properties and Houston-based

HTZ Investments purchased the 34,000 square foot site

located at 801 Barton Springs in Austin, Texas. The new

owners will construct an office building featuring 90,500 SF

office and a 1,800 SF restaurant. Four stories of office will sit

atop four and a half levels of parking and feature stunning

views of the downtown Austin skyline and greenbelt. Learn

more about this project at 801BartonSprings.com.

12

AUSTIN OFFICE DEVELOPMENT PIPELINE

4Q

Research Park Plaza V 172,854 SF Northwest

Encino Trace II 158,137 SF Southwest

Quarry Oaks III 137,615 SF Northwest

Lamar Central 131,722 SF Central

Aspen Lake Two 129,000 SF Northwest

1Q

5th + Colorado 179,000 SF CBD

Eastside Village 94,500 SF East

Lakes at TechRidge - Bldg. C 39,400 SF East

NorthShore 23,592 SF CBD

2Q

905 & 906 Broadmoor* 345,000 SF Northwest

La Frontera Plaza 97,941 SF Round Rock

Domain 5 74,787 SF Northwest

*Already existing--coming to market 2Q 2016

4Q

Domain 8 255,000 SF Northwest

3Q

Braker Point III† 195,230 SF Northwest

The Diamond Building at Mueller

37,305 SF East

†Already existing--coming to market 3Q 2016

This timeline shows office projects over 30,000 SF that have either broken ground or will be breaking ground soon and

the estimated year and quarter of delivery.

2015 2016 2017 planned


1Q

500 W 2nd 489,404 SF CBD

Future Developments

10721 Domain Dr. 308,000 SF Northwest

310 Comal 37,500 SF East

405 Colorado TBD SF CBD

604 W 6th Street 31,035 SF CBD

Amber Oaks Phase I 90,300 SF Northwest

Amber Oaks Phase II 90,300 SF Northwest

Amber Oaks Phase III 45,000 SF Northwest

Aspen Lake Three 128,700 SF Northwest

Cityline at MLK 150,000 SF East

Four Points Centre Building 3 250,000 SF Northwest

Four Points Centre Building 4 80,000 SF Northwest

Frontera Ridge 400,000 SF Round Rock

Lantana Ridge I 87,500 SF Southwest

Lantana Ridge II 87,500 SF Southwest

Mueller Market District 2,000,000 SF East

Novare/Post Office TBD SF CBD

Paloma Ridge C 112,500 SF Northwest

Plaza Saltillo 125,000 SF East

Rainey Gateway 355,000 SF CBD

Regency Park 90,000 SF Southwest

Rollingwood Center III 107,000 SF Southwest

St. Elmo 225,000 SF South

The Backyard - Bldgs. B, J, & H 171,450 SF Southwest

The Lakes at TechRidge - Bldg. A 48,800 SF East

The Lakes at TechRidge - Bldg. B 48,800 SF East

The Park @ Mueller 116,000 SF East

The Terrace 3 203,130 SF Southwest



The Waterfront 625,000 SF South

Third + Shoal 338,279 SF CBD

Waller Creek Center 325,000 SF CBD

3Q

Shoal Creek Walk 218,432 SF CBD

2015 2016 2017 planned

2Q

801 Barton Springs 90,500 South

14


7.83%Direct & Sublease Vacancy Rate

$44.17/SFAvg. Class A Full Service Rental Rate

CENTRALBUSINESSDISTRICT

3Q UPDATEVacancy rates fell dramatically across all

classes of buildings in the CBD from 2Q 2015

to this quarter, dropping 237 basis points

from 10.20% to 7.83%. This was mirrored

in our competitive set of buildings (Class

A buildings located in, or near, the core

of downtown), in which the vacancy rate

dropped from an already low 8.03% even

further to 6.32%. To highlight how much

the CBD submarket has tightened over the

course of a year, the vacancy rate of the

competitive set of buildings in 3Q 2014 was

9.70% with 639,036 less sf of rentable space.


Class A asking full service rental rates climbed for the overall

CBD submarket, increasing from $41.90/sf to $44.17/sf.

With the exception of last quarter's anomalous drop, rental

rates have continuously grown since 2Q 2014. The 3Q 2015

value continues this trend. The competitive set of buildings

saw a fourteenth consecutive quarter of positive change in

this category, swelling almost a full dollar to $48.70/sf from

last quarter’s $47.74/sf. Again, to emphasize the demand

for CBD office space, the asking full service rental rate in

3Q 2014 was $45.13/sf for the competitive set, $3.57/sf less

than it is today.

There were not any new deliveries this quarter in the CBD,

but Shoal Creek Walk broke ground and is projected to be

completed by 3Q 2017. This development will have 218,432

sf of leasable office space and is already 39% preleased to

Cirrus Logic. Two new buildings – 5th + Colorado (179,000

sf, 26% preleased) and NorthShore (23,592 sf, 100%

preleased) – should be completed in 1Q 2016 and 500 W

2nd (489,404 sf, 42% preleased) is on track to be delivered

1Q 2017.

Only two existing buildings have blocks of available space

above 20,000 sf this quarter, down from six buildings last

quarter. The projects in development are also slowly losing

large blocks of space as more leases are being signed in

these buildings. As the CBD continues to draw users and

businesses are expanding, this is a limiting scenario for

companies looking to grow downtown or move into the

CBD.

TO EMPHASIZE THE DEMAND FOR CBD OFFICE SPACE, THE ASKING FULL

SERVICE RENTAL RATE IN 3Q 2014 WAS $45.13/SF FOR THE COMPETITIVE SET,

OVER $3.50 LESS THAN IT IS TODAY.

Lobby at 301 Congress; Photo courtesy of Commonwealth Partners

16

CBD BY THE NUMBERS



2013 Q4 9,084,414 1,045,081 6,826 12.00% $41.61

2014 Q1 9,084,414 1,032,112 17,164 11.81% $41.45

2014 Q2 9,084,414 1,021,461 (13,728) 11.96% $40.88

2014 Q3 9,252,285 1,041,014 153,098 11.90% $41.39

2014 Q4 9,252,285 802,517 227,661 9.44% $43.13

2015 Q1 9,768,770 1,135,835 139,236 12.81% $43.83

2015 Q2 9,809,755 870,240 291,638 10.20% $41.90

2015 Q3 9,809,755 672,222 232,375 7.83% $44.17

CBD SUBMARKET

AVAILABLE SF VS. VACANCY RATE NET ABSORPTION

VACANCY RATES VS. RENTAL RATES


0%

3%

6%

9%

12%

15%

18%

$39.00

$40.00

$41.00

$42.00

$43.00

$44.00

$45.00

Vaca

ncy

Rate

Rent

al R

ate

Average Class A Full Service Rental Rate Direct & Sublease Vacancy Rate

83%

84%

85%

86%

87%

88%

89%

90%

91%

92%

93%

(50,000)

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

Occ

upan

cy R

ate

Abso

rptio

n (S

F)

Net Absorption* Direct & Sublease Occupancy Rate

0%

2%

4%

6%

8%

10%

12%

14%

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

Vaca

ncy

Rate

Avai

labi

lity

(SF)

Direct Available SF Sublease Available SF Direct & Sublease Vacancy Rate


AUSTIN CBD OFFICE RENTAL RATE PROJECTIONS

AUSTIN CBD OFFICE VACANCY RATE PROJECTIONS

7.5

8.0

8.5

9.0

9.5

10.0

10.5

11.0

0%

5%

10%

15%

20%

25%

30%

35%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Mar

ket S

ize

(Mill

ions

of S

F)

Tota

l Vac

ancy

Rat

e (%

)

Market Size Historic Vacancy Rate AQUILA Model 1% Job Growth 3% Job Growth

3% Job Growth

1% Job Growth

Shoal Creek Walk

500 W 2nd

5th + ColoradoNorthShore

$15

$20

$25

$30

$35

$40

$45

$50

$55

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Full

Serv

ice

Rent

al R

ates

($)

Historic Rental Rate AQUILA Model 1% Job Growth 3% Job Growth

3% Job Growth

1% Job Growth

18

CBD DEVELOPMENT& LARGE AVAILABILITY

OFFICE UNDER CONSTRUCTIONHOTEL/RESIDENTIAL UNDER CONSTRUCTIONFUTURE DEVELOPMENTSEXISTING AVAILABILITIES

6th Street

5th Street

Barton Springs Rd.

N. L

amar

Blv

d.

Cong

ress

Ave

.

11th Street

S. 1

st S

tree

t

Cesar Chavez St.

6th Street6th Street6th Street

5th Street

5th Street

5th Street

Barton Springs Rd.

Barton Springs Rd.

Barton Springs Rd.

N. L

amar

Blv

d.

N. L

amar

Blv

d.

N. L

amar

Blv

d.

Cong

ress

Ave

.

Cong

ress

Ave

.

Cong

ress

Ave

.


S. 1

st S

tree

t

S. 1

st S

tree

t

S. 1

st S

tree

t

Cesar Chavez St.

Cesar Chavez St.

Cesar Chavez St.

500 W. 2nd

Northshore

TheIndependent

ShoalCreekWalk

604 W.Sixth

Novare/Post Office

OneCongressPlaza

FairmontHotelWallercreekcenterRaineyGateway

AustinAmericanStatesman801 BartonSprings

San JacintoCenter

Hotel Zaza/Gables 5th +Colorado

5th &West

third +shoal

Aloft & element

holiday Inn& hotel indigo

Hyatthouse hotel

405Colorado

70Rainey

the austin properGreen waterresidential tower


Building Available SF Max. Contiguous

One Congress Plaza 72,848 SF 23,479 SF

San Jacinto Center 40,207 SF 20,286 SF

OFFICE UNDER CONSTRUCTIONHOTEL/RESIDENTIAL UNDER CONSTRUCTIONFUTURE DEVELOPMENTSEXISTING AVAILABILITIES

6th Street

5th Street

Barton Springs Rd.

N. L

amar

Blv

d.

Cong

ress

Ave

.

11th Street

S. 1

st S

tree

t

Cesar Chavez St.


5th Street

5th Street

5th Street

Barton Springs Rd.

Barton Springs Rd.

Barton Springs Rd.

N. L

amar

Blv

d.

N. L

amar

Blv

d.

N. L

amar

Blv

d.

Cong

ress

Ave

.

Cong

ress

Ave

.

Cong

ress

Ave

.


S. 1

st S

tree

t

S. 1

st S

tree

t

S. 1

st S

tree

t

Cesar Chavez St.

Cesar Chavez St.

Cesar Chavez St.

500 W. 2nd

Northshore

TheIndependent

ShoalCreekWalk

604 W.Sixth

Novare/Post Office

OneCongressPlaza

FairmontHotelWallercreekcenterRaineyGateway

AustinAmericanStatesman801 BartonSprings

San JacintoCenter

Hotel Zaza/Gables 5th +Colorado

5th &West

third +shoal

Aloft & element

holiday Inn& hotel indigo

Hyatthouse hotel

405Colorado

70Rainey

the austin properGreen waterresidential tower

Building % Preleased Total SF Est. Delivery

500 W 2nd 42% 489,404 SF 1Q 2017

5th + Colorado 26% 179,000 SF 1Q 2016

NorthShore 100% 23,592 SF 1Q 2016

Shoal Creek Walk 39% 218,432 SF 3Q 2017

Units/Rooms Est. Delivery Max. Contiguous

5th & West 154 Units 4Q 2017

Aloft & Element 422 Rooms 3Q 2017

Fairmont 1,066 Rooms 3Q 2017

Hotel Indigo/Holiday Inn Express 300 Rooms 4Q 2015

Hyatt House Hotel 190 Rooms 4Q 2016

NorthShore 436 Units 1Q 2017

The Austin Proper 250 Rooms, 120 Units 2Q 2017

Units/Rooms Est. Delivery Max. Contiguous

405 Colorado TBD Office

604 W 6th Street 31,035 SF Office

801 Barton Springs 90,500 SF Office

Austin American Statesman TBD Office

Novare/Post Office TBD Office

Rainey Gateway 355,000 SF Office

Third + Shoal 338,279 SF Office

Waller Creek Center 325,000 SF Office

70 Rainey 164 Units Multifamily

Green Water Residential Tower TBD Multifamily

The Independent 370 Units Multifamily

Hotel Zaza/Gables 226 Units, 160 Rooms Hotel/Multifamily

LARGE BLOCKS OF CONTIGUOUS AVAILABILITY

OFFICE PROJECTS UNDER CONSTRUCTION

OTHER PROJECTS UNDER CONSTRUCTION

FUTURE/PLANNED DEVELOPMENTS

20,000 SF + of available space

20

Central Business District AUSTIN, TXQ3 2015 CLASS A AVAILABILITY SUMMARY

SUBLEASE SPACE

AVAILABLE SPACE

23

22

21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

1,421 SF 7,081 SF

300 W 6th 300 W 6th St.

454,225 SF23 Floors

99% Leased$54.42 Gross

33

32

31

30

29

28

27

26

25

24

23

22

21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

8,881 SF

Frost Bank Tower 401 Congress Ave.

535,078 SF33 Floors


13

12

11

10

9

8

7

6

5

4

3

2

1

IBC Bank Plaza500 W 5th St.

194,749 SF13 Floors


30

29

28

27

26

25

24

23

22

21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

23,479 SF

1,761 SF

23,142 SF

5,818 SF

7,432 SF

11,216 SF

One Congress Plaza111 Congress Ave.

518,385 SF30 Floors


21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

19,921 SF

20,286 SF

San Jacinto Center 98 San Jacinto Blvd.

406,279 SF21 Floors


21,218 SF

21,218 SF

21,218 SF

21,218 SF

21,218 SF

21,218 SF

Shoal Creek Walk835 W 6th St.

218,432 SF14 Floors

42% Pre-Leased$49.50 Gross

30

29

28

27

26

25

24

23

22

21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

Colorado Tower303 Colorado St.

373,334 SF30 Floors


21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

16,711

Chase Tower221 W 6th St.

389,503 SF21 Floors


16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

465 SF

7,322 SF

5,004 SF

3,659 SF

875 SF

963 SF 3,520 SF

846 SF 1,716 SF

Austin Centre701 Brazos St.

326,335 SF16 Floors


20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

5,275 SF

10,821 SF

816 Congress 816 Congress Ave.

434,081 SF20 Floors


32

31

30

29

28

27

26

25

24

23

22

21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

8,335 SF

8,936 SF

3,545 SF

8,860 SF


503,951 SF32 Floors


18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

19,000 SF

19,000 SF

8,000 SF

19,000 SF

19,000 SF

19,000 SF

19,000 SF

4,000 SF

5th + Colorado 201 W 5th St.

179,000 SF18 Floors


26

25

24

23

22

21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

1,385 SF

1,455 SF

1,223 SF

6,914 SF

515 Congress515 Congress Ave.

258,176 SF26 Floors


5

4

3

2

118,922 SF


122,747 SF5 Floors


29

28

27

26

25

24

23

22

21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

31,051 SF

32,603 SF

32,603 SF

32,603 SF

33,931 SF

31,822 SF

31,822 SF

31,530 SF

23,500 SF

500 W 2nd 500 W 2nd St.

489,404 SF29 Floors


17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

17,218 SF

6,432 SF

2,195 SF

400 W 15th400 W 15th St.

281,196 SF17 Floors


22

21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

2,809 SF

10,712 SF

6,593 SF

7,887 sf


411,536 SF22 Floors


7,142 SF

6,796 SF

1620 SF

4,669 SF


418,338 SF22 Floors


22

21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

CBD CLASS A AVAILABILITY SUMMARY


Central Business District AUSTIN, TXQ3 2015 CLASS A AVAILABILITY SUMMARY

SUBLEASE SPACE

AVAILABLE SPACE

23

22

21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

1,421 SF 7,081 SF

300 W 6th 300 W 6th St.

454,225 SF23 Floors


33

32

31

30

29

28

27

26

25

24

23

22

21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

8,881 SF

Frost Bank Tower 401 Congress Ave.

535,078 SF33 Floors


13

12

11

10

9

8

7

6

5

4

3

2

1

IBC Bank Plaza500 W 5th St.

194,749 SF13 Floors


30

29

28

27

26

25

24

23

22

21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

23,479 SF

1,761 SF

23,142 SF

5,818 SF

7,432 SF

11,216 SF

One Congress Plaza111 Congress Ave.

518,385 SF30 Floors


21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

19,921 SF

20,286 SF

San Jacinto Center 98 San Jacinto Blvd.

406,279 SF21 Floors


21,218 SF

21,218 SF

21,218 SF

21,218 SF

21,218 SF

21,218 SF

Shoal Creek Walk835 W 6th St.

218,432 SF14 Floors


30

29

28

27

26

25

24

23

22

21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

Colorado Tower303 Colorado St.

373,334 SF30 Floors


21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

16,711

Chase Tower221 W 6th St.

389,503 SF21 Floors


16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

465 SF

7,322 SF

5,004 SF

3,659 SF

875 SF

963 SF 3,520 SF

846 SF 1,716 SF

Austin Centre701 Brazos St.

326,335 SF16 Floors


20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

5,275 SF

10,821 SF


434,081 SF20 Floors


32

31

30

29

28

27

26

25

24

23

22

21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

8,335 SF

8,936 SF

3,545 SF

8,860 SF


503,951 SF32 Floors


18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

19,000 SF

19,000 SF

8,000 SF

19,000 SF

19,000 SF

19,000 SF

19,000 SF

4,000 SF

5th + Colorado 201 W 5th St.

179,000 SF18 Floors


26

25

24

23

22

21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

1,385 SF

1,455 SF

1,223 SF

6,914 SF


258,176 SF26 Floors


5

4

3

2

118,922 SF


122,747 SF5 Floors


29

28

27

26

25

24

23

22

21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

31,051 SF

32,603 SF

32,603 SF

32,603 SF

33,931 SF

31,822 SF

31,822 SF

31,530 SF

23,500 SF

500 W 2nd 500 W 2nd St.

489,404 SF29 Floors


17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

17,218 SF

6,432 SF

2,195 SF

400 W 15th400 W 15th St.

281,196 SF17 Floors


22

21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

2,809 SF

10,712 SF

6,593 SF

7,887 sf


411,536 SF22 Floors


7,142 SF

6,796 SF

1620 SF

4,669 SF


418,338 SF22 Floors


22

21

20

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2

1

22 7700 Parmer; Photo by Third Eye Photography


NORTHWEST SUBMARKET3Q UPDATE




The vacancy rate for all classes of buildings in the

Northwest (NW) submarket fell from 11.56% to 9.96%. This

is in contrast to our competitive set of buildings (newer

suburban office buildings that typically have structured

parking, amenities such as conference rooms, workout

facilities and/or delis*), which rose from 9.00% last quarter

to 10.64% this quarter. The conflicting trajectory of the

vacancy rates between our competitive set and the overall

Northwest submarket data can be explained by the fact

that the overall numbers come from CBRE’s data which

does not take into account Paloma Ridge A & B – two Class

A buildings that delivered this quarter.

*See full list of competitve set buildings in the appendix.

24

NORTHWESTSUBMARKET UPDATE

The Paloma Ridge buildings combine for 212,400 sf of new

rental space that is 100% vacant. The additional unleased

space in the competitive set of buildings raises the vacancy

rate from 9.19% without Paloma Ridge to 10.64% with

Paloma Ridge included in the set.

In addition to the vacancy rate discrepancy in the NW

submarket, there is also a difference in the absorption

rates between our competitive set and all classes of

buildings in the CBRE data. When a building delivers,

CBRE does not consider the leased space absorbed until

the tenant moves in. We do not consider the leased space

available in our competitive set, thereby treating the newly

supplied leased space as area that has been absorbed by

new tenants. Over 325,000 sf of new office space has been

built in the NW in 2015, much of which was occupied this

quarter. Looking back at the competitive set absorption

values, the previous two quarters had already accounted

for these new tenants.

Asking rental rates across all Class A buildings increased

for the seventh straight quarter, jumping from $32.74/sf

to $33.26/sf. The competitive set decreased this quarter,

falling to $33.55/sf from $33.83/sf. Six competitive

set buildings comprising of almost 400,000 sf in net

rentable area – all represented by the same brokerage

firm – drastically reduced asking rates this quarter by an

average of $8.85/sf, causing the overall asking rate of the

competitive set to drop. If these six buildings had the same

asking rate as last quarter, then the overall competitive

set would be at $33.81/sf. Additionally, there are 23

buildings (all but three in the competitive set) with over

20,000 sf available this quarter, jumping from seventeen

last quarter. These sizable vacancies in buildings could be

prompting landlords to lower their asking rates.

Other than Paloma Ridge in the Far Northwest micromarket,

there were not any new deliveries this quarter. Domain 8

kicked off construction this quarter and will bring 255,000

UFCU Plaza; Photo by: Scott Mason Photography


sf to the Arboretum/Domain

micromarket in December

of 2016. Four new buildings

should be open for tenants in

4Q 2015: Domain 1 (124,557 sf

- December of 2015), Research

Park Plaza V (172,854 sf –

November 2015), Aspen Lake

Two (129,000 sf – October

2015), and Quarry Oaks III (137,615 sf – December 2015).

At the close of 3Q 2015, both Domain 1 and Research Park

Plaza V are 0% leased while Quarry Oaks III is 100% leased

to Bazaarvoice and Aspen Lake Two is 100% leased to Q2.

The Arboretum/Domain micromarket’s vacancy rate went

up and asking rental rate went down from last quarter,

though both values are still considered strong overall. The

asking rental rate for this micromarket could actually be

$34.90/sf (an increase over last quarter’s $34.77/sf rate)

if the six aforementioned buildings with dramatic asking

rate decreases had stayed the same. Instead, the asking

rental rate for Class A buildings lowered to $34.38/sf.

Additionally, the vacancy rate of 7.19% is still very healthy

and supports new development underway in the area.

The Shepherd Mountain

micromarket continues its

auspicious trend in both

vacancy rates and asking

rental rates. The asking

rental rates for Class A

buildings increased a

dime from $34.45/sf last

quarter. The vacancy

rate decreased from 12.41% to 12.26%. Both are subtle

changes, but still in the positive direction.

The Far Northwest micromarket welcomed Paloma Ridge

A & B this quarter. The 212,400 sf of unfilled space raised

the vacancy rate from last quarter’s 10.69% up to 15.48%.

Subtracting out Paloma Ridge, the micromarket actually

would have decreased its vacancy rate from last quarter to

10.61%. Paloma Ridge also affected the asking rental rates

for the Far Northwest micromarket. Instead of a $31.65/

sf asking rate (a cent lower than last quarter), the actual

asking rate is $31.42/sf. It would not be surprising to see

these trends continue since Research Park Plaza V is set

to be delivered next quarter and is 100% vacant as of the

end of 3Q 2015.

NORTHWESTMICROMARKETS

Arboretum/Domain

Far Northwest

Shepherd Mountain

ASKING RENTAL RATES ACROSS ALL CLASS A BUILDINGS INCREASED FOR THE SEVENTH STRAIGHT QUARTER, JUMPING

FROM $32.74/SF TO $33.26/SF.

26

NORTHWEST BY THE NUMBERSNORTHWEST OVERALL SUBMARKET PERFORMANCE





2013 Q4 16,747,039 1,745,316 158,788 10.82% $27.33

2014 Q1 16,747,039 1,635,834 102,128 10.21% $29.20

2014 Q2 16,697,337 1,493,813 (12,658) 10.02% $29.89

2014 Q3 16,697,337 1,566,544 (103,939) 10.64% $30.65

2014 Q4 16,817,337 1,540,054 137,486 10.46% $30.83

2015 Q1 17,154,310 1,879,975 98,887 11.65% $32.06

2015 Q2 17,269,310 1,819,734 116,457 11.56% $32.74

2015 Q3 17,269,310 1,665,124 276,295 9.96% $33.26* Absorption includes sublease space. Numbers based on CBRE statistics.

0%

3%

6%

9%

12%

15%

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2013Q4

2014Q1

2014Q2

2014Q3

2014Q4

2015Q1

2015Q2

2015Q3

Vaca

ncy

Rate

Avai

labi

lity

(SF)


85%

86%

87%

88%

89%

90%

91%

92%

93%

94%

(150,000)

(100,000)

(50,000)

0

50,000

100,000

150,000

200,000

250,000

300,000

2013Q4

2014Q1

2014Q2

2014Q3

2014Q4

2015Q1

2015Q2

2015Q3

Occ

upan

cy R

ate

Abso

rptio

n (S

F)


5%

7%

9%

11%

13%

15%

$25.00

$27.00

$29.00

$31.00

$33.00

$35.00

2013Q4

2014Q1

2014Q2

2014Q3

2014Q4

2015Q1

2015Q2

2015Q3

Vaca

ncy

Rate

Rent

al R

ate



NORTHWEST SUBMARKET OFFICE RENTAL RATE PROJECTIONS

NORTHWEST SUBMARKET OFFICE VACANCY RATE PROJECTIONS

$15

$20

$25

$30

$35

$40

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Full

Serv

ice

Rent

al R

ates

($)


3% Job Growth

1% Job Growth

10.0

11.7

13.3

15.0

16.7

18.3

20.0

0%

5%

10%

15%

20%

25%

30%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Mar

ket S

ize

(Mill

ions

of S

F)

Tota

l Vac

ancy

Rat

e (%

)


3% Job Growth

1% Job Growth

Quarry Oaks IIIDomain 1Research Park Plaza VAspen Lake Two

905 & 906 BroadmoorDomain 5

Domain 8

Braker Pointe III

28

NORTHWEST AUSTINLARGE OFFICE AVAILABILITY

7

6

DOMAINArboretum

Pflugerville

Cedar Park Round Rock

LAKE TRAVIS

1819

1

11

14

15

13

10

20

17

Shepherd mountain

2

3

8

9

12

16

45

21

22

23

Building Direct Available SF Sublease Available SF Total Available SF

1 7700 Parmer - Bldg B 31,438 SF - 31,438 SF

2 7700 Parmer - Bldg C 23,693 SF - 23,693 SF

3 Amber Oaks F 78,034 SF - 78,034 SF

4 Amber Oaks G 9,923 SF 14,730 SF 24,653 SF

5 Amber Oaks J 6,245 SF 33,147 SF 39,392 SF

6 Atrium Office Centre 40,364 SF - 40,364 SF

7 Domain 3 - 20,816 SF 20,816 SF

8 Domain 7 31,000 SF - 31,000 SF

9 Ladera Bend 3 - 56,196 SF 56,196 SF

10 Lakewood Center I - 45,020 SF 45,020 SF

11 Paloma Ridge A 106,200 SF - 106,200 SF

12 Paloma Ridge B 106,200 SF - 106,200 SF

13 Park Centre Bldg. 3 57,562 SF - 57,562 SF

14 Research Park Number Five 39,237 SF - 39,237 SF

15 Plaza 7000 24,405 SF - 24,405 SF

16 Prominent Pointe I 24,342 SF - 24,342 SF

17 Research Park Place 8 33,518 SF - 33,518 SF

18 Riata Corporate Park Bldg 4 93,737 SF - 93,737 SF

19 Riata Corporate Park Bldg 5 23,783 SF - 23,783 SF

20 River Place Corp Park Bldg 7 - 21,477 SF 21,477 SF

21 Tech Center 2 22,295 SF - 22,295 SF

22 UFCU Plaza 25,161 SF - 25,161 SF

23 Travesia Corporate Park 1-3 33,555 SF 33,945 SF 67,500 SF



DOMAINArboretum

Pflugerville

Cedar ParkRound Rock

LAKE TRAVIS

Shepherd mountain

7

16

13

1112

1

6

10

3

2

5

4

81514

9

NORTHWEST AUSTINOFFICE DEVELOPMENT

Building Total SF Percent Preleased Estimated Delivery Status

1 Quarry Oaks III 137,615 100% 4Q 2015 Under Construction

2 Research Park Plaza V 172,854 0% 4Q 2015 Under Construction

3 Domain 1 124,557 0% 4Q 2015 Under Construction

4 Aspen Lake Two 129,000 100% 4Q 2015 Under Construction


6 905 & 906 Broadmoor* 345,000 0% 2Q 2016 Coming to Market

7 Braker Point III† 195,230 0% 3Q 2016 Coming to Market


9 10721 Domain Dr 308,000 0% Planned Planned

10 Amber Oaks Phase I 90,300 0% Planned Planned

11 Amber Oaks Phase II 90,300 0% Planned Planned

12 Amber Oaks Phase III 45,000 0% Planned Planned

13 Aspen Lake Three 128,700 0% Planned Planned

14 Four Points Centre Bldg. 3 250,000 0% Planned Planned

15 Four Points Centre Bldg. 4 80,000 0% Planned Planned

16 Paloma Ridge C 112,500 0% Planned Planned

Under Construction Planned

*Already existing - Coming to market 2Q 2016 †Already existing - Coming to market 3Q 2016

30 Dimensional Place, Building One; Photo courtesy of: Roy Niswanger


SOUTHWEST SUBMARKET3Q UPDATE




32

SOUTHWESTSUBMARKET UPDATE

Across all classes of buildings, the Southwest (SW)

submarket vacancy rate continued to be higher than

its traditional levels, changing from 12.21% last quarter

to 12.29% this quarter. As mentioned in last quarter’s

report, this larger value is likely due to the methodology

CBRE employs when collecting vacancy data. They count

leased space that has not been moved into as vacant,

hence “available.” Since we use CBRE’s data for the overall

market, this contradicts the dataset for the competitive set

buildings (newer suburban office buildings that typically

have structured parking, amenities such as conference

rooms, workout facilities, and/or delis). Capital Ridge,

Rollingwood I & II and 3700 San Clemente all delivered last

quarter in the SW submarket and the tenants are still in

the process of occupying. Capital Ridge is fully leased by

Apple, Rollingwood has 206,709 sf of 214,587 sf leased,

and 3700 San Clemente has 38% of 249,870 sf leased. All

of these leased spaces are considered vacant by CBRE’s

data until the tenants move in, but we do not consider

these spaces as available in our competitive set. In fact,

our competitive set of SW buildings decreased in vacancy

from 8.25% to 7.77%.

The asking rental rates for all Class A buildings in the SW

submarket increased by $1.27/sf this quarter, jumping up

from $33.76/sf to $35.03/sf. The competitive set saw an

increase in asking rental rates for the fifteenth consecutive

quarter, moving from $37.55/sf to $37.61/sf – an $8/sf

increase over the last fourteen quarters. Encino Trace I

delivered this quarter, adding 161,606 sf to the submarket.

This building is 100% preleased with ARM as its major

tenant. Encino Trace II will deliver next quarter. The 158,137

sf building is 15% preleased. No additional major projects

are under construction currently in SW Austin. We expect

Encino Trace; Photo courtesy of Brandywine Realty Trust


to see the vacancy rate continue

to fall after a spike next quarter

from the mostly available Encino

Trace II as the SW submarket

remains a big draw for tenants

due to its unique views, access

and proximity to downtown,

desirable neighborhoods and a

rich talent-base.

The Near Southwest micromarket saw its overall vacancy

rate climb from 7.26% to 9.61%, but direct available

space actually decreased from last quarter. The recently

completed Rollingwood I was 100% preleased to EZCorp,

which put 102,108 sf back on the market for sublease. This

large sublease is skewing the total vacancy rate for this

micromarket. Mimicking the trend for the competitive set,

the Near Southwest micromarket has seen asking rental

rates increase every quarter since 2Q 2011, a staggering

18 quarters of consecutive escalations.

Vacancy rates declined

sharply this quarter

in the Far Southwest

micromarket, down

to 6.71% from an

abnormally high (for

this region) 8.85%. The

delivery of the 100%

leased Encino Trace I

aided in lowering this rate so dramatically. Last quarter a

number of new buildings were delivered, some of which

were not 100% preleased, causing a surge upwards in

the vacancy rate. Absorption is now catching up with this

vacancy. The full service asking rental rate dropped $0.08/

sf to $36.31/sf this quarter breaking a streak of 13 quarters

of rising rental rates.

SOUTHWESTMICROMARKETS

Far Southwest

Near Southwest

THE COMPETITIVE SET SAW AN INCREASE IN ASKING RENTAL RATES FOR THE FIFTEENTH CONSECUTIVE QUARTER, MOVING FROM $37.55/SF TO $37.61/

SF – AN $8/SF INCREASE OVER THE LAST FOURTEEN QUARTERS.

34

SOUTHWEST OFFICE BY THE NUMBERSSOUTHWEST OVERALL SUBMARKET PERFORMANCE





2013 Q4 9,382,293 734,638 (204,816) 8.42% $32.50

2014 Q1 9,382,293 703,789 (22,457) 8.66% $31.19

2014 Q2 9,382,293 853,812 (150,296) 10.26% $30.72

2014 Q3 9,458,793 653,880 164,619 9.24% $31.38

2014 Q4 9,418,793 640,998 42,081 8.41% $34.87

2015 Q1 9,446,430 589,875 66,172 7.98% $34.35

2015 Q2 10,109,725 1,070,609 182,561 12.21% $33.76

2015 Q3 10,257,625 1,192,565 121,673 12.29% $35.03


0%

2%

4%

6%

8%

10%

12%

14%

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2013Q4

2014Q1

2014Q2

2014Q3

2014Q4

2015Q1

2015Q2

2015Q3

Vaca

ncy

Rate

Avai

labi

lity

(SF)


83%

84%

85%

86%

87%

88%

89%

90%

91%

92%

93%

(250,000)

(200,000)

(150,000)

(100,000)

(50,000)

0

50,000

100,000

150,000

200,000

250,000

2013Q4

2014Q1

2014Q2

2014Q3

2014Q4

2015Q1

2015Q2

2015Q3 O

ccup

ancy

Rat

e

Abso

rptio

n (S

F)


0%

2%

4%

6%

8%

10%

12%

14%

16%

$28.00

$29.00

$30.00

$31.00

$32.00

$33.00

$34.00

$35.00

$36.00

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

Vaca

ncy

Rate

Rent

al R

ate



SOUTHWEST SUBMARKET OFFICE RENTAL RATE PROJECTIONS

SOUTHWEST SUBMARKET OFFICE VACANCY RATE PROJECTIONS

5.0

6.4

7.8

9.2

10.6

12.0

0%

5%

10%

15%

20%

25%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Mar

ket S

ize

(Mill

ions

of S

F)

Tota

l Vac

ancy

Rat

e (%

)


3% Job Growth

1% Job Growth

Encino Trace II

$15

$20

$25

$30

$35

$40

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Full

Serv

ice

Rent

al R

ates

($)


3% Job Growth

1% Job Growth

36

SOUTHWEST AUSTINLARGE OFFICE AVAILABILITY

Building Direct Available SF Sublease Available SF Total Available SF

1 CityView Center - 24,478 SF 24,478 SF

2 Rialto II 1,588 SF 36,421 SF 38,009 SF

3 Rollingwood Center I & II 7,878 SF 109,812 SF 117,690 SF

4 3700 San Clemente 51,934 SF - 51,934 SF

5 The Park on Barton Creek 1 - 42,527 SF 42,527 SF

6 The Summit 1-5 52,939 SF - 52,939 SF

7 The Terrace 6 22,771 SF - 22,771 SF

8 The Terrace 7 1,239 SF 19,000 SF 20,239 SF

West Lake Hills

Bee cave

Barton Creek

SOU

THW

EST PKWY

1

5

2

6

3

4

7

8



SOUTHWEST AUSTINOFFICE DEVELOPMENT

Building Total SF Percent Preleased Estimated Delivery Status

1 Encino Trace II 158,137 15% 4Q 2015 Under Construction

2 The Backyard - Buildings B, J, & H 171,450 0% Planned Planned

3 Lantana Ridge I 87,500 0% Planned Planned

4 Lantana Ridge II 87,500 0% Planned Planned

5 Regency Park 90,000 0% Planned Planned

6 Rollingwood Center III 107,000 0% Planned Planned

7 The Terrace 3 203,130 0% Planned Planned



Under Construction Planned

West Lake Hills

Bee cave

Barton Creek

SOU

THW

EST PKWY

2

1

7893

5

4

6

38

SOUTHWEST CLASS A AVAILABILITY SUMMARY

Southwest Submarket AUSTIN, TXQ3 2015 CLASS A AVAILABILITY SUMMARY

FSW

Dimensional Place 1 6304 Bee Caves Rd

7 Floors 220,000 SF


FSW

Capital Ridge 320 Capital of Tx Hwy

7 floors216,511 SF


7

6

5

4

3

2

1

FSW

Dimensional Place 26300 Bee Caves Rd

5 Floors 156,000 SF


NSW

Four Barton Skyway1301 S Mopac Expy

5 Floors222,580 SF


NSW

Three Barton Skyway1221 S Mopac Expy

4 Floors173,302 SF


NSW

Two Barton Skyway1601 S Mopac Expy

4 Floors195,639 SF


3,240 SF

NSW

One Barton Skyway1501 S Mopac Expy

4 Floors195,324 SF98% Leased

$38.90 Gross

5,988 SF 4,189 SF

NSW

Barton Oaks Plaza V901 S Mopac Expy


$39.80 Gross

NSW

Barton Oaks Plaza IV901 S Mopac Expy

5 Floors112,000 SF


7,237 SF

NSW

Barton Oaks Plaza III901 S Mopac Expy


$39.66 Gross

11,073 SF

NSW

Barton Oaks Plaza II901 S Mopac Expy


$40.62 Gross

4,901 SF

2,840 SF

NSW

Barton Oaks Plaza I901 S Mopac Expy

5 Floors99,404 SF


FSW

Encino Trace I5707 Southwest Pkwy

4 floors161,606 SF


42,671 SF

42,369 SF

16,782 SF

33,214 SF

FSW

Encino Trace II5707 Southwest Pkwy

4 floors158,137 SF15% Leased

$34.50 Gross

19,402 SF

FSW

Las Cimas II807 Las Cimas Pkwy


$39.83 Gross

1,135 SF

3,718 SF

FSW

Las Cimas III805 Las Cimas Pkwy


$39.93 Gross

2,587 SF 1,590 SF

FSW

Las Cimas IV900 S Capital of Tx Hwy


$40.97 Gross

3,700 SF

FSW

Las Cimas I804 Las Cimas Pkwy

3 Floors85,000 SF


NSW

Mira Vista2705 Bee Caves Rd

3 Floors121,147 SF


21,265 SF

21,262 SF

NSW

The Park on Barton Creek One

3711 S Mopac Expy5 floors

102,608 SF100% Leased$37.83 Gross

NSW

The Park on Barton Creek Two


102,587 SF100% Leased$37.83 Gross

9,980 SF

6,162 SF

FSW

5000 Plaza on the Lake5000 Plaza on the

Lake Dr.3 Floors

118,063 SF95% Leased

$41.07 Gross

8,936 SF

FSW

Plaza on the Lake I 5001 Plaza on the

Lake Dr.3 Floors


$40.34 Gross

FSW

Plaza on the Lake II4801 Plaza on the

Lake Dr.3 Floors

111,166 SF100% Leased$41.46 Gross

FSW

3600 San Clemente B3600 N Capital of

Tx Hwy3 Floors

90,267 SF100% Leased$40.55 Gross

51,534

FSW

3700 San Clemente3700 N Capital of

Tx Hwy5 Floors


$41.00 Gross

FSW


Tx Hwy5 Floors

251,146 SF100% Leased$38.93 Gross

52,934 SF

FSW

The Summit at Lantana - Bldg 300

7171 Southwest Pkwy4 Floors


$36.84 Gross

FSW



220,218 SF100% Leased$36.84 Gross

6,354 SF

NSW

The Terrace I2600 Via Fortuna


$38.40 Gross

NSW

The Terrace II2700 Via Fortuna

5 Floors114,635 SF


5,725 SF

9,716 SF

2,974 SF

4,356 SF

NSW

The Terrace VI2901 Via Fortuna


$43.12 Gross

1,239 SF

NSW

The Terrace VII2801 Via Fortuna


$43.09 Gross

5

4

3

2

1

5

4

3

2

1

4

3

2

1

4

3

2

1

4

3

2

1

5

4

3

2

1

5

4

3

2

1

5

4

3

2

1

5

4

3

2

1

5

4

3

2

1

4

3

2

1

4

3

2

1

3

2

1

4

3

2

1

5

4

3

2

1

3

2

1

5

4

3

2

1

5

4

3

2

1

3

2

1

3

2

1

3

2

1

3

2

1

5

4

3

2

1

5

4

3

2

1

5

4

3

2

1

4

3

2

1

5

4

3

2

1

6

5

4

3

2

1

6

5

4

3

2

1

7,704 SF

7,878 SF

NSW

Rollingwood Center II2500 Bee Caves Rd

2 Floors69,150 SF


3

2

1

NSW

Rollingwood Center I2500 Bee Caves Rd

4 Floors145,437 SF


4

3

2

1

37,416 SF

37,416 SF

27,276 SF

SUBLEASE SPACE

AVAILABLESPACE


Southwest Submarket AUSTIN, TXQ3 2015 CLASS A AVAILABILITY SUMMARY

FSW

Dimensional Place 1 6304 Bee Caves Rd

7 Floors 220,000 SF


FSW

Capital Ridge 320 Capital of Tx Hwy

7 floors216,511 SF


7

6

5

4

3

2

1

FSW

Dimensional Place 26300 Bee Caves Rd

5 Floors 156,000 SF


NSW

Four Barton Skyway1301 S Mopac Expy

5 Floors222,580 SF


NSW

Three Barton Skyway1221 S Mopac Expy

4 Floors173,302 SF


NSW

Two Barton Skyway1601 S Mopac Expy

4 Floors195,639 SF


3,240 SF

NSW

One Barton Skyway1501 S Mopac Expy


$38.90 Gross

5,988 SF 4,189 SF

NSW

Barton Oaks Plaza V901 S Mopac Expy


$39.80 Gross

NSW

Barton Oaks Plaza IV901 S Mopac Expy

5 Floors112,000 SF


7,237 SF

NSW

Barton Oaks Plaza III901 S Mopac Expy


$39.66 Gross

11,073 SF

NSW

Barton Oaks Plaza II901 S Mopac Expy


$40.62 Gross

4,901 SF

2,840 SF

NSW

Barton Oaks Plaza I901 S Mopac Expy

5 Floors99,404 SF


FSW

Encino Trace I5707 Southwest Pkwy

4 floors161,606 SF


42,671 SF

42,369 SF

16,782 SF

33,214 SF

FSW

Encino Trace II5707 Southwest Pkwy

4 floors158,137 SF15% Leased

$34.50 Gross

19,402 SF

FSW

Las Cimas II807 Las Cimas Pkwy


$39.83 Gross

1,135 SF

3,718 SF

FSW

Las Cimas III805 Las Cimas Pkwy


$39.93 Gross

2,587 SF 1,590 SF

FSW

Las Cimas IV900 S Capital of Tx Hwy


$40.97 Gross

3,700 SF

FSW

Las Cimas I804 Las Cimas Pkwy

3 Floors85,000 SF


NSW

Mira Vista2705 Bee Caves Rd

3 Floors121,147 SF


21,265 SF

21,262 SF

NSW

The Park on Barton Creek One


102,608 SF100% Leased$37.83 Gross

NSW

The Park on Barton Creek Two


102,587 SF100% Leased$37.83 Gross

9,980 SF

6,162 SF

FSW

5000 Plaza on the Lake5000 Plaza on the

Lake Dr.3 Floors


$41.07 Gross

8,936 SF

FSW

Plaza on the Lake I 5001 Plaza on the

Lake Dr.3 Floors


$40.34 Gross

FSW

Plaza on the Lake II4801 Plaza on the

Lake Dr.3 Floors

111,166 SF100% Leased$41.46 Gross

FSW

3600 San Clemente B3600 N Capital of

Tx Hwy3 Floors

90,267 SF100% Leased$40.55 Gross

51,534

FSW


Tx Hwy5 Floors


$41.00 Gross

FSW


Tx Hwy5 Floors

251,146 SF100% Leased$38.93 Gross

52,934 SF

FSW




$36.84 Gross

FSW



220,218 SF100% Leased$36.84 Gross

6,354 SF

NSW

The Terrace I2600 Via Fortuna


$38.40 Gross

NSW

The Terrace II2700 Via Fortuna

5 Floors114,635 SF


5,725 SF

9,716 SF

2,974 SF

4,356 SF

NSW

The Terrace VI2901 Via Fortuna


$43.12 Gross

1,239 SF

NSW

The Terrace VII2801 Via Fortuna


$43.09 Gross

5

4

3

2

1

5

4

3

2

1

4

3

2

1

4

3

2

1

4

3

2

1

5

4

3

2

1

5

4

3

2

1

5

4

3

2

1

5

4

3

2

1

5

4

3

2

1

4

3

2

1

4

3

2

1

3

2

1

4

3

2

1

5

4

3

2

1

3

2

1

5

4

3

2

1

5

4

3

2

1

3

2

1

3

2

1

3

2

1

3

2

1

5

4

3

2

1

5

4

3

2

1

5

4

3

2

1

4

3

2

1

5

4

3

2

1

6

5

4

3

2

1

6

5

4

3

2

1

7,704 SF

7,878 SF

NSW

Rollingwood Center II2500 Bee Caves Rd

2 Floors69,150 SF


3

2

1

NSW

Rollingwood Center I2500 Bee Caves Rd

4 Floors145,437 SF


4

3

2

1

37,416 SF

37,416 SF

27,276 SF

SUBLEASE SPACE

AVAILABLESPACE

40


THE APPENDIX

Long Term Performance of Submarkets 42

Long Term Performance: CBD vs. Suburban 43

Central Business District

Competitive Set Performance 44

Competitive Set Buildings 45

Northwest Submarket


Micromarket Performance 47

Competitive set Buildings by micromarket 50

Southwest Submarket


Micromarket Performance 54

Competitive set Buildings by micromarket 56

42

CITYWIDE AVAILABLE SF VS. VACANCY RATE CBD AVAILABLE SF VS. VACANCY RATE

NORTHWEST AVAILABLE SF VS. VACANCY RATE SOUTHWEST AVAILABLE SF VS. VACANCY RATE

LONG TERM PERFORMANCEOF SUBMARKETS

CITYWIDE AVERAGE CLASS A ASKING RATES ABSORPTION & OCCUPANCY RATE*Absorption includes sublease space.

Numbers based on CBRE statistics.

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

$50.00

Full

Serv

ice

Rent

al R

ate

CBD Northwest Southwest Citywide

0%

5%

10%

15%

20%

25%

30%

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Dir

ect &

Sub

leas

e Va

canc

y Ra

te

Avai

labi

lity

(SF)

Citywide Direct Availability Citywide Sublease Availability Citywide Vacancy Rate

65%

70%

75%

80%

85%

90%

95%

-2,000,000

-1,000,000

0

1,000,000

2,000,000

3,000,000

4,000,000

Dir

ect &

Sub

leas

e O

ccup

ancy

Rat

e

Year

Ove

r Ye

ar D

irec

t & S

uble

ase

Abso

rptio

n (S

F)

CBD Northwest Southwest Citywide Occupancy Rate

0%

6%

12%

18%

24%

30%

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Dir

ect &

Sub

leas

e Va

canc

y Ra

te

Avai

labi

lity

(SF)

CBD Direct Availability CBD Sublease Availability CBD Vacancy Rate Citywide Vacancy Rate

0%

6%

12%

18%

24%

30%

36%

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

Dir

ect &

Sub

leas

e Va

canc

y Ra

te

Avai

labi

lity

(SF)

Northwest Direct Availability Northwest Sublease Availability

Northwest Vacancy Rate Citywide Vacancy Rate

0%

6%

12%

18%

24%

30%

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Dir

ect &

Sub

leas

e Va

canc

y Ra

te

Avai

labi

lity

(SF)

Southwest Direct Availability Southwest Sublease Availability

Southwest Vacancy Rate Citywide Vacancy Rate


AVERAGE CLASS A ASKING RATES DIRECT & SUBLEASE VACANCY RATES

DIRECT & SUBLEASE AVAILABILITY SF UNDER CONSTRUCTION

LONG TERM PERFORMANCECBD VS. SUBURBANNumbers based on CBRE statistics.

0%

5%

10%

15%

20%

25%

30%

Title

CBD Vacancy Rate Suburban Vacancy Rate Citywide Vacancy Rate

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

Area

Und

er C

onst

ruct

ion

(SF)

CBD Northwest Southwest

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

$50.00

Full

Serv

ice

Rent

al R

ate

CBD Suburban Citywide

0%

5%

10%

15%

20%

25%

30%

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Dir

ect &

Sub

leas

e Va

canc

y Ra

te

Dir

ect &

Sub

leas

e Av

aila

bilit

y (S

F)

CBD Suburban Citywide Vacancy Rate

44

CENTRAL BUSINESS DISTRICTCOMPETITIVE SET PERFORMANCE


VACANCY VS. RENTAL RATES

CBD COMPETITIVE SET

Quarter Net Rentable Area

Direct Available SF

Sublease Available SF

Net Absorption*

Direct & Sublease Vacancy Rate

Avg. Class A Full Service Rental Rate

2013 Q4 5,636,079 690,237 17,977 (2,302) 12.57% $43.51

2014 Q1 5,637,136 618,961 4,210 86,100 11.05% $44.03

2014 Q2 5,637,136 576,465 25,189 21,517 10.67% $44.81

2014 Q3 5,827,916 483,868 81,356 227,210 9.70% $45.13

2014 Q4 5,827,916 503,540 69,160 (7,476) 9.83% $46.49

2015 Q1 6,344,401 421,858 55,200 612,127 7.52% $47.28

2015 Q2 6,466,952 479,092 40,409 80,108 8.03% $47.74

2015 Q3 6,466,952 370,193 38,822 110,486 6.32% $48.70

0%

2%

4%

6%

8%

10%

12%

14%

16%

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

Vaca

ncy

Rate

Avai

labi

lity

(SF)


86%

87%

88%

89%

90%

91%

92%

93%

94%

(100,000)

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

Occ

upan

cy R

ate

Abso

rptio

n (S

F)


5%

7%

9%

11%

13%

15%

$43.00

$44.00

$45.00

$46.00

$47.00

$48.00

$49.00

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

Vaca

ncy

Rate

Rent

al R

ate



Building Name Net Rentable Area

Direct Available SF


Asking Rental Rate

Estimated OpEx

100 Congress 411,536 28,001 ↑ 0 ↓ $37.00 ↑ $18.65 ↑

300 West 6th 454,225 1,421 ↓ 7,081 ↑ $36.00 ↑ $18.42

301 Congress 418,338 48,345 ↓ 0 $33.50 ↑ $17.95

400 West 15th 281,196 8,627 ↓ 17,218 $24.50 $15.92 ↑

501 Congress 122,551 18,922 ↓ 0 $32.00 $15.23

515 Congress 258,176 9,522 ↓ 1,455 ↓ $32.00 $15.95

600 Congress Ave. 503,951 29,676 ↓ 0 $33.00 $15.80

816 Congress 434,081 16,096 ↓ 0 $29.00 ↑ $16.59

Austin Centre 326,335 17,794 ↑ 6,576 ↑ $28.00 ↑ $15.88

Capitol Center 164,044 10,540 ↑ 5,559 $28.00 ↑ $17.08

Capitol Tower 172,837 0 0 $29.00 ↑ $14.67

Chase Tower 389,503 16,711 ↑ 0 $31.00 $17.90

Colorado Tower 373,334 0 ↓ 0 $34.00 $14.49

Frost Bank Tower 535,078 8,881 ↓ 0 $38.00 ↑ $19.25

IBC Bank Plaza 194,749 0 ↓ 0 $30.00 $13.60

Lavaca Plaza 118,635 0 ↓ 0 $29.50 $17.54

Littlefield Building 109,779 30,424 933 ↓ $29.00 $14.32

One Congress Plaza 518,385 72,848 0 ↓ $30.00 $16.69

San Jacinto Center 406,279 40,207 ↓ 0 $33.00 ↑ $17.15

Scarbrough Building 130,789 12,178 ↑ 0 ↓ $31.00 ↑ $12.75

Seaholm 143,151 0 0 $28.00 $12.00

CBD COMPETITIVE SET BUILDINGS

46

NORTHWEST SUBMARKETCOMPETITIVE SET PERFORMANCE




Direct Available SF


Net Absorption*



2013 Q4 12,293,184 1,114,662 127,432 30,812 10.10% $30.54

2014 Q1 12,293,184 1,050,027 135,810 56,257 9.65% $31.21

2014 Q2 12,242,690 1,030,332 246,257 (141,246) 10.43% $31.61

2014 Q3 12,389,252 911,833 321,739 189,579 9.96% $32.12

2014 Q4 12,845,611 1,197,426 320,587 171,918 11.82% $32.93

2015 Q1 12,931,909 992,203 292,334 319,774 9.93% $33.39

2015 Q2 13,120,924 897,208 284,035 292,309 9.00% $33.83

2015 Q3 13,310,232 1,129,335 287,248 (46,032) 10.64% $33.55

NORTHWEST COMPETITIVE SET

*Absorption includes sublease space.

0%

2%

4%

6%

8%

10%

12%

14%

16%

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

Vaca

ncy

Rate

Avai

labi

lity

(SF)


87%

88%

89%

90%

91%

92%

93%

(200,000)

(100,000)

0

100,000

200,000

300,000

400,000

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3O

ccup

ancy

Rat

e

Abso

rptio

n (S

F)


0%

2%

4%

6%

8%

10%

12%

14%

$28.00

$29.00

$30.00

$31.00

$32.00

$33.00

$34.00

$35.00

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

Vaca

ncy

Rate

Rent

al R

ate



ARBORETUM/DOMAINMICROMARKET PERFORMANCE


Direct Available SF


Net Absorption*



2013 Q4 6,106,452 433,941 35,988 166 7.70% $32.00

2014 Q1 6,106,452 433,079 55,206 (18,356) 8.00% $32.55

2014 Q2 6,106,452 476,360 109,332 (97,407) 9.59% $33.04

2014 Q3 6,253,014 401,651 157,535 173,068 8.94% $33.66

2014 Q4 6,474,987 445,544 121,157 214,458 8.75% $34.38

2015 Q1 6,553,774 447,850 71,595 126,043 7.93% $34.46

2015 Q2 6,742,789 389,248 63,891 255,321 6.72% $34.77

2015 Q3 6,719,697 407,169 76,078 (53,200) 7.19% $34.38

ARBORETUM/DOMAIN COMPETITIVE SET



*Absorption includes sublease space.

0%

2%

4%

6%

8%

10%

12%

14%

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

Vaca

ncy

Rate

Avai

labi

lity

(SF)


0%

2%

4%

6%

8%

10%

12%

14%

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

Vaca

ncy

Rate

Avai

labi

lity

(SF)


6.0%

6.5%

7.0%

7.5%

8.0%

8.5%

9.0%

9.5%

10.0%

$31.00

$31.50

$32.00

$32.50

$33.00

$33.50

$34.00

$34.50

$35.00

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

Vaca

ncy

Rate

Rent

al R

ate


48

SHEPHERD MOUNTAIN/2222MICROMARKET PERFORMANCE



SHEPHERD MOUNTAIN/2222 COMPETITIVE SET


Direct Available SF


Net Absorption*



2013 Q4 2,453,857 274,295 40,399 (2,379) 12.82% $30.16

2014 Q1 2,453,857 276,447 29,559 8,688 12.47% $31.43

2014 Q2 2,453,857 241,923 46,956 17,127 11.77% $31.95

2014 Q3 2,453,857 211,437 92,007 (14,565) 12.37% $32.28

2014 Q4 2,688,442 389,788 127,233 21,008 19.23% $33.10

2015 Q1 2,690,750 207,238 179,538 132,553 14.37% $34.17

2015 Q2 2,690,750 181,807 152,245 52,724 12.41% $34.45

2015 Q3 2,690,750 193,874 135,899 4,279 12.26% $34.55*Absorption includes sublease space.

0%

4%

8%

12%

16%

20%

24%

0

100,000

200,000

300,000

400,000

500,000

600,000

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

Vaca

ncy

Rate

Avai

labi

lity

(SF)


75%

77%

79%

81%

83%

85%

87%

89%

91%

93%

(40,000)

(20,000)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

Occ

upan

cy R

ate

Abso

rptio

n (S

F)


0%

3%

6%

9%

12%

15%

18%

21%

24%

$27.00

$28.00

$29.00

$30.00

$31.00

$32.00

$33.00

$34.00

$35.00

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

Vaca

ncy

Rate

Rent

al R

ate



FAR NORTHWESTMICROMARKET PERFORMANCEFAR NORTHWEST COMPETITIVE SET




Direct Available SF


Net Absorption*



2013 Q4 3,732,875 406,426 51,045 33,025 12.26% $28.41

2014 Q1 3,732,875 340,501 51,045 65,925 10.49% $28.88

2014 Q2 3,682,381 312,049 89,969 (60,966) 10.92% $29.02

2014 Q3 3,682,381 298,745 72,197 31,076 10.07% $29.40

2014 Q4 3,682,182 362,094 72,197 (63,548) 11.79% $30.26

2015 Q1 3,687,385 337,115 41,201 61,178 10.26% $30.93

2015 Q2 3,687,385 326,153 67,899 (15,736) 10.69% $31.66


0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

Vaca

ncy

Rate

Avai

labi

lity

(SF)


80%

82%

84%

86%

88%

90%

92%

94%

96%

(80,000)

(60,000)

(40,000)

(20,000)

0

20,000

40,000

60,000

80,000

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

Occ

upan

cy R

ate

Abso

rptio

n (S

F)


0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

$26.00

$27.00

$28.00

$29.00

$30.00

$31.00

$32.00

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

Vaca

ncy

Rate

Rent

al R

ate


50

ARBORETUM/DOMAIN MICROMARKET COMPETITIVE SET BUILDINGS


Direct Available SF


Asking Rental Rate

Estimated OpEx

3307 Northland 98,888 5,653 ↓ 0 $16.50 $10.24

9500 Arboretum 182,331 0 18,319 $22.00 $13.00

Arboretum Atrium 90,280 2,515 0 $21.00 $14.27

Arboretum Plaza One 146,347 0 0 $27.00 ↑ $14.23

Arboretum Plaza Two 98,828 0 0 $27.00 ↑ $14.23

Arboretum Point 150,033 0 0 $23.00 $13.44

Atrium Office Centre 119,709 40,364 ↓ 0 $17.50 $7.89 ↓

Austin Oaks 445,240 13,254 ↓ 3,981 ↑ $18.00 $10.90

Balcones Centre 74,876 3,919 0 $24.00 $9.86

Braker Pointe I 77,454 15,370 ↓ 0 $21.00 $13.16

Braker Pointe II 103,114 1,953 ↑ 8,721 ↓ $21.00 $12.89

Braker Pointe III 195,230 0 0 $25.00 ↑ $12.84

The Campus at Arboretum 1 60,059 11,590 0 $22.00 $13.78

The Campus at Arboretum 2 33,135 5,891 ↑ 0 $22.00 $13.85

The Campus at Arboretum 3 32,765 0 0 $22.00 $14.53



Colina West 69,299 0 0 $19.75 $10.71

Domain 2 143,331 0 0 $29.00 ↓ $11.00

Domain 3 179,006 0 20,816 $25.50 $10.34

Domain 4 152,012 0 0 $24.00 $11.16

Domain 7 221,973 31,000 ↓ 0 $28.00 ↑ $11.33

Domain Gateway 173,962 0 0 $21.00 $14.95

Great Hills Corporate Center I 59,228 2,935 ↑ 0 $17.50 ↓ $10.95

Great Hills Corporate Center II 60,429 0 0 $17.50 ↓ $10.95

Great Hills Corporate Center III 56,422 13,899 ↓ 0 $17.50 ↓ $10.95

Great Hills Plaza 139,252 18,743 ↑ 0 $20.00 $11.23

Greystone Plaza 78,248 8,427 ↓ 0 $17.00 ↓ $12.63

Heritage Plaza 74,736 11,798 ↑ 0 $28.00 $11.29

Kaleido I & II 73,149 8,680 ↑ 0 $16.00 ↓ $10.20 ↑

Lakeview Plaza 120,956 6,266 0 $20.00 $10.73

Northpoint Centre I & II 151,126 13,890 ↑ 0 $22.00 $11.22

Offices at the Domain Bldg 1 92,955 7,428 ↑ 0 $26.50 $14.75

Offices at the Domain Bldg 2 75,509 0 0 $26.50 $13.59

One Far West Plaza 70,642 8,173 ↑ 0 $17.00 ↓ $12.03 ↓

Park North I & II 133,568 4,924 ↓ 0 $18.00 $11.83 ↑

Plaza 7000 155,076 24,405 ↑ 0 $23.50 $12.92 ↑

Prominent Pointe I 150,376 24,342 ↓ 0 $24.50 $13.65

Prominent Pointe II 102,567 0 13,112 ↑ $24.50 $14.70

Quarry Lake Business Center 117,512 5,048 0 $20.00 $11.08

Quarry Oaks I 165,435 7,155 0 $24.00 $11.82

Quarry Oaks II 126,000 0 0 $25.00 $11.48

Reunion Park 118,142 14,631 0 $19.50 $11.16

Stone Creek I 76,860 0 0 $22.00 $0.00

Stone Creek II 162,723 6,687 0 $22.00 $12.60

Stone Creek Park 77,185 0 0 $20.00 $13.45

Stonebridge Plaza I 193,200 3,794 ↑ 0 $26.00 $14.40



Direct Available SF


Asking Rental Rate

Estimated OpEx

Stonebridge Plaza II 192,864 0 0 $26.00 $13.98

Stratum Executive Center Bldg A 61,000 8,428 ↑ 5,429 $20.00 $12.00

Stratum Executive Center Bldg B 61,000 0 ↓ 5,700 ↑ $20.00 $12.00

Stratum Executive Center Bldg C 61,000 12,344 0 $20.00 $12.00

Stratum Executive Center Bldg D 61,000 0 0 $20.00 $12.00

The Park at 8300 N. MoPac 93,317 6,911 0 $23.00 ↑ $13.40

UFCU Plaza 246,869 25,161 0 $20.00 $12.15

Westech 360 Bldgs 1-4 175,529 15,709 ↓ 0 $20.00 $11.93

Westpark Office 1-4 97,034 3,850 ↓ 0 $28.50 ↑ $9.66


Direct Available SF


Asking Rental Rate

Estimated OpEx

Bridgepoint Square 1 84,692 6,636 ↓ 0 $23.00 $12.43

Bridgepoint Square 2 92,459 12,412 ↓ 0 $23.00 $12.43

Bridgepoint Square 3 78,352 0 0 $23.00 $12.43

Bridgepoint Square 4 109,175 0 0 $23.00 $12.43

Bridgepoint Square 5 76,793 0 ↓ 0 $23.00 $12.43

Bridgepointe Plaza I 105,333 0 0 $23.50 ↑ $12.81

Bridgepointe Plaza II 72,640 5,016 ↓ 0 $23.50 ↑ $12.81

Champion Office Park I & II 230,000 0 0 $26.50 $11.00

Four Points Centre I & II 192,396 0 0 $23.50 $12.62

Ladera Bend 1 56,466 0 0 $21.50 $16.34

Ladera Bend 2 45,732 2,900 0 $21.50 $13.88

Ladera Bend 3 56,196 0 56,196 $21.50 $13.83

Lakewood Center I 47,389 0 ↓ 45,020 $22.00 ↑ $13.20

Lakewood Center II 44,611 0 13,206 $22.00 ↑ $13.20

Lakewood in the Park B 102,086 11,998 0 $19.50 $9.60

Lakewood in the Park C 78,596 12,808 ↑ 0 $19.50 $11.80

Millennium Building 125,612 0 0 $22.00 $11.94

Park Centre Bldg 1 89,822 10,079 ↓ 0 $18.00 $11.75

Park Centre Bldg 2 35,095 18,730 ↑ 0 $18.00 $11.75

Park Centre Bldg 3 78,270 57,562 ↑ 0 $18.00 $11.75

Reserve at Bull Creek A 43,782 7,622 0 $18.00 $12.28

Reserve at Bull Creek B 43,713 0 0 $20.00 $10.86

Reserve at Bull Creek C 43,695 0 0 $20.00 $11.44

River Place Corporate Park I 76,529 0 0 $21.00 $12.79

River Place Corporate Park II 114,491 9,987 0 $21.00 $12.43

River Place Corporate Park III 113,465 4,339 0 $21.00 $12.50

River Place Corporate Park IV 87,639 8,601 ↑ 0 $21.00 $13.53

River Place Corporate Park V 67,601 13,246 ↑ 0 $21.00 $12.01

River Place Corporate Park VI 62,037 0 0 $21.00 $13.33

River Place Corporate Park VII 69,119 0 21,477 ↓ $21.00 $14.15

Shepherd Mountain Plaza 100,937 0 0 ↓ $33.00 $11.28

Stone Cliff 66,027 11,938 ↑ 0 $18.00 $12.73

SHEPHERD MOUNTAIN/2222 MICROMARKET COMPETITIVE SET BUILDINGS

52


Direct Available SF


Asking Rental Rate

Estimated OpEx

Amber Oaks A 78,164 0 10,872 ↑ $19.00 $10.94

Amber Oaks B 44,184 0 0 $19.00 $8.30

Amber Oaks C 44,184 0 0 $19.00 $8.60

Amber Oaks D 28,733 0 0 $19.00 $10.45

Amber Oaks E 63,111 0 0 $19.00 $8.03

Amber Oaks F 78,034 78,034 0 $19.00 $10.09

Amber Oaks G 106,455 9,923 14,730 $19.00 $10.01

Amber Oaks H 101,045 0 0 $19.00 $10.93

Amber Oaks I 50,313 10,828 0 $19.00 $11.63

Amber Oaks J 50,111 6,245 33,147 $19.00 $10.90

Aspen Lake One 204,940 0 0 $18.50 $13.26

Crossings at Lakeline I 114,726 4,078 0 $21.50 ↑ $10.98

Crossings at Lakeline II 117,548 6,879 ↓ 0 $21.50 ↑ $11.10

Paloma Ridge A 106,200 106,200 0 $18.00 $9.50

Paloma Ridge B 106,200 106,200 0 $18.00 $9.50

Parmer Business Park A, B, C 123,731 0 0 $18.50 $5.60

Parmer Business Park D, E, F 107,283 0 0 $18.50 $5.60

Pecan Park I 136,444 0 ↓ 0 $21.50 $10.72 ↑

Pecan Park II 136,245 0 0 $19.50 $9.45

Research Park Place 7 125,701 3,790 0 ↓ $22.00 $11.55

Research Park Place 8 125,700 33,518 0 $22.00 $11.55

Research Park Plaza I 136,068 11,747 ↓ 0 $21.50 ↓ $13.96

Research Park Plaza II 135,813 0 0 $21.50 ↓ $13.96

Research Park Plaza III 173,530 0 0 $23.00 $13.08

Research Park Plaza IV 184,114 11,342 ↑ 0 $23.00 $13.08

Riata Corporate Park Bldg 2 63,372 16,821 0 $22.00 $12.33

Riata Corporate Park Bldg 3 63,849 0 ↓ 0 $22.00 $12.33

Riata Corporate Park Bldg 4 93,737 93,737 0 $22.00 $12.33

Riata Corporate Park Bldg 5 93,828 23,783 ↑ 0 $22.00 $12.33

Riata Corporate Park Bldg 6 93,835 0 0 $22.00 $12.33


Riata Corporate Park Bldg 8 93,718 0 16,522 $22.00 $12.33


Riata Crossing Bldg 1 81,775 0 0 $19.00 $8.00




Tower of the Hills/Tower Point 175,802 5,167 ↓ 0 $20.00 ↑ $12.60

FAR NORTHWEST MICROMARKET COMPETITIVE SET BUILDINGS


SOUTHWESTCOMPETITIVE SET PERFORMANCESOUTHWEST COMPETITIVE SET




Direct Available SF


Net Absorption*



2013 Q4 7,108,930 552,899 97,634 51,204 9.15% $33.82

2014 Q1 7,102,874 480,177 202,095 (37,795) 9.61% $34.71

2014 Q2 7,102,874 387,913 208,978 85,381 8.40% $35.06

2014 Q3 7,102,874 294,587 169,604 132,700 6.54% $35.47

2014 Q4 7,102,547 386,333 182,477 (104,946) 8.01% $36.07

2015 Q1 7,100,750 399,919 188,613 (21,519) 8.29% $36.98

2015 Q2 7,782,464 428,605 213,812 627,829 8.25% $37.55


0%

2%

4%

6%

8%

10%

12%

14%

16%

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

Vaca

ncy

Rate

Avai

labi

lity

(SF)


87%

88%

89%

90%

91%

92%

93%

94%

95%

96%

(200,000)

(100,000)

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3O

ccup

ancy

Rat

e

Abso

rptio

n (S

F)


5%

6%

7%

8%

9%

10%

$33.00

$34.00

$35.00

$36.00

$37.00

$38.00

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

Vaca

ncy

Rate

Rent

al R

ate


54

NEAR SOUTHWESTMICROMARKET PERFORMANCE



NEAR SOUTHWEST COMPETITIVE SET


Direct Available SF


Net Absorption*



2013 Q4 2,718,656 228,673 41,301 13,994 9.93% $35.99

2014 Q1 2,712,851 209,356 143,888 (89,075) 13.02% $37.18

2014 Q2 2,712,851 191,624 165,931 (4,311) 13.18% $37.40

2014 Q3 2,712,851 174,207 126,557 56,791 11.09% $37.59

2014 Q4 2,713,137 158,703 124,248 18,099 10.43% $38.03

2015 Q1 2,711,340 143,863 125,110 12,181 9.92% $39.26

2015 Q2 2,925,937 110,815 101,710 271,045 7.26% $39.49

2015 Q3 2,925,937 105,532 175,528 (68,535) 9.61% $39.84*Absorption includes sublease space.

0%

2%

4%

6%

8%

10%

12%

14%

16%

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

Vaca

ncy

Rate

Avai

labi

lity

(SF)


85%

86%

87%

88%

89%

90%

91%

92%

93%

94%

(150,000)

(100,000)

(50,000)

0

50,000

100,000

150,000

200,000

250,000

300,000

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3O

ccup

ancy

Rat

e

Abso

rptio

n (S

F)


5%

7%

9%

11%

13%

15%

17%

$34.00

$35.00

$36.00

$37.00

$38.00

$39.00

$40.00

$41.00

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

Vaca

ncy

Rate

Rent

al R

ate



FAR SOUTHWESTMICROMARKET PERFORMANCEFAR SOUTHWEST COMPETITIVE SET




Direct Available SF


Net Absorption*



2013 Q4 4,390,274 324,226 56,333 37,210 8.67% $32.48

2014 Q1 4,390,023 270,821 58,207 51,280 7.49% $33.19

2014 Q2 4,390,023 196,289 43,047 89,692 5.45% $33.62

2014 Q3 4,390,023 120,380 43,047 75,909 3.72% $34.16

2014 Q4 4,389,410 227,630 58,229 (123,045) 6.51% $34.86

2015 Q1 4,389,410 256,056 63,503 (33,700) 7.28% $35.57

2015 Q2 4,856,527 317,790 112,102 356,784 8.85% $36.39


0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

Vaca

ncy

Rate

Avai

labi

lity

(SF)


88%

90%

92%

94%

96%

98%

100%

(200,000)

(100,000)

0

100,000

200,000

300,000

400,000

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

Occ

upan

cy R

ate

Abso

rptio

n (S

F)


0%

3%

6%

9%

12%

15%

$32.00

$33.00

$34.00

$35.00

$36.00

$37.00

2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

Vaca

ncy

Rate

Rent

al R

ate


56

NEAR SOUTHWEST MICROMARKET COMPETITIVE SET BUILDINGS


Direct Available SF


Asking Rental Rate

Estimated OpEx

Barton Creek Plaza I 72,974 17,132 ↓ 0 $22.00 $12.53

Barton Creek Plaza II 64,718 8,466 ↑ 0 $23.00 ↑ $11.69

Barton Creek Plaza III 64,842 6,413 0 $23.00 ↑ $11.83

Barton Oaks Plaza I 99,404 7,741 ↑ 0 $27.00 ↑ $14.68

Barton Oaks Plaza II 116,368 11,073 0 $26.25 ↑ $14.37

Barton Oaks Plaza III 121,467 7,237 ↑ 0 ↓ $26.25 ↑ $13.41

Barton Oaks Plaza IV 112,000 0 0 $40.00 $13.86

Barton Oaks Plaza V 119,549 5,988 ↑ 4,189 $26.00 $13.80

Barton Skyway I 195,324 3,240 ↓ 0 ↓ $25.50 $13.40

Barton Skyway II 195,639 0 ↓ 0 $25.50 $13.79

Barton Skyway III 173,302 0 ↓ 0 $25.50 $13.70

Barton Skyway IV 222,580 0 0 $25.50 $12.86

Centre I 39,903 0 ↓ 0 $21.00 ↑ $12.50 ↑

Centre II 54,610 0 ↓ 0 $19.50 $11.82

Mira Vista 121,147 0 0 $27.00 $14.09

Overlook at Gaines Ranch 50,725 0 0 $26.50 $14.17

Rollingwood Center I & II 214,587 7,878 109,812 ↑ $29.00 ↑ $12.00

Spyglass Point 58,576 0 0 $21.00 $13.45

The Park on Barton Creek 1 102,608 0 42,527 ↓ $24.50 $13.33

The Park on Barton Creek 2 102,587 0 0 $24.50 $13.33

The Terrace 1 115,460 6,354 0 $23.50 $14.90

The Terrace 2 114,635 0 ↓ 0 $23.50 $15.03

The Terrace 6 196,717 22,771 ↑ 0 $27.50 ↑ $15.62

The Terrace 7 196,215 1,239 ↑ 19,000 $27.50 ↑ $15.59


FAR SOUTHWEST MICROMARKET COMPETITIVE SET BUILDINGS


Direct Available SF


Asking Rental Rate

Estimated OpEx

3700 San Clemente 249,870 51,934 ↓ 0 $29.50 ↑ $11.50

3900 San Clemente 251,146 0 0 $25.00 $13.93

5000 Plaza on the Lake 118,063 6,162 ↑ 9,980 $26.50 ↑ $14.57

7000 West at Lantana 1 & 2 136,075 0 0 $24.50 $12.13

Canyon at Wild Basin 74,580 12,579 ↑ 1,283 $24.00 ↑ $11.60

Capital Ridge 216,511 0 0 $30.00 $10.56

Cielo Center 270,711 16,483 ↑ 3,371 $19.50 $12.55

CityView 1 46,702 0 ↓ 0 $20.50 $10.55

CityView 2 47,809 0 0 $20.50 $10.55

CityView 3 48,044 6,794 ↑ 0 $20.50 $10.55

CityView Center 137,763 0 24,478 ↓ $25.00 ↑ $11.79

Crystal Mountain 1, 2 & 3 61,762 7,920 ↓ 1,590 $25.00 ↓ $9.41

Dimensional Place I 220,000 0 0 $24.00 $12.42

Dimensional Place II 156,000 0 0 $24.00 $12.42

Encino Trace I 161,606 0 0 $23.50 $11.00

Escalade Bldg A 56,701 9,440 0 $19.50 ↑ $11.92

Escalade Bldg B 56,701 2,083 ↓ 0 $19.50 ↑ $11.92

Lake Pointe II 42,933 0 ↓ 0 $24.00 ↓ $8.42 ↑

Las Cimas I 85,000 3,700 0 $24.50 $14.18

Las Cimas II 156,069 19,402 ↑ 0 ↓ $26.00 $13.83

Las Cimas III 157,418 1,135 ↑ 3,718 $26.00 $13.93

Las Cimas IV 138,008 2,587 ↑ 1,590 ↓ $26.50 $14.47

Lost Creek Point 73,026 5,308 0 $18.00 ↓ $12.35 ↓

Parkway at Oak Hill I & II 145,475 1,779 0 $23.50 $13.07

Plaza 290 63,163 3,825 ↑ 4,002 $18.00 ↑ $11.37 ↑

Plaza on the Lake I 122,530 8,936 0 $26.50 ↑ $13.84

Plaza on the Lake II 111,166 0 0 $26.50 ↑ $14.96

Rialto I 77,872 7,302 ↑ 0 $23.00 ↑ $11.63

Rialto II 77,508 1,588 ↓ 36,421 $23.00 ↑ $11.63

San Clemente Bldg B 90,267 0 0 $26.50 $14.05

The Enclave 44,704 0 0 $17.00 $8.37

The Summit 1-5 865,832 52,939 0 $25.00 $11.84

Travis Oaks 123,434 7,128 ↑ 2,384 $22.50 $12.09

Vista Ridge I 75,131 10,233 ↓ 0 $17.50 $11.33

Westlake Place 61,184 8,836 ↑ 0 $19.50 ↓ $10.50

Wild Basin Atrium Bldg A 67,500 0 0 $16.50 $9.31

Wild Basin I 60,498 0 0 $19.00 $11.40

Wild Basin II 74,626 0 0 $19.00 $11.37

58

YOURNOTES:


1717 W. SIXTH STREET, SUITE 400

AUSTIN, TEXAS 78703

512.684.3800

AQUILACOMMERCIAL.COM

Austin, Texas Skyline; Photo courtesy of Katie Haugland

Documents

Austin Market Report Q3 2015