Austin-Q3 2016

2016 Q3 Market Trends © 2016 by Xceligent, Inc. All Rights Reserved

OFFICE MARKET REPORT

Austin

3rd Quarter 2016


2

Table of Contents/Methodology of Tracked Set 2

Office Market Map 3

Austin Office Overview 4-5

Statistics by Market 6

Vacancy Rates & Asking Rates 7-8

Leasing & Absorption 9

New Construction 10

Office Advisory Board Members 11

Xceligent Austin Team 12

The Austin tracked set consists of an inventory of buildings considered to be competitive within the brokerage community. All buildings within the competitive tracked set have been reviewed and verified by members of the Advisory Boards for each market area.

Xceligent is a leading provider of verified commercial real estate information which assists real estate

professionals, appraisers, owners, investors and developers that make strategic decisions to lease, sell,

buy and develop commercial properties.

Table of Contents/

Methodology of Tracked Set

Inventory The total square feet of all existing single and multi tenant office buildings greater than 10,000 SF, excluding medical,

government and owner occupied buildings.

Class A Most prestigious buildings competing for premier office users with rents above the market average. Buildings have high

quality standard finishes, state of the art systems, exceptional accessibility and a definite market presence.

Class B Buildings competing for a wide range of office users with average market rents. Building finishes are fair to good for the

area and systems are adequate, but the property does not compete with Class A product.

Class C Buildings competing for office users requiring functional office space at rents below the market average for the area.

Direct Vacant (sf) The total of the vacant square footage in a building that is being marketed by an agent representing the landlord.

Net Absorption The net change in physically occupied space from quarter to quarter, expressed in square feet.

Sublease (sf) Space that is offered for lease by a current tenant, or his agent, within a property. Whether the tenant is paying rent or

not, the space is considered vacant only if it is unoccupied.

Total Available (sf) All of the available leasable space within a building, whether it is occupied or vacant, for direct lease or sublease space.

Total Vacant (sf) The total of all of the vacant square footage within a building, including both direct and sublease space.

Weighted Average

Direct Lease Rate

The weighted average of all direct asking lease rates expressed as a full service/gross rental rate and weighted on total

direct available square feet. Non-full service rates (such as NNN) have been grossed up to reflect a full service/gross rate.


3

Office Market Map


4

Overview

Austin Office Overview

According to the Texas Workforce Commission, the unemployment rate in the Austin-Round Rock MSA has remained somewhat steady over the past 12 months at 3.4% in August 2015, to 3.5% in August 2016. The Austin-Round Rock statistical area job creation totaled 30,900 non-farm related jobs over the past year.

The Austin office metro absorbed almost 800,000 square feet (sf) during the 3Q 2016. Major occupiers of space included Apple, Trend Micro, Integra, Electronic Arts, and Tableau Software.

Due to continued positive activity, the vacancy rate has fallen over a full percentage point in the past 12 months, from 9.7% in 3Q 2015 to 8.6% at the close of 3Q 2016.

The South West submarket recorded the most absorption for third quarter with over 330,000 sf absorbed.

# of Bldgs Inventory (sf) Total Available (sf) Total Vacant (sf) Total Vacancy Rate

(%) Quarterly Net Absorption (sf)

YTD Net Absorption (sf)

A 224 28,041,927 3,913,437 2,386,439 8.5% 841,515 1,698,696

B 428 18,736,147 2,600,283 1,692,536 9.0% 20,783 85,851

C 81 1,944,946 252,100 122,478 6.3% -18,094 -14,882

Overall 733 48,723,020 6,765,820 4,201,453 8.6% 844,204 1,769,665

# of Bldgs Inventory (sf) Direct Available (sf) Direct Vacant (sf) Direct Vacancy Rate

(%) Direct Quarterly Absorption (sf)

YTD Direct Net Absorption (sf)

A 224 28,041,927 3,022,491 2,202,707 7.9% 770,942 1,704,312

B 428 18,736,147 2,318,464 1,617,538 8.6% 28,045 109,032

C 81 1,944,946 217,617 121,104 6.2% -16,720 -13,508

Overall 733 48,723,020 5,558,572 3,941,349 8.1% 782,267 1,799,836

# of Bldgs Inventory (sf) Sublease Available

(sf) Sublease Vacant (sf)

Sublease Vacancy Rate (%)

Sublease Quarterly Absorption (sf)

YTD Sublease Net Absorption (sf)

A 224 28,041,927 890,946 183,732 0.7% 70,573 -5,616

B 428 18,736,147 281,819 74,998 0.4% -7,262 -23,181

C 81 1,944,946 34,483 1,374 0.1% -1,374 -1,374

Overall 733 48,723,020 1,207,248 260,104 0.5% 61,937 -30,171


5

Austin Office Overview

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016

Historical Vacancy Rate & Net Absorption

3.0%

6.0%

9.0%

12.0%

15.0%

3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016

Historical Vacancy Rates by Class

A B C

(250,000)

(50,000)

150,000

350,000

550,000

750,000

950,000

3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016

Historical Net Absorption by Class

A B C


6

Statistics by Market

# of Bldgs Inventory (sf) Total Vacant (sf) Sublease Vacant

(sf) Total Vacancy Rate

(%) Total Qtrly Net Absorption (sf)

YTD Total Net Absorption (sf)

CBD 66 9,807,739 490,991 40,984 5.0% 182,567 330,833

A 25 6,728,092 329,382 37,832 4.9% 186,506 293,131

B 25 2,499,528 118,583 3,152 4.7% 3,762 25,691

C 16 580,119 43,026 - 7.4% -7,701 12,011

Central 44 2,668,082 97,731 151 3.7% 75,836 248,939

A 8 1,044,878 7,108 - 0.7% 5,065 187,795

B 32 1,446,176 65,741 151 4.5% 70,771 83,806

C 4 177,028 24,882 - 14.1% 0 -22,662

Far Northwest 70 3,991,725 410,875 13,189 10.3% 83,106 169,577

A 20 2,259,512 56,101 2,189 2.5% 56,374 134,797

B 28 1,625,940 354,774 11,000 21.8% 24,849 32,897

C 22 106,273 - - 0.0% 1,883 1,883

North 32 1,621,663 163,527 - 10.1% 19,687 75,705

A 2 207,046 13,852 - 6.7% 1,523 13,420

B 28 1,379,858 145,478 - 10.5% 18,164 66,482

C 2 34,759 4,197 - 12.1% 0 -4,197

Northeast 30 2,418,574 217,957 1,470 9.0% 4,454 181,588

A 4 610,325 105,560 - 17.3% -105 126,762

B 22 1,646,907 100,200 1,470 6.1% 4,559 50,095

C 4 161,342 12,197 - 7.6% 0 4,731

Northwest 215 14,479,445 1,743,877 118,756 12.0% 80,384 291,075

A 93 9,390,414 1,127,525 62,855 12.0% 160,908 461,948

B 116 4,858,738 603,290 54,527 12.4% -70,793 -163,750

C 6 230,293 13,062 1,374 5.7% -9,731 -7,123

Round Rock 45 1,204,846 83,267 - 6.9% 7,036 113,964

A 2 288,731 33,979 - 11.8% 0 87,631

B 41 886,003 49,288 - 5.6% 7,036 26,333

C 2 30,112 - - 0.0% 0 0

South 34 1,751,405 64,922 - 3.7% -18,166 -17,059

A 3 398,122 23,778 - 6.0% -10,629 -16,039

B 18 977,571 39,027 - 4.0% -7,571 326

C 13 375,712 2,117 - 0.6% 34 -1,346

Southeast 17 1,056,597 63,639 - 6.0% 70,350 152,514

A 5 392,391 57,284 - 14.6% 73,149 142,274

B 10 578,259 2,352 - 0.4% -1,352 9,943

C 2 85,947 4,003 - 4.7% -1,447 297

Southwest 179 9,706,444 863,425 85,554 8.9% 338,950 222,529

A 61 6,705,916 630,628 80,856 9.4% 368,724 266,977

B 108 2,837,167 213,803 4,698 7.5% -28,642 -45,972

C 10 163,361 18,994 - 11.6% -1,132 1,524

Overall 732 48,706,520 4,200,211 260,104 8.6% 844,204 1,769,665


7

Vacancy Rates & Asking Rates

Vacancy Rate % Weighted Asking Rate (FSG)

3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016

CBD 7.5% 6.6% 5.9% 5.0% 5.0% $43.18 $42.98 $53.51 $45.06 $45.13

A 8.3% 6.8% 5.9% 5.1% 4.9% $47.66 $47.65 $61.00 $49.46 $50.90

B 5.1% 5.3% 4.8% 4.5% 4.7% $37.11 $35.45 $40.37 $40.42 $40.10

C 9.5% 9.5% 11.2% 6.1% 7.4% $27.05 $27.09 $27.41 $28.34 $22.26

Central 12.0% 10.1% 12.1% 7.9% 3.7% $27.66 $29.14 $24.69 $25.61 $28.42

A 11.6% 11.5% 15.6% 4.7% 0.7% $40.24 $42.80 $41.79 $43.38 $46.00

B 13.5% 10.3% 9.3% 9.4% 4.5% $22.12 $22.43 $23.40 $24.70 $25.62

C 1.3% 1.3% 14.1% 14.1% 14.1% $17.59 $17.59 $23.51 $23.51 $23.51

Far Northwest 14.4% 15.2% 15.0% 13.0% 10.3% $30.26 $30.73 $31.10 $31.39 $32.60

A 11.5% 9.5% 9.6% 6.1% 2.5% $32.76 $33.16 $33.74 $34.19 $34.91

B 19.4% 23.8% 23.4% 23.3% 21.8% $28.84 $29.06 $29.83 $30.07 $29.18

C - 1.8% 1.8% 1.8% - - $21.00 $21.00 $20.61 -

North 12.9% 13.9% 13.0% 10.0% 10.1% $23.01 $22.48 $22.54 $23.24 $22.46

A 13.2% 13.2% 7.4% 7.4% 6.7% $31.67 $41.99 $41.99 $31.66 $28.36

B 13.2% 14.3% 13.8% 10.4% 10.5% $21.09 $21.54 $22.31 $22.54 $22.10

C - - 12.1% 12.1% 12.1% - - $12.00 $12.00 $21.49

Northeast 8.4% 15.6% 9.6% 9.2% 9.0% $22.42 $22.02 $25.87 $26.64 $25.74

B 9.9% 9.8% 7.2% 6.4% 6.1% $22.72 $22.31 $22.77 $23.72 $23.25

C 10.5% 10.5% 7.6% 7.6% 7.6% $19.63 $19.63 $19.10 $19.10 $22.87

Northwest 10.7% 9.7% 9.6% 12.6% 12.0% $31.83 $32.11 $33.81 $33.04 $33.63

A 12.8% 11.4% 10.7% 13.8% 12.0% $33.84 $34.17 $35.55 $34.42 $35.33

B 7.2% 6.7% 7.5% 11.0% 12.4% $27.89 $27.83 $29.19 $29.42 $30.92

C 5.0% 7.4% 8.0% 1.4% 5.7% $30.52 $24.46 $24.19 $26.95 $35.47

Round Rock 9.5% 9.0% 9.8% 7.5% 6.9% $25.35 $25.10 $25.75 $26.38 $27.41

A 12.4% 12.4% 12.4% 11.8% 11.8% - - - - $31.68

B 9.2% 8.5% 9.6% 6.4% 5.6% $25.36 $25.10 $25.75 $26.38 $26.71

C 2.0% - - - - $23.99 - - - -

South 2.4% 2.6% 3.2% 2.7% 3.7% $28.06 $29.66 $28.72 $29.42 $28.65

A 0.4% 1.9% 1.5% 3.3% 6.0% $31.98 $32.90 $32.90 $32.58 $34.20

B 3.3% 3.8% 4.2% 3.2% 4.0% $28.11 $29.00 $28.87 $29.61 $28.00

C 2.2% 0.2% 2.5% 0.6% 0.6% $20.79 $23.11 $21.28 $20.46 $20.66

Southeast 8.4% 8.0% 16.1% 8.7% 6.0% $23.75 $24.25 $23.75 $22.01 $26.70

A 22.7% 23.3% 45.4% 24.4% 14.6% $25.13 $25.16 $23.96 $23.10 $30.32

B 2.5% 2.0% 0.2% 0.2% 0.4% $16.10 $16.32 $9.00 $18.03 $18.03

C 6.9% 5.0% 5.0% 3.0% 4.7% $21.47 $23.38 $23.38 $23.38 $20.00

Southwest 9.2% 13.9% 16.6% 12.5% 8.9% $35.66 $36.43 $36.39 $36.53 $37.10

A 10.7% 17.7% 20.3% 14.4% 9.4% $37.98 $37.78 $38.50 $38.62 $39.24

B 5.9% 5.3% 8.2% 7.9% 7.5% $29.34 $31.88 $31.08 $31.71 $31.67

C 13.2% 12.6% 10.0% 10.9% 11.6% $26.57 $26.72 $27.83 $28.12 $28.08

Overall 9.7% 10.5% 10.9% 10.0% 8.6% $33.02 $33.58 $36.13 $34.09 $34.56


8


6.0%

10.9% 10.4%

12.0%

7.5%

9.5%

2.9%

12.2%

9.1%

13.6%

8.5%

CBD Northwest Northeast North Hays County Southeast South Southwest Central Far Northwest Round Rock

Vacancy Rate by Market

$44.38

$27.83

$20.45 $20.70

$39.56

$24.14 $28.24

$31.74

$24.83

$18.44 $16.35

CBD Northwest Northeast North Hays County Southeast South Southwest Central FarNorthwest

Round Rock

Weighted Average Asking Rates by Market (FSG)

$16.00

$9.00 $5.04

$36.00

$30.00 $28.00 $28.79

$23.12 $23.98

$4.00

$9.00

$14.00

$19.00

$24.00

$29.00

$34.00

$39.00

A B C

Asking Lease Rate Range by Class (FSG)


9

Leasing & Absorption

Largest Absorption Changes

Property Name Occupied or Vacated (sf)

Tenant Name Submarket Building Class

Capital Ridge Bldgs A&B 238,000 Apple Southwest A

Domain 5 74,805 Trend Micro Northwest A

The Offices At Braker Center Bldg I 56,995 Integra Central B

7700 W Parmer Ln Bldg C 49,443 Electronic Arts expansion Far Northwest A

One American Center 39,616 Tableau Software expansion CBD A

Paloma Ridge Building B 22,285 CalAtlantic Homes Northwest A

Bridgepoint Square IV -10,987 NY Life Northwest A

Frost Bank Tower -12,500 Astrotech CBD A

Frost Bank Tower -14,328 Texas American Resources CBD A

Echelon III -28,077 St. Edward's University Northwest B

Nine One Six -55,216 Apple Southwest B

Top Transactions

Property Name Sale Price Sold (sf) Buyer Seller Market Building

Class Seaholm Power Plant $125,000,000 150,000 Clarion Partners Seaholm Power LLC CBD A

Stonebridge Plaza I $122,872,039 193,237 SM Stonebridge Plaza LLC Hart Stonebridge I LLC Northwest A

Champion Bldg I $66,029,664 117,500 Menlo Equities Endeavor Real Estate Group Northwest A

Aspen Lake Two $27,500,000 128,700 AG Two Aspen LLC CREF Aspen Lake Building II LLC Northwest A

Amber Oaks Bldg G $18,999,072 106,455 TLO TX3 Investment LLC NW Austin Office Partners LLC Far Northwest

A

Atrium Office Centre $18,525,000 119,858 8701 Mopac Atrium LLC HUB Properties Trust Northwest B

Gateway Center $4,829,892 30,786 ACT Balcones Properties LLC Cheryl L Ogle Northwest B


10

New Construction

712,711

292,000

87,894

33,634

90,500

426,021

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

CBD North Northeast Round Rock South Southwest

Current New Construction by Market


INDUSTRIAL MARKET REPORT

Austin

3rd Quarter 2016


2

Table of Contents/Methodology of Tracked Set 2

Industrial Market Map 3

Austin Industrial Overview 4-5

Statistics by Market 6

Vacancy Rates & Asking Rates 7-8

Leasing & Absorption 9-10

New Construction 11

Industrial Advisory Board Members 12

Xceligent Austin Team 13

The Austin tracked set consists of an inventory of buildings considered to be competitive within the brokerage community. All buildings within the competitive tracked set have been reviewed and verified by members of the Advisory Boards for each market area.

Xceligent is a leading provider of verified commercial real estate information which assists real estate

professionals, appraisers, owners, investors and developers that make strategic decisions to lease, sell,

buy and develop commercial properties.

Table of Contents/

Methodology of Tracked Set

Inventory The total square feet (sf) of all existing single and multi tenant industrial properties greater

than 10,000 sf.

Total Available sf All of the available leasable space within a building, whether it is occupied or vacant, for direct

lease or sublease space. Space can be available but not vacant, for example, if the landlord, or

his agent, is marketing space that will be coming available at a future date because a tenant is

planning to move.

Total Vacant sf The total of all of the vacant square footage within a building, including both direct and

sublease space.

Direct Vacant sf The total of the vacant square footage in a building that is being marketed by an agent

representing the landlord.

Sublease sf Space that is offered for lease by a current tenant, or his agent, within a property. Whether the

tenant is paying rent or not, the space is considered vacant only if it is unoccupied.

Net Absorption The net change in physically occupied space from quarter to quarter, expressed in square feet.

Weighted Average Direct

Lease Rate The weighted average of all direct asking lease rates expressed as a NNN rental rate and

weighted on total direct available square feet.


3

Industrial Market Map


4

Overview

Austin Industrial Overview

According to the Texas Workforce Commission, the unemployment rate in the Austin-Round Rock MSA has remained somewhat steady over the past 12 months at 3.4% in August 2015, to 3.5% in August 2016. The Austin-Round Rock statistical area job creation totaled 30,900 non-farm related jobs over the past year.

The Austin industrial metro absorbed over 115,000 square feet (sf) during the 3Q 2016. Major occupiers of space included On-X Technologies, Wonderwall Studios, Walmart, and Capital Vending.

Due to continued positive absorption, the vacancy rate has dropped almost 2 percentage points, from 7.0 % in 3Q 2015 to 5.3% at the close of 3Q 2016.

The North East submarket recorded the most absorption for third quarter with over 130,000 sf absorbed.

# of Bldgs Inventory (sf) Total Available (sf) Total Vacant (sf) Total Vacancy Rate

(%) Total Quarterly Net

Absorption (sf) YTD Total Net Absorption (sf)

Flex/R&D 466 19,875,241 2,337,676 1,266,802 6.4% 51,807 409,002

Warehouse - Distribution

597 26,652,974 2,860,533 1,394,122 5.2% 64,684 480,481

Overall 1,063 46,528,215 5,198,209 2,660,924 5.7% 116,491 889,483

# of Bldgs Inventory (sf) Sum of Direct Available (sf)

Direct Vacant (sf) Direct Vacancy Rate

(%) Direct Quarterly

Net Absorption (sf) YTD Direct Net Absorption (sf)

Flex/R&D 466 19,875,241 1,834,940 1,107,175 5.6% 51,807 384,327


597 26,652,974 2,483,686 1,219,042 4.6% 81,913 454,918

Overall 1,063 46,528,215 4,318,626 2,326,217 5.0% 133,720 839,245

# of Bldgs Inventory (sf) Available Sublease

(sf) Sublease Vacant (sf)

Sublease Vacancy Rate (%)

Sublease Quarterly Absorption (sf)

YTD Sublease Net Absoprtion (sf)

Flex/R&D 466 19,875,241 502,736 159,627 0.8% 0 24,675


597 26,652,974 376,847 175,080 0.7% -17,229 25,563

Overall 1,063 46,528,215 879,583 334,707 0.7% -17,229 50,238


5

Austin Industrial Overview

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

-

100,000

200,000

300,000

400,000

500,000

600,000

3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016

Historical Vacancy Rate & Net Absorption

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016

Historical Vacancy Rates by Use

Flex/R&D Warehouse - Distribution

(80,000)

20,000

120,000

220,000

320,000

420,000

3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016

Historical Net Absorption by Use



6

Statistics by Market

# of Bldgs Inventory (sf) Total Vacant (sf) Sublease Vacant

(sf) Vacancy Rate

(%) Total Quarterly Absorption (sf)

YTD Total Net Absorption (sf)

Buda-Kyle 2 194,574 194,574 194,574 100.0% 0 0

Flex/R&D 1 127,574 127,574 127,574 100.0% 0 0

Warehouse - Distribution 1 67,000 67,000 67,000 100.0% 0 0

Central Austin 256 10,119,346 308,881 9,433 3.1% -13,729 167,958

Flex/R&D 129 4,322,368 234,391 4,033 5.4% -12,137 81,752

Warehouse - Distribution 127 5,796,978 74,490 5,400 1.3% -1,592 86,206

East Austin 113 2,773,424 332,628 16,520 12.0% -39,337 -33,192

Flex/R&D 48 1,429,019 239,807 16,520 16.8% 29,484 35,629

Warehouse - Distribution 65 1,344,405 92,821 - 6.9% -68,821 -68,821

North 69 4,554,193 282,370 - 6.2% -368 140,334

Flex/R&D 26 1,259,061 10,712 - 0.9% 0 40,659

Warehouse - Distribution 43 3,295,132 271,658 - 8.2% -368 99,675

Northeast Austin 140 8,315,547 534,497 4,000 6.4% 134,386 347,877

Flex/R&D 61 3,160,911 151,590 4,000 4.8% -5,108 78,404

Warehouse - Distribution 79 5,154,636 382,907 - 7.4% 139,494 269,473

Northwest Austin 76 3,899,750 87,573 - 2.2% -4,730 1,997

Flex/R&D 26 2,737,463 58,636 - 2.1% 0 4,174

Warehouse - Distribution 50 1,162,287 28,937 - 2.5% -4,730 -2,177

Round Rock 74 2,573,303 125,418 - 4.9% 39,710 10,027

Flex/R&D 35 1,308,797 120,618 - 9.2% 4,500 8,832

Warehouse - Distribution 39 1,264,506 4,800 - 0.4% 35,210 1,195

Southeast Austin 237 11,703,907 724,080 87,180 6.2% 22,155 216,082

Flex/R&D 94 4,329,508 289,417 - 6.7% 35,068 105,789

Warehouse - Distribution 143 7,374,399 434,663 87,180 5.9% -12,913 110,293

Southwest Austin 91 2,130,723 48,903 23,000 2.3% -21,596 38,400

Flex/R&D 43 1,082,092 12,057 7,500 1.1% 0 53,763

Warehouse - Distribution 48 1,048,631 36,846 15,500 3.5% -21,596 -15,363

CBD 1 11,776 - - 0.0% 0 0

Flex/R&D 1 11,776 - - 0.0% 0 0

West 1 11,872 - - 0.0% 0 0

Flex/R&D 1 11,872 - - 0.0% 0 0

Overall 1,060 46,288,415 2,638,924 334,707 5.7% 116,491 889,483


7


Vacancy Rate % Weighted Asking Rate

3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016

Central Austin 6.3% 6.9% 4.4% 3.1% 3.1% $1.01 $1.07 $1.03 $1.09 $1.06

Flex/R&D 6.7% 7.7% 6.3% 5.5% 5.4% $1.00 $1.06 $1.10 $1.17 $1.18


5.9% 6.4% 3.0% 1.3% 1.3% $1.04 $1.24 $0.81 $0.81 $0.71

East Austin 10.2% 9.1% 8.3% 8.9% 12.0% $0.91 $1.29 $1.34 $0.81 $0.66

Flex/R&D 16.0% 16.2% 14.7% 15.8% 16.8% $1.29 $1.29 $1.34 $0.81 $0.80


4.3% 1.8% 1.8% 1.8% 6.9% $0.75 - - - $0.55

North 8.4% 9.5% 9.5% 6.2% 6.2% $0.92 $0.92 $0.73 $1.25 $0.70

Flex/R&D 4.3% 4.8% 4.8% 0.9% 0.9% $0.92 $0.92 $0.73 $1.25 $1.03


10.0% 11.3% 11.3% 8.2% 8.2% - - - - $0.61

Northeast Austin 9.4% 9.1% 7.8% 6.3% 6.4% $0.61 $0.59 $0.93 $0.91 $0.96

Flex/R&D 8.9% 10.5% 7.1% 4.6% 4.8% $0.81 $0.68 $0.82 $0.72 $0.75


9.7% 8.2% 8.3% 7.4% 7.4% $0.54 $0.54 $1.27 $1.27 $1.00

Northwest Austin 2.0% 2.3% 1.7% 2.1% 2.2% $1.17 $0.88 $0.94 $0.95 $0.95

Flex/R&D 2.8% 2.3% 1.4% 2.1% 2.1% $1.18 $1.18 $1.25 $1.25 $1.25


0.1% 2.3% 2.2% 2.1% 2.5% $0.75 $0.44 $0.50 $0.57 $0.55

Round Rock 7.4% 5.3% 6.5% 6.4% 4.9% $0.83 $0.91 $0.87 $0.87 $0.92

Flex/R&D 10.5% 9.9% 9.6% 9.6% 9.2% $0.93 $0.93 $0.93 $0.93 $0.94


4.2% 0.5% 3.2% 3.2% 0.4% $0.61 $0.65 $0.72 $0.73 $0.84

Southeast Austin 6.8% 6.0% 7.1% 6.2% 6.2% $0.72 $0.71 $0.98 $0.99 $0.87

Flex/R&D 5.0% 3.9% 8.3% 7.5% 6.7% $0.99 $1.09 $1.11 $1.18 $1.08


7.9% 7.1% 6.4% 5.4% 5.9% $0.56 $0.50 $0.92 $0.91 $0.80

Southwest Austin 4.3% 4.1% 1.6% 1.3% 2.3% $0.90 $0.93 $0.74 $0.73 $0.75

Flex/R&D 4.5% 6.1% 1.1% 1.1% 1.1% $1.00 $1.01 $0.78 $0.77 $0.76


4.0% 2.0% 2.1% 1.5% 3.5% $0.76 $0.76 $0.67 $0.66 $0.71

Overall 7.0% 6.9% 6.2% 5.1% 5.3% $0.78 $0.79 $0.95 $0.96 $0.87


8


4.7%

2.7%

7.8%

2.1%

8.0%

6.5% 6.1%

9.7%

Central Austin SouthwestAustin

NortheastAustin

NorthwestAustin

North SoutheastAustin

Round Rock East Austin

Vacancy Rate by Submarket

$1.06 $0.80

$0.60

$0.97 $0.71

$0.86 $0.90 $0.67

$2.08

$0.58 $0.60

Weighted Average Asking Rates by Submarket

$0.50 $0.35

$2.25 $2.08

$1.00

$0.68

$-

$0.50

$1.00

$1.50

$2.00

$2.50


Asking Lease Rate Range by Type (NNN)


9

Leasing & Absorption

Largest Absorption Changes

Property Name Occupied or Vacated (sf)

Tenant Name Submarket Specific Use

Harris Ridge Business Center Bldg 5 81,000 Undisclosed Northeast Warehouse - Distribution

Anderson Lane Business Park Bldg A 35,000 On-X Technologies East Flex/R&D

SouthPark Commerce Center Phase I Building 2 32,317 Wonderwall Studio Southeast Flex/R&D

224 Investment Loop 28,219 Walmart Round Rock Warehouse - Distribution

Harris Ridge Business Center Bldg 5 18,000 Undisclosed Northeast Warehouse - Distribution

Capital Business Park 12,658 Capital Vending South East Warehouse - Distribution

Promontory Point Bldg A -10,352 Gas Pedal Northeast Flex/R&D

Kramer 4 -11,481 NIMBOXX INC Central Flex/R&D

8700 Lava Hill Rd -11,700 Tri-Recycling Inc. Southeast Warehouse - Distribution

Rutland Distribution Bldg 2 -11,700 Pacific Shore Stones Central Warehouse - Distribution

Global Business Park Bldg C -61,444 FEMA East Warehouse - Distribution

Top Transactions

Property Name Sale Price Sold (sf) Buyer Seller Submarket Specific Use

Tech Ridge Bldg 4 $65,625,000 199,625 TLF Logistics II Tech Ridge Portfolio LLC

Fund IX Tech Ridge 810 West Howard LLC

North East Warehouse - Distribution

Global Business Park, Buildings A, B & C $19,838,975 269,415 ATCAP Partners Gateway McKinley Inc East Warehouse - Distribution

Tuscany Distribution Center 1 and 2 $11,626,769 142,270 ATCAP Partners Gateway Frontier Properties Inc

North East Warehouse - Distribution

Mopac Industrial Park $5,437,500 69,322 Jeffrey Glenn Ezell et al Coors of Austin Inc South East Flex/R&D

Metric Center A and B $4,935,272 48,700 ATCAP Partners Gateway Central Properties Inc

Central Flex/R&D

Capital Business Park $3,832,281 52,707 James C Daywood Michael L Brandt South East Warehouse - Distribution


10

New Construction

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Northeast Austin Southeast Austin Southwest Austin

Current New Construction by Submarket

Documents

Austin-Q3 2016