The CoStar
Office Report
THIRD QUARTER 2011
The Dallas/Ft Worth Office Market
Third Quarter 2011
Dallas/Ft Worth Office Market
COPYRIGHT
The CoStar Office Report
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© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
TABLE OF CONTENTS
Table of Contents
Methodology
Terms & Definitions
CoStar Markets & Submarkets
The Dallas/Ft Worth Office Market
Market Highlights
Metro Market Overview
Historical Analysis of Market Highlights by Class
Vacancy Analysis
Historical Vacancy Analysis by Class
Absorption Analysis
Historical Analysis of Absorption by Class
Buildings Contributing to Net Absorption by Class
Inventory Analysis
Historical Analysis of Inventory by Class
New Development Activity
Year-to-Date Delivered Projects
Under Construction Projects
Proposed Projects
Tenant Analysis
Employment Numbers
Tenant Analysis by Size, Lease Expiration, Industry and SF/Employee
Sales Activity Analysis
Analysis of Volume, Average Price/SF and Average Cap Rate
Select Building Sales
Select Same Building Sales
Figures at a Glance
Figures at a Glance by Class and Market
Figures at a Glance by Class and Submarket
Historical Figures at a Glance by Class
Individual Dallas/Ft Worth Office Markets
Individual Market Overviews
Overall Historical Analysis of Market Highlights
© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
METHODOLOGY
Methodology
The CoStar Office Report calculates office statistics using CoStar Group's base of existing,
under construction, and under renovation office buildings in each given metropolitan area.
Included are office, office condominium, office loft, office medical, and government office
buildings, in building sizes of 15,000 square feet and larger, and not including owner-
occupied buildings. CoStar Group's national database includes approximately 42.9 billion
square feet of coverage in 2 million properties. All rental rates reported in the CoStar
Office Report have been converted to a Full Service equivalent rental rate.
© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
TERMS & DEFINITIONS
Terms & Definitions
Availability Rate: The ratio of available space to management and tenants. They are less appealing to
total rentable space, calculated by dividing the total tenants than Class A properties, and may be deficient
available square feet by the total rentable square feet. in a number of respects including floor plans,
condition and facilities. They lack prestige and must
Available Space: The total amount of space that is depend chiefly on a lower price to attract tenants and
currently being marketed as available for lease in a investors.
given time period. It includes any space that is
available, regardless of whether the space is vacant, Class C: A classification used to describe buildings
occupied, available for sublease, or available at a that generally qualify as no-frills, older buildings that
future date. offer basic space and command lower rents or sale
prices compared to other buildings in the same market.
Build-to-Suit: A term describing property that was Such buildings typically have below-average
developed specifically for a certain tenant to occupy, maintenance and management, and could have mixed
with structural features, systems, or improvement or low tenant prestige, inferior elevators, and/or
work designed for the needs of that tenant. A build- mechanical/electrical systems. These buildings lack
to-suit can be either leased or owned by the tenant, prestige and must depend chiefly on a lower price to
with a leased build-to-suit usually having a long term attract tenants and investors.
lease on the space.
Construction Starts: Buildings that began
Buyer: The individual, group, company, or entity that construction during a specific period of time. (See
has purchased a commercial real estate asset. definition of Deliveries.)
Cap Rate: Short for capitalization rate. The Cap Contiguous Space: Space within a building that is,
Rate is a calculation that reflects the relationship or is able to be joined together into a single space.
between one year's net operating income and the
current market value of a particular property. The cap Deliveries: Buildings that complete construction
rate is calculated by dividing the annual net operating during a specified period of time. In order for space to
income by the sales price (or asking sales price). be considered delivered, a certificate of occupancy
must have been issued for the property.
CBD: Abbreviation for Central Business District. (See
definition of Central Business District.) Delivery Date: The date a building completes
construction and receives a certificate of occupancy.
Central Business District: The designations of
Central Business District (CBD) and Suburban refer to Developer: The company, entity or individual that
a particular geographic area within a metropolitan transforms raw land to improved property by use of
statistical area (MSA) describing the level of real estate labor, capital and entrepreneurial efforts.
development found there. The CBD is characterized
by a high density, well organized core within the Direct Space: Space that is being offered for lease
largest city of a given MSA. directly from the landlord or owner of a building, as
opposed to space being offered in a building by
Class A: A classification used to describe buildings another tenant (or broker of a tenant) trying to sublet
that generally qualify as extremely desirable a space that has already been leased.
investment-grade properties and command the highest
rents or sale prices compared to other buildings in the Existing Inventory: The square footage of buildings
same market. Such buildings are well located and that have received a certificate of occupancy and are
provide efficient tenant layouts as well as high quality, able to be occupied by tenants. It does not include
and in some buildings, one-of-a-kind floor plans. They space in buildings that are either planned, under
can be an architectural or historical landmark designed construction or under renovation.
by prominent architects. These buildings contain a
modern mechanical system, and have above-average Flex Building: A type of building designed to be
maintenance and management as well as the best versatile, which may be used in combination with
quality materials and workmanship in their trim and office (corporate headquarters), research and
interior fittings. They are generally the most attractive development, quasi-retail sales, and including but not
and eagerly sought by investors willing to pay a limited to industrial, warehouse, and distribution uses.
premium for quality. A typical flex building will be one or two stories with
at least half of the rentable area being used as office
Class B: A classification used to describe buildings space, have ceiling heights of 18 feet or less, and have
that generally qualify as a more speculative investment, some type of drive in door, even though the door may
and as such, command lower rents or sale prices be glassed in or sealed off.
compared to Class A properties. Such buildings offer
utilitarian space without special attractions, and have Full Service Rental Rate: Rental rates that include
ordinary design, if new or fairly new; good to excellent all operating expenses such as utilities, electricity,
design if an older non-landmark building. These janitorial services, taxes and insurance.
buildings typically have average to good maintenance,
© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
TERMS & DEFINITIONS
Terms & Definitions
Gross Absorption: The total change in occupied by the tenant and may include janitorial costs,
space over a given period of time, counting space that electricity, utilities, taxes, insurance and other related
is occupied but not space that is vacated by tenants. costs.
Gross absorption differs from leasing activity, which is
the sum of all space leased over a certain period of New Space: Sometimes called first generation space,
time. refers to space that has never been occupied and/or
leased by a tenant.
Growth in Inventory: The change in size of the
existing square footage in a given area over a given Occupied Space: Space that is physically occupied
period of time, generally due to the construction of by a tenant. It does not include leased space that is not
new buildings. currently occupied by a tenant.
Industrial Building: A type of building adapted for Office Building: A type of commercial building used
such uses as the assemblage, processing, and/or exclusively or primarily for office use (business), as
manufacturing of products from raw materials or opposed to manufacturing, warehousing, or other uses.
fabricated parts. Additional uses include warehousing, Office buildings may sometimes have other associated
distribution, and maintenance facilities. The primary uses within part of the building, i.e., retail sales,
purpose of the space is for storing, producing, financial, or restaurant, usually on the ground floor.
assembling, or distributing product.
Owner: The company, entity, or individual that holds
Landlord Rep: (Landlord Representative) In a title on a given building or property.
typical lease transaction between an owner/landlord
and tenant, the broker that represents the interests of Planned/Proposed: The status of a building that
the owner/landlord is referred to as the Landlord Rep. has been announced for future development but not
yet started construction.
Leased Space: All the space that has a financial
lease obligation. It includes all leased space, regardless Pre-leased Space: The amount of space in a
of whether the space is currently occupied by a tenant. building that has been leased prior to its construction
Leased space also includes space being offered for completion date, or certificate of occupancy date.
sublease.
Price Per Square Foot: Calculated by dividing the
Leasing Activity: The volume of square footage that price of a building (either sales price or asking sales
is committed to and signed under a lease obligation for price) by the rentable building area (RBA).
a specific building or market in a given period of time.
It includes direct leases, subleases and renewals of Property Manager: The company and/or person
existing leases. It also includes any pre-leasing activity responsible for the day-to-day operations of a building,
in under construction, planned buildings or under such as cleaning, trash removal, etc. The property
renovation buildings. manager also makes sure that the various systems
within the building, such as the elevators, HVAC, and
Market: Geographic boundaries that serve to electrical systems, are functioning properly.
delineate core areas that are competitive with each
other and constitute a generally accepted primary Quoted Rental Rate: The asking rate per square
competitive set of areas. Markets are building-type foot for a particular building or unit of space by a
specific, and are non-overlapping contiguous broker or property owner. Quoted rental rates may
geographic designations having a cumulative sum that differ from the actual rates paid by tenants following
matches the boundaries of the entire Region (see the negotiation of all terms and conditions in a specific
definition of Region). Markets can be further lease.
subdivided into Submarkets. (See definition of
Submarkets.) RBA: Abbreviation for Rentable Building Area. (See
definition of Rentable Building Area.)
Multi-Tenant: Buildings that house more than one
tenant at a given time. Usually, multi-tenant buildings Region: Core areas containing a large population
were designed and built to accommodate many nucleus, that together with adjacent communities have
different floor plans and designs for different tenant a high degree of economic and social integration.
needs. (See Tenancy) Regions are further divided into market areas, called
Markets. (See definition of Markets.)
Net Absorption: The net change in occupied space
over a given period of time, calculated by summing all Relet Space: Sometimes called second generation or
the positive changes in occupancy (move ins) and direct space, refers to existing space that has previously
subtracting all the negative changes in occupancy been occupied by another tenant.
(move outs).
Rentable Building Area: The total square footage
Net Rental Rate: A rental rate that excludes certain of a building that can be occupied by, or assigned to a
expenses that a tenant could incur in occupying office tenant for the purpose of determining a tenant's rental
space. Such expenses are expected to be paid directly obligation. Generally RBA includes a percentage of
© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
TERMS & DEFINITIONS
Terms & Definitions
common areas including all hallways, main lobbies, inventory. Under construction space generally is not
bathrooms, and telephone closets. included in vacancy calculations.
Rental Rates: The annual costs of occupancy for a Vacant Space: Space that is not currently occupied
particular space quoted on a per square foot basis. by a tenant, regardless of any lease obligation that may
be on the space. Vacant space could be space that is
Sales Price: The total dollar amount paid for a either available or not available. For example,
particular property at a particular point in time. sublease space that is currently being paid for by a
tenant but not occupied by that tenant, would be
Sales Volume: The sum of sales prices for a given considered vacant space. Likewise, space that has been
group of buildings in a given time period. leased but not yet occupied because of finish work
being done, would also be considered vacant space.
Seller: The individual, group, company, or entity that
sells a particular commercial real estate asset. Weighted Average Rental Rate: Rental rates that
are calculated by factoring in, or weighting, the square
SF: Abbreviation for Square Feet. footage associated with each particular rental rate.
This has the effect of causing rental rates on larger
Single-Tenant: Buildings that are occupied, or spaces to affect the average more than that of smaller
intended to be occupied by a single tenant. (See spaces. The weighted average rental rate is calculated
definition of Tenancy.) by taking the ratio of the square footage associated
with each rental rate to the square footage associated
Sublease Space: Space that has been leased by a with all rental rates, multiplying the rental rate by that
tenant and is being offered for lease back to the market ratio, and then adding together all the resulting
by the tenant with the lease obligation. Sublease space numbers.
is sometimes referred to as sublet space.
Year Built: The year in which a building completed
Submarkets: Specific geographic boundaries that construction and was issued a certificate of occupancy.
serve to delineate a core group of buildings that are
competitive with each other and constitute a generally YTD: Abbreviation for Year-to-Date. Describes
accepted primary competitive set, or peer group. statistics that are cumulative from the beginning of a
Submarkets are building type specific (office, calendar year through whatever time period is being
industrial, retail, etc.), with distinct boundaries studied.
dependent on different factors relevant to each
building type. Submarkets are non-overlapping,
contiguous geographic designations having a
cumulative sum that matches the boundaries of the
Market they are located within. (See definition of
Market.)
Suburban: The Suburban and Central Business
District (CBD) designations refer to a particular
geographic area within a metropolitan statistical area
(MSA). Suburban is defined as including all office
inventory not located in the CBD (see definition of
CBD).
Tenancy: A term used to indicate whether or not a
building is occupied by multiple tenants (see Multi-
tenant) or a single tenant (see Single-tenant).
Tenant Rep: Tenant Rep stands for Tenant
Representative. In a typical lease transaction between
an owner/landlord and tenant, the broker that
represents the interests of the tenant is referred to as a
Tenant Rep.
Under Construction: The status of a building that
is in the process of being developed, assembled, built
or constructed. A building is considered to be under
construction after it has begun construction and until
it receives a certificate of occupancy.
Vacancy Rate: A measurement expressed as a
percentage of the total amount of physically vacant
space divided by the total amount of existing
© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
MARKETS & SUBMARKETS
CoStar Markets and Submarkets
In analyzing metropolitan areas in the U.S., CoStar has developed geographic designations to help group
properties together, called Regions, Markets and Submarkets. Regions are the equivalent of metropolitan areas, or
areas containing a large population nucleus, that together with adjacent communities have a high degree of
economic and social integration. Regions are then divided into Markets, which are core areas known to be
competitive with each other in terms of attracting and keeping tenants. Markets are then further subdivided into
smaller units called Submarkets, which serve to delineate a core group of buildings that are competitive with each
other and constitute a generally accepted competitive set, or peer group.
Markets Submarkets
Central Expressway
Dallas CBD Central Expressway
East Dallas
Dallas CBD
Far North Dallas
Ft Worth CBD Garland
Las Colinas Henderson County
LBJ Freeway Mesquite/Forney/Terrell
Lewisville/Denton Outlying Kaufman County
Mid-Cities Rockwall
Southeast Dallas
North Fort Worth White Rock
Frisco/The Colony
Northeast Ft Worth Quorum/Bent Tree
Preston Center Upper Tollway/West Plano
Richardson/Plano Ft Worth CBD
South Ft Worth DFW Freeport/Coppell
Office Ctr/West LBJ Ext
Southwest Dallas Urban Center/Wingren
Stemmons Freeway East LBJ Freeway
Uptown/Turtle Creek West LBJ Freeway
Denton
Lewisville
Outlying Denton County
Arlington/Mansfield
Grand Prairie
HEB/Midcities
South Irving
Westlake/Grapevine
Alliance
Northwest Ft Worth
Parker County
Wise County
East Northeast Ft Worth
Preston Center
Allen/McKinney
Hunt County
Outlying Collin County
Plano
Richardson
Hood County
Johnson County
Southeast Ft Worth
West Southwest Ft Worth
Ellis County
Southwest Dallas
Stemmons Freeway
Uptown/Turtle Creek
© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com
MarketHighlights
THIRD-QUARTER 2011
The Dallas/Ft Worth Office Market
Third Quarter 2011
Dallas/Ft Worth Office Market
OVERVIEW
Dallas/Ft Worth Highlights
Overview
The Dallas/Ft. Worth office market ended the third quarter
2011 with a vacancy rate of 20.9%. This vacancy rate
represented a (0.3) percentage point decrease over the previous
quarter, when the rate was 21.2%. This decrease in vacancy
rate occurred in a quarter where Dallas/Ft. Worth saw 769,842
square feet in positive net absorption and 58,026 square feet in
deliveries. Quoted rental rates ended third quarter 2011 at
$19.25 per square foot, up from $19.24 per square foot in the
second quarter 2011. At the end of third quarter 2011, there
was 723,543 square feet under construction in the Dallas/Ft.
Worth office market.
Class 'A' projects in Dallas/Ft. Worth reported a third Dallas/Ft. Worth Class 'C' projects recorded (13,293)
quarter 2011 vacancy rate of 21.1%, down from the 21.5% square feet of negative net absorption in third quarter 2011.
reported at the end of second quarter 2011. Net absorption The class 'C' vacancy rate was 16.3% at the end of third
within the class 'A' sector totaled positive 418,604 square feet quarter 2011, and average quoted rental rates were $14.77 per
for the quarter, and new deliveries totaled 0 square feet. square foot.
Quoted rental rates for available space within the class 'A'
sector averaged $22.04 at the end of the quarter, down from Vacancy
$22.23 in the second quarter 2011. There was 613,223 square The overall vacancy rate in the Dallas/Ft. Worth office
feet under construction at the end of third quarter 2011.
market ended third quarter 2011 at 20.9%, down from the
Class 'B' projects reported positive net absorption of previous quarter, when it was 21.2%. This (0.3) percentage
364,531 square feet and deliveries of 58,026 square feet in the point decrease from the prior quarter compares to a (0.8)
third quarter of 2011. As a result, the Dallas/Ft. Worth class 'B' percentage point decrease since the third quarter of 2010, when
vacancy rate decreased to 21.6% (from 21.8% at the end of the the vacancy rate was 21.7%.
second quarter 2011). Dallas/Ft. Worth class 'B' quoted rental
rates averaged $17.23, and there was a total of 110,320 square
feet under construction at the end of third quarter 2011.
Vacancy Rates by Class 2008-2011
Class A Class B Class C Total M arket
2 5%
20%
15%
10%
5%
0% 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q 2010 3q 2010 4q 2 0 11 1q 20112q 20113q
2008 1q
Source: CoSt ar Propert y®
© 2011 CoStar Realty Information The CoStar Office Report www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
OVERVIEW
At the end of the third quarter 2011 there was 51,776,488 Vacancy Comparison
square feet of vacant space in the Dallas/Ft. Worth office
market. In the second quarter of 2011, 52,488,304 square feet Dallas/Ft Worth U.S.
lay vacant, and in the third quarter of 2010, 53,979,479 was
vacant. 25.0%
20.0%
The (2,202,991) square foot decrease in vacant square 15.0%
footage from third quarter 2010 to third quarter 2011 10.0%
represents a -4% decrease in vacant space, while the (711,816)
square foot decrease in vacant space from second quarter 2011 5.0%
to third quarter 2011 represents a -1% decrease in vacant
square footage.
Tenants moving out of large blocks of space in 2011 0.0%
include: Blockbuster LLC moving out of 179,025 square feet at
1201 Elm St-Renaissance Tower; TM Advertising moving out 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011
of 130,482 square feet at 1717 Main St; and Computer 1q 2q 3q 4q 1q 2q 3q 4q 1q 2q 3q
Associates International moving out of 124,134 square feet at
5465 Legacy Dr. S ource:CoS t ar Propert y®
Tenants moving into large blocks of space in 2011 include: percentage points, while total vacant space in the market
Fossil moving into 535,771 square feet at 901 S Central Expy; decreased -2% (vacant space went down (418,604) square feet
Ericsson moving into 460,000 square feet at Lakeside Campus; during that time).
and American Home Mortgage moving into 137,992 square
feet at 16675 Addison Rd. Between third quarter 2010 and third quarter 2011, total
class 'A' vacancy in Dallas/Ft. Worth decreased (1,178,506)
square feet, or -4%, while the vacancy rate decreased (1.1)
percentage points.
The Dallas/Ft. Worth class 'A' sector reported a 21.1% The class 'B' sector of Dallas/Ft. Worth, with a third
vacancy rate at the end of third quarter 2011. There was quarter 2011 vacancy rate of 21.6%, saw vacancies fall in the
21,834,789 square feet of vacant space at the end of the quarter. quarter. The vacancy rate decreased of (0.2) percentage points
From the second quarter 2011 to the third quarter 2011, the from the second quarter of 2011, when the vacancy rate was
Dallas/Ft. Worth class 'A' vacancy rate decreased (0.4) 21.8%. Total vacant space decreased by (306,505) square feet
during that time, which corresponded to a -1% decrease in the
Absorption & Deliveries total amount of vacant space.
Net Absorption Deliveries In the third quarter 2011, Dallas/Ft. Worth class 'B'
vacancy rates were down (0.9) percentage points from a year
1,500 earlier, when the vacancy rate was 22.5%.
1,000 Dallas/Ft. Worth ended third quarter 2011 with a class 'C'
vacancy rate of 16.3%. The class 'C' vacancy rate was 16.2%
500 at the end of second quarter 2011 and 15.5% at the end of third
quarter 2010.
0
(500) As of third quarter 2011, the Dallas/Ft. Worth class 'C'
market contained 3,689,419 square feet of vacant space. A year
(1,000) earlier, there was 3,517,993 square feet of vacant space in the
market.
(1,500)
Absorption & Leasing Activity
2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011
1q 2q 3q 4q 1q 2q 3q 4q 1q 2q 3q
Sour ce: CoSt ar Proper t y®
© 2011 CoStar Realty Information The CoStar Office Report www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
OVERVIEW
Gross Absorption Class 'A' gross absorption for Dallas/Ft. Worth was
2,166,903 square feet in the third quarter of 2011. The
6,000 previous quarter saw 1,554,363 square feet of gross absorption.
A year earlier, in third quarter 2010, Dallas/Ft. Worth saw class
5,000 'A' gross absorption of 2,255,010 square feet.
4,000 Dallas/Ft. Worth saw 2,330,031 square feet of class 'A'
leasing activity in third quarter 2011, compared to 1,591,059
3,000 square feet in second quarter 2011 and 2,316,277 square feet in
third quarter of 2010.
2,000
The class 'B' market in Dallas/Ft. Worth saw positive net
1,000 absorption of 364,531 square feet in the third quarter 2011.
Gross absorption in that same time period was 2,588,596
0 square feet, while leasing activity was 1,711,248 square feet.
2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011
1q 2q 3q 4q 1q 2q 3q 4q 1q 2q 3q In the second quarter 2011, net absorption for Dallas/Ft.
Worth's class 'B' projects was positive 324,090 square feet, on
Sour ce: CoSt ar Proper t y® gross absorption of 2,148,005 square feet. Leasing activity
came in at 1,316,121 square feet during that time.
In the third quarter of 2011, the Dallas/Ft. Worth office
market had positive net absorption of 769,842 square feet. This The class 'C' market in Dallas/Ft. Worth reported negative
compares to negative net absorption of (71,012) square feet in net absorption of (13,293) square feet in the third quarter 2011.
the previous quarter, and positive 1,371,331 square feet in the Gross absorption was 169,193 square feet and leasing activity
third quarter of 2010. was 123,204 square feet in that same time period.
Gross absorption was 4,924,692 square feet in the Dallas/ CoStar defines net absorption as the net change in
Ft. Worth office market in third quarter 2011. In the previous occupied space over a given period of time. Gross absorption,
quarter, gross absorption was 3,887,743 square feet, and in the like net absorption, measures changes in occupancy, but only
same quarter a year ago, gross absorption was 5,178,595 counts the positive changes (the move-in's), not the negative
square feet. changes (the move-out's). Both net and gross absorption are
dependent on the move date of a transaction to determine
Leasing activity was 4,164,483 square feet in Dallas/Ft.
Worth in the third quarter of 2011. Leasing activity was Under Construction
3,024,884 square feet in the second quarter of 2011, and
3,745,443 square feet in the third quarter of 2010. 4,500
The largest lease signings occurring in 2011 included: the 4,000
535,771-square-foot lease signed by Fossil at 901 S Central
Expy in the Richardson/Plano market; the 460,000-square-foot 3,500
deal signed by Ericsson at Lakeside Campus in the Richardson/
Plano market; and the 255,103-square-foot lease signed by Pier 3,000
1 Imports, Inc. at Chesapeake Plaza in the South Ft Worth
market. 2,500
Dallas/Ft. Worth recorded positive 418,604 square feet of 2,000
class 'A' net absorption in the third quarter of 2011. This
compares to negative (346,421) square feet of net absorption in 1,500
the second quarter of 2011 and positive 698,024 square feet in
the third quarter of 2010. 1,000
500
0
2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011
1q 2q 3q 4q 1q 2q 3q 4q 1q 2q 3q
Sour ce: CoSt ar Proper t y®
© 2011 CoStar Realty Information The CoStar Office Report www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
OVERVIEW
activity. Leasing activity, by contrast, measures transactions Dallas/Ft. Worth. Rates stood at $19.24 per square foot at the
based on the sign date, regardless of when (or if) a particular end of the second quarter 2011, and ended third quarter 2011
space will become occupied. at $19.25 per square foot. At the end of third quarter 2010,
quoted rental rates were $19.33 per square foot.
New Construction Activity
The Dallas/Ft. Worth office market saw 58,026 square feet The third quarter 2011 saw quoted rental rates in Dallas/
Ft. Worth increase 0.1% over second quarter 2011 levels.
in new speculative projects deliver to the market in third quarter Additionally, third quarter 2011 rates were down 0.4% from
2011. This compares to a total of 131,290 square feet that was third quarter 2010 levels, and down 3.7% from third quarter
completed in the second quarter 2011. 2009 levels. Rates were down 7.2% from their levels three
years earlier, and up 2.2% from five years earlier.
At the end of third quarter 2011, there was 723,543
square feet of speculative space under construction in the Dallas/ The highest quoted rental rate in the Dallas/Ft. Worth
Ft. Worth market. This compares to a total of 627,579 square office market at the end of third quarter 2011 was $47.38 per
feet that was underway at the end of second quarter 2011. A square foot. The lowest quoted rental rate in the market at that
year earlier, in third quarter 2010, there was 309,951 square time was $3.81 per square foot.
feet underway in Dallas/Ft. Worth.
Class 'A' quoted rental rates in Dallas/Ft. Worth decreased
Some of the notable 2011 deliveries include: Forest Park $0.19 from the end of second quarter 2011 to the end of third
Medical Office Building, a 72,000-square-foot facility that quarter 2011, ending the third quarter at $22.04 per square
delivered in second quarter 2011 and is now 75% occupied, foot. A year earlier, in third quarter 2010, quoted rates were
and 5000 Long Prairie Rd, a 43,447-square-foot building that $22.18.
delivered in second quarter 2011 and is now 58% occupied.
The third quarter 2011 decrease in class 'A' quoted rental
The largest projects underway at the end of third quarter rates represents a 0.9% decrease over second quarter 2011
2011 were HQ of Encana Oil & Gas, a 281,600-square-foot levels. Additionally, quoted rates were down 0.6% from third
building with 100% of its space pre-leased, and Baylor quarter 2010 to third quarter 2011, and down 4.1% from third
McKinney Medical Office Building, a 113,700-square-foot quarter 2009. From third quarter 2008 to third quarter 2011,
facility that is 64% pre-leased. quoted rates decreased 9.1% in Dallas/Ft. Worth. Quoted rates
are up 1.0% over the previous five years.
Rental Rates
Quoted rental rates saw a $0.01 per square foot increase
from the second quarter 2011 to the third quarter 2011 in
Quoted Rental Rates by Class Based on Full Service Equivalent Rates
Class A Class B Class C Total M arket
$3 0 .0 0
$25.00
$2 0 .0 0
$15.00
$10.00
$5.00
$0.00 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q 2010 3q 2010 4q 2 0 11 1q 2 0 11 2 q 2 0 11 3 q
2008 1q
Source: CoSt ar Propert y®
© 2011 CoStar Realty Information The CoStar Office Report www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
OVERVIEW
The highest third quarter 2011 quoted rental rate in Rental Rate Comparison
Dallas/Ft. Worth's class 'A' office market was $38.90 per square
foot, while the lowest rate was $11.29 per square foot. Dallas/ Ft Wort h U.S.
Dallas/Ft. Worth's class 'B' sector ended third quarter $25.00
2011 with quoted rental rates of $17.23 per square foot. These
rates are $0.01 per square foot higher than the second quarter $2 0 .0 0
2011, when they were $17.02 per square foot, and $0.02 per
square foot higher than third quarter 2010 rates (when they $15.00
were $17.21 per square foot).
$10 .0 0
Class 'B' quoted rental rates in Dallas/Ft. Worth are higher $5.00
0.1% from third quarter 2010 to third quarter 2011, lower
3.6% over third quarter 2009 levels, lower 6.3% over third $0 .0 0
quarter 2008 levels, and higher 3.1% over third quarter 2006
levels. 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011
1q 2q 3q 4q 1q 2q 3q 4q 1q 2q 3q
Quoted rental rates in Dallas/Ft. Worth's class 'B' sector
ranged from $47.38 per square foot (highest in the market) to Sour ce: CoSt ar Proper t y®
$6.00 per square foot (lowest in the market) in third quarter
2011. The total square footage in the first quarter was 1,747,763
square feet for an average price per square foot of $132.72.
Inventory Total office building sales activity in 2011 was up
The Dallas/Ft. Worth office market's Class 'A' sector compared to 2010. In the first six months of 2011, the market
saw 23 office sales transactions with a total volume of
consisted of 379 projects with 103,633,016 square feet of office $488,940,878. The price per square foot averaged $97.75. In
space at the end of third quarter 2011. The Class 'B' sector in the same first six months of 2010, the market posted 15
Dallas/Ft. Worth included 1,733 buildings totaling 121,782,826 transactions with a total volume of $159,075,369. The price per
square feet at the end of third quarter 2011, and the Class 'C' square foot averaged $78.62.
market consisted of 515 projects with 22,697,507 square feet of
space. Cap rates have been higher in 2011, averaging 8.46%
compared to the same period in 2010 when they averaged
Additionally, there were 706 owner-occupied office 8.44%.
buildings within the Dallas/Ft. Worth market containing
52,129,154 square feet of space. Including both speculative and One of the largest transactions that has occurred within
owner-occupied facilities, the Dallas/Ft. Worth office market the last 4 quarters in the Dallas/Ft Worth market is the sale of
had a total size of 336,187,805 square feet (in 9,850 projects) at Blue Cross and Blue Shield of TX, T in Richardson. This
the end of third quarter 2011. 1,050,000 square foot office building sold for $250,000,000, or
$238.10 per square foot. The property sold on 12/10/2010.
Sales Activity
Tallying office building sales of 15,000 square feet or
larger, Dallas/Ft Worth office sales figures rose during the
second quarter 2011 in terms of dollar volume compared to the
first quarter of 2011.
In the second quarter, 12 office transactions closed with a
total volume of $256,985,000. The 12 buildings totaled
3,254,231 square feet and the average price per square foot
equated to $78.97 per square foot. That compares to 11
transactions totaling $231,955,878 in the first quarter 2011.
© 2011 CoStar Realty Information The CoStar Office Report www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
C L A S S A,B&C
MARKET HIGHLIGHTS
Deliveries, Absorption & Vacancy
Delivered SF Absorption SF Vacancy
2.00 22.50%
1.50 22.00%
21.50%
1.00
21.00%
0.50 20.50%
0.00 20.00%
19.50%
(0.50)
19.00%
(1.00) 18.50%
(1.50) 18.00%
2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q
Source: CoStar Property•
Comparisons To Prior Time Periods Quoted Rental Rates
Current Time Period $21.00
Quarter
Category 51,776,488 of Comparison Change
Vacant SF -1.36%
Under Construction 723,543 vs Prev Qtr 52,488,304 -4.08% $20.50
SF 95,964 $20.00
Quoted Rates $19.25 vs 12 Mths Ago 53,979,479
413,592
Absorption SF 769,842 vs Prev Qtr 627,579 0.07%
-0.42%
Delivered SF 58,026 vs 12 Mths Ago 309,951 $19.50
840,854 $19.00
vs Prev Qtr $19.24 (601,489)
vs 12 Mths Ago $19.33 (73,264)
58,026
vs Prev Qtr (71,012) $18.50
vs This Qtr Last Yr 1,371,331 $18.00
2008
vs Prev Qtr 131,290 3q 2009 2009 2010 2010 2011 2011
1q 3q 1q 3q 1q 3q
vs This Qtr Last Yr 0
Source: CoStar Property• Source: CoStar Property•
Historical Analysis
Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted
Period # Bldgs Total RBA Vacant SF Vacant % Absorption # Bld Total RBA # Bld Total RBA Rates
2011 3q 2,627 248,113,349 51,776,488 20.9% 769,842 3 58,026 10 723,543 $19.25
2011 2q (71,012) 8 627,579 $19.24
2011 1q 2,624 248,055,323 52,488,304 21.2% 340,811 3 131,290 $19.27
2010 4q 1,019,171 10 645,169 $19.32
2010 3q 2,623 248,036,636 52,398,605 21.1% 1,371,331 3 78,667 9 533,583 $19.33
2010 2q (458,450) 8 309,951 $19.47
2010 1q 2,621 248,374,969 53,077,749 21.4% (1,074,432) 2 117,441 6 268,108 $19.71
2009 4q (140,804) 8 610,976 $19.92
2009 3q 2,619 248,257,528 53,979,479 21.7% (334,022) 00 9 1,613,544 $19.99
2009 2q (1,072,908) $20.14
2009 1q 2,619 248,257,528 55,350,810 22.3% 819,005 4 438,368 13 1,963,015 $20.42
2008 4q 744,865 27 3,264,221 $20.69
2008 3q 2,615 247,819,160 54,453,992 22.0% 402,168 3 1,090,093 33 3,883,378 $20.75
2008 2q 1,272,510 44 4,908,507 $21.02
2008 1q 2,612 246,729,067 52,289,467 21.2% 987,294 6 422,586 46 6,096,053 $20.70
51 6,454,567
2,607 246,343,739 51,763,335 21.0% 15 1,317,344 61 6,903,116
2,592 245,026,395 50,111,969 20.5% 9 680,891
2,583 244,345,504 48,358,170 19.8% 15 1,152,738
2,569 243,223,055 48,054,726 19.8% 11 1,544,241
2,560 241,765,475 47,342,011 19.6% 11 806,580
2,549 240,958,895 46,937,599 19.5% 23 1,363,242
2,526 239,595,653 46,846,867 19.6% 22 1,889,416
Source: CoStar Property•
© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
CLASS A
MARKET HIGHLIGHTS
Deliveries, Absorption & Vacancy
Delivered SF Absorption SF Vacancy
1.50 24.00%
1.00 23.00%
0.50 22.00%
0.00 21.00%
(0.50) 20.00%
(1.00) 19.00%
18.00%
(1.50) 17.00%
2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011
3q 4q 1q 2q 3q 4q 1q 2q 3q 4q 1q 2q 3q
Source: CoStar Property•
Comparisons To Prior Time Periods Quoted Rental Rates
Current Time Period $24.50
Quarter $24.00
Category 21,834,789 of Comparison Change $23.50
Vacant SF -1.88% $23.00
Under Construction 613,223 vs Prev Qtr 22,253,393 -5.12% $22.50
SF 60,000 $22.00
Quoted Rates $22.04 vs 12 Mths Ago 23,013,295 $21.50
445,722 $21.00
Absorption SF 418,604 vs Prev Qtr 553,223 -0.84% $20.50
-0.62%
Delivered SF 0 vs 12 Mths Ago 167,501 2008
765,025 3q
vs Prev Qtr $22.23 (279,420)
vs 12 Mths Ago $22.18 (72,000)
0
vs Prev Qtr (346,421)
vs This Qtr Last Yr 698,024
vs Prev Qtr 72,000 2009 2009 2010 2010 2011 2011
1q 3q 1q 3q 1q 3q
vs This Qtr Last Yr 0
Source: CoStar Property• Source: CoStar Property•
Historical Analysis
Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted
Period # Bldgs Total RBA Vacant SF Vacant % Absorption # Bld Total RBA # Bld Total RBA Rates
2011 3q 379 103,633,016 21,834,789 21.1% 418,604 00 5 613,223 $22.04
2011 2q (346,421) 4 553,223 $22.23
2011 1q 379 103,633,016 22,253,393 21.5% 252,132 1 72,000 4 511,523 $22.15
2010 4q 1,021,692 3 382,282 $22.26
2010 3q 378 103,561,016 21,834,972 21.1% 698,024 1 28,682 3 167,501 $22.18
2010 2q 204,973 3 167,501 $22.38
2010 1q 377 103,532,334 22,058,422 21.3% (935,902) 1 66,819 3 457,025 $22.70
2009 4q 3 1,440,206 $22.88
2009 3q 376 103,465,515 23,013,295 22.2% 85,626 00 5 1,626,090 $22.98
2009 2q (133,989) 9 2,342,297 $23.31
2009 1q 376 103,465,515 23,711,319 22.9% (182,328) 1 361,524 11 2,751,596 $23.66
2008 4q 488,926 17 3,578,964 $24.03
2008 3q 375 103,103,991 23,554,768 22.8% 635,064 1 1,050,000 20 4,709,368 $24.25
2008 2q 20 4,690,368 $24.35
2008 1q 374 102,053,991 21,568,866 21.1% 21,639 2 185,884 22 5,110,681 $23.92
397,449
372 101,868,107 21,468,608 21.1% (140,338) 4 716,207
368 101,151,900 20,618,412 20.4% 3 437,981
365 100,713,919 19,998,103 19.9% 6 827,368
359 99,886,551 19,659,661 19.7% 4 1,222,404
355 98,664,147 19,072,321 19.3% 1 80,000
354 98,584,147 19,013,960 19.3% 4 634,763
350 97,949,384 18,776,646 19.2% 2 326,357
Source: CoStar Property•
© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
CLASS B
MARKET HIGHLIGHTS
Deliveries, Absorption & Vacancy
Delivered SF Absorption SF Vacancy
1.00 23.50%
0.80 23.00%
0.60 22.50%
0.40 22.00%
0.20 21.50%
0.00 21.00%
(0.20) 20.50%
(0.40) 20.00%
(0.60) 19.50%
(0.80) 19.00%
(1.00)
2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011
3q 4q 1q 2q 3q 4q 1q 2q 3q 4q 1q 2q 3q
Source: CoStar Property•
Comparisons To Prior Time Periods Quoted Rental Rates
Current Time Period $18.50
Quarter
Category 26,252,280 of Comparison Change
Vacant SF -1.15%
Under Construction 110,320 vs Prev Qtr 26,558,785 -4.36% $18.00
SF 35,964
Quoted Rates $17.23 vs 12 Mths Ago 27,448,191 (32,130)
1.21%
Absorption SF 364,531 vs Prev Qtr 74,356 0.09% $17.50
40,441
Delivered SF 58,026 vs 12 Mths Ago 142,450
(314,959)
vs Prev Qtr $17.02 (1,264) $17.00
58,026
vs 12 Mths Ago $17.21 $16.50
vs Prev Qtr 324,090
vs This Qtr Last Yr 679,490 $16.00
2008
vs Prev Qtr 59,290 3q 2009 2009 2010 2010 2011 2011
1q 3q 1q 3q 1q 3q
vs This Qtr Last Yr 0
Source: CoStar Property• Source: CoStar Property•
Historical Analysis
Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted
Period # Bldgs Total RBA Vacant SF Vacant % Absorption # Bld Total RBA # Bld Total RBA Rates
2011 3q 1,733 121,782,826 26,252,280 21.6% 364,531 3 58,026 5 110,320 $17.23
2011 2q 324,090 4 74,356 $17.02
2011 1q 1,730 121,724,800 26,558,785 21.8% 117,464 2 59,290 6 133,646 $17.11
2010 4q 6 151,301 $17.13
2010 3q 1,730 121,778,113 26,936,188 22.1% 78,146 2 49,985 5 142,450 $17.21
2010 2q 679,490 3 100,607 $17.27
2010 1q 1,729 122,145,128 27,420,667 22.4% (714,805) 1 50,622 5 153,951 $17.51
2009 4q (310,868) 6 173,338 $17.71
2009 3q 1,728 122,094,506 27,448,191 22.5% 00 8 336,925 $17.87
2009 2q 37,885 18 921,924 $17.91
2009 1q 1,728 122,094,506 28,127,681 23.0% (232,911) 3 76,844 22 1,131,782 $18.26
2008 4q (757,301) 27 1,329,543 $18.36
2008 3q 1,725 122,017,662 27,336,032 22.4% 361,822 2 40,093 26 1,386,685 $18.39
2008 2q 184,988 31 1,764,199 $18.49
2008 1q 1,723 121,977,569 26,985,071 22.1% 479,608 4 236,702 39 1,792,435 $18.28
866,510
1,720 121,778,125 26,823,512 22.0% 1,118,364 11 601,137
1,709 121,176,988 25,989,464 21.4% 6 242,910
1,703 120,934,078 24,989,253 20.7% 9 325,370
1,694 120,608,708 25,025,705 20.7% 7 321,837
1,689 120,373,532 24,975,517 20.7% 10 726,580
1,679 119,646,952 24,728,545 20.7% 19 728,479
1,660 118,918,473 24,866,576 20.9% 20 1,563,059
Source: CoStar Property•
© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
CLASS C
MARKET HIGHLIGHTS
Deliveries, Absorption & Vacancy
Delivered SF Absorption SF Vacancy
0.20 17.00%
0.15 16.50%
0.10 16.00%
0.05 15.50%
0.00 15.00%
(0.05) 14.50%
(0.10) 14.00%
(0.15) 13.50%
(0.20)
(0.25)
(0.30)
2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011
3q 4q 1q 2q 3q 4q 1q 2q 3q 4q 1q 2q 3q
Source: CoStar Property•
Comparisons To Prior Time Periods Quoted Rental Rates
Current Time Period $15.00
Quarter $14.80
Category 3,689,419 of Comparison Change $14.60
Vacant SF 0.36% $14.40
Under Construction 0 vs Prev Qtr 3,676,126 4.87% $14.20
SF 0 $14.00
Quoted Rates $14.77 vs 12 Mths Ago 3,517,993 0 $13.80
-0.92% $13.60
Absorption SF (13,293) vs Prev Qtr 0 -0.20% $13.40
35,388 $13.20
Delivered SF 0 vs 12 Mths Ago 0 (7,110)
0 2008
vs Prev Qtr $14.90 0 3q
vs 12 Mths Ago $14.80
vs Prev Qtr (48,681)
vs This Qtr Last Yr (6,183)
vs Prev Qtr 0 2009 2009 2010 2010 2011 2011
1q 3q 1q 3q 1q 3q
vs This Qtr Last Yr 0
Source: CoStar Property• Source: CoStar Property•
Historical Analysis
Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted
Period # Bldgs Total RBA Vacant SF Vacant % Absorption # Bld Total RBA # Bld Total RBA Rates
2011 3q 515 22,697,507 3,689,419 16.3% (13,293) 00 00 $14.77
2011 2q (48,681) 00 00 $14.90
2011 1q 515 22,697,507 3,676,126 16.2% (28,785) 00 $14.67
2010 4q (80,667) 00 $14.70
2010 3q 515 22,697,507 3,627,445 16.0% 00 00 $14.80
2010 2q (6,183) 00 00 $14.36
2010 1q 515 22,697,507 3,598,660 15.9% 51,382 00 $14.17
2009 4q 172,338 00 $14.00
2009 3q 515 22,697,507 3,517,993 15.5% (264,315) 00 00 $14.43
2009 2q 32,878 00 $14.27
2009 1q 515 22,697,507 3,511,810 15.5% (133,279) 00 00 $13.79
2008 4q (31,743) 00 00 $13.92
2008 3q 515 22,697,507 3,563,192 15.7% (75,187) 00 $13.80
2008 2q (99,079) 00 $14.46
2008 1q 515 22,697,507 3,735,530 16.5% 00 00 $14.24
8,551 00
515 22,697,507 3,471,215 15.3% 9,268
515 22,697,507 3,504,093 15.4% 00
00
515 22,697,507 3,370,814 14.9%
516 22,727,796 3,369,360 14.8% 00
516 22,727,796 3,294,173 14.5% 00
00
516 22,727,796 3,195,094 14.1%
516 22,727,796 3,203,645 14.1% 00
Source: CoStar Property•
© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com
Vacant&Available
Space
THIRD-QUARTER 2011
The Dallas/Ft Worth Office Market
Third Quarter 2011
Dallas/Ft Worth Office Market
C L A S S A,B&C
VACANCY ANALYSIS
Overall Vacancy & Quoted Rates
Vacancy Rate Average Vacancy Quoted Rates
2009 1q 2009 2q 2009 3q 2010 1q 2010 2q 2010 3q
22.50% $21.00
22.00%
$20.50
21.50%
21.00% $20.00
20.50%
$19.50
20.00%
19.50% $19.00
19.00%
$18.50
18.50%
18.00% $18.00
2008 3q 2008 4q 2009 4q 2010 4q 2011 1q 2011 2q 2011 3q
Source: CoStar Property•
Markets Ranked by Vacancy Vacancy Distribution
Existing Direct w/ Sublet Vacant 4%
Inventory Direct
Market 1,434,787 Rank SF %
North Fort Worth 9,616,006 Sublet
South Ft Worth 9,679,996 1 125,124 8.7%
Ft Worth CBD 4,240,222
Preston Center 2,868,367 2 1,173,435 12.2%
Southwest Dallas 5,661,398
East Dallas 2,181,968 3 1,215,282 12.6%
Northeast Ft Worth 14,465,148
Central Expressway 38,638,067 4 572,147 13.5%
Far North Dallas 10,903,110
Uptown/Turtle Creek 5 391,512 13.6%
6 790,670 14.0%
7 317,237 14.5%
8 2,387,191 16.5%
9 6,820,299 17.7%
10 2,084,387 19.1% 96%
Source: CoStar Property• Source: CoStar Property•
Historical Analysis
Existing Vacant Space Occupied Space Quoted
Period Inventory Direct % Sublet % Total % SF % Rates
2011 3q 248,113,349 49,705,162 20.0% 2,071,326 0.8% 51,776,488 20.9% 196,336,861 79.1% $19.25
2011 2q 248,055,323 50,751,435 20.5% 1,736,869 0.7% 52,488,304 21.2% 195,567,019 78.8% $19.24
2011 1q 248,036,636 50,653,982 20.4% 1,744,623 0.7% 52,398,605 21.1% 195,638,031 78.9% $19.27
2010 4q 248,374,969 51,391,000 20.7% 1,686,749 0.7% 53,077,749 21.4% 195,297,220 78.6% $19.32
2010 3q 248,257,528 51,910,882 20.9% 2,068,597 0.8% 53,979,479 21.7% 194,278,049 78.3% $19.33
2010 2q 248,257,528 53,022,463 21.4% 2,328,347 0.9% 55,350,810 22.3% 192,906,718 77.7% $19.47
2010 1q 247,819,160 52,130,807 21.0% 2,323,185 0.9% 54,453,992 22.0% 193,365,168 78.0% $19.71
2009 4q 246,729,067 50,006,451 20.3% 2,283,016 0.9% 52,289,467 21.2% 194,439,600 78.8% $19.92
2009 3q 246,343,739 49,681,852 20.2% 2,081,483 0.8% 51,763,335 21.0% 194,580,404 79.0% $19.99
2009 2q 245,026,395 48,116,064 19.6% 1,995,905 0.8% 50,111,969 20.5% 194,914,426 79.5% $20.14
2009 1q 244,345,504 46,443,327 19.0% 1,914,843 0.8% 48,358,170 19.8% 195,987,334 80.2% $20.42
2008 4q 243,223,055 46,049,927 18.9% 2,004,799 0.8% 48,054,726 19.8% 195,168,329 80.2% $20.69
2008 3q 241,765,475 45,277,120 18.7% 2,064,891 0.9% 47,342,011 19.6% 194,423,464 80.4% $20.75
2008 2q 240,958,895 44,728,116 18.6% 2,209,483 0.9% 46,937,599 19.5% 194,021,296 80.5% $21.02
2008 1q 239,595,653 44,848,846 18.7% 1,998,021 0.8% 46,846,867 19.6% 192,748,786 80.4% $20.70
Source: CoStar Property•
© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
CLASS A
VACANCY ANALYSIS
Overall Vacancy & Quoted Rates
Vacancy Rate Average Vacancy Quoted Rates
24.00% $24.50
23.00% $24.00
22.00% $23.50
$23.00
21.00%
$22.50
20.00%
$22.00
19.00% $21.50
18.00% $21.00
17.00% $20.50
2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q
Source: CoStar Property•
Markets Ranked by Vacancy Vacancy Distribution
Existing Direct w/ Sublet Vacant 4%
Inventory Direct
Market Rank SF %
Southwest Dallas 206,000 Sublet
Ft Worth CBD 5,400,475 1 0 0.0%
East Dallas
South Ft Worth 136,114 2 256,692 4.8%
Northeast Ft Worth 1,597,861
Preston Center 3 10,234 7.5%
Far North Dallas 103,938
Central Expressway 2,697,084 4 182,682 11.4%
Las Colinas 19,097,959
Uptown/Turtle Creek 7,600,377 5 14,099 13.6%
14,254,931
8,047,829 6 401,458 14.9%
7 3,376,400 17.7%
8 1,458,929 19.2%
9 2,962,007 20.8%
10 1,672,422 20.8% 96%
Source: CoStar Property• Source: CoStar Property•
Historical Analysis
Existing Vacant Space Occupied Space Quoted
Period Inventory Direct % Sublet % Total % SF % Rates
2011 3q 103,633,016 20,925,338 20.2% 909,451 0.9% 21,834,789 21.1% 81,798,227 78.9% $22.04
2011 2q 103,633,016 21,150,138 20.4% 1,103,255 1.1% 22,253,393 21.5% 81,379,623 78.5% $22.23
2011 1q 103,561,016 20,732,313 20.0% 1,102,659 1.1% 21,834,972 21.1% 81,726,044 78.9% $22.15
2010 4q 103,532,334 21,068,551 20.3% 1.0% 22,058,422 21.3% 81,473,912 78.7% $22.26
2010 3q 103,465,515 21,714,330 21.0% 989,871 1.3% 23,013,295 22.2% 80,452,220 77.8% $22.18
2010 2q 103,465,515 22,216,881 21.5% 1,298,965 1.4% 23,711,319 22.9% 79,754,196 77.1% $22.38
2010 1q 103,103,991 22,034,519 21.4% 1,494,438 1.5% 23,554,768 22.8% 79,549,223 77.2% $22.70
2009 4q 102,053,991 20,011,950 19.6% 1,520,249 1.5% 21,568,866 21.1% 80,485,125 78.9% $22.88
2009 3q 101,868,107 20,149,346 19.8% 1,556,916 1.3% 21,468,608 21.1% 80,399,499 78.9% $22.98
2009 2q 101,151,900 19,411,216 19.2% 1,319,262 1.2% 20,618,412 20.4% 80,533,488 79.6% $23.31
2009 1q 100,713,919 18,771,510 18.6% 1,207,196 1.2% 19,998,103 19.9% 80,715,816 80.1% $23.66
2008 4q 18,336,971 18.4% 1,226,593 1.3% 19,659,661 19.7% 80,226,890 80.3% $24.03
2008 3q 99,886,551 17,743,334 18.0% 1,322,690 1.3% 19,072,321 19.3% 79,591,826 80.7% $24.25
2008 2q 98,664,147 17,544,243 17.8% 1,328,987 1.5% 19,013,960 19.3% 79,570,187 80.7% $24.35
2008 1q 98,584,147 17,423,941 17.8% 1,469,717 1.4% 18,776,646 19.2% 79,172,738 80.8% $23.92
97,949,384 1,352,705
Source: CoStar Property•
© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
CLASS B
VACANCY ANALYSIS
Overall Vacancy & Quoted Rates
Vacancy Rate Average Vacancy Quoted Rates
2009 1q 2009 2q 2009 3q 2010 1q 2010 2q 2010 3q
23.50% $18.50
23.00%
22.50% $18.00
22.00%
$17.50
21.50%
21.00%
$17.00
20.50%
20.00% $16.50
19.50%
19.00% $16.00
2008 3q 2008 4q 2009 4q 2010 4q 2011 1q 2011 2q 2011 3q
Source: CoStar Property•
Markets Ranked by Vacancy Vacancy Distribution
Existing Direct w/ Sublet Vacant 4%
Inventory Direct
Market 1,287,518 Rank SF %
Preston Center 1,191,989 Sublet
North Fort Worth 6,263,971 1 105,041 8.2%
South Ft Worth 6,202,520
Central Expressway 2,481,586 2 109,289 9.2%
Uptown/Turtle Creek 1,733,000
Northeast Ft Worth 3,796,139 3 746,774 11.9%
East Dallas 1,989,784
Southwest Dallas 18,959,757 4 889,970 14.3%
Far North Dallas 13,752,393
Mid-Cities 5 371,065 15.0%
6 270,910 15.6%
7 594,558 15.7%
8 324,368 16.3%
9 3,389,378 17.9%
10 2,555,691 18.6% 96%
Source: CoStar Property• Source: CoStar Property•
Historical Analysis
Existing Vacant Space Occupied Space Quoted
Period Inventory Direct % Sublet % Total % SF % Rates
2011 3q 121,782,826 25,105,531 20.6% 1,146,749 0.9% 26,252,280 21.6% 95,530,546 78.4% $17.23
2011 2q 121,724,800 25,939,713 21.3% 619,072 0.5% 26,558,785 21.8% 95,166,015 78.2% $17.02
2011 1q 121,778,113 26,314,703 21.6% 621,485 0.5% 26,936,188 22.1% 94,841,925 77.9% $17.11
2010 4q 122,145,128 26,740,844 21.9% 679,823 0.6% 27,420,667 22.4% 94,724,461 77.6% $17.13
2010 3q 122,094,506 26,709,633 21.9% 738,558 0.6% 27,448,191 22.5% 94,646,315 77.5% $17.21
2010 2q 122,094,506 27,336,936 22.4% 790,745 0.6% 28,127,681 23.0% 93,966,825 77.0% $17.27
2010 1q 122,017,662 26,571,327 21.8% 764,705 0.6% 27,336,032 22.4% 94,681,630 77.6% $17.51
2009 4q 121,977,569 26,279,614 21.5% 705,457 0.6% 26,985,071 22.1% 94,992,498 77.9% $17.71
2009 3q 121,778,125 26,087,543 21.4% 735,969 0.6% 26,823,512 22.0% 94,954,613 78.0% $17.87
2009 2q 121,176,988 25,209,771 20.8% 779,693 0.6% 25,989,464 21.4% 95,187,524 78.6% $17.91
2009 1q 120,934,078 24,309,290 20.1% 679,963 0.6% 24,989,253 20.7% 95,944,825 79.3% $18.26
2008 4q 120,608,708 24,353,289 20.2% 672,416 0.6% 25,025,705 20.7% 95,583,003 79.3% $18.36
2008 3q 120,373,532 24,252,733 20.1% 722,784 0.6% 24,975,517 20.7% 95,398,015 79.3% $18.39
2008 2q 119,646,952 24,005,482 20.1% 723,063 0.6% 24,728,545 20.7% 94,918,407 79.3% $18.49
2008 1q 118,918,473 24,236,636 20.4% 629,940 0.5% 24,866,576 20.9% 94,051,897 79.1% $18.28
Source: CoStar Property•
© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
CLASS C
VACANCY ANALYSIS
Overall Vacancy & Quoted Rates
Vacancy Rate Average Vacancy Quoted Rates
17.00% $15.00
16.50% $14.80
$14.60
16.00%
$14.40
15.50% $14.20
15.00% $14.00
$13.80
14.50%
$13.60
14.00% $13.40
13.50% $13.20
2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q
Source: CoStar Property•
Markets Ranked by Vacancy Vacancy Distribution
Existing Direct w/ Sublet Vacant 0%
Inventory Direct
Market 4,876,851 Rank SF %
Stemmons Freeway Sublet
Central Expressway 662,251 1 275,880 5.7%
North Fort Worth 242,798
LBJ Freeway 974,608 2 38,292 5.8%
Las Colinas 713,038
Northeast Ft Worth 345,030 3 15,835 6.5%
Far North Dallas 580,351
Southwest Dallas 672,583 4 83,416 8.6%
East Dallas 1,729,145
Uptown/Turtle Creek 373,695 5 62,645 8.8%
6 32,228 9.3%
7 54,521 9.4%
8 67,144 10.0%
9 185,878 10.7%
10 40,900 10.9% 100%
Source: CoStar Property• Source: CoStar Property•
Historical Analysis
Existing Vacant Space Occupied Space Quoted
Period Inventory Direct % Sublet % Total % SF % Rates
2011 3q 22,697,507 3,674,293 16.2% 15,126 0.1% 3,689,419 16.3% 19,008,088 83.7% $14.77
2011 2q 22,697,507 3,661,584 16.1% 14,542 0.1% 3,676,126 16.2% 19,021,381 83.8% $14.90
2011 1q 22,697,507 3,606,966 15.9% 20,479 0.1% 3,627,445 16.0% 19,070,062 84.0% $14.67
2010 4q 22,697,507 3,581,605 15.8% 17,055 0.1% 3,598,660 15.9% 19,098,847 84.1% $14.70
2010 3q 22,697,507 3,486,919 15.4% 31,074 0.1% 3,517,993 15.5% 19,179,514 84.5% $14.80
2010 2q 22,697,507 3,468,646 15.3% 43,164 0.2% 3,511,810 15.5% 19,185,697 84.5% $14.36
2010 1q 22,697,507 3,524,961 15.5% 38,231 0.2% 3,563,192 15.7% 19,134,315 84.3% $14.17
2009 4q 22,697,507 3,714,887 16.4% 20,643 0.1% 3,735,530 16.5% 18,961,977 83.5% $14.00
2009 3q 22,697,507 3,444,963 15.2% 26,252 0.1% 3,471,215 15.3% 19,226,292 84.7% $14.43
2009 2q 22,697,507 3,495,077 15.4% 0.0% 3,504,093 15.4% 19,193,414 84.6% $14.27
2009 1q 22,697,507 3,362,527 14.8% 9,016 0.0% 3,370,814 14.9% 19,326,693 85.1% $13.79
2008 4q 22,727,796 3,359,667 14.8% 8,287 0.0% 3,369,360 14.8% 19,358,436 85.2% $13.92
2008 3q 22,727,796 3,281,053 14.4% 9,693 0.1% 3,294,173 14.5% 19,433,623 85.5% $13.80
2008 2q 22,727,796 3,178,391 14.0% 13,120 0.1% 3,195,094 14.1% 19,532,702 85.9% $14.46
2008 1q 22,727,796 3,188,269 14.0% 16,703 0.1% 3,203,645 14.1% 19,524,151 85.9% $14.24
15,376
Source: CoStar Property•
© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com
AbsorptionActivity
THIRD-QUARTER 2011
The Dallas/Ft Worth Office Market
Third Quarter 2011
Dallas/Ft Worth Office Market
C L A S S A,B&C
ABSORPTION ANALYSIS
Overall Net Absorption
1,500,000 Absorption Vacancy Average Absorption 22.50%
2008 4q 2009 1q 2009 4q 2010 1q 2010 4q 2011 1q 2011 2q
22.00%
1,000,000
21.50%
500,000 21.00%
20.50%
0
20.00%
(500,000) 19.50%
19.00%
(1,000,000)
18.50%
(1,500,000) 18.00%
2008 3q 2009 2q 2009 3q 2010 2q 2010 3q 2011 3q
Source: CoStar Property•
Markets Ranked by Net Absorption Direct, Sublet Absorption
Existing YTD Net Absorption Direct SF Sublet SF
Inventory 1.50
Market 38,638,067 Rank SF
Far North Dallas 29,630,839
Las Colinas 10,903,110 1 856,451 1.00
Uptown/Turtle Creek 22,909,613
Richardson/Plano 2 485,346
Preston Center 4,240,222
South Ft Worth 9,616,006 3 307,625 Millions of SF 0.50
Southwest Dallas 2,868,367
Lewisville/Denton 6,998,544 4 162,794 0.00
East Dallas 5,661,398
Northeast Ft Worth 2,181,968 5 45,386 (0.50)
6 33,108
7 22,378 (1.00)
8 (9,467) (1.50)
2008
9 (15,250) 3q 2009 2009 2010 2010 2011 2011
1q 3q 1q 3q 1q 3q
10 (16,548)
Source: CoStar Property• Source: CoStar Property•
Historical Analysis
Period Existing Direct Gross Absorption Total Direct Net Absorption Total Occupied
Inventory Sublet Sublet SF
2011 3q 4,235,778 4,924,692 1,104,299 769,842
2011 2q 248,113,349 3,497,180 688,914 3,887,743 (78,766) (334,457) (71,012) 196,336,861
2011 1q 248,055,323 3,771,642 390,563 4,233,446 398,685 7,754 340,811 195,567,019
2010 4q 248,036,636 4,484,313 461,804 5,087,467 637,323 1,019,171 195,638,031
2010 3q 248,374,969 4,457,091 603,154 5,178,595 (57,874) 1,371,331 195,297,220
2010 2q 248,257,528 3,416,055 721,504 3,835,488 1,111,581 381,848 (458,450) 194,278,049
2010 1q 248,257,528 4,742,131 419,433 5,368,541 (453,288) 259,750 (1,074,432) 192,906,718
2009 4q 247,819,160 4,444,977 626,410 5,200,057 (1,034,263) (140,804) 193,365,168
2009 3q 246,729,067 4,217,270 755,080 4,571,418 (5,162) (334,022) 194,439,600
2009 2q 246,343,739 3,552,960 354,148 4,053,366 60,729 (40,169) (1,072,908) 194,580,404
2009 1q 245,026,395 4,282,194 500,406 4,725,594 (273,564) (201,533) 819,005 194,914,426
2008 4q 244,345,504 4,627,825 443,400 5,211,343 (1,019,660) (60,458) 744,865 195,987,334
2008 3q 243,223,055 4,942,028 583,518 5,525,058 729,049 (53,248) 402,168 195,168,329
2008 2q 241,765,475 5,559,558 583,030 6,134,668 682,273 89,956 1,272,510 194,423,464
2008 1q 240,958,895 5,139,908 575,110 5,842,682 257,576 62,592 987,294 194,021,296
239,595,653 702,774 1,442,968 144,592 192,748,786
985,408 (170,458)
1,886
Source: CoStar Property•
© 2011 CoStar Realty Information, Inc. The CoStar Office Rep www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
C L A S S A,B&C
MARKET SHARE OF NET ABSORPTION
Net Absorption in Select Buildings
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000
Synergy Park - Building A-D
Browning Place II
Fuller Ridge I
Citymark
Chateau Plaza
Sherman Street Commons - A
1250 W Mockingbird Ln
Lakeside Tower
Arbors at Brookhollow
1600 Viceroy Dr
Oil & Gas/Commerce Bldg
Northpointe Centre
2727 Inwood Rd - Phase I
Crestview Tower
Coit Central Tower
Preston Park Financial East
610 Uptown
Fountain Place
Energy Plaza
2100 Ross Avenue
Saint Paul Place
5950 Sherry Ln
Hampton Court
Preston Center
1120 Empire Central Pl
Total Net Absorption
Building Name Submarket RBA Vacant SF 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD Total
Synergy Park - Building A-D Richardson/Plano 319,791 232,578 87,213 0 0 0 87,213
201,405 0 0 0 51,685 0 51,685
Browning Place II Las Colinas 180,421 47,026 0 49,206
219,117 38,865 359 53,717 1,821 0 45,911
Fuller Ridge I Las Colinas 173,858 49,909 4,101 16,632 (11,907) 0 42,942
104,794 40,766 25,803 0 40,766
Citymark Uptown/Turtle Creek 40,766 507 (2,248) 0 40,636
125,924 0 0 (1) 0 0 39,826
Chateau Plaza Uptown/Turtle Creek 201,386 35,661 35,685 42,154 0 35,557
114,421 83,193 730 (6,973) 26,560 0 33,372
Sherman Street Commons - A LBJ Freeway 212,744 48,352 13,267 (7,372) 0 32,349
439,802 20,927 0 0 31,391
1250 W Mockingbird Ln Stemmons Freeway 161,170 6,973 (128) 30,720 0 0 30,720
71,068 40,345 0 34,741 0 29,570
Lakeside Tower Richardson/Plano 30,881 61,215 11,536 0 0 28,535
283,104 4,980 22,411 0 0 28,516
Arbors at Brookhollow Mid-Cities 244,790 0 10,464 8,107 (185) 0 27,155
173,545 78,565 (5,061) 2,387 0 25,992
1600 Viceroy Dr Stemmons Freeway 82,357 0 0 15,027 0 25,765
76,905 29,755 (1,442) 0 0 25,548
Oil & Gas/Commerce Bldg Ft Worth CBD 1,200,266 8,572 14,612 0 0 0 25,094
1,027,363 21,458 (8,922) 19,386 0 0 24,747
Northpointe Centre LBJ Freeway 194,739 19,048 (1,238) 27,031 0 24,016
866,709 31,053 #N/A 15,188 #N/A #N/A
2727 Inwood Rd - Phase I Stemmons Freeway 273,080 0 25,765 22,998 0 0 22,998
196,130 279,223 305,576 15,806 0 872,987
Crestview Tower Las Colinas 108,183 124,636 (41) (376,588) #N/A 0 166,654
#N/A 9,906 (71,012) 0 0 1,039,641
Coit Central Tower LBJ Freeway 24,892 5,361 267,020
23,000 60,089 9,448 502,822
Preston Park Financial East Far North Dallas 7,034,808 #N/A #N/A 769,842
241,078,541
610 Uptown Southwest Dallas 248,113,349 0 0
1,607,139 300,391
Fountain Place Dallas CBD 50,169,349
51,776,488 40,420
Energy Plaza Dallas CBD 340,811
2100 Ross Avenue Dallas CBD
Saint Paul Place Dallas CBD
5950 Sherry Ln Preston Center
Hampton Court Uptown/Turtle Creek
Preston Center Preston Center
1120 Empire Central Pl Stemmons Freeway
Subtotal Primary Competitors
Remaining Dallas/Ft Worth Class "A,B&C" Market
Total Dallas/Ft Worth Class "A,B&C" Market
Source: CoStar Property®
© 2004 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
CLASS A
ABSORPTION ANALYSIS
Overall Net Absorption
Absorption Vacancy Average Absorption
1,500,000 24.00%
1,000,000 23.00%
500,000 22.00%
0 21.00%
(500,000) 20.00%
19.00%
(1,000,000) 18.00%
(1,500,000) 17.00%
2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q
Source: CoStar Property•
Markets Ranked by Net Absorption Direct, Sublet Absorption
Existing YTD Net Absorption Direct SF Sublet SF
Inventory 1.50
Market 19,097,959 Rank SF
Far North Dallas
Uptown/Turtle Creek 8,047,829 1 463,892 1.00
Las Colinas 14,254,931
Preston Center 2 320,824
South Ft Worth 2,697,084
Mid-Cities 1,597,861 3 166,807 Millions of SF 0.50
Ft Worth CBD 3,996,084
Central Expressway 5,400,475 4 40,489 0.00
East Dallas 7,600,377
Southwest Dallas 5 20,571 (0.50)
136,114
206,000 6 13,838
7 10,886 (1.00)
8 8,437 (1.50)
2008
9 4,894 3q 2009 2009 2010 2010 2011 2011
1q 3q 1q 3q 1q 3q
10 0
Source: CoStar Property• Source: CoStar Property•
Historical Analysis
Period Existing Direct Gross Absorption Total Direct Net Absorption Total Occupied
Inventory Sublet Sublet SF
2011 3q 1,618,308 2,166,903 224,800 418,604
2011 2q 103,633,016 1,293,522 548,595 1,554,363 (345,825) 193,804 (346,421) 81,798,227
2011 1q 103,633,016 1,830,157 260,841 2,047,016 364,920 (596) 252,132 81,379,623
2010 4q 103,561,016 2,168,392 216,859 2,570,100 712,598 1,021,692 81,726,044
2010 3q 103,532,334 1,785,839 401,708 2,255,010 502,551 (112,788) 698,024 81,473,912
2010 2q 103,465,515 1,098,605 469,171 1,391,407 179,162 309,094 204,973 80,452,220
2010 1q 103,465,515 2,108,420 292,802 2,545,117 (972,569) 195,473 (935,902) 79,754,196
2009 4q 103,103,991 1,817,801 436,697 2,263,757 323,280 79,549,223
2009 3q 102,053,991 1,648,476 445,956 1,821,364 25,811 85,626 80,485,125
2009 2q 101,868,107 1,387,065 172,888 1,593,250 (47,043) 36,667 (133,989) 80,399,499
2009 1q 101,151,900 1,967,276 206,185 2,251,624 (229,539) (237,654) (182,328) 80,533,488
2008 4q 100,713,919 2,166,154 284,348 2,499,710 392,829 (86,946) 488,926 80,715,816
2008 3q 1,787,529 333,556 2,202,235 626,267 47,211 635,064 80,226,890
2008 2q 99,886,551 2,417,400 414,706 2,813,049 (119,091) 96,097 79,591,826
2008 1q 98,664,147 1,515,172 395,649 2,014,318 507,474 21,639 79,570,187
98,584,147 499,146 8,797 397,449 79,172,738
97,949,384 (22,829) 140,730 (140,338)
(110,025)
(117,509)
Source: CoStar Property•
© 2011 CoStar Realty Information, Inc. The CoStar Office Rep www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
CLASS A
MARKET SHARE OF NET ABSORPTION
Net Absorption in Select Buildings
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000
Citymark
Chateau Plaza
Lakeside Tower
1600 Viceroy Dr
Northpointe Centre
Crestview Tower
Coit Central Tower
Preston Park Financial East
Fountain Place
Energy Plaza
2100 Ross Avenue
Saint Paul Place
5950 Sherry Ln
Hampton Court
Preston Center
1700 Pacific
Turtle Creek Centre
Texas Clinic at Arlington
The Tower on Lake Carolyn
6504 International Pky
Las Colinas Towers I
8435 N Stemmons Fwy
The Tower At Cityplace
Centerfield Office Building
Walnut Glen Tower
Total Net Absorption
Building Name Submarket RBA Vacant SF 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD Total
Citymark Uptown/Turtle Creek 219,117 49,909 4,101 53,717 (11,907) 0 45,911
173,858 104,794 507 16,632 25,803 0 42,942
Chateau Plaza Uptown/Turtle Creek 201,386 26,560 0 39,826
212,744 83,193 13,267 (1) 0 33,372
Lakeside Tower Richardson/Plano 161,170 6,973 40,345 (6,973) 0 0 31,391
283,104 10,464 20,927 0 0 29,570
1600 Viceroy Dr Stemmons Freeway 244,790 61,215 29,755 (185) 0 28,535
173,545 78,565 14,612 0 2,387 0 28,516
Northpointe Centre LBJ Freeway 1,200,266 82,357 (8,922) 11,536 15,027 0 25,992
1,027,363 31,053 22,411 0 0 25,765
Crestview Tower Las Colinas 866,709 8,572 25,765 (5,061) 0 0 25,548
273,080 194,739 27,031 0 25,094
Coit Central Tower LBJ Freeway 196,130 (41) 0 15,188 0 24,747
108,183 0 9,906 (1,442) 0 0 24,016
Preston Park Financial East Far North Dallas #N/A 279,223 5,361 15,806 #N/A #N/A
1,340,481 124,636 9,448 0 #N/A 0 22,435
Fountain Place Dallas CBD 295,809 #N/A 19,386 (11,756) 0 19,803
24,892 29,897 (1,238) 19,741 0 19,359
Energy Plaza Dallas CBD 66,819 60,089 #N/A 0 0 16,002
364,337 #N/A 0 3,696 0 15,968
2100 Ross Avenue Dallas CBD 106,334 551,454 0 4,294 0 0 14,597
134,592 50,999 4,986 62 16,369 0 14,436
Saint Paul Place Dallas CBD 229,695 15,968 0 0 14,405
1,303,161 2,700 (1,772) 19,359 (1,710) 0 14,269
5950 Sherry Ln Preston Center 136,362 29,224 14,436 7,320 3,417 0 13,326
464,470 11,156 0 702 0 619,302
Hampton Court Uptown/Turtle Creek 9,923,552 8,907 10,852 0 167,078 0 (294,987)
93,709,464 59,792 14,755 0 251,526 0 324,315
Preston Center Preston Center 103,633,016 107,020 288,467 4,959 418,604
155,309 (36,335) 0
1700 Pacific Dallas CBD 252,132 (2,131)
0
Turtle Creek Centre Uptown/Turtle Creek 116,747 163,757
2,241,309 (510,178)
Texas Clinic at Arlington Mid-Cities 19,593,480 (346,421)
21,834,789
The Tower on Lake Carolyn Las Colinas
6504 International Pky Far North Dallas
Las Colinas Towers I Las Colinas
8435 N Stemmons Fwy Stemmons Freeway
The Tower At Cityplace Central Expressway
Centerfield Office Building Mid-Cities
Walnut Glen Tower Central Expressway
Subtotal Primary Competitors
Remaining Dallas/Ft Worth Class "A" Market
Total Dallas/Ft Worth Class "A" Market
Source: CoStar Property®
© 2004 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
CLASS B
ABSORPTION ANALYSIS
Overall Net Absorption
800,000 Absorption Vacancy Average Absorption 23.50%
2008 4q 2009 1q 2009 4q 2010 1q 2010 4q 2011 1q 2011 2q
600,000 23.00%
400,000 22.50%
200,000 22.00%
0 21.50%
(200,000) 21.00%
(400,000) 20.50%
(600,000) 20.00%
(800,000) 19.50%
(1,000,000) 19.00%
2008 3q 2009 2q 2009 3q 2010 2q 2010 3q 2011 3q
Source: CoStar Property•
Markets Ranked by Net Absorption Direct, Sublet Absorption
Existing YTD Net Absorption Direct SF Sublet SF
Inventory
Market 13,987,660 Rank SF 1.00
Richardson/Plano 18,959,757 0.80
Far North Dallas 14,662,870 1 491,534 0.60
Las Colinas 10,621,322 0.40
LBJ Freeway 2 393,751 0.20
Dallas CBD 6,243,190 0.00
Southwest Dallas 1,989,784 3 319,260 Millions of SF (0.20)
Preston Center 1,287,518 (0.40)
South Ft Worth 6,263,971 4 89,749 (0.60)
Lewisville/Denton 6,015,310 (0.80)
East Dallas 3,796,139 5 43,115 (1.00)
6 40,118 2008
3q
7 35,536
8 30,928
9 10,300 2009 2009 2010 2010 2011 2011
1q 3q 1q 3q 1q 3q
10 10,228
Source: CoStar Property• Source: CoStar Property•
Historical Analysis
Period Existing Direct Gross Absorption Total Direct Net Absorption Total Occupied
Inventory Sublet Sublet SF
2011 3q 2,450,801 2,588,596 892,208 364,531
2011 2q 121,782,826 2,027,054 137,795 2,148,005 321,677 (527,677) 324,090 95,530,546
2011 1q 121,724,800 1,804,018 120,951 2,040,214 2,413 117,464 95,166,015
2010 4q 121,778,113 2,113,952 236,196 2,296,602 59,126 94,841,925
2010 3q 122,145,128 2,447,688 182,650 2,682,137 19,411 58,338 78,146 94,724,461
2010 2q 122,094,506 1,947,444 234,449 2,073,677 627,303 58,735 679,490 94,646,315
2010 1q 122,094,506 2,244,860 126,233 2,419,116 (688,765) 52,187 (714,805) 93,966,825
2009 4q 122,017,662 2,398,423 174,256 2,701,938 (251,620) (26,040) (310,868) 94,681,630
2009 3q 121,977,569 2,321,716 303,515 2,502,976 (59,248) 94,992,498
2009 2q 121,778,125 2,008,422 181,260 2,298,061 7,373 30,512 37,885 94,954,613
2009 1q 121,176,988 2,171,936 289,639 2,325,510 (276,635) 43,724 (232,911) 95,187,524
2008 4q 120,934,078 2,318,131 153,574 2,563,947 (657,571) (99,730) (757,301) 95,944,825
2008 3q 120,608,708 2,884,394 245,816 3,043,490 369,369 (7,547) 361,822 95,583,003
2008 2q 120,373,532 2,901,379 159,096 3,076,015 134,620 50,368 184,988 95,398,015
2008 1q 119,646,952 3,382,277 174,636 3,585,905 479,329 479,608 94,918,407
118,918,473 203,628 925,616 279 866,510 94,051,897
995,788 (59,106) 1,118,364
122,576
Source: CoStar Property•
© 2011 CoStar Realty Information, Inc. The CoStar Office Rep www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
CLASS B
MARKET SHARE OF NET ABSORPTION
Net Absorption in Select Buildings
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000
Synergy Park - Building A-D
Browning Place II
Fuller Ridge I
Sherman Street Commons - A
1250 W Mockingbird Ln
Arbors at Brookhollow
Oil & Gas/Commerce Bldg
610 Uptown
Dorbet Bldg
Spring Valley Business Center - A
2795 Alta Mesa Blvd
Western Place I - West Tower
Preston Commons Bank Tower
Pitman Atrium Tower
Stadium Place
Cedar Springs Plaza
Northeast 820 Business Tower I
689 Airport Fwy
Preston at McCallum
Premier Center Phase I
6500 International Pky
8235 Douglas
OConnor Ridge
550 Bailey Ave
144 Ross, Suite 2600 Ave
Total Net Absorption
Building Name Submarket RBA Vacant SF 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD Total
Synergy Park - Building A-D Richardson/Plano 319,791 232,578 87,213 0 0 0 87,213
201,405 0 0 0 51,685 0 51,685
Browning Place II Las Colinas 180,421 47,026 0 49,206
38,865 359 40,766 1,821 0 40,766
Fuller Ridge I Las Colinas 40,766 0 0 (2,248) 0 0 40,636
125,924 35,685 0 35,557
Sherman Street Commons - A LBJ Freeway 114,421 35,661 730 (7,372) 42,154 0 32,349
439,802 48,352 (128) 8,107 0 0 27,155
1250 W Mockingbird Ln Stemmons Freeway 71,068 4,980 14,661 0 20,699
76,905 21,458 19,048 0 34,741 0 19,238
Arbors at Brookhollow Mid-Cities 168,841 60,509 13,434 15,843 0 0 15,843
10,000 19,238 0 0 15,036
Oil & Gas/Commerce Bldg Ft Worth CBD 29,238 5,496 (7,396) 0 14,802
15,843 0 0 (525) 0 0 14,269
610 Uptown Southwest Dallas 213,656 7,530 1,188 4,937 0 0 13,731
122,553 21,170 1,106 0 0 13,560
Dorbet Bldg Dallas CBD 182,963 16,133 5,022 9,691 13,848 0 13,070
84,287 17,732 4,220 0 8,200 0 13,067
Spring Valley Business Center - A Richardson/Plano 112,371 0 9,772 0 13,065
57,256 0 0 0 4,574 0 12,932
2795 Alta Mesa Blvd South Ft Worth 20,319 23,097 884 20,258 0 10,800
31,221 4,597 13,560 0 10,765
Western Place I - West Tower South Ft Worth 30,081 7,252 0 (8,840) 2,495 0 10,628
117,194 770 2,437 5,688 0 10,396
Preston Commons Bank Tower Preston Center 161,843 9,163 0 13,067 0 10,200
126,590 2,816 193,770 10,628 0 596,668
Pitman Atrium Tower Richardson/Plano 122,834 16,656 0 130,320 0 209,417
23,750 13,280 3,383 324,090 3,769 0 806,085
Stadium Place Mid-Cities 3,120,275 13,818 8,204 (9,458)
118,662,551 23,341 7,324 2,785
Cedar Springs Plaza Uptown/Turtle Creek 121,782,826 1,300 11,264
0 189,105 (2,616)
Northeast 820 Business Tower I Northeast Ft Worth 682,086 (71,641) 8,900
25,570,194 117,464 213,793
689 Airport Fwy Mid-Cities 26,252,280 150,738
364,531
Preston at McCallum Far North Dallas
Premier Center Phase I Las Colinas
6500 International Pky Far North Dallas
8235 Douglas Preston Center
OConnor Ridge Las Colinas
550 Bailey Ave South Ft Worth
144 Ross, Suite 2600 Ave Dallas CBD
Subtotal Primary Competitors
Remaining Dallas/Ft Worth Class "B" Market
Total Dallas/Ft Worth Class "B" Market
Source: CoStar Property®
© 2004 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
CLASS C
ABSORPTION ANALYSIS
Overall Net Absorption
200,000 Absorption Vacancy Average Absorption 17.00%
150,000 2008 4q 2009 1q 2009 4q 2010 1q 2010 4q 2011 1q 2011 2q
100,000 16.50%
50,000 16.00%
0
15.50%
(50,000)
(100,000) 15.00%
(150,000)
(200,000) 14.50%
(250,000)
(300,000) 14.00%
13.50%
2008 3q 2009 2q 2009 3q 2010 2q 2010 3q 2011 3q
Source: CoStar Property•
Markets Ranked by Net Absorption Direct, Sublet Absorption
Existing YTD Net Absorption Direct SF Sublet SF
Inventory 0.30
Market Rank SF
Stemmons Freeway 4,876,851
Dallas CBD 3,093,286 1 45,957 0.20
Ft Worth CBD
Mid-Cities 504,132 2 22,103
LBJ Freeway 3,058,800
Las Colinas 3 3,800 Millions of SF 0.10
Far North Dallas 974,608
North Fort Worth 713,038 4 2,247 0.00
Northeast Ft Worth 580,351
Central Expressway 242,798 5 1,834 (0.10)
345,030
662,251 6 (721)
7 (1,192) (0.20)
8 (1,700) (0.30)
2008
9 (2,835) 3q 2009 2009 2010 2010 2011 2011
1q 3q 1q 3q 1q 3q
10 (5,510)
Source: CoStar Property• Source: CoStar Property•
Historical Analysis
Period Existing Direct Gross Absorption Total Direct Net Absorption Total Occupied
Inventory Sublet Sublet SF
2011 3q 166,669 169,193 (12,709) (13,293)
2011 2q 22,697,507 176,604 2,524 185,375 (54,618) (584) (48,681) 19,008,088
2011 1q 22,697,507 137,467 8,771 146,216 (25,361) 5,937 (28,785) 19,021,381
2010 4q 22,697,507 201,969 8,749 220,765 (94,686) (3,424) (80,667) 19,070,062
2010 3q 22,697,507 223,564 18,796 241,448 (18,273) 14,019 19,098,847
2010 2q 22,697,507 370,006 17,884 370,404 56,315 12,090 (6,183) 19,179,514
2010 1q 22,697,507 388,851 404,308 189,926 (4,933) 51,382 19,185,697
2009 4q 22,697,507 228,753 398 234,362 (269,924) (17,588) 172,338 19,134,315
2009 3q 22,697,507 247,078 15,457 247,078 50,114 5,609 (264,315) 18,961,977
2009 2q 22,697,507 157,473 162,055 (132,550) (17,236) 32,878 19,226,292
2009 1q 22,697,507 142,982 5,609 148,460 (33,149) (729) (133,279) 19,193,414
2008 4q 22,697,507 143,540 0 147,686 (78,614) 1,406 (31,743) 19,326,693
2008 3q 22,727,796 270,105 279,333 (102,662) 3,427 (75,187) 19,358,436
2008 2q 22,727,796 240,779 4,582 245,604 3,583 (99,079) 19,433,623
2008 1q 22,727,796 242,459 5,478 242,459 9,878 (1,327) 19,532,702
22,727,796 4,146 12,449 (3,181) 8,551 19,524,151
9,228 9,268
4,825
0
Source: CoStar Property•
© 2011 CoStar Realty Information, Inc. The CoStar Office Rep www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
CLASS C
MARKET SHARE OF NET ABSORPTION
Net Absorption in Select Buildings
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000
2727 Inwood Rd - Phase I
1120 Empire Central Pl
Houseman Building
4001 E Mckinney St
Regal Gardens Office Ctr - Bldg C
Comerica Bank Bldg
Walnut Hill Court
Valpark Place B
14330 Midway Rd - Building I
Shady Oaks Office Center
The Goodyear Building
800 Kirnwood Dr
Bryden Professional Plaza - Bldg 1
855 Texas St
North Point Plaza
Katy Building
Custer Office Park - Bldg 2
Elmbrook Medical Center
Richardson Prof. Park - Building 1
MacArthur Mills Center - Bldg 2
824 Exposition Ave
Seville Square
Vangard School
Coca-Cola Bldg
The Brewery
Total Net Absorption
Building Name Submarket RBA Vacant SF 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD Total
2727 Inwood Rd - Phase I Stemmons Freeway 30,881 0 0 30,720 0 0 30,720
23,000 0 0 22,998 0 0 22,998
1120 Empire Central Pl Stemmons Freeway 45,727 0 22,800 0 0 22,800
16,000 0 0 0 16,000 0 16,000
Houseman Building Dallas CBD 59,776 35,262 0 0 0 0 13,836
77,000 1,348 4,504 13,836 5,254 0
4001 E Mckinney St Lewisville/Denton 18,000 8,000 0 (696) 8,000 0 9,062
30,946 0 0 0 0 0 8,000
Regal Gardens Office Ctr - Bldg C Stemmons Freeway 18,677 3,411 0 7,129 742 0 7,129
53,046 9,300 0 6,212 6,200 0 6,954
Comerica Bank Bldg Richardson/Plano 42,000 0 (2,670) 0 0 0 6,200
80,232 0 0 8,070 4,450 0 5,400
Walnut Hill Court Las Colinas 24,493 1,172 (16) 0 3,013 0 4,450
21,961 0 3,800 1,033 0 0 4,030
Valpark Place B Lewisville/Denton 40,958 19,269 0 0 (801) 0 3,800
57,600 21,839 0 4,363 3,435 0 3,562
14330 Midway Rd - Building I Far North Dallas 20,268 4,537 (5) 0 510 0 3,435
45,000 0 0 2,797 3,050 0 3,302
Shady Oaks Office Center Lewisville/Denton 16,577 3,638 0 0 675 0 3,050
30,848 0 (200) 2,197 3,500 0 2,872
The Goodyear Building East Dallas 22,000 0 0 (600) 0 0 2,700
17,739 3,200 0 2,520 2,400 0 2,520
800 Kirnwood Dr Southwest Dallas 17,600 0 0 0 2,000 0 2,400
31,356 18,518 1,986 100 0 0 2,100
Bryden Professional Plaza - Bldg 1 Lewisville/Denton 143,285 19,865 1,758 (7) 0 0 1,979
984,970 149,359 31,957 0 58,428 0 1,758
855 Texas St Ft Worth CBD 21,712,537 3,540,060 (60,742) 100,672 (71,721) 0 191,057
22,697,507 3,689,419 (28,785) (149,353) (13,293) 0 (281,816)
North Point Plaza Lewisville/Denton (48,681) (90,759)
Katy Building Dallas CBD
Custer Office Park - Bldg 2 Richardson/Plano
Elmbrook Medical Center Stemmons Freeway
Richardson Prof. Park - Building 1 Richardson/Plano
MacArthur Mills Center - Bldg 2 Lewisville/Denton
824 Exposition Ave East Dallas
Seville Square East Dallas
Vangard School Far North Dallas
Coca-Cola Bldg Dallas CBD
The Brewery Dallas CBD
Subtotal Primary Competitors
Remaining Dallas/Ft Worth Class "C" Market
Total Dallas/Ft Worth Class "C" Market
Source: CoStar Property®
© 2004 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com
BuildingInventory
THIRD-QUARTER 2011
The Dallas/Ft Worth Office Market
Third Quarter 2011
Dallas/Ft Worth Office Market
C L A S S A,B&C
INVENTORY ANALYSIS
Deliveries vs Construction Starts
Delivered SF Const Starts Avg Del SF
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q
Source: CoStar Property•
Markets Ranked by Inventory Under Construction SF
Existing Inventory % of Class A,B&C 7.00
Market SF Rank Inventory Vacancy
Far North Dallas
Dallas CBD 38,638,067 1 18% 17.7% 6.00
Las Colinas
Richardson/Plano 29,691,346 2 14% 31.5% 5.00
LBJ Freeway
Mid-Cities 29,630,839 3 17% 20.9% 4.00
Stemmons Freeway
Central Expressway 22,909,613 4 16% 25.6% 3.00
Uptown/Turtle Creek
Ft Worth CBD 21,268,414 5 18% 24.6%
20,807,277 6 22% 19.3% 2.00
17,118,247 7 5% 21.9% 1.00
14,465,148 8 3% 16.5% 0.00
10,903,110 9 1% 19.1% 2008 2009 2009 2010 2010 2011 2011
3q 1q 3q 1q 3q 1q 3q
9,679,996 10 1% 12.6%
Source: CoStar Property• Source: CoStar Property•
Historical Analysis
Existing Inventory Vacancy Delivered Inventory UC Inventory Construction
% Total RBA Starts
Period # Bldgs Total RBA # Bldgs Total RBA Avg Bld # Bldgs Avg Bld
20.9% 723,543 153,990
2011 3q 2,627 248,113,349 21.2% 3 58,026 19,342 10 627,579 72,354 113,700
2011 2q 21.1% 8 645,169 78,447 190,253
2011 1q 2,624 248,055,323 21.4% 3 131,290 43,763 533,583 64,517 341,073
2010 4q 21.7% 10 309,951 59,287
2010 3q 2,623 248,036,636 22.3% 3 78,667 26,222 9 268,108 38,744 41,843
2010 2q 22.0% 8 610,976 44,685 95,500
2010 1q 2,621 248,374,969 21.2% 2 117,441 58,720 6 1,613,544 76,372 87,525
2009 4q 21.0% 8 1,963,015 179,283 73,115
2009 3q 2,619 248,257,528 20.5% 0 00 9 3,264,221 151,001 16,138
2009 2q 19.8% 3,883,378 120,897 61,734
2009 1q 2,619 248,257,528 19.8% 4 438,368 109,592 13 4,908,507 117,678 127,609
2008 4q 19.6% 27 6,096,053 111,557 356,695
2008 3q 2,615 247,819,160 19.5% 3 1,090,093 363,364 33 6,454,567 132,523 448,066
2008 2q 19.6% 44 6,903,116 126,560 914,693
2008 1q 2,612 246,729,067 6 422,586 70,431 46 113,166 8,792,532
51
2,607 246,343,739 15 1,317,344 87,823 61
2,592 245,026,395 9 680,891 75,655
2,583 244,345,504 15 1,152,738 76,849
2,569 243,223,055 11 1,544,241 140,386
2,560 241,765,475 11 806,580 73,325
2,549 240,958,895 23 1,363,242 59,271
2,526 239,595,653 22 1,889,416 85,883
Source: CoStar Property•
© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
CLASS A
INVENTORY ANALYSIS
Deliveries vs Construction Starts
Delivered SF Const Starts Avg Del SF
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q
2008 3q
Source: CoStar Property•
Markets Ranked by Inventory Under Construction SF
Existing Inventory % of Class A 5.00
Inventory Vacancy 4.50
Market SF Rank 4.00
Dallas CBD 3.50
Far North Dallas 20,354,870 1 21% 26.2% 3.00
Las Colinas 2.50
LBJ Freeway 19,097,959 2 19% 17.7% 2.00
Uptown/Turtle Creek 1.50
Central Expressway 14,254,931 3 18% 20.8% 1.00
Richardson/Plano 0.50
Ft Worth CBD 9,672,484 4 16% 24.8% 0.00
Mid-Cities
Stemmons Freeway 8,047,829 5 18% 20.8%
7,600,377 6 21% 19.2%
7,044,042 7 5% 27.9%
5,400,475 8 2% 4.8%
3,996,084 9 1% 23.3% 2008 2009 2009 2010 2010 2011 2011
3q 1q 3q 1q 3q 1q 3q
3,422,968 10 1% 25.6%
Source: CoStar Property• Source: CoStar Property•
Historical Analysis
Existing Inventory Vacancy Delivered Inventory UC Inventory Construction
% Total RBA Starts
Period # Bldgs Total RBA # Bldgs Total RBA Avg Bld # Bldgs Avg Bld
21.1% 613,223 60,000
2011 3q 379 103,633,016 21.5% 0 00 5 553,223 122,645 113,700
2011 2q 21.1% 4 511,523 138,306 157,923
2011 1q 379 103,633,016 21.3% 1 72,000 72,000 4 382,282 127,881 281,600
2010 4q 22.2% 3 167,501 127,427
2010 3q 378 103,561,016 22.9% 1 28,682 28,682 3 167,501 0
2010 2q 22.8% 3 457,025 55,834 72,000
2010 1q 377 103,532,334 21.1% 1 66,819 66,819 3 1,440,206 55,834 66,819
2009 4q 21.1% 3 1,626,090 152,342
2009 3q 376 103,465,515 20.4% 0 00 5 2,342,297 480,069 0
2009 2q 19.9% 9 2,751,596 325,218 0
2009 1q 376 103,465,515 19.7% 1 361,524 361,524 11 3,578,964 260,255 28,682
2008 4q 19.3% 17 4,709,368 250,145 0
2008 3q 375 103,103,991 19.3% 1 1,050,000 1,050,000 20 4,690,368 210,527 92,000
2008 2q 19.2% 20 5,110,681 235,468 99,000
2008 1q 374 102,053,991 2 185,884 92,942 22 234,518 214,450
232,304 5,437,038
372 101,868,107 4 716,207 179,052
368 101,151,900 3 437,981 145,994
365 100,713,919 6 827,368 137,895
359 99,886,551 4 1,222,404 305,601
355 98,664,147 1 80,000 80,000
354 98,584,147 4 634,763 158,691
350 97,949,384 2 326,357 163,178
Source: CoStar Property•
© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
CLASS B
INVENTORY ANALYSIS
Deliveries vs Construction Starts
Delivered SF Const Starts Avg Del SF
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q
2008 3q
Source: CoStar Property•
Markets Ranked by Inventory Under Construction SF
Existing Inventory % of Class B 1.60
Inventory Vacancy
Market SF Rank 1.40
Far North Dallas
Las Colinas 18,959,757 1 18% 17.9% 1.20
Richardson/Plano
Mid-Cities 14,662,870 2 14% 21.6%
LBJ Freeway
Stemmons Freeway 13,987,660 3 16% 25.7% 1.00
South Ft Worth
Dallas CBD 13,752,393 4 19% 18.6% 0.80
Central Expressway
Lewisville/Denton 10,621,322 5 18% 26.0% 0.60
8,818,428 6 20% 29.5% 0.40
6,263,971 7 4% 11.9% 0.20
6,243,190 8 2% 40.7% 0.00
6,202,520 9 2% 14.3% 2008 2009 2009 2010 2010 2011 2011
3q 1q 3q 1q 3q 1q 3q
6,015,310 10 1% 22.4%
Source: CoStar Property• Source: CoStar Property•
Historical Analysis
Existing Inventory Vacancy Delivered Inventory UC Inventory Construction
% Total RBA Starts
Period # Bldgs Total RBA # Bldgs Total RBA Avg Bld # Bldgs Avg Bld
21.6% 110,320 93,990
2011 3q 1,733 121,782,826 21.8% 3 58,026 19,342 5 74,356 22,064 0
2011 2q 22.1% 4 18,589
2011 1q 1,730 121,724,800 22.4% 2 59,290 29,645 6 133,646 22,274 32,330
2010 4q 22.5% 6 151,301 25,217 59,473
2010 3q 1,730 121,778,113 23.0% 2 49,985 24,992 5 142,450 28,490 41,843
2010 2q 22.4% 3 100,607 33,536 23,500
2010 1q 1,729 122,145,128 22.1% 1 50,622 50,622 5 153,951 30,790 20,706
2009 4q 22.0% 6 173,338 28,890 73,115
2009 3q 1,728 122,094,506 21.4% 0 00 8 336,925 42,116 16,138
2009 2q 20.7% 18 921,924 51,218 33,052
2009 1q 1,728 122,094,506 20.7% 3 76,844 25,615 22 1,131,782 51,445 127,609
2008 4q 20.7% 27 1,329,543 49,242 264,695
2008 3q 1,725 122,017,662 20.7% 2 40,093 20,046 26 1,386,685 53,334 349,066
2008 2q 20.9% 31 1,764,199 56,910 700,243
2008 1q 1,723 121,977,569 4 236,702 59,175 39 1,792,435 45,960 3,355,494
1,720 121,778,125 11 601,137 54,649
1,709 121,176,988 6 242,910 40,485
1,703 120,934,078 9 325,370 36,152
1,694 120,608,708 7 321,837 45,977
1,689 120,373,532 10 726,580 72,658
1,679 119,646,952 19 728,479 38,341
1,660 118,918,473 20 1,563,059 78,153
Source: CoStar Property•
© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com
Third Quarter 2011
Dallas/Ft Worth Office Market
CLASS C
INVENTORY ANALYSIS
Deliveries vs Construction Starts
Delivered SF Const Starts Avg Del SF
1 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q
1
1
1
1
1
0
0
0
0
0
2008 3q
Source: CoStar Property•
Markets Ranked by Inventory Under Construction SF
Existing Inventory % of Class C 0.00
Inventory Vacancy 0.00
Market SF Rank 0.00
Stemmons Freeway 0.00
Dallas CBD 4,876,851 1 25% 5.7% 0.00
Mid-Cities 0.00
Richardson/Plano 3,093,286 2 16% 48.0% 0.00
South Ft Worth 0.00
East Dallas 3,058,800 3 21% 17.1% 0.00
Lewisville/Denton 0.00
LBJ Freeway 1,877,911 4 16% 16.2% 0.00
Las Colinas
Southwest Dallas 1,754,174 5 20% 13.9%
1,729,145 6 25% 10.7%
983,234 7 4% 14.9%
974,608 8 2% 8.6%
713,038 9 1% 8.8% 2008 2009 2009 2010 2010 2011 2011
3q 1q 3q 1q 3q 1q 3q
672,583 10 1% 10.0%
Source: CoStar Property• Source: CoStar Property•
Historical Analysis
Existing Inventory Vacancy Delivered Inventory UC Inventory Construction
% Total RBA Starts
Period # Bldgs Total RBA # Bldgs Total RBA Avg Bld # Bldgs Avg Bld
16.3% 0 0
2011 3q 515 22,697,507 16.2% 0 00 0 0 0 0
2011 2q 16.0% 0 0 0 0
2011 1q 515 22,697,507 15.9% 0 00 0 0 0 0
2010 4q 15.5% 0 0 0 0
2010 3q 515 22,697,507 15.5% 0 00 0 0 0 0
2010 2q 15.7% 0 0 0 0
2010 1q 515 22,697,507 16.5% 0 00 0 0 0 0
2009 4q 15.3% 0 0 0 0
2009 3q 515 22,697,507 15.4% 0 00 0 0 0 0
2009 2q 14.9% 0 0 0 0
2009 1q 515 22,697,507 14.8% 0 00 0 0 0 0
2008 4q 14.5% 0 0 0 0
2008 3q 515 22,697,507 14.1% 0 00 0 0 0 0
2008 2q 14.1% 0 0 0 0
2008 1q 515 22,697,507 0 00 0 0
515 22,697,507 0 00
515 22,697,507 0 00
515 22,697,507 0 00
516 22,727,796 0 00
516 22,727,796 0 00
516 22,727,796 0 00
516 22,727,796 0 00
Source: CoStar Property•
© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com
DevelopmentActivity
THIRD-QUARTER 2011
The Dallas/Ft Worth Office Market
Third Quarter 2011 F
Dallas/Ft Worth Office Market
DEVELOPMENT
Year-to-Date Deliveries Third Quarter 2011
Building Name Delivery Date Class RBA Rate Marketing Company
Building Address Height Avail SF Leased Development Company
THE CENTRAL EXPRESSWAY OFFICE MARKET
Baylor Outpatient Cancer Center First Quarter 2011 A 28,682 $0.00 BremnerDuke Healthcare
3410 Worth St Avail SF: 23,919
A Totals / Avgs 1 Flr 23,919 17%
CENTRAL EXPRESSWAY Totals / Avgs 1 Building 28,682 17%
1 BUILDING 28,682 17% AVAIL SF: 23,919
THE FAR NORTH DALLAS OFFICE MARKET
N. Dallas Surgical & Medical Office Bldg Third Quarter 2011 B 16,026 $0.00 North Dallas Mob Realty Llc
17980 Dallas Pky Avail SF: 16,026
B Totals / Avgs 1 Flr 16,026 0%
FAR NORTH DALLAS Totals / Avgs 1 Building 16,026 0%
1 BUILDING 16,026 0% AVAIL SF: 16,026
THE LAS COLINAS OFFICE MARKET
1900 Enchanted Way First Quarter 2011 B 26,485 $0.00 Bradford Companies
1900 Enchanted Way 0% Avail SF: 26,484
B Totals / Avgs 2 Flrs 26,484
0%
LAS COLINAS Totals / Avgs 1 Building 26,485
1 BUILDING 26,485 0% AVAIL SF: 26,484
THE LBJ FREEWAY OFFICE MARKET
Forest Park Medical Office Building Second Quarter 2011 A 72,000 $0.00 Neal Richards Group
12222 N Central Expy 75% Avail SF: 18,000
A Totals / Avgs 4 Flrs 18,000
75%
LBJ FREEWAY Totals / Avgs 1 Building 72,000
1 BUILDING 72,000 75% AVAIL SF: 18,000
THE LEWISVILLE/DENTON OFFICE MARKET
225 E Hwy 121 First Quarter 2011 B 23,500 $30.39 Crestone Realty, LLC
225 E Hwy 121
5000 Long Prairie Rd 1 Flr 7,702 67% Stream Realty Partners, L.P.
5000 Long Prairie Rd Stream Realty Partners, L.P.
B Totals / Avgs Second Quarter 2011 B 43,447 $30.39 Avail SF: 26,075
LEWISVILLE/DENTON Totals / Avgs 2 Flrs 18,373 58%
2 Buildings 66,947 61%
2 BUILDINGS 66,947 61% AVAIL SF: 26,075
THE MID-CITIES OFFICE MARKET
2425 S Hwy 121 Third Quarter 2011 B 26,000 $0.00 Glacier Commercial Realty L.P.
2425 S Hwy 121 60% Avail SF: 10,500
B Totals / Avgs 2 Flrs 10,500
60%
MID-CITIES Totals / Avgs 1 Building 26,000
1 BUILDING 26,000 60% AVAIL SF: 10,500
THE RICHARDSON/PLANO OFFICE MARKET
Eagle Crossing II Third Quarter 2011 B 16,000 $26.50 Brown & Griffin Real Estate Advisors LLP
821 N Coleman Blvd Avail SF: 11,000
1 Flr 11,000 31%
B Totals / Avgs
1 Building 16,000 31%
© 2011 CoStar Realty Information, Inc. www.costargroup.com
Third Quarter 2011 F
Dallas/Ft Worth Office Market
DEVELOPMENT
Year-to-Date Deliveries Third Quarter 2011
Building Name Delivery Date Class RBA Rate Marketing Company
Building Address Height Avail SF Leased Development Company
THE RICHARDSON/PLANO OFFICE MARKET
RICHARDSON/PLANO Totals / Avgs 1 BUILDING 16,000 31% AVAIL SF: 11,000
THE SOUTH FT WORTH OFFICE MARKET
2795 Alta Mesa Blvd Second Quarter 2011 B 15,843 $0.00
2795 Alta Mesa Blvd 100%
B Totals / Avgs 1 Flr 0
100%
SOUTH FT WORTH Totals / Avgs 1 Building 15,843 Avail SF: 0
0
1 BUILDING 15,843 100% AVAIL SF:
THE DALLAS/FT WORTH OFFICE MARKET
Office Market # Bldgs Avg RBA Available %
Size SF Leased
CLASS "A" SECTOR 100,682
CLASS "B" SECTOR 2 BUILDINGS 50,341 167,301 41,919 58%
CLASS "C" SECTOR 7 BUILDINGS 23,900 90,085 46%
TOTAL OFFICE MARKET 0 BUILDING 0
9 BUILDINGS 0 267,983 0 0%
29,776 132,004 51%
© 2011 CoStar Realty Information, Inc. www.costargroup.com
Third Quarter 2011 F
Dallas/Ft Worth Office Market
DEVELOPMENT
Year-to-Date Deliveries by Quarter Third Quarter 2011
Building Name Building Address Office Market Type Total RBA Delivered
Speedway Town Center Medical 1 I-35 W North Fort Worth B 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Speedway Town Center Medical 2 I-35 W North Fort Worth B 0
Baylor Outpatient Cancer Center 3410 Worth St Central Expressway A 70,000 72,000 43,514
1900 Enchanted Way 1900 Enchanted Way Las Colinas B 48,000 43,447 26,000
225 E Hwy 121 225 E Hwy 121 Lewisville/Denton B 28,682 15,843 18,254
Forest Park Medical Office Building 12222 N Central Expy LBJ Freeway A 26,485 17,859
5000 Long Prairie Rd 5000 Long Prairie Rd Lewisville/Denton B 23,500 16,026
2795 Alta Mesa Blvd 2795 Alta Mesa Blvd South Ft Worth B 16,000
6675 Mediterranean St 6675 Mediterranean St Richardson/Plano B
2425 S Hwy 121 2425 S Hwy 121 Mid-Cities B
6617 Mediterranean St 6617 Mediterranean St Richardson/Plano B
6601 Mediterranean St 6601 Mediterranean St Richardson/Plano B
N. Dallas Surgical & Medical Office Bldg 17980 Dallas Pky Far North Dallas B
Eagle Crossing II 821 N Coleman Blvd Richardson/Plano B
2011 Delivery Totals 196,667 131,290 137,653
© 2011 CoStar Realty Information, Inc. www.costar.com
Third Quarter 2011 F
Dallas/Ft Worth Office Market
DEVELOPMENT
Under Construction Projects Third Quarter 2011
Building Name Delivery Date Class RBA Rate Marketing Company
Building Address Height Avail SF Leased Development Company
THE FAR NORTH DALLAS OFFICE MARKET
HQ of Encana Oil & Gas Second Quarter 2012 A 281,600 $0.00 Kdc Legacy North Invs I Lp
5851 Legacy Cir
A Totals / Avgs 12 Flrs 0 100%
FAR NORTH DALLAS Totals / Avgs 1 Building 281,600 100% Avail SF: 0
1 BUILDING 281,600 100% AVAIL SF: 0
THE LEWISVILLE/DENTON OFFICE MARKET
River Walk Medical Park - Phase 1 Fourth Quarter 2011 A 82,923 $30.27 Flower Mound Group R & E Corp
2550 Medical Arts Way Avail SF: 55,000
A Totals / Avgs 3 Flrs 55,000 34%
Medical Village At Flower Mound 1 Building 82,923 34%
4921 Long Prairie Rd
B Totals / Avgs Fourth Quarter 2011 B 17,900 $31.39 Wynmark Commercial
1 Building 1 Flr 4,400 75%
LEWISVILLE/DENTON Totals / Avgs
17,900 75% Avail SF: 4,400
2 BUILDINGS 100,823 41% AVAIL SF: 59,400
THE MID-CITIES OFFICE MARKET
& Bourland Road First Quarter 2012 B 30,800 $30.89 Caddis Partners
100 Bourland Rd 35% Texas Health Resources
120 Miller Rd 1 Flr 20,000
120 Miller Rd $0.00 Avail SF: 20,000
505 S Nolen Dr Fourth Quarter 2011 B 16,330 100%
505 S Nolen Dr
B Totals / Avgs 1 Flr 0 $0.00
100%
MID-CITIES Totals / Avgs First Quarter 2012 B 15,000
68%
1 Flr 0
3 Buildings 62,130
3 BUILDINGS 62,130 68% AVAIL SF: 20,000
THE NORTH FORT WORTH OFFICE MARKET
Texas Health Alliance Medical Office Building First Quarter 2012 A 75,000 $0.00 Cambridge Healthcare Properties
I 35 W & Golden Triangle Blvd Avail SF: 75,000
A Totals / Avgs 1 Flr 75,000 0%
NORTH FORT WORTH Totals / Avgs 1 Building 75,000 0%
1 BUILDING 75,000 0% AVAIL SF: 75,000
THE RICHARDSON/PLANO OFFICE MARKET
Baylor McKinney Medical Office Building Third Quarter 2012 A 113,700 $30.06 BremnerDuke Healthcare
5236 W University Dr Avail SF: 40,475
A Totals / Avgs 4 Flrs 40,475 64%
RICHARDSON/PLANO Totals / Avgs 1 Building 113,700 64%
1 BUILDING 113,700 64% AVAIL SF: 40,475
THE SOUTH FT WORTH OFFICE MARKET
Rosedale St & Forest Park Blvd Third Quarter 2012 A 60,000 $28.27 MSL Real Estate Services
Rosedale St & Forest Park Blvd Avail SF: 60,000
A Totals / Avgs 3 Flrs 60,000 0%
SOUTH FT WORTH Totals / Avgs 1 Building 60,000 0%
1 BUILDING 60,000 0% AVAIL SF: 60,000
© 2011 CoStar Realty Information, Inc. www.costargroup.com
Third Quarter 2011 F
Dallas/Ft Worth Office Market
DEVELOPMENT
Under Construction Projects Third Quarter 2011
Building Name Delivery Date Class RBA Rate Marketing Company
Building Address Height Avail SF Leased Development Company
THE SOUTHWEST DALLAS OFFICE MARKET
3920 Wheatland Dr Fourth Quarter 2011 B 30,290 $30.14 Caddis Partners
3920 Wheatland Dr
B Totals / Avgs 1 Flr 4,545 85%
SOUTHWEST DALLAS Totals / Avgs 1 Building 30,290 85% Avail SF: 4,545
1 BUILDING 30,290 85% AVAIL SF: 4,545
THE DALLAS/FT WORTH OFFICE MARKET
Office Market # Bldgs Avg RBA Available %
Size SF Leased
CLASS "A" SECTOR 613,223
CLASS "B" SECTOR 5 BUILDINGS 122,645 110,320 230,475 62%
CLASS "C" SECTOR 5 BUILDINGS 22,064 28,945 74%
TOTAL OFFICE MARKET 0 BUILDING 0 0 0
10 BUILDINGS 723,543 0%
72,354 259,420 64%
© 2011 CoStar Realty Information, Inc. www.costargroup.com
Third Quarter 2011 (Owner-Occupied) F
Dallas/Ft Worth Office Market
DEVELOPMENT
Under Construction Projects Third Quarter 2011 (Owner-Occupied)
Building Name Delivery Date Class RBA Rate Marketing Company
Building Address Height Avail SF Leased Development Company
THE LEWISVILLE/DENTON OFFICE MARKET
2 Ridgemont Dr First Quarter 2012 B 33,000 $0.00 Genusys Inc
2 Ridgemont Dr Avail SF:
B Totals / Avgs 3 Flrs 0 100%
LEWISVILLE/DENTON Totals / Avgs 1 Building 33,000 100% 0
0
1 BUILDING 33,000 100% AVAIL SF:
THE RICHARDSON/PLANO OFFICE MARKET
Stacy Rd Fourth Quarter 2012 B 100,000 $0.00 Traxxas LP
Stacy Rd Avail SF:
B Totals / Avgs 3 Flrs 0 100%
RICHARDSON/PLANO Totals / Avgs 1 Building 100,000 100% 0
0
1 BUILDING 100,000 100% AVAIL SF:
THE DALLAS/FT WORTH OFFICE MARKET
Office Market # Bldgs Avg RBA Available %
Size SF Leased
CLASS "A" SECTOR 0
CLASS "B" SECTOR 0 BUILDING 0 133,000 0 0%
CLASS "C" SECTOR 2 BUILDINGS 66,500 0 100%
TOTAL OFFICE MARKET 0 BUILDING 0 0
2 BUILDINGS 0 133,000 0 0%
66,500 100%
© 2011 CoStar Realty Information, Inc. www.costargroup.com
Third Quarter 2011
Dallas/Ft Worth Office Market
DEVELOPMENT
Future Deliveries by Quarter*Third Quarter 2011
Building Name Building Address Office Market Type Total RBA To Be Delivered
1st Qtr
2nd Qtr 3rd Qtr 4th Qtr
POTENTIAL 2011 DELIVERIES
River Walk Medical Park - Phase 1 2550 Medical Arts Way Lewisville/Denton A 82,923
3920 Wheatland Dr B 30,290
Medical Village At Flower Mound 3920 Wheatland Dr Southwest Dallas B 17,900
120 Miller Rd B 16,330
4921 Long Prairie Rd Lewisville/Denton
2011 Delivery Totals 0 0 0 147,443
120 Miller Rd Mid-Cities
POTENTIAL 2012 DELIVERIES
Texas Health Alliance Medical Office Building I 35 W & Golden Triangle Blvd North Fort Worth A 75,000
& Bourland Road B 30,800
505 S Nolen Dr 100 Bourland Rd Mid-Cities B 15,000
HQ of Encana Oil & Gas A 281,600
Baylor McKinney Medical Office Building 505 S Nolen Dr Mid-Cities A 113,700
Rosedale St & Forest Park Blvd A 60,000
5851 Legacy Cir Far North Dallas
2012 Delivery Totals 120,800 281,600 173,700
5236 W University Dr Richardson/Plano
Rosedale St & Forest Park Blvd South Ft Worth
0
* Based on projects currently under construction. www.costargroup.com
© 2011 CoStar Realty Information, Inc.
Third Quarter 2011
Dallas/Ft Worth Office Market
DEVELOPMENT
Future Deliveries by Quarter*Third Quarter 2011
Building Name Building Address Office Market Type Total RBA To Be Delivered
1st Qtr
2nd Qtr 3rd Qtr 4th Qtr
POTENTIAL 2012 DELIVERIES (OWNER-OCCUPIED)
2 Ridgemont Dr 2 Ridgemont Dr Lewisville/Denton B 33,000
Stacy Rd
Stacy Rd Richardson/Plano B 100,000
2012 Delivery Totals
33,000 0 0 100,000
* Based on projects currently under construction. www.costargroup.com
© 2011 CoStar Realty Information, Inc.
Third Quarter 2011 F
Dallas/Ft Worth Office Market
DEVELOPMENT
Proposed Projects Third Quarter 2011 Class RBA Rate Marketing Company
Height Avail SF Development Company
Building Name Delivery Date
Building Address
THE CENTRAL EXPRESSWAY OFFICE MARKET
Park Lane Place TBD A 455,227 $0.00 Cassidy Turley
8000 Park Ln Harvest Partners
The Tower in The Glen at Preston Hollow 20 Flrs 455,227 The Weitzman Group
9701 Central Expy Provident Realty Advisors
A Totals / Avgs TBD A 120,000 $0.00 Avail SF: 455,227
CENTRAL EXPRESSWAY Totals / Avgs 10 Flrs 0 AVAIL SF: 455,227
2 Buildings 575,227
2 BUILDINGS 575,227
THE DALLAS CBD OFFICE MARKET
Two Arts Plaza TBD A 400,003 $0.00 Peloton Commercial Real Estate
1900 Routh St Billingsley Company
A Totals / Avgs 22 Flrs 399,997 Avail SF: 399,997
DALLAS CBD Totals / Avgs 1 Building 400,003 AVAIL SF: 399,997
1 BUILDING 400,003
THE EAST DALLAS OFFICE MARKET
Forney Medical Plaza - Phase II TBD A 51,000 $0.00 PM Realty Group
763 E US Highway 80
A Totals / Avgs 2 Flrs 42,500 $0.00 Avail SF: 42,500
$0.00
2900 Forest Ln 1 Building 51,000 Group Real Estate Services
2900 Forest Ln TFS & Sons, Ltd.
Shalem Park - Building 5 TBD B 36,000 Search Commercial, LLC
3405 N Beltline Rd TBD 1 Flr 36,000
B Totals / Avgs 25,136 Avail SF: 48,568
2 Buildings B 12,568
EAST DALLAS Totals / Avgs 2 Flrs AVAIL SF: 91,068
61,136
3 BUILDINGS 112,136
THE FAR NORTH DALLAS OFFICE MARKET
Centura Tower II TBD A 410,814 $0.00 Transwestern Dallas
14185 N Dallas Pky MJS REALTY, INC.
Granite Park V 15 Flrs 410,805 Granite Properties, Inc.
Dallas Pky N Granite Properties, Inc.
Legacy Dr & Hwy 121 TBD A 250,000 $0.00 Deaton Commercial
Legacy Dr & Hwy 121
Lincoln Legacy Two 10 Flrs 250,000 Lincoln Property Company
6000 Tennyson Pky
One Champions Park TBD A 349,573 $0.00 Cousins Properties Inc
State Highway 121 Cousins Properties Inc
Windhaven Place One 12 Flrs 349,573 Haggard Property Group, Ltd.
N Dallas & Windhaven Pky Haggard Property Group, Ltd.
TBD A 150,000 $0.00 Avail SF: 1,360,378
A Totals / Avgs
6 Flrs 150,000 CASE Commercial Real Estate Partners
1 Sports Village Dr
1 Sports Village Dr TBD A 200,000 $0.00 Accord Real Estate Advisors
2424 Parker Rd
2424 Parker Rd 8 Flrs 200,000 Peloton Commercial Real Estate
4120 Midway Billingsley Company
4120 Midway Rd TBD A 200,552 $0.00 Accord Real Estate Advisors
4814 Dozier Rd
4814 Dozier Rd 8 Flrs 0 Peloton Commercial Real Estate
4850 Hwy 121 Newmark Knight Frank
4850 Hwy 121 6 Buildings 1,560,939
5030 Tennyson Pky
5030 Tennyson Pky Fourth Quarter 2011 B 20,540 $0.00
Chapel Hill TBD 1 Flr 20,540 $0.00
Chapel Hill TBD 100,000 $0.00
First Quarter 2014 B 100,000 $0.00
First Quarter 2012 2 Flrs 130,002 $0.00
TBD 130,002 $0.00
TBD B 66,000 $0.00
3 Flrs 66,000
24,909
B
1 Flr 0
45,000
B 45,000
1 Flr 16,000
B 0
2 Flrs
B
2 Flrs
© 2011 CoStar Realty Information, Inc. www.costargroup.com
Third Quarter 2011 F
Dallas/Ft Worth Office Market
DEVELOPMENT
Proposed Projects Third Quarter 2011 Class RBA Rate Marketing Company
Height Avail SF Development Company
Building Name Delivery Date
Building Address
THE FAR NORTH DALLAS OFFICE MARKET CONT'D
Dallas North Tollway Second Quarter 2012 B 70,000 $0.00 The Weitzman Group
Dallas North Tollway Cencor Realty Services, Inc
Frisco Square 1 Flr 70,000 Jones Lang LaSalle
SE Main St Fairways Frisco Square
Granite Park IV TBD B 1,500,000 $0.00 Granite Properties, Inc.
N Dallas Pky Granite Properties, Inc.
Lakes On Tennyson 1 Flr 1,500,000 Search Commercial, LLC
5050 Tennyson St
NEC of Stonebrook & Parkwood Dr TBD B 100,000 $0.00 Caddis Partners
NEC of Stonebrook & Parkwood D
Palomino Crossing - Building A 10 Flrs 100,000 Cassidy Turley
Headquarters Dr Sealy & Co.
Palomino Crossing - Building B TBD B 22,566 $0.00 Cassidy Turley
Headquarters Dr Sealy & Co.
Palomino Crossing - Building C 2 Flrs 22,566 Cassidy Turley
Headquarters Dr Sealy & Co.
Palomino Crossing - Building D TBD B 17,000 $0.00 Cassidy Turley
Headquarters Dr Sealy & Co.
Parker Medical Center - Building A 1 Flr 17,000 Fults Commercial
Parker Rd Realty America Group
Parker Medical Center - Building B TBD B 170,000 $0.00 Fults Commercial
Parker Rd Realty America Group
PHASE II - MOB 3 Flrs 170,000 Lincoln Harris CSG
17101 N Dallas Pky
Preston Parc II TBD B 170,000 $0.00 John Bowles Company
7501 Preston Rd
Stewart Creek Office Center I 3 Flrs 170,000 Stream Realty Partners, L.P.
5740 Genesis Ct Omniplan
Stewart Creek Office Center V TBD B 180,000 $0.00 Stream Realty Partners, L.P.
5745 Genesis Ct
Stonebriar Commons on Legacy - Build To Suit 3 Flrs 180,000 Bradford Companies
Legacy Dr
The Shops at Starwood - Phase III - Office TBD B 20,000 $0.00 Starwood Investments
6959 Lebanon Rd
Tollway Plaza III 2 Flrs 0 Peloton Commercial Real Estate
15900 N Dallas Pky
White Rock Creek Professional Condo - Building 3 First Quarter 2012 B 50,000 $0.00 Wynmark Commercial
7709 San Jacinto Pl
2 Flrs 50,000 Avail SF: 3,366,882
B Totals / Avgs
First Quarter 2012 B 50,000 $0.00 AVAIL SF:4,727,260
2 Flrs 50,000
Third Quarter 2012 B 80,000 $0.00
4 Flrs 80,000
Third Quarter 2012 B 15,000 $0.00
2 Flrs 15,000
TBD B 150,000 $0.00
5 Flrs 150,000
TBD B 90,776 $0.00
3 Flrs 90,774
TBD B 60,000 $0.00
2 Flrs 60,000
TBD B 110,000 $0.00
4 Flrs 110,000
TBD B 135,000 $0.00
6 Flrs 135,000
First Quarter 2012 B 35,000 $0.00
1 Flr 35,000
26 Buildings 3,427,793
FAR NORTH DALLAS Totals / Avgs 32 BUILDINGS 4,988,732
THE LAS COLINAS OFFICE MARKET
700 Canyon Dr TBD A 102,000 $0.00 Myers & Crow Company, Ltd.
700 Canyon Dr
2 Flrs 102,000 $0.00 Avail SF: 102,000
A Totals / Avgs $0.00
1 Building 102,000 $0.00 PacTrust
Five Colinas Crossing $0.00 PacTrust
Royal Ln Fourth Quarter 2012 B 152,000 $0.00 Pacific Realty Associates, L.P.
Four Colinas Crossing Fourth Quarter 2012 3 Flrs 152,000 $0.00 PacTrust
11411 Luna Rd TBD 181,000 $0.00 Icon Partners, LLC
Icon Las Colinas Station TBD B 181,000 $0.00 Icon Partners, LLC
Riverside Dr TBD 6 Flrs 651,000 $0.00 Harwood International
Jetstar Place at 114 - Bldg A TBD 651,000 Harwood International
4151 W John Carpenter Fwy TBD B Harwood International
Jetstar Place at 114 - Bldg B TBD 11 Flrs 51,150 Harwood International
Jetstar Dr TBD 51,150 Harwood International
Jetstar Place at 114 - Bldg C B 100,000 Harwood International
Jetstar Dr 2 Flrs 100,000 Peloton Commercial Real Estate
Point West II 102,902
Beltline Rd B 102,902 Peloton Commercial Real Estate
Point West III 3 Flrs 127,300
Beltline Rd 127,300 Peloton Commercial Real Estate
Point West IV B 150,000
Beltline Rd 4 Flrs 150,000 www.costargroup.com
200,000
© 2011 CoStar Realty Information, Inc. B 200,000
1 Flr
B
1 Flr
B
1 Flr
Third Quarter 2011 F
Dallas/Ft Worth Office Market
DEVELOPMENT
Proposed Projects Third Quarter 2011 Class RBA Rate Marketing Company
Height Avail SF Development Company
Building Name Delivery Date
Building Address
THE LAS COLINAS OFFICE MARKET CONT'D
Royal Ridge Offices 4 TBD B 100,000 $0.00 Equity Office
Royal Ln W Equity Office
Royal Ridge Offices 6 3 Flrs 0 Equity Office
Royal Ln W Equity Office
Royal Ridge Offices 8 TBD B 100,000 $0.00 Equity Office
Royal Ln W Equity Office
Royal Ridge Offices 9 3 Flrs 0 Equity Office
Royal Ln W Equity Office
Royal Tech 18 TBD B 130,000 $0.00 PS Business Parks L.P.
2955 Regent Blvd
Six Colinas Crossing 2 Flrs 0 PacTrust
Royal Ln PacTrust
The Offices @ 161 and Walnut Hill - Phase II TBD B 130,000 $0.00 Stream Realty Partners, L.P.
State Hwy 161
Three Colinas Crossing 2 Flrs 0 PacTrust
11475 Luna Rd PacTrust
Three Hickory Centre TBD B 200,000 $0.00 Grubb & Ellis
1700 Valley View Ln Starr Realty Incorporated
1 Flr 200,000 Avail SF: 2,495,761
B Totals / Avgs
Fourth Quarter 2012 B 152,000 $0.00 AVAIL SF:2,597,761
LAS COLINAS Totals / Avgs
3 Flrs 152,000
TBD B 150,000 $0.00
3 Flrs 150,000
Third Quarter 2012 B 181,000 $0.00
6 Flrs 180,996
Third Quarter 2012 B 97,413 $0.00
4 Flrs 97,413
18 Buildings 2,955,765
19 BUILDINGS 3,057,765
THE LBJ FREEWAY OFFICE MARKET
Four Galleria Fourth Quarter 2012 A 251,389 $0.00 John Bowles Company
Noel Rd $0.00 Cousins Properties Inc
Four Lincoln Centre 8 Flrs 251,389 Avail SF: 671,389
5450 LBJ Fwy AVAIL SF: 671,389
A Totals / Avgs TBD A 420,000
LBJ FREEWAY Totals / Avgs 15 Flrs 420,000
2 Buildings 671,389
2 BUILDINGS 671,389
THE LEWISVILLE/DENTON OFFICE MARKET
Lakeside II TBD A 99,000 $0.00 Myers & Crow Company, Ltd.
2900 Lake Vista Dr Owen Real Estate Group
River Walk Medical Park - Phase III 3 Flrs 99,000 Owen Real Estate Group
2550 Medical Arts Way
River Walk Medical Park- Phase II TBD A 60,000 $0.00 Avail SF: 99,000
2550 Medical Arts Way
3 Flrs 0 John Bowles Company
A Totals / Avgs John Bowles Company
TBD A 60,000 $0.00 Axis Realty Group
200 Swisher Rd Venture Commercial Real Estate
200 Swisher Rd 3 Flrs 0 Weaver Commercial Real Estate
Castle Ridge Professional Park United Commercial Realty
4101 State Highway 121 3 Buildings 219,000 Caddis Partners
Centre Place Professional Building JDB Real Estate Investments, LLC
1509 Centre Place Dr TBD B 36,000 $0.00 JDB Real Estate Investments, LLC
Coppell Gateway - Building 3 TBD 1 Flr 36,000 $0.00 Cliff Hodge & Associates
761 Denton Tap Rd TBD 16,164 $0.00
Crannell TBD B 16,164 $0.00 Avail SF: 185,550
800 Enterprise Dr TBD 2 Flrs 21,225 $0.00
NWC Hebron & Medical Pky TBD 21,224 $0.00
NWC Hebron & Medical Pky TBD B 20,000 $0.00
NWC of FM 2499 & Cross Timbers Rd TBD 4 Flrs 20,000 $0.00
NWC of FM 2499 & Cross Timbers TBD 30,000 $0.00
The Plaza Office Condiminiums - Building 4 B 15,000
745 Plaza Ln 9 Buildings 2 Flrs 21,047
Westside Professional Center - Building 4 21,047
4491 Long Prairie Rd B 42,000
2 Flrs 21,000
B Totals / Avgs 20,000
B 20,000
1 Flr 15,115
15,115
B
1 Flr 221,551
B
1 Flr
B
1 Flr
© 2011 CoStar Realty Information, Inc. www.costargroup.com
Third Quarter 2011 F
Dallas/Ft Worth Office Market
DEVELOPMENT
Proposed Projects Third Quarter 2011 Class RBA Rate Marketing Company
Height Avail SF Development Company
Building Name Delivery Date
Building Address
THE LEWISVILLE/DENTON OFFICE MARKET CONT'D
LEWISVILLE/DENTON Totals / Avgs 12 BUILDINGS 440,551 AVAIL SF: 284,550
THE MID-CITIES OFFICE MARKET
Carillon Court - Building 1 TBD A 100,000 $0.00 Peloton Commercial Real Estate
SH 114 & White Chapel Rd $0.00 Hines
Carillon Court - Building 2 4 Flrs 100,000 $0.00 Peloton Commercial Real Estate
SH 114 & White Chapel Rd $0.00 Hines
Carillon Court - Building 3 TBD A 100,000 $0.00 Peloton Commercial Real Estate
SH 114 & White Chapel Rd $0.00
Texas Health Arlington Memorial Medical 4 Flrs 100,000 $0.00 Cambridge Healthcare Properties
W Randol Mill Rd & Cooper St
Tower Plaza Medical Center First Quarter 2012 A 100,000 $0.00 Geneva Real Estate LLC
821B E Southlake Blvd $0.00
Viridian Town Center - Phase I 4 Flrs 100,000 $0.00 Peloton Commercial Real Estate
4020 N Collins St $0.00
Viridian Town Center - Phase II TBD A 50,000 $0.00 Peloton Commercial Real Estate
4020 N Collins St $0.00
1 Flr 50,000 $0.00 Avail SF: 390,670
A Totals / Avgs $0.00
TBD A 40,670 $0.00 PMP Chase, LP
1226 Florida Dr $0.00 Weaver Commercial Real Estate
1226 Florida Dr 2 Flrs 40,670 $0.00
2001 Jeter Rd $0.00 KDC Real Estate Development & Investments
2001 Jeter Rd Fourth Quarter 2011 A 50,000 $0.00
4700 Cambridge Rd $0.00 Aubrey Keal Company
4700 Cambridge Rd 4 Flrs 0 $0.00
80 Regency Pky $0.00 Peloton Commercial Real Estate
80 Regency Pky Fourth Quarter 2011 A 50,000 $0.00 Oakhollow Group, Ltd.
BallPark Plaza - Phase II Oakhollow Group, Ltd.
1910 Ballpark Way 4 Flrs 0 Oakhollow Group, Ltd.
Brookhollow Commons II Rochester Broad & Matlock LLC
2201 Avenue J 7 Buildings 490,670
East Broad St. Medical Plaza Westwood Group Development Ltd.
Broad St TBD B 27,888 Westwood Group Development Ltd.
Grapevine Station Office TBD 1 Flr 0 CASE Commercial Real Estate Partners
1034 Texan Trl TBD
Mansfield Medical Plaza I TBD B 18,840 Maguire Partners
Broad St TBD 2 Flrs 12,960
One Westlake Park TBD 30,000 Champions DFW Commercial Realty
One Westlake Pky Second Quarter 2014 B 30,000 Founders Development Company
Pecan Creek - Phase III TBD 1 Flr 40,000 JaRyCo Development LLC
731 Zena Rucker Rd TBD JaRyCo Development LLC
The Atrium at 2929 Broad TBD B 0 Poynter Scifres Companies
E Broad St Fourth Quarter 2011 1 Flr 80,000 Poynter Scifres Companies
The Offices @ Hampden Woods TBD 80,000 Vision Commercial Real Estate
1971 NE Green Oaks Blvd TBD B 40,000
The Ponds TBD 1 Flr 40,000 Integrity Commercial Realty
8090 Precinct Line TBD 50,000
The Tower TBD B 50,000 Integrity Commercial Realty
Federal Way TBD 1 Flr 70,000
The Verde Commons @ Hwy 114 - Bldg 2 70,000 Integrity Commercial Realty
2542 E Northwest Pky 17 Buildings B 15,000
The Verde Commons @ Hwy 114 - Bldg 3 2 Flrs 15,000 Avail SF: 425,160
2544 E Northwest Pky 120,000
B AVAIL SF: 815,830
B Totals / Avgs 4 Flrs 0
20,000
MID-CITIES Totals / Avgs B 20,000
1 Flr 30,000
30,000
B 49,300
3 Flrs 47,200
30,000
B 30,000
1 Flr 114,240
B 0
2 Flrs 20,000
B 0
3 Flrs 20,000
B 0
1 Flr
775,268
B
4 Flrs
B
2 Flrs
B
2 Flrs
24 BUILDINGS 1,265,938
THE NORTH FORT WORTH OFFICE MARKET
Champions Circle TBD A 120,000 $0.00 Grubb & Ellis
SW Highway 114 & I-35 W
2 Flrs 120,000
© 2011 CoStar Realty Information, Inc. www.costargroup.com
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The CoStar Office Report The Dallas/Ft Worth Office Market THIRD QUARTER 2011
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