The CoStar Office Report - LPC Dallas

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 NORTH FORT WORTH OFFICE MARKET

A Totals / Avgs 1 Building 120,000 Avail SF: 120,000

10700 Victoria Ash Dr TBD B 18,800 $0.00 The Makens Company
10700 Victoria Ash Dr First Quarter 2012 1 Flr 0 $0.00 Office Equity Solutions
Alliance Medical Building First Quarter 2012 $0.00 Transwestern Ft Worth
3101 N Tarrant Pky TBD B 60,000 $0.00 Transwestern Ft Worth
Boot Hill at Sendera-PAD- D TBD 3 Flrs 60,000 $0.00 Transwestern Ft Worth
Sendera Ranch Blvd First Quarter 2011 75,000 $0.00 Integrity Commercial Realty
Boot Hill at Sendera-PAD-C First Quarter 2011 B 75,000 $0.00 Integrity Commercial Realty
Sendera Ranch Blvd 1 Flr 40,000 Avail SF: 215,000
Boot Hill at Sendra-PAD-E 7 Buildings 40,000
Sendera Ranch Blvd B 40,000 AVAIL SF: 335,000
Speedway Town Center Medical 1 1 Flr 40,000
I-35 W 70,000
Speedway Town Center Medical 2 B
I-35 W 1 Flr 0
48,000
B Totals / Avgs B
2 Flrs 0
NORTH FORT WORTH Totals / Avgs
B 351,800
2 Flrs

8 BUILDINGS 471,800

THE PRESTON CENTER OFFICE MARKET

8383 Preston Center Plaza Fourth Quarter 2012 A 85,000 $0.00 Altschuler and Company
8383 Preston Center Plaza $0.00
Park Cities Plaza 5 Flrs 46,480 RM Crowe Company
5934 Luther Ln RM Crowe Company
A Totals / Avgs First Quarter 2012 A 209,650 Avail SF: 256,130

PRESTON CENTER Totals / Avgs 9 Flrs 209,650 AVAIL SF: 256,130

2 Buildings 294,650

2 BUILDINGS 294,650

THE RICHARDSON/PLANO OFFICE MARKET

One Fountain Court First Quarter 2012 A 139,200 $0.00
1 Fountain Ct
Plano Riverwalk - B 5 Flrs 0 Peloton Commercial Real Estate
Alma Dr Harwood International
TBD A 300,000 $0.00 Harwood International
A Totals / Avgs Avail SF: 300,000
4 Flrs 300,000
225 N Preston Rd Jobe Company
225 N Preston Rd 2 Buildings 439,200 Search Commercial, LLC
614 S Watters Rd Appian Commercial Realty
614 S Watters Rd TBD B 15,000 $0.00 Appian Commercial Realty
6601 Mediterranean St TBD 1 Flr 15,000 $0.00 Appian Commercial Realty
6601 Mediterranean St Third Quarter 2011 19,500 $0.00 CB Richard Ellis
6617 Mediterranean St Third Quarter 2011 B 19,500 $0.00 Peloton Commercial Real Estate
6617 Mediterranean St Third Quarter 2011 1 Flr 17,859 $0.00 Equity Office
6675 Mediterranean St TBD 17,858 $0.00 John Bowles Company
6675 Mediterranean St TBD B 18,254 $0.00 Peloton Commercial Real Estate
Custer Commons Office Park - Building A TBD 4 Flrs 18,254 $0.00 Peloton Commercial Real Estate
475 President George Bush Tpke TBD 43,514 $0.00
Custer Court Phase II TBD B 43,514 $0.00 Huffman Builders
W President George Bush Hwy TBD 3 Flrs 40,286 $0.00
Eldorado Town Center - Proposed J/Phase 111 TBD 40,286 $0.00
Craig Dr B 150,000
Five Allen Center 4 Flrs 150,000
Bethany Dr 17,500
Four Allen Center B 17,500
Bethany Dr 2 Flrs 150,000
NEC N Dallas Tollway & Plano Pky - Bldg M 150,000
NEC N Dallas Tollway & Plano P B 150,000
Office A 3 Flrs 150,000
Hwy 380 & Lake Forest Dr 74,200
B
2 Flrs 0
27,000
B 27,000
1 Flr

B
1 Flr

B
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 RICHARDSON/PLANO OFFICE MARKET CONT'D

Pavillion Corporate Center - Bldg 1 Third Quarter 2012 B 100,000 $0.00 John Bowles Company
16905 Coit Rd John Bowles Company
Pavillion Corporate Center - Bldg 2 4 Flrs 100,000 John Bowles Company
16905 Coit Rd Harwood International
Pavillion Corporate Center - Bldg 3 TBD B 200,000 $0.00 Harwood International
16905 Coit Rd Legacy Commercial Realty, LLC
Plano Riverwalk - A 8 Flrs 200,000 Peloton Commercial Real Estate
Alma Dr Peloton Commercial Real Estate
The Forum at Prosper West Second Quarter 2012 B 125,000 $0.00
Hwy 380 Avail SF: 1,502,912
Three Allen Center 5 Flrs 125,000
Bethany Dr AVAIL SF:1,802,912
Two Allen Center TBD B 54,000 $0.00
Bethany Dr
3 Flrs 54,000
B Totals / Avgs
TBD B 75,000 $0.00
RICHARDSON/PLANO Totals / Avgs
3 Flrs 75,000

TBD B 150,000 $0.00

1 Flr 150,000

TBD B 150,000 $0.00

1 Flr 150,000

19 Buildings 1,577,113

21 BUILDINGS 2,016,313

THE SOUTH FT WORTH OFFICE MARKET

Harris Methodist Southwest Ft Worth Medical TBD A 100,000 $0.00 Cambridge Healthcare Properties
6100 Harris Pky $0.00
Two West 7th 4 Flrs 50,000 Peloton Commercial Real Estate
W 7th & Norwood St Cypress Equities I LP
TBD A 135,000 Avail SF: 185,000
A Totals / Avgs
7 Flrs 135,000 Transwestern Ft Worth
Menard Doswell & Co.
2 Buildings 235,000 CapRock Group

4800 Locke Ave TBD B 22,697 $0.00 Innovative Developers, Inc.
4800 Locke Ave Fourth Quarter 2011 1 Flr 22,697 $0.00
Midtown Urban Village TBD 50,000 $0.00 Innovative Developers, Inc.
2222 W Rosedale St TBD B $0.00
Montserrat Commercial Development - Building B TBD 1 Flr 0 $0.00 Innovative Developers, Inc.
TBD W Loop 820 TBD 15,863 $0.00
Montserrat Commercial Development - Building D B SRS Real Estate Partners
TBD W Loop 820 6 Buildings 1 Flr 0
Montserrat Commercial Development - Building G 22,400 Avail SF: 49,697
TBD W Loop 820 B
USMD Hospital of Ft. Worth 2 Flrs 0 AVAIL SF: 234,697
5900 Dirk Rd 22,400
B
B Totals / Avgs 2 Flrs 0
27,000
B 27,000
1 Flr
160,360

SOUTH FT WORTH Totals / Avgs 8 BUILDINGS 395,360

THE UPTOWN/TURTLE CREEK OFFICE MARKET

Harwood Court TBD A 100,000 $0.00 Altschuler and Company
2215 N Harwood St Cousins Properties Inc
Two Victory Park 10 Flrs 100,000 Hillwood Investment Properties
2371 Victory Ave Avail SF: 650,000
A Totals / Avgs TBD A 550,000 $0.00
Harwood International
International Center - Phase VII 20 Flrs 550,000
McKinnon St Avail SF: 105,000
B Totals / Avgs 2 Buildings 650,000
AVAIL SF: 755,000
UPTOWN/TURTLE CREEK Totals / Avgs TBD B 105,000 $0.00
1 Building 6 Flrs 105,000

105,000

3 BUILDINGS 755,000

© 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 UPTOWN/TURTLE CREEK OFFICE MARKET CONT'D

THE DALLAS/FT WORTH OFFICE MARKET

Office Market # Bldgs Avg RBA Available %
Size SF Leased
CLASS "A" SECTOR
CLASS "B" SECTOR 32 BUILDINGS 181,534 5,809,078 5,032,291 13%
CLASS "C" SECTOR 105 BUILDINGS 91,769 9,635,786 8,394,530 13%
TOTAL OFFICE MARKET 0 0%
0 BUILDING 0 0 13%
137 BUILDINGS 112,736 15,444,864 13,426,821

© 2011 CoStar Realty Information, Inc. www.costargroup.com

Third Quarter 2011 (Owner-Occupied) F

Dallas/Ft Worth Office Market
DEVELOPMENT

Proposed Projects Third Quarter 2011 (Owner-Occupied)

Building Name Delivery Date Class RBA Rate Marketing Company
Building Address Height Avail SF Development Company

THE FAR NORTH DALLAS OFFICE MARKET

Diodes Future HQ TBD B 75,000 $0.00
Legacy Dr
B Totals / Avgs 1 Flr 0 Trammell Crow Company

FAR NORTH DALLAS Totals / Avgs 1 Building 75,000 Avail SF: 0

1 BUILDING 75,000 AVAIL SF: 0

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 75,000 0 0%
CLASS "C" SECTOR 1 BUILDING 75,000 0 100%
TOTAL OFFICE MARKET 0 BUILDING 0 0
1 BUILDING 0 75,000 0 0%
75,000 100%

© 2011 CoStar Realty Information, Inc. www.costargroup.com

Employment&Tenant
Inventory

THIRD-QUARTER 2011

The Dallas/Ft Worth Office Market

Third Quarter 2011

Dallas/Ft Worth Office Market

EMPLOYMENT

Total Employment by Industry Total Employment Growth

Percent of Total Employment by Industry Total Number of Jobs Added Per Year

8% Natural Resources & Dallas/Ft Worth U.S. Average
0% Mining
14% Construction 5.0%

4% 21% Manufacturing 4.0%
10% 18%
Trade, Transportation & 3.0%
13% Utilities
Information 2.0%
3%
Financial Activities Percent Growth 1.0%

Professional & Business 0.0%
9% Services
-1.0%
Education & Health
Services -2.0%
Leisure & Hospitality
-3.0%
Other Services
-4.0%
Government
-5.0%

-6.0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source: Department of Labor, Bureau of Labor Statistics Source: Department of Labor, Bureau of Labor Statistics

Office* Employment Growth Office* Employment Growth

Cumulative Growth in Office* Jobs Over the Past 5 Years Number of Office* Jobs Added Per Year

Employment Inventory Dallas/Ft Worth U.S. Average
2002 2003 2004 2005 2008 2009 2010 2011
Market Growth Growth Difference 7.0%
6.0%
Atlanta -10.30% 3.50% -13.80% 5.0%
4.0%
Boston -3.70% 2.50% -6.20% 3.0%
2.0%
Chicago -9.40% 2.80% -12.20% Percent Growth 1.0%
0.0%
Dallas/Ft Worth 0.00% 4.70% -4.70% -1.0%
-2.0%
Denver -6.40% 3.90% -10.30% -3.0%
-4.0%
Los Angeles -12.30% 2.10% -14.40% -5.0%
-6.0%
New York City -2.70% 1.20% -3.90% -7.0%
-8.0%
Seattle/Puget Sound -3.10% 8.50% -11.60%

Tampa/St Petersburg -12.50% 3.40% -15.90%

Washington -0.90% 5.40% -6.30% 2001 2006 2007

Source: Department of Labor, Bureau of Labor Statistics

Source: Department of Labor, Bureau of Labor Statistics. * Office employment is defined as jobs in the Information,
Financial Activities, and Professional & Business Services industries

Historical Unemployment Rates

Dallas/Ft Worth U.S. Average

12.0%

10.0%

Percent Unemployment 8.0%

6.0%

4.0%

2.0%

0.0% 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011
2001 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q
1q

Source: Department of Labor, Bureau of Labor Statistics.

© 2011 CoStar Realty Information, Inc The CoStar Office Report www.costar.com

Third Quarter 2011

Dallas/Ft Worth Office Market

TENANT ANALYSIS

Firms by Size Range Lease Expirations

Up to 2,499 SF 2011

2,500-4,999 SF 2012

5,000-9,999 SF 2013

10,000-24,999 SF 2014

25,000-49,999 SF 2015

50,000-74,999 SF 2016

75,000 SF & Up 2017

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,00 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

Size Ranges Firms 0 Year Firms SF Expiring
2011
SF 2012 199 1,473,064
2013 879 6,538,000
Up to 2,499 SF 8,601 9,576,740 2014 810 7,912,281
2015 625 6,163,487
2,500-4,999 SF 3,274 11,101,106 2016 439 6,127,398
2017 312 6,459,328
5,000-9,999 SF 2,010 13,827,664 135 4,439,431
Source: CoStar Tenant®
10,000-24,999 SF 1,740 26,986,235

25,000-49,999 SF 535 18,154,792

50,000-74,999 SF 191 11,377,988

75,000 SF & Up 401 73,917,978

Source: CoStar Tenant®

Breakdown by Industry Group SF/Employee by Industry Group

Finance/Ins/RE 5,000 10,000 15,000 20,000 25,000 Agri/Mining/Util 100 150 200 250 300 350 400 450
Business-Service Law Firms
Firms SF Avg SF SF
Services Retailers/Wholes 419
Manufacturing 2,113 20,752,535 9,821 Manufacturing 399
Retailers/Wholes 1,119 12,634,723 11,291 Government 346
1,119 10,261,184 Services 334
Law Firms 9,170 Finance/Ins/RE 334
Agri/Mining/Util 329 8,709,827 26,474 333
Communications 577 7,725,067 13,388 Business-Service 327
573 6,537,057 11,408 Medical 282
Medical 473 6,518,929 13,782 275
Transportation 113 6,343,266 56,135 Communications 274
938 5,856,046 Accountants 243
Government 125 3,910,934 6,243 203
Engineers/Archit 104 3,755,314 31,287 Engineers/Archit 56
342 2,558,490 36,109 Transportation
Accountants 302 1,880,490
7,481 0 50
0 6,227
Industry Groups
Industry Groups Agri/Mining/Util
Finance/Ins/RE Law Firms
Business-Service Retailers/Wholes
Services Manufacturing
Manufacturing Government
Retailers/Wholes Services
Law Firms Finance/Ins/RE
Agri/Mining/Util Business-Service
Communications Medical
Medical Communications
Transportation Accountants
Government Engineers/Archit
Engineers/Archit Transportation
Accountants
Source: CoStar Tenant®
Source: CoStar Tenant®

© 2011 CoStar Realty Information, Inc The CoStar Office Report www.costar.com

SalesActivity

THIRD-QUARTER 2011

The Dallas/Ft Worth Office Market

Third Quarter 2011

Dallas/Ft Worth Office Market

SALES ACTIVITY

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

Cap Rate Price/SF

10.0% $400
9.0%
8.0% $350
7.0%
Cap Rate Percentage 6.0% $300
5.0%
4.0% $250
3.0% Dollars/SF
2.0% Price/SF $200
1.0%
0.0% $150

$100

$50

$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

Source: CoStar COMPS®

Sales Volume & Price Sales Analysis by Building Size

Based on Office Building Sales of 15,000 SF and Larger Based on Office Building Sales From July 2010 - June 2011

Sales Volume Price/SF Bldg Size # RBA $ Volume Price/SF Cap Rate

$1,000 $250
$200
$900 $150 < 50,000 SF 28 494,906 $ 57,065,919 $ 115.31 8.38%
$100
Millions of Sales Volume Dollars $800 $50
$0
$700

$600 50K-249K SF 22 2,979,113 $ 377,773,878 $ 126.81 8.31%

$500

$400

$300 250K-499K SF 6 1,873,706 $ 212,650,000 $ 113.49 9.73%

$200

$100

$0 >500K SF 4 3,708,182 $ 481,100,000 $ 129.74 7.10%
2008 1q 2008 3q 2009 1q 2009 3q 2010 1q 2010 3q 2011 1q

Source: CoStar COMPS® Source: CoStar COMPS®

U.S. Price/SF Comparison U.S. Cap Rate Comparison

Based on Office Building Sales of 15,000 SF and Larger Based on Office Building Sales of 15,000 SF and Larger

Dallas/Ft Worth US Dallas/Ft Worth US

$320 11.0%

$270 10.0%

Cap Rate Percentage 9.0%

Dollars per SF $220 8.0%

$170 7.0%

$120 6.0%

5.0%

$70 4.0%

$20 3.0%
2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011
1q 2q 3q 4q 1q 2q 3q 4q 1q 2q 3q 4q 1q 2q 1q 2q 3q 4q 1q 2q 3q 4q 1q 2q 3q 4q 1q 2q

Source: CoStar COMPS® Source: CoStar COMPS®

© 2011 CoStar Realty Information, Inc The CoStar Office Report www.costar.com

Dallas/Ft Worth Office Market Third Quarter 2011
Northpark Central
SALES ACTIVITY

Select Top Sales Based on Sales Price

Blue Cross and Blue Shield of TX, T Sterling Plaza/Preston Commons

Richardson Dallas Dallas

Price: $250,000,000 Price: $128,000,000 Price: $64,400,000
Price/SF: $177.44 Price/SF: $130.95
Cap Rate: $238.10 Price/SF: 7.20% Cap Rate: N/A
RBA: 721,351 RBA: 491,803
Date: N/A Cap Rate: 7/13/2010 Date: 2/25/2011
Year Built: 1986 Year Built: 1984
Buyer: 1,050,000 RBA: CB Richard Ellis Investors Buyer: Massachusetts Mutual Life Insurance
Seller: Capri Capital Partners, LLC Seller: AREA Property Partners
12/10/2010 Date:
Dallas
2010 Year Built:

Health Care Service Corporation Buyer:

KDC Real Estate Development & Investments Seller:

Legacy Place One Legacy Circle

Plano $60,000,000 Dallas $60,000,000 Plano $53,600,878
$200.07 $88.26 $250.34
Price: 6.90% Price: 7.00% Price: 7.00%
Price/SF: 299,900 Price/SF: 679,824 Price/SF: 214,110
Cap Rate: 8/18/2011 Cap Rate: 4/4/2011 Cap Rate: 3/24/2011
RBA: 1998 RBA: 1981 RBA: 2008
Date: L&B Realty Advisors, LLP Date: Rosemont Realty Date: Franklin Street Properties Corporation
Year Built: JPMorgan Asset Management Year Built: Younan Properties, Inc. Year Built: Principal Global Investors, LLC
Buyer: Buyer: Buyer:
Seller: Frisco Seller: Dallas Seller: Richardson

Frisco $49,000,000 Dallas $47,500,000 Richardson $43,100,000
$172.42 $186.00 $34.29
Price: 8.95% Price: 10.50% Price: N/A
Price/SF: 284,198 Price/SF: 255,378 Price/SF: 1,257,007
Cap Rate: 5/12/2011 Cap Rate: 12/22/2010 Cap Rate: 6/3/2011
RBA: 2006 RBA: 1972 RBA: 1991
Date: Wells Core Office Income REIT Inc. Date: Optima International, LLC Date: Pillar Commercial, LLC
Year Built: Kan Am Group LLC Year Built: W.P. Carey & Co. LLC Year Built: Nortel Networks Corp.
Buyer: Buyer: Buyer:
Seller: Seller: Seller:

Source CoStar COMPS®

© 2011 CoStar Group, Inc The CoStar Office Report www.costar.com

Third Quarter 2011

Dallas/Ft Worth Office Market

SALES ACTIVITY

Select Same Building Sales Based on Recent Building Sales Compared to Prior Sale

3100 Monticello Most Recent Sale Sale Prior to Most Recent Sale

Address: 3100 Monticello Ave Price: $22,500,000 Price: $31,250,000
Price/SF: $128.66 Price/SF: $178.70
City: Dallas Cap Rate: N/A Cap Rate: 7.55%
Date: 03/31/2011 Date: 11/20/2007
RBA: 174,879 Buyer: Westdale Real Estate Investment Buyer: Commonfund
Seller: Commonfund Seller: KBS Real Estate Investment Trust
Year Built: 1983 Brokers: N/A Brokers: CB Richard Ellis

Tot $ Return: ($8,750,000) CB Richard Ellis

Tot % Return -28%

Ann. Return: -8%

Months Held: 40

North Main Place Most Recent Sale Sale Prior to Most Recent Sale

Address: 1220 N Main St Price: $1,600,000 Price: $1,500,000
Price/SF: $107.48 Price/SF: $100.77
City: Fort Worth Cap Rate: N/A Cap Rate: 10.00%
Date: 02/24/2010 Date: 02/13/2007
RBA: 14,886 Buyer: Alberto Flores Buyer: Robinson Family Trust
Seller: Robinson Family Trust Seller: R & M Property Management, LLC
Year Built: 1985 Brokers: N/A Brokers: R & M Property Management, LLC

Tot $ Return: $100,000 SCM Real Estate Services

Tot % Return 7%

Ann. Return: 2%

Months Held: 36

Source: CoStar COMPS® The CoStar Office Report www.costar.com
© 2011 CoStar Group, Inc

FiguresataGlance

THIRD-QUARTER 2011

The Dallas/Ft Worth Office Market

Third Quarter 2011

Dallas/Ft Worth Office Market

FIGURES AT A GLANCE BY MARKET

Class A Market Statistics Third Quarter 2011

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries
Market # Blds Total RBA Direct SF Vac % Const SF Rates
19.2% 8,437 28,682
Central Expressway 27 7,600,377 1,437,756 1,458,929 26.2% (260,143) 0 0 $22.08
0
Dallas CBD 21 20,354,870 5,158,122 5,323,889 7.5% 4,894 0 0 $20.35
17.7% 463,892 0
East Dallas 2 136,114 10,234 10,234 0 0 $28.34
4.8% 10,886
Far North Dallas 91 19,097,959 3,168,989 3,376,400 20.8% 166,807 72,000 281,600 $23.53
24.8% (110,661) 0
Ft Worth CBD 13 5,400,475 254,529 256,692 0 0 $23.79
0.0% 0 0
Las Colinas 60 14,254,931 2,860,603 2,962,007 23.3% 13,838 0 0 $21.09
0
LBJ Freeway 30 9,672,484 2,276,700 2,400,133 0.0% 0 0 0 $19.08
13.6% (6,003) 0
Lewisville/Denton 0 0 00 14.9% 40,489 0 82,923 $30.27
27.9% (300,305) 0
Mid-Cities 29 3,996,084 865,330 932,756 11.4% 20,571 0 0 $24.12

North Fort Worth 0 0 00 0.0% 0 100,682 75,000 $0.00
25.6% (49,211)
Northeast Ft Worth 1 103,938 14,099 14,099 20.8% 320,824 0 $22.22
21.1% 324,315
Preston Center 16 2,697,084 395,871 401,458 0 $30.24

Richardson/Plano 34 7,044,042 1,933,750 1,965,509 113,700 $21.17

South Ft Worth 9 1,597,861 182,682 182,682 60,000 $25.90

Southwest Dallas 1 206,000 00 0 $0.00

Stemmons Freeway 10 3,422,968 806,494 877,579 0 $17.44

Uptown/Turtle Creek 35 8,047,829 1,560,179 1,672,422 0 $29.62
Totals 379 103,633,016
20,925,338 21,834,789 613,223 $22.04

Source: CoStar Property®

Class B Market Statistics Third Quarter 2011

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries
Market # Blds Total RBA Direct SF 889,970 Vac % Const SF Rates
887,630 14.3% (95,927) 0
Central Expressway 81 6,202,520 40.7% 43,115 0 0 $18.59
15.7% 10,228 0
Dallas CBD 32 6,243,190 2,457,081 2,540,239 17.9% 393,751 16,026 0 $15.10
23.7% (96,794) 0
East Dallas 95 3,796,139 578,858 594,558 21.6% 319,260 26,485 0 $16.66
26.0% 89,749 0
Far North Dallas 279 18,959,757 3,267,118 3,389,378 22.4% 10,300 66,947 0 $18.22
18.6% (357,304) 26,000
Ft Worth CBD 32 3,775,389 881,793 893,052 (16,000) 0 0 $17.99
9.2% (7,710) 0
Las Colinas 176 14,662,870 3,103,277 3,166,621 15.6% 35,536 0 0 $18.62
491,534 16,000
LBJ Freeway 118 10,621,322 2,721,310 2,756,453 8.2% 30,928 15,843 0 $15.66
25.7% 40,118 0
Lewisville/Denton 106 6,015,310 1,333,243 1,348,375 11.9% (80,898) 0 17,900 $17.76
16.3% (3,801) 0
Mid-Cities 247 13,752,393 1,973,851 2,555,691 29.5% 806,085 167,301 62,130 $17.75
15.0%
North Fort Worth 21 1,191,989 109,289 109,289 21.6% 0 $21.75

Northeast Ft Worth 28 1,733,000 260,410 270,910 0 $17.75

Preston Center 22 1,287,518 103,041 105,041 0 $26.45

Richardson/Plano 221 13,987,660 3,532,400 3,590,050 0 $16.40

South Ft Worth 114 6,263,971 724,150 746,774 0 $20.50

Southwest Dallas 46 1,989,784 307,001 324,368 30,290 $15.76

Stemmons Freeway 76 8,818,428 2,523,906 2,600,446 0 $13.21

Uptown/Turtle Creek 39 2,481,586 341,173 371,065 0 $22.07
Totals 1,733 121,782,826 25,105,531 26,252,280 110,320 $17.23

Source: CoStar Property®

© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2011

Dallas/Ft Worth Office Market

FIGURES AT A GLANCE BY MARKET

Class C Market Statistics Third Quarter 2011

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries
Market # Blds Total RBA Direct SF Vac % Const SF Rates
5.8% (5,510) 0
Central Expressway 19 662,251 38,292 38,292 22,103 0 0 $16.83
48.0% (30,372) 0
Dallas CBD 34 3,093,286 1,483,654 1,483,654 10.7% (1,192) 0 0 $20.42
0
East Dallas 51 1,729,145 185,878 185,878 9.4% 3,800 0 0 $12.27
13.0% (721) 0
Far North Dallas 21 580,351 54,521 54,521 1,834 0 0 $13.30
8.8% (19,767) 0
Ft Worth CBD 16 504,132 65,538 65,538 8.6% 2,247 0 0 $17.88
14.9% (1,700) 0
Las Colinas 12 713,038 58,645 62,645 17.1% (2,835) 0 0 $13.72
6.5% (30,639) 0
LBJ Freeway 19 974,608 83,416 83,416 9.3% (28,435) 0 0 $12.02
25.7% (18,391) 0
Lewisville/Denton 37 983,234 146,099 146,099 16.2% (17,740) 0 0 $17.90
13.9% 45,957 0
Mid-Cities 93 3,058,800 524,140 524,140 10.0% (9,398) 0 0 $11.94
5.7% (90,759)
North Fort Worth 11 242,798 15,835 15,835 10.9% 0 $16.10
16.3%
Northeast Ft Worth 12 345,030 32,228 32,228 0 $13.67

Preston Center 11 255,620 65,648 65,648 0 $13.88

Richardson/Plano 44 1,877,911 303,622 303,622 0 $15.97

South Ft Worth 63 1,754,174 235,306 243,979 0 $15.67

Southwest Dallas 19 672,583 67,144 67,144 0 $13.59

Stemmons Freeway 39 4,876,851 275,880 275,880 0 $13.24

Uptown/Turtle Creek 14 373,695 38,447 40,900 0 $18.08
Totals 515 22,697,507
3,674,293 3,689,419 0 $14.77

Source: CoStar Property®

Total Office Market Statistics Third Quarter 2011

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries
Market # Blds Total RBA Direct SF 2,387,191 Vac % Const SF Rates
16.5% (93,000) 28,682
Central Expressway 127 14,465,148 2,363,678 31.5% (194,925) 0 0 $20.82
14.0% 0
Dallas CBD 87 29,691,346 9,098,857 9,347,782 17.7% (15,250) 0 $19.44
12.6% 856,451 16,026
East Dallas 148 5,661,398 774,970 790,670 20.9% (82,108) 0 0 $15.65
24.6% 485,346
Far North Dallas 391 38,638,067 6,490,628 6,820,299 21.4% (19,078) 26,485 281,600 $20.66
19.3% 72,000
Ft Worth CBD 61 9,679,996 1,201,860 1,215,282 (9,467) 66,947 0 $20.69
8.7% (341,219) 26,000
Las Colinas 248 29,630,839 6,022,525 6,191,273 14.5% 0 $19.63
13.5% (17,700) 0
LBJ Freeway 167 21,268,414 5,081,426 5,240,002 25.6% (16,548) 0 0 $17.16
12.2% 45,386 0
Lewisville/Denton 143 6,998,544 1,479,342 1,494,474 13.6% 162,794 16,000 100,823 $18.13
21.9% 33,108 15,843
Mid-Cities 369 20,807,277 3,363,321 4,012,587 19.1% 22,378 0 62,130 $18.58
20.9% (84,152) 0
North Fort Worth 32 1,434,787 125,124 125,124 307,625 0 75,000 $21.23
1,039,641 267,983
Northeast Ft Worth 41 2,181,968 306,737 317,237 0 $17.72

Preston Center 49 4,240,222 564,560 572,147 0 $27.77

Richardson/Plano 299 22,909,613 5,769,772 5,859,181 113,700 $17.90

South Ft Worth 186 9,616,006 1,142,138 1,173,435 60,000 $20.75

Southwest Dallas 66 2,868,367 374,145 391,512 30,290 $15.37

Stemmons Freeway 125 17,118,247 3,606,280 3,753,905 0 $14.23

Uptown/Turtle Creek 88 10,903,110 1,939,799 2,084,387 0 $27.60
Totals 2,627 248,113,349 49,705,162 51,776,488 723,543 $19.25

Source: CoStar Property®

© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2011

Dallas/Ft Worth Office Market

FIGURES AT A GLANCE BY MARKET

Class A Submarket Statistics Third Quarter 2011

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries Const SF Rates
Market # Blds Total RBA Direct SF Vac %
44.3% 25,405 0
Allen/McKinney 5 499,234 205,621 221,063 0 0 113,700 $23.27
0.0% 0
Alliance 0 000 10.5% 49,744 28,682 75,000 $0.00
19.2% 8,437 0
Arlington/Mansfield 14 1,764,116 180,224 185,487 26.2% 0 0 $19.92
(260,143) 0
Central Expressway 27 7,600,377 1,437,756 1,458,929 0.0% 0 72,000 0 $22.08
20.8% 0
Dallas CBD 21 20,354,870 5,158,122 5,323,889 22.8% (2,324) 0 0 $20.35
13.6% (129,737) 0
Denton 0 000 0 0 $0.00
0.0% (6,003) 0
DFW Freeport/Coppell 11 2,246,135 467,468 467,468 13.3% 0 0 0 $21.04
0
East LBJ Freeway 25 8,381,845 1,815,160 1,907,142 4.8% 3,930 0 0 $20.19
0.0% 10,886 0
East Northeast Ft Worth 1 103,938 14,099 14,099 0.0% 0 0 $22.22
19.3% 0 0
Ellis County 0 000 0.0% 0 0 0 $0.00
0.0% 1,522 0
Frisco/The Colony 10 1,211,523 131,719 161,204 0.0% 0 0 0 $24.29
0.0% 0 0
Ft Worth CBD 13 5,400,475 254,529 256,692 3.5% 0 0 0 $23.79
0.0% 0 0
Garland 0 000 20.6% 4,894 0 0 $0.00
0.0% 0 0
Grand Prairie 1 116,527 0 0 0.0% (66,269) 0 0 $0.00
0.0% 0 0
HEB/Midcities 2 187,657 34,868 36,228 16.1% 0 0 0 $17.74
14.9% 0 0
Hood County 0 000 24.4% 13,172 0 0 $0.00
28.3% 40,489 0
Hunt County 0 000 10.0% (193,652) 0 0 $0.00
0.0% (338,882) 0
Johnson County 0 000 0.0% 0 0 0 $0.00
0.0% 0 0
Lewisville 0 000 0.0% 0 0 82,923 $30.27
25.6% 0 0
Mesquite/Forney/Terrell 1 51,000 1,761 1,761 10.1% 0 0 0 $28.34
20.8% (49,211) 0
Northwest Ft Worth 0 000 20.9% 653,614 0 0 $0.00
38.2% 320,824 0
Office Ctr/West LBJ Ext 25 5,174,036 1,033,185 1,064,909 11.4% 235,400 100,682 0 $20.41
36.9% 19,076
Outlying Collin County 0 000 0.0% 20,571 0 $0.00
0.0% (37,428)
Outlying Denton County 0 000 21.1% 0 0 $0.00
0
Parker County 0 000 324,315 0 $0.00

Plano 5 865,112 139,368 139,368 0 $19.79

Preston Center 16 2,697,084 395,871 401,458 0 $30.24

Quorum/Bent Tree 40 9,896,145 2,250,421 2,409,896 0 $22.82

Richardson 24 5,679,696 1,588,761 1,605,078 0 $20.95

Rockwall 1 85,114 8,473 8,473 0 $28.34

South Irving 0 000 0 $0.00

Southeast Dallas 0 000 0 $0.00

Southeast Ft Worth 0 000 0 $0.00

Southwest Dallas 1 206,000 0 0 0 $0.00

Stemmons Freeway 10 3,422,968 806,494 877,579 0 $17.44

Upper Tollway/West Plano 41 7,990,291 786,849 805,300 281,600 $25.23

Uptown/Turtle Creek 35 8,047,829 1,560,179 1,672,422 0 $29.62

Urban Center/Wingren 24 6,834,760 1,359,950 1,429,630 0 $21.68

West LBJ Freeway 5 1,290,639 461,540 492,991 0 $14.93

West Southwest Ft Worth 9 1,597,861 182,682 182,682 60,000 $25.90

Westlake/Grapevine 12 1,927,784 650,238 711,041 0 $25.68

White Rock 0 000 0 $0.00

Wise County 0 000 0 $0.00

Totals 379 103,633,016 20,925,338 21,834,789 613,223 $22.04

Source: CoStar Property®

© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2011

Dallas/Ft Worth Office Market

FIGURES AT A GLANCE BY MARKET

Class B Submarket Statistics Third Quarter 2011

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries Const SF Rates
Market # Blds Total RBA Direct SF Vac %
22.2% (18,028) 0
Allen/McKinney 55 2,731,577 594,126 607,373 (8,845) 0 0 $19.14
6.5% 83,003 0
Alliance 13 975,332 63,226 63,226 15.6% 0 0 $17.86
14.3% (95,927) 0
Arlington/Mansfield 90 4,642,818 721,955 724,474 40.7% 43,115 0 16,330 $17.39
14.7% (5,611) 26,485
Central Expressway 81 6,202,520 887,630 889,970 19.7% 241,620 0 0 $18.59
28.0% 86,469 0
Dallas CBD 32 6,243,190 2,457,081 2,540,239 15.6% (7,710) 0 0 $15.10
0
Denton 23 1,015,028 149,048 149,048 8.3% 7,377 0 0 $18.35
11.5% 37,327 0
DFW Freeport/Coppell 79 6,529,524 1,241,399 1,286,399 23.7% (96,794) 0 0 $18.66
21.3% (1,375) 26,000
East LBJ Freeway 86 7,724,980 2,128,378 2,163,521 10.0% 24,101 0 0 $16.00
35.3% (527,342) 0
East Northeast Ft Worth 28 1,733,000 260,410 270,910 33.8% (2,000) 0 0 $17.75
34.3% 66,947
Ellis County 6 272,056 22,551 22,551 6,790 0 0 $21.16
4.1% (1,038) 0
Frisco/The Colony 40 2,879,587 332,086 332,086 24.2% 15,911 0 0 $21.67
20.9% 12,484 16,000
Ft Worth CBD 32 3,775,389 881,793 893,052 (6,155) 0 0 $17.99
8.1% 42,107 0
Garland 32 1,242,182 252,659 264,659 17.3% 5,000 0 0 $17.84
68.7% 0
Grand Prairie 19 1,123,119 112,309 112,309 0 16,026 0 $14.56
0.0% (1,000) 0
HEB/Midcities 46 3,274,775 582,331 1,156,652 13.9% 0 0 $16.77
21.3% (476) 0
Hood County 4 65,000 22,000 22,000 35,536 0 0 $20.70
8.2% 304,068 0
Hunt County 4 108,158 37,079 37,079 23.8% 498,248 0 0 $26.40
29.3% 17,713 0
Johnson County 6 139,810 5,734 5,734 0 0 $19.76
7.3% 9,183 0
Lewisville 82 4,964,660 1,184,195 1,199,327 6.0% 10,013 0 17,900 $17.71
5.7% (9,157) 0
Mesquite/Forney/Terrell 8 205,680 39,195 42,895 22.8% 32,741 15,843 0 $24.75
17.6% (80,898) 0
Northwest Ft Worth 4 130,534 10,593 10,593 29.5% 52,356 0 0 $16.27
12.0% (3,801) 0
Office Ctr/West LBJ Ext 73 6,300,140 1,071,374 1,089,718 15.0% 35,533 167,301 0 $18.03
43.1%
Outlying Collin County 1 16,000 11,000 11,000 20.5% 3,280 0 $26.50
11.1% 43,123
Outlying Denton County 1 35,622 0 0 14.6% 53,751 0 $0.00
15.9% (28,607)
Parker County 3 50,123 6,970 6,970 79.2% 0 $21.54
21.6% 0
Plano 70 4,106,911 846,291 875,566 806,085 0 $17.97

Preston Center 22 1,287,518 103,041 105,041 0 $26.45

Quorum/Bent Tree 138 9,535,795 2,205,743 2,269,322 0 $16.18

Richardson 91 7,025,014 2,043,904 2,059,032 0 $15.04

Rockwall 15 380,975 27,751 27,751 0 $24.42

South Irving 20 1,474,716 89,024 89,024 0 $16.58

Southeast Dallas 9 519,775 29,819 29,819 0 $14.35

Southeast Ft Worth 11 398,311 90,675 90,675 0 $18.66

Southwest Dallas 40 1,717,728 284,450 301,817 30,290 $15.39

Stemmons Freeway 76 8,818,428 2,523,906 2,600,446 0 $13.21

Upper Tollway/West Plano 101 6,544,375 729,289 787,970 0 $22.00

Uptown/Turtle Creek 39 2,481,586 341,173 371,065 0 $22.07

Urban Center/Wingren 24 1,833,206 790,504 790,504 0 $19.47

West LBJ Freeway 32 2,896,342 592,932 592,932 0 $14.50

West Southwest Ft Worth 93 5,660,850 605,741 628,365 0 $20.90

Westlake/Grapevine 72 3,236,965 468,232 473,232 45,800 $23.51

White Rock 31 1,447,527 229,434 229,434 0 $14.75

Wise County 1 36,000 28,500 28,500 0 $30.39

Totals 1,733 121,782,826 25,105,531 26,252,280 110,320 $17.23

Source: CoStar Property®

© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2011

Dallas/Ft Worth Office Market

FIGURES AT A GLANCE BY MARKET

Class C Submarket Statistics Third Quarter 2011

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries Const SF Rates
Market # Blds Total RBA Direct SF Vac %
1.2% (870) 0
Allen/McKinney 5 451,192 5,345 5,345 0.0% 0 0 0 $19.35
0
Alliance 0 000 12.3% (7,740) 0 0 $0.00
5.8% (5,510) 0
Arlington/Mansfield 43 1,563,772 192,369 192,369 22,103 0 0 $12.31
48.0% (19,295) 0
Central Expressway 19 662,251 38,292 38,292 19.6% (1,129) 0 0 $16.83
64.0% 0
Dallas CBD 34 3,093,286 1,483,654 1,483,654 983 0 0 $20.42
8.8% (2,835) 0
Denton 20 562,916 110,353 110,353 9.3% 0 0 $19.18
0.0% 0 0
DFW Freeport/Coppell 2 39,499 25,289 25,289 0.0% 0 0 0 $22.71
13.0% 3,800 0
East LBJ Freeway 8 573,089 50,462 50,462 12.2% (11,976) 0 0 $11.83
45.0% 1,815 0
East Northeast Ft Worth 12 345,030 32,228 32,228 25.6% 1,747 0 0 $13.67
16.6% (4,260) 0
Ellis County 1 19,320 0 0 58.1% (25,000) 0 0 $0.00
25.6% 0 0
Frisco/The Colony 0 000 9.0% (472) 0 0 $0.00
17.1% (16,780) 0
Ft Worth CBD 16 504,132 65,538 65,538 7.2% (1,700) 0 0 $17.88
7.7% 408 0
Garland 15 437,702 53,541 53,541 0.0% 0 0 0 $11.76
0.0% 0 0
Grand Prairie 9 171,562 77,206 77,206 0.0% 0 0 0 $8.59
34.0% (1,095) 0
HEB/Midcities 22 704,882 180,220 180,220 25.7% (30,639) 0 0 $12.68
12.4% (1,192) 0
Hood County 3 51,088 8,460 8,460 12.0% (1,470) 0 0 $10.96
0.0% 0 0
Hunt County 2 43,000 25,000 25,000 13.5% 6,415 0 0 $0.00
9.4% 1,991 0
Johnson County 6 156,133 40,000 40,000 15.9% (2,092) 0 0 $13.93
10.3% (17,740) 0
Lewisville 16 398,718 35,746 35,746 5.7% 45,957 0 0 $10.32
0.0% 0 0
Mesquite/Forney/Terrell 8 241,985 41,476 41,476 10.9% (9,398) 0 0 $8.25
0.0% 0 0
Northwest Ft Worth 10 220,798 15,835 15,835 8.2% 851 0 0 $16.10
12.3% (12,039) 0
Office Ctr/West LBJ Ext 9 483,763 33,356 37,356 7.5% 10 0 0 $12.93
10.8% (3,607)
Outlying Collin County 0 000 0.0% 0 0 $0.00
16.3% (90,759)
Outlying Denton County 1 21,600 0 0 0 $0.00

Parker County 1 22,000 0 0 0 $0.00

Plano 17 489,202 166,104 166,104 0 $16.41

Preston Center 11 255,620 65,648 65,648 0 $13.88

Quorum/Bent Tree 17 440,097 54,521 54,521 0 $13.30

Richardson 20 894,517 107,173 107,173 0 $13.55

Rockwall 3 180,070 0 0 0 $19.39

South Irving 12 462,894 62,696 62,696 0 $10.73

Southeast Dallas 9 221,066 20,882 20,882 0 $15.44

Southeast Ft Worth 4 158,360 25,148 25,148 0 $16.43

Southwest Dallas 18 653,263 67,144 67,144 0 $13.59

Stemmons Freeway 39 4,876,851 275,880 275,880 0 $13.24

Upper Tollway/West Plano 4 140,254 0 0 0 $0.00

Uptown/Turtle Creek 14 373,695 38,447 40,900 0 $18.08

Urban Center/Wingren 1 189,776 0 0 0 $0.00

West LBJ Freeway 11 401,519 32,954 32,954 0 $12.27

West Southwest Ft Worth 50 1,388,593 161,698 170,371 0 $16.26

Westlake/Grapevine 7 155,690 11,649 11,649 0 $18.00

White Rock 16 648,322 69,979 69,979 0 $10.82

Wise County 0 000 0 $0.00

Totals 515 22,697,507 3,674,293 3,689,419 0 $14.77

Source: CoStar Property®

© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2011

Dallas/Ft Worth Office Market

FIGURES AT A GLANCE BY MARKET

Total Office Submarket Statistics Third Quarter 2011

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries Const SF Rates
Market # Blds Total RBA Direct SF Vac %
22.6% 6,507 0
Allen/McKinney 65 3,682,003 805,092 833,781 (8,845) 0 113,700 $20.38
6.5% 125,007 0
Alliance 13 975,332 63,226 63,226 13.8% (93,000) 28,682 75,000 $17.86
16.5% (194,925) 0
Arlington/Mansfield 147 7,970,706 1,094,548 1,102,330 31.5% (24,906) 0 16,330 $16.90
16.4% 238,167 26,485
Central Expressway 127 14,465,148 2,363,678 2,387,191 20.2% (42,285) 72,000 0 $20.82
24.7% (16,548) 0
Dallas CBD 87 29,691,346 9,098,857 9,347,782 14.5% 7,377 0 0 $19.44
41,257 0
Denton 43 1,577,944 259,401 259,401 7.7% (82,108) 0 0 $18.79
12.1% (13,351) 0
DFW Freeport/Coppell 92 8,815,158 1,734,156 1,779,156 12.6% 25,916 0 0 $19.04
18.9% (524,073) 26,000
East LBJ Freeway 119 16,679,914 3,994,000 4,121,125 13.4% (6,260) 0 0 $17.90
32.9% (18,210) 0
East Northeast Ft Worth 41 2,181,968 306,737 317,237 26.2% (1,038) 0 0 $17.72
41.1% 15,439 66,947
Ellis County 7 291,376 22,551 22,551 15.5% 0 0 $21.16
23.0% 598 0
Frisco/The Colony 50 4,091,110 463,805 493,290 17.3% (7,855) 0 0 $22.47
(23,754) 16,000
Ft Worth CBD 61 9,679,996 1,201,860 1,215,282 7.5% 5,000 0 0 $20.69
18.3% 0
Garland 47 1,679,884 306,200 318,200 68.8% 0 0 0 $16.61
(1,000) 0
Grand Prairie 29 1,411,208 189,515 189,515 0.0% 11,601 16,026 0 $12.85
9.7% 45,386 0
HEB/Midcities 70 4,167,314 797,419 1,373,100 21.6% 109,224 0 0 $16.20
13.5% 157,896 0
Hood County 7 116,088 30,460 30,460 23.8% 17,713 0 0 $17.51
27.7% 15,598 0
Hunt County 6 151,158 62,079 62,079 5.6% 12,004 0 0 $26.40
7.8% (11,249) 0
Johnson County 12 295,943 45,734 45,734 6.8% 15,001 0 0 $14.89
20.8% (84,152) 0
Lewisville 98 5,363,378 1,219,941 1,235,073 14.3% 705,970 0 100,823 $18.03
21.9% 307,625 0
Mesquite/Forney/Terrell 17 498,665 82,432 86,132 10.9% 270,933 15,843 0 $15.71
19.1% 23,207 0
Northwest Ft Worth 14 351,332 26,428 26,428 25.1% 51,655 0 0 $16.21
24.4% 16,333 0
Office Ctr/West LBJ Ext 107 11,957,939 2,137,915 2,191,983 11.3% (32,214) 267,983 0 $19.09
22.5%
Outlying Collin County 1 16,000 11,000 11,000 14.3% 0 0 $26.50
79.2% 1,039,641
Outlying Denton County 2 57,222 0 0 20.9% 0 $0.00

Parker County 4 72,123 6,970 6,970 0 $21.54

Plano 92 5,461,225 1,151,763 1,181,038 0 $18.04

Preston Center 49 4,240,222 564,560 572,147 0 $27.77

Quorum/Bent Tree 195 19,872,037 4,510,685 4,733,739 0 $19.34

Richardson 135 13,599,227 3,739,838 3,771,283 0 $17.22

Rockwall 19 646,159 36,224 36,224 0 $22.47

South Irving 32 1,937,610 151,720 151,720 0 $14.41

Southeast Dallas 18 740,841 50,701 50,701 0 $14.79

Southeast Ft Worth 15 556,671 115,823 115,823 0 $18.34

Southwest Dallas 59 2,576,991 351,594 368,961 30,290 $15.05

Stemmons Freeway 125 17,118,247 3,606,280 3,753,905 0 $14.23

Upper Tollway/West Plano 146 14,674,920 1,516,138 1,593,270 281,600 $23.51

Uptown/Turtle Creek 88 10,903,110 1,939,799 2,084,387 0 $27.60

Urban Center/Wingren 49 8,857,742 2,150,454 2,220,134 0 $20.94

West LBJ Freeway 48 4,588,500 1,087,426 1,118,877 0 $14.57

West Southwest Ft Worth 152 8,647,304 950,121 981,418 60,000 $21.46

Westlake/Grapevine 91 5,320,439 1,130,119 1,195,922 45,800 $24.98

White Rock 47 2,095,849 299,413 299,413 0 $13.93

Wise County 1 36,000 28,500 28,500 0 $30.39

Totals 2,627 248,113,349 49,705,162 51,776,488 723,543 $19.25

Source: CoStar Property®

© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2011

Dallas/Ft Worth Office Market

FIGURES AT A GLANCE BY MARKET

Class A Market Statistics Third Quarter 2011

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries
Market # Blds Total RBA Direct SF Vac % Const SF Rates
0
CBD 34 25,755,345 5,412,651 5,580,581 21.7% (249,257) 0 $20.58

Suburban 345 77,877,671 15,512,687 16,254,208 20.9% 573,572 100,682 613,223 $22.53
379 21.1% 324,315 100,682 613,223 $22.04
Totals 103,633,016 20,925,338 21,834,789

Source: CoStar Property®

Class B Market Statistics Third Quarter 2011

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries
Market # Blds Total RBA Direct SF Vac % Const SF Rates
0
CBD 64 10,018,579 3,338,874 3,433,291 34.3% (53,679) 0 $15.83

Suburban 1,669 111,764,247 21,766,657 22,818,989 20.4% 859,764 167,301 110,320 $17.32
1,733 21.6% 806,085 167,301 110,320 $17.23
Totals 121,782,826 25,105,531 26,252,280

Source: CoStar Property®

Class C Market Statistics Third Quarter 2011

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries
Market # Blds Total RBA Direct SF Vac % Const SF Rates
0
CBD 50 3,597,418 1,549,192 1,549,192 43.1% 25,903 0 $20.14

Suburban 465 19,100,089 2,125,101 2,140,227 11.2% (116,662) 0 0 $13.86
515 22,697,507 3,674,293 3,689,419 16.3% (90,759) 0 0 $14.77
Totals

Source: CoStar Property®

Class A & B Market Statistics Third Quarter 2011

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries
Market # Blds Total RBA Direct SF Vac % Const SF Rates
0
CBD 98 35,773,924 8,751,525 9,013,872 25.2% (302,936) 0 $19.55

Suburban 2,014 189,641,918 37,279,344 39,073,197 20.6% 1,433,336 267,983 723,543 $19.47
2,112 21.3% 1,130,400 267,983 723,543 $19.48
Totals 225,415,842 46,030,869 48,087,069

Source: CoStar Property®

Total Office Market Statistics Third Quarter 2011

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries Const SF Rates
Market # Blds Total RBA Direct SF Vac %
0
CBD 148 39,371,342 10,300,717 10,563,064 26.8% (277,033) 0 $19.57

Suburban 2,479 208,742,007 39,404,445 41,213,424 19.7% 1,316,674 267,983 723,543 $19.19
2,627 20.9% 1,039,641 267,983 723,543 $19.25
Totals 248,113,349 49,705,162 51,776,488

Source: CoStar Property®

© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2011

Dallas/Ft Worth Office Market

HISTORICAL FIGURES AT A GLANCE

Class A Market Statistics Third Quarter 2011

Existing Inventory Vacancy Net Deliveries UC Inventory Quoted

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

2011 379 103,633,016 20,925,338 21,834,789 21.1% 324,315 2 100,682 5 613,223 $22.04
2010 377 103,532,334 21,068,551 22,058,422 21.3% 988,787 3 1,478,343 3 382,282 $22.26
2009 374 102,053,991 20,011,950 21,568,866 21.1% 258,235 15 2,167,440 3 1,440,206 $22.88
2008 359 18,336,971 19,659,661 19.7% 913,814 11 2,263,524 17 3,578,964 $24.03
2007 348 99,886,551 17,074,755 18,309,951 18.8% 249,070 8 1,378,162 19 3,588,102 $23.47
2006 340 97,623,027 15,909,678 17,180,859 17.9% 2,796,499 11 1,625,719 11 2,433,612 $22.13
2005 329 96,244,865 17,047,327 18,351,639 19.4% 1,423,747 4 488,039 12 2,125,097 $20.51
2004 325 94,619,146 17,752,892 19,287,347 20.5% 2,160,220 4 839,265 4 488,039 $20.00
2003 321 94,131,107 18,554,939 20,608,302 22.1% 998,368 7 1,377,187 4 801,730 $20.09
2002 314 93,291,842 16,869,842 20,229,483 22.0% (615,444) 9 2,082,664 8 1,438,187 $20.58
2001 305 91,914,655 13,891,651 17,531,375 19.5% (687,846) 16 3,338,426 13 2,899,664 $22.07
2000 289 89,831,991 11,194,980 13,505,103 15.6% 3,188,595 11 2,090,006 20 4,630,157 $23.21
1999 278 86,493,565 12,405,226 14,603,692 17.3% 5,625,896 35 8,202,198 15 3,338,248 $23.13
1998 243 84,403,559 12,027,390 12,027,390 15.8% 3,346,244 18 3,373,260 38 8,757,984 $23.68
1997 225 76,201,361 12,000,374 12,000,374 16.5% 2,206,849 5 728,466 24 5,111,067 $22.20
1996 220 72,828,101 13,478,757 13,478,757 18.7% 1,369,057 1 176,384 6 1,034,506 $20.68
72,099,635

Source: CoStar Property®

Class B Market Statistics Third Quarter 2011

Existing Inventory Vacancy Net Deliveries UC Inventory Quoted

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

2011 1,733 121,782,826 25,105,531 26,252,280 21.6% 806,085 7 167,301 5 110,320 $17.23
2010 1,729 122,145,128 26,740,844 27,420,667 22.4% (268,037) 6 167,559 6 151,301 $17.13
2009 1,723 121,977,569 26,279,614 26,985,071 22.1% (590,505) 30 1,406,119 6 173,338 $17.71
2008 1,694 120,608,708 24,353,289 25,025,705 20.7% 2,649,470 56 3,339,955 27 1,329,543 $18.36
2007 1,640 117,355,414 23,669,365 24,421,881 20.8% 2,961,391 49 2,805,855 52 3,047,119 $17.94
2006 1,591 114,549,559 23,709,736 24,577,417 21.5% 2,487,958 61 2,635,083 50 3,358,045 $16.74
2005 1,532 112,378,944 23,816,031 24,894,760 22.2% 940,866 44 1,957,529 54 2,580,187 $15.97
2004 1,490 110,904,158 22,962,416 24,360,840 22.0% 2,047,298 40 1,532,533 40 1,915,821 $15.58
2003 1,451 109,401,235 23,285,207 24,905,215 22.8% (1,234,823) 26 1,413,413 34 1,494,775 $15.71
2002 1,426 108,118,467 19,845,263 22,387,624 20.7% (402,486) 31 1,556,611 24 1,339,163 $16.64
2001 1,395 106,561,856 17,797,730 20,428,527 19.2% (115,276) 60 4,261,203 30 1,698,517 $18.11
2000 1,336 102,383,688 14,750,947 16,135,083 15.8% 1,849,589 48 2,907,593 52 3,867,956 $19.03
1999 1,288 13,861,459 15,077,079 15.2% 3,502,891 81 5,759,143 42 2,540,990 $18.28
1998 1,208 99,476,095 13,117,827 13,117,827 14.0% 3,357,397 50 3,489,546 73 5,466,451 $19.27
1997 1,159 94,013,952 13,254,816 13,254,816 14.6% 3,207,620 27 1,742,721 39 3,208,621 $18.17
1996 1,132 90,793,544 14,719,715 14,719,715 16.5% 2,905,142 16 911,231 21 1,363,208 $15.70
89,050,823

Source: CoStar Property®

Total Office Market Statistics Third Quarter 2011

Existing Inventory Vacancy Net Deliveries UC Inventory Quoted

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

2011 2,627 248,113,349 49,705,162 51,776,488 20.9% 1,039,641 9 267,983 10 723,543 $19.25
2010 2,621 248,374,969 51,391,000 53,077,749 21.4% 857,620 9 1,645,902 9 533,583 $19.32
2009 2,612 246,729,067 50,006,451 52,289,467 21.2% (728,729) 45 3,573,559 9 1,613,544 $19.92
2008 2,569 243,223,055 46,049,927 48,054,726 19.8% 67 5,603,479 4,908,507 $20.69
2007 2,504 237,706,237 43,944,838 45,944,745 19.3% 3,406,837 58 4,205,392 44 6,635,221 $20.27
2006 2,447 233,642,110 42,728,672 44,890,656 19.2% 3,010,038 73 4,277,802 71 5,813,032 $19.04
2005 2,377 229,962,863 44,029,539 46,441,265 20.2% 5,229,856 54 2,716,358 62 4,722,284 $17.90
2004 2,335 229,347,332 45,737,206 48,714,663 21.2% 2,888,929 45 2,393,188 67 2,674,650 $17.33
2003 2,296 227,401,450 46,971,426 50,710,666 22.3% 3,941,885 33 2,790,600 50 2,317,895 $17.50
2002 2,271 225,380,288 42,251,972 48,247,685 21.4% (441,819) 45 3,790,434 39 2,777,350 $18.19
2001 2,228 221,990,854 37,228,557 43,553,128 19.6% (1,305,123) 77 7,656,571 32 4,729,444 $19.55
2000 2,153 214,433,002 30,962,539 34,709,824 16.2% (1,285,452) 62 5,080,351 47 8,555,055 $20.34
1999 2,091 209,352,651 30,567,392 34,001,980 16.2% 4,372,507 120 14,130,830 73 5,961,990 $20.13
1998 1,974 195,631,880 30,337,862 30,337,862 15.5% 10,056,653 70 6,905,709 60 14,393,924 $20.90
1997 1,906 189,026,065 30,578,716 30,578,716 16.2% 6,846,669 35 2,532,365 115 8,362,591 $19.59
1996 1,871 186,493,700 33,337,422 33,337,422 17.9% 5,291,071 21 1,160,512 65 2,458,892 $17.08
4,043,410 30

Source: CoStar Property®

© 2011 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com