2017: The Year of the Move-In

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1 Research & Forecast Report DALLAS-FORT WORTH OFFICE Q : The Year of the Move-In Mike Otillio Director of Research Kari Beets Research Associate After years of speculation, planning, and construction, the relocations and consolidations that have been the hype of the DFW market for the last several years have come to fruition. Toyota moved into its 2.1 million square foot headquarters in June 217, JP Morgan occupied its 1 million square foot campus in Q4, and TD Ameritrade moved to its Westlake campus in December. Absorption in 217 was driven by single-tenant build-to-suit projects. Of the 5.6 million in net absorption for the year, 3.6 million, or two-thirds was from single-tenant buildings. Much of the activity in the market was large tenants moving into higher-grade space. While 217 was a strong year for Class A with 6.7 million square feet of net absorption, the third highest year since 1982 Class B posted negative net absorption of 835, square feet. One example of this is JP Morgan who consolidated offices, including its Class B Lake Vista location to their Class A build-to-suit in Legacy West. Even though over 75% of Class A absorption was single-tenant, Class A still saw positive absorption of 1.8 million in multi-tenant product verses 51, square feet of Class B multi-tenant absorption. A Look Ahead > With no negative catalyst in sight and favorable results from tax reform for real estate and median-priced markets like DFW, we foresee another good 2-3 years in this cycle. Due to fewer build-to-suits in the pipeline, net absorption will drop off dramatically in 218, but we will still see slow but steady rent growth and rising occupancy in the hot markets Far North, Uptown, and a push toward Las Colinas. We may be in the ninth inning, but this expansion is heading into extra innings. > DFW can expect more corporate relocations, as the tax reform is likely to make companies from coastal markets consider lower priced housing markets to attract and retain employees while keeping salary costs lower. > The tightening labor market is pushing more companies to think about real estate as a recruiting tool, causing more migration to higher-grade amenity-rich space. Market Indicators Relative to prior period orption Under Construction Rental *Projected Summary Statistics DFW Office Market DFW Market DFW Class A DFW Class B 15.8% 17% 15.5% Change from prior Quarter.3% -.4%.9% Absorption (Thousand Square Feet) New Supply (Thousand Square Feet) Under Construction (Thousand Square Feet) Asking Rents Per Square Foot Per Year Annual Change Quarterly Change 1,379 2,488-1,73 2,539 2, ,866 8, Quarterly Forecast* Average Quoted (Gross) $25.38 $29.29 $21.38 Change from prior Quarter.2% -.1%.9% Year-Over-Year Change 4.6% 3.9% 5.1%

2 Market Highlights > Job growth slowed slightly toward the end of 217. From November 216 to November 217, DFW added 1,4 jobs, compared with 135,1 from the year prior to January 217. has added jobs at an annual rate of 2.9%, versus 2.7% for. The unemployment rate for November stood at 3.2%, half a percent below the Texas unemployment rate of 3.7%. Professional and Business Services grew 5.2% in the year prior to November 217. > Over 8.6 million square feet was delivered in 217, the most of any year during this cycle. In Q4, 2.5 million square feet delivered, of which 67% was built-to-suit, including the 1 million square foot JP Morgan campus. The construction pipeline is down considerably by 31% from the end of 216, with 64 properties totaling 8.9 million square feet under construction. The construction pipeline is two-thirds leased. Overall vacancy increased from 15.5% in Q3 217 to 15.8% in Q4 217, an increase of 1.2 million square feet. is up.5% from the end of 216. Class A vacancy decreased.4% to 17%, and Class B vacancy increased.9% from prior quarter to 15.5%. Thirteen out of seventeen submarkets saw flat to increasing vacancy in Q4. The North US 75 corridor saw the greatest improvement in vacancy, decreasing from 18.3% in Q3 to 17.6% in Q4. Lewisville-Denton s vacancy rate rose 5.8% after several large move-outs. New Supply, Absorption & Job Growth & Unemployment (not seasonly adjusted) Unemployment 11/216 11/217 DFW 3.7% 3.2% Texas 4.5% 3.7% U.S. 4.4% 3.9% Job Growth Annual Change # of Jobs Added DFW 2.8% 1.4k Texas 2.7% 331.6k U.S. 1.5% 2,133k Class A Office Rents & 2% $35 Thousands of Square Feet 1, 7,5 5, New Supply orption 2% 15% 1% 18% 16% 14% $31 $27 $23 Rental (Gross) 2,5 5% % $19 Rental s Overall gross rental rates climbed slower in Q4 217 compared to earlier in the year, increasing only.2% to $ Class A rates were virtually flat at $29.29, showing that while the flight to quality increases, supply and demand are more in balance and tenants are reaching the limits of what they are willing to pay. Class B rates increased.9% to $ Preston Center had the highest advertised rates for Class A space in Q4 217 at $42.21, just ahead of Uptown / Turtle Creek at $4.78. Uptown s rates were flat quarter-to-quarter and up only.7% from the prior year, showing that rates have flattened as predicted. s in Preston Center still show growth, as they are up 1.7% from the previous quarter. Central Expressway showed a 7.2% decrease in rates from Q3, but its rate of $27.77 is still up 3.5% from the end of 216. Absorption & Demand Quarterly net absorption was a strong 1.4 million square feet, bringing the 217 total net absorption to 5.6 million square feet. Class B, however, posted negative absorption of 1.1 million square feet, and Class A saw negative 276,528 square feet of sublet absorption. While significantly stronger than 216, net absorption was 6.6 million square feet less than in 214 and 215. With move-ins from JP Morgan and Fannie Mae, Far North saw 1.3 million square feet of absorption in Q4 alone, bringing its yearly total to 4.3 million square feet. However, Lewisville-Denton experienced negative 57, square feet of absorption from Xerox vacating 256, at 133 Ridgeview and JP Morgan moving out of Lake Vista, however this space will be filled by NationStar Mortgage in July 218. % Thousands of Square Feet 1% $ Class A Rental Market Rental Class A Market Class A, B & C Office Absorption 7,5 6,5 5,5 4,5 3,5 2,5 1, Class A Class B Class C 2 - Research & Forecast Report Q4 217 Office Colliers International

3 - Downtown & Suburban Office Market Summary EXISTING PROPERTIES NET ABSORPTION CONSTRUCTION RENT Submarket Bldgs Inventory Direct Sublease Vacant Current Prior Qtr Current Qtr New Supply Under Construction Average (FS) DOWNTOWN AND SUBURBAN MARKETS Class A Suburban Suburban DFW Market 28 23,375, % 2.6% 6,277, % 27.% 23,486 9,284 92, ,425 $ ,829, %.5% 795, % 13.9% 16,2 1,737 28,489 $ ,752, % 1.3% 17,875, % 15.6% 2,331,935 6,64,457 7,14,46 7,287,521 $ ,41, %.7% 866, % 19.5% 116,478 (82,942) 16,781 98,497 $ ,998, % 1.4% 25,814, % 17.4% 2,488,99 6,688,536 7,267,64 8,9,932 $29.29 Class B Suburban Suburban DFW Market 36 5,891, %.6% 962,7 16.3% 15.9% (23,38) (46,718) $ ,25, %.2% 32, % 8.2% 26,388 45,972 $2.99 2,369 5,833, %.8% 19,595, % 14.6% (1,1,354) (868,189) 1,236, ,897 $ ,521, %.6% 2,416, % 16.% (65,533) 33, ,943 11,91 $ ,788 15,452,7 14.8%.8% 23,294, % 14.6% (1,72,537) (835,218) 1,371, ,87 $21.38 Class C Suburban Suburban DFW Market 45 3,152,69 8.3%.1% 264, % 8.2% (6,976) (48,629) $ ,554.4%.% 2,976.4%.3% (96) (2,976) $ ,625,898.1%.1% 2,391,17.2%.1% (,598) (242,928) $ ,57, %.% 334, % 7.% (15,898) 64,777 $ ,17 28,14, %.1% 2,992, % 1.6% (36,378) (229,756) $18.63 All Classes Suburban Suburban DFW Market 19 32,419, % 2.% 7,53, % 23.1% (6,528) (86,63) 92, ,425 $ ,7, %.4% 1,118, % 1.8% 41, ,733 28,489 $ ,76 263,211, % 1.% 39,862, % 14.8% 1,38,983 5,529,34 8,25,695 7,951,418 $ ,132, %.5% 3,617,15 15.% 15.% 35,47 15, ,724 29,47 $ ,487 33,464, % 1.% 52,11, % 15.5% 1,379,184 5,623,562 8,638,656 8,865,739 $25.38 QUARTERLY AND ANNUAL HISTORICAL COMPARISONS 217 Q4 4,487 33,464, % 1.% 52,11, % 15.5% 1,379,184 5,623,562 8,638,656 8,865,739 $ Q3 4, ,925, %.9% 5,941, % 15.5% 973,179 4,244,378 6,99,48 1,751,389 $ Q2 4,44 326,713, %.8% 5,73, % 15.4% 1,979,164 3,271,199 4,887,463 9,983,38 $ Q1 4, ,16, %.8% 5,34, % 15.3% 1,292,35 1,292,35 2,23,284 11,75,189 $ Q4 4, ,8, %.7% 49,2, % 15.2% 454,524 3,97,531 5,239,76,866,737 $ Q4 4, ,573, %.5% 46,98, % 14.9% 1,284,63 6,631,163 7,4,731 9,639,76 $ Q4 4,247 39,172, %.7% 46,211,2 14.9% 15.2% 1,54,189 6,697,937 3,878,826 8,483,219 $ Q4 4,181 35,293, %.6% 49,3, % 16.1% 751,76 3,256,666 2,481,549 6,979,395 $ Q4 4,14 32,689, %.5% 49,731,7 16.4% 16.5% 49,949 2,35,863 1,313,82 2,747,254 $ Research & Forecast Report Q4 217 Office Colliers International

4 - Office Submarket Summary EXISTING PROPERTIES NET ABSORPTION CONSTRUCTION RENT Colliers Markets Bldgs Inventory Direct Sublease Vacant Current Prior Qtr Current Qtr New Supply Under Construction Average (FS) Class A Central Expressway 22 7,11,825.6%.4% 928, %.6% (35,556) 21,171 $ ,375, % 2.6% 6,277, % 27.% 23,486 9,284 92, ,425 $ 27. East 2 14,46 9.1% 1.% 14, % 14.4% 6,67 294,82 $ Far North ,218, % 1.6% 4,239, % 11.8% 1,428,79 4,297,99 4,634,66 2,787,327 $ Fort Worth 17 5,829, %.5% 795, % 13.9% 16,2 1,737 28,489 $ Las Colinas 82 19,854,45.2% 1.3% 2,681, % 13.7% 35,557 1,138, ,42 1,821, $ 3.3 LBJ 37 1,686, % 1.6% 2,352, % 23.4% 151, ,84 $ Lewisville / Denton 4 23,755 1.%.% 2,21 1.% 5.5% 1,392 1,392 $ Mid-Cities 45 8,732, %.3% 1,656, % 19.7% 385, , , , $ North 4 819, %.% 18, % 28.5% 53,434 (155,189) $ 18. Northeast 2 415, %.% 37, % 73.8% 3,882 $ Preston Center 23 4,346, % 1.1% 528,113.2% 9.4% 35,17 (39,95) 171, , $ North US 75 Corridor 73 14,675, % 2.% 3,526,81 24.% 25.6% 296,265 3, ,467 45,36 $ South 24 3,86,295 9.%.9% 379,114 1.% 11.6% 63,44 41,365 16,781 98,497 $ Southwest 3 352,67 8.8%.% 31,41 8.8% 4.4% (15,541) (15,541) $ 3.77 Stemmons 13 4,545, %.2% 837, % 18.8% 15, ,991 63, $ 18.7 Uptown / Turtle Creek 46 1,867, % 1.1% 1,78, % 1.1% 18, ,727 2, 1,35,14 $ 4.78 DFW Market ,998, % 1.4% 25,814, % 17.4% 2,488,99 6,688,536 7,267,64 8,9,932 $ Class B Central Expressway 87 6,17,77 9.%.5% 574, % 8.7% (49,368) (97,96) $ ,891, %.6% 962,7 16.3% 15.9% (23,38) (46,718) $ East 182 6,547,61 8.4%.2% 563, % 8.1% (34,138) (78,46) 46,5 $ 21.6 Far North 48 21,486, %.9% 3,313, % 14.5% (116,61) (9,834) 216,694 84,782 $ Fort Worth 44 4,25, %.2% 32, % 8.2% 26,388 45,972 $ 2.99 Las Colinas ,651, % 1.6% 2,9, % 15.% (69,113) (118,63) 352,59 5,913 $ 2.82 LBJ 9 11,42, %.7% 2,596, % 21.6% (26,24) (3,248) $ Lewisville / Denton 23 8,361, % 1.8% 1,343, % 8.9% (579,967) (586,18) 13,275 48,245 $ Mid-Cities ,826, %.4% 2,798, % 14.6% 13,872 (1,42) 115,149 11,9 $ 2.49 North 74 3,311,68 8.4% 1.8% 322,7 9.7% 7.3% (68,553) (87,84) 52,5 57, $ Northeast 51 3,35, %.% 1,425, % 42.7% (14,26) 52,8 $ 2.35 Preston Center 21 1,11, %.% 98, % 7.4% (23,759) (3,855) $ North US 75 Corridor 391 2,863,859.%.3% 2,562,637.3%.4% 85, , ,44 247,557 $ South 214 7,94,78 8.1%.4% 667, % 8.5% 17,28 67,989 82,938 53,91 $ Southwest 9 3,6, %.1% 334, % 11.4% 23, ,351 82,772 $ Stemmons 99 7,675, %.3% 2,86, % 27.1% (9,515) (48,689) $ Uptown / Turtle Creek 45 2,289,7.4% 6.1% 423, % 16.5% (45,366) (,668) 14,765 $ DFW Market 2,788 15,452,7 14.8%.8% 23,294, % 14.6% (1,72,537) (835,218) 1,371, ,87 $ Research & Forecast Report Q4 217 Office Colliers International

5 - Office Submarket Summary EXISTING PROPERTIES NET ABSORPTION CONSTRUCTION RENT Colliers Markets Bldgs Inventory Direct Sublease Vacant Current Prior Qtr Current Qtr New Supply Under Construction Average (FS) Class C Central Expressway ,53 4.8%.% 44, % 4.6% (1,633) 2,447 $ ,152,69 8.3%.1% 264, % 8.2% (6,976) (48,629) $ East 118 2,629, %.2% 251, % 9.3% (5,49) (27,264) $ Far North 48 1,48, % 1.5% 159, % 15.9% 7,333 (23,7) $ Fort Worth ,554.4%.% 2,976.4%.3% (96) (2,976) $ 19.3 Las Colinas 2 1,52, %.% 86,76 8.2% 8.1% (1,419) 24,946 $ LBJ 3 581, %.% 79, % 14.3% 3,776 78,361 $ Lewisville / Denton 69 1,567,2 3.8%.% 6, % 3.8% (51) (14,277) $ Mid-Cities 21 4,897,249.5%.% 6,675.5%.1% (2,6) 28,676 $ North , 5.9%.% 33,52 5.9% 2.1% (21,793) 13,644 $ Northeast , %.% 11,4 13.5%.2% (9,791) (15,735) $ 18.4 Preston Center , %.% 18, % 4.9% 55,599 $ North US 75 Corridor 16 2,51, %.% 63, % 24.1% (1,33) (46,91) $ South 152 3,249, %.% 199, % 6.6% 15,686 66,868 $ Southwest 69 1,43, %.% 46,27 3.2% 3.1% (2,267) 14,133 $ 17.8 Stemmons 64 2,15, %.% 389, % 18.9% 8,197 59,576 $ Uptown / Turtle Creek ,897 7.%.9% 39, % 8.% 67 (27) $ 33.5 DFW Market 1,17 28,14, %.1% 2,992, % 1.6% (36,378) (229,756) $ All Classes Central Expressway ,53, %.4% 1,547,54 11.% 1.4% (86,557) (56,342) $ ,419, % 2.% 7,53, % 23.1% (6,528) (86,63) 92, ,425 $ East 32 9,318,4 8.7%.2% 828,65 8.9% 8.5% (33,48) (15,67) 341,32 $ Far North ,752, % 1.3% 7,7, %.9% 1,319,522 4,265,149 4,851,354 2,872,19 $ 28.4 Fort Worth 82 1,7, %.4% 1,118, % 1.8% 41, ,733 28,489 $ Las Colinas ,558, % 1.4% 5,668, % 14.2% (34,975) 1,45,147 1,37,992 1,946,913 $ LBJ ,31, % 1.1% 5,27, % 22.3% (51,84) 226,953 $ Lewisville / Denton 276 1,159,68.3% 1.5% 1,45, % 8.% (57,85) (589,93) 13,275 48,245 $ Mid-Cities ,456,3 15.3%.3% 5,67, % 15.5% 379, , ,83 665,9 $ North 11 4,698, % 1.3% 536, % 1.4% (36,9) (228,629) 52,5 57, $ 2.38 Northeast 9 4,473, %.% 1,834, % 4.5% (24,51) 67,959 $ 2.44 Preston Center 6 5,738, %.8% 645, % 8.7% 11,258 11, , , $ 4.6 North US 75 Corridor 57 38,4, %.9% 6,692, % 18.3% 38,622 17, , ,917 $ South 39 14,96, %.4% 1,246, % 8.9% 96,1 176, , ,47 $ Southwest 162 4,843,45 8.4%.1% 411, % 8.4% 6,13 162,943 82,772 $ Stemmons ,326, %.2% 3,313, % 23.2% 14,157 16,878 63, $ Uptown / Turtle Creek ,653,53 9.4% 1.9% 1,541, % 11.1% (26,178) 144,32 214,765 1,35,14 $ DFW Market 4,487 33,464, % 1.% 52,11, % 15.5% 1,379,184 5,623,562 8,638,656 8,865,739 $ NOTE: Statistical set consists of office properties 1, and up, including owner-occupied properties; and excluding medical office and properties where the government is 1% owner and occupier. While CoStar attempts to provide the most accurate data at the end of every quarter, revisions are made throughout the year accounting for discrepancies in past reporting. 5 - Research & Forecast Report Q4 217 Office Colliers International

6 Leasing Activity Leasing activity is down from 216 in all but two submarkets and Lewisville-Denton. Leasing activity in Q4 217 was 4.3 million square feet and the total for 217 is 17.8 million square feet. Q4 217 Notable Office Lease Transactions TENANT PROPERTY SUBMARKET LEASED BUILDING CLASS DEAL TYPE SIGN DATE Mercedes-Benz Financial Services 1365 Heritage Pky North 2, A New Dec-17 T-Mobile 7668 Warren Pky Far North 158,298 A Renewal Dec-17 Gartner, Inc. 611 Connection Dr Las Colinas 152,86 A New Nov-17 Berry Appleman and Leiden LLP 24 N Glenville Dr North US-75 Corridor 67,38 A New Oct-17 Winston & Strawn LLP 21 Pearl St Uptown/Turtle Creek 55,917 A New Oct-17 Goodman Networks, Inc. 281 Network Blvd Far North 52,944 A Renewal Nov-17 Government SDA 235 Valley View Ln LBJ 47,637 B New Nov-17 Alston & Bird 22 Ross Ave 34,875 A New Dec-17 Cyxtera 1561 Pky Far North 3,913 A New Nov-17 Aecom Hunt Noel Rd LBJ 3,637 A New Oct-17 Shore Chan Bragalone DePumpo LLP 91 Main St 27,675 A Renewal Nov-17 Audatex 771 Las Colinas Rdg Las Colinas 27,517 A New Oct-17 RealPage, Inc Lakeside Blvd North US-75 Corridor 27,2 A New Oct-17 Guidon Energy 545 E John Carpenter Fwy Las Colinas 22,36 A New Oct-17 McKool Smith, P.C. 3 Crescent Ct Uptown/Turtle Creek 2,681 A Renewal Nov-17 Sales Activity Investment activity in 217 totaled $3.5 billion. While considerably behind the record year of 216, 217 s total is only 6.6% behind 215 s yearly total. Investors continue to be interested in DFW as they seek strong, stable returns outside of the high-priced coastal markets. Nationally, office investment sales saw a drop-off of 28% from Q4 216 to Q4 217, signaling a slowing in the investment markets. - had the eighth highest sales volume in 217, behind the major coastal markets and Chicago. Q4 217 Significant Sales Transactions (5, or greater) PROPERTY SUBMARKET SALE DATE SALE PRICE SIZE () P CLASS BUYER Frisco Square Far North Dec-17 $45,5, 396,689 $115 A Maxus Realty Trust Hidden Grove at 44 Park Central LBJ Nov-17 $25,562,79 232,389 $111 A Trinity Private Equity Group FedEx Office Hequarters Far North Nov-17 $79,65, 264, $32 A PRP Property Management, AXA Equitable Financial Services Trinity Towers Stemmons Oct-17 $5,, 634,381 $79 A Stanton Road Capital, LLC One Allen Center North US 75 Corridor Oct-17 $31,6, 15,59 $21 B Accesso Partners Zales Corporation HQ Las Colinas Oct-17 $14,745, 358,884 $41 A CW Capital 6 - Research & Forecast Report Q4 217 Office Colliers International

7 Quoted Gross Rental s for Existing Top Performing Office Buildings BUILDING NAME ADDRESS SUBMARKET RBA YEAR BUILT % LEASED AVAILABLE SPACE QUOTED RATE OWNER NAME +E BUILDINGS KPMG Plaza at Hall Arts 2323 Ross Ave 459, % 11,33 $48. +E 2323 Ross Holdings, LLC 1919 McKinney 1919 McKinney Ave Uptown/Turtle Creek 118, % 56,377 $38. +E Ecom Real Estate Mgmt, Inc. Chase Tower 22 Ross Ave 1,255, % 37,873 $ E Fortis Property Group, LLC Tollway Center Pky Far North 197, % 18,64 $34.5 +E Cawley Management, LLC Premier Place 591 N Central Expy Central Expressway 49, % 56,168 $34.5 +E CBRE Global Investors Ltd Frisco Bridges Place 26 N Pky Far North 17, % 18,5 $34.5 +E Randy Heady & Company Realtors NNN BUILDINGS 21 McKinney 21 McKinney Ave Uptown/Turtle Creek 36, % 32,725 $39.25 NNN NY State Common Retirement Fund The Star 1 Cowboys Way Far North 397, % 74,452 $39. NNN City of Frisco McKinney & Olive 221 McKinney Ave Uptown/Turtle Creek 536, % 44,184 $38. NNN Crescent Real Estate Equities LLC 19 Pearl 19 N Pearl St 261, % 28,769 $37. NNN 19 Pearl Street JV, LLC Terraces at Douglas Center 596 Berkshire Ln Preston Center 171, % 154,357 $35.5 NNN Lionstone Investments Harwood No N Harwood St Uptown/Turtle Creek 176, % 2,678 $35. NNN Harwood International Q4 217 HIGHLIGHTS TOTAL OFFICE INVENTORY 152.M 33.7M 15.7M 27.9M TOTAL INVENTORY BY CLASS CLASS A: 46% CLASS B: 46% CLASS C: 8% TOTAL: 8.9M SUBMARKET FAR NORTH DALLAS LAS COLINAS UPTOWN/TURTLE CREEK NORTH US-75 CORRIDOR MID-CITIES 2.9M 1.9K 1.3M 667K 665K UNDER CONSTRUCTION 26.% ANNUALLY CURRENT 15.8% 1,83,524 NET ABSORPTION MULTI-TENANT OFFICE BUILDINGS BY SIZE 25K-5K 5K-1K 1K-25K 25K-5K 5K-1M 1 MILLION+ NUMBER OF BUILDINGS TOTAL SQUARE FEET M 15% M 2.9% M 2.4% M 19.9% M 22.5% 16 22M 25.9% 7 - Research & Forecast Report Q4 217 Office Colliers International

8 38 OFFICE SUBMARKET MAP LLT NORTHWEST FORT WORTH SOUTHWEST FORT WORTH ALLIANCE / FOSSIL CREEK 14 35W 35W FW 5 35W B W WEST LAKE / GRAPEVINE NORTHEAST FORT WORTH SOUTHEAST FORT WORTH DENTON HURST / EULESS / BEDFORD ARLINGTON 287B LLT 35E LEWISVILLE DFW / FREEPORT COPPELL OFFICE CTR WEST LBJ EXT SOUTH IRVING 48 GRAND PRAIRIE URBAN CENTER WINGREN 33 FRISCO THE COLONY E DNT DNT UPPER TOLLWAY PLANO QUORUM BENT TREE DNT WEST LBJ 4 PRESTON CENTER STEMMONS FREEWAY 16 SOUTHWEST DALLAS 7 DNT UPTOWN / TURTLE CREEK DALLAS 35E EAST LBJ PLANO 19 RICHARDSON CENTRAL EXPWY WHITE ROCK 635 ALLEN / McKINNEY MESQUITE FORNEY TERRELL GARLAND ROCKWALL SOUTHEAST DALLAS Central Expressway 1 North 157 Bldgs 14.1m 11% Vac UC = None $ P 11 Bldgs 4.7m 11.4% Vac UC = 57K $ 2.38 P 2 11 Northeast 19 Bldgs 32.4m 23.1% Vac UC = 424.4K $ P 9 Bldgs 4.5m 41% Vac UC = None $ 2.44 P 3 East Preston Center 32 Bldgs 9.3m 8.9% Vac UC = 341.3K $ P 6 Bldgs 5.7m 11.2% Vac UC = 119K $ 4.6 P 4 Far North 13 North US 75 Corridor 623 Bldgs 58.8m 13.1% Vac UC = 2,872K $ 28.4 P 57 Bldgs 38m 17.6% Vac UC = 653K $ P 5 14 South 82 Bldgs 1.7m 1.5% Vac UC = 28.5K $ P 39 Bldgs 15m 8.3% Vac UC = 152.4K $ P 6 Las Colinas 15 Southwest 339 Bldgs 39.6m 14.3% Vac UC = K $ P 162 Bldgs 4.8m 8.5% Vac UC = None $ P 7 LBJ 16 Stemmons 196 Bldgs 22.3m 22.5% Vac UC = None $ P 176 Bldgs 14.3m 23.1% Vac UC = None $ P 8 Denton / Lewisville 17 Uptown / Turtle Creek 276 Bldgs 1.2m 13.8% Vac UC = 48.2K $ P 113 Bldgs 13.7m 11.3% Vac UC = 1,35K $ P 9 Mid-Cities Market 732 Bldgs 32.5m 15.6% Vac UC = 665.9K $ P 4,487 Bldgs 33.5m 15.8% Vac UC = 8,866K $ P RESEARCHERS: MIKE OTILLIO Director of Research DIRECT mike.otillio@colliers.com KARI BEETS Research Associate DIRECT kari.beets@colliers.com Copyright 218 Colliers International. Copyright The information 215 contained Colliers International. herein has been obtained from CoStar, Real Capital Analytics, The and other information primary contained and secondary herein has sources been deemed obtained reliable. from sources While every deemed reasonable reliable. effort While every has been reasonable made to effort ensure has its been accuracy, made we to ensure cannot its guarantee accuracy, it. we No cannot responsibility guarantee is assumed it. No responsibility for any inaccuracies. is assumed Readers for any are inaccuracies. encouraged to Readers consult are their encouraged professional to consult advisors their prior to professional acting on any advisors of the material prior to contained acting in any this of report. the material contained in this report. Colliers International Market 1717 Address, McKinney Suite Avenue, # Suite 9, Address, Texas 7522 Suite # colliers.com/<<market>> colliers.com/dallasfortworth 8 North American Research & Forecast Report Q4 214 Office Market Outlook Colliers International

9 Research & Forecast Report DALLAS-FORT WORTH OFFICE Q3 217 Large corporate relocations propel DFW absorption Mike Otillio Director of Research Kari Beets Research Associate Large corporate relocations continue to generate buzz in the - real estate market. So far, Far North has seen more absorption in 217 than the whole market had in all of 216. After delivering their 2.1 million square foot headquarters in June 217, Toyota has occupied the space, accounting for 7% of Far North absorption. 217 has already exceeded 216 s annual net absorption by 1.1 million square feet. Multitenant office product has accounted for only 2% of the total net absorption and is lagging behind the same period in 216 by almost a million square feet. Corporate relocations have been the fuel for this DFW real estate boom, but will this continue? In September, Amazon unleashed a flurry of speculation by announcing it will build HQ2 a second headquarters located in another major North American metro. The announcement sparked hundreds of proposals from cities and developers across the metroplex hoping that they have what it takes to attract one of the largest, most innovative companies in the nation. While prices have increased and the labor market is tightening, DFW still compares favorably to many competitors. Amazon already has an office presence in Galleria Towers and over 8 million square feet of warehouse space. Could Amazon be DFW s next big Toyota? A Look Ahead > Major corporate move-ins will boost 217 s net absorption significantly higher than in 216. To keep this from being the peak, DFW will need to woo more corporate relocations, as in-market expansions are insufficient to maintain such high demand. > Construction activity will continue to taper, as major corporate campuses deliver and new groundbreakings slow. So far in 217, 49 buildings totaling 2.5 million square feet have broken ground, just over a quarter of the 8.8 million square feet that broke ground in 216. Barring any major corporate announcements, expect construction starts to slow as vacancy is higher than in 215 and lenders are skittish about being caught at the end of the cycle. Market Indicators Relative to prior period orption Under Construction Rental *Projected Summary Statistics DFW Office Market DFW Market DFW Class A DFW Class B 15.5% 17.2% 14.7% Change from prior Quarter.% -.2%.% Absorption (Thousand Square Feet) New Supply (Thousand Square Feet) Under Construction (Thousand Square Feet) Asking Rents Per Square Foot Per Year Annual Change Quarterly Change Quarterly Forecast* 9,451 8,43 1,22 Average (Gross) $25.47 $29.45 $21.22 Change from prior Quarter 1.5% 1.5% 1.5% Year-Over-Year Change 5.1% 4.4% 5.%

10 Market Highlights > Job growth slowed slightly in DFW, as the metro added less than 1, jobs from August 216 to August 217. Year-to-date has outperformed, with employment growth at an annualized 1.6% to 1.1% respectively. The unemployment rate in increased slightly to 3.9% but continues to trail the nationwide rate of 4.5%. Manufacturing and Mining and Construction led the metro with over 3% employment growth each, while office-using sectors experienced modest 1-2% growth. > The market delivered 87, square feet in Q3 217, and approximately 4% was leased. After the Toyota North American Headquarters delivered in Q2 217, the construction pipeline after Q3 was about 57% multitenant speculative office, and the overall pipeline was 6% leased or owned. The overall vacancy rate was flat at 15.5% from Q2 217 to Q The vacancy rate has held steady at 15.5% throughout 217. Class A vacancy decreased.2% to 17.2% from Q2 to Q3, Class B vacancy remained the same as last quarter at 14.7%. Far North saw the largest improvement from the prior quarter, dropping from 14.1% in Q2 to.7% in Q3 as several new projects saw significant move-ins. LBJ has the highest year-over-year improvement, lowering the vacancy rate 2.4% to 21.9%. It is likely this trend will continue as tenants experience higher rental rates in the Far North area, Preston Center, and now along Central Expressway. New Supply, Absorption & 7,5 New Supply Absorption 25% Job Growth & Unemployment (not seasonly adjusted) Unemployment 8/216 8/217 DFW 4.1% 3.9% Texas 4.9% 4.5% U.S. 5.% 4.5% Job Growth Annual Change # of Jobs Added DFW 2.8% 96.7k Texas 2.4% 286.3k U.S. 1.5% 2,99.k Class A Office Rents & 2% $35 Thousands of Square Feet 5, 2,5 2% 15% 1% 5% 18% 16% 14% % $31 $27 $23 $19 Rental (Gross) Rental s Rental rates continued to climb faster in 217 than they had in 216. Overall rates rose 1.5% from Q2 to Q3, reaching $25.47 overall 5.4% higher than this same time in 216. Class A rates were up 1.5% as well, rising to $29.45 overall, and Class B rates broke $21 for the first time. Central Expressway saw the highest increase in rates from $27.21 in Q2 up 1.1% to $29.97 in Q3. Preston Center saw overall rates jump 7.6%, due to the start of construction on Park Plaza at 6517 Hillcrest Ave. The only office building in the elite University Park neighborhood is asking rates of $55 triple net for the 119, square foot property. This pushed Preston Center s Class A average to $42.17, surpassing Uptown s average of $4.78 for Class A space. Absorption & Demand Net absorption slowed in Q3 217, totaling less than 5, square feet. The 2.1 million square foot Toyota North American Headquarters registered as being fully occupied in Q2 217, raising Q2 s absorption total to 2.5 million square feet. Although market-wide absorption is strong, eight of the seventeen submarkets have negative year-to-date net absorption. While there is significant overall growth, it is disproportional in Far North (3 million ) and Las Colinas (1 million ); all other submarkets have seen less than 3, square feet of absorption each. While Class A net absorption is reaching levels not seen since the early 2s, Class B net absorption shows the opposite trend, with only 116, square feet through Q3. This is the lowest total seen in the first three quarters since 23. % Thousands of Square Feet 1% $ Class A Rental Market Rental Class A Market Class A, B & C Office Absorption 5, 4,5 4, 3,5 3, 2,5 2, 1,5 1, Class A Class B Class C 2 - Research & Forecast Report Q3 217 Office Colliers International

11 - Downtown & Suburban Office Market Summary EXISTING PROPERTIES NET ABSORPTION CONSTRUCTION RENT Submarket Bldgs Inventory Direct Sublease Vacant Current Prior Qtr Current Qtr New Supply Under Construction Average (FS) DOWNTOWN AND SUBURBAN MARKETS Class A Suburban Suburban DFW Market 28 23,375, % 1.9% 6,35, % 26.3% (22,64) (64,6) 92, , ,889, %.5% 811, % 13.8% ,537 28, ,116, % 1.2% 17,764, % 15.8% 1,114,587 4,48,251 4,743,137 7,728, ,911, %.9% 982,942 2.% 16.9% (152,247) (199,42) 16,781 98, ,293, % 1.3% 25,99, % 17.4% 76,386 4,322,362 4,996,155 8,429,754 $27.39 $29.73 $3.29 $24.66 $29.45 Class B Suburban Suburban DFW Market 36 5,99,2 15.4%.5% 939, % 17.3% 82,675 (23,68) 44 4,53, %.3% 346, % 8.5% (3,235) 19,584 5,88, %.7% 18,372, % 14.6% 99,825 42, ,58 9, ,1, %.6% 2,3, % 16.2% ,564 85,892 1,75 149,152, %.7% 21,971, % 14.7% 179, ,199 1,3,95 1,21,5 $21.1 $2.17 $21.29 $2.9 $21.22 Class C Suburban Suburban DFW Market 45 3,152, %.% 257, % 7.8% (,345) (41,653) ,554.3%.% 2,7.3%.2% (75) (2,7) ,582,846.1%.1% 2,42,63.3% 1.% (437,638) (263,662) 213 4,634,76 6.6%.% 34, % 6.7% 3,77 77,576 1,95 28,35, %.1% 2,966, % 9.% (447,26) (229,89) $17.73 $2.39 $18.31 $18.82 $18.35 All Classes Suburban Suburban DFW Market 19 32,436, % 1.5% 7,546, % 22.9% (132,31) (9,339) 92, , ,68, %.4% 1,16, % 1.9% (3,299) 3,51 28,489 3,668 26,788, %.9% 38,539, % 14.8% 776,774 4,259,32 5,661,195 8,629, ,647, %.6% 3,6, % 14.4% (148,421) (44,28) 246, ,572 4, ,481, %.9% 5,847, % 15.5% 492,744 4,28,752 6,,15 9,451,254 $26.47 $26.39 $25.55 $21.68 $25.47 QUARTERLY AND ANNUAL HISTORICAL COMPARISONS 217 Q3 4, ,481, %.9% 5,847, % 15.5% 492,744 4,28,752 6,,15 9,451, Q2 4, ,64, %.8% 5,473, % 15.5% 2,494,56 3,716,8 5,133,146 9,636, Q1 4, ,638, %.8% 5,51, % 15.3% 1,221,448 1,221,448 2,18,784 11,728, Q4 4, ,457, %.7% 49,92, % 15.2% 475,733 3,117,471 5,254,372,923, Q3 4,361 32,538, %.7% 48,648, % 15.3% 1,838,94 2,641,738 4,334,913,775, Q3 4, ,78, %.6% 46,824, % 14.7% 1,36,91 5,335,358 5,968,38 6,958, Q3 4,217 38,114, %.7% 46,83, % 15.7% 2,52,881 5,153,437 3,97,654 7,266,2 213 Q3 4,154 34,383, %.6% 49,33, % 16.5% 2,3,487 2,416,22 1,823,875 5,789,953 2 Q3 4,115 32,279, %.6% 49,834, % 16.8% 1,37,175 1,89,676 1,32,425 2,696,15 $ $ 25.1 $ $ $ $ $ 21.4 $ 2.37 $ Research & Forecast Report Q3 217 Office Colliers International

12 - Office Submarket Summary EXISTING PROPERTIES NET ABSORPTION CONSTRUCTION RENT Colliers Markets Bldgs Inventory Direct Sublease Vacant Current Prior Qtr Current Qtr New Supply Under Construction Average (FS) Class A Central Expressway 22 7,7,741.5%.1% 892,781.6% 13.% 24,291 56,727 $ ,375, % 1.9% 6,35, % 26.3% (22,64) (64,6) 92, ,11 $ East 2 14, % 1.% 2, % 1.1% (6,67) (6,67) 294,82 $ Far North ,985, % 1.4% 4,23, % 11.8% 149,354 2,922,223 3,22,67 4,59,284 $ Fort Worth 17 5,889, %.5% 811, % 13.8% ,537 28,489 $ Las Colinas 82 19,747,84.3% 1.4% 2,716, % 15.2% 42,991 1,13, ,42 671, $ 3.14 LBJ 37 1,684, % 1.7% 2,53, % 24.7% 133,753,676 $ Lewisville / Denton 6 474, %.%,62 2.7% 2.7% $ Mid-Cities 43 8,337, %.2% 1,642, % 2.9% 189,685 (157,45) 472,65 435, $ North 3 725, %.% 233, % 2.6% (214,443) (28,623) $ 2.1 Northeast 2 414, %.% 37, % 74.7% 2,796 3,882 $ Preston Center 22 4,189,59 8.5%.9% 391, % 9.2% (7,251) (74,967) 29,583 $ North US 75 Corridor 69 14,415, % 2.1% 3,595, % 24.9% 217, ,75 3, 173,441 $ South 24 3,771, % 1.2% 442, % 13.3% 59,4 (21,679) 16,781 98,497 $ 3.37 Southwest 3 352,67 4.4%.% 15,5 4.4% 3.9% (1,836) $ Stemmons 14 4,797, %.2% 853, % 18.2% 21, ,516 63, $ Uptown / Turtle Creek 46 1,919, %.8% 1,97,262 1.% 1.% (9,14) 246,29 2, 1,273,53 $ 4.78 DFW Market ,293, % 1.3% 25,99, % 17.4% 76,386 4,322,362 4,996,155 8,429,754 $ Class B Central Expressway 86 6,1, %.3% 576, % 8.5% (65,118) (11,815) $ ,99,2 15.4%.5% 939, % 17.3% 82,675 (23,68) $ 21.1 East 181 6,621,16 8.%.2% 543, % 8.% (,435) (96,957) 3, $ 2.53 Far North 44 21,383, %.6% 3,17, % 15.2% 143,76 91,51 13, ,68 $ 22.7 Fort Worth 44 4,53, %.3% 346, % 8.5% (3,235) 19,584 $ 2.17 Las Colinas ,429, % 1.3% 2,78, % 14.6% (93,6) (19,248) 339, ,913 $ 21.2 LBJ 8 1,958, %.8% 2,285, % 21.3% 47,36 82,776 $ 19.4 Lewisville / Denton 22 8,164, % 1.4% 846, % 1.5% 79,817 (,855) 17,778 3,134 $ Mid-Cities ,729, %.3% 2,714, % 13.4% (194,117) (13,156) 26, 171,649 $ 2.55 North 73 3,297, % 1.8% 241,94 7.3% 6.9% 618 (18,531) 38,94 7,65 $ Northeast 51 3,68, %.% 1,411, % 46.7% 21,6 67,72 $ Preston Center , %.% 74, % 9.%,172 19,94 $ North US 75 Corridor 386 2,522,535.6%.3% 2,638,979.9% 13.% 85, , , ,893 $ 21.2 South 21 7,735, %.4% 66, % 7.9% (22,111) 29,23 46,952 51,1 $ Southwest 89 3,49, %.1% 35, % 11.8% 57, ,939 72,28 1,744 $ Stemmons 99 7,682, %.8% 2,77,15 27.% 27.3% 22,6 (39,174) $ Uptown / Turtle Creek 46 2,573,67 9.5% 5.2% 377, % 14.8% 15,455 (75,32) 14,765 31,484 $ DFW Market 2, ,152, %.7% 21,971, % 14.7% 179, ,199 1,3,95 1,21,5 $ Research & Forecast Report Q3 217 Office Colliers International

13 - Office Submarket Summary EXISTING PROPERTIES NET ABSORPTION CONSTRUCTION RENT Colliers Markets Bldgs Inventory Direct Sublease Vacant Current Prior Qtr Current Qtr New Supply Under Construction Average (FS) Class C Central Expressway ,1 4.4%.3% 42, % 4.4% (2,36) 22,8 $ ,152, %.% 257, % 7.8% (,345) (41,653) $ East 117 2,641,866 9.%.2% 242,95 9.2% 8.9% (7,689) (24,493) $ Far North , % 1.6% 147, % 16.4% 8,55 (19,64) $ Fort Worth ,554.3%.% 2,7.3%.2% (75) (2,7) $ 2.39 Las Colinas 22 1,28, %.% 98, % 6.3% (23,245),865 $ LBJ , %.% 96, % 25.3% 64,55 61,85 $ Lewisville / Denton 73 1,641,26 4.1%.1% 69, % 3.1% (19,18) (9,58) $ Mid-Cities 28 4,872,854.5%.% 66,922.5% 11.6% (42,188) 29,29 $ North 29 53,79.6%.% 3,97.6% 2.% 7,754 35,138 $ Northeast ,11 9.2%.% 91,69 9.2% 9.3% 335 (5,944) $ Preston Center , %.% 18, % 5.5% 2,419 55,599 $ North US 75 Corridor 14 2,475, %.% 6, % 6.3% (444,3) (457,761) $ South 146 3,1, %.% 29, % 6.6% (4,382) 48,382 $ Southwest 67 1,399,35 2.9%.% 41, % 3.8% 11,68 16,4 $ Stemmons 62 1,963, %.% 397, % 2.8% 11,627 51,379 $ 14.1 Uptown / Turtle Creek , %.5% 39, % 8.6% 2,453 (697) $ 32.9 DFW Market 1,95 28,35, %.1% 2,966, % 9.% (447,26) (229,89) $ All Classes Central Expressway ,989,73 1.6%.2% 1,5, 1.8% 1.5% (43,187) (23,8) $ ,436, % 1.5% 7,546, % 22.9% (132,31) (9,339) 92, ,11 $ East 3 9,43, %.2% 85, % 8.3% (26,191) (7,517) 324,82 $ Far North 6 57,32, % 1.1% 7,278,429.7% 13.2% 31,664 2,994,84 3,6,364 4,728,892 $ Fort Worth 82 1,68, %.4% 1,16, % 1.9% (3,299) 3,51 28,489 $ Las Colinas ,385, % 1.3% 5,596, % 14.6% 286,74 1,96,891 1,24, ,913 $ LBJ ,28, % 1.2% 4,885, % 23.% 245, ,537 $ Lewisville / Denton 281 1,28, % 1.2% 928,63 9.% 8.9% 6,799 (22,363) 17,778 3,134 $ Mid-Cities ,939, %.2% 4,963, % 15.1% (46,62) (231,172) 498,65 66,649 $ North 15 4,554,83 9.2% 1.3% 477,84 1.5% 5.7% (26,71) (192,16) 38,94 7,65 $ Northeast 91 4,474,1 4.5%.% 1,81, % 41.% 24,743 92,1 $ Preston Center 59 5,543, %.7% 485,3 8.7% 8.9% 7, ,583 $ 4. North US 75 Corridor ,413, % 1.% 6,835, % 17.1% (141,211) (163,938) 554,434 55,334 $ South 38 14,619, %.5% 1,3,263 9.% 9.% 32,97 55,726 27, ,57 $ Southwest 159 4,81, %.1% 47,4 8.5% 8.8% 67, ,339 72,28 1,744 $ Stemmons ,444, %.5% 3,327, % 23.4% 55, ,721 63, $ Uptown / Turtle Creek ,986, % 1.6% 1,515,91 1.8% 1.8% 8,894 17,21 214,765 1,35,14 $ 39.7 DFW Market 4, ,481, %.9% 5,847, % 15.5% 492,744 4,28,752 6,,15 9,451,254 $ NOTE: Statistical set consists of office properties 1, and up, including owner-occupied properties; and excluding medical office and properties where the government is 1% owner and occupier. While CoStar attempts to provide the most accurate data at the end of every quarter, revisions are made throughout the year accounting for discrepancies in past reporting. Sources: CoStar Property, Colliers Research 5 - Research & Forecast Report Q3 217 Office Colliers International

14 Leasing Activity Leasing activity continues to lag behind 216. Leasing activity for Q3 was 3.9 million square feet, and year-to-date activity is.9 million square feet. Q3 217 Top Office Lease Transactions TENANT PROPERTY SUBMARKET LEASED BUILDING CLASS DEAL TYPE SIGN DATE NTT DATA, Inc* 651 Legacy Dr Far North 232,744 A New Sep-17 Frontier Communications 85 S Central Expy North US-75 Corridor 83,662 B Renewal Jul-17 GENPACT 33 E Renner Rd North US-75 Corridor 63,63 B New Jul-17 Alkami Technology 561 Granite Pky Far North 53,15 A New Sep-17 Cognizant 51 Statesman Dr Las Colinas 48,277 B New Aug-17 WeWork 549 Edwards Ranch Rd South 47,714 B New Sep-17 Albertson, LLC 241 E Randol Mill Rd Mid-Cities 45,74 B New Aug-17 The University of Texas at 3-33 Waterview Pky North US-75 Corridor 45,642 B New Jul-17 XTO Energy 81 Grove St 43,985 B New Aug-17 The Delta Companies 31 Olympus Blvd Las Colinas 38, A New Jul-17 Weaver 2821 W 7th St South 36,334 A Renewal Aug-17 Learfield Communications, LLC 24 N Pky Far North 33,264 A Renewal Jul-17 WeWork 3 Throckmorton St 31,296 A New Sep-17 Regus 222 W Las Colinas Blvd Las Colinas 31,6 A Renewal Aug-17 Convergys Corporation Waterview Pky North US-75 Corridor 29,524 A New Jul-17 Q3 217 Significant Sales Transactions (5, or greater) PROPERTY SUBMARKET SALE DATE SALE PRICE SIZE () P CLASS BUYER Raytheon Headquarters North US-75 Corridor Aug-17 $11,1, ,323 $226 A Property Reserve Inc (Church of LDS) One Twenty Five Las Colinas Sep-17 $83,545, ,39 $189 A KBS Strategic Opportunity REIT Turtle Creek Village Uptown / Turtle Creek Jul-17 $6,, ,678 $19 A CIM Group Preston Plaza Preston Center Aug-17 $39,628, ,9 $153 A Tanglewood Property Group Gramercy Center Far North Jul-17 $34,99, ,155 $133 B ATCAP Partners Berkshire at Preston Center Preston Center Sep-17 $68,425,5 182,468 $375 A TA Realty 2811 McKinney Avenue Uptown / Turtle Creek Sep-17 $29,3,242 94,95 $311 B Western Securities LTD Rochelle Park Las Colinas Sep-17 $9,999,978 8,418 $4 B Young Woong Park One Preston Center Preston Center Jul-17 $17,618, 76,6 $23 A Pillar Commercial (JV with Artemis) Uptown Court Uptown / Turtle Creek Aug-17 $23,699,791 75,956 $3 B Hall Capital *Colliers Transaction - Represented Landlord Sales Activity Investment activity in 217 has been steady, surpassing the volume through three quarters of 214 and 215, while lagging considerably behind the unusually high total for 216. Year-to-date, the market has seen $3.2 billion in office sales, about $4 million behind the first three quarters of 216, but ahead of the $2.4 billion sold through Q1-Q Sources: RCA, Costar, Colliers Research 6 - Research & Forecast Report Q3 217 Office Colliers International

15 Quoted Gross Rental s for Existing Top Performing Office Buildings BUILDING NAME ADDRESS SUBMARKET RBA YEAR BUILT % LEASED AVAILABLE SPACE QUOTED RATE OWNER NAME +E BUILDINGS KPMG Plaza at Hall Arts 2323 Ross Ave 459, % 87,757 $48. +E 2323 Ross Holdings, LLC Chase Tower 22 Ross Ave 1,255, % 347,942 $35. +E Ecom Real Estate Mgmt, Inc Tollway Center Pky Far North 197, % 28,64 $34.5 +E Lionstone Investments Premier Place 591 N Central Expy Central Expressway 49, % 88,674 $34.5 +E Fortis Property Group, LLC Frisco Bridges Place 26 N Pky Far North 17, % 34,389 $34.5 +E Intercity Investment Properties, Inc The Urban Towers 222 W Las Colinas Blvd Las Colinas 848, % 168,39 $34.5 +E Westdale RE Investment & Mgmt NNN BUILDINGS The Star 1 Cowboys Way Far North 397, % 74,452 $39. NNN City of Frisco No N Harwood St Uptown /Turtle Creek 231, % 22,549 $38.9 NNN Harwood International McKinney & Olive 221 McKinney Ave Uptown /Turtle Creek 536, % 44,184 $38. NNN Crescent Real Estate Equities LLC 19 Pearl 19 N Pearl St 261, % 28,769 $37. NNN 19 Pearl Street JV, LLC The Terraces at Douglas Ctr 596 Berkshire Ln Preston Center 171, % 171,583 $35.5 NNN Lionstone Investments The Epic Deep Ellum Good Latimer Expy & Elm S East 294, % 294,82 $35. NNN Westdale/KDC Q3 217 HIGHLIGHTS TOTAL OFFICE INVENTORY 15.3M 327.5M 149.2M 27.9M TOTAL INVENTORY BY CLASS CLASS A: 46% CLASS B: 46% CLASS C: 8% TOTAL: 11.5M SUBMARKET FAR NORTH DALLAS UPTOWN/TURTLE CREEK LAS COLINAS MID-CITIES NORTH US-75 CORRIDOR 4.7M 1.3M 827K 66K 55K UNDER CONSTRUCTION 26.% ANNUALLY CURRENT 15.5% 429,744 NET ABSORPTION MULTI-TENANT OFFICE BUILDINGS BY SIZE 25K-5K 5K-1K 1K-25K 25K-5K 5K-1M 1 MILLION+ NUMBER OF BUILDINGS TOTAL SQUARE FEET M 13.9% M 2.% M 19.9% M 2.6% M 22.4% M 24.8% 7 - Research & Forecast Report Q3 217 Office Colliers International

16 38 OFFICE SUBMARKET MAP LLT NORTHWEST FORT WORTH SOUTHWEST FORT WORTH ALLIANCE / FOSSIL CREEK 14 35W 35W FW 5 35W B W WEST LAKE / GRAPEVINE NORTHEAST FORT WORTH SOUTHEAST FORT WORTH DENTON HURST / EULESS / BEDFORD ARLINGTON 287B LLT 35E LEWISVILLE DFW / FREEPORT COPPELL OFFICE CTR WEST LBJ EXT SOUTH IRVING 48 GRAND PRAIRIE URBAN CENTER WINGREN 33 FRISCO THE COLONY E DNT DNT UPPER TOLLWAY PLANO QUORUM BENT TREE DNT WEST LBJ 4 PRESTON CENTER STEMMONS FREEWAY 16 SOUTHWEST DALLAS 7 DNT UPTOWN / TURTLE CREEK DALLAS 35E EAST LBJ PLANO 19 RICHARDSON CENTRAL EXPWY WHITE ROCK 635 ALLEN / McKINNEY MESQUITE FORNEY TERRELL GARLAND ROCKWALL SOUTHEAST DALLAS Central Expressway 1 North 155 Bldgs 14m 1.8% Vac UC = None $ P 15 Bldgs 4.6m 1.5% Vac UC = 7.1K $ P 2 11 Northeast 19 Bldgs 32.4m 23.3% Vac UC = 322.1K $ P 91 Bldgs 4.5m 4.5% Vac UC = None $ P 3 East Preston Center 3 Bldgs 9.4m 8.6% Vac UC = 324.8K $ P 59 Bldgs 5.5m 8.7% Vac UC = 29.6K $ 4. P 4 Far North 13 North US 75 Corridor 6 Bldgs 57.3m.7% Vac UC = 4,729K $ P 559 Bldgs 37.4m 18.3% Vac UC = 55K $ P 5 14 South 82 Bldgs 1.6m 1.9% Vac UC = 28.5K $ P 38 Bldgs 14.6m 9% Vac UC = 149.5K $ P 6 Las Colinas 15 Southwest 336 Bldgs 39.4m 14.2% Vac UC = 826.9K $ P 159 Bldgs 4.8m 8.5% Vac UC = 1.7K $ P 7 LBJ 16 Stemmons 196 Bldgs 22.3m 21.9% Vac UC = None $ P 175 Bldgs 14.4m 23% Vac UC = None $ P 8 Denton / Lewisville 17 Uptown / Turtle Creek 281 Bldgs 1.3m 9% Vac UC = 3.1K $ P 114 Bldgs 14m 1.8% Vac UC = 1,35K $ 39.7 P 9 Mid-Cities Market 722 Bldgs 31.9m 15.5% Vac UC = 66.6K $ P 4,435 Bldgs 327.5m 15.5% Vac UC = 9,451K $ P RESEARCHERS: MIKE OTILLIO Director of Research DIRECT mike.otillio@colliers.com KARI BEETS Research Associate DIRECT kari.beets@colliers.com Copyright Colliers International. The information contained herein has been obtained from sources deemed reliable. While every While every reasonable reasonable effort has effort been has made been to made ensure to ensure its accuracy, its accuracy, we cannot we cannot guarantee guarantee it. No responsibility it. No responsibility is assumed is assumed for any for inaccuracies. any inaccuracies. Readers Readers are encouraged are encouraged to consult to consult their professional their professional advisors advisors prior prior to acting to acting on any on of any the of material the material contained contained this in report. this report. Colliers International Market 1717 Address, McKinney Suite Avenue, # Suite 9, Address, Texas 7522 Suite # colliers.com/<<market>> colliers.com/texas/dallas 8 North American Research & Forecast Report Q4 214 Office Market Outlook Colliers International

17 Research & Forecast Report DALLAS-FORT WORTH OFFICE Q2 217 Optimism still high in DFW office market Mike Otillio Director of Research Kari Beets Research Associate The flight to quality continues to be a trend throughout the market. As the U.S. economy continues slow, steady growth tenants are taking advantage of the opportunity to restructure and refresh their space. For some, this means consolidating space in a higherquality building by creating open office concepts or eliminating storage, causing negative market-wide absorption for Class B in the first half of the year. Examples of this include EnLink Midstream, who recently moved from Class B space in Uptown to One Arts Plaza, and Pioneer Natural Resources, who was in Class A space in Williams Tower but was optimistic enough to kick-start its new headquarters in the mixed-use Hidden Ridge development in Las Colinas. Also during this quarter, we saw the fulfillment of Legacy West s vision. Legacy West Urban Village held its grand opening in June with most of its 3, square feet of space leased. For the office market, Toyota moved its first batch of employees into its new campus and will continue moving people in throughout the year. Gaedeke s big bet of speculative space in Far North paid off with the move-in of NTT Data. However, there are still concerns about traffic and lack of public transit options to attract retail workers who cannot afford rising costs in the northern suburbs. A Look Ahead > Rental rates will continue to rise in key submarkets as landlords shift the rent structure to triple net, raising the overall cost to the tenant. While Uptown began this trend, it has rippled into other markets such as Preston Center and Far North and is beginning to catch on in Las Colinas. Expect overall rental rates to rise 5-7% in major submarkets over the next year. > Sky-high land prices in Uptown will discourage future office developers The Union may be the last large office project in the submarket for this cycle. We will continue to see reinvestment in the areas adjacent to Uptown such as the Arts District and. Market Indicators Relative to prior period orption Under Construction Rental *Projected Summary Statistics DFW Office Market DFW Market DFW Class A DFW Class B 15.4% 17.2% 14.7% Change from prior Quarter.2%.1%.2% Absorption (Thousand Square Feet) New Supply (Thousand Square Feet) Under Construction (Thousand Square Feet) Asking Rents Per Square Foot Per Year Annual Change Quarterly Change , Quarterly Forecast* 11,61 1,43 1,18 Average $25.13 $28.99 $21.5 Change from prior Quarter 1.3%.9% 1.7% Year-Over-Year Change 4.9% 3.6% 5.7%

18 Market Highlights > The pace of DFW s job growth slowed slightly, but the metroplex still added 317 jobs per day. Labor force saturation is starting to be a concern with DFW s unemployment rate at 3.8%,.3% below the national average. However, this is not slowing corporate tenants hiring spree. People continue to move to DFW for jobs and companies continue to move for the labor. > The construction pipeline remains split between build-to-suits and spec office space. Spec properties that delivered in Q2 217 were 54% leased at the end of the quarter, and of the 11 million square feet under construction, 65% were leased. The vacancy rate continued its gradual climb. increased slightly from 15.2% in Q1 217 to 15.4% in Q Class A vacancy increased.1% to 17.2%, and Class B vacancy increased.2% to 14.7%. Far North and the both saw a.6% improvement in overall vacancy rate from Q1 to Q2. New developments continue to see high activity in Far North as new projects saw significant absorption this quarter, including The Star in Frisco (67, ), Legacy West (66, ), and One Legacy West (NTT Data - 6, ). Despite several large move-outs, the still improved its overall vacancy rate largely due to the Aloft hotel taking 1, square feet out of the market in One City Place, the old Radio Shack building. New Supply, Absorption & Thousands of Square Feet 7,5 5, 2,5 Rental s Rental s continue to break records as rates rose to a new overall high of $ This is the first time the DFW market has topped $25 overall. Class A rental rates almost broke a new barrier, reaching $28.99 overall. Las Colinas saw the greatest increase in average asking rates of all the major markets increasing 5% to $ East has also seen a 29% leap in rental rates from the prior year due solely to the start of construction and leasing for The Epic, whose asking rates of $35. triple net seem more in line with Uptown than artsy Deep Ellum. Class A rental rates in Uptown continue to hold steady, increasing only.8% quarter-overquarter and 4.2% year-over-year, a decline from large jumps seen in 215. Absorption & Demand New Supply Absorption Net absorption for Q2 217 was 59,727 square feet, one-third of the prior quarter s absorption level. Year-to-date net absorption stands at 2 million square feet, 8, square feet ahead of this time in 216. With several large properties still expected to deliver by year-end, the market continues to be on track for a record year. Far North saw the highest absorption level, bolstered by Toyota starting its move to its North American Headquarters, occupying 4, square feet of its 2 million square foot campus. Mid-Cities saw the largest negative absorption, as CoreLogic, who moved into its new Hackberry Creek headquarters last quarter, vacated 22, square feet at Solana. While many submarkets showed strong positive absorption in the quarter, Las Colinas, Mid-Cities, and Northeast all had approximately 1, square feet of negative absorption, significantly lowering the market-wide level. 25% 2% 15% 1% 5% % Thousands of Square Feet Job Growth & Unemployment (not seasonly adjusted) Unemployment 5/216 5/217 DFW 3.6% 3.8% Texas 2.2% 4.4% U.S. 4.5% 4.1% Job Growth Annual Change # of Jobs Added DFW 3.3% 115.8k Texas 2.2% 268.1k U.S. 1.6% 2,264k Class A Office Rents & 19% 18% 17% 16% 15% 14% Class A, B & C Office Absorption 4,5 4, 3,5 3, 2,5 2, 1,5 1, Class A Class A Rental Class A Class B Class C $3 $29 $28 $27 $26 $25 $24 $23 $22 $21 $2 2 - Research & Forecast Report Q2 217 Office Colliers International

19 - Downtown & Suburban Office Market Summary EXISTING PROPERTIES NET ABSORPTION CONSTRUCTION RENT Submarket Bldgs Inventory Direct Sublease Vacant Current Prior Qtr Current Qtr New Supply Under Construction Average (FS) DOWNTOWN AND SUBURBAN MARKETS Class A Suburban Suburban DFW Market 27 23,159, %.8% 5,932, % 26.% 145, ,634 92, ,4 $ ,984,611.5% 1.1% 8, % 14.6% 61,114 64,918 28,489 $ ,271, % 1.1% 17,921, % 15.5% 395,988 1,749,964 2,465,37 9,43,22 $ ,833, %.9% 814, % 13.4% (167,524) (4,772) 16,182 98,497 $ ,249,5 16.2% 1.% 25,482, % 17.1% 435,74 1,9,744 2,717,789 1,43,48 $28.99 Class B Suburban Suburban DFW Market 37 6,86, %.6% 1,22, % 16.8% (178,5) (72,14) $ ,968, %.3% 341, % 8.6% (2,45) 22,819 $ ,316 4,83, %.5% 17,881, % 14.2% 173,794 (156,599) 662, ,3 $ ,984, %.6% 2,315, % 16.9% 51,752 14,552 44,94 13,962 $21.5 2, ,239,2 14.2%.5% 21,787, % 14.5% 4,434 (186,77) 77,427 1,17,992 $21.5 Class C Suburban Suburban DFW Market 45 3,15,832 1.%.% 315,26 1.% 9.% (31,316) (29,38) $ ,554.2%.% 1,32.2%.6% 2,422 (1,32) $ ,528, %.1% 1,975, % 1.3% 44, , $ ,62, %.% 37, % 7.1% 18,792 73,669 $ ,93 27,947, %.% 2,599, % 9.4% 34,219 24,161 $18.6 All Classes Suburban Suburban DFW Market 19 32,396, %.6% 7,45,38 23.% 22.6% (63,945) 37,186 92, ,4 $ ,618, %.7% 1,155, % 11.5% 61,131 86,417 28,489 $ , ,883, %.7% 37,778, % 14.5% 614,13 1,754,485 3,7,857 1,317,52 $ ,419, %.6% 3,437, % 14.3% (96,98) 47,449 25,2 22,459 $21.7 4, ,435, %.7% 49,869, % 15.2% 59,727 1,93,198 3,425,216 11,61,4 $25.13 QUARTERLY AND ANNUAL HISTORICAL COMPARISONS 217 Q2 4, ,435, %.7% 49,869, % 15.2% 59,727 1,93,198 3,425,216 11,61,4 $ Q1 4, ,169, %.7% 49,162, % 15.1% 1,42,471 1,42,471 2,172,854 11,442,359 $ Q4 4,351 32,996, %.6% 48,41, % 15.% 421,7 3,642,71 5,178,27,641,798 $ Q3 4,335 32,1, %.6% 47,955, % 15.2% 2,69,891 3,221,64 4,32,63,449,883 $ Q2 4,31 318,546, %.6% 48,45, % 15.2% 777,46 1,151,173 2,727,562,685,317 $ Q2 4,242 3,315, %.7% 46,51, % 15.1% 1,85,468 3,969,435 3,882,221 7,515,716 $ Q2 4,17 36,613, %.7% 48,264, % 15.7% 88,647 2,672,628 1,954,586 6,76,22 $ Q2 4,3 33,192, %.7% 5,192, % 16.4% (43,232) 381, ,651 3,454,56 $ Q2 4,92 31,495, %.5% 5,699, % 16.8% 159,86 579, ,55 2,287,839 $ Research & Forecast Report Q2 217 Office Colliers International

20 - Office Submarket Summary EXISTING PROPERTIES NET ABSORPTION CONSTRUCTION RENT Colliers Markets Bldgs Inventory Direct Sublease Vacant Current Prior Qtr Current Qtr New Supply Under Construction Average (FS) Class A Central Expressway 22 7,54,442.9%.1% 917,72 13.%.7% (2,95) 32,436 $ ,159, %.8% 5,932, % 26.% 145, ,634 92, ,4 $ East 3 598, %.2% 38,94 6.4% 6.4% 294,82 $ 42.9 Far North ,26, % 1.3% 4,93,863.3% 13.4% 78,498 1,111,972 1,29,265 5,828,589 $ Fort Worth 17 5,984,611.5% 1.1% 8, % 14.6% 61,114 64,918 28,489 $ Las Colinas 81 19,66, % 2.% 2,956, % 14.1% (198,65) 722, ,183 8,219 $ LBJ 37 1,684, % 1.9% 2,637, % 24.4% (25,65) (13,77) $ Lewisville / Denton 6 474, %.%,62 2.7% 3.8% 5,243 $ Mid-Cities 42 8,233, %.2% 1,718, % 15.% (314,396) (337,33) 367, ,84 $ North 3 725, %.% 19,26 2.6% 2.6% 9 5,82 $ Northeast 2 414, %.% 39, % 61.3% (55,637) 28,86 $ Preston Center 22 4,188, %.7% 384, % 8.1% (44,641) (67,716) 171,583 $ North US 75 Corridor 66 14,116, %.3% 3,188, % 23.3% 96,363 (69,258) 473,441 $ South 23 3,692, % 1.2% 485, % 1.1% (111,896) (74,678) 16,182 98,497 $ 3.28 Southwest 3 352,67 3.9%.% 13, % 4.4% 1,836 1,836 $ Stemmons 14 4,797, %.2% 874, % 19.3% 11, ,198 63, $ Uptown / Turtle Creek 46 1,92,985 9.%.9% 1,88,248 1.% 1.8% 85, ,223 2, 1,273,53 $ 4.78 DFW Market ,249,5 16.2% 1.% 25,482, % 17.1% 435,74 1,9,744 2,717,789 1,43,48 $ Class B Central Expressway 85 5,962, %.4% 55, % 9.3% 47,599 (36,97) $ ,86, %.6% 1,22, % 16.8% (178,5) (72,14) $ East 178 6,555,785 8.%.1% 526,57 8.% 8.% (2,928) (91,822) $ Far North 44 21,28, %.6% 3,2,1 15.% 15.% 5,689 (21,878) 13, ,621 $ Fort Worth 42 3,968, %.3% 341, % 8.6% (2,45) 22,819 $ Las Colinas ,446, %.3% 2,691, % 13.2% 47,257 25, ,359 31,413 $ 2.88 LBJ 8 1,954, %.4% 2,195,871 2.% 2.3% 27,138 (27,479) $ Lewisville / Denton 195 8,14,63 8.7% 1.7% 831,51 1.4% 9.6% (53,924) (94,275) 29,4 8,66 $ Mid-Cities ,6, %.3% 2,51, % 14.2% 151,372 87,532 1, 145,649 $ 2.28 North 68 3,23, % 1.8% 214, % 6.9% 8,947 (19,571) 23,94 42, $ 24.8 Northeast 51 3,67, %.5% 1,488, % 47.3% (37,322) (15,31) $ Preston Center , %.3% 92, % 1.1% 5,673 2,669 $ North US 75 Corridor 374 2,169,675.8%.1% 2,69,581.9%.9% 5,18 72,192 18,34 324,439 $ 21.2 South 26 7,686, %.1% 6,71 8.% 9.% 8,7 49,154 21, 61,962 $ Southwest 88 2,995, %.% 352, %.5% 22,722 64,88 55, $ Stemmons 99 7,687, %.8% 2,43, % 26.1% (35,556) (41,568) $ Uptown / Turtle Creek 45 2,548, % 4.9% 378, % 11.1% (95,848) (9,757) 42,248 $ DFW Market 2, ,239,2 14.2%.5% 21,787, % 14.5% 4,434 (186,77) 77,427 1,17,992 $ Research & Forecast Report Q2 217 Office Colliers International

21 - Office Submarket Summary EXISTING PROPERTIES NET ABSORPTION CONSTRUCTION RENT Colliers Markets Bldgs Inventory Direct Sublease Vacant Current Prior Qtr Current Qtr New Supply Under Construction Average (FS) Class C Central Expressway ,66 4.3%.1% 4,52 4.4% 5.4% 9,53 24,44 $ ,15,832 1.%.% 315,26 1.% 9.% (31,316) (29,38) $ East 2,674, %.2% 234,46 8.8% 7.2% (42,94) (16,84) $ Far North 46 97, %.% 154, % 13.6% (31,19) (28,93) $ Fort Worth ,554.2%.% 1,32.2%.6% 2,422 (1,32) $ Las Colinas 22 1,28, %.% 75, % 8.2% 24,61 36,11 $ LBJ , %.% 161, % 24.8% (3,43) (3,42) $ Lewisville / Denton 73 1,647,37 3.1%.% 5, % 3.1% 584 1,427 $ Mid-Cities 26 4,842, %.% 563, %.4% 36,719 71,617 $ North ,54 2.1%.% 1, % 1.8% (1,474) 27,384 $ Northeast ,11 9.3%.% 91, % 9.% (2,85) (6,279) $ Preston Center , %.% 2, % 14.9% 35,734 53,18 $ North US 75 Corridor 14 2,475, %.% 17, % 5.8% (27,896) (27,731) $ 2.98 South 145 3,92, %.% 24, % 7.4% 23,116 52,564 $ Southwest 67 1,399,35 3.8%.% 52, % 3.7% (5) 4,792 $ Stemmons 62 1,946, %.% 49, % 23.3% 44,18 39,752 $ Uptown / Turtle Creek , % 1.% 42, % 8.6% (3,15) $ 3. DFW Market 1,93 27,947, %.% 2,599, % 9.4% 34,219 24,161 $ 18.6 All Classes Central Expressway ,933,62 1.3%.2% 1,463, % 1.8% 35,747 2,779 $ ,396, %.6% 7,45,38 23.% 22.6% (63,945) 37,186 92, ,4 $ East 31 9,828,957 8.%.1% 799,7 8.1% 7.7% (45,868) (18,626) 294,82 $ Far North 68 55,447,77.4% 1.% 7,448, % 14.% 683,78 1,62,1 1,393,959 6,15,21 $ 27.9 Fort Worth 8 1,618, %.7% 1,155, % 11.5% 61,131 86,417 28,489 $ Las Colinas ,261, % 1.1% 5,723, % 13.5% (6,747) 783,95 883, ,632 $ LBJ ,274,6 21.3% 1.1% 4,994, % 22.4% (1,87) (43,976) $ Lewisville / Denton 274 1,136, % 1.3% 894, % 8.3% (48,97) (83,848) 29,4 8,66 $ Mid-Cities ,688, %.2% 4,782, % 14.1% (6,35) (177,884) 377, ,489 $ North 99 4,474, % 1.3% 244,95 5.5% 5.6% 7,482 13,633 23,94 42, $ 22. Northeast 91 4,473, %.3% 1,89, % 4.1% (95,89) 6,776 $ 19.2 Preston Center 59 5,542, %.6% 497,433 9.% 8.9% (3,234) (11,867) 171,583 $ North US 75 Corridor ,762, %.2% 5,968, % 16.4% 118,485 (24,797) 18,34 797,88 $ South ,471, %.4% 1,32,218 9.% 8.9% (8,653) 27,4 181,182 16,459 $ 24.3 Southwest 158 4,747, %.% 418, % 9.3% 24,58 7,716 55, $ 18.1 Stemmons ,431, %.5% 3,326, % 23.5% 11,34 111,382 63, $ Uptown / Turtle Creek ,945,26 9.2% 1.7% 1,59,22 1.8% 1.8% (1,66) 161,316 2, 1,315,778 $ DFW Market 4, ,435, %.7% 49,869, % 15.2% 59,727 1,93,198 3,425,216 11,61,4 $ NOTE: Statistical set consists of office properties 1, and up, including owner-occupied properties; and excluding medical office and properties where the government is 1% owner and occupier. While CoStar attempts to provide the most accurate data at the end of every quarter, revisions are made throughout the year accounting for discrepancies in past reporting. Sources: CoStar Property, Colliers Research 5 - Research & Forecast Report Q2 217 Office Colliers International

22 Leasing Activity Leasing activity in Q2 217 was down 25% from the first half of 216. Leasing activity for Q2 was approximately 3.9 million square feet, while year-to-date activity is just over 8.3 million square feet. Q2 217 Top Office Lease Transactions BUILDING NAME/ADDRESS SUBMARKET TENANT LEASE DATE 21 Ross Ave 139,71 Baker Botts LLP Apr Ross Ave 115,492 Goldman Sachs Apr Freeport Pky Las Colinas 54,646 Yardi Systems Jun Waterview Pky US 75 Corridor 38,783 University of Texas at Apr Tennyson Pky Far North 35,738 BroadSoft, Inc. May International Pky Far North 33,653 Fisher Asset Jun N Glenville Dr US 75 Corridor 33,465 Service King Collision Repair Centers May N Stemmons Fwy Stemmons 3,73 Safeguard Business Systems May Legacy Dr Far North 25,343 NTT DATA, Inc. May Spectrum Dr Far North 23,427 Principal Financial Services, Inc. May W Las Colinas Blvd Las Colinas 22,542 Lightbeam Health Solutions May E Las Colinas Blvd Las Colinas 22,338 General Motors Financial Company Apr-17 4 International Pky Far North 18,398 Gallagher Apr Legacy Dr Far North 17,315 Spectrum VIOP May Canyon Dr Las Colinas 16,876 MAG Velocity May-17 Sales Activity Investment activity for the first half of 217 was up 74% from the first half of 216. Liberty Mutual s purchase of its Plano campus was one of the largest transactions of the quarter, estimated at around $325 million Legacy Circle in Far North traded near Uptown-level prices at $387 per square foot. Q2 217 Significant Sales Transactions (5, or greater) BUILDING NAME SUBMARKET RBA () CLASS BUYER SELLER DATE SOLD 5851 Legacy Circle Upper Tollway/ West Plano 318,582 A TIER REIT, Inc. VEREIT, Inc. 6/26/17 Northpark Central Central Expressway 491,82 A CBRE Global Investors Cornerstone RE Advisers 6/21/17 Point West I DFW Freeport/Coppell 182,7 B Capital Commercial Investments Gramercy Property Trust 5/31/17 Midtown Office Center East LBJ 8,789 B Olymbec USA Libitzky Property Companies 5/26/ N Greenville Avenue Richardson 19, B Intercontinental Real Estate Corporation Foundry Commercial, CenterSquare 5/25/17 Arbors at Brookhollow Arlington/Mansfield 114,421 B Yacht Harbor Capital Advisors Onward Investors LLC 5/19/17 Pacific Center I & II Quorum/Bent Tree 224,222 A Apex Pacific Partners The Douglas Preston Center 163,864 B Granite Properties KBS Real Estate Investment Trust Transwestern Investment Company 5/18/17 5/2/17 Granite Plaza Office Ctr/West LBJ Extension 195,173 A American Fidelity Property Company Granite Properties 4/27/17 Forest Green Business Park East LBJ 172,62 B Pat Davis Properties Prescott Realty Group 4/3/17 Sources: RCA, Costar, Colliers Research 6 - Research & Forecast Report Q2 217 Office Colliers International

23 Quoted gross rental rates for existing top performing office buildings BUILDING NAME ADDRESS SUBMARKET RBA () +E BUILDINGS YEAR BUILT % LEASED AVAIL. RENT ($/) OWNER KPMG Plaza at Hall Arts 2323 Ross Ave 459, % 113,415 $48. +E 2323 Ross Holdings, LLC 1919 McKinney Ave 1919 McKinney Ave Uptown/Turtle Creek 118, % 4,788 $38. +E Ecom Real Estate Mgmt, Inc. 83 Douglas at Preston Center 83 Douglas Ave Preston Center 1, % 63,492 $35.5 +E Lionstone Investments Chase Tower 22 Ross Ave 1,255, % 344,474 $35. +E Fortis Property Group, LLC Travis Walk 4514 Travis St Preston Center 91, % 17,73 $35. +E Intercity Investment Properties, Inc. 31 Monticello 31 Monticello Ave Preston Center 174, % 33,194 $35. +E NNN BUILDINGS Westdale Real Estate Investment and Management 21 McKinney Ave 21 McKinney Ave Uptown/Turtle Creek 36, % 16,161 $4. NNN NY State Common Retirement Fund 17Seventeen McKinney 1717 McKinney Ave Uptown/Turtle Creek 369, % 41,86 $39. NNN Gaedeke Group LLC The Star 1 Cowboys Way Far North 397, % 81,585 $39. NNN City of Frisco 2 McKinney Ave 2 McKinney Ave Uptown/Turtle Creek 447, % 2,83 $38.5 NNN Union Investment Real Estate GmbH McKinney & Olive 221 McKinney Ave Uptown/Turtle Creek 53, % 35,88 $38.5 NNN Crescent Real Estate Equities LLC Harwood No. 7 Frost Tower 295 N Harwood St Uptown/Turtle Creek 167, % 9,72 $38. NNN Harwood International Q2 217 HIGHLIGHTS TOTAL OFFICE INVENTORY 148.2M 324.4M 148.2M 27.9M TOTAL INVENTORY BY CLASS CLASS A: 46% CLASS B: 46% CLASS C: 8% TOTAL: 11.5M SUBMARKET FAR NORTH DALLAS UPTOWN/TURTLE CREEK LAS COLINAS NORTH US-75 CORRIDOR MID-CITIES 6.M 1.3M 843K 798K 694K UNDER CONSTRUCTION.8% ANNUALLY CURRENT 15.4% 59,727 NET ABSORPTION MULTI-TENANT OFFICE BUILDINGS BY SIZE 25K-5K 5K-1K 1K-25K 25K-5K 5K-1M 1 MILLION+ NUMBER OF BUILDINGS TOTAL SQUARE FEET M 14.3% M 21.2% M 19.7% M 21.% M 22.8% M 23.9% 7 - Research & Forecast Report Q2 217 Office Colliers International

24 38 OFFICE SUBMARKET MAP LLT NORTHWEST FORT WORTH SOUTHWEST FORT WORTH ALLIANCE / FOSSIL CREEK 14 35W 35W FW 5 35W B W WEST LAKE / GRAPEVINE NORTHEAST FORT WORTH SOUTHEAST FORT WORTH DENTON HURST / EULESS / BEDFORD ARLINGTON 287B LLT 35E LEWISVILLE DFW / FREEPORT COPPELL OFFICE CTR WEST LBJ EXT SOUTH IRVING 48 GRAND PRAIRIE URBAN CENTER WINGREN 33 FRISCO THE COLONY E DNT DNT UPPER TOLLWAY PLANO QUORUM BENT TREE DNT WEST LBJ 4 PRESTON CENTER STEMMONS FREEWAY 16 SOUTHWEST DALLAS 7 DNT UPTOWN / TURTLE CREEK DALLAS 35E EAST LBJ PLANO 19 RICHARDSON CENTRAL EXPWY WHITE ROCK 635 ALLEN / McKINNEY MESQUITE FORNEY TERRELL GARLAND ROCKWALL SOUTHEAST DALLAS Central Expressway 1 North 154 Bldgs 13.9m 1.5% Vac UC = None $ P 99 Bldgs 4.5m 5.5% Vac UC = 42K $ 22. P 2 11 Northeast 19 Bldgs 32.4m 23% Vac UC = 261.4K $ P 91 Bldgs 4.5m 42.3% Vac UC = None $ 19.2 P 3 East Preston Center 31 Bldgs 9.8m 8.1% Vac UC = 294.8K $ P 59 Bldgs 5.5m 9% Vac UC = 171.6K $ P 4 Far North 13 North US 75 Corridor 68 Bldgs 55.4m 13.4% Vac UC = 6,15K $ 27.9 P 544 Bldgs 36.8m 16.2% Vac UC = 798K $ P 5 14 South 8 Bldgs 1.6m 1.9% Vac UC = 28.5K $ P 374 Bldgs 14.5m 9% Vac UC = 16.5K $ 24.3 P 6 Las Colinas 15 Southwest 335 Bldgs 39.3m 14.6% Vac UC = 843.6K $ P 158 Bldgs 4.7m 8.8% Vac UC = 55K $ 18.1 P 7 LBJ 16 Stemmons 196 Bldgs 22.3m 22.4% Vac UC = None $ P 175 Bldgs 14.4m 23.1% Vac UC = None $ P 8 Denton / Lewisville 17 Uptown / Turtle Creek 274 Bldgs 1.1m 8.8% Vac UC = 8.7K $ P 113 Bldgs 13.9m 1.8% Vac UC = 1,316K $ P 9 Mid-Cities Market 716 Bldgs 31.7m 15.1% Vac UC = 694.5K $ P 4,386 Bldgs 324.4m 15.4% Vac UC = 11,61K $ P RESEARCHERS: MIKE OTILLIO Director of Research DIRECT mike.otillio@colliers.com KARI BEETS Research Associate DIRECT kari.beets@colliers.com Copyright Colliers International. The information contained herein has been obtained from sources deemed reliable. While every While every reasonable reasonable effort has effort been has made been to made ensure to ensure its accuracy, its accuracy, we cannot we cannot guarantee guarantee it. No responsibility it. No responsibility is assumed is assumed for any for inaccuracies. any inaccuracies. Readers Readers are encouraged are encouraged to consult to consult their professional their professional advisors advisors prior prior to acting to acting on any on of any the of material the material contained contained this in report. this report. Colliers International Market 1717 Address, McKinney Suite Avenue, # Suite 9, Address, Texas 7522 Suite # colliers.com/<<market>> colliers.com/texas/dallas 8 North American Research & Forecast Report Q4 214 Office Market Outlook Colliers International

25 Research & Forecast Report DALLAS-FORT WORTH OFFICE Q1 217 Solid start clouded by rising construction costs Mike Otillio Director of Research Kari Beets Research Associate 217 promises to be a big year for - Real Estate or more specifically Plano real estate. If everything remains on schedule, the long-anticipated Legacy West development will welcome Toyota s North American Headquarters, JP Morgan Chase, and Liberty Mutual by the end of the year. More companies such as Ryan, LLC and Boeing have also announced moves to the area. The northern suburbs are not the only area with development news. At the beginning of the year, AT&T announced plans to invest $1 million into their campus headquarters, efforts that could help rejuvenate the southern part of downtown, where average rates lag the Arts District north of San Jacinto by more than $1/psf. Although not expected to be completed until 219, the project could encourage other downtown owners to reinvest in anticipation. Rising construction costs continue to be a concern for the DFW market, as well as in other markets across the country. TI dollars are increasing as landlords try to lessen the shock to tenants from the dramatic increase in build-out costs. Increases in construction costs (and land costs in hot markets) may also have put the breaks on some speculative office developments, as investors are finding that the pro forma rates needed to achieve their target returns are not feasible. This has not stopped investors from announcing potential opportunities for whale tenants circling the market to anchor a major new development Hillwood, KDC, Rosewood, Bright Realty, and more have proposed projects in need of a large tenant to kick off. A Look Ahead > Construction costs will continue to rise as there is no end in sight for the labor shortage. Increasing construction costs will continue to push rates for new product higher. DFW continues to be a relative bargain compared to gateway cities, and the upward push in overall rates is likely to level off by the end of 217. > will rise slightly in the next few quarters as DFW delivers new spec construction and as tenants move into Legacy West and consolidate from locations across the metroplex. Continued interest from companies looking to relocate in DFW will mitigate the rise. Market Indicators Relative to prior period orption Under Construction Rental *Projected Summary Statistics DFW Office Market DFW Market DFW Class A DFW Class B 15.4% 17.2% 14.8% Change from prior Quarter.2%.1%.4% Absorption (Thousand Square Feet) New Supply (Thousand Square Feet) Under Construction (Thousand Square Feet) Asking Rents Per Square Foot Per Year Annual Change Quarterly Change 1,224 1, ,295 2, ,542 1, Quarterly Forecast* Average $24.88 $28.74 $2.83 Change from prior Quarter 1.8% 1.4% 2.% Year-Over-Year Change 4.4% 3.6% 5.4%

26 Market Highlights > DFW added 5, jobs, an increase of 3.6% from February 216 to 217, while Texas grew at 1.9% and the U.S. grew at 1.7% over the same period. The DFW unemployment rate has ticked up slightly, increasing.6% year-over-year to 4.3%, but remains below the national average of 4.9%. > Speculative construction continues to be about half of all properties under construction. Properties delivered in Q1 217 that were not build-to-suits were 34.5% pre-leased as of the end of the quarter, down significantly from 73.7% pre-leased for those delivered in Q Construction starts held steady in Q1 217, with 16 properties totaling 9, square feet breaking ground. rose slightly from 15.2% in Q4 216 to 15.4% in Q The vacancy rate has held relatively steady throughout 216 and into the first quarter of 217. Class A vacancy increased.1% to 17.2%, and Class B vacancy increased.4% to 14.8%. South saw the greatest increase in Class A vacancy from Q4 216 to Q1 217, with vacancy jumping 3% to 1.1% when it delivered two buildings in the speculative Clearfork development. in Las Colinas improved by 1.2%, reaching 13.5% overall, due to McKesson s move-in to 527, square feet at the Apex at Las Colinas Crossing. vacancy increased by.4%, while Uptown/Turtle Creek vacancy remained flat at 1.7%. New Supply, Absorption & Thousand of Square Feet 7,5 5, 2,5 New Supply Absorption 25% 2% 15% 1% 5% Job Growth & Unemployment (not seasonly adjusted) Unemployment 2/216 2/217 DFW 3.7% 4.3% Texas 4.4% 5.1% U.S. 5.2% 4.9% Job Growth Annual Change # of Jobs Added DFW 3.6% 4.5k Texas 1.9% 226.2k U.S. 1.7% 2,36k Class A Office Rents & 19% 18% 17% 16% $29 $28 $27 $26 $25 $24 $23 Rental s Overall rental rates continued to set new records in Q1 217, rising $.44 from Q4 216 to $24.88 for gross asking rents. For Class A, rental rates increased 1.4% to $28.74, and Class B rates rose 2% to $2.83 overall. Class A gross asking rental rates in Uptown/Turtle Creek were flat from the prior quarter at $4.47. After topping $4 in Q3 216, rates have held steady, decreasing only.% from that quarter, signaling that rates might have reached their peak. The LBJ submarket saw a significant increase in rental rates both for Class A, which increased 1.8% to $25.82, and Class B, which increased 5.2% to $ While the market still has significant vacancy, the increase in asking rates shows the market is affected by rental rate lift in adjacent markets such as Central Expressway and Preston Center. Absorption & Demand Net absorption for Q1 217 was 1.2 million square feet, almost three times the amount of net absorption that was recorded in Q Anticipated major move-ins will likely cause 217 s absorption level to exceed 216 s significantly. Las Colinas led the market, absorbing over 92, square feet in Q1 217, including Corelogic occupying its 327, square foot headquarters. Far North absorbed 485, square feet, with the largest impacts from Capital One s move into their seventh building in Plano and Legacy West s first tenants moving into 161, square feet. The North US 75 corridor saw the highest level of negative absorption at 14, square feet, the largest move-out being Frontier Communication s vacating 138, square feet at The Tower at Lakeside Campus. % 15% $22 $21 14% $ Class A Class A Rental Thousands of Square Feet Class A, B & C Office Absorption 4,5 4, 3,5 3, 2,5 2, 1,5 1, Class A Class B Class C 2 - Research & Forecast Report Q1 217 Office Colliers International

27 - Downtown & Suburban Office Market Summary EXISTING PROPERTIES NET ABSORPTION CONSTRUCTION RENT Submarket Bldgs Inventory Direct Sublease Vacant Current Prior Qtr Current Qtr New Supply Under Construction Average (FS) DOWNTOWN AND SUBURBAN MARKETS Class A Suburban Suburban DFW Market 26 23,67, % 1.1% 6,15, % 26.% (24,257) (24,257) 353,637 $ ,984, %.4% 87, % 14.6% 3,84 3,84 28,489 $ ,131, % 1.% 17,695, % 15.5% 1,381,169 1,381,169 1,937,37 9,99,643 $ ,828,668.5%.9% 647, % 13.1% 6,752 6,752 16,182 $ ,, % 1.% 25,228, % 17.1% 1,487,468 1,487,468 2,97,552 1,543,769 $28.74 Class B Suburban Suburban DFW Market 37 6,86, %.6% 1,236,42 2.3% 18.6% (16,241) (16,241) $ ,96, %.3% 339, % 9.2% 25,224 25,224 $ ,297 4,58,78 14.%.5% 18,59, % 14.1% (35,175) (35,175) 152,652 95,871 $ ,942, %.9% 2,343,5 16.8% 16.3% (37,6) (37,6) 44,94 47,325 $2.79 2, ,569, %.5% 21,978, % 14.4% (423,792) (423,792) 197, ,196 $2.83 Class C Suburban Suburban DFW Market 45 3,15,832 9.%.% 283,71 9.% 9.1% 2,8 2,8 $ ,554.6%.% 3,742.6%.% (3,742) (3,742) $ ,431, %.% 1,996, % 1.8% 17,46 17,46 $ ,599,281 7.%.% 32,79 7.% 8.2% 54,877 54,877 $ ,93 27,857, %.% 2,64,68 9.4% 9.9% 16,189 16,189 $17.96 All Classes Suburban Suburban DFW Market 18 32,34, %.9% 7,535, % 22.9% (8,49) (8,49) 353,637 $ ,62, %.3% 1,213, % 11.7% 25,286 25,286 28,489 $25.6 3,67 257,143, %.7% 37,75, % 14.5% 1,183,4 1,183,4 2,9,22 1,86,514 $ ,37, %.7% 3,311, % 14.% 144,29 144,29 25,2 47,325 $ , ,439, %.7% 49,811, % 15.2% 1,223,865 1,223,865 2,295,144 11,541,965 $24.88 QUARTERLY AND ANNUAL HISTORICAL COMPARISONS 217 Q1 4, ,439, %.7% 49,811, % 15.2% 1,223,865 1,223,865 2,295,144 11,541,965 $ Q4 4,34 321,279, %.6% 48,875, % 15.1% 416,732 3,152,6 5,36,371,937,242 $ Q3 4,324 32,45, %.6% 48,418, % 15.4% 2,11,414 2,735,88 4,297,689,772,282 $ Q2 4, ,83, %.6% 48,945, % 15.2% 26, ,466 2,722,949,792,88 $ Q1 4, ,819, %.6% 48,193, % 14.8% 374, ,311 1,711,624 1,46,68 $ Q1 4, ,779, %.7% 47,133, % 15.% 2,5,67 2,5,67 3,22,545 6,373,151 $ Q1 4,147 35,715,13 15.%.7% 47,92,4 15.7% 16.% 1,53,372 1,53,372 41,88 7,615,548 $ Q1 4,18 33,5, %.6% 49,787, % 16.4% 399, , ,3 2,621,721 $ Q1 4,78 31,55, %.5% 5,59, % 16.8% 49,37 49,37 29,727 1,859,634 $ Research & Forecast Report Q1 217 Office Colliers International

28 - Office Submarket Summary EXISTING PROPERTIES NET ABSORPTION CONSTRUCTION RENT Colliers Markets Bldgs Inventory Direct Sublease Vacant Current Prior Qtr Current Qtr New Supply Under Construction Average (FS) Class A Central Expressway 22 7,54,442.6%.1% 896,167.7% 13.5% 53,341 53,341 $ ,67, % 1.1% 6,15, % 26.% (24,257) (24,257) 353,637 $ East 2 14,46 9.1% 1.% 14, % 1.1% 291,457 $ NA Far North ,668, % 1.4% 4,336, %.4% 59,36 59,36 89,265 6,27,597 $ Fort Worth 17 5,984, %.4% 87, % 14.6% 3,84 3,84 28,489 $ Las Colinas 81 19,611,44.7% 1.3% 2,746, % 16.4% 932, , , ,219 $ LBJ 37 1,681,7 23.4% 1.4% 2,654, % 25.%,528,528 $ Lewisville / Denton 6 474, %.% 17, % 6.7% (5,243) (5,243) $ Mid-Cities 41 8,33, % 1.3% 1,23,76 15.%.9% (22,637) (22,637) 167, ,84 $ North 3 725, %.% 19, %.% 5,811 5,811 $ Northeast 2 414, %.% 254, % 81.8% 83,723 83,723 $ Preston Center 22 4,188, %.6% 339, % 7.6% (23,75) (23,75) 171,583 $ North US 75 Corridor 66 14,464, %.5% 3,277, % 21.5% (165,621) (165,621) 469,417 $ South 23 3,688,98 8.9% 1.2% 373, % 7.1% 37,218 37,218 16,182 $ 3.17 Southwest 3 352,67 4.4%.% 15,5 4.4% 4.4% $ Stemmons 13 4,573, %.2% 1,3, % 2.6% (88,68) (88,68) 63, $ Uptown / Turtle Creek 45 1,887, %.6% 1,162, % 1.7% 178, ,814 2, 1,273,53 $ 4.47 DFW Market ,, % 1.% 25,228, % 17.1% 1,487,468 1,487,468 2,97,552 1,543,769 $ Class B Central Expressway 86 5,983, %.5% 553, % 7.8% (83,696) (83,696) $ ,86, %.6% 1,236,42 2.3% 18.6% (16,241) (16,241) $ East 18 6,994, %.1% 98, %.6% (96,744) (96,744) $ Far North ,2, %.6% 3,181, 15.% 14.6% (26,54) (26,54) 71, ,348 $ Fort Worth 42 3,96, %.3% 339, % 9.2% 25,224 25,224 $ Las Colinas ,249,762.9%.4% 2,43, % 13.2% (21,7) (21,7) 359,359 $ 21. LBJ 8 1,957, %.6% 2,223,9 2.3% 19.8% (54,617) (54,617) $ Lewisville / Denton 193 7,987,85 8.% 1.% 722, % 8.5% (28,778) (28,778) 18, ,264 $ Mid-Cities ,64, %.3% 2,64, % 13.5% (58,792) (58,792) 88, $ 2.23 North 68 3,23,9 5.% 1.9% 223, % 5.3% (28,518) (28,518) 23,94 1, $ 23.2 Northeast 5 3,56, %.8% 1,445, % 48.% 22,291 22,291 $ 18.7 Preston Center , %.3% 97, % 9.8% (3,4) (3,4) $ 3.45 North US 75 Corridor ,989,868.7%.2% 2,57,58.9%.7% 24,783 24,783 62,67 244,9 $ 21.2 South 25 7,656, %.5% 673, % 8.1% (31,373) (31,373) 21, 37,325 $ Southwest 88 2,997,39.5%.% 374,948.5% 13.9% 41,366 41,366 $ Stemmons 99 7,658, % 1.% 2,7, % 26.1% (6,) (6,) $ Uptown / Turtle Creek 44 2,523, %.7% 276, % 11.3% 8,523 8,523 $ DFW Market 2, ,569, %.5% 21,978, % 14.4% (423,792) (423,792) 197, ,196 $ Research & Forecast Report Q1 217 Office Colliers International

29 - Office Submarket Summary EXISTING PROPERTIES NET ABSORPTION CONSTRUCTION RENT Colliers Markets Bldgs Inventory Direct Sublease Vacant Current Prior Qtr Current Qtr New Supply Under Construction Average (FS) Class C Central Expressway ,14 5.2%.2% 49, % 7.% 15,387 15,387 $ ,15,832 9.%.% 283,71 9.% 9.1% 2,8 2,8 $ East 2,674, %.% 191, % 8.1% 26,136 26,136 $ 15. Far North , %.% 111, % 13.4% 2,455 2,455 $ Fort Worth ,554.6%.% 3,742.6%.% (3,742) (3,742) $ Las Colinas 22 1,28, %.% 99, % 9.2%,49,49 $ LBJ 3 625, %.% 15, % 24.1% (17) (17) $ Lewisville / Denton 73 1,647, %.% 51, % 3.7% 9,843 9,843 $ 17.2 Mid-Cities 27 4,82,393.4%.% 6,53.4% 13.2% 34,898 34,898 $ North ,54 1.8%.% 9, % 7.4% 28,858 28,858 $ Northeast ,11 9.%.% 89,94 9.% 8.6% (3,429) (3,429) $ Preston Center , %.% 56, % 19.4% 17,446 17,446 $ North US 75 Corridor 14 2,46, %.% 142, % 5.8% $ 2.31 South 144 3,89,64 7.2%.% 222, % 8.1% 29,448 29,448 $ Southwest 66 1,38,91 3.8%.% 52, % 4.2% 5,292 5,292 $ 18.5 Stemmons 62 1,951, %.% 442, % 22.1% (1,26) (1,26) $ Uptown / Turtle Creek 23 53, % 1.4% 48, % 8.3% (6,582) (6,582) $ 3.27 DFW Market 1,93 27,857, %.% 2,64,68 9.4% 9.9% 16,189 16,189 $ All Classes Central Expressway ,963,88 1.4%.3% 1,498,98 1.7% 1.6% (14,968) (14,968) $ ,34, %.9% 7,535, % 22.9% (8,49) (8,49) 353,637 $ East 32 9,89,194.%.1% 1,186,368.1% 11.4% (7,68) (7,68) 291,457 $ Far North ,721,766.9% 1.% 7,629, % 13.3% 485, , ,599 6,49,945 $ Fort Worth 81 1,62, %.3% 1,213, % 11.7% 25,286 25,286 28,489 $ 25.6 Las Colinas ,69,365.7%.9% 5,276, % 14.7% 922, , ,183 98,578 $ 24.5 LBJ ,264, % 1.% 5,28, % 22.4% (42,16) (42,16) $ 22.2 Lewisville / Denton 272 1,19,851 7.%.8% 792,1 7.8% 7.4% (24,178) (24,178) 18, ,264 $ Mid-Cities 7 31,918, %.5% 4,444, % 13.3% (46,531) (46,531) 167, ,84 $ North 99 4,474,38 4.3% 1.4% 252, % 5.3% 6,151 6,151 23,94 1, $ 21.6 Northeast 9 4,462, %.6% 1,789, % 42.4%,585,585 $ Preston Center 59 5,542, %.5% 494, % 8.8% (8,633) (8,633) 171,583 $ North US 75 Corridor ,915, %.3% 5,99, % 15.7% (14,673) (14,673) 62,67 714,317 $ South ,433, %.6% 1,269,87 8.8% 7.9% 35,293 35, ,182 37,325 $ 24. Southwest 157 4,73, %.% 442, % 1.3% 46,658 46,658 $ Stemmons ,183,31 24.%.6% 3,48,7 24.5% 23.8% (14,718) (14,718) 63, $ Uptown / Turtle Creek 1 13,914,346 1.%.7% 1,487, % 1.7% 18,755 18,755 2, 1,273,53 $ DFW Market 4, ,439, %.7% 49,811, % 15.2% 1,223,865 1,223,865 2,295,144 11,541,965 $ NOTE: Statistical set consists of office properties 1, and up, including owner-occupied properties; and excluding medical office and properties where the government is 1% owner and occupier. While CoStar attempts to provide the most accurate data at the end of every quarter, revisions are made throughout the year accounting for discrepancies in past reporting. Sources: CoStar Property, Colliers Research 5 - Research & Forecast Report Q1 217 Office Colliers International

30 Leasing Activity Leasing Activity for Q1 217 totaled approximately 3.3 million square feet, which is behind the quarterly average in 216. Average deal size continued to hover around 4, square feet. Q1 217 Top Office Lease Transactions BUILDING NAME/ADDRESS SUBMARKET TENANT LEASE DATE 3 Olympus Blvd Las Colinas 216,4 Brinker International Feb Legacy Dr Far North 6,715 NTT DATA, Inc. Jan Noel Rd LBJ 88,84 Amazon Mar N Field St Uptown/Turtle Creek 68, Akin Gump Strauss Hauer & Feld LLP Mar N Glenville Dr US 75 Corridor 64,916 Service King Collision Repair Centers Jan-17 3 N Redbud Blvd US 75 Corridor 52,611 Southwest Airlines Mar Legacy Dr Far North 36, Wipro Technologies Jan Riverside Las Colinas 35,962 Nielson Feb Fuller Dr Las Colinas 35,164 GSA Feb Democracy Dr Far North 32,74 Toyota Jan Tennyson Pky Far North 31,243 Macquarie Infrastructure Corporation Jan Noel Rd LBJ 3,53 AECOM Mar N Pky Far North 28,233 Creston Electronics Jan Main St 25,92 HighGround Advisors Mar Woodland Park Blvd Mid Cities 25,599 Henry Schein, Inc. Feb-17 Sales Activity As is common in the first quarter, investment activity was down significantly in Q1 217 from the last few quarters of 216, but up 14.6% year-over-year. The LBJ submarket saw three sales of properties over 1, square feet, and Uptown/Turtle Creek had two large office transactions. Q1 217 Significant Sales Transactions (5, or greater) BUILDING NAME SUBMARKET RBA () YEAR BUILT BUYER SELLER DATE SOLD 2525 McKinnon Uptown/Turtle Creek 111, City Office REIT, Inc. Talon Private Capital 1/11/217 Parkside Tower Uptown/Turtle Creek 378, Lincoln Property Company Building & Land Technology 3/1/217 Western Place I & II South Ft Worth 425,4 1978,1981 TCRG Properties, LLC. TLC Urban 2/1/217 Centreport Grand Prairie 6, University Centre* Richardson 59, Capital Commercial Investments, Inc. Symphony Gateway LLC and CIG Retail Properties AT&T, Inc. 2/22/217 Pat Davis Properties 3/3/ W John Carpenter Las Colinas 7, Exeter Property Group CBRE Global Investors 3/24/217 Banner Place North and South* LBJ 258, JP Realty Partners Gaedeke Group LLC 3/7/217 Meadow Central* Central Expressway 16, Ascent Real Estate Advisors Sunwest Real Estate Group 3/2/217 Old Raytheon Campus East 449, Langford Property Co. IRC Retail Centers 2/15/217 Sources: RCA, Costar, Colliers Research *Colliers transaction 6 - Research & Forecast Report Q1 217 Office Colliers International

31 Quoted gross rental rates for existing top performing office buildings BUILDING NAME ADDRESS SUBMARKET RBA () +E BUILDINGS YEAR BUILT % LEASED AVAIL. RENT ($/) OWNER KPMG Plaza at Hall Arts 2323 Ross Ave 459, % 4,93 $48. +E 2323 Ross Holdings, LLC 1919 McKinney 1919 McKinney Ave Uptown/Turtle Creek 118, % 72,174 $38. +E Ecom Real Estate Mgmt, Inc. 83 Douglas at Preston Ctr. 83 Douglas Ave Preston Center 1, % 62,338 $35.5 +E Lionstone Investments Chase Tower 22 Ross Ave 1,255, % 317,946 $35. +E Fortis Property Group, LLC 31 Monticello 31 Monticello Ave Preston Center 174, % 35,772 $ E Westdale Real Estate The Urban Towers 222 W Las Colinas Blvd Las Colinas 848, % 249,635 $34.5 +E Parallel Capital Partners, Inc. NNN BUILDINGS 21 McKinney 21 McKinney Ave Uptown/Turtle Creek 36, % 33,296 $4. NNN New York State Common Retirement Fund The Star 1 Cowboys Way Far North 397, %,146 $39. NNN City of Frisco McKinney & Olive 221 McKinney Ave Uptown/Turtle Creek 53, % 35,88 $38.5 NNN Crescent Real Estate Equities LLC Harwood No N Harwood St Uptown/Turtle Creek 22, % 25,134 $35. NNN Harwood International Saint Ann Court 251 N Harwood St Uptown/Turtle Creek 314, % 25,973 $34. NNN Harwood International Harwood No N Harwood St Uptown/Turtle Creek 29, % 15,72 $33.75 NNN Harwood International Q1 217 HIGHLIGHTS TOTAL OFFICE INVENTORY 147.M 323.4M 148.6M 27.9M TOTAL INVENTORY BY CLASS CLASS A: 45% CLASS B: 46% CLASS C: 9% TOTAL: 11.5M SUBMARKET FAR NORTH DALLAS LAS COLINAS UPTOWN/TURTLE CREEK MID-CITIES NORTH US-75 CORRIDOR 6.4M 981K 1.3M 837K 714K UNDER CONSTRUCTION 1.9% ANNUALLY CURRENT 15.4% 1.2M NET ABSORPTION MULTI-TENANT OFFICE BUILDINGS BY SIZE 25K-5K 5K-1K 1K-25K 25K-5K 5K-1M 1 MILLION+ NUMBER OF BUILDINGS TOTAL SQUARE FEET M 15.1% M 2.8% M 19.6% M 21.7% M 22.2% M 23.9% 7 - Research & Forecast Report Q1 217 Office Colliers International

32 38 OFFICE SUBMARKET MAP LLT NORTHWEST FORT WORTH SOUTHWEST FORT WORTH ALLIANCE / FOSSIL CREEK 14 35W 35W FW 5 35W B W WEST LAKE / GRAPEVINE NORTHEAST FORT WORTH SOUTHEAST FORT WORTH DENTON HURST / EULESS / BEDFORD ARLINGTON 287B LLT 35E LEWISVILLE DFW / FREEPORT COPPELL OFFICE CTR WEST LBJ EXT SOUTH IRVING 48 GRAND PRAIRIE URBAN CENTER WINGREN 33 FRISCO THE COLONY E DNT DNT UPPER TOLLWAY PLANO QUORUM BENT TREE DNT WEST LBJ 4 PRESTON CENTER STEMMONS FREEWAY 16 SOUTHWEST DALLAS 7 DNT UPTOWN / TURTLE CREEK DALLAS 35E EAST LBJ PLANO 19 RICHARDSON CENTRAL EXPWY WHITE ROCK 635 ALLEN / McKINNEY MESQUITE FORNEY TERRELL GARLAND ROCKWALL SOUTHEAST DALLAS Central Expressway 1 North 156 Bldgs 14m 1.7% Vac UC = None $ P 99 Bldgs 4.5m 5.6% Vac UC = 1K $ 21.6 P 2 11 Northeast 18 Bldgs 32.3m 23.3% Vac UC = 353.6K $ P 9 Bldgs 4.5m 4.1% Vac UC = None $ P 3 East Preston Center 32 Bldgs 9.8m.1% Vac UC = 291.5K $ P 59 Bldgs 5.5m 8.9% Vac UC = 171.6K $ P 4 Far North 13 North US 75 Corridor 598 Bldgs 54.7m 13.9% Vac UC = 6,41K $ P 535 Bldgs 36.9m 16.2% Vac UC = 714K $ P 5 14 South 81 Bldgs 1.6m 11.4% Vac UC = 28.5K $ 25.6 P 372 Bldgs 14.4m 8.8% Vac UC = 37.3K $ 24. P 6 Las Colinas 15 Southwest 335 Bldgs 39.1m 13.5% Vac UC = 98.6K $ 24.5 P 157 Bldgs 4.7m 9.4% Vac UC = None $ P 7 LBJ 16 Stemmons 195 Bldgs 22.3m 22.6% Vac UC = None $ 22.2 P 174 Bldgs 14.2m 24.5% Vac UC = 63K $ P 8 Denton / Lewisville 17 Uptown / Turtle Creek 272 Bldgs 1.1m 7.8% Vac UC = 119.3K $ P 1 Bldgs 13.9m 1.7% Vac UC = 1,274K $ P 9 Mid-Cities Market 7 Bldgs 31.9m 13.9% Vac UC = 836.8K $ P 4,357 Bldgs 323.4m 15.4% Vac UC = 11,542K $ P RESEARCHERS: MIKE OTILLIO Director of Research DIRECT mike.otillio@colliers.com KARI BEETS Research Associate DIRECT kari.beets@colliers.com Copyright Colliers International. The information contained herein has been obtained from sources deemed reliable. While every While every reasonable reasonable effort has effort been has made been to made ensure to ensure its accuracy, its accuracy, we cannot we cannot guarantee guarantee it. No responsibility it. No responsibility is assumed is assumed for any for inaccuracies. any inaccuracies. Readers Readers are encouraged are encouraged to consult to consult their professional their professional advisors advisors prior prior to acting to acting on any on of any the of material the material contained contained this in report. this report. Colliers International Market 1717 Address, McKinney Suite Avenue, # Suite 9, Address, Texas 7522 Suite # colliers.com/<<market>> colliers.com/texas/dallas 8 North American Research & Forecast Report Q4 214 Office Market Outlook Colliers International

33 Research & Forecast Report DALLAS-FORT WORTH OFFICE Q4 216 Sales surge, rates rise, but absorption eases to close 216 Mike Otillio Director of Market Research Kari Beets Research Associate The fourth quarter of 216 wrapped up a strong year for the - real estate market in terms of office sale activity, but moderate in terms of leasing. After seeing over 6.4 million square feet of absorption in 215, the highest in almost a decade - absorption slowed considerably in 216, totaling just over 3 million square feet less than half of the prior two years. (Gross absorption, the measure of total square feet leased and occupied not accounting for space vacated in the same market was higher than the prior year, indicating more space was vacated even though activity was strong.) Two factors may account for this: fewer deals coming from outside the DFW market and consolidation of tenants already present. Consolidation has been a theme as major companies move dispersed locations into newer offices and firms modernize their space, reducing the square footage per employee. The year saw record prices for office sales. Sale prices in the Uptown submarket for 17Seventeen McKinney and 2 McKinney both topped $5/sf the highest seen for urban Class A office, and Legacy Tower fetched $4/sf the highest ever for suburban office. 216 was also the year of the sale-leaseback with State Farm completing the sale-leaseback of its CityLine operations center for $822 million, JCPenney selling its Legacy West headquarters for $353 million, and Verizon selling its regional headquarters for $344 million. With record-high sale prices, companies, such as Raytheon whose CityLine campus recently went on the market, are seeking to cash-in their valuable real estate assets. A Look Ahead > Net absorption in 217 should significantly outpace 216 due to major move-ins including Toyota s North American Headquarters, Liberty Mutual, TD Ameritrade, and McKesson. Toyota s headquarters alone will account for 2 million square feet of absorption. Expect net absorption to exceed 215 s level of 6 million square feet. > Average asking rates will level off toward the end of 217 as the vacancy rate ticks higher and more product is delivered. Hardhit markets such as, LBJ, and Stemmons, which have vacancy rates close to or above 2%, will see falling rates and landlords investing in building improvements. Market Indicators Relative to prior period orption Under Construction Rental *Projected Summary Statistics DFW Office Market DFW Market DFW Class A DFW Class B 15.5% 16.5% 15.5% Change from prior Quarter.% -.2%.1% Absorption (Thousand Square Feet) New Supply (Thousand Square Feet) Under Construction (Thousand Square Feet) Asking Rents Per Square Foot Per Year Annual Change Quarterly Change ,524 1, Quarterly Forecast* Average $24.55 $28.44 $2.84 Change from prior Quarter.9%.6% 1.1% Year-Over-Year Change 4.2% 3.9% 4.8%

34 Market Highlights > Although absorption was down, job growth remains steady in the - area and continues to outpace job growth in Texas and the nation. From November 215 to November 216, DFW added 114,8 jobs, a growth rate of 3.3%, outpacing Texas which grew at 1.8% and the U.S. which grew at 1.6% over the same time period. > Of the 5 million square feet delivered in 216, approximately 3% was build-to-suit and 7% was speculative or only partially pre-leased. Spec multitenant buildings delivered in 216 were 67% leased as of the end of the year. The vacancy rate was flat at 15.5% from Q3 to Q4 and has held relatively steady throughout 216. Year-over-year vacancy increased.4% from 15.1%. Class A vacancy decreased.2% to 16.5% in Q4 and Class B vacancy increased.1% to 15.5%. continued to rise in the, increasing.4% to 23.8% overall, and 26.8% for Class A. Uptown/Turtle Creek saw a 1.4% drop in vacancy to 1.7% as tenants moved into space at McKinney & Olive. The North US 75 Corridor saw a 2% increase in Class A vacancy after Verizon moved its campus at 24 Glenville. New Supply, Absorption & 7,5, New Supply Absorption 25% Job Growth & Unemployment (not seasonly adjusted) Unemployment 11/215 11/216 DFW 3.9% 3.5% Texas 4.4% 4.2% U.S. 4.8% 4.7% Job Growth Annual Change # of Jobs Added DFW 3.3% 114.8K Texas 1.8% 21.8K U.S. 1.6% 2,231.K 5,, 2% Class A Office Rents & Square Feet 2,5, Rental s s continued their climb in Q4, increasing.9% from Q3 to $24.55 overall. For Class A, rates grew.6% to $28.44 gross, and Class B rates rose to $28.84 in Q4 from $2.61 in the prior quarter. After Class A rates topped $4 on average for the first time in Uptown/Turtle Creek, rates for that submarket held at $4.61 from Q3 to Q4. Preston Center s Class A rates jumped $.64 from Q3 to Q4, an increase of 1.7%. New Class A buildings are pushing rates higher as investors seek to recoup climbing construction costs and tenants seek amenities to attract a strong workforce. While rates at the top are making headlines, there are still relative bargains in the premium markets for tenants who seek a premium location but are willing to office in an older building. Class A asking rates range from $ triple net in Uptown/ Turtle Creek. s for Preston Center Class A spaces show a smaller range from $23 to $34.5 triple net. Absorption & Demand Overall net absorption for 216 was 3,6,573 square feet, less than half of 215 s absorption rate of 6,43,66 square feet. As job growth was still consistent, much of the lack of absorption could be attributed to tenants reducing the space per employee and using square footage more efficiently. Absorption will pick up considerably in 217 as large projects in North are delivered; however, will continue to see little to no absorption. Las Colinas showed the highest level of absorption in Q4 with a total of 368,58 square feet bolstered by OneSource Virtual s move into their 215, square foot headquarters. Northeast had the greatest negative absorption after Bank of America consolidated and moved from 431,579 square feet at 541 N Beach Street. 15% 1% 5% % 19% $29 $28 18% $27 $26 17% $25 16% $24 $23 15% $22 $21 14% $ Class A Class A Rental Class A, B & C Office Absorption 4,, 3,5, 3,, 2,5, 2,, 1,5, 1,, 5, -5, Class A Class B Class C 2 - Research & Forecast Report Q4 216 Office Colliers International

35 - Downtown & Suburban Office Market Summary EXISTING PROPERTIES NET ABSORPTION CONSTRUCTION RENT Submarket Bldgs Inventory Direct Sublease Vacant Current Prior Qtr Current Qtr New Supply Under Construction Average (FS) DOWNTOWN AND SUBURBAN MARKETS Class A Suburban Suburban DFW Market Class B Suburban Suburban DFW Market Class C Suburban Suburban DFW Market All Classes Suburban Suburban DFW Market 26 23,67, % 1.3% 6,183, % 26.4% (32,6) (79,937) 92, ,637 $ ,984, %.4% 874, % 14.5% (4,878) (15,449) 28,489 $ ,554, % 1.1% 15,86, % 14.8% 598,76 3,266,315 3,427,998 9,93,664 $ ,448, %.2% 613, % 14.8% 44,211 25, ,63 16,182 $ ,55, % 1.1% 23,532, % 16.7% 65,979 2,656, 3,783,462 1,724,972 $ ,75,678 2.%.% 1,216,116 2.% 2.7% 39,41 18,791 $ ,959, %.3% 364,51 9.2% 9.% (6,33) (79,466) $19.6 2,287 5,45, %.4% 18,744, % 15.2% 571, ,994 1,114,99 726,546 $ ,466, %.8% 2,825, % 16.4% (442,841) (275,516) 168,977 71,992 $2.99 2, ,547, %.4% 23,15, % 15.4% 161, ,83 1,283, ,538 $ ,155, %.% 288, % 9.2% 2,56 (,55) $ ,554.%.%.%.% 8,278 $ ,883, %.% 2,161, % 1.9% (1,76) (86,574) $ ,62, %.% 395, % 7.8% (38,49) (97,549) $ ,93 27,317,88 1.4%.% 2,845, % 9.9% (136,69) (188,35) $ ,299, %.9% 7,688, % 23.6% 9,487 (613,651) 92, ,637 $ ,619, %.3% 1,238, % 11.6% (11,181) (176,637) 28,489 $ , ,484,3 13.8%.7% 36,767, % 14.7% 1,69,356 4,18,735 4,542,988 1,657,21 $ ,516, %.5% 3,834, % 14.4% (437,39) (167,874) 431,67 232,174 $ , ,92,1 14.8%.7% 49,528, % 15.5% 63,623 3,6,573 5,67,429 11,523,51 $24.55 QUARTERLY AND ANNUAL HISTORICAL COMPARISONS 216 Q4 4, ,92,1 14.8%.7% 49,528, % 15.5% 63,623 3,6,573 5,67,429 11,523,51 $ Q3 4,38 319,168, %.6% 49,48, % 15.6% 1,737,74 2,429,95 4,315,932 11,66,55 $ Q2 4, ,575,41 15.%.6% 49,552, % 15.4% 268,67 692,21 2,722,73 11,363,968 $ Q1 4, ,564, %.6% 48,89, % 15.1% 424, ,143 1,711,45 1,388,433 $ Q4 4, ,852, %.5% 47,522, % 15.1% 1,224,259 6,43,66 6,854,489 9,411,565 $ Q4 4,183 37,998, %.7% 47,71, % 15.4% 1,277,41 6,94,143 3,722,431 7,98,987 $ Q4 4,1 34,275, %.6% 49,442, % 16.2% 269,363 2,528,377 2,353,566 6,36,934 $ Q4 4,84 31,922, %.5% 49,617, % 16.5% 49,1 2,756,316 1,678,43 2,279,336 $ Research & Forecast Report Q4 216 Office Colliers International

36 - Office Submarket Summary EXISTING PROPERTIES NET ABSORPTION CONSTRUCTION RENT Colliers Markets Bldgs Inventory Direct Sublease Vacant Current Prior Qtr Current Qtr New Supply Under Construction Average (FS) Class A Central Expressway 22 7,52, %.2% 947, % 14.5% 76, ,593 $ ,67, % 1.3% 6,183, % 26.4% (32,6) (79,937) 92, ,637 $ East 2 14,46 9.1% 1.% 14, % 16.5% 9,6 1,52 $ Far North ,645, % 1.3% 3,937,16.4%.9% 135, ,38 1,18,272 5,76,5 $ 32.7 Fort Worth 17 5,984, %.4% 874, % 14.5% (4,878) (15,449) 28,489 $ Las Colinas 77 18,784, % 2.2% 2,896, % 16.8% 436,57 351, ,219 1,3,42 $ LBJ 37 1,681,7 23.9% 1.1% 2,664, % 24.4% (59,582) 139,595 $ Lewisville / Denton 6 474, %.%,62 2.7% 6.7% 9,781 $ Mid-Cities 4 7,865,61.2% 1.3% 1,58, % 13.6%,859 19,54 38, 786,762 $ North 2 511, %.% 25,26 4.9%.% 46,234 18,799 N/A Northeast 2 414, %.% 338, % 79.7% 9,565 (7,47) $ Preston Center 22 4,235, %.2% 38, % 6.9% (18,218) (465) 171,583 $ North US-75 Corridor 61 13,391, %.5% 2,13, % 13.% (211,661) 844, , ,441 $ 26.7 South 21 3,522,15 6.9%.2% 25, % 6.8% (11,588) 13, ,63 16,182 $ 3.14 Southwest 3 34,1 5.1%.% 15,5 5.1% 5.1% $ Stemmons 4,473, %.1% 869, % 19.6% 6,896 (29,6) 63, $ Uptown / Turtle Creek 43 1,55,62 1.%.7% 1,3,4 1.7%.7% 21, , ,158 1,5,471 $ 4.61 DFW Market ,55, % 1.1% 23,532, % 16.7% 65,979 2,656, 3,783,462 1,724,972 $ Class B Central Expressway 86 5,954, %.4% 451, % 7.1% (26,919) 134,634 35, $ ,75,678 2.%.% 1,216,116 2.% 2.7% 39,41 18,791 $ East 181 7,3,23.7%.1% 94,223.9% 13.7% 147,239 (272,661) 99,5 $ Far North 392 2,881,1 15.2%.3% 3,244, % 15.5% 38,939 (284,215) 235,53 145,89 $ Fort Worth 42 3,959, %.3% 364,51 9.2% 9.% (6,33) (79,466) $ 19.6 Las Colinas ,25, %.2% 2,425,7 13.3%.9% (66,146) 222,347 58, 339,359 $ 2.8 LBJ 8 1,953, %.4% 2,133, % 22.5% 33,78 342,228 $ Lewisville / Denton 193 7,982, % 1.% 72, % 9.6% 61, , ,93 58,653 $ Mid-Cities ,83, %.5% 2,543, % 13.4% 43, , ,636 25, $ North 66 3,184, % 1.% 186,4 5.8% 5.4% (5,135) 19, ,75 23,94 $ Northeast 49 3,14, %.9% 1,468, % 35.1% (49,87) (442,551) $ Preston Center 2 881,5 1.1%.3% 92, % 1.1% (3,95) 3,478 $ North US-75 Corridor 366 2,983, %.1% 3,569,81 17.% 16.1% (92,627) 153,3 38, ,445 $ South 24 8,266, %.7% 1,171, % 13.8% (27,899) (23,194),92 48,52 $ Southwest 88 2,993, %.% 416, % 13.% (27,74) 15,636 23,195 $ Stemmons 98 7,64, %.8% 1,959, % 28.% 179,197 66,337 $ Uptown / Turtle Creek 45 2,663, %.2% 32, % 1.9% (13,39) (35,399) $ 33. DFW Market 2, ,547, %.4% 23,15, % 15.4% 161, ,83 1,283, ,538 $ Research & Forecast Report Q4 216 Office Colliers International

37 - Office Submarket Summary EXISTING PROPERTIES NET ABSORPTION CONSTRUCTION RENT Colliers Markets Bldgs Inventory Direct Sublease Vacant Current Prior Qtr Current Qtr New Supply Under Construction Average (FS) Class C Central Expressway ,14 6.8%.2% 64,942 7.% 5.% (19,114) (29,386) $ ,155, %.% 288, % 9.2% 2,56 (,55) $ East 2,673, %.% 258,42 9.7% 7.2% (66,19) (16,1) $ Far North , 8.9%.% 68,77 8.9% 4.6% (33,326) (46,788) $ Fort Worth ,554.%.%.%.% 8,278 $ Las Colinas 21 1,72, %.% 111,76 1.4% 1.2% (1,853) 8,445 $ LBJ 3 625, %.% 15, % 22.4% (1,417) 2,92 $ Lewisville / Denton 73 1,647, %.% 6,16 3.6% 3.7% 1,48,29 $ Mid-Cities 27 4,822,5 13.3%.% 64, %.7% (26,4) 37,663 $ North ,9 7.2%.% 38, % 6.9% (1,46) (13,97) $ 2.9 Northeast ,11 9.8%.% 96, % 8.4% (13,448) (34,72) $ Preston Center , %.% 74, % 26.3% 26,224 (17,375) $ 28.3 North US-75 Corridor 15 2,4,71 6.7%.% 142,64 6.7% 7.6% 19,719 97,682 $ South 144 3,78,53 8.4%.% 26, % 7.7% (23,51) (48,859) $ Southwest 66 1,381, %.% 116, % 9.% 8,799 45,478 $ Stemmons 62 1,951, %.% 431, % 22.4% 4,887 (182,99) $.92 Uptown / Turtle Creek 23 53, %.% 41, % 7.3% (4,992) 66 $ 28.8 DFW Market 1,93 27,317,88 1.4%.% 2,845, % 9.9% (136,69) (188,35) $ All Classes Central Expressway ,932, %.3% 1,464, % 1.7% 3, ,841 35, $ ,299, %.9% 7,688, % 23.6% 9,487 (613,651) 92, ,637 $ East 33 9,844, %.1% 1,176,8.%.% 9,136 (278,169) 99,5 $ Far North ,3,622.7%.9% 7,249, % 13.8% 141, ,35 1,343,775 5,95,94 $ Fort Worth 81 1,619, %.3% 1,238, % 11.6% (11,181) (176,637) 28,489 $ Las Colinas ,17, % 1.2% 5,433, % 14.7% 368,58 582,7 739,219 1,639,761 $ LBJ ,261, %.7% 4,948,7 22.2% 23.4% 26, ,743 $ Lewisville / Denton 272 1,14, %.8% 774, % 8.3% 63, , ,93 58,653 $ Mid-Cities 76 31,518,573.9%.6% 4,242, % 13.4% 3,3 324,27 259, ,762 $ North 97 4,229, 5.2%.7% 249, % 6.6% 39, ,58 156,75 23,94 $ Northeast 89 4,42, %.6% 1,92,91 43.% 33.7% (413,69) (484,678) $ 2. Preston Center 58 5,497, %.2% 474, % 8.7% 4,911 (14,362) 171,583 $ North US-75 Corridor ,5, %.3% 5,725, % 14.4% (284,569) 1,95,47 1,236,62 56,886 $ South ,866, %.4% 1,682, % 1.9% (62,988) 31, ,532 28,234 $ Southwest 157 4,679, %.% 547, % 11.3% (18,941) 61,114 23,195 $ Stemmons ,65, %.5% 3,26,4 23.2% 24.5% 19,98 (145,374) 63, $ Uptown / Turtle Creek ,672,85 1.1%.6% 1,468,36 1.7%.1% 191, , ,158 1,5,471 $ DFW Market 4, ,92,1 14.8%.7% 49,528, % 15.5% 63,623 3,6,573 5,67,429 11,523,51 $ NOTE: Statistical set consists of office properties 1, and up, including owner-occupied properties; and excluding medical office and properties where the government is 1% owner and occupier. While CoStar attempts to provide the most accurate data at the end of every quarter, revisions are made throughout the year accounting for discrepancies in past reporting. Sources: CoStar Property, Colliers Research 5 - Research & Forecast Report Q4 216 Office Colliers International

38 Leasing Activity Leasing Activity for 216 totaled 18.9 million square feet, which is about 5.5 million square feet below 215 s leasing level. Approximately 22 deals were signed in 216, signaling that tenants are leasing smaller spaces. This lags behind 215 s level by about 2 but it is significantly above the 173 transactions signed in 214, Q4 216 Top Office Lease Transactions BUILDING NAME/ADDRESS SUBMARKET TENANT LEASE DATE Plano Parker Rd Far North 3, AmerisourceBergen Specialty Group, Inc. Oct N Pky Far North, Project Ghost Nov-16* 1 E Campbell Rd North US-75 Corridor 114,247 Qorvo Oct Pky Far North 96,698 Alliance Data Systems Corporation Dec Commerce St 92,237 The Morning News, Inc. Dec Airport Fwy Mid Cities 87,185 Stericycle Nov N Pky Far North 84,81 Hilti, Inc. Oct Elm St 83,765 WeWork Oct N Glenville Dr North US-75 Corridor 64,916 Service King Collision Repair Centers Nov Solana Blvd Mid Cities 62, Goosehead Insurance Nov-16 *Colliers transaction Sales Activity Investment activity was strong in Q4, with 28 properties over 1, square feet trading. Transaction volume in Q4 exceeded even the Q3 total, which was the highest in over a decade, reaching $2.4 billion due to several large transactions. The average price per square foot rose to $29, drawn upward by prices of over $4/sf for Legacy Tower and the State Farm office campus sale-leaseback. Q4 216 Significant Sales Transactions (1, or greater) BUILDING NAME SUBMARKET RBA () YEAR BUILT BUYER SELLER SALE PRICE $/ DATE SOLD Legacy Tower Far North 342, 214 Intercontinental RE Trammell Crow Co $136,875, $4 Oct-16 State Farm Office Campus Richardson 2,57, Transwestern Investment Group State Farm Insurance Company $773,92,425 $4 Oct-16 One Greystone Center LBJ 294, Greenfield Partners Younan Properties $2,35, $69 Nov-16 Eighty-Eighty Central Central Expressway 289, Foundry Commercial Femini Rosemont $59,, $25 Nov-16 CVS Health Tower Las Colinas 314, Piedmont Office Realty Trust Columbia Property Trust $51,, $162 Dec-16 Ericsson Village Far North 49, 21 Entergy Ericsson $147,5, $31 Dec-16 Carpenter Corporate Center Las Colinas 226, Quarry Capital/ Dennis Troesh Gramercy Property Trust $48,3, $213 Dec-16 Three Forest Plaza LBJ 366, Hartman Short Term Income Properties Massachusetts Mutual Life Insurance Company $35,655, $92 Dec-16 Campus at Legacy West Far North 1,957, Dreien Opportunity Partners JC Penney $353,, $18 Dec-16 Sources: RCA, Costar, Colliers Research 6 - Research & Forecast Report Q4 216 Office Colliers International

39 Quoted gross rental rates for existing top performing office buildings BUILDING NAME ADDRESS SUBMARKET RBA () +E BUILDINGS YEAR BUILT % LEASED AVAIL. RENT ($/) OWNER KPMG Plaza at Hall Arts 2323 Ross Ave 459, % 8,93 $48. +E 2323 Ross Holdings, LLC 1919 McKinney 1919 McKinney Ave Uptown/Turtle Creek 118, % 41,174 $38. +E Ecom Real Estate Mgmt, Inc. Quadrangle Office Tower 2828 Routh St Uptown/Turtle Creek 8, % 1,619 $37.5 +E American Realty Advisors Legacy Town Center HQ 1 78 N Pky Far North 157, % 3,23 $35.5 +E Randy Heady & Company Realtors Chase Tower 22 Ross Ave 1,255, % 317,946 $35. +E Fortis Property Group, LLC 31 Monticello 31 Monticello Ave Preston Center 174, % 31,94 $ E Westdale NNN BUILDINGS McKinney & Olive 221 McKinney Ave Uptown/Turtle Creek 53, % 38,959 $45.31 NNN Crescent Real Estate Equities LLC 17Seventeen McKinney 1717 McKinney Ave Uptown/Turtle Creek 369, % 14,169 $4. NNN Gaedeke Group LLC 21 McKinney 21 McKinney Ave Uptown/Turtle Creek 36, % 18,762 $4. NNN New York State Common Retirement Fund The Star 1 Cowboys Way Far North 397, % 2,276 $39. NNN City of Frisco 2 McKinney 2 McKinney Ave Uptown/Turtle Creek 447, % 2,782 $38. NNN Union Investment Real Estate 19 Pearl 19 N Pearl St 261, % 29,2 $37.5 NNN Lincoln Property Company Q4 216 HIGHLIGHTS TOTAL OFFICE INVENTORY 143.1M 32M 149.5M 27.3M TOTAL INVENTORY BY CLASS CLASS A: 45% CLASS B: 47% CLASS C: 9% TOTAL: 11.4M SUBMARKET FAR NORTH DALLAS LAS COLINAS UPTOWN/TURTLE CREEK MID-CITIES NORTH US-75 CORRIDOR 5.9M 1.6M 1.5M 811K 57K UNDER CONSTRUCTION 22.4% ANNUALLY CURRENT 15.5% 63M NET ABSORPTION MULTI-TENANT OFFICE BUILDINGS BY SIZE 25K-5K 5K-1K 1K-25K 25K-5K 5K-1M 1 MILLION+ NUMBER OF BUILDINGS TOTAL SQUARE FEET M 15.5% M 2.7% M 18.4% M 2.% M 22.7% M 23.8% 7 - Research & Forecast Report Q4 216 Office Colliers International

40 38 OFFICE SUBMARKET MAP LLT NORTHWEST FORT WORTH SOUTHWEST FORT WORTH ALLIANCE / FOSSIL CREEK 14 35W 35W FW 5 35W B W WEST LAKE / GRAPEVINE NORTHEAST FORT WORTH SOUTHEAST FORT WORTH DENTON HURST / EULESS / BEDFORD ARLINGTON 287B LLT 35E LEWISVILLE DFW / FREEPORT COPPELL OFFICE CTR WEST LBJ EXT SOUTH IRVING 48 GRAND PRAIRIE URBAN CENTER WINGREN 33 FRISCO THE COLONY E DNT DNT UPPER TOLLWAY PLANO QUORUM BENT TREE DNT WEST LBJ 4 PRESTON CENTER STEMMONS FREEWAY 16 SOUTHWEST DALLAS 7 DNT UPTOWN / TURTLE CREEK DALLAS 35E EAST LBJ PLANO 19 RICHARDSON CENTRAL EXPWY WHITE ROCK 635 ALLEN / McKINNEY MESQUITE FORNEY TERRELL GARLAND ROCKWALL SOUTHEAST DALLAS Central Expressway 1 North 156 Bldgs 13.9m 1.5% Vac UC = None $ P 97 Bldgs 4.2m 5.9% Vac UC = 23.9K $ P 2 11 Northeast 18 Bldgs 32.3m 23.8% Vac UC = 353.6K $ P 89 Bldgs 4.4m 43% Vac UC = None $ 2. P 3 East Preston Center 33 Bldgs 9.8m % Vac UC = None $ P 58 Bldgs 5.5m 8.6% Vac UC = 171.6K $ P 4 Far North 13 North US 75 Corridor 588 Bldgs 53.3m 13.6% Vac UC = 5,95K $ P 532 Bldgs 36.5m 15.7% Vac UC = 57K $ P 5 14 South 81 Bldgs 1.6m 11.7% Vac UC = 28.5K $ P 369 Bldgs 14.9m 11.3% Vac UC = 28.2K $ P 6 Las Colinas 15 Southwest 329 Bldgs 38.1m 14.3% Vac UC = K $ P 157 Bldgs 4.7m 11.7% Vac UC = None $ P 7 LBJ 16 Stemmons 195 Bldgs 22.3m 22.2% Vac UC = None $ P 172 Bldgs 14.1m 23.2% Vac UC = 63K $ P 8 Denton / Lewisville 17 Uptown / Turtle Creek 272 Bldgs 1.1m 7.7% Vac UC = 58.7K $ P 111 Bldgs 13.7m 1.7% Vac UC = 1,51K $ P 9 Mid-Cities Market 76 Bldgs 31.5m 13.5% Vac UC = 811.8K $ P 4,323 Bldgs 319.9m 15.5% Vac UC = 11,524K $ P RESEARCHERS: MIKE OTILLIO Director of Research DIRECT mike.otillio@colliers.com KARI BEETS Research Associate DIRECT kari.beets@colliers.com Copyright Colliers International. The information contained herein has been obtained from sources deemed reliable. While every While every reasonable reasonable effort has effort been has made been to made ensure to ensure its accuracy, its accuracy, we cannot we cannot guarantee guarantee it. No responsibility it. No responsibility is assumed is assumed for any for inaccuracies. any inaccuracies. Readers Readers are encouraged are encouraged to consult to consult their professional their professional advisors advisors prior prior to acting to acting on any on of any the of material the material contained contained this in report. this report. Colliers International Market 1717 Address, McKinney Suite Avenue, # Suite 9, Address, Texas 7522 Suite # colliers.com/<<market>> colliers.com/texas/dallas 8 North American Research & Forecast Report Q4 214 Office Market Outlook Colliers International

41 Research & Forecast Report DALLAS-FORT WORTH OFFICE Q3 216 Uptown hits high-water marks for sale prices and rental rates Mike Otillio Director of Market Research Kari Beets Research Associate Construction continues to be the headline in the - market. Developers broke ground on nearly 2 million square feet in Q3 216, bringing the total office space under construction to 11.4 million square feet. Job growth in - continues to outpace other Texas cities, however it appears the upcoming election is causing trepidation among decision makers as leasing activity slowed this quarter. The Uptown submarket saw several high-water marks this quarter, bringing it closer to markets in top-tier cities. For the first time, Colliers Research reported gross asking rates for Class A office in Uptown/Turtle Creek exceeded $4. This high water mark puts Uptown/Turtle Creek on par with submarkets inside Chicago s Loop and Seattle s core. s are rising to cover the construction cost as new projects add amenities and high-end finishes. As rates increase, so do sale prices, as evidenced by prices topping $5/sf for multitenant office buildings 17Seventeen and 2 McKinney. Overall asking rental rates climbed by 1.2% from Q2 to Q However, some tenants are starting to push back, especially in areas where vacancy has plateaued. in most submarkets held relatively steady, increasing or decreasing by less than 1%. Uptown/ Turtle Creek saw an increase of 3.2% as McKinney & Olive and Parkview at McKinney both delivered but tenants have not yet moved in. A Look Ahead > rates moved slightly upward as more new spec construction was completed. As of the end of Q3 216, there was about 5.6 million square feet of speculative space being constructed, of which approximately 1.9 million was expected to finish in Q > During Q3 215, there were reports of a slowdown in leasing activity. Some of this may be tied to uncertainty concerning the November election, and therefore activity should pick up toward the latter half of Q > Development of mixed-use projects will continue due to the success of current projects such as Legacy West and The Star in Frisco, which is pushing pricing as space is leased. Market Indicators Relative to prior period orption Under Construction Rental *Projected Summary Statistics DFW Office Market DFW Market DFW Class A DFW Class B 15.4% 16.7% 15.3% Change from prior Quarter -.1% -.5%.4% Absorption (Thousand Square Feet) New Supply (Thousand Square Feet) Under Construction (Thousand Square Feet) Asking Rents Per Square Foot Per Year Annual Change Quarterly Change 1,64 1, ,521 1, th Qtr. Forecast* 11,413 1,363 1,5 Average $24.33 $28.26 $2.65 Change from prior Quarter 1.2%.8% 1.6% Year-Over-Year Change 5.2% 4.9% 6.5%

42 Market Highlights > The - area continues to see solid economic growth. August job growth was an annualized 5.3% in and 1.1% in. As more people joined the labor market, the unemployment rate rose to 4.6% in and 3.7% in, but remains behind the U.S. rate of 5.%. > Speculative office construction continues as investors continue to see opportunity from rising rental rates million square feet was under construction at the end of Q3 216, but less than half is in build-to-suit properties. The remaining square footage under construction is spec construction which is 31% pre-leased. The vacancy rate has held steady over the last few quarters and decreased only.1% from Q2 to 15.4% in Q Class A vacancy decreased.5% to 16.7%, while Class B vacancy rose.4% to 15.3%. North continues to have the lowest vacancy rate, dropping 2% to 6.7%, standing in sharp contrast to its neighbor Northeast which had the highest vacancy rate of 32.3%. Preston Center had the lowest Class A vacancy rate of of the two markets that are over 7% Class A at 6.9%, half of Uptown/Turtle Creek s vacancy rate of 13.%. New Supply, Absorption & Job Growth & Unemployment (not seasonly adjusted) Unemployment 8/215 8/216 DFW 4.1% 4.1% Texas 4.5% 4.9% U.S. 5.2% 5.% Job Growth Annual Change # of Jobs Added DFW 3.4% 117.3K Texas 1.6% 19.6K U.S. 1.7% 2,443.K 7,5, New Supply Absorption 25% Class A Office Rents & Square Feet 5,, 2,5, Absorption & Demand Overall net absorption continues to lag behind 215 s rate. The market absorbed 2.5 million square feet, just over half of what was absorbed during the same quarter 215. Absorption is predicted to pick up in Q4 216, as tenants waiting for buildings to be delivered move in. The 53, McKinney & Olive, which delivered this quarter and is 87.5% leased will see over 1, square feet of additional absorption in Q4. The North US 75 Corridor had the highest absorption of any submarket in Q3 with 1.1 million. This is bolstered by State Farm s move to 499,992 in building D of their CityLine Campus, and RealPage s headquarters relocation to 221 Lakeside Blvd. Occupancy in the has fallen significantly this year, with negative 548, of absorption overall and 62, square feet of negative absorption for Class A. Rental s After surpassing $24 overall for the first time in Q2, rates continued to grow in Q3 averaging a gross asking rate of $24.33, an increase of 1.2% from the prior quarter. Class A rates rose $.22 to $28.26 and Class B rates grew $.33, averaging $2.65 per square foot. Uptown/Turtle Creek rates topped $4 for the first time, putting the submarket on par with submarkets in major markets such as Chicago, Seattle, and Los Angeles. However, Uptown still remains a bargain when compared to premium coastal markets such as Midtown Manhattan and San Francisco s Financial District, which command between $65 to $85 per square foot. With each new project in Uptown seeking to outdo the others with amenities and high-end finishes, the submarket s asking rates are pulling far ahead of its former competitor Preston Center, which as recently as Q3 214 commanded higher rates. Even though Class A rates in Preston Center rose $.37 in Q3 216, its average asking rate is almost $3 less than Uptown s asking rates. 2% 15% 1% 5% % 19% $29 $28 18% $27 $26 17% $25 16% $24 $23 15% $22 $21 14% $ Class A Class A Rental Class A, B & C Office Absorption 4,, 3,5, 3,, 2,5, 2,, 1,5, 1,, 5, -5, Class A Class B Class C 2 - Research & Forecast Report Q3 216 Office Colliers International

43 - Downtown & Suburban Office Market Summary EXISTING PROPERTIES NET ABSORPTION CONSTRUCTION RENT Submarket Bldgs Inventory Direct Sublease Vacant Current Prior Qtr Current Qtr New Supply Under Construction Average (FS) DOWNTOWN AND SUBURBAN MARKETS Class A Suburban Suburban DFW Market Class B Suburban Suburban DFW Market Class C Suburban Suburban DFW Market All Classes Suburban Suburban DFW Market 25 22,964, % 1.1% 5,984, % 26.1% 9,171 (62,491) 41,937 $ ,914, %.5% 869, % 14.5% (11,47) (1,571) 28,489 $ ,945, % 1.1% 16,192, % 15.6% 1,62,871 2,613,71 3,136,998 9,52,685 $ ,448, %.2% 658, % 13.6% 93,32 16,98 262,63 16,182 $ ,272, % 1.% 23,75, % 17.2% 1,694,27 2,7,989 3,399,628 1,363,293 $ ,99, %.% 1,255, % 21.7% 69,955 69,75 $ ,959, %.4% 358,198 9.% 8.3% (3,369) (73,163) $ ,269 4,69, %.4% 18,829, % 14.7% (26,248) 321,217 72,232 1,,717 $ ,445, %.5% 2,343,4 16.2% 16.3% 57,22 174,4 8,269 37,4 $2.43 2, ,114, %.4% 22,786, % 14.9% (163,64) 492,216 83,51 1,49,757 $ ,144, %.4% 29, % 9.% (7,25) (15,11) $ , %.% 38, 5.2% 5.2% 8,278 $ ,93, %.% 2,63, % 11.2% 74,57 15,164 $ ,588, %.% 356, % 7.9% 6,111 (59,14) $18.7 1,92 27,557, %.1% 2,749,419 1.% 1.2% 73,593 (5,79) $ ,28, %.8% 7,53, % 23.6% 72,11 (547,752) 41,937 $ ,64, %.5% 1,265, % 11.5% (41,416) (165,456) 28,489 $ , ,648, %.6% 37,85, % 14.8% 1,417,13 2,949,452 3,839,23 1,533,42 $ ,482, %.4% 3,358, % 14.1% 156, ,252 39, ,222 $ ,3 318,944, %.6% 49,24, % 15.5% 1,63,98 2,5,496 4,23,9 11,413,5 $24.33 QUARTERLY AND ANNUAL HISTORICAL COMPARISONS 216 Q3 4,3 318,944, %.6% 49,24, % 15.5% 1,63,98 2,5,496 4,23,9 11,413,5 $ Q2 4, ,422,98 15.%.5% 49,319, % 15.4% 463,67 98,516 2,78,73 1,936,5 $ Q1 4, ,411, %.6% 48,772, % 15.1% 444,99 444,99 1,697,45 1,27,613 $ Q4 4, ,714, %.6% 47,519, % 15.1% 1,255,83 6,39,64 6,823,534 9,3,55 $ Q3 4,23 313,314, %.6% 47,375, % 15.% 1,244,313 5,53,837 5,424,134 6,877,517 $ Q3 4,166 36,922, %.7% 47,353, % 16.% 2,551,319 4,81,33 2,735,584 7,51,995 $ Q3 4,18 33,632,8 15.6%.6% 49,1, % 16.6% 1,993,138 2,324,37 1,823,761 5,229,383 $ Q3 4,69 31,528, %.5% 49,837, % 16.8% 1,337,995 2,2,69 1,397,773 2,454,324 $ Research & Forecast Report Q3 216 Office Colliers International

44 - Office Submarket Summary EXISTING PROPERTIES NET ABSORPTION CONSTRUCTION RENT Colliers Markets Bldgs Inventory Direct Sublease Vacant Current Prior Qtr Current Qtr New Supply Under Construction Average (FS) Class A Central Expressway 22 7,51, %.2% 1,24, % 14.8% 19, ,74 $ ,964, % 1.1% 5,984, % 26.1% 9,171 (62,491) 41,937 $ East 2 14, % 1.% 23, % 16.5% 1,496 $ Far North ,717, % 1.2% 4,98,937.9%.7% (71,44) 653,27 1,18,272 5,51,948 $ Fort Worth 17 5,914, %.5% 869, % 14.5% (11,47) (1,571) 28,489 $ 29. Las Colinas 76 18,564, % 2.2% 3,116, % 17.% 39,981 (83,681) 466,219 1,135,42 $ LBJ 37 1,684, %.7% 2,574, % 24.1% 3,79 199,177 $ Lewisville / Denton 6 474, %.%,62 2.7% 8.6% 7,513 9,781 $ Mid-Cities 4 7,864,56.3% 1.3% 1,7, % 13.6% 32,377 96,681 38, 723,84 $ 26.4 North 2 511, %.% 71, %.% 48,283 62,565 N/A Northeast 2 414, %.% 347, % 79.7% (8,341) (16,972) $ 21.3 Preston Center 22 4,181, %.2% 29, % 8.4% 62,284 17, ,583 $ North US 75 Corridor 6 13,315,669.3%.7% 1,726, % 21.1% 1,278,376 1,55, , ,441 $ South 21 3,522,15 6.5%.3% 239,21 6.8% 3.6% 53,9 115, ,63 16,182 $ 3.4 Southwest 3 34,1 5.1%.% 15,5 5.1% 5.1% $ Stemmons 4,175, %.1% 876,7 21.% 2.8% (6,197) (36,58) 63, $ Uptown / Turtle Creek 43 1,47,585.4%.6% 1,363, % 9.5% 236,391 36, ,158 1,5,471 $ 4.61 DFW Market ,272, % 1.% 23,75, % 17.2% 1,694,27 2,7,989 3,399,628 1,363,293 $ Class B Central Expressway 85 5,891, %.4% 4,29 7.% 7.6% 34,9 159,453 35, $ ,99, %.% 1,255, % 21.7% 69,955 69,75 $ East 181 6,978, %.1% 948,9 13.6% 14.% 3,266 (4,429) 99,5 $ Far North 388 2,91, %.1% 3,272, % 13.7% (327,97) (31,45) 173, ,89 $ 22.3 Fort Worth 42 3,959, %.4% 358,198 9.% 8.3% (3,369) (73,163) $ Las Colinas ,248,636.9%.1% 2,358,861.9% 13.2% 97, ,493 58, 339,359 $ 2.79 LBJ 9 1,965, %.7% 2,485, % 23.1% 42,97 (9,75) $ 18.2 Lewisville / Denton 19 7,927, % 1.3% 686,85 8.7% 9.5% 95,49 254, ,93 66,275 $ Mid-Cities ,566,99.4%.4% 2,381,85.8%.4% (27,778) 5, ,71 8,741 $ North 67 3,173, %.9% 176, % 6.2% 62, , ,367 23,94 $ Northeast 49 3,39, %.9% 1,36, % 33.9% (7,38) (11,327) $ Preston Center 2 881,5 9.8%.3% 89, % 9.5% (5,139) 6,573 $ North US 75 Corridor 361 2,884, %.1% 3,418, % 15.2% (18,632) 29,98 153,268 21,753 $ South 22 8,232, %.2% 1,13, % 13.6% 1,991 17,753,92 13,1 $ Southwest 88 2,996,29 13.%.% 388, % 13.5% 37,348 43,376 23,195 $ Stemmons 99 7,688, %.8% 2,98, % 27.4% 6,255 (,698) $ Uptown / Turtle Creek 45 2,668,27 1.3%.6% 289, % 8.5% (62,483) (22,9) $ DFW Market 2, ,114, %.4% 22,786, % 14.9% (163,64) 492,216 83,51 1,49,757 $ Research & Forecast Report Q3 216 Office Colliers International

45 - Office Submarket Summary EXISTING PROPERTIES NET ABSORPTION CONSTRUCTION RENT Colliers Markets Bldgs Inventory Direct Sublease Vacant Current Prior Qtr Current Qtr New Supply Under Construction Average (FS) Class C Central Expressway ,4 5.2%.2% 5, % 2.% (31,435) (11,77) $ ,144, %.4% 29, % 9.% (7,25) (15,11) $ East 119 2,664, %.% 191, % 8.% 21,43 49,499 $ Far North ,63 4.1%.% 35, % 2.9% (1,284) (13,462) $ 13.1 Fort Worth 23 73, %.% 38, 5.2% 5.2% 8,278 $ 16.2 Las Colinas 21 1,72, %.% 19, % 1.5% 3,187 1,298 $ 13.8 LBJ 3 625, %.% 14, % 24.4%,11 13,337 $ Lewisville / Denton 74 1,846, %.% 88,27 4.8% 5.5%,882 9,542 $ Mid-Cities 26 4,854,16.6%.% 6,387.6% 13.6% 49,51 59,967 $ North ,9 6.9%.% 36, % 9.6% 14,48 (,51) $ 2.27 Northeast ,11 8.4%.% 83, % 6.7% (16,934) (21,272) $ Preston Center 15 35,329 2.%.% 7,5 2.% 17.8% (7,66) (43,599) $ North US 75 Corridor 15 2,4,15 7.2%.% 154, % 8.5% 26,45 85,997 $ South 144 3,64, %.% 236, % 8.% 8,565 (25,358) $ 18.6 Southwest 64 1,244, %.% 117,9 9.5% 11.4% 23,328 36,679 $ 17.2 Stemmons 62 2,8, %.% 468, % 21.8% (29,673) (186,985) $ Uptown / Turtle Creek 24 54, %.% 24, % 6.% 5,418 5,598 $ DFW Market 1,92 27,557, %.1% 2,749,419 1.% 1.2% 73,593 (5,79) $ All Classes Central Expressway ,886,81 1.4%.3% 1,486, % 1.9% 22,49 459,45 35, $ ,28, %.8% 7,53, % 23.6% 72,11 (547,752) 41,937 $ 25.7 East 32 9,783, %.1% 1,163, %.4% 51,39 (361,434) 99,5 $ Far North ,483, %.8% 7,46, %.9% (49,631) 329,295 1,281,437 5,727,37 $ Fort Worth 82 1,64, %.5% 1,265, % 11.5% (41,416) (165,456) 28,489 $ Las Colinas ,885, % 1.1% 5,585, % 15.% 14, ,11 524,219 1,474,761 $ LBJ ,276, %.7% 5,199, % 23.6% 58,861 22,89 $ Lewisville / Denton 27 1,249,38 6.6% 1.% 787, % 8.5% 115,84 355,2 119,93 66,275 $ Mid-Cities ,285,521.4%.6% 4,64, %.9% 54,1 282, ,71 84,581 $ North 98 4,217, %.7% 284, % 8.7% 5, 218,41 115,367 23,94 $ 22.5 Northeast 89 4,445, %.6% 1,467, % 32.3% (32,583) (49,571) $ 19.2 Preston Center 57 5,413, %.2% 449,58 8.3% 9.2% 49,539 (19,273) 171,583 $ North US 75 Corridor ,324, %.3% 5,298, % 16.9% 1,3,789 1,351,51 1,5, ,194 $ 23.4 South ,819,77 1.6%.2% 1,66,17 1.8% 1.2% 63,646 17, , ,282 $ Southwest 155 4,544, %.% 521, %.4% 6,676 8,55 23,195 $ Stemmons ,872, %.5% 3,443, % 24.6% (29,615) (236,191) 63, $ Uptown / Turtle Creek 1 13,643, %.6% 1,677,546.3% 9.1% 179,326 29, ,158 1,5,471 $ 39.1 DFW Market 4,3 318,944, %.6% 49,24, % 15.5% 1,63,98 2,5,496 4,23,9 11,413,5 $ NOTE: Statistical set consists of office properties 1, and up, including owner-occupied properties; and excluding medical office and properties where the government is 1% owner and occupier. While CoStar attempts to provide the most accurate data at the end of every quarter, revisions are made throughout the year accounting for discrepancies in past reporting. Sources: CoStar Property, Colliers Research 5 - Research & Forecast Report Q3 216 Office Colliers International

46 Leasing Activity Year-to-date leasing activity totals 14.2 million square feet, slightly less than the same period in 215. The 2,95 deals signed through Q3 216 is about on pace with 215, indicating that the average deal signed this year is smaller than in the prior year. Q3 216 Top Office Lease Transactions BUILDING NAME/ADDRESS SUBMARKET TENANT LEASE DATE 6 Hidden Rdg Office Ctr/West LBJ Ext 576,138 Verizon Aug-16 1 Elm St 229, Environmental Protection Agency Region 6 Sep-16 1 E Campbell Rd Richardson 114,247 Qorvo Sep-16 1 Cowboys Way Frisco/The Colony 79,428 FM Global* Aug-16 1 Cowboys Way Frisco/The Colony 63,325 Bank of America Aug E Campbell Rd Richardson Ret 57,327 Convergys Corporation Jul N Central Expy Central Expressway 52,7 U.S. Department of Veterans Affairs Aug-16 3 E John Carpenter Fwy Urban Center/Wingren 45,86 BMO Harris Bank Aug McKinney Ave Uptown/Turtle Creek 44,53 WeWork Sep Highland Dr Lewisville 4, Ezlynx Aug-16 *Colliers transaction Sales Activity Investment activity continued steady with 2 properties greater than 1, trading during Q3. Transaction volume increased to $1.9 billion due to record pricing on several transactions. The average price per square foot rose $5 to $175 during Q3, but still remains below the national average of $26 per square foot. Q3 216 Significant Sales Transactions (1, or greater) BUILDING NAME SUBMARKET RBA () YEAR BUILT BUYER SELLER SALE PRICE $/ DATE SOLD Emerald Plaza* One Victory Park Quorum/Bent Tree Uptown/ Turtle Creek 74, Grander Capital Partners TriGate Capital $7,55, $ 7/6/ , Clarion Partners Hines Secuirties $183,, $419 7/14/216 Chase Tower 1,248, Fortis Property Group Hines REIT $273,, $219 8/1/216 2 McKinney Ave Uptown/ Turtle Creek 447, Union Investment Real Estate GmbH Corrigan Properties & Lincoln Porperty Company $225,8, $55 8/3/216 Verizon Irving Regional Headquarters - 6 & 7 Hiddge Ridge Dr Office Center/ West LBJ 1,15, 1991 Mesirow Financial Verizon $344,, $299 8/17/216 Park Creek Place* Uptown/ Turtle Creek 1, Angelo, Gordon, & Co. Embrey Family Foundation $23,, $25 8/22/216 17Seventeen McKinney Uptown/ Turtle Creek 369,17 21 Gaedeke Group Granite Properties $19,, $526 9/29/216 *Colliers transaction 6 - Research & Forecast Report Q3 216 Office Colliers International

47 Quoted gross rental rates for existing top performing office buildings BUILDING NAME ADDRESS SUBMARKET RBA () YEAR BUILT % LEASED AVAIL. RENT ($/) OWNER +E BUILDINGS KPMG Plaza at Hall Arts 2323 Ross Ave 459, % 8,93 $48. +E 2323 Ross Holdings, LLC Victory Plaza West 39 Olive St Uptown/Turtle Creek 116, % 55,646 $38.5 +E Estein & Associates USA 1919 McKinney 1919 McKinney Ave Uptown/Turtle Creek 118, % 41,174 $38. +E Ecom Real Estate Mgmt, Inc. Victory Plaza East 33 Olive St Uptown/Turtle Creek 11, 26 93% 13,784 $37. +E Estein & Associates USA Quadrangle Office Tower 2828 Routh St Uptown/Turtle Creek 8, % 1,619 $36. +E American Realty Advisors 8235 Douglas 8235 Douglas Ave Preston Center 163, % 4,7 $35. +E Ascentis Real Estate Partners, LLC NNN BUILDINGS McKinney & Olive 221 McKinney Ave Uptown/Turtle Creek 53, % 65,435 $4.15 NNN Crescent Real Estate Equities LLC 17Seventeen McKinney 1717 McKinney Ave Uptown/Turtle Creek 369, % 14,166 $4. NNN Gaedeke Group LLC 2 McKinney 2 McKinney Ave Uptown/Turtle Creek 447, % 25,272 $4. NNN Union Investment Real Estate GmbH 21 McKinney 21 McKinney Ave Uptown/Turtle Creek 36, % 24,364 $4. NNN New York State Common Retirement Fund Rosewood Court 211 Cedar Springs Rd Uptown/Turtle Creek 45, % 55,894 $36.5 NNN Rosewood Property Company Frost Tower 295 N Harwood St Uptown/Turtle Creek 167, % 9,75 $36. NNN Harwood International Q3 216 HIGHLIGHTS TOTAL OFFICE INVENTORY 142.3M 318.9M 149.1M 27.6M TOTAL INVENTORY BY CLASS CLASS A: 45% CLASS B: 47% CLASS C: 9% TOTAL: 11.4M SUBMARKET FAR NORTH DALLAS UPTOWN/TURTLE CREEK LAS COLINAS MID-CITIES NORTH US 75 CORRIDOR 5.7M 1.5M 1.5M 85K 626K UNDER CONSTRUCTION 66.% ANNUALLY CURRENT 15.5% 1.6M NET ABSORPTION MULTI-TENANT OFFICE BUILDINGS BY SIZE 25K-5K 5K-1K 1K-25K 25K-5K 5K-1M 1 MILLION+ NUMBER OF BUILDINGS TOTAL SQUARE FEET M 15.1% M 19.9% M 18.8% M 17.6% M 16.5% M 22.1% 7 - Research & Forecast Report Q3 216 Office Colliers International

48 38 OFFICE SUBMARKET MAP LLT NORTHWEST FORT WORTH SOUTHWEST FORT WORTH ALLIANCE / FOSSIL CREEK 14 35W 35W 183 FW 5 35W B 2 35W NORTHEAST FORT WORTH WEST LAKE / GRAPEVINE SOUTHEAST FORT WORTH DENTON HURST / EULESS / BEDFORD ARLINGTON 287B LLT 35E LEWISVILLE DFW / FREEPORT COPPELL OFFICE CTR WEST LBJ EXT URBAN CENTER WINGREN SOUTH IRVING GRAND PRAIRIE FRISCO THE COLONY DNT DNT UPPER TOLLWAY PLANO QUORUM BENT TREE DNT WEST LBJ 4 35E PRESTON CENTER DNT STEMMONS FREEWAY 16 SOUTHWEST DALLAS 7 UPTOWN / TURTLE CREEK DALLAS 35E EAST LBJ PLANO 19 RICHARDSON CENTRAL EXPWY WHITE ROCK 635 ALLEN / McKINNEY MESQUITE FORNEY TERRELL 13 GARLAND ROCKWALL SOUTHEAST DALLAS Central Expressway 1 North 156 Bldgs 13.9m 1.7% Vac UC = None $ P 98 Bldgs 4.2m 6.7% Vac UC = 23.9K $ 22.5 P 2 11 Northeast 16 Bldgs 32.2m 23.4% Vac UC = 41.9K $ 25.7 P 89 Bldgs 4.4m 33% Vac UC = None $ 19.2 P 3 East Preston Center 32 Bldgs 9.8m 11.9% Vac UC = 99.5K $ P 57 Bldgs 5.4m 8.3% Vac UC = 171.6K $ P 4 Far North 13 North US 75 Corridor 585 Bldgs 53.5m 13.8% Vac UC = 5,727K $ P 526 Bldgs 36.3m 14.6% Vac UC = 626K $ 23.4 P 5 14 South 82 Bldgs 1.6m 11.9% Vac UC = 28.5K $ P 367 Bldgs 14.8m 1.8% Vac UC = 173.3K $ P 6 Las Colinas 15 Southwest 328 Bldgs 37.9m 14.7% Vac UC = K $ P 155 Bldgs 4.5m 11.5% Vac UC = None $ P 7 LBJ 16 Stemmons 196 Bldgs 22.3m 23.3% Vac UC = None $ P 173 Bldgs 13.9m 24.8% Vac UC = 63K $ P 8 Denton / Lewisville 17 Uptown / Turtle Creek 27 Bldgs 1.2m 7.7% Vac UC = 66.3K $ P 1 Bldgs 13.6m.3% Vac UC = 1,51K $ 39.1 P 9 Mid-Cities Market 698 Bldgs 31.3m 13% Vac UC = 84.6K $ P 4,3 Bldgs 318.9m 15.4% Vac UC = 11,413K $ P RESEARCHERS: MIKE OTILLIO Director of Research DIRECT mike.otillo@colliers.com KARI BEETS Research Associate DIRECT kari.beets@colliers.com Copyright Colliers International. The information contained herein has been obtained from sources deemed reliable. While every While every reasonable reasonable effort has effort been has made been to made ensure to ensure its accuracy, its accuracy, we cannot we cannot guarantee guarantee it. No responsibility it. No responsibility is assumed is assumed for any for inaccuracies. any inaccuracies. Readers Readers are encouraged are encouraged to consult to consult their professional their professional advisors advisors prior prior to acting to acting on any on of any the of material the material contained contained this in report. this report. Colliers International Market 1717 Address, McKinney Suite Avenue, # Suite 9, Address, Texas 7522 Suite # colliers.com/<<market>> colliers.com/texas/dallas 8 North American Research & Forecast Report Q4 214 Office Market Outlook Colliers International

49 Research & Forecast Report DALLAS/FORT WORTH OFFICE Q2 216 Construction Continues as Market Shows Signs of a Slowdown Mike Otillio Director of Market Research Kari Beets Research Associate Cranes are flying over the - area, as more square feet of office space is under construction than any time since Q2 1999, when the dot-com boom was just beginning. Job growth continues to climb, supporting the demand for new office space. -Fort Worth has added 39,8 jobs so far in 216, with most gains coming in financial activities and education and health services. In response to the influx of new jobs, - is now the top U.S. metro in terms of annual new-home starts, overtaking Houston which continues to struggle as oil prices remain low. Growth in the half of the metroplex remains constrained by its reliance on energy and manufacturing. New construction is primarily in the eastern half of the DFW area with only 3 of 53 total buildings under construction in the loop around. The pace of growth in the real estate market has been slowing for the past few quarters, with average rents continuing upward at a slower rate and vacancy levels hovering up and down several tenths from 15% the last few quarters. The Federal Reserve s Beige Book also noted concerns about the job market, as several sectors observed skills shortages. The construction boom in DFW has been measured growth currently more than 65% of projects under construction are pre-leased, and many more have strong activity from potential tenants. Lenders are still cautious in approving debt, especially for construction loans. While the market may be slowing, caution by both developers and lenders will allow it to continue on a steady path upward. A Look Ahead > Slowdown in rental rate growth will continue, as vacancy rates have flattened out and demand is slower than in 215. > Almost 3.4 million square feet is expected to deliver in the second half of 216, of which 65% is preleased. Deliveries in the Uptown/Turtle Creek submarket are expected to add 872, square feet, while Far North will add almost 1.2 million square feet to its inventory. > The delivery of the almost-full McKinney & Olive in August will create large vacancies in the submarket as downtown law firms move into new Uptown space. This trend will create opportunities for value-add plays in the Downtown market as buildings will require renovations and new leasing strategies to compete with Uptown. Market Indicators Relative to prior period NET ABSORPTION UNDER CONSTRUCTION RENTAL RATE *Projected Summary Statistics DFW Office Market DFW Market DFW Class A DFW Class B 15.4% 16.5% 15.2% Change from prior Quarter.1%.2% -.2% Absorption (Thousand Square Feet) New Supply (Thousand Square Feet) Under Construction (Thousand Square Feet) Asking Rents Per Square Foot Per Year Annual Change Quarterly Change ,945 1, nd Qtr. Forecast* Average $24.2 $28.11 $2.31 Change from prior Quarter.4%.7%.6% Year-Over-Year Change 6.8% 6.8% 6.4%

50 Market Highlights > Economic activity continues to expand in the metroplex, especially in where the Federal Reserve noted an annual 4.1% increase in jobs in May, while experienced a gain of.6%. s economic forecast should improve as the energy sector continues to rebound. > vacancy in the market continues steady at 15.4%, only a.1% increase from the prior quarter, as average rents increase at a slowing rate. > Construction continues to increase above the levels in the boom, but still well below the 16 million square feet under construction in the late 199s. Most developers have waited for a large tenant to break ground, but there are nearly 2 million square feet in large spec office projects currently under construction. in the - market continued its gradual rise, increasing from 15.3% in Q1 to 15.4% in Q2 216 and up.5% from Q Class A vacancy increased.2% from 16.3% to 16.5%, while Class B vacancy decreased.2%. The Lewisville/Denton and North submarkets tied for the lowest overall vacancy rate at 8.4%. Northeast had the highest vacancy rate of 31.5% due to large vacancies in Fossil Creek Business Park and the FAA Headquarters. Preston Center continued to have the lowest Class A vacancy rate of any market with more than 1 buildings at 8.4%, but this was a.5% increase over the prior quarter. New Supply, Absorption & Square Feet 7,5, 5,, 2,5, New Supply Absorption Absorption & Demand Net absorption continued at a slower pace than in 215, with 532,66 square feet absorbed in Q2 216 for a total of 1,53,8 absorbed year-to-date. This is over 2.8 million less than absorbed through Q Class A absorption was 6% of the Q1 216 rate at 22,563 square feet. However, absorption should pick up at the end of the year as several large projects are delivered. Far North absorbed 877,272, the highest of any submarket in the metroplex, which included Pizza Hut s move-in to their headquarters expansion and 38, square feet of sublease space. Las Colinas had the lowest level at negative 416,395 square feet, 28, of which was NEC Corporation s vacating the Apex at Los Colinas after Mercer s purchase. Rental s Rental rates continued their gradual climb in the second quarter, topping $24 for the average gross rate for the first time. However, the increase in rental rate has slowed the average rate grew only.42% from Q1 to Q Class A rental rates grew to $28.11 on average, while Class B rates rose $. to $2.31. For Class A product, Uptown/Turtle Creek continues to command premium rates of $39.21 on average, boosted by rates near $5 gross at 1717 McKinney, McKinney & Olive, and other new projects. After falling slightly in Q1 216, Preston Center Class A rates rose again to an average of $37.3 P. 25% 2% 15% 1% 5% % Job Growth & Unemployment (not seasonly adjusted) Unemployment 5/15 5/16 DFW 4.% 3.5% Texas 4.3% 4.2% U.S. 5.3% 4.5% Job Growth Annual Change # of Jobs Added DFW 3.7% 5.3K Texas 1.5% 171.8K U.S. 1.6% 2,324.K Class A Office Rents & 19% 18% 17% 16% 15% 14% Class A, B & C Office Absorption 4,5, 4,, 3,5, 3,, 2,5, 2,, 1,5, 1,, 5, , Class A Class A Rental Class A Class B Class C $29 $28 $27 $26 $25 $24 $23 $22 $21 $2 2 / Research & Forecast Report Q2 216 Office Colliers International

51 / Downtown & Suburban Office Market Summary EXISTING PROPERTIES NET ABSORPTION CONSTRUCTION RENT Submarket Bldgs Inventory Direct Sublease Vacant Current Prior Qtr Current Qtr New Supply Under Construction Average (FS) DOWNTOWN AND SUBURBAN MARKETS Class A Suburban Suburban DFW Market Class B Suburban Suburban DFW Market Class C Suburban Suburban DFW Market All Classes Suburban Suburban DFW Market 25 22,964, %.9% 5,545, % 23.7% (113,645) (5,27) 342,879 $ ,914, %.6% 858, % 13.7% (48,249) (89,524) 28,489 $ ,34, %.9% 16,226, % 14.9% 32,37 1,4,982 1,979,1 9,95,99 $ ,266, %.1% 58, 13.6% 13.6% 8,87 67,948 91, ,584 $ ,485, %.8% 23,29, % 16.3% 22,563 63,136 2,7,748 1,36,942 $ ,99, %.1% 1,338, % 21.7% (11,874) (25) $ ,959,789 8.%.% 316,873 8.% 7.6% (14,62) (42,794) $ ,25 5,82, %.3% 18,779,65 15.% 15.2% 27, , ,738 8,519 $ ,389, %.5% 2,315, % 16.5% 75,882 15,978 57,1 95,97 $2.34 2, ,531, %.3% 22,75, % 15.4% 32,24 585,932 4,85 97,616 $ ,144, %.4% 283,919 9.% 9.6% 16,835 (7,986) $ , %.% 38, 5.2% 5.5% 2, 8,278 $ ,189, %.% 2,6, % 11.% (14,666) (69,881) $ ,554, %.% 37, % 7.9% (,3) (66,351) $ ,83 27,619, %.1% 2,819,38 1.2% 1.2% (8,143) (135,94) $ ,28, %.7% 7,167, % 21.9% (18,684) (58,461) 342,879 $ ,64, %.3% 1,213, % 1.9% (6,311) (4,4) 28,489 $ ,52 251,611, %.5% 37,132, % 14.7% 557,998 1,578,54 2,334,838 9,98,59 $ ,21, %.3% 3,266, % 14.3% 143,657 17, ,76 4,681 $ , ,635, %.5% 48,779, % 15.3% 532,66 1,53,8 2,483,598 1,944,558 $24.2 QUARTERLY AND ANNUAL HISTORICAL COMPARISONS 216 Q2 4, ,635, %.5% 48,779, % 15.3% 532,66 1,53,8 2,483,598 1,944,558 $ Q1 4, ,846, %.6% 48,522, % 15.% 52,468 52,468 1,694,895 1,734,495 $ Q4 4, ,152, %.6% 47,355, % 15.1% 1,31,7 6,5,318 6,793,268 9,627,41 $ Q3 4, ,782, %.6% 47,287, % 14.9% 1,284,475 5,21,618 5,423,64 7,187,44 $ Q2 4, ,752, %.7% 46,543, % 15.3% 1,738,271 3,926,143 3,394,167 7,86,163 $ Q2 4,6 36,31, %.7% 48,841, % 15.9% 774,878 2,173,266 1,68,6 6,445,89 $ Q2 4,81 33,186, %.7% 5,168, % 16.4% (82,959) 286, ,62 3,22,188 $ Q2 4,52 31,542, %.5% 5,675, % 16.8% 751,475 1,164,395 1,184,211 2,42,888 $ / Research & Forecast Report Q2 216 Office Colliers International

52 / Office Submarket Summary EXISTING PROPERTIES NET ABSORPTION CONSTRUCTION RENT Colliers Markets Bldgs Inventory Direct Sublease Vacant Current Prior Qtr Current Qtr New Supply Under Construction Average (FS) Class A Central Expressway 22 7,51, %.2% 1,68, % 14.8% (26,149) 267,754 $ ,964, %.9% 5,545, % 23.7% (113,645) (5,27) 342,879 $ East 2 14, % 1.% 23, % 16.5% 1,496 $ Far North ,116, %.6% 3,727,5.%.5% 576,34 743,716 91,532 5,167,948 $ Fort Worth 17 5,914, %.6% 858, % 13.7% (48,249) (89,524) 28,489 $ 29.2 Las Colinas 76 18,649, % 2.2% 3,152, % 14.% (541,453) (3,662) 466, ,42 $ LBJ 37 1,678, %.7% 2,56, % 24.9% 94, ,244 $ Lewisville / Denton 6 474, %.% 22, % 1.8% 8,964 8,964 $ Mid-Cities 39 7,826,56.2% 1.4% 1,65, % 16.% 183,337 64,34 198, $ 26.6 North 2 511, %.% 119, %.% 14,282 14,282 N/A Northeast 2 43, %.% 339, % 3.% (8,631) (8,631) $ 21.3 Preston Center 22 4,177, %.5% 352, % 7.9% (23,681) (44,531) 186,257 $ 37.3 North US 75 Corridor 59 13,68,2 2.5%.4% 2,731, % 2.2% (,511) (226,348) 62, , $ 26.3 South 2 3,351,3 3.5%.2% 1, % 3.2% 74,436 62,297 91, ,584 $ Southwest 3 34,1 5.1%.% 15,5 5.1% 5.1% $ Stemmons 1 3,684, %.% 616,1 16.7% 17.3% 21,543 21,637 63, $ 19.9 Uptown / Turtle Creek 42 1,168, %.3% 893,32 8.8% 9.1% 28,534 4,14 1,936,383 $ DFW Market ,485, %.8% 23,29, % 16.3% 22,563 63,136 2,7,748 1,36,942 $ Class B Central Expressway 84 5,924, %.3% 52, % 9.9% 67,548 19,418 35, $ ,99, %.1% 1,338, % 21.7% (11,874) (25) $ East 19 7,27, %.2% 1,69, % 8.9% (422,234) (443,177) 99,5 $ 2.4 Far North ,253, %.2% 2,975, % 15.2% 35,94 (4,962) 87,62 281,678 $ Fort Worth 42 3,959,789 8.%.% 316,873 8.% 7.6% (14,62) (42,794) $ Las Colinas 23 18,25, %.1% 2,495, % 14.3% 114, ,839 58, $ 2.77 LBJ 13 1,995, %.5% 2,599, % 23.5% (14,746) (53,849) $ 17.8 Lewisville / Denton 187 7,874, % 1.2% 726, % 9.7% 44,51 151,669 86,981 42,737 $ Mid-Cities ,414,.1%.4% 2,295,71.5%.6% 46,83 157,834 85,977 98,441 $ North 65 3,137,26 4.8%.9% 179, % 6.9% 49,378 15,58 57,1 82,195 $ Northeast 49 3,37, %.6% 996, % 33.3% 15,468 (4,19) $ Preston Center , %.% 82,98 9.6% 11.3% 15,9 11,5 $ North US 75 Corridor 346 2,49, %.1% 3,79, % 15.5% 98, ,133 6, ,968 $ South 199 8,214, %.3% 1,139, % 14.% 11,36 4,417,92 $ 21.1 Southwest 87 2,971, %.% 391,7 13.2% 13.6%,543 6,28 35,195 $ Stemmons 1 8,144, %.7% 2,315, % 28.6% 17,296 17,34 $ Uptown / Turtle Creek 45 2,669, %.1% 226, % 8.% (13,693) 4,474 $ DFW Market 2, ,531, %.3% 22,75, % 15.4% 32,24 585,932 4,85 97,616 $ / Research & Forecast Report Q2 216 Office Colliers International

53 / Office Submarket Summary EXISTING PROPERTIES NET ABSORPTION CONSTRUCTION RENT Colliers Markets Bldgs Inventory Direct Sublease Vacant Current Prior Qtr Current Qtr New Supply Under Construction Average (FS) Class C Central Expressway ,26 1.8%.2% 18, % 4.3% 22,358 19,728 $ ,144, %.4% 283,919 9.% 9.6% 16,835 (7,986) $ East 2,698, %.% 21, % 8.6% 21,831 17,856 $ 14.9 Far North 45 1,88,83 2.3%.% 25,16 2.3% 1.9% (4,936) (3,178) $ Fort Worth 23 73, %.% 38, 5.2% 5.5% 2, 8,278 $ Las Colinas 21 1,72, %.% 113,4 1.5% 11.6% 1,891 7,111 $ 13.1 LBJ 3 625, %.% 152, % 24.8% 2,834 1,236 $ Lewisville / Denton 76 1,916, %.%, % 6.4% 2,363 (378) $ Mid-Cities 23 4,788, %.% 656, % 14.2% 21,61 1,666 $ North ,9 9.6%.% 51, % 5.% (24,69) (26,99) Northeast 39 1,3, %.% 66, % 6.5% (1,71) (4,338) $ Preston Center 15 35, %.% 62, % 17.1% (2,78) (35,993) North US 75 Corridor 11 1,976, %.% 173,47 8.8% 11.1% 45,72 57,152 $ South 143 3,2,4 8.4%.% 252,76 8.4% 8.8% 13,449 (35,23) $ Southwest 62 1,218, %.% 6,24 1.4% 11.5% 13,498 13,351 $ Stemmons 61 2,11, %.% 438, % 14.6% (144,533) (157,3) $ Uptown / Turtle Creek , %.% 28, % 5.3% (3,495) () DFW Market 1,83 27,619, %.1% 2,819,38 1.2% 1.2% (8,143) (135,94) $ 16.3 All Classes Central Expressway ,941, %.2% 1,67, %.% 63, ,9 35, $ ,28, %.7% 7,167, % 21.9% (18,684) (58,461) 342,879 $ East 3 1,18,97.8%.1% 1,33,87.9% 8.9% (4,43) (423,825) 99,5 $ Far North ,459,87.1%.4% 6,728,216.6% 13.4% 877, , ,594 5,449,626 $ Fort Worth 82 1,64, %.3% 1,213, % 1.9% (6,311) (4,4) 28,489 $ Las Colinas ,927,83 14.% 1.1% 5,76, % 14.1% (416,395) 5, , ,42 $ LBJ ,299, %.6% 5,3, % 24.2% 82,23 16,631 $ 2.98 Lewisville / Denton 269 1,266, %.9% 867, % 8.8% 48, ,559 86,981 42,737 $ Mid-Cities ,29,198.3%.6% 4,16,864.9% 13.7% 251,21 232,84 85, ,441 $ North 96 4,181, %.7% 35, % 9.% 38,97 92,872 57,1 82,195 $ Northeast 9 4,445, %.4% 1,42, % 31.7% 5,766 (16,988) $ Preston Center 56 5,396, %.4% 497, % 9.% (11,332) (69,) 186,257 $ North US 75 Corridor 56 35,534, %.2% 5,985, % 16.9% 131, , ,67 822,968 $ South ,585, %.2% 1,513, % 1.5% 98,921 31,691 91,648 33,486 $ Southwest 152 4,494,7 11.9%.% 533, %.4% 26,41 19,379 35,195 $ Stemmons ,841, 23.9%.4% 3,37, % 23.6% (15,694) (118,641) 63, $ Uptown / Turtle Creek 19 13,314, %.3% 1,148, % 8.7% 11, ,458 1,936,383 $ 38.2 DFW Market 4, ,635, %.5% 48,779, % 15.3% 532,66 1,53,8 2,483,598 1,944,558 $ 24.2 NOTE: Statistical set consists of office properties 1, and up, including owner-occupied properties; and excluding medical office and properties where the government is 1% owner and occupier. While CoStar attempts to provide the most accurate data at the end of every quarter, revisions are made throughout the year accounting for discrepancies in past reporting. Sources: CoStar Property, Colliers Research 5 / Research & Forecast Report Q2 216 Office Colliers International

54 Leasing Activity Leasing activity for the prior months ending June 3, 216 totaled 2.9 million. Year-to-date 8.5 million square feet has been leased and the average lease was 4,42 square feet. Q2 216 Top Office Lease Transactions BUILDING NAME/ADDRESS SUBMARKET TENANT LEASE DATE Cypress Waters Blvd DFW Freeport/Coppell 225, Signet Jewelers Apr Pky Quorum/Bent Tree 2, Fannie Mae May N Westridge Cir Office Ctr/West LBJ Ext 11, Molina Healthcare Jun Regent Blvd DFW Freeport/Coppell 1,52 Atos SE Jun Dominion Dr Upper Tollway/West Plano 92,25 CompuCom Systems Inc. Apr Regent Blvd DFW Freeport/Coppell 76,742 First American Title Insurance Company Jun Main St 57,634 Compass Professional Health Services /Life Accent May Bent Branch Dr DFW Freeport/Coppell 53,547 Pacific Union Financial Apr W Plano Pky Plano 52,46 Fresenius Medical Care Jun N State Highway 161 Office Ctr/West LBJ Ext 5,76 DealerSocket Apr-16 Sales Activity Investment activity picked up slightly in Q2 216 with 2 property sales over 1, square feet sold this quarter, but the average sales price dropped to $5 per square foot compared to $136 per square foot in Q The average cap rate rose slightly to 7.6%. Q2 216 Significant Sales Transactions (1, or greater) BUILDING NAME SUBMARKET RBA () YEAR BUILT BUYER SELLER SALE PRICE $/ DATE SOLD The Geico Building Far North 244, JP Realty Partners Government Employees Insurance Co. $11,, $45 6/28/216 Bluffview Towers Campbell Creek Business Park Preston Center North US 75 Corridor 296, Buchanan Street Partners CDI East $28,5, $146 5/2/ , Foundry Commercial / ICM Granite Properties $28,, $89 6/15/216 KPMG Plaza at Hall Arts 5, 215 Unknown Hall Financial Group $225,, $45 5/17/216 Westway One Las Colinas 165, Whitestone REIT Wells Real Estate Funds $21,638, $13 6/1/216 One Glen Lakes Central Expressway 17, 1981 Cawley Management, LLC Eland Energy Inc $17,5, $13 2/29/216 Las Colinas Commons Las Colinas 239, /81 David Tessel Behringer $14,362,74 $6 2/2/ Stemmons Fwy Stemmons 7, Good Signature Management Tri Tower Financial Group $4,331, $34 2/4/216 6 / Research & Forecast Report Q2 216 Office Colliers International

55 Quoted gross rental rates for existing top performing office buildings BUILDING NAME ADDRESS SUBMARKET RBA () YEAR BUILT % LEASED AVAIL. RENT ($/) OWNER +E BUILDINGS KPMG Plaza at Hall Arts 2323 Ross Ave 459, %,23 $48. +E 2323 Ross Holdings, LLC Victory Plaza West 39 Olive St Uptown/Turtle Creek 116, % 52,525 $42. +E Victory Plaza Bldgs 1919 McKinney 1919 McKinney Ave Uptown/Turtle Creek 118, % 42,674 $38. +E Ecom Real Estate Mgmt, Inc. Victory Plaza East 33 Olive St Uptown/Turtle Creek 11, 26 93% 13,784 $37. +E Estein & Associates USA Veritex Bank Plaza 8214 Westchester Dr Preston Center 96, % 6,47 $36. +E Cardinal Capital Partners, Inc. International Plaza III Pky Far North 354, % 82,924 $35. +E Lincoln Property Company NNN BUILDINGS Texas Capital Bank Building 2 McKinney Ave Uptown/Turtle Creek 447, % 2,539 $4.5 NNN Lincoln Property Company 17Seventeen McKinney 1717 McKinney Ave Uptown/Turtle Creek 361, % 25,71 $4. NNN Granite Properties, Inc. 21 McKinney 21 McKinney Ave Uptown/Turtle Creek 36, % 39,155 $4. NNN New York State Common Retirement Fund The Star 1 Cowboys Way Far North 397, % 36,552 $37. NNN City of Frisco Rosewood Court 211 Cedar Springs Rd Uptown/Turtle Creek 45, % 54,18 $36.5 NNN Rosewood Property Company Frost Tower 295 N Harwood St Uptown/Turtle Creek 167, % 9,75 $36. NNN Harwood International Q2 216 HIGHLIGHTS TOTAL OFFICE INVENTORY 14.5M 317.6M 149.5M 27.6M TOTAL INVENTORY BY CLASS CLASS A: 44% CLASS B: 47% CLASS C: 9% TOTAL: 1.9M SUBMARKET FAR NORTH DALLAS UPTOWN/TURTLE CREEK LAS COLINAS NORTH US 75 CORRIDOR SOUTH FORT WORTH 5.5M 1.9M 976K 823K 33K UNDER CONSTRUCTION 4.% ANNUALLY CURRENT 15.4% 533K NET ABSORPTION MULTI-TENANT OFFICE BUILDINGS BY SIZE 25K-5K 5K-1K 1K-25K 25K-5K 5K-1M 1 MILLION+ NUMBER OF BUILDINGS TOTAL SQUARE FEET M 15.4% M 19.8% M 19.1% M 19.1% M 22.3% M 25.2% 7 / Research & Forecast Report Q2 216 Office Colliers International