CoStar Office Report - WordPress.com Office Market D CoStar Office Statistics ©2017 CoStar Group, Inc. Houston – First Quarter 2017 First Quarter 2017 – Houston Houston Office

Houston Office MarketF i r s t Q u a r t e r 2 0 1 7

CoStar Office Statistics

Houston Office Market

©2017 CoStar Group, Inc. CoStar Office Statistics A

First Quarter 2017 – Houston

Table of ContentsTable of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AMethodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BTerms & Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CMarket Highlights & Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1CoStar Markets & Submarkets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Inventory & Development Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Inventory & Development AnalysisSelect Top DeliveriesSelect Top Under Construction Properties

Figures at a Glance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Figures at a Glance by Class & MarketFigures at a Glance by Class & SubmarketFigures at a Glance Grouped by CBD vs SuburbanHistorical Figures at a Glance

Leasing Activity Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Select Top Lease Transactions

Sales Activity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Sales Activity AnalysisSelect Top Sales TransactionsAustin County Market

Analysis of Individual CoStar Submarket Clusters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Bellaire MarketDowntown MarketE Fort Bend Co/Sugar Land MarketFM 1960 MarketGreenway Plaza MarketGulf Freeway/Pasadena MarketI-10 East MarketKaty Freeway MarketKaty/Grand Parkway West MarketKingwood/Humble MarketNASA/Clear Lake MarketNorth Belt MarketNortheast Near MarketNorthwest MarketRichmond/Fountainview MarketSan Felipe/Voss MarketSan Jacinto County MarketSouth MarketSouth Hwy 35 MarketSouth Main/Medical Center MarketSouthwest MarketWest Belt MarketWest Loop MarketWestchase MarketWoodlands Market


B CoStar Office Statistics ©2017 CoStar Group, Inc.

Houston – First Quarter 2017


©2017 CoStar Group, Inc. CoStar Office Statistics C


MethodologyThe CoStar Office Statistics, unless specifically stated otherwise, calculates office statistics using CoStar Group’s entire database of existing and under construction office buildings in each metropolitan area. Included are office, office condominium, office loft, office medical, all classes and all sizes, and both multi-tenant and single-tenant buildings, including owner-occupied buildings. CoStar Group's global database includes approximately 95.6 billion square feet of coverage in 4.4 million properties. All rental rates reported in the CoStar Office Report have been converted to a Full Service equivalent rental rate.

© Copyright 2017 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of the information contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness or completeness of the information. The publication is provided ‘as is’ and CoStar expressly disclaims any guarantees, representations or warranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

CoStar Group, Inc.

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B CoStar Office Statistics ©2017 CoStar Group, Inc.



©2017 CoStar Group, Inc. CoStar Office Statistics C


Terms & DefinitionsAvailability Rate: The ratio of available space to total rentable space, calculated by dividing the total available square feet by the total rentable square feet.Available Space: The total amount of space that is currently being marketed as available for lease in a given time period. It includes any space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date. Build-to-Suit: A term describing a particular property, developed specifically for a certain tenant to occupy, with structural features, systems, or improvement work designed specifically for the needs of that tenant. A build-to-suit can be leased or owned by the tenant. In a leased build-to-suit, a tenant will usually have a long term lease on the space.Buyer: The individual, group, company, or entity that has purchased a commercial real estate asset.Cap Rate: Short for capitalization rate. The Cap Rate is a calculation that reflects the relationship between one year’s net operating income and the current market value of a particular property. The Cap Rate is calculated by dividing the annual net operating income by the sales price (or asking sales price).CBD: Abbreviation for Central Business District. (See also: Central Business District)Central Business District: The designations of Central Business District (CBD) and Suburban refer to a particular geographic area within a metropolitan statistical area (MSA) describing the level of real estate development found there. The CBD is characterized by a high density, well organized core within the largest city of a given MSA.Class A: A classification used to describe buildings that generally qualify as extremely desirable investment-grade properties and com-mand the highest rents or sale prices compared to other buildings in the same market. Such buildings are well located and provide efficient tenant layouts as well as high quality, and in some buildings, one-of-a-kind floor plans. They can be an architectural or historical landmark designed by prominent architects. These buildings contain a modern mechanical system, and have above-average maintenance and management as well as the best quality materials and workmanship in their trim and interior fittings. They are generally the most attractive and eagerly sought by investors willing to pay a premium for quality.Class B: A classification used to describe buildings that generally qualify as a more speculative investment, and as such, command lower rents or sale prices compared to Class A properties. Such buildings offer utilitarian space without special attractions, and have ordinary design, if new or fairly new; good to excellent design if an older non-landmark building. These buildings typically have average to good maintenance, management and tenants. They are less appealing to tenants than Class A properties, and may be deficient in a number of respects including floor plans, condition and facilities. They lack prestige and must depend chiefly on a lower price to attract tenants and investors.Class C: A classification used to describe buildings that generally qualify as no-frills, older buildings that offer basic space and command lower rents or sale prices compared to other buildings in the same market. Such buildings typically have below-average maintenance and management, and could have mixed or low tenant prestige, inferior elevators, and/or mechanical/electrical systems. These build-ings lack prestige and must depend chiefly on a lower price to attract tenants and investors.Construction Starts: Buildings that began construction during a specific period of time. (See also: Deliveries)Contiguous Blocks of Space: Space within a building that is, or is able to be joined together into a single contiguous space.Deliveries: Buildings that complete construction during a specified period of time. In order for space to be considered delivered, a certifi-

cate of occupancy must have been issued for the property.Delivery Date: The date a building completes construction and receives a certificate of occupancy.Developer: The company, entity or individual that transforms raw land to improved property by use of labor, capital and entrepreneurial efforts. Direct Space: Space that is being offered for lease directly from the landlord or owner of a building, as opposed to space being offered in a building by another tenant (or broker of a tenant) trying to sublet a space that has already been leased.Existing Inventory: The square footage of buildings that have received a certificate of occupancy and are able to be occupied by tenants. It does not include space in buildings that are either planned, under construction or under renovation.Flex Building: A type of building designed to be versatile, which may be used in combination with office (corporate headquarters), research and development, quasi-retail sales, and including but not limited to industrial, warehouse, and distribution uses. A typical flex building will be one or two stories with at least half of the rentable area being used as office space, have ceiling heights of 16 feet or less, and have some type of drive-in door, even though the door may be glassed in or sealed off.Full Service Rental Rate: Rental rates that include all operating expenses such as utilities, electricity, janitorial services, taxes and insur-ance.Gross Absorption: The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing Activity, which is the sum of all space leased over a certain period of time. Unless otherwise noted Gross Absorption includes direct and sublease space.Growth in Inventory: The change in size of the existing square footage in a given area over a given period of time, generally due to the construction of new buildings.Industrial Building: A type of building adapted for such uses as the assemblage, processing, and/or manufacturing of products from raw materials or fabricated parts. Additional uses include warehous-ing, distribution, and maintenance facilities. The primary purpose of the space is for storing, producing, assembling, or distributing product.Landlord Rep: (Landlord Representative) In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the owner/landlord is referred to as the Landlord Rep.Leased Space: All the space that has a financial lease obligation. It includes all leased space, regardless of whether the space is currently occupied by a tenant. Leased space also includes space being offered for sublease.Leasing Activity: The volume of square footage that is commit-ted to and signed under a lease obligation for a specific building or market in a given period of time. It includes direct leases, subleases and renewals of existing leases. It also includes any pre-leasing activity in planned, under construction, or under renovation buildings.Market: Geographic boundaries that serve to delineate core areas that are competitive with each other and constitute a generally accepted primary competitive set of areas. Markets are building-type specific, and are non-overlapping contiguous geographic designations having a cumulative sum that matches the boundaries of the entire Region (See also: Region). Markets can be further subdivided into Submarkets. (See also: Submarkets)Multi-Tenant: Buildings that house more than one tenant at a given time. Usually, multi-tenant buildings were designed and built to accommodate many different floor plans and designs for different


D CoStar Office Statistics ©2017 CoStar Group, Inc.

Houston – First Quarter 2017 First Quarter 2017 – Houston


©2017 CoStar Group, Inc. CoStar Office Statistics 1

tenant needs. (See also: Tenancy).Net Absorption: The net change in occupied space over a given period of time. Unless otherwise noted Net Absorption includes direct and sublease space.Net Rental Rate: A rental rate that excludes certain expenses that a tenant could incur in occupying office space. Such expenses are expected to be paid directly by the tenant and may include janitorial costs, electricity, utilities, taxes, insurance and other related costs.New Space: Sometimes called first generation space, refers to space that has never been occupied and/or leased by a tenant.Occupied Space: Space that is physically occupied by a tenant. It does not include leased space that is not currently occupied by a tenant.Office Building: A type of commercial building used exclusively or primarily for office use (business), as opposed to manufacturing, warehousing, or other uses. Office buildings may sometimes have other associated uses within part of the building, i.e., retail sales, finan-cial, or restaurant, usually on the ground floor.Owner: The company, entity, or individual that holds title on a given building or property.Planned/Proposed: The status of a building that has been announced for future development but not yet started construction.Preleased Space: The amount of space in a building that has been leased prior to its construction completion date, or certificate of occupancy date.Price/SF: Calculated by dividing the price of a building (either sales price or asking sales price) by the Rentable Building Area (RBA).Property Manager: The company and/or person responsible for the day-to-day operations of a building, such as cleaning, trash removal, etc. The property manager also makes sure that the various systems within the building, such as the elevators, HVAC, and electrical systems, are functioning properly.Quoted Rental Rate: The asking rate per square foot for a par-ticular building or unit of space by a broker or property owner. Quoted rental rates may differ from the actual rates paid by tenants following the negotiation of all terms and conditions in a specific lease. RBA: Abbreviation for Rentable Building Area. (See also: Rentable Building Area)Region: Core areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Regions are further divided into market areas, called Markets. (See also: Markets)Relet Space: Sometimes called second generation or direct space, refers to existing space that has previously been occupied by another tenant.Rentable Building Area: (RBA) The total square footage of a building that can be occupied by, or assigned to a tenant for the purpose of determining a tenant’s rental obligation. Generally RBA includes a percentage of common areas including all hallways, main lobbies, bathrooms, and telephone closets.Rental Rates: The annual costs of occupancy for a particular space quoted on a per square foot basis.Sales Price: The total dollar amount paid for a particular property at a particular point in time.Sales Volume: The sum of sales prices for a given group of buildings in a given time period.Seller: The individual, group, company, or entity that sells a particular commercial real estate asset.SF: Abbreviation for Square Feet.Single-Tenant: Buildings that are occupied, or intended to be occupied by a single tenant. (See also: Build-to-suit and Tenancy)

Sublease Space: Space that has been leased by a tenant and is being offered for lease back to the market by the tenant with the lease obligation. Sublease space is sometimes referred to as sublet space.Submarkets: Specific geographic boundaries that serve to delin-eate a core group of buildings that are competitive with each other and constitute a generally accepted primary competitive set, or peer group. Submarkets are building type specific (office, industrial, retail, etc.), with distinct boundaries dependent on different factors relevant to each building type. Submarkets are non-overlapping, contiguous geographic designations having a cumulative sum that matches the boundaries of the Market they are located within (See also: Market).Suburban: The Suburban and Central Business District (CBD) des-ignations refer to a particular geographic area within a metropolitan statistical area (MSA). Suburban is defined as including all office inven-tory not located in the CBD. (See also: CBD)Tenancy: A term used to indicate whether or not a building is occu-pied by multiple tenants (See also: Multi-tenant) or a single tenant. (See also: Single-tenant)Tenant Rep: Tenant Rep stands for Tenant Representative. In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the tenant is referred to as a Tenant Rep.Time On Market: A measure of how long a currently available space has been marketed for lease, regardless of whether it is vacant or occupied.Under Construction: Buildings in a state of construction, up until they receive their certificate of occupancy. In order for CoStar to consider a building under construction, the site must have a concrete foundation in place. Abbreviated UC.Vacancy Rate: A measurement expressed as a percentage of the total amount of physically vacant space divided by the total amount of existing inventory. Under construction space generally is not included in vacancy calculations.Vacant Space: Space that is not currently occupied by a tenant, regardless of any lease obligation that may be on the space. Vacant space could be space that is either available or not available. For example, sublease space that is currently being paid for by a tenant but not occupied by that tenant, would be considered vacant space. Likewise, space that has been leased but not yet occupied because of finish work being done, would also be considered vacant space. Weighted Average Rental Rate: Rental rates that are cal-culated by factoring in, or weighting, the square footage associated with each particular rental rate. This has the effect of causing rental rates on larger spaces to affect the average more than that of smaller spaces. The weighted average rental rate is calculated by taking the ratio of the square footage associated with the rental rate on each individual available space to the square footage associated with rental rates on all available spaces, multiplying the rental rate by that ratio, and then adding together all the resulting numbers. Unless specifically specified otherwise, rental rate averages include both Direct and Sublet available spaces.Year Built: The year in which a building completed construction and was issued a certificate of occupancy.YTD: Abbreviation for Year-to-Date. Describes statistics that are cumulative from the beginning of a calendar year through whatever time period is being studied.


D CoStar Office Statistics ©2017 CoStar Group, Inc.

Houston – First Quarter 2017 First Quarter 2017 – Houston



Overview

Houston’s Vacancy Increases to 15.8% Net Absorption Negative (751,841) SF in the Quarter

The Houston Office market ended the first quarter 2017 with a vacancy rate of 15.8%. The vacancy rate was up over the previous quarter, with net absorption totaling

negative (751,841) square feet in the first quarter. Vacant sublease space decreased in the quarter, ending the quarter at 4,916,344 square feet. Rental rates ended the first quarter at $27.56, an increase over the previous quarter. A total of 19 buildings delivered to the market in the quarter totaling 1,921,321 square feet, with 2,288,834 square feet still under construction at the end of the quarter.

AbsorptionNet absorption for the overall Houston office market was

negative (751,841) square feet in the first quarter 2017. That compares to negative (866,023) square feet in the fourth quarter 2016, positive 94,563 square feet in the third quarter 2016, and positive 87,078 square feet in the second quarter 2016.

Tenants moving out of large blocks of space in 2017 include: Freeport-McMoRan Oil & Gas Inc. moving out of 190,153 square feet at 717 Texas; KBR Inc. moving out of 182,518 square feet at Eldridge Oaks Phase 1; and IHI E&C moving out of 158,317 square feet at West Memorial Place Phase II.

Tenants moving into large blocks of space in 2017 include: BASF moving into 109,578 square feet at Energy Tower IV; Insperity moving into 100,000 square feet at Insperity Centre 4; and CEMEX USA moving into 80,000 square feet at Memorial City.

The Class-A office market recorded net absorption of negative (175,713) square feet in the first quarter 2017, com-

pared to negative (542,622) square feet in the fourth quarter 2016, positive 413,131 in the third quarter 2016, and negative (180,322) in the second quarter 2016.

The Class-B office market recorded net absorption of negative (527,789) square feet in the first quarter 2017, com-pared to negative (225,467) square feet in the fourth quarter 2016, negative (336,788) in the third quarter 2016, and positive 159,225 in the second quarter 2016.

The Class-C office market recorded net absorption of negative (48,339) square feet in the first quarter 2017 com-pared to negative (97,934) square feet in the fourth quarter 2016, positive 18,220 in the third quarter 2016, and positive 108,175 in the second quarter 2016.

Net absorption for Houston’s central business district was negative (637,025) square feet in the first quarter 2017. That compares to positive 32,581 square feet in the fourth quarter 2016, negative (233,863) in the third quarter 2016, and positive 156,164 in the second quarter 2016.

Net absorption for the suburban markets was negative (114,816) square feet in the first quarter 2017. That compares to negative (898,604) square feet in fourth quarter 2016, positive 328,426 in the third quarter 2016, and negative (69,086) in the second quarter 2016.

VacancyThe office vacancy rate in the Houston market area

increased to 15.8% at the end of the first quarter 2017. The vacancy rate was 15.0% at the end of the fourth quarter 2016, 14.7% at the end of the third quarter 2016, and 14.3% at the end of the second quarter 2016.

Vacancy Rates by Class 1999-2017

Source: CoStar Property®

Absorption & Deliveries U.S. Vacancy ComparisonPast 7 Quarters Past 7 Quarters

Source: CoStar Property® Source: CoStar Property®

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Houston United States

2 CoStar Office Statistics ©2017 CoStar Group, Inc.

Houston � First Quarter 2017

Houston Office MarketFirst Quarter 2017 – Houston



Overview

Class-A projects reported a vacancy rate of 18.7% at the end of the first quarter 2017, 17.6% at the end of the fourth quarter 2016, 17.2% at the end of the third quarter 2016, and 16.6% at the end of the second quarter 2016.

Class-B projects reported a vacancy rate of 15.3% at the end of the first quarter 2017, 14.7% at the end of the fourth quarter 2016, 14.4% at the end of the third quarter 2016, and 14.0% at the end of the second quarter 2016.

Class-C projects reported a vacancy rate of 7.0% at the end of the first quarter 2017, 7.0% at the end of fourth quarter 2016, 6.7% at the end of the third quarter 2016, and 6.8% at the end of the second quarter 2016.

The overall vacancy rate in Houston’s central business dis-trict at the end of the first quarter 2017 increased to 17.0%. The vacancy rate was 13.9% at the end of the fourth quarter 2016, 14.0% at the end of the third quarter 2016, and 13.4% at the end of the second quarter 2016.

The vacancy rate in the suburban markets increased to 15.6% in the first quarter 2017. The vacancy rate was 15.2% at the end of the fourth quarter 2016, 14.8% at the end of the third quarter 2016, and 14.4% at the end of the second quarter 2016.

Largest Lease SigningsThe largest lease signings occurring in 2017 included: the

378,000-square-foot lease signed by HP at Springwoods Village in the Woodlands market; the 127,734-square-foot lease signed by Targa Resources Corp. at 811 Louisiana St in the Downtown market, and the 54,215-square-foot deal signed by Crestwood Partners at BG Group Place in the Downtown market.

Sublease VacancyThe amount of vacant sublease space in the Houston

market decreased to 4,916,344 square feet by the end of the first quarter 2017, from 5,017,951 square feet at the end of the fourth quarter 2016. There was 4,892,431 square feet vacant

at the end of the third quarter 2016 and 4,479,106 square feet at the end of the second quarter 2016.

Houston’s Class-A projects reported vacant sublease space of 4,191,975 square feet at the end of first quarter 2017, up from the 3,999,318 square feet reported at the end of the fourth quarter 2016. There were 3,710,826 square feet of sub-lease space vacant at the end of the third quarter 2016, and 3,255,095 square feet at the end of the second quarter 2016.

Class-B projects reported vacant sublease space of 710,181 square feet at the end of the first quarter 2017, down from the 1,012,613 square feet reported at the end of the fourth quarter 2016. At the end of the third quarter 2016 there were 1,168,199 square feet, and at the end of the second quarter 2016 there were 1,210,170 square feet vacant.

Class-C projects reported increased vacant sublease space from the fourth quarter 2016 to the first quarter 2017. Sublease vacancy went from 6,020 square feet to 14,188 square feet during that time. There was 13,406 square feet at the end of the third quarter 2016, and 13,841 square feet at the end of the second quarter 2016.

Sublease vacancy in Houston’s central business district stood at 817,471 square feet at the end of the first quarter 2017. It was 970,254 square feet at the end of the fourth quar-ter 2016, 1,039,178 square feet at the end of the third quarter 2016, and 889,550 square feet at the end of the second quarter 2016.

Sublease vacancy in the suburban markets ended the first quarter 2017 at 4,098,873 square feet. At the end of the fourth quarter 2016 sublease vacancy was 4,047,697 square feet, was 3,853,253 square feet at the end of the third quarter 2016, and was 3,589,556 square feet at the end of the second quarter 2016.

Rental RatesThe average quoted asking rental rate for available office

space, all classes, was $27.56 per square foot per year at the end of the first quarter 2017 in the Houston market area. This represented a 0.2% increase in quoted rental rates from the end of the fourth quarter 2016, when rents were reported at $27.50 per square foot.

The average quoted rate within the Class-A sector was $33.14 at the end of the first quarter 2017, while Class-B rates stood at $21.54, and Class-C rates at $17.97. At the end of the fourth quarter 2016, Class-A rates were $33.25 per square foot, Class-B rates were $21.61, and Class-C rates were $17.82.

The average quoted asking rental rate in Houston’s CBD was $40.52 at the end of the first quarter 2017, and $25.45 in the suburban markets. In the fourth quarter 2016, quoted rates were $39.66 in the CBD and $25.54 in the suburbs.

Deliveries and ConstructionDuring the first quarter 2017, 19 buildings totaling 1,921,321





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Overview

square feet were completed in the Houston market area. This compares to 12 buildings totaling 94,214 square feet that were completed in the fourth quarter 2016, 20 buildings totaling 1,692,912 square feet completed in the third quarter 2016, and 2,492,035 square feet in 18 buildings completed in the second quarter 2016.

There were 2,288,834 square feet of office space under construction at the end of the first quarter 2017.

Some of the notable 2017 deliveries include: 609 Main at Texas, a 1,056,658-square-foot facility that delivered in first quarter 2017 and is now 49% occupied, and Amegy Bank Tower, a 380,000-square-foot building that delivered in first quarter 2017 and is now 90% occupied.

The largest projects underway at the end of first quarter 2017 were CityPlace 2, a 326,800-square-foot building with 94% of its space pre-leased, and 3200 Kirby Drive, a 188,547-square-foot facility that is 0% pre-leased.

InventoryTotal office inventory in the Houston market area

amounted to 305,337,297 square feet in 7,183 buildings as of the end of the first quarter 2017. The Class-A office sector consisted of 141,608,892 square feet in 474 projects. There were 3,041 Class-B buildings totaling 124,931,992 square feet, and the Class-C sector consisted of 38,796,413 square feet in 3,668 buildings. Within the Office market there were 590 owner-occupied buildings accounting for 45,122,695 square feet of office space.

Sales ActivityTallying office building sales of 15,000 square feet or larg-

er, Houston office sales figures fell during the fourth quarter 2016 in terms of dollar volume compared to the third quarter of 2016.

In the fourth quarter, five office transactions closed with a total volume of $87,160,000. The five buildings totaled 536,192 square feet and the average price per square foot equated to $162.55 per square foot. That compares to five transac-

tions totaling $186,625,000 in the third quarter 2016. The total square footage in the third quarter was 734,627 square feet for an average price per square foot of $254.04.

Total office building sales activity in 2016 was down com-pared to 2015. In the twelve months of 2016, the market saw 18 office sales transactions with a total volume of $362,250,000. The price per square foot averaged $183.57. In the same twelve months of 2015, the market posted 39 transactions with a total volume of $1,908,537,489. The price per square foot averaged $255.41.

Cap rates have been lower in 2016, averaging 5.98% com-pared to the same period in 2015 when they averaged 7.08%.

One of the largest transactions that has occurred within the last four quarters in the Houston market is the sale of The Offices at Greenhouse in Houston. This 203,149-square-foot office building sold for $47,000,000, or $231.36 per square foot. The property sold on 11/14/2016, at a 5.5% cap rate.”

Reports compiled by: CJ Dyson, CoStar Research Manager





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CoStar Submarket Clusters & SubmarketsIn analyzing metropolitan areas, CoStar has developed geographic designations to help group properties together, called Markets, Submarket Clusters and Submarkets. Markets are the equivalent of metropolitan areas, or areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Markets are then divided into Submarket Clusters, which are core areas within a metropolitan area that are known to be competitive with each other in terms of attracting and keeping tenants. Markets are then further subdivided into smaller units called Submarkets, which serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted competitive set, or peer group.

Markets

Submarket Clusters Submarkets

Austin County Austin County

Bellaire Bellaire

Downtown CBD* Midtown

E Fort Bend Co/Sugar Land E Fort Bend Co/Sugar Land

FM 1960 FM 1960/Champions FM 1960/Hwy 249 FM 1960/I-45 North

Greenway Plaza Greenway Plaza

Gulf Freeway/Pasadena Gulf Freeway/Pasadena

I-10 East I-10 East

Katy Freeway Katy Freeway East Katy Freeway West

Katy/Grand Parkway West Katy/Grand Parkway West

Kingwood/Humble Kingwood/Humble

NASA/Clear Lake NASA/Clear Lake

North Belt Greenspoint/IAH Greenspoint/N Belt West

Northeast Near Northeast Near

Northwest North Loop West Northwest Far Northwest Near

Richmond/Fountainview Richmond/Fountainview

San Felipe/Voss San Felipe/Voss

San Jacinto County San Jacinto County

South South

South Hwy 35 South Hwy 35

South Main/Medical Center South Main/Medical Center

Southwest Southwest Beltway 8 Southwest/Hillcroft

West Belt West Belt

West Loop Galleria/Uptown Post Oak Park Riverway

Westchase Westchase

Woodlands Woodlands

* Submarkets comprising the CBD. For statistics reference the CBD vs Suburban Figures at a Glance Page.






Historical Deliveries 1982 - 2017

Source: CoStar Property® * Future deliveries based on current under construction buildings.

Construction Activity Markets Ranked by Under Construction Square Footage

# Bldgs Preleased SF Preleased % All Existing U/C

Woodlands 2 308,912 61.9% 36,262 249,398

South 3 250,000 77.2% 12,465 107,909

Katy/Grand Parkway West 6 16,398 6.4% 15,556 42,623

E Fort Bend Co/Sugar Land 4 18,636 8.1% 25,772 57,650

Greenway Plaza 2 4,346 2.3% 47,680 96,446

Westchase 1 145,869 78.0% 136,701 187,011

Katy Freeway 3 58,940 43.3% 78,704 45,418

West Loop 1 0 0.0% 187,624 104,579

Northeast Near 1 52,700 62.0% 16,108 85,000

Gulf Freeway/Pasadena 1 82,800 100.0% 12,561 82,800

All Other 18 137,200 71.7% 41,375 10,635

Totals 42 1,075,801 47.0% 42,508 54,496


Recent Deliveries Future Deliveries Leased & Un-Leased SF in Deliveries Since 2013 Preleased & Un-Leased SF in Properties Scheduled to Deliver


82,800

187,011

136,255

104,579

85,000

323,728

255,738

230,599

192,893

191,435

2,288,834

Market

Under Construction Inventory Average Bldg Size

Total RBA

498,796

24.925.4

13.4

6.0

4.2

1.1 1.6 1.4 1.60.7

1.8 1.4 1.2 0.6 0.4 0.9

4.23.4

4.6

2.6

5.14.1

2.0

5.14.3 4.8

7.9 7.5

0.9

2.8 2.2

4.2

9.4

12.4

6.0

3.7

0.0

5.0

10.0

15.0

20.0

25.0

30.0

1982 1986 1990 1994 1998 2002 2006 2010 2014

Millions

of

SF

Deliveries Average Delivered SF

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2013 2015 2017

Millions

of

SF

Leased Un-Leased

0

100

200

300

400

500

600

700

800

900

2017 2q 2017 4q

T

Tho

usa

nds

of

SF

Preleased Un-Leased

Inventory & development






Historical Construction Starts & DeliveriesSquare Footage Per Quarter Starting and Completing Construction


Recent Deliveries by Project Size Breakdown of Year-to-Date Development Based on RBA of Project

Building Size # Bldgs RBA SF Leased % Leased Avg Rate Single-Tenant Multi-Tenant

< 50,000 SF 15 146,490 61,032 41.7% $27.10 9,381 137,109

50,000 SF - 99,999 SF 0 0 0 0.0% $0.00 0 0

100,000 SF - 249,999 SF 2 338,173 185,742 54.9% $0.00 0 338,173

250,000 SF - 499,999 SF 1 380,000 342,000 90.0% $40.50 0 380,000

>= 500,000 SF 1 1,056,658 517,762 49.0% $53.11 0 1,056,658


Recent Development by Tenancy Existing Inventory ComparisonBased on RBA Developed for Single & Multi Tenant Use Based on Total RBA

2017 Deliveries


Currently Under Construction By Class By Space Type

6.33

3.91

1.321.62 1.48

0.37 0.33

0.780.47 0.56

0.72

0.070.43

2.70

1.74 1.67

3.21

4.31

3.24

1.03

3.74

1.71

2.49

1.69

0.09

1.92

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2014 1q 2015 1q 2016 1q 2017 1q

Millions

of

SF

Construction Starts Deliveries

82%

18%

Multi Single

100%

0%

Multi Single

13%

46%

41%

Class A Class B Class C

22%

78%

Multi Single







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Class A Market Statistics First Quarter 2017

YTD Net YTD Under Quoted

Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

Austin County 0 0 0 0 0.0% 0 0 0 $0.00 Bellaire 8 1,470,637 184,274 195,406 13.3% (1,389) 0 0 $26.93 Downtown 45 35,852,160 5,270,207 6,035,927 16.8% (441,798) 1,056,658 0 $41.97 E Fort Bend Co/Sugar Land 20 3,773,331 268,418 352,188 9.3% 1,851 0 94,200 $28.65 FM 1960 20 4,086,782 344,471 360,014 8.8% 19,979 0 0 $27.49 Greenway Plaza 20 7,267,315 1,067,466 1,079,457 14.9% 14,364 0 188,547 $36.72 Gulf Freeway/Pasadena 1 22,706 0 0 0.0% 3,122 0 0 $30.59 I-10 East 0 0 0 0 0.0% 0 0 0 $0.00 Katy Freeway 95 24,518,088 3,308,197 4,934,172 20.1% 222,593 238,173 136,255 $31.64 Katy/Grand Parkway West 23 1,917,209 581,654 581,654 30.3% (6,436) 0 171,538 $28.09 Kingwood/Humble 3 189,312 9,393 9,393 5.0% 0 0 0 $25.67 NASA/Clear Lake 17 2,122,602 163,648 214,291 10.1% (4,209) 0 0 $27.47 North Belt 25 5,551,944 2,393,509 2,840,512 51.2% 105,366 0 0 $22.87 Northeast Near 2 555,700 0 0 0.0% 0 0 85,000 $0.00 Northwest 11 2,275,066 689,221 710,428 31.2% (31,317) 0 0 $22.40 Richmond/Fountainview 0 0 0 0 0.0% 0 0 0 $0.00 San Felipe/Voss 3 1,720,793 414,360 415,360 24.1% 21,344 0 0 $36.11 San Jacinto County 0 0 0 0 0.0% 0 0 0 $0.00 South 4 393,548 46,479 46,479 11.8% 0 0 300,000 $28.23 South Hwy 35 0 0 0 0 0.0% 0 0 0 $0.00 South Main/Medical Center 15 4,560,992 299,840 309,203 6.8% (79,962) 0 0 $29.91 Southwest 9 2,052,051 271,433 271,433 13.2% 7,458 0 0 $18.97 West Belt 30 4,356,069 697,810 886,525 20.4% (43,019) 0 0 $27.54 West Loop 48 17,798,908 3,238,879 3,492,424 19.6% 23,032 380,000 104,579 $36.18 Westchase 33 9,817,089 1,716,849 2,383,375 24.3% (100,115) 0 187,011 $35.19 Woodlands 42 11,306,590 1,256,904 1,296,746 11.5% 113,423 0 498,796 $35.86

Totals 474 141,608,892 22,223,012 26,414,987 18.7% (175,713) 1,674,831 1,765,926 $33.14


Class B Market Statistics First Quarter 2017



Austin County 9 110,107 0 0 0.0% 630 0 0 $12.38 Bellaire 30 2,712,594 171,210 171,210 6.3% 11,289 0 0 $23.52 Downtown 191 19,722,279 3,170,719 3,250,230 16.5% (210,827) 0 0 $29.34 E Fort Bend Co/Sugar Land 256 5,042,220 459,334 479,109 9.5% (67) 28,249 136,399 $25.46 FM 1960 356 7,601,701 1,275,711 1,355,781 17.8% (22,877) 24,760 45,185 $18.01 Greenway Plaza 49 4,095,076 337,205 358,345 8.8% (39,715) 0 4,346 $26.32 Gulf Freeway/Pasadena 171 3,942,112 444,126 444,126 11.3% 3,267 0 82,800 $21.93 I-10 East 24 594,089 157,792 157,792 26.6% (8,478) 0 0 $15.59 Katy Freeway 211 12,494,810 2,190,517 2,242,377 17.9% (215,606) 0 0 $22.00 Katy/Grand Parkway West 251 3,101,500 135,724 136,064 4.4% 47,370 43,986 84,200 $27.56 Kingwood/Humble 86 2,174,826 133,648 142,378 6.5% 102,176 100,000 44,450 $21.98 NASA/Clear Lake 222 6,006,181 1,175,246 1,177,256 19.6% (53,859) 0 26,800 $18.50 North Belt 73 6,460,102 1,861,949 2,053,616 31.8% (33,161) 0 0 $16.72 Northeast Near 31 728,535 76,350 76,350 10.5% 40,606 0 0 $19.90 Northwest 155 7,025,304 992,054 999,670 14.2% (48,736) 3,600 15,000 $19.52 Richmond/Fountainview 27 966,080 240,307 240,307 24.9% (14,673) 0 0 $17.54 San Felipe/Voss 37 3,548,819 483,002 488,121 13.8% (32,121) 0 0 $23.75 San Jacinto County 1 27,261 0 0 0.0% 0 0 0 $0.00 South 86 1,572,845 131,943 131,943 8.4% 6,279 10,394 23,728 $26.02 South Hwy 35 35 361,719 20,365 20,365 5.6% (5,114) 0 0 $17.36 South Main/Medical Center 66 4,836,126 487,683 488,533 10.1% 41,778 0 0 $25.67 Southwest 127 7,776,260 1,239,444 1,276,098 16.4% (54,632) 0 60,000 $16.74 West Belt 54 2,174,632 342,646 445,451 20.5% (20,679) 0 0 $20.87 West Loop 58 6,262,578 693,731 713,872 11.4% 15,033 0 0 $27.18 Westchase 72 7,747,152 1,378,081 1,392,478 18.0% 1,795 10,000 0 $19.22 Woodlands 363 7,847,084 770,197 837,693 10.7% (37,467) 25,501 0 $25.80

Totals 3,041 124,931,992 18,368,984 19,079,165 15.3% (527,789) 246,490 522,908 $21.54


Existing Inventory Vacancy


Figures at a Glance






Class C Market Statistics First Quarter 2017



Austin County 24 97,869 3,318 3,318 3.4% (3,318) 0 0 $0.00 Bellaire 42 770,586 66,213 66,213 8.6% (311) 0 0 $18.23 Downtown 436 4,342,756 274,578 274,578 6.3% (4,871) 0 0 $22.16 E Fort Bend Co/Sugar Land 99 848,963 77,252 77,252 9.1% 3,037 0 0 $21.68 FM 1960 321 2,767,624 257,049 257,049 9.3% 4,551 0 0 $16.36 Greenway Plaza 201 1,511,327 107,051 107,051 7.1% (5,858) 0 0 $23.80 Gulf Freeway/Pasadena 407 3,307,860 250,542 250,542 7.6% 10,112 0 0 $17.25 I-10 East 96 591,012 122,919 122,919 20.8% (1,904) 0 0 $19.54 Katy Freeway 205 3,204,874 148,349 158,303 4.9% (9,546) 0 0 $20.75 Katy/Grand Parkway West 87 596,896 59,138 59,138 9.9% (3,823) 0 0 $19.54 Kingwood/Humble 118 932,048 85,363 85,363 9.2% 3,532 0 0 $18.32 NASA/Clear Lake 257 2,277,318 203,246 203,246 8.9% (9,037) 0 0 $18.51 North Belt 72 2,227,345 341,526 341,526 15.3% (38,529) 0 0 $13.46 Northeast Near 101 874,217 15,883 15,883 1.8% 4,092 0 0 $18.36 Northwest 326 3,015,055 155,310 158,894 5.3% (11,656) 0 0 $15.55 Richmond/Fountainview 87 1,197,348 88,822 88,822 7.4% 11,384 0 0 $16.26 San Felipe/Voss 9 72,391 0 0 0.0% 6,300 0 0 $18.24 San Jacinto County 2 11,878 0 0 0.0% 0 0 0 $0.00 South 136 850,611 68,926 68,926 8.1% 8,753 0 0 $15.21 South Hwy 35 107 420,895 29,167 29,167 6.9% 1,255 0 0 $15.44 South Main/Medical Center 145 2,843,446 40,202 40,202 1.4% (7,600) 0 0 $23.47 Southwest 157 3,108,810 151,554 151,554 4.9% 8,917 0 0 $14.90 West Belt 18 183,354 0 0 0.0% 0 0 0 $16.50 West Loop 25 517,292 21,400 21,400 4.1% 15,538 0 0 $22.88 Westchase 30 890,384 31,838 31,838 3.6% 1,945 0 0 $16.06 Woodlands 160 1,334,254 99,395 100,045 7.5% (31,302) 0 0 $22.77

Totals 3,668 38,796,413 2,699,041 2,713,229 7.0% (48,339) 0 0 $17.97


Total Office Market Statistics First Quarter 2017



Austin County 33 207,976 3,318 3,318 1.6% (2,688) 0 0 $12.38 Bellaire 80 4,953,817 421,697 432,829 8.7% 9,589 0 0 $24.56 Downtown 672 59,917,195 8,715,504 9,560,735 16.0% (657,496) 1,056,658 0 $38.67 E Fort Bend Co/Sugar Land 375 9,664,514 805,004 908,549 9.4% 4,821 28,249 230,599 $26.69 FM 1960 697 14,456,107 1,877,231 1,972,844 13.6% 1,653 24,760 45,185 $19.40 Greenway Plaza 270 12,873,718 1,511,722 1,544,853 12.0% (31,209) 0 192,893 $33.47 Gulf Freeway/Pasadena 579 7,272,678 694,668 694,668 9.6% 16,501 0 82,800 $20.36 I-10 East 120 1,185,101 280,711 280,711 23.7% (10,382) 0 0 $17.75 Katy Freeway 511 40,217,772 5,647,063 7,334,852 18.2% (2,559) 238,173 136,255 $27.62 Katy/Grand Parkway West 361 5,615,605 776,516 776,856 13.8% 37,111 43,986 255,738 $27.34 Kingwood/Humble 207 3,296,186 228,404 237,134 7.2% 105,708 100,000 44,450 $21.40 NASA/Clear Lake 496 10,406,101 1,542,140 1,594,793 15.3% (67,105) 0 26,800 $19.84 North Belt 170 14,239,391 4,596,984 5,235,654 36.8% 33,676 0 0 $20.04 Northeast Near 134 2,158,452 92,233 92,233 4.3% 44,698 0 85,000 $19.37 Northwest 492 12,315,425 1,836,585 1,868,992 15.2% (91,709) 3,600 15,000 $20.32 Richmond/Fountainview 114 2,163,428 329,129 329,129 15.2% (3,289) 0 0 $17.25 San Felipe/Voss 49 5,342,003 897,362 903,481 16.9% (4,477) 0 0 $29.63 San Jacinto County 3 39,139 0 0 0.0% 0 0 0 $0.00 South 226 2,817,004 247,348 247,348 8.8% 15,032 10,394 323,728 $23.11 South Hwy 35 142 782,614 49,532 49,532 6.3% (3,859) 0 0 $16.33 South Main/Medical Center 226 12,240,564 827,725 837,938 6.8% (45,784) 0 0 $26.89 Southwest 293 12,937,121 1,662,431 1,699,085 13.1% (38,257) 0 60,000 $17.09 West Belt 102 6,714,055 1,040,456 1,331,976 19.8% (63,698) 0 0 $25.66 West Loop 131 24,578,778 3,954,010 4,227,696 17.2% 53,603 380,000 104,579 $34.23 Westchase 135 18,454,625 3,126,768 3,807,691 20.6% (96,375) 10,000 187,011 $28.84 Woodlands 565 20,487,928 2,126,496 2,234,484 10.9% 44,654 25,501 498,796 $29.76

Totals 7,183 305,337,297 43,291,037 48,207,381 15.8% (751,841) 1,921,321 2,288,834 $27.56




Figures at a Glance






Figures at a Glance

Class A Submarket Statistics First Quarter 2017



Austin County 0 0 0 0 0.0% 0 0 0 $0.00

Bellaire 8 1,470,637 184,274 195,406 13.3% (1,389) 0 0 $26.93

CBD 37 33,366,066 4,840,936 5,581,458 16.7% (447,497) 1,056,658 0 $43.45

E Fort Bend Co/Sugar. 20 3,773,331 268,418 352,188 9.3% 1,851 0 94,200 $28.65

FM 1960/Champions 1 150,000 0 0 0.0% 0 0 0 $0.00

FM 1960/Hwy 249 17 3,730,077 315,346 330,889 8.9% 19,979 0 0 $28.06

FM 1960/I-45 North 2 206,705 29,125 29,125 14.1% 0 0 0 $23.69

Galleria/Uptown 34 13,295,227 2,262,070 2,460,614 18.5% (162,006) 0 104,579 $36.81

Greenspoint/IAH 8 1,213,677 395,914 395,914 32.6% 2,880 0 0 $20.93

Greenspoint/N Belt W. 17 4,338,267 1,997,595 2,444,598 56.3% 102,486 0 0 $23.30

Greenway Plaza 20 7,267,315 1,067,466 1,079,457 14.9% 14,364 0 188,547 $36.72

Gulf Freeway/Pasaden. 1 22,706 0 0 0.0% 3,122 0 0 $30.59

I-10 East 0 0 0 0 0.0% 0 0 0 $0.00

Katy Freeway East 24 5,761,894 707,571 787,180 13.7% 71,277 238,173 50,000 $37.80

Katy Freeway West 71 18,756,194 2,600,626 4,146,992 22.1% 151,316 0 86,255 $31.04

Katy/Grand Parkway W. 23 1,917,209 581,654 581,654 30.3% (6,436) 0 171,538 $28.09

Kingwood/Humble 3 189,312 9,393 9,393 5.0% 0 0 0 $25.67

Midtown 8 2,486,094 429,271 454,469 18.3% 5,699 0 0 $29.30

NASA/Clear Lake 17 2,122,602 163,648 214,291 10.1% (4,209) 0 0 $27.47

North Loop West 6 1,240,544 351,351 368,884 29.7% (29,202) 0 0 $25.61

Northeast Near 2 555,700 0 0 0.0% 0 0 85,000 $0.00

Northwest Far 4 797,138 337,870 341,544 42.8% (2,115) 0 0 $18.73

Northwest Near 1 237,384 0 0 0.0% 0 0 0 $0.00

Post Oak Park 9 2,617,868 761,094 790,651 30.2% 216,310 380,000 0 $36.77

Richmond/Fountainvie. 0 0 0 0 0.0% 0 0 0 $0.00

Riverway 5 1,885,813 215,715 241,159 12.8% (31,272) 0 0 $32.44

San Felipe/Voss 3 1,720,793 414,360 415,360 24.1% 21,344 0 0 $36.11

San Jacinto County 0 0 0 0 0.0% 0 0 0 $0.00

South 4 393,548 46,479 46,479 11.8% 0 0 300,000 $28.23

South Hwy 35 0 0 0 0 0.0% 0 0 0 $0.00

South Main/Medical C. 15 4,560,992 299,840 309,203 6.8% (79,962) 0 0 $29.91

Southwest Beltway 8 3 566,699 48,955 48,955 8.6% (355) 0 0 $19.55

Southwest/Hillcroft 6 1,485,352 222,478 222,478 15.0% 7,813 0 0 $18.86

West Belt 30 4,356,069 697,810 886,525 20.4% (43,019) 0 0 $27.54

Westchase 33 9,817,089 1,716,849 2,383,375 24.3% (100,115) 0 187,011 $35.19

Woodlands 42 11,306,590 1,256,904 1,296,746 11.5% 113,423 0 498,796 $35.86

Totals 474 141,608,892 22,223,012 26,414,987 18.7% (175,713) 1,674,831 1,765,926 $33.14








Figures at a Glance

Class B Submarket Statistics First Quarter 2017



Austin County 9 110,107 0 0 0.0% 630 0 0 $12.38

Bellaire 30 2,712,594 171,210 171,210 6.3% 11,289 0 0 $23.52

CBD 62 15,268,079 2,796,559 2,873,508 18.8% (187,037) 0 0 $29.70

E Fort Bend Co/Sugar. 256 5,042,220 459,334 479,109 9.5% (67) 28,249 136,399 $25.46

FM 1960/Champions 106 2,761,176 514,373 521,844 18.9% 1,828 0 36,435 $14.28

FM 1960/Hwy 249 190 3,042,011 340,496 409,701 13.5% (25,189) 24,760 8,750 $22.04

FM 1960/I-45 North 60 1,798,514 420,842 424,236 23.6% 484 0 0 $17.85

Galleria/Uptown 24 3,290,742 356,828 367,373 11.2% 875 0 0 $27.58

Greenspoint/IAH 19 1,460,917 194,687 194,687 13.3% 0 0 0 $17.09

Greenspoint/N Belt W. 54 4,999,185 1,667,262 1,858,929 37.2% (33,161) 0 0 $16.68

Greenway Plaza 49 4,095,076 337,205 358,345 8.8% (39,715) 0 4,346 $26.32

Gulf Freeway/Pasaden. 171 3,942,112 444,126 444,126 11.3% 3,267 0 82,800 $21.93

I-10 East 24 594,089 157,792 157,792 26.6% (8,478) 0 0 $15.59

Katy Freeway East 81 3,666,365 309,845 333,383 9.1% 1,458 0 0 $20.10

Katy Freeway West 130 8,828,445 1,880,672 1,908,994 21.6% (217,064) 0 0 $22.51

Katy/Grand Parkway W. 251 3,101,500 135,724 136,064 4.4% 47,370 43,986 84,200 $27.56

Kingwood/Humble 86 2,174,826 133,648 142,378 6.5% 102,176 100,000 44,450 $21.98

Midtown 129 4,454,200 374,160 376,722 8.5% (23,790) 0 0 $28.30

NASA/Clear Lake 222 6,006,181 1,175,246 1,177,256 19.6% (53,859) 0 26,800 $18.50

North Loop West 92 3,365,963 470,567 476,356 14.2% (39,098) 3,600 15,000 $22.86

Northeast Near 31 728,535 76,350 76,350 10.5% 40,606 0 0 $19.90

Northwest Far 42 2,611,784 471,698 473,525 18.1% (2,669) 0 0 $16.45

Northwest Near 21 1,047,557 49,789 49,789 4.8% (6,969) 0 0 $17.98

Post Oak Park 20 1,932,447 172,873 175,400 9.1% 27,456 0 0 $27.12

Richmond/Fountainvie. 27 966,080 240,307 240,307 24.9% (14,673) 0 0 $17.54

Riverway 14 1,039,389 164,030 171,099 16.5% (13,298) 0 0 $26.40

San Felipe/Voss 37 3,548,819 483,002 488,121 13.8% (32,121) 0 0 $23.75

San Jacinto County 1 27,261 0 0 0.0% 0 0 0 $0.00

South 86 1,572,845 131,943 131,943 8.4% 6,279 10,394 23,728 $26.02

South Hwy 35 35 361,719 20,365 20,365 5.6% (5,114) 0 0 $17.36

South Main/Medical C. 66 4,836,126 487,683 488,533 10.1% 41,778 0 0 $25.67

Southwest Beltway 8 97 5,759,034 917,840 952,994 16.5% (65,143) 0 60,000 $17.71


West Belt 54 2,174,632 342,646 445,451 20.5% (20,679) 0 0 $20.87

Westchase 72 7,747,152 1,378,081 1,392,478 18.0% 1,795 10,000 0 $19.22

Woodlands 363 7,847,084 770,197 837,693 10.7% (37,467) 25,501 0 $25.80

Totals 3,041 124,931,992 18,368,984 19,079,165 15.3% (527,789) 246,490 522,908 $21.54








Figures at a Glance

Class C Submarket Statistics First Quarter 2017



Austin County 24 97,869 3,318 3,318 3.4% (3,318) 0 0 $0.00

Bellaire 42 770,586 66,213 66,213 8.6% (311) 0 0 $18.23

CBD 62 1,795,434 112,505 112,505 6.3% (2,491) 0 0 $19.36

E Fort Bend Co/Sugar. 99 848,963 77,252 77,252 9.1% 3,037 0 0 $21.68

FM 1960/Champions 126 1,237,443 122,489 122,489 9.9% 4,151 0 0 $14.93

FM 1960/Hwy 249 156 1,049,666 55,951 55,951 5.3% (2,185) 0 0 $16.03

FM 1960/I-45 North 39 480,515 78,609 78,609 16.4% 2,585 0 0 $19.03

Galleria/Uptown 7 132,598 0 0 0.0% 0 0 0 $0.00

Greenspoint/IAH 26 695,534 8,355 8,355 1.2% 0 0 0 $13.00

Greenspoint/N Belt W. 46 1,531,811 333,171 333,171 21.8% (38,529) 0 0 $13.50

Greenway Plaza 201 1,511,327 107,051 107,051 7.1% (5,858) 0 0 $23.80

Gulf Freeway/Pasaden. 407 3,307,860 250,542 250,542 7.6% 10,112 0 0 $17.25

I-10 East 96 591,012 122,919 122,919 20.8% (1,904) 0 0 $19.54

Katy Freeway East 153 2,445,783 113,166 117,138 4.8% (7,428) 0 0 $21.34

Katy Freeway West 52 759,091 35,183 41,165 5.4% (2,118) 0 0 $18.70

Katy/Grand Parkway W. 87 596,896 59,138 59,138 9.9% (3,823) 0 0 $19.54

Kingwood/Humble 118 932,048 85,363 85,363 9.2% 3,532 0 0 $18.32

Midtown 374 2,547,322 162,073 162,073 6.4% (2,380) 0 0 $24.27

NASA/Clear Lake 257 2,277,318 203,246 203,246 8.9% (9,037) 0 0 $18.51

North Loop West 213 1,448,719 69,781 70,569 4.9% (15,912) 0 0 $20.19

Northeast Near 101 874,217 15,883 15,883 1.8% 4,092 0 0 $18.36

Northwest Far 81 953,043 20,738 23,534 2.5% 329 0 0 $11.59

Northwest Near 32 613,293 64,791 64,791 10.6% 3,927 0 0 $13.97

Post Oak Park 14 225,329 0 0 0.0% 247 0 0 $24.24

Richmond/Fountainvie. 87 1,197,348 88,822 88,822 7.4% 11,384 0 0 $16.26

Riverway 4 159,365 21,400 21,400 13.4% 15,291 0 0 $22.86

San Felipe/Voss 9 72,391 0 0 0.0% 6,300 0 0 $18.24


South 136 850,611 68,926 68,926 8.1% 8,753 0 0 $15.21

South Hwy 35 107 420,895 29,167 29,167 6.9% 1,255 0 0 $15.44


Southwest Beltway 8 86 1,267,127 58,044 58,044 4.6% 19,001 0 0 $14.86

Southwest/Hillcroft 71 1,841,683 93,510 93,510 5.1% (10,084) 0 0 $14.93

West Belt 18 183,354 0 0 0.0% 0 0 0 $16.50

Westchase 30 890,384 31,838 31,838 3.6% 1,945 0 0 $16.06

Woodlands 160 1,334,254 99,395 100,045 7.5% (31,302) 0 0 $22.77

Totals 3,668 38,796,413 2,699,041 2,713,229 7.0% (48,339) 0 0 $17.97








Figures at a Glance

Total Office Submarket Statistics First Quarter 2017



Austin County 33 207,976 3,318 3,318 1.6% (2,688) 0 0 $12.38

Bellaire 80 4,953,817 421,697 432,829 8.7% 9,589 0 0 $24.56

CBD 161 50,429,579 7,750,000 8,567,471 17.0% (637,025) 1,056,658 0 $40.52

E Fort Bend Co/Sugar. 375 9,664,514 805,004 908,549 9.4% 4,821 28,249 230,599 $26.69

FM 1960/Champions 233 4,148,619 636,862 644,333 15.5% 5,979 0 36,435 $14.40

FM 1960/Hwy 249 363 7,821,754 711,793 796,541 10.2% (7,395) 24,760 8,750 $23.70

FM 1960/I-45 North 101 2,485,734 528,576 531,970 21.4% 3,069 0 0 $18.49

Galleria/Uptown 65 16,718,567 2,618,898 2,827,987 16.9% (161,131) 0 104,579 $35.43

Greenspoint/IAH 53 3,370,128 598,956 598,956 17.8% 2,880 0 0 $19.70

Greenspoint/N Belt W. 117 10,869,263 3,998,028 4,636,698 42.7% 30,796 0 0 $20.09

Greenway Plaza 270 12,873,718 1,511,722 1,544,853 12.0% (31,209) 0 192,893 $33.47

Gulf Freeway/Pasaden. 579 7,272,678 694,668 694,668 9.6% 16,501 0 82,800 $20.36

I-10 East 120 1,185,101 280,711 280,711 23.7% (10,382) 0 0 $17.75

Katy Freeway East 258 11,874,042 1,130,582 1,237,701 10.4% 65,307 238,173 50,000 $26.22

Katy Freeway West 253 28,343,730 4,516,481 6,097,151 21.5% (67,866) 0 86,255 $27.87

Katy/Grand Parkway W. 361 5,615,605 776,516 776,856 13.8% 37,111 43,986 255,738 $27.34

Kingwood/Humble 207 3,296,186 228,404 237,134 7.2% 105,708 100,000 44,450 $21.40

Midtown 511 9,487,616 965,504 993,264 10.5% (20,471) 0 0 $28.34

NASA/Clear Lake 496 10,406,101 1,542,140 1,594,793 15.3% (67,105) 0 26,800 $19.84

North Loop West 311 6,055,226 891,699 915,809 15.1% (84,212) 3,600 15,000 $23.89

Northeast Near 134 2,158,452 92,233 92,233 4.3% 44,698 0 85,000 $19.37

Northwest Far 127 4,361,965 830,306 838,603 19.2% (4,455) 0 0 $17.11

Northwest Near 54 1,898,234 114,580 114,580 6.0% (3,042) 0 0 $15.58

Post Oak Park 43 4,775,644 933,967 966,051 20.2% 244,013 380,000 0 $33.53

Richmond/Fountainvie. 114 2,163,428 329,129 329,129 15.2% (3,289) 0 0 $17.25

Riverway 23 3,084,567 401,145 433,658 14.1% (29,279) 0 0 $30.46

San Felipe/Voss 49 5,342,003 897,362 903,481 16.9% (4,477) 0 0 $29.63


South 226 2,817,004 247,348 247,348 8.8% 15,032 10,394 323,728 $23.11

South Hwy 35 142 782,614 49,532 49,532 6.3% (3,859) 0 0 $16.33


Southwest Beltway 8 186 7,592,860 1,024,839 1,059,993 14.0% (46,497) 0 60,000 $17.63


West Belt 102 6,714,055 1,040,456 1,331,976 19.8% (63,698) 0 0 $25.66

Westchase 135 18,454,625 3,126,768 3,807,691 20.6% (96,375) 10,000 187,011 $28.84

Woodlands 565 20,487,928 2,126,496 2,234,484 10.9% 44,654 25,501 498,796 $29.76

Totals 7,183 305,337,297 43,291,037 48,207,381 15.8% (751,841) 1,921,321 2,288,834 $27.56








Figures at a Glance

Class A Market Statistics First Quarter 2017



CBD 37 33,366,066 4,840,936 5,581,458 16.7% (447,497) 1,056,658 0 $43.45

Suburban 437 108,242,826 17,382,076 20,833,529 19.2% 271,784 618,173 1,765,926 $30.42

Totals 474 141,608,892 22,223,012 26,414,987 18.7% (175,713) 1,674,831 1,765,926 $33.14


Class B Market Statistics First Quarter 2017



CBD 62 15,268,079 2,796,559 2,873,508 18.8% (187,037) 0 0 $29.70

Suburban 2,979 109,663,913 15,572,425 16,205,657 14.8% (340,752) 246,490 522,908 $20.98

Totals 3,041 124,931,992 18,368,984 19,079,165 15.3% (527,789) 246,490 522,908 $21.54


Class C Market Statistics First Quarter 2017



CBD 62 1,795,434 112,505 112,505 6.3% (2,491) 0 0 $19.36

Suburban 3,606 37,000,979 2,586,536 2,600,724 7.0% (45,848) 0 0 $17.92

Totals 3,668 38,796,413 2,699,041 2,713,229 7.0% (48,339) 0 0 $17.97


Class A & B Market Statistics First Quarter 2017



CBD 99 48,634,145 7,637,495 8,454,966 17.4% (634,534) 1,056,658 0 $40.86

Suburban 3,416 217,906,739 32,954,501 37,039,186 17.0% (68,968) 864,663 2,288,834 $25.99

Totals 3,515 266,540,884 40,591,996 45,494,152 17.1% (703,502) 1,921,321 2,288,834 $28.18


Total Office Market Statistics First Quarter 2017



CBD 161 50,429,579 7,750,000 8,567,471 17.0% (637,025) 1,056,658 0 $40.52

Suburban 7,022 254,907,718 35,541,037 39,639,910 15.6% (114,816) 864,663 2,288,834 $25.45

Totals 7,183 305,337,297 43,291,037 48,207,381 15.8% (751,841) 1,921,321 2,288,834 $27.56












Figures at a Glance

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Historical Rental RatesBased on Full-Service Equivalent Rental Rates


Vacancy by Available Space Type Vacancy by ClassPercent of All Vacant Space in Direct vs. Sublet Percent of All Vacant Space by Class


U.S. Rental Rate Comparison Future Space AvailableBased on Full-Service Equivalent Rental Rates Space Scheduled to be Available for Occupancy*

Source: CoStar Property® * Includes Under Construction Spaces Source: CoStar Property®

Houston United States Houston United States

$0.00

$5.00

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$15.00

$20.00

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1999 1q 2001 1q 2003 1q 2005 1q 2007 1q 2009 1q 2011 1q 2013 1q 2015 1q 2017 1q

A B C Total Market

$0.00

$5.00

$10.00

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$20.00

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2015 3q 2016 3q


90%

10%

Direct Sublet

95%

5%

Direct Sublet

54%

40%6%


2.74

0.64 0.70

1.57

0.260.03

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2017 2q 2017 4q 2018 2q

13%

47%

40%


Leasing Activity






Leasing Activity


* Renewal

Building Submarket SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company

1 HP Building 1 Woodlands 189,000 1st HP CBRE JLL

2 HP Building 2 Woodlands 189,000 1st HP CBRE JLL

3 811 Louisiana St CBD 127,734 1st Targa Resources Corp. Cushman & Wake�eld Colvill O�ce Properties

4 BG Group Place CBD 54,215 1st Crestwood Partners Cushman & Wake�eld Cushman & Wake�eld

5 1401 Enclave Katy Freeway West 44,846 1st IHS, Inc. N/A JLL

6 12301 Kurland Dr* Gulf Freeway/Pasadena 42,627 1st IBM N/A Transwestern

7 609 Main at Texas CBD 35,788 1st McKinsey N/A Colvill O�ce Properties

8 Park Ten Plaza Katy Freeway West 28,808 1st RigNet Cushman & Wake�eld Stream Realty Partners, L.P.

9 Three Allen Center CBD 27,673 1st Castex Energy, Inc. N/A JLL

10 Waterway Plaza II Woodlands 25,315 1st N/A N/A Transwestern

11 One Allen Center CBD 25,289 1st N/A N/A JLL

12 Springwoods Village Medical Office Building Woodlands 25,007 1st N/A N/A CBRE

13 Museum Medical Tower South Main/Medical Center 24,762 1st N/A N/A Transwestern

14 Cobalt Center Katy Freeway East 23,652 1st N/A N/A CBRE

15 1100 Louisiana CBD 23,537 1st N/A N/A Colvill O�ce Properties

16 1801 Smith St CBD 21,605 1st Legacy Holding N/A Stream Realty Partners, L.P.

17 Bank of America Center CBD 21,290 1st Arnold & Porter Kaye Sholer N/A PM Realty Group

18 Ashford 7 Katy Freeway West 20,923 1st ConocoPhillips N/A Cushman & Wake�eld

19 Three Allen Center CBD 19,762 1st N/A JacksonCooksey Transwestern

20 811 Louisiana St CBD 19,222 1st Willis Towers Watson CBRE Colvill O�ce Properties

21 JPMorgan Chase Tower CBD 17,315 1st Paradox N/A Cushman & Wake�eld

22 Intercontinental Park II Greenspoint/N Belt West 16,765 1st N/A N/A Lincoln Property Company

23 Intercontinental Park II Greenspoint/N Belt West 16,765 1st N/A N/A Lincoln Property Company

24 Remington Square - Bldg III West Belt 16,324 1st ACU Data JLL Stream Realty Partners, L.P.

25 Southwest Corporate Center Southwest Beltway 8 16,168 1st N/A N/A Transwestern

26 Three Allen Center* CBD 16,073 1st Freeport LNG Development, L.P Savills Studley JLL

27 Atrium 2656 South Main/Medical Center 15,786 1st PSS Industrial Group N/A N/A

28 Southwest Corporate Center Southwest Beltway 8 15,141 1st N/A N/A Transwestern

29 Two Westway West Belt 13,172 1st N/A N/A JacksonCooksey

30 Town Center II Woodlands 12,772 1st N/A N/A JLL

31 Town & Country Business - Bldg 1 Katy Freeway East 12,700 1st N/A N/A Bernstein Perwien Properties

32 1910 Napoleon St Gulf Freeway/Pasadena 12,084 1st Generation ONE N/A Bejjani & Associates

33 1415 Louisiana St CBD 11,661 1st N/A N/A Cushman & Wake�eld

34 Inter�n Tower Galleria/Uptown 11,556 1st Smithco Development N/A Transwestern

35 JPMorgan Chase Tower CBD 11,363 1st N/A N/A Colvill O�ce Properties

36 Loop Central I Bellaire 11,358 1st N/A N/A Transwestern

37 Pennzoil Place - South Tower* CBD 11,315 1st Ener�ex Energy Systems Inc. Savills Studley Transwestern

38 Energy Center II Katy Freeway West 10,421 1st Schumacher Chemical N/A Colliers International

39 Three Memorial City Plaza Katy Freeway East 10,304 1st Pursuit Oil and Gas N/A MetroNational Corporation

40 One BriarLake Plaza Westchase 10,102 1st Smartbridge N/A JLL

Select Top O�ce Leases Based on Leased Square Footage For Deals Signed in 2017






Sales Activity

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

Source: CoStar COMPS®

Sales Volume & Price Sales Analysis by Building SizeBased on Office Building Sales of 15,000 SF and Larger Based on Office Building Sales From Jan. 2016 - Dec. 2016

Bldg Size # RBA $ Volume Price/SF Cap Rate

< 50,000 SF 42 432,809 $78,475,668 181.32$ 7.48%

50K-249K SF

7 804,347 $97,305,000 120.97$ 5.50%

250K-499K SF

1 302,562 $60,000,000 198.31$ -

>500K SF 1 643,000 $175,000,000 272.16$ -

Source: CoStar COMPS® Source: CoStar COMPS®

U.S. Price/SF Comparison U.S. Cap Rate ComparisonBased on Office Building Sales of 15,000 SF and Larger Based on Office Building Sales of 15,000 SF and Larger

Source: CoStar COMPS® Source: CoStar COMPS®

$60

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2013 1q 2014 1q 2015 1q 2016 1q

Dol

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Houston US

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2013 1q 2014 1q 2015 1q 2016 1q

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Price

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2014 1q 2015 1q 2016 1q

Cap R

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2013 1q 2014 1q 2015 1q 2016 1q

Cap R

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Houston US






Houston Office MarketMarket Highlights – Class “A, B & C”

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A u s t i n C o u n t y M a r k e t

Deliveries, Absorption & Vacancy Historical Analysis, All Classes


Vacant Space Quoted Rental RatesHistorical Analysis, All Classes Historical Analysis, All Classes


Net QuotedPeriod # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates

2017 1q 33 207,976 3,318 1.6% (2,688) 0 0 0 0 $12.38

2016 4q 33 207,976 630 0.3% 0 0 0 0 0 $0.00

2016 3q 33 207,976 630 0.3% 3,940 0 0 0 0 $18.10

2016 2q 33 207,976 4,570 2.2% 3,860 0 0 0 0 $18.10

2016 1q 33 207,976 8,430 4.1% 0 0 0 0 0 $18.10

2015 4q 33 207,976 8,430 4.1% (3,430) 0 0 0 0 $0.00

2015 3q 33 207,976 5,000 2.4% 0 0 0 0 0 $0.00

2015 2q 33 207,976 5,000 2.4% (600) 0 0 0 0 $0.00

2015 1q 33 207,976 4,400 2.1% 0 0 0 0 0 $0.00

2014 4q 33 207,976 4,400 2.1% 0 0 0 0 0 $0.00

2014 3q 33 207,976 4,400 2.1% 0 0 0 0 0 $0.00

2014 2q 33 207,976 4,400 2.1% 1,800 0 0 0 0 $0.00

2014 1q 33 207,976 6,200 3.0% (6,200) 0 0 0 0 $0.00

2013 4q 33 207,976 0 0.0% 0 0 0 0 0 $0.00

2013 3q 33 207,976 0 0.0% 0 0 0 0 0 $0.00

2013 2q 33 207,976 0 0.0% 3,000 0 0 0 0 $0.00


UC InventoryDelivered InventoryExisting Inventory Vacancy

(0.008)

(0.006)

(0.004)

(0.002)

0.000

0.002

0.004

0.006

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

0.0%

0.5%

1.0%

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Perce

nt V

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Delivered SF Absorption SF Vacancy

$0.00

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2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

ear

0.00

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0.01

2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF







B e l l a i r e M a r k e t






2017 1q 80 4,953,817 432,829 8.7% 9,589 0 0 0 0 $24.56

2016 4q 80 4,953,817 442,418 8.9% 24,280 0 0 0 0 $24.37

2016 3q 80 4,953,817 466,698 9.4% (109,395) 0 0 0 0 $24.58

2016 2q 80 4,953,817 357,303 7.2% 5,072 0 0 0 0 $24.38

2016 1q 80 4,953,817 362,375 7.3% (40,830) 0 0 0 0 $24.20

2015 4q 81 4,984,217 351,945 7.1% (53,199) 0 0 0 0 $24.13

2015 3q 81 4,984,217 298,746 6.0% 40,357 0 0 0 0 $25.17

2015 2q 81 4,984,217 339,103 6.8% 5,912 0 0 0 0 $24.99

2015 1q 81 4,984,217 345,015 6.9% (5,575) 0 0 0 0 $24.66

2014 4q 81 4,984,217 339,440 6.8% 11,144 0 0 0 0 $24.99

2014 3q 81 4,984,217 350,584 7.0% (2,703) 0 0 0 0 $24.10

2014 2q 81 4,984,217 347,881 7.0% 74,572 1 4,960 0 0 $24.10

2014 1q 80 4,979,257 417,493 8.4% 27,414 0 0 1 4,960 $23.98

2013 4q 80 4,979,257 444,907 8.9% 59,200 0 0 1 4,960 $22.87

2013 3q 80 4,979,257 504,107 10.1% (11,660) 0 0 1 4,960 $23.04

2013 2q 80 4,979,257 492,447 9.9% 3,053 0 0 0 0 $23.22



(0.150)

(0.100)

(0.050)

0.000

0.050

0.100

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

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Perce

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2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

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2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF







D o w n t o w n M a r k e t






2017 1q 672 59,917,195 9,560,735 16.0% (657,496) 1 1,056,658 0 0 $38.67

2016 4q 673 58,888,123 7,874,167 13.4% (5,438) 0 0 1 1,056,658 $38.02

2016 3q 674 58,903,744 7,884,350 13.4% (267,772) 2 120,800 1 1,056,658 $39.43

2016 2q 673 58,791,013 7,503,847 12.8% 180,315 0 0 3 1,177,458 $38.59

2016 1q 675 59,541,013 8,434,162 14.2% (410,899) 1 406,600 3 1,177,458 $38.98

2015 4q 676 59,196,363 7,678,613 13.0% (69,167) 0 0 3 1,578,258 $38.68

2015 3q 676 59,196,363 7,609,446 12.9% (207,027) 1 167,562 3 1,578,258 $38.13

2015 2q 675 59,028,801 7,234,857 12.3% (486,628) 0 0 4 1,745,820 $37.85

2015 1q 675 59,028,801 6,748,229 11.4% (1,004,260) 0 0 4 1,745,820 $37.63

2014 4q 675 59,028,801 5,743,969 9.7% 200,719 1 1,930 4 1,745,820 $38.37

2014 3q 676 59,376,808 6,292,695 10.6% (222,042) 1 7,500 4 1,632,750 $38.51

2014 2q 675 59,369,308 6,063,153 10.2% 697,918 1 80,000 5 1,640,250 $38.35

2014 1q 678 59,620,629 7,012,392 11.8% (224,058) 0 0 6 1,720,250 $35.53

2013 4q 680 60,038,629 7,206,334 12.0% 41,206 0 0 2 87,500 $32.31

2013 3q 680 60,038,629 7,247,540 12.1% 114,468 0 0 1 80,000 $31.94

2013 2q 680 60,038,629 7,362,008 12.3% (118,305) 0 0 1 80,000 $32.35



(1.500)

(1.000)

(0.500)

0.000

0.500

1.000

1.500

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

0.0%

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8.0%

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Perce

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$37.00

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$40.00

2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

ear

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2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF







E F o r t B e n d C o / S u g a r L a n d M a r k e t






2017 1q 375 9,664,514 908,549 9.4% 4,821 2 28,249 4 230,599 $26.69

2016 4q 373 9,636,265 885,121 9.2% 15,359 1 25,000 5 254,048 $26.38

2016 3q 372 9,611,265 875,480 9.1% (34,871) 1 15,225 5 240,449 $26.42

2016 2q 371 9,596,040 825,384 8.6% 87,390 1 40,000 2 40,225 $25.22

2016 1q 370 9,556,040 872,774 9.1% 77,646 1 4,800 3 80,225 $24.85

2015 4q 369 9,551,240 945,620 9.9% 18,983 1 5,824 3 60,025 $24.85

2015 3q 368 9,545,416 958,779 10.0% 184,361 3 139,783 3 50,624 $24.57

2015 2q 365 9,405,633 1,003,357 10.7% 134,569 3 17,472 5 150,407 $24.04

2015 1q 362 9,388,161 1,120,454 11.9% 43,729 0 0 7 163,079 $24.42

2014 4q 362 9,388,161 1,164,183 12.4% 66,662 1 56,000 6 157,255 $24.51

2014 3q 361 9,332,161 1,174,845 12.6% 14,069 4 38,385 2 59,583 $24.42

2014 2q 356 9,287,303 1,144,056 12.3% 235,742 1 160,000 7 104,441 $24.17

2014 1q 355 9,127,303 1,219,798 13.4% 41,696 3 16,584 7 260,858 $23.95

2013 4q 352 9,110,719 1,244,910 13.7% 208,080 1 18,336 10 277,442 $24.07

2013 3q 351 9,092,383 1,434,654 15.8% 75,800 0 0 8 209,305 $24.38

2013 2q 351 9,092,383 1,510,454 16.6% (22,371) 2 12,291 8 209,305 $24.11



(0.050)

0.000

0.050

0.100

0.150

0.200

0.250

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Perce

nt V

aca

nt


$23.50

$24.00

$24.50

$25.00

$25.50

$26.00

$26.50

$27.00

2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

ear

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF







F M 1 9 6 0 M a r k e t






2017 1q 697 14,456,107 1,972,844 13.6% 1,653 3 24,760 11 45,185 $19.40

2016 4q 694 14,431,347 1,949,737 13.5% (1,301) 2 5,683 13 61,195 $19.28

2016 3q 692 14,425,664 1,942,753 13.5% 51,378 2 5,548 7 52,283 $19.10

2016 2q 689 14,405,191 1,973,658 13.7% 49,080 1 20,000 8 50,916 $19.37

2016 1q 688 14,385,191 2,002,738 13.9% (8,777) 1 5,625 6 57,853 $19.25

2015 4q 687 14,379,566 1,988,336 13.8% (67,716) 0 0 5 46,098 $19.32

2015 3q 685 14,369,302 1,910,356 13.3% 70,127 0 0 2 10,264 $18.91

2015 2q 685 14,369,302 1,980,483 13.8% 451,078 1 470,623 2 10,264 $18.70

2015 1q 684 13,898,679 1,960,938 14.1% 36,704 6 22,694 3 480,887 $18.69

2014 4q 678 13,875,985 1,974,948 14.2% 90,923 2 9,134 7 493,317 $18.59

2014 3q 675 13,862,051 2,051,937 14.8% 42,836 1 31,320 6 500,457 $18.28

2014 2q 673 13,827,726 2,060,448 14.9% 29,260 1 6,000 8 534,782 $18.10

2014 1q 670 13,815,571 2,077,553 15.0% (34,887) 1 3,217 9 531,037 $18.17

2013 4q 669 13,812,354 2,039,449 14.8% 174,343 0 0 8 526,320 $18.36

2013 3q 669 13,812,354 2,213,792 16.0% 507,225 0 0 6 517,315 $18.18

2013 2q 669 13,812,354 2,721,017 19.7% 32,183 1 3,566 2 34,537 $17.95



(0.100)

0.000

0.100

0.200

0.300

0.400

0.500

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

12.0%

12.5%

13.0%

13.5%

14.0%

14.5%

15.0%

15.5%

Perce

nt V

aca

nt


$18.90

$18.95

$19.00

$19.05

$19.10

$19.15

$19.20

$19.25

$19.30

$19.35

$19.40

$19.45

2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

ear

1.70

1.75

1.80

1.85

1.90

1.95

2.00

2.05

2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF







G r e e n w a y P l a z a M a r k e t






2017 1q 270 12,873,718 1,544,853 12.0% (31,209) 0 0 2 192,893 $33.47

2016 4q 270 12,873,718 1,513,644 11.8% 119,464 0 0 2 192,893 $33.50

2016 3q 270 12,873,718 1,633,108 12.7% 52,714 1 182,000 2 192,893 $33.68

2016 2q 269 12,691,718 1,503,822 11.8% (58,362) 0 0 3 374,893 $33.99

2016 1q 269 12,691,718 1,445,460 11.4% 154,415 0 0 2 370,547 $34.21

2015 4q 271 12,809,956 1,718,113 13.4% (19,921) 2 634,480 2 370,547 $32.65

2015 3q 272 12,420,053 1,308,289 10.5% (75,704) 0 0 3 816,480 $30.60

2015 2q 273 12,435,184 1,247,716 10.0% (25,850) 0 0 3 816,480 $30.82

2015 1q 273 12,435,184 1,221,866 9.8% (176,562) 0 0 3 816,480 $31.24

2014 4q 273 12,435,184 1,045,304 8.4% 73,680 1 14,782 3 816,480 $31.80

2014 3q 273 12,442,633 1,126,433 9.1% (67,994) 0 0 3 649,262 $30.90

2014 2q 273 12,442,633 1,058,439 8.5% 85,261 0 0 3 649,262 $30.77

2014 1q 273 12,442,633 1,143,700 9.2% 36,572 0 0 3 649,262 $29.45

2013 4q 278 12,522,621 1,260,260 10.1% 29,848 0 0 1 248,275 $27.78

2013 3q 278 12,522,621 1,290,108 10.3% 10,421 0 0 0 0 $26.91

2013 2q 278 12,522,621 1,300,529 10.4% (12,431) 0 0 0 0 $26.91



(0.300)

(0.200)

(0.100)

0.000

0.100

0.200

0.300

0.400

0.500

0.600

0.700

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Perce

nt V

aca

nt


$33.00

$33.20

$33.40

$33.60

$33.80

$34.00

$34.20

$34.40

2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

ear

1.30

1.35

1.40

1.45

1.50

1.55

1.60

1.65

2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF







G u l f F r e e w a y / P a s a d e n a M a r k e t






2017 1q 579 7,272,678 694,668 9.6% 16,501 0 0 1 82,800 $20.36

2016 4q 579 7,272,678 711,169 9.8% (3,490) 1 6,000 1 82,800 $20.12

2016 3q 578 7,266,678 701,679 9.7% 128,033 2 53,105 2 88,800 $20.02

2016 2q 576 7,213,573 776,607 10.8% 30,257 2 113,570 3 59,105 $20.07

2016 1q 574 7,100,003 693,294 9.8% 58,649 3 29,234 5 172,675 $20.43

2015 4q 572 7,127,406 779,346 10.9% 37,362 0 0 7 195,909 $20.19

2015 3q 572 7,127,406 816,708 11.5% 47,571 0 0 5 158,339 $20.16

2015 2q 572 7,127,406 864,279 12.1% (1,873) 0 0 4 56,339 $19.84

2015 1q 572 7,127,406 862,406 12.1% 70,530 3 167,000 0 0 $19.99

2014 4q 569 6,960,406 765,936 11.0% (6,369) 0 0 3 167,000 $19.86

2014 3q 569 6,960,406 759,567 10.9% 157 0 0 3 167,000 $19.78

2014 2q 569 6,960,406 759,724 10.9% 145,657 1 122,526 2 89,000 $18.59

2014 1q 568 6,837,880 782,855 11.4% (31,406) 0 0 2 202,526 $18.85

2013 4q 568 6,837,880 751,449 11.0% 142,189 1 65,000 0 0 $18.40

2013 3q 567 6,772,880 828,638 12.2% (26,413) 0 0 1 65,000 $18.56

2013 2q 567 6,772,880 802,225 11.8% 35,083 0 0 1 65,000 $18.45



(0.050)

0.000

0.050

0.100

0.150

0.200

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Perce

nt V

aca

nt


$19.80

$19.90

$20.00

$20.10

$20.20

$20.30

$20.40

$20.50

2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

ear

0.60

0.62

0.64

0.66

0.68

0.70

0.72

0.74

0.76

0.78

0.80

2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF







I - 1 0 E a s t M a r k e t






2017 1q 120 1,185,101 280,711 23.7% (10,382) 0 0 0 0 $17.75

2016 4q 120 1,185,101 270,329 22.8% 5,430 0 0 0 0 $17.79

2016 3q 120 1,185,101 275,759 23.3% 6,156 0 0 0 0 $18.00

2016 2q 120 1,185,101 281,915 23.8% (3,926) 0 0 0 0 $17.93

2016 1q 120 1,185,101 277,989 23.5% 11,004 0 0 0 0 $14.40

2015 4q 120 1,185,101 288,993 24.4% (25,081) 1 8,403 0 0 $14.57

2015 3q 119 1,176,698 255,509 21.7% (66,713) 0 0 1 8,403 $14.55

2015 2q 119 1,176,698 188,796 16.0% 8,950 0 0 1 8,403 $15.28

2015 1q 119 1,176,698 197,746 16.8% 5,287 0 0 0 0 $15.36

2014 4q 119 1,176,698 203,033 17.3% 17,147 0 0 0 0 $16.31

2014 3q 118 1,175,397 218,879 18.6% (5,103) 0 0 1 1,301 $15.49

2014 2q 118 1,175,397 213,776 18.2% 7,303 0 0 1 1,301 $15.09

2014 1q 118 1,175,397 221,079 18.8% (66,097) 0 0 1 1,301 $15.12

2013 4q 118 1,175,397 154,982 13.2% (100) 0 0 0 0 $15.65

2013 3q 118 1,175,397 154,882 13.2% 2,536 0 0 0 0 $14.83

2013 2q 118 1,175,397 157,418 13.4% 2,825 0 0 0 0 $15.64



(0.080)

(0.070)

(0.060)

(0.050)

(0.040)

(0.030)

(0.020)

(0.010)

0.000

0.010

0.020

0.030

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Perce

nt V

aca

nt


$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

$18.00

$20.00

2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

ear

0.26

0.27

0.27

0.27

0.27

0.27

0.28

0.28

0.28

0.28

0.28

2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF







K a t y F r e e w a y M a r k e t






2017 1q 511 40,217,772 7,334,852 18.2% (2,559) 1 238,173 3 136,255 $27.62

2016 4q 510 39,979,599 7,094,120 17.7% (367,324) 0 0 4 374,428 $27.78

2016 3q 510 39,979,599 6,726,796 16.8% (198,023) 1 378,209 4 374,428 $27.86

2016 2q 509 39,601,390 6,150,564 15.5% (9,036) 2 607,270 4 666,382 $29.27

2016 1q 507 38,994,120 5,534,258 14.2% 141,682 0 0 4 1,223,652 $30.24

2015 4q 507 38,994,120 5,675,940 14.6% 261,120 4 1,372,521 4 1,223,652 $30.52

2015 3q 503 37,621,599 4,564,539 12.1% 351,238 2 305,807 7 2,358,000 $30.66

2015 2q 501 37,315,792 4,609,970 12.4% 44,312 4 1,197,917 9 2,663,807 $30.72

2015 1q 498 36,119,875 3,458,365 9.6% 3,744 4 1,058,277 13 3,861,724 $30.53

2014 4q 494 35,061,598 2,403,832 6.9% 857,456 4 712,268 17 4,920,001 $30.49

2014 3q 490 34,349,330 2,549,020 7.4% (59,165) 4 563,344 18 5,076,075 $29.92

2014 2q 486 33,785,986 1,926,511 5.7% 626,851 3 571,108 21 5,114,675 $29.60

2014 1q 483 33,214,878 1,982,254 6.0% 1,230,731 9 1,433,257 21 4,743,247 $28.63

2013 4q 474 31,781,621 1,779,728 5.6% 691,504 4 460,695 21 4,868,176 $27.93

2013 3q 470 31,320,926 2,010,537 6.4% 694,485 6 692,341 21 4,174,442 $28.04

2013 2q 464 30,628,585 2,012,681 6.6% 113,707 0 0 24 3,929,890 $24.64



(0.600)

(0.400)

(0.200)

0.000

0.200

0.400

0.600

0.800

1.000

1.200

1.400

1.600

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Perce

nt V

aca

nt


$26.00

$26.50

$27.00

$27.50

$28.00

$28.50

$29.00

$29.50

$30.00

$30.50

2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

ear

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF







K a t y / G r a n d P a r k w a y W e s t M a r k e t






2017 1q 361 5,615,605 776,856 13.8% 37,111 4 43,986 6 255,738 $27.34

2016 4q 357 5,571,619 769,981 13.8% (63,965) 1 2,475 9 293,224 $27.76

2016 3q 355 5,564,244 698,641 12.6% 81,792 1 1,200 9 290,799 $27.34

2016 2q 354 5,563,044 779,233 14.0% 95,936 4 173,325 7 48,811 $27.03

2016 1q 348 5,382,094 694,219 12.9% 38,000 3 46,678 10 193,809 $27.33

2015 4q 345 5,335,416 685,541 12.8% 244,343 4 279,764 9 227,628 $27.14

2015 3q 341 5,055,652 650,120 12.9% 128,249 4 210,637 11 482,013 $26.34

2015 2q 336 4,837,015 559,732 11.6% 196,529 6 352,647 13 568,730 $26.57

2015 1q 330 4,484,368 403,614 9.0% 252,007 5 323,078 16 884,026 $26.08

2014 4q 325 4,161,290 332,543 8.0% 139,631 3 192,274 16 1,121,515 $26.01

2014 3q 320 3,950,116 261,000 6.6% 120,688 1 7,300 18 1,165,549 $25.17

2014 2q 318 3,937,516 369,088 9.4% 200 1 203,149 15 1,019,043 $25.50

2014 1q 317 3,734,367 166,139 4.4% 61,814 11 88,668 11 668,345 $25.46

2013 4q 306 3,645,699 139,285 3.8% 170,583 0 0 16 316,617 $25.61

2013 3q 305 3,643,155 307,324 8.4% 239,592 5 319,085 13 294,361 $25.60

2013 2q 299 3,264,070 167,831 5.1% 79,378 3 21,963 18 637,446 $25.78



(0.100)

(0.050)

0.000

0.050

0.100

0.150

0.200

0.250

0.300

0.350

0.400

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Perce

nt V

aca

nt


$26.60

$26.80

$27.00

$27.20

$27.40

$27.60

$27.80

$28.00

2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

ear

0.64

0.66

0.68

0.70

0.72

0.74

0.76

0.78

0.80

2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF







K i n g w o o d / H u m b l e M a r k e t






2017 1q 207 3,296,186 237,134 7.2% 105,708 1 100,000 1 44,450 $21.40

2016 4q 206 3,196,186 242,842 7.6% (4,416) 0 0 2 144,450 $21.12

2016 3q 206 3,196,186 238,426 7.5% 30,406 0 0 2 144,450 $22.03

2016 2q 206 3,196,186 268,832 8.4% 32,570 2 9,900 2 144,450 $22.01

2016 1q 205 3,187,822 293,038 9.2% 43,089 2 7,800 4 154,350 $22.23

2015 4q 203 3,180,022 328,327 10.3% (35,227) 0 0 5 62,150 $22.43

2015 3q 203 3,180,022 293,100 9.2% (855) 0 0 4 17,700 $22.57

2015 2q 203 3,180,022 292,245 9.2% 18,205 2 51,154 2 7,800 $22.11

2015 1q 201 3,128,868 259,296 8.3% 7,198 0 0 2 51,154 $21.78

2014 4q 201 3,128,868 266,494 8.5% 2,335 0 0 2 51,154 $21.80

2014 3q 201 3,128,868 268,829 8.6% 11,461 0 0 2 51,154 $21.82

2014 2q 201 3,128,868 280,290 9.0% 12,555 0 0 1 30,000 $22.09

2014 1q 201 3,128,868 292,845 9.4% (29,619) 0 0 0 0 $21.23

2013 4q 201 3,128,868 263,226 8.4% 5,900 0 0 0 0 $21.11

2013 3q 201 3,128,868 269,126 8.6% (8,762) 0 0 0 0 $21.09

2013 2q 201 3,128,868 260,364 8.3% (20,015) 0 0 0 0 $21.23



(0.060)

(0.040)

(0.020)

0.000

0.020

0.040

0.060

0.080

0.100

0.120

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Perce

nt V

aca

nt


$20.40

$20.60

$20.80

$21.00

$21.20

$21.40

$21.60

$21.80

$22.00

$22.20

$22.40

2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

ear

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF







N A S A / C l e a r L a k e M a r k e t






2017 1q 496 10,406,101 1,594,793 15.3% (67,105) 0 0 4 26,800 $19.84

2016 4q 496 10,406,101 1,527,688 14.7% (64,119) 0 0 3 21,800 $19.88

2016 3q 496 10,406,101 1,463,569 14.1% (26,956) 2 28,000 1 6,800 $19.65

2016 2q 494 10,378,101 1,408,613 13.6% 52,778 0 0 2 28,000 $19.85

2016 1q 494 10,378,101 1,461,391 14.1% 61,910 0 0 2 28,000 $19.27

2015 4q 494 10,378,101 1,523,301 14.7% 76,990 1 10,000 2 28,000 $19.79

2015 3q 493 10,368,101 1,590,291 15.3% (28,592) 0 0 3 38,000 $20.15

2015 2q 492 10,360,601 1,554,199 15.0% (56,518) 1 3,300 2 17,500 $20.16

2015 1q 491 10,357,301 1,494,381 14.4% 14,200 3 24,858 2 10,800 $19.83

2014 4q 489 10,336,191 1,487,471 14.4% 93,593 1 18,000 5 35,658 $20.04

2014 3q 487 10,311,850 1,556,723 15.1% 143,269 1 55,000 6 52,499 $19.43

2014 2q 486 10,256,850 1,644,992 16.0% 9,810 0 0 5 99,194 $19.14

2014 1q 486 10,256,850 1,654,802 16.1% 76,835 2 126,000 3 79,341 $18.97

2013 4q 484 10,130,850 1,605,637 15.8% 111,762 0 0 3 181,000 $18.89

2013 3q 484 10,130,850 1,717,399 17.0% (24,477) 1 4,760 2 126,000 $19.04

2013 2q 483 10,126,090 1,688,162 16.7% (83,485) 0 0 3 130,760 $19.01



(0.100)

(0.050)

0.000

0.050

0.100

0.150

0.200

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

12.0%

12.5%

13.0%

13.5%

14.0%

14.5%

15.0%

15.5%

16.0%

16.5%

Perce

nt V

aca

nt


$18.90

$19.00

$19.10

$19.20

$19.30

$19.40

$19.50

$19.60

$19.70

$19.80

$19.90

$20.00

2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

ear

1.25

1.30

1.35

1.40

1.45

1.50

1.55

1.60

1.65

2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF







N o r t h B e l t M a r k e t






2017 1q 170 14,239,391 5,235,654 36.8% 33,676 0 0 0 0 $20.04

2016 4q 171 14,249,391 5,279,330 37.0% (201,792) 0 0 0 0 $20.73

2016 3q 171 14,249,391 5,077,538 35.6% 30,168 0 0 0 0 $20.29

2016 2q 171 14,249,391 5,107,706 35.8% (296,944) 0 0 0 0 $20.45

2016 1q 171 14,249,391 4,810,762 33.8% (636,150) 0 0 0 0 $20.62

2015 4q 171 14,249,391 4,174,612 29.3% (256,123) 1 68,950 0 0 $21.01

2015 3q 170 14,180,441 3,849,539 27.1% (236,468) 0 0 1 68,950 $22.02

2015 2q 170 14,180,441 3,613,071 25.5% (142,024) 0 0 1 68,950 $22.16

2015 1q 170 14,180,441 3,471,047 24.5% (753,797) 0 0 1 68,950 $22.94

2014 4q 170 14,180,441 2,717,250 19.2% (376,142) 0 0 1 68,950 $22.43

2014 3q 170 14,180,441 2,341,108 16.5% (145,212) 0 0 0 0 $22.44

2014 2q 170 14,180,441 2,195,896 15.5% 123,188 0 0 0 0 $23.57

2014 1q 170 14,180,441 2,319,084 16.4% 26,629 0 0 0 0 $24.19

2013 4q 170 14,180,441 2,345,713 16.5% 81,627 0 0 0 0 $21.88

2013 3q 170 14,180,441 2,427,340 17.1% (286,063) 0 0 0 0 $22.11

2013 2q 170 14,180,441 2,141,277 15.1% (132,643) 0 0 0 0 $21.28



(0.800)

(0.700)

(0.600)

(0.500)

(0.400)

(0.300)

(0.200)

(0.100)

0.000

0.100

0.200

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Perce

nt V

aca

nt


$19.60

$19.80

$20.00

$20.20

$20.40

$20.60

$20.80

2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

ear

0.00

1.00

2.00

3.00

4.00

5.00

6.00

2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF







N o r t h e a s t N e a r M a r k e t






2017 1q 134 2,158,452 92,233 4.3% 44,698 0 0 1 85,000 $19.37

2016 4q 134 2,158,452 136,931 6.3% 2,905 0 0 1 85,000 $19.53

2016 3q 134 2,158,452 139,836 6.5% 13,115 0 0 1 85,000 $19.43

2016 2q 134 2,158,452 152,951 7.1% 15,831 1 8,500 0 0 $19.35

2016 1q 133 2,149,952 160,282 7.5% 564,924 2 555,700 1 8,500 $19.41

2015 4q 131 1,594,252 169,506 10.6% 4,197 1 8,040 3 564,200 $19.17

2015 3q 130 1,586,212 165,663 10.4% 2,444 0 0 4 572,240 $19.07

2015 2q 130 1,586,212 168,107 10.6% 21,821 0 0 3 563,740 $17.11

2015 1q 131 1,587,884 191,600 12.1% (51,371) 0 0 3 563,740 $17.31

2014 4q 131 1,587,884 140,229 8.8% (1,482) 0 0 1 8,040 $17.73

2014 3q 131 1,587,884 138,747 8.7% 32,559 0 0 0 0 $16.81

2014 2q 131 1,587,884 171,306 10.8% 10,462 0 0 0 0 $16.83

2014 1q 131 1,587,884 181,768 11.4% 9,204 0 0 0 0 $16.89

2013 4q 131 1,587,884 190,972 12.0% 5,499 0 0 0 0 $17.46

2013 3q 131 1,587,884 196,471 12.4% (20,056) 0 0 0 0 $16.52

2013 2q 130 1,581,681 170,212 10.8% (12,003) 0 0 1 6,203 $16.52



(0.100)

0.000

0.100

0.200

0.300

0.400

0.500

0.600

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Perce

nt V

aca

nt


$19.25

$19.30

$19.35

$19.40

$19.45

$19.50

$19.55

2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

ear

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

0.18

2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF







N o r t h w e s t M a r k e t






2017 1q 492 12,315,425 1,868,992 15.2% (91,709) 1 3,600 1 15,000 $20.32

2016 4q 491 12,311,825 1,773,683 14.4% (144,046) 0 0 2 18,600 $20.13

2016 3q 491 12,311,825 1,629,637 13.2% 88,272 0 0 2 18,600 $19.96

2016 2q 491 12,311,825 1,717,909 14.0% 43,123 0 0 2 18,600 $19.62

2016 1q 491 12,311,825 1,761,032 14.3% (69,606) 2 6,360 1 15,000 $19.69

2015 4q 489 12,305,465 1,685,066 13.7% 170,867 0 0 2 6,360 $19.96

2015 3q 489 12,305,465 1,855,933 15.1% (15,308) 0 0 2 6,360 $19.67

2015 2q 490 12,382,921 1,918,081 15.5% (152,586) 0 0 1 3,560 $19.74

2015 1q 491 12,388,211 1,770,785 14.3% (74,898) 1 37,220 0 0 $19.87

2014 4q 490 12,350,991 1,658,667 13.4% 205,820 0 0 1 37,220 $19.77

2014 3q 490 12,350,991 1,864,487 15.1% 92,219 1 3,106 1 37,220 $19.62

2014 2q 488 12,343,385 1,949,100 15.8% 106,147 1 10,352 3 44,826 $20.00

2014 1q 488 12,340,033 2,051,895 16.6% 108,980 1 14,978 3 17,958 $19.72

2013 4q 489 12,348,055 2,168,897 17.6% 121,957 1 10,000 4 32,936 $18.27

2013 3q 487 12,305,055 2,247,854 18.3% (20,755) 0 0 5 71,436 $18.40

2013 2q 487 12,305,055 2,227,099 18.1% (44,236) 0 0 5 71,436 $18.45



(0.200)

(0.150)

(0.100)

(0.050)

0.000

0.050

0.100

0.150

0.200

0.250

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

Perce

nt V

aca

nt


$19.20

$19.40

$19.60

$19.80

$20.00

$20.20

$20.40

2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

ear

1.45

1.50

1.55

1.60

1.65

1.70

1.75

1.80

1.85

1.90

2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF







R i c h m o n d / F o u n t a i n v i e w M a r k e t






2017 1q 114 2,163,428 329,129 15.2% (3,289) 0 0 0 0 $17.25

2016 4q 114 2,163,428 325,840 15.1% 3,021 0 0 0 0 $17.38

2016 3q 114 2,163,428 328,861 15.2% (4,715) 0 0 0 0 $17.18

2016 2q 114 2,163,428 324,146 15.0% 21,941 0 0 0 0 $17.28

2016 1q 114 2,163,428 346,087 16.0% (21,682) 0 0 0 0 $17.25

2015 4q 114 2,163,428 324,405 15.0% (17,329) 0 0 0 0 $16.74

2015 3q 114 2,163,428 307,076 14.2% 3,488 0 0 0 0 $16.75

2015 2q 114 2,163,428 310,564 14.4% 23,472 0 0 0 0 $16.50

2015 1q 114 2,163,428 334,036 15.4% (1,067) 0 0 0 0 $16.23

2014 4q 114 2,163,428 332,969 15.4% 32,884 0 0 0 0 $15.98

2014 3q 114 2,163,428 365,853 16.9% 17,931 0 0 0 0 $15.81

2014 2q 114 2,163,428 383,784 17.7% 12,209 0 0 0 0 $15.64

2014 1q 114 2,163,428 395,993 18.3% (5,587) 0 0 0 0 $15.49

2013 4q 114 2,163,428 390,406 18.0% (14,118) 0 0 0 0 $15.20

2013 3q 114 2,163,428 376,288 17.4% 32,282 0 0 0 0 $15.37

2013 2q 114 2,163,428 408,570 18.9% 15,341 0 0 0 0 $14.62



(0.030)

(0.020)

(0.010)

0.000

0.010

0.020

0.030

0.040

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Perce

nt V

aca

nt


$17.05

$17.10

$17.15

$17.20

$17.25

$17.30

$17.35

$17.40

2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

ear

0.30

0.31

0.31

0.32

0.32

0.33

0.33

0.34

0.34

0.35

0.35

2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF







S a n F e l i p e / V o s s M a r k e t






2017 1q 49 5,342,003 903,481 16.9% (4,477) 0 0 0 0 $29.63

2016 4q 49 5,342,003 899,004 16.8% (74,499) 0 0 0 0 $29.65

2016 3q 49 5,342,003 824,505 15.4% (27,471) 0 0 0 0 $29.88

2016 2q 49 5,342,003 797,034 14.9% (75,158) 0 0 0 0 $30.03

2016 1q 49 5,342,003 721,876 13.5% (353) 0 0 0 0 $29.32

2015 4q 49 5,342,003 721,523 13.5% 32,963 0 0 0 0 $30.35

2015 3q 49 5,342,003 754,486 14.1% (4,119) 0 0 0 0 $31.01

2015 2q 49 5,342,003 750,367 14.0% (56,384) 0 0 0 0 $30.52

2015 1q 49 5,342,003 693,983 13.0% (95,257) 0 0 0 0 $30.26

2014 4q 49 5,342,003 598,726 11.2% (32,011) 0 0 0 0 $29.85

2014 3q 49 5,342,003 566,715 10.6% (4,794) 0 0 0 0 $29.65

2014 2q 49 5,342,003 561,921 10.5% 127,251 0 0 0 0 $27.12

2014 1q 49 5,342,003 689,172 12.9% (58,278) 0 0 0 0 $27.26

2013 4q 49 5,342,003 630,894 11.8% 3,077 0 0 0 0 $26.20

2013 3q 51 5,468,365 760,333 13.9% (27,398) 0 0 0 0 $25.02

2013 2q 51 5,468,365 732,935 13.4% (56,059) 0 0 0 0 $24.66



(0.150)

(0.100)

(0.050)

0.000

0.050

0.100

0.150

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

Perce

nt V

aca

nt


$28.80

$29.00

$29.20

$29.40

$29.60

$29.80

$30.00

$30.20

2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

ear

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF







S a n J a c i n t o C o u n t y M a r k e t






2017 1q 3 39,139 0 0.0% 0 0 0 0 0 $0.00

2016 4q 3 39,139 0 0.0% 0 0 0 0 0 $0.00

2016 3q 3 39,139 0 0.0% 0 0 0 0 0 $0.00

2016 2q 3 39,139 0 0.0% 0 0 0 0 0 $0.00

2016 1q 3 39,139 0 0.0% 0 0 0 0 0 $0.00

2015 4q 3 39,139 0 0.0% 0 0 0 0 0 $0.00

2015 3q 3 39,139 0 0.0% 0 0 0 0 0 $0.00

2015 2q 3 39,139 0 0.0% 0 0 0 0 0 $0.00

2015 1q 3 39,139 0 0.0% 0 0 0 0 0 $0.00

2014 4q 3 39,139 0 0.0% 7,500 0 0 0 0 $0.00

2014 3q 3 39,139 7,500 19.2% 0 0 0 0 0 $0.00

2014 2q 3 39,139 7,500 19.2% 0 0 0 0 0 $0.00

2014 1q 3 39,139 7,500 19.2% 0 0 0 0 0 $0.00

2013 4q 3 39,139 7,500 19.2% 0 0 0 0 0 $0.00

2013 3q 3 39,139 7,500 19.2% 0 0 0 0 0 $0.00

2013 2q 3 39,139 7,500 19.2% (7,500) 0 0 0 0 $0.00



0.000

0.001

0.002

0.003

0.004

0.005

0.006

0.007

0.008

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Perce

nt V

aca

nt


$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

ear

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF






Houston Office MarketMarket Highlights – Class “A, B & C”S o u t h M a r k e t






2017 1q 226 2,817,004 247,348 8.8% 15,032 1 10,394 3 323,728 $23.11

2016 4q 225 2,806,610 251,986 9.0% 21,353 0 0 2 260,394 $22.45

2016 3q 225 2,806,610 273,339 9.7% 35,681 0 0 2 260,394 $22.64

2016 2q 225 2,806,610 309,020 11.0% 63,102 0 0 2 260,394 $26.00

2016 1q 224 2,798,210 363,722 13.0% 20,131 1 47,500 1 8,400 $23.50

2015 4q 223 2,750,710 336,353 12.2% 42,790 0 0 2 55,900 $23.79

2015 3q 223 2,750,710 379,143 13.8% 19,823 1 100,000 2 55,900 $23.67

2015 2q 222 2,650,710 298,966 11.3% 15,278 0 0 2 147,500 $25.35

2015 1q 220 2,635,392 298,926 11.3% 4,076 1 7,700 3 115,318 $24.42

2014 4q 219 2,627,692 295,302 11.2% 21,249 0 0 4 123,018 $24.40

2014 3q 219 2,627,692 316,551 12.0% (9,921) 0 0 4 123,018 $22.78

2014 2q 219 2,627,692 306,630 11.7% (1,453) 1 8,086 1 7,700 $24.20

2014 1q 218 2,619,606 297,091 11.3% (3,955) 0 0 2 15,786 $24.07

2013 4q 218 2,619,606 293,136 11.2% (17,513) 0 0 1 8,086 $22.24

2013 3q 218 2,619,606 275,623 10.5% 227,693 3 230,489 1 8,086 $21.86

2013 2q 215 2,389,117 272,827 11.4% 1,307 0 0 3 230,489 $20.43



(0.020)

0.000

0.020

0.040

0.060

0.080

0.100

0.120

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Perce

nt V

aca

nt


$20.00

$21.00

$22.00

$23.00

$24.00

$25.00

$26.00

$27.00

2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

ear

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF







S o u t h H w y 3 5 M a r k e t






2017 1q 142 782,614 49,532 6.3% (3,859) 0 0 0 0 $16.33

2016 4q 142 782,614 45,673 5.8% (743) 0 0 0 0 $16.25

2016 3q 142 782,614 44,930 5.7% (394) 0 0 0 0 $15.09

2016 2q 142 782,614 44,536 5.7% (3,151) 0 0 0 0 $13.43

2016 1q 142 782,614 41,385 5.3% (3,100) 0 0 0 0 $15.16

2015 4q 142 782,614 38,285 4.9% 2,670 0 0 0 0 $16.38

2015 3q 142 782,614 40,955 5.2% 8,100 0 0 0 0 $15.39

2015 2q 142 782,614 49,055 6.3% 1,486 0 0 0 0 $15.16

2015 1q 142 782,614 50,541 6.5% (5,170) 0 0 0 0 $15.86

2014 4q 142 782,614 45,371 5.8% (3,939) 0 0 0 0 $16.86

2014 3q 142 782,614 41,432 5.3% (17,468) 0 0 0 0 $16.90

2014 2q 142 782,614 23,964 3.1% (1,282) 0 0 0 0 $15.56

2014 1q 142 782,614 22,682 2.9% 12,310 2 11,510 0 0 $15.61

2013 4q 140 771,104 23,482 3.0% 10,825 0 0 2 11,510 $15.54

2013 3q 140 771,104 34,307 4.4% (13,160) 0 0 2 11,510 $15.44

2013 2q 140 771,104 21,147 2.7% 11,096 0 0 2 11,510 $15.53



(0.020)

(0.015)

(0.010)

(0.005)

0.000

0.005

0.010

0.015

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Perce

nt V

aca

nt


$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

$18.00

2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

ear

0.04

0.04

0.04

0.04

0.04

0.05

0.05

0.05

0.05

2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF







S o u t h M a i n / M e d i c a l C e n t e r M a r k e t






2017 1q 226 12,240,564 837,938 6.8% (45,784) 0 0 0 0 $26.89

2016 4q 226 12,240,564 792,154 6.5% (56,722) 0 0 0 0 $26.51

2016 3q 226 12,240,564 735,432 6.0% 31,227 0 0 0 0 $26.46

2016 2q 226 12,240,564 766,659 6.3% 106,746 0 0 0 0 $26.34

2016 1q 226 12,240,564 873,405 7.1% 32,671 0 0 0 0 $26.61

2015 4q 226 12,240,564 906,076 7.4% 68,061 0 0 0 0 $26.71

2015 3q 226 12,240,564 974,137 8.0% 12,237 0 0 0 0 $26.42

2015 2q 226 12,240,564 986,374 8.1% 62,851 0 0 0 0 $26.65

2015 1q 227 12,319,897 1,128,558 9.2% (223,672) 0 0 0 0 $26.23

2014 4q 227 12,319,897 904,886 7.3% 20,161 0 0 0 0 $26.62

2014 3q 227 12,319,897 925,047 7.5% 34,258 1 50,000 0 0 $24.96

2014 2q 226 12,269,897 909,305 7.4% 46,472 0 0 1 50,000 $25.17

2014 1q 226 12,269,897 955,777 7.8% 68,220 0 0 1 50,000 $25.06

2013 4q 226 12,269,897 1,023,997 8.3% (5,044) 0 0 1 50,000 $24.98

2013 3q 226 12,269,897 1,018,953 8.3% (146,649) 0 0 1 50,000 $25.24

2013 2q 226 12,269,897 872,304 7.1% 20,532 0 0 1 50,000 $25.30



(0.250)

(0.200)

(0.150)

(0.100)

(0.050)

0.000

0.050

0.100

0.150

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

Perce

nt V

aca

nt


$26.00

$26.10

$26.20

$26.30

$26.40

$26.50

$26.60

$26.70

$26.80

$26.90

$27.00

2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

ear

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF







S o u t h w e s t M a r k e t






2017 1q 293 12,937,121 1,699,085 13.1% (38,257) 0 0 1 60,000 $17.09

2016 4q 293 12,937,121 1,660,828 12.8% (4,528) 0 0 1 60,000 $17.18

2016 3q 293 12,937,121 1,656,300 12.8% 76,304 0 0 1 60,000 $16.78

2016 2q 293 12,937,121 1,732,604 13.4% 123,987 0 0 1 60,000 $16.69

2016 1q 293 12,937,121 1,856,591 14.4% 12,047 0 0 1 60,000 $16.54

2015 4q 293 12,937,121 1,868,638 14.4% 36,833 0 0 0 0 $16.27

2015 3q 293 12,937,121 1,905,471 14.7% 156,666 0 0 0 0 $16.25

2015 2q 293 12,937,121 2,062,137 15.9% 110,753 0 0 0 0 $16.05

2015 1q 293 12,937,121 2,172,890 16.8% 325,339 0 0 0 0 $15.88

2014 4q 294 13,016,009 2,577,117 19.8% 123,555 0 0 0 0 $15.57

2014 3q 294 13,016,009 2,700,672 20.7% (82,531) 0 0 0 0 $16.04

2014 2q 294 13,016,009 2,618,141 20.1% 220,097 0 0 0 0 $16.28

2014 1q 294 13,016,009 2,838,238 21.8% (128,356) 1 40,529 0 0 $16.32

2013 4q 293 12,975,480 2,669,353 20.6% (77,296) 0 0 1 40,529 $16.20

2013 3q 293 12,975,480 2,592,057 20.0% 166,041 0 0 1 40,529 $15.57

2013 2q 293 12,975,480 2,758,098 21.3% (34,805) 0 0 1 40,529 $15.50



(0.200)

(0.150)

(0.100)

(0.050)

0.000

0.050

0.100

0.150

0.200

0.250

0.300

0.350

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Perce

nt V

aca

nt


$16.20

$16.40

$16.60

$16.80

$17.00

$17.20

$17.40

2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

ear

1.50

1.55

1.60

1.65

1.70

1.75

1.80

1.85

1.90

2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF







W e s t B e l t M a r k e t






2017 1q 102 6,714,055 1,331,976 19.8% (63,698) 0 0 0 0 $25.66

2016 4q 102 6,714,055 1,268,278 18.9% 45,785 0 0 0 0 $25.32

2016 3q 102 6,714,055 1,314,063 19.6% (83,400) 1 22,000 0 0 $24.38

2016 2q 101 6,692,055 1,208,663 18.1% (192,368) 0 0 1 22,000 $25.80

2016 1q 101 6,692,055 1,016,295 15.2% 131,757 0 0 1 22,000 $27.23

2015 4q 101 6,692,055 1,148,052 17.2% 7,133 1 205,167 0 0 $27.70

2015 3q 100 6,486,888 950,018 14.6% 12,252 0 0 1 205,167 $27.56

2015 2q 100 6,486,888 962,270 14.8% 333,333 3 628,861 1 205,167 $27.51

2015 1q 97 5,858,027 666,742 11.4% 694,414 3 1,029,203 4 834,028 $28.02

2014 4q 94 4,828,824 331,953 6.9% (14,204) 0 0 7 1,863,231 $26.95

2014 3q 94 4,828,824 317,749 6.6% (16,690) 0 0 6 1,658,064 $27.21

2014 2q 94 4,828,824 301,059 6.2% (84,665) 1 55,500 5 1,549,431 $27.25

2014 1q 93 4,773,324 160,894 3.4% 36,976 0 0 4 651,511 $25.97

2013 4q 93 4,773,324 197,870 4.1% 61,809 0 0 2 312,743 $27.57

2013 3q 93 4,773,324 259,679 5.4% 163,061 1 159,056 1 257,243 $27.29

2013 2q 92 4,614,268 263,684 5.7% 44,954 0 0 1 159,056 $23.86



(0.400)

(0.200)

0.000

0.200

0.400

0.600

0.800

1.000

1.200

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Perce

nt V

aca

nt


$22.50

$23.00

$23.50

$24.00

$24.50

$25.00

$25.50

$26.00

$26.50

$27.00

$27.50

2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

ear

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF







W e s t L o o p M a r k e t






2017 1q 131 24,578,778 4,227,696 17.2% 53,603 1 380,000 1 104,579 $34.23

2016 4q 130 24,198,778 3,901,299 16.1% (125,955) 0 0 2 484,579 $34.38

2016 3q 130 24,198,778 3,775,344 15.6% (3,977) 1 593,850 2 484,579 $34.79

2016 2q 129 23,604,928 3,177,517 13.5% (73,699) 1 165,000 3 1,078,429 $35.12

2016 1q 130 23,547,025 3,045,915 12.9% 32,657 0 0 4 1,243,429 $34.94

2015 4q 130 23,547,025 3,078,572 13.1% (350,422) 0 0 4 1,243,429 $33.56

2015 3q 130 23,547,025 2,728,150 11.6% 65,942 1 92,021 3 1,138,850 $33.73

2015 2q 129 23,455,004 2,702,071 11.5% (318,395) 0 0 4 1,230,871 $33.64

2015 1q 129 23,455,004 2,383,676 10.2% (24,611) 0 0 4 1,230,871 $33.12

2014 4q 129 23,455,004 2,359,065 10.1% 127,141 1 4,400 3 850,871 $32.92

2014 3q 129 23,506,722 2,537,924 10.8% 162,881 1 83,073 3 690,271 $33.01

2014 2q 128 23,423,649 2,617,732 11.2% (89,667) 1 81,502 4 773,344 $32.57

2014 1q 127 23,342,147 2,446,563 10.5% 242,072 0 0 5 854,846 $32.15

2013 4q 127 23,342,147 2,688,635 11.5% 167,235 0 0 3 256,596 $31.58

2013 3q 127 23,342,147 2,855,870 12.2% 71,937 1 304,419 3 256,596 $30.99

2013 2q 126 23,037,728 2,623,388 11.4% 392,634 1 326,200 3 468,994 $31.15



(0.400)

(0.200)

0.000

0.200

0.400

0.600

0.800

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Perce

nt V

aca

nt


$33.60

$33.80

$34.00

$34.20

$34.40

$34.60

$34.80

$35.00

$35.20

2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

ear

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF







W e s t c h a s e M a r k e t






2017 1q 135 18,454,625 3,807,691 20.6% (96,375) 1 10,000 1 187,011 $28.84

2016 4q 134 18,444,625 3,701,316 20.1% (108,164) 0 0 2 197,011 $28.46

2016 3q 134 18,444,625 3,593,152 19.5% 160,823 0 0 2 197,011 $29.05

2016 2q 134 18,444,625 3,753,975 20.4% (109,786) 1 1,100,000 2 197,011 $30.73

2016 1q 133 17,344,625 2,544,189 14.7% 214,476 1 445,000 2 1,287,011 $31.62

2015 4q 132 16,899,625 2,313,665 13.7% (19,286) 0 0 2 1,545,000 $30.91

2015 3q 132 16,899,625 2,294,379 13.6% 85,195 0 0 2 1,545,000 $30.68

2015 2q 132 16,899,625 2,379,574 14.1% 54,330 0 0 2 1,545,000 $30.82

2015 1q 132 16,899,625 2,433,904 14.4% (293,136) 0 0 2 1,545,000 $31.21

2014 4q 132 16,899,625 2,140,768 12.7% 134,704 1 290,000 2 1,545,000 $30.37

2014 3q 131 16,609,625 1,985,472 12.0% (54,424) 2 440,092 3 1,835,000 $31.62

2014 2q 129 16,169,533 1,490,956 9.2% 134,607 0 0 5 2,275,092 $31.35

2014 1q 129 16,169,533 1,625,563 10.1% 303,737 2 209,023 4 1,175,092 $30.95

2013 4q 127 15,960,510 1,720,277 10.8% (160,562) 1 302,551 4 832,123 $30.67

2013 3q 126 15,657,959 1,257,164 8.0% 26,511 0 0 4 844,674 $29.45

2013 2q 126 15,657,959 1,283,675 8.2% 174,058 0 0 4 844,674 $28.52



(0.400)

(0.200)

0.000

0.200

0.400

0.600

0.800

1.000

1.200

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Perce

nt V

aca

nt


$26.50

$27.00

$27.50

$28.00

$28.50

$29.00

$29.50

$30.00

$30.50

$31.00

$31.50

$32.00

2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

ear

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF




W o o d l a n d s M a r k e t






2017 1q 565 20,487,928 2,234,484 10.9% 44,654 3 25,501 2 498,796 $29.76

2016 4q 562 20,462,427 2,253,637 11.0% 122,882 7 55,056 4 197,497 $29.36

2016 3q 555 20,407,371 2,321,463 11.4% 61,528 6 292,975 11 252,553 $29.75

2016 2q 548 20,110,721 2,086,341 10.4% (2,480) 3 254,470 17 547,202 $29.78

2016 1q 544 19,840,251 1,813,391 9.1% 75,031 2 154,900 16 602,976 $30.12

2015 4q 542 19,685,351 1,733,522 8.8% 523,690 5 1,142,739 14 737,580 $29.90

2015 3q 537 18,542,612 1,114,473 6.0% 140,351 1 13,384 14 1,789,704 $30.80

2015 2q 536 18,529,228 1,241,440 6.7% 395,044 4 520,650 14 1,788,328 $30.14

2015 1q 531 18,002,028 1,109,284 6.2% 1,671,815 11 1,639,199 16 2,103,793 $28.58

2014 4q 520 16,362,829 1,141,900 7.0% 1,768,926 14 1,909,679 21 3,303,622 $29.33

2014 3q 505 14,447,150 995,147 6.9% 580,764 10 391,569 33 5,198,167 $29.98

2014 2q 494 14,050,681 1,179,442 8.4% 54,666 10 440,820 41 5,261,471 $29.78

2014 1q 482 13,591,415 774,842 5.7% 860,977 13 753,158 47 5,450,957 $29.98

2013 4q 469 12,838,257 882,661 6.9% 148,956 9 88,100 47 5,393,592 $28.72

2013 3q 461 12,761,157 954,517 7.5% 263,791 6 558,328 49 5,371,179 $29.16

2013 2q 454 12,188,579 645,730 5.3% 286,738 4 300,521 42 5,451,532 $28.23



(0.500)

0.000

0.500

1.000

1.500

2.000

2.500

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q

Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Perce

nt V

aca

nt


$28.80

$29.00

$29.20

$29.40

$29.60

$29.80

$30.00

$30.20

2016 1q 2016 3q 2017 1q

Dollars

/SF/Y

ear

0.00

0.50

1.00

1.50

2.00

2.50

2016 1q 2016 3q 2017 1q

Millions

SF

Direct SF Sublet SF

Documents

CoStar Office Report - WordPress.com Office Market D CoStar Office Statistics ©2017 CoStar Group, Inc. Houston – First Quarter 2017 First Quarter 2017 – Houston Houston Office