Industrial Q3 217 5 3 1 AUSTIN INDUSTRIAL Economic Indicators Market Indicators (Overall, All Classes) Overall Net Absorption/Overall Asking Rent 4-QTR TRAILING AVERAGE Overall Vacancy Q3 216 Q3 217 Employment 1,4k 1,22k Unemployment 3.3% 3.1% U.S. Unemployment 4.9% 4.4% Q3 216 Q3 217 Vacancy 7.5% 9.5% Net Absorption (SF, YTD) 494k -385k Under Construction (SF) 654k 736k Average Asking Rent* $9.75 $9.34 *Rental rates reflect net asking $psf/year -1 212 213 214 215 216 217 Q3 2% 17% 15% 12% 1% 7% 5% Net Absorption, SF (thousands) Historical Average = 1% Asking Rent, $ PSF 2% 212 213 214 215 216 217 Q3 $1 $9 $8 $7 $6 $5 Economy The economy continued to show its vitality to close out Q3 217. The city s unemployment rate of 3.1% remains significantly lower than the national average of 4.4% and state average of 4.2%. Local job growth, while not as robust as 216, continues to outpace national and state averages as well. High-tech and creative industries continue to fuel this economic expansion as companies such as Facebook, Google, and Amazon confirm their faith in. The city s continued ability to maintain low unemployment rates while effectively generating jobs indicates a strong and healthy local economy. Market Overview The industrial market experienced nearly 385, square feet (SF) of negative absorption during the third quarter of 217. Several large move-outs, including Pearson Inc. which vacated 135,442 SF at 95 West Howard, helped push absorption levels lower. Vacancy rates for all industrial product types remain below historical levels, coming in at 9.5% to end Q3 217. Warehouse vacancy increased 19 basis points from Q2 217 to 8.4%, while office service (flex) product dropped 8 basis points from the previous quarter to 11.2%. The average net rental rate for all property types for Q3 217 was $9.34 per square foot (PSF). Warehouse/Distribution rates rose slightly to $6.72 PSF, while Office service (flex) property types continue to outperform other industrial types, with an overall average rental rate of $12.52 PSF. Outlook While vacancy rates for industrial product remain healthy in comparison to historical averages, a trend of negative absorption seems to point to signs of a softening industrial market. With more than 85, SF of new industrial product already delivered in 217 and another 75, SF set to deliver by year s end, higher vacancies appear to be on the horizon as landlords work to fill excess space. With this increase in vacancy looming, we can assume industrial product asking rates will gradually decline as landlords discount rates in order to attract tenants. All of this withstanding, the long-term outlook for the industrial market remains upbeat. Population growth in continues at a torrid pace, and more and more businesses are making their way to the region and expanding their business footprints. This sustained economic growth should ultimately lead to a demand for both warehouse/distribution and flex space. cushmanwakefield.com
Industrial Q3 217 SUBMARKET INVENTORY OVERALL YTD NET OVERALL VACANCY RATE ABSORPTION UNDER CNSTR (MF) (OS) (W/D) Central 18,9 % Far Northwest 1,664,349 6.9% 79,38 231,3 $14.4 $6.46 North Central 6,16,796 15.5% -253,776 $8.74 $13.74 $6.79 Northeast 11,728,259 13.2% -331,57 39,15 $9.51 $6.9 Northwest.% South Central 1,799,537 2.9% 27,853 $14.68 $7.49 Southeast 1,178,657 1.5% 43,179 465,371 $13.31 $7.8 Southwest 376,181 8.9% -1, $1.5 $7.6 Round Rock 6,915,42 6.4% 51,436 $11.52 $8.15 AUSTIN TOTALS 38,842,99 9.5% -384,777 735,551 $8.77 $12.52 $6.72 *Rental rates reflect asking $psf/year MF = Manufacturing OS = Office Service/Flex W/D = Warehouse/Distribution Key Lease Transactions Q3 217 PROPERTY SF TENANT TRANSACTION TYPE SUBMARKET Corridor Park 184,833 Wayne Fueling Systems Lease Round Rock Vista Park 5 86,7 Flooring Services SW, LTD Lease Round Rock 11 N. I-35, Bldg B 49,5 FEMA Lease North Central Key Sales Transactions Q3 217 PROPERTY SF SELLER/BUYER PRICE / $PSF SUBMARKET 145 Summit Dr. 53,1 BTI LLC / 217 Summit Park LP Undisclosed North Central 51 Waller St. 35, WBH LTD / WC 5 th & Waller, LLC $6,64, / $189 East 3841 Ranch Road 62 32,697 D&M Dixon / MBSB Commercial Holdings Undisclosed Southwest Cushman & Wakefield 2 W. Cesar Chavez St Suite 25 cushmanwakefield.com Jeff Graves, Sr. GIS & Research Analyst Tel: +1 512 474 24 Jeff.graves@cushwake.com About Cushman & Wakefield Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 43, employees in more than 6 countries help investors and occupiers optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter. Copyright 217 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Industrial Q2 217 AUSTIN INDUSTRIAL Economic Indicators Q2 216 Q2 217 Employment 994k 1,23k Unemployment 3.% 3.6 U.S. Unemployment 4.9% 4.4% Market Indicators (Overall, All Classes) Q2 216 Q2 217 Vacancy 7.7% 8.6% Economy The economy remained steadfast to close out the first half of 217. With an unemployment rate of 3.6%, remains significantly lower than the national average of 4.4%, and job growth in the region also continues to outpace national averages. According to the U.S. Bureau of Labor statistics, the MSA added more than 29, new jobs to the area in the past 12 months, a 2.9% increase. Construction remains robust across as well. Several high-profile construction projects reflect the confidence taking place in the city, including the 37-story Fairmont Hotel in downtown, as well as The Independent, a 58-story residential tower that will be the tallest residential tower west of the Mississippi once it is completed in 218. Net Absorption (SF, YTD) 242k -75k Under Construction (SF) 414k 964k Average Asking Rent* $9.66 $9.21 *Rental rates reflect net asking $psf/year Overall Net Absorption/Overall Asking Rent 4Q TRAILING AVERAGE $1 5 $9 3 $8 $7 1 $6-1 $5 212 213 214 215 216 Q2 217 Net Absorption, SF (thousands) Asking Rent, $ PSF Overall Vacancy 2% 17% 15% 12% 1% Historical Average = 11% 7% 5% 2% 211 212 213 214 215 216 Q2 217 Market Overview The Industrial market rebounded from the negative absorption we saw in Q1 217. Absorption was up for Q2 217, totaling approximately 135, square feet (SF) overall. The Southeast (SE) submarket experienced the majority of this absorption, recording 137, SF overall. Vacancy rates for all industrial product types remain low, with an overall rate of 8.6%. Although vacancy has risen from the historic lows we ve seen recently, demand in the market is strong and leasing activity remains healthy. The average net rental rate for all property types for Q2 217 was $9.21 per square foot (PSF). Office service (flex) property types continue to perform strongly, with an overall average rental rate of $12.51 psf. As has been the case over the last year, this trend can be attributed to the continued demand for value office space as traditional office users are squeezed out of higher priced office product. Subsequently, many landlords are seeing this as an opportunity to maximize rents and market flex space as a pure office alternative. Outlook The industrial market will more than likely continue to trend upward. Overall vacancy rates are maintaining a healthy level while rental rates remain stable. Deliveries appear to be in balance with market demand with more than 9, square feet of industrial product under construction. As population growth continues and more and more businesses flock to the capital city and expand their business footprints, we should expect to see demand for both warehouse/distribution and flex space increase as we move into the second half of 217 and continue this trend well into 218. cushmanwakefield.com
Industrial Q2 217 SUBMARKET INVENTORY OVERALL YTD NET OVERALL VACANCY RATE ABSORPTION UNDER CNSTR (MF) (OS) (W/D) Central 18,9 % Far Northwest 1,664,349 5.7% 62,62 231,3 $14.38 $6.46 North Central 6,16,796 8.9% -146,472 $8.68 $13.57 $6.88 Northeast 11,728,259 9.7% -72,132 39,15 $9.55 $6.83 Northwest.% South Central 1,799,537 2.5% 18,221 $14.68 $7.21 Southeast 9,981,7 9.8% 13,583 694,94 $13.5 $8.8 Southwest 376,181 4.1% 2,75 $8.4 $7.6 Round Rock 6,915,42 7.2% 46,973 $11. $7.33 AUSTIN TOTALS 38,644,449 8.6% -74,457 964,274 $8.68 $12.51 $6.45 *Rental rates reflect asking $psf/year MF = Manufacturing OS = Office Service/Flex W/D = Warehouse/Distribution Key Lease Transactions Q2 217 PROPERTY SF TENANT TRANSACTION TYPE SUBMARKET TechRidge Three.1 76, Kompan Lease Northeast TechRidge Two.1 46, AG&M Granite Lease Northeast 737 Burleson Rd. 35, Evolution Salt Lease Southeast Key Sales Transactions Q2 217 PROPERTY SF SELLER/BUYER PRICE / $PSF SUBMARKET 21 E. Saint Elmo Rd. 12,194 Veritiv Corp/Gramercy Property Trust $9,7, / $95 South Central 36 Tradesmen Park Dr. 52,44 Paint Sundries LLC/3 Tradesmen LLC Undisclosed Round Rock 231 Donley Dr. 24,7 Jammer, LLC/Boost Logic $1,8, / $73 North Central Cushman & Wakefield 2 W. Cesar Chavez St Suite 25 cushmanwakefield.com Jeff Graves, Sr. GIS & Research Analyst Tel: +1 512 474 24 Jeff.graves@cushwake.com About Cushman & Wakefield Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 43, employees in more than 6 countries help investors and occupiers optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter. Copyright 217 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Industrial Q1 217 5 3 1 AUSTIN INDUSTRIAL Economic Indicators Market Indicators (Overall, All Classes) Overall Net Absorption/Overall Asking Rent 4Q TRAILING AVERAGE Overall Vacancy Q1 216 Q1 217 Employment 987k 1,16k Unemployment 3.3% 3.4% U.S. Unemployment 4.9% 4.8% Q1 216 Q1 217 Vacancy 6.8% 9.5% Net Absorption (SF, YTD) 172k -29k Under Construction (SF) 37k 593k Average Asking Rent* $9.72 $9.27 *Rental rates reflect net asking $psf/year 2% 17% 15% 12% 1% 7% 5% Historical Average = 11% -1 $5 211 212 213 214 215 216 Q1 217 Net Absorption, SF (thousands) Asking Rent, $ PSF 2% 211 212 213 214 215 216 Q1 17 $1 $9 $8 $7 $6 Economy The economy remained robust in the first quarter of 217. Job growth remains strong and the unemployment rate is still one of the lowest in the country, coming in at 3.4% versus the national average of 4.8%. Nationally, the technology sector is the leading industry for real estate expansion and that is certainly the case in as more and more tech companies relocate to or expand operations in the capital city. Additionally, s tourism industry continues to thrive, with millions of visitors making their way to each year and pumping millions of dollars into the local economy. Market Overview The Industrial market saw its streak of positive absorption come to an end as the market recorded negative net absorption of 29, square feet (SF) to end the first quarter of 217. New deliveries totaling 335,946 SF helped push vacancy rates higher for all industrial product types, with an overall rate of 9.5%. Warehouse/distribution vacancy was the lowest of all product types with an overall rate of 7.7%. Although vacancy has risen from the historic lows we ve seen recently, demand in the market is strong and leasing activity remains healthy. Several new deliveries, including the 116, SF flex building at TechRidge, have lessened the supply deficit and several other large facilities, such as the 231, SF Brushy Creek Corporate Center, have broken ground and will further add to supply levels. The average net rental rate for all property types for Q1 217 was $9.27 per square foot (PSF). Office service (flex) property types continue to perform strongly, with an overall average rental rate of $12.6 psf. This property type has consistently mirrored s red-hot office market, as traditional office users are priced out of expensive space and turn to value office alternatives. Outlook Consistent demand for newer warehouse and flex properties have pushed developers to fill voids in the market. As of close of 1 st quarter 217, there is approximately 6, square feet of industrial product under construction and another 1.5 Million SF of proposed industrial product in the pipeline. Although vacancy rates have crept upward when compared to the record lows we experienced in 216, healthy leasing activity and an everexpanding population base should keep demand for both warehouse/distribution and flex space strong throughout 217. cushmanwakefield.com
Industrial Q1 217 SUBMARKET INVENTORY OVERALL YTD NET OVERALL VACANCY RATE ABSORPTION UNDER CNSTR (MF) (OS) (W/D) Central 18,9 % Far Northwest 5,685,27 7.% 54,13 231,3 $14.9 $5.23 North Central 5,59,583 8.5% -42,36 $8.74 $12.72 $7.8 Northeast 9,465,18 7.9% -9,172 51,2 $9.92 $6.84 Northwest 25,561.% $9.23 $6.8 South Central 1,64,82 2.8% -12,252 $15.63 $8.19 Southeast 9,648,768 9.1% -123,16 272,5 $11.89 $8.38 Southwest 259,731 5.% $8. Round Rock 6,912,936 8.9% -76,88 38,4 $7.98 $6.33 AUSTIN TOTALS 38,32,749 9.5% -29,19 593,13 $8.74 $12.6 $6.48 *Rental rates reflect asking $psf/year MF = Manufacturing OS = Office Service/Flex W/D = Warehouse/Distribution Key Lease Transactions Q1 217 PROPERTY SF TENANT TRANSACTION TYPE SUBMARKET Vista Park 4 45,9 Central Transportation Systems Lease Round Rock 2325 Ben White Blvd 4,957 Warehouse & Distribution Sublease Southeast Longhorn Center 12,99 Illusions Rentals Lease Far Northwest Key Sales Transactions Q1 217 PROPERTY SF SELLER/BUYER PRICE / $PSF SUBMARKET Southpark Commerce 1-3 47,886 Clarion Partners/Colony Capital $5,6, / $17 Southease 11 Middle Fiskville Rd 332,345 Golfsmith/BH Properties $2,5, / $61 North Central 17 Cypress Blvd 98,72 World Class Capital/Round Rock ISD $6,711,736 / $68 Round Rock Cushman & Wakefield 2 W. Cesar Chavez St Suite 25 cushmanwakefield.com Jeff Graves, Sr. GIS & Research Analyst Tel: +1 512 474 24 Jeff.graves@cushwake.com About Cushman & Wakefield Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. The firm s 43, employees in more than 6 countries provide deep local and global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visitwww.cushmanwakefield.com or follow @CushWake on Twitter. Copyright 217 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Industrial Q4 216 AUSTIN INDUSTRIAL Economic Indicators Q4 15 Q4 16 Employment 978k 997k Unemployment 3.4% 3.5% U.S. Unemployment 5.% 4.8% Market Indicators (Overall, All Classes) Q3 15 Q4 16 Vacancy 6.1% 6.4% Net Absorption (SF, YTD) 1.77M 611K Economy The market wrapped up 216 much like it began with population in the metro area increasing at a record pace, phenomenal job growth, and an unemployment rate that remains one of the lowest in the country, coming in at 3.5% versus the national average of 4.8%. The technology sector is still the driving force behind this success and Fortune 5 companies continue to move to or expand their operations in. This has an indirect benefit for smaller businesses and the economy as a whole. s tourism industry remains robust as well. According to the Convention & Visitors Bureau, there were more than 24 million visitors to in 216, which led to an economic impact of $7 billion to the Live Music Capital of the World. Under Construction (SF) 347k 841k Average Asking Rent* $9.94 $9.71 *Rental rates reflect net asking $psf/year Overall Net Absorption/Overall Asking Rent 4Q TRAILING AVERAGE 5 3 1-1 211 212 213 214 215 216 Q4 $1 $9 $8 $7 $6 $5 Market Overview The Industrial market recorded just over 116, square feet (SF) of overall absorption during Q4 216. The Northeast (NE) led all submarkets, recording 89,788 SF of overall absorption. Vacancy rates for all industrial product types remain low, with an overall rate of 6.4%, down from the 7.5% rate recorded in Q3 216. Although absorption has slowed somewhat as compared to previous quarters, lack of supply should continue to keep vacancy rates low and push rental rates upward. The average net rental rate for all property types for Q4 216 was $9.71 per square foot (PSF). Office service (flex) property types continue to perform strongly, with an overall average rental rate of $11.71 psf. This property type has consistently mirrored s red-hot office market, as traditional office users are priced out of expensive space and turn to value office alternatives. Net Absorption, SF (thousands) Asking Rent, $ PSF Overall Vacancy 2% 17% 15% 12% 1% Historical Average = 11% 7% 5% 2% 211 212 213 214 215 216 Q4 Outlook As we kick-off 217, we can expect to see the industrial market continue its upward trend. Demand for quality warehouse and flex properties has pushed construction starts as developers look to fill voids in the market. As of close of 4 th quarter 216, there is currently more than 84, square feet of industrial product under construction as compared to 34, SF at the same time in 215. With overall vacancy rates at near record lows and asking rates on the rise, we should see these newer deliveries leased up steadily. With population growth expected to continue, we will likely see demand for both warehouse/distribution and flex space increase throughout 217. cushmanwakefield.com
Industrial Q4 216 SUBMARKET INVENTORY OVERALL YTD NET OVERALL VACANCY RATE ABSORPTION UNDER CNSTR (MF) (OS) (W/D) Central 18,9 % Far Northwest 4,456,859 1.2% -34,135 3, $14.95 $5.43 North Central 9,6,964 4.2% 251,797 $7.8 $12.71 $7.88 Northeast 12,546,533 14.7% -29,439 551,2 $9.18 $6.49 Northwest 4,139,66 2.3% 158,976 $9.3 $6.23 South Central 1,354,422 8.2% -6,737 $16.53 $8.29 Southeast 9,938,982 7.3% 55,475 22,965 $11.64 $8.4 Southwest 272,66 2.3% 2,883 $11.96 Round Rock 3,712,935 6.1% 131,575 38,4 $7.58 $6.3 AUSTIN TOTALS 46,41,861 6.4% 611,5 84,565 $7.8 $11.71 $6.92 *Rental rates reflect asking $psf/year MF = Manufacturing OS = Office Service/Flex W/D = Warehouse/Distribution Key Lease Transactions 216 PROPERTY SF TENANT TRANSACTION TYPE SUBMARKET Southpark Commerce Center 145, Lighthouse Lease Southeast Heritage Crossing 126,782 LKQ Corporation Lease Round Rock 116 E. Old Settlers 122,12 UPS Sublease Round Rock Key Sales Transactions 216 PROPERTY SF SELLER/BUYER PRICE / $PSF SUBMARKET Tech Ridge I,II,III 1,23,12 TA Realty/Stockbridge $53,, / $52 Northeast Met Center 15 257, Daymark Realty/Virtua Partners 28,, / $19 Southeast Parmer Business Park 257, RREEF/Eurus Capital Partners Undisclosed Far Northwest Cushman & Wakefield 2 W. Cesar Chavez St Suite 25 cushmanwakefield.com Jeff Graves, Sr. GIS & Research Analyst Tel: +1 512 474 24 Jeff.graves@cushwake.com About Cushman & Wakefield Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. The firm s 43, employees in more than 6 countries provide deep local and global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visitwww.cushmanwakefield.com or follow @CushWake on Twitter. Copyright 216 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Industrial Snapshot Q2 216 AUSTIN INDUSTRIAL Economic Indicators Q2 215 Q2 216 Employment 953k 987k Unemployment 3.3% 3.% U.S. Unemployment 5.4% 4.9% Market Indicators (Overall, All Classes) Q2 215 Q2 216 Vacancy 8.6% 7.7% Net Absorption (sf) 594k 242k Economy The economy continues to impress. With an unemployment rate of 3.%, s jobless rate remains significantly lower than the national average of 4.9%. Job growth in the region also continues to outpace national averages. According to the U.S. Bureau of Labor Statistics, the MSA added more than 34, new jobs to the area in the past 12 months, a 3.6% increase. Population figures continue to follow a similar path. A recent demographic study by the City of indicated there was a net population gain of more than 15 people per day added to the MSA. This includes Georgetown, TX, a north suburb, which was recently ranked #1 as the fastest growing city in the country according to the U.S. Census Bureau. Under Construction (sf) 411k 349k Average Asking Rent* $9.36 $9.66 *Rental rates reflect net asking $psf/year Overall Net Absorption/Overall Asking Rent 4Q TRAILING AVERAGE $1 5 $9 3 $8 $7 1 $6-1 $5 211 212 213 214 215 216 Net Absorption, SF (thousands) Asking Rent, $ PSF Overall Vacancy 2% 17% 15% 12% 1% Historical Average = 11% 7% 5% 2% 211 212 213 214 215 216 Market Overview The Industrial market recorded 242,7 square feet (sf) of overall absorption during Q2 216. The North Central (NC) submarket experienced the majority of this absorption, recording 138,414 sf overall. Vacancy rates for all industrial product types remain low, with an overall rate of 7.7%, compared to 8.6% in Q2 215. Continued strong absorption rates coupled with lack of supply should continue to lower vacancy rates and subsequently push rental rates higher. The average net rental rate for all property types for Q2 216 was $9.66 per square foot (psf), which was up $.6 psf from Q1 216. Additionally, office service property types continue to perform strongly, with an overall average rental rate of $11.64 psf. As has been the case over the last year, this trend can be attributed to the continued demand for value office space as traditional office users are squeezed out of higher priced office product. Subsequently, many landlords are seeing this as an opportunity to maximize rents and have begun marketing flex space as pure office. Outlook The industrial market will more than likely continue to trend upward. Overall vacancy rates are maintaining a very healthy level while rental rates continue to rise. Deliveries appear to be in balance with market demand with more than 349, square feet of industrial product under construction. As population growth continues and more and more businesses flock to the capital city and expand their business footprints, we can expect to see demand for both warehouse/distribution and flex space increase as we move into the second half of 216 and continue this trend well into 217. cushmanwakefield.com
Industrial Snapshot Q2 216 SUBMARKET INVENTORY OVERALL YTD NET OVERALL VACANCY RATE ABSORPTION UNDER CNSTR (MF) (OS) (W/D) Central 18,9 % Far Northwest 4,456,859 1.7% (36,478) 3, $14.93 $5.34 North Central 9,6,964 5.2% 188,264 $7.8 $12.81 $7.88 Northeast 12,121,947 14.4% (35,78) 18,395 $9.13 $6.5 Northwest 4,139,66 4.4% 48,79 $8.98 $6.14 South Central 1,434,649 7.6% 5,993 $17.44 $8.24 Southeast 9,725,951 6.8% 19,554 58,5 $11.72 $8.47 Southwest 272,66 2.7% 13,383 $11.7 Round Rock 3,644,669 6.1% 12,721 8,34 $7.58 $6.3 AUSTIN TOTALS 45,614,617 7.7% 413,736 348,74 $7.8 $11.64 $6.9 *Rental rates reflect asking $psf/year MF = Manufacturing OS = Office Service/Flex W/D = Warehouse/Distribution Key Lease Transactions Q2 216 PROPERTY SF TENANT TRANSACTION TYPE SUBMARKET 116 E. Old Settlers 122,12 UPS Sublease Round Rock Expo 13 32, Ketra Lease Southeast Southpark Commerce Center 4 25,68 Ingersoll-Rand Lease Southeast Key Sales Transactions Q2 216 PROPERTY SF SELLER/BUYER PRICE / $PSF SUBMARKET Met Center 15 257, Daymark Realty/Virtua Partners $28,, / $19 Southeast 21 E. Saint Elmo 12,194 William Bell/Veritiv Operating Co. Undisclosed South Central Howard Lane Distribution Center 77,484 Seetha Singh/John Lewis Co. $3,5, / $45 North Central Cushman & Wakefield 2 W. Cesar Chavez St Suite 25 cushmanwakefield.com Jeff Graves, Sr. GIS & Research Analyst Tel: +1 512 474 24 Jeff.graves@cushwake.com About Cushman & Wakefield Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. The firm s 43, employees in more than 6 countries provide deep local and global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visitwww.cushmanwakefield.com or follow @CushWake on Twitter. Copyright 216 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Industrial Snapshot Q1 216 AUSTIN INDUSTRIAL Economic Indicators Q1 15 Q1 16 Employment 944k 985k Unemployment 3.5% 3.2% U.S. Unemployment 5.6% 4.9% Market Indicators (Overall, All Product Types) Q1 15 Q1 16 Vacancy 9.6% 6.8% Net Absorption (sf) 256k 172k Under Construction (sf) 348k 37k Average Asking Rent* $9.36 $9.72 *Rental rates reflect asking $psf/year Overall Net Absorption/Asking Rent 4Q TRAILING AVERAGE 5 3 1 $1 $9 $8 $7 $6 Economy The first quarter of 216 marked yet another quarter that the unemployment rate ranked as one of the lowest amongst the 5 largest metropolitan areas, coming in at 3.2% (as of March 216). The local unemployment rate also remains ahead of both the Texas rate of 4.5% and the national rate of 4.9%. Additionally, the rate of job growth in the MSA continues to impress. According to the U.S. Bureau of Labor Statistics, has added more than 39,8 new jobs in the past 12 months, ranking it 3 rd nationally. Many of these new jobs can be attributed to more and more companies relocating or expanding to from other areas, including many Silicon Valley tech companies that are finding the market rich in talent. s unique vibes, original cuisine, and spectacular music has only fueled this popularity and the city s continued economic growth is reflective of that. Market Overview The Industrial market recorded 171,666 square feet (sf) of overall absorption during Q1 216. The Southeast (SE) submarket experienced the majority of this absorption, recording 134,33 sf overall. Vacancy rates for all industrial product types remain low, with an overall rate of 6.8%, compared to 9.6% in Q1 215. Continued strong absorption rates coupled with lack of supply should continue to lower vacancy rates and subsequently push rental rates higher. The average net rental rate for all property types for Q1 216 was $9.72 per square foot (psf), which was up $.36 psf from the same quarter in 215, an increase of 3.8%. Additionally, office service property types continue to perform strongly, with an overall average rental rate of $11.36 psf. This trend can be attributed to the continued demand for value office space as traditional office users are squeezed out of higher priced office product. -1 $5 21 211 212 213 214 215 Q1 16 Net Absorption, SF (thousands) Asking Rent, $ PSF Overall Vacancy 2% 17% 15% 12% 1% Historical Average = 11% 7% 5% 2% 211 212 213 214 215 Q1 16 Outlook continues to be an attractive destination for growing businesses. Large, established companies such as Amazon, Oracle, Apple, Google, and others have shown their commitment to and continue to expand their presence in the capital city. Additionally, existing local companies are continuing to add to their current footprints as their businesses reap the benefits of a strengthening economy. Nationally, the spotlight continues to shine on. In January, Forbes named No.1 for America s Next Boom Towns. This is evident as s population growth continues to climb at a record pace. With this increased population, demand for both warehouse/distribution and flex space will increase, and as supply continues to lag behind, higher rental rates and lower vacancy rates will continue across most submarkets.
Industrial Snapshot Q1 216 SUBMARKET INVENTORY OVERALL YTD NET OVERALL VACANCY RATE ABSORPTION UNDER CNSTR (MF) (OS) (W/D) Central 18,9 % $7.8 Far Northwest 4,48,259 1.9% (21,199) $15.1 $5.28 North Central 9,892,596 5.7% 49,85 $12.87 $7.8 Northeast 12,43,527 15.9% (56,775) 96, $9.3 $6.6 Northwest 4,139,66 5.2% 5,981 $9.12 $6. South Central 1,434,649 7.% 15,52 $17.73 $8.28 Southeast 9,565,951 5.9% 134,33 193,6 $11.65 $8.33 Southwest 272,66 2.8% 23,383 $11.73 Round Rock 3,66,469 8.4% 21,71 8,34 $7.56 $6.24 AUSTIN TOTALS 45,454,617 6.8% 171,666 369,94 $7.8 $11.76 $6.84 *Rental rates reflect asking $psf/year MF = Manufacturing OS = Office Service/Flex W/D = Warehouse/Distribution Key Lease Transactions Q1 216 PROPERTY SF TENANT TRANSACTION TYPE SUBMARKET Heritage Crossing 126,782 LKQ Corporation Lease Round Rock NorhTech 6 111,3 Unknown Lease Northwest Heritage Crossing 1 95,672 Goodwill Industries Lease Round Rock Harris Ridge 5 54,46 Sheri Hill Lease Northeast Key Sales Transactions Q1 216 PROPERTY SF SELLER/BUYER PRICE / $PSF SUBMARKET Parmer Business Park 257, RREEF/Eurus Capital Partners Undisclosed Far Northwest Stock Building Supply 241,564 Capital Comm Invest./JLM Financial Undisclosed Southeast Bergstrom Technology Center 24,346 DivcoWest/Capital Comm Invest. Undisclosed Southeast Wall St & Burleson Rd Portfolio 163,63 Industry Capital/Saber Realty Partners $13,55, / $83 Southeast/Northeast Cushman & Wakefield / Oxford Commercial 2 W. Cesar Chavez Street Suite 25 www.oxfordcommercial.com Jeff Graves, Director of GIS and Research Tel: +1 512 474 24 jgraves@oxfordcommercial.com Oxford Commercial is an independently owned and operated member of the Cushman & Wakefield Alliance. Through the Alliance, Oxford clients benefit from seamless access to the global Cushman & Wakefield (C&W) platform. Cushman & Wakefield advises and represents clients on all aspects of property occupancy and investment. The firm s 43, employees in more than 6 countries provide deep local and global insights that create significant value for occupiers and investors around the world. It offers a complete range of services to its occupier and investor clients for all property types, including leasing, sales and acquisitions, equity, debt and structured finance, corporate finance and investment banking, appraisal, consulting, corporate services, and property, facilities, project and risk management. For further information, please visit our website, www.oxfordcommercial.com or follow @OxfordCRE. Copyright 216 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy. Alliance firms are independently owned and operated.
Industrial Snapshot Q4 215 AUSTIN INDUSTRIAL Economic Indicators Q4 14 Q4 15 Employment 927k 955k Unemployment 3.7% 3.1% U.S. Unemployment 5.7% 5.% Market Indicators (Overall, All Product Types) 214 215 Vacancy 8.7% 6.1% Net Absorption (sf) 1.1M 1.8M Under Construction (sf) 329k 347k Average Asking Rent* $9.12 $9.94 *Rental rates reflect gross asking $psf/year Overall Net Absorption/Asking Rent 4Q TRAILING AVERAGE 5 3 1-1 21 211 212 213 214 215 $1 $9 $8 $7 $6 $5 Economy The fourth quarter of 215 marked another consecutive quarter that the unemployment rate ranked as one of the lowest amongst the 5 largest metropolitan areas, coming in at 3.1% (as of December 215). The local unemployment rate also remains ahead of both the Texas rate of 4.6% and the national rate of 5.%. Additionally, the MSA continues to be a major job producer, adding more than 32, jobs to the area between October 214 to October 215 (U.S. Bureau of Labor Statistics). continues to be at the top of the list of fastest growing cities. According to Forbes.com, ranks number one in net in-migration population out of the 53 largest U.S. metro areas. This influx of new residents to the area is due in large part to low unemployment rates and strong job growth, indicating an extremely healthy economy. Market Overview The Industrial market recorded 385,165 square feet (sf) of overall absorption during Q4 215. This number brought the 215 year-to-date total of overall absorption to more than 1.7 million sf. The Northeast (NE) submarket experienced the strongest amount of absorption, recording 139,63 sf of overall absorption. Vacancy rates in the market continued their decline, as the overall vacancy decreased to 6.1% compared to 6.9% in Q3 215. Continued strong absorption rates coupled with low vacancy rates continue to raise average asking net rental rates. The average net rental rate for all property types rose to $9.94 per square foot (psf) for Q4 215, an increase of $.1 psf from Q3 215. Additionally, office service property types reported a significant increase, jumping $.24 psf from the previous quarter to an average rental rate of $11.4 psf. Net Absorption, SF (thousands) Asking Rent, $ PSF Overall Vacancy 2% 17% 15% 12% 1% Historical Average = 12% 7% 5% 2% 211 212 213 214 215 Outlook The market continues to sizzle as more and more companies move or expand into the area. Demand for qualified employees has led to a surge in population, record low unemployment rates and increased job growth across the greater region. As population grows, need for both warehouse/ distribution and flex space will increase. Additionally, office service flex space continues to be a go-to, cost effective alternative for traditional office users looking to expand. This demand will most likely continue to push these rates even higher until developers catch up with demand and increase inventory. In the meantime, we can expect to see higher rental rates and lower vacancy rates across most submarkets.
Industrial Snapshot Q4 215 SUBMARKET TOTAL BLDGS INVENTORY OVERALL VACANCY RATE YTD NET OVERALL ABSORPTION UNDER CNSTR (MF) DIRECT WEIGHTED (OS) (W/D) Central 1 18,9.% Far Northwest 55 4,48,259.7% 29,893 $9. $5.16 North Central 151 9,635,628 2.8% 241,699 $13.56 Northeast 163 12,96,327 12.6% 449,72 153, $11.28 $6.36 Northwest 63 4,139,66 5.9% 36,7 $9.24 South Central 42 1,434,649 3.9% (9,782) $16.56 $7.2 Southeast 12 9,484,835 5.6% 533,976 193,6 $12. $8.64 Southwest 8 272,66 16.5% (9,5) $13.56 Round Rock 6 3,66,469 6.7% 319,199 $9.12 $6. AUSTIN TOTALS 663 45,169,333 6.1% 1,771,257 346,6 - $11.4 $6.48 *Rental rates reflect asking $psf/year MF = Manufacturing OS = Office Service/Flex W/D = Warehouse/Distribution Key Lease Transactions 215 PROPERTY SF TENANT TRANSACTION TYPE SUBMARKET Braker 12 126,75 Active Power Renewal North Central Expo 8 122,4 Novitex Lease Southeast 98 Metric 117, Image Microsystems Renewal Northwest Tuscany 5 17,933 Ginny s Copying Service Renewal Northeast Key Sales Transactions 215 PROPERTY SF SELLER/BUYER PRICE / $PSF SUBMARKET One83 Office Park 935,255 JLM Financial Investments/ IDM Capital Undisclosed Northeast Northpointe Trade Center 45,15 Exeter/ADIA JV PSP Investments $2,178,533 / $45 Northeast 215 Gracy Farms Lane 384,174 Cornerstone Real Estate Advisors $51,, / $133 Northeast 15833 Long Vista Drive 372,66 JV Global Logistic Properties $27,849,878 / $75 Northeast Cushman & Wakefield / Oxford Commercial 2 W. Cesar Chavez Street Suite 25 www.oxfordcommercial.com Jeff Graves, Director of GIS and Research Tel: +1 512 474 24 jgraves@oxfordcommercial.com Oxford Commercial is an independently owned and operated member of the Cushman & Wakefield Alliance. Through the Alliance, Oxford clients benefit from seamless access to the global Cushman & Wakefield (C&W) platform. Cushman & Wakefield advises and represents clients on all aspects of property occupancy and investment. The firm s 43, employees in more than 6 countries provide deep local and global insights that create significant value for occupiers and investors around the world. It offers a complete range of services to its occupier and investor clients for all property types, including leasing, sales and acquisitions, equity, debt and structured finance, corporate finance and investment banking, appraisal, consulting, corporate services, and property, facilities, project and risk management. For further information, please visit our website, www.oxfordcommercial.com or follow @OxfordCRE. Copyright 216 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy. Alliance firms are independently owned and operated.
Industrial Snapshot Q3 215 AUSTIN Economic Indicators Market Indicators Net Absorption/Asking Rent 4Q TRAILING AVERAGE 5, 3, 1, AUSTIN INDUSTRIAL Overall Vacancy Q3 14 Q3 15 Employment 919k 946k Unemployment 4.% 3.2% U.S. Unemployment 6.1% 5.1% Q3 14 Q3 15 Overall Vacancy 9.4% 6.9% Net Absorption 16k 535k Under Construction 439k 392k Overall Average Asking Rent $9. $9.84-1, $5 21 211 212 213 214 Q3 215 22% 18% 14% 1% 6% Net Absorption, SF Historical Average = 13% Asking Rent, $ PSF 2% 21 211 212 213 214 Q3 215 $1 $9 $8 $7 $6 Economy The MSA continues to lead both state and national averages in unemployment levels. For the third quarter of 215 the local unemployment rate was recorded at 3.2%, lower than both the Texas rate of 4.4% and the national unemployment rate of 5.1%. Additionally continues to rank first among the largest fifty metropolitan areas in the U.S. with the lowest unemployment rates. In addition, observed job creation continued to occur as 16,275 jobs were created through the city from August 215 to August 215. The city s ability to both maintain low unemployment rates in addition to effectively generate jobs indicate a strong and healthy local economy. Market Overview The industrial market experienced 535,22 square feet (sf) of positive absorption during the third quarter of 215. This quarter marked the tenth consecutive quarter of positive absorption in the industrial market, dating back to Q2 213. The Round Rock (RR) submarket experienced the highest absorption totals as 186,412 sf was absorbed during Q3. Strong absorption figures across the entire market led to the continued drop of overall vacancy. The overall vacancy rate for the third quarter was recorded at 6.9%, down 1.7 percentage point from the 8.6% vacancy rate recorded in the second quarter. Low vacancy and strong absorption figures have contributed to an expected rise in rental rates. The average direct rental rate recorded for all property types rose to $9.84 per square foot (psf), up $.84 psf from the recorded rent during the second quarter. Additionally, the average rental rate for office service property types increased to $11.16 psf, up from $11.4 psf during the second quarter. Outlook As vacancy continues to tighten throughout the industrial market, it is highly likely that rents across all property types will approach record highs rates. In particular, there is a high probability that office service rates maintain their sharp increase. This is due to the fact that they both provide a more cost effective type of space for traditional office tenants and that there is little inventory of this product type in many development pipelines. With these spaces at such a premium, it is possible many developments will shift towards the addition of more office service options to the industrial market as a whole. www.cushmanwakefield.com
Industrial Snapshot Q3 215 AUSTIN SUBMARKET TOTAL BLDGS INVENTORY OVERALL VACANCY RATE YTD NET OVERALL ABSORPTION UNDER CNSTR (MF) (OS) (W/D) Central 2 18,9.% Far Northwest 55 4,48,259.1% 213,396 $8.4 North Central 15 9,725,621 3.7% 161,996 $5.4 $13.44 $5.64 Northeast 163 12,96,327 13.6% 31,639 153, $11.28 $6.24 Northwest 63 4,139,66 6.5% 12,821 $9.12 South Central 42 1,434,649 3.9% (5,654) $16.56 $7.2 Southeast 12 9,394,842 4.5% 424,845 239,25 $1.8 $7.8 Southwest 8 272,66 17.6% (12,5) $13.44 Round Rock 61 3,659,314 6.9% 28,549 $9.48 $6. AUSTIN TOTALS 664 45,222,178 6.9% 1,386,92 392,25 $5.4 $11.16 $6.36 *Rental rates reflect asking $psf/year MF = Manufacturing OS = Office Service/Flex W/D = Warehouse/Distribution Key Lease Transactions Q3 215 PROPERTY SF TENANT PROPERTY TYPE SUBMARKET Vista Park 57,75 Kodiak Assembly Solutions Warehouse/Distribution Round Rock Prologis Corridor Park 7 57,6 Capitol Beverage Warehouse/Distribution Round Rock Excel Filter Inc. 57,6 Expo 12 Warehouse/Distribution Southeast The Liquidation Channel 55, Corridor Park Pointe E Office Service/Flex Round Rock Key Sales Transactions Q3 215 PROPERTY SF SELLER/BUYER PROPERTY TYPE PRICE SUBMARKET One83 Office Park 935,255 JLM Financial Investments/ IDM Capital Office Service/Flex Undisclosed Northeast 31 West Howard Lane 292, Karlin Real Estate/Casa Marco Warehouse/Distribution Undisclosed Northeast About Cushman & Wakefield Cushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way people work, shop, and live. The firm s 43, employees in more than 6 countries provide deep local and global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield is among the largest commercial real estate services firms in the world with revenues of $5 billion across core services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global occupier services, investment management (branded DTZ Investors), tenant representation and valuations & advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter. Director Name Title Address Line 1 Address Line 2 Tel: + Fax: + first.last@cushwake.com Copyright 215 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy. Alliance firms are independently owned and operated. www.cushmanwakefield.com
SF 172,8 263,155 452,341 89,6 psf/yr MARKETBEAT INDUSTRIAL SNAPSHOT AUSTIN, TX A Cushman & Wakefield Research Publication Q2 215 ECONOMIC OVERVIEW The MSA continues to lead both state and national averages in unemployment levels. For the second quarter, the local unemployment level was recorded at 3.1%, ahead of both the Texas and U.S. unemployment rates of 4.1% and 5.3% respectively (U.S. Bureau of Labour and Statistics). These low unemployment numbers are especially impressive, when considering that 32, jobs were created from May 214 to May 215. has warranted much national attention for the ability to maintain low unemployment rates amongst the city s current population boom. A large portion of the job growth and generation can be attributed to the rapidly expanding and burgeoning technology sector, placing as a new powerhouse on the national tech landscape. VACANCY RATES BEGIN TO DECLINE experienced 558,22 square feet (sf) of direct absorption across all industrial property types during Q2 215. Q2 215 and marked the ninth consecutive quarter of positive direct absorption for the total market, dating back to Q2 213. The Southeast (SE) submarket posted the highest levels of absorption for Q2 215, recording 365,512 sf of absorption. The Northeast (NE) submarket also reported a strong quarter of activity experiencing 253,996 sf of direct absorption. The strong absorption activity in the NE and SE submarkets contributed to a drop in overall vacancy during this time. The overall vacancy rate dropped to 8.6% from 9.6% recorded last quarter. Similarly the largest industrial submarkets, the SE and NE, reported low overall vacancy rates of 4.7% and 14.8%, respectively. FLEX/ R&D RATES CONTINUE TO RISE The average direct asking rental rate recorded for all industrial property types was $9.36 per square foot (psf) for Q2 215, 4.% higher than the average rental rate of $9. psf in Q2 214. Rental rates for Flex/R&D properties experienced an increase on a quarterto-quarter basis, climbing to $11.4 psf, $.12 psf higher than the Q2 215 of $1.92 psf. High increases in Flex/ R&D rates were observed in the South Central (SC) submarket, and once again in the North Central (NC) submarket, which has experienced consistent quarterly escalations in psf rent averages. OUTLOOK The industrial market continues to operate in optimal conditions throughout the MSA. Many landlords continue to report both low vacancies in, Flex/ R&D and Warehouse/ Distribution property types. Recent construction has remained focused on generating large vacant blocks for users needing traditional Warehouse/ Distribution spaces. However the recent trend of extremely high demand for Flex/ R&D properties, combined with the inflated rates these spaces are quoting, create a landscape in which these property types might yield the greatest returns for both developers and landlords. Such situations could lead to many groups kicking off new construction for Flex/ R&D projects. Additionally, the case and need for these types of value-office properties is especially strong as a result of an office market which continues to tighten in vacancy and post historically high rental rates. The existing circumstances will likely contribute to an evolving industrial real estate market in the city as whole. STATS ON THE GO Q2 214 Q2 215 Y-O-Y CHANGE Overall Vacancy 9.8% 8.6% -1.2 pp Direct Asking Rents (psf/yr) $9. $9.36 4.% YTD Direct Absorption (sf) 48,839 757,749 85.3% OVERALL RENTAL VS. OVERALL RATES $12. $1. $8. $6. $4. $2. NEW SUPPLY 5, 25, 211 212 213 214 Q2 215 OVERALL RENT OVERALL VACANCY 12 MONTH FORECAST 2.% 15.% 1.% 5.%.% 211 212 213 214 YTD 215 Cushman & Wakefield Oxford Commercial 2 W. Cesar Chavez St. Suite 25, TX 7871 www.cushmanwakefield.com/knowledge Richard Whiteley, Research Analyst +1 (512) 474 24 richardw@oxfordcommercial.com The market terms and definitions in this report are based on NAIOP standards. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. 215 Cushman & Wakefield, Inc. All rights reserved. 1
AUSTIN, TX SUBMARKET INVENTORY OVERALL VACANCY RATE YTD USER SALES ACTIVITY UNDER CONSTRUCTION YTD CONSTRUCTION COMPLETIONS YTD DIRECT NET ABSORPTION YTD OVERALL NET ABSORPTION AVERAGE NET RENTAL RATE MF R/D W/D Central 18,9.% Far Northwest 4,48,259 4.4% 55,227 55,227 $12.12 $5.16 North Central 9,725,621 6.% 55,77 55,77 $5.4 $12.48 $6.36 Northeast 12,96,327 14.8% 32,64 153,6 89,6 218,178 247,178 $11.16 $6.24 Northwest 4,139,66 7.% (2,971) (2,971) $9.36 South Central 1,434,649 4.% (7,378) (7,378) $16.56 $7.2 Southeast 9,223,111 4.7% 239,25 353,599 416,922 $1.32 $7.8 Southwest 272,66 16.2% 19,15 (8,75) (8,75) $13.32 Round Rock 3,578,3 13.1% 94,137 94,137 $8.76 $6.12 TOTALS 44,969,433 8.6% 32,64 411,955 89.6 757,749 85,872 $5.4 $11.4 $6.24 * RENTAL RATES REFLECT ASKING $PSF/YEAR MF = MANUFACTURING R/D = RESEARCH/DEVELOPMENT W/D = WAREHOUSE/DISTRIBUTION MARKET HIGHLIGHTS SIGNIFICANT Q2 215 LEASE TRANSACTIONS SUBMARKET TENANT PROPERTY TYPE SQUARE FEET Expo 8 SE Novatex Warehouse/Distribution 122,4 Expo 11 SE Kendra Scott Design Manufacturing 64,8 Corridor Park Pointe E* RR Flight Director Flex/R&D 61,766 SIGNIFICANT Q2 215 SALE TRANSACTIONS SUBMARKET BUYER PURCHASE PRICE / $PSF SQUARE FEET 215 Gracy Farms Lane NC Cornersone RE Advisers Undisclosed 381,62 1331 McCallen Pass NE General Motors Undisclosed 32,64 3912-392 Gattis School Road RR Longview Equity Partners Undisclosed 16,971 SIGNIFICANT Q2 215 CONSTRUCTION COMPLETIONS SUBMARKET MAJOR TENANT COMPLETION DATE BUILDING SQUARE FEET (% LEASED) Tuscany 9 NE Speculative Q2 215 89,6 (%) SIGNIFICANT PROJECTS UNDER CONSTRUCTION SUBMARKET MAJOR TENANT COMPLETION DATE BUILDING SQUARE FEET (% LEASED) Harris Ridge Business Center- Building 5 NE Speculative Q1 216 153, (%) Expo Center 11 SE Kendra Scott Design Q4 215 13,2 (5%) Expo Center 1 SE Speculative Q4 215 19,23 (%) *RENEWAL- NOT INCLUDED IN LEASING STATISTICS Cushman & Wakefield Oxford Commercial 2 W. Cesar Chavez St. Suite 25, TX 7871 www.cushmanwakefield.com/knowledge Richard Whiteley, Research Analyst +1 (512) 474 24 richardw@oxfordcommercial.com The market terms and definitions in this report are based on NAIOP standards. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. 215 Cushman & Wakefield, Inc. All rights reserved. 2