The CoStar Office Report. M i d - Y e a r San Antonio Office Market

The CoStar Office Report M i d - Y e a r 2 0 1 5

Mid-Year 2015 San Antonio Table of Contents Table of Contents................................................................. A Methodology...................................................................... B Terms & Definitions................................................................ C Market Highlights & Overview........................................................ 1 CoStar Markets & Submarkets........................................................ 4 Inventory & Development Analysis..................................................... 5 Inventory & Development Analysis Select Top Deliveries Select Top Under Construction Properties Figures at a Glance................................................................. 9 Figures at a Glance by Class & Market Figures at a Glance by Class & Submarket Figures at a Glance Grouped by CBD vs Suburban Historical Figures at a Glance Leasing Activity Analysis............................................................ 15 Select Top Lease Transactions Analysis of Individual CoStar Submarket Clusters........................................ 17 Atascosa County Market Bandera County Market CBD Market Comal County Market Guadalupe County Market Kendall County Market Medina County Market North Central Market Northeast Market Northwest Market South Market Wilson County Market 2015 CoStar Group, Inc. The CoStar Office Report A

San Antonio Mid-Year 2015 Methodology The CoStar Office Report, 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 national database includes approximately 80.7 billion square feet of coverage in 3.5 million properties. All rental rates reported in the CoStar Office Report have been converted to a Full Service equivalent rental rate. For information on subscribing to CoStar s other products and services, please contact us at 1-877-7COSTAR, or visit our web site at www.costar.com Copyright 2015 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. 1331 L ST NW Washington, DC 20005 (800) 204-5960 www.costar.com NASDAQ: CSGP B The CoStar Office Report 2015 CoStar Group, Inc.

Mid-Year 2015 San Antonio Terms & Definitions Availability 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 command 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-ofa-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 buildings 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 certificate 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. : 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 insurance. 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 warehousing, 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 committed 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 2015 CoStar Group, Inc. The CoStar Office Report C

San Antonio Mid-Year 2015 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, financial, 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 particular 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 delineate 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) designations refer to a particular geographic area within a metropolitan statistical area (MSA). Suburban is defined as including all office inventory not located in the CBD. (See also: CBD) Tenancy: A term used to indicate whether or not a building is occupied 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. 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 calculated 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 The CoStar Office Report 2015 CoStar Group, Inc.

Overview Mid-Year 2015 San Antonio San Antonio s Decreases to 10.2% Net Absorption Positive 216,677 SF in the Quarter The San Antonio Office market ended the second quarter 2015 with a vacancy rate of 10.2%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 216,677 square feet in the second quarter. Vacant sublease space decreased in the quarter, ending the quarter at 122,964 square feet. Rental rates ended the second quarter at $19.86, an increase over the previous quarter. A total of three buildings delivered to the market in the quarter totaling 97,969 square feet, with 964,134 square feet still under construction at the end of the quarter. Absorption Net absorption for the overall San Antonio office market was positive 216,677 square feet in the second quarter 2015. That compares to positive 217,001 square feet in the first quarter 2015, positive 98,352 square feet in the fourth quarter 2014, and positive 763,753 square feet in the third quarter 2014. Tenants moving out of large blocks of space in 2015 include: Allstate Insurance moving out of 75,046 square feet at Oaks at University Business Park - Building 1; City of San Antonio moving out of 51,040 square feet at 7461 Callaghan Rd; and USAA Real Estate Company moving out of 43,702 square feet at Colonnade Centre. Tenants moving into large blocks of space in 2015 include: Oracle America, Inc. moving into 35,364 square feet at The Spectrum Building; Law Offices of Davidson & Troilo moving into 21,664 square feet at The Pyramid Building; and Frost & Sullivan moving into 21,117 square feet at Northwest Center. The Class-A office market recorded net absorption of positive 102,018 square feet in the second quarter 2015, compared to positive 95,789 square feet in the first quarter 2015, positive 92,703 in the fourth quarter 2014, and positive 336,049 in the third quarter 2014. The Class-B office market recorded net absorption of positive 98,723 square feet in the second quarter 2015, compared to positive 95,744 square feet in the first quarter 2015, positive 61,521 in the fourth quarter 2014, and positive 423,995 in the third quarter 2014. The Class-C office market recorded net absorption of positive 15,936 square feet in the second quarter 2015 compared to positive 25,468 square feet in the first quarter 2015, negative (55,872) in the fourth quarter 2014, and positive 3,709 in the third quarter 2014. Net absorption for San Antonio s central business district was positive 18,300 square feet in the second quarter 2015. That compares to positive 7,245 square feet in the first quarter 2015, negative (12,983) in the fourth quarter 2014, and positive 39,172 in the third quarter 2014. Net absorption for the suburban markets was positive 198,377 square feet in the second quarter 2015. That compares to positive 209,756 square feet in first quarter 2015, positive 111,335 in the fourth quarter 2014, and positive 724,581 in the third quarter 2014. The office vacancy rate in the San Antonio market area decreased to 10.2% at the end of the second quarter 2015. The vacancy rate was 10.4% at the end of the first quarter 2015, 10.4% at the end of the fourth quarter 2014, and 10.4% at the end of the third quarter 2014. Rates by Class 2005-2015 A B C Total Market 25% 20% Rate 15% 10% 5% 0% 2005 3q 2006 3q 2007 3q 2008 3q 2009 3q 2010 3q 2011 3q 2012 3q 2013 3q 2014 3q 2015 CoStar Group, Inc. The CoStar Office Report 1

San Antonio Mid-Year 2015 Overview Class-A projects reported a vacancy rate of 14.4% at the end of the second quarter 2015, 14.7% at the end of the first quarter 2015, 14.3% at the end of the fourth quarter 2014, and 14.1% at the end of the third quarter 2014. Class-B projects reported a vacancy rate of 10.1% at the end of the second quarter 2015, 10.3% at the end of the first quarter 2015, 10.5% at the end of the fourth quarter 2014, and 10.6% at the end of the third quarter 2014. Class-C projects remained unchanged over the past three quarters. The overall vacancy rate in San Antonio s central business district at the end of the second quarter 2015 decreased to 14.0%. The vacancy rate was 14.2% at the end of the first quarter 2015, 14.3% at the end of the fourth quarter 2014, and 14.2% at the end of the third quarter 2014. The vacancy rate in the suburban markets decreased to 9.6% in the second quarter 2015. The vacancy rate was 9.8% at the end of the first quarter 2015, 9.8% at the end of the fourth quarter 2014, and 9.8% at the end of the third quarter 2014. Largest Lease Signings The largest lease signings occurring in 2015 included: the 57,000-square-foot lease signed by The Bank of San Antonio at 1900 NW Loop 410 in the Northwest market; the 44,115- square-foot deal signed by iheartmedia, Inc. at 200 E Basse Road in the North Central market; and the 27,789-squarefoot lease signed by BSG at One Technology Center in the Northwest market. Sublease The amount of vacant sublease space in the San Antonio market decreased to 122,964 square feet by the end of the second quarter 2015, from 195,333 square feet at the end of the first quarter 2015. There was 157,945 square feet vacant at the end of the fourth quarter 2014 and 145,182 square feet at the end of the third quarter 2014. U.S. Comparison Past 8 Quarters Rate 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% San Antonio United States 2013 3q San Antonio s Class-A projects reported vacant sublease space of 90,170 square feet at the end of second quarter 2015, down from the 119,242 square feet reported at the end of the first quarter 2015. There were 86,238 square feet of sublease space vacant at the end of the fourth quarter 2014, and 73,423 square feet at the end of the third quarter 2014. Class-B projects reported vacant sublease space of 24,794 square feet at the end of the second quarter 2015, down from the 68,091 square feet reported at the end of the first quarter 2015. At the end of the fourth quarter 2014 there were 63,707 square feet, and at the end of the third quarter 2014 there were 63,759 square feet vacant. Class-C projects reported no vacant sublease space from the first quarter 2015 to the second quarter 2015. Sublease vacancy went from 8,000 square feet to 8,000 square feet during that time. There were 8,000 square feet at the end of the fourth quarter 2014, and 8,000 square feet at the end of the third quarter 2014. Sublease vacancy in San Antonio s central business district stood at 4,764 square feet at the end of the second quarter 2015. It was 4,764 square feet at the end of the first quarter 2015, 9,063 square feet at the end of the fourth quarter 2014, and 9,876 square feet at the end of the third quarter 2014. Sublease vacancy in the suburban markets ended the second quarter 2015 at 118,200 square feet. At the end of the first quarter 2015 sublease vacancy was 190,569 square feet, was 148,882 square feet at the end of the fourth quarter 2014, and was 135,306 square feet at the end of the third quarter 2014. Rental Rates The average quoted asking rental rate for available office space, all classes, was $19.86 per square foot per year at the end of the second quarter 2015 in the San Antonio market area. This represented a 1.3% increase in quoted rental rates from the end of the first quarter 2015, when rents were reported at $19.61 per square foot. The average quoted rate within the Class-A sector was $23.06 at the end of the second quarter 2015, while Class-B rates stood at $18.95, and Class-C rates at $16.34. At the end of the first quarter 2015, Class-A rates were $22.86 per square foot, Class-B rates were $18.76, and Class-C rates were $15.78. The average quoted asking rental rate in San Antonio s CBD was $19.83 at the end of the second quarter 2015, and $19.87 in the suburban markets. In the first quarter 2015, quoted rates were $19.54 in the CBD and $19.62 in the suburbs. Deliveries and Construction During the second quarter 2015, three buildings totaling 97,969 square feet were completed in the San Antonio market area. This compares to three buildings totaling 193,780 square feet that were completed in the first quarter 2015, two build- 2 The CoStar Office Report 2015 CoStar Group, Inc.

Overview Mid-Year 2015 San Antonio ings totaling 133,015 square feet completed in the fourth quarter 2014, and 533,891 square feet in 12 buildings completed in the third quarter 2014. There were 964,134 square feet of office space under construction at the end of the second quarter 2015. Some of the notable 2015 deliveries include: 9500 Westover Hills Blvd, a 180,000-square-foot facility that delivered in first quarter 2015 and is now 100% occupied, and The Oaks @ University Business Park - Building II, an 80,569-square-foot building that delivered in second quarter 2015 and is now 49% occupied. The largest projects underway at the end of second quarter 2015 were 19026 Ridgewood Parkway, a 147,000-squarefoot building with 25% of its space pre-leased, and WestRidge Two at La Cantera, a 129,015-square-foot facility that is 0% pre-leased. Inventory Total office inventory in the San Antonio market area amounted to 71,719,057 square feet in 3,529 buildings as of the end of the second quarter 2015. The Class-A office sector consisted of 13,906,113 square feet in 102 projects. There were 1,461 Class-B buildings totaling 41,975,747 square feet, and the Absorption & Deliveries Past 8 Quarters 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 0.18 0.19 0.29 Net Absorption 0.11 0.03 0.25 0.41 0.16 0.76 0.53 Deliveries 0.13 0.10 0.22 0.22 0.19 2013 3q Class-C sector consisted of 15,837,197 square feet in 1,966 buildings. Within the Office market there were 154 owner-occupied buildings accounting for 5,912,143 square feet of office space. Reports compiled by: Stacy Harrison, CoStar Research Manager 0.10 2015 CoStar Group, Inc. The CoStar Office Report 3

San Antonio Mid-Year 2015 Markets CoStar Submarket Clusters & Submarkets In 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. Submarket Clusters Atascosa County Bandera County CBD Comal County Guadalupe County Kendall County Medina County North Central Northeast Northwest South Wilson County Submarkets Atascosa County Bandera County CBD* Comal County Guadalupe County Kendall County Medina County Far North Central North Central Northeast Far Northwest Far West Northwest South Wilson County * Submarkets comprising the CBD. For statistics reference the CBD vs Suburban Figures at a Glance Page. 4 The CoStar Office Report 2015 CoStar Group, Inc.

Inventory & development Mid-Year 2015 San Antonio Historical Deliveries 1982-2015 4.5 4.0 4.0 4.1 3.7 Deliveries Average Delivered SF 3.5 3.3 Millions of SF 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2.8 2.7 2.2 1.9 1.7 1.5 1.2 1.2 1.4 1.3 1.1 0.9 0.8 0.9 1.0 1.0 0.6 0.5 0.6 0.6 0.7 0.7 0.7 0.7 0.4 0.4 0.4 0.2 0.1 0.1 1982 1986 1990 1994 1998 2002 2006 2010 2014 * Future deliveries based on current under construction buildings. Construction Activity Markets Ranked by Under Construction Square Footage Under Construction Inventory Average Bldg Size Market # Bldgs Total RBA Preleased SF Preleased % All Existing U/C Northwest 13 525,577 120,885 23.0% 28,944 40,429 North Central 8 431,557 69,078 16.0% 19,450 53,945 Northeast 1 7,000 4,200 60.0% 19,996 7,000 Wilson County 0 0 0 0.0% 5,004 0 Bandera County 0 0 0 0.0% 2,695 0 CBD 0 0 0 0.0% 31,417 0 Atascosa County 0 0 0 0.0% 7,203 0 South 0 0 0 0.0% 10,942 0 Comal County 0 0 0 0.0% 7,648 0 Guadalupe County 0 0 0 0.0% 6,618 0 All Other 0 0 0 0.0% 5,173 0 Totals 22 964,134 194,163 20.1% 20,323 43,824 Recent Deliveries Leased & Un-Leased SF in Deliveries Since 2011 Future Deliveries Preleased & Un-Leased SF in Properties Scheduled to Deliver 1.4 Leased Un-Leased 500 Preleased Un-Leased 1.2 450 400 Millions of SF 1.0 0.8 0.6 0.4 Thousands of SF 350 300 250 200 150 T 0.2 100 50 0.0 2011 2013 2015 0 2015 3q 2016 1q 2015 CoStar Group, Inc. The CoStar Office Report 5

San Antonio Mid-Year 2015 Inventory & development Historical Construction Starts & Deliveries Square Footage Per Quarter Starting and Completing Construction Millions of SF 0.6 0.5 0.4 0.3 0.2 0.1 0.11 0.31 0.13 0.13 0.07 0.42 Construction Starts 0.46 0.39 0.24 0.18 0.36 0.05 0.09 0.19 0.50 0.11 0.27 0.25 0.22 0.16 Deliveries 0.53 0.32 0.140.13 0.200.19 0.13 0.10 0.0 2012 1q 2013 1q 2014 1q 2015 1q 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 4 31,180 14,747 47.3% $20.56 0 31,180 50,000 SF - 99,999 SF 1 80,569 39,479 49.0% $0.00 0 80,569 100,000 SF - 249,999 SF 1 180,000 180,000 100.0% $0.00 180,000 0 250,000 SF - 499,999 SF 0 0 0 0.0% $0.00 0 0 >= 500,000 SF 0 0 0 0.0% $0.00 0 0 Recent Development by Tenancy Comparison Based on RBA Developed for Single & Multi Tenant Use Based on Total RBA 2015 Deliveries Currently Under Construction By Class By Space Type 4% 22% 24% 62% 38% 19% 96% 59% 76% Multi Single Multi Single Class A Class B Class C Multi Single 6 The CoStar Office Report 2015 CoStar Group, Inc.

Inventory & development Mid-Year 2015 San Antonio 2015 CoStar Group, Inc. The CoStar Office Report 7

San Antonio Mid-Year 2015 Inventory & development 8 The CoStar Office Report 2015 CoStar Group, Inc.

Figures at a Glance Mid-Year 2015 San Antonio Class A Market Statistics Mid-Year 2015 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Atascosa County 0 0 0 0 0.0% 0 0 0 $0.00 Bandera County 0 0 0 0 0.0% 0 0 0 $0.00 CBD 9 2,235,478 254,814 258,765 11.6% (2,306) 0 0 $24.93 Comal County 2 192,838 90,686 90,686 47.0% 0 0 0 $16.12 Guadalupe County 0 0 0 0 0.0% 0 0 0 $0.00 Kendall County 0 0 0 0 0.0% 0 0 0 $0.00 Medina County 0 0 0 0 0.0% 0 0 0 $0.00 North Central 43 5,390,852 504,600 538,118 10.0% 60,714 0 309,000 $25.10 Northeast 8 951,090 267,458 272,481 28.6% 1,989 0 0 $25.21 Northwest 39 5,055,855 800,338 848,016 16.8% 133,595 260,569 230,196 $21.77 South 1 80,000 0 0 0.0% 3,815 0 0 $17.12 Wilson County 0 0 0 0 0.0% 0 0 0 $0.00 Totals 102 13,906,113 1,917,896 2,008,066 14.4% 197,807 260,569 539,196 $23.06 Class B Market Statistics Mid-Year 2015 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Atascosa County 17 196,257 15,672 15,672 8.0% 0 0 0 $21.00 Bandera County 4 10,644 0 0 0.0% 0 0 0 $0.00 CBD 88 4,731,703 938,706 939,519 19.9% 13,985 0 0 $18.67 Comal County 125 1,215,548 120,152 120,152 9.9% (8,466) 0 0 $18.90 Guadalupe County 29 297,928 12,653 12,653 4.2% 6,380 0 0 $15.35 Kendall County 63 505,622 49,140 49,140 9.7% 16,858 0 0 $22.40 Medina County 8 37,485 0 0 0.0% 0 0 0 $0.00 North Central 485 10,631,595 938,354 947,347 8.9% 68,207 13,780 122,557 $20.59 Northeast 87 3,500,204 219,490 219,490 6.3% 21,968 0 7,000 $18.39 Northwest 485 19,308,227 1,700,866 1,711,478 8.9% 86,313 17,400 295,381 $18.12 South 62 1,502,982 199,683 204,059 13.6% (13,278) 0 0 $18.90 Wilson County 8 37,552 5,832 5,832 15.5% 2,500 0 0 $15.07 Totals 1,461 41,975,747 4,200,548 4,225,342 10.1% 194,467 31,180 424,938 $18.95 2015 CoStar Group, Inc. The CoStar Office Report 9

San Antonio Mid-Year 2015 Figures at a Glance Class C Market Statistics Mid-Year 2015 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Atascosa County 28 127,897 43,215 43,215 33.8% 1,587 0 0 $19.50 Bandera County 11 29,778 1,040 1,040 3.5% 2,129 0 0 $0.00 CBD 200 2,363,638 111,015 111,015 4.7% 13,866 0 0 $17.99 Comal County 120 480,561 14,994 14,994 3.1% 8,345 0 0 $15.11 Guadalupe County 53 244,737 13,336 13,336 5.4% (1,100) 0 0 $12.63 Kendall County 61 213,672 9,368 9,368 4.4% (6,298) 0 0 $18.79 Medina County 54 205,457 11,610 11,610 5.7% 700 0 0 $10.57 North Central 516 4,283,763 225,973 225,973 5.3% 23,975 0 0 $16.25 Northeast 239 2,227,224 213,589 213,589 9.6% 30,072 0 0 $16.16 Northwest 467 4,319,661 274,823 282,823 6.5% (38,274) 0 0 $16.80 South 193 1,218,220 130,911 130,911 10.7% 6,202 0 0 $14.29 Wilson County 24 122,589 11,550 11,550 9.4% 200 0 0 $13.33 Totals 1,966 15,837,197 1,061,424 1,069,424 6.8% 41,404 0 0 $16.34 Total Office Market Statistics Mid-Year 2015 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Atascosa County 45 324,154 58,887 58,887 18.2% 1,587 0 0 $19.91 Bandera County 15 40,422 1,040 1,040 2.6% 2,129 0 0 $0.00 CBD 297 9,330,819 1,304,535 1,309,299 14.0% 25,545 0 0 $19.83 Comal County 247 1,888,947 225,832 225,832 12.0% (121) 0 0 $17.38 Guadalupe County 82 542,665 25,989 25,989 4.8% 5,280 0 0 $13.95 Kendall County 124 719,294 58,508 58,508 8.1% 10,560 0 0 $21.73 Medina County 62 242,942 11,610 11,610 4.8% 700 0 0 $10.57 North Central 1,044 20,306,210 1,668,927 1,711,438 8.4% 152,896 13,780 431,557 $21.45 Northeast 334 6,678,518 700,537 705,560 10.6% 54,029 0 7,000 $20.42 Northwest 991 28,683,743 2,776,027 2,842,317 9.9% 181,634 277,969 525,577 $19.29 South 256 2,801,202 330,594 334,970 12.0% (3,261) 0 0 $16.73 Wilson County 32 160,141 17,382 17,382 10.9% 2,700 0 0 $14.84 Totals 3,529 71,719,057 7,179,868 7,302,832 10.2% 433,678 291,749 964,134 $19.86 10 The CoStar Office Report 2015 CoStar Group, Inc.

Figures at a Glance Mid-Year 2015 San Antonio Class A Submarket Statistics Mid-Year 2015 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Atascosa County 0 0 0 0 0.0% 0 0 0 $0.00 Bandera County 0 0 0 0 0.0% 0 0 0 $0.00 CBD 9 2,235,478 254,814 258,765 11.6% (2,306) 0 0 $24.93 Comal County 2 192,838 90,686 90,686 47.0% 0 0 0 $16.12 Far North Central 12 1,467,255 110,292 112,555 7.7% 17,697 0 147,000 $28.87 Far Northwest 4 656,106 0 0 0.0% 0 0 129,015 $22.60 Far West 10 1,044,032 114,691 115,091 11.0% 171,136 180,000 101,181 $19.60 Guadalupe County 0 0 0 0 0.0% 0 0 0 $0.00 Kendall County 0 0 0 0 0.0% 0 0 0 $0.00 Medina County 0 0 0 0 0.0% 0 0 0 $0.00 North Central 31 3,923,597 394,308 425,563 10.8% 43,017 0 162,000 $24.47 Northeast 8 951,090 267,458 272,481 28.6% 1,989 0 0 $25.21 Northwest 25 3,355,717 685,647 732,925 21.8% (37,541) 80,569 0 $21.79 South 1 80,000 0 0 0.0% 3,815 0 0 $17.12 Wilson County 0 0 0 0 0.0% 0 0 0 $0.00 Totals 102 13,906,113 1,917,896 2,008,066 14.4% 197,807 260,569 539,196 $23.06 Class B Submarket Statistics Mid-Year 2015 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Atascosa County 17 196,257 15,672 15,672 8.0% 0 0 0 $21.00 Bandera County 4 10,644 0 0 0.0% 0 0 0 $0.00 CBD 88 4,731,703 938,706 939,519 19.9% 13,985 0 0 $18.67 Comal County 125 1,215,548 120,152 120,152 9.9% (8,466) 0 0 $18.90 Far North Central 128 2,673,166 237,711 242,489 9.1% 47,664 0 54,217 $21.58 Far Northwest 28 423,701 11,070 11,070 2.6% 2,500 0 0 $22.85 Far West 48 3,193,194 112,529 112,529 3.5% 6,482 15,000 35,390 $18.22 Guadalupe County 29 297,928 12,653 12,653 4.2% 6,380 0 0 $15.35 Kendall County 63 505,622 49,140 49,140 9.7% 16,858 0 0 $22.40 Medina County 8 37,485 0 0 0.0% 0 0 0 $0.00 North Central 357 7,958,429 700,643 704,858 8.9% 20,543 13,780 68,340 $20.29 Northeast 87 3,500,204 219,490 219,490 6.3% 21,968 0 7,000 $18.39 Northwest 409 15,691,332 1,577,267 1,587,879 10.1% 77,331 2,400 259,991 $18.06 South 62 1,502,982 199,683 204,059 13.6% (13,278) 0 0 $18.90 Wilson County 8 37,552 5,832 5,832 15.5% 2,500 0 0 $15.07 Totals 1,461 41,975,747 4,200,548 4,225,342 10.1% 194,467 31,180 424,938 $18.95 2015 CoStar Group, Inc. The CoStar Office Report 11

San Antonio Mid-Year 2015 Figures at a Glance Class C Submarket Statistics Mid-Year 2015 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Atascosa County 28 127,897 43,215 43,215 33.8% 1,587 0 0 $19.50 Bandera County 11 29,778 1,040 1,040 3.5% 2,129 0 0 $0.00 CBD 200 2,363,638 111,015 111,015 4.7% 13,866 0 0 $17.99 Comal County 120 480,561 14,994 14,994 3.1% 8,345 0 0 $15.11 Far North Central 27 186,470 12,446 12,446 6.7% 2,592 0 0 $16.02 Far Northwest 40 177,944 1,400 1,400 0.8% 8,257 0 0 $22.59 Far West 23 537,638 6,350 6,350 1.2% (4,102) 0 0 $19.37 Guadalupe County 53 244,737 13,336 13,336 5.4% (1,100) 0 0 $12.63 Kendall County 61 213,672 9,368 9,368 4.4% (6,298) 0 0 $18.79 Medina County 54 205,457 11,610 11,610 5.7% 700 0 0 $10.57 North Central 489 4,097,293 213,527 213,527 5.2% 21,383 0 0 $16.26 Northeast 239 2,227,224 213,589 213,589 9.6% 30,072 0 0 $16.16 Northwest 404 3,604,079 267,073 275,073 7.6% (42,429) 0 0 $16.70 South 193 1,218,220 130,911 130,911 10.7% 6,202 0 0 $14.29 Wilson County 24 122,589 11,550 11,550 9.4% 200 0 0 $13.33 Totals 1,966 15,837,197 1,061,424 1,069,424 6.8% 41,404 0 0 $16.34 Total Office Submarket Statistics Mid-Year 2015 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Atascosa County 45 324,154 58,887 58,887 18.2% 1,587 0 0 $19.91 Bandera County 15 40,422 1,040 1,040 2.6% 2,129 0 0 $0.00 CBD 297 9,330,819 1,304,535 1,309,299 14.0% 25,545 0 0 $19.83 Comal County 247 1,888,947 225,832 225,832 12.0% (121) 0 0 $17.38 Far North Central 167 4,326,891 360,449 367,490 8.5% 67,953 0 201,217 $23.11 Far Northwest 72 1,257,751 12,470 12,470 1.0% 10,757 0 129,015 $22.62 Far West 81 4,774,864 233,570 233,970 4.9% 173,516 195,000 136,571 $19.04 Guadalupe County 82 542,665 25,989 25,989 4.8% 5,280 0 0 $13.95 Kendall County 124 719,294 58,508 58,508 8.1% 10,560 0 0 $21.73 Medina County 62 242,942 11,610 11,610 4.8% 700 0 0 $10.57 North Central 877 15,979,319 1,308,478 1,343,948 8.4% 84,943 13,780 230,340 $21.08 Northeast 334 6,678,518 700,537 705,560 10.6% 54,029 0 7,000 $20.42 Northwest 838 22,651,128 2,529,987 2,595,877 11.5% (2,639) 82,969 259,991 $18.93 South 256 2,801,202 330,594 334,970 12.0% (3,261) 0 0 $16.73 Wilson County 32 160,141 17,382 17,382 10.9% 2,700 0 0 $14.84 Totals 3,529 71,719,057 7,179,868 7,302,832 10.2% 433,678 291,749 964,134 $19.86 12 The CoStar Office Report 2015 CoStar Group, Inc.

Figures at a Glance Mid-Year 2015 San Antonio Class A Market Statistics Mid-Year 2015 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates CBD 9 2,235,478 254,814 258,765 11.6% (2,306) 0 0 $24.93 Suburban 93 11,670,635 1,663,082 1,749,301 15.0% 200,113 260,569 539,196 $22.84 Totals 102 13,906,113 1,917,896 2,008,066 14.4% 197,807 260,569 539,196 $23.06 Class B Market Statistics Mid-Year 2015 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates CBD 88 4,731,703 938,706 939,519 19.9% 13,985 0 0 $18.67 Suburban 1,373 37,244,044 3,261,842 3,285,823 8.8% 180,482 31,180 424,938 $19.01 Totals 1,461 41,975,747 4,200,548 4,225,342 10.1% 194,467 31,180 424,938 $18.95 Class C Market Statistics Mid-Year 2015 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates CBD 200 2,363,638 111,015 111,015 4.7% 13,866 0 0 $17.99 Suburban 1,766 13,473,559 950,409 958,409 7.1% 27,538 0 0 $16.07 Totals 1,966 15,837,197 1,061,424 1,069,424 6.8% 41,404 0 0 $16.34 Class A & B Market Statistics Mid-Year 2015 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates CBD 97 6,967,181 1,193,520 1,198,284 17.2% 11,679 0 0 $20.06 Suburban 1,466 48,914,679 4,924,924 5,035,124 10.3% 380,595 291,749 964,134 $20.45 Totals 1,563 55,881,860 6,118,444 6,233,408 11.2% 392,274 291,749 964,134 $20.38 Total Office Market Statistics Mid-Year 2015 YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates CBD 297 9,330,819 1,304,535 1,309,299 14.0% 25,545 0 0 $19.83 Suburban 3,232 62,388,238 5,875,333 5,993,533 9.6% 408,133 291,749 964,134 $19.87 Totals 3,529 71,719,057 7,179,868 7,302,832 10.2% 433,678 291,749 964,134 $19.86 2015 CoStar Group, Inc. The CoStar Office Report 13

San Antonio Mid-Year 2015 Figures at a Glance 14 The CoStar Office Report 2015 CoStar Group, Inc.

Leasing Activity Mid-Year 2015 San Antonio Historical Rental Rates Based on Full-Service Equivalent Rental Rates A B C Total Market $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 2005 3q 2006 3q 2007 3q 2008 3q 2009 3q 2010 3q 2011 3q 2012 3q 2013 3q 2014 3q by Available Space Type by Class Percent of All Vacant Space in Direct vs. Sublet Percent of All Vacant Space by Class San Antonio United States San Antonio United States 2% 4% 15% 16% 58% 27% 49% 35% 98% 96% Direct Sublet Direct Sublet Class A Class B Class C Class A Class B Class C U.S. Rental Rate Comparison Based on Full-Service Equivalent Rental Rates Future Space Available Space Scheduled to be Available for Occupancy* $25.00 San Antonio United States 0.5 0.5 0.47 0.43 $20.00 0.4 0.4 $15.00 $10.00 0.3 0.3 0.2 0.2 0.15 $5.00 0.1 $0.00 2013 3q 2014 3q 0.1 0.0 0.00 0.00 0.00 2015 3q 2016 1q 2016 3q * Includes Under Construction Spaces 2015 CoStar Group, Inc. The CoStar Office Report 15

San Antonio Mid-Year 2015 Leasing Activity Select Top Oce Leases Based on Leased Square Footage For Deals Signed in 2015 Building Submarket SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company 1 1900 NW Loop 410 Northwest 57,000 2nd The Bank of San Antonio N/A N/A 2 200 E Basse Rd North Central 44,115 1st iheartmedia, Inc. N/A N/A 3 Castle Hills Executive Plaza Northwest 34,796 2nd N/A N/A Stream Realty Partners-Central Texa 4 One Technology Center* Northwest 27,789 1st BSG The Weitzman Group Kennedy Wilson 5 One Alamo Center CBD 22,308 1st Catto & Catto N/A Stream Realty Partners-Central Texa 6 The Pyramid Building North Central 21,664 1st Law Oces of Davidson & Troilo CBRE Endura Advisory Group 7 Northwest Center* Northwest 21,117 2nd Frost & Sullivan N/A Peloton Commercial Real Estate 8 Abilene Building Northwest 20,400 2nd N/A N/A Magi RE Services 9 The Spectrum Building North Central 18,106 2nd N/A N/A Peloton Commercial Real Estate 10 Callaghan Tower Northwest 16,550 1st CeloNova N/A REOC San Antonio 11 6243 W Interstate 10 Northwest 14,325 2nd N/A Direct Deal Travis Commercial Real Estate Servi 12 Commons at Concord Park - Bldg 3 Far North Central 14,058 1st N/A N/A CBRE 13 2821 Guadalupe St* Northwest 13,875 1st Texas Department of Criminal Justice Direct Deal Direct Deal 14 Legacy Oaks Tower Northwest 12,755 1st N/A N/A CBRE 15 422 E Ramsey Rd North Central 10,000 1st N/A N/A Colglazier Properties 16 Callaghan Tower Northwest 8,616 1st REOC San Antonio N/A REOC San Antonio 17 The Court Building CBD 8,505 1st GDC Marketing & Ideation N/A N/A 18 The Court Building CBD 8,505 1st GDC Marketing & Ideation N/A N/A 19 200 E Basse Rd North Central 8,474 2nd N/A N/A Endura Advisory Group 20 Plaza Las Campanas (Oce Bldg A) North Central 8,132 1st Silverback GFR Development Service REOC San Antonio 21 Callaghan Tower Northwest 7,779 2nd Brain Sentinel Direct Deal REOC San Antonio 22 TETCO Center North Central 6,955 1st INSURICA Insurance Management Network Colliers International Reata Real Estate Services, L.P. 23 Uptown Square North Central 6,580 1st Pilgrim Mortgage Llc N/A CBRE 24 6243 W Interstate 10 Northwest 6,573 2nd N/A Direct Deal Travis Commercial Real Estate Servi 25 Highpoint Tower II Northwest 6,345 2nd N/A N/A Red Rock 26 Northbrook Business Center - Bldg 400 North Central 6,316 2nd N/A N/A Stream Realty Partners-Central Texa 27 Huebner Medical Center Northwest 5,836 1st N/A N/A Equity 28 Sonterra Oce Park North Central 5,683 2nd N/A N/A Endura Advisory Group 29 Concord Plaza North Central 5,661 2nd N/A N/A Endura Advisory Group 30 One International Centre North Central 5,614 2nd N/A N/A Stream Realty Partners-Central Texa 31 Chase Center Oak Park North Central 5,513 1st N/A N/A HPI Real Estate Services & Investme 32 Colonnade Centre Northwest 5,510 2nd N/A N/A Travis Commercial Real Estate Servi 33 One International Centre North Central 5,443 2nd N/A N/A Stream Realty Partners-Central Texa 34 Renaissance Plaza North Central 5,295 2nd N/A N/A CBRE 35 One Countryside Place North Central 5,277 2nd Centrylink Newmark Grubb Knight Frank Cushman & Wakefield SA Commercial A 36 One Alamo Center CBD 5,112 1st N/A N/A Stream Realty Partners-Central Texa 37 John Yantis Center North Central 5,000 2nd N/A N/A Endura Advisory Group 38 Forest Oaks Financial Center Northeast 4,995 1st In Home Care, Inc N/A PF Properties LLC * Renewal 16 The CoStar Office Report 2015 CoStar Group, Inc.

Deliveries, Absorption & A t a s c o s a C o u n t y M a r k e t Market Highlights Class A, B & C Mid-Year 2015 San Antonio 0.080 0.060 0.040 0.020 0.000 (0.020) (0.040) Delivered SF Absorption SF 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Percent Vacant Vacant Space Quoted Rental Rates 0.07 Direct SF Sublet SF $30.00 0.06 $25.00 0.05 0.04 0.03 0.02 0.01 Dollars/SF/Year $20.00 $15.00 $10.00 $5.00 0.00 $0.00 Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2015 2q 45 324,154 58,887 18.2% 1,587 0 0 0 0 $19.91 2015 1q 45 324,154 60,474 18.7% 0 0 0 0 0 $19.91 2014 4q 45 324,154 60,474 18.7% (28,974) 0 0 0 0 $0.00 2014 3q 45 324,154 31,500 9.7% (6,000) 0 0 0 0 $21.00 2014 2q 45 324,154 25,500 7.9% 1,350 0 0 0 0 $21.00 2014 1q 45 324,154 26,850 8.3% 59,672 2 63,672 0 0 $26.00 2013 4q 43 260,482 22,850 8.8% 0 0 0 2 63,672 $30.00 2013 3q 43 260,482 22,850 8.8% 0 0 0 2 63,672 $24.65 2013 2q 43 260,482 22,850 8.8% 14,756 2 14,756 2 63,672 $24.65 2013 1q 41 245,726 22,850 9.3% 21,151 1 42,415 3 65,756 $17.20 2012 4q 40 203,311 1,586 0.8% 12,627 1 14,213 3 100,171 $17.14 2012 3q 39 189,098 0 0.0% 13,416 0 0 3 107,628 $13.09 2012 2q 39 189,098 13,416 7.1% 3,036 0 0 2 56,628 $12.73 2012 1q 39 189,098 16,452 8.7% 5,000 0 0 1 14,213 $12.73 2011 4q 39 189,098 21,452 11.3% 2,900 0 0 0 0 $12.73 2011 3q 39 189,098 24,352 12.9% (9,551) 0 0 0 0 $0.00 2015 CoStar Group, Inc. The CoStar Office Report 17

San Antonio Mid-Year 2015 Deliveries, Absorption & B a n d e r a C o u n t y M a r k e t Market Highlights Class A, B & C 0.004 0.003 0.002 0.001 0.000 (0.001) (0.002) (0.003) (0.004) Delivered SF Absorption SF 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Percent Vacant Vacant Space Quoted Rental Rates 0.00 Direct SF Sublet SF $1.00 $0.90 0.00 $0.80 0.00 0.00 0.00 0.00 0.00 Dollars/SF/Year $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 0.00 $0.00 Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2015 2q 15 40,422 1,040 2.6% 0 0 0 0 0 $0.00 2015 1q 15 40,422 1,040 2.6% 2,129 0 0 0 0 $0.00 2014 4q 15 40,422 3,169 7.8% 0 0 0 0 0 $0.00 2014 3q 15 40,422 3,169 7.8% (2,129) 0 0 0 0 $0.00 2014 2q 15 40,422 1,040 2.6% (1,040) 0 0 0 0 $0.00 2014 1q 15 40,422 0 0.0% 0 0 0 0 0 $0.00 2013 4q 15 40,422 0 0.0% 0 0 0 0 0 $11.86 2013 3q 15 40,422 0 0.0% 0 0 0 0 0 $11.86 2013 2q 15 40,422 0 0.0% 2,956 0 0 0 0 $11.86 2013 1q 15 40,422 2,956 7.3% (2,956) 0 0 0 0 $11.86 2012 4q 15 40,422 0 0.0% 0 0 0 0 0 $0.00 2012 3q 15 40,422 0 0.0% 0 0 0 0 0 $0.00 2012 2q 15 40,422 0 0.0% 1,800 0 0 0 0 $16.46 2012 1q 15 40,422 1,800 4.5% 0 0 0 0 0 $16.46 2011 4q 15 40,422 1,800 4.5% 1,550 0 0 0 0 $16.46 2011 3q 15 40,422 3,350 8.3% (100) 0 0 0 0 $16.55 18 The CoStar Office Report 2015 CoStar Group, Inc.

Deliveries, Absorption & C B D M a r k e t Market Highlights Class A, B & C Mid-Year 2015 San Antonio 0.200 0.150 0.100 0.050 0.000 (0.050) (0.100) (0.150) (0.200) (0.250) (0.300) Delivered SF Absorption SF 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2013 2q 2013 3q 2013 4q 2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 17.0% 16.5% 16.0% 15.5% 15.0% 14.5% 14.0% 13.5% 13.0% 12.5% Percent Vacant Vacant Space Quoted Rental Rates 1.50 Direct SF Sublet SF $20.60 $20.40 1.45 $20.20 1.40 1.35 1.30 1.25 Dollars/SF/Year $20.00 $19.80 $19.60 $19.40 $19.20 $19.00 1.20 $18.80 Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2015 2q 297 9,330,819 1,309,299 14.0% 18,300 0 0 0 0 $19.83 2015 1q 297 9,330,819 1,327,599 14.2% 7,245 0 0 0 0 $19.54 2014 4q 297 9,330,819 1,334,844 14.3% (12,983) 0 0 0 0 $19.85 2014 3q 297 9,330,819 1,321,861 14.2% 39,172 0 0 0 0 $20.40 2014 2q 297 9,330,819 1,361,033 14.6% 166,011 2 52,223 0 0 $19.42 2014 1q 295 9,278,596 1,474,821 15.9% (75,494) 0 0 2 52,223 $19.40 2013 4q 295 9,278,596 1,399,327 15.1% (27,151) 0 0 2 52,223 $19.23 2013 3q 295 9,278,596 1,372,176 14.8% 99,968 0 0 2 52,223 $19.53 2013 2q 295 9,278,596 1,472,144 15.9% 30,544 0 0 0 0 $19.10 2013 1q 295 9,278,596 1,502,688 16.2% 1,052 0 0 0 0 $19.13 2012 4q 295 9,278,596 1,503,740 16.2% 53,711 0 0 0 0 $19.16 2012 3q 295 9,278,596 1,557,451 16.8% 6,074 1 12,000 0 0 $19.65 2012 2q 295 9,268,530 1,553,459 16.8% (240,019) 0 0 1 12,000 $18.72 2012 1q 295 9,268,530 1,313,440 14.2% 4,273 0 0 1 12,000 $18.61 2011 4q 295 9,268,530 1,317,713 14.2% 71,436 1 19,536 0 0 $18.76 2011 3q 294 9,248,994 1,369,613 14.8% 39,953 0 0 1 19,536 $19.40 2015 CoStar Group, Inc. The CoStar Office Report 19