2nd QUARTER

The East LBJ Corridor Sub-Market is defined geographically as the area that is bordered by Midway Road to the West, Forest Lane to the South, TI Boulevard to the East, and Alpha Road to the North. This analysis is focused on Class A and B office buildings that are existing or under construction and contain a minimum of 50,000 rentable square feet. The LBJ Corridor is one of the last remaining safe havens for companies that are seeking rent relief. With submarkets like Central Expressway and the Lower Tollway experiencing 10-12% vacancy rates, the East LBJ Corridor has a vacancy rate of just below 25%. We expect this to change drastically in 2017 with companies fleeing surrounding submarkets for the best valued office space in the entire DFW- Metroplex. The LBJ Corridor Sub-Market witnessed a slight decrease in the Direct Class A vacancy from 23.2% at the end of the first quarter of 2016 to 22.4% at the end of the first quarter in 2017. Average full-service rental rates of Class A space increased per square foot, from $26.55 to $27.41 per square foot, during the same timeframe. Class A direct net absorption sits at 28,905 SF, while Class B absorption is approximately -66,523 square feet. Meanwhile, Direct Class B vacancy is down from 28.6% to 25.9%, with full-service rental rates increasing from $18.83 per square foot to $19.57 per square foot.

TOTAL NET ABSORPTION (past 12 months)

DELIVERED (past 12 months)

2017 157,353 SF 2017 0 SF

2016 75,102 SF 2016 0 SF

DIRECT FULL SERVICE RENTAL RATE (Q2)

DIRECT VACANCY (Q2)

2017 $24.02 PSF 2017 23.2%

2016 $23.07 PSF 2016 24.8%

DIRECT VACANCY BY CLASS (Q2)

Class A 22% Class B 26%

Advisory Experience

Taylor Dickerson Senior Advisor

tdickerson@citadelpartnersus.com 214-420-316

2nd QUARTER INSIGHT East LBJ Corridor

Advisory Experience

Maxim – 700,000 SF

The Domain, Austin, TX – 70 Acres Weaver – 58,000 SF

Knoll Trail Plaza – 120,000 SF Build-to-Suit

Weaver – 171,000 SF Multi-market Texas Instruments – 1,200,000 SF

Invensys – 45,000 SF Sublease

Texas Instruments – 70.537 Acres with a 441,362 SF Semiconductor

Flextronics – 1,500,000 SF

ESI – 70,000 SF

TECHNOLOGY LEASE

MULTIPLE LOCATIONS

DISPOSITION

ADAPTIVE REUSE OFFICE LEASE

This document has been prepared by Citadel Partners, LLC. for advertising and general information only. Citadel Partners, LL C. makes no guarantees, representations or warranties of any kind, expressed or implied,

regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Citadel Partners, LLC.

excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This

publication is the copyrighted property of Citadel Partners, LLC. and/or their licensor(s). All rights reserved.

Sub-Market Momentum & Forecast

Absorption / Deliveries / Vacancy (All Classes)

Office Sub-Market Highlights

Office Sub-Market Momentum & Forecast

East LBJ News

Total Office Sub-Market Q2 Statistics

2017 Y-T-D SUB-MARKET HIGHLIGHTS

Lease Rates – Full Service (All Classes)

Internet marketing firm to relocate co-headquarters into Dallas' Galleria Towers

Internet marketing agency Ansira Partners plans to move one of its two co-headquarters to the Galleria Towers in North Texas, which recently underwent a significant $19 million renovation. Ansira Partners, which is a data-driven agency, has signed a lease for 88,084 square feet at Three Galleria Tower at 13155 Noel Road in Dallas. The agency has been growing rapidly for the last several years and was looking for a locale to help them recruit and retain top talent in the region. The $19 million renovation gave the Galleria Towers - a three-building, 1.4 million-square-foot office complex and a new shine that has convinced some companies to expand

operations at the property (like Amazon.com's significant expansion, doubling its footprint) and to relocate to the towers (like Kimley-Horn's relocation). The details of Ansira Partners' move into the property was not immediately available on Wednesday morning. The marketing agency will relocate from its office along the Dallas North Tollway in Addison. Dallas Business Journal 5.3.17

citadelpartnersus.com

Top Leases (2017-to-Date) Tenant Size

Churchill Tower CDM Smith 19,716 SF

Hidden Grove at 12404 Park Central Studio Movie Grill 20,200 SF

Churchill Tower LaLa U.S., Inc. 21,388 SF

Two Galleria Tower Kimley-Horn 45,646 SF

Hidden Grove at 12404 Park Central Mercer 57,215 SF

Park Central 7 Daisy Brand 82,876 SF

The LBJ Corridor submarket remains as one of best valued submarkets for the corporate user located in the Metroplex today. While nearby markets like the Central Expressway and the Lower Tollway have experienced historical rent growth and unprecedented vacancies, The LBJ Corridor possesses the highest vacancy percentage of any major submarket, at approximately 24.2%. This is largely due to the lack of nearby retail amenities and the outdated nature of several of the office buildings. We fully expect for the LBJ market to experience a resurgence in 2017 as companies in nearby submarkets feel the squeeze of $30 per square foot rental rates.

Market

Existing Inventory Vacancy YTD Net Absorption

YTD Deliveries

Under Const SF

Quoted Rates

# Blds Total RBA Direct SF Total SF Vac %

Central Expressway 273 15,138,655 1,488,574 1,522,347 10.1% (21,167) 0 0 $26.76

Dallas CBD 142 33,673,630 7,253,908 7,463,095 22.2% 46,078 92,237 261,400 $25.30

East Dallas 1,138 13,811,706 1,017,410 1,034,262 7.5% 327,684 8,964 307,320 $23.97

Far North Dallas 1,078 58,461,548 7,066,096 7,626,740 13.0% 1,077,183 1,427,136 6,096,673 $27.55

Ft Worth CBD 115 11,799,154 1,089,624 1,162,940 9.9% 80,968 0 280,489 $25.90

Las Colinas 433 39,798,523 5,319,979 5,765,069 14.5% 783,960 888,242 845,749 $25.03

LBJ Freeway 265 22,597,412 4,760,091 5,002,276 22.1% (34,659) 0 0 $21.83

Lewisville/Denton 914 13,056,352 956,073 1,093,533 8.4% (87,630) 69,817 157,154 $22.38

Mid-Cities 2,578 40,307,595 5,271,188 5,351,672 13.3% (139,772) 448,075 752,298 $21.73

North Fort Worth 570 6,591,010 337,939 397,694 6.0% 45,818 46,320 67,003 $21.33

Northeast Ft Worth 338 5,403,275 1,924,221 1,939,206 35.9% 7,546 0 0 $19.19

Preston Center 147 5,889,257 471,433 505,502 8.6% (15,430) 4,506 179,617 $36.52

Richardson/Plano 1,371 40,752,851 6,155,829 6,249,010 15.3% (8,030) 230,489 866,960 $24.20

South Ft Worth 1,638 19,857,571 1,578,525 1,637,187 8.2% 17,573 210,649 170,594 $23.29

Southwest Dallas 798 7,263,160 535,091 537,091 7.4% 76,085 9,288 65,300 $18.47

Stemmons Freeway 284 15,173,102 3,279,010 3,348,540 22.1% 108,906 72,630 0 $16.75

Uptown/Turtle Creek 297 14,705,980 1,342,973 1,575,801 10.7% 136,852 200,000 1,315,778 $37.17

Totals 12,379 364,280,781 49,847,964 52,211,965 14.3% 2,401,965 3,708,353 11,366,335 $24.64

$15.00

$17.00

$19.00

$21.00

$23.00

$25.00

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q22017

10.00%

12.00%

14.00%

16.00%

18.00%

20.00%

22.00%

24.00%

26.00%

28.00%

-1,000,000

-500,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q22017

Total Net Absorption RBA Delivered Direct Vacant %

Sub-Market Momentum & Forecast

Absorption / Deliveries / Vacancy (All Classes)

Office Sub-Market Highlights

Office Sub-Market Momentum & Forecast

East LBJ News

Total Office Sub-Market Q2 Statistics

2017 Y-T-D SUB-MARKET HIGHLIGHTS

Lease Rates – Full Service (All Classes)

Internet marketing firm to relocate co-headquarters into Dallas' Galleria Towers

Internet marketing agency Ansira Partners plans to move one of its two co-headquarters to the Galleria Towers in North Texas, which recently underwent a significant $19 million renovation. Ansira Partners, which is a data-driven agency, has signed a lease for 88,084 square feet at Three Galleria Tower at 13155 Noel Road in Dallas. The agency has been growing rapidly for the last several years and was looking for a locale to help them recruit and retain top talent in the region. The $19 million renovation gave the Galleria Towers - a three-building, 1.4 million-square-foot office complex and a new shine that has convinced some companies to expand

operations at the property (like Amazon.com's significant expansion, doubling its footprint) and to relocate to the towers (like Kimley-Horn's relocation). The details of Ansira Partners' move into the property was not immediately available on Wednesday morning. The marketing agency will relocate from its office along the Dallas North Tollway in Addison. Dallas Business Journal 5.3.17

citadelpartnersus.com

Top Leases (2017-to-Date) Tenant Size

Churchill Tower CDM Smith 19,716 SF

Hidden Grove at 12404 Park Central Studio Movie Grill 20,200 SF

Churchill Tower LaLa U.S., Inc. 21,388 SF

Two Galleria Tower Kimley-Horn 45,646 SF

Hidden Grove at 12404 Park Central Mercer 57,215 SF

Park Central 7 Daisy Brand 82,876 SF

The LBJ Corridor submarket remains as one of best valued submarkets for the corporate user located in the Metroplex today. While nearby markets like the Central Expressway and the Lower Tollway have experienced historical rent growth and unprecedented vacancies, The LBJ Corridor possesses the highest vacancy percentage of any major submarket, at approximately 24.2%. This is largely due to the lack of nearby retail amenities and the outdated nature of several of the office buildings. We fully expect for the LBJ market to experience a resurgence in 2017 as companies in nearby submarkets feel the squeeze of $30 per square foot rental rates.

Market

Existing Inventory Vacancy YTD Net Absorption

YTD Deliveries

Under Const SF

Quoted Rates

# Blds Total RBA Direct SF Total SF Vac %

Central Expressway 273 15,138,655 1,488,574 1,522,347 10.1% (21,167) 0 0 $26.76

Dallas CBD 142 33,673,630 7,253,908 7,463,095 22.2% 46,078 92,237 261,400 $25.30

East Dallas 1,138 13,811,706 1,017,410 1,034,262 7.5% 327,684 8,964 307,320 $23.97

Far North Dallas 1,078 58,461,548 7,066,096 7,626,740 13.0% 1,077,183 1,427,136 6,096,673 $27.55

Ft Worth CBD 115 11,799,154 1,089,624 1,162,940 9.9% 80,968 0 280,489 $25.90

Las Colinas 433 39,798,523 5,319,979 5,765,069 14.5% 783,960 888,242 845,749 $25.03

LBJ Freeway 265 22,597,412 4,760,091 5,002,276 22.1% (34,659) 0 0 $21.83

Lewisville/Denton 914 13,056,352 956,073 1,093,533 8.4% (87,630) 69,817 157,154 $22.38

Mid-Cities 2,578 40,307,595 5,271,188 5,351,672 13.3% (139,772) 448,075 752,298 $21.73

North Fort Worth 570 6,591,010 337,939 397,694 6.0% 45,818 46,320 67,003 $21.33

Northeast Ft Worth 338 5,403,275 1,924,221 1,939,206 35.9% 7,546 0 0 $19.19

Preston Center 147 5,889,257 471,433 505,502 8.6% (15,430) 4,506 179,617 $36.52

Richardson/Plano 1,371 40,752,851 6,155,829 6,249,010 15.3% (8,030) 230,489 866,960 $24.20

South Ft Worth 1,638 19,857,571 1,578,525 1,637,187 8.2% 17,573 210,649 170,594 $23.29

Southwest Dallas 798 7,263,160 535,091 537,091 7.4% 76,085 9,288 65,300 $18.47

Stemmons Freeway 284 15,173,102 3,279,010 3,348,540 22.1% 108,906 72,630 0 $16.75

Uptown/Turtle Creek 297 14,705,980 1,342,973 1,575,801 10.7% 136,852 200,000 1,315,778 $37.17

Totals 12,379 364,280,781 49,847,964 52,211,965 14.3% 2,401,965 3,708,353 11,366,335 $24.64

$15.00

$17.00

$19.00

$21.00

$23.00

$25.00

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q22017

10.00%

12.00%

14.00%

16.00%

18.00%

20.00%

22.00%

24.00%

26.00%

28.00%

-1,000,000

-500,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q22017

Total Net Absorption RBA Delivered Direct Vacant %

2nd QUARTER

The East LBJ Corridor Sub-Market is defined geographically as the area that is bordered by Midway Road to the West, Forest Lane to the South, TI Boulevard to the East, and Alpha Road to the North. This analysis is focused on Class A and B office buildings that are existing or under construction and contain a minimum of 50,000 rentable square feet. The LBJ Corridor is one of the last remaining safe havens for companies that are seeking rent relief. With submarkets like Central Expressway and the Lower Tollway experiencing 10-12% vacancy rates, the East LBJ Corridor has a vacancy rate of just below 25%. We expect this to change drastically in 2017 with companies fleeing surrounding submarkets for the best valued office space in the entire DFW- Metroplex. The LBJ Corridor Sub-Market witnessed a slight decrease in the Direct Class A vacancy from 23.2% at the end of the first quarter of 2016 to 22.4% at the end of the first quarter in 2017. Average full-service rental rates of Class A space increased per square foot, from $26.55 to $27.41 per square foot, during the same timeframe. Class A direct net absorption sits at 28,905 SF, while Class B absorption is approximately -66,523 square feet. Meanwhile, Direct Class B vacancy is down from 28.6% to 25.9%, with full-service rental rates increasing from $18.83 per square foot to $19.57 per square foot.

TOTAL NET ABSORPTION (past 12 months)

DELIVERED (past 12 months)

2017 157,353 SF 2017 0 SF

2016 75,102 SF 2016 0 SF

DIRECT FULL SERVICE RENTAL RATE (Q2)

DIRECT VACANCY (Q2)

2017 $24.02 PSF 2017 23.2%

2016 $23.07 PSF 2016 24.8%

DIRECT VACANCY BY CLASS (Q2)

Class A 22% Class B 26%

Advisory Experience

Taylor Dickerson Senior Advisor

tdickerson@citadelpartnersus.com 214-420-316

2nd QUARTER INSIGHT East LBJ Corridor

Advisory Experience

Maxim – 700,000 SF

The Domain, Austin, TX – 70 Acres Weaver – 58,000 SF

Knoll Trail Plaza – 120,000 SF Build-to-Suit

Weaver – 171,000 SF Multi-market Texas Instruments – 1,200,000 SF

Invensys – 45,000 SF Sublease

Texas Instruments – 70.537 Acres with a 441,362 SF Semiconductor

Flextronics – 1,500,000 SF

ESI – 70,000 SF

TECHNOLOGY LEASE

MULTIPLE LOCATIONS

DISPOSITION

ADAPTIVE REUSE OFFICE LEASE

This document has been prepared by Citadel Partners, LLC. for advertising and general information only. Citadel Partners, LL C. makes no guarantees, representations or warranties of any kind, expressed or implied,

regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Citadel Partners, LLC.

excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This

publication is the copyrighted property of Citadel Partners, LLC. and/or their licensor(s). All rights reserved.