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Metro: Austin

Copyright 2018 Reis, Inc.


ContentsReis Observer 2

Metro Trend Futures 11

New Construction Listing 13

Construction Deliveries14

Metro Construction Breakdown14

Submarket New Construction Project Tally14

Metro Inventory Details14

Inventory Growth Rankings Forecast15

Construction/Absorption Change15

Metro Area Map15

New Construction Listing17

Sales Trend 29

Activity30

Map30

Most Recent Transactions30

Comparable Group Details32

Reis Observer

Reis Observer AUSTIN

1

Published December 11, 2017 THE ECONOMY

Metro Austin continues to run out of housing and workers, limiting its employment growth based on the supply of workers, not the supply of jobs. According to Current Employment Statistics (CES) data from the U.S. Bureau of Labor Statistics (BLS), total non-farm payroll employment increased by 22,200 jobs (2.2%) from October 2016 to October 2017, down from a gain of 35,100 (3.6%) in the prior 12 months. The private sector increase was 19,200 (2.3%), down from an increase of 31,600 (3.9%). According to household-based data from the BLS, the labor force of metro Austin increased by 22,240 (2.0%) in the year to September, a healthy gain but only half the increase of 44,820 (4.2%) in the prior 12 months. Moody’s Economy.com reports the overall population increased 58,950 (2.8%) in the year to the third quarter of 2017, consistent with past large gains, with the number of households up 22,210 (2.8%). But household average income rose just 0.9% over a year, according to this source. Meanwhile, the National Association of Realtors reports that the median existing home sales price was $296,400 in the third quarter in metro Austin, up 4.4% from a year earlier and well above the U.S. average of $254,000, Dallas-Fort Worth at $249,000, Houston at $233,900, and San Antonio at $220,700. PricewaterhouseCoopers, however, doesn’t see the threat to growth that others do. “The annual Emerging Trends in Real Estate Report is out and Austin remains a hot spot for real estate investment—but another city has edged out the Texas capital in the No. 1 position,” the Austin Business Journal reported in October. “Austin’s secret sauce is that the workers are there,” particularly the young. “An added boost—there are more young people in the pipeline. In the next five years, the growth of population in the 15-34 year old age range is projected to increase by 2.6% across the U.S. In Austin, the number may grow dramatically more—some 20.0%, experts forecast.” “Austin is described along with Nashville and Charlotte as southern cities with a strong appeal to younger workers. Furthermore, Austin was also likened to Raleigh/Durham, North Carolina and Knoxville, Tennessee for providing a pipeline of talent from highly ranked universities.” Meanwhile, according to another Business Journal article, “there are about 39,500 job openings in the area during the most recent look.” “Registered nurse was the top posted occupation for September 2017—likely fueled by the new Dell Seton Medical Center teaching hospital—while computer systems analysts saw the largest year-to-year increase in postings for all occupations.”

Employment:

The BLS reports a seasonally unadjusted unemployment rate of 2.9% in September 2017 for the Austin-Round Rock MSA, down from 3.4% a year earlier.

Moody’s Economy.com reports

a third quarter 2017 average household income of $137,018 for the Austin MSA. Average household incomes of $147,921 and $142,523 are reported for the top metros in the nation and Southwest region, respectively.

Employment Growth:

Employment by Sector:

Reis ObserverDecember 11, 2017Prepared By Reis, Inc.

Powered By Reis Metro: AustinCustomerID:1016323

Copyright 2018 Reis, Inc. 1016323


2

Published December 11, 2017 According to CES data by sector, the Professional and Business Services

sector added no net jobs in the year to October 2017, down from a gain of 6,100 (3.7%) in the prior 12 months. Among the other office-based sectors, Financial Activities added just 100 jobs (0.2%), down from a gain of 3,500 (6.4%), and Information lost 1,200 jobs (4.2%), following a gain of 1,200 (4.4%). Most of the consumer-driven sectors added jobs, thanks to population growth. The institutional Education and Health Services sector was up 5,000 jobs (4.2%) in the year to October, Leisure and Hospitality added 6,000 (4.9%), and Other Services was up 900 (2.0%). The Retail Trade sector, however, lost 1,500 jobs (1.4%) despite gains of 600 jobs (2.9%) in the Food and Beverage Store industry, which includes supermarkets, and 700 (4.2%) in the big-box General Merchandise Stores industry. Among the industrial sectors, Construction and related was up 2,800 jobs (4.7%) in the year to October, and Manufacturing employment was also up 2,800 (5.1%) despite a decrease of 100 jobs in the locally important Computer and Electronic Product Manufacturing industry. Distribution is apparently expanding, however, as Wholesale Trade employment was up 3,500 jobs (7.1%) and Transportation and Utilities up 800 (4.4%). In addition to housing, rapid population growth is overwhelming metro Austin’s automobile-oriented transportation system. “The expansion of I-35 has morphed into an $8.1 billion plan that would add two managed toll lanes in both directions—similar to the ones that just opened on MoPac Expressway—but no extra free lanes,” according to the Business Journal. “The Texas Department of Transportation unveiled the plan…which would get rid of the highway’s upper deck in downtown Austin and instead stack three levels of roads with two lanes each on top of each other in what’s known as a ‘cantilever’ configuration.” “The so-called Capital Express project would stretch 33 miles along I-35, from RM 1431 in Williamson County in the north to Texas 45 Southeast near Hays County in the south.” OUTLOOK Moody’s Economy.com predicts that the local population will continue to soar by about 60,000 per year despite rising housing prices and traffic congestion. The number of households is forecast to rise by 116,910 in the five years from year-end 2016 to year-end 2021. But employment growth is expected to slow, from an average 38,700 (4.3%) per year from 2012 to 2016 to 21,900 (2.1%) per year from 2017 to 2021.





3

Published December 11, 2017 THE REAL ESTATE MARKET

OFFICE A new supply boom is preventing a decrease in vacancy in the 46.5-million-square-foot Austin general purpose, multi-tenant office market, but rent gains show the market is strong. Reis reports nearly 1.5 million square feet of new competitive space has been added in 2017 through October, with net absorption at nearly 1.1 million square feet. The October vacancy rate was 12.9%, unchanged since mid-year but up 40 basis points year-to-date. The third quarter Class A vacancy rate is 12.6%, little changed for the quarter and year-over-year, while the Class B/C rate is 13.6%, up 30 basis points over three months and 12 months. Nearly two-thirds of local space is Class A. An additional 186,400 square feet of new office space completed construction in November and December, leaving 2.86 million square feet under construction. Reis predicts the vacancy rate will end 2017 at 13.3% and then fall to 12.3% in 2021 as 2.9 million square feet of new space added is met by 3 million square feet of net absorption. With planned space waiting in the wings, the boom is expected to extend past 2021. Rents increased 0.5% by both measures in the third quarter to $30.88 psf asking and $25.10 psf effective. A one-penny asking rent gain in October lifted the year-to-date increase to 2.5% by both measures, and Reis predicts a solid gain of 3.2% for all of 2017. The Class A asking average was up 0.7% during the third quarter to $34.41 psf, while the Class B/C asking average was up 0.5% to $24.53 psf, up 2.1% and 2.3% from a year earlier. Overall rents are rising, in part, because a higher and higher share of the total inventory is Class A. Reis predicts average rents will rise 2.0% to 3.0% per year from 2018 to 2021, with large gains in years when more expensive new space completes construction. Cushman & Wakefield reports a vacancy rate of 10.5%, up from 8.8% a year

earlier, and an average asking rent of $36.71 psf, up from $34.00 psf. This source reports a lease by Facebook for 231,000 square feet during the quarter.

Special Real Estate Factors:

Office: “Austin’s red-hot

commercial real estate market means office tenants are paying rental rates similar to those found in some of the country’s priciest cities,” wrote the Austin Business Journal. “A tenant spending $5,000 per month for Class A office space can get 1,087 square feet in Austin. That trails only Boston (where you could afford 1,006 square feet); Washington, D.C. (849 square feet); San Francisco (803 square feet); and New York City (703 square feet). Austin is more expensive than places including Dallas (where you could afford 2,012 square feet at that price), Portland (1,789), and San Jose in the heart of Silicon Valley (1,250 square feet), CommercialCafe reports. Here’s a graphical look at the comparison: Put another way, if a startup executive wanted to give each of her 101 employees 151 square feet, she would need a 15,251-square-foot office. That would cost $841,855 a year in Austin for Class A space, versus $692,167 in Seattle, $436,102 in Nashville, or $321,949 in Kansas City.” “‘Significant leasing activity and expansion by blue-chip companies such as Google, Facebook, and Amazon reflect the ongoing confidence in the Austin office market,’ according to Cushman & Wakefield. ‘In addition, the market for younger startup companies is strong and healthy.’”





4

Published December 11, 2017 APARTMENT

The 198,350-unit metro Austin apartment market is expected to add the third-most apartments since 1990 in 2017, at about 8,500, according to Reis. By October, nearly 5,800 had completed construction, exceeding the 4,040 units of net absorption and increasing the vacancy rate 70 basis points year-to-date to a still-moderate 6.0%. The third quarter vacancy rate was 7.0% for Class A units, up 10 basis points over the period, and 4.3% for Class B/C units, up 20 basis points. Tenants may be upgrading: the Class A rate is up 50 basis points year-over-year, but the Class B/C rate is up 120 basis points with negative net absorption. The 312-unit Arrington Ridge completed construction in Round Rock in November, leaving just under 11,000 units under construction. Reis predicts the vacancy rate will peak at 6.8% in 2018, then fall back to around 6.0% as development slows. New supply and a preponderance of inventory in the Class A segment are lifting average rents. As of October, the average asking rent was up 4.8% year-to-date to $1,169 per month, and the average effective rent was up 5.9% to $1,094 per month. Gains of 5.9% and 6.9%, respectively, are forecast for 2017. Whereas the Class A asking average is up 3.8% year-over-year to $1,330 per month, however, the Class B/C average is up just 1.9% to $890 per month. As there is less new supply to pull up overall rents, Reis predicts rent gains will slow to around 2.0% per year starting in 2020. Tenants, it appears, are getting their money’s worth here. According to 2016 American Community Survey data from the U.S. Census

Bureau, the vacancy rate for all rental units in metro Austin, including units in small buildings, affordable housing, and rental one-family homes, was 6.5%, above the U.S. average of 5.9%, and the median gross rent was $1,184 per month, above the U.S. average of $981 per month. This source reports 37.9% of metro Austin renters paid 35.0% of their income or more in rent, compared with 40.7% for the U.S. as a whole.

Special Real Estate Factors: Continued

Apartment: The neighborhood between downtown and the UT campus “is expected to be the next locus of construction activity with the redevelopment of the former University Medical Center Brackenridge hospital and an ambitious creation of a proposed innovation district,” stated the Business Journal. “As the innovation district plans have coalesced, the private sector has moved ahead with plans for redeveloping properties in the general vicinity. Real estate blog Austin Towers recently reported that Trammell Crow Residential plans to build a 30-story tower at 700 E. 11th St. on the current site of the Texas Trucking Association building. The project would be an apartment under the banner of Trammell Crow Residential’s Alexan brand.”

“The Guthrie, a new multifamily project, is rising from the former site of Guthrie Lumber & Distribution near Gonzales and Tillery streets in a formerly rural area east of downtown Austin,” according to the Business Journal. “Argyle Residential, an affiliate of Austin-based Cypress Real Estate Advisors, has already broken ground on the 322-unit project, which will include a live-work element on a small parcel across the street from the larger development.” Argyle started developing the area early, noted this source, with three residential projects already completed on the East Side.





5

Published December 11, 2017 RETAIL

Retail development is limited in metro Austin when compared with the amount of housing and office space being built. The 952,175-square-foot first phase of the Stone Hill Town Center power center completed construction in Pflugerville in September, followed by 110,000 square feet of retail at the mixed-use The Summit at Rivery Park in Georgetown and 24,300 square feet at the mixed-use Covered Bridge Village in South Austin. That, however, left just two projects under construction, led by 743,415 square feet of retail at the mixed-use Kyle Crossing in Kyle. The 21.6-million-square-foot Austin community-neighborhood shopping center market is particularly quiet, with just 35,000 square feet of new space completed in 2017 through October and 61,000 square feet of net absorption. The October vacancy rate was just 5.3%, down 10 basis points year-to-date, with the average asking rent up 2.5% to $23.36 psf and the average effective rent up 2.5% to $21.27 psf. The other project under construction is the 75,000-square-foot Oak Meadows Marketplace neighborhood center in Georgetown. Reis predicts the vacancy rate will end 2017 at 5.2%, with rents up 2.7% asking and 2.9% effective for the year. The third quarter 2017 power center vacancy rate was 6.4%, according to Reis, up 40 basis points from prior quarter reporting but down 20 basis points year-over-year. The average asking rent for power centers is high at $29.38 psf and up a huge 7.2% over twelve months. The big-box meltdown has not affected Austin. “Round Rock is considering offering incentives for the master-planned project,

which would include at least 1 million square feet of commercial and residential development,” according to the Business Journal. “That’s roughly equivalent to what Barton Creek Square mall has to offer, in terms of square footage.” Mark VI capital owns 65.5 acres of land on the southeast corner of the intersection between SH 45 and I-35 after buying in 2016, and has planned the project.

Retail: “If you took a walk down New York City’s Bleecker Street in the 1990s, you’d find many eclectic shops, local restaurants, and gathering places like what you see currently on Austin’s famed South Congress Avenue,” a guest columnist wrote in the Business Journal. “If you take a walk down Bleecker Street now, you’ll see deserted sidewalks, boarded up storefronts, and very few of the local businesses that once thrived there. It should serve as a cautionary tale for South Congress landlords.” The cachet of Bleecker Street attracted major national and international brands, and “landlords jumped at the prospect of much higher rents and leases backed by major corporations.” However, “once the street had metamorphosed from a neighborhood with a vibrant local culture into a high-end shopping mall, the cachet with being located on Bleecker faded. The stores were meant to serve more as billboards than lucrative points of sale in the first place, so when Bleecker stopped being cool and the retail sector was disrupted by online shopping, the major brands fled. Today, storefronts are empty or boarded up, and landlords who once commanded some of the highest rents on the globe are struggling to find tenants.” To prevent this from happening in Austin, the source recommends landlords combine into a single leasing agent for the strip and tenants combine into a single online marketplace for all of them.






6

Published December 11, 2017 TRANSACTION ANALYTICS

Office Reis reports just two qualifying single property office investment sales for the third quarter of 2017, with a transaction volume of $10.2 million, a mean price of $283 psf, and a mean cap rate of 5.3%.* A strong fourth quarter will be required for the 2017 sales total, now at $509.1 million, to match the $866 million of 2016. The rolling 12-month cap rate is high at 7.8%, down 90 basis points from the prior quarter and down 80 basis points year-over-year. No third quarter deals are among the ten largest year-over-year. Apartment Apartment deals remained active during the third quarter, with 16 deals for $250.8 million at a mean price of $111,000 per unit. The rolling 12-month cap rate is 5.3%, unchanged from the prior quarter and up 60 from a year earlier. There was $1.75 billion in apartment property told in 2016, compared with $1.16 billion through three quarters of 2017. In the largest third quarter deal, Monogram Residential Trust sold the 217-unit Seven in Austin to Greystar for $56.625 million ($260,945 per unit) in September. Retail Third quarter retail deals were led by the 230,000-square-foot Kyle Marketplace in Kyle. DDR Corporation sold it to InvenTrust Properties Corporation in September for $59 million ($257 psf). There were 17 third quarter deals in total for $158.2 million at a mean price of $249 psf and a mean cap rate of 4.7%. The rolling 12-month cap rate ended the quarter at 6.2%, down from 6.6% the quarter before and down from 8.1% a year earlier.

* Reis Transaction Analytics includes single sale transactions of $2,000,000 and greater, and excludes portfolio sales where pricing of individual buildings cannot be confirmed.





7

Published December 11, 2017 INDUSTRIAL

The 15.9-million-square-foot Austin Flex/R&D market got some new supply in the third quarter of 2017, as the 116,200-square-foot Tech Ridge 3.1 completed construction in northeast Austin in July. By October, however, net absorption totaled 105,000 square feet year-to-date, leaving the vacancy rate unchanged for 2017 at 9.4%. The average asking rent was up 2.5% year-to-date to $9.71 psf in October, with the average effective rent up 2.8% to $8.70 psf. Two Flex/R&D buildings with a total of 230,250 square feet are under construction at Brushy Creek in Cedar Park. In Austin, the three-phase Data Foundry, with 325,000 square feet, and the 325,000-square-foot Texas 2 completed recently. The Flex/R&D vacancy rate is forecast to fall to 8.9% at year-end 2017 and 6.6% at year-end 2021. Rent gains are anticipated at 3.5% to 4.0% per year through 2021, roundly speaking. The 35.6-million-square-foot Austin Metropolitan Statistical Area (MSA) warehouse/distribution market is more active with 754,000 square feet completing construction thus far in 2017 including three buildings with 322,900 square feet added at Freeport Tech Center South in southeast Austin in July. Net absorption totaled just 214,000 square feet year-to-date through October, and the vacancy rate increased 140 basis points to 9.0%. The average asking rent is up a strong 3.3% year-to-date to a relatively high $7.22 psf, with the average effective rent up 3.6% to $6.43 psf. More development is coming, with 145 million square feet under construction including 550,000 square feet at the Living Spaces Fulfillment Center in Pflugerville. Reis predicts the vacancy rate will fall back to 8.5% at year-end 2017 and 6.7% at year-end 2021, as rents rise at around 4.0% per year. Cushman & Wakefield notes a vacancy rate of 9.5%, up 200 basis points from a

year earlier, and an asking rent of $9.34 psf, down from $9.75 psf, for industrial space in Austin. This source reports minus 385,000 square feet of net absorption during the third quarter, a “sign” of a “softening” market.


For additional metro and submarket level information on the top 82 markets for the four principal property types, visit www.reis.com or call Reis at: (800) 366-REIS.

Unless otherwise indicated, economic and demographic data provided by Moody’s Economy.com

Publication Date: December 2017 © 2017 Reis, Inc.

Industrial: “An industrial complex with more than 600,000 square feet of leasable space is set to rise on a 30-acre parcel of grassland just east of I-35 in Buda, south of Austin,” the Business Journal reports. “Exeter Property Group hopes to break ground on the first phase—a 300,000-square-foot building—in early 2018. Hays County has agreed to an incentives deal that would rebate 15.0% of the property taxes for the site at buildout, increasing to 30.0% once the developer finds a tenant with at least 50 employees.” Buda is also putting up $130,000 in cash to subsidize the development. “The site should appeal to companies with big distribution needs—for sending products into Austin as well as the wider region with easy access to I-35.”

Sector 3Q17 3Q16 Chg

Office 12.9% 12.8% 10 bps

Apartment 6.0% 5.2% 80 bps

Retail 5.3% 5.6% -30 bps

Warehouse 9.0% 7.9% 110 bps

Flex/R&D 9.4% 10.0% -60 bps

Vacancy

Sector Chg

Office $30.88 psf $30.15 psf 2.4%

Apartment $1,166 month $1,126 month 3.6%

Retail $23.28 psf $22.64 psf 2.8%

Warehouse $7.04 psf $6.85 psf 2.8%

Flex/R&D $9.63 psf $9.37 psf 2.8%

Rents3Q17 3Q16





Metro Trend Futures

Metro Trend FuturesIndustrial - 4th Quarter 2017Prepared By Reis, Inc.



Section 2 - Metro Data

Year Qtr InventorySF/Units Completions Inventory

Growth% Vacant Stock VacancyRate

VacancyChange(BPS)

OccupiedStock

NetAbsorption Asking Rent Ask Rent %

Chg

2012 Y 32,605,000 245,000 0.8% 4,336,000 13.3% -100 28,269,000 536,000 $ 5.50 0.4%

2013 Y 33,112,000 507,000 1.6% 3,709,000 11.2% -210 29,403,000 1,134,000 $ 5.56 1.1%

2014 Y 33,712,000 600,000 1.8% 3,506,000 10.4% -80 30,206,000 803,000 $ 5.62 1.1%

2015 Y 34,286,000 574,000 1.7% 2,914,000 8.5% -190 31,372,000 1,166,000 $ 5.72 1.8%

2016 Y 34,726,000 440,000 1.3% 2,500,000 7.2% -130 32,226,000 854,000 $ 5.98 4.5%

2017 Y 35,626,000 900,000 2.6% 2,850,000 8.0% 80 32,776,000 550,000 $ 6.23 4.2%

2018 Y 36,826,000 1,200,000 3.4% 2,578,000 7.0% -100 34,248,000 1,472,000 $ 6.45 3.5%

2019 Y 37,982,000 1,156,000 3.1% 2,393,000 6.3% -70 35,589,000 1,341,000 $ 6.70 3.9%

2020 Y 39,022,000 1,040,000 2.7% 2,185,000 5.6% -70 36,837,000 1,248,000 $ 6.96 3.9%

2021 Y 40,080,000 1,058,000 2.7% 1,964,000 4.9% -70 38,116,000 1,279,000 $ 7.22 3.7%

2022 Y 41,011,000 931,000 2.3% 1,804,000 4.4% -50 39,207,000 1,091,000 $ 7.52 4.2%

Year Qtr EffectiveRent

Eff Rent %Chg Cons/Abs Abs/Occ

Stock% Population Pop%Chg Employment Emp%

Chg Households HH%Chg

Avg HHIncome

AHHI%Chg

2012 Y $ 4.97 0.6% 0.5 1.9% 1,858,110 2.8% 860,600 4.9% 709,220 3.3% $123,835 8.6%

2013 Y $ 5.04 1.4% 0.4 3.9% 1,911,370 2.9% 898,900 4.5% 733,370 3.4% $121,348 - 2.0%

2014 Y $ 5.11 1.4% 0.7 2.7% 1,970,160 3.1% 936,370 4.2% 755,710 3.0% $129,860 7.0%

2015 Y $ 5.21 2.0% 0.5 3.7% 2,026,450 2.9% 978,330 4.5% 776,620 2.8% $132,711 2.2%

2016 Y $ 5.47 5.0% 0.5 2.7% 2,085,470 2.9% 1,014,170 3.7% 797,990 2.8% $131,560 - 0.9%

2017 Y $ 5.72 4.6% 1.6 1.7% 2,144,760 2.8% 1,030,870 1.6% 822,510 3.1% $135,280 2.8%

2018 Y $ 5.95 4.0% 0.8 4.3% 2,204,620 2.8% 1,052,560 2.1% 847,180 3.0% $140,644 4.0%

2019 Y $ 6.18 3.9% 0.9 3.8% 2,263,100 2.7% 1,072,510 1.9% 870,500 2.8% $145,770 3.6%

2020 Y $ 6.44 4.2% 0.8 3.4% 2,321,470 2.6% 1,087,170 1.4% 893,640 2.7% $149,625 2.6%

2021 Y $ 6.70 4.0% 0.8 3.4% 2,382,870 2.6% 1,111,860 2.3% 917,950 2.7% $154,598 3.3%

2022 Y $ 6.98 4.2% 0.9 2.8% 2,446,130 2.7% 1,137,270 2.3% 942,650 2.7% $159,799 3.4%


New Construction Listing

New Construction ListingIndustrial - 4th Quarter 2017Prepared By Reis, Inc.

Powered By Reis Metro: AustinAs of 08-Jan-2018CustomerID:1016323


Section 3 - Construction Deliveries

Completed SF SF Under Construction Totals Planned Proposed Totals

2017 YTD 2018 2018 2019 and Later 2017 and LaterWarehouse/Distribution 1,225,197 350,171 244,450 858,013 2,677,831 1,876,042 2,829,500 4,705,542

Flex/R&D 143,211 0 0 230,250 373,461 993,600 830,200 1,823,800Manufacturing 100,000 0 0 0 100,000 508,600 0 508,600

N/A 650,000 0 0 0 650,000 3,229,000 302,604 3,531,604Totals 2,118,408 350,171 244,450 1,088,263 3,801,292 6,607,242 3,962,304 10,569,546

Section 4 - Metro Construction Breakdown

15.3 %

4.2 %

29.1 %

51.4 %

Metro Construction by Project Type 2017 and Later

Flex/R&DManufacturingN/AWarehouse/Distribution

25.5 %

23.1 %

21.8 %21.5 %

3.8 %

4.3 %

Metro Construction by Top Five Submarket Share 2017 and Later

Non-Submarketed AreasSoutheastRound Rock/Far NENortheastEastOther Submarkets in Metro

Includes all recently completed, under construction, planned, and proposed properties from the table above. Note that some verified listings for planned and proposed properties do not yet have afirm completion date.

Section 5 - Submarket New Construction Project Tally

1. Completed 2. Under Construction 3. Planned/Proposed

Submarket Flex/R&D Ware./Dist. Other Flex/R&D Ware./Dist. Other Flex/R&D Ware./Dist. Other GrandTotal

South Central 0 0 0 0 132,000 0 0 0 0 132,000

East 0 504,395 0 0 0 0 0 0 39,000 543,395

Northeast 116,211 0 0 0 726,013 0 1,260,000 612,694 375,604 3,090,522

Round Rock/Far NE 0 0 100,000 0 0 0 0 536,446 2,500,000 3,136,446

Northwest 0 0 0 230,250 0 0 70,000 168,000 0 468,250

Southeast 0 1,001,373 650,000 0 244,450 0 397,000 340,742 690,000 3,323,565

Southwest 0 17,600 0 0 0 0 0 0 0 17,600

Non-Submarketed Areas 27,000 52,000 0 0 0 0 96,800 3,047,660 435,600 3,659,060




Section 6 - Metro Inventory Details

Inventory By Age

Year Built Percent

Before 1970 2.0%

1970-1979 9.0%

1980-1989 27.0%

1990-1999 26.0%

2000-2009 28.0%

After 2009 8.0%

As of 12/31/172012 2014 2016 2018 2020 2022

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Austin Southwest US

Industrial Inventory Growth Trend and Forecast%

Section 7 - Inventory Growth Rankings Forecast

Southwest Region Cumulative Inventory Growth Forecast Ranking 2018 and Later National Cumulative Inventory Growth Forecast Ranking 2018 and Later

Metro Cumulative Growth Forecast Rank Metro Cumulative Growth Forecast RankAustin 10.2% 1

Austin 10.2% 1

Fort Worth 9.5% 2

Dallas 8.8% 3

Houston 5.3% 4

San Antonio 3.0% 5

San Antonio 3.0% 5

San Bernardino/Riverside 13.8% 1

Jacksonville 12.0% 2

Orlando 10.4% 3

Austin 10.2% 4

Atlanta 9.5% 5

Fort Worth 9.5% 6

San Jose 0.8% 47

Section 8 - Construction/Absorption Change

Construction and Absorption

Quarterly

4Q17 3Q17 YTD Avg

Sq Ft Built Sq FtAbsorbed

Con/AbsRatio Sq Ft Built Sq Ft

AbsorbedCon/Abs

Ratio Sq Ft Built Sq FtAbsorbed

Con/AbsRatio

Austin 0 152,000 0.0 439,000 46,000 9.5 217,500 113,300 1.9

Southwest 2,256,000 4,973,000 0.5 5,190,000 8,612,000 0.6 3,825,800 5,513,300 0.7Average over period ending: 12/31/17 12/31/17 12/31/17 09/30/17 09/30/17 09/30/17 12/31/17 12/31/17 12/31/17




Section 9 - Metro Area Map: Austin

Completed Projects Under Construction Planned/Proposed




Section 10 - New Construction Listing

No. Property Name and Address Date AsOf Secondary Type County Size (Sq Ft) No. Bldgs Floors Est.

GroundbreakEst.

Completion Status

Submarket: East

1

vXchnge Expansion8025 N INTERSTATE 35 AUSTIN, TX 78753

Owner Phone: (844) 872 - 4643Owner Company: vXchnge

10-31-2017 N/A Travis 39,000 9/2018 Planned

2

CAPITAL WRIGHT DISTRIBUTION CENTERAND HQ10095 E US HWY 290 MANOR, TX 78655

General Contractor Name: DEBRAGeneral Contractor Phone: (512) 302 - 1177General Contractor Company: WHITECONSTRUCTION

05-25-2017 Warehouse/Distribution Travis 420,000 1 1 2/2016 4/2017 Complete

3

TECHRIDGE 2.1401 CENTER RIDGE DR AUSTIN, TX 78753

Developer Name: Ryan WhalenDeveloper Phone: (512) 852 - 7506Developer Company: LIVE OAK GOTTESMAN


Submarket: Northeast

4

Spring Brook Corporate Center Bldg 81121 NEW MEISTER LN PFLUGERVILLE, TX78660

Developer Phone: (713) 338 - 3000Developer Company: IDI Logistics

10-31-2017 Warehouse/Distribution Travis 160,000 1 Planned

5

Living Spaces Fulfillment Center19024 Heatherwilde Blvd Pflugerville, TX 78660

Owner Phone: (877) 266 - 7300Owner Company: LIVING SPACES FURNITURE

10-30-2017 Warehouse/Distribution Travis 550,000 1 1 7/2017 1/2019UnderConstr.

6

FS Builder Resources Ph 116225 Impact Way Pflugerville, TX 78660

Owner Phone: (972) 484 - 3999Owner Company: FS Builder Resources

08-31-2017 Warehouse/Distribution Travis 187,000 1 Planned

7

FS Builder Resources Ph 216225 Impact Way Pflugerville, TX 78660

Owner Phone: (972) 484 - 3999Owner Company: FS Builder Resources

08-31-2017 Manufacturing Travis 73,000 1 Planned





GroundbreakEst.

Completion Status

8

PECAN 13O BUSINESS PARK BLDG C103 PECAN ST PFLUGERVILLE, TX 78660

Developer Name: CHARLES HARVEYDeveloper Phone: (512) 255 - 3000

08-30-2017 Flex/R&D Travis 120,000 1 1 Planned

9

PECAN 13O BUSINESS PARK BLDG DHELIOS DR @ E PECAN ST PFLUGERVILLE,TX 78660

Developer Name: CHRISTIAN KIRKDeveloper Phone: (877) 970 - 7232Developer Company: 130 COMMERCE


10

PECAN 13O BUSINESS PARK BLDG EHELIOS DR @ E PECAN ST PFLUGERVILLE,TX 78660

Developer Name: CHARLES HARVEYDeveloper Phone: (512) 255 - 3000


11

Heritage Crossing Ph 2 Bldg 5North Interstate 35 Frontage Road & ScarbroughDr Austin, TX 78728

Developer Phone: (214) 647 - 4947Developer Company: LIT Texas Industrial

08-15-2017 Warehouse/Distribution Travis 107,780 1 1 Planned

12

Heritage Crossing Ph 2 Bldg 6North Interstate 35 Frontage Road Austin, TX78728



13




14




15

Tech Ridge 3.1605 W Howard Ln Austin, TX 78753

Developer Name: Eduardo GonzalezDeveloper Phone: (210) 352 - 6806Developer Company: Prologis

07-28-2017 Flex/R&D Travis 116,211 1 1 7/2017 Complete





GroundbreakEst.

Completion Status

16 Flooring Services Southwest Inc Phase I15825 Impact Way Pflugerville, TX 78660

06-06-2017 Warehouse/Distribution Travis 176,013 1 6/2017UnderConstr.

17

Harris Ridge Business Center Bldg 11100 E Howard Ln Austin, TX 78753

Leasing Agent Name: Andy ThomasLeasing Agent Phone: (512) 538-0058Leasing Agent Company: HPI

05-31-2016 Warehouse/Distribution Travis 51,200 1 1 5/2016 Complete

18

Harris Ridge Business Center Bldg 21100 E Howard Ln Austin, TX 78753

Leasing Agent Name: Andy ThomasLeasing Agent Phone: (512) 538-0058Leasing Agent Company: HPI


19

PARMER SECTOR 7, BLDG 7.3HOWARD LN @ HARRIS RIDGE BLVD AUSTIN,TX 78754

Leasing Agent Name: JOHN BARKSDALELeasing Agent Phone: (512) 499 - 4976

04-19-2017 Flex/R&D Travis 150,000 1 3 Proposed

20




21

PARMER SECTOR 6, BLDG 113301 MCCALLEN PASS AUSTIN, TX 78753

Developer Name: LESLIEDeveloper Phone: (512) 306 - 9880Developer Company: AUSTIN COMMERCIAL

04-19-2017 N/A Travis 302,604 1 Proposed

22


Leasing Agent Name: MARK EMERICKLeasing Agent Phone: (512) 499 - 4934


23

PARMER SECTOR 7, BLDG 6HOWARD LN @ HARRIS RIDGE BLVD AUSTIN,TX 78754

Leasing Agent Name: MARK EMERICKLeasing Agent Phone: (512) 499 - 4934






GroundbreakEst.

Completion Status

24




25

PARMER SECTOR 7, BLDG 4HOWARD LN @ HARRIS RIDGE BLVD AUSTIN,TX 78754

Leasing Agent Name: LESLIELeasing Agent Phone: (512) 306 - 9880Leasing Agent Company: AUSTINCOMMERCIAL


26

PECAN 13O BUSINESS PARK BLDG FHELIOS DR @ E PECAN ST PFLUGERVILLE,TX 78660

Developer Name: CHRISTIAN KIRKDeveloper Phone: (877) 970 - 7232Developer Company: 130 COMMERCE

03-31-2017 Flex/R&D Travis 120,000 1 Planned

Submarket: Northwest

27

Brushy Creek Bldg 11200 BMC DR CEDAR PARK, TX 78613

Developer Name: RONDeveloper Phone: (512) 459 - 4734Developer Company: HP ENGINEERING

11-03-2017 Flex/R&D Williamson 106,250 1 1 5/2017UnderConstr.

28

BRUSHY CREEK BLDG 21202 BMC DR CEDAR PARK, TX 78613

Developer Name: CHRIS WHITWORTHDeveloper Phone: (512) 684 - 3743Developer Company: CAPITAL CITYPARTNERS

11-03-2017 Flex/R&D Williamson 124,000 1 1 5/2017UnderConstr.

29

Scottsdale Crossing Future PhasesHWY 183A @ SCOTTSDALE DR CEDAR PARK,TX 78641

Leasing Agent Name: TOM PARDEELeasing Agent Phone: (512) 901 - 0171

07-12-2017 Warehouse/Distribution Williamson 84,000 1 1 Proposed

30

Scottsdale Crossing Future PhasesHWY 183A @ SCOTTSDALE DR CEDAR PARK,TX 78641

Leasing Agent Name: TOM PARDEELeasing Agent Phone: (512) 901 - 0171

07-12-2017 Warehouse/Distribution Williamson 84,000 1 1 Proposed

31

Scottsdale Crossing Technology CenterPhase 3 Building JHWY 183A @ SCOTTSDALE DR CEDAR PARK,TX 78641

Leasing Agent Name: TOM PARDEELeasing Agent Phone: (512) 587 - 8919Leasing Agent Company: TIG REAL ESTATE

07-12-2017 Flex/R&D Williamson 30,000 1 1 Planned





GroundbreakEst.

Completion Status

32

Scottsdale Crossing Technology CenterPhase 3 Building HHWY 183A @ SCOTTSDALE DR CEDAR PARK,TX 78641



33

Scottsdale Crossing Technology CenterPhase 3 Building GHWY 183A @ SCOTTSDALE DR CEDAR PARK,TX 78641



Submarket: Round Rock/Far NE

34

Innovation Business Park Ph 1550 Alliance Blvd Hutto, TX 78634

Developer Phone: (512) 494 - 4722Developer Company: Titan Development

11-21-2017 N/A Williamson 650,000 5 Planned

35

Innovation Business Park Ph 1 Bldg 1550 Alliance Blvd Hutto, TX 78634

Developer Phone: (512) 494 - 4722Developer Company: Titan Development

11-21-2017 N/A Williamson 150,000 1 Planned

36

Eastgroup Speculative Development Ph 2Bldg 1900 E Old Settlers Blvd Round Rock, TX 78664

Developer Phone: (972) 386 - 8700Developer Company: EastGroup Properties

09-27-2017 Warehouse/Distribution Williamson 109,800 1 1 Planned

37



09-27-2017 Warehouse/Distribution Williamson 82,827 1 1 12/2018 Planned

38



09-27-2017 Warehouse/Distribution Williamson 76,819 1 1 12/2018 Planned

39

UPS Distribution Center33 ROUNDVILLE LN ROUND ROCK, TX 78664

Owner Name: Bill WalkerOwner Phone: (972) 559 - 7802Owner Company: United Parcel Service

08-31-2017 Warehouse/Distribution Williamson 267,000 1 Planned





GroundbreakEst.

Completion Status

40

MUSTANG CREEK INDUSTRIAL PARK BLDG2197 South Edmond Street Taylor, TX 76574

Owner Name: ReginaOwner Phone: (512) 352 - 4321Owner Company: TAYLOR ECONOMICDEVELOPMENT

06-02-2017 Manufacturing Williamson 50,000 1 1 9/2016 5/2017 Complete

41

MUSTANG CREEK INDUSTRIAL PARK BLDG3197 South Edmond Street Taylor, TX 76574

Owner Name: ReginaOwner Phone: (512) 352 - 4321Owner Company: TAYLOR ECONOMICDEVELOPMENT

06-02-2017 Manufacturing Williamson 50,000 1 1 9/2016 5/2017 Complete

42 Innovation Business Park Ph 2Innovation Blvd & Limmer Loop Hutto, TX 78634

04-19-2017 N/A Williamson 1,700,000 Planned

Submarket: South Central

43

UPCycle Warehouse Expansion2498 E 6TH ST AUSTIN, TX 78702

General Contractor Name: Dylan JensenGeneral Contractor Phone: (512) 275 - 0881General Contractor Company: The Burt Group

04-12-2017 Warehouse/Distribution Travis 132,000 1UnderConstr.

Submarket: Southeast

44

TEXAS 24100 SMITH SCHOOL RD AUSTIN, TX 78744

Owner Phone: (512) 684 - 9000Owner Company: DATA FOUNDRY

11-14-2017 N/A Travis 325,000 1 2 11/2016 11/2017 Complete

45

XBIOTECH CAMPUS PH I5217 WINNEBAGO LN AUSTIN, TX 78744

Owner Name: Ashley OteroOwner Phone: (512) 386 - 2900Owner Company: XBIOTECH USA

11-09-2016 Manufacturing Travis 40,000 1 2 9/2014 9/2016 Complete

46

7019 Burleson Road7019 BURLESON RD AUSTIN, TX 78744

General Contractor Name: Brian HuddelstonGeneral Contractor Phone: (855) 752 - 6739General Contractor Company: CoreyConstruction

11-06-2017 Warehouse/Distribution Travis 68,000 Planned

47

DATA FOUNDRY TEXAS 2 PHASE 14100 SMITH SCHOOL RD AUSTIN, TX 78744

Owner Name: REF NAMEOwner Phone: (512) 684 - 9000Owner Company: DATA FOUNDRY

09-07-2017 N/A Travis 120,000 1 9/2017 Complete





GroundbreakEst.

Completion Status

48


Developer Phone: (512) 684 - 9000Developer Company: Data Foundry


49


Developer Phone: (512) 684 - 9000Developer Company: DATA FOUNDRY


50

Park 183 Ph 1 Bldg 28219 Burleson Rd Austin, TX 78744

General Contractor Name: Reese ConnerGeneral Contractor Phone: (713) 777 - 5337General Contractor Company: Jones & Carter Inc

08-31-2017 Warehouse/Distribution Travis 115,025 1 8/2017 5/2018UnderConstr.

51

Park 183 Ph 1 Bldg 18219 Burleson Rd Austin, TX 78744

General Contractor Name: Reese ConnerGeneral Contractor Phone: (713) 777 - 5337General Contractor Company: Jones & Carter Inc

08-31-2017 Warehouse/Distribution Travis 129,425 1 8/2017 5/2018UnderConstr.

52

Fifth Generation12102 Moore Rd Austin, TX 78719

Owner Phone: (512) 242 - 2755Owner Company: Fifth Generation


53

Freeport Tech Center South Ph 1 Building 16244 E STASSNEY LN AUSTIN, TX 78744

Leasing Agent Phone: (512) 717 - 4980Leasing Agent Company: Kalil Commercial


54

Freeport Tech Center South Ph 2 Bldg 4 and 56244 E STASSNEY LN AUSTIN, TX 78744

General Contractor Name: Darrell SeedsGeneral Contractor Phone: (512) 388 - 9900General Contractor Company: HaegelinConstruction Co.


55

Freeport Tech Center South Ph 1 Building 36244 E STASSNEY LN AUSTIN, TX 78744







GroundbreakEst.

Completion Status

56

FREEPORT TECHNOLOGY CENTER SOUTH 26320 E Stassney Ln Austin, TX 78744



57

Commerce Center South Buildings 7 - 105811 TRADE CENTER DR AUSTIN, TX 78744

Leasing Agent Name: Luke WheelerLeasing Agent Phone: (512) 314-3553Leasing Agent Company: Transwestern


58

EXPO 136231 E Stassney Ln Austin, TX 78744

Leasing Agent Name: Mark EmerickLeasing Agent Phone: (512) 499 - 4934Leasing Agent Company: CBRE


59

EXPO BUSINESS PARK BLDG 126231 E STASSNEY LN AUSTIN, TX 78744

Leasing Agent Name: BRADLeasing Agent Phone: (512) 482 - 5552Leasing Agent Company: TRAMMELL CROW

06-02-2016 Manufacturing Travis 57,600 1 1 9/2015 6/2016 Complete

60

MET CENTER II BLDG 157701 METROPOLIS DR AUSTIN, TX 78744

Developer Name: Jordan SmithDeveloper Phone: (512) 479 - 7850Developer Company: Zydeco Development


61


Developer Name: JORDANDeveloper Phone: (512) 479 - 7850Developer Company: Zydeco Development


62




63


Developer Name: REBECCADeveloper Phone: (512) 565 - 9090Developer Company: Zydeco Development






GroundbreakEst.

Completion Status

64




65


Developer Name: JORDAN SMITHDeveloper Phone: (512) 479 - 7850Developer Company: Zydeco Development


66 Park 183 Phase 2BURLESON RD @ US-183 AUSTIN, TX 78744

04-11-2017 N/A Travis 690,000 Planned

67

SouthPark Commerce Center V Building 34500 South Pleasant Valley Road Austin, TX78744

Leasing Agent Name: Luke WheelerLeasing Agent Phone: (512) 314-3553Leasing Agent Company: Transwestern


68

Southpark Commerce Center V Building 24500 South Pleasant Valley Road Austin, TX78744

Leasing Agent Name: Greg JohnsonLeasing Agent Phone: (512) 314-3570Leasing Agent Company: Transwestern


69

Southpark Commerce Center V Building 14500 South Pleasant Valley Road Austin, TX78744

Leasing Agent Name: Greg JohnsonLeasing Agent Phone: (512) 314-3570Leasing Agent Company: Transwestern


Submarket: Southwest

70

Manchaca Industrial Center12300 Wirth Dr Manchaca, TX 78652

Leasing Agent Name: Ken VargasLeasing Agent Phone: (512) 971 - 9343Leasing Agent Company: All State Real EstateLTD


Submarket: Not in a Reis submarket

71

Exeter Ph 12150 FIRECRACKER DR BUDA, TX 78610

Developer Name: John WarrenDeveloper Phone: (903) 456 - 0245Developer Company: Exeter Property Group

12-06-2017 Warehouse/Distribution Hays 305,760 1 1 Planned





GroundbreakEst.

Completion Status

72

Exeter Ph 2FIRECRACKER @ MAIN ST BUDA, TX 78610

Developer Name: John WarrenDeveloper Phone: (903) 456 - 0245Developer Company: Exeter Property Group

12-06-2017 Warehouse/Distribution Hays 300,000 1 1 Proposed

73

Centerpark San Marcos Industrial 1Highway 35 N & Centerpoint Rd San Marcos, TX78666

Developer Phone: (512) 493 - 5900Developer Company: RYAN COS


74

Centerpark San Marcos Industrial 8S Interstate 35 & Center Point Rd San Marcos,TX 78666



75


Developer Phone: (281) 954 - 2514Developer Company: WARE MALCOMB


76




77

Centerpark San Marcos Industrial 5S Interstate 35 & Centerpoint Rd San Marcos, TX78666



78




79



09-28-2017 Warehouse/Distribution Hays 223,020 Proposed





GroundbreakEst.

Completion Status

80

Centerpark San Marcos Industrial 32002 CENTER POINT RD SAN MARCOS, TX78666



81 Urban Mining Development LLCClovis R Barker Road San Marcos, TX 78666

09-15-2017 Manufacturing Hays 435,600 1 Planned

82Amazon San Marcos Fulfillment CenterMCCARTY LN @ I-35 SAN MARCOS, TX 78666

Developer Company: USAA

09-07-2016 Warehouse/Distribution Hays 855,000 9/2015 7/2016 Complete

83 IH-35 Corridor Business Park Bldg A and B17900 IH 35 BUDA, TX 78610

08-29-2017 Warehouse/Distribution Hays 80,400 2 1 Planned

84

Heritage Crossing Bldg 42121 Scarbrough Dr Austin, TX 78728

Leasing Agent Name: Sam OwenLeasing Agent Phone: (512) 481-3030Leasing Agent Company: Stream Realty


85

721 Rohde Road721 Rohde Rd Kyle, TX 78640

Developer Name: David CuddyDeveloper Phone: (512) 590 - 4513Developer Company: Studio Estates

08-10-2017 Warehouse/Distribution Hays 40,000 4 1 8/2017 Complete

86

Scottsdale Crossing Technology CenterPhase 3 Building FScottsdale Dr & TX-183A Cedar Park, TX 78613


07-12-2017 Flex/R&D Williamson 25,000 1 Planned

87 The Odyssey Business Park-Phase 11955 FM 2001 BUDA, TX 78610

03-15-2017 Flex/R&D Hays 21,600 3 1 Planned





GroundbreakEst.

Completion Status

88

MANOR INDUSTRIAL - PH I12805 BELTEX DR MANOR, TX 78653

Leasing Agent Name: ROB EAVESLeasing Agent Phone: (512) 474 - 5557

03-15-2017 Flex/R&D Travis 27,000 2 1 4/2015 3/2017 Complete

89 The Odyssey Business Park-Phase 21955 FM 2001 BUDA, TX 78610

03-15-2017 Flex/R&D Hays 18,000 3 1 Proposed

90

MANOR INDUSTRIAL - PH II12809 BELTEX RD MANOR, TX 78653

Leasing Agent Name: Ryan WilsonLeasing Agent Phone: (512) 505 - 0006Leasing Agent Company: ECR


91

ETS-Lindgren Expansion1301 ARROW POINT DR CEDAR PARK, TX78613

Owner Phone: (512) 531 - 6400Owner Company: ETS LINDGREN

01-03-2018 Warehouse/Distribution Williamson 12,000 1 1 12/2017 Complete


Sales Trend

Sales TrendIndustrial - 4Q 2017Prepared By Reis, Inc.



4Q 2017 Metro Statistics Metro Statistics - 12 Month RollingMean Median 25th Percentile Mean Median 75th Percentile

Cap Rate n/a n/a n/a n/a n/a n/aSale Price $3,790,000 $3,625,000 $3,064,080 $4,565,985 $4,000,000 $6,078,368Number of Floors 1 1 1 1 1 1Year Built 1975 1974 1962 1989 1989 1997




Most Recent Transactions

City, State Property Type Year Built Floors

Price PerSq Ft

Range Sale Date

Reis SalesComparables

Number

1. Round Rock, TX Manufacturing 1993 1 $200 - $249 Q4 2017 3745694

2. Austin, TX Warehouse 1955 1 $100 - $124 Q4 2017 3751700

3. Del Valle, TX 1968 1 n/a Q4 2017 3745692

4. Round Rock, TX Manufacturing 1975 1 n/a Q4 2017 3740605

5. Austin, TX Warehouse 1978 1 n/a Q4 2017 3720635


7. Austin, TX Flex Office/R and D 1985 1 $75 - $99 Q4 2017 3702382

8. Austin, TX Flex Office/R and D 1968 1 n/a Q4 2017 3695977

9. San Marcos, TX Warehouse n/a 1 $25 - $49 Q4 2017 3701616

10. Georgetown, TX Warehouse 1983 1 n/a Q4 2017 3702603


12. Pflgerville, TX Warehouse 2004 1 $600 - $699 Q3 2017 3686397

13. Austin, TX Tel./Comp. Equip. Facility 1980 1 $200 - $249 Q3 2017 3672794

14. Luling, TX Warehouse 1920 1 n/a Q3 2017 3749607

15. Round Rock, TX Flex Office/R and D 1986 1 $100 - $124 Q3 2017 3663766

16. Buda, TX Flex Office/R and D 1990 2 n/a Q3 2017 3671204

17. Austin, TX Warehouse 1951 1 $250 - $299 Q3 2017 3663292

18. New Braunfels, TX Warehouse 2011 1 $150 - $199 Q3 2017 3661742

19. Austin, TX Flex Office/R and D 1998 1 $50 - $74 Q3 2017 3667692

20. Austin, TX Flex Office/R and D 1939 1 n/a Q3 2017 3656147

For details on the transactions listed above, click on the Sales Comparables number link. For historical transactions ortransactions in another Reis market, please go to the Sales Comparables section of the Reis website. www.Reis.com

https://se.reis.com/comps/index.cfm?event=comps.getSCByRecordID&scid=3745694























Property Location and Physical Characteristics

Property Name Property Type Manufacturing

Address 1513 Sam Bass Rd Building Area (SF) 22,200NRA / 22,200GBA

City Round Rock No. of Bldgs./Floors 1 / 1

State/ZIP/County TX / 78681 / Williamson Year Built/Renovated 1993 / --

Metro (Submarket) Austin (Outside Delineated Areas) Ceiling Height (Ft) --

Comments

Sale Details and Analysis

Sale Date 21 Dec 2017 Reis Cap Rate Analysis ProformaSale Price $5,445,000 EST All per square foot figures are on an annual basis

Sale Price PSF $245NRA / $245GBA Total Rentable Area Assumption --

Vacancy at Sale 0.0% (excludes sublease) Potential Rent Revenue --Vacancy Loss/Rate --

Seller 1. Cen-Tex Machining Inc / (512) 255-1477 / 1513 Sam Bass Rd,Round Rock, TX 78681

Effective Rent Revenue --

Expense Reimbursements --

Free Rent Concessions --Credit Loss --

Buyer 1. Spicewood 5k LLC / 3977 Fall Creek Rd, Spicewood, TX 78669

Effective Gross Revenue --Operating Expenses --

Capital Reserve --Net Operating Income --

Comments Sales price is undisclosed. Est Going-in Cap Rate/EGIM -- / --

12-Month Rolling Metro Cap Rate 11.7% [Q4 2017]Reported Cap Rate, This Sale None

Additional Details When Available

Seller's Broker Lot Size 106,156 SF / 2.437 Acres

Buyer's Broker Key Tenants

Other Broker Centex Machining Inc (22,200 SF)

Interest Purchased

Parcel Numbers R414250, R318087

Deed Reference 2017117028

Time on Market

Space Allocation Manufacturing 22,200 SF

Total 22,200 SF

Financing Details Southstar Bank SSB provided a $4,356,000 loan.

Other:





Property Name Walnut Creek Office Park Property Type Flex Office/R and D

Address 8101 Cameron Rd Building Area (SF) 35,000NRA / 35,000GBA

City Austin No. of Bldgs./Floors 3 / 1

State/ZIP/County TX / 78754 / Travis Year Built/Renovated 1985 / 2011

Metro (Submarket) Austin (East) Ceiling Height (Ft) --

Comments


Sale Date 30 Oct 2017 Reis Cap Rate Analysis ProformaSale Price $3,375,000 EST All per square foot figures are on an annual basis


Vacancy at Sale Potential Rent Revenue --Vacancy Loss/Rate --

Seller 1. Saber Realty Advisors / (310) 207-2040 / 11777 San VicenteBlvd, Los Angeles, CA 900492. Cameron Office Park LP




Buyer 1. Mahilpr Investments LLC / 24365 Dry Canyon Cold Creek Rd,Calabasas, CA 91302








Other BrokerBest Choice Roofing and Home Improvement, Floor Plan Xpress,Austech Computers, State Farm, Homeland Staffing Inc

Interest Purchased

Parcel Number 235464


Time on Market

Space Allocation Flex Space 35,000 SF

Total 35,000 SF

Financing Details CMFG Life Insurance Company provided a 10 year $2,700,000 loan.

Other:





Property Name Property Type Warehouse

Address 126 Texas Ave Building Area (SF) 106,060NRA / 106,060GBA

City San Marcos No. of Bldgs./Floors 4 / 1

State/ZIP/County TX / 78666 / Hays Year Built/Renovated -- / --

Metro (Submarket) Austin (Outside Delineated Areas) Ceiling Height (Ft) --

Comments


Sale Date 16 Oct 2017 Reis Cap Rate Analysis ProformaSale Price $3,625,000 EST All per square foot figures are on an annual basis


Vacancy at Sale Potential Rent Revenue --Vacancy Loss/Rate --

Seller 1. Sid Orton Investments / (512) 860-2001 / 2430 W 35th St,Austin, TX 787032. 126 Texas Avenue LP




Buyer 1. Texas Wonderworld LLC / 812 San Antonio St, Ste 105, Austin,TX 78701








Other Broker L&M Supply

Interest Purchased

Parcel Number R47135


Time on Market

Space Allocation Warehouse/Storage Space 106,060 SF

Total 106,060 SF

Financing Details A $2,900,000 loan was provided for.

Other:

Click here for a glossary of terms, or go to https://se.reis.com/ReisSEGlossary.pdf

https://se.reis.com/ReisSEGlossary.pdf


About Reis

Reis provides commercial real estate market information and analytical tools to real estate professionals through itsReis Services subsidiary. Reis Services, including its predecessors, was founded in 1980. Reis maintains a proprietarydatabase containing detailed information on commercial properties in metropolitan markets and neighborhoodsthroughout the U.S. The database contains information on apartment, office, retail, warehouse/distribution,flex/research & development, self storage, seniors housing properties and affordable housing, and is used by realestate investors, lenders and other professionals to make informed buying, selling and financing decisions. In addition,Reis data is used by debt and equity investors to assess, quantify and manage the risks of default and loss associatedwith individual mortgages, properties, portfolios and real estate backed securities. Reis currently provides itsinformation services to many of the nation's leading lending institutions, equity investors, brokers and appraisers.

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