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SUB MARKET REPORT THE WOODLANDSHOUSTON MARKET 2019

USA +1 (832) 482-9367 · MEX +52 (55) 5351-0900 · 25219 Kuykendahl Rd, Ste 240, Tomball TX, 77375

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OFFICE SUBMARKET REPORT

Submarket Key Statistics 2

Leasing 3

Rent 7

Construction 9

Sales 13

Sales Past 12 Months 14

Supply & Demand Trends 16

Rent & Vacancy 18

Sale Trends 20

The Woodlands Office

9/6/2019Copyrighted report licensed to Tamborrel Properties - 786369.

Luis Tamborrel, Tamborrel Properties 281-813-6027

OverviewThe Woodlands Office

1 M 628 K 10.3% 0.4%12 Mo Deliveries in SF 12 Mo Net Absorption in SF Vacancy Rate 12 Mo Rent Growth

The Woodlands continues to be seen as one of the mostattractive office nodes in the Houston metro. It has grownin importance to be in the conversation among theHouston area’s premier office clusters such as the CBD,Galleria/Uptown, the Energy Corridor, and GreenwayPlaza in terms of lofty asking rents, strong absorption,and significant construction activity.

The recent opening of the Grand Parkway and newdevelopment in Springwoods Village—which includedlarge tenant moves by ExxonMobil, SouthwesternEnergy, HP Inc., and ABS—has contributed to the area’sgrowth story.

The Woodlands continues to transform into a largely self-sustaining exurban core area, and long-term, the area ispoised to remain one of the strongest office submarketsin the metro, as it offers one of the few trulylive/work/play environments outside of the 610 Loop.

The submarket today is one of the best-performingoffice submarkets in the metropolitan area, with avacancy rate of 10.3% outperforming both its peer setand the metro average, and with significant preleasingmomentum to boot.

Landlords in The Woodlands breathed a sigh of relief in19Q3, as Occidental announced plans to keepAnadarko's campus in The Woodlands post-merger. It isstill unclear how much of that space will be used, as themerger is likely to lead to some employmentreduncancies. However, this was welcome news, asOccidental had previously purchased ConocoPhillips'Woodcreek campus in 2018 with plans to move.Occidental announced that it will actually sell thatcampus and remain at Greenway Plaza and atAnadarko's campus in The Woodlands.

KEY INDICATORS

Market RentVacancy RateRBACurrent Quarter Availability RateNet Absorption

SFDeliveries SF

UnderConstruction

$35.368.3%13,999,4904 & 5 Star 11.8% (225,870) 48,840 180,000

$28.5414.3%7,218,7743 Star 16.7% (121,630) 8,000 140,707

$23.009.7%1,910,1741 & 2 Star 13.0% (6,486) 3,584 7,168

$32.2510.3%23,128,438Submarket 13.5% (353,986) 60,424 327,875

ForecastAverage

HistoricalAverage

12 MonthAnnual Trends Peak When Trough When

9.4%9.1%1.4%Vacancy Change (YOY) 16.6% 2004 Q1 1.5% 1999 Q1

374,938810,518628 KNet Absorption SF 5,942,916 2015 Q2 (66,765) 2010 Q3

514,448910,2711 MDeliveries SF 5,770,933 2015 Q2 48,380 2010 Q3

1.2%1.9%0.4%Rent Growth 13.9% 2008 Q1 -7.5% 2009 Q4

N/A$56.9M$229 MSales Volume $229.1M 2019 Q2 $374.0K 2002 Q3


Luis Tamborrel, Tamborrel Properties 281-813-6027 Page 2

LeasingThe Woodlands Office

The Woodlands boasted a vacancy rate of 10.3% as of19Q3, which was the lowest out of the five largestsubmarkets in the Houston metro by a wide margin.Having absorbed 630,000 SF over the past year as of19Q2, The Woodlands led all Houston-area submarketsin terms of demand by a similarly wide margin. Thesubmarket's largest move-in so far this year occurred inJanuary 2019, when the American Bureau of Shipping(ABS) began to occupy the entire 326,800 SF ofCityPlace 2 in Springwoods Village. In December 2018,HP Inc. moved into 233,500 SF in HP Building 1 and144,900 SF in HP Building 2, also in SpringwoodsVillage.

Vacancy in The Woodlands peaked at 12% in 17Q1before compressing to its current level. Demand in TheWoodlands remains robust and has benefited from theflight-to-quality trend experienced elsewhere inHouston's office market. The area is a prime destinationfor new build-to-suit corporate campuses, wherecompanies can build highly amenitized complexes at afraction of the cost to a similar development in the urbancore. And with the growing Woodlands Waterway mixed-use town center, live/work/play amenities are plentifulnearby. Soon, the CityPlace mixed-use development will

add to the list of mixed-use town centers in the area. Atfull build-out, Springwoods Village could grow toencompass over 8 million SF of office space in additionto 5,000 housing units, 500 hotel rooms, and more than1 million SF of retail.

The largest lease signed so far in 2019 was for HR andbenefit administration company Alight Solutions' 180,000SF at 8770 New Trails Dr., a 4 Star office building beingdeveloped by The Howard Hughes Corporation thatshould deliver in May 2020. Both of the largest leasessigned in 2018 were for energy company lease renewals:Huntsman’s 250,000 SF at 10003 Woodloch Forest Dr.for 12 years and ARC Holdings, LP’s 190,000 SF at4000 Technology Forest Dr. for a one-year extension.ExxonMobil announced that it would lease 26,000 SF,and Entergy announced that it would lease 54,000 SF atLake Front North, a complex recently acquired fromChicago Bridge & Iron by The Howard HughesCorporation.

The submarket's vacancy rate should generally remainbelow 9% over the next five years, thanks to a dearth ofnew supply (owing to its master-planned communities)and steady demand.

NET ABSORPTION, NET DELIVERIES & VACANCY




VACANCY RATE

AVAILABILITY RATE




4 & 5 STAR MOST ACTIVE BUILDINGS IN SUBMARKET - PAST 12 MONTHS

Property Name/Address Rating RBA Deals SF Vacancy (QTD) Net Absorption SF (QTD)

65,997480 Wildwood Forest Dr

Wildwood Corporate Centre II201,933 7 22.3% 46,683

31,8051575 Sawdust Rd

Sierra Pines II152,999 5 25.5% 15,141

137,63425700 Interstate 45

Havenwood Office Park240,470 7 35.3% 8,508

48,2341780 Hughes Landing Blvd

Three Hughes Landing320,815 10 19.0% 5,068

28,3842107 Research Forest Dr

Lake Front North152,827 2 7.3% 2,281

10,9858665 New Trails Dr

Bldg IV63,209 1 49.4% 1,030

4,30821 Waterway Ave

21 Waterway102,816 1 10.1% 0


Two Hughes Landing197,714 1 2.2% 0

4,6002829 Technology Forest Blvd

Black Forest Technology Park81,865 1 0% 0

10,1919320 Lakeside Blvd

Building 265,988 1 0% 0

9,4261700 City Plaza Dr

CityPlace 1149,500 1 82.0% 0

3,8006922 W Rayford Rd

13,384 1 48.9% 0

3,5007107 FM 2920

11,500 1 0% 0

4,0539180 Pinecroft Dr

The Woodlands Medical Plaza 4171,996 1 41.3% 0


Hughes Landing332,000 2 3.6% 0

2,6608777 W Rayford Rd

16,000 6 0% 0


One Hughes Landing197,719 3 6.5% 0

5,00017002 Glen Eagle Dr N

10,000 1 50.0% (2,500)

13,34510077 Grogans Mill Rd

Parkwood I100,240 3 19.7% (9,353)

19,6752445 Technology Forest Blvd

Building 4285,665 2 4.8% (9,464)




3 STAR MOST ACTIVE BUILDINGS IN SUBMARKET - PAST 12 MONTHS

Property Name/Address Rating RBA Deals SF Vacancy (QTD) Net Absorption SF (QTD)

16,4221450 Lake Robbins Dr

Town Center I139,845 4 27.4% 17,809

24,65017350 St. Lukes Way

Medical Arts Center II96,400 4 7.1% 3,353

7,9902202 Timberloch Pl

50,211 3 13.7% 2,023

5,11121021 Springbrook Plaza Dr

Springbrook Plaza Office Bldg25,835 4 5.7% 1,107

6,00518 Augusta Pines Dr

Augusta Pines Golf Club100,000 8 1.5% 425

11,78319221 Interstate 45 S

Southwood Tower78,626 7 9.6% 0

11,009920 Medical Plaza Dr

Memorial Woodlands Profess…95,322 7 0% 0


51,947 3 20.3% 0

4,94533300 Egypt Ln

Magnolia Crossing - Bldg B7,394 4 20.2% 0

64325329 Budde Rd

Building 8- Office Suite Soluti…4,900 4 6.0% 0

2,8658111 Ashlane Way

14,200 7 3.8% (342)

2,756431 Nursery Rd

Pines Crossing - Bldg A6,851 4 10.7% (731)

1,65026310 Oak Ridge Dr

18,000 5 15.4% (771)


50,038 3 14.5% (1,202)

11,561719 Sawdust Rd

Woodlandgate Plaza I56,675 11 33.4% (2,160)

11,56317191 St. Lukes Way

Sadler Clinic40,382 3 6.3% (2,540)


10210 Grogans Mill Road20,000 37 38.6% (5,021)


107,835 4 17.4% (5,491)


Ten Two-Hundred80,180 8 20.4% (6,156)


Town Center Plaza41,166 4 44.1% (10,553)



RentThe Woodlands Office

Asking rents in The Woodlands are about $32.00/SF,about 15% higher than the metro average and the third-highest in the region after the CBD and Galleria/Uptownsubmarkets as of 19Q3. Market-rate rental growth wasflat as of 19Q2. The submarket has not managed toescape the large amount of competitive available 4 & 5Star space in other submarkets, particularly in WestHouston and inside the 610 Loop. Rents here fell from

their 14Q4 peak, when oil prices began to fall, and seemto have stabilized north of $35/SF for 4 & 5 Star andnorth of $31/SF overall. Looking forward, The Woodlandsshould benefit from a compressing vacancy rate acrossthe Houston metro as the outlooks for the energyindustry and the local office market begin to turn morebroadly positive.

MARKET RENT GROWTH (YOY)



RentThe Woodlands Office

MARKET RENT PER SQUARE FOOT



ConstructionThe Woodlands Office

There is currently 330,000 SF under construction in TheWoodlands. This includes the 180,000-SF AlightSolutions building at 8770 New Trails Dr., which is beingdeveloped by The Howard Hughes Corporation. It alsoincludes Warmack Investments' 135,000-SF Building 9at Research Forest Lakeside.

While the construction cycle has wound downsignificantly in the Houston metro, The Woodlands stillranks in the top five submarkets for square footageunder construction, even though this figure is downsignificantly from the more than 6 million SF under

construction in 2013, which included the ExxonMobilcampus. Few large projects are expected to start in thenear term as the Houston metro plays catch-up to itsrecent construction cycle and attempts to absorb theincrease in deliveries.

Of the 11 million SF that delivered this cycle, 10 millionSF was 4 & 5 Star (87%). The Woodlands ranks first fortrailing 12-month deliveries in the metro, as HP Inc.'sBuildings 1 and 2 and CityPlace 2, with anchor tenantABS, all delivered, totaling over 800,000 SF.

DELIVERIES & DEMOLITIONS




97,232 1,038,888 324,291 1,223,856All-Time Annual Avg. SF Delivered SF Past 4 Qtrs Delivered SF Next 4 Qtrs Proposed SF Next 4 Qtrs

PAST 4 QUARTERS DELIVERIES, UNDER CONSTRUCTION, & PROPOSED

PAST & FUTURE DELIVERIES IN SQUARE FEET




RECENT DELIVERIES

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

Jan-2019350 Nursery Rd

Building 33,584 1 Sep-2019

-

-1

Oct-201825111 Budde Rd

8,000 1 Jul-2019-

A C Larsen2

May-20181401 Lake Plaza Dr

City Place48,840 2 Jul-2019

Patrinely Group, LLC

Patrinely Group, LLC3

Jun-20181700 City Plaza Dr

CityPlace 1149,500 5 Jun-2019



Sep-2017121 Vision Park Blvd

Vision Park Medical58,000 3 Apr-2019

Everson Developments, LLC

Avanti Senior Living5

Jun-2018350 Nursery Rd

Building 24,182 1 Apr-2019

-

Houston International Realty6


Building 14,200 1 Apr-2019

-

Matthew Grafton7

Aug-20171350 Rayford Park Rd

Bldg 112,000 1 Feb-2019

-

Jose M Guerrero8

Sep-20171340 Rayford Park Rd

Bldg 212,000 2 Feb-2019

-

Jose M Guerrero9

Sep-20171330 Rayford Park Rd

Bldg 312,000 1 Feb-2019

-

Jose M Guerrero10

Jan-2018250 Ed English Dr

Bldg 5 Unit B6,540 1 Jan-2019

-

Ghana Khadka11

Jun-201817002 Glen Eagle Dr N

10,000 2 Jan-2019-

Habitat For Humanity Montgomer…12

Apr-201825511 Budde Rd

Bldg 364,840 2 Dec-2018

-

-13

Feb-20171701 City Plaza Dr

CityPlace 2326,800 10 Nov-2018

Barker Patrinely Group, Inc


Jul-201710300 Energy Dr

HP Building 1233,516 4 Nov-2018


Northridge Capital15

Jul-201710400 Energy Dr

HP Building 2144,886 5 Nov-2018


Northridge Capital16

Jan-201826406 Oak Ridge Dr

8,000 1 Aug-2018-

Houston International Realty17

Oct-201761 Carlton Woods Dr

Carlton Woods & Sterlin…11,500 2 Jul-2018

-

Steve S Polakoff18

UNDER CONSTRUCTION


Jun-20198770 New Trails Dr

Alight Solutions180,000 4 Feb-2020

The Howard Hughes Corporation

The Howard Hughes Corporation1

Aug-20199709 Lakeside Blvd

Building 9134,938 6 Aug-2020

DBR Engineering Consultants

Warmack Investments2




UNDER CONSTRUCTION


Jan-201926211 Kuykendahl Rd

Ipanema Business Park5,000 1 Dec-2019

-

-3

Jul-2019350 Nursery Rd

Building 43,584 1 Jan-2020

-

-4


Building 53,584 1 Dec-2020

-

-5

Apr-201918708 Centro Main St

Centro769 1 Oct-2019

-

Palmetto Homes6

PROPOSED


Jan-202023680 Interstate 45

Spring Crossing I385,500 14 Jun-2020

Skanska USA Commercial Devel…

SCD Acquisitions LLC1

Jan-202023680 Interstate 45

Spring Crossing II302,900 12 Jun-2020

Skanska USA Commercial Devel…

SCD Acquisitions LLC2

Nov-2019815 Northgate Crossing Blvd

Building 2144,000 6 Jan-2020

Halberdier Real Estate LLC

Feliciano Corporation3

Sep-201917120 St Lukes Way

120,400 4 Jul-2020-

-4

Sep-201918386 I-45 Hwy S

65,000 4 Jan-2020-

-5

Sep-201917835 Interstate 45 S

Metro Medical36,000 3 Mar-2020

-

ReMax Evolve6

Jan-2020Creekside Park

Creekside Park - Phase I33,600 2 May-2020

-

-7

Jan-2020Creekside Park

Creekside Park - Phase II33,600 2 May-2020

-

-8

Sep-20191875 Country Ln

31,695 3 Sep-2020-

Amazing Spaces9

Sep-201925806 Budde Rd


-

A & J Smalley Lp10

Sep-201925806 Budde Rd


-

A & J Smalley Lp11

Sep-201922565 N I-45 Fwy

20,000 2 Mar-2020-

Sandeep Patel12

Sep-2019250 Ed English Dr

5,036 - Feb-2020-

-13

Sep-2019FM 2920

Build-to-Suit Office Build…4,125 1 Dec-2019

-

Law Office of John K. Tyler14



SalesThe Woodlands Office

Investment in The Woodlands never seems to amount toa large percentage of inventory, as large energycorporate owner-occupiers take up a lot of the squarefootage in the submarket, and transaction activityremained muted in 2018 as well.

By far the largest sale in 2019 involved the two-propertyportfolio sale of HP, Inc. Buildings 1 and 2 inSpringwoods Village for an undisclosed price. The twonewly constructed, 5 Star, LEED-certified office buildingstotal approximately 380,000 SF. They were purchased byWashington, D.C.-based Northridge Capital from aparternship between CDC Development, Patrinely Group,and USAA. Prior to the sale, tenant HP Inc. signed a 12-year lease and will occupy 100% of both buildings,otherwise known as HP Plaza. The buildings are locatedin the CityPlace mixed-use development, at 10300 and10400 Energy Dr. in Springwoods Village, a 2,000-acremaster-planned community north of Houston. Thecompany moved its 2,400 Houston employees to the

new campus following the flooding and damagesustained in 2016 and 2017 to its prior campus nearCypress Creek.

The most notable sale in 2018 occurred in September,when The Howard Hughes Corporation acquired twooffice buildings located at 2103 Research Forest Dr. andan adjacent 3.46-acre vacant land parcel fromMcDermott International, Inc. for $53 million. Theproperty is being repositioned as Lake Front North inHughes Landing. The property was originally owned byChicago Bridge & Iron Co. (CB&I), which merged withMcDermott International earlier this year, leavingMcDermott International with ownership of the property.Both properties were considered at 0% occupancy at thetime of sale. The buyer acquired the buildings belowreplacement cost and intends to re-tenant the buildingsas soon as possible. McDermott International is also thelandlord of the surrounding properties.

SALES VOLUME & MARKET SALE PRICE PER SF



Sales Past 12 MonthsThe Woodlands Office

46 6.3% $343 29.1%Sale Comparables Avg. Cap Rate Avg. Price/SF Avg. Vacancy At Sale

SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS

Sales Attributes Low Average Median High

Sale Price $252,000 $22,834,290 $795,000 $109,476,934

Price Per SF $71 $343 $211 $469

Cap Rate 6.0% 6.3% 6.0% 6.9%

Time Since Sale in Months 0.1 5.4 5.6 12.0

Property Attributes Low Average Median High

Building SF 2,044 49,492 7,020 257,500

Stories 1 2 1 10

Typical Floor SF 1,113 20,132 6,540 189,974

Vacancy Rate At Sale 0% 29.1% 0% 100%

Year Built 1968 1997 2003 2019

Star Rating 2.8



Sales Past 12 MonthsThe Woodlands Office

Property Name - Address Rating Yr Built Bldg SF Vacancy Price Price/SF

Property

Sale Date

Sale

Cap Rate

RECENT SIGNIFICANT SALES

-1 HP Building 12018 233,516 0% $109,476,934 $469

10300 Energy Dr4/4/2019 6.0%

-2 HP Building 22018 144,886 0% $63,523,066 $438

10400 Energy Dr4/4/2019 6.0%

-3 Lake Front North2003 105,864 100% $30,215,552 $285

2103 Research Forest Dr9/7/2018 -

-4 Lake Front North2014 152,827 63.1% $21,997,344 $144

2107 Research Forest Dr9/7/2018 -

-5 Bldg 72018 12,000 0% $850,000 $71

1311 Rayford Rd1/7/2019 -

-6 214 Nursery Rd1968 3,966 0% $740,000 $1874/10/2019 -

-7 26023 Oak Ridge Dr1971 2,044 0% $535,000 $2627/20/2019 -

-8 1625 Rayford Rd1998 5,200 0% $453,000 $873/18/2019 -

-9 2219 Sawdust Rd2013 1,250 18.0% $305,000 $24412/3/2018 -

-10 25215 Oakhurst Dr1968 2,200 0% $300,000 $13610/22/2018 -

-11 Building 12014 1,200 0% $282,500 $235

2219 Sawdust Rd5/1/2019 -

-12 25410 Oakhurst Dr1970 2,258 0% $252,000 $1124/23/2019 -

-13 Building 72014 1,226 0% - -

150 Pine Forest Dr4/9/2019 -

-14 Southwestern Energy HQ2014 257,500 52.8% - -

10000 Energy Dr7/15/2019 -

-15 Bldg 52006 1,250 0% - -

7 Grogans Park Dr6/7/2019 -

-16 25511 Oakhurst Dr1970 2,226 100% - -5/31/2019 -

-17 22321 Gosling Rd2014 3,408 0% - -5/31/2019 -

-18 Taylor Building2008 4,500 66.7% - -

25511 Budde Rd5/23/2019 -

-19 26113 Oak Ridge Dr- 8,929 0% - -5/10/2019 -

-20 Building 132014 1,225 0% - -

2219 Sawdust Rd9/4/2019 -



Supply & Demand TrendsThe Woodlands Office

OVERALL SUPPLY & DEMAND

Net AbsorptionInventory

% of Inv Construction RatioSF SF Growth % Growth SFYear

2023 537,814 2.2% 1.9%478,962 1.124,856,547

2022 485,380 2.0% 1.3%321,310 1.524,318,733

2021 355,786 1.5% 1.8%417,410 0.923,833,353

2020 366,853 1.6% 1.5%350,695 1.023,477,567

2019 311,122 1.4% 1.7%403,747 0.823,110,714

YTD 328,846 1.4% 0.9%219,473 1.523,128,438

2018 802,268 3.6% 3.0%692,704 1.222,799,592

2017 (47,642) -0.2% 0.9%202,938 -21,997,324

2016 690,645 3.2% 0.8%186,624 3.722,044,966

2015 4,719,512 28.4% 18.7%3,992,370 1.221,354,321

2014 3,621,898 27.8% 21.8%3,622,817 1.016,634,809

2013 1,018,463 8.5% 5.5%712,795 1.413,012,911

2012 201,853 1.7% 4.9%590,154 0.311,994,448

2011 249,509 2.2% 5.9%691,126 0.411,792,595

2010 125,848 1.1% 0.2%28,535 4.411,543,086

2009 404,910 3.7% 0.9%105,739 3.811,417,238

2008 1,365,432 14.2% 7.7%846,426 1.611,012,328

2007 189,284 2.0% 3.1%303,350 0.69,646,896

4 & 5 STAR SUPPLY & DEMAND



2023 613,696 4.0% 3.4%535,063 1.115,897,991

2022 560,476 3.8% 2.7%405,352 1.415,284,295

2021 426,451 3.0% 3.0%439,332 1.014,723,819

2020 297,878 2.1% 1.8%260,375 1.114,297,368

2019 266,340 1.9% 2.6%361,481 0.713,999,490

YTD 266,340 1.9% 2.3%319,862 0.813,999,490

2018 713,028 5.5% 4.9%679,434 1.013,733,150

2017 (60,953) -0.5% 2.3%294,529 -13,020,122

2016 564,905 4.5% 1.2%160,890 3.513,081,075

2015 4,580,001 57.7% 31.9%3,994,493 1.112,516,170

2014 3,284,084 70.6% 42.6%3,377,939 1.07,936,169

2013 781,096 20.2% 9.9%462,340 1.74,652,085

2012 0 0% 1.0%37,425 03,870,989

2011 65,988 1.7% 5.6%215,430 0.33,870,989

2010 0 0% 1.3%47,914 03,805,001

2009 0 0% 2.2%82,926 03,805,001

2008 908,893 31.4% 16.1%611,630 1.53,805,001

2007 0 0% -0.9%(26,282) -2,896,108



Supply & Demand TrendsThe Woodlands Office

3 STAR SUPPLY & DEMAND



2023 172 0% 0.1%7,087 07,360,204

2022 196 0% -0.2%(15,120) -7,360,032

2021 226 0% 0.6%41,508 07,359,836

2020 140,067 1.9% 1.9%141,672 1.07,359,610

2019 55,491 0.8% 1.1%82,127 0.77,219,543

YTD 54,722 0.8% -1.1%(76,024) -7,218,774

2018 79,240 1.1% 0.3%18,189 4.47,164,052

2017 13,311 0.2% -1.3%(90,388) -7,084,812

2016 119,940 1.7% 0.6%45,749 2.67,071,501

2015 126,611 1.9% -0.4%(30,360) -6,951,561

2014 333,028 5.1% 3.3%226,232 1.56,824,950

2013 237,367 3.8% 3.7%237,386 1.06,491,922

2012 188,311 3.1% 7.2%451,995 0.46,254,555

2011 156,521 2.6% 6.3%381,183 0.46,066,244

2010 111,948 1.9% 1.6%97,483 1.15,909,723

2009 376,930 7.0% 0.9%52,545 7.25,797,775

2008 443,577 8.9% 4.0%216,013 2.15,420,845

2007 145,056 3.0% 5.1%254,134 0.64,977,268

1 & 2 STAR SUPPLY & DEMAND



2023 (76,054) -4.5% -4.0%(63,188) -1,598,352

2022 (75,292) -4.3% -4.1%(68,922) -1,674,406

2021 (70,891) -3.9% -3.6%(63,430) -1,749,698

2020 (71,092) -3.8% -2.8%(51,352) -1,820,589

2019 (10,709) -0.6% -2.1%(39,861) -1,891,681

YTD 7,784 0.4% -1.3%(24,365) -1,910,174

2018 10,000 0.5% -0.3%(4,919) -1,902,390

2017 0 0% -0.1%(1,203) -1,892,390

2016 5,800 0.3% -1.1%(20,015) -1,892,390

2015 12,900 0.7% 1.5%28,237 0.51,886,590

2014 4,786 0.3% 1.0%18,646 0.31,873,690

2013 0 0% 0.7%13,069 01,868,904

2012 13,542 0.7% 5.4%100,734 0.11,868,904

2011 27,000 1.5% 5.1%94,513 0.31,855,362

2010 13,900 0.8% -6.4%(116,862) -1,828,362

2009 27,980 1.6% -1.6%(29,732) -1,814,462

2008 12,962 0.7% 1.1%18,783 0.71,786,482

2007 44,228 2.6% 4.3%75,498 0.61,773,520



Rent & VacancyThe Woodlands Office

OVERALL RENT & VACANCY

Market Rent

Per SF Index % Growth Vs Hist PeakYear

Vacancy

SF Percent Ppts Chg

2023 111 1.5% -2.9%$34.20 2,354,785 9.5% 0%

2022 109 1.5% -4.3%$33.70 2,295,633 9.4% 0.5%

2021 108 1.5% -5.7%$33.21 2,131,282 8.9% -0.4%

2020 106 1.2% -7.1%$32.72 2,192,625 9.3% -0.1%

2019 105 0.5% -8.2%$32.35 2,176,129 9.4% -0.5%

YTD 105 0.1% -8.5%$32.25 2,377,018 10.3% 0.3%

2018 104 0.6% -8.6%$32.21 2,267,645 9.9% 0.1%

2017 104 -0.5% -9.1%$32.02 2,158,081 9.8% -1.1%

2016 104 -4.4% -8.7%$32.18 2,408,661 10.9% 2.0%

2015 109 -4.5% -4.5%$33.64 1,904,640 8.9% 1.8%

2014 114 5.8% 0%$35.23 1,177,498 7.1% 0.2%

2013 108 7.2% -5.5%$33.31 889,808 6.8% 2.0%

2012 101 10.9% -11.8%$31.08 584,140 4.9% -3.4%

2011 91 4.7% -20.5%$28.01 972,441 8.2% -4.0%

2010 87 -6.2% -24.0%$26.76 1,414,058 12.3% 0.7%

2009 92 -7.5% -19.0%$28.52 1,316,745 11.5% 2.3%

2008 100 7.0% -12.4%$30.85 1,017,574 9.2% 4.1%

2007 93 13.5% -18.2%$28.82 498,568 5.2% -1.3%

4 & 5 STAR RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2023 104 1.5% -6.3%$37.68 1,372,518 8.6% 0.2%

2022 103 1.5% -7.7%$37.12 1,294,026 8.5% 0.7%

2021 101 1.6% -9.1%$36.56 1,139,042 7.7% -0.3%

2020 99 1.3% -10.5%$35.98 1,152,076 8.1% 0.1%

2019 98 1.0% -11.7%$35.51 1,114,678 8.0% -0.8%

YTD 98 0.5% -12.1%$35.36 1,156,229 8.3% -0.5%

2018 97 0% -12.6%$35.17 1,209,751 8.8% -0.2%

2017 97 -1.7% -12.6%$35.16 1,176,157 9.0% -2.7%

2016 99 -5.7% -11.1%$35.76 1,531,639 11.7% 2.7%

2015 105 -5.8% -5.8%$37.91 1,127,624 9.0% 2.2%

2014 111 5.4% 0%$40.22 542,116 6.8% -0.6%

2013 105 8.0% -5.1%$38.18 347,362 7.5% 6.7%

2012 98 11.1% -12.1%$35.35 28,606 0.7% -1.0%

2011 88 5.2% -20.9%$31.82 66,031 1.7% -4.0%

2010 84 -6.8% -24.8%$30.25 215,473 5.7% -1.3%

2009 90 -10.3% -19.3%$32.46 263,387 6.9% -2.2%

2008 100 8.6% -10.0%$36.21 346,313 9.1% 7.4%

2007 92 16.2% -17.1%$33.35 49,050 1.7% 0.9%



Rent & VacancyThe Woodlands Office

3 STAR RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2023 130 1.4% 4.0%$29.95 844,501 11.5% -0.1%

2022 128 1.3% 2.6%$29.54 851,418 11.6% 0.2%

2021 126 1.2% 1.2%$29.15 836,104 11.4% -0.6%

2020 125 0.8% 0%$28.79 877,387 11.9% -0.3%

2019 124 -0.8% -0.8%$28.57 878,993 12.2% -0.5%

YTD 124 -0.9% -0.9%$28.54 1,035,445 14.3% 1.7%

2018 125 1.8% 0%$28.80 904,699 12.6% 0.7%

2017 123 2.5% -1.7%$28.30 843,648 11.9% 1.4%

2016 120 -0.9% -4.1%$27.61 739,949 10.5% 0.9%

2015 121 -2.8% -3.3%$27.86 665,758 9.6% 2.1%

2014 124 8.2% -0.5%$28.66 508,787 7.5% 1.3%

2013 115 3.3% -8.1%$26.48 401,991 6.2% -0.2%

2012 111 13.4% -11.0%$25.63 402,010 6.4% -4.5%

2011 98 2.7% -21.5%$22.60 665,694 11.0% -4.1%

2010 95 -5.1% -23.6%$22.01 890,356 15.1% 0%

2009 101 0.6% -19.5%$23.19 875,891 15.1% 4.9%

2008 100 3.8% -20.0%$23.05 551,506 10.2% 3.7%

2007 96 7.1% -22.9%$22.21 323,942 6.5% -2.5%

1 & 2 STAR RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2023 119 1.5% 2.2%$24.21 137,766 8.6% -0.4%

2022 118 1.4% 0.7%$23.87 150,189 9.0% 0%

2021 116 1.3% -0.7%$23.53 156,136 8.9% 0%

2020 114 0.8% -2.0%$23.23 163,162 9.0% -0.7%

2019 113 0.4% -2.8%$23.04 182,458 9.6% 1.6%

YTD 113 0.2% -2.9%$23.00 185,344 9.7% 1.7%

2018 113 1.8% -3.2%$22.95 153,195 8.1% 0.7%

2017 111 -0.5% -4.8%$22.55 138,276 7.3% 0.1%

2016 112 -4.4% -4.4%$22.67 137,073 7.2% 1.3%

2015 117 4.0% 0%$23.70 111,258 5.9% -0.9%

2014 112 0% -3.9%$22.79 126,595 6.8% -0.8%

2013 112 15.3% -3.9%$22.78 140,455 7.5% -0.7%

2012 97 -1.2% -16.6%$19.77 153,524 8.2% -4.8%

2011 99 7.1% -15.5%$20.02 240,716 13.0% -3.9%

2010 92 -2.9% -21.1%$18.69 308,229 16.9% 7.1%

2009 95 -5.2% -18.8%$19.24 177,467 9.8% 3.1%

2008 100 1.3% -14.3%$20.31 119,755 6.7% -0.4%

2007 99 9.7% -15.4%$20.05 125,576 7.1% -2.0%



Sale TrendsThe Woodlands Office

OVERALL SALES

Completed Transactions (1)

Turnover Avg Price/SFDeals VolumeYear

Market Pricing Trends (2)

Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate

2023 -- - -- 152- $261.94 7.4%

2022 -- - -- 152- $260.57 7.4%

2021 -- - -- 152- $261.16 7.3%

2020 -- - -- 151- $259.22 7.2%

2019 -- - -- 147- $253.34 7.2%

YTD $176.1 M35 5.0% $434.77$25,118,571 1466.0% $251.80 7.2%

2018 $55.3 M33 3.0% $199.60$10,849,708 1477.6% $253.02 7.1%

2017 $5.2 M27 1.2% $181.12$2,605,750 1476.0% $252.64 7.0%

2016 $15.7 M34 2.1% $354.27$3,785,448 1497.6% $256.10 6.9%

2015 $147.9 M35 4.1% $233.52$14,792,893 1496.0% $256.89 6.8%

2014 $30.6 M52 1.9% $268.53$5,944,602 1477.1% $253.43 6.7%

2013 $124.9 M27 5.8% $338.11$31,225,000 1346.2% $229.92 7.0%

2012 $218.4 M45 10.2% $218.39$16,800,292 1248.1% $212.84 7.3%

2011 $3.6 M19 1.1% $73.21$1,104,333 11515.0% $197.68 7.7%

2010 $70.3 M19 4.6% $248.74$17,500,000 1027.5% $175.14 8.3%

2009 $46.9 M18 2.1% $211.15$22,635,000 88- $151.99 9.3%

2008 $95.7 M41 4.7% $268.73$15,651,667 1008.0% $171.89 8.8%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.

(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

4 & 5 STAR SALES





2023 -- - -- 154- $291.13 7.2%

2022 -- - -- 153- $289.55 7.1%

2021 -- - -- 154- $290.19 7.0%

2020 -- - -- 152- $287.85 7.0%

2019 -- - -- 149- $280.81 7.0%

YTD $173.0 M4 6.0% $457.19$86,500,000 1486.0% $278.87 7.0%

2018 $22.0 M4 1.7% $143.94$21,997,344 1496.9% $281.46 6.9%

2017 -- - -- 148- $279.23 6.8%

2016 $0 M1 0% -- 149- $281.00 6.7%

2015 $0 M1 0.2% -- 149- $281.62 6.6%

2014 $0 M1 0.1% -- 147- $277.40 6.5%

2013 $124.5 M2 7.9% $340.10$62,250,000 1355.9% $253.98 6.8%

2012 $126.8 M3 14.0% $234.35$42,266,667 1258.1% $235.19 7.1%

2011 -- - -- 116- $218.77 7.4%

2010 -- - -- 102- $192.62 8.1%

2009 $45.0 M1 5.4% $217.03$45,000,000 88- $166.85 9.0%

2008 $85.2 M1 8.1% $276.79$85,250,000 100- $188.78 8.5%





Sale TrendsThe Woodlands Office

3 STAR SALES





2023 -- - -- 149- $232.99 7.7%

2022 -- - -- 148- $231.89 7.6%

2021 -- - -- 148- $232.50 7.5%

2020 -- - -- 147- $231.10 7.5%

2019 -- - -- 145- $226.69 7.5%

YTD $1.8 M20 3.9% $88.95$518,333 144- $225.74 7.5%

2018 $31.5 M19 5.0% $273.94$15,239,776 1438.4% $224.90 7.4%

2017 $5.2 M18 3.2% $181.12$2,605,750 1456.0% $227.41 7.2%

2016 $13.2 M23 3.3% $391.38$4,230,598 1497.6% $233.67 7.0%

2015 $132.4 M23 10.3% $238.08$16,553,002 1506.0% $234.78 7.0%

2014 $29.0 M40 3.5% $273.33$9,383,171 1487.1% $232.78 6.9%

2013 $0 M8 4.5% -- 1326.7% $207.39 7.3%

2012 $89.3 M26 9.1% $203.03$12,759,779 1228.2% $191.99 7.6%

2011 $0.7 M13 1.3% $134.08$450,000 11315.0% $177.80 8.0%

2010 $70.3 M14 8.3% $248.74$17,500,000 1027.5% $159.50 8.6%

2009 $1.9 M16 0.6% $129.34$270,000 89- $138.90 9.5%

2008 $10.0 M39 3.8% $222.33$2,043,750 1008.0% $156.78 9.0%



1 & 2 STAR SALES





2023 -- - -- 149- $152.83 8.2%

2022 -- - -- 148- $151.92 8.1%

2021 -- - -- 149- $152.16 8.0%

2020 -- - -- 148- $151.19 8.0%

2019 -- - -- 145- $148.25 8.0%

YTD $1.3 M11 1.7% $212.15$637,500 144- $147.59 8.0%

2018 $1.8 M10 4.2% $195.44$885,823 1436.5% $146.35 7.9%

2017 $0 M9 1.7% -- 145- $148.83 7.7%

2016 $2.4 M10 11.7% $234.18$2,450,000 151- $154.29 7.5%

2015 $15.5 M11 7.5% $200.69$7,752,454 152- $155.15 7.4%

2014 $1.6 M11 3.7% $202.80$786,750 148- $151.83 7.4%

2013 $0.4 M17 4.9% $120.05$200,000 132- $134.80 7.8%

2012 $2.3 M16 6.3% $119.94$761,782 121- $124.24 8.2%

2011 $2.9 M6 3.1% $65.57$1,431,500 112- $114.80 8.6%

2010 $0 M5 2.1% -- 101- $103.26 9.2%

2009 $0 M1 0.2% -- 88- $90.15 10.3%

2008 $0.5 M1 0.2% $146.97$485,000 100- $102.38 9.7%





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