Regardless of High Vacancies, Construction Progresses

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-marketTexas 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

MULTIPLE TRANSACTIONS

The Upper Tollway Sub-Market has consistently been one of the two main hubs of office real estate activity inDallas. With relocations of large corporate campuses, such as Toyota, FedEx, and JP Morgan Chase, the area isbecoming even more appealing as the influx of developers continue to attempt to capitalize on the enticingmarket. This recent construction has resulted in a surprisingly large vacancy rate for a market with such an “awefactor.”

Although the West Plano/Frisco region has seen a slight decrease in vacancy from 12 months ago, vacancies arestill near record highs. Just a little over three years ago, we saw these same vacancy rates at roughly half of whatthey are today. Over the course of the last twelve months, full-service rental rates have slightly increased, whichcan be attributed to some of the areas largest leases be struck at some of the most expensive buildings withinthe sub-market. Net absorption for the past 12 months has remained strong but at 743,901 SF, it is stillnoticeably behind recent and upcoming deliveries totaling over 2 million SF. These figures, along with theadditional sublet space arriving to market, will be key statistics to track in the upcoming year as deliveriescontinue to outweigh net absorption for the 4th straight year and vacancy rates remain at alarming highs.

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.

TOTAL NET ABSORPTION(Previous 12 mos.)

TOTALDELIVERED(Previous 12 mos.)

2017 743,901 SF 2017 773,265 SF

2016 747,731 SF 2016 1,562,214 SF

DIRECT FULL SERVICE RENTAL RATE (Q2)

VACANCY(Q2)

2017 $32.19 PSF 2017 18.9%

2016 $31.64 PSF 2016 19.2%

TOTAL UNDER CONSTRUCTION (Q2)

2016 1,132,600 SF 2017 1,258,192 SF

Upper Tollway Boundary

Tyler Thomas - Advisortthomas@citadelpartnersus.com

214-420-3163

2nd QUARTER

INSIGHTUpper Tollway

OFFICE LEASEADAPTIVE REUSE

TECHNOLOGY LEASEDISPOSITION

Half Of The Projects Are In Upper Tollway/LegacyTotal Office Sub-Market Q2 Statistics

As Q2 of 2017 concludes, the Upper Tollway Sub-Marketcontinues to show counterintuitive signs throughout. It is ourbelief that the rental rate spikes continue to mostly be aproduct of record high construction costs within these newdevelopments, more so than true tenant demand. WestPlano/Frisco continues to have a strong tenant interest in the1,000-10,000 SF range, but seems to be lacking the largegroups needed to backfill the nine buildings currently underconstruction.

Owner/user properties continue to be highly sought after bylarge corporations putting more and more stress on thesenew speculative developments throughout the region. Thelarge relocations will continue to bring ancillarybusinesses/jobs to the area but with an abundance of newdevelopments, it may not be enough to backfill the largeamount of space currently on the market or arriving to themarket in the next 12-24 months. As mentioned in ourprevious report, we believe more and more opportunities fortenants will continue to arise over the next couple years asthe number of large blocks of space continue to rise in thissub-market.

LEASE RATES – FULL SERVICE(ALL CLASSES)

ABSORPTION / DELIVERIES / VACANCY(ALL CLASSES)

2017 Y-T-D SUB-MARKET HIGHLIGHTS

Office Sub-Market Momentum & Forecast

Upper Tollway News

Top Leases (Through Q2 2017) Tenant Square FeetOne Legacy West NTT Data 152,058Granite Park 5 Altice 106,588Legacy Center Wipro Technologies 36,0005700 Democracy Toyota 32,704Lincoln R&D in Legacy VII Macquarie Infrastructure Corp 31,243

Deliveries (Through Q2 2017) Delivery Date Square FeetLegacy West – Urban Village 2017 Q1 377,441One Legacy West 2017 Q1 307,8248058 Dominion – Capital One 2017 Q1 205,000

Multi-Tenant Construction Delivery Date Square Feet5345 Towne Square Place 2017 Q3 80,000Frisco Station 2017 Q3 228,857Stonebrook Park – Building One 2017 Q4 120,0003201 Dallas Pky – Hall Park 2017 Q4 300,000Wade Park – Phase 1 2018 Q2 224,000

THE STAR

WADE PARK

LEGACY WEST

As of the end of first quarter, there was 10.9 million square feet of office space under construction with 54% of that space pre-leased. class-A projects accounted for 10.2 million square feet with half of the construction concentrated in the Upper Tollway/Legacy submarket (5.4 million square feet). Notable deliveries in thus far in 2017 include Legacy West with 377,400 square feet, CoreLogic headquarters with 327,100 square feet, One Legacy West with 307,800 square feet and Hillwood’s headquarters with 200,000 square feet.

Within Legacy, BroadSoft has leased 35,736 square feet of new office space at Platinum Park. BroadSoft will occupy an entire floor in building one of the 166,324-square-foot class-A master-planned office development, located at 6000 Tennyson Pkwy. The 14-acre development is located on the southwest corner of Tennyson Parkway and the Dallas North Tollway.

It consists of dual five-story buildings totaling 332,000 square feet and 12,000 square feet of restaurant and retail.

Adjacent to the site is a 136-room hotel. Platinum Park has ingress/egress, signage opportunities and amenities including a park environment, private courtyard and high-density parking ratio of 4.6:1000 including 2:1000 structured. Platinum Park does not have any exterior columns resulting in view corridors, highly efficient floorplates of 30,000 square feet, a two-story grand lobby, and multiple fiber providers including AT&T and Verizon, GlobeSt.com learns.

BroadSoft, a technology innovator in cloud communication, collaboration and contact center solutions for businesses and service providers, is relocating from Richardson, TX.

GlobeSt.com 6.29.17

citadelpartnersus.com

Market

Existing Inventory Vacancy YTD NetAbsorption

YTD Deliveries

UnderConst SF

QuotedRates

# 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

$19.00$21.00$23.00$25.00$27.00$29.00$31.00$33.00

2007 2008 2010 2012 2014 2016 Q22017

Direct Rental Rate

5.00%

7.00%

9.00%

11.00%

13.00%

15.00%

17.00%

19.00%

21.00%

23.00%

-300,000

100,000

500,000

2008 2010 2012 2014 2016 2017

Total Net Absorption (sf) RBA Delivered (sf)

Direct Vacant %

Half Of The Projects Are In Upper Tollway/LegacyTotal Office Sub-Market Q2 Statistics

As Q2 of 2017 concludes, the Upper Tollway Sub-Marketcontinues to show counterintuitive signs throughout. It is ourbelief that the rental rate spikes continue to mostly be aproduct of record high construction costs within these newdevelopments, more so than true tenant demand. WestPlano/Frisco continues to have a strong tenant interest in the1,000-10,000 SF range, but seems to be lacking the largegroups needed to backfill the nine buildings currently underconstruction.

Owner/user properties continue to be highly sought after bylarge corporations putting more and more stress on thesenew speculative developments throughout the region. Thelarge relocations will continue to bring ancillarybusinesses/jobs to the area but with an abundance of newdevelopments, it may not be enough to backfill the largeamount of space currently on the market or arriving to themarket in the next 12-24 months. As mentioned in ourprevious report, we believe more and more opportunities fortenants will continue to arise over the next couple years asthe number of large blocks of space continue to rise in thissub-market.

LEASE RATES – FULL SERVICE(ALL CLASSES)

ABSORPTION / DELIVERIES / VACANCY(ALL CLASSES)

2017 Y-T-D SUB-MARKET HIGHLIGHTS

Office Sub-Market Momentum & Forecast

Upper Tollway News

Top Leases (Through Q2 2017) Tenant Square FeetOne Legacy West NTT Data 152,058Granite Park 5 Altice 106,588Legacy Center Wipro Technologies 36,0005700 Democracy Toyota 32,704Lincoln R&D in Legacy VII Macquarie Infrastructure Corp 31,243

Deliveries (Through Q2 2017) Delivery Date Square FeetLegacy West – Urban Village 2017 Q1 377,441One Legacy West 2017 Q1 307,8248058 Dominion – Capital One 2017 Q1 205,000

Multi-Tenant Construction Delivery Date Square Feet5345 Towne Square Place 2017 Q3 80,000Frisco Station 2017 Q3 228,857Stonebrook Park – Building One 2017 Q4 120,0003201 Dallas Pky – Hall Park 2017 Q4 300,000Wade Park – Phase 1 2018 Q2 224,000

THE STAR

WADE PARK

LEGACY WEST

As of the end of first quarter, there was 10.9 million square feet of office space under construction with 54% of that space pre-leased. class-A projects accounted for 10.2 million square feet with half of the construction concentrated in the Upper Tollway/Legacy submarket (5.4 million square feet). Notable deliveries in thus far in 2017 include Legacy West with 377,400 square feet, CoreLogic headquarters with 327,100 square feet, One Legacy West with 307,800 square feet and Hillwood’s headquarters with 200,000 square feet.

Within Legacy, BroadSoft has leased 35,736 square feet of new office space at Platinum Park. BroadSoft will occupy an entire floor in building one of the 166,324-square-foot class-A master-planned office development, located at 6000 Tennyson Pkwy. The 14-acre development is located on the southwest corner of Tennyson Parkway and the Dallas North Tollway.

It consists of dual five-story buildings totaling 332,000 square feet and 12,000 square feet of restaurant and retail.

Adjacent to the site is a 136-room hotel. Platinum Park has ingress/egress, signage opportunities and amenities including a park environment, private courtyard and high-density parking ratio of 4.6:1000 including 2:1000 structured. Platinum Park does not have any exterior columns resulting in view corridors, highly efficient floorplates of 30,000 square feet, a two-story grand lobby, and multiple fiber providers including AT&T and Verizon, GlobeSt.com learns.

BroadSoft, a technology innovator in cloud communication, collaboration and contact center solutions for businesses and service providers, is relocating from Richardson, TX.

GlobeSt.com 6.29.17

citadelpartnersus.com

Market

Existing Inventory Vacancy YTD NetAbsorption

YTD Deliveries

UnderConst SF

QuotedRates

# 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

$19.00$21.00$23.00$25.00$27.00$29.00$31.00$33.00

2007 2008 2010 2012 2014 2016 Q22017

Direct Rental Rate

5.00%

7.00%

9.00%

11.00%

13.00%

15.00%

17.00%

19.00%

21.00%

23.00%

-300,000

100,000

500,000

2008 2010 2012 2014 2016 2017

Total Net Absorption (sf) RBA Delivered (sf)

Direct Vacant %

Regardless of High Vacancies, Construction Progresses

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-marketTexas 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

MULTIPLE TRANSACTIONS

The Upper Tollway Sub-Market has consistently been one of the two main hubs of office real estate activity inDallas. With relocations of large corporate campuses, such as Toyota, FedEx, and JP Morgan Chase, the area isbecoming even more appealing as the influx of developers continue to attempt to capitalize on the enticingmarket. This recent construction has resulted in a surprisingly large vacancy rate for a market with such an “awefactor.”

Although the West Plano/Frisco region has seen a slight decrease in vacancy from 12 months ago, vacancies arestill near record highs. Just a little over three years ago, we saw these same vacancy rates at roughly half of whatthey are today. Over the course of the last twelve months, full-service rental rates have slightly increased, whichcan be attributed to some of the areas largest leases be struck at some of the most expensive buildings withinthe sub-market. Net absorption for the past 12 months has remained strong but at 743,901 SF, it is stillnoticeably behind recent and upcoming deliveries totaling over 2 million SF. These figures, along with theadditional sublet space arriving to market, will be key statistics to track in the upcoming year as deliveriescontinue to outweigh net absorption for the 4th straight year and vacancy rates remain at alarming highs.

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.

TOTAL NET ABSORPTION(Previous 12 mos.)

TOTALDELIVERED(Previous 12 mos.)

2017 743,901 SF 2017 773,265 SF

2016 747,731 SF 2016 1,562,214 SF

DIRECT FULL SERVICE RENTAL RATE (Q2)

VACANCY(Q2)

2017 $32.19 PSF 2017 18.9%

2016 $31.64 PSF 2016 19.2%

TOTAL UNDER CONSTRUCTION (Q2)

2016 1,132,600 SF 2017 1,258,192 SF

Upper Tollway Boundary

Tyler Thomas - Advisortthomas@citadelpartnersus.com

214-420-3163

2nd QUARTER

INSIGHTUpper Tollway

OFFICE LEASEADAPTIVE REUSE

TECHNOLOGY LEASEDISPOSITION