Statistical data for the Houston Office market.

1. NAI Houston
Office Report | Second Quarter 2010: Recap
1900 West Loop South, Suite 500
Houston, TX 77027
tel 713 629 0500
www.naihouston.com

2. Houston:
Office Space Data
CITYWIDE HIGHPOINTS: (Updated from 1st Quarter 2010)
A. Net absorption for Houston office space citywide: -311,935 SF in Q2 2010, +505,004 SF in Q1 2010, +105,274 SF in
Q4 2009 and +84,514 SF in Q3 2009.
B. Vacancy Rate to end 2Q 2010 was 14.2% (up from 1st Quarter 2010).
C. Available sublease space to end 2Q 2010 was 4,576,879 SF (up 265,580 from 1st Quarter 2010).
D. Rental Rate average ended 2Q 2010 at $23.07 per square foot (a slight decrease from previous quarter).
E. 5 new office buildings totaling 78,828 square feet delivered to market to end 2Q 2010.
F. Going into 3Q 2010, there was slightly more than 2.33 million square feet of new office buildings under construction.
G. Sales of Office Buildings was up compared to 2009. There were 6 office sales transactions during 1Q 2010 with a total
volume of $112,350. The average price per square foot was $147.43.
TRENDS: Vacancy Rate Net Absorption Construction Asking Rents
U.S. VACANCY COMPARISON
Source: CoStar Property®
1900 West Loop South, Suite 500
Houston, TX 77027
tel 713 629 0500
www.naihouston.com

3. Houston:
Office Space Data
Total Employment Growth
Highlight Total Number of Jobs Added Per Year
Recent Deliveries (Houston, TX)
Leased & Un-Leased SF in Deliveries Since 2006
Source: CoStar Property®
1900 West Loop South, Suite 500
Houston, TX 77027
tel 713 629 0500
www.naihouston.com

4. NAI Houston
Office Report | Second Quarter 2010
Submarket Reports
Source: CoStar Property®

5. NAI Houston
Office Report | Second Quarter 2010
Submarket Reports
Source: CoStar Property®

6. NAI Houston
Methodology / Definitions / Submarket Map
Absorption (Net)
The change in occupied space in a given time
period.
Available Square Footage
Net rentable area considered available for lease;
excludes sublease space.
Average Asking Rental Rate
Rental rate as quoted from each building’s owner/
management company. For office space, a full
service rate was requested; for retail, a triple net
rate requested; for industrial, a NN basis.
Building Class
Class A Product is office space of steel and con-
crete construction, built after 1980, quality ten-
ants, excellent amenities & premium rates. Class
B product is office space built after 1980, fair to
good finishes & wide range of tenants.
Direct Vacancy
Space currently available for lease directly with
the landlord or building owner.
Market Size
Includes all existing and under construction office
buildings (office, office condo, office loft, office
medical, all classes and all sizes, both multi-
tenant and single-tenant, including owner-
occupied buildings) within each market.
Overall Vacancy
All physically unoccupied lease space, either di-
rect or sublease.
SF/PSF
Square foot/per square foot, used as a unit of
measurement. Downtown
5.3 million SF vacant
Sublease 11.6% vacancy rate
Arrangement in which a tenant leases rental prop- $29.79 SF/YR avg. rental
erty to another, and the tenant becomes the land-
lord to the subtenant. West Loop
2.0 million SF vacant
Sublease Space 13.4% vacancy rate
Total square footage being marketed for lease by $27.20 SF/YR avg. rental
the tenant.
Greenway Plaza
Sublease Vacancy 1.7 million SF vacant
Space currently available in the market for sub- 14.0% vacancy rate
lease with an existing tenant within a building act- $25.10 SF/YR avg. rental
ing as the landlord.
The information contained herein has been given to us by sources we deem reliable. We have no reason
Source: CoStar Property to doubt its accuracy, however, we do not make any guarantees. All information should be verified before
relying thereon.