O’CONNOR OFFICE FORECAST LUNCHEON January 25, 2012

1. O’CONNOR OFFICE FORECAST LUNCHEON January 25, 2012 ATLANTA  AUSTIN  HOUSTON  DALLAS  ORANGE COUNTY  SAN ANTONIO

2. ATLANTA LOOKING BACK AT 2011 TOP CLIENTS Occupancy by Submarket

3. ATLANTA LOOKING BACK AT 2011 Office Trends • Flight to quality/efficiency • Consolidations/Relocations – Exxon, Noble, BG Group, Schlumberger, BBVA, Nexxen • Significant Growth – BP, GE Oil & Gas, Cameron, Worley Parsons, Weatherford, Talisman, FMC Technologies • Long-term commitments from global companies – Shell, Hess, DOW Chemical, BBVA, BP • Increasing depth of demand through natural growth and new tenants to the market • Record sales prices in the CBD and Energy Corridor – Hess Tower, 1254 Enclave, DNA II

4. ATLANTA LOOKING BACK AT 2011 Large Leases Executed *Renewals or Expansions

5. ATLANTA LOOKING BACK AT 2011 Notable Office Sales - 2011 Hess Tower 1254 Enclave Class A Built in 2011 844,763 SF 100% Leased Buyer – H&R Reit Seller – Principal/Trammell Crow Closed December 2011 Class A, LEED Built in 2008 381,327 SF 100% Leased Buyer – Azrieli Group Seller – CORE/Baynorth Closed Jan 2012 Westway II CityCentre One Class A , LEED Built in 2009 242,000 SF 100% Leased Buyer – Wells REIT Seller – DNA Closed Sept 2011 Class A Built in 2008 119,195 SF 100% Leased Buyer – Stockbridge Seller – L&B / Midway Cos Closed Jan 2012

6. ATLANTA LOOKING BACK AT 2011 Houston Economy • Houston ranked as North America’s fastest growing metropolitan areas (19th in the world) by the Brookings Institute when comparing gross domestic product, employment, income and population rate. • Houston added 75,800 jobs in 2011 and the 10-county Houston-Sugar Land-Baytown Metropolitan Statistical Area surpassed its pre-recession employment peak in the fall, according to estimates released by the Texas Workforce Commission (TWC). Nonfarm payroll employment is now at the highest point in Houston’s history. • A record 17.7 million tons of container cargo moved through the Port of Houston in 2011, officials said we had our highest volume ever recorded. • Houston led the nation with a 149 percent increase in technology job growth in 2011, according to CyberCoders, an Irvine, Calif.-based tech recruiter

7. ATLANTA LOOKING BACK AT 2011

8. ATLANTA LOOKING BACK AT 2011 Population Growth • Houston gaining more residents over the past decade than any of the nation's other 365 cities, according to a new study by Kinder Institute for Urban Research at Rice University. • Between 2000 and 2010, the Greater Houston metropolitan area grew by a whopping 1.2 million people, increasing by more than 123,000 individuals per year over the decade  • Houston's growth represents more people than the population growth in the New York and Chicago metropolitan areas combined during the past decade

9. ATLANTA HISTORICAL ANALYSIS TOP CLIENTS Occupancy & Absorption vs. Employment Growth Rentable SF Absorbed Occupancy % Total Occupancy % Source: CoStar

10. ATLANTA HISTORICAL ANALYSIS TOP CLIENTS Average Annual Rates, Class A & B Source: CoStar

11. ATLANTA HISTORICAL ANALYSIS TOP CLIENTS Net Absorption, by Submarket Source: CoStar

12. ATLANTA HISTORICAL ANALYSIS TOP CLIENTS Net Absorption, Old vs. New Product Source: CoStar

13. ATLANTA OFFICE FORECAST FOR 2012 • Absorption through expansion - Tenants are in less space than they expect to be over the next 36 months • Concessions expected to leave the market • Rental Rate Increases • Pre-leased Developments • Large Tenants Currently in the Market – Phillips 66, Repsol, Transcanada, PWC, Bechtel, BHP, Samsung Engineering • The Greater Houston Partnership has forecasted 84,600 new jobs in 2012