Presented by: Patrick Duffy MCR President | Houston Chairman Colliers Retail Specialty Group Direct +1 713 830 2112 | Mobile +1 727 460 3215 Main +1 713 222 2111 |

1. TRENDS 2012
COMMERCIAL REAL ESTATE MARKET UPDATE
January 31, 2012

2. Houston’s Brag Book
2011-2012 Headlines
“Houston driving Texas' growth, economist says”
“Houston ranks as North America’s fastest-growing metro area”
“Strong year for jobs in Houston”
“Houston MSA personal income increased 5.5% in 2011”
“Houston remains popular with foreign real estate investors”
“Houston tops U.S. retail job growth”
“High-end retail thriving in Houston”
“Houston gains most retail trade jobs in U.S. since 2007 “

3. HOUSTON OFFICE
HOUSTON OFFICE MARKET INDICATORS
YE 2010 YE 2011
CITYWIDE NET ABSORPTION (SF) 476K 2.6M 79% of leases
CITYWIDE AVERAGE VACANCY 16.0% 15.5% we tracked in
CITYWIDE AVERAGE RENTAL RATE $23.08 $23.20
2011 were
CLASS A RENTAL RATE
CBD $35.00 $40.00
energy industry
SUBURBAN $27.00 $31.00
CLASS A VACANCY tenants
CBD 10.4% 14.3%
SUBURBAN 17.5% 14.4%

4. HOUSTON OFFICE
ABSORPTION, NEW SUPPLY & VACANCY RATES
3,000,000
17.0%
2,500,000
2,000,000 15.0%
1,500,000 13.0%
1,000,000
11.0%
500,000
9.0%
0
-500,000 7.0%
-1,000,000 5.0%
Net Absorption New Supply Vacancy

5. HOUSTON OFFICE
Sales by Total $ (mil)
Rolling 12-mo. Total Quarterly Vol.
4,500
4,000
3,500
3,000
2,500
2,000
1,500
Data Source:
1,000
500
0
Q1 '08 Q1 '09 Q1 '10 Q1 '11
Average Price ($) Per SF Average Cap Rate (Yield)
Houston United States Houston United States
300
11%
250
200 9%
150
7%
100
5%
50
0 3%
Q1 '08 Q1 '09 Q1 '10 Q1 '11 Q1 '08 Q1 '09 Q1 '10 Q1 '11

6. HOUSTON INDUSTRIAL
HOUSTON INDUSTRIAL MARKET INDICATORS
YE 2010 YE 2011
CITYWIDE NET ABSORPTION (SF) 4.8M 4.4M Build-to-suit
and spec
CITYWIDE AVERAGE VACANCY (%) 6.2% 5.2%
construction on
the uptick as
CITYWIDE AVERAGE RENTAL RATE ($) $5.33 $5.45
vacancy
NEW SUPPLY DELIVERED (SF) 2.3M 1.7M decreases to
5.2%
4Q UNDER CONSTRUCTION (SF) 200K 2.9M

7. HOUSTON INDUSTRIAL
ABSORPTION, NEW SUPPLY & VACANCY RATES
6,000,000 8%
5,000,000 7%
6%
4,000,000
5%
3,000,000
4%
2,000,000
3%
1,000,000
2%
0 1%
-1,000,000 0%
Absorption New Supply Vacancy

8. HOUSTON INDUSTRIAL
Sales by Total $ (mil)
Rolling 12-mo. Total Quarterly Vol.
900
800
700
600
500
400
300
Data Source:
200
100
0
Q1 '08 Q1 '09 Q1 '10 Q1 '11
Average Price ($) Per SF Average Cap Rate (Yield)
Houston United States Houston United States
80
11%
60
9%
40
7%
20 5%
0 3%
Q1 '08 Q1 '09 Q1 '10 Q1 '11 Q1 '08 Q1 '09 Q1 '10 Q1 '11

9. HOUSTON RETAIL
HOUSTON RETAIL MARKET INDICATORS
YE 2010 YE 2011
Restaurant
CITYWIDE NET ABSORPTION (SF) 2.8M 1.8M
owners expanding
CITYWIDE AVERAGE VACANCY (%) 8.0% 7.2%
Houston footprint
CITYWIDE AVERAGE RENTAL RATE ($) $14.85 $15.13
NEW SUPPLY DELIVERED (SF) 393K 687K
4Q UNDER CONSTRUCTION (SF) 231K 617K

10. HOUSTON RETAIL
ABSORPTION, NEW SUPPLY & VACANCY RATES
6,000,000 12%
5,000,000
10%
4,000,000
8%
3,000,000
2,000,000 6%
1,000,000
4%
0
2%
-1,000,000
-2,000,000 0%
Absorption New Supply Vacancy

11. HOUSTON RETAIL
Sales by Total $ (mil)
Rolling 12-mo. Total Quarterly Vol.
2,500
2,000
1,500
1,000
Data Source:
500
0
Q1 '08 Q1 '09 Q1 '10 Q1 '11
Average Price ($) Per SF Average Cap Rate (Yield)
Houston United States Houston United States
250
11%
200
9%
150
7%
100
50 5%
0 3%
Q1 '08 Q1 '09 Q1 '10 Q1 '11 Q1 '08 Q1 '09 Q1 '10 Q1 '11

12. HOUSTON MULTI-FAMILY
HOUSTON MULTI-FAMILY MARKET INDICATORS
YE 2010 YE 2011 Class A
UNITS ABSORBED 15,722 14,036 apartments
had lower
CITYWIDE AVERAGE VACANCY (%) 14.1% 12.5%
than average
CITYWIDE AVERAGE RENTAL RATE ($)
vacancy of
$723 $749
6.6% in
UNITS DELIVERED 3,852 4,963 December
2011
4Q UNDER CONSTRUCTION 2,367 2,831

13. HOUSTON MULTI-FAMILY
ABSORPTION, NEW SUPPLY & VACANCY RATES
25,000 18%
16%
20,000
14%
15,000
12%
10,000 10%
5,000 8%
6%
0
4%
-5,000
2%
-10,000 0%
Units Absorbed Units Delivered Vacancy

14. HOUSTON MULTI-FAMILY
Sales by Total $ (mil)
Rolling 12-mo. Total Quarterly Vol.
3,500
3,000
2,500
2,000
1,500
1,000
Data Source:
500
0
Q1 '08 Q1 '09 Q1 '10 Q1 '11
Average Price ($) Per SF Average Cap Rate (Yield)
Houston United States Houston United States
120,000
100,000 11%
80,000 9%
60,000
7%
40,000
20,000 5%
0 3%
Q1 '08 Q1 '09 Q1 '10 Q1 '11 Q1 '08 Q1 '09 Q1 '10 Q1 '11

15. HOUSTON HOTEL
HOUSTON HOTEL MARKET INDICATORS
YE 2010 YE 2011
TOTAL UNITS 72,111 74,450
CITYWIDE AVERAGE VACANCY (%) 44.7% 42.0%
CITYWIDE AVERAGE DAILY RATE ($) $88.66 $92.50
UNITS DELIVERED 4,244 2,339

16. HOUSTON HOTEL
SUPPLY & VACANCY RATES
80,000 50%
45%
70,000
40%
60,000
35%
50,000
30%
40,000 25%
20%
30,000
15%
20,000
10%
10,000
5%
0 0%
Supply Vacancy

17. HOUSTON HOTEL
Sales by Total $ (mil)
Rolling 12-mo. Total Quarterly Vol.
1,400
1,200
1,000
800
600
400 Data Source:
200
0
Q1 '08 Q1 '09 Q1 '10 Q1 '11
Average Price ($) Per SF Average Cap Rate (Yield)
Houston United States Houston United States
250,000
11%
200,000
9%
150,000
100,000 7%
50,000 5%
0 3%
Q1 '08 Q1 '09 Q1 '10 Q1 '11 Q1 '08 Q1 '09 Q1 '10 Q1 '11

18. 2012 CONSTRUCTION COMMENTS
 General contractors and subcontractors actively pursuing new hires
 It is not uncommon to have at least one of the bidders decline (workload)
 Construction costs have not shown significant increases, but….
 We are seeing subcontractor quotes holding their prices for as little as one week
due to material volatility.
 Confirming that the market is still unpredictable, manufacturers are not stocking
a number of standard construction items.
 We are still experiencing long delivery times on light fixtures and doors.
 In working with contractors that have a national presence, we continually hear
“Thank God we’re in Houston!”

19. 2012 TRENDS
 CONTINUED JOB GROWTH ESPECIALLY IN ENERGY
 OCCUPANCY, ABSORPTION, AND RATES WILL INCREASE
 CONSTRUCTION UPTICK IN ALL REAL ESTATE SECTORS
 INCREASED DEMAND FOR LAND
 VALUES WILL INCREASE NEAR TERM
 OCCUPANCY COSTS WILL INCREASE NEAR & MID TERM