Austin Chamber of Commerce 1207 State of the Economy Real Estate Market As presented to the Keller Williams Agent Leadership Council.

Austin Chamber of Commerce

12•07 State of the Economy

• Real Estate Market •

As presented to the

Keller Williams Agent Leadership Council

Real Estate MarketOffice

Rent per sq. ft. per yearVacancy

rateLow High

Class ADowntown $23.02 $40.00 16.0%

Suburban 15.00 34.00 10.0

Class BDowntown 13.00 27.25 31.0

Suburban 7.00 28.55 15.0

Source: NIA Direct, 2007 Global Market Report.

Real Estate Market: Office2nd Quarter 2007

Total

sq. ft.

VacantNet

absorp-tion, YTD

Under construc-

tion

sq. ft.

Asking rent

Sq. ft. % Class A Class B

Total 39,268,469 4,516,667 11.5% 588,055 2,451,734 $29.12 $21.78

Downtown 8,420,366 1,095,387 13.0 70,973 68,000 31.51 27.26

Suburban 30,848,103 3,421,280 11.1 517,082 2,383,734 27.51 20.65

Source: Grubb & Ellis.

Real Estate Market: Industrial2nd Quarter 2007

Total

sq. ft.

Vacant

sq. ft.

Vacancy

rate

Net absorption,

YTD

Under construc-

tion

sq. ft.

Asking rent

Total 68,400,987 5,019,815 7.3% 2,606,413 1,433,009 $7.75

General Industrial

25,111,691 922,595 3.7 1,923,261 1,009,209 6.38

R&D/Flex 17,919,716 2,635,385 14.7 447,116 86,000 9.13

Warehouse/ Distribution

25,369,580 1,461,835 5.8 236,036 337,800 6.97

Source: Grubb & Ellis.

Favorable Real Estate Market

Opportunities abound for growing companies with long-term expansion plans. Thanks to an abundance of office and industrial space and a wide variety of environmental characteristics, the region can accommodate nearly any operation, large or small.

As of 2nd quarter 2007, Austin has over 7.4 million sq. ft. of vacant office space and an 12% vacancy rate. Space available in the industrial market totals over 7.4 million sq. ft. and the industrial vacancy rate is also 10%.

Ample office space is available in a vibrant downtown as well as a variety of suburban markets. In addition, the area has several campus-style facilities and incubator space available for lease.

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Multi-FamilySingle-Family

Residential PermitsAustin MSA

Source: U.S. Bureau of the Census.

Nearly 21,600 permits were issued in the last 12 months (14,690 single family & 6,909 multifamily).

Growth Rates: Housing Units Authorized by Building Permits

12.3%

-31.9%

-14.7%

-44.3%

-28.4%-26.0%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

2005-2006 '06-'07 YTD J un 06-J un 07

Austin MSA United States

Source: U.S. Bureau of the Census.

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$50

$100

$150

$200

$250

$300

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$450

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Mill

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Valuation of New Housing Units Authorized by Building Permits

Austin MSA

Source: U.S. Bureau of the Census.

Monthly average: 2005 $234M2006 $262M 2007 $234M (YTD)

Growth Rates: Valuation of Housing Units Authorized by Building Permits12.1%

-22.9%

-11.5%

-54.0%

-25.1% -26.4%

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

2005-2006 '06-'07 YTD J un 06-J un 07

Austin MSA United States

Source: U.S. Bureau of the Census.

Residential PermitsAustin MSA

0

4,000

8,000

12,000

16,000

20,000

24,000

Housi

ng U

nit

s

Source: U.S. Bureau of the Census.

Housing permits increased 31% in Austin in 2005 over 2004, compared to 5% nationally.

Home SalesAustin MSA

0

500

1,000

1,500

2,000

2,500

3,000

3,500

In Austin, home sales were up 12.3% in 2006 over 2005. Sales were down 8.4% nationally.

YTD, Austin sales are 1.5% below last year & national sales are down 9.3%.

Source: Real Estate Center at Texas A&M University.

Residential Permits by County2006 Austin MSA

Caldwell0.3%

Bastrop1.2%

Williamson28.6%

Travis60.3%

Hays9.6%

Source: U.S. Bureau of the Census.

Bastrop 302

Caldwell 84

Hays 2,518

Travis 15,738

Williamson 7,454

Austin MSA 26,096