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

2. Real Estate Market Office Rent per sq. ft. per year Vacancy rate LowHigh Class A Downtow n $23.02$40.0016.0% Suburban15.0034.0010.0 Class B Downtow n 13.0027.2531.0 Suburban7.0028.5515.0 Source: NIA Direct, 2007 Global Market Report.

3. Real Estate Market: Office 2 nd Quarter 2007 Total sq. ft. Vacant Net absorp- tion, YTD Under construc- tion sq. ft. Asking rent Sq. ft.%Class AClass B Total39,268,4694,516,66711.5%588,0552,451,734$29.12$21.78 Downtown8,420,3661,095,38713.070,97368,00031.5127.26 Suburban30,848,1033,421,28011.1517,0822,383,73427.5120.65 Source: Grubb & Ellis.

4. Real Estate Market: Industrial 2 nd Quarter 2007 Total sq. ft. Vacant sq. ft. Vacancy rate Net absorption, YTD Under construc- tion sq. ft. Asking rent Total68,400,9875,019,8157.3%2,606,4131,433,009$7.75 General Industrial 25,111,691922,5953.71,923,2611,009,2096.38 R&D/Flex17,919,7162,635,38514.7447,11686,0009.13 Warehouse/ Distribution 25,369,5801,461,8355.8236,036337,8006.97 Source: Grubb & Ellis.

5. 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 2 nd 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.

6. Residential Permits Austin 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).

7. Growth Rates: Housing Units Authorized by Building Permits Source: U.S. Bureau of the Census.

8. Valuation of New Housing Units Authorized by Building Permits Austin MSA Source: U.S. Bureau of the Census. Monthly average: 2005 $234M 2006 $262M 2007 $234M (YTD)

9. Growth Rates: Valuation of Housing Units Authorized by Building Permits Source: U.S. Bureau of the Census.

10. Residential Permits Austin MSA Source: U.S. Bureau of the Census. Housing permits increased 31% in Austin in 2005 over 2004, compared to 5% nationally.

11. Home Sales Austin MSA 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.

12. Residential Permits by County 2006 Austin MSA Source: U.S. Bureau of the Census. Bastrop302 Caldwell84 Hays2,518 Travis15,738 Williamson7,454 Austin MSA26,096