1. State of the Economy How is Doing? Dan Bellow President - Houston September 24, 2009Houston’s Tomorrow Houston

2. The Power of the 10-County Houston Metro Area GAP projected to grow 35% by 2013 to $592 B Population projected to increase nearly 11% by 2013 Source: Greater Houston Partnership, The Perryman Group 2009 Estimate$450 B5.88M Projected % Increase 2009-201332.0%8.5% 2013 Projection$592 B6.38 M GAP Population

3. Houston: A Growing City Population Growth Percent change, July, 2007 – July, 2008 Top U.S. Cities Houston Los Angeles Chicago New York City Source: U.S. Census Bureau

4. Houston’s Unemployment: Well Below National Rate

5. Houston: Stable in a Down Economy Houston New York City Chicago Los Angeles U.S. Employment Growth Rate (Percent Change in MSA Nonfarm Payroll Employment) 4 Most Populous U.S. Metro Areas July ’08 – July ‘09 Source: Greater Houston Partnership

6. Houston: An Affordable Place to Live Cost of Living (Percent below/above nationwide average as of 2Q’09) Index: average of 320 urban areas = 100% Source: ACCRA Cost of Living Index Houston Dallas New York City Chicago

7. Port of Houston #1 - imports (84.5 M in ’08) #2 - exports (51.8 M in ’08) #16 - int’l tonnage (2007) NASA / JSC Global nerve center 17,000 total employees 3,400 federal workers Texas Medical Ctr World’s largest 73,600 employees $7.1 B in future growth Interstate Highway Highway Airports (Area) MAP KEY: 9 th largest in U.S. by RBA 140,000 people inflow daily Office market 86% occupied The Galleria #1 in Texas; #4 in U.S. 24 million annual visitors Office market 87% occupied Energy Industry Heartbeat of industry 4 th largest submarket Office market 91% occupied 2 1 1 2 3 3 4 4 5 5 6 6 The Power Centers of Houston CBD

8. Houston: A Stable Real Estate Market ½ Billion SF Market Occupancy = 94% Port of Houston 2008 IND Employment 300 Million SF Market Occupancy = 91% Galleria Mall Retail sales up 11.7% 1.7 Million households Occupancy = 86% (multi-family) Foreclosures stable 25% off housing costs 150 Million SF Market (Multi-Tenant) Occupancy = 84% Energy (48% econ. Base) 29 Fortune 500 HQ’s (#3)

9. Houston’s Home Prices Outperforming Major Metros As of July, 2009

10. Houston Headlines “Best City to Get Ahead” Forbes.com - June 19, 2009 “Top Metro in the Nation (For Corporate Expansions & Relocations)” Site Selection Magazine - March 2009 “Best City to Live, Work and Play” Kiplinger's Personal Finance - July 2008 “Top U.S. Manufacturing Cities” Manufacturers' News Inc. (as reported in the Houston Business Journal) - May 19, 2009 “Best Cities for Jobs” Forbes.com - April 14, 2009 and Fortune Magazine - April 2009 “Fastest Growing Cities” US Census Bureau - July 2009 Houston is listed as one of the Top 10 "World Capital of the Future” Forbes Magazine - September 2009