Real Estate Market Overview: Dallas-Forth Worth

Real Estate Market Overview 2007 Dallas-Fort Worth-Arlington Dallas was settled in 1841 as a frontier trading post and today is the eighth largest city in the United States. The Dallas MSA is also the second largest in Texas, with more than three million people living in the area. High-tech companies, manufacturing and service industries have contributed to growth in Dallas, considered the financial hub of the Southwest. The Dallas-Fort Worth International Airport, which encompasses more than 18,000 acres, is the nation's third busiest and a major economic engine for the region. Fort Worth, known as the city \"Where the West Begins,\" still embraces its cowboy heritage. However, with successful downtown revitalization projects like Sundance Square, Fort Worth has transformed itself over the years into a cosmopolitan and cultural center. Bass Performance Hall, one of the area's major cultural attractions, was recently named \"one of the top 10 opera houses in the world\" by Travel and Leisure magazine. Arlington, home to Six Flags Over Texas, Hurricane Harbor and The Ballpark at Arlington, is known as one of Texas' \"most entertaining\" cities. Quick Facts Dallas: 6,185.83 square miles Land Area Fort Worth-Arlington: 2,917.96 square miles Dallas: 649.8 people per square mile 2006 Population Density Fort Worth-Arlington: 680.1 people per square mile Collin, Dallas, Delta, Denton, Ellis, Counties Hunt, Kaufman, Rockwall, Johnson, Parker, Tarrant, Wise Area Cities and Towns Addison, Allen, Arlington, Balch Springs, Bedford, Benbrook, Burleson, Carrollton, Cedar Hill, Cleburne, Colleyville, Coppell, Dallas, Denton, DeSoto, Duncanville, Ennis, Euless, Farmers Branch, Flower Mound, Forest Hill, Fort Worth, Frisco, Garland, Grand Prairie, Grapevine, Greenville, Haltom City, Highland Village, Hurst, Irving, Keller, Lancaster, Lewisville, Mansfield, McKinney, Mesquite, North Richland Hills, Plano, Richardson, Rockwall, Rowlett, Saginaw, Southlake, Terrell, The Colony, Watauga, Waxahachie, White Settlement, Wylie *This report's MSA data reflects either 1999 or 2003 MSA definitions based on data availability. Use of 1999 definition is noted where applicable. Source: U.S. Census Bureau and Real Estate Center at Texas A&M University

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Metropolitan Statistical Areas (MSAs) DALLAM SHERMAN HANSFORD OCHILTREE LIPSCOMB HUTCHINSON HARTLEY MOORE ROBERTS HEMPHILL 2 CARSON POTTER WHEELER OLDHAM GRAY RANDALL ARMSTRONG DONLEY COLLINGSWORTH DEAF SMITH BRISCOE PARMER CASTRO SWISHER HALL CHILDRESS HARDEMAN WICHITA 25 BAILEY LAMB HALE FLOYD MOTLEY COTTLE WILBARGER FOARD 14 20 GRAYSON CLAY 21 LAMAR ARCHER MONTAGUE COOKE RED RIVER FANNIN COCHRAN HOCKLEY DICKENS KING KNOX BAYLOR LUBBOCK CROSBY BOWIE DELTA FRANKLIN WISE DENTON COLLIN HUNT JACK TITUS YOAKUM TERRY LYNN GARZA KENT STONEWALL HASKELL THROCKMORTON YOUNG HOPKINS 8 MORRIS CASS CAMP ROCKWALL RAINS PARKER WOOD UPSHUR MARION JONES SHACKLEFORD DALLAS TARRANT 1 GAINES DAWSON BORDEN SCURRY FISHER STEPHENS PALO PINTO KAUFMAN 22 13 GREGG SMITH HARRISON VAN ZANDT JOHNSON HOOD ELLIS CALLAHAN EASTLAND ANDREWS MARTIN HOWARD MITCHELL NOLAN TAYLOR ERATH SOMERVELL HENDERSON 17 16 PANOLA RUSK 9 NAVARRO HILL EL PASO 24 COMANCHE CHEROKEE BOSQUE STERLING COKE LOVING RUNNELS WINKLER ANDERSON ECTOR MIDLAND COLEMAN BROWN SHELBY FREESTONE 18 HAMILTON GLASSCOCK MCLENNAN CORYELL NACOGDOCHES MILLS LIMESTONE 11 SAN CULBERSON WARD HUDSPETH CRANE AUGUSTINE UPTON REAGAN HOUSTON SABINE CONCHO LEON TOM GREEN LAMPASAS IRION FALLS REEVES ANGELINA MCCULLOCH SAN SABA ROBERTSON 6 BELL TRINITY MADISON JASPER NEWTON MENARD SCHLEICHER POLK BURNET TYLER MILAM PECOS WALKER BRAZOS JEFF DAVIS CROCKETT MASON LLANO SAN WILLIAMSON JACINTO BURLESON KIMBLE 4 SUTTON HARDIN 3 GRIMES TRAVIS MONTGOMERY GILLESPIE LEE BLANCO ORANGE TERRELL WASHINGTON LIBERTY 10 BASTROP JEFFERSON KERR HAYS AUSTIN PRESIDIO WALLER EDWARDS VAL VERDE CHAMBERS REAL KENDALL FAYETTE BREWSTER CALDWELL HARRIS COMAL BANDERA FORT BEND COLORADO 19 GUADALUPE GALVESTON GONZALES KINNEY LAVACA UVALDE MEDINA BRAZORIA WHARTON BEXAR 23 WILSON DE WITT JACKSON FRIO MATAGORDA ZAVALA KARNES MAVERICK ATASCOSA VICTORIA GOLIAD CALHOUN DIMMIT BEE REFUGIO MCMULLEN LA SALLE ARANSAS LIVE OAK 7 12 SAN PATRICIO JIM WELLS NUECES 1. Abilene 14. Lubbock DUVAL WEBB KLEBERG 2. Amarillo 15. McAllen-Edinburg-Mission 3. Austin-Round Rock 16. Midland JIM HOGG ZAPATA BROOKS KENEDY 4. Beaumont-Port Arthur 17. Odessa 15 5. Brownsville-Harlingen 18. San Angelo STARR WILLACY 6. College Station-Bryan 19. San Antonio HIDALGO 5 CAMERON 7. Corpus Christi 20. Sherman-Denison 8. Dallas-Fort Worth-Arlington 21. Texarkana 9. El Paso 22. Tyler 10. Houston-Sugar Land-Baytown 23. Victoria 11. Killeen-Temple-Fort Hood 24. Waco 12. Laredo 25. Wichita Falls 13. Longview Prepared by the Labor Market and Career Information Department, TWC Edited by Real Estate Center at Texas A&M University

Table of Contents Demographics ..............................................................................................1 Education .....................................................................................................5 Employment .................................................................................................7 Economy ....................................................................................................15 Infrastructure ..............................................................................................16 Public Facilities ..........................................................................................17 Multifamily ..................................................................................................20 Housing ......................................................................................................24 Retail ..........................................................................................................37 Hotel...........................................................................................................43 Office..........................................................................................................45 Industrial ....................................................................................................58

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Dallas-Fort Worth-Arlington Market Overview 2007 Demographics Fort Worth-Arlington Dallas MD MD Population* Population* Percent Percent Change Change Year Population Year Population - 1996 3,076,605 - 1996 1,551,044 2.6 1997 3,178,447 3.2 1997 1,591,973 2.7 1998 3,283,020 3.2 1998 1,634,973 2.7 1999 3,381,283 2.9 1999 1,678,673 1.9 2000 3,451,226 2.0 2000 1,710,318 3.2 2001 3,585,379 3.7 2001 1,764,411 2.5 2002 3,664,340 2.2 2002 1,808,534 2.2 2003 3,737,262 2.0 2003 1,848,627 2.1 2004 3,812,875 2.0 2004 1,887,381 2.1 2005 3,893,123 2.1 2005 1,926,352 3.0 2006 4,019,499 3.1 2006 1,984,468 * July 1 population estimates * July 1 population estimates Source: U.S. Census Bureau Source: U.S. Census Bureau County Population Growth Growth 1996-2006 County 1996 2006 (in percent) 378,488 Collin 698,851 84.6 2,073,484 Dallas 2,345,815 13.1 5,085 Delta 5,561 9.4 354,915 Denton 584,238 64.6 97,597 Ellis 139,300 42.7 69,914 Hunt 83,338 19.2 110,751 Johnson 149,016 34.6 62,129 Kaufman 93,241 50.1 76,476 Parker 106,266 39.0 34,993 Rockwall 69,155 97.6 1,323,207 Tarrant 1,671,295 26.3 40,610 Wise 57,891 42.6 * July 1 population estimates Source: U.S. Census Bureau -1-

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Area Cities With 10,000 or More Residents Growth Growth 1990 2000 1990 2000 1990-2000 1990-2000 City City (cont'd) Population Population Population Population (percent) (percent) Addison 8,783 14,166 61.3 Grapevine 29,202 42,059 44.0 Allen 18,309 43,554 137.9 Greenville 23,071 23,960 3.9 Arlington 261,721 332,969 27.2 Haltom City 32,856 39,018 18.8 Athens 10,967 11,297 3.0 Highland Village 7,027 12,173 73.2 Balch Springs 17,406 19,375 11.3 Hurst 33,574 36,273 8.0 Bedford 43,762 47,152 7.7 Irving 155,037 191,615 23.6 Benbrook 19,564 20,208 3.3 Keller 13,683 27,345 99.8 Burleson 16,113 20,976 30.2 Lancaster 22,117 25,894 17.1 Carrollton 82,169 109,576 33.4 Lewisville 46,521 77,737 67.1 Cedar Hill 19,976 32,093 60.7 Mansfield 15,607 28,031 79.6 Cleburne 22,205 26,005 17.1 McKinney 21,283 54,369 155.5 Colleyville 12,724 19,636 54.3 Mesquite 101,484 124,523 22.7 Coppell 16,881 35,958 113.0 North Richland Hills 45,895 55,635 21.2 Corinth 3,944 11,325 187.1 Plano 128,713 222,030 72.5 Dallas 1,006,877 1,188,580 18.0 Richardson 74,840 91,802 22.7 Denton 66,270 80,537 21.5 Rockwall 10,486 17,976 71.4 DeSoto 30,544 37,646 23.3 Rowlett 23,260 44,503 91.3 Duncanville 35,748 36,081 0.9 Saginaw 8,551 12,374 44.7 Ennis 13,883 16,045 15.6 Seagoville 8,969 10,823 20.7 Euless 38,149 46,005 20.6 Southlake 7,065 21,519 204.6 Farmers Branch 24,250 27,508 13.4 Terrell 12,490 13,606 8.9 Flower Mound 15,527 50,702 226.5 The Colony 22,113 26,531 20.0 Forest Hill 11,482 12,949 12.8 University Park 22,259 23,324 4.8 Fort Worth 447,619 534,694 19.5 Watauga 20,009 21,908 9.5 Frisco 6,141 33,714 449.0 Waxahachie 18,168 21,426 17.9 Garland 180,650 215,768 19.4 Weatherford 14,804 19,000 28.3 Grand Prairie 99,616 127,427 27.9 White Settlement 15,472 14,831 -4.1 (in Dallas Co. only) 81,527 99,760 22.4 Wylie 8,716 15,132 73.6 Source: U.S. Census -2-

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Texas Metropolitan Area Population* Change Percent Metropolitan Area 1996 2006 Change Austin-Round Rock 1,073,037 1,513,565 41.1 McAllen-Edinburg-Mission 503,411 700,634 39.2 Laredo 171,583 231,470 34.9 Dallas-Fort Worth-Arlington 4,627,649 6,003,967 29.7 Houston-Sugar Land-Baytown 4,334,020 5,539,949 27.8 Brownsville-Harlingen 312,086 387,717 24.2 San Antonio 1,599,427 1,942,217 21.4 Texas 19,340,342 22,859,968 18.2 Tyler 166,087 194,635 17.2 Sherman-Denison 102,993 118,478 15.0 El Paso 656,482 736,310 12.2 College Station-Bryan 172,341 192,152 11.5 Amarillo 217,579 241,515 11.0 Killeen-Temple-Fort Hood 318,613 351,322 10.3 Waco 205,894 226,189 9.9 Midland 114,412 124,380 8.7 Longview 190,556 203,367 6.7 Lubbock 247,099 261,411 5.8 Texarkana 127,694 134,510 5.3 Victoria 108,636 114,088 5.0 Odessa 121,519 127,462 4.9 Corpus Christi 398,529 415,810 4.3 San Angelo 104,574 105,752 1.1 Abilene 156,351 158,063 1.1 Beaumont-Port Arthur 380,417 379,640 -0.2 Wichita Falls 151,170 145,528 -3.7 * July 1 population estimates Source: U.S. Census Bureau Dallas-Fort Worth-Arlington MSA Projected Population Texas State Data Center Texas Water Development Year (Scenario 0.5) Board 5,161,544 2000 5,161,518 5,667,966 2005 - 6,197,165 2010 6,506,854 6,753,598 2015 - 7,340,103 2020 7,830,371 7,973,634 2025 - 8,648,782 2030 8,947,262 9,360,952 2035 - 10,106,814 2040 10,103,144 Sources: Texas State Data Center (2006 projection) and Texas Water Development Board (2006 projection) -3-

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Texas Metropolitan Area Population Growth Forecast, 2000 - 2020 Texarkana Wichita Falls Beaumont-Port Arthur Abilene San Angelo Sherman-Denison Longview Lubbock Midland Tyler Waco Odessa Victoria College Station-Bryan Amarillo San Antonio Corpus Christi Texas Killeen-Temple-Fort Hood Houston-Sugar Land-Baytown El Paso Dallas-Fort Worth-Arlington Brownsville-Harlingen Austin-Round Rock McAllen-Edinburg-Mission Laredo 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Source: Texas State Data Center – Scenario 0.5 (2006 projection) Household Composition Dallas Fort Worth- Arlington PMSA PMSA Texas Average household size (2000) 2.7 2.68 2.74 Population younger than 18 (2000, in percent) 28.0 28.0 28.2 Population 65 and older (2000, in percent) 7.7 8.8 9.9 Source: U.S. Census Bureau (1999 definition) Distribution by Race and Hispanic or Latino Origin, 2000 (in percent) Dallas Fort Worth- PMSA Arlington PMSA Texas White 67.2 74.3 71.0 Black 25.1 11.2 11.5 Asian 4.0 3.2 2.7 American Indian 0.6 0.6 0.6 Other 10.7 8.3 11.7 Two or more races 2.4 2.4 2.5 Hispanic (of any race) 23.0 18.2 32.0 Source: U.S. Census Bureau (1999 definition) -4-

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Dallas-Fort Worth-Arlington Market Overview 2007 Education Educational Attainment, Persons Age 25 and Older (in percent) High school Some college, Associate's Bachelor's Master's Doctorate graduate no degree degree degree degree degree County 15.1 23.1 6.3 32.8 11.3 1.2 Collin 21.7 21.3 5.0 18.0 6.0 0.8 Dallas 36.1 21.5 4.0 8.5 4.8 0.5 Delta 19.9 26.1 6.7 26.6 7.4 1.2 Denton 30.8 24.6 5.3 12.4 3.2 0.4 Ellis 34.3 22.0 3.8 10.7 4.6 0.8 Hunt 33.2 25.0 5.5 9.7 2.8 0.4 Johnson 33.8 22.9 5.5 8.9 2.4 0.3 Kaufman 30.4 25.3 6.2 12.5 3.8 1.1 Parker 22.9 25.3 5.9 22.4 7.1 0.7 Rockwall 23.5 25.1 6.0 18.8 5.7 0.7 Tarrant 34.8 23.5 4.8 9.2 2.4 0.4 Wise 24.8 22.4 5.2 15.6 5.2 0.8 Texas Source: U.S. Census Bureau 2000 Educational Level, Persons Age 25 and Older, 2000 (in percent), PMSA Dallas Fort Worth- PMSA Arlington PMSA Level of Education High School Graduate or Higher 79.4 81 Bachelor's Degree or Higher 30 25.1 Source: U.S. Census Bureau 2000 (1999 definition) -5-

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Local College and University Enrollment, Fall Semester School 2002 2003 2004 2005 2006 Dallas Baptist University 4,417 4,538 4,714 4,988 5,146 DCCCD Brookhaven College 9,184 9,718 9,714 9,725 9,634 DCCCD Cedar Valley College 3,990 4,443 4,265 4,300 4,357 DCCCD Eastfield College 9,071 9,376 9,410 9,452 9,187 DCCCD El Centro College 5,672 6,182 5,903 6,629 6,529 DCCCD Mountain View College 6,266 5,843 5,980 6,140 6,766 DCCCD North Lake College 8,456 7,960 8,189 8,623 8,830 DCCCD Richland College 13,562 13,204 13,412 13,552 13,774 Paul Quinn College 871 858 966 771 783 Southern Methodist University 10,955 11,161 10,901 11,024 10,990 Tarrant County Northeast Campus 10,882 11,602 12,405 12,372 12,135 Tarrant County Northwest Campus 5,182 6,025 7,241 7,356 7,546 Tarrant County South Campus 8,027 8,200 9,971 9,885 9,431 Tarrant County Southeast Campus 8,370 8,579 8,657 8,975 9,339 Texas Christian University 8,074 8,275 8,632 8,706 8,865 Texas Wesleyan University 2,576 2,845 2,742 2,662 2,930 Texas Woman's University 8,703 9,701 10,746 11,326 11,479 University of Dallas 3,159 3,125 2,987 2,992 2,941 University of North Texas 30,183 31,065 31,155 31,947 33,443 University of Texas at Arlington 23,821 24,979 25,297 25,216 24,825 University of Texas at Dallas 13,229 13,718 14,092 14,399 14,523 Weatherford College 3,569 3,895 4,216 4,437 4,379 Source: Texas Higher Education Coordinating Board -6-

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Dallas-Fort Worth-Arlington Market Overview 2007 Employment Top 20 DFW Employers Employer Sector Employees Wal-Mart Stores, Inc. Retail 29,237 AMR Corp./American Airlines Airline 25,000 Dallas ISD Education 19,359 Texas Health Resources Health care 17,000 Raytheon Co. Defense and aerospace 16,250 Verizon Communications, Inc. Telecommunications 15,900 Lockheed Martin Aeronautics Co. Military aircraft 15,000 Baylor Health Care System Health care 14,572 AT&T Communications 14,000 U.S. Postal Service Government 13,850 HCA Healthcare Health care 13,000 Albertson's Inc. Retail grocery 12,240 City of Dallas Government 12,221 Countrywide Home Loans Financial services 11,798 Kroger Food Stores Grocery 11,500 Citigroup Inc. Financial services 10,635 Brinker International Inc. Restaurants 10,283 TTI, Inc. Semiconductor 9,972 Fort Worth ISD Education 9,881 Texas Instruments Semiconductor 9,700 Source: Greater Dallas Chamber Economic Development Guide Nov-2006 -7-

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Fort Worth Top Ten Employers Employer Sector Employees Airline 28,492 American Airlines Military aircraft 15,000 Lockheed Martin Aeronautics Co. Fort Worth ISD Education 10,389 Bell Helicopter - Textron, Inc. Manufacture vertical flight aircraft 6,000 City of Fort Worth Municipal government 5,750 Tarrant County Government Government 4,050 Chase Financial services 4,000 Cook Children's Medical Center Non-profit children's health care 3,800 Harris Methodist Fort Worth Hospital Medical 3,789 BNSF Railway Transportation services 3,500 Source: Fort Worth Chamber of Commerce Feb-2006 Fort Worth Top Ten Private Employers Employer Sector Employees Airline 28,492 American Airlines Military aircraft 15,000 Lockheed Martin Aeronautics Co. Bell Helicopter - Textron, Inc. Manufacture vertical flight aircraft 6,000 Chase Financial services 4,000 Cook Children's Medical Center Non-profit children's health care 3,800 Harris Methodist Fort Worth Hospital Medical 3,789 BNSF Railway Transportation services 3,500 RadioShack Corp. Electronics 3,337 JPS Health Network Health Care 3,309 Alcon Laboratories Ophthalmic pharmaceuticals 2,977 Source: Fort Worth Chamber of Commerce Feb-2006 -8-

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Arlington Top Ten Employers Employer Sector Employees Arlington Independent School Dist. Education 8,000 University of Texas at Arlington Education 5,700 Six Flags Over Texas Hospitality & Tourism 3,200 General Motors Manufacturing 3,000 The Parks Mall Retail 3,000 Texas Rangers Baseball Club Hospitality & Tourism 1,800 City of Arlington Government 1,700 AmeriCredit Finance 1,300 Arlington Memorial Hospital Health care 1,300 Providian Financial Financial call center 1,200 Source: Arlington Chamber of Commerce April-2007 Arlington Top Ten Private Employers Employer Sector Employees Six Flags Over Texas Hospitality & Tourism 3,200 General Motors Manufacturing 3,000 The Parks Mall Retail 3,000 Texas Rangers Baseball Club Hospitality & Tourism 1,800 AmeriCredit Finance 1,300 Arlington Memorial Hospital Health care 1,300 Providian Financial Finance 1,200 Wal-Mart Retail 1,200 National Semiconductor Manufacturing 1,100 Chase Bank Call Center Finance 1,000 Source: Arlington Chamber of Commerce April-2007 -9-

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Employment Growth by Industry Dallas-Plano- Fort Worth - Irving Arlington Texas Employment Growth 2006 (Percent Change) 3.7 3.0 3.3 Unemployment Rate 2006 (Percent Change) 4.8 4.7 4.9 Net Job Change in 2006 72,200 24,100 318,300 2006 Employment Growth by Sector (Percent Change) Natural Resources and Mining and Construction 5.3 6.9 7.5 Manufacturing 1.8 2.9 3.2 Trade, Transportation, and Utilities 2.0 1.8 2.5 Information 0.0 -2.4 -0.4 Financial Activities 4.2 0.8 2.6 Professional and Business Services 8.2 5.3 6.0 Educational and Health Services 5.2 6.5 2.8 Leisure and Hospitality 3.5 2.2 3.9 Government 2.5 1.6 1.7 Source: Texas Workforce Commission and Real Estate Center at Texas A&M University Texas Metropolitan Area Nonfarm Employment Change Percent Metropolitan Area 1996 2006 Change McAllen-Edinburg-Mission 126,900 202,600 59.7 Midland 126,900 202,600 59.7 Laredo 56,500 84,200 49.0 Austin-Round Rock 540,900 720,000 33.1 Brownsville-Harlingen 94,000 121,300 29.0 College Station-Bryan 71,400 90,200 26.3 Tyler 73,700 91,700 24.4 Killeen-Temple-Fort Hood 97,600 118,100 21.0 Dallas-Fort Worth-Arlington 2,331,600 2,860,800 22.7 San Antonio 658,300 811,300 23.2 Longview 76,100 91,600 20.4 Houston-Sugar Land-Baytown 1,981,700 2,446,000 23.4 Texas 8,257,900 10,053,300 21.7 Lubbock 111,300 128,400 15.4 Waco 92,600 106,000 14.5 Corpus Christi 155,100 173,800 12.1 Odessa 48,100 57,400 19.3 Amarillo 96,900 110,100 13.6 Victoria 45,200 50,000 10.6 El Paso 236,700 264,800 11.9 Texarkana 50,300 55,700 10.7 Sherman-Denison 42,000 44,500 6.0 Abilene 60,600 65,300 7.8 San Angelo 42,500 44,700 5.2 Wichita Falls 59,600 62,500 4.9 Beaumont-Port Arthur 151,200 160,500 6.2 Source: Texas Workforce Commission and Real Estate Center at Texas A&M University - 10 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Metropolitan Area Nonfarm Employment Change 1996-2006 Wichita Falls San Angelo Sherman-Denison Beaumont-Port Arthur Abilene Victoria Texarkana El Paso Corpus Christi Amarillo Waco Lubbock Odessa Longview Killeen-Temple-Fort Hood Texas Dallas-Fort Worth-Arlington San Antonio Houston-Sugar Land-Baytown Tyler College Station-Bryan Brownsville-Harlingen Austin-Round Rock Laredo Midland McAllen-Edinburg-Mission 0% 10% 20% 30% 40% 50% 60% 70% Source: Texas Workforce Commission and Real Estate Center Average Hourly Wage 2005 Brownsville-Harlingen $12.25 McAllen-Edinburg-Mission $12.72 Abilene $13.39 Laredo $13.50 San Angelo $14.08 El Paso $14.14 Wichita Falls $14.17 Killeen-Temple-Fort Hood $14.23 Waco $14.45 Longview $14.63 Sherman-Denison $14.66 Texarkana $14.71 Corpus Christi $14.89 Tyler $15.11 Odessa $15.11 Victoria $15.34 Amarillo $15.37 Lubbock $15.51 Beaumont-Port Arthur $15.59 San Antonio $15.76 College Station-Bryan $15.85 Midland $16.56 Texas $17.10 Austin-Round Rock $18.71 Houston-Sugar Land-Baytown $18.76 Dallas-Fort Worth-Arlington $18.84 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 Source: Texas Workforce Commission - 11 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Dallas-Plano-Irving MD Fort Worth-Arlington MD Nonfarm Employment Nonfarm Employment Percent Percent Change Change Year Employment Year Employment 1,650,000 - 681,500 - 1996 1996 1,742,600 5.6 710,300 4.2 1997 1997 1,826,100 4.8 742,800 4.6 1998 1998 1,893,900 3.7 769,600 3.6 1999 1999 1,966,900 3.9 796,300 3.5 2000 2000 1,976,500 0.5 798,500 0.3 2001 2001 1,916,000 -3.1 789,000 -1.2 2002 2002 1,883,000 -1.7 782,600 -0.8 2003 2003 1,903,300 1.1 794,900 1.6 2004 2004 1,951,500 2.5 813,000 2.3 2005 2005 2,023,700 3.7 837,100 3.0 2006 2006 Source: Texas Workforce Commission and Source: Texas Workforce Commission and Real Estate Center at Texas A&M University Real Estate Center at Texas A&M University Nonfarm Employment Growth Dallas-Fort Worth-Arlington MSA 7.0 6.0 5.0 Percent Change from Previous Year 4.0 3.0 2.0 1.0 0.0 -1.0 -2.0 -3.0 -4.0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Dallas-Plano-Irving Fort Worth-Arlington Source: Texas Workforce Commission and Real Estate Center at Texas A&M University - 12 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Distribution of Employment in Major Categories Dallas-Plano-Irving MD 2,500,000 2,000,000 Total Annual Jobs 1,500,000 1,000,000 500,000 0 2002 2003 2004 2005 2006 Natural Resources and Mining and Construction Manufacturing Trade, Transportation, and Utilities Information Financial Activities Professional and Business Services Educational and Health Services Leisure and Hospitality Government Source: Texas Workforce Commission and Real Estate Center at Texas A&M University Distribution of Employment in Major Categories Fort Worth-Arlington MD 900,000 800,000 700,000 600,000 Total Annual Jobs 500,000 400,000 300,000 200,000 100,000 0 2002 2003 2004 2005 2006 Natural Resources and Mining and Construction Manufacturing Trade, Transportation, and Utilities Information Financial Activities Professional and Business Services Educational and Health Services Leisure and Hospitality Government Source: Texas Workforce Commission and Real Estate Center at Texas A&M University - 13 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Dallas-Fort Worth-Arlington MSA Unemployment Rate 7 6 5 4 Percent 3 2 1 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Source: Texas Workforce Commission and Real Estate Center at Texas A&M University - 14 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Dallas-Fort Worth-Arlington Market Overview 2007 Economy Fort Worth-Arlington MD Dallas-Plano-Irving MD Gross Retail Sales Gross Retail Sales Sales per Sales per Capita Year Total Sales Capita Year Total Sales 1995 1995 39,453,669,760 #N/A 16,781,866,218 #N/A 1996 1996 43,244,343,151 14,056 18,512,124,617 11,935 1997 1997 45,596,786,952 14,346 19,368,252,131 12,166 1998 1998 50,395,804,082 15,350 20,434,340,405 12,498 1999 1999 54,369,358,086 16,080 20,948,095,725 12,479 2000 2000 57,063,698,868 16,534 23,806,625,051 13,919 2001 2001 55,934,773,026 15,601 25,232,389,298 14,301 2002 2002 55,529,200,413 15,154 23,956,639,978 13,246 2003 2003 56,474,148,771 15,111 25,038,695,682 13,544 2004 2004 64,552,459,062 16,930 27,099,154,429 14,358 2005 2005 78,916,290,105 20,271 28,386,068,582 14,736 State Average 2005: $15,935 State Average 2005: $15,935 * 2006 data not available as of April 15, 2007. * 2006 data not available as of April 15, 2007. Source: Texas Comptroller's Office Source: Texas Comptroller's Office Gross Retail Sales per Capita 2005 Brownsville-Harlingen Texarkana McAllen-Edinburg-Mission El Paso Corpus Christi Wichita Falls Beaumont-Port Arthur College Station-Bryan Sherman-Denison Waco Abilene San Angelo Laredo Victoria Killeen-Temple-Fort Hood Houston-Sugar Land-Baytown San Antonio Fort Worth-Arlington MD Amarillo Longview Tyler Austin-Round Rock Odessa Texas Midland Dallas-Plano-Irving MD Lubbock $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 $19,000 $21,000 Source: Texas Comptroller's Office - 15 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Dallas-Fort Worth-Arlington Market Overview 2007 Infrastructure DFW Airline Activity 2002 2003 2004 2005 2006 Airport Dallas Love Field 2,811,471 2,795,554 2,945,588 2,949,266 3,439,050 Enplaned 2,811,283 2,793,376 2,944,168 2,947,499 3,435,667 Deplaned 5,622,754 5,588,930 5,889,756 5,896,765 6,874,717 Total Dallas/Fort Worth International Total enplaned and 52,814,185 53,253,607 59,445,740 59,161,779 60,226,138 deplaned* *Domestic and international passengers Source: Dallas-Fort Worth International Airport and Dallas Love Field Airport Airport Cargo Statistics 2002 2003 2004 2005 2006 Airport Dallas/Fort Worth International* 738,074 734,828 817,825 817,866 834,643 *In US Tons Source: Dallas-Fort Worth International Airport - 16 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Dallas-Fort Worth-Arlington Market Overview 2007 Public Facilities Dallas City Public Facilities Building Permits 2005* Dallas City Building Permit Office * 2006 data not available as of April 15, 2007. Denton City Public Facilities Building Permits 2005* Denton City Building Permit Office * 2006 data not available as of April 15, 2007. - 17 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Hurst City Public Facilities Building Permits 2005* Hurst City Building Permit Office * 2006 data not available as of April 15, 2007. Fort Worth City Public Facilities Building Permits 2005* Fort Worth City Building Permit Office * 2006 data not available as of April 15, 2007. - 18 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Garland City Public Facilities Building Permits 2005* Garland City Building Permit Office * 2006 data not available as of April 15, 2007. - 19 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Dallas-Fort Worth-Arlington Market Overview 2007 Multifamily Apartment Statistics 2006 Texas Metro Dallas Fort Worth Average Average rent per square foot $0.82 $0.75 $0.77 Average rent for units built since 2000 $0.92 $0.83 $0.86 Average occupancy 92.1% 91.1% 92.8% Average occupancy for units built since 2000 94.0% 92.6% 94.1% Source: Apartment MarketData Research Multifamily Building Permits 5+ Multifamily Building Permits 18,000 16,000 14,000 12,000 10,000 Units 8,000 6,000 4,000 2,000 0 p 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Dallas Fort Worth-Arlington 2006 figure is a preliminary number. Source: U.S. Bureau of Census and Real Estate Center at Texas A&M University - 20 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Dallas City Multifamily Building Permits 2005* Dallas City Building Permit Office * 2006 data not available as of April 15, 2007. Flower Mound City Multifamily Building Permits 2005* Flower Mound City Building Permit Office * 2006 data not available as of April 15, 2007. - 21 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Fort Worth City Multifamily Building Permits 2005* Fort Worth City Building Permit Office * 2006 data not available as of April 15, 2007. Denton Multifamily Building Permits 2005* Denton City Building Permit Office * 2006 data not available as of April 15, 2007. - 22 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Garland Multifamily Building Permits 2005* Garland City Building Permit Office * 2006 data not available as of April 15, 2007. Grapevine Multifamily Building Permits 2005* Grapevine City Building Permit Office * 2006 data not available as of April 15, 2007. - 23 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Dallas-Fort Worth-Arlington Market Overview 2007 Housing 2006 Housing Affordability Index Required Median 2006 Median- Income to Family HAI for First-Time MLS Priced Home Qualify Income HAI* Homebuyers** Arlington $130,600 $31,731 $63,400 2.00 1.32 Collin County $192,900 $46,868 $99,609 2.13 1.29 Dallas $158,200 $38,437 $65,500 1.70 1.17 Denton County $161,600 $39,263 $74,480 1.90 1.14 Fort Worth $117,700 $28,597 $63,400 2.22 1.56 Irving $125,000 $30,371 $65,500 2.16 1.27 State $143,000 $35,179 $54,300 1.54 1.05 US $221,900 $54,139 $59,600 1.10 0.62 * The HAI is the ratio of the median family income to the income required to buy the median-priced house using standard mortgage financing at the current interest rate. Standard financing is a fixed-rate, 30-year loan covering 80 percent of the cost of the home. A HAI of 1.00 indicates that the median family income is exactly equal to the required income to qualify for the standard loan to purchase the median-priced house. ** First-time home buyer is assumed to purchase a home equal to the first quartile home price using a 90% home loan at an interest rate 0.5 percent greater than the standard current rate. Source: Real Estate Center at Texas A&M University Existing Home Sales, Dallas Area, Q3-Q4 2006 Total Sales Average Sales Price Days on Market County Q3 Q4 Q3 Q4 Q3 Q4 Collin 3,981 2,951 $241,100 $247,800 56 66 Dallas 6,611 5,556 215,900 209,100 65 70 Denton 3,140 2,285 208,500 217,000 56 64 Ellis 503 408 153,400 152,100 82 86 Henderson 94 70 184,100 162,500 123 127 Hunt 194 167 105,500 112,400 87 99 Kaufman 416 342 134,800 135,400 81 74 Rockwall 433 343 215,500 208,300 77 88 Source: North Texas Real Estate Information System Existing Home Sales, Fort Worth Area, Q3-Q4 2006 Total Sales Average Sales Price Days on Market Q3 Q4 Q3 Q4 Q3 Q4 County Johnson 470 408 $122,400 $120,900 77 75 Parker 451 360 $181,300 $173,300 84 85 Tarrant 7,140 5,481 $176,900 $171,600 65 68 Wise 169 126 $150,400 $135,100 83 87 Source: North Texas Real Estate Information System - 24 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Price Distribution of MLS Homes Sold, Dallas Area (in percent) Price Range 2000 2001 2002 2003 2004 2005 2006 $29,999 or less 1.4 1.2 1.2 1.2 1.5 1.3 1.2 30,000 - 39,999 1.4 1.1 1.1 1.1 1.2 1.1 1.3 40,000 - 49,999 2.0 1.4 1.4 1.3 1.4 1.4 1.5 50,000 - 59,999 2.8 2.1 1.8 1.8 1.9 1.7 1.8 60,000 - 69,999 4.4 3.2 2.7 2.2 2.3 2.2 2.2 70,000 - 79,999 5.1 4.4 3.6 3.2 3.2 2.8 2.8 80,000 - 89,999 6.9 5.5 5.0 4.3 4.3 3.8 3.7 90,000 - 99,999 6.7 6.3 5.9 5.1 5.0 4.2 4.0 100,000 - 119,999 11.5 12.0 12.1 12.0 11.7 10.7 9.6 120,000 - 139,999 10.9 12.0 12.7 12.9 12.4 12.8 12.2 140,000 - 159,999 9.8 10.8 10.7 11.1 10.7 10.8 10.5 160,000 - 179,999 7.8 8.7 9.5 9.5 9.3 9.5 9.1 180,000 - 199,999 5.5 6.1 6.1 6.3 6.2 6.4 6.8 200,000 - 249,999 8.6 9.7 9.8 10.1 10.3 10.7 10.8 250,000 - 299,999 5.3 5.6 5.8 6.2 6.2 6.8 7.1 300,000 - 399,999 4.9 5.1 5.5 5.8 6.1 6.7 7.4 400,000 - 499,999 2.0 1.9 2.0 2.3 2.4 2.7 3.2 500,000 and more 3.1 3.0 3.2 3.4 4.0 4.3 4.8 Source: Real Estate Center at Texas A&M University Price Distribution of MLS Homes Sold, Denton County Area (in percent) Price Range 2000 2001 2002 2003 2004 2005 2006 $29,999 or less 0.2 0.1 0.1 0.2 0.2 0.1 0.1 30,000 - 39,999 0.4 0.2 0.3 0.2 0.2 0.3 0.2 40,000 - 49,999 0.6 0.3 0.5 0.5 0.5 0.5 0.4 50,000 - 59,999 1.0 0.8 0.6 0.6 0.7 0.6 0.6 60,000 - 69,999 1.8 1.0 1.0 0.7 1.0 1.0 0.7 70,000 - 79,999 2.6 2.0 1.6 1.7 1.8 1.4 1.2 80,000 - 89,999 6.8 4.0 3.1 2.4 2.4 2.1 2.0 90,000 - 99,999 6.4 6.0 4.8 4.0 3.6 3.2 2.8 100,000 - 119,999 13.8 12.9 13.7 13.1 12.9 11.5 10.7 120,000 - 139,999 13.6 15.5 16.2 16.3 15.8 16.7 16.1 140,000 - 159,999 11.6 13.4 13.5 14.9 13.9 13.9 14.0 160,000 - 179,999 9.8 9.7 11.3 11.3 10.7 11.7 11.3 180,000 - 199,999 6.8 7.2 7.4 7.1 7.8 7.7 8.0 200,000 - 249,999 11.0 12.6 11.7 11.4 12.0 11.2 12.1 250,000 - 299,999 6.3 6.6 6.0 6.7 6.7 7.1 7.2 300,000 - 399,999 4.5 5.2 4.9 5.4 5.4 6.3 6.9 400,000 - 499,999 1.6 1.5 1.6 2.0 2.1 2.3 2.6 500,000 and more 1.1 1.1 1.8 1.6 2.2 2.5 3.1 Source: Real Estate Center at Texas A&M University - 25 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Price Distribution of MLS Homes Sold, Irving Area (in percent) Price Range 2000 2001 2002 2003 2004 2005 2006 $29,999 or less 0.3 0.2 0.0 0.0 0.1 0.1 0.1 30,000 - 39,999 0.1 0.5 0.8 0.5 0.5 0.5 0.4 40,000 - 49,999 2.1 1.7 0.8 0.4 1.0 1.1 1.0 50,000 - 59,999 3.6 2.1 2.1 1.6 0.9 0.9 1.3 60,000 - 69,999 4.7 3.4 3.2 3.4 2.8 2.8 2.8 70,000 - 79,999 9.5 5.4 3.7 2.7 4.0 3.5 4.2 80,000 - 89,999 16.4 11.7 7.7 7.5 6.4 7.4 6.3 90,000 - 99,999 16.2 15.1 14.5 9.7 11.0 8.8 7.5 100,000 - 119,999 17.3 24.9 29.2 26.5 24.1 24.1 22.4 120,000 - 139,999 9.0 10.1 14.5 15.5 15.1 16.2 15.7 140,000 - 159,999 4.8 5.0 5.9 7.3 7.2 7.5 7.9 160,000 - 179,999 3.6 4.3 4.2 5.6 6.5 4.5 4.7 180,000 - 199,999 2.2 2.3 1.4 2.2 2.7 2.4 3.5 200,000 - 249,999 3.3 4.3 3.5 4.3 3.5 3.6 5.9 250,000 - 299,999 2.4 2.5 2.3 4.1 4.2 4.2 4.7 300,000 - 399,999 2.4 3.8 3.8 5.2 5.4 7.3 4.9 400,000 - 499,999 1.0 1.4 1.0 1.8 2.1 2.4 2.5 500,000 and more 1.0 1.2 1.3 1.6 2.4 2.7 4.1 Source: Real Estate Center at Texas A&M University Price Distribution of MLS Homes Sold, NE Tarrant County (in percent) Price Range 2000 2001 2002 2003 2004 2005 2006 $29,999 or less 0.4 0.1 0.2 0.1 0.2 0.1 0.1 30,000 - 39,999 0.6 0.4 0.3 0.3 0.4 0.3 0.4 40,000 - 49,999 1.2 0.7 0.6 0.5 0.7 0.5 0.6 50,000 - 59,999 2.0 1.3 1.1 0.9 1.1 0.9 0.9 60,000 - 69,999 3.7 2.5 1.9 1.7 2.0 1.3 1.9 70,000 - 79,999 6.0 4.6 4.0 3.2 2.8 2.4 2.5 80,000 - 89,999 6.8 6.3 5.7 5.3 5.0 4.2 4.3 90,000 - 99,999 7.0 6.3 6.5 5.9 5.3 4.4 4.7 100,000 - 119,999 11.8 12.7 11.3 11.6 11.6 10.4 10.2 120,000 - 139,999 11.8 12.5 13.1 13.6 13.8 13.4 13.5 140,000 - 159,999 9.0 10.7 11.4 11.6 11.2 12.1 11.1 160,000 - 179,999 7.1 8.4 9.7 8.9 9.4 9.8 9.9 180,000 - 199,999 4.8 6.3 6.2 6.6 5.9 6.8 6.4 200,000 - 249,999 8.8 8.3 8.9 9.7 9.7 9.4 9.2 250,000 - 299,999 5.9 5.7 5.6 6.1 6.1 7.0 6.5 300,000 - 399,999 7.1 7.3 7.0 7.5 7.0 7.5 7.1 400,000 - 499,999 3.3 2.8 3.1 2.9 3.4 3.6 4.5 500,000 and more 2.7 3.0 3.3 3.6 4.2 5.7 6.2 Source: Real Estate Center at Texas A&M University - 26 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Price Distribution of MLS Homes Sold, Fort Worth Area (in percent) Price Range 2000 2001 2002 2003 2004 2005 2006 $29,999 or less 4.9 4.5 3.7 3.4 3.9 2.6 2.5 30,000 - 39,999 4.7 3.5 3.2 3.4 3.4 2.9 2.5 40,000 - 49,999 6.1 5.0 4.4 4.2 4.1 3.3 3.0 50,000 - 59,999 8.8 6.7 5.6 5.1 4.7 3.7 3.5 60,000 - 69,999 10.1 8.3 7.2 6.5 5.7 4.9 4.7 70,000 - 79,999 11.4 10.6 9.3 8.8 7.4 6.3 6.1 80,000 - 89,999 10.0 10.9 12.0 10.7 9.6 8.1 7.2 90,000 - 99,999 6.8 8.3 9.0 9.5 10.1 8.3 7.6 100,000 - 119,999 9.3 11.4 12.3 13.3 13.3 14.7 15.2 120,000 - 139,999 8.4 9.6 10.4 11.0 11.9 14.9 14.8 140,000 - 159,999 5.6 5.9 6.1 6.5 7.1 8.8 9.4 160,000 - 179,999 3.6 4.2 4.0 4.7 4.8 5.3 6.5 180,000 - 199,999 2.4 2.9 2.8 2.8 2.9 3.4 3.5 200,000 - 249,999 3.7 3.7 4.4 4.2 4.5 4.8 5.6 250,000 - 299,999 1.7 1.9 2.5 2.6 2.7 2.9 3.0 300,000 - 399,999 1.3 1.3 1.8 2.0 2.0 2.6 3.0 400,000 - 499,999 0.5 0.7 0.7 0.5 0.7 1.0 0.9 500,000 and more 0.8 0.7 0.8 0.8 1.1 1.4 1.3 Source: Real Estate Center at Texas A&M University Price Distribution of MLS Homes Sold, Arlington Area (in percent) Price Range 2000 2001 2002 2003 2004 2005 2006 $29,999 or less 0.7 0.3 0.2 0.3 0.2 0.1 0.2 30,000 - 39,999 1.1 0.8 0.7 0.5 0.6 0.6 0.6 40,000 - 49,999 2.1 1.3 1.5 0.9 1.2 1.0 1.5 50,000 - 59,999 4.2 2.6 2.1 1.2 2.0 1.8 1.7 60,000 - 69,999 6.7 4.3 3.7 3.1 3.3 2.5 2.9 70,000 - 79,999 9.6 6.5 5.7 4.9 4.5 4.0 3.7 80,000 - 89,999 13.1 11.9 10.2 8.6 8.5 6.5 6.2 90,000 - 99,999 10.7 12.2 11.6 10.6 10.3 8.5 7.3 100,000 - 119,999 14.1 16.6 18.7 19.7 19.2 17.7 17.2 120,000 - 139,999 11.9 12.3 14.1 15.3 15.0 16.9 16.7 140,000 - 159,999 7.6 9.7 9.8 10.5 9.8 11.9 11.8 160,000 - 179,999 6.2 7.2 7.2 8.1 8.2 8.9 9.2 180,000 - 199,999 3.6 4.9 5.3 5.5 5.7 6.2 6.2 200,000 - 249,999 4.3 4.6 5.0 5.9 5.6 6.4 7.2 250,000 - 299,999 1.9 2.0 1.9 2.3 2.7 2.8 3.6 300,000 - 399,999 1.3 1.9 1.5 1.5 2.2 2.4 2.6 400,000 - 499,999 0.4 0.4 0.6 0.6 0.6 1.0 0.9 500,000 and more 0.5 0.4 0.3 0.3 0.5 0.7 0.6 Source: Real Estate Center at Texas A&M University - 27 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Price Distribution of MLS Homes Sold, 2006 30.0 25.0 20.0 Percent 15.0 10.0 5.0 0.0 ss 9 9 9 9 9 9 9 9 9 e 9 9 9 9 9 9 9 or 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 le ,9 ,9 ,9 ,9 ,9 ,9 ,9 ,9 ,9 ,9 ,9 ,9 ,9 ,9 ,9 ,9 m 9 9 9 9 9 9 9 9 99 9 9 9 9 9 9 9 or 1 3 5 7 9 4 9 9 3 4 5 6 7 8 9 d 1 1 1 1 1 2 2 3 4 an 9 - - - - - - - 9 - - - - - - - - - 0 0 0 0 0 0 0 ,9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ,0 ,0 ,0 0 ,0 ,0 ,0 9 ,0 ,0 ,0 ,0 ,0 ,0 ,0 ,0 ,0 ,0 0, 2 0 0 0 0 0 0 $ 0 0 0 0 0 0 0 0 0 0 3 4 5 6 7 8 9 0 0 2 4 6 8 0 5 0 0 5 1 1 1 1 1 2 2 3 4 Dallas Fort Worth Denton County Irving NE Tarrant County Arlington Source: Real Estate Center at Texas A&M University Property Tax Rates, 2006 Tax Rate per $100 Taxing Entity* Valuation Dallas City of Dallas 0.7292 Dallas County 0.2139 Dallas ISD 1.5026 Total $2.60 Fort Worth City of Fort Worth 0.8600 Fort Worth ISD 1.5140 Tarrant County 0.2715 Total $2.80 Arlington City of Arlington 0.6480 Arlington ISD 1.6100 Tarrant County 0.2715 Total $2.68 * Only the typical taxing entities are listed. However, there are numerous numbers of taxing entities that need to be taken into account for an actual tax rate calculation. See following links for more complete lists: http://www.dallascad.org/forms/2006rate.pdf http://www.tad.org/WebPages/2006_tax_ratesPDF.cfm Source: Dallas Central Appraisal District and Tarrant County Appraisal District - 28 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX National Home Price Appreciation The HPI for each geographic area is estimated using repeated observations of housing values for individual single-family residential properties on which at least two mortgages were originated and subsequently purchased by either Freddie Mac or Fannie Mae. 30% California 25% Florida 20% Change from Previous Year 15% 10% USA 5% Texas 0% -5% 4Q-96 2Q-97 4Q-97 2Q-98 4Q-98 2Q-99 4Q-99 2Q-00 4Q-00 2Q-01 4Q-01 2Q-02 4Q-02 2Q-03 4Q-03 2Q-04 4Q-04 2Q-05 4Q-05 2Q-06 4Q-06 California Florida Texas USA Source: Office of Federal Housing Enterprise Oversight Home Price Appreciation Dallas-Plano-Irving MD The HPI for each geographic area is estimated using repeated observations of housing values for individual single-family residential properties on which at least two mortgages were originated and subsequently purchased by either Freddie Mac or Fannie Mae. 16.0% 14.0% 12.0% Change from Previous Year 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 4Q-96 2Q-97 4Q-97 2Q-98 4Q-98 2Q-99 4Q-99 2Q-00 4Q-00 2Q-01 4Q-01 2Q-02 4Q-02 2Q-03 4Q-03 2Q-04 4Q-04 2Q-05 4Q-05 2Q-06 4Q-06 Dallas-Plano-Irving MD Texas USA Source: Office of Federal Housing Enterprise Oversight - 29 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Home Price Appreciation Fort Worth-Arlington MD The HPI for each geographic area is estimated using repeated observations of housing values for individual single-family residential properties on which at least two mortgages were originated and subsequently purchased by either Freddie Mac or Fannie Mae. 16.0% 14.0% 12.0% Change from Previous Year 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 4Q-96 2Q-97 4Q-97 2Q-98 4Q-98 2Q-99 4Q-99 2Q-00 4Q-00 2Q-01 4Q-01 2Q-02 4Q-02 2Q-03 4Q-03 2Q-04 4Q-04 2Q-05 4Q-05 2Q-06 4Q-06 Fort Worth-Arlington MD Texas USA Source: Office of Federal Housing Enterprise Oversight Dallas Yearly Home Sales and Months Inventory 70,000 7 60,000 6 50,000 5 Months Inventory 40,000 4 Sales 30,000 3 20,000 2 Months of Inventory measures the current absorption rate and how long it 10,000 1 would take for current supply to be depleted if no other listings came on the market. 0 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Sales Months Inventory Source: Real Estate Center at Texas A&M University - 30 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Yearly Homes Sales Plano-Irving Area 18,000 16,000 14,000 12,000 10,000 Sales 8,000 6,000 4,000 2,000 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Denton Co. Collin Co. Irving Garland Source: Real Estate Center at Texas A&M University Yearly Homes Sales Fort Worth-Arlington Area 14,000 12,000 10,000 8,000 Sales 6,000 4,000 2,000 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Fort Worth Arlington NE Tarrant County Source: Real Estate Center at Texas A&M University - 31 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX 2005 Occupied Housing Unit Characteristics Dallas - Fort Worth - Arlington MSA Texas Owner- Renter- Total Owner- Renter- Total occupied occupied occupied occupied occupied occupied housing housing housing housing housing housing units units units units units units Housing Unit Characteristics Occupied housing units 1,274,303 766,089 2,040,392 5,162,604 2,815,491 7,978,095 Household Size 1-person household 17.8% 37.4% 25.2% 19.1% 35.0% 24.7% 2-person household 34.1% 25.8% 31.0% 34.2% 25.8% 31.2% 3-person household 17.4% 15.9% 16.8% 17.2% 16.0% 16.8% 4-or-more-person household 30.8% 20.9% 27.1% 29.5% 23.2% 27.3% Race and Hispanic or Latino Origin of Householder One Race White 78.0% 61.7% 71.9% 79.0% 66.2% 74.5% Black or African American 10.1% 22.7% 14.9% 8.2% 17.9% 11.6% American Indian and Alaska Native 0.6% 0.5% 0.5% 0.5% 0.6% 0.6% Asian 4.1% 4.2% 4.1% 2.9% 3.1% 3.0% Native Hawaiian and Other Pacific Islander 0.0% 0.0% 0.0% 0.0% 0.1% 0.0% Some other race 6.2% 9.5% 7.4% 8.3% 10.8% 9.2% Two or more races 1.1% 1.4% 1.2% 1.0% 1.4% 1.2% Age of Householder Under 35 years 16.0% 46.9% 27.6% 14.4% 46.3% 25.6% 35 to 44 years 24.8% 22.4% 23.9% 21.9% 21.4% 21.7% 45 to 54 years 24.7% 15.8% 21.4% 24.1% 15.4% 21.0% 55 to 64 years 17.6% 7.8% 13.9% 18.1% 8.3% 14.7% 65 to 74 years 10.0% 3.5% 7.6% 11.9% 4.2% 9.2% 75 to 84 years 5.5% 2.4% 4.3% 7.6% 3.1% 6.1% 85 years and over 1.4% 1.1% 1.3% 2.0% 1.3% 1.8% Units in Structure 1, detached 90.6% 20.0% 64.1% 87.5% 28.3% 66.6% 1, attached 2.6% 4.0% 3.1% 2.3% 3.6% 2.8% 2 apartments 0.3% 3.0% 1.3% 0.3% 4.9% 1.9% 3 or 4 apartments 0.6% 9.3% 3.9% 0.4% 8.8% 3.3% 5 to 9 apartments 0.3% 18.8% 7.2% 0.3% 13.8% 5.1% 10 or more apartments 0.9% 42.1% 16.3% 0.7% 35.1% 12.9% Mobile home or other type of housing 4.8% 2.8% 4.0% 8.5% 5.6% 7.5% Year Structure Built 2000 or later 16.5% 12.4% 15.0% 13.7% 10.9% 12.7% 1990 to 1999 19.7% 16.3% 18.4% 18.6% 14.8% 17.2% 1980 to 1989 19.7% 26.7% 22.3% 18.7% 22.5% 20.1% 1960 to 1979 26.2% 31.6% 28.2% 28.7% 35.0% 30.9% 1940 to 1959 14.3% 9.7% 12.6% 15.4% 12.4% 14.3% 1939 or earlier 3.7% 3.3% 3.5% 4.9% 4.5% 4.8% Bedrooms No bedroom 0.2% 1.4% 0.6% 0.2% 1.5% 0.6% 1 bedroom 1.4% 38.2% 15.2% 2.1% 32.6% 12.9% 2 or 3 bedrooms 65.5% 57.0% 62.3% 70.8% 61.7% 67.6% 4 or more bedrooms 33.0% 3.4% 21.9% 26.8% 4.2% 18.9% Annual Household Income and Housing Costs* Median household income (dollars) $65,595 $31,037 $49,740 $54,610 $26,782 $42,139 Annual Median Housing Costs (dollars) $14,340 $8,868 $11,304 $10,536 $8,052 $9,108 Housing Costs as a percentage of household income 21.9% 28.6% 22.7% 19.3% 30.1% 21.6% * in 2005 inflation-adjusted dollars Source: U.S. Census Bureau 2005 and Real Estate Center at Texas A&M University - 32 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Residential Homes Sales Inventory 7 6 5 Months Inventory 4 3 2 Months of Inventory measures the current absorption rate and how long it would take for current supply to be 1 depleted if no other listings came on the market. 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Fort Worth Arlington NE Tarrant County Source: Real Estate Center at Texas A&M University Average Sales Price Plano-Irving Area $275,000 $250,000 $225,000 $200,000 $175,000 $150,000 $125,000 $100,000 $75,000 $50,000 $25,000 $0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Dallas Denton Co. Collin Co. Garland Irving Source: Real Estate Center at Texas A&M University - 33 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Average Sales Price Fort Worth-Arlington Area $250,000 $200,000 $150,000 $100,000 $50,000 $0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Fort Worth Arlington NE Tarrant County Source: Real Estate Center at Texas A&M University Single-Family Homes Sales Volume Dallas-Plano Irving Area, 2006 8,000 7,000 6,000 5,000 Units 4,000 3,000 2,000 1,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Dallas Denton Co. Collin Co. Garland Irving Source: Real Estate Center at Texas A&M University - 34 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Single-Family Homes Sales Volume Fort Worth-Arlington Area, 2006 1,400 1,200 1,000 800 Units 600 400 200 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Fort Worth Arlington NE Tarrant County Source: Real Estate Center at Texas A&M University Single-Family Building Permits and Average Value Dallas 35,000 $250,000 30,000 $200,000 25,000 Average Value $150,000 20,000 Units 15,000 $100,000 10,000 $50,000 5,000 0 $0 p 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2006 figure is a preliminary number. Units Average Value Source: U.S. Bureau of Census and Real Estate Center at Texas A&M University - 35 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Single-Family Building Permits and Average Value Fort Worth-Arlington 20,000 $180,000 18,000 $160,000 16,000 $140,000 14,000 $120,000 Average Value 12,000 $100,000 Units 10,000 $80,000 8,000 $60,000 6,000 $40,000 4,000 $20,000 2,000 0 $0 p 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2006 figure is a preliminary number. Units Average Value Source: U.S. Bureau of Census and Real Estate Center at Texas A&M University - 36 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Dallas-Fort Worth-Arlington Market Overview 2007 Retail Retail Construction Statistics, Year-End 2006 Statistics Dallas Fort Worth Total Gross Leasable Area (square feet) 112,979,328 49,571,712 Overall Occupancy (percent) 89.7 89.4 Total Absorption (square feet) 1,959,672 1,144,437 New Construction in 2006 (square feet) 4,148,908 1,460,899 Class A - Average Annual Rental Rate (per square foot) $24.57 $22.60 Source: The Weitzman Group-Cencor Realty Services Retail Market Statistics Dallas Area 115 91.5 110 91.0 Million Square Feet 105 90.5 Percent 100 90.0 95 89.5 90 89.0 2002 2003 2004 2005 2006 Gross Leasable Area Overall Occupancy Source: The Weitzman Group - Cencor Realty Services - 37 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Retail Market Statistics Fort Worth 51 90.5 50 90.0 49 89.5 48 Million Square Feet 47 89.0 Percent 46 88.5 45 88.0 44 43 87.5 42 87.0 41 40 86.5 2002 2003 2004 2005 2006 Gross Leasable Area Overall Occupancy Source: The Weitzman Group - Cencor Realty Services Dallas City Retail Building Permits 2005* Dallas City Building Permit Office * 2006 data not available as of April 15, 2007. - 38 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Denton City Retail Building Permits 2005* Denton City Building Permit Office * 2006 data not available as of April 15, 2007. Flower Mound Retail Building Permits 2005* Flower Mound City Building Permit Office * 2006 data not available as of April 15, 2007. - 39 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Fort Worth City Retail Building Permits 2005* Fort Worth City Building Permit Office * 2006 data not available as of April 15, 2007. Garland City Retail Building Permits 2005* Garland City Building Permit Office * 2006 data not available as of April 15, 2007. - 40 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Grapevine City Retail Building Permits 2005* Grapevine City Building Permit Office * 2006 data not available as of April 15, 2007. Hurst City Retail Building Permits 2005* Hurst City Building Permit Office * 2006 data not available as of April 15, 2007. - 41 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Mesquite City Retail Building Permits 2005* Mesquite City Building Permit Office * 2006 data not available as of April 15, 2007. North Richland Hills City Retail Building Permits 2005* North Richland Hills City Building Permit Office * 2006 data not available as of April 15, 2007. - 42 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Dallas-Fort Worth-Arlington Market Overview 2007 Hotel Hotel* Occupancy and Rates 2005 2006 Dallas MD** Texas Dallas MD** Texas # Rooms 000's 65.7 333.6 66.6 341.0 Average daily rate 77.53 $74.38 84.32 $80.82 Occupancy rate (in percent) 58.6 59.9 60.6 61.1 *Only properties exceeding $18,000 in the current quarter are included; those units below $18,000 only result in 1.5% of the total state revenues, and have been excluded from this database. ** MD (Metropolitan Division), a sub-unit of an MSA Source: Office of the Governor Economic Development and Tourism and Source Strategies, Inc. of San Antonio Hotel* Occupancy and Rates 2005 2006 Fort Worth - Texas Fort Worth - Texas Arlington MD** Arlington MD** # Rooms 000's 27.2 333.6 26.7 341.0 Average daily rate 75.65 $74.38 83.08 $80.82 Occupancy rate (in percent) 61.0 59.9 64.6 61.1 *Only properties exceeding $18,000 in the current quarter are included; those units below $18,000 only result in 1.5% of the total state revenues, and have been excluded from this database. ** MD (Metropolitan Division), a sub-unit of an MSA Source: Office of the Governor Economic Development and Tourism and Source Strategies, Inc. of San Antonio - 43 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Fort Worth City Hotel Building Permits 2005* Fort Worth City Building Permit Office * 2006 data not available as of April 15, 2007. Grapevine City Hotel Building Permits 2005* Grapevine City Building Permit Office * 2006 data not available as of April 15, 2007. - 44 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Dallas-Fort Worth-Arlington Market Overview 2007 Office Summary of Office Market Indicators - All Space Year-End 2006 Direct Total Vacancy SF Under Net Total Rentable SF Total Vacant Rate (in Constr. or Absorption Submarket Bldgs All Bldgs* SF All Bldgs percent) Renovation (SF)** Dallas Market Dallas CBD 113 35,672,909 7,115,769 19.5 1,296,971 357,000 Uptown / Turtle Creek*** 87 9,891,322 841,526 7.7 1,064,139 373,000 White Rock 63 3,701,056 297,789 8.0 - 32,000 Central Expressway 103 12,897,785 2,087,163 15.9 24,000 198,000 Preston Center 58 4,633,816 566,023 8.8 - (65,000) Stemmons Freeway 130 13,625,915 3,807,081 27.2 - (258,000) South Irving 23 1,746,447 300,150 17.2 - (72,000) Las Colinas / Urban Center 59 9,450,859 2,802,740 28.0 - (482,000) Office Center / LBJ Extension*** 99 14,795,832 2,159,813 13.8 100,000 309,000 DFW Freeport / Coppell 77 9,373,663 1,258,662 12.9 285,928 1,157,000 West LBJ Freeway 53 4,926,566 1,641,879 30.2 - (142,000) Denton / Lewisville 119 5,889,909 1,247,115 20.5 261,000 454,000 Frisco / The Colony 32 2,622,247 295,523 11.0 837,692 563,000 Allen / McKinney 44 2,397,293 525,780 21.9 625,873 204,000 Upper Tollway / West Plano 123 16,822,025 2,630,075 14.7 299,339 206,000 Plano 93 6,910,845 1,038,823 13.7 30,000 (132,000) Richardson 145 13,119,610 2,328,996 17.3 - 509,000 North Dallas Tollway*** 191 21,419,950 3,855,996 16.5 - 406,000 East LBJ Freeway 124 17,917,708 4,720,479 25.1 - 316,000 Garland 40 1,914,641 255,972 12.9 - (46,000) Southeast Dallas 16 806,991 41,887 5.2 - 65,000 Mesquite / Rockwall 25 720,621 81,910 11.4 - 91,000 Southwest Dallas 55 2,120,984 306,147 14.3 - 53,000 Grand Prairie 27 3,417,441 231,883 6.8 108,000 435,000 Total - Dallas 1,899 216,796,435 40,439,181 17.8 4,932,942 4,531,000 Fort Worth Market Fort Worth CBD 79 11,237,812 756,073 5.3 373,584 (97,000) Northwest Fort Worth*** 34 2,753,669 296,526 10.8 75,000 110,000 Alliance Air / Fossil Creek*** 22 2,442,943 210,715 8.4 - 104,000 Westlake / Grapevine 74 5,382,191 434,981 7.7 123,900 536,000 Hurst / Euless / Bedford 78 4,873,520 715,473 14.0 - 385,000 Northeast Fort Worth 37 2,131,218 334,120 15.7 80,000 26,000 Arlington 141 7,985,210 1,178,956 13.9 113,156 (130,000) Southeast Fort Worth 8 911,015 41,961 4.6 72,000 96,000 Southwest Fort Worth*** 98 5,006,001 432,177 8.4 - 16,000 Total - Fort Worth 571 42,723,579 4,400,982 10.3 837,640 1,046,000 * Includes buildings 15,000 SF Rentable (RBA) and greater. Does not include buildings under construction or buildings owned by the government. ** Net change in physical occupancy for direct and sublet space combined. *** Inventory has been amended per CoStar. Source: Delta Associates - 45 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Summary of Office Market Indicators - Class Space A* Year-End 2006 Direct Total Total Vacancy SF Under Net Total Rentable SF Vacant SF Rate** (in Constr. or Absorption Submarket Bldgs All Bldgs* All Bldgs percent) Renovation*** (SF)** Dallas Market Dallas CBD 21 22,955,693 4,109,069 17.4% 1,052,063 341,000 Uptown / Turtle Creek**** 27 6,640,542 471,478 6.1 1,064,139 369,000 White Rock 0 - - - - - Central Expressway 17 6,068,987 1,068,142 17.5 - 153,000 Preston Center 15 2,807,916 429,611 10.6 - (135,000) Stemmons Freeway 7 2,906,026 935,740 31.9 - (6,000) South Irving 0 - - - - 31,000 Las Colinas / Urban Center 23 6,400,725 1,683,391 23.9 - 90,000 Office Center / LBJ Extension 31 7,673,392 368,323 4.4 - 355,000 DFW Freeport / Coppell 11 2,552,388 439,011 16.2 200,028 696,000 West LBJ Freeway 5 1,265,910 443,069 29.2 - (46,000) Denton / Lewisville 3 360,000 - 0.0 227,000 160,000 Frisco / The Colony 16 1,964,858 137,540 6.6 511,441 558,000 Allen / McKinney 3 116,280 60,349 51.9 449,947 87,000 Upper Tollway / West Plano 49 11,005,240 1,386,660 11.8 299,339 17,000 Plano 7 1,215,862 252,899 19.3 - - Richardson 31 5,473,924 547,392 9.3 - 406,000 North Dallas Tollway 39 10,087,593 1,543,402 12.8 - 374,000 East LBJ Freeway 21 7,642,874 1,796,075 21.6 - 382,000 Garland 0 - - - - - Southeast Dallas 0 - - - - - Mesquite / Rockwall 0 - - - - - Southwest Dallas 0 - - - - - Grand Prairie 7 2,025,990 - 0.0 - 38,000 Total - Dallas 333 99,164,200 15,672,151 14.6 3,803,957 3,870,000 Fort Worth Market Fort Worth CBD 10 5,628,405 95,683 1.1% 330,584 16,000 Northwest Fort Worth**** 1 169,966 30,254 17.8 - - Alliance Air / Fossil Creek 3 426,000 29,394 6.9 - 114,000 Westlake / Grapevine 15 2,982,786 74,570 2.5 101,500 507,000 Hurst / Euless / Bedford 5 596,819 95,491 11.9 - 149,000 Northeast Fort Worth 2 103,938 16,734 16.1 - 21,000 Arlington 11 1,501,698 162,183 8.1 - (121,000) Southeast Fort Worth 1 541,630 - 0.0 - - Southwest Fort Worth 6 878,694 36,026 4.1 - 25,000 Total - Fort Worth 54 12,829,936 540,335 3.4 432,084 711,000 * Class A per CoStar and greater than 50,000 SF. Does not include buildings under construction or government-owned. ** Net change in physical occupancy for direct and sublet space combined. *** Includes only buildings of 50,000 SF or greater. **** Inventory has been amended per CoStar. Source: Delta Associates - 46 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Summary of Office Market Indicators - Class Space B* Year-End 2006 Direct Total Total Vacancy SF Under Net Total Rentable SF Vacant SF Rate (in Constr. or Absorption Submarket Bldgs All Bldgs* All Bldgs percent) Renovation*** (SF)** Dallas Market Dallas CBD 31 7,137,537 1,555,983 21.3% 244,908 22,000 Uptown / Turtle Creek 44 2,725,239 354,281 12.5 - 13,000 White Rock 48 3,206,382 266,130 8.3 - 13,000 Central Expressway 67 6,157,959 892,904 14.1 24,000 23,000 Preston Center 27 1,443,041 135,646 7.6 - 71,000 Stemmons Freeway 78 8,131,469 2,431,309 28.7 - (269,000) South Irving 10 1,320,327 192,768 14.6 - (110,000) Las Colinas / Urban Center 31 2,778,174 1,094,601 39.3 - (570,000) Office Center / LBJ Extension**** 61 6,652,043 1,716,227 24.5 100,000 (5,000) DFW Freeport / Coppell 63 6,696,860 810,320 11.7 85,900 450,000 West LBJ Freeway 31 3,305,450 1,080,882 30.7 - (76,000) Denton / Lewisville 87 4,656,607 1,164,152 24.1 34,000 317,000 Frisco / The Colony 15 625,728 156,432 25.0 326,251 2,000 Allen / McKinney 38 1,989,776 366,119 18.4 175,926 138,000 Upper Tollway / West Plano 72 5,730,023 1,243,415 20.4 - 186,000 Plano 67 5,060,450 693,282 12.3 30,000 (82,000) Richardson 90 6,598,764 1,649,691 24.6 - 138,000 North Dallas Tollway**** 131 10,788,037 2,233,124 20.1 - 8,000 East LBJ Freeway 96 9,941,709 2,883,096 28.3 - (41,000) Garland 25 1,322,857 222,240 16.1 - (56,000) Southeast Dallas 8 472,331 15,115 3.2 - 62,000 Mesquite / Rockwall 18 559,521 32,452 5.8 - 89,000 Southwest Dallas 39 1,694,079 206,678 12.0 - 45,000 Grand Prairie 11 1,135,332 213,442 18.8 108,000 399,000 Total - Dallas 1,188 100,129,695 21,610,289 20.8 1,128,985 767,000 Fort Worth Market Fort Worth CBD 36 3,807,094 590,100 12.1% 43,000 (122,000) Northwest Fort Worth**** 17 2,177,338 256,926 11.8 75,000 98,000 Alliance Air / Fossil Creek**** 17 1,685,562 178,670 10.3 - (8,000) Westlake / Grapevine 55 2,271,094 356,562 14.9 22,400 27,000 Hurst / Euless / Bedford 50 3,354,630 543,450 16.0 - 180,000 Northeast Fort Worth 22 1,634,294 212,458 13.0 80,000 46,000 Arlington 85 5,024,661 859,217 16.6 113,156 (42,000) Southeast Fort Worth 6 289,385 41,961 14.5 72,000 96,000 Southwest Fort Worth**** 61 3,196,881 335,673 10.2 - (54,000) Total - Fort Worth 349 23,440,939 3,375,017 13.6 405,556 221,000 * Class B per CoStar. Buildings under 50,000 SF even if CoStar classified them as Class A. Does not include buildings under construction or buildings owned by the government. ** Net change in physical occupancy for direct and sublet space combined. *** Includes buildings smaller than 50,000 SF even if CoStar classifies them as Class A. **** Inventory has been amended per CoStar. Source: Delta Associates - 47 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Rent Rate Analysis of Class A & B Office Buildings % Change Dec-05 Dec-06 12/05 - 12/06 Class A Class B Class A Class B Class A Class B Submarket Dallas Market Dallas CBD $23.39 $16.67 $23.80 $16.91 1.80% 1.40% Uptown / Turtle Creek 25.11 18.97 27.15 19.83 8.1 4.5 White Rock - 14.59 - 14.80 - 1.4 Central Expressway 20.63 17.14 20.98 17.62 1.7 2.8 Preston Center 25.60 19.30 26.39 20.18 3.1 4.6 Stemmons Freeway 20.35 15.29 20.51 15.45 0.8 1.0 South Irving 16.02 13.28 - 13.16 - -0.9 Las Colinas / Urban Center 22.55 17.61 23.98 18.15 6.3 3.1 Office Center / LBJ Extension 22.63 18.62 23.76 19.25 5.0 3.4 DFW Freeport / Coppell 21.44 18.04 21.96 19.20 2.4 6.4 West LBJ Freeway 21.50 17.50 21.75 17.95 1.2 2.6 Denton / Lewisville - 17.29 - 17.47 - 1.0 Frisco / The Colony 23.02 20.30 24.29 20.73 5.5 2.1 Allen / McKinney - 18.10 24.50 18.47 - 2.0 Upper Tollway / West Plano 23.44 21.56 23.99 22.06 2.3 2.3 Plano 20.94 17.62 21.53 18.40 2.8 4.4 Richardson 21.36 16.94 22.20 17.56 3.9 3.7 North Dallas Tollway 22.57 18.89 23.40 19.25 3.7 1.9 East LBJ Freeway 21.54 17.55 21.71 17.36 0.8 -1.1 Garland - 12.29 - 12.50 - 1.7 Southeast Dallas - 13.91 - 13.70 - -1.5 Mesquite / Rockwall - 13.65 - 14.28 - 4.6 Southwest Dallas - 12.99 - 13.55 - 4.3 Grand Prairie 19.44 17.75 19.44 18.39 0.0 3.6 Dallas Average 20.93 16.91 21.68 17.34 3.7 2.5 Fort Worth Market Fort Worth CBD $21.45 $15.78 $21.75 $16.01 1.40% 1.50% Northwest Fort Worth - 16.18 - 16.15 - -0.2 Alliance Air / Fossil Creek - 18.64 - 18.25 - -2.1 Westlake / Grapevine 23.83 18.91 24.35 18.90 2.2 -0.1 Hurst / Euless / Bedford 17.57 14.72 18.00 15.07 2.4 2.4 Northeast Fort Worth 20.08 14.90 20.09 14.85 0.0 -0.3 Arlington 20.30 16.73 20.55 16.95 1.2 1.3 Southeast Fort Worth - 13.70 - 13.95 - 1.8 Southwest Fort Worth 19.86 14.93 20.05 15.00 1.0 0.5 Fort Worth Average 20.52 16.05 20.80 16.13 1.4 0.5 Source: Delta Associates - 48 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Average Office Sale Price per SF Dallas-Fort Worth $140.00 $129 $120 $120.00 $114 $108 $103 $100.00 $80.00 $60.00 $40.00 $20.00 $0.00 2002 2003 2004 2005 2006 Source: Delta Associates Dallas Office Market Net Absorption, All Space, Year-End 2006 1,400,000 1,200,000 1,000,000 800,000 Square Feet 600,000 400,000 200,000 0 (200,000) (400,000) (600,000) Fr ay s l BD lle nd o po ten r ay Fr ell s rie k m nC y on ny n k r en / U h I y co Lew ay ey o an ing al e te la la a an xp Roc a ee an so nt vi pp w LB o ll w w w W nn So eew w lo si he arla ai al al en Tu s C rv rd Cr Pl Pl hw ck is ss ee ee BJ Ce Co Pr ite t D D Co Ki ra hite ha la re t ut Ro T G Fr le t ay Mc es nd ee Ex qu as es e al ut / th Ric Ea llas rt e m to Th J s en BJ W / D ra rt rb on / / lE St res L a G / n / To len ut D FW / L / to st t P es So n So Al nt as is llw ow es Fr r W te or Ce Fr D in M pt N ol U C C er D e s pp La ic U ff O Source: Delta Associates - 49 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Fort Worth Office Market Net Absorption (SF), Year-End 2006 600,000 500,000 400,000 300,000 Square Feet 200,000 100,000 0 (100,000) (200,000) Fort Worth Northwest Alliance Air Westlake / Hurst / Northeast Arlington Southeast Southwest CBD Fort Worth / Fossil Grapevine Euless / Fort Worth Fort Worth Fort Worth Creek Bedford Source: Delta Associates Dallas Office Market, All Space Year-End 2006 40 35.0 35 30.0 30 25.0 Million Square Feet 25 20.0 Percent 20 15.0 15 10.0 10 5.0 5 0 0.0 o s s er no Fr ay BD er g Fr ell lle ra hite ek ay ay Ki y ay k y ey n nd ll e Co n la nd lla an es wa ut wa ri xp Roc on in io Ea llas dso nt nt pp vi w w w e w W nn R i Pl a la ai al Tu s C rb Irv ns a Cr Pl ol hw ck LB oll ee ee ee ss is BJ Ce on Ce ar Pr ite t D G tD ar te C w la t re ut Ro T G Fr le h es ch ay Mc c o Le ee Ex an n e s al / rt ea em t o Th J J s W / D ra W ort ce ina So LB / / lE St r e s M uth a / n To len / U p m FW / L D / to t st qu P es / So n So Al th en nt s llw is ow es er Fr or Ce Fr D nt pt N l Ce Co U er D s pp La ffi U O Total Rentable SF Vacancy Rate Source: Delta Associates - 50 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Fort Worth Office Market, All Space Year-End 2006 12 18 16 10 14 8 12 Million Square Feet 10 Percent 6 8 4 6 4 2 2 0 0 Fort Worth Northwest Alliance Air Westlake / Hurst / Northeast Arlington Southeast Southwest CBD Fort Worth / Fossil Grapevine Euless / Fort Worth Fort Worth Fort Worth Creek Bedford Total Rentable SF Vacancy Rate Source: Delta Associates Rent Rate Analysis of Class A & B Office Buildings Dallas Area $25.00 $21.68 $21.58 $20.99 $20.93 $20.60 $20.00 $17.42 $17.34 $17.07 $16.91 $16.85 $15.00 $10.00 $5.00 $0.00 2002 2003 2004 2005 2006 Class A Class B Source: Delta Associates - 51 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Rent Rate Analysis of Class A & B Office Buildings Fort Worth Area $25.00 $20.80 $20.52 $19.92 $19.85 $19.82 $20.00 $16.13 $16.05 $15.92 $15.84 $15.77 $15.00 $10.00 $5.00 $0.00 2002 2003 2004 2005 2006 Class A Class B Source: Delta Associates Average Asking Rent/SF Dallas Submarket, 2006 $30.00 $25.00 Per Square Foot $20.00 $15.00 $10.00 $5.00 $0.00 ay o k LB ol n d ee y y ay s l ie le BD k L B n C ng s r ay n o te er cK ny l lle y al el Fr te la lla a co Le wa oc ee e s ne n so n n io ir Ex nt to sw lw w o u ew w ckw vi pp o la qu ea rla la vi C n al ns ra Ex e R ra Da Ea lla rd W Cr W in ol e on Ce e is P P rb Ir D Tu as LB Co es a re e P C ha w t G o Fr T it t th st l n d pr to J F To lle he es al R M es t / h rt ic s a n J s D / R T / J / te es W or es th S e th / a G U / llw n n al it m r p / D u st t ou P ay / ee tr So FW / m n th en C as A is en ow S D er Fr or Fr in D S C t M pt en N ol U C er s e pp La ic ff U O Class A Class B Source: Delta Associates - 52 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Average Asking Rent/SF Fort Worth Submarket $30.00 $25.00 $20.00 Per Square Foot $15.00 $10.00 $5.00 $0.00 Fort Worth Northwest Alliance Air Westlake / Hurst / Northeast Arlington Southeast Southwest CBD Fort Worth / Fossil Grapevine Euless / Fort Worth Fort Worth Fort Worth Creek Bedford Class A Class B Source: Delta Associates Carrollton Office Building Permits 2005* Carrollton City Building Permit Office * 2006 data not available as of April 15, 2007. - 53 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Dallas City Office Building Permits 2005* Dallas City Building Permit Office * 2006 data not available as of April 15, 2007. Denton City Office Building Permits 2005* Denton City Building Permit Office * 2006 data not available as of April 15, 2007. - 54 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Flower Mound Office Building Permits 2005* Flower Mound City Building Permit Office * 2006 data not available as of April 15, 2007. Fort Worth City Office Building Permits 2005* Fort Worth City Building Permit Office * 2006 data not available as of April 15, 2007. - 55 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Garland City Office Building Permits 2005* Garland City Building Permit Office * 2006 data not available as of April 15, 2007. Grapevine City Office Building Permits 2005* Grapevine City Building Permit Office * 2006 data not available as of April 15, 2007. - 56 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Mesquite City Office Building Permits 2005* Mesquite City Building Permit Office * 2006 data not available as of April 15, 2007. North Richland Hills City Office Building Permits 2005* North Richland Hills City Building Permit Office * 2006 data not available as of April 15, 2007. - 57 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Dallas-Fort Worth-Arlington Market Overview 2007 Industrial Summary of Industrial Market Indicators - All Space Year-End 2006 Vacancy Total Direct Total Rate SF Under Net Submarket Vacant Vacancy SF All Rate Rentable Sf w/Sublet Constr. or Absorption Bldgs (percent) (percent) Renovation All Bldgs.* (SF)** Dallas Allen / McKinney 8,332,673 861,827 10.3 10.30% 180,000 19,000 Brookhollow 56,010,831 4,550,516 7.9 8.1 - 473,000 Central East Dallas 24,249,707 1,354,029 5.6 5.6 - (28,000) Denton / Lewisville 21,051,954 3,796,550 17.5 18.0 1,847,300 617,000 East Dallas / Mesquite 15,956,540 1,401,417 6.4 8.8 1,047,200 752,000 East DFW Airport / Las Colinas 38,711,216 5,768,595 13.0 14.9 2,082,649 982,000 Hines North 36,000,935 2,671,806 7.3 7.4 - (54,000) Lonestar / Turnpike 27,721,758 3,557,477 12.4 12.8 - 862,000 Metropolitan / Addison 22,550,960 2,987,690 10.4 13.2 - (466,000) North Stemmons / Valwood 48,362,481 5,122,639 9.6 10.6 591,049 1,209,000 North Trinity 16,999,628 1,581,725 9.0 9.3 - (22,000) Northeast Dallas / Garland 45,146,373 4,162,622 8.5 9.2 - 1,778,000 Plano 19,098,614 3,675,850 18.6 19.2 32,400 2,322,000 Redbird Airport 16,073,281 942,830 5.6 5.9 - 370,000 Richardson 19,681,641 3,549,240 17.1 18.0 - 341,000 Rockwall / Forney / Terrell 5,599,777 202,640 3.6 3.6 - (40,000) Southeast Dallas / I-45 10,588,564 801,258 7.6 7.6 792,600 100,000 Southwest Dallas / US 67 10,460,643 1,287,911 11.2 12.3 - 35,000 Total - Dallas 442,597,576 48,276,622 10.1 10.9 6,573,198 9,250,000 Fort Worth Arlington / Mansfield 20,122,435 1,808,223 9.0 9.0 186,947 260,000 East Fort Worth 22,795,504 2,142,801 8.9 9.4 365,000 61,000 Lower Great Southwest 30,401,062 3,445,281 11.3 11.3 - (429,000) Meacham / Fossil Creek 30,324,926 1,986,652 6.2 6.6 396,178 (296,000) North Central Fort Worth 12,056,497 716,864 5.9 5.9 - (286,000) Northeast Tarrant / Alliance 21,518,545 1,012,568 4.7 4.7 - 826,000 South Central Fort Worth 11,120,793 906,525 8.2 8.2 78,014 (607,000) South Tarrant County 21,689,577 1,706,749 7.9 7.9 - 1,240,000 Upper Great Southwest 38,418,363 5,438,385 13.4 14.2 969,400 2,240,000 West DFW Airport / Grapevine 16,129,834 2,213,989 12.1 13.7 113,640 (798,000) West Tarrant County 3,979,595 44,740 1.1 1.1 - 11,000 Total - Fort Worth 228,557,131 21,422,777 9.0 9.4 2,109,179 2,222,000 * Does not include buildings under construction or buildings owned by the government. ** Net change in physical occupancy for direct and sublet space combined. Source: Delta Associates - 58 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Dallas Industrial Market Vacancy Rate 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Flex/High-Tech Manufacturing Warehouse/Distribution 2002 2003 2004 2005 2006 Source: Delta Associates Fort Worth Industrial Market Vacancy Rate 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Flex/High-Tech Manufacturing Warehouse/Distribution 2002 2003 2004 2005 2006 Source: Delta Associates - 59 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Dallas Industrial Market Net Absorption 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 Square Feet 3,000,000 2,000,000 1,000,000 0 -1,000,000 -2,000,000 Flex/High-Tech Manufacturing Warehouse/Distribution 2002 2003 2004 2005 2006 Source: Delta Associates Fort Worth Industrial Market Net Absorption 5,000,000 4,000,000 3,000,000 Square Feet 2,000,000 1,000,000 0 -1,000,000 -2,000,000 Flex/High-Tech Manufacturing Warehouse/Distribution 2002 2003 2004 2005 2006 Source: Delta Associates - 60 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Dallas Industrial Market Under Construction 7,000,000 6,000,000 5,000,000 Square Feet 4,000,000 3,000,000 2,000,000 1,000,000 0 Flex/High-Tech Manufacturing Warehouse/Distribution 2004 2005 2006 Source: Delta Associates Dallas Industrial Market Year-End 2006 60 20 18 50 16 Million Square Feet 14 40 12 Percent 30 10 8 20 6 4 10 2 0 0 ke w d th on s as l ity o t 45 ite nd 67 n lle ey el or la oo an so lo or lin rr pi vi nn ds in qu la I- al rp S ol di lw Pl Te is N rn ar Tr D Co U ar i Ai / es kh Ad cK w Va Tu es G s / ch t / th Le M ird oo as la s M s in / / ey La / Ri or al / la / lE Br s db an / H / s ar rn D al N la s on n n / ra la Re lit D al st to le Fo t t al m as or nt po D Al ne en t D es em l/ rp he Ce st ro Lo D st hw al Ai ea ut et St Ea w So ut M FW th ck th So or Ro or D N N st Ea Total Rentable SF Vacancy Rate Source: Delta Associates - 61 -

Million Square Feet Ar Square Feet lin gt on A / M 0 5 10 15 20 25 30 35 40 45 lle n an / sf ie M ld 500,000 1,000,000 1,500,000 2,000,000 2,500,000 0 Ea cK (1,000,000) (500,000) in st B n C Fo ro ey Lo rt en w ok W tr ho er Source: Delta Associates Source: Delta Associates or al G D th llo re w Ea en at st to D n M Ea So Ea / al st ut ea st la D s hw ch Le w FW Da am es t lla is A s / vi / ir Fo N lle M po ss or i rt es Dallas – Fort Worth – Arlington, TX th lC / qu re Ce La it e ek s nt C N ra l ol or H Fo in th Lo e rt in Real Estate Center Market Overview 2007 n as W as es es t M N or ta t Ta h et r N or rr / ro th an or po t Tu th So / lit rn ut St Al an h pi lia em / ke Ce m nc A n e tr dd on s al Total Rentable SF is - 62 - N / Fo on V rt or W So th al w u N ea or th Year-End 2006 oo th or st d Ta th D rr al Tr an la U in t s Dallas Industrial Market it pp / Co y e G r un Fort Worth Industrial Market G W ar ty Net Absorption, Year-End 2006 re la es at t nd Vacancy Rate D So R FW P ut ed la hw R Ai bi no rp rd es oc t A or kw t ir / G al R po l/ ra ic rt W S pe ha Fo v es ou rd rn in t e th so ey Ta n S ea / rr ou st an Te t D th w rr Co al el la l es un s t D ty / al I- 4 la 5 s / U S 6 0 2 4 6 8 7 10 12 14 16 Percent

Square Feet A rl in gt on / 500,000 1,000,000 1,500,000 2,000,000 2,500,000 0 M (1,000,000) (500,000) an s fi e ld Ea Source: Delta Associates st Fo Lo w rt W er G or th re at M So u ea th ch w am Dallas – Fort Worth – Arlington, TX es t / N Fo or ss th il C C re Real Estate Center Market Overview 2007 en N ek tr or al F th or ea t W st Ta or th rr an S t / ou A th - 63 - C lli an en ce tr a lF or S t W ou th or th Ta Fort Worth Industrial Market rr Net Absorption, Year-End 2006 U an t pp C e r ou W G n ty re es t at D S FW ou A th w ir po es t rt / G ra W pe es t vi n e Ta rr an t C ou n ty

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Carrollton Industrial Building Permits 2005* Carrollton City Building Permit Office * 2006 data not available as of April 15, 2007. Dallas Industrial Building Permits 2005* Dallas City Building Permit Office * 2006 data not available as of April 15, 2007. - 64 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Denton City Industrial Building Permits 2005* Denton City Building Permit Office * 2006 data not available as of April 15, 2007. Fort Worth City Industrial Building Permits 2005* Fort Worth City Building Permit Office * 2006 data not available as of April 15, 2007. - 65 -

Real Estate Center Market Overview 2007 Dallas – Fort Worth – Arlington, TX Garland City Industrial Building Permits 2005* Garland City Building Permit Office * 2006 data not available as of April 15, 2007. Grapevine City Industrial Building Permits 2005* Grapevine City Building Permit Office * 2006 data not available as of April 15, 2007. - 66 -

This annual report is created free of charge by the Real Estate Center at Texas A&M University. We strive to provide the most accurate, up-to-date, and insightful data to paint a detailed picture of Texas’ Metropolitan Statistical Areas. However, links contained in this report may change in time and become obsolete. The Real Estate Center advises to contact the original source if any of the links are found to be broken. The Center also provides numerous publications, resources, and data on building permits, employment, population, and home sales at http://recenter.tamu.edu. For the latest daily news visit http://recenter.tamu.edu/mnews/mnsearch.asp?AID=8. Report compiled by: Administrative Coordinator Edith Craig Real Estate / Market Research Analyst Dr. Isilay Civan Database Support Blake Lacy Real Estate Center, 2115 TAMU, College Station, TX 77843-2115 Phone: 979.845.2031 | Fax: 979.845.0460

Real Estate Market Overview: Dallas-Forth Worth

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