Strategic Advantages

2014 Economic Forecast Mike Berry President

Hillwood Properties

Strategic Advantages

Strategic Advantages

2014 Economic Forecast: Year of the Rebound? Presented by Mike Berry

President, Hillwood Properties

November  6,  2013  October 25, 2013

Strategic Advantages Regional Growth Trends

D/FW METROPLEX

§  Fourth-largest population center nationally with

approximately 6.5 million residents

§  Metroplex workforce is approximately 3 million

§  Projected 1.5 to 2.0 million in population growth over next

decade.

§  Fifth-largest metropolitan economy in the United States with a

$401 billion GDP that outpaces Venezuela, Thailand and

Denmark (Source: IHS Global Insight)

§  $15 billion of highway construction underway in North Texas

Strategic Advantages

Multifamily 3Q12 3Q13 % Change

Existing Units 649,164 662,037 1.98%

Vacancy 6.20% 5.60% -9.68%

New Deliveries (Units) 6,501 12,873 98.02%

Absorption (Units) 10,146 15,934 57.05%

MULTIFAMILY SECTOR

Real Estate Growth Trends

Strategic Advantages

Office 3Q12 3Q13 % Change

Existing SF 339,072,504 340,691,359 .48%

Vacancy 16.00% 15.00% -6.25%

New Deliveries YTD (SF) 1,423,592 1,963,800 37.95%

Absorption (SF) 2,456,693 3,875,388 57.75%

OFFICE SECTOR

Real Estate Growth Trends

Strategic Advantages

Retail 3Q12 3Q13 % Change

Existing SF 372,074,288 374,543,184 0.66%

Vacancy 8.40% 7.60% -9.52%

New Deliveries YTD (SF) 1,854,426 1,877,493 1.24%

Absorption (SF) 3,436,903 3,411,436 -0.74%

RETAIL SECTOR

Real Estate Growth Trends

Strategic Advantages

Industrial 3Q12 3Q13 % Change

Existing SF 779,028,445 782,778,360 0.48%

Vacancy 8.80% 7.80% -11.36%

New Deliveries YTD (SF) 372,322 2,089,793 461.29%

Absorption (SF) 8,574,106 7,382,427 -13.90%

INDUSTRIAL/MANUFACTURING SECTOR

Real Estate Growth Trends

Strategic Advantages Fast Growing Submarkets

FW CBD 20 min.!

DFW Airport 20 min.

18,000 ACRES, MASTER PLANNED – 35,000 JOBS

Overview

Denton 20 min.

Strategic Advantages

AllianceTexas Corporate Base

DEVELOPMENT STATISTICS

§ $7.71 billion invested

§ $43.74 billion economic impact

§ 32.7 million+ SF developed

§ 344 corporate residents

§ 65 companies listed on the Fortune 500,

Global 500 or Forbes’ Top List of Private Firms

§ 35,000+ employees

§ Fastest growing area of the nation’s fastest

growing metropolitan city (500,000+)

§ Population of 1.5 million within 15 miles of

Fort Worth Alliance Airport

Overview ECONOMIC ENGINE TO NORTH TEXAS

Strategic Advantages Alliance Gateway

17 MILLION SQUARE FEET DEVELOPED

Strategic Advantages Alliance Center

3.6 MILLION SQUARE FEET DEVELOPED

Strategic Advantages Westport at Alliance

5 MILLION SQUARE FEET DEVELOPED

Photo Date 6.28.13

ALLIANCE TOWN CENTER – MASTER DEVELOPMENT PLAN

Alliance Town Center

1.4 MILLION SQUARE FEET DEVELOPED

FIVE GUYS®

BURGERS and FRIES

TheBoardroom

Salon for MenSalon for Men

Strategic Advantages ALLIANCE TOWN CENTER NORTH

Alliance Town Center

Hillwood Commons I

Strategic Advantages

Automotive Consumer Goods/ Services

Pharmaceutical/ Health Care

Logistics Aerospace/ Aviation

Electronics

Corporate Residents

INDUSTRY CLUSTERS

Strategic Advantages

1.1M SF

2,000 Jobs

E-Commerce Fulfillment

788,000 SF 1,000 Jobs

E-Commerce Fulfillment

1.3M SF

500 Jobs

Manufacturing

445,000

2,000 Jobs

Manufacturing

New Growth

Strategic Advantages Impact of the Panama Canal

WHAT WILL IT MEAN FOR TEXAS?

§  Expansion delayed until 2015

§  Port of Houston well-positioned

§  Potential for North Texas growth due to inland

port capabilities

§  Strong potential for more export; specifically

energy section

Strategic Advantages Other Things to Watch

§  Constitutional Amendments – Proposition 6 Water

§  Transportation Funding Initiatives – November 2014

§  Continued Growth of E-Commerce Fulfillment Activity

§  Continued Growth of Manufacturing Activity

Strategic Advantages

2014 Economic Forecast: Year of the Rebound? Presented by Mike Berry

President, Hillwood Properties

November  6,  2013  October 25, 2013