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MARKET OVERVIEW KEY TAKEAWAYS

High employmentand population due to influx of Millennial and Gen Z entering the workforce

Densification continues but trend is less aggressive

Highest total of new office construction since mid- 1980s, tenants favor new and redeveloped properties

Owners completing gut renovations of older stock to compete with new development

Demand remains robust due to continued TAMI sector growth and tenant-base diversification

Coworking/flexible office space continue to impact market

Midtown and Downtown remain a tenants’ market, Midtown South remains one of the tightest markets in the nation

Significant tenant concession packages being offered

8 | Stephens Inc.