Tier Reit (TIER) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Supplemental Operating and Financial Data

For the Quarter Ended September 30, 2016

About the Company

TIER REIT, Inc. is a self-managed, Dallas-based real estate investment trust focused on delivering outsized stockholder return through stock price appreciation and dividend growth while offering unparalleled tenant service. TIER REIT’s investment strategy is to acquire, develop, and operate a portfolio of best-in-class properties in select U.S. markets that consistently lead the nation in both population and office-using employment growth. Within these markets, we target TIER1submarkets, which are primarily urban and amenity-rich locations.

As of September 30, 2016, we owned interests in 30 operating office properties with approximately 10.2 million rentable square feet, one non-operating property with approximately 331,000 rentable square feet, and one development property that will consist of approximately 291,000 rentable square feet. Our properties are located in 13 markets throughout the United States.

Board of Directors	Executive Officers and Senior Management
Richard I. Gilchrist	Scott W. Fordham
Chairman of the Board and Independent Director	Chief Executive Officer, President, and Director
Scott W. Fordham	Dallas E. Lucas
Chief Executive Officer, President, and Director	Chief Financial Officer and Treasurer
Charles G. Dannis	William J. Reister
Independent Director	Chief Investment Officer and Executive Vice President
Thomas M. Herzog	Telisa Webb Schelin
Independent Director	Chief Legal Officer, Executive Vice President, and Secretary
Dennis J. Martin	James E. Sharp
Independent Director	Chief Accounting Officer and Executive Vice President
G. Ronald Witten	R. Heath Johnson
Independent Director	Managing Director - Asset Management
	Dean R. Hook
	Senior Vice President - Information Systems
	Anubhav Raj
	Senior Vice President - Capital Markets

Company Information
Corporate Headquarters	Trading Information	Investor inquiries should be directed to:
5950 Sherry Lane, Suite 700	Trading Symbol: TIER	Scott McLaughlin
Dallas, Texas 75225	New York Stock Exchange	Senior Vice President - Investor Relations
		at 972.483.2400 or
		ir@tierreit.com
Website	Research Coverage
www.tierreit.com	J.P. Morgan Securities	Janney Montgomery Scott LLC
	Anthony Paolone	Robert Stevenson
	212.622.6682	640.840.3217

Supplemental Operating and Financial Data

For the Quarter Ended September 30, 2016

Table of Contents

Overview and Highlights
Overview	1
Financial Highlights	2-3
Consolidated Balance Sheets	4
Consolidated Statements of Operations	5
Calculation of FFO and Additional Information	6
Calculation of EBITDA	7
Non Wholly-Owned Entities Financial Summary	8
Same Store Analysis	9
Schedule of Properties Owned	10
Portfolio Analysis	11
Components of Net Asset Value	12
Selected Non-Stabilized Properties	13
Significant Tenants	14
Industry Diversification	15
Leasing
Leasing Activity	16-17
Lease Expirations	18-19
Occupancy Trends	20
Capital Expenditures
Leasing Cost Summary	21
Leasing Cost Trend Analysis	22
Development, Leasing, and Capital Expenditures Summary	23
Other Information
Potential Future Development Sites	24
Summary of Development Activity	25
Properties Under Development	26
Acquisition and Disposition Activities	27
Summary of Financing	28
Principal Payments by Year	29
Definitions of Non-GAAP Financial Measures	30-31

Forward-Looking Statements

This supplemental operating and financial data report contains forward-looking statements within the meaning of the federal securities laws relating to the business and financial outlook of TIER REIT, Inc. that are based on current expectations, estimates, forecasts, and projections and are not guarantees of future performance. Statements contained herein may be impacted by a number of risks and uncertainties, including the company’s ability to rent space on favorable terms, its ability to address debt maturities and fund its capital requirements, its intentions to sell certain properties, its intentions with respect to development activity, the value of its assets, its anticipated capital expenditures, and other matters. Words such as “may,” "will," “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “objectives,” “strategies,” “goals,” and variations of these words and similar expressions are intended to identify forward-looking statements. Actual results may differ materially from those expressed in these forward-looking statements, and you should not place undue reliance on any such statements. A number of important factors could cause actual results to differ materially from the forward-looking statements contained in this document, as well as other factors described in the Risk Factors section of TIER REIT, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2015. Forward-looking statements in this document speak only as of the date on which such statements were made, and we undertake no obligation to update any such statements that may become untrue because of subsequent events.

Overview

For the Quarter Ended September 30, 2016

Highlights and Financial Results

• Net loss for the third quarter of 2016 was $1.0 million as compared to $15.8 million for the third quarter of 2015, a decrease in loss of $14.8 million. Net loss attributable to common stockholders for the third quarter of 2016 was $1.0 million, or $0.02 per diluted share, as compared to $13.8 million, or $0.28 per diluted share, for the third quarter of 2015, a decrease in loss of $12.8 million, or $0.26 per diluted share.

• FFO attributable to common stockholders for the third quarter of 2016 was $19.2 million, or $0.40 per diluted share, as compared to $18.9 million, or $0.39 per diluted share, for the third quarter of 2015, an increase of $0.3 million, or $0.01 per diluted share.

• FFO attributable to common stockholders, excluding certain items, for the third quarter of 2016 was $18.3 million, or $0.38 per diluted share, as compared to $20.7 million, or $0.42 per diluted share, for the third quarter of 2015, a decrease of $2.4 million, or $0.04 per diluted share.

• Same Store GAAP NOI for the third quarter of 2016 was $28.4 million, as compared to $30.5 million for the third quarter of 2015, a decrease of $2.1 million, or 7.0%.

• Same Store Cash NOI for the third quarter of 2016 was $27.3 million, as compared to $26.9 million for the third quarter of 2015, an increase of $0.4 million, or 1.4%.

Property Results

• Occupancy at September 30, 2016, was 89.8%, a decrease of 60 basis points from June 30, 2016. The sale of Hurstbourne Park and Hurstbourne Place increased occupancy by 30 basis points, which was offset by a decrease in our remaining operating portfolio of 90 basis points.

• 263,000 square feet leased - 82,000 square feet of renewals, 58,000 square feet of expansion space, and 123,000 square feet of new leasing

Real Estate Activities

• Hurstbourne Business Center was sold for a combined contract sales price of approximately $41.0 million. Hurstbourne Business Center is an approximately 418,000 square feet mixed use development located in Louisville, Kentucky, and consists of Hurstbourne Park and Hurstbourne Place, both office buildings, and Hurstbourne Plaza, a retail center.

• As of September 30, 2016, five of our properties (One Oxmoor Place, Steeplechase Place, Lakeview, Hunnington, and 801 Thompson) were held for sale. On October 27, 2016, 801 Thompson was sold for a contract sales price of $4.9 million. 801 Thompson is located in Rockville, Maryland, and contains approximately 51,000 rentable square feet.

Capital Market Activities

• We paid off (without penalty) the $62.8 million loan secured by our Three Parkway property that was scheduled to mature in November 2016. This loan had an effective interest rate of 5.55%.

• We authorized distribution of $0.18 per share of common stock for the third quarter of 2016, which was paid on October 7, 2016.

• Subsequent to September 30, 2016, we paid off (without penalty) the $70.0 million loan secured by our One & Two Eldridge Place property that was scheduled to mature in January 2017. This loan had an effective interest rate of 5.49%.

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 1

Financial Highlights
(in thousands, except per share data, effective rent data, percentages, and number of properties)
	30-Sep-16			30-Sep-15			30-Sep-16			30-Jun-16			31-Mar-16			31-Dec-15			30-Sep-15
Portfolio Summary:
Total operating office properties	30			35			30			32			33			34			35
Rentable square feet (100%) (operating properties)	10,155			12,615			10,155			10,494			11,535			11,971			12,615
Rentable square feet (own %) (operating properties)	9,039			10,918			9,039			9,378			10,419			10,855			10,918
Occupancy %	89.8		%	89.4		%	89.8		%	90.4		%	88.9		%	89.7		%	89.4		%
Executed % SF leased	90.2		%	90.2		%	90.2		%	90.7		%	89.7		%	89.8		%	90.2		%
Economic % SF leased	85.6		%	83.6		%	85.6		%	86.9		%	84.6		%	84.1		%	83.6		%
Average effective rent/square foot	$	26.73		$	25.50		$	26.73		$	26.42		$	26.62		$	25.69		$	25.50
	Nine Months Ended						Three Months Ended
	30-Sep-16			30-Sep-15			30-Sep-16			30-Jun-16			31-Mar-16			31-Dec-15			30-Sep-15
Financial Results:
Revenue	$	188,743		$	215,280		$	55,998		$	64,267		$	68,478		$	67,085		$	69,423
Property related expenses	(56,605		)	(67,346		)	(16,315		)	(19,805		)	(20,485		)	(21,812		)	(21,290		)
Real estate taxes	(28,843		)	(31,512		)	(8,350		)	(9,429		)	(11,064		)	(8,622		)	(9,670		)
Property management fees	(720		)	(4,779		)	(210		)	(226		)	(284		)	(249		)	(342		)
NOI	$	102,575		$	111,643		$	31,123		$	34,807		$	36,645		$	36,402		$	38,121
Base rent	$	134,879		$	155,610		$	42,393		$	45,579		$	46,907		$	47,494		$	47,351
Free rent	$	(7,367	)	$	(14,256	)	$	(1,975	)	$	(2,133	)	$	(3,259	)	$	(3,557	)	$	(3,718	)
Net loss attributable to common stockholders	$	(23,084	)	$	(20,892	)	$	(1,025	)	$	(9,352	)	$	(12,707	)	$	(11,216	)	$	(13,849	)
Diluted loss per common share (1)	$	(0.49	)	$	(0.42	)	$	(0.02	)	$	(0.20	)	$	(0.27	)	$	(0.24	)	$	(0.28	)
FFO attributable to common stockholders	$	57,615		$	17,736		$	19,239		$	18,144		$	20,232		$	17,363		$	18,883
Diluted FFO per common share	$	1.21		$	0.36		$	0.40		$	0.38		$	0.42		$	0.37		$	0.39
FFO attributable to common stockholders, excluding certain items	$	60,365		$	55,362		$	18,324		$	20,700		$	21,341		$	18,017		$	20,737
Diluted FFO, excluding certain items, per common share	$	1.26		$	1.11		$	0.38		$	0.43		$	0.45		$	0.38		$	0.42
Normalized EBITDA	$	97,007		$	106,263		$	30,036		$	32,957		$	34,014		$	34,789		$	35,752
Weighted average common shares outstanding - basic	47,403			49,539			47,413			47,406			47,390			47,244			48,843
Weighted average common shares outstanding - diluted	47,796			49,725			47,846			47,826			47,715			47,436			49,034
Selected Additional Trend Information:
Renewal % based on square feet	54		%	78		%	41		%	45		%	66		%	79		%	69		%
Distributions declared on common shares	$	25,783		$	17,550		$	8,595		$	8,594		$	8,594		$	8,576		$	8,539
Annualized distribution yield (2)	4.7		%	N/A			4.7		%	4.7		%	5.4		%	4.9		%	4.9		%

(1) In periods of net loss from continuing operations there are no dilutive securities and diluted loss per common share is calculated using weighted average common shares outstanding - basic as the denominator.

(2) Based on the closing price of our common stock as of the last day of the associated period.

Occupancy % represents the total square footage subject to commenced leases as of the reporting date as a percentage of the total rentable square feet (at our ownership interest).

Executed % SF leased represents the total square footage subject to commenced leases plus the square footage for currently vacant space that is subject to executed leases that have not commenced as of the reporting date as a percentage of the total rentable square feet (at our ownership interest).

Economic % SF leased represents the total square footage subject to commenced leases as of the reporting date adjusted to exclude the square footage associated with leases receiving rental abatements as a percentage of the total rentable square feet (at our ownership interest).

Average effective rent represents 12 times the sum of the monthly contractual amounts for base rent and the pro rata budgeted operating expense reimbursements, as of period end, related to leases in place as of period end, as reduced for free rent and excluding any scheduled future rent increases, as adjusted for our ownership interest.

This section includes non-GAAP financial measures, which are accompanied by what we consider the most directly comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Quantitative reconciliations of the differences between the non-GAAP financial measures presented and the most directly comparable GAAP financial measures are shown on pages 6-7. A description of the non-GAAP financial measures we present and a statement of the reasons why management believes the non-GAAP measures provide useful information to investors about the Company’s financial condition and results of operations can be found on pages 30-31.

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 2

Financial Highlights (continued)
(in thousands, except percentages and ratios)
	30-Sep-16			30-Sep-15			30-Sep-16			30-Jun-16			31-Mar-16			31-Dec-15			30-Sep-15
Selected Balance Sheet Items:
Total book value of real estate	$	1,248,491		$	1,590,422		$	1,248,491		$	1,320,775		$	1,503,088		$	1,573,248		$	1,590,422
Cash and cash equivalents	$	51,466		$	7,769		$	51,466		$	78,599		$	5,532		$	12,248		$	7,769
Unconsolidated cash and cash equivalents (at ownership %)	$	5,479		$	6,293		$	5,479		$	4,874		$	4,175		$	4,086		$	6,293
Restricted cash	$	8,586		$	16,615		$	8,586		$	10,778		$	12,756		$	10,712		$	16,615
Total assets	$	1,570,685		$	1,906,755		$	1,570,685		$	1,640,666		$	1,787,304		$	1,873,745		$	1,906,755
Mortgage debt	$	270,758		$	463,629		$	270,758		$	334,605		$	358,717		$	415,425		$	463,629
Revolving credit facility and term loans	$	575,000		$	626,000		$	575,000		$	575,000		$	683,000		$	665,000		$	626,000
Unconsolidated debt (at ownership %)	$	103,350		$	90,909		$	103,350		$	98,384		$	82,747		$	80,189		$	90,909
Total liabilities	$	951,701		$	1,216,646		$	951,701		$	1,015,748		$	1,142,948		$	1,195,926		$	1,216,646
Capitalization:
Shares of common stock outstanding	47,413			47,242			47,413			47,413			47,405			47,362			47,242
OP units and restricted stock units outstanding	150			82			150			150			141			29			82
Shares of restricted stock outstanding	333			189			333			333			333			282			189
	47,896			47,513			47,896			47,896			47,879			47,673			47,513
Closing stock price	$	15.44		14.72			$	15.44		$	15.33		$	13.44		$	14.75		$	14.72
Market capitalization (1)	$	739,514		$	699,391		$	739,514		$	734,246		$	643,494		$	703,177		$	699,391
Total debt (2)	$	949,108		$	1,180,538		$	949,108		$	1,007,989		$	1,124,464		$	1,160,614		$	1,180,538
Net debt (3)	$	892,163		$	1,166,476		$	892,163		$	924,516		$	1,114,757		$	1,144,280		$	1,166,476
Total capitalization	$	1,688,622		$	1,879,929		$	1,688,622		$	1,742,235		$	1,767,958		$	1,863,791		$	1,879,929
	Nine Months Ended						Three Months Ended
	30-Sep-16			30-Sep-15			30-Sep-16			30-Jun-16			31-Mar-16			31-Dec-15			30-Sep-15
Ratios:
NOI margin % (4)	54.3		%	51.9		%	55.6		%	54.2		%	53.5		%	54.3		%	54.9		%
Normalized fixed charge coverage (5)	2.45			1.93			2.42			2.48			2.46			2.35			2.35
Normalized interest coverage (5)	2.74			2.23			2.74			2.76			2.72			2.67			2.68
Net debt/normalized annualized estimated full period EBITDA from properties owned at period end (5)	N/A			N/A			7.63x			7.57x			8.40x			8.22x			8.02x
(1) Market capitalization is equal to outstanding shares (common stock, restricted stock, OP units, and restricted stock units, as if converted) times the closing price of our common stock as of the the last day of the associated period.
(2) Includes book value of mortgage debt, the revolving credit facility and term loans, and unconsolidated debt (at ownership %).
(3) Total debt less cash and cash equivalents and unconsolidated cash and cash equivalents (at ownership %).
(4) NOI margin % is equal to NOI divided by revenue.
(5) See page 7 for more detailed information.

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 3

Consolidated Balance Sheets
(in thousands, except share and per share data)
		30-Sep-16			30-Jun-16			31-Mar-16			31-Dec-15			30-Sep-15
Assets
	Real estate
	Land	$	143,581		$	159,736		$	176,309		$	179,989		$	184,318
	Land held for development	45,059			45,059			45,059			45,059			44,834
	Buildings and improvements, net	1,048,194			1,108,255			1,276,519			1,348,200			1,361,270
	Real estate under development	11,657			7,725			5,201			—			—
	Total real estate	1,248,491			1,320,775			1,503,088			1,573,248			1,590,422
	Cash and cash equivalents	51,466			78,599			5,532			12,248			7,769
	Restricted cash	8,586			10,778			12,756			10,712			16,615
	Accounts receivable, net	67,100			66,328			78,562			76,228			74,817
	Prepaid expenses and other assets	5,540			5,356			6,025			6,712			22,875
	Investments in unconsolidated entities	76,954			77,606			90,000			88,998			85,377
	Deferred financing fees, net	2,698			2,999			3,310			3,111			3,308
	Acquired above-market leases, net	1,017			1,136			1,258			1,388			1,518
	Other lease intangibles, net	61,919			67,202			76,787			82,160			84,351
	Other intangible assets, net	9,888			9,887			9,986			10,086			10,185
	Assets associated with real estate held for sale	37,026			—			—			—			—
Total assets		$	1,570,685		$	1,640,666		$	1,787,304		$	1,864,891		$	1,897,237
Liabilities and equity
Liabilities:
	Mortgage debt	$	270,758		$	334,605		$	358,717		$	415,425		$	463,620
	Unsecured term loans	575,000			575,000			575,000			525,000			525,000
	Unsecured revolving credit facility	—			—			108,000			140,000			101,000
	Unamortized debt issuance costs	(7,838		)	(8,310		)	(8,744		)	(8,854		)	(9,518		)
	Unamortized mark to market premium	—			—			—			—			9
	Total notes payable, net	837,920			901,295			1,032,973			1,071,571			1,080,111
	Accounts payable and accrued liabilities	65,924			61,721			56,681			71,597			74,196
	Payables to related parties	—			—			294			292			302
	Acquired below-market leases, net	7,856			8,961			10,456			11,934			13,321
	Distributions payable	8,602			8,601			8,600			8,596			8,556
	Other liabilities	30,005			35,170			33,944			23,082			30,642
	Obligations associated with real estate held for sale	1,394			—			—			—			—
Total liabilities		951,701			1,015,748			1,142,948			1,187,072			1,207,128
Commitments and contingencies
Series A Convertible Preferred Stock		—			—			—			2,700			2,700
Equity:
	Preferred stock	—			—			—			—			—
	Convertible stock	—			—			—			—			—
	Common stock, $.0001 par value per share, 382,499,000 shares authorized	5			5			5			5			5
	Additional paid-in capital	2,605,569			2,604,614			2,603,564			2,600,193			2,598,333
	Cumulative distributions and net loss attributable to common stockholders	(1,971,588		)	(1,961,968		)	(1,944,022		)	(1,922,721		)	(1,902,927		)
	Accumulated other comprehensive loss	(16,662		)	(19,262		)	(16,732		)	(3,860		)	(10,148		)
	Stockholders’ equity	617,324			623,389			642,815			673,617			685,263
	Noncontrolling interests	1,660			1,529			1,541			1,502			2,146
Total equity		618,984			624,918			644,356			675,119			687,409
Total liabilities and equity		$	1,570,685		$	1,640,666		$	1,787,304		$	1,864,891		$	1,897,237
Common stock, number of shares issued and outstanding		47,412,705			47,412,705			47,404,980			47,362,372			47,241,851

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 4

	Consolidated Statements of Operations
	(in thousands, except share and per share amounts)
		Nine Months Ended						Three Months Ended
		30-Sep-16			30-Sep-15			30-Sep-16			30-Jun-16			31-Mar-16			31-Dec-15			30-Sep-15
Revenue
	Rental income	$	177,854		$	198,351		$	53,975		$	60,588		$	63,291		$	61,736		$	62,794
	Straight-line rent and lease incentive revenue	5,903			9,655			756			1,897			3,250			3,310			2,547
	Above- and below-market rent amortization	3,399			4,586			936			1,115			1,348			1,256			2,064
	Lease termination fees	1,587			2,688			331			667			589			783			2,018
	Total revenue	188,743			215,280			55,998			64,267			68,478			67,085			69,423
Expenses
	Property related expenses	56,605			67,346			16,315			19,805			20,485			21,812			21,290
	Real estate taxes	28,843			31,512			8,350			9,429			11,064			8,622			9,670
	Property management fees	720			4,779			210			226			284			249			342
	Total property operating expenses	86,168			103,637			24,875			29,460			31,833			30,683			31,302
	Interest expense	31,977			42,116			9,754			10,722			11,501			11,668			11,884
	Interest rate hedge ineffectiveness expense	407			—			(1,534		)	1,941			—			—			—
	Amortization of deferred financing costs	2,308			2,721			785			784			739			1,048			914
	Amortization of mark to market	—			(90		)	—			—			—			(9		)	(33		)
	Total interest expense	34,692			44,747			9,005			13,447			12,240			12,707			12,765
	General and administrative	14,735			17,171			4,460			4,765			5,510			5,569			6,378
	BHT Advisors termination fee and HPT Management buyout fee	—			10,301			—			—			—			—			101
	Tender offer and listing costs	—			5,553			—			—			—			(27		)	2,562
	Amortization of restricted shares and units	3,118			1,604			1,069			1,055			994			3,371			505
	Straight-line rent expense adjustment	—			(81		)	—			—			—			—			(67		)
	Acquisition expense	—			1,459			—			—			—			21			644
	Asset impairment losses	8,977			132			4,151			—			4,826			—			—
	Real estate depreciation and amortization	87,351			92,320			25,062			30,519			31,770			29,910			31,217
	Depreciation and amortization - non-real estate assets	623			229			71			278			274			272			229
	Total expenses	235,664			277,072			68,693			79,524			87,447			82,506			85,636
	Interest and other income	866			553			248			344			274			257			267
	Loss on early extinguishment of debt	—			(21,478		)	—			—			—			(24		)	(30		)
Loss from continuing operations before income taxes, equity
	in operations of investments, and gain (loss) on sale of assets	(46,055		)	(82,717		)	(12,447		)	(14,913		)	(18,695		)	(15,188		)	(15,976		)
	Provision for income taxes	(467		)	(1,298		)	(4		)	(281		)	(182		)	(209		)	(36		)
	Equity in operations of investments	1,884			153			646			823			415			3,829			(159		)
Loss from continuing operations before gain (loss) on sale of assets		(44,638		)	(83,862		)	(11,805		)	(14,371		)	(18,462		)	(11,568		)	(16,171		)
Discontinued operations:
	Income from discontinued operations	—			1,390			—			—			—			17			21
	Gain on sale of discontinued operations	—			15,086			—			—			—			297			403
Discontinued operations		—			16,476			—			—			—			314			424
Gain (loss) on sale of assets		21,526			44,479			10,777			5,010			5,739			(2		)	(85		)
Net loss		(23,112		)	(22,907		)	(1,028		)	(9,361		)	(12,723		)	(11,256		)	(15,832		)
	Noncontrolling interests - continuing operations	28			118			3			9			16			41			58
	Noncontrolling interests - discontinued operations	—			(29		)	—			—			—			(1		)	(1		)
	Dilution of Series A Convertible Preferred Stock	—			1,926			—			—			—			—			1,926
Net loss attributable to common stockholders		$	(23,084	)	$	(20,892	)	$	(1,025	)	$	(9,352	)	$	(12,707	)	$	(11,216	)	$	(13,849	)
Basic and diluted weighted average common shares outstanding		47,402,724			49,538,652			47,412,705			47,405,767			47,389,591			47,244,471			48,842,711
Basic and diluted earnings (loss) per common share:
	Continuing operations	$	(0.49	)	$	(0.75	)	$	(0.02	)	$	(0.20	)	$	(0.27	)	$	(0.24	)	$	(0.29	)
	Discontinued operations	—			0.33			—			—			—			—			0.01
Basic and diluted loss per common share		$	(0.49	)	$	(0.42	)	$	(0.02	)	$	(0.20	)	$	(0.27	)	$	(0.24	)	$	(0.28	)
Distributions declared per common share		$	0.54		$	0.36		$	0.18		$	0.18		$	0.18		$	0.18		$	0.18
Net income (loss) attributable to common stockholders:
	Continuing operations	$	(23,084	)	$	(37,339	)	$	(1,025	)	$	(9,352	)	$	(12,707	)	$	(11,529	)	$	(14,272	)
	Discontinued operations	—			16,447			—			—			—			313			423
Net loss attributable to common stockholders		$	(23,084	)	$	(20,892	)	$	(1,025	)	$	(9,352	)	$	(12,707	)	$	(11,216	)	$	(13,849	)

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 5

Calculation of FFO and Additional Information
(in thousands, except per share data)
		Nine Months Ended						Three Months Ended
		30-Sep-16			30-Sep-15			30-Sep-16			30-Jun-16			31-Mar-16			31-Dec-15			30-Sep-15
Net loss		$	(23,112	)	$	(22,907	)	$	(1,028	)	$	(9,361	)	$	(12,723	)	$	(11,256	)	$	(15,832	)
Net loss attributable to noncontrolling interests		28			89			3			9			16			40			57
Dilution of Series A Convertible Preferred Stock		—			1,926			—			—			—			—			1,926
Net loss attributable to common stockholders		(23,084		)	(20,892		)	(1,025		)	(9,352		)	(12,707		)	(11,216		)	(13,849		)
Adjustments (1):
	Real estate depreciation and amortization - consolidated	87,351			92,320			25,062			30,519			31,770			29,910			31,217
	Real estate depreciation and amortization - unconsolidated joint ventures	6,108			4,558			2,058			2,005			2,045			2,427			1,904
	Real estate depreciation and amortization - noncontrolling interest	(6		)	(10		)	—			—			(6		)	(10		)	(10		)
	Impairment of depreciable real estate assets	8,977			132			4,151			—			4,826			—			—
	Gain on sale of depreciable real estate	(21,586		)	(59,565		)	(10,837		)	(5,010		)	(5,739		)	(3,698		)	(318		)
	Taxes associated with sale of depreciable real estate	(88		)	1,259			(152		)	—			64			—			(5		)
	Noncontrolling interests	(57		)	(66		)	(18		)	(18		)	(21		)	(50		)	(56		)
FFO attributable to common stockholders		57,615			17,736			19,239			18,144			20,232			17,363			18,883
Adjustments (1):
	Acquisition expenses	—			1,837			—			—			—			26			642
	Severance charges	493			—			—			—			493			—			—
	Tender offer and listing costs	—			5,553			—			—			—			(27		)	2,562
	Interest rate hedge ineffectiveness expense (2)	407			—			(1,534		)	1,941			—			—			—
	Loss on early extinguishment of debt	—			21,575			—			—			—			31			127
	Default interest (3)	1,852			355			619			616			617			625			355
	BHT Advisors termination fee and HPT Management buyout fee	—			10,301			—			—			—			—			101
	Noncontrolling interests	(2		)	(69		)	—			(1		)	(1		)	(1		)	(7		)
	Dilution of Series A Convertible Preferred Stock	—			(1,926		)	—			—			—			—			(1,926		)
FFO attributable to common stockholders, excluding certain items		$	60,365		$	55,362		$	18,324		$	20,700		$	21,341		$	18,017		$	20,737
Additional Information (1)
Recurring capital expenditures		(25,984		)	(41,109		)	(5,256		)	(11,375		)	(9,353		)	(11,113		)	(13,795		)
Straight-line rent adjustments		(7,755		)	(9,744		)	(1,247		)	(2,551		)	(3,957		)	(2,662		)	(2,525		)
Above- and below-market rent amortization		(3,629		)	(4,861		)	(1,014		)	(1,192		)	(1,423		)	(1,330		)	(2,139		)
Amortization of deferred financing fees and mark to market		2,501			2,764			828			880			793			1,095			930
Amortization of restricted shares and units		3,118			1,604			1,069			1,055			994			3,371			505
Depreciation and amortization - non-real estate assets		623			229			71			278			274			272			229
Weighted average common shares outstanding - basic		47,403			49,539			47,413			47,406			47,390			47,244			48,843
Weighted average common shares outstanding - diluted		47,796			49,725			47,846			47,826			47,715			47,436			49,034
Diluted FFO per common share		$	1.21		$	0.36		$	0.40		$	0.38		$	0.42		$	0.37		$	0.39
Diluted FFO, excluding certain items, per common share		$	1.26		$	1.11		$	0.38		$	0.43		$	0.45		$	0.38		$	0.42

(1) Includes our pro rata share of consolidated and unconsolidated amounts, including discontinued operations.

(2) Interest rate swaps are adjusted to fair value through other comprehensive income (loss). However, because our interest rate swaps do not have a LIBOR floor while the hedged debt is subject to a LIBOR floor, the portion of the change in fair value of our interest rate swaps attributable to this mismatch is reclassified to interest rate hedge ineffectiveness expense.

(3) We have a non-recourse loan in default which subjects us to incur default interest at a rate that is 500 basis points higher than the stated interest rate. Although there can be no assurance, we anticipate that when this property is sold or when ownership of this property is conveyed to the lender, this default interest will be forgiven.

For additional information regarding the non-GAAP measures, see pages 30-31.

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 6

Calculation of EBITDA
(in thousands, except ratios)
		Three Months Ended
		30-Sep-16			30-Jun-16			31-Mar-16			31-Dec-15			30-Sep-15
Net loss attributable to common stockholders		$	(1,025	)	$	(9,352	)	$	(12,707	)	$	(11,216	)	$	(13,849	)
Adjustments:
	Noncontrolling interests	(2		)	(6		)	(8		)	(20		)	(27		)
	Dilution of Series A Convertible Preferred Stock	—			—			—			—			(1,926		)
	Interest expense:
	Interest expense - consolidated	9,754			10,722			11,501			11,668			11,884
	Interest expense - unconsolidated entities	725			702			641			727			1,437
	Interest rate hedge ineffectiveness expense	(1,534		)	1,941			—			—			—
	Amortization of deferred financing costs - consolidated	785			784			739			1,048			914
	Amortization of deferred financing costs - unconsolidated entities	43			96			54			56			48
	Mark to market - consolidated	—			—			—			(9		)	(33		)
	Mark to market - unconsolidated entities	—			—			—			—			1
	Total interest expense	9,773			14,245			12,935			13,490			14,251
	Tax provision - consolidated	4			281			182			209			36
	Tax provision - unconsolidated entities	4			8			2			1			1
	Depreciation and amortization - consolidated	25,133			30,797			32,044			30,182			31,446
	Depreciation and amortization - unconsolidated entities	2,058			2,005			2,045			2,427			1,904
	Depreciation and amortization - noncontrolling interests	—			—			(6		)	(10		)	—
	Impairment losses	4,151			—			4,826			—			—
	Gain on sale of real estate	(10,837		)	(5,010		)	(5,739		)	(3,698		)	(318		)
	Loss on early extinguishment of debt	—			—			—			31			127
EBITDA		29,259			32,968			33,574			31,396			31,645
Adjustments:
	Costs incurred in connection with listing activities	—			—			—			(27		)	2,562
	Acquisition expenses	—			—			—			26			642
	Non-cash write-off (recoveries) of tenant receivables	777			(11		)	(53		)	557			802
	Severance charges	—			—			493			—			—
	Transition-related stock-based compensation expense (1)	—			—			—			2,837			—
	BHT Advisors termination fee and HPT Management buyout fee	—			—			—			—			101
Normalized EBITDA		30,036			32,957			34,014			34,789			35,752
Adjustments:
	EBITDA from properties disposed before period end	(811		)	(2,418		)	(832		)	25			(42		)
	Full quarter adjustment for acquired properties	—			—			—			—			656
Normalized estimated full period EBITDA from properties owned at period end		$	29,225		$	30,539		$	33,182		$	34,814		$	36,366
Fixed charges
	Interest expense	$	9,773		$	14,245		$	12,935		$	13,490		$	14,251
	Interest rate hedge ineffectiveness expense (2)	1,534			(1,941		)	—			—			—
	Default interest (3)	(619		)	(616		)	(617		)	(625		)	(355		)
	Interest expense related to participating mortgage (4)	—			—			—			(53		)	(660		)
	Capitalized interest incurred (5)	267			249			198			199			119
	Normalized interest expense	10,955			11,937			12,516			13,011			13,355
	Principal payments (excludes debt payoff)	1,436			1,369			1,318			1,776			1,876
Normalized fixed charges		$	12,391		$	13,306		$	13,834		$	14,787		$	15,231
Normalized interest coverage (6)		2.74			2.76			2.72			2.67			2.68
Normalized fixed charge coverage (6)		2.42			2.48			2.46			2.35			2.35

______________________

(1) During the fourth quarter of 2015, we incurred a charge from the acceleration of stock grants related to our transition from an arrears-based equity incentive program to a new, forward-looking, multi-year, long-term equity incentive program.

(2) Interest rate swaps are adjusted to fair value through other comprehensive income (loss). However, because our interest rate swaps do not have a LIBOR floor while the hedged debt is subject to a LIBOR floor, the portion of the change in fair value of our interest rate swaps attributable to this mismatch is reclassified to interest rate hedge ineffectiveness expense.

(3) We have a non-recourse loan in default which subjects us to incur default interest at a rate that is 500 basis points higher than the stated interest rate. Although there can be no assurance, we anticipate that when this property is sold or when ownership of this property is conveyed to the lender, this default interest will be forgiven.

(4) Represents the portion of the Paces West B note that was repaid based on achievement of certain investment return thresholds which is included in interest expense- unconsolidated entities above. Paces West was sold in November 2015.

(5) Excludes capitalized interest funded from construction loans.

(6) Normalized interest coverage is equal to normalized EBITDA divided by normalized interest expense. Normalized fixed charge coverage is equal to normalized EBITDA divided by normalized fixed charges.

For additional information regarding the non-GAAP measures, see pages 30-31.

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 7

Non Wholly-Owned Entities Financial Summary
As of and for the Quarter Ended September 30, 2016
(dollars in thousands)
		Unconsolidated Entities at																		Consolidated Entities at
		TIER REIT Ownership Share																		TIER REIT Ownership Share
		Wanamaker Building			1325 G Street			Colorado Building			Domain 2 & 7			Domain 8						Legacy Land			Third + Shoal
Ownership % during the period		60.00%			10.00%			10.00%			49.84%			50.00%						95.00%			95.00%
Ownership % at period end		60.00%			10.00%			10.00%			49.84%			50.00%			Total			95.00%			95.00%			Total
Results of Operations
Rental income		$	3,881		$	292		$	88		$	1,555		$	—		$	5,816		—			—			—
Straight-line rent and lease incentive revenue		41			45			53			119			—			258			—			—			—
Above- and below-market rent amortization		102			(23		)	(8		)	—			—			71			—			—			—
Other income		35			41			—			—			—			76			—			2			2
	Total revenue	4,059			355			133			1,674			—			6,221			—			2			2
Property related expenses		1,385			68			43			324			20			1,840			3			11			14
Real estate taxes		358			69			26			460			—			913			19			—			19
Property management fees		117			9			3			46			—			175			—			—			—
	NOI	2,199			209			61			844			(20		)	3,293			(22		)	(9		)	(31		)
Interest expense		425			57			20			223			—			725			—			—			—
Amortization of deferred financing costs		20			6			2			26			—			54			—			—			—
Asset management fees		—			3			1			—			—			4			—			—			—
Real estate depreciation and amortization		1,246			174			44			448			—			1,912			—			—			—
Interest income and other expense		5			1			1			—			—			7			—			—			—
Provision for income taxes		1			2			1			—			—			4			—			—			—
	Net income (loss)	502			(34		)	(8		)	147			(20		)	587			(22		)	(9		)	(31		)
Adjustments:
Depreciation of basis adjustments		—			—			—			(146		)	—			(146		)	—			—			—
Above- and below-market amortization of basis adjustment		—			—			—			7			—			7			—			—			—
Eliminate amortization of deferred financing costs		11			—			—			—			—			11			—			—			—
Eliminate property management fees		117			7			3			—			—			127			—			—			—
	Adjusted net income (loss) (1)	630			(27		)	(5		)	8			(20		)	586			(22		)	(9		)	(31		)
Adjustments:
	Real estate depreciation and amortization	1,246			174			44			594			—			2,058			—			—			—
Funds from operations		$	1,876		$	147		$	39		$	602		$	(20	)	$	2,644		$	(22	)	$	(9	)	$	(31	)
Balance Sheet Information
Real estate book value		$	102,846		$	12,853		$	3,939		$	36,278		$	24,522		$	180,438		6,705			17,066			23,771
Accumulated depreciation		(27,200		)	(325		)	(70		)	(2,368		)	—			(29,963		)	—			(331		)	(331		)
Real estate book value after depreciation (2)		$	75,646		$	12,528		$	3,869		$	33,910		$	24,522		$	150,475		$	6,705		$	16,735		$	23,440
Cash and cash equivalents		$	2,351		$	224		$	150		$	1,598		$	1,156		$	5,479		$	4		$	2,055		$	2,059
Assets		$	95,778		$	15,601		$	5,141		$	40,933		$	26,533		$	183,986		$	6,709		$	18,829		$	25,538
Mortgage debt		$	42,853		$	10,059		$	3,605		$	39,872		$	6,961		$	103,350		$	—		$	—		$	—
Company’s equity interest in investment		$	49,680		$	5,161		$	1,378		$	(569	)	$	14,090		$	69,740		$	6,525		$	17,588		$	24,113
Basis differences		(5,451		)	(1,290		)	(608		)	10,732			3,831			7,214			80			(523		)	(443		)
Carrying value of the Company’s investment		$	44,229		$	3,871		$	770		$	10,163		$	17,921		$	76,954		$	6,605		$	17,065		$	23,670
________________________________
Note: Investments in unconsolidated entities consist of our noncontrolling interest in certain properties. Multiplying each financial statement line item by the associated ownership percentage and adding those amounts to consolidated totals may not accurately depict the legal and economic implications of holding a noncontrolling interest in an investee entity.
(1)	Excludes $60K of previously deferred gain recognized in Q3 2016 related to Paces West, a property sold in 2015.
(2)	Third + Shoal real estate book value after depreciation includes $7.6 million for a ground lease intangible.

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 8

Same Store Analysis
(in thousands, except property count and percentages)
	Three Months Ended											Nine Months Ended
Same Store GAAP NOI:	30-Sep-16			30-Sep-15			Favorable/ (Unfavorable)					30-Sep-16			30-Sep-15			Favorable/ (Unfavorable)
Revenues:
Total revenue	$	46,670		$	49,872		$	(3,202	)			$	142,282		$	144,370		$	(2,088	)
Less: Lease termination fees	(264		)	(2,018		)	1,754					(1,337		)	(2,688		)	1,351
	46,406			47,854			(1,448		)	(3.0	)%	140,945			141,682			(737		)	(0.5	)%
Expenses:
Property operating expenses (less tenant improvement demolition costs)	13,259			13,354			95			0.7	%	39,763			39,165			(598		)	(1.5	)%
Real estate taxes	7,212			6,375			(837		)	(13.1	)%	21,350			20,057			(1,293		)	(6.4	)%
Property management fees	129			125			(4		)	(3.2	)%	386			3,077			2,691			87.5	%
Property expenses	20,600			19,854			(746		)	(3.8	)%	61,499			62,299			800			1.3	%
Same Store GAAP NOI - consolidated properties	25,806			28,000			(2,194		)	(7.8	)%	79,446			79,383			63			0.1	%
Same Store GAAP NOI - unconsolidated properties (at ownership %)	2,606			2,541			65			2.6	%	7,883			7,313			570			7.8	%
Same Store GAAP NOI	$	28,412		$	30,541		$	(2,129	)	(7.0	)%	$	87,329		$	86,696		$	633		0.7	%
Same Store Cash NOI:
Same Store GAAP NOI - consolidated properties	$	25,806		$	28,000		$	(2,194	)			$	79,446		$	79,383		$	63
Less:
Straight-line rent revenue adjustment	(112		)	(1,446		)	1,334					(4,048		)	(3,900		)	(148		)
Above- and below-market rent amortization	(775		)	(1,869		)	1,094					(2,606		)	(4,537		)	1,931
Same Store Cash NOI - consolidated properties	24,919			24,685			234			0.9	%	72,792			70,946			1,846			2.6	%
Same Store Cash NOI - unconsolidated properties (at ownership %)	2,395			2,264			131			5.8	%	6,990			6,586			404			6.1	%
Same Store Cash NOI	$	27,314		$	26,949		$	365		1.4	%	$	79,782		$	77,532		$	2,250		2.9	%
Occupancy % at period end (% owned)	90.8		%	92.4		%						90.8		%	92.4		%
Operating properties (1)	20											20
Rentable square feet (% owned)	7,805											7,805
Reconciliation of net loss to Same Store GAAP NOI and Same Store Cash NOI:
Net loss	$	(1,028	)	$	(15,832	)						$	(23,112	)	$	(22,907	)
Adjustments:
Interest expense	9,005			12,765								34,692			44,747
Asset impairment losses	4,151			—								8,977			132
Tenant improvement demolition costs	306			106								445			312
General and administrative	4,460			6,378								14,735			17,171
BHT Advisors termination fee and HPT Management buyout fee	—			101								—			10,301
Tender offer and listing costs	—			2,562								—			5,553
Amortization of restricted shares and units	1,069			505								3,118			1,604
Straight-line rent expense adjustment	—			(67		)						—			(81		)
Acquisition expense	—			644								—			1,459
Real estate depreciation and amortization	25,062			31,217								87,351			92,320
Depreciation and amortization of non-real estate assets	71			229								623			229
Interest and other income	(248		)	(267		)						(866		)	(553		)
Loss on early extinguishment of debt	—			30								—			21,478
Provision for income taxes	4			36								467			1,298
Equity in operations of investments	(646		)	159								(1,884		)	(153		)
Income from discontinued operations	—			(21		)						—			(1,390		)
Gain on sale of discontinued operations	—			(403		)						—			(15,086		)
Gain (loss) on sale of assets	(10,777		)	85								(21,526		)	(44,479		)
Net operating income of non-same store properties	(5,359		)	(8,209		)						(22,237		)	(29,884		)
Lease termination fees	(264		)	(2,018		)						(1,337		)	(2,688		)
Same store GAAP NOI of unconsolidated properties (at ownership %)	2,606			2,541								7,883			7,313
Same Store GAAP NOI	28,412			30,541								87,329			86,696
Straight-line rent revenue adjustment	(112		)	(1,446		)						(4,048		)	(3,900		)
Above- and below-market rent amortization	(775		)	(1,869		)						(2,606		)	(4,537		)
Cash NOI adjustments for unconsolidated properties (at ownership %)	(211		)	(277		)						(893		)	(727		)
Same Store Cash NOI	$	27,314		$	26,949							$	79,782		$	77,532
(1) Excludes properties held for sale and five operating properties (Two BriarLake Plaza, Domain 2, Domain 3, Domain 4, and Domain 7) as we did not own these properties or they were not fully operational during the entirety of the comparable periods.

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 9

Schedule of Properties Owned
as of September 30, 2016
(in thousands, except average effective and estimated market rent $/RSF and percentages)
		Rentable SF  (100%)	Rentable SF  (own %)			Average Effective Rent (own %)		Average Effective Rent $/RSF (own %)		Estimated Market Rent $/RSF (own %)				% Average Effective Rent (own %)
				Occupancy % (own%)								% of NRA (own %)
Property (% owned, if not 100%)	Location
Terrace Office Park	Austin, TX	619	619	92.9	%	$	21,084	$	36.67	$	41.60	6.8	%	9.7	%
Domain 3	Austin, TX	179	179	100.0	%	6,156		$	34.39	$	37.00	2.0	%	2.8	%
Domain 4	Austin, TX	153	153	100.0	%	1,332		$	8.71	$	37.00	1.7	%	0.6	%
Domain 7 (49.84%)	Austin, TX	222	111	100.0	%	4,312		$	38.97	$	41.97	1.2	%	2.0	%
Domain 2 (49.84%)	Austin, TX	115	57	100.0	%	2,350		$	41.01	$	46.40	0.6	%	1.1	%
Austin		1,288	1,119	96.1	%	35,234		$	32.78	$	40.47	12.4	%	16.2	%
5950 Sherry Lane	Dallas, TX	197	197	84.3	%	5,964		$	35.93	$	38.50	2.2	%	2.7	%
Burnett Plaza	Fort Worth, TX	1,025	1,025	86.0	%	15,948		$	18.10	$	23.44	11.3	%	7.3	%
Centreport Office Center	Fort Worth, TX	133	133	100.0	%	2,796		$	21.02	$	23.14	1.5	%	1.3	%
Dallas/Fort Worth		1,355	1,355	87.1	%	24,708		$	20.94	$	25.52	15.0	%	11.4	%
Loop Central	Houston, TX	575	575	83.3	%	11,808		$	24.65	$	26.00	6.4	%	5.4	%
One & Two Eldridge Place	Houston, TX	519	519	91.9	%	15,336		$	32.15	$	36.25	5.7	%	7.1	%
One BriarLake Plaza	Houston, TX	502	502	93.4	%	19,380		$	41.32	$	44.26	5.6	%	8.9	%
Two BriarLake Plaza	Houston, TX	333	333	67.9	%	8,436		$	37.33	$	44.42	3.7	%	3.9	%
Three Eldridge Place	Houston, TX	305	305	80.3	%	9,924		$	40.51	$	40.51	3.4	%	4.6	%
Houston		2,234	2,234	84.9	%	64,884		$	34.22	$	37.17	24.7	%	29.9	%
Bank of America Plaza	Charlotte, NC	891	891	91.2	%	20,196		$	24.84	$	32.50	9.9	%	9.3	%
Charlotte		891	891	91.2	%	20,196		$	24.84	$	32.50	9.9	%	9.3	%
Buena Vista Plaza	Burbank, CA	115	115	99.1	%	4,296		$	37.68	$	42.12	1.3	%	2.0	%
Los Angeles		115	115	99.1	%	4,296		$	37.68	$	42.12	1.3	%	2.0	%
Forum Office Park	Louisville, KY	328	328	96.3	%	5,676		$	17.96	$	18.00	3.6	%	2.6	%
One Oxmoor Place (1)	Louisville, KY	135	135	98.5	%	3,048		$	22.92	$	22.00	1.5	%	1.4	%
Steeplechase Place (1)	Louisville, KY	77	77	80.5	%	1,068		$	17.23	$	17.50	0.9	%	0.5	%
Lakeview (1)	Louisville, KY	76	76	82.9	%	1,272		$	20.19	$	19.25	0.8	%	0.6	%
Hunnington (1)	Louisville, KY	62	62	85.5	%	1,044		$	19.70	$	17.50	0.7	%	0.5	%
Louisville		678	678	92.5	%	12,108		$	19.31	$	18.88	7.5	%	5.6	%
Plaza at MetroCenter	Nashville, TN	361	361	89.2	%	5,664		$	17.59	$	18.75	4.0	%	2.6	%
Nashville		361	361	89.2	%	5,664		$	17.59	$	18.75	4.0	%	2.6	%
Eisenhower I	Tampa, FL	130	130	100.0	%	3,564		$	27.42	$	28.00	1.4	%	1.6	%
Tampa		130	130	100.0	%	3,564		$	27.42	$	28.00	1.4	%	1.6	%
801 Thompson (1)	Rockville, MD	51	51	—	%	—		$	—	$	26.50	0.6	%	—	%
1325 G Street (10%)	Washington, D.C.	307	31	83.9	%	1,391		$	53.29	$	52.00	0.3	%	0.6	%
Colorado Building (10%)	Washington, D.C.	128	13	84.6	%	401		$	35.47	$	54.00	0.1	%	0.2	%
Washington, D.C.		486	95	38.9	%	1,792		$	47.99	$	52.59	1.1	%	0.8	%
Operating office properties in strategic portfolio		7,538	6,978	88.8	%	172,446		$	27.84	$	32.09	77.2	%	79.4	%
500 East Pratt	Baltimore, MD	280	280	93.2	%	8,376		$	32.09	$	32.50	3.1	%	3.9	%
Woodcrest Corporate Center	Cherry Hill, NJ	333	333	99.1	%	8,376		$	25.38	$	21.50	3.7	%	3.9	%
111 Woodcrest	Cherry Hill, NJ	53	53	84.9	%	984		$	21.87	$	16.00	0.6	%	0.5	%
Wanamaker Building (60%)	Philadelphia, PA	1,390	834	98.3	%	14,810		$	18.07	$	20.24	9.2	%	6.8	%
Three Parkway	Philadelphia, PA	561	561	84.0	%	12,072		$	25.63	$	25.50	6.2	%	5.6	%
Other operating office properties		2,617	2,061	93.5	%	44,618		$	23.16	$	23.30	22.8	%	20.6	%
Total operating office properties		10,155	9,039	89.8	%	$	217,064	$	26.73	$	30.01	100.0	%	100.0	%
Non-operating property
Fifth Third Center (2)	Columbus, OH	331	331	68.0	%
Total Properties		10,486	9,370
Development Property
Domain 8 (50%)	Austin, TX	291	146	82.1	%
(1) This property is held for sale as of September 30, 2016.
(2) The non-recourse loan on Fifth Third Center is currently in default and we are working with the lender to dispose of this property on their behalf.
Average effective rent represents 12 times the sum of the monthly contractual amounts for base rent and the pro rata budgeted operating expense reimbursements, as of period end, related to leases in place as of period end, as reduced for free rent and excluding any scheduled future rent increases, as adjusted for our ownership interest.

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 10

Portfolio Analysis
For the Three Months Ended and
as of September 30, 2016
	Number of	Number of	Net Rentable	Commenced		% of		NOI			% of
Metro Area	Properties	Buildings	Area (000's)	% SF Leased		NRA		($000’s)			NOI
Austin, TX	5	8	1,119	96.1	%	12.4	%	$	5,969		18.0	%
Dallas/Fort Worth, TX	3	4	1,355	87.1	%	15.0	%	3,258			9.8	%
Houston, TX	5	8	2,234	84.9	%	24.7	%	9,844			29.7	%
Charlotte, NC	1	1	891	91.2	%	9.9	%	3,831			11.6	%
Los Angeles, CA	1	1	115	99.1	%	1.3	%	769			2.3	%
Louisville, KY	5	8	678	92.5	%	7.5	%	1,774			5.3	%
Nashville, TN	1	3	361	89.2	%	4.0	%	691			2.1	%
Tampa, FL	1	1	130	100.0	%	1.4	%	749			2.3	%
Washington, D.C.	3	3	95	38.9	%	1.1	%	165			0.5	%
Other Markets	5	5	2,061	93.5	%	22.8	%	6,114			18.4	%
Total	30	42	9,039	89.8	%	100.0	%	33,164			100.0	%
Reconciliation to NOI (Consolidated):
Less NOI from Unconsolidated Operating Properties								(3,320		)
Plus NOI from Consolidated Non-Operating Properties (includes all properties sold prior to September 30, 2016)								1,279
NOI (Consolidated) (3)								$	31,123
Notes:
(1) Analysis relates to operating properties owned at the end of the most recent period only.
(2) Amounts reflect TIER REIT’s ownership %.
(3) NOI is a non-GAAP performance measure. A calculation of NOI is presented on Page 2.

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 11

Components of Net Asset Value
(in thousands, except percentages)
				Annualized Three Months Ended
				30-Sep-16
Consolidated total revenue				$	223,992
		Less:
		GAAP rent adjustments		(6,768		)
		Lease termination fees		(1,324		)
				215,900
Consolidated total property operating expenses				(99,500		)
Adjusted cash NOI				116,400
		Adjustments:
		Adjusted cash NOI from unconsolidated real estate assets, at ownership share		12,364
		Adjusted cash NOI from sold properties, at ownership share		(2,968		)
		Adjusted cash NOI from non-stabilized properties, at ownership share (1)		(11,204		)
		Adjusted cash NOI from land and development properties, at ownership share (2)		88
Total adjusted cash NOI at ownership share (3)				$	114,680
				30-Sep-16
Other real estate properties
		Estimated value of non-stabilized real estate properties, at ownership share		$	258,620
		Cost basis of land and development properties, at ownership share (2)		92,455
Total other real estate properties				$	351,075
Other tangible assets
		Cash and cash equivalents		$	51,466
		Restricted cash		8,586
		Accounts receivable, net (excluding $63,321 of straight-line rent receivable)		3,779
		Prepaid expenses and other assets		5,540
Total other tangible assets				$	69,371
Liabilities
		Mortgage debt		$	270,758
		Unsecured term loans and revolving credit facility		575,000
		Accrued and other liabilities		105,925
		Ownership share of unconsolidated mortgage debt		103,350
Total liabilities				$	1,055,033
Total common shares, restricted stock, and restricted stock units outstanding				47,896
(1	)	Non-stabilized properties include:	Economic % SF Leased
			30-Sep-16
		Burnett Plaza	69%
		Two BriarLake Plaza	60%
(2	)	Includes Third + Shoal, Legacy Land, Domain Blocks B, C, D, & G, and Domain 8 development, at ownership share.
(3	)	Comprised of adjusted cash NOI from the following markets: Austin – 17%, Dallas – 4%, Houston – 30%, Charlotte – 13%, Los Angeles – 3%, Louisville – 6%, Nashville – 2%, Tampa – 2%, Washington, D.C. – 1%, Baltimore – 4%, Cherry Hill – 4%, Philadelphia – 12%, Columbus - 2%

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 12

Selected Non-Stabilized Properties
	Property Name Market Sub-Market	Property Type	Rentable Square Feet	Occupancy % at September 30, 2016	Estimated Cash NOI at Stabilization (in thousands)	Estimated Stabilization Date	Description
	Burnett Plaza	Office	1,025,000	86.0%	$13,000	2017	GM Financial has recently leased 116,000 SF that was vacated by a former tenant that is in bankruptcy. There will be outsized free rent at the property, primarily related to this lease, until late 2017.
	Dallas/Fort Worth
	Fort Worth CBD
	Two BriarLake Plaza	Office Development	333,000	67.9%	$8,000	2018	Property operates as a multi-building campus with our One BriarLake Plaza property. Major construction was completed in the third quarter of 2014.
	Houston
	Westchase

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 13

Significant Tenants
September 30, 2016
(In thousands, except percentages and years)
Properties in Strategic Portfolio
	Annualized Gross Rental Revenues		Percentage of Annualized Gross Rental Revenues				Percentage of Square Feet Leased		Weighted Average Remaining Term (Years)
					Square Feet Leased					Moody’s / S&P Credit Rating
Tenant
Amoco	$	12,871	7	%	329		5	%	1.9	A2 / A-
Bank of America	9,204		5	%	409		6	%	2.7	Baa1 / BBB+
Apache Corporation	8,294		4	%	210		3	%	8.1	Baa3 / BBB
Samsung Engineering America Inc.	7,105		4	%	161		3	%	10.2	NR
GM Financial	7,050		4	%	304		5	%	9.3	Ba1 / BBB-
Universal Pegasus International	5,478		3	%	218		4	%	3.6	NR
McDermott, Inc.	5,263		3	%	169		3	%	4.3	B1 / B+
GSA	5,047		3	%	227		4	%	4.6	U.S. Government
Disney Enterprises, Inc.	4,121		2	%	113		2	%	9.4	A2 / A
Blackbaud, Inc.	3,800		2	%	113		2	%	7.0	NR
Accruent, LLC	3,677		2	%	104		2	%	7.9	NR
E.R. Squibb and Sons, LLC	3,553		2	%	130		2	%	7.8	A2 / A+
Vinson & Elkins LLP	3,541		2	%	88		1	%	5.3	NR
SCOR Global Life	3,467		2	%	140		2	%	11.8	NR / AA-
Linebarger Goggan Blair & Sampson, LLP	3,353		2	%	115		2	%	6.2	NR
Total of largest 15 tenants at operating office properties in strategic portfolio	$	85,824	47	%	2,830		46	%	6.0
Total all tenants at operating office properties in strategic portfolio	$	183,562			6,194				5.5
Total Portfolio
	Annualized Gross Rental Revenues		Percentage of Annualized Gross Rental Revenues				Percentage of Square Feet Leased		Weighted Average Remaining Term (Years)
					Square Feet Leased					Moody’s / S&P Credit Rating
Tenant
Amoco	$	12,871	6	%	329		4	%	1.9	A2 / A-
Bank of America	9,204		4	%	409		5	%	2.7	Baa1 / BBB+
GSA	8,579		4	%	400		5	%	4.8	U.S. Government
Apache Corporation	8,294		4	%	210		3	%	8.1	Baa3 / BBB
Samsung Engineering America Inc.	7,105		3	%	161		2	%	10.2	NR
GM Financial	7,050		3	%	304		4	%	9.3	Ba1 / BBB-
Universal Pegasus International	5,478		2	%	218		3	%	3.6	NR
McDermott, Inc.	5,263		2	%	169		2	%	4.3	B1 / B+
Drexel University	4,903		2	%	191		2	%	6.4	NR
Disney Enterprises, Inc.	4,121		2	%	113		1	%	9.4	A2 / A
Blackbaud, Inc.	3,800		2	%	113		1	%	7.0	NR
Xerox Corporation	3,796		2	%	151		2	%	3.9	Baa2 / BBB-
Accruent, LLC	3,677		2	%	104		1	%	7.9	NR
E.R. Squibb and Sons, LLC	3,553		1	%	130		2	%	7.8	A2 / A+
Vinson & Elkins LLP	3,541		1	%	88	��	1	%	5.3	NR
Total of largest 15 tenants	$	91,235	40	%	3,090		38	%	5.6
Total all tenants	$	228,340			8,121				5.7

Notes:

The above tables set forth the company’s 15 largest tenants including subsidiaries for the operating properties as of the date noted above, based upon annualized gross rents plus estimated operating cost recoveries in place at the end of the above noted period.

As annualized rental revenue is not derived from the historical GAAP results, historical results may differ from those set forth above.

Amounts reflect TIER REIT’s ownership %.

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 14

Industry Diversification (by square foot)

As of September 30, 2016

Notes:

The Company’s tenants are classified according to the U.S. Government’s North American Industrial Classification System (NAICS).

Amounts reflect TIER REIT’s ownership %.

“Other” includes ten industry classifications.

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 15

Leasing Activity Summary
For the Three Months Ended
September 30, 2016
		Occupancy								Occupancy			Cash						Straight-lined
	Rentable SF (000’s)	%		SF (000’s)	Activity for the Quarter (SF 000’s)					SF (000’s)	%		Net Rent /SF				% Increase of Cash Net Rent		Net Rent /SF				% Increase of SL Net Rent
Market		30-Jun-16		30-Jun-16	Expiring		Renewals	Expansions	New	30-Sep-16	30-Sep-16		Expiring		Activity				Expiring		Activity
Austin	1,119	95.9	%	1,073	(95	)	13	1	83	1,075	96.1	%	$	18.34	$	23.78	30	%	$	18.15	$	23.93	32	%
Dallas/Fort Worth	1,355	86.9	%	1,178	(76	)	3	51	24	1,180	87.1	%	$	14.63	$	10.27	(30	)%	$	12.52	$	12.39	(1	)%
Houston	2,234	87.4	%	1,952	(65	)	3	—	6	1,896	84.9	%	$	19.64	$	17.98	(8	)%	$	19.33	$	17.53	(9	)%
Charlotte	891	89.7	%	799	(2	)	2	4	10	813	91.2	%	$	13.07	$	22.95	76	%	$	11.86	$	24.44	106	%
Los Angeles	115	99.1	%	114	—		—	—	—	114	99.1	%	$	—	$	—	—	%	$	—	$	—	—	%
Louisville	678	93.5	%	634	(28	)	19	2	—	627	92.5	%	$	12.33	$	11.80	(4	)%	$	13.28	$	13.34	—	%
Nashville	361	93.1	%	336	(14	)	—	—	—	322	89.2	%	$	—	$	—	—	%	$	—	$	—	—	%
Tampa	130	100.0	%	130	—		—	—	—	130	100.0	%	$	—	$	—	—	%	$	—	$	—	—	%
Washington, D.C.	95	38.9	%	37	—		—	—	—	37	38.9	%	$	—	$	—	—	%	$	—	$	—	—	%
Operating office properties in strategic portfolio	6,978	89.6	%	6,253	(280	)	40	58	123	6,194	88.8	%	$	16.13	$	17.58	9	%	$	15.29	$	18.63	22	%
Other operating office properties	2,061	94.5	%	1,947	(62	)	42	—	—	1,927	93.5	%	$	13.30	$	13.03	(2	)%	$	12.72	$	13.86	9	%
Total	9,039	90.7	%	8,200	(342	)	82	58	123	8,121	89.8	%	$	15.68	$	16.85	7	%	$	14.88	$	17.87	20	%
	End of Period												Cash						Straight-lined
		Occupancy								Occupancy			Net Rent /SF				% Increase of Cash Net Rent		Net Rent /SF				% Increase of SL Net Rent
Year-To-Date Summary	NRA (000's)	%		SF (000's)	Expiring		Renewals	Expansions	New	SF (000's)	%		Expiring		Activity				Expiring		Activity
Operating office properties in strategic portfolio
Q1 Activity	7,317	90.3	%	6,606	(414	)	205	58	49	6,504	88.9	%	$	14.17	$	16.14	14	%	$	12.84	$	15.07	17	%
Q2 Activity	7,317	88.9	%	6,504	(139	)	38	35	97	6,535	89.3	%	$	16.50	$	18.27	11	%	$	15.23	$	18.20	20	%
Q3 Activity	6,978	89.6	%	6,253	(280	)	40	58	123	6,194	88.8	%	$	16.13	$	17.58	9	%	$	15.29	$	18.63	22	%
					(833	)	283	151	269				$	15.35	$	17.11	11	%	$	14.19	$	16.95	19	%
Total Portfolio
Q1 Activity	10,419	89.4	%	9,313	(513	)	271	70	121	9,262	88.9	%	$	14.94	$	15.90	6	%	$	13.66	$	15.12	11	%
Q2 Activity	9,378	90.6	%	8,501	(212	)	61	35	97	8,482	90.4	%	$	17.26	$	18.10	5	%	$	15.90	$	18.15	14	%
Q3 Activity	9,039	90.7	%	8,200	(342	)	82	58	123	8,121	89.8	%	$	15.68	$	16.85	7	%	$	14.88	$	17.87	20	%
					(1,067	)	414	163	341				$	15.64	$	16.63	6	%	$	14.48	$	16.54	14	%

Notes:

Analysis relates to operating properties owned at the end of the period and reflects TIER REIT’s ownership %.

Occupancy includes all leases for tenants under lease contracts that have commenced during the period.

Rates for expiring leases relate to the lease previously occupying the specific space for which positive absorption was shown or the current lease rate if it is a first generation lease.

Net Rent is equal to the fixed base rental amount paid under the terms of the lease less any portion used to offset real estate taxes, utility charges, and other operating expenses incurred in connection with the leased space.

Cash Net Rent disregards any free rent periods. Therefore, the rate shown is first full monthly cash rent paid.

The impact of short term temporary leasing activity is excluded from the analysis of % increase of cash net rent and % increase of SL net rent.

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 16

Leasing Rate Activity Summary
For the Three Months Ended
September 30, 2016
	Renewals											Expansions											New
		Cash					Straight-lined						Cash					Straight-lined						Cash					Straight-lined
	SF (000’s)	Net Rent /SF					Net Rent /SF					SF (000’s)	Net Rent /SF					Net Rent /SF					SF (000’s)	Net Rent /SF					Net Rent /SF
Markets		Expiring		Activity			Expiring		Activity				Expiring		Activity			Expiring		Activity				Expiring		Activity			Expiring		Activity
Austin	13	$	18.89	$	25.41		$	16.87	$	26.47		1	$	18.99	$	24.50		$	16.61	$	25.55		83	$	18.23	$	23.51		$	18.34	$	23.51
Dallas/Fort Worth	3	$	16.47	$	21.53		$	16.13	$	21.11		51	$	15.45	$	13.45		$	12.33	$	12.85		24	$	12.52	$	2.31		$	12.37	$	10.41
Houston	3	$	15.48	$	12.44		$	14.54	$	12.44		—	$	—	$	—		$	—	$	—		6	$	21.72	$	20.75		$	21.72	$	20.08
Charlotte	2	$	26.72	$	26.50		$	26.62	$	27.47		4	$	11.07	$	22.59		$	9.37	$	23.92		10	$	10.87	$	22.32		$	9.64	$	23.99
Los Angeles	—	$	—	$	—		$	—	$	—		—	$	—	$	—		$	—	$	—		—	$	—	$	—		$	—	$	—
Louisville	19	$	12.42	$	11.71		$	13.46	$	13.21		2	$	11.20	$	12.84		$	11.20	$	14.91		—	$	—	$	—		$	—	$	—
Nashville	—	$	—	$	—		$	—	$	—		—	$	—	$	—		$	—	$	—		—	$	—	$	—		$	—	$	—
Tampa	—	$	—	$	—		$	—	$	—		—	$	—	$	—		$	—	$	—		—	$	—	$	—		$	—	$	—
Washington, D.C.	—	$	—	$	—		$	—	$	—		—	$	—	$	—		$	—	$	—		—	$	—	$	—		$	—	$	—
Operating office properties in strategic portfolio	40	$	15.77	$	17.69		$	15.51	$	18.77		58	$	15.06	$	14.25		$	12.16	$	13.90		123	$	16.69	$	19.14		$	16.63	$	20.82
Percentage increase (decrease)				12		%			21		%				(5		)%			14		%				15		%			25		%
Other operating office properties	42	$	13.30	$	13.03		$	12.72	$	13.86		—	$	—	$	—		$	—	$	—		—	$	—	$	—		$	—	$	—
Total	82	$	14.51	$	15.30		$	14.08	$	16.25		58	$	15.06	$	14.25		$	12.16	$	13.90		123	$	16.69	$	19.14		$	16.63	$	20.82
Percentage increase (decrease)				5		%			15		%				(5		)%			14		%				15		%			25		%
Year-To-Date Summary:
Operating office properties in strategic portfolio
Q1 Activity	205	$	12.22	$	14.37		$	11.25	$	12.98		58	$	16.04	$	14.02		$	13.00	$	13.48		49	$	20.06	$	26.05		$	19.22	$	25.43
Q2 Activity	38	$	12.53	$	13.90		$	12.10	$	14.29		35	$	20.03	$	19.66		$	17.59	$	17.96		97	$	16.87	$	19.48		$	15.69	$	19.83
Q3 Activity	40	$	15.77	$	17.69		$	15.51	$	18.77		58	$	15.06	$	14.25		$	12.16	$	13.90		123	$	16.69	$	19.14		$	16.63	$	20.82
	283	$	12.76	$	14.78		$	11.97	$	13.97		151	$	16.59	$	15.42		$	13.74	$	14.68		269	$	17.37	$	20.52		$	16.76	$	21.30
Percentage increase (decrease)				16		%			17		%				(7		)%			7		%				18		%			27		%
Total Portfolio
Q1 Activity	271	$	12.65	$	14.30		$	11.75	$	13.34		70	$	15.22	$	13.55		$	12.56	$	12.96		121	$	19.91	$	20.87		$	18.56	$	20.23
Q2 Activity	61	$	16.45	$	15.01		$	15.37	$	15.62		35	$	20.03	$	19.66		$	17.59	$	17.96		97	$	16.87	$	19.48		$	15.69	$	19.83
Q3 Activity	82	$	14.51	$	15.30		$	14.08	$	16.25		58	$	15.06	$	14.25		$	12.16	$	13.90		123	$	16.69	$	19.14		$	16.63	$	20.82
	414	$	13.58	$	14.60		$	12.74	$	14.25		163	$	16.20	$	15.11		$	13.50	$	14.37		341	$	17.88	$	19.85		$	17.05	$	20.33
Percentage increase (decrease)				8		%			12		%				(7		)%			6		%				11		%			19		%
Notes:
Analysis relates to operating properties owned at the end of the period and reflects TIER REIT’s ownership %.
SF includes all leases for tenants under lease contracts that have commenced during the period.
Rates for expiring leases relate to the lease previously occupying the specific space for which positive absorption was shown or the current lease rate if it is a first generation lease.
Net Rent is equal to the fixed base rental amount paid under the terms of the lease less any portion used to offset real estate taxes, utility charges, and other operating expenses incurred in connection with the leased space.
Cash Net Rent disregards any free rent periods. Therefore, the rate shown is first full monthly cash rent paid.
The impact of short term temporary leasing activity is excluded from the analysis of % increase of cash net rent and % increase of SL net rent.

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 17

Lease Expirations
For Four Quarters From October 1, 2016
(In thousands, except per SF data)
	Market	Month to Month		4Q'16		1Q'17		2Q'17		3Q'17		Grand Total
	By Square Foot
	Austin	3		13		—		36		52		104
	Dallas/Fort Worth	—		5		—		28		110		143
	Houston	—		4		30		147		22		203
	Charlotte	—		—		—		18		2		20
	Los Angeles	—		—		—		—		—		—
	Louisville	2		—		16		134		21		173
	Nashville	45		16		—		—		7		68
	Tampa	—		—		—		—		—		—
	Washington, D.C.	—		1		—		—		—		1
	Operating office properties in strategic portfolio	50		39		46		363		214		712
	Other operating office properties	3		12		6		4		33		58
	Total	53		51		52		367		247		770
	By Annualized Expiring Rentals
	Austin	$	—	$	478	$	—	$	1,322	$	1,859	$	3,659
	Dallas/Fort Worth	7		131		—		788		2,518		3,444
	Houston	1		195		973		5,628		570		7,367
	Charlotte	—		—		27		586		64		677
	Los Angeles	13		—		—		—		—		13
	Louisville	49		—		313		2,403		414		3,179
	Nashville	537		292		—		—		145		974
	Tampa	—		—		—		—		—		—
	Washington, D.C.	—		44		1		—		—		45
	Operating office properties in strategic portfolio	607		1,140		1,314		10,727		5,570		19,358
	Other operating office properties	4		333		156		146		813		1,452
	Total	$	611	$	1,473	$	1,470	$	10,873	$	6,383	$	20,810
	By Expiring Rent Per SF
	Austin	$	—	$	38.96	$	—	$	37.09	$	35.95	$	35.57
	Dallas/Fort Worth	$	—	$	24.10	$	—	$	27.21	$	23.00	$	23.94
	Houston	$	—	$	44.39	$	33.13	$	38.46	$	26.79	$	36.59
	Charlotte	$	—	$	—	$	60.72	$	33.28	$	29.26	$	33.44
	Los Angeles	$	—	$	—	$	—	$	—	$	—	$	—
	Louisville	$	21.93	$	—	$	20.22	$	17.84	$	19.04	$	18.26
	Nashville	$	11.82	$	18.75	$	—	$	—	$	19.37	$	14.21
	Tampa	$	—	$	—	$	—	$	—	$	—	$	—
	Washington, D.C.	$	—	$	46.29	$	23.84	$	—	$	—	$	35.27
	Operating office properties in strategic portfolio	$	12.14	$	29.23	$	28.57	$	29.55	$	26.03	$	27.19
	Other operating office properties	$	1.25	$	30.28	$	27.65	$	32.63	$	24.71	$	25.29
	Total	$	11.53	$	28.88	$	28.27	$	29.63	$	25.84	$	27.03
Notes:
Leases with an expiration on the last day of the period are considered leased at the last day of the period (i.e., expiring on the first day of the following period).
Reflects TIER REIT’s ownership %.
Rentals shown above are the contractually obligated annualized base rent charged in the final month prior to lease termination grossed up to include current operating cost recoveries.
2Q’17 excludes $1.1 million of annualized expiring rent related to Wanamaker Building parking management agreement (0 SF leased)

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 18

Lease Expirations
Annually From October 1, 2016
(In thousands, except percentage and per SF data)
	Market	2016			2017			2018			2019			2020			2021			2022			2023			2024			2025			2026+			Grand Total
	By Square Foot
	Austin	16			87			111			101			110			63			157			218			116			3			92			1,075
	Dallas/Fort Worth	5			144			192			100			76			74			31			144			15			—			402			1,180
	Houston	4			209			39			315			287			255			122			68			272			54			270			1,896
	Charlotte	—			21			12			405			15			36			8			81			32			8			195			813
	Los Angeles	—			—			—			4			—			—			—			—			—			—			110			114
	Louisville	2			172			14			115			85			10			30			—			14			169			15			627
	Nashville	61			10			7			—			2			36			14			—			4			22			167			322
	Tampa	—			—			—			—			—			—			—			—			130			—			—			130
	Washington, D.C.	1			—			—			1			3			2			3			5			—			6			16			37
	Operating office properties in strategic portfolio	89			643			375			1,041			578			476			365			516			583			262			1,267			6,194
	As a % of Occupied SF	2		%	11		%	6		%	17		%	9		%	8		%	6		%	8		%	9		%	4		%	20		%	100		%
	As a % of Total NRA	1		%	10		%	6		%	15		%	8		%	7		%	5		%	7		%	8		%	4		%	18		%	89		%
	Other operating office properties	15			87			33			148			414			160			153			289			45			21			561			1,927
	Total	104			730			408			1,189			992			636			518			805			628			283			1,828			8,121
	As a % of Occupied SF	1		%	9		%	5		%	15		%	12		%	8		%	6		%	10		%	8		%	4		%	22		%	100		%
	As a % of Total NRA	1		%	8		%	5		%	13		%	11		%	7		%	6		%	9		%	7		%	3		%	20		%	90		%
	By Annualized Expiring Rentals
	Austin	$	478		$	3,181		$	3,847		$	4,233		$	4,430		$	2,766		$	6,839		$	8,975		$	4,950		$	157		$	4,319		$	44,175
	Dallas/Fort Worth	138			3,420			4,751			2,477			2,866			2,684			711			4,150			407			—			10,873			32,477
	Houston	196			7,450			1,550			12,694			9,454			9,249			3,948			2,757			11,885			1,811			11,120			72,114
	Charlotte	—			703			460			9,422			490			1,339			269			2,943			329			415			6,564			22,934
	Los Angeles	13			—			—			192			—			—			—			—			—			—			5,328			5,533
	Louisville	49			3,130			275			2,427			1,663			221			699			—			309			3,419			375			12,567
	Nashville	829			185			120			—			39			719			286			—			87			522			3,742			6,529
	Tampa	—			—			—			—			—			—			—			—			4,473			—			—			4,473
	Washington, D.C.	44			1			26			78			216			75			339			302			30			336			909			2,356
	Operating office properties in strategic portfolio	1,747			18,070			11,029			31,523			19,158			17,053			13,091			19,127			22,470			6,660			43,230			203,158
	As a % of Total Annualized Expiring Rentals	1		%	9		%	6		%	16		%	9		%	9		%	6		%	9		%	11		%	3		%	21		%	100		%
	Other operating office properties	337			2,744			704			3,874			11,366			4,074			4,486			8,479			1,022			631			9,863			47,580
	Total	$	2,084		$	20,814		$	11,733		$	35,397		$	30,524		$	21,127		$	17,577		$	27,606		$	23,492		$	7,291		$	53,093		$	250,738
	As a % of Total Annualized Expiring Rentals	1		%	9		%	5		%	14		%	12		%	8		%	7		%	11		%	9		%	3		%	21		%	100		%
	By Expiring Rent Per SF
	Austin	$	30.81		$	36.42		$	34.57		$	41.92		$	40.18		$	44.68		$	43.59		$	41.25		$	42.67		$	47.34		$	46.27		$	41.12
	Dallas/Fort Worth	$	25.42		$	23.95		$	24.72		$	24.93		$	37.82		$	36.36		$	23.01		$	28.87		$	27.56		$	—		$	27.09		$	27.52
	Houston	$	44.66		$	35.75		$	39.31		$	40.20		$	32.92		$	36.26		$	32.28		$	40.52		$	43.76		$	33.49		$	41.15		$	38.03
	Charlotte	$	—		$	33.37		$	37.92		$	23.26		$	33.63		$	36.32		$	36.47		$	36.30		$	10.37		$	50.86		$	33.75		$	28.22
	Los Angeles	$	—		$	—		$	—		$	44.64		$	—		$	—		$	—		$	—		$	—		$	—		$	48.47		$	48.44
	Louisville	$	21.93		$	18.21		$	20.53		$	21.16		$	19.65		$	20.90		$	23.05		$	—		$	22.37		$	20.06		$	25.75		$	20.06
	Nashville	$	13.58		$	19.29		$	18.44		$	—		$	19.76		$	19.92		$	20.76		$	—		$	21.04		$	23.29		$	22.45		$	20.26
	Tampa	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	34.39		$	—		$	—		$	34.39
	Washington, D.C.	$	35.63		$	23.84		$	66.30		$	60.10		$	62.85		$	42.20		$	109.70		$	60.13		$	63.79		$	58.81		$	61.01		$	63.04
	Operating office properties in strategic portfolio	$	19.63		$	28.10		$	29.41		$	30.28		$	33.15		$	35.83		$	35.87		$	37.07		$	38.54		$	25.42		$	34.12		$	32.80
	Other operating office properties	$	23.42		$	31.25		$	21.18		$	26.20		$	27.39		$	25.49		$	29.37		$	29.35		$	22.94		$	30.55		$	17.57		$	24.70
	Total	$	20.04		$	28.51		$	28.76		$	29.77		$	30.77		$	33.22		$	33.93		$	34.29		$	37.41		$	25.76		$	29.04		$	30.88
	Notes:
	Leases with an expiration on the last day of the period are considered leased at the last day of the period (i.e., expiring on the first day of the following period).
	Reflects TIER REIT’s ownership %.
	Rentals shown above are the contractually obligated annualized base rent charged in the final month prior to lease termination grossed up to include current operating cost recoveries.
	2017 excludes $1.1 million of annualized expiring rent related to Wanamaker Building parking management agreement (0 SF leased)

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 19

Occupancy Trends
	Rentable SF (000’s)
		Occupancy %
Market	30-Sep-16	30-Sep-16		30-Jun-16		31-Mar-16		31-Dec-15		30-Sep-15
Austin	1,119	96.1	%	95.9	%	94.1	%	94.5	%	94.6	%
Dallas/Fort Worth	1,355	87.1	%	86.9	%	84.1	%	86.4	%	88.2	%
Houston (1)	2,234	84.9	%	87.4	%	86.5	%	87.9	%	93.0	%
Charlotte	891	91.2	%	89.7	%	89.5	%	87.8	%	86.4	%
Los Angeles	115	99.1	%	99.1	%	99.1	%	99.1	%	100.0	%
Louisville	678	92.5	%	93.5	%	94.0	%	95.4	%	95.6	%
Nashville	361	89.2	%	93.1	%	92.0	%	92.8	%	92.8	%
Tampa	130	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Washington, D.C. (2)	95	38.9	%	38.9	%	91.6	%	93.7	%	93.7	%
Operating office properties in strategic portfolio	6,978	88.8	%	89.6	%	89.2	%	90.1	%	91.9	%
Other operating office properties	2,061	93.5	%	94.5	%	96.9	%	95.8	%	94.9	%
Total	9,039	89.8	%	90.7	%	90.9	%	91.4	%	92.6	%
(1) We began including our recently developed Two BriarLake Plaza property, which is 67.9% leased as of September 30, 2016, in the fourth quarter of 2015.
(2) Our 801 Thompson property (51,000 sq ft) was previously 100% occupied by a single tenant and became vacant in the second quarter of 2016.
Notes:
Analysis relates to operating properties owned at the end of the most recent period and reflects TIER REIT’s ownership %.
Occupancy % is as of the last day of the indicated period.

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 20

Leasing Cost Summary
For the Three Months Ended
September 30, 2016
			Weighted Average Leasing Costs
	SF (000’s)	Wtd Avg Term (Yrs)	Per Square Foot						Per Square Foot / Year
Renewal			Comms		TI & Other		Total		Comms		TI & Other		Total
Market
Austin	13	5.4	$	13.51	$	8.87	$	22.38	$	2.50	$	1.64	$	4.14
Dallas/Fort Worth	3	4.3	$	6.67	$	10.00	$	16.67	$	1.42	$	1.82	$	3.23
Houston	3	19.5	$	—	$	73.03	$	73.03	$	—	$	3.75	$	3.75
Charlotte	2	4.2	$	4.79	$	20.00	$	24.79	$	1.14	$	4.76	$	5.90
Los Angeles	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Louisville	19	7.3	$	2.28	$	0.02	$	2.30	$	0.31	$	—	$	0.32
Nashville	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Tampa	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Washington, D.C.	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Operating office properties in strategic portfolio	40	7.2	$	6.21	$	10.12	$	16.33	$	0.86	$	1.40	$	2.26
Other operating office properties	42	2.8	$	1.49	$	3.91	$	5.40	$	0.53	$	1.38	$	1.91
Total	82	5.0	$	3.80	$	6.94	$	10.74	$	0.76	$	1.40	$	2.16
Expansion
Market
Austin	1	6.3	$	15.69	$	18.44	$	34.13	$	2.49	$	2.93	$	5.42
Dallas/Fort Worth	51	9.8	$	14.21	$	16.13	$	30.34	$	1.45	$	1.65	$	3.10
Houston	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Charlotte	4	5.1	$	11.37	$	49.60	$	60.97	$	2.23	$	9.73	$	11.95
Los Angeles	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Louisville	2	10.0	$	14.36	$	49.71	$	64.07	$	1.44	$	4.97	$	6.41
Nashville	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Tampa	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Washington, D.C.	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Operating office properties in strategic portfolio	58	9.4	$	14.04	$	19.64	$	33.68	$	1.49	$	2.08	$	3.57
Other operating office properties	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Total	58	9.4	$	14.04	$	19.64	$	33.68	$	1.49	$	2.08	$	3.57
New
Market
Austin	83	7.9	$	16.54	$	32.70	$	49.24	$	2.11	$	4.32	$	6.43
Dallas/Fort Worth	24	5.0	$	7.23	$	3.49	$	10.72	$	1.43	$	0.70	$	2.13
Houston	6	5.4	$	10.81	$	20.06	$	30.87	$	2.00	$	3.71	$	5.72
Charlotte	10	5.0	$	10.43	$	52.22	$	62.65	$	2.09	$	10.44	$	12.53
Los Angeles	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Louisville	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Nashville	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Tampa	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Washington, D.C.	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Operating office properties in strategic portfolio	123	7.0	$	13.95	$	27.97	$	41.92	$	2.00	$	4.00	$	6.00
Other operating office properties	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Total	123	7.0	$	13.95	$	27.97	$	41.92	$	2.00	$	4.00	$	6.00
Notes:
Analysis relates to operating properties owned at the end of the period and reflects TIER REIT’s ownership %.

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 21

Leasing Cost Trend Analysis
	Three Months Ended		Three Months Ended		Three Months Ended		Year to Date		Year Ended		Year Ended
	30-Sep-16		30-Jun-16		31-Mar-16		30-Sep-16		31-Dec-15		31-Dec-14
Renewal Leasing
Square Feet (in thousands)	82		61		271		414		1,052		1,298
Weighted Average Term (in years)	5.0		4.5		2.9		3.5		6.8		5.7
Commissions per SF	$	3.80	$	5.97	$	3.48	$	3.91	$	7.13	$	4.68
TI and Other Leasing Cost per SF	6.94		13.11		6.76		7.73		18.72		4.62
Total Leasing Cost per SF	$	10.74	$	19.08	$	10.24	$	11.64	$	25.85	$	9.30
Commissions per SF per Year	$	0.76	$	1.31	$	1.18	$	1.12	$	1.07	$	0.93
TI and Other Leasing Cost per SF per Year	1.40		2.89		2.31		2.21		2.70		0.74
Total Leasing Cost per SF per Year	$	2.16	$	4.20	$	3.49	$	3.33	$	3.77	$	1.67
Expansion Leasing
Square Feet (in thousands)	58		35		70		163		246		264
Weighted Average Term (in years)	9.4		3.5		8.2		7.6		6.3		6.6
Commissions per SF	$	14.04	$	6.72	$	12.87	$	11.97	$	8.73	$	9.41
TI and Other Leasing Cost per SF	19.64		10.36		7.39		12.38		24.07		21.39
Total Leasing Cost per SF	$	33.68	$	17.08	$	20.26	$	24.35	$	32.80	$	30.80
Commissions per SF per Year	$	1.49	$	1.94	$	1.56	$	1.62	$	1.41	$	1.41
TI and Other Leasing Cost per SF per Year	2.08		3.00		0.90		1.77		3.91		3.11
Total Leasing Cost per SF per Year	$	3.57	$	4.94	$	2.46	$	3.39	$	5.32	$	4.52
New Leasing
Square Feet (in thousands)	123		97		121		341		480		927
Weighted Average Term (in years)	7.0		6.3		7.3		6.9		8.0		8.4
Commissions per SF	$	13.95	$	12.42	$	10.90	$	12.43	$	12.91	$	12.15
TI and Other Leasing Cost per SF	27.97		25.63		26.74		26.87		40.55		36.28
Total Leasing Cost per SF	$	41.92	$	38.05	$	37.64	$	39.30	$	53.46	$	48.43
Commissions per SF per Year	$	2.00	$	1.97	$	1.50	$	1.81	$	1.60	$	1.45
TI and Other Leasing Cost per SF per Year	4.00		4.06		3.68		3.91		5.05		4.34
Total Leasing Cost per SF per Year	$	6.00	$	6.03	$	5.18	$	5.72	$	6.65	$	5.79
Total Leasing
Square Feet (in thousands)	263		193		462		918		1,778		2,489
Weighted Average Term (in years)	6.9		5.2		4.9		5.5		7.1		6.8
Commissions per SF	$	10.80	$	9.35	$	6.85	$	8.50	$	8.92	$	7.96
TI and Other Leasing Cost per SF	19.58		18.90		12.09		15.67		25.35		18.19
Total Leasing Cost per SF	$	30.38	$	28.25	$	18.94	$	24.17	$	34.27	$	26.15
Commissions per SF per Year	$	1.56	$	1.79	$	1.41	$	1.54	$	1.26	$	1.18
TI and Other Leasing Cost per SF per Year	2.84		3.61		2.48		2.84		3.50		2.33
Total Leasing Cost per SF per Year	$	4.40	$	5.40	$	3.89	$	4.38	$	4.76	$	3.51
Notes:
Analysis relates to operating properties owned at the end of the indicated period and reflects TIER REIT’s ownership %.

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 22

	Development, Leasing, and
	Capital Expenditures Summary
	(in thousands)
		For the Three Months Ended
		30-Sep-16		30-Jun-16		31-Mar-16		31-Dec-15		30-Sep-15
	Recurring capital expenditures
	Leasing costs	$	4,636	$	8,119	$	7,168	$	8,297	$	10,046
	Building improvements	620		3,256		2,185		2,816		3,749
	Subtotal recurring capital expenditures	5,256		11,375		9,353		11,113		13,795
	Non-recurring capital expenditures
	Building improvements (1)	152		596		600		1,185		—
	Leasing costs (2)	1,268		3,240		3,547		3,258		1,907
	Development (3)	11,425		17,180		1,409		1,790		3,278
	Redevelopment (4)	5,940		4,424		1,028		298		13
	Subtotal non-recurring capital expenditures	18,785		25,440		6,584		6,531		5,198
	Total capital expenditures	$	24,041	$	36,815	$	15,937	$	17,644	$	18,993
Notes:
All amounts represent TIER REIT’s ownership %.
Beginning in 2016, leasing costs reimbursed to us by tenants when tenant improvement allowances have been exceeded are excluded from the above amounts.
(1)	Non-recurring building improvements include costs identified as deferred capital needs at the acquisition of a property.
(2)	Non-recurring leasing costs include costs incurred within 12 months of acquisition to lease space and costs incurred to lease space that has been vacant for at least 12 months. Cost incurred within 12 months of acquisition to lease space were as follows:
		$	632	$	1,814	$	992	$	455	$	534
(3)	Development includes all new construction costs related to base building and all costs associated with leasing development projects.
(4)	Redevelopment costs are for capital projects where substantial improvements are made to the property that change the character of the asset and are expected to result in development type returns on capital.

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 23

Potential Future Development Sites
September 30, 2016
			Approximate Rentable Square Feet
				Month of Acquisition	Cost Basis (in millions)
Project	Market (submarket)	Acres					Comments
Burnett Plaza	Fort Worth (CBD)	1.4	N/A	Jan-07	$	3.3	Planned mixed-use development and garage for use at Burnett Plaza
Eisenhower II	Tampa	5.2	130,000	Dec-07	$	1.7	Office building
Third + Shoal (95%) (1)	Austin (CBD)	0.8	325,000	Jun-15	$	17.1	Office building
Legacy Land (95%) (1)	Dallas (Plano - Legacy)	4.0	570,000	Jun-15	$	7.1	Office building(s)
Domain B	Austin (Domain)	6.2	300,000-400,000	Jul-15	$	12.7	Office building(s)
Domain C	Austin (Domain)	6.3	400,000-500,000	Jul-15	$	18.0	Office building(s)
Domain D & G	Austin (Domain)	5.6	300,000-400,000	Jul-15	$	9.5	Office building
(1) We own 95% of this project, and the cost basis above represents 100%.

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 24

Summary Development Activity
September 30, 2016
				Start Date		Estimated Cost per SF
		Square feet (in thousands)			Shell Completion Date			Estimated Total Cost (in millions) (2) (4)		Cost to Date (in millions) (2)
Project	Market		% Leased (1)
Domain 8 (3)	Austin	291	82%	3Q’15	1Q’17	$	306	$	89.1	$	50.7
(1) Percentage leased increased to 94% subsequent to September 30, 2016.
(2) Excludes basis adjustment of $3.8 million to date and $4.9 million estimated in total.
(3) We own 50% of this project, and the cost above represents 100%.
(4) Cost estimate increased from prior quarter estimate due to signing longer term leases at higher rates than anticipated.

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 25

Properties Under Development

Domain 8

Austin, Texas

Property Description

Domain 8 is currently under development as a 12-story, Class A office building located within The Domain in Austin, Texas.  When completed in first quarter 2017, it will offer 291,000 square feet of single-floor and multi-tenant arrangements with dramatic views of the surrounding Domain community and Texas Hill Country.  Domain 8 was designed to achieve a minimum LEED Silver and Energy Star designations.

Property Highlights

The Domain is the epitome of upscale “live, work, play”, spread across 300 acres in Northwest Austin.  The community currently includes 1.7 million square feet of office space that commands the highest Class A office rents in Austin outside the city’s CBD.  In addition to office space, The Domain offers up to 4,000 apartment units, 1.8 million square feet of retail and 775 hotel rooms. Nestled among a full array of amenities and hike & bike trails, Domain 8 will offer onsite showers and locker room and direct elevator access to office floors from every garage level.   

Property Facts

Submarket	The Domain
Floors	9 Floors Office Space/3 Floors Parking
Approximate Rentable SF	291,000
Estimated Operating Expenses per SF	$14.85
Estimated Shell Delivery Date	1Q’17
Estimated Project Cost at Completion (1) (2)	$89,100,000
Percentage Owned	50	%
Percentage Leased	94	%
(1) Excludes $4.9 million basis adjustment.
(2) Cost estimate increased from prior quarter estimate due to the signing of longer term leases at higher rates than anticipated.

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 26

Acquisition and Disposition Activities
For the Twelve Months Ended September 30, 2016
		Number of Properties	Square Feet (in thousands)	Transaction Date	Price (in thousands)
Acquisitions	Location
Domain K (multifamily property)	Austin, TX	N/A	N/A	10/16/2015	$	15,000
Dispositions
Domain K (multi-family property)	Austin, TX	N/A	N/A	10/16/2015	$	15,000
Paces West (10%)	Atlanta, GA	1	65	11/30/2015	$	11,250
Domain A (land)	Austin, TX	N/A	N/A	12/16/2015	$	4,250
Lawson Commons	St. Paul, MN	1	436	3/1/2016	$	68,430
FOUR40 (1)	Chicago, IL	1	1,041	6/17/2016	$	191,000
Hurstbourne Business Center	Louisville, KY	3	418	9/30/2016	$	41,000
		6	1,960
(1) The Company is entitled to an additional payment of up to $12.5 million subject to future performance of this property.

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 27

Summary of Financing
September 30, 2016
(in thousands, except percentages and number of years)
					Principal			Weighted Average Effective Interest Rate	% of Total
Fixed Rate Debt
Secured mortgage debt					$	270,758		5.95%	32%
Unsecured term loans (1)					525,000			3.46%	62%
Total fixed rate debt					795,758			4.31%	94%
Variable Rate Debt
Unsecured term loan (1)					50,000			2.05%	6%
Unsecured revolving credit facility (2)					—			—	—
Total variable rate debt					50,000			2.05%	6%
Total debt (3)					845,758			4.17%	100%
unamortized debt issuance costs (4)					(7,838		)
Total notes payable, net					$	837,920
(1) The borrowing rate under $525.0 million of the term loans has been effectively fixed through the use of interest rate hedges. The remaining portion is variable rate.
(2) Additional borrowings of $137.3 million were available under the credit facility.
(3) As of September 30, 2016, we had a non-recourse loan in default which subjects us to incur default interest at a rate that is 500 basis points higher than the stated interest rate which results in an overall effective weighted average interest rate of 4.46%.
(4) Excludes $2.7 million of unamortized debt issuance costs associated with the revolving line of credit because those costs are presented as an asset on our consolidated balance sheet.
	Maturities
	Secured Mortgage Debt				Unsecured Revolving Credit Facility and Term Loans				Total				Annual % Maturing
	Principal			Rate (1)	Principal			Rate (1)	Principal			Rate (1)
2016	$	48,315		6.17%	$	—		—	$	48,315		6.17%	6%
2017	128,803			5.55%	—			—	128,803			5.55%	15%
2018	—			—	—			—	—			—	—
2019	—			—	300,000			3.03%	300,000			3.03%	35%
2020	—			—	—			—	—			—	—
Thereafter	93,640			6.38%	275,000			3.67%	368,640			4.36%	44%
Total debt	$	270,758			$	575,000			845,758			4.17%
unamortized debt issuance costs									(7,838		)
Total notes payable, net									837,920
Weighted average maturity in years	1.9				4.4				3.6
(1) Represents weighted average effective interest rate for debt maturing in this period.
	Maturities
	Consolidated Debt				Our share of unconsolidated debt				Total				Annual % Maturing
	Principal			Rate (1)	Principal			Rate (1)	Principal			Rate (1)
2016	$	48,315		6.17%	$	—		—	$	48,315		6.17%	5%
2017	128,803			5.55%	—			—	128,803			5.55%	14%
2018	—			—	6,961			2.62%	6,961			2.62%	1%
2019	300,000			3.03%	39,872			2.21%	339,872			2.94%	36%
2020	—			—	13,664			2.30%	13,664			2.30%	1%
Thereafter	368,640			4.36%	42,853			3.88%	411,493			4.31%	43%
Total debt	845,758				103,350				949,108			4.04%
unamortized debt issuance costs	(7,838		)		(1,121		)		(8,959		)
Total notes payable, net	$	837,920			$	102,229			$	940,149
Weighted average maturity in years	3.6				4.3				3.7
(1) Represents weighted average effective interest rate for debt maturing in this period.
Hedging Details:
Type/Description	Notional Value			Index	Strike Rate			Effective Date	Maturity Date			Loan Designation
Interest rate swap - cash flow hedge	$	125,000		one-month LIBOR	1.6775%			31-Dec-14	31-Oct-19			Credit Facility
Interest rate swap - cash flow hedge	$	125,000		one-month LIBOR	1.6935%			30-Apr-15	31-Oct-19			Credit Facility
Interest rate swap - cash flow hedge	$	125,000		one-month LIBOR	1.7615%			30-Jun-15	31-May-22			Credit Facility
Interest rate swap - cash flow hedge	$	150,000		one-month LIBOR	1.7695%			30-Jun-15	31-May-22			Credit Facility

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 28

	Principal Payments by Year
	as of September 30, 2016
	(in thousands, except percentages)
			Stated Interest Rate		Effective Interest Rate
		Maturity					Total			2016			2017			2018			2019			2020			Thereafter
Fifth Third Center		1-Jul-16	6.09	%	6.17	%	$	48,315		$	48,315		$	—		$	—		$	—		$	—		$	—
One & Two Eldridge Place (1)		11-Jan-17	5.41	%	5.49	%	70,003			309			69,694			—			—			—			—
500 E. Pratt		1-May-17	5.55	%	5.63	%	58,800			—			58,800			—			—			—			—
Unsecured - Revolving Line of Credit		18-Dec-18	—		—		—			—			—			—			—			—			—
Unsecured - Term Loan		18-Dec-19	2.99	%	3.03	%	300,000			—			—			—			300,000			—			—
One BriarLake Plaza - mezzanine		1-Aug-21	9.80	%	9.94	%	14,601			34			110			121			134			144			14,058
One BriarLake Plaza		1-Aug-21	5.65	%	5.72	%	79,039			446			1,417			1,501			1,589			1,670			72,416
Unsecured - Term Loan		30-Jun-22	3.62	%	3.67	%	275,000			—			—			—			—			—			275,000
Total			4.12	%	4.17	%	845,758			$	49,104		$	130,021		$	1,622		$	301,723		$	1,814		$	361,474
unamortized debt issuance costs (2)							(7,838		)
Consolidated notes payable, net							$	837,920
Notes associated with investments in unconsolidated entities and excluded from the consolidated balance above (at ownership share):
Wanamaker Building - office (60%)		7-Feb-23	3.83	%	3.88	%	42,853			230			937			974			1,013			1,049			38,650
1325 G Street (10%)		30-Jun-20	2.27	%	2.30	%	10,059			—			—			—			—			10,059			—
Colorado Building (10%)		30-Jun-20	2.27	%	2.30	%	3,605			—			—			—			—			3,605			—
Domain 2 & 7 (49.84%)		28-Apr-19	2.18	%	2.21	%	39,872			—			—			—			39,872			—			—
Domain 8 (50%)		28-Aug-18	2.58	%	2.62	%	6,961			—			—			6,961			—			—			—
Total			2.90	%	2.94	%	103,350			$	230		$	937		$	7,935		$	40,885		$	14,713		$	38,650
unamortized debt issuance costs							(1,121		)
Total unconsolidated notes payable, net							$	102,229
Total notes payable			3.98	%	4.04	%	949,108			$	49,334		$	130,958		$	9,557		$	342,608		$	16,527		$	400,124
unamortized debt issuance costs							(8,959		)
Total notes payable, net							$	940,149
% of principal payments due by year							100		%	5		%	14		%	1		%	36		%	2		%	42		%
(1)	This loan was paid off subsequent to quarter end.
(2)	Excludes $2.7 million of unamortized debt issuance costs associated with the revolving line of credit because those costs are presented as an asset on our consolidated balance sheet.

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 29

Definitions of Non-GAAP Financial Measures

We use non-GAAP financial measures in our public filings and other public disclosures. These non-GAAP financial measures are defined below.

Funds from Operations (FFO)

Historical cost accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate diminishes predictably over time.  Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered the presentation of operating results for real estate companies that use historical cost accounting alone to be insufficient for evaluating operating performance.  FFO is a non-GAAP financial measure that is widely recognized as a measure of a REIT’s operating performance.  We use FFO as defined by the National Association of Real Estate Investment Trusts (NAREIT) in the April 2002 “White Paper on Funds From Operations” which is net income (loss), computed in accordance with GAAP, excluding extraordinary items, as defined by GAAP, gains (or losses) from sales of property and impairments of depreciable real estate (including impairments of investments in unconsolidated entities which resulted from measurable decreases in the fair value of the depreciable real estate held by the unconsolidated entity), plus depreciation and amortization of real estate assets, and after related adjustments for unconsolidated entities and noncontrolling interests.  The determination of whether impairment charges have been incurred is based partly on anticipated operating performance and hold periods.  Estimated undiscounted cash flows from a property, derived from estimated future net rental and lease revenues, net proceeds on the sale of the property, and certain other ancillary cash flows, are taken into account in determining whether an impairment charge has been incurred.  While impairment charges for depreciable real estate are excluded from net income (loss) in the calculation of FFO as described above, impairments reflect a decline in the value of the applicable property which we may not recover.

We believe that the use of FFO, together with the required GAAP presentations, is helpful in understanding our operating performance because it excludes real estate-related depreciation and amortization, gains and losses from property dispositions, impairments of depreciable real estate assets, and extraordinary items, and as a result, when compared period to period, reflects the impact on operations from trends in occupancy rates, rental rates, operating costs, development activities, general and administrative expenses, and interest costs, which are not immediately apparent from net income.  Factors that impact FFO include fixed costs, yields on cash held in accounts, income from portfolio properties and other portfolio assets, interest rates on debt financing, and operating expenses.

We also evaluate FFO, excluding certain items. The items excluded relate to certain non-operating activities or certain non-recurring activities that may create significant FFO volatility. We believe it is useful to evaluate FFO excluding these items because it provides useful information in analyzing comparability between reporting periods and in assessing the sustainability of our operating performance.

FFO and FFO, excluding certain items, should not be considered as alternatives to net income (loss), or as indicators of our liquidity, nor are they indicative of funds available to fund our cash needs, including our ability to make distributions.  Additionally, the exclusion of impairments limits the usefulness of FFO and FFO, excluding certain items, as historical operating performance measures since an impairment charge indicates that operating performance has been permanently affected.  FFO and FFO, excluding certain items, are not useful measures in evaluating net asset value because impairments are taken into account in determining net asset value but not in determining FFO and FFO, excluding certain items.  FFO and FFO, excluding certain items, are non-GAAP measurements and should be reviewed in connection with other GAAP measurements.  Our FFO and FFO, excluding certain items, as presented may not be comparable to amounts calculated by other REITs that do not define FFO in accordance with the current NAREIT definition, or interpret it differently, or that identify and exclude different items related to non-operating activities or certain non-recurring activities.

Net Operating Income (NOI)

NOI is a non-GAAP financial measure equal to rental revenue, less property operating expenses, real estate taxes, and property management expenses.   Our management uses NOI internally as a performance measure and believes NOI is useful to investors as a performance measure because NOI reflects only those income and expense items that are incurred at the property level and is therefore a useful measure for evaluating a property’s performance. Using NOI on a comparative basis allows investors to evaluate property level performance to compare the operating performance of our properties in a given market with the operating performance of other real estate companies in the same market, and consequently allocate their own investment capital accordingly.

Further, we use NOI internally as a performance measure and believe NOI is useful to investors as a performance measure because, when compared year over year, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating costs, acquisition and development activities, and general and administrative expenses on an un-leveraged basis, providing perspective not immediately apparent from net income. NOI excludes certain components from net income in order to provide results that are more closely related to a property’s results of operations. Certain items such as interest expense, while included in net income, do not affect the operating performance of a real estate asset and are often incurred at the corporate level as opposed to the property level. In addition, it is useful to our management and investors that depreciation and amortization are excluded from NOI because historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time, and, instead, real estate values have historically risen or fallen with market conditions.

NOI presented by us may not be comparable to NOI reported by other REITs that do not define NOI exactly as we do. We believe that in order to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income as presented in our consolidated financial statements and notes thereto. NOI should not be considered as an alternative to net income as an indication of our performance or to cash flows as a measure of liquidity or our ability to make distributions.

Same Store GAAP NOI and Same Store Cash NOI

Same Store GAAP NOI is equal to rental revenue, less lease termination fee income, property operating expenses (excluding tenant improvement demolition costs), real estate taxes, and property management expenses for our same store properties and is considered a non-GAAP financial measure. Same Store Cash NOI is equal to Same Store GAAP NOI less non-cash revenue items including straight-line rent adjustments and the amortization of above- and below-market rent. The same store properties include our operating office properties not held for sale and owned and operated for the entirety of both periods being compared and include our comparable ownership percentage in each period for properties in which we own an unconsolidated interest.  We view Same Store GAAP NOI and Same Store Cash NOI as important measures of the operating performance of our properties because they allow us to compare operating results of properties owned and operated for the entirety of both periods being compared and therefore eliminate variations caused by acquisitions or dispositions during such periods.

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 30

Same Store GAAP NOI and Same Store Cash NOI presented by us may not be comparable to Same Store GAAP NOI or Same Store Cash NOI reported by other REITs that do not define Same Store GAAP NOI or Same Store Cash NOI exactly as we do. We believe that in order to facilitate a clear understanding of our operating results, Same Store GAAP NOI and Same Store Cash NOI should be examined in conjunction with net income (loss) as presented in our consolidated financial statements and notes thereto. Same Store GAAP NOI and Same Store Cash NOI should not be considered as an indicator of our ability to make distributions, as alternatives to net income (loss) as an indication of our performance, or as a measure of cash flows or liquidity.

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)

EBITDA, a non-GAAP financial measure, is defined as net income (loss), plus interest expense, income tax expense, and depreciation and amortization expense, and after related adjustments for unconsolidated partnerships, joint ventures and subsidiaries, and noncontrolling interests. EBITDA is not intended to represent cash flow for the period, is not presented as an alternative to operating income as an indicator of operating performance, should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP, and is not indicative of operating income or cash provided by operating activities as determined under GAAP. EBITDA is presented solely as a supplemental disclosure with respect to liquidity because we believe it provides useful information regarding our ability to service or incur debt.

We also evaluate Normalized EBITDA, which is EBITDA excluding certain revenues and operating expenses. The items excluded relate to certain non-operating activities or certain non-recurring activities that create significant EBITDA volatility. Further, we evaluate Normalized Estimated Full Period EBITDA, which is EBITDA excluding certain revenues and operating expenses and adjusted to show the pro forma impact of properties that were either acquired or disposed during the period. We believe it is useful to evaluate EBITDA excluding these items and as adjusted for property acquisitions and dispositions because it provides useful information in analyzing comparability between reporting periods and in assessing the sustainability of our operating performance.

Supplemental Operating and Financial Data TIER REIT 3rd Quarter Page 31