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, 2017

About the Company

TIER REIT, Inc. is a publicly traded (NYSE: TIER), self-managed, Dallas-based real estate investment trust focused on owning quality, well-managed commercial office properties in dynamic markets throughout the U.S. TIER REIT’s vision is to be the premier owner and operator of best-in-class office properties in TIER1 submarkets, which are primarily higher density and amenity-rich locations within select, high-growth metropolitan areas that offer a walkable experience to various amenities. Our mission is to provide unparalleled, TIER ONE Property Services to our tenants and outsized total return through stock price appreciation and dividend growth to our stockholders.

As of September 30, 2017, we owned interests in 20 operating office properties with approximately 7.4 million rentable square feet, one non-operating property with approximately 331,000 rentable square feet, and two development properties that will consist of approximately 669,000 rentable square feet. As of September 30, 2017, our properties are located in eight 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
R. Kent Griffin, Jr.	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	Executive Vice President - Capital Markets
Gregory J. Whyte	R. Heath Johnson
Independent Director	Managing Director - Asset Management
	Dean R. Hook
	Senior Vice President - Information Technology and Property Management

Company Information
Corporate Headquarters	Website	Trading Information	Investor inquiries should be directed to:
5950 Sherry Lane, Suite 700	www.tierreit.com	Trading Symbol: TIER	Scott A. McLaughlin
Dallas, Texas 75225		New York Stock Exchange	Senior Vice President - Investor Relations
			at 972.483.2400 or
			ir@tierreit.com
Research Coverage
BMO Capital	Janney Montgomery Scott LLC	JMP Securities	J.P. Morgan Securities
John Kim	Robert Stevenson	Mitch Germain	Anthony Paolone
212.885.4115	646.840.3217	212.906.3546	212.622.6682

Supplemental Operating and Financial Data

For the Quarter Ended September 30, 2017

Table of Contents

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

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 acquire or 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,” “opportunities,” “goals,” “vision,” “mission,” 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, 2016. 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, 2017

Property Results

• Occupancy at September 30, 2017, was 88.3%, a decrease of 20 basis points from June 30, 2017.

• 595,000 square feet leased - 515,000 square feet of renewals and 80,000 square feet of new leasing.

• During the third quarter of 2017, One & Two Eldridge Place and Three Eldridge Place (collectively known as the “Eldridge Properties”), located in Houston, Texas, experienced flood-related damage as a result of Hurricane Harvey and its aftermath. Rent abatements of approximately $1.9 million were provided to tenants at the Eldridge Properties during the third quarter of 2017 because the properties were inaccessible for a portion of the quarter. We expect these losses to be recovered from insurance proceeds in subsequent quarters.

Real Estate Activity

• Domain 8, a property in which we own a 50.0% interest, became fully operational during the third quarter of 2017. Domain 8 is located in Austin, Texas, and contains 291,000 rentable square feet.

• Domain 11, our development property located in Austin, Texas, broke ground during the third quarter of 2017. Domain 11 is expected to contain 324,000 rentable square feet when completed in late 2018.

• During the third quarter of 2017, 67% of our Third+Shoal property was leased to Facebook, Inc. Third+Shoal is a development property in which we own a 47.5% interest.

• During the third quarter of 2017, Bank of America commenced a 21-month lease extension for 295,000 square feet that expires on December 31, 2020 at our Bank of America Plaza property located in Charlotte, North Carolina.

Capital Markets Activity

• On August 2, 2017, our board of directors authorized a distribution of $0.18 per share of common stock for the third quarter of 2017, which was paid on September 29, 2017.

Subsequent Events

• On October 27, 2017, a construction loan secured by Third+Shoal was entered into with available borrowings of up to $103.8 million (at 100%). The loan is scheduled to mature in October 2021, with two one-year extension options, subject to certain conditions and an extension fee, and has a stated variable annual interest rate that as of October 27, 2017, was 4.74%.

• On November 3, 2017, our board of directors authorized a distribution of $0.18 per share of common stock for the fourth quarter of 2017, which will be paid on December 29, 2017.

Supplemental Operating and Financial Data 3Q’17 Page 1

Financial Highlights
(in thousands, except per share data, effective rent data, percentages, and number of properties)
	30-Sep-17			30-Sep-16			30-Sep-17			30-Jun-17			31-Mar-17			31-Dec-16			30-Sep-16
Portfolio Summary:
Total operating office properties	20			30			20			19			25			29			30
Rentable square feet (100%) (operating properties)	7,405			10,155			7,405			7,114			7,908			10,104			10,155
Rentable square feet (own %) (operating properties)	7,260			9,039			7,260			7,114			7,517			8,988			9,039
Occupancy %	88.3		%	89.8		%	88.3		%	88.5		%	90.2		%	90.7		%	89.8		%
Executed % SF leased	89.0		%	90.2		%	89.0		%	89.1		%	90.9		%	91.0		%	90.2		%
Economic % SF leased	82.4		%	85.6		%	82.4		%	80.3		%	83.2		%	87.1		%	85.6		%
Average effective rent/square foot	$	29.58		$	26.73		$	29.58		$	29.12		$	28.49		$	27.19		$	26.73
	Nine Months Ended						Three Months Ended
	30-Sep-17			30-Sep-16			30-Sep-17			30-Jun-17			31-Mar-17			31-Dec-16			30-Sep-16
Financial Results:
Revenue	$	161,835		$	188,743		$	50,920		$	54,552		$	56,363		$	54,075		$	55,998
Property related expenses	(41,790		)	(56,605		)	(13,170		)	(13,930		)	(14,690		)	(15,998		)	(16,315		)
Real estate taxes	(25,752		)	(28,843		)	(8,439		)	(8,753		)	(8,560		)	(7,454		)	(8,350		)
Property management fees	(181		)	(720		)	(49		)	(72		)	(60		)	(197		)	(210		)
NOI	$	94,112		$	102,575		$	29,262		$	31,797		$	33,053		$	30,426		$	31,123
Base rent	$	116,002		$	134,879		$	36,002		$	38,629		$	41,371		$	40,887		$	42,393
Free rent	$	(8,040	)	$	(7,367	)	$	(2,288	)	$	(3,022	)	$	(2,730	)	$	(2,204	)	$	(1,975	)
Net income (loss) attributable to common stockholders	$	94,161		$	(23,084	)	$	(8,041	)	$	4,031		$	98,171		$	(6,333	)	$	(1,025	)
Diluted income (loss) per common share (1)	$	1.95		$	(0.49	)	$	(0.17	)	$	0.08		$	2.04		$	(0.13	)	$	(0.02	)
FFO attributable to common stockholders	$	52,918		$	57,615		$	15,885		$	18,735		$	18,298		$	18,917		$	19,239
Diluted FFO per common share	$	1.10		$	1.21		$	0.33		$	0.39		$	0.38		$	0.40		$	0.40
FFO attributable to common stockholders, excluding certain items	$	55,748		$	60,365		$	16,508		$	19,766		$	19,474		$	19,086		$	18,324
Diluted FFO, excluding certain items, per common share	$	1.16		$	1.26		$	0.34		$	0.41		$	0.41		$	0.40		$	0.38
Normalized EBITDA	$	81,868		$	97,007		$	26,182		$	27,558		$	28,128		$	29,099		$	30,036
Weighted average common shares outstanding - basic	47,532			47,403			47,550			47,536			47,511			47,414			47,413
Weighted average common shares outstanding - diluted	47,956			47,796			48,160			47,875			47,806			47,888			47,846
Selected Additional Trend Information:
Renewal % based on square feet	73		%	54		%	83		%	53		%	78		%	82		%	41		%
Distributions declared on common shares	$	25,829		$	25,783		$	8,612		$	8,611		$	8,606		$	8,594		$	8,595
Annualized distribution yield (2)	3.7		%	4.7		%	3.7		%	3.9		%	4.1		%	4.1		%	4.7		%

_______________________________

(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.

Notes:

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, divided by the total square footage under commenced leases at period end.

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 29-30.

Supplemental Operating and Financial Data 3Q’17 Page 2

Financial Highlights (continued)
(in thousands, except stock prices, percentages, and ratios)
	30-Sep-17			30-Sep-16			30-Sep-17			30-Jun-17			31-Mar-17			31-Dec-16			30-Sep-16
Selected Balance Sheet Items:
Total book value of real estate	$	1,325,536		$	1,248,491		$	1,325,536		$	1,339,693		$	1,270,510		$	1,250,198		$	1,248,491
Cash and cash equivalents	$	10,959		$	51,466		$	10,959		$	28,763		$	55,215		$	14,884		$	51,466
Unconsolidated cash and cash equivalents (at ownership %)	$	2,495		$	5,479		$	2,495		$	5,082		$	1,104		$	5,348		$	5,479
Restricted cash	$	13,323		$	8,586		$	13,323		$	10,953		$	7,685		$	7,509		$	8,586
Total assets	$	1,581,288		$	1,570,685		$	1,581,288		$	1,580,776		$	1,561,423		$	1,552,540		$	1,570,685
Mortgage debt	$	191,694		$	270,758		$	191,694		$	192,043		$	206,400		$	200,131		$	270,758
Revolving credit facility and term loans	$	598,000		$	575,000		$	598,000		$	595,000		$	575,000		$	634,000		$	575,000
Unconsolidated debt (at ownership %)	$	43,572		$	103,350		$	43,572		$	40,931		$	30,027		$	109,790		$	103,350
Total liabilities	$	889,465		$	951,701		$	889,465		$	873,915		$	849,702		$	932,024		$	951,701
Capitalization:
Shares of common stock outstanding	47,552			47,413			47,552			47,542			47,526			47,473			47,413
Restricted stock units outstanding	228			150			228			238			233			150			150
Shares of restricted stock outstanding	291			333			291			291			276			247			333
	48,071			47,896			48,071			48,071			48,035			47,870			47,896
High stock price	$	19.50		$	17.81		$	19.50		$	18.61		$	18.80		$	17.44		$	17.81
Low stock price	$	15.96		$	12.52		$	16.67		$	15.96		$	16.67		$	14.06		$	15.07
Average closing stock price	$	17.81		$	15.14		$	18.39		$	17.17		$	17.87		$	15.58		$	16.37
Closing stock price	$	19.30		$	15.44		$	19.30		$	18.48		$	17.36		$	17.39		$	15.44
Market capitalization (1)	$	927,770		$	739,514		$	927,770		$	888,352		$	833,888		$	832,459		$	739,514
Total debt (2)	$	833,266		$	949,108		$	833,266		$	827,974		$	811,427		$	943,921		$	949,108
Net debt (3)	$	819,812		$	892,163		$	819,812		$	794,129		$	755,108		$	923,689		$	892,163
Total capitalization	$	1,761,036		$	1,688,622		$	1,761,036		$	1,716,326		$	1,645,315		$	1,776,380		$	1,688,622
	Nine Months Ended						Three Months Ended
	30-Sep-17			30-Sep-16			30-Sep-17			30-Jun-17			31-Mar-17			31-Dec-16			30-Sep-16
Ratios:
NOI margin % (4)	58.2		%	54.3		%	57.5		%	58.3		%	58.6		%	56.3		%	55.6		%
Normalized fixed charge coverage (5)	2.99			2.45			2.86			3.12			2.98			2.68			2.42
Normalized interest coverage (5)	3.12			2.74			2.97			3.25			3.13			2.91			2.74
Net debt/normalized annualized estimated full period EBITDA from properties owned at period end (5)	N/A			N/A			7.82x			7.10x			7.29x			8.04x			7.63x
Net debt/development-adjusted normalized annualized estimated full period EBITDA from properties owned at period end (5) (6)	N/A			N/A			7.45x			6.67x			6.95x			7.82x			7.46x
(1) Market capitalization is equal to outstanding shares (common stock, restricted stock, and restricted stock units, as if converted) times the closing price of our common stock as of 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.
(6) Includes estimated stabilized NOI for development properties, to the extent of percentage of completion of the respective developments based on spend to date.

Supplemental Operating and Financial Data 3Q’17 Page 3

Consolidated Balance Sheets
(in thousands, except share and per share data)
		30-Sep-17			30-Jun-17			31-Mar-17			31-Dec-16			30-Sep-16
Assets
	Real estate
	Land	$	140,959		$	141,010		$	142,776		$	143,537		$	143,581
	Land held for development	45,059			45,059			45,059			45,059			45,059
	Buildings and improvements, net	1,122,072			1,145,496			1,076,701			1,043,641			1,048,194
	Real estate under development	17,446			8,128			5,974			17,961			11,657
	Total real estate	1,325,536			1,339,693			1,270,510			1,250,198			1,248,491
	Cash and cash equivalents	10,959			28,763			55,215			14,884			51,466
	Restricted cash	13,323			10,953			7,685			7,509			8,586
	Accounts receivable, net	82,737			62,413			60,996			71,459			67,100
	Prepaid expenses and other assets	20,115			16,399			18,163			25,305			5,540
	Investments in unconsolidated entities	33,977			25,530			40,421			76,813			76,954
	Deferred financing fees, net	1,735			2,089			2,442			2,395			2,698
	Acquired above-market leases, net	543			659			778			898			1,017
	Other lease intangibles, net	90,547			92,431			70,962			60,946			61,919
	Other intangible assets, net	1,816			1,846			1,876			9,787			9,888
	Assets associated with real estate held for sale	—			—			32,375			32,346			37,026
Total assets		$	1,581,288		$	1,580,776		$	1,561,423		$	1,552,540		$	1,570,685
Liabilities and equity
Liabilities
	Mortgage debt	$	191,694		$	192,043		$	206,400		$	200,131		$	270,758
	Unsecured term loans	575,000			575,000			575,000			575,000			575,000
	Unsecured revolving credit facility	23,000			20,000			—			59,000			—
	Unamortized debt issuance costs	(7,308		)	(7,799		)	(7,495		)	(7,348		)	(7,838		)
	Total notes payable, net	782,386			779,244			773,905			826,783			837,920
	Accounts payable and accrued liabilities	78,174			64,412			51,813			74,458			65,924
	Acquired below-market leases, net	19,462			20,653			15,252			6,886			7,856
	Distributions payable	—			—			—			8,601			8,602
	Other liabilities	9,443			9,606			7,762			14,353			30,005
	Obligations associated with real estate held for sale	—			—			970			943			1,394
Total liabilities		889,465			873,915			849,702			932,024			951,701
Commitments and contingencies
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	2,609,361			2,608,260			2,607,071			2,606,098			2,605,569
	Cumulative distributions and net loss attributable to common stockholders	(1,918,473		)	(1,901,820		)	(1,897,240		)	(1,986,515		)	(1,971,588		)
	Accumulated other comprehensive income (loss)	257			(274		)	1,026			(1,042		)	(16,662		)
	Stockholders’ equity	691,150			706,171			710,862			618,546			617,324
	Noncontrolling interests	673			690			859			1,970			1,660
Total equity		691,823			706,861			711,721			620,516			618,984
Total liabilities and equity		$	1,581,288		$	1,580,776		$	1,561,423		$	1,552,540		$	1,570,685
Common stock, number of shares issued and outstanding		47,552,014			47,542,066			47,525,725			47,473,218			47,412,705

Supplemental Operating and Financial Data 3Q’17 Page 4

	Consolidated Statements of Operations
	(in thousands, except share and per share amounts)
		Nine Months Ended						Three Months Ended
		30-Sep-17			30-Sep-16			30-Sep-17			30-Jun-17			31-Mar-17			31-Dec-16			30-Sep-16
Revenue
	Rental income	$	152,186		$	177,854		$	47,333		$	51,554		$	53,299		$	51,613		$	53,975
	Straight-line rent and lease incentive revenue	6,334			5,903			2,280			2,026			2,028			1,500			756
	Above- and below-market rent amortization	2,863			3,399			1,075			880			908			856			936
	Lease termination fees	452			1,587			232			92			128			106			331
	Total revenue	161,835			188,743			50,920			54,552			56,363			54,075			55,998
Expenses
	Property related expenses	41,790			56,605			13,170			13,930			14,690			15,998			16,315
	Real estate taxes	25,752			28,843			8,439			8,753			8,560			7,454			8,350
	Property management fees	181			720			49			72			60			197			210
	Total property operating expenses	67,723			86,168			21,658			22,755			23,310			23,649			24,875
	Interest expense	22,851			31,977			7,516			7,397			7,938			8,746			9,754
	Interest rate hedge ineffectiveness expense (income)	9			407			8			(29		)	30			(979		)	(1,534		)
	Amortization of deferred financing costs	2,561			2,308			882			867			812			798			785
	Total interest expense	25,421			34,692			8,406			8,235			8,780			8,565			9,005
	General and administrative	16,490			17,853			5,157			5,626			5,707			5,796			5,529
	Asset impairment losses	—			8,977			—			—			—			—			4,151
	Real estate depreciation and amortization	70,641			87,351			23,653			22,557			24,431			23,771			25,062
	Depreciation and amortization - non-real estate assets	325			623			132			95			98			85			71
	Total expenses	180,600			235,664			59,006			59,268			62,326			61,866			68,693
	Interest and other income	1,271			866			170			783			318			303			248
	Loss on early extinguishment of debt	(545		)	—			—			—			(545		)	—			—
Loss before income taxes, equity in operations
	of investments, and gains	(18,039		)	(46,055		)	(7,916		)	(3,933		)	(6,190		)	(7,488		)	(12,447		)
	Benefit (provision) for income taxes	(297		)	(467		)	(202		)	149			(244		)	(188		)	(4		)
	Equity in operations of investments	6,367			1,884			67			6,556			(256		)	685			646
Income (loss) before gains		(11,969		)	(44,638		)	(8,051		)	2,772			(6,690		)	(6,991		)	(11,805		)
Gain on sale of assets		92,012			21,526			—			1,262			90,750			650			10,777
Gain on remeasurement of investment in unconsolidated entities		14,168			—			—			—			14,168			—			—
Net income (loss)		94,211			(23,112		)	(8,051		)	4,034			98,228			(6,341		)	(1,028		)
	Noncontrolling interests	(50		)	28			10			(3		)	(57		)	8			3
Net income (loss) attributable to common stockholders		$	94,161		$	(23,084	)	$	(8,041	)	$	4,031		$	98,171		$	(6,333	)	$	(1,025	)
Basic weighted average common shares outstanding		47,532,432			47,402,724			47,549,635			47,536,320			47,510,915			47,414,021			47,412,705
Diluted weighted average common shares outstanding (1)		47,956,167			47,402,724			47,549,635			47,875,418			47,806,069			47,414,021			47,412,705
Basic income (loss) per common share		$	1.97		$	(0.49	)	$	(0.17	)	$	0.08		$	2.05		$	(0.13	)	$	(0.02	)
Diluted income (loss) per common share (1)		$	1.95		$	(0.49	)	$	(0.17	)	$	0.08		$	2.04		$	(0.13	)	$	(0.02	)
Distributions declared per common share		$	0.54		$	0.54		$	0.18		$	0.18		$	0.18		$	0.18		$	0.18
(1)	In periods of net loss there are no dilutive securities and diluted loss per common share is calculated using weighted average common shares outstanding - basic as the denominator.

Supplemental Operating and Financial Data 3Q’17 Page 5

Calculations of FFO and Additional Information
(in thousands, except per share data)
		Nine Months Ended						Three Months Ended
		30-Sep-17			30-Sep-16			30-Sep-17			30-Jun-17			31-Mar-17			31-Dec-16			30-Sep-16
Net income (loss)		$	94,211		$	(23,112	)	$	(8,051	)	$	4,034		$	98,228		$	(6,341	)	$	(1,028	)
Noncontrolling interests		(50		)	28			10			(3		)	(57		)	8			3
Net income (loss) attributable to common stockholders		94,161			(23,084		)	(8,041		)	4,031			98,171			(6,333		)	(1,025		)
Adjustments (1):
	Real estate depreciation and amortization from consolidated properties	70,641			87,351			23,653			22,557			24,431			23,771			25,062
	Real estate depreciation and amortization from unconsolidated properties	986			6,108			289			131			566			2,150			2,058
	Real estate depreciation and amortization - noncontrolling interest	—			(6		)	—			—			—			—			—
	Impairment of depreciable real estate assets	—			8,977			—			—			—			—			4,151
	Gain on sale of depreciable real estate	(98,725		)	(21,586		)	—			(7,975		)	(90,750		)	(650		)	(10,837		)
	Gain on remeasurement of investment in unconsolidated entities	(14,168		)	—			—			—			(14,168		)	—			—
	Taxes associated with sale of depreciable real estate	—			(88		)	—			—			—			—			(152		)
	Noncontrolling interests	23			(57		)	(16		)	(9		)	48			(21		)	(18		)
FFO attributable to common stockholders		52,918			57,615			15,885			18,735			18,298			18,917			19,239
Adjustments (1):
	Severance charges	451			493			—			451			—			532			—
	Interest rate hedge ineffectiveness expense (income) (2)	9			407			8			(29		)	30			(979		)	(1,534		)
	Loss on early extinguishment of debt	545			—			—			—			545			—			—
	Default interest (3)	1,827			1,852			616			609			602			616			619
	Noncontrolling interests	(2		)	(2		)	(1		)	—			(1		)	—			—
FFO attributable to common stockholders, excluding certain items		$	55,748		$	60,365		$	16,508		$	19,766		$	19,474		$	19,086		$	18,324
Recurring capital expenditures (1)		$	(22,022	)	$	(25,984	)	$	(10,271	)	$	(5,135	)	$	(6,616	)	$	(10,902	)	$	(5,256	)
Straight-line rent adjustments (1)		$	(8,655	)	$	(7,755	)	$	(3,757	)	$	(2,507	)	$	(2,391	)	$	(1,998	)	$	(1,247	)
Above- and below-market rent amortization (1)		$	(2,865	)	$	(3,629	)	$	(1,075	)	$	(871	)	$	(919	)	$	(922	)	$	(1,014	)
Amortization of deferred financing costs (1)		$	2,724		$	2,501		$	918		$	984		$	822		$	844		$	828
Amortization of restricted shares and units		$	3,010		$	3,118		$	1,077		$	1,023		$	910		$	1,041		$	1,069
Depreciation and amortization - non-real estate assets		$	325		$	623		$	132		$	95		$	98		$	85		$	71
Weighted average common shares outstanding - basic		47,532			47,403			47,550			47,536			47,511			47,414			47,413
Weighted average common shares outstanding - diluted		47,956			47,796			48,160			47,875			47,806			47,888			47,846
Diluted FFO per common share		$	1.10		$	1.21		$	0.33		$	0.39		$	0.38		$	0.40		$	0.40
Diluted FFO, excluding certain items, per common share		$	1.16		$	1.26		$	0.34		$	0.41		$	0.41		$	0.40		$	0.38

Rent abatements of approximately $1.9 million were provided to tenants at the Eldridge Properties during the third quarter of 2017 because the properties were inaccessible for a portion of the quarter. We expect these losses to be recovered from insurance proceeds in subsequent quarters.

(1) Includes our pro rata share of consolidated and unconsolidated amounts, including for our period of ownership of properties sold.

(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 (income) within “interest expense” on our consolidated statements of operations.

(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 29-30.

Supplemental Operating and Financial Data 3Q’17 Page 6

Calculations of EBITDA
(in thousands, except ratios)
		Three Months Ended
		30-Sep-17			30-Jun-17			31-Mar-17			31-Dec-16			30-Sep-16
Net income (loss) attributable to common stockholders		$	(8,041	)	$	4,031		$	98,171		$	(6,333	)	$	(1,025	)
Adjustments:
	Noncontrolling interests	(9		)	3			59			(5		)	(2		)
	Interest expense:
	Interest expense - consolidated	7,516			7,397			7,938			8,746			9,754
	Interest expense - unconsolidated entities	335			77			160			723			725
	Interest rate hedge ineffectiveness expense (income) (1)	8			(29		)	30			(979		)	(1,534		)
	Amortization of deferred financing costs - consolidated	882			867			812			798			785
	Amortization of deferred financing costs - unconsolidated entities	36			117			10			46			43
	Total interest expense	8,777			8,429			8,950			9,334			9,773
	Tax provision (benefit) - consolidated	202			(149		)	244			188			4
	Tax provision - unconsolidated entities	—			5			1			49			4
	Depreciation and amortization - consolidated	23,785			22,652			24,529			23,856			25,133
	Depreciation and amortization - unconsolidated entities	289			131			566			2,150			2,058
	Impairment losses	—			—			—			—			4,151
	Gain on sale of real estate	—			(7,975		)	(90,750		)	(650		)	(10,837		)
	Gain on remeasurement of investment in unconsolidated entities	—			—			(14,168		)	—			—
	Loss on early extinguishment of debt	—			—			545			—			—
EBITDA		25,003			27,127			28,147			28,589			29,259
Adjustments:
	Non-cash write-off (recoveries) of tenant receivables	(742		)	(20		)	(19		)	(22		)	777
	Rent abatements due to building closures (2)	1,921			—			—			—			—
	Severance charges	—			451			—			532			—
Normalized EBITDA		26,182			27,558			28,128			29,099			30,036
Adjustments:
	EBITDA from properties disposed before period end	11			(1,625		)	(2,229		)	(385		)	(811		)
	Full quarter adjustment for acquired properties	—			2,024			—			—			—
Normalized estimated full period EBITDA from properties  owned at period end		$	26,193		$	27,957		$	25,899		$	28,714		$	29,225
Fixed charges
	Interest expense	$	8,777		$	8,429		$	8,950		$	9,334		$	9,773
	Interest rate hedge ineffectiveness (expense) income (1)	(8		)	29			(30		)	979			1,534
	Default interest (3)	(616		)	(609		)	(602		)	(616		)	(619		)
	Capitalized interest incurred (4)	653			637			662			289			267
	Normalized interest expense	8,806			8,486			8,980			9,986			10,955
	Principal payments (excludes debt payoff)	349			357			444			854			1,436
Normalized fixed charges		$	9,155		$	8,843		$	9,424		$	10,840		$	12,391
Normalized interest coverage (5)		2.97			3.25			3.13			2.91			2.74
Normalized fixed charge coverage (5)		2.86			3.12			2.98			2.68			2.42

(1) 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 (income).

(2) Rent abatements provided to tenants at the Eldridge Properties during the third quarter of 2017 because the properties were inaccessible for a portion of the quarter. We expect these losses to be recovered from insurance proceeds in subsequent quarters.

(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) Excludes capitalized interest funded from construction loans.

(5) 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 29-30.

Supplemental Operating and Financial Data 3Q’17 Page 7

Unconsolidated Entities Financial Summary
at TIER REIT Ownership Share
As of and for the Quarter Ended September 30, 2017
(dollars in thousands)
		Domain 8			Third + Shoal			Total
Ownership % during the period		50.00%			47.50%
Ownership % at period end		50.00%			47.50%
Results of Operations
Rental income		$	73		$	—		$	73
Straight-line rent and lease incentive revenue		1,011			—			1,011
	Total revenue	1,084			—			1,084
Property related expenses		205			—			205
Real estate taxes		137			—			137
Property management fees		6			—			6
	NOI	736			—			736
Interest expense		335			—			335
Amortization of deferred financing costs		36			—			36
Real estate depreciation and amortization		285			—			285
Interest income and other expense		1			—			1
	Net income (loss)	79			—			79
Adjustments:
Depreciation of basis adjustments		(4		)	—			(4		)
Property related expense allocation to basis		(8		)	—			(8		)
	Adjusted net income (loss)	67			—			67
Adjustments:
	Real estate depreciation and amortization	289			—			289
Funds from operations		$	356		$	—		$	356
Balance Sheet Information
Real estate book value		$	34,526		$	29,810		$	64,336
Accumulated depreciation		(291		)	(299		)	(590		)
Real estate book value after depreciation		$	34,235		$	29,511		$	63,746
Cash and cash equivalents		$	2,461		$	34		$	2,495
Assets		$	41,050		$	31,464		$	72,514
Mortgage debt		$	43,572		$	—		$	43,572
Company’s equity interest in investment		$	(2,826	)	$	27,728		$	24,902
Basis differences		4,370			4,705			9,075
Carrying value of the Company’s investment		$	1,544		$	32,433		$	33,977
________________________________
Notes:
Investments in unconsolidated entities consist of our noncontrolling interest in properties accounted for using the equity method. 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.

Supplemental Operating and Financial Data 3Q’17 Page 8

Same Store Analysis
(in thousands, except property count and percentages)
	Three Months Ended											Nine Months Ended
Same Store NOI:	30-Sep-17			30-Sep-16			Favorable/ (Unfavorable)					30-Sep-17			30-Sep-16			Favorable/ (Unfavorable)
Same Store Revenues:
Total revenue (1)	$	42,553		$	45,180		$	(2,627	)			$	133,484		$	137,862		$	(4,378	)
Less: Lease termination fees	(55		)	(256		)	201					(275		)	(1,442		)	1,167
	42,498			44,924			(2,426		)	(5.4	)%	133,209			136,420			(3,211		)	(2.4	)%
Same Store Expenses:
Property operating expenses (less tenant improvement demolition costs)	11,843			12,132			289			2.4	%	35,553			36,963			1,410			3.8	%
Real estate taxes	6,905			7,642			737			9.6	%	21,657			22,645			988			4.4	%
Property management fees	25			44			19			43.2	%	66			150			84			56.0	%
Property expenses	18,773			19,818			1,045			5.3	%	57,276			59,758			2,482			4.2	%
Same Store NOI - consolidated properties	23,725			25,106			(1,381		)	(5.5	)%	75,933			76,662			(729		)	(1.0	)%
Same Store NOI - unconsolidated properties (at ownership %)	1,394			851			543			63.8	%	4,067			2,339			1,728			73.9	%
Same Store NOI	$	25,119		$	25,957		$	(838	)	(3.2	)%	$	80,000		$	79,001		$	999		1.3	%
Same Store Cash NOI:
Same Store NOI - consolidated properties	$	23,725		$	25,106		$	(1,381	)			$	75,933		$	76,662		$	(729	)
Less:
Straight-line rent revenue adjustment	(1,990		)	(677		)	(1,313		)			(5,666		)	(4,170		)	(1,496		)
Above- and below-market rent amortization	(648		)	(1,035		)	387					(2,017		)	(3,603		)	1,586
Same Store Cash NOI - consolidated properties	21,087			23,394			(2,307		)	(9.9	)%	68,250			68,889			(639		)	(0.9	)%
Same Store Cash NOI - unconsolidated properties (at ownership %)	1,116			725			391			53.9	%	3,313			1,975			1,338			67.7	%
Same Store Cash NOI	$	22,203		$	24,119		$	(1,916	)	(7.9	)%	$	71,563		$	70,864		$	699		1.0	%
Same Store occupancy % at period end (% owned)	87.2		%	89.4		%						87.2		%	89.4		%
Same Store operating properties (2)	18											18
Same Store rentable square feet (% owned)	6,626											6,626
Reconciliation of net income (loss) to Same Store NOI and Same Store Cash NOI:
Net income (loss)	$	(8,051	)	$	(1,028	)						$	94,211		$	(23,112	)
Adjustments:
Interest expense	8,406			9,005								25,421			34,692
Asset impairment losses	—			4,151								—			8,977
Tenant improvement demolition costs	127			306								242			445
General and administrative	5,157			5,529								16,490			17,853
Real estate depreciation and amortization	23,653			25,062								70,641			87,351
Depreciation and amortization of non-real estate assets	132			71								325			623
Interest and other income	(170		)	(248		)						(1,271		)	(866		)
Loss on early extinguishment of debt	—			—								545			—
Provision for income taxes	202			4								297			467
Equity in operations of investments	(67		)	(646		)						(6,367		)	(1,884		)
Gain on sale of assets	—			(10,777		)						(92,012		)	(21,526		)
Gain on remeasurement of investment in unconsolidated entities	—			—								(14,168		)	—
Net operating income of non-same store properties	(5,609		)	(6,067		)						(18,146		)	(24,916		)
Lease termination fees	(55		)	(256		)						(275		)	(1,442		)
Same Store NOI of unconsolidated properties (at ownership %)	1,394			851								4,067			2,339
Same Store NOI	25,119			25,957								80,000			79,001
Straight-line rent revenue adjustment	(1,990		)	(677		)						(5,666		)	(4,170		)
Above- and below-market rent amortization	(648		)	(1,035		)						(2,017		)	(3,603		)
Cash NOI adjustments for unconsolidated properties (at ownership %)	(278		)	(126		)						(754		)	(364		)
Same Store Cash NOI	$	22,203		$	24,119							$	71,563		$	70,864
(1) Rent abatements of approximately $1.9 million were provided to tenants at the Eldridge Properties during the third quarter of 2017 because the properties were inaccessible for a portion of the quarter. We expect these losses to be recovered from insurance proceeds in subsequent quarters.
(2) Includes our Domain 2 and Domain 7 properties (although we acquired full ownership of these two properties in January 2017) as unconsolidated and at their prior year ownership percentage of 49.84% in all periods presented.
For additional information regarding the non-GAAP measures, see pages 29-30.

Supplemental Operating and Financial Data 3Q’17 Page 9

Schedule of Properties Owned
as of September 30, 2017
(in thousands, except $/RSF and percentages)
		Rentable SF  (100%)	Rentable SF  (own %)			Average Effective Rent (own %)		Average Effective Rent $/RSF (own %)		Average Adjusted 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	90.5	%	$	20,508	$	36.62	$	38.87	$	45.26	8.5	%	10.8	%
Domain 2	Austin, TX	115	115	100.0	%	4,896		$	42.57	$	42.57	$	49.05	1.6	%	2.6	%
Domain 3	Austin, TX	179	179	92.7	%	4,824		$	29.06	$	34.12	$	39.09	2.5	%	2.5	%
Domain 4	Austin, TX	153	153	100.0	%	5,520		$	36.08	$	36.08	$	39.28	2.1	%	2.9	%
Domain 7	Austin, TX	222	222	100.0	%	8,784		$	39.57	$	41.41	$	45.64	3.1	%	4.6	%
Domain 8 (50%)	Austin, TX	291	146	100.0	%	265		$	1.82	$	38.32	$	42.50	2.0	%	0.1	%
Austin		1,579	1,434	95.0	%	44,797		$	32.89	$	38.64	$	43.92	19.8	%	23.6	%
5950 Sherry Lane	Dallas, TX	197	197	89.8	%	6,708		$	37.90	$	39.05	$	40.05	2.7	%	3.5	%
Burnett Plaza	Fort Worth, TX	1,025	1,025	87.3	%	19,512		$	21.80	$	23.53	$	24.50	14.1	%	10.3	%
Centreport Office Center	Fort Worth, TX	133	133	85.0	%	2,570		$	22.74	$	22.74	$	22.15	1.8	%	1.4	%
Legacy District One	Plano, TX	319	319	100.0	%	11,915		$	37.35	$	37.35	$	41.50	4.4	%	6.3	%
Dallas/Fort Worth		1,674	1,674	89.8	%	40,705		$	27.06	$	28.23	$	29.76	23.0	%	21.5	%
One BriarLake Plaza	Houston, TX	502	502	89.2	%	16,896		$	37.71	$	42.51	$	42.75	6.9	%	8.9	%
Two BriarLake Plaza	Houston, TX	333	333	67.9	%	9,516		$	42.11	$	42.27	$	44.42	4.6	%	5.0	%
One & Two Eldridge Place	Houston, TX	519	519	70.7	%	11,568		$	31.52	$	33.42	$	36.25	7.1	%	6.1	%
Three Eldridge Place	Houston, TX	305	305	71.1	%	9,132		$	42.08	$	42.08	$	40.51	4.2	%	4.8	%
Loop Central	Houston, TX	575	575	83.7	%	12,288		$	25.55	$	25.55	$	26.00	7.9	%	6.5	%
Houston		2,234	2,234	77.8	%	59,400		$	34.16	$	35.81	$	36.68	30.8	%	31.3	%
Bank of America Plaza	Charlotte, NC	891	891	95.8	%	21,156		$	24.77	$	26.30	$	32.50	12.3	%	11.2	%
Charlotte		891	891	95.8	%	21,156		$	24.77	$	26.30	$	32.50	12.3	%	11.2	%
Plaza at MetroCenter	Nashville, TN	361	361	87.5	%	5,928		$	18.76	$	18.76	$	19.50	5.0	%	3.1	%
Nashville		361	361	87.5	%	5,928		$	18.76	$	18.76	$	19.50	5.0	%	3.1	%
500 East Pratt	Baltimore, MD	280	280	93.9	%	8,001		$	30.42	$	34.21	$	32.50	3.9	%	4.2	%
Woodcrest (1)	Cherry Hill, NJ	386	386	97.2	%	9,721		$	25.92	$	25.92	$	20.74	5.3	%	5.1	%
Other		666	666	95.8	%	17,722		$	27.78	$	29.34	$	25.59	9.1	%	9.3	%
Total operating office properties		7,405	7,260	88.3	%	$	189,708	$	29.58	$	31.89	$	34.09	100.0	%	100.0	%
Non-operating property
Fifth Third Center (2)	Columbus, OH	331	331	50.5	%
Total Properties		7,736	7,591
Development Properties				Leased %
Domain 11	Austin, TX	324	324	98.0	%
Third + Shoal (47.5%)	Austin, TX	345	164	67.0	%
(1) Includes two properties.
(2) The non-recourse loan secured by 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, divided by the total square footage under commenced leases at period end.
Average adjusted 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, excluding any scheduled future rent increases, as adjusted for our ownership interest, divided by the total square footage under commenced leases at period end. .

Supplemental Operating and Financial Data 3Q’17 Page 10

Portfolio Analysis
For the Three Months Ended and
as of September 30, 2017
	Number of Properties	Number of Buildings	Net Rentable Area (000’s)	Commenced % SF Leased		% of NRA		NOI ($000’s)  (1)			% of NOI
Market
Austin	6	9	1,434	95.0	%	19.8	%	$	8,469		28.7	%
Dallas/Fort Worth	4	5	1,674	89.8	%	23.0	%	7,224			24.5	%
Houston	5	8	2,234	77.8	%	30.8	%	5,992			20.3	%
Charlotte	1	1	891	95.8	%	12.3	%	4,337			14.7	%
Nashville	1	2	361	87.5	%	5.0	%	860			2.9	%
Other	3	3	666	95.8	%	9.1	%	2,635			8.9	%
Total	20	28	7,260	88.3	%	100.0	%	29,517			100.0	%
Reconciliation to NOI (Consolidated):
Less NOI from unconsolidated properties								(736		)
Plus NOI from non-operating properties (including disposed properties)								481
NOI (Consolidated)								$	29,262
Notes:
Analysis relates to operating properties owned at the end of the most recent period only and includes pro-forma adjustments for any acquired properties to reflect a full quarter.
Amounts reflect TIER REIT’s ownership %.
NOI is a non-GAAP performance measure. A calculation of NOI is presented on page 2.
(1) NOI in Houston reflects rent abatements of $1.9 million that were provided to tenants at the Eldridge Properties during the third quarter of 2017 because the properties were inaccessible for a portion of the quarter. We expect these losses to be recovered from insurance proceeds in subsequent quarters.

Supplemental Operating and Financial Data 3Q’17 Page 11

Components of Net Asset Value
(in thousands, except percentages)
		Annualized Three Months Ended
		30-Sep-17
Consolidated total revenue		$	203,680
	Less:
	GAAP rent adjustments	(13,420		)
	Lease termination fees	(928		)
		189,332
Consolidated total property operating expenses		(86,632		)
Adjusted cash NOI (1)		102,700
	Adjustments:
	Adjusted cash NOI from unconsolidated real estate assets, at ownership share	(1,100		)
	Adjusted cash NOI from sold properties, at ownership share	(39		)
	Adjusted cash NOI from land and development properties, at ownership share (2)	166
	Adjusted cash NOI attributed to rent abatements at the Eldridge Properties (3)	7,684
	Incremental pro forma stabilized adjusted cash NOI from executed leases at Domain 8 and Domain 11, at ownership share	16,399
Total adjusted cash NOI at ownership share (4)		$	125,810
		30-Sep-17
Other real estate properties
	Cost basis of land and development properties, at ownership share (5)	$	79,062
Other tangible assets
	Cash and cash equivalents	$	10,959
	Restricted cash	13,323
	Accounts receivable, net (excluding $59,939 of straight-line rent receivable and $15,000 of insurance receivable) (6)	7,798
	Prepaid expenses and other assets	20,115
Total other tangible assets		$	52,195
Liabilities
	Mortgage debt	$	191,694
	Unsecured term loans and revolving credit facility	598,000
	Accrued and other liabilities	87,617
	Ownership share of unconsolidated mortgage debt	43,572
	Remaining estimated cost to complete Domain 11 development property and Domain 8	94,900
Total liabilities		$	1,015,783
Total common shares, restricted stock, and restricted stock units outstanding		48,071
(1)	Includes approximately $16.3 million of adjusted cash NOI related to two non-stabilized properties (Burnett Plaza and Two BriarLake Plaza). At stabilization these properties are expected to generate adjusted cash NOI of approximately $21.0 million.
(2)	Includes Domain 9, Domain 10, Domain 11, Domain 12, Legacy District Two, Legacy District Three, and Domain Blocks D & G at ownership share.
(3)	Rent abatements of approximately $1.9 million were provided to tenants at the Eldridge Properties during the third quarter of 2017 because the properties were inaccessible for a portion of the quarter. We expect these losses to be recovered from insurance proceeds in subsequent quarters.
(4)	Comprised of adjusted cash NOI from the following markets: Austin – 32%, Dallas – 19%, Houston – 25%, Charlotte – 12%, Cherry Hill – 4%, Baltimore – 4%, Nashville – 2%, Other – 2%
(5)	Includes Third + Shoal, Domain 9, Domain 10, Domain 12, Legacy District Two, Legacy District Three, and Domain Blocks D & G at ownership share.
(6)	Excludes insurance receivable expected to be recovered for the write-off of net book value of damaged assets.

Supplemental Operating and Financial Data 3Q’17 Page 12

Significant Tenants
September 30, 2017
(in thousands, except percentages and years)
	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
Encana Oil & Gas (USA) Inc.	$	11,910	6	%	319	5	%	9.8	Ba2 / BBB
Amoco	9,139		4	%	217	3	%	1.5	A1 / A-
Bank of America	8,739		4	%	388	6	%	2.9	Baa1 / BBB+
Apache Corporation	8,433		4	%	210	3	%	7.1	Baa3 / BBB
GM Financial	7,939		4	%	326	5	%	8.4	Baa3 / BBB
Samsung Engineering America Inc.	7,031		3	%	161	3	%	9.2	NR
Amazon	6,508		3	%	161	3	%	7.4	Baa1 / AA-
Universal Pegasus International	5,574		3	%	218	3	%	2.6	NR
McDermott, Inc.	5,411		3	%	169	3	%	3.3	B1 / B+
GSA	5,255		3	%	226	4	%	3.6	U.S. Government
HomeAway	4,899		2	%	115	2	%	8.4	Ba1 / BBB-
Blackbaud, Inc.	4,374		2	%	133	2	%	6.0	NR
Xerox Corporation	3,959		2	%	151	2	%	2.9	Baa3 / BBB-
Accruent, LLC	3,680		2	%	104	2	%	6.9	NR
SCOR Global Life	3,572		2	%	140	2	%	10.8	NR / AA-
Total of largest 15 tenants	$	96,423	47	%	3,038	48	%	5.9
Total all tenants	$	204,439			6,413			5.8

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 3Q’17 Page 13

Industry Diversification (by square feet)

As of September 30, 2017

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 11 industry classifications.

Supplemental Operating and Financial Data 3Q’17 Page 14

Leasing Activity Summary
For the Three Months Ended
September 30, 2017
		Occupancy								Occupancy
		%		SF (000’s)	Activity for the Quarter (SF 000’s)					SF (000’s)	%		Cash Net Rent /SF						Straight-lined Net Rent /SF
Market	Rentable SF (000’s)	30-Jun-17		30-Jun-17	Expiring		Renewals	Expansions	New	30-Sep-17	30-Sep-17		Expiring		Activity		% Increase		Expiring		Activity		% Increase
Austin	1,434	95.7	%	1,373	(61	)	12	—	38	1,362	95.0	%	$	22.83	$	27.01	18	%	$	22.81	$	27.50	21	%
Dallas/Fort Worth	1,674	90.9	%	1,521	(127	)	102	—	8	1,504	89.8	%	$	13.11	$	14.96	14	%	$	12.31	$	15.36	25	%
Houston	2,234	77.9	%	1,740	(38	)	11	—	26	1,739	77.8	%	$	16.57	$	16.04	(3	)%	$	14.61	$	17.51	20	%
Charlotte	891	95.4	%	850	(385	)	381	—	8	854	95.8	%	$	12.77	$	12.92	1	%	$	9.56	$	14.23	49	%
Nashville	361	87.5	%	316	—		—	—	—	316	87.5	%	$	—	$	—	—	%	$	—	$	—	—	%
Other	666	95.9	%	639	(10	)	9	—	—	638	95.8	%	$	22.28	$	21.69	(3	)%	$	18.74	$	23.91	28	%
Total	7,260	88.7	%	6,439	(621	)	515	—	80	6,413	88.3	%	$	14.06	$	14.81	5	%	$	11.64	$	15.90	37	%
	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
Q1 Activity	7,517	90.3	%	6,789	(286	)	219	3	59	6,784	90.2	%	$	13.66	$	13.75	1	%	$	12.72	$	15.54	22	%
Q2 Activity	7,114	90.5	%	6,437	(395	)	154	57	40	6,293	88.5	%	$	16.97	$	20.76	22	%	$	15.47	$	21.57	39	%
Q3 Activity	7,260	88.7	%	6,439	(621	)	515	—	80	6,413	88.3	%	$	14.06	$	14.81	5	%	$	11.64	$	15.90	37	%
					(1,302	)	888	60	179				$	14.61	$	15.87	9	%	$	12.76	$	17.08	34	%

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 3Q’17 Page 15

Leasing Rate Activity Summary
For the Three Months Ended
September 30, 2017
	Renewals											Expansions											New
	SF (000’s)	Cash Net Rent /SF					Straight-lined Net Rent /SF					SF (000’s)	Cash Net Rent /SF					Straight-lined Net Rent /SF					SF (000’s)	Cash Net Rent /SF					Straight-lined Net Rent /SF
Markets		Expiring		Activity			Expiring		Activity				Expiring		Activity			Expiring		Activity				Expiring		Activity			Expiring		Activity
Austin	12	$	23.05	$	27.83		$	22.53	$	27.87		—	$	—	$	—		$	—	$	—		38	$	22.74	$	26.74		$	22.89	$	27.38
Dallas/Fort Worth	102	$	12.90	$	14.99		$	12.14	$	15.44		—	$	—	$	—		$	—	$	—		8	$	15.82	$	14.58		$	14.51	$	14.27
Houston	11	$	18.55	$	19.10		$	16.85	$	18.05		—	$	—	$	—		$	—	$	—		26	$	15.76	$	14.79		$	13.71	$	17.27
Charlotte	381	$	12.67	$	12.69		$	9.39	$	13.99		—	$	—	$	—		$	—	$	—		8	$	17.78	$	24.00		$	17.78	$	25.55
Nashville	—	$	—	$	—		$	—	$	—		—	$	—	$	—		$	—	$	—		—	$	—	$	—		$	—	$	—
Other	9	$	22.28	$	21.69		$	18.74	$	23.91		—	$	—	$	—		$	—	$	—		—	$	—	$	—		$	—	$	—
Total	515	$	13.25	$	13.79		$	10.56	$	14.86		—	$	—	$	—		$	—	$	—		80	$	19.28	$	21.36		$	18.56	$	22.60
Percentage increase (decrease)				4		%			41		%				—		%			—		%				11		%			22		%
Year-To-Date Summary:
Total Portfolio
Q1 Activity	219	$	12.20	$	11.90		$	11.66	$	13.90		3	$	29.92	$	30.54		$	28.10	$	28.25		59	$	19.32	$	20.87		$	16.91	$	23.19
Q2 Activity	154	$	16.28	$	18.10		$	14.69	$	19.55		57	$	21.07	$	27.37		$	19.71	$	27.18		40	$	13.47	$	21.19		$	12.08	$	21.01
Q3 Activity	515	$	13.25	$	13.79		$	10.56	$	14.86		—	$	—	$	—		$	—	$	—		80	$	19.28	$	21.36		$	18.56	$	22.60
	888	$	13.52	$	14.07		$	11.55	$	15.44		60	$	21.52	$	27.53		$	20.13	$	27.24		179	$	18.00	$	21.16		$	16.57	$	22.44
Percentage increase (decrease)				4		%			34		%				28		%			35		%				18		%			35		%
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 3Q’17 Page 16

Lease Expirations
For Four Quarters From October 1, 2017
(in thousands, except per SF data)
	Market	Month to Month		4Q'17		1Q'18		2Q'18		3Q'18		Grand Total
	By Square Foot
	Austin	—		—		16		4		11		31
	Dallas/Fort Worth	—		2		18		56		20		96
	Houston	—		11		2		14		5		32
	Charlotte	—		1		8		—		3		12
	Nashville	8		4		—		—		—		12
	Other	2		—		—		—		—		2
	Total	10		18		44		74		39		185
	By Annualized Expiring Rentals
	Austin	$	—	$	—	$	664	$	176	$	449	$	1,289
	Dallas/Fort Worth	2		86		581		1,471		525		2,665
	Houston	1		278		66		529		153		1,027
	Charlotte	—		26		300		—		114		440
	Nashville	158		78		—		—		—		236
	Other	69		—		—		—		—		69
	Total	$	230	$	468	$	1,611	$	2,176	$	1,241	$	5,726
	By Expiring Rent Per SF
	Austin	$	—	$	—	$	42.35	$	40.75	$	40.05	$	41.30
	Dallas/Fort Worth	$	—	$	39.74	$	31.81	$	26.49	$	26.53	$	27.83
	Houston	$	—	$	24.34	$	37.97	$	37.48	$	31.64	$	31.99
	Charlotte	$	—	$	32.40	$	36.10	$	—	$	45.35	$	37.87
	Nashville	$	19.63	$	19.17	$	—	$	—	$	—	$	19.48
	Other	$	31.33	$	—	$	—	$	—	$	—	$	31.33
	Total	$	23.00	$	26.00	$	36.61	$	29.41	$	31.82	$	30.95
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.

Supplemental Operating and Financial Data 3Q’17 Page 17

Lease Expirations
Annually From October 1, 2017
(in thousands, except percentage and per SF data)
	Market	2017			2018			2019			2020			2021			2022			2023			2024			2025			2026			2027+			Grand Total
	By Square Foot
	Austin	—			31			105			116			74			227			262			143			71			207			126			1,362
	Dallas/Fort Worth	2			210			99			146			74			42			149			24			—			375			383			1,504
	Houston	11			27			315			290			255			124			85			272			55			256			49			1,739
	Charlotte	1			12			111			23			331			16			81			37			8			4			230			854
	Nashville	12			—			3			2			59			14			—			4			22			—			200			316
	Other	2			—			39			300			104			62			11			9			9			—			100			638
	Total	28			280			672			877			897			485			588			489			165			842			1,088			6,413
	As a % of Occupied SF	—		%	4		%	10		%	14		%	14		%	8		%	9		%	8		%	3		%	13		%	17		%	100		%
	As a % of Total NRA	—		%	4		%	9		%	12		%	12		%	7		%	8		%	7		%	2		%	12		%	15		%	88		%
	By Annualized Expiring Rentals
	Austin	$	—		$	1,289		$	4,357		$	4,762		$	3,320		$	9,834		$	10,700		$	6,137		$	3,393		$	9,564		$	5,940		$	59,296
	Dallas/Fort Worth	88			5,177			2,552			4,643			2,724			1,185			4,340			802			—			10,541			14,401			46,453
	Houston	279			1,016			12,755			9,598			9,060			4,216			3,391			11,913			1,834			10,903			1,463			66,428
	Charlotte	26			472			2,759			793			8,844			612			2,958			533			423			180			8,341			25,941
	Nashville	236			—			67			44			1,191			295			—			87			534			—			4,627			7,081
	Other	69			—			958			8,981			2,919			2,429			432			369			377			—			4,115			20,649
	Total	$	698		$	7,954		$	23,448		$	28,821		$	28,058		$	18,571		$	21,821		$	19,841		$	6,561		$	31,188		$	38,887		$	225,848
	As a % of Total Annualized Expiring Rentals	—		%	4		%	10		%	13		%	12		%	8		%	10		%	9		%	3		%	14		%	17		%	100		%
	By Expiring Rent Per SF
	Austin	$	—		$	41.30		$	41.28		$	40.94		$	44.81		$	43.53		$	40.87		$	43.15		$	48.40		$	46.27		$	47.01		$	43.59
	Dallas/Fort Worth	$	40.57		$	24.67		$	25.78		$	31.74		$	36.91		$	28.07		$	29.24		$	34.10		$	—		$	28.12		$	37.64		$	30.91
	Houston	$	24.45		$	37.89		$	40.40		$	32.99		$	35.52		$	33.81		$	40.31		$	43.87		$	33.94		$	42.52		$	29.88		$	38.18
	Charlotte	$	32.71		$	38.91		$	24.98		$	34.19		$	26.68		$	38.68		$	36.47		$	14.52		$	51.80		$	47.84		$	36.19		$	30.38
	Nashville	$	19.48		$	—		$	20.50		$	20.75		$	20.47		$	21.37		$	—		$	21.14		$	23.81		$	—		$	23.14		$	22.41
	Other	$	31.33		$	—		$	24.86		$	29.89		$	28.15		$	38.88		$	37.87		$	39.01		$	41.17		$	—		$	41.10		$	32.39
	Total	$	24.93		$	28.41		$	34.89		$	32.86		$	31.28		$	38.29		$	37.11		$	40.57		$	39.76		$	37.04		$	35.74		$	35.22
	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.

Supplemental Operating and Financial Data 3Q’17 Page 18

Occupancy Trends
	Rentable SF (000’s)	Occupancy %
Market	30-Sep-17	30-Sep-17		30-Jun-17		31-Mar-17		31-Dec-16		30-Sep-16
Austin	1,434	95.0	%	95.3	%	96.8	%	97.0	%	96.6	%
Dallas/Fort Worth	1,674	89.8	%	90.9	%	88.1	%	87.6	%	87.1	%
Houston	2,234	77.8	%	77.9	%	84.1	%	85.3	%	84.9	%
Charlotte	891	95.8	%	95.4	%	94.2	%	91.8	%	91.2	%
Nashville	361	87.5	%	87.5	%	88.6	%	90.9	%	89.2	%
Other	666	95.8	%	95.9	%	96.0	%	95.3	%	95.5	%
Total	7,260	88.3	%	88.5	%	90.0	%	90.1	%	89.6	%
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.

(Rendering)

Supplemental Operating and Financial Data 3Q’17 Page 19

Leasing Cost Summary
For the Three Months Ended
September 30, 2017
			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	12	1.1	$	2.58	$	0.13	$	2.71	$	2.44	$	0.06	$	2.50
Dallas/Fort Worth	102	4.2	$	6.76	$	12.07	$	18.83	$	1.47	$	1.63	$	3.11
Houston	11	4.5	$	7.13	$	18.84	$	25.97	$	1.61	$	3.25	$	4.86
Charlotte	381	3.0	$	1.32	$	0.03	$	1.35	$	0.44	$	0.01	$	0.45
Nashville	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Other	9	—	$	—	$	—	$	—	$	—	$	—	$	—
Total Current Quarter	515	3.3	$	2.70	$	3.26	$	5.96	$	0.82	$	0.99	$	1.81
Q2 2017	154	5.2	$	9.61	$	21.67	$	31.28	$	1.83	$	4.13	$	5.96
Q1 2017	219	11.2	$	11.95	$	24.20	$	36.15	$	1.06	$	2.16	$	3.22
Year to Date 2017	888	5.6	$	6.18	$	11.61	$	17.79	$	1.06	$	1.82	$	2.88
Year Ended 2016	554	4.0	$	4.50	$	9.74	$	14.24	$	1.12	$	2.39	$	3.51
Expansion
Market
Austin	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Dallas/Fort Worth	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Houston	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Charlotte	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Nashville	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Other	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Total Current Quarter	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Q2 2017	57	5.7	$	14.05	$	21.00	$	35.05	$	2.46	$	3.68	$	6.14
Q1 2017	3	9.9	$	3.74	$	33.05	$	36.79	$	0.38	$	3.35	$	3.73
Year to Date 2017	60	5.9	$	13.53	$	21.60	$	35.13	$	2.36	$	3.66	$	6.02
Year Ended 2016	211	7.6	$	11.65	$	14.40	$	26.05	$	1.57	$	2.00	$	3.57
New
Market
Austin	38	6.4	$	15.82	$	20.54	$	36.36	$	2.51	$	3.12	$	5.63
Dallas/Fort Worth	8	3.3	$	5.60	$	18.84	$	24.44	$	1.70	$	5.71	$	7.41
Houston	26	9.4	$	16.41	$	64.02	$	80.43	$	1.77	$	6.44	$	8.21
Charlotte	8	5.1	$	11.05	$	65.79	$	76.84	$	2.17	$	12.90	$	15.07
Nashville	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Other	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Total Current Quarter	80	6.9	$	14.51	$	39.03	$	53.54	$	2.09	$	5.63	$	7.72
Q2 2017	40	6.1	$	11.63	$	35.54	$	47.17	$	1.92	$	5.86	$	7.78
Q1 2017	59	11.0	$	21.58	$	59.76	$	81.34	$	1.96	$	5.44	$	7.40
Year to Date 2017	179	8.1	$	16.20	$	45.08	$	61.28	$	2.01	$	5.62	$	7.63
Year Ended 2016	414	6.8	$	12.24	$	28.00	$	40.24	$	1.81	$	4.13	$	5.94
Total
Current Quarter	595	3.8	$	4.29	$	8.06	$	12.35	$	1.14	$	2.13	$	3.27
Q2 2017	251	5.5	$	10.94	$	23.73	$	34.67	$	2.00	$	4.32	$	6.32
Q1 2017	281	11.1	$	13.88	$	31.76	$	45.64	$	1.24	$	2.85	$	4.09
Year to Date 2017	1,127	6.0	$	8.16	$	17.46	$	25.62	$	1.36	$	2.92	$	4.28
Year Ended 2016	1,179	5.6	$	8.50	$	16.99	$	25.49	$	1.50	$	3.01	$	4.51
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 3Q’17 Page 20

	Development, Leasing, and
	Capital Expenditures Summary
	(in thousands)
		For the Three Months Ended
		30-Sep-17		30-Jun-17		31-Mar-17		31-Dec-16		30-Sep-16
	Recurring capital expenditures
	Leasing costs	$	9,065	$	4,140	$	5,009	$	7,369	$	4,636
	Building improvements	1,206		995		1,607		3,533		620
	Subtotal recurring capital expenditures	10,271		5,135		6,616		10,902		5,256
	Non-recurring capital expenditures
	Building improvements (1)	150		—		—		465		152
	Leasing costs (2)	3,218		2,942		1,857		2,167		1,268
	Development (3)	18,389		18,778		15,313		11,703		11,425
	Redevelopment (4)	603		1,829		2,588		4,565		5,940
	Subtotal non-recurring capital expenditures	22,360		23,549		19,758		18,900		18,785
	Total capital expenditures	$	32,631	$	28,684	$	26,374	$	29,802	$	24,041
(1)	Non-recurring building improvements include costs identified as deferred capital needs at the acquisition of a property and costs incurred to improve the Eldridge Properties as a result of flood-related damages, which has been identified as an unusual event. Costs incurred to improve the Eldridge Properties for such damages were as follows:
		$	150	$	—	$	—	$	—	$	—
(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
(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.
Notes:
All amounts represent TIER REIT’s ownership %.
Leasing costs reimbursed to us by tenants when tenant improvement allowances have been exceeded are excluded from the above amounts.

Supplemental Operating and Financial Data 3Q’17 Page 21

Potential Future Development Sites
September 30, 2017
	Market (submarket)		Approximate Rentable Square Feet	Month of Acquisition	Cost Basis (in millions)
Project		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
Legacy District Two and Legacy District Three (95%) (1)	Dallas (Plano - Legacy)	4.0	600,000	Jun-15	$	9.4	Office building(s)
Domain 9 and Domain 10	Austin (Domain)	6.2	500,000-600,000	Jul-15	$	14.0	Office building(s)
Domain 12	Austin (Domain)	3.2	300,000	Jul-15	$	10.5	Office building
Domain D & G	Austin (Domain)	5.6	200,000-300,000	Jul-15	$	9.5	Office building and/or mixed-use development
(1) The cost basis for this less than wholly-owned project represents 100%.

Supplemental Operating and Financial Data 3Q’17 Page 22

Summary Development Activity
September 30, 2017
							Estimated Total Cost (in millions) (1)	Cost to Date (in millions) (1)	Estimated Stabilized NOI (In millions)
Project	Market	Square feet (in thousands)	% Leased	Start Date	Shell Completion Date	Estimated Cost per SF
In Process:
Domain 11	Austin	324	98%	2Q’17	4Q’18	$352	$114.2	$23.7	$11.1
Third + Shoal (1) (2)	Austin	345	67%	1Q’17	3Q’18	$449	$155.0	$66.1	$14.7
Recently Completed:
Domain 8 (50%) (1) (2)	Austin	291	100%	3Q’15	2Q’17	$290	$84.4	$75.6	$9.3
(1) Excludes basis adjustment of $4.7 million to date and $5.8 million estimated in total for Third + Shoal. Excludes basis adjustment of $4.3 million in total for Domain 8.
(2) We own 47.5% of Third + Shoal and 50.0% of Domain 8. The costs above represent 100%.

Supplemental Operating and Financial Data 3Q’17 Page 23

Property Under Development

Domain 11

Austin, Texas

(Rendering)

Property Description

Domain 11 is a 16- story, Class A office building currently under development located within The Domain in Austin, Texas.  It offers 316,000 square feet of office space and 8,000 square feet of ground floor retail, along with dramatic views of the surrounding Domain community and Texas Hill Country.  Domain 11 was designed to achieve a minimum LEED Silver and Energy Star designations. The available office space is 100% pre-leased to HomeAway (a subsidiary of Expedia, Inc.), which represents 98% of the total rentable space.

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 1.8 million square feet of retail, 775 hotel rooms, and up to 5,000 apartment units.

Property Facts

Submarket	The Domain
Floors	9 Floors Rentable Space/7 Floors Parking
Approximate Rentable SF	324,000
Estimated Operating Expenses per SF	$17.60
Estimated Shell Delivery Date	4Q’18
Estimated Project Cost at Completion	$114,200,000
Percentage Owned	100	%
Percentage Leased	98.0	%

Supplemental Operating and Financial Data 3Q’17 Page 24

Property Under Development

Third + Shoal

Austin, Texas

(Rendering)

Property Description

Third + Shoal is a 29-story, Class A office building currently under development located in the center of Austin’s “New Downtown” district. The building is being constructed of poured in place concrete along with a glass curtain wall system. The building is 67% leased to Facebook, Inc.

Property Highlights

Located in Austin’s “New Downtown” district surrounded by restaurants, entertainment, and residences, just steps away from outdoor amenities such as The Lance Armstrong Bikeway, Shoal Creek Trail, and Lady Bird Lake Hike and Bike Trail. The building will feature floor-to-ceiling glass windows, direct access balconies, and a 4,000 square foot common roof terrace overlooking Lady Bird Lake and the Austin Hill Country.

Submarket	Austin CBD
Floors	17 Floors Rentable Space/12 Floors Parking
Approximate Rentable SF	345,000
Estimated Operating Expenses per SF	$22.13
Estimated Shell Delivery Date	3Q’18
Estimated Project Cost at Completion (1)	$155,000,000
Percentage Owned	47.5	%
Percentage Leased	67.0	%
(1) Excludes $5.8 million basis adjustment.

Supplemental Operating and Financial Data 3Q’17 Page 25

Acquisition and Disposition Activities
For the Twelve Months Ended September 30, 2017
		Number of Properties	Square Feet (in thousands) (at 100%)	Transaction Date	Price (in thousands)
	Location
Acquisitions
Domain 2 & Domain 7 (1)	Austin, TX	2	337	1/4/2017	$	91,351
Legacy District One	Plano, TX	1	319	6/23/2017	$	123,300
		3	656
Dispositions
801 Thompson	Rockville, MD	1	51	10/27/2016	$	4,900
Wanamaker Building (2)	Philadelphia, PA	1	1,390	1/17/2017	$	114,300
Buena Vista Plaza	Burbank, CA	1	115	1/18/2017	$	52,500
Three Parkway	Philadelphia, PA	1	561	3/1/2017	$	95,000
Eisenhower I (3)	Tampa, FL	1	130	3/13/2017	$	31,400
Third + Shoal development (4)	Austin, TX	N/A	N/A	3/31/2017	$	14,955
1325 G Street and the Colorado Building (5)	Washington, D.C.	2	435	4/27/2017	$	25,900
Louisville Portfolio	Louisville, KY	5	678	6/26/2017	$	71,500
		12	3,360
(1) We acquired the remaining 50.16% interest in Domain 2 and Domain 7, increasing our ownership interest in these properties to 100%.
(2) We sold substantially all of our investment in the Wanamaker Building.
(3) The Company may be entitled to receive an additional $3.0 million subject to certain future events.
(4) We sold 50% of our 95% interest in Third + Shoal to an unrelated third party, which resulted in our remaining 47.5% interest in Third + Shoal being deconsolidated.
(5) 1325 G Street and the Colorado Building (two properties in which we held a 10% noncontrolling interest) were sold for a combined contract sales price of $259.0 million (at 100%).

Supplemental Operating and Financial Data 3Q’17 Page 26

Summary of Financing
September 30, 2017
(in thousands, except percentages and number of years)
					Principal			Weighted Average Effective Interest Rate	% of Total
Fixed Rate Debt
Secured mortgage debt					$	191,694		5.35%	25%
Unsecured term loans (1)					525,000			3.31%	66%
Total fixed rate debt					716,694			3.85%	91%
Variable Rate Debt
Unsecured term loan (1)					50,000			2.62%	6%
Unsecured revolving credit facility (2)					23,000			2.67%	3%
Total variable rate debt					73,000			2.64%	9%
Total debt (3)					789,694			3.74%	100%
Unamortized debt issuance costs (4)					(7,308		)
Total notes payable, net					$	782,386
(1) The borrowing rate under $525.0 million of the unsecured term loans has been effectively fixed through the use of interest rate hedges. The remaining portion is variable rate.
(2) Additional borrowings of $242.8 million were available under the credit facility.
(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 that results in an overall effective weighted average interest rate of 4.05%.
(4) Excludes $1.7 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)
2017	$	48,177		6.17%	$	—		—	$	48,177		6.17%	6%
2018	—			—	23,000			2.67%	23,000			2.67%	3%
2019	—			—	300,000			3.00%	300,000			3.00%	38%
2020	—			—	—			—	—			—	—
2021	77,517			5.72%	—			—	77,517			5.72%	10%
Thereafter	66,000			4.30%	275,000			3.52%	341,000			3.67%	43%
Total debt	$	191,694			$	598,000			789,694			3.74%
Unamortized debt issuance costs									(7,308		)
Total notes payable, net									$	782,386
Weighted average maturity in years	3.4				3.3				3.3
(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)
2017	$	48,177		6.17%	$	—		—	$	48,177		6.17%	6%
2018	23,000			2.67%	—			—	23,000			2.67%	3%
2019	300,000			3.00%	—			—	300,000			3.00%	36%
2020	—			—	43,572			3.02%	43,572			3.02%	5%
2021	77,517			5.72%	—			—	77,517			5.72%	9%
Thereafter	341,000			3.67%	—			—	341,000			3.67%	41%
Total debt	789,694				43,572				833,266			3.70%
Unamortized debt issuance costs	(7,308		)		(397		)		(7,705		)
Total notes payable, net	$	782,386			$	43,175			$	825,561
Weighted average maturity in years	3.3				2.8				3.3
(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 3Q’17 Page 27

	Principal Payments by Year
	as of September 30, 2017
	(in thousands, except percentages)
			Stated Interest Rate		Effective Interest Rate
		Maturity					Total			2017			2018			2019			2020			2021			Thereafter
Fifth Third Center		1-Jul-16	6.09	%	6.17	%	$	48,177		$	48,177		$	—		$	—		$	—		$	—		$	—
Unsecured - Revolving Line of Credit		18-Dec-18	2.63	%	2.67	%	23,000			—			23,000			—			—			—			—
Unsecured - Term Loan		18-Dec-19	2.96	%	3.00	%	300,000			—			—			300,000			—			—			—
One BriarLake Plaza		1-Aug-21	5.65	%	5.72	%	77,517			341			1,501			1,589			1,670			72,416			—
Unsecured - Term Loan		30-Jun-22	3.47	%	3.52	%	275,000			—			—			—			—			—			275,000
Legacy District One		01-Jan-23	4.24	%	4.30	%	66,000			—			—			—			—			—			66,000
Total			3.69	%	3.74	%	789,694			48,518			24,501			301,589			1,670			72,416			341,000
Unamortized debt issuance costs (1)							(7,308		)
Consolidated notes payable, net							782,386
Notes associated with investments in unconsolidated entities and excluded from the consolidated balance above (at ownership share):
Domain 8 (50%)		30-Jun-20	2.98	%	3.02	%	43,572			—			—			—			43,572			—			—
Unamortized debt issuance costs							(397		)
Total unconsolidated notes payable, net							$	43,175
Total notes payable			3.65	%	3.70	%	833,266			$	48,518		$	24,501		$	301,589		$	45,242		$	72,416		$	341,000
Total notes payable, net							$	825,561
% of principal payments due by year							100		%	6		%	3		%	36		%	5		%	9		%	41		%
(1)	Excludes $1.7 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 3Q’17 Page 28

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 that 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 and affect the comparability of FFO across periods. 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 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 NOI and Same Store Cash NOI

Same Store 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 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 that is accounted for using the equity method.  We view Same Store 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 3Q’17 Page 29

Same Store NOI and Same Store Cash NOI presented by us may not be comparable to Same Store NOI or Same Store Cash NOI reported by other REITs that do not define Same Store 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 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 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 3Q’17 Page 30