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, 2018

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, 2018, we owned interests in 18 operating office properties with approximately 6.7 million rentable square feet and three development properties that will consist of approximately 989,000 rentable square feet. As of September 30, 2018, our operating properties are located in six 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 and Director
Scott W. Fordham	Dallas E. Lucas
Chief Executive Officer and Director	President and Chief Operating Officer
R. Kent Griffin, Jr.	James E. Sharp
Independent Director	Chief Financial Officer and Treasurer
Thomas M. Herzog	William J. Reister
Independent Director	Chief Investment Officer and Executive Vice President
Dennis J. Martin	Telisa Webb Schelin
Independent Director	Chief Legal Officer, Executive Vice President, and Secretary
Gregory J. Whyte	Hannah Q. Wrenn
Independent Director	Chief Accounting Officer
	R. Heath Johnson
	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	JMP Securities	J.P. Morgan Securities	Robert W. Baird & Co.
John Kim	Robert Stevenson	Mitch Germain	Anthony Paolone	David Rodgers
212.885.4115	646.840.3217	212.906.3546	212.622.6682	216.737.7341

Supplemental Operating and Financial Data

For the Quarter Ended September 30, 2018

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 EBITDAre	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 and Redevelopment Sites	22
Summary of Development Activity	23
Properties Under Development	24-27
Acquisition and Disposition Activities	28
Summary of Financing	29
Principal Payments by Year	30
Definitions of Non-GAAP Financial Measures	31-32

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, develop, or sell certain properties, the value of its assets, its anticipated capital expenditures, and other matters. Words such as “may,” "will," “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “outlook,” “would,” “could,” “should,” “objectives,” “strategies,” “opportunities,” “goals,” “position,” “future,” “vision,” “mission,” “strive,” “project” 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, 2017. 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, 2018

Property Results

• Occupancy at September 30, 2018, was 90.1%, reflecting an increase of 70 basis points from June 30, 2018.

• 120,000 square feet leased - 26,000 square feet of renewals, 19,000 square feet of expansions, and 75,000 square feet of new leasing.

• During the third quarter of 2018, we received $0.7 million in business interruption insurance proceeds related to rent abatements provided in previous periods as a result of Hurricane Harvey. We anticipate we will receive additional business interruption insurance proceeds in subsequent quarters.

Real Estate Activity

• Plaza at MetroCenter was held for sale as of September 30, 2018, and was sold on October 31, 2018, for a contract purchase price of $51.3 million.

• During the third quarter of 2018, we pre-leased 100% of Domain 12. Domain 12 is a development property containing 320,000 rentable square feet located in Austin, Texas.

Capital Markets Activity

• On August 3, 2018, our board of directors authorized a distribution of $0.18 per share of common stock for the third quarter of 2018, that was paid on September 28, 2018.

• On August 15, 2018, we entered into three forward interest rate swaps for a combined notional value of $250.0 million with a maturity date of December 31, 2024. These become effective on October 31, 2019, upon the maturity of two of our outstanding interest rate swaps with a combined notional value of $250.0 million.

• On August 21, 2018, we paid off the $89.7 million loan secured by Domain 8 without penalty. The loan was scheduled to mature in June 2020.

• On August 27, 2018, ownership of Fifth Third Center, located in Columbus, Ohio, was conveyed to the associated lender pursuant to a foreclosure. The transaction was accounted for as a full settlement of the outstanding debt and related interest. As a result, we recognized a gain on troubled debt restructuring of $31.0 million. We recorded an asset impairment loss of $3.4 million related to the disposition of the property.

• In August 2018, we established an additional $125.0 million ATM program for a total of $250.0 million when combined with our May 2017 ATM Program. During the three months ended September 30, 2018, we issued 4,916,095 shares of common stock under our ATM Programs, for proceeds of $114.1 million, net of commissions and issuance costs. Subsequent to September 30, 2018, we issued 130,172 additional shares for net proceeds of $3.1 million, resulting in total net proceeds for the year of $138.0 million.

Subsequent Events

• Development on Domain 10 commenced in October 2018. Domain 10 will contain 300,000 rentable square feet and is located in Austin, Texas, adjacent to our other Domain properties.

• On November 2, 2018, our board of directors authorized a distribution of $0.18 per share of common stock for the fourth quarter of 2018, that will be paid on December 27, 2018.

Supplemental Operating and Financial Data 3Q’18 Page 1

Financial Highlights
(in thousands, except per share data, effective rent data, percentages, and number of properties)
	30-Sep-18			30-Sep-17			30-Sep-18			30-Jun-18			31-Mar-18			31-Dec-17			30-Sep-17
Portfolio Summary:
Total operating office properties	18			20			18			18			18			20			20
Rentable square feet (100%) (operating properties)	6,657			7,405			6,657			6,657			6,657			7,405			7,405
Rentable square feet (own %) (operating properties)	6,633			7,260			6,633			6,633			6,633			7,260			7,260
Occupancy %	90.1		%	88.3		%	90.1		%	89.4		%	89.4		%	89.1		%	88.3		%
Executed % SF leased	90.4		%	89.0		%	90.4		%	89.8		%	89.6		%	89.7		%	89.0		%
Economic % SF leased	86.2		%	82.4		%	86.2		%	85.3		%	86.1		%	84.4		%	82.4		%
Average effective rent/square foot	$	32.89		$	29.58		$	32.89		$	32.60		$	32.55		$	30.33		$	29.58
	Nine Months Ended						Three Months Ended
	30-Sep-18			30-Sep-17			30-Sep-18			30-Jun-18			31-Mar-18			31-Dec-17			30-Sep-17
Financial Results:
Revenue	$	162,965		$	161,835		$	54,832		$	53,990		$	54,143		$	54,626		$	50,920
Property related expenses	(38,812		)	(41,790		)	(13,262		)	(12,395		)	(13,155		)	(14,131		)	(13,170		)
Real estate taxes	(27,057		)	(25,752		)	(9,229		)	(9,074		)	(8,754		)	(8,512		)	(8,439		)
Property management fees	(262		)	(181		)	(80		)	(97		)	(85		)	(51		)	(49		)
NOI	$	96,834		$	94,112		$	32,261		$	32,424		$	32,149		$	31,932		$	29,262
Base rent	$	106,433		$	116,002		$	35,759		$	35,556		$	35,118		$	34,122		$	36,002
Free rent	$	(4,298	)	$	(8,040	)	$	(1,218	)	$	(1,776	)	$	(1,304	)	$	(1,570	)	$	(2,288	)
Net income (loss) attributable to common stockholders	$	22,758		$	94,161		$	22,645		$	(8,277	)	$	8,390		$	(9,875	)	$	(8,041	)
Diluted income (loss) per common share (1)	$	0.46		$	1.95		$	0.43		$	(0.17	)	$	0.17		$	(0.21	)	$	(0.17	)
FFO attributable to common stockholders	$	79,371		$	52,918		$	50,678		$	18,804		$	9,889		$	19,020		$	15,885
Diluted FFO per common share	$	1.59		$	1.10		$	0.96		$	0.39		$	0.20		$	0.39		$	0.33
FFO attributable to common stockholders, excluding certain items	$	59,085		$	55,748		$	20,070		$	19,521		$	19,494		$	19,374		$	16,508
Diluted FFO, excluding certain items, per common share	$	1.18		$	1.16		$	0.38		$	0.40		$	0.40		$	0.40		$	0.34
Adjusted EBITDAre	$	82,969		$	81,865		$	26,407		$	28,359		$	28,203		$	26,321		$	26,181
Weighted average common shares outstanding - basic	49,092			47,532			51,900			47,684			47,645			47,554			47,550
Weighted average common shares outstanding - diluted	49,950			47,956			52,617			48,534			48,300			48,207			48,160
Selected Additional Trend Information:
Renewal % based on square feet	67		%	73		%	61		%	74		%	64		%	30		%	83		%
Distributions declared on common shares	$	26,925		$	25,829		$	9,671		$	8,628		$	8,626		$	8,612		$	8,612
Annualized distribution yield (2)	3.0		%	3.7		%	3.0		%	3.0		%	3.9		%	3.5		%	3.7		%

_______________________________

(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 31-32.

Supplemental Operating and Financial Data 3Q’18 Page 2

Financial Highlights (continued)
(in thousands, except stock prices, percentages, and ratios)
	30-Sep-18			30-Sep-17			30-Sep-18			30-Jun-18			31-Mar-18			31-Dec-17			30-Sep-17
Selected Balance Sheet Items:
Total book value of real estate	$	1,386,255		$	1,325,536		$	1,386,255		$	1,434,814		$	1,430,355		$	1,275,953		$	1,325,536
Cash and cash equivalents	$	5,192		$	10,959		$	5,192		$	8,359		$	10,183		$	13,800		$	10,959
Unconsolidated cash and cash equivalents (at ownership %)	$	550		$	2,495		$	550		$	327		$	282		$	1,435		$	2,495
Restricted cash	$	10,232		$	13,323		$	10,232		$	14,086		$	12,565		$	8,510		$	13,323
Total assets	$	1,662,342		$	1,581,288		$	1,662,342		$	1,696,121		$	1,688,999		$	1,581,138		$	1,581,288
Mortgage debt	$	142,162		$	191,694		$	142,162		$	280,311		$	280,689		$	191,339		$	191,694
Revolving credit facility and term loans	$	591,000		$	598,000		$	591,000		$	608,000		$	612,000		$	610,000		$	598,000
Unconsolidated debt (at ownership %)	$	26,137		$	43,572		$	26,137		$	21,248		$	16,239		$	52,377		$	43,572
Total liabilities	$	836,797		$	889,465		$	836,797		$	1,001,531		$	1,001,439		$	903,567		$	889,465
Capitalization:
Shares of common stock outstanding	53,491			47,552			53,491			48,575			47,656			47,623			47,552
Restricted stock units outstanding	351			228			351			351			356			228			228
Shares of restricted stock outstanding	260			291			260			260			265			181			291
	54,102			48,071			54,102			49,186			48,277			48,032			48,071
High stock price	$	24.98		$	19.50		$	24.98		$	24.22		$	20.51		$	20.72		$	19.50
Low stock price	$	17.04		$	15.96		$	22.66		$	18.06		$	17.04		$	18.83		$	16.67
Average closing stock price	$	21.18		$	17.81		$	23.67		$	20.81		$	19.01		$	19.71		$	18.39
Closing stock price	$	24.10		$	19.30		$	24.10		$	23.78		$	18.48		$	20.39		$	19.30
Market capitalization (1)	$	1,303,858		$	927,770		$	1,303,858		$	1,169,643		$	892,159		$	979,372		$	927,770
Total debt (2)	$	759,299		$	833,266		$	759,299		$	909,559		$	908,928		$	853,716		$	833,266
Net debt (3)	$	753,557		$	819,812		$	753,557		$	900,873		$	898,463		$	838,481		$	819,812
Total capitalization	$	2,063,157		$	1,761,036		$	2,063,157		$	2,079,202		$	1,801,087		$	1,833,088		$	1,761,036
	Nine Months Ended						Three Months Ended
	30-Sep-18			30-Sep-17			30-Sep-18			30-Jun-18			31-Mar-18			31-Dec-17			30-Sep-17
Ratios:
NOI margin % (4)	59.4		%	58.2		%	58.8		%	60.1		%	59.4		%	58.5		%	57.5		%
Normalized fixed charge coverage (5)	3.02			2.99			3.06			3.00			3.00			2.83			2.86
Normalized interest coverage (5)	3.13			3.12			3.14			3.12			3.13			2.94			2.97
Net debt/adjusted annualized estimated full period EBITDAre from properties owned at period end (5)	N/A			N/A			7.15x			7.94x			8.34x			7.96x			7.83x
Net debt/adjusted annualized estimated full period EBITDAre from properties owned at period end, including development properties (5) (6)	N/A			N/A			6.22x			7.13x			7.67x			7.47x			7.45x
(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’18 Page 3

Consolidated Balance Sheets
(in thousands, except share and per share data)
		30-Sep-18			30-Jun-18			31-Mar-18			31-Dec-17			30-Sep-17
Assets
	Real estate
	Land	$	150,473		$	156,517		$	156,577		$	139,951		$	140,959
	Land held for development	45,059			45,059			45,059			45,059			45,059
	Buildings and improvements, net	1,097,613			1,160,273			1,177,433			1,061,418			1,122,072
	Real estate under development	93,110			72,965			51,286			29,525			17,446
	Total real estate	1,386,255			1,434,814			1,430,355			1,275,953			1,325,536
	Cash and cash equivalents	5,192			8,359			10,183			13,800			10,959
	Restricted cash	10,232			14,086			12,565			8,510			13,323
	Accounts receivable, net	69,592			80,755			76,385			81,129			82,737
	Prepaid expenses and other assets	19,357			17,124			14,238			28,112			20,115
	Investments in unconsolidated entities	32,112			31,714			31,314			31,852			33,977
	Deferred financing fees, net	2,985			3,211			3,426			1,387			1,735
	Acquired above-market leases, net	20			180			288			419			543
	Other lease intangibles, net	103,511			105,878			110,245			86,628			90,547
	Other intangible assets, net	—			—			—			—			1,816
	Assets associated with real estate held for sale	33,086			—			—			53,348			—
Total assets		$	1,662,342		$	1,696,121		$	1,688,999		$	1,581,138		$	1,581,288
Liabilities and equity
Liabilities
	Mortgage debt	$	142,162		$	280,311		$	280,689		$	191,339		$	191,694
	Unsecured term loans	575,000			575,000			575,000			575,000			575,000
	Unsecured revolving credit facility	16,000			33,000			37,000			35,000			23,000
	Unamortized debt issuance costs	(2,029		)	(2,051		)	(2,156		)	(6,801		)	(7,308		)
	Total notes payable, net	731,133			886,260			890,533			794,538			782,386
	Accounts payable and accrued liabilities	74,560			82,816			76,144			81,166			78,174
	Acquired below-market leases, net	24,312			25,910			27,684			17,942			19,462
	Other liabilities	6,471			6,545			7,078			7,567			9,443
	Obligations associated with real estate held for sale	321			—			—			2,354			—
Total liabilities		836,797			1,001,531			1,001,439			903,567			889,465
Commitments and contingencies
Equity
	Preferred stock	—			—			—			—			—
	Convertible stock	—			—			—			—			—
	Common stock	5			5			5			5			5
	Additional paid-in capital	2,747,825			2,632,635			2,610,288			2,609,540			2,609,361
	Cumulative distributions and net loss attributable to common stockholders	(1,940,492		)	(1,953,466		)	(1,936,561		)	(1,936,960		)	(1,918,473		)
	Accumulated other comprehensive income	15,262			12,462			10,479			4,218			257
	Stockholders’ equity	822,600			691,636			684,211			676,803			691,150
	Noncontrolling interests	2,945			2,954			3,349			768			673
Total equity		825,545			694,590			687,560			677,571			691,823
Total liabilities and equity		$	1,662,342		$	1,696,121		$	1,688,999		$	1,581,138		$	1,581,288
Common stock, number of shares issued and outstanding		53,490,819			48,574,724			47,655,669			47,623,324			47,552,014

Supplemental Operating and Financial Data 3Q’18 Page 4

	Consolidated Statements of Operations
	(in thousands, except share and per share amounts)
		Nine Months Ended						Three Months Ended
		30-Sep-18			30-Sep-17			30-Sep-18			30-Jun-18			31-Mar-18			31-Dec-17			30-Sep-17
Revenue
	Rental income	$	155,599		$	152,186		$	52,570		$	51,088		$	51,941		$	52,362		$	47,333
	Straight-line rent and lease incentive revenue	1,906			6,334			453			862			591			978			2,280
	Above- and below-market rent amortization	4,474			2,863			1,533			1,665			1,276			1,032			1,075
	Lease termination fees	986			452			276			375			335			254			232
	Total revenue	162,965			161,835			54,832			53,990			54,143			54,626			50,920
Expenses
	Property related expenses	38,812			41,790			13,262			12,395			13,155			14,131			13,170
	Real estate taxes	27,057			25,752			9,229			9,074			8,754			8,512			8,439
	Property management fees	262			181			80			97			85			51			49
	Total property operating expenses	66,131			67,723			22,571			21,566			21,994			22,694			21,658
	Interest expense	22,498			22,851			6,782			8,011			7,705			7,534			7,516
	Interest rate hedge ineffectiveness expense (income)	—			9			—			—			—			(262		)	8
	Amortization of deferred financing costs	1,121			2,561			359			358			404			883			882
	Total interest expense	23,619			25,421			7,141			8,369			8,109			8,155			8,406
	Asset impairment losses	3,418			—			3,418			—			—			5,250			—
	General and administrative	16,008			16,490			5,128			5,377			5,503			4,956			5,157
	Real estate depreciation and amortization	76,281			70,641			24,770			27,011			24,500			23,655			23,653
	Depreciation and amortization - non-real estate assets	303			325			64			123			116			133			132
	Total expenses	185,760			180,600			63,092			62,446			60,222			64,843			59,006
	Interest and other income	644			1,271			49			550			45			88			170
	Loss on early extinguishment of debt	(8,988		)	(545		)	—			—			(8,988		)	—			—
	Gain on troubled debt restructuring	31,006			—			31,006			—			—			—			—
Income (loss) before income taxes, equity in operations
	of investments, and gains (losses)	(133		)	(18,039		)	22,795			(7,906		)	(15,022		)	(10,129		)	(7,916		)
	Provision for income taxes	(637		)	(297		)	(228		)	(214		)	(195		)	(171		)	(202		)
	Equity in operations of investments	287			6,367			—			—			287			32			67
Income (loss) before gains (losses)		(483		)	(11,969		)	22,567			(8,120		)	(14,930		)	(10,268		)	(8,051		)
Gain (loss) on sale of assets		11,924			92,012			—			(90		)	12,014			384			—
Gain (loss) on remeasurement of investment in unconsolidated entities		11,090			14,168			—			(152		)	11,242			—			—
Net income (loss)		22,531			94,211			22,567			(8,362		)	8,326			(9,884		)	(8,051		)
	Noncontrolling interests	227			(50		)	78			85			64			9			10
Net income (loss) attributable to common stockholders		$	22,758		$	94,161		$	22,645		$	(8,277	)	$	8,390		$	(9,875	)	$	(8,041	)
Weighted average common shares outstanding - basic		49,091,962			47,532,432			51,899,779			47,684,152			47,645,050			47,553,564			47,549,635
Weighted average common shares outstanding - diluted (1)		49,950,441			47,956,167			52,616,570			47,684,152			48,299,882			47,553,564			47,549,635
Basic income (loss) per common share		$	0.46		$	1.97		$	0.43		$	(0.17	)	$	0.18		$	(0.21	)	$	(0.17	)
Diluted income (loss) per common share (1)		$	0.46		$	1.95		$	0.43		$	(0.17	)	$	0.17		$	(0.21	)	$	(0.17	)
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’18 Page 5

Calculations of FFO and Additional Information
(in thousands, except per share data)
		Nine Months Ended						Three Months Ended
		30-Sep-18			30-Sep-17			30-Sep-18			30-Jun-18			31-Mar-18			31-Dec-17			30-Sep-17
Net income (loss)		$	22,531		$	94,211		$	22,567		$	(8,362	)	$	8,326		$	(9,884	)	$	(8,051	)
Noncontrolling interests		227			(50		)	78			85			64			9			10
Net income (loss) attributable to common stockholders		22,758			94,161			22,645			(8,277		)	8,390			(9,875		)	(8,041		)
Adjustments (1):
	Real estate depreciation and amortization from consolidated properties	76,281			70,641			24,770			27,011			24,500			23,655			23,653
	Real estate depreciation and amortization from unconsolidated properties	391			986			—			—			391			391			289
	Real estate depreciation and amortization - noncontrolling interest	(1,759		)	—			(544		)	(782		)	(433		)	—			—
	Impairment of depreciable real estate assets	3,418			—			3,418			—			—			5,250			—
	Loss (gain) on sale of depreciable real estate	(11,924		)	(98,725		)	—			90			(12,014		)	(384		)	—
	Loss (gain) on remeasurement of investment in unconsolidated entities	(11,090		)	(14,168		)	—			152			(11,242		)	—			—
	Noncontrolling interests	1,296			23			389			610			297			(17		)	(16		)
FFO attributable to common stockholders		79,371			52,918			50,678			18,804			9,889			19,020			15,885
Adjustments (1):
	Severance charges	127			451			—			108			19			—			—
	Interest rate hedge ineffectiveness expense (income) (2)	—			9			—			—			—			(262		)	8
	Loss on early extinguishment of debt	8,988			545			—			—			8,988			—			—
	Gain on troubled debt restructuring	(31,006		)	—			(31,006		)	—			—			—			—
	Default interest (3)	1,599			1,827			388			609			602			616			616
	Noncontrolling interests	6			(2		)	10			—			(4		)	—			(1		)
FFO attributable to common stockholders, excluding certain items		$	59,085		$	55,748		$	20,070		$	19,521		$	19,494		$	19,374		$	16,508
Recurring capital expenditures (1)		$	(11,781	)	$	(22,022	)	$	(3,252	)	$	(2,337	)	$	(6,192	)	$	(6,109	)	$	(10,271	)
Straight-line rent adjustments (1)		$	(3,283	)	$	(8,655	)	$	(769	)	$	(1,165	)	$	(1,349	)	$	(2,088	)	$	(3,757	)
Above- and below-market rent amortization (1)		$	(4,382	)	$	(2,865	)	$	(1,503	)	$	(1,634	)	$	(1,245	)	$	(1,032	)	$	(1,075	)
Amortization of deferred financing costs (1)		$	1,153		$	2,724		$	359		$	358		$	436		$	915		$	918
Amortization of restricted shares and units		$	3,370		$	3,010		$	1,206		$	1,164		$	1,000		$	1,071		$	1,077
Depreciation and amortization - non-real estate assets		$	303		$	325		$	64		$	123		$	116		$	133		$	132
Weighted average common shares outstanding - basic		49,092			47,532			51,900			47,684			47,645			47,554			47,550
Weighted average common shares outstanding - diluted		49,950			47,956			52,617			48,534			48,300			48,207			48,160
Diluted FFO per common share		$	1.59		$	1.10		$	0.96		$	0.39		$	0.20		$	0.39		$	0.33
Diluted FFO, excluding certain items, per common share		$	1.18		$	1.16		$	0.38		$	0.40		$	0.40		$	0.40		$	0.34
We provided rent abatements to tenants at the Eldridge Properties as a result of Hurricane Harvey through the second quarter of 2018. These rent abatements were offset by business interruption insurance proceeds, net of a deductible and estimated saved expenses as detailed below:
Rent abatements		$	(4,683	)	$	(1,921	)	$	—		$	(775	)	$	(3,908	)	$	(5,116	)	$	(1,921	)
Business interruption insurance proceeds, net		$	4,414		$	—		$	719		$	358		$	3,337		$	6,221		$	—

(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. We adopted new accounting guidance on January 1, 2018, that eliminates the requirement to separately measure and report hedge ineffectiveness expense (income).

(3) We had a non-recourse loan in default that subjected us to incur default interest at a rate that was 500 basis points higher than the stated interest rate. The ownership of this property was conveyed to the lender in August 2018.

For additional information regarding the non-GAAP measures, see pages 31-32.

Supplemental Operating and Financial Data 3Q’18 Page 6

Calculations of EBITDAre
(in thousands, except ratios)
		Three Months Ended
		30-Sep-18			30-Jun-18			31-Mar-18			31-Dec-17			30-Sep-17
Net income (loss)		$	22,567		$	(8,362	)	$	8,326		$	(9,884	)	$	(8,051	)
Adjustments:
	Interest expense:
	Interest expense - consolidated	6,782			8,011			7,705			7,534			7,516
	Interest expense - unconsolidated entities	—			—			360			338			335
	Interest rate hedge ineffectiveness expense (income) (1)	—			—			—			(262		)	8
	Amortization of deferred financing costs - consolidated	359			358			404			883			882
	Amortization of deferred financing costs - unconsolidated entities	—			—			32			32			36
	Total interest expense	7,141			8,369			8,501			8,525			8,777
	Tax provision - consolidated	228			214			195			171			202
	Tax provision - unconsolidated entities	—			—			14			1			—
	Depreciation and amortization - consolidated	24,834			27,134			24,616			23,788			23,785
	Depreciation and amortization - unconsolidated entities	—			—			391			391			289
	Asset impairment losses	3,418			—			—			5,250			—
	Loss (gain) on sale of real estate	—			90			(12,014		)	(384		)	—
	Loss (gain) on remeasurement of investment in unconsolidated entities	—			152			(11,242		)	—			—
EBITDAre		58,188			27,597			18,787			27,858			25,002
Adjustments:
	Loss on early extinguishment of debt	—			—			8,988			—			—
	Gain on troubled debt restructuring	(31,006		)	—			—			—			—
	Non-cash write-off (recoveries), net of tenant receivables	(56		)	237			—			19			(742		)
	Rent abatements (recoveries), net, due to Hurricane Harvey (2)	(719		)	417			409			(1,556		)	1,921
	Severance charges	—			108			19			—			—
Adjusted EBITDAre		26,407			28,359			28,203			26,321			26,181
Adjustments:
	EBITDAre from properties disposed before period end	(61		)	(4		)	(2,504		)	5			11
	Full quarter EBITDAre adjustment for acquired properties	—			—			1,223			—			—
Adjusted estimated full period EBITDAre from properties  owned at period end		$	26,346		$	28,355		$	26,922		$	26,326		$	26,192
Fixed charges
	Interest expense	$	7,141		$	8,369		$	8,501		$	8,525		$	8,777
	Interest rate hedge ineffectiveness (expense) income (1)	—			—			—			262			(8		)
	Default interest expense (3)	(388		)	(609		)	(602		)	(616		)	(616		)
	Capitalized interest incurred (4)	1,644			1,318			1,103			782			653
	Normalized interest expense	8,397			9,078			9,002			8,953			8,806
	Principal payments (excludes debt payoff)	239			378			384			355			349
Normalized fixed charges		$	8,636		$	9,456		$	9,386		$	9,308		$	9,155
Normalized interest coverage (5)		3.14			3.12			3.13			2.94			2.97
Normalized fixed charge coverage (5)		3.06			3.00			3.00			2.83			2.86

(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). We adopted new accounting guidance on January 1, 2018, that eliminates the requirement to separately measure and report hedge ineffectiveness expense (income).

(2) Reflects rent abatements, net of business interruption insurance recoveries and an insurance deductible, following Hurricane Harvey.

(3) We had a non-recourse loan in default that subjected us to incur default interest at a rate that was 500 basis points higher than the stated interest rate. The ownership of this property was conveyed to the lender in August 2018.

(4) Excludes capitalized interest funded from construction loans.

(5) Normalized interest coverage is equal to adjusted EBITDAre divided by normalized interest expense. Normalized fixed charge coverage is equal to adjusted EBITDAre divided by normalized fixed charges.

For additional information regarding the non-GAAP measures, see pages 31-32.

Supplemental Operating and Financial Data 3Q’18 Page 7

Unconsolidated Entities Financial Summary
at TIER REIT Ownership Share
As of and for the Quarter Ended September 30, 2018
(dollars in thousands)
	Third + Shoal
Ownership % during the period	47.50%
Ownership % at period end	47.50%
Balance Sheet Information
Real estate book value	$	53,683
Accumulated depreciation and amortization	(433		)
Real estate book value after depreciation and amortization	$	53,250
Cash and cash equivalents	$	550
Assets	$	56,846
Mortgage debt	$	26,137
Company’s equity interest in investment	$	25,919
Basis differences	6,193
Carrying value of the Company’s investment	$	32,112
________________________________
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.
Third + Shoal is a development property.

(Third + Shoal interior rendering)

Supplemental Operating and Financial Data 3Q’18 Page 8

Same Store Analysis
(in thousands, except property count and percentages)
	Three Months Ended											Nine Months Ended
Same Store NOI:	30-Sep-18			30-Sep-17			Favorable/ (Unfavorable)					30-Sep-18			30-Sep-17			Favorable/ (Unfavorable)
Same Store Revenue:
Rental revenue (1)	$	46,592		$	42,113		$	4,479				$	128,281		$	122,945		$	5,336
Less: Lease termination fees	(276		)	(177		)	(99		)			(986		)	(207		)	(779		)
	46,316			41,936			4,380			10.4	%	127,295			122,738			4,557			3.7	%
Same Store Expenses:
Property operating expenses (less tenant improvement demolition costs)	11,103			9,568			(1,535		)	(16.0	)%	31,320			29,046			(2,274		)	(7.8	)%
Real estate taxes	7,856			7,684			(172		)	(2.2	)%	21,680			21,697			17			0.1	%
Property management fees	25			25			—			—	%	76			66			(10		)	(15.2	)%
Property expenses	18,984			17,277			(1,707		)	(9.9	)%	53,076			50,809			(2,267		)	(4.5	)%
Same Store NOI - consolidated properties	27,332			24,659			2,673			10.8	%	74,219			71,929			2,290			3.2	%
Same Store NOI - unconsolidated properties (at ownership %)	1,272			728			544			74.7	%	—			—			—			—	%
Same Store NOI	$	28,604		$	25,387		$	3,217		12.7	%	$	74,219		$	71,929		$	2,290		3.2	%
Same Store Cash NOI:
Same Store NOI	$	27,332		$	24,659		$	2,673				$	74,219		$	71,929		$	2,290
Less:
Straight-line rent revenue adjustment	288			(2,085		)	2,373					222			(4,528		)	4,750
Above- and below-market rent amortization	(1,052		)	(1,156		)	104					(2,859		)	(2,922		)	63
Same Store Cash NOI - consolidated properties	26,568			21,418			5,150			24.0	%	71,582			64,479			7,103			11.0	%
Same Store Cash NOI - unconsolidated properties (at ownership %)	840			(283		)	1,123			(396.8	)%	—			—			—			—	%
Same Store Cash NOI	$	27,408		$	21,135		$	6,273		29.7	%	$	71,582		$	64,479		$	7,103		11.0	%
Same Store occupancy % at period end (% owned)	89.7		%	88.6		%						88.9		%	87.7		%
Same Store operating properties	16											14
Same Store rentable square feet (% owned)	5,911											5,446
Reconciliation of net income (loss) to Same Store NOI and Same Store Cash NOI:
Net income (loss)	$	22,567		$	(8,051	)						$	22,531		$	94,211
Adjustments:
Interest expense	7,141			8,406								23,619			25,421
Asset impairment losses	3,418			—								3,418			—
Tenant improvement demolition costs	36			127								170			242
General and administrative	5,128			5,157								16,008			16,490
Real estate depreciation and amortization	24,834			23,785								76,584			70,966
Interest and other income	(49		)	(170		)						(644		)	(1,271		)
Loss on early extinguishment of debt	—			—								8,988			545
Gain on troubled debt restructuring	(31,006		)	—								(31,006		)	—
Provision for income taxes	228			202								637			297
Equity in operations of investments	—			(67		)						(287		)	(6,367		)
Gain on sale of assets	—			—								(11,924		)	(92,012		)
Gain on remeasurement of investment in unconsolidated entities	—			—								(11,090		)	(14,168		)
Net operating income of non-same store properties	(4,689		)	(4,553		)						(21,799		)	(22,218		)
Lease termination fees	(276		)	(177		)						(986		)	(207		)
Same Store NOI of unconsolidated properties (at ownership %)	1,272			728								—			—
Same Store NOI	28,604			25,387								74,219			71,929
Straight-line rent revenue adjustment	288			(2,085		)						222			(4,528		)
Above- and below-market rent amortization	(1,052		)	(1,156		)						(2,859		)	(2,922		)
Cash NOI adjustments for unconsolidated properties (at ownership %)	(432		)	(1,011		)						—			—
Same Store Cash NOI	$	27,408		$	21,135							$	71,582		$	64,479
Our Domain 2 and Domain 7 properties (two properties in which we acquired full ownership in January 2017) are reflected above as consolidated and at 100% ownership in all periods presented. Our Domain 8 property is reflected as unconsolidated and at the prior year ownership percentage of 50% for the three-month comparison periods presented above. Domain 8 became operational in the third quarter of 2017 and we acquired full ownership on March 30, 2018. Legacy Union One was acquired in June 2017, and is included in the three-month comparison periods presented above. For additional information regarding the non-GAAP measures, see pages 30-31.
(1) We provided rent abatements to tenants at the Eldridge Properties as a result of Hurricane Harvey through the second quarter of 2018. These rent abatements were offset by business interruption insurance proceeds, net of a deductible and estimated saved expenses. See page 6 for details. The timing difference of rent abatements provided and business interruption insurance proceeds received for the Eldridge Properties was a significant driver to the increase in Same Store NOI and Same Store Cash NOI. Excluding the Eldridge Properties, Same Store NOI and Same Store Cash NOI increase over prior year same periods would be as follows:
Increase in Same Store NOI (excluding Eldridge Properties)										3.0	%										2.4	%
Increase in Same Store Cash NOI (excluding Eldridge Properties)										18.1	%										11.7	%

Supplemental Operating and Financial Data 3Q’18 Page 9

Schedule of Properties Owned
as of September 30, 2018
(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	91.4	%	$	23,100	$	40.81	$	41.83	$	45.76	9.3	%	11.8	%
Domain 2	Austin, TX	115	115	100.0	%	5,124		$	44.56	$	44.56	$	49.50	1.7	%	2.6	%
Domain 3	Austin, TX	179	179	100.0	%	6,180		$	34.53	$	37.21	$	43.65	2.7	%	3.1	%
Domain 4	Austin, TX	153	153	100.0	%	5,124		$	33.49	$	37.10	$	41.03	2.3	%	2.6	%
Domain 7	Austin, TX	222	222	100.0	%	10,092		$	45.46	$	45.46	$	49.28	3.3	%	5.1	%
Domain 8	Austin, TX	291	291	100.0	%	11,040		$	37.94	$	47.05	$	48.60	4.4	%	5.6	%
Domain Point (90%)	Austin, TX	240	216	90.5	%	6,714		$	34.34	$	34.34	$	43.60	3.3	%	3.4	%
Austin		1,819	1,795	95.9	%	67,374		$	39.14	$	41.61	$	46.06	27.1	%	34.3	%
5950 Sherry Lane	Dallas, TX	197	197	92.9	%	7,440		$	40.66	$	41.38	$	42.28	3.0	%	3.8	%
Burnett Plaza	Fort Worth, TX	1,025	1,025	85.3	%	20,832		$	23.84	$	24.25	$	25.00	15.5	%	10.6	%
Legacy Union One	Plano, TX	319	319	100.0	%	12,262		$	38.44	$	38.44	$	41.25	4.8	%	6.2	%
Dallas/Fort Worth		1,541	1,541	89.3	%	40,534		$	29.46	$	29.82	$	31.07	23.2	%	20.6	%
One BriarLake Plaza	Houston, TX	502	502	89.2	%	18,732		$	41.81	$	43.47	$	43.41	7.6	%	9.5	%
Two BriarLake Plaza	Houston, TX	333	333	85.6	%	9,732		$	34.15	$	42.40	$	42.86	5.0	%	5.0	%
One & Two Eldridge Place	Houston, TX	519	519	70.7	%	12,012		$	32.73	$	33.42	$	35.20	7.8	%	6.1	%
Three Eldridge Place	Houston, TX	305	305	71.1	%	9,372		$	43.19	$	43.74	$	38.05	4.6	%	4.8	%
Houston		1,659	1,659	79.4	%	49,848		$	37.85	$	40.48	$	40.12	25.0	%	25.4	%
Bank of America Plaza	Charlotte, NC	891	891	96.0	%	22,824		$	26.69	$	26.96	$	32.50	13.4	%	11.6	%
Charlotte		891	891	96.0	%	22,824		$	26.69	$	26.96	$	32.50	13.4	%	11.6	%
Plaza at MetroCenter (1)	Nashville, TN	361	361	92.0	%	6,168		$	18.58	$	18.83	$	20.00	5.5	%	3.1	%
Nashville		361	361	92.0	%	6,168		$	18.58	$	18.83	$	20.00	5.5	%	3.1	%
Woodcrest (2)	Cherry Hill, NJ	386	386	97.2	%	9,816		$	26.18	$	26.18	$	20.74	5.8	%	5.0	%
Other		386	386	97.2	%	9,816		$	26.18	$	26.18	$	20.74	5.8	%	5.0	%
Total operating office properties		6,657	6,633	90.1	%	$	196,564	$	32.89	$	34.32	$	36.32	100.0	%	100.0	%
Development Properties				Leased %
Domain 11	Austin, TX	324	324	98.0	%
Domain 12	Austin, TX	320	320	100.0	%
Third + Shoal (47.5%)	Austin, TX	345	164	99.7	%
(1) This property is classified as held for sale as of September 30, 2018.
(2) Includes two properties.
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’18 Page 10

Portfolio Analysis
For the Three Months Ended and
as of September 30, 2018
	Number of Properties	Number of Buildings	Net Rentable Area (000’s)	Commenced % SF Leased		% of NRA		NOI ($000’s)  (1)			% of NOI
Market
Austin	7	11	1,795	95.9	%	27.1	%	$	11,489		35.7	%
Dallas/Fort Worth	3	3	1,541	89.3	%	23.2	%	6,450			20.0	%
Houston	4	5	1,659	79.4	%	25.0	%	7,487			23.3	%
Charlotte	1	1	891	96.0	%	13.4	%	4,805			14.9	%
Nashville	1	2	361	92.0	%	5.5	%	937			2.9	%
Other	2	2	386	97.2	%	5.8	%	1,030			3.2	%
Total	18	24	6,633	90.1	%	100.0	%	32,198			100.0	%
Reconciliation to NOI (Consolidated):
Plus NOI from noncontrolling interest								126
Plus NOI from disposed properties								(63		)
NOI (Consolidated)								$	32,261
Notes:
Analysis relates to operating properties owned at the end of the most recent period only.
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 approximately $0.7 million of business interruption insurance proceeds received in the third quarter of 2018 related to rent abatements provided to tenants at the Eldridge Properties in previous periods as a result of Hurricane Harvey. We anticipate we will receive additional business interruption insurance proceeds in subsequent quarters.

Supplemental Operating and Financial Data 3Q’18 Page 11

Components of Net Asset Value
(in thousands, except percentages)
		Annualized Three Months Ended
		30-Sep-18
Consolidated total revenue		$	219,328
	Less:
	GAAP rent adjustments	(7,944		)
	Lease termination fees	(1,104		)
		210,280
Consolidated total property operating expenses		(90,284		)
Adjusted cash NOI		119,996
	Adjustments:
	Adjusted cash NOI from sold properties, at ownership share	20
	Adjusted cash NOI from noncontrolling interest in consolidated assets	(375		)
	Adjusted cash NOI attributed to business interruption insurance proceeds in excess of abatements during the period at the Eldridge Properties (2)	(2,585		)
	Incremental pro forma stabilized adjusted cash NOI from executed leases at Domain 8, Domain 11, Domain 12, and Third + Shoal at ownership share	31,343
Total adjusted cash NOI at ownership share (3)		$	148,399
		30-Sep-18
Cost basis of land and development properties, at ownership share (4)		$	36,426
Other tangible assets
	Cash and cash equivalents	$	5,192
	Restricted cash	10,232
	Accounts receivable, net (excluding $50,878 of straight-line rent receivable and $12,132 of insurance receivable) (5)	6,582
	Prepaid expenses and other assets	19,357
Total other tangible assets		$	41,363
Liabilities
	Mortgage debt	$	142,162
	Unsecured term loans and revolving credit facility	591,000
	Accrued and other liabilities	81,031
	Ownership share of unconsolidated mortgage debt	26,137
	Remaining estimated cost to complete Domain 11, Domain 12, and Third + Shoal, at ownership share	142,370
Total liabilities		$	982,700
Total common shares, restricted stock, and restricted stock units outstanding		54,102
(1)	Includes Domain 9, Domain 10, Domain 11, Legacy Union Two, Legacy Union Three, and Domain Blocks D & G at ownership share.
(2)	We received approximately $0.7 million of business interruption insurance proceeds during the quarter.
(3)	Comprised of adjusted cash NOI as detailed in the table below.

Market	Adjusted Cash NOI		%
Austin	$	69,768	47	%
Dallas	24,356		17	%
Houston	28,447		19	%
Charlotte	17,240		12	%
Nashville	3,396		2	%
Other	5,192		3	%
Total	$	148,399	100	%

(4)	Includes Domain 9, Domain 10, Legacy Union Two, Legacy Union Three, and Domain Blocks D & G at ownership share.
(5)	Excludes insurance receivable expected to be recovered for the write-off of net book value of hurricane-damaged assets.

Supplemental Operating and Financial Data 3Q’18 Page 12

Significant Tenants
September 30, 2018
(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.	$	12,265	6	%	319	5	%	8.8	Ba1 / BBB-
Amazon	11,297		6	%	246	4	%	7.2	Baa1 / AA-
Amoco	9,498		5	%	217	4	%	0.5	A1 / A-
Bank of America	8,931		4	%	388	6	%	1.9	A3 / A-
Apache Corporation	8,671		4	%	210	4	%	6.1	Baa3 / BBB
GM Financial	8,306		4	%	326	5	%	7.4	Baa3 / BBB
Samsung Engineering America Inc.	7,206		4	%	161	3	%	6.8	NR
McDermott, Inc.	5,504		3	%	169	3	%	1.8	NR / B+
GSA	5,284		3	%	226	4	%	5.1	U.S. Government
HomeAway	5,128		3	%	115	2	%	7.4	Ba1 / BBB
Facebook, Inc.	4,847		2	%	102	2	%	7.1	NR
Blackbaud, Inc.	4,753		2	%	133	2	%	5.0	NR
Time Warner Cable Inc.	4,072		2	%	112	2	%	2.3	NR
Conduent Incorporated	4,020		2	%	151	3	%	1.9	Ba3 / BB
SCOR Global Life	3,696		2	%	140	2	%	9.8	NR / AA-
Total of largest 15 tenants	$	103,478	50	%	3,015	50	%	5.2
Total all tenants	$	205,095			5,977			5.3

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’18 Page 13

Industry Diversification (by square feet)

As of September 30, 2018

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 12 industry classifications.

Supplemental Operating and Financial Data 3Q’18 Page 14

Leasing Activity Summary
For the Three Months Ended
September 30, 2018
		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-18		30-Jun-18	Expiring		Renewals	Expansions	New	30-Sep-18	30-Sep-18		Expiring		Activity		% Increase		Expiring		Activity		% Increase
Austin	1,795	95.8	%	1,720	(25	)	5	14	8	1,722	95.9	%	$	25.14	$	29.05	16	%	$	24.28	$	30.30	25	%
Dallas/Fort Worth	1,541	90.5	%	1,395	(29	)	1	5	4	1,376	89.3	%	$	20.06	$	24.54	22	%	$	19.76	$	25.18	27	%
Houston	1,659	75.8	%	1,258	(17	)	17	—	59	1,317	79.4	%	$	25.57	$	23.73	(7	)%	$	23.24	$	22.18	(5	)%
Charlotte	891	96.0	%	855	(3	)	3	—	—	855	96.0	%	$	30.56	$	32.00	5	%	$	24.43	$	33.62	38	%
Nashville	361	90.9	%	328	—		—	—	4	332	92.0	%	$	8.19	$	12.19	49	%	$	8.19	$	12.19	49	%
Other	386	97.2	%	375	—		—	—	—	375	97.2	%	$	—	$	—	—	%	$	—	$	—	—	%
Total	6,633	89.4	%	5,931	(74	)	26	19	75	5,977	90.1	%	$	24.56	$	24.82	1	%	$	22.71	$	24.21	7	%
Year-To-Date Summary	Beginning of Period								End of Period
Q1 Activity	6,633	89.8	%	5,954	(89	)	56	1	11	5,933	89.4	%	$	21.50	$	22.78	6	%	$	20.24	$	25.61	27	%
Q2 Activity	6,633	89.4	%	5,933	(96	)	48	23	23	5,931	89.4	%	$	20.36	$	22.48	10	%	$	20.03	$	23.22	16	%
Q3 Activity	6,633	89.4	%	5,931	(74	)	26	19	75	5,977	90.1	%	$	24.56	$	24.82	1	%	$	22.71	$	24.21	7	%
					(259	)	130	43	109				$	22.42	$	23.55	5	%	$	21.22	$	24.22	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 Straight-lined Net Rent.

Supplemental Operating and Financial Data 3Q’18 Page 15

Leasing Rate Activity Summary
For the Three Months Ended
September 30, 2018
	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	5	$	23.07	$	29.00		$	20.74	$	30.79		14	$	27.18	$	28.82		$	27.18	$	30.24		8	$	22.81	$	29.44		$	21.26	$	30.01
Dallas/Fort Worth	1	$	15.72	$	14.95		$	13.22	$	14.95		5	$	18.46	$	25.00		$	18.46	$	26.00		4	$	23.42	$	26.45		$	23.29	$	26.71
Houston	17	$	34.20	$	26.00		$	30.44	$	25.69		—	$	—	$	—		$	—	$	—		59	$	23.08	$	23.08		$	21.17	$	21.17
Charlotte	3	$	30.56	$	32.00		$	24.43	$	33.62		—	$	—	$	—		$	—	$	—		—	$	—	$	—		$	—	$	—
Nashville	—	$	—	$	—		$	—	$	—		—	$	—	$	—		$	—	$	—		4	$	8.19	$	12.19		$	8.19	$	12.19
Other	—	$	—	$	—		$	—	$	—		—	$	—	$	—		$	—	$	—		—	$	—	$	—		$	—	$	—
Total	26	$	30.93	$	26.84		$	27.22	$	27.17		19	$	24.88	$	27.82		$	24.88	$	29.12		75	$	22.28	$	23.36		$	20.60	$	21.93
Percentage increase (decrease)				(13		)%			—		%				12		%			17		%				5		%			6		%
Year-To-Date Summary:
Q1 Activity	56	$	22.63	$	23.39		$	21.46	$	26.41		1	$	27.50	$	26.00		$	27.40	$	26.50		11	$	15.12	$	19.00		$	13.34	$	21.07
Q2 Activity	48	$	19.35	$	19.80		$	18.57	$	20.96		23	$	20.66	$	25.22		$	20.61	$	26.10		23	$	22.36	$	25.20		$	22.63	$	25.04
Q3 Activity	26	$	30.93	$	26.84		$	27.22	$	27.17		19	$	24.88	$	27.82		$	24.88	$	29.12		75	$	22.28	$	23.36		$	20.60	$	21.93
	130	$	23.08	$	22.76		$	21.54	$	24.55		43	$	22.69	$	26.39		$	22.66	$	27.45		109	$	21.57	$	23.31		$	20.30	$	22.50
Percentage increase (decrease)				(1		)%			14		%				16		%			21		%				8		%			11		%
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 Straight-lined Net Rent.

Supplemental Operating and Financial Data 3Q’18 Page 16

Lease Expirations
For Four Quarters From October 1, 2018
(in thousands, except per SF data)
	Market	Month to Month		4Q'18		1Q'19		2Q'19		3Q'19		Grand Total
	By Square Foot
	Austin	15		4		8		54		5		86
	Dallas/Fort Worth	12		4		12		1		—		29
	Houston	—		30		21		223		30		304
	Charlotte	—		3		42		1		43		89
	Nashville	1		2		—		—		—		3
	Other	—		—		—		—		—		—
	Total	28		43		83		279		78		511
	By Annualized Expiring Rentals
	Austin	$	559	$	146	$	336	$	2,146	$	174	$	3,361
	Dallas/Fort Worth	264		58		393		53		—		768
	Houston	—		1,342		690		9,706		1,199		12,937
	Charlotte	—		135		963		60		986		2,144
	Nashville	10		40		—		—		—		50
	Other	—		—		—		—		—		—
	Total	$	833	$	1,721	$	2,382	$	11,965	$	2,359	$	19,260
	By Expiring Rent Per SF
	Austin	$	37.52	$	38.42	$	40.00	$	39.81	$	36.25	$	39.17
	Dallas/Fort Worth	$	22.56	$	14.50	$	32.21	$	40.77	$	—	$	26.30
	Houston	$	—	$	45.80	$	33.01	$	43.56	$	39.83	$	42.68
	Charlotte	$	—	$	46.55	$	22.77	$	42.86	$	22.77	$	23.85
	Nashville	$	16.67	$	19.05	$	—	$	—	$	—	$	18.52
	Other	$	—	$	—	$	—	$	—	$	—	$	—
	Total	$	29.75	$	40.02	$	28.70	$	42.89	$	30.24	$	37.69
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.
Annualized expiring rentals may include rent related to parking management agreements where square footage is zero.

Supplemental Operating and Financial Data 3Q’18 Page 17

Lease Expirations
Annually From October 1, 2018
(in thousands, except percentage and per SF data)
	Market	2018			2019			2020			2021			2022			2023			2024			2025			2026			2027			2028+			Grand Total
	By Square Foot
	Austin	19			146			216			82			250			275			141			165			207			180			44			1,722
	Dallas/Fort Worth	16			31			169			72			44			164			30			27			390			319			114			1,376
	Houston	30			274			247			90			45			63			277			20			176			—			97			1,317
	Charlotte	3			87			29			333			17			86			37			5			25			3			231			855
	Nashville	3			3			2			60			20			17			4			22			—			—			200			332
	Other	—			39			244			93			—			—			—			—			—			—			—			375
	Total	71			580			907			730			376			605			489			239			798			502			686			5,977
	As a % of Occupied SF	1		%	10		%	15		%	12		%	6		%	10		%	8		%	4		%	14		%	9		%	11		%	100		%
	As a % of Total NRA	1		%	9		%	14		%	11		%	6		%	9		%	7		%	4		%	12		%	7		%	10		%	90		%
	By Annualized Expiring Rentals
	Austin	$	705		$	5,552		$	8,954		$	3,823		$	11,423		$	12,004		$	6,053		$	8,472		$	9,916		$	9,634		$	1,809		$	78,345
	Dallas/Fort Worth	322			918			5,102			2,684			1,238			4,957			1,023			821			11,281			13,242			3,045			44,633
	Houston	1,342			11,595			9,532			3,777			2,096			2,756			12,295			791			8,230			—			3,781			56,195
	Charlotte	135			2,009			997			8,981			635			3,222			535			295			1,058			147			8,383			26,397
	Nashville	50			68			45			1,201			438			398			88			544			—			—			4,532			7,364
	Other	—			938			6,634			2,510			—			—			—			—			—			—			4			10,086
	Total	$	2,554		$	21,080		$	31,264		$	22,976		$	15,830		$	23,337		$	19,994		$	10,923		$	30,485		$	23,023		$	21,554		$	223,020
	As a % of Total Annualized Expiring Rentals	1		%	9		%	14		%	10		%	7		%	11		%	9		%	5		%	14		%	10		%	10		%	100		%
	By Expiring Rent Per SF
	Austin	$	37.70		$	38.16		$	41.40		$	46.45		$	45.89		$	43.65		$	42.93		$	51.63		$	47.97		$	53.52		$	41.59		$	45.50
	Dallas/Fort Worth	$	20.51		$	29.61		$	30.05		$	37.49		$	27.82		$	30.15		$	34.10		$	30.52		$	28.93		$	41.59		$	26.64		$	32.42
	Houston	$	45.80		$	42.35		$	38.42		$	41.83		$	45.76		$	44.03		$	44.43		$	40.15		$	46.76		$	—		$	39.47		$	42.63
	Charlotte	$	46.55		$	23.09		$	34.38		$	26.97		$	38.25		$	37.29		$	14.62		$	54.63		$	42.15		$	47.42		$	36.32		$	30.84
	Nashville	$	18.52		$	20.61		$	21.43		$	20.22		$	21.79		$	23.01		$	21.46		$	23.86		$	—		$	—		$	22.64		$	22.18
	Other	$	—		$	24.30		$	27.24		$	26.99		$	—		$	—		$	—		$	—		$	—		$	—		$	20.00		$	26.87
	Total	$	35.97		$	36.34		$	34.47		$	31.47		$	42.10		$	38.57		$	40.89		$	45.70		$	38.20		$	45.86		$	31.42		$	37.31
	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.
	Annualized expiring rentals may include rent related to parking management agreements where square footage is zero.

Supplemental Operating and Financial Data 3Q’18 Page 18

Occupancy Trends
	Rentable SF (000’s)	Occupancy %
Market	30-Sep-18	30-Sep-18		30-Jun-18		31-Mar-18		31-Dec-17		30-Sep-17
Austin	1,795	95.9	%	95.8	%	95.4	%	95.8	%	95.0	%
Dallas/Fort Worth	1,541	89.3	%	90.5	%	91.0	%	92.1	%	90.3	%
Houston	1,659	79.4	%	75.8	%	76.3	%	76.4	%	75.8	%
Charlotte	891	96.0	%	96.0	%	95.6	%	95.8	%	95.8	%
Nashville	361	92.0	%	90.9	%	90.3	%	90.3	%	87.5	%
Other	386	97.2	%	97.2	%	97.2	%	97.2	%	97.2	%
Total	6,633	90.1	%	89.4	%	89.4	%	89.5	%	88.6	%
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.

Supplemental Operating and Financial Data 3Q’18 Page 19

Leasing Cost Summary
For the Three Months Ended
September 30, 2018
			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	5	5.0	$	9.36	$	4.48	$	13.84	$	1.87	$	0.90	$	2.77
Dallas/Fort Worth	1	1.3	$	1.41	$	—	$	1.41	$	1.08	$	—	$	1.08
Houston	17	8.8	$	5.07	$	21.44	$	26.51	$	0.58	$	2.44	$	3.01
Charlotte	3	5.0	$	3.36	$	3.98	$	7.34	$	0.67	$	0.80	$	1.47
Nashville	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Other	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Total Current Quarter	26	7.3	$	5.56	$	15.34	$	20.90	$	0.76	$	2.09	$	2.85
Q2 2018	48	6.7	$	6.73	$	2.02	$	8.75	$	1.01	$	0.30	$	1.31
Q1 2018	56	6.1	$	13.02	$	11.20	$	24.22	$	2.13	$	1.84	$	3.97
Year to Date 2018	130	6.6	$	9.2	$	8.64	$	17.84	$	1.44	$	1.32	$	2.76
Year Ended 2017	918	5.5	$	6.18	$	11.53	$	17.71	$	1.07	$	1.83	$	2.90
Expansion
Market
Austin	14	6.7	$	18.07	$	37.36	$	55.43	$	2.70	$	5.54	$	8.24
Dallas/Fort Worth	5	3.1	$	8.58	$	25.83	$	34.41	$	2.77	$	8.33	$	11.10
Houston	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Charlotte	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Nashville	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Other	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Total Current Quarter	19	5.7	$	15.57	$	34.33	$	49.90	$	2.71	$	5.98	$	8.69
Q2 2018	23	5.5	$	3.13	$	5.08	$	8.21	$	0.57	$	0.93	$	1.50
Q1 2018	1	2.9	$	8.22	$	7.32	$	15.54	$	2.84	$	2.52	$	5.36
Year to Date 2018	43	5.5	$	8.75	$	18.05	$	26.8	$	1.57	$	3.2	$	4.77
Year Ended 2017	62	5.8	$	13.24	$	21.35	$	34.59	$	2.33	$	3.69	$	6.02
New
Market
Austin	8	5.2	$	14.65	$	20.56	$	35.21	$	2.82	$	3.95	$	6.77
Dallas/Fort Worth	4	7.3	$	20.56	$	13.22	$	33.78	$	2.82	$	1.81	$	4.63
Houston	59	11.1	$	23.90	$	116.13	$	140.03	$	2.15	$	10.46	$	12.62
Charlotte	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Nashville	4	5.1	$	6.95	$	12.16	$	19.11	$	1.36	$	2.38	$	3.75
Other	—	—	$	—	$	—	$	—	$	—	$	—	$	—
Total Current Quarter	75	9.9	$	21.83	$	94.90	$	116.73	$	2.19	$	9.54	$	11.73
Q2 2018	23	8.1	$	9.89	$	24.04	$	33.93	$	1.22	$	2.98	$	4.20
Q1 2018	11	6.4	$	12.55	$	34.36	$	46.91	$	1.96	$	5.38	$	7.34
Year to Date 2018	109	9.2	$	18.37	$	73.84	$	92.21	$	1.96	$	7.74	$	9.70
Year Ended 2017	312	7.6	$	15.55	$	43.29	$	58.84	$	2.05	$	5.73	$	7.78
Total
Current Quarter	120	8.7	$	17.32	$	68.07	$	85.39	$	1.98	$	7.81	$	9.79
Q2 2018	94	6.7	$	6.62	$	8.16	$	14.78	$	0.99	$	1.21	$	2.20
Q1 2018	68	6.1	$	12.87	$	14.90	$	27.77	$	2.11	$	2.44	$	4.55
Year to Date 2018	282	7.4	$	12.68	$	35.28	$	47.96	$	1.70	$	4.75	$	6.45
Year Ended 2017	1,292	6.0	$	8.78	$	19.67	$	28.45	$	1.45	$	3.26	$	4.71
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’18 Page 20

	Development, Leasing, and
	Capital Expenditures Summary
	(in thousands)
		For the Three Months Ended
		30-Sep-18		30-Jun-18		31-Mar-18		31-Dec-17		30-Sep-17
	Recurring capital expenditures
	Leasing costs	$	2,011	$	1,905	$	5,345	$	5,199	$	9,065
	Building improvements	1,241		432		847		910		1,206
	Subtotal recurring capital expenditures	3,252		2,337		6,192		6,109		10,271
	Non-recurring capital expenditures
	Building improvements (1)	2,591		772		4,461		2,751		150
	Leasing costs (2)	4,025		1,295		1,351		1,039		3,218
	Development (3)	30,518		26,826		29,512		24,361		18,389
	Redevelopment (4)	187		906		967		1,444		603
	Subtotal non-recurring capital expenditures	37,321		29,799		36,291		29,595		22,360
	Total capital expenditures	$	40,573	$	32,136	$	42,483	$	35,704	$	32,631
(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 Hurricane Harvey, which has been identified as an unusual event. Costs incurred to improve the Eldridge Properties for such damages should be recoverable under our insurance policies and were as follows:
		$	2,034	$	417	$	4,461	$	2,751	$	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:
		$	371	$	—	$	—	$	—	$	—
(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’18 Page 21

Potential Future Development and Redevelopment Sites
September 30, 2018
		Approximate Rentable Square Feet	Month of Acquisition	Cost Basis (in millions)
Project	Acres					Comments
Development
Austin
Domain 9 and Domain 10	6.2	630,000	Jul-15	$	17.0	Office building (Domain 10 commenced development in October 2018)
Domain D & G	5.6	600,000	Jul-15	$	9.9	Office building(s)
Dallas/Fort Worth
Legacy Union Two and Legacy Union Three (95%) (1)	4.0	600,000	Jun-15	$	10.0	Office building(s)
Burnett Plaza	1.4	N/A	Jan-07	$	3.4	Planned mixed-use development and parking garage for use at Burnett Plaza
Redevelopment (2)
Austin
Domain 3 and Domain 4	8.8	2,000,000	Jul-15	N/A		Potential mixed-use redevelopment opportunity
Domain Point (90%)	9.5	1,000,000	Jan-18	N/A		Potential mixed-use redevelopment opportunity
(1) The cost basis for this less than wholly-owned project represents 100%.
(2) Excludes 0.6 million of existing rentable square feet.

Supplemental Operating and Financial Data 3Q’18 Page 22

Summary Development Activity
September 30, 2018
					Estimated Shell Delivery Date		Estimated Total Cost (in millions) (1)	Cost to Date (in millions) (1)	Estimated Stabilized NOI  (in millions)	Estimated Stabilized Cash NOI (in millions)
Project	Market	Square feet (in thousands)	% Leased	Start Date		Estimated Cost per SF
In Process:
Domain 12	Austin	320	100%	2Q’18	4Q’19	$379	$121.4	$29.2	$11.4	$11.4
Domain 11	Austin	324	98%	2Q’17	4Q’18	$352	$114.2	$81.7	$10.7	$10.9
Third + Shoal	Austin	345	100%	1Q’17	3Q’18	$451	$155.7	$118.5	$14.6	$14.4
Completed in the Past 18 Months:
Domain 8 (2)	Austin	291	100%	3Q’15	2Q’17	$290	$84.4	$84.4	$11.0	$9.5
(1) Reflects development cost at the asset level. Excludes basis adjustment of $6.2 million to date and $6.3 million estimated in total for Third + Shoal. Excludes basis adjustment of $4.3 million in total for Domain 8. On March 30, 2018, we acquired the remaining 50% interest in Domain 8, increasing our ownership interest in the property to 100%.
(2) Estimated stabilized NOI for Domain 8 includes amortization income/(expense) as a result of stepping up our basis to fair value related to our acquisition of the remaining interest.
All amounts above are reflected at 100%.

Percent of Expected Stabilized NOI by quarter
Project	4Q'18	1Q'19	2Q'19	3Q’19	4Q’19	2020	2021	2022
Domain 12	—	—	—	—	46%	73%	93%	100%
Domain 11	23%	60%	59%	79%	79%	86%	95%	100%
Third + Shoal	48%	61%	66%	86%	93%	100%	100%	100%
Domain 8	95%	100%	100%	100%	100%	100%	100%	100%

Represents expected NOI as a percentage of estimated stabilized NOI based on current executed leases and other forecasted leasing.

Percent of Expected Stabilized Cash NOI by quarter
Project	4Q'18	1Q'19	2Q'19	3Q’19	4Q’19	2020	2021	2022
Domain 12	—	—	—	—	(21)%	(3)%	74%	100%
Domain 11	(9)%	(37)%	(40)%	33%	32%	53%	84%	100%
Third + Shoal	(16)%	(32)%	(27)%	58%	79%	96%	100%	100%
Domain 8	84%	98%	98%	100%	100%	100%	100%	100%

Represents expected adjusted cash NOI as a percentage of estimated stabilized NOI based on current executed leases and other forecasted leasing. Adjusted cash NOI excludes non-cash revenue items including straight-line rent adjustments and the amortization of above- and below-market rent.

Negative percentages occur when expenses are incurred for tenants during a free rent period.

Supplemental Operating and Financial Data 3Q’18 Page 23

Property Under Development

Third + Shoal

Austin, Texas

Property Description

Third + Shoal is a 29-story, Class A office building in the center of Austin’s “New Downtown” district. The building is constructed of poured in place concrete along with a glass curtain wall system. The building is 100% leased in total with 74% 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 features 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.

Property Facts

Submarket	Austin CBD
Floors	17 Floors Rentable Space/12 Floors Parking
Approximate Rentable SF	345,000
Estimated Operating Expenses per SF	$22.13
Shell Delivery Date to Tenants	3Q’18
Estimated Project Cost at Completion (1)	$155,700,000
Percentage Owned	47.5	%
Percentage Leased	99.7	%
(1) Excludes $6.3 million basis adjustment.

Supplemental Operating and Financial Data 3Q’18 Page 24

Property Under Development

Domain 10

Austin, Texas

(rendering)

Property Description

Domain 10 is a 15-story, Class A office building currently under development located within The Domain in Austin, Texas.  It offers 300,000 square feet of office space, along with dramatic views of the surrounding Domain community and Texas Hill Country.  Domain 10 was designed to achieve a minimum LEED Silver and Energy Star designations. Development on Domain 10 commenced in October 2018.

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	8 Floors Rentable Space/7 Floors Parking
Approximate Rentable SF	300,000
Estimated Operating Expenses per SF	$16.58
Estimated Shell Delivery Date to Tenants	2Q’20
Estimated Project Cost at Completion	$116,200,000
Percentage Owned	100	%
Percentage Leased	—	%

Supplemental Operating and Financial Data 3Q’18 Page 25

Property Under Development

Domain 11

Austin, Texas

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 Group, 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 to Tenants	4Q’18
Estimated Project Cost at Completion	$114,200,000
Percentage Owned	100	%
Percentage Leased	98.0	%

Supplemental Operating and Financial Data 3Q’18 Page 26

Property Under Development

Domain 12

Austin, Texas

(rendering)

Property Description

Domain 12 is a 17-story, Class A office building currently under development located within The Domain in Austin, Texas.  It will offer 320,000 square feet of office space, along with dramatic views of the surrounding Domain community and Texas Hill Country.  Domain 12 was designed to achieve a minimum LEED Silver and Energy Star designations. The building is 100% pre-leased.

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/8 Floors Parking
Approximate Rentable SF	320,000
Estimated Operating Expenses per SF	$16.20
Estimated Shell Delivery Date to Tenants	4Q’19
Estimated Project Cost at Completion	$121,400,000
Percentage Owned	100	%
Percentage Leased	100	%

Supplemental Operating and Financial Data 3Q’18 Page 27

Acquisition and Disposition Activities
For the Twelve Months Ended September 30, 2018
		Number of Properties	Square Feet (in thousands) (at 100%)	Transaction Date	Price (in thousands)
	Location
Acquisitions
Domain Point (1)	Austin, TX	1	240	1/4/2018	$	73,800
Domain 8 (2)	Austin, TX	1	291	3/30/2018	$	92,787
		2	531
Dispositions
500 East Pratt	Baltimore, MD	1	280	2/13/2018	$	60,000
Centreport Office Center	Fort Worth, TX	1	133	2/22/2018	$	12,696
Loop Central	Houston, TX	1	575	3/27/2018	$	72,982
Fifth Third Center (3)	Columbus, OH	1	331	8/27/2018	N/A
		4	1,319
(1) We acquired a 96.5% initial economic interest in Domain Point. We own a 90% interest in the joint venture entity that owns Domain Point.
(2) We acquired the remaining 50% interest in Domain 8, increasing our ownership interest to 100%.
(3) Ownership of Fifth Third Center was conveyed to the associated lender pursuant to a foreclosure and was accounted for as a full settlement of the outstanding $48.2 million loan and related interest.

Supplemental Operating and Financial Data 3Q’18 Page 28

Summary of Financing
September 30, 2018
(in thousands, except percentages and number of years)
					Principal			Weighted Average Effective Interest Rate	% of Total
Fixed Rate Debt
Secured mortgage debt					$	142,162		5.06%	19%
Unsecured term loans (1)					525,000			3.41%	72%
Total fixed rate debt					667,162			3.76%	91%
Variable Rate Debt
Unsecured term loan (1)					50,000			4.20%	7%
Unsecured revolving credit facility (2)					16,000			3.50%	2%
Total variable rate debt					66,000			4.03%	9%
Total debt (3)					733,162			3.79%	100%
Unamortized debt issuance costs (3)					(2,029		)
Total notes payable, net					$	731,133
(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 $304.6 million were available under the credit facility.
(3) Excludes $3.0 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)
2018	$	—		—	$	—		—	$	—		—	—
2019	—			—	—			—	—			—	—
2020	—			—	—			—	—			—	—
2021	76,162			5.72%	—			—	76,162			5.72%	10%
2022	—			—	291,000			3.23%	291,000			3.23%	40%
Thereafter	66,000			4.30%	300,000			3.73%	366,000			3.83%	50%
Total debt	$	142,162			$	591,000			733,162			3.79%	100%
Unamortized debt issuance costs									(2,029		)
Total notes payable, net									$	731,133
Weighted average maturity in years	3.5				5.0				4.7
(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)
2018	$	—		—	$	—		—	$	—		—	—
2019	—			—	—			—	—			—	—
2020	—			—	—			—	—			—	—
2021	76,162			5.72%	26,137			5.33%	102,299			5.62%	13%
2022	291,000			3.23%	—			—	291,000			3.23%	38%
Thereafter	366,000			3.83%	—			—	366,000			3.83%	49%
Total debt	733,162				26,137				759,299			3.84%	100%
Unamortized debt issuance costs	(2,029		)		(590		)		(2,619		)
Total notes payable, net	$	731,133			$	25,547			$	756,680
Weighted average maturity in years	4.7				3.1				4.7
(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
Interest rate swap - cash flow hedge	$	62,500		one-month LIBOR	2.8220%			31-Oct-19	31-Dec-24			Credit Facility
Interest rate swap - cash flow hedge	$	62,500		one-month LIBOR	2.8230%			31-Oct-19	31-Dec-24			Credit Facility
Interest rate swap - cash flow hedge	$	125,000		one-month LIBOR	2.8220%			31-Oct-19	31-Dec-24			Credit Facility

Supplemental Operating and Financial Data 3Q’18 Page 29

	Principal Payments by Year
	as of September 30, 2018
	(in thousands, except percentages)
			Stated Interest Rate		Effective Interest Rate
		Maturity					Total			2018			2019			2020			2021			2022			Thereafter
One BriarLake Plaza		01-Aug-21	5.65	%	5.72	%	$	76,162		$	501		$	1,589		$	1,670		$	72,402		$	—		$	—
Credit Facility - Revolving Line		18-Jan-22	3.45	%	3.50	%	16,000			—			—			—			—			16,000			—
Credit Facility - Term Loan		30-Jun-22	3.17	%	3.21	%	275,000			—			—			—			—			275,000			—
Legacy Union One		01-Jan-23	4.24	%	4.30	%	66,000			—			—			—			—			—			66,000
Credit Facility - Term Loan		17-Jan-25	3.68	%	3.73	%	300,000			—			—			—			—			—			300,000
Total			3.74	%	3.79	%	733,162			501			1,589			1,670			72,402			291,000			366,000
Unamortized debt issuance costs (1)							(2,029		)
Consolidated notes payable, net							731,133
Notes associated with investments in unconsolidated entities and excluded from the consolidated balance above (at ownership share):
Third + Shoal (47.5%)		27-Oct-21	5.26	%	5.33	%	26,137			—			—			—			26,137			—			—
Unamortized debt issuance costs							(590		)
Total unconsolidated notes payable, net							$	25,547
Total notes payable			3.79	%	3.84	%	759,299			$	501		$	1,589		$	1,670		$	98,539		$	291,000		$	366,000
Unamortized debt issuance costs							(2,619		)
Total notes payable, net							$	756,680
% of principal payments due by year							100		%	—		%	—		%	—		%	13		%	38		%	49		%
(1)	Excludes $3.0 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’18 Page 30

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”), which is net income (loss), computed in accordance with GAAP, excluding gains (or losses) from sales of property and impairments of depreciable real estate (including impairments of investments in unconsolidated entities that 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, and impairments of depreciable real estate assets, 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’18 Page 31

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 for Real Estate (EBITDAre)

EBITDAre is a non-GAAP financial measure. We use EBITDAre as defined by Nareit which is net income (loss), computed in accordance with GAAP, plus interest expense, plus income tax expense, plus depreciation and amortization expense, plus (minus) losses and gains on the disposition of depreciated property, including losses and gains on change of control, plus impairment write-downs of depreciated property, and after related adjustments for unconsolidated entities. Our EBITDAre as presented may not be comparable to amounts calculated by other REITs that do not define EBITDAre in accordance with the current Nareit definition, or interpret it differently than we do.

EBITDAre 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. EBITDAre 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 Adjusted EBITDAre, which is EBITDAre excluding certain revenues and operating expenses. The items excluded relate to certain non-operating activities or certain non-recurring activities that create significant EBITDAre volatility. Further, we evaluate Adjusted Estimated Full Period EBITDAre, which is EBITDAre 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 EBITDAre 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’18 Page 32