Exhibit 99.1
300 W. 6th St. One American Center Frost Bank Tower One Congress San Jacinto Center
Austin Market Update
September 10, 2013
Additional Information
In connection with the proposed transaction, Parkway Properties Inc. expects to file with the SEC a registration statement on Form S-4 that will include a joint proxy statement of Parkway and Thomas Properties that also constitutes a prospectus of Parkway, which joint proxy statement will be mailed or otherwise disseminated to Parkway and Thomas Properties shareholders when it becomes available. Parkway and Thomas Properties also plan to file other relevant documents with the SEC regarding the proposed transaction. INVESTORS ARE URGED TO READ THE
JOINT PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IF AND WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. You may obtain a free copy of the joint proxy statement/prospectus (if and when it becomes available) and other relevant documents filed by Parkway and Thomas Properties with the SEC at the SEC’s website at www.sec.gov. Copies of the documents filed by the companies will be available free of charge on their websites at www.pky.com and www.tpgre.com or by contacting Investor Relations at the companies (for Parkway at (407) 650-0593 and for Thomas Properties at (213) 613-1900).
Parkway and Thomas Properties and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. You can find information about Parkway’s executive officers and directors in Parkway’s definitive proxy statement filed with the SEC on April 4, 2013 in connection with its 2013 annual meeting of shareholders. You can find information about Thomas Properties’ executive officers and directors in Thomas Properties’ definitive proxy statement filed with the SEC on April 30, 2013 in connection with its 2013 annual meeting of shareholders. Additional information regarding the interests of such potential participants will be included in the joint proxy statement/prospectus and other relevant documents filed with the SEC if and when they become available. You may obtain free copies of these documents from Parkway or Thomas Properties using the sources indicated above.
This document shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. 2
The Case for Austin
CBS News (02/12) – One of the 10 best places to retire
Bloomberg (4/13) – America’s top
“boomtown”
Bloomberg Businessweek (09/12)
– Ranked #8 as Best US City
Forbes – Ranked the #1 Fastest Growing City in 2013
Forbes (11/12) – 3rd most migrated to City in America
Sizeup.com (10/12) –Ranked 5th for the number of technology startups per capita in US
New Geography (07/12) – One of the top 10 cities where a paycheck stretches the furthest
CQ Press (12/11) – 6th lowest crime rate among large cities
ULI (10/12) – Ranked #4 market to watch in 2013
Pitney Bowes (11/12) – Ranked #1 for projected % of household growth over the next five years
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Young, Educated, & Employed
Source: U.S. Bureau of the Census
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Entrepreneurship
Austin has a vibrant and quickly growing startup ecosystem with over 1,500 companies.
Yr. # of Companies VC Funding (1)
2011 86 $653.1M 2012 82 $620.7M
Patents Awarded to Austin Area Inventors (2)
Patents Awarded to Austin Area Inventors (2)
4000 3500 3000 2500 2000 1500 1000 500 0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: PricewaterhouseCooper/Venture Economics/NVCA MoneyTree Survey(1)
U.S. Patent & Trademark Office(2) 5
Technology – more stability
Tech industry started in 1987 with launch of SEMATECH which was an industry/gov’t venture to strengthen U.S. semi-conductor industry
IBM, Freescale, AMD, Samsung, Intel and Apple all have large presence in Austin
Austin is now home to over 4,400 technology companies that employ over 109,000 people (13.5% of the work force base)
Avg. earnings per job in tech sector is $115,361 compared to $52,488 for Austin economy as a whole
For every one new job created in the tech sector, the Austin economy gains an additional 2.5 jobs
Businesses like Capital Factory and Main Street Hub help drive emerging businesses
Tech employment expected to grow 9% between 2012-2017, adding 9,000 jobs
Source: Austin Chamber of Commerce: Technology Ecosystem 6
Major Employers
Apple – adding +3,500 jobs
Samsung—$4 billion facilities Visa – Global investment IT Center – 800 jobs
Source: Austin Chamber of Commerce 7
Quality of Life
Population Growth (1999 – 2009) (1)
Source: U.S. Bureau of the Census(1)
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Real Estate
3,135 Single family homes sold in July 2013. 29% more than 2012
Median home price $228,250. 8% more than July 2012
2.8 months of inventory in July 2013, 1.7 months less than July 2012
In July homes spent an average of 41 days on the market compared to 60 days a year earlier
Urban Land Institute revealed that Austin’s real estate market is the #4 best market to watch in the US.
While still considered a secondary market by most institutional investors, Austin has many characteristics of primary markets – technology companies, government, and educated workforce
Source: MLS Report from Austin Board of Realtors
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CBD Office Market Drivers(1)
University of Texas
Retail
Capitol Complex & Courthouses
Convention Center
Teaching Hospital/Medical School
Multi-family – “live, work, play”
Barriers to Entry
Source: Austin Chamber of Commerce(1)
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University of Texas(1)
Approximately 52,000 students
Approximately 24,000 faculty and staff
Continuing education enrollment 300,000
$17.15 billion endowment (#3 Nationally)
Approximately 450,000 alumni
12,000 degrees awarded yearly
$2.14 billion operating budget
Source: University of Texas at Austin(1)
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Capitol Complex & Courthouses
Capitol Complex includes 46 square blocks in downtown Austin
Complex includes office buildings, parking garages, museums and courthouses
Downtown includes federal, state and municipal courthouses
The new Federal Courthouse just opened in downtown (8 floors/252,000 SF)
Source: www.austintexas.gov/department/capitol-complex
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Convention Center
881,400 Gross Square Feet (6 city blocks)
Located in the heart of downtown
2 Garages (1,600 + parking spaces)
In 2012 the convention center hosted 148 total events that generated approximately 226,000 booked overnight hotel stays with a total attendance of slightly over 600,000
Source: www.austinconventioncenter.com/pressroom/facts.htm
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UT Medical School & Teaching Hospital
A combined effort among Travis County, University of Texas and Seton Healthcare
Medical school alone could create 15,000 jobs and generate $2 billion annually to the local economy
Expanded research facilities for biotech and pharmaceuticals
Likely located near Brackenridge Hospital and Erwin Center (central Austin near CBD)
Source: University of Texas at Austin Dell Medical School News
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Multifamily (CBD)
Over 3,200 apartments
Apartment occupancy is 96.9%
Over 500 apartments under construction
Average Rent = $2.19/sf/month
Over 1,000 condominiums
74% of condos sold
Average Condo Price = $624.19 (2012)
Over 9,800 residents now live downtown
Source: Capital Market Research, Austin Apartment Survey, Dec. 2012
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Multifamily (CBD)
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Living: Trending towards CBD
The Whitley
(2013)
The Monarch AMLI on 2nd The Austonian
(2008) (2008) (2010)
The Gables 360 Condos
Spring Condos (2008) W Austin
(2009) (2010) (2011) The Ashton Four Seasons
(2009) Residences
(2010)
CBD Housing driving tech downtown
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Barriers to Entry
Environmental constraints
Edwards Aquifer
Protected Species
Save our Springs
Entitlement Process
Capital View Corridor
Limited number of quality CBD sites
Market size constrains large developments
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Capitol view Corridor
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Austin Office Market(1)
Market Size 40.6 million Square Feet
Submarkets CBD – 9 mm SF (Class A – 4.1mm) SW – 8.6 mm SF (Class A – 5.4mm) NW – 15.7 mm SF (Class A – 9.7mm SF)
Features CBD – Live, Work, Play, UT, Capitol SW – Prox. to CBD, High Tech, Scenic NW – Dell, Growth Cos., Campus Setting
Source: CoStar(1)
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Austin Office Statistics
Source: CBRE Research 22
Class A CBD Office Buildings
Class A Primary Market
816 One American 515
Congress Austin Center Congress Center
300 W. 6th Street
Frost Bank Tower
Chase Tower
301 Congress
100 One San Jacinto
Congress Congress Center 24
Austin Thomas Portfolio
Frost Bank San Jacinto One Congress One American
Tower 300 West 6th Street Center Plaza Center
Submarket CBD CBD CBD CBD CBD
RSF 535,078 454,225 410,248 518,385 503,951
Year Built (Renovated) 2003 2001 1987 1987 1984 (1992)
Occupancy (6/30/2013) 94.8% 89.9% 81.2% 83.5% 75.9%
Quoted Rents (NNN) $32-35 $30-32 $25-28 $27-30 $25-28
Portfolio Highlights
Five Class A, Trophy assets comprising 2.4mm RSF All five assets are LEED EB Gold certified
Represents ~58% of Class A office inventory Anchored by a diverse, stable tenant base including
in CBD1 legal, financial services, insurance firms and
Centrally located in thriving downtown Austin CBD technology companies such as Facebook
Source: CoStar(1)
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Parkway Properties, Inc. 390 North Orange Avenue Suite 2400
Orlando, FL 32801
(407) 650-0593 www.pky.com