Austin + Dallas + Houston + Charlotte + Nashville + Atlanta + Denver
OFFICE B
ROUGHT
TO LIF
E
C o m p a n y P r e s e n t a t i o n
FEB'18
High-quality portfolio
Proven execution
Flexible balance sheet
Significant value creation opportunities
Experienced management team
WHY
TIER?
Focused strategy
Austin + Dallas + Houston + Charlotte + Nashville + Atlanta + Denver
3
Delivered 2017
DOMAIN 8
4
Service + Sustainability
Value Creation
Proven track record in publicly-
traded real estate companies
Successful history of investing &
creating value in target markets
Ability to complete complex
transactions
Demonstrated path toward long-
term value creation
Seven Target Growth Markets
High-growth, demand-driven
markets
Amenity-rich, high-density
submarkets – TIER1 submarkets
High-quality, Class A office
properties
Emphasis on LIVE.WORK.PLAY
environments
TIER ONE Property Services
Unparalleled customer service &
operational excellence
Operating & developing to highest
sustainability standards
A leader in BOMA 360
designations
Significant LEED & Energy Star
certifications
Focus + Strategy
Legacy District One, Dallas
Experience + Innovation
Domain 11, Austin (Rendering) Bank of America Plaza, Charlotte
Targeted Approach
5
Seven Target Growth Markets
TIER REIT targets high-growth, demand-driven TIER1 submarkets that will
benefit most from population and office-using employment growth
Denver
Houston
Austin
Atlanta
Nashville
Dallas
Charlotte
CBD
The Domain
Southwest
Westchase
The Galleria
Katy Freeway West
Uptown
SouthPark
Preston Center
Plano Legacy
Uptown Current market location
Midtown
Buckhead
CBD / LoDo
Platte River
Cherry Creek
CBD
West End
The Gulch
Target growth market
6
Approximately 96% of NOI derived from our
high-growth, demand-driven target markets1
High-Quality Portfolio
Additional Quality Indicators1
Including in-process development,
>25% of portfolio SF will be recently
constructed2
Enviable roster of investment-
grade tenants
Weighted average lease life
approaching 7 years
Domain 7 Bank of America Plaza
1 December 31, 2017 operating portfolio GAAP NOI, pro forma for acquisition of 96.5% economic interest in Domain Point on 1.4.18; sale of 500 East Pratt
on 2.13.18; Domain 8, Third + Shoal and Domain 11 at stabilization & ownership share; pending dispositions of Centreport Office Center and Loop Central;
and potential disposition of Eldridge Place anticipated by YE'18
2 Recently constructed includes properties delivered since 2012
NOI by
Market1
Austin 46%
Dallas 20%
Houston 14%
Charlotte 13%
Nashville 3% Other 4%
7
Acquired 2015
8
Domain 8
Development Results
Domain 11 (Rendering)
Aggregate
Value Creation:
$106mm to $128mm1
Third + Shoal (Rendering)
Creating ~$2.22 to $2.68/share of incremental value with minimal lease-up risk,
driving long-term cash flow growth1
1 Includes estimated value creation of Domain 8, Domain 11 and Third + Shoal using estimated stabilized NOI, assuming a 5.5%-6.0% exit capitalization rate
less actual or budgeted development costs, at ownership share for Third + Shoal and Domain 8
2 At ownership share
2017 2018 2019DeliveryTimeline
Domain 8
(Delivered)
Domain 11Third
+
Shoal
NA
V +
Dividen
d
Developments ~96% pre-leased2 & delivering at ~9%+ stabilized yields
9
Delivering 2018
THIRD + SHOAL
10
Domain 12 (Rendering)
Creating Value: Austin Future Development
Domain 12, Austin, TX
~320K net rentable SF
Fully designed & permitted
Domain 10, Austin, TX
~300K net rentable SF
Fully designed & permitted by 3.31.18
1 Development potential incremental value calculated using estimated stabilized NOI from above developments, assuming a 5.5%-6.0% exit capitalization
rate less estimated development costs
Domain 10 (Rendering)
Potential
value creation:
$162mm to $209mm1
Domain 9, Austin, TX
~300K net rentable SF
Fully designed & permitted by 3.31.18
Opportunity to create ~$3.38 to $4.35/share of incremental value through future development1
Domain 9 (Rendering)
NA
V +
Dividen
d
Approximate 8.5%+ yield on future development opportunities
11
Rendering
DOMAIN 8-12
12
BLOCK D & G
Conceptual renderings of
future redevelopment
13
DOMAIN POINT
9.5 acre expansion of
The Domain & future
redevelopment
14
Acquired 2015 & 2017Rendering
LD2
(future)
LD1
(existing)
LD3
(future)
15
Creating Value: Dallas Future Development
Legacy District, Plano, TX
~600K net rentable SF in two phases (Legacy District Two & Three)
Legacy District Two fully designed & permitted
1 Development potential incremental value calculated using estimated stabilized NOI from above developments, assuming a 5.5%-6.0% exit capitalization
rate less estimated development costs
Legacy District (Rendering)
Potential
value creation:
$82mm to $96mm1
Opportunity to create ~$1.71 to $2.00/share of incremental value through future development1
NA
V +
Dividen
d
Approximate 8.5%+ yield on future development opportunities
16
Creating Value: Leasing
Mark-to-Market Rents Stabilize Occupancy at 93%
In-place rents 11%-24% below market
for tenants expiring through 2019
Opportunity to lease up to 286K SF
of vacant space
1 Mark-to-market potential incremental value calculated using incremental estimated NOI from re-leasing SF expiring through 12.31.19 at Bank of America
Plaza and The Terrace at current market rates and a 6.0%-7.0% NOI exit capitalization rate less $50/SF estimated leasing capital
2 Stabilize occupancy potential incremental value calculated using estimated NOI generated from increasing occupancy of Two BriarLake Plaza, Eldridge
Place, and Burnett Plaza at 90% NOI margins of current market rates and a 6.0%-7.0% NOI exit capitalization rate less $50/SF estimated leasing capital
Bank of America Plaza BriarLake Plaza
Potential
incremental
value creation:
$136mm to $162mm1,2
NA
V +
Dividen
d
17
Acquired 2006
THE TERRACE
18
350
300
250
200
150
100
50
0
2018 2019 2020 2021 2022 Thereafter
$44
$86 $66
$310
$300
1 Data shown as of 12.31.17 pro forma for the pending disposition of Fifth Third Columbus; and the recast of our credit facility that closed on 1.18.18
2 Estimated equity value is based on common stock, restricted stock, and restricted stock units outstanding multiplied by consensus NAV of $22.05 per share
Capital Structure1
Debt Maturities ($mm)
Total net liquidity of $241mm
Mortgage debt
Unsecured bank debt
Capital structure as of 12.31.17 ($mm)
Total estimated
enterprise value:
$1,850
Mortgage Debt $ 196
Unsecured term loan 575
Unsecured revolver 35
Cash (15)
Total net debt $ 791
Estimated equity value2 1,059
Total est. enterprise value $ 1,850
43%
57%
$0 $0
19
Managing our Houston Presence
Houston Class A office property sales since 2017,
including known-pending sales, total over $3 billion
Loop Central currently under contract
with expected closing 1Q'18
Eldridge Place
POTENTIAL DISPOSITIONBriarLake Plaza
Minimal lease expirations through 2018
Properties fully operational following
Hurricane Harvey
New state-of-the-art lobbies being designed
in all three buildings, primarily funded
by insurance
Weighted average lease life of over six years
& minimal lease expirations through 2019
Prospective leasing activity is
picking up
Historically highest net rents in prime
Westchase submarket
20
Acquired 2014
5950 SHERRY LANE
21
Experienced Management Team
Significant real estate & public company experience spanning 30+ years
Jim Sharp
Chief Financial
Officer & Treasurer
Bill Reister
EVP & Chief
Investment Officer
Heath Johnson
Managing Director
Asset Management
Dallas Lucas
President & Chief
Operating Officer
Scott Fordham
Chief Executive
Officer & Director
Scott McLaughlin
Senior Vice President
Investor Relations
Our team is 100% committed to optimizing the value of TIER’s common stock
through execution of our strategic plan or pursuing other strategic alternatives,
including public or private execution
22
Delivering 2018Rendering
THIRD + SHOAL
23
Top-tier market with a highly educated workforce
combined with pro-business government policy
10.7% Class A vacancy, up from 9.4% in prior year
YoY: 13.9% Class A rent growth / 1.4mm SF net absorption
4Q’17: 0.8% Class A rent growth / 0.4mm SF net absorption
3.5mm SF under construction, ~58% pre-leased
Five-year forecast of 1.1% avg. annual rent growth
Austin
The Domain
The Terrace
Third + Shoal
The Terrace Third+Shoal (Rendering) Domain 7
Office-Using Employment & Population Growth1
Portfolio Snapshot Market Commentary1
1 Based on Moody’s Analytics, Bureau of Labor Statistics, CoStar Portfolio Strategy, and JLL as of 4Q’17
24
Dallas’ diversified economy, affordability, location and quality
of labor have put it on many corporate relocation lists
18.6% Class A vacancy, up from 18.2% in prior year
YoY: 5.6% Class A rent growth / 5.4mm SF net absorption
4Q’17: 0.2% Class A rent compression / 1.2mm SF net absorption
7.0mm SF under construction, ~60% pre-leased
Five-year forecast of 1.9% avg. annual rent growth
Dallas-Fort Worth
Burnett Plaza 5950 Sherry LaneLegacy District
5950 Sherry
Lane
Burnett
Plaza
Legacy
District
1 Based on Moody’s Analytics, Bureau of Labor Statistics, CoStar Portfolio Strategy, and JLL as of 4Q’17
Office-Using Employment & Population Growth1
Portfolio Snapshot Market Commentary1
25
Houston
Office demand will take time to return to normal following
energy-related headwinds and Hurricane Harvey
24.7% Class A vacancy, up from 21.1% in prior year
YoY: 1.1% Class A rent compression / 1.5mm SF net absorption
4Q’17: 1.4% Class A rent compression / (0.1mm) SF net absorption
Sublease inventory of 9.3mm SF as of 4Q’17
2.0mm SF under construction, ~69% pre-leased
BriarLake
Plaza
Eldridge
Place
BriarLake Plaza Eldridge Place
Office-Using Employment & Population Growth1
Portfolio Snapshot Market Commentary1
1 Based on Moody’s Analytics, Bureau of Labor Statistics, CoStar Portfolio Strategy, and JLL as of 4Q’17
26
Charlotte’s central location, affordable living costs and young,
educated workforce make it a banking and finance hub
13.0% Class A vacancy, up from 9.6% in prior year
YoY: 2.1% Class A rent growth / 1.1mm SF net absorption
4Q’17: 7.4% Class A rent growth / <0.1mm SF net absorption
0.9mm SF under construction, ~65% pre-leased
Five-year forecast of 3.1% avg. annual rent growth
Charlotte
Bank of
America Plaza
Office-Using Employment & Population Growth1
Portfolio Snapshot Market Commentary1
1 Based on Moody’s Analytics, Bureau of Labor Statistics, CoStar Portfolio Strategy, and JLL as of 4Q’17 for the Charlotte CBD
Bank of America Plaza
27
Nashville
Office-Using Employment & Population Growth1
Nashville's economic diversity, mix of private and public
industry, and low costs of business fuel office demand
6.4% Class A vacancy, up from 3.6% in prior year
YoY: 2.1% Class A rent growth / 1.1mm SF net absorption
4Q’17: 0.0% Class A rent growth / 0.2mm SF net absorption
1.3mm SF under construction, ~39% pre-leased
Five-year forecast of 1.4% avg. annual rent growth
Plaza at
MetroCenter
Portfolio Snapshot Market Commentary1
1 Based on Moody’s Analytics, Bureau of Labor Statistics, CoStar Portfolio Strategy, and JLL as of 4Q’17
Plaza at MetroCenter
Forward-Looking Statements
This presentation contains forward-looking statements, including discussion and analysis of the financial condition of us and our subsidiaries and
other matters. These forward-looking statements are not historical facts but are the intent, belief or current expectations of our management
based on their knowledge and understanding of our business and industry. 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. We intend
that such forward-looking statements be subject to the safe harbor provisions created by Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. These statements are not guarantees of future performance and are subject to risks, uncertainties and
other factors, some of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed
or forecasted in the forward-looking statements. Forward-looking statements that were true at the time made may ultimately prove to be incorrect
or false. We caution you not to place undue reliance on forward-looking statements, which reflect our management's view only as of the date of
this presentation. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of
unanticipated events or changes to future operating results.
Factors that could cause actual results to differ materially from any forward-looking statements made in the presentation include but are not
limited to: (i) market disruptions and economic conditions experienced by the economy or real estate industry as a whole and the local economic
conditions in the markets in which our properties are located; (ii) our ability to renew expiring leases and lease vacant spaces at favorable rates or
at all; (iii) the inability of tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business;
(iv) the availability of cash flow from operating activities to fund distributions and capital expenditures; (v) our ability to raise capital in the future
by issuing additional equity or debt securities, selling our assets or otherwise to fund our future capital needs; (vi) the availability and terms of
financing, including the impact of higher interest rates on the cost and/or availability of financing; (vii) our ability to strategically acquire, develop
or dispose of assets on favorable terms or at all; (viii) our level of debt and the terms and limitations imposed on us by our debt agreements; (ix)
our ability to retain our executive officers and other key personnel; (x) unfavorable changes in laws or regulations impacting our business or our
assets; and (xi) factors that could affect our ability to qualify as a real estate investment trust. The forward-looking statements should be read in
light of these and other risk factors identified in the “Risk Factors” section of our most recent Form 10-K, as filed with the Securities and Exchange
Commission.
The modeling, projections, analyses, and other forward-looking information prepared by CoStar Portfolio Strategy, LLC (“CoStar”) and presented
herein are based on financial and other information from public and proprietary sources, as well as various assumptions concerning future events
and circumstances that are speculative, uncertain and subject to change without notice. Actual results and events may differ materially from the
projections presented.
All CoStar materials set forth herein (“CoStar Materials”) speak only as of the date referenced and may have materially changed since such date.
CoStar does not purport that the CoStar Materials herein are comprehensive, and, while they are believed to be accurate, the CoStar Materials are
not guaranteed to be free from error, omission or misstatement. CoStar has no obligation to update any of the CoStar Materials included in this
document. All CoStar Materials are provided “as is,” without any guarantees, representations or warranties of any kind, including implied warranties
of merchantability, non-infringement, title and fitness for a particular purpose. To the maximum extent permitted by law, CoStar disclaims any and
all liability in the event any CoStar Materials prove to be inaccurate, incomplete or unreliable. CoStar does not sponsor, endorse, offer or promote
an investment in the securities of TIER REIT, Inc. You should not construe any of the CoStar Materials as investment, tax, accounting or legal advice.
High-quality portfolio
Proven execution
Significant value creation opportunities
INVESTMENT
RATIONALE
Flexible balance sheet
Focused strategy
Experienced management team
ir@tierreit.com
www.tierreit.com
972.483.2400
Austin + Dallas + Houston + Charlotte + Nashville + Atlanta + Denver