NEW SUPPLY, ABSORPTION AND VACANCY RATES

SUBMARKET REPORTATLANTA

www.colliers.com/atlanta

MARKET INDICATORS

Q1 2012 | DOWNTOWN

Dow

nto

wn

TRENDS & HIGHLIGHTS

12%

13%

14%

15%

16%

17%

18%

(300,000)

(250,000)

(200,000)

(150,000)

(100,000)

(50,000)

0

50,000

1Q11 2Q11 3Q11 4Q11 1Q12

Absorption Deliveries Vacancy

UPDATE Recent Transactions in the Market

SALES ACTIVITY

PROPERTY ADDRESS SALE PRICE SIZE SF PRICE / SF BUYER

180 Peachtree St. (Offi ce) $94,750,000 338,000 $280.33 Carter Validus REITOne Georgia Center $48,600,000 375,000 $129.60 Govt. Properties TrustHurt Plaza $17,500,000 436,340 $40.11 Boxer Property44 Broad Street $3,800,000 128,502 $29.57 Williams-Russell & John.

LEASING ACTIVITY

TENANT PROPERTY ADDRESS SIZE SF TYPE

Georgia Chamber of Commerce 270 Peachtree 27,848 Class A Lease

Sherry Bryant LLC 139 Ralph McGill Blvd. 20,451 Class C Lease

Lutheran Services of GA 100 Edgewood Ave. 18,268 Class B Lease

GCH Technology Group 270 Peachtree 8,218 Class A Lease

• Offi ce occupancy in Downtown decreased for the sixth time in seven quarters. Over this stretch of time the submarket’s vacancy rate has increased by almost 2%; which amounts to 520,000 square feet of vacant space added.

• Downtown continues to lag when compared to Atlanta’s other offi ce submarkets. Signifi cant leasing transactions have been few and far between in the CBD. The inactivity is a product of the sluggish recovery. Also, the submarket continues to lose out to neighboring submarkets such as Midtown and Buckhead because companies want to locate in areas where they can recruit young talent.

• Not much is expected to change for the submarket through the end of this year. Leasing will likely remain weak at least until the overall offi ce market in Atlanta has fully recovered.

Squa

re F

eet

Total SF 27,720,826

Vacancy Rate 16.9%

YTD Net Absorption (87,585)

YTD Deliveries 0

Under Construction 0

Avg. Class A Rate $19.67Source: CoStar Property, Colliers Research

Q1 2012Projected

Q2 2012

VACANCY

NET ABSORPTION

CONSTRUCTION — —

RENTAL RATE

SKYLINE REVIEW

60

55

50

45

40

35

30

25

20

15

10

5

Space Available Direct Sublet

Flo

ors

BUILDING Bank of America Plaza SunTrust Plaza Georgia-Pacifi cCenter 191 Peachtree Centennial Tower

RBA 1,287,997 SF 1,249,022 SF 1,133,840 SF 1,209,721 SF 638,731 SF

TYPICALFLOOR SIZE 22,791 SF 25,000 SF 20,000 SF 24,220 SF 18,105 SF

% LEASED 62.3% 94.6% 88.4% 83.8% 78.9%

LARGESTSPACE AVAIL. 233,060 SF 25,005 SF 91,067 SF 102,045 SF 60,638 SF

RENTAL RATEPER SF (Gross) $26.60-$27.60 $32.75-$34.75 $21.00-$22.00 $28.00 $17.00-$22.00

1 2 3 4 5

1 2 34

5

6

7

910

13

45

67

8

9

10

1112

1

2

2

13

14

15163

8

P. 2 | COLLIERS INTERNATIONAL

MARKET REPORT | Q1 2012 | ATLANTA OFFICE | DOWNTOWN

Buildings by Number(see opposite page)

MARTA Rail Line

New Construction

AERIAL LEGEND

100 Peachtree Marquis One North Tower 270 Peachtree 55 Park Place

622,301 SF 460,437 SF 302,951 SF 325,000 SF 553,018 SF

19,600 SF 18,101 SF 14,121 SF 13,816 SF 29,130 SF

35.3% 83.1% 64.9% 95.7% 74.2%

193,550 SF 18,413 SF 62,470 SF 27,848 SF 278,716 SF

$17.50-$20.50 $20.50-$21.50 $18.50-$19.50 $18.00-$19.00 $18.00

6 7 8 9 10

Source: CoStar Property

POINTS OF INTEREST

Georgia TechPhilips Arena2 10

Atlanta Civic Center3 11Georgia WorldCongress Center

Georgia Dome1 9 The Varsity

CNN Center4 Sweet AuburnCurb Market12

5 CentennialOlympic Park Georgia State University13

Georgia Aquarium Underground Atlanta6 14

State CapitalWorld of Coke7 15

Turner Field8 The Fox Theater 16

E Q U I T A B L E

CIVIL RIGHTS MUSEUM100,000 SF$125 million projectConstruction pending

NOTABLE PROJECTS

50 ALLEN PLAZA870,914 SFProposedLand acquired Spring 2012New Owner: Regent Partners

COLLEGE FOOTBALLHALL OF FAME50,000 SFDelivering Spring 2013

2

3

1

MARKET REPORT | Q1 2012 | ATLANTA OFFICE | DOWNTOWN

COLLIERS INTERNATIONAL | P. 3

COLLIERS INTERNATIONAL

ATLANTA OFFICE SPECIALISTS:

www.colliers.com/atlanta

Accelerating success.

IN THE NEWS

• Downtown project nixed: A leasing transaction announced at the end of 2011 which would have consolidated 500 Georgia Department of Labor employees to the vacant 250 Piedmont offi ce tower has fallen through according to a recent news article. The lease would have been Downtown’s largest in some time. Governor Deal’s proposal to streamline several state agencies is said to be a reason for the lease not getting completed. For now the 362,300 SF offi ce tower remains vacant.

• Atlanta Life selling downtown headquarters to Georgia State: Atlanta Life Financial Group is set to sell its longtime downtown headquarters to Georgia State in the next few weeks. The 105,323 SF offi ce building located at 100 Auburn Ave. has been owned by Atlanta Life since 1980. Georgia State plans to acquire the building as part of its ongoing campus expansion. The building is envisioned to become the new of home of GSU’s Honors College. Once the sale is complete, Atlanta Life will move to another location within the submarket; leasing rather than owning its new offi ce.

• Regent Partners buys 50 Allen Plaza: Regent Partners recently purchased the land site for 50 Allen Plaza paying $4.5 million for the 1.23-acre parcel. The site was part of Barry Development’s nine block Allen Plaza project, but fell into foreclosure following the economic downturn. Regent is in a joint venture with Worthington Hyde Partners to develop the site but has no immediate plans to do so.

• Cousins remakes ACS building as data center: Cousins Properties is doubling its data center footprint at the American Cancer Society building. The company plans to invest at least $200 million to convert 170,000 SF of offi ce space into data center space. This will result in almost a third of the 1-million square foot building being equipped to handle data center users. Cousins’ strategy is to take advantage of demand in the Atlanta market for this type of space. The building’s 100,000 SF fl oor plates and 27 fi ber network providers make it an attractive option for data users.

Accelerating success.

AT A GLANCE | Bank of America Plaza Forecloses

COLLIERS INTERNATIONAL | ATLANTA OFFICE | DOWNTOWN LISTINGS

• 1.3 million square foot Class A offi ce tower foreclosed February 2012; tallest building in the U.S. to be foreclosed on since the fi nancial markets froze in 2007.

• Title secured by credit bid of $235 million by LNR Partners on behalf of the debt holder JP Morgan Chase.

• Property auctioned at a 46% discount of what former owner BentleyForbes Group paid in ‘06.

• Repositioning of the 1,023-foot skyscraper will likely begin second quarter 2012.

• The offi ce building is currently 62.8% leased.

HERNDON PLAZA

105,323 SF SalePete Shelton

151 SPRING ST.

19,000 SF SaleJodi Selvey /Michael Lipton

UNITED STATES:

Colliers InternationalTwo Midtown Plaza | Suite 11001349 West Peachtree Street, NEAtlanta, Georgia, 30309TEL +1 404 888 9000FAX +1 404 870 2845

This market report is a research document of Colliers International. Information herein has been deemed reliable and no representation is made as to the accuracy thereof. Colliers International-Atlanta, Inc., and certain of its subsidiaries, is an independently owned and operated business and a member fi rm of Colliers International Property Consultants, an affi liation of independent companies with over 520 offi ces throughout 62 countries worldwide.

522 offi ces in 62 countries on 6 continentsUnited States: 147Canada: 37Latin America: 19Asia Pacifi c: 201EMEA: 118

• $1.8 billion in annual revenue

• Over 2.5 billion square feet under management

• Over 12,000 professionals

Bob Allen Bob Mathews

Jill Bomar Craig Mendel

Lee Evans Scott O’Halloran

Deming Fish Hugh Paff ord

Huston Green Jodi Selvey

Tim Huff man Fred Sheats

Russ Jobson Pete Shelton

Jeff Kelley Hayes Swann

Drew Lavine Will Tyler

Michael Lipton Andrew Walker

Nicole Littleton Bob Ward

MARKET REPORT | Q1 2012 | ATLANTA OFFICE | DOWNTOWN