NEW SUPPLY, ABSORPTION AND VACANCY RATES

SUBMARKET REPORTATLANTA

www.colliers.com/atlanta

MARKET INDICATORS

Q1 2012 | NORTH FULTON

Nort

h F

ulton

TRENDS & HIGHLIGHTS

10%

11%

12%

13%

14%

15%

16%

(300,000)

(200,000)

(100,000)

0

100,000

200,000

300,000

1Q11 2Q11 3Q11 4Q11 1Q12

Absorption Deliveries Vacancy

Total SF 27,794,695

Vacancy Rate 14.7%

YTD Net Absorption 177,645

YTD Deliveries 0

Under Construction 0

Avg. Class A Rate $20.08

UPDATE Recent Transactions in the Market

SALES ACTIVITY

PROPERTY ADDRESS SALE PRICE SIZE SF PRICE / SF BUYER

Parkside Terrace $25,200,000 252,960 $99.62 Granite Properties3300 Old Milton Pkwy. $14,377,100 65,000 $221.19 Health Care REITLakeview 400 - 100 & 200 $10,400,000 135,161 $76.95 OA Development2775 Northwoods Pky. $5,300,000 32,192 $164.64 Carter Validus REIT

LEASING ACTIVITY

TENANT PROPERTY ADDRESS SIZE SF TYPE

Media Brokers International 200 Milton Park 26,882 Class A Renewal

GlobalCare Inc. 6875 Shiloh Rd. 26,040 Class C Renewal

Alliant Insurance 1120 Sanctuary Parkway 25,155 Class A Lease

Volkswagen-Audi Northwinds II 16,500 Class A Lease

• North Fulton ended the fi rst quarter with the third highest amount of space absorbed in Atlanta. The increase in occupied space can mostly be attributed to a handful of companies moving into full fl oors, and also minimal move-out activity by tenants in the submarket.

• With positive activity continuing in the submarket and demand remaining consistent, talk of new construction at Sanctuary Park has begun. Most likely the building, Stonebridge IV, would be constructed under a strong pre-leasing commitment.

• The average rental rate for offi ce space in North Fulton is much closer to trending upwards than other areas in the market. The submarket boasts the lowest offi ce vacancy rate of Atlanta’s major offi ce nodes.

Squa

re F

eet

Source: CoStar Property, Colliers Research

Q1 2012Projected

Q2 2012

VACANCY

NET ABSORPTION

CONSTRUCTION — —

RENTAL RATE

COLLIERS INTERNATIONAL

ATLANTA OFFICE SPECIALISTS:

www.colliers.com/atlanta

Accelerating success.

IN THE NEWS

• Metro area may see fi rst offi ce building in years: Sanctuary Park could be the location for Atlanta’s fi rst new offi ce building in almost four years. JP Morgan Chase is currently marketing a 175,000 square foot building at the park with hopes of landing one of several companies looking at North Fulton for new offi ce space. Construction of the new building will be heavily dependant on a large anchor tenant signing for at least 50% of the space. The project would be known as Stonebridge IV.

• Alcon eyes $200M, 300-job expansion: Alcon is looking to possibly expand its Johns Creek campus operations. It was recently reported the eye-care products maker could invest up to $200 million at its 850,000 SF manufacturing campus in North Fulton, adding 300 jobs as a result. Though the facility is centered around manufacturing, the expansion would add to North Fulton’s identity as a health-care hub and could continue luring other related companies to the area.

• Avalon lands its fi rst tenant: The former luxury retail and mixed-used development known as Prospect Park has landed its fi rst tenant under its new owner. North American Properties recently signed Whole Foods Markets to a 45,000 SF space along Old Milton Parkway. The tenant was previously committed to the project envisioned by Stan Thomas. North American Properties purchased the 100-acre property for $22.8 million following a foreclosure by Wells Fargo. Now with scaled back plans, Avalon is starting to ramp up its pre-leasing eff orts and going after previously committed retailers. The new owner is pushing for a fi rst phase completion by October 2013, including the grocery store.

Accelerating success.

COLLIERS INTERNATIONAL | ATLANTA OFFICE | NORTH FULTON LISTINGS

ROYAL CENTRE

1,777-52,875 SF LeaseLee Evans / Scott O’Halloran /

Deming Fish

200 WINDWARD FOREST

3,710 SF LeaseLee Evans / Scott O’Halloran /

Deming Fish

LAKE @ NORTHPOINT

2,000-15,623 SF LeaseLee Evans / Scott O’Halloran /

Deming Fish

KINGS LANDING OFFICE CTR.

1,775-22,576 SF LeaseWill Tyler / Deming Fish

AT A GLANCE | Prospect Park sells; renamed Avalon

• Foreclosed luxury retail and mixed-use development on 100-acres.

• North American Properties purchased property for $22.8 million with plans to downsize the development from 850,000 SF of retail to about 550,000 SF.

• Will include a mix of offi ce and for-sale residential in addition to retail.

• First phase completion planned for October 2013.

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 | NORTH FULTON