NEW SUPPLY, ABSORPTION AND VACANCY RATES

SUBMARKET REPORTATLANTA

www.colliers.com/atlanta

MARKET INDICATORS

Q1 2012 | BUCKHEAD

Buckh

ead

TRENDS & HIGHLIGHTS

14%15%16%17%18%19%20%21%22%

050,000

100,000150,000200,000250,000300,000350,000400,000

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

3399 Peachtree $59,300,000 348,152 $170.33 Parmenter Realty3314 Peachtree Rd./Land $9,000,000 9,187 $979.65 Kurkin Forehand Brandes3330 Peachtree Rd. $5,500,000 62,499 $88 Pope & Land

LEASING ACTIVITY

TENANT PROPERTY ADDRESS SIZE SF TYPE

AmWINS Colemont 3630 Peachtree 28,259 Class A Lease

Citigroup The Pinnacle 27,126 Class A Lease

Asurion Piedmont Center 6 20,000 Class A Lease

Stephens Inc. 3344 Peachtree 12,475 Class A Lease

• Buckhead ended the fi rst quarter of 2012 with just over 104,000 SF absorbed. Move-in activity was somewhat quiet with Kids II accounting for almost all of the space fi lled in the quarter at 102,818 SF.

• The offi ce vacancy rate in Buckhead has seen the largest drop of any other submarkets compared to this time last year. Over this period, Buckhead’s vacancy rate dropped 3.3%.

• Buckhead’s offi ce leasing activity remained steady in fi rst quarter; however, the submarket saw less activity than other areas such as Central Perimeter, North Fulton and Northwest Atlanta. This could be due to the number of more aff ordable space options available in these other areas.

• Buckhead is the most prominent submarket where previously signed transactions, some dating over a year ago, are now taking occupancy. Kids II was an example of this. The submarket’s absorption levels will be boosted by this move-in activity over the next six months.

Squa

re F

eet

Source: CoStar Property, Colliers Research

Q1 2012Projected

Q2 2012

VACANCY

NET ABSORPTION

CONSTRUCTION — —

RENTAL RATE —

Total SF 20,551,189

Vacancy Rate 18.3%

YTD Net Absorption 104,345

YTD Deliveries 0

Under Construction 0

Avg. Class A Rate $24.66

1 2

3

4

67

8

9

10

1

23

4

5

6

78

91011

12

5

SKYLINE REVIEW

50

45

40

35

30

25

20

15

10

5

Space Available Direct Sublet

Flo

ors

BUILDING 3344 Peachtree Atlanta Plaza 3630 Peachtree Two Alliance Center Tower Place 100

RBA 483,726 SF 650,827 SF 436,309 SF 493,201 SF 609,936 SF

TYPICALFLOOR SIZE 25,358 SF 24,070 SF 28,259 SF 25,000 SF 21,000 SF

% LEASED 97.6% 67.3% 59.2% 92% 82.2%

LARGESTSPACE AVAIL. 13,405 SF 194,398 SF 84,777 SF 24,736 SF 20,610 SF

RENTAL RATEPER SF (Gross) $34.00-$35.00 $26.50 $33.00-$34.50 $32.22-$35.22 $23.50-$24.50

1 2 3 4 5

1

2

5

34

P. 2 | COLLIERS INTERNATIONAL

MARKET REPORT | Q1 2012 | ATLANTA OFFICE | BUCKHEAD

Buildings by Number(see opposite page)

MARTA Rail Line

New Construction

POINTS OF INTEREST

Ritz Carlton

IntercontinentalHotel

Grand Hyatt

JW Marriott

Buckhead Village

Lenox Mall

Phipps Plaza

LenoxMarket Place

Atlanta HistoryCenter

Buckhead Station

Tower Walk

AERIAL LEGEND

1

2

3

4

5

6

7

8

9

10

11

12

Terminus 100 Terminus 200 Phipps Tower The Lenox Bldg. Prominence inBuckhead

581,874 SF 564,850 SF 472,267 SF 348,152 SF 424,309 SF

23,529 SF 24,400 SF 25,000 SF 18,154 SF 22,332 SF

98.6% 90.2% 18.4% 82.3% 93.6%

13,974 SF 24,800 SF 200,904 SF 31,334 SF 10,423 SF

$34.03-$35.28 $31.75-$33.00 $34.00 $26.00-$28.00 $27.00

6 7 8 9 10

Source: CoStar Property

ACTIVE PROJECTS

UGA Terry Collegeof Business Campus

BUCKHEAD ATLANTA$700M Mixed-Use Project51,000 SF Boutique Offi ce311,500 SF Retail370 Luxury Apartment UnitsDelivering 2013Developer: Oliver McMillan

CITYPLACEProposed Condo Development16-acre TractForeclosed by Wells Fargo 2009Currently For Sale

PRESERVE PROP. SITEProposed Luxury Apartments2.5-acresUp to 250 unitsDeveloper: Preserve Properties

3330 PEACHTREEMixed-Use Project100,000-200,000 SF Offi ceHotel/Restaurant/Multi-FamilyDevelopers: Regent Partners/ Pope & Land

JLB PARTNERS SITEProposed Luxury Apartments373 units6.5-acresApproximately $60M ProjectDeveloper: JLB Partners LP

1

5

3

4

2

MARKET REPORT | Q1 2012 | ATLANTA OFFICE | BUCKHEAD

COLLIERS INTERNATIONAL | P. 3

UNITED STATES:

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

COLLIERS INTERNATIONAL

ATLANTA OFFICE SPECIALISTS:

www.colliers.com/atlanta

Accelerating success.

IN THE NEWS

• Long-awaited Buckhead interchange revamp starts: The interchange of Georgia 400 and I-85 is being reconstructed to allow southbound motorists to access each thoroughfare directly without using arterial roads. For over 20 years, southbound motorists have had to exit GA 400 and/or I-85, then access arterial roads such as Sidney Marcus Blvd., Buford Hwy. and Lenox Rd. to gain access to I-85 and GA 400 northbound, respectively. The new interchange will relieve congestion on the arterial roads and keep traffi c moving more freely. The GDOT hopes to have the project completed be the end of 2013.

• Buckhead Atlanta expected to boost area retail: The new Buckhead Atlanta development is scheduled to begin reconstruction in the next couple of months. Once underway, the area south of Piedmont Road will begin carving out the landscape for a new retail destination in Buckhead. Despite the increased competition for customers, other retail landlords in the area believe the new project will have a positive aff ect on their existing properties, and solidify Buckhead as Atlanta’s premier retail destination. Once completed, Buckhead Atlanta will be the start of a retail corridor along Peachtree Road, extending all the way to Phipps Plaza and Selig Properties’ Buckhead Triangle.

• Lenders take back two Buckhead offi ce buildings: Following failed negotiations to restructure debt, two offi ce buildings with diff erent owners were recently foreclosed upon. Securities Centre, which was purchased back in 2006 was foreclosed in November 2011 by Bank of America; and Resurgens Plaza, also purchased in 2006, went back to its lender CWCapital in December 2011.

Accelerating success.

AT A GLANCE | Buckhead Atlanta

COLLIERS INTERNATIONAL | ATLANTA OFFICE | BUCKHEAD LISTINGS

• New owner Oliver McMillan will redevelop project formerly known as ‘Streets of Buckhead’

• Purchased for $400 million; plans to invest an additional $300 million.

• Urban village concept to include 311,500 SF of retail and restaurants; 51,000 SF of boutique offi ces; and two 20-story apartment complexes.

• Work on the project to resume around the spring of 2012, with a target opening in 2014.

PEACHTREE PALISADES

1,417 - 47,647 SF LeaseLee Evans /

Scott O’Halloran

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 | BUCKHEAD