NEW SUPPLY, ABSORPTION AND VACANCY RATES

SUBMARKET REPORTATLANTA

www.colliers.com/atlanta

MARKET INDICATORS

Q1 2012 | NORTHEAST ATLANTA

Nort

heast

TRENDS & HIGHLIGHTS

12%

14%

16%

18%

20%

22%

(150,000)

(100,000)

(50,000)

0

50,000

100,000

150,000

200,000

1Q11 2Q11 3Q11 4Q11 1Q12

Absorption Deliveries Vacancy

Total SF 23,409,092

Vacancy Rate 19.8%

YTD Net Absorption (87,045)

YTD Deliveries 0

Under Construction 344,476

Avg. Class A Rate $19.56

UPDATE Recent Transactions in the Market

SALES ACTIVITY

PROPERTY ADDRESS SALE PRICE SIZE SF PRICE / SF BUYER

4205 River Green Pkwy. $17,925,000 125,800 $142.49 Cole Real Estate Inv.6700 Sugarloaf Pkwy. $7,455,344 90,350 $82.52 Blackstone Real Estate2750 Meadow Church Pkwy $4,337,757 51,131 $84.84 Blackstone Real Estate1 Technology Pkwy. $4,125,000 54,946 $75.07 Acadia Healthcare

LEASING ACTIVITY

TENANT PROPERTY ADDRESS SIZE SF TYPE

CCI 3795 Data Dr. 55,000 Class B Lease

The Network 333 Research Ct. 34,000 Class B Renewal

LMS Intellibound 6525 The Corners Pky. 20,000 Class A Lease

Terminix International 3790 Data Dr. 15,762 Class B Renewal

• After two consecutive quarters of positive absorption, Northeast Atlanta saw a net loss of tenants in the fi rst quarter. Occupancy dropped by just over 87,000 square feet this period. As a result, vacancy increased to 19.8%.

• Offi ce leasing demand has yet to take hold in Northeast Atlanta; unlike neighboring submarkets such as North Fulton and Central Perimeter. The lack of activity is a product of the modest recovery. Atlanta’s more desirable submarkets are seeing the bulk of the leasing activity currently.

• Through the end of the year, the same results are expected to continue in Northeast Atlanta. Offi ce absorption, whether it be positive or negative, will be restrained. The submarket’s offi ce vacancy will hover around the 20% mark until a full recovery takes hold.

Squa

re F

eet

Q1 2012Projected

Q2 2012

VACANCY

NET ABSORPTION

CONSTRUCTION — —

RENTAL RATE

Source: CoStar Property, Colliers Research

COLLIERS INTERNATIONAL

ATLANTA OFFICE SPECIALISTS:

www.colliers.com/atlanta

Accelerating success.

IN THE NEWS

• United Healthcare seeks 86K for new call center: United Healthcare is in the market for 86,000 SF to house a new call center in Northeast Atlanta. This would expand the company’s presence in the submarket where it already occupies almost 74,000 SF in the Peachtree Corners area. The new space is anticipated to be somewhere near Gwinnett Place Mall, possibly at Satellite Place.

• Assurant adding jobs, expanding data center: Insurance provided Assurant is expanding its operations in metro Atlanta including adding up to 100 jobs at its Duluth call center in Northeast Atlanta. The jobs will be in customer service to support the company’s Specialty Property unit which accounts for 57% of Assurant’s net operating income.

• RockTenn to add 500 jobs, expand Norcross HQ: RockTenn just recently announced a headquarters expansion in the Northeast Atlanta submarket. The company is consolidating its offi ces in Chicago and St. Louis, bringing 500 new jobs to metro Atlanta. The expansion comes on the heels of RockTenn’s acquisition of Smurfi t-Stone Container Corporation. The state of Georgia and Gwinnett County off ered $15.7 million in incentives for RockTenn to expand its corporate headquarters here. Accounting, fi nance, information technology and supply chain jobs will be relocated to the new Atlanta headquarters. RockTenn will occupy 68,666 SF at Duke Realty’s Hampton Green offi ce building. UPDATE: RockTenn leases an additional 14,471 SF at Hampton Green.

Accelerating success.

COLLIERS INTERNATIONAL | ATLANTA OFFICE | NORTHEAST ATLANTA LISTINGS

230 SCIENTIFIC DR

3,612-20,436 SF LeaseLee Evans

PEACHTREE CORNERSCORPORATE CTR.

6,040-20,859 SF LeaseScott O’Halloran /

Deming Fish

250 SCIENTIFIC DR

4,776-8,139 SF LeaseLee Evans

454 SATELLITE BLVD

2,815-18,762 SF Lease/SaleJodi Selvey /

Jill Bomar

680 ENGINEERING

7,440-14,845 SF LeaseLee Evans

SUGARLOAF VII

5,100 SF LeaseJeff Kelley

AT A GLANCE | Primerica to move to new Gwinnett HQ

• Build-to-suit headquarters to be built for Primerica by Duke Realty.

• Building to consist of 344,476 SF on 30-acres. First building to be developed in Duke Realty’s Legacy offi ce park.

• Primerica to consolidate from its current headquarters on Breckinridge Boulevard. New facility will help the company streamline its operations.

• Expected completion April 2013.

• $1.5 billion in annual revenue

• Over 2.2 billion square feet under management

• Over 13,000 professionals

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

UNITED STATES:

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

MARKET REPORT | Q1 2012 | ATLANTA OFFICE | NORTHEAST ATLANTA