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Q2 2010 | CENTRAL PERIMETER

ATLANTA

SUBMARKET REPORT

TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 500,000 400,000 300,000 200,000 100,000 0 (100,000) (200,000) (300,000) (400,000) (500,000)

22% 20%

Total SF

28,276,414

Vacancy Rate

20.6%

YTD Net Absorption

153,544

18% 16% 2Q09

3Q09

4Q09

1Q10

2Q10

14%

YTD Deliveries

0

Under Construction

0

12% 10% Absorption

Deliveries

Avg. Class A Rate

$22.13

Source: CoStar Property

Vacancy

MARKET INDICATORS Q2 2010

NEXT QTR

UPDATE Recent Transactions in the Market SALES ACTIVITY

VACANCY PROPERTY ADDRESS

NET ABSORPTION CONSTRUCTION

RENTAL RATE

SALE PRICE

SIZE SF

PRICE / SF

BUYER

9000 Central Park

$31,955,979

204,632

$156.16

Cox Enterprises

41, 47, 53 Perimeter Ctr. E.

$14,864,999

279,788

$53.13

Atlanta Property Group

1200 Ashwood Pky.

$5,500,000 (forc.)

180,840

$30.41

Lennar Partners

Waterford Office Park

$4,600,000

44,760

$102.77

PS Energy Group

Central Perimeter

LEASING ACTIVITY

www.colliers.com/atlanta

TENANT

PROPERTY ADDRESS

SIZE SF

TYPE

Access Insurance

Three Ravinia

80,000

Class A Lease

Kimberly-Clark

The Pointe - 500

23,930

Class A Lease

Insight Global

Ashford Green I

17,146

Class A Renewal & Expansion

SBC Systems

South Terraces

13,181

Class A Renewal

Central Perimeter leads all submarkets in year-to-date office space absorbed. This is a complete reversal from the submarket’s performance at mid-year 2009 when it led Atlanta in the amount of occupied space lost.

The Atlanta Journal-Constitution’s move from its longtime Downtown location to 223 Perimeter Center was the largest move-in for second quarter at 127,823 SF.

The office vacancy rate in Central Perimeter is down 0.5% from the beginning of the year when vacancy peaked. Over 150,000 SF of space has been filled in the first half of 2010.

Leasing activity in the submarket remains steady, and is expected to continue this way through the remainder of the year.


MARKET REPORT | Q2 2010 | ATLANTA OFFICE | CENTRAL PERIMETER

SKYLINE REVIEW Space Available Direct Sublet 35

Source: CoStar Property

30

Floors

25 20 15 10 5

BUILDING RBA % LEASED LARGEST SPACE AVAIL. RENTAL RATE PER SF (Gross)

Concourse VI

Concourse V

Three Ravinia

Glenridge Highlands II

2002 Summit Blvd.

697,400 SF

687,107 SF

813,145 SF

415,000 SF

390,139 SF

82.7%

93.6%

81%

63.6%

91.1%

70,668 SF

12,900 SF

52,880 SF

192,518 SF

15,627 SF

$23.50-$24.50

$24.50

$21.59-$24.09

$24.50-$26.50

$25.00-$27.50

1

2

3

4

5

7000 Central Park

400 Northpark

One Ravinia

Two Ravinia

64 Perimeter Ctr. E

415,324 SF

586,256 SF

386,239 SF

386,596 SF

381,432 SF

87.1%

83.4%

73.9%

79.2%

10.6%

18,340 SF

24,632 SF

47,204 SF

24,199 SF

363,630 SF

$23.50-$24.50

$25.00-$25.50

$23.00-$25.00

$21.50-$23.50

$20.00-$21.00

6

7

8

9

10

35 30

Floors

25 20 15 10 5

BUILDING RBA % LEASED LARGEST SPACE AVAIL. RENTAL RATE PER SF (Gross)

P. 2

| COLLIERS INTERNATIONAL


MARKET REPORT | Q2 2010 | ATLANTA OFFICE | CENTRAL PERIMETER

7 2 4

5

6

1

8 9 3

10

1 1 2 5 3

2

3

4

4 6

PLANNED CONSTRUCTION

AERIAL LEGEND

1

3

Buildings by Number (see opposite page) MARTA Rail Line New Construction

POINTS OF INTEREST

4004 PERIMETER SUMMIT

600,000 SF Planning Stage Developer: Barry Real Estate

400,000 SF Planning Stage Developer: Hines Properties

2

1 Perimeter Mall

4 Scottish Rite

2 Northside Hospital

5 Perimeter Place

St. Joseph’s 3 Hospital

240 PERIMETER CTR. PKWY.

6 Marist High School

4

ABERNATHY 400

TWO NORTH PLACE

350,000 SF Planning Stage Delivering TBD Developer: Ackerman/Russell

230,000 SF Planning Stage Delivering TBD Developer: Crocker Partners COLLIERS INTERNATIONAL |

P. 3


MARKET REPORT | Q2 2010 | ATLANTA OFFICE | CENTRAL PERIMETER

IN THE NEWS • Access

480 offices in 61 countries on 6 continents

• Wood

United States: 135 Canada: 39 Latin America: 17 Asia Pacific: 194 EMEA: 95

Insurance inks lease at Three Ravinia: One of the largest deals this year was recently signed at Three Ravinia. Access Insurance Holdings will be leasing 80,000 SF in the 31-story office tower. The company plans to relocate from its current offices in Brookhaven, moving into Three Ravinia in October. The transaction will boost occupancy in the building from 78% to 88%. It is a big win for Colonial Properties Trust which recently became sole owner of the property in November of last year. Partners buys 2.5-acre tract for apartments in Sandy Springs: Wood Partners recently purchased a 2.5-acre site and plans to develop a 205,000 SF multi-family project, including 168-units and 20,000 SF of retail. The project will be located at the intersection of I-285 and Glenridge Drive, close to “Pill Hill”—a cluster of hospitals and medical office—and should be completed in a year.

• Belgian

solar company moving HQ to Atlanta: Central Perimeter has been chosen as the new headquarters location for Belgian solar company Enfinity. The company will be leaving its Sacramentobased office and will lease approximately 6,500 SF at Concourse Corporate Center; with possible expansion in the future. Georgia Tech and Hartsfield-Jackson International Airport were cited as the main reasons for Enfinity choosing Atlanta for its relocation. Enfinity joins Suniva and MiaSole as other solar companies who have chosen metro Atlanta for their business operations.

$2 billion in annual revenue

• Over 2 billion square feet under

management • Over 15,000 professionals

UNITED STATES: AT A GLANCE | Hammond Half-Diamond Interchange •

Half-diamond interchange: Northbound entrance to GA 400 from Hammond Drive, Southbound exit from GA 400 to Hammond Drive.

Expected to relieve congestion at GA 400 and I-285.

Hammond Drive bridge will be replaced and raised higher to make room for future expansion of GA 400 lanes.

Project will cost an estimated $18 million to complete; completion date scheduled for Fall 2011.

Colliers International 1349 West Peachtree Street Suite 1100 Atlanta, Georgia, 30309 TEL +1 404 888 9000 FAX +1 404 870 2845

COLLIERS INTERNATIONAL ATLANTA OFFICE SPECIALISTS: Bob Allen

Bob Mathews

Neal Baker

Craig Mendel

Patrick Braswell

Scott O’Halloran

Lee Evans

Hugh Pafford

Russ Jobson

Jodi Selvey

Nicole Kamen

Fred Sheats

Jeff Kelley

Pete Shelton

Brett Kingman

Andrew Walker

Michael Lipton

Bob Ward

COLLIERS INTERNATIONAL | ATLANTA OFFICE | CENTRAL PERIMETER LISTINGS

219 PERIMETER CTR. 4,942-21,947 SF Sublease Bob Mathews / Fred Sheats 8215 ROSWELL RD. Bldgs. 200, 300, 600, 1000, 1100 10,000 SF each Sale Hugh Pafford / Jodi Selvey

www.colliers.com/atlanta

1455 LINCOLN PKWY. 4,392 SF Sublease Brett Kingman / Russ Jobson 6160 PEACHTREE DUNWOODY

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 firm of Colliers International Property Consultants, an affiliation of independent companies with over 480 offices throughout more than 61 countries worldwide.

2,217 SF Sublease Fred Sheats 5620 GLENRIDGE 84,500 SF Lease/Sale Hugh Pafford

Accelerating success.


2Q 2010 | Atlanta Central Perimeter Office | Market Report