NEW SUPPLY, ABSORPTION AND VACANCY RATES

SUBMARKET REPORTATLANTA

www.colliers.com/atlanta

MARKET INDICATORS

Q22010

NEXTQTR

VACANCY —

NET ABSORPTION

CONSTRUCTION — —

RENTAL RATE

Q2 2010 | MIDTOWN

Mid

tow

n

TRENDS & HIGHLIGHTS

(100,000)0

100,000200,000300,000400,000500,000600,000700,000800,000

2Q09 3Q09 4Q09 1Q10 2Q10 10%

12%

14%

16%

18%

20%

22%

24%

Absorption Deliveries Vacancy

Total SF 19,296,867

Vacancy Rate 22.1%

YTD Net Absorption (28,680)

YTD Deliveries 752,710

Under Construction 0

Avg. Class A Rate $23.61Source: CoStar Property

UPDATE Recent Transactions in the Market

SALES ACTIVITY

PROPERTY ADDRESS SALE PRICE SIZE SF PRICE / SF BUYER

Campanile $35,000,000 (U/C) 446,000 $78.48 Dewberry Capital1315 Peachtree St. (‘09) $6,600,000 55,000 $120 Perkins & Will728-736 W. Peachtree St. $2,299,000 29,400 $78.20 Midtown Opera, LLC977 Ponce de Leon Ave. $1,643,000 15,436 $106.44 Clare Jay LLC

LEASING ACTIVITY

TENANT PROPERTY ADDRESS SIZE SF TYPE

Kilpatrick Stockton 1100 Peachtree 206,140 Class A Renewal

Fisher & Phillips 1075 Peachtree 49,222 Class A Lease

vocalocity 1375 Peachtree 28,017 Class A Sublease

Engauge Marketing Promenade II 21,983 Class A Expansion

• Second quarter offi ce occupancy dropped by 56,789 SF in Midtown. The submarket’s absorption activity has been bouncing from positive to negative over the past year. This is expected to continue through the remainder of 2010.

• Midtown is one of three offi ce submarkets under performing from last year’s absorption totals.• The vacancy rate in Midtown increased slightly between quarters; up only 0.3%. Compared to this

time last year, the rate is up 2.7%. The amount of space available in the submarket remains in record territory at 4.6 million square feet.

• Despite inconsistent activity and record vacancy, Midtown’s average rates are trending upwards.

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SKYLINE REVIEW

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Space Available Direct Sublet

Flo

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BUILDING One AtlanticCenter 1180 Peachtree 1075 Peachtree Promenade II 1100 Peachtree

RBA 1,100,312 SF 670,700 SF 752,710 SF 774,344 SF 581,833 SF

% LEASED 75.9% 92.5% 22.6% 52.4% 84.2%

LARGESTSPACE AVAIL. 126,779 SF 15,740 SF 523,654 SF 345,338 SF 83,020 SF

RENTAL RATEPER SF (Gross) $28.20-$34.20 $33.11-$36.61 $36.00-$38.00 $26.50 $24.00-$30.00

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P. 2 | COLLIERS INTERNATIONAL

MARKET REPORT | Q2 2010 | ATLANTA OFFICE | MIDTOWN

Buildings by Number(see opposite page)

MARTA Rail Line

New Construction

POINTS OF INTEREST

Colony Square

Federal Reserve

Margaret MitchellHouse & Museum

Technology Square

The Fox Theater

The Varsity

Georgia Tech

Atlantic Station

Center forPuppetry Arts

Woodruff ArtsCenter

Ansley Park

Savannah Collegeof Art & Design

AERIAL LEGEND

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999 Peachtree 271 17th Street The Proscenium Atlantic CenterPlaza Campanile Bldg.

621,908 SF 548,039 SF 533,135 SF 499,601 SF 444,322 SF

77.8% 40.6% 96.6% 79.9% 13.9%

52,965 SF 157,820 SF 25,393 SF 44,912 SF 220,348 SF

$27.00-$29.00 $31.00-$32.00 $30.00-$32.00 $23.00-$30.00 $29.50-$30.50

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Source: CoStar Property

1075 PEACHTREE ST.752,710 SFDelivered 1st Qtr. 2010Developer: Selig/Daniel JV

271 17TH STREET534,120 SFDelivered April 2009Developer: AIG Global/Carter

NEW CONSTRUCTION

PLANNED CONSTR.

1400 PEACHTREE400,000-500,00 SF Offi ce TowerMixed-Use DevelopmentDeveloper: Shailendra Group/ Jamestown Properties

METROPOLITAN CENTER570,000 SF Offi ce TowerMixed-Use DevelopmentDeveloper: Daniel Corp/MetLife/ Selig Company

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MARKET REPORT | Q2 2010 | ATLANTA OFFICE | MIDTOWN

COLLIERS INTERNATIONAL | P. 3

UNITED STATES:

Colliers International1349 West Peachtree StreetSuite 1100Atlanta, Georgia, 30309TEL +1 404 888 9000FAX +1 404 870 2845

COLLIERS INTERNATIONAL

ATLANTA OFFICE SPECIALISTS:

480 offi ces in 61 countries on 6 continentsUnited States: 135Canada: 39Latin America: 17Asia Pacifi c: 194EMEA: 95

• $2 billion in annual revenue

• Over 2 billion square feet under management

• Over 15,000 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 480 offi ces throughout more than 61 countries worldwide.

www.colliers.com/atlanta

Accelerating success.

IN THE NEWS

• Dewberry puts Campanile under contract: The Atlanta Business Chronicle confi rmed Atlanta investor John Dewberry is on his way to becoming the new owner of Campanile Plaza. The 446,000 SF offi ce tower located in the heart of Midtown is under contract for $35 million, a bargain by any standard. The last sale of the building occurred in 2007 for three times this amount. Earlier this year, Campanile was taken back by Wells Fargo, the lender for the property, by means of a deed in lieu of foreclosure from Transwestern Investment. Purchasing the offi ce tower will raise Dewberry’s profi le as a true institutional investor and become one more piece to his portfolio of Midtown properties. The contract for sale outbid other renowned Atlanta developers including Cousins Properties and Tishman Speyer.

• Regions Bank eyes Midtown regional HQ: Looking to raise its profi le amongst Atlanta’s many larger banks, Regions Bank is close to leasing about 80,000 SF of offi ce space on four fl oors at Atlantic Center Plaza. The Birmingham, Alabama-based bank is the sixth largest in Atlanta and has its current offi ce in Central Perimeter. The move to Midtown will give the bank an intown presence and allow it to compete head on against it’s bigger rivals. The four fl oors to be occupied will come from Alston & Bird law fi rm, which will likely be consolidating into its offi ces at One Atlantic Center Plaza.

Accelerating success.

Bob Allen Bob Mathews

Neal Baker Craig Mendel

Patrick Braswell Scott O’Halloran

Lee Evans Hugh Paff ord

Russ Jobson Jodi Selvey

Nicole Kamen Fred Sheats

Jeff Kelley Pete Shelton

Brett Kingman Andrew Walker

Michael Lipton Bob Ward

AT A GLANCE | City Hall East

COLLIERS INTERNATIONAL | ATLANTA OFFICE | MIDTOWN LISTINGS

400 TRABERT AVE.

3,644 SF Lease; 10,428 SF Sale

Jeff Kelley / Bob Ward /Pete Shelton

THE PROSCENIUM

9,508 SF SubleaseJeff Kelley / Bob Ward /

Pete Shelton

COLONY SQUARE 400

1,972 SF SubleaseBob Allen

909 W. PEACHTREE

12,000 SF LeaseRuss Jobson / Bob Allen

1570 NORTHSIDE DR.

4,075 SF SubleaseJodi Selvey

PERSHING PARK

PLAZA

1,790-5,220 SF Lease Lee Evans

• Former Sears, Roebuck & Co. mailing facility and most recently Atlanta City Hall East.

• First opened in 1926.• 2-million square foot complex to be redeveloped

into a mixed-use project containing retail space, including boutique shops and anchor-tenant space up to 150,000 SF for a major retailer. Residences and restaurants are also part of the redevelopment project.

• Jamestown Properties is currently negotiating to purchase the property from the City of Atlanta for $27 million.

MARKET REPORT | Q2 2010 | ATLANTA OFFICE | MIDTOWN