NEW SUPPLY, ABSORPTION AND VACANCY RATES

SUBMARKET REPORTATLANTA

www.colliers.com/atlanta

MARKET INDICATORS

Q22010

NEXTQTR

VACANCY

NET ABSORPTION —

CONSTRUCTION — —

RENTAL RATE

Q2 2010 | NORTH FULTON

Nort

h F

ulton

TRENDS & HIGHLIGHTS

(300,000)

(200,000)

(100,000)

0

100,000

200,000

2Q09 3Q09 4Q09 1Q10 2Q10

10%

12%

14%

16%

18%

20%

22%

Absorption Deliveries Vacancy

Total SF 24,136,432

Vacancy Rate 20.2%

YTD Net Absorption (127,856)

YTD Deliveries 0

Under Construction 0

Avg. Class A Rate $19.67Source: CoStar Property

UPDATE Recent Transactions in the Market

SALES ACTIVITY

PROPERTY ADDRESS SALE PRICE SIZE SF PRICE / SF BUYER

1720,1725 Windward Conc. $17,600,000 201,544 $87.33 Allegiance Realty Corp.1355 Windward Concourse $11,300,000 102,569 $110.17 TA Realty Associates11138 State Bridge Rd. $2,020,000 32,212 $62.71 SJ Collins Enterprises3935 Lakefi eld Ct. $1,620,000 20,400 $79.41 Mayzo Properties LLC

LEASING ACTIVITY

TENANT PROPERTY ADDRESS SIZE SF TYPE

Saia 11465 Johns Creek Pky. 44,932 Class A Renewal & Expansion

Angelica Corporation Lake View I-1105 Lakewood 20,309 Class A Renewal

Fiberlight Royal Centre Four 15,493 Class A Lease

Peachtree Financial Solutions 6465 Johns Creek Pkwy. 14,326 Class A Lease

• For the fi fth consecutive quarter, offi ce absorption in North Fulton was negative. Occupancy dropped by another 65,000 SF in the second quarter. For the year, tenants have given back over 127,000 SF of offi ce space in the submarket.

• Compared to Atlanta’s other offi ce markets, North Fulton is one of the weakest of the year so far. The submarket has the second highest amount of negative absorption and the third highest vacancy rate increase from this time last year.

• Leasing activity in North Fulton has been anemic over the past year. There are not a lot of deals currently taking place in the submarket. The number of prospects seeking space here is also weak.

• North Fulton has the highest amount of sublease space available in Atlanta’s suburban offi ce markets.

UNITED STATES:

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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

• Children’s expands up GA 400: The North Fulton/Forsyth County submarket will be the location for a new 28-acre medical campus. Children’s Healthcare of America plans to open a $6 million outpatient medical facility in the northern section of the submarket. The project is currently seeking regulatory approval and Children’s hopes to open the facility in May 2011. A second phase is being planned two to three years down the road which could include an ambulatory surgery center, medical offi ce buildings and diagnostic facilities. The medical campus is being located in Forsyth County due to the population growth experienced over the past decade in the northern suburbs. Regionally, the facility will serve the counties of Forsyth, Cherokee, Gwinnett, Lumpkin, Dawson and Hall.

• Coca-Cola moving from Northridge location: As reported this spring by the Atlanta Business Chronicle, Coca-Cola was considering moving from its existing offi ce space at Northridge Offi ce Park in Central Perimeter to Sanctuary Park in North Fulton. It is now known the company has signed a lease for 130,000 SF of sublease space at Oak View III in Sanctuary Park and plans to relocate by the end of the year. This will likely be the largest deal signed in North Fulton in 2010.

• Kids II may move Alpharetta HQ to Buckhead: Kids II, which is currently located in 555 North Point Center, may relocate to 100,000 SF of offi ce space at Terminus 200 in Buckhead. The company is considering the lease, and also whether or not to renew its current space.

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

COLLIERS INTERNATIONAL | ATLANTA OFFICE | NORTH FULTON LISTINGS

ROYAL CENTRE

1,723-51,634 SF LeaseLee Evans / Scott O’Halloran

100 WINDWARD FOREST

4,289-44,105 SF LeaseLee Evans /

Patrick Braswell

BROOKSIDE TWO

7,728 SF SubleaseBrett Kingman / Russ Jobson

JOHNS CREEK

MEDICAL PLAZA

90,000 SF LeaseLee Evans / Scott O’Halloran

BROOKSIDE 800

36,556 SF SubleaseCraig Mendel / Michael Lipton

LAKE @ NORTHPOINT

1,501-15,623 SF LeaseLee Evans / Scott O’Halloran

AT A GLANCE | Prospect Park

• $745 million luxury, mixed-use development on 85 acres in Alpharetta.

• Project planned to include 156-room boutique hotel with 82 residences, 750,000 SF of retail space, two mid-rise offi ce buildings totaling 250,000 SF and other amenities including a 75,000 SF multiplex cinema.

• Project currently in bankruptcy protection with no defi nitive timetable for completion.

MARKET REPORT | Q2 2010 | ATLANTA OFFICE | NORTH FULTON