NEW SUPPLY, ABSORPTION AND VACANCY RATES

SUBMARKET REPORTATLANTA

www.colliers.com/atlanta

MARKET INDICATORS

Q42010

NEXTQTR

VACANCY

NET ABSORPTION

CONSTRUCTION — —

RENTAL RATE —

Q4 2010 | MIDTOWN

Mid

tow

n

TRENDS & HIGHLIGHTS

(200,000)

0

200,000

400,000

600,000

800,000

4Q09 1Q10 2Q10 3Q10 4Q1010%

12%

14%

16%

18%

20%

22%

24%

Absorption Deliveries Vacancy

Total SF 19,908,163

Vacancy Rate 21.1%

YTD Net Absorption 180,930

YTD Deliveries 752,710

Under Construction 0

Avg. Class A Rate $26.11Source: CoStar Property

UPDATE Recent Transactions in the Market

SALES ACTIVITY

PROPERTY ADDRESS SALE PRICE SIZE SF PRICE / SF BUYER

271 17th Street $75,000,000 548,039 $136.85 CBRE InvestorsCampanile $36,000,000 446,626 $80.60 Dewberry Capital728-736 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

Alston & Bird Law Firm One Atlantic Center 340,000 Class A Renewal & Contraction

Wells Fargo 171 17th Street 180,000 Class A Renewal

Schiff Hardin The Proscenium 34,572 Class A Renewal & Expansion

Robins, Kaplan, Miller & Cir. One Atlantic Center 22,922 Class A Lease

• Midtown continued to show itself as one of the strongest submarkets in Atlanta’s offi ce market in 2010. For the second straight year the submarket fi nished with positive absorption. Since losing tenants in 2008, Midtown has fi lled 381,436 SF of space over the past two years.

• Rental rates are starting to show more of an upward trend. The average quoted rental rate is up $1.61/sf from third quarter. Although some of this increase is due to statistical adjustment, it still suggests a steady, increasing trend is taking place.

• The activity Midtown experienced over the past couple of years is expected to continue going forward. The submarket will attract much of the same attention from companies seeking space in 2011.

Squa

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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 1,079,312 SF 669,575 SF 752,710 SF 774,344 SF 581,833 SF

% LEASED 87% 93% 31.1% 57.8% 86.1%

LARGESTSPACE AVAIL. 57,999 SF 15,740 SF 459,458 SF 291,582 SF 56,047 SF

RENTAL RATEPER SF (Gross) $26.70-$32.70 $33.00-$35.00 $34.00-$36.00 $24.00-$26.00 $23.30-$29.30

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P. 2 | COLLIERS INTERNATIONAL

MARKET REPORT | Q4 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 446,626 SF

79.4% 41.8% 95.4% 79.9% 30.4%

52,965 SF 183,587 SF 21,459 SF 181,189 SF 213,348 SF

$27.00-$29.00 $31.00-$32.00 $28.00-$32.00 $23.00-$30.00 $29.50-$30.50

6 7 8 9 10

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

RECENT DELIVERIES

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 | Q4 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

• Three choice Midtown parcels picked up: Three parcels of land located in premium Midtown locations have been sold to land investors who plan to hold them for future development. It is worth mentioning all three parcels were originally owned by Novare Group prior to the economic downturn. The parcels went back to the lenders and have now been resold. The fi rst parcel was repurchased by NoteSouth, a new investment fi rm with the owner of Novare Group, Jim Borders as an offi cer. The second parcel located at 1163 W. Peachtree was bought by Avanti Properties. The last parcel at 22 14th Street was purchased by John Carlos. No current development plans have been made for any of the land.

• Sale of Atlantic Station means big changes: AIG has sold the 586,000 SF retail development of Atlantic Station to a joint venture between CB Richard Ellis Investors and North American Properties. No price has been given yet. The transfer of ownership will result in changes at the retail complex. Among them will be stores and restaurants which appeal to the younger Midtown crowd, the creation of shopping districts and improvements to the parking deck underneath the development.

• Midtown offi ce tenants playing musical chairs: As is the case with other Atlanta submarkets in 2010, Midtown saw companies within the submarket leasing space and moving to more aff ordable, and sometimes higher-quality locations. A perfect example of this can be seen at 1075 Peachtree where Atlanta Capital Mgmt., Seyfarth Shaw and Boston Consulting have leased space, moving from other Midtown locations.

Accelerating success.

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

1,769 SF SubleaseJeff Kelley / Bob Ward /

Pete Shelton

715 PEACHTREE

342,860 SF LeaseScott O’Halloran /

Lee Evans

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 investing $180 million into the redevelopment, including $15.5 million to the City of Atlanta for the property.

Bob Allen Craig Mendel

Lee Evans Scott O’Halloran

Deming Fish Hugh Paff ord

Huston Green Jodi Selvey

Russ Jobson Fred Sheats

Nicole Kamen Pete Shelton

Jeff Kelley Hayes Swann

Brett Kingman Andrew Walker

Michael Lipton Bob Ward

Bob Mathews

MARKET REPORT | Q4 2010 | ATLANTA OFFICE | MIDTOWN