3Q 2010 | Atlanta Central Perimeter Office | Market Report

Q3 2010 | CENTRAL PERIMETER

ATLANTA

SUBMARKET REPORT

TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES

Total SF

200,000

22%

Vacancy Rate

20.9%

100,000

20%

YTD Net Absorption

72,860

0

18%

(100,000)

3Q09

4Q09

1Q10

2Q10

3Q10

16%

(200,000)

14%

(300,000)

12%

(400,000)

10% Absorption

Deliveries

28,303,498

YTD Deliveries

0

Under Construction

0

Avg. Class A Rate

$22.22

Source: CoStar Property

Vacancy

MARKET INDICATORS Q3 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

5424 Glenridge Dr.

$4,250,000

15,000

$283.33

Shoffland Holdings LLC

Central Perimeter

LEASING ACTIVITY

www.colliers.com/atlanta

TENANT

PROPERTY ADDRESS

SIZE SF

TYPE

Global Payments

10 Glenlake North

168,317

Class A Renewal

Munich American Reass.

56 Perimeter Center

63,500

Class A Renewal

McCalla Raymer

Concourse VI

28,718

Class A Lease

Enterprise Leasing

Palisades Office Park

27,769

Class A Renewal

•

Class B & C move-outs were the reason for the negative absorption for Central Perimeter in the third quarter. Despite this, the submarket still shows a net occupancy increase for the year thanks mostly to positive Class A absorption .

•

The submarket’s largest move-in of third quarter was AutoTrader moving into 102,070 SF at 3003 Perimeter Summit. The auto buying/selling information company relocated from Class B property.

•

Move-outs in fourth quarter are expected to erase Central Perimeter’s positive absorption in 2010.

A number of relocations will hit the submarket in the coming months, wiping away occupancy gains from the beginning of the year. Office leasing remains active, however, and will limit the total loss.

MARKET REPORT | Q3 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

85.8%

96.4%

81%

63.6%

91.9%

50,000 SF

76,491 SF

52,880 SF

192,518 SF

8,274 SF

$23.50-$24.50

$24.50

$22.09-$24.09

$22.50-$26.50

$25.00-$26.75

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

437,826 SF

381,432 SF

86%

74.9%

74%

83.5%

10.6%

18,340 SF

131,509 SF

47,204 SF

24,199 SF

363,630 SF

$23.50-$24.50

$25.00-$25.50

$22.00-$23.00

$21.50-$23.50

$20.00-$21.50

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 | Q3 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 | Q3 2010 | ATLANTA OFFICE | CENTRAL PERIMETER

IN THE NEWS

480 offices in 61 countries on 6 continents

• Revolving

deals for Central Perimeter: Central Perimeter has seen its share of large deals this year, some of which have resulted and will result in net occupancy gains for the submarket. Most of the office leasing occurring this year, however, is from existing companies in the area. These deals may or may not produce positive absorption depending on whether the company is contracting or expanding its space usage. The bright spot is that companies which locate to Central Perimeter tend to stay in the submarket because of area amenities and transportation access. The negative aspect is that these intra-market moves do little to the vacant space available in the submarket.

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.

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

• Access

• Wood

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.

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 | 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 10,000-15,000 SF Sale Hugh Pafford / Jodi Selvey

www.colliers.com/atlanta

•

$2 billion in annual revenue

• Over 2 billion square feet under

management • Over 15,000 professionals

UNITED STATES: 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

Craig Mendel

Neal Baker

Scott O’Halloran

Lee Evans

Hugh Pafford

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

1455 LINCOLN PKWY. 4,392 SF Sublease Brett Kingman / Russ Jobson 5883 GLENRIDGE DR. 16,104 SF Sublease Neal Baker

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.

5620 GLENRIDGE 84,500 SF Lease/Sale Hugh Pafford

Accelerating success.