The CoStar Office Report - Ackerman & Co. in Atlanta, GA

The CoStar
Office Report

THIRD QUARTER 2013

The North Fulton Office Market

Third Quarter 2013

Atlanta Office Market

COPYRIGHT

The CoStar Office Report

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Third Quarter 2013

Atlanta Office Market

TABLE OF CONTENTS

Table of Contents

Methodology
Terms & Definitions
CoStar Markets & Submarkets

The North Fulton Office Market

Market Highlights
The North Fulton Office Market Overview
Historical Analysis of Market Highlights by Class

Vacancy Analysis
Historical Vacancy Analysis by Class

Absorption Analysis
Historical Analysis of Absorption by Class
Buildings Contributing to Net Absorption by Class

Inventory Analysis
Historical Analysis of Inventory by Class
Building-by-Building Reference List by Class

Tenant Analysis
Tenant Analysis by Size, Lease Expiration, Industry and SF/Employee

Figures at a Glance
Historical Figures at a Glance by Class and Market
Historical Figures at a Glance by Class and Submarket (If Applicable)

The Atlanta Office Market

Market Highlights
Metro Market Overview
Historical Analysis of Market Highlights by Class

Vacancy Analysis
Historical Vacancy Analysis by Class

Absorption Analysis
Historical Analysis of Absorption by Class
Buildings Contributing to Net Absorption by Class

Inventory Analysis
Historical Analysis of Inventory by Class

New Development Activity
Year-to-Date Delivered Projects
Under Construction Projects
Proposed Projects

Tenant Analysis
Employment Numbers
Tenant Analysis by Size, Lease Expiration, Industry and SF/Employee

Sales Activity Analysis
Analysis of Volume, Average Price/SF and Average Cap Rate
Select Building Sales
Select Same Building Sales

Figures at a Glance
Figures at a Glance by Class and Market
Figures at a Glance by Class and Submarket
Historical Figures at a Glance by Class

© 2013 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2013

Atlanta Office Market

METHODOLOGY

Methodology

The CoStar Office Report calculates office statistics using CoStar Group's base of existing,
under construction, and under renovation office buildings in each given metropolitan area.
Included are office, office condominium, office loft, office medical, and government office
buildings, in building sizes of 15,000 square feet and larger, and not including owner-
occupied buildings. CoStar Group's national database includes approximately 80.7 billion
square feet of coverage in 3.5 million properties. All rental rates reported in the CoStar
Office Report have been converted to a Full Service equivalent rental rate.

© 2013 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2013

Atlanta Office Market

TERMS & DEFINITIONS

Terms & Definitions

Availability Rate: The ratio of available space to management and tenants. They are less appealing to
total rentable space, calculated by dividing the total tenants than Class A properties, and may be deficient
available square feet by the total rentable square feet. in a number of respects including floor plans,
condition and facilities. They lack prestige and must
Available Space: The total amount of space that is depend chiefly on a lower price to attract tenants and
currently being marketed as available for lease in a investors.
given time period. It includes any space that is
available, regardless of whether the space is vacant, Class C: A classification used to describe buildings
occupied, available for sublease, or available at a that generally qualify as no-frills, older buildings that
future date. offer basic space and command lower rents or sale
prices compared to other buildings in the same market.
Build-to-Suit: A term describing property that was Such buildings typically have below-average
developed specifically for a certain tenant to occupy, maintenance and management, and could have mixed
with structural features, systems, or improvement or low tenant prestige, inferior elevators, and/or
work designed for the needs of that tenant. A build- mechanical/electrical systems. These buildings lack
to-suit can be either leased or owned by the tenant, prestige and must depend chiefly on a lower price to
with a leased build-to-suit usually having a long term attract tenants and investors.
lease on the space.
Construction Starts: Buildings that began
Buyer: The individual, group, company, or entity that construction during a specific period of time. (See
has purchased a commercial real estate asset. definition of Deliveries.)

Cap Rate: Short for capitalization rate. The Cap Contiguous Space: Space within a building that is,
Rate is a calculation that reflects the relationship or is able to be joined together into a single space.
between one year's net operating income and the
current market value of a particular property. The cap Deliveries: Buildings that complete construction
rate is calculated by dividing the annual net operating during a specified period of time. In order for space to
income by the sales price (or asking sales price). be considered delivered, a certificate of occupancy
must have been issued for the property.
CBD: Abbreviation for Central Business District. (See
definition of Central Business District.) Delivery Date: The date a building completes
construction and receives a certificate of occupancy.
Central Business District: The designations of
Central Business District (CBD) and Suburban refer to Developer: The company, entity or individual that
a particular geographic area within a metropolitan transforms raw land to improved property by use of
statistical area (MSA) describing the level of real estate labor, capital and entrepreneurial efforts.
development found there. The CBD is characterized
by a high density, well organized core within the Direct Space: Space that is being offered for lease
largest city of a given MSA. directly from the landlord or owner of a building, as
opposed to space being offered in a building by
Class A: A classification used to describe buildings another tenant (or broker of a tenant) trying to sublet
that generally qualify as extremely desirable a space that has already been leased.
investment-grade properties and command the highest
rents or sale prices compared to other buildings in the Existing Inventory: The square footage of buildings
same market. Such buildings are well located and that have received a certificate of occupancy and are
provide efficient tenant layouts as well as high quality, able to be occupied by tenants. It does not include
and in some buildings, one-of-a-kind floor plans. They space in buildings that are either planned, under
can be an architectural or historical landmark designed construction or under renovation.
by prominent architects. These buildings contain a
modern mechanical system, and have above-average Flex Building: A type of building designed to be
maintenance and management as well as the best versatile, which may be used in combination with
quality materials and workmanship in their trim and office (corporate headquarters), research and
interior fittings. They are generally the most attractive development, quasi-retail sales, and including but not
and eagerly sought by investors willing to pay a limited to industrial, warehouse, and distribution uses.
premium for quality. A typical flex building will be one or two stories with
at least half of the rentable area being used as office
Class B: A classification used to describe buildings space, have ceiling heights of 18 feet or less, and have
that generally qualify as a more speculative investment, some type of drive in door, even though the door may
and as such, command lower rents or sale prices be glassed in or sealed off.
compared to Class A properties. Such buildings offer
utilitarian space without special attractions, and have Full Service Rental Rate: Rental rates that include
ordinary design, if new or fairly new; good to excellent all operating expenses such as utilities, electricity,
design if an older non-landmark building. These janitorial services, taxes and insurance.
buildings typically have average to good maintenance,

© 2013 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2013

Atlanta Office Market

TERMS & DEFINITIONS

Terms & Definitions

Gross Absorption: The total change in occupied by the tenant and may include janitorial costs,
space over a given period of time, counting space that electricity, utilities, taxes, insurance and other related
is occupied but not space that is vacated by tenants. costs.
Gross absorption differs from leasing activity, which is
the sum of all space leased over a certain period of New Space: Sometimes called first generation space,
time. refers to space that has never been occupied and/or
leased by a tenant.
Growth in Inventory: The change in size of the
existing square footage in a given area over a given Occupied Space: Space that is physically occupied
period of time, generally due to the construction of by a tenant. It does not include leased space that is not
new buildings. currently occupied by a tenant.

Industrial Building: A type of building adapted for Office Building: A type of commercial building used
such uses as the assemblage, processing, and/or exclusively or primarily for office use (business), as
manufacturing of products from raw materials or opposed to manufacturing, warehousing, or other uses.
fabricated parts. Additional uses include warehousing, Office buildings may sometimes have other associated
distribution, and maintenance facilities. The primary uses within part of the building, i.e., retail sales,
purpose of the space is for storing, producing, financial, or restaurant, usually on the ground floor.
assembling, or distributing product.
Owner: The company, entity, or individual that holds
Landlord Rep: (Landlord Representative) In a title on a given building or property.
typical lease transaction between an owner/landlord
and tenant, the broker that represents the interests of Planned/Proposed: The status of a building that
the owner/landlord is referred to as the Landlord Rep. has been announced for future development but not
yet started construction.
Leased Space: All the space that has a financial
lease obligation. It includes all leased space, regardless Pre-leased Space: The amount of space in a
of whether the space is currently occupied by a tenant. building that has been leased prior to its construction
Leased space also includes space being offered for completion date, or certificate of occupancy date.
sublease.
Price Per Square Foot: Calculated by dividing the
Leasing Activity: The volume of square footage that price of a building (either sales price or asking sales
is committed to and signed under a lease obligation for price) by the rentable building area (RBA).
a specific building or market in a given period of time.
It includes direct leases, subleases and renewals of Property Manager: The company and/or person
existing leases. It also includes any pre-leasing activity responsible for the day-to-day operations of a building,
in under construction, planned buildings or under such as cleaning, trash removal, etc. The property
renovation buildings. manager also makes sure that the various systems
within the building, such as the elevators, HVAC, and
Market: Geographic boundaries that serve to electrical systems, are functioning properly.
delineate core areas that are competitive with each
other and constitute a generally accepted primary Quoted Rental Rate: The asking rate per square
competitive set of areas. Markets are building-type foot for a particular building or unit of space by a
specific, and are non-overlapping contiguous broker or property owner. Quoted rental rates may
geographic designations having a cumulative sum that differ from the actual rates paid by tenants following
matches the boundaries of the entire Region (see the negotiation of all terms and conditions in a specific
definition of Region). Markets can be further lease.
subdivided into Submarkets. (See definition of
Submarkets.) RBA: Abbreviation for Rentable Building Area. (See
definition of Rentable Building Area.)
Multi-Tenant: Buildings that house more than one
tenant at a given time. Usually, multi-tenant buildings Region: Core areas containing a large population
were designed and built to accommodate many nucleus, that together with adjacent communities have
different floor plans and designs for different tenant a high degree of economic and social integration.
needs. (See Tenancy) Regions are further divided into market areas, called
Markets. (See definition of Markets.)
Net Absorption: The net change in occupied space
over a given period of time, calculated by summing all Relet Space: Sometimes called second generation or
the positive changes in occupancy (move ins) and direct space, refers to existing space that has previously
subtracting all the negative changes in occupancy been occupied by another tenant.
(move outs).
Rentable Building Area: The total square footage
Net Rental Rate: A rental rate that excludes certain of a building that can be occupied by, or assigned to a
expenses that a tenant could incur in occupying office tenant for the purpose of determining a tenant's rental
space. Such expenses are expected to be paid directly obligation. Generally RBA includes a percentage of

© 2013 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2013

Atlanta Office Market

TERMS & DEFINITIONS

Terms & Definitions

common areas including all hallways, main lobbies, inventory. Under construction space generally is not
bathrooms, and telephone closets. included in vacancy calculations.

Rental Rates: The annual costs of occupancy for a Vacant Space: Space that is not currently occupied
particular space quoted on a per square foot basis. by a tenant, regardless of any lease obligation that may
be on the space. Vacant space could be space that is
Sales Price: The total dollar amount paid for a either available or not available. For example,
particular property at a particular point in time. sublease space that is currently being paid for by a
tenant but not occupied by that tenant, would be
Sales Volume: The sum of sales prices for a given considered vacant space. Likewise, space that has been
group of buildings in a given time period. leased but not yet occupied because of finish work
being done, would also be considered vacant space.
Seller: The individual, group, company, or entity that
sells a particular commercial real estate asset. Weighted Average Rental Rate: Rental rates that
are calculated by factoring in, or weighting, the square
SF: Abbreviation for Square Feet. footage associated with each particular rental rate.
This has the effect of causing rental rates on larger
Single-Tenant: Buildings that are occupied, or spaces to affect the average more than that of smaller
intended to be occupied by a single tenant. (See spaces. The weighted average rental rate is calculated
definition of Tenancy.) by taking the ratio of the square footage associated
with each rental rate to the square footage associated
Sublease Space: Space that has been leased by a with all rental rates, multiplying the rental rate by that
tenant and is being offered for lease back to the market ratio, and then adding together all the resulting
by the tenant with the lease obligation. Sublease space numbers.
is sometimes referred to as sublet space.
Year Built: The year in which a building completed
Submarkets: Specific geographic boundaries that construction and was issued a certificate of occupancy.
serve to delineate a core group of buildings that are
competitive with each other and constitute a generally YTD: Abbreviation for Year-to-Date. Describes
accepted primary competitive set, or peer group. statistics that are cumulative from the beginning of a
Submarkets are building type specific (office, calendar year through whatever time period is being
industrial, retail, etc.), with distinct boundaries studied.
dependent on different factors relevant to each
building type. Submarkets are non-overlapping,
contiguous geographic designations having a
cumulative sum that matches the boundaries of the
Market they are located within. (See definition of
Market.)

Suburban: The Suburban and Central Business
District (CBD) designations refer to a particular
geographic area within a metropolitan statistical area
(MSA). Suburban is defined as including all office
inventory not located in the CBD (see definition of
CBD).

Tenancy: A term used to indicate whether or not a
building is occupied by multiple tenants (see Multi-
tenant) or a single tenant (see Single-tenant).

Tenant Rep: Tenant Rep stands for Tenant
Representative. In a typical lease transaction between
an owner/landlord and tenant, the broker that
represents the interests of the tenant is referred to as a
Tenant Rep.

Under Construction: The status of a building that
is in the process of being developed, assembled, built
or constructed. A building is considered to be under
construction after it has begun construction and until
it receives a certificate of occupancy.

Vacancy Rate: A measurement expressed as a
percentage of the total amount of physically vacant
space divided by the total amount of existing

© 2013 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2013

Atlanta Office Market

MARKETS & SUBMARKETS

CoStar Markets and Submarkets

In analyzing metropolitan areas in the U.S., CoStar has developed geographic designations to help group
properties together, called Regions, Markets and Submarkets. Regions are the equivalent of metropolitan areas, or
areas containing a large population nucleus, that together with adjacent communities have a high degree of
economic and social integration. Regions are then divided into Markets, which are core areas known to be
competitive with each other in terms of attracting and keeping tenants. Markets are then further subdivided into
smaller units called Submarkets, which serve to delineate a core group of buildings that are competitive with each
other and constitute a generally accepted competitive set, or peer group.

Markets Submarkets
Buckhead
Central Perimeter Lower Buckhead
Downtown Atlanta Upper Buckhead
Midtown Atlanta Central Perimeter
North Fulton
Northeast Atlanta Downtown Atlanta

Northlake Midtown/Pershing Point
Northside Dr/Georgia Tech
Northwest Atlanta Dawson County
N Fulton/Forsyth County
South Atlanta Barrow County
Duluth/Suwanee/Buford
West Atlanta Gainesville/Hall County
Lawrenceville/Lilburn
Norcross/Ptree Corners
Walton County
Chamblee/Dville/N D Hills
Decatur
I-20 East/Conyers
Newton County
Northlake/Lavista
Stone Mountain
Bartow County
Cherokee County
Cumberland/Galleria
East Cobb
Kennesaw/Town Center
Pickens County
Butts County
Fayette/Coweta County
Jasper County
Lamar County
Meriwether County
Monroe County
North Clayton/Airport
Pike County
South Clayton/Henry Cnty
Spalding County
Douglasville/Lithia Sprng
Haralson County
Heard County
Villa Rica/West Outlying
W Carroll County
West Atlanta

© 2013 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

MarketHighlights

THIRD-QUARTER 2013

The North Fulton Office Market

Third Quarter 2013

Atlanta Office Market

NORTH FULTON

OVERVIEW

North Fulton Highlights

The North Fulton office market ended the third quarter
2013 with a vacancy rate of 18.2%. This vacancy rate
represented a 0.9 percentage point decrease over the previous
quarter, when the rate was 19.1%. This decrease in vacancy
rate occurred in a quarter where North Fulton saw positive
230,395 square feet in net absorption and no new deliveries.
Quoted rental rates ended third quarter 2013 at $18.39 per
square foot, up from $18.37 per square foot in the second
quarter 2013. At the end of third quarter 2013, there was
nothing under construction in the North Fulton office market.

Class 'A' projects in North Fulton reported a third quarter North Fulton Class 'C' projects recorded (3,360) square
2013 vacancy rate of 18.5%, down from the 20.1% reported at feet of negative net absorption in third quarter 2013. The class
the end of second quarter 2013. Net absorption within the class 'C' vacancy rate was 6.1% at the end of third quarter 2013, and
'A' sector totaled positive 221,346 square feet for the quarter, average quoted rental rates were $14.28 per square foot.
and no new deliveries were reported. Quoted rental rates for
available space within the class 'A' sector averaged $20.24 at Vacancy
the end of the quarter, down from $20.36 in the second quarter The overall vacancy rate in the North Fulton office market
2013. There was nothing under construction at the end of third
quarter 2013. ended third quarter 2013 at 18.2%, down from the previous
quarter, when it was 19.1%. This 0.9 percentage point decrease
Class 'B' projects reported positive net absorption of from the prior quarter compares to a 0.2 percentage point
12,409 square feet and no deliveries in the third quarter of
2013. As a result, the North Fulton class 'B' vacancy rate
decreased to 18.5% (from 18.6% at the end of the second
quarter 2013). North Fulton class 'B' quoted rental rates
averaged $15.37, and there was nothing under construction at
the end of third quarter 2013.

Vacancy Rates by Class 2010-2013

Class A Class B Class C Total M arket

2 5%

20%

15%

10%

5%

0% 2010 2q 2010 3q 2010 4q 2 0 11 1q 2 0 11 2 q 2 0 11 3 q 2 0 11 4 q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2013 2q 2013 3q
2010 1q

Source: CoSt ar Propert y®

© 2013 CoStar Realty Information The CoStar Office Report www.costar.com

Third Quarter 2013

Atlanta Office Market

NORTH FULTON

OVERVIEW

increase since the third quarter of 2012, when the vacancy rate Vacancy Comparison
was 18.0%.
Nort h Fulton A t lant a
At the end of the third quarter 2013 there was 4,398,080
square feet of vacant space in the North Fulton office market. 21.0%
In the second quarter of 2013, 4,628,475 square feet lay vacant, 20.5%
and in the third quarter of 2012, 4,345,764 square feet was
vacant. 2 0 .0 %
19.5%
The 52,316 square foot increase in vacant square footage 19.0%
from third quarter 2012 to third quarter 2013 represents a 1%
increase in vacant space, while the 230,395 square foot decrease 18.5%
in vacant space from second quarter 2013 to third quarter 2013 18.0%
represents a 5% decrease in vacant square footage. 17.5%
17.0%
Tenants moving into large blocks of space in 2013 include:
Allnex USA, Inc moving into 50,933 square feet at 9005 16.5%
Westside Pky, Arseal Inc moving into 17,357 square feet at
Royal Centre Three, and Anodyne Health Partners, Inc. moving 16.0%
into 16,109 square feet at Northwinds Seven.
2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013
The North Fulton class 'A' sector reported a 18.5% 1q 2q 3q 4q 1q 2q 3q 4q 1q 2q 3q
vacancy rate at the end of third quarter 2013. There was
2,644,982 square feet of vacant space at the end of the quarter S ource:CoS t ar Propert y®
in a market with total inventory of 14,284,456 square feet.
From the second quarter 2013 to the third quarter 2013, the Between third quarter 2012 and third quarter 2013, total
North Fulton class 'A' vacancy rate decreased 1.6 percentage class 'A' vacancy in North Fulton decreased 6,639 square feet,
points, while total vacant space in the market decreased 8% or 0.3%, while the vacancy rate decreased 0.1 percentage
(vacant space went down 221,346 square feet during that time). points.

The class 'B' sector of North Fulton, with a third quarter
2013 vacancy rate of 18.5%, saw vacancies fall in the quarter.
The vacancy rate decreased by 0.1 percentage points from the
second quarter of 2013, when the vacancy rate was 18.6%.
Total vacant space decreased by 12,409 square feet during that
time, which corresponded to a 1% decrease in the total amount
of vacant space.

Absorption & Deliveries In the third quarter 2013 North Fulton class 'B' vacancy
rates were up 0.4 percentage points from a year earlier, when
Net Absorpt ion Deliveries the vacancy rate was 18.1%.
300
North Fulton ended third quarter 2013 with a class 'C'
200 vacancy rate of 6.1%. The class 'C' vacancy rate was 5.6% at
the end of second quarter 2013.
100
A year earlier, in third quarter 2012, North Fulton had a
0 class 'C' vacancy rate of 3.0%, with 20,757 square feet sitting
vacant at the time.
(100)
Absorption & Leasing Activity
(200) In the third quarter of 2013, the North Fulton office

(300) market had positive net absorption of 230,395 square feet. This
compares to positive net absorption of 19,839 square feet in the
(400)

2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013
1q 2q 3q 4q 1q 2q 3q 4q 1q 2q 3q

Sour ce: CoSt ar Proper t y®

© 2013 CoStar Realty Information The CoStar Office Report www.costar.com

Third Quarter 2013

Atlanta Office Market

NORTH FULTON

OVERVIEW

Gross Absorption third quarter 2012, North Fulton saw class 'A' gross absorption
of 343,752 square feet.
800
700 North Fulton saw 178,479 square feet of class 'A' leasing
600 activity in third quarter 2013, compared to 224,895 square feet
500 in second quarter 2013 and 387,672 square feet in third quarter
of 2012.

400 The class 'B' market in North Fulton saw positive net
absorption of 12,409 square feet in the third quarter 2013.
300 Gross absorption in that same time period was 140,808 square
feet, while leasing activity was 157,851 square feet.
200
In the second quarter 2013, net absorption for North
100 Fulton's class 'B' projects was negative (66,698) square feet,
with gross absorption of 94,594 square feet. Leasing activity
0 came in at 68,176 square feet during that time.
2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013
1q 2q 3q 4q 1q 2q 3q 4q 1q 2q 3q

Sour ce: CoSt ar Proper t y®

previous quarter, and positive 84,741 square feet in the third The class 'C' market in North Fulton reported negative net
quarter of 2012. absorption of (3,360) square feet in the third quarter 2013.
Gross absorption was 1,404 square feet and leasing activity was
Gross absorption was 509,912 square feet in the North 1,404 square feet in that same time period.
Fulton office market in third quarter 2013. In the previous
quarter, gross absorption was 379,289 square feet, and in the CoStar defines net absorption as the net change in
same quarter a year ago, gross absorption was 522,451 square occupied space over a given period of time. Gross absorption,
feet. like net absorption, measures changes in occupancy, but only
counts the positive changes (the move-ins), not the negative
Leasing activity was 337,734 square feet in North Fulton changes (the move-outs). Both net and gross absorption are
in the third quarter of 2013. Leasing activity was 294,071 dependent on the move date of a transaction to determine
square feet in the second quarter of 2013, and 490,383 square activity. Leasing activity, by contrast, measures transactions
feet in the third quarter of 2012.
Under Construction
The largest lease signings occurring in 2013 include: the
54,086-square-foot new lease signed by Intelligrated LLC at 60
One Deerfield Centre, the 50,933-square-foot new lease signed
by Allnex USA, Inc at 9005 Westside Pky, and the 43,260- 50
square-foot renewal signed by AT&T at 900 North Point Pky.
40
North Fulton recorded positive 221,346 square feet of
class 'A' net absorption in the third quarter of 2013. This 30
compares to positive 92,975 square feet of net absorption in the
second quarter of 2013 and positive 14,090 square feet in the 20
third quarter of 2012.
10
Class 'A' gross absorption for North Fulton was 367,700
square feet in the third quarter of 2013. The previous quarter 0
saw 275,695 square feet of gross absorption. A year earlier, in
2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013

1q 2q 3q 4q 1q 2q 3q 4q 1q 2q 3q

Sour ce: CoSt ar Proper t y®

© 2013 CoStar Realty Information The CoStar Office Report www.costar.com

Third Quarter 2013

Atlanta Office Market

NORTH FULTON

OVERVIEW

based on the sign date, regardless of when (or if) a particular quarter 2012 levels, and up 2.3% from third quarter 2011
space will become occupied. levels. Rates were up 1.7% from their levels three years earlier,
and down 4.7% from five years earlier.
New Construction Activity
The North Fulton office market saw no new speculative The highest quoted rental rate in the North Fulton office
market at the end of third quarter 2013 was $32.52 per square
projects deliver to the market in third quarter 2013. In the third foot. The lowest quoted rental rate in the market at that time
quarter 2012, the market saw no space completed. was $5.81 per square foot.

At the end of third quarter 2013, there was no new Class 'A' quoted rental rates in North Fulton decreased
speculative space under construction in the North Fulton $0.12 from the end of second quarter 2013 to the end of third
market. A year earlier there was 52,000 square feet underway. quarter 2013, ending the third quarter at $20.24 per square
foot. A year earlier, in third quarter 2012, quoted rates were
Some of the notable 2013 deliveries include: North Point $19.75.
Park - Bldg 36, a 5,500 square foot facility that delivered in first
quarter 2013 and is now 100% occupied, and North Point Park The third quarter 2013 decrease in class 'A' quoted rental
- Bldg 29, a 4,752 square foot building that delivered in second rates represents a 0.6% decrease over second quarter 2013
quarter 2013 and is now 100% occupied. levels. Additionally, quoted rates were up 2.5% from third
quarter 2012 to third quarter 2013, and up 2.4% from third
Rental Rates quarter 2011. From third quarter 2010 to third quarter 2013,
Quoted rental rates saw a $0.02 per square foot increase quoted rates increased 3.3% in North Fulton. Quoted rates are
down 3.8% over the previous five years.
from the second quarter 2013 to the third quarter 2013 in
North Fulton. Rates stood at $18.37 per square foot at the end The highest third quarter 2013 quoted rental rate in North
of the second quarter 2013, and ended third quarter 2013 at Fulton's class 'A' office market was $32.52 per square foot,
$18.39 per square foot. A year earlier, at the end of third while the lowest rate was $15.00 per square foot.
quarter 2012, quoted rental rates were $18.03 per square foot.

The third quarter 2013 saw quoted rental rates in North North Fulton's class 'B' sector ended third quarter 2013
Fulton increase 0.1% over second quarter 2013 levels. with quoted rental rates of $15.37 per square foot. These rates
Additionally, third quarter 2013 rates were up 2.0% from third are $0.30 per square foot higher than the second quarter 2013,

Quoted Rental Rates by Class Based on Full Service Equivalent Rates

Class A Class B Class C Total M arket

$2 5.0 0

$2 0 .0 0

$15.00

$10 .0 0

$5.00

$0 .0 0 2010 2q 2010 3q 2010 4q 2 0 11 1q 2 0 11 2 q 2 0 11 3 q 20114q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2013 2q 2013 3q
2010 1q

Source: CoSt ar Propert y®

© 2013 CoStar Realty Information The CoStar Office Report www.costar.com

Third Quarter 2013

Atlanta Office Market

NORTH FULTON

OVERVIEW

when they were $15.07 per square foot, and $0.41 per square Rental Rate Comparison
foot higher than third quarter 2012 rates (when they were
$14.96 per square foot). North Fult on Atlant a

Class 'B' quoted rental rates in North Fulton are higher $20.00
2.7% from third quarter 2012 to third quarter 2013, higher
1.7% over third quarter 2011 levels, lower 0.6% over third $19.50
quarter 2010 levels, and lower 9.5% over third quarter 2008
levels. $19.00

Quoted rental rates in North Fulton's class 'B' sector $18.50
ranged from $26.00 per square foot (highest in the market) to
$5.81 per square foot (lowest in the market) in third quarter $18.00
2013.
$17.50
Inventory
The North Fulton office market's Class 'A' sector consisted $17.00

of 101 projects with 14,284,456 square feet of office space at $16.50
the end of third quarter 2013. The Class 'B' sector in North
Fulton included 214 buildings totaling 9,243,380 square feet at 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013
the end of third quarter 2013, and the North Fulton Class 'C' 1q 2q 3q 4q 1q 2q 3q 4q 1q 2q 3q
market consisted of 26 projects with 690,569 square feet of
space. Sour ce: CoSt ar Proper t y®

Additionally, there were 63 owner-occupied office
buildings within the North Fulton market containing 4,067,343
square feet of space. Including both speculative and owner-
occupied facilities, the North Fulton office market had a total
size of 35,773,275 square feet (in 1,816 projects) at the end of
third quarter 2013.

© 2013 CoStar Realty Information The CoStar Office Report www.costar.com

Third Quarter 2013

Atlanta Office Market

N O R T H F U L T O N - C L A S S A,B&C

MARKET HIGHLIGHTS

Deliveries, Absorption & Vacancy

Delivered SF Absorption SF Vacancy

0.30 20.00%

0.20 19.50%
0.10 19.00%
0.00 18.50%
(0.10) 18.00%
(0.20) 17.50%
(0.30)

(0.40) 17.00%

2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2013 2q 2013 3q

Source: CoStar Property•

Comparisons To Prior Time Periods Quoted Rental Rates

Current Time Period $18.50
Quarter $18.40
Category 4,398,080 of Comparison Change $18.30
Vacant SF -4.98% $18.20
Under Construction 0 vs Prev Qtr 4,628,475 1.20% $18.10
SF 0 $18.00
Quoted Rates $18.39 vs 12 Mths Ago 4,345,764 (52,000) $17.90
0.12% $17.80
Absorption SF 230,395 vs Prev Qtr 0 1.99% $17.70
$17.60
Delivered SF 0 vs 12 Mths Ago 52,000 210,556 $17.50
145,654
vs Prev Qtr $18.37 2010
0 3q
vs 12 Mths Ago $18.03 0

vs Prev Qtr 19,839

vs This Qtr Last Yr 84,741

vs Prev Qtr 0 2011 2011 2012 2012 2013 2013
1q 3q 1q 3q 1q 3q
vs This Qtr Last Yr 0

Source: CoStar Property• Source: CoStar Property•

Historical Analysis

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted

Period # Bldgs Total RBA Vacant SF Vacant % Absorption # Bld Total RBA # Bld Total RBA Rates

2013 3q 341 24,218,405 4,398,080 18.2% 230,395 00 00 $18.39
2013 2q 19,839 00 00 $18.37
2013 1q 341 24,218,405 4,628,475 19.1% 27,504 00 $17.89
2012 4q 00 $17.98
2012 3q 341 24,218,405 4,648,314 19.2% (278,054) 00 1 52,000 $18.03
2012 2q 84,741 1 52,000 1 52,000 $17.87
2012 1q 341 24,218,405 4,675,818 19.3% (47,411) 1 52,000 $17.85
2011 4q 1 52,000 $18.20
2011 3q 340 24,166,405 4,345,764 18.0% 180,704 00 00 $17.98
2011 2q (6,460) 00 $17.82
2011 1q 340 24,166,405 4,430,505 18.3% 00 00 $17.90
2010 4q (244,449) 00 00 $18.01
2010 3q 340 24,166,405 4,383,094 18.1% 71,018 00 $18.09
2010 2q 00 $18.26
2010 1q 340 24,166,405 4,563,798 18.9% 175,162 00 00 $18.11
126,118 00
340 24,166,405 4,557,338 18.9% (24,110)
(73,130)
340 24,166,405 4,312,889 17.8% (98,296) 00
00
340 24,166,405 4,383,907 18.1%

340 24,166,405 4,559,069 18.9% 00

340 24,166,405 4,685,187 19.4% 00
00
340 24,166,405 4,661,077 19.3%

340 24,166,405 4,587,947 19.0% 00

Source: CoStar Property•

© 2013 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2013

Atlanta Office Market

NORTH FULTON - CLASS A

MARKET HIGHLIGHTS

Deliveries, Absorption & Vacancy

Delivered SF Absorption SF Vacancy

0.30 25.00%

0.20 20.00%
0.10 15.00%
0.00

(0.10) 10.00%
(0.20) 5.00%
(0.30)

(0.40) 0.00%

2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013
3q 4q 1q 2q 3q 4q 1q 2q 3q 4q 1q 2q 3q

Source: CoStar Property•

Comparisons To Prior Time Periods Quoted Rental Rates

Current Time Period $20.60
Quarter $20.40
Category 2,644,982 of Comparison Change $20.20
Vacant SF -7.72% $20.00
Under Construction 0 vs Prev Qtr 2,866,328 -0.25% $19.80
SF 0 $19.60
Quoted Rates $20.24 vs 12 Mths Ago 2,651,621 (52,000) $19.40
-0.62% $19.20
Absorption SF 221,346 vs Prev Qtr 0 2.48% $19.00
$18.80
Delivered SF 0 vs 12 Mths Ago 52,000 128,371
207,256 2010
vs Prev Qtr $20.36 3q
0
vs 12 Mths Ago $19.75 0

vs Prev Qtr 92,975

vs This Qtr Last Yr 14,090

vs Prev Qtr 0 2011 2011 2012 2012 2013 2013
1q 3q 1q 3q 1q 3q
vs This Qtr Last Yr 0

Source: CoStar Property• Source: CoStar Property•

Historical Analysis

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted

Period # Bldgs Total RBA Vacant SF Vacant % Absorption # Bld Total RBA # Bld Total RBA Rates

2013 3q 101 14,284,456 2,644,982 18.5% 221,346 00 00 $20.24
2013 2q 92,975 00 00 $20.36
2013 1q 101 14,284,456 2,866,328 20.1% (14,975) 00 $19.86
2012 4q 00 $19.72
2012 3q 101 14,284,456 2,959,303 20.7% (240,707) 00 1 52,000 $19.75
2012 2q 14,090 1 52,000 1 52,000 $19.68
2012 1q 101 14,284,456 2,944,328 20.6% (16,872) 1 52,000 $19.74
2011 4q 22,869 1 52,000 $19.87
2011 3q 100 14,232,456 2,651,621 18.6% 14,021 00 00 $19.77
2011 2q 00 $19.43
2011 1q 100 14,232,456 2,665,711 18.7% (309,941) 00 00 $19.55
2010 4q 92,978 00 00 $19.41
2010 3q 100 14,232,456 2,648,839 18.6% 00 $19.59
2010 2q 102,221 00 $19.66
2010 1q 100 14,232,456 2,671,708 18.8% 71,341 00 00 $19.67
(52,481) 00
100 14,232,456 2,685,729 18.9% (61,882)
(48,790)
100 14,232,456 2,375,788 16.7% 00
00
100 14,232,456 2,468,766 17.3%

100 14,232,456 2,570,987 18.1% 00

100 14,232,456 2,642,328 18.6% 00
00
100 14,232,456 2,589,847 18.2%

100 14,232,456 2,527,965 17.8% 00

Source: CoStar Property•

© 2013 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2013

Atlanta Office Market

NORTH FULTON - CLASS B

MARKET HIGHLIGHTS

Deliveries, Absorption & Vacancy

Delivered SF Absorption SF Vacancy

0.20 25.00%

0.15 20.00%
0.10 15.00%
0.05 10.00%
0.00 5.00%
(0.05)

(0.10) 0.00%

2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013
3q 4q 1q 2q 3q 4q 1q 2q 3q 4q 1q 2q 3q

Source: CoStar Property•

Comparisons To Prior Time Periods Quoted Rental Rates

Current Time Period $15.60
Quarter $15.40
Category 1,711,299 of Comparison Change $15.20
Vacant SF -0.72% $15.00
Under Construction 0 vs Prev Qtr 1,723,708 2.27% $14.80
SF 0 $14.60
Quoted Rates $15.37 vs 12 Mths Ago 1,673,386 0 $14.40
1.98% $14.20
Absorption SF 12,409 vs Prev Qtr 0 2.72% $14.00
79,107
Delivered SF 0 vs 12 Mths Ago 0 (57,042) 2010
0 3q
vs Prev Qtr $15.07 0

vs 12 Mths Ago $14.96

vs Prev Qtr (66,698)

vs This Qtr Last Yr 69,451

vs Prev Qtr 0 2011 2011 2012 2012 2013 2013
1q 3q 1q 3q 1q 3q
vs This Qtr Last Yr 0

Source: CoStar Property• Source: CoStar Property•

Historical Analysis

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted

Period # Bldgs Total RBA Vacant SF Vacant % Absorption # Bld Total RBA # Bld Total RBA Rates

2013 3q 214 9,243,380 1,711,299 18.5% 12,409 00 00 $15.37
2013 2q (66,698) 00 00 $15.07
2013 1q 214 9,243,380 1,723,708 18.6% 54,023 00 $14.83
2012 4q (37,647) 00 $14.83
2012 3q 214 9,243,380 1,657,010 17.9% 69,451 00 00 $14.96
2012 2q (33,439) 00 00 $14.81
2012 1q 214 9,243,380 1,711,033 18.5% 161,135 00 $14.61
2011 4q (21,677) 00 $15.20
2011 3q 214 9,243,380 1,673,386 18.1% 61,070 00 00 $15.12
2011 2q (22,960) 00 $15.20
2011 1q 214 9,243,380 1,742,837 18.9% 77,276 00 00 $15.18
2010 4q 49,186 00 00 $15.48
2010 3q 214 9,243,380 1,709,398 18.5% 38,171 00 $15.47
2010 2q (18,660) 00 $15.81
2010 1q 214 9,243,380 1,870,533 20.2% (46,861) 00 00 $15.69
00
214 9,243,380 1,848,856 20.0%

214 9,243,380 1,909,926 20.7% 00
00
214 9,243,380 1,886,966 20.4%

214 9,243,380 1,964,242 21.3% 00

214 9,243,380 2,013,428 21.8% 00
00
214 9,243,380 2,051,599 22.2%

214 9,243,380 2,032,939 22.0% 00

Source: CoStar Property•

© 2013 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2013

Atlanta Office Market

NORTH FULTON - CLASS C

MARKET HIGHLIGHTS

Deliveries, Absorption & Vacancy

Delivered SF Absorption SF Vacancy

0.01 7.00%
0.01 6.00%
0.00 5.00%
0.00 4.00%
0.00 3.00%
(0.00) 2.00%
(0.00) 1.00%
(0.01) 0.00%
(0.01)
(0.01)
(0.01)
(0.01)

2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013
3q 4q 1q 2q 3q 4q 1q 2q 3q 4q 1q 2q 3q

Source: CoStar Property•

Comparisons To Prior Time Periods Quoted Rental Rates

Current Time Period $18.00
Quarter $16.00
Category 41,799 of Comparison Change $14.00
Vacant SF 8.74% $12.00
Under Construction 0 vs Prev Qtr 38,439 $10.00
SF 101.37%
Quoted Rates $14.28 vs 12 Mths Ago 20,757 0 $8.00
0 $6.00
Absorption SF (3,360) vs Prev Qtr 0 $4.00
-0.33% $2.00
Delivered SF 0 vs 12 Mths Ago 0 10.01% $0.00

vs Prev Qtr $14.32 3,078 2010
(4,560) 3q
vs 12 Mths Ago $12.98
0
vs Prev Qtr (6,438) 0

vs This Qtr Last Yr 1,200

vs Prev Qtr 0 2011 2011 2012 2012 2013 2013
1q 3q 1q 3q 1q 3q
vs This Qtr Last Yr 0

Source: CoStar Property• Source: CoStar Property•

Historical Analysis

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted

Period # Bldgs Total RBA Vacant SF Vacant % Absorption # Bld Total RBA # Bld Total RBA Rates

2013 3q 26 690,569 41,799 6.1% (3,360) 00 00 $14.28
2013 2q (6,438) 00 00 $14.32
2013 1q 26 690,569 38,439 5.6% (11,544) 00 $14.12
2012 4q 00 $12.11
2012 3q 26 690,569 32,001 4.6% 300 00 00 $12.98
2012 2q 1,200 00 00 $12.97
2012 1q 26 690,569 20,457 3.0% 2,900 00 $13.46
2011 4q (3,300) 00 $13.72
2011 3q 26 690,569 20,757 3.0% 1,196 00 00 $14.06
2011 2q 4,422 00 $14.10
2011 1q 26 690,569 21,957 3.2% 1,000 00 00 $14.83
2010 4q (4,335) 00 00 $15.12
2010 3q 26 690,569 24,857 3.6% 5,591 00 $16.38
2010 2q (9,800) 00 $18.21
2010 1q 26 690,569 21,557 3.1% 7,412 00 00 $17.03
(2,645) 00
26 690,569 22,753 3.3%

26 690,569 27,175 3.9% 00
00
26 690,569 28,175 4.1%

26 690,569 23,840 3.5% 00

26 690,569 29,431 4.3% 00
00
26 690,569 19,631 2.8%

26 690,569 27,043 3.9% 00

Source: CoStar Property•

© 2013 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Vacant&Available
Space

THIRD-QUARTER 2013

The North Fulton Office Market

Third Quarter 2013

Atlanta Office Market

N O R T H F U L T O N - C L A S S A,B&C

VACANCY ANALYSIS

Overall Vacancy & Quoted Rates

Vacancy Rate Average Vacancy Quoted Rates
2013 2q 2013 3q
20.00% $18.50
$18.40
19.50% $18.30
$18.20
19.00% $18.10
$18.00
18.50% $17.90
$17.80
18.00% $17.70
$17.60
17.50% $17.50

17.00%

2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q

Source: CoStar Property•

Markets Ranked by Vacancy Vacancy Distribution

Existing Direct w/ Sublet Vacant 3%
Inventory Direct
Market 19,356,475 Rank SF %
Northlake 13,025,204 Sublet
South Atlanta 20,277,540 1 2,694,830 13.9%
Buckhead 29,206,413
Central Perimeter 20,309,975 2 2,082,375 16.0%
Midtown Atlanta 24,218,405
North Fulton 26,421,602 3 3,272,530 16.1%
Downtown Atlanta 32,637,699
Northwest Atlanta 22,295,507 4 5,080,810 17.4%
Northeast Atlanta 3,271,503
West Atlanta 5 3,671,178 18.1%

6 4,398,080 18.2%

7 4,811,139 18.2%

8 6,229,952 19.1%

9 4,990,258 22.4%

10 811,344 24.8% 97%

Source: CoStar Property• Source: CoStar Property•

Historical Analysis

Existing Vacant Space Occupied Space Quoted

Period Inventory Direct % Sublet % Total % SF % Rates

2013 3q 24,218,405 4,282,755 17.7% 115,325 0.5% 4,398,080 18.2% 19,820,325 81.8% $18.39
2013 2q 24,218,405 4,501,047 18.6% 127,428 0.5% 4,628,475 19.1% 19,589,930 80.9% $18.37
2013 1q 24,218,405 4,567,416 18.9% 0.3% 4,648,314 19.2% 19,570,091 80.8% $17.89
2012 4q 24,218,405 4,564,821 18.8% 80,898 0.5% 4,675,818 19.3% 19,542,587 80.7% $17.98
2012 3q 24,166,405 4,185,736 17.3% 110,997 0.7% 4,345,764 18.0% 19,820,641 82.0% $18.03
2012 2q 24,166,405 4,227,272 17.5% 160,028 0.8% 4,430,505 18.3% 19,735,900 81.7% $17.87
2012 1q 24,166,405 4,152,131 17.2% 203,233 1.0% 4,383,094 18.1% 19,783,311 81.9% $17.85
2011 4q 24,166,405 4,327,471 17.9% 230,963 1.0% 4,563,798 18.9% 19,602,607 81.1% $18.20
2011 3q 24,166,405 4,270,037 17.7% 236,327 1.2% 4,557,338 18.9% 19,609,067 81.1% $17.98
2011 2q 24,166,405 3,992,898 16.5% 287,301 1.3% 4,312,889 17.8% 19,853,516 82.2% $17.82
2011 1q 24,166,405 4,008,697 16.6% 319,991 1.6% 4,383,907 18.1% 19,782,498 81.9% $17.90
2010 4q 24,166,405 4,025,375 16.7% 375,210 2.2% 4,559,069 18.9% 19,607,336 81.1% $18.01
2010 3q 24,166,405 4,131,266 17.1% 533,694 2.3% 4,685,187 19.4% 19,481,218 80.6% $18.09
2010 2q 24,166,405 4,095,114 16.9% 553,921 2.3% 4,661,077 19.3% 19,505,328 80.7% $18.26
2010 1q 24,166,405 4,035,177 16.7% 565,963 2.3% 4,587,947 19.0% 19,578,458 81.0% $18.11
552,770

Source: CoStar Property•

© 2013 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2013

Atlanta Office Market

NORTH FULTON - CLASS A

VACANCY ANALYSIS

Overall Vacancy & Quoted Rates

Vacancy Rate Average Vacancy Quoted Rates

25.00% $20.60

$20.40

20.00% $20.20

$20.00

15.00%

$19.80

$19.60

10.00%

$19.40

5.00% $19.20

$19.00

0.00% $18.80

2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2013 2q 2013 3q

Source: CoStar Property•

Markets Ranked by Vacancy Vacancy Distribution

Existing Direct w/ Sublet Vacant 3%
Inventory Direct
Market Rank SF %
West Atlanta 71,500 Sublet
Northlake 3,512,544 1 0 0.0%
Central Perimeter 20,163,634
Northwest Atlanta 16,065,334 2 421,718 12.0%
Buckhead 15,200,424
North Fulton 14,284,456 3 2,614,446 13.0%
Midtown Atlanta 14,615,297
Northeast Atlanta 7,100,196 4 2,476,869 15.4%
Downtown Atlanta 13,827,095
South Atlanta 1,595,393 5 2,481,231 16.3%

6 2,644,982 18.5%

7 2,750,863 18.8%

8 1,535,711 21.6%

9 3,290,468 23.8%

10 430,256 27.0% 97%

Source: CoStar Property• Source: CoStar Property•

Historical Analysis

Existing Vacant Space Occupied Space Quoted

Period Inventory Direct % Sublet % Total % SF % Rates

2013 3q 14,284,456 2,565,012 18.0% 79,970 0.6% 2,644,982 18.5% 11,639,474 81.5% $20.24
2013 2q 14,284,456 2,823,622 19.8% 42,706 0.3% 2,866,328 20.1% 11,418,128 79.9% $20.36
2013 1q 14,284,456 2,901,784 20.3% 57,519 0.4% 2,959,303 20.7% 11,325,153 79.3% $19.86
2012 4q 14,284,456 2,846,436 19.9% 97,892 0.7% 2,944,328 20.6% 11,340,128 79.4% $19.72
2012 3q 14,232,456 2,503,159 17.6% 148,462 1.0% 2,651,621 18.6% 11,580,835 81.4% $19.75
2012 2q 14,232,456 2,507,286 17.6% 158,425 1.1% 2,665,711 18.7% 11,566,745 81.3% $19.68
2012 1q 14,232,456 2,451,118 17.2% 197,721 1.4% 2,648,839 18.6% 11,583,617 81.4% $19.74
2011 4q 14,232,456 2,461,301 17.3% 210,407 1.5% 2,671,708 18.8% 11,560,748 81.2% $19.87
2011 3q 14,232,456 2,448,348 17.2% 237,381 1.7% 2,685,729 18.9% 11,546,727 81.1% $19.77
2011 2q 14,232,456 2,101,508 14.8% 274,280 1.9% 2,375,788 16.7% 11,856,668 83.3% $19.43
2011 1q 14,232,456 2,128,580 15.0% 340,186 2.4% 2,468,766 17.3% 11,763,690 82.7% $19.55
2010 4q 14,232,456 2,110,217 14.8% 460,770 3.2% 2,570,987 18.1% 11,661,469 81.9% $19.41
2010 3q 14,232,456 2,238,552 15.7% 403,776 2.8% 2,642,328 18.6% 11,590,128 81.4% $19.59
2010 2q 14,232,456 2,166,154 15.2% 423,693 3.0% 2,589,847 18.2% 11,642,609 81.8% $19.66
2010 1q 14,232,456 2,117,465 14.9% 410,500 2.9% 2,527,965 17.8% 11,704,491 82.2% $19.67

Source: CoStar Property•

© 2013 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2013

Atlanta Office Market

NORTH FULTON - CLASS B

VACANCY ANALYSIS

Overall Vacancy & Quoted Rates

Vacancy Rate Average Vacancy Quoted Rates

25.00% $15.60

$15.40

20.00%

$15.20

15.00% $15.00

$14.80

10.00% $14.60

$14.40

5.00%

$14.20

0.00% $14.00

2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2013 2q 2013 3q

Source: CoStar Property•

Markets Ranked by Vacancy Vacancy Distribution

Existing Direct w/ Sublet Vacant 2%
Inventory Direct
Market 1,540,418 Rank SF %
West Atlanta 9,093,539 Sublet
Downtown Atlanta 9,171,560 1 123,053 8.0%
South Atlanta 4,511,440
Buckhead 12,408,495 2 838,821 9.2%
Northlake 5,004,689
Midtown Atlanta 9,243,380 3 1,171,599 12.8%
North Fulton 14,712,321
Northwest Atlanta 13,483,258 4 715,970 15.9%
Northeast Atlanta 7,897,602
Central Perimeter 5 1,978,410 15.9%

6 877,027 17.5%

7 1,711,299 18.5%

8 3,559,150 24.2%

9 3,293,385 24.4%

10 2,134,544 27.0% 98%

Source: CoStar Property• Source: CoStar Property•

Historical Analysis

Existing Vacant Space Occupied Space Quoted

Period Inventory Direct % Sublet % Total % SF % Rates

2013 3q 9,243,380 1,675,944 18.1% 35,355 0.4% 1,711,299 18.5% 7,532,081 81.5% $15.37
2013 2q 9,243,380 1,638,986 17.7% 84,722 0.9% 1,723,708 18.6% 7,519,672 81.4% $15.07
2013 1q 9,243,380 1,633,631 17.7% 23,379 0.3% 1,657,010 17.9% 7,586,370 82.1% $14.83
2012 4q 9,243,380 1,697,928 18.4% 13,105 0.1% 1,711,033 18.5% 7,532,347 81.5% $14.83
2012 3q 9,243,380 1,661,820 18.0% 11,566 0.1% 1,673,386 18.1% 7,569,994 81.9% $14.96
2012 2q 9,243,380 1,698,029 18.4% 44,808 0.5% 1,742,837 18.9% 7,500,543 81.1% $14.81
2012 1q 9,243,380 1,676,156 18.1% 33,242 0.4% 1,709,398 18.5% 7,533,982 81.5% $14.61
2011 4q 9,243,380 1,844,613 20.0% 25,920 0.3% 1,870,533 20.2% 7,372,847 79.8% $15.20
2011 3q 9,243,380 1,798,936 19.5% 49,920 0.5% 1,848,856 20.0% 7,394,524 80.0% $15.12
2011 2q 9,243,380 1,864,215 20.2% 45,711 0.5% 1,909,926 20.7% 7,333,454 79.3% $15.20
2011 1q 9,243,380 1,851,942 20.0% 35,024 0.4% 1,886,966 20.4% 7,356,414 79.6% $15.18
2010 4q 9,243,380 1,891,318 20.5% 72,924 0.8% 1,964,242 21.3% 7,279,138 78.7% $15.48
2010 3q 9,243,380 1,863,283 20.2% 150,145 1.6% 2,013,428 21.8% 7,229,952 78.2% $15.47
2010 2q 9,243,380 1,909,329 20.7% 142,270 1.5% 2,051,599 22.2% 7,191,781 77.8% $15.81
2010 1q 9,243,380 1,890,669 20.5% 142,270 1.5% 2,032,939 22.0% 7,210,441 78.0% $15.69

Source: CoStar Property•

© 2013 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2013

Atlanta Office Market

NORTH FULTON - CLASS C

VACANCY ANALYSIS

Overall Vacancy & Quoted Rates

Vacancy Rate Average Vacancy Quoted Rates

7.00% $18.00

6.00% $16.00

$14.00

5.00%

$12.00

4.00% $10.00

3.00% $8.00

$6.00

2.00%

$4.00

1.00% $2.00

0.00% $0.00

2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2013 2q 2013 3q

Source: CoStar Property•

Markets Ranked by Vacancy Vacancy Distribution

Existing Direct w/ Sublet Vacant 0%
Inventory Direct
Market Rank SF %
North Fulton 690,569 Sublet
Midtown Atlanta 689,989 1 41,799 6.1%
Northlake 3,435,436
Northeast Atlanta 1,712,053 2 43,288 6.3%
Northwest Atlanta 1,860,044
Buckhead 565,676 3 294,702 8.6%
Downtown Atlanta 3,500,968
South Atlanta 2,258,251 4 161,162 9.4%
Central Perimeter 1,145,177
West Atlanta 1,659,585 5 193,933 10.4%

6 75,329 13.3%

7 681,850 19.5%

8 480,520 21.3%

9 331,820 29.0%

10 688,291 41.5% 100%

Source: CoStar Property• Source: CoStar Property•

Historical Analysis

Existing Vacant Space Occupied Space Quoted

Period Inventory Direct % Sublet % Total % SF % Rates

2013 3q 690,569 41,799 6.1% 0 0.0% 41,799 6.1% 648,770 93.9% $14.28
2013 2q 690,569 38,439 5.6% 0 0.0% 38,439 5.6% 652,130 94.4% $14.32
2013 1q 690,569 32,001 4.6% 0 0.0% 32,001 4.6% 658,568 95.4% $14.12
2012 4q 690,569 20,457 3.0% 0 0.0% 20,457 3.0% 670,112 97.0% $12.11
2012 3q 690,569 20,757 3.0% 0 0.0% 20,757 3.0% 669,812 97.0% $12.98
2012 2q 690,569 21,957 3.2% 0 0.0% 21,957 3.2% 668,612 96.8% $12.97
2012 1q 690,569 24,857 3.6% 0 0.0% 24,857 3.6% 665,712 96.4% $13.46
2011 4q 690,569 21,557 3.1% 0 0.0% 21,557 3.1% 669,012 96.9% $13.72
2011 3q 690,569 22,753 3.3% 0 0.0% 22,753 3.3% 667,816 96.7% $14.06
2011 2q 690,569 27,175 3.9% 0 0.0% 27,175 3.9% 663,394 96.1% $14.10
2011 1q 690,569 28,175 4.1% 0 0.0% 28,175 4.1% 662,394 95.9% $14.83
2010 4q 690,569 23,840 3.5% 0 0.0% 23,840 3.5% 666,729 96.5% $15.12
2010 3q 690,569 29,431 4.3% 0 0.0% 29,431 4.3% 661,138 95.7% $16.38
2010 2q 690,569 19,631 2.8% 0 0.0% 19,631 2.8% 670,938 97.2% $18.21
2010 1q 690,569 27,043 3.9% 0 0.0% 27,043 3.9% 663,526 96.1% $17.03

Source: CoStar Property•

© 2013 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

AbsorptionActivity

THIRD-QUARTER 2013

The North Fulton Office Market

Third Quarter 2013

Atlanta Office Market

NORTH FULTON - CLASS A,B&C

ABSORPTION ANALYSIS

Overall Net Absorption

Absorption Vacancy Average Absorption

300,000 20.00%

200,000 19.50%
100,000 19.00%
18.50%
0 18.00%
(100,000) 17.50%
(200,000)
(300,000)

(400,000) 17.00%

2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2013 2q 2013 3q

Source: CoStar Property•

Markets Ranked by Net Absorption Direct, Sublet Absorption

Existing YTD Net Absorption Direct SF Sublet SF
Inventory
Market 29,206,413 Rank SF 0.30
Central Perimeter 20,277,540 0.20
Buckhead 32,637,699 1 721,836 0.10
Northwest Atlanta 24,218,405 0.00
North Fulton 22,295,507 2 311,634 (0.10)
Northeast Atlanta 26,421,602 (0.20)
Downtown Atlanta 3 309,501 Millions of SF (0.30)
West Atlanta 3,271,503 (0.40)
Midtown Atlanta 20,309,975 4 277,738
South Atlanta 13,025,204 2010
Northlake 19,356,475 5 188,036 3q

6 57,949

7 52,648

8 51,491

9 51,231 2011 2011 2012 2012 2013 2013
1q 3q 1q 3q 1q 3q
10 (92,129)

Source: CoStar Property• Source: CoStar Property•

Historical Analysis

Period Existing Direct Gross Absorption Total Direct Net Absorption Total Occupied
Inventory Sublet Sublet SF
2013 3q 423,259 509,912 218,292 230,395
2013 2q 24,218,405 339,262 86,653 379,289 66,369 12,103 19,839 19,820,325
2013 1q 24,218,405 304,182 40,027 360,161 (2,595) (46,530) 27,504 19,589,930
2012 4q 24,218,405 446,509 55,979 561,630 30,099 19,570,091
2012 3q 24,218,405 433,505 115,121 522,451 (327,085) 49,031 (278,054) 19,542,587
2012 2q 24,166,405 349,899 88,946 487,314 41,536 43,205 84,741 19,820,641
2012 1q 24,166,405 576,683 137,415 610,025 (75,141) 27,730 (47,411) 19,735,900
2011 4q 24,166,405 399,843 33,342 479,811 19,783,311
2011 3q 24,166,405 485,911 79,968 566,862 175,340 5,364 180,704 19,602,607
2011 2q 24,166,405 512,560 80,951 741,251 (57,434) 50,974 (6,460) 19,609,067
2011 1q 24,166,405 289,871 228,691 496,471 (277,139) 32,690 19,853,516
2010 4q 24,166,405 456,710 206,600 594,373 15,799 55,219 (244,449) 19,782,498
2010 3q 24,166,405 281,823 137,663 386,074 16,678 158,484 71,018 19,607,336
2010 2q 24,166,405 149,218 104,251 176,762 105,891 20,227 19,481,218
2010 1q 24,166,405 295,531 27,544 397,517 (36,152) 12,042 175,162 19,505,328
24,166,405 101,986 (59,937) (13,193) 126,118 19,578,458
(83,164) (15,132) (24,110)
(73,130)
(98,296)

Source: CoStar Property•

© 2013 CoStar Realty Information, Inc. The CoStar Office Rep www.costar.com

Third Quarter 2013

Atlanta Office Market

NORTH FULTON - CLASS A

ABSORPTION ANALYSIS

Overall Net Absorption

Absorption Vacancy Average Absorption

300,000 25.00%

200,000 20.00%
100,000 15.00%

0

(100,000) 10.00%
(200,000) 5.00%
(300,000)

(400,000) 0.00%

2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2013 2q 2013 3q

Source: CoStar Property•

Markets Ranked by Net Absorption Direct, Sublet Absorption

Existing YTD Net Absorption Direct SF Sublet SF
Inventory
Market 20,163,634 Rank SF 0.30
Central Perimeter 0.20
Northeast Atlanta 7,100,196 1 650,777 0.10
Northwest Atlanta 16,065,334 0.00
North Fulton 14,284,456 2 379,414 (0.10)
Buckhead 15,200,424 (0.20)
Downtown Atlanta 13,827,095 3 339,575 Millions of SF (0.30)
South Atlanta (0.40)
Northlake 1,595,393 4 299,346
Midtown Atlanta 3,512,544 2010
West Atlanta 14,615,297 5 263,312 3q

71,500 6 70,363

7 54,830

8 50,621

9 10,246 2011 2011 2012 2012 2013 2013
1q 3q 1q 3q 1q 3q
10 0

Source: CoStar Property• Source: CoStar Property•

Historical Analysis

Period Existing Direct Gross Absorption Total Direct Net Absorption Total Occupied
Inventory Sublet Sublet SF
2013 3q 335,376 367,700 258,610 221,346
2013 2q 14,284,456 239,666 32,324 275,695 78,162 (37,264) 92,975 11,639,474
2013 1q 14,284,456 142,417 36,029 187,734 (55,348) 14,813 (14,975) 11,418,128
2012 4q 14,284,456 358,732 45,317 457,552 40,373 11,325,153
2012 3q 14,284,456 290,685 98,820 343,752 (291,277) 50,570 (240,707) 11,340,128
2012 2q 14,232,456 230,352 53,067 361,738 4,127 14,090 11,580,835
2012 1q 14,232,456 331,446 131,386 354,488 9,963 (16,872) 11,566,745
2011 4q 14,232,456 282,106 23,042 337,074 (56,168) 39,296 22,869 11,583,617
2011 3q 14,232,456 253,492 54,968 318,210 10,183 12,686 14,021 11,560,748
2011 2q 14,232,456 379,727 64,718 511,739 (12,953) 26,974 11,546,727
2011 1q 14,232,456 132,012 264,279 (346,840) 36,899 (309,941) 11,856,668
2010 4q 14,232,456 96,679 167,600 307,066 27,072 65,906 92,978 11,763,690
2010 3q 14,232,456 269,686 37,380 251,752 (18,363) 120,584 11,661,469
2010 2q 14,232,456 155,918 95,834 123,856 128,335 (56,994) 102,221 11,590,128
2010 1q 14,232,456 27,544 304,475 (72,398) 19,917 71,341 11,642,609
14,232,456 96,312 98,326 (48,689) (13,193) (52,481) 11,704,491
206,149 (29,998) (18,792) (61,882)
(48,790)

Source: CoStar Property•

© 2013 CoStar Realty Information, Inc. The CoStar Office Rep www.costar.com

Third Quarter 2013

Atlanta Office Market A

NORTH FULTON - CLASS

MARKET SHARE OF NET ABSORPTION

Net Absorption in Select Buildings

(15,000) (10,000) (5,000) 0 5,000 10,000 15,000

4800 North Point Pkwy

400 Northwinds Center West

Three Northwinds Center

100 Milton Park

Northwinds V

Northwinds VI

Windward Plaza - Building 300

Stonebridge II

The Park at Windward Concourse

Royal Centre Four

The Paddocks

Two Northwinds Center

One Northwinds Center

Building Name Submarket RBA Total 1st Qtr Net Absorption YTD Total
4800 North Point Pkwy N Fulton/Forsyth County Vacant SF 0 2nd Qtr 3rd Qtr 4th Qtr 13,309

75,304 3,208 13,309 0 0

400 Northwinds Center West N Fulton/Forsyth County 147,654 20,427 0 12,161 0 0 12,161

Three Northwinds Center N Fulton/Forsyth County 147,711 13,878 5,343 1,335 0 0 6,678

100 Milton Park N Fulton/Forsyth County 150,000 3,227 3,660 0 611 0 4,271

Northwinds V N Fulton/Forsyth County 148,180 0 0 0 1,942 0 1,942

Northwinds VI N Fulton/Forsyth County 150,376 6,747 1,425 0 0 0 1,425

Windward Plaza - Building 300 N Fulton/Forsyth County 203,248 00000 0

Stonebridge II N Fulton/Forsyth County 141,804 00000 0

The Park at Windward Concourse N Fulton/Forsyth County 100,364 22,660 5,297 0 (5,360) 0 (63)

Royal Centre Four N Fulton/Forsyth County 301,436 82,308 0 (2,102) 0 0 (2,102)

The Paddocks N Fulton/Forsyth County 97,017 18,134 (8,411) (2,368) 1,596 0 (9,183)

Two Northwinds Center N Fulton/Forsyth County 146,252 26,085 (14,405) 1,732 0 0 (12,673)

One Northwinds Center N Fulton/Forsyth County 148,883 17,469 (5,890) (7,171) 0 0 (13,061)

Subtotal Primary Competitors 1,958,229 214,143 (12,981) 16,896 (1,211) 0 2,704
Remaining North Fulton Class "A" Market 12,326,227 2,430,839 (1,994) 76,079 222,557 0 296,642
Total North Fulton Class "A" Market 14,284,456 2,644,982 92,975 221,346 0 299,346
(14,975)
Source: CoStar Property®

© 2013 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2013

Atlanta Office Market

NORTH FULTON - CLASS B

ABSORPTION ANALYSIS

Overall Net Absorption

Absorption Vacancy Average Absorption

200,000 25.00%

150,000 20.00%
100,000 15.00%
10.00%
50,000 5.00%
0

(50,000)

(100,000) 0.00%

2010 3q 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2013 2q 2013 3q

Source: CoStar Property•

Markets Ranked by Net Absorption Direct, Sublet Absorption

Existing YTD Net Absorption Direct SF Sublet SF
Inventory 0.20
Market Rank SF
Buckhead 4,511,440
Central Perimeter 7,897,602 1 55,587 0.15
West Atlanta 1,540,418
South Atlanta 9,171,560 2 43,186
Midtown Atlanta 5,004,689
North Fulton 9,243,380 3 36,549 Millions of SF 0.10
Downtown Atlanta 9,093,539
Northwest Atlanta 14,712,321 4 5,667 0.05
Northlake 12,408,495
Northeast Atlanta 13,483,258 5 2,854 0.00

6 (266)

7 (4,581) (0.05)

8 (36,473) (0.10)
2010
9 (103,077) 3q 2011 2011 2012 2012 2013 2013
1q 3q 1q 3q 1q 3q
10 (178,069)

Source: CoStar Property• Source: CoStar Property•

Historical Analysis

Period Existing Direct Gross Absorption Total Direct Net Absorption Total Occupied
Inventory Sublet Sublet SF
2013 3q 86,479 140,808 (36,958) 12,409
2013 2q 9,243,380 90,596 54,329 94,594 (5,355) 49,367 (66,698) 7,532,081
2013 1q 9,243,380 157,016 3,998 64,297 (61,343) 54,023 7,519,672
2012 4q 9,243,380 85,477 167,678 (10,274) (37,647) 7,586,370
2012 3q 9,243,380 141,620 10,662 101,778 (36,108) 69,451 7,532,347
2012 2q 9,243,380 113,302 16,301 177,499 36,209 (1,539) (33,439) 7,569,994
2012 1q 9,243,380 242,137 35,879 119,331 (21,873) 33,242 161,135 7,500,543
2011 4q 9,243,380 114,737 252,437 168,457 (11,566) (21,677) 7,533,982
2011 3q 9,243,380 227,497 6,029 139,737 (45,677) (7,322) 61,070 7,372,847
2011 2q 9,243,380 129,333 10,300 243,730 65,279 24,000 (22,960) 7,394,524
2011 1q 9,243,380 192,192 25,000 226,012 (12,273) (4,209) 77,276 7,333,454
2010 4q 9,243,380 179,900 16,233 231,192 39,376 (10,687) 49,186 7,356,414
2010 3q 9,243,380 125,905 96,679 280,183 (28,035) 37,900 38,171 7,279,138
2010 2q 9,243,380 45,494 39,000 134,322 46,046 77,221 (18,660) 7,229,952
2010 1q 9,243,380 88,382 100,283 (18,660) (7,875) (46,861) 7,191,781
9,243,380 45,494 (50,521) 7,210,441
8,417 92,042 0
0 3,660

3,660

Source: CoStar Property•

© 2013 CoStar Realty Information, Inc. The CoStar Office Rep www.costar.com

Third Quarter 2013

Atlanta Office Market B

NORTH FULTON - CLASS

MARKET SHARE OF NET ABSORPTION

Net Absorption in Select Buildings

(60,000) (50,000) (40,000) (30,000) (20,000) (10,000) 0 10,000 20,000 30,000 40,000 50,000

Corporate Campus - Bldg 1
State Bridge Exchange
R.L. McGuinn Bldg
1121 Alderman Dr

Lake at Northpoint Park - Bldg I
Fulton Medical Plaza
Windward Park

North Fulton Medical Arts Center
Crosspointe

Mansell Forest
Old Roswell Lakes
Roswell Summit - 200
Windward Business Center
North Fulton Executive Center - Bldg D
Colonial Park Commons

Heritage Walk
Dominion Court Office Park (Jefferson Bldg)

The Bradstone
The Gates @ McGinnis Ferry - Bldg 300 - Phase I

4300 North Point Pky
Roswell Summit - 100
Meadows Summit - 6250 Shiloh Road

Pavilion Center
Oxford Lake Business Ctr - Building 200

3970 Johns Creek Ct

Total Net Absorption

Building Name Submarket RBA Vacant SF 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD Total

Corporate Campus - Bldg 1 N Fulton/Forsyth County 56,198 15,000 56,198 (15,000) 0 0 41,198
State Bridge Exchange N Fulton/Forsyth County 30,070 10,000 5,000 0 0 0 5,000
R.L. McGuinn Bldg N Fulton/Forsyth County 27,000 3,500 0 0 0 3,500
1121 Alderman Dr N Fulton/Forsyth County 28,745 0 (4,450) 2,050 0 3,250
Lake at Northpoint Park - Bldg I N Fulton/Forsyth County 22,000 3,720 0 5,650 3,127 0 3,127
Fulton Medical Plaza N Fulton/Forsyth County 32,541 2,234 0 0 0 2,234
Windward Park N Fulton/Forsyth County 49,657 0 0 0 2,193 0 2,193
North Fulton Medical Arts Center N Fulton/Forsyth County 58,432 8,532 (3,860) 0 2,039 0 1,840
Crosspointe N Fulton/Forsyth County 30,726 12,991 0 1,242 0 1,242
Mansell Forest N Fulton/Forsyth County 52,676 21,780 0 3,661 0 0 1,134
Old Roswell Lakes N Fulton/Forsyth County 17,100 2,380 (825) 0 0 0 825
Roswell Summit - 200 N Fulton/Forsyth County 63,738 7,690 0 0 14
Windward Business Center N Fulton/Forsyth County 18,300 0 0 1,134 (404) 0 (404)
North Fulton Executive Center - Bldg D N Fulton/Forsyth County 36,000 2,450 0 1,650 (964) 0 (964)
Colonial Park Commons N Fulton/Forsyth County 18,437 29,793 1,500 (7,676) (2,475) 0 (975)
Heritage Walk N Fulton/Forsyth County 19,042 2,950 (100) (2,500) 0 (1,203)
Dominion Court Office Park (Jefferson Bldg N Fulton/Forsyth County 27,500 0 0 0 0 (1,380)
The Bradstone N Fulton/Forsyth County 19,404 964 (2,318) 0 1,159 0 (2,280)
The Gates @ McGinnis Ferry - Bldg 300 - P N Fulton/Forsyth County 15,000 2,475 0 0 (2,500) 0 (2,500)
4300 North Point Pky N Fulton/Forsyth County 60,795 4,850 0 1,397 (3,871) 0 (3,871)
Roswell Summit - 100 N Fulton/Forsyth County 63,604 6,480 (5,875) (1,380) 0 0 (5,875)
Meadows Summit - 6250 Shiloh Road N Fulton/Forsyth County 72,000 3,589 (9,740) (1,121) 3,667 0 (6,073)
Pavilion Center N Fulton/Forsyth County 44,864 5,000 (3,916) 0 2,999 0 (6,558)
Oxford Lake Business Ctr - Building 200 N Fulton/Forsyth County 53,324 3,871 5,551 0 (21,302) 0
3970 Johns Creek Ct N Fulton/Forsyth County 130,783 34,468 0 0 0 0 (15,751)
Subtotal Primary Competitors 1,047,936 11,990 0 (15,540) 0 (49,353)
Remaining North Fulton Class "B" Market 8,195,444 15,658 50,589 (5,641) 27,949 0 (31,630)
Total North Fulton Class "B" Market 9,243,380 41,495 3,434 0 12,409 0 31,364
49,353 (49,353)
289,789 54,023 (66,679) (266)
1,421,510 (19)
1,711,299 (66,698)

Source: CoStar Property®

© 2013 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2013

Atlanta Office Market

NORTH FULTON - CLASS C

ABSORPTION ANALYSIS

Overall Net Absorption

8,000 Absorption Vacancy Average Absorption 7.00%
6,000 2010 4q 2011 1q 2011 4q 2012 1q 2012 4q 2013 1q 2013 2q
4,000 6.00%
2,000
5.00%
0
(2,000) 4.00%
(4,000)
(6,000) 3.00%
(8,000)
(10,000) 2.00%
(12,000)
(14,000) 1.00%

0.00%

2010 3q 2011 2q 2011 3q 2012 2q 2012 3q 2013 3q

Source: CoStar Property•

Markets Ranked by Net Absorption Direct, Sublet Absorption

Existing YTD Net Absorption Direct SF Sublet SF
Inventory
Market Rank SF 0.01
Midtown Atlanta 689,989 0.01
Central Perimeter 1,145,177 1 38,391 0.00
West Atlanta 1,659,585 0.00
Northwest Atlanta 1,860,044 2 27,873 0.00
Buckhead (0.00)
Downtown Atlanta 565,676 3 16,099 Millions of SF (0.00)
South Atlanta 3,500,968 (0.01)
Northeast Atlanta 2,258,251 4 6,399 (0.01)
North Fulton 1,712,053 (0.01)
Northlake 5 (7,265) (0.01)
690,569 (0.01)
3,435,436 6 (7,833)
2010
7 (9,266) 3q

8 (13,309)

9 (21,342) 2011 2011 2012 2012 2013 2013
1q 3q 1q 3q 1q 3q
10 (39,673)

Source: CoStar Property• Source: CoStar Property•

Historical Analysis

Period Existing Direct Gross Absorption Total Direct Net Absorption Total Occupied
Inventory Sublet Sublet SF
2013 3q 1,404 1,404 (3,360) (3,360)
2013 2q 690,569 9,000 0 9,000 (6,438) 0 (6,438) 648,770
2013 1q 690,569 4,749 0 4,749 (11,544) 0 (11,544) 652,130
2012 4q 690,569 2,300 0 2,300 0 658,568
2012 3q 690,569 1,200 0 1,200 300 0 300 670,112
2012 2q 690,569 6,245 0 6,245 1,200 0 1,200 669,812
2012 1q 690,569 3,100 0 3,100 2,900 0 2,900 668,612
2011 4q 690,569 3,000 0 3,000 (3,300) 0 (3,300) 665,712
2011 3q 690,569 4,922 0 4,922 1,196 0 1,196 669,012
2011 2q 690,569 3,500 0 3,500 4,422 0 4,422 667,816
2011 1q 690,569 1,000 0 1,000 1,000 0 1,000 663,394
2010 4q 690,569 7,124 0 7,124 (4,335) 0 (4,335) 662,394
2010 3q 690,569 0 5,591 0 5,591 666,729
2010 2q 690,569 0 0 0 (9,800) 0 (9,800) 661,138
2010 1q 690,569 7,412 0 7,412 7,412 0 7,412 670,938
690,569 1,000 0 1,000 (2,645) 0 (2,645) 663,526

Source: CoStar Property•

© 2013 CoStar Realty Information, Inc. The CoStar Office Rep www.costar.com

Third Quarter 2013

Atlanta Office Market C

NORTH FULTON - CLASS

MARKET SHARE OF NET ABSORPTION

Net Absorption in Select Buildings

(5,000) (4,000) (3,000) (2,000) (1,000) 0 1,000 2,000

North Fulton Professional Center
The Meadows at Bluegrass
5000 McGinnis Ferry Rd

Roswell Professional Center - Building D
Colonial Park Commons 2
925 Sanders Rd

800 Old Dawson Village Rd E
150 Hembree Park Dr
1010 Mansell Ct
1020 Mansell Ct

1300 Northside Forsyth Dr
1305 Warsaw Rd

154 Kimball Bridge Rd
318 Tribble Gap Rd

3921 Johns Creek Ct
4895 Windward Pky

543 Atlanta Rd
580 Atlanta Rd
770 Old Roswell Pl
6490 Shiloh Rd

Market Place
5983 Highway 53 E
Old Roswell Professional Center
Hembree Professional Bldg - A
Hembree Professional Bldg - B

Total Net Absorption

Building Name Submarket RBA Vacant SF 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD Total

North Fulton Professional Center N Fulton/Forsyth County 15,839 720 1,404 0 0 0 1,404
The Meadows at Bluegrass N Fulton/Forsyth County 26,040 0 0 0 0 0 0
5000 McGinnis Ferry Rd N Fulton/Forsyth County 20,000 0 0 0 0 0 0
Roswell Professional Center - Building D N Fulton/Forsyth County 16,997 0 0 0 0 0
Colonial Park Commons 2 N Fulton/Forsyth County 20,000 1,433 0 0 0 0 0
925 Sanders Rd N Fulton/Forsyth County 17,138 0 0 0 0 0 0
800 Old Dawson Village Rd E Dawson County 30,000 0 0 0 0 0
150 Hembree Park Dr N Fulton/Forsyth County 44,343 3,600 0 0 0 0 0
1010 Mansell Ct N Fulton/Forsyth County 54,798 2,400 0 0 0 0 0
1020 Mansell Ct N Fulton/Forsyth County 57,180 0 0 0 0 0
1300 Northside Forsyth Dr N Fulton/Forsyth County 16,669 0 0 0 0 0 0
1305 Warsaw Rd N Fulton/Forsyth County 34,174 0 0 0 0 0 0
154 Kimball Bridge Rd N Fulton/Forsyth County 28,816 0 0 0 0 0 0
318 Tribble Gap Rd N Fulton/Forsyth County 17,041 0 0 0 0 0 0
3921 Johns Creek Ct N Fulton/Forsyth County 19,494 0 0 0 0 0 0
4895 Windward Pky N Fulton/Forsyth County 23,945 0 0 0 0 0 0
543 Atlanta Rd N Fulton/Forsyth County 25,619 0 0 0 0 0 0
580 Atlanta Rd N Fulton/Forsyth County 42,207 0 0 0 0 0 0
770 Old Roswell Pl N Fulton/Forsyth County 34,392 0 0 0 0 0 0
6490 Shiloh Rd N Fulton/Forsyth County 40,177 0 0 0 0 0 0
Market Place N Fulton/Forsyth County 16,000 0 1,000 (1,000) 0
5983 Highway 53 E Dawson County 18,000 0 (1,500) 0 0 0 (1,500)
Old Roswell Professional Center N Fulton/Forsyth County 15,700 0 (2,082) 0 (2,360) 0 (2,082)
Hembree Professional Bldg - A N Fulton/Forsyth County 17,000 3,500 (4,224) 0 0 (2,860)
Hembree Professional Bldg - B N Fulton/Forsyth County 21,000 8,382 (500) (4,680) 0 0 (4,224)
Subtotal Primary Competitors 672,569 5,460 0 (7,904) (3,360) 0 (4,680)
Remaining North Fulton Class "C" Market 18,000 4,224 0 1,466 0 0 (13,942)
Total North Fulton Class "C" Market 690,569 4,680 (6,438) (3,360) 0 (7,400)
34,399 (2,678) (21,342)
Source: CoStar Property® 7,400 (8,866)
41,799 (11,544)

© 2013 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

BuildingInventory

THIRD-QUARTER 2013

The North Fulton Office Market

Third Quarter 2013

Atlanta Office Market

N O R T H F U L T O N - C L A S S A,B&C

INVENTORY ANALYSIS

Deliveries vs Construction Starts

Delivered SF Const Starts Avg Del SF

60,000

50,000

40,000

30,000

20,000

10,000

0 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2013 2q 2013 3q
2010 3q

Source: CoStar Property•

Markets Ranked by Inventory Under Construction SF

Existing Inventory % of Class A,B&C 0.06

Market SF Rank Inventory Vacancy
Northwest Atlanta
Central Perimeter 32,637,699 1 15% 19.1% 0.05
Downtown Atlanta
North Fulton 29,206,413 2 14% 17.4% 0.04
Northeast Atlanta
Midtown Atlanta 26,421,602 3 15% 18.2%
Buckhead
Northlake 24,218,405 4 16% 18.2% 0.03
South Atlanta
West Atlanta 22,295,507 5 18% 22.4% 0.02

20,309,975 6 21% 18.1%

20,277,540 7 20% 16.1% 0.01

19,356,475 8 19% 13.9% 0.00

13,025,204 9 12% 16.0% 2010 2011 2011 2012 2012 2013 2013
3q 1q 3q 1q 3q 1q 3q
3,271,503 10 3% 24.8%

Source: CoStar Property• Source: CoStar Property•

Historical Analysis

Existing Inventory Vacancy Delivered Inventory UC Inventory Construction
% Total RBA Starts
Period # Bldgs Total RBA # Bldgs Total RBA Avg Bld # Bldgs Avg Bld
18.2% 0 0
2013 3q 341 24,218,405 19.1% 0 00 0 0 0 0
2013 2q 19.2% 0 0 0 0
2013 1q 341 24,218,405 19.3% 0 00 0 0 0 0
2012 4q 18.0% 0 52,000 0 0
2012 3q 341 24,218,405 18.3% 0 00 1 52,000 52,000 0
2012 2q 18.1% 1 52,000 52,000 0
2012 1q 341 24,218,405 18.9% 1 52,000 52,000 1 52,000 52,000 52,000
2011 4q 18.9% 1 0 52,000 0
2011 3q 340 24,166,405 17.8% 0 00 0 0 0 0
2011 2q 18.1% 0 0 0 0
2011 1q 340 24,166,405 18.9% 0 00 0 0 0 0
2010 4q 19.4% 0 0 0 0
2010 3q 340 24,166,405 19.3% 0 00 0 0 0 0
2010 2q 19.0% 0 0 0 0
2010 1q 340 24,166,405 0 00 0 0

340 24,166,405 0 00

340 24,166,405 0 00

340 24,166,405 0 00

340 24,166,405 0 00

340 24,166,405 0 00

340 24,166,405 0 00

340 24,166,405 0 00

Source: CoStar Property•

© 2013 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2013

Atlanta Office Market

NORTH FULTON - CLASS A

INVENTORY ANALYSIS

Deliveries vs Construction Starts

Delivered SF Const Starts Avg Del SF

60,000

50,000

40,000

30,000

20,000

10,000

0 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2013 2q 2013 3q
2010 3q

Source: CoStar Property•

Markets Ranked by Inventory Under Construction SF

Existing Inventory % of Class A 0.06
Inventory Vacancy
Market SF Rank
Central Perimeter
Northwest Atlanta 20,163,634 1 19% 13.0% 0.05
Buckhead
Midtown Atlanta 16,065,334 2 15% 15.4% 0.04
North Fulton
Downtown Atlanta 15,200,424 3 18% 16.3%
Northeast Atlanta
Northlake 14,615,297 4 21% 18.8% 0.03
South Atlanta
West Atlanta 14,284,456 5 26% 18.5% 0.02

13,827,095 6 34% 23.8%

7,100,196 7 18% 21.6% 0.01

3,512,544 8 9% 12.0% 0.00

1,595,393 9 3% 27.0% 2010 2011 2011 2012 2012 2013 2013
3q 1q 3q 1q 3q 1q 3q
71,500 10 0% 0.0%

Source: CoStar Property• Source: CoStar Property•

Historical Analysis

Existing Inventory Vacancy Delivered Inventory UC Inventory Construction
% Total RBA Starts
Period # Bldgs Total RBA # Bldgs Total RBA Avg Bld # Bldgs Avg Bld
18.5% 0 0
2013 3q 101 14,284,456 20.1% 0 00 0 0 0 0
2013 2q 20.7% 0 0 0 0
2013 1q 101 14,284,456 20.6% 0 00 0 0 0 0
2012 4q 18.6% 0 52,000 0 0
2012 3q 101 14,284,456 18.7% 0 00 1 52,000 52,000 0
2012 2q 18.6% 1 52,000 52,000 0
2012 1q 101 14,284,456 18.8% 1 52,000 52,000 1 52,000 52,000 52,000
2011 4q 18.9% 1 0 52,000 0
2011 3q 100 14,232,456 16.7% 0 00 0 0 0 0
2011 2q 17.3% 0 0 0 0
2011 1q 100 14,232,456 18.1% 0 00 0 0 0 0
2010 4q 18.6% 0 0 0 0
2010 3q 100 14,232,456 18.2% 0 00 0 0 0 0
2010 2q 17.8% 0 0 0 0
2010 1q 100 14,232,456 0 00 0 0

100 14,232,456 0 00

100 14,232,456 0 00

100 14,232,456 0 00

100 14,232,456 0 00

100 14,232,456 0 00

100 14,232,456 0 00

100 14,232,456 0 00

Source: CoStar Property•

© 2013 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2013

Atlanta Office Market

NORTH FULTON - CLASS A

BUILDING ABSORPTION

All Buildings Included in Inventory

Vacant SF 2013 Net Absorption

Building Name RBA Direct SF Total SF Rate 1q 2q 3q 4q YTD

1. 100 Milton Park 150,000 3,227 3,227 2.2% 3,660 0 611 0 4,271
2. 100 North Point Center East 128,000 20,225 20,225 15.8% 0 0 0 0 0
3. 1000 Windward Concourse 252,301 28,494 28,494 11.3% 0 0 0 0 0
4. 11465 Johns Creek Pky 10,709 10,709 10.7% 0 10,383 0
5. 11695 Johns Creek Pky 99,818 22,212 22,212 22.0% (906) (6,053) 0 4,330
6. 1505 Northside Blvd 100,750 (12,406) 0 0 0 (13,312)
7. 200 Milton Park 117,000 0 0 0.0% 0 (32,805) 0 0
8. 200 North Point Center East 153,000 27,244 33,817 22.1% 0 0 0 0
9. 3330 Preston Ridge Rd 130,000 0 0 8,672 0 (24,133)
10. 400 Northwinds Center West 0 0 0.0% 0 12,161 0 0
11. 4501 Northpoint Pky 89,156 23,584 23,584 26.5% 0 0 0 0 0
12. 5405 Windward Pky 147,654 20,427 20,427 13.8% 0 0 0 0 0
13. Brookside 100 130,378 20,531 20,531 15.7% 0 0 0 0 12,161
14. Brookside One 246,000 23,215 23,215 0 3,673 0 0 0
15. Brookside Two 136,825 9.4% 0 0 0 0 0
16. Cobalt Center 133,355 9,436 9,436 6.9% 0 (3,993) 0 0 0
17. Corporate Center Two 133,442 15,495 15,495 11.6% 0 0 0 0 3,673
18. Corporate Centre One 405,600 21,628 21,628 16.2% 0 0 0 0 0
19. Deerfield Commons I 133,266 380,343 380,343 93.8% 0 0 0 0 (3,993)
20. Deerfield Point - Bldg 100 133,266 0.0% 0 4,323 0 0 0
21. Deerfield Point - Bldg 200 121,969 0 0 15.3% 0 0 0 0
22. One Deerfield Centre 101,587 20,406 20,406 0.0% 6,771 0 0 0
23. Emory Johns Creek Physicians Plaza 104,004 25.4% 0 0 2,658 0 13,752
24. Georgia 400 Center I 524,621 0 0 2.8% 0 0 0 0
25. Georgia 400 Center II 111,439 25,794 25,794 7.0% 7,112 0 0 105,786
26. Georgia 400 Center III 124,800 9.7% (7,171) 463 98,674 0 (4,644)
27. Jackson Healthcare 138,465 2,927 2,927 7.9% 0 2,527 0 4,073
28. 11360 Lakefield Dr 139,000 36,542 36,542 0.9% 0 0 4,073 0 1,123
29. 12000 Findley Rd 160,450 10,818 10,818 32.5% (2,523) 0 3,646 0 450
30. 6465 E Johns Crossing 0.0% 0 (13) 0 0
31. 6470 E Johns Crossing 72,752 9,802 9,802 0.0% 0 0 0 0 0
32. Johns Creek - Bldg 2 103,057 1,204 1,204 12.9% 0 6,181 0 0 0
33. Johns Creek Medical Pavilion 45,122 45,122 39.6% 0 (3,979) 0 0 0
34. Johns Creek Ridge I 98,871 19.3% 0 0 0 0 36,587
35. Lake at Northpoint Park - Bldg III 100,544 0 0 54.0% 0 0 0 (6,987)
36. 7310 McGinnis Ferry Rd 0 0 9.2% 3,459 0 33,128 0 20,972
37. Mansell Overlook 100 61,990 13,245 13,245 100.0% (12,755) 0 (413) 0 (251)
38. Mansell Overlook 200 90,000 39,166 39,166 67.7% 0 0 0 495
39. Mansell Overlook 300 101,991 19,370 19,370 30.8% (251) 0 24,951 0 0
40. Mansell Overlook 500 106,000 33,444 33,444 0.0% (835) 11,311 0 0 5,441
41. Mansell One 35,832 8,310 8,310 13.2% 0 1,270 0 (3,411)
42. Mansell Three 163,000 101,991 101,991 60.9% 5,441 0 1,330 0 0
43. Mansell Two 163,000 71,734 71,734 41.7% 2,436 5,517 0 0 52,695
44. Parkside Terrace East 163,252 11,032 11,032 81.9% 0 5,310 0 0 (15,925)
45. Parkside Terrace West 163,000 0 0 35.0% 0 2,477 0 14,503
46. Woodside Terrace 109,296 21,510 21,510 27.5% (18,603) 0 (5,847) 0 23,662
47. North Fulton Medical Plaza 126,140 99,481 99,481 16.4% 14,503 2,875 0 0 9,737
48. Northside Hospital - Building A 126,140 68,033 68,033 40.0% 18,145 0 0 (109)
49. Northside Hospital - Building C 126,480 89,544 89,544 100.0% 894 2,355 41,384 0 0
50. 1200 Northside Forsyth Dr 126,480 44,115 44,115 42.0% 4,422 0 1,408 0 2,875
51. Northwinds Seven 123,672 34,663 34,663 3.2% 0 16,109 0 0 0
52. Northwinds V 52,000 20,781 20,781 8.5% 0 0 0 0 2,355
53. Northwinds VI 96,190 50,579 50,579 0.0% 0 0 3,533 0 0
54. One Northwinds Center 190,310 123,672 123,672 4.4% 0 (7,171) (7,008) 0 14,824
55. Parkview I at Opus Woods 81,800 21,858 21,858 0.0% 0 0 0 0 1,942
56. Parkway 400 - Building Two 148,622 3,104 3,104 4.5% (1,285) 680 0 0 1,425
57. Parsons Meadow 148,180 9,361 16,165 11.7% 0 0 0 0 (13,061)
58. Pediatric Centre At Alpharetta 150,376 0 0 2.3% 1,425 0 0 0 0
59. Preston Ridge I 148,883 6,599 6,599 34.8% (5,890) 4,711 0 0 (1,363)
60. Preston Ridge II 164,717 0 0 70.0% 0 0 0 0 0
61. Preston Ridge III 143,241 6,747 6,747 11.5% (361) (6,187) 1,942 0 0
62. Preston Ridge IV 32,000 17,469 17,469 9.9% 0 0 0 0 (5,581)
63. Rosemont at Johns Creek 65,000 3,710 3,710 3.6% 0 0 0 0 9,887
64. 4800 North Point Pkwy 147,028 49,809 49,809 10.9% 0 13,309 0 0 7,467
65. Royal Centre Four 150,000 22,393 22,393 5.5% 0 (2,102) (1,682) 0 2,706
66. Royal Centre One 151,803 7,467 7,467 35.7% 0 (2,675) 0 0 0
150,320 0 14,500 4.3% 2,706 0 13,309
98,851 5,327 5,327 27.3% 0 (2,102)
75,304 16,532 16,532 44.1% 0 (10,292) 25,032
301,436 8,212 8,212 0 9,887
153,797 35,278 35,278 (1,579)
3,208 3,208 13,654
82,308 82,308 0
67,870 67,870 0
0
0

29,286

© 2013 CoStar Realty Information, Inc. www.costar.com

Third Quarter 2013

Atlanta Office Market

NORTH FULTON - CLASS A

BUILDING ABSORPTION

All Buildings Included in Inventory

Vacant SF 2013 Net Absorption

Building Name RBA Direct SF Total SF Rate 1q 2q 3q 4q YTD
22.4% 21,057 0 11,923
67. Royal Centre Three 165,527 37,105 37,105 26.6% (4,609) (4,525) 0 (4,806)
68. Royal Centre Two 149,711 39,842 39,842 7.1% 0 (4,806) 0 0
69. Royal Ridge 160,539 11,389 11,389 36.6% 0 4,406 0 0 4,406
70. Two Point Royal 123,633 45,249 45,249 0.4% (3,058) 3,877 0 0 819
71. Lake View I 181,310 6.2% (5,311) 29,504 0 0
72. Lake View II 180,773 800 800 0.0% 0 0 0 24,193
73. Oak View I 152,828 11,278 11,278 0.0% 0 0 0 0 0
74. Oak View II 152,366 5.1% 0 0 0 0 0
75. Oak View III 200,206 0 0 2.1% 4,641 0 0 0
76. Stonebridge I 143,496 0 0 0.0% 0 3,808 18,334 0
77. Stonebridge II 141,804 10,269 10,269 0.0% 0 0 0 0 26,783
78. Stonebridge III 158,410 3,008 3,008 0.0% 0 0 0 0 0
79. Southern Baptist H.M.B. 182,000 0 0 8.9% 0 0 0 0 0
80. The Avenue at Forsyth - Building 400 141,042 0 0 3.5% 0 0 0 0 0
81. The Falls at Sanctuary Park 228,629 0 0 18.7% 6,847 0 0 0 0
82. The Paddocks 12,509 12,509 23.1% (8,411) 0 0 0 0
83. The Park at Windward Concourse 97,017 8,093 8,093 22.6% 0 (2,368) 0
84. The Park at Windward Concourse 101,239 18,134 18,134 9.4% 5,297 (4,968) 1,596 0 6,847
85. Three Northwinds Center 100,364 23,397 23,397 17.8% 5,343 0 0 0 (9,183)
86. Two Northwinds Center 147,711 19,627 22,660 0.0% (14,405) 1,335 0 (4,968)
87. Verizon 146,252 13,878 13,878 17.4% 0 1,732 (5,360) 0
88. Westside Parkway Office Building 250,000 26,085 26,085 0.0% 0 0 0 0 (63)
89. ChoicePoint 0 0 18.0% 0 0 0 0 6,678
90. 800 North Point Pky 60,000 10,434 10,434 32.1% 35 0 0 0 (12,673)
91. 900 North Point Pky 200,000 0 0 7.8% 0 6,900 0 0
92. North Point Center East 171,176 30,820 30,820 10.2% 0 0 0 0 0
93. North Point Center East 129,642 0 41,660 3.3% (3,470) 3,209 0 0 0
94. Windward Concourse 152,000 11,890 11,890 0.0% 0 (2,265) 0 0
95. Windward Oaks I 130,000 13,300 13,300 99.8% 0 0 (41,660) 0 6,935
96. Windward Oaks II 102,569 3,386 3,386 5.6% 0 0 3,082 0 (41,660)
97. Windward Plaza - Building 100 0 0 0.0% 0 0 0 0 6,291
98. Windward Plaza - Building 300 58,658 76,365 76,365 39.2% 0 0 0 0 (5,735)
99. Windward Fairways I 76,555 0 7,400 20.1% 7,545 0 0 0 0
100. Windward Fairways II 132,250 0 0 45.8% (24,988) 4,078 0 0 0
101. Windward Pointe 200 203,248 52,956 52,956 (13,412) 10,002 0 0
135,000 28,336 28,336 18.5% (150) 0 0 0
Class A Market Totals 141,000 59,555 59,555 (14,975) (177) 0
130,000 0 11,446
0 (14,986)
14,284,456 (13,562)
2,565,012 2,644,982 92,975 221,346
299,346

© 2013 CoStar Realty Information, Inc. www.costar.com

Third Quarter 2013

Atlanta Office Market

NORTH FULTON - CLASS B

INVENTORY ANALYSIS

Deliveries vs Construction Starts

Delivered SF Const Starts Avg Del SF

1 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2013 2q 2013 3q
1
1
1
1
1
0
0
0
0
0

2010 3q

Source: CoStar Property•

Markets Ranked by Inventory Under Construction SF

Existing Inventory % of Class B 0.00
0.00
Market SF Rank Inventory Vacancy 0.00
Northwest Atlanta 0.00
Northeast Atlanta 14,712,321 1 17% 24.2% 0.00
Northlake 0.00
North Fulton 13,483,258 2 15% 24.4% 0.00
South Atlanta 0.00
Downtown Atlanta 12,408,495 3 17% 15.9% 0.00
Central Perimeter 0.00
Midtown Atlanta 9,243,380 4 16% 18.5% 0.00
Buckhead
West Atlanta 9,171,560 5 20% 12.8%

9,093,539 6 24% 9.2%

7,897,602 7 21% 27.0%

5,004,689 8 13% 17.5%

4,511,440 9 12% 15.9% 2010 2011 2011 2012 2012 2013 2013
3q 1q 3q 1q 3q 1q 3q
1,540,418 10 4% 8.0%

Source: CoStar Property• Source: CoStar Property•

Historical Analysis

Existing Inventory Vacancy Delivered Inventory UC Inventory Construction
% Total RBA Starts
Period # Bldgs Total RBA # Bldgs Total RBA Avg Bld # Bldgs Avg Bld
18.5% 0 0
2013 3q 214 9,243,380 18.6% 0 00 0 0 0 0
2013 2q 17.9% 0 0 0 0
2013 1q 214 9,243,380 18.5% 0 00 0 0 0 0
2012 4q 18.1% 0 0 0 0
2012 3q 214 9,243,380 18.9% 0 00 0 0 0 0
2012 2q 18.5% 0 0 0 0
2012 1q 214 9,243,380 20.2% 0 00 0 0 0 0
2011 4q 20.0% 0 0 0 0
2011 3q 214 9,243,380 20.7% 0 00 0 0 0 0
2011 2q 20.4% 0 0 0 0
2011 1q 214 9,243,380 21.3% 0 00 0 0 0 0
2010 4q 21.8% 0 0 0 0
2010 3q 214 9,243,380 22.2% 0 00 0 0 0 0
2010 2q 22.0% 0 0 0 0
2010 1q 214 9,243,380 0 00 0 0

214 9,243,380 0 00

214 9,243,380 0 00

214 9,243,380 0 00

214 9,243,380 0 00

214 9,243,380 0 00

214 9,243,380 0 00

214 9,243,380 0 00

Source: CoStar Property•

© 2013 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2013

Atlanta Office Market

NORTH FULTON - CLASS B

BUILDING ABSORPTION

All Buildings Included in Inventory

Vacant SF 2013 Net Absorption

Building Name RBA Direct SF Total SF Rate 1q 2q 3q 4q YTD

1. 01 Old Dawson Village Rd E 31,200 1,200 1,200 3.8% 0 0 0 0 0
2. 1000 Old Roswell Lakes Pky 18,000 0 0 0.0% 0 0 0 0 0
3. 1015 Windward Ridge 96,900 0 0 0.0% 0 0 0 0 0
4. 110 Founders Mill 20,706 0 0 0.0% 0 0 0 0 0
5. 11405 Old Roswell Rd 24,000 0 0 0.0% 0 0 0 0 0
6. 11600 Alpharetta Hwy 17,830 0 0 0.0% 0 0 0 0 0
7. 11975 Morris Rd 66,724 2.7% 0 (882) 3,436 0 2,554
8. 12550 Cingular Way 69,000 1,802 1,802 0.0% 0 0 0 0 0
9. 1300 Upper Hembree Rd - Bldg 100 16,000 0 0 0.0% 5,000 0 0 0 5,000
10. 1400 Northside Forsyth Dr 68,498 0 0 0.0% 0 0 0 0 0
11. 161 Kimball Bridge Rd 16,398 0 0 0.0% 7,692 0 0 0 7,692
12. 1775 Woodstock Rd 30,000 0 0 4.2% 0 0 0 0 0
13. 202 Tribble Gap Rd 21,769 0.0% 0 0 0 0 0
14. 217 Roswell St 16,189 1,271 1,271 92.7% 0 0 0 0 0
15. 2575 Peachtree Pky 18,000 0 0 33.3% 0 0 0 0 0
16. 3275 Marketplace Blvd - Bldg 100 24,000 0.0% 0 0 0 0 0
17. 3955 Johns Creek Ct 53,788 15,000 15,000 100.0% 0 0 0 0 0
18. 3965 Johns Creek Ct 53,788 6,000 6,000 100.0% 0 0 0 0 0
19. 3970 Johns Creek Ct 130,783 0 0 37.7% 0 (49,353) 0 0 (49,353)
20. 3975 Johns Creek Ct 42,661 0.0% 0 0 0 0 0
21. 400 Business Park - Bldg 400 30,441 53,788 53,788 62.5% 0 0 0 0 0
22. 400 North Business Park - Bldg 200 39,587 53,788 53,788 38.0% 0 0 0 0 0
23. 400 North Business Park - Bldg 300 15,728 49,353 49,353 100.0% 0 0 0 0 0
24. 4100 Old Milton Pky 41,358 0.0% 0 0 0 0 0
25. 4300 North Point Pky 60,795 0 0 6.4% 0 0 (3,871) 0 (3,871)
26. 4330 Johns Creek Pky 20,573 19,037 19,037 25.1% 0 0 3,327 0 3,327
27. 4375 Johns Creek Pky 16,613 15,055 15,055 0.0% 0 0 0 0 0
28. 515 Atlanta Rd 24,011 15,728 15,728 0.0% 0 0 0 0 0
29. 5555 Windward Pky W 515,000 0.0% 0 0 0 0 0
30. 5955 State Bridge Rd 78,190 0 0 11.5% 0 0 0 0 0
31. 601 N Main St 19,668 3,871 3,871 24.4% 0 0 0 0 0
32. 634 Peachtree Pky 18,704 5,173 5,173 0.0% 0 0 0 0 0
33. 6505 Shiloh Rd 38,232 40.4% 0 0 0 0 0
34. 765 Lanier 400 Pky 16,000 0 0 50.0% 0 0 0 0 0
35. 780 Old Roswell Pl 22,780 0 0 0.0% 0 0 6,530 0 6,530
36. 900 Old Roswell Lakes Pky 26,490 0 0 6.3% 840 0 840 0 1,680
37. 9005 Westside Pky 50,933 8,980 8,980 0.0% 0 0 0 0 0
38. 918 Holcomb Bridge Rd 18,300 4,800 4,800 74.4% 0 0 0 0 0
39. 925 Woodstock Rd 30,000 0 0 25.0% 0 0 0 0 0
40. McGinnis Ferry Road Medical & Office Center 34,950 15,440 15,440 0.0% 0 0 0 0 0
41. Bank of North Georgia 40,000 8,000 8,000 0.0% 0 0 0 0 0
42. Bluegrass Promenade 93,963 0 0 26.7% 0 0 0 0 0
43. 1525 Bluegrass Lakes Pky 56,518 1,680 1,680 0.0% 0 0 0 0 0
44. Brookside 300 101,462 0 0 12.1% (8,827) 0 0 0 (8,827)
45. Brookside 500 43,717 13,609 13,609 56.9% 0 0 0 0 0
46. Brookside 600 34,616 7,500 7,500 36.1% 0 2,973 0 0 2,973
47. Brookside 700 40,580 0 0 14.0% (373) 0 0 0 (373)
48. Brookside 800 36,556 0 0 0.0% 0 0 0 0 0
49. Brookside Court 42,992 25,047 25,047 36.1% (2,552) 6,720 (5,925) 0 (1,757)
50. Radiant I 106,631 0 0 0.0% 0 0 0 0 0
51. Radiant II 80,314 12,324 12,324 0.0% 0 0 0 0 0
52. Campground Center - Building 1 22,000 24,868 24,868 33.9% 0 0 0 0 0
53. Canton Oaks 15,582 12,504 12,504 0.0% (920) 0 920 0 0
54. Centre Court 18,900 5,701 5,701 0.0% 0 0 0 0 0
55. Chatham Centre 27,200 0 0 0.0% 0 0 0 0 0
56. Colonial Park Commons 18,437 15,531 15,531 13.4% 1,500 0 (2,475) 0 (975)
57. 284 S Main St 15,800 0 0 10.6% 1,375 (1,680) 0 0 (305)
58. Colony Park Bldg 284 15,000 0 0 0.0% 0 0 0 0 0
59. R.L. McGuinn Bldg 27,000 7,455 7,455 0.0% 3,500 0 0 0 3,500
60. Corporate Center II 35,000 0 0 0.0% 0 0 0 0 0
61. 6553 Shiloh Rd 97,168 0 0 0.0% 0 0 0 0 0
62. Crabapple W Office Park - Phase II 17,250 0 0 0.0% 0 0 0 0 0
63. Crosspointe 30,726 2,475 2,475 7.7% 0 0 1,242 0 1,242
64. Dawsonville Professional Center 15,000 1,680 1,680 50.0% 0 0 0 0 0
65. Deerfield Park - Bldg 100 49,577 0 0 0.0% 0 0 0 0 0
66. Deerfield Park - Bldg 200 67,207 0 0 0.0% 0 0 0 0 0
0 0
0 0
0 0
2,380 2,380
7,500 7,500
0 0
0 0

© 2013 CoStar Realty Information, Inc. www.costar.com

Third Quarter 2013

Atlanta Office Market

NORTH FULTON - CLASS B

BUILDING ABSORPTION

All Buildings Included in Inventory

Vacant SF 2013 Net Absorption

Building Name RBA Direct SF Total SF Rate 1q 2q 3q 4q YTD

67. Deerfield Park - Bldg 300 53,615 0 0 0.0% 0 0 0 0 0
68. Dominion Court Office Park (Jefferson Bldg) 27,500 6,480 6,480 23.6% 0 (1,380) 0 0 (1,380)
69. Founders Park I 112,559 48,701 48,701 43.3% 5,791 (3,240) 0 2,551
70. Founders Park II 89,618 19,544 19,544 21.8% 0 0 0 0
71. Fulton Medical Plaza 32,541 8,532 8,532 26.2% 2,234 0 0 0 0
72. 9420 Willeo Rd 21,540 5,960 5,960 27.7% 0 0 0 0 2,234
73. Gates at Laurel Springs - Bldg 100 17,800 1,529 1,529 (1,570) 0 2,062 0
74. Gates at Laurel Springs - Bldg 1300 17,350 8.6% 0 0 0 0 0
75. Georgia Power 18,000 0 0 0.0% 0 0 0 0 492
76. Great Oaks Center - Bldg. A 33,224 0 0 0.0% 0 0 0 0
77. Great Oaks Center - Bldg. B 58,871 0 0 0.0% 0 0 0 0 0
78. Great Oaks Center - Bldg. C 65,807 45,953 45,953 78.1% 0 (22,828) 0 0 0
79. Great Oaks Center - Bldg. E 77,322 0 0 0.0% 0 0 0 0 0
80. Great Oaks Way 60,000 0 0 0.0% 0 0 0 0 (22,828)
81. Grimes Bridge Park 28,630 0 0 0.0% 0 0 0 0 0
82. 1360 Upper Hembree Rd 28,205 0 0 0.0% 0 0 0 0 0
83. 200 Hembree Park Dr 43,559 2,713 2,713 9.6% 0 (2,713) 0 0 0
84. Heritage Commons Condominiums - Building A 25,456 6,205 6,205 14.2% 3,266 0 (49) 0 0
85. Heritage Square 29,028 5,055 5,055 19.9% 433 (1,636) (667) 0 (2,713)
86. Heritage Walk 19,042 667 667 2.3% (100) 1,767 (2,500) 0 0
87. Holcomb Woods 20,303 4,850 4,850 25.5% 0 1,397 3,479 0 1,581
88. Innova Center 21,000 3,293 3,293 16.2% 0 1,894 0 0 1,533
89. 10475 Medlock Bridge Rd 27,058 11,150 11,150 53.1% 0 0 0 0 (1,203)
90. Ivy Falls - Building 500 22,597 0 0 0.0% 1,500 0 0 0 5,373
91. Medlock Bridge Rd 27,500 0 0 0.0% 0 3,298 0 0 0
92. 5000 Research Ct 35,167 0 0 0.0% 0 0 0 0 0
93. 5050 Research Ct 42,661 1,202 1,202 3.4% 0 0 0 0 4,798
94. Johns Creek - Bldg 1 49,333 8,884 8,884 20.8% 7,200 0 0 0 0
95. Johns Creek - Bldg 11445 40,000 0 0 0.0% 0 0 0 0 0
96. Johns Creek - Bldg 11450 144,647 0 0 0.0% 0 0 0 0 0
97. Johns Creek - Lakeside One 49,963 144,647 144,647 100.0% 0 0 0 0 7,200
98. Northside Medical Office Bldg 52,090 0 0 0.0% 0 0 4,704 0 0
99. WH Bass 17,100 14,994 14,994 28.8% 0 1,375 0 0 0
100. 11925 Jones Bridge Rd 15,000 4,854 4,854 28.4% 538 0 0 0 0
101. 1400 Holcomb Bridge Rd 100,397 6,300 6,300 42.0% 0 0 0 0 6,079
102. 1400 Holcomb Bridge Rd 73,699 0 0 0.0% 0 0 0 0 0
103. 1400 Holcomb Bridge Rd 15,943 0 0 0.0% 0 0 0 0 538
104. 1400 Holcomb Bridge Rd 20,245 0 0 0.0% 0 0 0 0 0
105. Kings Landing 75,843 0 0 0.0% 0 0 0 0 0
106. KM Building 37,318 44,157 44,157 58.2% 0 (10,626) 0 0 0
107. Lake at Northpoint 44,960 0 0 0.0% 0 0 37 0 0
108. Lake at Northpoint Park - Bldg I 22,000 25,539 25,539 56.8% 0 0 3,127 0 (10,626)
109. Lake Point Professional 24,000 0 0 0.0% 0 0 0 0 0
110. Lakeview 400 Office Park - Bldg 100 45,442 8,745 8,745 36.4% 0 0 0 0 37
111. Lakeview 400 Office Park - Bldg 200 89,719 0 0 0.0% 0 0 0 0 3,127
112. Lakeview 400 Phase II 64,904 15,003 15,003 16.7% 0 0 0 0 0
113. Main St. Bank Bldg 17,280 0 0 0.0% 0 0 5,998 0 0
114. 1055 Powers Pl 43,440 0 0 0.0% 0 0 0 0 0
115. Main Street Walk - Bldg 200 16,688 0 0 0.0% 420 1,316 0 0 0
116. Mansell Court - Bldg 30 28,478 7,230 7,230 43.3% 0 3,000 0 0 5,998
117. Mansell Court - Bldg 70 34,174 3,751 3,751 13.2% 0 0 0 0 1,316
118. Mansell Plaza 18,575 2,113 2,113 6.2% 0 0 0 0 3,420
119. Mansell Forest 52,676 0 0 0.0% 0 0 0 0 0
120. Woodside Center 100 39,200 0 0 0.0% 0 1,134 0 0 0
121. Woodside Center 200 36,788 21,200 21,200 54.1% 360 0 0 0 0
122. Woodside Center 300 39,839 19,481 19,481 53.0% (8,470) 0 0 0 1,134
123. 675 Mansell Rd 34,896 8,470 8,470 21.3% 0 3,998 5,982 0 0
124. 695 Mansell Rd 33,283 5,518 5,518 15.8% 0 0 0 0 360
125. ExecuCourt 24,514 26,332 26,332 79.1% 0 0 0 0 (4,472)
126. Morningside Forest 22,600 0 0 0.0% 0 0 0 0 5,982
127. North Fulton Executive Center - Bldg D 36,000 0 0 0.0% 0 0 (964) 0 0
128. North Fulton Medical Arts Center 58,432 964 964 2.7% (3,860) 0 2,039 0 0
129. North Fulton Professional Building 92,179 21,780 21,780 37.3% (1,247) 3,661 0 0 0
130. 11545 Wills Rd 71,140 28,573 28,573 31.0% 0 (610) 0 0 (964)
131. 1400 Hembree Rd 34,615 0 0 0.0% 0 0 0 0 1,840
132. Children`s Healthcare 15,000 0 0 0.0% 0 0 0 0 (1,857)
15,000 15,000 100.0% 0 0
0
0

© 2013 CoStar Realty Information, Inc. www.costar.com

Third Quarter 2013

Atlanta Office Market

NORTH FULTON - CLASS B

BUILDING ABSORPTION

All Buildings Included in Inventory

Vacant SF 2013 Net Absorption

Building Name RBA Direct SF Total SF Rate 1q 2q 3q 4q YTD

133. Northmeadow Service Center V 38,845 0 0 0.0% 0 0 0 0 0
134. Northmeadow Medical Center 51,539 5,252 5,252 10.2% 7,291 0 0 0 7,291
135. Northside Hospital Dawsonville 34,200 17,133 17,133 50.1% 0 (2,990) 0 (2,990)
136. Northwinds - Devry 64,981 0 0 0 0
137. Northwinds Summit 20,132 0 0 0.0% 0 0 0 0 0
138. Northwoods Surgery Center 35,604 20,000 20,000 99.3% 0 776 2 0 0
139. Abbotts Bridge Office 68,888 34,826 34,826 97.8% 0 7,962 (7,187) 0 778
140. 1100 Old Ellis Rd 28,750 26,576 26,576 38.6% (242) 0 0 0 533
141. Old Milton Professional Park 25,000 0 0 0 0 0
142. Old Roswell Lakes 17,100 0 0 0.0% 0 1,650 0 0 0
143. Olde Alabama Commons - Bldg 600 15,000 0 0 0.0% (825) 0 0 0 825
144. Olde Alabama Commons - Bldg 700 15,000 2,450 2,450 14.3% 0 0 0 0 0
145. Oxford Lake Business Ctr - Bldg 100 49,228 0 0 0.0% 1,180 0 0 0 1,180
146. Oxford Lake Business Ctr - Building 200 53,324 0 0 0.0% 0 0 (21,302) 0 0
147. Park Plaza 30,000 0 0 0.0% 5,551 0 0 0 (15,751)
148. Parkway 400 - Building One 49,544 35,630 41,495 77.8% 0 0 1,023 0 0
149. Parsons Meadow Prof Park - Bldg 1 18,604 0 0 0.0% (14,648) 0 0 0 (13,625)
150. Parson Meadow 32,000 16,167 16,167 32.6% 0 0 1,279 0 0
151. Parson Meadow 18,872 0 0 0.0% 0 0 4,053 0 1,279
152. Pavilion Center 44,864 12,751 12,751 39.8% 0 (5,641) 2,999 0 4,053
153. 610 Peachtree Pky 18,000 0 0 0.0% (3,916) 0 0 0 (6,558)
154. Pediatrics Center Of Johns Creek 16,000 15,658 15,658 34.9% 0 0 0 0 0
155. 6525 Shiloh Rd 42,000 0 0 0.0% 0 (4,721) 0 0 0
156. Point Corporate Business Condos - Bldg A2 31,626 0 0 0.0% 0 0 (1,849) 0 (4,721)
157. Point Corporate Business Condos - Bldg A3 35,854 15,838 15,838 37.7% 0 8,692 0 0 (1,849)
158. Preston Ridge Commons - Phase I Bldg A 22,000 5,560 5,560 17.6% 0 0 0 0 8,692
159. Preston Ridge Commons - Phase I Bldg D 15,000 9,082 9,082 25.3% 0 0 0 0 0
160. Rolta Bldg 25,599 0 0 0.0% 0 0 0 0 0
161. Roswell Business Center - Bldg 700 39,240 7,000 7,000 46.7% 0 0 0 0 0
162. Roswell Medical Center 45,392 0 0 0.0% (3,116) 0 0 0 (3,116)
163. Roswell Mill - Bldg A 48,751 24,097 24,097 61.4% 0 0 0 0 0
164. Roswell Office Suites 28,000 0 0 0.0% 0 0 14,000 0 0
165. Roswell Summit - 100 63,604 0 0 0.0% 0 0 0 0 14,000
166. Roswell Summit - 200 63,738 0 0 0.0% (5,875) (7,676) 0 0 (5,875)
167. 3050 Royal Blvd S 28,512 34,468 34,468 54.2% 7,690 1,291 0 0 14
168. 3100 Royal Blvd S 15,000 29,793 29,793 46.7% 0 0 0 0 1,291
169. Royal 400 - Bldg 100 46,064 0 0 0.0% 0 0 14 0 0
170. Royal 400 - Bldg 200 51,986 0 0 0.0% 0 62 821 0 14
171. Royal 400 - Bldg 300 46,064 0 17,500 38.0% 0 0 0 0 883
172. Comcast 108,512 5,716 5,716 11.0% (2,899) 0 0 0 (2,899)
173. One Point Royal 145,008 11,608 11,608 25.2% 0 1,710 0 0 0
174. Royal Forest 100 15,000 0 0 0.0% 0 0 0 0 1,710
175. Royal Forest 200 27,107 77,708 77,708 53.6% 0 (3,938) 0 0 0
176. Royal Professional Bldg 24,990 0 0 0.0% 0 0 0 0 (3,938)
177. Royal 400 Phase II 31,840 3,938 3,938 14.5% 0 0 (4,246) 0 0
178. Rubicon Investments, LLC 70,000 2,855 2,855 11.4% 0 0 0 0 (4,246)
179. Rubicon Investments, LLC 20,000 22,696 22,696 71.3% 0 0 0 0 0
180. Saddlebrook Office Park 23,360 0 0 0.0% 0 0 0 0 0
181. 110 Samaritan Dr 26,400 0 0 0.0% 0 0 0 0 0
182. Southbridge Office Building 15,625 3,652 3,652 15.6% 0 0 0 0 0
183. State Bridge Exchange 30,070 20,900 20,900 79.2% 0 0 0 0 0
184. The Bradstone 19,404 4,551 4,551 29.1% 5,000 (1,121) 1,159 0 5,000
185. The Gates @ McGinnis Ferry - Bldg 300 - Phase I 15,000 10,000 10,000 33.3% (2,318) 0 (2,500) 0 (2,280)
186. The Gates at North Point - Bldg 100 17,350 3,589 3,589 18.5% 0 0 0 0 (2,500)
187. The Gates at Noth Point - Bldg 200 17,350 5,000 5,000 33.3% 0 0 0 0 0
188. The MacMaster Bldg 16,000 0 0 0.0% 0 0 0 0 0
189. The MacMaster Bldg Phase II 16,000 6,759 6,759 39.0% 0 0 0 0 0
190. Corporate Campus - Bldg 1 56,198 2,569 2,569 16.1% 0 (15,000) 0 0 0
191. Corporate Campus - Phase 2 53,280 4,650 4,650 29.1% 56,198 0 0 0 41,198
192. Meadows III 101,120 15,000 15,000 26.7% 0 0 0 0 0
193. Meadows Pavilion - Phase I 31,105 12,778 12,778 24.0% 0 0 0 0 0
194. Meadows Pavilion - Phase II 31,416 47,079 47,079 46.6% 0 0 0 0 0
195. Meadows Summit - 6250 Shiloh Road 72,000 9,498 9,498 30.5% 0 0 3,667 0 0
196. The Meadows at Bluegrass 45,000 3,010 3,010 9.6% (9,740) 0 0 0 (6,073)
197. The Offices at the Meadows 34,064 0 11,990 16.7% 0 0 0 0 0
198. The Perimeter Group 21,595 0 0 0.0% 0 0 0 0 0
14,202 14,202 41.7% 0 0
0 0 0.0%

© 2013 CoStar Realty Information, Inc. www.costar.com

Third Quarter 2013

Atlanta Office Market

NORTH FULTON - CLASS B

BUILDING ABSORPTION

All Buildings Included in Inventory

Vacant SF 2013 Net Absorption

Building Name RBA Direct SF Total SF Rate 1q 2q 3q 4q YTD
0.0% 0 0 0
199. 12385 Crabapple Rd 15,120 0 0 0 0 0
200. The Swan Bldg 44,123 12,094 12,094 27.4% 3,939 0 0 0 3,939
201. 1000 Alderman Dr 207,000 0.0% 0 0 0 0 0
202. 1121 Alderman Dr 28,745 0 0 5,650 2,050 0
203. Marconi Forest 200 25,000 3,720 3,720 12.9% (4,450) 0 0 0 3,250
204. Parkway Forest 55,626 0.0% 0 0 0 0 0
205. Windward - River Island 26,483 0 0 9.1% 0 0 0
206. Windward Business Center 18,300 5,065 5,065 0.0% 1,473 0 (404) 0 1,473
207. 500 North Point Pky 141,091 0 0 0 0 0
208. 600 North Point Pky 57,800 0 0 16.1% 0 0 0 0
209. Windward Forest 66,968 2,950 2,950 0.0% 0 2,781 (4,405) 0 (404)
210. Windward Forest Phase II - Bldg 200 33,000 0.0% 0 0 0 0 0
211. Windward Park 49,657 0 0 0 0 2,193 0 0
212. Windward Ridge 70,400 0 0 10.4% 0 0 0 0
213. Windward Ridge 500 18,000 6,966 6,966 11.2% 0 0 0 0 (1,624)
214. Woodside Exchange 15,232 3,710 3,710 26.2% 0 0 0 0
12,991 12,991 0 0
Class B Market Totals 9,243,380 0 0 0.0% 0 2,193
4,500 4,500 25.0% 0
0 0 54,023 0
0.0% 0
1,675,944 1,711,299 (66,698) 12,409
18.5% (266)

© 2013 CoStar Realty Information, Inc. www.costar.com

Third Quarter 2013

Atlanta Office Market

NORTH FULTON - CLASS C

INVENTORY ANALYSIS

Deliveries vs Construction Starts

Delivered SF Const Starts Avg Del SF

1 2010 4q 2011 1q 2011 2q 2011 3q 2011 4q 2012 1q 2012 2q 2012 3q 2012 4q 2013 1q 2013 2q 2013 3q
1
1
1
1
1
0
0
0
0
0

2010 3q

Source: CoStar Property•

Markets Ranked by Inventory Under Construction SF

Existing Inventory % of Class C 0.00
Inventory Vacancy 0.00
Market SF Rank 0.00
Downtown Atlanta 0.00
Northlake 3,500,968 1 20% 19.5% 0.00
South Atlanta 0.00
Northwest Atlanta 3,435,436 2 20% 8.6% 0.00
Northeast Atlanta 0.00
West Atlanta 2,258,251 3 16% 21.3% 0.00
Central Perimeter 0.00
North Fulton 1,860,044 4 18% 10.4% 0.00
Midtown Atlanta
Buckhead 1,712,053 5 21% 9.4%

1,659,585 6 26% 41.5%

1,145,177 7 21% 29.0%

690,569 8 15% 6.1%

689,989 9 17% 6.3% 2010 2011 2011 2012 2012 2013 2013
3q 1q 3q 1q 3q 1q 3q
565,676 10 14% 13.3%

Source: CoStar Property• Source: CoStar Property•

Historical Analysis

Existing Inventory Vacancy Delivered Inventory UC Inventory Construction
% Total RBA Starts
Period # Bldgs Total RBA # Bldgs Total RBA Avg Bld # Bldgs Avg Bld
6.1% 0 0
2013 3q 26 690,569 5.6% 0 00 0 0 0 0
2013 2q 4.6% 0 0 0 0
2013 1q 26 690,569 3.0% 0 00 0 0 0 0
2012 4q 3.0% 0 0 0 0
2012 3q 26 690,569 3.2% 0 00 0 0 0 0
2012 2q 3.6% 0 0 0 0
2012 1q 26 690,569 3.1% 0 00 0 0 0 0
2011 4q 3.3% 0 0 0 0
2011 3q 26 690,569 3.9% 0 00 0 0 0 0
2011 2q 4.1% 0 0 0 0
2011 1q 26 690,569 3.5% 0 00 0 0 0 0
2010 4q 4.3% 0 0 0 0
2010 3q 26 690,569 2.8% 0 00 0 0 0 0
2010 2q 3.9% 0 0 0 0
2010 1q 26 690,569 0 00 0 0

26 690,569 0 00

26 690,569 0 00

26 690,569 0 00

26 690,569 0 00

26 690,569 0 00

26 690,569 0 00

26 690,569 0 00

Source: CoStar Property•

© 2013 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2013

Atlanta Office Market

NORTH FULTON - CLASS C

BUILDING ABSORPTION

All Buildings Included in Inventory

Vacant SF 2013 Net Absorption

Building Name RBA Direct SF Total SF Rate 1q 2q 3q 4q YTD
0.0% 0 0 0
1. 1010 Mansell Ct 54,798 0 0 0.0% 0 0 0 0 0
2. 1020 Mansell Ct 57,180 0 0 0.0% 0 0 0 0 0
3. 1300 Northside Forsyth Dr 16,669 0 0 0.0% 0 0 0 0 0
4. 1305 Warsaw Rd 34,174 0 0 0.0% 0 0 0 0 0
5. 154 Kimball Bridge Rd 28,816 0 0 0 0 0
6. 205 Market Pl 18,000 7,400 7,400 41.1% (8,866) 1,466 0 0 (7,400)
7. 318 Tribble Gap Rd 17,041 0 0 0.0% 0 0 0 0 0
8. 3921 Johns Creek Ct 19,494 0 0 0.0% 0 0 0 0 0
9. 543 Atlanta Rd 25,619 0 0 0.0% 0 0 0 0 0
10. 580 Atlanta Rd 42,207 0 0 0.0% 0 0 0 0 0
11. 5983 Highway 53 E 18,000 8,382 8,382 0 0 0
12. 6490 Shiloh Rd 40,177 0 0 46.6% (2,082) 0 0 0 (2,082)
13. 800 Old Dawson Village Rd E 30,000 2,400 2,400 0.0% 0 0 0 0 0
14. 925 Sanders Rd 17,138 3,600 3,600 8.0% 0 0 0 0 0
15. Colonial Park Commons 2 20,000 0 0 0 0 0 0 0
16. 150 Hembree Park Dr 44,343 0 0 21.0% 0 0 0 0 0
17. Hembree Professional Bldg - A 17,000 4,224 4,224 0.0% 0 (4,224) 0 0 0
18. Hembree Professional Bldg - B 21,000 4,680 4,680 0.0% 0 (4,680) 0 0
19. Market Place 16,000 3,500 3,500 0 1,000 (1,000) 0 (4,224)
20. North Fulton Professional Center 15,839 720 720 24.8% 0 0 0 (4,680)
21. 770 Old Roswell Pl 34,392 0 0 22.3% (1,500) 0 0 0 (1,500)
22. Old Roswell Professional Center 15,700 5,460 5,460 21.9% 1,404 0 (2,360) 0 1,404
23. Roswell Professional Center - Building D 16,997 1,433 1,433 0 0 0
24. The Meadows at Bluegrass 26,040 0 0 4.5% 0 0 0 0 0
25. 5000 McGinnis Ferry Rd 20,000 0 0 0.0% (500) 0 0 0 (2,860)
26. 4895 Windward Pky 23,945 0 0 34.8% 0 0
8.4% 0 0 0
Class C Market Totals 690,569 41,799 41,799 0.0% 0 (6,438) (3,360) 0
0.0% 0 0
0.0% 0 0

6.1% (11,544) (21,342)

© 2013 CoStar Realty Information, Inc. www.costar.com

TenantInventory

THIRD-QUARTER 2013

The North Fulton Office Market

Third Quarter 2013

Atlanta Office Market

NORTH FULTON

TENANT ANALYSIS

Firms by Size Range Lease Expirations

Up to 2,499 SF 200 400 600 800 1,000 1,200 1,400 2013 200 400 600 800 1,000 1,200
2,500-4,999 SF 2014
5,000-9,999 SF 2015
10,000-24,999 SF 2016
25,000-49,999 SF 2017
50,000-74,999 SF 2018
75,000 SF & Up 2019

0 0

Size Ranges Firms SF Year Firms SF Expiring
Up to 2,499 SF 2013
2,500-4,999 SF 1,306 1,559,524 2014 42 247,650
5,000-9,999 SF 611 2,058,089 2015 142 1,088,275
10,000-24,999 SF 385 2,621,533 2016 148 1,023,348
25,000-49,999 SF 247 3,731,248 2017 99 952,518
50,000-74,999 SF 87 2,833,965 2018 63 665,116
75,000 SF & Up 26 1,559,981 2019 42 609,225
43 6,807,000 23 297,739
Source: CoStar Tenant® Source: CoStar Tenant®

Breakdown by Industry Group SF/Employee by Industry Group

Finance/Ins/RE 1,000 1,500 2,000 2,500 3,000 Transportation 200 400 600 800 1,000 1,200 1,400 1,600
Business-Service Medical

Manufacturing Law Firms
Retailers/Wholes Manufacturing

Services Services
Finance/Ins/RE
Medical Engineers/Archit
Communications Agri/Mining/Util

Transportation Accountants
Agri/Mining/Util Retailers/Wholes
Engineers/Archit Communications
Business-Service
Law Firms
Accountants Government
Government 0

0 500 Firms SF Avg SF Industry Groups SF

Industry Groups 190 2,452,876 12,910 Transportation 1,521
Finance/Ins/RE 232 2,305,144 9,936 Medical 392
Business-Service 1,583,939 Law Firms 388
Manufacturing 60 1,190,387 26,399 Manufacturing 356
Retailers/Wholes 95 12,530 Services 321
Services 86 839,454 Finance/Ins/RE 292
Medical 164 638,486 9,761 Engineers/Archit 276
Communications 14 461,616 3,893 Agri/Mining/Util 273
Transportation 13 400,127 32,973 Accountants 266
Agri/Mining/Util 39 327,057 30,779 Retailers/Wholes 261
Engineers/Archit 27 137,185 8,386 Communications 261
Law Firms 27 5,081 Business-Service 228
Accountants 28 86,525 3,205 Government 0
Government 78,849 2,816
0 Source: CoStar Tenant®
Source: CoStar Tenant® 0 0

© 2013 CoStar Realty Information, Inc The CoStar Office Report www.costar.com

FiguresataGlance

THIRD-QUARTER 2013

The North Fulton Office Market

Third Quarter 2013

Atlanta Office Market

NORTH FULTON

HISTORICAL FIGURES AT A GLANCE

Class A Market Historical Statistics Third Quarter 2013

Existing Inventory Vacancy Net Deliveries UC Inventory Quoted

Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates

2013 101 14,284,456 2,565,012 2,644,982 18.5% 299,346 00 0 0 $20.24
2012 101 14,284,456 2,846,436 2,944,328 20.6% (220,620) 1 52,000 0 0 $19.72
2011 100 14,232,456 2,461,301 2,671,708 18.8% (100,721) 00 1 52,000 $19.87
2010 100 14,232,456 2,110,217 2,570,987 18.1% 00 0 0 $19.41
2009 100 14,232,456 2,087,467 2,479,175 17.4% (91,812) 1 101,991 0 0 $20.03
2008 14,130,465 2,184,313 2,487,187 17.6% 110,003 6 839,264 1 101,991 $20.87
2007 99 13,291,201 1,915,402 1,999,304 15.0% 351,381 5 471,075 6 839,264 $20.38
2006 93 12,820,126 1,865,225 2,057,399 16.0% 529,170 2 296,496 6 629,485 $19.21
2005 88 12,523,630 2,195,018 2,410,719 19.2% 649,816 00 4 549,739 $18.23
2004 86 12,523,630 2,028,706 2,497,926 19.9% 00 0 0 $17.90
2003 86 12,523,630 2,420,956 3,041,543 24.3% 87,207 2 428,629 0 0 $17.87
2002 86 12,095,001 2,052,165 3,117,852 25.8% 543,617 00 2 428,629 $18.93
2001 84 12,095,001 2,148,225 2,850,457 23.6% 504,938 20 2,870,382 0 0 $20.33
2000 84 10.5% (267,395) 12 1,805,355 20 2,870,382 $21.89
1999 64 9,224,619 708,267 964,045 12.0% 983,970 11 1,891,825 12 1,805,355 $20.83
1998 52 7,419,264 711,404 889,875 16.0% 1,731,185 12 1,713,789 9 1,665,141 $20.99
41 5,527,439 887,054 887,054 1,889,004
1,904,858

Source: CoStar Property®

Class B Market Historical Statistics Third Quarter 2013

Existing Inventory Vacancy Net Deliveries UC Inventory Quoted

Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates

2013 214 9,243,380 1,675,944 1,711,299 18.5% (266) 0 0 0 0 $15.37
2012 214 9,243,380 1,697,928 1,711,033 18.5% 159,500 0 0 0 0 $14.83
2011 214 9,243,380 1,844,613 1,870,533 20.2% 0 0 0 0 $15.20
2010 214 9,243,380 1,891,318 1,964,242 21.3% 93,709 0 0 0 0 $15.48
2009 214 9,243,380 1,840,148 1,986,078 21.5% 21,836 6 120,379 0 0 $15.74
2008 208 9,123,001 1,420,504 1,523,681 16.7% (342,018) 9 214,052 4 79,782 $16.84
2007 199 8,908,949 1,283,586 1,404,957 15.8% 95,328 9 187,836 9 216,834 $15.96
2006 190 8,721,113 1,152,594 1,240,296 14.2% 23,175 10 271,829 9 194,295 $15.14
2005 180 8,449,284 1,329,486 1,507,284 17.8% 538,817 7 300,369 5 137,351 $15.63
2004 173 8,148,915 1,277,149 1,414,920 17.4% 208,005 6 138,613 7 285,551 $15.48
2003 167 8,010,302 1,377,953 1,629,349 20.3% 353,042 4 120,430 6 142,745 $15.23
2002 163 7,889,872 1,325,046 1,567,811 19.9% 58,892 5 91,986 5 140,562 $15.98
2001 158 7,797,886 1,382,190 1,625,326 20.8% 149,501 16 808,267 7 130,118 $17.12
2000 142 6,989,619 12.9% 84,132 22 801,102 16 732,511 $16.79
1999 120 6,188,517 753,346 901,191 15.3% 849,540 28 1,495,403 20 613,669 $17.42
1998 4,693,114 696,582 949,629 932,547 18 857,448 26 1,269,471 $17.44
92 386,773 386,773 8.2% 908,879

Source: CoStar Property®

Class C Market Historical Statistics Third Quarter 2013

Existing Inventory Vacancy Net Deliveries UC Inventory Quoted

Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates

2013 26 690,569 41,799 41,799 6.1% (21,342) 0 0 0 0 $14.28
2012 26 690,569 20,457 20,457 3.0% 1,100 0 0 0 0 $12.11
2011 26 690,569 21,557 21,557 3.1% 2,283 0 0 0 0 $13.72
2010 26 690,569 23,840 23,840 3.5% 558 0 0 0 0 $15.12
2009 26 690,569 24,398 24,398 3.5% (5,887) 0 0 0 0 $16.36
2008 26 690,569 18,511 18,511 2.7% 7,978 0 0 0 0 $18.97
2007 26 690,569 26,489 26,489 3.8% 0 0 0 0 $12.38
2006 26 690,569 65,851 65,851 9.5% 39,362 0 0 0 0 $10.88
2005 26 690,569 67,625 93,665 13.6% 27,814 0 0 0 0 $11.31
2004 26 690,569 64,909 64,909 9.4% (28,756) 2 78,743 0 0 $12.02
2003 24 611,826 64,419 64,419 10.5% 78,253 0 0 1 54,798
2002 24 611,826 83,338 83,338 13.6% 18,919 1 19,494 0 0 $9.81
2001 23 592,332 83,977 132,297 22.3% 68,453 0 0 1 19,494 $11.09
2000 23 592,332 70,047 70,047 11.8% (62,250) 1 17,138 0 0 $11.28
1999 22 575,194 25,876 25,876 4.5% (27,033) 1 20,000 1 17,138 $11.54
1998 21 555,194 20,804 20,804 3.7% 14,928 1 26,040 1 20,000 $10.73
26,040 $10.58

Source: CoStar Property®

© 2013 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2013

Atlanta Office Market

NORTH FULTON

HISTORICAL FIGURES AT A GLANCE

Class A&B Market Historical Statistics Third Quarter 2013

Existing Inventory Vacancy Net Deliveries UC Inventory Quoted

Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates

2013 315 23,527,836 4,240,956 4,356,281 18.5% 299,080 00 0 0 $18.42
2012 315 23,527,836 4,544,364 4,655,361 19.8% (61,120) 1 52,000 0 0 $17.99
2011 314 23,475,836 4,305,914 4,542,241 19.3% 00 1 52,000 $18.24
2010 314 23,475,836 4,001,535 4,535,229 19.3% (7,012) 00 0 0 $18.02
2009 314 23,475,836 3,927,615 4,465,253 19.0% (69,976) 7 222,370 0 0 $18.32
2008 307 23,253,466 3,604,817 4,010,868 17.2% (232,015) 15 1,053,316 5 181,773 $19.05
2007 292 22,200,150 3,198,988 3,404,261 15.3% 446,709 14 658,911 15 1,056,098 $18.45
2006 278 21,541,239 3,017,819 3,297,695 15.3% 552,345 12 568,325 15 823,780 $17.66
2005 266 20,972,914 3,524,504 3,918,003 18.7% 1,188,633 7 300,369 9 687,090 $17.21
2004 259 20,672,545 3,305,855 3,912,846 18.9% 295,212 6 138,613 7 285,551 $16.87
2003 253 20,533,932 3,798,909 4,670,892 22.7% 896,659 6 549,059 6 142,745 $16.89
2002 247 19,984,873 3,377,211 4,685,663 23.4% 563,830 5 91,986 7 569,191 $17.87
2001 242 19,892,887 3,530,415 4,475,783 22.5% (117,894) 36 3,678,649 7 130,118 $19.03
2000 206 16,214,238 1,461,613 1,865,236 11.5% 1,068,102 34 2,606,457 36 3,602,893 $19.88
1999 172 13,607,781 1,407,986 1,839,504 13.5% 2,580,725 39 3,387,228 32 2,419,024 $19.61
1998 133 10,220,553 1,273,827 1,273,827 12.5% 2,821,551 30 2,571,237 35 2,934,612 $19.42
2,813,737

Source: CoStar Property®

Class A,B&C Market Historical Statistics Third Quarter 2013

Existing Inventory Vacancy Net Deliveries UC Inventory Quoted

Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates

2013 341 24,218,405 4,282,755 4,398,080 18.2% 277,738 0 0 0 0 $18.39
2012 341 24,218,405 4,564,821 4,675,818 19.3% (60,020) 1 52,000 0 0 $17.98
2011 340 24,166,405 4,327,471 4,563,798 18.9% 0 1 52,000 $18.20
2010 340 24,166,405 4,025,375 4,559,069 18.9% (4,729) 0 0 0 0 $18.01
2009 340 24,166,405 3,952,013 4,489,651 18.6% (69,418) 7 0 0 0 $18.31
2008 333 23,944,035 3,623,328 4,029,379 16.8% (237,902) 15 222,370 5 181,773 $19.05
2007 318 22,890,719 3,225,477 3,430,750 15.0% 454,687 14 1,053,316 15 1,056,098 $18.38
2006 304 22,231,808 3,083,670 3,363,546 15.1% 591,707 12 658,911 15 823,780 $17.60
2005 292 21,663,483 3,592,129 4,011,668 18.5% 1,216,447 7 568,325 9 687,090 $17.13
2004 285 21,363,114 3,370,764 3,977,755 18.6% 266,456 8 300,369 7 285,551 $16.83
2003 277 21,145,758 3,863,328 4,735,311 22.4% 974,912 6 217,356 7 197,543 $16.84
2002 271 20,596,699 3,460,549 4,769,001 23.2% 582,749 6 549,059 7 569,191 $17.74
2001 265 20,485,219 3,614,392 4,608,080 22.5% (49,441) 36 111,480 8 149,612 $18.86
2000 229 16,806,570 1,531,660 1,935,283 11.5% 1,005,852 35 3,678,649 36 3,602,893 $19.71
1999 194 14,182,975 1,433,862 1,865,380 13.2% 2,553,692 40 2,623,595 33 2,436,162 $19.55
1998 154 10,775,747 1,294,631 1,294,631 12.0% 2,836,479 31 3,407,228 36 2,954,612 $19.31
2,839,777 2,597,277

Source: CoStar Property®

© 2013 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2013

Atlanta Office Market

N FULTON/FORSYTH COUNTY SUBMARKET

HISTORICAL FIGURES AT A GLANCE

Class A Submarket Historical Statistics Third Quarter 2013

Existing Inventory Vacancy Net Deliveries UC Inventory Quoted

Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates

2013 101 14,284,456 2,565,012 2,644,982 18.5% 299,346 00 0 0 $20.24
2012 101 14,284,456 2,846,436 2,944,328 20.6% (220,620) 1 52,000 0 0 $19.72
2011 100 14,232,456 2,461,301 2,671,708 18.8% (100,721) 00 1 52,000 $19.87
2010 100 14,232,456 2,110,217 2,570,987 18.1% 00 0 0 $19.41
2009 100 14,232,456 2,087,467 2,479,175 17.4% (91,812) 1 101,991 0 0 $20.03
2008 2,184,313 2,487,187 17.6% 110,003 6 839,264 1 101,991 $20.87
2007 99 14,130,465 1,915,402 1,999,304 15.0% 351,381 5 471,075 6 839,264 $20.38
2006 93 13,291,201 1,865,225 2,057,399 16.0% 529,170 2 296,496 6 629,485 $19.21
2005 88 12,820,126 2,195,018 2,410,719 19.2% 649,816 00 4 549,739 $18.23
2004 86 12,523,630 2,028,706 2,497,926 19.9% 00 0 0 $17.90
2003 86 12,523,630 2,420,956 3,041,543 24.3% 87,207 2 428,629 0 0 $17.87
2002 86 12,523,630 2,052,165 3,117,852 25.8% 543,617 00 2 428,629 $18.93
2001 84 12,095,001 2,148,225 2,850,457 23.6% 504,938 20 2,870,382 0 0 $20.33
2000 84 12,095,001 10.5% (267,395) 12 1,805,355 20 2,870,382 $21.89
1999 64 9,224,619 708,267 964,045 12.0% 983,970 11 1,891,825 12 1,805,355 $20.83
1998 52 7,419,264 711,404 889,875 16.0% 1,731,185 12 1,713,789 9 1,665,141 $20.99
41 5,527,439 887,054 887,054 1,889,004
1,904,858

Source: CoStar Property®

Class B Submarket Historical Statistics Third Quarter 2013

Existing Inventory Vacancy Net Deliveries UC Inventory Quoted

Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates

2013 210 9,140,980 1,642,656 1,678,011 18.4% 2,724 0 0 0 0 $15.31
2012 210 9,140,980 1,667,630 1,680,735 18.4% 159,598 0 0 0 0 $14.77
2011 210 9,140,980 1,814,413 1,840,333 20.1% 116,309 0 0 0 0 $15.03
2010 210 9,140,980 1,883,718 1,956,642 21.4% 0 0 0 0 $15.45
2009 210 9,140,980 1,835,748 1,981,678 21.7% 25,036 6 120,379 0 0 $15.70
2008 204 9,020,601 1,400,704 1,503,881 16.7% (357,418) 8 179,852 4 79,782 $16.85
2007 196 8,840,749 1,257,936 1,379,307 15.6% 9 187,836 8 182,634 $15.96
2006 187 8,652,913 1,090,548 1,178,250 13.6% 55,278 9 240,629 8 160,095 $15.17
2005 178 8,412,284 1,293,141 1,470,939 17.5% (13,221) 7 300,369 5 137,351 $15.63
2004 171 8,111,915 1,277,149 1,414,920 17.4% 533,318 6 138,613 7 285,551 $15.48
2003 165 7,973,302 1,377,953 1,629,349 20.4% 244,350 3 105,430 6 142,745 $15.23
2002 162 7,867,872 1,325,046 1,567,811 19.9% 353,042 5 91,986 4 125,562 $15.98
2001 157 7,775,886 1,382,190 1,625,326 20.9% 43,892 16 808,267 7 130,118 $17.12
2000 141 6,967,619 12.9% 149,501 22 801,102 16 732,511 $16.79
1999 119 6,166,517 753,346 901,191 15.4% 84,132 28 1,495,403 20 613,669 $17.42
1998 4,671,114 696,582 949,629 849,540 18 857,448 26 1,269,471 $17.44
91 386,773 386,773 8.3% 932,547
908,879

Source: CoStar Property®

Class C Submarket Historical Statistics Third Quarter 2013

Existing Inventory Vacancy Net Deliveries UC Inventory Quoted

Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates

2013 24 642,569 31,017 31,017 4.8% (19,260) 0 0 0 0 $15.20
2012 24 642,569 11,757 11,757 1.8% 6,100 0 0 0 0 $13.01
2011 24 642,569 17,857 17,857 2.8% 4,783 0 0 0 0 $13.10
2010 24 642,569 22,640 22,640 3.5% 1,758 0 0 0 0 $15.66
2009 24 642,569 24,398 24,398 3.8% (5,887) 0 0 0 0 $16.63
2008 24 642,569 18,511 18,511 2.9% 3,318 0 0 0 0 $18.97
2007 24 642,569 21,829 21,829 3.4% 0 0 0 0 $12.32
2006 24 642,569 59,155 59,155 9.2% 37,326 0 0 0 0 $10.73
2005 24 642,569 58,525 84,565 13.2% 25,410 0 0 0 0 $11.31
2004 24 642,569 55,809 55,809 8.7% (28,756) 2 78,743 0 0 $12.02
2003 22 563,826 51,919 51,919 9.2% 74,853 0 0 1 54,798
2002 22 563,826 70,838 70,838 12.6% 18,919 1 19,494 0 0 $9.81
2001 21 544,332 71,477 119,797 22.0% 68,453 0 0 1 19,494 $11.09
2000 21 544,332 57,547 57,547 10.6% (62,250) 1 17,138 0 0 $11.28
1999 20 527,194 13,376 13,376 2.5% (27,033) 1 20,000 1 17,138 $11.54
1998 19 507,194 1.6% 14,928 1 26,040 1 20,000 $10.73
8,304 8,304 26,040 $10.58

Source: CoStar Property®

© 2013 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com

Third Quarter 2013

Atlanta Office Market

N FULTON/FORSYTH COUNTY SUBMARKET

HISTORICAL FIGURES AT A GLANCE

Class A&B Submarket Historical Statistics Third Quarter 2013

Existing Inventory Vacancy Net Deliveries UC Inventory Quoted

Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates

2013 311 23,425,436 4,207,668 4,322,993 18.5% 302,070 00 0 0 $18.41
2012 311 23,425,436 4,514,066 4,625,063 19.7% (61,022) 1 52,000 0 0 $17.99
2011 310 23,373,436 4,275,714 4,512,041 19.3% 15,588 00 1 52,000 $18.20
2010 310 23,373,436 3,993,935 4,527,629 19.4% (66,776) 00 0 0 $18.02
2009 310 23,373,436 3,923,215 4,460,853 19.1% (247,415) 7 222,370 0 0 $18.31
2008 303 23,151,066 3,585,017 3,991,068 17.2% 406,659 14 1,019,116 5 181,773 $19.06
2007 289 22,131,950 3,173,338 3,378,611 15.3% 515,949 14 658,911 14 1,021,898 $18.45
2006 275 21,473,039 2,955,773 3,235,649 15.1% 1,183,134 11 537,125 14 789,580 $17.68
2005 264 20,935,914 3,488,159 3,881,658 18.5% 331,557 7 300,369 9 687,090 $17.21
2004 257 20,635,545 3,305,855 3,912,846 19.0% 896,659 6 138,613 7 285,551 $16.87
2003 251 20,496,932 3,798,909 4,670,892 22.8% 548,830 5 534,059 6 142,745 $16.89
2002 246 19,962,873 3,377,211 4,685,663 23.5% (117,894) 5 91,986 6 554,191 $17.87
2001 241 19,870,887 3,530,415 4,475,783 22.5% 1,068,102 36 3,678,649 7 130,118 $19.03
2000 205 16,192,238 1,461,613 1,865,236 11.5% 2,580,725 34 2,606,457 36 3,602,893 $19.88
1999 171 13,585,781 1,407,986 1,839,504 13.5% 2,821,551 39 3,387,228 32 2,419,024 $19.61
1998 132 10,198,553 1,273,827 1,273,827 12.5% 2,813,737 30 2,571,237 35 2,934,612 $19.42

Source: CoStar Property®

Class A,B&C Submarket Historical Statistics Third Quarter 2013

Existing Inventory Vacancy Net Deliveries UC Inventory Quoted

Period # Blds Total RBA Direct SF Total SF Vac % Absorption # Blds Total RBA # Blds Total RBA Rates

2013 335 24,068,005 4,238,685 4,354,010 18.1% 282,810 0 0 0 0 $18.40
2012 335 24,068,005 4,525,823 4,636,820 19.3% (54,922) 1 52,000 0 0 $17.98
2011 334 24,016,005 4,293,571 4,529,898 18.9% 20,371 0 1 52,000 $18.18
2010 334 24,016,005 4,016,575 4,550,269 18.9% (65,018) 0 0 0 0 $18.02
2009 334 24,016,005 3,947,613 4,485,251 18.7% (253,302) 7 0 0 0 $18.30
2008 327 23,793,635 3,603,528 4,009,579 16.9% 409,977 14 222,370 5 181,773 $19.06
2007 313 22,774,519 3,195,167 3,400,440 14.9% 553,275 14 1,019,116 14 1,021,898 $18.39
2006 299 22,115,608 3,014,928 3,294,804 14.9% 1,208,544 11 658,911 14 789,580 $17.62
2005 288 21,578,483 3,546,684 3,966,223 18.4% 302,801 7 537,125 9 687,090 $17.13
2004 281 21,278,114 3,361,664 3,968,655 18.7% 971,512 8 300,369 7 285,551 $16.83
2003 273 21,060,758 3,850,828 4,722,811 22.4% 567,749 5 217,356 7 197,543 $16.84
2002 268 20,526,699 3,448,049 4,756,501 23.2% (49,441) 6 534,059 6 554,191 $17.74
2001 262 20,415,219 3,601,892 4,595,580 22.5% 1,005,852 36 111,480 8 149,612 $18.86
2000 226 16,736,570 1,519,160 1,922,783 11.5% 2,553,692 35 3,678,649 36 3,602,893 $19.71
1999 191 14,112,975 1,421,362 1,852,880 13.1% 2,836,479 40 2,623,595 33 2,436,162 $19.55
1998 151 10,705,747 1,282,131 1,282,131 12.0% 2,839,777 31 3,407,228 36 2,954,612 $19.31
2,597,277

Source: CoStar Property®

© 2013 CoStar Realty Information, Inc. The CoStar Office Report www.costar.com