CoStar Office Report - Downtown Atlanta

The CoStar
Office Report

YEAR-END 2009

Atlanta Office Market

YEAR-END 2009 – ATLANTA

Atlanta Office Market

Table of Contents

Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A

Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B

Terms & Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C

Market Highlights & Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

CoStar Markets & Submarkets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Employment & Tenant Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Employment & Unemployment Analysis
Tenant Profiles

Inventory & Development Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Construction Activity Map
Inventory & Development Analysis
Select Top Deliveries
Select Top Under Construction Properties

Figures at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Figures at a Glance by Class & Market
Figures at a Glance by Class & Submarket
Figures at a Glance Grouped by CBD vs Suburban
Historical Figures at a Glance

Leasing Activity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Leasing Activity Map
Leasing Activity Analysis
Select Top Lease Transactions

Sales Activity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Sales Activity Analysis
Select Top Sales Transactions
Select Same Building Sales
Select Land Sales

Analysis of Individual CoStar Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Buckhead Market
Central Perimeter Market
Downtown Atlanta Market
Midtown Atlanta Market
North Fulton Market
Northeast Atlanta Market
Northlake Market
Northwest Atlanta Market
South Atlanta Market
West Atlanta Market

©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT A

ATLANTA – YEAR-END 2009

Atlanta Office Market

Methodology

The CoStar Office Report, unless specifically stated otherwise, calculates office statistics using CoStar
Group’s entire database of existing and under construction office buildings in each metropolitan area.
Included are office, office condominium, office loft, office medical, all classes and all sizes, and both
multi-tenant and single-tenant buildings, including owner-occupied buildings. CoStar Group's national
database includes approximately 69.1 billion square feet of coverage in 2.8 million properties. All rental
rates reported in the CoStar Office Report have been converted to a Full Service equivalent rental rate.

For information on subscribing to CoStar’s other products and services, please contact us at
1-877-7COSTAR, or visit our web site at www.costar.com

© Copyright 2010 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of the
information contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness or
completeness of the information. The publication is provided ‘as is’ and CoStar expressly disclaims any guarantees, representations or
warranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

CoStar Group, Inc.
2 Bethesda Metro Center • Bethesda, MD USA 20814 • (800) 204-5960 • www.costar.com • NASDAQ: CSGP

B THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

YEAR-END 2009 – ATLANTA

Atlanta Office Market

Terms & Definitions

Availability Rate: The ratio of available space to total rentable Deliveries: Buildings that complete construction during a specified
space, calculated by dividing the total available square feet by the period of time. In order for space to be considered delivered, a
total rentable square feet. certificate of occupancy must have been issued for the property.
Available Space: The total amount of space that is currently Delivery Date: The date a building completes construction and
being marketed as available for lease in a given time period. It receives a certificate of occupancy.
includes any space that is available, regardless of whether the Developer: The company, entity or individual that transforms raw
space is vacant, occupied, available for sublease, or available at land to improved property by use of labor, capital and entrepre-
a future date. neurial efforts.
Build-to-Suit: A term describing a particular property, developed Direct Space: Space that is being offered for lease directly from
specifically for a certain tenant to occupy, with structural features, the landlord or owner of a building, as opposed to space being
systems, or improvement work designed specifically for the needs offered in a building by another tenant (or broker of a tenant)
of that tenant. A build-to-suit can be leased or owned by the ten- trying to sublet a space that has already been leased.
ant. In a leased build-to-suit, a tenant will usually have a long Existing Inventory: The square footage of buildings that have
term lease on the space. received a certificate of occupancy and are able to be occupied
Buyer: The individual, group, company, or entity that has pur- by tenants. It does not include space in buildings that are either
chased a commercial real estate asset. planned, under construction or under renovation.
Cap Rate: Short for capitalization rate. The Cap Rate is a calcula- Flex Building: A type of building designed to be versatile, which
tion that reflects the relationship between one year’s net operating may be used in combination with office (corporate headquarters),
income and the current market value of a particular property. research and development, quasi-retail sales, and including but
The Cap Rate is calculated by dividing the annual net operating not limited to industrial, warehouse, and distribution uses. A typi-
income by the sales price (or asking sales price). cal flex building will be one or two stories with at least half of the
CBD: Abbreviation for Central Business District. (See also: rentable area being used as office space, have ceiling heights of 16
Central Business District) feet or less, and have some type of drive-in door, even though the
Central Business District: The designations of Central Business door may be glassed in or sealed off.
District (CBD) and Suburban refer to a particular geographic area Full Service Rental Rate: Rental rates that include all operating
within a metropolitan statistical area (MSA) describing the level expenses such as utilities, electricity, janitorial services, taxes and
of real estate development found there. The CBD is characterized insurance.
by a high density, well organized core within the largest city of a Gross Absorption: The total change in occupied space over a
given MSA. given period of time, counting space that is occupied but not
Class A: A classification used to describe buildings that generally space that is vacated by tenants. Gross absorption differs from
qualify as extremely desirable investment-grade properties and leasing Activity, which is the sum of all space leased over a certain
command the highest rents or sale prices compared to other period of time. Unless otherwise noted Gross Absorption includes
buildings in the same market. Such buildings are well located direct and sublease space.
and provide efficient tenant layouts as well as high quality, and in Growth in Inventory: The change in size of the existing square
some buildings, one-of-a-kind floor plans. They can be an archi- footage in a given area over a given period of time, generally due
tectural or historical landmark designed by prominent architects. to the construction of new buildings.
These buildings contain a modern mechanical system, and have Industrial Building: A type of building adapted for such uses as
above-average maintenance and management as well as the best the assemblage, processing, and/or manufacturing of products
quality materials and workmanship in their trim and interior fit- from raw materials or fabricated parts. Additional uses include
tings. They are generally the most attractive and eagerly sought warehousing, distribution, and maintenance facilities. The pri-
by investors willing to pay a premium for quality. mary purpose of the space is for storing, producing, assembling,
Class B: A classification used to describe buildings that generally or distributing product.
qualify as a more speculative investment, and as such, command Landlord Rep: (Landlord Representative) In a typical lease trans-
lower rents or sale prices compared to Class A properties. Such action between an owner/landlord and tenant, the broker that
buildings offer utilitarian space without special attractions, and represents the interests of the owner/landlord is referred to as the
have ordinary design, if new or fairly new; good to excellent Landlord Rep.
design if an older non-landmark building. These buildings typical- Leased Space: All the space that has a financial lease obligation.
ly have average to good maintenance, management and tenants. It includes all leased space, regardless of whether the space is
They are less appealing to tenants than Class A properties, and currently occupied by a tenant. Leased space also includes space
may be deficient in a number of respects including floor plans, being offered for sublease.
condition and facilities. They lack prestige and must depend Leasing Activity: The volume of square footage that is commit-
chiefly on a lower price to attract tenants and investors. ted to and signed under a lease obligation for a specific building
Class C: A classification used to describe buildings that gener- or market in a given period of time. It includes direct leases,
ally qualify as no-frills, older buildings that offer basic space and subleases and renewals of existing leases. It also includes any
command lower rents or sale prices compared to other buildings pre-leasing activity in planned, under construction, or under
in the same market. Such buildings typically have below-average renovation buildings.
maintenance and management, and could have mixed or low Market: Geographic boundaries that serve to delineate core areas
tenant prestige, inferior elevators, and/or mechanical/electrical that are competitive with each other and constitute a generally
systems. These buildings lack prestige and must depend chiefly accepted primary competitive set of areas. Markets are building-
on a lower price to attract tenants and investors. type specific, and are non-overlapping contiguous geographic
Construction Starts: Buildings that began construction during a designations having a cumulative sum that matches the boundar-
specific period of time. (See also: Deliveries) ies of the entire Region (See also: Region). Markets can be further
Contiguous Blocks of Space: Space within a building that is, or is subdivided into Submarkets. (See also: Submarkets)
able to be joined together into a single contiguous space.

©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT C

ATLANTA – YEAR-END 2009

Atlanta Office Market

Multi-Tenant: Buildings that house more than one tenant at a Seller: The individual, group, company, or entity that sells a par-
given time. Usually, multi-tenant buildings were designed and ticular commercial real estate asset.
built to accommodate many different floor plans and designs for SF: Abbreviation for Square Feet.
different tenant needs. (See also: Tenancy). Single-Tenant: Buildings that are occupied, or intended to be
Net Absorption: The net change in occupied space over a given occupied by a single tenant. (See also: Build-to-suit and Tenancy)
period of time. Unless otherwise noted Net Absorption includes Sublease Space: Space that has been leased by a tenant and is
direct and sublease space. being offered for lease back to the market by the tenant with
Net Rental Rate: A rental rate that excludes certain expenses that the lease obligation. Sublease space is sometimes referred to as
a tenant could incur in occupying office space. Such expenses sublet space.
are expected to be paid directly by the tenant and may include Submarkets: Specific geographic boundaries that serve to delin-
janitorial costs, electricity, utilities, taxes, insurance and other eate a core group of buildings that are competitive with each
related costs. other and constitute a generally accepted primary competitive
New Space: Sometimes called first generation space, refers to set, or peer group. Submarkets are building type specific (office,
space that has never been occupied and/or leased by a tenant. industrial, retail, etc.), with distinct boundaries dependent on
Occupied Space: Space that is physically occupied by a tenant. different factors relevant to each building type. Submarkets are
It does not include leased space that is not currently occupied non-overlapping, contiguous geographic designations having a
by a tenant. cumulative sum that matches the boundaries of the Market they
Office Building: A type of commercial building used exclusively are located within (See also: Market).
or primarily for office use (business), as opposed to manufactur- Suburban: The Suburban and Central Business District (CBD)
ing, warehousing, or other uses. Office buildings may sometimes designations refer to a particular geographic area within a metro-
have other associated uses within part of the building, i.e., retail politan statistical area (MSA). Suburban is defined as including all
sales, financial, or restaurant, usually on the ground floor. office inventory not located in the CBD. (See also: CBD)
Owner: The company, entity, or individual that holds title on a Tenancy: A term used to indicate whether or not a building is
given building or property. occupied by multiple tenants (See also: Multi-tenant) or a single
Planned/Proposed: The status of a building that has been tenant. (See also: Single-tenant)
announced for future development but not yet started Tenant Rep: Tenant Rep stands for Tenant Representative. In a
construction. typical lease transaction between an owner/landlord and tenant,
Preleased Space: The amount of space in a building that has been the broker that represents the interests of the tenant is referred to
leased prior to its construction completion date, or certificate of as a Tenant Rep.
occupancy date. Time On Market: A measure of how long a currently available
Price/SF: Calculated by dividing the price of a building (either space has been marketed for lease, regardless of whether it is
sales price or asking sales price) by the Rentable Building Area vacant or occupied.
(RBA). Under Construction: The status of a building that is in the process
Property Manager: The company and/or person responsible for of being developed, assembled, built or constructed. A building is
the day-to-day operations of a building, such as cleaning, trash considered to be under construction after it has begun construc-
removal, etc. The property manager also makes sure that the vari- tion and until it receives a certificate of occupancy.
ous systems within the building, such as the elevators, HVAC, and Vacancy Rate: A measurement expressed as a percentage of the
electrical systems, are functioning properly. total amount of physically vacant space divided by the total
Quoted Rental Rate: The asking rate per square foot for a par- amount of existing inventory. Under construction space generally
ticular building or unit of space by a broker or property owner. is not included in vacancy calculations.
Quoted rental rates may differ from the actual rates paid by Vacant Space: Space that is not currently occupied by a tenant,
tenants following the negotiation of all terms and conditions in regardless of any lease obligation that may be on the space.
a specific lease. Vacant space could be space that is either available or not avail-
RBA: Abbreviation for Rentable Building Area. (See also: able. For example, sublease space that is currently being paid for
Rentable Building Area) by a tenant but not occupied by that tenant, would be considered
Region: Core areas containing a large population nucleus, that vacant space. Likewise, space that has been leased but not yet
together with adjacent communities have a high degree of eco- occupied because of finish work being done, would also be con-
nomic and social integration. Regions are further divided into sidered vacant space.
market areas, called Markets. (See also: Markets) Weighted Average Rental Rate: Rental rates that are calculated by
Relet Space: Sometimes called second generation or direct space, factoring in, or weighting, the square footage associated with each
refers to existing space that has previously been occupied by particular rental rate. This has the effect of causing rental rates
another tenant. on larger spaces to affect the average more than that of smaller
Rentable Building Area: (RBA) The total square footage of a spaces. The weighted average rental rate is calculated by taking
building that can be occupied by, or assigned to a tenant for the the ratio of the square footage associated with the rental rate on
purpose of determining a tenant’s rental obligation. Generally each individual available space to the square footage associated
RBA includes a percentage of common areas including all hall- with rental rates on all available spaces, multiplying the rental rate
ways, main lobbies, bathrooms, and telephone closets. by that ratio, and then adding together all the resulting numbers.
Rental Rates: The annual costs of occupancy for a particular Unless specifically specified otherwise, rental rate averages include
space quoted on a per square foot basis. both Direct and Sublet available spaces.
Sales Price: The total dollar amount paid for a particular property Year Built: The year in which a building completed construction
at a particular point in time. and was issued a certificate of occupancy.
Sales Volume: The sum of sales prices for a given group of build- YTD: Abbreviation for Year-to-Date. Describes statistics that are
ings in a given time period. cumulative from the beginning of a calendar year through what-
ever time period is being studied.

D THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

YEAR-END 2009 – ATLANTA

Atlanta Office Market

OVERVIEW

Atlanta’s Vacancy Increases to 16.8%
Net Absorption Negative (535,384) SF in the Quarter

T he Atlanta Office market ended the fourth quarter 2009 to negative (20,363) square feet in the third quarter 2009, nega-
with a vacancy rate of 16.8%. The vacancy rate was tive (122,133) in the second quarter 2009, and positive 5,965 in
up over the previous quarter, with net absorption total- the first quarter 2009.
ing negative (535,384) square feet in the fourth quarter. Vacant
sublease space decreased in the quarter, ending the quarter at The Class-B office market recorded net absorption of nega-
3,640,000 square feet. Rental rates ended the fourth quarter at tive (18,095) square feet in the fourth quarter 2009, compared to
$19.14, a decrease over the previous quarter. A total of three negative (260,093) square feet in the third quarter 2009, negative
buildings delivered to the market in the quarter totaling 95,076 (876,925) in the second quarter 2009, and negative (301,006) in
square feet, with 1,732,432 square feet still under construction at the first quarter 2009.
the end of the quarter.
The Class-C office market recorded net absorption of nega-
Absorption tive (95,142) square feet in the fourth quarter 2009 compared to
Net absorption for the overall Atlanta office market was negative (243,082) square feet in the third quarter 2009, negative
(333,198) in the second quarter 2009, and negative (206,765) in
negative (535,384) square feet in the fourth quarter 2009. That the first quarter 2009.
compares to negative (523,538) square feet in the third quarter
2009, negative (1,332,256) square feet in the second quarter Net absorption for Atlanta’s central business district was
2009, and negative (501,806) square feet in the first quarter negative (138,538) square feet in the fourth quarter 2009. That
2009. compares to negative (121,273) square feet in the third quarter
2009, negative (338,243) in the second quarter 2009, and nega-
Tenants moving out of large blocks of space in 2009 include: tive (50,727) in the first quarter 2009.
Bryan Cave Powell Goldstein LLP moving out of 151,048 square
feet at One Atlantic Center; Arris moving out of 144,647 square Net absorption for the suburban markets was negative
feet at Johns Creek - Bldg 11450; and AT&T moving out of (396,846) square feet in the fourth quarter 2009. That compares
138,000 square feet at American Cancer Society Center. to negative (402,265) square feet in third quarter 2009, negative
(994,013) in the second quarter 2009, and negative (451,079) in
Tenants moving into large blocks of space in 2009 include: the first quarter 2009.
First Data Corporation moving into 181,831 square feet at
Glenridge Highlands II; Verizon Communications, Inc. mov- Vacancy
ing into 141,804 square feet at Stonebridge II; and Deloitte & The office vacancy rate in the Atlanta market area increased
Touche, LLP. moving into 123,964 square feet at One Ninety One
Peachtree Tower. to 16.8% at the end of the fourth quarter 2009. The vacancy
rate was 16.6% at the end of the third quarter 2009, 16.0% at
The Class-A office market recorded net absorption of nega- the end of the second quarter 2009, and 15.1% at the end of the
tive (422,147) square feet in the fourth quarter 2009, compared first quarter 2009.

Vacancy Rates by Class 1986-2009 Class-A projects reported a vacancy rate of 18.6% at the

A B C Total Market

35%

30%

25%

Vacancy Rate 20%

15%

10%

5%

0%
1986 1987 1988 1989 1989 1990 1991 1992 1992 1993 1994 1995 1995 1996 1997 1998 1998 1999 2000 2001 2001 2002 2003 2004 2004 2005 2006 2007 2007 2008 2009
4q 3q 2q 1q 4q 3q 2q 1q 4q 3q 2q 1q 4q 3q 2q 1q 4q 3q 2q 1q 4q 3q 2q 1q 4q 3q 2q 1q 4q 3q 2q

Source: CoStar Property®

Absorption©2010 COSTAR GROUP, INC. & Deliveries THE COSTAR OFFICE U.S.REPORT Vacancy Comparison 1

Past 10 Quarters Past 10 Quarters

ATLANTA – YEAR-END 2009

Atlanta Office Market

OVERVIEW

end of the fourth quarter 2009, 18.2% at the end of the third of the second quarter 2009 and 3,179,722 square feet at the end
quarter 2009, 17.2% at the end of the second quarter 2009, and of the first quarter 2009.
16.4% at the end of the first quarter 2009.
Atlanta’s Class-A projects reported vacant sublease space of
Class-B projects reported a vacancy rate of 15.9% at the end 2,618,812 square feet at the end of fourth quarter 2009, down
of the fourth quarter 2009, 15.8% at the end of the third quarter from the 2,667,576 square feet reported at the end of the third
2009, 15.5% at the end of the second quarter 2009, and 14.6% quarter 2009. There were 2,656,829 square feet of sublease space
at the end of the first quarter 2009. vacant at the end of the second quarter 2009, and 2,507,445
square feet at the end of the first quarter 2009.
Class-C projects reported a vacancy rate of 14.9% at the
end of the fourth quarter 2009, 14.7% at the end of third quarter Class-B projects reported vacant sublease space of 948,413
2009, 14.1% at the end of the second quarter 2009, and 13.4% square feet at the end of the fourth quarter 2009, down from the
at the end of the first quarter 2009. 951,300 square feet reported at the end of the third quarter 2009.
At the end of the second quarter 2009 there were 940,301 square
The overall vacancy rate in Atlanta’s central business district feet, and at the end of the first quarter 2009 there were 628,276
at the end of the fourth quarter 2009 increased to 14.0%. The square feet vacant.
vacancy rate was 13.6% at the end of the third quarter 2009,
13.2% at the end of the second quarter 2009, and 12.3% at the Class-C projects reported increased vacant sublease space
end of the first quarter 2009. from the third quarter 2009 to the fourth quarter 2009. Sublease
vacancy went from 64,890 square feet to 72,775 square feet dur-
The vacancy rate in the suburban markets increased to ing that time. There was 46,111 square feet at the end of the
17.2% in the fourth quarter 2009. The vacancy rate was 17.0% second quarter 2009, and 44,001 square feet at the end of the
B Cat theToetnaldMaorfketthe third quarter 2009, 16.4% at the end of the first quarter 2009.
second quarter 2009, and 15.6% at the end of the first quarter
2009. Sublease vacancy in Atlanta’s central business district stood
at 494,174 square feet at the end of the fourth quarter 2009. It
Largest Lease Signings was 523,589 square feet at the end of the third quarter 2009,
The largest lease signings occurring in 2009 included: the 512,855 square feet at the end of the second quarter 2009, and
279,683 square feet at the end of the first quarter 2009.
254,619-square-foot lease signed by SunTrust Bank at Marquis
Two Tower in the Downtown Atlanta market; the 190,000- Sublease vacancy in the suburban markets ended the fourth
square-foot deal signed by Primerica Financial Services, Inc. at quarter 2009 at 3,145,826 square feet. At the end of the third
3120 Breckenridge Blvd in the Northeast Atlanta market; and the quarter 2009 sublease vacancy was 3,160,177 square feet, was
182,956-square-foot lease signed by NCR Corporation at 2651 3,130,386 square feet at the end of the second quarter 2009, and
Satellite Blvd in the Northeast Atlanta market. was 2,900,039 square feet at the end of the first quarter 2009.

Sublease Vacancy Rental Rates
The average quoted asking rental rate for available office
1997 1998 194k9qe8t193d9qe9Tc2hr02ee0q0aas2em010qd1ot2uo04n0q1t32,o6030qf420v2,a0200qc30a20n01t0qs4qs2uu04b0qa4lree2a030qsf5eee2ts02p0qb6ay2c01e0qth7ien2040qet7nh2de030qoA8 f2tl02ta0qh9netafomuratrh-
2q 1q space, all classes, was $19.14 per square foot per year at the end
of the fourth quarter 2009 in the Atlanta market area. This rep-
quarter 2009, from 3,683,766 square feet at the end of the third resented a 0.4% decrease in quoted rental rates from the end of
the third quarter 2009, when rents were reported at $19.21 per
quarter 2009. There was 3,643,241 square feet vacant at the end square foot.

U.S. Vacancy Comparison The average quoted rate within the Class-A sector was
$21.91 at the end of the fourth quarter 2009, while Class-B rates
Past 10 Quarters stood at $16.84, and Class-C rates at $14.76. At the end of the
third quarter 2009, Class-A rates were $22.10 per square foot,
Atlanta United States Class-B rates were $16.93, and Class-C rates were $15.23.

18.0% The average quoted asking rental rate in Atlanta’s CBD was
$18.89 at the end of the fourth quarter 2009, and $19.16 in the
16.0% suburban markets. In the third quarter 2009, quoted rates were
$18.75 in the CBD and $19.26 in the suburbs.
14.0%
Deliveries and Construction
Vacancy Rate 12.0% During the fourth quarter 2009, three buildings totaling

10.0% 95,076 square feet were completed in the Atlanta market area.
This compares to 21 buildings totaling 1,432,685 square feet that
8.0%

6.0%

4.0%

2.0%

0.0%

2007 2007 2008 2008 2008 2008 2009 2009 2009 2009
3q 4q 1q 2q 3q 4q 1q 2q 3q 4q

Source: CoStar Property•

2 THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

5%

0% YEAR-END 2009 – ATLANTA

Atlanta Office Market1986 1987 1988 1989 1989 1990 1991 1992 1992 1993 1994 1995 1995 1996 1997 19
4q 3q 2q 1q 4q 3q 2q 1q 4q 3q 2q 1q 4q 3q 2q 1

OVERVIEW Source: CoStar Property®

were completed in the third quarter 2009, 19 buildings totaling Absorption & Deliveries
1,037,883 square feet completed in the second quarter 2009, and
371,820 square feet in 31 buildings completed in the first quarter Past 10 Quarters
2009.
Net Absorption Deliveries
There were 1,732,432 square feet of office space under con- 1.43
struction at the end of the fourth quarter 2009. 2.0
1.04
Some of the notable 2009 deliveries include: Terminus 200, 1.50 1.56 1.36
a 564,850-square-foot facility that delivered in third quarter 2009 1.5 1.35 0.37
and is now 9% occupied, and 271 17th Street, a 548,039-square-
foot building that delivered in second quarter 2009 and is now Millions SF 1.01 0.90 0.61
34% occupied. 1.0 0.48 0.10

The largest projects underway at the end of fourth quarter 0.5 0.10
2009 were 12th & Midtown, a 719,003-square-foot building 0.02
with 12% of its space pre-leased, and Phipps Tower, a 486,000-
square-foot facility that is 1% pre-leased. 0.0

Inventory (0.5) (0.17) (0.32)
Total office inventory in the Atlanta market area amounted (1.0)
(0.50) (0.52) (0.54)
to 273,802,684 square feet in 11,897 buildings as of the end of
the fourth quarter 2009. The Class-A office sector consisted of (1.5) (1.33)
109,995,060 square feet in 477 projects. There were 4,793 Class- 2009 2009
B buildings totaling 118,580,904 square feet, and the Class-C 2007 2007 2008 2008 2008 2008 2009 2009
sector consisted of 45,226,720 square feet in 6,627 buildings. 3q 4q 1q 2q 3q 4q 1q 2q 3q 4q
Within the Office market there were 516 owner-occupied build-
ings accounting for 28,268,159 square feet of office space. Source: CoStar Property•

Sales Activity Total office building sales activity in 2009 was down com-
Tallying office building sales of 15,000 square feet or larger, pared to 2008. In the first nine months of 2009, the market saw
27 office sales transactions with a total volume of $111,057,591.
Atlanta office sales figures fell during the third quarter 2009 in The price per square foot averaged $83.76. In the same first nine
terms of dollar volume compared to the second quarter of 2009. months of 2008, the market posted 83 transactions with a total
volume of $1,682,827,967. The price per square foot averaged
In the third quarter, 12 office transactions closed with a total $166.91.
volume of $36,986,852. The 12 buildings totaled 598,985 square
feet and the average price per square foot equated to $61.75 Cap rates have been higher in 2009, averaging 8.07% com-
per square foot. That compares to eight transactions totaling pared to the same period in 2008 when they averaged 7.81%.
$54,586,000 in the second quarter 2009. The total square foot-
age in the second quarter was 497,203 square feet for an average One of the largest transactions that occurred within the last
price per square foot of $109.79. four quarters in the Atlanta market is the sale of Pershing Park
Plaza in Atlanta. This 159,103 square foot office building sold
for $32,650,000, or $205.21 per square foot. The property sold
on 6/30/2009.

Reports compiled by: Richard Poland and Corey Durant CoStar Research
Managers.

©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 3

ATLANTA – YEAR-END 2009

Atlanta Office Market

MARKETS

CoStar Markets & 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 within a metropolitan area that are 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 Upper Buckhead Lawrenceville/Lilburn Norcross/Ptree Corners
Buckhead
Central Perimeter Lower Buckhead Northside Dr/Georgia Tech I-20 East/Conyers Newton County
Downtown Atlanta N Fulton/Forsyth County
Midtown Atlanta Central Perimeter Duluth/Suwanee/Buford Cumberland/Galleria East Cobb
North Fulton
Northeast Atlanta Downtown Atlanta* Decatur Jasper County Lamar County
Stone Mountain North Clayton/Airport Pike County
Northlake Midtown/Pershing Point Cherokee County
Pickens County Heard County Villa Rica/West Outlying
Northwest Atlanta Dawson County Fayette/Coweta County
Monroe County
South Atlanta Barrow County Spalding County
Walton County Haralson County
West Atlanta West Atlanta
Chamblee/Dville/N D Hills
Northlake/Lavista

Bartow County
Kennesaw/Town Center

Butts County
Meriwether County
South Clayton/Henry Cnty

Douglasville/Lithia Sprng
W Carroll County

* Submarkets comprising the CBD. For statistics reference the CBD vs Suburban Figures at a Glance Page. ©2010 COSTAR GROUP, INC.
4 THE COSTAR OFFICE REPORT

YEAR-END 2009 – ATLANTA

Atlanta Office Market

EMPLOYMENT AND TENANT

Total Employment by Industry Total Employment Growth

Percent of Total Employment by Industry Total Number of Jobs Added Per Year

0%4% 6% Natural Resources & 6.0% Atlanta U.S. Average
Mining 5.0%
23% Construction 4.0%
3.0%
15% Manufacturing 2.0%
1.0%
Trade, Transportation & Percent Growth 0.0%
Utilities -1.0%
Information -2.0%
-3.0%
Financial Activities -4.0%
-5.0%
4% 3% Professional & Business -6.0%
10% 6% Services -7.0%
Education & Health
Services
Leisure & Hospitality

Other Services

17% Government

12% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Source: Department of Labor, Bureau of Labor Statistics Source: Department of Labor, Bureau of Labor Statistics

Office* Employment Growth Office* Employment Growth

Cumulative Growth in Office* Jobs Over the Past 5 Years Number of Office* Jobs Added Per Year

Employment Inventory Atlanta U.S. Average

Market Growth Growth Difference 7.0%
6.0%
Atlanta -8.00% 6.90% -14.90%
5.0%
Boston -1.10% 2.60% -3.70% 4.0%
3.0%
Chicago -5.80% 4.30% -10.10% Percent Growth
2.0%
Dallas/Ft Worth 4.20% 7.10% -2.90% 1.0%
0.0%
Denver -0.70% 5.10% -5.80%
-1.0%
Los Angeles -6.20% 2.90% -9.10% -2.0%

New York City -0.10% 1.80% -1.90% -3.0%
-4.0%
Seattle/Puget Sound 1.70% 8.60% -6.90% -5.0%

Tampa/St Petersburg -10.50% 8.00% -18.50% -6.0%
-7.0%
Washington -0.80% 9.40% -10.20% -8.0%

-9.0%
-10.0%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Source: Department of Labor, Bureau of Labor Statistics

Historical Unemployment Rates Source: Department of Labor, Bureau of Labor Statistics. * Office employment is defined as jobs in the Information,
Financial Activities, and Professional & Business Services industries

Atlanta U.S. Average

12.0%

10.0%

Percent Unemployment 8.0%

6.0%

4.0%

2.0%

0.0% 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009
3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q 1q 3q
1999
1q

Source: Department of Labor, Bureau of Labor Statistics.

©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 5

ATLANTA – YEAR-END 2009

Atlanta Office Market

EMPLOYMENT AND TENANT

Tenant by Size Range Tenants by Lease Expiration

Based on Total Number of Tenants Based on Total Square Footage of Tenants

75,000 SF & Up 2.0% 2016 4.5%

50,000-74,999 SF 1.1% 2015 6.4%

25,000-49,999 SF 3.2%

2014 14.6%

10,000-24,999 SF 10.5%

2013 12.7%

5,000-9,999 SF 14.3%

2,500-4,999 SF 23.6% 2012 16.2%

Up to 2,499 SF 45.3% 2011 14.5%
15%
0% 10% 20% 30% 40% 50% 0% 5% 10% 20%
Percentage of Tenants
Percentage of Tenants
Source: CoStar Tenant®
Source: CoStar Tenant®

Tenants by Industry SF Per Employee by Industry

Based on Total Square Footage of Tenants Based on All Tenants

Finance/Ins/RE 19.8% Law Firms 436.4

Business-Service 12.6% Services 431.4

Manufacturing 11.4% Finance/Ins/RE 356.6

Services 10.9% Retailers/Wholes 335.3

Government 8.2% Manufacturing 332.6

Law Firms 8.0% Agri/Mining/Util 322.9

Medical 7.2% Medical 312.7

Communications 6.3% Government 309.9

Retailers/Wholes 4.6% Transportation 284.4

Agri/Mining/Util 3.4% Engineers/Archit 278.3

Engineers/Archit 3.1% Business-Service 265.0

Transportation 2.5% Communications 244.5

Accountants 1.9% Accountants 240.0

0% 5% 10% 15% 20% 25% 0 100 200 300 400 500
Percentage of Tenants SF Per Employee

Source: CoStar Tenant® Source: CoStar Tenant®

6 THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

YEAR-END 2009 – ATLANTA

Atlanta Office Market

INVENTORY & DEVELOPMENT

Construction Highlights in Select CoStar Markets

Color Coded by Under Construction Square Footage as a Percentage of Existing Inventory

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Source: CoStar Property® ����� �� �����

©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 7

ATLANTA – YEAR-END 2009

Atlanta Office Market

INVENTORY & DEVELOPMENT

Historical Deliveries 1982 - 2009

14.0 Deliveries Average Delivered SF
12.0 10.5
10.0 12.4

8.0 11.3 11.0 11.4
6.0
4.0 9.7 10.1
2.0 9.5

Millions of SF 7.9

7.1 7.0 6.7
5.2 5.9

4.9 5.0 4.1 4.4 4.4
3.7 4.2 3.1 3.8 3.7 2.9

2.9

1.6
0.9

0.0
1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Source: CoStar Property® * Future deliveries based on current under construction buildings.

Construction Activity Markets Ranked by Under Construction Square Footage

Under Construction Inventory Average Bldg Size

Market # Bldgs Total RBA Preleased SF Preleased % All Existing U/C
Buckhead 2 0.5%
922,585 4,860 52,190 461,292

Midtown Atlanta 1 719,003 86,280 12.0% 67,354 719,003

Northwest Atlanta 3 56,710 4,500 7.9% 19,432 18,903

South Atlanta 1 21,000 0 0.0% 11,965 21,000

Northeast Atlanta 1 7,134 2,140 30.0% 13,904 7,134

Northlake 1 6,000 0 0.0% 14,050 6,000

West Atlanta 0 0 0 0.0% 11,591 0

Central Perimeter 0 0 0 0.0% 46,924 0

Downtown Atlanta 0 0 0 0.0% 101,205 0

North Fulton 0 0 0 0.0% 21,369 0

Totals 9 1,732,432 97,780 5.6% 23,014 192,492

Source: CoStar Property®

Recent Deliveries Future Deliveries

Leased & Un-Leased SF in Deliveries Since 2005 Preleased & Un-Leased SF in Properties Scheduled to Deliver

Leased Un-Leased 2,000 Preleased Un-Leased
7.0 1,800
1,600
6.0 1,400
1,200
5.0 1,000

Millions of SF 800 T
Thousands of SF 600
4.0 400
200
3.0
0
2.0

1.0

0.0 2006 2007 2008 2009 2010 1q 2010 2q 2010 3q
2005
Source: CoStar Property®
Source: CoStar Property®

8 THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

YEAR-END 2009 – ATLANTA

Atlanta Office Market

INVENTORY & DEVELOPMENT

Historical Construction Starts & Deliveries Deliveries

Square Footage Per Quarter Starting and Completing Construction

Construction Starts
3.5 3.25

3.0

2.5
2.16

Millions of SF 2.0

1.59 1.50 1.45 1.56 1.43
1.5 1.05
1.32 1.34 1.36 1.35 1.36
1.03 1.15
1.01 1.08 1.04
0.90
1.0 0.74
0.64
0.61 0.49 0.61

0.5 0.22 0.26 0.37

0.13 0.12 0.00 0.000.10

0.0

2006 1q 2006 2q 2006 3q 2006 4q 2007 1q 2007 2q 2007 3q 2007 4q 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Source: CoStar Property®

Recent Deliveries by Project Size Breakdown of Year-to-Date Development Based on RBA of Project

Building Size # Bldgs RBA SF Leased % Leased Avg Rate Single-Tenant Multi-Tenant

< 50,000 SF 65 771,290 349,713 45.3% $21.31 41,794 729,496

50,000 SF - 99,999 SF 3 222,992 130,862 58.7% $24.48 0 222,992

100,000 SF - 249,999 SF 3 337,092 96,739 28.7% $25.17 0 337,092

250,000 SF - 499,999 SF 1 493,201 133,164 27.0% $32.73 0 493,201

>= 500,000 SF 2 1,112,889 237,170 21.3% $27.24 0 1,112,889

Source: CoStar Property®

Recent Development by Tenancy Existing Inventory Comparison

Based on RBA Developed for Single & Multi Tenant Use Based on Total RBA

2009 Deliveries Currently Under Construction By Class By Space Type

1% 0% 17% 18%
99% 100% 82%
43% 40%

Multi Single Multi Single Class A Class B Class C Multi Single
Source: CoStar Property® Source: CoStar Property®

©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 9

ATLANTA – YEAR-END 2009

Atlanta Office Market

INVENTORY & DEVELOPMENT

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������������������������ THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

10

YEAR-END 2009 – ATLANTA

Atlanta Office Market

INVENTORY & DEVELOPMENT

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������������������������ THE COSTAR OFFICE REPORT 11
©2010 COSTAR GROUP, INC.

ATLANTA – YEAR-END 2009

Atlanta Office Market

FIGURES AT A GLANCE

Class A Market Statistics Year-End 2009

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries
Market # Blds Total RBA Direct SF Vac % Const SF Rates
1,058,051
Buckhead 49 13,892,105 2,911,165 3,056,132 22.0% 56,896 922,585 $26.12

Central Perimeter 79 20,516,436 3,470,415 3,978,838 19.4% (533,817) 0 0 $21.79

Downtown Atlanta 28 15,342,560 2,881,251 3,356,699 21.9% (537,259) 0 0 $20.01

Midtown Atlanta 38 15,532,066 2,268,067 2,720,943 17.5% 338,100 548,039 719,003 $22.84

North Fulton 108 16,177,876 2,091,695 2,541,957 15.7% 18,507 163,000 0 $19.99

Northeast Atlanta 62 7,234,562 1,340,927 1,433,888 19.8% (17,073) 108,696 0 $19.68

Northlake 16 2,242,320 209,287 226,014 10.1% (9,700) 0 0 $21.17

Northwest Atlanta 77 17,492,611 2,175,779 2,638,195 15.1% (42,446) 60,000 34,060 $20.96

South Atlanta 19 1,493,024 499,859 514,591 34.5% 168,104 301,547 21,000 $21.69

West Atlanta 1 71,500 5,580 5,580 7.8% 10 0 0 $25.34
1,696,648 $21.91
Totals 477 109,995,060 17,854,025 20,472,837 18.6% (558,678) 2,239,333

Source: CoStar Property®

Class B Market Statistics Year-End 2009

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries
Market # Blds Total RBA Direct SF Vac % Const SF Rates
13,914
Buckhead 79 4,796,504 664,134 706,499 14.7% (57,365) 0 $19.28

Central Perimeter 225 8,831,917 1,602,193 1,786,673 20.2% (372,158) 0 0 $18.95

Downtown Atlanta 121 14,688,587 604,909 620,435 4.2% (64,447) 0 0 $16.08

Midtown Atlanta 117 5,991,446 634,988 714,665 11.9% (184,187) 0 0 $17.88

North Fulton 798 15,038,097 2,918,726 3,128,777 20.8% (384,696) 181,681 0 $16.07

Northeast Atlanta 1,076 17,064,715 3,517,323 3,705,124 21.7% (54,254) 94,132 7,134 $15.48

Northlake 619 17,691,074 2,044,658 2,096,794 11.9% (228,345) 88,400 6,000 $17.41

Northwest Atlanta 972 20,603,122 3,956,369 4,117,589 20.0% (223,392) 203,506 22,650 $17.08

South Atlanta 641 11,885,766 1,575,462 1,586,900 13.4% 74,826 84,384 0 $16.90

West Atlanta 145 1,989,676 352,756 356,475 17.9% 37,899 31,234 0 $16.72
4,793 697,251 35,784 $16.84
Totals 118,580,904 17,871,518 18,819,931 15.9% (1,456,119)

Source: CoStar Property®

12 THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

YEAR-END 2009 – ATLANTA

Atlanta Office Market

FIGURES AT A GLANCE

Class C Market Statistics Year-End 2009

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries
Market # Blds Total RBA Direct SF Vac % Const SF Rates
0
Buckhead 267 1,926,578 143,052 153,802 8.0% (19,283) 0 $21.85

Central Perimeter 396 3,498,605 741,740 753,737 21.5% (68,859) 0 0 $13.98

Downtown Atlanta 199 5,188,325 944,013 947,213 18.3% (47,075) 0 0 $16.20

Midtown Atlanta 188 1,578,753 194,976 207,400 13.1% (80,967) 0 0 $14.53

North Fulton 731 3,765,314 418,351 437,930 11.6% (162,793) 0 0 $15.54

Northeast Atlanta 1,019 5,692,279 764,246 770,104 13.5% (156,601) 0 0 $13.89

Northlake 1,364 8,152,527 761,309 761,309 9.3% (156,026) 0 0 $14.76

Northwest Atlanta 1,287 7,296,638 948,246 953,250 13.1% (123,838) 880 0 $14.93

South Atlanta 930 5,645,344 880,120 884,083 15.7% (36,759) 0 0 $14.52

West Atlanta 246 2,482,357 865,644 865,644 34.9% (25,986) 0 0 $11.85
6,627 45,226,720 6,661,697 6,734,472 14.9% (878,187) 880 0 $14.76
Totals

Source: CoStar Property®

Total Office Market Statistics Year-End 2009

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries
Market # Blds Total RBA Direct SF Vac % Const SF Rates
1,071,965
Buckhead 395 20,615,187 3,718,351 3,916,433 19.0% (19,752) 922,585 $24.94

Central Perimeter 700 32,846,958 5,814,348 6,519,248 19.8% (974,834) 0 0 $20.51

Downtown Atlanta 348 35,219,472 4,430,173 4,924,347 14.0% (648,781) 0 0 $18.89

Midtown Atlanta 343 23,102,265 3,098,031 3,643,008 15.8% 72,946 548,039 719,003 $21.57

North Fulton 1,637 34,981,287 5,428,772 6,108,664 17.5% (528,982) 344,681 0 $17.86

Northeast Atlanta 2,157 29,991,556 5,622,496 5,909,116 19.7% (227,928) 202,828 7,134 $16.58

Northlake 1,999 28,085,921 3,015,254 3,084,117 11.0% (394,071) 88,400 6,000 $17.10

Northwest Atlanta 2,336 45,392,371 7,080,394 7,709,034 17.0% (389,676) 264,386 56,710 $18.25

South Atlanta 1,590 19,024,134 2,955,441 2,985,574 15.7% 206,171 385,931 21,000 $17.14

West Atlanta 392 4,543,533 1,223,980 1,227,699 27.0% 11,923 31,234 0 $14.62
11,897 2,937,464 1,732,432 $19.14
Totals 273,802,684 42,387,240 46,027,240 16.8% (2,892,984)

Source: CoStar Property®

©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 13

ATLANTA – YEAR-END 2009

Atlanta Office Market

FIGURES AT A GLANCE

Class A Submarket Statistics Year-End 2009

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries Const SF Rates
Market # Blds Total RBA Direct SF 0 Vac %
Barrow County 0 0.0% 0 0
00 0.0% 0 0 0 $0.00
0.0% 0 0
Bartow County 0 0 0 0 (533,817) 0 0 $0.00
19.4% 9,316 0
Butts County 0 000 2.8% 25,100 60,000 0 $0.00
(17,663) 0
Central Perimeter 79 20,516,436 3,470,415 3,978,838 32.1% 0 0 0 $21.79
14.8% 34,545 0
Chamblee/Dville/N D Hills 6 781,092 14,266 21,750 0 0 0 $18.26
0.0% (537,259) 0
Cherokee County 2 114,592 36,800 36,800 5.1% (33,066) 108,696 34,060 $25.73
0.0% 0 0
Cumberland/Galleria 62 15,975,859 1,907,348 2,360,291 21.9% 36,043 26,000 0 $20.80
21.2% 0 0
Dawson County 0 000 0.0% 0 0 0 $0.00
51.6% (48,206) 0
Decatur 6 911,859 46,696 46,696 0.0% 0 0 0 $22.24
0.0% (49,883) 0
Douglasville/Lithia Sprng 0 000 71.6% 0 0 0 $0.00
0.0% 41,643 0
Downtown Atlanta 28 15,342,560 2,881,251 3,356,699 17.2% 0 0 0 $20.01
0.0% 0 0
Duluth/Suwanee/Buford 33 4,444,851 924,414 943,009 18.5% 269,535 548,039 0 $20.13
0.0% 0 0
East Cobb 0 000 0.0% 18,507 163,000 0 $0.00
17.1% 0 0
Fayette/Coweta County 6 364,000 187,974 187,974 0.0% (25,650) 0 0 $24.65
15.7% 132,061 275,547
Haralson County 0 000 0.0% (5,355) 0 0 $0.00
17.4% 68,565 0
Heard County 0 000 27.4% 0 0 0 $0.00
18.8% 0 0
I-20 East/Conyers 2 102,544 73,448 73,448 31.3% 0 0 0 $23.35
0.0% 0 0
Jasper County 0 000 0.0% 0 0 0 $0.00
66.7% 56,896 1,058,051
Kennesaw/Town Center 13 1,402,160 231,631 241,104 0.0% 10 0 0 $21.34
0.0% 0 0
Lamar County 0 000 22.0% 0 0 0 $0.00
7.8% 0 0
Lawrenceville/Lilburn 4 406,128 75,070 75,070 0.0% (558,678) 2,239,333 0 $21.00
0.0%
Lower Buckhead 0 000 0.0% 0 $0.00
18.6%
Meriwether County 0 000 0 $0.00

Midtown/Pershing Point 36 15,098,066 2,132,359 2,585,235 719,003 $22.90

Monroe County 0 000 0 $0.00

N Fulton/Forsyth County 108 16,177,876 2,091,695 2,541,957 0 $19.99

Newton County 0 000 0 $0.00

Norcross/Ptree Corners 25 2,383,583 341,443 415,809 0 $18.78

North Clayton/Airport 12 1,084,024 281,885 296,617 21,000 $20.89

Northlake/Lavista 2 446,825 74,877 84,120 0 $19.14

Northside Dr/Georgia Tech 2 434,000 135,708 135,708 0 $21.34

Pickens County 0 0 0 0 0 $0.00

Pike County 0 000 0 $0.00

South Clayton/Henry Cnty 1 45,000 30,000 30,000 0 $16.00

Spalding County 0 000 0 $0.00

Stone Mountain 0 000 0 $0.00

Upper Buckhead 49 13,892,105 2,911,165 3,056,132 922,585 $26.12

Villa Rica/West Outlying 1 71,500 5,580 5,580 0 $25.34

W Carroll County 0 000 0 $0.00

Walton County 0 0 0 0 0 $0.00

West Atlanta 0 000 0 $0.00

Totals 477 109,995,060 17,854,025 20,472,837 1,696,648 $21.91

Source: CoStar Property®

14 THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

YEAR-END 2009 – ATLANTA

Atlanta Office Market
FIGURES AT A GLANCE

Class B Submarket Statistics Year-End 2009

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries Const SF Rates
Market # Blds Total RBA Direct SF 19,383 Vac %
Barrow County 19,383 20.8% (3,583) 0
18 93,002 26.5% (29,627) 0 0 $16.10
0
Bartow County 34 455,594 120,524 120,524 0.0% 0 0 0 $18.70
20.2% (372,158) 82,400
Butts County 4 22,707 0 0 10.7% 95,442 0 $0.00
20.5% (48,113) 0
Central Perimeter 225 8,831,917 1,602,193 1,786,673 19.6% (25,111) 0 0 $18.95
(81,936) 0
Chamblee/Dville/N D Hills 201 8,079,273 824,490 867,126 8.0% 13,075 13,234 0 $17.61
6.3% (18,027) 0
Cherokee County 189 1,751,178 355,864 358,551 17.5% 12,658 67,369 0 $19.37
4.2% (64,447) 0
Cumberland/Galleria 254 11,290,024 2,100,461 2,210,608 18.2% 162,876 32,584 6,000 $16.74
14.1% 19,707 0
Dawson County 13 160,983 12,948 12,948 16.7% (33,023) 0 0 $19.80
0.0% 6,000
Decatur 109 3,221,682 193,002 202,502 0.0% 0 0 0 $19.64
15.9% 0 108,064
Douglasville/Lithia Sprng 97 1,224,221 212,234 213,826 0.0% 20,929 0 0 $17.07
22.3% 0 26,763
Downtown Atlanta 121 14,688,587 604,909 620,435 0.0% (103,814) 0 0 $16.08
21.9% 0 0
Duluth/Suwanee/Buford 514 7,343,123 1,283,693 1,338,455 14.4% (9,234) 0 7,134 $16.52
0.0% (27,495) 0
East Cobb 131 1,784,180 240,949 251,549 10.8% 0 181,681 0 $16.28
0.0% (135,495) 0
Fayette/Coweta County 255 3,001,569 492,930 501,128 20.9% 0 0 0 $18.23
18.8% (397,771) 36,800
Haralson County 1 1,500 0 0 25.9% 5,810 0 0 $0.00
10.1% (158,225) 0
Heard County 1 11,996 0 0 17.1% 82,575 0 0 $0.00
24.4% (220,812) 0
I-20 East/Conyers 158 1,904,173 302,569 302,569 13.6% (48,692) 15,000 6,000 $17.32
0.0% (2,611) 0
Jasper County 0 000 17.1% 0 0 0 $0.00
28.8% 27,998 13,914
Kennesaw/Town Center 346 5,183,493 1,119,745 1,157,531 8.1% (2,724) 0 16,650 $17.17
14.9% 31,868 0
Lamar County 1 4,396 0 0 12.9% (29,870) 0 0 $18.51
13.4% (5,676) 18,000
Lawrenceville/Lilburn 284 2,904,713 624,607 635,796 16.5% (5,407) 697,251 0 $17.04
22.0% (46,088)
Lower Buckhead 14 1,669,403 221,924 241,108 15.9% 36,324 0 $18.81
(1,456,119)
Meriwether County 1 2,066 0 0 0 $0.00

Midtown/Pershing Point 96 5,500,883 527,805 595,107 0 $17.81

Monroe County 0 000 0 $0.00

N Fulton/Forsyth County 785 14,877,114 2,905,778 3,115,829 0 $16.02

Newton County 18 102,831 19,312 19,312 0 $16.02

Norcross/Ptree Corners 209 6,412,871 1,538,313 1,660,163 0 $14.19

North Clayton/Airport 201 6,297,382 635,121 635,121 0 $15.03

Northlake/Lavista 104 3,875,949 664,219 664,219 0 $16.87

Northside Dr/Georgia Tech 21 490,563 107,183 119,558 0 $18.72

Pickens County 18 138,653 18,826 18,826 0 $8.92

Pike County 0 000 0 $0.00

South Clayton/Henry Cnty 163 2,441,422 413,995 417,235 0 $18.61

Spalding County 16 116,224 33,416 33,416 0 $9.45

Stone Mountain 29 507,166 41,066 41,066 0 $13.87

Upper Buckhead 65 3,127,101 442,210 465,391 0 $19.52

Villa Rica/West Outlying 20 209,663 26,948 26,948 0 $11.28

W Carroll County 7 40,347 5,407 5,407 0 $8.00

Walton County 51 311,006 51,327 51,327 0 $12.73

West Atlanta 19 501,949 108,167 110,294 0 $18.87

Totals 4,793 118,580,904 17,871,518 18,819,931 35,784 $16.84

Source: CoStar Property®

©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 15

ATLANTA – YEAR-END 2009

Atlanta Office Market
FIGURES AT A GLANCE

Class C Submarket Statistics Year-End 2009

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries Const SF Rates
Market # Blds Total RBA Direct SF 15,120 Vac %
Barrow County 15,120 25.1% (10,795) 0
21 60,231 (8,820) 0 0 $11.62
(800) 0
Bartow County 69 269,591 38,548 38,548 14.3% 0 0 $13.79
(68,859) 0
Butts County 4 16,407 800 800 4.9% (76,330) 0 0 $14.57
(49,225) 0
Central Perimeter 396 3,498,605 741,740 753,737 21.5% (41,713) 0 0 $13.98
0
Chamblee/Dville/N D Hills 364 2,674,739 322,284 322,284 12.0% (4,001) 0 0 $14.81
(57,092) 0
Cherokee County 194 1,123,267 136,036 140,184 12.5% (44,862) 0 0 $15.06
(47,075) 0
Cumberland/Galleria 314 2,341,687 344,574 344,924 14.7% (45,279) 0 0 $13.25
(20,337) 0
Dawson County 11 107,971 4,001 4,001 3.7% (10,931) 0 0 $9.53
0
Decatur 280 2,079,932 120,313 120,313 5.8% 0 0 0 $17.18
0 880
Douglasville/Lithia Sprng 146 809,465 169,296 169,296 20.9% (13,003) 0 0 $12.48
0 0
Downtown Atlanta 199 5,188,325 944,013 947,213 18.3% 38,757 0 0 $16.20
0 0
Duluth/Suwanee/Buford 307 1,793,523 179,787 185,545 10.3% (25,236) 0 0 $14.60
(7,333) 0
East Cobb 164 915,795 136,580 136,580 14.9% 0 0 0 $13.53
(65,573) 0
Fayette/Coweta County 296 1,570,443 172,589 172,589 11.0% 0 0 0 $16.65
(158,792) 0
Haralson County 5 7,052 0 0 0.0% 4,840 0 0 $0.00
(57,852) 0
Heard County 1 3,703 3,703 3,703 100.0% 10,447 0 0 $15.32
(9,261) 0
I-20 East/Conyers 283 1,329,442 134,496 134,496 10.1% (15,394) 0 0 $14.50
(42,500) 0
Jasper County 1 6,000 6,000 6,000 100.0% 0 0 0 $0.00
5,181 0
Kennesaw/Town Center 529 2,542,153 245,762 246,268 9.7% (40,656) 0 0 $15.97
(5,180) 0
Lamar County 1 7,500 0 0 0.0% (11,950) 0 0 $0.00
6,078 0
Lawrenceville/Lilburn 433 2,073,329 270,299 270,299 13.0% 6,024 880 0 $15.56
(17,439)
Lower Buckhead 26 261,243 20,263 22,363 8.6% 6,774 0 $17.04
(878,187)
Meriwether County 4 13,516 3,264 3,264 24.1% 0 $0.00

Midtown/Pershing Point 143 1,142,321 138,985 151,409 13.3% 0 $13.59

Monroe County 1 5,314 0 0 0.0% 0 $0.00

N Fulton/Forsyth County 720 3,657,343 414,350 433,929 11.9% 0 $15.63

Newton County 40 249,868 18,193 18,193 7.3% 0 $17.34

Norcross/Ptree Corners 210 1,553,244 259,601 259,701 16.7% 0 $11.92

North Clayton/Airport 391 2,757,008 529,916 533,879 19.4% 0 $13.35

Northlake/Lavista 206 933,226 91,817 91,817 9.8% 0 $12.43

Northside Dr/Georgia Tech 45 436,432 55,991 55,991 12.8% 0 $16.45

Pickens County 17 104,145 46,746 46,746 44.9% 0 $28.61

Pike County 4 171,804 0 0 0.0% 0 $0.00

South Clayton/Henry Cnty 176 899,509 102,124 102,124 11.4% 0 $15.96

Spalding County 52 197,843 65,427 65,427 33.1% 0 $13.59

Stone Mountain 191 885,320 74,206 74,206 8.4% 0 $13.92

Upper Buckhead 241 1,665,335 122,789 131,439 7.9% 0 $22.16

Villa Rica/West Outlying 40 208,415 49,950 49,950 24.0% 0 $13.56

W Carroll County 23 152,685 48,201 48,201 31.6% 0 $4.95

Walton County 48 211,952 39,439 39,439 18.6% 0 $10.94

West Atlanta 31 1,301,037 594,494 594,494 45.7% 0 $12.87
Totals 6,627 45,226,720 6,661,697 6,734,472 14.9%
0 $14.76

Source: CoStar Property®

16 THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

YEAR-END 2009 – ATLANTA

Atlanta Office Market

FIGURES AT A GLANCE

Total Office Submarket Statistics Year-End 2009

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries Const SF Rates
Market # Blds Total RBA Direct SF 34,503 Vac %
Barrow County 34,503 22.5% (14,378) 0
39 153,233 (38,447) 0 0 $13.53
0
Bartow County 103 725,185 159,072 159,072 21.9% (800) 0 0 $17.60
(974,834) 82,400
Butts County 8 39,114 800 800 2.0% (115,127) 155,442 0 $14.57
0
Central Perimeter 700 32,846,958 5,814,348 6,519,248 19.8% (49,236) 0 0 $20.51
(141,312) 0
Chamblee/Dville/N D Hills 571 11,535,104 1,161,040 1,211,160 10.5% 13,234 0 $16.89
9,074 0
Cherokee County 385 2,989,037 528,700 535,535 17.9% (40,574) 176,065 34,060 $19.09
(32,204) 0
Cumberland/Galleria 630 29,607,570 4,352,383 4,915,823 16.6% (648,781) 58,584 6,000 $18.50
84,531 0
Dawson County 24 268,954 16,949 16,949 6.3% 0 0 $18.26
(630) 6,000
Decatur 395 6,213,473 360,011 369,511 5.9% (7,911) 0 0 $19.53
108,944
Douglasville/Lithia Sprng 243 2,033,686 381,530 383,122 18.8% 0 0 0 $15.04
0 26,763
Downtown Atlanta 348 35,219,472 4,430,173 4,924,347 14.0% (40,280) 0 0 $18.89
0 0
Duluth/Suwanee/Buford 854 13,581,497 2,387,894 2,467,009 18.2% (114,940) 548,039 7,134 $18.03
0 0
East Cobb 295 2,699,975 377,529 388,129 14.4% 7,173 344,681 0 $15.35
(34,828) 0
Fayette/Coweta County 557 4,936,012 853,493 861,691 17.5% 0 0 0 $19.04
68,467 312,347
Haralson County 6 8,552 0 0 0.0% 0 0 0 $0.00
(538,056) 0
Heard County 2 15,699 3,703 3,703 23.6% 10,650 0 0 $15.32
(241,727) 0
I-20 East/Conyers 443 3,336,159 510,513 510,513 15.3% 225,083 15,000 6,000 $17.41
(235,428) 0
Jasper County 1 6,000 6,000 6,000 100.0% 4,479 0 0 $0.00
(45,111) 1,071,965
Kennesaw/Town Center 888 9,127,806 1,597,138 1,644,903 18.0% 0 0 16,650 $17.69
33,179 0
Lamar County 2 11,896 0 0 0.0% (43,380) 0 0 $18.51
26,688 18,000
Lawrenceville/Lilburn 721 5,384,170 969,976 981,165 18.2% 15,076 2,937,464 0 $16.89
412
Lower Buckhead 40 1,930,646 242,187 263,471 13.6% 617 0 $18.76
(63,527)
Meriwether County 5 15,582 3,264 3,264 20.9% 43,098 0 $0.00
(2,892,984)
Midtown/Pershing Point 275 21,741,270 2,799,149 3,331,751 15.3% 719,003 $21.72

Monroe County 1 5,314 0 0 0.0% 0 $0.00

N Fulton/Forsyth County 1,613 34,712,333 5,411,823 6,091,715 17.5% 0 $17.85

Newton County 58 352,699 37,505 37,505 10.6% 0 $16.74

Norcross/Ptree Corners 444 10,349,698 2,139,357 2,335,673 22.6% 0 $15.21

North Clayton/Airport 604 10,138,414 1,446,922 1,465,617 14.5% 21,000 $15.93

Northlake/Lavista 312 5,256,000 830,913 840,156 16.0% 0 $16.57

Northside Dr/Georgia Tech 68 1,360,995 298,882 311,257 22.9% 0 $19.48

Pickens County 35 242,798 65,572 65,572 27.0% 0 $25.65

Pike County 4 171,804 0 0 0.0% 0 $0.00

South Clayton/Henry Cnty 340 3,385,931 546,119 549,359 16.2% 0 $17.86

Spalding County 68 314,067 98,843 98,843 31.5% 0 $11.78

Stone Mountain 220 1,392,486 115,272 115,272 8.3% 0 $13.90

Upper Buckhead 355 18,684,541 3,476,164 3,652,962 19.6% 922,585 $25.30

Villa Rica/West Outlying 61 489,578 82,478 82,478 16.8% 0 $13.19

W Carroll County 30 193,032 53,608 53,608 27.8% 0 $5.07

Walton County 99 522,958 90,766 90,766 17.4% 0 $11.74

West Atlanta 50 1,802,986 702,661 704,788 39.1% 0 $16.94
Totals 11,897 273,802,684 42,387,240 46,027,240 16.8%
1,732,432 $19.14

Source: CoStar Property®

©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 17

ATLANTA – YEAR-END 2009

Atlanta Office Market

FIGURES AT A GLANCE

Class A Market Statistics Year-End 2009

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries
Market # Blds Total RBA Direct SF Vac % Const SF Rates
0
CBD 28 15,342,560 2,881,251 3,356,699 21.9% (537,259) 0 $20.01

Suburban 449 94,652,500 14,972,774 17,116,138 18.1% (21,419) 2,239,333 1,696,648 $22.21
477 109,995,060 18.6% (558,678) 2,239,333 1,696,648 $21.91
Totals 17,854,025 20,472,837

Source: CoStar Property®

Class B Market Statistics Year-End 2009

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries
Market # Blds Total RBA Direct SF Vac % Const SF Rates
0
CBD 121 14,688,587 604,909 620,435 4.2% (64,447) 0 $16.08

Suburban 4,672 103,892,317 17,266,609 18,199,496 17.5% (1,391,672) 697,251 35,784 $16.88
4,793 118,580,904 15.9% (1,456,119) 697,251 35,784 $16.84
Totals 17,871,518 18,819,931

Source: CoStar Property®

Class C Market Statistics Year-End 2009

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries
Market # Blds Total RBA Direct SF Vac % Const SF Rates

CBD 199 5,188,325 944,013 947,213 18.3% (47,075) 0 0 $16.20

Suburban 6,428 40,038,395 5,717,684 5,787,259 14.5% (831,112) 880 0 $14.64
6,627 45,226,720 6,661,697 6,734,472 14.9% (878,187) 880 0 $14.76
Totals

Source: CoStar Property®

Class A & B Market Statistics Year-End 2009

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries
Market # Blds Total RBA Direct SF Vac % Const SF Rates

CBD 149 30,031,147 3,486,160 3,977,134 13.2% (601,706) 0 0 $19.15

Suburban 5,121 198,544,817 32,239,383 35,315,634 17.8% (1,413,091) 2,936,584 1,732,432 $19.72
5,270 228,575,964 17.2% (2,014,797) 2,936,584 1,732,432 $19.67
Totals 35,725,543 39,292,768

Source: CoStar Property®

Total Office Market Statistics Year-End 2009

Existing Inventory Vacancy YTD Net YTD Under Quoted
Total SF Absorption Deliveries Const SF Rates
Market # Blds Total RBA Direct SF Vac %
0
CBD 348 35,219,472 4,430,173 4,924,347 14.0% (648,781) 0 $18.89

Suburban 11,549 238,583,212 37,957,067 41,102,893 17.2% (2,244,203) 2,937,464 1,732,432 $19.16
11,897 273,802,684 16.8% (2,892,984) 2,937,464 1,732,432 $19.14
Totals 42,387,240 46,027,240

Source: CoStar Property®

18 THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

YEAR-END 2009 – ATLANTA

Atlanta Office Market

FIGURES AT A GLANCE

Class A Market Statistics Year-End 2009

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

2009 4q 477 109,995,060 17,854,025 20,472,837 18.6% (422,147) 1 60,000 5 1,696,648 $21.91
2009 3q 476 109,935,060 17,323,114 19,990,690 18.2% (20,363) 4 1,295,143 6 1,756,648 $22.10
2009 2q 472 108,639,917 16,018,355 18,675,184 17.2% 5 10 3,051,791 $22.43
2009 1q 467 107,802,886 15,208,575 17,716,020 16.4% (122,133) 1 837,031 14 3,828,822 $22.91
2008 4q 466 107,755,727 15,197,547 17,674,826 16.4% 5,965 6 47,159 13 3,820,921 $23.20
2008 3q 460 106,849,528 14,988,869 17,151,453 16.1% 4 18 4,598,724 $23.21
2008 2q 456 106,436,129 14,649,840 16,679,365 15.7% 382,826 5 906,199 20 4,877,427 $23.26
2008 1q 451 105,413,793 13,908,821 15,859,191 15.0% (58,689) 5 413,399 22 5,689,612 $23.41
446 105,081,554 13,468,590 14,970,314 14.2% 202,162 13 1,022,336 23 5,306,523 $23.14
2007 433 102,588,775 14,104,173 15,541,729 15.1% (556,638) 9 332,239 16 3,586,888 $21.51
2006 425 101,076,844 14,463,252 16,276,009 16.1% 3,064,194 6 2,492,779 15 3,420,204 $20.99
2005 419 100,010,962 15,185,993 17,427,397 17.4% 2,246,211 5 1,592,685 7 1,813,527 $20.70
2004 414 16,603,155 19,871,445 20.0% 2,217,270 11 1,065,882 6 1,737,831 $20.67
2003 403 99,301,127 14,593,649 18,898,201 19.5% 3,153,883 16 709,835 13 2,638,362 $21.43
2002 387 97,100,659 10,407,149 14,036,547 15.2% 1,227,224 38 2,200,468 22 6,174,596 $22.77
2001 349 92,590,696 (351,691) 31 4,509,963 46 11,130,071 $23.19
2000 84,527,345 5,834,566 7,503,671 8.9% 1,530,475 8,063,351
5,709,425 5,568,611

Source: CoStar Property®

Class B Market Statistics Year-End 2009

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

2009 4q 4,793 118,580,904 17,871,518 18,819,931 15.9% (18,095) 2 35,076 4 35,784 $16.84
2009 3q 4,791 118,545,828 17,815,460 18,766,760 15.8% (260,093) 17 137,542 6 70,860 $16.93
2009 2q 4,774 118,408,286 17,428,824 18,369,125 15.5% (876,925) 13 199,972 23 208,402 $17.18
2009 1q 4,761 118,208,314 16,663,952 17,292,228 14.6% (301,006) 30 324,661 31 350,055 $17.36
2008 4q 4,731 117,883,653 15,940,969 16,666,561 14.1% (179,007) 30 456,888 57 596,985 $17.65
2008 3q 4,701 117,426,765 15,304,625 16,030,666 13.7% 29 200,533 72 926,703 $17.70
2008 2q 4,672 117,226,232 15,141,000 15,773,040 13.5% (57,093) 22 537,800 91 1,040,084 $17.64
2008 1q 4,650 116,688,432 14,968,198 15,698,619 13.5% 463,379 63 556,608 85 1,299,987 $17.56
4,587 116,131,824 14,660,353 15,432,272 13.3% 290,261 272 3,360,946 120 1,494,642 $17.36
2007 4,325 113,185,729 13,198,984 13,703,903 12.1% 1,217,726 216 2,790,630 222 2,710,106 $16.44
2006 4,110 110,533,374 13,565,897 14,419,271 13.0% 3,367,723 188 2,485,858 177 2,377,563 $16.19
2005 3,925 108,331,150 13,888,864 14,975,699 13.8% 2,758,652 166 1,802,539 151 2,338,178 $16.00
2004 3,763 106,566,084 13,282,605 14,604,892 13.7% 1,394,259 112 1,352,262 117 1,297,922 $15.65
2003 3,652 105,242,393 11,882,879 13,548,109 12.9% 266,908 116 1,760,289 93 1,122,448 $16.39
2002 3,536 103,482,104 11,834,609 13,564,164 13.1% 1,776,344 146 2,730,295 110 1,664,242 $17.19
2001 3,394 100,877,463 10,191,655 10.1% (767,868) 150 3,565,207 133 2,658,253 $17.07
2000 9,037,860 3,228,660

Source: CoStar Property®

Total Office Market Statistics Year-End 2009

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

2009 4q 11,897 273,802,684 42,387,240 46,027,240 16.8% (535,384) 3 95,076 9 1,732,432 $19.14
2009 3q 11,894 273,707,608 41,713,014 45,396,780 16.6% (523,538) 21 1,432,685 12 1,827,508 $19.21
2009 2q 11,873 272,274,923 39,797,316 43,440,557 16.0% (1,332,256) 19 1,037,883 33 3,260,193 $19.51
2009 1q 11,854 271,237,040 37,890,696 41,070,418 15.1% (501,806) 31 46 4,179,757 $19.99
2008 4q 11,824 270,878,689 36,952,630 40,210,261 14.8% 103,514 36 371,820 71 4,418,786 $20.30
2008 3q 11,788 269,515,602 36,012,986 38,950,688 14.5% (316,222) 33 1,363,087 91 5,526,307 $20.42
2008 2q 11,755 268,901,670 35,333,588 38,020,534 14.1% 475,572 27 111 5,917,511 $20.46
2008 1q 11,728 267,341,534 34,220,687 36,935,970 13.8% (168,388) 69 613,932 107 6,989,599 $20.54
11,674 266,651,079 33,772,003 36,077,127 13.5% 3,501,222 287 1,560,136 144 6,812,084 $20.26
2007 11,399 261,277,731 32,223,107 34,205,001 13.1% 5,332,445 233 239 6,301,168 $18.77
2006 11,170 257,086,935 32,607,913 35,346,650 13.7% 5,476,256 221 899,766 198 5,825,850 $18.42
2005 10,957 253,746,991 34,055,317 37,482,962 14.8% 5,001,162 209 5,859,199 181 4,271,287 $18.02
2004 10,757 251,274,621 35,304,270 40,011,754 15.9% 1,810,068 160 4,417,843 148 3,267,206 $18.13
2003 10,600 247,582,788 31,991,012 38,129,989 15.4% 1,538,493 191 3,697,588 134 3,950,033 $19.00
2002 10,411 240,854,759 27,382,664 32,940,453 13.7% (287,002) 275 2,856,012 173 8,206,050 $19.90
2001 10,141 229,569,508 18,448,250 21,368,200 9,551,497 338 3,799,639 247 14,289,645 $19.75
2000 9.3% 6,749,029
11,412,105
10,067,151

Source: CoStar Property®

©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 19

ATLANTA – YEAR-END 2009

Atlanta Office Market

LEASING ACTIVITY

Leasing Highlights in Select CoStar Markets
Color Coded by Vacancy Rate

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Source: CoStar Property® ��� �� ���

20 THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

YEAR-END 2009 – ATLANTA

Atlanta Office Market

LEASING ACTIVITY

Historical Rental Rates A B C Total Market

Based on Full-Service Equivalent Rental RatesDollars/SF/Year

$25.00
$20.00
$15.00
$10.00

$5.00
$0.00

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

1986
1987
1988
1989
1989
1990
1991
1992
1992
1993
1994
1995
1995
1996
1997
1998
1998
1999
2000
2001
2001
2002
2003
2004
2004
2005
2006
2007
2007
2008
2009

Source: CoStar Property®

Vacancy by Available Space Type Vacancy by Class

Percent of All Vacant Space in Direct vs. Sublet Percent of All Vacant Space by Class

Atlanta United States Atlanta United States

8% 7% 15% 14%
92% 93%
41% 47%

44% 39%

Direct Sublet Direct Sublet Class A Class B Class C Class A Class B Class C

Source: CoStar Property® Source: CoStar Property®

U.S. Rental Rate Comparison Future Space Available

Based on Full-Service Equivalent Rental Rates Space Scheduled to be Available for Occupancy*

Atlanta United States 3.0 2.77

$30.00 2.5

$25.00

$20.00 2.0
Dollars/SF/Year 1.5 1.37
Millions$15.00

$10.00 1.0

$5.00 0.5

$0.00 0.15 0.00 0.00 0.00
2011 1q 2011 2q
2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 0.0
3q 4q 1q 2q 3q 4q 1q 2q 3q 4q
2010 1q 2010 2q 2010 3q 2010 4q

Source: CoStar Property® * Includes Under Construction Spaces Source: CoStar Property®

©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 21

ATLANTA – YEAR-END 2009

Atlanta Office Market

LEASING ACTIVITY

Select Top Office Leases Based on Leased Square Footage For Deals Signed in 2009

Building Submarket SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company

1 Marquis Two Tower Downtown Atlanta 254,619 2nd SunTrust Bank Cushman & Wakefield of Georgia, Inc CB Richard Ellis

2 3120 Breckenridge Blvd* Duluth/Suwanee/Buford 190,000 2nd Primerica Financial Services, Inc. N/A N/A

3 2651 Satellite Blvd* Duluth/Suwanee/Buford 182,956 4th NCR Corporation CB Richard Ellis Satellite Realty Holdings

4 River Ridge I* Central Perimeter 135,000 2nd Affiliated Computer Services, Inc Jones Lang LaSalle N/A

5 Perimeter Center Central Perimeter 127,823 3rd Atlanta Journal & Constitution CB Richard Ellis Colliers Spectrum Cauble, Inc.

6 Two Alliance Center Upper Buckhead 126,013 3rd Marsh & McLennan Companies Cushman & Wakefield of Georgia, Inc Tishman Speyer

7 One Deerfield Centre N Fulton/Forsyth County 115,810 2nd Philips Consumer Electronics CB Richard Ellis Hines

8 Stonebridge III* N Fulton/Forsyth County 113,264 4th Delta Dental Insurance Company ICON Commercial Interests, LLC Jones Lang LaSalle

9 Falls Pointe* Central Perimeter 106,680 2nd RBS Lynk Newmark Knight Frank Parkway Realty Services, Inc.

10 Satellite Place - Bldg 700 Duluth/Suwanee/Buford 104,787 3rd NCR Corporation N/A Crescent Resources, LLC

11 NetBank Office N Fulton/Forsyth County 96,900 2nd Kaplan Education N/A Grubb & Ellis

12 9000 Central Park W Central Perimeter 91,612 3rd Cox Enterprises CB Richard Ellis Ackerman & Co.

13 Marquis One Tower Downtown Atlanta 84,335 1st UnitedStatesNuclearRegulatoryCommission General Services Administration CB Richard Ellis

14 9 Piedmont Center* Upper Buckhead 82,308 3rd Kaiser Permanente Jones Lang LaSalle PC Management Company

15 Sugarloaf - Service Center I* Duluth/Suwanee/Buford 70,980 1st IKON Office Solutions, Inc. N/A N/A

16 500 Northpark* Central Perimeter 70,218 4th Oracle Corporation CresaPartners of Georgia, LLC CB Richard Ellis

17 American Cancer Society Center* Downtown Atlanta 70,185 1st Global Crossing Ltd. Cushman & Wakefield, Inc. Cousins Real Estate Corporation

18 Atlanta Financial Center - South Tower* Upper Buckhead 69,783 4th SunTrust Robinson Humphrey Studley Inc. Hines

19 Satellite Place - Bldg 800 Duluth/Suwanee/Buford 69,312 3rd Stiefel Laboratories, Inc. Jones Lang LaSalle Colliers Spectrum Cauble, Inc.

20 10 Piedmont Center* Upper Buckhead 59,705 3rd Kaiser Permanente Jones Lang LaSalle PC Management Company

21 Concourse Corporate Center One* Central Perimeter 58,033 1st Simmons Bedding Company Jones Lang LaSalle Cousins Properties Incorporated

22 2651 Satellite Blvd Duluth/Suwanee/Buford 57,000 3rd NCR Corporation CB Richard Ellis Satellite Realty Holdings

23 Parkview I at Opus Woods* N Fulton/Forsyth County 56,472 3rd Spherion Corporation CB Richard Ellis Grubb & Ellis

24 Rosser International Building* Downtown Atlanta 55,412 1st Rosser International, Inc. N/A N/A

25 Marquis Two Tower* Downtown Atlanta 53,700 2nd Parker, Hudson, Rainer & Dobbs LLP Raney Real Estate CB Richard Ellis

26 One Midtown Plaza Midtown/Pershing Point 52,521 2nd AECOM CB Richard Ellis Tishman Speyer

27 Terminus 200 Upper Buckhead 49,879 2nd Firethorn Wm. Leonard & Company Cousins Properties Incorporated

28 Satellite Place - Bldg 800 Duluth/Suwanee/Buford 45,347 3rd NCR Corporation CB Richard Ellis Lavista Associates, Inc.

29 190 Technology Pky* Norcross/P’tree Corners 37,762 2nd Financial Freedom N/A N/A

30 Brookside 800 N Fulton/Forsyth County 35,860 1st Coyote Logistics N/A The Alter Group

31 RiverEdge One* Cumberland/Galleria 35,639 4th AssuranceAmerica Corporation. The Stephen W. Wright Company Barry Real Estate Companies

32 SunTrust Plaza Garden Offices* Downtown Atlanta 34,826 1st Newcomb & Boyd Portman Management Company Portman Management Company

33 1957 Lakeside Centre* Northlake/Lavista 33,984 3rd Laboratory Corporation of America Cauley Properties TPA Realty Services, LLC

34 222 Chastain Kennesaw/Town Center 32,706 4th N/A N/A Resource Real Estate Partners

35 Johns Creek - Bldg 2 N Fulton/Forsyth County 32,000 1st Corporate Office Centers Corporate Office Centers Jackson Oats Shaw Corporate Real Es

36 4501 Northpoint Pky N Fulton/Forsyth County 31,841 2nd McAfee, Inc. Newmark Knight Frank NAI Brannen Goddard

37 Siemens Bldg* Fayette/Coweta County 31,595 4th Corps of Engineers - Army Reserve N/A N/A

38 Harris Tower* Downtown Atlanta 31,478 1st US Small Business Administration N/A N/A

39 Two Securities Centre* Upper Buckhead 30,708 4th CIGNA Corporation CB Richard Ellis Jones Lang LaSalle

40 Centennial Tower Downtown Atlanta 30,008 4th Federal Defender Program, Inc. N/A Jackson Oats Shaw Corporate Real Es

Source: CoStar Property®

* Renewal

22 THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

YEAR-END 2009 – ATLANTA

Atlanta Office Market

SALES ACTIVITY

The Optimist Sales Index Average of Two Highest Price/SF's and Two Lowest Cap Rates Per Quarter

Cap Rate Price/SF

10.0% $400
9.0%
8.0% $350
7.0%
Cap Rate Percentage 6.0% $300
5.0%
4.0% $250
3.0% Dollars/SF
2.0% Price/SF $200
1.0% $150
0.0%
$100

$50

$0

2006 4q 2007 1q 2007 2q 2007 3q 2007 4q 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q

Source: CoStar COMPS®

Sales Volume & Price Sales Analysis by Building Size

Based on Office Building Sales of 15,000 SF and Larger Based on Office Building Sales From Oct. 2008 - Sept. 2009

Sales Volume Price/SF Bldg Size # RBA $ Volume Price/SF Cap Rate

$2,500 $250

Millions of Sales Volume Dollars < 50,000 SF 131 1,527,536 $ 180,105,404 $ 117.91 8.08%

$2,000 $200

$1,500 $150 50K-249K SF 13 1,380,342 $ 124,797,120 $ 90.41 7.73%
$1,000 $100
$50 250K-499K SF - - -$- -
$500

$0 $0

2004 2005 2005 2006 2006 2007 2007 2008 2008 2009 >500K SF - - -$- -
4q 2q 4q 2q 4q 2q 4q 2q 4q 2q

Source: CoStar COMPS® Source: CoStar COMPS®

U.S. Price/SF Comparison U.S. Cap Rate Comparison

Based on Office Building Sales of 15,000 SF and Larger Based on Office Building Sales of 15,000 SF and Larger

Atlanta US 10.0% Atlanta US

$320

$270 9.0%

$220 Cap Rate Percentage 8.0%

Dollars per SF 7.0%

$170

6.0%

$120 5.0%

$70 4.0%

$20 2005 2005 2006 2006 2007 2007 2008 2008 2009 3.0% 2005 2005 2006 2006 2007 2007 2008 2008 2009
2q 4q 2q 4q 2q 4q 2q 4q 2q 2q 4q 2q 4q 2q 4q 2q 4q 2q
2004 2004
4q 4q

Source: CoStar COMPS® Source: CoStar COMPS®

©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 23

ATLANTA – YEAR-END 2009 Atlanta Office Market

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��������������������� THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

24

YEAR-END 2009 – ATLANTA

Atlanta Office Market

SALES ACTIVITY

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Select Land Sales Based on Commercially Zoned Land Sales Occurring From Oct. 2008 - Dec. 2009

McIntosh Trl, Newnan Newnan Crossing Blvd, Newnan 0 North Point Pky, Alpharetta

Sale Price: $25,000,000 Sale Price: $21,558,718 Sale Price: $13,600,000
Acres: 203.91 Acres: 38.80
Price/SF: 1,597.00 Acres: $2.43 Price/SF: $8.05
Closing Date: 03/20/2009 Closing Date: 10/29/2008
Zoning: $0.36 Price/SF: 1 Zoning: OI
Intended Use: Hold for Development Intended Use: Office
Buyer: 04/24/2009 Closing Date: Fourth Quarter Properties Inc Buyer: Kimball Bridge Holdings LLC
Seller: Agave Investments, Ltd Seller: Holder Properties
1 Zoning:

Planned Unit Development Intended Use:

Church of Jesus Christ of Latter Day SaintsBuyer:

Reese Developers Seller:

0 Jefferson Rd, Jefferson Awtrey Church Rd, Acworth 3624-3625 Providence Rd, Marietta

Sale Price: $9,820,923 Sale Price: $9,243,025 Sale Price: $9,000,000
Acres: 304.23 Acres: 63.75 Acres: 23.00
Price/SF: $0.74 Price/SF: $3.33 Price/SF: $8.98
Closing Date: 11/07/2008 Closing Date: 11/23/2009 Closing Date: 07/02/2009
Zoning: C2 Zoning: LRO/R-20 Zoning: Unknown
Intended Use: Hold for Development Intended Use: Commercial Intended Use: Medical
Buyer: Walton International Group (USA), Inc Buyer: Johnson Ferry Baptist Church, Inc. Buyer: Wellstar Health System Inc
Seller: Arcadebrand LLC Seller: Lanier Barbara L & Nancy K & Ronald A Seller: Drake W. Cauthorn and Thomas E. Cau

Source: CoStar COMPS® THE COSTAR OFFICE REPORT 25
©2010 COSTAR GROUP, INC.

ATLANTA – YEAR-END 2009

Atlanta Office Market
BUCKHEAD MARKET
MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

1.200 Delivered SF Absorption SF Vacancy 25.0%

1.000 20.0%
0.800

Millions SF 0.600 15.0% Percent Vacant
0.400 10.0%
0.200

0.000 5.0%
(0.200)

(0.400) 0.0%

2006 1q 2006 2q 2006 3q 2006 4q 2007 1q 2007 2q 2007 3q 2007 4q 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Source: CoStar Property®

Vacant Space Quoted Rental Rates

Historical Analysis, All Classes Historical Analysis, All Classes

4.50 Direct SF Sublet SF $28.00
$27.50
4.00 $27.00
$26.50
3.50 $26.00
$25.50
Millions SF 3.00 Dollars/SF/Year$25.00
$24.50
2.50 $24.00
$23.50
2.00
2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
1.50
Source: CoStar Property®
1.00

0.50

0.00
2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted
Absorption Rates
Period # Bldgs Total RBA Vacant SF Vacancy % # Bldgs Total RBA # Bldgs Total RBA $24.94
2009 4q 63,344 $25.25
2009 3q 395 20,615,187 3,916,433 19.0% (114,229) 00 2 922,585 $25.65
2009 2q $26.09
2009 1q 395 20,615,187 3,979,777 19.3% 78,164 2 1,058,051 2 922,585 $26.35
2008 4q (47,031) $26.62
2008 3q 393 19,557,136 2,807,497 14.4% 32,448 2 13,914 4 1,980,636 $26.94
2008 2q 37,909 $27.47
2008 1q 391 19,543,222 2,871,747 14.7% (93,935) 00 6 1,994,550 $27.90
2007 4q (98,102) $25.27
2007 3q 391 19,543,222 2,824,716 14.5% 174,214 00 6 1,994,550 $24.88
2007 2q (187,915) $24.99
2007 1q 391 19,543,222 2,857,164 14.6% 426,975 1 3,153 6 1,994,550 $25.40
2006 4q 13,204 $25.24
2006 3q 390 19,540,069 2,891,920 14.8% 309,242 1 482,699 6 1,994,703 $24.82
2006 2q 267,431 $23.56
2006 1q 389 19,057,370 2,315,286 12.1% (60,182) 1 23,000 6 2,466,488
11,184
388 19,034,370 2,194,184 11.5% 00 6 2,003,488

388 19,034,370 2,368,398 12.4% 00 6 2,003,488

388 19,034,370 2,180,483 11.5% 1 581,874 4 1,073,702

388 18,454,496 2,027,584 11.0% 00 2 1,064,573

388 18,454,496 2,040,788 11.1% 00 2 1,064,573

388 18,454,496 2,350,030 12.7% 3 230,171 2 1,064,573

385 18,224,325 2,387,290 13.1% 1 11,600 5 1,294,744

384 18,212,725 2,315,508 12.7% 00 5 823,645

Source: CoStar Property®

26 THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

YEAR-END 2009 – ATLANTA

Atlanta Office Market

CENTRAL PERIMETER MARKET

MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

0.600 Delivered SF Absorption SF Vacancy 25.0%

Millions SF 0.400 20.0% Percent Vacant
0.200 15.0%
0.000 10.0%
(0.200) 5.0%
(0.400)

(0.600) 0.0%

2006 1q 2006 2q 2006 3q 2006 4q 2007 1q 2007 2q 2007 3q 2007 4q 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Source: CoStar Property®

Vacant Space Quoted Rental Rates

Historical Analysis, All Classes Historical Analysis, All Classes

7.00 Direct SF Sublet SF $22.50

6.00 $22.00

5.00 $21.50Dollars/SF/Year

Millions SF 4.00 $21.00

3.00 $20.50

2.00 $20.00

1.00 $19.50
2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
0.00
2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q Source: CoStar Property®

Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted
Absorption Rates
Period # Bldgs Total RBA Vacant SF Vacancy % # Bldgs Total RBA # Bldgs Total RBA $20.51
2009 4q (404,888) $20.54
2009 3q 700 32,846,958 6,519,248 19.8% (127,612) 00 00 $20.51
2009 2q (238,238) $21.14
2009 1q 700 32,846,958 6,114,360 18.6% (204,096) 00 00 $21.56
2008 4q (485,513) $21.78
2008 3q 700 32,846,958 5,986,748 18.2% 00 00 $21.65
2008 2q (98,217) $22.04
2008 1q 700 32,846,958 5,748,510 17.5% 458,964 00 00 $21.89
2007 4q (284,262) $21.00
2007 3q 701 32,860,427 5,557,883 16.9% (325,401) 00 00 $20.95
2007 2q 345,186 $20.50
2007 1q 701 32,860,427 5,072,370 15.4% 152,791 1 85,621 00 $20.02
2006 4q (331,993) $19.95
2006 3q 700 32,774,806 4,888,532 14.9% 131,281 2 413,637 1 85,621 $19.91
2006 2q 268,501 $19.76
2006 1q 698 32,361,169 4,933,859 15.2% 114,413 00 3 499,258
296,147
711 32,562,280 4,850,708 14.9% 00 3 499,258

711 32,562,280 4,525,307 13.9% 00 2 441,621

711 32,562,280 4,870,493 15.0% 2 42,000 1 356,000

711 32,627,382 5,088,386 15.6% 2 32,150 3 398,000

712 32,701,996 4,831,007 14.8% 00 5 430,150

712 32,701,996 4,962,288 15.2% 00 4 74,150

712 32,701,996 5,230,789 16.0% 1 35,100 2 32,150

711 32,666,896 5,310,102 16.3% 00 1 35,100

Source: CoStar Property®

©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 27

ATLANTA – YEAR-END 2009

Atlanta Office Market

DOWNTOWN ATLANTA MARKET

MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

0.600 Delivered SF Absorption SF Vacancy 14.5%

0.500 14.0%
0.400 13.5%
0.300
Percent Vacant
Millions SF 0.200 13.0%
0.100 12.5%
0.000

(0.100) 12.0%
(0.200) 11.5%
(0.300)

(0.400) 11.0%

2006 1q 2006 2q 2006 3q 2006 4q 2007 1q 2007 2q 2007 3q 2007 4q 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Source: CoStar Property®

Vacant Space Sublet SF Quoted Rental Rates

Historical Analysis, All Classes Historical Analysis, All Classes

6.00 Direct SF $20.20
$20.00
5.00 $19.80
$19.60
Millions SF 4.00 Dollars/SF/Year$19.40
$19.20
3.00 $19.00
$18.80
2.00 $18.60
$18.40
1.00 $18.20
$18.00
0.00
2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted
Absorption Rates
Period # Bldgs Total RBA Vacant SF Vacancy % # Bldgs Total RBA # Bldgs Total RBA $18.89
2009 4q (138,538) $18.75
2009 3q 348 35,219,472 4,924,347 14.0% (121,273) 00 00 $19.81
2009 2q (338,243) $19.98
2009 1q 348 35,219,472 4,785,809 13.6% 00 00 $19.94
2008 4q (50,727) $19.99
2008 3q 348 35,219,472 4,664,536 13.2% 30,920 00 00 $19.48
2008 2q 107,009 $19.41
2008 1q 348 35,219,472 4,326,293 12.3% 275,295 00 00 $18.28
2007 4q 11,868 $18.54
2007 3q 348 35,219,472 4,275,566 12.1% 274,096 00 00 $19.54
2007 2q 16,418 $19.49
2007 1q 348 35,219,472 4,306,486 12.2% 308,115 1 4,629 00 $19.68
2006 4q 231,012 $19.82
2006 3q 347 35,214,843 4,408,866 12.5% 32,368 00 1 4,629 $19.89
2006 2q (239,397) $20.00
2006 1q 347 35,214,843 4,684,161 13.3% 10,598 1 18,928 1 4,629
(218,621)
347 35,199,115 4,680,301 13.3% 1 90,688 2 23,557

346 35,108,427 4,863,709 13.9% 1 8,401 3 114,245

345 35,100,026 4,871,726 13.9% 2 475,418 4 122,646

343 34,624,608 4,704,423 13.6% 00 5 593,435

343 34,624,608 4,935,435 14.3% 1 41,141 3 483,819

342 34,583,467 4,926,662 14.2% 00 3 516,559

342 34,583,467 4,687,265 13.6% 00 3 516,559

342 34,583,467 4,697,863 13.6% 00 3 516,559

Source: CoStar Property®

28 THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

YEAR-END 2009 – ATLANTA

Atlanta Office Market

MIDTOWN ATLANTA MARKET

MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

0.800 Delivered SF Absorption SF Vacancy 18.0%

0.600 16.0%
14.0%

Millions SF 0.400 12.0% Percent Vacant

0.200 10.0%
8.0%

0.000 6.0%

(0.200) 4.0%
2.0%

(0.400) 0.0%

2006 1q 2006 2q 2006 3q 2006 4q 2007 1q 2007 2q 2007 3q 2007 4q 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Source: CoStar Property®

Vacant Space Quoted Rental Rates

Historical Analysis, All Classes Historical Analysis, All Classes

4.00 Direct SF Sublet SF $24.50
$24.00
3.50 $23.50
$23.00
3.00 $22.50
$22.00
Millions SF 2.50 $21.50Dollars/SF/Year
$21.00
2.00 $20.50
$20.00
1.50
2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
1.00
Source: CoStar Property®
0.50

0.00
2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted
Absorption Rates
Period # Bldgs Total RBA Vacant SF Vacancy % # Bldgs Total RBA # Bldgs Total RBA $21.57
2009 4q (56,567) $21.83
2009 3q 343 23,102,265 3,643,008 15.8% 168,625 00 1 719,003 $22.30
2009 2q (65,888) $23.59
2009 1q 343 23,102,265 3,586,441 15.5% 00 1 719,003 $24.10
2008 4q 26,776 $23.56
2008 3q 343 23,102,265 3,755,066 16.3% 26,862 1 548,039 1 719,003 $23.90
2008 2q (53,751) $23.78
2008 1q 342 22,554,226 3,141,139 13.9% 20,803 00 2 1,267,042 $23.54
2007 4q (315,104) $23.49
2007 3q 342 22,554,226 3,167,915 14.0% (16,910) 2 281,346 2 1,267,042 $21.29
2007 2q 33,260 $21.65
2007 1q 340 22,272,880 2,913,431 13.1% 157,273 00 4 1,548,388 $20.95
2006 4q (13,789) $20.98
2006 3q 340 22,272,880 2,859,680 12.8% (128,715) 00 4 1,548,388 $20.95
2006 2q 284,932 $20.75
2006 1q 340 22,272,880 2,880,483 12.9% 183,894 00 4 1,548,388
395,005
340 22,272,880 2,565,379 11.5% 00 3 1,531,042

341 22,315,995 2,591,584 11.6% 2 359,602 3 1,531,042

339 21,956,393 2,265,242 10.3% 3 328,754 3 623,602

336 21,627,639 2,093,761 9.7% 00 6 952,356

337 21,696,639 2,148,972 9.9% 00 5 688,356

338 21,834,914 2,158,532 9.9% 00 5 688,356

338 21,834,914 2,443,464 11.2% 00 2 643,681

338 21,834,914 2,627,358 12.0% 2 673,327 2 643,681

Source: CoStar Property®

©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 29

ATLANTA – YEAR-END 2009

Atlanta Office Market

N O R T H F U LT O N M A R K E T

MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

0.700 Delivered SF Absorption SF Vacancy 20.0%

0.600 18.0%

0.500 16.0%

0.400 14.0% Percent Vacant

Millions SF 0.300 12.0%

0.200 10.0%

0.100 8.0%

0.000 6.0%

(0.100) 4.0%

(0.200) 2.0%

(0.300) 0.0%

2006 1q 2006 2q 2006 3q 2006 4q 2007 1q 2007 2q 2007 3q 2007 4q 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Source: CoStar Property®

Vacant Space Quoted Rental Rates

Historical Analysis, All Classes Historical Analysis, All Classes

7.00 Direct SF Sublet SF $19.20
$19.00
6.00 $18.80
$18.60
5.00 $18.40Dollars/SF/Year
$18.20
Millions SF 4.00 $18.00
$17.80
3.00 $17.60
$17.40
2.00 $17.20

1.00 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

0.00 Source: CoStar Property®
2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted
Absorption Rates
Period # Bldgs Total RBA Vacant SF Vacancy % # Bldgs Total RBA # Bldgs Total RBA $17.86
2009 4q (142,005) $18.11
2009 3q 1,637 34,981,287 6,108,664 17.5% (212,218) 1 22,597 00 $18.06
2009 2q (203,096) $18.30
2009 1q 1,636 34,958,690 5,944,062 17.0% 10 52,813 1 22,597 $18.74
2008 4q 28,337 $18.92
2008 3q 1,626 34,905,877 5,679,031 16.3% 341,000 4 189,200 11 75,410 $18.81
2008 2q (113,631) $18.74
2008 1q 1,622 34,716,677 5,286,735 15.2% (64,846) 9 80,071 14 248,770 $18.16
2007 4q 230,230 $18.22
2007 3q 1,613 34,636,606 5,235,001 15.1% 14 566,899 22 306,244 $18.25
2007 2q 53,415 $17.47
2007 1q 1,599 34,069,707 5,009,102 14.7% 296,155 15 334,012 29 843,236 $17.55
2006 4q 190,213 $17.45
2006 3q 1,584 33,735,695 4,561,459 13.5% 270,083 10 290,286 41 1,160,330 $17.25
2006 2q 480,442 $16.99
2006 1q 1,574 33,445,409 4,206,327 12.6% 291,747 21 138,963 39 1,289,447
421,197
1,553 33,306,446 4,297,594 12.9% 229,936 10 259,293 53 1,288,872

1,543 33,047,153 4,091,716 12.4% 23 116,912 48 1,228,535

1,520 32,930,241 4,270,959 13.0% 12 334,237 55 861,550

1,508 32,596,004 4,126,935 12.7% 15 316,914 49 909,186

1,494 32,290,290 4,091,304 12.7% 7 134,522 54 1,115,777

1,487 32,155,768 4,437,224 13.8% 8 378,355 50 1,003,938

1,479 31,777,413 4,350,616 13.7% 10 73,279 32 1,055,240

1,469 31,704,134 4,698,534 14.8% 8 70,680 28 859,462

Source: CoStar Property®

30 THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

YEAR-END 2009 – ATLANTA

Atlanta Office Market

NORTHEAST ATLANTA MARKET

MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

0.400 Delivered SF Absorption SF Vacancy 25.0%

Millions SF 0.300 20.0% Percent Vacant
0.200 15.0%
0.100

0.000 10.0%
(0.100) 5.0%
(0.200)

(0.300) 0.0%

2006 1q 2006 2q 2006 3q 2006 4q 2007 1q 2007 2q 2007 3q 2007 4q 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Source: CoStar Property®

Vacant Space Quoted Rental Rates

Historical Analysis, All Classes Historical Analysis, All Classes

7.00 Direct SF Sublet SF $17.30
$17.20
6.00 $17.10
$17.00
5.00 Dollars/SF/Year$16.90
$16.80
Millions SF 4.00 $16.70
$16.60
3.00 $16.50
$16.40
2.00 $16.30
$16.20
1.00
2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
0.00
2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q Source: CoStar Property®

Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted
Absorption Rates
Period # Bldgs Total RBA Vacant SF Vacancy % # Bldgs Total RBA # Bldgs Total RBA $16.58
2009 4q 108,412 $16.54
2009 3q 2,157 29,991,556 5,909,116 19.7% (169,473) 1 12,479 1 7,134 $16.68
2009 2q (126,983) $16.84
2009 1q 2,156 29,979,077 6,005,049 20.0% 3 122,385 2 19,613 $17.06
2008 4q (39,884) $17.13
2008 3q 2,153 29,856,692 5,713,191 19.1% (193,611) 1 9,000 5 141,998 $16.98
2008 2q (255,672) $17.16
2008 1q 2,152 29,847,692 5,577,208 18.7% 7 58,964 5 138,519 $17.09
2007 4q 13,888 $16.52
2007 3q 2,145 29,788,728 5,478,360 18.4% 59,668 4 158,739 11 190,349 $16.57
2007 2q 67,063 $16.51
2007 1q 2,141 29,629,989 5,126,010 17.3% 165,162 7 120,907 12 327,365 $16.21
2006 4q 109,258 $16.15
2006 3q 2,134 29,509,082 4,749,431 16.1% 222,652 7 66,914 17 335,576 $15.76
2006 2q 173,745 $15.50
2006 1q 2,127 29,442,168 4,696,405 16.0% 334,373 15 133,577 18 351,560
(83,608)
2,113 29,313,591 4,627,496 15.8% 193,705 22 320,089 28 378,209

2,091 28,993,502 4,374,470 15.1% 15 150,389 41 636,443

2,076 28,843,113 4,389,243 15.2% 7 51,511 49 570,575

2,069 28,791,602 4,446,990 15.4% 32 329,873 41 470,619

2,038 28,474,529 4,352,569 15.3% 21 243,372 57 697,456

2,017 28,231,157 4,282,942 15.2% 17 352,156 66 837,349

2,000 27,879,001 4,265,159 15.3% 22 240,363 60 894,451

1,979 27,639,686 3,942,236 14.3% 23 352,936 59 931,421

Source: CoStar Property®

©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 31

ATLANTA – YEAR-END 2009

Atlanta Office Market
NORTHLAKE MARKET
MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

0.400 Delivered SF Absorption SF Vacancy 12.0%

0.300 10.0%
0.200

Millions SF 0.100 8.0% Percent Vacant

0.000 6.0%
(0.100)

(0.200) 4.0%

(0.300) 2.0%
(0.400)

(0.500) 0.0%

2006 1q 2006 2q 2006 3q 2006 4q 2007 1q 2007 2q 2007 3q 2007 4q 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Source: CoStar Property®

Vacant Space Quoted Rental Rates

Historical Analysis, All Classes Historical Analysis, All Classes

3.50 Direct SF Sublet SF $18.50

3.00 $18.00

2.50 Dollars/SF/Year$17.50

Millions SF 2.00 $17.00

1.50 $16.50

1.00 $16.00
2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
0.50
Source: CoStar Property®
0.00
2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted
Absorption Rates
Period # Bldgs Total RBA Vacant SF Vacancy % # Bldgs Total RBA # Bldgs Total RBA $17.10
2009 4q (42,664) $17.07
2009 3q 1,999 28,085,921 3,084,117 11.0% 1,122 00 1 6,000 $17.24
2009 2q $17.63
2009 1q 1,999 28,085,921 3,041,453 10.8% (379,829) 1 6,000 1 6,000 $17.91
2008 4q 27,300 $18.17
2008 3q 1,998 28,079,921 3,036,575 10.8% 17,094 2 62,400 2 12,000 $18.40
2008 2q (32,326) $18.20
2008 1q 1,996 28,017,521 2,594,346 9.3% 94,496 1 20,000 2 62,400 $18.14
2007 4q 23,516 $17.83
2007 3q 1,995 27,997,521 2,601,646 9.3% 3,978 4 61,800 2 40,400 $17.75
2007 2q $17.50
2007 1q 1,991 27,935,721 2,556,940 9.2% 112,632 2 13,200 6 102,200 $17.28
2006 4q (9,311) $17.11
2006 3q 1,989 27,922,521 2,511,414 9.0% 00 7 95,400 $17.09
2006 2q (31,075) $17.03
2006 1q 1,989 27,922,521 2,605,910 9.3% 323,208 1 5,000 6 89,700

1,988 27,917,521 2,624,426 9.4% (8,514) 9 176,625 2 12,500
5,555
1,979 27,740,896 2,451,779 8.8% 103,090 3 49,326 10 181,625

1,976 27,691,570 2,515,085 9.1% 4 51,119 12 223,951

1,972 27,640,451 2,454,655 8.9% 9 74,142 12 191,034

1,963 27,566,309 2,349,438 8.5% 2 28,701 17 240,587

1,961 27,537,608 2,643,945 9.6% 3 125,990 15 176,162

1,958 27,411,618 2,509,441 9.2% 1 18,339 15 264,033

1,957 27,393,279 2,496,657 9.1% 5 64,746 10 259,130

Source: CoStar Property®

32 THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

YEAR-END 2009 – ATLANTA

Atlanta Office Market

NORTHWEST ATLANTA MARKET

MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

0.600 Delivered SF Absorption SF Vacancy 17.5%

0.500 17.0%

0.400 16.5%

Millions SF 0.300 16.0% Percent Vacant

0.200 15.5%

0.100 15.0%

0.000 14.5%

(0.100) 14.0%

(0.200) 13.5%

(0.300) 13.0%

2006 1q 2006 2q 2006 3q 2006 4q 2007 1q 2007 2q 2007 3q 2007 4q 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Source: CoStar Property®

Vacant Space Quoted Rental Rates

Historical Analysis, All Classes Historical Analysis, All Classes

9.00 Direct SF Sublet SF $19.60
$19.40
8.00 $19.20
$19.00
7.00 $18.80
$18.60
Millions SF 6.00 Dollars/SF/Year$18.40
$18.20
5.00 $18.00
$17.80
4.00 $17.60

3.00 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

2.00 Source: CoStar Property®

1.00

0.00
2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted
Absorption Rates
Period # Bldgs Total RBA Vacant SF Vacancy % # Bldgs Total RBA # Bldgs Total RBA $18.25
2009 4q 128,017 $18.51
2009 3q 2,336 45,392,371 7,709,034 17.0% (66,013) 1 60,000 3 56,710 $18.73
2009 2q (206,292) $19.00
2009 1q 2,335 45,332,371 7,777,051 17.2% (245,388) 2 28,840 4 116,710 $18.92
2008 4q 249,436 $19.25
2008 3q 2,333 45,303,531 7,682,198 17.0% 65,908 5 71,104 6 145,550 $19.22
2008 2q 47,250 $19.34
2008 1q 2,328 45,232,427 7,404,802 16.4% 100,548 7 104,442 9 138,654 $19.32
2007 4q (212,915) $18.57
2007 3q 2,321 45,127,985 7,054,972 15.6% 523,447 8 194,563 14 203,036 $18.42
2007 2q (121,876) $18.13
2007 1q 2,313 44,933,422 7,109,845 15.8% 201,198 2 21,000 19 358,259 $18.24
2006 4q (24,303) $18.21
2006 3q 2,311 44,912,422 7,154,753 15.9% 226,120 2 55,000 17 348,379 $18.38
2006 2q 353,151 $18.34
2006 1q 2,309 44,857,422 7,147,003 15.9% 70,656 17 360,149 17 385,379

2,292 44,497,273 6,887,402 15.5% 12 204,260 26 576,844

2,280 44,293,013 6,470,227 14.6% 8 104,800 35 694,001

2,274 44,322,083 7,022,744 15.8% 13 186,432 37 669,209

2,261 44,135,651 6,714,436 15.2% 18 213,078 35 660,929

2,243 43,922,573 6,702,556 15.3% 9 119,823 43 776,763

2,235 43,809,720 6,565,400 15.0% 14 262,029 45 647,289

2,221 43,547,691 6,529,491 15.0% 14 94,502 43 702,930

2,207 43,453,189 6,788,140 15.6% 10 105,838 39 563,614

Source: CoStar Property®

©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 33

ATLANTA – YEAR-END 2009

Atlanta Office Market

SOUTH ATLANTA MARKET

MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

0.350 Delivered SF Absorption SF Vacancy 18.0%

Millions SF 0.300 16.0% Percent Vacant
0.250 14.0%
0.200 12.0%
0.150 10.0%
0.100 8.0%
0.050 6.0%
0.000 4.0%
(0.050) 2.0%
(0.100)

(0.150) 0.0%

2006 1q 2006 2q 2006 3q 2006 4q 2007 1q 2007 2q 2007 3q 2007 4q 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Source: CoStar Property®

Vacant Space Quoted Rental Rates

Historical Analysis, All Classes Historical Analysis, All Classes

3.50 Direct SF Sublet SF $18.40
$18.20
3.00 $18.00
$17.80
2.50 Dollars/SF/Year$17.60
$17.40
Millions SF 2.00 $17.20
$17.00
1.50 $16.80
$16.60
1.00
2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
0.50
Source: CoStar Property®
0.00
2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted
Absorption Rates
Period # Bldgs Total RBA Vacant SF Vacancy % # Bldgs Total RBA # Bldgs Total RBA $17.14
2009 4q 34,453 $17.30
2009 3q 1,590 19,024,134 2,985,574 15.7% 76,775 00 1 21,000 $17.39
2009 2q 148,787 $17.53
2009 1q 1,590 19,024,134 3,020,027 15.9% (53,844) 2 146,596 1 21,000 $18.22
2008 4q 74,888 $18.18
2008 3q 1,588 18,877,538 2,950,206 15.6% 39,376 3 130,992 3 167,596 $18.09
2008 2q (75,010) $17.70
2008 1q 1,585 18,746,546 2,968,001 15.8% 145,578 7 108,343 6 298,588 $17.58
2007 4q (102,802) $17.63
2007 3q 1,578 18,638,203 2,805,814 15.1% 157,345 4 99,740 12 385,931 $17.40
2007 2q 111,002 $17.33
2007 1q 1,574 18,538,463 2,780,962 15.0% 97,860 4 31,410 14 339,075 $16.14
2006 4q 142,463 $15.91
2006 3q 1,570 18,507,053 2,788,928 15.1% (48,556) 5 251,600 17 344,485 $15.73
2006 2q 196,380 $15.72
2006 1q 1,565 18,255,453 2,462,318 13.5% 126,210 12 214,749 13 354,750

1,553 18,040,704 2,393,147 13.3% 10 196,023 20 492,914

1,543 17,844,681 2,094,322 11.7% 12 209,550 25 609,772

1,531 17,635,131 2,042,117 11.6% 8 83,190 31 690,639

1,523 17,551,941 2,069,929 11.8% 17 281,341 35 736,253

1,506 17,270,600 1,886,448 10.9% 7 117,144 41 602,833

1,499 17,153,456 1,911,767 11.1% 5 58,845 34 568,605

1,494 17,094,611 1,804,366 10.6% 7 158,681 32 535,430

1,487 16,935,930 1,842,065 10.9% 19 293,763 24 497,790

Source: CoStar Property®

34 THE COSTAR OFFICE REPORT ©2010 COSTAR GROUP, INC.

YEAR-END 2009 – ATLANTA

Atlanta Office Market

WEST ATLANTA MARKET

MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

0.150 Delivered SF Absorption SF Vacancy 30.0%

Millions SF 0.100 25.0% Percent Vacant
0.050 20.0%
0.000

(0.050) 15.0%

(0.100) 10.0%
(0.150) 5.0%
(0.200)

(0.250) 0.0%

2006 1q 2006 2q 2006 3q 2006 4q 2007 1q 2007 2q 2007 3q 2007 4q 2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

Source: CoStar Property®

Vacant Space Quoted Rental Rates

Historical Analysis, All Classes Historical Analysis, All Classes

1.40 Direct SF Sublet SF $16.50

1.20 $16.00

1.00 $15.50Dollars/SF/Year

Millions SF 0.80 $15.00

0.60 $14.50

0.40 $14.00

0.20 $13.50
2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
0.00
2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q Source: CoStar Property®

Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted
Absorption Rates
Period # Bldgs Total RBA Vacant SF Vacancy % # Bldgs Total RBA # Bldgs Total RBA $14.62
2009 4q (84,948) $14.88
2009 3q 392 4,543,533 1,227,699 27.0% 40,758 00 00 $14.99
2009 2q $15.42
2009 1q 392 4,543,533 1,142,751 25.2% (638) 1 18,000 00 $16.23
2008 4q 56,751 $16.34
2008 3q 391 4,525,533 1,165,509 25.8% 1 13,234 1 18,000 $15.93
2008 2q 9,990 $15.54
2008 1q 390 4,512,299 1,151,637 25.5% (12,827) 00 2 31,234 $15.38
2007 4q (201,333) $15.14
2007 3q 390 4,512,299 1,208,388 26.8% (42,328) 00 2 31,234 $15.23
2007 2q 109,565 $10.00
2007 1q 390 4,512,299 1,218,378 27.0% 35,355 00 1 13,234 $9.77
2006 4q (23,367) $11.08
2006 3q 390 4,512,299 1,205,551 26.7% 19,649 00 00 $10.97
2006 2q $10.62
2006 1q 390 4,512,299 1,004,218 22.3% (3,589) 1 5,400 00
34,907
389 4,506,899 956,490 21.2% 55,142 3 101,854 1 5,400
80,907
386 4,405,045 964,201 21.9% 1 15,324 4 107,254

385 4,389,721 984,232 22.4% 2 24,560 5 122,578

383 4,365,161 936,305 21.4% 8 89,470 6 141,738

375 4,275,691 866,484 20.3% 8 56,240 12 200,854

367 4,219,451 806,655 19.1% 1 40,323 16 145,710

366 4,179,128 801,239 19.2% 1 8,000 17 186,033

365 4,171,128 848,381 20.3% 3 27,877 13 133,273

Source: CoStar Property®

©2010 COSTAR GROUP, INC. THE COSTAR OFFICE REPORT 35