MIDTOWN ATLANTA OFFICE SUBMARKET REPORT | Summer 2020

12.3% Q2 Vacancy $

66,178 SF Q2 Net Absorption $

3,713,129 SF Q2 Under Construction #

$40.37 PSF Average Asking Rent (per year) #

$41.24 PSF CLASS A Average Asking Rent (per year) #

$27.96 PSF CLASS B Average Asking Rent (per year) $

While Midtown’s net absorption was significantly lower in Q2 2020 at 66,178 SF, compared to Q1 2020 at 678,278 SF, the quarter ended with confidence after Microsoft’s announcement. Microsoft anounced their plans to occupy 523,501 SF in two newly constructed buildings, Atlantic Yards South and Atlantic Yards North. Midtown continues to attract large corporations, especially tech-oriented tenants, boosted by the presence of Georgia Tech. Developers have responded to this wave of technology tenants with an influx of groundbreakings, making the submarket the lead of all metro development, at 3.7 million SF under construction.

3500 Lenox Road, Suite 1600 | Atlanta, GA 30326 | 404.442.2810 | lee-associates.com/atlanta MIDTOWN ATLANTA OFFICE SUBMARKET REPORT | Summer 2020

ATLANTIC YARDS SOUTH | 200 17TH ST NW NOTABLE DELIVERY • Anthem Technology Center | 740 W Peachtree St NW 352,000 SF | 100% Leased (Build-to-Suit)

NOTABLE LEASES • 200 17th St NW (pictured) 28,308 SF Tenant: Microsoft • 170 17th St NW 156,541 SF Tenant: Microsoft • 981 Howell Mill Rd 23,372 SF Tenant: Atlanta Humane Society

NOTABLE DEVELOPMENTS • Norfolk Southern HQ | 650 W Peachtree St NW 750,000 SF | 100% leased (Build-to-Suit) • 1105 WP | 1105 West Peachtree St 664,184 SF | 40% leased • Midtown Union | 1331 Spring St NW 609,110 SF | 53% leased

VACANCY & RENTAL RATE ABSORPTION & UNDER CONSTRUCTION Q2 2017 - Q2 2020 Q2 2017 - Q2 2020

16% $45.00 4,000,000 3,500,000 14% $40.00 3,000,000 12% 2,500,000 $35.00 10% 2,000,000 1,500,000 8% $30.00 1,000,000 6% $25.00 500,000 4% 0 2% $20.00 -500,000 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 Vacancy Rate % Quoted Rates $ Net Absorption SF Under Construction SF

The information and details contained herein have been obtained from third-party sources believed errors, omissions, changes of price or conditions, prior sale or lease, and withdrawal without notice. to be reliable; however, Lee & Associates Atlanta has not independently verified its accuracy. Lee & Third-party data sources CoStar Group, Inc. The Midtown Atlanta Office Submarket Report from Lee & Associates Atlanta makes no representations, guarantees, or express or implied warranties of any kind Associates Atlanta compiles market data by using a third-party database for the proprietary analysis of regarding the accuracy or completeness of the information and details provided herein, including but office properties in the Atlanta Metropolitan Area. not limited to the implied warranty of suitability and fitness for a particular purpose. © Copyright 2020 Lee & Associates Atlanta. All rights reserved. Interested parties should perform their own due diligence regarding the accuracy of the information. Market report analysis by: Kate Hunt, Director of Research The information provided herein, including any sale or lease terms, is being provided subject to Market report created by: Bentley Logue, Graphic Designer

3500 Lenox Road, Suite 1600 | Atlanta, GA 30326 | 404.442.2810 | lee-associates.com/atlanta