Offi ce Submarket Report | DOWNTOWN Q3 2018

Key Takeaways Market Indicators Downtown Downtown > Downtown led the Atlanta market in offi ce absorption this quarter Relative to prior period Q3 2018 Q4 2018* with 230,852 square feet absorbed. This is the third consecutive VACANCY quarter the submarket has absorbed over 100,000 square feet. This has resulted in Downtown having the highest occupancy gains NET ABSORPTION so far this year in Atlanta. CONSTRUCTION - > Move-ins at the Bank of America Plaza accounted for 27% of RENTAL RATE this quarter’s positive activity. Revel Systems and Flexport each

occupied a full fl oor this quarter. *Projected > Demand for offi ce remains elevated in the submarket. Downtown has been receiving a lot of positive attention as it relates to investment activity and expansion announcements this year. Summary Statistics All Downtown Offi ce Market Classes Class A Class B > The Willoughby was the sole delivery this quarter in the submarket. The 61,000 square foot offi ce building is 100% leased. Total Inventory (Millions Square Feet) 24.5 13.6 10.0 > Downtown is having its best year of occupancy gains since 2008. Q4 absorption in the submarket is expected to be strong yet again. Vacancy Rate 12.4% 17.4% 6.9%

Absorption, Deliveries and Vacancy Change From Q2 2018 -0.7% -1.2% -0.1% 250,000 15% Absorption YTD 462 237 208 (Thousands Square Feet) 200,000 Construction Deliveries YTD 14% 61 - 61 150,000 (Thousands Square Feet)

Square Feet 100,000 Under Construction 63 - 63 13% (Thousands Square Feet) 50,000 Asking Rents 0 12% Per Square Foot Per Year 3Q17 4Q17 1Q18 2Q18 3Q18 Absorption Deliveries Vacancy Average Quoted $25.93 $27.20 $23.35 Change From Q2 2018 0.4% 0.4% -1.1% UPDATE - Recent Transactions in the Market Notable Leasing Activity

TENANT PROPERTY LANDLORD SIZE (SF) TYPE

Ogletree Deakins Nash Smoak 191 Peachtree Banyan Street Capital 52,510 Class A Renewal GSA Marquis I - 245 Peacthree Ctr. Banyan Street Capital 31,775 Class A Renewal Revel Systems Bank of America Tower Shorenstein Properties 24,000 Class A Lease Total Quality Logistics 270 Peachtree Richard Bowers & Co. 13,924 Class A Lease Notable Sales Activity

PROPERTY SALES DATE SALE PRICE SIZE (SF) PRICE / SF BUYER

Atlanta Stove Works 4/13/2018 $45,800,000 104,825 $436.92 Asana Partners 222 Mitchell Street 4/16/2018 $12,100,000 439,603 $27.52 Newport US Real Estate 41 Marietta St. 7/24/2018 $11,500,000 135,000 $85.19 FCA Partners LLC 750 Ralph McGill Blvd. 2/16/2018 $4,900,000 20,431 $239.83 New City, LLC

Sources: CoStar Property, Colliers Research Skyline Review

Space Available Direct Sublet 60

55

50

45

40

35

30

Floors 25

20

15

10

5

BUILDING Bank of America Plaza SunTrust Plaza -Pacifi c 191 Peachtree 101 Center RBA 1,330,000 SF 1,249,022 SF 1,133,840 SF 1,219,000 SF 664,477 SF TYPICAL FLOOR SIZE 23,500 SF 25,000 SF 20,000 SF 24,220 SF 20,050 SF % LEASED 63.0% 95.1% 97.2% 91.1% 78.6% LARGEST SPACE AVAIL. 305,127 SF 23,582 SF 95,460 SF 35,167 SF 60,180 SF RENTAL RATE PER SF (Gross) $35.00-$40.00 $32.00 $27.50-$28.50 $31.00-$33.00 $24.00-$28.00 12345

11 3

7 13 1 2 8 4 3 10 15 9 2 6 16 14 5 8 7 5 4 10 6 12 1 2

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2 Offi ce Submarket Report | Q3 2018 | Downtown | Colliers International - Atlanta Proposed Dev. Source: CoStar Property 1

285 MARIETTA STREET EQUITABLE 350,000 SF offi ce 60,000 SF retail Proposed Developers: Seven Oaks Co./ Legacy Property Gr.

2

100 Peachtree Marquis I South Tower 270 Peachtree

622,084 SF 460,437 SF 349,488 SF 326,023 SF 423,169 SF

19,600 SF 18,000 SF 14,562 SF 13,924 SF 24,224 SF 50 ALLEN PLAZA 870,914 SF 94.1% 74.5% 67.4% 82.9% 80.5% Proposed Land acquired Fall 2018 48,006 SF 18,413 SF 52,213 SF 27,848 SF 34,133 SF New Owner: Drapac Group $28.50-$30.00 $24.00-$25.00 $23.00-$24.00 $17.50-$22.00 $19.00-$24.50 3 67 8910 Aerial Legend Points of Interest Mercedes-Benz 1 Former Georgia 9 Dome Site Stadium 2 Philips Arena 10 Georgia Tech THE WILLOUGHBY Georgia World 61,000 SF 3 Congress Center 11 Buildings by Number DELIVERED Q3 2018 College Football Developer: Cross-Town Realty (see opposite page) 4 CNN Center 12 Hall of Fame Centennial Georgia State University MARTA Rail Line 5 Olympic Park 13

New Construction 6 Georgia Aquarium14

7 World of Coke 15 State Capital

8 Civil Rights Museum 16 Turner Field

3 Offi ce Submarket Report | Q3 2018 | Downtown | Colliers International - Atlanta In The News > apartment stack is offi cially a go: Developers have broken ground around FOR MORE INFORMATION the corner from the on “Generation Atlanta”. This millennial-focused apartment Scott Amoson stack is designed to off er a cheaper alternative to Midtown. The 17-story tower from Kaplan VP, Director of Research | Atlanta Residential is expected to add up to 350 new rentals to the submarket. The original plans for +1 404 877 9286 the building were to off er close to 40 cents per square foot less than average rates in Midtown. [email protected] Designed by architecture fi rm Niles Bolton Associates, Generation Atlanta should add valuable pedestrian activity and resident uptick to an area of high demand. > Gulch developer CIM Group in talks with Fortune 500 corporation: The Gulch project could COLLIERS INTERNATIONAL bring a Fortune 500 corporation, its headquarters, and up to 600 jobs to downtown Atlanta. ATLANTA OFFICE SPECIALISTS According to sources in the city, CIM is in discussions with this yet-to-be-named company, but it is not Amazon. Despite being in contention for Amazon’s fabled $5 billion HQ2, the Gulch is Scott DeMyer Emily Richardson the leading contender for this unidentifi ed company. The deal, which would be a huge win for Jessica Doyle Jodi Selvey the state of Georgia, is one of the reasons why CIM is trying to get the Gulch deal approved as Lee Evans Fred Sheats soon as possible by the City of Atlanta. The identity of the company is expected to become public Deming Fish Pete Shelton following a council vote on the Gulch deal’s future which has been a contentious process. Josh Gregory Hayes Swann Russ Jobson Will Tyler AT A GLANCE | The Hub at Jeff Kelley Andrew Waguespack > Redevelopment project at Peachtree Center Dany Koe Andrew Walker to transform the retail core of Downtown. Drew Levine Bob Ward > Plans are for a more inviting, brighter Michael Lipton Tiff any Wein experience throughout the project to include modernized shopping, dining, and Paul Reese Stewart Yates entertainment options. > A new glass-enclosed staircase connecting to the retail center will be the highlight of the redevelopment. > The face-lift is well underway and is to be completed by the Spring of 2019.

Colliers International | Atlanta Offi ce | Downtown Listings

PEACHTREE CENTER 982-224,837 SF Lease Scott DeMyer / Emily Richardson GLENCASTLE 7,300-70,300 SF Scott DeMyer / Will Tyler MARQUIS I & II SUNTRUST PLAZA 1,168-72,804 SF Lease 23,582 SF Sublease Jessica Doyle / Pete Shelton Deming Fish

Colliers International | Atlanta Promenade | Suite 800 1230 , NE Atlanta, Georgia, 30309 Copyright © 2018 Colliers International. +1 404 888 9000 The information contained herein has been obtained from sources deemed reliable. While colliers.com/atlanta every reasonable eff ort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional4 advisorsNorth priorAmerican to acting onResearch any of the material & Forecast contained Report in this report. | Q4 2014 | Offi ce Market Outlook | Colliers International