BUCKHEAD OFFICE Year-End SUBMARKET REPORT 2019

14.1% Q4 Vacancy $ 133,028 SF Q4 Net Absorption # 395,000 SF Q4 Under Construction 1 $35.42 PSF Average Asking Rent (per year) # $36.77 PSF CLASS A Average Asking Rent (per year) # $26.71 PSF CLASS B Average Asking Rent (per year) $

Overall vacancy in the submarket decreased by 60 basis points in Q4 2019 to 14.1%, with a positive net absorption of 133,028 SF. The largest lease in the Buckhead submarket in Q4 was QGenda, 47,670 SF at Terminus 100. Simon Property Group continues to make progress on the construction of One Phipps Plaza, a 340,000 SF office building in the Upper Buckhead submarket. With thirteen stories of office space, One Phipps Plaza will also feature an outdoor event space with direct access to Phipps Mall. Completion of One Phipps Plaza is estimated to be in January of 2021.

3500 Lenox Road, Suite 1600 | , GA 30326 | 404.442.2810 | lee-associates.com/atlanta BUCKHEAD OFFICE SUBMARKET REPORT Year-End 2019

SALESFORCE TOWER

NOTABLE 2019 SALE (pictured) Salesforce Tower | 950 E Paces Ferry Rd NE 631,808 SF | $324 PSF Buyer: KKR & Co. L.P.

NOTABLE LEASES • Terminus 100 | 3280 Peachtree Rd NE 47,670 SF | Tenant: QGenda • | 3344 Peachtree Rd NE 26,399 SF | Tenant: Unknown • 3344 Peachtree | 3344 Peachtree Rd NE 10,637 SF | Tenant: Balentine, LLC

NOTABLE DEVELOPMENT One Phipps Plaza | 1 Phipps Plaza Blvd 340,000 SF | 0% Leased Developer: Simon Property Group, Inc Estimated Completion: 2021

VACANCY & RENTAL RATE ABSORPTION & UNDER CONSTRUCTION Q4 2016 - Q4 2019 Q4 2016 - Q4 2019

The information and details contained herein have been obtained from third-party sources believed omissions, changes of price or conditions, prior sale or lease, and withdrawal without notice. Third- to be reliable; however, Lee & Associates Atlanta has not independently verified its accuracy. Lee & party data sources CoStar Group, Inc. The Buckhead Office Submarket Report from Lee & Associates Associates Atlanta makes no representations, guarantees, or express or implied warranties of any kind Atlanta compiles market data by using a third-party database for the proprietary analysis of office regarding the accuracy or completeness of the information and details provided herein, including but properties in the Atlanta Metropolitan Area. not limited to the implied warranty of suitability and fitness for a particular purpose. © Copyright 2019 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, Research and Database Coordinator The information provided herein, including any sale or lease terms, is being provided subject to errors, Market report created by: Spencer Godwin, Marketing & Research Assistant

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