Costar Office Report

Home , Downtown Atlanta, Peachtree Center

CoStar Office Statistics

Year-End 2018 Atlanta Office Market Year-End 2018 – Atlanta Atlanta Office Market

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Table of Contents

Table of Contents ...... A Methodology...... B Terms & Definitions...... C Market Highlights & Overview ...... 1 CoStar Markets & Submarkets ...... 4 Inventory & Development Analysis...... 5 Inventory & Development Analysis Select Top Deliveries Select Top Under Construction Properties Figures at a Glance...... 9 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...... 17 Select Top Lease Transactions Sales Activity Analysis...... 19 Sales Activity Analysis Select Top Sales Transactions Analysis of Individual CoStar Submarket Clusters ...... 21 Buckhead Market Central Perimeter Market Downtown Atlanta Market Gainesville Market Jefferson Market Midtown Atlanta Market North Fulton Market Northeast Atlanta Market Northlake Market Northwest Atlanta Market South Atlanta Market West Atlanta 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 global database includes approximately 119 billion square feet of coverage in 5.4 million properties. All rental rates reported in the CoStar Office Report have been converted to a Full Service equivalent rental rate.

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Terms & Definitions

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

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

D CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 1 Atlanta – Year-End 2018 Year-End 2018 – Atlanta Atlanta Office Market Atlanta Office Market Overview Atlanta’s Vacancy Decreases to 11.3% Net Absorption Positive 1,423,758 SF in the Quarter

he Atlanta Office market ended the fourth quarter 2018 tive 44,412 in the second quarter 2018, and positive 578,520 in with a vacancy rate of 11.3%. The vacancy rate was the first quarter 2018. T down over the previous quarter, with net absorption The Class-B office market recorded net absorption of pos- totaling positive 1,423,758 square feet in the fourth quarter. itive 403,304 square feet in the fourth quarter 2018, compared Vacant sublease space decreased in the quarter, ending the to positive 28,467 square feet in the third quarter 2018, positive quarter at 1,754,880 square feet. Rental rates ended the 124,745 in the second quarter 2018, and positive 356,899 in the fourth quarter at $24.94, an increase over the previous quarter. first quarter 2018. A total of 10 buildings delivered to the market in the quarter The Class-C office market recorded net absorption of pos- totaling 598,815 square feet, with 4,927,008 square feet still itive 142,381 square feet in the fourth quarter 2018 compared under construction at the end of the quarter. to positive 50,081 square feet in the third quarter 2018, positive 175,060 in the second quarter 2018, and positive 30,827 in the Absorption first quarter 2018. Net absorption for the overall Atlanta office market was Net absorption for Atlanta’s central business district was positive 1,423,758 square feet in the fourth quarter 2018. That positive 636,360 square feet in the fourth quarter 2018. That compares to negative 33,191 square feet in the third quarter compares to positive 35,629 square feet in the third quarter 2018, positive 344,217 square feet in the second quarter 2018, 2018, negative 218,188 in the second quarter 2018, and positive and positive 966,246 square feet in the first quarter 2018. 664,982 in the first quarter 2018. Tenants moving out of large blocks of space in 2018 Net absorption for the suburban markets was positive include: State Farm moving out of 187,358 square feet at 115 787,398 square feet in the fourth quarter 2018. That compares Perimeter Center Pl NE; Coca-Cola moving out of 171,769 to negative 68,820 square feet in third quarter 2018, positive square feet at 303 Peachtree Center Ave NE; and AT&T moving 562,405 in the second quarter 2018, and positive 301,264 in the out of 144,362 square feet at 675 W Peachtree St NW. first quarter 2018. Tenants moving into large blocks of space in 2018 include: NCR Corp. moving into 484,990 square feet at 864 Spring St; Vacancy Mercedes-Benz USA moving into 225,000 square feet at One The office vacancy rate in the Atlanta market area Mercedes-Benz Dr; and HD Supply, Inc. moving into 222,000 decreased to 11.3% at the end of the fourth quarter 2018. The square feet at 3400 SE Cumberland Blvd. vacancy rate was 11.6% at the end of the third quarter 2018, The Class-A office market recorded net absorption of pos- 11.6% at the end of the second quarter 2018, and 11.4% at the itive 878,073 square feet in the fourth quarter 2018, compared end of the first quarter 2018. to negative 111,739 square feet in the third quarter 2018, posi- Class-A projects reported a vacancy rate of 13.9% at the

Vacancy Rates by Class 1986-2018

A B C Total Market

30%

25%

20% Rate 15% Vacancy 10%

0% 198619871988198919901991199219931994199519961997199819992000200120022003200420052006200720082009201020112012201320142015201620172018 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q

Source: CoStar Property®

Net Absorption Deliveries Atlanta United States 1.6 14.0% 1.42 1.36 1.4 1.24 12.0% 1.2 1.10 1.04 0.94 0.97 10.0% 1.0 0.85

0.8 0.70 Rate 8.0% 0.63 0.60 0.57 0.54 0.6 6.0% Millions SF

0.34 Vacancy 0.4 0.29 0.22 4.0% 0.16 0.2 0.08 2.0% 0.0 (0.03) (0.2) (0.07) 0.0% 2016 3q 2017 1q 2017 3q 2018 1q 2018 3q 2016 3q 2017 1q 2017 3q 2018 1q 2018 3q

Source: CoStar Property® Source: CoStar Property® Atlanta � Year-End 2018 Year-End 2018 – Atlanta Atlanta Office Market Atlanta Office Market Overview

end of the fourth quarter 2018, 14.2% at the end of the third Atlanta’s Class-A projects reported vacant sublease quarter 2018, 14.1% at the end of the second quarter 2018, and space of 1,277,393 square feet at the end of fourth quarter 13.7% at the end of the first quarter 2018. 2018, down from the 1,354,327 square feet reported at the end Class-B projects reported a vacancy rate of 11.2% at the of the third quarter 2018. There were 1,418,469 square feet of end of the fourth quarter 2018, 11.6% at the end of the first, sublease space vacant at the end of the second quarter 2018, second and third quarter 2018. and 1,239,765 square feet at the end of the first quarter 2018. Class-C projects reported a vacancy rate of 5.0% at the Class-B projects reported vacant sublease space of end of the fourth quarter 2018, 5.3% at the end of third quarter 449,056 square feet at the end of the fourth quarter 2018, up 2018, 5.4% at the end of the second quarter 2018, and 5.7% at from the 406,974 square feet reported at the end of the third the end of the first quarter 2018. quarter 2018. At the end of the second quarter 2018 there were The overall vacancy rate in Atlanta’s central business dis- 312,849 square feet, and at the end of the first quarter 2018 trict at the end of the fourth quarter 2018 decreased to 10.5%. there were 301,351 square feet vacant. The vacancy rate was 10.7% at the end of the third quarter Class-C projects reported decreased vacant sublease 2018, 10.8% at the end of the second quarter 2018, and 10.3% space from the third quarter 2018 to the fourth quarter 2018. at the end of the first quarter 2018. Sublease vacancy went from 42,770 square feet to 28,431 The vacancy rate in the suburban markets decreased to square feet during that time. There was 36,257 square feet at 11.6% in the fourth quarter 2018. The vacancy rate was 11.9% at the end of the second quarter 2018, and 46,294 square feet at Vacancy Rates by Class 1986-2018 the end of the third quarter 2018, 11.8% at the end of the first the end of the first quarter 2018.

A B C andTotal second Market quarter 2018. Sublease vacancy in Atlanta’s central business district stood at 309,316 square feet at the end of the fourth quarter Largest Lease Signings 30% 2018. It was 406,651 square feet at the end of the third quar- The largest lease signings occurring in 2018 included: the ter 2018, 455,224 square feet at the end of the second quarter 25% 210,000-square-foot lease signed by Thyssenkrupp at 3 Battery 2018, and 492,262 square feet at the end of the first quarter Ave in the Northwest Atlanta market; the 204,211-square-foot 2018. 20% deal signed by Insight Global at 1224 Hammond Dr in the Sublease vacancy in the suburban markets ended the

Rate Central Perimeter market; and the 178,001-square-foot lease fourth quarter 2018 at 1,445,564 square feet. At the end of 15% signed by Northside Hospital at 1001 Perimeter Summit in the the third quarter 2018 sublease vacancy was 1,397,420 square

Vacancy Central Perimeter market. 10% feet, was 1,312,351 square feet at the end of the second quar- Sublease Vacancy ter 2018, and was 1,095,148 square feet at the end of the first 5% The amount of vacant sublease space in the Atlanta mar- quarter 2018. ket decreased to 1,754,880 square feet by the end of the fourth Rental Rates 0% quarter 2018, from 1,804,071 square feet at the end of the third 198619871988198919901991199219931994199519961997199819992000200120022003200420052006200720082009201020112012201320142015201620172018 The average quoted asking rental rate for available office 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q quarter4q 4q 4q2018.4q There4q 4q was4q 4q1,767,5754q 4q square4q 4q feet4q 4qvacant4q 4q at the space, all classes, was $24.94 per square foot per year at the end of the second quarter 2018 and 1,587,410 square feet at the Source: CoStar Property® end of the fourth quarter 2018 in the Atlanta market area. This end of the first quarter 2018. represented a 1.4% increase in quoted rental rates from the end Absorption & Deliveries U.S. Vacancy Comparison of the third quarter 2018, when rents were reported at $24.60 per square foot. Past 10 Quarters Past 10 Quarters The average quoted rate within the Class-A sector was Net Absorption Deliveries Atlanta United States 1.6 14.0% $29.84 at the end of the fourth quarter 2018, while Class-B 1.42 1.36 rates stood at $19.24, and Class-C rates at $15.65. At the end 1.4 1.24 12.0% of the third quarter 2018, Class-A rates were $29.31 per square 1.2 1.10 1.04 foot, Class-B rates were $19.16, and Class-C rates were $15.80. 0.94 0.97 10.0% 1.0 0.85 The average quoted asking rental rate in Atlanta’s CBD

0.8 0.70 Rate 8.0% was $32.62 at the end of the fourth quarter 2018, and $22.28 in 0.63 0.60 0.57 0.54 0.6 6.0% the suburban markets. In the third quarter 2018, quoted rates Millions SF

0.34 Vacancy 0.4 0.29 were $31.97 in the CBD and $22.16 in the suburbs. 0.22 4.0% 0.16 0.2 0.08 Deliveries and Construction 2.0% 0.0 During the fourth quarter 2018, 10 buildings totaling (0.03) (0.2) (0.07) 0.0% 598,815 square feet were completed in the Atlanta market 2016 3q 2017 1q 2017 3q 2018 1q 2018 3q 2016 3q 2017 1q 2017 3q 2018 1q 2018 3q area. This compares to four buildings totaling 81,384 square

Source: CoStar Property® Source: CoStar Property®

A B C Total Market

30%

25%

20% Rate 15% Vacancy 10%

Atlanta � Year-End 2018 0% Year-End 2018 – Atlanta 198619871988198919901991199219931994199519961997199819992000200120022003200420052006200720082009201020112012201320142015201620172018 Atlanta Office Market Atlanta Office Market4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q Overview Source: CoStar Property®

feet that were completed in the third quarter 2018, 12 buildings Absorption & Deliveries U.S. Vacancy Comparison totaling 703,639 square feet completed in the second quarter Past 10 Quarters Past 10 Quarters 2018, and 1,244,596 square feet in 20 buildings completed in Net Absorption Deliveries Atlanta United States the first quarter 2018. 1.6 14.0% 1.42 There were 4,927,008 square feet of office space under 1.36 1.4 construction at the end of the fourth quarter 2018. 1.24 12.0% 1.2 1.10 Some of the notable 2018 deliveries include: 864 Spring 1.04 0.94 0.97 10.0% 1.0 St, a 485,000-square-foot facility that delivered in first quarter 0.85

2018 and is now 100% occupied by NCR, and 4004 Perimeter 0.8 0.70 Rate 8.0% 0.63 0.60 0.57 0.54 Summit, a 355,250-square-foot building that delivered in first 0.6 6.0% Millions SF

0.34 Vacancy quarter 2018 and is now 14% leased by Carr, Riggs & Ingram. 0.4 0.29 0.22 4.0% The largest projects underway at the end of fourth quarter 0.16 0.2 0.08 2018 were 756 W Peachtree St - Coda, a 760,000-square-foot 2.0% building with 68% of its space pre-leased to multiple tenants, 0.0 (0.03) and 240 Perimeter Center Pky, a 670,000-square-foot facility (0.2) (0.07) 0.0% 2016 3q 2017 1q 2017 3q 2018 1q 2018 3q 2016 3q 2017 1q 2017 3q 2018 1q 2018 3q that is 100% pre-leased to State Farm. Source: CoStar Property® Source: CoStar Property® Inventory square feet for an average price per square foot of $148.57. Total office inventory in the Atlanta market area amount- Total office building sales activity in 2018 was up compared ed to 315,552,565 square feet in 16,598 buildings as of the end to 2017. In the first nine months of 2018, the market saw 124 of the fourth quarter 2018. The Class-A office sector consisted office sales transactions with a total volume of $2,294,975,136. of 130,781,423 square feet in 588 projects. There were 6,230 The price per square foot averaged $186.93. In the same first Class-B buildings totaling 130,314,749 square feet, and the nine months of 2017, the market posted 105 transactions with Class-C sector consisted of 54,456,393 square feet in 9,780 a total volume of $1,853,837,221. The price per square foot aver- buildings. Within the Office market there were 690 owner- aged $152.82. occupied buildings accounting for 34,720,681 square feet of Cap rates have been lower in 2018, averaging 7.94% com- office space. pared to the same period in 2017 when they averaged 8.06%. One of the largest transactions that has occurred within Sales Activity the last four quarters in the Atlanta market is the sale of Three Tallying office building sales of 15,000 square feet or Alliance Center at 3550 Lenox Rd NE in Atlanta. This 506,647- larger, Atlanta office sales figures rose during the third quarter square-foot office building sold for $270,000,000, or $532.92 2018 in terms of dollar volume compared to the second quarter per square foot. The property sold on 1/5/2018, at a 6.35% cap of 2018. rate. In the third quarter, 42 office transactions closed with a total volume of $1,075,846,236. The 42 buildings totaled 5,509,871 square feet and the average price per square foot Reports compiled by: Emily Thompson, Senior Research Manager; Leo equated to $195.26 per square foot. That compares to 39 Chappell and Drew Kisamore, Research Managers transactions totaling $405,990,287 in the second quarter 2018. The total square footage in the second quarter was 2,732,629

2 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 3 Atlanta � Year-End 2018 Year-End 2018 – Atlanta Atlanta Office Market Atlanta Office Market Markets

CoStar Submarket Clusters & Submarkets

In analyzing metropolitan areas, CoStar has developed geographic designations to help group properties together, called Markets, Submarket Clusters and Submarkets. Markets 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. Markets are then divided into Submarket Clusters, 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. Submarket Clusters Submarkets Buckhead Lower Buckhead* Upper Buckhead* Central Perimeter Central Perimeter Downtown Atlanta Downtown Atlanta* Gainesville Gainesville/Hall County Jefferson Jackson County Midtown Atlanta Midtown/Pershing Point* Northside Dr/Georgia Tech North Fulton Dawson County N Fulton/Forsyth County Northeast Atlanta Barrow County Duluth/Suwanee/Buford Lawrenceville/Lilburn Norcross/Ptree Corners Walton County Northlake Chamblee/Dville/N D Hills Decatur I-20 East/Conyers Newton County Northlake/Lavista Stone Mountain Northwest Atlanta Bartow County Cherokee County Cumberland/Galleria East Cobb Kennesaw/Town Center Pickens County South Atlanta Butts County Fayette/Coweta County Jasper County Lamar County Meriwether County North Clayton/Airport Pike County South Clayton/Henry Cnty Spalding County West Atlanta Douglasville/Lithia Springs Haralson County Heard County Villa Rica/West Outlying W Carroll County West Atlanta

* Submarkets comprising the CBD. For statistics reference the CBD vs Suburban Figures at a Glance Page.

4 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 5 Atlanta � Year-End 2018 Year-End 2018 – Atlanta Atlanta Office Market Atlanta Office Market Inventory & development

Historical Deliveries 1982 - 2018

Deliveries Average Delivered SF 16.0

13.8 14.0 12.7 12.9 12.0 11.6 11.4 12.0 11.0 9.7 10.0 8.6 7.8 7.7 8.0 7.4 7.1 6.3 6.4 6.3 5.8 5.6 Millions of SF 6.0 5.1 5.0 4.4 4.2 4.0 3.7 3.5 4.0 3.0 3.2 2.5 2.8 2.1 1.5 1.6 1.5 2.0 1.1 1.2 0.6 0.7

0.0 1982 1986 1990 1994 1998 2002 2006 2010 2014 2018

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 Midtown Atlanta 6 2,151,739 941,636 43.8% 60,262 358,623 Central Perimeter 2 1,005,000 874,350 87.0% 50,584 502,500 North Fulton 11 837,687 457,914 54.7% 19,671 76,153 Northwest Atlanta 5 389,000 226,200 58.1% 15,816 77,800 Northlake 3 271,500 259,500 95.6% 13,060 90,500 Northeast Atlanta 6 69,000 35,630 51.6% 12,535 11,500 Downtown Atlanta 1 65,000 61,100 94.0% 90,879 65,000 South Atlanta 1 51,272 27,174 53.0% 9,620 51,272 Buckhead 1 49,200 49,200 100.0% 56,749 49,200 West Atlanta 1 37,610 27,455 73.0% 7,149 37,610 All Other 0 0 0 0.0% 8,301 0 Totals 37 4,927,008 2,960,159 60.1% 19,011 133,162

Source: CoStar Property®

Recent Deliveries Future Deliveries Leased & Un-Leased SF in Deliveries Since 2014 Preleased & Un-Leased SF in Properties Scheduled to Deliver

Leased Un-Leased Preleased Un-Leased 3.5 1,600

3.0 1,400

1,200

2.5 T 1,000 2.0 800

1.5 sands of SF Millions of SF ou 600 Th 1.0 400

0.5 200

0.0 0 2014 2016 2018 2019 1q 2019 3q

Source: CoStar Property® Source: CoStar Property®

Historical Construction Starts & Deliveries Square Footage Per Quarter Starting and Completing Construction

Construction Starts Deliveries 2.0 1.85

1.45 1.47 1.5 1.36 1.24 1.26 1.18

0.94 1.0

0.66 0.70 0.63 0.63 0.60 0.54 0.46 0.49 0.51 0.5 0.37 Millions of SF 0.26 0.27 0.260.29 0.28 0.25 0.14 0.15 0.16 0.09 0.10 0.08 0.08 0.0

(0.22) (0.5) 2015 1q 2016 1q 2017 1q 2018 1q

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 39 559,957 385,489 68.8% $27.86 121,327 438,630

50,000 SF - 99,999 SF 2 121,000 117,400 97.0% $34.98 0 121,000

100,000 SF - 249,999 SF 6 962,911 765,943 79.5% $34.21 447,000 515,911

250,000 SF - 499,999 SF 3 1,117,250 811,735 72.7% $39.92 762,000 355,250

>= 500,000 SF 0 0 0 0.0% $0.00 0 0

Source: CoStar Property®

Recent Development by Tenancy Existing Inventory Comparison Based on RBA Developed for Single & Multi Tenant Use Based on Total RBA 2018 Deliveries Currently Under Construction By Class By Space Type

17% 21% 51% 37% 41% 49% 63% 42% 79%

Multi Single Multi Single Multi Single Class A Class B Class C

Source: CoStar Property® Source: CoStar Property®

6 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 7 Atlanta � Year-End 2018 Year-End 2018 – Atlanta Atlanta Office Market Atlanta Office Market Inventory & development

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8 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 9 Atlanta � Year-End 2018 Year-End 2018 – Atlanta Atlanta Office Market Atlanta Office Market Figures at a Glance

Class A Market Statistics Year-End 2018 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

Buckhead 62 17,889,863 2,652,424 2,761,618 15.4% 147,649 0 0 $35.46

Central Perimeter 89 23,827,631 2,888,368 3,194,078 13.4% 344,150 580,250 1,005,000 $29.90

Downtown Atlanta 28 15,984,046 2,482,993 2,559,185 16.0% 58,913 0 65,000 $27.24

Gainesville 4 300,388 29,807 29,807 9.9% (2,926) 0 0 $23.93

Jefferson 0 0 0 0 0.0% 0 0 0 $0.00

Midtown Atlanta 55 19,372,200 1,880,339 1,987,649 10.3% 742,233 930,676 2,151,739 $37.19

North Fulton 124 17,747,593 2,192,825 2,332,420 13.1% 48,605 276,932 782,387 $26.30

Northeast Atlanta 69 8,906,961 1,456,785 1,566,738 17.6% (187,616) 27,944 20,000 $21.47

Northlake 36 5,117,016 437,197 450,637 8.8% 153,796 110,000 258,000 $25.12

Northwest Atlanta 89 19,412,406 2,552,181 2,960,426 15.3% 13,716 222,000 369,000 $27.32

South Atlanta 31 2,133,719 216,485 224,239 10.5% 62,880 70,000 51,272 $25.30

West Atlanta 1 89,600 81,734 81,734 91.2% 7,866 0 0 $24.48

Totals 588 130,781,423 16,871,138 18,148,531 13.9% 1,389,266 2,217,802 4,702,398 $29.84

Source: CoStar Property®

Class B Market Statistics Year-End 2018 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

Buckhead 108 4,362,102 277,800 288,225 6.6% 10,290 0 49,200 $25.62

Central Perimeter 271 8,508,383 1,355,814 1,368,761 16.1% 123,321 0 0 $20.90

Downtown Atlanta 163 15,668,787 766,844 766,844 4.9% 263,182 61,000 0 $22.48

Gainesville 173 2,386,926 162,816 162,816 6.8% 37,955 0 0 $18.13

Jefferson 30 371,804 0 0 0.0% 5,500 5,500 0 $14.49

Midtown Atlanta 147 5,361,422 184,968 193,263 3.6% (10,036) 34,899 0 $27.33

North Fulton 944 15,741,800 1,622,922 1,822,063 11.6% (135,901) 104,084 55,300 $19.77

Northeast Atlanta 1,347 20,285,932 3,361,146 3,415,628 16.8% 71,522 71,793 49,000 $16.65

Northlake 677 16,579,581 1,760,639 1,765,436 10.6% 109,025 0 13,500 $19.60

Northwest Atlanta 1,272 22,941,387 2,724,630 2,775,510 12.1% 206,606 44,641 20,000 $19.66

South Atlanta 833 14,530,155 1,614,096 1,722,185 11.9% 163,600 69,282 0 $17.97

West Atlanta 265 3,576,470 555,394 555,394 15.5% 68,351 19,433 37,610 $17.08

Totals 6,230 130,314,749 14,387,069 14,836,125 11.4% 913,415 410,632 224,610 $19.24

Source: CoStar Property®

Class C Market Statistics Year-End 2018 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

Buckhead 251 1,639,220 38,043 38,043 2.3% 17,889 0 0 $24.85

Central Perimeter 332 2,668,041 145,767 145,767 5.5% 19,179 0 0 $16.26

Downtown Atlanta 209 4,698,848 370,814 370,814 7.9% 21,186 0 0 $19.32

Gainesville 395 1,918,055 85,065 89,865 4.7% 13,613 0 0 $14.44

Jefferson 55 476,378 5,412 5,412 1.1% (2,850) 0 0 $2.18

Midtown Atlanta 239 1,841,770 37,253 37,253 2.0% 40,447 0 0 $24.24

North Fulton 848 4,201,015 145,847 149,668 3.6% 89,012 0 0 $15.46

Northeast Atlanta 1,480 7,109,689 462,903 469,762 6.6% (2,764) 0 0 $13.17

Northlake 1,628 8,876,751 347,898 350,798 4.0% 63,802 0 0 $16.28

Northwest Atlanta 1,907 9,331,975 363,546 363,546 3.9% 108,524 0 0 $15.07

South Atlanta 1,779 8,762,152 536,451 543,152 6.2% 9,799 0 0 $16.31

West Atlanta 657 2,932,499 157,175 160,525 5.5% 20,512 0 0 $15.48

Totals 9,780 54,456,393 2,696,174 2,724,605 5.0% 398,349 0 0 $15.65

Source: CoStar Property®

Total Office Market Statistics Year-End 2018 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

Buckhead 421 23,891,185 2,968,267 3,087,886 12.9% 175,828 0 49,200 $34.44

Central Perimeter 692 35,004,055 4,389,949 4,708,606 13.5% 486,650 580,250 1,005,000 $27.13

Downtown Atlanta 400 36,351,681 3,620,651 3,696,843 10.2% 343,281 61,000 65,000 $26.16

Gainesville 572 4,605,369 277,688 282,488 6.1% 48,642 0 0 $18.14

Jefferson 85 848,182 5,412 5,412 0.6% 2,650 5,500 0 $5.50

Midtown Atlanta 441 26,575,392 2,102,560 2,218,165 8.3% 772,644 965,575 2,151,739 $36.24

North Fulton 1,916 37,690,408 3,961,594 4,304,151 11.4% 1,716 381,016 837,687 $23.17

Northeast Atlanta 2,896 36,302,582 5,280,834 5,452,128 15.0% (118,858) 99,737 69,000 $18.03

Northlake 2,341 30,573,348 2,545,734 2,566,871 8.4% 326,623 110,000 271,500 $20.35

Northwest Atlanta 3,268 51,685,768 5,640,357 6,099,482 11.8% 328,846 266,641 389,000 $23.23

South Atlanta 2,643 25,426,026 2,367,032 2,489,576 9.8% 236,279 139,282 51,272 $18.20

West Atlanta 923 6,598,569 794,303 797,653 12.1% 96,729 19,433 37,610 $16.69

Totals 16,598 315,552,565 33,954,381 35,709,261 11.3% 2,701,030 2,628,434 4,927,008 $24.94

Source: CoStar Property®

10 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 11 Atlanta � Year-End 2018 Year-End 2018 – Atlanta Atlanta Office Market Atlanta Office Market Figures at a Glance

Class A Submarket Statistics Year-End 2018 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Barrow County 0 0 0 0 0.0% 0 0 0 $0.00 Bartow County 0 0 0 0 0.0% 0 0 0 $0.00 Butts County 0 0 0 0 0.0% 0 0 0 $0.00 Central Perimeter 89 23,827,631 2,888,368 3,194,078 13.4% 344,150 580,250 1,005,000 $29.90 Chamblee/Dville/N D . 18 2,530,325 203,566 203,566 8.0% 154,101 110,000 258,000 $26.67 Cherokee County 8 432,442 17,693 19,193 4.4% 5,991 0 0 $23.18 Cumberland/Galleria 65 17,209,743 2,495,711 2,856,925 16.6% 63,483 222,000 369,000 $27.36 Dawson County 0 0 0 0 0.0% 0 0 0 $0.00 Decatur 10 1,549,945 47,298 60,738 3.9% (4,946) 0 0 $25.75 Douglasville/Lithia. 0 0 0 0 0.0% 0 0 0 $0.00 Downtown Atlanta 28 15,984,046 2,482,993 2,559,185 16.0% 58,913 0 65,000 $27.24 Duluth/Suwanee/Bufor. 40 6,023,338 690,493 780,690 13.0% (27,232) 27,944 0 $21.57 East Cobb 2 277,000 0 0 0.0% 0 0 0 $0.00 Fayette/Coweta Count. 11 748,798 115,760 115,760 15.5% 29,467 40,000 0 $25.27 Gainesville/Hall Cou. 4 300,388 29,807 29,807 9.9% (2,926) 0 0 $23.93 Haralson County 0 0 0 0 0.0% 0 0 0 $0.00 Heard County 0 0 0 0 0.0% 0 0 0 $0.00 I-20 East/Conyers 4 239,257 138,961 138,961 58.1% 8,713 0 0 $22.02 Jackson County 0 0 0 0 0.0% 0 0 0 $0.00 Jasper County 0 0 0 0 0.0% 0 0 0 $0.00 Kennesaw/Town Center 14 1,493,221 38,777 84,308 5.6% (55,758) 0 0 $26.35 Lamar County 0 0 0 0 0.0% 0 0 0 $0.00 Lawrenceville/Lilbur. 5 528,354 83,340 85,883 16.3% 7,317 0 0 $28.01 Lower Buckhead 5 407,665 133,374 133,374 32.7% 76,629 0 0 $31.15 Meriwether County 0 0 0 0 0.0% 0 0 0 $0.00 Midtown/Pershing Poi. 48 18,626,031 1,806,452 1,911,662 10.3% 609,948 930,676 1,715,072 $36.71 N Fulton/Forsyth Cou. 124 17,747,593 2,192,825 2,332,420 13.1% 48,605 276,932 782,387 $26.30 Newton County 1 55,385 0 0 0.0% 0 0 0 $0.00 Norcross/Ptree Corne. 24 2,355,269 682,952 700,165 29.7% (167,701) 0 20,000 $20.83 North Clayton/Airpor. 13 1,127,986 90,725 98,479 8.7% 13,288 0 51,272 $25.31 Northlake/Lavista 3 742,104 47,372 47,372 6.4% (4,072) 0 0 $24.27 Northside Dr/Georgia. 7 746,169 73,887 75,987 10.2% 132,285 0 436,667 $45.79 Pickens County 0 0 0 0 0.0% 0 0 0 $0.00 Pike County 0 0 0 0 0.0% 0 0 0 $0.00 South Clayton/Henry. 6 234,935 10,000 10,000 4.3% 20,125 30,000 0 $29.14 Spalding County 1 22,000 0 0 0.0% 0 0 0 $0.00 Stone Mountain 0 0 0 0 0.0% 0 0 0 $0.00 Upper Buckhead 57 17,482,198 2,519,050 2,628,244 15.0% 71,020 0 0 $35.63 Villa Rica/West Outl. 0 0 0 0 0.0% 0 0 0 $0.00 W Carroll County 0 0 0 0 0.0% 0 0 0 $0.00 Walton County 0 0 0 0 0.0% 0 0 0 $0.00 West Atlanta 1 89,600 81,734 81,734 91.2% 7,866 0 0 $24.48 Totals 588 130,781,423 16,871,138 18,148,531 13.9% 1,389,266 2,217,802 4,702,398 $29.84

Source: CoStar Property®

Class B Submarket Statistics Year-End 2018 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Barrow County 65 370,163 49,538 49,538 13.4% 1,368 32,400 0 $20.63 Bartow County 78 751,752 62,846 62,846 8.4% 13,017 0 5,000 $15.05 Butts County 5 39,991 0 1,575 3.9% (1,575) 0 0 $0.00 Central Perimeter 271 8,508,383 1,355,814 1,368,761 16.1% 123,321 0 0 $20.90 Chamblee/Dville/N D . 197 6,098,426 598,073 599,333 9.8% 55,422 0 0 $19.19 Cherokee County 255 2,206,541 171,279 171,279 7.8% 7,339 38,841 10,000 $20.15 Cumberland/Galleria 280 10,856,464 1,586,526 1,595,757 14.7% 136,135 0 0 $20.08 Dawson County 28 265,216 33,564 33,564 12.7% (4,341) 0 0 $18.98 Decatur 109 3,827,845 89,575 89,575 2.3% 24,581 0 13,500 $24.58 Douglasville/Lithia . 127 1,576,073 76,541 76,541 4.9% 3,187 0 0 $15.98 Downtown Atlanta 163 15,668,787 766,844 766,844 4.9% 263,182 61,000 0 $22.48 Duluth/Suwanee/Bufor. 593 9,032,986 1,564,930 1,609,014 17.8% (150,808) 33,393 33,000 $16.63 East Cobb 167 2,145,692 169,973 169,973 7.9% 64,099 0 0 $18.00 Fayette/Coweta Count. 329 3,449,073 278,446 286,703 8.3% 20,586 8,282 0 $18.23 Gainesville/Hall Cou. 173 2,386,926 162,816 162,816 6.8% 37,955 0 0 $18.13 Haralson County 4 45,083 0 0 0.0% 0 0 0 $0.00 Heard County 1 11,996 0 0 0.0% 0 0 0 $0.00 I-20 East/Conyers 183 2,150,559 179,519 183,056 8.5% 41,670 0 0 $17.98 Jackson County 30 371,804 0 0 0.0% 5,500 5,500 0 $14.49 Jasper County 1 4,400 0 0 0.0% 0 0 0 $0.00 Kennesaw/Town Center 459 6,715,100 727,164 768,813 11.4% (42,210) 5,800 5,000 $19.82 Lamar County 2 17,174 12,778 12,778 74.4% (778) 0 0 $0.00 Lawrenceville/Lilbur. 394 3,963,641 333,648 333,648 8.4% 81,252 6,000 16,000 $17.04 Lower Buckhead 21 1,667,380 69,283 75,708 4.5% 31,982 0 49,200 $26.90 Meriwether County 3 8,404 0 0 0.0% 0 0 0 $0.00 Midtown/Pershing Poi. 113 4,652,227 141,165 149,460 3.2% (23,495) 13,687 0 $27.54 N Fulton/Forsyth Cou. 916 15,476,584 1,589,358 1,788,499 11.6% (131,560) 104,084 55,300 $19.79 Newton County 47 441,069 13,025 13,025 3.0% (5,770) 0 0 $15.90 Norcross/Ptree Corne. 214 6,458,078 1,398,289 1,408,687 21.8% 139,972 0 0 $16.35 North Clayton/Airpor. 260 8,069,507 1,125,090 1,202,366 14.9% 92,820 50,000 0 $17.87 Northlake/Lavista 100 3,516,985 847,318 847,318 24.1% (11,868) 0 0 $19.97 Northside Dr/Georgia. 34 709,195 43,803 43,803 6.2% 13,459 21,212 0 $26.40 Pickens County 33 265,838 6,842 6,842 2.6% 28,226 0 0 $11.44 Pike County 1 3,672 0 0 0.0% 0 0 0 $0.00 South Clayton/Henry . 197 2,685,826 176,377 197,358 7.3% 45,677 11,000 0 $18.52 Spalding County 35 252,108 21,405 21,405 8.5% 6,870 0 0 $16.98 Stone Mountain 41 544,697 33,129 33,129 6.1% 4,990 0 0 $14.68 Upper Buckhead 87 2,694,722 208,517 212,517 7.9% (21,692) 0 0 $25.02 Villa Rica/West Outl. 56 637,484 48,325 48,325 7.6% 10,293 0 0 $17.83 W Carroll County 42 410,099 20,311 20,311 5.0% 18,950 6,440 0 $18.63 Walton County 81 461,064 14,741 14,741 3.2% (262) 0 0 $17.29 West Atlanta 35 895,735 410,217 410,217 45.8% 35,921 12,993 37,610 $16.81 Totals 6,230 130,314,749 14,387,069 14,836,125 11.4% 913,415 410,632 224,610 $19.24

Source: CoStar Property®

12 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 13 Atlanta � Year-End 2018 Year-End 2018 – Atlanta Atlanta Office Market Atlanta Office Market Figures at a Glance

Class C Submarket Statistics Year-End 2018 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Barrow County 99 391,218 8,389 10,569 2.7% 11,193 0 0 $9.34 Bartow County 136 539,066 17,090 17,090 3.2% 5,800 0 0 $13.39 Butts County 49 189,057 5,454 5,454 2.9% (2,754) 0 0 $0.00 Central Perimeter 332 2,668,041 145,767 145,767 5.5% 19,179 0 0 $16.26 Chamblee/Dville/N D . 363 2,822,670 98,966 98,966 3.5% 51,537 0 0 $16.54 Cherokee County 292 1,434,943 23,593 23,593 1.6% 11,170 0 0 $16.77 Cumberland/Galleria 407 2,551,163 122,165 122,165 4.8% 61,579 0 0 $14.47 Dawson County 33 180,969 14,283 14,283 7.9% (4,295) 0 0 $16.75 Decatur 277 1,900,842 110,874 113,774 6.0% (45,229) 0 0 $17.59 Douglasville/Lithia . 269 1,107,787 56,047 59,397 5.4% 1,407 0 0 $16.69 Downtown Atlanta 209 4,698,848 370,814 370,814 7.9% 21,186 0 0 $19.32 Duluth/Suwanee/Bufor. 372 1,873,986 123,653 125,419 6.7% (38,307) 0 0 $14.01 East Cobb 203 990,415 31,492 31,492 3.2% 12,191 0 0 $13.96 Fayette/Coweta Count. 419 2,024,703 108,099 108,099 5.3% (5,175) 0 0 $13.40 Gainesville/Hall Cou. 395 1,918,055 85,065 89,865 4.7% 13,613 0 0 $14.44 Haralson County 31 144,173 3,755 3,755 2.6% 5,600 0 0 $12.04 Heard County 0 0 0 0 0.0% 0 0 0 $0.00 I-20 East/Conyers 419 1,851,816 54,755 54,755 3.0% 10,696 0 0 $14.16 Jackson County 55 476,378 5,412 5,412 1.1% (2,850) 0 0 $2.18 Jasper County 8 32,857 0 0 0.0% 2,300 0 0 $0.00 Kennesaw/Town Center 836 3,705,352 169,206 169,206 4.6% 6,106 0 0 $15.62 Lamar County 10 65,861 0 0 0.0% 0 0 0 $0.00 Lawrenceville/Lilbur. 679 2,807,952 107,574 107,574 3.8% 33,872 0 0 $14.63 Lower Buckhead 30 511,626 9,880 9,880 1.9% (65) 0 0 $26.08 Meriwether County 24 71,612 1,662 1,662 2.3% (1,662) 0 0 $0.00 Midtown/Pershing Poi. 170 1,305,736 32,803 32,803 2.5% 13,221 0 0 $24.98 N Fulton/Forsyth Cou. 815 4,020,046 131,564 135,385 3.4% 93,307 0 0 $15.39 Newton County 144 532,396 10,986 10,986 2.1% 1,264 0 0 $17.38 Norcross/Ptree Corne. 221 1,632,065 204,582 207,495 12.7% (9,572) 0 0 $12.41 North Clayton/Airpor. 742 3,970,504 341,390 348,091 8.8% (13,399) 0 0 $14.89 Northlake/Lavista 220 1,008,757 54,951 54,951 5.4% 20,306 0 0 $16.23 Northside Dr/Georgia. 69 536,034 4,450 4,450 0.8% 27,226 0 0 $23.70 Pickens County 33 111,036 0 0 0.0% 11,678 0 0 $21.54 Pike County 8 98,972 0 0 0.0% 0 0 0 $0.00 South Clayton/Henry . 390 1,690,842 43,543 43,543 2.6% 19,194 0 0 $17.73 Spalding County 129 617,744 36,303 36,303 5.9% 11,295 0 0 $30.65 Stone Mountain 205 760,270 17,366 17,366 2.3% 25,228 0 0 $13.61 Upper Buckhead 221 1,127,594 28,163 28,163 2.5% 17,954 0 0 $24.75 Villa Rica/West Outl. 155 700,987 30,853 30,853 4.4% 7,200 0 0 $13.26 W Carroll County 96 508,575 31,227 31,227 6.1% 19,939 0 0 $9.33 Walton County 109 404,468 18,705 18,705 4.6% 50 0 0 $13.25 West Atlanta 106 470,977 35,293 35,293 7.5% (13,634) 0 0 $18.58 Totals 9,780 54,456,393 2,696,174 2,724,605 5.0% 398,349 0 0 $15.65

Source: CoStar Property®

Total Office Submarket Statistics Year-End 2018 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Barrow County 164 761,381 57,927 60,107 7.9% 12,561 32,400 0 $17.43 Bartow County 214 1,290,818 79,936 79,936 6.2% 18,817 0 5,000 $14.66 Butts County 54 229,048 5,454 7,029 3.1% (4,329) 0 0 $0.00 Central Perimeter 692 35,004,055 4,389,949 4,708,606 13.5% 486,650 580,250 1,005,000 $27.13 Chamblee/Dville/N D . 578 11,451,421 900,605 901,865 7.9% 261,060 110,000 258,000 $20.13 Cherokee County 555 4,073,926 212,565 214,065 5.3% 24,500 38,841 10,000 $19.58 Cumberland/Galleria 752 30,617,370 4,204,402 4,574,847 14.9% 261,197 222,000 369,000 $24.83 Dawson County 61 446,185 47,847 47,847 10.7% (8,636) 0 0 $18.41 Decatur 396 7,278,632 247,747 264,087 3.6% (25,594) 0 13,500 $22.78 Douglasville/Lithia . 396 2,683,860 132,588 135,938 5.1% 4,594 0 0 $16.24 Downtown Atlanta 400 36,351,681 3,620,651 3,696,843 10.2% 343,281 61,000 65,000 $26.16 Duluth/Suwanee/Bufor. 1,005 16,930,310 2,379,076 2,515,123 14.9% (216,347) 61,337 33,000 $18.75 East Cobb 372 3,413,107 201,465 201,465 5.9% 76,290 0 0 $17.26 Fayette/Coweta Count. 759 6,222,574 502,305 510,562 8.2% 44,878 48,282 0 $18.41 Gainesville/Hall Cou. 572 4,605,369 277,688 282,488 6.1% 48,642 0 0 $18.14 Haralson County 35 189,256 3,755 3,755 2.0% 5,600 0 0 $12.04 Heard County 1 11,996 0 0 0.0% 0 0 0 $0.00 I-20 East/Conyers 606 4,241,632 373,235 376,772 8.9% 61,079 0 0 $17.74 Jackson County 85 848,182 5,412 5,412 0.6% 2,650 5,500 0 $5.50 Jasper County 9 37,257 0 0 0.0% 2,300 0 0 $0.00 Kennesaw/Town Center 1,309 11,913,673 935,147 1,022,327 8.6% (91,862) 5,800 5,000 $19.67 Lamar County 12 83,035 12,778 12,778 15.4% (778) 0 0 $0.00 Lawrenceville/Lilbur. 1,078 7,299,947 524,562 527,105 7.2% 122,441 6,000 16,000 $17.62 Lower Buckhead 56 2,586,671 212,537 218,962 8.5% 108,546 0 49,200 $29.23 Meriwether County 27 80,016 1,662 1,662 2.1% (1,662) 0 0 $0.00 Midtown/Pershing Poi. 331 24,583,994 1,980,420 2,093,925 8.5% 599,674 944,363 1,715,072 $36.04 N Fulton/Forsyth Cou. 1,855 37,244,223 3,913,747 4,256,304 11.4% 10,352 381,016 837,687 $23.21 Newton County 192 1,028,850 24,011 24,011 2.3% (4,506) 0 0 $16.92 Norcross/Ptree Corne. 459 10,445,412 2,285,823 2,316,347 22.2% (37,301) 0 20,000 $17.47 North Clayton/Airpor. 1,015 13,167,997 1,557,205 1,648,936 12.5% 92,709 50,000 51,272 $17.77 Northlake/Lavista 323 5,267,846 949,641 949,641 18.0% 4,366 0 0 $20.89 Northside Dr/Georgia. 110 1,991,398 122,140 124,240 6.2% 172,970 21,212 436,667 $38.74 Pickens County 66 376,874 6,842 6,842 1.8% 39,904 0 0 $11.73 Pike County 9 102,644 0 0 0.0% 0 0 0 $0.00 South Clayton/Henry . 593 4,611,603 229,920 250,901 5.4% 84,996 41,000 0 $18.27 Spalding County 165 891,852 57,708 57,708 6.5% 18,165 0 0 $26.05 Stone Mountain 246 1,304,967 50,495 50,495 3.9% 30,218 0 0 $14.35 Upper Buckhead 365 21,304,514 2,755,730 2,868,924 13.5% 67,282 0 0 $34.80 Villa Rica/West Outl. 211 1,338,471 79,178 79,178 5.9% 17,493 0 0 $16.91 W Carroll County 138 918,674 51,538 51,538 5.6% 38,889 6,440 0 $15.66 Walton County 190 865,532 33,446 33,446 3.9% (212) 0 0 $15.86 West Atlanta 142 1,456,312 527,244 527,244 36.2% 30,153 12,993 37,610 $17.60 Totals 16,598 315,552,565 33,954,381 35,709,261 11.3% 2,701,030 2,628,434 4,927,008 $24.94

Source: CoStar Property®

14 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 15 Atlanta � Year-End 2018 Year-End 2018 – Atlanta Atlanta Office Market Atlanta Office Market Figures at a Glance

Class A Market Statistics Year-End 2018 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

CBD 138 52,499,940 6,941,869 7,232,465 13.8% 816,510 930,676 1,780,072 $33.70

Suburban 450 78,281,483 9,929,269 10,916,066 13.9% 572,756 1,287,126 2,922,326 $27.20

Totals 588 130,781,423 16,871,138 18,148,531 13.9% 1,389,266 2,217,802 4,702,398 $29.84 Source: CoStar Property®

Class B Market Statistics Year-End 2018 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

CBD 384 24,683,116 1,185,809 1,204,529 4.9% 249,977 74,687 49,200 $25.25

Suburban 5,846 105,631,633 13,201,260 13,631,596 12.9% 663,438 335,945 175,410 $18.91

Totals 6,230 130,314,749 14,387,069 14,836,125 11.4% 913,415 410,632 224,610 $19.24 Source: CoStar Property®

Class C Market Statistics Year-End 2018 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

CBD 630 7,643,804 441,660 441,660 5.8% 52,296 0 0 $20.74

Suburban 9,150 46,812,589 2,254,514 2,282,945 4.9% 346,053 0 0 $14.98

Totals 9,780 54,456,393 2,696,174 2,724,605 5.0% 398,349 0 0 $15.65 Source: CoStar Property®

Class A & B Market Statistics Year-End 2018 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

CBD 522 77,183,056 8,127,678 8,436,994 10.9% 1,066,487 1,005,363 1,829,272 $33.05

Suburban 6,296 183,913,116 23,130,529 24,547,662 13.3% 1,236,194 1,623,071 3,097,736 $23.02

Totals 6,818 261,096,172 31,258,207 32,984,656 12.6% 2,302,681 2,628,434 4,927,008 $25.72 Source: CoStar Property®

Total Office Market Statistics Year-End 2018 Existing Inventory Vacancy YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

CBD 1,152 84,826,860 8,569,338 8,878,654 10.5% 1,118,783 1,005,363 1,829,272 $32.62

Suburban 15,446 230,725,705 25,385,043 26,830,607 11.6% 1,582,247 1,623,071 3,097,736 $22.28

Totals 16,598 315,552,565 33,954,381 35,709,261 11.3% 2,701,030 2,628,434 4,927,008 $24.94 Source: CoStar Property®

��

16 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 17 Atlanta � Year-End 2018 Year-End 2018 – Atlanta Atlanta Office Market Atlanta Office Market Leasing Activity

Historical Rental Rates Based on Full-Service Equivalent Rental Rates

A B C Total Market

$35.00

$30.00

$25.00     $20.00     $15.00   $10.00

$5.00

$0.00 1986 4q 1988 4q 1990 4q 1992 4q 1994 4q 1996 4q 1998 4q 2000 4q 2002 4q 2004 4q 2006 4q 2008 4q 2010 4q 2012 4q 2014 4q 2016 4q 20184 q

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

5% 6% 8% 11% 42% 46%

43% 50% 95% 94%

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 7.0 6.50 $30.00 6.0 $25.00 5.0 $20.00

   4.0   

 $15.00

 3.0 

  $10.00 2.0

$5.00 1.0 0.00 0.01 0.03 0.12 0.06 $0.00 0.0 2016 3q 2017 3q 2018 3q 2019 1q 2019 3q 2020 1q

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

Select Top O�ce Leases Based on Leased Square Footage For Deals Signed in 2018 Building Submarket SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company

1 1120 & 1130 Sanctuary Pky* N Fulton/Forsyth County 265,535 2nd Delta Dental Insurance Company ICON Commercial Interests JLL

2 3 Battery Ave Cumberland/Galleria 210,000 3rd Thyssenkrupp N/A JLL

3 1224 Hammond Dr Central Perimeter 204,211 1st Insight Global Colliers International CBRE

4 1001 Perimeter Summit Central Perimeter 178,001 1st Northside Hospital N/A CBRE

5 3 Glenlake Pky NE Central Perimeter 161,136 3rd Arbys Restaurant Group N/A JLL

6 100 Southcrest Dr South Clayton/Henry Cnty 120,276 2nd Conduent N/A JLL

7 1115 Howell Mill Rd NW Northside Dr/Georgia Tech 112,500 4th WeWork N/A Cushman & Wake�eld

8 3 Edison Dr N Fulton/Forsyth County 107,991 2nd E-Trade N/A CBRE

9 1110 Sanctuary Pky N Fulton/Forsyth County 104,012 4th McKesson CBRE JLL

10 1015 Windward Ridge Pky N Fulton/Forsyth County 96,900 3rd Equifax N/A Newmark Knight Frank

11 2550 Northwinds Pky N Fulton/Forsyth County 80,986 4th Veeam N/A Lincoln Property Company

12 756 W Peachtree St Midtown/Pershing Point 77,496 1st WeWork Cushman & Wake�eld JLL

13 10000 Avalon Blvd N Fulton/Forsyth County 75,378 2nd AXIS Capital Holdings CBRE Hines; Cousins Properties

14 3500 Lenox Rd NE Upper Buckhead 74,513 3rd AIG CBRE Highwoods Properties

15 1950 Spectrum Cir SE Cumberland/Galleria 68,023 2nd BlueLinx Corporation Transwestern CBRE

16 3100 Interstate N Cir Cumberland/Galleria 67,002 3rd Thyssenkrupp Cushman & Wake�eld Cushman & Wake�eld

17 303 Peachtree Center Ave NE Downtown Atlanta 61,812 4th Anthem Blue Cross Blue Shield Savills Studley Portman Holdings,LLC

18 100 Peachtree St NW Downtown Atlanta 58,233 2nd CallRail N/A JLL

19 5780 Powers Ferry Rd NW Cumberland/Galleria 57,078 2nd Superior Essex N/A JLL

20 2850 Premiere Pky Duluth/Suwanee/Buford 56,500 4th Kapsch CBRE The Simpson Organization

21 1055 Howell Mill Rd Northside Dr/Georgia Tech 56,120 2nd Regus JLL JLL

22 3225 Cumberland Blvd SE Cumberland/Galleria 55,526 3rd Infosys Scotland Wright Associates Colliers International

23 3625 Cumberland Blvd SE Cumberland/Galleria 54,000 3rd Carestream Dental N/A Hines

24 1600 Terrell Mill Rd SE Cumberland/Galleria 50,972 1st First Data Corporation N/A Avison Young

25 3414 Peachtree Rd NE* Upper Buckhead 50,248 2nd Baker Donelson Savills Studley Highwoods Properties

26 1150 Sanctuary Pky N Fulton/Forsyth County 50,000 4th N/A N/A JLL

27 1115 Howell Mill Rd NW Northside Dr/Georgia Tech 50,000 3rd Georgia Tech N/A Cushman & Wake�eld

28 1200 Abernathy Rd NE Central Perimeter 50,000 4th OneTrust N/A Cousins Properties

29 4004 Summit Blvd Central Perimeter 49,544 3rd Carr, Riggs, & Ingram Savills Studley CBRE

30 1745 Peachtree St NE Lower Buckhead 49,200 3rd FullStory Joel & Granot Real Estate N/A

31 1155 Peachtree St NE Midtown/Pershing Point 49,000 3rd Pandora Media CBRE Capital Real Estate Group

32 1125 Sanctuary Pky N Fulton/Forsyth County 47,308 3rd Thrivent Financial WM. Leonard & Co. JLL

33 980 Hammond Dr NE Central Perimeter 47,298 4th Angel Oak Colliers International Newmark Knight Frank

34 4800 North Point Pky* N Fulton/Forsyth County 45,574 3rd Siemens Corporation Cushman & Wake�eld JLL

35 980 Hammond Dr NE Central Perimeter 43,921 2nd Edible Arrangements Savills Studley JLL

36 3344 Peachtree Rd NE* Upper Buckhead 42,914 3rd Fifth Third Bank CBRE Cousins Properties

37 4800 North Point Pky* N Fulton/Forsyth County 42,366 2nd Siemens Corporation N/A JLL

38 3340 Peachtree Rd NE Upper Buckhead 41,698 2nd Terminus Cushman & Wake�eld Cushman & Wake�eld

39 675 Ponce de Leon Ave NE Midtown/Pershing Point 41,288 3rd Instacart Site Selection, Inc. Avison Young

40 3350 Peachtree Rd NE Upper Buckhead 41,101 4th Workday N/A Cousins Properties

Source: CoStar Property® * Renewal

18 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 19 Atlanta � Year-End 2018 Year-End 2018 – Atlanta Atlanta Office Market 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 8.0% $610

7.0% $560

6.0% $510 Do 5.0% $460 llars/SF 4.0% $410 3.0%

Cap Rate Percentage $360 2.0%

1.0% $310

0.0% $260 2015 4q 2016 4q 2017 4q

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. 2017 - Sept. 2018

Sales Volume Price/SF Bldg Size # RBA $ Volume Price/SF Cap Rate $1,800 $250

$1,600 < 50,000 SF 246 3,797,939 $607,533,904 $ 159.96 8.12% $200 $1,400

$1,200

Price/SF 50K-249K $150 58 6,512,086 $1,011,530,188 $ 155.33 6.93% $1,000 SF

$800 $100 $600 250K-499K 13 5,108,599 $1,224,900,458 $ 239.77 7.15%

Millions of Sales Volume Dollars SF $400 $50

$200

$0 $0 >500K SF 6 4,634,843 $984,441,991 $ 212.40 5.90% 2015 1q 2016 1q 2017 1q 2018 1q

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 Atlanta US $350 10.0%

9.0% $300 8.0%

$250 7.0%

6.0%

llars per SF $200 5.0% Do Cap Rate Percentage 4.0% $150 3.0%

$100 2.0% 2015 1q 2016 1q 2017 1q 2018 1q 2015 1q 2016 1q 2017 1q 2018 1q

Source: CoStar COMPS® Source: CoStar COMPS®

��

20 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 21 Atlanta � Year-End 2018 Year-End 2018 – Atlanta Atlanta Office Market Atlanta Office Market Buckhead Market Market Highlights – Class “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.800 16.0%

0.700 14.0% 0.600 12.0% 0.500 Vacant Percent 10.0% 0.400

0.300 8.0% Millions SF 0.200 6.0% 0.100 4.0% 0.000 2.0% (0.100)

(0.200) 0.0% 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q 2017 2q 2017 3q 2017 4q 2018 1q 2018 2q 2018 3q 2018 4q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $35.00 3.50 $34.50 3.00 $34.00 2.50 $33.50 2.00 $33.00

1.50 $32.50 Millions SF Dollars/SF/Year 1.00 $32.00

0.50 $31.50

0.00 $31.00 2017 1q 2017 3q 2018 1q 2018 3q 2017 1q 2017 3q 2018 1q 2018 3q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2018 4q 421 23,891,185 3,087,886 12.9% 59,307 0 0 1 49,200 $34.44 2018 3q 421 23,891,185 3,147,193 13.2% 100,747 0 0 1 49,200 $33.96 2018 2q 421 23,891,185 3,247,940 13.6% (101,611) 0 0 0 0 $33.04 2018 1q 420 23,776,941 3,032,085 12.8% 117,385 0 0 1 114,244 $32.72 2017 4q 420 23,776,941 3,149,470 13.2% 97,414 1 20,000 1 114,244 $32.19 2017 3q 419 23,756,941 3,226,884 13.6% (87,215) 0 0 2 134,244 $33.04 2017 2q 419 23,756,941 3,139,669 13.2% (7,257) 3 664,323 2 134,244 $32.96 2017 1q 415 23,019,854 2,395,325 10.4% 46,684 0 0 6 871,331 $32.47 2016 4q 416 23,091,794 2,513,949 10.9% (56,484) 1 48,588 5 757,087 $32.02 2016 3q 415 23,043,206 2,408,877 10.5% 134,106 1 52,811 6 805,675 $31.67 2016 2q 415 22,992,495 2,492,272 10.8% 20,376 0 0 5 733,601 $31.25 2016 1q 422 23,087,498 2,607,651 11.3% (28,885) 1 40,118 4 660,837 $30.86 2015 4q 421 23,047,380 2,538,648 11.0% 82,233 0 0 2 546,765 $30.46 2015 3q 421 23,047,380 2,620,881 11.4% 184,733 0 0 2 546,765 $29.83 2015 2q 424 23,078,148 2,836,382 12.3% 169,189 0 0 2 546,765 $28.70 2015 1q 424 23,078,148 3,005,571 13.0% 96,747 0 0 1 506,647 $28.14

Source: CoStar Property®

20 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 21 Atlanta – Year-End 2018 Year-End 2018 – Atlanta Atlanta Office Market Atlanta Office Market Central Perimeter Market Market Highlights – Class “A, B & C” Market Highlights – Class “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.800 14.5%

14.0% 0.600

13.5% Vacant Percent 0.400

13.0% 0.200

Millions SF 12.5%

0.000 12.0%

(0.200) 11.5%

(0.400) 11.0% 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q 2017 2q 2017 3q 2017 4q 2018 1q 2018 2q 2018 3q 2018 4q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $27.50 5.00

4.80 $27.00

4.60 $26.50

4.40 $26.00

4.20 Millions SF Dollars/SF/Year $25.50 4.00

$25.00 3.80

3.60 $24.50 2017 1q 2017 3q 2018 1q 2018 3q 2017 1q 2017 3q 2018 1q 2018 3q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2018 4q 692 35,004,055 4,708,606 13.5% 121,419 0 0 2 1,005,000 $27.13 2018 3q 692 35,004,055 4,830,025 13.8% (10,792) 0 0 2 1,005,000 $26.98 2018 2q 692 35,004,055 4,819,233 13.8% 233,629 1 225,000 1 670,000 $26.83 2018 1q 691 34,779,055 4,827,862 13.9% 142,394 1 355,250 2 895,000 $26.74 2017 4q 690 34,423,805 4,615,006 13.4% (92,225) 0 0 3 1,250,250 $26.05 2017 3q 689 34,403,089 4,502,065 13.1% (25,987) 0 0 4 1,270,966 $25.98 2017 2q 689 34,403,089 4,476,078 13.0% 22,845 1 15,402 4 1,270,966 $26.27 2017 1q 689 34,410,531 4,506,365 13.1% 3,643 0 0 5 1,286,368 $25.44 2016 4q 691 34,718,817 4,818,294 13.9% 101,233 1 584,763 4 616,368 $25.39 2016 3q 690 34,134,054 4,334,764 12.7% (178,977) 1 23,000 4 976,131 $25.06 2016 2q 689 34,111,054 4,132,787 12.1% (44,398) 0 0 4 978,415 $24.16 2016 1q 694 34,230,314 4,207,649 12.3% (29,976) 0 0 4 978,415 $23.61 2015 4q 701 34,349,984 4,297,343 12.5% 147,935 0 0 4 978,415 $22.85 2015 3q 702 34,367,368 4,462,662 13.0% 15,708 0 0 3 623,165 $22.58 2015 2q 703 34,371,909 4,482,911 13.0% 747,870 1 578,000 3 623,165 $22.23 2015 1q 707 33,883,804 4,742,676 14.0% (98,532) 0 0 3 1,178,165 $22.09

Source: CoStar Property®

22 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 23 Atlanta – Year-End 2018 Year-End 2018 – Atlanta Atlanta Office Market Atlanta Office Market Downtown Atlanta Market Market Highlights – Class “A, B & C” Market Highlights – Class “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.200 14.0%

0.150 12.0% 0.100

10.0% Vacant Percent 0.050

0.000 8.0%

Millions SF (0.050) 6.0%

(0.100) 4.0% (0.150) 2.0% (0.200)

(0.250) 0.0% 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q 2017 2q 2017 3q 2017 4q 2018 1q 2018 2q 2018 3q 2018 4q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $26.50 4.30 $26.00 4.20

4.10 $25.50

4.00 $25.00

3.90 $24.50 3.80 $24.00 3.70 Millions SF Dollars/SF/Year $23.50 3.60 $23.00 3.50 $22.50 3.40

3.30 $22.00 2017 1q 2017 3q 2018 1q 2018 3q 2017 1q 2017 3q 2018 1q 2018 3q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2018 4q 400 36,351,681 3,696,843 10.2% 99,167 0 0 1 65,000 $26.16 2018 3q 400 36,351,681 3,796,010 10.4% (1,116) 0 0 1 65,000 $25.78 2018 2q 400 36,351,681 3,794,894 10.4% 73,153 1 61,000 1 65,000 $25.52 2018 1q 399 36,290,681 3,807,047 10.5% 172,077 0 0 2 126,000 $25.35 2017 4q 399 36,290,681 3,979,124 11.0% 45,663 0 0 2 126,000 $24.96 2017 3q 399 36,290,681 4,024,787 11.1% 154,177 0 0 2 126,000 $24.68 2017 2q 399 36,290,681 4,178,964 11.5% (69,919) 0 0 2 126,000 $23.98 2017 1q 399 36,290,681 4,109,045 11.3% 96,809 0 0 1 61,000 $23.62 2016 4q 400 36,429,987 4,345,160 11.9% 160,016 0 0 1 61,000 $24.15 2016 3q 400 36,429,987 4,505,176 12.4% 39,737 0 0 1 61,000 $23.36 2016 2q 400 36,429,987 4,544,913 12.5% 30,998 0 0 1 61,000 $22.69 2016 1q 400 36,429,987 4,575,911 12.6% (156,612) 0 0 0 0 $22.36 2015 4q 400 36,429,987 4,419,299 12.1% 122,761 0 0 0 0 $21.74 2015 3q 400 36,429,987 4,542,060 12.5% 38,461 0 0 0 0 $21.69 2015 2q 400 36,429,987 4,580,521 12.6% (73,599) 0 0 0 0 $21.49 2015 1q 399 36,425,254 4,502,189 12.4% (218,753) 0 0 1 4,733 $21.19

Source: CoStar Property®

22 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 23 Atlanta – Year-End 2018 Year-End 2018 – Atlanta Atlanta Office Market Atlanta Office Market Gainesville Market Market Highlights – Class “A, B & C” Market Highlights – Class “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.070 12.0%

0.060 10.0% 0.050 Percent Vacant Percent 0.040 8.0%

0.030 6.0%

Millions SF 0.020

0.010 4.0%

0.000 2.0% (0.010)

(0.020) 0.0% 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q 2017 2q 2017 3q 2017 4q 2018 1q 2018 2q 2018 3q 2018 4q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $18.40 0.40 $18.20 0.35 $18.00

0.30 $17.80

0.25 $17.60

$17.40 0.20 $17.20 0.15 Millions SF Dollars/SF/Year $17.00 0.10 $16.80

0.05 $16.60

0.00 $16.40 2017 1q 2017 3q 2018 1q 2018 3q 2017 1q 2017 3q 2018 1q 2018 3q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2018 4q 572 4,605,369 282,488 6.1% 21,016 0 0 0 0 $18.14 2018 3q 572 4,605,369 303,504 6.6% 13,660 0 0 0 0 $18.22 2018 2q 572 4,605,369 317,164 6.9% 27,810 0 0 0 0 $17.54 2018 1q 572 4,605,369 344,974 7.5% (13,844) 0 0 0 0 $18.01 2017 4q 572 4,605,369 331,130 7.2% 1,575 0 0 0 0 $17.87 2017 3q 572 4,605,369 332,705 7.2% 30,186 1 21,553 0 0 $17.83 2017 2q 571 4,583,816 341,338 7.4% 26,526 0 0 1 21,553 $17.11 2017 1q 571 4,583,816 367,864 8.0% 20,733 0 0 1 21,553 $17.53 2016 4q 571 4,583,816 388,597 8.5% (3,698) 0 0 1 21,553 $17.65 2016 3q 570 4,559,816 360,899 7.9% 20,920 0 0 2 45,553 $17.92 2016 2q 570 4,559,816 381,819 8.4% 46,348 2 52,149 2 45,553 $17.40 2016 1q 569 4,510,667 379,018 8.4% 24,279 0 0 3 76,149 $17.86 2015 4q 569 4,510,667 403,297 8.9% 63,209 0 0 2 67,099 $17.84 2015 3q 568 4,503,230 459,069 10.2% (8,890) 1 8,500 2 50,536 $18.03 2015 2q 567 4,494,730 441,679 9.8% (414) 0 0 2 15,937 $17.32 2015 1q 567 4,494,730 441,265 9.8% (2,082) 0 0 2 15,937 $17.68

Source: CoStar Property®

24 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 25 Atlanta – Year-End 2018 Year-End 2018 – Atlanta Atlanta Office Market Atlanta Office Market Jefferson Market Market Highlights – Class “A, B & C” Market Highlights – Class “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.020 4.5%

0.015 4.0%

0.010 3.5% Percent Vacant Percent 0.005 3.0%

0.000 2.5%

Millions SF (0.005) 2.0%

(0.010) 1.5%

(0.015) 1.0%

(0.020) 0.5%

(0.025) 0.0% 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q 2017 2q 2017 3q 2017 4q 2018 1q 2018 2q 2018 3q 2018 4q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $6.00 0.04

0.04 $5.00

0.03 $4.00 0.03

$3.00 0.02

0.02 Millions SF Dollars/SF/Year $2.00

0.01 $1.00 0.01

0.00 $0.00 2017 1q 2017 3q 2018 1q 2018 3q 2017 1q 2017 3q 2018 1q 2018 3q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2018 4q 85 848,182 5,412 0.6% (500) 0 0 0 0 $5.50 2018 3q 85 848,182 4,912 0.6% 650 0 0 0 0 $5.62 2018 2q 85 848,182 5,562 0.7% 2,500 1 5,500 0 0 $5.28 2018 1q 84 842,682 2,562 0.3% 0 0 0 1 5,500 $2.93 2017 4q 84 842,682 2,562 0.3% 4,000 0 0 1 5,500 $4.67 2017 3q 84 842,682 6,562 0.8% 11,636 0 0 0 0 $4.83 2017 2q 84 842,682 18,198 2.2% 17,031 0 0 0 0 $5.10 2017 1q 84 842,682 35,229 4.2% (5,111) 0 0 0 0 $4.08 2016 4q 84 842,682 30,118 3.6% 947 0 0 0 0 $3.73 2016 3q 84 842,682 31,065 3.7% (20,437) 1 4,500 0 0 $3.72 2016 2q 83 838,182 6,128 0.7% 2,272 0 0 1 4,500 $3.10 2016 1q 83 838,182 8,400 1.0% (600) 0 0 1 4,500 $2.95 2015 4q 83 838,182 7,800 0.9% 1,200 0 0 1 4,500 $2.91 2015 3q 83 838,182 9,000 1.1% 6,500 0 0 0 0 $3.04 2015 2q 83 838,182 15,500 1.8% 4,700 0 0 0 0 $3.43 2015 1q 83 838,182 20,200 2.4% 8,255 0 0 0 0 $3.68

Source: CoStar Property®

24 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 25 Atlanta – Year-End 2018 Year-End 2018 – Atlanta Atlanta Office Market Atlanta Office Market Midtown Atlanta Market Market Highlights – Class “A, B & C” Market Highlights – Class “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.600 16.0%

0.500 14.0%

0.400 12.0% Percent Vacant Percent 0.300 10.0% 0.200 8.0%

Millions SF 0.100 6.0% 0.000 4.0% (0.100)

(0.200) 2.0%

(0.300) 0.0% 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q 2017 2q 2017 3q 2017 4q 2018 1q 2018 2q 2018 3q 2018 4q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $40.00 2.50 $35.00

2.00 $30.00

$25.00 1.50 $20.00

1.00 $15.00 Millions SF Dollars/SF/Year $10.00 0.50 $5.00

0.00 $0.00 2017 1q 2017 3q 2018 1q 2018 3q 2017 1q 2017 3q 2018 1q 2018 3q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2018 4q 441 26,575,392 2,218,165 8.3% 496,975 3 459,363 6 2,151,739 $36.24 2018 3q 438 26,116,029 2,255,777 8.6% (51,746) 0 0 7 2,174,435 $35.66 2018 2q 438 26,116,029 2,204,031 8.4% (179,738) 0 0 7 2,174,435 $35.00 2018 1q 439 26,119,529 2,027,793 7.8% 507,153 2 506,212 6 1,942,294 $33.96 2017 4q 437 25,613,317 2,028,734 7.9% 92,334 2 127,000 7 2,096,506 $32.22 2017 3q 435 25,486,317 1,994,068 7.8% 62,014 1 108,563 7 1,932,819 $30.56 2017 2q 434 25,377,754 1,947,519 7.7% 272,386 1 17,000 8 2,041,382 $28.84 2017 1q 433 25,360,754 2,202,905 8.7% 26,409 0 0 9 2,058,382 $27.71 2016 4q 434 25,367,654 2,236,214 8.8% 134,611 2 91,873 7 1,683,451 $27.17 2016 3q 433 25,327,687 2,330,858 9.2% 193,628 1 33,313 6 889,761 $27.28 2016 2q 433 25,300,374 2,497,173 9.9% 103,191 0 0 7 923,074 $27.40 2016 1q 434 25,303,950 2,603,940 10.3% 235,539 0 0 4 610,186 $26.74 2015 4q 434 25,303,950 2,839,479 11.2% 168,444 0 0 0 0 $26.07 2015 3q 434 25,303,950 3,007,923 11.9% 165,876 1 81,629 0 0 $26.29 2015 2q 433 25,222,321 3,092,170 12.3% 228,888 0 0 1 81,629 $24.86 2015 1q 436 25,285,841 3,384,578 13.4% 138,365 0 0 1 81,629 $24.63

Source: CoStar Property®

26 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 27 Atlanta – Year-End 2018 Year-End 2018 – Atlanta Atlanta Office Market Atlanta Office Market North Fulton Market Market Highlights – Class “A, B & C” Market Highlights – Class “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.500 14.0%

0.400 12.0% 0.300

10.0% Vacant Percent 0.200

0.100 8.0%

Millions SF 0.000 6.0%

(0.100) 4.0% (0.200) 2.0% (0.300)

(0.400) 0.0% 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q 2017 2q 2017 3q 2017 4q 2018 1q 2018 2q 2018 3q 2018 4q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $23.50 4.40

4.30 $23.00 4.20

4.10 $22.50 4.00

3.90 $22.00 3.80 Millions SF Dollars/SF/Year 3.70

3.60 $21.50

3.50

3.40 $21.00 2017 1q 2017 3q 2018 1q 2018 3q 2017 1q 2017 3q 2018 1q 2018 3q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2018 4q 1,916 37,690,408 4,304,151 11.4% 84,999 1 38,500 11 837,687 $23.17 2018 3q 1,915 37,651,908 4,350,650 11.6% (277,882) 1 7,000 10 806,370 $22.87 2018 2q 1,913 37,631,408 4,052,268 10.8% 62,323 2 63,941 9 369,300 $22.46 2018 1q 1,911 37,567,467 4,050,650 10.8% 132,276 8 271,575 10 423,241 $22.13 2017 4q 1,903 37,295,892 3,911,351 10.5% 166,625 0 0 16 679,316 $21.97 2017 3q 1,903 37,295,892 4,077,976 10.9% 180,445 3 104,460 16 679,316 $21.84 2017 2q 1,897 37,171,054 4,138,601 11.1% 128,730 4 280,740 21 799,136 $21.81 2017 1q 1,892 36,886,694 3,982,971 10.8% (96,077) 1 6,600 20 783,872 $21.90 2016 4q 1,891 36,880,094 3,880,294 10.5% 154,484 1 28,000 12 640,366 $21.80 2016 3q 1,889 36,842,799 3,997,483 10.9% (221,281) 0 0 9 421,850 $21.80 2016 2q 1,891 36,848,303 3,781,706 10.3% 5,428 2 24,000 7 408,430 $20.50 2016 1q 1,889 36,824,303 3,763,134 10.2% 116,136 2 24,356 5 287,142 $20.31 2015 4q 1,887 36,799,947 3,854,914 10.5% 76,887 1 52,000 4 48,356 $19.51 2015 3q 1,886 36,747,947 3,879,801 10.6% 431,717 0 0 5 100,356 $19.11 2015 2q 1,886 36,747,947 4,311,518 11.7% 209,194 1 8,000 2 69,689 $18.49 2015 1q 1,885 36,739,947 4,512,712 12.3% 366,758 2 14,670 2 60,000 $18.23

Source: CoStar Property®

26 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 27 Atlanta – Year-End 2018 Year-End 2018 – Atlanta Atlanta Office Market Atlanta Office Market Northeast Atlanta Market Market Highlights – Class “A, B & C” Market Highlights – Class “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.400 17.0%

0.300 16.5%

0.200 16.0% Percent Vacant Percent

0.100 15.5%

0.000 15.0% Millions SF (0.100) 14.5%

(0.200) 14.0%

(0.300) 13.5%

(0.400) 13.0% 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q 2017 2q 2017 3q 2017 4q 2018 1q 2018 2q 2018 3q 2018 4q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $18.40 5.70 $18.20 5.60 5.50 $18.00 5.40 $17.80 5.30 $17.60

5.20 $17.40 5.10 $17.20

Millions SF 5.00 Dollars/SF/Year $17.00 4.90 $16.80 4.80 4.70 $16.60 4.60 $16.40 2017 1q 2017 3q 2018 1q 2018 3q 2017 1q 2017 3q 2018 1q 2018 3q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2018 4q 2,896 36,302,582 5,452,128 15.0% 209,602 3 38,111 6 69,000 $18.03 2018 3q 2,893 36,264,471 5,623,619 15.5% (23,143) 1 27,944 9 107,111 $18.22 2018 2q 2,891 36,234,057 5,570,062 15.4% (70,338) 1 5,680 10 129,525 $17.85 2018 1q 2,889 36,225,907 5,491,574 15.2% (234,979) 3 28,002 11 122,675 $17.45 2017 4q 2,886 36,197,905 5,228,593 14.4% 311,085 1 40,000 10 102,566 $17.23 2017 3q 2,884 36,140,757 5,482,530 15.2% 71,088 1 2,400 9 141,244 $17.12 2017 2q 2,883 36,138,357 5,551,218 15.4% 12,617 0 0 8 132,774 $17.06 2017 1q 2,882 36,133,403 5,558,881 15.4% 83,929 4 107,944 7 96,182 $17.04 2016 4q 2,879 36,031,126 5,540,533 15.4% 303,129 3 46,040 10 186,978 $16.90 2016 3q 2,876 35,985,086 5,797,622 16.1% 11,995 0 0 12 230,618 $16.70 2016 2q 2,879 36,046,420 5,870,951 16.3% 183,055 0 0 10 205,664 $16.41 2016 1q 2,878 36,040,702 6,048,288 16.8% (285,101) 0 0 7 120,382 $16.45 2015 4q 2,878 36,040,702 5,763,187 16.0% 160,243 0 0 6 114,702 $16.44 2015 3q 2,878 36,040,702 5,923,430 16.4% (59,103) 2 9,706 4 74,758 $16.15 2015 2q 2,878 36,033,842 5,857,467 16.3% 148,463 1 6,214 3 21,706 $15.87 2015 1q 2,877 36,027,628 5,999,716 16.7% 99,234 3 38,800 3 15,920 $15.88

Source: CoStar Property®

28 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 29 Atlanta – Year-End 2018 Year-End 2018 – Atlanta Atlanta Office Market Atlanta Office Market Northlake Market Market Highlights – Class “A, B & C” Market Highlights – Class “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.250 10.5%

0.200 10.0%

0.150 Vacant Percent 9.5%

0.100 9.0%

Millions SF 0.050

8.5% 0.000

8.0% (0.050)

(0.100) 7.5% 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q 2017 2q 2017 3q 2017 4q 2018 1q 2018 2q 2018 3q 2018 4q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $21.00 2.90 $20.50 2.85 2.80 $20.00 2.75 $19.50 2.70 $19.00

2.65 $18.50 2.60 $18.00

Millions SF 2.55 Dollars/SF/Year $17.50 2.50 $17.00 2.45 2.40 $16.50 2.35 $16.00 2017 1q 2017 3q 2018 1q 2018 3q 2017 1q 2017 3q 2018 1q 2018 3q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2018 4q 2,341 30,573,348 2,566,871 8.4% 82,619 0 0 3 271,500 $20.35 2018 3q 2,341 30,573,348 2,649,490 8.7% 9,544 0 0 3 271,500 $19.88 2018 2q 2,341 30,573,348 2,659,034 8.7% 170,055 3 110,000 2 223,500 $19.49 2018 1q 2,338 30,463,348 2,719,089 8.9% 64,405 0 0 4 320,000 $19.32 2017 4q 2,338 30,463,348 2,783,494 9.1% 77,105 0 0 3 110,000 $19.41 2017 3q 2,338 30,463,348 2,860,599 9.4% 71,211 2 196,066 3 110,000 $18.85 2017 2q 2,336 30,267,282 2,735,744 9.0% (3,516) 1 7,500 5 306,066 $18.56 2017 1q 2,335 30,259,782 2,724,728 9.0% (46,407) 0 0 4 233,566 $17.60 2016 4q 2,335 30,259,782 2,678,321 8.9% (71,608) 0 0 3 188,566 $17.40 2016 3q 2,334 30,244,032 2,590,963 8.6% (14,610) 0 0 4 204,316 $17.18 2016 2q 2,333 30,231,247 2,563,568 8.5% 44,382 0 0 4 209,601 $17.24 2016 1q 2,334 30,244,372 2,621,075 8.7% 23,119 2 15,744 3 179,601 $17.26 2015 4q 2,332 30,228,628 2,628,450 8.7% 144,075 1 28,800 2 15,744 $17.44 2015 3q 2,334 30,240,328 2,784,225 9.2% 184,662 1 40,000 3 44,544 $17.22 2015 2q 2,334 30,226,280 2,954,839 9.8% 109,909 1 35,189 4 84,544 $17.23 2015 1q 2,333 30,191,091 3,029,559 10.0% 84,959 0 0 3 84,616 $16.92

Source: CoStar Property®

28 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 29 Atlanta – Year-End 2018 Year-End 2018 – Atlanta Atlanta Office Market Atlanta Office Market Northwest Atlanta Market Market Highlights – Class “A, B & C” Market Highlights – Class “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.700 16.0%

0.600 14.0% 0.500 12.0% 0.400 Vacant Percent 10.0% 0.300

0.200 8.0% Millions SF 0.100 6.0% 0.000 4.0% (0.100) 2.0% (0.200)

(0.300) 0.0% 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q 2017 2q 2017 3q 2017 4q 2018 1q 2018 2q 2018 3q 2018 4q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $24.00 6.30 $23.50 6.20

6.10 $23.00

6.00 $22.50

5.90 $22.00 5.80 $21.50 5.70 Millions SF Dollars/SF/Year $21.00 5.60 $20.50 5.50 $20.00 5.40

5.30 $19.50 2017 1q 2017 3q 2018 1q 2018 3q 2017 1q 2017 3q 2018 1q 2018 3q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2018 4q 3,268 51,685,768 6,099,482 11.8% 73,161 1 2,841 5 389,000 $23.23 2018 3q 3,267 51,682,927 6,169,802 11.9% 79,394 0 0 5 386,841 $23.49 2018 2q 3,267 51,682,927 6,249,196 12.1% 110,918 2 227,800 2 7,841 $22.70 2018 1q 3,265 51,455,127 6,132,314 11.9% 65,373 1 36,000 2 227,800 $22.50 2017 4q 3,264 51,419,127 6,161,687 12.0% 237,056 2 318,960 3 263,800 $21.77 2017 3q 3,261 51,097,223 6,079,783 11.9% 209,919 4 191,391 4 576,960 $21.55 2017 2q 3,251 50,658,780 5,851,259 11.6% 485,291 2 303,000 14 1,015,403 $21.44 2017 1q 3,249 50,270,580 5,948,350 11.8% (173,652) 1 9,933 16 1,401,403 $21.04 2016 4q 3,249 50,267,979 5,772,097 11.5% 45,452 3 131,500 12 1,340,103 $20.52 2016 3q 3,246 50,136,479 5,686,049 11.3% 312,234 2 180,000 11 1,420,702 $20.62 2016 2q 3,246 50,034,689 5,896,493 11.8% 217,788 0 0 13 1,596,202 $20.33 2016 1q 3,245 50,015,413 6,095,005 12.2% (103,278) 1 16,000 11 1,153,001 $20.14 2015 4q 3,245 50,014,995 5,991,309 12.0% 143,777 1 8,090 8 545,110 $19.49 2015 3q 3,246 50,047,731 6,167,822 12.3% 608,250 1 4,000 6 496,200 $19.38 2015 2q 3,243 50,037,369 6,765,710 13.5% 349,607 0 0 4 160,362 $18.80 2015 1q 3,245 50,062,641 7,140,589 14.3% 183,095 1 5,636 3 10,362 $18.40

Source: CoStar Property®

30 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 31 Atlanta – Year-End 2018 Year-End 2018 – Atlanta Atlanta Office Market Atlanta Office Market South Atlanta Market Market Highlights – Class “A, B & C” Market Highlights – Class “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.250 14.0%

0.200 12.0% 0.150

10.0% Vacant Percent 0.100

0.050 8.0%

Millions SF 0.000 6.0%

(0.050) 4.0% (0.100) 2.0% (0.150)

(0.200) 0.0% 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q 2017 2q 2017 3q 2017 4q 2018 1q 2018 2q 2018 3q 2018 4q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $18.50 2.80

2.70 $18.00

2.60 $17.50

2.50 $17.00

2.40 Millions SF Dollars/SF/Year $16.50 2.30

$16.00 2.20

2.10 $15.50 2017 1q 2017 3q 2018 1q 2018 3q 2017 1q 2017 3q 2018 1q 2018 3q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2018 4q 2,643 25,426,026 2,489,576 9.8% 133,955 2 60,000 1 51,272 $18.20 2018 3q 2,641 25,366,026 2,563,531 10.1% 72,128 1 40,000 3 111,272 $18.08 2018 2q 2,640 25,326,026 2,595,659 10.2% 9,404 0 0 4 151,272 $18.25 2018 1q 2,639 25,320,026 2,605,063 10.3% 20,792 4 39,282 3 100,000 $17.43 2017 4q 2,636 25,351,744 2,657,573 10.5% 65,428 1 30,195 6 109,282 $16.98 2017 3q 2,636 25,346,549 2,717,806 10.7% (139,202) 1 10,000 7 139,477 $16.67 2017 2q 2,635 25,336,549 2,568,604 10.1% 171,560 3 74,500 6 121,195 $16.62 2017 1q 2,631 25,254,773 2,658,388 10.5% 33,835 2 31,026 7 151,971 $16.44 2016 4q 2,629 25,223,747 2,661,197 10.6% 34,879 0 0 8 152,997 $16.23 2016 3q 2,629 25,223,747 2,696,076 10.7% (12,605) 0 0 5 92,802 $16.20 2016 2q 2,629 25,223,747 2,683,471 10.6% 76,855 0 0 2 15,526 $16.05 2016 1q 2,630 25,232,147 2,768,726 11.0% (43,222) 0 0 0 0 $15.97 2015 4q 2,630 25,232,147 2,725,504 10.8% 147,615 0 0 0 0 $16.12 2015 3q 2,630 25,232,147 2,873,119 11.4% 101,945 1 10,546 0 0 $16.02 2015 2q 2,630 25,209,457 2,952,374 11.7% 114,346 0 0 2 35,546 $16.35 2015 1q 2,629 25,203,157 3,060,420 12.1% 171,048 1 200,000 3 41,846 $16.18

Source: CoStar Property®

30 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 31 Atlanta – Year-End 2018 Atlanta Office Market West Atlanta Market Market Highlights – Class “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes

Delivered SF Absorption SF Vacancy 0.080 16.0%

0.060 14.0%

0.040 12.0% Percent Vacant Percent 0.020 10.0% 0.000 8.0%

Millions SF (0.020) 6.0% (0.040) 4.0% (0.060)

(0.080) 2.0%

(0.100) 0.0% 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q 2017 2q 2017 3q 2017 4q 2018 1q 2018 2q 2018 3q 2018 4q

Source: CoStar Property®

Vacant Space Quoted Rental Rates Historical Analysis, All Classes Historical Analysis, All Classes

Direct SF Sublet SF $19.50 1.20 $19.00

1.00 $18.50 $18.00 0.80 $17.50 $17.00 0.60 $16.50 $16.00 Millions SF 0.40 Dollars/SF/Year $15.50 $15.00 0.20 $14.50

0.00 $14.00 2017 1q 2017 3q 2018 1q 2018 3q 2017 1q 2017 3q 2018 1q 2018 3q

Source: CoStar Property® Source: CoStar Property®

Existing Inventory Vacancy Net Delivered Inventory UC Inventory Quoted Period # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates 2018 4q 923 6,598,569 797,653 12.1% 42,038 0 0 1 37,610 $16.69 2018 3q 923 6,598,569 839,691 12.7% 55,365 1 6,440 1 37,610 $16.71 2018 2q 922 6,592,129 888,616 13.5% 6,112 1 4,718 2 44,050 $15.86 2018 1q 921 6,587,411 890,010 13.5% (6,786) 1 8,275 2 11,158 $15.68 2017 4q 920 6,579,136 874,949 13.3% 30,708 1 5,180 3 19,433 $18.78 2017 3q 918 6,562,246 888,767 13.5% 28,193 0 0 3 25,165 $18.58 2017 2q 918 6,562,246 916,960 14.0% 40,877 0 0 3 25,165 $18.71 2017 1q 917 6,561,246 956,837 14.6% (62,817) 0 0 3 17,890 $18.61 2016 4q 917 6,561,246 894,020 13.6% 43,901 1 12,722 3 17,890 $18.48 2016 3q 916 6,548,524 925,199 14.1% (48,092) 0 0 2 13,722 $18.09 2016 2q 916 6,548,524 877,107 13.4% 12,203 0 0 1 12,722 $14.84 2016 1q 915 6,538,524 879,310 13.4% (86,092) 0 0 2 22,722 $14.77 2015 4q 915 6,538,524 793,218 12.1% 28,139 0 0 2 22,722 $14.37 2015 3q 915 6,538,524 821,357 12.6% 17,800 0 0 1 10,000 $14.18 2015 2q 915 6,538,524 839,157 12.8% 46,910 0 0 0 0 $14.12 2015 1q 916 6,547,676 895,219 13.7% 65,390 0 0 0 0 $14.27

Source: CoStar Property®