Office Market Survey | Birmingham

2015

OFFICE MARKET SURVEY | BIRMINGHAM “Graham & Company’s expertise has been of significant value to Cadence Bank, especially in our goal of acquiring locations for our new bank headquarters and operations center. We looked to Graham to provide options beyond the obvious and traditional possibilities. Their market knowledge and negotiation skills proved valuable in helping us achieve a successful outcome.”

Jennifer Bratton, Director of Corporate Facilities - CADENCE BANK

“Impact Family Counseling desired to purchase a larger office building to accommodate its rapid growth and to better serve its clients. The Graham & Company Office Group located an office building not listed on the market for sale in a highly visible area that fit our needs perfectly.”

– George Casey, Executive Director • IMPACT FAMILY COUNSELING

TABLE OF CONTENTS

Overall Market ...... 1

Downtown ...... 2

Midtown ...... 4

Highway 280 | I-459 ...... 6

Information deemed reliable, Southern | I-65 ...... 8 but not guaranteed . Vulcan | Oxmoor ...... 10 Copyright 2015 . Reproduction, in whole or part, Birmingham Area Map ...... 11 of this report is prohibited . Principals & Office Group . . . 12

Cover: Recent Graham Activities . . . . 15 Atrium between Buildings 1 & 2 of Samford University’s recently For Sale or Lease ...... 16 acquired 3 building campus located at 2100 Lakeshore Drive Office Services ...... 18 Ted Tucker Photography ©tedtucker .com Graham Team ...... 20 2015

[ 27.0 MILLION SF TOTAL ] SINGLE TENANT 8,996,124 SF Overall Market MULTI-TENANT 18,043,681 SF

BIRMINGHAM OFFICE MARKET OVERVIEW

In 2014, the Birmingham area office market contin- and improvements to traffic on Highway 280. Per- ued to show signs of an improved economy and of haps the most exciting turnaround for Birmingham’s a renewed interest to many of its submarkets. The submarkets was that of Vulcan / Oxmoor, which market’s multi-tenant occupancy was 86.01%, up showed great signs of recovery with increased multi- from the two previous years. Multi-tenant absorp- tenant occupancy and positive absorption of 50,187 tion was positive for the second year in a row at sf for the first time in two years. 192,721 sf. The recession of 2008-2011 seems to be in Class-A office sales were the story for 2014, with the rear view mirror for all area submarkets. 11 sales of 17 buildings totaling nearly $280 mil- Birmingham’s Central Business District contin- lion, most selling to out-of-state investors. The office ued to gain attention with new attractions in the market has not seen this type of investment activity area. Regions Field Baseball Park, Railroad Park, the since 2006. Some of the major office buildings sold Uptown district and several new restaurants, shops, included International Park, 3500 Blue Lake, Liber- and entertainment venues have brought new atten- ty Park, and Southbridge. All of these assets are of tion to the submarket and revitalized energy in the high quality and promise to provide strong investor CBD. With more office buildings slated for redevel- returns as they remain some of Birmingham’s best opment or renovation, and more activities to choose office buildings. from in the area, we expect 2015 to be a great year for the CBD. FUTURE: The Birmingham Office Market is poised In the suburbs, Midtown remained the strongest for even more improvement and activity in 2015. submarket with the highest multi-tenant occupancy With the CBD continuing to grow as a hub for not in Birmingham at 94.45%. The Southern / I-65 sub- only office users, but for consumers as well, we -ex market experienced a huge rebound of positive ab- pect to see increased momentum for the submarket. sorption at 126,674 sf, the highest of any submarket. The 280 / I-459 submarket will be one to watch with We predict 2015 to be a strong year for the 280 / I-459 the move of Trinity Hospital, as will Vulcan/Oxmoor submarket with the relocation of Trinity Medical after its turnaround this year.

BIRMINGHAM, ALABAMA OFFICE MARKET

GRAHAM & COMPANY | 2015 OFFICE MARKET SURVEY | BIRMINGHAM 1 [ 7.8 MILLION SF TOTAL ] Downtown Market SINGLE TENANT 2,845,198 SF MULTI-TENANT 4,964,376 SF

In 2014, the CBD continued to see positive effects from multiple downtown revitalization projects. The Regions Field Baseball Park and surrounding Parkside District have taken off, and Uptown Bir- mingham has been a huge success for visitors and residents alike. New restaurants and retail stores have continued to open around some of the CBD’s best office buildings, giving the area great appeal for tenants and investors. In 2014, multi-tenant rental rates remained steady at $20.05 psf, and multi-tenant occupancy decreased a fraction of a percent to 81.31%. The CBD JEMISON FLATS experienced negative absorption of 31,282 sf. Build- JF Hat, LLC an affiliate of LIV purchased this 89,144 sf office and residential building ing sales were relatively minimal; prominent sales of located at 1827 1st Avenue North. note included the Steiner Building and the Federal Reserve Building. Leases included multiple deals at Renasant Tower and Regions Harbert Plaza. Hand Arendall remained a strong presence in the submarket, renewing its lease in 2014 at Renasant Tower. With Downtown Birmingham continuing to grow, we fully expect the submarket to improve throughout 2015 and the immediate future.

RENASANT TOWER Several law firms, including Hand Arendall, LLC, leased new space in the recently renamed Renasant Tower.

2 GRAHAM & COMPANY | 2015 OFFICE MARKET SURVEY | BIRMINGHAM DOWNTOWN MARKET 2015

SIGNIFICANT LEASES

BUILDING SF TENANT COMMENTS RENASANT TOWER 28,543 HAND ARENDALL, LLC RENEWAL/EXPANSION RENASANT TOWER 19,879 BRESSLER, AMERY & ROSS, PC NEW LEASE SAKS BUILDING 18,000 COYOTE LOGISTICS, LLC NEW LEASE 2317 3RD AVENUE NORTH 14,000 ENROLLMENT ADVISORS, INC . NEW LEASE

RUMBERGER, KIRK & CALDWELL, RENASANT TOWER 12,000 NEW LEASE ATTORNEYS AT LAW

THE PARAMOUNT 10,000 ACTION RESOURCES/ARI LOGISTICS NEW LEASE

CAMPBELL, GUIN, WILLIAMS, FINANCIAL CENTER 7,200 NEW LEASE GUY & GIDIERE, LLC

1600–1606 2ND AVENUE NORTH 6,150 XTREME COMMUNITY EDUCATION SOCIETY NEW LEASE MARTIN BISCUIT BUILDING 5,930 HEARST COMMUNICATIONS, INC . NEW LEASE

SIGNIFICANT SALES

DATE BUILDING SF PRICE PSF BUYER 5/14 THE PARAMONT 15,000 $1,270,000 $84 .67 PARAMONT PARTNERS, LLC

2101 1ST AVENUE NORTH STEINER BUILDING, LLC AND 6/14 25,105 $1,825,000 $72 .69 STEINER BUILDING STEINER COMPANY, LLC

6/14 JEMISON FLATS 89,114 $6,300,000 $70 .70 JF HAT, LLC AN AFFILIATE OF LIV

7/14 FORMER DEPARTMENT OF REVENUE 19,500 $350,000 $17 .95 SWBP COLONNADE, LLC

BIRMINGHAM BRANCH 8/14 89,642 $1,350,000 $15 .06 FR BHAM, LLC FEDERAL RESERVE BANK OF ATLANTA

11/14 FORMER OMNI STUDIO 48,000 $660,000 $13 .75 BLUE TONGUE DEVELOPMENTS, LLC

GRAHAM & COMPANY | 2015 OFFICE MARKET SURVEY | BIRMINGHAM 3 [ 5.02 MILLION SF TOTAL ] Midtown Market SINGLE TENANT 901,053 SF MULTI-TENANT 4,122,743 SF

As the strongest submarket in the Birmingham area, Midtown continued last year’s turnaround with positive absorption and high occupancy. The 2014 average multi-tenant rental rate for Midtown was $21.62 psf and multi-tenant occupancy was at 94.45%, up 1.14% from last year. Absorption was positive once again at 46,942, proving the steady growth of the area. Multiple high dollar sales were the focus of 2014. Brookwood Village, Lakeshore Park Plaza and Southbridge made up some of the top sales. All of these trophy assets were purchased by out-of-state SOUTHERN PROGRESS CAMPUS investment groups. Independence Plaza also sold Samford University purchased three office buildings totaling 368,374 sf, the adjoining in 2014 to a local investment group, and the South- parking structure and 28 acres located directly ern Progress Campus sold to Samford University. next door to its existing campus. Leases at Brookwood Center helped contribute to the increase in occupancy. With high occupancy, quality office buildings, and its desirable location, Midtown is the most likely candidate for future office development.

LAKESHORE PARK PLAZA An out-of-state investor purchased this well located 196,871 sf Class-A office building in the Midtown submarket.

4 GRAHAM & COMPANY | 2015 OFFICE MARKET SURVEY | BIRMINGHAM MIDTOWN MARKET 2015

SIGNIFICANT LEASES

BUILDING SF TENANT COMMENTS 2100 LAKESHORE DRIVE 156,000 TIME, INC . NEW LEASE COLONIAL BROOKWOOD CENTER 47,870 SURGICAL CARE AFFILIATES, LLC NEW LEASE FIRST COMMERCIAL BANK 26,000 WALLACE JORDAN RENEWAL COLONIAL BROOKWOOD CENTER 16,462 PRICEWATERHOUSECOOPERS, LLP NEW LEASE 880 BUILDING 15,439 MOMENTUM TELECOM, INC . NEW LEASE LAKESHORE PARK PLAZA 10,337 TELVENT DTN, LLC RENEWAL SOUTHBRIDGE 9,740 MAULDIN & JENKINS EXPANSION/RENEWAL MONTCLAIR REHAB & PHYSICIAN’S CENTER 9,453 TRINITY MEDICAL CENTER NEW LEASE 2101 HIGHLAND AVENUE 7,500 NEW CAPITAL PARTNERS NEW LEASE

SOUTHBRIDGE 6,000 HERITAGE BANK OF THE SOUTH NEW LEASE

2931 2ND AVENUE SOUTH 5,192 CAYENNE CREATIVE NEW LEASE 1911 27TH AVENUE SOUTH 5,000 BIRMINGHAM EVENTS NEW LEASE

SIGNIFICANT SALES

DATE BUILDING SF PRICE PSF BUYER 2/14 600 UNIVERSITY PARK PLACE 122,654 $19,700,000 $160 .61 SAMFORD UNIVERSITY 3/14 2956 RHODES CIRCLE SOUTH 9,810 $750,000 $76 .45 PEEPLES HOLDINGS, LLC

BROOKWOOD VILLAGE $217 .65 4/14 170,000 $37,000,000 CYPRESS EQUITIES OFFICE BUILDING (ALLOCATED)

SHANNON WALTCHAK INVESTMENT 4/14 INDEPENDENCE PLAZA 106,555 $15,100,000 $141 .71 REAL ESTATE, LLC

6/14 2160 HIGHLAND AVENUE 20,000 $1,900,000 $95 .00 3529 REALTY GROUP 7/14 3529 7TH AVENUE SOUTH 12,752 $950,000 $74 .50 AIDS ALABAMA, INC .

GREENFIELD INVESTMENTS – 7/14 SOUTHBRIDGE 225,156 $24,200,000 $107 .48 SB PROPERTY OWNER, LLC

GREENFIELD INVESTMENTS – 9/14 LAKESHORE PARK PLAZA 196,871 $25,000,000 $126 .99 LAKESHORE PROPERTY OWNER, LLC

9/14 811 20TH STREET SOUTH 10,500 $930,000 $88 .57 MJR ENTERPRISES 9/14 PARKWAY PLACE 19,554 $3,060,000 156 .49 FAIRWAY PARKWAY PLACE, LLC

SOUTHERN PROGRESS CAMPUS 12/14 2100 LAKESHORE DRIVE 368,374 $57,740,000 $156 .74 SAMFORD UNIVERSITY (3 BUILDINGS)

GRAHAM & COMPANY | 2015 OFFICE MARKET SURVEY | BIRMINGHAM 5 [ 6.59 MILLION SF TOTAL ] Highway 280 | I-459 Market SINGLE TENANT 1,683,138 SF MULTI-TENANT 4,906,138 SF

The Highway 280/I-459 submarket continued last year’s trend of a slight increase in multi-tenant rates, averaging $20.63 psf in 2014. The submarket experienced a minimal amount of positive absorption of 200 sf, as well as a small fraction of a percent in decreased multi-tenant occupancy of 87.19%, down 0.04% from last year. 2014 saw the sale of several of the submarket’s major office buildings, including Grandview I, International Park, Urban Center and Blue Lake Center. Of these deals, three were to out-of-state investors. The 280 submarket houses some of the GRANDVIEW I best office parks in Alabama, and continued to see A local investor, KBC, LLC, purchased this 114,552 sf Class-A office building situated in the increased activity due in part to the relocation of heart of the Highway 280/I-459 corridor. Trinity Hospital, now Grandview Medical center, to the area, as well as the recent improvements made to the flow of 280 traffic. The investor interest garnered in this submarket has been indicative of the area’s potential, and it will be exciting to see how this submarket evolves in the next few years.

URBAN CENTER (1000, 1200, 1400 & 1500) An out-of-state investor purchased four Class-A office buildings totaling 537,414 sf located at Liberty Park.

6 GRAHAM & COMPANY | 2015 OFFICE MARKET SURVEY | BIRMINGHAM HIGHWAY 280 | I-459 MARKET 2015

SIGNIFICANT LEASES

BUILDING SF TENANT COMMENTS BRUNO CAPITAL BUILDING 30,000 SOURCE MEDICAL RENEWAL 1800 INTERNATIONAL PARK 25,412 TYCO INTEGRATED SECURITY, LLC NEW LEASE 22 INVERNESS CENTER 22,000 EPL, INC . RENEWAL RIVERHILLS BUSINESS PARK 19,107 APAC MID-SOUTH, INC . RENEWAL MEADOW BROOK 2700 17,530 JACK HENRY RENEWAL MEADOW BROOK 2700 14,877 REGUS NEW LEASE TWO PERIMETER PARK SOUTH 13,535 URS CORPORATION RENEWAL 33 INVERNESS CENTER 12,638 UHS RENEWAL ALOSTAR BANK BUILDING 12,403 AMERICAN BEHAVIORAL HEALTH NEW LEASE COLONIAL CENTER AT BLUE LAKE 12,166 PRINCIPAL FINANCIAL GROUP NEW LEASE 22 INVERNESS CENTER 12,000 APTALIS PHARMA, INC . RENEWAL GRANDVIEW II 11,811 GRESHAM, SMITH AND PARTNERS RENEWAL TWO PERIMETER PARK SOUTH 11,770 VALMONT INDUSTRIES, INC . RENEWAL URBAN CENTER 1400 11,134 FERGUSON, FROST & DODSON, LLP NEW LEASE URBAN CENTER 1500 10,004 AMERIPRISE FINANCIAL SERVICES, INC . RENEWAL MEADOW BROOK 100 9,150 SAIN ENGINEERING ASSOCIATES, INC . RENEWAL 210 INVERNESS PARKWAY 8,715 DIAMOND FORTRESS TECHNOLOGIES, INC . NEW LEASE MEADOW BROOK 1200 8,292 CONTINUUMRX SERVICES, INC . NEW LEASE URBAN CENTER 1500 8,000 ATHENAHEALTH, INC . RENEWAL GRANDVIEW I 7,986 MAGIC CITY TITLE RENEWAL RIVERHILLS BUSINESS PARK 7,850 BIRMINGHAM INTERNATIONAL FOREST PRODUCTS, LLC RENEWAL URBAN CENTER 1400 7,255 RELIANCE FINANCIAL GROUP NEW LEASE

SIGNIFICANT SALES

DATE BUILDING SF PRICE PSF BUYER 4/14 2545 ROCKY RIDGE LANE 114,035 $32,250,000 $282 .81 ARCP OFC BIRMINGHAM AL, LLC 5/14 2206 CAHABA VALLEY DRIVE 5,000 $750,000 $150 .00 TRUSSVILLE SURGICAL, LLC

3535 GRANDVIEW PARKWAY 6/14 114,552 $9,714,000 $84 .81 KBC, LLC GRANDVIEW I

11/14 1800 & 1900 INTERNATIONAL PARK 211,269 $28,904,000 $136 .81 POINT ONE HOLDINGS, LLC 11/14 BLUE LAKE CENTER 166,779 $22,094,000 $132 .47 POINT ONE HOLDINGS, LLC 11/14 URBAN CENTER (4 BUILDINGS) 537,414 $66,300,000 $123 .37 PZ UC BUILDING OWNER, LLC 12/14 ALOSTAR BANK BUILDING 66,614 $8,000,000 $120 .09 TRINITY MEDICAL CENTER

GRAHAM & COMPANY | 2015 OFFICE MARKET SURVEY | BIRMINGHAM 7 [ 4.8 MILLION SF TOTAL ] Southern | I-65 Market SINGLE TENANT 2,691,514 SF MULTI-TENANT 2,164,454 SF

The Southern submarket saw its best results in the last 5 years, also the best of any submarket in Birmingham in 2014. Multi-tenant occupancy increased by 5.85%, placing it at 90.24%, and multi- tenant rates increased to $17.52 psf up 1.45% from last year. The largest increase to the submarket, however, was the major boost in positive absorption of 126,674 sf, by far the highest of any submarket. The growth experienced in the Southern/I-65 submarket was due in large part to several new leases. The largest lease was to Atherotech, which leased the entire Woods Point II Building (over 48,000 sf). HILLSIDE MEDICAL PLAZA Notable sales included the 2-parcel sale along High- Hillside Partners, LLC purchased this 16,101 sf way 31, an area sold for commercial redevelopment, office building located in Alabaster near Shelby Baptist Medical Center. the sale of the Southlake Outpatient Surgical Center and the sale of 165-181 Cahaba Valley Parkway. We predict that these sales and leases will generate fur- ther interest in the submarket and will greatly boost the economic impact of the area.

WOODS POINT II Atherotech, Inc. leased this entire 48,284 sf, Class-A office building located in the Southern/I-65 submarket.

8 GRAHAM & COMPANY | 2015 OFFICE MARKET SURVEY | BIRMINGHAM SOUTHERN/I-65 MARKET 2015

SIGNIFICANT LEASES

BUILDING SF TENANT COMMENTS WOODS POINT II 48,284 ATHEROTECH, INC . NEW LEASE VALLEYDALE VILLAGE 30,000 BRASS BEAR, LLC NEW LEASE RIVERCHASE CENTER 2200 19,192 PROCTORU, INC . NEW LEASE CONCOURSE 100 16,269 MCLEOD SOFTWARE NEW LEASE RIVERCHASE CENTER 2100 14,607 WIDEORBIT, INC . NEW LEASE 501 RIVERCHASE PARKWAY 9,000 HOMETOWN LENDERS, LLC NEW LEASE 101 RIVERCHASE PARKWAY 6,900 HOMETOWN LENDERS, LLC NEW LEASE CHASE CORPORATE CENTER 5,914 OPTIMUM OUTCOMES, INC . NEW LEASE VESTAVIA CENTRE 5,737 RAM, INC . RENEWAL RIVERCHASE CENTER 2200 5,615 THE VALENCIA GROUP, INC . RENEWAL CENTURY PARK SOUTH 5,428 THE VALLETTA GROUP NEW LEASE FAMILY MEDICINE SOUTH 5,314 ANDREWS SPORTS MEDICINE NEW LEASE 3168 PIPE LINE ROAD 5,264 TWIST TECHNOLOGY, LLC NEW LEASE 2131 DATA OFFICE DRIVE 5,057 AMERICAN FINANCIAL MANAGEMENT NEW LEASE

SIGNIFICANT SALES DATE BUILDING SF PRICE PSF BUYER

MCCONNELL WHITE & TERRY REALTY 3/14 2120 DATA DRIVE (RIVERCHASE) 10,602 $850,000 $80 .17 AND INSURANCE CO ., INC .

4511 SOUTHLAKE PARKWAY – CHAO-WEI DAVID WANG AND 7/14 12,595 2,850,000 $226 .28 OUTPATIENT SURGICAL CENTER YING-YING LISA LIN

8/14 3180 CAHABA HEIGHTS ROAD 3,223 $456,000 $141 .48 GOLDEN RULE LAND, LLC

UNIT 246 BEAUMONT VILLAGE 8/14 3,500 $581,995 $166 .28 WORKSITE BENEFITS SERVICES, INC . CONDOMINIUM

9/14 HILLSIDE MEDICAL PLAZA 16,101 $1,627,500 $101 .08 HILLSIDE PARTNERS, LLC

MCCONNELL WHITE & TERRY REALTY 9/14 101 RIVERCHASE PARKWAY EAST 6,900 $1,100,000 $159 .42 AND INSURANCE CO ., INC .

10/14 5395 EMERY WAY 9,210 $1,250,000 $135 .72 DENNIS O’BRIEN 10/14 2960 COLUMBIANA ROAD 9,200 $1,050,000 $114 .13 LEJ JR ., LLC 10/14 165-181 CAHABA VALLEY PARKWAY 23,908 $2,425,000 $101 .43 165 CAHABA, LLC

GRAHAM & COMPANY | 2015 OFFICE MARKET SURVEY | BIRMINGHAM 9 [ 2.76 MILLION SF TOTAL ] Vulcan | Oxmoor Market SINGLE TENANT 875,221 SF MULTI-TENANT 1,885,970 SF

After two years of negative absorption, the Vulcan/ The Vulcan/Oxmoor submarket is Birmingham’s Oxmoor submarket gained positive absorption at smallest and its inventory is made up of aging office 50,187 sf. The area also experienced a gain in multi- buildings, however its location near the I-65 corridor tenant occupancy of 0.18%, placing it at 72.04%. is very appealing. Another benefit to the area is the The multi-tenant lease rate averaged $15.62, down City of Homewood’s interest in improving the area 0.08%. While these numbers were down from what to attract more businesses and office users. Notable was experienced in 2010-2012, the increase from last activity in the submarket included the sale and lease year, coupled with the positive absorption, should be of the Media Services Building. T-Mobile leased encouraging for the submarket. 66,500 sf in this location.

SIGNIFICANT LEASES

BUILDING SF TENANT COMMENTS EVONIK 750 LAKESHORE 82,200 BBVA COMPASS EXTENSION MEDIA SERVICES BUILDING 66,500 T-MOBILE NEW LEASE BEACON RIDGE TOWER 19,218 COCA COLA RENEWAL/EXPANSION LAKESHORE CROSSINGS 8,040 DEX IMAGING OF ALABAMA, LLC NEW LEASE

SIGNIFICANT SALES

DATE BUILDING SF PRICE PSF BUYER 7/14 820 TOM MARTIN DRIVE 66,500 $4,500,000 $67 .67 ET BIRMINGHAM, LLC 10/14 490 INDUSTRIAL DRIVE 120,000 $3,100,000 $25 .83 WESTBURY 3, LLC

GRAND TWIN TOWERS MOUNT KELLETT 12/14 90,528 $6,800,000 $75 .11 (2 BUILDINGS) CAPITAL MANAGEMENT

820 TOM MARTIN DRIVE ET Birmingham, LLC purchased this 66,500 sf office building located in the Vulcan/Oxmoor submarket.

10 GRAHAM & COMPANY | 2015 OFFICE MARKET SURVEY | BIRMINGHAM GRAHAM & COMPANY | 2015 OFFICE MARKET SURVEY | BIRMINGHAM 11 Principals Office Group

DAN LOVELL, SIOR, LEED AP DIRECTOR, OFFICE GROUP danl@grahamcompany com.

JOINED GRAHAM & COMPANY: 1991

AFFILIATIONS/HONORS: • SIOR Office Specialist designation since 1997 • LEED AP, certified 2008 • BBVA Compass Bank Board of Directors – Current • 2003 President of NAIOP – AL Chapter • Birmingham Business Journal “Top 40 Under 40” 2003 • Birmingham Association of Realtors Commercial Real Estate Club of Excellence 2008 Top Producer – Investment Division • Birmingham Metropolitan Development Board (Board Member, 2003) MIKE GRAHAM, CPM, SIOR CLIENTS INCLUDE: STEVE GRAHAM, MAI, CRE • Carr Allison • Southlake Orthopaedics • BBVA Compass • Hand Arendall • Friedman Dazzio • Grayson & Associates Steve Graham, Chairman of Graham & Company, co- • Dixon Hughes Goodman • Cadence Bank • Atherotech ordinates the company’s appraisal/consulting and asset • Cisco Systems • Amsher Collection Services • CW Capital management services . He is widely respected for his skills in commercial real estate appraisal and consulting . He is

a member of the Appraisal Institute (MAI) and holds the MICHAEL A. LAWLEY, CCIM Counselor of Real Estate (CRE) designation . DIRECTOR, CORPORATE SERVICES Steve is a graduate of the University of the South and mikel@grahamcompany com. earned a law degree from Samford University’s Cumber- JOINED GRAHAM & COMPANY: 2010 land School of Law . AFFILIATIONS/HONORS: Mike Graham, President of Graham & Company, heads the • CCIM designation (Certified company’s commercial real estate division, which includes Commercial Investment Member) sales, leasing, and development activities . Active in the de- • Birmingham Association of velopment community, Mike earned the prestigious SIOR Realtors Commercial Real designation from the Society of Industrial & Office Realtors; Estate Club of Excellence he has served as National Chairman of several committees . 2010 Top Producer – Investment Division He is also a former president of the Alabama chapters of 2011 Top Producer – Investment Division SIOR, Institute of Real Estate Management (IREM), and • National Association of Realtors Affiliate Member

NAIOP Commercial Real Estate Development Association . CLIENTS INCLUDE: Mike is a graduate of the University of the South and • BBVA Compass Bank • Cadence Bank • Wells Fargo holds a Masters in Business Administration (MBA) from • BellSouth/AT&T • Regions Bank • South First Bank Emory University . • 1st Financial Bank • Noble Bank & Trust • First United Security Bank

12 GRAHAM & COMPANY | 2015 OFFICE MARKET SURVEY | BIRMINGHAM Office Group

SAM CARROLL, SIOR WALTER BROWN, SIOR VICE PRESIDENT, OFFICE GROUP VICE PRESIDENT, OFFICE GROUP samc@grahamcompany com. walterb@grahamcompany com.

JOINED GRAHAM & COMPANY: 2002 JOINED GRAHAM & COMPANY: 1999

AFFILIATIONS/HONORS: AFFILIATIONS/HONORS: • SIOR Office Specialist • Birmingham Association of designation since 2008 Realtors Commercial Real • Birmingham Business Journal Estate Club of Excellence “Top 40 Under 40” 2008 2007 Vulcan Award 2008 Top Producer – Sales & Leasing CLIENTS INCLUDE: • SIOR Office Specialist designation since 2008 • Charter Communications • CRST Logistics • PNC Bank • Member NAIOP – AL Chapter, • ADT • IKON Office Solutions • Tyco Integrated Security 2008 Office Broker of the Year • Hollis & Wright, PC • Doozer Software • CenturyLink • IBML • Auto Owners Insurance • APAC Mid-South • Birmingham Business Journal “Deals of the Year” 2008 for Lakeshore Crossings • Earned Certificate for Regional & Urban Planning

JERRY L. GRANT, CCIM • Homewood Rotary Club Board of Directors VICE PRESIDENT, OFFICE GROUP • Homewood Chamber of Commerce Board Member jerryg@grahamcompany com. • Community Service Award – Graham & Company JOINED GRAHAM & COMPANY: 2015 CLIENTS INCLUDE: AFFILIATIONS/HONORS: • Warren Averett • DRA Advisors, LLC • JP Morgan Chase • CCIM designation (Certified • Ferguson, Frost & Dodson, LLP • Baptist Health Centers Commercial Investment Member) • Miller, Christie & Kinney, P C. . • Avadian Credit Union • Birmingham Commercial Realtors • Oakstone Publishing • Hatch Mott MacDonald Council (BCRC), Board Member and Secretary • Member NAIOP – AL Chapter, 2009 Office Broker of the Year, Past President and Current National Board Member

CLIENTS INCLUDE: • Nexity Bank/Alostar Bank • Lord Baltimore Properties • Greenfield Partners • Noland Health • Legacy Federal • Cousins Properties, Inc . • Wells Real Estate Funds • Samford University • Lubert Adler • Harvard Behringer

CHRISTIE NEELY JANIE Mc DANIEL MATT GILCHRIST REAL ESTATE MARKETING OFFICE GROUP ASSISTANT ASSISTANT mattg@grahamcompany com.

JOINED GRAHAM & COMPANY: 2014

AFFILIATIONS/HONORS: • Member NAIOP – AL Chapter • Exceptional Foundation, Junior Board Member • Phoenix Club Member • Fellows Program Member

CLIENTS INCLUDE: JULIE HUBBARD • Bell Outdoors • FoodSource Lures MARKETING MEDIA • Plexius Info • Shapiro & Ingle COORDINATOR

GRAHAM & COMPANY | 2015 OFFICE MARKET SURVEY | BIRMINGHAM 13 Graham Commercial Properties

STACEY R. WADSWORTH BETH GRESHAM DIRECTOR OF PROPERTY MANAGER PROPERTY MANAGEMENT beth gresham@gcprei. com. stacey wadsworth@gcprei. com. JOINED GRAHAM & COMPANY: 2011 JOINED GRAHAM & COMPANY: 2011 AFFILIATIONS/HONORS: AFFILIATIONS/HONORS: • Member of Building Owners • Member of Building Owners and Managers Association and Managers Association International (BOMA) International (BOMA) • Licensed Real Estate Agent – AL • Member International Council of Shopping Centers (ICSC) PROPERTIES MANAGED: • Meadow Brook North Buildings: 100, 300, 500 & 1200 • Member Commercial Real Estate Women (CREW) • Federal Protective Service Contract Suitability Adjudication Program – Security Clearance designation KATHY K. SMITH CONCENTRATION: PROPERTY MANAGER Supervising operations of a growing portfolio of over kathy .smith@gcprei com. 11 million sf in Birmingham, Montgomery, Gulf Coast JOINED GRAHAM & COMPANY: 2013 and Jacksonville, FL PROPERTIES MANAGED: • Colonial Office Park (9 Buildings) ELEANOR CAVER PROPERTY MANAGER eleanor caver@gcprei. com.

JOINED GRAHAM & COMPANY: 2002

AFFILIATIONS/HONORS: SAM WARBINGTON, CSM • Member of Building Owners PROPERTY MANAGER and Managers Association sam warbington@gcprei. com. International (BOMA) JOINED GRAHAM & COMPANY: 2014

PROPERTIES MANAGED: AFFILIATIONS/HONORS: • 110 Building • CWD Office Park, LLC • Member of Building Owners • First United Methodist Church – Alabaster and Managers Association • Grambler, LLC • Internal Revenue Service International (BOMA) • Lyon Lane • Spartan Partners, LLC • Yielding Estate • Member of International Council of Shopping Centers (ICSC) (CSM) designation since 1984 HENRY V. GRAHAM II • Licensed Real Estate Agent – AL PROPERTY MANAGER

henry graham@gcprei. com. PROPERTIES MANAGED: • Airport Highway Park • BN Park JOINED GRAHAM & COMPANY: 2013 • Gazelle (Phases I-III) • Mercedes-Benz Vance LLC AFFILIATIONS/HONORS: • Vanderbilt Distribution Center • Licensed Real Estate Agent – AL • Member NAIOP – AL Chapter

PROPERTIES MANAGED: • Shelby Commerce Park • Grandview II • Hillside Medical Center • Medplex I • Medstone Professional Building

14 GRAHAM & COMPANY | 2015 OFFICE MARKET SURVEY | BIRMINGHAM Recent Graham Activities

LEASED LEASED

GRANDVIEW II MEADOWBROOK 1200

10,558 SF OFFICE SPACE 38,387 SF OFFICE SPACE Graham represented the landlord in the lease of Graham represented the landlord in the lease 10,558 sf to Wettermark & Keith, LLC . renewal of 38,387 sf to FIS . Agents: Sam Carroll, sior & Matt Gilchrist Agents: Sam Carroll, sior & Matt Gilchrist

SOLD LEASED

5395 EMERY WAY 3570 GRANDVIEW PARKWAY

9,210 SF OFFICE BUILDING 12,039 SF OFFICE SPACE Graham represented the seller, Hunter Trace, LLC, Graham represented the landlord in the lease in its disposition of this 9,210 sf office building renewal of 12,039 sf to The Strayer University located in Hoover . Corporation . Agent: Sam Carroll, sior Agent: Walter Brown, sior

SOLD SOLD

30 ACRE DEVELOPMENT SITE HIGHWAY 119 1000 BRUCE ETHERIDGE PARKWAY

30 ACRE DEVELOPMENT SITE 53,122 SF OFFICE BUILDING Graham represented the seller,Alabama Power Graham represented the seller, CenturyLink, in its Company, in its disposition of 30 acres of land disposition of this 53,122 sf office building located in located on Cahaba Valley Road . The property was Pell City, AL . The building was purchased by the City purchased by Keith Development, LLC . of Pell City for it’s new location . Agent: Mike Lawley, ccim Agent: Sam Carroll, sior

GRAHAM & COMPANY | 2015 OFFICE MARKET SURVEY | BIRMINGHAM 15 For Sale or Lease

MEADOW BROOK NORTH (4 BUILDINGS) CLASS-A SUBURBAN OFFICE PARK, HOOVER, AL AVAILABLE: 193,275 SF • Excellent location, access and amenities • Largest contiguous space available: 101,527 sf Contacts:

Sam Carroll, SIOR [email protected] Matt Gilchrist MEADOW BROOK NORTH [email protected]

THE CHAMBERS BUILDING 100 CENTERVIEW DRIVE, VESTAVIA HILLS, AL

AVAILABLE: 34,313 SF Contacts: • Easy access to Highway 31, I-65 and I-459 Walter Brown, SIOR • Convenient to shopping, restaurants, bank [email protected] hotels & residential developments • Located within Highpoint Office Center Matt Gilchrist [email protected] • Varied & stable tenant mix Dan Lovell, SIOR, LEED AP THE CHAMBERS BUILDING [email protected]

750 LAKESHORE PARKWAY BIRMINGHAM, AL AVAILABLE: 20,000 – 135,000 SF • On-site auditorium • Free parking for up to 740 employees and Contacts: visitors Dan Lovell, SIOR, LEED AP • Walking path adjacent to building [email protected]

John Coleman, SIOR 750 LAKESHORE PARKWAY [email protected]

FREESTANDING RETAIL/OFFICE 1911 CRESTWOOD BOULEVARD, IRONDALE, AL AVAILABLE: 45,560 SF • (2) truck high doors • High visibility at I-20 interchange Contacts: • Land area 1 .24 acres Sam Carroll, SIOR [email protected] Matt Gilchrist FREESTANDING RETAIL/OFFICE [email protected]

LAKE CYRUS SUBDIVISION BANK OWNED PROPERTY HOOVER, AL AVAILABLE: 28 Partially developed lots 25.4 Acres undeveloped land • Swim & racquet club by membership • 1/4 mile walking/pedestrian park Contact: • Lakes LAKE CYRUS SUBDIVISION Mike Lawley, CCIM [email protected]

16 GRAHAM & COMPANY | 2015 OFFICE MARKET SURVEY | BIRMINGHAM For Sale or Lease

500 BEACON PARKWAY WEST BIRMINGHAM, AL AVAILABLE: 29,461 SF • Centrally located with easy access to I-65 • Great views of surrounding area Contacts: • Perfect for owner/occupant Dan Lovell, SIOR, LEED AP • 4 .1 per 1,000 parking ratio [email protected] Matt Gilchrist 500 BEACON PARKWAY WEST [email protected]

INTERSTATE PARK (9 BUILDINGS) I-85 & PERRY HILL ROAD, MONTGOMERY, AL AVAILABLE: 87,186 SF • Easy access to major transportation arteries • Class-A office within 270,000 sf office park

Contact:

Walter Brown, SIOR INTERSTATE PARK [email protected]

400 EMERY DRIVE TRACE CROSSINGS, HOOVER, AL AVAILABLE: 10,617 SF • Leasable area: 2,205 up to 10,617 sf • Site size: 1 .07 acres Contact: • 48 parking spaces (4 covered) Walter Brown, SIOR [email protected]

400 EMERY DRIVE Sam Carroll, SIOR [email protected]

MEDPLEX I 4515 SOUTHLAKE PARKWAY, HOOVER, AL AVAILABLE: 26,915 SF • Largest contiguous space available: 20,000 sf • Excellent access from I-65 at Valleydale Road • Ample parking

Contact:

Walter Brown, SIOR MEDPLEX I [email protected]

GRANDVIEW II 3595 GRANDVIEW PARKWAY, BIRMINGHAM, AL AVAILABLE: 25,197 SF • Easy access to major transportation arteries; fitness room; lake views Contact: • Largest contiguous space available: 10,424 sf Sam Carroll, SIOR [email protected]

GRANDVIEW II Matt Gilchrist [email protected]

GRAHAM & COMPANY | 2015 OFFICE MARKET SURVEY | BIRMINGHAM 17 Office Services

Over the past twenty-five plus years, Graham & Company has consistently achieved increasing sales volumes and typically participates in many of the Birmingham area’s largest real estate transactions. The company’s strong performance is due in no small part to the ongoing presence of a professional staff of dedicated and talented real estate specialists. Long recognized among Alabama’s leading industrial real estate firms, Graham & Company also enjoys a growing reputation in the leasing and management of office space. In response to client demand, Graham MEDPLEX I has systematically extended both its range of services and geographic reach, serving clients throughout Alabama, Florida, and several surrounding states. Graham agents and staff are encouraged to pursue prestigious professional designations such as SIOR, CCIM, CPM, and RPA to enhance service by keeping abreast of industry trends. Along with other affiliations, these memberships also provide a nationwide network of key industry contacts. To meet the needs of office users and investors, Graham & Company offers a full range of services, including brokerage, tenant representation and third- 110 OFFICE PARK DRIVE party management through sister company GCP (Graham Commercial Properties). The company also represents clients in the acquisition or disposition of investment-grade office properties. In aggressively expanding its office component, Graham has developed strong relationships with local, regional and national clients – among them such notable names as LNR Partners, ADT, Cisco Systems, Coca-Cola, State Farm Insurance, Alabama Telco, and SouthernLINC. Combining expert service with an unwavering com- mitment to integrity and fairness, Graham’s professional staff enjoys the respect of Birmingham’s industrial and GRANDVIEW II financial communities, as well as that of business recruit- ment allies like the Alabama Department of Commerce and the Birmingham Business Alliance.

INVESTMENT/DEVELOPMENT SERVICES Rounding out the full range of services available to clients of Graham & Company are the investment services and development services divisions. While Graham’s brokerage division works with end-users of industrial, office, and other commercial properties, investment services are geared toward clients who view real estate as an income-producing commod- MEADOW BROOK CORPORATE PARK ity. Maximizing the profitability of such investments

18 GRAHAM & COMPANY | 2015 OFFICE MARKET SURVEY | BIRMINGHAM Office Services

requires not just an intimate working knowledge for speculative buildings and establishing on-going of the risks and rewards of investing in real estate, property management services. but also a familiarity with the markets and require- In accordance with Graham & Company’s mis- ments of our customers – a combination that places sion to create value for its clients, the investment Graham & Company in a unique position to provide and development divisions strive to identify or cre- the fullest possible range of expertise. ate opportunities and complete transactions of mu- Ultimately, the income-producing capacity of any tual benefit to owners and tenants. property is proportional to the ability to attract and retain tenants. Graham & Company is experienced CORPORATE SERVICES in the disposition of properties under tax-deferred Graham & Company provides a full array of exchanges. Our agents have strategic relationships corporate real estate services. Our Company will with attorneys and escrow agents necessary to com- form strategic partnerships with select partners and ply with exchange requirements. pursue limited corporate relationships where we Should a client or investment group have a spe- add value and have a mutually beneficial economic cific property need or a desire to build-to-suit, impact with our partners. Graham & Company will Graham & Company’s development services group be your single point of contact for all your corporate has the experience and expertise to navigate the real estate requirements. complicated building process to fruition. Develop- Graham & Company’s experienced team pro- ment services entail procuring a suitable site with vides comprehensive commercial real estate services appropriate financing, assembling a team of archi- including investment, development, appraisals, tects, engineers and contractors, monitoring and sales, property management and leasing of office, managing the building process, negotiating leases industrial, medical and retail spaces.

GRAHAM & COMPANY • CORPORATE SERVICES

• Disposition | Acquisition • Build-to-Suit | Development • Sale Leasebacks • Lease Transaction Services • Lease Administration • Property Management • Appraisal Services • Construction | Project Management

Graham & Company Locations Selected Graham & Company Transaction History

GRAHAM & COMPANY | 2015 OFFICE MARKET SURVEY | BIRMINGHAM 19 Graham Team GRAHAM & COMPANY

Jack Brown, SIOR Walter Brown, SIOR Sam Carroll, SIOR John Coleman, SIOR Sonny Culp, SIOR Ogden S. Deaton, SIOR Courtney DeShazo Robin Domit

Matt Gilchrist Mike Graham, CPM, SIOR Steve Graham, MAI, CRE Jerry L. Grant, CCIM Julie Hubbard Michael A. Lawley, CCIM Dan Lovell, SIOR, LEED AP Janie McDaniel

Jane McGriff Christie Neely Joelle Rogers Matt Rowan Hayden L. Scott, MAI Jordan W. Tubb

GRAHAM COMMERCIAL PROPERTIES

DeMarcus Bloxom Eleanor Caver Charlie Crane Sharon Cumens Carl Finch Maria Goldschmidt Henry V. Graham II Beth Gresham

Mike Grizzell John Hagefstration Janis Hagen Janice Ivy F. Craig Jackson Gardner Lee, CPM, SIOR Jebb Long Micia Hardaway

Betsy Lumpkin Rick Mason Mary Carol McDaniel Ashley Neil Susan Plate Brad Sandidge

David Thomas Stacey R. Wadsworth Sam Warbington Jamarcus Williams

20 GRAHAM & COMPANY | 2015 OFFICE MARKET SURVEY | BIRMINGHAM MEASURE US BY OUR ACTIONS

ABOUT GRAHAM & COMPANY Founded in 1978, Graham & Company is a full-service commercial real estate firm based in Birmingham . With offices in Birmingham and Huntsville, Alabama and Jacksonville and the Gulf Coast, Florida, the company offers professional services including sales, leasing, property management, appraisal, consulting, investment and development . In response to client demand, Graham has systematically extended its range of services and geographic reach, now serving clients throughout Alabama and several surrounding states .

COMMUNITY INVOLVEMENT Part of making Birmingham a better place to work includes teaching the next generation about commercial real estate . Graham & Company annually sponsors a community service program known as LEAD (Leadership, Experience, Attitude, Determination) . Through this program, we hire inner-city students from local high schools to spend a summer gaining experience and developing work skills in the commercial real estate industry . Also, Graham & Company employees volunteer their time and energy in support of a variety of community and social causes . AFFILIATIONS NAIOP–Commercial Real Estate Development Association SIOR–Society of Industrial & Office Realtors IREM–Institute of Real Estate Management CCIM–Certified Commercial Investment Member ICSC–International Council of Shopping Centers BOMA–Building Owners and Managers Association LEED–Leadership in Energy and Environmental Design CRE–Counselors of Real Estate Appraisal Institute

Birmingham • grahamcompany.com GRAHAM COMMERCIAL PROPERTIES • Birmingham • gcprei.com

PRINCIPALS CORPORATE SERVICES PRESIDENT INFORMATION TECHNOLOGY Steve Graham, MAI, CRE Michael A . Lawley, CCIM Gardner Lee, CPM, SIOR Jebb Long Mike Graham, CPM, SIOR – Chief Technology Officer COMMERCIAL APPRAISALS EXECUTIVE VICE PRESIDENT Mike Grizzell – IT Manager OFFICE GROUP Hayden L . Scott, MAI John Hagefstration Dan Lovell, SIOR, LEED AP – Director, Valuation Group ACCOUNTING CHIEF FINANCIAL OFFICER – Director Matt Rowan Maria Goldschmidt Brad Sandidge Walter Brown, SIOR – Appraiser Trainee – VP Finance/Controller

Sam Carroll, SIOR BUSINESS DEVELOPMENT Betsy Lumpkin – Manager MARKETING MEDIA Jerry L . Grant, CCIM Charlie Crane COORDINATOR Henry V . Graham II Matt Gilchrist Julie Hubbard Micia Hardaway Christie Neely HUMAN RESOURCES Janice Ivy – Asst . – Real Estate Asst . GRAPHIC DESIGN Janis Hagen Ashley Neil – Asst . Janie McDaniel Jane McGriff – Marketing Asst . PROPERTY MANAGEMENT RECEPTIONIST Stacey R . Wadsworth Susan Plate INDUSTRIAL GROUP HUNTSVILLE OFFICE – Director Jack Brown, SIOR MANAGING BROKER Eleanor Caver FACILITIES John Coleman, SIOR Bart Smith, CCIM, SIOR Beth Gresham DeMarcus Bloxom Sonny Culp, SIOR F . Craig Jackson Carl Finch III JACKSONVILLE OFFICE Sam Warbington, CSM Ogden S . Deaton, SIOR MANAGING BROKER Rick Mason Sharon Cumens Jordan W . Tubb Peter Crolius, SIOR David Thomas Robin Domit – Property & Lease Admin . Jamarcus Williams – Real Estate Asst . GULF COAST OFFICE Mary Carol McDaniel – Asst . Courtney DeShazo – Asst . Jason Carnes Joelle Rogers – Asst . Kevin Williams, CCIM

INDIVIDUAL INDIVIDUAL MEMBERSHIPS MEMBERSHIPS MEASURE US BY OUR ACTIONS

110 Office Park Drive, Suite 200 Birmingham, AL 35223 TEL 205.871.7100 FAX 205.871.3331

grahamcompany.com

BIRMINGHAM HUNTSVILLE JACKSONVILLE GULF COAST

HUNTSVILLE JACKSONVILLE GULF COAST

355 Quality Circle 550 Water Street 100 Richard Jackson Blvd. Suite E Suite 1225 Suite 115 Huntsville, AL 35806 Jacksonville, FL 32202 Panama City Beach, FL 32407 TEL 256.382.9010 TEL 904.281.0003 TEL 850.563.1500