Costar Office Report

CoStar Office Statistics

Third Quarter 2018 Atlanta Office Market Third Quarter 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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B CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics C Atlanta – Third Quarter 2018 Third Quarter 2018 – Atlanta Atlanta Office Market Atlanta Office Market

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 – Third Quarter 2018 Third Quarter 2018 – Atlanta Atlanta Office Market Atlanta Office Market Overview Atlanta’s Vacancy Stays at 11.6% Net Absorption Positive 119,725 SF in the Quarter

he Atlanta Office market ended the third quarter 2018 2018, positive 622,765 in the first quarter 2018, and positive with a vacancy rate of 11.6%. The vacancy rate was 587,452 in the fourth quarter 2017. T unchanged over the previous quarter, with net absorp- The Class-B office market recorded net absorption of pos- tion totaling positive 119,725 square feet in the third quarter. itive 148,241 square feet in the third quarter 2018, compared to Vacant sublease space increased in the quarter, ending the positive 159,292 square feet in the second quarter 2018, positive quarter at 1,934,341 square feet. Rental rates ended the third 330,931 in the first quarter 2018, and positive 191,888 in the quarter at $24.63, an increase over the previous quarter. A fourth quarter 2017. total of six buildings delivered to the market in the quarter The Class-C office market recorded net absorption of totaling 154,384 square feet, with 4,900,825 square feet still positive 9,698 square feet in the third quarter 2018 compared under construction at the end of the quarter. to positive 183,291 square feet in the second quarter 2018, negative 80,556 in the first quarter 2018, and positive 114,716 Absorption in the fourth quarter 2017. Net absorption for the overall Atlanta office market was Net absorption for Atlanta’s central business district was positive 119,725 square feet in the third quarter 2018. That positive 229,347 square feet in the third quarter 2018. That compares to positive 285,233 square feet in the second quarter compares to negative 136,591 square feet in the second quar- 2018, positive 873,140 square feet in the first quarter 2018, and ter 2018, positive 730,877 in the first quarter 2018, and positive positive 894,056 square feet in the fourth quarter 2017. 75,243 in the fourth quarter 2017. Tenants moving out of large blocks of space in 2018 Net absorption for the suburban markets was negative include: State Farm moving out of 187,358 square feet at 115 109,622 square feet in the third quarter 2018. That compares Perimeter Center Pl NE; AT&T moving out of 144,362 square to positive 421,824 square feet in second quarter 2018, positive feet at 675 W Peachtree St NW; HD Supply moving out of 142,263 in the first quarter 2018, and positive 818,813 in the 105,085 square feet at 3100 Cumberland Blvd SE. fourth quarter 2017. 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 remained at 11.6% at the end of second quarter through the square feet at 3400 SE Cumberland Blvd third quarter 2018. The vacancy rate was 11.5% at the end The Class-A office market recorded net absorption of of the first quarter 2018, and 11.4% at the end of the fourth negative 38,214 square feet in the third quarter 2018, com- quarter 2017. pared to negative 57,350 square feet in the second quarter Class-A projects reported a vacancy rate of 14.3% at the

Vacancy Rates by Class 1986-2018

A B C Total Market

30%

25%

20% Rate 15% Vacancy 10%

0% 19861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017 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 1.46 14.0% 1.4 1.24 12.0%

1.2 1.06 0.95 10.0% 1.0 0.89 0.85 0.87

0.8 Rate 8.0% 0.61 0.54 0.6 6.0% Millions SF

0.35 Vacancy 0.4 0.30 0.30 0.29 4.0% 0.19 0.16 0.15 0.2 0.12 2.0% 0.0 (0.05) (0.2) 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 � Third Quarter 2018 Third Quarter 2018 – Atlanta Atlanta Office Market Atlanta Office Market Overview

end of the second and third quarter 2018, 13.7% at the end of 1,449,446 square feet at the end of third quarter 2018, down of the first quarter 2018, and 13.4% at the end of the fourth from the 1,515,872 square feet reported at the end of the sec- quarter 2017. ond quarter 2018. There were 1,213,840 square feet of sublease Class-B projects reported a vacancy rate of 11.7% at the space vacant at the end of the first quarter 2018, and 1,136,802 end of the second and third quarter 2018, 11.8% at the end square feet at the end of the fourth quarter 2017. of the first quarter 2018, and 11.9% at the end of the fourth Class-B projects reported vacant sublease space of quarter 2017. 442,125 square feet at the end of the third quarter 2018, up Class-C projects reported a vacancy rate of 5.6% at the from the 338,094 square feet reported at the end of the sec- end of the second and third quarter 2018, 5.9% at the end of ond quarter 2018. At the end of the first quarter 2018 there the first quarter 2018 and fourth quarter 2017. were 351,566 square feet, and at the end of the fourth quarter The overall vacancy rate in Atlanta’s central business dis- 2017 there were 440,543 square feet vacant. trict at the end of the third quarter 2018 decreased to 10.4%. Class-C projects reported increased vacant sublease The vacancy rate was 10.6% at the end of the second quarter space from the second quarter 2018 to the third quarter 2018. 2018, 10.3% at the end of the first quarter 2018, and 10.7% at Sublease vacancy went from 36,257 square feet to 42,770 the end of the fourth quarter 2017. square feet during that time. There was 46,294 square feet at The vacancy rate in the suburban markets increased to the end of the first quarter 2018, and 47,793 square feet at the 12.1% in the third quarter 2018. The vacancy rate was 12.0% at end of the fourth quarter 2017. Vacancy Rates by Class 1986-2018 the end of the second quarter 2018, 11.9% at the end of the first Sublease vacancy in Atlanta’s central business district

A B C quarterTotal Marke 2018,t and 11.7% at the end of the fourth quarter 2017. stood at 436,113 square feet at the end of the third quarter 2018. It was 468,039 square feet at the end of the second Largest Lease Signings 30% quarter 2018, 505,077 square feet at the end of the first quarter The largest lease signings occurring in 2018 included: the 2018, and 470,295 square feet at the end of the fourth quarter 25% 265,535-square-foot renewal and expansion signed by Delta 2017. Dental Insurance Company at 1120 & 1130 Sanctuary Pky; the Sublease vacancy in the suburban markets ended the 20% 210,000-square-foot deal signed by ThyssenKrupp at 3 Battery third quarter 2018 at 1,498,228 square feet. At the end of the

Rate Ave; and the 204,211-square-foot deal signed by Insight Global second quarter 2018 sublease vacancy was 1,422,184 square 15% at 1224 Hammond Dr in the Central Perimeter market. feet, was 1,106,623 square feet at the end of the first quarter Vacancy 10% Sublease Vacancy 2018, and was 1,154,843 square feet at the end of the fourth The amount of vacant sublease space in the Atlanta quarter 2017. 5% market increased to 1,934,341 square feet by the end of the Rental Rates third quarter 2018, from 1,890,223 square feet at the end of the The average quoted asking rental rate for available office 0% second quarter 2018. There was 1,611,700 square feet vacant at 19861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017 space, all classes, was $24.63 per square foot per year at the 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q 4q the4q end4q 4qof the4q first4q 4qquarter4q 4q 20184q and4q 4q1,625,1384q 4q square4q 4q feet at end of the third quarter 2018 in the Atlanta market area. This the end of the fourth quarter 2017. Source: CoStar Property® represented a 2.8% increase in quoted rental rates from the Atlanta’s Class-A projects reported vacant sublease space end of the second quarter 2018, when rents were reported at Absorption & Deliveries U.S. Vacancy Comparison $23.96 per square foot. The average quoted rate within the Class-A sector was Past 9 Quarters Past 9 Quarters $29.84 at the end of the third quarter 2018, while Class-B rates Net Absorption Deliveries Atlanta United States stood at $19.59, and Class-C rates at $15.71. At the end of the 1.6 1.46 14.0% second quarter 2018, Class-A rates were $29.22 per square foot, 1.4 1.24 12.0% Class-B rates were $19.49, and Class-C rates were $15.72. 1.2 1.06 The average quoted asking rental rate in Atlanta’s CBD 0.95 10.0% 1.0 0.89 0.85 0.87 was $31.99 at the end of the third quarter 2018, and $22.19

0.8 Rate 8.0% in the suburban markets. In the second quarter 2018, quoted 0.61 0.54 0.6 6.0% rates were $31.22 in the CBD and $21.74 in the suburbs. Millions SF

0.35 Vacancy 0.4 0.30 0.30 0.29 4.0% Deliveries and Construction 0.19 0.16 0.15 0.2 0.12 During the third quarter 2018, six buildings totaling 2.0% 0.0 154,384 square feet were completed in the Atlanta market (0.05) (0.2) 0.0% area. This compares to 10 buildings totaling 609,060 square 2016 3q 2017 1q 2017 3q 2018 1q 2018 3q 2016 3q 2017 1q 2017 3q 2018 1q 2018 3q feet that were completed in the second quarter 2018, 19 build-

Source: CoStar Property® Source: CoStar Property®

A B C Total Market

30%

25%

20% Rate 15% Vacancy 10%

Atlanta � Third Quarter 2018 0% Third Quarter 2018 – Atlanta 19861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017 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 Overview Source: CoStar Property®

ings totaling 1,235,258 square feet completed in the first quar- Absorption & Deliveries U.S. Vacancy Comparison ter 2018, and 541,335 square feet in eight buildings completed Past 9 Quarters Past 9 Quarters in the fourth quarter 2017. Net Absorption Deliveries There were 4,900,825 square feet of office space under Atlanta United States 1.6 1.46 14.0% construction at the end of the third quarter 2018. 1.4 Some of the notable 2018 deliveries include: 864 Spring 1.24 12.0% St, a 485,000-square-foot facility that delivered in first quarter 1.2 1.06 0.95 10.0% 1.0 0.89 2018 and is now 100% occupied by NCR, and 4004 Perimeter 0.85 0.87

Summit, a 355,250-square-foot building that delivered in 0.8 Rate 8.0% 0.61 0.54 first quarter 2018 and is now 14% occupied by Carr, Riggs & 0.6 6.0% Millions SF

0.35 Vacancy Ingram. 0.4 0.30 0.30 0.29 4.0% The largest projects underway at the end of third quarter 0.19 0.16 0.15 0.2 0.12 2018 were 771 Spring St, a 760,000-square-foot building with 2.0% 68% of its space pre-leased to WeWork, Keysight Technologies, 0.0 (0.05) ThyssenKrupp and Georgia Tech, and 240 Perimeter Center Pky (0.2) 0.0% 2016 3q 2017 1q 2017 3q 2018 1q 2018 3q 2016 3q 2017 1q 2017 3q 2018 1q 2018 3q NE, a 670,000-square-foot facility that is 100% pre-leased to State Farm. Source: CoStar Property® Source: CoStar Property® total square footage in the first quarter was 4,078,009 square Inventory feet for an average price per square foot of $199.65. Total office inventory in the Atlanta market area amount- Total office building sales activity in 2018 was up com- ed to 313,720,119 square feet in 16,484 buildings as of the end pared to 2017. In the first six months of 2018, the market saw 82 of the third quarter 2018. The Class-A office sector consisted office sales transactions with a total volume of $1,214,906,900. of 118,883,084 square feet in 531 projects. There were 6,236 The price per square foot averaged $179.91. In the same first Class-B buildings totaling 140,482,225 square feet, and the six months of 2017, the market posted 64 transactions with a Class-C sector consisted of 54,354,810 square feet in 9,717 total volume of $1,121,588,621. The price per square foot aver- buildings. Within the Office market there were 685 owner- aged $141.84. occupied buildings accounting for 33,504,049 square feet of Cap rates have been higher in 2018, averaging 8.25% office space. compared to the same period in 2017 when they averaged 7.79%. Sales Activity One of the largest transactions that has occurred within Tallying office building sales of 15,000 square feet or larg- the last four quarters in the Atlanta market is the sale of Three er, Atlanta office sales figures fell during the second quarter Alliance Center in Atlanta. This 506,647-square-foot office 2018 in terms of dollar volume compared to the first quarter building sold for $270,000,000, or $532.92 per square foot. The of 2018. property sold on 1/5/2018, at a 6.35% cap rate. In the second quarter, 38 office transactions closed with a total volume of $400,746,487. The 38 buildings totaled 2,674,937 square feet and the average price per square foot Reports compiled by: Emily Thompson, Senior Research Manager; Leo equated to $149.82 per square foot. That compares to 44 Chappell and Drew Kisamore, Research Managers transactions totaling $814,160,413 in the first quarter 2018. The

2 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 3 Atlanta � Third Quarter 2018 Third Quarter 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 � Third Quarter 2018 Third Quarter 2018 – Atlanta Atlanta Office Market Atlanta Office Market Inventory & development

Historical Deliveries 1982 - 2018

Deliveries Average Delivered SF 16.0

13.8 14.0 13.1 12.4 12.0 11.6 11.4 12.0 10.9 9.7 10.0 8.6 7.6 7.7 8.0 7.3 7.1 6.3 6.4 6.3 5.8 5.7 Millions of SF 6.0 5.1 4.8 4.4 4.2 4.0 3.7 3.5 4.0 3.0 2.9 3.0 2.5 2.1 1.5 1.6 1.5 2.0 1.0 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 8 2,181,540 1,348,709 61.8% 59,487 272,692 Central Perimeter 2 1,005,000 874,350 87.0% 50,451 502,500 North Fulton 13 873,202 488,294 55.9% 19,705 67,169 Northwest Atlanta 4 376,841 231,020 61.3% 15,828 94,210 South Atlanta 4 148,872 107,674 72.3% 9,677 37,218 Northeast Atlanta 8 96,760 29,572 30.6% 12,527 12,095 Downtown Atlanta 3 70,300 0 0.0% 91,186 23,433 Northlake 2 61,500 49,500 80.5% 13,280 30,750 Buckhead 1 49,200 49,200 100.0% 56,682 49,200 West Atlanta 1 37,610 27,455 73.0% 6,914 37,610 All Other 0 0 0 0.0% 8,185 0 Totals 46 4,900,825 3,205,774 65.4% 19,032 106,540

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 1,800

1,600 3.0 1,400

2.5 1,200 T

2.0 1,000

800 1.5 sands of SF Millions of SF ou

Th 600 1.0 400 0.5 200

0.0 0 2014 2016 2018 2018 4q 2019 2q

Source: CoStar Property® Source: CoStar Property®

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

Construction Starts Deliveries 2.0 1.67

1.46 1.46 1.5 1.29 1.23 1.24 1.26

0.95 1.0

0.63 0.61 0.54 0.45 0.49 0.48 0.44 0.5 0.35 Millions of SF 0.32 0.26 0.27 0.250.30 0.25 0.14 0.15 0.16 0.15 0.09 0.10 0.08 0.0

(0.17) (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 29 387,401 246,845 63.7% $29.84 63,000 324,401

50,000 SF - 99,999 SF 2 121,000 109,600 90.6% $34.98 0 121,000

100,000 SF - 249,999 SF 5 769,235 546,878 71.1% $33.04 422,000 347,235

250,000 SF - 499,999 SF 2 840,250 534,735 63.6% $39.92 485,000 355,250

>= 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% 49% 33%

45% 38% 51% 67% 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 � Third Quarter 2018 Third Quarter 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 � Third Quarter 2018 Third Quarter 2018 – Atlanta Atlanta Office Market Atlanta Office Market Figures at a Glance

Class A Market Statistics Third Quarter 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 17,806,571 2,684,295 2,818,685 15.8% 107,913 0 0 $34.95

Central Perimeter 82 22,438,710 2,967,794 3,259,402 14.5% (4,308) 555,250 1,005,000 $30.15

Downtown Atlanta 21 11,816,980 1,955,589 2,056,304 17.4% 304,263 0 0 $27.93

Gainesville 4 300,388 39,651 39,651 13.2% (12,770) 0 0 $23.64

Jefferson 1 5,500 0 0 0.0% 5,500 5,500 0 $25.18

Midtown Atlanta 50 18,297,530 1,763,139 1,933,979 10.6% 311,218 485,000 2,158,453 $36.97

North Fulton 112 16,483,446 1,849,292 2,033,568 12.3% 21,893 274,033 788,902 $26.11

Northeast Atlanta 56 6,939,222 1,189,507 1,304,005 18.8% (244,158) 27,944 20,000 $21.45

Northlake 27 3,707,743 383,614 393,480 10.6% 115,445 110,000 48,000 $25.71

Northwest Atlanta 87 18,982,265 2,485,901 2,929,154 15.4% (130,347) 222,000 369,000 $27.65

South Atlanta 28 2,015,129 186,044 186,044 9.2% 48,564 40,000 118,872 $24.73

West Atlanta 1 89,600 85,612 85,612 95.5% 3,988 0 0 $24.48

Totals 531 118,883,084 15,590,438 17,039,884 14.3% 527,201 1,719,727 4,508,227 $29.84

Source: CoStar Property®

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

Buckhead 107 4,360,758 283,247 295,537 6.8% 2,978 0 49,200 $25.58

Central Perimeter 272 9,597,949 1,353,864 1,366,530 14.2% 196,917 0 0 $22.26

Downtown Atlanta 169 19,780,954 1,041,274 1,044,349 5.3% 236,251 61,000 70,300 $22.04

Gainesville 171 2,426,874 171,465 171,465 7.1% 29,306 0 0 $18.60

Jefferson 28 202,101 0 0 0.0% 0 0 0 $12.87

Midtown Atlanta 145 5,854,286 192,734 197,629 3.4% (33,352) 20,149 23,087 $27.38

North Fulton 949 16,923,647 1,969,423 2,173,176 12.8% (220,016) 77,584 84,300 $20.26

Northeast Atlanta 1,355 22,193,482 4,004,731 4,033,979 18.2% (72,764) 28,002 76,760 $17.45

Northlake 688 17,974,499 1,873,498 1,885,086 10.5% 84,883 0 13,500 $19.34

Northwest Atlanta 1,260 23,045,322 2,781,714 2,848,357 12.4% 292,232 41,800 7,841 $19.79

South Atlanta 828 14,548,823 1,692,094 1,790,061 12.3% 92,935 39,282 30,000 $17.63

West Atlanta 264 3,573,530 572,138 572,138 16.0% 29,094 11,158 37,610 $16.86

Totals 6,236 140,482,225 15,936,182 16,378,307 11.7% 638,464 278,975 392,598 $19.59

Source: CoStar Property®

Class C Market Statistics Third Quarter 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 42,995 42,995 2.6% 12,937 0 0 $24.77

Central Perimeter 332 2,572,606 140,342 141,366 5.5% 18,504 0 0 $16.13

Downtown Atlanta 208 4,694,232 361,547 376,097 8.0% 15,903 0 0 $18.92

Gainesville 392 1,907,458 87,588 92,388 4.8% 11,090 0 0 $13.95

Jefferson 53 470,010 4,912 4,912 1.0% (2,350) 0 0 $2.34

Midtown Atlanta 242 1,844,084 66,450 66,450 3.6% 23,959 0 0 $25.44

North Fulton 847 4,189,781 163,809 165,358 3.9% 73,805 0 0 $15.42

Northeast Atlanta 1,480 7,083,272 522,536 529,344 7.5% (32,760) 0 0 $13.51

Northlake 1,621 9,339,099 465,992 468,892 5.0% (55,692) 0 0 $16.00

Northwest Atlanta 1,898 9,335,887 371,630 372,718 4.0% 104,837 0 0 $14.47

South Atlanta 1,754 8,692,447 579,964 586,665 6.7% (34,993) 0 0 $16.40

West Atlanta 639 2,586,714 170,585 173,935 6.7% (22,807) 0 0 $15.50

Totals 9,717 54,354,810 2,978,350 3,021,120 5.6% 112,433 0 0 $15.71

Source: CoStar Property®

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

Buckhead 420 23,806,549 3,010,537 3,157,217 13.3% 123,828 0 49,200 $33.96

Central Perimeter 686 34,609,265 4,462,000 4,767,298 13.8% 211,113 555,250 1,005,000 $27.47

Downtown Atlanta 398 36,292,166 3,358,410 3,476,750 9.6% 556,417 61,000 70,300 $25.79

Gainesville 567 4,634,720 298,704 303,504 6.5% 27,626 0 0 $18.22

Jefferson 82 677,611 4,912 4,912 0.7% 3,150 5,500 0 $5.62

Midtown Atlanta 437 25,995,900 2,022,323 2,198,058 8.5% 301,825 505,149 2,181,540 $35.71

North Fulton 1,908 37,596,874 3,982,524 4,372,102 11.6% (124,318) 351,617 873,202 $22.90

Northeast Atlanta 2,891 36,215,976 5,716,774 5,867,328 16.2% (349,682) 55,946 96,760 $18.23

Northlake 2,336 31,021,341 2,723,104 2,747,458 8.9% 144,636 110,000 61,500 $19.62

Northwest Atlanta 3,245 51,363,474 5,639,245 6,150,229 12.0% 266,722 263,800 376,841 $23.50

South Atlanta 2,610 25,256,399 2,458,102 2,562,770 10.1% 106,506 79,282 148,872 $18.08

West Atlanta 904 6,249,844 828,335 831,685 13.3% 10,275 11,158 37,610 $16.57

Totals 16,484 313,720,119 34,504,970 36,439,311 11.6% 1,278,098 1,998,702 4,900,825 $24.63

Source: CoStar Property®

10 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 11 Atlanta � Third Quarter 2018 Third Quarter 2018 – Atlanta Atlanta Office Market Atlanta Office Market Figures at a Glance

Class A Submarket Statistics Third Quarter 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 82 22,438,710 2,967,794 3,259,402 14.5% (4,308) 555,250 1,005,000 $30.15 Chamblee/Dville/N D . 11 1,346,455 157,756 157,756 11.7% 107,784 110,000 48,000 $27.76 Cherokee County 8 432,442 18,023 19,523 4.5% 5,661 0 0 $22.87 Cumberland/Galleria 63 16,780,017 2,443,138 2,839,360 16.9% (94,287) 222,000 369,000 $27.70 Dawson County 0 0 0 0 0.0% 0 0 0 $0.00 Decatur 9 1,525,021 40,323 50,189 3.3% 5,603 0 0 $25.94 Douglasville/Lithia. 0 0 0 0 0.0% 0 0 0 $0.00 Downtown Atlanta 21 11,816,980 1,955,589 2,056,304 17.4% 304,263 0 0 $27.93 Duluth/Suwanee/Bufor. 33 4,780,080 622,820 717,562 15.0% (90,537) 27,944 0 $21.73 East Cobb 2 277,000 0 0 0.0% 0 0 0 $0.00 Fayette/Coweta Count. 11 748,798 120,434 120,434 16.1% 24,793 40,000 0 $24.77 Gainesville/Hall Cou. 4 300,388 39,651 39,651 13.2% (12,770) 0 0 $23.64 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 1 5,500 0 0 0.0% 5,500 5,500 0 $25.18 Jasper County 0 0 0 0 0.0% 0 0 0 $0.00 Kennesaw/Town Center 14 1,492,806 24,740 70,271 4.7% (41,721) 0 0 $25.95 Lamar County 0 0 0 0 0.0% 0 0 0 $0.00 Lawrenceville/Lilbur. 4 403,354 61,585 64,128 15.9% (1,272) 0 0 $26.64 Lower Buckhead 5 407,665 148,393 150,667 37.0% 59,336 0 0 $30.63 Meriwether County 0 0 0 0 0.0% 0 0 0 $0.00 Midtown/Pershing Poi. 44 17,659,924 1,751,299 1,917,497 10.9% 186,465 485,000 2,158,453 $36.98 N Fulton/Forsyth Cou. 112 16,483,446 1,849,292 2,033,568 12.3% 21,893 274,033 788,902 $26.11 Newton County 1 55,385 0 0 0.0% 0 0 0 $0.00 Norcross/Ptree Corne. 19 1,755,788 505,102 522,315 29.7% (152,349) 0 20,000 $20.73 North Clayton/Airpor. 12 1,070,386 65,610 65,610 6.1% 23,646 0 51,272 $24.70 Northlake/Lavista 2 541,625 46,574 46,574 8.6% (6,655) 0 0 $21.00 Northside Dr/Georgia. 6 637,606 11,840 16,482 2.6% 124,753 0 0 $35.50 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. 4 173,945 0 0 0.0% 125 0 67,600 $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 17,398,906 2,535,902 2,668,018 15.3% 48,577 0 0 $35.15 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 85,612 85,612 95.5% 3,988 0 0 $24.48 Totals 531 118,883,084 15,590,438 17,039,884 14.3% 527,201 1,719,727 4,508,227 $29.84

Source: CoStar Property®

Class B Submarket Statistics Third Quarter 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 63 343,128 35,297 35,297 10.3% (8,391) 8,400 24,000 $19.05 Bartow County 76 734,386 64,598 64,598 8.8% 11,265 0 5,000 $16.86 Butts County 5 39,991 0 1,575 3.9% (1,575) 0 0 $0.00 Central Perimeter 272 9,597,949 1,353,864 1,366,530 14.2% 196,917 0 0 $22.26 Chamblee/Dville/N D . 205 7,272,253 684,043 689,550 9.5% 57,332 0 0 $19.19 Cherokee County 252 2,157,018 160,604 160,604 7.4% 15,173 36,000 2,841 $19.40 Cumberland/Galleria 282 11,115,405 1,737,348 1,762,052 15.9% 131,154 0 0 $20.08 Dawson County 28 265,216 27,062 27,062 10.2% 2,161 0 0 $18.48 Decatur 111 3,851,230 90,944 90,944 2.4% 23,212 0 13,500 $24.44 Douglasville/Lithia . 128 1,591,408 86,201 86,201 5.4% (6,473) 0 0 $16.70 Downtown Atlanta 169 19,780,954 1,041,274 1,044,349 5.3% 236,251 61,000 70,300 $22.04 Duluth/Suwanee/Bufor. 598 10,257,005 1,903,552 1,914,835 18.7% (182,226) 13,602 46,760 $17.28 East Cobb 166 2,135,890 192,348 192,348 9.0% 41,724 0 0 $17.96 Fayette/Coweta Count. 326 3,433,015 298,748 307,005 8.9% 284 8,282 0 $17.07 Gainesville/Hall Cou. 171 2,426,874 171,465 171,465 7.1% 29,306 0 0 $18.60 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 2,150,465 198,613 202,150 9.4% 22,576 0 0 $17.13 Jackson County 28 202,101 0 0 0.0% 0 0 0 $12.87 Jasper County 1 4,400 0 0 0.0% 0 0 0 $0.00 Kennesaw/Town Center 452 6,643,241 617,774 659,713 9.9% 66,890 5,800 0 $20.19 Lamar County 2 17,174 12,778 12,778 74.4% (778) 0 0 $0.00 Lawrenceville/Lilbur. 392 4,067,098 400,170 401,470 9.9% 41,674 6,000 6,000 $18.02 Lower Buckhead 21 1,667,380 73,177 81,467 4.9% 26,223 0 49,200 $26.93 Meriwether County 3 8,404 0 0 0.0% 0 0 0 $0.00 Midtown/Pershing Poi. 111 5,146,154 140,571 145,466 2.8% (37,388) 0 23,087 $27.17 N Fulton/Forsyth Cou. 921 16,658,431 1,942,361 2,146,114 12.9% (222,177) 77,584 84,300 $20.29 Newton County 47 441,069 7,025 7,025 1.6% 230 0 0 $11.41 Norcross/Ptree Corne. 219 7,056,223 1,643,781 1,660,446 23.5% 81,341 0 0 $17.35 North Clayton/Airpor. 259 8,088,910 1,173,177 1,250,453 15.5% 42,644 20,000 30,000 $17.69 Northlake/Lavista 101 3,717,464 850,030 852,574 22.9% (13,743) 0 0 $19.92 Northside Dr/Georgia. 34 708,132 52,163 52,163 7.4% 4,036 20,149 0 $28.33 Pickens County 32 259,382 9,042 9,042 3.5% 26,026 0 0 $11.44 Pike County 1 3,672 0 0 0.0% 0 0 0 $0.00 South Clayton/Henry . 196 2,701,149 184,546 195,405 7.2% 46,930 11,000 0 $18.31 Spalding County 35 252,108 22,845 22,845 9.1% 5,430 0 0 $16.94 Stone Mountain 41 542,018 42,843 42,843 7.9% (4,724) 0 0 $15.37 Upper Buckhead 86 2,693,378 210,070 214,070 7.9% (23,245) 0 0 $24.95 Villa Rica/West Outl. 56 637,484 52,325 52,325 8.2% 6,293 0 0 $17.55 W Carroll County 42 410,099 20,295 20,295 4.9% 18,966 6,440 0 $18.63 Walton County 83 470,028 21,931 21,931 4.7% (5,162) 0 0 $18.74 West Atlanta 33 877,460 413,317 413,317 47.1% 10,308 4,718 37,610 $16.02 Totals 6,236 140,482,225 15,936,182 16,378,307 11.7% 638,464 278,975 392,598 $19.59

Source: CoStar Property®

12 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 13 Atlanta � Third Quarter 2018 Third Quarter 2018 – Atlanta Atlanta Office Market Atlanta Office Market Figures at a Glance

Class C Submarket Statistics Third Quarter 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 25,885 28,065 7.2% 9,079 0 0 $9.39 Bartow County 138 558,685 24,662 24,662 4.4% (1,772) 0 0 $11.00 Butts County 48 187,157 3,554 3,554 1.9% (854) 0 0 $0.00 Central Perimeter 332 2,572,606 140,342 141,366 5.5% 18,504 0 0 $16.13 Chamblee/Dville/N D . 362 2,773,090 103,128 103,128 3.7% 47,375 0 0 $16.92 Cherokee County 287 1,422,369 33,704 33,704 2.4% 1,059 0 0 $16.87 Cumberland/Galleria 407 2,552,549 138,004 139,092 5.4% 44,652 0 0 $14.33 Dawson County 31 167,006 12,044 12,044 7.2% (2,056) 0 0 $15.09 Decatur 276 1,903,635 112,593 115,493 6.1% (46,948) 0 0 $18.28 Douglasville/Lithia . 265 1,102,143 63,413 66,763 6.1% (5,959) 0 0 $16.90 Downtown Atlanta 208 4,694,232 361,547 376,097 8.0% 15,903 0 0 $18.92 Duluth/Suwanee/Bufor. 371 1,867,538 137,119 139,173 7.5% (52,061) 0 0 $15.70 East Cobb 202 986,664 51,386 51,386 5.2% (2,218) 0 0 $13.46 Fayette/Coweta Count. 412 2,011,222 110,247 110,247 5.5% (7,823) 0 0 $13.20 Gainesville/Hall Cou. 392 1,907,458 87,588 92,388 4.8% 11,090 0 0 $13.95 Haralson County 29 93,207 3,755 3,755 4.0% 500 0 0 $11.37 Heard County 0 0 0 0 0.0% 0 0 0 $0.00 I-20 East/Conyers 418 2,377,791 169,258 169,258 7.1% (104,307) 0 0 $13.75 Jackson County 53 470,010 4,912 4,912 1.0% (2,350) 0 0 $2.34 Jasper County 8 32,857 0 0 0.0% 2,300 0 0 $0.00 Kennesaw/Town Center 831 3,704,265 123,874 123,874 3.3% 51,438 0 0 $14.97 Lamar County 10 65,861 0 0 0.0% 0 0 0 $0.00 Lawrenceville/Lilbur. 682 2,824,689 126,592 126,592 4.5% 16,954 0 0 $14.22 Lower Buckhead 30 511,626 9,440 9,440 1.8% 375 0 0 $26.08 Meriwether County 18 55,818 3,006 3,006 5.4% (3,006) 0 0 $0.00 Midtown/Pershing Poi. 172 1,267,050 55,913 55,913 4.4% (5,689) 0 0 $25.54 N Fulton/Forsyth Cou. 816 4,022,775 151,765 153,314 3.8% 75,861 0 0 $15.44 Newton County 143 530,135 5,016 5,016 0.9% 7,234 0 0 $17.14 Norcross/Ptree Corne. 220 1,597,649 215,015 217,589 13.6% (5,272) 0 0 $12.88 North Clayton/Airpor. 731 3,935,441 359,825 366,526 9.3% (32,613) 0 0 $15.64 Northlake/Lavista 218 1,003,831 53,984 53,984 5.4% 20,373 0 0 $16.74 Northside Dr/Georgia. 70 577,034 10,537 10,537 1.8% 29,648 0 0 $25.33 Pickens County 33 111,355 0 0 0.0% 11,678 0 0 $18.05 Pike County 8 98,972 0 0 0.0% 0 0 0 $17.30 South Clayton/Henry . 389 1,684,975 57,646 57,646 3.4% 5,091 0 0 $17.17 Spalding County 130 620,144 45,686 45,686 7.4% 1,912 0 0 $28.79 Stone Mountain 204 750,617 22,013 22,013 2.9% 20,581 0 0 $13.21 Upper Buckhead 221 1,127,594 33,555 33,555 3.0% 12,562 0 0 $24.68 Villa Rica/West Outl. 146 466,692 33,889 33,889 7.3% (11,336) 0 0 $12.19 W Carroll County 96 508,575 44,775 44,775 8.8% 6,391 0 0 $15.78 Walton County 108 402,178 17,925 17,925 4.5% (1,460) 0 0 $10.75 West Atlanta 103 416,097 24,753 24,753 5.9% (12,403) 0 0 $14.50 Totals 9,717 54,354,810 2,978,350 3,021,120 5.6% 112,433 0 0 $15.71

Source: CoStar Property®

Total Office Submarket Statistics Third Quarter 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 162 734,346 61,182 63,362 8.6% 688 8,400 24,000 $15.47 Bartow County 214 1,293,071 89,260 89,260 6.9% 9,493 0 5,000 $14.90 Butts County 53 227,148 3,554 5,129 2.3% (2,429) 0 0 $0.00 Central Perimeter 686 34,609,265 4,462,000 4,767,298 13.8% 211,113 555,250 1,005,000 $27.47 Chamblee/Dville/N D . 578 11,391,798 944,927 950,434 8.3% 212,491 110,000 48,000 $20.30 Cherokee County 547 4,011,829 212,331 213,831 5.3% 21,893 36,000 2,841 $19.06 Cumberland/Galleria 752 30,447,971 4,318,490 4,740,504 15.6% 81,519 222,000 369,000 $25.03 Dawson County 59 432,222 39,106 39,106 9.0% 105 0 0 $17.35 Decatur 396 7,279,886 243,860 256,626 3.5% (18,133) 0 13,500 $22.99 Douglasville/Lithia . 393 2,693,551 149,614 152,964 5.7% (12,432) 0 0 $16.79 Downtown Atlanta 398 36,292,166 3,358,410 3,476,750 9.6% 556,417 61,000 70,300 $25.79 Duluth/Suwanee/Bufor. 1,002 16,904,623 2,663,491 2,771,570 16.4% (324,824) 41,546 46,760 $18.92 East Cobb 370 3,399,554 243,734 243,734 7.2% 39,506 0 0 $17.16 Fayette/Coweta Count. 749 6,193,035 529,429 537,686 8.7% 17,254 48,282 0 $17.69 Gainesville/Hall Cou. 567 4,634,720 298,704 303,504 6.5% 27,626 0 0 $18.22 Haralson County 33 138,290 3,755 3,755 2.7% 500 0 0 $11.37 Heard County 1 11,996 0 0 0.0% 0 0 0 $0.00 I-20 East/Conyers 605 4,767,513 506,832 510,369 10.7% (73,018) 0 0 $16.31 Jackson County 82 677,611 4,912 4,912 0.7% 3,150 5,500 0 $5.62 Jasper County 9 37,257 0 0 0.0% 2,300 0 0 $0.00 Kennesaw/Town Center 1,297 11,840,312 766,388 853,858 7.2% 76,607 5,800 0 $19.90 Lamar County 12 83,035 12,778 12,778 15.4% (778) 0 0 $0.00 Lawrenceville/Lilbur. 1,078 7,295,141 588,347 592,190 8.1% 57,356 6,000 6,000 $17.57 Lower Buckhead 56 2,586,671 231,010 241,574 9.3% 85,934 0 49,200 $29.06 Meriwether County 21 64,222 3,006 3,006 4.7% (3,006) 0 0 $0.00 Midtown/Pershing Poi. 327 24,073,128 1,947,783 2,118,876 8.8% 143,388 485,000 2,181,540 $36.00 N Fulton/Forsyth Cou. 1,849 37,164,652 3,943,418 4,332,996 11.7% (124,423) 351,617 873,202 $22.94 Newton County 191 1,026,589 12,041 12,041 1.2% 7,464 0 0 $13.13 Norcross/Ptree Corne. 458 10,409,660 2,363,898 2,400,350 23.1% (76,280) 0 20,000 $17.81 North Clayton/Airpor. 1,002 13,094,737 1,598,612 1,682,589 12.8% 33,677 20,000 81,272 $17.96 Northlake/Lavista 321 5,262,920 950,588 953,132 18.1% (25) 0 0 $19.83 Northside Dr/Georgia. 110 1,922,772 74,540 79,182 4.1% 158,437 20,149 0 $28.79 Pickens County 65 370,737 9,042 9,042 2.4% 37,704 0 0 $11.99 Pike County 9 102,644 0 0 0.0% 0 0 0 $17.30 South Clayton/Henry . 589 4,560,069 242,192 253,051 5.5% 52,146 11,000 67,600 $17.91 Spalding County 166 894,252 68,531 68,531 7.7% 7,342 0 0 $24.34 Stone Mountain 245 1,292,635 64,856 64,856 5.0% 15,857 0 0 $14.73 Upper Buckhead 364 21,219,878 2,779,527 2,915,643 13.7% 37,894 0 0 $34.32 Villa Rica/West Outl. 202 1,104,176 86,214 86,214 7.8% (5,043) 0 0 $16.86 W Carroll County 138 918,674 65,070 65,070 7.1% 25,357 6,440 0 $17.56 Walton County 191 872,206 39,856 39,856 4.6% (6,622) 0 0 $15.37 West Atlanta 137 1,383,157 523,682 523,682 37.9% 1,893 4,718 37,610 $16.04 Totals 16,484 313,720,119 34,504,970 36,439,311 11.6% 1,278,098 1,998,702 4,900,825 $24.63

Source: CoStar Property®

14 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 15 Atlanta � Third Quarter 2018 Third Quarter 2018 – Atlanta Atlanta Office Market Atlanta Office Market Figures at a Glance

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

CBD 127 47,283,475 6,391,183 6,792,486 14.4% 598,641 485,000 2,158,453 $33.79

Suburban 404 71,599,609 9,199,255 10,247,398 14.3% (71,440) 1,234,727 2,349,774 $27.24

Totals 531 118,883,084 15,590,438 17,039,884 14.3% 527,201 1,719,727 4,508,227 $29.84 Source: CoStar Property®

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

CBD 387 29,287,866 1,465,092 1,485,352 5.1% 201,841 61,000 142,587 $23.92

Suburban 5,849 111,194,359 14,471,090 14,892,955 13.4% 436,623 217,975 250,011 $19.21

Totals 6,236 140,482,225 15,936,182 16,378,307 11.7% 638,464 278,975 392,598 $19.59 Source: CoStar Property®

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

CBD 631 7,600,502 460,455 475,005 6.2% 23,151 0 0 $20.71

Suburban 9,086 46,754,308 2,517,895 2,546,115 5.4% 89,282 0 0 $14.95

Totals 9,717 54,354,810 2,978,350 3,021,120 5.6% 112,433 0 0 $15.71 Source: CoStar Property®

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

CBD 514 76,571,341 7,856,275 8,277,838 10.8% 800,482 546,000 2,301,040 $32.48

Suburban 6,253 182,793,968 23,670,345 25,140,353 13.8% 365,183 1,452,702 2,599,785 $22.92

Totals 6,767 259,365,309 31,526,620 33,418,191 12.9% 1,165,665 1,998,702 4,900,825 $25.40 Source: CoStar Property®

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

CBD 1,145 84,171,843 8,316,730 8,752,843 10.4% 823,633 546,000 2,301,040 $31.99

Suburban 15,339 229,548,276 26,188,240 27,686,468 12.1% 454,465 1,452,702 2,599,785 $22.19

Totals 16,484 313,720,119 34,504,970 36,439,311 11.6% 1,278,098 1,998,702 4,900,825 $24.63 Source: CoStar Property®

��

16 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 17 Atlanta � Third Quarter 2018 Third Quarter 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

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% 12%

45% 46%

47% 42% 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 3.5 3.28 $30.00 3.0 2.81 $25.00 2.5 $20.00

   2.0   

 $15.00

 1.5 

  $10.00 1.0

$5.00 0.5 0.17 0.00 0.00 0.08 $0.00 0.0 2016 3q 2017 3q 2018 3q 2018 4q 2019 2q 2019 4q

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 214,194 2nd Delta Dental Insurance Company ICON Commercial Interests JLL

2 The Battery - Circle 75 & Cobb Parkway Cumberland/Galleria 210,000 3rd ThyssenKrupp ICON Commercial Interests JLL

3 1224 Hammond Dr - Twelve24 Central Perimeter 204,211 1st Insight Global Colliers International CBRE

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

5 100 Southcrest Dr South Clayton/Henry Cnty 120,276 2nd Conduent N/A JLL

6 10000 Avalon N Fulton/Forsyth County 75,000 2nd AXIS Capital Holdings CBRE Hines; Cousins Properties

7 1950 Spectrum Cir SE Cumberland/Galleria 68,023 2nd BlueLinx Corporation Transwestern CBRE

8 3100 Interstate N Cir Cumberland/Galleria 67,002 3rd Thyssenkrupp Cushman & Wake�eld Cushman & Wake�eld

9 5780 Powers Ferry Rd NW Cumberland/Galleria 66,310 2nd N/A N/A JLL

10 100 Peachtree St NW Downtown Atlanta 58,233 2nd Call Rail N/A JLL

11 1055 Howell Mill Rd Northside Dr/Georgia Tech 56,120 2nd Regus JLL JLL

12 771 Spring St - Coda Midtown/Pershing Point 51,719 1st WeWork Cushman & Wake�eld JLL

13 1120 Sanctuary Pky - Stonebridge II N Fulton/Forsyth County 51,341 2nd Delta Dental Insurance Company CBIZ Gibraltar Real Estate JLL

14 1600 Terrell Mill Rd SE Cumberland/Galleria 50,972 1st First Data N/A Avison Young

15 3414 Peachtree Rd NE - Monarch Plaza* Upper Buckhead 50,248 2nd Baker Donelson Savills Studley Highwoods Properties

16 4004 Perimeter Summit Central Perimeter 49,544 3rd Carr, Riggs, & Ingram Savills Studley CBRE

17 1745 Peachtree St NE Lower Buckhead 49,200 3rd FullStory Joel & Granot Real Estate Direct Deal

18 3225 Cumberland Blvd SE Cumberland/Galleria 49,158 3rd N/A Scotland Wright Associates Colliers International

19 1155 Peachtree St NE Midtown/Pershing Point 49,000 3rd Pandora Media CBRE Capital Real Estate Group

20 1125 Sanctuary Pky N Fulton/Forsyth County 47,308 3rd Thrivent Financial WM. Leonard & Co. JLL

21 980 Hammond Dr NE Central Perimeter 43,921 2nd Edible Arrangements Savills Studley JLL

22 3344 Peachtree Rd NE* Upper Buckhead 42,914 3rd Fifth Third Bank CBRE Cousins Properties

23 4800 North Point Pkwy* N Fulton/Forsyth County 42,366 2nd Siemens Corporation N/A JLL

24 3500 Lenox Rd NE - One Alliance Center Upper Buckhead 42,000 3rd AIG CBRE Highwoods Properties

25 3340 Peachtree Rd NE Upper Buckhead 41,698 2nd Terminus Cushman & Wake�eld Cushman & Wake�eld

26 675 Ponce de Leon Ave NE Midtown/Pershing Point 41,288 3rd Instacart Site Selection, Inc. Avison Young

27 4 Concourse Pky NE Central Perimeter 40,896 2nd Elavon JLL CBRE

28 250 East Ponce Decatur 40,320 1st N/A Oakhurst Capital Avison Young

29 2839 Paces Ferry Rd SE - Overlook II Cumberland/Galleria 40,104 2nd Arcadis N/A Cushman & Wake�eld

30 1100 Johnson Ferry Rd NE* Central Perimeter 39,846 2nd Prelude Fertility Management Savills Studley Direct Deal

31 2736 Meadow Church Rd* Duluth/Suwanee/Buford 38,726 2nd Cypress Care JLL Bridge Commercial Real Estate

32 2635 Century Pky NE Chamblee/Dville/N D Hills 37,726 1st Bureau of ATF Direct Deal Highwoods Properties

33 210 Interstate N Pky SE* Cumberland/Galleria 37,595 1st QBE First N/A Cushman & Wake�eld

34 380 Interstate N Pky SE* Cumberland/Galleria 33,123 2nd First Investors Financial Services Group N/A N/A

35 101 Marietta St NW - Centennial Tower* Downtown Atlanta 32,543 2nd Atlanta Hawks CBRE CBRE

36 3035 Peachtree Rd - Buckhead Atlanta Upper Buckhead 31,957 1st Regus N/A Colliers International

37 715 Peachtree St NE Midtown/Pershing Point 31,235 2nd Gather N/A CBRE

38 600 Galleria Pky SE Cumberland/Galleria 31,202 1st Moore Colson Newmark Knight Frank Childress Klein

39 3100 Breckinridge Blvd Building 200 Duluth/Suwanee/Buford 30,987 2nd TTEC N/A Lincoln Property Company

40 310 Technology Pky Norcross/P’tree Corners 30,907 2nd Vallen N/A Atlanta O�ce Realty, Inc.

Source: CoStar Property® * Renewal

18 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 19 Atlanta � Third Quarter 2018 Third Quarter 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 3q 2016 3q 2017 3q

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 July 2017 - June 2018

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

$1,600 < 50,000 SF 229 3,619,850 $565,292,316 $ 156.16 8.23% $200 $1,400

$1,200

Price/SF 50K-249K $150 58 6,216,148 $869,552,448 $ 139.89 7.92% $1,000 SF

$800 $100 $600 250K-499K 10 3,995,461 $950,350,458 $ 237.86 7.42%

Millions of Sales Volume Dollars SF $400 $50

$200

$0 $0 >500K SF 6 4,386,541 $1,031,341,991 $ 235.12 6.23% 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 � Third Quarter 2018 Third Quarter 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

Source: CoStar Property®

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

Direct SF Sublet SF $34.50 3.50

$34.00 3.00

$33.50 2.50

$33.00 2.00

$32.50 1.50 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 3q 420 23,806,549 3,157,217 13.3% (8,229) 0 0 1 49,200 $33.96 2018 2q 420 23,806,549 3,148,988 13.2% (31,978) 0 0 0 0 $33.04 2018 1q 419 23,692,305 3,002,766 12.7% 164,035 0 0 1 114,244 $32.72 2017 4q 419 23,692,305 3,166,801 13.4% 85,134 1 20,000 1 114,244 $32.19 2017 3q 418 23,672,305 3,231,935 13.7% (113,865) 0 0 2 134,244 $33.04 2017 2q 418 23,672,305 3,118,070 13.2% 10,204 3 664,323 2 134,244 $32.96 2017 1q 414 22,935,218 2,391,187 10.4% 46,684 0 0 6 871,331 $32.47 2016 4q 415 23,007,158 2,509,811 10.9% (56,484) 1 48,588 5 757,087 $32.02 2016 3q 414 22,958,570 2,404,739 10.5% 134,106 1 52,811 6 805,675 $31.67 2016 2q 414 22,907,859 2,488,134 10.9% 20,376 0 0 5 733,601 $31.25 2016 1q 421 23,002,862 2,603,513 11.3% (28,885) 1 40,118 4 660,837 $30.86 2015 4q 420 22,962,744 2,534,510 11.0% 82,233 0 0 2 546,765 $30.46 2015 3q 420 22,962,744 2,616,743 11.4% 184,733 0 0 2 546,765 $29.83 2015 2q 423 22,993,512 2,832,244 12.3% 169,189 0 0 2 546,765 $28.70 2015 1q 423 22,993,512 3,001,433 13.1% 96,747 0 0 1 506,647 $28.14 2014 4q 423 22,993,512 3,098,180 13.5% 393,696 1 125,000 1 506,647 $27.27

Source: CoStar Property®

20 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 21 Atlanta – Third Quarter 2018 Third Quarter 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 14.0%

13.5% 0.600

13.0% Vacant Percent 0.400

12.5% 0.200

Millions SF 12.0%

0.000 11.5%

(0.200) 11.0%

(0.400) 10.5% 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

Source: CoStar Property®

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

Direct SF Sublet SF $28.00 6.00

$27.50 5.00

$27.00 4.00

$26.50 3.00 Millions SF 2.00 Dollars/SF/Year $26.00

1.00 $25.50

0.00 $25.00 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 3q 686 34,609,265 4,767,298 13.8% (9,782) 0 0 2 1,005,000 $27.47 2018 2q 686 34,609,265 4,757,516 13.7% 75,496 1 200,000 1 670,000 $27.31 2018 1q 685 34,409,265 4,633,012 13.5% 145,399 1 355,250 2 870,000 $27.21 2017 4q 684 34,054,015 4,423,161 13.0% (23,590) 0 0 3 1,225,250 $26.51 2017 3q 683 34,033,299 4,378,855 12.9% (29,224) 0 0 4 1,245,966 $26.44 2017 2q 683 34,033,299 4,349,631 12.8% (35,248) 1 15,402 4 1,245,966 $26.81 2017 1q 683 34,040,741 4,321,825 12.7% 13,510 0 0 5 1,261,368 $25.96 2016 4q 685 34,349,027 4,643,621 13.5% 107,396 1 590,926 4 591,368 $25.99 2016 3q 684 33,758,101 4,160,091 12.3% (178,977) 1 23,000 4 982,294 $25.68 2016 2q 683 33,735,101 3,958,114 11.7% (49,277) 0 0 4 984,578 $24.82 2016 1q 688 33,854,361 4,028,097 11.9% (50,477) 0 0 4 984,578 $24.26 2015 4q 695 33,974,031 4,097,290 12.1% 147,935 0 0 4 984,578 $23.45 2015 3q 696 33,991,415 4,262,609 12.5% 12,491 0 0 3 629,328 $23.15 2015 2q 697 33,995,956 4,279,641 12.6% 743,048 1 578,000 3 629,328 $22.78 2015 1q 701 33,507,851 4,534,584 13.5% (98,532) 0 0 3 1,184,328 $22.61 2014 4q 702 33,509,649 4,437,850 13.2% 118,265 0 0 2 1,168,926 $21.93

Source: CoStar Property®

22 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 23 Atlanta – Third Quarter 2018 Third Quarter 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 0.300 14.0%

12.0% 0.200

10.0% Vacant Percent 0.100

8.0% 0.000

Millions SF 6.0%

(0.100) 4.0%

(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

Source: CoStar Property®

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

Direct SF Sublet SF $26.00 4.50

4.00 $25.50

3.50 $25.00 3.00 $24.50 2.50

2.00 $24.00 Millions SF 1.50 Dollars/SF/Year $23.50 1.00 $23.00 0.50

0.00 $22.50 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 3q 398 36,292,166 3,476,750 9.6% 248,942 1 61,000 3 70,300 $25.79 2018 2q 397 36,231,166 3,664,692 10.1% 116,153 0 0 4 131,300 $25.67 2018 1q 397 36,231,166 3,780,845 10.4% 191,322 0 0 4 131,300 $25.50 2017 4q 397 36,231,166 3,972,167 11.0% 29,863 0 0 4 131,300 $25.11 2017 3q 397 36,231,166 4,002,030 11.0% 154,177 0 0 4 131,300 $24.68 2017 2q 397 36,231,166 4,156,207 11.5% (72,119) 0 0 4 131,300 $23.98 2017 1q 397 36,231,166 4,084,088 11.3% 96,812 0 0 1 61,000 $23.62 2016 4q 398 36,370,472 4,320,206 11.9% 160,013 0 0 1 61,000 $24.15 2016 3q 398 36,370,472 4,480,219 12.3% 39,737 0 0 1 61,000 $23.36 2016 2q 398 36,370,472 4,519,956 12.4% 30,998 0 0 1 61,000 $22.69 2016 1q 398 36,370,472 4,550,954 12.5% (156,612) 0 0 0 0 $22.36 2015 4q 398 36,370,472 4,394,342 12.1% 122,761 0 0 0 0 $21.74 2015 3q 398 36,370,472 4,517,103 12.4% 38,461 0 0 0 0 $21.69 2015 2q 398 36,370,472 4,555,564 12.5% (73,599) 0 0 0 0 $21.49 2015 1q 397 36,365,739 4,477,232 12.3% (218,753) 0 0 1 4,733 $21.19 2014 4q 397 36,365,739 4,258,479 11.7% (7,273) 0 0 1 4,733 $21.01

Source: CoStar Property®

22 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 23 Atlanta – Third Quarter 2018 Third Quarter 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

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 3q 567 4,634,720 303,504 6.5% 13,660 0 0 0 0 $18.22 2018 2q 567 4,634,720 317,164 6.8% 27,810 0 0 0 0 $17.54 2018 1q 567 4,634,720 344,974 7.4% (13,844) 0 0 0 0 $18.01 2017 4q 567 4,634,720 331,130 7.1% 1,575 0 0 0 0 $17.87 2017 3q 567 4,634,720 332,705 7.2% 29,686 1 21,553 0 0 $17.83 2017 2q 566 4,613,167 340,838 7.4% 26,526 0 0 1 21,553 $17.11 2017 1q 566 4,613,167 367,364 8.0% 20,733 0 0 1 21,553 $17.53 2016 4q 566 4,613,167 388,097 8.4% (3,698) 0 0 1 21,553 $17.65 2016 3q 565 4,589,167 360,399 7.9% 20,920 0 0 2 45,553 $17.96 2016 2q 565 4,589,167 381,319 8.3% 46,348 2 52,149 2 45,553 $17.40 2016 1q 564 4,540,018 378,518 8.3% 24,279 0 0 3 76,149 $17.86 2015 4q 564 4,540,018 402,797 8.9% 63,209 0 0 2 67,099 $17.84 2015 3q 563 4,532,581 458,569 10.1% (8,890) 1 8,500 2 50,536 $18.07 2015 2q 562 4,524,081 441,179 9.8% (414) 0 0 2 15,937 $17.32 2015 1q 562 4,524,081 440,765 9.7% (2,082) 0 0 2 15,937 $17.68 2014 4q 562 4,524,081 438,683 9.7% 133,325 0 0 0 0 $17.62

Source: CoStar Property®

24 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 25 Atlanta – Third Quarter 2018 Third Quarter 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 6.0%

0.015 5.0% 0.010 Percent Vacant Percent 0.005 4.0%

0.000 3.0%

Millions SF (0.005)

(0.010) 2.0%

(0.015) 1.0% (0.020)

(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

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 3q 82 677,611 4,912 0.7% 650 0 0 0 0 $5.62 2018 2q 82 677,611 5,562 0.8% 2,500 1 5,500 0 0 $5.28 2018 1q 81 672,111 2,562 0.4% 0 0 0 1 5,500 $2.93 2017 4q 81 672,111 2,562 0.4% 4,000 0 0 1 5,500 $4.67 2017 3q 81 672,111 6,562 1.0% 11,636 0 0 0 0 $4.83 2017 2q 81 672,111 18,198 2.7% 17,031 0 0 0 0 $5.10 2017 1q 81 672,111 35,229 5.2% (5,111) 0 0 0 0 $4.08 2016 4q 81 672,111 30,118 4.5% 947 0 0 0 0 $3.73 2016 3q 81 672,111 31,065 4.6% (20,437) 1 4,500 0 0 $3.72 2016 2q 80 667,611 6,128 0.9% 2,272 0 0 1 4,500 $3.10 2016 1q 80 667,611 8,400 1.3% (600) 0 0 1 4,500 $2.95 2015 4q 80 667,611 7,800 1.2% 1,200 0 0 1 4,500 $2.91 2015 3q 80 667,611 9,000 1.3% 6,500 0 0 0 0 $3.04 2015 2q 80 667,611 15,500 2.3% 4,200 0 0 0 0 $3.43 2015 1q 80 667,611 19,700 3.0% 8,255 0 0 0 0 $3.64 2014 4q 80 667,611 27,955 4.2% 4,200 0 0 0 0 $3.95

Source: CoStar Property®

24 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 25 Atlanta – Third Quarter 2018 Third Quarter 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

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 3q 437 25,995,900 2,198,058 8.5% 8,125 0 0 8 2,181,540 $35.71 2018 2q 437 25,995,900 2,206,183 8.5% (217,184) 0 0 8 2,181,540 $35.05 2018 1q 438 25,999,400 1,992,499 7.7% 510,884 2 505,149 7 1,951,540 $34.06 2017 4q 436 25,494,251 1,998,234 7.8% 82,833 2 127,000 8 2,104,689 $32.36 2017 3q 434 25,367,251 1,954,067 7.7% 17,174 0 0 7 1,931,602 $30.67 2017 2q 434 25,367,251 1,971,241 7.8% 263,877 1 17,000 7 1,931,602 $28.95 2017 1q 433 25,350,251 2,218,118 8.7% 30,248 0 0 8 1,948,602 $27.92 2016 4q 434 25,357,151 2,255,266 8.9% 134,611 2 91,873 6 1,573,671 $27.34 2016 3q 433 25,317,184 2,349,910 9.3% 174,615 1 33,313 6 888,544 $27.28 2016 2q 433 25,289,871 2,497,212 9.9% 103,191 0 0 7 921,857 $27.39 2016 1q 434 25,293,447 2,603,979 10.3% 235,500 0 0 4 610,186 $26.74 2015 4q 434 25,293,447 2,839,479 11.2% 168,444 0 0 0 0 $26.08 2015 3q 434 25,293,447 3,007,923 11.9% 165,876 1 81,629 0 0 $26.29 2015 2q 433 25,211,818 3,092,170 12.3% 228,888 0 0 1 81,629 $24.85 2015 1q 436 25,275,338 3,384,578 13.4% 138,365 0 0 1 81,629 $24.63 2014 4q 436 25,275,338 3,522,943 13.9% 209,222 0 0 1 81,629 $24.60

Source: CoStar Property®

26 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 27 Atlanta – Third Quarter 2018 Third Quarter 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

Source: CoStar Property®

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

Direct SF Sublet SF $23.00 4.60 $22.80

4.40 $22.60

$22.40 4.20 $22.20 4.00 $22.00 Millions SF 3.80 Dollars/SF/Year $21.80 $21.60 3.60 $21.40

3.40 $21.20 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 3q 1,908 37,596,874 4,372,102 11.6% (307,564) 2 19,000 13 873,202 $22.90 2018 2q 1,906 37,577,874 4,045,538 10.8% 39,770 2 61,042 12 438,211 $22.49 2018 1q 1,904 37,516,832 4,024,266 10.7% 143,476 8 271,575 13 489,253 $22.16 2017 4q 1,896 37,245,257 3,896,167 10.5% 180,241 0 0 19 745,328 $22.01 2017 3q 1,896 37,245,257 4,076,408 10.9% 172,145 3 104,460 18 721,358 $21.85 2017 2q 1,891 37,129,219 4,137,533 11.1% 132,182 5 284,360 22 832,378 $21.83 2017 1q 1,886 36,844,859 3,985,355 10.8% (95,677) 1 6,600 20 814,614 $21.90 2016 4q 1,885 36,838,259 3,883,078 10.5% 154,080 1 28,000 12 672,608 $21.81 2016 3q 1,883 36,800,964 3,999,863 10.9% (221,481) 0 0 10 462,892 $21.80 2016 2q 1,885 36,806,468 3,783,886 10.3% 5,228 2 24,000 8 449,472 $20.50 2016 1q 1,883 36,782,468 3,765,114 10.2% 116,136 2 24,356 5 287,142 $20.31 2015 4q 1,881 36,758,112 3,856,894 10.5% 77,087 1 52,000 4 48,356 $19.52 2015 3q 1,880 36,706,112 3,881,981 10.6% 431,617 0 0 5 100,356 $19.10 2015 2q 1,880 36,706,112 4,313,598 11.8% 204,211 1 8,000 2 69,689 $18.50 2015 1q 1,879 36,698,112 4,509,809 12.3% 366,458 2 14,670 2 60,000 $18.23 2014 4q 1,878 36,684,542 4,862,697 13.3% 315,228 2 106,298 3 22,670 $18.35

Source: CoStar Property®

26 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 27 Atlanta – Third Quarter 2018 Third Quarter 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 17.5%

0.300 17.0%

0.200

16.5% Vacant Percent

0.100 16.0% 0.000

Millions SF 15.5% (0.100) 15.0% (0.200)

(0.300) 14.5%

(0.400) 14.0% 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

Source: CoStar Property®

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

Direct SF Sublet SF $18.40 6.00 $18.20

5.80 $18.00

$17.80 5.60 $17.60

$17.40 5.40 $17.20 Millions SF 5.20 Dollars/SF/Year $17.00

$16.80 5.00 $16.60

4.80 $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 3q 2,891 36,215,976 5,867,328 16.2% (43,976) 1 27,944 8 96,760 $18.23 2018 2q 2,889 36,185,562 5,792,938 16.0% (70,727) 0 0 9 119,174 $17.85 2018 1q 2,888 36,183,092 5,719,741 15.8% (234,979) 3 28,002 9 106,644 $17.45 2017 4q 2,885 36,155,090 5,456,760 15.1% 164,839 1 40,000 9 96,886 $17.23 2017 3q 2,883 36,106,268 5,572,777 15.4% 71,088 1 2,400 8 127,238 $17.12 2017 2q 2,882 36,103,868 5,641,465 15.6% 9,637 0 0 7 118,768 $17.07 2017 1q 2,881 36,098,914 5,646,148 15.6% 84,829 4 107,944 6 82,176 $17.04 2016 4q 2,878 35,996,637 5,628,700 15.6% 302,183 3 46,040 9 181,298 $16.90 2016 3q 2,875 35,950,597 5,884,843 16.4% 3,694 1 5,680 11 224,938 $16.70 2016 2q 2,877 36,006,251 5,944,191 16.5% 180,196 0 0 10 205,664 $16.41 2016 1q 2,877 36,006,251 6,124,387 17.0% (285,101) 0 0 6 114,664 $16.45 2015 4q 2,877 36,006,251 5,839,286 16.2% 160,643 0 0 5 108,984 $16.44 2015 3q 2,877 36,006,251 5,999,929 16.7% (59,103) 2 9,706 3 69,040 $16.15 2015 2q 2,877 35,999,391 5,933,966 16.5% 148,463 1 6,214 3 21,706 $15.87 2015 1q 2,876 35,993,177 6,076,215 16.9% 99,234 3 38,800 3 15,920 $15.90 2014 4q 2,873 35,954,377 6,136,649 17.1% 9,826 0 0 5 49,040 $15.95

Source: CoStar Property®

28 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 29 Atlanta – Third Quarter 2018 Third Quarter 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 0.800 14.0%

0.700 12.0% 0.600

0.500 10.0% Vacant Percent

0.400 8.0% 0.300

Millions SF 6.0% 0.200

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

Source: CoStar Property®

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

Direct SF Sublet SF $20.00 2.85

$19.50 2.80 $19.00

2.75 $18.50

$18.00 2.70 Millions SF Dollars/SF/Year $17.50

2.65 $17.00

2.60 $16.50 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 3q 2,336 31,021,341 2,747,458 8.9% (2,712) 0 0 2 61,500 $19.62 2018 2q 2,336 31,021,341 2,744,746 8.8% 191,002 3 110,000 1 13,500 $19.20 2018 1q 2,333 30,911,341 2,825,748 9.1% (43,654) 0 0 3 110,000 $19.01 2017 4q 2,333 30,911,341 2,782,094 9.0% 48,990 0 0 3 110,000 $19.41 2017 3q 2,333 30,911,341 2,831,084 9.2% 71,711 2 196,066 3 110,000 $18.85 2017 2q 2,331 30,715,275 2,706,729 8.8% 24,599 1 7,500 5 306,066 $18.57 2017 1q 2,330 30,707,775 2,723,828 8.9% (49,215) 0 0 4 233,566 $17.60 2016 4q 2,330 30,707,775 2,674,613 8.7% (70,008) 0 0 3 188,566 $17.40 2016 3q 2,329 30,692,025 2,588,855 8.4% (14,110) 0 0 4 204,316 $17.18 2016 2q 2,328 30,679,240 2,561,960 8.4% 44,382 0 0 4 209,601 $17.13 2016 1q 2,329 30,692,365 2,619,467 8.5% 20,519 2 15,744 3 179,601 $17.15 2015 4q 2,327 30,676,621 2,624,242 8.6% 145,395 1 28,800 2 15,744 $17.31 2015 3q 2,329 30,688,321 2,781,337 9.1% 716,806 1 40,000 3 44,544 $17.11 2015 2q 2,329 30,674,273 3,484,095 11.4% 109,409 1 35,189 4 84,544 $17.24 2015 1q 2,328 30,639,084 3,558,315 11.6% 83,039 0 0 3 84,616 $16.93 2014 4q 2,329 30,777,614 3,779,884 12.3% (112,593) 0 0 1 35,189 $16.93

Source: CoStar Property®

28 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 29 Atlanta – Third Quarter 2018 Third Quarter 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

Source: CoStar Property®

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

Direct SF Sublet SF $24.00 6.40 $23.50

6.20 $23.00

$22.50 6.00 $22.00 5.80 $21.50 Millions SF 5.60 Dollars/SF/Year $21.00 $20.50 5.40 $20.00

5.20 $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 3q 3,245 51,363,474 6,150,229 12.0% 128,371 0 0 4 376,841 $23.50 2018 2q 3,245 51,363,474 6,278,600 12.2% 126,836 2 227,800 2 7,841 $22.72 2018 1q 3,243 51,135,674 6,177,636 12.1% 11,515 1 36,000 2 227,800 $22.50 2017 4q 3,242 51,099,674 6,153,151 12.0% 237,056 2 318,960 3 263,800 $21.77 2017 3q 3,239 50,777,770 6,071,247 12.0% 21,543 3 19,500 4 576,960 $21.54 2017 2q 3,231 50,522,218 5,837,238 11.6% 485,291 3 395,000 12 832,512 $21.45 2017 1q 3,229 50,134,018 5,934,329 11.8% (173,652) 1 9,933 14 1,218,512 $21.05 2016 4q 3,229 50,131,417 5,758,076 11.5% 45,452 3 131,500 10 1,157,212 $20.53 2016 3q 3,226 49,999,917 5,672,028 11.3% 308,494 2 180,000 10 1,248,811 $20.62 2016 2q 3,226 49,898,127 5,878,732 11.8% 217,788 0 0 12 1,424,311 $20.36 2016 1q 3,225 49,878,851 6,077,244 12.2% (89,257) 1 16,000 10 981,110 $20.14 2015 4q 3,225 49,878,433 5,987,569 12.0% 141,377 1 8,090 8 545,110 $19.50 2015 3q 3,226 49,911,169 6,161,682 12.3% 599,510 1 4,000 6 496,200 $19.39 2015 2q 3,223 49,900,807 6,750,830 13.5% 349,607 0 0 4 160,362 $18.82 2015 1q 3,225 49,926,079 7,125,709 14.3% 183,095 1 5,636 3 10,362 $18.42 2014 4q 3,224 49,920,443 7,303,168 14.6% 32,847 0 0 2 10,636 $18.26

Source: CoStar Property®

30 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 31 Atlanta – Third Quarter 2018 Third Quarter 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 12.5%

0.200 12.0% 0.150

11.5% Vacant Percent 0.100

0.050 11.0%

Millions SF 0.000 10.5%

(0.050) 10.0% (0.100) 9.5% (0.150)

(0.200) 9.0% 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

Source: CoStar Property®

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

Direct SF Sublet SF $19.00 2.75 $18.50 2.70

2.65 $18.00

2.60 $17.50

2.55 $17.00 2.50 $16.50 Millions SF 2.45 Dollars/SF/Year $16.00 2.40 $15.50 2.35

2.30 $15.00 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 3q 2,610 25,256,399 2,562,770 10.1% 67,975 1 40,000 4 148,872 $18.08 2018 2q 2,609 25,216,399 2,590,745 10.3% 15,539 0 0 5 188,872 $18.43 2018 1q 2,608 25,210,399 2,606,284 10.3% 22,992 4 39,282 4 137,600 $17.62 2017 4q 2,604 25,239,717 2,660,994 10.5% 59,407 1 30,195 7 146,882 $17.18 2017 3q 2,604 25,234,522 2,715,206 10.8% (135,002) 1 10,000 8 177,077 $16.69 2017 2q 2,603 25,224,522 2,570,204 10.2% 163,084 3 74,500 6 121,195 $16.62 2017 1q 2,600 25,150,022 2,658,788 10.6% 31,139 2 31,026 6 144,695 $16.44 2016 4q 2,598 25,118,996 2,658,901 10.6% 34,179 0 0 7 145,721 $16.24 2016 3q 2,598 25,118,996 2,693,080 10.7% (8,201) 0 0 4 85,526 $16.20 2016 2q 2,598 25,118,996 2,684,879 10.7% 70,570 0 0 2 15,526 $16.05 2016 1q 2,599 25,127,396 2,763,849 11.0% (42,222) 0 0 0 0 $16.00 2015 4q 2,599 25,127,396 2,721,627 10.8% 147,515 0 0 0 0 $16.14 2015 3q 2,599 25,127,396 2,869,142 11.4% 101,445 1 10,546 0 0 $16.03 2015 2q 2,599 25,104,706 2,947,897 11.7% 107,306 0 0 2 35,546 $16.37 2015 1q 2,599 25,104,706 3,055,203 12.2% 165,748 1 200,000 2 35,546 $16.19 2014 4q 2,599 24,909,706 3,025,951 12.1% 139,984 1 40,000 3 235,546 $16.31

Source: CoStar Property®

30 CoStar Office Statistics ©2018 CoStar Group, Inc. ©2018 CoStar Group, Inc. CoStar Office Statistics 31 Atlanta – Third Quarter 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 0.100 15.0%

0.080 14.5% 0.060 14.0% 0.040 Vacant Percent 13.5% 0.020

0.000 13.0% Millions SF (0.020) 12.5% (0.040) 12.0% (0.060) 11.5% (0.080)

(0.100) 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

Source: CoStar Property®

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

Direct SF Sublet SF $19.50 0.92 $19.00 0.90 $18.50 $18.00 0.88 $17.50 0.86 $17.00 $16.50 0.84 $16.00 Millions SF Dollars/SF/Year 0.82 $15.50 $15.00 0.80 $14.50

0.78 $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 3q 904 6,249,844 831,685 13.3% 24,265 1 6,440 1 37,610 $16.57 2018 2q 903 6,243,404 849,510 13.6% 10,016 1 4,718 2 44,050 $15.93 2018 1q 902 6,238,686 854,808 13.7% (24,006) 0 0 2 11,158 $15.85 2017 4q 902 6,238,686 830,802 13.3% 23,708 1 5,180 2 11,158 $18.84 2017 3q 900 6,221,796 837,620 13.5% 29,593 0 0 2 16,890 $18.72 2017 2q 900 6,221,796 867,213 13.9% 33,286 0 0 2 16,890 $18.87 2017 1q 899 6,220,796 899,499 14.5% (48,817) 0 0 3 17,890 $18.86 2016 4q 899 6,220,796 850,682 13.7% 40,901 1 12,722 3 17,890 $18.59 2016 3q 898 6,208,074 878,861 14.2% (49,192) 0 0 2 13,722 $18.34 2016 2q 898 6,208,074 829,669 13.4% 7,403 0 0 1 12,722 $15.45 2016 1q 898 6,208,074 837,072 13.5% (77,292) 0 0 1 12,722 $15.26 2015 4q 898 6,208,074 759,780 12.2% 33,039 0 0 1 12,722 $14.67 2015 3q 898 6,208,074 792,819 12.8% 18,900 0 0 0 0 $14.41 2015 2q 898 6,208,074 811,719 13.1% 36,810 0 0 0 0 $14.30 2015 1q 899 6,217,226 857,681 13.8% 74,228 0 0 0 0 $14.61 2014 4q 899 6,217,226 931,909 15.0% 93,493 1 7,066 0 0 $14.31

Source: CoStar Property®