Offi ce Submarket Report | MIDTOWN Q1 2018

Key Takeaways Market Indicators Midtown Midtown > Thanks to NCR’s relocation to the its new headquarters, Midtown Relative to prior period Q1 2018 Q2 2018* led the Atlanta offi ce market in offi ce space absorption in the fi rst VACANCY quarter. Almost 500,000 square feet of space was occupied in Q1. NET ABSORPTION > Midtown rents continue to post strong growth. Quarter-over- quarter the average asking rate increased 5.1%. The submarket CONSTRUCTION remains the priciest location to rent offi ce space in Atlanta. RENTAL RATE > Even with NCR’s HQ delivery, the submarket continues to have the highest amount of offi ce space under construction. Anthem’s *Projected new technology center of 352,00 square feet broke ground in the fi rst quarter. > Looking ahead, a number of projects have been announced for Summary Statistics All Midtown Offi ce Market Classes Class A Class B Midtown. Only two are likely to begin as speculative projects though. Total Inventory > Strong fundamentals continue to dominate the Midtown landscape. (Millions Square Feet) 23.4 16.9 5.6 Offi ce leasing remains steady in the submarket, and supply is in check. Absorption is expected to reach the +100,000 square foot Vacancy Rate 8.6% 9.1% 7.4% market in Q2. Change From Q4 2017 -0.1% -0.3% 0.1% Absorption, Deliveries and Vacancy Absorption YTD 600,000 10% 499 493 17 (Thousands Square Feet) 500,000 9% Construction Deliveries YTD 505 485 20 400,000 (Thousands Square Feet) 8% Square Feet 300,000 Under Construction 2.1 2.0 0.1 200,000 7% (Millions Square Feet) 100,000 6% Asking Rents 0 Per Square Foot Per Year (100,000) 1Q17 2Q17 3Q17 4Q17 1Q18 5% Average Quoted $34.65 $36.66 $26.93 Absorption Deliveries Vacancy Change From Q4 2017 5.1% 4.7% 4.9% UPDATE - Recent Transactions in the Market Notable Leasing Activity

TENANT PROPERTY LANDLORD SIZE (SF) TYPE

WeWork Coda Portman Holdings 51,719 Class A Lease Bain & Co. Hines 26,002 Class A Lease Protiviti Regions Plaza PGIM, Inc. 21,570 Class A Lease Square, Inc. 271 17th Street Lionstone Investments 16,060 Class A Lease Notable Sales Activity

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

1375 Peachtree 3/2/2018 $75,000,000 409,579 $183.11 The Dilweg Co. Ellsworth Lofts 12/20/2017 $22,900,000 90,207 $253.86 Origin Investments 1389-1409 Peachtree St. 12/21/2017 $18,900,000 153,203 $122.06 Parkside Partners 712 W Peachtree St. 11/20/2017 $9,050,000 14,738 $614.06 Portman Holdings

Sources: CoStar Property, Colliers Research Skyline Review

Space Available Direct Sublet

50

45

40

35

30

Floors 25

20

15

10

5

BUILDING One Atlantic 1180 Peachtree 1075 Peachtree Promenade Center RBA 1,100,312 SF 670,443 SF 762,804 SF 774,535 SF 553,778 SF TYPICAL FLOOR SIZE 23,500 SF 22,130 SF 20,021 SF 24,630 SF 22,575 SF % LEASED 92.9% 94.7% 92.3% 95.7% 92.2% LARGEST SPACE AVAIL. 44,403 SF 34,714 SF 15,795 SF 90,646 SF 22,575 SF RENTAL RATE PER SF (Gross) $39.50-$41.50 $43.50-$44.50 $40.00-$42.00 $39.00-$40.50 $34.00 12345

7 10 3 5 8 5 3 2 6 9 6 8 4 11

1 2 9 10 12 3 1

4

1 2 4 7

2 Offi ce Submarket Report | Q1 2018 | Midtown | Colliers International - Atlanta Active Projects

1

Source: CoStar Property

14TH & SPRING 250,000 SF Offi ce Construction Pending Developer: Greenstone Properties 2

CODA-771 SPRING 760,000 SF Offi ce Space 80,000 SF Data Center 40,000 SF Retail 271 17th Street The Proscenium Regions Plaza Campanile Under Construction 621,946 SF 541,789 SF 533,135 SF 502,846 SF 469,280 SF Developers: Portman Holdings

22,995 SF 26,252 SF 25,000 SF 20,816 SF 23,857 SF 3

85.4% 91.9% 96.6% 94.5% 43.9%

42,834 SF 13,095 SF 64,954 SF 31,078 SF 268,661 SF

$35.00-$38.00 $40.00-$42