Offi ce Submarket Report | MIDTOWN Q3 2020

Key Takeaways Market Indicators Midtown Midtown > Midtown saw more space vacated than fi lled in the third quarter, Relative to prior period Q3 2020 Q4 2020* resulting in an occupancy loss of just under 50,000 square feet. VACANCY This is the fi rst negative quarter for the submarket since the beginning of 2019. NET ABSORPTION - > The slightly negative quarter was a result of some anticipated CONSTRUCTION - occupancies for Q3 being pushed back to the fi nal quarter of the year. RENTAL RATE > The submarket remains a destination of choice for many large companies seeking space. Following the announcement of *Projected Microsoft signing at Atlantic Yards last quarter, Mailchimp recently announced it would be relocating and expanding into 300,000 square feet at a new offi ce building on the eastside of the Summary Statistics All submarket near its current space at . Midtown Offi ce Market Classes Class A Class B > Despite the continued demand for space here, Midtown’s average Total Inventory (Millions Square Feet) 26.8 20.9 4.9 rental rate fell for the fi rst time in three years. This is mostly from lower class product rents declining. Vacancy Rate 11.9% 12.8% 8.5% > Midtown is expected to see strong occupancy gains in Q4. Change From Q2 2020 0.2% 0.1% 0.4% Absorption, Deliveries and Vacancy Absorption YTD 633 848 -182 800,000 14% (Thousands Square Feet) 13% Construction Deliveries YTD 600,000 439 439 - 12% (Millions Square Feet) 11% 400,000Square Feet Under Construction 10% 4.4 4.4 - (Millions Square Feet) 200,000 9% 8% 0 Asking Rents 7% Per Square Foot Per Year 3Q19 4Q19 1Q20 2Q20 3Q20 (200,000) 6% Average Quoted $40.63 $41.70 $27.10 Absorption Deliveries Vacancy Change From Q2 2020 -0.2% 1.3% -4.3% UPDATE - Recent Transactions in the Market Notable Leasing Activity

TENANT PROPERTY LANDLORD SIZE (SF) TYPE

Mailchimp 760 Ralph McGill Blvd. New City LLC 300,000 Class A Prelease Seyfarth Shaw 1075 Peachtree NY State Retirement 83,694 Class A Renewal DLA Piper Core Property Capital 46,195 Class A Renewal GT Research Institute Atlanta Technology Ctr - 200 Tech Foundation RE 33,492 Class B Renewal Notable Sales Activity

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

Brickworks Atlanta 1/27/2020 $80,000,000 194,000 $412.37 Asana Partners Stockyards Atlanta 1/16/2020 $69,700,000 166,253 $419.24 Clarion Partners 1072 West Peachtree 7/17/2020 $25,000,000 30,000 $833.33 Rockefeller Group 1440 Dutch Valley Pl. 11/4/2020 $13,500,000 58,090 $232.40 Asana Partners

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 1075 Peachtree Promenade Center RBA 1,100,022 SF 690,835 SF 762,804 SF 774,610 SF 553,778 SF TYPICAL FLOOR SIZE 23,500 SF 22,130 SF 26,000 SF 24,630 SF 22,575 SF % LEASED 94.6% 94.1% 95.1% 92.2% 90% LARGEST SPACE AVAIL. 23,137 SF 34,656 SF 27,898 SF 207,587 SF 44,288 SF RENTAL RATE PER SF (Gross) $44.50-$45.50 $46.00 $45.00-$52.00 $41.00-$44.00 $41.00-$42.00 12345

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

1 2 1 9 4 10 12 3 3

4

1 5 2 7

2 Offi ce Submarket Report | Q3 2020 | Midtown | Colliers International - Atlanta Active Projects

1

Source: CoStar Property

NORFOLK SOUTHERN HQ 750,000 SF Offi ce Under Construction Developer: Cousins Properties 2

1105 W. PEACHTREE 679,153 SF Offi ce Space Under Construction Developer: Selig Enterprises 3 999 Peachtree 271 17th Street The Proscenium Regions Plaza Campanile

621,946 SF 541,789 SF 533,135 SF 502,846 SF 650,799 SF

22,995 SF 26,252 SF 25,000 SF 20,816 SF 29,400 SF

86.8% 90.3% 92.7% 96.1% 53.9% 14TH & SPRING 23,170 SF 92,343 SF 25,393 SF 36,686 SF 414,484 SF 312,705 SF Offi ce Under Construction $39.00-$43.00 $45.00 $44.00 $38.00-$42.00 $38.00-$42.00 Developer: Greenstone Properties 6789104 Aerial Legend Points of Interest

1 Georgia Tech 7 612,947 SF Offi ce 2 8 Federal Reserve Under Construction Buildings by Number Developer: Granite Properties (see opposite page) Center for 3 9 Puppetry Arts House & Museum 5 MARTA Rail Line Savannah College Technology 4 10 New Construction of Art & Design Square

5 Ansley Park 11 The Fox Theater ATLANTIC YARDS 523,511 SF Offi ce Brick-and-Mortar Loft-Offi ce Woodruff Arts 6 12 Under Construction Center Developer: Hines

3 Offi ce Submarket Report | Q3 2020 | Midtown | Colliers International - Atlanta In The News FOR MORE INFORMATION > Atlanta marketing giant Mailchimp leaving Ponce City Market for new $1 billion Beltline project: Mailchimp has announced it will be relocating from Ponce City Market to anchor a new 475,000 Scott Amoson square-foot building just down the street. The marketing giant plans to lease 300,000 square VP, Director of Research | Atlanta feet in the new building at 760 Ralph McGill Blvd., to be developed by New City LLC. The +1 404 877 9286 company wanted to remain in the same area, but ran out of space to expand at Ponce City Market. [email protected] 760 Ralph McGill is slated to begin construction some time in 2021. It is part of a $1 billion development rising along the Eastside Trail of the Beltline, right down the way from Ponce City Market. Mailchimp plans to take occupancy of its space once the building is complete in 2022. COLLIERS INTERNATIONAL > Ponce City Market expansion includes new offi ce building, hospitality tower, larger food hall: ATLANTA OFFICE SPECIALISTS Jamestown Properties is planning an expansion of the 2.1 million square-foot Ponce City Market Allison Bittel Mark Maggard building it owns. As a part of this expansion, a new hospitality tower will be constructed on the Frank Cannon Paul Reese westside of the property at Glen Iris and North Avenue. Additionally, a 4-story, timber-framed offi ce building of 100,000 square feet will also be constructed. The offi ce space will feature Jessica Doyle Morgan Reynolds natural lighting and also an option for outdoor, private balconies. Lastly, the Central Food Hall will Lee Evans Jodi Selvey be expanded to off er new kiosks and a bar. Construction will last two years. Deming Fish Meredith Selvey Josh Gregory Fred Sheats AT A GLANCE | NORFOLK SOUTHERN HQ > Norfolk Southern relocating corporate Russ Jobson Pete Shelton headquarters from north Virginia to the Jeff Kelley Hayes Swann $575 million Midtown headquarters. Dany Koe Andrew Waguespack > Campus to feature two 22-story towers, Eric Kulbacki Andrew Walker containing a total of 1-million square feet. It Heather Lamb Bob Ward will include a street-side cafe, outdoor plaza, Drew Levine Stewart Yates terraces along West Peachtree, a garden, and Michael Lipton day care center. > Cousins Properties is developing the complex located at 650 West . > Delivery is anticipated Third Quarter 2021.

Colliers International | Atlanta Offi ce | Midtown Listings

999 PEACHTREE 11,126 Sublease 75 5TH STREET Paul Reese 5,452-14,884 SF Lease Paul Reese 201 17TH STREET 4,769 SF Sublease Pete Shelton UPPER WESTSIDE 4,500-120,000 SF Lease Deming Fish / 1382 PEACHTREE Jessica Doyle 26,681 SF Sale Jodi Selvey / Michael Lipton

Colliers International | Atlanta Promenade | Suite 800 1230 Peachtree Street, NE Atlanta, Georgia, 30309 Copyright © 2020 Colliers International. +1 404 888 9000 The information contained herein has been obtained from sources deemed reliable. While colliers.com/atlanta every reasonable eff ort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional4 advisorsNorth priorAmerican to acting onResearch any of the material & Forecast contained Report in this report. | Q4 2014 | Offi ce Market Outlook | Colliers International