Offi ce Submarket Report ATLANTA | MIDTOWN Q2 2020

Key Takeaways Market Indicators Midtown Midtown > Second quarter offi ce absorption in Midtown was just over Relative to prior period Q2 2020 Q3 2020* 62,000 square feet; a fairly modest gain for the submarket but VACANCY positive nonetheless. - NET ABSORPTION > The overall vacancy rate for the submarket remained unchanged as the amount of new space delivered closely matched the same amount CONSTRUCTION of space absorbed. RENTAL RATE > Midtown landed the largest offi ce lease transaction of the quarter with Microsoft committing to all of Hines’ Atlantic Yards project at *Projected Atlantic Station. The 524,000 square-foot lease will likely be the largest for the year. > Construction activity remains highest in the submarket. Just Summary Statistics All Midtown Offi ce Market Classes Class A Class B under 4.5 million square feet is in development. Approximately 25% of the space will deliver by year’s end. Total Inventory (Millions Square Feet) 26.3 20.6 4.7 > Midtown appears to be immune to the eff ects of COVID-19. The submarket continues to be a major attractor of technology companies. Vacancy Rate 11.9% 12.8% 8.8% More positive activity is expected in the coming quarters. Change From Q1 2020 - -0.2% 1.4% Absorption, Deliveries and Vacancy Absorption YTD 698 899 -169 700,000 14% (Thousands Square Feet) 600,000 13% Construction Deliveries YTD 12% 439 439 - 500,000 (Millions Square Feet) 11%

Square Feet 400,000 10% Under Construction 300,000 4.5 4.5 - 9% (Millions Square Feet) 200,000 8% 100,000 7% Asking Rents Per Square Foot Per Year 0 6% 2Q19 3Q19 4Q19 1Q20 2Q20 Average Quoted $40.68 $41.59 $28.31 Absorption Deliveries Vacancy Change From Q1 2020 0.6% 0.4% -0.1% UPDATE - Recent Transactions in the Market Notable Leasing Activity

TENANT PROPERTY LANDLORD SIZE (SF) TYPE

Microsoft Atlantic Yards Hines 523,511 Class A Lease Atlanta Humane Society 981 Howell Mill Road Drapac Capital Partners 43,211 Class C Sale-Leaseback Facebook T3 West Midtown Hines 35,904 Class A Lease McDermott Will & Emery LLP 1180 Peachtree Hines 11,855 Class A 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 1601 W Peachtree St 12/17/2019 $37,200,000 90,000 $413.33 Apollo Global Management 981 Howell Mill Rd. 3/9/2020 $11,000,000 43,211 $254.56 Drapac Capital 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 1180 Peachtree 1075 Peachtree Promenade 1100 Peachtree Center RBA 1,100,312 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% 92.2% 96.2% 90.9% 90% LARGEST SPACE AVAIL. 23,137 SF 34,656 SF 27,898 SF 207,613 SF 44,288 SF RENTAL RATE PER SF (Gross) $44.50-$45.50 $46.00 $44.50-$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 3 1 9 4 10 12 3

4

1 5 2 7

2 Offi ce Submarket Report | Q2 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% 91.4% 99.3% 96.7% 53.9% ANTHEM PHASE II 23,170 SF 92,343 SF 25,393 SF 36,686 SF 414,484 SF 352,000 SF Offi ce Under Construction $39.00-$43.00 $45.00 $44.00 $38.00-$42.00 $38.00-$42.00 Developer: Portman Holdings 6789104 Aerial Legend Points of Interest

1 Georgia Tech 7 Colony Square MIDTOWN UNION 612,947 SF Offi ce 2 Atlantic Station 8 Federal Reserve Under Construction Buildings by Number Developer: Granite Properties (see opposite page) Center for Margaret Mitchell 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 The Varsity Under Construction Center Developer: Hines

3 Offi ce Submarket Report | Q2 2020 | Midtown | Colliers International - Atlanta In The News FOR MORE INFORMATION > Microsoft confi rms 1,500 job expansion in Midtown, will occupy new project at Atlantic Station: Microsoft is offi cially expanding into Midtown. The technology company signed a lease for Scott Amoson 523,000 square feet in Hines’ Atlantic Yards development currently under construction. The deal VP, Director of Research | Atlanta puts to rest the rumor the company was searching for a large expansion in Atlanta. The new offi ce will +1 404 877 9286 create 1,500 jobs and is expected to open in the summer of 2021. Atlanta’s tech growth, specifi cally [email protected] in Midtown, was a driving factor for the company. The leasing transaction will likely be the largest completed in Atlanta’s offi ce market this year given the ongoing pandemic’s aff ects on overall leasing activity. COLLIERS INTERNATIONAL > Google gobbles more Midtown offi ce space: Google is said to be expanding its initial lease at ATLANTA OFFICE SPECIALISTS 1105 West Peachtree. The new lease would have the technology giant occupying up to 475,000 square Allison Bittel Michael Lipton feet in the project. Google would not confi rm the expansion; however, a recent conference call by Frank Cannon Paul Reese prominent developer Cousins Properties may have provided credence to the transaction. Selig’s offi ce tower is set to deliver in spring of next year and is currently 40% to law fi rm Smith Gambrell & Russell Jessica Doyle Morgan Reynolds and Google. With the 300,000 square-foot expansion by Google the building would be 85% preleased Lee Evans Jodi Selvey upon delivery. 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 day care center. > Cousins Properties is developing the complex located at 650 West Peachtree Street. > 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