NEW SUPPLY, ABSORPTION AND VACANCY RATES

SUBMARKET REPORTATLANTA

www.colliers.com/atlanta

MARKET INDICATORS

Q3 2011 | NORTH FULTON

Nort

h F

ulton

TRENDS & HIGHLIGHTS

10%

11%

12%

13%

14%

15%

16%

17%

18%

(300,000)

(200,000)

(100,000)

0

100,000

200,000

300,000

3Q10 4Q10 1Q11 2Q11 3Q11

Absorption Deliveries Vacancy

Total SF 27,772,991

Vacancy Rate 15.4%

YTD Net Absorption 338,467

YTD Deliveries 0

Under Construction 0

Avg. Class A Rate $19.99

UPDATE Recent Transactions in the Market

SALES ACTIVITY

PROPERTY ADDRESS SALE PRICE SIZE SF PRICE / SF BUYER

6455 E. Johns Crossing $11,135,223 98,851 $112.65 Rosemont Realty1200 Bluegrass Lakes Pky. $9,600,000 93,963 $102.17 OA Development4100 Old Milton Pky. $5,775,000 41,358 $139.63 Wilson & Nolan7310 McGinnis Ferry Rd. $3,329,000 35,835 $92.91 Hisense USA Corp.

LEASING ACTIVITY

TENANT PROPERTY ADDRESS SIZE SF TYPE

GE Consumer Finance Windward Plaza 300 203,248 Class A Renewal

Ace Insurance Royal Centre Two 95,255 Class A Lease

Total System 4501 Northpoint Pkwy. 59,501 Class A Lease

W.W. Grainger Brookside 300 29,246 Class B Renewal

• After three quarters of leading the Atlanta market in positive space absorption, North Fulton saw its overall occupancy decrease in the third quarter. This is due to AT&T’s consolidation from the submarket to its Midtown campus.

• Despite the negative quarter, North Fulton’s vacancy rate is still down 1.6% from this time last year. Over the past year, a total of 439,000 square feet of vacant space has been fi lled.

• Leasing activity in North Fulton remains steady. Tech companies continue to be the most active prospects in the submarket. Small business growth has also picked up in the area.

• North Fulton should fi nish the year on a positive note; marking the second consecutive year with an increase in occupancy levels.

Squa

re F

eet

Source: CoStar Property, Colliers Research

Q3 2011Projected

Q4 2011

VACANCY

NET ABSORPTION

CONSTRUCTION — —

RENTAL RATE —

COLLIERS INTERNATIONAL

ATLANTA OFFICE SPECIALISTS:

This market report is a research document of Colliers International. Information herein has been deemed reliable and no representation is made as to the accuracy thereof. Colliers International-Atlanta, Inc., and certain of its subsidiaries, is an independently owned and operated business and a member fi rm of Colliers International Property Consultants, an affi liation of independent companies with over 512 offi ces throughout more than 61 countries worldwide.

www.colliers.com/atlanta

Accelerating success.

IN THE NEWS

• State Farm bringing up to 400 new jobs: State Farm, the nation’s largest property and casualty insurance company, is currently in the process of centralizing its regional auto insurance and fi re underwriting operations to its Johns Creek campus. The company is consolidating its offi ces in other southeastern states and moving approximately 400 white-collar jobs to North Fulton. This strategy helps State Farm lower its operating costs in the challenging economy.

• Prospect Park goes for $22.8 million: The former luxury retail and mixed-used development known as Prospect Park has a new owner. Wells Fargo sold the 101-acre property to North American Properties for $22.8 million ($225,742 an acre). The property was previously owned by developer Stan Thomas. The bank took control of the land when loan obligations were not met; a common theme among large developments under construction prior to the economic downturn. North American Properties plans to scale down the next version of the project from 850,000 SF of retail to around 400,000 SF. The development will still include some elements of offi ce and for-sale residential units. The new owner hopes to have the fi rst phase completed by October 2013, prior to the holiday season. UPDATE: AVALON IN ALPHARETTA - North American Properties has changed the name of Prospect Park to Avalon. The developer hopes to associate the new name with affl uent baby boomers which are the major demographic target in the Alpharetta area; and also disassociate itself from the old name.

Accelerating success.

COLLIERS INTERNATIONAL | ATLANTA OFFICE | NORTH FULTON LISTINGS

ROYAL CENTRE

1,723-51,634 SF LeaseLee Evans / Scott O’Halloran

100 WINDWARD FOREST

13,643 SF LeaseLee Evans / Scott O’Halloran

LAKE @ NORTHPOINT

1,501-15,623 SF LeaseLee Evans / Scott O’Halloran

AT A GLANCE | Prospect Park Goes For $22.8 Million • Former luxury retail and mixed-use development proposed by developer Stan Thomas.

• Foreclosed on by Wells Fargo as a result of the economic downturn.

• North American Properties will scale down development from 850,000 SF of retail to about 400,000 SF.

• Will include a mix of offi ce and for-sale residential in addition to retail.

• First phase completion planned for October 2013.

UNITED STATES:

Colliers InternationalTwo Midtown Plaza | Suite 11001349 West Peachtree Street, NEAtlanta, Georgia, 30309TEL +1 404 888 9000FAX +1 404 870 2845

Bob Allen Bob Mathews

Lee Evans Craig Mendel

Deming Fish Scott O’Halloran

Huston Green Hugh Paff ord

Tim Hoff man Jodi Selvey

Russ Jobson Fred Sheats

Nicole Kamen Pete Shelton

Jeff Kelley Hayes Swann

Brett Kingman Andrew Walker

Drew Levine Bob Ward

Michael Lipton

512 offi ces in 61 countries on 6 continentsUnited States: 125Canada: 38Latin America: 18Asia Pacifi c: 214EMEA: 117

• $1.5 billion in annual revenue

• Over 2.2 billion square feet under management

• Over 13,000 professionals

MARKET REPORT | Q3 2011 | ATLANTA OFFICE | NORTH FULTON