NEW SUPPLY, ABSORPTION AND VACANCY RATES

SUBMARKET REPORT
ATLANTA
www.colliers.com/atlanta
MARKET INDICATORS
Q1 2014 | BUCKHEAD
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TRENDS & HIGHLIGHTS
11%
12%
13%
14%
15%
16%
17%
18%
19%
0
50,000
100,000
150,000
200,000
250,000
300,000
1Q13 2Q13 3Q13 4Q13 1Q14
Absorption Deliveries Vacancy
UPDATE Recent Transactions in the Market
SALES ACTIVITY
PROPERTY ADDRESS SALE PRICE SIZE SF PRICE / SF BUYER
The Plaza $62,000,000 393,107 $157.75 Lone Star Funds
One Live Oak $22,779,533 201,488 $113.06 HighBrook Inv. Mgmt.
550 Pharr Rd. $6,250,000 108,155 $57.79 Meltzer Properties
1795 Peachtree St. $3,620,000 34,000 $106.47 Morningstar Properties
LEASING ACTIVITY
TENANT PROPERTY ADDRESS SIZE SF TYPE
City of Brookhaven 4362 Peachtree Rd. 24,000 Class C Lease
SolTech Atlanta Plaza 15,086 Class A Lease
Prince Global Sports Monarch Tower 15,000 Class A Lease
Waitt Brands Terminus 100 11,778 Class A Lease
Buckhead continues to see positive absorption and steady leasing activity. Although modest
compared to the last couple of quarters, the submarkets absorption in frst quarter was the ffth
consecutive period with an increase in occupancy.
Despite the spotlight being on Central Perimeter over the past year, Buckhead has seen just as much
positive momentum and is now beginning to take some prospects away from Central Perimeter.
Since this time last year, the overall vacancy rate in Buckhead has dropped 3%. Large contiguous
blocks of space are quickly being leased up here. Currently, there are only 11 options for an of ce
tenant seeking 50,000 SF and up of contiguous space.
The lack of supply in the submarket has resulted in new spec construction being announced.
Tishman-Speyer will begin construction on the frst spec of ce building in 7 years come September.
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Source: CoStar Property, Colliers Research
Q1 2014
Projected
Q2 2014
VACANCY
NET ABSORPTION
CONSTRUCTION
RENTAL RATE
Total SF 21,186,223
Vacancy Rate 14.8%
YTD Net Absorption 95,588
YTD Deliveries 0
Under Construction 125,000
Avg. Class A Rate $25.82
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6
7
8
9
10
1
2
3
4
5
6
7
8
9
10
11
12
5
SKYLINE REVIEW
50
45
40
35
30
25
20
15
10
5
Space Available
Direct
Sublet
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BUILDING 3344 Peachtree Atlanta Plaza 3630 Peachtree Two Alliance Center Tower Place 100
RBA 483,735 SF 650,827 SF 436,309 SF 491,888 SF 613,821 SF
TYPICAL
FLOOR SIZE
24,263 SF 24,070 SF 28,259 SF 25,000 SF 19,586 SF
% LEASED 94.4% 69.4% 81.5% 93% 88.8%
LARGEST
SPACE AVAIL.
52,818 SF 191,872 SF 64,618 SF 33,171 SF 23,408 SF
RENTAL RATE
PER SF (Gross)
$37.50 $25.00-$26.50 $36.00-$36.75 $33.50 $26.50-$27.50
1 2 3 4 5
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P. 2 | COLLIERS INTERNATIONAL
MARKET REPORT | Q1 2014 | ATLANTA OFFICE | BUCKHEAD
Buildings by Number
(see opposite page)
MARTA Rail Line
New Construction
POINTS OF INTEREST
Ritz Carlton
Intercontinental
Hotel
Grand Hyatt
JW Marriott
Buckhead Village
Lenox Mall
Phipps Plaza
Lenox
Market Place
Atlanta History
Center
Buckhead Station
Tower Walk
AERIAL LEGEND
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Terminus 100 Terminus 200 Monarch Tower Phipps Tower
Buckhead Tower
at Lenox Square
655,000 SF 566,000 SF 527,761 SF 481,246 SF 348,152 SF
24,259 SF 22,640 SF 23,037 SF 25,000 SF 20,838 SF
98.5% 88.4% 85.1% 97.1% 73.3%
9,898 SF 35,107 SF 47,938 SF 12,403 SF 52,591 SF
$34.80-$35.80 $32.75-$34.75 $26.50-$31.50 $34.00 $27.00-$28.00
6 7 8 9 10
Source: CoStar Property
ACTIVE PROJECTS
UGA Terry College
of Business Campus
BUCKHEAD ATLANTA
$1 Billion Mixed-Use Project
125,000 SF Boutique Of ce
300,000 SF Retail
370 Luxury Apartment Units
Delivering 2014
Developer: Oliver McMillan
CIRCLE TERMINUS
Luxury Apartments
355 units
Delivering Spring 2014
Developer: Crescent Resources
THREE ALLIANCE CENTER
500,000 SF Of ce Tower
Under Construction Q3 2014
Delivering 2016
Developer: Tishman-Speyer
3330 PEACHTREE
Mixed-Use Project
Phase I = 17,636 SF Of ce/Retail
Phase 2 = 150,000 SF Of ce
Developers: Regent Partners/
Pope & Land;
CRIF Lending
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MARKET REPORT | Q1 2014 | ATLANTA OFFICE | BUCKHEAD
COLLIERS INTERNATIONAL | P. 3
UNITED STATES:
Colliers International
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1230 Peachtree Street, NE
Atlanta, Georgia, 30309
TEL +1 404 888 9000
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COLLIERS INTERNATIONAL
ATLANTA OFFICE SPECIALISTS:
www.colliers.com/atlanta
Accelerating success.
IN THE NEWS
Tishman-Speyer to develop Three Alliance Center: Tishman-Speyer has announced plans to develop
the fnal phase of Alliance Center and Atlantas newest of ce tower since 2008. Three Alliance Center
will be 500,000 square feet in a 30-story tower fronting Lenox Road. The Class A building is expected
to achieve either LEED-Gold or Platinum status. The main feature of the new tower will be faceted
glass as part of its skin. This will give the building a sparkle efect. Construction is expected to begin
in September 2014 granted all permits have been received.
New I-85/GA 400 connector ramps completed: The new $40 million interchange reconstruction at
GA 400 & I-85 is now complete and open to traf c. The project will help relieve arterial congestion by
allowing southbound motorists on I-85 to access GA 400 North directly. Also, it will allow southbound
GA 400 motorists to access I-85 North directly. An average of 32,200 vehicles per day are expected
to use the new ramps.
Buckhead Atlanta seeing momentum, on track to open Summer 2014: As Buckheads largest project
under construction moves forward to its summer opening, developer OliverMcMillan continues attracting
new retailers to the project. Luxury Italian label Etro will take a spot in the development planning a
2,200 sq. ft. boutique store of Buckhead Avenue to showcase its womens and mens clothing and
fragrances. In December, French bistro Le Bilboquet signed a lease for a 3,200 sq. ft. restaurant which
will be located on a parcel bounded by Peachtree Road, Pharr Road and Buckhead Avenue. Le Bilboquet
joins a number of other restaurants slated for the project. UPDATE: Warby Park, a New York City-
based eyewear retailer, is putting a store in at Buckhead Atlanta which will be the frst in Georgia.
Fashion retailers LOccitane, Moncler and Canali have also recently signed on to lease space at the project.
Accelerating success.
AT A GLANCE | Three Alliance Center
COLLIERS INTERNATIONAL | ATLANTA OFFICE | BUCKHEAD LISTINGS
Class A, 30-story of ce tower
totaling 500,000 square feet.
Final phase at Alliance Center. To
be LEED-Gold or Platinum certifed.
Will feature Atlantas frst faceted
glass curtain wall system to give the
building a sparkle efect.
Adjacent to the Buckhead MARTA
stations new pedestrian bridge.
Construction is expected by
September 2014 with a delivery in
mid-2016.
PEACHTREE PALISADES
4,219 - 10,011 SF Lease
Lee Evans /
Scott OHalloran
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 frm of Colliers
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$2.1 billion in annual revenue
Over 1.45 billion square feet under
management
Over 15,700 professionals
Monica Davis Craig Mendel
Lee Evans Scott OHalloran
Deming Fish Jodi Selvey
Huston Green Fred Sheats
Josh Gregory Pete Shelton
Tim Hufman Hayes Swann
Russ Jobson Will Tyler
Jef Kelley Andrew Waguespack
Drew Levine Andrew Walker
Michael Lipton Bob Ward
Nicole Littleton Brent Whitehead
Bob Mathews
MARKET REPORT | Q1 2014 | ATLANTA OFFICE | BUCKHEAD