The Atlanta office market saw a slight decrease in vacancy rate from 19.8% to 19.6% in the third quarter of 2011. Net absorption was 309,022 SF with one new building delivering 4,000 SF. Quoted rental rates decreased from $19.19 to $19.08 per square foot. There is currently 765,077 SF of office space under construction, an increase from last year.

1. ATLANTA OFFICE MARKET
MARKET OVERVIEW
The Atlanta Office market ended the third quarter 2011 with a
vacancy rate of 19.6%. This rate represents a slight decrease
from the previous quarter rate of 19.8%. This decrease
occurred in a quarter where Atlanta saw 309,022 SF in net
absorption and one building, 4,000 SF, deliver to the market.
Quoted rental rates ended the quarter at $19.08 PSF, down
from last quarter rate of $19.19 PSF. Currently there is
765,077 SF of office product under construction in
Metro Atlanta.
ECONOMIC OVERVIEW
Most economists
believe the European
debt crises will
remain a threat to
the global economy
into 2012. Lower oil
prices and the recent end to Japanese supply disruptions
stemming from the March earthquake have lifted
impediments to consumer spending, ending the third quarter
better-than-expected. However, uncertainty will impact the
confidence of business leaders and consumers dampening
future business investment and hiring.
Atlanta’s outlook for the remainder of 2011 is optimistic. The
healthcare, education and supply chain/distribution industries
continue to grow for Atlanta, as our business climate, location
to major transportation hubs, technology and talent pool
remain favorable for corporate relocations.
Commercial Real Estate Services, Worldwide.
Brannen Goddard
404 812 4000 | fax 404 816 3939 | www.naibg.com
Suite 1100 | 5555 Glenridge Connector | Atlanta GA 30342
Information is deemed from reliable sources. No warranty is made as to its accuracy. ATLANTA OFFICE MARKET // Third Quarter 2011
Leasing Highlights in Select CoStar Markets
Color Coded by Vacancy Rate
Vacancy Rate: Less than 5% 5% to 10% 10% to 15% 15% to 20% Over 20%
North Fulton
Vacancy: 19.3%
YTD Abs: 67K SF
Quoted Rates: $17.82 PSF
Northlake
Vacancy: 11.9%
YTD Abs: (49)K SF
Quoted Rates: $17.48 PSF
West Atlanta
Vacancy: 26.8%
YTD Abs: 65K SF
Quoted Rates: $15.17 PSF
South Atlanta
Vacancy: 19.1%
YTD Abs: (129)K SF
Quoted Rates: $17.51 PSF
Northwest Atlanta
Vacancy: 19.8%
YTD Abs: 9K SF
Quoted Rates: $18.42 PSF
Northeast Atlanta
Vacancy: 22.5%
YTD Abs: (95)K SF
Quoted Rates: $16.63 PSF
Downtown Atlanta
Vacancy: 17.5%
YTD Abs: (356)K SF
Quoted Rates: $17.66 PSF
Central Perimeter
Vacancy: 22.9%
YTD Abs: (353)K SF
Quoted Rates: $20.17 PSF
Buckhead
Vacancy: 20.1%
YTD Abs: 685K SF
Quoted Rates: $23.32 PSF
Midtown Atlanta
Vacancy: 20.8%
YTD Abs: (417)K SF
Quoted Rates: $22.83 PSF
LEASING HIGHLIGHTS
Select Markets by Vacancy Rate (YTD)
UNEMPLOYMENT RATE SEPT 2011
National 9.1%
Georgia 10.3%
Atlanta MSA 10.3%
3Q’11
MARKET INDICATORS
Construction Rental
Rates
Net
Absorption
Vacancy
Rate

2. VACANCY
The overall vacancy rate at the end of the third quarter
2011 is 19.6%, down from the previous quarter when it
was 19.8%. The current rate represents over 41.2 million
square feet of vacant office space throughout the Metro
Atlanta Office market, a 1% increase from this time last
year. The current amount of vacant sublease space is 2.1
million square feet, down slightly from last quarter.
NET ABSORPTION
At the close of the quarter, an overall net absorption of
309,022 SF was reported, an increase over the previous
quarter. The recorded net absorption for the current
quarter by class follows: Class A: 116,750 SF, Class B:
144,780 SF and Class C: 47,492 SF.
Leasing activity was over 2.9 million square for the quar-
ter, up from the previous quarter.
YTD NET ABSORPTIONS BY BUILDING TYPE
» CLASS A 1,037,416 SF
» CLASS B (1,408,548) SF
» CLASS C (104,301) SF
» YTD (475,433) SF
CONSTRUCTION ACTIVITY
At the close of the quarter, the Atlanta Office market had
a single building, 4,000 SF, in new construction
deliveries. This compares to 40,162 SF in deliveries last
quarter and 21,000 SF this time last year.
Currently there is 765,077 SF of new office projects
under construction (11 buildings), an increase from the
451,318 SF that was underway this time last year.
The largest projects currently underway are Cox
Headquarters, Buildings 1 & 2, totaling 600,000 SF
located in the Central Perimeter submarket.
QUOTED RENTAL RATES
The current overall quoted Atlanta Office rental rate of
$19.08 PSF represented a $0.11 PSF decrease in rental
rates from the end of the previous quarter, when rents
were $19.19 PSF.
The Class A rental rates are reported at $21.50 PSF with
the highest rate reported in the Buckhead submarket at
$24.55 PSF with Midtown closely following at $24.18 PSF.
Class B sector ended the quarter with quoted rental rates
of $16.29 PSF, which is $0.11 PSF lower than last quarter
and $0.45 PSF lower than this time last year.
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Class A Class B Class C Total
VACANCY RATES BY CLASS
Direct Sublet
5%
95%
ATLANTA OFFICE MARKET THIRD QUARTER 2011

3. MARKET HIGHLIGHTS
Vacancy Rate Average Vacancy Quoted Rates
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q 2010 1q 2010 2q 2010 3q 2010 4q 2011 1q 2011 2q 2011 3q
$18.00
$18.50
$19.00
$19.50
$20.00
$20.50
$21.00
$21.50
OVERALL VACANCY & QUOTED RATES
©2011 NAI Brannen/Goddard, LLC. Data compiled from CoStar Group, Inc.
Significant Third Quarter 2011 Lease Transactions (New & Renewal)
Building Submarket Square Feet Tenant Name
Windward Plaza - Bldg 300 North Fulton 203,245 GE Consumer Finance
Atlanta Financial Center - South Upper Buckhead 135,075 SunTrust Robinson Humphrey
2635 Century Center Chamblee 119,178 FBI
Companile Plaza Midtown 72,232 SunTrust Bank
4501 Northpoint Parkway North Fulton 59,501 Total Systems Services
Significant Third Quarter 2011 Construction Deliveries
Building Submarket Square Feet Class
4536 Nelson Brogdon Blvd - Bldg B Northeast Atlanta 4,000 B
Significant Third Quarter 2011 Properties Under Construction
Building Submarket Square Feet Delivery
Cox Headquarters Bldg 1 Central Perimeter 300,000 2Q 2012
Cox Headquarters Bldg 2 Central Perimeter 300,000 4Q 2012
Parkway Professional Northeast Atlanta 67,500 4Q 2011
7316 Spout Springs Road Northeast Atlanta 20,000 3Q 2011
1887 Powder Springs Road Northwest Atlanta 16,650 3Q 2012
All Construction Activity (Markets Ranked by Under Construction Square Footage)
Under Construction Inventory
Market # Bldgs Total RBA Preleased SF Preleased % Available SF
Central Perimeter 3 616,000 611,840 99.3% 4,160
Northeast Atlanta 3 94,634 35,965 38.0% 58,669
Northwest Atlanta 2 25,150 14,700 58.4% 10,450
South Atlanta 1 14,293 14,293 100% 0
Northlake 1 10,000 100 1.0% 9,900
North Fulton 1 5,000 0 0.0% 5,000
Midtown Atlanta 0 0 0 0.0% 0
West Atlanta 0 0 0 0.0% 0
Downtown Atlanta 0 0 0 0.0% 0
Buckhead 0 0 0 0.0% 0
Totals 11 765,077 676,898 88.5% 88,179
FUTURE DELIVERIES
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2011 4Q 2012 1Q 2012 2Q 2012 3Q 2012 4Q
Net Absorption Deliveries
(1,500)
(1,000)
(500)
0
500
1,000
1,500
2,000
2,500
2009
1q
2009
2q
2009
3q
2009
4q
2010
1q
2010
2q
2010
3q
2010
4q
2011
1q
2011
2q
2011
3q
ABSORPTION & DELIVERIES

4. Commercial Real Estate Services, Worldwide.
Brannen Goddard
5555 Glenridge Connector, Suite 1100
Atlanta GA 30342
www.naibg.com
©2011 NAI Brannen/Goddard, LLC
Market
Existing Inventory Vacancy YTD Net
Absorption
YTD
Deliveries
Under
Const SF
Quoted
Rates# Bldgs Total RBA Direct SF Sublease SF Total SF Vac%
Buckhead 117 19,763,394 3,779,640 183,231 3,962,871 20.1% 685,587 0 0 $23.32
Central Perimeter 266 29,490,494 6,478,652 287,806 6,766,458 22.9% (353,524) 0 316,000 $20.17
Downtown Atlanta 157 26,152,374 4,225,499 343,024 4,568,523 17.5% (356,019) 0 0 $17.66
Midtown Atlanta 136 22,216,380 4,373,146 253,529 4,626,675 20.8% (417,459) 0 0 $22.83
North Fulton 337 24,435,587 4,299,612 423,016 4,722,628 19.3% 67,394 0 0 $17.82
Northeast Atlanta 460 21,404,091 4,588,724 218,838 4,807,562 22.5% (94,778) 40,162 87,500 $16.63
Northlake 397 19,545,028 2,230,948 104,275 2,335,223 11.9% 48,602 0 0 $17.48
Northwest Atlanta 465 32,873,212 6,192,130 300,961 6,493,091 19.8% 8,996 0 16,650 $18.42
South Atlanta 281 11,409,561 2,105,416 78,025 2,183,441 19.1% (129,234) 19,015 0 $17.51
West Atlanta 57 2,986,956 801,535 0 801,535 26.8% 65,002 0 0 $15.17
TOTALS 2,673 210,277,077 39,075,302 2,192,705 41,268,007 19.6% (475,433) 59,177 420,150 $19.08
Market
Existing Inventory Vacancy YTD Net
Absorption
YTD
Deliveries
Under
Const SF
Quoted
Rates# Bldgs Total RBA Direct SF Sublease SF Total SF Vac%
Buckhead 51 14,739,004 2,941,483 159,303 3,100,786 21.0% 690,290 0 0 $24.55
Central Perimeter 77 20,176,282 3,784,686 159,178 3,943,864 19.5% (49,991) 0 300,000 $21.89
Downtown Atlanta 26 13,720,911 2,640,966 341,714 2,982,680 21.7% 111,702 0 0 $19.09
Midtown Atlanta 33 14,326,101 3,087,443 221,157 3,308,600 23.1% 126,353 0 0 $24.18
North Fulton 99 14,118,568 2,358,353 344,950 2,703,303 19.1% (29,365) 0 0 $19.78
Northeast Atlanta 61 6,338,845 1,424,105 124,685 1,548,790 24.4% (73) 0 67,500 $19.84
Northlake 21 2,651,153 373,350 18,338 391,688 14.8% 42,057 0 0 $19.87
Northwest Atlanta 77 15,695,460 2,614,231 188,068 2,802,299 17.9% 127,614 0 0 $20.89
South Atlanta 20 1,393,033 417,901 32,963 450,864 32.4% 18,829 0 0 $20.21
West Atlanta 1 71,500 0 0 0 0.0% 0 0 0 $0.00
TOTALS 466 103,230,857 19,642,518 1,590,356 21,232,874 20.6% 1,037,416 0 367,500 $21.50
Market
Existing Inventory Vacancy YTD Net
Absorption
YTD
Deliveries
Under
Const SF
Quoted
Rates# Bldgs Total RBA Direct SF Sublease SF Total SF Vac%
Buckhead 43 4,466,292 779,068 23,928 802,996 18.0% 30,925 0 0 $18.30
Central Perimeter 135 8,073,163 2,327,190 128,628 2,455,818 30.4% (309,316) 0 16,000 $18.09
Downtown Atlanta 74 9,319,414 1,102,509 1,310 1,103,819 11.8% (409,745) 0 0 $14.88
Midtown Atlanta 81 7,214,988 1,232,711 20,948 1,253,659 17.4% (545,267) 0 0 $18.05
North Fulton 215 9,672,251 1,864,337 71,533 1,935,870 20.0% 125,381 0 0 $15.00
Northeast Atlanta 350 13,557,793 3,018,370 90,558 3,108,928 22.9% (66,420) 40,162 20,000 $14.63
Northlake 280 13,773,177 1,547,919 85,937 1,633,856 11.9% 18,884 0 0 $17.45
Northwest Atlanta 328 15,095,121 3,381,504 112,893 3,494,397 23.1% (132,045) 0 16,650 $15.90
South Atlanta 198 8,125,275 1,324,720 45,062 1,369,782 16.9% (159,109) 19,015 0 $17.12
West Atlanta 36 1,328,621 135,739 0 135,739 10.2% 38,164 0 0 $18.81
TOTALS 1,740 90,626,095 16,714,067 580,797 17,294,864 19.1% (1,408,548) 59,177 52,650 $16.29
Market
Existing Inventory Vacancy YTD Net
Absorption
YTD
Deliveries
Under
Const SF
Quoted
Rates# Bldgs Total RBA Direct SF Sublease SF Total SF Vac%
Buckhead 23 558,098 59,089 0 59,089 10.6% (35,628) 0 0 $18.18
Central Perimeter 54 1,241,049 366,776 0 366,776 29.6% 5,783 0 0 $13.60
Downtown Atlanta 57 3,112,049 482,024 0 482,024 15.5% (57,976) 0 0 $13.69
Midtown Atlanta 22 675,291 52,992 11,424 64,416 9.5% 1,455 0 0 $11.55
North Fulton 23 644,768 76,922 6,533 83,455 12.9% (28,622) 0 0 $14.06
Northeast Atlanta 49 1,507,453 146,249 3,595 149,844 9.9% (28,285) 0 0 $13.11
Northlake 96 3,120,698 309,679 0 309,679 9.9% (12,339) 0 0 $14.29
Northwest Atlanta 60 2,082,631 196,395 0 196,395 9.4% 13,427 0 0 $15.40
South Atlanta 63 1,891,253 362,795 0 362,795 19.2% 11,046 0 0 $14.10
West Atlanta 20 1,586,835 665,796 0 665,796 42.0% 26,838 0 0 $11.25
TOTALS 467 16,420,125 2,718,717 21,552 2,740,269 16.7% (104,301) 0 0 $13.85
TOTAL ATLANTA OFFICE MARKET STATISTICS
CLASS “A” STATISTICS
CLASS “B” STATISTICS
CLASS “C” STATISTICS
Source: CoStar Group, Inc.
THIRD QUARTER 2011