The Bowers Digest. We strongly believe Metro Atlanta will have positive absorption for RICHARD BOWERS & CO. Real Estate Trends Mid-Year 2011

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1 The Bowers Digest Metro Atlanta Office Market Analysis Vol. 22, No. 2 I285/GA4 leads all submarkets in vacant space. Urban Suburban rental rates continue to trend downward. We strongly believe Metro Atlanta will have positive absorption for 211. Urban vacancies remain over 2 percent. Real Estate Trends MidYear 211 Providing self generated and proprietary office market data since 1989

2 In Brief: The Atlanta Market Midyear 211 market numbers reflected 263,267 square feet of positive absorption the highest absorption since the first quarter of 28, although the year to date remains slightly in the red with 25,141 square feet of negative absorption. quoted rental rates have remained fairly stable, decreasing a penny per square foot from $21.2 to $21.1. The urban corridor continues to outperform the suburbs with 27,286 square feet of positive absorption yeartodate versus 232,427 square feet of negative absorption for the suburbs. Notwithstanding, the five leading submarkets in occupancy are all in the suburbs: NE ExpresswaySouth at 9.48 percent, followed by I285 East/Stone Mountain at percent, I75 Corridor at percent, I285/I85/Northlake at percent, and GA4 North at percent. Of the five largest submarkets, Downtown at 8.33 percent has the highest occupancy in the urban corridor, and Georgia4 North has the highest occupancy at percent for the suburbs. The major reason the urban submarket has a lower occupancy is over the last five years from (211 will have no deliveries) the vast majority of new office development has been along the urban corridor totaling approximately four million square feet, while over the same five year time period the suburban corridor only delivered approximately one million square feet. The five leading submarkets in net absorption were Buckhead/Lenox at 119,579 square feet, Midtown at 12,88 square feet, I75/I285 at 82,43 square feet, Georgia4 North at 79,392 square feet, and Peachtree Corners at 39,844 square feet. Three submarkets recorded negative absorption in the second quarter of 211 versus nine submarkets posting negative absorption in the first quarter of 211. Infrastructure. A number of ongoing and significant infrastructural improvements are taking place, including the halfdiamond intersection at Hammond Drive and Georgia 4, as well as the additional easing of eastbound traffic on I285 entering Georgia 4 northbound with the lane creation at Glenridge Drive. Additionally, the BeltLine, a great addition for intown neighborhood growth and connectivity, is moving forward with certain segments already open. Atlanta has also been approved for a streetcar line from the Martin Luther King, Jr. Center to CNN Center, the Georgia Dome, and Phillips Arena with federal funding providing $47.6 million to go towards the project. The work on the Maynard H. Jackson Jr. International Terminal is proceeding towards completion in 212. This millionplus square foot airport addition plus 6, additional parking spaces is perhaps our largest infrastructural improvement in progress. The new international terminal will have a separate entrance from the I75 connector at Central Avenue; whereas domestic flights will continue to utilize I85 at Camp Creek Parkway. With the acquisition of AirTran Airways by Southwest Airlines and the opening of the international terminal, a significant number of additional flights are projected for Atlanta already the worldês busiest airport. The pending vote for a one cent sales tax for infrastructural improvements scheduled for 212 (the Transportation Investment Act) is moving Market Overview forward. Suggestions from government officials and our citizens include many excellent proposals to improve infrastructure and traffic throughout the metro Atlanta region. The total estimated funding for transportation through this tax increase is estimated to be $8 billion over the next decade. We hope a substantial amount of the projected money to be provided over ten years will be applied to commuter rail, preferably utilizing existing rail lines and rightof ways. The multimodal station is still moving forward at Five Points although funding outside of the Transportation Investment Act will need to be provided from other sources. The multimodal station will be the major transportation hub for the metro Atlanta region tying buses, MARTA, our new streetcar line and commuter rail at one central location. Cousins Properties has been selected as the master developer for this major project which has been in the planning stage for well over ten years. Governor Deal has dedicated nearly $5 million of the stateês annual budget towards the creation of nine new reservoirs in metro Atlanta which was planned prior to the 29 court decision barring the use of Lake Lanier as a major water source for Atlanta. Although that decision was recently overturned, greater water resources and conservation will still be required for AtlantaÊs future growth. Outlook. We strongly believe metro Atlanta will have positive absorption for 211, the first positive year since 28, which was meager at 6,18 square feet. Despite uncertainly over the economy, the debt ceiling, and funding limitations, there is still a good possibility we will achieve as much as one million square feet of positive absorption for 211 something which hasnêt occurred since the three years before the 28 downturn. The supporting factors for an improved Atlanta office market include a better economy and some pentup demand in office expansions which have been delayed or deferred by major corporations. Furthermore, Atlanta has a readily availible office work force comprised not only of recent college and high school graduates entering the labor force and office personnel relocating to Atlanta, but also the 75, office workers who have lost their jobs in this economic downturn. The absence of new deliveries for 211 along with increased leasing activity and the possibility of some office buildings being taken for alternative uses should signal a significant rise in occupancy rates. Additionally, Atlanta was the second fastest growing metropolitan region with 1.5 million people having relocated to the region during the last decade; increasing the possibility of additional office absorption with labor availability, some pentup demand and an improving economy. For the remainder of the year, we wish Atlantans and our city an improved commercial and residential real estate market, as well as a growing job market. Our Federal Government clearly needs to do more to assist the entrepreneurial private sector in funding availability and tax benefits as this sector is the engine for increased employment and a major source of additional revenue for necessary federal, state, and local government requirements. TWO

3 The Atlanta Office Market 2nd Quarter 211 Year to Date (25,141) 2nd Quarter 263,267 Total Existing Square Feet 135,42,44 Total Available Square Feet 27,486,161 Percent Of Total Space 2.3% Quoted Rental $21.1 Space Delivered YTD Square Feet * 2nd Quarter 21 (497,743) (53,777) 135,42,44 27,42, % $ ,64,626 * Excludes Net Losses Urban Corridor Submarkets 1. Downtown 2. Midtown 3. Buckhead/Lenox Suburban Submarkets 4. Airport/South 5. Decatur 6. GA4 North 7. I2W/Greenbriar 8. I285E/Stone Mountain 9. I285/GA4 1. I285/I85/Northlake 11. I75 Corridor 12. I75N/Marietta/Johnson Ferry 13. I75/I NE ExpresswayNorth 15. NE ExpresswaySouth 16. Peachtree Corners Atlanta s Top Five Ranking Submarkets Net 2nd Quarter 211: Total Available Square Feet: Buckhead/Lenox 119,579 I285/GA4 4,686,611 Midtown 12,88 Buckhead/Lenox 3,752,37 I75/I285 82,43 I75/I285 3,563,342 GA4 North 79,392 Midtown 3,547,986 Peachtree Corners 39,844 Downtown 3,313,746 Total Existing Square Feet: Submarket Occupancy : I285/GA4 22,565,443 NE Expressway South 9.48% I75/I285 18,857,31 I285E/Stone Mtn 87.12% Downtown 16,845,572 I75 Corridor 86.88% GA4 North 15,787,617 I285/I85/Northlake 84.96% Buckhead/Lenox 15,273,538 GA4 North 84.42% Quoted Rental : Class A Rental : Midtown $25.51 I75 Corridor $3. Buckhead/Lenox $25.22 Midtown $28.1 I75 Corridor $21.98 Buckhead/Lenox $27.68 I285/GA4 $21.73 I285/GA4 $23.26 Downtown $2.96 Downtown $23.24 The Bowers Digest was prepared by the Research Department & Assistants of Richard Bowers & Company. The numerical data summarized herein were obtained directly from the owners and managers of the buildings included in the Richard Bowers & Company database. Richard Bowers & Company takes no responsibility for the accuracy of the information provided by others. Additional copies are available at $25. each. Copyright 211 by Richard Bowers & Company, Atlanta, Georgia. All rights reserved. THREE

4 Atlanta Market Trends By Quarter Quarter Total Delivered Qtr: Delivered Ytd 4 Qtr Total Net Year To Date Quarter Rental 2Q211 1Q ,42,44 135,42,44 27,486,161 27,749, % 2.49% (65,368) (832,412) (25,141) (288,48) 263,267 (288,48) $21.1 $21.2 4Q21 3Q21 2Q21 1Q21 135,357,44 135,42,44 135,42,44 135,42,44 27,438,61 27,32,435 27,42,793 26,917, % 2.18% 2.25% 19.88% 1,64,626 1,64,626 1,64,626 1,64,626 1,64,626 (537,97) (952,218) (1,364,227) (1,566,872) (537,97) (397,385) (497,743) 6,34 (14,585) 1,358 (53,777) 6,34 $21.2 $21.26 $21.39 $ Q29 3Q29 2Q29 1Q29 133,761, ,838,47 132,542,94 132,74,631 25,282,424 24,83,824 23,197,3 22,22, % 18.53% 17.5% 16.67% (76,233) 1,295, ,273 (168,464) 1,518,719 1,594, ,89 (168,464) (1,947,45) (1,797,22) (1,552,421) (796,49) (1,947,45) (1,392,212) (1,8,561) (374,139) (554,833) (311,651) (76,422) (374,139) $21.42 $21.56 $21.61 $ Q28 3Q28 2Q28 1Q28 132,243,95 131,664, ,747,344 13,723,492 21,816,66 2,832,889 2,849,49 19,874, % 15.82% 15.83% 15.2% 578,763 (83,12) 1,23, , 1,671,63 1,92,84 1,175, , 6, ,974 2,116,415 2,975,148 6, , ,48 482,458 (45,8) (66,852) 49,59 482,458 $21.64 $21.62 $21.65 $21.4 4Q27 3Q27 2Q27 1Q27 13,571,492 13,314, ,983,25 128,785,412 2,25,245 19,94,218 21,21,325 2,911, % 15.3% 16.31% 16.24% 256,85 331,482 1,197,793 (23,871) 1,762,29 331,482 1,173,922 (23,871) 2,738,242 3,587,67 2,565,641 2,12,9 2,738,242 2,746,464 1,153, ,552 (8,222) 1,592,589 98, ,552 $21.12 $21.6 $2.97 $2.85 4Q26 3Q26 2Q26 1Q26 128,89, ,88,57 128,282, ,625,682 21,181,278 22,21,771 22,66,582 21,872, % 17.1% 17.2% 17.14% , ,139 (513,971) , ,168 (513,971) 1,797,49 1,252,56 1,64,273 79,99 1,797,49 956,23 385,643 (77,48) 841,26 57,56 462,691 (77,48) $2.53 $2.36 $2.3 $2.22 4Q25 3Q25 2Q25 1Q25 128,139, ,867,8 127,936,1 127,941,879 22,39,57 22,333,57 22,784,134 22,978, % 17.47% 17.81% 17.96% 271,853 (68,3) (5,779) 529, , ,53 523,83 529,582 1,335,572 1,175,646 1,341,36 1,596,38 1,335,572 1,39, , , , , , ,425 $2.34 $2.28 $2.26 $2.24 The Urban Corridor As of midyear 211, the urban corridor has recorded 27,286 square feet of positive absorption yeartodate. Three of the last four quarters showed positive absorption for a cumulative total of 554,29 square feet since the beginning of the third quarter of 21. The fourquarter cumulative absorption in the three urban submarkets represents the highest such total since the second quarter of 28 before the current economic downturn had started to affect the office market. quoted rental rates across the three urban submarkets have continued to fall slightly, down 12 cents from first quarter 211 to $23.79 per square foot, and 59 cents lower than the 3rd quarter of 21. With the absence of any new office deliveries since the first quarter of 21 and no new construction currently on the horizon, the urban submarkets have steadily decreased their vacancy rate from a high of percent in the second quarter 21 to percent currently. Buckhead has had the most success over the last year raising the occupancy rate with net positive absorption in excess of 67, square feet, increasing occupancy by nearly five percentage points since the last Buckhead office delivery in the first quarter of 21. A large portion of the absorption has FOUR

5 come through the leaseup of the newest class A buildings delivered in late 29 and early 21, such as Two Alliance Center, the roughly 5, square foot office tower completed in 29 is now nearly 9 percent leased. Terminus 2, the 565, square foot tower also delivered in 29, is similarly nearing full capacity at 91 percent leased with over 25, square feet of space expected to be occupied over the next six months. Midtown has also netted a fourquarter cumulative positive absorption figure, albeit smaller than BuckheadÊs at 53,953 square feet, since midyear 21. Midtown, the smallest of the three urban submarkets, has been more up and down over the past several quarters in terms of vacancy rate but is currently.26 percentage points lower than the third quarter of 21, having fallen from percent to percent. Downtown continues to be the most affordable office space in the urban corridor with average rental rates of $2.96 per square foot, about 4 cents lower than the previous quarter and nearly 5 dollars less than either Buckhead or Midtown. Downtown does stand to gain from the proposed multimodal station to be located near the southern end of the central business district, which will tie together bus, rail, and streetcar transportation for commuters living within as well as outside the city. Yeartodate absorption in the largest of the urban submarkets is negative 177,893 square feet, but it continues to have the highest occupancy rate in the urban corridor at 8.33 percent. Notable Lease Transactions RICHARD BOWERS & CO. Lessee Property Size (SF) North Highland Terminus 2 69,922 Regions Bank Atlantic Center Plaza 62,893 Siemens Royal 4 48,43 Kemira 1 Parkwood Cir 45,95 New Prosys Corp Corners Office Park 42,296 Windham 363 Peachtree 35,817 Brannon, P.C. Title Max Brookside One 27,644 Midyear market numbers reflected... the highest absorption since the first quarter of 28. Office Space by Building Classification Total Vacany Net 2nd Quarter 4Qtr Total Rental Urban Corridor Class A 3,589,829 6,679, % 217,321 1,278,444 $26.5 Class B 14,561,515 3,524, % (35,261) (625,723) $19.2 Class C 1,948,797 49, % (27,676) (98,692) $16.81 Total 47,1,141 1,614, % 154, ,29 $23.79 Suburban Class A 48,249,6 8,178, % 8,335 (491,649) $21.75 Class B 33,761,684 6,949, % 54,326 94,7 $17.34 Class C 6,291,555 1,743, % 46,222 (221,755) $14.27 Total 88,32,299 16,872, % 18,883 (619,397) $19.53 Total Market Class A 78,838,889 14,858, % 225, ,795 $23.59 Class B 48,323,199 1,474, % 19,65 (531,716) $17.85 Class C 8,24,352 2,152, % 18,546 (32,447) $14.87 Total 135,42,44 26,597, % 263,267 (65,368) $21.1 FIVE

6 Atlanta Office Market: Comparison by SubMarkets Total Market Total Occupancy Urban This Qtr YTD Rental Downtown 16,845,572 3,313, % (68,3) (177,893) $2.96 Midtown 14,981,31 3,547, % 12,88 (24,729) $25.51 Buckhead/Lenox 15,273,538 3,752, % 119,579 49,98 $25.22 Urban Totals 47,1,141 1,614, % 154,384 27,286 $23.79 Suburban Airport/South Decatur GA4 North I2W/Greenbriar 3,239,696 1,142,79 15,787, ,53 86,93 214,639 2,459,535 15, % 81.22% 84.42% 67.3% 18,269 6,217 79,392 (22,358) 7, ,843 (2,44) $16.39 $19.85 $19.28 $13.1 The urban corridor is set to continue on an upward swing, as tenants take advantage of discounts in rental rates to move closer to business, financial, and transportation hubs. Suburban Submarkets The suburban markets posted positive absorption of 18,883 square feet in the second quarter, the first positive quarter since the beginning of 21 when the market absorbed 222,627 square feet of office space. Yeartodate absorption still shows the suburbs 232,427 square feet in the red due mainly to massive losses in the I285/GA 4 submarket. Rental rates in the suburbs have decreased 2 cents over the last year, down from $19.73 per square foot in the second quarter of 21 to in the current quarter. The I285/GA 4 submarket, largest of all the Atlanta office markets at over 22 million square feet of inventory, has lost nearly 6, square feet of occupancy since the beginning of the year and a total of 729,283 square feet over the last four quarters. This represents a 3.23 percentage point loss in occupancy since the beginning of the third quarter of 21. The addition of the halfdiamond interchange at Hammond Drive SIX I285/GA4 I285/I85/Northlake I285E/Stone Mtn I75 Corridor 22,565,443 4,259,72 32,92 1,127,333 4,686,611 64,678 41, , % 84.96% 87.12% 86.88% (17,33) 16,222 (12,7) (598,954) 1, Change from MidYear 21: Increase Decrease No Change $21.73 $17.29 $13.69 $21.98 I75/I285 18,857,31 3,563, % 82,43 112,244 $2.28 I75N/Marietta/JF 3,169, , % 8,757 (52,877) $18.48 NE ExpresswayNorth 4,76,932 1,217, % 1,662 (14,298) $18.11 NE ExpresswaySouth 4,663, , % 38,427 16,235 $18.38 Peachtree Corners 8,86,542 1,767, % 39,844 55,581 $16.6 Suburban Totals 88,32,299 16,872, % 18,883 (232,427) $19.53 Total/W. s 135,42,44 27,486, % 263,267 (25,141) $21.1 Existing Space By Class

7 Class A Class B Class C Occupancy Rental Occupancy Rental Occupancy Rental 1,423,19 2,56,764 2,695, % 76.6% 74.27% $23.25 $28.1 $ ,683, , , % 74.92% 78.15% $18.51 $18.85 $ , ,933 63, 8.13% 78.79% 74.79% $16.51 $16.53 $ ,679, % $26.5 3,524, % $ , % $ ,68 66,823 1,715, % 83.5% 85.51% n/a $19.39 $21.91 $2.47 n/a 31, , ,822 7, % 79.96% 81.8% 86.% $15.96 $18.73 $15.69 $23. 32,89 98, % n/a 1.% 63.28% $14.18 n/a $16.5 $11.4 2,831,468 93,34 19,138 1,6 81.% 82.14% 65.% 95.% $23.26 $19.84 $21.25 $3. 1,333, , , % 86.1% 1.% 85.9% $19.71 $17.55 $12.36 $ , ,58 22,2 12, % 84.47% 82.73% 84.% $13.23 $16.21 $11.9 $17. 1,649,182 48, ,98 25, , % 73.79% 75.83% 94.68% 85.36% $22.46 $2.9 $19.71 $21.7 $ ,762, , , ,534 1,145, % 8.25% 71.8% 89.5% 77.5% $16.82 $17.36 $15.7 $18.3 $ ,977 56,48 9,547 26, , % 81.68% 7.% 94.14% 56.24% $13.31 $15.8 $14. $15.59 $ ,178, % $ ,949, % $ ,743, % $ ,858, % $ ,474, % $ ,152, % $14.87 With no new deliveries for occupancy rates should rise significantly. 4 will increase accessibility to the heart of the submarketês office space, which hasnêt had net absorption in excess of 5, square feet since second quarter 28. Some sectors of the suburban market have been performing well, with GA4 North showing 79,392 square feet of positive absorption in the second quarter and 264,843 square feet yeartodate. With three consecutive quarters of positive absorption, GA4 North has netted 2, square feet of new occupancy since the beginning of the third quarter 21. As a result, vacancy rates are the lowest since the third quarter 28 having fallen to percent in the last quarter, down from a high of percent in the third quarter of 21. Rental rates in North Fulton have also been stable over the last year, remaining unchanged since a 1 cent per square foot drop from $19.38 to $19.28 per square foot in the fourth quarter of last year. The I75/I285 submarket led the suburban markets in absorption for the quarter, with 82,43 square feet of positive absorption. This is the second largest office market in Atlanta with 18,857,31 square feet of total inventory, and is also positive for the year showing 112,244 square feet of absorption yeartodate. Rental rates in this part of the city continue to decline, with the overall submarket rate falling another 8 cents to $2.28 this quarter 26 cents off the average rate in the second quarter 21. This is the lowest the average rate has been since the second quarter of 26. SEVEN

8 Annual and by SubMarket Urban Downtown Midtown Buckhead/Lenox 2nd Qtr. 27 2nd Qtr. 28 2nd Qtr. 29 2nd Qtr. 21 2nd Qtr. 211 (279,636) 176, , % 14.32% 13.36% 581,477 18,425 24, % 16.7% 16.42% (35,451) 18,541 93, % 18.5% 15.72% (92,733) (239,933) (361,653) 18.64% 24.4% 28.98% (173,49) 53, , % 23.68% 24.57% Urban Totals 661, % 623, % 166, % (694,319) 23.71% 554, % Suburban Airport/South Decatur GA4 North I2W/Greenbriar 11,651 (25,558) 891,995 39, % 11.25% 14.82% 15.93% (47,669) 61, ,554 (27,286) 25.98% 1.66% 14.16% 24.43% 187,625 (34,398) (9,485) (8,844) 21.19% 13.67% 16.17% 27.19% (11,457) (63,761) (16,799) % 19.25% 16.84% 27.9% 37,184 5, ,763 (18,883) 26.57% 18.78% 15.58% 32.97% I285/GA4 I285/I85/Northlake I285E/Stone Mountain I75 Corridor 429,64 18,811 18,129 29, % 18.12% 14.44% 4.7% 555, ,14 (35,229) 23, % 15.53% 1.3% 2.6% (962,433) (118,87) (83,721) (57,375) 16.72% 13.95% 12.84% 7.68% (248,13) (33,46) (7,99) (31,99) 17.54% 14.73% 15.33% 1.52% (729,283) (13,132) 7,855 (29,351) 2.77% 15.4% 12.88% 13.12% I75/I285 I75N/Marietta/Johnson Fy NE ExpresswayNorth NE ExpresswaySouth Peachtree Corners (155,74) 157,49 26,55 99,267 84, % 13.81% 24.33% 1.6% 17.88% 94,934 86, ,583 (38,15) 158, % 14.53% 18.72% 11.41% 16.43% 1,137 (72,262) (142,244) (17,588) (4,495) 18.31% 16.81% 24.27% 11.79% 22.18% (61,39) (138,789) 132,85 (4,353) 4, % 21.19% 23.23% 11.88% 22.13% (48,587) (5,749) (111,357) 11,427 21, % 22.79% 25.56% 9.52% 21.86% Subrban Totals 1,94, % 1,492, % (1,718,89) 17.5% (669,98) 18.41% (619,397) 19.11% Total With s 2,565, % 2,116, % 1,552,421) 17.5% (1,364,227) 2.25% (65,368) 2.3% Agents Jonathan Alford, Michael Bailey, Ernie R. Baker, Thomas Barrow, Richard Bowers, SIOR, Rick Bowers Jr., Linda Burns, Michael Cheney, David Clappier, Daniel Gannon,Drew Griffin, Sean Hathcock, Randy Hoye, Jenna Hubbard, Bill Johnson, CCIM, Greg Kindred, Jeff Kinton, Chet Lacy, Anthony Lois, Dean Lord, Charles McDonald, Jeff McMullen, Paul Mendel, Donnie Miller, Angela Moore, Tim Moresco, David Morgan, Ray Nestlehutt, Ash Parker, Joe Puleo, Hugh Rader, Jeff Searcy, Michael Sepsick, George Smeltzer, Richard L. Smith Jr., CCIM, Tarkenton Thompson, Park Williams, Grahame Wood, Vernon L. Wright Research Russ Hardeman, Jeremy Harrison, Ashley Wroblewski Administrative Sandra Bowers, Alison Garland, Deborah Gleason, Catherine Huston, Cynthia Lloyd, Tasana OwenMinshew, Dianne Oeser, Jeanel Savoy, Mary Sorrells Carter, Ginger Toothman, Keri Whayne Broker Richard E. Bowers, SIOR, President 26 Peachtree Street, Suite 24, Atlanta, Georgia 333 Phone: Fax: