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Metro Atlanta’s leasing activity has been trailing last year’s pace, butmany deals are still getting done as tenants play musical chairs toleverage discounted pricing conditions. At the end of third quarter 2011,7.0 million square feet has been transacted for so far this year across

 Atlanta. As is typical, tour velocity moderated during third quarter’s slow

summer months, but is expected to pick up near year-end. Theunemployment rate sits stubbornly above 10.0 percent and the overall

 job recovery is stuck in neutral as uncertainty about the U.S. and globaleconomies remain. There have been pockets of improvement,particularly in the high tech, healthcare and insurance sectors, wheresome expansion has been occurring in the last nine months. However,with no game-changing factors on the horizon, market demand is likelyto see only incremental improvements for a handful of submarkets in thenear term. Rental rates have been and should continue to fluctuatealong the bottom of the trough for most properties in the coming months.

 After rising in three consecutive quarters, the level of office sales activitywas mostly unchanged during third quarter. The recession dried up

capital markets activity for several years, but the last 12 months haveseen total sales volume increase from those lows as investment dollarscome off of the sidelines. Much of the recent activity has centered ondistressed assets, but some middle market buildings and core stableassets have found buyer-seller agreement on pricing as well.

Leasing activity

Buckhead 

• Sun Trust Robinson Humphrey is consolidating a secondaryDowntown location to the Atlanta Financial Center – South Tower ina new lease for 135,000 square feet.

• Also at Atlanta Financial Center, Morris Manning & Martin renewed

its lease with a small expansion for a total footprint of 120,000square feet in the East Tower.

• In a preparation for growth, State Bank Financial Corporation isrelocating and expanding by several floors to 73,000 square feet withprominent signage at the Lenox Building.

Downtown

• At Sun Trust Plaza, McKenna Long & Aldridge will maintain its163,000-square-foot lease, committing to a long-term renewalthrough 2028.

• Engineering group, Newcomb & Boyd, signed an extension for 35,000 square feet at Sun Trust Plaza Garden Offices, where it willmaintain the same footprint.

Cumulative leasing activity

slower so far in 2011

Midtown

• Arnall Golden Gregory renewed for 122,000 square feet at AtlanticStation, 171 17th Street, giving back 13,000 square feet in areconfiguration of space that will allow them to bring additionalattorneys on board.

• SunTrust’s Atlanta Bank will be moving to Campanile Plaza, takingdown 95,000 square feet in a contraction out of a Downtown buildinthat it sold to Georgia State University.

• The Proscenium has lured Paul Hastings Janofsky and Walker fromBank of America Plaza to a new lease for 75,000 square feet; the lafirm’s footprint will remain roughly the same.

Central Perimeter 

• Popeye’s parent company, AFC Enterprises, is relocating within thesubmarket to North Terraces, where it will expand by 20,000 squarfeet with its new lease totaling 56,000 square feet.

• Also at North Terraces, technology group, Ventyx, is moving from tCumberland area into 55,000 square feet in a lease that includes a10,000-square-foot expansion.

• Several new mid-sized transactions were completed at Perimeter Crossing, including Apex Systems, Children’s Orthopedics of Atlanand Walgreen’s Corp. for a total of 29,000 square feet.

North Fulton

• New ProSys Corporation is relocating from a flex building to TheCorners Office Park in a new lease for 43,000 square feet; the ITconsultancy group will grow by about 10,000 square feet when itmoves.

• At Brookside 300, Grainger extended a three-year lease for 30,000square feet and gave back 6,000 square feet of space.

• Namasco Corporation renewed and expanded at Mansell Overlook500, its new footprint totaling 29,000 square feet.

Northlake

• At Century Center, the U.S. Federal Bureau of Investigation reneweits lease for 136,000 square feet.

 Atlanta . Q3 2011

Tour activity

Leasing volume

Rents

Concessions

Sales volume

Constructiondeliveries

Constructionstarts

 Arrows represent change from prior quarter 

Office Highlights

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Jones Lang LaSalle • Atlanta Office Highlights • Q3 2011

©2011 Jones Lang LaSalle IP, Inc. All rights reserved. No part of this publication may be reproduced by any means, whether graphically, electronically, mechanically or otherwise howsoever, including

without limitation photocopying and recording on magnetic tape, or included in any information store and/or retrieval system without prior written permission of Jones Lang LaSalle. The information

contained in this document has been compiled from sources believed to be reliable. Jones Lang LaSalle or any of their affiliates accept no liability or responsibility for the accuracy or completeness of the

information contained herein and no reliance should be placed on the information contained in this document.

Northeast 

• Rock-Tenn Corporation is expanding outside of its owned campus inNorcross and has newly leased 70,000 square feet at HamptonGreen.

• At Peachtree Ridge, Pond & Company renewed its lease for 37,000square feet.

Northwest 

• Graphic Packaging will be relocating from several older flex buildingsin Marietta to 110,000 square feet of Class A space at RiveredgeSummit.

• The top two floors of Platinum Tower have been leased by FirstOption Mortgage, which will maintain the same footprint, but gainbuilding signage as part of the new deal.

• Wells Fargo expanded by 22,000 square feet when it consolidatedfrom another location as part of a renewal for 38,000 square feet atOverlook III.

Tenants in the market

Buckhead 

• Ameriprise Financial continues to consider expansion options by

60,000 square feet.• Morgan Stanley is still in the market with a 60,000-square-foot

requirement.• Liberty Mutual is shopping for 40,000 square feet to house its IT

group.Downtown

• Balfour Beatty Infrastructure is shopping for 20,000 square feet.• Cox Curry is still in the market with a need for 16,000 square feet.• Gude Management is considering a 10,000-square-foot expansion.Midtown

• The Coca-Cola Company has 125,000 square feet of temporaryspace under consideration in anticipation of a massive renovationproject slated for its 1 Coca-Cola Plaza headquarters building.

• The U.S. FDIC is still in the market with an 80,000-square-footrequirement.

• Clarkston Consulting is shopping for 7,000 square feet.Central Perimeter 

• AmeriCold Logistics remains in the market with a 75,000-square-footrequirement and is also considering Buckhead and North Fulton.

• Beazer Homes is in the market for 60,000 square feet.• GE is looking for 60,000 square feet.• Amerisave has a 50,000-square-foot requirement.North Fulton

• Verint Systems is currently shopping for a 120,000-square-footrequirement.

• CareerBuilder.com entered the market and is looking for 100,000square feet.

• RedPrairie is still out for 100,000 square feet.

Northlake

• Emory Orthopaedics and Spine Center entered the market with a100,000-square-foot requirement.

• Georgia Perimeter College has 20,000 square feet under consideration.

• Education Affiliates is shopping for 20,000 square feet.Northeast 

• Primerica is still in the market with a 300,000-square-foot requiremen• The Muscular Dystrophy Association continues to shop for 35,000

square feet.• The Sanford-Brown Institute is looking for 30,000 square feet.Northwest 

• IBM will be consolidating its footprint and continues to look for up to200,000 square feet.

• Looking for 150,000 square feet, Travelport is out in the market.• Manhattan Associates is still in the market with a requirement for 

120,000 square feet.• Gentiva Health Services is looking for 100,000 square feet .

Sales activity

Midtown• In July 2011, the City of Atlanta sold 675 Ponce de Leon Avenue (2.0million square feet, Class B) to Jamestown Properties for $15.4 millio(nearly $8 per square foot). The latter agreed to pay an additional$11.6 million if it reaches certain milestones tied to the project’ssuccess in the coming years.

North Fulton

• Rosemount Realty bought a four-building portfolio (399,641 totalsquare feet, Class A) from LaSalle Investment Management in July2011 for $53.5 million ($135 per square foot). The properties were6455 East Johns Crossing, 3585 Engineering Drive, 6625 TheCorners Parkway and 5707 Peachtree Parkway.

Northwest 

• Highwoods Properties Inc. purchased 3350 Cumberland Circle SE(502,519 square feet, Class A) for $86.3 million ($160 per square footfrom GE Asset Management in September 2011.

• Abbott Products Incorporated sold 793 Sawyer Road (112,000 squarefeet, Class A) to Osmotica Pharmaceutical Corporation for $3.3 millio($29 per square foot) in August 2011.

Construction activity

• At the end of third quarter 2011, Atlanta had no new office productunder construction.