Downtown Atlanta

ATLANTA Downtown

Where It’sAt!

DOWNTOWN

Makes HEADL INES

Georgia State, developers, complete purchase of Turner Field – Atlanta Business Chronicle Startup CallRail expands in downtown Atlanta, plans 100 jobs – Atlanta Business Chronicle South Downtown could get massive boost with eight-block development – Atlanta Business Chronicle Downtown’s Kiser Building to be reborn as apartments – Curbed Post Properties develops its first Downtown project – Atlanta Business Chronicle Why tech tenants are attracted to Atlanta’s urban core – LinkedIn Study: Atlanta is nation’s 3rd greenest city – Atlanta Business Chronicle The Stitch: An ambitious proposal to build parks and housing above the Downtown Connector – Atlanta Magazine Incubator for women entrepreneurs coming to Flatiron Building – Atlanta Business Chronicle

CONTENTS Table Of

Overview

Downtown Investments

Major Projects Downtown

Why

DOWNTOWN?

26,850 Population

154,767 Downtown Jobs

50,972+ Georgia State Students

40,527 average MARTA weekday ridership

$4.9B Investment Pipeline 2017-2022

88 Average Walk Score

Q3 2017 Downtown Submarket SNAPSHOT

$

59,033 SF NET ABSORPTION

21% VACANCY RATE • Down 105 BPts YoY • Lowest since 2009

$26.75 OVERALL RENTAL RATE • Up 13.3% from one year ago

-0- SF NEW BUILDING DELIVERIES • 124,000 SF under construction

108,404 SF LEASING ACTIVITY • Down 6% from Q2

-0- SF INVESTOR SALES

Data as of Q3 2017 | Source: Cushman & Wakefield Atlanta Research

Recent Downtown DEALS

SIGNIFICANT OFFICE SALES Building

LARGEST AVAILABLE CONTIGUOUS BLOCKS CLASS A OFFICE Square Feet Building Asking Rate 1 305,127 Bank of America Plaza $32.50-$35 FS

Buyer

Sales Price

Date

Norfolk Southern Former HQ 99-125 Spring St

99-125 Spring St Atl Owner, LLC $25M ($62/sf)

Sept. 2017 Sept. 2017 June 2017 May 2017

The Grant Building

Kramer Real Estate

$7M ($47/sf)

American Cancer Society

Carter Validus Zeller Realty

$166M ($167/sf) 79.4M ($128/sf) $267.5M ($163/sf)

34 Peachtree (possible conversion to hotel)

100 Peachtree 191 Peachtree

2 161,233

$19.50 FS

Banyan Street Capital Newport US Real Estate

October 2016

Over 50 South Downtown Buildings SIGNIFICANT OFFICE LEASING Tenant

Estimated $500M Multiple 2017 dates

3 149,821 Bank of America Plaza $32.50-$35 FS 4 130,629 250 Williams Street $23.50-$24 FS

Building

Square Feet

Sign Date

5 126,464 Harris Tower @ Peachtree Ctr.

$23.50 FS

Anthem

Bank of America 100 Peachtree SunTrust Tower Peachtree Center Centennial Tower

148,192 100,000 65,000 49,812 20,000 38,800

3Q 2016 3Q 2016 2Q 2016 1Q 2017 3Q 2017 3Q 2017

Georgia's Own Credit Union

Drew Echl Farnham

Atlanta Regional Commission

C.H. Robinson

Boston Consulting

100 Peachtree

Downtown Development PIPELINE

Under Construction/Planned Development (2017-2020)

Recently Completed Development (2016-2017) Total investment $593 Million Office Space 72,190 SF Retail Space 79,070 SF Institutional Space 287,500 SF Student Beds 1,408 Housing 171 units Hotel 313 rooms

Total investment

$4.3 Billion

Office Space

1.8 Million SF

Retail Space

1.5 Million SF

Institutional Space

2,767,000 SF

Student Beds

1,390

Housing

10,347 units

Hotel

2,720 rooms

Downtown Office Buildings Under Construction

Project Name

Address

SF

Type Estimated Delivery

The Willoughby 746 Willoughby Way NE 61,000 Class A

2018

The Stockade

752 Glenwood Ave

38,000 Class B

2018

The Stable

750 Glenwood Ave SE 25,000 Class B

2018

Downtown is the Region’s MOST URBAN Environment

1.8 Million SF of commercial space 895 retail shops, eateries & bars 9 MARTA stations Over 3 million hotel room nights demanded 15 million visits annually to Downtown

Downtown is experiencing a once in a generation rate of growth (development pipeline of over $4.9 billion in new projects) Downtown Core has potential to see significant population & employment growth over the next 15 years Potential to add over 15,000 residents & 30,000 jobs

Downtown

Downtown

Downtown EMPLOYMENT

COMPANIES WITH DOWNTOWN HQ Company

Address

Site Type

Coca-Cola Co

1 Coca Cola Plz NW 80 Jesse Hill Jr Dr SE

HQ HQ HQ

Grady Health System/Memorial Hospital

Georgia State University

33 Gilmer St SE

Emory University Hospital Midtown

550 Peachtree St NE 133 Peachtree St NE 191 Peachtree St NE 241 Ralph McGill Blvd NE

Single Site

Georgia-Pacific LLC

HQ

Deloitte LLP

Regional HQ

Georgia Power Co

HQ HQ HQ HQ

Turner Broadcasting System Inc. Atlanta Medical Center/WellStar

1 CNN Ctr NW

303 Parkway Dr NE

CNN News Group

1 CNN Ctr NW

EY

55 Ivan Allen Jr Blvd NW 303 Peachtree St NE 265 Peachtree Center Ave NE

Regional HQ

KPMG LLP

Branch Branch Branch

Marriott Marquis Hotel Hyatt Regency Atlanta

265 Peachtree St NE 250 Williams St NW

InComm Inc

HQ

Omni Hotel at CNN Center

100 CNN Ctr NW

Regional HQ

Hilton Atlanta

255 Courtland St NE 250 Williams St NW

Branch

American Cancer Society

HQ HQ

Southern Co

30 Ivan Allen Jr Blvd NW 600 Peachtree St NE

Bank of America SunTrust Bank

Regional HQ

303 Peachtree St NE

HQ HQ

Georgia World Congress Center

285 AY Blvd NW

Westin Peachtree Plaza

210 Peachtree St NW 100 Decatur St SE 100 Peachtree Street

Branch Branch

Georgia State University Library Georgia’s Own Credit Union

HQ (2018 projected)

1,800 jobs 800 jobs Downtown NEW EMPLOYMENT

375 jobs by 2020

200 jobs

230 jobs 500 over 10 years

70 jobs

INVESTMENTS

Investment in SOUTH DOWNTOWN

Total estimated investment: $500M Developer: Newport U.S. Size: 750K SF total (includes 325K SF of retail and over 50 buildings, encompassing 12 acres over 8 blocks) Transit: Five Points/Garnett MARTA Eastside TAD support: $8M Estimated completion Phase 1: 3Q 2021 Newport U.S. Real Estate Planning for Redevelopment

Fun Fact: The Rexall Drugstore once served as an album cover for Paul McCartney

Investment in SOUTH DOWNTOWN

Peachtree & Mitchell St.

Master plan for the district will preserve the culture & charm of the area along Peachtree, Forsyth, Mitchell & Broad streets dating back to the mid 1800s

Future

Now

Broad & MLK St.

Broad St. Reimagined

Future

Now Peachtree & Mitchell St.

Now

Future

Investment in

SOUTH DOWNTOWN

Underground Atlanta

Underground Atlanta Investment

Total estimated investment: $161M Developer: WRS Inc. Size: 12 acres (includes 325K SF of retail and 25,230 SF of office)

0.9"

Transit: Five Points MARTA Eastside TAD support: $6.5M Estimated completion: 4Q 2023

Investment in

The Avery Underground Atlanta SOUTH DOWNTOWN

Underground Atlanta Housing

Total estimated investment: $36.7M Developer: Prestwick Companies Size: 4-story (includes 180 units of affordable housing) Transit: Five Points MARTA Eastside TAD support: $3.6M Estimated completion: 3Q 2020

Investment in SOUTH DOWNTOWN

Mercedes-Benz Stadium

Total estimated investment: $2B Developer: GWCC & AMB Sports & Entertainment Group Size: 72,000-80,000 Seats Transit: GWW/Phillips Arena/CNN Center MARTA Contributions: City of Atlanta $200M in stadium bonds + tax revenues; State of GA $40M for parking expansion

Investment in SOUTH DOWNTOWN

Phillips Arena

Total estimated investment: $195M Developer: Atlanta Hawks Size: 18,118 Seats Transit: GWW/Phillips Arena/CNN Center MARTA Estimated completion: 3Q 2018

Investment in

SOUTH DOWNTOWN

The Gulch Redevelopment

Total estimated investment: $550M Developer: CIM Group Size: 80,000 SF Retail Transit: Five Points MARTA Estimated completion: 3Q 2018

Norfolk-Southern Former HQ

Office Courtyard Vision Investment in GSU

Turner Field Redevelopment Carter/Oakwood/GSU

Georgia State Stadium new home for Panthers football

GSU enrollment 50,972 in 2016 (up from 32,082 in 2015)

Plaza Vision

Office Courtyard Vision

Georgia State Stadium

Investment in ATLANTA STREETCAR

Atlanta Streetcar Vision

Total estimated investment: $1,093M Developer: City of Atlanta Size: 2.7 Mile Loop Transit: Peachtree Center MARTA Estimated completion: Long-term vision includes a N-to-S route from Brookhaven to Fort McPherson, and an E-to-W route from The King Center to Centennial Olympic Park

Investment in DOWNTOWN Peachtree Center 100 Peachtree The Grant Building

The Hurt Building

Ownership: Banyan Capital An ICON reborn! Renovations are officially underway, including a $40M estimated investment to include “The Hub,” and renovations to common areas and lobbies The Hub: a new vision for the plaza and retail will transform this landmark project and modernize it with stunning new finishes & a revamped retail lineup

Ownership: Zeller Realty Experiential programming underway Activate the plaza - blend the corporate environment into the vibrant Fairlie-Poplar

Ownership: Kramer Real Estate Investments & H2 Capital Invest $7M to upgrade and increase leasing from 50% Modernization will retain authentic features, including marble finishes Owner plans to return 100-year-old building (one of Atlanta’s first steel-framed skyscraper) to its former prominence

Ownership: Gamma Real Estate Planned $4M historic makeover to include exposing historic marble interior lobbies Modern, sustainable design to offer a diverse array of tenant space including contemporary lofts, co-working micro units and traditional offices suites

neighborhoods with public art, live entertainment & other programming The “SPUR” has launched an innovative spec office program on the 3 rd floor. Completion expected early 2018

New Starbucks opened on ground floor

Investment in DOWNTOWN

Medical Arts Building Renovation

Total estimated investment: $40M Developer: Cleveland-based Global X Size: 85,000 SF 15-story class A office Transit: Civic Center MARTA Estimated completion: 3Q 2019

Investment in SONO DISTRICT

Total estimated investment: $5.3M Developer: SoNo on Peachtree Size: 28,751 SF (four office buildings) Acres: 0.66 Transit: North Avenue MARTA 489, 493 & 495 Peachtree Street and 496 Courtland Street

Total estimated investment: $5.3M Total estimated investment: $10M Developer: Central Atlanta Progress Size: 30,000 SF Acres: 0.6829 Transit: North Avenue MARTA 477 Peachtree Street (former Peachtree-Pine Shelter)

PROJECTS DOWNTOWN

Downtown MASTER PLAN

The Downtown Master Plan presents 25 recommendations for goals to reach by 2030, including the following:

10,000+ trees planted

New bike lanes

New housing & retail

Revitalize concrete plazas into welcoming spaces (plants, art, etc.)

Downtown has 96,000 parking spaces with 30,000 unused on a daily basis – eliminate & consolidate parking lots & decks to drive more transit use

Preserving Downtown’s historic buildings

The STITCH

The Stitch: a “Cap” over the 1-75/85 Connector at Peachtree Street to construct a platform over the highway. The objectives:

Create a vibrant public realm with quality civic infrastructure, open spaces, sustainable living

Create urban greenspace & new development pad sites

Ivan Allen Jr Blvd

Generate opportunity for transit-oriented development at Civic Center MARTA station – reposition as major transit hub for the city Include a 3-acre greenspace with a market and art walk, mixed-use urban park and more

West Peachtree

Courtland St

Peachtree Ctr Ave

ARTS & ENTERTAINMENT District

A neighborhood activation & economic development project with these objectives:

Create diverse & active market place for commerce & entertainment

Create light, vitality & activity through multimedia signage

Support commercial investment & enhances public gathering spaces

Provide platform to market Atlanta as a premier host city

Reflect vibrancy, diversity & creativity of the City

Stimulate blank walls on buildings & parking decks with innovative & creative media techniques in an unified way

Increase economic activity, including real estate investment

Permit new/upgraded outdoor advertising signs

Promote Downtown’s many events

ARTS & ENTERTAINMENT District

Much of Downtown will be part of the new Arts & Entertainment District, with new signage guidelines that will allow for Times Square-style digital media & entertainment

CENTENNIAL PARK District

Centennial Olympic Park (COP) has become the center of dynamic downtown entertainment district via: New museums, attractions & commercial and residential development have contributed to an urban renaissance around the 21-acre park

Southern Company Amphitheater Completion August 2018

Fountain of Rings Plaza Completion December 2017

Economy boosted with more the $2.3 billion in new investments to date since 1996

New Special Event Center Completion January 2019

Bake Street Corner Completion August 2018

$725 million either under construction or in the pipeline

Paralympic Plaza Completion August 2018

West Lawn Promenade Completion December 2017

Special Event Center

GWCC 2020 VISION

7

4 5

3

2

6

10

12

8

811

1

9

New Development Renovations Upgrades & New Greenspace

2020 VISION GWCC

3

2

1

Convention Center 4-Star Hotel

Mercedes-Benz Stadium

Westside Greenspace

PATH Foundations Updates Decommission structure of the Metro Atlanta Chamber & return the 3 acres to greenspace Southern Co Amphitheater upgrade Centennial Olympic Park Event Facility – 8,600 SF (6K SF indoor, 2,600 SF outdoor terraced seating & restrooms) Centennial Plaza – new iconic artwork & legacy of the Centennial Olympic Games will function as a new gateway into both sides of the park’s greenspace Baker Street Corner – new gateway into the park aim to increase visibility and will open as a major entry point with a new water feature, sculpture and landscaping

8 7

4

5

10 9

GWCC Bldg. B & C 1M SF Contiguous Facility

GWCC Flooring Updates

6

11

12

GWCC Bldg. B $3M Renovation

ATLANTA Downtown

Where It’sAt!

CATHY SHEEHAN Senior Associate 404.853.5233 cathy.sheehan@cushwake.com

JOHN IZARD Executive Director 404.853.5311 john.izard@cushwake.com

www.cushmanwakefield.com www.cushwakeatlanta.com 1180 Peachtree Street NE, Suite 3100 Atlanta, GA 30309 | USA 404.875.1000

Thank you to the following information sources: Central Atlanta Progress Atlanta Business Chronicle Costar