High Technology Industry

Office Highlights
Atlanta . Q1 2012
Atlanta overview
Atlanta houses 13,000 technology companies that employ close to 250,000 workers and the industry had an in 2011 had an economic impact of $113.1 billion in sales. The metro benefits from a healthy ecosystem that includes 24 business incubator programs and world class educational institutions like Emory and Tech that collaborate on emerging innovations. Atlanta has a strong legacy in internet technology, particularly for the internet security, financial tech and healthcare IT sectors. Industry giants like IBMs Internet Security Systems, McKesson Healthcare IT, Kimberly-Clark Healthcare IT, NCR, First Data and Global payments already call Atlanta home. From an office leasing perspective, high-tech firms have had a big impact in Atlanta, specifically so in the North Fulton and Midtown submarkets. North Fulton has been successful in luring call centers and other back office and IT operations with its aforementioned fiber-optic network, while the western edge of Midtown is the place to be for creative digital media. Many of these firms have unconventional office environments and have been drawn to the boutique loft space that has recently proliferated in redeveloped industrial space there. During the cloudy post-recessionary economic years, technology has been one of the bright spots leading the edge of the recovery for both employment growth and real estate expansion. Given Atlantas healthy technology infrastructure, increased demand by these users is likely to continue.

United States scorecard

Annual employment growth (Q1 2012 vs. Q1 2011)

5.2%
High-tech services High-tech IPO activity 2011 Volume

2.1%
Office-Using 2010 Volume

$8.6B
38 deals High-tech venture capital funding 2011 2010

$3.6B
27 deals

$15.3B $11.3B
Montral
Gaming grows; Eidos expands, adds to cluster w/Ubisoft, EA, A2M

Market highlights United States and Canada

Seattle
Amazon buys land; plans to build 3.0 million sf campus

Vancouver
Hollywood north: Sony, Pixar, Technicolor expand

Toronto
Google, Facebook, AJB Software grab more space

Boston
Tech firms squeezed out of Cambridge into Seaport

Portland
eBay, Dotster, Monsoon expand; Adobe, NetApp plan datacenters
Vancouver Seattle Montral Portland Toronto Pittsburgh Denver San Francisco Silicon Valley Chicago Boston New York

New York
Cornell will build Roosevelt Island campus to feed high-tech industry

San Francisco
Salesforce.com,Macys.com and Riverbed lease over 800,000 sf

Chicago
1871 Chicago digital innovation center opens in Merchandise Mart

Silicon Valley
Apple expands again with 157,000 sf lease in Sunnyvale

Philadelphia Pittsburgh Baltimore More incubator offices open to Washington, attract start-ups DC

Los Angeles
YouTube going to Spruce Goose Hercules Campus in Playa Vista
Los Angeles Orange County San Diego Austin Houston

Raleigh-Durham

Philadelphia
Tech growth focused on software for eds and meds

Atlanta

Orange County
Amazons a2z expanded into 82,000 sf at Irvine Spectrum

Baltimore
South Florida

Millennial Medias stock price doubles in IPO debut

San Diego
San Diego Tech Center leases 70,000 sf to high-tech tenants

Washington DC
Tech industry growth mitigating federal workforce contraction

Denver
Micron expands in Longmont; will open engineering/design center

Austin
Apple plans $304 million campus, 3,600 new hires in Northwest

Atlanta
Multiple tech tenant expansions across the metro

South Florida
Citrix Systems expands in Cypress Creek by 40,000 sf

Raleigh-Durham
Red Hat and Cree Inc. post double digit Q1 stock price growth

LOCAL MARKETS

Jones Lang LaSalle Americas Research High Technology Industry Office Highlights Atlanta Q1 2012 2

Atlanta market activity

Tenants in the market
Wipro Buckhead 130,000 sf Matrix Resources Central Perimeter 45,000 sf

Annual rent growth by high-tech submarket

Silicon Valley-Mountain View San Francisco-SOMA Boston-Cambridge Seattle-Lake Union

EBEX Midtown 35,000 sf

Asurion Buckhead 25,000 sf

New York-Midtown South Vancouver-Yaletown Denver-Northwest (Boulder)

Lease comparables

SecureWorks Concourse Center VI Central Perimeter 75,000 sf Surgical Information Systems 555 Northpoint Center E North Fulton 50,000 sf

RouteMatch Software One Atlantic Center Midtown 23,000 sf Veeam Software Northwinds II North Fulton 26,000 sf

Pittsburgh-CBD Seattle-Bellevue CBD Washington DC-East End Houston-West Loop Portland-Pearl District Austin-Citywide San Diego-North Cities Montral-Midtown

Office property clock

Current market conditions

Los Angeles-Westside Baltimore-Citywide Toronto-KWC South Florida-Miami

Peaking market Rising market

Falling market Bottoming market

Chicago-CBD Philadelphia-Citywide Raleigh-Durham-RTP/RDU Atlanta-Citywide Orange County

Metro Atlanta

-20%

0%

20%

40%

60%

*Q112 vs. Q111 full service gross overall average asking rent growth

Julia Georgules +1 415 354 6908 julia.georgules@am.jll.com One Front Street, Suite 1100 San Francisco, CA 94111 +1 415 395 4900 www.us.joneslanglasalle.com

Sarah Dasher +1 404 995 6531 Sarah.dasher@am.jll.com 3344 Peachtree Road, Suite 1200 Atlanta, GA 30326 +1 404 995 2100

2012 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.