MARKET INSIGHTS AND RUMORS

• A Tenant Mystery That Might Have Saved A Building – Quanta Power Solutions, LLC, one of Alabama's fastest-growing engineering and construction firms, needed up to 100,000 SF in late 2025. They leased three floors at 3500 Colonnade while pursuing a floor at 3700 Colonnade, even as those buildings were headed back to the lender/special servicer. For unclear reasons, Quanta pulled out of the Colonnade entirely in May, instead taking the full 98,000 SF building at 2500 Corporate Drive in Meadow Brook as "temporary" space. Quanta's lease might have saved the Colonnade from foreclosure, but special servicers aren't known for flexibility.

• Midtown is Tight as a Tick – Despite troubles in other parts of the Birmingham office market, the Midtown market is healthy and has very little available space, especially larger blocks (10,000+ SF), which means rents will continue to rise. This is very counter to what we see in the CBD and Hwy. 280 markets.

• The Colonnade Changes Again – After 20+ years with CBRE, EGS/Cushman & Wakefield was awarded the property management and leasing contract for the Colonnade buildings approximately four months ago. The property was foreclosed on 3-4 weeks ago. Based on rumors, the special servicer has now hired Colliers to lease and manage the buildings.