Q1 2011 | BUCKHEAD
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS
Total SF
1,000,000
26%
Vacancy Rate
800,000
24%
600,000
22%
400,000
20%
200,000
18%
0
16%
Square Feet
NEW SUPPLY, ABSORPTION AND VACANCY RATES
(200,000)
1Q10
2Q10
Absorption
3Q10
4Q10
Deliveries
1Q11
14%
22,057,656 21.8%
YTD Net Absorption
217,151
YTD Deliveries
0
Under Construction
0
Avg. Class A Rate
$25.06
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q1 2011
UPDATE Recent Transactions in the Market
Q2 2011
SALES ACTIVITY VACANCY NET ABSORPTION CONSTRUCTION
—
RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
3344 Peachtree Rd.
$167,300,000
482,699
$346.59
Parkway Properties
— —
Buckhead
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Baker, Donelson, Bearman...
Monarch Plaza
43,537
Class A Renewal
Windham Brannon
3630 Peachtree
35,000
Class A Lease
Novelis
Two Alliance Center
25,030
Class A Expansion
Barnes & Thornburg
Prominence I
23,827
Class A Lease
•
Positive activity in Buckhead continues to carry over into the new year. After leading all office submarkets in absorption last year, Buckhead posted Atlanta’s second highest occupancy increase in First Quarter 2011 with 217,151 square feet filled.
•
Buckhead still has a large amount of vacant space available; and the highest office vacancy rate in Atlanta. Despite this, large contiguous blocks of space are in short supply. For prospects in the market seeking contiguous space over 75,000 square feet, only three options are currently available.
•
Nothing suggests Buckhead leasing activity will stray from its current path. As landlords begin tightening up on their incentive packages, however, other submarkets may now be able to compete against Buckhead for tenants.