1Q | Atlanta Buckhead Office | Market Report

Page 1

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.


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