Q1 2012 | BUCKHEAD
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 22%
350,000
21%
300,000
20%
Square Feet
400,000
250,000
19%
200,000
18%
150,000
17%
100,000
16%
50,000
15%
0
14% 1Q11
2Q11 Absorption
3Q11
4Q11
Deliveries
Total SF
20,551,189
Vacancy Rate
18.3%
YTD Net Absorption YTD Deliveries
0
Under Construction
0
Avg. Class A Rate
1Q12
104,345
$24.66
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q1 2012
UPDATE Recent Transactions in the Market
Q2 2012
SALES ACTIVITY VACANCY NET ABSORPTION CONSTRUCTION
—
RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
3399 Peachtree
$59,300,000
348,152
$170.33
Parmenter Realty
—
3314 Peachtree Rd./Land
$9,000,000
9,187
$979.65
Kurkin Forehand Brandes
—
3330 Peachtree Rd.
$5,500,000
62,499
$88
Pope & Land
Buckhead
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
AmWINS Colemont
3630 Peachtree
28,259
Class A Lease
Citigroup
The Pinnacle
27,126
Class A Lease
Asurion
Piedmont Center 6
20,000
Class A Lease
Stephens Inc.
3344 Peachtree
12,475
Class A Lease
•
Buckhead ended the first quarter of 2012 with just over 104,000 SF absorbed. Move-in activity was somewhat quiet with Kids II accounting for almost all of the space filled in the quarter at 102,818 SF.
•
The office vacancy rate in Buckhead has seen the largest drop of any other submarkets compared to this time last year. Over this period, Buckhead’s vacancy rate dropped 3.3%.
•
Buckhead’s office leasing activity remained steady in first quarter; however, the submarket saw less activity than other areas such as Central Perimeter, North Fulton and Northwest Atlanta. This could be due to the number of more affordable space options available in these other areas.
•
Buckhead is the most prominent submarket where previously signed transactions, some dating over a year ago, are now taking occupancy. Kids II was an example of this. The submarket’s absorption levels will be boosted by this move-in activity over the next six months.