1Q 2012 | Buckhead Atlanta Office | Market Report

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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.


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