Q2 2010 | BUCKHEAD
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES
Total SF
19,728,911
1,200,000
31%
Vacancy Rate
24.7%
26%
YTD Net Absorption
29,488
1,000,000 800,000 600,000
21%
400,000
0 (200,000)
YTD Deliveries
915,626
16%
200,000
11% 2Q09
3Q09
4Q09
1Q10
(400,000)
6% Absorption
Deliveries
Under Construction
0
2Q10
Avg. Class A Rate
$25.67
Source: CoStar Property
Vacancy
MARKET INDICATORS Q2 2010
NEXT QTR
UPDATE Recent Transactions in the Market SALES ACTIVITY
VACANCY PROPERTY ADDRESS
NET ABSORPTION CONSTRUCTION RENTAL RATE
—
—
—
SALE PRICE
SIZE SF
PRICE / SF
BUYER
Tower Place 200 (‘09 Forc.)
$32,000,000
259,888
$123.13
CW Capital
3166 Mathieson Dr. (‘09)
$3,350,000
8,500
$394.12
Forum Inv. Properties
38 Old Ivy-3 & 4 (‘09)
$2,058,000
6,256
$328.96
ISP Sports
66 Lenox Pointe (‘09)
$880,000
3,240
$182.07
The Issa Law Firm
Buckhead
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Greenberg Traurig
Terminus 200
110,329
Class A Lease
Novelis
Two Alliance Center
100,200
Class A Lease
Omnicom Group
One Alliance Center
100,000
Class A Renewal
Wells Fargo
Prominence in Buckhead
57,704
Class A Lease
•
Buckhead office absorption is up 32% from this time last year. Second quarter’s positive absorption can be mostly attributed to a number of small occupancies ranging between 7,000 to 13,000 square feet. The larger move-ins for the quarter mostly consisted of relocations within the submarket which in some cases resulted in a net loss of occupied space.
•
Office leasing remains strong in the submarket. Tenants with leases expiring in the next couple of years, and requiring a full floor of office space are looking at Buckhead office towers.
•
Concessions and allowances are averaging a year of free rent and between $60-$80 per square foot on a 10-year deal for Class A office space in the submarket; still among the highest in Atlanta.