Q2 2011 | BUCKHEAD
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES
Total SF
20,611,322
350,000
24%
Vacancy Rate
22%
YTD Net Absorption
20.6%
300,000
Square Feet
250,000 200,000
20%
150,000
340,684
YTD Deliveries
0
Under Construction
0
18%
100,000 50,000
16%
0 (50,000)
2Q10
3Q10
Absorption
4Q10
1Q11
Deliveries
2Q11
14%
Avg. Class A Rate
$25.02
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q2 2011
UPDATE Recent Transactions in the Market
Q3 2011
SALES ACTIVITY VACANCY PROPERTY ADDRESS
NET ABSORPTION CONSTRUCTION
—
—
RENTAL RATE
SALE PRICE
SIZE SF
PRICE / SF
BUYER
3344 Peachtree Rd. (‘10)
$167,300,000
482,699
$346.59
Parkway Properties
The Medici
$13,200,000
152,000
$86.84
Piedmont Office Realty
3330 Peachtree Rd.
$5,500,000
62,499
$88
Pope & Land
Buckhead
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Morris Manning Martin
Atlanta Financial Center
124,000
Class A Renewal & Expansion
State Bank
Lenox Building
73,000
Class A Expansion
North Highland Co.
Terminus 200
69,922
Class A Lease
Kaiser Permanente
Piedmont Ctr. 10
23,000
Class A Lease
•
Buckhead office absorption topped 130,000 square feet for the second straight quarter. For the year, Buckhead has seen the second highest amount of office space absorbed in the Atlanta market.
•
The continued increase in Buckhead’s office occupancy is due to activity from tenants moving into the newest office towers in the submarket. The leasing activity from a year ago is now paying off in the form of positive absorption.
•
As a result of Buckhead’s positive activity over the past year, the submarket no longer has the highest vacancy rate in the market. Going forward, this is expected to continue. Tenants such as Greenberg Traurig, The Reznick Group and Windham Brannon are scheduled to move into large blocks of space in the second half of the year.