Q2 2012 | BUCKHEAD
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS
Square Feet
NEW SUPPLY, ABSORPTION AND VACANCY RATES 400,000
22%
350,000
21%
300,000
20%
250,000
19%
200,000
18%
150,000
17%
100,000
16%
50,000
15%
0
14% 2Q11
3Q11
Absorption
4Q11
1Q12
Deliveries
Total SF
20,562,505
Vacancy Rate
16.6%
YTD Net Absorption YTD Deliveries
0
Under Construction
0
Avg. Class A Rate
2Q12
464,566
$26.59
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q2 2012
UPDATE Recent Transactions in the Market
Q3 2012
SALES ACTIVITY VACANCY PROPERTY ADDRESS
NET ABSORPTION CONSTRUCTION
—
RENTAL RATE
SALE PRICE
SIZE SF
PRICE / SF
BUYER
Two Alliance Center
pending
493,201
pending
Highwoods Properties
—
Prominence in Buckhead
pending
424,309
pending
Crocker Partners
—
3399 Peachtree Rd.
$59,300,000
348,152
$170.33
Parmenter Realty
415 E Paces Ferry Rd
$3,500,000
26,570
$131.73
415 E. Paces Ferry LLC
Buckhead
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Sapient
3630 Peachtree
23,000
Class A Lease
Consulate of Japan
Phipps Tower
12,870
Class A Lease
Preparis Inc.
Tower Place 100
12,484
Class A Sublease
Counsel on Call
Lenox Towers
11,600
Class B Lease
•
Buckhead office absorption was second highest in Atlanta in the second quarter of 2012. The largest move-ins for the submarket over the past three months were SunTrust Robinson Humphrey expanding by 135,075 SF in Atlanta Financial Center and Greenberg Traurig which finally made its move into 93,466 SF at Terminus 200.
•
Office vacancy in Buckhead decreased for a sixth straight quarter and is down 7.5% from its peak in 2010. As of the end of second quarter, there were only 11 office properties in the submarket able to accommodate tenants seeking 30,000 square feet or more.
•
Leasing activity in the submarket continues to remain active; however, most of the larger leasing transactions taking place are beginning to shift to other submarkets, most notably Central Perimeter and Midtown which tend to compete most against Buckhead.