Q3 2010 | BUCKHEAD
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES
Total SF
19,818,757
1,200,000
31%
Vacancy Rate
26%
YTD Net Absorption
266,162
YTD Deliveries
908,852
23.5%
1,000,000 800,000 600,000
21%
400,000 16%
200,000 0 (200,000)
11% 3Q09
4Q09
1Q10
2Q10
(400,000)
6% Absorption
Deliveries
Under Construction
0
3Q10
Avg. Class A Rate
$25.07
Source: CoStar Property
Vacancy
MARKET INDICATORS Q3 2010
NEXT QTR
UPDATE Recent Transactions in the Market SALES ACTIVITY
VACANCY PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
NET ABSORPTION CONSTRUCTION
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—
NO 2010 ACTIVITY
RENTAL RATE
Buckhead
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Kids II
Terminus 200
102,818
Class A Lease
J. Walter Thompson
3630 Peachtree
48,000
Class A Lease
Ridgeworth Capital
Terminus 200
34,000
Class A Lease
McCann Erickson
Terminus 200
24,190
Class A Lease
•
Buckhead posted its strongest quarter of office absorption in three years this quarter. Total occupancy increased by 267,541 SF over the past three months. The largest move-ins occurred in Two Alliance Center, Prominence and Terminus 200
•
Two headquarter relocations highlighted the submarket’s positive absorption in third quarter. Novelis relocated and expanded from its current Buckhead office to Two Alliance Center, moving into 100,178 SF. Sony Ericsson moved its North American headquarters from the Research Triangle in North Carolina to 48,907 SF at Terminus 200.
•
Buckhead’s newest office towers continue to see the strongest leasing activity in the market.