Q3 2011 | BUCKHEAD
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES
Total SF
400,000
Vacancy Rate
24%
20,604,921 19%
350,000 22%
Square Feet
300,000 250,000
YTD Net Absorption
628,786
20%
200,000 18%
150,000 100,000
16%
50,000 0
YTD Deliveries
0
Under Construction
0
14% 3Q10
4Q10
Absorption
1Q11
2Q11
Deliveries
Avg. Class A Rate
3Q11
$24.83
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q3 2011
UPDATE Recent Transactions in the Market
Q4 2011
SALES ACTIVITY VACANCY PROPERTY ADDRESS
NET ABSORPTION CONSTRUCTION
—
—
RENTAL RATE
SALE PRICE
SIZE SF
PRICE / SF
BUYER
3344 Peachtree Rd.
$167,300,000
483,726
$345.86
Parkway Properties
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
SunTrust Robinson Humphrey
Atlanta Financial Center
229,894
Class A Renewal & Expansion
Morris Manning Martin
Atlanta Financial Center
124,000
Class A Renewal & Expansion
Capgemini
Prominence
24,816
Class A Lease
Prudential
Tower Place 200
16,045
Class A Lease
•
Yet again Buckhead is proving its dominance in the Atlanta office market. The submarket saw its occupancy increase by 352,658 SF in the third quarter. The largest move-ins contributing to this absorption were Windham Brannon taking 35,817 SF at 3630 Peachtree, Novelis moving into its expansion of 25,030 SF at Two Alliance and SecurAmerica occupying 20,838 SF at the Lenox Building.
•
Over 628,000 SF of office space has been filled in Buckhead year-to-date. This is the largest amount of all Atlanta office submarkets; and on the whole, basically accounts for all of the positive office absorption in the Atlanta market in 2011.
•
The office vacancy rate in Buckhead is below 20% for the first time since the end of 2009. Activity in Buckhead’s newest buildings over the past two years have helped lower their delivery impact.