Q4 2010 | BUCKHEAD
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS
Total SF
1,000,000
31%
Vacancy Rate
800,000
26%
YTD Net Absorption
324,583
YTD Deliveries
908,852
Square Feet
NEW SUPPLY, ABSORPTION AND VACANCY RATES
600,000 21% 400,000
19,696,470 23.5%
16% 200,000 11%
0 (200,000)
4Q09
1Q10
Absorption
2Q10
3Q10
Deliveries
4Q10
6%
Under Construction Avg. Class A Rate
0 $24.96
Source: CoStar Property
Vacancy
MARKET INDICATORS Q4 2010 VACANCY
NEXT QTR
UPDATE Recent Transactions in the Market SALES ACTIVITY
—
NET ABSORPTION CONSTRUCTION
—
RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
3344 Peachtree Rd.
$167,300,000
482,699
$346.59
Parkway Properties
— —
Buckhead
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Reznick Group
Two Alliance Center
77,049
Class A Lease
Towers Watson
One Alliance Center
76,500
Class A Renewal
Securities Exchange Comm.
Atlanta Plaza One
58,650
Class A Lease
North American Electric Co.
Atlanta Fin. Ctr.-North
39,510
Class A Lease
•
Buckhead was the highlight of 2010. The submarket led all other office markets in absorption for the year and was second only to Central Perimeter in total leasing activity. It also led the Atlanta market in office space delivered with 908,852 SF in the year.
•
The submarket’s vacancy rate remains the highest in Atlanta at 23.5% overall (25.8% for Class A); however, since the delivery of 3630 Peachtree and Phipps Tower in the first quarter, office vacancy has decreased 1.9%. This downward trend is expected to continue.
•
Incentive packages in Buckhead were the most aggressive in 2010. Now that leasing activity has caught hold and larger spaces are becoming scarce, landlords are beginning to tighten their offerings.