Q1 2011 | CENTRAL PERIMETER
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 200,000
22% 20%
Square Feet
100,000
Total SF
29,023,718
Vacancy Rate
20%
YTD Net Absorption
(148,762)
18% 0
16% 1Q10
2Q10
3Q10
4Q10
1Q11
14%
(100,000)
YTD Deliveries Under Construction
0 300,000
12% (200,000)
10% Absorption
Deliveries
Avg. Class A Rate
$22.05
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q1 2011
UPDATE Recent Transactions in the Market
Q2 2011
SALES ACTIVITY
—
VACANCY NET ABSORPTION CONSTRUCTION
—
—
RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
600 Morgan Falls Rd.
$5,000,000
106,678
$46.87
Parkway Properties
5424 Glenridge Dr.
$4,250,000
15,000
$283.33
Shoffland Holdings LLC
4800 Ashford Dunwoody
$3,400,000
44,992
$75.57
4800 Ashford Dunw. LLC
8215 Roswell Rd.-Bldg 300
$720,000
10,000
$72
Anthente Ind. Holdings
Central Perimeter
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Zurich North America
1001 Perimeter Summit
112,316
Class A Lease
EchoStar Corp.
211 Perimeter Center Pky.
49,978
Class A Renewal
Mary Hall Freedom House
200 Hannover Park Rd.
19,300
Class C Renewal
Skylight Financial
1455 Lincoln Pkwy.
17,203
Class A Renewal
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The Central Perimeter submarket experienced a rough start to the year in terms of office absorption. Occupancy dropped by almost 150,000 SF in the first quarter thanks to tenant consolidations to neighboring submarkets.
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The submarket has the highest concentration of vacant space in the Atlanta office market. Since this time last year, the overall vacancy rate has increased by 1.3%. This is the largest increase of any other office submarket during this period.
•
With office demand tepid in Atlanta, Central Perimeter continues to struggle finding tenants to fill existing vacancies. The submarket is known to attract Fortune 500 companies. The problem is these companies remain cautious on expansion plans.