Q1 2012 | CENTRAL PERIMETER
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 1Q11
2Q11
3Q11
4Q11
300,000
22%
Square Feet
24%
200,000
20%
100,000
18%
0
16%
(100,000)
14%
(200,000)
12%
(300,000)
10% Deliveries
28,538,478
Vacancy Rate
1Q12
400,000
Absorption
Total SF
21.1%
YTD Net Absorption YTD Deliveries Under Construction Avg. Class A Rate
302,266 16,000 600,000 $21.83
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q1 2012
UPDATE Recent Transactions in the Market
Q2 2012
SALES ACTIVITY VACANCY PROPERTY ADDRESS
NET ABSORPTION CONSTRUCTION RENTAL RATE
—
SALE PRICE
SIZE SF
PRICE / SF
BUYER
1200 Ashwood Pkwy.
$9,800,000
183,619
$53.37
Atlanta Property Group
56 Perimeter Center East
$9,425,000
94,575
$99.66
The Simpson Org.
600 Morgan Falls Rd.
$6,000,000
106,678
$56.24
Resource Real Estate
4500 N Shallowford Rd.
$5,210,000
20,366
$255.82
Universal Health Serv.
Central Perimeter
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Dell Secureworks
Concourse Corp. Ctr. I
115,000
Class A Renewal & Expansion
Elavon
Concourse Corp. Ctr. I
112,000
Class A Renewal & Expansion
AirWatch
1155 Perimeter Ctr. West
102,362
Class A Lease
CHEP
245 Perimeter Center
60,000
Class A Lease
•
Central Perimeter led the Atlanta market in office space absorption in the first quarter. The major move-ins for the submarket were Ventyx which relocated from Northwest Atlanta into 55,257 SF at North Terraces, and Internap which relocated office functions from Downtown Atlanta to 58,624 SF in 1 Ravinia.
•
Cox Enterprises’s first phase of its new office complex is expected to deliver in the second quarter. The company will consolidate from other office buildings in the submarket to the new 300,000 SF building. The second phase is not expected to deliver until the fourth quarter of this year.
•
After a rough 2011, office leasing is returning to Central Perimeter. The submarket remains one of the more attractive areas for companies to relocate offices. It is expected to be one of the strongest office submarkets in 2012.
MARKET REPORT | Q1 2012 | ATLANTA OFFICE | CENTRAL PERIMETER
SKYLINE REVIEW Space Available Direct Sublet 35
Source: CoStar Property
30
Floors
25 20 15 10 5
BUILDING
Concourse VI
Concourse V
Three Ravinia
Glenridge Highlands II
7000 Central Park
RBA
697,400 SF
687,107 SF
813,145 SF
415,000 SF
415,324 SF
TYPICAL FLOOR SIZE
27,000 SF
26,719 SF
25,827 SF
20,750 SF
28,000 SF
% LEASED
85.5%
81.5%
94.7%
66.2%
88.1%
31,672 SF
76,455 SF
25,461 SF
123,997 SF
19,204 SF
$24.50-$25.50
$24.50-$25.50
$24.60
$22.50-$26.50
$23.50
1
2
3
4
5
2002 Summit Blvd.
400 Northpark
One Ravinia
Two Ravinia
64 Perimeter Ctr. E
RBA
390,139 SF
586,256 SF
386,239 SF
437,826 SF
381,432 SF
TYPICAL FLOOR SIZE
24,000 SF
24,000 SF
23,500 SF
23,400 SF
24,833 SF
% LEASED
85.1%
91.4%
81.6%
81.1%
12.1%
24,677 SF
39,901 SF
32,835 SF
24,312 SF
358,055 SF
$26.50
$25.00-$25.50
$21.50-$23.50
$21.50-$22.50
$20.00-$21.00
6
7
8
9
10
LARGEST SPACE AVAIL. RENTAL RATE PER SF (Gross)
35 30
Floors
25 20 15 10 5
BUILDING
LARGEST SPACE AVAIL. RENTAL RATE PER SF (Gross)
P. 2
| COLLIERS INTERNATIONAL
MARKET REPORT | Q1 2012 | ATLANTA OFFICE | CENTRAL PERIMETER
7 2 4
5
5
1
8 9 3
10
1 1 2 6 3
2
3
4
4 6
PLANNED CONSTRUCTION
AERIAL LEGEND
1
3
Buildings by Number (see opposite page) MARTA Rail Line New Construction
POINTS OF INTEREST
4004 PERIMETER SUMMIT
600,000 SF Planning Stage Developer: Rubenstein Partners
400,000 SF Planning Stage Developer: Seven Oaks
2
1 Perimeter Mall
4 Scottish Rite
2 Northside Hospital
5 Perimeter Place
St. Joseph’s 3 Hospital
240 PERIMETER CTR. PKWY.
6 Marist High School
4
ABERNATHY 400
TWO NORTH PLACE
350,000 SF Planning Stage Delivering TBD Developer: Ackerman/Russell
230,000 SF Planning Stage Delivering TBD Developer: Crocker Partners COLLIERS INTERNATIONAL |
P. 3
MARKET REPORT | Q1 2012 | ATLANTA OFFICE | CENTRAL PERIMETER
IN THE NEWS • Dell
SecureWorks completes Concourse lease: Dell SecureWorks recently signed a 115,000 SF renewal and expansion at Concourse Corporate Center One. The company will be expanding its current office space in the building by 76,000 SF. It was reported last year SecureWorks was looking to grow its office space due to Dell, Inc.’s acquisition of the company and its subsequent plans of adding 200 jobs in Atlanta. The new jobs will include engineers, researchers and sales people which will assist the company with providing information security services to its clients. plans to add 400 jobs to Central Perimeter area: AirWatch LLC is expanding its office space in Atlanta and moving to the Central Perimeter submarket. The company recently signed a lease for 102,362 SF at 1155 Perimeter Center to accommodate the addition of 400 new jobs; part of a $20 million expansion by the company. AirWatch will be relocating from 40,000 SF of loft office space in Midtown. Central Perimeter was chosen as the company’s new office location for recruitment purposes.
522 offices in 62 countries on 6 continents United States: 147 Canada: 37 Latin America: 19 Asia Pacific: 201 EMEA: 118
• AirWatch
• Atlanta’s
royal couple on the market: It has been reported TIAA-CREF will be selling Atlanta’s most iconic office building couple. Concourse Corporate Center V & VI are officially on the market and are expected to be one of the city’s largest commercial office transactions since 3344 Peachtree sold in Buckhead last year. Estimates pin the sale at $245 million or more. Together the buildings total 1,384,507 SF. They are being marketed alongside the rest of the Concourse Corporate Center office complex which TIAA-CREF also owns.
AT A GLANCE | King & Queen Buildings on the Market
•
$1.8 billion in annual revenue
• Over 2.5 billion square feet under
management • Over 12,000 professionals
UNITED STATES: Colliers International Two Midtown Plaza | Suite 1100 1349 West Peachtree Street, NE Atlanta, Georgia, 30309 TEL +1 404 888 9000 FAX +1 404 870 2845
•
Iconic Class A office towers totaling 1,384,507 SF.
•
Built in 1988 and 1991. Together, buildings are currently 83.5% leased.
•
Could fetch up to $245 million for the pair; or around $175 per square foot.
COLLIERS INTERNATIONAL ATLANTA OFFICE SPECIALISTS:
•
Major tenants include CompuCredit, Ericsson, Morgan Stanley and Gifford Hillegass & Ingwersen.
Bob Allen
Bob Mathews
Jill Bomar
Craig Mendel
Lee Evans
Scott O’Halloran
Part of larger 2.1 million-square-foot office park which is also being put on the market for sale.
Deming Fish
Hugh Pafford
Huston Green
Jodi Selvey
Tim Huffman
Fred Sheats
Current owner is TIAA-CREF.
Russ Jobson
Pete Shelton
•
•
COLLIERS INTERNATIONAL | ATLANTA OFFICE | CENTRAL PERIMETER LISTINGS
Jeff Kelley
Hayes Swann
Drew Lavine
Andrew Walker
Michael Lipton
Bob Ward
Nicole Littleton
219 PERIMETER CTR. 4,942-21,947 SF Sublease Bob Mathews / Fred Sheats 185 ALLEN RD. 4,109 SF Andrew Walker 121 PERIMETER CTR. 1,772-16,822 SF Sublease Craig Mendel
www.colliers.com/atlanta
CENTER POINTE 3,861 SF Sublease Craig Mendel EMBASSY ROW 1,576-75,000 SF Lease Scott O’Halloran/ Lee Evans/ Deming Fish
This market report is a research document of Colliers International. Information herein has been deemed reliable and no representation is made as to the accuracy thereof. Colliers International-Atlanta, Inc., and certain of its subsidiaries, is an independently owned and operated business and a member firm of Colliers International Property Consultants, an affiliation of independent companies with over 520 offices throughout 62 countries worldwide.
5620 GLENRIDGE 84,580 SF Lease/Sale Hugh Pafford
Accelerating success.