Q2 2010 | CENTRAL PERIMETER
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 500,000 400,000 300,000 200,000 100,000 0 (100,000) (200,000) (300,000) (400,000) (500,000)
22% 20%
Total SF
28,276,414
Vacancy Rate
20.6%
YTD Net Absorption
153,544
18% 16% 2Q09
3Q09
4Q09
1Q10
2Q10
14%
YTD Deliveries
0
Under Construction
0
12% 10% Absorption
Deliveries
Avg. Class A Rate
$22.13
Source: CoStar Property
Vacancy
MARKET INDICATORS Q2 2010
NEXT QTR
UPDATE Recent Transactions in the Market SALES ACTIVITY
VACANCY PROPERTY ADDRESS
NET ABSORPTION CONSTRUCTION
—
RENTAL RATE
SALE PRICE
SIZE SF
PRICE / SF
BUYER
9000 Central Park
$31,955,979
204,632
$156.16
Cox Enterprises
—
41, 47, 53 Perimeter Ctr. E.
$14,864,999
279,788
$53.13
Atlanta Property Group
—
1200 Ashwood Pky.
$5,500,000 (forc.)
180,840
$30.41
Lennar Partners
Waterford Office Park
$4,600,000
44,760
$102.77
PS Energy Group
Central Perimeter
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Access Insurance
Three Ravinia
80,000
Class A Lease
Kimberly-Clark
The Pointe - 500
23,930
Class A Lease
Insight Global
Ashford Green I
17,146
Class A Renewal & Expansion
SBC Systems
South Terraces
13,181
Class A Renewal
•
Central Perimeter leads all submarkets in year-to-date office space absorbed. This is a complete reversal from the submarket’s performance at mid-year 2009 when it led Atlanta in the amount of occupied space lost.
•
The Atlanta Journal-Constitution’s move from its longtime Downtown location to 223 Perimeter Center was the largest move-in for second quarter at 127,823 SF.
•
The office vacancy rate in Central Perimeter is down 0.5% from the beginning of the year when vacancy peaked. Over 150,000 SF of space has been filled in the first half of 2010.
•
Leasing activity in the submarket remains steady, and is expected to continue this way through the remainder of the year.
MARKET REPORT | Q2 2010 | ATLANTA OFFICE | CENTRAL PERIMETER
SKYLINE REVIEW Space Available Direct Sublet 35
Source: CoStar Property
30
Floors
25 20 15 10 5
BUILDING RBA % LEASED LARGEST SPACE AVAIL. RENTAL RATE PER SF (Gross)
Concourse VI
Concourse V
Three Ravinia
Glenridge Highlands II
2002 Summit Blvd.
697,400 SF
687,107 SF
813,145 SF
415,000 SF
390,139 SF
82.7%
93.6%
81%
63.6%
91.1%
70,668 SF
12,900 SF
52,880 SF
192,518 SF
15,627 SF
$23.50-$24.50
$24.50
$21.59-$24.09
$24.50-$26.50
$25.00-$27.50
1
2
3
4
5
7000 Central Park
400 Northpark
One Ravinia
Two Ravinia
64 Perimeter Ctr. E
415,324 SF
586,256 SF
386,239 SF
386,596 SF
381,432 SF
87.1%
83.4%
73.9%
79.2%
10.6%
18,340 SF
24,632 SF
47,204 SF
24,199 SF
363,630 SF
$23.50-$24.50
$25.00-$25.50
$23.00-$25.00
$21.50-$23.50
$20.00-$21.00
6
7
8
9
10
35 30
Floors
25 20 15 10 5
BUILDING RBA % LEASED LARGEST SPACE AVAIL. RENTAL RATE PER SF (Gross)
P. 2
| COLLIERS INTERNATIONAL
MARKET REPORT | Q2 2010 | ATLANTA OFFICE | CENTRAL PERIMETER
7 2 4
5
6
1
8 9 3
10
1 1 2 5 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: Barry Real Estate
400,000 SF Planning Stage Developer: Hines Properties
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 | Q2 2010 | ATLANTA OFFICE | CENTRAL PERIMETER
IN THE NEWS • Access
480 offices in 61 countries on 6 continents
• Wood
United States: 135 Canada: 39 Latin America: 17 Asia Pacific: 194 EMEA: 95
Insurance inks lease at Three Ravinia: One of the largest deals this year was recently signed at Three Ravinia. Access Insurance Holdings will be leasing 80,000 SF in the 31-story office tower. The company plans to relocate from its current offices in Brookhaven, moving into Three Ravinia in October. The transaction will boost occupancy in the building from 78% to 88%. It is a big win for Colonial Properties Trust which recently became sole owner of the property in November of last year. Partners buys 2.5-acre tract for apartments in Sandy Springs: Wood Partners recently purchased a 2.5-acre site and plans to develop a 205,000 SF multi-family project, including 168-units and 20,000 SF of retail. The project will be located at the intersection of I-285 and Glenridge Drive, close to “Pill Hill”—a cluster of hospitals and medical office—and should be completed in a year.
• Belgian
solar company moving HQ to Atlanta: Central Perimeter has been chosen as the new headquarters location for Belgian solar company Enfinity. The company will be leaving its Sacramentobased office and will lease approximately 6,500 SF at Concourse Corporate Center; with possible expansion in the future. Georgia Tech and Hartsfield-Jackson International Airport were cited as the main reasons for Enfinity choosing Atlanta for its relocation. Enfinity joins Suniva and MiaSole as other solar companies who have chosen metro Atlanta for their business operations.
•
$2 billion in annual revenue
• Over 2 billion square feet under
management • Over 15,000 professionals
UNITED STATES: AT A GLANCE | Hammond Half-Diamond Interchange •
Half-diamond interchange: Northbound entrance to GA 400 from Hammond Drive, Southbound exit from GA 400 to Hammond Drive.
•
Expected to relieve congestion at GA 400 and I-285.
•
Hammond Drive bridge will be replaced and raised higher to make room for future expansion of GA 400 lanes.
•
Project will cost an estimated $18 million to complete; completion date scheduled for Fall 2011.
Colliers International 1349 West Peachtree Street Suite 1100 Atlanta, Georgia, 30309 TEL +1 404 888 9000 FAX +1 404 870 2845
COLLIERS INTERNATIONAL ATLANTA OFFICE SPECIALISTS: Bob Allen
Bob Mathews
Neal Baker
Craig Mendel
Patrick Braswell
Scott O’Halloran
Lee Evans
Hugh Pafford
Russ Jobson
Jodi Selvey
Nicole Kamen
Fred Sheats
Jeff Kelley
Pete Shelton
Brett Kingman
Andrew Walker
Michael Lipton
Bob Ward
COLLIERS INTERNATIONAL | ATLANTA OFFICE | CENTRAL PERIMETER LISTINGS
219 PERIMETER CTR. 4,942-21,947 SF Sublease Bob Mathews / Fred Sheats 8215 ROSWELL RD. Bldgs. 200, 300, 600, 1000, 1100 10,000 SF each Sale Hugh Pafford / Jodi Selvey
www.colliers.com/atlanta
1455 LINCOLN PKWY. 4,392 SF Sublease Brett Kingman / Russ Jobson 6160 PEACHTREE DUNWOODY
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 480 offices throughout more than 61 countries worldwide.
2,217 SF Sublease Fred Sheats 5620 GLENRIDGE 84,500 SF Lease/Sale Hugh Pafford
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