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.