Q2 2011 | CENTRAL PERIMETER
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS
Square Feet
NEW SUPPLY, ABSORPTION AND VACANCY RATES 100,000
22%
50,000
20%
0
18%
(50,000)
2Q10
3Q10
4Q10
1Q11
2Q11
16%
(100,000)
14%
(150,000)
12%
(200,000)
10% Absorption
Deliveries
Total SF
29,015,440
Vacancy Rate
20.8%
YTD Net Absorption
(186,472)
YTD Deliveries Under Construction Avg. Class A Rate
0 600,000 $22.05
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q2 2011
UPDATE Recent Transactions in the Market
Q3 2011
SALES ACTIVITY
—
VACANCY NET ABSORPTION CONSTRUCTION
—
—
RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
2 Ravinia
$40,419,000
437,826
$92.32
Parkway Properties
1455 Lincoln Pkwy.
$13,260,000
182,000
$72.86
Jackson Oats Shaw
4800 Ashford Dunwoody
$3,400,000
44,992
$75.57
4800 Ashford Dunw. LLC
8800 Roswell Rd. - Bldg. A
$2,100,000
26,932
$77.97
Resource Real Estate
Central Perimeter
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Newell Rubbermaid
One Glenlake
107,000
Class A Expansion
AFC Enterprises
North Terraces
55,000
Class A Lease
The Coalition America
Concourse II
48,000
Class A Renewal
Discrete Wireless
1200 Lake Hearn Dr.
20,108
Class B Lease
•
For the fourth consecutive quarter, the Central Perimeter submarket posted negative absorption. Office occupancy dropped by 132,007 SF in the second quarter. The largest move-out was Cotton States which vacated 104,936 SF at 244 Perimeter Center, relocating to North Fulton.
•
With yet another quarterly increase in vacant space, the submarket now has the highest vacancy rate among Atlanta’s other major office submarkets. Given current conditions, this is not expected to change by the end of the year.
•
Central Perimeter is most affected by the cautious approach taken by corporate America regarding company office space expansion. Although overall office leasing remains tepid, the submarket did see an uptick in activity in second quarter.