Q2 2012 | CENTRAL PERIMETER
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 24% 22%
300,000
20%
Square Feet
500,000 400,000
200,000
18%
100,000 16%
0
(100,000)
14%
(200,000)
12%
(300,000)
10% 2Q11
3Q11
Absorption
4Q11
1Q12
Deliveries
Total SF
28,937,727
Vacancy Rate
20.8%
YTD Net Absorption
758,176
YTD Deliveries
316,000
Under Construction
300,000
Avg. Class A Rate
$21.82
2Q12
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q2 2012
UPDATE Recent Transactions in the Market
Q3 2012
SALES ACTIVITY VACANCY NET ABSORPTION CONSTRUCTION RENTAL RATE
—
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
Concourse Corporate Ctr.
pending
2,100,000
pending
Regent Partners/GEM
—
1 Ravinia Dr.
$52,750,000
386,603
$136.44
Franklin Street Prop.
—
Ashford Center North
$15,500,000
154,113
$100.58
Parkway Properties
1200 Lake Hearn Dr.
$10,200,000
140,000
$72.86
Perimeter Crossing LLC
Central Perimeter
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
State Farm
64/66 Perimeter Center
434,513
Class A Lease
Old Castle
900 Ashwood
91,595
Class A Lease
Elekta
North Terraces
77,100
Class A Lease
AmeriCold Logistics
10 Glenlake
76,000
Class A Renewal & Expansion
•
For a second straight quarter, Central Perimeter led the Atlanta market in office space absorbed. Occupancy increased by 417,529 SF in second quarter. More than 70% of the square feet absorbed was from Cox Enterprises moving into the first phase of its new office campus.
•
Office leasing in the submarket has been the most active of any submarket in Atlanta. In the past three months alone, over 1 million square feet of leases were signed in Central Perimeter, including State Farm’s lease at 64 & 66 Perimeter Center; the largest transaction to date in Atlanta’s office market.
•
Because of the active leasing environment, a few owners have decided to put their office buildings on the market for sale including Rubenstein with The Terraces and 64 & 66 Perimeter Center, and also TIAA-CREF with Concourse Corporate Center which is currently under contract.