Q3 2010 | CENTRAL PERIMETER
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES
Total SF
200,000
22%
Vacancy Rate
20.9%
100,000
20%
YTD Net Absorption
72,860
0
18%
(100,000)
3Q09
4Q09
1Q10
2Q10
3Q10
16%
(200,000)
14%
(300,000)
12%
(400,000)
10% Absorption
Deliveries
28,303,498
YTD Deliveries
0
Under Construction
0
Avg. Class A Rate
$22.22
Source: CoStar Property
Vacancy
MARKET INDICATORS Q3 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
5424 Glenridge Dr.
$4,250,000
15,000
$283.33
Shoffland Holdings LLC
Central Perimeter
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Global Payments
10 Glenlake North
168,317
Class A Renewal
Munich American Reass.
56 Perimeter Center
63,500
Class A Renewal
McCalla Raymer
Concourse VI
28,718
Class A Lease
Enterprise Leasing
Palisades Office Park
27,769
Class A Renewal
•
Class B & C move-outs were the reason for the negative absorption for Central Perimeter in the third quarter. Despite this, the submarket still shows a net occupancy increase for the year thanks mostly to positive Class A absorption .
•
The submarket’s largest move-in of third quarter was AutoTrader moving into 102,070 SF at 3003 Perimeter Summit. The auto buying/selling information company relocated from Class B property.
•
Move-outs in fourth quarter are expected to erase Central Perimeter’s positive absorption in 2010. A number of relocations will hit the submarket in the coming months, wiping away occupancy gains from the beginning of the year. Office leasing remains active, however, and will limit the total loss.
MARKET REPORT | Q3 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
85.8%
96.4%
81%
63.6%
91.9%
50,000 SF
76,491 SF
52,880 SF
192,518 SF
8,274 SF
$23.50-$24.50
$24.50
$22.09-$24.09
$22.50-$26.50
$25.00-$26.75
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
437,826 SF
381,432 SF
86%
74.9%
74%
83.5%
10.6%
18,340 SF
131,509 SF
47,204 SF
24,199 SF
363,630 SF
$23.50-$24.50
$25.00-$25.50
$22.00-$23.00
$21.50-$23.50
$20.00-$21.50
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 | Q3 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 | Q3 2010 | ATLANTA OFFICE | CENTRAL PERIMETER
IN THE NEWS
480 offices in 61 countries on 6 continents
• Revolving
deals for Central Perimeter: Central Perimeter has seen its share of large deals this year, some of which have resulted and will result in net occupancy gains for the submarket. Most of the office leasing occurring this year, however, is from existing companies in the area. These deals may or may not produce positive absorption depending on whether the company is contracting or expanding its space usage. The bright spot is that companies which locate to Central Perimeter tend to stay in the submarket because of area amenities and transportation access. The negative aspect is that these intra-market moves do little to the vacant space available in the submarket.
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.
United States: 135 Canada: 39 Latin America: 17 Asia Pacific: 194 EMEA: 95
• Access
• Wood
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.
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 | 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 10,000-15,000 SF Sale Hugh Pafford / Jodi Selvey
www.colliers.com/atlanta
•
$2 billion in annual revenue
• Over 2 billion square feet under
management • Over 15,000 professionals
UNITED STATES: 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
Craig Mendel
Neal Baker
Scott O’Halloran
Lee Evans
Hugh Pafford
Huston Green
Jodi Selvey
Russ Jobson
Fred Sheats
Nicole Kamen
Pete Shelton
Jeff Kelley
Hayes Swann
Brett Kingman
Andrew Walker
Michael Lipton
Bob Ward
Bob Mathews
1455 LINCOLN PKWY. 4,392 SF Sublease Brett Kingman / Russ Jobson 5883 GLENRIDGE DR. 16,104 SF Sublease Neal Baker
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.
5620 GLENRIDGE 84,500 SF Lease/Sale Hugh Pafford
Accelerating success.