Q3 2011 | CENTRAL PERIMETER
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 3Q10
4Q10
1Q11
2Q11
Total SF
29,041,681
Vacancy Rate
3Q11
21.1%
22%
0
Square Feet
20% (50,000) 18% 16%
(100,000)
14% (150,000)
YTD Net Absorption
(282,106)
YTD Deliveries Under Construction
0 616,000
12% 200,000)
10% Absorption
Deliveries
Avg. Class A Rate
$21.85
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q3 2011
UPDATE Recent Transactions in the Market
Q4 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
6255 Barfield Rd.
$3,000,000
54,000
$55.56
GT Software
270 Carpenter Dr.
$2,500,000
97,412
$25.66
Sandy Springs Inv.
Central Perimeter
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
IRS
6655 Peachtree Dunwoody
71,108
Class A Renewal
Internap Network
One Ravinia
61,737
Class A Lease
Ventyx
The Terraces
55,257
Class A Lease
AutoTrader
2002 Summit Blvd.
48,000
Class A Sublease
•
Vacancies continue to pile up in Central Perimeter. For the fifth consecutive quarter, the submarket lost more tenants than it gained. During this time, office occupancy has decreased by 576,257 SF.
•
Central Perimeter has had a rough 2011 with companies relocating to neighboring submarkets and tenants downsizing their existing office spaces in the submarket. Class B office product in the submarket has been hit the hardest with year-to-date absorption totaling (304,631) SF. This is an example of a flight to quality by tenants looking to take advantage of market conditions.
•
Over the past two quarters, leasing activity in the submarket has picked up significantly. Recent announcements by Internap Network, Ventyx and AFC Enterprises will translate into positive space absorption in the coming year. Central Perimeter’s 2011 woes will not carryover into 2012.