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.
MARKET REPORT | Q3 2011 | ATLANTA OFFICE | CENTRAL PERIMETER
SKYLINE REVIEW Space Available Direct Sublet 35
Source: CoStar Property
30
Floors
25 20 15 10 5
BUILDING
Concourse VI
Concourse V
Three Ravinia
Glenridge Highlands II
7000 Central Park
RBA
697,400 SF
687,107 SF
813,145 SF
415,000 SF
415,324 SF
TYPICAL FLOOR SIZE
27,000 SF
26,719 SF
25,827 SF
20,750 SF
28,000 SF
% LEASED
84.6%
79.3%
95%
64.7%
86.3%
31,672 SF
76,455 SF
25,461 SF
123,997 SF
23,270 SF
$24.00-$25.00
$24.00-$25.00
$24.60
$22.50-$24.50
$23.50
1
2
3
4
5
2002 Summit Blvd.
400 Northpark
One Ravinia
Two Ravinia
64 Perimeter Ctr. E
RBA
390,139 SF
586,256 SF
386,239 SF
437,826 SF
381,432 SF
TYPICAL FLOOR SIZE
24,000 SF
24,000 SF
23,500 SF
23,400 SF
24,833 SF
% LEASED
83.1%
75%
75.7%
76.4%
12.1%
24,677 SF
131,509 SF
47,204 SF
24,312 SF
326,699 SF
$26.50
$25.00-$25.50
$20.00-$22.00
$21.50-$22.50
$20.00-$21.00
6
7
8
9
10
LARGEST SPACE AVAIL. RENTAL RATE PER SF (Gross)
35 30
Floors
25 20 15 10 5
BUILDING
LARGEST SPACE AVAIL. RENTAL RATE PER SF (Gross)
P. 2
| COLLIERS INTERNATIONAL
MARKET REPORT | Q3 2011 | ATLANTA OFFICE | CENTRAL PERIMETER
7 2 4
5
5
1
8 9 3
10
1 1 2 6 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 2011 | ATLANTA OFFICE | CENTRAL PERIMETER
IN THE NEWS • IT
provider Internap relocates HQ to One Ravinia: Internap Network Services, whose headquarters is currently located Downtown, will relocate into 61,737 SF at One Ravinia. The information technology provider will move approximately 250 Atlanta employees to the new location. The move comes on the heels of Internap’s need to expand its data center in the 250 Williams Street building Downtown. Upon relocation to the One Ravinia building, the company will begin expanding its data center into the space vacated. The move to Central Perimeter is expected to occur Spring 2012. seeks bigger stage in ATL tech sector: Software company Ventyx will be leaving its current location in Marietta, and move to the Central Perimeter submarket. The company leased 55,257 SF in North Terraces and plans to relocate 300 jobs to the building in Spring 2012. Moving to Central Perimeter will put Ventyx closer to a larger amenity base and also provide it with a more prominent position in the city to recruit new talent.
512 offices in 61 countries on 6 continents United States: 125 Canada: 38 Latin America: 18 Asia Pacific: 214 EMEA: 117
• Ventyx
• New
GA 400 interchange opens at Hammond Drive: The new interchange at GA 400 and Hammond Drive was completed in September and is now in use. The half-diamond interchange allows for a southbound exit off of GA 400 and a northbound ramp onto GA 400 from Hammond Dr. The project is expected to relieve traffic and congestion in the area.
• Novare
gives back Perimeter Center Tower: Novare Group recently gave back its 240,000 SF office building at 245 Perimeter Center Pkwy. as a deed in lieu of foreclosure to GE Capital. AT A GLANCE | Hammond Half-Diamond Interchange Opens
•
$1.5 billion in annual revenue
• Over 2.2 billion square feet under
management • Over 13,000 professionals
UNITED STATES: Colliers International Two Midtown Plaza | Suite 1100 1349 West Peachtree Street, NE Atlanta, Georgia, 30309 TEL +1 404 888 9000 FAX +1 404 870 2845
•
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.
COLLIERS INTERNATIONAL ATLANTA OFFICE SPECIALISTS:
•
Hammond Drive bridge will be replaced and raised higher to make room for future expansion of GA 400 lanes.
Bob Allen
Bob Mathews
Lee Evans
Craig Mendel
Project will cost an estimated $18 million to complete; completed Fall 2011.
•
COLLIERS INTERNATIONAL | ATLANTA OFFICE | CENTRAL PERIMETER LISTINGS
Deming Fish
Scott O’Halloran
Huston Green
Hugh Pafford
Tim Hoffman
Jodi Selvey
Russ Jobson
Fred Sheats
Nicole Kamen
Pete Shelton
Jeff Kelley
Hayes Swann
Brett Kingman
Andrew Walker
Drew Levine
Bob Ward
Michael Lipton
219 PERIMETER CTR. 4,942-21,947 SF Sublease Bob Mathews / Fred Sheats
CENTER POINTE 3,861 SF Sublease Craig Mendel
5883 GLENRIDGE 8215 ROSWELL RD. Bldgs. 600, 1000 10,000-15,000 SF Sale Hugh Pafford / Jodi Selvey
www.colliers.com/atlanta
16,104 SF Sublease Fred Sheats
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 512 offices throughout more than 61 countries worldwide.
5620 GLENRIDGE 84,500 SF Lease/Sale Hugh Pafford
Accelerating success.