Q1 2012 | DOWNTOWN
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS
Square Feet
NEW SUPPLY, ABSORPTION AND VACANCY RATES 50,000
18%
0
17%
(50,000)
1Q11
2Q11
3Q11
4Q11
1Q12
16%
(100,000) 15% (150,000) 14%
(200,000) (250,000)
13%
(300,000)
12% Absorption
Deliveries
Total SF
27,720,826
Vacancy Rate
16.9%
YTD Net Absorption
(87,585)
YTD Deliveries
0
Under Construction
0
Avg. Class A Rate
$19.67
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q1 2012
UPDATE Recent Transactions in the Market
Q2 2012
SALES ACTIVITY VACANCY NET ABSORPTION CONSTRUCTION
—
—
RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
180 Peachtree St. (Office)
$94,750,000
338,000
$280.33
Carter Validus REIT
One Georgia Center
$48,600,000
375,000
$129.60
Govt. Properties Trust
Hurt Plaza
$17,500,000
436,340
$40.11
Boxer Property
44 Broad Street
$3,800,000
128,502
$29.57
Williams-Russell & John.
Downtown
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Georgia Chamber of Commerce
270 Peachtree
27,848
Class A Lease
Sherry Bryant LLC
139 Ralph McGill Blvd.
20,451
Class C Lease
Lutheran Services of GA
100 Edgewood Ave.
18,268
Class B Lease
GCH Technology Group
270 Peachtree
8,218
Class A Lease
•
Office occupancy in Downtown decreased for the sixth time in seven quarters. Over this stretch of time the submarket’s vacancy rate has increased by almost 2%; which amounts to 520,000 square feet of vacant space added.
•
Downtown continues to lag when compared to Atlanta’s other office submarkets. Significant leasing transactions have been few and far between in the CBD. The inactivity is a product of the sluggish recovery. Also, the submarket continues to lose out to neighboring submarkets such as Midtown and Buckhead because companies want to locate in areas where they can recruit young talent.
•
Not much is expected to change for the submarket through the end of this year. Leasing will likely remain weak at least until the overall office market in Atlanta has fully recovered.