Q2 2010 | DOWNTOWN
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 150,000 100,000
Vacancy Rate
16%
YTD Net Absorption
15%
(50,000)
2Q09
3Q09
4Q09
1Q10
2Q10
13%
(200,000)
12% Absorption
Deliveries
15.8% (40,368)
YTD Deliveries
0
Under Construction
0
14%
(100,000) (150,000)
25,168,828
17%
50,000 0
Total SF
Avg. Class A Rate
$19.52
Source: CoStar Property
Vacancy
MARKET INDICATORS Q2 2010
NEXT QTR
UPDATE Recent Transactions in the Market SALES ACTIVITY
—
VACANCY NET ABSORPTION CONSTRUCTION
—
—
RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
75/95 Poplar St. (‘09)
$3,250,000
65,424
$49.68
GA Board of Regents
120 Ralph McGill Blvd. (Forc.)
$2,950,000
23,080
$127.82
Sunrise Bank of Atlanta
159 Ralph McGill Blvd. (Forc.)
$1,200,000
36,000
$33.33
Georgia Properties LLC
139 Ralph McGill Blvd.
$850,000
19,500
$43.59
Ralph McGill 139, LLC
Downtown
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Hawkins Parnell Thackston Young
SunTrust Plaza
71,000
Class A Renewal
Newcomb & Boyd
SunTrust Plaza
42,000
Class A Renewal
Trend Influence
SunTrust Plaza
30,500
Class A Renewal
Colo at 55
34 Peachtree St.
12,315
Class B Lease
•
Move-in activity at 191 Peachtree and the Nuclear Regulatory Commission officially moving into its space at the Marquis One tower at Peachtree Center helped push second quarter absorption levels to 88,179 SF Downtown.
•
Office leasing over the past three months has been modest at best for the submarket. The vacancy rate for Downtown office is not likely to fluctuate too much for the remainder of the year.
•
The average rental rate for office space Downtown dropped yet again in second quarter to $18.51/SF; down 7% from this time last year. The Class A average is down 5.4% from mid-year 2009.
•
Downtown could have the highest concentration of new development activity once it returns to Atlanta.