Q3 2010 | DOWNTOWN
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 200,000
Total SF
24,937,459
17%
Vacancy Rate
15.4%
16%
YTD Net Absorption
74,179
150,000 100,000 50,000
15%
0 (50,000)
3Q09
4Q09
1Q10
2Q10
3Q10
(100,000)
YTD Deliveries
0
Under Construction
0
14% 13%
(150,000) (200,000)
12% Absorption
Deliveries
Avg. Class A Rate
$19.49
Source: CoStar Property
Vacancy
MARKET INDICATORS Q3 2010
NEXT QTR
UPDATE Recent Transactions in the Market SALES ACTIVITY
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VACANCY NET ABSORPTION CONSTRUCTION
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RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
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
353-363 Parkway Dr.
$1,000,000
9,000
$111.11
Metro. Atlanta Ob/Gyn
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
InComm
250 Williams St.
186,675
Class A Renewal & Exp.
Carlock Copeland & Stair
191 Peachtree
52,000
Class A Lease
McKinsey & Co.
Georgia Pacific Center
50,000
Class A Renewal
CredAbility
270 Peachtree
41,772
Class A Lease
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Downtown remains one of most stabilized office markets in Atlanta. Third quarter absorption totaled 49,202 SF, marking the second consecutive quarter of increased occupancy.
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For the year, office leasing in the Downtown office submarket has been steadily consistent. The largest deal this quarter was a renewal and expansion by InComm at 250 Williams Street. The gift and prepaid card distributor will be moving into an additional 90,506 SF early next year.
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On the whole, Downtown has held its own through the current economic landscape. In the past two years, the submarket has essentially broke even with move-ins and move-outs.
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Downtown is garnering a lot of attention as of late with new attractions being suggested for the area.