Q3 2011 | DOWNTOWN
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 100,000
17%
Square Feet
50,000
16%
0 (50,000)
3Q10
4Q10
1Q11
2Q11
3Q11
(100,000)
Absorption
Deliveries
Vacancy Rate
16%
YTD Net Absorption
(160,271)
YTD Deliveries
0
13%
Under Construction
0
12%
Avg. Class A Rate
(150,000)
(250,000)
27,105,294
15% 14%
(200,000)
Total SF
$19.44
Vacancy
Source: CoStar Property, Colliers Research
MARKET INDICATORS Projected
Q3 2011
UPDATE Recent Transactions in the Market
Q3 2011
SALES ACTIVITY VACANCY NET ABSORPTION CONSTRUCTION
—
RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
55 Allen Plaza
$57,000,000
348,658
$163.48
Teachers Retirement of Ill.
—
One Georgia Center
$48,600,000
375,000
$129.60
Govt. Properties Trust
—
100 Peachtree Street
$27,500,000
622,301
$44.19
America’s Capital Prtnrs.
40 Marietta Street
$6,000,000
123,370
$48.63
Nakash Holdings
Downtown
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Internap
250 Williams Street
31,000
Class A Expansion
SunTrust Banks
SunTrust Tower
23,545
Class A Expansion
Cardlytics
112 Krog St.
16,475
Class C Lease
Emory Healthcare
P’tree Center-North Tower
16,085
Class A Lease
•
Third quarter absorption in the Downtown submarket was the fourth highest in Atlanta’s office market. A handful of small move-ins were the contributing factor to the increase in occupancy.
•
As expected, demand in the submarket remains tepid. Not much leasing activity is occurring in Downtown office buildings. For the year, renewals have been the bulk of the transactions that have taken place.
•
Bank of America’s downsizing at Bank of America Plaza will affect fourth quarter occupancy figures Downtown. The submarket will finish the year with an increase in its overall vacancy from 2010.
•
Downtown Class A buildings still boast the most affordable rental rates in the metro area.