Q4 2010 | DOWNTOWN
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES
Total SF
24,644,071
300,000
17%
Vacancy Rate
16%
YTD Net Absorption
15%
250,000
Square Feet
200,000 150,000
15%
100,000 50,000
YTD Deliveries
0
Under Construction
0
14%
0 (50,000)
167,399
4Q09
1Q10
2Q10
3Q10
4Q10
13%
(100,000) (150,000)
12% Absorption
Deliveries
Avg. Class A Rate
$19.38
Source: CoStar Property
Vacancy
MARKET INDICATORS
VACANCY
Q4 2010
NEXT QTR
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UPDATE Recent Transactions in the Market SALES ACTIVITY
NET ABSORPTION CONSTRUCTION
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PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
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
RENTAL RATE
Downtown
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Turner Broadcasting Co.
Centennial Tower
115,000
Class A Renewal & Exp.
HKS Inc.
191 Peachtree
15,965
Class A Lease
Vitrue
Centennial Tower
14,500
Class A Lease
Connecture
Centennial Tower
13,000
Class A Lease
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Downtown finished the year with (30,578) SF of negative quarterly absorption; however, for the year as a whole, the submarket saw total occupancy increase by 167,399 SF. This was the third highest amount of space absorbed among Atlanta’s office submarkets in 2010.
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The office vacancy rate in Dowtown dropped a full percentage point since first quarter. During this time, over 365,000 SF of vacant space has been filled.
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The largest Downtown move-ins of 2010 were mostly full-floor deals in a number of properties. The U.S. Nuclear Regulatory Commission and Hall Booth Smith & Slover absorbed the largest spaces moving into 102,436 SF and 54,000 SF respectively.