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
•
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.
•
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.
•
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.
MARKET REPORT | Q4 2010 | ATLANTA OFFICE | DOWNTOWN
SKYLINE REVIEW Space Available Direct Sublet
60 55 50 45 40
Floors
35 30 25 20 15 10 5
BUILDING RBA
Bank of America Plaza
SunTrust Plaza
Georgia-Pacific Center
191 Peachtree
Centennial Tower
1,253,499 SF
1,249,022 SF
1,133,840 SF
1,209,721 SF
638,731 SF
79.7%
92.8%
88.3%
81.1%
88.4%
203,068 SF
23,545 SF
109,652 SF
102,045 SF
37,600 SF
$30.00-$31.00
$26.00-$28.00
$21.00-$22.00
$26.00
$17.00-$22.00
1
2
3
4
5
% LEASED LARGEST SPACE AVAIL. RENTAL RATE PER SF (Gross)
12 11
8
1 9
2
7
8 4 3 10 9 6 3 5
10
2 7 6
5 1 3
P. 2
| COLLIERS INTERNATIONAL
4
2
1
13 15 14
16
MARKET REPORT | Q4 2010 | ATLANTA OFFICE | DOWNTOWN
NOTABLE PROJECTS Source: CoStar Property
1
E Q U I TA B L E
COLLEGE FOOTBALL HALL OF FAME 50,000 SF Delviering Spring 2013
2
100 Peachtree
Marquis One
North Tower
270 Peachtree
55 Park Place
625,000 SF
460,437 SF
302,951 SF
325,000 SF
553,018 SF
47.7%
67%
65.9%
73.6%
74.2%
181,634 SF
54,287 SF
126,713 SF
41,772 SF
278,716 SF
$17.50-$19.50
$20.50-$21.50
$18.50-$19.50
$18.00-$19.00
$18.50
6
7
8
9
10
AERIAL LEGEND
POINTS OF INTEREST 1 Georgia Dome
100,000 SF $125 million project Construction pending
3
9 The Varsity
2 Philips Arena
10 Georgia Tech
World 3 Georgia Congress Center
11 Atlanta Civic Center
4 CNN Center
Sweet Auburn 12 Curb Market
MARTA Rail Line
5 Centennial Olympic Park
13 Georgia State University
New Construction
6 Georgia Aquarium 14 Underground Atlanta
Buildings by Number (see opposite page)
CIVIL RIGHTS MUSEUM
7 World of Coke
15 State Capital
8 The Fox Theater
16 Turner Field
50 ALLEN PLAZA 870,914 SF Developer: Barry Real Estate Proposed
COLLIERS INTERNATIONAL |
P. 3
MARKET REPORT | Q4 2010 | ATLANTA OFFICE | DOWNTOWN
IN THE NEWS
480 offices in 61 countries on 6 continents
• Cousins,
Jacoby, Russell vie for transit hub work: The Georgia Department of Transportation has narrowed down its search for development of the “Gulch” property, one of the largest transit-oriented developments in the nation. Local developers Cousins Properties, Jacoby Development and H.J. Russell are all competing to win the assignment. Each developer was required to submit a proposal to include master plans for the project including construction, management and financing. The GDOT is expected to make its selection of the winning developer by midsummer. State University picks site for business, law schools: The site for Georgia State’s new business and law schools were recently purchased by the university. About 2.4 acres at John Wesley Dobbs and Park Place were sold to GSU for $17.8 million in December 2010. No plans are imminent for the property, however, GSU will use this site for its new business and law schools which will encompass approximately 400,000 SF of expanded facilities. As it has done in the past, Georgia State continues to dominate the Downtown landscape with the purchase. The new buildings will raise GSU’s business and law school profiles regionally and nationally.
United States: 135 Canada: 39 Latin America: 17 Asia Pacific: 194 EMEA: 95
• Georgia
• College
football hall set for World Congress Center area: A 2.7-acre parcel off of Marietta Street adjacent to the Georgia World Congress Center will be the future home of the College Football Hall of Fame when it moves from South Bend, Indianapolis. The location is across from Centennial Olympic Park allowing the attraction to be in an area frequently visited by tourists. The $50 million facility will include a 50,000 SF low-rise building with event space and a 3-D theater. Construction is expected to begin in August of 2011 with a completion date by the spring of 2013. AT A GLANCE | Streetcar gets funding
•
U.S. Department of Transportation agrees to grant $47 million to the city’s proposed $70 million streetcar project.
•
First phase of project will run 2.6 miles from the King Center site to Centennial Olympic Park, featuring a dozen stops and direct connection to MARTA.
•
•
•
•
$2 billion in annual revenue
• Over 2 billion square feet under
management • Over 15,000 professionals
UNITED STATES: Colliers International 1349 West Peachtree Street Suite 1100 Atlanta, Georgia, 30309 TEL +1 404 888 9000 FAX +1 404 870 2845
COLLIERS INTERNATIONAL ATLANTA OFFICE SPECIALISTS: Bob Allen
Craig Mendel
Expected to provide 2,600 trips a weekday in its first year of operation.
Lee Evans
Scott O’Halloran
Deming Fish
Hugh Pafford
Critics argue the streetcar will do nothing to ease metro Atlanta’s biggest transportation problems.
Huston Green
Jodi Selvey
Russ Jobson
Fred Sheats
Construction begins in 2012 with a completion date targeted for 2013.
Nicole Kamen
Pete Shelton
Jeff Kelley
Hayes Swann
Brett Kingman
Andrew Walker
Michael Lipton
Bob Ward
Bob Mathews COLLIERS INTERNATIONAL | ATLANTA OFFICE | DOWNTOWN LISTINGS
This market report is a research document of Colliers International. Information herein has been deemed reliable and no representation is made as to the accuracy thereof. Colliers International-Atlanta, Inc., and certain of its subsidiaries, is an independently owned and operated business and a member firm of Colliers International Property Consultants, an affiliation of independent companies with over 480 offices throughout more than 61 countries worldwide.
135 ANDREW YOUNG INTL. BLVD. 11,000 SF Sale Jodi Selvey / Pete Shelton
www.colliers.com/atlanta
HERNDON PLAZA 105,323 SF Sale Pete Shelton
Accelerating success.