Q4 2011 | DOWNTOWN
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 50,000
Square Feet
0 4Q10
1Q11
2Q11
3Q11
Total SF
27,278,955
17%
Vacancy Rate
16%
YTD Net Absorption
4Q11
(50,000)
16.6% (331,883)
15% (100,000)
YTD Deliveries
0
Under Construction
0
14% (150,000) (200,000)
13%
(250,000)
12% Absorption
Deliveries
Avg. Class A Rate
$19.53
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q4 2011
UPDATE Recent Transactions in the Market
Q1 2012
SALES ACTIVITY VACANCY NET ABSORPTION CONSTRUCTION
—
—
RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
180 Peachtree St. (Office)
$94,750,000
338,000
$280.33
Carter Validus
One Georgia Center
$48,600,000
375,000
$129.60
Govt. Properties Trust
44 Broad Street
$3,800,000
128,502
$29.57
Williams-Russell/Johnson
135 Andrew Young Intl.
$2,250,000
16,000
$140.63
Waffle House
Downtown
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Grady Health Systems
10 Park Place
37,349
Class C Lease
Resurgens PC
550 Peachtree St.
17,917
Class A Renewal
Emory Healthcare
P’tree Center-North Tower
16,475
Class A Lease
Coxe, Curry & Associates
191 Peachtree
16,035
Class A Lease
•
Downtown finished the year on a down note with 90,427 SF of space added to the submarket in the fourth quarter. The largest move-out in the quarter was Bank of America which downsized by almost half of its original space, vacating 235,849 SF.
•
For the year, Downtown had the highest amount of space given back of any other submarket in the Atlanta office market. Anemic leasing activity, the flight-to-quality trend and overall market conditions were the main culprits to the submarket’s negative absorption in 2011.
•
The office vacancy rate Downtown has yet to hit its peak. The submarket will continue to see rising vacancy at least through the first half of 2012.
•
Downtown will be one of the last major submarkets to see a recovery; possibly not until 2013.