Q1 2012 | MIDTOWN
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES
Total SF
300,000
Vacancy Rate
Square Feet
200,000 100,000 0 1Q11
2Q11
3Q11
4Q11
1Q12
(100,000)
(200,000) (300,000) Absorption
Deliveries
20% 19% 18% 17% 16% 15% 14% 13% 12% 11% 10%
22,225,522 18.4%
YTD Net Absorption
241,527
YTD Deliveries Under Construction
0 450,000
Avg. Class A Rate
$27.00
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q1 2012
UPDATE Recent Transactions in the Market
Q2 2012
SALES ACTIVITY VACANCY PROPERTY ADDRESS
NET ABSORPTION CONSTRUCTION
—
RENTAL RATE
SALE PRICE
SIZE SF
PRICE / SF
BUYER
Promenade II
$137,500,000
774,344
$177.57
Cousins Properties
—
201 17th Street
$48,800,000
349,402
$139.67
CBRE Investors
—
675 Ponce de Leon
$27,000,000
2,000,000
$13.50
Jamestown Properties
728-736 West Peachtree
$4,439,600
25,400
$174.79
SunTrust Banks
Midtown
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
tvsdesigns
Promenade II
74,854
Class A Renewal & Contraction
IMG Worldwide
1075 Peachtree
42,868
Class A Lease
Norfolk Southern
Promenade II
37,000
Class A Lease
Duane Morris
1075 Peachtree
27,898
Class A Lease
•
Midtown had the second highest amount of office space absorbed in the first quarter. Occupancy increased by 241,527 square feet during the period. The largest move-ins contributing to this increase were mostly full floor transactions; examples being Ogilvy & Mather at 217 17th Street, Gensler at 999 Peachtree and Routematch at One Atlantic Center.
•
Leasing activity in Midtown has been fairly consistent and steady over the past year. Since the first quarter of 2012, the overall office vacancy rate in the submarket has dropped one percent.
•
The average rental rate for office space in Midtown is the highest in the Atlanta market at $24.52/sf. Still, despite the positive conditions, rents have yet to show any signs of trending upwards.
•
Looking ahead, Midtown is expected to be one of the stronger office submarkets in Atlanta in 2012.