Q2 2011 | MIDTOWN
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 22%
150,000 100,000
20%
Square Feet
50,000 0 (50,000)
18% 2Q10
3Q10
4Q10
1Q11
2Q11
16%
(100,000) (150,000)
14%
(200,000)
Total SF
22,156,312
Vacancy Rate YTD Net Absorption
20.1% (226,629)
YTD Deliveries
0
Under Construction
0
12%
(250,000) (300,000)
10% Absorption
Deliveries
Avg. Class A Rate
$24.98
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q2 2011 VACANCY
UPDATE Recent Transactions in the Market
Q3 2011
SALES ACTIVITY
—
NET ABSORPTION CONSTRUCTION
—
—
RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
675 Ponce de Leon
$27,000,000
1400 Peachtree
$6,000,000
2,000,000
$13.50
Jamestown Properties
1.7-acres
$81.02
1382 Peachtree St.
Dewberry Capital
$4,200,000
30,448
$137.94
1440 Dutch Valley Place
Big Brothers Big Sisters
$2,675,000
65,800
$40.65
Parkside Partners
Midtown
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Arnall Golden Gregory
171 17th Street
124,521
Class A Renewal
Regions Bank
Atlantic Center Plaza
80,000
Class A Lease
Teknion
271 17th Street
7,259
Class A Lease
Brickworks Atlanta
5,000
Class B Lease
•
Second quarter activity was lackluster in the Midtown office submarket. Though positive, absorption only amounted to 8,700 SF over the three month period. Leasing activity was no better with only two large transactions getting completed.
•
For the most part, Midtown has been holding its own given the modest office market conditions in Atlanta. The overall vacancy rate in the submarket is the same as it was a year ago. Midtown has managed to dodge the effect from its largest consolidations and contractions.
•
Not much is expected to change as it relates to Midtown office leasing. The submarket will see a handful of new deals in the second half of the year, but overall activity should continue to remain mute. New hiring and expansion from professional business firms is needed to jumpstart the submarket.