Q3 2011 | MIDTOWN
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS
Square Feet
NEW SUPPLY, ABSORPTION AND VACANCY RATES 200,000
22%
100,000
20% 18%
0 3Q10
4Q10
1Q11
2Q11
3Q11
16%
Total SF
22,200,659
Vacancy Rate YTD Net Absorption
19.7% (239,871)
YTD Deliveries
0
Under Construction
0
(100,000) 14%
(200,000)
12%
(300,000)
10% Absorption
Deliveries
Avg. Class A Rate
$24.89
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q3 2011
UPDATE Recent Transactions in the Market
Q4 2011
SALES ACTIVITY
—
VACANCY NET ABSORPTION CONSTRUCTION
—
RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
675 Ponce de Leon
$27,000,000
2,000,000
$13.50
Jamestown Properties
—
1400 Peachtree
$6,000,000
1.7-acres
$81.02
Dewberry Capital
—
728-736 West Peachtree
$4,439,600
25,400
$174.79
SunTrust Banks
1382 Peachtree St.
$4,200,000
30,448
$137.94
Big Brothers Big Sisters
Midtown
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Atlanta Gas Light
Ten Peachtree Place
260,000
Class A Renewal
SunTrust
Campanile
95,510
Class A Lease
Gensler
999 Peachtree
21,136
Class A Lease
HDR Engineering
1100 Peachtree
18,700
Class A Lease
•
Midtown saw occupancy drop in the third quarter. The year-to-date total absorption in the submarket is now at (239,871) SF; thanks mostly to vacating Class B tenants.
•
Despite the occupancy loss, third quarter leasing in the submarket was among the most active in Atlanta’s office market. Atlanta Gas Light’s 260,000 SF lease renewal at Ten Peachtree Place is the largest transaction so far this year.
•
For the final quarter of the year, Midtown is expected to see more move-ins than move-outs. There will be some shuffling around from existing tenants making intrasubmarket moves; however, leasing activity which occurred during the first half of the year will finally show up as positive absorption in the submarket. Still, Midtown will likely finish 2011 in negative territory.