Q4 2011 | MIDTOWN
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES
Square Feet
200,000 150,000 100,000 50,000 0 (50,000) (100,000) (150,000) (200,000) (250,000) (300,000)
22% 20% 18% 4Q10
1Q11
2Q11
3Q11
4Q11
16% 14%
Total SF
22,161,903
Vacancy Rate YTD Net Absorption
19.5% (144,941)
YTD Deliveries Under Construction
0 450,000
12% 10% Absorption
Deliveries
Avg. Class A Rate
$27.05
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q4 2011
UPDATE Recent Transactions in the Market
Q1 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
FDIC
10 Tenth Street
102,619
Class A Renewal
Paul Hastings
The Proscenium
65,000
Class A Lease
Ogilvy & Mather
271 17th Street
26,724
Class A Lease
Routematch Software
One Atlantic Center
23,137
Class A Lease
•
Office occupancy in Midtown increased by 77,783 SF in the fourth quarter. The largest contributor to this gain was Regions Bank which consolidated from multiple offices in Atlanta to the submarket. The bank occupied 80,000 SF at Atlantic Center Plaza this past quarter.
•
Midtown finished the year with negative net absorption of (144,941) SF. The main reason for this was Bank of America vacating 328,600 SF of Class B space at 715 Peachtree in the first quarter.
•
Despite the overall loss of occupancy in Midtown, Class A product in the submarket actually saw an overall gain in space absorbed. This space type’s vacancy rate decreased 2.2% in the past year.
•
Midtown’s 2011 leasing activity was relatively modest, with renewals by Alston & Bird and AGL topping the list. In 2012, the submarket should see a bit of an uptick in activity as conditions improve.