1Q 2011 | Atlanta Northeast Atlanta Office | Market Report

Q1 2011 | NORTHEAST ATLANTA

ATLANTA

SUBMARKET REPORT

TRENDS & HIGHLIGHTS

Square Feet

NEW SUPPLY, ABSORPTION AND VACANCY RATES

Total SF

21,969,823

400,000

22%

Vacancy Rate

300,000

20%

YTD Net Absorption

200,000 18% 100,000

19.9% (13,552)

YTD Deliveries

0

Under Construction

0

16% 0 (100,000)

1Q10

2Q10

3Q10

4Q10

1Q11

(200,000)

14% 12%

Absorption

Deliveries

Avg. Class A Rate

$19.84

Source: CoStar Property, Colliers Research

Vacancy

MARKET INDICATORS Projected

VACANCY

Q1 2011

Q2 2011

—

—

UPDATE Recent Transactions in the Market SALES ACTIVITY

NET ABSORPTION CONSTRUCTION

—

—

RENTAL RATE

PROPERTY ADDRESS

SALE PRICE

SIZE SF

PRICE / SF

BUYER

4365 Shackleford Ct.

$1,960,000

21,034

$93.18

Powder Horn Invest.

5984 S Norcross Tucker Rd.

$1,275,000

22,674

$56.23

Atlas GA II Spe LLC

500 Pinnacle Ct.

$1,195,000

43,433

$27.51

Cape Engineering

1990 Riverside Pkwy.

$1,050,000

5,900

$177.97

Gary Heiman

Northeast

LEASING ACTIVITY

www.colliers.com/atlanta

TENANT

PROPERTY ADDRESS

SIZE SF

TYPE

AMD

New Suwanee Data Ctr.

153,000

Class A Data Center BTS

Quikrete

6340 Sugarloaf Pkwy.

26,500

Class A Lease

Career Inst. of Health & Tech.

2825 Breckinridge Blvd.

15,200

Class B Lease

Comverge

5390 Triangle Pkwy.

9,911

Class B Lease

•

Activity in Northeast Atlanta continues to be lackluster. First quarter office absorption was negative, totaling (13,552) square feet. There were no significantly large move-ins or move-outs to report.

•

Overall vacancy in the submarket is up from this time last year; however, since then, the vacancy rate in Northeast Atlanta hs remained flat, hovering around the 20% mark.

•

The average rental rate in Northeast Atlanta remains the lowest of Atlanta’s major office submarkets.

This is mainly due to the majority of product in this area being Class B and Class C space.

•

Office leasing in Atlanta continues to be focused on the city’s core office submarkets. Northeast Atlanta will secure its host of deals, however, the overall office market will need to be in full recovery before the submarket sees more consistent gains in occupancy levels.

MARKET REPORT | Q1 2011 | ATLANTA OFFICE | NORTHEAST ATLANTA

IN THE NEWS

480 offices in 61 countries on 6 continents

• Silicon

Valley chip-maker AMD to open Atlanta data center: Advanced Micro Devices Inc. (AMD) will be opening a new $100 million data center in Northeast Atlanta. The company plans to consolidate smaller data centers across North America to the larger facility. The 153,000 square foot data center will be located in Suwanee, with the first phase to be completed by the second quarter of 2012. AMD conducted a two year search across the nation to find a location best suited for its new state-of-the-art facility. The choice came down to the location here against two locations in North Carolina. The site in Northeast Atlanta was chosen because of inexpensive power, available real estate and a multimilliondollar incentive package. In addition, Atlanta is known to be relatively free of natural disasters which suits data centers well since they need to be operating 24 hours a day, 7 days a week. in the market with 350K sq. ft. RFP: Primerica is out in the market with a request for proposal of 350,000 square feet. This is one of the largest RFPs currently in the entire Atlanta market.

Those close to the announcement mention a build-to-suit is possible for such a large requirement. Still, the company says it is only in the early stages of assessing property options. Primerica is currently headquartered in Duluth and the company is likely to remain in the Northeast Atlanta submarket should it decide to relocate.

United States: 135 Canada: 39 Latin America: 17 Asia Pacific: 194 EMEA: 95

• Primerica

•

$2 billion in annual revenue

• Over 2 billion square feet under

management • Over 15,000 professionals

UNITED STATES: AT A GLANCE | AMD to Open Atlanta Data Center

•

Advanced Micro Devices will open a $100 million, 153,000 SF data center in Suwanee, with the first phase to be completed in 2012.

•

The Silicon Valley chip-maker is consolidating from smaller data centers across the nation.

•

•

Inexpensive power and a large incentives package helped attract AMD to the area.

AMD could invest $250 million in the data center over the next decade.

COLLIERS INTERNATIONAL | ATLANTA OFFICE | NORTHEAST ATLANTA LISTINGS

Colliers International Two Midtown Plaza | Suite 1100 1349 West Peachtree Street, NE Atlanta, Georgia, 30309 TEL +1 404 888 9000 FAX +1 404 870 2845

COLLIERS INTERNATIONAL ATLANTA OFFICE SPECIALISTS: Bob Allen

Bob Mathews

Lee Evans

Craig Mendel

Deming Fish

Scott O’Halloran

Huston Green

Hugh Pafford

Tim Hoffman

Jodi Selvey

Russ Jobson

Fred Sheats

Nicole Kamen

Pete Shelton

Jeff Kelley

Hayes Swann

Brett Kingman

Andrew Walker

Drew Levine

Bob Ward

Michael Lipton

230 SCIENTIFIC DR 5,000-20,436 SF Lease Lee Evans / Brett Kingman

250 SCIENTIFIC DR 3,000-13,389 SF Lease Lee Evans / Brett Kingman

454 SATELLITE BLVD 2,815-18,762 SF Lease/Sale Jodi Selvey

2397 HUNTCREST WAY 10,000 SF Lease Jodi Selvey

www.colliers.com/atlanta

This market report is a research document of Colliers International. Information herein has been deemed reliable and no representation is made as to the accuracy thereof. Colliers International-Atlanta, Inc., and certain of its subsidiaries, is an independently owned and operated business and a member firm of Colliers International Property Consultants, an affiliation of independent companies with over 480 offices throughout more than 61 countries worldwide.

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