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
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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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