Q1 2012 | NORTHEAST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES
Total SF
200,000
Vacancy Rate
22%
150,000
20%
Square Feet
100,000 50,000
18%
0
16%
(50,000)
1Q11
2Q11
3Q11
4Q11
1Q12
14%
(100,000) (150,000)
12% Absorption
Deliveries
23,409,092 19.8%
YTD Net Absorption
(87,045)
YTD Deliveries Under Construction Avg. Class A Rate
0 344,476 $19.56
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q1 2012
UPDATE Recent Transactions in the Market
Q2 2012
SALES ACTIVITY VACANCY NET ABSORPTION CONSTRUCTION
—
—
RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
4205 River Green Pkwy.
$17,925,000
125,800
$142.49
Cole Real Estate Inv.
6700 Sugarloaf Pkwy.
$7,455,344
90,350
$82.52
Blackstone Real Estate
2750 Meadow Church Pkwy
$4,337,757
51,131
$84.84
Blackstone Real Estate
1 Technology Pkwy.
$4,125,000
54,946
$75.07
Acadia Healthcare
Northeast
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
CCI
3795 Data Dr.
55,000
Class B Lease
The Network
333 Research Ct.
34,000
Class B Renewal
LMS Intellibound
6525 The Corners Pky.
20,000
Class A Lease
Terminix International
3790 Data Dr.
15,762
Class B Renewal
•
After two consecutive quarters of positive absorption, Northeast Atlanta saw a net loss of tenants in the first quarter. Occupancy dropped by just over 87,000 square feet this period. As a result, vacancy increased to 19.8%.
•
Office leasing demand has yet to take hold in Northeast Atlanta; unlike neighboring submarkets such as North Fulton and Central Perimeter. The lack of activity is a product of the modest recovery. Atlanta’s more desirable submarkets are seeing the bulk of the leasing activity currently.
•
Through the end of the year, the same results are expected to continue in Northeast Atlanta. Office absorption, whether it be positive or negative, will be restrained. The submarket’s office vacancy will hover around the 20% mark until a full recovery takes hold.