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.
MARKET REPORT | Q1 2012 | ATLANTA OFFICE | NORTHEAST ATLANTA
IN THE NEWS
522 offices in 62 countries on 6 continents
• United
Healthcare seeks 86K for new call center: United Healthcare is in the market for 86,000 SF to house a new call center in Northeast Atlanta. This would expand the company’s presence in the submarket where it already occupies almost 74,000 SF in the Peachtree Corners area. The new space is anticipated to be somewhere near Gwinnett Place Mall, possibly at Satellite Place.
• Assurant
adding jobs, expanding data center: Insurance provided Assurant is expanding its operations in metro Atlanta including adding up to 100 jobs at its Duluth call center in Northeast Atlanta. The jobs will be in customer service to support the company’s Specialty Property unit which accounts for 57% of Assurant’s net operating income. to add 500 jobs, expand Norcross HQ: RockTenn just recently announced a headquarters expansion in the Northeast Atlanta submarket. The company is consolidating its offices in Chicago and St. Louis, bringing 500 new jobs to metro Atlanta. The expansion comes on the heels of RockTenn’s acquisition of Smurfit-Stone Container Corporation. The state of Georgia and Gwinnett County offered $15.7 million in incentives for RockTenn to expand its corporate headquarters here. Accounting, finance, information technology and supply chain jobs will be relocated to the new Atlanta headquarters. RockTenn will occupy 68,666 SF at Duke Realty’s Hampton Green office building. UPDATE: RockTenn leases an additional 14,471 SF at Hampton Green.
United States: 147 Canada: 37 Latin America: 19 Asia Pacific: 201 EMEA: 118
• RockTenn
AT A GLANCE | Primerica to move to new Gwinnett HQ •
Build-to-suit headquarters to be built for Primerica by Duke Realty.
•
Building to consist of 344,476 SF on 30-acres. First building to be developed in Duke Realty’s Legacy office park.
•
Primerica to consolidate from its current headquarters on Breckinridge Boulevard. New facility will help the company streamline its operations.
•
Expected completion April 2013.
COLLIERS INTERNATIONAL | ATLANTA OFFICE | NORTHEAST ATLANTA LISTINGS
680 ENGINEERING 7,440-14,845 SF Lease Lee Evans
454 SATELLITE BLVD 2,815-18,762 SF Lease/Sale Jodi Selvey / Jill Bomar
230 SCIENTIFIC DR 3,612-20,436 SF Lease Lee Evans
PEACHTREE CORNERS CORPORATE CTR. 6,040-20,859 SF Lease Scott O’Halloran / Deming Fish
www.colliers.com/atlanta
250 SCIENTIFIC DR 4,776-8,139 SF Lease Lee Evans
•
$1.5 billion in annual revenue $1.8
• Over 2.5 2.2 billion square feet under
management • Over 12,000 13,000 professionals
UNITED STATES: 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
Jill Bomar
Craig Mendel
Lee Evans
Scott O’Halloran
Deming Fish
Hugh Pafford
Huston Green
Jodi Selvey
Tim Huffman
Fred Sheats
Russ Jobson
Pete Shelton
Jeff Kelley
Hayes Swann
Drew Lavine
Will Tyler
Michael Lipton
Andrew Walker
Nicole Littleton
Bob Ward
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 520 offices throughout 62 countries worldwide.
SUGARLOAF VII 5,100 SF Lease Jeff Kelley
Accelerating success.