1Q 2012 | Northeast Atlanta Office | Market Report

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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.


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