Q2 2010 | NORTHEAST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES
Total SF
200,000
Vacancy Rate
24%
150,000
22%
100,000 50,000
20%
0 (50,000)
18% 2Q09
3Q09
4Q09
1Q10
2Q10
(100,000)
16%
(150,000)
18,917,898 21.3%
YTD Net Absorption
148,132
YTD Deliveries
0
Under Construction
0
14%
(200,000) (250,000)
12% Absorption
Deliveries
Avg. Class A Rate
$19.52
Source: CoStar Property
Vacancy
MARKET INDICATORS Q2 2010 VACANCY
NEXT QTR
UPDATE Recent Transactions in the Market SALES ACTIVITY
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PROPERTY ADDRESS
NET ABSORPTION CONSTRUCTION
—
—
RENTAL RATE
SALE PRICE
SIZE SF
PRICE / SF
BUYER
6340 Sugarloaf Pky.
$16,000,000
103,742
$154.23
Kapoor & Sons, LLC
250 Scientific Dr.
$7,150,000
45,117
$158.48
UNUM Life Insurance Co.
Loganville Medical Ctr.
$5,275,000
15,242
$346.08
RiverOak Investment
2400 Meadowbrook Pky.
$2,300,000
29,906
$76.91
American CyberSystems
Northeast
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
IKON Office Solutions
Sugarloaf I
90,350
Class B Renewal
New Life Academy of Excell.
4725 River Green Pkwy.
40,577
Class C Lease
National Guaranty Insurance
1855 Satellite Blvd.
31,560
Class B Lease
Fiserv
The Forum
30,935
Class A Renewal
•
Following a strong first quarter of absorption, Northeast Atlanta’s performance in second quarter was lackluster. There was virtually no change in occupancy levels between quarters and the vacancy rate remained unchanged at 21.3%.
•
Mostly bolstered by NCR’s headquarter relocation in the first quarter, Northeast’s year-to-date absorption is second highest in the Atlanta market. Since this time last year, the submarket’s office occupancy has increased by 187,000 SF.
•
Northeast Atlanta’s leasing activity has been fairly consistent over the first half of the year. This will likely lead to a positive year of absorption for the submarket.
•
Sales activity has been strongest in Northeast Atlanta this year, accounting for 21% of total sales volume.