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
—
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.
MARKET REPORT | Q2 2010 | ATLANTA OFFICE | NORTHEAST ATLANTA
IN THE NEWS • NCR
480 offices in 61 countries on 6 continents
• NCR
United States: 135 Canada: 39 Latin America: 17 Asia Pacific: 194 EMEA: 95
opens new home in Duluth: NCR made the move to its new headquarters at 700 Satellite Place in first quarter bringing the building to 100% occupancy. The company also expanded its office footprint by 57,058 SF at 2651 Satellite Blvd. Initially, NCR’s relocation and expansion are likely to bring around 1,250 jobs to the area; however, the company expects to create over 3,000 jobs within the next five years. is economic engine to Gwinnett County: Attracting the $1.9 billion Fortune 500 company NCR to Gwinnett is expected to lead to even more growth for the county. The office market here has begun to see a pickup in activity as of late. NCR’s recent move to the county has likely had a role in attracting new business to the area. In addition, housing and retail are benefitting from the company’s relocation as well.
• Texas
bioscience testing lab chooses Norcross: QualTex Laboratories is locating to 32,000 SF at Northwood Circle in Norcross. Although the lease is for warehouse space, the move raises Northeast Atlanta’s profile as a bioscience destination and could attract similar type companies to office buildings in the submarket. This is yet one more example of Northeast Atlanta becoming the hub of new industry growth. Alternative energy firms have also chosen sites in the submarket for their operations.
•
$2 billion in annual revenue
• Over 2 billion square feet under
management • Over 15,000 professionals
UNITED STATES: AT A GLANCE | NCR opens new home in Duluth •
NCR moved into 104,787 SF of office space at 700 Satellite Place in the first quarter of 2010.
•
The move was a relocation from the company’s longtime headquarters in Dayton, Ohio.
•
NCR says it will create 3,000 new jobs in Georgia within five years.
•
Over $100 million in incentives were offered to NCR to relocated to the metro Atlanta area.
COLLIERS INTERNATIONAL | ATLANTA OFFICE | NORTHEAST ATLANTA LISTINGS
230 SCIENTIFIC DR 5,000-20,436 SF Lease Lee Evans / Brett Kingman
250 SCIENTIFIC DR 3,000-27,630 SF Lease Lee Evans / Brett Kingman
3555 KOGER BLVD 2,984 SF SubLease Brett Kingman / Craig Mendel
SUWANEE GATEWAY 142,427 SF Lease Lee Evans / Scott O’Halloran
454 SATELLITE BLVD 2,815-18,762 SF Lease/Sale Jodi Selvey / Patrick Braswell
425 BUFORD HWY. 16,500 SF Sublease Michael Lipton / Craig Mendel
www.colliers.com/atlanta
Colliers International 1349 West Peachtree Street Suite 1100 Atlanta, Georgia, 30309 TEL +1 404 888 9000 FAX +1 404 870 2845
COLLIERS INTERNATIONAL ATLANTA OFFICE SPECIALISTS: Bob Allen
Bob Mathews
Neal Baker
Craig Mendel
Patrick Braswell
Scott O’Halloran
Lee Evans
Hugh Pafford
Russ Jobson
Jodi Selvey
Nicole Kamen
Fred Sheats
Jeff Kelley
Pete Shelton
Brett Kingman
Andrew Walker
Michael Lipton
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 480 offices throughout more than 61 countries worldwide.
Accelerating success.