Q2 2011 | NORTHEAST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 40,000
Square Feet
20,000
2Q10
3Q10
4Q10
1Q11
2Q11
(40,000)
22,107,858
22%
Vacancy Rate
20%
YTD Net Absorption
0 (20,000)
Total SF
18%
20.4% (43,851)
YTD Deliveries
0
Under Construction
0
16%
(60,000) 14%
(80,000) (100,000)
12% Absorption
Deliveries
Avg. Class A Rate
$19.76
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q2 2011
UPDATE Recent Transactions in the Market
Q3 2011
SALES ACTIVITY
—
VACANCY NET ABSORPTION CONSTRUCTION
—
RENTAL RATE
—
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
Corners Office Park
$53,500,000
399,885
$133.79
Rosemont Realty
2651 Satellite Blvd.
$18,600,000
308,000
$60.39
Black Diamond Capital
3039 Premier Pkwy.
$6,617,335
56,251
$117.64
Dr. 6650 LLC
1835 Shackleford Ct.
$1,900,000
56,540
$33.61
ADT Solutions
Northeast
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Rock-Tenn
Hampton Green
68,666
Class A Lease
Pond & Co.
Peachtree Ridge
38,000
Class A Renewal & Expansion
Turngate Holdings
3585 Engineering Dr.
11,494
Class A Lease
Ability Services Network
2397 Huntcrest Way
10,000
Class B Lease
•
Northeast Atlanta saw its office occupancy drop for the second straight quarter bringing year-todate absorption to (43,851) SF. There were few notable move-ins to report in second quarter, but a number of move-outs which is why the quarter finished negative.
•
The amount of vacant office space added in second quarter was pretty minimal considering the size of Northeast Atlanta. Although the overall vacancy rate increased slightly, for the most part it has remained level over the past three quarters.
•
The submarket’s leasing activity picked up a bit in the second quarter, though most of the transactions were from smaller tenants. Going forward, much of the same is expected through the end of the year. The submarket should finish 2011 with little to no change from the previous year.