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.
MARKET REPORT | Q2 2011 | ATLANTA OFFICE | NORTHEAST ATLANTA
IN THE NEWS
512 offices in 61 countries on 6 continents
• Silicon
Valley chip-maker AMD to open Atlanta data center: Advanced Micro Devices Inc. (AMD) will be opening a new $100 million data center in Northeast Atlanta. The company plans to consolidate smaller data centers across North America to the larger facility. The 153,000 square foot data center will be located in Suwanee, with the first phase to be completed by the second quarter of 2012. AMD conducted a two year search across the nation to find a location best suited for its new state-of-the-art facility. The choice came down to the location here against two locations in North Carolina. The site in Northeast Atlanta was chosen because of inexpensive power, available real estate and a multimilliondollar incentive package. In addition, Atlanta is known to be relatively free of natural disasters which suits data centers well since they need to be operating 24 hours a day, 7 days a week. in the market with 350K sq. ft. RFP: Primerica is out in the market with a request for proposal of 350,000 square feet. This is one of the largest RFPs currently in the entire Atlanta market. Those close to the announcement mention a build-to-suit is possible for such a large requirement. Still, the company says it is only in the early stages of assessing property options. Primerica is currently headquartered in Duluth and the company is likely to remain in the Northeast Atlanta submarket should it decide to relocate. The most recent news states Primerica is considering the build-to-suit to be located either in Duke Realty’s Legacy Park or Taylor & Mathis’ Sugarloaf Corporate Center.
United States: 125 Canada: 38 Latin America: 18 Asia Pacific: 214 EMEA: 117
• Primerica
AT A GLANCE | AMD to Open Atlanta Data Center
•
Advanced Micro Devices will open a $100 million, 153,000 SF data center in Suwanee, with the first phase to be completed in 2012.
•
The Silicon Valley chip-maker is consolidating from smaller data centers across the nation.
•
•
Inexpensive power and a large incentives package helped attract AMD to the area. AMD could invest $250 million in the data center over the next decade.
COLLIERS INTERNATIONAL | ATLANTA OFFICE | NORTHEAST ATLANTA LISTINGS
•
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COLLIERS INTERNATIONAL ATLANTA OFFICE SPECIALISTS: Bob Allen
Bob Mathews
Lee Evans
Craig Mendel
Deming Fish
Scott O’Halloran
Huston Green
Hugh Pafford
Tim Hoffman
Jodi Selvey
Russ Jobson
Fred Sheats
Nicole Kamen
Pete Shelton
Jeff Kelley
Hayes Swann
Brett Kingman
Andrew Walker
Drew Levine
Bob Ward
Michael Lipton
230 SCIENTIFIC DR 5,000-20,436 SF Lease Lee Evans / Brett Kingman
250 SCIENTIFIC DR 3,000-13,389 SF Lease Lee Evans / Brett Kingman
454 SATELLITE BLVD 2,815-18,762 SF Lease/Sale Jodi Selvey
SUGARLOAF VII 5,100 SF Lease Brett Kingman
www.colliers.com/atlanta
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 512 offices throughout more than 61 countries worldwide.
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