Q2 2012 | NORTHEAST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES
Total SF
200,000
Vacancy Rate
22%
Square Feet
150,000
20%
100,000 50,000
18%
0
16%
(50,000)
2Q11
3Q11
4Q11
1Q12
2Q12
14%
(100,000)
12%
(150,000) Absorption
Deliveries
Vacancy
23,389,580 19.8%
YTD Net Absorption
56,624
YTD Deliveries Under Construction
0 344,476
Avg. Class A Rate
$19.46
Source: CoStar Property, Colliers Research
MARKET INDICATORS Projected
Q2 2012
UPDATE Recent Transactions in the Market
Q3 2012
SALES ACTIVITY VACANCY NET ABSORPTION CONSTRUCTION
—
RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
Peachtree Ridge
$14,944,427
161,411
$92.59
Ohio Public Employees
—
Satellite Place-1000 & 2100
$4,055,000
113,035
$35.87
Varde Partners
—
6825 Jimmy Carter Blvd.
$1,800,000
8,451
$212.99
Gingercrest Inc.
4355 Suwanee Dam Rd.
$1,750,000
11,150
$156.95
Professional Resource
Northeast
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
LSI Corp
4165 Shackleford
57,085
Class B Renewal
CCI
3795 Data Dr.
55,000
Class B Renewal
The Network
333 Research Ct.
34,000
Class B Renewal
LMS Intellibound
6525 The Corners Pky.
20,000
Class A Lease
•
Northeast Atlanta had the fourth highest amount of postivie absorption in Atlanta in second quarter. Occupancy increased by 147,475 SF in the quarter, bringing the year-to-date total into positive territory. The submarket benefited from continued growth in the small business sector.
•
Office leasing activity in the submarket remains sluggish. Most of the transactions occurring are renewals of existing spaces. In some instances, office tenants are being pulled out of their spaces in Northeast Atlanta, enticed by higher quality office and incentives in neighboring submarkets like Central Perimeter and North Fulton.
•
Not much is expected to change for Northeast Atlanta heading to the end of the year; however, the slowdown in small business growth could hurt the submarket’s future occupancy gains. More than likely, Northeast Atlanta will finish the year with no significant change in vacancy from a year ago.
MARKET REPORT | Q2 2012 | ATLANTA OFFICE | NORTHEAST ATLANTA
IN THE NEWS
522 offices in 62 countries on 6 continents
• Construction
to start on “diverging diamond” interchange in Gwinnett: Similar to the “diverging diamond” interchange recently constructed at Ashford-Dunwoody Road, Gwinnett County Department of Transportation will attempt to alleviate traffic congestion at Pleasant Hill road and the I-85 interchange by constructing its own similar project. In the next several weeks, construction will begin to add a series of lights and crossing lanes at the interchange which will bring traffic to the left side of the bridge, allowing cars to turn freely onto the interstate. In addition to this, a protected 8-foot sidewalk is planned next to the lanes. Completion of the new interchange is expected to be next summer. Gwinnett is also planning the same type of interchange improvements at Jimmy Carter Blvd. & I-85. 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.
United States: 147 Canada: 37 Latin America: 19 Asia Pacific: 201 EMEA: 118
• United
• 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. 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 Jill Bomar / 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. 6,040-41,607 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.