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.