Q3 2010 | NORTHEAST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES
Total SF
300,000
24%
Vacancy Rate
200,000
22% 20%
100,000 18%
18,930,595 21.6%
YTD Net Absorption
165,733
YTD Deliveries
127,226
0 3Q09
4Q09
1Q10
2Q10
3Q10
16%
(100,000)
14%
(200,000)
12% Absorption
Deliveries
Under Construction
64,162
Avg. Class A Rate
$19.77
Source: CoStar Property
Vacancy
MARKET INDICATORS Q3 2010
NEXT QTR
UPDATE Recent Transactions in the Market SALES ACTIVITY
VACANCY NET ABSORPTION
—
CONSTRUCTION RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
Suwanee Gateway
$7,700,000
142,427
$54.06
SDM Partners
Loganville Medical Ctr.
$5,275,000
15,242
$346.08
RiverOak Investment
1854 Shackleford Ct.
$3,530,000
94,677
$37.28
Roberts Commercial RE
400 Pinnacle Way
$1,180,000
46,316
$25.48
Omega Bio Tek
Northeast
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Ashworth Univserity
6625 The Corners Pkwy.
29,877
Class A Lease
Liberty Mutual
2530 Sever Rd.
26,165
Class A Lease
NCS Pearson
4365 River Green Pkwy.
23,354
Class B Renewal
Westfield Insurance
1960 Satellite Blvd.
19,178
Class A Lease
•
A few significant move-outs affected third quarter absorption in the Northeast Atlanta submarket. Occupancy dropped over 100,000 SF thanks to vacancies placed on the market by Reynolds & Reynolds, Sprint Store and PC Group Holdings.
•
If not for NCR’s move into Satellite Place at the beginning of the year, Northeast Atlanta’s year-todate absorption would not be positive.
•
Despite a small uptick in third quarter leasing activity, not much is expected to change for the submarket in the near term. Northeast Atlanta remains a niche market for certain tenants. The largest prospects active in the market are looking for more up-to-date, urban space options.
•
Northeast Atlanta’s average rental rate is virtually unchanged from two years ago.