Q3 2011 | NORTHEAST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES
Square Feet
100,000 80,000 60,000 40,000 20,000 0 (20,000) (40,000) (60,000) (80,000) (100,000)
4Q10
1Q11
2Q11
3Q11
Vacancy Rate
19.2%
20%
YTD Net Absorption
15,789
12% Deliveries
YTD Deliveries
0
Under Construction
0
16% 14%
Absorption
23,062,610
22%
18% 3Q10
Total SF
Vacancy
Avg. Class A Rate
$19.68
Source: CoStar Property, Colliers Research
MARKET INDICATORS Projected
Q3 2011
UPDATE Recent Transactions in the Market
Q4 2011
SALES ACTIVITY VACANCY
—
NET ABSORPTION CONSTRUCTION RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
Gwinnett Center
$14,100,000
263,862
$53.44
Global Growth Trust
—
6625 The Corners
$14,100,000
101,426
$139.02
Rosemont Realty
—
5707 Peachtree Pkwy.
$13,800,000
100,000
$138
Rosemont Realty
3585 Engineering Dr.
$13,600,000
98,092
$138.65
Rosemont Realty
Northeast
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Primerica
Legacy Office Park
344,476
Class A Build-To-Suit
Rock-Tenn
Hampton Green
68,666
Class A Lease
Fleetcor
5445 Triangle Pkwy.
65,846
Class A Lease
New Prosys
6575 The Corners Pkwy.
42,000
Class A Lease
•
For the first time this year, Northeast Atlanta saw meaningful office absorption. Over 80,000 SF of office space was absorbed in the submarket in the third quarter. Part of the occupancy increase comes from Rock-Tenn which moved into a portion of its new office space at Hampton Green.
•
Northeast Atlanta has weathered the brunt of the economic downturn for the most part. Though most of the office deals continue to occur in Atlanta’s more prevalent submarkets, Northeast Atlanta is winning some important lease assignments like Rock-Tenn, Fleetcor and Primerica.
•
Heading into 2012, the submarket should see some momentum from recent transactions that have taken place. Although market conditions remain modest, occupancy levels are expected to trend upwards in the coming months.