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.
MARKET REPORT | Q3 2011 | ATLANTA OFFICE | NORTHEAST ATLANTA
IN THE NEWS
512 offices in 61 countries on 6 continents
• Primerica
chooses Duke Realty to build new Gwinnett headquarters: Primerica will be moving from its existing headquarters into a new 344,476 SF build-to-suit. Duke Realty has been chosen by the financial services firm to develop its new facility. The building will be built on a 30-acre parcel in Duke’s Legacy office park at Georgia Hwy. 120 and Meadow Church Road. It will be the first office building developed in the park; and also the first office building over 100,000 SF to go under construction in Northeast Atlanta since One Sugarloaf Centre in 2009. Primerica plans to consolidate from existing facilities in the submarket to the building once it is completed in April 2013. to add 500 jobs, expand Norcross HQ: Rock-Tenn just recently announced a headquarters expansion in the Northeast Atlanta submarket. The company is consolidating its offices in Chicago and St. Louis, bringing 500 new jobs to metro Atlanta. The expansion comes on the heels of Rock-Tenn’s acquisition of Smurfit-Stone Container Corporation. The state of Georgia and Gwinnett County offered $15.7 million in incentives for Rock-Tenn to expand its corporate headquarters here. Accounting, finance, information technology and supply chain jobs will be relocated to the new Atlanta headquarters. Rock-Tenn will occupy 68,666 SF at Duke Realty’s Hampton Green office building. UPDATE: Rock-Tenn leases an additional 14,471 SF at Hampton Green.
United States: 125 Canada: 38 Latin America: 18 Asia Pacific: 214 EMEA: 117
• Rock-Tenn
•
$1.5 billion in annual revenue
• Over 2.2 billion square feet under
management • Over 13,000 professionals
UNITED STATES: 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
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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
302 RESEARCH DR 2,710-58,369 SF Lease Deming Fish / Scott O’Halloran
454 SATELLITE BLVD 2,815-18,762 SF Lease/Sale Jodi Selvey
230 SCIENTIFIC DR 5,000-20,436 SF Lease Lee Evans / Brett Kingman
www.colliers.com/atlanta
250 SCIENTIFIC DR 4,776 SF Lease Lee Evans / Brett Kingman
SUGARLOAF VII 5,100 SF Lease Brett Kingman
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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