Q4 2010 | NORTHEAST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS
Square Feet
NEW SUPPLY, ABSORPTION AND VACANCY RATES 300,000
24%
200,000
22% 20%
100,000 18%
Total SF
18,981,108
Vacancy Rate
21.1%
YTD Net Absorption
182,850
YTD Deliveries
127,226
0 4Q09
1Q10
2Q10
3Q10
4Q10
16%
(100,000)
14%
(200,000)
12% Absorption
Deliveries
Under Construction
64,162
Avg. Class A Rate
$19.64
Source: CoStar Property
Vacancy
MARKET INDICATORS Q4 2010 VACANCY
NEXT QTR
UPDATE Recent Transactions in the Market SALES ACTIVITY
—
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
4365 Shackleford Ct.
$1,960,000
21,034
$93.18
Powder Horn Invest.
500 Pinnacle Ct.
$1,195,000
43,433
$27.51
Cape Engineering
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
Hospital Corp. of America
5707 Peachtree Pkwy.
100,000
Class A Renewal
NCS Pearson
4365 River Green Pkwy.
23,354
Class B Renewal
Shorter University
3805 Crestwood Pkwy.
21,895
Class A Lease
Westfield Insurance
1960 Satellite Blvd.
19,178
Class A Lease
•
With the exception of NCR’s large move into Satellite Place in the first quarter, activity has been mostly balanced in the Northeast Atlanta office submarket. There were a number of transactions between 10,000-25,000 SF that took place in 2010; however, there were also a host of move-outs in the submarket including Financial Freedom at 190 Technology Pky., Reynolds & Reynolds at 3575 Koger Blvd. and Sprint at 6575 The Corners Pkwy.
•
Office vacancy has held steady throughout 2010 in the submarket. This is due to the balanced activity. Looking ahead, the same can be expected.
•
Because Northeast Atlanta is a niche market, it will likely be one of the last to fully recover from the most recent downturn. The majority of leasing activity in Atlanta is focused on the urban core and also Central Perimeter and North Fulton.