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.
MARKET REPORT | Q4 2010 | ATLANTA OFFICE | NORTHEAST ATLANTA
IN THE NEWS
480 offices in 61 countries on 6 continents
• HOT
lane project launched along I-85: Georgia transportation agencies have officially kicked off the new high-occupancy toll lane project along Interstate 85 which aims to allow motorists the ability to avoid the heaviest congestion along I-85 during peak hours. These lanes will be a new experiment for metro Atlanta. They are designed to charge a toll to drivers wishing to escape rush hour traffic congestion along I-85. The electronic toll will fluctuate depending on the level of congestion on the highway at the time the motorist enters the lane. The goal for the project is to ensure one lane of traffic is moving at least 45 miles per hour during the busiest times of the day. Work on the lanes is expected to be completed sometime next summer. One HOT lane on each side of the highway will stretch 15-miles from Chamblee-Tucker Road to Old Peachtree Road. deal shows some return to market: Suwanee Gateway, a five-story 142,427 SF recently sold to SDM Partners for $7.7 million. The transaction shows one of the type of properties investors are most interested in currently: distressed assets. The other would be core properties usually identified as well-leased, well-located, prime assets. Suwanee Gateway was developed and delivered by Opus South in 2008. The tough leasing market kept the property vacant, which it remains today. Subsequently, the lender foreclosed on the property and put it up for sale. SDM Partners beat out a dozen other offers to win the bidding for the property.
United States: 135 Canada: 39 Latin America: 17 Asia Pacific: 194 EMEA: 95
• Gwinnett
AT A GLANCE | NCR opens new home in Duluth •
NCR moved into 104,787 SF of office space at 700 Satellite Place in the first quarter of 2010.
•
The move was a relocation from the company’s longtime headquarters in Dayton, Ohio.
•
NCR says it will create 3,000 new jobs in Georgia within five years.
•
Over $100 million in incentives were offered to NCR to relocated to the metro Atlanta area.
COLLIERS INTERNATIONAL | ATLANTA OFFICE | NORTHEAST ATLANTA LISTINGS
•
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• Over 2 billion square feet under
management • Over 15,000 professionals
UNITED STATES: Colliers International 1349 West Peachtree Street Suite 1100 Atlanta, Georgia, 30309 TEL +1 404 888 9000 FAX +1 404 870 2845
COLLIERS INTERNATIONAL ATLANTA OFFICE SPECIALISTS: Bob Allen
Craig Mendel
Lee Evans
Scott O’Halloran
Deming Fish
Hugh Pafford
Huston Green
Jodi Selvey
Russ Jobson
Fred Sheats
Nicole Kamen
Pete Shelton
Jeff Kelley
Hayes Swann
Brett Kingman
Andrew Walker
Michael Lipton
Bob Ward
Bob Mathews
230 SCIENTIFIC DR 5,000-20,436 SF Lease Lee Evans / Brett Kingman
250 SCIENTIFIC DR 3,000-27,630 SF Lease Lee Evans / Brett Kingman
454 SATELLITE BLVD 2,815-18,762 SF Lease/Sale Jodi Selvey
3555 KOGER BLVD 2,984 SF SubLease Brett Kingman / Craig Mendel
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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 480 offices throughout more than 61 countries worldwide.
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