Q4 2011 | NORTHEAST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES
Total SF
200,000
Vacancy Rate
19.4%
YTD Net Absorption
65,919
22%
Square Feet
150,000
20%
100,000 50,000
18%
0
16%
(50,000)
4Q10
1Q11
2Q11
3Q11
4Q11
14%
(100,000) (150,000)
12% Absorption
Deliveries
Vacancy
23,160,485
YTD Deliveries Under Construction Avg. Class A Rate
0 344,476 $19.52
Source: CoStar Property, Colliers Research
MARKET INDICATORS Projected
Q4 2011
UPDATE Recent Transactions in the Market
Q1 2012
SALES ACTIVITY VACANCY NET ABSORPTION CONSTRUCTION RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
4205 River Green Pkwy.
$17,925,000
125,800
$142.49
Cole Real Estate Inv.
—
6700 Sugarloaf Pkwy.
$7,455,344
90,350
$82.52
Blackstone Real Estate
—
2750 Meadow Church Pkwy
$4,337,757
51,131
$84.84
Blackstone Real Estate
1 Technology Pkwy.
$4,125,000
54,946
$75.07
Acadia Healthcare
Northeast
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
CareerBuilder.com
5550 Peachtree Pkwy.
93,000
Class B Renewal
Duke Realty
3715 Davinci Ct.
26,277
Class A Lease
Intuitive Surgical
3715 Davinci Ct.
18,000
Class A Lease
RockTenn
Hampton Green I
14,471
Class Expansion
•
As expected, Northeast Atlanta saw office occupancy increase for the second consecutive quarter. The submarket absorbed over 150,000 SF and was the second most positive office submarket in Atlanta this period, behind only Northwest Atlanta.
•
The largest move-ins of fourth quarter were RockTenn which occupied the second phase of its lease at Hampton Green I and New Prosys which moved into 42,296 SF at 6575 The Corners Pkwy.
•
Over the past six months, tenants below 20,000 SF have accounted for 37% of Northeast Atlanta’s occupancy gain. Small business growth is slowly returning to the submarket.
•
Activity in the year ahead is not expected to deviate much from this past year’s. Like most areas of the city, Northeast Atlanta will see only modest leasing over the next twelve months.