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.
MARKET REPORT | Q4 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: RockTenn 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 RockTenn’s acquisition of Smurfit-Stone Container Corporation. The state of Georgia and Gwinnett County offered $15.7 million in incentives for RockTenn to expand its corporate headquarters here. Accounting, finance, information technology and supply chain jobs will be relocated to the new Atlanta headquarters. RockTenn will occupy 68,666 SF at Duke Realty’s Hampton Green office building. UPDATE: RockTenn leases an additional 14,471 SF at Hampton Green.
United States: 125 Canada: 38 Latin America: 18 Asia Pacific: 214 EMEA: 117
• RockTenn
•
$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
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
www.colliers.com/atlanta
250 SCIENTIFIC DR 4,776 SF Lease Lee Evans
SUGARLOAF VII 5,100 SF Lease Jeff Kelley
Colliers International Two Midtown Plaza | Suite 1100 1349 West Peachtree Street, NE Atlanta, Georgia, 30309 TEL +1 404 888 9000 FAX +1 404 870 2845
COLLIERS INTERNATIONAL ATLANTA OFFICE SPECIALISTS: Bob Allen
Bob Mathews
Lee Evans
Craig Mendel
Deming Fish
Scott O’Halloran
Huston Green
Hugh Pafford
Tim Huffman
Jodi Selvey
Russ Jobson
Fred Sheats
Jeff Kelley
Pete Shelton
Drew Lavine
Hayes Swann
Michael Lipton
Andrew Walker
Nicole Littleton
Bob Ward
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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