4Q 2011 | Atlanta Northeast Office | Market Report

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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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