Q1 2011 | NORTHEAST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS
Square Feet
NEW SUPPLY, ABSORPTION AND VACANCY RATES
169,275,384
Total SF
1,500,000
18%
Vacancy Rate
1,000,000
16%
YTD Net Absorption
642,736
YTD Deliveries
482,223
Under Construction
215,000
500,000 14% 0 (500,000)
1Q10
2Q10
3Q10
4Q10
1Q11
12%
(1,000,000)
10%
(1,500,000)
8% Absorption
Deliveries
14.8%
Avg. Warehouse Rate
$3.39 NNN
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q1 2011
UPDATE Recent Transactions in the Market
Q2 2011
SALES ACTIVITY
—
VACANCY NET ABSORPTION CONSTRUCTION RENTAL RATE
—
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
235 Hog Mountain Rd.-A
$22,000,000
459,134
$47.92
LaSalle Investment Mgmt
—
2221 Northmont Pkwy.-700
$14,500,000
171,286
$84.65
Colony Realty Advisors
—
3025 Evergreen Dr.
$5,189,000
199,738
$25.98
Air Gas Safety
265 John B. Brooks Rd.
$3,100,000
83,113
$37.30
RESILUX America LLC
Northeast
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Echosphere
Suwanee Creek Bus. Park
95,538
Warehouse Renewal
C&L Logistics
6550 Jimmy Carter Blvd.
80,342
Warehouse Lease
SED International
3505 Newpoint Pkwy.
71,884
Warehouse Lease
Hilldrup Moving & Storage
Progress Distr. Ctr. III
62,500
Warehouse Lease
•
Northeast Atlanta was one of six industrial submarkets to experience positive absorption in the first quarter. The submarket had the second highest occupancy increase during the period at 642,736 SF. The largest move-in was Aldi Foods which occupied 482,223 SF in its newly delivered build-to-suit.
•
Vacant space in Northeast Atlanta remains the highest in all of Atlanta’s industrial market. The good news is the submarket’s vacancy rate has been on a downwards trend since this time last year.
•
The overall average rental rate for Northeast Atlanta showed no movement from the prior quarter. Rental rates here are likely to remain steady for at least the next few quarters.
•
The only remaining building under construction in the submarket is FedEx Ground’s new distribution center of 215,000 SF. The project recently broke ground and is scheduled for a fourth quarter delivery.