Q2 2011 | NORTHEAST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS
169,192,035
Total SF
1,000,000
16%
Vacancy Rate
800,000
15%
Square Feet
NEW SUPPLY, ABSORPTION AND VACANCY RATES
14%
600,000
YTD Net Absorption
809,234
YTD Deliveries
482,223
Under Construction
204,250
Avg. Warehouse Rate
$3.39 NNN
13%
400,000
12% 200,000
11%
0 (200,000)
14.8%
10% 2Q10
3Q10
4Q10
1Q11
2Q11
(400,000)
9% 8%
Absorption
Deliveries
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q2 2011
UPDATE Recent Transactions in the Market
Q3 2011
SALES ACTIVITY VACANCY PROPERTY ADDRESS
NET ABSORPTION CONSTRUCTION RENTAL RATE
— —
SALE PRICE
SIZE SF
PRICE / SF
BUYER
8 Mount Moriah Rd.
$11,975,000
155,000
$77.26
Welsh Property Trust
—
1685 Boggs Rd.
$7,975,000
164,008
$48.63
Welsh Property Trust
—
6100 Atlantic Blvd.
$7,000,000
217,497
$32.18
Hyundai Motor America
2940 Old Norcross Rd.
$6,175,000
132,394
$46.64
Welsh Property Trust
Northeast
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Bagcraft
6448 Best Friend Rd.
225,984
Warehouse Lease
KPG Telecommunications
Shawnee Ridge - E1
140,000
Warehouse Lease
HD Supply
1950 N Norcross Tucker Rd.
120,000
Warehouse Expansion
CMD
Shawnee Ridge - C1
67,200
Warehouse Lease
•
For the third consecutive quarter, industrial occupancy in the Northeast Atlanta market increased. Second quarter absorption totaled 128,024 SF in Atlanta’s largest industrial submarket. Since this time last year, Northeast Atlanta has seen over 1.3 million square feet of space absorbed.
•
Second quarter’s occupancy gain in Northeast Atlanta can be attributed to the increased demand from smaller industrial tenants. The largest move-in over the past three months was TYCO Fire which moved into 96,840 SF. Tenants ranging between 20,000 to 60,000 SF were the most active.
•
Although the vacancy rate decreased only slightly from the previous quarter, industrial vacancy in Northeast Atlanta has dropped by 0.5% since the middle of last year; amounting to 703,692 SF filled.
•
The average industrial rental rate for the submarket remained level yet again, suggesting stabilization.