Q2 2012 | NORTHEAST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS
170,658,627
NEW SUPPLY, ABSORPTION AND VACANCY RATES
Total SF
1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 (200,000)
Vacancy Rate
15%
13%
14%
Square Feet
13% 12% 11% 10%
YTD Net Absorption
1,845,715 27,500
YTD Deliveries
935,757
Under Construction
9% 2Q11
3Q11
Absorption
4Q11
1Q12
Deliveries
2Q12
8%
Avg. Warehouse Rate
$3.44 NNN
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Q2 2012
Projected
UPDATE Recent Transactions in the Market
Q3 2012
SALES ACTIVITY
VACANCY
PROPERTY ADDRESS
NET ABSORPTION CONSTRUCTION RENTAL RATE
—
SALE PRICE
SIZE SF
PRICE / SF
BUYER
Regency Bus. Park I & II
$11,554,500
285,148
$40.52
Trident Capital
6485 Crescent Dr.
$9,732,500
360,460
$27
Ole Mexican Foods
Oakbrook North & South
$7,720,650
248,741
$31.04
Trident Capital
430 Technology Pky.
$4,500,000
55,000
$81.82
Ed Wideman
Northeast
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
International Paper
300 Horizon Dr.
356,000
Warehouse Lease
Amware Logistics
Newpoint Point DC-Bld. 2A
350,350
Warehouse Renewal
UTI Worldwide
1100 Laval Blvd.
346,614
Warehouse Renewal & Exp
US Lumber
Gwinnett Regional DC
215,690
Warehouse Renewal
•
Northeast Atlanta saw the largest occupancy gain in Atlanta in second quarter. The submarket accounted for 61% of total industrial absorption in Atlanta. Bed Bath & Beyond was the largest move-in occupying 810,000 square feet at Walnut Fork Industrial Park in Jackson County.
•
As of mid-year 2012, Northeast Atlanta has the most industrial space under construction. Over 90% of the space is in build-to-suits for Mitsubishi, FedEx and Bitzer US. Even more construction is expected in the near future from Kubota and Toyota.
•
The Northeast Atlanta industrial submarket is Atlanta’s strongest in 2012 and will likely finish the year as such. The submarket is benefitting from both big deal transactions and also from “bread and butter” type leases. For the foreseeable future, both types of leasing activity are expected to continue.