Q3 2010 | NORTHEAST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS
Square Feet
NEW SUPPLY, ABSORPTION AND VACANCY RATES 1,500,000
15%
1,000,000
14% 13%
500,000
12% 0 (500,000)
3Q09
4Q09
1Q10
2Q10
3Q10
11% 10%
(1,000,000)
9%
(1,500,000)
8% Absorption
Deliveries
169,659,158
Total SF Vacancy Rate
14.5%
YTD Net Absorption
(1,131,624) 0
YTD Deliveries
482,000
Under Construction Avg. Warehouse Rate
$3.34 NNN
Source: CoStar Property
Vacancy
MARKET INDICATORS Q3 2010
NEXT QTR
UPDATE Recent Transactions in the Market SALES ACTIVITY
VACANCY NET ABSORPTION CONSTRUCTION
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RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
4103 Tench/300 Brogdon
$14,200,000
231,696
$61.29
Industrial Income Trust
2775 Horizon Ridge Ct.
$10,063,000
223,219
$45.08
Thermo Fisher Scientific
6775 Jimmy Carter Blvd.
$7,525,000
197,558
$38.09
Civic Development LLC
6448 Best Friend Rd.
$7,375,000
225,984
$32.64
Selig Enterprises
Northeast
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Lion Apparel
596 Bonnie Valentine Way
265,000
Distribution Lease
Ta Chen International
Northmont Distr. Ctr.-600
157,280
Warehouse Renewal
King’s Hawaiian
5420 H.F. Reed Ind. Park
111,880
Warehouse Lease
Cadillac Jack
2450 Satellite Blvd.
102,862
Warehouse/Distr. Lease
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Northeast Atlanta posted its second quarterly loss of occupancy this year in the third quarter. The submarket saw almost 700,000 SF of space given back by tenants. The largest vacancy this quarter was Kraft which relocated from 735,233 SF to its new build-to-suit in South Atlanta.
•
Northeast Atlanta retains the largest amount of vacant available space in the Atlanta industrial market. Over 24.5 million square feet of space is currently vacant in the submarket.
•
Third quarter leasing activity in Northeast Atlanta was modest with only a few transactions completed. Because of this, fourth quarter absorption is likely to be minimally positive.
•
Sale transactions in the submarket, both users and investors, picked up in third quarter. To date, over 3 million square feet in 31 properties have sold in Northeast Atlanta for a total volume of $132 million.