Q3 2011 | NORTHEAST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS
169,711,174
NEW SUPPLY, ABSORPTION AND VACANCY RATES
Total SF Vacancy Rate
16% 15%
800,000
14%
Square Feet
1,200,000 1,000,000 600,000
YTD Net Absorption
1,933,855
13%
400,000
12%
200,000
11%
0
(200,000)
14.2%
3Q10
4Q10
1Q11
2Q11
3Q11
10%
(400,000)
9%
(600,000)
8% Absorption
Deliveries
YTD Deliveries
482,223
Under Construction
204,250
Avg. Warehouse Rate
$3.53 NNN
Vacancy
Source: CoStar Property, Colliers Research
MARKET INDICATORS Projected
Q3 2011
UPDATE Recent Transactions in the Market
Q4 2011
SALES ACTIVITY VACANCY PROPERTY ADDRESS
NET ABSORPTION CONSTRUCTION
—
RENTAL RATE
SALE PRICE
SIZE SF
PRICE / SF
BUYER
Horizon Creek Distr. Ctr.
$29,000,000
482,896
$60.01
Lincoln Property Co.
—
1523 Steve Reynolds Ind.
$19,425,000
962,280
$20.19
Hillwood Investment
—
525 Marathon Pky.
$3,163,680
121,680
$26
525 Associates LLC
3420-3486 Oakwood Rd.
$2,900,000
52,951
$54.77
Performance Food Gr.
Northeast
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Progressive Lighting
3130 N. Berkeley Rd.
240,000
Warehouse Lease
Liberator
2745 Bankers Industrial
140,000
Manufacturing Renewal
American Air Filter
2624 Weaver Way Bldg. 2
126,698
Warehouse Renewal
Atlanta Oriental Foods
3029 Bankers Industrial
73,244
Warehouse Renewal
•
Industrial absorption in the Northeast Atlanta submarket was positive for the fourth consecutive period. Third quarter’s increase in occupancy was the strongest of the year so far with just over 1 million square feet absorbed in the submarket.
•
The majority of third quarter move-ins in Northeast Atlanta were from tenants ranging between 20,000 to 70,000 square feet. Whereas South Atlanta has seen the largest transactions this year, Northeast Atlanta has picked up the majority of the smaller transactions.
•
The submarket should finish 2011 with its first positive year since 2008. The industrial vacancy rate in the submarket will finish around 14% this year; which is 1.7% off Northeast Atlanta’s peak vacancy in First Quarter 2010.