Q4 2010 | NORTHEAST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 1,000,000
16%
14%
Square Feet
Vacancy Rate
14.5%
15%
500,000 0 (500,000)
169,777,664
Total SF
YTD Net Absorption
(693,467)
13% 4Q09
1Q10
2Q10
3Q10
4Q10
12%
0
YTD Deliveries
11%
(1,000,000)
10% (1,500,000)
Under Construction
482,000
Avg. Warehouse Rate
$3.36 NNN
9%
(2,000,000)
8% Absorption
Deliveries
Source: CoStar Property
Vacancy
MARKET INDICATORS Q4 2010
NEXT QTR
UPDATE Recent Transactions in the Market SALES ACTIVITY
VACANCY NET ABSORPTION CONSTRUCTION
—
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
1050 Northbrook Pkwy.
$5,075,000
108,632
$46.72
Block Real Estate Serv.
100 Petty Rd.
$3,945,258
112,860
$34.96
Meritex Atlanta Ind.
Northeast
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Kichler Lighting
Braselton 85 Distr. Ctr.
247,700
Distribution Lease
Bagcraft
6448 Best Friend Rd.
225,984
Warehouse Lease
National Gypsum Co.
Peachtree Corners DC 300
142,800
Warehouse Renewal
Exel
2500 West Park
108,000
Warehouse Renewal
•
Fourth quarter absorption in Northeast Atlanta was second highest for the entire Atlanta industrial market. The occupancy gain was mostly a result of numerous move-ins from companies between 50,000 to 100,000 SF. Also, fourth quarter move-outs were limited in the submarket.
•
Vacant space remains highest in the Northeast Atlanta industrial submarket. Over the past year, the vacancy rate has risen 0.5%, amounting to almost 850,000 SF of vacant space added.
•
After a modest year of activity, leasing in Northeast Atlanta is beginning to show signs of strengthening.
•
Aldi’s build-to-suit facility of 482,000 SF is scheduled to deliver in the first quarter of 2011. Groundbreaking for FedEx Ground’s new distribution center is scheduled to begin soon. This will be the only new construction occurring in the submarket for some time.