Q4 2011 | NORTHEAST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS
Square Feet
NEW SUPPLY, ABSORPTION AND VACANCY RATES 900,000
16%
800,000
15%
700,000
14%
600,000
169,219,678
Total SF Vacancy Rate
14.3%
YTD Net Absorption
2,000,615
13%
500,000
12%
400,000
YTD Deliveries
482,223
Under Construction
215,000
11%
300,000 200,000
10%
100,000
9% 8%
0 4Q10
1Q11 Absorption
2Q11
3Q11
Deliveries
Avg. Warehouse Rate
4Q11
$3.50 NNN
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q4 2011
UPDATE Recent Transactions in the Market
Q1 2012
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.
—
860 John B. Brooks Rd.
$20,850,000
810,000
$25.74
Bed Bath & Beyond
—
125 Horizon Dr.
$19,822,244
600,674
$33
KTR Capital Partners
2670 Breckinridge Blvd.
$6,327,060
124,060
$51
Cabot Industrial Prop.
Northeast
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Mitsubishi Electric
1340 Satellite Blvd.
559,407
Build-To-Suit
RNC Industries
Hamilton Mill Bus. Ctr. I
192,780
Distribution Lease
Varec Inc.
5834 Peactree Corners E
78,930
Flex Renewal
PartnerTech
2420 Tech Center Pkwy. E
57,621
Warehouse/Distribution Lease
•
Northeast Atlanta finished the year with its fifth consecutive quarter of positive absorption. For the year as a whole, the submarket saw its total occupancy increase by 2 million square feet. This was second highest in the Atlanta industrial market.
•
The overall vacancy rate for Northeast Atlanta has dropped 0.8% over the course of a year. Industrial activity has most definitely returned to the submarket. A consistent downward vacancy trend is proof of this.
•
Construction activity in the submarket is currently limited to FedEx’s build-to-suit; however, this will change in the upcoming quarter as Mitsubishi’s 559,000 SF build-to-suit begins and Pattillo Construction starts construction of a 77,000 SF spec industrial building in Gainesville.