Q1 2011 | NORTH FULTON
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 300,000
18%
16%
Square Feet
27,461,696
Vacancy Rate
16%
17%
200,000 100,000
YTD Net Absorption
253,294
15%
0 (100,000)
Total SF
14% 1Q10
2Q10
3Q10
4Q10
1Q11
12% (200,000)
YTD Deliveries
0
Under Construction
0
13%
11%
(300,000)
10% Absorption
Deliveries
Avg. Class A Rate
$19.98
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q1 2011
UPDATE Recent Transactions in the Market
Q2 2011
SALES ACTIVITY VACANCY NET ABSORPTION CONSTRUCTION
—
—
RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
5955 State Bridge Rd.
$11,300,000
78,190
$144.52
Macy’s Corporate Serv.
Roswell Bus. Center
$6,500,000
156,298
$41.59
Johnson-Hailey Prtnrs.
11450 Technology Circle
$4,300,000
144,647
$29.73
Southeast Office Prtnrs.
11138 State Bridge Rd.
$2,588,000
30,070
$89.07
Columbia Insurance Gr.
North Fulton
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Cellnet Technology
100 Milton Park
79,879
Class A Renewal
Siemens
4800 North Point Pkwy.
48,043
Class A Lease
North Point Comm. Church
One Point Royal
42,000
Class B Lease
ThyssenKrupp IT
Northwinds I
25,925
Class A Lease
•
For the second consecutive quarter, North Fulton’s office occupancy increased by greater than 200,000 SF. A significant portion of this quarter’s increase can be attributed to Coca-Cola moving into 148,229 SF at Sanctuary Park. This was a move from flex property in Central Perimeter, resulting in pure absorption for North Fulton.
•
Leasing activity in the submarket continues to remain solid. Tech companies are currently the most active in North Fulton. Since the beginning of the year, it is reported tech companies have committed more than $125 million in expansion or relocation plans to the area.
•
Although sales activity is considerably lacking in the submarket, developers are beginning to consider investing in possible build-to-suits for a number of large deals currently prospecting the area.
MARKET REPORT | Q1 2011 | ATLANTA OFFICE | NORTH FULTON
IN THE NEWS
480 offices in 61 countries on 6 continents
• Alpharetta
a hotbed for high-tech companies: The North Fulton submarket has been very active as of late with news on tech companies either expanding or moving to the area. Hewlett-Packard, ThyssenKrupp and Macy’s have all announced plans to expand their technology operations in North Fulton over the coming years, adding over 450 jobs. As the AJC reports, there are many factors driving these companies to the submarket including miles of underground fiber-optic cable and a world-class broadband network. What distinguishes North Fulton from other cities where technology is prominent is lifestyle. Companies choose to move to the area because of good schools, good roads, access to university systems and overall quality of life. In addition, the area is relatively free of natural disasters. wins ThyssenKrupp: Germany-based ThyssenKrupp has chosen Northwinds One to house its IT headquarters. As reported earlier this year, the company announced plans to consolidate IT operations from across the country and open a single hub in Alpharetta to handle of all its IT business in the United States, Canada and Mexico. The company recently chose Northwinds as this location, leasing 25,925 square feet. Occupancy is expected in late spring.
United States: 135 Canada: 39 Latin America: 17 Asia Pacific: 194 EMEA: 95
• Northwinds
• Alpharetta
a target for new office building: JP Morgan Chase is reportedly interested in beginning construction of Stonebridge IV in Sanctuary Park, but only if certain preleasing requirements are met. The owner hopes to land one of the current requirements scouting the area as its anchor tenant. AT A GLANCE | Macy’s Buys 5955 State Bridge Rd.
•
78,190 SF Class B office building sold to Macy’s for expansion of the company’s technology campus in Johns Creek.
•
Macy’s plans to add around 150 jobs from the expansion. These jobs will be e-commerce related and added over the next two years.
•
•
Growth in the company’s online sales prompted the purchase of 5995 State Bridge Rd. Macy’s paid $11.3 million, or $145/sf, for the building.
COLLIERS INTERNATIONAL | ATLANTA OFFICE | NORTH FULTON LISTINGS
•
$2 billion in annual revenue
• Over 2 billion square feet under
management • Over 15,000 professionals
UNITED STATES: Colliers International Two Midtown Plaza | Suite 1100 1349 West Peachtree Street, NE Atlanta, Georgia, 30309 TEL +1 404 888 9000 FAX +1 404 870 2845
COLLIERS INTERNATIONAL ATLANTA OFFICE SPECIALISTS: Bob Allen
Bob Mathews
Lee Evans
Craig Mendel
Deming Fish
Scott O’Halloran
Huston Green
Hugh Pafford
Tim Hoffman
Jodi Selvey
Russ Jobson
Fred Sheats
Nicole Kamen
Pete Shelton
Jeff Kelley
Hayes Swann
Brett Kingman
Andrew Walker
Drew Levine
Bob Ward
Michael Lipton
ROYAL CENTRE 1,723-51,634 SF Lease Lee Evans / Scott O’Halloran
100 WINDWARD FOREST 21,211 SF Lease Lee Evans / Scott O’Halloran
LAKE @ NORTHPOINT 1,501-15,623 SF Lease Lee Evans / Scott O’Halloran
BROOKSIDE TWO 7,728 SF Sublease Brett Kingman / Russ Jobson
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This market report is a research document of Colliers International. Information herein has been deemed reliable and no representation is made as to the accuracy thereof. Colliers International-Atlanta, Inc., and certain of its subsidiaries, is an independently owned and operated business and a member firm of Colliers International Property Consultants, an affiliation of independent companies with over 480 offices throughout more than 61 countries worldwide.
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