1Q 2011 | Atlanta North Fulton Office | Market Report

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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

www.colliers.com/atlanta

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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