Q1 2012 | NORTH FULTON
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS
Total SF
300,000
16%
Vacancy Rate
200,000
15%
Square Feet
NEW SUPPLY, ABSORPTION AND VACANCY RATES
100,000
14%
0
13% 1Q11
2Q11
3Q11
4Q11
12%
(200,000)
11%
(300,000)
10% Deliveries
14.7%
YTD Net Absorption
177,645
YTD Deliveries
0
Under Construction
0
1Q12
(100,000)
Absorption
27,794,695
Avg. Class A Rate
$20.08
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q1 2012
UPDATE Recent Transactions in the Market
Q2 2012
SALES ACTIVITY VACANCY NET ABSORPTION CONSTRUCTION
—
—
RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
Parkside Terrace
$25,200,000
252,960
$99.62
Granite Properties
3300 Old Milton Pkwy.
$14,377,100
65,000
$221.19
Health Care REIT
Lakeview 400 - 100 & 200
$10,400,000
135,161
$76.95
OA Development
2775 Northwoods Pky.
$5,300,000
32,192
$164.64
Carter Validus REIT
North Fulton
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Media Brokers International
200 Milton Park
26,882
Class A Renewal
GlobalCare Inc.
6875 Shiloh Rd.
26,040
Class C Renewal
Alliant Insurance
1120 Sanctuary Parkway
25,155
Class A Lease
Volkswagen-Audi
Northwinds II
16,500
Class A Lease
•
North Fulton ended the first quarter with the third highest amount of space absorbed in Atlanta. The increase in occupied space can mostly be attributed to a handful of companies moving into full floors, and also minimal move-out activity by tenants in the submarket.
•
With positive activity continuing in the submarket and demand remaining consistent, talk of new construction at Sanctuary Park has begun. Most likely the building, Stonebridge IV, would be constructed under a strong pre-leasing commitment.
•
The average rental rate for office space in North Fulton is much closer to trending upwards than other areas in the market. The submarket boasts the lowest office vacancy rate of Atlanta’s major office nodes.