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
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—
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.
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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.
MARKET REPORT | Q1 2012 | ATLANTA OFFICE | NORTH FULTON
IN THE NEWS • Metro
522 offices in 62 countries on 6 continents
• Alcon
United States: 147 Canada: 37 Latin America: 19 Asia Pacific: 201 EMEA: 118
area may see first office building in years: Sanctuary Park could be the location for Atlanta’s first new office building in almost four years. JP Morgan Chase is currently marketing a 175,000 square foot building at the park with hopes of landing one of several companies looking at North Fulton for new office space. Construction of the new building will be heavily dependant on a large anchor tenant signing for at least 50% of the space. The project would be known as Stonebridge IV. eyes $200M, 300-job expansion: Alcon is looking to possibly expand its Johns Creek campus operations. It was recently reported the eye-care products maker could invest up to $200 million at its 850,000 SF manufacturing campus in North Fulton, adding 300 jobs as a result. Though the facility is centered around manufacturing, the expansion would add to North Fulton’s identity as a health-care hub and could continue luring other related companies to the area.
• Avalon
lands its first tenant: The former luxury retail and mixed-used development known as Prospect Park has landed its first tenant under its new owner. North American Properties recently signed Whole Foods Markets to a 45,000 SF space along Old Milton Parkway. The tenant was previously committed to the project envisioned by Stan Thomas. North American Properties purchased the 100-acre property for $22.8 million following a foreclosure by Wells Fargo. Now with scaled back plans, Avalon is starting to ramp up its pre-leasing efforts and going after previously committed retailers. The new owner is pushing for a first phase completion by October 2013, including the grocery store. AT A GLANCE | Prospect Park sells; renamed Avalon •
Foreclosed luxury retail and mixeduse development on 100-acres.
•
North American Properties purchased property for $22.8 million with plans to downsize the development from 850,000 SF of retail to about 550,000 SF.
•
•
$1.8 billion in annual revenue
• Over 2.5 billion square feet under
management • Over 12,000 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
Will include a mix of office and forsale residential in addition to retail.
Jill Bomar
Craig Mendel
Lee Evans
Scott O’Halloran
First phase completion planned for October 2013.
Deming Fish
Hugh Pafford
Huston Green
Jodi Selvey
Tim Huffman
Fred Sheats
Russ Jobson
Pete Shelton
COLLIERS INTERNATIONAL | ATLANTA OFFICE | NORTH FULTON LISTINGS
ROYAL CENTRE 1,777-52,875 SF Lease Lee Evans / Scott O’Halloran / Deming Fish
200 WINDWARD FOREST 3,710 SF Lease Lee Evans / Scott O’Halloran / Deming Fish
LAKE @ NORTHPOINT 2,000-15,623 SF Lease Lee Evans / Scott O’Halloran / Deming Fish
KINGS LANDING OFFICE CTR. 1,775-22,576 SF Lease Will Tyler / Deming Fish
www.colliers.com/atlanta
•
Jeff Kelley
Hayes Swann
Drew Lavine
Will Tyler
Michael Lipton
Andrew Walker
Nicole Littleton
Bob Ward
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 520 offices throughout 62 countries worldwide.
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