Q2 2010 | NORTH FULTON
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES
Total SF
200,000
22%
Vacancy Rate
100,000
20% 18%
0 2Q09
3Q09
4Q09
1Q10
2Q10
16%
24,136,432 20.2%
YTD Net Absorption
(127,856)
YTD Deliveries
0
Under Construction
0
(100,000) 14% (200,000)
12%
(300,000)
10% Absorption
Deliveries
Avg. Class A Rate
$19.67
Source: CoStar Property
Vacancy
MARKET INDICATORS Q2 2010
NEXT QTR
UPDATE Recent Transactions in the Market SALES ACTIVITY
VACANCY NET ABSORPTION
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CONSTRUCTION
—
—
RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
1720,1725 Windward Conc.
$17,600,000
201,544
$87.33
Allegiance Realty Corp.
1355 Windward Concourse
$11,300,000
102,569
$110.17
TA Realty Associates
11138 State Bridge Rd.
$2,020,000
32,212
$62.71
SJ Collins Enterprises
3935 Lakefield Ct.
$1,620,000
20,400
$79.41
Mayzo Properties LLC
North Fulton
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Saia
11465 Johns Creek Pky.
44,932
Class A Renewal & Expansion
Angelica Corporation
Lake View I-1105 Lakewood
20,309
Class A Renewal
Fiberlight
Royal Centre Four
15,493
Class A Lease
Peachtree Financial Solutions
6465 Johns Creek Pkwy.
14,326
Class A Lease
•
For the fifth consecutive quarter, office absorption in North Fulton was negative. Occupancy dropped by another 65,000 SF in the second quarter. For the year, tenants have given back over 127,000 SF of office space in the submarket.
•
Compared to Atlanta’s other office markets, North Fulton is one of the weakest of the year so far. The submarket has the second highest amount of negative absorption and the third highest vacancy rate increase from this time last year.
•
Leasing activity in North Fulton has been anemic over the past year. There are not a lot of deals currently taking place in the submarket. The number of prospects seeking space here is also weak.
•
North Fulton has the highest amount of sublease space available in Atlanta’s suburban office markets.
MARKET REPORT | Q2 2010 | ATLANTA OFFICE | NORTH FULTON
IN THE NEWS
480 offices in 61 countries on 6 continents
• Children’s
expands up GA 400: The North Fulton/Forsyth County submarket will be the location for a new 28-acre medical campus. Children’s Healthcare of America plans to open a $6 million outpatient medical facility in the northern section of the submarket. The project is currently seeking regulatory approval and Children’s hopes to open the facility in May 2011. A second phase is being planned two to three years down the road which could include an ambulatory surgery center, medical office buildings and diagnostic facilities. The medical campus is being located in Forsyth County due to the population growth experienced over the past decade in the northern suburbs. Regionally, the facility will serve the counties of Forsyth, Cherokee, Gwinnett, Lumpkin, Dawson and Hall. moving from Northridge location: As reported this spring by the Atlanta Business Chronicle, Coca-Cola was considering moving from its existing office space at Northridge Office Park in Central Perimeter to Sanctuary Park in North Fulton. It is now known the company has signed a lease for 130,000 SF of sublease space at Oak View III in Sanctuary Park and plans to relocate by the end of the year. This will likely be the largest deal signed in North Fulton in 2010.
United States: 135 Canada: 39 Latin America: 17 Asia Pacific: 194 EMEA: 95
• Coca-Cola
• Kids
II may move Alpharetta HQ to Buckhead: Kids II, which is currently located in 555 North Point Center, may relocate to 100,000 SF of office space at Terminus 200 in Buckhead. The company is considering the lease, and also whether or not to renew its current space. AT A GLANCE | Prospect Park •
$745 million luxury, mixed-use development on 85 acres in Alpharetta.
•
Project planned to include 156-room boutique hotel with 82 residences, 750,000 SF of retail space, two midrise office buildings totaling 250,000 SF and other amenities including a 75,000 SF multiplex cinema.
•
Project currently in bankruptcy protection with no definitive timetable for completion.
COLLIERS INTERNATIONAL | ATLANTA OFFICE | NORTH FULTON LISTINGS
ROYAL CENTRE 1,723-51,634 SF Lease Lee Evans / Scott O’Halloran
100 WINDWARD FOREST 4,289-44,105 SF Lease Lee Evans / Patrick Braswell
JOHNS CREEK MEDICAL PLAZA 90,000 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
BROOKSIDE 800 36,556 SF Sublease Craig Mendel / Michael Lipton
www.colliers.com/atlanta
•
$2 billion in annual revenue
• Over 2 billion square feet under
management • Over 15,000 professionals
UNITED STATES: Colliers International 1349 West Peachtree Street Suite 1100 Atlanta, Georgia, 30309 TEL +1 404 888 9000 FAX +1 404 870 2845
COLLIERS INTERNATIONAL ATLANTA OFFICE SPECIALISTS: Bob Allen
Bob Mathews
Neal Baker
Craig Mendel
Patrick Braswell
Scott O’Halloran
Lee Evans
Hugh Pafford
Russ Jobson
Jodi Selvey
Nicole Kamen
Fred Sheats
Jeff Kelley
Pete Shelton
Brett Kingman
Andrew Walker
Michael Lipton
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 480 offices throughout more than 61 countries worldwide.
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