Q2 2012 | NORTH FULTON
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 150,000
17%
100,000
16%
Square Feet
50,000
15%
0 (50,000)
2Q11
3Q11
4Q11
1Q12
2Q12
(100,000)
14% 13%
(150,000)
12%
(200,000) (250,000)
11%
(300,000)
10% Absorption
Deliveries
Total SF
27,763,693
Vacancy Rate
16%
YTD Net Absorption
(17,481)
YTD Deliveries
0
Under Construction
0
Avg. Class A Rate
Vacancy
$20.17
Source: CoStar Property, Colliers Research
MARKET INDICATORS Projected
Q2 2012
UPDATE Recent Transactions in the Market
Q3 2012
SALES ACTIVITY VACANCY PROPERTY ADDRESS
NET ABSORPTION CONSTRUCTION
—
—
RENTAL RATE
SALE PRICE
SIZE SF
PRICE / SF
BUYER
Parkside Terrace
$25,200,000
252,960
$99.62
Granite Properties
1360 Upper Hembree Rd.
$8,600,000
28,205
$304.91
Senior Housing Prop. Tr.
4800 North Point Pky.
$5,900,000
75,304
$78.35
Glenfield Capital
Roswell Summit
$4,851,000
126,371
$38.39
J4 Asset Management
North Fulton
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Red Prairie
3905 Brookside Pkwy.
80,314
Class B Renewal
Select Mgmt. Resources
Preston Ridge IV
40,347
Class A Renewal
Amdocs
Northwind VI
35,000
Class A Renewal & Expansion
Ingenico
3025 Windward Pkwy.
33,000
Class A Lease
•
North Fulton saw more space given back than filled during the second quarter, resulting in negative absorption of (137,121) SF. This also brought the year-to-date absorption total into negative territory
•
For the most part, the submarket experienced a quiet quarter. Verizon’s move-out at One Deerfield Centre was the sole reason for the loss of occupancy this quarter.
•
Despite the negative quarter, leasing activity remained strong. A number of new deals and expansions have taken place in the submarket which will lead to occupancy gains later in the year.
•
North Fulton remains the most likely area to see the next new office building in Atlanta. JPMorgan Chase & Co. has plans for additional office buildings at Sanctuary Park and North American Properties is looking at an office component to its Avalon project. Preleasing will be key to any new construction.