Q3 2011 | NORTH FULTON
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 18%
300,000
16%
Square Feet
27,772,991
Vacancy Rate
15.4%
17%
200,000 100,000
YTD Net Absorption
338,467
15%
0
(100,000)
Total SF
14% 3Q10
4Q10
1Q11
2Q11
3Q11
12%
(200,000)
11%
(300,000)
10% Absorption
Deliveries
YTD Deliveries
0
Under Construction
0
13%
Avg. Class A Rate
$19.99
Vacancy
Source: CoStar Property, Colliers Research
MARKET INDICATORS Projected
Q3 2011
UPDATE Recent Transactions in the Market
Q4 2011
SALES ACTIVITY VACANCY NET ABSORPTION CONSTRUCTION RENTAL RATE
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—
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PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
6455 E. Johns Crossing
$11,135,223
98,851
$112.65
Rosemont Realty
1200 Bluegrass Lakes Pky.
$9,600,000
93,963
$102.17
OA Development
4100 Old Milton Pky.
$5,775,000
41,358
$139.63
Wilson & Nolan
7310 McGinnis Ferry Rd.
$3,329,000
35,835
$92.91
Hisense USA Corp.
North Fulton
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
GE Consumer Finance
Windward Plaza 300
203,248
Class A Renewal
Ace Insurance
Royal Centre Two
95,255
Class A Lease
Total System
4501 Northpoint Pkwy.
59,501
Class A Lease
W.W. Grainger
Brookside 300
29,246
Class B Renewal
•
After three quarters of leading the Atlanta market in positive space absorption, North Fulton saw its overall occupancy decrease in the third quarter. This is due to AT&T’s consolidation from the submarket to its Midtown campus.
•
Despite the negative quarter, North Fulton’s vacancy rate is still down 1.6% from this time last year. Over the past year, a total of 439,000 square feet of vacant space has been filled.
•
Leasing activity in North Fulton remains steady. Tech companies continue to be the most active prospects in the submarket. Small business growth has also picked up in the area.
•
North Fulton should finish the year on a positive note; marking the second consecutive year with an increase in occupancy levels.