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
—
—
—
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.
MARKET REPORT | Q3 2011 | ATLANTA OFFICE | NORTH FULTON
IN THE NEWS • State
512 offices in 61 countries on 6 continents
• Prospect
United States: 125 Canada: 38 Latin America: 18 Asia Pacific: 214 EMEA: 117
Farm bringing up to 400 new jobs: State Farm, the nation’s largest property and casualty insurance company, is currently in the process of centralizing its regional auto insurance and fire underwriting operations to its Johns Creek campus. The company is consolidating its offices in other southeastern states and moving approximately 400 white-collar jobs to North Fulton. This strategy helps State Farm lower its operating costs in the challenging economy.
Park goes for $22.8 million: The former luxury retail and mixed-used development known as Prospect Park has a new owner. Wells Fargo sold the 101-acre property to North American Properties for $22.8 million ($225,742 an acre). The property was previously owned by developer Stan Thomas. The bank took control of the land when loan obligations were not met; a common theme among large developments under construction prior to the economic downturn. North American Properties plans to scale down the next version of the project from 850,000 SF of retail to around 400,000 SF. The development will still include some elements of office and for-sale residential units. The new owner hopes to have the first phase completed by October 2013, prior to the holiday season. UPDATE: AVALON IN ALPHARETTA - North American Properties has changed the name of Prospect Park to Avalon. The developer hopes to associate the new name with affluent baby boomers which are the major demographic target in the Alpharetta area; and also disassociate itself from the old name.
AT A GLANCE | Prospect Park Goes For $22.8 Million
•
$1.5 billion in annual revenue
• Over 2.2 billion square feet under
management • Over 13,000 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
•
Former luxury retail and mixed-use development proposed by developer Stan Thomas.
•
Foreclosed on by Wells Fargo as a result of the economic downturn.
•
North American Properties will scale down development from 850,000 SF of retail to about 400,000 SF.
COLLIERS INTERNATIONAL ATLANTA OFFICE SPECIALISTS: Bob Allen
Bob Mathews
•
Will include a mix of office and forsale residential in addition to retail.
Lee Evans
Craig Mendel
Deming Fish
Scott O’Halloran
First phase completion planned for October 2013.
Huston Green
Hugh Pafford
Tim Hoffman
Jodi Selvey
Russ Jobson
Fred Sheats
Nicole Kamen
Pete Shelton
•
COLLIERS INTERNATIONAL | ATLANTA OFFICE | NORTH FULTON LISTINGS
Jeff Kelley
Hayes Swann
Brett Kingman
Andrew Walker
Drew Levine
Bob Ward
Michael Lipton
ROYAL CENTRE 1,723-51,634 SF Lease Lee Evans / Scott O’Halloran
100 WINDWARD FOREST 13,643 SF Lease Lee Evans / Scott O’Halloran
LAKE @ NORTHPOINT 1,501-15,623 SF Lease Lee Evans / Scott O’Halloran
www.colliers.com/atlanta
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 512 offices throughout more than 61 countries worldwide.
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