Q4 2010 | NORTH FULTON
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 200,000
22%
150,000
20%
Square Feet
100,000 50,000
18%
0 (50,000)
16% 4Q09
1Q10
2Q10
3Q10
4Q10
(100,000)
14%
(150,000)
Total SF
24,008,599
Vacancy Rate
19.6%
YTD Net Absorption
9,750
YTD Deliveries
0
Under Construction
0
12%
(200,000) (250,000)
10% Absorption
Deliveries
Avg. Class A Rate
$19.42 Source: CoStar Property
Vacancy
MARKET INDICATORS Q4 2010
NEXT QTR
UPDATE Recent Transactions in the Market SALES ACTIVITY
VACANCY
CONSTRUCTION RENTAL RATE
PROPERTY ADDRESS
—
NET ABSORPTION
—
—
—
SALE PRICE
SIZE SF
PRICE / SF
BUYER
5955 State Bridge Rd.
$11,300,000
78,190
$144.52
Macy’s Corporate Serv.
11450 Technology Circle
$4,300,000
144,647
$29.73
Southeast Office Prtnrs.
2580 Westside Pkwy.
$4,225,000
64,904
$65.10
Cytometry Specialists
3875 Mansell Rd.
$2,295,000
22,600
$101.55
Honey Baked Ham
North Fulton
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Cotton States Mutual
One Deerfield Centre
66,575
Class A Lease
Ariba
Northwinds V
39,195
Class A Renewal & Expansion
Vesta
Brookside 800
36,556
Class B Sublease
Amdocs
Northwinds VI
26,233
Class A Renewal & Expansion
•
After six consecutive quarters of negative absorption, North Fulton saw occupancy increase in the fourth quarter. Positive absorption totaled 167,233 SF thanks to move-ins by Delta Dental, Tensar Corp. and Rainmaker Group. Activity in the quarter helped push absorption for the year slightly positive.
•
North Fulton is beginning to see more steady leasing activity. The third and fourth quarters were the strongest for the submarket. This activity is expected to continue.
•
Recent announcements by ThyssenKrupp, Macy’s and Hewlett-Packard are a big boon to the submarket. Each of these companies plan to expand their technology operations in North Fulton over the coming years adding over 450 jobs.
•
North Fulton will likely be one of Atlanta’s strongest office markets in 2011.
MARKET REPORT | Q4 2010 | ATLANTA OFFICE | NORTH FULTON
IN THE NEWS
480 offices in 61 countries on 6 continents
• ThyssenKrupp
to bring IT headquarters, jobs to Alpharetta: It was recently announced Germanybased ThyssenKrupp will move its IT headquarters to the North Fulton submarket. Although no timetable has been announced, the company plans to consolidate IT operations from across the country and open a single hub in Alpharetta to handle all of its IT business in the United States, Canada and Mexico. The company chose its location due to the state’s technology and communications infrastructure, proximity to Hartsfield-Jackson International Airport and the pro-business environment. expanding, adding jobs in Alpharetta: Hewlett-Packard plans to expand its presence in the North Fulton submarket. The company is looking to add more than 200 jobs next year which would include web developers, data architects and analysts. Currently, the company owns a 60-acre campus on Windward Parkway where it employs 850 workers. The expansion will be centered around two sectorsinternet security and logistics. HP chose Atlanta for its expansion due to its low cost of doing business and low cost of living.
United States: 135 Canada: 39 Latin America: 17 Asia Pacific: 194 EMEA: 95
• HP
• New
medical offices headed to Alpharetta: As a sign some construction lending has returned, Bank of America provided financing to a group of doctors who bought 6-acres of land in North Fulton to build a medical office building between 60,000-100,000 SF. The land price was $1.8 million, and $9 million was borrowed for a construction loan. Northpoint Medical Group is the buyer. Duke Realty is the seller. AT A GLANCE | Macy’s Buys 5955 State Bridge Rd.
•
78,190 SF Class B office building sold to Macy’s for expansion of the company’s technology campus in Johns Creek.
•
Macy’s plans to add around 150 jobs from the expansion. These jobs will be e-commerce related and added over the next two years.
•
•
Growth in the company’s online sales prompted the purchase of 5995 State Bridge Rd. Macy’s paid $11.3 million, or $145/sf, for the building.
COLLIERS INTERNATIONAL | ATLANTA OFFICE | NORTH FULTON LISTINGS
•
$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
Craig Mendel
Lee Evans
Scott O’Halloran
Deming Fish
Hugh Pafford
Huston Green
Jodi Selvey
Russ Jobson
Fred Sheats
Nicole Kamen
Pete Shelton
Jeff Kelley
Hayes Swann
Brett Kingman
Andrew Walker
Michael Lipton
Bob Ward
Bob Mathews
ROYAL CENTRE 1,723-51,634 SF Lease Lee Evans / Scott O’Halloran
100 WINDWARD FOREST 21,211 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
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 480 offices throughout more than 61 countries worldwide.
Accelerating success.