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.