Q4 2011 | NORTH FULTON
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES
Square Feet
300,000 250,000 200,000 150,000 100,000 50,000 0 (50,000) (100,000) (150,000) (200,000)
17%
Total SF
27,671,486
Vacancy Rate
14.8%
16% 15% 14% 13% 4Q10
1Q11
2Q11
3Q11
4Q11
12%
YTD Net Absorption
359,319
YTD Deliveries
0
Under Construction
0
11% 10% Absorption
Deliveries
Avg. Class A Rate
Vacancy
$20.00
Source: CoStar Property, Colliers Research
MARKET INDICATORS Projected
Q4 2011
UPDATE Recent Transactions in the Market
Q1 2012
SALES ACTIVITY VACANCY NET ABSORPTION CONSTRUCTION RENTAL RATE
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PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
Parkside Terrace
$25,200,000
252,960
$99.62
Granite Properties
11975 Morris Rd.
$16,864,000
62,904
$268.09
Health Care REIT
3300 Old Milton Pkwy.
$14,377,100
65,000
$221.19
Health Care REIT
Lakeview 400 - 100 & 200
$10,400,000
135,161
$76.95
OA Development
North Fulton
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Verint Systems
800 North Point Pkwy.
132,676
Class A Lease
Alcatel-Lucent
900 North Point Pkwy.
129,644
Class A Renewal & Expansion
Lonza
1200 Bluegrass Lakes Pky.
69,000
Class B Renewal
Cox Communications
3600 Mansell Rd.
44,172
Class A Renewal
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Thanks to a strong first half of 2011, North Fulton finished the year with the second highest amount of office space absorbed in the Atlanta market. Occupancy for the year increased by 359,319 SF. This resulted in the overall vacancy rate dropping 1.3% from the end of 2010.
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North Fulton leasing activity continues to center around technology companies. Growth in this industry over the past year was the main reason for the submarket leading all of Atlanta in office leasing. This activity remains strong as well, with Verint Systems and Veamm Software recently signing new leases to expand their North Fulton office spaces.
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Despite a few bumps along the way, the submarket is expected to see positive activity and a downwards trending vacancy rate continue in 2012.
MARKET REPORT | Q4 2011 | ATLANTA OFFICE | NORTH FULTON
IN THE NEWS • Verint
512 offices in 61 countries on 6 continents
• State
United States: 125 Canada: 38 Latin America: 18 Asia Pacific: 214 EMEA: 117
Systems relocating to 900 North Point: Verint Systems has signed a lease to expand into 132,000 SF at 900 North Point Parkway. The software developer will relocate from its existing office at Mansell Overlook where it currently leases 96,500 SF. The company recently acquired Global Management, an Atlanta-based workforce management software company, which resulted in the need for more space. Verint plans to occupy its new space by the end of December 2012. 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.
• Prospect
Park goes for $22.8 million: The former luxury retail and mixed-used development known as Prospect Park has a new owner and a new name. Wells Fargo sold the 101-acre property to North American Properties for $22.8 million ($225,742 an acre) following foreclosure on the property by developer Stan Thomas. North American Properties plans to rename the project “Avalon in Alpharetta” and 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. AT A GLANCE | Prospect Park Goes For $22.8 Million
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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.
•
•
LAKE @ NORTHPOINT 2,000-15,623 SF Lease Lee Evans / Scott O’Halloran
www.colliers.com/atlanta
$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
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 Huffman
Jodi Selvey
Russ Jobson
Fred Sheats
COLLIERS INTERNATIONAL | ATLANTA OFFICE | NORTH FULTON LISTINGS
ROYAL CENTRE 3,667-52,875 SF Lease Lee Evans / Scott O’Halloran
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100 WINDWARD FOREST 13,643 SF Lease Lee Evans / Scott O’Halloran
600 NORTHWINDS 11,656 SF Lease Jodi Selvey
Jeff Kelley
Pete Shelton
Drew Lavine
Hayes Swann
Michael Lipton
Andrew Walker
Nicole Littleton
Bob Ward
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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