Q1 2011 | NORTHWEST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 20,000
18%
10,000
17%
Square Feet
0 (10,000)
1Q10
2Q10
3Q10
4Q10
1Q11
(20,000)
16% 15%
(30,000)
(40,000)
14%
(50,000)
Total SF
27,449,064
Vacancy Rate
17.3%
YTD Net Absorption
(5,482)
YTD Deliveries
0
Under Construction
0
13%
(60,000) (70,000)
12% Absorption
Deliveries
Avg. Class A Rate
$20.47
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
VACANCY
Q1 2011
Q2 2011
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—
UPDATE Recent Transactions in the Market SALES ACTIVITY
NET ABSORPTION CONSTRUCTION
—
—
RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
6120 Powers Ferry Rd.
$20,450,000
137,818
$148.38
Piedmont Office Realty
3333 Riverwood Pkwy. (‘10)
$15,300,000
110,000
$139.09
Colony Realty Partners
2400 Lake Park Dr.
$7,700,000
103,962
$74.07
OA Development
Corporate Forum
$7,200,000
183,162
$39.31
Ackerman & Co.
Cumberland
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Kemira
1000 Parkwood
45,950
Class A Lease
GDS Associates
One Parkway Ctr.
30,000
Class A Renewal
University of Phoenix
One Parkway Ctr.
23,424
Class A Renewal
Waste Management
One Parkway Ctr.
20,000
Class A Lease
•
Office absorption in the Cumberland office market has shown little to no movement over the past year. The market is practically balanced between tenant move-outs and tenant move-ins. Although leasing has begun to pick up a bit in the past quarter, the area continues to wait for stronger, more sustained activity which will fill existing vacancies.
•
Cumberland’s average rental rate for office space decreased for the third consecutive quarter. The trend for rental rates in this market has been downward since the first quarter of 2008.
•
While there have been a few recent wins for this submarket in the past quarter, examples being Travelport and Waste Management, the Cumberland area is still seeking that catalyst to show more momentum towards seeing absorption levels increase.