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
—
—
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.
MARKET REPORT | Q1 2011 | ATLANTA OFFICE | NORTHWEST ATLANTA
SKYLINE REVIEW Space Available Direct Sublet 35
Source: CoStar Property
30
Floors
25 20 15 10 5
BUILDING RBA % LEASED LARGEST SPACE AVAIL. RENTAL RATE PER SF (Gross)
Riverwood 100
Overlook III
200 Galleria
400 Galleria
Cumberland Center II
502,519 SF
438,709 SF
438,273 SF
440,000 SF
413,247 SF
85.1%
68.3%
72.9%
78.6%
94.8%
24,931 SF
30,951 SF
23,094 SF
24,586 SF
72,232 SF
$25.00
$23.50-$26.00
$16.00-$21.00
$24.50
$22.50
1
2
3
4
5
One Paces West
Two Paces West
Platinum Tower
3200 Wildwood Plaza
274,948 SF
371,523 SF
312,591 SF
706,307 SF
76.9%
81.5%
89.5%
77.3%
34,253 SF
20,734 SF
12,487 SF
69,425 SF
$20.50-$21.00
$20.50-$21.00
$22.50
$19.00-$23.50
6
7
8
9
35 30
Floors
25 20 15 10 5
BUILDING RBA % LEASED LARGEST SPACE AVAIL. RENTAL RATE PER SF (Gross)
P. 2
| COLLIERS INTERNATIONAL
MARKET REPORT | Q1 2011 | ATLANTA OFFICE | NORTHWEST ATLANTA
9 5
4
8
3
4 3 3
2 1 5
1 2
4 1 2
6 7
6
PLANNED CONSTRUCTION
AERIAL LEGEND
1 Buildings by Numbers (see opposite page) New Construction
2
RIVERWOOD PROJECT
3
555 GALLERIA
POINTS OF INTEREST Chattahoochee Recreation Center
1 Cumberland Mall
4
2 Galleria Mall
5 Dobbins Air Base
Cobb Energy 3 Arts Centre
6 Vinings Area
2555 CUMBERLAND PKWY. 206,000 SF Class A office Construction contingent upon leasing Developer: Shailendra Group
$300M project 530,000 SF Class A office 90,000 SF retail 400 residential units 200 room hotel Developer: Seven Oaks Co.
250,000-300,000 SF Class A Build-To-Suit Construction contigent upon leasing Developer: Childress Klein
COLLIERS INTERNATIONAL |
P. 3
MARKET REPORT | Q1 2011 | ATLANTA OFFICE | NORTHWEST ATLANTA
IN THE NEWS
480 offices in 61 countries on 6 continents
• Travelport
makes Atlanta its HQ destination: Travelport will be moving it headquarters in New York to Atlanta, expanding on its current office footprint here. The move is part of a cost-savings effort by the company which decided to take advantage of Atlanta’s low taxes, educated workforce and more affordable commercial real estate. Travelport plans to relocate only a handful of executive jobs, but these will be the decision makers of the company which bodes well for any future expansion in Atlanta. The relocation is expected to occur in the second quarter of 2011. Management expanding in Atlanta: Waste Management has decided on a lease for 20,000 square feet at One Parkway Center. The company chose the Cumberland area after considering several other locations in the Carolinas and Georgia. The facility will house the company’s regional office and call center, operating the customer service and operations business for the three-state South Atlantic region. Waste Management will employ 64 employees at the location.
United States: 135 Canada: 39 Latin America: 17 Asia Pacific: 194 EMEA: 95
• Waste
• Cobb
County tower for sale: GE Asset Management has put Riverwood 100 up for sale, making it one of the few trophy assets currently available in the market. The building is currently 85% leased with Cohen, Pollock, Merlin & Small and Gentiva Health Services as the main tenants. No sales price is listed on the building, but it could fetch between $250 to $300 per square foot based on current comparables data.
•
$2 billion in annual revenue
• Over 2 billion square feet under
management • Over 15,000 professionals
UNITED STATES:
Square Feet
KENNESAW | MARIETTA | CHEROKEE CO. Office Market Stats
100,000
18%
80,000
17%
60,000
16%
40,000
15%
20,000
14%
0
13%
(20,000)
1Q10
2Q10
3Q10
4Q10
1Q11
12%
(40,000)
11%
(60,000)
10% Absorption
Deliveries
Total SF
8,426,955
Vacancy Rate
16%
YTD Net Absorption
54,282
YTD Deliveries
0
Under Construction
16,650
Avg. RentalRate
$16.20
Vacancy
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
Source: CoStar Property, Colliers Research
COLLIERS INTERNATIONAL | ATLANTA OFFICE | NORTHWEST ATLANTA LISTINGS
COLLIERS INTERNATIONAL ATLANTA OFFICE SPECIALISTS: Bob Allen
Bob Mathews
Lee Evans
Craig Mendel
Deming Fish
Scott O’Halloran
Huston Green
Hugh Pafford
Tim Hoffman
Jodi Selvey
Russ Jobson
Fred Sheats
Nicole Kamen
Pete Shelton
Jeff Kelley
Hayes Swann
Brett Kingman
Andrew Walker
Drew Levine
Bob Ward
Michael Lipton
JONQUIL VILLAGE
2700 CUMBERLAND
GALLERIA 600
10,376-20,752 SF Lease Andrew Walker
34,812 SF Sublease Andrew Walker / Fred Sheats / Bob Mathews
14,200 SF Sublease Pete Shelton
TWO BARRETT LAKES
ONE RIVERSIDE
9,317 SF Sublease Jeff Kelley / Pete Shelton / Bob Ward
15,624 SF Sublease Brett Kingman / Russ Jobson
www.colliers.com/atlanta
1950 NORTH PARK PL. BLDG. 600 5,607 SF Lease/Sale Brett Kingman / Russ Jobson
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.
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