Q1 2012 | NORTHWEST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES
Total SF
100,000
Vacancy Rate
18%
80,000
17%
Square Feet
60,000 40,000
16%
20,000
15%
0
(20,000)
1Q11
2Q11
3Q11
4Q11
1Q12
(40,000)
14%
27,307,866 17.2%
YTD Net Absorption
(59,442)
YTD Deliveries
0
Under Construction
0
13%
(60,000) (80,000)
12% Absorption
Deliveries
Avg. Class A Rate
$21.33
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q1 2012
UPDATE Recent Transactions in the Market
Q2 2012
SALES ACTIVITY VACANCY NET ABSORPTION CONSTRUCTION
—
RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
Riverwood 100
$81,500,000
502,527
$162.18
Highwoods Properties
—
4111 Northside Pkwy.-IBM
$53,600,000
825,000
$64.97
Atlanta Public Schools
—
355 Tower Rd.
$10,450,000
55,000
$190
Wellstar Health System
1090,1130 Northchase Pky.
$7,700,000
165,205
$46.61
Crossgate Partners
Cumberland
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Travelport
300 Galleria
150,000
Class A Renewal
Graphic Packaging
RiverEdge Summit
109,556
Class A Lease
Gentiva
Riverwood 100
60,000
Class A Renewal & Expansion
Silverpop Systems
200 Galleria
22,822
Class A Expansion
•
The Cumberland office market saw modest negative absorption in the first quarter following two consecutive quarters of occupancy gains. The increase in vacancy can be traced to tenant consolidations within the submarket and also a few tenant relocations to neighboring submarkets.
•
Activity in the Cumberland office market is lackluster, yet balanced. The area is seeing a mixed bag of both tenant vacancies, space renewals and new leasing. This submarket, however, has lagged behind competing markets such as Buckhead and Central Perimeter which are winning the majority of the larger leasing requirements.
•
Not much is expected to change for the submarket’s office market over the next few months. Nevertheless, Cumberland remains one of the most viable options to tenants seeking office space.