Q2 2010 | NORTHWEST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 100,000
50,000
Vacancy Rate
19%
YTD Net Absorption
18% 3Q09
4Q09
1Q10
2Q10
(50,000)
15% Absorption
Deliveries
19.2% (22,557)
YTD Deliveries
0
Under Construction
0
17% 16%
(100,000)
24,318,917
20%
0 2Q09
Total SF
Avg. Class A Rate
$20.56
Source: CoStar Property
Vacancy
MARKET INDICATORS Q2 2010 VACANCY
NEXT QTR
UPDATE Recent Transactions in the Market SALES ACTIVITY
—
PROPERTY ADDRESS
NET ABSORPTION CONSTRUCTION
—
—
RENTAL RATE
SALE PRICE
SIZE SF
PRICE / SF
BUYER
1886 Stallion Pkwy.
$2,882,000
10,840
$265.87
International Capital, LLC
1580 Terrell Mill Rd.
$2,800,000
24,784
$112.98
Reformed Theo. Semin.
3825 Cherokee St.
$1,635,000
10,000
$163.50
Braden & Flanagan, LTD
Olde Ivey Condo 110
$1,425,000
13,000
$109.62
Goddard School
Cumberland
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
GE Energy
Parkwood Point
106,638
Class A Lease
JM Huber
Cumberland Center II
55,716
Class A Lease
WinSonic Digital Media
2251 Lake Park Dr.
33,794
Class B Lease
Principal Financial Services
Riveredge Place
24,561
Class A Renewal
•
Though absorption in second quarter was slightly positive for the Cumberland office market, the vacancy rate continues to remain flat. Around 4.7 million square feet of vacant space is available for lease in the submarket.
•
Physician’s Education moved into almost 100,000 SF of Class B space in the submarket in second quarter. This was the second largest move-in for the Atlanta office market.
•
The average rental rate for office in the Cumberland market is down 2.8% from this time last year. Over the past two and a half years, average rates have dropped 8.7%.
•
Deal activity in the submarket has picked up over the last three months. Positive absorption is expected in third quarter, and leasing activity is anticipated to remain strong for the remainder of the year.