Q2 2011 | NORTHWEST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS
Square Feet
NEW SUPPLY, ABSORPTION AND VACANCY RATES 60,000
18%
40,000
17%
20,000
16%
0 (20,000)
2Q10
3Q10
4Q10
1Q11
2Q11
15% 14%
(40,000) (60,000)
13%
(80,000)
12% Absorption
Deliveries
Total SF
27,425,666
Vacancy Rate
16.9%
YTD Net Absorption
52,411
YTD Deliveries
0
Under Construction
0
Avg. Class A Rate
$20.97
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q2 2011
UPDATE Recent Transactions in the Market
Q3 2011
SALES ACTIVITY VACANCY PROPERTY ADDRESS
NET ABSORPTION CONSTRUCTION
—
RENTAL RATE
SALE PRICE
SIZE SF
PRICE / SF
BUYER
4111 Northside Pkwy.-IBM
$53,600,000
825,000
$64.97
Atlanta Public Schools
—
Dupree @ Powers Ferry
$20,450,000
137,818
$148.38
Piedmont Office Realty
—
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
Wells Fargo
Overlook III
38,197
Class A Renewal & Expansion
MasTec
One Riverside
25,969
Class A Sublease
Thomson Reuters
Cumberland Center II
23,741
Class A Renewal
Sertec
5665 New Northside
23,277
Class A Lease
•
The Cumberland office market absorbed almost 44,000 SF of office space in the second quarter of 2011. The largest move-in over the three month period was JM Huber which took occupancy of 55,716 SF at Cumberland Center II. This was the most positive quarter of activity for the submarket since the fourth quarter of 2009.
•
Cumberland’s office vacancy rate decreased slightly thanks to the positive quarter; however, the rate has shown little to no movement over the past three years. This is due to anemic market conditions and the slow recovery from the recession.
•
The submarket is expected to see activity continue to fluctuate quarter-to-quarter, and likely finish 2011 with only modest activity. As the economy improves, so too will this area of Atlanta’s office market.