Q2 2012 | NORTHWEST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS
Square Feet
NEW SUPPLY, ABSORPTION AND VACANCY RATES 150,000
19%
100,000
18%
50,000
17%
0 (50,000)
2Q11
3Q11
4Q11
1Q12
2Q12
16% 15%
(100,000) (150,000)
14%
(200,000)
13%
(250,000)
12% Absorption
Deliveries
Vacancy
Total SF
27,365,385
Vacancy Rate
17.9%
YTD Net Absorption
(169,602)
YTD Deliveries
0
Under Construction
0
Avg. Class A Rate
$21.68
Source: CoStar Property, Colliers Research
MARKET INDICATORS Projected
Q2 2012
UPDATE Recent Transactions in the Market
Q3 2012
SALES ACTIVITY VACANCY NET ABSORPTION CONSTRUCTION
—
—
RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
355 Tower Rd.
$10,450,000
55,000
$190
Wellstar Health System
Cobb Galleria 75
$9,255,000
113,848
$81.29
Baker Dennard & Goetz
280 Interstate North Cir.
$8,700,000
124,273
$70.01
Atlanta Property Group
358 Roswell St.
$2,120,000
30,000
$70.67
Philip Goldstein
Cumberland
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
First Option Mortgage
Platinum Tower
40,127
Class A Lease
PCI Group
1000 Parkwood
22,975
Class A Lease
In Zone Brands
Overlook III
17,911
Class A Lease
Timbervest
Northcreek OP 200
17,059
Class A Renewal & Expansion
•
Second quarter’s occupancy loss in the Cumberland office market was the worst of any other office submarket in Atlanta. Absorption totaled negative (212,176) SF over the past three months. Space consolidations by IBM at 1500 & 1600 Riveredge Pkwy. were the largest move-outs in the submarket. Also, Greenberg Traurig’s move-out at The Forum contributed to the negative result as well.
•
The Cumberland area is starting to see a small increase in leasing; however, activity remains lackluster for the most part. The submarket’s largest competitor, Central Perimeter, is seeing a majority of the leasing activity including the larger transactions in the market.
•
Cumberland is not likely to see substantial occupancy gains in the second half of 2012 which means the submarket will finish the year with more vacant space than it had at the beginning of the year.