Q3 2010 | NORTHWEST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES
Total SF
100,000
20%
Vacancy Rate
19%
YTD Net Absorption
80,000 60,000 40,000
18%
20,000
17%
0 (20,000)
3Q09
4Q09
1Q10
2Q10
3Q10
(40,000)
16% 15%
Absorption
Deliveries
24,361,148 19.3% (12,916)
YTD Deliveries
0
Under Construction
0
Avg. Class A Rate
$20.53
Source: CoStar Property
Vacancy
MARKET INDICATORS
VACANCY
Q3 2010
NEXT QTR
—
—
UPDATE Recent Transactions in the Market SALES ACTIVITY
NET ABSORPTION CONSTRUCTION
—
RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
Vinings Main
$24,000,000
257,064
$93.36
ACG Equities, LLC
—
3919 Atlanta Hwy.
$2,314,100
8,409
$279,19
AEI Income Growth Fund
—
3825 Cherokee St.
$1,635,000
10,000
$163.50
Braden & Flanagan, LTD
980 Woodstock Pky.
$1,400,000
19,314
$72.49
Woodstock Medical Gr.
Cumberland
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
JM Huber
Cumberland Center II
55,716
Class A Lease
ARCADIS US
Paces Summit
36,460
Class A Lease
Digital Insurance
Galleria 400
32,000
Class A Renewal
Bank of America
Galleria 300
24,000
Class A Renewal
•
Third quarter absorption in the Cumberland office market was a mixed bag. Move-ins by GE Energy, WinSonic Digital and Waste Management helped provide positive absorption to the area; however, large move-outs from FirstData at Powers Ferry Landing East and Accuity/Zep at One Riverside negated the positive gains in occupancy.
•
Office vacancy has held steady at 19% for the past year. Activity in the submarket has been evenly balanced. This will likely be the case through the end of 2010. Leasing remains active, though most of the transactions have been renewals.
•
Cumberland’s average rental rate increased for the first time in two years. The overall average is up 0.6%, or $0.12/sf, from last quarter. The Class A average showed no movement holding at $20.53/sf.
MARKET REPORT | Q3 2010 | 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
300 Galleria
200 Galleria
Cumberland Center II
502,519 SF
438,709 SF
433,366 SF
438,273 SF
413,247 SF
82.2%
71%
77%
71.7%
95.5%
24,931 SF
33,101 SF
73,293 SF
23,094 SF
71,223 SF
$25.00
$23.50-$25.00
$24.50
$16.00-$21.00
$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
701,327 SF
78.7%
76%
84.2%
76.3%
47,550 SF
47,550 SF
39,839 SF
69,425 SF
$20.50-$21.00
$20.50-$21.00
$22.00
$23.50-$24.25
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 | Q3 2010 | ATLANTA OFFICE | NORTHWEST ATLANTA
9 5
4
8
4
3 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 | Q3 2010 | ATLANTA OFFICE | NORTHWEST ATLANTA
IN THE NEWS CID releases Green Transit-Oriented Development report: The Cumberland Community Improvement District (CCID) recently released a comprehensive 90-page report regarding Green Transit-Oriented Development in the Cumberland area. The document outlines a framework for retrofitting the commercial core of the Cumberland region into a vibrant mixed-use and pedestrianfriendly community through regional light-rail transit. Six components are identified in the report which provide the basis for the Framework’s integration. These include Smart Location & Linkage, Neighborhood Design & Walkability, Green Infrastructure & Buildings, Innovation & Health, Community Process & Place Making and Policy & Implementation. Each component addresses specific issues in the Cumberland area as it relates to transportation, housing, environmental quality, quality of life, livability and sustainability. The main focus of the report is to guide policies for the coming years in order to meet the community’s livability and growth issues as it relates to new development and population growth. Transit development is a key component of the community’s future plans; with the purpose of providing options and alternatives to the car-oriented public in the area. One example which has been promoted for years by the CID is a light rail system to connect the Cumberland area with other major employment centers such as Town Center in Kennesaw as well as the Perimeter, Midtown and/ or Downtown Atlanta markets.
480 offices in 61 countries on 6 continents
• Cumberland
United States: 135 Canada: 39 Latin America: 17 Asia Pacific: 194 EMEA: 95 •
$2 billion in annual revenue
• Over 2 billion square feet under
management • Over 15,000 professionals
UNITED STATES: KENNESAW | MARIETTA | CHEROKEE CO. Office Market Stats
80,000
20%
Total SF
60,000
19%
Vacancy Rate
18%
YTD Net Absorption
17%
YTD Deliveries
16%
Under Construction
79,150
15%
Avg. RentalRate
$17.95
40,000
8,017,013 % 50,166
20,000 0 (20,000)
3Q09
4Q09
1Q10
2Q10
3Q10
(40,000) Absorption
Deliveries
0
Source: CoStar Property
Vacancy
Colliers International 1349 West Peachtree Street Suite 1100 Atlanta, Georgia, 30309 TEL +1 404 888 9000 FAX +1 404 870 2845
COLLIERS INTERNATIONAL | ATLANTA OFFICE | NORTHWEST ATLANTA LISTINGS
COLLIERS INTERNATIONAL ATLANTA OFFICE SPECIALISTS: Bob Allen
Craig Mendel
Neal Baker
Scott O’Halloran
Lee Evans
Hugh Pafford
Huston Green
Jodi Selvey
Russ Jobson
Fred Sheats
Nicole Kamen
Pete Shelton
Jeff Kelley
Hayes Swann
Brett Kingman
Andrew Walker
Michael Lipton
Bob Ward
Bob Mathews
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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