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
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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.