Q3 2011 | NORTHWEST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 18%
40,000
17%
20,000
16%
Square Feet
60,000
15%
0
(20,000)
3Q10
4Q10
1Q11
2Q11
3Q11
13%
(60,000)
12% Deliveries
27,342,487
Vacancy Rate
17.4%
YTD Net Absorption
59,442
YTD Deliveries
0
Under Construction
0
14%
(40,000)
Absorption
Total SF
Avg. Class A Rate
$21.36
Vacancy
Source: CoStar Property, Colliers Research
MARKET INDICATORS Projected
Q3 2011 VACANCY
—
NET ABSORPTION
—
CONSTRUCTION
—
UPDATE Recent Transactions in the Market
Q4 2011
SALES ACTIVITY
—
RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
Riverwood 100
$81,500,000
502,527
$162.18
Highwoods Properties
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
1090,1130 Northchase Pky.
$7,700,000
165,205
$46.61
Crossgate Partners
Cumberland
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Piedmont Healthcare
Paces West
190,000
Class A Renewal & Expansion
Graphic Packaging
RiverEdge Summit
110,000
Class A Lease
Focus Receivables
1130 Northchase Pky.
35,767
Class B Renewal
Hewitt Associates
Riverwood 100
24,942
Class A Lease
•
The Cumberland office market is on track to finish the year with more space filled than vacated. The year-to-date absorption for the submarket totals 59,422 SF following third quarter’s positive activity. The amount is expectably modest considering; but it will be the first positive year since 2007 for the submarket if conditions hold steady through the end of fourth quarter.
•
Cumberland’s average rental rate showed a slight uptick in third quarter, though this is likely to be short-lived. Vacant space in the submarket remains high and landlords will continue competing for prospective tenants.
•
Leasing activity remains somewhat subdued in the area. There have been a couple of large deals take place, but most have been renewals of existing spaces; only a few expansions.
MARKET REPORT | Q3 2011 | ATLANTA OFFICE | NORTHWEST ATLANTA
SKYLINE REVIEW Space Available Direct Sublet 35
Source: CoStar Property
30
Floors
25 20 15 10 5
Riverwood 100
Overlook III
200 Galleria
400 Galleria
Cumberland Center II
502,527 SF
438,709 SF
438,273 SF
440,000 SF
413,247 SF
TYPICAL FLOOR SIZE
21,889 SF
26,000 SF
22,000 SF
23,157 SF
24,308 SF
% LEASED
92.5%
75.3%
72.5%
82%
96.2%
7,247 SF
20,205 SF
23,094 SF
24,586 SF
48,491 SF
$$22.00-$25.00
$22.50-$27.00
$16.00-$21.00
$24.50
$22.50
1
2
3
4
5
One Paces West
Two Paces West
Platinum Tower
3200 Wildwood Plaza
RBA
274,948 SF
371,523 SF
312,591 SF
706,307 SF
TYPICAL FLOOR SIZE
22,000 SF
20,640 SF
21,000 SF
43,362 SF
% LEASED
80%
82.3%
91.6%
77.5%
34,253 SF
20,734 SF
12,487 SF
69,425 SF
$20.50-$22.00
$20.50-$22.00
$22.50
$19.75-$23.00
6
7
8
9
BUILDING RBA
LARGEST SPACE AVAIL. RENTAL RATE PER SF (Gross)
35 30
Floors
25 20 15 10 5
BUILDING
LARGEST SPACE AVAIL. RENTAL RATE PER SF (Gross)
P. 2
| COLLIERS INTERNATIONAL
MARKET REPORT | Q3 2011 | ATLANTA OFFICE | NORTHWEST ATLANTA
9 5
4
8
3
4 2 3
2 1 5
1
1
4 2
6 7
6
AERIAL LEGEND
PLANNED CONSTRUCTION
Buildings by Numbers (see opposite page)
1
RIVERWOOD PROJECT
2
555 GALLERIA
New Construction
POINTS OF INTEREST Chattahoochee Recreation Center
1 Cumberland Mall
4
2 Galleria Mall
5 Dobbins Air Base
3
Cobb Energy Arts Centre
$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
6 Vinings Area
COLLIERS INTERNATIONAL |
P. 3
MARKET REPORT | Q3 2011 | ATLANTA OFFICE | NORTHWEST ATLANTA
IN THE NEWS
512 offices in 61 countries on 6 continents
• New
Home Depot facility bringing 700 jobs to Cobb: In a move to help boost its online business and consolidate its customer support services, Home Depot has chosen Cobb County for a new support call center which will bring 700 jobs to the county. The home improvement company will open the new facility in the Chastain Meadows office park about 12 miles north of its corporate headquarters. Home Depot was given multiple incentives by the county and state economic development authorities to locate the call center in Cobb County. Operations are expected to begin by late 2012. Packaging moving to RiverEdge Summit: Graphic Packaging is making the intra-submarket jump across the Chattahoochee River to new office space at RiverEdge Summit. The company, which is the largest U.S. producer of folding cartons, will lease about 110,000 SF in the building. The move will include multiple consolidations from older buildings in the submarket; and will likely occur in early 2012. In addition to the new office location, construction of a 20,000 SF research and development facility for the company will also take place.
United States: 125 Canada: 38 Latin America: 18 Asia Pacific: 214 EMEA: 117
• Graphic
• Highwoods
buys Riverwood 100: Highwoods Properties has purchased the 502,527 SF Riverwood 100 tower for $81.5 million. The publicly-traded REIT had been in negotiations with former owner GE Asset Management over the summer and finally closed on the transaction in September.
•
$1.5 billion in annual revenue
• Over 2.2 billion square feet under
management • Over 13,000 professionals
UNITED STATES: KENNESAW | MARIETTA | CHEROKEE CO. Office Market Stats
80,000
18% 17%
Square Feet
60,000
16% 15%
40,000
Total SF
8,418,968
Vacancy Rate
16.5%
YTD Net Absorption
58,876
14% 20,000
13% 12%
0 3Q10
4Q10
1Q11
2Q11
3Q11
(20,000)
11% 10%
Absorption
Deliveries
YTD Deliveries
0
Under Construction
16,150
Avg. RentalRate
$16.04
Vacancy
Colliers International Two Midtown Plaza | Suite 1100 1349 West Peachtree Street, NE Atlanta, Georgia, 30309 TEL +1 404 888 9000 FAX +1 404 870 2845
Source: CoStar Property, Colliers Research
COLLIERS INTERNATIONAL | ATLANTA OFFICE | NORTHWEST ATLANTA LISTINGS
COLLIERS INTERNATIONAL ATLANTA OFFICE SPECIALISTS: Bob Allen
Bob Mathews
Lee Evans
Craig Mendel
Deming Fish
Scott O’Halloran
Huston Green
Hugh Pafford
Tim Huffman
Jodi Selvey
Russ Jobson
Fred Sheats
Nicole Kamen
Pete Shelton
Jeff Kelley
Hayes Swann
Brett Kingman
Andrew Walker
Drew Levine
Bob Ward
Michael Lipton
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 9,317 SF Sublease Jeff Kelley / Pete Shelton / Bob Ward
www.colliers.com/atlanta
NEWMARKET BUSINESS PROF. BLDGS. @ PARK WOODSTOCK 1,060-4,653 SF Lease Bldgs. 960 & 970 each 19,311 SF Sale Lee Evans / Scott O’Halloran Andrew Walker / Craig Mendel
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 512 offices throughout more than 61 countries worldwide.
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