Q4 2010 | NORTHWEST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS
Square Feet
NEW SUPPLY, ABSORPTION AND VACANCY RATES 100,000
21%
50,000
20% 19%
0 4Q09
1Q10
2Q10
3Q10
4Q10
18%
Total SF
23,954,041
Vacancy Rate
20.3%
YTD Net Absorption
(154,017)
YTD Deliveries
0
Under Construction
0
(50,000) 17% (100,000)
16%
(150,000)
15% Absorption
Deliveries
Avg. Class A Rate
$20.46
Source: CoStar Property
Vacancy
MARKET INDICATORS Q4 2010
NEXT QTR
UPDATE Recent Transactions in the Market SALES ACTIVITY
—
VACANCY NET ABSORPTION CONSTRUCTION
—
RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
3333 Riverwood Pkwy.
$15,300,000
110,000
$139.09
Colony Realty Partners
—
790 Church St.
$10,100,000
98,534
$102.50
Ackerman & Co.
—
895 Canton Rd.
$8,700,000
43,173
$201.52
Marietta Eye Clinic
2233 Lake Park Dr.
$3,000,000
119,150
$25.18
Texas Teachers Ret.
Cumberland
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Digitial Insurance
Galleria 400
32,000
Class A Renewal
Bank of America
Galleria 300
24,000
Class A Renewal
Marriott International
Galleria 400
16,000
Class A Lease
Beck Compression
Overlook III
10,992
Class A Lease
•
The Cumberland office market posted its worst quarter of absorption for 2010 in the fourth quarter. Occupancy dropped by almost 100,000 SF during this period. The current lack of demand is the contributor to this. Cumberland saw its fair share of deals in 2010, however, leasing activity has been limited mostly to renewals and smaller transactions.
•
The submarket’s vacancy rate has hovered around 20% throughout the year. It is likely to remain around this percentage for the next couple of quarters.
•
Following last quarter’s rental rate increase, Cumberland’s average rental rate dropped back down to second quarter levels. The third quarter increase was likely a blip as current absorption and demand trends in the submarket do not support a rental rate increase.
MARKET REPORT | Q4 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
200 Galleria
400 Galleria
Cumberland Center II
502,519 SF
438,709 SF
438,273 SF
440,000 SF
413,247 SF
85.1%
73.3%
71.9%
68.3%
94.8%
24,931 SF
30,951 SF
23,094 SF
49,172 SF
71,223 SF
$25.00
$23.50-$25.00
$16.00-$21.00
$24.50
$22.50
1
2
3
4
5
One Paces West
Two Paces West
Platinum Tower
3200 Wildwood Plaza
274,948 SF
371,523 SF
312,591 SF
701,327 SF
76.9%
79.9%
88.4%
77.2%
47,550 SF
32,396 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 | Q4 2010 | ATLANTA OFFICE | NORTHWEST ATLANTA
9 5
4
8
3
4 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 | Q4 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
19%
60,000
Square Feet
18% 40,000
8,665,383
Vacancy Rate
17%
YTD Net Absorption
94,115
YTD Deliveries
56,736
COLLIERS INTERNATIONAL ATLANTA OFFICE SPECIALISTS:
Under Construction
46,650
Bob Allen
Craig Mendel
Lee Evans
Scott O’Halloran
17%
20,000 0 (20,000)
Total SF
4Q09
1Q10
2Q10
3Q10
4Q10
(40,000)
16%
15% Absorption
Deliveries
Colliers International 1349 West Peachtree Street Suite 1100 Atlanta, Georgia, 30309 TEL +1 404 888 9000 FAX +1 404 870 2845
Avg. RentalRate
$17.67 Source: CoStar Property
Vacancy
COLLIERS INTERNATIONAL | ATLANTA OFFICE | NORTHWEST ATLANTA LISTINGS
Deming Fish
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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