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.