Q4 2011 | NORTHWEST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES
Total SF
100,000
Vacancy Rate
18%
80,000
17%
Square Feet
60,000 40,000
16%
20,000
15%
0 (20,000)
4Q10
1Q11
2Q11
3Q11
4Q11
(40,000)
14%
27,289,684 17%
YTD Net Absorption
137,533
YTD Deliveries
0
Under Construction
0
13%
(60,000) (80,000)
12% Absorption
Deliveries
Avg. Class A Rate
$21.29
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q4 2011 VACANCY
UPDATE Recent Transactions in the Market
Q1 2012
SALES ACTIVITY
—
NET ABSORPTION CONSTRUCTION
—
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
—
355 Tower Rd.
$10,450,000
55,000
$190
Wellstar Health System
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
Numerex
100 City View
37,194
Class A Lease
Coventry Healthcare
1100 Circle 75 Pkwy.
35,034
Class B Renewal
Floor & Decor
2233 Lakewood Dr.
30,810
Class A Lease
Homeowners Mortgage
Galleria 100
24,195
Class A Renewal
•
Though the fourth quarter of the year showed only a moderate amount of space absorbed in the Cumberland office market, the positive activity marks the fourth consecutive period with more tenants taking space than vacating space in the submarket.
•
Cumberland leasing activity remained steady throughout the year. The majority of leasing took place in the submarket’s Class A properties. Still, most of the Class A activity that occurred marketwide in the past year took place in neighboring submarkets. The Cumberland area ranked fifth in the Atlanta market in total leasing of this property type.
•
Much of the same is expected going forward for the Cumberland area. The submarket, however, has more momentum heading into 2012 given the amount of new projects occurring in the area.