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.
MARKET REPORT | Q4 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
90.5%
69.3%
74%
86.7%
84.5%
9,931 SF
39,898 SF
22,822 SF
24,586 SF
48,491 SF
$22.00-$25.00
$22.50-$27.00
$17.00-$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
85.8%
82.3%
86%
88.8%
34,253 SF
20,734 SF
11,186 SF
25,341 SF
$21.00-$21.50
$21.00-$21.50
$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 | Q4 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 | Q4 2011 | ATLANTA OFFICE | NORTHWEST ATLANTA
IN THE NEWS
512 offices in 61 countries on 6 continents
• Cobb
County nabs over two dozen major projects in 2011: The economic development teams in Cobb County and the Cumberland Community Improvement District were busy securing new business in 2011. The area attracted over two dozen major projects in the last twelve months. The most recent win was the announcement of Home Depot choosing Cobb for a new customer support call center which will bring 700 jobs to the county. Other big wins in the year were Osmotica Pharmaceutical Corp. investing $20 million in a manufacturing and R&D facility in Marietta, Novelis choosing the Kennesaw area for a new research and development center, and CCH Small Firm Services choosing to bring 200 employees from outside the state to its Kennesaw operation. Business leaders hope these accomplishments will provide momentum going forward into 2012 as they target specific industry clusters such as aerospace, business & professional services, supply-chain logistics and information technology.
• 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.
Square Feet
KENNESAW | MARIETTA | CHEROKEE CO. Office Market Stats
140,000
18%
120,000
17%
100,000
16%
80,000
15%
60,000
8,837,320
Vacancy Rate
15%
YTD Net Absorption
13%
20,000
12%
0 4Q10
1Q11
2Q11
3Q11
4Q11
(40,000)
11% 10%
Absorption
Deliveries
YTD Deliveries
0
Under Construction
15,000
Avg. RentalRate
$16.00
Vacancy
Source: CoStar Property, Colliers Research
COLLIERS INTERNATIONAL | ATLANTA OFFICE | NORTHWEST ATLANTA LISTINGS
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
OVERLOOK III 11,184 SF Sublease Andrew Walker
www.colliers.com/atlanta
•
$1.5 billion in annual revenue
• Over 2.2 billion square feet under
management • Over 13,000 professionals
UNITED STATES: 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
176,234
14%
40,000
(20,000)
Total SF
United States: 125 Canada: 38 Latin America: 18 Asia Pacific: 214 EMEA: 117
NEWMARKET BUSINESS PROF. BLDGS. @ PARK WOODSTOCK 1,060-4,653 SF Lease Bldg. 970 19,311 SF For Sale Lee Evans / Scott O’Halloran Andrew Walker / Craig Mendel
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
Jeff Kelley
Pete Shelton
Drew Lavine
Hayes Swann
Michael Lipton
Andrew Walker
Nicole Littleton
Bob Ward
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.
Accelerating success.