Q1 2011 | NORTHWEST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS
Square Feet
NEW SUPPLY, ABSORPTION AND VACANCY RATES 600,000
16%
400,000
14% 12%
200,000
10% 0
(200,000)
1Q10
2Q10
3Q10
4Q10
1Q11
8% 6%
(400,000)
4%
(600,000)
2% Absorption
Deliveries
59,891,343
Total SF Vacancy Rate
13.8%
YTD Net Absorption
228,878
YTD Deliveries
0
Under Construction
0
Avg. Warehouse Rate
$3.64 NNN
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q1 2011
UPDATE Recent Transactions in the Market
Q2 2011
SALES ACTIVITY
—
VACANCY NET ABSORPTION CONSTRUCTION
—
—
RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
Northgate Distr. Center
$9,035,000
209,386
$43.15
Trident Capital
2120,2124 Barrett Park Dr.
$7,786,000
152,500
$51.06
Meritex Enterprises
240 Northpoint Pkwy.
$5,572,500
222,900
$25
MDH Partners
166 Etowah Industrial Ct.
$4,209,000
211,948
$19.86
MDH Partners
Northwest
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Shaw Industries
400 Princeton Blvd.
292,000
Warehouse Renewal
Amendia
1755 W Oak Pkwy.
48,848
Distribution Lease
Casablanca Glass
850 Pickens Industrial Dr.
22,125
Warehouse Renewal
RM Group US
3240 Town Point Dr.
16,000
Distribution Lease
•
Northwest Atlanta absorbed just over 225,000 square feet in the first quarter of 2011. The majority of this activity came from mid-size move-ins ranging between 20,000 to 50,000 square feet.
•
Following a tumultuous year of occupancy losses in 2009, the Northwest Atlanta industrial submarket has since seen a positive turn in activity. Since the end of 2009, the overall vacancy rate has decreased by 0.7%. Over this time, 760,000 square feet of industrial space has been absorbed.
•
The outlook for the Northwest Atlanta industrial submarket remains tied to overall market conditions. Despite the positive activity over the past year, only about 28% of the vacancy added because of the recession has been backfilled. The good news is the submarket appears to be on the road to recovery.