Q2 2010 | NORTHWEST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS
57,134,929
NEW SUPPLY, ABSORPTION AND VACANCY RATES
Total SF
800,000
18%
Vacancy Rate
600,000
16%
400,000
14%
200,000
12%
0 (200,000)
10% 2Q09
3Q09
4Q09
1Q10
2Q10
6%
(600,000)
4%
(800,000)
2% Deliveries
YTD Net Absorption
442,301 0
YTD Deliveries
8%
(400,000)
Absorption
14%
Under Construction Avg. Warehouse Rate
18,750 $3.70
Source: CoStar Property
Vacancy
MARKET INDICATORS Q2 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
1940 W. Oak Cir.
$6,750,000
215,962
$31.26
Roark Capital
—
800 Martin L. King Dr.
$4,350,000
57,500
$75.65
The Alpert Group
—
1100 Cobb Intl. Blvd.
$2,700,000
45,661
$59.13
Systems Atlanta
1039 Northpoint Dr.
$2,585,000
210,778
$12.26
MDH Partners
Northwest
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
JVC
1039 Northpoint Pkwy.
210,778
Warehouse Lease
Recycletronics
7000 Cobb International
150,724
Warehouse Lease
Illinois Tool Works
2850 Barrett Lakes Blvd.
87,500
Warehouse Renewal
Consumer Product Services
Cherokee Commerce Ctr.-3
50,007
Warehouse Lease
•
A strong second quarter of absorption helped bring net absorption on the year in Northwest Atlanta into positive territory. In addition, the submarket has the second highest year-to-date industrial absorption total in the Atlanta market.
•
Despite losing a record amount of occupancy in 2008 and 2009, Northwest Atlanta appears to be in recovery mode now. Leasing activity has picked up in 2010 and vacancy has dropped almost a full percentage point since its peak of 15.7% in the third quarter of 2009.
•
Industrial property sales in Northwest Atlanta have been relatively active in 2010 with $31.8 million sold to date. The majority of these sales are user sales.
•
The submarket’s average rental rate is down 13% from this time last year and 27% from two years ago.