Q4 2010 | NORTHWEST ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS
Square Feet
NEW SUPPLY, ABSORPTION AND VACANCY RATES 800,000
16%
600,000
14% 12%
400,000
10% 200,000 8% 0
(200,000)
6% 4Q09
1Q10
2Q10
3Q10
4Q10
57,418,227
Total SF Vacancy Rate
13.9%
YTD Net Absorption
589,333 18,750
YTD Deliveries
0
Under Construction
4%
(400,000)
2% Absorption
Deliveries
Avg. Warehouse Rate
$3.61 NNN
Source: CoStar Property
Vacancy
MARKET INDICATORS Q4 2010
NEXT QTR
UPDATE Recent Transactions in the Market SALES ACTIVITY
VACANCY NET ABSORPTION CONSTRUCTION
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RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
1892 Airport Industrial Blvd.
$7,900,000
147,474
$53.57
R&L Carriers
2120,2124 Barrett Park Dr.
$7,786,000
152,500
$51.06
Meritex Enterprises
166 Etowah Industrial Ct.
$4,209,000
211,948
$19.86
MDH Partners
7629 Highway 140
$2,275,000
101,762
$22.36
Godfrey Hirst USA
Northwest
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Shaw Industries
400 Princeton Blvd.
292,000
Warehouse Renewal
Mechadyne Machine
434 Seaboard Ind. Park Dr.
61,693
Warehouse Lease
TI Automotive
510 S. Tennessee St.
44,500
Warehouse Lease
Graphics Solutions
101 Old Mill Rd.
33,200
Warehouse Renewal
•
After two consecutive quarters of 400,000 SF+ in positive absorption, Northwest Atlanta saw total occupancy drop by 253,000 SF in the fourth quarter. Robina Floors and Transfreight were the largest move-outs. Robina Floors relocated to the I-20 West/Fulton Industrial submarket while Transfreight contracted their space by almost 50,000 SF in the quarter.
•
Northwest Atlanta’s overall vacancy rate is down 0.9% from the end of 2009. Positive absorption, along with minimal industrial space delivered were the reasons for the drop. The submarket’s largest move-ins in 2010 were JVC (210,778 SF), Americo (152,387 SF) and Recycletronics (150,724 SF).
•
Not much is expected to change with regards to leasing activity in the Northwest Atlanta industrial submarket, however, the outlook is more optimistic heading into 2011 than it has been in the past two years.