Q2 2010 | SOUTH ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 16%
600,000 400,000
15%
200,000 14%
0 (200,000)
2Q09
3Q09
4Q09
1Q10
2Q10
(400,000)
13% 12%
(600,000)
142,308,394
Total SF Vacancy Rate
15%
YTD Net Absorption
(290,749) 200,000
YTD Deliveries Under Construction
2,140,000
11%
(800,000) (1,000,000)
10% Absorption
Deliveries
Avg. Warehouse Rate
$2.81
Source: CoStar Property
Vacancy
MARKET INDICATORS Q2 2010 VACANCY
NEXT QTR
UPDATE Recent Transactions in the Market SALES ACTIVITY
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NET ABSORPTION CONSTRUCTION RENTAL RATE
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PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
500 Business Center Dr.
$24,184,900
710,450
$34.04
Dividend Capital
201 King Mill Rd.
$19,866,100
560,467
$35.45
Dividend Capital
SouthPoint Bldg. B
$9,500,000
297,000
$31.99
Cabot Properties
81 Lees Mill Rd.
$1,200,000
11,400
$105.26
Falken Materials
South Atlanta
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Proctor & Gamble
7320 Oakley Industrial
400,000
Warehouse Renewal
IFCO
100 Constitution Drive
192,000
Distribution Lease
TricorBraun
260 Southfield Pkwy.
125,000
Distribution Renewal
WEL Companies
125 Southside Ct.
122,530
Distribution Lease
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Second quarter industrial absorption was positive in the South Atlanta submarket, albeit by only a minimal amount. Year-to-date absorption remains in negative territory.
•
Leasing activity was pretty quiet in South Atlanta over the past three months. The I-75 South/Henry County section of the submarket saw the largest deals signed in second quarter with WEL Companies and IFCO leasing 122,530 SF and 192,000 SF respectively.
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Construction activity remains highest in the submarket with 2.1 million square feet currently being built in three buildings. These are all build-to-suit projects. IDI’s Oakley Industrial building for Clorox is the largest at approximately 1.15 million square feet.
•
Activity is likely to remain stagnant for South Atlanta through the second half of the year.