Q2 2011 | SOUTH ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS
143,455,277
Total SF
2,500,000
16%
Vacancy Rate
2,000,000
15%
Square Feet
NEW SUPPLY, ABSORPTION AND VACANCY RATES
1,500,000
14%
1,000,000 13% 500,000 12%
0 (500,000)
2Q10
3Q10
4Q10
1Q11
2Q11
(1,000,000) Deliveries
YTD Net Absorption
1,713,227
YTD Deliveries
1,150,000 409,006
Under Construction
11% 10%
Absorption
15.2%
Avg. Warehouse Rate
$2.82 NNN
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q2 2011
UPDATE Recent Transactions in the Market
Q3 2011
SALES ACTIVITY VACANCY NET ABSORPTION CONSTRUCTION
—
RENTAL RATE
—
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
8400 Tatum Rd.
$12,750,000
1,337,487
$9.53
Lowe’s Home Centers
3025 Sylvan Rd.
$4,052,841
415,676
$9.75
Parking Co. of America
3430 Empire Blvd.
$2,695,000
38,833
$69.40
ARKA Properties Group
4849 Massachusetts Blvd.
$2,689,000
148,850
$18.07
Telecycle
South Atlanta
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Home Depot
335 Greenwood Pl.-100
1,245,868
Warehouse Renewal
Ceva Logistics
3201 Center Pkwy.
404,700
Warehouse Lease
Home Depot
180 Westridge Pkwy.
363,286
Warehouse Lease
LifeScience Logistics
Majestic Airport Ctr. II
255,000
Warehouse Lease
•
Despite the negative second quarter, South Atlanta still leads the entire Atlanta industrial market with space absorption for the year. Second quarter’s negative activity was expected due to Clorox moving out of 3201 Center Pkwy. The good news is Ceva Logistics signed a lease to backfill the majority of this space by the end of the year.
•
South Atlanta’s average rental rate is holding steady. Still, the amount is the lowest it has been in six years. Rents will continue to stabilize and even possibly go up by year’s end due to the increased demand for space in the submarket.
•
The South Atlanta market will finish 2011 with its highest occupancy gain in four years. Lowe’s Home Stores, SANY America and Home Depot are expected to move into large spaces in the second half.