Q3 2010 | SOUTH ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS
Square Feet
NEW SUPPLY, ABSORPTION AND VACANCY RATES 1,500,000
16%
1,000,000
15% 14%
500,000 13%
145,563,664
Total SF Vacancy Rate
15.5%
YTD Net Absorption
(567,177)
YTD Deliveries
1,180,824
Under Construction
1,150,000
Avg. Warehouse Rate
$2.77 NNN
0 3Q09
4Q09
1Q10
2Q10
3Q10
12%
(500,000)
11%
(1,000,000)
10% Absorption
Deliveries
Source: CoStar Property
Vacancy
MARKET INDICATORS Q3 2010 VACANCY
NEXT QTR
UPDATE Recent Transactions in the Market SALES ACTIVITY
—
NET ABSORPTION CONSTRUCTION RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
665 Highway 74 S.
$5,200,000
117,221
$44.36
HJB Holdings
—
375 Highway 74 S.
$5,075,000
114,800
$44.207
Rosdev Development
—
3640 Royal South Pky.- 1
$4,700,000
116,848
$40.22
EGLO Real Property
2251 Sylvan Rd.
$3,432,322
625,000
$5.49
Boles Parts Supply
South Atlanta
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Phillips Van Heusen
127 Liberty Industrial Pky.
851,349
Distribution Lease
Proctor & Gamble
7320 Oakley Industrial
400,314
Warehouse Renewal
Army Air Force Exchange
7139 Southlake Pkwy.
292,800
Warehouse Lease
HHGregg
3000 SouthPark Blvd.
273,200
Warehouse Renewal
•
South Atlanta experienced the highest amount of space absorbed in the Atlanta industrial market for third quarter. Kraft’s move into 980,000 SF was the largest space occupied. Despite the positive quarter, year-to-date absorption remains negative for the submarket.
•
Kraft’s build-to-suit at Majestic Airport Center III was the largest, and only significant delivery in the Atlanta industrial market this quarter.
•
Leasing activity in South Atlanta has picked up as of late. Along with large renewals, the submarket is winning some of the largest space requirements in the market. Phillips Van Heusen was the largest deal signed in third quarter, and also the largest for the year.
•
The 1,150,000 SF build-to-suit for Clorox is the largest industrial project currently under construction.