Q3 2011 | SOUTH ATLANTA
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 18%
2,500,000
16% 1,500,000
Square Feet
Vacancy Rate
14.6%
17%
2,000,000
YTD Net Absorption
4,538,602
YTD Deliveries
1,620,006
15% 14%
1,000,000
13%
500,000
12% 0 (500,000)
144,739,029
Total SF
3Q10
4Q10
Absorption
1Q11
2Q11
Deliveries
3Q11
11% 10%
0
Under Construction Avg. Warehouse Rate
$2.83 NNN
Vacancy
Source: CoStar Property, Colliers Research
MARKET INDICATORS Projected
Q3 2011
UPDATE Recent Transactions in the Market
Q4 2011
SALES ACTIVITY
—
VACANCY NET ABSORPTION
—
CONSTRUCTION RENTAL RATE
—
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
5290 Old Dixie Hwy.
$9,275,000
226,239
$41
High Street Equity Adv.
700 Dividend Dr.
$3,600,000
50,400
$71.43
IPN USA Corp.
4849 Massachusetts Blvd.
$2,689,000
148,850
$18.07
Telecycle
140 Amlajack Way
$2,450,000
54,212
$45.19
Pearson Engineering
South Atlanta
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Louis Dreyfus Commodities
1791 Mt. Zion Rd.
515,429
Warehouse Renewal
Georgia-Pacific
250 Declaration Dr.
429,600
Warehouse Lease
Premier Specialty Products
76 Sprayberry
298,895
Manufacturing Lease
Round 2 Electronics
Majestic Airport Ctr. II
258,674
Warehouse Lease
•
South Atlanta accounted for more than half of the positive absorption in the Atlanta industrial market in third quarter. The largest move-in during the period was Lowe’s Companies which occupied its 1,337,487 square foot warehouse facility it purchased back in February.
•
The overall industrial vacancy rate in South Atlanta has dropped 2.1% since the beginning of the year. South Atlanta’s warehouse vacancy has dropped 3% during the same time.
•
The I-85 South Corridor of the submarket has been the most active leasing market in Atlanta this year. This area’s infrastructure, newer buildings and close proximity to the airport are reasons for the demand from major industrial space users.
•
The submarket will finish the year modest but still lead the Atlanta market in year-to-date absorption.