Q4 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%
145,722,072
Total SF Vacancy Rate
15.4%
YTD Net Absorption
(644,555)
YTD Deliveries
1,180,824
Under Construction
1,150,000
Avg. Warehouse Rate
$2.76 NNN
0 4Q09
1Q10
2Q10
3Q10
4Q10
12%
(500,000)
11%
(1,000,000)
10% Absorption
Deliveries
Source: CoStar Property
Vacancy
MARKET INDICATORS Q4 2010
NEXT QTR
UPDATE Recent Transactions in the Market SALES ACTIVITY
VACANCY NET ABSORPTION CONSTRUCTION RENTAL RATE
PROPERTY ADDRESS
SALE PRICE
SIZE SF
PRICE / SF
BUYER
150 Greenwood Ind. Pky.
$24,416,500
879,850
$27.75
Blackstone Real Estate
—
Atlanta Tradeport 200-1000
$21,550,000
301,709
$71.43
TA Realty Associates
—
Air Commerce BP 100, 200
$17,000,000
268,400
$63.34
TA Associates
108 Declaration Dr.
$4,000,000
92,000
$43.48
Henry County Dev. Auth.
—
South Atlanta
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Electrolux
7780 Spence Rd.
798,296
Warehouse Lease
OHL
275 Declaration Dr.
302,400
Warehouse Renewal
Exel
4800 Coates Dr.
289,106
Warehouse Lease
Jacobson
3060 SouthPark Blvd.
246,258
Warehouse Lease
•
South Atlanta finished 2010 with almost 650,000 SF given back by tenants. Fourth quarter’s occupancy loss of 624,785 SF became the deciding factor to the submarket’s performance in the year. The submarket was mostly consumed by move-outs in the fourth quarter including Advance Distribution vacating 399,177 SF in Henry Co., Sabre vacating 346,113 SF in South Fulton and National Distribution Centers vacating 292,800 SF just south of the airport.
•
The overall vacancy rate in South Atlanta has increased 1.2% from the end of 2009. This amounts to 1.8 million sq. ft. added in the year; factored from a combination of deliveries and negative absorption.
•
Despite the negative year, leasing activity in South Atlanta came on strong in the second half of 2010. The submarket is expected to be one of the strongest in Atlanta and one of the first to recover in 2011.