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Q4 2010 | DOWNTOWN

ATLANTA

SUBMARKET REPORT

TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES

Total SF

24,644,071

300,000

17%

Vacancy Rate

16%

YTD Net Absorption

15%

250,000

Square Feet

200,000 150,000

15%

100,000 50,000

YTD Deliveries

0

Under Construction

0

14%

0 (50,000)

167,399

4Q09

1Q10

2Q10

3Q10

4Q10

13%

(100,000) (150,000)

12% Absorption

Deliveries

Avg. Class A Rate

$19.38

Source: CoStar Property

Vacancy

MARKET INDICATORS

VACANCY

Q4 2010

NEXT QTR

UPDATE Recent Transactions in the Market SALES ACTIVITY

NET ABSORPTION CONSTRUCTION

PROPERTY ADDRESS

SALE PRICE

SIZE SF

PRICE / SF

BUYER

353-363 Parkway Dr.

$1,000,000

9,000

$111.11

Metro Atlanta Ob/Gyn

139 Ralph McGill Blvd.

$850,000

19,500

$43.59

Ralph McGill 139, LLC

RENTAL RATE

Downtown

LEASING ACTIVITY

www.colliers.com/atlanta

TENANT

PROPERTY ADDRESS

SIZE SF

TYPE

Turner Broadcasting Co.

Centennial Tower

115,000

Class A Renewal & Exp.

HKS Inc.

191 Peachtree

15,965

Class A Lease

Vitrue

Centennial Tower

14,500

Class A Lease

Connecture

Centennial Tower

13,000

Class A Lease

Downtown finished the year with (30,578) SF of negative quarterly absorption; however, for the year as a whole, the submarket saw total occupancy increase by 167,399 SF. This was the third highest amount of space absorbed among Atlanta’s office submarkets in 2010.

The office vacancy rate in Dowtown dropped a full percentage point since first quarter. During this time, over 365,000 SF of vacant space has been filled.

The largest Downtown move-ins of 2010 were mostly full-floor deals in a number of properties. The U.S. Nuclear Regulatory Commission and Hall Booth Smith & Slover absorbed the largest spaces moving into 102,436 SF and 54,000 SF respectively.


MARKET REPORT | Q4 2010 | ATLANTA OFFICE | DOWNTOWN

SKYLINE REVIEW Space Available Direct Sublet

60 55 50 45 40

Floors

35 30 25 20 15 10 5

BUILDING RBA

Bank of America Plaza

SunTrust Plaza

Georgia-Pacific Center

191 Peachtree

Centennial Tower

1,253,499 SF

1,249,022 SF

1,133,840 SF

1,209,721 SF

638,731 SF

79.7%

92.8%

88.3%

81.1%

88.4%

203,068 SF

23,545 SF

109,652 SF

102,045 SF

37,600 SF

$30.00-$31.00

$26.00-$28.00

$21.00-$22.00

$26.00

$17.00-$22.00

1

2

3

4

5

% LEASED LARGEST SPACE AVAIL. RENTAL RATE PER SF (Gross)

12 11

8

1 9

2

7

8 4 3 10 9 6 3 5

10

2 7 6

5 1 3

P. 2

| COLLIERS INTERNATIONAL

4

2

1

13 15 14

16


MARKET REPORT | Q4 2010 | ATLANTA OFFICE | DOWNTOWN

NOTABLE PROJECTS Source: CoStar Property

1

E Q U I TA B L E

COLLEGE FOOTBALL HALL OF FAME 50,000 SF Delviering Spring 2013

2

100 Peachtree

Marquis One

North Tower

270 Peachtree

55 Park Place

625,000 SF

460,437 SF

302,951 SF

325,000 SF

553,018 SF

47.7%

67%

65.9%

73.6%

74.2%

181,634 SF

54,287 SF

126,713 SF

41,772 SF

278,716 SF

$17.50-$19.50

$20.50-$21.50

$18.50-$19.50

$18.00-$19.00

$18.50

6

7

8

9

10

AERIAL LEGEND

POINTS OF INTEREST 1 Georgia Dome

100,000 SF $125 million project Construction pending

3

9 The Varsity

2 Philips Arena

10 Georgia Tech

World 3 Georgia Congress Center

11 Atlanta Civic Center

4 CNN Center

Sweet Auburn 12 Curb Market

MARTA Rail Line

5 Centennial Olympic Park

13 Georgia State University

New Construction

6 Georgia Aquarium 14 Underground Atlanta

Buildings by Number (see opposite page)

CIVIL RIGHTS MUSEUM

7 World of Coke

15 State Capital

8 The Fox Theater

16 Turner Field

50 ALLEN PLAZA 870,914 SF Developer: Barry Real Estate Proposed

COLLIERS INTERNATIONAL |

P. 3


MARKET REPORT | Q4 2010 | ATLANTA OFFICE | DOWNTOWN

IN THE NEWS

480 offices in 61 countries on 6 continents

• Cousins,

Jacoby, Russell vie for transit hub work: The Georgia Department of Transportation has narrowed down its search for development of the “Gulch” property, one of the largest transit-oriented developments in the nation. Local developers Cousins Properties, Jacoby Development and H.J. Russell are all competing to win the assignment. Each developer was required to submit a proposal to include master plans for the project including construction, management and financing. The GDOT is expected to make its selection of the winning developer by midsummer. State University picks site for business, law schools: The site for Georgia State’s new business and law schools were recently purchased by the university. About 2.4 acres at John Wesley Dobbs and Park Place were sold to GSU for $17.8 million in December 2010. No plans are imminent for the property, however, GSU will use this site for its new business and law schools which will encompass approximately 400,000 SF of expanded facilities. As it has done in the past, Georgia State continues to dominate the Downtown landscape with the purchase. The new buildings will raise GSU’s business and law school profiles regionally and nationally.

United States: 135 Canada: 39 Latin America: 17 Asia Pacific: 194 EMEA: 95

• Georgia

• College

football hall set for World Congress Center area: A 2.7-acre parcel off of Marietta Street adjacent to the Georgia World Congress Center will be the future home of the College Football Hall of Fame when it moves from South Bend, Indianapolis. The location is across from Centennial Olympic Park allowing the attraction to be in an area frequently visited by tourists. The $50 million facility will include a 50,000 SF low-rise building with event space and a 3-D theater. Construction is expected to begin in August of 2011 with a completion date by the spring of 2013. AT A GLANCE | Streetcar gets funding

U.S. Department of Transportation agrees to grant $47 million to the city’s proposed $70 million streetcar project.

First phase of project will run 2.6 miles from the King Center site to Centennial Olympic Park, featuring a dozen stops and direct connection to MARTA.

$2 billion in annual revenue

• Over 2 billion square feet under

management • Over 15,000 professionals

UNITED STATES: Colliers International 1349 West Peachtree Street Suite 1100 Atlanta, Georgia, 30309 TEL +1 404 888 9000 FAX +1 404 870 2845

COLLIERS INTERNATIONAL ATLANTA OFFICE SPECIALISTS: Bob Allen

Craig Mendel

Expected to provide 2,600 trips a weekday in its first year of operation.

Lee Evans

Scott O’Halloran

Deming Fish

Hugh Pafford

Critics argue the streetcar will do nothing to ease metro Atlanta’s biggest transportation problems.

Huston Green

Jodi Selvey

Russ Jobson

Fred Sheats

Construction begins in 2012 with a completion date targeted for 2013.

Nicole Kamen

Pete Shelton

Jeff Kelley

Hayes Swann

Brett Kingman

Andrew Walker

Michael Lipton

Bob Ward

Bob Mathews COLLIERS INTERNATIONAL | ATLANTA OFFICE | DOWNTOWN LISTINGS

This market report is a research document of Colliers International. Information herein has been deemed reliable and no representation is made as to the accuracy thereof. Colliers International-Atlanta, Inc., and certain of its subsidiaries, is an independently owned and operated business and a member firm of Colliers International Property Consultants, an affiliation of independent companies with over 480 offices throughout more than 61 countries worldwide.

135 ANDREW YOUNG INTL. BLVD. 11,000 SF Sale Jodi Selvey / Pete Shelton

www.colliers.com/atlanta

HERNDON PLAZA 105,323 SF Sale Pete Shelton

Accelerating success.


4Q 2010 | Atlanta Downtown Office Market Report  

Colliers International Office Market Report for Atlanta Downtown Submarket

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