Q3 2011 | NORTHEAST ATLANTA
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES
100,000 80,000 60,000 40,000 20,000 0 (20,000) (40,000) (60,000) (80,000) (100,000)
YTD Net Absorption
Avg. Class A Rate
Source: CoStar Property, Colliers Research
MARKET INDICATORS Projected
UPDATE Recent Transactions in the Market
SALES ACTIVITY VACANCY
NET ABSORPTION CONSTRUCTION RENTAL RATE
PRICE / SF
Global Growth Trust
6625 The Corners
5707 Peachtree Pkwy.
3585 Engineering Dr.
Legacy Office Park
Class A Build-To-Suit
Class A Lease
5445 Triangle Pkwy.
Class A Lease
6575 The Corners Pkwy.
Class A Lease
For the first time this year, Northeast Atlanta saw meaningful office absorption. Over 80,000 SF of office space was absorbed in the submarket in the third quarter. Part of the occupancy increase comes from Rock-Tenn which moved into a portion of its new office space at Hampton Green.
Northeast Atlanta has weathered the brunt of the economic downturn for the most part. Though most of the office deals continue to occur in Atlanta’s more prevalent submarkets, Northeast Atlanta is winning some important lease assignments like Rock-Tenn, Fleetcor and Primerica.
Heading into 2012, the submarket should see some momentum from recent transactions that have taken place. Although market conditions remain modest, occupancy levels are expected to trend upwards in the coming months.
MARKET REPORT | Q3 2011 | ATLANTA OFFICE | NORTHEAST ATLANTA
IN THE NEWS
512 offices in 61 countries on 6 continents
chooses Duke Realty to build new Gwinnett headquarters: Primerica will be moving from its existing headquarters into a new 344,476 SF build-to-suit. Duke Realty has been chosen by the financial services firm to develop its new facility. The building will be built on a 30-acre parcel in Duke’s Legacy office park at Georgia Hwy. 120 and Meadow Church Road. It will be the first office building developed in the park; and also the first office building over 100,000 SF to go under construction in Northeast Atlanta since One Sugarloaf Centre in 2009. Primerica plans to consolidate from existing facilities in the submarket to the building once it is completed in April 2013. to add 500 jobs, expand Norcross HQ: Rock-Tenn just recently announced a headquarters expansion in the Northeast Atlanta submarket. The company is consolidating its offices in Chicago and St. Louis, bringing 500 new jobs to metro Atlanta. The expansion comes on the heels of Rock-Tenn’s acquisition of Smurfit-Stone Container Corporation. The state of Georgia and Gwinnett County offered $15.7 million in incentives for Rock-Tenn to expand its corporate headquarters here. Accounting, finance, information technology and supply chain jobs will be relocated to the new Atlanta headquarters. Rock-Tenn will occupy 68,666 SF at Duke Realty’s Hampton Green office building. UPDATE: Rock-Tenn leases an additional 14,471 SF at Hampton Green.
United States: 125 Canada: 38 Latin America: 18 Asia Pacific: 214 EMEA: 117
$1.5 billion in annual revenue
• Over 2.2 billion square feet under
management • Over 13,000 professionals
UNITED STATES: AT A GLANCE | Primerica to move to new Gwinnett HQ •
Build-to-suit headquarters to be built for Primerica by Duke Realty.
Building to consist of 344,476 SF on 30-acres. First building to be developed in Duke Realty’s Legacy office park.
Primerica to consolidate from its current headquarters on Breckinridge Boulevard. New facility will help the company streamline its operations.
Expected completion April 2013.
COLLIERS INTERNATIONAL | ATLANTA OFFICE | NORTHEAST ATLANTA LISTINGS
Colliers International Two Midtown Plaza | Suite 1100 1349 West Peachtree Street, NE Atlanta, Georgia, 30309 TEL +1 404 888 9000 FAX +1 404 870 2845
COLLIERS INTERNATIONAL ATLANTA OFFICE SPECIALISTS: Bob Allen
302 RESEARCH DR 2,710-58,369 SF Lease Deming Fish / Scott O’Halloran
454 SATELLITE BLVD 2,815-18,762 SF Lease/Sale Jodi Selvey
230 SCIENTIFIC DR 5,000-20,436 SF Lease Lee Evans / Brett Kingman
250 SCIENTIFIC DR 4,776 SF Lease Lee Evans / Brett Kingman
SUGARLOAF VII 5,100 SF Lease Brett Kingman
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 512 offices throughout more than 61 countries worldwide.