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Q1 2011 | NORTHEAST ATLANTA

ATLANTA

SUBMARKET REPORT

TRENDS & HIGHLIGHTS

Square Feet

NEW SUPPLY, ABSORPTION AND VACANCY RATES

169,275,384

Total SF

1,500,000

18%

Vacancy Rate

1,000,000

16%

YTD Net Absorption

642,736

YTD Deliveries

482,223

Under Construction

215,000

500,000 14% 0 (500,000)

1Q10

2Q10

3Q10

4Q10

1Q11

12%

(1,000,000)

10%

(1,500,000)

8% Absorption

Deliveries

14.8%

Avg. Warehouse Rate

$3.39 NNN

Source: CoStar Property, Colliers Research

Vacancy

MARKET INDICATORS Projected

Q1 2011

UPDATE Recent Transactions in the Market

Q2 2011

SALES ACTIVITY

VACANCY NET ABSORPTION CONSTRUCTION RENTAL RATE

PROPERTY ADDRESS

SALE PRICE

SIZE SF

PRICE / SF

BUYER

235 Hog Mountain Rd.-A

$22,000,000

459,134

$47.92

LaSalle Investment Mgmt

2221 Northmont Pkwy.-700

$14,500,000

171,286

$84.65

Colony Realty Advisors

3025 Evergreen Dr.

$5,189,000

199,738

$25.98

Air Gas Safety

265 John B. Brooks Rd.

$3,100,000

83,113

$37.30

RESILUX America LLC

Northeast

LEASING ACTIVITY

www.colliers.com/atlanta

TENANT

PROPERTY ADDRESS

SIZE SF

TYPE

Echosphere

Suwanee Creek Bus. Park

95,538

Warehouse Renewal

C&L Logistics

6550 Jimmy Carter Blvd.

80,342

Warehouse Lease

SED International

3505 Newpoint Pkwy.

71,884

Warehouse Lease

Hilldrup Moving & Storage

Progress Distr. Ctr. III

62,500

Warehouse Lease

Northeast Atlanta was one of six industrial submarkets to experience positive absorption in the first quarter. The submarket had the second highest occupancy increase during the period at 642,736 SF. The largest move-in was Aldi Foods which occupied 482,223 SF in its newly delivered build-to-suit.

Vacant space in Northeast Atlanta remains the highest in all of Atlanta’s industrial market. The good news is the submarket’s vacancy rate has been on a downwards trend since this time last year.

The overall average rental rate for Northeast Atlanta showed no movement from the prior quarter. Rental rates here are likely to remain steady for at least the next few quarters.

The only remaining building under construction in the submarket is FedEx Ground’s new distribution center of 215,000 SF. The project recently broke ground and is scheduled for a fourth quarter delivery.


MARKET REPORT | Q1 2011 | ATLANTA INDUSTRIAL | NORTHEAST ATLANTA

COLLIERS INTERNATIONAL NORTHEAST ATLANTA INDUSTRIAL LISTINGS

480 offices in 61 countries on 6 continents

6

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

7 16 2 13

11 19 20 10

9

18

5 8

management • Over 15,000 professionals

14

3 4 17

$2 billion in annual revenue

• Over 2 billion square feet under

15 12

UNITED STATES:

1

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

FOR LEASE #

PROPERTY

SF AVAIL.

BROKER(S)

1

Oakbrook Summit

Availabilities

Elizabeth McSweeney

2

Northbrook Summit

6,000-40,800

Price Weaver / Mike Spears

3

Northbelt Business Park

Availabilities

Doug Tyler

4

Brook Hollow Distribution Ctr.

27,200-51,800

Elizabeth McSweeney

5

1280 Lakes Pkwy.

82,076

Elizabeth McSweeney / Bill Buist

6

1001 Cherry Dr.

97,205

Price Weaver / Bill Buist

7

Suwanee Creek

Availabilities

Elizabeth McSweeney

8

1300 Lakes Pkwy.

93,746

Elizabeth McSweeney / Bill Buist

9

Breckinridge North

Availabilities

Elizabeth McSweeney

10

4955 Avalon Ridge Pkwy.

16,550-28,527

Bill Buist / Elizabeth McSweeney

11

620 Old Peachtree Rd.

44,110

Bill Buist / Elizabeth McSweeney

12

Norcross Center

6,000-29,647

Elizabeth McSweeney

13

Gwinnett Progress Ctr.-200

103,925

Rick Vaughn

14

4245 International Blvd.

249,200

Ryan Sawyer / Mike Spears

15

6100 Atlantic Blvd.

217,497

Elizabeth McSweeney

16

2935 Shawnee Ind. Way

196,215

Elizabeth McSweeney / Bill Buist

17

6334-6452 Warren Drive

3,840-20,720

Lee Cardwell

18

Newpoint Commons

7,641-196,215

Elizabeth McSweeney

SF AVAIL.

BROKER(S)

COLLIERS INTERNATIONAL ATLANTA INDUSTRIAL SPECIALISTS: Marty Arnold

Elizabeth McSweeney

Douglas Biggs

Scott Plomgren

Sean Boswell

Henry Sawyer

Bill Buist

Ryan Sawyer

Lee Cardwell

Mike Spears

Chris Cummings

Rick Vaughn

Ben Logue

Price Weaver

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.

FOR SALE #

PROPERTY

2

Northbrook Summit

46,800

Price Weaver / Mike Spears

6

1001 Cherry Dr.

97,205

Price Weaver / Bill Buist

15

6100 Atlantic Blvd.

217,497

Elizabeth McSweeney

19

3025 Evergreen Drive

199,738

Price Weaver / Ben Logue

20

2444 Meadowbrook Pkwy.

222,524

Scott O’Halloran / Dennis Mitchell

www.colliers.com/atlanta

Accelerating success.


1Q 2011 | Atlanta Northeast Industrial | Market Report