Q2 2011 | NORTH FULTON
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 300,000
YTD Net Absorption
Avg. Class A Rate
Source: CoStar Property, Colliers Research
MARKET INDICATORS Projected
UPDATE Recent Transactions in the Market
SALES ACTIVITY VACANCY PROPERTY ADDRESS
NET ABSORPTION CONSTRUCTION
PRICE / SF
4100 Old Milton Pkwy.
Burke Wilson, etal.
7310 McGinnis Ferry Rd.
Hisense USA Corp.
11445 Johns Creek Pkwy.
11138 State Bridge Rd.
Columbia Insurance Gr.
Research In Motion
Royal Centre Three
Class A Renewal & Exp.
Parkway 400 - II
Class A Renewal
Royal Centre Four
Class A Renewal
Class A Lease
North Fulton leads the Atlanta office market with year-to-date absorption of 510,694 SF. Second quarter occupancy topped 225,000 SF for the second consecutive period; led by the move-ins of Cotton States Mutual, AmTrust Financial and Thyssen Krupp.
Since this time last year, North Fulton’s vacancy rate has decreased by 1.5%. This amounts to almost 450,000 SF of vacant space filled during this time. Although recovery as a whole has been muted in the Atlanta market, North Fulton has benefited from growth in the tech industry, which has been the strongest industry sector over the past twelve months.
Looking to the second half of 2011, the submarket will continue seeing activity. Occupancy, however, is likely to drop in the third quarter due to AT&T consolidating 376,350 SF to its Midtown campus.
MARKET REPORT | Q2 2011 | ATLANTA OFFICE | NORTH FULTON
IN THE NEWS
512 offices in 61 countries on 6 continents
Park goes for $22.8 million: The former luxury retail and mixed-used development known as Prospect Park has a new owner. Wells Fargo sold the 101-acre property to North American Properties for $22.8 million ($225,742 an acre). The property was previously owned by developer Stan Thomas. The bank took control of the land when loan obligations were not met; a common theme among large developments under construction prior to the economic downturn. North American Properties plans to scale down the next version of the project from 850,000 SF of retail to around 400,000 SF. The development will still include some elements of office and for-sale residential units. The new owner hopes to have the first phase completed by October 2013, prior to the holiday season. tech company moves corporate headquarters to Alpharetta: As yet another tech win for the North Fulton office submarket, information technology company Agilysys completed its move into 29,500 SF at 1000 Windward Concourse in the second quarter, relocating its headquarter operations from Cleveland, Ohio. The move comes from the company’s desire to reduce costs and better align its corporate functions already located in the southeast. About 100 jobs were relocated to North Fulton.
United States: 125 Canada: 38 Latin America: 18 Asia Pacific: 214 EMEA: 117
a target for new office building: JP Morgan Chase is reportedly interested in beginning construction of Stonebridge IV in Sanctuary Park, but only if certain preleasing requirements are met. The owner hopes to land one of the current requirements scouting the area as its anchor tenant. AT A GLANCE | Prospect Park Goes For $22.8 Million
$1.5 billion in annual revenue
• Over 2.2 billion square feet under
management • Over 13,000 professionals
UNITED STATES: 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
Former luxury retail and mixed-use development proposed by developer Stan Thomas.
Foreclosed on by Wells Fargo as a result of the economic downturn.
North American Properties will scale down development from 850,000 SF of retail to about 400,000 SF.
COLLIERS INTERNATIONAL ATLANTA OFFICE SPECIALISTS: Bob Allen
Will include a mix of office and forsale residential in addition to retail.
First phase completion planned for October 2013.
COLLIERS INTERNATIONAL | ATLANTA OFFICE | NORTH FULTON LISTINGS
ROYAL CENTRE 1,723-51,634 SF Lease Lee Evans / Scott O’Halloran
100 WINDWARD FOREST 21,211 SF Lease Lee Evans / Scott O’Halloran
LAKE @ NORTHPOINT 1,501-15,623 SF Lease Lee Evans / Scott O’Halloran
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.