Q2 2011 | NORTH FULTON
ATLANTA
SUBMARKET REPORT
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 300,000
18%
16%
Square Feet
27,849,411
Vacancy Rate
14.7%
17%
200,000 100,000
YTD Net Absorption
510,694
15%
0 (100,000)
Total SF
14% 2Q10
3Q10
4Q10
1Q11
2Q11
12% (200,000)
YTD Deliveries
0
Under Construction
0
13%
11%
(300,000)
10% Absorption
Deliveries
Avg. Class A Rate
$19.68
Source: CoStar Property, Colliers Research
Vacancy
MARKET INDICATORS Projected
Q2 2011
UPDATE Recent Transactions in the Market
Q3 2011
SALES ACTIVITY VACANCY PROPERTY ADDRESS
NET ABSORPTION CONSTRUCTION
—
RENTAL RATE
SALE PRICE
SIZE SF
PRICE / SF
BUYER
4100 Old Milton Pkwy.
$5,775,000
41,358
$139.63
Burke Wilson, etal.
—
7310 McGinnis Ferry Rd.
$3,329,000
35,832
$92.91
Hisense USA Corp.
—
11445 Johns Creek Pkwy.
$2,750,000
40,000
$68.75
Realco LLC
11138 State Bridge Rd.
$2,588,000
30,070
$89.07
Columbia Insurance Gr.
North Fulton
LEASING ACTIVITY
www.colliers.com/atlanta
TENANT
PROPERTY ADDRESS
SIZE SF
TYPE
Research In Motion
Royal Centre Three
61,315
Class A Renewal & Exp.
GXS
Parkway 400 - II
53,501
Class A Renewal
Siemens
Royal Centre Four
51,634
Class A Renewal
TitleMax
Brookside One
27,644
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
• Prospect
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
• Ohio
• Alpharetta
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
Bob Mathews
•
Will include a mix of office and forsale residential in addition to retail.
Lee Evans
Craig Mendel
Deming Fish
Scott O’Halloran
First phase completion planned for October 2013.
Huston Green
Hugh Pafford
Tim Hoffman
Jodi Selvey
Russ Jobson
Fred Sheats
Nicole Kamen
Pete Shelton
•
COLLIERS INTERNATIONAL | ATLANTA OFFICE | NORTH FULTON LISTINGS
Jeff Kelley
Hayes Swann
Brett Kingman
Andrew Walker
Drew Levine
Bob Ward
Michael Lipton
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
www.colliers.com/atlanta
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.
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