Page 1

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.

Accelerating success.

2Q 2011 | Atlanta North Fulton Office | Market Report  

Colliers International | Atlanta 2Q 2011 report for North Fulton office market

Read more
Read more
Similar to
Popular now
Just for you