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.