Q2 2012 | NORTH FULTON
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 150,000
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
1360 Upper Hembree Rd.
Senior Housing Prop. Tr.
4800 North Point Pky.
J4 Asset Management
3905 Brookside Pkwy.
Class B Renewal
Select Mgmt. Resources
Preston Ridge IV
Class A Renewal
Class A Renewal & Expansion
3025 Windward Pkwy.
Class A Lease
North Fulton saw more space given back than filled during the second quarter, resulting in negative absorption of (137,121) SF. This also brought the year-to-date absorption total into negative territory
For the most part, the submarket experienced a quiet quarter. Verizon’s move-out at One Deerfield Centre was the sole reason for the loss of occupancy this quarter.
Despite the negative quarter, leasing activity remained strong. A number of new deals and expansions have taken place in the submarket which will lead to occupancy gains later in the year.
North Fulton remains the most likely area to see the next new office building in Atlanta. JPMorgan Chase & Co. has plans for additional office buildings at Sanctuary Park and North American Properties is looking at an office component to its Avalon project. Preleasing will be key to any new construction.
MARKET REPORT | Q2 2012 | ATLANTA OFFICE | NORTH FULTON
IN THE NEWS • Ingenico
522 offices in 62 countries on 6 continents
United States: 147 Canada: 37 Latin America: 19 Asia Pacific: 201 EMEA: 118
to relocate, expand HQ in Atlanta: Ingenico will be relocating from an industrial business park in Forsyth County to a Class A office building in Alpharetta. The french company is known for manufacturing payment terminals but the relocation to Windward Plaza Business Park was needed to be in more of an office like setting and to be closer to key customer relationships. The company will be occupying 33,000 SF in the office building. The relocation is scheduled for third quarter 2012. commercial market looking up: The pickup in North Fulton’s office leasing over the first half of the year has provided a sense of optimism to the potential of new commercial development in the submarket. The increase in leasing activity can be attributed to pent-up demand and a return to confidence by businesses looking to expand or relocate their operations to North Fulton, especially technology and insurance companies. This has allowed for the marketing of a couple of new office projects, most notably in the Sanctuary Park development. JPMorgan Chase & Co. has plans drawn up for a new 160,000 SF office building known as Stonebridge IV, and also sites within the same park for two 10-story office buildings at 250,000 SF each, to be known as the “Towers at Sanctuary Park”. All three developments would require a significant portion to be preleased prior to going under construction.
gains tenants: The Avalon development continues to gain tenants. Following the signings of Whole Foods and Regal Cinemas, North American Properties has been able to secure more tenants to the project including Yard House, Arhaus home furnishings, Orvis, Athleta, Paper Source and Anthroplogie.
$1.8 billion in annual revenue
• Over 2.5 billion square feet under
management • Over 12,000 professionals
AT A GLANCE | Prospect Park sells; renamed Avalon •
Foreclosed luxury retail and mixeduse development on 100-acres. North American Properties purchased property for $22.8 million with plans to downsize the development from 850,000 SF of retail to about 550,000 SF.
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
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 1,777-52,875 SF Lease Lee Evans / Scott O’Halloran / Deming Fish
200 WINDWARD FOREST 3,710 SF Lease Lee Evans / Scott O’Halloran / Deming Fish
LAKE @ NORTHPOINT 2,000-15,623 SF Lease Lee Evans / Scott O’Halloran / Deming Fish
KINGS LANDING OFFICE CTR. 1,775-24,881SF Lease Will Tyler / Deming Fish
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 520 offices throughout 62 countries worldwide.
Published on Sep 12, 2012