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Q2 2012 | NORTH FULTON

ATLANTA

SUBMARKET REPORT

TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 150,000

17%

100,000

16%

Square Feet

50,000

15%

0 (50,000)

2Q11

3Q11

4Q11

1Q12

2Q12

(100,000)

14% 13%

(150,000)

12%

(200,000) (250,000)

11%

(300,000)

10% Absorption

Deliveries

Total SF

27,763,693

Vacancy Rate

16%

YTD Net Absorption

(17,481)

YTD Deliveries

0

Under Construction

0

Avg. Class A Rate

Vacancy

$20.17

Source: CoStar Property, Colliers Research

MARKET INDICATORS Projected

Q2 2012

UPDATE Recent Transactions in the Market

Q3 2012

SALES ACTIVITY VACANCY PROPERTY ADDRESS

NET ABSORPTION CONSTRUCTION

RENTAL RATE

SALE PRICE

SIZE SF

PRICE / SF

BUYER

Parkside Terrace

$25,200,000

252,960

$99.62

Granite Properties

1360 Upper Hembree Rd.

$8,600,000

28,205

$304.91

Senior Housing Prop. Tr.

4800 North Point Pky.

$5,900,000

75,304

$78.35

Glenfield Capital

Roswell Summit

$4,851,000

126,371

$38.39

J4 Asset Management

North Fulton

LEASING ACTIVITY

www.colliers.com/atlanta

TENANT

PROPERTY ADDRESS

SIZE SF

TYPE

Red Prairie

3905 Brookside Pkwy.

80,314

Class B Renewal

Select Mgmt. Resources

Preston Ridge IV

40,347

Class A Renewal

Amdocs

Northwind VI

35,000

Class A Renewal & Expansion

Ingenico

3025 Windward Pkwy.

33,000

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

• Alpharetta’s

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

• Avalon

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

Bob Mathews

Will include a mix of office and forsale residential in addition to retail.

Jill Bomar

Craig Mendel

Lee Evans

Scott O’Halloran

First phase completion planned for October 2013.

Deming Fish

Hugh Pafford

Huston Green

Jodi Selvey

Tim Huffman

Fred Sheats

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

www.colliers.com/atlanta

UNITED STATES:

Russ Jobson

Pete Shelton

Jeff Kelley

Hayes Swann

Drew Lavine

Will Tyler

Michael Lipton

Andrew Walker

Nicole Littleton

Bob Ward

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.

Accelerating success.

2Q 2012 | Norh Fulton Atlanta Office | Market Report  
2Q 2012 | Norh Fulton Atlanta Office | Market Report  

Colliers International | Atlanta 2Q 2012 report for North Fulton Atlanta office market

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