Q3 2010 | NORTH FULTON
TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 50,000
YTD Net Absorption
(100,000) 14% (150,000)
Avg. Class A Rate
Source: CoStar Property
MARKET INDICATORS Q3 2010
UPDATE Recent Transactions in the Market SALES ACTIVITY
VACANCY NET ABSORPTION
PRICE / SF
1355 Windward Concourse
TA Realty Associates
11450 Technology Circle
Southeast Office Prtnrs.
2580 Westside Pkwy.
8995 Westside Pkwy.
AmTrust Financial Serv.
1150 Sanctuary Park
Class A Lease
4005 Windward Plaza
Class A Renewal
Cotton States Mutual
One Deerfield Centre
Class A Lease
Class A Lease
North Fulton experienced its sixth consecutive period of negative absorption in third quarter. Over this time, total occupancy has dropped by 645,000 square feet. In addition, vacancy has increased by 2.3%, the majority of which was from existing spaces given back by tenants.
North Fulton leads the Atlanta market in negative office absorption in the year with (190,301) SF.
Despite the submarket being one of the weakest this year in Atlanta’s office market, North Fulton saw a fair amount of leasing activity in the third quarter. The largest deals to occur were Coca-Cola signing for 158,229 SF at Sanctuary Park and E-Trade renewing for 132,250 SF at Windward Plaza.
Based on market activity and interest, it appears North Fulton will likely begin to stabilize in the next couple of quarters. With job growth expected to be minimal next year, recovery is still a ways off.
MARKET REPORT | Q3 2010 | ATLANTA OFFICE | NORTH FULTON
IN THE NEWS
480 offices in 61 countries on 6 continents
• Alpharetta a magnet for tech companies:
In the early 90’s, Alpharetta shifted its focus on infrastructure to include broadband cable in addition to water and sewer lines. As a result, the area became a magnet for tech company relocations with the speed of the broadband network providing a competitive advantage over other cities. Companies such as RedPrairie Corp., Verizon Wireless, Research in Motion, Royal Philips Electronics, Microsoft and Nortel Networks are all a part of a list of companies which have chosen Alpharetta in the past few years for their office locations. moving from Northridge location: As reported this spring by the Atlanta Business Chronicle, Coca-Cola was considering moving from its existing office space at Northridge Office Park in Central Perimeter to Sanctuary Park in North Fulton. It is now known the company has signed a lease for 130,000 SF of sublease space at Oak View III in Sanctuary Park and plans to relocate by the end of the year. This will likely be the largest deal signed in North Fulton in 2010.
United States: 135 Canada: 39 Latin America: 17 Asia Pacific: 194 EMEA: 95
II moving Alpharetta HQ to Buckhead: Kids II, which is currently located in 555 North Point Center, will relocate to 102,000 SF of office space in 2012 at Terminus 200 in Buckhead. The company is moving in order to take advantage of enticing concessions and also to give the company a more prestigious location to coincide with its growth. The Buckhead location will also provide Kids II with a prominent street-level showroom to show off its products. AT A GLANCE | Prospect Park •
$745 million luxury, mixed-use development on 85 acres in Alpharetta.
Project planned to include 156-room boutique hotel with 82 residences, 750,000 SF of retail space, two midrise office buildings totaling 250,000 SF and other amenities including a 75,000 SF multiplex cinema.
Project currently in bankruptcy protection with no definitive timetable for completion.
COLLIERS INTERNATIONAL | ATLANTA OFFICE | NORTH FULTON LISTINGS
$2 billion in annual revenue
• Over 2 billion square feet under
management • Over 15,000 professionals
UNITED STATES: Colliers International 1349 West Peachtree Street Suite 1100 Atlanta, Georgia, 30309 TEL +1 404 888 9000 FAX +1 404 870 2845
COLLIERS INTERNATIONAL ATLANTA OFFICE SPECIALISTS: Bob Allen
ROYAL CENTRE 1,723-51,634 SF Lease Lee Evans / Scott O’Halloran
100 WINDWARD FOREST 4,289-44,105 SF Lease Lee Evans / Scott O’Halloran
MORNINGSIDE FOREST 1,457-22,660 SF Lease Lee Evans / Scott O’Halloran
LAKE @ NORTHPOINT 1,501-15,623 SF Lease Lee Evans / Scott O’Halloran
BROOKSIDE TWO 7,728 SF Sublease Brett Kingman / Russ Jobson
BROOKSIDE 800 36,556 SF Sublease Craig Mendel / Michael Lipton
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 480 offices throughout more than 61 countries worldwide.