Page 1

Q3 2011 | NORTHWEST ATLANTA

ATLANTA

SUBMARKET REPORT

TRENDS & HIGHLIGHTS NEW SUPPLY, ABSORPTION AND VACANCY RATES 18%

40,000

17%

20,000

16%

Square Feet

60,000

15%

0

(20,000)

3Q10

4Q10

1Q11

2Q11

3Q11

13%

(60,000)

12% Deliveries

27,342,487

Vacancy Rate

17.4%

YTD Net Absorption

59,442

YTD Deliveries

0

Under Construction

0

14%

(40,000)

Absorption

Total SF

Avg. Class A Rate

$21.36

Vacancy

Source: CoStar Property, Colliers Research

MARKET INDICATORS Projected

Q3 2011 VACANCY

NET ABSORPTION

CONSTRUCTION

UPDATE Recent Transactions in the Market

Q4 2011

SALES ACTIVITY

RENTAL RATE

PROPERTY ADDRESS

SALE PRICE

SIZE SF

PRICE / SF

BUYER

Riverwood 100

$81,500,000

502,527

$162.18

Highwoods Properties

4111 Northside Pkwy.-IBM

$53,600,000

825,000

$64.97

Atlanta Public Schools

Dupree @ Powers Ferry

$20,450,000

137,818

$148.38

Piedmont Office Realty

1090,1130 Northchase Pky.

$7,700,000

165,205

$46.61

Crossgate Partners

Cumberland

LEASING ACTIVITY

www.colliers.com/atlanta

TENANT

PROPERTY ADDRESS

SIZE SF

TYPE

Piedmont Healthcare

Paces West

190,000

Class A Renewal & Expansion

Graphic Packaging

RiverEdge Summit

110,000

Class A Lease

Focus Receivables

1130 Northchase Pky.

35,767

Class B Renewal

Hewitt Associates

Riverwood 100

24,942

Class A Lease

The Cumberland office market is on track to finish the year with more space filled than vacated. The year-to-date absorption for the submarket totals 59,422 SF following third quarter’s positive activity. The amount is expectably modest considering; but it will be the first positive year since 2007 for the submarket if conditions hold steady through the end of fourth quarter.

Cumberland’s average rental rate showed a slight uptick in third quarter, though this is likely to be short-lived. Vacant space in the submarket remains high and landlords will continue competing for prospective tenants.

Leasing activity remains somewhat subdued in the area. There have been a couple of large deals take place, but most have been renewals of existing spaces; only a few expansions.


MARKET REPORT | Q3 2011 | ATLANTA OFFICE | NORTHWEST ATLANTA

SKYLINE REVIEW Space Available Direct Sublet 35

Source: CoStar Property

30

Floors

25 20 15 10 5

Riverwood 100

Overlook III

200 Galleria

400 Galleria

Cumberland Center II

502,527 SF

438,709 SF

438,273 SF

440,000 SF

413,247 SF

TYPICAL FLOOR SIZE

21,889 SF

26,000 SF

22,000 SF

23,157 SF

24,308 SF

% LEASED

92.5%

75.3%

72.5%

82%

96.2%

7,247 SF

20,205 SF

23,094 SF

24,586 SF

48,491 SF

$$22.00-$25.00

$22.50-$27.00

$16.00-$21.00

$24.50

$22.50

1

2

3

4

5

One Paces West

Two Paces West

Platinum Tower

3200 Wildwood Plaza

RBA

274,948 SF

371,523 SF

312,591 SF

706,307 SF

TYPICAL FLOOR SIZE

22,000 SF

20,640 SF

21,000 SF

43,362 SF

% LEASED

80%

82.3%

91.6%

77.5%

34,253 SF

20,734 SF

12,487 SF

69,425 SF

$20.50-$22.00

$20.50-$22.00

$22.50

$19.75-$23.00

6

7

8

9

BUILDING RBA

LARGEST SPACE AVAIL. RENTAL RATE PER SF (Gross)

35 30

Floors

25 20 15 10 5

BUILDING

LARGEST SPACE AVAIL. RENTAL RATE PER SF (Gross)

P. 2

| COLLIERS INTERNATIONAL


MARKET REPORT | Q3 2011 | ATLANTA OFFICE | NORTHWEST ATLANTA

9 5

4

8

3

4 2 3

2 1 5

1

1

4 2

6 7

6

AERIAL LEGEND

PLANNED CONSTRUCTION

Buildings by Numbers (see opposite page)

1

RIVERWOOD PROJECT

2

555 GALLERIA

New Construction

POINTS OF INTEREST Chattahoochee Recreation Center

1 Cumberland Mall

4

2 Galleria Mall

5 Dobbins Air Base

3

Cobb Energy Arts Centre

$300M project 530,000 SF Class A office 90,000 SF retail 400 residential units 200 room hotel Developer: Seven Oaks Co.

250,000-300,000 SF Class A Build-To-Suit Construction contigent upon leasing Developer: Childress Klein

6 Vinings Area

COLLIERS INTERNATIONAL |

P. 3


MARKET REPORT | Q3 2011 | ATLANTA OFFICE | NORTHWEST ATLANTA

IN THE NEWS

512 offices in 61 countries on 6 continents

• New

Home Depot facility bringing 700 jobs to Cobb: In a move to help boost its online business and consolidate its customer support services, Home Depot has chosen Cobb County for a new support call center which will bring 700 jobs to the county. The home improvement company will open the new facility in the Chastain Meadows office park about 12 miles north of its corporate headquarters. Home Depot was given multiple incentives by the county and state economic development authorities to locate the call center in Cobb County. Operations are expected to begin by late 2012. Packaging moving to RiverEdge Summit: Graphic Packaging is making the intra-submarket jump across the Chattahoochee River to new office space at RiverEdge Summit. The company, which is the largest U.S. producer of folding cartons, will lease about 110,000 SF in the building. The move will include multiple consolidations from older buildings in the submarket; and will likely occur in early 2012. In addition to the new office location, construction of a 20,000 SF research and development facility for the company will also take place.

United States: 125 Canada: 38 Latin America: 18 Asia Pacific: 214 EMEA: 117

• Graphic

• Highwoods

buys Riverwood 100: Highwoods Properties has purchased the 502,527 SF Riverwood 100 tower for $81.5 million. The publicly-traded REIT had been in negotiations with former owner GE Asset Management over the summer and finally closed on the transaction in September.

$1.5 billion in annual revenue

• Over 2.2 billion square feet under

management • Over 13,000 professionals

UNITED STATES: KENNESAW | MARIETTA | CHEROKEE CO. Office Market Stats

80,000

18% 17%

Square Feet

60,000

16% 15%

40,000

Total SF

8,418,968

Vacancy Rate

16.5%

YTD Net Absorption

58,876

14% 20,000

13% 12%

0 3Q10

4Q10

1Q11

2Q11

3Q11

(20,000)

11% 10%

Absorption

Deliveries

YTD Deliveries

0

Under Construction

16,150

Avg. RentalRate

$16.04

Vacancy

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

Source: CoStar Property, Colliers Research

COLLIERS INTERNATIONAL | ATLANTA OFFICE | NORTHWEST ATLANTA LISTINGS

COLLIERS INTERNATIONAL ATLANTA OFFICE SPECIALISTS: Bob Allen

Bob Mathews

Lee Evans

Craig Mendel

Deming Fish

Scott O’Halloran

Huston Green

Hugh Pafford

Tim Huffman

Jodi Selvey

Russ Jobson

Fred Sheats

Nicole Kamen

Pete Shelton

Jeff Kelley

Hayes Swann

Brett Kingman

Andrew Walker

Drew Levine

Bob Ward

Michael Lipton

JONQUIL VILLAGE

2700 CUMBERLAND

GALLERIA 600

10,376-20,752 SF Lease Andrew Walker

34,812 SF Sublease Andrew Walker / Fred Sheats / Bob Mathews

14,200 SF Sublease Pete Shelton

TWO BARRETT LAKES 9,317 SF Sublease Jeff Kelley / Pete Shelton / Bob Ward

www.colliers.com/atlanta

NEWMARKET BUSINESS PROF. BLDGS. @ PARK WOODSTOCK 1,060-4,653 SF Lease Bldgs. 960 & 970 each 19,311 SF Sale Lee Evans / Scott O’Halloran Andrew Walker / Craig Mendel

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.

3Q 2011 | Atlanta Northwest Office | Market Report  

Colliers International | Atlanta 3Q 2011 report for Northwest Atlanta office market

Read more
Read more
Similar to
Popular now
Just for you