3q 2010 | atlanta central perimeter office | market report
DESCRIPTION
Colliers International | Atlanta 3Q 2010 report for the Central Perimeter office marketTRANSCRIPT
NEW SUPPLY, ABSORPTION AND VACANCY RATES
SUBMARKET REPORTATLANTA
www.colliers.com/atlanta
MARKET INDICATORS
Q32010
NEXTQTR
VACANCY
NET ABSORPTION
CONSTRUCTION — —
RENTAL RATE
Q3 2010 | CENTRAL PERIMETER
Centr
al
Peri
mete
r
TRENDS & HIGHLIGHTS
(400,000)
(300,000)
(200,000)
(100,000)
0
100,000
200,000
3Q09 4Q09 1Q10 2Q10 3Q10
10%
12%
14%
16%
18%
20%
22%
Absorption Deliveries Vacancy
Total SF 28,303,498
Vacancy Rate 20.9%
YTD Net Absorption 72,860
YTD Deliveries 0
Under Construction 0
Avg. Class A Rate $22.22Source: CoStar Property
UPDATE Recent Transactions in the Market
SALES ACTIVITY
PROPERTY ADDRESS SALE PRICE SIZE SF PRICE / SF BUYER
9000 Central Park $31,955,979 204,632 $156.16 Cox Enterprises41, 47, 53 Perimeter Ctr. E. $14,864,999 279,788 $53.13 Atlanta Property Group1200 Ashwood Pky. $5,500,000 (forc.) 180,840 $30.41 Lennar Partners5424 Glenridge Dr. $4,250,000 15,000 $283.33 Shoffl and Holdings LLC
LEASING ACTIVITY
TENANT PROPERTY ADDRESS SIZE SF TYPE
Global Payments 10 Glenlake North 168,317 Class A Renewal
Munich American Reass. 56 Perimeter Center 63,500 Class A Renewal
McCalla Raymer Concourse VI 28,718 Class A Lease
Enterprise Leasing Palisades Offi ce Park 27,769 Class A Renewal
• Class B & C move-outs were the reason for the negative absorption for Central Perimeter in the third quarter. Despite this, the submarket still shows a net occupancy increase for the year thanks mostly to positive Class A absorption .
• The submarket’s largest move-in of third quarter was AutoTrader moving into 102,070 SF at 3003 Perimeter Summit. The auto buying/selling information company relocated from Class B property.
• Move-outs in fourth quarter are expected to erase Central Perimeter’s positive absorption in 2010. A number of relocations will hit the submarket in the coming months, wiping away occupancy gains from the beginning of the year. Offi ce leasing remains active, however, and will limit the total loss.
BUILDING Concourse VI Concourse V Three Ravinia Glenridge Highlands II 2002 Summit Blvd.
RBA 697,400 SF 687,107 SF 813,145 SF 415,000 SF 390,139 SF
% LEASED 85.8% 96.4% 81% 63.6% 91.9%
LARGESTSPACE AVAIL. 50,000 SF 76,491 SF 52,880 SF 192,518 SF 8,274 SF
RENTAL RATEPER SF (Gross) $23.50-$24.50 $24.50 $22.09-$24.09 $22.50-$26.50 $25.00-$26.75
1 2 3 4 5
SKYLINE REVIEW
35
30
25
20
15
10
5
Space Available Direct Sublet
Flo
ors
BUILDING 7000 Central Park 400 Northpark One Ravinia Two Ravinia 64 Perimeter Ctr. E
RBA 415,324 SF 586,256 SF 386,239 SF 437,826 SF 381,432 SF
% LEASED 86% 74.9% 74% 83.5% 10.6%
LARGESTSPACE AVAIL. 18,340 SF 131,509 SF 47,204 SF 24,199 SF 363,630 SF
RENTAL RATEPER SF (Gross) $23.50-$24.50 $25.00-$25.50 $22.00-$23.00 $21.50-$23.50 $20.00-$21.50
6 7 8 9 10
Source: CoStar Property
35
30
25
20
15
10
5
Flo
ors
P. 2 | COLLIERS INTERNATIONAL
MARKET REPORT | Q3 2010 | ATLANTA OFFICE | CENTRAL PERIMETER
1
2
4
5
6
3
3
1
2
4
1 2
3
5
6
7
8 9
4
10
Buildings by Number(see opposite page)
MARTA Rail Line
New Construction
AERIAL LEGEND
POINTS OF INTEREST
1
2
3
4
5
6
Perimeter Mall
Northside Hospital
St. Joseph’s
Hospital
Scottish Rite
Perimeter Place
Marist High School
PLANNED CONSTRUCTION
240 PERIMETER CTR. PKWY.600,000 SFPlanning StageDeveloper: Barry Real Estate
4004 PERIMETER SUMMIT400,000 SFPlanning StageDeveloper: Hines Properties
ABERNATHY 400350,000 SFPlanning StageDelivering TBDDeveloper: Ackerman/Russell
TWO NORTH PLACE230,000 SFPlanning StageDelivering TBDDeveloper: Crocker Partners
2
3
4
1
MARKET REPORT | Q3 2010 | ATLANTA OFFICE | CENTRAL PERIMETER
COLLIERS INTERNATIONAL | P. 3
UNITED STATES:
Colliers International1349 West Peachtree StreetSuite 1100Atlanta, Georgia, 30309TEL +1 404 888 9000FAX +1 404 870 2845
COLLIERS INTERNATIONAL
ATLANTA OFFICE SPECIALISTS:
480 offi ces in 61 countries on 6 continentsUnited States: 135Canada: 39Latin America: 17Asia Pacifi c: 194EMEA: 95
• $2 billion in annual revenue
• Over 2 billion square feet under management
• Over 15,000 professionals
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 fi rm of Colliers International Property Consultants, an affi liation of independent companies with over 480 offi ces throughout more than 61 countries worldwide.
www.colliers.com/atlanta
Accelerating success.
IN THE NEWS
• Revolving deals for Central Perimeter: Central Perimeter has seen its share of large deals this year, some of which have resulted and will result in net occupancy gains for the submarket. Most of the offi ce leasing occurring this year, however, is from existing companies in the area. These deals may or may not produce positive absorption depending on whether the company is contracting or expanding its space usage. The bright spot is that companies which locate to Central Perimeter tend to stay in the submarket because of area amenities and transportation access. The negative aspect is that these intra-market moves do little to the vacant space available in the submarket.
• Access Insurance inks lease at Three Ravinia: One of the largest deals this year was recently signed at Three Ravinia. Access Insurance Holdings will be leasing 80,000 SF in the 31-story offi ce tower. The company plans to relocate from its current offi ces in Brookhaven, moving into Three Ravinia in October. The transaction will boost occupancy in the building from 78% to 88%. It is a big win for Colonial Properties Trust which recently became sole owner of the property in November of last year.
• Wood Partners buys 2.5-acre tract for apartments in Sandy Springs: Wood Partners recently purchased a 2.5-acre site and plans to develop a 205,000 SF multi-family project, including 168-units and 20,000 SF of retail. The project will be located at the intersection of I-285 and Glenridge Drive, close to “Pill Hill”—a cluster of hospitals and medical offi ce—and should be completed in a year.
Accelerating success.
AT A GLANCE | Hammond Half-Diamond Interchange
COLLIERS INTERNATIONAL | ATLANTA OFFICE | CENTRAL PERIMETER LISTINGS
• Half-diamond interchange: Northbound entrance to GA 400 from Hammond Drive, Southbound exit from GA 400 to Hammond Drive.
• Expected to relieve congestion at GA 400 and I-285.
• Hammond Drive bridge will be replaced and raised higher to make room for future expansion of GA 400 lanes.
• Project will cost an estimated $18 million to complete; completion date scheduled for Fall 2011.
219
PERIMETER CTR.
4,942-21,947 SFSublease
Bob Mathews / Fred Sheats
8215 ROSWELL RD.
Bldgs. 200, 300,600, 1000, 1100
10,000-15,000 SFSale
Hugh Paff ord /Jodi Selvey
1455 LINCOLN PKWY.
4,392 SF SubleaseBrett Kingman /
Russ Jobson
5883 GLENRIDGE DR.
16,104 SF SubleaseNeal Baker
5620 GLENRIDGE
84,500 SF Lease/SaleHugh Paff ord
Bob Allen Craig Mendel
Neal Baker Scott O’Halloran
Lee Evans Hugh Paff ord
Huston Green Jodi Selvey
Russ Jobson Fred Sheats
Nicole Kamen Pete Shelton
Jeff Kelley Hayes Swann
Brett Kingman Andrew Walker
Michael Lipton Bob Ward
Bob Mathews
MARKET REPORT | Q3 2010 | ATLANTA OFFICE | CENTRAL PERIMETER