Académique Documents
Professionnel Documents
Culture Documents
Vacancy
21.3%
Net Absorption
198,508 SF
Deliveries
0 SF
Asking Rent
$18.60 FS
ATLANTA OFFICE
Economic Indicators
Q3 11
Atlanta Employment Atlanta Unemployment U.S. Unemployment U.S. CCI 2.24M 10.4% 9.1% 49.93
Q3 10
2.27M 10.4% 9.6% 50.94
Net Absorption
4,000 3,000
Square Feet ('000s)
2,000 1,000 0 -1,000 -2,000 -3,000 -4,000 2006 2007 2008 2009 2010 2011
Vacancy Rate
22% 20% 18% 16% 14% 2006
Historical Average
Forecast
Georgia will add only 3,200 jobs in 2011 while Metro Atlanta will lose 2,300 jobs. In 2012, Georgia and Metro Atlanta will add 46,500 and 32,600 jobs, respectively. Atlanta will see only modest net absorption gains in the coming quarters, most of which will still be concentrated in Class A buildings. Construction levels will remain low, with no new speculative ofce buildings breaking ground in 2011. While heavy concessions are starting to burn off, asking rates will tread along the bottom and not see any signicant improvements until occupancy levels rise considerably.
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INVENTORY
Submarket
Downtown Midtown Buckhead Central Perimeter North Fulton Northeast Northlake Northwest South Atlanta West Atlanta 154 138 131 275 427 601 461 576 332 71 21,334,459 17,965,388 19,161,768 25,289,458 22,050,987 21,007,788 16,041,555 30,911,680 9,314,203 2,768,642 331,024 253,529 183,231 258,395 408,014 204,003 97,275 307,661 59,064 0 4,116,523 3,858,746 3,763,392 6,197,909 4,044,952 4,685,921 2,206,764 5,957,109 1,924,412 794,676 20.8% 22.9% 20.6% 25.5% 20.2% 23.3% 14.4% 20.3% 21.3% 28.7% (19,170) 29,864 388,022 (115,065) (155,833) 32,404 71,270 (26,653) (99,323) 92,992 (363,880) (141,662) 677,528 (414,559) 137,576 (106,076) 107,160 26,673 (98,106) 78,045 0 0 0 16,000 0 0 10,000 16,650 0 0 $17.82 $22.71 $23.33 $19.94 $16.85 $15.76 $17.00 $17.90 $16.52 $14.06 $18.93 $24.33 $24.55 $21.70 $19.30 $19.26 $19.61 $20.73 $20.69 N/A
TOTAL
Ofce asking rents converted to Full Service
SF
137,596 125,000 137,000 95,000 55,000 55,000
TRANSACTION TYPE
Renewal/Expansion Renewal/Expansion Renewal New New New
SUBMARKET
Buckhead Buckhead Northlake Midtown Central Perimeter Central Perimeter
Jamestown acquired the 2 million square foot City Hall East building in Midtown this quarter from the City of Atlanta for $27,000,000 ($15,400,000 was paid at closing). Originially home to Sears, Roebuck & Co., the historic building is being rebranded as Ponce City Market and undergoing extensive renovations as part of a mixed-use redevelopment project. Primerica signed a long-term lease agreement this quarter with Duke Realty for a 344,476 square foot build-to-suit facility in Legacy, Dukes 111-acre ofce park in Duluth, where they will be relocating from their current headquarters in 2013. The 600,000 square foot build-to-suit for Cox Enterprises currently under construction in Central Perimeter, which is not included in the inventory of speculative ofce buildings, is scheduled to deliver in 2012.
SF
2,000,000 502,527
484,000 622,301
SELLER/BUYER
City Of Atlanta/Jamestown Properties GE Asset Management/Highwoods Properties
Regent Partners/Parkway Properties Capmark Bank/Americas Capital Partners
PRICE
$27,000,000 $86,300,000
$167,300,000 $19,000,000
SUBMARKET
Midtown Northwest
Buckhead Downtown
Jonathan Gerrard
Research Analyst
171 17th Street NW Suite 1400 Atlanta, GA 30363 Tel: 404.682.3412 Fax: 404.888.4962 Email: jonathan.gerrard@cassidyturley.com
The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy. Copyright 2011 Cassidy Turley. All rights reserved.
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