| Atlanta Office Space Market - Alpharetta |
(Reported by)
Bryan Heller
Principal/Senior Vice President
TPA Realty Services
bheller@tpares.com
770-232-6055
Looking for space? Bryan has 12 years of CRE experience.
Largest Deal:
184,000 SF
Deals Closed:
3,000,000 SF
Million Dollar
Club Member |
Alpharetta Submarket - 4th Qtr 2011
Effective Rental Rates:
Class A office space: $19.50-$22.00 per SF
Class B office space: $17.00-$18.50 per SF
Class C office space: $10.00-$15.00 per SF
Concessions:
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Free Rent: 1.5 months per year of term, outside the term. |
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Tenant Improvement Allowance: $15/sf to $20/sf, assuming a 5-year lease. |
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Moving Allowances: Negotiable, depending on credit, TI allowance, etc. |
Absorption Rate: 39,415 SF in 4th Qtr. 2011*
Vacancy Rate: 18.59% in 4th Qtr. 2011*
* Source: CoStar Group, Inc.
New office projects in the area: T5’s speculative 100,000 SF data center in Alpharetta is the only development currently under construction in the market. Speculative office development remains on-hold given the current market conditions; however, there has been chatter about a new building at Sanctuary Park. Some pre-leasing may be required on this project before it breaks ground.
Major office leases or announcements: Alpharetta/GA 400 has captured several notable lease transactions during the past year, including ThyssenKrupp IT Services’ North American headquarters relocation, which plans to employ 110 people, and CSI Laboratories 65,000 SF expansion, which plans to employ 150 people.
Notable leasing activity during the past six months includes:
Ace Insurance lease of 95,000 SF at Royal II Centre, vacating Mansell Overlook 500
Total Systems Services lease of 59,501 SF at 4501 Northpoint Parkway
GXS renewal on 54,000 SF Parkway 400
Siemens Corp. lease of 48,043 SF at 4800 Northpoint Parkway
W.W. Grainger renewal on 29,246 RSF at Brookside Concourse
Vision Airlines expansion to 25,000 SF at 3975 Johns Creek Court
Regus, PLC lease for 12,719 RSF at 11555 Medlock Bridge Road
PerkinElmer Health Sciences lease for 10,613 RSF at 11695 Johns Creek Parkway
Other trends in the submarket that should be noted: Other trends in the submarket that should be noted: North American Properties purchased Prospect Park, the 106-acre multi-use development west of GA 400 on Old Milton Parkway. The company cited “solid platinum demographics” and noted that Alpharetta, like Midtown, is a dense, fully built out market. This also describes many of the cities in the Alpharetta/GA 400 market, such as Roswell and Johns Creek, which in spite of their suburban locations, now offer excellent infill opportunities.
Improvements to infrastructure and access have played a key roll in this submarket’s resiliency at a time when job growth is non-existent. The North Fulton Chamber of Commerce is investing $600,000 in an Imageworks project to improve landscaping at the Haynes Bridge and Windward Parkway GA 400 interchanges. And in Johns Creek, both McGinnis Ferry Road and Hwy. 141 have been expanded to 4-lane divided roads, improving access to the area from GA 400 and I-85 dramatically. These vital improvements, along with an already strong amenity base, were key to Johns Creek landing 130,000 RSF in deals over the past six months. Regus PLC and PerkinElmer Health Sciences each recently committed to 10+ year leases.
From a broader perspective, the whole of the Alpharetta/GA 400 submarket enjoys robust data and power infrastructure and attractive office product in areas that are surrounded by abundant residential opportunities and top-rated schools that are attractive to growing entrepreneurs and Fortune 500 companies alike. |
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| Alpharetta Premier Office Property Short-List* |
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225 Curie Drive
225 Curie Drive
RATE:
$7.85 (MG)
MAX CONTIG:
11,665 SF |
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| EpiCity Real Estate Services |
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6455 & 6465
East Johns Crossing
RATE:
$21.00 (G)
MAX CONTIG:
40,000 SF |
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| Jones Lang LaSalle |
|
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| 15,000 SF |
New |
CorTrans |
Tenant Rep: Laura May/Bull Realty |
05/2011 |
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Georgia 400 Center
2300, 2325, 2400 Lakeview Parkway
RATE:
$21.75 (G)
MAX CONTIG:
21,480 SF |
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| Daniel Corporation |
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Holcomb Woods Business Park
1000 Holcomb Woods Pkwy
RATE:
$10.00 (MG)
MAX CONTIG:
46,138 SF |
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| PM Realty Group |
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Mansell Three
3600 Mansell Rd.
RATE:
$18.00 (G)
MAX CONTIG:
2,690 SF |
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| Scott & Associates, Inc. |
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| 3,000 SF |
Renewal |
CBI Constructors |
Tenant Rep: Erik Weiss/Studle |
N/A |
| 9,700 SF |
Renewal |
Liquidware |
Tenant Rep: Bo Keatley Windsor Realty |
05/2011 |
| 8,800 SF |
Renewal |
Aetna |
Tenant Rep: Tal Isbell/Jones Lang Lasalle |
04/2011 |
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100 Milton Park
30000 Mill Creek Avenue
RATE:
$22.00 (G)
MAX CONTIG:
8,288 SF |
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| Greenstone Properties, Inc. |
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The Park at Windward Concourse
1720 & 1725 Windward Concourse
RATE:
$18.50 (G)
MAX CONTIG:
25,600 SF |
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| Newmark Knight Frank |
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Parkside Terrace East & West
3780 & 3820 Mansell Road
RATE:
Inquire
MAX CONTIG:
39,136 |
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| Cassidy Turley |
|
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| 5,994 SF |
New |
Integrated Lifecycle Solutions |
Tenant Rep: Ralph Edwards, Glenridge Real Estate |
03/2011 |
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Preston Ridge I
3655 North Point Parkway
RATE:
$20.00 (G)
MAX CONTIG:
8,150 SF |
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| Transwestern |
|
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| 16,379 SF |
New |
Next Step Learning/Executrain |
Tenant Rep: Jodi Selvey, Colliers International |
10/2011 |
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Preston Ridge II
3480 Preston Ridge Road
RATE:
$19.50-20.50 (G)
MAX CONTIG:
8,181 SF |
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| Cassidy Turley |
|
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| 6,489 SF |
New |
Argo Group |
Tenant Rep: Abba Walles, Partners Atlanta |
08/2011 |
| 1,501 SF |
New |
Daekyo |
Tenant Rep: Charles Beard, CBRE |
05/2011 |
| 8,823 SF |
New |
Undisclosed |
Tenant Rep: Robert Poirier, Transwestern |
04/2011 |
| 4,387 SF |
New |
Alchemy3 |
Tenant Rep: Joe Grace, CRESA |
02/2011 |
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Sanctuary Park
Lakewood Parkway & Sanctuary Parkway
RATE:
$20.00-22.50
MAX CONTIG:
33,299 SF |
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| Jones Lang LaSalle |
|
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| 3,645 SF |
New |
Atlanta Fine Homes/ Sotheby’s |
Tenant Rep: Bob Francisco /Francisco & Associates |
09/2011 |
| 4,955 SF |
Renewal |
Rare Medium |
Tenant Rep: Dale Karrh/Newmark |
05/2011 |
| 21,352 SF |
Expansion |
Delta Dental Insurance |
Tenant Rep: Mitch Kahlert and Jimmy Sanders / Icon |
03/2011 |
| 42,497 SF |
N/A |
Transport |
Tenant Rep: Michelle Galvani / Wildmor Realty |
03/2011 |
| 8,766 SF |
New |
Technology Resource Solutions, Inc. |
Tenant Rep: Tom Tindall / CresaPartners |
03/2011 |
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Westside Center
10745 Westside Way
RATE:
$19.50 (FS)
MAX CONTIG:
10,470 SF |
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| Phoenix Atlanta Partners |
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Windward
Fairways I & II
Windward Plaza
RATE:
$19.50 (G)
MAX CONTIG:
112,550 SF |
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| Transwestern |
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| *Short-List represents featured properties inside Dorey’s Atlanta Office Guide. The Done Deals shown in this Short List are reported to us quarterly as a voluntary effort. It does not represent a comprehensive report of done deals for all Short List properties. |
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