| Atlanta Office Space Market - Norcross/Peachtree Corners |
(Reported by)
Adam Viente
Senior Vice President
Jones Lang LaSalle
adam.viente@am.jll.com
404-995-6551
Looking for space?
Adam has 12 years
of CRE experience. |
Norcross/Peachtree Corners Submarket -
4th Qtr 2011
Effective Rental Rates:
Class A office space: $17.00-$21.00 per SF
Class B office space: $10.00-$17.00 per SF
Class C office space: $4.00-$10.00 per SF
Concessions:
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Free Rent: 1 to 1.5 months per year of term. |
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Tenant Improvement Allowance: Differs based upon lease term and condition of the space but a range of $5 - $25 per sf is the current range. |
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Moving Allowances: Also differs based upon term and credit worthiness of the tenant but $0 - $5 per sf is the current range. |
Absorption Rate: 39,899 SF in 4th Qtr. 2011*
Vacancy Rate: 28.34% in 4th Qtr. 2011*
* Source: CoStar Group, Inc.
New office projects in the area: There have been no new office projects since The Davinci Building and Meridian II delivered in 2008. Currently, there are no new projects under construction in Peachtree Corners. Given the current state of the economy and the office market vacancy level, we do not expect to see any new office projects begin for at least 12 to 18 months.
Major office leases or announcements: New Prosys Corp. signed a new lease for 42,000 SF at 6575 The Corners Office Park that they moved into in September.
Pond & Company renewed their lease for 37,000 SF at Peachtree Ridge in July.
Fleetcor signed a new lease for 65,846 SF at Spalding Ridge in September and will move in February 2012.
Turngate Holdings signed a new lease for 11,500 SF at 3585 Engineering that they moved into in July.
Rosemont Realty closed on 6625 The Corners Parkway, 3585 Engineering Drive and 5707 Peachtree Parkway as part of a four building portfolio they purchased from LaSalle Investment Management in July. 
Other trends in the submarket that should be noted: Peachtree Corners residents will decide in an upcoming November election whether to incorporate, which would make it Gwinnett County’s 16th city. An area civic organization gave the idea the thumbs-down in 2005, but revitalized the initiative for incorporation after a failed attempt by the City of Norcross to annex much of Technology Park in 2009. Should Peachtree Corners incorporate, it will be interesting to see what sort of economic incentives and community improvements are generated by the newly created government that could possibly lure tenants. |
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| Norcross/Peachtree Corners
Premier Office Property Short-List* |
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Bay Colony
6611-6621 Bay Circle, Norcross, GA 30071
RATE:
$5.00-8.00 (MG)
MAX CONTIG:
19,983 SF |
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| Jackson Oats Shaw Corporate Real Estate |
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The Corners Office Park
6025-6625 The Corners Pkwy.
RATE:
$16.50-19.50 (G)
MAX CONTIG:
21,506 SF |
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| Jones Lang LaSalle Americas, Inc. |
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The Davinci Building
3715 Davinci Court
RATE:
Inquire
MAX CONTIG:
100% Occupied |
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| PM Realty Group |
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Waterford Centre
5555 Triangle Parkway
RATE:
$18.00 (G)
MAX CONTIG:
6,218 SF |
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| CB Richard Ellis |
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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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