| Atlanta Office Space Market - Downtown |
(Reported by)
Walter Fish
Sr. VP, Office Leasing
Cousins Properties
walterfish@cousinsproperties.com
404-407-1260
Looking for space? Walter has 25 years of CRE experience.
Largest Deal Done:
IBM - 500,000 SF
Total Deals Done:
Over 100
NAIOP #1 Producer 2010 |
Downtown Submarket Report - 4th Qtr 2011
Effective Rental Rates:
Class A office space: $26.00-$28.00 per SF
Class B office space: $15.00-$17.00 per SF
Class C office space: $12.00-$14.00 per SF
Concessions:
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Free Rent: ½ month to full month for each lease year, subject to other concessions within the lease. |
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Tenant Improvement Allowance: $15-$25 psf depending on lease term. |
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Moving Allowances: Included in Tenant Improvement Allowance. |
Absorption Rate: -64,268 SF in 4th Qtr. 2011*
Vacancy Rate: 17.95% in 4th Qtr. 2011*
* Source: CoStar Group, Inc.
New office projects in the area: 55 Allen Plaza, 180 Peachtree, 200 Peachtree, Ellis Street Hotel, Courtyard by Marriott, Ritz Carlton upgrades, and the lobby renovation at Georgia Pacific.
In conjunction with these projects has been Cousins’ revitalization of 191 Peachtree, rehabilitating the building’s lobby and street presence, bringing life and foot traffic back to a key stretch of Peachtree Street and the city center. These projects, particularly 191 Peachtree, have been the key driver behind several straight quarters of positive absorption for the Downtown Submarket.
Major office leases or announcements:
Mckenna, Long & Aldridge: 163,000 SF at SunTrust Plaza
Habitat for Humanity: 55,000 SF at 270 Peachtree
CoreNet Global: 19,000 SF at Georgia Pacific
Carlock Copeland: 52,000 square feet at 191 Peachtree
Commerce Club: 26,252 square feet at 191 Peachtree
Woodruff Foundation: 8,700 square feet 191 Peachtree
HKS: 16,000 square feet at 191 Peachtree
Other trends in the submarket that should be noted: The Peachtree Streetcar, which is slated to begin operating in early 2013, will provide connectivity for the core of downtown, improving accessibility to key business destinations and event venues. The system will also serve as the catalyst for additional transit oriented development within the loop.
Furthermore, there is significant ongoing capital investment from the City of Atlanta, Central Atlanta Progress, and the Downtown CID; including parks, traffic light technology, and various beautification projects.
Downtown offers the best value, the strongest connectivity (airport, MARTA, etc.) and the lowest crime rate among Atlanta’s in-town Submarkets. |
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More Tenants and More brokers! |
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86% of brokers say they still use and want Dorey's Guide (Print)! |
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| Downtown Premier Office Property Short-List* |
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Atlanta Center
250 Piedmont Avenue
RATE:
$10.00 (N)
MAX CONTIG:
362,300 SF |
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| Cassidy Turley |
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The Candler Building
127 Peachtree Street
RATE:
$16.00-17.50
MAX CONTIG:
20,000 SF |
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Joel & Granot
Real Estate, LLC |
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Centennial Tower
101 Marietta Street, NW
RATE:
$17.50-24.00 (G)
MAX CONTIG:
80,000 SF |
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| Jackson Oats Shaw Corporate Real Estate |
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| 114,837 SF |
Renewal |
Turner Broadcasting System, Inc. |
Tenant Rep: Dom Wyant, Jones Lang LaSalle |
01/2011 |
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Georgia-Pacific Center
133 Peachtree St NE
RATE:
$21.00-22.00/G
MAX CONTIG:
91,442 SF |
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| Jones Lang LaSalle |
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| 1,693 RSF |
New |
Atlanta Regional Council for Higher Education Inc |
Tenant Rep: John Winter & Ben Reeves (Cushman & Wakefield) |
03/2011 |
| 9,927 RSF |
New |
CoreNet Global Inc |
Tenant Rep: Mark Daughtry (USI Real Estate) |
03/2011 |
| 1,106 RSF |
New |
Townes Consulting & Psychological Services |
Tenant Rep: Nima Ghomghani (Grubb & Ellis) |
01/2011 |
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260 Peachtree Building
Completely Renovated
RATE:
$18.50-19.50 (G)
MAX CONTIG:
11,981 SF |
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| Richard Bowers & Company |
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270 Peachtree Building
Completely Renovated
RATE:
$18.00-19.00 (G)
MAX CONTIG:
41,772 SF |
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| Richard Bowers & Company |
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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. |
| Top 10 Largest Contiguous Blocks of Space in Downtown |
1. 362,300 SF ......... Atlanta Center
2. 278,716 SF ......... 55 Park Place Phase I
3. 203,068 SF ......... Bank of America Plaza
4. 160,879 SF ......... 100 Peachtree
5. 145,295 SF ......... 185 Spring St SW
6. 134,232 SF ......... Hurt Building
7. 102,045 SF ......... One Ninety One Peachtree Tower
8. 98,916 SF ......... Peachtree Center – North Tower
9. 91,442 SF ......... Georgia Pacific Center
10. 80,000 SF ......... Centennial Tower |
| Top 20 Sublease Blocks of Space in Downtown |
1. 31,344 SF ......... 55 Park Place Phase I (Thru Apr. 2014)
2. 30,370 SF ......... 55 Park Place Phase I (Thru Apr. 2014)
3. 30,337 SF ......... 55 Park Place Phase I (Thru Apr. 2014)
4. 29,786 SF ......... 55 Park Place Phase I (Thru Apr. 2014)
5. 28,868 SF ......... 55 Park Place Phase I (Thru Apr. 2014)
6. 27,745 SF ......... 55 Park Place Phase I (Thru Apr. 2014)
7. 22,877 SF ......... Bank of America Plaza (Thru Oct. 2012)
8. 22,861 SF ......... Bank of America Plaza (Thru May 2020)
9. 22,861 SF ......... Bank of America Plaza (Thru May 2020)
10. 19,599 SF ......... 100 Peachtree (Thru Aug. 2012)
11. 18,413 SF ......... Peachtree Center – Marquis One Tower (Thru July 2013)
12. 17,900 SF ......... Peachtree Center – Marquis Two Tower (Thru Jan. 2015)
13. 17,900 SF ......... Peachtree Center – Marquis Two Tower (Thru Jan. 2015)
14. 17,900 SF ......... Peachtree Center – Marquis Two Tower (Thru Jan. 2015)
15. 15,739 SF ......... Peachtree Center – Harris Tower (Nov. 2015)
16. 15,000 SF ......... Rosser International Building (Thru Aug. 2012)
17. 14,002 SF ......... 55 Park Place Phase I (Thru Apr. 2014)
18. 11,439 SF ......... Bank of America Plaza (Thru May 2020)
19. 10,000 SF ......... Bank of America Plaza (Negotiable)
20. 6,919 SF ......... Peachtree Center – Harris Tower (Nov. 2015)
Source: Dorey's Office Guide & CoStar Group, Inc. (January 2012).
Methodology: Only existing available spaces as reported to CoStar researchers are included. Proposed/Planned are excluded. Please send Updates/Corrections to CoStar and Dorey. |
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