| Atlanta Office Space Market |
(Reported by)
Frank Farrell LEED, AP
Senior Vice President
Ackerman & Co.
ffarrell@ackermanco.net
770-913-3948
Looking for space?
Frank is a 25-year veteran
CRE office leasing specialist
with thorough knowledge of the
Metro Atlanta market. |
Central Perimeter Submarket -1st Qtr 2011
Effective Rental Rates and Concessions
Class A office space: $20.00-$23.00 per SF
Class B office space: $16.00-$19.00 per SF
Class C office space: $14.00-$15.00 per SF
Concessions:
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Free Rent: One to one-and-half months free per lease year |
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Tenant Improvement Allowance: $16 - $25 per sq. ft. on five year term |
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Moving Allowance: I don't see too much in the way of moving allowances but many landlords allow tenant significant discretion in application of unused allowances. |
Absorption Rate: -59,643 SF Negative Absorption for 4th Quarter 2010*
Vacancy Rate: 21.86% Vacant*
* Source: CoStar Group, Inc.
New office projects in the area: Cox is proceeding with their new office building on Peachtree Dunwoody. Newell’s building at Three Glenlake, completed in mid 2008, is the last new construction completed in the submarket. Both projects were build-to-suits. Thankfully, no new construction will occur any time soon.
Major office leases or announcements: Newell Rubbermaid took 50,000 SF at 10 Glenlake North Tower and Global Payments took their sublease to a direct lease of 170,000 SF in the same building. These two deals by Highwoods kept 225,000 SF from coming back to market. Hammond Road Interchange is moving along. This should have a significant positive impact on traffic flows in the area. 
Other trends in the submarket that should be noted: Steady if slow activity. New and renewal prospects looking for short terms and willing to concede low tenant finish allowance to get it. This is especially true in the case of renewals. The soft Buckhead office market is putting some pressure on Central Perimeter, but it is too early to tell how much of an issue this will be. |
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| Central Perimeter Premier Office Property Short-List* |
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200 Ashford Center North
200 Ashford
Center North
RATE: $19.75 RSF
MAX CONTIG:
18,476 SF |
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| NAI Brannen Goddard |
|
|
 |
Ashford Green
4170 Ashford
Dunwoody Rd
RATE: $21.00
MAX CONTIG:
24,994 SF |
 |
| Manulife Financial |
|
|
| 8,500 SF |
Renewal |
Windstream Nuvox |
Tenant Rep: Rob Gage |
12/2010 |
 |
Ashford Perimeter
4151 Ashford
Dunwoody Rd
RATE: $19.50 (G)
MAX CONTIG:
115, 463SF |
 |
| Jones Lang LaSalle |
|
|
| 2,649 SF |
New |
Holcombe Financial |
Tenant Rep: Baxter Lusink,Cresa Partners |
8/2010 |
| 1,780 SF |
New |
Stout Atwood |
Tenant Rep: Rick Ferguson, Bull Realty |
8/2010 |
| 1,863 SF |
Expansion |
Metlife |
Tenant Rep: Tal Isbell Jones, Lang Lasalle |
10/2010 |
| 8,172 SF |
Expansion |
Noble Systems |
Tenant Rep: John Dolan, CBRE |
10/2010 |
| 28,283 SF |
Renewal |
Noble Systems |
Tenant Rep: John Dolan, CBRE |
10/2010 |
| 1,942 SF |
New |
Fogelman Management |
Tenant Rep: Dan Granot,
Joel &
Granot Real Estate Inc. |
10/2010 |
 |
900 Ashwood
900 Ashwood Parkway
RATE: $22.75
MAX CONTIG:
10,937 SF |
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| Transwestern |
|
|
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Atlanta REALTORS Center
Tommie Jackson Building
5784 Lake Forrest Dr.
RATE: Inquire
MAX CONTIG:
273 SF |
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| Grayson Properties, Inc. |
|
|
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Concourse Office Park
1,2,4,5 & 6
Concourse Parkway
RATE: $22.00-24 (G)
MAX CONTIG:
120,272 SF |
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| Cousins Properties Incorporated |
|
|
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Crown Pointe
1040 & 1050
Crown Pointe Parkway
RATE: $21.75-22 (G)
MAX CONTIG:
17,608 SF |
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| Transwestern |
|
|
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Eleven Seventeen Perimeter
1117 Perimeter
Center West
RATE: $18.50-19.50
MAX CONTIG:
17,373 SF |
 |
| Lincoln Property Company |
|
|
| 10,000 SF |
New |
Moore Wallace |
Tenant Rep: Jay Dowlen, CBRE |
12/2010 |
| 27,000 SF |
Renewal |
Sedwick |
Tenant Rep: Bill Kilborn, CBRE |
12/2010 |
| 5,000 SF |
Renewal |
Nestle |
Tenant Rep: Sam Hollis, Cushman |
10/2010 |
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Embassy Row Office Park
6600 Peachtree
Dunwoody Rd
RATE: $19.00-22 (G)
MAX CONTIG:
73,569 SF |
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| PM Realty Group |
|
|
| 1,619 SF |
Renewal |
Systel |
Tenant Rep: Judd Bass |
2/2011 |
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5871 Glenridge
5871 Glenridge Drive
RATE: $19.50
MAX CONTIG:
8,047 SF |
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| CB Richard Ellis |
|
|
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Hannover Park
100 & 200
Hannover Park Rd.
RATE: $15.00 (G)
MAX CONTIG:
31,980 SF |
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Richard Bowers
& Company |
|
|
| 4,119 SF |
Office |
Mary Hall
Freedom House |
Tenant Rep: Steve Barton, CBRE |
1/2011 |
 |
Northside Tower
6065 Roswell Road, N.E.
RATE: $17.50
MAX CONTIG:
14,046 SF |
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| Baker, Dennard & Goetz |
|
|
| 9,518 SF |
Renewal |
Signature Bank |
Tenant Rep: Sharon Altenbach, Ben Carter Properties |
9/2010 |
| 1,882 SF |
Expansion & Extension |
Reporter Newspapers |
Tenant Rep: Tom Wesley, The Wesley Company |
12/2010 |
| 1,843 SF |
Expansion & Extension |
Brain Tumor Foundation for Children |
Tenant Rep: Steven Katz, Newmark Knight Frank |
1/2011 |
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64 & 66 Perimeter Center East
64/66 Perimeter Center E.
RATE: $19.00-21 (G)
MAX CONTIG:
465,000 SF |
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| Barry Real Estate Companies |
|
|
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Perimeter Crossing at Lake Hearn
1200 Lake Hearn Drive
RATE: $19.00-19.50
MAX CONTIG:
68,283 SF |
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| Scott & Associates, Inc. |
|
|
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Perimeter Summit
1001, 2002 & 3003
Summit Boulevard
RATE: $25.00-26.75 (G)
MAX CONTIG:
24,677 SF |
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| CB Richard Ellis |
|
|
| 49,354 SF |
New |
Hughes Telematics |
Tenant Rep: Douglas Legg, Wm. Leonard Co. |
1/2010 |
| 390,910 SF |
New |
AutoTrader.com |
Tenant Rep: John Shlesinger, CB Richard Ellis |
1/2010 |
| 23,453 SF |
New |
HQ Global Workplaces LLC |
Tenant Rep: Ryan Hudson, CB Richard Ellis |
1/2010 |
| 111,813 SF |
New |
Zurich American Insurance |
Tenant Rep: Rick Nash, Equis |
7/2010 |
| 5,044 SF |
New |
Quest Group Search LLC |
Tenant Rep: Jack Strama, Sotheby's International |
9/2010 |
| 7,667 SF |
New |
NDS Americas |
Tenant Rep: Kevin Carroll, CB Richard Ellis |
10/2010 |
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The Pointe
400 and 500
Northridge Road
RATE: $19.50-21.50 (G)
MAX CONTIG:
23,187 SF |
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| Jones Lang LaSalle |
|
|
| 24,177 SF |
Expansion |
Prommis Solutions, LLC |
Tenant Rep: David Andes & Steve Farrar, Newburger Andes |
06/2010 |
| 24,177 SF |
Renewal |
Premova, Inc. |
Ann Lofye, CBRE |
06/2010 |
| 1,274 SF |
New |
Outforce, LLC |
Tenant Rep: Tal Isbell, Jones Lang Lasalle |
07/2010 |
| 1,651 SF |
Renewal |
Sapronov & Associates, P.C. |
Tenant Rep: Jud Bass, Bass Commercial |
09/2010 |
| 2,280 SF |
New |
Courtesy Finance, LLC |
Tenant Rep: Jim Matthews, Grubb & Ellis |
03/2010 |
| 2,509 SF |
New |
Capitol Indemnity Corporation |
Tenant Rep: Bob Johnson, Sperry Van Ness |
06/2010 |
| 5,890 SF |
New |
Veracity Payment Solutions |
Tenant Rep: Josh Hirsch, Studley |
09/2010 |
| 2,009 |
New |
Athena I.T. Services, Inc. |
Tenant Rep: Jud Bass, Bass Commerical |
10/2010 |
| 8,543 SF |
Renewal |
Crump Insurance Services, Inc. |
|
04/2010 |
| 46,012 SF |
New |
Kimberly-Clark Corporation |
Tenant Rep: Duncan Gibbs, Jones Lang LaSalle |
07/2010 |
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One & Two Premier Plaza
5605-5607 Glenridge Drive
RATE: $21.75 (G)
MAX CONTIG:
19,000 SF |
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| Ackerman & Co. |
|
|
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The Terraces
400 Perimeter Center Ter
115 Perimeter Center Pl
RATE: $22.50-23.50 (G)
MAX CONTIG:
215,000SF |
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| Barry Real Estate Companies |
|
|
| 3,262 SF |
New |
Juice Analytics |
Tenant Rep: Michael Tucker |
12/2010 |
| 10,464 SF |
New |
Preston Partnership |
Tenant Rep: Kevin Creel |
12/2010 |
| 5,441 SF |
New |
Teplis Travel |
Tenant Rep: Kevin Creel |
12/2010 |
| 21,458 SF |
New |
nuBridges |
Tenant Rep: Chad Koenig |
11/2010 |
| 2,327 SF |
New |
YER USA |
Tenant Rep: Tom Wesley |
10/2010 |
| *Central Perimeter’s Short-List represents featured properties inside Dorey’s Atlanta Office Guide, 1st Quarter 2011. |
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