Atlanta’s Central Perimeter Office Market – 4th Quarter Report
Here are the highlights for Atlanta’s Central Perimeter Office Market’s 4th Quarter Report written by our Research Department here at Colliers International.
Highlights
Central Perimeter was hit hardest by move-outs in 2009. Over 780,000 SF of office space came back to the market thanks to large exits by companies such as Macy’s, Philips and Verizon.
Since the end of second quarter 2008, office vacancy has risen 5% in Central Perimeter. This amounts to almost 1.5 million square feet added over that period of time. This is the largest increase of vacant space compared to Atlanta’s other office submarkets.
The submarket has most likely hit rock bottom. Going forward, there are a number of significant deals heading to the submarket. Cox Enterprises is a big part of the anticipated growth. The Atlanta Journal-Constitution, AutoTrader.com and Cox itself have all signed large leases in Central Perimeter recently.
In the News
Cox announces HQ expansion: Construction of a 600,000 SF office expansion to Cox Enterprises’ Central Perimeter campus will begin sometime this year. The building will be the largest to go under construction following the deliveries of Atlanta’s newest office towers in Buckhead and Midtown. Cousins Properties has been tapped to develop the building. Completion of the project is expected in 2012.
AutoTrader to lease new headquarters: A letter of intent has been signed by AutoTrader.com to lease between 300,000-350,000 SF at Perimeter Summit. Once completed, the deal will be the largest for Atlanta this year. The company had been scouting for roughly 250,000 SF of office space in Central Perimeter in order to consolidate all their employees into one building. The 3003 Perimeter Summit building will house AutoTrader’s new headquarters.
Hammond Interchange sparks development: A new interchange at Hammond Drive and Georgia 400 is the centerpiece of a $700 million economic development plan envisioned for Central Perimeter. The new half-diamond interchange will feature new entrance and exit ramps and a 9-lane bridge, all intended to relieve traffic congestion. Mixed-used developments planned around the new corridor will include 400,000 SF of office, 1,600 hotel rooms, 4,000 residential units and retail space. Expected completion of the interchange will be in 2011.
