Atlanta’s North Fulton Office Market – 4th Quarter Report
Here are the highlights for Atlanta’s North Fulton Office Market’s 4th Quarter Report written by our Research Department here at Colliers International.
For the first time since 2002, North Fulton saw more move-outs than move-ins in the year. The submarket finished the fourth quarter with negative absorption totaling (106,706) SF; year-to-date absorption ended up at (289,515) SF.
Available sublease space in North Fulton is up 24% since the end of 2008. Over 107,000 SF of new sublease availabilities were added in 2009. The largest sublease availability is RBS Lynk’s 148,229 SF space at Oak View III in Sanctuary Park.
North Fulton is expected to have another slow year in 2010, however, leasing activity should be a bit stronger. There is no new development going on, so any positive absorption will cause a drop in vacancy.
In the News
Prospect Park in bankruptcy: Alpharetta’s newest development, Prospect Park, is now in limbo following a recent announcement of the developer filing Chapter 11 on the project. The $745 million luxury mixed-use development has yet to get off the ground because of the distressed economy. With rising retail vacancies plaguing the Atlanta market, loan defaults and liabilities between $50 and $100 million, bankruptcy protection was inevitable. It has been reported Thomas Enterprises may try to sell the project going forward.
Royal Philips moves from Central Perimeter to North Fulton: Philips Electronics recently made the move from its office space of 184,000 SF in the Central Perimeter submarket, relocating to 116,000 SF in the North Fulton submarket at One Deerfield Centre. The company scouted potential deals for months but ultimately decided the North Fulton office was a better suited location for mixing product sales with technical support. Philips occupied its new office space in October.
Battery companies move to Roswell building: Two battery companies have relocated from Alpharetta to Roswell. GS Yuasa Lithium Power and GS Batteries USA will be leasing 40,000 SF at Northmeadow Office Park, moving out of 1000 Mansell Exchange. The move represents an expansion of space for the companies.