1st Quarter 2010 – Midtown Office Market Report
Midtown at a Glance
• Midtown was one of only three office submarkets in Atlanta to experience positive absorption in the first quarter. In the past year, Midtown’s quarterly office occupancy has fluctuated only modestly.
• The delivery of 1075 Peachtree increased Midtown’s vacancy rate by 2.9% from year-end 2009. The 752,710 SF office tower is currently 16% leased.
• The submarket’s office leasing activity has shown mixed signals as of late. A number of new deals continue and existing companies are renewing their Midtown offices; however, new office towers in Buckhead are beginning to pull some tenants away from Midtown. The most recent company to be lulled away is Thompson Hine.
In the News:
• Developer plans $350M luxury hotel near High Museum: The 2.3 acre site across from the High Museum is now being considered for a $350 million luxury hotel. John Wieland owns the property but is currently under contract to sell it to Alvin B. James, a fellow Atlanta developer. Previous plans for the property included a 23-story, $325 million, 92- unit luxury condo tower. The new developer is planning a 250-room five-star hotel with possible restaurant space. The sale of the property is expected to close this June.
• Lender takes back Campanile building: Wells Fargo has taken back the 444,312 SF Campanile office building at the corner of Peachtree and 14th Streets. Transwestern Investment purchased the former BellSouth headquarters back in 2007 for $97.7 million. When the borrower became unable to pay on the loan, foreclosure proceedings began. The property was scheduled for a March 2, 2010 foreclosure; however, in order to avoid the lender coming after further financial obligations, Transwestern agreed to a deed in lieu of foreclosure to Wells Fargo.
• Trump Towers site foreclosed: Donald Trump’s venture into Atlanta will have to wait as the 2.5 acre site proposed for his Trump Towers project has been foreclosed upon by GE Capital. Plans for the project included two condo towers and/or a possible hotel.
MIDTOWN STATS 
Total SF: 19,407,113
Vacancy Rate: 21.6%
YTD Net Absorption: 47,165
YTD Deliveries: 752,710
Under Construction: 0
Avg. Class A Rate: $23.45
SALES ACTIVITY
Campanile Plaza sold for $98,350,000 or $221.35/RSF
1315 Peachtree St. (‘09) sold for $6,300,000 or $120/RSF
1094 Hemphill Av. (‘09) sold for $2,483,828 or $331.18/RSF
LEASING ACTIVITY
22Squared leased 49,582 RSF at The Proscenium (Colliers Client)
WebMD leased 41,112 RSF at Colony Square (Colliers Client)
Ballard Spahr leased 28,374 RSF at 999 Peachtree
