Atlanta’s Northwest Office Market Report – 1st Quarter 2010
Atlanta’s Northwest Office Market at a Glance:
- Leasing activity in the Cumberland office market was mediocre for first quarter. There were a few sizeable renewal and direct deals to take place; however, the area ultimately ended the quarter with more tenants moving out of rather than into office space. Absorption was (68,658) SF.
- The Cumberland office vacancy rate has shown no significant movement over the past year, hovering around the 19% to 19.5% range during this time.
- Although office absorption in the Cumberland area is expected to be modest next quarter, recent news regarding GE establishing a new business division in the submarket will lead to new demand for space.
In the News:
GE bringing smart grid division to Atlanta: The Cumberland area will be home to GE’s newest business division focused on smart grid technology. The company announced it will be leasing about 100,000 SF of office at Parkwood Point with plans to move into the space as early as late summer. As part of the project, a $15 million Smart Grid Center of Excellence is also planned. This announcement establishes a new industry to the area and will position Atlanta as a leader in green energy. As both the Atlanta Business Chronicle and Atlanta Journal-Constitution have reported, the new division will bring approximately 400 high paying jobs to the area over the next three years. Growth in the smart grid industry could also lead to more companies seeking office space in the area. In addition, local companies already associated with smart grid technology could likely expand. The Cumberland market stands to benefit the most from the space demand. The new division expands upon GE’s presence in the Cumberland market. GE Energy is headquartered at Wildwood and the company currently leases over 450,000 SF in the area.
Cumberland / Galleria Stats: 
Total Square Footage: 24,188,718 RSF
Vacancy Rate: 19.4%
YTD Net Absorption: (68,658 RSF)
YTD Deliveries: 0
Under Construction: 0
Avg. Class A Rate: $20.57 / RSF
SALES ACTIVITY
2401 Lake Park Dr. sold for $3,250,000 or $36.60 / RSF
1580 Terrell Mill Rd. sold for $2,800,000 or $112.98 / RSF
Olde Ivey Condo 110 sold for $1,425,000 or $109.62 / RSF
LEASING ACTIVITY
NCDR LLC leased 39,869 RSF at Northchase Office Park
Balfour Beatty leased 19,006 RSF at 600 Galleria
Nations Builders Insurance leased 17,013 RSF at Overlook III
