Third Quarter 2010 Atlanta Office Market Update

Courtesy of www.cushmanwakefield.com

Office Highlights:

• Atlanta’s office market continued to gradually rebound from recession in third quarter 2010.
• 6.6 msf of leasing activity contrasted against 123,650 sf of negative overall absorption year-to-date.
• Nearly 15.0% of leasing activity reported year-to-date was focused in buildings completed within last five years.
• Overall vacancy remained elevated at 21.5%, even as subleases decreased 20% since year-end 2009.
• Roughly 575,000 sf were under construction on a build-to-suit basis at third quarter’s end.
• Overall asking rents decreased for a second straight quarter.
• Year-to-date investment activity totaled nearly 1.3 msf while user sales activity exceeded 400,000 sf.

Third Quarter 2010 Atlanta Industrial Market Update

Courtesy of www.cushmanwakefield.com

Industrial Highlights:

• Atlanta’s industrial market continued to rebound from recession with its third straight quarter of net occupancy gains.
• Nearly 10.9 msf leased year-to-date, with activity dominated by big-box corporate users.
• Nearly 1.8 msf was under construction on a build-to-suit basis at third quarter’s end.
• Overall vacancy remained elevated despite a lack of speculative development activity.
• Roughly 5.1 msf traded year-to-date, as investors focused on core assets.
• Excess vacancy continued to exert downward pressure on effective rents as tenant concessions remained prevalent for users in the market.