slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
The State of the Atlanta Office Market Jim Bacchetta, VP Atlanta Division Manager PowerPoint Presentation
Download Presentation
The State of the Atlanta Office Market Jim Bacchetta, VP Atlanta Division Manager

Loading in 2 Seconds...

play fullscreen
1 / 12

The State of the Atlanta Office Market Jim Bacchetta, VP Atlanta Division Manager - PowerPoint PPT Presentation


  • 153 Views
  • Uploaded on

The State of the Atlanta Office Market Jim Bacchetta, VP Atlanta Division Manager. 2008 – 2010 The Dark Days of the Recession. In Atlanta’s Buckhead, Vacant Office T owers S et off Battle for Tenants.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'The State of the Atlanta Office Market Jim Bacchetta, VP Atlanta Division Manager' - hina


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

The State of the Atlanta Office Market

Jim Bacchetta, VP Atlanta Division Manager

slide2

2008 – 2010 The Dark Days of the Recession

In Atlanta’s Buckhead, Vacant Office Towers Set off Battle for Tenants.

“The owners of four new and largely vacant office towers are locked in a bruising battle for tenants”

“It’s an ugly time to be a landlord.”

“Landlords are in a tough spot because Buckhead’s prime office market has a 35.3% vacancy rate”

By Maura Webber Sadovi

The Wall Street Journal

‘Ridiculous Concessions’ asked for lease space in Buckhead

“There is fear and loathing in Buckhead.”

“Activity now is down two-thirds from what it was a year ago.”

By John Schaffner

Reporter Newspapers

slide3

2008 – 2010 The Dark Days of the Great Recession

Commercial Real Estate Glut in Atlanta

“Cousins took a $39 million write-down on its 25-story Terminus 200 building.”

“Bloodbath in Buckhead.”

Investor Village

Atlanta Awash in Empty Office Struggles to Recover From Binge

“Atlanta has a large hole to dig out of.”

By John Helyar & Steve Matthews

Bloomberg.com

slide4

Market Cycle Clock

Peaking phase

Falling phase

Rising phase

Bottoming phase

Where is Atlanta on the cycle clock?

Source: Jones Lang LaSalle – as of 9/30/12

slide5

Market Cycle Clock

Houston, San Francisco, Seattle

Peaking phase

Falling phase

Silicon Valley

Austin, San Francisco Peninsula

Dallas

Fort Lauderdale, Orlando, West Palm Beach

Rising phase

Bottoming phase

New York, Orange County, Richmond

Denver

Miami, United States

Baltimore, Detroit, New Jersey, Washington, DC

Boston, Pittsburgh

Indianapolis,

Los Angeles, Sacramento, San Diego

Atlanta, Minneapolis, Oakland-East Bay, Philadelphia, Portland, San Antonio

Jacksonville, Milwaukee, Phoenix, Westchester County

Source: JLL Q2 ‘13

Source: Jones Lang LaSalle – as of 9/30/12

Charlotte, Chicago, Cincinnati, Cleveland, Columbus, Fairfield County, Hampton Roads, Raleigh-Durham,St. Louis, Tampa

slide6

What attracts CEO’s and Entrepreneurs to Atlanta?

  • World’s largest airport, direct flights to 81 foreign cities
  • 70 foreign consulates, doubled since the Olympic Games
  • Convergence of three major interstates: I-75, I-85, I-20
  • Huge Industrial Sector: 600M SF, 4th largest industrial market
  • Abundant, well-educated, non-union workforce
  • Mild Climate
  • Affordable housing
  • Strong Fiber Infrastructure
slide7

2012-13 Atlanta Business Accolades

#3 Most Fortune 500 Headquarters

Source: FORTUNE Magazine

#1 City for Young Entrepreneurs

Source: Under 30 CEO Magazine

#1 City for Lowest Cost of Doing Business

Source: KPMG

#1 Best City for New College Grads

Source: Forbes

#1 Top US Airport for Business Travel Services and Connecting Flights

Source: Travel Leaders Group

#4 City for Doing Business

Source: CNBC

#2 Most Tech-Friendly Cities

Source: pcworld.com

#1 Most Innovative City

Source: Wall Street Journal

#1 Top Moving Destination

Source: Penske Truck Rental

#2 Metro with the Fastest 3G/4G Wireless Combo and Most Publically Available Wi-Fi.

Source: pcworld.com

#1 Best Place in the U.S. to do Business

Source: Entrepreneur Magazine

slide8

Atlanta Submarkets Analysis

North Fulton Alpharetta

Central Perimeter

Northeast Atlanta

Cumberland/

Galleria

Buckhead

Northlake

Midtown

Downtown

South Atlanta/

Airport

slide9

Atlanta Class A Commercial Office Submarket Dynamics

Spec Development? Not any time soon…

slide10

Absorption Analysis

When will vacant space be absorbed?

*Landlords are happy at 10% vacancy!

slide11

BUCKHEAD: Dwindling Development Sites

N

Three Alliance

Tishman Speyer – ~500K SF

3344 Peachtree

Parkway Properties

483K SF / 97% Leased

Terminus 200

Cousins/Morgan Stanley Prop.

566K SF / 88% Leased

Regent Partners

~500K SF

One Alliance Center

HIW

553K SF / 67% Leased

Terminus 100

Cousins Properties

655K SF / 99% Leased

BH LOOP

Two Alliance Center

HIW

492K SF / 92% Leased

Phipps Tower

Manulife

472K SF / 93% Leased

PEACHTREE RD

Coro

~250K SF

3630 Peachtree

Pope & Land/Duke Realty

436K SF / 75% Leased

GA 400

LENOX RD

Marta

Competitive Set

Development Sites