Christie Carden, Sim Doughtie & Fred Sheats
The first quarter of 2011 brought little change for the office real estate market in Atlanta, a pattern which Fred Sheats, senior vice president of Colliers International's Atlanta office, predicts will continue throughout the year.
believes part of the reason Atlanta saw negative absorption in the first quarter is because businesses are trying to do more with less office space.
cites are people sharing offices, workers who spend a lot of time out of the office, moving from offices to cubicles, and the idea of "hoteling," where workers dock into a portal somewhere to do work and then leave.
"The Atlanta office market
is a little more than 200 million square feet of office space," he
"From a supply standpoint, we've got a good bit of product out there.
There is more than 39 million vacant square feet in the market.
says there were no new developments announced in the first quarter, and he
believes that there probably won't be for at least a couple of years due to the large amount of office space currently available.
At the end of 2010, approximately 150,000 square feet of space was under construction.
believes that in time the submarket along Georgia 400 will emerge as one of the leading high-tech office areas in the country.
"There's a lot of stuff going on from a macro standpoint with the economy and job growth, but there's also technology and demographic pressure," Sheats
"So, all of that is impacting real estate.
says this is due to lack of sufficient space for bigger tenants and some of the properties being located off the beaten path.
doesn't foresee much shift in terms of leading submarkets.
predicts that Atlanta will see a positive absorption in 2011, similar to 2010, which had three quarters were that positive.
"I see 2011 being a mirror image of 2010," Sheats