Cushman & Wakefield released third quarter 2017 statistics today for the Atlanta office market, which demonstrated another record-breaking quarter.
Overall rental rates averaged $24.72 per square foot (psf), and Class A rates in Buckhead averaged $34.27 per square foot, also a new record high. This is the first time in Atlanta’s history that a submarket has had Class A rates eclipse $34 psf for two consecutive quarters.
The overall vacancy rate in the third quarter of 2017 remained steady quarter-over-quarter at 16.7 percent. Atlanta added 218,000 square feet of deliveries in the third quarter following near-record deliveries of 1.3 million square feet in the second quarter. Absorption for the city overall totaled 67,544 square feet, with the suburban submarkets experiencing 89,000 square feet of positive absorption.
Leasing activity in the third quarter totaled more than 2.4 million square feet, with the Central Perimeter dominating for the second consecutive quarter with 500,056 square feet of leases signed. Georgia 400/North Fulton was a close second at 458,160 square feet of leasing activity, followed by the Midtown submarket with 407,728 square feet.
With 3 million square feet of office space under construction, 2017 will experience the largest amount of deliveries since 2010. Of the 1.14 million square feet of office space under construction in suburban submarkets, 91 percent is in Central Perimeter, Georgia 400/North Fulton and Cumberland/Northwest.
To view the rest of the report, visit our research page.