The fourth quarter of 2016 experienced steady growth in several key areas. Overall average asking rental rates in metro Atlanta increased slightly to top the previous quarter’s record. Average asking rates finished the year at $23.39 per square foot (psf), breaking the third-quarter record of $23.38 psf. Average asking rates in Buckhead are the highest in the city at $32.17, with a vacancy rate of 12.4 percent.
Overall vacancy in the fourth quarter totaled 15.8 percent, the same as the previous quarter, however leasing activity continued with 264 leases signed totaling 1.9 million square feet. This brought the year’s total to 8.3 million square feet of leasing activity. The Class A market experienced the second-largest number of leases signed during 2016 with 609, but captured the most overall square footage at 5.4 million square feet. Conversely, Class B leases totaled 622 leases for 2.7 million square feet.
To view the entire Q4 Atlanta office report, click here to visit the Market Research page.