Overall average asking rental rates for the Atlanta office market set a new record in 3Q 2016, hitting $23.38/square foot, 31 cents higher than the record set in the previous quarter. This is 5% higher than the rate from one year ago, and shows no signs of slowing down.
Leading the way on the Class A side was Midtown, where the rental rate hit $33.57, with Buckhead just behind at $33.28, up 7% in the past year. Midtown also had the strongest absorption numbers of Atlanta’s major office submarkets, totaling 590,457 square feet so far in 2016.
These sorts of numbers have driven a significant pickup in speculative construction, with more than 3.1 million square feet currently under way, and half of that already pre-leased. This is the largest amount of construction the Atlanta market has seen since the Buckhead construction book from 2007-09. And, with space continuing to be at a premium, additional proposed office projects are more likely to become a reality in the next year or two.
For much more on the 3Q numbers from Cushman & Wakefield Research, including all the stats broken out by submarket, click here to download the full report.