The office market in Atlanta continues to hum along nicely, as we hit the halfway mark of 2016. Along with record asking rental rates — topping the $23 mark for the first time — the market posted strong overall occupancy, translating into a 1.2-percentage-point year-over-year decrease in vacancy, dropping to 16%. That’s the lowest the market has seen since the third quarter of 2008.
The Buckhead submarket has seen average asking rents rise 8.3% in the past year, while the highest average asking rental rates are in the Midtown Class A submarket, ending the quarter at $33.34/square foot.
Also, speculative construction is picking up speed over the past year, with more than 3.1 million square feet of office space now under construction. Approximately 60% of that space is already pre-leased. This is the largest amount of construction Atlanta has seen since the Buckhead boom from 2007-09.
To learn more about how the office market is performing, including the which surprise submarket is leading the way in spec construction, watch the video with Cushman & Wakefield Atlanta Associate Market Director of Research Sara Barnes, and view the full 2Q Office Marketbeat Report by clicking here.