The Atlanta office market experienced continued positive momentum to start 2017. Overall average asking rental rates reached a new record in the first quarter of 2017 at $23.51 per square foot (psf), an increase from $23.39 psf last quarter. The Class B market experienced the largest rent growth from $18.61 psf last quarter to $19.02 psf. Overall average asking rental rates in Buckhead are the highest in the city at $32.19, with a vacancy rate of 12.2 percent.
The Atlanta overall vacancy rate in the first quarter of 2017 slightly increased to 16 percent from 15.8 percent in the fourth quarter of 2016. Two large suburban move-outs totaling nearly 400,000 square feet led to 105,000 square feet of negative net absorption for the overall Atlanta market. This marks Atlanta’s first quarter of negative net absorption since 2011, ending the streak of 21 consecutive quarters of positive net absorption. Despite Atlanta’s suburban market experiencing negative net absorption, the CBD market posted over 260,000 square feet of positive occupancy gains with Downtown leading the way with 117,000 square feet of positive net absorption.
To view the entire Q1 Atlanta office report, click here to visit the Market Research page.