ATLANTA OFFICE REPORT
North Fulton Submarket
Q3 2022
Flat Q3 for North Fulton as Sublease Availability Continues to Rise
ABSORPTION AND VACANCY RATE 300,000
• North Fulton saw positive absorption of 5,545 square feet in Q3 of 2022. This is just the second positive absorption quarter for the submarket in the last 3 years. Q3’s gain was led by Westfield Insurance moving into 26,730 sf at Mansell Two and Meadows & Ohly occupying 14,146 sf at 1125 Sanctuary Pky. • North Fulton continues to boast the highest percentage of inventory available for sublease of any Atlanta submarket, with 5.7% of supply (1.4 million square feet) on the sublease market. • The submarket’s vacancy rate was level in Q3, seeing no change from the 22.7% mark in Q2. Asking rents have been relatively flat now over the past few years, with just a 3.0% gain since Q3 of 2019. NORTH FULTON
Total Inventory SF
Direct Vacancy Rate
Sublease Vacancy Rate
Class A
12,885,621
23.7%
Class B
10,548,936
16.3%
1.0% rise in vacancy year-todate
Total Vacant SF
Vac Rate Q3 ‘22
2.8%
3,421,149
3.5%
2,083,656
24%
200,000
22%
100,000 20%
0 ‐100,000
18%
‐200,000
16%
‐300,000 14%
‐400,000 ‐500,000
Q1 2021
Q3 2021
Q1 2022
Absorption
Vacancy Rate
Net Absorp YTD
Deliveries YTD
Q3 2022
12%
Source: CoStar
Vac Rate Q2 ‘22
Net Absorp Q3 ‘22
Under Constr
Avg Rent (FSG)
26.6%
26.3%
(29,411)
(164,161)
-
22,070
$28.07
19.8%
20.0%
30,856
(74,020)
-
67,500
$22.60
Class C
889,626
2.2%
0.0%
19,206
2.2%
2.6%
4,100
(3,778)
-
-
$21.36
Total
24,324,183
19.7%
3.0%
5,524,011
22.7%
22.7%
5,545
(241,959)
-
89,570
$25.97
RECENT NORTH FULTON LEASES Tenant
Property
Landlord
SF
Lease Type
ADP
5995 Windward Pky
Grubb Properties
80,793
Sublease
Verint Systems
5995 Windward Pky
Grubb Properties
80,000
New Lease
Stonebridge I
Starwood REIT
52,006
Sublease
SK Battery
RECENT NORTH FULTON INVESTMENT SALES Property Windward Chase
Price
SF
$/SF
Date
Buyer
$48,200,000
401,470
$120
2/1/2022
RealOp Investments
11315 Johns Creek Pky
$31,591,828
96,357
$327
10/6/2022
Anchor Health Properties
Mansell Three
$19,719,255
126,140
$156
4/20/2022
The Simpson Organization
ACTIVE NORTH FULTON UNDER CONSTRUCTION PROJECTS
12655 Birmingham Hwy
Davis Alpharetta
67,500 SF | Dec 2022
22,070 SF | Dec 2022
Market District Development
The Davis Group
Source: CoStar, LPC Research
lpcsoutheast.com The information contained herein has been obtained from the owner of the property or from a source deemed reliable. While Lincoln Property Company has no reason to doubt its accuracy, we do not guarantee it.