ATLANTA
MEDICAL REPORT: WINTER 2023
The Atlanta Medical Office market continues to be a bright spot. Net absorption has been strong, topping 350,660 SF and dropping the vacancy rate to 11.1%. Medical absorption increased by 530,553 SF for the year, the highest total since 2018. New construction for 2023 was 461,018 SF. Vacant office buildings are being retrofitted for medical use, such as 2233 Lake Park Dr., which will be 75% leased for a new VA Clinic. Rental rates have steadily climbed, up 6.5% over the last year. 82% of the medical space is in the suburban markets.
VACANT SF
2233
LAKE PARK DRIVE SMYRNA - 92,250 SF TO VA CLINIC
2103 BRASELTON HWY BUFORD - 30,138 SF
5995 BARFIELD RD ATLANTA - $14.5 M / $348 PSF
2.6 MSF
TOP LEASE
% VACANT 11.1% QRT NET ABSORPTION 350,660 DELIVERED SF 50 KSF UNDER CONS. SF 794 KSF QUOTED RATES SALES PRICE $27.76 $143 / PSF
TOP DELIVERY (Q3) TOP SALE
12% 13% 13% 12% 11% 11% 10% 10% 1 MSF 800 KSF 600 KSF 400 KSF 200 KSF(200 KSF) 2018 2019 2020 2021 2022 2023 NET ABSORPTION NET DELIVERIES VACANCY RATES NET ABSORPTION, DELIVERIES, & VACANCY RATE
ABOUT SKCR
SK Commercial Realty is a full-service real estate brokerage selling, buying, and leasing office, industrial, medical, retail, and land properties. We offer project consulting services, property management, accounting, and investment services. SKCR is committed to our clients, partners and employees, our industry, and the community.
We have been providing effective real estate solutions to clients throughout the southeast since 1985. Each transaction is treated with the same level of care and attention no matter the size or type, and each is managed by an experienced and knowledgeable team of brokers. SKCR has developed and acquired over 5,000,000 square feet of property, and has also grown to accomodate over 25 brokers and a team of nearly 20 staffed accountants, managers, architects, marketing professionals, and leadership roles. SKCR has won the Cobb County Small Business of the Year award several times, making them the leading independent commercial real estate brokerage in the county.
Learn more by visiting www.skcr.com or calling 404.252.1200.
Source: CoStar data comprised of metro Atlanta medical office market spec. buildings 15,000 RSF and greater. Report by Scott Crooks and Claire Blevins. Copyright 2023. Submarket Inventory SF Total Vacant SF % Vacancy Qrt Net Abs. Delivered SF Under Cons. SF Quoted Rates Buckhead 1,057,270 156,370 14.8% 2,820 - - $33.50 Central Perimeter 3,879,301 467,812 12.1% 43,620 - - $32.75 Downtown 396,407 - - 3,500 - 364,871 $23.30 Midtown 506,591 4,842 1.0% - - - $32.67 Northeast 3,543,064 396,176 11.2% 91,512 - 184,000 $23.96 North Fulton 3,578,792 596,345 16.7% 28,611 - 190,991 $29.06 Northlake 2,280,274 285,913 12.5% 244 - - $24.37 Northwest 4,317,430 279,865 6.5% 171,638 - 55,000 $26.03 South Atlanta 3,374,570 409,859 12.1% 19,846 - - $25.23 West Atlanta 794,408 47,057 5.9% (11,131) - - $27.20 Totals 23,728,107 2,644,239 11.1% 350,660 - 794,862 $27.76 CBD Totals Inventory SF Total Vacant SF % Vacancy Qrt Net Abs. Delivered SF Under Cons. SF Quoted Rates Class A CBD 1,102,854 84,438 7.7% 7,117 - 364,871 $35.52 Class B CBD 2,649,901 330,654 12.5% (2,220) - - $26.08 Class C CBD 487,787 32,033 6.6% 1,667 - - $22.88 CBD Totals 4,240,542 447,125 10.5% 6,564 - 364,871 $27.65 Suburban Totals Inventory SF Total Vacant SF % Vacancy Qrt Net Abs. Delivered SF Under Cons. SF Quoted Rates Class A Suburban 5,935,623 984,958 16.6% 142,716 - 390,991 $30.53 Class B Suburban 11,769,469 1,008,852 8.6% 203,423 - 39,000 $26.17 Class C Suburban 1,782,473 201,446 11.3% (16,503) - - $22.92 Suburban Totals 19,487,565 2,197,114 11.3% 344,096 - 429,991 $27.78 OCCUPIED SF VACANT SF
BUCKHEAD 1M (14.8%) (12.1%) (0.0%) (1.0%) (11.2%) (16.7%) (12.5%) 3M 2M 4M 5M CENTRALPERIMETERDOWNTOWNMIDTOWN NFULTONNORTHLAKENORTHWEST WATLANTASATLANTA NORTHEAST (6.5%) (12.1%) (5.9%)
OCCUPIED VS VACANT