Office Market Report: Spring 2023

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OFFICE MARKET REPORT: SPRING 2023

The Atlanta Office market continues to have a muted recovery. Net absorption has been positive 4 quarters in a row. In the first quarter, CBD had positive absorption over 132,489 SF, while the suburban markets lost 68,682 SF of tenants. Rental rates remained steady from Q4’22 to Q1’23. Under construction and deliveries were also down in the quarter. Both Amazon and UPS are bringing employees back to the office 3 days a week. Workers are coming back slowly, and this will help the office market recovery.

NET ABSORPTION, DELIVERIES, & VACANCY RATE

ATLANTA
VACANT SF 3438 P’TREE RD
BUCKHEAD - 207,980 SF 159
BUCKHEAD
58,000 SF 5887
37.5 MSF TOP LEASE TOP DELIVERABLE TOP SALE % VACANT 21.6% QRT NET ABSORPTION 63,807 SF DELIVERED SF 86,540 SF UNDER CONS. SF 2.6 MSF QUOTED RATES SALES PRICE $31.03 $199 / PSF
(CARTER’S)
ARMOR DR NE
-
GLENRIDGE DR NE CENTRAL PERIMETER
- $23.07M
4M SF 25% 20% 15% 10% 5% 0% 3M SF 2M SF 1M SF(1M SF) (2M SF) (3M SF) 2017 2018 2019 2020 2021 2022 2023 YTD NET ABSORPTION NET DELIVERIES VACANCY RATES

ABOUT SKCR OCCUPIED VS VACANT

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.

DOWNTOWN

SATLANTANORTHLAKENORTHEAST BUCKHEADNFULTON

MIDTOWNCENTRALPERIMETERNORTHWEST

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 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 21,377,250 SF 4,809,987 SF 22.5% 86,077 58,000 SF 129,751 SF $36.79 Central Perimeter 25,850,370 SF 5,790,953 SF 22.4% (27,422) 28,540 SF 100,905 SF $30.75 Downtown 17,732,381 SF 4,017,258 SF 22.7% 71,732 - 619,871 SF $31.42 Midtown 25,394,290 SF 5,811,437 SF 22.9% (25,320) - 1,474,829 SF $41.46 Northeast 15,788,622 SF 2,888,398 SF 18.3% (146,670) - 85,580 SF $21.40 North Fulton 21,906,110 SF 5,211,045 SF 23.8% 109,340 - 121,991 SF $26.37 Northlake 11,414,165 SF 2,070,511 SF 18.1% 9,669 - - $24.73 Northwest 26,240,112 SF 5,325,456 SF 20.3% (29,436) - - $27.80 South Atlanta 6,089,059 SF 797,598 SF 13.1% 17,286 - 30,149 SF $22.79 West Atlanta 1,741,749 SF 761,288 SF 43.7% (1,449) - - $31.85 Totals 173,534,108 SF 37,483,931 SF 21.6% 63,807 86,540 2,563,076 $31.03 CBD Totals Inventory SF Total Vacant SF % Vacancy Qrt Net Abs. Delivered SF Under Cons. SF Quoted Rates Class A CBD 50,102,786 12,238,290 24.4% 91,036 - 2,224,451 $38.20 Class B CBD 11,617,896 2,020,092 17.4% 84,143 58,000 - $31.52 Class C CBD 2,783,239 380,300 13.7% (42,690) - - $25.30 CBD Totals 64,503,921 14,638,682 22.7% 132,489 58,000 2,224,451 $37.17 Suburban Totals Inventory SF Total Vacant SF % Vacancy Qrt Net Abs. Delivered SF Under Cons. SF Quoted Rates Class A Suburban 61,426,644 14,635,749 23.8% 13,138 - 171,942 $29.37 Class B Suburban 42,485,098 7,561,854 17.8% (147,698) 28,540 166,683 $22.82 Class C Suburban 5,118,445 647,646 12.7% 65,878 - - $21.76 Suburban Totals 109,030,187 22,845,249 21.0% (68,682) 28,540 338,625 $27.09 WATLANTA 5M (43.7%) (13.1%) (18.1%) (18.3%) (22.7%) (22.5%) (23.8%) 15M OCCUPIED SF VACANT SF 10M 20M 25M
(22.9%) (22.4%) (20.3%)

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