ATLANTA
OFFICE MARKET: Q1 2024
Atlanta’s office market continues to shed space. With CNN leaving CNN Center, net absorption dropped 933,516 SF, Class A added 109,617 SF, while Class B & C combined lost -1.04 MSF. The vacancy rate tops 25.1%, with the CBD at 29% and the suburban office at 22.8%. Under construction continues to drop. It is now below 1.42 MSF. Overall rental rates are $31.87, while suburban rental rates are almost $10 less than in the CBD, $ 27.60 vs. $37.45. Concessions in free rent and TI packages are increasing as landlords seek to keep occupancy in their buildings.
TOP DELIVERY TOP SALE
VACANT SF WILDWOOD CENTER MANHATTAN ASSOCIATES NORTHWEST - 209,000 SF ECHO ST W - 765 ECHO ST MIDTOWN - 256,637 SF LINCOLN CENTER 1455 LINC. PKY - INNOVA SOLUTIONS CENTRAL PERIMETER - $14.5M/$78 PSF 44.4 MSF
TOP NEW LEASE
% VACANT 25.1% QRT NET ABSORPTION (933 KSF) DELIVERED SF 528,018 SF UNDER CONS. SF 1.4 MSF QUOTED RATES SALES PRICE $31.87 $107 / PSF
4M SF 30% 25% 20% 15% 10% 5% 3M SF 2M SF 1M SF(1M SF) (2M SF) (3M SF) 2018 2019 2020 2021 2022 2023 2024 YTD NET ABSORPTION NET DELIVERIES VACANCY RATES NET ABSORPTION, DELIVERIES, & VACANCY RATE
OCCUPIED VS VACANT
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.
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 30 staff accountants, managers, architects, marketing professionals, and leadership roles.
Contact us or 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 2024. Submarket Inventory SF Total Vacant SF % Vacancy Qrt Net Abs. Delivered SF Under Cons. SF Quoted Rates Buckhead 21,584,884 5,993,032 27.8% (62,180) - - $37.21 Central Perimeter 26,482,220 7,211,880 27.2% 127,531 - 100,905 $30.89 Downtown 18,284,716 5,657,604 30.9% (534,474) 119,000 19,935 $31.69 Midtown 26,610,868 7,627,931 28.7% (424,965) 296,247 1,201,849 $41.91 Northeast 15,702,750 2,958,070 18.8% (51,111) - 28,320 $22.01 North Fulton 22,223,169 6,172,331 27.8% (172,737) 82,512 71,534 $26.96 Northlake 11,493,083 2,035,344 17.7% 101,817 - - $25.45 Northwest 26,343,789 5,483,476 20.8% 106,493 - - $28.17 South Atlanta 6,499,147 850,025 13.1% (33,481) 30,259 - $23.03 West Atlanta 1,633,312 458,485 28.1% 9,591 - - $31.76 Totals 176,857,938 44,448,178 25.1% (933,516) 528,018 1,422,543 $31.87 CBD Totals Inventory SF Total Vacant SF % Vacancy Qrt Net Abs. Delivered SF Under Cons. SF Quoted Rates Class A CBD 51,799,572 15,404,811 29.7% (133,188) 415,247 1,221,784 $39.20 Class B CBD 11,445,915 3,041,150 26.6% (868,602) - - $31.78 Class C CBD 3,234,981 832,606 25.7% (19,829) - - $26.77 CBD Totals 66,480,468 19,278,567 29.0% (1,021,619) 415,247 1,221,784 $37.45 Suburban Totals Inventory SF Total Vacant SF % Vacancy Qrt Net Abs. Delivered SF Under Cons. SF Quoted Rates Class A Suburban 62,996,083 17,015,395 27.0% 242,805 112,771 200,759 $29.45 Class B Suburban 41,657,322 7,260,988 17.4% (134,603) - - $23.55 Class C Suburban 5,724,065 893,228 15.6% (20,099) - - $21.33 Suburban Totals 110,377,470 25,169,611 22.8% 88,103 112,771 200,759 $27.60 WATLANTA 5M (28.1%) (13.1%) (17.7%) (18.8%) (30.9%) (27.8%) (27.8%) 15M OCCUPIED SF VACANT SF 10M 20M 25M SATLANTANORTHLAKENORTHEASTDOWNTOWNBUCKHEADNFULTONMIDTOWNCENTRALPERIMETERNORTHWEST (28.7%) (27.2%) (20.8%)