41.9 MSF
ATLANTA
OFFICE MARKET: WINTER 2023
While net absorption of space directly from Landlords was positive (290 KSF), sublease space net absorption was negative (-544 KSF), causing the overall net absorption to be negative. It was the best quarter of net absorption since Q42022. Class A rental rates fell 3.5% from Q3, while Class B rates rose 1%. There have been numerous articles about a flight to quality by tenants, but when looking at the vacancy rate by class, Class B (17.4%) and C (16.1%) are much lower compared with Class A (27.6%) in Atlanta. Suburban vacancy rates are outperforming the CBD: 22.8% vs. 25.8%.
TOP
GALLERIA
GARDEN HILLS - 2827 P’TREE BUCKHEAD - 150,597 SF
100
SF
VACANT
600 GE VERONA NORTHWEST - 77,163 SF
EDGEWOOD DOWNTOWN - $34M/$111 PSF
NEW LEASE
DELIVERY
% VACANT 23.9% QRT NET ABSORPTION (253
DELIVERED SF 150,597 SF UNDER CONS. SF 1.9 MSF QUOTED RATES SALES PRICE
TOP
TOP SALE
KSF)
$31.74 $86 / PSF
4M SF 30% 25% 20% 15% 10% 5% 3M SF 2M SF 1M SF(1M SF) (2M SF) (3M SF) 2017 2018 2019 2020 2021 2022 2023 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. SKCR is committed to our clients, partners and employees, our industry, and the community.
SATLANTANORTHLAKENORTHEASTDOWNTOWNBUCKHEADNFULTONMIDTOWNCENTRALPERIMETERNORTHWEST
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 21,628,482 5,896,334 27.3% (161,507) 150,597 - $37.17 Central Perimeter 25,902,191 7,116,737 27.5% (351,865) - 100,905 $31.11 Downtown 17,989,019 4,524,476 25.2% 65,715 - 138,935 $31.62 Midtown 26,280,352 6,556,923 24.9% (129,556) - 1,498,096 $42.14 Northeast 15,722,519 2,915,849 18.5% 108,428 - 35,580 $22.24 North Fulton 22,538,523 6,033,554 26.8% 140,893 - 107,034 $26.94 Northlake 11,480,462 2,137,161 18.6% (115,177) - - $25.14 Northwest 26,085,777 5,591,989 21.4% 76,862 - - $28.22 South Atlanta 6,095,402 499,139 8.2% 74,526 - 30,149 $22.09 West Atlanta 1,900,393 726,936 38.3% 37,889 - - $32.05 Totals 175,623,120 41,999,098 23.9% (253,792) 150,597 1,910,699 $31.74 CBD Totals Inventory SF Total Vacant SF % Vacancy Qrt Net Abs. Delivered SF Under Cons. SF Quoted Rates Class A CBD 51,336,886 14,043,009 27.4% (225,859) 150,597 1,637,031 $39.17 Class B CBD 11,434,319 2,152,323 18.8% (20,771) - - $31.89 Class C CBD 3,126,648 782,401 25.0% 21,282 - - $27.43 CBD Totals 65,897,853 16,977,733 25.8% (225,348) 150,597 1,637,031 $37.61 Suburban Totals Inventory SF Total Vacant SF % Vacancy Qrt Net Abs. Delivered SF Under Cons. SF Quoted Rates Class A Suburban 62,417,251 17,302,788 27.7% (379,265) - 243,519 $27.58 Class B Suburban 41,995,325 7,141,538 17.0% 272,395 - 30,149 $23.65 Class C Suburban 5,312,691 577,039 10.9% 78,426 - - $22.05 Suburban Totals 109,725,267 25,021,365 22.8% (28,444) - 273,668 $27.76 WATLANTA 5M (38.3%) (8.2%) (18.6%) (18.5%) (25.2%) (27.3%) (26.8%) 15M OCCUPIED SF VACANT SF 10M 20M 25M
(24.9%) (27.5%) (21.4%)