- Following the negative start to the year, Atlanta’s office absorption turned positive in the second quarter with just over 616,000 square feet of space absorbed. This has brought the mid-year absorption total to +460,286 square feet.
- In spite of the positive absorption, Atlanta’s overall vacancy rate increased slightly quarter-over-quarter due to the delivery of new office product.
- Eleven buildings delivered this quarter totaling almost 1.5 million square feet. This is the highest quarterly amount added in over 7 years. Three Alliance, Riverwood 200 and 8000 Avalon were the largest office buildings to deliver.
- Although shy of anticipated absorption, the positive activity in the second quarter will likely carry over into the latter half of the year, leading to a sixth consecutive year of occupancy gains in Atlanta’s office market.
Atlanta Office Market
With the first quarter out of the way, the Atlanta office market returned to positive results in the second quarter as absorption topped 616,000 square feet; the highest quarterly amount absorbed since the end of 2015. Leading the market was the Cumberland/Galleria area of Northwest Atlanta which accounted for over half of the positive activity. This quarter’s 356,980 square feet of occupancy here also brought the submarket out of negative territory as of mid-year. Expansions helped fuel the gains with Racetrac, Bennett Thrasher, and Holder Construction each relocating to larger offices this quarter. In the cases of Bennett Thrasher and Holder, these tenants crossed the interstate, vacating One Overton Park for new offices at Riverwood 200 which recently delivered to the market. Two Ballpark Center, adjacent to SunTrust Park, also delivered in Q2 and is currently 100% leased.