- No significant change in Atlanta’s overall office occupancy rate occurred this quarter as net absorption totaled only 45,000 square feet. This brings the year-to-date total to 375,300 square feet.
- Occupancies and vacancies practically balanced one another out in Q3. Expansions by Delta Dental, Delta CommunityCredit Union, and Industrious were countered by space consolidations and contractions by Sprint, WellStar, and Towers Watson.
- With the minimal increase in occupied space, Atlanta’s overall office vacancy rate remained unchanged at 13.9%.
- At 173,000 square feet, 3400 Overton was the only significant delivery in the third quarter. The building is 65% leased.
- Q3’s uninspiring results were not surprising given the anticipated moves during the quarter. The final three months of the year should see more positive traction given all of the recent lease expansions signed and set to take occupancy.
Atlanta Office Market
Whereas the second quarter of the year offered a more positive picture to Atlanta’s office environment, the third quarter provided a less distinct outcome with occupancies and vacancies basically balancing one another out. A meager 45,000 square feet of positive overall absorption occurred in Q3 indicating a flat summer for the Atlanta office market. Move activity was prevalent throughout the quarter; however, for all the new occupancies and expansions that took place, there were just as many space consolidations or contractions as well. The largest occupancy of the quarter was Synovus which occupied 65% of the newly delivered 3400 Overton in the Cumberland/Galleria area of Northwest Atlanta. The occupancy gives the Columbus, Georgia-based bank its largest and most significant office in the Atlanta area. On the other end of the spectrum, a few sizeable vacancies also took place in the quarter; most of which were planned.