Office absorption down for second year in Atlanta
Author: Scott Amoson
After a flat year of absorption, sizeable move-ins from GE, Child’s Advisory Partners and Better Cloud in Q4 helped push Buckhead into positive territory for 2017. The 69,000 square feet of annual absorption is the lowest net total for the submarket in 8 years.
Buckhead’s overall offi ce vacancy rate is up 3% year-over-year, mostly due to the second quarter delivery of Three Alliance Center. The building is over 95% leased; however, it has come at the expense of other buildings in the submarket.
The addition of second generation vacant space this year has resulted in three straight quarters with a drop in the submarket’s overall average rental rate. Buckhead no longer commands the highest average Class A rental rate in Atlanta.
Office leasing has begun to pick up a bit in Buckhead as of late. This coupled with no new development will help push occupancy rates higher in the coming year.