Central Perimeter hit hard by consolidations and relocations
Author: Scott Amoson
- With over 260,000 square feet of negative office absorption over the past twelve months, Central Perimeter had its worst performing year of annual absorption since 2011. The submarket was hit hardest by companies relocating and consolidating to other submarkets in 2017.
- The loss of occupied space in the year resulted in a 70 basis point (0.7%) increase in the submarket’s overall vacancy rate. The largest vacancies in 2017 were State Farm out of North Terraces, Crawford & Co. out of 1001 Perimeter Summit, and Equifax out of Northpark Town Center.
- In spite of the rough year, the average asking rental rate for office in Central Perimeter is relatively the same as it was this time last year. Future increases will be determined by leasing activity.
- Although challenges remain, the submarket should see more positive activity in 2018 as offi ce leasing has picked up a bit.