Key Takeaways

  • Atlanta’s office market began 2018 with almost half-a-million square feet of net absorption. The 475,000 square feet absorbed is the highest Q1 amount in two years and breaks consecutive years of occupancy losses to start the year.
  • Despite the positive start, the overall office vacancy rate in Atlanta increased slightly from last quarter. This was a result of space delivered begin greater than the amount of space absorbed.
  • Almost 1.2 million square feet of new product delivered to the market in Q1. The largest buildings to come online were NCR’s Phase I headquarters in Midtown and the speculative project 4004 Perimeter Summit in Central Perimeter.
  • The overall average rent for Atlanta office space increased by its highest percentage since 2007 this quarter.
  • Along with upbeat absorption, offi ce leasing continued at a solid pace over the past three months. These two factors raise the overall outlook for 2018.

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Atlanta Office Market

The Atlanta office market is off to a quick start this year absorbing almost 475,000 square feet of space during the first quarter. This marks the first time in three years office absorption began the year in positive territory. NCR’s occupancy at its first phase office building in Midtown was the largest move-in over the past three months, accounting for practically all of Q1’s net absorption. The new 485,000 square foot project delivered in January with NCR relocating from its old headquarters in the suburbs to the highprofile development adjacent to Georgia Tech. Upon completion of its Phase II building, the two-tower campus will house up to 5,000 of the company’s employees. Naturally, thanks to NCR, Midtown led all of Atlanta in office space absorbed this quarter; followed by Buckhead and Central Perimeter.