Key Takeaways

  • Following a string of mediocre quarterly activity, Buckhead posted its strongest absorption in 3.5 years in the first quarter with occupancy increasing by more than 188,000 square feet.
  • Move-ins at Three Alliance contributed to the strong quarter. Aon, Mass Mutual, Kajima, and Gallup combined for a total of 108,000 square feet of occupancy in the building.
  • With demand picking up in the first quarter, the Class A average rental rate in Buckhead increased 1.6% from last quarter. With no new construction expected for some time, and landlords remaining confident on market conditions, rents are expected to continue increasing over the course of the year.
  • Buckhead’s strong first quarter will help the submarket achieve positive absorption in 2018. A few anticipated vacancies are expected next quarter, but given the recent pick-up in leasing in Q1, absorption activity should remain in positive territory.