Northeast Atlanta led the Atlanta market in negative office absorption this quarter, losing 220,000 square feet of tenants.
The increased vacancy can be attributed to fewer move-ins this quarter, but mostly to NCR’s relocation to Midtown. The company vacated its campus at 2651 Satellite Blvd. in Q1.
Although leasing volume has been steady, most of the larger transactions in the submarket are renewals or smaller leases. The Peachtree Corners area of the submarket is beginning to see more interest from technology tenants who prefer suburban locations.
Even with more space on the market, average rental rates in Northeast Atlanta continue to move upwards. This is in line with the overall trend in the Atlanta office market.
Not much substantial change is expected going forward in the Northeast Atlanta submarket. Absorption is expected remain somewhat flat in 2018.
Northeast Atlanta led the Atlanta market in negative office absorption this quarter