Key Takeaways

  • Midtown experienced its first negative quarter of absorption in four years in Q2 thanks to AT&T beginning its move out of 675 West Peachtree.  The company vacated 200,000 square feet this quarter.
  • Because of the negative absorption, the submarket experienced almost a full percentage point increase in its office vacancy rate.  It remains below 10% however, and is still the lowest of Atlanta’s major office submarkets.
  • Average rental rates increased for an 11th consecutive quarter.  Midtown’s Class A average increased its rank as the highest in the city, jumping 2.6% from last quarter.
  • After much speculation, Hines has broken ground on its T3 West Midtown project.  The building will include up to 230,000 square feet of loft-office space and is expected to deliver late 2019.
  • Midtown continues to be one of Atlanta’s strongest office submarkets; however, AT&T’s anticipated vacancies will continue to plague the submarket through the end of the year.