Negative absorption was a net -89,000 square feet in Q2.
The largest vacancies this quarter came from NCR moving out of its office space at Satellite Place. The company continues to consolidate its employees to its new headquarters in Midtown.
Not surprisingly, Northeast Atlanta continues to have the highest office vacancy rate in the city at almost 20%.
Bucking economic principles, office rents in Northeast Atlanta continues to increase, despite more availability. Q2 was the submarket’s fourth quarter in a row with an uptick in the average.
Northeast Atlanta is likely to remain Atlanta’s weakest office submarket through the end of the year. The pickup in leasing activity, however, should help begin to push the submarket into more positive territory over the next 12 months.
For the second quarter in a row, Northeast Atlanta had more tenants move out of than move into office space.