Key Takeaways

  • The modest absorption activity in Q3 still managed to move the submarket’s overall vacancy rate down a bit. At 13.2%, it remains below the rate at this time last year by 60 basis points (0.6%).
  • Buckhead experienced a surge in office leasing this quarter, with a four large leases signed. AIG’s 75,000 square feet was the largest; however, Salesforce’s expansion was a close second at 73,000 square feet.
  • Average rents increased 2.7% over the past three months, which closely matches the increase in the overall market. Average rents for AAA-class properties are well over $40 per square foot now.
  • All indications point to a positive finish to the year for Buckhead. The submarket will see absorption top +100,000 SF by year’s end.