Key Takeaways

  • North Fulton had its worst quarter since statistics have been consistently tracked, losing almost 360,000 square feet of tenants in Q3. The submarket was plagued with large move-outs by General Motors, Comcast, and State Farm this quarter.
  • Because of the negative quarter, the submarket’s overall office vacancy rate jumped to 13%; its highest point in 2.5 years.
  • Both 1000 Avalon and 1 Edison Dr. broke ground in Q3, bringing the total office square feet under construction to 803,432 sq. ft.
  • Going against market fundamentals, the average rental rate in the submarket increased for a sixth consecutive quarter. The Class A average reached a new record high of $26.48/sf.
  • The down quarter in North Fulton was somewhat expected given the anticipated moves. The submarket should finish the year with positive absorption in Q4; however, it likely won’t be enough to bring the overall total into positive territory.

 3Q18_Northfulton