- Similar to a year ago, Atlanta’s offi ce market begins 2019 with solid absorption results. Just over 540,000 square feet of space was absorbed in the first quarter.
- Three large occupancies were major contributors to the positive gains this quarter. Georgia Tech occupied 289,000 square feet at the newly delivered Coda, Serta Simmons occupied 210,000 square feet at its new build-to-suit at Assembly Yards, and Northside Hospital moved into 178,000 square feet at Perimeter Summit.
- With one million square feet delivered, Atlanta’s overall office vacancy rate increased slightly from the previous quarter; up 20 basis points (0.2%).
- As anticipated, Midtown saw a couple of new projects break ground this quarter including The Interlock and Atlantic Yards. Even more are expected to start in the second quarter.
- First quarter’s strong leasing and absorption sets the Atlanta office market up for stronger than expected occupancy gains this year; possibly the highest since 2015.
Atlanta Office Market
Atlanta’s offi ce market begins the year where it left off 2018 with positive momentum and solid fundamentals boosting overall results in the first quarter. At the forefront of this activity were the deliveries of Midtown’s Coda tower and Serta Simmons build-to-suit at the former GM plant. With Coda now officially part of the Midtown skyline, the submarket has leaped ahead of Northeast Atlanta as the fifth largest office submarket in Atlanta.