Key Takeaways

  • Still no significant occupancy gains for Buckhead starting off the year. The submarket absorbed only 3,000 square feet of space in Q1.
  • The few larger move-ins by AIG, Change Healthcare, and WeWork this quarter were offset by a handful of contractions and relocations in the submarket including Serta; Carr, Riggs & Ingram; and Fifth Third Bank.
  • The overall vacancy trend in Buckhead has been relatively flat over the past year and a half. As recent lease transactions take occupancy, this should begin to push the rate lower given the absence of large construction projects.
  • Rental rates maintained an steady upwards trajectory in Q1. This marks the sixth consecutive quarter with an increase.
  • Though off to a slow start this year, the increased leasing activity taking place in Buckhead will result in stronger occupancy gains for the submarket in the latter half of 2019.