Downtown Atlanta had a positive start to the year absorbing over 116,000 square feet in Q1. This was the second highest amount of space absorbed in Atlanta's office market this quarter. It also marks seven consecutive quarters of occupancy gains in the submarket.
Strong absorption levels over the past year have resulted in a 70 basis point drop in Downtown's overall vacancy rate. The submarket's Class B rate of 3.5% is the lowest of any other submarket in Atlanta.
Average rental rates in the submarket increased for a ninth consecutive quarter. While Class A rents have jumped 11.3% during this time, Class B rents have increased a dramatic 58%. This is due to low vacancy and also new adaptive reuse projects taking place here which are pushing rents for this type of space.
All indications point to another strong year of occupancy gains for Downtown Atlanta. Continued office leasing, along with influence from South Midtown's popularity is driving demand in the CBD.
1Q 2019 | Atlanta Office Downtown Submarket Report