Key Takeaways

  • North Fulton experienced a modest quarter of absorption in Q1, much like every other office submarket in Atlanta. Just under 24,000 square feet of space was absorbed to start the year.
  • With reserved occupancy gains this quarter, North Fulton's overall vacancy rate showed no significant movement from the end of 2018. It remains at its highest level in four years.
  • Office leasing was steady in the submarket; however, most of the larger transactions were renewals. Still, a number of new, full-floor leases show there continues to be demand for office space here.
  • Average rents increased for an eighth consecutive quarter and continue to reach record highs. The Class A average is up a full $1.00/SF from this time last year.
  • On the whole, North Fulton's outlook for 2019 remains unchanged. The submarket is expected to see stronger occupancy gains beginning next quarter.