Atlanta's office market continues its string of positive activity in the third quarter.
- Atlanta's office market continues its string of positive activity absorbing just over 175,000 square feet in the third quarter.
- Midtown returned to the lead spot this quarter, accounting for basically all of the positive results in Q3. Outside of this submarket activity was mostly equalized with move-ins, both large and small, offset by similar sized vacancies.
- For the sixth consecutive quarter, the office vacancy rate in Atlanta has shown no significant movement. Supply and demand fundamentals have remained balanced during this time.
- Third quarter deliveries were limited to small office buildigns under 100,000 square feet. New projects breaking ground in Q3 were also of the same size.
- Continued demand for space has pushed Atlanta's average office rent to yet another record high of $27.50/SF.
- With the year nearly complete, Atlanta's office market has almost matched 2018's total net absorption. Given the anticipated amount of occupancy gains next quarter, the city is likely to finish 2019 with its highest annual absorption total in 4 years.
Atlanta Office Market
Heading into the final quarter of the year, Atlanta’s office market continues to show enduring positive results. The third quarter saw over 175,000 square feet of office space absorbed, representing the fourth consecutive period of occupancy gains. Year-to-date, the amount of net absorption in the market almost tops all of 2018’s total.
Following a brief hiatus, Midtown returned to top form this quarter, essentially accounting for all of the positive activity. Led by Keysight Technologies’ occupancy at Coda, and expansions from both Invesco and Accenture, the submarket’s net absorption totaled 176,816 square feet this quarter. This has brought Midtown’s year-to-date amount to just under 470,000 square feet; behind only North Fulton’s total of 502,581 square feet which saw strong results in Q1 and Q2 thanks to Jackson Healthcare’s expansion delivery and other large occupancies by Veeam and McKesson.