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Downtown Atlanta's occupancy gains streak comes to an end in Q4

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Downtown_2019

Downtown ended a streak of nine consecutive quarters of occupancy gains, losing nearly 40,000 square feet in Q4 due mostly to Georgia-Pacific's contraction at 133 Peachtree Street. On the year, however, Downtown performed well, absorbing 147,000 square feet of space.

Key Takeaways

  • At 12.4%, the submarket's office vacancy rate is at its lowest point in 17 years. Class A vacancy declined 1.1% year-over-year.
  • Leasing was fairly steady in Atlanta's Downtown over the last three months. Convoy's lease at Bank of America Tower in Q4 capped off a respectable year of activity in the city's largest office tower.
  • Downtown Atlanta's average rental rate went up 6.7% this quarter, with the gap between Class A and Class B properties remaining narrow.
  • Although activity has been positive, Atlanta's Downtown faces a few challenges in 2020 when Anthem and McKinsey vacate the submarket for new offices in Midtown.

 


4Q19_Downtown

Downtown Atlanta's occupancy gains streak comes to an end in Q4

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Related Experts

Drew Levine

Senior Vice President, Principal

Atlanta

I am a Senior Vice President in the Occupier Services Group, a Colliers group that exclusively represents tenants. I have successfully advised startups, high-growth, and established companies since 2011. My team delivers customized services on local, national, and global levels that allow companies to make well-informed, profit driven real estate decisions. I have been involved in a wide range of transactions, from small acquisitions for startup companies to campus projects for Fortune 500 companies. Our work has included relocation and expansion projects, consolidations and dispositions, headquarter planning, lease terminations and complete portfolio planning strategies for hundreds of leading technology, professional services, and manufacturing companies. We strive to deliver real estate business solutions that: add measurable value, reduce costs, decrease business operating risks, improve workplace performance, expand flexibility, and increase overall profitability.

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Paul Reese

Assistant Vice-President

Atlanta

Paul Reese is an associate with Colliers International exclusively representing tenants in Metro Atlanta.  He has advised a broad range of clients from law firms to young technology companies. Paul focuses on working with young technology companies to navigate their financial and growth challenges in real estate. He uses his in-depth knowledge of the market to create a competitive advantage for clients.  Paul’s area of expertise is the in-town office market including downtown Atlanta, Midtown and West Midtown. 


Paul takes a consultive approach in achieving his clients’ real estate goals. His knowledge of the Atlanta office market and experience with complex transactions gives his clients confidence that they are getting the best deal.  Paul leads throughout the process and ensures the desired results are delivered on time. He places an emphasis on developing relationships with owners and leasing representatives to understand their goals and, subsequently, align his clients with the right space, building and owner. 
 

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