After leading the market for three consecutive years, Midtown finished 2019 with the second highest amount of space absorbed in the Atlanta market, behind only North Fulton.
Key Takeaways
- Following a dip in Q3, Midtown's vacancy rate was back on the rise in Q4, increasing by 80 basis points (0.8%). This is due to the delivery of T3 West Midtown.
- Available space in the submarket has crept up the whole year, mostly as a result of new supply added, and also developers remain bullish on Midtown office demand.
- Overall quoted rents increased 3.9% from Q3, marketing 11 consecutive quarters of raises. The Class A average rent surpassed $40/SF for the first time in Atlanta's history.
- Midtown should have a fast start to 2020 as a number of high profile move-ins at 725 Ponce take place. Looking forward through the end of the year, just under 1.8 million square feet of new space is anticipated to deliver in the submarket.