For a second consecutive quarter, Atlanta's Buckhead office submarket witnessed negative net absorption. Year-to-date the submarket has experienced just over 200,000 square feet of occupancy loss.
- This quarter's negative activity was a result of USB Financial vacating almost 61,000 square feet at the Pinnacle and Merchant e-Solutions relocating to North Fulton.
- Buckhead's real estate market has been on a string of negative quarters over the past year with only Q4 2019 being positive. The submarket's overall vacancy rate has trended upwards, but only slightly. It is up 40 basis points (0.4%) year-over-year.
- Rental rates are up across the board in the submarket; however, it appears they have started to show signs of plateauing for the time being, likely a result of the pandemic's effects on office leasing.
- Buckhead Atlanta's real estate forecast for 2020 is anticipated to show more positive gains with Ameris Bank's expansion in Q3. The submarket is still in for a rough end of the year though.