Absorption turned negative in the third quarter for Central Perimeter, leading the Atlanta market in occupancy losses; this despite Insight Global's relocation and expansion into Twelve24.
The most considerable vacancy this quarter for Atlanta's Central Perimeter market was State Farm. As a result of the ongoing consolidation to its new office campus, the insurance company moved out of 200,000 square feet at Ashford Perimeter in the third quarter of 2020.
The negative quarter led to the Central Perimeter submarket's first uptick in overall vacancy in a year. Still, the Class A vacancy rate is below where it was this time in 2019.
One positive takeaway this quarter was from Central Perimeter's solid leasing activity. The submarket saw the highest amount of space leased among Atlanta's other office nodes thanks to large headquarter transactions by Deluxe Corporation and Rooms to Go.
The fourth quarter is expected to be another challenging period for Central Perimeter; however, thanks in part to the substantial leasing activity this quarter, 2021 looks good for this Atlanta office submarket.
The Central Perimeter submarket led the Atlanta market in occupancy losses in Q3 2020
State Farm's move out of 200,000 SF at Ashford Perimeter was the most considerable vacancy this quarter
Central Perimeter sees its first uptick in overall vacancy in a year
Class A vacancy is still below where it was this time last year
Central Perimeter led Atlanta in leasing activity thanks to large headquarter transactions
Q4 will present some challenges despite projections for a positive 2021 for the Central Perimeter submarket