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Atlanta Real Estate Market Trends | Midtown Atlanta Office Q4 2020

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Midtown_2019

Midtown Atlanta ends 2020 with its worst quarter ever in its history.

Key Takeaways

  • Midtown experienced its worst quarter ever in the last quarter of 2020.
  • Midtown's fourth quarter occupancy loss can be attributed to just one tenant.
  • The submarket's vacancy rate increased this quarter.
  • Midtown's Class A rental rate decreased the most of Atlanta's submarkets.
  • Activity is anticipated to turn positive over the coming year.

Overview

Midtown Atlanta ended the year with the worst quarter ever in its history. The submarket lost a net total of -856,900 square feet of occupied office space.

The fourth quarter's occupancy loss can be attributed to one tenant, whose vacancy has been in the works for some time. AT&T completed its move-out of its space at Tower Square, giving back just under 790,000 square feet as part of its ongoing consolidation strategy in Atlanta.

As expected, the submarket's vacancy rate increased in the fourth quarter of 2020. It is now at its highest level in six years.

Midtown's Class A rental rate dropped the most of any other submarket in Atlanta this quarter. This is likely due to the vacancy coming from AT&T's space as it is currently priced well below the submarket's average.

This quarter's occupancy loss was an anticipated bump in the road for Midtown Atlanta. The submarket continues to be Atlanta's top office node, remaining high on the lists of potential prospects. Overall activity will return here over the coming year.


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Atlanta Real Estate Market Trends | Midtown Atlanta Office Q4 2020

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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

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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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