ATLANTA OFFICE REPORT
Buckhead Submarket
Q1 2022
Tepid Start to 2022 for Buckhead as Construction Activity Picks Up
1.0% rise in vacancy in last 12 months
ABSORPTION AND VACANCY RATE
• Buckhead saw negative absorption of (29,696) square feet in Q1 of 2022, a slight loss after posting the first quarter with positive absorption in two years in Q4 of 2021. The headline of Q1 was Amazon’s expansion of 50,432 square feet at Terminus 200.
200,000
22.0%
0
20.0%
‐200,000
• The submarket’s overall vacancy rate rose just 10 basis points (0.1%) in Q1 to 21.4%, and has somewhat stabilized over the past year, rising just 100 basis points (1.0%) over the past 12 months. • Buckhead has seen an uptick in construction recently, with a third project “Garden Hills Office Building”, breaking ground in Q1. This brings the total space under construction to 575,814 square feet, the third-most of any Atlanta submarket behind Midtown and Downtown. 43.5% of the Buckhead space under construction is pre-leased.
18.0%
‐400,000
16.0%
‐600,000
14.0%
‐800,000
12.0%
‐1,000,000 ‐1,200,000
Q3 2020
Q1 2021 Absorption
Q3 2021
10.0%
Q1 2022
Vacancy Rate
Source: CoStar
BUCKHEAD
Total Inventory SF
Direct Vacancy Rate
Sublease Vacancy Rate
Total Vacant SF
Vac Rate Q1 ‘22
Vac Rate Q4 ‘21
Net Absorp Q1 ‘22
Net Absorp Last 12 Mos
Deliveries
Under Constr
Avg Rent (FSG)
Class A
17,961,141
22.1%
1.4%
4,220,510
23.5%
23.3%
(28,714)
(210,350)
-
517,814
$37.94
Class B
3,144,592
11.4%
0.4%
370,472
11.8%
11.8%
(982)
29,752
-
58,000
$28.57
Class C
382,558
2.9%
0.0%
11,149
2.9%
2.9%
0
(758)
-
-
$24.50
Total
21,488,291
20.2%
1.2%
4,602,131
21.4%
21.3%
(29,696)
(181,356)
-
575,814
$37.15
RECENT BUCKHEAD LEASES Tenant AT&T
Property
Landlord
SF
Lease Type
1055 Lenox Park Blvd
Bridge Investment Group
103,229
Renewal
3372 Peachtree Rd
Related Development
48,000
New Lease
Lenox Plaza
HD Realty
45,000
Renewal/Expansion
SPACES Bader Scott Injury Lawyers
RECENT BUCKHEAD INVESTMENT SALES Property
Price
SF
$/SF
Date
Buyer
3630 Peachtree
$202,000,000
438,646
$461
1/14/2022
Granite Properties
1025 Lenox Park Blvd
$148,500,000
331,013
$448
4/13/2022
The Simpson Organization
Piedmont Center 5-8
$106,000,000
516,256
$205
6/24/2021
The Ardent Companies
ACTIVE BUCKHEAD UNDER CONSTRUCTION PROJECTS
One Phipps Plaza
Garden Hills Office Building
The Elliot
388,063 SF | Jul 2022
129,751 SF | Sep 2023
58,000 SF | Oct 2022
Simon Property Group
Brand Properties
Cross-Town Realty
Source: CoStar, LPC Research
lpcsoutheast.com The information contained herein has been obtained from the owner of the property or from a source deemed reliable. While Lincoln Property Company has no reason to doubt its accuracy, we do not guarantee it.
ATLANTA OFFICE REPORT | BUCKHEAD SUBMARKET Q1 2022
IN THE MARKET • The Simpson Organization acquires 1025 Lenox Park: Bridge Investment Group, after inking AT&T to a 10year, full-building renewal, has sold 1025 Lenox Park to The Simpson Organization for $184 million. 1025 Lenox Park is 331,000 square feet, and AT&T is the sole tenant. It is a part of the larger Lenox Park office complex, which Bridge acquired in 2018 for $225 million. • Granite Properties purchases 3630 Peachtree for $202 million: The mixed-use tower with 17 stories of office space and 16 stories of condos was sold by Heitman Capital on January 14th, 2022 for $202 million, or $475 per square foot. The 428,910 square foot building was 81.1% leased at the time of sale.
1025 Lenox Park
• Greenstone Properties planning 19-story tower at Peachtree and Wieuca: Greenstone is under contract for a 2-acre property owned by the Church at Wieuca. They plan to build a 19-story, 500,000 square foot office tower as well as a 400-unit apartment tower on the site. Single-family housing is also included in the initial plans.
3630 Peachtree
Lincoln Property Company Atlanta tracks Class A, B, and C office buildings that are 10,000 square feet or greater, and excludes owner occupied, medical, and government buildings.
Lincoln Buckhead Listings
Buckhead Tower
Lenox Center
Lenox Plaza
3399 Peachtree Rd NE
3355 Lenox Rd NE
3384 Peachtree Rd NE
1,500 SF - 160,000 SF
1,200 SF - 8,885 SF
2,400 SF - 5,000 SF
Michael Howell / Hunter Henritze Caroline Fisher
Matt Fergus / Robert deGolian
Matt Fergus / Robert deGolian
Need More Market Intel?
Spencer Papciak Research Manager 678.498.7676 spapciak@lpc.com
Lincoln Property Company Southeast 3405 Piedmont Road, Suite 450 Atlanta, GA 30305 404 266 7600
About LPC SE: Lincoln Property Southeast is a commercial real estate firm offering a comprehensive suite of value-added services for our clients. With our substantial local presence and history in the Southeast region, we are ideally situated to provide a superior service, which comes from knowing the goals and challenges faced by our clientele: tenants, investors, lenders and owners of commercial real estate. Our people and our philosophy are the key ingredients for Lincoln’s solid track record of success. The information contained herein has been obtained from the owner of the property or from a source deemed reliable. While Lincoln Property Company has no reason to doubt its accuracy, we do not guarantee it.
lpcsoutheast.com