ATLANTA OFFICE REPORT
Central Perimeter Submarket
Q1 2022
Rates Increasing as Central Perimeter Starts 2022 Slow
ABSORPTION AND VACANCY RATE
• After seeing its first positive absorption quarter in over a year in Q4 2021, Central Perimeter suffered negative absorption of (58,270) square feet in Q1 of 2022. This resulted in the submarket’s vacancy rate increasing 30 basis points (0.3%) to 24.9%.
200,000 100,000
Direct Vacancy Rate
Class A
18,974,787
Class B
5,407,696
24%
‐100,000
Sublease Vacancy Rate
Total Vacant SF
Vac Rate Q1 ‘22
25.8%
2.2%
5,322,845
15.4%
0.8%
872,298
22%
‐200,000 ‐300,000
20%
‐400,000 18%
‐500,000
• Central Perimeter has the largest percentage of inventory currently being marketed as sublease space of any Atlanta office submarket. There is currently over 1.2 million square feet on the sublease market, representing 5.1% of Central Perimeter’s total inventory. Total Inventory SF
26%
0
• Class A properties have been hit the hardest in Central Perimeter over the past year, with negative absorption of (294,289) square feet over the past 12 months. Class A rental rates have continued to rise though, with a 4.9% rise over the past 12 months.
CP
0.9% rise in vacancy in last 12 months 28%
‐600,000
Q3 2020
Q1 2021 Absorption
Q3 2021
Q1 2022
Vacancy Rate
Vac Rate Q4 ‘21
Net Absorp Q1 ‘22
Net Absorp Last 12 Mos
Deliveries
28.1%
27.7%
(65,314)
(294,289)
16.1%
16.0%
(5,776)
64,803
16%
Source: CoStar
Under Constr
Avg Rent (FSG)
-
-
$31.86
-
44,697
$22.81
Class C
870,332
9.2%
0.8%
87,254
10.0%
11.5%
12,820
10,718
-
-
$21.18
Total
25,252,815
23.0%
1.9%
6,282,397
24.9%
24.6%
(58,270)
(218,768)
-
44,697
$30.66
TOP CENTRAL PERIMETER LEASES Q1 2022 Tenant
Property
Landlord
SF
Lease Type
IRB Holding Corp
One Glenlake
Starwood Capital Group
26,693
New Lease
Ember
Ashford Green
Manulife Financial Corporation
25,129
Sublease
The Pointe - Bldg 400
Dilweg
24,177
Sublease
CargoBarn
RECENT CENTRAL PERIMETER INVESTMENT SALES Property
Price
SF
$/SF
Date
Buyer
1224 Hammond Dr
$195,000,000
345,917
$563
6/28/2021
Office Properties Income Trust
1 & 2 Ravinia Dr
$146,650,000
828,733
$176
5/27/2021
CP Group
900 Ashwood
$34,500,000
207,291
$166
2/15/2022
Velocis
CENTRAL PERIMETER UNDER CONSTRUCTION PROJECTS
High Street Loft Office 1A
Campus 244
44,697 SF | Dec 2023
350,000 SF | 2023
GID Urban Development Group
The Georgetown Co. / RocaPoint Partners
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 | CENTRAL PERIMETER SUBMARKET Q1 2022
IN THE MARKET • Hapag-Lloyd moving HQ to Central Perimeter: German-based shipping and transportation company Hapag-Lloyd is moving its North American headquarters to Three Ravinia. The company plans to occupy over 125,000 square feet and create 250 new jobs. • GID receives financing for High Street project: GID Development Group has secured construction financing from Bank OZK for their $2 billion High Street project in Dunwoody. Located near Perimeter Mall and the Dunwoody MARTA station, the 40-acre project is set to break ground by the end of 2021. The first phase of High Street is planned to have 312,000 square feet of office space, 150,000 square feet of retail, and a multi-family component. • Dunwoody’s Campus 244 aims to lure major tech companies: RocaPoint Partners (the Atlanta affiliate of The Georgetown Company) is proposing a $265 million redevelopment in Dunwoody that would feature a 5-story timber framed office building. RocaPoint paid about $42 million for the site, which used to be the Gold Kist headquarters.
Three Ravinia
High Street
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 Central Perimeter Listings
200 Ashford Center
The Pointe
50 Glenlake
Centrum at Johnson Ferry Rd + Glenridge Dr
200 Ashford Center N
400 & 500 Northridge Rd
50 Glenlake Parkway
780 Johnson Ferry Rd NE
1,400 SF - 11,000 SF
1,765 SF - 46,548 SF
2,000 SF - 11,000 SF
1,200 SF - 19,436 SF
Matt Fergus / Hunter Henritze Seabie Hickson
Caroline Fisher / Hunter Henritze Michael Howell
Matt Fergus / Michael Howell Seabie Hickson
Caroline Fisher / Hunter Henritze Michael Howell / 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