Q1 2022 Cumberland Galleria Office Submarket Report

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ATLANTA OFFICE REPORT

Cumberland/Galleria Submarket

Q1 2022

Cumberland/Galleria Starts 2022 Slow, Rates Beginning to Climb

ABSORPTION AND VACANCY RATE

• The Cumberland/Galleria submarket saw negative absorption of (136,405) square feet across all property classes in Q1 of 2022. Over the past 12 months, Class A properties have experienced positive absorption of 20,693 square feet, while the heaviest losses have been sustained by the Class B product, with negative absorption of (139,677) square feet.

150,000

23%

100,000

22%

50,000

21%

0

20%

‐50,000

19%

‐100,000

18%

‐150,000

• The submarket’s vacancy rate rose 60 basis points (0.6%) in Q1, and has risen a total of 180 basis points (1.8%) over the past 12 months.

17%

‐200,000

16%

‐250,000 ‐300,000

Q3 2020

• Class A rents in Cumberland/Galleria rose 1.2% in Q1 of 2022 to $30.28, but have risen just a total of 1.6% over the past two years.

Q1 2021 Absorption

Q3 2021

Q1 2022

Vacancy Rate

15%

Source: CoStar

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

14,268,282

19.8%

2.5%

3,177,985

22.3%

22.0%

(42,687)

20,693

-

-

$30.28

CL/GA

Class B

7,557,258

19.9%

0.4%

1,533,935

20.3%

19.2%

(86,117)

(139,677)

-

-

$21.36

Class C

820,878

4.4%

0.0%

36,490

4.4%

3.5%

(7,601)

(17,774)

-

-

$17.79

Total

22,646,418

19.3%

1.7%

4,748,410

21.0%

20.4%

(136,405)

(136,758)

-

-

$27.51

TOP CUMBERLAND/GALLERIA LEASES Q1 2022 Tenant

Property

Landlord

SF

Lease Type

1090 Northchase

James Rafton

48,000

New Lease

Zep, Inc.

Galleria 600

Piedmont Office Realty Trust

25,721

New Lease

Guardian Pharmacy

Galleria 300

Piedmont Office Realty Trust

25,282

New Lease

2500 Cumberland

Noro Management

24,982

Sublease

GA Div of Family & Children Services

Sterling Seacrest Pritchard

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 Northwest Atlanta Listings

Chastain Center

Cobb Corporate Center

3400 Overton

The Gold Building

60 Chastain Center Blvd

350, 375, 400, 425 & 450 Franklin Rd

3400 Overton Park Dr

1945 The Exchange SE

3,000 SF - 11,000 SF

7,000 SF - 15,000 SF

3,000 SF

4,200 SF

Michael Howell / Matt Fergus

Matt Fergus / Hunter Henritze Seabie Hickson

Michael Howell / Hunter Henritze Caroline Fisher

Matt Fergus / Hunter Henritze Robert deGolian

Spencer Papciak

Research Manager

678.498.7676

spapciak@lpc.com

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.


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