ATLANTA OFFICE REPORT
Downtown Submarket
Q1 2022
Downtown Posts Positive Absorption Quarter as Construction Activity Picks Up
Vacancy rate rose 1.4% in last 12 months 22.0%
ABSORPTION AND VACANCY RATE 150,000
• Downtown Atlanta saw positive absorption of 28,274 square feet in Q1 of 2022, the best absorption figure of any submarket in the Atlanta office market. The bulk of these gains was among Class B properties, which saw positive absorption of 33,674 square feet in Q1.
100,000
20.0%
50,000 0
18.0%
‐50,000 ‐100,000
16.0%
‐150,000
• Thanks to Waldo’s breaking ground in December of 2021, Downtown now boasts 710,550 square feet under construction, the second-highest figure of any Atlanta office submarket behind only Midtown. 53% of this space is already leased, including Mailchimp signing a 300,000 square foot lease at the beltlineadjacent 760 Ralph McGill.
‐200,000
14.0%
‐250,000 ‐300,000
12.0%
‐350,000 ‐400,000
Q3 2020
• The average asking rent in Downtown has fallen, having dropped -3.8% from $29.41 in Q2 of 2021 to $28.30 in Q1 of 2022.
Q1 2021
Q3 2021
Absorption
10.0%
Q1 2022
Vacancy Rate
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
14,044,607
23.1%
1.2%
3,412,556
24.3%
23.8%
(23,854)
(353,478)
60,000
644,232
$28.34
DOWNTOWN
Class B
5,532,467
10.0%
0.0%
554,206
10.0%
10.6%
33,674
45,644
-
66,318
$29.60
Class C
2,122,627
16.3%
0.0%
345,324
16.3%
17.1%
18,454
56,601
-
-
$21.25
Total
21,699,701
19.1%
0.8%
4,312,086
19.9%
19.8%
28,274
(251,233)
60,000
710,550
$28.30
RECENT DOWNTOWN LEASES Tenant YKK
Property
Landlord
SF
Lease Type
101 Marietta St
Dilweg
20,060
New Lease
Marquis Two
Banyan Street Capital
17,900
New Lease
750 Glenwood Ave
Urban Realty Partners
11,885
New Lease
US Census Bureau Incident IQ
RECENT DOWNTOWN INVESTMENT SALES Property
Price
SF
$/SF
Date
Buyer
Bank of America Plaza
$380,000,000
1,351,586
$281
3/1/2022
CP Group
250 Williams St
$285,000,000
1,589,465
$179
7/22/2021
Mapletree
CNN Center
$144,800,000
1,149,960
$125
6/30/2021
Crocker Partners
ACTIVE DOWNTOWN UNDER CONSTRUCTION PROJECTS
760 Ralph McGill
Waldo’s
227-235A Mitchell St
475,000 SF | Oct 2022
118,882 | May 2023
50,350 SF | May 2022
New City Properties
Lucror Resources
Newport RE
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 | DOWNTOWN SUBMARKET Q1 2022
IN THE MARKET • 100 Edgewood to become apartments: Parkway Properties, the owner of 100 Edgewood Avenue, has decided to convert the office building into marketrate apartments. Formerly known as the United Way building, Parkway purchased the property in 2019 for $17.6 million. • CNN Center sells for over $144 million: In the largest Downtown transaction since 2016, CP Group has purchased the iconic CNN Center for $144,800,000. The state of Georgia sold the ground lease for the property to AT&T, which enabled the telecom giant to sell the mixed-use center to Florida-based CP Group. The CNN Center boasts 246,000 square feet of retail space and is located near State Farm Arena, Mercedes-Benz Stadium, and the future Gulch development. • Technology-driven mixed use development planned for South Downtown: Urbantec Development Partners plans to transform 10 acres of land into a mixed use development called Forge Atlanta. They plan to make the project at Ted Turner Drive and Whitehall Street a hub for life sciences companies in Atlanta.
100 Edgewood
CNN Center
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 Downtown Listings
55 Allen Plaza 55 Ivan Allen Boulevard NE 2,500 SF - 56,000 SF Hunter Henritze / Michael Howell Caroline Fisher
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