ATLANTA OFFICE REPORT
Midtown Submarket
Q1 2022
Midtown Submarket Still Tops in Atlanta Despite Slow Start to 2022 •
•
•
Midtown saw negative absorption of (191,182) square feet in Q1 of 2022, taking a slight step back after three consecutive quarters of positive absorption. Over the last 12 months, Midtown has led the Atlanta market with positive absorption of 802,892 square feet over that period.
2.4% rise in vacancy over past year
ABSORPTION AND VACANCY RATE
26%
1,000,000 800,000
24%
600,000
22%
400,000
20%
200,000
The negative absorption figure from Q1 was largely due to Norfolk Southern moving out of over 250,000 square feet at Promenade Central as they move into their 750,000 square foot built-to-suit headquarters at Tech Square.
0
18%
‐200,000
16%
‐400,000
14%
‐600,000
Midtown leads the Atlanta market in construction, 7 buildings totaling 1,694,009 square feet under construction. This represents 45% of the total square footage under construction in the Atlanta market. Approximately 30% of the under construction space in Midtown is currently pre-leased.
12%
‐800,000 ‐1,000,000
Q3 2020
Q1 2021 Absorption
Q3 2021
Q1 2022
10%
Source: CoStar
Vacancy Rate
MIDTOWN
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
21,604,457
25.0%
1.3%
5,685,396
26.3%
25.4%
(191,182)
820,102
-
1,662,184
$42.31
Class B
3,613,537
9.6%
0.9%
377,910
10.5%
10.6%
6,706
(40,701)
-
31,825
$25.72
Class C
832,852
9.2%
0.0%
76,173
9.2%
11.1%
15,056
23,491
-
-
$25.94
Total
26,041,846
22.4%
1.2%
6,139,479
23.6%
22.9%
(169,420)
802,892
-
1,694,009
$41.61
TOP MIDTOWN LEASES Q1 2022 Tenant
Property
Landlord
SF
Lease Type
Micron
712 West Peachtree
Portman Holdings
93,072
New Lease
Outreach Corporation
Star Metals Offices
The Allen Morris Company
32,927
New Lease
Kimley-Horn
Promenade Central
Cousins Properties
30,652
New Lease
RECENT MIDTOWN INVESTMENT SALES Property
Price
SF
$/SF
Date
Buyer
725 Ponce
$300,200,000
370,931
$809
7/28/2021
Cousins Properties
740 W Peachtree
$248,000,000
352,000
$712
5/25/2021
Blackstone
999 Peachtree Street
$223,900,000
621,946
$360
10/22/2021
Piedmont Office Realty Trust
ACTIVE MIDTOWN UNDER CONSTRUCTION PROJECTS
Midtown Union
14th & Spring
765 Echo Street
612,947 SF | Aug 2022
320,089 SF | Jul 2022
274,974 SF | May 2023
MetLife
Greenstone Properties
Lincoln Property Company
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 | MIDTOWN SUBMARKET Q1 2022
IN THE MARKET • National companies establishing technology and innovation centers in Midtown: Airbnb, Nike, and Ford Motor Company are among the firms that have announced they are establishing new technology and innovation centers in Midtown. West Midtown has been the area of choice for these firms, attracted to the newly built office buildings and the proximity to Georgia Tech. Airbnb is establishing an initial office at The Interlock, while keeping the door open for a possible move to the Interlock Phase II, which is currently under construction. Nike has its sights set on the Star Metals Offices for their technology center, while Ford has taken 12,000 square feet for its innovation lab at 8West. • Cash App bringing 100 jobs to the Eastside Trail: Payment service company Cash App is occupying 30,000 square feet and moving over 100 jobs to The Mill, located on the site of the former Masquerade, a concert venue. Located on the BeltLine Eastside Trail, the Coro Realty developed project is now fully leased.
8West
The Mill
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 Midtown Listings
CIRCA 730
One & Two Midtown Plaza
1372 Peachtree
730 Peachtree St NE
1360 Peachtree St NE | 1349 Peachtree St NE
1372 Peachtree St
1,700 SF - 9,945 SF
1,100 SF - 60,035 SF
38,451 SF
Hunter Henritze / Caroline Fisher
Hunter Henritze / Caroline Fisher
Hunter Henritze / Michael Howell
Michael Howell / Robert deGolian
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