ATLANTA OFFICE REPORT
North Fulton Submarket
Q1 2022
Room for Growth in North Fulton as Vacancy Rates Continue to Rise
ABSORPTION ANDand VACANCY Absorption Vacancy RateRATE 200,000
Sublease Vacancy Rate
Total Vacant SF
Class A
13,209,944
22.7%
3.4%
Class B
10,073,163
17.0%
2.7%
20%
0
18%
‐100,000 ‐200,000
16%
‐300,000
• The submarket’s vacancy rate rose 60 basis points (0.6%) in Q1, finishing at 22.6%, the highest vacancy rate North Fulton has seen since 2003. Asking rents have begun to fall reflecting this vacancy, with Class A rents falling 1.0% over the past two quarters. Direct Vacancy Rate
22%
100,000
• The negative absorption in Q1 was driven in part by two large move-outs: McKesson leaving 78,000 square feet at Stonebridge I, and Bank of America vacating 61,909 square feet at 1355 Windward Concourse.
Total Inventory SF
24%
300,000
• North Fulton saw negative absorption of (139,628) square feet in Q1 of 2022. This brought the total net absorption over the past 12 months to a loss of (303,372) square feet.
NORTH FULTON
2.2% rise in vacancy over past 12 months
14%
‐400,000 ‐500,000
Q3 2020
Q1 2021
Q3 2021
Absorption
Vacancy Rate
Q1 2022
12%
Source: CoStar
Vac Rate Q1 ‘22
Vac Rate Q4 ‘21
Net Absorp Q1 ‘22
Net Absorp Last 12 Mos
Deliveries
3,453,730
26.1%
25.3%
(107,988)
(180,265)
-
24,764
$27.86
1,978,131
19.6%
19.3%
(33,329)
(132,867)
-
91,030
$22.06
Under Constr
Avg Rent (FSG)
Class C
802,848
0.4%
0.0%
3,578
0.4%
0.7%
1,689
9,760
-
-
$21.25
Total
24,085,955
19.6%
3.0%
5,435,429
22.6%
22.0%
(139,628)
(303,372)
-
115,794
$25.65
TOP NORTH FULTON LEASES Q1 2022 Tenant
Property
Landlord
SF
Lease Type
Honda
Royal Centre One
The Simpson Organization
90,592
New Lease
5925 Cabot Pky
The Woodbery Group
68,798
New Lease
The Falls at Sanctuary Park
Rubenstein Partners
14,146
New Lease
Stryten Meadows & Ohly
RECENT NORTH FULTON INVESTMENT SALES Property
Price
SF
$/SF
Date
Buyer
Windward Chase
$48,200,000
401,470
$120
2/1/2022
RealOp Investments
5405 Windward Pky
$48,000,000
248,446
$193
10/29/2021
Rubenstein Partners
3905 Brookside Pky
$42,900,000
133,355
$321
12/30/2021
The Carlyle Group
ACTIVE NORTH FULTON UNDER CONSTRUCTION PROJECTS
12655 Birmingham Hwy
100 N Main St
Davis Alpharetta
67,500 SF | Aug 2022
24,764 SF | Dec 2022
23,530 SF | Aug 2022
Market District Development
Avego
The Davis Group
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 | NORTH FULTON SUBMARKET Q1 2022
IN THE MARKET • First office phase at Forsyth’s Halcyon is fully leased: Halcyon, a 135-acre development in Forsyth county, has fully leased their 150,000 square foot office component. Opened in 2019, Halcyon boasts a mixed-use “live, work, play” environment, with plenty of restaurants and retail, a gym, and nearly 700 residential units. Tenants have felt that for the area, the amenities at places like Halcyon and Avalon are unmatched. • 5405 Windward Parkway Sells for $48 Million: Rubenstein Partners purchased 5405 Windward Parkway on October 29, 2021 at a $194 per square foot rate. Highwoods Properties was the seller of the 247,000 square foot, four story office building. The property was 93% leased at the time of sale to two tenants, Avanos and Andritz Inc. • Historic Alpharetta school to be turned into creative office space: KB Venture Partners is transforming a historic black school that closed in 1968 into creative office space. Located at 154 Kimball Bridge Rd, KB Venture Partners is aiming to turn this 4-acre site into a timber frame office building.
Halcyon
5405 Windward Pky
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 North Fulton Listings
Northwinds Office Park
Parc Point
Park at Windward Concourse
2475, 2520, 2500, 2550 Northwinds Pky 11065 Haynes Bridge Rd 11625 & 11675 Rainwater Dr
800/900 North Point Parkway
1720 Windward Concourse & 1725 Windward Concourse
1,000 SF - 25,000 SF
1,000 SF - 160,000 SF
1,000 SF - 8,000 SF
Hunter Henritze / Caroline Fisher Michael Howell / Robert Degolian
Hunter Henritze / Caroline Fisher Robert Degolian
Matt Fergus / Seabie Hickson Michael Howell
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