ATLANTA OFFICE REPORT
Northeast Atlanta Submarket
Q1 2022
Northeast Atlanta Still Top Suburban Submarket Despite Slow Start to 2022
1.2% fall in vacancy in past year
ABSORPTION AND VACANCY RATE
• Northeast Atlanta saw negative absorption of (149,029) square feet in Q1 of 2022. Despite this, Northeast Atlanta has positive absorption of 229,739 square feet over the past 12 months, the best among suburban submarkets and second-best in Atlanta overall.
250,000
• Northeast Atlanta’s vacancy rate rose 80 basis points (0.8%) to 18.3% across all property classes. Despite the rise, Northeast Atlanta’s vacancy rate has dropped 120 basis points (1.2%) over the past year.
50,000
19%
0
18%
• There is currently over 450,000 square feet available for sublease in Northeast Atlanta, which accounts for 2.3% of the market’s inventory. While this is an all-time high figure for the submarket, it is much lower than other suburban submarkets such as North Fulton (5.2%) and Central Perimeter (5.1%). Total NORTHEAST Inventory SF
Direct Vacancy Rate
22%
200,000
21%
150,000 20%
100,000
‐50,000
17%
‐100,000 16%
‐150,000 ‐200,000
Q3 2020
Q1 2021 Absorption
Sublease Vacancy Rate
Total Vacant SF
Vac Rate Q1 ‘22
Vac Rate Q4 ‘21
Net Absorp Q1 ‘22
Q3 2021
Q1 2022
Vacancy Rate
15%
Source: CoStar
Net Absorp Last 12 Mos
Deliveries
Under Constr
Avg Rent (FSG)
Class A
6,786,597
22.9%
1.0%
1,624,059
23.9%
22.7%
(84,057)
(37,323)
-
-
$22.45
Class B
11,125,765
16.2%
0.9%
1,907,348
17.1%
16.6%
(57,391)
228,520
-
-
$18.76
Class C
1,611,066
2.7%
0.0%
43,062
2.7%
2.2%
(7,581)
38,542
-
-
$15.55
Total
19,523,428
17.4%
0.9%
3,574,469
18.3%
17.5%
(149,029)
229,739
-
-
$20.77
TOP NORTHEAST ATLANTA LEASES Q1 2022 Tenant Trenton Systems
Property
Landlord
SF
Lease Type
3100 Breckinridge Blvd - Bldg 1200
TerraCap Management
50,000
New Lease
Overlook at Sugarloaf
Crossgate Partners
15,590
New Lease
500 Pinnacle Ct
Mitchell Long
13,410
Renewal
NeoBright Cape Environmental Mgmt
RECENT NORTHEAST ATLANTA INVESTMENT SALES Property
Price
SF
$/SF
Date
Buyer
3720 & 3740 Davinci Ct
$36,000,000
197,833
$182
12/15/2021
Holder Properties
Lakeside at Spalding Triangle
$34,000,000
174,721
$194
12/2/2021
Intuitive Surgical
Huntcrest A+B
$32,400,000
162,430
$199
1/19/2022
The Runnymede Corporation
NORTHEAST ATLANTA PROJECTS
Gas South District
Revel
Under Construction
Proposed
Convention Center, Hotel, Arena
2+ Million SF Mixed-Use
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 | NORTHEAST ATLANTA SUBMARKET Q1 2022
IN THE MARKET • TPA planning mixed-use project in Peachtree Corners: TPA Group is pitching a mixed-use project in Peachtree Corners located at Engineering Drive and Peachtree Parkway. The project would include more than 300 apartments and a 5-story, 100-key boutique hotel. The development would incorporate an existing office building at 5707 Peachtree Pky as well as a small lake. The city of Peachtree Corners has required the hotel to be a boutique brand, such as Hotel Indigo. • Intuitive Surgical plans $500 million, 1,200 job expansion: Based in California, Intuitive Surgical is a market leader robotic surgery. The company is planning a massive expansion in Peachtree Corners, where they already have around 180 employees at 5655 Spalding Dr (Spalding Triangle Office Park I). They plan to take over 750,000 sf of space and create 1,200 new jobs as they move their manufacturing, engineering, and training operations to Georgia.
5707 Peachtree Pky
5655 Spalding Dr
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 Northeast Atlanta Listings
2 Sun
190-192 Tech Park
30 Tech Park
Spectrum
2 Sun Court
190/192 Tech Pky
30 Technology Pky S
2905/2915 Premiere Pky
3,000 SF - 23,500 SF
6,500 SF - 24,000 SF
11,125 SF - 14,600 SF
1,500 SF - 12,200 SF
Matt Fergus / Seabie Hickson Michael Howell
Matt Fergus / Seabie Hickson Hunter Henritze
Matt Fergus / Seabie Hickson Hunter Henritze
Matt Fergus / Seabie Hickson Hunter Henritze
3100 Breckinridge
Huntcrest I-IV
35 Tech Park
5390/5250 Triangle Pky
3100 Breckinridge Blvd - Bldg 1200
1735/1745/1755 N Brown Rd, 2750 Premiere Pky
35 Technology Pky S
10,300 SF - 26,000 SF
Fully Leased
2,000 SF - 11,800 SF
Fully Leased
Michael Howell / Hunter Henritze
Matt Fergus / Hunter Henritze Seabie Hickson
Hunter Henritze / Matt Fergus Seabie Hickson
Matt Fergus / Hunter Henritze Seabie Hickson
Lakeside at Peachtree Corners
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