ATLANTA OFFICE REPORT
Northwest Atlanta Submarket
Q1 2022
Slow Start to 2022 for Northwest Atlanta as Vacancy Rate Rises
ABSORPTION AND VACANCY RATE
• Northwest Atlanta saw negative absorption of (187,311) square feet across all property classes in Q1 of 2022. Over the past 12 months, Class B properties have been hit the hardest in the submarket, with negative absorption of (168,285) square feet, as opposed to negative absorption of just (13,299) amongst Class A properties.
100,000 50,000
19%
0
18%
‐50,000
17%
‐100,000
16%
‐150,000
• The submarket’s vacancy rate rose 60 basis points (0.6%) in Q1 to 19.0% but is still one of the lowest vacancy rates among Atlanta’s major submarkets, behind only Northeast Atlanta.
15%
‐200,000
14%
‐250,000
13%
‐300,000
• The average Class A rental rate in Northwest Atlanta has crested the $30.00 mark for the first time, finishing Q1 at $30.15, up 1.8% over the past 12 months. NORTH WEST
Vacancy rate icreased 1.5% in last 12 Mos 20%
‐350,000
Q3 2020
Q1 2021 Absorption
Q3 2021
Q1 2022
Vacancy Rate
12%
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
15,756,187
19.3%
2.4%
3,427,225
21.8%
21.3%
(67,840)
(13,299)
-
-
$30.15
Class B
11,821,705
17.1%
1.0%
2,143,238
18.1%
17.2%
(110,079)
(168,285)
-
43,367
$21.61
Class C
1,995,735
3.1%
0.0%
61,152
3.1%
2.6%
(9,392)
14,022
-
-
$16.68
Total
29,573,627
17.3%
1.7%
5,631,615
19.0%
18.4%
(187,311)
(167,562)
-
43,367
$27.08
TOP NORTHWEST ATLANTA LEASES Q1 2022 Tenant
Property
Landlord
SF
Lease Type
1090 Northchase
James Rafton
48,000
New Lease
Galleria 600
Piedmont Office Realty Trust
25,721
New Lease
2500 Cumberland
Noro Management
24,982
Sublease
GA Div of Family & Children Services Zep, Inc Sterling Seacrest Pritchard
RECENT NORTHWEST ATLANTA INVESTMENT SALES Property
Price
SF
$/SF
Date
Buyer
$90,250,000
457,131
$197
4/22/2021
Opal Holdings
One Overton Park
$72,850,000
407,349
$178
5/27/2021
CP Group
Cumberland Center
$34,200,000
111,185
$309
8/16/2021
SilverCap Partners
Riveredge Summit
NORTHWEST ATLANTA PROPOSED PROJECTS
Galleria 500
200 City View
Encore Center
Proposed
450,000 SF | Proposed
350,000 SF | Proposed
Piedmont Office Realty Trust
Pope & Land
Preferred Office Properties
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 | NORTHWEST ATLANTA SUBMARKET Q1 2021
IN THE MARKET • Truist to build new tower at The Battery: Truist Securities will be moving 1,000 jobs from Buckhead to The Battery in 2024. The namesake of the Braves’ stadium, Truist will be relocating their Securities division from the Atlanta Financial Center, where they currently occupy around 150,000 square feet. Truist’s lease is set to expire in 2025, with their new digs scheduled for a 2024 delivery. The new build-to-suit tower will be located behind home plate with views overlooking the field.
Truist Park
• New Development Could Add Mixed-Use Project Near Truist Park: RASS Associates, a Roswell-based development company, is looking to build an 8-acre project at 2800 Spring Road, just a stone’s throw away from The Battery. The project is set to include a 350-unit apartment building, a 200-key hotel, and 30,000 square feet of retail. RASS Associates purchased the property in 2019, on which currently sits the vacant Emerson Center office complex.
Proposed Project at 2800 Spring Road 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
3,500 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
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