West Midtown DEEP DIVE Q1 2022 Report
West Midtown saw positive absorption of 102,342 square feet in Q1 of 2022, bringing the total for the last 12 months to 302,608 square feet. The Q1 gains were mostly thanks to two significant move-ins: I Heart Media moving into 26,022 square feet at The Works, and SPACES occupying 56,452 square feet at Star Metals. This saw the submarket’s vacancy rate drop 320 basis points (3.2%) from 28.0% to 24.8%. Thanks to multiple spec buildings delivering in 2021, the Class A vacancy rate is at an unnaturally high mark of 44.1%: due to the small inventory, West Midtown is easy affected by vacant deliveries. This seesawing will continue in the next few years, as there is over 900,000 square feet of space currently under construction, compared to just 3.2 million square feet of existing inventory.
Hot Start to 2022 for West Midtown, More Growth to Come WEST 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
1,297,156
40.3%
3.9%
572,600
Class B
1,455,504
11.9%
1.3%
191,504
44.1%
51.5%
95,662
307,661
-
874,274
$43.29
13.2%
13.6%
6,680
(7,630)
-
31,825
$32.88
Class C
432,311
5.7%
0.0%
24,650
5.7%
5.7%
0
2,265
-
-
$25.08
Total
3,184,971
22.6%
2.2%
788,754
24.8%
28.0%
102,342
302,608
-
906,099
$41.18
ACTIVE WEST MIDTOWN UNDER CONSTRUCTION PROJECTS
1 M
O
O
RES
RD MILL
145,000 SF
W WESLEY RD NW
P E AC H T R E
E
B AT
T L E AV
1435 Hills Pl - Allied Studios
Jamestown E
2
1401 Hills Pl - Allied Studios 31,825 SF
1
Aug 2022
May 2022
Jamestown
CH
NORTHSIDE DR
2
3
223,851 SF
T AT
AH
MA
O OCHEE AV E
Westside Paper Sep 2022
Third & Urban
NW
RIE
Interlock Office Phase II 209,174 SF
LM
NW
EL
D LV
H OW
AB TT
4
Oct 2023
ILL
17TH ST
RD
S.J. Collins 14TH ST
4
3
5 10TH ST
5 LD LEE HOLLOWELL NA DO
765 Echo 274,976 SF
Jun 2023
Lincoln Property Company
6 AVE NW TH NOR
6
745 Echo 21,273 SF
Jun 2023
Lincoln Property Company
906,099 sf under construction 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.
West Midtown DEEP DIVE
Q1 2022 REPORT
IN THE MARKET
• West Midtown drawing technology and innovation centers from national companies: Airbnb, Nike, and Ford Motor Company are among the firms that have announced they are establishing new technology and innovation centers in West Midtown. Airbnb is establishing an initial office at The Interlock, while Nike has its sights set on the Star Metals Offices for its technology center. Ford most recently has taken 12,000 square feet for its innovation lab at 8West. • Crestlight Capital and J.P. Morgan Acquire West Midtown Creative Office Portfolio: The West Midtown creative office portfolio consisting of Inland Tract, COMPLEX, Puritan Mill, and Ellsworth were acquired by a joint venture consisting of Crestlight Capital and J.P. Morgan Global Alternatives. The four properties will retain their individual names, and the portfolio has been dubbed as the “Westside Collective” moving forward. Ownership has hired Lincoln Property Company to manage and lease the Westside Collective. Leasing will be led by Michael Howell, Hunter Henritze, and Caroline Fisher, while the property management will be led by Shane Froman and Stacy Abbate.
8West
COMPLEX West Midtown
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 West Midtown Listings
Echo Street West
Complex West Midtown
Inland Tract
Puritan Mill
Ellsworth Office Lofts 1510 Ellsworth Industrial Blvd
745 & 765 Echo St NW
1175 Chattahoochee Ave
1218 & 1236 Menlo Dr
916 & 950 Joseph E. Lowery Blvd NW
21,000 SF - 300,000 SF
7,000 SF - 18,000 SF
8,000 SF - 28,000 SF
1,700 SF - 16,400 SF
3,700 SF - 7,000 SF
Michael Howell / Hunter Henritze Caroline Fisher
Caroline Fisher / Michael Howell Hunter Henritze
Caroline Fisher / Michael Howell Hunter Henritze
Caroline Fisher / Michael Howell Hunter Henritze
Caroline Fisher / Michael Howell Hunter Henritze
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