Q2 2022 Central Perimeter Office Submarket Report

Page 1

ATLANTA OFFICE REPORT

Central Perimeter Submarket

Q2 2022

Central Perimeter Posts Best Quarterly Absorption Figure in 10 Years

ABSORPTION AND VACANCY RATE

• Central Perimeter saw positive absorption of 362,004 square feet in Q2 of 2022, the highest single quarter of absorption for the suburban submarket since 2012. There were multiple notable move-ins this quarter: Insight Global occupying 87,408 sf at Twelve24, Industrious taking 38,658 sf at 1 Concourse Pky, and ISSNMT moving into 37,933 at 7840 Roswell Rd.

600,000 400,000

Direct Vacancy Rate

24%

0

22%

‐200,000

20%

‐400,000

• Central Perimeter has the second-largest percentage (behind North Fulton) of inventory currently being marketed as sublease space of any Atlanta office submarket. There is currently over 1.3 million square feet on the sublease market, representing 5.2% of Central Perimeter’s total inventory. Total Inventory SF

26%

200,000

• Asking rents have continued to rise in Central Perimeter, with rates rising 1.0% since Q1 and 4.7% over the past year.

CP

1.5% fall in vacancy since Q3 2021 28%

18%

‐600,000 ‐800,000

Q4 2020

Q2 2021 Absorption

Q4 2021

Q2 2022

Vacancy Rate

16%

Source: CoStar

Sublease Vacancy Rate

Total Vacant SF

Vac Rate Q2 ‘22

Vac Rate Q1 ‘22

Net Absorp Q2 ‘22

Net Absorp YTD

Deliveries YTD

Under Constr

Avg Rent (FSG)

Class A

18,896,090

25.1%

2.1%

5,133,453

27.2%

28.6%

262,346

198,863

-

38,136

$32.03

Class B

5,560,387

14.0%

0.8%

820,407

14.8%

16.5%

97,232

92,039

-

-

$23.06

Class C

845,580

8.9%

0.8%

82,228

9.7%

10.0%

2,426

12,832

-

-

$21.46

Total

25,302,057

22.1%

1.7%

6,036,088

23.9%

25.3%

362,004

303,734

-

38,136

$30.95

TOP CENTRAL PERIMETER LEASES Q2 2022 Tenant

Property

Landlord

SF

Lease Type

Transportation Insight LLC

Campus 244

The Georgetown Co./RocaPoint Partners

174,400

New Lease

Insight Global

Campus 244

The Georgetown Co./RocaPoint Partners

133,796

New Lease

Sterling Pointe II

The Simpson Organization

25,768

New Lease

NexTraq

RECENT CENTRAL PERIMETER INVESTMENT SALES Property

Price

SF

$/SF

Date

Buyer

1224 Hammond Dr

$195,000,000

345,917

$563

6/28/2021

Office Properties Income Trust

900 Ashwood

$34,500,000

207,291

$166

2/15/2022

Velocis

50 Glenlake Pky

$20,964,000

$145.17

$145

10/28/2021

B Group Capital Management

CENTRAL PERIMETER UNDER CONSTRUCTION PROJECTS

High Street Loft Office 1A

Campus 244

38,136 SF | Jan 2024

350,000 SF | 2023

GID Urban Development Group

The Georgetown Co. / RocaPoint Partners

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 | CENTRAL PERIMETER SUBMARKET Q2 2022

IN THE MARKET • Transportation Insight relocating HQ to Campus 244: After several years of expansion in the Atlanta market, Transportation Insight, a global logistics provider, is relocating its headquarters from Charlotte to Central Perimeter. The firm signed a 174,400 square foot lease at the renovated Campus 244, taking the third and fourth floors. Transportation Insight currently employs 1,200 people in the Atlanta area, and has plans to add 300 more. The site of the former Gold Kist headquarters, Campus 244 is a joint venture from RocaPoint Partners and The Georgetown Company. The finished development will include retail, dining, and a hotel alongside the five story, 425,000 square foot office building. Staffing firm Insight Global has also signed a lease at the project, taking 133,700 square feet on the first two floors. • GID receives financing for High Street project: GID Development Group has secured construction financing from Bank OZK for their $2 billion High Street project in Dunwoody. Located near Perimeter Mall and the Dunwoody MARTA station, the 40-acre project is set to break ground by the end of 2021.

Campus 244

High Street

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 Central Perimeter Listings

200 Ashford Center

The Pointe

50 Glenlake

Centrum at Johnson Ferry Rd + Glenridge Dr

200 Ashford Center N

400 & 500 Northridge Rd

50 Glenlake Parkway

780 Johnson Ferry Rd NE

1,400 SF - 7,500 SF

1,765 SF - 46,548 SF

2,000 SF - 11,000 SF

1,200 SF - 19,436 SF

Matt Fergus / Hunter Henritze Seabie Hickson

Caroline Fisher / Hunter Henritze Michael Howell

Matt Fergus / Seabie Hickson

Caroline Fisher / Hunter Henritze Michael Howell / 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.


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.