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.