Q2 2022 Cumberland Galleria Office Submarket Report

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ATLANTA OFFICE REPORT

Cumberland/Galleria Submarket

Q2 2022

Activity Returning as Cumberland/Galleria Has Best Quarter Since 2019

ABSORPTION AND VACANCY RATE

• The Cumberland/Galleria submarket saw positive absorption of 237,376 square feet in Q2 of 2022, the best absorption quarter the submarket has seen since Q4 of 2019. Among the move-ins that contributed to Q2’s positive number were Zep Inc. occupying 25,721 sf at Galleria 600, Georgia Highlands College taking 21,575 sf at 1090 Northchase Pky, and Piedmont Healthcare moving into 20,134 sf at Paces West.

300,000

23%

200,000

22% 21%

100,000

20%

0

19% ‐100,000

18%

‐200,000

• The submarket’s vacancy rate fell 90 basis points (0.9%) in Q2, the first vacancy rate drop in over 2 years.

17%

‐300,000 ‐400,000

• Class A asking rents fell slightly in Q2, but have risen 1.6% over the past four quarters.

16%

Q4 2020

Q2 2021 Absorption

Q4 2021

Q2 2022

Vacancy Rate

15%

Source: CoStar

Total Inventory SF

Direct Vacancy Rate

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

14,190,934

19.0%

1.8%

2,947,407

20.8%

21.8%

146,027

142,170

-

-

$30.19

CL/GA

Class B

7,503,387

17.8%

0.3%

1,358,416

18.1%

19.4%

100,966

45,191

-

-

$21.62

Class C

813,473

5.7%

0.0%

46,107

5.7%

4.5%

(9,617)

(17,218)

-

-

$18.51

Total

22,507,794

18.1%

1.2%

4,351,930

19.3%

20.4%

237,376

170,143

-

-

$27.56

TOP CUMBERLAND/GALLERIA LEASES Q2 2022 Tenant Truist Brand Industrial Services GA Div of Family & Children Services Work Suites

Property

Landlord

SF

Lease Type

900 SE Battery Ave

Braves Development Company

250,000

New Lease

Galleria 600

Piedmont Office Realty Trust

53,080

New Lease

1090 Northchase

James Rafton

48,000

New Lease

3100 Interstate N Cir

Rubenstein Partners

26,716

New Lease

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

Chastain Meadows

3400 Overton

The Gold Building

60 Chastain Center Blvd

350, 375, 400, 425 & 450 Franklin Rd

222, 3330 & 3380 Chastain Meadows Parkway

3400 Overton Park Dr

1945 The Exchange SE

3,000 SF - 11,000 SF

7,000 SF - 15,000 SF

10,000 SF - 43,831 SF

100% Leased

4,200 SF

Matt Fergus / Hunter Henritze Seabie Hickson

Michael Howell / Caroline Fisher / Robert deGollian

Michael Howell / Hunter Henritze Caroline Fisher

Matt Fergus / Hunter Henritze Robert deGolian

Michael Howell / Matt Fergus

Spencer Papciak

Research Manager

678.498.7676

spapciak@lpc.com

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.


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