ATLANTA OFFICE REPORT
North Fulton Submarket
Q2 2022
Room for Growth in North Fulton as Vacancy, Sublease Availability Continues to Rise • North Fulton saw negative absorption of 102,822 square feet in Q2 of 2022. This was the submarket’s 10th negative absorption quarter out of the past 11, with Q3 of 2021 as the lone positive quarter.
Direct Vacancy Rate
Sublease Vacancy Rate
Class A
12,910,622
23.0%
Class B
10,158,877
17.5%
Absorption and Vacancy Rate
24%
200,000
22%
100,000 20%
0
18%
‐100,000 ‐200,000
• The submarket’s vacancy rate rose 50 basis points (0.5%) in Q2, finishing at 22.8%, the highest vacancy rate North Fulton has seen since 2003. Asking rents have begun to fall reflecting this vacancy, with Class A rents falling 2.1% since Q3 of 2021.
Total Inventory SF
ABSORPTION AND VACANCY RATE
300,000
• North Fulton boasts the highest percentage of inventory available for sublease of any Atlanta submarket, with 5.3% of supply (over 1.2 million square feet) on the sublease market.
NORTH FULTON
1.7% rise in vacancy over past 12 months
16%
‐300,000 14%
‐400,000 ‐500,000
Q4 2020
Q2 2021
Q4 2021
Absorption
Vacancy Rate
Deliveries YTD
Q2 2022
12%
Source: CoStar
Total Vacant SF
Vac Rate Q2 ‘22
Vac Rate Q1 ‘22
Net Absorp Q2 ‘22
Net Absorp YTD
Under Constr
Avg Rent (FSG)
3.2%
3,389,130
26.3%
26.0%
(25,992)
(126,727)
-
23,530
$27.46
2.7%
2,042,565
20.1%
19.4%
(67,253)
(71,685)
-
67,500
$22.44
Class C
896,593
2.6%
0.0%
23,306
2.6%
1.5%
(9,577)
(7,878)
-
-
$21.36
Total
23,966,092
19.9%
2.9%
5,455,001
22.8%
22.3%
(102,822)
(206,290)
-
91,030
$25.76
TOP NORTH FULTON LEASES Q2 2022 Tenant Travelers
Property
Landlord
SF
Lease Type
1000 Windward Concourse
B Group Capital Management
92,244
Renewal
200 Milton Park
Adventus Realty Services
15,769
New Lease
100 Kimball Place
Greenstone Properties
13,682
New Lease
Aptos Nox Health
RECENT NORTH FULTON INVESTMENT SALES Property
Price
SF
$/SF
Date
Buyer
Windward Chase
$48,200,000
401,470
$120
2/1/2022
RealOp Investments
5405 Windward Pky
$48,000,000
248,446
$193
10/29/2021
Rubenstein Partners
3905 Brookside Pky
$42,900,000
133,355
$321
12/30/2021
The Carlyle Group
ACTIVE NORTH FULTON UNDER CONSTRUCTION PROJECTS
12655 Birmingham Hwy
Davis Alpharetta
67,500 SF | Oct 2022
23,530 SF | Oct 2022
Market District Development
The Davis Group
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 | NORTH FULTON SUBMARKET Q2 2022
IN THE MARKET • Avalon developer turning attention to former State Farm campus: Mark Toro, the mind behind redevelopments at Colony Square and Atlantic Station, and the developer of Alpharetta’s Avalon, has set his sights on a new project: The Quad at Johns Creek. The former State Farm campus is set for a $350 million redevelopment that would include retail, housing, and dining elements. Plans call for keeping 110,000 square feet of office space at the project to go alongside 200,000 square feet of retail, 800 apartments, and 150 townhomes.
The Quad at Johns Creek
• First office phase at Forsyth’s Halcyon is fully leased: Halcyon, a 135-acre development in Forsyth county, has fully leased their 150,000 square foot office component. Opened in 2019, Halcyon boasts a mixed-use “live, work, play” environment, with plenty of restaurants and retail, a gym, and nearly 700 residential units. Tenants have felt that for the area, the amenities at places like Halcyon and Avalon are unmatched. Halcyon 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 North Fulton Listings
Northwinds Office Park
Parc Point
Park at Windward Concourse
2475, 2520, 2500, 2550 Northwinds Pky 11065 Haynes Bridge Rd 11625 & 11675 Rainwater Dr
800/900 North Point Parkway
1720 Windward Concourse & 1725 Windward Concourse
1,000 SF - 35,000 SF
1,000 SF - 160,000 SF
1,000 SF - 8,000 SF
Hunter Henritze / Caroline Fisher Michael Howell / Robert Degolian
Hunter Henritze / Caroline Fisher Robert Degolian
Matt Fergus / Seabie Hickson Michael Howell
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.
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