ATLANTA OFFICE REPORT
Central Perimeter Submarket
Q3 2022
Positive Q3 for Central Perimeter as Sublease Space Continues to Rise
ABSORPTION AND VACANCY RATE
• Central Perimeter saw positive absorption of 87,436 square feet in Q3 of 2022, the third positive absorption quarter for the submarket in the past four. The most notable move-in was Hapag-Lloyd occupying their 128,109 square foot space at Three Ravinia. NexTraq (25,768 sf) and IRB Holding Corp (26,693 sf) also took space at Sterling Pointe II and One Glenlake respectively.
600,000 400,000
26%
200,000
24%
0
22%
‐200,000
• The vacancy rate in Central Perimeter dropped 40 basis points (0.4%) in Q3, and fell 80 basis points (0.8%) among Class A properties.
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 1.4 million square feet on the sublease market, representing 5.4% of Central Perimeter’s total inventory.
18%
‐600,000 ‐800,000
Q1 2021
Q3 2021 Absorption
Total Inventory SF
Direct Vacancy Rate
Sublease Vacancy Rate
Total Vacant SF
Vac Rate Q3 ‘22
Vac Rate Q2 ‘22
Class A
19,511,143
23.5%
2.0%
4,981,169
25.5%
Class B
5,562,478
14.7%
1.1%
874,735
15.7%
Class C
835,555
12.0%
0.8%
107,205
Total
25,909,176
21.3%
1.8%
5,963,109
CP
1.9% fall in vacancy since Q3 2021 28%
Q1 2022
Q3 2022
Vacancy Rate
16%
Source: CoStar
Net Absorp Q3 ‘22
Net Absorp YTD
Deliveries YTD
Under Constr
Avg Rent (FSG)
26.3%
143,299
342,162
-
35,656
$32.18
15.2%
(30,886)
37,711
-
-
$23.33
12.8%
9.8%
(24,977)
(12,145)
-
-
$22.03
23.0%
23.4%
87,436
367,728
-
35,656
$31.01
RECENT CENTRAL PERIMETER LEASES Tenant
Property
Landlord
SF
Lease Type
1001 Perimeter Summit
State Street Corporation
61,706
Renewal
Enterprise Holdings
Ashford Perimeter
CP Group
31,000
New Lease
The Intersect Group
One Glenlake
Starwood Capital Group
26,693
New Lease
Zurich North America
RECENT CENTRAL PERIMETER INVESTMENT SALES Property 900 Ashwood
Price
SF
$/SF
Date
Buyer
$34,500,000
207,291
$166
2/15/2022
Velocis
Northridge Center I & II
$22,700,165
189,172
$120
7/27/2022
K&C Management
River Ridge
$18,255,000
178,941
$101
8/8/2022
Insignia Realty
CENTRAL PERIMETER UNDER CONSTRUCTION PROJECTS
High Street Loft Office 1A
Campus 244
35,656 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 Q3 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
2,754 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.
lpcsoutheast.com