ATLANTA OFFICE REPORT
North Fulton Submarket
Q3 2022
Flat Q3 for North Fulton as Sublease Availability Continues to Rise
ABSORPTION AND VACANCY RATE 300,000
• North Fulton saw positive absorption of 5,545 square feet in Q3 of 2022. This is just the second positive absorption quarter for the submarket in the last 3 years. Q3’s gain was led by Westfield Insurance moving into 26,730 sf at Mansell Two and Meadows & Ohly occupying 14,146 sf at 1125 Sanctuary Pky. • North Fulton continues to boast the highest percentage of inventory available for sublease of any Atlanta submarket, with 5.7% of supply (1.4 million square feet) on the sublease market. • The submarket’s vacancy rate was level in Q3, seeing no change from the 22.7% mark in Q2. Asking rents have been relatively flat now over the past few years, with just a 3.0% gain since Q3 of 2019. NORTH FULTON
Total Inventory SF
Direct Vacancy Rate
Sublease Vacancy Rate
Class A
12,885,621
23.7%
Class B
10,548,936
16.3%
1.0% rise in vacancy year-todate
Total Vacant SF
Vac Rate Q3 ‘22
2.8%
3,421,149
3.5%
2,083,656
24%
200,000
22%
100,000 20%
0 ‐100,000
18%
‐200,000
16%
‐300,000 14%
‐400,000 ‐500,000
Q1 2021
Q3 2021
Q1 2022
Absorption
Vacancy Rate
Net Absorp YTD
Deliveries YTD
Q3 2022
12%
Source: CoStar
Vac Rate Q2 ‘22
Net Absorp Q3 ‘22
Under Constr
Avg Rent (FSG)
26.6%
26.3%
(29,411)
(164,161)
-
22,070
$28.07
19.8%
20.0%
30,856
(74,020)
-
67,500
$22.60
Class C
889,626
2.2%
0.0%
19,206
2.2%
2.6%
4,100
(3,778)
-
-
$21.36
Total
24,324,183
19.7%
3.0%
5,524,011
22.7%
22.7%
5,545
(241,959)
-
89,570
$25.97
RECENT NORTH FULTON LEASES Tenant
Property
Landlord
SF
Lease Type
ADP
5995 Windward Pky
Grubb Properties
80,793
Sublease
Verint Systems
5995 Windward Pky
Grubb Properties
80,000
New Lease
Stonebridge I
Starwood REIT
52,006
Sublease
SK Battery
RECENT NORTH FULTON INVESTMENT SALES Property Windward Chase
Price
SF
$/SF
Date
Buyer
$48,200,000
401,470
$120
2/1/2022
RealOp Investments
11315 Johns Creek Pky
$31,591,828
96,357
$327
10/6/2022
Anchor Health Properties
Mansell Three
$19,719,255
126,140
$156
4/20/2022
The Simpson Organization
ACTIVE NORTH FULTON UNDER CONSTRUCTION PROJECTS
12655 Birmingham Hwy
Davis Alpharetta
67,500 SF | Dec 2022
22,070 SF | Dec 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 Q3 2022
IN THE MARKET • Details finalized for Alpha Loop extension at Northwinds: Alpha Loop, the 8-mile greenway trail set to encircle Alpharetta, will connect the Northwinds office campus with a $15.2 million extension. The 1-mile-long path will feature a 360-foot-long bridge and 144-foot-long tunnel beneath Westside Parkway. Alpha Loop will connect Avalon and Downtown Alpharetta to North Point Mall and the Big Creek Greenway, another trail system stretching from Roswell to Forsyth.
Northwinds
• Avalon developer turning attention to former State Farm campus: Mark Toro, the developer of Alpharetta’s Avalon, has set his sights on a new project at the corner of McGinnis Ferry Road and Johns Creek Parkway. The former State Farm campus in Johns Creek is set for a $350 million redevelopment that would include retail, housing, and dining elements. • First office phase at Forsyth’s Halcyon is fully leased: Halcyon has fully leased their 150,000 square foot office component. Opened in 2019, Halcyon boasts a mixed-use “live, work, play” environment.
The Quad at Johns Creek
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.
lpcsoutheast.com