ATLANTA OFFICE REPORT
Northeast Atlanta Submarket
Q3 2022
Vacancy Rate, Sublease Availabilities Remain Low in Northeast Atlanta
ABSORPTION AND VACANCY RATE
• Northeast Atlanta saw positive absorption of 5,117 square feet in Q3 of 2022. This is the submarket’s fifth quarter in the past six with positive absorption, making it the top-performing suburban Atlanta submarket during this timeframe.
250,000
• Northeast Atlanta continues to have the lowest vacancy rate among Atlanta’s major submarkets at just 15.9% across all property classes. Class A properties check in a bit higher at 21.5%, good for second lowest in the market.
50,000
• There is currently over 360,000 square feet available for sublease in Northeast Atlanta (1.9% of all inventory). While historically a high figure for the submarket, it is much lower than other suburban submarkets such as North Fulton (5.7%) and Central Perimeter (5.4%). Total NORTHEAST Inventory SF
2.2% fall in vacancy since Q1 2021 20%
200,000
19%
150,000
18%
100,000
17%
0
16%
‐50,000 ‐100,000
15%
‐150,000 ‐200,000
Q1 2021
Q3 2021 Absorption
Q1 2022
Q3 2022
Vacancy Rate
14%
Source: CoStar
Direct Vacancy Rate
Sublease Vacancy Rate
Total Vacant SF
Vac Rate Q3 ‘22
Vac Rate Q2 ‘22
Net Absorp Q3 ‘22
Net Absorp YTD
Deliveries YTD
Under Constr
Avg Rent (FSG)
Class A
6,816,741
20.8%
0.7%
1,467,329
21.5%
21.8%
19,130
48,100
-
35,580
$22.83
Class B
10,555,014
12.9%
1.2%
1,486,819
14.1%
14.1%
1,409
10,199
-
-
$19.44
Class C
1,561,572
3.2%
0.2%
53,167
3.4%
2.4%
(15,422)
(6,149)
-
-
$19.59
Total
18,933,327
15.0%
0.9%
3,007,315
15.9%
15.9%
5,117
52,150
-
35,580
$21.22
RECENT NORTHEAST ATLANTA LEASES Tenant Trenton Systems
Property
Landlord
SF
Lease Type
3100 Breckinridge Blvd - Bldg 1200
TerraCap Management
50,000
New Lease
2160 Satellite Blvd
Velocis
22,751
Expansion
420 Technology Pky
Ozinus Realty
22,363
New Lease
US Lumber Wiseman Multimedia & BSI
RECENT NORTHEAST ATLANTA INVESTMENT SALES Property
Price
SF
$/SF
Date
Buyer
The Forum
$123,500,000
481,283
$256
3/18/2022
North American Properties
Huntcrest A+B
$32,400,000
162,430
$199
1/19/2022
The Runnymede Corporation
5335 Triangle Pky
$26,725,000
115,053
$232
7/11/2022
Midtown Realty Group
NORTHEAST ATLANTA PROJECTS
Gas South District
Revel
Thrive Duluth
Under Construction
Proposed
Under Construction
Convention Center, Hotel, Arena
2+ Million SF Mixed-Use
35,580 SF Office
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 | NORTHEAST ATLANTA SUBMARKET Q3 2022
IN THE MARKET • New plan and timeline for Gwinnett Place Mall redevelopment: A plan from the Gwinnett Place Community Improvement District and the Atlanta Regional Commission is officially in place to turn the 90-acre Gwinnett Place Mall into a walkable community. The plan calls for seven residential villages that would include 2,700 to 3,800 residential units, as well as office space, greenspace, and retail. The proposed timeline for the $1 billion project could see the first village break ground in 4 years’ time. • North American Properties plans new retail, residential elements to newly purchased Forum: Purchased in March of 2022, North American Properties is planning a multi-milliondollar makeover of Peachtree Corners’ The Forum. Early plans include converting a Barnes & Noble into multifamily, replacing surface parking with new retail, and creating a more walkable, friendly public space.
Gwinnett Place Mall
The Forum
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 Northeast Atlanta Listings
2 Sun
190-192 Tech Park
30 Tech Park
Spectrum
2 Sun Court
190/192 Tech Pky
30 Technology Pky S
2905/2915 Premiere Pky
3,000 SF - 15,000 SF
5,000 SF - 30,000 SF
5,000 SF - 14,600 SF
1,500 SF - 12,200 SF
Matt Fergus / Seabie Hickson Michael Howell
Matt Fergus / Seabie Hickson Hunter Henritze
Matt Fergus / Seabie Hickson Hunter Henritze
Matt Fergus / Seabie Hickson Hunter Henritze
3100 Breckinridge
Huntcrest I-IV
35 Tech Park
5390/5250 Triangle Pky
3100 Breckinridge Blvd - Bldg 1200
1735/1745/1755 N Brown Rd, 2750 Premiere Pky
35 Technology Pky S
10,300 SF - 41,579 SF
Fully Leased
2,000 SF - 11,800 SF
Fully Leased
Michael Howell / Hunter Henritze
Matt Fergus / Hunter Henritze Seabie Hickson
Hunter Henritze / Matt Fergus Seabie Hickson
Matt Fergus / Hunter Henritze Seabie Hickson
Lakeside at Peachtree Corners
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