ATLANTA OFFICE REPORT
Northwest Atlanta Submarket
Q3 2022
Cumberland is the Driving Force Behind Positive Q3 for Northwest Atlanta
ABSORPTION AND VACANCY RATE
• Northwest Atlanta saw positive absorption of 77,655 square feet across all property classes in Q3 of 2022. The headlines moves include the Georgia Division of Family and Children Services taking 40,000 square feet at 1090 Northchase, Zwick/Roell occupying 27,000 square feet at 995 Greers Chapel Rd, and Soliant moving into 22,969 square feet at Galleria 200.
300,000
Class A
19%
200,000
18%
100,000
17% 0 16%
• Within the Northwest Atlanta office market, there is a divide on yearto-date performance between the micro-markets of Cumberland/ Galleria and Kennesaw/Town Center. In 2022, Cumberland/Galleria has seen positive absorption of 267,238 sf with a vacancy rate falling 1.5%. Conversely, Kennesaw/Town Center has seen negative absorption of 98,012 sf with a vacancy rate that has risen 1.9% from 13.6% in Q4 of 2021 to 15.5% in Q3 of 2022. NORTH WEST
Vacancy rate has fallen 0.9% since20%Q1
‐100,000
15%
‐200,000 ‐300,000
14%
Q1 2021
Q3 2021 Absorption
Q1 2022
Q3 2022
Vacancy Rate
13%
Source: CoStar
Total Inventory SF
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)
15,705,356
19.1%
1.1%
3,172,262
20.2%
20.4%
30,224
141,402
-
-
$29.99
Class B
11,712,234
15.8%
1.1%
1,982,359
16.9%
17.2%
33,517
(4,225)
-
43,367
$22.31
Class C
1,909,337
4.2%
0.0%
80,655
4.2%
5.0%
13,914
(28,895)
-
-
$18.17
Total
29,326,927
16.8%
1.0%
5,235,276
17.9%
18.1%
77,655
108,282
-
43,367
$27.12
TOP NORTHWEST ATLANTA LEASES Q3 2022 Tenant Cleveland Electric Company EyeQ Monitoring
Property
Landlord
SF
Lease Type
Northcreek 100
GEM Realty Capital
51,042
New Lease
Wildwood Center
Vision Properties
23,681
New Lease
Parkway One
The Simpson Organization
20,985
New Lease
The Conlon Company
RECENT NORTHWEST ATLANTA INVESTMENT SALES Property Towers at Wildwood Plaza
Price
SF
$/SF
Date
Buyer
$109,500,000
719,030
$153
9/23/2022
The Simpson Organization
Cumberland Center
$34,200,000
111,185
$309
8/16/2021
SilverCap Partners
Parkwood Point
$29,500,000
219,660
$134
6/23/2022
Balfour Pacific
NORTHWEST ATLANTA PROPOSED PROJECTS
Galleria 500
200 City View
Proposed
450,000 SF | Proposed
Piedmont Office Realty Trust
Pope & Land
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 | NORTHWEST ATLANTA SUBMARKET Q3 2022
IN THE MARKET • The Towers at Wildwood acquired by The Simpson Organization: The 719,030 square foot buildings were purchased for $109,500,000 (or $153 per square foot) on September 23rd by The Simpson Organization. Seller America’s Capital Partners purchased the property 8 years ago for $114 million. Wildwood is currently 65% leased. • Truist to build new tower at The Battery: Truist Securities will be moving 1,000 jobs from Buckhead to The Battery in 2024. Truist will be relocating their Securities division from the Atlanta Financial Center, where they currently occupy around 150,000 square feet. Truist’s lease is set to expire in 2025, with their new digs scheduled for a 2024 delivery. • New Development Could Add Mixed-Use Project Near Truist Park: RASS Associates, a Roswell-based development company, is looking to build an 8-acre project at 2800 Spring Road, just a stone’s throw away from The Battery. The project is set to include a 350-unit apartment building, a 200-key hotel, and 30,000 square feet of retail.
The Towers at Wildwood
Truist Park
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
Barrett Summit
Chastain Center
Cobb Corporate Center
Chastain Meadows
3400 Overton
The Gold Building
1990 Vaughn Rd
60 Chastain Center Blvd
350, 375, 400, 425 & 450 Franklin Rd
222, 3330 & 3380 Chastain Meadows Pky
3400 Overton Park Dr
1945 The Exchange SE
10,000 SF - 180,000 SF
3,000 SF - 11,000 SF
7,000 SF - 15,000 SF
10,000 SF - 43,831 SF
100% Leased
2,100 SF
Seabie Hickson / Matt Fergus
Michael Howell / Matt Fergus
Matt Fergus / Hunter Henritze / Seabie Hickson
Michael Howell / Caroline Fisher / Robert deGollian
Michael Howell / Hunter Henritze / Caroline Fisher
Matt Fergus / Hunter Henritze / 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