West Midtown DEEP DIVE Q3 2022 Report
Leasing Strong, Three Q3 Deliveries for West Midtown
West Midtown saw positive absorption of 55,640 square feet in Q3 of 2022, the sixth quarter of positive absorption in the last seven for the growing submarket. All of the Q3 gains took place in Class A properties, which have seen positive absorption of 327,805 square feet year-to-date. As was the case with much of the Atlanta office market, West Midtown saw its vacancy rate rise despite experiencing positive absorption thanks to the delivery of new product. Allied Studios (two buildings totaling 185,000 sf) and Westside Paper (223,851 sf) both delivered in Q3. Both buildings at Allied Studios are 100% leased, however will not be occupied by their tenants until Q4 of 2022 at the earliest. Westside Paper is 0% leased, thus resulting in over 400,000 square feet of vacant space hitting a submarket that is easily affected by vacant deliveries thanks to its small overall inventory.
WEST MIDTOWN
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)
Class A
1,516,571
33.3%
3.3%
555,698
36.6%
35.7%
78,812
327,805
323,851
902,870
$44.30
Class B
1,469,297
14.9%
1.5%
241,649
16.4%
12.5%
(22,461)
6,294
40,000
-
$32.78
Class C
537,554
4.0%
0.0%
21,698
4.0%
3.9%
(711)
2,952
-
-
$28.61
Total
3,523,422
21.2%
2.1%
819,045
23.2%
20.7%
55,640
337,051
508,851
902,870
$42.16
ACTIVE WEST MIDTOWN UNDER CONSTRUCTION PROJECTS
1 M
O
O
RES
RD MILL
209,174 SF
W WESLEY RD NW
P E AC H T R E
E
B AT
T L E AV
Interlock Office Phase II Aug 2023
S.J. Collins E
2
926 Brady Ave 32,578 SF
Apr 2023
Clarion Partners
CH
NORTHSIDE DR
3
274,976 SF
T AT
AH
MA
O OCHEE AV E
765 Echo Jun 2023
Lincoln Property Company
NW
RIE
Jun 2023
17TH ST
ILL
Lincoln Property Company
RD
2
14TH ST
1
5 10TH ST
3
Science Square Labs 364,871 SF
Mar 2024
Trammell Crow Company
4 LD LEE HOLLOWELL NA
DO
745 Echo 21,273 SF
LM
NW
EL
D LV
H OW
AB TT
4
AVE NW TH NOR
5
902,8 70 sf under construction 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.
West Midtown DEEP DIVE
Q3 2022 REPORT
IN THE MARKET
• 765 Echo tops out: The main office building of Lincoln Property Company’s Echo Street West development in the English Avenue neighborhood has topped out. 765 Echo is 274,976 square feet and stands four stories tall. The end of Q2 2023 is being targeted as the building’s delivery date. • Science Square Labs breaks ground: Set to deliver in 2024, a joint life sciences venture from Georgia Tech and Trammell Crow has broken ground in West Midtown. Located at the intersection of Northside Dr and Cameron M Alexander Blvd, Science Square Labs will bring 360,000 square feet of life sciences space to the Atlanta market. • West Midtown drawing technology and innovation centers from national companies: Airbnb, Nike, and Ford Motor Company are among the firms that have announced they are establishing new technology and innovation centers in West Midtown. Airbnb is establishing an initial office The Interlock, while Nike has its sights set on the Star Metals Offices for its technology center. Ford most recently has taken 12,000 square feet for its innovation lab at 8West.
765 Echo
Science Square Labs
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 West Midtown Listings
Echo Street West
Complex West Midtown
Inland Tract
Puritan Mill
Ellsworth Office Lofts 1510 Ellsworth Industrial Blvd
745 & 765 Echo St NW
1175 Chattahoochee Ave
1218 & 1236 Menlo Dr
916 & 950 Joseph E. Lowery Blvd NW
21,000 SF - 300,000 SF
7,000 SF - 18,000 SF
8,000 SF - 10,000 SF
1,700 SF - 16,400 SF
3,700 SF - 24,812 SF
Michael Howell / Hunter Henritze Caroline Fisher
Caroline Fisher / Michael Howell Hunter Henritze
Caroline Fisher / Michael Howell Hunter Henritze
Caroline Fisher / Michael Howell Hunter Henritze
Caroline Fisher / Michael Howell Hunter Henritze
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