Central Perimeter Leasing Slows to End the Year
• Central Perimeter, similar to other submarkets, experienced a slowdown in leasing activity to end the year with just 122,257 square feet in leases signed in Q4. As a result, the submarket recorded -49,605 square feet in absorption bringing the year-to-date total to 344,623 square feet. Despite this slow end to the year, Central Perimeter absorption ranks second among submarkets in 2022 only behind Midtown.
• The vacancy rate in Central Perimeter increased slightly by 20 basis points in Q4 bringing the year end rate to 23.3%.
• Looking ahead, Central Perimeter will look to regain its postitive foothold in absportion with large block tenants anticipated to occupy space at Campus 244 such as Transportation Insight (174,400 sf) and Insight Global (133,700 sf).
1.7% decline in vacancy in 2022
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
Tenant Property Landlord SF Lease Type Larkin 211 Perimeter Center Pky NE GID Investment Advisors LLC 21,889 Sublease Recteq 1155 Perimeter Ctr W Piedmont Office Realty Trust, Inc. 9,064 New Lease Aston Carter 211 Perimeter Center Pky NE GID Investment Advisors LLC 8,539 New Lease TOP CENTRAL PERIMETER LEASES Q4 2022 16% 18% 20% 22% 24% 26% 28% ‐800,000 ‐600,000 ‐400,000 ‐200,000 0 200,000 400,000 600,000 Q2 2021 Q4 2021 Q2 2022 Q4 2022 Absorption Vacancy Rate CP Total Inventory SF Direct Vacancy Rate Sublease Vacancy Rate Total Vacant SF Vac Rate Current Qtr Vac Rate Prior Qtr Net Absorp Q4 Net Absorp YTD Deliveries Under Constr Avg Rent (FSG) Class A 19,499,815 24.0% 2.0% 5,068,499 26.0% 25.8% (33,852) 341,780 - 35,656 $31.90 Class B 5,184,199 12.3% 1.1% 698,870 13.5% 13.3% (7,676) 41,201 - - $23.19 Class C 1,027,191 21.8% 0.7% 231,000 22.5% 21.7% (8,077) (38,358) - - $24.61 Total 25,711,205 21.6% 1.8% 5,998,369 23.3% 23.1% (49,605) 344,623 - 35,656 $30.89 CENTRAL PERIMETER UNDER CONSTRUCTION PROJECTS Property Price SF $/SF Date Buyer 900 Ashwood $34,500,000 207,291 $166 2/15/2022 Velocis Perimeter Summit (1001,2002,4004) $247,499,999 1,357,290 $182 12/20/2022 Spear Street Capital River Ridge $18,255,000 178,941 $101 8/8/2022 Insignia Realty RECENT CENTRAL PERIMETER INVESTMENT SALES
ABSORPTION AND VACANCY RATE Source: CoStar Source: CoStar, LPC Research 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
ATLANTA OFFICE REPORT
Q4 2022
• Central Perimeter office buildings trade hands: Spear Street Capital recently acquired buildings 1001, 2002, and 4004 at Perimeter Center for roughly $250 million. Collectively the buildings sit at a 40% vacancy rate and include major tenants such as Northside Hospital, Aprio, and Rooms To Go.
• 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. The first phase of High Street is planned to have 312,000 square feet of office space, 150,000 square feet of retail, and a multi-family component.
• 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.
Lincoln Central Perimeter Listings
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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. Nathan Bell Research
229.349.4781 nbell@lpc.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. IN THE MARKET ATLANTA OFFICE REPORT | CENTRAL PERIMETER SUBMARKET Q4 2022
Manager
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 - 61,600 SF 2,000 SF - 15,000 SF 2,754 SF - 19,436 SF
Matt
Fergus / Hunter Henritze Seabie Hickson
Caroline Fisher / Hunter Henritze Michael Howell
Matt Fergus / Michael Howell Seabie Hickson
Caroline Fisher / Hunter Henritze Michael Howell / Robert Degolian
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.
Perimeter Center
Campus 244