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

• 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.