Downtown Vacancy Continues to Rise after Negative Quarter
• Downtown Atlanta recorded -14,916 square feet of absorption lowering the year to-date-total to 87,400 square feet. This represents a significant increase of 115.4% in annual absorption for Downtown compared to 2021’s absorption figure of -567,419 square feet.
• Downtown Atlanta’s vacancy of 22% remains hindered by the recently delivered vacant Fourth Ward office building. This office building was 68.4% pre-leased by Mailchimp who is expected to occupy the space by the end of the first quarter.
• The average asking rent across all property classes in Downtown has risen by 5.28% year-over-year. However, Class A rates slightly declined this quarter to a rate of $31.42.
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 Withheld Bank of America Plaza CP Group 24,001 New Lease YKK 101 Marietta Dilweg 20,060 New Lease DRB Builders 55 Allen Plaza Lone Star Funds 17,080 New Lease RECENT DOWNTOWN LEASES 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 22.0% ‐350,000 ‐300,000 ‐250,000 ‐200,000 ‐150,000 ‐100,000 ‐50,000 0 50,000 100,000 150,000 Q2 2021Q4 2021Q2 2022Q4 2022 Absorption Vacancy Rate Science Square Labs Waldo’s Junction at Krog District 364,871 SF | Mar 2024 119,000 | Jan 2024 270,000 SF | Jun 2023 New City Properties Portman Holdings Newport RE DOWNTOWN Total Inventory SF Direct Vacancy Rate Sublease Vacancy Rate Total Vacant SF Vac Rate Current Qtr Vac Rate Prior Qtr Net Absorp Current Net Absorp YTD Deliveries Under Constr Avg Rent (FSG) Class A 13,728,672 27.0% 0.3% 3,752,385 27.3% 26.8% (67,669) 12,809 585,350 994,871 $31.42 Class B 5,429,326 10.3% 0.1% 564,371 10.4% 10.9% 58,713 84,910 66,318 - $26.47 Class C 2,183,317 17.1% 0.0% 374,097 17.1% 16.9% (5,960) (10,319) - - $21.40 Total 21,341,315 21.8% 0.2% 4,690,853 22.0% 21.8% (14,916) 87,400 651,668 994,871 $31.10 ACTIVE DOWNTOWN UNDER CONSTRUCTION PROJECTS Property Price SF $/SF Date Buyer Bank of America Plaza $380,000,000 1,351,586 $281 3/1/2022 CP Group 387 Technology Cir- Bldg 100 $85,250,000 126,760 $672 10/21/2022 Ancora Partners 100 Edgewood $29,560,000 306,000 $96 6/30/2022 Atlantic Companies RECENT DOWNTOWN INVESTMENT SALES Vacancy rate rose 2.1%
2022 ABSORPTION AND VACANCY RATE Source: CoStar Source: CoStar, LPC Research
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ATLANTA OFFICE REPORT
Q4 2022
• Peachtree Center foreclosure: Banyan Street Capital was unable to work out a debt restructuring deal resulting in Peachtree Center going back to the lender. SitusAMC, who represented the lender, entered a $127.5 million credit bid on the property. The buildings include Marquis I and II, as well as 231, 225, 229, 233 and 235 Peachtree St.
• 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 Downtown Atlanta. 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.
• Technology-driven mixed use development planned for South Downtown: Urbantec Development Partners plans to transform 10 acres of land into a mixed use development called Forge Atlanta. They plan to make the project at Ted Turner Drive and Whitehall Street a hub for life sciences companies in Atlanta.
Lincoln Downtown Listings
55 Allen Plaza
55 Ivan Allen Boulevard NE
2,500 SF - 34,909 SF
Hunter Henritze / Michael Howell
Caroline Fisher
Need More Market Intel?
Nathan Bell Research Manager229.349.4781
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.
Lincoln Property Company Southeast 3405 Piedmont Road, Suite 450 Atlanta, GA 30305 404 266 7600
its accuracy, we do not guarantee it. IN THE MARKET ATLANTA OFFICE REPORT | DOWNTOWN SUBMARKET Q4 2022
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
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.
Peachtree Center
Science Square Labs