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.

• 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.