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Midtown Leads All Submarkets in Absorption for 2022
• After leading the market in absorption for two consecutive quarters, Midtown recorded 36,618 square feet in absorption ranking fourth amongst submarkets in Q4. However, from an annual standpoint, Midtown prevailed to be the strongest submarket with 844,500 square feet absorbed in 2022.
• Midtown vacancy remains virtually flat with a slight decrease of 10 basis points from the previous quarter to now stand at 21.7%. Despite the positive absorption this quarter, vacancy remains in an elevated position due to the handful of largely vacant deliveries in Q3. This elevated vacancy will likely continue into the mid-year of 2023 when large block occupancies by tenants such Invesco’s 301,573 square feet move in at Midtown Union occurs.
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• Midtown led the way this year in construction activity with 1,073,036 square feet in deliveries and 1,393,428 square feet currently underway.
in absorption year-to-date
• 1180 Peachtree and Atlantic Yards trade: July saw two big trades in Midtown as 1180 Peachtree was acquired by Piedmont Office Realty Trust and Atlantic Yards was purchased by Global Atlantic Financial Group, a KKR subsidiary. 1180 Peachtree traded for $472 million, or $683/ sf. Atlantic Yards sold for $385 million, or $734/sf – a lower figure than predicted when the asset first hit the market.
• Adobe set to open office in Atlanta: Adobe, the computer software company known for applications such as Photoshop and InDesign has inked a 6,000 square foot lease in Colony Square. Adobe currently has approximately 150 to 200 employees residing in Metro Atlanta that operate under a hybrid work model. This buildout will consist of converting a retail space into a small office that will serve as an area for employees to gather as well as attract future talent.
• One Atlantic Center hits the market: Five years after buying One Atlantic, Starwood Capital Group has put the building on the market. While the listing price is not disclosed, it was previously purchased by Starwood Capital Group for $318 million or $288.91 per square foot. This 1,101,022 square foot building is 92.4% leased.
