Northeast Atlanta Submarket Q4 2022
Northeast Atlanta Ends the Year With Lowest Vacancy Amongst Major Submarkets
• Northeast Atlanta saw negative absorption of 20,347 square feet in Q4. This absorption marks the second negative quarter for the submarket and results in an annual absorption figure of 52,289 square feet. This absorption ranks fourth among all suburban submarkets in 2022.
• The vacancy rate in Northeast Atlanta remains the lowest amongst all major submarkets at just 15.8%, this represents a slight uptick from the previous quarter. Furthermore, Class A offices declined in vacancy for the fourth straight quarter.
• Sublease availability, while not as concerning as other submarkets, continues to rise in Northeast Atlanta. Nearly 100,000 square feet in sublease availability was added by Comcast at Corners Office Park this quarter. As a result, sublease availability has now risen by 50 basis points to 2.4%.
Vacancy drops 30 basis points 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.
Tenant Property Landlord SF Lease Type Trenton Systems 3100 BreckinRidge- Bldg 200 TerraCap Management 50,000 New Lease US Lumber 2160 Satellite Blvd Velocis 22,751 Expansion Wiseman Multimedia & BSI 420 Technology Pky Ozinus 22,363 New Lease RECENT NORTHEAST ATLANTA LEASES 14% 15% 16% 17% 18% 19% 20% ‐200,000 ‐150,000 ‐100,000 ‐50,000 0 50,000 100,000 150,000 200,000 250,000 Q2 2021 Q4 2021 Q2 2022 Q4 2022 Absorption Vacancy Rate NORTHEAST Total Inventory SF Direct Vacancy Rate Sublease Vacancy Rate Total Vacant SF Vac Rate Current Vac Rate Prior Qtr Net Absorp Current Net Absorp Prior Qtr Deliveries Under Constr Avg Rent (FSG) Class A 6,620,699 20.7% 0.8% 1,422,246 21.5% 21.6% 6,662 53,087 - 35,580 $22.62 Class B 10,368,909 10.5% 1.1% 1,199,722 11.6% 11.4% (20,256) 10,858 - - $19.74 Class C 1,968,233 19.4% 0.0% 381,417 19.4% 19.0% (6,753) (11,656) - - $21.54 Total 18,957,841 15.0% 0.9% 3,003,385 15.8% 15.7% (20,347) 52,289 - 35,580 $21.25 Property Price SF $/SF Date Buyer The Forum $123,500,000 481,283 $256 3/18/2022 North American Properties 5335 Triangle Pky $26,725,000 115,053 $232 7/11/2022 Midtown Realty Group Huntcrest A+B $32,400,000 162,430 $199 1/19/2022 The Runnymede Corporation RECENT NORTHEAST ATLANTA INVESTMENT SALES
ABSORPTION AND VACANCY RATE Source: CoStar Source: CoStar, LPC Research
ATLANTA OFFICE REPORT Gas South District Revel Thrive Duluth Under Construction Proposed Under Construction Convention Center, Hotel, Arena 2+ Million SF Mixed-Use 35,580 SF Office NORTHEAST ATLANTA PROJECTS
• Gas South District nears new deal for mixed-use destination: The Gwinnett Convention and Visitors Bureau are looking to lease land to a development team in hopes of creating a mixed-use entertainment hub at Gas South District. The mission is to create a destination similar to The Battery that convinces people to stay around the site. The preliminary plan involves redeveloping roughly 60 acres of surface parking into offices, shops, and apartments. This news follows the announcement of Gas South District’s best financial year.
• Vision for former State Farm Campus at Johns Creek unveiled: The developer behind Avalon, Mark Toro, has announced plans for the former State Farm campus in Johns Creek. Recently plans were filed to turn the 43acre site into a mixed-use development called Medley. This redevelopment will consist of 110,000 square feet of office space, at least 150,000 square feet of retail, and entertainment concepts. This project will become part of a larger vision for creating a 192-acre town center.
Lincoln Northeast Atlanta Listings
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nbell@lpc.com
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
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 | NORTHEAST ATLANTA SUBMARKET Q4 2022
2 Sun 190-192 Tech Park 30 Tech Park Spectrum 2 Sun Court 190/192 Tech Pky 30 Technology Pky S 2905/2915 Premiere Pky 3,000 SF - 15,000 SF 6,500 SF - 30,000 SF 6,000 SF - 14,600 SF 1,500 SF - 12,200 SF
Matt Fergus / Seabie Hickson Michael Howell
Matt Fergus / Seabie Hickson Hunter Henritze
Matt Fergus / Seabie Hickson Hunter Henritze
Matt Fergus / Seabie Hickson Hunter Henritze
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.
Lakeside at Peachtree Corners Huntcrest I-IV 35 Tech Park 5390/5250 Triangle Pky 1735/1745/1755 N Brown Rd, 2750 Premiere Pky 35 Technology Pky S 8,372 SF - 41,579 SF 2,000 SF - 21,400 SF Fully Leased Michael Howell
Henritze
Henritze
Gas South District Medley
/ Hunter
Hunter
/ Matt Fergus Seabie
Hickson
Matt Fergus / Hunter Henritze Seabie Hickson