Northwest Atlanta Submarket
Northwest Atlanta Vacancy Remains Low Despite Increased Subleasing Activity
• Northwest Atlanta recorded negative absorption of -13,614 square feet this quarter to end the year. The largest move outs affecting absorption include Wells Fargo at 360 Interstate North (25,188 sf), Old Aerospace at 300 Barrett (25,000 sf), and Calibrun at Overlook III (24,568 sf). On the other hand, some of this negative activity was offset by move ins from Southwire at Four ballpark Center (23,135 sf), EyeQ Monitoring at Wildwood Center (23,681 sf), and several smaller block tenants.
• Overall vacancy in Northwest Atlanta increased marginally this quarter to a rate of 18.1% in response to the amount of sublease space added to the submarket recently. Since Q3, sublease vacancy has risen by 30 basis points or about 68,000 square feet. Furthermore, as a result of Home Depot placing roughly 600,000 square feet on the market for sublease, Class B sublease availability has doubled from 4.3% to 8.6%.
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 Sterling Seacrest Pritchard 2500 Cumberland Noro Management 63,600 Extension Nobis Works Pennant Point Pope & Land Real Estate 24,672 New AKKR Fund Management Company, LP Galleria 300 Piedmont Office Realty Trust, Inc. 23,888 New TOP NORTHWEST ATLANTA LEASES Q4 2022 13% 14% 15% 16% 17% 18% 19% 20% ‐300,000 ‐250,000 ‐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 Galleria 500 200 City View Circle 75 & Windy Ridge Parkway 1,000,000 SF | Proposed 497,777 SF | Proposed 250,000 SF | Proposed Piedmont Office Realty Trust Pope & Land Braves Development Company NORTH WEST 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 14,461,864 18.6% 1.2% 2,854,890 19.7% 19.9% 23,643 168,223 - - $30.43 Class B 12,628,927 16.8% 1.6% 2,326,420 18.4% 18.0% (54,758) (88,324) - 43,367 $24.04 Class C 2,030,280 4.1% 0.0% 82,661 4.1% 4.9% 17,501 (11,394) - - $20.60 Total 29,121,071 16.8% 1.3% 5,263,971 18.1% 18.0% (13,614) 68,505 - 43,367 $27.51 NORTHWEST ATLANTA PROPOSED PROJECTS Property Price SF $/SF Date Buyer Towers At Wildwood Plaza $109,500,000 719,030 $197 9/23/2022 Opal Holdings Powers Ferry Landing East $16,100,000 149,376 $107 12/21/2022 Triple Double Real Estate Cumberland Center $34,200,000 111,185 $309 8/16/2021 SilverCap Partners RECENT NORTHWEST ATLANTA INVESTMENT SALES 68,505 SF
ABSORPTION AND VACANCY RATE Source: CoStar Source: CoStar, LPC Research
of net absorption in 2022
Q4 2022 ATLANTA OFFICE REPORT
• Truist to build new tower at The Battery: Truist Securities will be moving 1,000 jobs from Buckhead to The Battery in 2024. Truist will be relocating their Securities division from the Atlanta Financial Center, where they currently occupy around 150,000 square feet. Truist’s lease is set to expire in 2025, with their new digs scheduled for a 2024 delivery.
• The Towers at Wildwood acquired by The Simpson Organization: The 719,030 square foot buildings were purchased for $109,500,000 (or $153 per square foot) on September 23rd by The Simpson Organization. Seller America’s Capital Partners purchased the property 8 years ago for $114 million. Wildwood is currently 65% leased.
• Home Depot lists more than 600,000 SF for sublease: Home Depot has decided to list over 600,000 square feet for sublease across seven different office buildings in Cobb County. This move follows the trend of many other companies looking to consolidate their footprint for a handful of reasons. The Fortune 500 company will continue to operate at their headquarters located in Cobb County.
Lincoln Northwest Atlanta Listings
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Lincoln Property Company Southeast 3405 Piedmont Road, Suite 450 Atlanta, GA 30305 404 266 7600 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. Nathan Bell Research
404.689.3216 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 its accuracy, we do not guarantee it. IN THE MARKET ATLANTA OFFICE REPORT | NORTHWEST ATLANTA SUBMARKET Q4 2022
Manager
Building 1990 Vaughn Rd 60 Chastain Center Blvd 350, 375, 400, 425 & 450 Franklin Rd 222, 170, 33880 Chastain Meadows Pky 3400 Overton Park Dr 1945 The Exchange SE 10,000-180,000 SF 3,000 SF - 11,000 SF 7,000 SF - 17,000 SF 10,000 SF - 43,831 SF Fully Leased 2,000 SF
Barret Summit Chastain Center Cobb Corporate Center Chastain Meadows 3400 Overton The Gold
Seabie Hickson / Matt Fergus
Michael Howell / Matt Fergus
Matt Fergus / Hunter Henritze Seabie Hickson
Michael Howell/ Caroline FIsher / Robert deGolian
Michael Howell / Hunter Henritze / Caroline Fisher
Matt Fergus / Hunter Henritze Robert deGolian
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.
Circle 75 & Windy Ridge Parkway
Towers at Wildwood Plaza