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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.
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• 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%.
• 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.
