West Midtown DEEP DIVE Q2 2022 Report
Leasing Solid, Construction Booming in West Midtown
West Midtown saw positive absorption of 162,311 square feet in Q2 of 2022, the sixth-consecutive positive absorption quarter for the growing submarket. Most of the Q2 gains were thanks to tenants moving into recently build Class A product: Ford Motor Company took 15,417 sf at 8West, Outreach Corporation occupied 32,927 sf at Star Metals, and MacDermid Graphic Solutions and The 3rd Spot moved into 45,000 and 26,000 sf respectively at The Works. This saw the submarket’s vacancy rate fall 260 basis points (2.6%) from 24.1% to 21.5%. The Class A vacancy is still at an unnaturally high mark of 33.3% thanks to multiple spec deliveries over the past year. Due to its small inventory, West Midtown is easily affected by vacant deliveries. There is no sign of construction slowing however, as there are nearly 1.3 million square feet under construction in the submarket representing 39% of the existing inventory.
WEST MIDTOWN
Total Inventory SF
Direct Vacancy Rate
Sublease Vacancy Rate
Total Vacant SF
Vac Rate Q2 ‘22
Vac Rate Q1 ‘22
Net Absorp Q2 ‘22
Net Absorp YTD
Deliveries YTD
Under Constr
Avg Rent (FSG)
Class A
1,371,571
29.6%
3.7%
456,185
33.3%
35.7%
143,380
248,993
100,000
1,239,143
$44.36
Class B
1,481,089
12.0%
1.3%
195,946
13.2%
14.3%
15,268
11,997
-
40,000
$32.79
Class C
432,311
4.9%
0.0%
20,987
4.9%
5.7%
5,500
5,500
-
-
$25.74
Total
3,284,971
19.4%
2.1%
706,443
21.5%
24.1%
162,311
264,653
100,000
1,279,143
$42.22
ACTIVE WEST MIDTOWN UNDER CONSTRUCTION PROJECTS
1 M
O
O
RES
RD MILL
185,000 SF
W WESLEY RD NW
P E AC H T R E
E
B AT
T L E AV
Allied Studios Aug 2022
Jamestown E
2
Westside Paper 223,851 SF
Aug 2022
Third & Urban
CH
NORTHSIDE DR
1
3
209,174 SF
T AT
AH
MA
O OCHEE AV E
Interlock Office Phase II Aug 2023
S.J. Collins
NW
RIE
765 Echo 274,976 SF
LM
NW
EL
D LV
H OW
AB TT
4
Jun 2023
ILL
17TH ST
RD
Lincoln Property Company 14TH ST
3
2
5 10TH ST
4 LD LEE HOLLOWELL NA DO
745 Echo 21,273 SF
Jun 2023
Lincoln Property Company
5 AVE NW TH NOR
6
6
Science Square Labs 364,871 SF
Mar 2024
Trammell Crow Company
1,2 79,143 sf under construction lpcsoutheast.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.
West Midtown DEEP DIVE
Q2 2022 REPORT
IN THE MARKET
• 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 West Midtown. 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. • 765 Echo set to top out in Q3: Construction is well underway at Lincoln Property Company’s Echo Street West development, with 765 Echo set to top out around late-September 2022. The four-story 765 Echo is the main office component at 274,976 square feet. The end of Q2 2023 is still being targeted as the building’s delivery date. • West Midtown drawing technology and innovation centers from national companies: Airbnb, Nike, and Ford Motor Company are among the firms that have announced they are establishing new technology and innovation centers in West Midtown. Airbnb is establishing an initial office The Interlock, while Nike has its sights set on the Star Metals Offices for its technology center. Ford most recently has taken 12,000 square feet for its innovation lab at 8West.
Science Square Labs
765 Echo
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.
Lincoln West Midtown Listings
Echo Street West
Complex West Midtown
Inland Tract
Puritan Mill
Ellsworth Office Lofts 1510 Ellsworth Industrial Blvd
745 & 765 Echo St NW
1175 Chattahoochee Ave
1218 & 1236 Menlo Dr
916 & 950 Joseph E. Lowery Blvd NW
21,000 SF - 300,000 SF
7,000 SF - 18,000 SF
8,000 SF - 28,000 SF
1,700 SF - 16,400 SF
3,700 SF - 24,812 SF
Michael Howell / Hunter Henritze Caroline Fisher
Caroline Fisher / Michael Howell Hunter Henritze
Caroline Fisher / Michael Howell Hunter Henritze
Caroline Fisher / Michael Howell Hunter Henritze
Caroline Fisher / Michael Howell Hunter Henritze
Need More Market Intel?
Spencer Papciak Research Manager 678.498.7676 spapciak@lpc.com
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. 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