Buckhead Class A Rates Surpass $34 PSF, also an All-Time High
Cushman & Wakefield released second quarter 2017 statistics today for the Atlanta office market, which demonstrated continued growth and record-breaking overall rental rates. Buckhead, Atlanta’s leading office market, reached Class A rents of $34.63 per square foot (psf), marking the first time in Atlanta’s history that Class A rates have eclipsed $34 psf.
During the second quarter of 2017, overall average rents eclipsed last quarter’s record of $23.51 per square foot, reaching a new record of $24.10 psf, an increase of $0.59 psf. Additionally, overall net absorption rebounded in the second quarter from last quarter’s negative absorption, with 405,038 square feet of positive net absorption. The Northwest submarket experienced 210,124 square feet of positive net absorption, followed by Midtown with 153,167 square feet absorbed.
While over 1.3 million square feet of leases were signed in the second quarter, more than 3.1 million square feet of office product is underway, the largest of which is Coda Tech Square at 760,000 square feet. In the second quarter alone, more than 1.3 million square feet of office space was delivered, the largest amount since the first quarter of 2010. The most significant completion was the delivery of Three Alliance in Buckhead, a 506,000-square-foot Class A building.
The Atlanta market will continue to relieve the tightening of space with the delivery of 2.5 million square feet of speculative product over the next two years,which will give companies seeking office space in Atlanta more options, but pre-leasing activity is expected to increase as the developments progress.
Secord-Quarter 2017 Highlights:
- Absorption rebounded this quarter with 405,038 sf of positive net absorption, however, vacancy increased to 16.7 percent due to over 1.3 million sf of deliveries.
- Overall rental rates continue to break records at an all-time high of $24.10.
- Buckhead leads all submarkets with the highest Class A rate of $34.63, eclipsing the $34 mark for the first time in history.
- Atlanta experienced the most construction deliveries since 2010 with 1.3 million sf of new space added.
About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 45,000 employees in more than 70 countries help occupiers and investors optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. 2017 marks the 100-year anniversary of the Cushman & Wakefield brand. 100 years of taking our clients’ ideas and putting them into action. To learn more, visit www.cushwakecentennial.com, www.cushmanwakefield.com or follow @CushWake on Twitter.