The Atlanta Commercial Board of REALTORS® (ACBR), the largest commercial REALTOR® association in the country, released its Q1 2016 Office Brief on office market trend statistics for 30 Atlanta Office Sub Markets.
Q1 2016 Office Market Statistics
LABOR: According to the Bureau of Labor Statistics, the unemployment rate dropped 1.0 percentage points from 6.2% in January 2015 to 5.2% in January 2016. Job creation totaled 88,400 in the Atlanta metropolitan statistical area over the past year.
ABSORPTION: The Atlanta office market recorded 273,264 SF of positive absorption during the first quarter of 2016.
VACANCY: Due to an ongoing increase in demand for space, the total vacancy rate has dropped from 19.0% in Q1 2015 to 17.5% at the close of first quarter 2016. Direct vacancy rates dropped 1.7 percentage points from 18.5% to 16.8% during the same time period.
RENT: Rent growth continued to improve during first quarter 2016 especially in class A product in Buckhead, Midtown and Central Perimeter. Asking rents in all classes rose 6.1% recording $22.30 per square foot (psf) at the close of first quarter 2016 compared to first quarter 2015. Class A rents rose 7.6% over the past year, recording $24.41 psf at the close of first quarter 2016. We expect rents to continue increasing during 2016 with higher escalations in class A product in submarkets with low vacancy and construction activity.
TOP LEASE TRANSACTIONS: Major occupiers of space included Atlantic Trust, Rubbermaid, Kaiser Permanente, Kabbage, CHEP USA, Emory University, HD Supply and Wellstar. Demand for space is expected to continue as corporations continue to find Atlanta a good match for their Southeast destination.
ACBR President Steve Dils: "Atlanta experienced significant economic growth in 2015, positioning the office market for a strong performance in 2016. Professional and business service jobs were key in 2015 and I believe there will be huge growth in the healthcare, hospitality and manufacturing sectors in 2016. The tightening of the market and increased tenant demand continue to drive rent increases, yet Atlanta remains one of the most affordable metro cities to do business. Overall, I predict that the office market will continue to be strong in 2016 and will see similar levels of absorption and leasing activity as 2015."
Press Release : Infographic : Presentation Mode : Industrial Market Brief
The data in this report was compiled by data provided by Xceligent, a leading provider of verified commercial real estate information. For more information on details of this month's report, please contact the Board at 404.250.0051.