ACBR Market Brief: Q3 2016 Office Market

The Atlanta Commercial Board of REALTORS® (ACBR), the largest commercial REALTOR® association in the country, released its Q3 2016 Office Brief on office market trend statistics for 30 Atlanta Office Sub Markets.

Q3 2016 Office Market Statistics

LABOR: According to the Bureau of Labor Statistics, the unemployment rate dropped 0.9 percentage points from 6.0% in July 2015 to 5.1% in July 2016.  The Atlanta metropolitan statistical area job creation totaled 74,800 in the Atlanta-Sandy Springs-Roswell metropolitan statistical area over the past year.

ABSORPTION: The Atlanta office market recorded 476,084 square feet (sf) of positive absorption during 3Q 2016 and 869,192 sf year-to-date.

VACANCY: Due to an ongoing increase in demand for space, the total vacancy rate has dropped from 17.6% in 3Q 2015 to 17.0% at the close of 3Q 2016.  Direct vacancy rates dropped 0.8 percentage points from 17.0% to 16.2% during the same time period.

RENT: Weighted average rent growth continued to improve during 3Q 2016 especially in Class A product in Buckhead, Midtown and Central Perimeter.  Weighted average asking rents in all classes rose 5.2% recording $22.45 per square foot (psf) at the close of 3Q 2016 compared to 3Q 2015.  Class A weighted average rents rose 4.9% year-over-year, recording $25.70 psf at the close of 3Q 2016.  Class B rents rose 6.5% year-over-year, recording $19.11 psf at the close of 3Q 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 Genuine Parts, Wellstar, N3, AFLAC and Power Engineers.

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.

Tuesday, October 04, 2016

About the Atlanta Commercial Board of REALTORS®

The Atlanta Commercial Board of REALTORS® (ACBR) is the voice of commercial real estate in Metro Atlanta and has been an instrumental factor in the growth of real estate in the state of Georgia for more than a century. As the largest Commercial REALTOR® Association in Georgia, ACBR serves as a central source of information for its members by focusing on real estate education, the promotion of professionalism in the industry and representing members with legislative initiatives to create positive change for the real estate community. Membership in ACBR is the hallmark of quality, professionalism and production.

About Xceligent

Xceligent, Inc. is the fastest growing provider of commercial real estate information in the country. Headquartered in Independence (Kansas City), Missouri, Xceligent is the preferred industry partner for proactively researched commercial real estate information and marketing. Over its 14 year history, Xceligent has developed and refined revolutionary research processes that allow the company to offer a superior value proposition to the brokerage, development, government, EDC, appraisal and lending communities.

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