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 :
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.