The Atlanta Commercial Board of REALTORS® (ACBR), the largest commercial REALTOR® association in the country, released its Q1 2017 Office Brief on office market trend statistics for 30 Atlanta Office Sub Markets.
Q1 2017 Office Market Statistics
LABOR: According to the Bureau of Labor Statistics, the unemployment rate rose 0.2 percentage points from
5.1% in January 2016 to 5.3% in January 2017. The unemployment rate increased due to more people
looking for work and compares favorably to Georgia (5.5%) and higher than the US (4.8%). The Atlanta
metropolitan statistical area nonfarm job creation totaled 96,800 in the Atlanta-Sandy Springs-Roswell
metropolitan statistical area over the past year. Office using jobs (information, professional and
business services and financial activities) added 35,100 jobs during the past year.
ABSORPTION: The Atlanta office market recorded a negative 182,009 square feet (sf) of overall absorption during 1Q
2017. Direct absorption totaled negative 13,178 sf. Absorption during the first quarter was off to a slow
start for 2017. Major occupancies by State Farm, Anthem, Regus, Kore Telematics and Rock 10 were not
able to overcome vacancies by Coca Cola, State Farm sublease and several small to mid-sized
companies. Absorption is expected to increase during the rest of 2017. Global Payments, State Street
Corp., Racetrack, Anthem, and Equifax are all expected to occupy more than 50,000 sf during 2017. As
the Class A vacancy rate continues to drop, demand for space in Class B buildings is expected to
increase. Currently, only ten existing Class A buildings can accommodate a user larger than 100,000 sf.
Demand for space is expected to continue as corporations continue to find Atlanta a good match for
their Southeast destination.
VACANCY/RENTS: Weighted average rent growth continued to improve during 1Q 2017 especially in Class A properties in
Buckhead, Midtown and Central Perimeter. Weighted average asking rents in all classes rose 5.0%
recording $23.10 per square foot (psf) at the close of 1Q 2017 compared to 1Q 2016. Class A weighted
average rents rose 6.2% year-over- year, recording $26.20 psf at the close of 1Q 2017. Class B rents rose
1.8% year-over- year, recording $20.33 psf at the close of 1Q 2017. We expect rents to continue
increasing during 2017 with higher escalations in Class A buildings in submarkets with low vacancy and
construction activity. Class B weighted average rents are expected to follow suit as options in Class A
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.