Downtown Atlanta’s Office Market Report – 1st Quarter 2010
Downtown Office Market at a Glance:
• For the third quarter in a row, Downtown’s occupancy decreased. First quarter leasing activity in the submarket was limited mostly to renewals. The largest move-out contributing to the negative absorption was Boston Consulting which moved from the Bank of America Tower to the new 1075 Peachtree building in Midtown.
• Thanks to the absence of development activity and only slight shifts in occupancy, Downtown’s vacancy rate over the past two and a half years has shown little movement; averaging between 14 to 16%.
• Downtown remains one of Atlanta’s most affordable submarkets heading into the next recovery.
In the News:
• Downtown office market could catch more government deals: A number of office deals for government entities are currently floating around the Atlanta market and Downtown stands to land the majority of them. Examples include the U.S. Passport Office seeking 18,000 SF and the U.S. Department of Housing and Urban Development seeking 150,000 SF. Most recently, a couple of office leases were signed by the Federal Defender Services Program and Fulton County’s Office of the Public Defender. A significant amount of Downtown office space is dedicated for government use. It makes sense the submarket would be the front runner for new office space requirements from the city, county, state and federal governments.
Total Square Feet: 25,600,325
Vacancy Rate: 15.3%
YTD Net Absorption: (61,854)
YTD Deliveries: 0
Under Construction: 0
Avg. Class A Rate: $19.97
40 Marietta (‘09 Foreclosure.) sold for $7,000,000 or $57.14/RSF
75/95 Poplar St. (‘09) sold for $3,250,000 or $49.68/RSF
239 Ivan Allen Bl. (‘09) sold for $2,500,000 or $255.10/RSF
Hawkins Parnell Thackston Young leased 71,000 RSF at SunTrust Plaza
Fulton Co. Office of Public Defender leased 57,822 RSF at 55 Park Place
Newcomb & Boyd leased 42,000 RSF at SunTrust Plaza