Cushman & Wakefield released third quarter 2017 statistics today for the Atlanta office market, which demonstrated another record-breaking quarter.
Overall rental rates averaged $24.72 per square foot (psf), and Class A rates in Buckhead averaged $34.27 per square foot, also a new record high. This is the first time in Atlanta’s history that a submarket has had Class A rates eclipse $34 psf for two consecutive quarters.
The overall vacancy rate in the third quarter of 2017 remained steady quarter-over-quarter at 16.7 percent. Atlanta added 218,000 square feet of deliveries in the third quarter following near-record deliveries of 1.3 million square feet in the second quarter. Absorption for the city overall totaled 67,544 square feet, with the suburban submarkets experiencing 89,000 square feet of positive absorption.
Leasing activity in the third quarter totaled more than 2.4 million square feet, with the Central Perimeter dominating for the second consecutive quarter with 500,056 square feet of leases signed.Georgia 400/North Fulton was a close second at 458,160 square feet of leasing activity, followed by the Midtown submarket with 407,728 square feet.
With 3 million square feet of office space under construction, 2017 will experience the largest amount of deliveries since 2010. Of the 1.14 million square feet of office space under construction in suburban submarkets, 91 percent is in Central Perimeter, Georgia 400/North Fulton and Cumberland/Northwest.
About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 45,000 employees in more than 70 countries help occupiers and investors optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. 2017 marks the 100-year anniversary of the Cushman & Wakefield brand. 100 years of taking our clients’ ideas and putting them into action. To learn more, visit www.cushwakecentennial.com, www.cushmanwakefield.com or follow @CushWake on Twitter.