ATLANTA OFFICE MARKET
The Atlanta Office market ended the third quarter 2011 with a
vacancy rate of 19.6%. This rate represents a slight decrease
from the previous quarter rate of 19.8%. This decrease
occurred in a quarter where Atlanta saw 309,022 SF in net
absorption and one building, 4,000 SF, deliver to the market.
Quoted rental rates ended the quarter at $19.08 PSF, down
from last quarter rate of $19.19 PSF. Currently there is
765,077 SF of office product under construction in
believe the European
debt crises will
remain a threat to
the global economy
into 2012. Lower oil
prices and the recent end to Japanese supply disruptions
stemming from the March earthquake have lifted
impediments to consumer spending, ending the third quarter
better-than-expected. However, uncertainty will impact the
confidence of business leaders and consumers dampening
future business investment and hiring.
Atlanta’s outlook for the remainder of 2011 is optimistic. The
healthcare, education and supply chain/distribution industries
continue to grow for Atlanta, as our business climate, location
to major transportation hubs, technology and talent pool
remain favorable for corporate relocations.
Commercial Real Estate Services, Worldwide.
404 812 4000 | fax 404 816 3939 | www.naibg.com
Suite 1100 | 5555 Glenridge Connector | Atlanta GA 30342
Information is deemed from reliable sources. No warranty is made as to its accuracy. ATLANTA OFFICE MARKET // Third Quarter 2011
Leasing Highlights in Select CoStar Markets
Color Coded by Vacancy Rate
Vacancy Rate: Less than 5% 5% to 10% 10% to 15% 15% to 20% Over 20%
YTD Abs: 67K SF
Quoted Rates: $17.82 PSF
YTD Abs: (49)K SF
Quoted Rates: $17.48 PSF
YTD Abs: 65K SF
Quoted Rates: $15.17 PSF
YTD Abs: (129)K SF
Quoted Rates: $17.51 PSF
YTD Abs: 9K SF
Quoted Rates: $18.42 PSF
YTD Abs: (95)K SF
Quoted Rates: $16.63 PSF
YTD Abs: (356)K SF
Quoted Rates: $17.66 PSF
YTD Abs: (353)K SF
Quoted Rates: $20.17 PSF
YTD Abs: 685K SF
Quoted Rates: $23.32 PSF
YTD Abs: (417)K SF
Quoted Rates: $22.83 PSF
Select Markets by Vacancy Rate (YTD)
UNEMPLOYMENT RATE SEPT 2011
Atlanta MSA 10.3%
The overall vacancy rate at the end of the third quarter
2011 is 19.6%, down from the previous quarter when it
was 19.8%. The current rate represents over 41.2 million
square feet of vacant office space throughout the Metro
Atlanta Office market, a 1% increase from this time last
year. The current amount of vacant sublease space is 2.1
million square feet, down slightly from last quarter.
At the close of the quarter, an overall net absorption of
309,022 SF was reported, an increase over the previous
quarter. The recorded net absorption for the current
quarter by class follows: Class A: 116,750 SF, Class B:
144,780 SF and Class C: 47,492 SF.
Leasing activity was over 2.9 million square for the quar-
ter, up from the previous quarter.
YTD NET ABSORPTIONS BY BUILDING TYPE
» CLASS A 1,037,416 SF
» CLASS B (1,408,548) SF
» CLASS C (104,301) SF
» YTD (475,433) SF
At the close of the quarter, the Atlanta Office market had
a single building, 4,000 SF, in new construction
deliveries. This compares to 40,162 SF in deliveries last
quarter and 21,000 SF this time last year.
Currently there is 765,077 SF of new office projects
under construction (11 buildings), an increase from the
451,318 SF that was underway this time last year.
The largest projects currently underway are Cox
Headquarters, Buildings 1 & 2, totaling 600,000 SF
located in the Central Perimeter submarket.
QUOTED RENTAL RATES
The current overall quoted Atlanta Office rental rate of
$19.08 PSF represented a $0.11 PSF decrease in rental
rates from the end of the previous quarter, when rents
were $19.19 PSF.
The Class A rental rates are reported at $21.50 PSF with
the highest rate reported in the Buckhead submarket at
$24.55 PSF with Midtown closely following at $24.18 PSF.
Class B sector ended the quarter with quoted rental rates
of $16.29 PSF, which is $0.11 PSF lower than last quarter
and $0.45 PSF lower than this time last year.
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Class A Class B Class C Total
VACANCY RATES BY CLASS
ATLANTA OFFICE MARKET THIRD QUARTER 2011