Leasing volume has been stuck in neutral for several quarters. Nevertheless, activity in the Midtown, Central Perimeter, North Fulton and Northwest remains steady with corporate relocations boosting demand as well.

1. Savills Studley Report
Atlanta office sector Q2 2016
Savills Studley Research
Atlanta
SUMMARY
Market Highlights
AVAILABILITY AND VACANCY BOTH
RISE
The region’s overall availability rate
increased for the third time in the last four
quarters, jumping from 19.5% to 19.8%.
Class A availability also rose – from 17.9%
to 18.3%. Atlanta’s Class A vacancy rate
dropped to 16.5% in the second quarter.
The gap in overall vacancy between the
Urban Core (14.1%) and Suburban Atlanta
(17.7%) remains at essentially the same level
as last quarter.
ASKING RENTS PUSH HIGHER
Class A rent for the region rose by 2.3%
quarter-on-quarter to $26.64 and overall
average rent rose by 5.8% to $23.21. Class
A asking rent in the Urban Core pushed
4.5% higher, to $30.62, its first time above
$30.00 on record.
LEASING REMAINS ON SLOWER TRACK
Deal volume has been running about 25%
below its long-term average for the last eight
quarters - averaging 1.5 msf since mid-year
2014, compared to an average of 2.4 msf in
the prior eight quarters.
“Leasing volume has been stuck
in neutral for several quarters.
Nevertheless, activity in the Midtown,
Central Perimeter, North Fulton
and Northwest remains steady with
corporate relocations boosting demand
as well.”
Chris White, EVP, Market Leader

2. 02
Savills Studley Report | Atlanta
Tightening Conditions Despite
Slower Leasing
Conditions remain as tight as they have been
in years in Atlanta’s urban core. Buckhead’s
overall availability rate ended midyear at
15.7%, and Midtown’s dropped to 13.7%.
Central Perimeter, and some sections of
North Fulton, have also seen tightening.
With limited new construction of office
product and leasing maintaining a decent
flow, landlords are optimistic and continue to
boost rent. Class A asking rent in the urban
core jumped by 4.5% in the second quarter,
rising to $30.62.
The Buckhead market is tight, but a few
properties in Downtown have rather large
blocks to fill. Downtown’s Bank of America
Plaza, for example, has more than 250,000
sf remaining for lease. The owner of the
Campanile Building (1155 Peachtree St
NE) hopes to add an additional 200,000 sf
atop 1155 Peachtree St NE. Both buildings
could become landing spots for potential
headquarter locations. There are 55 Class
A and B blocks over 50,000 sf in existing
buildings currently available in the urban
core. The pricing differential for lower floor
commodity space and space on upper
floors is widening. Rent for view space in
Downtown, Buckhead and Central Perimeter
continues to command a premium,
exceeding $40.00 in some buildings.
Rental rates have continued their ascent
despite deal volume that has lost some of
its kick. The number of mega 100,000-sf-
plus leases has dropped off in the last few
quarters. In fact, leasing activity has been
running about 20.0% below its long-term
average since year-end 2014. Some of this
may be due to depleted options. In prior
cycles, there were generally so many new
buildings competing with one another that
concessions soared to record levels. Tenants
were quick to jump, particularly since some
landlords were willing to buy tenants out
of their existing lease. Today, the early
lease renewal/restructure has become less
frequent. New ownership that came into the
market is often restricted in terms of how
aggressively they can adjust rents due to the
pro forma rents they have to hit.
Midtown a Hotbed of Activity
Georgia Tech’s Technology Square captured
more demand in the second quarter.
The complex continues to be a magnet
for software developers and other tech
companies. GE ultimately selected Boston
for its new headquarters, but they recently
announced plans to open their first global
Source: Bureau of Labor Statistics
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
0.30
0.35
0.40
0.45
0.50
0.55
0.60
0.65
0.70
0.75
0.80
Millions
Atl. Office Emp. Atl. - % Annual Change. U.S. - % Annual Change
Office-Using Employment Trends
$26.64
$23.38
$18.83
$17.39
$0
$5
$10
$15
$20
$25
$30
2Q162Q152Q142Q132Q122Q11
($/sf)
Rental Rate Trends
Class A Class B
Asking Rent Trends
19.8%
25.9%
17.3%
21.0%
0%
5%
10%
15%
20%
25%
30%
35%
2Q162Q152Q142Q132Q122Q11
(%) Vacancy & Availability Rate Trends
Availability Rate*
Vacancy Rate
*Availability includes vacant space marketed for lease and space with occupancy in 1‐12 months
Availability Rate Trends

3. savills-studley.com/research 03
Q2 2016
Tenant Sq Feet Address Market Area
Wellstar 112,924 Two Parkway Center Northwest
Equifax 100,000 One Atlantic Center Midtown
Regus/Spaces 41,824 715 Peachtree Midtown
HNTV 25,470 One Ninety One Peachtree Downtown
Metro Atlanta Chamber of Commerce 25,185 One Ninety One Peachtree Downtown
Century Communities 25,000 3091 Governors Lake Dr Northeast
New South Construction 22,456 Regions Plaza Midtown
PrimeRevenue 22,281 Eleven Hundred Peachtree Midtown
TriBridge Residential 19,748 Atlanta Technology Center Midtown
EBSCO 17,094 The Gold Building Northwest
Sum of Leases 411,982
digital operations center at a yet-to-be
disclosed location in Midtown that will house
250 employees. Some speculate that GE
could be considering the High Performance
Computing Center at Tech Square. The
750,000-square-foot office tower to be
anchored by Georgia Tech is hoping to
become a haven for companies that work
on “big data” technologies. The building is
slated to deliver in early 2019. Southern
Co. recently opened its 6,000 sf R&D center
at Tech Square. Southern Co. employees
will focus on the testing and piloting of new
hardware, software and product design
for next-generation products and services
in home automation, energy efficiency,
renewable energy and biopharma.
While Tech Square is laying the groundwork
for innovation and startups, Atlanta’s
fintech sector has come of age. Equifax
announced that it will create 150 new jobs
and relocate 450 current employees from
its offices in Sandy Springs and Alpharetta
to Midtown. Equifax has leased 100,000 sf
at One Atlantic Center (1201 W Peachtree
St NW) to accommodate the big expansion.
Growth in its financial analytics business
is spurring the hiring spree – whereas
credit reports accounted for about 80% of
the firm’s revenues about a decade ago,
today they represent about half. As fintech
innovation, streaming video and mobile
payment companies base their operations
in Atlanta, demand for Atlanta’s expertise in
internet security services is also intensifying.
Cambridge, Massachusetts-based Akamai
more than doubled its occupancy in
Buckhead, leasing 17,000 sf at Northcreek
Office Park as part of a plan to increase
its headcount by more than 70 in the next
several months.
Construction Poised for Breakout?
Robust job growth and a steady flow of
residents and employers from higher-
cost markets are hardly new trends for
Atlanta. Controlled construction is a bit
of new wrinkle, but there are some signs
that development could quickly return to
its historic trends if leasing activity can be
sustained for another few quarters. While
rents have jumped, they are typically 10%
or 15% below the break-even point at which
most landlords would proceed with spec
development – once rents routinely average
$43.00 to $45.00 in Buckhead and rise
above $35.00 in Central Perimeter, there
could be more dirt turning.
Development activity is heating up a bit,
but most developers are still making office
space only a small component in larger
mixed-use centers that are generally
centered around multi-family. The Allen
Morris Company recently unveiled plans for
Star Metals in West Midtown. The $210.0
million mixed-use development will have a
nine-story apartment building and a 185,000
sf Class A office building across the street.
Similarly, in Central Perimeter, Greenstone
Properties and Parkside Partners will team
up to construct a 120,000 sf office building
at North Station. The project, which is
within walking distance of the MARTA North
Spring station will also feature a 234-unit
multi-family property being constructed by
Trammell Crow.
Several other developers in Central
Perimeter are poised to move forward with
new office projects, including Ackerman
& Co/Cousins Properties at Abernathy
400, Hines Interests' 700 Northpark
and the potential redevelopment of the
former GoldKist HQ site at Perimeter
Center Parkway. At this point Seven Oaks
Company’s 355,000 sf 4004 Perimeter
Summit, is the only speculative project in the
Central Perimeter market underway; in fact
it is the first spec project to be constructed
in more than a decade. Located in the 83-
acre Perimeter Summit mixed-used office/
hotel development, the 15-story tower is
slated to open mid-quarter 2017.
Looking Forward
Many of the proposed Central Perimeter
projects clustered around the MARTA line
are banking on access to mass transit as a
major selling point to prospective tenants.
Proximity to heavy-duty interstate highway
infrastructure makes Central Perimeter
accessible to workers throughout the
suburbs of Atlanta. Maybe even more
importantly, MARTA rail links the Central
Perimeter market to intown Atlanta's
growing mass of younger millennials. It
remains to be seen if this will help landlords
dispel the notion among companies
focused on recruiting millennials that they
must be based in Midtown or Buckhead.
Availability Rate Comparison Rental Rate Comparison
Major Transactions
$33.41
$33.06
$27.19
$26.55
$25.30
$23.21
$22.71
$22.48
$22.34
$21.48
$18.07
$17.98
$17.68
$0 $10 $20 $30
Buckhead
US Index
Urban Core*
Midtown
Central Perimeter
Atlanta Region
Northwest
Downtown
North Fulton
Suburban Atlanta
Northlake
Northeast
South Atlanta
($/sf)
* Urban Core includes Downtown, Midtown and Buckhead
12.4%
9.5%
16.2%
14.1%
13.2%
18.2%
16.5%
17.3%
17.7%
17.8%
20.0%
19.1%
23.3%
13.7%
15.7%
17.0%
17.0%
17.8%
18.7%
19.8%
20.7%
21.3%
21.4%
22.0%
23.3%
26.5%
0% 10% 20% 30%
Midtown
Buckhead
US Index
Urban Core*
North Fulton
South Atlanta
Atlanta Region
Central Perimeter
Suburban Atlanta
Northwest
Downtown
Northlake
Northeast
(%)
Vacancy Rate
Availability*
*Availability includes vacant space marketed for lease and space with occupancy in 1‐12 months

4. Savills Studley Report | Atlanta
04
Map Submarket Total
Leasing
Activity
Inventory
SF
(1000's)
Last
12
Months
This
Quarter
%
Change
from
Last Qtr.
Year
Ago
This
Quarter
pp
Change
from
Last Qtr.
(1)
Year
Ago
This
Quarter
%
Change
from
Last Qtr.
Year
Ago
Downtown 18,339 327 4,040 -1.0% 4,969 22.0% -0.2% 27.1% $22.48 0.5% $22.52
Downtown - Class A 9,714 178 2,022 -3.3% 2,127 20.8% -0.7% 21.9% $25.55 -0.5% $26.22
Midtown 19,040 700 2,601 -2.2% 3,111 13.7% -0.3% 16.3% $26.55 1.3% $25.77
Midtown - Class A 14,323 536 1,761 -5.6% 2,169 12.3% -0.7% 15.1% $28.73 0.3% $28.28
Buckhead 20,462 730 3,215 4.1% 2,492 15.7% 0.6% 12.2% $33.41 7.9% $27.56
Buckhead - Class A 15,594 477 2,588 5.7% 1,764 16.6% 0.9% 11.3% $35.93 9.6% $30.16
Central Perimeter 23,901 985 4,941 3.7% 4,479 20.7% 0.7% 18.7% $25.30 2.1% $23.34
Central Perimeter - Class A 18,551 729 3,518 5.8% 2,966 19.0% 1.0% 16.0% $27.52 0.7% $25.22
North Fulton 23,303 938 4,152 0.4% 3,809 17.8% 0.1% 16.3% $22.34 8.1% $20.54
North Fulton - Class A 14,443 622 2,588 -1.6% 2,271 17.9% -0.3% 15.7% $23.65 2.0% $21.92
Northeast 17,515 630 4,642 1.3% 4,332 26.5% 0.3% 24.7% $17.98 13.1% $17.29
Northeast - Class A 6,404 250 1,587 -0.7% 1,632 24.8% -0.2% 25.5% $20.58 3.2% $19.76
Northwest 25,910 1,235 5,556 3.3% 5,037 21.4% 0.7% 19.4% $22.71 8.2% $20.45
Northwest - Class A 15,217 830 3,222 0.2% 2,889 21.2% 0.0% 19.0% $25.64 3.2% $23.31
Northlake 10,916 323 2,547 9.0% 2,281 23.3% 1.9% 20.9% $18.07 6.3% $18.29
Northlake - Class A 3,350 57 621 96.3% 371 18.6% 9.1% 11.1% $20.68 -2.6% $22.21
South Atlanta 6,356 152 1,186 -6.5% 1,361 18.7% -1.3% 21.4% $17.68 11.8% $17.55
South Atlanta - Class A 959 34 120 -17.1% 184 12.5% -2.6% 19.2% $19.45 3.4% $20.08
Urban Core Total* 57,841 1,760 9,856 0.3% 10,572 17.0% 0.1% 18.3% $27.19 3.6% $24.93
Urban Core - Class A 39,631 1,190 6,371 -0.5% 6,059 16.1% -0.1% 15.3% $30.62 4.5% $28.13
Suburban Total 107,901 4,262 23,023 2.5% 21,299 21.3% 0.5% 19.7% $21.48 7.5% $20.12
Suburban Total - Class A 58,924 2,521 11,656 3.8% 10,313 19.8% 0.7% 17.5% $24.53 2.0% $22.96
Atlanta Region Total 165,742 6,022 32,879 1.8% 31,871 19.8% 0.4% 19.2% $23.21 5.8% $21.64
Atlanta Region - Class A 98,555 3,711 18,027 2.2% 16,372 18.3% 0.4% 16.6% $26.64 2.3% $24.89
8
9
1-3
4-9
1-9
7
Availability
Rate
Asking Rents
Per SF
1
2
3
4
5
6
Available
SF
@SavillsStudleywww.savills-studley.com
Please contact us for further information
(1) Percentage point change for availability rates.
Unless otherwise noted, all rents quoted throughout this report are average asking gross (full service) rents psf.
Statistics are calculated using both direct and sublease information.
Short-term sublet spaces (terms under two years) were excluded.
The information in this report is obtained from sources deemed reliable, but no representation
is made as to the accuracy thereof. Statistics compiled with the support of The CoStar Group.
Copyright © 2016 Savills Studley
Savills Studley
Monarch Plaza
3414 Peachtree Road
Suite 1000
Atlanta, GA 30326
(404) 467-0707
Branch Manager
Chris White - EVP, Market Leader
cwhite@savills-studley.com
(404) 504-0019
29
75
138
675
20
75
575
985
124
316
85
285
75
285
2
1
3
4
6
7
8
9
5
400
85
85
*The Urban Core includes the Downtown, Midtown and Buckhead submarkets