The Atlanta Office Market - Q1 2016

According to the Bureau of Labor Statistics, the unemployment rate dropped 0.6 percentage points from 5.7% in February 2015 to 5.1% in February 2016.  The Atlanta metropolitan statistical area job creation totaled 72,500 in the Atlanta-Sandy Springs-Roswell metropolitan statistical area over the past year. 

The Atlanta office market recorded 273,264 SF of positive absorption during the first quarter of 2016.  Major occupiers of space included Atlantic Trust, Rubbermaid, Kaiser Permanente, Kabbage, CHEP USA, Emory University, HD Supply and Wellstar.  Demand for space is expected to continue as corporations continue to find Atlanta a good match for their Southeast destination.
             
Due to an ongoing increase in demand for space, the total vacancy rate has dropped from 19.0% in Q1 2015 to 17.5% at the close of first quarter 2016.  Direct vacancy rates dropped 1.7 percentage points from 18.5% to 16.8% during the same time period.

Rent growth continued to improve during first quarter 2016 especially in class A product in Buckhead, Midtown and Central Perimeter.  Asking rents in all classes rose 6.1% recording $22.30 per square foot (psf) at the close of first quarter 2016 compared to first quarter 2015.  Class A rents rose 7.6% over the past year, recording $24.41 psf at the close of first quarter 2016.  We expect rents to continue increasing during 2016 with higher escalations in class A product in submarkets with low vacancy and construction activity.

 

Joel & Granot Commercial Real Estate is a leading commercial real estate brokerage firm specializing in Metro Atlanta commercial property. We represent landlords and tenants lease space, and buy and sell real estate on behalf of our clients. Our Atlanta tenant representation work serves many industries, including law firms in Atlanta, nonprofits and medical office space occupiers. In addition, Joel & Granot Commercial Real Estate provides Atlanta property management services. While we help companies select Atlanta office space, we begin by building a relationship based on trust and a philosophy that is client driven, not transaction driven. Joel & Granot is locally based yet globally connected with CORFAC International. For more information call 404-869-2600 or visit www.joelandgranot.com

BuckheadNorthwestMidtownNorth Fulton
Central PerimeterDecaturNortheastDowntown

Joel & Granot Real Estate
962 Howell Mill Road, NW
Atlanta, GA 30318
Tel: 404.869.2600
Fax: 404.869.2601

www.joelandgranot.com
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