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
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Joel
& Granot Real Estate
962 Howell Mill Road, NW
Atlanta, GA 30318
Tel: 404.869.2600
Fax: 404.869.2601
www.joelandgranot.com
JGRE
Newsletter
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