Cresa: A Historically Successful Year for the Atlanta Office Market
Thursday, January 16th, 2020
Cresa Atlanta has released the third quarter market report for Atlanta. The city scored large corporate relocations, expansions, and has consistently defied predicted slowdowns. Big name firms are snatching up space in Atlanta’s recently delivered and under construction “Class A+” buildings that are demanding rates into the mid-50’s/SF. It will be interesting to see how Atlanta’s historic buildings compete as their legacy tenants relocate to these shiny new towers like 1105 WP, Midtown Union, and CODA.
The Atlanta Beltline, the hippest place to eat, drink, and increasingly, work, has proliferated expansion throughout neglected areas of Atlanta this year. 760 Ralph McGill and Quarry Yards are prime examples of mixed-use developments that likely would not have happened without the Beltline’s influence. Midtown, still the hottest market in Atlanta with over 3 million square feet under construction, ended out Q4 2019 with just 259,529 SF in leasing activity, relatively low compared to past quarters for this tech-driven submarket. Buckhead landed 325,437 SF in leasing activity in Q4, a well-deserved win over Midtown that has been stealing the ITP spotlight for most of 2019. Atlanta’s outer and more affordable office markets, Cumberland/Galleria and Central Perimeter, closed out Q4 with 238,027 SF and 597,685 SF in leasing activity, respectively. Bank of America Plaza, Atlanta’s tallest building that sits between Downtown and Midtown, secured 58K SF in leases this quarter; a significant win for this icon of the Atlanta skyline that has been plagued with large vacancies for many years.
With the economy holding steady, the city still thriving from a highly educated talent pool, and relatively low cost of living, we predict a healthy start to 2020 for Atlanta’s office market.