Commercial Real Estate Report - Atlanta, GA [Office]

Property Type

The Atlanta office market, unable to establish a consistent positive absorption trend, continues to sputter. The year 2012 closed with the vacancy rate up 10 basis points for the quarter, identical to the year-end 2011 rate and only 70 basis points off the cyclical peak reached in the first quarter of 2011. Reis put respective asking and effective average lease rates for the fourth quarter each up 0.5% for the period but up just 1.1% for the year. (3/8/13)

Boundaries

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Recent Sales New Construction Highlight Submarkets

Latest Quarterly Reports (Q1 2013)

Atlanta, GA - Entire Metro
Submarkets
W Atl/I-20W/I-75 -240 bps
Roswell/Alpharetta -120 bps
Midtown/Pershing -80 bps
NE Atlanta/I-85N -60 bps
E Atlanta/Decatur -50 bps
Far South -50 bps
Peachtree Corners -30 bps
Northlake/Stn Mtn -20 bps
N Central/I-285 0 bps
Cumberland/I-75 10 bps
Downtown 10 bps
Airport/S Atlanta 40 bps
NE Gwinnet/I-85 70 bps
Buckhead/Lenox 100 bps
Marietta/E Cobb 180 bps

Recent Sales

Cap Rate Trend

Sales Trend

Q1
2013
Q4
2012
Q3
2012
Q2
2012
Mean 7.7% 7.6% 8.3% 7.3%
Median 7.8% 8.3% 8.6% 7.8%
12 Month Rolling 8.1% 8.9% 8.9% 8.8%

Commercial Real Estate News

Recent Rent Observations

Location ID Class Rent
NE Gwinnet/I-85 25300 BC $11
NE Gwinnet/I-85 39290 A $22
NE Gwinnet/I-85 97391 BC $13
NE Gwinnet/I-85 95610 BC $19
NE Gwinnet/I-85 20540 BC $25
Northlake/Stn Mtn 38620 BC $16
Roswell/Alpharetta 68330 A $20
NE Atlanta/I-85N 13070 BC $16
Roswell/Alpharetta 23800 A $18
NE Atlanta/I-85N 70220 BC $18

Change From Previous Quarter

Market Rent Vac Inv
Atlanta 0.2% -10 bps 0.0%
South Atlantic Region 0.3% 10 bps -0.0%
United States 0.8% -10 bps 0.1%

Metro vs. Region -0.1% -20 bps 0.0%
Metro vs. US -0.6% 0 bps 0.0%

Latest New Construction Updates

Location Size
Cumberland/I-75 150,000 - 290,000
Buckhead/Lenox 430,000 - 570,000
Cumberland/I-75 290,000 - 430,000
Cumberland/I-75 150,000 - 290,000
W Atl/I-20W/I-75 0 - 150,000
N Central/I-285 0 - 150,000
N/A 0 - 150,000
NE Atlanta/I-85N 0 - 150,000
N Central/I-285 290,000 - 430,000
Midtown/Pershing 150,000 - 290,000
View all Construction Projects

National Office Real Estate Trends

Vacancy Trends
Supply and Demand
Inventory Change
Inventory Change

Metropolitan Office Rankings (Q1 2013)

Based on 190 U.S. Markets
Value:
143. Provo-Orem, UT 20.0%
144. Fort Lauderdale, FL 20.1%
145. Indianapolis, IN 20.1%
146. Sarasota, FL 20.1%
147. Fresno, CA 20.2%
148. Atlanta, GA 20.4%
149. Colorado Springs, CO 20.4%
150. Fairfield County, CT 20.4%
151. Akron, OH 20.5%
152. Lakeland, FL 20.5%
153. Worcester, MA 20.6%

Avg Annual Growth Rate (2013 - 2017)

Market Rent Vac Inv
Atlanta 2.9% 1,904 bps 0.3%
South Atlantic Region 1.7% 1,686 bps 0.5%
United States 2.6% 1,661 bps 0.7%

Metro vs. Region 1.2% 217 bps -0.2%
Metro vs. US 0.2% 242 bps -0.4%