Downtown Atlanta Downtown Atlanta

ATLANTA—Atlanta’s office market closed the third quarter of 2017 with 213,902 square feet of positive net absorption and a total vacancy rate of 17.5%. That’s according to CBRE Research’s third quarter 2017 data on the office commercial real estate market in the Atlanta area.

Although market activity is lower than compared to a year ago, the main contributor of the market’s positive absorption has been the completion of pre-leased space in Atlanta’s newest office developments. During the third quarter 2017, 172,906 square feet of office space was delivered.

“The average space occupied per worker continues to decline across most industry groups, posing a challenge for some buildings where tenants are seeking more parking capacity,” Dan Wagner, Southeast Divisional Research Director, tells GlobeSt.com. “It comes as no surprise that as office environments become more dense , the demand for parking rises. This trend is quite prominent intown, where parking ratios are generally lower.”

Overall office rents, which have risen consistently over the last four years, hit a new record high of $25.60 per square foot. Since 2013, the average overall rent has risen $5.27 per square foot, or 26%. Asking rates for new class A office towers are generally ranging between the mid-$30s to the mid-$40s per square foot.

As companies begin using office space more efficiently, the issue of parking capacity arises. Businesses must evaluate the need for additional employees while being strategic about occupancy and operational costs. The following are highlights of the report.

  • Rents continue to push higher despite cooling absorption.
  • Average overall rents are highest ever.
  • An expanding economy and advancing workplace efficiencies have given rise to a tightening of parking capacity.
  • Total Vacancy: 17.5%
  • Average Lease Rates: $25.60
  • Net Absorption: 213,902 square feet
  • Construction: 1,643,643 square feet
  • New Completions: 172,906 square feet