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LEASING DECLINES
Following a strong quarter of activity, with 2.2 million square feet (msf) leased – quarterly activity declined to 2.1 msf in the first quarter of 2018. Tenants have leased 7.9 msf in the four most recent quarters, on track with the long-term market average.
AVAILABILITY DOWN
The market's overall availability rate, (space that is currently vacant or will be in the next 12 months), decreased by 50 basis points from 19.7% to 19.2%. The Class A availability rate increased by 120 basis points to 21%.
RENT PUSHES HIGHER
Average asking rent for the region jumped by 2.2% during the quarter, rising to $24.72 for all classes. Class A asking rent rose by 1.3% during the quarter, starting the year with an average of $28.12.
SALES UP
Office property sales during the last six months (through February 2018) totaled $2.3 billion, a 10.9% increase compared to the previous six-month total of $2.0 billion.
"The Atlanta Market has seen remarkable growth in the post-recession era. Rents are rising at an unprecedented rate, driving us to get more creative about ways to drive down occupancy costs. A growing and talented digital workforce and a relatively low cost of doing business are leading more companies to move and grow operations in Atlanta than ever before."
Chris White, Vice Chairman, Market Leader