Atlanta, July 2, 2015 – CBRE’s Atlanta Research department reports that
Class A office vacancy has dropped to 15.2% – the lowest Class A vacancy has
been since 2001. As Class A office space makes up approximately two-thirds of
the overall Atlanta office inventory, this drop is especially impactful.
Overall vacancy achieved its lowest level in 14
years, dropping to 18.1%. The second quarter also saw a strong growth in rental
rates, as expiring tenants are faced with today’s renewal terms, often at much
higher rates. The overall rental rate for Atlanta increased to $21.28 per sq.
ft. from $20.91 per sq. ft., making it likely that the market will continue to
see rate increases throughout the second half of 2015.
Class A product in particular has seen a substantial decrease in vacancy, dropping
from 18.9% to 13.5% in just two years. Research shows that the Buckhead
submarket has not experienced lower vacancy rate for Class A office since 2006.
A shift in vacancy will occur as Three Alliance brings 500,000 sq. ft. to the
submarket in 2016. Additionally, Regent Partners and Oliver McMillian have
announced plans to bring two new office buildings to Buckhead, with 550,000 sq.
ft. and 250,000 sq. ft., respectively.
Midtown, Central Perimeter, Cumberland Galleria and North Fulton are all
experiencing space tightening, which is expected to bring a new wave of
development activity to these submarkets.
quarter’s absorption was primarily made up of headquarters relocations,
combined with the expansion of existing tenants,” said Dan Wagner, CBRE
Southeast Research Manager. “Additionally, the Atlanta market will see
increasing rental rates through the remainder of 2015 as Class A vacancy
tightens and no new office product is projected to deliver until 2016.”
About CBRE Group, Inc. CBRE Group,
Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los
Angeles, is the world’s largest commercial real estate services and investment
firm (in terms of 2014 revenue). The
Company has more than 52,000 employees (excluding affiliates), and serves real
estate owners, investors and occupiers through more than 370 offices (excluding
affiliates) worldwide. CBRE offers strategic advice and execution for property
sales and leasing; corporate services; property, facilities and project
management; mortgage banking; appraisal and valuation; development services;
investment management; and research and consulting. Please visit our website at