| Atlanta Office Space Market - Downtown |
(Reported by)
Holley W. Mitchell
Vice President
Joel & Granot
holley@joelandgranot.com
404-869-2637
Looking for space? Holley has 30 years of CRE experience. |
Downtown Submarket Report - 1st Qtr 2012
Effective Rental Rates:
Class A office space: $18.50-$22.50 per SF
Class B office space: $15.00-$18.00 per SF
Class C office space: $13.00-$16.00 per SF
Concessions:
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Free Rent: 1 to 1.5 months per lease year, usually outside the term. |
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Tenant Improvement Allowance: $4.00 - $7.00/SF/lease year. |
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Moving Allowances: $1.00 - $1.50 per square foot in either moving allowance or other lease concessions. |
Absorption Rate: -64,268 SF in 4th Qtr. 2011*
Vacancy Rate: 17.95% in 4th Qtr. 2011*
* Source: CoStar Group, Inc.
New office projects in the area: Construction is beginning on the Streetcar project for the downtown circulator portion. This construction should take approximately 18 months. Two streetcars have been purchased and will be ready to put in service once the construction is complete.
Major office leases or announcements: The Candler Building has just expanded The Cochran Firm into a full floor increasing the firm’s total square footage to 13,800 RSF.
Other trends in the submarket that should be noted: In November last year, Georgia Department of Community Affairs approved an Opportunity Zone for Downtown Atlanta. This means that companies located within the Opportunity Zone can receive an income tax credit of $3,500 per job per year for five years for a total of $17,500 for every net new job created. Relating this credit to a reduction in per square foot rental rate, based on 250 SF per person, it would be $14.00/SF/year reduction in rent. A great incentive to locate a business in this Downtown Opportunity Zone and create new jobs. Any legal business entity creating two or more jobs within one year could qualify for these credits.
The area is defined by North Avenue to the north, Piedmont to the east, Marietta Street/Decatur Street to the south, and Centennial Olympic/Techwood on the West, and includes the area within the Grady curve between Piedmont and the Interstate (I-75/85).
Browse market reviews on other major office submarkets in Atlanta. |
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| Downtown Premier Office Property Short-List* |
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Atlanta Center
250 Piedmont Avenue
RATE:
$10.00 (N)
MAX CONTIG:
362,300 SF |
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| Cassidy Turley |
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The Candler Building
127 Peachtree Street
RATE:
$16.00-17.50
MAX CONTIG:
20,000 SF |
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Joel & Granot
Real Estate, LLC |
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Centennial Tower
101 Marietta Street, NW
RATE:
$17.50-24.00 (G)
MAX CONTIG:
80,000 SF |
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| Jackson Oats Shaw Corporate Real Estate |
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| 114,837 SF |
Renewal |
Turner Broadcasting System, Inc. |
Tenant Rep: Dom Wyant, Jones Lang LaSalle |
01/2011 |
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Georgia-Pacific Center
133 Peachtree St NE
RATE:
$21.00-22.00/G
MAX CONTIG:
91,442 SF |
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| Jones Lang LaSalle |
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| 1,693 RSF |
New |
Atlanta Regional Council for Higher Education Inc |
Tenant Rep: John Winter & Ben Reeves (Cushman & Wakefield) |
03/2011 |
| 9,927 RSF |
New |
CoreNet Global Inc |
Tenant Rep: Mark Daughtry (USI Real Estate) |
03/2011 |
| 1,106 RSF |
New |
Townes Consulting & Psychological Services |
Tenant Rep: Nima Ghomghani (Grubb & Ellis) |
01/2011 |
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260 Peachtree Building
Completely Renovated
RATE:
$18.50-19.50 (G)
MAX CONTIG:
11,981 SF |
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| Richard Bowers & Company |
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270 Peachtree Building
Completely Renovated
RATE:
$18.00-19.00 (G)
MAX CONTIG:
41,772 SF |
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| Richard Bowers & Company |
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| *Short-List represents featured properties inside Dorey’s Atlanta Office Guide. The Done Deals shown in this Short List are reported to us quarterly as a voluntary effort. It does not represent a comprehensive report of done deals for all Short List properties. |
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