One of the most talked about projects in Atlanta is Jamestown Properties’ redevelopment of a former Sears distribution center on the eastern edge of Midtown.
Rebranded as Ponce City Market, the 2.1 million-square-foot building is being converted into a mixed use center.
Scroll to down to read the full report by Jeff Bellamy of Jones Lang LaSalle. |
 |
 |
| Atlanta Office Space Market - Midtown |
(Reported by)
Jeff Bellamy
Regional Director
Jones Lang LaSalle
jeff.bellamy@am.jll.com
404-995-2221 |
Midtown Submarket Report - 1st Qtr 2012
Effective Rental Rates:
Class A office space: $22.00-$30.00 per SF
Class B office space: $15.00-$20.00 per SF
Class C office space: N/A
Concessions:
All concessions are dependent upon credit worthiness of tenant, length of term, and other concessions structured into the deal.
 |
Free Rent: One to two months per year of lease term. |
|
Tenant Improvement Allowance: T.I. packages are anywhere from $15.00 to $75.00 per square foot. |
|
Moving Allowance: Typically rolled into T.I. packages, if any. |
Absorption Rate: 20,506 SF in 4th Qtr. 2011*
Vacancy Rate: 21.18% in 4th Qtr. 2011*
* Source: Jones Lang LaSalle
New office projects in the area: One of the most talked about projects in Atlanta is Jamestown Properties’ redevelopment of a former Sears distribution center on the eastern edge of Midtown. Rebranded as Ponce City Market, the 2.1 million-square-foot building is being converted into a mixed use center. In addition to hotel, residential and retail components, there will be 450,000 square feet of office space. Ponce City Market will act as a neighborhood hub in an area that until recent years was mostly blighted. There are several multifamily projects underway in Midtown. Daniel Corp. and Selig Enterprises broke ground on a 22-story multifamily tower at their 12th & Midtown complex, while Novare Group has a 23-story tower going up at the corner of Spring and 13th Streets. Also nearby at 10th Street and the Connector, North Point Hospitality Group is developing a dual-branded Homewood Suites and Hilton Garden Inn with a combined 226 units in 12 stories.
Major office leases or announcements: The engineering firm of Rosser International relocated from 524 West Peachtree Street Dewberry Capital’s Two Peachtree Pointe building in early February. They leased close to 20,000 square feet. 
Other trends in the submarket that should be noted: The market fundamentals have been stuck in neutral and the vacancy rate has hovered around 25.0 percent since the beginning of 2010. Despite this, quoted rates have held firm and are the highest of any submarket in Atlanta. With Buckhead commanding much of the Urban demand and backfilling tower space, look for occupiers to start shifting their focus south to Midtown for premium options.
Browse market reviews on other major office submarkets in Atlanta |
 |
| Midtown Premier Office Property Short-List* |
 |
Colony Square
1175 & 1201 Peachtree Street
RATE:
$24.00
MAX CONTIG:
30,016 SF |
 |
| Tishman Speyer |
|
|
 |
The Lumberyard
1425 Ellsworth
Industrial Blvd.
RATE:
$16.75 (MG)
MAX CONTIG:
2,626 SF |
 |
| EpiCity Real Estate Services |
|
|
 |
Midtown Plaza
1349 W Peachtree St NE
RATE:
$23.50 (G)
MAX CONTIG:
23,111 SF |
|
| Tishman Speyer |
|
|
 |
1100 Peachtree
1100 Peachtree Street NE
RATE:
$18.00 (N)
MAX CONTIG:
46,000 SF |
 |
| Cassidy Turley |
|
|
 |
Peachtree Palisades East
1819 Peachtree Street
RATE:
$18.50
MAX CONTIG:
40,359 SF |
 |
 |
| Colliers International | Atlanta |
|
|
 |
The Proscenium
1170 Peachtree Street
RATE:
$30.00-$32.00
MAX CONTIG:
17,144 SF |
 |
| Manulife Financial |
|
|
 |
171 17th Street
in ATLANTIC
STATION®
171 17th Street
RATE:
RATE: $18.50-19.50 (N)
MAX CONTIG:
24,829 SF |
 |
| Cassidy Turley |
|
|
 |
201 17th Street
in ATLANTIC
STATION®
201 17th Street
RATE:
$28.50 (G)
MAX CONTIG:
106,825 SF |
 |
| CBRE |
|
|
 |
12th & Midtown
1075 Peachtree Street NE
RATE:
$24.00-26.00 (NNN)
MAX CONTIG:
725,000 SF |
 |
| Daniel Corporation |
|
|
| 5,963 SF |
New |
Dorris & Associates |
Tenant Rep: Michael Lipton & Craig Mendel-Colliers |
08/2011 |
| 140,000 SF |
New |
PriceWaterhouseCoopers |
Tenant Rep: John Schlesinger - CBRE |
01/2011 |
| *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. |
|
|
