Office rents in Atlanta posted a healthy 6.3-percent year-over-year increase in the first quarter of 2017, though net absorption was negative in the first quarter for the second year in a row, according to Lincoln Property Company Southeast (Lincoln).
That rent increase percentage represented an average $1.15 per square foot over 2016. The average per square foot office rent in the Atlanta market is now $23.94, according to Nick Steen, Lincoln’s Director of Investment Analytics.
Growth in office employment in Atlanta is among the strongest in the nation, but factors such as office configurations that accommodate more staff may be affecting the absorption rate.
Meanwhile, Atlanta is set to see more than 2 million square feet of office deliveries in the second quarter. Among the projects set for second quarter delivery are:
- Three Alliance Center, 506,647 square feet
- Riverwood 200, 300,000 square feet
- 8000 Avalon, 228,182 square feet
- Battery at SunTrust Park, 92,000 square feet