ATL Office Posts Second Strongest Quarter Since Recession
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Atlanta's Q1 was a bell-ringer for office. Cushman & Wakefield revealed stats for the market, and it tallied nearly 805k SF of positive absorption for metro office landlords. This would also represent the second strongest quarter of absorption in the past two years, and the 13th consecutive quarter of companies occupying more space than leaving empty. Some of the notable deals include Comcast's 300k SF deal for SunTrust Park at the new Braves Stadium and its 88k SF HQ at 6200 The Corners Pkwy, as well as Mercedes-Benz's 90k SF temp HQ space at Sterling Pointe II (here).
With the activity comes improved office rents—up 2.5% to $21.91/SF, the strongest single quarter of rent growth in 10 years. Class-A space rose 2.3% to $25.23/SF, according to C&W. "Effective rates are producing an even greater impact as landlords dial back free rent and tenant improvement allowances," says C&W's Chad Koenig (right, with John O'Neil). "Concessions are still readily available, but just not at the same level we have been accustomed to over the last few years."