Transwestern: Office Market Update
Atlanta may not be a seacoast town, but it’s achieving high-water marks when it comes to its office market. Transwestern senior managing director Bo Jackson (here with the fam at Cannon Beach, Oregon) says happy days are here again due to new job formation, blue-chip corporate relocations, and both urban and suburban high-profile office sales. Bo adds that 2015 office sales have surpassed $2.6B and are clearly on track to set a new record by year’s end. This is fueled by increasing office employment growth—Atlanta is No. 2 in US job creation, beaten only by Dallas. Vacancy rates, of course, are declining and larger blocks of availability are disappearing. By all accounts, Bo says, we're in a landlord’s market. New construction costs are $350/SF to $375/SF, which requires a $40/SF gross rent. In-place rents of $25/SF to $30/SF gross can roll up significantly as landlords renew leases. Bo says that the Transwestern Property Optimization Plan custom tailors specific tactics to ensure office properties outperform their peers. For more information on that plan and our Bisnow partner, click here.