CLASS-A WINS BIG

Atlanta's Class-A office landlords are cannibalizing from Class-B as tenants trade up on space quality. That's the results of CoStar Group's latest Q1 research on Atlanta. As CoStar's Chris Mackeputs it: ?Class-A likes to steal space from Class-B.? While Atlanta office landlords saw absorption losses of 300k SF in Q1, Class-A landlords actually absorbed 836k SF (while Class-B saw negative absorption of 980k SF). But Chris says these are all signs of recovery taking place. ?We're healing, it's just a slow process.? And the national office market is certainly recovering. During the past four quarters, the national office market absorbed 35M SF; it lost 30M SF from the beginning of 2009 to the beginning of 2010. Albeit the office recovery is uneven. ?And that didn't all happen in NY or DC. There are a number of markets that are firming up,? he says. And thus far in this cycle, technology companies are leading the office absorption charge, while the financial service sector has stopped bleeding and stabilized.

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