From BISNOW: The Fastest-Growing Office Rents in The U.S. Are in Atlanta
Rents at Atlanta’s premier office spaces in Midtown and Buckhead have risen 14.2% since last year, breaking the $50/SF ceiling for the first time. That puts Atlanta’s dot on a propitious global map: The two submarkets charted the fastest rent increases of any U.S. city in the past year, according to a recent CBRE study.
Atlanta experienced the sixth-fastest rent growth of all major global office markets. CBRE defined those rents as occupier costs, which also include service charges and taxes for a market’s premium office space. While the added development has increased Midtown’s vacancy rate from 16.5% to 17% in the past year, much of the new space is already being gobbled up by companies before they even deliver, which is helping to support the high rents. According to Savills, more than 3.1M SF was leased in the first quarter, which is the strongest quarterly showing since 2014.
“Traditionally, Atlanta has been viewed as a commuter metro due to its large land size and corresponding suburban sprawl,” CBRE officials wrote in the report. “However, tenants are flocking to Buckhead and Midtown, capitalizing on its increasing densification and transit options to attract and retain top talent from the greater metro area.”
Even outside Midtown and Buckhead, office rents have increased in Metro Atlanta. Over the past year, Class-A suburban office rents, which have stagnated in Metro Atlanta since the Great Recession — rose 5.8% to an average of $37.76/SF. This has led companies to balance the cost increases by lumping more employees into less space than they may have in decades past. Worker trends indicate that amenities, natural light and communal spaces are more appealing that a little extra room.
Sixty West adding 120,000 SF in Old Fourth Ward
Sixty West Funds Old Fourth Ward Opportunity Fund project, a co-development with Lucror Resources, will bring 120,000 SF of total office space to Atlanta. The office building will be heavy timber construction, offering exposed wood, natural lighting and eco-conscious sensibilities.
The office component of the urban infill mixed-use development will potentially offer both shared and private spaces. Additionally, the site is conveniently located within proximity to major roadways, the Atlanta Streetcar, and the future Atlanta BeltLine via bike lanes and pedestrian pathways.
Atlanta’s tvsdesign is the architect. Hirsch Bender & Associates is the interior designer.
Read the Full BISNOW Article HERE.
Learn More about Sixty West Funds and the Old Fourth Ward Opportunity Zone Fund HERE.