Atlanta Office Market
The Atlanta office market began 2017 on a positive note, as vacancy pushed downward, demand held steady with previous quarters and asking rents continued to climb. The market's overall vacancy rate fell 30 basis points from the previous quarter to 16.0%, the lowest since the first quarter of 2002. The average asking rental rate increased to $24.13/SF well above the average rate of $22.69/SF recorded one year ago. While each class saw gains over the year, the quarterly increase was largely driven by rent growth in the Class A sector.
Atlanta Industrial Market
Since hitting a peak in the first quarter of 2010, the Atlanta industrial market has seen vacancy remain on a steady downward slope. During this time, the vacancy rate has declined from 15.3% to 8.3% at the end of the first quarter of 2017. Driving this multi-year trend has been an improving economy, a rebalancing of all real estate markets from residential to commercial and the continued growth of e-commerce. As a result, absorption has remained positive for 26 consecutive quarters. More recently, absorption in first-quarter 2017 totaled more than 5.3 million square feet, marking the third-highest quarterly tally since the streak began. Driving first-quarter performance was healthy demand in the Airport/South Atlanta submarket, which posted net absorption of nearly 2.9 million square feet, followed by Fulton Industrial/I-20W submarket, where 1.5 million square feet of absorption was recorded..