Metro Atlanta’s vacancy rates dropped from 20.5% to 19.9% since the first quarter, the largest decrease in vacancy posted by a Metro area in the US. Metro Atlanta’s vacancy rates, while still higher than cities like New York and San Francisco, are on par with Los Angeles. The gap between existing rents and asking rents for new office products will begin to hinder Atlanta’s development, but we are slowly seeing the gap lessen, especially in Buckhead, Midtown, and the Central Perimeter submarkets. In-town is expected to continue to outperform the submarkets outside of the Perimeter.
Since the end of the first quarter, 7 of 13 major Metro markets have seen vacancy declines. Markets that didn’t post decreases in vacancy, like Dallas, are experiencing increased amounts of speculative development – something that plagued that Atlanta market prior to the last recession.Share