Office development spikes to 3.4 million square feet in Atlanta
After a moderate start to the cycle, new construction has picked up, with 3.4 million square feet set to deliver in the next two years.
May 08, 2019
- After a moderate start to the cycle, new construction has picked up, with 3.4 million square feet set to deliver in the next two years and another 4.1 million square feet in the queue.
- Midtown holds the majority of this development, with 52% of all construction occurring in the submarket. Large scale projects such as Anthem’s Technology Center, 725 Ponce, and 1105 West Peachtree are all underway, with reported preleasing activity from names such as Google, Starbucks, and Smith Gambrell.
- As new construction takes foot, rates are seeing an increase as well. The average Class A rental rate in Metro Atlanta is $31.45, while new developments are pushing past $53.00 per square foot. This is certainly having an effect on Midtown, as well as the Metro, as occupiers are gaining more options to choose from.
Source: JLL Research, US Dept. of Health and Humans Services