Quarterly deal volume has been remarkably stable – exceeding 2.0 million square feet (msf) three consecutive quarters. Tenants leased 2.4 msf for the second quarter in a row and nearly 9.0 msf during 2018.
The market's overall availability rate, (space that is currently vacant or will be in the next 12 months), dipped by 90 basis points from 20.3% to 19.4%. The Class A availability dipped by 20 basis points to 20.5%. The availability rate in Class B and C buildings fell sharply, declining by 180 basis points to 18.2%.
ASKING RENT INCREASES
Average asking rent for the region registered a quarter-on-quarter increase of 3.1% to $26.14 and has spiked by 7.9% year-on-year. The Class A average rent increased by 2.0% to $29.25 (up from $29.00), and has jumped by 5.6% year-on-year.
Office property sales during the first eleven months of 2018 totaled $2.9 billion, a 14% decrease compared to the first eleven months of 2017.
"Atlanta's economy and office market capped off one of its strongest years with sustained hiring activity and robust demand for quality office space. Tenants are likely to face higher rent in the coming year, although the lease-up of new product should cause some moderation in rent growth."Chris White, Vice Chairman, Southeast Region Lead