The Atlanta region continues to grow in almost all sectors.  Mixed use developments that suffered through the real estate recession in the late 2000’s are now the new standard for large scale developments.  Neighborhoods both in town as well as in the suburbs are currently flourishing.

The Old Fourth Ward, an in-town neighborhood which is now one of the hottest neighborhoods to live, work and play was littered with derelict warehouses just a decade ago.  A boon to this growth has been the Eastside Trail, the first section of the Atlanta Beltline, which has connected this area to established Midtown and Downtown neighborhoods.  Development has been active as a result.   

Suburban areas have rebuilt their town centers with restaurants, shopping and entertainment, making the neighborhoods walkable and luring both empty nesters as well as young adults to new residential developments. North Metro cities including Alpharetta, Roswell, Marietta and Duluth are among the areas changing dramatically.

Atlanta Office Market   

Atlanta has experienced a resurgence in office development over the last several years, with Midtown holding a large share of this development.  NCR has consolidated its offices from suburban locations to a single state-of-the-art facility in the heart of Midtown.  The CODA building in Midtown, opened this quarter, is already substantially leased by the Georgia Tech Research Institute and WeWork – both absorbing large blocks of space.   

North Metro Suburban markets are enjoying new developments with Central Perimeter gaining additional large users such as the Mercedes Benz North American HQ and a large regional campus for State Farm.  Other notable developments include:

1. the second office phase of Avalon, currently under construction, with rents topping $40 per square foot for first time in the suburban markets; and
2. The Battery at the new Braves stadium in the Northwest Submarket, hosting new office buildings for Comcast and ThyssenKrupp.

All in all, Atlanta’s 318 million square foot office market is at a healthy 17.1 percent vacancy rate.  Overall metro-area rents continue to rise with an average rent of $25.83 per square foot with some in-town markets crossing the $50 per square foot mark.  Details are provided below:

Atlanta Industrial Market

The Atlanta industrial market is robust - serving as an inland port for Savannah and Charleston and the logistics hub for the Southeast.  Amazon recently announced a 700,000 square foot facility in Gwinnett County near Stone Mountain with plans to employ 1,000 workers. 

There are many factors that make Atlanta an attractive Industrial market.  These include:   

1. proximity to the world’s busiest airport (an added bonus for the logistics companies);
2. an abundance of data centers that already occupy many industrial properties; and
3. a burgeoning film industry requiring a demand for film studio production space and for film industry accommodations around the city.

With 20 million square feet under construction, our 770 million square foot market continues to grow. A 7.7 percent vacancy rate is keeping the Industrial market healthy - replete with both available space and new development opportunities. 

Atlanta Labor Market

Atlanta’s unemployment rate has dropped to 3.0% in the metro area - compared to 3.8% nationally. This factor has certainly contributed to steady overall growth as represented by a population increase of roughly 90,000 people per annum over the last several years. The Atlanta MSA is estimated at 5.9 million people and continues to expand.

Ranked as the number one business climate by Site Selection Magazine, Atlanta Metro is an outstanding place to do business.