Top Atlanta Submarkets for Construction Activity in 2017
- Apr 24, 2018
As a market on a path of constant growth, Atlanta’s office sector isn’t showing any signs of slowing down anytime soon. Development activity is still high despite a slight slide in 2017, but developers still delivered quality office space, adding to an inventory that seems to be in ever-growing demand. That has in turn further contributed to rising rents in what is already a landlord’s market.
Roughly 2.5 million square feet of office space came online in the metro area in 2017. Yardi Matrix put together a list of the busiest Atlanta submarkets in terms of office deliveries, with a direct focus on each newly completed project.
Tucked away in a suburban setting and boasting an inventory of nearly 6 million square feet of office space, Brookhaven is one of Atlanta’s most sought-after secondary submarkets. Tenants seeking quality space in less crowded areas have turned to regions such as Brookhaven, which added one new property to its office stock in 2017. Stream Realty Partners converted the former warehouse at 2700 N.E. Apple Valley Road into Apple Valley Brookhaven, a 70,000-square-foot creative loft office building.
5. Forsyth County
A bustling technology and medical hub, the submarket is one of the fastest-growing areas in the country. Focusing primarily on quality living standards, Forsyth County’s office inventory is quite limited and is mainly composed of medical office space. The only project delivered in 2017 was Richmond Honan’s Forsyth Physician Center, a 92,573-square-foot, Class A property that is fully leased to North Atlanta ENT & Allergy and Resurgens Orthopaedics.
The North Fulton submarket is one of the largest suburban settings in the metro area, providing an expansive inventory of Class A and B office space. Construction activity has mellowed here in the past year, as only one office building came online in 2017: Cousins Properties’ 8000 Avalon. The asset offers 224,000 square feet of space and it is built to meet LEED certification. The Class A property is nearing full occupancy, boasting a notable tenant roster that includes Microsoft, SAP and Crown Castle, among others.
What was once a moderate suburban submarket has become a dynamic and coveted office district. Located just outside the Perimeter, the Galleria is in high demand as companies aim to lease office space in the proximity of The Battery and SunTrust Park. As developers benefit from the accessibility provided by Cumberland Boulevard, two significant projects were delivered in 2017. Highwoods Properties completed the 299,000-square-foot Riverwood 200 and TPA Group added 173,000 square feet to the inventory, with the delivery of 3400 Overton. Both properties are close to full occupancy and LEED proposed.
As one of the most prestigious and expensive submarkets on our list, Buckhead boasts an inventory comprised primarily of Class A+/A office assets, appealing to high-quality tenants. The submarket’s healthy development pipeline thrives on steady demand as developers delivered three new office properties in the past year. Two assets—previously industrial facilities—were transformed into office buildings: 309 East Paces and Armour Yards – 225 & 255 Ottley Drive NE. The third property, Three Alliance Center, offers 500,000 square feet and is 90 percent leased.
1. Central Perimeter
Atlanta’s largest submarket is very much in demand as companies focus on areas in the inner ring of the metro that provide access to a talented employment pool. The Central Perimeter was the most dynamic submarket in terms of construction activity in 2017, with a total of 946,176 square feet of Class A office space delivered. Two major projects came online: State Farm Atlanta Hub – Phase I, acquired by Transwestern shortly thereafter, and 4004 Perimeter Summit, completed by State Street. State Farm occupies the entirety of the 590,926-square-foot hub, while landlord State Street is in search of tenants for its 355,250-square-foot asset.
Images courtesy of Yardi Matrix