Savills Studley Releases Atlanta Q3 2016 Office Market Report

Savills Studley, the leading global commercial real estate services company specializing in tenant representation, has released its 2016 Q3 Atlanta edition of the Savills Studley Office Market Report.

The quarterly report is an in-depth compilation of office leasing statistics and trends, major transactions, submarket comparisons, employment trends and investment and development trends specific to the Atlanta market.

According to Savills Studley Executive Managing Director John Flack, Transaction velocity seems to have tapered off compared to recent quarters, particularly when compared to 2014 and 2015. Rental rates for most office product in Atlanta have reached all-time highs but seem to have plateaued; as of late we anticipate this to continue through the end of 2016."

Highlights from the 2016 Q3 Atlanta Office Market Report include:

• Tenants in Buckhead have seen rents spike by more than 20 percent above the peak rent achieved in late 2008 and Central Perimeter rents have gone up by more than 7 percent from last year
• Atlanta employment growth is weakening, leasing is running about 20.0 percent below its long-term average and availability rates have been slowly rising. Office-using employment, the core catalyst for office space demand, has been tailing off in recent months potentially signaling a further slowdown
• Availability is creeping up and rose for the first time in the last four quarters. While developers have kept new construction under control, the new product is providing tenants more options
• The sublease market has also seen additional availabilities as companies continue increase efficiencies and reduce overall footprints

The 2016 Q3 Savills Studley Atlanta Office Market Report, as well as a national report and reports for each of its 29 major U.S. markets, can be found on Savills Studley’s website.