The Atlanta office market has changed this year. So much so that it can now be considered a landlord’s market and as such, tenant expectations will need adjust accordingly. .
Here are some of the trends we can expect in 2015:
- Buckhead and Central Perimeter continue to be red-hot office markets, but improvement is seen overall.
- Recasting leases, even 6 to 9 months before expiration, can be a challenge.
- Concessions are tightening which translates to less free rent on new deals and potentially none on renewals.
As our economy continues to grow – jobs in Georgia are expected to rise by 2.3 percent during 2015 – office rents in most of Metro Atlanta will increase; they almost double doubled the rate of inflation in 2014. Class “A” properties will remain more attractive as Class “B” and “C” properties are still looking to recover. In fact, Three Alliance Center in Buckhead is likely to be the first $40.00+ per foot, Class “A” office building in Atlanta in 2015.
A few development highlights for 2014, which are sure to enhance the already vibrant array of recent attractions, include Buckhead Atlanta, Avalon and The College Football Hall of Fame. Next year, I look forward to visiting in 2015 Ponce City Market and Krog Street Market.