Savills Studley Releases Atlanta Q4 2016 Office Market Report

1/26/17

Leasing ends year on a strong note, with 2.1MSF leased during the quarter, research shows

Savills Studley, the leading global commercial real estate services company specializing in tenant representation, has released its 2016 Q4 Atlanta edition of the Savills Studley Office Market Report, which indicates that leasing velocity remains strong in the region despite moderately higher costs for tenants.

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, sustained leasing, coupled with negligible construction activity, will continue to present challenging conditions for tenants requiring space in Buckhead, Midtown and Central Perimeter going forward. “Atlanta will remain in the ‘new normal’ of reduced availability and higher rent in 2017,” he said.

Highlights from the 2016 Q4 Atlanta Office Market Report include:

  • Leasing for the year ended on a strong note, totaling 2.1 million square feet in Q4. Major transactions included Anthem at 600 Peachtree St (148,192 SF); FEMA at 3005 Chamblee Tucker Road (120,523 SF); Crawford & Co at 5335 Triangle Parkway (109,172 SF); and the Weather Company at 1001 Summit Blvd. NE (92,272 SF).
  • Availability is falling in the region, ending at 19.3%, a quarter-on-quarter decline of 60 basis points, and a year-on-year decrease of 20 basis points.
  • Asking rents are pushing higher. Class A rent for the region continued to increase, rising by 0.1% to $27.22. For the first time on record, the average asking rent for Class B space exceeded $20.00, jumping by 3% in Q4 to $20.12. As a result, build-out costs are likely to increase in 2017 due to a shortfall in skilled labor.
  • Investors remain bullish on Atlanta’s office market, with sales of office buildings in the region totaling $3.8 billion as of November 2016. While that is roughly 16% below the $4.5 billion sold in 2015, the market is still a hot destination for buyers thanks to the region’s moderate climate, affordable cost of living and access to intellectual capital.


The 2016 Q4 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 webpage.

About Savills Studley

Savills Studley is the leading commercial real estate services firm specializing in tenant representation. Founded in 1954, the firm pioneered the conflict-free business model of representing only tenants in their commercial real estate transactions. Today, supported by high quality market research and in-depth analysis, Savills Studley provides strategic real estate solutions to organizations across all industries. The firm’s comprehensive commercial real estate platform includes brokerage, project management, capital markets, consulting and corporate services. With 29 offices in the U.S. and Canada, and a heritage of innovation, Savills Studley is well known for tenacious client advocacy and exceptional service.

The firm is part of London-headquartered Savills plc, the premier global real estate service provider with over 30,000 professionals and over 700 locations around the world. Savills plc is listed on the London Stock Exchange (SVS.L).

For more information, please visit www.savills-studley.com and follow us on LinkedIn and Twitter @SavillsStudley.