Downtown Office Market Can’t Keep Up
According to CompStak, the Downtown Atlanta office market is lagging behind submarkets of similar inventory. Despite having a large number of class A buildings, Downtown effective rents are just barely outpacing the market average, while Buckhead and Midtown command significantly higher rates.
Landlord Concessions outside Atlanta Lower
Starting office rents inside Atlanta and in the larger metropolitan area have been relatively flat in the past two years, according to CompStak. More interesting is the ratio between Starting rent and effective rent. When the ratio is lower than one, it means that landlords are providing less in concessions. Inside Atlanta, the ratio has been higher than one for the past two years, but in the rest of the metro, this ratio has quickly dipped below one, meaning that landlords there are providing fewer concessions.