The strongest quarterly absorption was seen in North Fulton. However, Downtown Atlanta also had a healthy quarter. For the year to date, Midtown and the Northwest are Atlanta's top office performers. Asking rents continue to rise almost everywhere, with Central Perimeter the only submarket in which asking rents dipped slightly.

There is still a contest of sorts between location and cost in companies' site selection decisions. As a result, the relatively small class B sector in Buckhead continues to enjoy single-digit vacancy, as does the equally small class A portion of the Northlake market, an area that is typically dominated by lower-cost properties.

ATLANTA—It's getting harder to find office commercial real estate in Atlanta. Overall office space vacancy declined slightly to 16.4%, according to Transwestern's latest report. That, the firm said, is due largely to healthy class A office demand.

Atlanta office space absorption was soft in the third quarter, following a very healthy second quarter. Atlanta reported negative office absorption in the first quarter, but the market reports positive net absorption of about 75,000 square feet year-to-date. That's essentially flat in a market of this size.

“Consistently during the past two years, the Atlanta office sector—in both A and B office classes—has seen aggressive rent growth in every major submarket,” Keith Pierce, senior research manager with Transwestern, tells GlobeSt.com. “In reaction to rising rents in the tightening market, businesses within industries driving office market trends are reconsidering space requirements and locations and becoming more efficient which is being reflected in lease transactions.”

According to Transwestern, demand is clearly stronger in urban submarkets, especially Midtown and Downtown, than in the suburbs. The firm reports demand has been weighted heavily toward class A space throughout the year.

The strongest quarterly absorption was seen in North Fulton. However, Downtown Atlanta also had a healthy quarter. For the year to date, Midtown and the Northwest are Atlanta's top office performers. Asking rents continue to rise almost everywhere, with Central Perimeter the only submarket in which asking rents dipped slightly.

There is still a contest of sorts between location and cost in companies' site selection decisions. As a result, the relatively small class B sector in Buckhead continues to enjoy single-digit vacancy, as does the equally small class A portion of the Northlake market, an area that is typically dominated by lower-cost properties.