Suburbs Clobbered as Office Vacancies Soar

ATLANTA-The area’s 118.4 million-sf office inventory of class A, B and C product posted a shrinking 301,312 sf of net absorption and a growing 9.74% vacancy level in the second quarter as major public companies and high-tech tenants halt expansion plans and sublease their existing space, according to a new analysis by locally based Richard Bowers & Co.

By comparison, second-quarter 2000 vacancies overall were 8.43%; net absorption, 1.6 million sf; and total existing square footage of 111.53 million or 6.87 million less than today’s inventory.

Suburban submarket vacancies are spiraling upwards. For example, the smallest of the total 17 submarkets, the 212,000-sf I-75 corridor, has a class A vacancy level of 33% and a class B vacancy of 13.08%. But its 75,300 sf of class C product is 100% leased.