Given the state of the national economy, these trends are not surprising, Alan C. Travis, senior research associate at C&W, tells GlobeSt.com. The most glaring statistic revealed in the Q1 report is the 21.3% overall vacancy rate (for 18.1 million sf) of non-CBD product. Availability has swelled since the 4th quarter, when it stood at 19.5%, C&W states.
The central business district, which contains about 13.9 million sf of class A, B and C space, posted a slightly better performance. Vacancies in that submarket climbed to 16.9%, compared to 15.6% the previous quarter.
The central perimeter, an area with nearly 23 million sf of office space and one of Atlanta's biggest submarkets, posted a vacancy rate of 19.1%. As for weighted asking rents throughout the city, they remained relatively flat. C&W reports a $23.91 per sf rate for non-CBD, class A assets. Last quarter, rents for the same product were virtually unchanged-$23.98.
Meanwhile, in the CBD, rental rates dropped minimally, from $21.70 per sf to $21.62 per sf in Q1. Overall class A rents stood at $23.78 per sf at the end of March. For all classes of space, C&W posted a rental rate of $21.64 per sf. In the central perimeter, direct average asking rents came in at $22.13 per sf at the end of Q1.
Sublease space has continued to increase, but one source reports that Q1 has not seen a dramatic rise in the amount of space returned to the market, at least compared to previous quarters.
"I believe there was a one million-sf increase in sublease availabilities during each quarter of 2001," Christoper Shaner, a market analyst at Dorey's Market Analysis Group in Atlanta, tells GlobeSt. "However, during the first quarter 2002, there was an increase of only a quarter of a million square feet (roughly). Might be an early sign of good times on the horizon. Of course, until that number actually decreases, most people won't be too happy."
According to C&W, 5.6 million sf of sublease space throughout Atlanta is vacant.
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