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Big Peach Office Leasing Drops Off in Q3

ATLANTA-Brokers are seeing fewer, yet bigger, deals as third-quarter vacancy tops 20%.

By Carl Cronan | Updated on October 06, 2009

ATLANTA-Leasing activity in the local office market has fallen by as much as 60% over the past year, yet brokers are getting plenty of calls from companies seeking better and bigger space options, according to recent research reports. A combination of sublease and newly built space is attracting greater interest by prospective tenants, though some are opting to stay put or expand within their current buildings.

At least 6.3 million square feet of active office requirements are being tracked by Jones Lang LaSalle through the third quarter as more firms explore space availability in the tenant-favorable marketplace. At least 1.2 million square feet is being scouted in the Midtown submarket, while Downtown and Buckhead are also attracting attention.

Whether this means major moves are imminent remains to be seen. For example, healthcare company Kaiser Permanente shopped around for more than 18 months before deciding to renew and add to its offices at Piedmont Center, totaling 212, 000 square feet, according to Jones Lang LaSalle, which handled the September transaction.

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