While there were no new office construction completions in 2016, 2017 is expected to be a robust year, with 1.8 million square feet set to deliver in the coming quarters at 41% preleased. This includes The Battery at Suntrust Park's 2 Ballpark Center, currently 96% preleased, and the 200,000-square-foot Riverwood 200 in the Cumberland submarket, which is 74% preleased. Synovus will occupy 106,000 square feet of the 173,000-square-foot building at 3400 Overton, due to deliver in the second quarter.

“Despite being in the midst of an extended expansion period, there have been no signs of slowing,” Jorgensen says. “Though there is a big test looming with large new deliveries hitting the market, it appears, unlike in 2008, the level of pre-leasing activity positions Atlanta as a market where both owners and tenants will reap the rewards of new inventory additions.”

Thanks in part to its many academic institutions, Atlanta is home to a sizable, young talent pool. As a result, companies are developing innovation centers to attract high-quality talent.

Over the past few years, Midtown has become a hotbed for companies moving into those innovation hubs, including Tech Square, One Atlantic Center, and 715 Peachtree. Once completed, the 730,000-square-foot. Coda building at The Georgia Institute of Technology will be able to host several more potential businesses.

The start of 2017 marks the 13th straight quarter of rent increase with overall office rates finishing the quarter at an all-time high of $24.38 per square foot. While class A set a record of $26.81, class B and C properties rose to $19.63 and $21.17 per square foot, respectively. These trends are expected to continue in the short term as new class A product is set to deliver, which will post some of the highest rates in the market.

ATLANTA—Office market activity in Atlanta took a step back to start the year, posting 70,950 square feet of negative absorption. That's according to CBRE's Atlanta Research team.

The bright spot was Downtown and Buckhead office submarkets. These neighborhoods saw the greatest amount of absorption, posting 94,737 square feet and 70,557 square feet of office space respectively. But class A properties countered the growth with negative 264,346 square feet, respectively.

Due to several large office tenants vacating speculative space to move into owner-occupied space, Atlanta experienced negative absorption levels, pushing vacancy rates to 16.9%. Strong office leasing and rising rents in the first quarter of 2017 resulted in more than 1.9 million square feet of office leasing activity, with class A representing 1.3 million of the space.

“The Atlanta market has been thriving since emerging from the Great Recession and is in an enviable position relative to other large markets,” Toby Jorgensen, a senior research analyst at CBRE, tells GlobeSt.com. “In fact, CBRE Econometric Advisors ranked Atlanta's office market as the most recession-resistant markets in the nation due in large part to strong performance metrics and moderate rent growth characteristics. Chief among Atlanta's selling points are its abundance of talent, business-friendly environment, diversified tenant base, and low cost of living and doing business.”

While there were no new office construction completions in 2016, 2017 is expected to be a robust year, with 1.8 million square feet set to deliver in the coming quarters at 41% preleased. This includes The Battery at Suntrust Park's 2 Ballpark Center, currently 96% preleased, and the 200,000-square-foot Riverwood 200 in the Cumberland submarket, which is 74% preleased. Synovus will occupy 106,000 square feet of the 173,000-square-foot building at 3400 Overton, due to deliver in the second quarter.

“Despite being in the midst of an extended expansion period, there have been no signs of slowing,” Jorgensen says. “Though there is a big test looming with large new deliveries hitting the market, it appears, unlike in 2008, the level of pre-leasing activity positions Atlanta as a market where both owners and tenants will reap the rewards of new inventory additions.”

Thanks in part to its many academic institutions, Atlanta is home to a sizable, young talent pool. As a result, companies are developing innovation centers to attract high-quality talent.

Over the past few years, Midtown has become a hotbed for companies moving into those innovation hubs, including Tech Square, One Atlantic Center, and 715 Peachtree. Once completed, the 730,000-square-foot. Coda building at The Georgia Institute of Technology will be able to host several more potential businesses.

The start of 2017 marks the 13th straight quarter of rent increase with overall office rates finishing the quarter at an all-time high of $24.38 per square foot. While class A set a record of $26.81, class B and C properties rose to $19.63 and $21.17 per square foot, respectively. These trends are expected to continue in the short term as new class A product is set to deliver, which will post some of the highest rates in the market.