ATLANTA—What are Atlanta's hottest office submarkets? How will job growth fit into the big picture?
GlobeSt.com caught up with JLL Atlanta's Mike Werner to discuss these issues in part two of exclusive interview. You can still read part one: Top Trends in the Atlanta Metro's Suburban Office Market.
GlobeSt.com: Speaking of suburban office growth, vacancy in the North Fulton submarket continued its decline to 15% in Q4 due to 216,000 square feet of absorption in 2017. Do you see this submarket continuing to grow?
Werner: I do think this submarket will continue to grow because of the placemaking opportunities in the submarket and the positive momentum we've seen over the last few years. We're seeing increasing rental rates and large renewals proving tenants want to stay in the submarket.
The North Fulton submarket is a great example of an Atlanta submarket that is seeing tremendous growth, as 14 of the last 15 quarters class A rents have steadily increased. With the deliveries anticipated this year and next, and the employment boom predicted for the North Fulton submarket, I think we'll see employers and investors continue to take a serious look here.
GlobeSt.com: Can you tell us about the job growth potential in the suburban markets of Atlanta?
Werner: Last year, the Atlanta Regional Commission released a report that predicted major job growth along the Ga. 400 Corridor. According to the report, between 2015 and 2040, Metro Atlanta will add more than 1 million new jobs, with almost one-third of those belonging to the Ga. 400 Corridor. The neighborhoods are already attracting residents to fill those jobs, and the Commission expects the corridor to continue to be an engine of economic growth for our region over the next 25 years.
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