The increase in asking rents for trophy space in Atlanta increased 27.3 percent over the past five quarters. That beat increases in Raleigh, North Carolina, which saw rents increase by 23.9 percent, and Oakland, California, which experienced a 15.4 percent increase in rents.
A new report from JLL also reveals Atlanta still offers some of the lowest asking rents of any office market in the country, averaging $25.80 per square foot. That’s good news for corporate recruiters.
“This is one of the many reasons that corporate occupiers take such a strong interest in relocating to Atlanta, building a regional presence here or expanding their footprint,” said Juliet Potter, Vice President of Research for the Atlanta Market.
The findings were included in JLL’s proprietary 2015 Digital Skyline, which identifies and tracks micro-segments of 47 city centers across North America. The Skyline features trophy and Class A buildings where tenants and investors alike focus demand for office space in a flight to quality and efficiency.
“Atlanta’s real estate market has entered the expansion phase of the cycle and the class A office sector has entered a “Landlords” market.” said Mike Sivewright, JLL’s Market Director for the Atlanta region. “With the rebound of the real estate market and little new office supply in the development pipeline asking rents are expected to continue to increase well beyond current levels, Atlanta’s trophy buildings remain largely occupied. As a result, many companies are looking to Class B space as their primary option.”