What is the average price of space per sq ft for lease

by Danesha Ritzberg

According to commercialcafe.com the average price per square foot in Metro Atlanta for office space is

2020 Office Space Rent & Sales

$30.672020 Avg. Asking Rent
4.37%Y-o-Y Avg. Asking Rent Change
17.16%2020 Office Vacancy Rate
$508.1M2020 Total Office Sales
$209.65Avg. Sale Price/Sqft

Atlanta office price per square foot in 2020 was $30.67 on average. This marked a +4.37% change in office space price per square foot compared to the previous year. The local office market recorded an average vacancy rate of 17.16% across all asset classes combined. The 21 transactions that closed here throughout 2020 amounted to a total sale volume of $508.1M. Atlanta office space commanded an average sale price per square foot of $209.65.

Average Rent by Office Class

2020 Average Office Rent per Square Foot

Atlanta Class A Office Space$32.32
Atlanta Class B Office Space$23.56
Atlanta Class C Office Space$17.84
Georgia Class A Office Space$30.31
Georgia Class B Office Space$21.23
Georgia Class C Office Space$16.05

Atlanta, GA Office Asking Rents by Class

Average office rent in Atlanta rested at $30.67 per square foot in 2020. As would be expected, office rent price showed some variation from one asset class to another. As such, the asking rent for class A office space in Atlanta averaged $32.32 per square foot. Across all submarkets, class B office space recorded an average asking rent of $23.56 per square foot. Meanwhile, assets encompassing class C office space saw asking rents of $17.84 per square foot, on average. Comparably, statewide Georgia average office rents by class in 2020 were: $30.31 per square foot for class A office space; $21.23 per square foot for class B office space; $16.05 per square foot for class C office space.

2020 Office Vacancy Rates in Atlanta

Submarket	Asking Rents	Vacancy Rates
Midtown	$36.67	16.90%
Buckhead	$36.03	19.25%
West Atlanta	$35.59	19.47%
Central Perimeter	$30.84	16.90%
Brookhaven	$28.16	8.99%
Galleria	$28.14	15.83%
Central Business District	$25.17	19.79%
Northlake\Chamblee	$20.69	23.95%
South Atlanta	$20.31	21.80%

Data provided by Commercial EdgeSubmarket differences in factors such as property mix, degree of accessibility, and availability of amenities influence not only variation in office rent price, but also in vacancy rates. The overall office vacancy rate on the Atlanta market was 17.16% in 2020. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in Atlanta was 8.99% in the Brookhaven submarket, while the highest office vacancy in the market was 23.95%, recorded in Northlake\Chamblee.

Office Spaces for Rent in Georgia

Atlanta Office Sale Price per Sqft

$209.652020 Avg. Price per Sqft
1.39%Y-o-Y Avg. PpSF Change
$508.1M2020 Office Sales Volume
212020 Number of Transactions

Atlanta, GA Sale Price per Sqft Trend

Atlanta Avg. Sale Price per Sqft in 2020$209.65

Georgia Avg. Sale Price per Sqft in 2020$165.65

Atlanta office space cost in 2020 marked a +1.39% change compared to the previous year. The sale price for office space in Atlanta averaged $209.65 per square foot in 2020, across all market subdivisions and asset classes. Conversely, the statewide Georgia average office sale price during the same time period was $165.65 per square foot.

2020 Office Sales Volume

Atlanta, GA Total Office Sales Volume in 2020$508.1M

Atlanta, GA Total Number of Office Sales Closed in 202021

A total of 21 deals closed on the Atlanta office market in 2020, adding up to a yearly sales volume of $508.1M. Notably, the largest transaction on the market saw 30 Allen Plaza change hands for $89,940,000 on 11/17/2020.

Largest Atlanta Office Sales in 2020

Property name	Address	Date	Price
30 Allen Plaza	30 Ivan Allen Jr. Blvd NW	11/17/2020	$89,940,000
55 Allen Plaza	55 Ivan Allen Jr. Blvd NW	3/19/2020	$79,000,000
Stockyards	944 Brady Avenue NW	1/17/2020	$69,700,000
Technology Enterprise Park	387 Technology Circle NW	12/30/2020	$60,000,000
244 Perimeter Center Pkwy	244 Perimeter Center Pkwy	2/11/2020	$41,700,000

Data provided by Commercial Edge

2020 Office Construction in Atlanta, GA

Atlanta, GA Total Sqft completed in 20201,727,776
- Atlanta, GA Total Sqft under construction in 20216,084,689
During 2020, 1,727,776 square feet of new office space were delivered across the market. At the close of 2020, the Atlanta office inventory included 16 buildings equal to or larger than 25,000 square feet, which comprised 1,727,776 square feet of office space. Looking forward, development activity throughout 2021 is estimated to add 6,084,689 square feet of office space to the market, before year-end.

Largest Office Properties Recently Completed in Atlanta
Office building	Address	Sqft	Completed
Midtown Union	1331 Spring Street, 30309	644,046	2022
One Phipps Plaza	3550 Peachtree Road, 30326	365,263	2022
14th+Spring	1150 Spring Street, 30309	317,500	2022
760 Ralph McGill	760 Ralph McGill Blvd NE, 30312	300,000	2022
Echo Street West	NEC Griffin Street NW & Donald Lee Hollowell Pkwy NW, 30318	300,000	2022
The Grady Center For Advanced Surgical Services	90 Jesse Hill Jr Drive SE, 30303	275,000	2022
Altmore	5775 Peachtree Dunwoody Road, 30342	229,074	2022
Northlake Mall - Redevelopment - Offices	2201 Henderson Mill Road, 30345	224,000	2022
Campanile Building - Expansion	1155 Peachtree Street NE, 30309	150,000	2022
Lee + White - Building 929	929 Lee Street, 30310	90,000	2022