OFFICE RENT DROP SLOWS
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The Atlanta office sector appears to have adopted the mantra ?slow and steady wins the race,? says Reis' Brad Doremus. While the metro?s rents did not sprint as fast as the rest of the country in the good times, they also avoided cramping up as bad when times got a bit ?Hare?-y. Atlanta's effective rents have fallen in ten straight quarters (since Q2 ?08), one more than national effective rents, but have decreased at a much slower clip (6.7%) than the rest of the country (12.1%). If Reis data is extended back to Q1 ?06, Atlanta effective rents are up just 0.66% compared to a huge 6.0% increase for the US. JLL's Clark Gore (with a freshly shaved head after losing a recent bet) says his firm is seeing this trend in Atlanta, and that we're finally ?bumping along the bottom.? But he says JLL suspects upward pressure on rates and/or downward pressure on concessions will begin in some submarkets as early as next year. |
