Press Releases

May 09, 2018


ATLANTA – Rising demand for Atlanta’s medical office space resulted in the decrease in market vacancy to 9 percent in first quarter 2018, its lowest level since 2003. According to research by Transwestern, absorption posted at 372,377 square feet, nearly twice the space absorbed in fourth quarter 2017 and more than half of 2017’s total.

“Healthcare continues to be a growth engine for Atlanta’s economy,” said Steve Hall, Transwestern Senior Vice President. “Due to low vacancy and limited construction, medical office demand at hospital campuses is significantly outpacing supply. Increased leasing activity has pushed rents up by 3 percent year over year, and we foresee heightened investor interest in the market as a result.”

First quarter 2018 reported the strongest demand in the North Fulton and Northwest submarkets, where there is little to no new medical office construction, followed by South Atlanta. At the close of the quarter, 548,291 square feet was under construction throughout Atlanta, most of which is in submarkets with a very low vacancy rate. About two-thirds of the developing space is already leased. Medical office asking rates now average $23.10 per square foot, and the average sale price is at $374 per square foot.

“As Atlanta’s population and economy continues to outperform the nation, we expect high demand in Atlanta’s tight medical office market to further the trend of rent growth and a downward-ticking vacancy rate over the next 24 months,” said Keith Pierce, Transwestern Director of Research for the Southeast U.S.

Download Transwestern’s full Atlanta medical office report: https://transwestern.com/market-reports

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Transwestern is a privately held real estate firm of collaborative entrepreneurs who deliver a higher level of personalized service – the Transwestern Experience. Specializing in Agency Leasing, Tenant Advisory, Capital Markets, Asset Services and Research, our fully integrated global enterprise adds value for investors, owners and occupiers of all commercial property types. We leverage market insights and operational expertise from members of the Transwestern family of companies specializing in development, real estate investment management and research. Based in Houston, Transwestern has 35 U.S. offices and assists clients through more than 180 offices in 37 countries as part of a strategic alliance with BNP Paribas Real Estate. Experience Extraordinary at transwestern.com and @Transwestern.

Media Contact:

Typhanie Stewart

954.873.2204

typhanie@stir-communications.com

twmediarelations@transwestern.com

Steve Hall

Senior Vice President

Atlanta, Georgia

+1 (404) 842-6560