A good friend of mine, Coy Davidson, wrote a great blog about the Houston Office Market. Coy, like me, works for Colliers International, and the fore mentioned blog entry is title “What Office Tenants Can Expect in Today’s Market”. There are three points that Coy informs office tenants about what they can expect in the Houston Office Market. Those same three points are true for our Atlanta Office Market as well. Here are the three things that Atlanta Office Tenants can expect in today’s market.
- Lower Rental Rates – The average rental rate for Atlanta has dropped from roughly $23.00/Square Foot in 4th quarter of 2008 to roughly $22.00/Square Foot in the 4th quarter of 2009. That is almost a 5% drop in 1 year.
- Increased Concession Packages – Vacancy rates for Class A office space in Atlanta has increased from 17.8% in the 4th quarter of 2008 to 19.9% in the 4th quarter of 2009. The more vacant space that is available in Atlanta, the more concessions landlords have to offer tenants to win their occupancy.
- Flexibility – With rental rates decreasing and concession packages increasing, some landlords are being more flexible with their lease terms in order to preserve higher rental rates with less concessions.
As Coy mentioned in his blog, the opportunity is now. If you’re an office tenant that has two years or less on your lease, the timing is right to secure a great long-term deal for your business. Explore your options, take advantage of the market, and lock into historically great terms for office tenants in Atlanta.
This is great advice for entrepreneurs and local small business owners. The blog post hits on some key points that need to be taken into consideration when it comes to searching for workspace: lower rent and flexibility. Regus, the company I work for, specializes in both. We offer flexibility in our workspace solutions that help business owners and entrepreneurs cut down on the high cost of rent and overheard. In doing so, we help businesses of any and all sizes focus on productivity and growing strong.
In fact, today is the last day of our ‘Win an Office’ Sweepstakes. One lucky business owner has the chance to win a year of fully furnished office space. The contest ends tonight so enter now at http://www.regusatlanta.com. Good luck!