Power Breakfast: Office vacancies keep rising, Delta, CCE, Wachovia, stimulus

This recession has really clobbered commercial real estate here.

AJC reporter Gertha Coffee writes that it could take more than a decade to fill all the vacant office space in metro Atlanta.

The glut of commercial space — most apparent in Buckhead with more than 3 million square feet of empty space — challenges any thoughts of constructing new towers in metro Atlanta for years to come, Coffee writes.

Overall, the metro Atlanta office market has 24 million square feet of vacant office space. The absorption rate — move-ins vs. move-outs — showed 59,000 square feet of negative absorption in the third quarter of 2009, according to a report by Richard Bowers & Co.

That was the fourth consecutive quarter of negative absorption and the second longest period of negative absorption since the company started tracking the Atlanta office market in 1987.

As it stands, Coffee reports, metro Atlanta’s office vacancy rate for the third quarter was 18.1 percent, up from 15.7 percent for the same period in 2008, according to the Bowers report.

Also in the AJC:

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2 comments Add your comment

clyde

October 29th, 2009
7:25 am

It would appear to this jaundiced eye that the stimulus money is being pocketed by recipient companies and **** are being told to cover up it’s misuse. Excuse me;the results are being misrepresented.

Lloyd Braun

October 29th, 2009
9:40 am

All RE product types; office, housing, retail, industrial; were built with the expectation of Atlanta’s explosive growth of the ’90’s – an imprudent expectation.

Now, with job losses that are near the nation’s top and unemployment that is closing in on 11%, not only does Atlanta have way too much product, but there hope of stabilizing the supply with 90’s type growth is a pathetic pipe dream.
Mazeltov,
Brauny