Atlanta Office Investment Sales Lag, Maturing Loans Climb

Office sales through the first half of the year totaled $23 billion, with assets trading at an average price of $189 per foot, according to a recent report from Yardi Research. The Atlanta market has been steady in terms of investment performance: Office assets sold this year in the Georgia market changed hands for an average of $163 per square foot, which was not much below the 2019 average sale price of $168 per square foot.

Aside from the relatively stable sale price for office space in Atlanta, the sales volume has been lower in the last three years compared to 2019 through 2021, and prominent properties have traded at discounted prices. One such example was the office high-rise at 1100 Peachtree, which Street Capital purchased this May for nearly $140 million. The property was previously acquired for nearly $154 million in 2007.

A troubling statistic reports that Atlanta is experiencing the nation’s highest percentage of loans maturing (50.5%, valued at more than $11 billion).