• Several planned extra-large move-outs drove negative Q4 absorption, but Trophy absorption was positive, and year-end figures are a significant improvement from this time last year. • Leasing is slowing as high-end availabilities diminish, but absorption stabilized in the second half of the year and vacancy rates are beginning to descend. • Overall asking rates are declining slightly as highend spaces disappear, but rents on leases signed in 2025 continue to show healthy improvement, with Trophy assets executing leases in the low $40s on a triple net basis. • There are positive indicators heading into 2026; fundamentals should strengthen as occupancy losses slow, while strong tenant demand will support longer-term stability in Atlanta’s office sector. Atlanta (Buckhead) Office Market Trends Office activity in Buckhead continued to improve in 2025, building upon a five-year recovery period. Annual absorption was slightly negative (-50,000 s.f.) but improved significantly from the past two years. Activity continues to be concentrated among high-end Class A and Trophy properties: Trophy availability in Buckhead fell from 27.9% to 17.9% over the course of the year as tenants have aggressively targeted the final remaining high-end availabilities. Leasing activity is slowing, but declines have mostly been the result of dwindling availability. Overall vacancy rates declined 60 bps from last year’s peak and are expected to decline more aggressively in 2026 as downsizing activity fades and inventory growth stagnates and becomes negative in some pockets. A recovery in large-scale leasing throughout the Atlanta metro has contributed significantly to positive momentum over the past 18 months: Buckhead saw four leases above 50,000 s.f. executed in 2025, including one new-to-market lease from Dynasty Financial Partners at 1 Phipps Plz. While Class A and Trophy assets are well along the path to recovery in Buckhead, older buildings have not seen the same uplift in recent quarters. Class B and C buildings saw over 400,000 s.f. of occupancy losses over the course of 2025 and are continuing to see vacancy rates rise through the second half of the year. Outlook While leasing has slowed in the past year and some downsizing activity remained in 2025, Buckhead is still well positioned to benefit from the continued uplift of the Atlanta metro. While high-end technology tenants are still demonstrating preference for the Midtown submarket, Buckhead’s location on the urban periphery still outperforms relative to suburban areas or the Atlanta CBD. As Midtown’s recent deliveries continue to fill up, Buckhead is expected to capture more spillover demand in 2026, as the only other market with more than 100,000 s.f. of Trophy supply currently available for lease. MUST's Submarkets Overall Market Statistics Forecast 2025 net absorption (s.f.) -652,948 Under construction (s.f.) 334,000 Total vacancy (%) 26.8% Sublease vacancy (s.f.) 3,045,472 Asking rent (US$ p.s.f.) US$33.72 Concessions Stable Net Absorption and Overall Vacancy Rates Gross Leasing Activity Rental Rates and Going-in Yields CBD Class A cap rate (%) Cap rate Asking rent 1.5 1.0 0.5 0.0 -0.5 -1.0 9% 8% 7% 6% 5% 4% 35% 30% 25% 20% 15% 10% $50 $45 $40 $35 $30 $25 $20 2010 2014 2018 2012 2016 2020 2022 2024 Buckhead Rest of Market 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 8.4M 5.1M 7.7M 4.0M 4.0M 5.8M 6.2M 5.8M 5.6M 6.5M 1.3M 1.2M 1.3M 1.2M 0.7M 1.0M 1.4M 1.9M 1.7M 1.0M 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Net absorption (m.s.f.) Total vacancy (%) / 39 / MANULIFE US REIT
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