Fresh 6/17: Atlanta Trip Takeaways (COLD/CUZ/HIW/XHR), ZORI May Data

研报英文原文证据摘录

Fresh 6/17: Atlanta Trip Takeaways (COLD/CUZ/HIW/XHR), ZORI May Data

June 17, 2026

●Available space: There is limited high quality space currently available in Buckhead. Of the market's trophy

buildings, only two have contiguous spaces available over 50K sf. As a result, both companies noted customers

with future expirations are initiating discussions earlier about renewals. The overall Atlanta availability rate is

high but demand differs by submarket and by specific asset - as an example, West Midtown struggles from tough

ingress and egress and has above market average vacancy. Tenants are also leaving downtown for other markets

like Buckhead and Midtown.

●Supply: Any new construction starts are unlikely, which helps support the ability to push rents for companies that

do have well located, high quality space. New construction would require ~$95+ rents on a gross basis, vs the

highest rents in Atlanta now in the low 70s, a large spread. Though there are still some new/delivering assets

with space available, such as 1020 Spring and 1072 West Peachtree.

●Assets that can no longer compete: Leasing is challenging in lower quality buildings in less desirable locations,

and it does not work to just cut rate if a building is not amenitized. Conversions are particularly notable in Central

Perimeter, where 8M sf is coming out of total supply. Unlike conversions in NYC, offices are demolished and

replaced with residential. In Buckhead, at Piedmont Center 4 of 11 Buildings are turning into medical office (we

note this was also highlighted as an asset that wasn't competing during our 2024 tour - see takeaways here).

●Parking revenues: Both companies noted high and growing parking revenues, which are also above pre-covid

levels. This shows improving physical occupancy.

HIW