Real estate services firm JLL issued its Most Expensive Streets survey for the U.S., which ranked Peachtree Street –starting in Midtown and heading north to Buckhead, where it changes names to Peachtree Road — as Atlanta’s priciest address per month by square foot.
Peachtree ranked No. 27 nationally.Digs on Peachtree are $32.33 per square foot on average, about $10 more per square foot than the metro Atlanta average.
That’s nothing compared to tech hubs out west or in Manhattan. Sand Hill Road in Menlo Park, Calif., averaged $141.60 per square foot. Hamilton Avenue in Palo Alto, Calif., averaged $124.44 per square foot. Fifth Avenue in New York’s Plaza District averaged $119.27.
You can read the full JLL report here.
As the real estate adage goes, it really is all about location. Peachtree is one of city’s more walkable thoroughfares and much of it enjoys MARTA rail access, said Leigh Martin, a managing director for JLL in Atlanta.
Peachtree’s premium is also a reflection of Atlanta’s historically low vacancy rates and little new speculative construction that has constrained supply and flipped prices in favor of landlords, he said.
Midtown and Buckhead have seen an influx of tech companies and professional services firms. The price premium is starting to drift over to other buildings as the space tightens, Martin said.
“Some of this is directly or indirectly related to the Peachtree brand,” he said.
Metro Atlanta also has one of the nation’s more expensive suburban streets, according to JLL. Peachtree Dunwoody Road, which runs from Buckhead to the Sandy Springs/Dunwoody area, is rated the 26th most expensive suburban street for office rents.
The rate per square foot for Peachtree Dunwoody Road space is $22.82, less than a $1 more than the market average.
To read more about metro Atlanta office market trends, check out Sunday’s print edition of The Atlanta Journal-Constitution or click here.