Q4 2023 Atlanta Office Market Report
Although office leasing activity in Atlanta has not fully returned to pre-pandemic levels, the final quarter of 2023 showcased sustained tenant demand, evident in the signing of several new, sizable leases. However, the ongoing reassessment of footprints by tenants has led to an overall increase in both overall and sublease availability, resulting in a record-high vacancy rate of 21.2%. The conclusion of 2023 marked the third consecutive quarter of negative absorption in the Atlanta office market, contributing to a year-end absorption of -2.5 MSF. Despite facing macroeconomic challenges, development activity in Atlanta has remained subdued, offering a potential easing of supply pressures as the market enters 2024.