Office

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…

The addition of uncommitted office inventory and persistent economic uncertainty resulted in a somewhat distressed third quarter for Atlanta. However, while vacancy and sublease available inventory have continued to trend upward in recent quarters, leasing activity in the third quarter was at a year-to-date high of 2.1 million SF leased, with suburban submarket Northwest leading the way in tenant demand. Average lease sizes are shrinking as corporations reevaluate footprints and are often committing to less…

Atlanta’s office market hit a 12-year high at 19.1% vacant at the end of Q2 2023. This time last year, companies absorbed 1.3 MSF, in stark contrast to this quarter’s -1.6 MSF. While leasing activity increased from last quarter, tenants continue to evaluate current footprints and determine future space requirements. AT&T, a major player in Atlanta’s office market, shed almost 500,000 SF in Q2 2023 as it announced consolidation, but in early July committed to…

Despite an overall slowing of office fundamentals nationally, Atlanta’s office market has posted positive overall activity for four consecutive quarters. Vacancy ended Q1 at 18.4%, a 10-basis point decrease from the previous quarter. Net absorption, while not as robust as quarters past, was in the positive thanks to major tenant move ins from Zaxby’s (51,493 SF) and TSA (44,000 SF) in the Central Perimeter and South Atlanta submarkets. Increasing interest rates and macroeconomic concerns placed…