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Almost 30% of Atlanta’s Direct Lease Office Space is Vacant
Brokerage firm Savills has released a report showing Metro Atlanta’s office direct vacancy rate is 28.2 percent. It’s the highest level recorded since Savills started tracking the market in 2005 and 26.5 percent higher than last year at this time.
This does not include the sublease supply, which has had a 40-percent YOY increase.
In the second quarter, more than 50 million square feet of combined direct and sublease space was empty. Leasing was at 1.6 million square feet in Q2, up from Q1 but down from 2.2 million square feet in 2022.
Still, Savills says landlords haven’t lowered rent, which increased half a basis point year-over-year to $30.85 per square foot in Q2. Many are offering tenant incentives to draw attention while potential tenants struggle to right-size their offices, with many employees working remotely at least part of the time.
