Atlanta Office Market Stuck in Quicksand

After the worst absorption year on record in 2023, the Atlanta office market
has gotten off to a slow start in 2024. A recent Transwestern market study revealed Q2 continued the slide, seeing negative absorption of 217,451 square feet across Class A and B properties. Since the start of 2023, Atlanta has lost over 4.8 million square feet of space, one of the worst stretches in the market’s history.

The amount of space available for sublease has continued to rise despite some deals getting done and other subleases rolling and converting to direct vacant space. Atlanta added a further 500,000 square feet to the sublease market in 2024,

In Q2 2024, Atlanta’s overall vacancy rate increased 30 basis points to 26.0%, with the Class A vacancy rate rising 50 basis points from 29.2% to 29.7%. Asking rents saw a small increase of $0.02 in Q2 2024. Three buildings delivered a total of 508,641 square feet in Q2, with more anticipated deliveries in the second half of 2024. With no groundbreakings so far in 2024, this marks the least amount of square feet under construction in Atlanta since 2015.