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Colliers Report: Atlanta Office Market Saw Net Occupancy Loss of 251K-SF in 2020

After a rocky fourth quarter, Atlanta’s office market finished 2020 with a net occupancy loss totaling 250,968 square feet, according to the Colliers Atlanta Year-End 2020 Office report. Colliers attributed Atlanta’s poor performance in 2020 to the ongoing Covid-19 pandemic.

Across all of Atlanta, every core office submarkets except for Central Perimeter ended the year with occupancy losses. The negative end to the year resulted in Atlanta’s office vacancy increasing to 14.5% overall and 17.4% for Class A. Those numbers mark the highest levels the market has seen in six years.

Additionally, the average rental rate for Atlanta office declined for the first time in seven years. Colliers predicts that the upwards trend in rental rates the market experienced is likely over for some time. Future absorption gains are expected to be limited as a result of only half of the leasing activity of the past several years taking place in 2020.

However, all is not doom and gloom according to Colliers, as Atlanta remains as one of the most attractive and stronger office markets in the nation despite current headwinds. The city continues to win headquarter relocations, such as the Papa Johns headquarters deal, which was announced in November. The metro are also continues to solidify its reputation has a growing tech hub with Microsoft’s 523,000-square-foot lease in Midtown and Mailchimp’s future expansion to 300,000 square feet in a new building as well as Google’s expansion of 300,000 square feet at 1105 West Peachtree.

For comments, questions or concerns, please contact David Cohen

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About David Cohen

David Cohen is Southeast Editorial Director at Connect Commercial Real Estate. David is a media veteran with more than 10 years of experience in journalism, copywriting and communications across a variety of roles. He is responsible for covering commercial real estate news and trends in the Southeast, Florida, Washington D.C. and Boston at Connect CRE as well as specializing in the Student Housing sector. Prior to joining Connect, David was the editor of Northeast Real Estate Business magazine and Student Housing Business magazine at France Media as well as spending time freelancing for ESPN and the Associated Press in the fast-paced field of live sports event production. He is also an owner and investor in multifamily real estate in Atlanta, GA. David currently resides in Atlanta and graduated from the College of Communication & Information at the University of Tennessee Knoxville.