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New Construction Outpaces Demand in Atlanta’s Office Market for Third Year
New construction in Atlanta’s office market has outpaced demand for the third consecutive year, according to a recent Q4 office report from NKF. The report noted concern in the market of the ability to absorb older properties as they are vacated going forward.
Also in 2019, the overall Class A asking rent for Metro Atlanta reached $30.55 per square foot, the first time the market has eclipsed $30 per square foot as a whole. In 2019, 20% of the year’s 1.4 million square feet of net absorption came from new coworking locations. Georgia Tech’s 289,000-square-foot occupancy at Coda in Midtown was the year’s largest single tenant occupancy.
Looking back, more than 11 million square feet of office space was absorbed in Atlanta from 2010 through 2019, with six consecutive years over one million square feet. Overall asking rents climbed more than 35% from 2010 to 2019, while the Class A average rent grew 33.6%.
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