Key Takeaways

  • Following the negative start to the year, Atlanta’s office absorption turned positive in the second quarter with just over 616,000 square feet of space absorbed. This has brought the mid-year absorption total to +460,286 square feet.
  • In spite of the positive absorption, Atlanta’s overall vacancy rate increased slightly quarter-over-quarter due to the delivery of new office product.
  • Eleven buildings delivered this quarter totaling almost 1.5 million square feet. This is the highest quarterly amount added in over 7 years. Three Alliance, Riverwood 200 and 8000 Avalon were the largest office buildings to deliver.
  • Although shy of anticipated absorption, the positive activity in the second quarter will likely carry over into the latter half of the year, leading to a sixth consecutive year of occupancy gains in Atlanta’s office market.