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Atlanta Real Estate Market Trends | Downtown Atlanta Office Q4 2020

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Downtown Atlanta experiences its worst annual occupancy loss in a decade in 2020.

Key Takeaways

  • Downtown Atlanta experienced its worst annual occupancy loss in a decade in 2020.
  • Downtown's vacancy rate increased to 13.2%.
  • Despite occupancy losses, the submarket did experience significant leasing activity.
  • Construction began on 760 Ralph McGill in the fourth quarter of 2020.
  • The submarket is anticipated to see more losses in the first half of 2021.

Overview

Downtown finished the year with its worst annual occupancy loss in a decade. American Cancer Society's downsizing of 274,000 square feet in the fourth quarter of 2020 capped off a tough year for the submarket.

Because of the loss of occupied space, Downtown Atlanta's vacancy rate increased to 13.2%; the highest since 2017.

Despite of the negative absorption, the submarket did see some significant leasing activity. Mailchimp announced it would be preleasing 300,000 square feet for a new building on the northern boundary of Downtown Atlanta. Additional Boston Consulting Group announced its expansion at 100 Peachtree later in the year.

With an anchor tenant in place, New City LLC began construction of 760 Ralph McGill in the fourth quarter.

Downtown Atlanta is anticipated to see more losses in the first half of 2021 as expected move-outs and contractions transpire.


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Atlanta Real Estate Market Trends | Downtown Atlanta Office Q4 2020

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