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Atlanta Real Estate Market | Office Market Report 2021 Q1

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Rough start to the year for Atlanta's office market

  • Atlanta office sees record negative absorption to start the year
  • Overall office vacancy is the highest since 2013
  • Average rental rates continue to show upwards movement
  • Outlook remains challenged as steady increases in space demand will be key to recovery

Atlanta office market overview

On the heels of last quarter's 2 million square-foot occupancy loss, Atlanta's office market finds itself in a deep hole to start 2021, experiencing its worst quarterly absorption ever in its history in Q1. The net occupancy loss of 2.8 million square feet rivals the negative absorption witnessed in 2009 following the Great Recession.

Although hard to take any positives away from this, most of the vacancies added over the past quarter were already in the works. Tenant moves as a result of the pandemic were limited. Additionally, leasing activity has begun to pick back up following a slower year of demand.

Atlanta real estate market forecast

Though some adversity lingers, the outlook is upbeat. Overall leasing activity, while still passive, is beginning to pick up. The need for space has not subsided and this can be seen in large transactions by Global Payments, ServiceMaster and John Marshall Law School. Additionally, recent announcements by Airbnb, Adecco, Microsoft and Google prove strong demand still persists for Atlanta's office market.

As leasing levels begin to return to normal, this will benefit overall market performance in the years to come. in the near term, anticipated occupancies from some of Atlanta's more recent wins should factor into more positive results through the end of the year.

 

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Atlanta Real Estate Market | Office Market Report 2021 Q1

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Jodi Selvey

Senior Vice President, Principal

Atlanta

Jodi Selvey specializes in Office Tenant Representation. She works with her clients to provide strategic planning and solutions to their real estate needs. Ms. Selvey offers over 30 years of comprehensive real estate experience which includes leasing a number of corporate headquarters locations, office building sales, site selection, restructuring of leases, and providing detailed financial analyses. Jodi executes in a creative way to solve complicated transactions, whether she’s asked to sell a difficult building, meet a nonprofit organization’s financial benchmarks, or seek out nontraditional solutions for a client. Additionally, Ms. Selvey works with national clients on multicity assignments, thereby creating a single point of contact for all their real estate needs across the country.

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