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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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Scott Amoson

Director - Research

Atlanta

Scott is the Director of Research for Colliers International in Atlanta, Georgia.  In his role, Scott supports all of the company's brokers in the Atlanta office.  He also manages the Research Associate in the company, and mentors an intern annually during the summer.

Scott began his real estate career in 2000 as a research assistant with Richard Bowers & Co., a local brokerage firm.  He joined Colliers International in Atlanta in 2003.  Scott specializes in aiding the company's clients with geographical, informational and analytical research.  With his extensive knowledge, he provides customized research data including:  market trends, lease and sales comparables, plats/ownership information, demographics, prospect information and economic information.  In addition to supporting the company's brokers and staff, his other responsibilities include compiling and writing quarterly market and submarket newsletters, maintaining the company's internal database of over 10,000 sales and lease transactions, and tracking news/trends related to Atlanta's commercial real estate market.  He is frequently called upon by local news sources for his knowledge and expertise of real estate matters in Atlanta.

As a member of the Colliers International Research Council, he advises on quarterly conference calls and provides valuable input on matters directing the research platform for Colliers International.  Scott was recently selected as the Research Ambassador for the Southeast Region as a part of Colliers International's Centers of Excellence platform.

Scott is a native of Atlanta, and enjoys spending time with his wife Lupe and daughter Sienna.  He is an avid golfer and loves vacationing with family.

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