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Atlanta Real Estate Market | Office Market Report 2021 Q4

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Atlanta’s office market ends challenging year on the upswing.

  • Absorption was positive for a second consecutive quarter, showing continued signs of recovery for Atlanta office.
  • The year’s overall occupancy loss in conjunction with elevated space deliveries have led to a decade-high vacancy rate.
  • Though rising 3% year-over-year, quarterly rental rate increases are beginning to slow.
  • Occupancy gains of the last two quarters show promise for positive activity continuing in 2022; however, some headwinds still remain.

Atlanta office market overview

The final quarter of the year showed continued progress for the Atlanta’s office market as just under 500,000 square feet of space was absorbed. This marks the second consecutive quarter with more space occupied than vacated and helps fill some of the void created in the first half of the year. Nevertheless, the occupancy losses of Q1 & Q2, combined with the highest annual amount of space delivered since 2002 have resulted in the market’s highest office vacancy rate in a decade. Fortunately, leasing activity returned convincingly in the back half of the year, bolstered by back-to-work initiatives, expansions, and large, new-to-market leases.

Atlanta real estate market forecast

While conditions appear to be looking up for the office market, challenges do remain. Heading into 2022, the ongoing pandemic continues to muddle the office scene in terms of confusing tenants on their space needs, and also creating short-term or long-term questions as to the length of their leases. Additionally, soaring construction costs are pushing build-out costs down to tenants as allowances are not covering. Inflation in general is testing the overall economic recovery adding to the uncertainty affecting office decisions. Fortunately for Atlanta, the prospects of new business remain high given the metro’s location in the Sunbelt where many companies are migrating. Examples of these played out during the second half of the year with large leases and expansions by Carvana, Visa, Micron and Cisco transpiring. This activity is anticipated to continue in 2022, providing an optimistic outlook for the metro area’s office fundamentals; however, the pandemic’s ongoing impact will be closely monitored.

 
 

2021 Q4 Atlanta Office Report 2022 Atlanta Office Market Forecast

Atlanta Real Estate Market | Office Market Report 2021 Q4

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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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