Atlanta’s office market kicks off the year with a slow start.
- Absorption returns to negative territory slowing the positive momentum that has been building up for Atlanta office.
- Overall office vacancy takes a slight step in the wrong direction.
- Average rental rates continue to climb at a slowing pace.
- Investor appetite remains strong with almost $1billion in transactions.
Atlanta office market overview
The start of the year was not a continuation of progress, but rather a regression for the Atlanta office market. After ending the year on a good note, Atlanta finds itself back in negative absorption territory again at roughly -425,000 SF. This demonstrates Atlanta’s struggle to find level footing since the onset of the pandemic and a slow start to this year in leasing activity. However, year over year Atlanta finds itself in an improved position and outlook as many companies return to office and others relocate their headquarters to Atlanta.
Atlanta real estate market forecast
After ending the year on a good note, Atlanta’s office absorption finds itself back in the red. The lack of leasing activity to start the new year in combination with a handful of move outs can be attributed to this result. However due to recent signings and future move ins, the outlook on Atlanta’s office market remains optimistic.