ATLANTA
OFFICE MARKET REPORT: FALL 2023
Return-to-office mandates have not slowed the shedding of office space by tenants. Sublease options also increased to the highest amount of space available ever recorded. In Q3, net absorption declined (-1.34 MSF), with over one million (-1.04 MSF) lost in the suburbs. While asking rental rates increased by $.12 in Class A & B space, and $.18 in Class C, suburban rates are almost $10 less: $27.41 vs. $37.21 in the CBD. Concessions in free rent and TI packages are increasing as Landlords seek to keep occupancy up and attract tenants to their buildings.
41.3 MSF VACANT SF
23.5%
% VACANT
(1.4 MSF)
QRT NET ABSORPTION
436,817 SF
2.1 MSF
DELIVERED SF
UNDER CONS. SF
$31.29
QUOTED RATES
$157 / PSF SALES PRICE
TOP NEW LEASE
TOP DELIVERABLE
TOP SALE
FIRST KEY HOMES CUMBERLAND - 51,442 SF
NORTHSIDE / GA TECH - 265,000 SF
ESTEIN USA CNTL PERIMETER - $175M/$214 PSF
GALLERIA 600
INTERLOCK - PHASE II
THREE RAVINIA
NET ABSORPTION, DELIVERIES, & VACANCY RATE 4M SF
25%
3M SF 20%
2M SF 1M SF -
15%
2017
2018
2019
2020
2021
2022
2023 YTD
10%
(1M SF) 5%
(2M SF) (3M SF)
NET ABSORPTION
NET DELIVERIES
VACANCY RATES
0%