ATLANTA
OFFICE MARKET REPORT: SUMMER 2023
Atlanta’s office market suffered the third-worst quarterly absorption amount of -1.7 MSF, after Q4-20 (-1.9 MSF) & Q1-21 (-3.1 MSF). YTD the market is -2 MSF in absorption and on pace for one of its worst years ever. Vacancy rates climbed 100 basis points while rental rates continue to rise, as landlords need to get higher rates in the face of stiff concessions. Amenity-rich, walkable buildings are better at retaining tenants than basic buildings, and several large employers like AT&T and Meta have called for their employees to be back in the office at least 3 days a week.
39.5 MSF VACANT SF
22.6%
% VACANT
(1.7 MSF)
QRT NET ABSORPTION
15,003 SF
2.9 MSF
DELIVERED SF
UNDER CONS. SF
$31.24
QUOTED RATES
TOP LEASE
TOP DELIVERABLE
TOP SALE
MIDTOWN - 71,870 SF
N FULTON / FORSYTH - 15,003 SF
MIDTOWN - $215 M
1230 P’TREE ST – DELOITTE
3225 NORTH POINT PKY #1
$435 / PSF SALES PRICE
1115 HOWELL MILL RD NW
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%