ATLANTA OFFICE MARKET OVERVIEW
Home to numerous national headquarters, the Atlanta office market suffered a sharp increase in vacancy rates during the height of the pandemic. However, the market has been steadily improving ever since, as companies return to office full time and unemployment remains well below the national average.
While vacancy rates are still recovering and rental rate growth has been fairly stagnant, the market is experiencing a healthy balance of absorption and new deliveries, which should pave the way for stabilization.
Record investment sales volume and per square foot pricing is also a promising sign for the market, demonstrating investor confidence in Atlanta’s ability to draw office users.
ATLANTA OFFICE MARKET TRENDS TO WATCH
Intown is not out: Urban core / intown areas for office are still in demand, as major companies like Microsoft and Google have proved. The talent coming from Georgia Tech also continues to drive high desirability for intown office space.
Flexibility is the new normal: Flexibility for office will be key moving forward as many businesses push toward a more flex work schedule. This certainly does not mean companies will no longer need physical office space, but we may see footprints shrink when not every employee is required to be at their desks 8 hours a day. Of course, the level of flexibility will differ based on the specific nature of the business and their employee population.
Emphasis on collaboration: For companies that do adopt a more flexible schedule, the office will become a space for collaboration. We can expect employers to seek spaces that promote a team environment and face-to-face interaction.
View or download Franklin Street’s Q4-21 Atlanta Office Market Report below: