Read our Five Fast Facts for more insight into the key trends that impacted the Atlanta office office market during the second quarter.
- ROBUST SUBURBAN LEASING DRIVES DEMAND
Second quarter leasing activity totaled 2.1 MSF, bolstering Atlanta’s mid-year leasing total to 4.1 MSF – a 36.4% increase over the same point last year. Demand was primarily concentrated in suburban submarkets, which accounted for 73.6% of the Metro’s YTD leasing total.
- TOP THREE IN NATION FOR ABSORPTION
Quarterly absorption gains totaled 787,997 SF, the third highest in the nation. Five of Atlanta’s nine major submarkets posted occupancy improvements in Q2, with Midtown boasting the most substantial gains at 497 KSF.
- VACANCY HITS RECENT LOW
Overall vacancy dropped 60 bps QOQ to 22.3%, its lowest point since Q1 2021. The CBD recorded an even steeper decrease as vacancy plunged 120 bps during the same period.
- ASKING RENTS CLIMB WHILE NET EFFECTIVE RENTS FALL
Atlanta’s direct asking rental rate climbed 2.3% YOY to $30.04 psf, while an increase in concessions caused a dip in net effective rents, indicating a shift toward occupiers’ favor.
- TOP LEASES ILLUSTRATE FLIGHT TO QUALITY
The flight to quality continued as users demonstrated a preference for new, highly-amenitized space. The three largest leases of the quarter were executed in buildings that have not yet delivered.
