Economy: Statewide Corporate Investment Remained Strong
In September, Georgia reported that corporate expansion and relocation announcements during fiscal year 2026, including Glytec, Infor, and Pinnacle Financial Partners, were projected to create more than 3,790 jobs and $225 million in investments over the coming years. Combined with Atlanta’s low unemployment rate of 3.2%, well below the U.S. average, these commitments reinforced the region’s economic strength.
Supply: Suburban Occupancy Gains Held Vacancy at Multi-Year Low
Following the Q3 completion of 1072 West Peachtree in Midtown, Atlanta had no office space under construction for the first time in recent history. Despite the building’s vacant delivery, overall vacancy was unchanged quarter-over-quarter (QOQ) at 25.0%, down 39 basis points (bps) year-over-year (YOY) to its lowest level since early 2024. Non-CBD vacancy improved to 20.7%, down 16 bps QOQ and 62 bps annually. The GA 400 Corridor and Northeast Atlanta posted the most significant quarterly improvements, with vacancy rates decreasing 34 bps and 30 bps, respectively, supported by multiple tenant move-ins exceeding 15,000 square feet (sf). Conversely, CBD vacancy increased slightly by 20 bps QOQ to 31.8%, driven largely by the delivery of 1072 West Peachtree.
Atlanta recorded 203,427 sf of positive net absorption in Q3, marking the second consecutive quarter of occupancy gains. The non-CBD submarkets accounted for much of the positive absorption, led by Georgia 400, where Boehringer Ingelheim took occupancy of 88,960 sf at The Medley.
The CBD contributed 46,439 sf of positive absorption, with Midtown leading the urban submarkets at 197,284 sf. Atlanta Gas Light’s 264,300-sf occupancy was the metro’s largest move-in, followed by Morris, Manning, Martin (104,440 sf) and Ernst & Young (102,195 sf). However, all three were relocations, with departures from their previous locations largely offsetting these gains. The large-block move-ins highlighted continued demand for high-quality office space in Atlanta's urban core, even as suburban submarkets accounted for most of the metro’s net occupancy growth.
Demand: Large Renewals Anchor Activity
New leasing demand totaled 920,667 sf in Q3, bringing Metro Atlanta’s year-to-date (YTD) total to nearly 4.4 million square feet (msf). Notably, manufacturers including Superior Essex, ASP Global, Electromagnetic Sensor Technologies, and OFS Brands, accounted for four of the quarter’s six largest new office leases.
Suburban markets continued to drive activity, accounting for 69.2% of Atlanta’s new leasing volume at 636,874 sf. Northwest Atlanta led all submarkets with 214,344 sf of new deals, followed by Midtown (170,496 sf) and Central Perimeter (150,192 sf). CBD new leasing declined 55.9% QOQ to 283,789 sf. Renewal activity increased 24.4% QOQ to 714,737 sf. The quarter’s three largest transactions were all Midtown renewals: Alston & Bird’s 300,000-sf renewal at One Atlantic Center, BakerHostetler’s 95,311-sf renewal and expansion at The Proscenium, and Learfield College’s 42,713-sf renewal at 12th & Midtown.
Rental Rates: CBD Pricing Lifted Metro Rents to New High
Direct asking rents across Metro Atlanta averaged $34.20 per square foot (psf) at quarter-end, up 1.7% QOQ and 2.8% YOY. The CBD led metro growth with rates rising 1.8% from the previous quarter to $40.39 psf, an all-time high. Midtown posted a 2.1% quarterly increase to a record $47.32 psf, supported by the delivery of 1072 West Peachtree, which added 224,000 sf of space marketed with gross asking rents in the $70s. Buckhead followed at $50.52 psf, its fifth consecutive quarterly increase.
Non-CBD asking rents remained comparably stable, increasing 0.6% QOQ and 2.4% YOY to $28.15 psf. Northwest Atlanta recorded the largest quarterly increase among suburban submarkets, rising 1.1% to $29.30 psf.
