Atlanta’s Office Market is starting to gain traction compared to other national office markets. Atlanta continues to land large office tenants such as Microsoft, Cisco, Visa, Papa John’s, and FanDuel to develop national and regional headquarters. While effects of the pandemic are still felt throughout the market, the large leases signed by large multi-national companies show the growing tech and financial hub that Atlanta is becoming. Overall absorption improved significantly compared to Q2 of 2021 (1.17 MSF vs. -74 KSF).

The most significant gains came in Class A space in Midtown that showed a Microsoft and Anthem move in, up 909,615 SF. Buckhead is having a horrible year with net absorption topping -1.17 MSF year to date, causing the vacancy rate to rise over 20.6%. So far, the suburban markets are faring better with only a loss year to date of -556 KSF in tenants occupied space, while the CBD has had a -1.22 MSF of lost tenants. There is still a good amount of construction (4.4 MSF) within the market, with Midtown leading the way (1.7 MSF). Rental rates continue to creep up, adding another .15 cents ($29.12) this quarter over Q2 and up $1.69 (6.1%) since the end of 2019. Class A space has been up $2.06 (3.4%) over the same period.

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