Atlanta Office Occupier's Guide - Q3 2022

Atlanta’s office market is making significant strides moving into the beginning of Q3 as Atlanta takes the number one spot for the nation’s highest net absorption. In Q2 it was evident many companies were moving to, or expanding their presence in the Atlanta market, helping drive new demand for space in the city and its surrounding submarkets. Even as companies continue to grow their footprint in Atlanta, the major concern for large amounts of sublet space available is still looming. Atlanta’s sublet space, similar to that of Q2, continues to be extremely high at 6.7 million SF, more than double that of a year ago. Furthermore, the macroeconomic and political climate the country is facing this fall also raises concerns for the national office market. Inflationary pressures continue to weigh down on the country as June saw a 40-year high inflation rate of 9.1%, while July was a slight improvement coming in at 8.5%. Construction material costs rising is just one of the many problems facing the construction pipeline in Q3. Although construction costs of all types are rising, developers are still seeing opportunity to break new ground which will only contribute to the extensive availability of the Atlanta market that is becoming harder to navigate.