Atlanta Office Sublease Market Observations - Feb 2021
Since March 12, 2020 (the start of COVID-19 restrictions in the U.S.) we have seen the sublease inventory continue a steady increase of new space on the Atlanta market. For historical perspective, after the Great Recession that began in 2008, we reached a sublease inventory peak of 5.7 million SF in Q2 2009. We recently surpassed that number with 5.9 million SF of sublease space available at the end of December 2020. However, the latest numbers show a decrease in sublease inventory by 200,000 SF – the first time we’ve seen a decrease in inventory since April. While 32 new subleases were added in January, the total number of subleases on the market decreased from 559 in December to 551 in January. The graph below shows no significant dips in asking sublease rates with rates beginning to slowly level out. For reference, rental rates have decreased from $23.37/SF in April 2020 to $22.06/SF in January 2021.