Atlanta Office Sublease Market Observations - May 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 6.1 million SF of sublease space available at the end of March 2021, the highest SF of sublease inventory we’ve tracked since April 2020. In January 2021, we saw a decrease in inventory for the first time. The latest numbers below show a slight decrease in sublease inventory by 200,000 SF since last reported in March 2021. 39 new subleases were added last month with the total number of subleases on the market lowering to 549. Since April 2020, rental rates have decreased from $23.37/SF to $22.54/SF. Although we saw a decrease in rental rates from February to March, our latest numbers show a $0.29 increase in April.