Atlanta Office Sublease Market Observations - Nov 2020
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. The rental rates for direct space with Landlords has not moved much yet, but as the market sees businesses enter back into negotiations for space in the coming quarters, we expect an impact or some downward pressure. At this point, it is very important to track the sublease inventory because it is one of the best live time indicators we have to view the market. The most recent numbers in October reflect an increase in sublease inventory by 100,000 SF with a total Atlanta sublease inventory of 5,000,000 SF. This inventory is made up of 572 total subleases on the market with 51 of the subleases being new. It is also worth noting that the average asking sublease rate has decreased from $23.37 in April 2020 to $22.71 in October 2020.