Q2 2023 Atlanta Office Market Report

Atlanta’s office market faced challenges in the second quarter due to continuedlayoffs and paused expansion plans in the technology industry, resulting in decreasedleasing activity. Corporate relocations have also slowed compared to previous quarters. However, Atlanta’s long-term appeal has remained intact, primarily driven byaffordability, population growth, and a diverse workforce. The city’s resilient economy, commitment to ESG and DEI principles, and ongoing development efforts position Atlanta as a vibrant and evolving office market.

Despite optimism within the office market for long-term growth, there is currentlyabundant supply, shrinking lease sizes, and growing sublease availability. Developers have delivered 13 million square feet of office space since 2020, with another 3.5 million square feet under construction. Net absorption has been positive in newer buildings, while older spaces face backfilling as office users downsize spaces. This quarter, the average lease size decreased by 20 percent, and sublease availability reached a 20-year high.

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