Q3 2023 Atlanta Office Market Report

Throughout 2023, the Atlanta office market continues to deal with challenges. Most notably for the city, office space consolidation by major companies like AT&T and Invesco in the last quarter, resulted in the largest negative absorption since early 2021. This has disrupted the relative stability in the market seen in 2022. Despite these challenges there is some positivity due to high-profile leases in major hubs of the city such as The Battery near Truist Park and the Beltline in the Midtown area.

Atlanta’s office market is well-positioned, largely due to the benefits from regional affordability, population growth, and a diverse workforce that continues to align with ESG and DEI goals. However, it’s not immune to larger, nationwide trends such as major pauses in growth for companies such as Microsoft’s Atlanta campus. Three main challenges loom: supply, declining lease sizes, and sublease space. Developers added nearly 13 million square feet since 2020, though the pipeline has slowed, with only 2.7 million square feet underway.

Atlanta remains an attractive market for capital investment, ranking as the eighth largest office market in the U.S. by square footage and fifth for total office sales volume over the past year.

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