Atlanta Office Occupier's Guide - Q1 2023

The Atlanta office market is still experiencing difficulties due to the COVID-19 pandemic, with over 5 million SF of new space available but demand for office space not keeping up. Despite being one of the top-performing office markets in the country, Atlanta has seen a 1 million-SF deficit of net absorption since 2020 Q2, largely due to the impact of the pandemic. Sublease availability has also increased to a 15-year high, with Home Depot recently adding over 600,000 SF to the already significant amount of sublease space on the market. Most available space on the market is classified as Class A and B, indicating high-quality space. However, this space is spread out across multiple submarkets. The increasing number of businesses downsizing or seeking more flexible leasing arrangements in response to the pandemic has led to the average lease size continuing to shrink. Despite the challenges posed by the pandemic, the Atlanta office market is still holding strong, with over 5 million SF of new space available. However, there are some concerning trends, such as a deficit in net absorption and a high level of sublease availability.