**Office Conversions Outpace New Construction in Atlanta for First Time Since 2012**
For the first time in over a decade, more office space will be removed from the Atlanta market than added, signaling a significant shift and potential stabilization in the city’s commercial real estate landscape. According to a recent CBRE report, the trend mirrors a broader national movement, where office demolitions and conversions are surpassing new office developments.
Currently in Atlanta, approximately 667,254 square feet of office space is undergoing, or is set to undergo, conversion to other uses including multifamily, hotel, and mixed-use developments. In contrast, only 250,000 square feet of new office construction is expected to be delivered in 2024.
The report highlights a similar pattern across the United States. In the 58 largest office markets nationwide, 23.3 million square feet of office space is scheduled for demolition or conversion, compared to just 12.7 million square feet of office completions projected for the year.
In Atlanta, this shift has been several years in the making. Office construction completions have consistently declined—from 3.5 million square feet in 2018 to 1.1 million square feet in 2023. The sharp drop to just 250,000 square feet in 2024 further illustrates the changing market dynamics. Furthermore, beyond the current year’s conversions, another 2.8 million square feet of office space is already in the pipeline for future conversion or partial redevelopment into other property types.
This transformation in the Atlanta office market reflects growing developer and investor preferences for alternative property types, especially in the wake of evolving workplace trends and shifting tenant demands.
