Atlanta Office Space Leasing: 30% Vacancy Rate

Savills has reported that Metro Atlanta’s office direct vacancy rate is 28.2%, the highest level since 2005 when Savills began tracking the market. This figure does not include sublease supply, which has increased 40% year-over-year (YOY). In Q2 of 2021, a total of 50 million square feet was empty in both direct and sublease spaces; leasing activity for this quarter totaled 1.6 million square feet – up from Q1 but down from 2.2 million square feet in 2022. Despite this, landlords have yet to lower rent rates which rose 0.5 basis points YOY to $30/sq ft in Q2 2021 as tenants struggle with right-sizing their offices due to remote working arrangements for many employees at least part time .