The Atlanta office market has had a slow start in 2024, following the worst absorption year on record in 2023. According to a recent Transwestern study, Q2 showed further decline with negative absorption of 217,451 square feet across Class A and B properties. This brings the total amount of lost space since the beginning of 2023 to over 4.8 million square feet – one of the most severe downturns in Atlanta’s history.
Despite some deals being made and subleases rolling over into direct vacant space, there has been an increase in available sublease space. In fact, an additional 500,000 square feet was added to the sublease market so far this year.
In Q2 of 2024 alone, Atlanta’s overall vacancy rate rose by30 basis points to reach26%, while Class A vacancy rates increased by50 basis points from29.2%to29.7%. Asking rents saw a slight uptick with an increaseof $0 .02inQ22024.Three buildings were completed during this time period for atotalof508641squarefeet,andmoredeliveriesareexpectedinthesecondhalfoftheyear.So far,inall
of
2024,
there have been no new groundbreakings for construction projects – making ittheleastamountofsquarefeetunderconstructionsince2015.
