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Market Report

Atlanta Office Market Report

2024 Investment Forecast

Sublet Discounts and Highway Access Draw Tenants;
Buyers Keen on Lower-Tier Suburban Offices

Subleasing metrics offer a positive note for office demand amid recent shifts. While available sublet space, as a share of total available space, hit a local record of 14.5 percent in 2023, this metric was well below many other gateway markets, and early indicators suggest that overall subleasing may have peaked before the start of 2024. A difference in the mean marketed rate of roughly $8 between subleased and fully vacant space should help draw tenants to these properties throughout the year. The overall leasing environment will note additional nuances moving forward, with many of this year’s move-ins clustered within a mile of major throughway intersections. The Cumberland and Perimeter Center areas, in particular, are attracting firms seeking to ease commutes for employees located in the northern suburbs. Still, an overall shift toward hybrid working patterns is prompting many tenants to consolidate floor plans, likely extending vacancy increases in the broader submarkets where these clusters are located. While these headwinds may persist for some time, Atlanta is bolstered by a large Fortune 500 presence, featuring as many companies from this cohort as the Washington, D.C. metro area.
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