Atlanta Office Market Report

Strengthening education base supports outlook. Atlanta continues to deepen its skilled workforce. Reinforced by record university enrollment and a population where roughly 40 percent hold a bachelor’s degree, Atlanta is drawing investments like AIG’s new Brookhaven innovation hub. Local businesses are increasingly capturing this talent, supporting firms already rooted in the metro. Together, with a limited supply pipeline, aggregate vacancy is expected to compress slightly to the mid-18 percent range. On the other hand, net absorption will moderate, though it will still exceed historical norms, bolstered by company expansions, such as Mercedes-Benz’s “1MB” North America HQ. Many of these growth initiatives will continue to favor the suburbs, where vacancy should stay below 17 percent amid limited new supply. The CBD, by contrast, will still face elevated local vacancy, as about a third of the estimated 600,000 square feet set to deliver here remained unaccounted for entering the year.