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Market Report

Atlanta Office Market Report

4Q 2023

Tech Slowdown and Downsizing Policies Curb Class A Demand;
Tenant Base Steadier in Other Tiers

Vacancy in amenity-rich facilities jumps in first half. AT&T made headlines when it signed a 120,000-square-foot lease in Buckhead, located in a complex it had previously vacated. While this prompted hopes that a concrete return to office would reverse downsizing trends, this is a fraction of the 2.5 million square feet that the conglomerate has exited nationwide in the past half-decade. Amenity-rich spaces have been impacted as some larger firms recalibrate floor plans. Class A vacancy noted a 170-basis-point increase metrowide over the first six months of 2023, placing the rate at 27.5 percent. Developers are taking note of subdued demand. Centennial Yards, a downtown mixed-use complex, placed plans for an office tower on the site on indefinite hold, with owners citing an abrupt decline in interest from tech firms previously in leasing talks.
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