Atlanta Office & Industrial Market: Year End 2025
January 28, 2026Atlanta Office & Industrial Market: First Quarter 2026
First Quarter 2026
Steady gains signal stronger tenant confidence
Atlanta’s office sector is showing early signs of stabilization, with vacancy trends improving modestly and recent absorption finally turning positive. The overall vacancy rate stood at 22% in Q1, down 0.6 percentage points from a year earlier, while net absorption reached 1.2 million square feet. Leasing momentum has been supported by several large commitments and renewals, including Inspire Brands’ 352,994-square-foot lease and KPMG’s 105,095-square-foot commitment.
Supply conditions are also becoming more constructive as disciplined development helps the region move toward better balance. Only 1.1 million square feet is currently underway, matching the past 12 months of deliveries and limiting the risk of outsized new competition. At the same time, asking rents averaged $30.00 per square foot gross, up 1.9% year over year, with growth projected to reach 2.2% by year end. Buildings that combine strong access, modern systems, and compelling amenity packages are continuing to outperform, creating meaningful opportunities for owners and investors as tenant confidence steadily improves.
Stronger occupier activity supports a more balanced outlook
The metro continues to work through a healthy rebalancing cycle, with vacancy at 8.3% and trailing 12-month net absorption at 3.0 million square feet. Demand remains selective, but leasing fundamentals are encouraging for well-located infill and shallow-bay product, where functionality, access, and labor proximity continue to drive decisions. Larger logistics buildings still face a more competitive lease-up environment, yet tenant engagement is improving as occupiers focus on efficiency, building quality, and long-term operating performance.
Construction remains active, though the tone of new development is increasingly disciplined. Roughly 15.4 million square feet is underway, and deliveries in 2026 are projected at nearly 16.8 million square feet. At the same time, asking rents have increased 2.3% year over year, outperforming the national growth rate of 1.2%. The combination of moderating supply, durable regional demand drivers, and resilient prime-node pricing supports an increasingly constructive outlook.