Atlanta Office & Industrial Market: First Quarter 2025
April 29, 2025Atlanta Office & Industrial Market: Third Quarter 2025
October 16, 2025Atlanta Office & Industrial Market: Second Quarter 2025
Second Quarter 2025
Office market activity stabilizes as tenants and investors demonstrate confidence
The Atlanta office market is showing signs of stabilization with rising leasing activity and declining availability, now at 17.9%, down from 18.7% a year ago. Tenants are signing longer leases and securing space earlier, anticipating a market low. Larger leases are more common, with 25 deals over 50,000 SF in 2024 versus 14 in 2023. Despite this, vacancy remains high at nearly 17%, the highest on record. Older, under-performing buildings are targeted for redevelopment, especially in suburbs like Alpharetta. Tenants are now more focused on ownership stability and improvement allowances.
Sales activity is expected to pick up in 2025 as more distressed properties change hands, though Q1 sales volume remains 70% below pre-pandemic averages. Flat rent growth is forecast, with potential long-term declines due to shifting ownership and market dynamics.
Leasing activity remains stable despite economic uncertainty and softening demand
The Atlanta industrial market has seen inconsistent net absorption, with Q1 2025 trailing figures down over 70% from pre-pandemic averages. Leasing for large spaces picked up in 2024 but has slowed again in 2025, with only six major leases signed amid national uncertainty and tariff concerns. Rising vacancy (8.7%) and sublease space (13 MSF) reflect softening demand, worsened by elevated interest rates and several large tenant move-outs.
In contrast, smaller industrial properties under 50,000 SF remain in high demand, particularly in northern suburbs like Duluth/Suwanee/Buford and North Fulton. These areas benefit from strong population growth and limited supply. While logistics companies continue to sign leases in new facilities, the overall market faces upward pressure on vacancy rates due to continued deliveries and weaker absorption, a trend likely to persist into early 2026.