FIRST QUARTER, 2021
Atlanta’s office market was in a healthy position heading into the coronavirus pandemic, but market conditions have softened over the past few quarters. However, the market has continued to land big tenants such as Microsoft, Deluxe Corporation, Papa John’s, and Airbnb in key submarkets. Overall leasing activity is starting to pick up, but the metro is contending with the effects of a few large move-outs and a rising amount of sublet availability. Leasing and rent growth indicators will likely continue to feel the impact of the pandemic in the near term.
Atlanta’s industrial market remains among the top in the nation. Immediately following the onset of the pandemic, leasing volume and construction starts surged. The first quarter absorption was at its highest ever driven by multinational firms taking large blocks of space. Vacancy also dropped to a record low. Atlanta is home to one of the largest speculative supply pipelines in the nation, and the demand-side outlook remains strong.