Thanks to a limited supply pipeline and steady demand, Atlanta’s office market is as healthy as it’s been in decades. Construction is ramping up, but the amount of new supply underway still falls short of Atlanta’s historical average. A large portion of new projects are breaking ground on a speculative basis, and roughly 50% of the current pipeline is unleased. However, strong leasing velocity, particularly in new properties in Midtown, has helped calm fears of oversupply in the near term. New supply hasn’t weighed on rents yet, as rent growth continues to outperform both the metro’s historical average and the national average.

Though sales volume has slowed from mid-cycle highs, investment activity in Atlanta remains robust. Over 80% of institutional-grade assets have traded at least one time over the past seven years, which may be a partial cause for the slowdown in investment volume. Average pricing continues to increase, and average cap rates have compressed to levels well below last cycle’s trough.

Atlanta benefits from its relative affordability, above-average education levels, and the presence of an international airport. Office users choosing to relocate to or expand in the metro often don’t have to sacrifice quality of labor or accessibility, making Atlanta an ideal spot for tenants.