Atlanta Office Market
Headwinds entering the fourth quarter are significant. Over 5 million SF of new space is available between buildings recently delivered or under construction. There is a one million SF deficit of net absorption since 20Q2, despite 12-month absorption topped by just a handful of office markets worldwide. Three straight quarters of additions bring sublease availability to a 15-year high in Atlanta.
Flight to quality likely involves upper-tier space, but a flight to location is what many in the market believe will separate haves and have-nots moving forward. Providing walkable access to rapid transit and dining and entertainment offers an advantage to a less-connected building. Atlanta offers a diverse and talented labor pool, regional affordability, and a multi-tiered transportation system. Older space may not snag corporate relocators, but well-located buildings near tenants like Google and Truist can get spin-off demand.