The post pandemic office market in Atlanta is still rebounding. Slow rent growth has led to many landlords freezing asking rent rates. The year-over-year rent growth figure of 0.9% for 4- & 5-star assets outperformed the metro average but is down considerably from the roughly 5.5% trailing 12-month rental growth the metro posted right before the onset of the pandemic. With a vacancy rate of 14% and average asking rent rates of $26.93/SF which is slightly up from last quarter, Atlanta office space is still recovering.
Atlanta’s Q3 absorption was twice as much as Q2 but still has a negative of 3 million SF for the year. This could be helped with potential deals with AirBnB and Nike who are currently looking for space in the metro area. With Visa taking over 123,000 SF at former Norfolk Southern HQ creating up to 1,000 jobs and Carvana taking 600,000 SF at the State Farm building, Atlanta appears to still be a highly desired market for U.S. relocations.