by Nahlah Abdur-Rahman
April 24, 2024
Atlanta’s downtown sector makes up the majority of these vacancies despite revitalizations projects underway.
Atlanta is breaking records–for the number of available vacant office spaces around the city.
Data released by real estate firm CBRE revealed that Atlanta continues to have a substantial amount of office spaces that have yet to be rented out. Over a third of all office spaces remain up for grabs in the Georgia capital, an ongoing statistic that is granting Atlanta a not-so-endearing claim to fame.
This trend impacted multiple areas, but especially in its downtown sector. Specifically, the report disclosed that Atlanta’s downtown marked 54.7% of office vacancies. The area is undergoing a revitalization project, deemed the “Master Plan,” after years of stagnation for both residential and business development. However, its current conditions are not helping potential buyers opt-in.
The firm concludes that the wide availability stems from corporations reducing expenses due to the fluctuating economic state.
“Overall, the stubbornly high availability rate in Atlanta continues to be the result of corporate tenants with substantial footprints offloading unneeded space amidst economic distress,” the firm wrote in its report.
“Many of these tenants are opting to sublease entire buildings and consolidate their leases into a single location. In some cases, owner-occupiers are going as far as shedding HQ locations and regional satellite offices in an effort to mitigate the impact of current economic conditions.”
Moreover, the prices for these spaces actually increased despite supply overwhelming the demand. Asking prices began at $31.46 per square foot at the start of 2024. Its contracts with big tech companies like Microsoft are also feeling the pressure to redevelop the area.
However, Atlanta has made some strides toward remedying the issue. Leases were signed on over two million square feet of office space during the first quarter of 2024. While this feat has contributed to the most growth since the pandemic began, it is not enough to fully fix the vacancy problem.
