Atlanta Office Market
Annual full-service asking rental rates increased to a historical high of $32.28/SF, reflecting a 2.9% increase year over year. The annual pace of rent growth has generally been declining since 2017. Overall vacancy rates increased by 70 basis points year over year to 25.8%, as year-to-date supply still outpaced occupancies. The under-construction pipeline declined 33.8% year over year to 1.4 MSF and has generally been slowing, allowing existing inventory more time to absorb vacancies. The average deal size for all classes in the third quarter of 2024 was 5,983 SF, with Class A deal size continuing to be larger at 8,502 SF on average.
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Atlanta Industrial Market
The market realized 2.1 MSF of net absorption in the third quarter of 2024, reflecting a 77.5% increase from the previous quarter and a 442.0% increase year over year. Supply decreased dramatically in the third quarter of 2024, dropping 58.9% year over year to 2.0 MSF, marking an 82.1% decline from the previous quarter’s all-time high of 11.0 MSF. Still, year-to-date supply outpaced demand, resulting in the vacancy rate increasing 260 basis points year over year to 8.0%. Overall rental rates were $6.90/SF, increasing by 4.9% year over year, but are still 0.4% lower than the all-time high of $6.93/SF in the fourth quarter of 2022. The construction pipeline trended downward for the fifth consecutive quarter to 17.5 MSF under construction in the third quarter of 2024, marking a 12.0% quarter-over-quarter decline and accounts for 2.3% of current inventory.
Download Atlanta Industrial Market Report 3Q24