Atlanta Real Estate Market Reports

Atlanta Office Market

In the first quarter of 2025, annual full-service asking rates eased by 0.2% to $32.40/SF from the previous quarter’s all-time high. However, on a year-over-year basis, asking rates increased by 4.0%. The pace of rent growth has generally been moderating and is expected to remain below the pre-pandemic average annual growth levels. Despite reporting no new deliveries at the end of the first quarter of 2025, move-outs far outpaced move-ins, leading to negative net absorption of 640,658 SF. As a result, the vacancy rate increased by 30 basis points quarter over quarter to 26.5%, an all-time high. The under-construction pipeline remained unchanged from the previous quarter at 522,000 SF between four projects, the lowest level in recent years. The historically low pipeline will improve the supply-demand imbalance. Total “Tenants in the Market” and “New to Market” requirements increased significantly this quarter, with Newmark tracking the highest number of 25,000 SF and larger requirements in over 3 years.

Atlanta Industrial Market

Net absorption in the first quarter of 2025 declined by 13.7% quarter over quarter to 1.1 MSF. New supply dropped significantly, declining by 89.1% quarter over quarter to close at 906,751 SF in deliveries. Despite demand outpacing supply by 235,609 SF, the vacancy rate remained unchanged quarter over quarter at 8.8%, reflecting the scale of the 68.8 MSF of vacant space. Industrial average asking rents increased by 1.0% quarter over quarter to close at $7.00/SF, an all-time high. The increase also represented a 4.2% increase on a year-over-year basis. The construction pipeline edged up by 16.4% quarter over quarter to 9.9 MSF, reversing a trend of six consecutive quarterly declines, but still only representing 1.3% of total inventory.