Atlanta Real Estate Market Reports

Atlanta Office Market

In the second quarter of 2025, annual full-service asking rates increased by 1.0% to an all-time high of $32.62/SF. On a year-over-year basis, asking rates increased by 4.5%. Still, the pace of rent growth has generally been moderating and is expected to remain below the pre-pandemic average annual growth levels of 6.3%. Although there were no new deliveries at the end of the second quarter of 2025, move-outs slightly outpaced move-ins, resulting in negative net absorption of 94,401 SF. Despite this, the vacancy rate held steady quarter over quarter at the all-time high of 26.5%. The under-construction pipeline has remained unchanged over the past three quarters at 522,000 SF across four projects, reflecting the lowest level in recent years. The historically low pipeline will improve the supply-demand imbalance. The total number of active tenants seeking space in the market rose significantly this quarter, with Newmark tracking the highest number of 25,000-SF and larger requirements in over three years.

Atlanta Industrial Market

Industrial average asking rents increased by 0.9% quarter over quarter and 2.3% year over year to an all-time high of $7.06/SF. Net absorption dropped substantially in the second quarter of 2025, with move-outs outpacing move-ins by 2.6 MSF, the steepest quarterly decline reported since mid-2009. New supply reported a more than fourfold increase to 3.9 MSF quarter over quarter. Coupled with negative absorption, the vacancy rate increased by 70 basis points quarter over quarter to 9.7%, the highest in over a decade. The construction pipeline trended downwards for the eighth consecutive quarter, reaching 6.2 MSF in the second quarter of 2025.