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.
Download Atlanta Office Market Report 2Q25
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.
Download Atlanta Industrial Market Report 1Q25