Atlanta Office Market
| Average Asking Rent (Price/SF) | $30.10 |
| Vacancy Rate (%) | 23.1% |
| Net Absorption (SF) | 144,937 |
Atlanta’s office market saw an improved performance from the previous quarter, with demand outpacing supply once again by nearly 145,000 square feet. However, the metro has been slowly giving up space over the last 12 months in the office market, as vacancy was 90 basis points higher from the second quarter of 2021. Increased supply, along with some additional space from construction completions and an increase in overall inventory, helped propel the uptick in vacancy. Class A assets recorded the strongest improvement, with 282,000 square feet of absorbed space. Class C properties remained level with a 1,500-square-foot positive absorption change.
Download Atlanta Office Market Report 2Q22
Atlanta Industrial Market
| Average Asking Rent (Price/SF) | $6.28 |
| Vacancy Rate (%) | 4.4% |
| Net Absorption (SF) | 5,101,775 |
Atlanta’s industrial market continued 2022 with another 5.1 million square feet in positive absorption. Warehouse/distribution assets were once again the most desirable type of property in terms of space needs with 4.7 million square feet of net absorption, while the general industrial segment held the number-two spot with over 546,000 square feet of gained space. R&D/flex properties saw a slight decrease, with 144,000 square feet in negative absorption. In a positive turnaround, overall vacancy ticked downward by 10 basis points from the previous quarter to 4.4% and can be attributed to increased supply from construction completions. The vacancy rate dropped 120 basis points from one year ago and is near the lowest vacancy Atlanta has seen in recent years. The overall asking average rental rate ticked upward, standing at $6.28/SF as the second quarter of 2022 ended. All three property types saw respectable increases in rates, but general industrial space experienced the largest year-over-year gain of $1.86/SF to $6.55/SF. R&D/flex space followed with an increase of $1.54/SF, while warehouse/distribution space increased by $0.83/SF from the $4.54/SF rate recorded this time last year. Rates are expected to grow among all property types but will remain competitive as Atlanta continues to bring new business to the metro.
Download Atlanta Industrial Market Report 2Q22