Atlanta Office Market
| Average Asking Rent (Price/SF) | $29.84 |
| Vacancy Rate (%) | 22.4% |
| Net Absorption (SF) | 139,985 |
Atlanta’s office market saw an improved performance from the previous quarter, with demand outpacing supply by approximately 140,000 square feet. This was the second quarter since the effects from the pandemic took hold where positive net absorption was recorded within the office segment. The slight improvement translated into overall vacancy dipping 10 basis points from the previous quarter. Vacancy remained 140 basis points higher from this time last year as increased supply, coupled with added vacancy from construction completions, continued to impact the market. Class A space recorded the strongest improvement, with almost 164,000 square feet of absorbed space. The lower-tier Class C segment moved into the number-two spot with over 44,000 square feet of positive net absorption, while Class B space saw supply outpace demand with a return of 68,000 square feet of negative net absorption.
Download Atlanta Office Market Report 1Q22
Atlanta Industrial Market
| Average Asking Rent (Price/SF) | $6.07 |
| Vacancy Rate (%) | 4.7% |
| Net Absorption (SF) | 7,800,666 |
The industrial segment is off to a roaring start this year with 7.8 million square feet in positive absorption. Although this was down from the 8.5 million square feet at the start of 2021, it still signifies another robust outlook for what’s to come later in 2022. Warehouse/distribution space dominated space needs with 7.2 million square feet of net absorption, while the general industrial segment held the number-two space with over 502,000 square feet. R&D/flex saw modest positive absorption with the remainder and had significantly decreased from recent quarters. Despite the strong demand, overall vacancy ticked upward 10 basis points from the previous quarter and can be attributed to the increased supply from construction completions. The vacancy rate dropped 150 basis points from one year ago and below the 5.0% mark, an indicator of tight market conditions. Asking rents ticked upward, pushing above the $6.00/SF mark for the first time in recorded history. All three property segments saw moderate increases, but general industrial space experienced the largest year-over-year gain of $1.13/SF to $5.45/SF from one year ago. R&D/flex space followed closely, increasing by $0.96/SF, while warehouse/distribution space increased by $0.71/SF from the $5.31/SF rate recorded this time last year. Although record asking rents are being seen, Atlanta remained one of the more affordable major markets within the USA and Southeast region.
Download Atlanta Industrial Market Report 1Q22