Atlanta Office Market
Annual full-service asking rental rates increased to a historical high of $32.14/SF, a 2.8% increase year over year. Overall vacancy rates increased by 150 basis points year over year to 25.9%, as year-to-date supply still outpaced occupancies. The under-construction pipeline declined 23.5% year over year to 1.5 MSF and has generally been slowing, bringing supply more in balance with demand. The average deal size for all classes in the second quarter of 2024 was 7,131 SF, with Class A deal size being larger at 11,126 SF on average.
Download Atlanta Office Market Report 2Q24
Atlanta Industrial Market
The market realized 2.4 MSF of net absorption in the second quarter of 2024, a 22.5% decline from the previous quarter, but a 69.3% increase year over year. Supply set a new record with 12.4 MSF of deliveries in the second quarter, a 192.9% year-over-year increase. As a result of supply outpacing demand, vacancy increased by 120 basis points quarter over quarter to 7.9%. Overall rental rates were $6.77/SF, increasing by 3.0% year over year, but are down 2.3% from the all-time high of $6.93/SF in the fourth quarter of 2022. The construction pipeline trended downward for the fourth consecutive quarter to 20.2 MSF under construction, representing a 34.4% quarter-over-quarter decline, the sharpest quarterly decrease in recent years.
Download Atlanta Industrial Market Report 2Q24